Council Meeting Business Paper

COUNCIL MEETING

BUSINESS PAPER

6.30 PM, TUESDAY 20 OCTOBER 2015

Athanasios (Arthur) Kyron General Manager

Waverley Council PO Box 9 Bondi Junction NSW 1355 DX 12006 Bondi Junction Tel. 9083 8000 E-mail: [email protected]

Council Meeting Agenda 20 October 2015

AGENDA

PRAYER AND ACKNOWLEDGEMENT OF INDIGENOUS HERITAGE

The Mayor will read the following Opening Prayer and Acknowledgement of Indigenous Heritage:

God, we pray for wisdom to govern with justice and equity. That we may see clearly and speak the truth and that we work together in harmony and mutual respect. May our actions demonstrate courage and leadership so that in all our works thy will be done. Amen.

Waverley Council respectfully acknowledges our Indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government Area.

1. Apologies/Leaves of Absence

2. Declarations of Pecuniary and Non-Pecuniary Interests

3. Addresses to Council by Members of the Public

4. Confirmation and Adoption of Minutes

CM/4.1/15.10 Council Meeting – 15 September 2015 ...... 4

CM/4.2/15.10 Extraordinary Council Meeting – 17 September 2015 ...... 25

CM/4.3/15.10 Waverly Traffic Committee Meeting – 24 September 2015 ...... 34

5. Mayoral Minutes ...... 41

6. Obituaries ...... 42

7. Reports

CM/7.1/15.10 Tabling returns by Councillors and Designated Persons disclosing interests ..43

CM/7.2/15.10 Investment Portfolio Report – August 2015 ...... 48

CM/7.3/15.10 Draft 2014/15 Financial Statements ...... 69

CM/7.4/15.10 Small Grants Program 2015/16 (Round 1) ...... 174

CM/7.5/15.10 Tamarama Rock Surfers funding extension ...... 189

CM/7.6/15.10 Planning Agreement Policy 2014 (Amendment No. 1) ...... 214

CM/7.7/15.10 Bronte House Plan of Management - 470 Bronte Road Bronte ...... 278

Page 2 Council Meeting Agenda 20 October 2015

8. Notices of Motion

CM/8.1/15.10 Amalgamation and preserving a minimum of 3 councillors per ward ...... 1050

CM/8.2/15.10 Proposal to reinstate questions to the mayor without notice ...... 1051

9. Urgent Business ...... 1052

10. Closed Session ...... 1053

The following matters are proposed to be dealt with in Closed Session, and have been distributed to Councillors separately with the Agenda:

CM/10.1/15.10 CONFIDENTIAL REPORT – Waverley Park Stairs – Evaluation of Tenders

This matter is considered to be confidential under section 10A(2)(c) of the Local Government Act.

CM/10.2/15.10 CONFIDENTIAL REPORT – Waverley’s People, Movement and Places: a study of where we go and how we get there – Evaluation of Tenders

This matter is considered to be confidential under section 10A(2)(c) of the Local Government Act.

CM/10.3/15.10 CONFIDENTIAL REPORT – Eastgate Projects Update

This matter is considered to be confidential under section 10A(2)(c) of the Local Government Act.

11. Resuming in Open Session ...... 1055

12. Meeting Closure

Page 3 Council Meeting 20 October 2015

Confirmation of Minutes CM/4.1/15.10

Subject: Council Meeting Minutes – 15 September 2015 Trim File No.: A08/1053 Author: Al Johnston, Governance Officer Director: Athanasios (Arthur) Kyron, General Manager

Recommendation:

That the minutes of the Council Meeting held on 15 September 2015 be received and noted, and that the minutes be confirmed as a true record of the proceedings of that meeting.

1. Executive Summary

The minutes of the Council Meeting held on 15 September 2015 are submitted to Council for confirmation in accordance with section 375 of the Local Government Act 1993 (NSW), which provides that Council must ensure that full and accurate minutes are kept of the proceedings of its meetings and be confirmed at a subsequent meeting.

2. Introduction/Background

In accordance with section 17.2(4) of Council’s Code of Meeting Practice, the minutes of the Council Meeting held on 15 September 2015 have been issued subject to confirmation at a subsequent meeting.

2.1 Relevant Council Resolutions

There are no previous relevant Council resolutions on this matter.

3. Discussion

Not applicable.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: G1 – Inspiring community leadership is achieved through decision-making processes that are open, transparent, corruption-resistant and based on sound integrated planning. Strategy: G1a – Develop and maintain a framework of plans and policies that ensures open and transparent operations that facilitate equitable benefit sharing and progress towards sustainability. Deliverable: Regular reporting to Council on progress with implementation of integrated corporate plans.

Page 1 4 Council Meeting 20 October 2015

5. Financial impact statement/Timeframe/Consultation

Financial impact statements, timeframes and consultation are detailed within the individual reports attached to the agenda and where amended by the minutes.

6. Conclusion

Council is required to confirm the minutes of the Council Meeting held on 15 September 2015.

7. Attachments

1. Council Meeting Minutes – 15 September 2015.

Page 2 5

MINUTES OF THE ORDINARY COUNCIL MEETING OF WAVERLEY COUNCIL HELD AT WAVERLEY COUNCIL CHAMBERS ON TUESDAY, 15 SEPTEMBER 2015

Present:

Councillor Sally Betts (Mayor) (Chair) Hunter Ward Councillor Tony Kay (Deputy Mayor) Waverley Ward

Councillor Joy Clayton Bondi Ward Councillor Dominic Wy Kanak Bondi Ward Councillor John Wakefield Bondi Ward

Councillor Leon Goltsman Hunter Ward Councillor Miriam Guttman-Jones Hunter Ward

Councillor Angela Burrill Lawson Ward Councillor Andrew Cusack Lawson Ward Councillor Paula Masselos Lawson Ward

Councillor Bill Mouroukas Waverley Ward Councillor Ingrid Strewe Waverley Ward

Staff in attendance:

Peter Monks Acting General Manager, Waverley Corporate Cathy Henderson Director, Waverley Life Mark Wood Director, Waverley Renewal Jane Worthy Internal Ombudsman, Waverley Corporate

At the commencement of proceedings at 6.30 pm, those present were as listed above, with the exception of Cr Wakefield, who arrived at 6.45 pm.

At 8.57 pm, Cr Strewe left the meeting and did not return.

6 Minutes of Council Meeting 15 September 2015

Opening Prayer and Acknowledgement of Local Indigenous Heritage

The Mayor read the following Opening Prayer and Acknowledgement of Indigenous Heritage:

Waverley Council respectfully acknowledges our Indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government Area.

1. Apologies / Leaves of Absence

There were no apologies.

2. Declarations of Pecuniary and Non-Pecuniary Interests

The Chair called for declarations of interest and the following were received:

1. Cr Kay declared a pecuniary interest in Item CM/4.1/15.09 – Council Meeting Minutes – 18 August 2015 – Item CM/7.2/15.08 – Campbell Parade Footpath Seating Pilot, and informed the meeting that his parents-in-law own property in Beach Road, adjacent to the site of The Pacific, and that he will vacate the Chamber during the consideration and vote on the item.

2. Cr Burrill declared a less than significant non-pecuniary interest in Item CM/4.3/15.09 – Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TV.01/15.08 – Brighton Boulevard (East), North Bondi – Proposed Angle Parking, and informed the meeting that she lives in Brighton Boulevard.

3. Cr Kanak declared a less than significant non-pecuniary interest in Item CM/10.2/15.09 – CONFIDENTIAL REPORT – Tamarama Gully – Litigation and Acquisition Update, and informed the meeting that he knows both members of the Fletcher Family, and has also made enquiries about the relationship (if any) of Mr Goldberg, as an adjoining landowner, in his interest in the litigation.

3. Addresses to Council by Members of the Public

1. L Mellos and S Mellos – CM/7.4/15.09 – Suburb Boundary Change – Gibson Street, Waverley.

2. J Crone – CM/4.1/15.09 – Council Meeting Minutes – 18 August 2015.

This is page 2 of the Minutes of the Council Meeting held on 15 September 2015 7 Minutes of Council Meeting 15 September 2015

4. Confirmation and Adoption of Minutes

CM/4.1/15.09 Council Meeting Minutes – 18 August 2015 (A08/1053)

Cr Kay declared a pecuniary interest in this item, and informed the meeting that his parents-in-law own property in Beach Road, adjacent to the site of The Pacific. Cr Kay was not present at, or in sight of the meeting, for the consideration and vote on the item.

MOTION / DECISION Mover: Cr Mouroukas Seconder: Cr Goltsman

That the minutes of the Council Meeting held on 18 August 2015 be received and noted, and that the minutes be confirmed as a true record of the proceedings of that meeting.

J Crone addressed the meeting.

AT 7.22 PM, DURING THE DEBATE ON THIS ITEM, COUNCIL RESOLVED TO ADJOURN THE MEETING FOR FIVE MINUTES. THE MEETING RESUMED AT 7.28 PM.

CM/4.2/15.09 Extraordinary Council Meeting Minutes – 1 September 2015 (A08/1053)

MOTION / DECISION Mover: Cr Burrill Seconder: Cr Clayton

That the minutes of the Extraordinary Council Meeting held on 1 September 2015 be received and noted, and that the minutes be confirmed as a true record of the proceedings of that meeting.

CM/4.3/15.09 Waverley Traffic Committee Meeting Minutes – 27 August 2015 (A08/0077)

Cr Burrill declared a less than significant non-pecuniary interest in Clause TV.01/15.08 – Brighton Boulevard (East), North Bondi – Proposed Angle Parking, and informed the meeting that she lives in Brighton Boulevard.

MOTION / DECISION Mover: Cr Mouroukas Seconder: Cr Kay

That Part 1 of the Minutes of the Waverley Traffic Committee Meeting held on 27 August 2015 be received and noted, and that the recommendations contained therein be adopted.

Save and except the following:

1. Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TV.05/15.08 – Queen Elizabeth Drive, Bondi Beach – Interim Traffic and Parking Measures (A12/0445).

2. Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TC.06/15.08 – Denham Street, Bondi – Alterations to Loading/ No Stopping Zone (A02/0637-02).

This is page 3 of the Minutes of the Council Meeting held on 15 September 2015 8 Minutes of Council Meeting 15 September 2015

3. Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TC.01/15.08 – Albion Street, Waverley – Installation of No Stopping Zone (A02/0637-02).

And that these items be dealt with separately.

CM/4.3.1/15.09 Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TV.05/15.08 – Queen Elizabeth Drive, Bondi Beach – Interim Traffic and Parking Measures (A12/0445)

This matter was saved and excepted by Cr Kay.

MOTION / DECISION Mover: Cr Kay Seconder: Cr Mouroukas

That:

1. The Waverley Traffic Committee recommendation not be adopted.

2. This resolution be read in conjunction with the resolution at Item CM/7.5/15.09 – Bondi Park Traffic and Transport Management.

Cr Kanak requested that it be recorded in the minutes that he voted against the Motion.

CM/4.3.2/15.09 Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TC.06/15.08 – Denham Street, Bondi – Alterations to Loading/ No Stopping Zone (A02/0637-02)

This matter was saved and excepted by Cr Mouroukas.

MOTION / DECISION Mover: Cr Mouroukas Seconder: Cr Kay

That the recommendation be adopted subject to Clause 1 being amended to read as follows:

‘Council alters the existing restrictions at the Loading/No Stopping in Denham Street on the south- western corner of Denham Street and Bondi Road and installs 6m of NO STOPPING 7am-9am Mon- Fri; 7am-6pm Sat-Sun; LOADING ZONE 9am-2pm Mon-Fri' ½ P Parking 2pm-6pm Mon-Fri commencing 10m north of Boonara Lane.’

CM/4.3.3/15.09 Waverley Traffic Committee Meeting Minutes – 27 August 2015 – Clause TC.01/15.08 – Albion Street, Waverley – Installation of No Stopping Zone (A02/0637-02)

This matter was saved and excepted by Cr Cusack.

MOTION / UNANIMOUS DECISION Mover: Cr Cusack Seconder: Cr Burrill

This is page 4 of the Minutes of the Council Meeting held on 15 September 2015 9 Minutes of Council Meeting 15 September 2015

That Council installs a 17.4 m long ‘No Stopping’ zone and 2.5 m long motorcycle parking zones on the western side of Albion Street south of Macpherson Street.

5. Mayoral Minutes

There were no mayoral minutes.

6. Obituaries

CM/6/15.09 Obituaries (A02/0017)

MOTION / DECISION Mover: Cr Clayton Seconder: Cr Goltsman

Les Burroughs Simon Kennedy Bill Symonds Bruce Williamson Faith Patterson Bernie Ford

That a letter of sympathy be forwarded to the families of the deceased named expressing the condolences of the Mayor, Councillors and staff in the bereavement they have experienced.

Council rose for a minute’s silence as a mark of respect for the deceased and for the souls of people generally who have died in our Local Government area.

7. Reports

CM/7.1/15.09 Investment Portfolio Report – June 2015 (A03/2211)

MOTION / DECISION Mover: Cr Cusack Seconder: Cr Burrill

That Council:

1. Receives the Investment Portfolio Report – June 2015.

2. Notes that all investments have been made in accordance with the requirements of section 625 of the Local Government Act 1993 and directions from the Minister for Local Government, including Ministerial Investment Orders and Council’s Investment Policy.

This is page 5 of the Minutes of the Council Meeting held on 15 September 2015 10 Minutes of Council Meeting 15 September 2015

CM/7.2/15.09 Investment Portfolio Report – July 2015 (A03/2211)

MOTION / DECISION Mover: Cr Cusack Seconder: Cr Burrill

That Council:

1. Receives the Investment Portfolio Report – July 2015.

Cr Clayton was not present for the vote on this item.

CM/7.3/15.09 Investment Policy Review (A05/0197)

MOTION / DECISION Mover: Cr Cusack Seconder: Cr Burrill

That Council:

1. Adopts the Investment Policy 2015, as attached to this report.

2. Seeks advice from its independent financial advisers on more sustainable investment options.

CM/7.4/15.09 Suburb Boundary Change – Gibson Street, Waverley (A03/1491)

MOTION / UNANIMOUS DECISION Mover: Cr Burrill Seconder: Cr Cusack

That Council:

1. Supports the application from the residents of Gibson Street, Waverley, to the Geographical Names Board of NSW to incorporate the western section of Gibson Street into the suburb of Bronte.

2. Writes to the property owners and the residents of 66, 68, 70, 72-96, 98 and 100 Henrietta Street, and 360, 362 and 364 Bronte Road, to gauge their support in having the Waverley/Bronte suburb boundary adjusted to include these properties in the suburb of Bronte.

3. Publically advertises the above proposals in the local paper with a 14 day consultation period to allow for submissions from members of the public.

4. Makes a submission to the GNB on behalf of the residents of Gibson Street, Waverley, to incorporate the western section of Gibson Street into the suburb of Bronte.

This is page 6 of the Minutes of the Council Meeting held on 15 September 2015 11 Minutes of Council Meeting 15 September 2015

5. Pending broad support is received for the proposed suburb change to the Henrietta Street and Bronte Road properties, includes these changes in the submission to the GNB.

6. Advises the Chief Petitioner of its decision.

Figure 1. Map – http://maps.six.nsw.gov.au

A = Gibson Street, Waverley. B = 360, 362 and 364 Bronte Road, 98 and 100 Henrietta Street, Waverley. C = 66, 68, 70, 72–96 Henrietta Street, Waverley.

L Mellos and S Mellos addressed the meeting.

CM/7.5/15.09 Bondi Park Traffic and Transport Management (A12/0445)

MOTION Mover: Cr Kay Seconder: Cr Mouroukas

That Council:

1. Approves the proposed short-term traffic management solutions for the Queen Elizabeth Drive (QED) car park entry and car park exit, as shown in drawing L1.01 Issue C and drawing L1.03 Issue C respectively, tabled at the Council Meeting on 15 September 2015, and place making

This is page 7 of the Minutes of the Council Meeting held on 15 September 2015 12 Minutes of Council Meeting 15 September 2015

solutions as outlined in this report, subject to officers giving consideration to alternative treatment of the merging of traffic from Park Drive into QED near the exit to Campbell Parade.

2. Defers implementation of a short-term traffic management solution for the Pavilion shared zone until completion of the QED tunnel works at the end of November 2015, and in the interim while the construction zone is in place installs recycled half wine barrels to form a continuous barrier delineating a defined pedestrian zone.

3. Notes the outstanding implementation issues of the proposed plan for the Pavilion shared zone, being illegal car and truck parking and the area being used as a drop off / pick up zone.

4. Investigates the Pavilion shared zone for the implementation issues stated in clause 3 above, and in particular where no recycled half wine barrels are proposed for the east side of the travel lane, to ensure that these implementation issues are mitigated in and adjacent to the shared zone.

5. In order to ensure that a Council endorsed proposed plan for the Pavilion shared zone can be implemented by completion of works on the QED tunnels around late November 2015, prepares a report to the October 2015 Waverley Traffic Committee.

6. Undertakes a Bondi Park traffic and access study to collect baseline data on pedestrian, cyclist and car movements within the park.

7. Approves the bringing forward of the Bondi Plan of Management car park feasibility study to 2016/17, and amends the Long Term Financial Plan accordingly.

8. Investigates the construction of a safer footpath and pedestrian crossing from Campbell Parade, north to south, across the intersection of QED.

9. Investigates appropriate additional signage and/or treatment to kerb, gutter or road to make it clear that cars are entering a one-way entrance to QED.

AMENDMENT 1 Mover: Cr Wakefield Seconder: Cr Strewe

That the Motion be adopted subject to the deletion of Clause 7.

THE AMENDMENT WAS PUT AND DECLARED LOST.

Division For the Amendment: Crs Kanak, Masselos, Strewe and Wakefield. Against the Amendment: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Guttman-Jones, Kay and Mouroukas.

AMENDMENT 2 Mover: Cr Wakefield Seconder: Cr Kanak

That a pedestrian crossing be placed in the vicinity of the works being undertaken in drawing L1.01 Issue C tabled at the Council Meeting on 15 September 2015.

THE AMENDMENT WAS PUT AND DECLARED LOST.

This is page 8 of the Minutes of the Council Meeting held on 15 September 2015 13 Minutes of Council Meeting 15 September 2015

Division For the Amendment: Crs Kanak, Masselos, Strewe and Wakefield. Against the Amendment: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Guttman-Jones, Kay and Mouroukas.

THE MOTION WAS THEN PUT AND DECLARED CARRIED.

Division For the Motion: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Guttman-Jones, Kay and Mouroukas Against the Motion: Crs Kanak, Masselos and Wakefield.

DECISION: That the Motion be adopted.

Cr Strewe was not present for the vote on this Motion.

CM/7.6/15.09 Environmental Sustainability Advisory Committee (ESAC) Recommendations (A10/0022)

MOTION Mover: Cr Goltsman Seconder: Cr Burrill

That Council:

1. Notes the recent environmental initiatives by MPs Gabrielle Upton and Bruce Notley-Smith, and:

(a) Applies for Government grant funding which is being offered to tackle problem waste, improvements to waste infrastructure, food waste avoidance and illegal dumping.

(b) Supports the introduction for the container deposit scheme.

(c) Acknowledges the 12,000 signature petition to the Parliament asking for the banning of light weight plastic bags in NSW.

(d) Acknowledges the ‘clean-up and prevention’ grant already received by Waverley Council for Bulky Waste Management.

(e) Continues to participate with the Member for Vaucluse’s campaign on Clean Up Australia Day at Bondi Beach.

2. Collaborates with Randwick and Woollahra Councils to reconsider the timing of eWaste collection dates, between November and January to cater for the holiday season consumer period.

3. Investigates the possibility of introducing additional public place recycling areas throughout Waverley, in addition to the existing area in Bondi Park, such as Oxford Street Pedestrian Mall, the Library and Council Chambers.

4. Promotes success stories about community-owned solar energy as part of the initiative to meet our community greenhouse gas emission reduction targets.

This is page 9 of the Minutes of the Council Meeting held on 15 September 2015 14 Minutes of Council Meeting 15 September 2015

5. Updates the 3-Council Low Carbon Future Plan and Green Infrastructure Masterplan to include greenhouse gas reduction strategies in multi-unit dwellings (MUDs).

6. Reviews and updates the communications strategy for the 10% Challenge where feasible.

AMENDMENT 1 Mover: Cr Kanak Seconder: Cr Masselos

That the Motion be adopted subject to the first sentence of Clause 1 being amended to read as follows:

‘Notes the recent environmental initiatives by MPs Gabrielle Upton and Bruce Notley-Smith and the political multi-partisan approach historically taken on these initiatives, and:’

THE AMENDMENT WAS PUT AND DECLARED LOST.

Division For the Amendment: Crs Kanak, Guttman-Jones, Masselos and Wakefield. Against the Amendment: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Kay and Mouroukas.

AMENDMENT 2 Mover: Cr Wakefield Seconder: Cr Kanak

That the Motion be adopted subject to all reference to political personages being removed, in particular MPs Upton and Notley-Smith.

THE AMENDMENT WAS PUT AND DECLARED LOST.

THE MOTION WAS THEN PUT AND DECLARED CARRIED.

DECISION: That the Motion be adopted.

Cr Strewe was not present for the consideration and voting on this item.

Cr Kanak requested that it be recorded in the minutes that he voted for Amendment 2.

CM/7.7/15.09 Petition – Objecting to 5/21–27 Waverley Street, Bondi Junction, being used as Backpacker Accommodation (A02/0787-02)

MOTION / DECISION Mover: Cr Cusack Seconder: Cr Burrill

That:

1. The petition objecting to 5/21–27 Waverley Street, Bondi Junction, being used as backpacker accommodation be received and noted, and forwarded to the Executive Manager, Building Waverley.

2. Council notes that the investigation is already underway in regard to this complaint.

This is page 10 of the Minutes of the Council Meeting held on 15 September 2015 15 Minutes of Council Meeting 15 September 2015

Cr Strewe was not present for the consideration and vote on this item.

8. Notices of Motion

CM/8.1/15.09 Developing a Council Media Strategy to Promote Anti-Racism within Waverley (A02/0447)

Notice of Motion submitted by Crs Goltsman and Kay.

MOTION Mover: Cr Goltsman Seconder: Cr Guttman-Jones

That Council:

1. Supports the view that there is no place for racism in Australia.

2. Requests the Multicultural Advisory Committee (MAC) to work with Council staff to review its existing policies and develop a media strategy that promotes anti-racism throughout the Waverley LGA and refers to the:

(a) ‘National Anti-Racism’ strategy presentation to the MAC by the Australian Human Rights Commission, available at:

http://www.waverley.nsw.gov.au/__data/assets/powerpoint_doc/0006/86451/AHRC_p resentation.ppt

(b) ‘Building Social Cohesion In Our Communities’ booklet, a summary of the online resource for local Government 2015. The full resource is available at:

http://www.acelg.org.au/socialcohesion

3. Notes the National Anti-Racism Campaign resolution (OC/5.4/15.05) unanimously endorsed at the May 2015 Operations Committee meeting.

BACKGROUND

In May this year, Council resolved to support the Australian Human Rights Commission (AHRC) ‘Racism. It Stops with Me' campaign. A representative from the AHRC, Ms Anna Nelson, has given two presentations to the Multicultural Advisory Committee (MAC), which were both enthusiastically received and prompted support to further combat racism throughout Waverley. It was agreed that the next MAC meeting scheduled for November 2015 would focus on this issue and invite other community representatives to attend.

At the August 2015 Council meeting, an anti-racism in sport motion was moved but subsequently voted down by Council due to its narrow focus and risk that, if carried, it would jeopardise current initiatives.

This new motion removes these constraints, reinforces Council’s commitment to anti-racism in all forms and contexts, and demonstrates its support for human rights.

An extract from the May 2015 Operations Committee minutes is included below:

This is page 11 of the Minutes of the Council Meeting held on 15 September 2015 16 Minutes of Council Meeting 15 September 2015

OC/5.4/15.05 National Anti-Racism Campaign (A02/0447)

MOTION / UNANIMOUS DECISION Mover: Cr Goltsman Seconder: Cr Clayton

That:

1. Council supports the Australian Human Rights Commission’s Racism. It Stops with Me campaign.

2. As part of this campaign:

(a) The issue of identifying where Council is able to reduce ‘structural discrimination’ be referred to the Multicultural Advisory Committee for further discussion.

(b) Council reviews existing policies and addresses anti-racism if appropriate.

DURING THE DEBATE ON THIS ITEM, CR WAKEFIELD MOVED A PROCEDURAL MOTION, SECONDED BY CR KANAK, THAT THE ITEM LAY ON THE TABLE TO GIVE COUNCILLORS TIME TO CONSIDER WHETHER THE MOTION WAS SIMILAR TO A MOTION MOVED AT THE PREVIOUS COUNCIL MEETING.

THE PROCEDURAL MOTION WAS PUT AND DECLARED LOST.

Division For the Procedural Motion: Crs Kanak, Masselos and Wakefield. Against the Procedural Motion: Crs Betts, Clayton, Cusack, Goltsman, Guttman-Jones, Kay and Mouroukas.

DECISION: That the Procedural Motion not be adopted.

THE SUBSTANTIVE MOTION WAS THEN PUT AND DECLARED CARRIED UNANIMOUSLY.

DECISION: That the Substantive Motion be adopted.

Cr Burrill was not present for the voting on this item.

Cr Strewe was not present for the consideration and voting on this item.

9. Urgent Business

CM/9.1/15.09 Mirvac Development at 18–22 Ocean Street and 30 Wellington Street, Bondi (CCB-105/2015)

MOTION / DECISION Mover: Cr Wakefield Seconder: Cr Kanak

That this matter be dealt with as an item of urgent business.

This is page 12 of the Minutes of the Council Meeting held on 15 September 2015 17 Minutes of Council Meeting 15 September 2015

MOTION / UNANIMOUS DECISION Mover: Cr Wakefield Seconder: Cr Kanak

That:

1. Council continues, and pursues to the fullest, an investigation of the compliance issues of the Mirvac development on Wellington Street and Ocean Street North. The issues to be addressed include:

(a) Dust and noise emanating from the site.

(b) Traffic and loading aspects.

(d) Resident liaison.

(e) That a request be made to install a reticulated water spray.

2. The Director, Waverley Futures, writes to the developer and to the Private Certifier, informing them of Council’s decision and requesting access by Council to the site as needed.

3. Council gives consideration to other planning instruments and regulations to ensure the continued public amenity.

Cr Strewe was not present for the consideration and voting on this item.

10. Closed Session

CM/10/15.09 Closed Session (A02/0649)

Before the motion to close the meeting was put, the Chair provided an opportunity for members of the public to make representations as to whether this part of the meeting should be closed. No representations were received.

MOTION / DECISION Mover: Cr Clayton Seconder: Cr Mouroukas That:

1. Council moves into closed session to deal with the matters listed below, which are classified as confidential under the provisions of section 10A(2) of the Local Government Act 1993 (NSW) for the reasons specified:

CM/10.1/15.09 CONFIDENTIAL REPORT – Officeworks Superstores Pty Ltd, 14–26 Ebley Street, Bondi Junction – Option Lease

This is page 13 of the Minutes of the Council Meeting held on 15 September 2015 18 Minutes of Council Meeting 15 September 2015

advantage on a person with whom Council is conducting (or proposes to conduct) business.

CM/10.2/15.09 CONFIDENTIAL REPORT – Tamarama Gully - Litigation and Acquisition Update

This matter is considered to be confidential under section 10A(2)(g) of the Local Government Act, and Council is satisfied that discussion of this matter in an open meeting would, on balance, be contrary to the public interest as it deals with information that would, if disclosed, confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

CM/10.3/15.09 CONFIDENTIAL REPORT – Bondi Park Upgrade – Stage 1A Landscape Package – Evaluation of Tenders

This matter is considered to be confidential under section 10A(2)(c) of the Local Government Act, and Council is satisfied that discussion of this matter in an open meeting would, on balance, be contrary to the public interest as it deals with information that would, if disclosed, confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

CM/10.4/15.09 CONFIDENTIAL REPORT – Oxford Street Tree Planting – Evaluation of Tenders

This matter is considered to be confidential under section 10A(2)(c) of the Local Government Act, and Council is satisfied that discussion of this matter in an open meeting would, on balance, be contrary to the public interest as it deals with information that deals with personnel matters concerning particular individuals (other than councillors), and information that would, if disclosed, confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

CM/10.5/15.09 CONFIDENTIAL REPORT – Waverley Park Synthetic Field and Associated Lighting – Evaluation of Tenders

CM/10.6/15.09 CONFIDENTIAL REPORT – Bush Regeneration and Restoration – Evaluation of Tenders

This is page 14 of the Minutes of the Council Meeting held on 15 September 2015 19 Minutes of Council Meeting 15 September 2015

CM/10.7/15.09 CONFIDENTIAL REPORT – Bondi Junction Civic Heart Project – Stage 2 – Evaluation of Tenders

2. Pursuant to sections 10A(1), 10(2) and 10A(3) of the Local Government Act, the media and public be excluded from the meeting on the basis that the business to be considered is classified confidential under the provisions of section 10A(2) of the Local Government Act.

3. The correspondence and reports relevant to the subject business be withheld from the media and public as provided by section 11(2) of the Local Government Act.

Pursuant to section 10A(4) of the Act and clause 252 of the Local Government (General) Regulation, members of the public may make representations to the meeting immediately after the motion to close part of the meeting is moved and seconded, as to whether that part of the meeting should be closed.

Cr Strewe was not present for the consideration and vote on this item.

Cr Kanak requested that it be recorded in the minutes that he voted against the Motion.

At 9.55 pm, Council moved into closed session and resumed in open session at 10.48 pm.

CM/10.1/15.09 CONFIDENTIAL REPORT – Officeworks Superstores Pty Ltd, 14–26 Ebley Street, Bondi Junction – Option Lease (A02/0239-02)

MOTION / DECISION Mover: Cr Cusack Seconder: Cr Burrill

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council approves the option lease for Officeworks Superstores Pty Ltd at 14–26 Ebley Street, Bondi Junction, on the proposed terms and conditions as set out in this report.

3. The General Manager and Mayor be authorised to finalise negotiations and execute any necessary documents.

Cr Strewe was not present for the consideration and vote on this item.

This is page 15 of the Minutes of the Council Meeting held on 15 September 2015 20 Minutes of Council Meeting 15 September 2015

CM/10.2/15.09 CONFIDENTIAL REPORT – Tamarama Gully – Litigation and Acquisition Update (A05/1644-03)

Cr Kanak declared a less than significant non-pecuniary interest in this item, and informed the meeting that he knows both members of the Fletcher Family, and has also made enquiries about the relationship (if any) of Mr Goldberg, as an adjoining landowner, in his interest in the litigation.

MOTION / DECISION Mover: Cr Kay Seconder: Cr Mouroukas

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993

2. Council approves the recommendations set out in section 6 of the report.

3. Officers implement the recommendations and advise the representative of the Fletcher Estate.

4. Officers be given the authority to negotiate the reimbursement of outstanding costs, which are able to be fully substantiated, that have already been incurred by the representatives of the Fletcher Estate.

Cr Strewe was not present for the consideration and vote on this item.

Cr Kanak requested that it be recorded in the minutes that he voted against the Motion.

CM/10.3/15.09 CONFIDENTIAL REPORT – Bondi Park Upgrade – Stage 1A Landscape Package – Evaluation of Tenders (A15/0339)

MOTION / DECISION Mover: Cr Clayton Seconder: Cr Mouroukas

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council enters into a contract under clause 178 of the Local Government (General) Regulation 2005 with Regal Innovations Pty Ltd for the Bondi Park Upgrade – Stage 1A Landscape Package project.

3. The unsuccessful tenderers be notified of the tender result.

Cr Strewe was not present for the consideration and vote on this item.

Cr Kanak requested that it be recorded in the minutes that he voted against the Motion.

This is page 16 of the Minutes of the Council Meeting held on 15 September 2015 21 Minutes of Council Meeting 15 September 2015

CM/10.4/15.09 CONFIDENTIAL REPORT – Oxford Street Tree Planting – Evaluation of Tenders (A15/0285)

MOTION / DECISION Mover: Cr Burrill Seconder: Cr Cusack

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council enters into a contract under clause 178 of the Local Government (General) Regulation 2005 with Glascott Landscape and Civil Pty Ltd for the Oxford Street Tree Planting project.

3. The unsuccessful tenderers be notified of the tender result.

Cr Strewe was not present for the consideration and vote on this item.

CM/10.5/15.09 CONFIDENTIAL REPORT – Waverley Park Synthetic Field and Associated Lighting – Evaluation of Tenders (A15/0298)

MOTION / DECISION Mover: Cr Mouroukas Seconder: Cr Kay

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. In accordance with clause 178(3) of the Local Government (General) Regulation 2005, Council rejects all submitted tenders for Waverley Park Synthetic Sports Field and Associated Lighting and enters into negotiation with Polytan Asia Pacific Pty Ltd with a view to reducing the cost of the project.

3. Council notes the reason for not inviting fresh tenders at this time, and the reason for entering into negotiations with Polytan Asia Pacific Pty Ltd, is because:

(a) The scope of the contract will need to be reduced and/or other alternative approaches identified to delivering the service, as the tenders exceeded budget.

(b) A fresh tender process would delay commencement of the project by some months, such that winter sports would likely be significantly disrupted in 2016.

4. Council authorises the Mayor and General Manager to complete negotiations and execute the contract with Polytan Asia Pacific Pty Ltd.

5. Council notes the expected negotiated contract cost set out in the report and refers any required budget amendment to the first quarterly budget review of 2015-16.

This is page 17 of the Minutes of the Council Meeting held on 15 September 2015 22 Minutes of Council Meeting 15 September 2015

Cr Strewe was not present for the consideration and vote on this item.

Crs Kanak and Masselos requested that it be recorded in the minutes that they voted against the Motion.

CM/10.6/15.09 CONFIDENTIAL REPORT – Bush Regeneration and Restoration – Evaluation of Tenders (A15/0141)

MOTION / UNANIMOUS DECISION Mover: Cr Goltsman Seconder: Cr Mouroukas

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council establishes a panel of preferred suppliers for bush regeneration and restoration projects, comprising:

• Marc Stettner, (trading as Apunga). • Sydney Bush Regeneration Company Pty Ltd. • Bush Habitat Restoration Cooperative. • Dragonfly Environmental Pty Ltd. • Toolijooa Pty Ltd. • Bushland Management Solutions (trading as Hills Bushcare).

3. Council enters into contracts under clause 178 of the Local Government (General) Regulation 2005 with the panel members for a period of three years, with an option for a two-year extension.

4. The unsuccessful tenderers be notified of the tender result.

Cr Strewe was not present for the consideration and vote on this item.

CM/10.7/15.09 CONFIDENTIAL REPORT – Bondi Junction Civic Heart Project – Stage 2 – Evaluation of Tenders (A14/0299)

MOTION / DECISION Mover: Cr Burrill Seconder: Cr Cusack

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

This is page 18 of the Minutes of the Council Meeting held on 15 September 2015 23 Minutes of Council Meeting 15 September 2015

2. Council enters into a contract under Clause 178 of the Local Government (General) Regulation 2005 with SJB Architecture for carrying out the Bondi Junction Civic Heart Project Stage 2 Project.

3. The unsuccessful tenderers be notified of the tender result.

Cr Strewe was not present for the consideration and vote on this item.

Crs Kanak and Masselos requested that it be recorded in the minutes that they voted against the Motion.

11. Resuming in Open Session

CM/11/15.09 Resuming in Open Session (A02/0649)

MOTION / DECISION Mover: Cr Goltsman Seconder: Cr Mouroukas

That Council resumes in open session.

Cr Strewe was not present for the consideration and vote on this item.

Resolutions from closed session made public

In accordance with Clause 253 of the Local Government (General) Regulation 2005, when the meeting resumed in open session the Chair announced the resolutions made by Council, including the names of the movers and seconders, while the meeting was closed to members of the public and the media.

12. Meeting Closure

THE MEETING CLOSED AT 10.49 PM.

...... SIGNED AND CONFIRMED MAYOR 20 OCTOBER 2015

This is page 19 of the Minutes of the Council Meeting held on 15 September 2015 24 Council Meeting 20 October 2015

Confirmation of Minutes CM/4.2/15.10

Subject: Extraordinary Council Meeting Minutes – Mayoral Election 17 September 2015 Trim File No.: A08/1053 Author: Al Johnston, Governance Officer Director: Athanasios (Arthur) Kyron, General Manager

Recommendation:

That the minutes of the Extraordinary Council Meeting held on 17 September 2015 be received and noted, and that the minutes be confirmed as a true record of the proceedings of that meeting.

1. Executive Summary

An Extraordinary Council Meeting was held on 17 September 2015 to elect the mayor and deputy mayor.

The minutes of this meeting are submitted to Council for confirmation in accordance with section 375 of the Local Government Act 1993 (NSW), which provides that Council must ensure that full and accurate minutes are kept of the proceedings of its meetings and be confirmed at a subsequent meeting.

2. Introduction/Background

In accordance with section 17.2(4) of Council’s Code of Meeting Practice, the minutes of the Extraordinary Council Meeting held on 17 September 2015 have been issued subject to confirmation at a subsequent meeting.

2.1 Relevant Council Resolutions

There are no previous relevant Council resolutions on this matter.

3. Discussion

Not applicable.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Page 1 25 Council Meeting 20 October 2015

5. Financial impact statement/Timeframe/Consultation

Financial impact statements, timeframes and consultation are detailed within the individual reports attached to the agenda and where amended by the minutes.

6. Conclusion

Council is required to confirm the minutes of the Extraordinary Council Meeting held on 17 September 2015.

7. Attachments

1. Extraordinary Council Meeting Minutes – 17 September 2015.

Page 2 26

MINUTES OF THE WAVERLEY COUNCIL MAYORAL ELECTION MEETING HELD AT WAVERLEY COUNCIL CHAMBERS ON THURSDAY, 17 SEPTEMBER 2015

Present:

Councillor Sally Betts Hunter Ward (Retiring Mayor and Chair / Elected Mayor) Councillor Tony Kay Waverley Ward (Retiring Deputy Mayor / Elected Deputy Mayor)

Councillor Joy Clayton Bondi Ward Councillor John Wakefield Bondi Ward Councillor Dominic Wy Kanak Bondi Ward

Councillor Leon Goltsman Hunter Ward

Councillor Angela Burrill Lawson Ward Councillor Andrew Cusack Lawson Ward Councillor Paula Masselos Lawson Ward

Councillor Bill Mouroukas Waverley Ward Councillor Ingrid Strewe Waverley Ward

At the commencement of proceedings at 6.30pm those present were as listed above with the exception of Cr Wakefield who arrived at 6.42pm.

Officers Present:

Peter Monks Acting General Manager Mark Wood Director – Waverley Renewal Cathy Henderson Director – Waverley Life Jane Worthy Manager, Internal Ombudsman’s Office

This is page 1 of the Minutes of the Council Meeting held on 17 September 2015 27 Cr Betts, the retiring Mayor, assumed the Chair for Items ME/3.1/15.09 to ME/3.3/15.09 on the Agenda and relinquished the Chair to the Returning Officer for the conducting of the elections for Mayor and Deputy Mayor.

Cr Betts, the elected Mayor, assumed the Chair following the elections for Mayor and Deputy Mayor.

Prayer and Acknowledgement of Indigenous Heritage

The Retiring Mayor read the following Opening Prayer and Acknowledgment of Indigenous Heritage:

“God we pray for wisdom to govern with justice and equity. That we may see clearly and speak the truth and that we work together in harmony and mutual respect. May our actions demonstrate courage and leadership so that in all our works thy will be done. Amen.

Waverley Council respectfully acknowledges our indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government Area.”

1. Apologies / Leave of Absence

Apologies were received and accepted from Cr Guttman-Jones.

2. Declarations of Pecuniary and Non-Pecuniary Interests

The Chair called for Declarations of Interests and none were received.

ME/3.1/15.09 Procedure for Election of Mayor and Deputy Mayor by Councillors (A04/0335)

Report dated 10 September 2015 from the General Manager regarding procedures for the election of Mayor and Deputy Mayor by Councillors.

MOTION / DECISION Mover: Cr Kay Seconder: Cr Burrill

That the information be received and noted.

Cr Wakefield was not present for the discussion and vote on this item.

This is page 2 of the Minutes of the Council Meeting held on 17 September 2015 28 ME/3.2/15.09 Decision to Elect a Deputy Mayor (A04/0335)

Councillors may elect a person from among their number to be the Deputy Mayor and the term of the Deputy Mayor may be the same or shorter than the mayoral term.

MOTION / DECISION Mover: Cr Kay Seconder: Cr Burrill

That Council agrees to elect a Deputy Mayor for the term of the Mayor.

Cr Wakefield was not present for the discussion and vote on this item.

ME/3.3/15.09 Method of Voting – Election of Mayor and Deputy Mayor (A04/0335)

If Council receives more than one nomination for the position of Mayor or Deputy Mayor, voting must be one of either open voting, ordinary ballot or preferential ballot.

MOTION / DECISION Mover: Cr Kay Seconder: Cr Burrill

That the voting for the election of the Mayor and Deputy Mayor be by open voting method.

Cr Wakefield was not present for the discussion and vote on this item.

ME/3.4/15.09 Election of Mayor to be conducted by Returning Officer (A04/0335)

The Acting General Manager, as the Returning Officer, informed the meeting that two written nominations in the prescribed form have been received and sought any further nominations before closing nominations.

At the close of nominations, the following nominations had been received:

Cr Betts and Cr Masselos.

The election of Mayor proceeded by means of open voting and the following votes were recorded:

Cr Betts 7 votes – Crs Betts, Burrill, Clayton, Cusack, Goltsman, Kay and Mouroukas.

Cr Masselos 4 votes – Crs Kanak, Masselos, Strewe and Wakefield.

Cr Betts was declared elected as Mayor of Waverley Council for the ensuing 12 month term.

This is page 3 of the Minutes of the Council Meeting held on 17 September 2015 29 ME/3.5/15.09 Election of Deputy Mayor to be conducted by Returning Officer (A04/0335)

The Acting General Manager, as Returning Officer, informed the meeting that two written nominations in the prescribed form have been received and sought any further nominations before closing nominations.

At the close of nominations, the following nominations had been received:

Cr Kanak and Cr Kay

The election of Deputy Mayor proceeded by means of open voting and the following votes were recorded:

Cr Kanak 4 votes – Crs Kanak, Masselos, Strewe and Wakefield.

Cr Kay 7 votes – Crs Betts, Burrill, Clayton, Cusack, Goltsman, Kay and Mouroukas.

Cr Kay was declared elected as Deputy Mayor of Waverley Council for the ensuing 12 month term.

ME/3.6/15.09 Appointment of Committee Members and Delegates (A04/0335)

The members of each Committee, as well as delegates to various organisations, are appointed each year in conjunction with the Mayoral Election.

A list of Committees and their most recent membership was attached to the agenda, as well as the list of organisations requiring Councillor delegates.

The Mayor automatically chairs all Council’s Standing Committees unless s/he declines to do so. If the Mayor declines, Council should appoint the Chair of the Committee. If Council does not appoint the Chair of the Committee, the Committee may appoint its own Chair.

MOTION Mover: Cr Kay Seconder: Cr Goltsman

That Council appoints the members and Chair of each committee and delegates to each organisation as follows:

STANDING COMMITTEE

Operations Committee:

Crs Betts (Mayor), Cusack (Chair), Burrill (Alternate Chair), Mouroukas (Chair), Goltsman (Alternate Chair) and all other Councillors.

This is page 4 of the Minutes of the Council Meeting held on 17 September 2015 30 OTHER COMMITTEES

1. Waverley Traffic Committee

Cr Kay (Chair), (Alternate Cr Mouroukas).

2. Environment Sustainability Advisory Committee

Crs Betts (Mayor) Goltsman (Chair), Kay (Alternate Chair) and Strewe.

3. Community Safety Advisory Committee

Crs Betts (Mayor), Burrill (Chair) and Mouroukas (Alternate Chair)

4. Waverley Surf Life Saving Club Committee

Crs Betts (Mayor), Clayton (Chair) and Goltsman (Alternate Chair).

5. Waverley Access Committee

Crs Burrill (Chair), Guttman-Jones (Alternate Chair) and all other Councillors.

6. Multicultural Advisory Committee

Crs Goltsman (Chair), Guttman-Jones (Alternate Chair) and all other Councillors.

7. Waverley Public Art Committee

Crs Burrill (Chair), Goltsman (Alternate Chair) and Masselos.

8. Waverley Housing Advisory Committee

Crs Betts (Mayor), Clayton (Chair), Burrill (Alternate Chair) and Kanak.

9. Waverley Business Forum

Cr Betts (Mayor) (Co-Chair), (Alternate Co-Chair: Cr Kay).

10. Legal Services Review Panel

Crs Betts (Mayor) and Cusack, Kay and Strewe.

This is page 5 of the Minutes of the Council Meeting held on 17 September 2015 31 11. Waverley Council Audit Committee

Cr Mouroukas (Alternate Member: Cr Kay).

APPOINTMENT OF COUNCILLORS AS DELEGATES TO VARIOUS ORGANISATIONS

12. Southern Sydney Regional Organisation of Councils

Crs Betts (Mayor) and Kay (Alternates Crs Burrill and Mouroukas).

13. Southern Sydney Regional Organisation of Councils: Standing Committee 1

Cr Betts (Mayor) (Alternate: Cr Kay).

14. Southern Sydney Regional Organisation of Councils: Standing Committee 2

Cr Goltsman (Alternate: Cr Burrill).

15. Bondi and Districts Chambers of Commerce

Cr Clayton (Alternate: Cr Goltsman).

16. Sydney Coastal Council’s Group

Crs Betts (Mayor) and Goltsman (Alternate: Cr Mouroukas).

17. NSW Public Libraries Association

Cr Mouroukas.

AMENDMENT Mover: Cr Kanak Seconder: Cr Wakefield

That the Motion be adopted subject to the Mayor declining the position of Chair of the Community Safety Advisory Committee and nominating Cr Burrill to be Chair of the Community Safety Advisory Committee for the mayoral term.

THE AMENDMENT WAS PUT AND DECLARED LOST.

Division For the Amendment: Crs Kanak, Masselos, Strewe and Wakefield. Against the Amendment: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Kay and Mouroukas.

This is page 6 of the Minutes of the Council Meeting held on 17 September 2015 32 THE MOTION WAS THEN PUT AND DECLARED CARRIED.

Division For the Motion: Crs Betts, Burrill, Clayton, Cusack, Goltsman, Kay and Mouroukas. Against the Motion: Crs Kanak, Masselos, Strewe and Wakefield.

DECISION: That the Motion be adopted.

THE MEETING CLOSED AT 7.19 PM.

SIGNED AND CONFIRMED MAYOR 20 OCTOBER 2014

This is page 7 of the Minutes of the Council Meeting held on 17 September 2015 33 Council Meeting 20 October 2015

Adoption of Minutes CM/4.3/15.10

Subject: Waverley Traffic Committee Meeting Minutes – 24 September 2015 Trim File No.: A08/0077 Author: Al Johnston, Governance Officer Director: Athanasios (Arthur) Kyron, General Manager

Recommendation:

That Part 1 of the Minutes of the Waverley Traffic Committee Meeting held on 24 September 2015 be received and noted, and that the recommendations contained therein be adopted.

Save and except the following:

1. ______

1. Executive Summary

Part 1 of the Minutes of the Waverley Traffic Committee meeting held on 24 September 2015 is submitted to Council for adoption in accordance with section 18 of the Waverley Traffic Committee Charter.

Council has the opportunity to ‘save and except’ any of the matters listed in Part 1 of the minutes for further consideration in accordance with section 18.1 of the Waverley Traffic Committee Charter.

2. Introduction/Background

The Waverley Traffic Committee (WTC) is not a committee of Council. The WTC operates under delegation from the Roads and Maritime Services (RMS), an agency of the NSW Government. It is advisory only and has no decision-making powers.

The purpose of the WTC is to make recommendations and provide advice to Council on the technical aspects of proposals to regulate traffic on local roads in Waverley. The recommendations of the WTC must be adopted by Council before they can be implemented

2.1 Relevant Council Resolutions

There are no previous relevant Council resolutions on this matter.

3. Discussion

Not applicable.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Page 1 34 Council Meeting 20 October 2015

5. Financial impact statement/Timeframe/Consultation

Financial impact statements, timeframes and consultation are detailed within the individual reports attached to the WTC meeting agenda.

6. Conclusion

It is recommended that Part 1 of the minutes of WTC meetings be submitted to Council for adoption.

7. Attachments

1. Waverley Traffic Committee Meeting Minutes – 24 September (Part 1).

Page 2 35 MINUTES OF THE WAVERLEY TRAFFIC COMMITTEE MEETING HELD AT THE WAVERLEY COUNCIL CHAMBERS ON THURSDAY, 24 SEPTEMBER 2015

Voting Members Present:

Cr B Mouroukas Waverley Council – Deputy Chair Ms K Cullen Roads and Maritime Services – Traffic Management (South) Sgt L Barrett NSW Police – Traffic Services, Eastern Suburbs Local Area Command Mr J Morrison Representing Gabrielle Upton, MP, Member for Vaucluse and also representing Bruce Notley-Smith, MP, Member for Coogee

Also Present:

Cr T Kay Waverley Council – Chair Mr E Graham State Transit Authority of NSW – Sydney Buses (Eastern Region) Mr D Joannides Waverley Council – Executive Manager, Creating Waverley Ms R Jenkin Waverley Council – Executive Manager, Customer First Mr G Garnsey Waverley Council – Manager, Transport and Development Mr K Wells Waverley Council – Traffic Engineer Mr R Coelho Waverley Council – Governance Officer

At the commencement of proceedings at 10.04 am, those present were as listed above, with the exception of Ms K Cullen, who arrived at 10.13 am; Cr T Kay, who arrived at 11.04 am, but did not assume the Chair; and Ms R Jenkin, who arrived at 11.29 am and left at 11.43 am.

At 11.34 am, Mr E Graham left the meeting and did not return.

PART 1 – MATTERS PROPOSING THAT COUNCIL EXERCISE ITS DELEGATED FUNCTIONS

NOTE: The matters listed under this part of the Agenda propose that Council either does or does not exercise the traffic related functions delegated to it by the RMS. The recommendations made by the Committee under this part of the Agenda will be submitted to Council for adoption.

TC STATE ELECTORATE OF COOGEE

TC.01/15.09 Alfred Street, Bronte – Installation of ‘No Stopping’ Lines (A02/0637-02)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about the installation of yellow-painted ‘No Stopping’ lines at the intersections of Alfred Street and Read Street, and Alfred Street and Darling Street, Bronte.

Council Officer’s Proposal: That Council:

Minutes of the Waverley Traffic Committee Meeting – Thursday, 24 September 2015 1 36

1. Installs a painted yellow ‘No Stopping’ line on the western side of Alfred Street commencing 10 m south of the intersection of Read Street and terminating on Read Street 10 m west of the intersection of Alfred Street.

2. Installs a painted yellow ‘No Stopping’ line on the western side of Alfred Street commencing 10 m north of the intersection of Read Street and terminating on Read Street 10 m west of the intersection of Alfred Street.

3. Installs a painted yellow ‘No Stopping’ line on the eastern side of Alfred Street commencing 10 m south of the intersection of Darling Street and terminating on Darling Street 10 m east of the intersection on Alfred Street.

4. Installs a painted yellow ‘No Stopping’ line on the eastern side of Alfred Street commencing 10 m north of the intersection of Darling Street and terminating on Darling Street 8.8 m east of the intersection of Alfred Street at the western side of the driveway to 36 Alfred Street.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be supported subject to Clause 4 being amended to read as follows:

‘Installs a painted yellow “No Stopping” line on the eastern side of Alfred Street commencing 10 m north of the intersection of Darling Street and terminating on Darling Street 10 m east of the intersection of Alfred Street at the western side of the driveway to 36 Alfred Street.’

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

TC.02/15.09 Dellview Lane, Tamarama – Proposed Temporary Timed No Parking (DA-196/2014)

Report dated 10 September 2015 from the Executive Manager, Creating Waverley, about the installation of a temporary timed No Parking zone on Dellview Lane between Wonderland Avenue and Silva Street, Tamarama.

Council Officer’s Proposal: That Council installs ‘No Parking 7am-5pm Monday to Friday 8am-3pm Saturday’ zones between existing ‘No Parking’ zone signs on the northern side of Dellview Lane between Wonderland Avenue and Silva Street, Tamarama, for the duration of the building works at 17 Wonderland Avenue.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be supported subject to being amended to read as follows:

‘That Council installs a “No Parking 7am-5pm Monday to Friday” zone between existing “No Parking” zone signs on the northern side of Dellview Lane between Wonderland Avenue and Silva Street, Tamarama, for the duration of the building works at 17 Wonderland Avenue.’

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

C Charalambous and M Kell addressed the meeting.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 24 September 2015 2 37 TC.03/15.09 Macpherson Street, Bronte – Alteration to Operational Time of P10 Minute Parking (A02/0638)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about alterations to the times of operation of a P10 minute parking zone adjacent to No. 23 Macpherson Street, Bronte.

Council Officer’s Proposal: That Council alters the existing 6 m of ‘P10 Minute 7am-9am; 5pm-7pm Mon-Fri’ restriction on the western side of the driveway of No. 23 Macpherson Street, Waverley, to ‘P10 Minute 7am-9am; 4pm-6pm Mon-Fri’.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

TC.04/15.09 Hegarty Lane, Bondi Junction – No Stopping Zone for Construction Purposes (A03/2514-04)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about the installation of a No Stopping/Construction Zone in Hegarty Lane, Bondi Junction.

Council Officer’s Proposal: That Council:

1. Installs a 32 m-long ‘NO STOPPING’ zone on the northern side of Hegarty Lane at the rear of 304–308 Oxford Street, Bondi Junction, for a period of 13 weeks.

2. Temporarily relocates an 11 m Loading Zone on the northern side of Hegarty Lane commencing 47.5 m from the intersection of Leswell Street, terminating 58.5 m from the intersection of Leswell Street.

3. Installs No Stopping signs on the outside of the proposed Type 1 Hoarding to be established on the southern side of Hegarty Lane at the rear of 304–308 Oxford Street.

4. Delegates authority to the Executive Manager, Creating Waverley, to extend the duration of the Construction Zone as necessary.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

Minutes of the Waverley Traffic Committee Meeting – Thursday, 24 September 2015 3 38 TC.05/15.09 Walter Street, Bondi Junction – Proposed Change to Parking Restrictions (A02/0637-02)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about proposed changes to parking restrictions in Walter Street, Bondi Junction.

Council Officer’s Proposal: That Council:

1. Receives and notes this report.

2. Changes the parking restrictions in Walter Street to ‘½P 8.00am-12noon; 1P 12noon-8.00pm Permit Holders Excepted Area 22’.

3. Notifies the residents of the street of the Council’s decision prior to installing the signs.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

TV STATE ELECTORATE OF VAUCLUSE

TV.01/15.09 Wairoa Avenue, Bondi Beach – Installation of ‘No Stopping’ Lines (A02/0637-02)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about the installation of yellow-painted ‘No Stopping’ lines at the intersection of Wairoa Avenue and Hastings Parade, Bondi Beach.

Council Officer’s Proposal: That Council:

1. Installs a painted yellow ‘No Stopping’ line on the western side of Wairoa Avenue commencing 18 m south of the intersection of Hastings Parade and terminating on Hastings Parade 10 m west of the intersection of Wairoa Avenue

2. Installs a painted yellow ‘No Stopping’ line on the western side of Wairoa Avenue commencing 10 m north of the intersection of Hastings parade and terminating on Hastings Parade 10 m west of the intersection of Wairoa Avenue.

3. Installs a painted yellow ‘No Stopping’ line on the eastern side of Wairoa Avenue commencing 10 m south of the intersection of Hastings Parade and terminating on Hastings Parade 10 m east of the intersection of Wairoa Avenue.

4. Installs a painted yellow ‘No Stopping’ line on the eastern side of Wairoa Avenue commencing 10 m north of the intersection of Hastings Parade and terminating on Hastings Parade 10 m east of the intersection of Wairoa Avenue.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the Council Officer’s Proposal be

Minutes of the Waverley Traffic Committee Meeting – Thursday, 24 September 2015 4 39 supported.

Voting members present for this item: Representative of the Member for Vaucluse, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

TV.02/15.09 Liverpool Street, Rose Bay – Installation of Traffic Islands (A03/0518)

Report dated 14 September 2015 from the Executive Manager, Creating Waverley, about the construction of two traffic islands and associated signs and linemarking on Liverpool Street, Rose Bay.

Council Officer’s Proposal: That Council installs two traffic islands with associated signage and linemarking on Liverpool Street, Rose Bay, as per drawing No. 8819 attached.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That:

1. Council installs two traffic islands with associated signage, linemarking and guard rail on Liverpool Street, Rose Bay, as per drawing No. 8819 attached.

2. Council removes the parking space on the northern side of Liverpool Street, as shown on page 48 of the agenda, and replaces it with ‘NO STOPPING’.

3. RMS authorises Council to replace the ‘ALL TRAFFIC LEFT’ sign, as shown on page 47 of the agenda, with a ‘LEFT TURN ONLY’ sign.

4. Council replaces the broken line, as shown on page 48 of the agenda, with unbroken lines and chevron markings.

Voting members present for this item: Representative of the Member for Vaucluse, NSW Police representative, RMS representative and Waverley Council representative (Deputy Chair).

TCV ELECTORATES OF COOGEE AND VAUCLUSE

There were no matters affecting the electorates of Coogee and Vaucluse.

TL ITEMS WITHOUT NOTICE

There were no items without notice.

THE MEETING CLOSED AT 12.48 PM.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 24 September 2015 5 40 Council Meeting 20 October 2015

Mayoral Minutes CM/5/15.10

Subject: Mayoral Minutes Author: Governance and Civic

Mayoral minutes are permissible at Waverley Council meetings under the provisions of the Local Government (General) Regulation 2005 (NSW) and Council’s Code of Meeting Practice. Clause 243 of the Regulation and section 9.1 of the Code state the following:

If the mayor is the chairperson at a meeting of Council, the chairperson is, by minute signed by the chairperson, entitled to put to the meeting without notice any matter or topic that is within the jurisdiction of Council or of which Council has official knowledge.

Such a minute, when put to the meeting, takes precedence over all business on Council’s agenda for the meeting. The chairperson (but only if the chairperson is the mayor) may move the adoption of the minute without the motion being seconded.

A recommendation made in a minute of the chairperson (being the mayor) or in a report made by a Council employee is, so far as adopted by Council, a resolution of Council.

As noted in Council’s Code of Meeting Practice, mayoral minutes should not be used to introduce, without notice, matters that are routine, not urgent, or need research or a lot of consideration by Councillors before coming to a decision. These types of matters would be better placed on the agenda, with the usual period of notice given to the Councillors.

Page 1 41 Council Meeting 20 October 2015

Obituaries CM/6/15.10

Subject: Obituaries Trim File No.: A02/0017 Author: Governance and Civic

The Mayor will ask for any obituaries.

Council will rise for a minute’s silence as a mark of respect for the deceased and for the souls of people generally who have died in our Local Government area.

Recommendation:

That a letter of sympathy be forwarded to the families of the deceased named, expressing the condolences of the Mayor, Councillors and staff in the bereavement they have experienced.

Page 1 42 Council Meeting 20 October 2015

Report CM/7.1/15.10

Subject: Tabling returns by Councillors and Designated Persons disclosing interests Trim File No.: A14/0305 Author: Al Johnston, Governance Officer Director: Athanasios (Arthur) Kyron, General Manager

Recommendation:

That Council receives and notes the returns by Councillors and Designated Persons disclosing interests.

1. Executive Summary

This report informs Council of the annual lodgment of returns disclosing the interests of Councillors and designated persons and provides a table of the returns received as required under Section 450A of the Local Government Act 1993.

2. Introduction/Background

Section 450A of the Local Government Act 1993 (the Act) required Councillors and designated persons to lodge an annual return of interests with the General Manager by 30 September each year. Under the Act, “designated persons” include:

· The General Manager; · “Senior staff” of Council (i.e. Directors); · Elected representatives · Any other person who is a member of staff who holds a position identified by the Council as the position of a designated person because it involves the exercise of functions under this or any other Act that could give rise to a conflict between the person’s duty as a member of staff and the person’s private interest.

The form of return is specified by the regulations. Section 450A of the Act requires the General Manager to keep a register of returns and to table the returns at the first Council meeting after the last day for lodgment of returns.

3. Discussion

All Councillors and designated persons, except for those on extended leave or who have since left Council during the period Governance requested the returns be filed, submitted their returns to Governance by the legislative deadline of 30 September.

In compliance with the statutory requirements, Attachment 1 tables all persons identified as “designated persons” and the date of their return. Public access to all the returns is available under the Government Information (Public Access) Act 2009 (the GIPA Act). However, copies of returns are

Page 1 43 Council Meeting 20 October 2015 not required to be made available on Council’s website like other public information prescribed under the GIPA Act.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: G1: Inspiring community leadership is achieved through decision making processes that are open, transparent, corruption resistant and based on sound integrated planning. Strategy: G1b: Promote and embed good governance and corruption prevention practices in operational activities. Deliverable: Internal Audit function supported.

5. Financial impact statement/Timeframe/Consultation

Financial: Costs for the administration of this activity are included in the budget for the Internal Ombudsman’s Office.

Consultation: A memorandum was circulated to all designated persons on 8 August 2015 setting out their requirement to complete the Designated Persons Return and to return it to Governance prior to 31 August 2015. No other consultation was undertaken in relation to this activity.

Timeframe: The Act requires returns to be lodged by 30 September and for them to be tabled at the first Council meeting after lodgment. Council is in line with this timeframe.

6. Conclusion

The Act requires returns to be lodged by 30 September and for them to be tabled at the next Council meeting after that date. Council is in compliance with its statutory obligations.

7. Attachment/s:

1. Attachment 1 - List of designated persons and return dates.

Page 2 44 ATTACHMENT 1 List of designated persons and return dates

Position Title Occupant Received General Manager Arthur Kyron 27-Aug-15 Manager, Internal Ombudsman’s Office Jane Worthy 28-Aug-15 Executive Manager, Digital Waverley Paul White 17-Aug-15 Manager IT Operations Kevin Trinh 28-Aug-15 Executive Manager, Positioning Waverley Chris Hudson 11-Aug-15 Manager, Communications and Engagement Julie Peters 11-Aug-15 Manager, Project Management Office Carla Antunes 22-Sep-15 A/ Executive Manager, Waverley Performance Peter Brown 12-Aug-15 Executive Manager, Waverley Performance Angela Royal On leave Manager, People Culture and Learning Patricia Hatzigiannes 10-Sep-15 Manager, Risk and Safety Christine Schlesinger 18-Aug-15 Executive Manager, Financial Waverley Frank Rombola 12-Sep-15 Manager, Procurement Fleet and Stores Andrew Blacklock 31-Aug-15 Management and Systems Accountant Teena Su 28-Aug-15 Director, Waverley Life Cathy Henderson 21-Sep-15 Executive Manager, Customer First Rachael Jenkin 28-Aug-15 Manager, Customer Parking Colin Handsaker 28-Aug-15 Manager, Business Improvement Customer First Healey Holt 28-Aug-15 Manager, Customer Service Tanya Potts 13-Aug-15 Executive Manager, Safe Waverley Scott Field 27-Aug-15 Manager Health and Compliance Vacant Vacant Senior Environmental Health Officer Simone Brennan 17-Aug-15 Senior Environmental Health Officer Fred Schilt 11-Aug-15 Environmental Health Officer Sasha Kent 11-Aug-15 Environmental Health Officer Andrew Sydes 11-Aug-15 Coordinator Lifeguard Service Bruce Hopkins 22-Sep-15 Executive Manager, Enriching Waverley Linda Bathur 10-Sep-15 Manager, Library and Learning Futures Heather Davis 11-Sep-15 Manager, Cultural Programs Matthew Fallon 31-Aug-15 Manager, Outdoor Events Lorna Bussell 24-Aug-15 Manager, Community Facilities Andrew Best 17-Aug-15 Executive Manager, Caring Waverley Annette Trubenbach 31-Aug-15 Manager, Community Development Vacant Vacant Manager, Older People and Disability Services Chris Bath 28-Aug-15 Manager, Housing Programs & Community Support Leisa Simmons 28-Aug-15 Manager, Children’s Services Christine Egri 13-Aug-15 Director, Bronte Early Education Centre Heather Azzopardi 12-Aug-15 Director, Mill Hill Early Education Centre Jessie Jeung 14-Sep-15 Director, Gardiner Early Education Centre Belinda Afonso 31-Aug-15 Director, Waverley Early Education Centre Robyn Mumford 28-Aug-15 Director, Waverley Renewal Mark Wood 17-Aug-15 Executive Manager, Creating Waverley Dan Joannides 12-Aug-15 Project Manager, Bondi Junction Sharon Cassidy 19-Aug-15

45 ATTACHMENT 1

Manager, Asset Vacant Vacant Manager, Open Space Planning Bianca Simpson On leave A/Manager, Open Space Planning Carl Nugent 17-Aug-15 Manager, Design Minas Kassiou 30-Sep-15 Manager, Traffic and Development Geoff Garnsey 12-Aug-15 Executive Manager, Clean & Attractive Waverley Paul Sparks 13-Aug-15 Manager, Cemetery Vacant Vacant Coordinator, Resource Recovery & Public Place Margaret Diebert Cleansing 31-Aug-15 Sales & Marketing Manager Commercial Waste Joe Torrisi 21-Aug-15 Supervisor Domestic Waste Collection Andrew Daras-Wells 11-Aug-15 Supervisor Domestic Waste Collection Terry Myers 11-Aug-15 Public Place Cleansing Supervisor Adam Elliot 22-Sep-15 Manager, Maintenance and Construction Velibor Trlin 09-Sep-15 Executive Manager, Project Waverley Terry Dodds 22-Aug-15 Senior Project Manager Hugh Thornton 11-Aug-15 Project Manager Mark Leong 30-Aug-15 Project Manager Jack Farag 30-Sep-15 Director, Waverley Futures Peter Monks 17-Aug-15 Executive Manager, Shaping Waverley George Bramis 20-Aug-15 Manager, Economic Development Jenny Coppock 31-Aug-15 Principal Strategic Planner Dan Starreveld 10-Sep-15 Strategic Planner Alex Sarno 18-Aug-15 Senior Strategic Planner Angela Hynes 25-Aug-15 Strategic Planner Christina Heather 25-Aug-15 Strategic Planner Alex Beers 28-Aug-15 Coordinator, Urban Design and Heritage Valerie Giammarco 17-Aug-15 Strategic Planner - Heritage Fleur Mellor 10-Aug-15 Strategic Planner – Urban Design Sascha Martin On Leave Executive Manager, Building Waverley Mitchell Reid 15-Sep-15 Manager, Building Mark Featherstone 22-Sep-15 Senior Building Surveyor Fire Safety Tony Magistrale 31-Aug-15 Senior Building Surveyor Fire Safety Alastair Visch 27-Aug-15 Senior Building Surveyor Fire Safety Vacant Vacant Senior Building Surveyor Warren Banfield 24-Aug-15 Senior Building Surveyor Tony Hilt 28-Aug-15 Senior Building Surveyor Tony Quill 24-Aug-15 Building Surveyor Pools Fritz Funke 22-Sep-15 Manager, Development Assessment Angela Rossi 03-Sep-15 Senior Assessment Officer Ellise Mangion 04-Sep-15 Senior Assessment Officer Emily Dickson 17-Aug-15 Senior Assessment Officer Kylie Lucas 11-Aug-15 Manager, Development Assessment Arif Faruqi 19-Aug-15 Senior Assessment Officer Idaly Yap 24-Aug-15 Fast Track Coordinator Peter Butler 07-Aug-15 Senior Assessment Officer Paul Yachmannikov 07-Aug-15 Assessment Officer Bianca Chiu 18-Aug-15

46 ATTACHMENT 1

Assessment Officer Ben Magistrale 19-Aug-15 Manager, Development Assessment Lee Kosnetter 18-Aug-15 Senior Assessment Officer Beth Matlawski 31-Aug-15 Senior Assessment Officer Andrew Connor 25-Aug-15 Executive Manager, Sustainable Waverley Emily Scott 18-Sep-15 Manager, Green Infrastructure Genevieve Wilson 01-Sep-15 Coordinator, Sustainable Waste Lucas Atkinson 21-Aug-15 Regional Projects Coordinator Anthony Weinberg 18-Aug-15 Senior Environment Officer Sam McGinness 24-Aug-15 Manager, Sustainable Communities Asha Kayla 11-Aug-15 Executive Manager, Waverley Positioning Mary Shiner 01-Sep-15 Councillor Sally Betts 31-Aug-15 Councillor Angela Burrill 10-Aug-15 Councillor Joy Clayton 10-Aug-15 Councillor Leon Goltsman 30-Aug-15 Miriam Guttman- Councillor Jones 31-Aug-15 Councillor Andrew Cusack 31-Aug-15 Councillor Dominic Wy Kanak 31-Aug-15 Councillor Tony Kay 12-Aug-15 Councillor Paula Masselos 10-Aug-15 Councillor Bill Mouroukas 30-Aug-15 Councillor Ingrid Strewe 31-Aug-15 Councillor John Wakefield 28-Aug-15

WAVERLEY DEVELOPMENT ASSESSMENT PANEL Panel Member Hon Paul Stein AM QC 11-Aug-15 Panel Member Hon Angus Talbot 11-Aug-15 Panel Member Michael Harrison 20-Aug-15 Panel Member Jan McCredie 28-Aug-15 Panel Member Stuart McDonald 14-Aug-15 Panel Member Gabrielle Morrish 31-Aug-15 Panel Member Jan Murrell 30-Aug-15 Panel Member Ian Stapleton 10-Aug-15 Panel Member Peter Brennan 20-Aug-15 Allyson Small (nee Panel Member Woolf) 03-Aug-15 Panel Member Mark Maund 12-Aug-15 Panel Member Boyd Sargeant 20-Aug-15 Panel Member George Newhouse 31-Aug-15 Panel Member Susan Hobley 10-Sep-15 Panel Member Audrey Thomas 28-Aug-15

47 Council Meeting 20 October 2015

Report CM/7.2/15.10

Subject: Investment Portfolio Report – August 2015 Trim File No.: A03/2211 Author: Francesco Rombola – Executive Manager Financial Waverley Director: Athanasios (Arthur) Kyron – General Manager

Recommendation:

That Council:

1. Receives the investment portfolio report – August 2015.

1. Executive Summary

For July 2015 Council’s investment portfolio generated $313,683 of interest and for the financial year to date Council’s investment portfolio generated $589,894. The interest on investment budget for the 2015 / 2016 Financial Year was adopted by Council at the June 17 Council meeting and is set at $3,099,340 for the 2015/2016 Financial year. The interest income for the month of $313,683 is 10.12% of the forecasted $3,099,340, while the year to date figure of $589,894 is tracking at 19.03%. These figures show that Council’s investment portfolio is tracking well, and at this early stage, Council is on track to meet its budget.

The following table below illustrates the monthly interest income received by Council and how this tracks against the original budget and the budget following this first quarter adjustment.

Original Actual Actual Tracking Tracking Q1 Tracking Q2 Tracking Q3 Budget Monthly YTD YTD Amended Amended Amended ($) ($) ($) Original Budget Budget Budget Budget % July 3,099,340 276,211 276,211 8.91 - - - Aug 3,099,340 313,683 598,894 19.03

2. Introduction/Background

Clause 212 of the Local Government (General) Regulation requires that Council be provided with a written report setting out details of all money that the Council has invested under section 625 of the Local Government Act 1993 and certifying that these investments have been made in accordance with the Act, regulations, Ministerial Investment Orders and Council’s Investment Policy.

Page 1 48 Council Meeting 20 October 2015

2.1 Relevant Council Resolutions

Council or Committee Minute No. Decision Meeting & Date Waverley council CM/7.3/15.09 That Council: meeting, held on 15 September 2015 1. Adopts the Investment Policy 2015, as attached to this report. Investment Policy Review (A05/0197) 2. Seeks advice from its independent financial advisers on more sustainable investment options.

Waverley Council CM/7.2/15.09 That Council: Meeting held on 15 September 2015. 1. Receives the Investment Portfolio Report – July 2015. Investment report – July 2015 (AO3/2211) 2. Notes that all investments have been made in accordance with the requirements of section 625 of the Local Government Act 1993 and directions from the Minister for Local Government, including Ministerial Investment Orders and Council’s Investment Policy.

3. Discussion

Interest Income – Current Month

For the month of August 2015 Council’s cash investment portfolio generated interest earnings of $313,683 or 10.12% of the full year adopted budget of $3,099,340.

Council’s investment portfolio posted a Marked-to-Market return in August of 3.50% pa versus the AusBond Bank Bill Index benchmark return of 2.15% pa. Based on the ‘yield only’ calculation (Weighted Return of Investments) the portfolio posted a return of 2.96% pa.

The 3.50% Marked-to-Market return is a calculated figure supplied by our external independent investment advisors. It is derived by discounting future cash flows by the bank bill swap rate (adjusted for the bank’s credit rating), to gain a net present value of the investments and in turn an annual rate of return. In the instance of the interest rate being higher than the adjusted swap rate, the annual rate of return is skewed by investments made within that period, as the margin produces an inflated net present value which unwinds as the investment advances to maturity. This therefore adversely affects the performance calculation in later months despite no impact on actual interest earned.

For the financial year to date, Council’s investment portfolio has exceeded the bank bill index benchmark by 1.08% pa (3.23% vs 2.15% pa)

Page 2 49 Council Meeting 20 October 2015

Portfolio Value

Council’s investment portfolio, as at 31 August 2015, has a current market value of $153,926,941 which represents a premium of $1,894,827 above the $152,031,115 face value of the portfolio with the portfolio generating a 2.96% average purchase yield. The table below provides a summary by investment (asset) type.

Average Current $ Face Value Purchase Market Value Gain/(Loss) Asset Group Yield Capital Protected Notes $2,000,000 $1,987,800 ($12,200) 0.00% Fixed Rate Bonds $1,500,000 $1,580,584 $80,584 6.00% Cash Accounts $6,874,378 $6,874.378 $0 1.85% Floating Rate Notes $10,000,000 $10,087,808 $87,808 3.41% Managed Funds $9,356,737 $9,356,737 $0 2.16% Term Deposits $122,300,000 $124,039,635 $1,739,635 3.06% $152,031,115 $153,926,942 $1,894,827 2.96%

Per the table above Council has $2,000,000 invested in Asset Group – Capital Protected Notes which presently has a market value below the face value. This represents a single investment that is due to mature in October 2015 and being capital protected, Council will receive the full $2,000,000 face value of the investment, upon maturity.

Analysis

Attached to this report is the Waverley Council – Summary of Investment Portfolio, as prepared by Council’s independent financial advisor, Prudential Investment Services Corp, for the period ending 31 August 2015.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: G5 – Waverley is financially sustainable with the revenue and resources required to support implementation of the community’s plans and to provide the infrastructure performance and services our community needs.

Strategy: G5a – Promote and advocate the provision of financial reporting systems in an accurate, timely, transparent and honest manner to ensure sustainability of public assets and resources.

Deliverable: Financial advice and coordination to ensure Council meets overall budget performance targets provided.

Including achievement of the stated benchmark measure “Rate of return on cash exceeds AusBond Bank Bill Index” as illustrated in the table below

Page 3 50 Council Meeting 20 October 2015

Portfolio Benchmark Month Last 12 Last 12 Variance % months % months % Sep-14 2.52 2.55 -0.03 Oct-14 3.40 2.76 0.64 Nov-14 3.70 2.77 0.93 Dec-14 3.58 2.76 0.81 Jan-15 3.85 3.00 0.85 Feb-15 3.77 2.76 1.01 Mar-15 11.32 2.44 8.88 Apr-15 1.32 2.21 -0.88 May-15 3.41 2.38 1.02 Jun-15 1.96 2.16 -0.21 Jul - 15 2.96 2.14 0.81 Aug-15 3.50 2.15 1.35 Average % return Over the last 3.76 2.51 1.26 12 months

5. Financial impact statement/Timeframe/Consultation

As at 31 August 2015 Council is on track to achieve budget for the 2015/2016 year.

This report has been prepared in consultation with Council’s Management and Systems Accountant, Revenue Accountant and independent financial advisers, Prudential Investment Services Corp.

6. Conclusion

Council’s investment portfolio has achieved $313,683 in interest receipts for the month of August 2015, and $589,894 for the financial year to date. Council is on track to achieve the adopted budget amount of $3,099,340 for the 2015 / 2016 financial year.

7. Attachment/s:

Waverley Council Investment Portfolio Report August 2015.pdf

Page 4 51 Investment Summary Report August 2015

Waverley Council - Investment Summary Report Page 152 of 17. Waverley Council Executive Summary

Investment Holdings Investment Performance

Face Value ($) Current Value ($) Current Yield (%) 12%

Alternative Investment 2,000,000.00 1,987,800.00 0.0000 0 10%

Bonds 1,500,000.00 1,580,583.79 6.0000 0 8%

Cash 6,874,377.58 6,874,377.58 1.8500 0 6%

Floating Rate Note 10,000,000.00 10,087,808.12 3.4072 0 4%

Managed Funds 9,356,737.00 9,356,737.00 2.1552 0 2% Term Deposit 122,300,000.00 124,039,635.40 3.0558 2 0% 152,031,114.58 153,926,941.89 2.9578 3 Sep 14Oct 14 Nov .. Dec 14 Jan 15 Feb 15Mar 15Apr 15 May .. Jun 15 Jul 15 Aug ..

Portfolio Annualised Return AusBond BB Index Annualised Return

` Investment Policy Compliance ` Total Credit Exposure Highest Individual Exposures Term to Maturities

Face Value ($) Policy Max A-1+ AA MF CBA A-1+ AA MF 01. Cash to 1 year 119,531,114.58 79% 100% A A-2 NAB A A-2 02. 1 year to 3 years 27,500,000.00 18% 50% BBB BoQ BBB 03. 3 years to 10 years 5,000,000.00 3% 30% MEB 0% 20 40 60 80 100 152,031,114.58 % of portfolio B&A

0% 20 40 60 80 100 Portfolio Exposure Investment Policy Limit % used vs Investment Policy Limit

Waverley Council - Investment Summary Report Page 253 of 17. Waverley Council Investment Holdings Report

Cash Accounts Face Current Credit Current Institution Deal No. Reference Value ($) Yield Rating Value ($) 3,190,000.00 1.8500% Commonwealth Bank of Australia A-1+ 3,190,000.00 120789 24hr Call 1,268,820.59 1.8500% Commonwealth Bank of Australia A-1+ 1,268,820.59 120794 General Funds 214,112.34 1.8500% Commonwealth Bank of Australia A-1+ 214,112.34 120795 Trust Funds 1,218,157.36 1.8500% Commonwealth Bank of Australia A-1+ 1,218,157.36 120796 Cemetery Funds 951,577.00 1.8500% Commonwealth Bank of Australia A-1+ 951,577.00 120797 Depositor Funds 8,917.24 1.8500% Commonwealth Bank of Australia A-1+ 8,917.24 120799 Denison St CP 2,483.96 1.8500% Commonwealth Bank of Australia A-1+ 2,483.96 120800 Eastgate CP 4,327.04 1.8500% Commonwealth Bank of Australia A-1+ 4,327.04 120801 Hollywood Av CP 15,982.05 1.8500% Commonwealth Bank of Australia A-1+ 15,982.05 370151 Library Gift 6,874,377.58 1.8500% 6,874,377.58

Managed Funds Face Current Credit Current Institution Fund Name Deal No. Reference Value ($) Yield Rating Value ($) 2,313,528.59 2.0466% New South Wales T-Corp MF Strategic Cash Facility 2,313,528.59 411310 Builder Deposits 7,043,208.41 2.1909% New South Wales T-Corp MF Cash Facility 7,043,208.41 505262 9,356,737.00 2.1552% 9,356,737.00

Term Deposits Maturity Face Credit Purchase Purchase Current Accrued Coupon Rate Institution Deal No. Reference Date Value ($) Rating Price ($) Date Value ($) Interest ($) Frequency

2-Sep-15 2,500,000.00 2.8000% ME Bank A-2 2,500,000.00 1-Jul-15 2,511,746.56 507012 11,890.41 AtMaturity

16-Sep-15 3,000,000.00 3.0000% ME Bank A-2 3,000,000.00 18-Jun-15 3,018,961.51 506182 18,493.15 AtMaturity

21-Sep-15 3,000,000.00 3.1500% Bank of Queensland A-2 3,000,000.00 19-Mar-15 3,043,880.01 503193 42,978.08 AtMaturity

30-Sep-15 3,000,000.00 3.1000% Bank of Queensland A-2 3,000,000.00 24-Mar-15 3,042,301.65 503241 41,021.92 AtMaturity

30-Sep-15 2,500,000.00 2.4000% Commonwealth Bank of Australia A-1+ 2,500,000.00 26-Aug-15 2,501,607.80 508264 986.30 AtMaturity

19-Oct-15 3,000,000.00 3.1200% Commonwealth Bank of Australia A-1+ 3,000,000.00 19-Mar-15 3,046,444.81 503181 42,568.77 AtMaturity

26-Oct-15 2,000,000.00 3.0000% ME Bank A-2 2,000,000.00 24-Jun-15 2,012,825.35 506241 11,342.47 AtMaturity Waverley Council - Investment Summary Report Page 354 of 17. Waverley Council Investment Holdings Report

Term Deposits Maturity Face Credit Purchase Purchase Current Accrued Coupon Rate Institution Deal No. Reference Date Value ($) Rating Price ($) Date Value ($) Interest ($) Frequency 4-Nov-15 2,500,000.00 2.6000% National Australia Bank A-1+ 2,500,000.00 31-Aug-15 2,502,274.69 508315 178.08 AtMaturity 19-Nov-15 3,000,000.00 3.1000% Commonwealth Bank of Australia A-1+ 3,000,000.00 19-Mar-15 3,048,281.48 503182 42,295.89 AtMaturity

9-Dec-15 2,000,000.00 2.9000% Bankwest A-1+ 2,000,000.00 5-Aug-15 2,008,255.60 508055 4,290.41 AtMaturity

21-Dec-15 3,000,000.00 3.0700% Commonwealth Bank of Australia A-1+ 3,000,000.00 19-Mar-15 3,049,821.83 503183 41,886.58 AtMaturity

30-Dec-15 3,000,000.00 3.0500% Commonwealth Bank of Australia A-1+ 3,000,000.00 24-Mar-15 3,048,721.67 503244 40,360.27 AtMaturity

19-Jan-16 2,000,000.00 3.0600% Commonwealth Bank of Australia A-1+ 2,000,000.00 19-Mar-15 2,034,303.11 503184 27,833.42 AtMaturity

3-Feb-16 3,000,000.00 2.9000% Bankwest A-1+ 3,000,000.00 30-Jul-15 3,016,789.92 507301 7,865.75 AtMaturity

10-Feb-16 2,000,000.00 2.9000% National Australia Bank A-1+ 2,000,000.00 13-Aug-15 2,009,223.05 508131 3,019.18 AtMaturity

19-Feb-16 2,000,000.00 3.0500% Commonwealth Bank of Australia A-1+ 2,000,000.00 19-Mar-15 2,035,385.21 503185 27,742.47 AtMaturity

9-Mar-16 1,500,000.00 2.9000% National Australia Bank A-1+ 1,500,000.00 5-Aug-15 1,508,550.68 508054 3,217.81 AtMaturity

17-Mar-16 2,500,000.00 3.0800% National Australia Bank A-1+ 2,500,000.00 17-Mar-15 2,546,706.08 503171 35,441.10 AtMaturity

21-Mar-16 3,000,000.00 3.3000% Westpac Group A-1+ 3,000,000.00 19-Mar-15 3,062,361.55 503194 45,024.66 AtMaturity

21-Mar-16 9,000,000.00 3.3000% Westpac Group A-1+ 9,000,000.00 20-Mar-15 9,186,280.78 503204 134,260.27 Annually

30-Mar-16 3,000,000.00 3.3000% Westpac Group A-1+ 3,000,000.00 24-Mar-15 3,061,755.88 503246 43,668.49 Annually

20-Apr-16 2,500,000.00 2.8700% National Australia Bank A-1+ 2,500,000.00 19-Aug-15 2,512,678.79 508191 2,555.48 AtMaturity

19-May-16 1,800,000.00 3.9500% Bank of Queensland A-2 1,800,000.00 21-May-14 1,835,046.15 452102 20,063.84 Annually

23-May-16 3,000,000.00 4.5500% Westpac Group A-1+ 3,000,000.00 23-May-13 3,086,836.35 389922 37,771.23 Annually

23-May-16 4,000,000.00 2.8000% Bank of Queensland A-2 4,000,000.00 25-Aug-15 4,003,765.60 508256 2,147.95 AtMaturity

15-Jun-16 2,000,000.00 2.9500% National Australia Bank A-1+ 2,000,000.00 16-Jun-15 2,023,247.41 506165 12,446.58 AtMaturity

20-Jun-16 9,000,000.00 3.0600% Commonwealth Bank of Australia A-1+ 9,000,000.00 20-Mar-15 9,183,495.97 503205 124,495.89 SemiAnnually

20-Jun-16 4,000,000.00 2.7800% National Australia Bank A-1+ 4,000,000.00 25-Aug-15 4,019,097.58 508257 2,132.60 AtMaturity

29-Jun-16 3,000,000.00 3.0100% National Australia Bank A-1+ 3,000,000.00 24-Mar-15 3,058,325.18 503242 39,830.96 Annually

20-Jul-16 3,500,000.00 2.8500% Commonwealth Bank of Australia A-1+ 3,500,000.00 17-Aug-15 3,522,270.77 508171 4,099.32 AtMaturity

23-Aug-16 4,000,000.00 2.9500% National Australia Bank A-1+ 4,000,000.00 25-May-15 4,058,480.97 505252 32,005.48 Annually

24-Aug-16 4,000,000.00 2.7500% Bendigo and Adelaide Bank A-2 4,000,000.00 25-Aug-15 3,996,298.88 508258 2,109.59 AtMaturity

20-Sep-16 9,000,000.00 3.0500% National Australia Bank AA- 9,000,000.00 20-Mar-15 9,189,870.09 503202 124,089.04 Annually Waverley Council - Investment Summary Report Page 455 of 17. Waverley Council Investment Holdings Report

Term Deposits Maturity Face Credit Purchase Purchase Current Accrued Coupon Rate Institution Deal No. Reference Date Value ($) Rating Price ($) Date Value ($) Interest ($) Frequency

28-Sep-16 3,000,000.00 3.0100% National Australia Bank AA- 3,000,000.00 24-Mar-15 3,060,597.04 503243 39,830.96 Annually

20-Dec-16 4,500,000.00 3.0500% National Australia Bank AA- 4,500,000.00 20-Mar-15 4,596,304.73 503203 62,044.52 Annually

20-Dec-16 4,500,000.00 3.0400% Commonwealth Bank of Australia AA- 4,500,000.00 20-Mar-15 4,596,840.67 503206 61,841.10 SemiAnnually

122,300,000.00 3.0558% 122,300,000.00 124,039,635.40 1,193,830.00

Floating Rate Notes Next Maturity Face Current Credit Purchase Purchase Current Accrued Security Name Deal No. Coupon Reference Date Value ($) Coupon Rating Price ($) Date Value ($) Interest ($) Date 28-Nov-16 2,000,000.00 3.3833% ME Bank Snr FRN (Nov16) BBSW+1.25% BBB+ 2,000,000.00 28-Nov-13 2,012,361.55 402974 741.55 30-Nov-15

17-May-17 3,000,000.00 3.3400% BEN Snr FRN (May17) BBSW+1.20% A- 3,007,948.76 12-Sep-13 3,030,487.81 398449 4,117.81 17-Nov-15

14-Nov-18 2,000,000.00 3.4150% BEN Snr FRN (Nov18) BBSW+1.27% A- 2,004,260.00 5-Feb-14 2,028,948.22 420520 3,368.22 16-Nov-15

7-Apr-20 3,000,000.00 3.4850% NPBS Snr FRN (Apr20) BBSW+1.35% BBB+ 3,000,000.00 7-Apr-15 3,016,010.55 504013 16,040.55 7-Oct-15

10,000,000.00 3.4072% 10,012,208.76 10,087,808.12 24,268.12

Fixed Rate Bonds

Maturity Face Credit Purchase Purchase Current Accrued Purchase Coupon Security Name Deal No. Reference Date Value ($) Rating Price ($) Date Value ($) Interest ($) Yield

15-Feb-17 1,500,000.00 6.0000% NAB Snr Bond (Feb17) 6.00% AA- 1,483,470.00 15-Feb-12 1,580,583.79 336188 3,708.79 6.2601%

1,500,000.00 1,483,470.00 1,580,583.79 3,708.79 6.2601%

Alternative Investments Maturity Face Credit Purchase Purchase Current Security Name Deal No. Reference Date Value ($) Rating Price ($) Date Value ($) 30-Oct-15 2,000,000.00 Octagon Limited Series 2005-3 EMU A-2 2,000,000.00 1-Nov-05 1,987,800.00 218055

2,000,000.00 2,000,000.00 1,987,800.00

Waverley Council - Investment Summary Report Page 556 of 17. Waverley Council Accrued Interest Report

Accrued Interest Report Deal Face Settlement Maturity Interest Days Interest Percentage Asset Type Number Value ($) Date Date Received ($) Accrued Accrued ($) Return Alternative Investment

Octagon Limited Series 2005-3 EMU 218055 2,000,000.00 1-Nov-05 30-Oct-15 0.00 31 0.00 .00%

0.00 0.00 .00%

Bonds

NAB Snr Bond (Feb17) 6.00% 336188 1,500,000.00 15-Feb-12 15-Feb-17 45,000.00 31 7,664.84 6.00%

45,000.00 7,664.84 6.00%

Cash

Commonwealth Bank of Australia 120789 3,190,000.00 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120794 1,268,820.59 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120795 214,112.34 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120796 1,218,157.36 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120797 951,577.00 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120799 8,917.24 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120800 2,483.96 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 120801 4,327.04 1-Aug-15 31-Aug-15 31

Commonwealth Bank of Australia 370151 15,982.05 1-Aug-15 31-Aug-15 31

Floating Rate Note

ME Bank Snr FRN (Nov16) BBSW+1.25% 402974 2,000,000.00 28-Nov-13 28-Nov-16 17,123.09 31 5,766.80 3.39%

BEN Snr FRN (May17) BBSW+1.20% 398449 3,000,000.00 17-Sep-13 17-May-17 24,968.65 31 8,507.90 3.34%

BEN Snr FRN (Nov18) BBSW+1.27% 420520 2,000,000.00 10-Feb-14 14-Nov-18 17,215.34 31 5,800.82 3.41%

NPBS Snr FRN (Apr20) BBSW+1.35% 504013 3,000,000.00 7-Apr-15 7-Apr-20 0.00 31 8,879.59 3.48%

59,307.09 28,955.11 3.41%

Managed Funds Waverley Council - Investment Summary Report Page 657 of 17. Waverley Council Accrued Interest Report

Accrued Interest Report Deal Face Settlement Maturity Interest Days Interest Percentage Asset Type Number Value ($) Date Date Received ($) Accrued Accrued ($) Return New South Wales T-Corp 411310 2,313,528.59 1-Jul-15 31-Aug-15 0.00 31 3,977.39 2.05%

New South Wales T-Corp 505262 7,043,208.41 1-Jul-15 31-Aug-15 0.00 31 12,952.27 2.19%

0.00 16,929.66 2.16%

Term Deposit

Bankwest 507011 2,000,000.00 1-Jul-15 5-Aug-15 4,602.74 4 526.03 2.40%

Commonwealth Bank of Australia 503180 3,500,000.00 19-Mar-15 17-Aug-15 44,017.53 16 4,664.11 3.04%

National Australia Bank 497191 2,500,000.00 19-Nov-14 19-Aug-15 65,820.49 18 4,339.81 3.52%

ME Bank 507012 2,500,000.00 1-Jul-15 2-Sep-15 0.00 31 5,945.21 2.80%

ME Bank 506182 3,000,000.00 18-Jun-15 16-Sep-15 0.00 31 7,643.84 3.00%

Bank of Queensland 503193 3,000,000.00 19-Mar-15 21-Sep-15 0.00 31 8,026.03 3.15%

Bank of Queensland 503241 3,000,000.00 24-Mar-15 30-Sep-15 0.00 31 7,898.63 3.10%

Commonwealth Bank of Australia 508264 2,500,000.00 26-Aug-15 30-Sep-15 0.00 6 986.30 2.40%

Commonwealth Bank of Australia 503181 3,000,000.00 19-Mar-15 19-Oct-15 0.00 31 7,949.59 3.12%

ME Bank 506241 2,000,000.00 24-Jun-15 26-Oct-15 0.00 31 5,095.89 3.00%

National Australia Bank 508315 2,500,000.00 31-Aug-15 4-Nov-15 0.00 1 178.08 2.60%

Commonwealth Bank of Australia 503182 3,000,000.00 19-Mar-15 19-Nov-15 0.00 31 7,898.63 3.10%

Bankwest 508055 2,000,000.00 5-Aug-15 9-Dec-15 0.00 27 4,290.41 2.90%

Commonwealth Bank of Australia 503183 3,000,000.00 19-Mar-15 21-Dec-15 0.00 31 7,822.19 3.07%

Commonwealth Bank of Australia 503244 3,000,000.00 24-Mar-15 30-Dec-15 0.00 31 7,771.23 3.05%

Commonwealth Bank of Australia 503184 2,000,000.00 19-Mar-15 19-Jan-16 0.00 31 5,197.81 3.06%

Bankwest 507301 3,000,000.00 30-Jul-15 3-Feb-16 0.00 31 7,389.04 2.90%

National Australia Bank 508131 2,000,000.00 13-Aug-15 10-Feb-16 0.00 19 3,019.18 2.90%

Commonwealth Bank of Australia 503185 2,000,000.00 19-Mar-15 19-Feb-16 0.00 31 5,180.82 3.05%

National Australia Bank 508054 1,500,000.00 5-Aug-15 9-Mar-16 0.00 27 3,217.81 2.90% Waverley Council - Investment Summary Report Page 758 of 17. Waverley Council Accrued Interest Report

Accrued Interest Report Deal Face Settlement Maturity Interest Days Interest Percentage Asset Type Number Value ($) Date Date Received ($) Accrued Accrued ($) Return National Australia Bank 503171 2,500,000.00 17-Mar-15 17-Mar-16 0.00 31 6,539.73 3.08% Westpac Group 503194 3,000,000.00 19-Mar-15 21-Mar-16 0.00 31 8,408.22 3.30%

Westpac Group 503204 9,000,000.00 20-Mar-15 21-Mar-16 0.00 31 25,224.66 3.30%

Westpac Group 503246 3,000,000.00 24-Mar-15 30-Mar-16 0.00 31 8,408.22 3.30%

National Australia Bank 508191 2,500,000.00 19-Aug-15 20-Apr-16 0.00 13 2,555.48 2.87%

Bank of Queensland 452102 1,800,000.00 21-May-14 19-May-16 0.00 31 6,038.63 3.95%

Westpac Group 389922 3,000,000.00 23-May-13 23-May-16 0.00 31 11,593.15 4.55%

Bank of Queensland 508256 4,000,000.00 25-Aug-15 23-May-16 0.00 7 2,147.95 2.80%

National Australia Bank 506165 2,000,000.00 16-Jun-15 15-Jun-16 0.00 31 5,010.96 2.95%

Commonwealth Bank of Australia 503205 9,000,000.00 20-Mar-15 20-Jun-16 0.00 31 23,390.14 3.06%

National Australia Bank 508257 4,000,000.00 25-Aug-15 20-Jun-16 0.00 7 2,132.60 2.78%

National Australia Bank 503242 3,000,000.00 24-Mar-15 29-Jun-16 0.00 31 7,669.32 3.01%

Commonwealth Bank of Australia 508171 3,500,000.00 17-Aug-15 20-Jul-16 0.00 15 4,099.32 2.85%

National Australia Bank 505252 4,000,000.00 25-May-15 23-Aug-16 0.00 31 10,021.92 2.95%

Bendigo and Adelaide Bank 508258 4,000,000.00 25-Aug-15 24-Aug-16 0.00 7 2,109.59 2.75%

National Australia Bank 503202 9,000,000.00 20-Mar-15 20-Sep-16 0.00 31 23,313.70 3.05%

National Australia Bank 503243 3,000,000.00 24-Mar-15 28-Sep-16 0.00 31 7,669.32 3.01%

National Australia Bank 503203 4,500,000.00 20-Mar-15 20-Dec-16 0.00 31 11,656.85 3.05%

Commonwealth Bank of Australia 503206 4,500,000.00 20-Mar-15 20-Dec-16 0.00 31 11,618.63 3.04%

114,440.76 284,648.99 3.11%

Grand Totals 218,747.85 338,198.60 3.05%

Waverley Council - Investment Summary Report Page 859 of 17. Waverley Council Investment Performance Report

Annualised Monthly Return (Marked to Market)

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% Jul 15 Jan 15 Oct 14 Feb 15 Apr 15 Jun 15 Sep 14 Dec 14 Mar 15 Nov 14 May 15 Aug 15

Portfolio Annualised Return AusBond BB Index Annualised Return

Historical Performance Summary Portfolio AusBond BB Index Outperformance Aug 2015 3.50% 2.15% 1.35% Last 3 Months 2.81% 2.15% 0.66% Last 6 Months 4.05% 2.25% 1.80% Financial Year to Date 3.23% 2.15% 1.08% Last 12 months 3.76% 2.51% 1.26%

Waverley Council - Investment Summary Report Page 960 of 17. Waverley Council Investment Policy Compliance Report

Total Credit Exposure Individual Institutional Exposures Term to Maturities

A-1+ AA MF CBA A-1+ AA MF 0 to 1yr

A A-2 NAB A A-2 1 to 3yrs BoQ BBB BBB 3 to 10yrs MEB 0% 20% 40% 60% 80% 100% 0% 20 40 60 80 100 % of portfolio BEN Portfolio Exposure

0% 20 40 60 80 100 Portfolio Exposure Investment Policy Limit % used vs Investment Policy Limit Portfolio Exposure Investment Policy Limit

Credit Face Policy % used vs Face Policy Maturity Profile Rating Value ($) Max Parent Group Investment Value ($) Max Policy Limit Long Term AA 22,500,000 Between 0 to 1 Year 119,531,115 79% 100%  Commonwealth Bank of Australia 89%  Short Term A-1+ 84,874,378 Between 1 Year and 3 Years 27,500,000 18% 50%  National Australia Bank 79%  Short Term MF 9,356,737 Between 3 Years and 10 Years 5,000,000 3% 30%  Bank of Queensland 52%  116,731,115 77% 100%  Total 152,031,115 Members Equity Bank 42%  Long Term A 5,000,000 Bendigo and Adelaide Bank 39%  Face Detailed Maturity Profile Short Term A-2 25,300,000 Value ($) Westpac Group 34%  01. Less Than 30 Days 24,731,115 16% 30,300,000 20% 30%  Newcastle Permanent Building Society 20%  02. Between 30 Days and 60 Days 12,500,000 8% Long Term BBB 5,000,000 Octagon Limited Series 2005-3 EMU 9%  03. Between 60 Days and 90 Days 5,500,000 4% 5,000,000 3% 20%  New South Wales T-Corp 6%  04. Between 90 Days and 180 Days 17,000,000 11% 152,031,115 100% 05. Between 180 Days and 365 Days 59,800,000 39%

 = compliant 06. Between 365 Days and 3 Years 27,500,000 18%  = non-compliant 07. Between 3 Years and 5 Years 5,000,000 3%

Total 152,031,115 100%

Waverley Council - Investment Summary Report Page 1061 of 17. Waverley Council Individual Credit Limit Report

Counterparty Limits

Borrower Credit Rating Type Credit Rating Amount Invested ($) Amount Allowed ($) Amount Available ($)

Bank of Queensland Short Term A-2 11,800,000 22,804,667 11,004,667

Total 11,800,000 11,004,667

Bendigo and Adelaide Bank Long Term A 5,000,000 22,804,667 13,804,667

Short Term A-2 4,000,000 22,804,667 13,804,667

Total 9,000,000 13,804,667

Commonwealth Bank of Australia Short Term A-1+ 42,874,378 53,210,890 5,836,513

Long Term AA 4,500,000 38,007,779 5,836,513

Total 47,374,378 5,836,513

Members Equity Bank Short Term A-2 7,500,000 22,804,667 13,304,667

Long Term BBB 2,000,000 15,203,111 13,203,111

Total 9,500,000 13,203,111

National Australia Bank Short Term A-1+ 24,000,000 53,210,890 11,210,890

Long Term AA 18,000,000 38,007,779 11,210,890

Total 42,000,000 11,210,890

New South Wales T-Corp Short Term MF 9,356,737 152,031,115 142,674,378

Total 9,356,737 142,674,378

Newcastle Permanent Building Society Long Term BBB 3,000,000 15,203,111 12,203,111

Total 3,000,000 12,203,111

Octagon Limited Series 2005-3 EMU Short Term A-2 2,000,000 22,804,667 20,804,667

Total 2,000,000 20,804,667

Westpac Group Short Term A-1+ 18,000,000 53,210,890 35,210,890

Total 18,000,000 35,210,890 Waverley Council - Investment Summary Report Page 1162 of 17. Waverley Council Individual Credit Limit Report

Counterparty Limits

Borrower Credit Rating Type Credit Rating Amount Invested ($) Amount Allowed ($) Amount Available ($)

152,031,115

Waverley Council - Investment Summary Report Page 1263 of 17. Waverley Council Individual Credit Limit Report

Commonwealth Bank of Australia 31%

Bendigo and Adelaide Bank 6%

Bank of Queensland Members Equity Bank 8% 6%

Westpac Group 12%

Other National Australia Bank 3% 28% New South Wales T-Corp 6%

Total Portfolio Exposure

Waverley Council - Investment Summary Report Page 1364 of 17. Waverley Council Cash Flows Report

Current Month Cashflows

Transaction Date Deal No. Cashflow Counterparty Asset Type Cashflow Description Cashflow Received 5-Aug-15 507011 Bankwest Term Deposits Interest - Received 4,602.74 Bankwest Term Deposits Maturity Face Value - Received 2,000,000.00

Deal Total 2,004,602.74

508054 National Australia Bank Term Deposits Settlement Face Value - Paid -1,500,000.00

Deal Total -1,500,000.00

508055 Bankwest Term Deposits Settlement Face Value - Paid -2,000,000.00

Deal Total -2,000,000.00

Day Total -1,495,397.26 13-Aug-15 508131 National Australia Bank Term Deposits Settlement Face Value - Paid -2,000,000.00 Deal Total -2,000,000.00

Day Total -2,000,000.00 14-Aug-15 420520 Bendigo and Adelaide Bank Floating Rate Note Coupon - Received 17,215.34 Deal Total 17,215.34

Day Total 17,215.34 17-Aug-15 336188 National Australia Bank Bonds Coupon - Received 45,000.00 Deal Total 45,000.00

398449 Bendigo and Adelaide Bank Floating Rate Note Coupon - Received 24,968.65

Deal Total 24,968.65

503180 Commonwealth Bank of Australia Term Deposits Interest - Received 44,017.53 Commonwealth Bank of Australia Term Deposits Maturity Face Value - Received 3,500,000.00

Deal Total 3,544,017.53

508171 Commonwealth Bank of Australia Term Deposits Settlement Face Value - Paid -3,500,000.00

Deal Total -3,500,000.00

Day Total 113,986.19 19-Aug-15 497191 National Australia Bank Term Deposits Interest - Received 65,820.49 National Australia Bank Term Deposits Maturity Face Value - Received 2,500,000.00

Deal Total 2,565,820.49 Waverley Council - Investment Summary Report Page 1465 of 17. Waverley Council Cash Flows Report

Current Month Cashflows

Transaction Date Deal No. Cashflow Counterparty Asset Type Cashflow Description Cashflow Received

508191 National Australia Bank Term Deposits Settlement Face Value - Paid -2,500,000.00

Deal Total -2,500,000.00

Day Total 65,820.49 25-Aug-15 508256 Bank of Queensland Term Deposits Settlement Face Value - Paid -4,000,000.00 Deal Total -4,000,000.00

508257 National Australia Bank Term Deposits Settlement Face Value - Paid -4,000,000.00

Deal Total -4,000,000.00

508258 Bendigo and Adelaide Bank Term Deposits Settlement Face Value - Paid -4,000,000.00

Deal Total -4,000,000.00

Day Total -12,000,000.00 26-Aug-15 508264 Commonwealth Bank of Australia Term Deposits Settlement Face Value - Paid -2,500,000.00 Deal Total -2,500,000.00

Day Total -2,500,000.00 28-Aug-15 402974 ME Bank Floating Rate Note Coupon - Received 17,123.09 Deal Total 17,123.09

Day Total 17,123.09 31-Aug-15 508315 National Australia Bank Term Deposits Settlement Face Value - Paid -2,500,000.00 Deal Total -2,500,000.00

Day Total -2,500,000.00 Net Cash Movement for Period -20,281,252.15

Next Month Cashflows

Transaction Date Deal No. Cashflow Counterparty Asset Type Cashflow Description Cashflow Due 2-Sep-15 507012 ME Bank Term Deposit Interest - Received 12,082.19 ME Bank Term Deposit Maturity Face Value - Received 2,500,000.00 Deal Total 2,512,082.19 Waverley Council - Investment Summary Report Page 1566 of 17. Waverley Council Cash Flows Report

Next Month Cashflows

Transaction Date Deal No. Cashflow Counterparty Asset Type Cashflow Description Cashflow Due

Day Total 2,512,082.19 16-Sep-15 506182 ME Bank Term Deposit Interest - Received 22,191.78 ME Bank Term Deposit Maturity Face Value - Received 3,000,000.00 Deal Total 3,022,191.78 Day Total 3,022,191.78 21-Sep-15 503193 Bank of Queensland Term Deposit Interest - Received 48,156.16 Bank of Queensland Term Deposit Maturity Face Value - Received 3,000,000.00 Deal Total 3,048,156.16 503205 Commonwealth Bank of Australia Term Deposit Interest - Received 139,586.30 Deal Total 139,586.30 503206 Commonwealth Bank of Australia Term Deposit Interest - Received 69,336.99 Deal Total 69,336.99 Day Total 3,257,079.45 30-Sep-15 503241 Bank of Queensland Term Deposit Interest - Received 48,410.96 Bank of Queensland Term Deposit Maturity Face Value - Received 3,000,000.00 Deal Total 3,048,410.96 508264 Commonwealth Bank of Australia Term Deposit Interest - Received 5,753.42 Commonwealth Bank of Australia Term Deposit Maturity Face Value - Received 2,500,000.00 Deal Total 2,505,753.42 Day Total 5,554,164.38 Net Cash Movement for Period 14,345,517.81

Waverley Council - Investment Summary Report Page 1667 of 17. Waverley Council Cash Flows Report

25,000,000

20,000,000

15,000,000 Cashflow

10,000,000

5,000,000

0 Jul 16 Jul 17 Oct 15 Apr 16 Oct 16 Apr 17 Jan 16 Jun 16 Jan 17 Jun 17 Sep 15 Dec 15 Feb 16 Mar 16 Aug 16 Sep 16 Dec 16 Feb 17 Mar 17 Aug 17 Nov 15 Nov 16 May 16 May 17 Transaction Date

Waverley Council - Investment Summary Report Page 1768 of 17. Council Meeting 20 October 2015

Report CM/7.3/15.10

Subject: Draft 2014/15 Financial Statements Trim File No.: A15/0244 Author: Francesco Rombola, Executive Manager - Financial Waverley Director: Athanasios (Arthur) Kyron – General Manager

Recommendation:

That:

1) in relation to the financial statements required in accordance with Section 413(2)(c) of the Local Government Act 1993, Council resolve that in its opinion the General Purpose Financial Statements, Special Purpose Financial Statements and Special Schedules for the year ended 30 June 2015:

a. have been properly drawn up in accordance with the provisions of the Local Government Act 1993 and the Regulations there under, the Australian Accounting Standards and professional pronouncements, and the Local Government Code of Accounting Practice and Financial Reporting;

b. to the best of the Council’s knowledge and belief the statements present fairly the Council’s operating result and financial position for the year and accords with the Council’s accounting and other records; and

c. the Council is unaware of any matter that would render the financial statements false or misleading in anyway.

2) the Statement by Councillors and Management for the General Purpose Financial Statements and Special Purpose Financial Statements, on page 3 of the Annual Financial Statements, be signed by the Mayor, another Councillor, the General Manager and the Responsible Accounting Officer.

3) the Statement by Councillors and Management for the Special Purpose Financial Statements, on page 2 of the Special purpose Financial Statements, be signed by the Mayor, another Councillor, the General Manager and the Responsible Accounting Officer.

4) the financial statements be referred to the Council’s Auditors for audit.

5) arrangements be made to place copies of the audited financial statements on public exhibition and the necessary advertisements be published.

6) a copy of the audited financial statements be forwarded to the NSW Office of Local Government.

7) the audited financial statements be presented at a meeting of Council to be held in accordance with Section 418 of the Local Government Act 1993.

8) Public notice of the meeting to be held on Tuesday, 17 November 2015, be given to the newspapers to be published in the week commencing 9 November 2015, including the publication of all documents required under Section 418 of the Local Government Act, 1993.

Page 1 69 Council Meeting 20 October 2015

9) Council resolves that at the meeting of Council scheduled for Tuesday, 17 November 2015, Council will present its Audited Financial Report and Auditor’s Report to the public.

1. Executive Summary

To present Council’s draft Annual Financial Statements for the year ended 30 June 2015 and to refer the Draft Annual Financial Statements to audit.

2. Introduction/Background

Section 413 of the Act requires a council to prepare financial reports for each year, and to refer them for audit as soon as practical and resolve to refer the Draft Annual Financial Statements for Audit. A declaration must be attached to the relevant financial statements and signed by the Mayor and one other Councillor as well as the General Manager and Responsible Accounting Officer. The purpose sought by the Act is an acceptance of responsibility by the Council's elected members for its published annual financial statements.

Following this resolution, Council will then await the receipt of the Auditor’s Report and then publicly advertise that the Audited Financial Statements are available for inspection and comment by members of the public.

The Executive Manager, Financial Waverley has prepared and attached a set of Draft Annual Financial Statements. He now advises Council that the listed recommendations may be considered by the Council. The Draft Annual Financial Statements incorporate the:

• General Purpose Income Statement, • General Purpose Statement of Comprehensive Income, • General Purpose Balance Sheet, • General Purpose Statement of Changes in Equity and the • General Purpose Statement of Cash Flows for the financial year ended 30 June 2015, • Special Purpose Income Statement for Council’s Other Business Activities, • Special Purpose Balance Sheet for Council’s Other Business Activities.

2.1 Relevant Council Resolutions

There are no previous council resolutions on this matter.

3. Discussion

The 2014/15 Annual Financial Statements are to be referred to the Council’s auditor, Hill Rogers Spencer Steer, for audit.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: G5 - Waverley is financially sustainable with the revenue and resources required to support implementation of the community’s plans and to provide the infrastructure performance and services our community needs.

Page 2 70 Council Meeting 20 October 2015

Strategy: G5a - Promote and advocate the provision of financial reporting systems in an accurate, timely, transparent and honest manner to ensure sustainability of public assets and resources.

Deliverable: G5a – Financial advice and coordination to ensure Council meets overall budget performance targets provided: - Ensure year end accounts are completed.

5. Financial impact statement/Timeframe/Consultation

As proposed below.

Timeframe

The Local Government Act specifies the timeframe with which Council must complete its Annual Financial Statements, present them to the public and the Division of Local Government, Department of Premier and Cabinet. The following timetable will allow these processes to be satisfied and for the Annual Financial Statements to be adopted by Council.

20 October 2015 Council Meeting – Draft Annual Financial Statements presented to the Council requesting Council to refer the Financial Statements to the Auditors.

30 October 2015 Audited Financial Statements, including the Auditors Report, and the Financial Data Report to be submitted to the Division of Local Government, Department of Premier and Cabinet.

2 November 2014 Public notice of the meeting to be held on Tuesday, 17 November 2015, be given to the newspapers to be published in the week commencing 9 November 2015. The public notice will also advise that the Annual Financial Statements are available for inspection and that submissions will be received until 27 November 2015.

17 November 2015 Council Meeting – Council’s Auditors report on the Annual Financial Statements is formally presented to Council.

27 November 2015 Closing date for public submissions on the Annual Financial Statements. All submissions received must be referred to Council’s Auditor for consideration (Section 420(3)). Council may take such action as it considers appropriate with respect to any submissions received.

6. Conclusion

The Executive Manager, Financial Waverley, as the Responsible Accounting Officer advises that the Council financial position is satisfactory.

7. Attachment/s:

Draft 2014/15 Annual Financial Statements

Page 3 71 ANNUAL FINANCIAL STATEMENTS For the financial year ending 30 June 2015

Incorporating: General Purpose Financial Statements, Special Purpose, Financial Statements, Special Schedules DRAFT

72 DRAFT

Waverley Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2015

"We are united by a common passion for our beautiful home between the city and the sea."

73 Financial Statements 2015

Waverley Council

General Purpose Financial Statements for the financial year ended 30 June 2015

Contents Page

1. Understanding Council's Financial Statements 2

2. Statement by Councillors & Management 3

3. Primary Financial Statements:

- Income Statement 4 - Statement of Comprehensive Income 5 - Statement of Financial Position 6 - Statement of Changes in Equity 7 - Statement of Cash Flows 8

4. Notes to the Financial Statements 9

5. Independent Auditor's Reports:

- On the Financial Statements (Sect 417 [2]) 78 - On the Conduct of the Audit (Sect 417 [3]) 80

Overview DRAFT (i) These financial statements are General Purpose Financial Statements and cover the consolidated operations for Waverley Council.

(ii) Waverley Council is a body politic of NSW, Australia - being constituted as a Local Government area by proclamation and is duly empowered by the Local Government Act (LGA) 1993 of NSW.

Council's Statutory Charter is detailed in Paragraph 8 of the LGA and includes giving Council;

 the ability to provide goods, services & facilities, and to carry out activities appropriate to the current & future needs of the local community and of the wider public,  the responsibility for administering regulatory requirements under the LGA and  a role in the management, improvement and development of the resources in the area.

A description of the nature of Council's operations and its principal activities are provided in Note 2(b).

(iii) All figures presented in these financial statements are presented in Australian Currency.

(iv) These financial statements were authorised for issue by the Council on dd/mm/yy. Council has the power to amend and reissue these financial statements.

page74 1

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Understanding Council's Financial Statements

Introduction 5. The Statement of Cash Flows

Indicates where Council's cash came from and Each year, individual Local Governments across where it was spent. NSW are required to present a set of audited financial statements to their Council & Community. This statement also displays Council's original adopted budget to provide a comparison between What you will find in the Statements what was projected and what actually occurred.

The financial statements set out the financial About the Notes to the Financial Statements performance, financial position & cash flows of Council for the financial year ended 30 June 2015. The Notes to the financial statements provide greater detail and additional information on the 5 primary The format of the financial statements is standard financial statements. across all NSW Councils and complies with both the accounting & reporting requirements of Australian Accounting Standards and requirements as set About the Auditor's Reports down by the Office of Local Government. Council's financial statements are required to be audited by external accountants (that generally About the Councillor/Management Statement specialize in Local Government).

The financial statements must be certified by Senior In NSW, the Auditor provides 2 audit reports: staff as "presenting fairly" the Council's financial results for the year, and are required to be adopted 1. An opinion on whether the financial statements by Council - ensuring both responsibility for & present fairly the Council's financial performance ownership of the financial statements. & position, &

About the Primary Financial Statements 2. Their observations on the conduct of the Audit including commentary on the Council's financial The financial statements incorporate 5 "primary" performance & financial position. financial statements: DRAFT Who uses the Financial Statements ? 1. The Income Statement

Summarises Council's financial performance for the The financial statements are publicly available year, listing all income & expenses. documents & must be presented at a Council meeting between 7 days & 5 weeks after the date of This statement also displays Council's original the Audit Report. adopted budget to provide a comparison between what was projected and what actually occurred. Submissions from the public can be made to Council up to 7 days subsequent to the public presentation of 2. The Statement of Comprehensive Income the financial statements.

Primarily records changes in the fair values of Council is required to forward an audited set of Council's Infrastructure, Property, Plant & Equipment. financial statements to the Office of Local Government. 3. The Statement of Financial Position

A 30 June snapshot of Council's financial position More information indicating its Assets, Liabilities & “Net Wealth”. A review of Council's financial performance and 4. The Statement of Changes in Equity position for the 14/15 financial year can be found at The overall change for the year (in dollars) of Note 28 of the financial statements. Council's "Net Wealth".

page 2 75 Financial Statements 2015

Waverley Council

General Purpose Financial Statements for the financial year ended 30 June 2015

Statement by Councillors and Management made pursuant to Section 413(2)(c) of the Local Government Act 1993 (as amended)

The attached General Purpose Financial Statements have been prepared in accordance with:

 The Local Government Act 1993 (as amended) and the Regulations made thereunder,

 The Australian Accounting Standards and professional pronouncements, and

 The Local Government Code of Accounting Practice and Financial Reporting.

To the best of our knowledge and belief, these Financial Statements:

 present fairly the Council’s operating result and financial position for the year, and

 accords with Council’s accounting and other records.

We are not aware of any matter that would render the Reports false or misleading in any way.

Signed in accordance with a resolution of Council made on 20 October 2015. DRAFT

Sally Betts Name required…(via parameters tab) MAYOR COUNCILLOR

Athanasios (Arthur) Kyron Francesco Rombola GENERAL MANAGER RESPONSIBLE ACCOUNTING OFFICER

page76 3 Financial Statements 2015

Waverley Council

Income Statement for the financial year ended 30 June 2015

Budget 1 Actual Actual 2015 $ '000 Notes 2015 2014

Income from Continuing Operations Revenue: 54,415 Rates & Annual Charges 3a 54,467 52,867 35,239 User Charges & Fees 3b 32,705 31,977 3,080 Interest & Investment Revenue 3c 2,890 2,637 18,087 Other Revenues 3d 26,059 18,946 6,810 Grants & Contributions provided for Operating Purposes 3e,f 8,225 6,786 2 16,467 Grants & Contributions provided for Capital Purposes 3e,f 6,945 9,865 Other Income: 82,413 Net gains from the disposal of assets 5 48,730 - Net Share of interests in Joint Ventures & - Associates using the equity method 19 - -

216,511 Total Income from Continuing Operations 180,021 123,078

Expenses from Continuing Operations 57,315 Employee Benefits & On-Costs 4a 56,269 54,229 240 Borrowing Costs 4b 153 189 21,981 Materials & Contracts 4c 24,884 17,974 17,796 Depreciation & Amortisation 4d 17,876 17,898 - Impairment 4d - - 19,838 Other Expenses 4e 21,140 21,175 - Net Losses from the Disposal of Assets 5 - 1,561

117,170 Total Expenses from Continuing Operations 120,322 113,026 99,341 Operating Result fromDRAFT Continuing Operations 59,699 10,052 Discontinued Operations

- Net Profit/(Loss) from Discontinued Operations 24 - -

99,341 Net Operating Result for the Year 59,699 10,052

99,341 Net Operating Result attributable to Council 59,699 10,052 - Net Operating Result attributable to Non-controlling Interests - -

Net Operating Result for the year before Grants and 82,874 Contributions provided for Capital Purposes 52,754 187

1 Original Budget as approved by Council - refer Note 16 2 Financial Assistance Grants for 13/14 were lower reflecting one off timing differences due to a change in how the grant was paid in prior years - refer Note 3 (e)

This Statement should be read in conjunction with the accompanying Notes. page77 4 Financial Statements 2015

Waverley Council

Statement of Comprehensive Income for the financial year ended 30 June 2015

Actual Actual $ '000 Notes 2015 2014

Net Operating Result for the year (as per Income statement) 59,699 10,052

Other Comprehensive Income:

Amounts which will not be reclassified subsequently to the Operating Result Gain (loss) on revaluation of I,PP&E 20b (ii) 61,199 - Total Items which will not be reclassified subsequently to the Operating Result 61,199 -

Amounts which will be reclassified subsequently to the Operating Result when specific conditions are met Nil

Total Other Comprehensive Income for the year 61,199 -

Total Comprehensive Income for the Year 120,898 10,052

Total Comprehensive Income attributable to Council 120,898 10,052 Total Comprehensive Income attributable to Non-controlling Interests - - DRAFT

This Statement should be read in conjunction with the accompanying Notes. page78 5 Financial Statements 2015

Waverley Council

Statement of Financial Position as at 30 June 2015

Actual Actual $ '000 Notes 2015 2014

ASSETS Current Assets Cash & Cash Equivalents 6a 17,660 18,573 Investments 6b 73,511 33,640 Receivables 7 19,157 7,809 Inventories 8 - 221 Other 8 646 672 Non-current assets classified as "held for sale" 22 - 34,685 Total Current Assets 110,974 95,600

Non-Current Assets Investments 6b 39,000 4,800 Receivables 7 976 1,732 Inventories 8 - - Infrastructure, Property, Plant & Equipment 9 760,235 705,588 Investments accounted for using the equity method 19 - - Investment Property 14 133,925 124,200 Intangible Assets 25 - - Total Non-Current Assets 934,136 836,320 TOTAL ASSETS 1,045,110 931,920

LIABILITIES Current Liabilities Payables 10 16,777 21,076 Borrowings 10 836 1,117 Provisions 10 15,693 17,667 Total Current Liabilities DRAFT 33,306 39,860

Non-Current Liabilities Payables 10 - - Borrowings 10 1,081 1,918 Provisions 10 225 542 Total Non-Current Liabilities 1,306 2,460 TOTAL LIABILITIES 34,612 42,320 Net Assets 1,010,498 889,600

EQUITY Retained Earnings 20 656,155 596,414 Revaluation Reserves 20 354,343 293,186 Council Equity Interest 1,010,498 889,600 Non-controlling Equity Interests - - Total Equity 1,010,498 889,600

This Statement should be read in conjunction with the accompanying Notes. page79 6 Financial Statements 2015

Waverley Council

Statement of Changes in Equity for the financial year ended 30 June 2015

Non- Retained Reserves Council controlling Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity

2015 Opening Balance (as per Last Year's Audited Accounts) 596,004 293,186 889,190 - 889,190 a. Correction of Prior Period Errors 20 (c) 410 - 410 - 410 b. Changes in Accounting Policies (prior year effects) 20 (d) - - - - - Revised Opening Balance (as at 1/7/14) 596,414 293,186 889,600 - 889,600 c. Net Operating Result for the Year 59,699 - 59,699 - 59,699 d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve 20b (ii) - 61,199 61,199 - 61,199 - Revaluations: Other Reserves 20b (ii) ------Transfers to Income Statement 20b (ii) ------Impairment (loss) reversal relating to I,PP&E 20b (ii) - - - - - Other Comprehensive Income - 61,199 61,199 - 61,199

Total Comprehensive Income (c&d) 59,699 61,199 120,898 - 120,898 e. Distributions to/(Contributions from) Non-controlling Interests - - - - - f. Transfers between Equity 42 (42) - - -

Equity - Balance at end of the reporting period 656,155 354,343 1,010,498 - 1,010,498

Non- Retained Reserves Council controlling Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity

2014 Opening Balance (as per Last Year's Audited Accounts)DRAFT 585,069 294,069 879,138 - 879,138 a. Correction of Prior Period Errors 20 (c) 410 - 410 - 410 b. Changes in Accounting Policies (prior year effects) 20 (d) - - - - - Revised Opening Balance (as at 1/7/13) 585,479 294,069 879,548 - 879,548 c. Net Operating Result for the Year 10,052 - 10,052 - 10,052 d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve 20b (ii) ------Revaluations: Other Reserves 20b (ii) ------Transfers to Income Statement 20b (ii) ------Impairment (loss) reversal relating to I,PP&E 20b (ii) - - - - - Other Comprehensive Income - - - - -

Total Comprehensive Income (c&d) 10,052 - 10,052 - 10,052 e. Distributions to/(Contributions from) Non-controlling Interests - - - - - f. Transfers between Equity 883 (883) - - -

Equity - Balance at end of the reporting period 596,414 293,186 889,600 - 889,600

This Statement should be read in conjunction with the accompanying Notes. page80 7 Financial Statements 2015

Waverley Council

Statement of Cash Flows for the financial year ended 30 June 2015

Budget Actual Actual 2015 $ '000 Notes 2015 2014

Cash Flows from Operating Activities Receipts: 54,480 Rates & Annual Charges 54,510 52,900 35,248 User Charges & Fees 35,340 34,409 3,018 Investment & Interest Revenue Received 2,131 2,391 23,041 Grants & Contributions 14,159 11,174 - Bonds, Deposits & Retention amounts received - 8,234 18,069 Other 22,931 18,751 Payments: (55,632) Employee Benefits & On-Costs (58,419) (55,576) (24,851) Materials & Contracts (23,383) (19,998) (209) Borrowing Costs (147) (214) - Bonds, Deposits & Retention amounts refunded (8,116) (248) (19,598) Other (26,309) (21,573) 33,566 Net Cash provided (or used in) Operating Activities 11b 12,697 30,250

Cash Flows from Investing Activities Receipts: 775 Sale of Investment Securities 77,800 66,150 82,413 Sale of Infrastructure, Property, Plant & Equipment 83,149 167 - Deferred Debtors Receipts 32 23 Payments: (75,533) Purchase of Investment Securities (151,617) (62,034) - Purchase of Investment Property (1) - (48,828) Purchase of Infrastructure, Property, Plant & Equipment (21,855) (24,093) (41,173) Net Cash provided (or usedDRAFT in) Investing Activities (12,492) (19,787) Cash Flows from Financing Activities Receipts: 7,587 Proceeds from Borrowings & Advances - - Payments: (1,237) Repayment of Borrowings & Advances (1,118) (1,252) 6,350 Net Cash Flow provided (used in) Financing Activities (1,118) (1,252)

(1,257) Net Increase/(Decrease) in Cash & Cash Equivalents (913) 9,211

7,574 plus: Cash & Cash Equivalents - beginning of year 11a 18,573 9,362

6,317 Cash & Cash Equivalents - end of the year 11a 17,660 18,573

Additional Information:

plus: Investments on hand - end of year 6b 112,511 38,440

Total Cash, Cash Equivalents & Investments 130,171 57,013

Please refer to Note 11 for additional cash flow information. This Statement should be read in conjunction with the accompanying Notes. page81 8 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Contents of the Notes accompanying the Financial Statements

Note Details Page

1 Summary of Significant Accounting Policies 10 2(a) Council Functions / Activities - Financial Information 27 2(b) Council Functions / Activities - Component Descriptions 28 3 Income from Continuing Operations 31 4 Expenses from Continuing Operations 35 5 Gains or Losses from the Disposal of Assets 38 6(a) Cash & Cash Equivalent Assets 39 6(b) Investments 39 6(c) Restricted Cash, Cash Equivalents & Investments - Details 41 7 Receivables 43 8 Inventories and Other Assets 44 9(a) Infrastructure, Property, Plant & Equipment 45 9(b) Externally Restricted Infrastructure, Property, Plant and Equipment 46 9(c) Infrastructure, Property, Plant and Equipment - Current Year Impairments 46 n/a 10(a) Payables, Borrowings and Provisions 47 10(b) Description of (and movements in) Provisions 48 11 Statement of Cash Flows - Additional Information 49 12 Commitments for Expenditure 51 13 Statement of Performance Measures: 13a (i) Local Government Industry Indicators (Consolidated) 52 14 Investment Properties 53 15 Financial Risk Management 54 16 Material Budget Variations 58 17 Statement of Developer Contributions 60 18 Contingencies and Other Liabilities/Assets not recognised 61 19 Interests in Other Entities DRAFT 63 n/a 20 Equity - Retained Earnings and Revaluation Reserves 63

21 Financial Result & Financial Position by Fund 64 n/a 22 "Held for Sale" Non Current Assets & Disposal Groups 65 23 Events occurring after the Reporting Date 66 n/a 24 Discontinued Operations 66 n/a 25 Intangible Assets 66 n/a 26 Reinstatement, Rehabilitation and Restoration Liabilities 66 n/a 27 Fair Value Measurement 67

Additional Council Disclosures

28 Financial Review 76 29 Council Information and Contact Details 77

n/a - not applicable

page82 9

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

The principal accounting policies adopted by Council Under the Local Government Act (LGA), Regulations in the preparation of these consolidated financial and Local Government Code of Accounting Practice statements are set out below in order to assist in its & Financial Reporting, it should be noted that general understanding. Councils in NSW only have a requirement to comply with AASBs. Under Australian Accounting Standards (AASBs), accounting policies are defined as those specific (iii) New and amended standards adopted by principles, bases, conventions, rules and practices Council applied by a reporting entity (in this case Council) in preparing and presenting its financial statements. There were no accounting standards that became mandatory this year which materially impacted on Council’s financial statements. (a) Basis of preparation (iv) Early adoption of Accounting Standards (i) Background Council has not elected to apply any These financial statements are general purpose pronouncements before their operative date in the financial statements which have been prepared in annual reporting period beginning 1 July 2014. accordance with; Refer further to paragraph (ab) relating to a summary . Australian Accounting Standards and Australian of the effects of Standards with future operative Accounting Interpretations issued by the dates Australian Accounting Standards Board, (v) Basis of Accounting . the Local Government Act (1993) & Regulation, and These financial statements have been prepared under the historical cost convention except for: . the Local Government Code of Accounting Practice and Financial Reporting. (i) certain financial assets and liabilities at fair value through profit or loss and available-for- For the purpose of preparing these financial sale financial assets which are all valued at fair statements, Council has been deemed DRAFTto be a not- value, for-profit entity. (ii) the write down of any Asset on the basis of (ii) Compliance with International Financial Impairment (if warranted) and Reporting Standards (IFRSs) (iii) certain classes of non current assets (eg. Because AASBs are sector neutral, some standards Infrastructure, Property, Plant & Equipment and either: Investment Property) that are accounted for at fair valuation. (a) have local Australian content and prescription that is specific to the Not-For- The accrual basis of accounting has also been Profit sector (including Local Government) applied in their preparation. which are not in compliance with IFRS’s, or (vi) Changes in Accounting Policies (b) specifically exclude application by Not for Profit entities. Council’s accounting policies have been consistently applied to all the years presented, unless otherwise Accordingly in preparing these financial statements stated. and accompanying notes, Council has been unable to comply fully with International Accounting There have also been no changes in accounting Standards, but has complied fully with Australian policies when compared with previous financial Accounting Standards. statements unless otherwise stated [refer Note 20(d)].

page 10 83

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

(vii) Critical Accounting Estimates criteria have been met for each of the Council’s activities as described below. The preparation of financial statements requires the use of certain critical accounting estimates (in Council bases any estimates on historical results, conformity with AASBs). taking into consideration the type of customer, the type of transaction and the specifics of each Accordingly this requires management to exercise its arrangement. judgement in the process of applying the Council's Revenue is measured at the fair value of the accounting policies. consideration received or receivable.

Estimates and judgements are continually evaluated Revenue is measured on major income categories as and are based on historical experience and other follows: factors, including expectations of future events that may have a financial impact on Council and that are Rates, Annual Charges, Grants and Contributions believed to be reasonable under the circumstances. Rates, annual charges, grants and contributions Critical accounting estimates and assumptions (including developer contributions) are recognised as revenues when the Council obtains control over the Council makes estimates and assumptions assets comprising these receipts. concerning the future. Control over assets acquired from rates and annual The resulting accounting estimates will, by definition, charges is obtained at the commencement of the seldom equal the related actual results. rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of The estimates and assumptions that have a the rates. significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within A provision for the impairment on rates receivables the next financial year are set out below: has not been established as unpaid rates represent a charge against the rateable property that will be (i) Estimated fair values of investment properties recovered when the property is next sold.

(ii) Estimated fair values of infrastructure,DRAFT property, Control over granted assets is normally obtained plant and equipment. upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and is (iii) Estimated remediation provisions. valued at their fair value at the date of transfer.

Critical judgements in applying Council's Revenue from Contributions is recognised when the accounting policies Council either obtains control of the contribution or the right to receive it, (i) it is probable that the (i) Impairment of Receivables - Council has made economic benefits comprising the contribution will a significant judgement about the impairment of flow to the Council and (ii) the amount of the a number of its receivables in Note 7. contribution can be measured reliably.

(ii) Projected Section 94 Commitments - Council Where grants or contributions recognised as has used significant judgement in determining revenues during the financial year were obtained on future Section 94 income and expenditure in condition that they be expended in a particular Note 17. manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in Note (b) Revenue recognition 3(g).

Council recognises revenue when the amount of Note 3(g) also discloses the amount of unused grant revenue can be reliably measured, it is probable that or contribution from prior years that was expended future economic benefits will flow to it and specific on Council’s operations during the current year.

page 11 84

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

The Council has obligations to provide facilities from Dividend Income contribution revenues levied on developers under the provisions of S94 of the EPA Act 1979. Revenue is recognised when the Council’s right to receive the payment is established, which is Whilst Council generally incorporates these amounts generally when shareholders approve the dividend. as part of a Development Consents Order, such developer contributions are only recognised as Other Income income upon their physical receipt by Council, due to the possibility that individual Development Consents Other income is recorded when the payment is due, may not be acted upon by the applicant and the value of the payment is notified or the payment is accordingly would not be payable to Council. received, whichever occurs first.

Developer contributions may only be expended for the purposes for which the contributions were (c) Principles of Consolidation required but the Council may apply contributions according to the priorities established in work These financial statements incorporate (i) the assets schedules. and liabilities of Council and any entities (or operations) that it controls (as at 30 June 2015) and A detailed Note relating to developer contributions (ii) all the related operating results (for the financial can be found at Note 17. year ended the 30th June 2015).

User Charges, Fees and Other Income Detailed information relating to the entities that Council Controls can be found at Note 19 (a). User charges, fees and other income (including parking fees and fines) are recognised as revenue In the process of reporting on Council’s activities as a when the service has been provided, the payment is single unit, all inter-entity year end balances and received, or when the penalty has been applied, reporting period transactions have been eliminated in whichever first occurs. full between Council and its controlled entities.

A provision for the impairment of these receivables (i) The Consolidated Fund is recognised when collection in full is no longer probable. DRAFTIn accordance with the provisions of Section 409(1) of the LGA 1993, all money and property received by A liability is recognised in respect of revenue that is Council is held in the Council’s Consolidated Fund reciprocal in nature to the extent that the requisite unless it is required to be held in the Council’s Trust service has not been provided as at balance date. Fund.

Sale of Infrastructure, Property, Plant and The Consolidated Fund and other entities through Equipment which the Council controls resources to carry on its functions have been included in the financial The profit or loss on sale of an asset is determined statements forming part of this report. when control of the asset has irrevocably passed to the buyer. The following entities have been included as part of the Consolidated Fund: Interest and Rents . General Purpose Operations Rental income is accounted for on a straight-line basis over the lease term. (ii) The Trust Fund

Interest Income from Cash & Investments is In accordance with the provisions of Section 411 of accounted for using the effective interest rate at the the Local Government Act 1993 (as amended), a date that interest is earned. separate and distinct Trust Fund is maintained to account for all money and property received by the Council in trust which must be applied only for the

page 12 85

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

purposes of or in accordance with the trusts relating Property, plant and equipment acquired under to those monies. finance leases is depreciated over the shorter of each leased asset’s useful life and the lease term. Trust monies and property subject to Council’s control have been included in these statements. Operating Leases

Trust monies and property held by Council but not Leases in which a significant portion of the risks and subject to the control of Council, have been rewards of ownership are retained by the lessor are excluded from these statements. classified as operating leases.

A separate statement of monies held in the Trust Payments made under operating leases (net of any Fund is available for inspection at the Council office incentives received from the lessor) are charged to by any person free of charge. the income statement on a straight-line basis over the period of the lease. (iii) Joint Arrangements Lease income from operating leases is recognised in Council has no interest in any Joint Arrangements. income on a straight-line basis over the lease term.

(iv) Associates (e) Cash and Cash Equivalents Council has no interest in any Associates. For Statement of Cash Flows (and Statement of (v) County Councils Financial Position) presentation purposes, cash and cash equivalents includes; Council is not a member of any County Councils. . cash on hand,

(d) Leases . deposits held at call with financial institutions,

. All Leases entered into by Council are reviewed and other short-term, highly liquid investments with classified on inception date as either a Finance original maturities of three months or less that Lease or an Operating Lease. DRAFTare readily convertible to known amounts of cash and which are subject to an insignificant risk of

changes in value, and Finance Leases . bank overdrafts. Leases of property, plant and equipment where the Council has substantially all the risks and rewards of Bank overdrafts are shown within borrowings in ownership are classified as finance leases. current liabilities on the balance sheet but are incorporated into Cash & Cash Equivalents for Finance leases are capitalised at the lease’s presentation of the Cash Flow Statement. inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. (f) Investments and Other Financial Assets

The corresponding rental obligations, net of finance Council (in accordance with AASB 139) classifies charges, are included in borrowings. each of its investments into one of the following categories for measurement purposes: Each lease payment is allocated between the liability outstanding and the recognition of a finance charge. . financial assets at fair value through profit or

loss, The interest element of the finance charge is costed to the income statement over the lease period so as . loans and receivables, to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

page 13 86

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

. held-to-maturity investments, and Held-to-maturity financial assets are included in non- current assets, except for those with maturities less . available-for-sale financial assets. than 12 months from the reporting date, which are classified as current assets. Each classification depends on the purpose/intention for which the investment was acquired & at the time (iv) Available-for-sale financial assets it was acquired. Available-for-sale financial assets are non-derivatives Management determines each Investment that are either designated in this category or not classification at the time of initial recognition and reclassified in any of the other categories. evaluates this designation at each reporting date. Investments must be designated as available-for-sale (i) Financial assets at fair value through profit if they do not have fixed maturities and fixed or or loss determinable payments and management intends to hold them for the medium to long term. Financial assets at fair value through profit or loss include financial assets that are “held for trading”. Accordingly, this classification principally comprises marketable equity securities, but can include all types A financial asset is classified in the “held for trading” of financial assets that could otherwise be classified category if it is acquired principally for the purpose of in one of the other investment categories. selling in the short term. They are generally included in non-current assets Assets in this category are primarily classified as unless management intends to dispose of the current assets as they are primarily held for trading investment within 12 months of the balance sheet &/or are expected to be realised within 12 months of date or the term to maturity from the reporting date is the balance sheet date. less than 12 months.

(ii) Loans and receivables Financial Assets – Reclassification

Loans and receivables are non derivative financial Council may choose to reclassify a non-derivative assets with fixed or determinable payments that are trading financial asset out of the held-for-trading not quoted in an active market. DRAFTcategory if the financial asset is no longer held for the purpose of selling it in the near term. They arise when the Council provides money, goods or services directly to a debtor with no intention (or in Financial assets other than loans and receivables are some cases ability) of selling the resulting permitted to be reclassified out of the held-for-trading receivable. category only in rare circumstances arising from a single event that is unusual and highly unlikely to They are included in current assets, except for those recur in the near term. with maturities greater than 12 months after the balance sheet date which are classified as non- Council may also choose to reclassify financial current assets. assets that would meet the definition of loans and receivables out of the held-for-trading or available- (iii) Held-to-maturity investments for-sale categories if it has the intention and ability to hold these financial assets for the foreseeable future Held-to-maturity investments are non-derivative or until maturity at the date of reclassification. financial assets with fixed or determinable payments and fixed maturities that the Council’s management Reclassifications are made at fair value as of the has the positive intention and ability to hold to reclassification date. Fair value becomes the new maturity. cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded In contrast to the “Loans & Receivables” before reclassification date are subsequently made. classification, these investments are generally quoted in an active market.

page 14 87

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

Effective interest rates for financial assets Impairment reclassified to loans and receivables and held-to- maturity categories are determined at the Council assesses at each balance date whether reclassification date. Further increases in estimates there is objective evidence that a financial asset or of cash flows adjust effective interest rates group of financial assets is impaired. prospectively. A financial asset or a group of financial assets is General Accounting & Measurement of Financial impaired and impairment losses are incurred only if Instruments: there is objective evidence of impairment as a result of one or more events that occurred after the initial (i) Initial Recognition recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated Investments are initially recognised (and measured) future cash flows of the financial asset or group of at fair value, plus in the case of investments not at financial assets that can be reliably estimated. “fair value through profit or loss”, directly attributable transactions costs In the case of equity securities classified as Purchases and sales of investments are recognised available-for-sale, a significant or prolonged decline on trade-date - the date on which the Council in the fair value of a security below its cost is commits to purchase or sell the asset. considered in determining whether the security is impaired. Financial assets are derecognised when the rights to receive cash flows from the financial assets have If any such evidence exists for available-for-sale expired or have been transferred and the Council financial assets, the cumulative loss - measured as has transferred substantially all the risks and the difference between the acquisition cost and the rewards of ownership. current fair value, less any impairment loss on that financial asset previously recognised in profit and (ii) Subsequent Measurement loss - is removed from equity and recognised in the income statement. Available-for-sale financial assets and financial assets at fair value through profit and loss are Impairment losses recognised in the income subsequently carried at fair value. DRAFTstatement on equity instruments are not reversed through the income statement. Loans and receivables and held-to-maturity investments are carried at amortised cost using the If there is evidence of impairment for any of Council’s effective interest method. financial assets carried at amortised cost (eg. loans and receivables), the amount of the loss is measured Realised and unrealised gains and losses arising as the difference between the asset’s carrying from changes in the fair value of the financial assets amount and the present value of estimated future classified as “fair value through profit or loss” cash flows (excluding future credit losses that have category are included in the income statement in the not been incurred) discounted at the financial asset’s period in which they arise. original effective interest rate.

Unrealised gains and losses arising from changes in The carrying amount of the asset is reduced and the the fair value of non monetary securities classified amount of the loss is recognised in profit or loss. If a as "available-for-sale" are recognised in equity in loan or held-to-maturity investment has a variable the available-for-sale investments revaluation interest rate, the discount rate for measuring any reserve. impairment loss is the current effective interest rate determined under the contract. When securities classified as "available-for-sale" are sold or impaired, the accumulated fair value As a practical expedient, the group may measure adjustments are included in the income statement as impairment on the basis of an instrument’s fair value gains and losses from investment securities. using an observable market price.

page 15 88

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

(iii) Types of Investments If the market for a financial asset is not active (and for unlisted securities), the Council establishes fair Council has an approved Investment Policy in order value by using valuation techniques. to undertake its investment of money in accordance with (and to comply with) Section 625 of the Local These include reference to the fair values of recent Government Act and S212 of the LG (General) arm’s length transactions, involving the same Regulation 2005. instruments or other instruments that are substantially the same, discounted cash flow Investments are placed and managed in accordance analysis, and option pricing models refined to reflect with the Policy and having particular regard to the issuer’s specific circumstances. authorised investments prescribed under the Ministerial Local Government Investment Order. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to Council maintains its investment Policy in approximate their fair values. compliance with the Act and ensures that it or its representatives exercise care, diligence and skill that The fair value of financial liabilities for disclosure a prudent person would exercise in investing Council purposes is estimated by discounting the future funds. contractual cash flows at the current market interest rate that is available to the Council for similar Council amended its policy following revisions to the financial instruments. Ministerial Local Government Investment Order arising from the Cole Inquiry recommendations. Certain investments that Council holds are no longer (h) Receivables prescribed (eg. managed funds, CDOs, and equity linked notes), however they have been retained Receivables are initially recognised at fair value and under grandfathering provisions of the Order. These subsequently measured at amortised cost, less any will be disposed of when most financially provision for impairment. advantageous to Council. Receivables (excluding Rates & Annual Charges) are generally due for settlement no more than 30 days (g) Fair value estimation from the date of recognition. DRAFT The fair value of financial assets and financial The collectibility of receivables is reviewed on an liabilities must be estimated for recognition and ongoing basis. Debts which are known to be measurement or for disclosure purposes. uncollectible are written off in accordance with Council’s policy. The fair value of financial instruments traded in active markets is based on quoted market prices at A provision for impairment (ie. an allowance account) the balance sheet date. relating to receivables is established when there is objective evidence that the Council will not be able to The fair value of financial instruments that are not collect all amounts due according to the original traded in an active market is determined using terms of each receivable. valuation techniques. The amount of the provision is the difference Council uses a variety of methods and makes between the asset’s carrying amount and the present assumptions that are based on market conditions value of estimated future cash flows, discounted at existing at each balance date. the effective interest rate.

Quoted market prices or dealer quotes for similar Impairment losses are recognised in the Income instruments are used for long-term debt instruments Statement within other expenses. held. When a receivable for which an impairment allowance had been recognised becomes

page 16 89

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

uncollectible in a subsequent period, it is written off Borrowing costs incurred while active development is against the allowance account. interrupted for extended periods are recognised as expenses. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement. (j) Infrastructure, Property, Plant and

Equipment (I,PP&E)

(i) Inventories Acquisition of assets

Raw Materials and Stores, Work in Progress and Council’s non current assets are continually revalued Finished Goods (over a 5 year period) in accordance with the fair valuation policy as mandated by the Office of Local Raw materials and stores, work in progress and Government. finished goods in respect of business undertakings are all stated at the lower of cost and net realisable At balance date, the following classes of I,PP&E value. were stated at their Fair Value;

Cost comprises direct materials, direct labour and an - Investment Properties – refer Note 1(p), appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on - Water and Sewerage Networks the basis of normal operating capacity. (Internal Valuation)

Costs are assigned to individual items of inventory - Operational Land (External Valuation) on the basis of weighted average costs. Net realisable value is the estimated selling price in - Buildings – Specialised/Non Specialised the ordinary course of business less the estimated (External Valuation) costs of completion and the estimated costs necessary to make the sale. - Plant and Equipment (as approximated by depreciated historical cost)

Inventories held in respect of non-business - Roads Assets incl. roads, bridges & footpaths undertakings have been valued at costDRAFT subject to (Internal Valuation) adjustment for loss of service potential. - Drainage Assets (Internal Valuation) Land Held for Resale/Capitalisation of Borrowing Costs - Bulk Earthworks (Internal Valuation)

Land held for resale is stated at the lower of cost - Community Land (Internal Valuation) and net realisable value. - Land Improvements (as approximated by depreciated historical cost) Cost is assigned by specific identification and includes the cost of acquisition, and development - Other Structures and borrowing costs during development. (as approximated by depreciated historical cost)

When development is completed borrowing costs - Other Assets and other holding charges are expensed as incurred. (as approximated by depreciated historical cost)

Borrowing costs included in the cost of land held for Initial Recognition resale are those costs that would have been avoided if the expenditure on the acquisition and On initial recognition, an assets cost is measured at development of the land had not been made. its fair value, plus all expenditure that is directly attributable to the acquisition.

page 17 90

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

Where settlement of any part of an asset’s cash with the latest indices provided in the NSW Office of consideration is deferred, the amounts payable in Water - Rates Reference Manual. the future are discounted to their present value as at the date of recognition (ie. date of exchange) of the For all other assets, Council assesses at each asset to arrive at fair value. reporting date whether there is any indication that a revalued asset’s carrying amount may differ The discount rate used is the Council’s incremental materially from that which would be determined if the borrowing rate, being the rate at which a similar asset were revalued at the reporting date. borrowing could be obtained from an independent financier under comparable terms and conditions. If any such indication exists, Council determines the asset’s fair value and revalues the asset to that Where infrastructure, property, plant and equipment amount. assets are acquired for no cost or for an amount other than cost, the assets are recognised in the Full revaluations are undertaken for all assets on a 5 financial statements at their fair value at acquisition year cycle. date - being the amount that the asset could have been exchanged between knowledgeable willing Capitalisation Thresholds parties in an arm’s length transaction. Items of infrastructure, property, plant and equipment Subsequent costs are not capitalised unless their cost of acquisition exceeds the following; Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, Land as appropriate, only when it is probable that future - council land 100% Capitalised economic benefits associated with the item will flow - open space 100% Capitalised - land under roads (purchases after 30/6/08) 100% Capitalised to Council and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Plant & Equipment income statement during the financial period in Office Furniture > $2,000 which they are incurred. Office Equipment > $2,000 Other Plant &Equipment > $2,000 Asset Revaluations (including Indexation)DRAFT

In accounting for Asset Revaluations relating to Buildings & Land Improvements Park Furniture & Equipment > $20,000 Infrastructure, Property, Plant & Equipment: Building . Increases in the combined carrying amounts of - construction/extensions 100% Capitalised asset classes arising on revaluation are credited - renovations > $50,000 to the asset revaluation reserve. Other Structures > $20,000 . To the extent that a net asset class increase reverses a decrease previously recognised via the profit or loss, then increase is first recognised Stormwater Assets in profit or loss. Drains & Culverts > $20,000 Other > $20,000

. Net decreases that reverse previous increases of

the same asset class are first charged against Transport Assets revaluation reserves directly in equity to the Road construction & reconstruction > $20,000 extent of the remaining reserve attributable to the Reseal/Re-sheet & major repairs: > $20,000 asset, with all other decreases charged to the Bridge construction & reconstruction > $20,000 Income statement.

Water and sewerage network assets are indexed Other Infrastructure Assets annually between full revaluations in accordance Swimming Pools > $10,000

page 18 91

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

Other Open Space/Recreational Assets > $10,000 - Other Infrastructure 15 to 50 years

Other Infrastructure > $10,000 All asset residual values and useful lives are reviewed and adjusted (if appropriate), at each Depreciation reporting date.

Depreciation on Council's infrastructure, property, An asset’s carrying amount is written down plant and equipment assets is calculated using the immediately to its recoverable amount if the asset’s straight line method in order to allocate an assets carrying amount is greater than its estimated cost (net of residual values) over its estimated useful recoverable amount – refer Note 1(s) on Asset life. Impairment.

Land is not depreciated. Disposal and De-recognition

Estimated useful lives for Council's I,PP&E include: An item of property, plant and equipment is derecognised upon disposal or when no further Plant & Equipment future economic benefits are expected from its use or - Office Equipment 5 to 10 years disposal. - Office furniture 10 to 20 years

- Computer Equipment 4 years - Vehicles & /Road Making equip. 5 to 8 years Any gain or loss arising on derecognition of the asset - Other plant and equipment 5 to 15 years (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in Council’s Income Statement in Other Equipment the year the asset is derecognised. - Playground equipment 5 to 15 years - Benches, seats etc 10 to 20 years

(k) Land Buildings - Buildings : Masonry 50 to 100 years Land (other than Land under Roads) is in - Buildings : Other 20 to 40 years accordance with Part 2 of Chapter 6 of the Local DRAFTGovernment Act (1993) classified as either Operational or Community. Stormwater Drainage - Drains 80 to 100 years This classification of Land is disclosed in Note 9(a). - Culverts 50 to 80 years

Transportation Assets (l) Land under roads - Sealed Roads : Surface 20 years - Sealed Roads : Structure 50 years Land under roads is land under roadways and road - Unsealed roads 20 years - Bridge : Concrete 100 years reserves including land under footpaths, nature strips - Bridge : Other 20 to 75 years and median strips.

- Road Pavements 60 years Council has elected not to recognise land under - Kerb, Gutter & Paths 40 years roads acquired before 1 July 2008 in accordance with AASB 1051.

Other Infrastructure Assets Land under roads acquired after 1 July 2008 is - Bulk earthworks Infinite recognised in accordance with AASB 116 – Property, Plant and Equipment.

- Swimming (Ocean) Pools 100 years - Other Open Space/ Recreational Assets 15 to 50 years

page 19 92

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

(m) Intangible Assets of which the fire fighting equipment has been purchased or constructed”. IT Development and Software At present, the accounting for such fire fighting Costs incurred in developing products or systems equipment is not treated in a consistent manner and costs incurred in acquiring software and across all Councils. licenses that will contribute to future period financial benefits through revenue generation and/or cost Until such time as discussions on this matter have reduction are capitalised to software and systems. concluded and the legislation changed, Council will Costs capitalised include external direct costs of continue to account for these assets as it has been materials and service, direct payroll and payroll doing in previous years, which is to incorporate the related costs of employees’ time spent on the assets, their values and depreciation charges within project. these financial statements

Amortisation is calculated on a straight line bases over periods generally ranging from 3 to 5 years. (p) Investment property

IT development costs include only those costs Investment property comprises land &/or buildings directly attributable to the development phase and that are principally held for long-term rental yields, are only recognised following completion of technical capital gains or both that is not occupied by Council. feasibility and where Council has an intention and ability to use the asset. Investment property is carried at fair value, representing an open-market value determined annually by external valuers. (n) Crown Reserves Annual changes in the fair value of Investment Crown Reserves under Council’s care and control Properties are recorded in the Income Statement as are recognised as assets of the Council. part of “Other Income”.

While ownership of the reserves remains with the Full revaluations are carried out every three years Crown, Council retains operational control of the with an appropriate index utilised each year in reserves and is responsible for their DRAFTmaintenance between the full revaluations. and use in accordance with the specific purposes to which the reserves are dedicated. The last full revaluation for Council’s Investment Properties was dated 30/06/2013. Improvements on Crown Reserves are also recorded as assets, while maintenance costs incurred by Council and revenues relating the (q) Provisions for close down, restoration reserves are recognised within Council’s Income and for environmental clean up costs – Statement. including Tips and Quarries

Representations are currently being sought across Close down, Restoration and Remediation costs State and Local Government to develop a consistent include the dismantling and demolition of accounting treatment for Crown Reserves across infrastructure, the removal of residual materials and both tiers of government. the remediation of disturbed areas.

Estimated close down and restoration costs are (o) Rural Fire Service assets provided for in the accounting period when the obligation arising from the related disturbance Under section 119 of the Rural Fires Act 1997, “all occurs, whether this occurs during the development fire fighting equipment purchased or constructed or during the operation phase, based on the net wholly or from money to the credit of the Fund is to present value of estimated future costs. be vested in the council of the area for or on behalf

page 20 93

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

Provisions for close down and restoration costs do Movements in the environmental clean up provisions not include any additional obligations which are are presented as an operating cost, except for the expected to arise from future disturbance. unwind of the discount which is shown as a borrowing cost. Costs are estimated on the basis of a closure plan. Remediation procedures generally commence soon The cost estimates are calculated annually during after the time the damage, remediation process and the life of the operation to reflect known estimated remediation costs become known, but may developments, eg updated cost estimates and continue for many years depending on the nature of revisions to the estimated lives of operations, and the disturbance and the remediation techniques. are subject to formal review at regular intervals. As noted above, the ultimate cost of environmental Close down, Restoration and Remediation costs are remediation is uncertain and cost estimates can vary a normal consequence of tip and quarry operations, in response to many factors including changes to the and the majority of close down and restoration relevant legal requirements, the emergence of new expenditure is incurred at the end of the life of the restoration techniques or experience at other operations. locations.

Although the ultimate cost to be incurred is The expected timing of expenditure can also change, uncertain, Council estimates the respective costs for example in response to changes in quarry based on feasibility and engineering studies using reserves or production rates. current restoration standards and techniques. As a result there could be significant adjustments to The amortisation or ‘unwinding’ of the discount the provision for close down and restoration and applied in establishing the net present value of environmental clean up, which would affect future provisions is charged to the income statement in financial results. each accounting period. Specific Information relating to Council's provisions This amortisation of the discount is disclosed as a relating to Close down, Restoration and Remediation borrowing cost in Note 4(b). costs can be found at Note 26.

Other movements in the provisions for DRAFTClose down, Restoration and Remediation costs including those (r) Non-Current Assets (or Disposal Groups) resulting from new disturbance, updated cost “Held for Sale” & Discontinued estimates, changes to the estimated lives of Operations operations and revisions to discount rates are capitalised within property, plant and equipment. Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of These costs are then depreciated over the lives of either (i) their carrying amount and (ii) fair value less the assets to which they relate. costs to sell, if their carrying amount will be recovered principally through a sale transaction Where rehabilitation is conducted systematically rather than through continuing use. over the life of the operation, rather than at the time of closure, provision is made for the estimated The exception to this is plant and motor vehicles outstanding continuous rehabilitation work at each which are turned over on a regular basis. Plant and balance sheet date and the cost is charged to the motor vehicles are retained in Non Current Assets income statement. under the classification of Infrastructure, Property, Plant and Equipment - unless the assets are to be Provision is made for the estimated present value of traded in after 30 June and the replacement assets the costs of environmental clean up obligations were already purchased and accounted for as at 30 outstanding at the balance sheet date. June. These costs are charged to the income statement.

page 21 94

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

For any assets or disposal groups classified as Non- Goodwill & other Intangible Assets that have an Current Assets “held for sale”, an impairment loss is indefinite useful life and are not subject to recognised at any time when the assets carrying amortisation are tested annually for impairment. value is greater than its fair value less costs to sell.

Non-current assets “held for sale” are not (t) Payables depreciated or amortised while they are classified as “held for sale”. These amounts represent liabilities and include goods and services provided to the Council prior to Non-current assets classified as “held for sale” are the end of financial year which are unpaid. presented separately from the other assets in the balance sheet. The amounts for goods and services are unsecured and are usually paid within 30 days of recognition. A Discontinued Operation is a component of Council that has been disposed of or is classified as “held for sale” and that represents a separate major line of (u) Borrowings business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a Borrowings are initially recognised at fair value, net line of business or area of operations, or is a of transaction costs incurred. subsidiary acquired exclusively with a view to resale. Borrowings are subsequently measured at amortised The results of discontinued operations are presented cost. separately on the face of the income statement. Amortisation results in any difference between the proceeds (net of transaction costs) and the (s) Impairment of assets redemption amount being recognised in the Income Statement over the period of the borrowings using All Council's I,PP&E is subject to an annual the effective interest method. assessment of impairment. Borrowings are removed from the balance sheet Assets that are subject to amortisation are reviewed when the obligation specified in the contract is for impairment whenever events or DRAFTchanges in discharged, cancelled or expired. circumstances indicate that the carrying amount may not be recoverable. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer An impairment loss is recognised for the amount by settlement of the liability for at least 12 months after which the asset’s carrying amount exceeds its the balance sheet date. recoverable amount.

The recoverable amount is the higher of an asset’s (v) Borrowing costs fair value less costs to sell and value in use. Borrowing costs are expensed. Where an asset is not held principally for cash generating purposes (for example Infrastructure Assets) and would be replaced if the Council was (w) Provisions deprived of it then depreciated replacement cost is used as value in use, otherwise value in use is Provisions for legal claims, service warranties and estimated by using a discounted cash flow model. other like liabilities are recognised when:

Non-financial assets (other than goodwill) that . Council has a present legal or constructive suffered a prior period impairment are reviewed for obligation as a result of past events; possible reversal of the impairment at each reporting date.

page 22 95

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

. it is more likely than not that an outflow of Liabilities for non vesting sick leave are recognised at resources will be required to settle the obligation; the time when the leave is taken and measured at and the rates paid or payable, and accordingly no Liability has been recognised in these reports. . the amount has been reliably estimated. Wages & salaries, annual leave and vesting sick Provisions are not recognised for future operating leave are all classified as Current Liabilities. losses. (ii) Other Long Term Obligations Where there are a number of similar obligations, the likelihood that an outflow will be required in The liability for all long service and annual leave in settlement is determined by considering the class of respect of services provided by employees up to the obligations as a whole. reporting date (which is not expected to be wholly settled within the 12 months after the reporting A provision is recognised even if the likelihood of an period) are recognised in the provision for employee outflow with respect to any one item included in the benefits. same class of obligations may be small. These liabilities are measured at the present value of Provisions are measured at the present value of the expected future payments to be made using the management’s best estimate of the expenditure projected unit credit method. required to settle the present obligation at the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures The discount rate used to determine the present and periods of service. value reflects current market assessments of the time value of money and the risks specific to the Expected future payments are then discounted using liability. market yields at the reporting date based on national government bonds with terms to maturity and The increase in the provision due to the passage of currency that match as closely as possible the time is recognised as interest expense. estimated future cash outflows.

DRAFTDue to the nature of when and how Long Service (x) Employee benefits Leave can be taken, all Long Service Leave for employees with 4 or more years of service has been (i) Short Term Obligations classified as Current, as it has been deemed that Council does not have the unconditional right to defer Short term employee benefit obligations include settlement beyond 12 months – even though it is not liabilities for wages and salaries (including non- anticipated that all employees with more than 4 years monetary benefits), annual leave and vesting sick service (as at reporting date) will apply for and take leave expected to be wholly settled within the 12 their leave entitlements in the next 12 months. months after the reporting period. (iii) Retirement benefit obligations Leave liabilities are recognised in the provision for employee benefits in respect of employees’ services All employees of the Council are entitled to benefits up to the reporting date with other short term on retirement, disability or death. employee benefit obligations disclosed under payables. Council contributes to various defined benefit plans and defined contribution plans on behalf of its These provisions are measured at the amounts employees. expected to be paid when the liabilities are settled. Defined Benefit Plans All other short-term employee benefit obligations are presented as payables. A liability or asset in respect of defined benefit superannuation plans would ordinarily be recognised

page 23 96

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

in the balance sheet, and measured as the present The amount of additional contributions included in value of the defined benefit obligation at the the total employer contribution advised above is reporting date plus unrecognised actuarial gains $2,480,624. (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets at that The share of this deficit that can be broadly attributed date and any unrecognised past service cost. to Council is estimated to be in the order of $1,271,530 as at 30 June 2015. The present value of the defined benefit obligation is based on expected future payments which arise Council’s share of that deficiency cannot be from membership of the fund to the reporting date, accurately calculated as the Scheme is a mutual calculated annually by independent actuaries using arrangement where assets and liabilities are pooled the projected unit credit method. Consideration is together for all member councils. given to expected future wage and salary levels, experience of employee departures and periods of For this reason, no liability for the deficiency has service. been recognised in these financial statements.

However, when this information is not reliably Council has, however, disclosed a contingent liability available, Council can account for its obligations to in Note 18 to reflect the possible obligation that may defined benefit plans on the same basis as its arise should the Scheme require immediate payment obligations to defined contribution plans – i.e. as an to correct the deficiency. expense when they become payable. Defined Contribution Plans Council is party to an Industry Defined Benefit Plan under the Local Government Superannuation Contributions to Defined Contribution Plans are Scheme, named the “Local Government recognised as an expense as they become payable. Superannuation Scheme – Pool B” Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the This Scheme has been deemed to be a “multi future payments is available. employer fund” for the purposes of AASB 119. (iv) Employee Benefit On-Costs Sufficient information is not available to account for the Scheme as a defined benefit plan (inDRAFT accordance Council has recognised at year end the aggregate with AASB 119) because the assets to the scheme on-cost liabilities arising from employee benefits, and are pooled together for all Councils. in particular those on-cost liabilities that will arise when payment of current employee benefits is made The last valuation of the Scheme was performed by in future periods. Mar Martin Stevenson BSc, FIA, FIAA on 20 February 2013 and covers the period ended 30 June These amounts include Superannuation and Workers 2018. Compensation expenses which will be payable upon the future payment of certain Leave Liabilities However the position is monitored annually and the accrued as at 30/06/15. Actuary has estimated that as at 30 June 2015 the prior period deficit still exists. (y) Self insurance Effective from 1 July 2009, employers are required to contribute additional contributions to assist in Council does not self insure. extinguishing this deficit.

The amount of employer contributions to the defined benefit section of the Local Government (z) Allocation between current and Superannuation Scheme and recognised as an non-current assets & liabilities expense and disclosed as part of Superannuation Expenses at Note 4(a) for the year ending 30 June In the determination of whether an asset or liability is 2015 was $620,156. classified as current or non-current, consideration is

page 24 97

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

given to the time when each asset or liability is are exclusive of GST. Instead, the GST component expected to be settled. of investing and financing activity cash flows which are recoverable from or payable to the ATO are The asset or liability is classified as current if it is classified as operating cash flows. expected to be settled within the next 12 months, being the Council’s operational cycle. Commitments and contingencies are disclosed net of the amount of GST recoverable from (or payable to) Exceptions the ATO.

In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 (ab) New accounting standards and months (such as vested long service leave), the interpretations liability is classified as current even if not expected to be settled within the next 12 months. Certain new (or amended) accounting standards and interpretations have been published that are not In the case of inventories that are “held for trading”, mandatory for reporting periods ending 30 June these are also classified as current even if not 2015. expected to be realised in the next 12 months. Council has not adopted any of these standards early. (aa) Taxes Council’s assessment of the impact of these new The Council is exempt from both Commonwealth standards and interpretations is set out below. Income Tax and Capital Gains Tax. Apart from the AASB disclosures below, there are no Council does however have to comply with both other standards that are “not yet effective” which are Fringe Benefits Tax and Goods and Services Tax expected to have a material impact on Council in the (GST). current or future reporting periods and on foreseeable future transactions. Goods & Services Tax (GST)

Income, expenses and assets are all recognisedDRAFT net Applicable to Local Government: of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian AASB 9 - Financial Instruments (and associated Tax Office (ATO). amending standards)

In these circumstances the GST is recognised as AASB 9 replaces AASB 139 Financial Instruments: part of the cost of acquisition of the asset or as part Recognition and Measurement and has an effective of the revenue / expense. date for reporting periods beginning on or after 1 January 2018 (and must be applied retrospectively). Receivables and payables within the Balance Sheet are stated inclusive of any applicable GST. The overriding impact of AASB 9 is to change the requirements for the classification, measurement and The net amount of GST recoverable from or payable disclosures associated with financial assets. to the ATO is included as a current asset or current liability in the Balance Sheet. Under the new requirements the four current categories of financial assets stipulated in AASB 139 Operating cash flows within the Cash Flow will be replaced with two measurement categories: Statement are on a gross basis, ie. they are inclusive of GST where applicable. . fair value and

. amortised cost (where financial assets will only be Investing and Financing cash flows are treated on a able to be measured at amortised cost where very net basis (where recoverable form the ATO), ie. they specific conditions are met).

page 25 98

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 1. Summary of Significant Accounting Policies

AASB 15 - Revenue from contracts with (ac) Rounding of amounts customers and associated amending standards Unless otherwise indicated, amounts in the financial AASB 15 will introduce a five step process for statements have been rounded off to the nearest revenue recognition with the core principle of the thousand dollars. new Standard being that entities recognise revenue so as to depict the transfer of goods or services to customers in amounts that reflect the consideration (ad) Comparative Figures (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. To ensure comparability with the current reporting period’s figures, some comparative period line items The changes in revenue recognition requirements in and amounts may have been reclassified or AASB 15 may cause changes to accounting policies individually reported for the first time within these relating to the timing and amount of revenue financial statements and/or the notes. recorded in the financial statements as well as additional disclosures. (ae) Disclaimer The full impact of AASB 15 has not yet been ascertained or quantified. Nothing contained within these statements may be AASB 15 will replace AASB 118 which covers taken to be an admission of any liability to any contracts for goods and services and AASB 111 person under any circumstance. which covers construction contracts.

The effective date of this standard is for annual reporting periods beginning on or after 1 January 2017.

AASB 124 - Related Party Disclosures

From 1 July 2016, AASB 124 Related Party Disclosures will apply to Council. DRAFT This means that Council will be required to disclose information about related parties and Council transactions with those related parties.

Related parties will more than likely include the Mayor, Councillors and certain Council staff. In addition, the close family members of those people and any organisations that they control or are associated with will be classified as related parties (and fall under the related party reporting requirements).

Not applicable to Local Government per se;

None

page 26 99 Financial Statements 2015 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 2(a). Council Functions / Activities - Financial Information

$ '000 Income, Expenses and Assets have been directly attributed to the following Functions / Activities. Details of these Functions/Activities are provided in Note 2(b). Grants included in Total Assets held Income from Continuing Expenses from Continuing Operating Result from Income from (Current & Operations Operations Continuing Operations Continuing Non-current) Functions/Activities Operations Original Original Original Budget Actual Actual Budget Actual Actual Budget Actual Actual Actual Actual Actual Actual 2015 2015 2014 2015 2015 2014 2015 2015 2014 2015 2014 2015 2014 Asset Management Services 98,834 66,256 12,365 23,000 24,766 22,607 75,834 41,490 (10,242) 1,292 759 582,246 653,013 Beach Services, Maintenance & Safety 783 807 694 3,958 4,080 3,594 (3,175) (3,273) (2,900) 6 - - 60 Cemetery Services 1,238 1,675 1,350 1,268 1,422 1,249 (30) 253 101 - - 32,612 31,218 Child Care Services 6,769 7,355 6,800 6,441 6,770 6,400 328 585 400 3,529 3,117 6,826 6,875 Community Services 1,297 1,119 1,052 2,474 2,321 2,175 (1,177) (1,202) (1,123) 671 622 116,121 41,455 Corporate Support Services 47,093 47,552 44,806 9,558 12,296 9,605 37,535 35,256 35,201 1,723 930 104,057 20,026 Cultural Services 445 438 441 3,397 3,698 3,346 (2,952) (3,260) (2,905) - - - - Customer Services & Communication 15 7 11 1,157 1,333 1,257 (1,142) (1,326) (1,246) - - - 8 Development, Building & Health Services 8,283 8,772 6,972 9,941 10,684 9,249 (1,658) (1,912) (2,277) - 10 - - Emergency Management Services 39 - 29 192 158 132 (153) (158) (103) - - - - Environmental Services 716 563 658 2,269 2,590 1,589 (1,553) (2,027) (931) 323 354 - - Governance, Integrated Planning & DRAFT Community Engagement 1 28 2 4,748 5,297 4,609 (4,747) (5,269) (4,607) 2 93 - - Library Services 221 261 336 4,191 4,098 4,089 (3,970) (3,837) (3,753) 188 175 42,739 29,984 Parking Services 29,550 25,199 26,749 11,270 9,378 10,589 18,280 15,821 16,160 - 2 26,258 13,317 Parks Services & Maintenance 252 146 341 7,353 6,928 6,534 (7,101) (6,782) (6,193) 51 20 87,823 103,773 Place Management 772 570 801 658 448 549 114 122 252 - - - - Recreation Services 60 320 33 656 486 725 (596) (166) (692) 300 - - - Regulatory Services 1,775 111 1,928 1,295 1,408 1,566 480 (1,297) 362 - - - - Social & Affordable Housing 877 963 900 1,051 1,066 1,087 (174) (103) (187) - - 36,906 24,679 Traffic & Transport Services - 213 - 17 15 5 (17) 198 (5) 213 - - - Urban Open Space Maintenance & Accessibility 224 301 278 4,019 3,687 4,129 (3,795) (3,386) (3,851) - - - - Waste Services 17,267 17,365 16,532 18,257 17,393 17,941 (990) (28) (1,409) 111 110 9,522 7,512 Total Functions & Activities 216,511 180,021 123,078 117,170 120,322 113,026 99,341 59,699 10,052 8,409 6,192 1,045,110 100 931,920 Page 27 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 2(b). Council Functions / Activities - Component Descriptions

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Asset Management Services This service includes planning for renewal of assets, financial management and project delivery of works on vital infrastructure. The Service contributes to every aspect of Council's operations, to our ability to deliver our services cost effectively and to the community's social, environmental and economic well being.

Beach Services, Maintenance & Safety This service includes beach safety, beach maintenance and cleaning and also supports voluntary surf lifesaving clubs.

Cemetery Services This service currently includes interment of ashes and remains at two sites, Waverley and South Head. Waverley Cemetery is a fully operational Cemetery with sales in excess of $1million per annum.

Childcare Services Providing quality, affordable long day care and family day care for children aged 0-5 as well as parenting programs and counselling for families.

Community Services Council provides a range of community services within Waverley in addition to supporting a broad range of community organisations. Our services and support for other groups and agencies ensure that the community has access to relevant, accessible and affordable facilities, spaces, programs and activities.

Corporate Support Services This service includes a range of professional support services for financial planning and management, workforce planning, organisational development and performance management, business systems improvement, risk management and insurance,DRAFT procurement, telecommunications and IT and special projects to support the Executive in customer service and organisational review.

Cultural Services Council provides and supports a range of activities that celebrate and strengthen an appreciation or our cultural heritage and diversity.

Customer Services & Communication This area is responsible for ensuring that customer service is provided in a professional, friendly and timely way, and that our community is informed about Council's plans, initiatives, services and activities.

Development, Building & Health Services This service involves preparing new Local Environmental Plans, Development Control Plans and Planning Strategies relating to future land use planning and heritage conservation.

It also assesses and determines development applications in accordance with the EP&A Act and provides Council with a digital mapping service.

page101 28 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 2(b). Council Functions / Activities - Component Descriptions (continued)

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Emergency Management Services Waverley and Woollahra have a joint relationship in funding and supporting the local SES unit and it is a requirement under the NSW State Emergency Act.

Environmental Services This is a growing service area covering all aspects of the aquatic, biological and air enviroments. Its sub- services are specifically geared to meet the requirements of our Environmental Action Plan 2 (EAP2) adopted in February 2010. EAP2 is a key element of Waverley's resourcing strategy for Waverley Togethor 2.

Governance, Integrated Planning & Community Engagement This service is designed to ensure we can engage with our community in an open and responsive way, discussing and making decisions with them about their future on the basis of sound and balanced judgement and policies. It also ensures that we can be properly held to account for planning decisions and for the efficiency and effectiveness of the services we deliver.

Library Services The Library offers information, recreation and entertainment as well as opportunities for people to train, learn or simply interact with neighbours and friends. The Library is a major education and community capacity building resource.

Parking Services This service provides substantial community safety and amenity by ensuring that our very limited supply of public parking opportunities (limited relative to demand) is shared fairly by all. This service is more effectively delivered if its implemented in close conjunction with Environmental Services and Traffic and Transport Services. DRAFT Parks Services & Maintenance This service maintains and cares for Council's 99 parks. The park and reserves are divided into a numberof categories including regional parks, coastal reserves, small parks, pocket parks, linkages and remnant vegetation.

Place Management Bondi Beach and Bondi Junction are important places for Waverley residents and for the wider Sydney community. They contain a world famous beach and one of Sydney's most vibrant retail precincts and play a significant role in delivering recreational and commercial experiences to the region. A Place Management approach has been adopted to allow Council to give special focus to these areas, as well as ensuring that our smaller retail villages continue thrive.

An ongoing challenge for the Place Managers is to find the right balance between the needs of visitors, residents and the business sector.

Recreation Services This includes all aspects of sport and active leisure, from broad LGA-wide planning, through to the detailed design and construction of specific facilities. A newly emerging area is sports facilities management, programming and maintenance.

page102 29 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 2(b). Council Functions / Activities - Component Descriptions (continued)

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Regulatory Services In the summer season there is an increased demand for this service due to the large influx of visitors. Core areas of focus are:

 Monitoring building sites to ensure adequate pollution control is in place  Ensuring companion animals are effectively and responsibly managed and cared for in accordance with the Companion Animals Act and Regulation  Providing education material and information to the public investigating reports of abandoned vehicles and removing them in accordance with Impounding Act  The quantitative volume of noise, time, place and the frequency of the noise

Social & Affordable Housing This service includes creating and managing secure housing for local people on very low incomes in addition to providing medium term accomodation at subsidised rents to those on low-to-middle income levels.

Traffic & Transport Services This service helps ensure that traffic flows as smoothly, efficiently and safely in Waverley as is possible, given the very small amount of road space we have to share, relative to the very high demand of the residents and visitors who use it.

The service also functions to help provide as many alternatives as possible to private car use including planning and design of pedestrian and cycling routes, and negotiation with the community and other levels of government for improved traffic and parking distribution systems such as residential preferred parking schemes.

Urban Open Space Maintenance & AccessibilityDRAFT This service maintains the roads, footpaths, drains, trees and grass along the 123.46 km of local and regional roads within Waverley Council.

Waste Services This service provides waste and recycling collection services to 28,500 residential properties as well as a commercial collection to businesses within Waverley Council.

page103 30 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 3. Income from Continuing Operations

Actual Actual $ '000 Notes 2015 2014

(a) Rates & Annual Charges

Ordinary Rates Residential 28,962 28,295 Business 11,301 11,022 Total Ordinary Rates 40,263 39,317

Special Rates Nil

Annual Charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611) Domestic Waste Management Services 14,154 13,504 Section 611 Charges 50 46 Total Annual Charges 14,204 13,550 TOTAL RATES & ANNUAL CHARGES 54,467 52,867

Council has used 2012 year valuations provided by the NSW Valuer General in calculating its rates.

(b) User Charges & Fees

Specific User Charges (per s.502 - Specific "actual use" charges) Waste Management Services (non-domestic) 2,679 2,423 Total User Charges 2,679 2,423

Other User Charges & Fees

(i) Fees & Charges - Statutory & Regulatory Functions (per s.608) Hoarding/Crane Permits DRAFT 924 1,295 Planning & Building Regulation 2,066 2,016 Section 149 Certificates (EPA Act) 253 257 Section 603 Certificates 123 135 Town Planning 35 - Total Fees & Charges - Statutory/Regulatory 3,401 3,703

(ii) Fees & Charges - Other (incl. General User Charges (per s.608) Admission & Service Fees 130 142 Bus Shelter Fees 1,311 1,271 Car Parking Fees 6,517 7,071 Car Parking Meter Income 10,307 8,939 Cemeteries 1,574 1,280 Child Care 3,823 3,679 Leaseback Fees - Council Vehicles 117 142 Park Rents 618 869 Restoration Charges 245 963 Road Opening Permits 80 46 Temporary Truck Zone Permit 773 590 Other 1,130 859 Total Fees & Charges - Other 26,625 25,851 TOTAL USER CHARGES & FEES 32,705 31,977 page104 31 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 3. Income from Continuing Operations (continued)

Actual Actual $ '000 Notes 2015 2014

Interest & Dividends - Interest on Overdue Rates & Annual Charges (incl. Special Purpose Rates) 110 112 - Interest earned on Investments (interest & coupon payment income) 2,526 2,195 Fair Value Adjustments - Fair Valuation movements in Investments (at FV or Held for Trading) 254 330 TOTAL INTEREST & INVESTMENT REVENUE 2,890 2,637

Interest Revenue is attributable to: Unrestricted Investments/Financial Assets: Overdue Rates & Annual Charges (General Fund) 110 112 General Council Cash & Investments 2,398 2,314 Restricted Investments/Funds - External: Development Contributions - Section 94 138 65 Domestic Waste Management operations 146 146 Restricted Investments/Funds - Internal: Internally Restricted Assets 98 - Total Interest & Investment Revenue Recognised 2,890 2,637

(d) Other Revenues

DRAFT14 Fair Value Adjustments - Investment Properties 9,724 1,320 Rental Income - Investment Properties 14 2,308 2,199 Rental Income - Other Council Properties 4,103 3,780 Ex Gratia Rates 22 21 Fines 87 115 Fines - Parking 8,096 10,738 Legal Fees Recovery - Rates & Charges (Extra Charges) 30 42 Legal Fees Recovery - Other 126 25 Insurance Claim Recoveries - 1 Recycling Income (non domestic) 345 348 Sale of Abandoned Vehicles - 1 Sales - General 158 15 Other 1,060 341 TOTAL OTHER REVENUE 26,059 18,946

page105 32 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 3. Income from Continuing Operations (continued)

2015 2014 2015 2014 $ '000 Operating Operating Capital Capital

(e) Grants

General Purpose (Untied) Financial Assistance - General Component 1 1,462 721 - - Financial Assistance - Local Roads Component 1 426 206 - - Pensioners' Rates Subsidies - General Component 205 208 - - Total General Purpose 2,093 1,135 - -

1 The Financial Assistance Grant for the comparative 13/14 year reflects a one off timing difference (reduction). This grant ceased being paid in advance in the 13/14 year by up to 50% as had occurred in previous years.

Specific Purpose Pensioners' Rates Subsidies: - Domestic Waste Management 111 110 - - Child Care 3,529 3,117 - - Community Care 646 622 - - Employment & Training Programs 6 2 - - Environmental Protection 323 354 - - Library 57 47 - - Library - per capita 131 128 - - Recreation & Culture 25 - 331 20 Street Lighting 174 172 - - Transport (Roads to Recovery) 203 212 - - Transport (Other Roads & Bridges Funding) 22 - 681 170 Other DRAFT 77 103 - - Total Specific Purpose 5,304 4,867 1,012 190 Total Grants 7,397 6,002 1,012 190

Grant Revenue is attributable to: - Commonwealth Funding 6,405 2,700 302 - - State Funding 778 2,973 710 190 - Other Funding 214 329 - - 7,397 6,002 1,012 190

page106 33 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 3. Income from Continuing Operations (continued)

2015 2014 2015 2014 $ '000 Operating Operating Capital Capital

(f) Contributions

Developer Contributions: (s93 & s94 - EP&A Act, s64 of the LGA): S 93F - Contributions using Planning Agreements - - 621 1,154 S 94A - Fixed Development Consent Levies - - 4,375 3,483 Total Developer Contributions 17 - - 4,996 4,637

Other Contributions: Car Parking - 12 - - Community Services 274 288 - - Dedications (other than by S94) - - 872 4,943 Drainage - - 20 - Other Councils - Joint Works/Services 442 322 - - Paving 1 2 - - Recreation & Culture 65 76 42 95 Roads & Bridges - 2 3 - Other 46 82 - - Total Other Contributions 828 784 937 5,038 Total Contributions 828 784 5,933 9,675

TOTAL GRANTS & CONTRIBUTIONS 8,225 6,786 6,945 9,865 DRAFT Actual Actual $ '000 2015 2014

(g) Restrictions relating to Grants and Contributions

Certain grants & contributions are obtained by Council on condition that they be spent in a specified manner: Unexpended at the Close of the Previous Reporting Period 10,288 7,446 add: Grants & contributions recognised in the current period but not yet spent: 2,752 3,616 less: Grants & contributions recognised in a previous reporting period now spent: (344) (774)

Net Increase (Decrease) in Restricted Assets during the Period 2,408 2,842 Unexpended and held as Restricted Assets 12,696 10,288

Comprising: - Specific Purpose Unexpended Grants 154 445 - Developer Contributions 12,178 9,427 - Other Contributions 364 416 12,696 10,288 page107 34 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 4. Expenses from Continuing Operations

Actual Actual $ '000 Notes 2015 2014

(a) Employee Benefits & On-Costs

Salaries and Wages 44,547 41,798 Travelling 187 157 Employee Leave Entitlements (ELE) 4,368 4,397 Superannuation 4,874 4,857 Workers' Compensation Insurance 1,832 2,635 Fringe Benefit Tax (FBT) 228 230 Training Costs (other than Salaries & Wages) 230 295 Other 244 160 Total Employee Costs 56,510 54,529 less: Capitalised Costs (241) (300) TOTAL EMPLOYEE COSTS EXPENSED 56,269 54,229

Number of "Equivalent Full Time" Employees at year end 600 601

(b) Borrowing Costs

(i) Interest Bearing Liability Costs Interest on Overdraft 5 - Interest on Loans 148 186 Interest on Building Deposits - 3 Total Interest Bearing Liability Costs ExpensedDRAFT 153 189 (ii) Other Borrowing Costs Nil TOTAL BORROWING COSTS EXPENSED 153 189

Raw Materials & Consumables 12,497 8,774 Contractor & Consultancy Costs 25,650 25,237 Contractor & Consultancy Costs (Temporary Staff) 2,793 1,772 Auditors Remuneration (1) 55 56 Infringement Notice Contract Costs (SEINS) 1,158 1,509 Legal Expenses: - Legal Expenses: Planning & Development 485 386 - Legal Expenses: Other 1,660 1,322 Operating Leases: - Operating Lease Rentals: Minimum Lease Payment(2) 1,330 1,031 Other (Fuel & Gas) 656 689 Total Materials & Contracts 46,284 40,776 less: Capitalised Costs (21,400) (22,802) TOTAL MATERIALS & CONTRACTS 24,884 17,974 page108 35 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 4. Expenses from Continuing Operations (continued)

Actual Actual $ '000 Notes 2015 2014

1. Auditor Remuneration

During the year, the following fees were incurred for services provided by

the Council's Auditor (& the Auditors of other Consolidated Entities):

(i) Audit and Other Assurance Services - Audit & review of financial statements: Council's Auditor 55 56 Remuneration for audit and other assurance services 55 56

Total Auditor Remuneration 55 56

2. Operating Lease Payments are attributable to: Buildings 645 330 Computers 307 279 Motor Vehicles 378 422 1,330 1,031

Impairment Costs Depreciation/Amortisation Actual Actual Actual Actual $ '000 DRAFTNotes 2015 2014 2015 2014 (d) Depreciation, Amortisation & Impairment

Plant and Equipment - - 1,707 1,713 Office Equipment - - 308 315 Buildings - Non Specialised - - 3,051 3,092 Buildings - Specialised - - 3,701 3,578 Other Structures - - 194 186 Infrastructure: - Roads - - 4,666 4,681 - Footpaths - - 1,216 1,191 - Stormwater Drainage - - 1,103 1,119 - Other Open Space/Recreational Assets - - 1,645 1,647 Other Assets - Library Books - - 223 229 - Other - - 62 147 TOTAL DEPRECIATION & IMPAIRMENT COSTS EXPENSED - - 17,876 17,898

page109 36 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 4. Expenses from Continuing Operations (continued)

Actual Actual $ '000 Notes 2015 2014

(e) Other Expenses

Other Expenses for the year include the following:

Abandonment of Fines by Office of State Debt Recovery 870 1,187 Advertising 569 691 Bad & Doubtful Debts 82 2 Bank Charges 698 492 Car Park Levy 139 117 Cleaning 925 680 Computer Software Charges 990 886 Contributions/Levies to Other Levels of Government 1 253 - Department of Planning Levy 353 384 - Emergency Services Levy (includes FRNSW, SES, and RFS Levies) 101 94 - NSW Fire Brigade Levy 1,565 1,584 Councillor Expenses - Mayoral Fee 39 38 Councillor Expenses - Councillors' Fees 215 210 Councillors' Expenses (incl. Mayor) - Other (excluding fees above) 90 106 Donations, Contributions & Assistance to other organisations (Section 356) 732 588 Electricity & Heating 860 1,000 Family Day Care Subsidy 1,094 1,002 Insurance 1,228 1,328 Land Tax - Crown Land 411 430 Office Expenses (including computer expenses) 218 128 Postage DRAFT 204 193 Printing & Stationery 642 695 Street Lighting 963 1,117 Subscriptions & Publications 268 290 Telephone & Communications 298 217 Waste Disposal Charges 6,295 6,194 Water Rates & Charges 383 332 Other 1,042 1,014 Total Other Expenses 21,275 21,252 less: Capitalised Costs (135) (77) TOTAL OTHER EXPENSES 21,140 21,175

page110 37 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 5. Gains or Losses from the Disposal of Assets

Actual Actual $ '000 Notes 2015 2014

Plant & Equipment Proceeds from Disposal - Plant & Equipment 629 57 less: Carrying Amount of P&E Assets Sold / Written Off (301) (85) Net Gain/(Loss) on Disposal 328 (28)

Infrastructure Proceeds from Disposal - Infrastructure 11,448 110 less: Carrying Amount of Infrastructure Assets Sold / Written Off (10,360) (1,643) Net Gain/(Loss) on Disposal 1,088 (1,533)

Financial Assets* Proceeds from Disposal / Redemptions / Maturities - Financial Assets 77,800 66,150 less: Carrying Amount of Financial Assets Sold / Redeemed / Matured (77,800) (66,150) Net Gain/(Loss) on Disposal - -

Non Current Assets Classified as "Held for Sale" Proceeds from Disposal - Non Current Assets "Held for Sale" 82,000 - less: Carrying Amount of 'Held for Sale' Assets Sold / Written Off (34,686) - Net Gain/(Loss) on Disposal 47,314 -

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS 48,730 (1,561) DRAFT

page111 38 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 6a. - Cash Assets and Note 6b. - Investments

2015 2015 2014 2014 Actual Actual Actual Actual $ '000 Notes Current Non Current Current Non Current

Cash & Cash Equivalents (Note 6a) Cash on Hand and at Bank 1,711 - 874 - Cash-Equivalent Assets 1 - Deposits at Call 1,630 - 6,510 - - Managed Funds 9,319 - 7,189 - - Short Term Deposits 5,000 - 4,000 - Total Cash & Cash Equivalents 17,660 - 18,573 -

Investments (Note 6b) - Long Term Deposits 59,800 39,000 23,000 4,800 - NCD's, FRN's (with Maturities > 3 months) 11,732 - 8,715 - - Growth Securities 1,979 - 1,925 - Total Investments 73,511 39,000 33,640 4,800 TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS 91,171 39,000 52,213 4,800

1 Those Investments where time to maturity (from date of purchase) is < 3 mths.

Cash, Cash Equivalents & Investments were classified at year end in accordance with AASB 139 as follows:

Cash & Cash Equivalents a. "At Fair Value through the Profit & Loss"DRAFT 17,660 - 18,573 -

Investments a. "At Fair Value through the Profit & Loss" - "Held for Trading" 6(b-i) 13,711 - 10,640 - b. "Held to Maturity" 6(b-ii) 59,800 39,000 23,000 4,800 Investments 73,511 39,000 33,640 4,800

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of investments held.

page112 39 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 6b. Investments (continued)

2015 2015 2014 2014 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current

Note 6(b-i) Reconciliation of Investments classified as "At Fair Value through the Profit & Loss" Balance at the Beginning of the Year 10,640 - 3,476 - Revaluations (through the Income Statement) 254 - 330 - Additions 2,817 - 6,834 - Balance at End of Year 13,711 - 10,640 -

Comprising: - NCD's, FRN's (with Maturities > 3 months) 11,732 - 8,715 - - Growth Securities 1,979 - 1,925 - Total 13,711 - 10,640 -

Note 6(b-ii) Reconciliation of Investments classified as "Held to Maturity" Balance at the Beginning of the Year 23,000 4,800 31,750 7,000 Additions 109,600 39,200 53,400 1,800 Disposals (sales & redemptions) (77,800) - (66,150) - Transfers between Current/Non Current 5,000 (5,000) 4,000 (4,000) Balance at End of Year 59,800 39,000 23,000 4,800

Comprising: DRAFT - Long Term Deposits 59,800 39,000 23,000 4,800 Total 59,800 39,000 23,000 4,800

page113 40 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 6c. Restricted Cash, Cash Equivalents & Investments - Details

2015 2015 2014 2014 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current

Total Cash, Cash Equivalents and Investments 91,171 39,000 52,213 4,800 attributable to: External Restrictions (refer below) - 15,916 8,600 4,800 Internal Restrictions (refer below) 89,292 23,084 41,536 - Unrestricted 1,879 - 2,077 - 91,171 39,000 52,213 4,800

2015 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance

Details of Restrictions

External Restrictions - Included in Liabilities Nil

External Restrictions - Other Developer Contributions - General (D) 9,427 5,134 (2,383) 12,178 Specific Purpose Unexpended Grants (F) 445 - (291) 154 Domestic Waste Management (G) 3,112 3,099 (2,679) 3,532 Other DRAFT 416 - (364) 52 External Restrictions - Other 13,400 8,233 (5,717) 15,916 Total External Restrictions 13,400 8,233 (5,717) 15,916

D Development contributions which are not yet expended for the provision of services and amenities in accordance with contributions plans (refer Note 17). F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1) G Water, Sewerage, Domestic Waste Management (DWM) & other Special Rates/Levies/Charges are externally restricted assets and must be applied for the purposes for which they were raised.

page114 41 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 6c. Restricted Cash, Cash Equivalents & Investments - Details (continued)

2015 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance

Internal Restrictions Plant & Vehicle Replacement 1,970 1,285 (963) 2,292 Infrastructure Replacement 3,110 5,276 (1,258) 7,128 Employees Leave Entitlement 4,796 1,671 (2,924) 3,543 Carry Over Works 4,445 3,864 (2,297) 6,012 Deposits, Retentions & Bonds 15,634 - (7,942) 7,692 IT Equipment & Upgrade 1,191 135 (831) 495 Insurance Claims 200 - - 200 Parking Meters 1,072 800 (404) 1,468 Parking - Off-Street 607 125 (28) 704 Street Tree (Sewer) Aerial Building 252 - - 252 Affordable Housing 1,271 225 - 1,496 Social Housing 330 91 - 421 Future Capital Works 3,919 4,886 (2,118) 6,687 Unexpended Loans 281 - (93) 188 Cemetery Funds 1,823 314 (158) 1,979 Investment Strategy - 86,659 (16,070) 70,589 Looking Good 251 - - 251 Election 134 75 - 209 Other 250 520 - 770 Total Internal Restrictions 41,536 105,926 (35,086) 112,376 TOTAL RESTRICTIONS DRAFT 54,936 114,159 (40,803) 128,292

page115 42 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 7. Receivables

2015 2014 $ '000 Notes Current Non Current Current Non Current

Purpose Rates & Annual Charges 806 232 852 229 Interest & Extra Charges 137 68 127 67 User Charges & Fees 1,043 - 974 - Capital Debtors (being sale of assets) - Sale of Land 500 - 500 - - Other Asset Sales 10,928 - - - Accrued Revenues - Interest on Investments 818 - 324 - - Other Income Accruals 673 - 211 - Government Grants & Subsidies 692 - 231 - Deferred Debtors - - 32 - Net GST Receivable 693 - 1,286 - Parking Fines 2,998 2,860 3,339 3,620 Total 19,288 3,160 7,876 3,916 less: Provision for Impairment User Charges & Fees (131) - (67) - Parking Fines - (2,184) - (2,184) Total Provision for Impairment - Receivables (131) (2,184) (67) (2,184)

TOTAL NET RECEIVABLES 19,157 976 7,809 1,732

Externally Restricted Receivables Domestic Waste Management DRAFT 507 154 595 113 Total External Restrictions 507 154 595 113 Internally Restricted Receivables Nil Unrestricted Receivables 18,650 822 7,214 1,619 TOTAL NET RECEIVABLES 19,157 976 7,809 1,732

Notes on Debtors above: (i) Rates & Annual Charges Outstanding are secured against the property.

(ii) Doubtful Rates Debtors are provided for where the value of the property is less than the debt outstanding. An allowance for other doubtful debts is made when there is objective evidence that a receivable is impaired.

(iii) Interest was charged on overdue rates & charges at 8.50% (2014 9.00%). Generally all other receivables are non interest bearing.

(iv) Please refer to Note 15 for issues concerning Credit Risk and Fair Value disclosures.

page116 43 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 8. Inventories & Other Assets

2015 2014 $ '000 Notes Current Non Current Current Non Current

Inventories Stores & Materials - - 221 - Total Inventories - - 221 -

Other Assets Prepayments 646 - 672 - Total Other Assets 646 - 672 -

TOTAL INVENTORIES / OTHER ASSETS 646 - 893 -

Externally Restricted Assets

Water Nil

Sewerage Nil

Domestic Waste Management Trading Stock - - 410 - Total Domestic Waste Management - - 410 -

Other Nil DRAFT

Total Externally Restricted Assets - - 410 - Total Internally Restricted Assets - - - - Total Unrestricted Assets 646 - 483 - TOTAL INVENTORIES & OTHER ASSETS 646 - 893 -

Other Disclosures

(a) Inventory Write Downs There were no amounts recognised as an expense relating to the write down of Inventory balances held during the year.

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of other assets held.

page117 44 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 9a. Infrastructure, Property, Plant & Equipment

Asset Movements during the Reporting Period as at 30/6/2014 as at 30/6/2015 Revaluation WDV Asset Depreciation WIP Adjustments Increments of Asset At At Accumulated Carrying Additions Expense Transfers & Transfers to Equity At At Accumulated Carrying Disposals (ARR) $ '000 Cost Fair Value Dep'n Impairment Value Cost Fair Value Dep'n Impairment Value Capital Work in Progress 12,499 - - - 12,499 3,071 - - (11,576) - - 3,994 - - - 3,994 Plant & Equipment - 17,302 9,530 - 7,772 2,475 (299) (1,707) 18 - - - 17,905 9,646 - 8,259 Office Equipment - 9,025 7,904 - 1,121 411 (5) (308) 489 (14) - - 9,929 8,235 - 1,694 Land: - Operational Land - 69,564 - - 69,564 - (3,895) - - - - - 65,669 - - 65,669 - Community Land - 145,835 - - 145,835 ------145,835 - - 145,835 Buildings - Non Specialised - 105,733 37,001 - 68,732 7,246 (6,343) (3,051) 9,273 - - - 117,730 41,873 - 75,857 Buildings - Specialised - 109,193 49,287 - 59,906 2,550 - (3,701) 926 - - - 112,669 52,988 - 59,681 Other Structures - 18,305 12,846 - 5,459 247 - (194) 201 4 - - 12,017 6,300 - 5,717 Infrastructure: - Roads - 342,770 164,887 - 177,883 2,910 (42) (4,666) 144 1,213 36,104 - 382,772 135,407 - 247,365 - Footpaths - 44,151 15,467 - 28,684 2,386 (8) (1,216) 418 39 3,516 ------Stormwater Drainage - 111,903 39,406 - 72,497 124 (45) (1,103) - - 21,579 - 136,041 42,989 - 93,052 - Other Open Space/Recreational Assets - 52,020 1,750 - 50,270 354 (24) (1,645) 107 - - - 85,744 36,682 - 49,062 Other Assets: - Library Books - 2,887 1,735 - 1,152 210 - (223) - - - - 2,820 1,680 - 1,140 - Other - 6,022 1,808 - 4,214 - - (62) - (1,242) - - 4,013 1,103 - 2,910 TOTAL INFRASTRUCTURE, PROPERTY, PLANT & EQUIP. DRAFT 12,499 1,034,710 341,621 - 705,588 21,984 (10,661) (17,876) - - 61,199 3,994 1,093,144 336,903 - 760,235

Additions to Buildings & Infrastructure Assets are made up of Asset Renewals ($9,176) and New Assets ($9,963). Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of other Infrastructure, Property, Plant & Equipment. Financial Statements 2015 Statements Financial page 45 118 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 9b. Externally Restricted Infrastructure, Property, Plant & Equipment

$ '000 Actual Actual 2015 2014 Class of Asset At At A/Dep & Carrying At At A/Dep & Carrying Cost Fair Value Impairm't Value Cost Fair Value Impairm't Value Domestic Waste Management Plant & Equipment - 9,430 5,390 4,040 - 8,772 5,383 3,389 Total DWM - 9,430 5,390 4,040 - 8,772 5,383 3,389

TOTAL RESTRICTED I,PP&E - 9,430 5,390 4,040 - 8,772 5,383 3,389

Note 9c. Infrastructure, Property, Plant & Equipment - Current Year Impairments

Actual Actual Council has recognised no impairment losses during the reporting period nor reversed any prior period losses.

DRAFT

page119 46 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 10a. Payables, Borrowings & Provisions

2015 2014 $ '000 Notes Current Non Current Current Non Current

Payables Goods & Services - operating expenditure 6,215 - 2,816 - Goods & Services - capital expenditure - - 741 - Payments Received In Advance 725 - 313 - Accrued Expenses: - Borrowings 6 - - - - Salaries & Wages 392 - 215 - - Other Expenditure Accruals 1,680 - 1,320 - Security Bonds, Deposits & Retentions 879 - 8,995 - ATO - Net GST Payable 30 - - - Builders Deposits 6,813 - 6,639 - Other 37 - 37 - Total Payables 16,777 - 21,076 -

Borrowings Loans - Secured 1 836 1,081 1,117 1,918 Total Borrowings 836 1,081 1,117 1,918

Provisions Employee Benefits; Annual Leave 4,719 - 4,921 - Sick Leave 2,147 - 2,704 - Long Service Leave 8,159 225 8,413 542 Gratuities 449 - 1,341 - Time Off in Lieu DRAFT 219 - 288 - Total Provisions 15,693 225 17,667 542

Total Payables, Borrowings & Provisions 33,306 1,306 39,860 2,460

(i) Liabilities relating to Restricted Assets 2015 2014 Current Non Current Current Non Current Externally Restricted Assets Domestic Waste Management 948 1,276 895 755 Liabilities relating to externally restricted assets 948 1,276 895 755

Internally Restricted Assets Nil

Total Liabilities relating to restricted assets 948 1,276 895 755 Total Liabilities relating to Unrestricted Assets 32,358 30 38,965 1,705 TOTAL PAYABLES, BORROWINGS & PROVISIONS 33,306 1,306 39,860 2,460

1. Loans are secured over the General Rating Income of Council Disclosures on Liability Interest Rate Risk Exposures, Fair Value Disclosures & Security can be found in Note 15. page120 47 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 10a. Payables, Borrowings & Provisions (continued)

Actual Actual $ '000 2015 2014

(ii) Current Liabilities not anticipated to be settled within the next 12 months

The following Liabilities, even though classified as current, are not expected to be settled in the next 12 months.

Provisions - Employees Benefits 13,540 10,766 Payables - Security Bonds, Deposits & Retentions 7,692 7,431 21,232 18,197

Note 10b. Description of and movements in Provisions

2014 2015 Opening Remeasurement Unused Closing Additional Decrease due to Balance effects due to amounts Balance Class of Provision Provisions Payments as at 1/7/14 Discounting reversed as at 30/6/15 Annual Leave 4,921 2,993 (3,195) - - 4,719 Sick Leave 2,704 - (557) - - 2,147 Long Service Leave 8,955 1,289 (1,860) - - 8,384 Other Leave (enter deta 288 104 (173) - - 219 Gratuities 1,341 - (892) - - 449 TOTAL 18,209 DRAFT 4,386 (6,677) - - 15,918 a. Employees Leave Entitlements & On-Costs represents those benefits accrued and payable and an estimate of those that will become payable in the future as a result of past service.

page121 48 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 11. Statement of Cash Flows - Additional Information

Actual Actual $ '000 Notes 2015 2014

(a) Reconciliation of Cash Assets

Total Cash & Cash Equivalent Assets 6a 17,660 18,573 Less Bank Overdraft 10 - - BALANCE as per the STATEMENT of CASH FLOWS 17,660 18,573

(b) Reconciliation of Net Operating Result to Cash provided from Operating Activities

Net Operating Result from Income Statement 59,699 10,052 Adjust for non cash items: Depreciation & Amortisation 17,876 17,898 Net Losses/(Gains) on Disposal of Assets (48,730) 1,561 Non Cash Capital Grants and Contributions (872) (5,789) Losses/(Gains) recognised on Fair Value Re-measurements through the P&L: - Investments classified as "At Fair Value" or "Held for Trading" (254) (330) - Investment Properties (9,724) (1,320) - Other (non cash donation) - 20

+/- Movement in Operating Assets and Liabilities & Other Cash Items: Decrease/(Increase) in Receivables 240 1,232 Increase/(Decrease) in Provision for Doubtful Debts 64 (21) Decrease/(Increase) in Inventories 221 34 Decrease/(Increase) in Other Assets DRAFT 26 (105) Increase/(Decrease) in Payables 3,399 (281) Increase/(Decrease) in accrued Interest Payable 6 (25) Increase/(Decrease) in other accrued Expenses Payable 537 606 Increase/(Decrease) in Other Liabilities (7,500) 7,955 Increase/(Decrease) in Employee Leave Entitlements (2,291) (1,237) NET CASH PROVIDED FROM/(USED IN) OPERATING ACTIVITIES from the STATEMENT of CASH FLOWS 12,697 30,250

page122 49 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 11. Statement of Cash Flows - Additional Information (continued)

Actual Actual $ '000 Notes 2015 2014

S94 Contributions "in kind" - 846 Other Dedications 872 4,943 Total Non-Cash Investing & Financing Activities 872 5,789

(d) Financing Arrangements

(i) Unrestricted access was available at balance date to the following lines of credit: Bank Overdraft Facilities (1) 250 250 Credit Cards / Purchase Cards 25 25 Total Financing Arrangements 275 275

1. The Bank overdraft facility may be drawn at any time and may be terminated by the bank without notice. Interest rates on overdrafts are Interest Rates on Loans & Other Payables are disclosed in Note 15.

(ii) Secured Loan Liabilities Loans are secured by a mortgage over future years Rate Revenue only. DRAFT

page123 50 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 12. Commitments for Expenditure

Actual Actual $ '000 Notes 2015 2014

(a) Capital Commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Property, Plant & Equipment Buildings 2,538 8,337 Plant & Equipment 362 1,714 Infrastructure 2,628 1,062 Total Commitments 5,528 11,113

These expenditures are payable as follows: Within the next year 5,528 11,113 Total Payable 5,528 11,113

Sources for Funding of Capital Commitments: Future Grants & Contributions - 91 Sect 64 & 94 Funds/Reserves 3,538 350 Unexpended Grants 22 109 Externally Restricted Reserves - 1,396 Internally Restricted Reserves 1,702 8,977 Unexpended Loans 266 190 Total Sources of Funding DRAFT 5,528 11,113 (b) Finance Lease Commitments

Nil

(c) Operating Lease Commitments (Non Cancellable) a. Commitments under Non Cancellable Operating Leases at the Reporting date, but not recognised as Liabilities are payable:

Within the next year 233 269 Later than one year and not later than 5 years 181 249 Later than 5 years - - Total Non Cancellable Operating Lease Commitments 414 518 b. Non Cancellable Operating Leases include the following assets: Motor Vehicles - $682k, and IT equipment - $134k. Contingent Rentals may be payable depending on the condition of items or usage during the term of the leases, average 4 years

Conditions relating to Operating Leases: - All Operating Lease Agreements are secured only against the Leased Asset. - No Lease Agreements impose any financial restrictions on Council regarding future debt etc. page124 51 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 13a(i). Statement of Performance Measurement - Indicators (Consolidated)

Amounts Indicator Prior Periods $ '000 2015 2015 2014 2013

Local Government Industry Indicators - Consolidated

1. Operating Performance Ratio Total continuing operating revenue (1) (excl. Capital Grants & Contributions) - Operating Expenses (5,954) -5.21% 0.09% -1.92% Total continuing operating revenue (1) 114,368 (excl. Capital Grants & Contributions)

2. Own Source Operating Revenue Ratio Total continuing operating revenue (1) (excl. ALL Grants & Contributions) 106,143 87.50% 86.29% 87.35% Total continuing operating revenue (1) 121,313

3. Unrestricted Current Ratio Current Assets less all External Restrictions (2) 110,467 (3, 4) 9.93x 4.14 5.18 Current Liabilities less Specific Purpose Liabilities 11,126

4. Debt Service Cover Ratio Operating Result (1) before capital excluding interest and depreciation / impairment / amortisation 12,075 9.50x 12.62 8.74 Principal Repayments (from the Statement of Cash Flows) 1,271 + Borrowing Costs (from the Income Statement)DRAFT 5. Rates, Annual Charges, Interest & Extra Charges Outstanding Percentage Rates, Annual and Extra Charges Outstanding 1,243 2.22% 2.35% 2.71% Rates, Annual and Extra Charges Collectible 55,882

6. Cash Expense Cover Ratio Current Year's Cash and Cash Equivalents + All Term Deposits 116,460 11.89 x12 5.63 5.95 Payments from cash flow of operating and 9,791 mths financing activities

Notes (1) Excludes fair value adjustments and reversal of revaluation decrements, net gain/(loss) on sale of assets and the net share of interests in joint ventures & associates. (2) Refer Notes 6-8 inclusive. Also excludes any real estate & land for resale not expected to be sold in the next 12 months (3) Refer to Note 10(a). (4) Refer to Note 10(a)(ii) - excludes all payables & provisions not expected to be paid in the next 12 months (incl. ELE). page125 52 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 14. Investment Properties

Actual Actual $ '000 Notes 2015 2014

(a) Investment Properties at Fair value

Investment Properties on Hand 133,925 124,200

Reconciliation of Annual Movement: Opening Balance 124,200 122,880 - Net Gain/(Loss) from Fair Value Adjustments 9,724 1,320 - Other Movements 1 - CLOSING BALANCE - INVESTMENT PROPERTIES 133,925 124,200

(b) Valuation Basis

The basis of valuation of Investment Properties is Fair Value, being the amounts for which the properties could be exchanged between willing parties in arms length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases.

The 2015 revaluations were based on Independe Scott Fullarton Valuations Pty Ltd (ACN 003 683

Refer to Note 12 for disclosures relating to any Capital and Service obligations that have been contracted.

(d) Leasing Arrangements Details of leased Investment Properties areDRAFT as follows; Future Minimum Lease Payments receivable under non-cancellable Investment Property Operating Leases not recognised in the Financial Statements are receivable as follows: Within 1 year 2,275 1,543 Later than 1 year but less than 5 years 4,880 1,009 Total Minimum Lease Payments Receivable 7,155 2,552

(e) Investment Property Income & Expenditure - summary

Rental Income from Investment Properties: - Minimum Lease Payments 2,308 2,199 - Other Income 5,101 3,289 Direct Operating Expenses on Investment Properties: - that generated rental income (1,797) (1,972) - that did not generate rental income (548) (243) Net Revenue Contribution from Investment Properties 5,064 3,273 plus: Fair Value Movement for year 9,724 1,320 Total Income attributable to Investment Properties 14,788 4,593

Refer to Note 27- Fair Value Measurement for information regarding the fair value of investment properties held. page126 53 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 15. Financial Risk Management

$ '000

Risk Management

Council's activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interest rate risk.

The Council's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council.

Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.

Financial risk management is carried out by Council's Finance Section under policies approved by the Council.

A comparison by category of the carrying amounts and fair values of Council's Financial Assets & Financial Liabilities recognised in the financial statements is presented below.

Carrying Value Fair Value 2015 2014 2015 2014 Financial Assets Cash and Cash Equivalents 17,660 18,573 17,660 18,573 Investments - "Held for Trading" 13,711 10,640 13,711 10,640 - "Held to Maturity" 98,800 27,800 98,800 27,800 Receivables 20,133 9,541 20,133 9,541 Total Financial Assets DRAFT 150,304 66,554 150,304 66,554 Financial Liabilities Payables 16,052 20,763 16,052 20,763 Loans / Advances 1,917 3,035 1,917 3,035 Total Financial Liabilities 17,969 23,798 17,969 23,798

Fair Value is determined as follows:

- Cash & Cash Equivalents, Receivables, Payables - are estimated to be the carrying value which approximates mkt value.

- Borrowings & Held to Maturity Investments - are based upon estimated future cash flows discounted by the current market interest rates applicable to assets & liabilities with similar risk profiles, unless quoted market prices are available.

- Financial Assets classified (i) "at fair value through profit & loss" or (ii) Available for Sale - are based upon quoted market prices (in active markets for identical investments) at the reporting date or independent valuation.

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of financial assets & liabilities

page127 54 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 15. Financial Risk Management (continued)

$ '000

(a) Cash & Cash Equivalents, Financial assets 'at fair value through the profit & Loss' "Available-for-sale" financial assets & "Held-to-maturity" Investments

Council's objective is to maximise its return on cash & investments whilst maintaining an adequate level of liquidity and preserving capital.

Council's Finance area manages the Cash & Investments portfolio with the assistance of independent advisors.

Council has an Investment Policy which complies with the Local Government Act & Minister's Investment Order. This Policy is regularly reviewed by Council and it's staff and an Investment Report is tabled before Council on a monthly basis setting out the portfolio breakup and its performance.

The risks associated with the investments held are:

- Price Risk - the risk that the capital value of Investments may fluctuate due to changes in market prices, whether there changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.

- Interest Rate Risk - the risk that movements in interest rates could affect returns and income.

- Credit Risk - the risk that the investment counterparty) will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council - be it of a capital or income nature.

Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasing investments with high credit ratings or capitalDRAFT guarantees. Council also seeks advice from independent advisers before placing any funds in Cash Equivalents & Investments.

The following represents a summary of the sensitivity of Council's Income Statement and Accumulated Surplus (for the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.

It is assumed that the change in interest rates would have been constant throughout the reporting period.

Increase of Values/Rates Decrease of Values/Rates 2015 Profit Equity Profit Equity Possible impact of a 10% movement in Market Values 1,371 1,371 (1,371) (1,371) Possible impact of a 1% movement in Interest Rates 597 597 (597) 597

2014 Possible impact of a 10% movement in Market Values 1,064 1,064 (1,064) (1,064) Possible impact of a 1% movement in Interest Rates 464 464 (464) (464)

page128 55 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 15. Financial Risk Management (continued)

$ '000

(b) Receivables

Council's major receivables comprise (i) Rates & Annual charges and (ii) User Charges & Fees. The major risk associated with these receivables is credit risk - the risk that debts due and payable to Council may not be repaid in full. Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures. It also encourages ratepayers to pay their rates by the due date through incentives. Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to the debts - that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates & annual charges at higher than market rates which further encourages the payment of debt. There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions. The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance. Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors. There are no material receivables that have been subjected to a re-negotiation of repayment terms. A profile of Council's receivables credit risk at balance date follows:

2015 2015 2014 2014 Rates & Rates & Annual Other Annual Other DRAFTCharges Receivables Charges Receivables (i) Ageing of Receivables - % Current (not yet overdue) 78% 98% 88% 56% Overdue 22% 2% 12% 44% 100% 100% 100% 100%

Rates & Rates & (ii) Ageing of Receivables - value Annual Other Annual Other Rates & Annual Charges Other Receivables Charges Receivables Charges Receivables Current Current 806 16,730 962 5,476 < 1 year overdue 0 - 30 days overdue 232 997 119 197 1 - 2 years overdue 30 - 60 days overdue - 127 - 304 2 - 5 years overdue 60 - 90 days overdue - 148 - 300 > 5 years overdue > 90 days overdue - 3,408 - 4,434 1,038 21,410 1,081 10,711

(iii) Movement in Provision for Impairment 2015 2014 of Receivables Balance at the beginning of the year 2,251 2,272 + new provisions recognised during the year 82 2 - amounts already provided for & written off this year (18) (23) Balance at the end of the year 2,315 2,251 page129 56 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 15. Financial Risk Management (continued)

$ '000

Payables & Borrowings are both subject to liquidity risk - the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended & overdraft facilities utilised as required.

The contractual undiscounted cash outflows (ie. principal and interest) of Council's Payables & Borrowings are set out in the maturity table below:

$ '000 Subject Total Actual to no payable in: Cash Carrying maturity ≤ 1 Year 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs > 5 Yrs Outflows Values

2015 Trade/Other Payables 7,692 8,360 - - - - - 16,052 16,052 Loans & Advances - 836 667 414 - - - 1,917 1,917 Total Financial Liabilities 7,692 9,196 667 414 - - - 17,969 17,969

2014 Trade/Other Payables 15,634 5,129 - - - - - 20,763 20,763 Loans & Advances - 1,117 DRAFT 837 667 414 - - 3,035 3,035 Total Financial Liabilities 15,634 6,246 837 667 414 - - 23,798 23,798

Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs & debt servicing requirements. Council manages this risk through the diversification of borrowing types, maturities & interest rate structures.

The following interest rates were applicable 2015 2014 to Council's Borrowings at balance date: Carrying Average Carrying Average Value Interest Rate Value Interest Rate Trade/Other Payables 16,052 0.0% 20,763 0.0% Loans & Advances - Fixed Interest Rate 1,917 6.0% 3,035 6.0% 17,969 23,798

page130 57 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 16. Material Budget Variations

$ '000

Council's Original Financial Budget for 14/15 was adopted by the Council on 17 June 2014.

While the Income Statement included in this General Purpose Financial Report must disclose the Original Budget adopted by Council, the Local Government Act requires Council to review its Financial Budget on a Quarterly Basis, so that it is able to manage the various variations between actuals versus budget that invariably occur throughout the year.

This Note sets out the details of MATERIAL VARIATIONS between Council's Original Budget and its Actual results for the year as per the Income Statement - even though such variations may have been adjusted for during each Quarterly Budget Review.

Note that for Variations* of Budget to Actual : Material Variations represent those variances that amount to 10% or more of the original budgeted figure. F = Favourable Budget Variation, U = Unfavourable Budget Variation

2015 2015 2015 $ '000 Budget Actual ------Variance* ------

REVENUES Rates & Annual Charges 54,415 54,467 52 0% F

User Charges & Fees 35,239 32,705 (2,534) (7%) U Interest & Investment Revenue DRAFT 3,080 2,890 (190) (6%) U Other Revenues 18,087 26,059 7,972 44% F The higher than anticipated income in the Other Revenues category is due to the investment property fair valuation has increased by $9.7 million which is not being budgeted.

Operating Grants & Contributions 6,810 8,225 1,415 21% F The favourable 21 per cent when compared to the original budget because of the childcare benefit is higher than originally forecasted, and also contribution from Woollahra Council towarded to the AIF operation is not anticipated when we prepared the 2014/15 budget.

Capital Grants & Contributions 16,467 6,945 (9,522) (58%) U The unfavourable 56 per cent when compared to the original budget because of the classification in recognising of Woollahra Council's contribution toward to the new Council Depot is being recognised as a capital contribution in the original budget but this transaction is being recognised in the Net Gains from Disposal of Assets category at the end of year because of it is related to a sale of ownership.

Net Gains from Disposal of Assets 82,413 48,730 (33,683) (41%) U The unfavourable 41 per cent when compared to the original budget because we are recognised only the proceeds from asset disposal in the budget.

page131 58 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 16. Material Budget Variations (continued)

2015 2015 2015 $ '000 Budget Actual ------Variance* ------

EXPENSES Employee Benefits & On-Costs 57,315 56,269 1,046 2% F

Borrowing Costs 240 153 87 36% F The favourable 36 per cent is due to new borrowings in the original budget are not required in 2014/15 due to projects have deferred to 2015/16 financial year, hence cost saving resulted in the Borrowing Costs at the year-end.

Materials & Contracts 21,981 24,884 (2,903) (13%) U The unfavourable 13 per cent is mainly due to the higher than anticipated legal costs and the reliance on agency contractors to fill vacant positions during the year.

Depreciation & Amortisation 17,796 17,876 (80) (0%) U

Other Expenses 19,838 21,140 (1,302) (7%) U

Budget Variations relating to Council's Cash Flow Statement include:

Cash Flows from Operating Activities 33,566 12,697 (20,869) (62.2%) U The higher than anticipated net cash inflow is mainly due to a low spending on the capital works program.

Cash Flows from Investing Activities (41,173) (12,492) 28,681 (69.7%) F The cash investment movements during theDRAFT year is higher than originally anticipated. Cash Flows from Financing Activities 6,350 (1,118) (7,468) (117.6%) U The new borrowings forecasted in the original budget have not happened in the 2014/15 financial year.

page132 59 Financial Statements 2015 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 17. Statement of Developer Contributions

$ '000

Council recovers contributions, raises levies & enters into planning agreements on development works that are subject to a development consent issued by Council. All contributions must be spent/utilised for the specific purpose they were levied and any interest applicable to unspent funds must be attributed to remaining funds.

The following tables detail the receipt, interest and use of the above contributions & levies and the value of all remaining funds which are "restricted" in their future use.

SUMMARY OF CONTRIBUTIONS & LEVIES Projections Cumulative Contributions Interest Expenditure Internal Held as Exp Over or Internal PURPOSE Opening received during the Year earned during Borrowing Restricted Future still (under) Borrowings Balance Cash Non Cash in Year Year (to)/from Asset income outstanding Funding due/(payable) S94A Levies - under a Plan 3,224 4,375 - 138 (2,173) - 5,564 81,634 84,986 - Total S94 Revenue Under Plans 3,224 4,375 - 138 (2,173) - 5,564 81,634 84,986 -

S93F Planning Agreements 6,203 621 - - (210) - 6,614 14,500 26,947 Total Contributions 9,427 4,996 DRAFT - 138 (2,383) - 12,178 - - - - S94A LEVIES - UNDER A PLAN

Projections Cumulative Contributions Interest Expenditure Internal Held as Exp Over or Internal PURPOSE Opening received during the Year earned during Borrowing Restricted Future still (under) Borrowings Balance Cash Non Cash in Year Year (to)/from Asset income outstanding Funding due/(payable) Roads 3,224 4,375 - 138 (2,173) - 5,564 - - - Total 3,224 4,375 - 138 (2,173) - 5,564 -

Page133 60 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 18. Contingencies & Other Assets/Liabilities Not Recognised

$ '000

The following assets and liabilities do not qualify for (ii) StateCover Limited recognition in the Statement of Financial Position, but their knowledge & disclosure is considered relevant Council is a member of StateCover Mutual Limited to the users of Council's Financial Report. and holds a partly paid share in the entity.

StateCover is a company providing workers LIABILITIES NOT RECOGNISED: compensation insurance cover to the NSW Local Government Industry and specifically Council. 1. Guarantees Council has a contingent liability to contribute further (i) Defined Benefit Superannuation equity in the event of the erosion of the Company's Contribution Plans capital base as a result of the company's past performance and/or claims experience or as a result Council participates in an employer sponsored of any increased prudential requirements from APRA. Defined Benefit Superannuation Scheme, and makes contributions as determined by the Superannuation These future equity contributions would be required Scheme's Trustees. to maintain the company’s minimum level of Net Assets in accordance with its Licence Requirements. Member Councils bear responsibility of ensuring there are sufficient funds available to pay out the required (iii) Other Guarantees benefits as they fall due. Council has provided no other Guarantees other than The Schemes most recent full actuarial review those listed above. indicated that the Net Assets of the Scheme were not sufficient to meet the accrued benefits DRAFTof the 2. Other Liabilities Schemes Defined Benefit member category with member Councils required to make significantly (i) Third Party Claims higher contributions in future years. The Council is involved from time to time in various The Local Government Superannuation Scheme claims incidental to the ordinary course of business however is unable to provide Council with an accurate including claims for damages relating to its services. estimate of its share of the net deficit and accordingly Council has not recorded any net liability from it's Council believes that it is appropriately covered Defined Benefit Scheme obligations in accordance for all claims through its Insurance Coverage and with AASB 119. does not expect any material liabilities to eventuate.

Future contributions made to the defined benefit Council levies Section 94/94A Contributions upon scheme to rectify the net deficit position will be various development across the Council area through recognised as an expense when they become the required Contributions Plans. payable - similar to the accounting for Defined Contributions Plans. As part of these Plans, Council has received funds for which it will be required to expend the monies in accordance with those Plans.

page134 61 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 18. Contingencies & Other Assets/Liabilities Not Recognised (continued)

$ '000

LIABILITIES NOT RECOGNISED (continued):

2. Other Liabilities (continued) 3. Remediation costs associated with the sale of the Waverley Portman Depot As well, these Plans indicate proposed future expenditure to be undertaken by Council, which will The sale of the land is contingent on Council carrying be funded by making levies and receipting funds in out remediation works to the site prior to contract future years or where a shortfall exists by the use of completion. The remediation work will be at council's Council's General Funds. expense and includes the removal and clearance of the improvements, fixtures, rubble and debris. The These future expenses do not yet qualify as liabilities costs of such work can not be reliably measured at the as of the Reporting Date, but represent Council's time completing these financial statements. intention to spend funds in the manner and timing set out in those Plans.

(ii) Potential Land Acquisitions due to Planning ASSETS NOT RECOGNISED: Restrictions imposed by Council (i) Affordable Housing Council has classified a number of privately owned land parcels as Local Open Space or Bushland. Under Council's Development Consent Policy 1 (DCP1) developers can if they wish for gain increased As a result, where notified in writing by the various floor space ratio. owners, Council will be required to purchase these land parcels. To offset the increased floor space ratio the developer DRAFTmakes available to council Affordable Housing for low At reporting date, reliable estimates as to the value to moderate income persons. of any potential liability (& subsequent land asset) from such potential acquisitions has not been Council and the applicant enter into a Deed of possible. Agreement to offer council a unit or units in either perpetuity or fixed periods of time. (iii) Legal Expenses These units are managed by a Community Court's normal practice that parties bear their own Organisation identified by Council. Affordable Housing under the Environmental Planning & Assessment Act units offered to council in perpetuity are recognised as (as amended). Pursuant to that act, certain persons an asset while those fixed for periods of time are not aggrieved by a planning decision of the Council may recognised in council's accounts. appeal to the Land & Environment Court. It is the Court's normal practice that parties bear their own (ii) Land Under Roads legal costs. As permitted under AASB 1051, Council has elected At reporting date, all known costs have been not to bring to account Land Under Roads that it recognised, but the amount of further costs owned or controlled up to & including 30/6/08. cannot be known until the appeals are determined.

page135 62 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 19. Interests in Other Entities

$ '000

Council has no interest in any Controlled Entities, Joint Arrangements or Associates.

Note 20. Equity - Retained Earnings and Revaluation Reserves

Actual Actual $ '000 Notes 2015 2014

(a) Retained Earnings

Movements in Retained Earnings were as follows: Balance at beginning of Year (from previous years audited accounts) 596,004 585,069 a. Correction of Prior Period Errors 20 (c) 410 410 b. Net Operating Result for the Year 59,699 10,052 c. Transfers between Equity 42 883 Balance at End of the Reporting Period 656,155 596,414

(b) Reserves

(i) Reserves are represented by:

- Infrastructure, Property, Plant & Equipment Revaluation Reserve 354,343 293,186 Total DRAFT 354,343 293,186

(ii) Reconciliation of movements in Reserves:

Infrastructure, Property, Plant & Equipment Revaluation Reserve - Opening Balance 293,186 294,069 - Revaluations for the year 9(a) 61,199 - - Transfer to Retained Earnings for Asset disposals (42) (883) - Balance at End of Year 354,343 293,186

TOTAL VALUE OF RESERVES 354,343 293,186

(iii) Nature & Purpose of Reserves

Infrastructure, Property, Plant & Equipment Revaluation Reserve - The Infrastructure, Property, Plant & Equipment Revaluation Reserve is used to record increments/decrements of Non Current Asset values due to their revaluation.

page136 63 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 20. Equity - Retained Earnings and Revaluation Reserves (continued)

Actual Actual $ '000 Notes 2015 2014

Correction of errors disclosed in this year's financial statements:

New found assets in Open Space asset category 410 -

In accordance with AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors, the above Prior Period Errors have been recognised retrospectively.

These amounted to the following Equity Adjustments:

- Adjustments to Opening Equity - 1/7/13 - - (relating to adjustments for the 30/6/13 reporting year end and prior periods) - Adjustments to Closing Equity - 30/6/14 410 - (relating to adjustments for the 30/6/14 year end) Total Prior Period Adjustments - Prior Period Errors 410 -

(d) Voluntary Changes in Accounting Policies

Council made no voluntary changes in any accounting policies during the year. DRAFT Note 21. Financial Result & Financial Position by Fund

Council utilises only a General Fund for its operations.

page137 64 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 22. "Held for Sale" Non Current Assets & Disposal Groups

2015 2015 2014 2014 $ '000 Current Non Current Current Non Current

(i) Non Current Assets & Disposal Group Assets

Non Current Assets "Held for Sale" Land - - 34,685 - Total Non Current Assets "Held for Sale" - - 34,685 -

Disposal Group Assets "Held for Sale" None

TOTAL NON CURRENT ASSETS CLASSIFIED AS "HELD FOR SALE" - - 34,685 -

(ii) Details of Assets & Disposal Groups Proceeds from above asset sale will be internally restricted to capital works projects including new/replacement Council Depot.

Disposal Groups Assets "Held for Sale" $ '000 2015 2014 2015 2014

(iii) Reconciliation of Non Current Assets "Held for Sale" & Disposal Groups - i.e. Discontinued OperationsDRAFT Opening Balance - - 34,685 34,685 less: Carrying Value of Assets/Operations Sold - (34,686) - Balance still unsold after 12 months: - - (1) 34,685 Balancing Item - requires re-classification above!! - - 1 - Closing Balance of "Held for Sale" Non Current Assets & Operations - - - 34,685

Refer to Note 27 - Fair Value Measurement for fair value measurement information.

page138 65 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 23. Events occurring after the Reporting Date

$ '000

Events that occur between the end of the reporting period (ending 30 June 2015) and the date when the financial statements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditors' Report as the applicable "authorised for issue" date relating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" date is dd/mm/yy.

Events that occur after the Reporting Period represent one of two types:

(i) Events that provide evidence of conditions that existed at the Reporting Period

These financial statements (and the figures therein) incorporate all "adjusting events" that provided evidence of conditions that existed at 30 June 2015.

(ii) Events that provide evidence of conditions that arose after the Reporting Period

These financial statements (& figures therein) do not incorporate any "non-adjusting events" that have occurred after 30 June 2015 and which are only indicative of conditions that arose after 30 June 2015.

Council is unaware of any material or significant "non-adjusting events" that should be disclosed.

Note 24. Discontinued OperationsDRAFT

Council has not classified any of its Operations as "Discontinued".

Note 25. Intangible Assets

Actual Actual Intangible Assets represent identifiable non-monetary asset without physical substance.

Council is unaware of any control over Intangible Assets that warrant recognition in the Financial Statements, including either internally generated and developed assets or purchased assets.

Note 26. Reinstatement, Rehabilitation & Restoration Liabilities

Council has no outstanding obligations to make, restore, rehabilitate or reinstate any of its assets/operations. page139 66 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement

$ '000

The Council measures the following asset and liability classes at fair value on a recurring basis:

- Infrastructure, Property, Plant and Equipment - Investment Property - Financial Assets & Liabilities

The fair value of assets and liabilities must be estimated in accordance with various Accounting Standards for either recognition and measurement requirements or for disclosure purposes.

AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a "level" in the fair value hierarchy as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(1) The following table presents all assets and liabilities that have been measured & recognised at fair values: Fair Value Measurement Hierarchy 2015 Level 1 Level 2 Level 3 Total Date Quoted Significant Significant Recurring Fair Value Measurements of latest prices in observable unobservable Valuation active mkts inputs inputs Investment Properties Investment Properties DRAFT30/06/15 - - 133,925 133,925 Total Investment Properties - - 133,925 133,925

Infrastructure, Property, Plant & Equipment Buildings - Non specialised 30/06/15 - - 75,867 75,867 Buildings Special 30/06/15 - - 59,681 59,681 Community Land 30/06/15 - - 145,835 145,835 Operational Land 30/06/15 - - 65,669 65,669 Footpaths 30/06/15 - - 33,819 33,819 Roads 30/06/15 - - 213,546 213,546 Stormwater Drainage 30/06/15 - - 93,052 93,052 Office Equipment & Furniture 30/06/15 - - 1,694 1,694 Plant & Equipment 30/06/15 - - 8,259 8,259 Open Space & Recreation 30/06/15 - - 49,062 49,062 Library Books and Resources 30/06/15 - - 1,140 1,140 Other Structure 30/06/15 - - 5,717 5,717 Other Assets 30/06/15 - - 2,910 2,910 Total Infrastructure, Property, Plant & Equipment - - 756,251 756,251

page140 67 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement

$ '000

(1) The following table presents all assets and liabilities that have been measured & recognised at fair values (continued): Fair Value Measurement Hierarchy 2014 Level 1 Level 2 Level 3 Total Date Quoted Significant Significant Recurring Fair Value Measurements of latest prices in observable unobservable Valuation active mkts inputs inputs Financial Assets Investments - "Held for Trading" 30/06/14 - - 10,640 10,640 Total Financial Assets - - 10,640 10,640

Investment Properties Investment Properties 30/06/14 - 30,350 93,850 124,200 Total Investment Properties - 30,350 93,850 124,200

Infrastructure, Property, Plant & Equipment Buildings - Non specialised 30/06/14 - - 68,732 68,732 Buildings Special 30/06/14 - - 59,906 59,906 Community Land 30/06/14 - - 145,835 145,835 Operational Land 30/06/14 - - 69,564 69,564 Footpaths 30/06/14 - - 28,684 28,684 Roads 30/06/14 - - 177,883 177,883 Stormwater Drainage 30/06/14 - - 72,497 72,497 Office Equipment & Furniture 30/06/14 - - 1,121 1,121 Plant & Equipment 30/06/14 - - 7,772 7,772 Open Space & Recreation 30/06/14 - - 49,860 49,860 Library Books and Resources 30/06/14 - - 1,152 1,152 Other Structure 30/06/14 - - 5,459 5,459 Other Assets DRAFT30/06/14 - - 4,214 4,214 Total Infrastructure, Property, Plant & Equipment - - 692,679 692,679

(2) Transfers between Level 1 & Level 2 Fair Value Hierarchies

During the year, there were no transfers between Level 1 and Level 2 Fair Value hierarchies for recurring fair value measurements.

page141 68

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement (continued)

(3) Valuation techniques used to derive Level 2 and Level 3 Fair Values

Where Council is unable to derive Fair Valuations using quoted market prices of identical assets (ie. Level 1 inputs), Council instead utilises a spread of both observable inputs (Level 2 inputs) and unobservable inputs (Level 3 inputs).

The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:

Financial Assets

At fair value through profit and loss are represented by Floating Rate Notes, Covered Bonds and Term Deposits. Council obtains valuations from its Investment Advisor on a monthly basis and at the end of each accounting period to ensure the financial statements reflect the most up to date valuation. The valuations of Floating Rate Notes are sourced base on mid-market prices. That is, valuations are marked at the mid-point of the bid and ask prices in the secondary market. This price represents a general market value for the asset. There has been no change to the valuation techniques during the reporting period.

Investment Properties

The valuation of Council’s investment properties was undertaken at June 2014 by Scott Fullarton Valuations Pty Ltd, FAPI, Certified Practising Valuer, Registration No. VAL2144.

Investment properties such as commercial units, commercial terraces and retail shops have been valued as market value, having regard to the “highest and best use”, taking in consideration the criteria of physical possibility, legal permissibility and financial feasibility. Implied within these criteria is the recognition of the contribution of that specific use to community environment or to community development goals, in addition to wealth maximisation to the individual owner.

The valuation technique utilised is Level 2 inputs (observable inputs), where applicable, included:

• Current rental income DRAFT • Rent reviews • Capitalisation rate • Price per square metre • Direct comparison to sales evidence • Zoning • Location • Land area and configuration • Planning controls

Other investment properties such as public car park and shopping centre office space have been valued using Cost approach with Level 3 valuation inputs. There has been no change to the valuation process during the reporting period.

page 69 142

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement (continued)

Operational Land

The asset class comprises all of Council’s land classified as Operational Land under the NSW Local Government Act 1993. The last valuation was undertaken at June 2013 and was performed by Scott Fullarton Valuations Pty Ld, FAPI, Certified Practising Valuer, Registration No. VAL2144.

Operational land has been valued at market value, having regard to the “highest and best use”, after identifying all elements that would be taken into account by buyers and sellers in settling the price, including but not limited to:

• The land’s description and/or dimensions; • Planning and other constraints on development; and • The potential for alternative use.

Sale prices of comparable land parcels in close proximity were adjusted for differences in key attributes such as size and configuration. The most significant inputs into this valuation approach are price per square metre. Since extensive professional judgements were required to determine the inputs these assets were classified as having been valued using Level 3 valuation input. There has been no change to the valuation process during the reporting period.

Community Land

Valuations of all Council’s Community Land and Council managed land were based on either the land value provided by the Valuer-General or an average unit rate based on land value for similar properties where the Valuer-General did not provide a land value having regard to the highest and best use for this land. As these rates were not considered to be observable market evidence they have been classified as Level 3. There has been no change to the valuation process during the reporting period.

Buildings – Non Specialised and Specialised DRAFT Council’s buildings were valued utilising the cost approach by Scott Fullarton Valuations Pty Ltd in June 2013. The approach estimated the replacement cost of each building and componentising of significant parts with different useful lives and taking into account a range of factors. The unit rates could be supported by market evidence (Level 2 inputs), other inputs (such as estimates of residual value, useful life and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such, these assets have been valued using Level 3 inputs. There has been no change to the valuation process during the reporting period.

Roads

The roads asset class includes roads, defined as the trafficable portion of a road, between but not including the kerb and gutter. It also includes “other roads” assets including Bridges, Carparks, Kerb and Gutter and Traffic facilities.

The ‘Cost Approach’ using Level 3 inputs was used to value the road carriageway and other road infrastructure. Valuations for the road carriageway, comprising surface, pavement and formation were based primarily on unit rates derived from the Councils schedule of rates tender. Other inputs (such as estimates pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value. Additionally due to limitations in the historical records of very long lived assets there some uncertainty regarding the actual design,

page 70 143

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement (continued)

specifications and dimensions of some assets. There has been no change to the valuation process during the reporting period.

Footpaths

The ‘Cost Approach’ using Level 3 inputs was used to value footpaths. Valuation for the footpath was based primarily on unit rates derived from the Councils schedule of rates tender. Other inputs (such as estimates pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value. Additionally due to limitations in the historical records of very long lived assets there some uncertainty regarding the actual design, specifications and dimensions of some assets. There has been no change to the valuation process during the reporting period.

Stormwater Drainage

Assets within this class comprise pits, pipes, open channels, headwalls and various types of water quality devices.

The ‘Cost Approach’ estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certain diameter pipes and prices per pit on similar could be supported from market evidence (Level 2) other inputs )such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value.

Additionally due to limitations in the historical records of very long lived assets there is uncertainty regarding the actual design, specifications and dimensions of some assets. There has been no change to the valuation process during the reporting period.

DRAFT Plant & Equipment, Office Equipment and Furniture & Fittings

Plant & Equipment, Office Equipment and Furniture & Fittings are valued at cost but are disclosed at fair value in the notes. The carrying amount of these assets is assumed to approximate fair value due to the nature of the items. Examples of assets within these classes are as follows:

• Plant and Equipment Trucks, tractors, ride on mowers, street sweepers, earthmoving equipment, buses and motor vehicles

• Office Equipment Refrigerators, electronic appliances, flat-screen monitors and computer equipment

• Furniture & Fittings Chairs, desks and display systems.

The key unobservable inputs to the valuation are the remaining useful life and residual value. Council reviews the value of these assets against quoted prices for the gross current replacement cost of similar assets and by taking account of the pattern of consumption, estimated remaining useful life and the residual value. There has been no change to the valuation process during the reporting period.

page 71 144

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement (continued)

Other Open Space / Recreational Assets

Assets within this class comprise Soft Fall Surfaces, BBQs, Regional Sporting Facilities and Playgrounds. All assets in this class were valued in-house by experienced engineering & asset management staff. While some elements of gross replacement values could be supported from market evidence (Level 2 input) other inputs (such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value. There has been no change to the valuation process during the reporting period. There has been no change to the valuation process during the reporting period.

Library Books and Resources

Library Books are valued at cost but are disclosed at fair value in the notes. The carrying amount of these assets is assumed to approximate fair value due to the nature of the items.

Council reviews the value of these assets against quoted prices for the gross current replacement cost of similar assets and by taking account of the pattern of consumption, estimated remaining useful life and the residual value. There has been no change to the valuation process during the reporting period.

Other Structures

This asset class comprises Mall Light, Shade Structure, Flag Pole, Planter Boxes and Garden Beds.

The cost approach has been utilised whereby the replacement cost was estimated for each asset by taking into account a range of factors. While some elements of gross replacement values could be supported from market evidence (Level 2 input) other inputs (such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value. As such there assets were all classified as having been valued using Level 3 valuation inputs. There has been no change to the valuation process during the reporting period. DRAFT

Other Assets

This asset class comprises trees and other miscellaneous assets.

page 72 145 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement (continued)

$ '000

(4). Fair value measurements using significant unobservable inputs (Level 3) a. The following tables present the changes in Level 3 Fair Value Asset Classes.

Class Investment Here Properties Buildings Land Total

Adoption of AASB 13 - 89,920 127,506 215,728 433,154 Purchases (GBV) - - 9,137 - 9,137 Disposals (WDV) - - (1,334) (329) (1,663) Depreciation & Impairment - - (6,670) - (6,670) FV Gains - Other Comprehensive Income - 3,930 - - 3,930

Closing Balance - 30/6/14 - 93,850 128,639 215,399 437,888

Adoption of AASB 13 - - - - - Purchases (GBV) - - - - - Disposals (WDV) - - - - - Depreciation & Impairment - - - - - FV Gains - Other Comprehensive Income - - - - -

Closing Balance - 30/6/15 - 93,850 128,639 215,399 437,888

Class Plant & Other Here Equipment Infrastructure Assets Total

Adoption of AASB 13 - 12,840 334,660 1,185 348,685 Transfers from/(to) another asset class - 7 7 (14) - Purchases (GBV) DRAFT - 2,514 8,427 211 11,152 Disposals (WDV) - (85) - - (85) Depreciation & Impairment - (2,174) (8,707) (229) (11,110)

Closing Balance - 30/6/14 - 13,102 334,387 1,153 348,642

Adoption of AASB 13 - - - - - Transfers from/(to) another asset class - - - - - Purchases (GBV) - - - - - Disposals (WDV) - - - - - Depreciation & Impairment - - - - -

Closing Balance - 30/6/15 - 13,102 334,387 1,153 348,642

page146 73

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement

4). Fair value measurements using significant unobservable inputs (Level 3) b. Significant unobservable valuation inputs used (for Level 3 asset classes) and their relationship to fair value.

The following table summarises the quantitative information relating to the significant unobservable inputs used in deriving the various Level 3 Asset Class fair values.

Financial Assets

Class Fair Valuation Unobservable Range of Inputs Relationship of Value Techniques Inputs (incl probable) unobservable (30/6/15) inputs to Fair Value $’000

Investments – At 13,711 Cost • Unit Price • $0.70 to $1.00 Significant changes in the estimated unit price would fair value through profit or loss result in significant changes to fair value measurement.

Investment Properties

Class Fair Valuation Unobservable Range of Inputs Relationship of Value Techniques Inputs (incl probable) unobservable (30/6/15) inputs to Fair Value $’000

Significant changes in the Commercial Office, 133,925 Cost • Estimated rental • 5% Retail and Carpark Value (rate per estimated rental value or square metre) yield would result in significant changes to fair • Rental Yield value measurement

I,PP&E DRAFT

Class Fair Valuation Unobservable Range of Inputs Relationship of Value Techniques Inputs (incl probable) unobservable (30/6/15) inputs to Fair Value $’000

Buildings 135,538 Cost • Gross replacement • Varies Significant changes in gross replacement value, cost asset condition or • Asset Condition • Very Poor to Excellent remaining useful life would • Remaining useful • 20 – 60 years result in significant life changes to fair value measurement.

Significant changes in Community Land 145,835 Cost • Price Per square • $2 – $2000 per metre square metre price per square metre would result in significant changes to fir value measurement

Significant changes in Operational Land 65,669 Cost • Price Per square • $ 600- $5,000 per price per square metre metre square metre would result in significant changes to fir value measurement

page 74 147

Financial Statements 2015_

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 27. Fair Value Measurement

Class Fair Valuation Unobservable Range of Inputs Relationship of Value Techniques Inputs (incl probable) unobservable (30/6/15) inputs to Fair Value $’000

Significant changes in Footpaths 33,818 Cost • Gross replacement • Varies gross replacement value, cost asset condition or • • Asset Condition Very Poor to Excellent remaining useful life would • Remaining useful • 25 – 100 years result in significant life changes to fair value measurement.

Significant changes in Roads 213,547 Cost • Gross replacement • Varies gross replacement value, cost asset condition or • • Asset Condition Very Poor to Excellent remaining useful life would • Remaining useful • 25 – 100 years result in significant life changes to fair value measurement.

Significant changes in Stormwater 93,052 Cost • Gross replacement • Varies gross replacement value, Drainage cost asset condition or • • Asset Condition Very Poor to Excellent remaining useful life would • Remaining useful • 25 – 100 years result in significant life changes to fair value measurement.

Significant changes in Plant & Equipment 8,259 Cost • Gross replacement • Varies gross replacement value cost or remaining useful life • • Remaining useful 2 - 20 years would result in significant life changes to fair value measurement.

Significant changes in Open Space & 49,062 Cost • Gross replacement • Varies gross replacement value, Recreation cost asset condition or • • Asset Condition Very Poor to Excellent remaining useful life would DRAFT• Remaining useful • 10 – 100 years result in significant life changes to fair value measurement.

Significant changes in Library Books and 1,140 Cost • Gross replacement • Varies gross replacement value Resource cost or remaining useful life • • Remaining useful 5 years would result in significant life changes to fair value measurement.

Significant changes in Other Structures 5,717 Cost • Gross replacement • Varies gross replacement value, cost asset condition or • • Asset Condition Very Poor to Excellent remaining useful life would • Remaining useful • 10 – 100 years result in significant life changes to fair value measurement.

Significant changes in Other Assets 2,910 Cost • Gross replacement • Varies gross replacement value cost or remaining useful life • • Remaining useful 2 - 20 years would result in significant life changes to fair value measurement.

(5). Highest and best use

All assets valued at fair value in this note are being used for their highest and best use.

page 75 148 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 28. Financial Review (continued)

$ '000

Key Financial Figures of Council over the past 5 years (consolidated)

Financial Performance Figures 2015 2014 2013 2012 2011

Inflows: Rates & Annual Charges Revenue 54,467 52,867 47,283 41,608 38,673 User Charges Revenue 32,705 31,977 28,222 25,483 24,610 Interest & Investment Revenue (Losses) 2,890 2,637 2,647 3,054 3,016 Grants Income - Operating & Capital 8,409 6,192 6,972 8,597 7,238 Total Income from Continuing Operations 180,021 123,078 115,462 100,702 93,857

Sale Proceeds from I,PP&E 83,149 167 10,315 53 94 New Loan Borrowings & Advances - - 2,500 - -

Outflows: Employee Benefits & On-cost Expenses 56,269 54,229 50,682 48,500 47,966 Borrowing Costs 153 189 194 246 327 Materials & Contracts Expenses 24,884 17,974 17,301 15,762 16,232 Total Expenses from Continuing Operations 120,322 113,026 105,122 100,376 98,631

Total Cash purchases of I,PP&E 21,855 24,093 22,819 15,855 13,904 Total Loan Repayments (incl. Finance Leases) 1,118 1,252 1,400 1,185 1,345

Operating Surplus/(Deficit) (excl. Capital Income) 52,754 187 3,538 (4,588) (9,697)

Financial Position Figures DRAFT2015 2014 2013 2012 2011 Current Assets 110,974 95,600 88,045 66,129 41,563 Current Liabilities 33,306 39,860 33,714 32,254 32,411 Net Current Assets 77,668 55,740 54,331 33,875 9,152

Available Working Capital 13,038 30,885 42,001 26,638 5,503 (Unrestricted Net Current Assets)

Cash & Investments - Unrestricted 1,879 2,077 6,427 6,227 3,041 Cash & Investments - Internal Restrictions 112,376 41,536 34,584 27,491 32,981 Cash & Investments - Total 130,171 57,013 51,588 43,168 45,356

Total Borrowings Outstanding 1,917 3,035 4,287 3,187 4,372 (Loans, Advances & Finance Leases)

Total Value of I,PP&E (excl. Land & Earthworks) 885,634 831,810 811,780 756,362 742,996 Total Accumulated Depreciation 336,903 341,621 331,883 313,736 297,513 Indicative Remaining Useful Life (as a % of GBV) 62% 59% 59% 59% 60%

Source: Published audited financial statements of Council (current year & prior year) page149 76 Financial Statements 2015

Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2015

Note 29. Council Information & Contact Details

Principal Place of Business: Cnr. Paul St and Bondi Rd Bondi Junction NSW 2022

Contact Details Mailing Address: Opening Hours: PO Box 9 Customer Service Centre Bondi Junction NSW 1355 55 Spring Street, Bondi Junction Monday to Friday 8:30am to 5:00pm

Telephone: 02 9369 8000 Internet: www.waverley.nsw.gov.au Facsimile: 02 9387 1820 Email: [email protected]

Officers Elected Members GENERAL MANAGER MAYOR Athanasios (Arthur) Kyron Sally Betts

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORS Francesco Rombola Clr Andrew Cusack Clr Angela Burrill PUBLIC OFFICER Clr Bill Mouroukas Robert Russo Clr Dominic Wy Kanak Clr Ingrid Strewe AUDITORS Clr John Wakefield Hill Rogers Spencer Steer, Chartered AccountantsDRAFTClr Joy Clayton Level 5, 1 Chifley Square, Sydney Clr Leon Goltsman Clr Miriam Guttman-Jones Clr Paula Masselos Clr Tony Kay

Other Information ABN: 12 502 583 608

page150 77 DRAFT

Waverley Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2015

"We are united by a common passion for our beautiful home between the city and the sea."

151 SPFS 2015

Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2015

Contents Page

1. Statement by Councillors & Management 2

2. Special Purpose Financial Statements:

Income Statement - Water Supply Business Activity n/a Income Statement - Sewerage Business Activity n/a Income Statement - Other Business Activities 3

Statement of Financial Position - Water Supply Business Activity n/a Statement of Financial Position - Sewerage Business Activity n/a Statement of Financial Position - Other Business Activities 5

3. Notes to the Special Purpose Financial Statements 7

4. Auditor's Report 12

DRAFT Background

(i) These Special Purpose Financial Statements have been prepared for the use by both Council and the Division of Local Government in fulfilling their requirements under National Competition Policy.

(ii) The principle of competitive neutrality is based on the concept of a "level playing field" between persons/entities competing in a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, State or Local, should operate without net competitive advantages over other businesses as a result of their public ownership.

(iii) For Council, the principle of competitive neutrality & public reporting applies only to declared business activities.

These include (a) those activities classified by the Australian Bureau of Statistics as business activities being water supply, sewerage services, abattoirs, gas production and reticulation and (b) those activities with a turnover of over $2 million that Council has formally declared as a Business Activity (defined as Category 1 activities).

(iv) In preparing these financial statements for Council's self classified Category 1 businesses and ABS defined activities, councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax equivalent regime payments & debt guarantee fees (where the business benefits from councils borrowing position by comparison with commercial rates).

page152 1 SPFS 2015

Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2015

Statement by Councillors and Management made pursuant to the Local Government Code of Accounting Practice and Financial Reporting

The attached Special Purpose Financial Statements have been prepared in accordance with:

 The NSW Government Policy Statement “Application of National Competition Policy to Local Government”.

 The Division of Local Government Guidelines “Pricing & Costing for Council Businesses - A Guide to Competitive Neutrality”.

 The Local Government Code of Accounting Practice and Financial Reporting.

 The NSW Office of Water (Department of Environment, Climate Change and Water) Guidelines - "Best Practice Management of Water and Sewerage".

To the best of our knowledge and belief, these Financial Statements:

 Present fairly the Operating Result and Financial Position for each of Council's declared Business Activities for the year, and

 Accord with Council’s accounting and other records.

We are not aware of any matter that would render these Statements false or misleading in any way. Signed in accordance with a resolutionDRAFT of Council made on 20 October 2015.

Sally Betts Name required…(via parameters tab) MAYOR COUNCILLOR

Athanasios (Arthur) Kyron Francesco Rombola GENERAL MANAGER RESPONSIBLE ACCOUNTING OFFICER

page153 2 SPFS 2015

Waverley Council

Income Statement of Council's Other Business Activities for the financial year ended 30 June 2015

Property Commercial Waste

Category 1 Category 1 Actual Actual Actual Actual $ '000 2015 2014 2015 2014

Income from continuing operations Access charges - - - - User charges 8,036 7,022 3,050 2,766 Fees - - - - Interest - - - - Grants and contributions provided for non capital purposes - - - - Profit from the sale of assets - - - - Other income 9,724 1,320 - 32 Total income from continuing operations 17,760 8,342 3,050 2,798

Expenses from continuing operations Employee benefits and on-costs 425 492 1,026 957 Borrowing costs - - - - Materials and contracts 1,081 955 42 36 Depreciation and impairment 236 150 36 37 Loss on sale of assets - - - - Calculated taxation equivalents - - - - Debt guarantee fee (if applicable) - - - - Other expenses 821 760 1,543 1,563 Total expenses from continuing operations 2,563 2,357 2,647 2,593 Surplus (deficit) from Continuing Operations before capital amounts 15,197 5,985 403 205

Grants and contributions provided for capital purposes - - - - Surplus (deficit) from Continuing OperationsDRAFT after capital amounts 15,197 5,985 403 205 Surplus (deficit) from discontinued operations - - - - Surplus (deficit) from ALL Operations before tax 15,197 5,985 403 205 less: Corporate Taxation Equivalent (30%) [based on result before capital] (4,559) (1,796) (121) (62)

SURPLUS (DEFICIT) AFTER TAX 10,638 4,190 282 144 plus Opening Retained Profits 124,258 117,899 122 114 plus/less: Prior Period Adjustments - - - - plus Adjustments for amounts unpaid: - Taxation equivalent payments - - - - - Debt guarantee fees - - - - - Corporate taxation equivalent 4,559 1,796 121 62 add: - Subsidy Paid/Contribution To Operations - 374 - - less: - TER dividend paid - - - - - Dividend paid (5,668) - (213) (197) Closing Retained Profits 133,787 124,258 312 122

Return on Capital % n/a n/a 620.0% 585.7% Subsidy from Council - - - -

page154 3 SPFS 2015

Waverley Council

Income Statement of Council's Other Business Activities for the financial year ended 30 June 2015

Cemetery

0 Category 2 Actual Actual $ '000 2015 2014

Income from continuing operations Access charges - - User charges 1,574 1,280 Fees - - Interest 98 69 Grants and contributions provided for non capital purposes - - Profit from the sale of assets - - Other income 3 2 Total income from continuing operations 1,675 1,351

Expenses from continuing operations Employee benefits and on-costs 693 640 Borrowing costs - - Materials and contracts 570 448 Depreciation and impairment 477 61 Loss on sale of assets - - Calculated taxation equivalents - - Debt guarantee fee (if applicable) - - Other expenses 95 98 Total expenses from continuing operations 1,835 1,247 Surplus (deficit) from Continuing Operations before capital amounts (160) 104

Grants and contributions provided for capital purposes - - Surplus (deficit) from Continuing OperationsDRAFT after capital amounts (160) 104 Surplus (deficit) from discontinued operations - - Surplus (deficit) from ALL Operations before tax (160) 104 less: Corporate Taxation Equivalent (30%) [based on result before capital] - (31)

SURPLUS (DEFICIT) AFTER TAX (160) 73 plus Opening Retained Profits 18,292 18,551 plus/less: Prior Period Adjustments - - plus Adjustments for amounts unpaid: - Taxation equivalent payments - - - Debt guarantee fees - - - Corporate taxation equivalent - 31 add: - Subsidy Paid/Contribution To Operations - - less: - TER dividend paid - - - Dividend paid (920) (363) Closing Retained Profits 17,212 18,292

Return on Capital % -0.5% 0.4% Subsidy from Council 1,085 942

page155 4 SPFS 2015

Waverley Council

Statement of Financial Position - Council's Other Business Activities as at 30 June 2015

Property Commercial Waste

Category 1 Category 1 Actual Actual Actual Actual $ '000 2015 2014 2015 2014

ASSETS Current Assets Cash and cash equivalents - - - - Investments - - - - Receivables - 245 318 151 Inventories - - - - Other - - - - Non-current assets classified as held for sale - - - - Total Current Assets - 245 318 151

Non-Current Assets Investments - - - - Receivables - - - - Inventories - - - - Infrastructure, property, plant and equipment - - 65 35 Investment property 133,925 124,200 - - Intangible Assets - - - - Other - - - - Total Non-Current Assets 133,925 124,200 65 35 TOTAL ASSETS 133,925 124,445 383 186

LIABILITIES Current Liabilities Bank Overdraft - - - - Payables DRAFT - - - - Interest bearing liabilities - - - - Provisions 61 110 71 64 Total Current Liabilities 61 110 71 64

Non-Current Liabilities Payables - - - - Interest bearing liabilities - - - - Provisions - - - - Other Liabilities - - - - Total Non-Current Liabilities - - - - TOTAL LIABILITIES 61 110 71 64 NET ASSETS 133,864 124,335 312 122

EQUITY Retained earnings 133,787 124,258 312 122 Revaluation reserves 77 77 - - Council equity interest 133,864 124,335 312 122 Non-controlling equity interest - - - - TOTAL EQUITY 133,864 124,335 312 122 page156 5 SPFS 2015

Waverley Council

Statement of Financial Position - Council's Other Business Activities as at 30 June 2015

Cemetery

Category 2 Actual Actual $ '000 2015 2014

ASSETS Current Assets Cash and cash equivalents 1,980 1,823 Investments - - Receivables 5 11 Inventories - - Other - - Non-current assets classified as held for sale - - Total Current Assets 1,985 1,834

Non-Current Assets Investments - - Receivables - - Inventories - - Infrastructure, property, plant and equipment 30,628 29,395 Investment property - - Intangible Assets - - Other - - Total Non-Current Assets 30,628 29,395 TOTAL ASSETS 32,613 31,229

LIABILITIES Current Liabilities Bank Overdraft - - Payables DRAFT - - Interest bearing liabilities - - Provisions 96 154 Total Current Liabilities 96 154

Non-Current Liabilities Payables - - Interest bearing liabilities - - Provisions - - Other Liabilities - - Total Non-Current Liabilities - - TOTAL LIABILITIES 96 154 NET ASSETS 32,517 31,075

EQUITY Retained earnings 17,212 18,292 Revaluation reserves 15,305 12,783 Council equity interest 32,517 31,075 Non-controlling equity interest - - TOTAL EQUITY 32,517 31,075 page157 6 SPFS 2015

Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2015

Contents of the Notes accompanying the Financial Statements

Note Details Page

1 Summary of Significant Accounting Policies 8

2 Water Supply Business Best Practice Management disclosure requirements n/a

3 Sewerage Business Best Practice Management disclosure requirements n/a

DRAFT

page158 7

SPFS 2015_

Waverley Council

Notes to the Special Purpose Financial Statements for the financial year ended 30 June 2015

Note 1. Significant Accounting Policies

These financial statements are a Special Purpose The pricing & costing guidelines outline the process Financial Statements (SPFS) prepared for use by for identifying and allocating costs to activities and Council and the Office of Local Government. provide a standard of disclosure requirements. These disclosures are reflected in Council’s pricing For the purposes of these statements, the Council is and/or financial reporting systems and include not a reporting not-for-profit entity. taxation equivalents; council subsidies; return on investments (rate of return); and dividends paid. The figures presented in these special purpose financial statements, unless otherwise stated, have been prepared in accordance with: Declared Business Activities

. the recognition and measurement criteria of In accordance with Pricing & Costing for Council relevant Australian Accounting Standards, Businesses - A Guide to Competitive Neutrality, Council has declared that the following are to be . other authoritative pronouncements of the considered as business activities: Australian Accounting Standards Board (AASB) &

. Australian Accounting Interpretations. Category 1

(where gross operating turnover is over $2 million) The disclosures in these special purpose financial statements have been prepared in accordance with: a. Waverley Council Property Services

. the Local Government Act and Regulation, and Comprising the whole of the operations and assets of the property services, commercial . the Local Government Code of Accounting properties controlled by Waverley Council. Practice and Financial Reporting. b. Waverley Council Trade Waste Services The statements are also prepared on an accruals basis, based on historic costs and do not take into Comprising the whole of the operations and account changing money values nor current values assets of the commercial waste services which of non-current assets (except where specifically service the area of Waverley. stated). DRAFTThis service collects and disposes of waste Certain taxes and other costs (appropriately collected from commercial premises. described) have been imputed for the purposes of the National Competition Policy. Category 2

(where gross operating turnover is less than $2 million) National Competition Policy a. Waverley & South Head Cemeteries Council has adopted the principle of ‘competitive neutrality’ to its business activities as part of the Comprising the whole of the operations and national competition policy which is being applied assets of both the Waverley & South Head throughout Australia at all levels of government. Cemeteries.

The framework for its application is set out in the This business operates from offices located at June 1996 Government Policy statement on the Waverley Cemetery dealing with maintenance, “Application of National Competition Policy to Local sales and burials. Government”. Monetary Amounts The “Pricing & Costing for Council Businesses A Guide to Competitive Neutrality” issued by the Office Amounts shown in the financial statements are in of Local Government in July 1997 has also been Australian currency and rounded to the nearest one adopted. thousand dollars.

page 8 159

SPFS 2015_

Waverley Council

Notes to the Special Purpose Financial Statements for the financial year ended 30 June 2015

Note 1. Significant Accounting Policies

(i) Taxation Equivalent Charges Income Tax is only applied where a positive gain/(loss) from ordinary activities before capital Council is liable to pay various taxes and financial amounts has been achieved. duties in undertaking its business activities. Where this is the case, they are disclosed in these Since this taxation equivalent is notional - that is, it is statements as a cost of operations just like all other payable to the “Council” as the owner of business costs. operations, it represents an internal payment and has no effect on the operations of the council. However, where Council is exempt from paying taxes Accordingly, there is no need for disclosure of which are generally paid by private sector internal charges in Council's General Purpose businesses (such as income tax), equivalent tax Financial Statements. payments have been applied to all Council nominated business activities and are reflected in The rate applied of 30% is the equivalent company these financial statements. tax rate prevalent as at balance date. No adjustments have been made for variations that have For the purposes of disclosing comparative occurred during the year. information relevant to the private sector equivalent, the following taxation equivalents have been applied to all council nominated business activities (this does Local Government Rates & Charges not include council’s non-business activities): A calculation of the equivalent rates and charges Notional Rate Applied % payable on all Category 1 businesses has been applied to all land assets owned or exclusively used Corporate Income Tax Rate – 30% by the Business Activity.

Land Tax – The first $432,000 of combined land values attracts 0%. From $432,001 to $2,641,000 the Loan & Debt Guarantee Fees rate is 1.6% + $100. For the remaining combined land value that exceeds $2,641,000, a premium The debt guarantee fee is designed to ensure that marginal rate of 2.0% applies. council business activities face “true” commercial borrowing costs in line with private sector Payroll Tax – 5.45% on the value of taxableDRAFT salaries competitors. and wages in excess of $750,000. In order to calculate a debt guarantee fee, council has determined what the differential borrowing rate Income Tax would have been between the commercial rate and the council’s borrowing rate for its business activities. An income tax equivalent has been applied on the profits of each reported Business Activity. (ii) Subsidies Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be Government policy requires that subsidies provided taken into account of in terms of assessing the rate to customers and the funding of those subsidies of return required on capital invested. must be explicitly disclosed.

Accordingly, the return on capital invested is set at a Subsidies occur where council provides services on pre-tax level (gain/(loss) from ordinary activities a less than cost recovery basis. This option is before capital amounts) as would be applied by a exercised on a range of services in order for council private sector competitor – that is, it should include a to meet its community service obligations. provision equivalent to the corporate income tax rate, currently 30%. Accordingly, Subsidies disclosed (in relation to National Competition Policy) represents the difference between revenue generated from ‘rate of

page 9 160

SPFS 2015_

Waverley Council

Notes to the Special Purpose Financial Statements for the financial year ended 30 June 2015

Note 1. Significant Accounting Policies

return’ pricing and revenue generated from prices set by the council in any given financial year.

The overall effect of subsidies is contained within the Income Statement of each reported Business Activity.

(iii) Return on Investments (Rate of Return)

The Policy statement requires that councils with Category 1 businesses “would be expected to generate a return on capital funds employed that is comparable to rates of return for private businesses operating in a similar field”.

Such funds are subsequently available for meeting commitments or financing future investment strategies.

The Rate of Return on Capital is calculated as follows:

Operating Result before Capital Income + Interest Expense

Written Down Value of I,PP&E as at 30 June

As a minimum, business activities should generate a return equal to the Commonwealth 10 yearDRAFT bond rate which is 3.02% at 30/6/15.

The actual rate of return achieved by each Business Activity is disclosed at the foot of each respective Income Statement.

(iv) Dividends

Council is not required to pay dividends to either itself (as owner of a range of businesses) or to any external entities.

page 10 161 DRAFT

Waverley Council SPECIAL SCHEDULES for the year ended 30 June 2015

"We are united by a common passion for our beautiful home between the city and the sea."

162 Special Schedules 2015

Waverley Council

Special Schedules for the financial year ended 30 June 2015

Contents Page

Special Schedules1

- Special Schedule No. 1 Net Cost of Services 2

- Special Schedule No. 2(a) Statement of Long Term Debt (all purposes) 4 - Special Schedule No. 2(b) Statement of Internal Loans (Sect. 410(3) LGA 1993) 5

- Special Schedule No. 3 Water Supply Operations - incl. Income Statement n/a - Special Schedule No. 4 Water Supply - Statement of Financial Position n/a

- Special Schedule No. 5 Sewerage Service Operations - incl. Income Statement n/a - Special Schedule No. 6 Sewerage Service - Statement of Financial Position n/a

- Notes to Special Schedules No. 3 & 5 n/a

- Special Schedule No. 7 Report on Infrastructure Assets (as at 30 June 2015) 6

- Special Schedule No. 8 Financial Projections n/a

- Special Schedule No. 9 Permissible Income Calculation 9

DRAFT

1 Special Schedules are not audited (with the exception of Special Schedule 9).

Background

(i) These Special Schedules have been designed to meet the requirements of special purpose users such as;

 the NSW Grants Commission  the Australian Bureau of Statistics (ABS),  the NSW Office of Water (NOW), and  the Office of Local Government (OLG).

(ii) The financial data is collected for various uses including;

 the allocation of Financial Assistance Grants,  the incorporation of Local Government financial figures in national statistics,  the monitoring of loan approvals,  the allocation of borrowing rights, and  the monitoring of the financial activities of specific services.

page163 1 Special Schedules 2015

Waverley Council

Special Schedule No. 1 - Net Cost of Services for the financial year ended 30 June 2015

$'000 Expenses from. Income from Net Cost. Function or Activity Continuing. continuing operations of Services. Operations. Non Capital. Capital.

Governance - - - -

Administration 28,213 62,123 893 34,803

Public Order and Safety Fire Service Levy, Fire Protection, Emergency Services 2,002 105 - (1,897) Beach Control 3,823 807 - (3,016) Enforcement of Local Govt. Regulations 1,353 74 - (1,279) Animal Control 55 37 - (18) Other - - - - Total Public Order & Safety 7,233 1,023 - (6,210)

Health 963 338 - (625)

Environment Noxious Plants and Insect/Vermin Control 9 - - (9) Other Environmental Protection 1,486 153 - (1,333) Solid Waste Management 16,388 17,774 - 1,386 Street Cleaning 3,475 - - (3,475) Drainage 1,400 - - (1,400) Stormwater Management - - - - Total Environment 22,758 17,927 - (4,831)

Community Services and Education Administration & Education 1,425 91 - (1,334) Social Protection (Welfare) 104 - - (104) Aged Persons and Disabled DRAFT 1,758 1,297 - (461) Children's Services 7,102 7,398 - 296 Total Community Services & Education 10,389 8,786 - (1,603)

Housing and Community Amenities Public Cemeteries 1,422 1,577 - 155 Public Conveniences 122 51 - (71) Street Lighting 966 174 - (792) Town Planning 7,293 4,353 4,996 2,056 Other Community Amenities 170 - - (170) Total Housing and Community Amenities 9,973 6,155 4,996 1,178

Water Supplies - - - -

Sewerage Services - - - -

page164 2 Special Schedules 2015

Waverley Council

Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2015

$'000 Expenses from. Income from Net Cost. Function or Activity Continuing. continuing operations of Services. Operations. Non Capital. Capital.

Recreation and Culture Public Libraries 5,814 289 - (5,525) Museums - - - - Art Galleries 23 - - (23) Community Centres and Halls 24 - - (24) Performing Arts Venues - - - - Other Performing Arts - - - - Other Cultural Services 4,159 644 300 (3,215) Sporting Grounds and Venues 1,529 261 - (1,268) Swimming Pools 257 - - (257) Parks & Gardens (Lakes) 7,215 205 72 (6,938) Other Sport and Recreation 35 34 - (1) Total Recreation and Culture 19,056 1,433 372 (17,251)

Fuel & Energy - - - -

Agriculture - - - -

Mining, Manufacturing and Construction Building Control 2,039 1,676 - (363) Other Mining, Manufacturing & Construction - - - - Total Mining, Manufacturing and Const. 2,039 1,676 - (363)

Transport and Communication Urban Roads (UR) - Local 6,617 536 681 (5,400) Urban Roads - Regional - - - - Sealed Rural Roads (SRR) - Local - - - - Sealed Rural Roads (SRR) - Regional - - - - Unsealed Rural Roads (URR) - Local - - - - Unsealed Rural Roads (URR) - Regional DRAFT - - - - Bridges on UR - Local - - - - Bridges on SRR - Local - - - - Bridges on URR - Local - - - - Bridges on Regional Roads - - - - Parking Areas 9,749 25,199 - 15,450 Footpaths 2,714 - 3 (2,711) Aerodromes - - - - Other Transport & Communication 11 1,311 - 1,300 Total Transport and Communication 19,091 27,046 684 8,639

Economic Affairs Camping Areas & Caravan Parks - - - - Other Economic Affairs 607 1,585 - 978 Total Economic Affairs 607 1,585 - 978 Totals – Functions 120,322 128,092 6,945 14,715 General Purpose Revenues (2) 44,984 44,984 Share of interests - joint ventures & associates using the equity method - - - (1) NET OPERATING RESULT 120,322 173,076 6,945 59,699

(1) As reported in the Income Statement (2) Includes: Rates & Annual Charges (incl. Ex Gratia, excl. Water & Sewer), Non Capital General Purpose Grants, Interest on Investments (excl. Ext. Restricted Assets) & Interest on overdue Rates & Annual Charges page165 3 Special Schedules 2015 Waverley Council

Special Schedule No. 2(a) - Statement of Long Term Debt (all purpose) for the financial year ended 30 June 2015

$'000 Principal outstanding New Debt redemption Principal outstanding at beginning of the year Loans during the year Transfers Interest at the end of the year raised to Sinking applicable Non From Sinking Non Current Total during Funds for Year Current Total Classification of Debt Current the year Revenue Funds Current

Loans (by Source) Commonwealth Government - - - - - Treasury Corporation - - - - - Other State Government - - - - - Public Subscription - - - - - Financial Institutions 1,117 1,900 3,017 - 1,118 - - 142 836 1,063 1,899 Other - 18 18 ------18 18 Total Loans 1,117 1,918 3,035 - 1,118 - - 142 836 1,081 1,917

Other Long Term Debt Ratepayers Advances - - - - - Government Advances - - DRAFT - - - Finance Leases - - - - - Deferred Payments - - - - - Total Long Term Debt ------Special Schedules 2015 Schedules Special Total Debt 1,117 1,918 3,035 - 1,118 - - 142 836 1,081 1,917

Notes: Excludes (i) Internal Loans & (ii) Principal Inflows/Outflows relating to Loan Re-Financing. page 4 This Schedule is prepared using the face value of debt obligations, rather than fair value (which are reported in the GPFS). page166 4 Special Schedules 2015 Waverley Council

Special Schedule No. 2(b) - Statement of Internal Loans [Section 410(3) LGA 1993] for the financial year ended 30 June 2015

$'000

Summary of Internal Loans

Total repaid during the year Principal Outstanding Borrower (by purpose) Amount originally raised (Principal & Interest) at end of year

General 2,815 525 3,391 Water Sewer Domestic Waste Management Gas Other

Totals 2,815 525 3,391 Note: The summary of Internal Loans (above) represents the total of DRAFTCouncil's Internal Loans categorised according to the borrower. Details of Individual Internal Loans

Date of Amount Total repaid Principal Borrower Lender Minister's Date Raised Term Dates of Rate of Originally during year Outstanding (by purpose) (by purpose) Approval (years) Maturity Interest raised (Princ. & Int.) at end of year General Domestic 12/01/11 30/11/10 10 30/06/20 4.83% 817 103 397 2015 Schedules Special Waste 12/01/11 30/11/11 10 30/06/21 4.88% 677 82 444 Management 12/01/11 30/11/12 10 30/06/22 3.22% 666 76 488 12/01/11 30/11/13 10 30/06/23 2.94% 655 75 539 12/01/11 30/11/14 10 30/06/24 2.77% 1,671 189 1,523 page 5 Totals 4,486 525 3,391 page167 5 Special Schedules 2015 Waverley Council

Special Schedule No. 7 - Report on Infrastructure Assets as at 30 June 2015

$'000

Estimated cost to bring up to a Required Actual Written Assets in Condition as a % of WDV satisfactory Annual Maintenance Down Value standard Maintenance 2014/15 (WDV) 1 2 3 4 5 Asset Class Asset Category refer (1) refer (2) refer (3) refer (4) refer (4) & (5) Buildings Council Offices / Administration Centres - 239 257 10,235 100% 0% Council Works Depot - 191 274 11,148 98% 2% 0% Council Public Halls - 149 121 26,314 90% 10% 0% Libraries - 206 220 27,259 100% 0% Cultural Facilities - 440 535 13,051 4% 88% 8% 0% Other Buildings - 906 898 43,205 89% 11% 0% Specialised Buildings - 463 267 4,326 74% 26% 0% sub total - 2,594 2,572 135,538 8.4% 84.5% 7.0% 0.0% 0.0% Other Structures Other Structures 1,800 195 81 5,717 48% 17% 8% 27% 0% sub total 1,800 195 81 5,717 48.0% 17.0% 8.0% 27.0% 0.0% Roads Sealed Roads Surface 1,475 DRAFT 4,006 3,403 56,347 36% 55% 7% 2% 0% Sealed Roads Structure - - - 72,069 100% 0% Footpaths 1,750 1,839 1,327 33,818 50% 35% 14% 1% 0% Kerb and Gutter 807 35 57 67,458 47% 36% 14% 3% 0% Other Road Assets 264 345 220 17,673 43% 47% 9% 1% 0% p Spe a pag sub total 4,296 6,225 5,007 247,365 30.9% 30.5% 37.1% 1.5% 0.0% Stormwater Stormwater Conduits 251 76 55 75,523 12% 71% 17% 0% Drainage Inlet and Junction Pits 57 332 242 17,529 21% 75% 4% 0% sub total 308 408 297 93,052 13.7% 71.8% 14.6% 0.0% 0.0% Open Space/ Other Open Space/Recreation Recreational Assets 1,690 5,864 5,822 49,062 32% 43% 23% 2% 0% p Spe Assets sub total 1,690 5,864 5,822 49,062 32.0% 43.0% 23.0% 2.0% 0.0% page168 6 Special Schedules 2015 Waverley Council

Special Schedule No. 7 - Report on Infrastructure Assets (continued) as at 30 June 2015

$'000

TOTAL - ALL ASSETS 8,094 15,286 13,779 530,734 22.4% 52.5% 23.9% 1.2% 0.0%

Notes: (1). Satisfactory is defined as “satisfying expectations or needs, leaving no room for complaint, causing satisfaction, adequate”. The estimated cost to bring assets to a satisfactory standard is the amount of money that is required to be spent on an asset to ensure that it is in a satisfactory standard. This estimated cost should not include any planned enhancements (ie.to heighten, intensify or improve the facilities). (2). Required Annual Maintenance is “what should be spent to maintain assets in a satisfactory standard. (3). Actual Maintenance is what has been spent in the current year to maintain the assets. Actual Maintenance may be higher or lower than the required annual maintenance due to the timing of when the maintenance actually occurs. (4). Written Down Value is in accordance with Note 9 of Council's General PurposeDRAFT Financial Statements (5). Infrastructure Asset Condition Assessment "Key"

1 Excellent No work required (normal maintenance) 6 Condition Description here… 2 Good Only minor maintenance work required 7 Condition Description here… Special Schedules 2015 Schedules Special 3 Average Maintenance work required 8 Condition Description here… 4 Poor Renewal required 9 Condition Description here… 5 Very Poor Urgent renewal/upgrading required 10 Condition Description here… page xx

page169 7 Special Schedules 2015

Waverley Council

Special Schedule No. 7 - Report on Infrastructure Assets (continued) for the financial year ended 30 June 2015

Amounts Indicator Prior Periods $ '000 2015 2015 2014 2013

Infrastructure Asset Performance Indicators Consolidated

1. Building, Infrastructure & Other Structures Renewals Ratio Asset Renewals (Building, Infrastructure & Other Structures) (1) 9,176 58.91% 62.68% 60.35% Depreciation, Amortisation & Impairment 15,576

2. Infrastructure Backlog Ratio Estimated Cost to bring Assets to a Satisfactory Condition 8,094 (2) 1.53% 2.62% 2.00% Total value of Infrastructure, Building, Other Structures 530,734 & depreciable Land Improvement Assets

3. Asset Maintenance Ratio Actual Asset Maintenance 13,779 0.90 1.17 1.03 Required Asset Maintenance 15,286

4. Capital Expenditure Ratio Annual Capital Expenditure 11,323 0.63 1.53 1.51 Annual Depreciation 17,876 DRAFT Notes (1) Asset Renewals represent the replacement &/or refurbishment of existing assets to an equivalent capacity/performance

as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

Asset Renewals include building, infrastructure & Other Structure assets only.

(2) Written Down Value

page170 8 Special Schedules 2015

Waverley Council

Special Schedule No. 9 - Permissible Income Calculation for the financial year ended 30 June 2016

Calculation Calculation $'000 2014/15 2015/16

Notional General Income Calculation (1)

Last Year Notional General Income Yield a 40,186 41,354 (2) Plus or minus Adjustments b 220 (47) Notional General Income c = (a + b) 40,406 41,307

Permissible Income Calculation (3) Special variation percentage d 0.00% 0.00% or Rate peg percentage e 2.30% 2.40% or Crown land adjustment (incl. rate peg percentage) f 0.00% 0.00%

less expiring Special variation amount g - - plus Special variation amount h = d x (c-g) - - or plus Rate peg amount i = c x e 929 991 or plus Crown land adjustment and rate peg amount j = c x f - - sub-total k = (c+g+h+i+j) 41,335 42,298

plus (or minus) last year's Carry Forward Total l 11 (8) less Valuation Objections claimed in the previous year m - - sub-total n = (l + m) 11 (8)

Total Permissible income o = k + n 41,346 42,291

less Notional General Income Yield p 41,354 42,315 Catch-up or (excess) result q = o - p (8) (24)

(4) plus Income lost due to valuation objections claimed r - - (5) less Unused catch-up DRAFTs - - Carry forward to next year t = q + r - s (8) (24)

Notes

1 The Notional General Income will not reconcile with rate income in the financial statements in the corresponding year. The statements are reported on an accrual accounting basis which include amounts that relate to prior years' rates income.

2 Adjustments account for changes in the number of assessments and any increase or decrease in land value occurring during the year. The adjustments are called "supplementary valuations" as defined in the Valuation of Land Act 1916.

3 The Special Variation Percentage is inclusive of the Rate Peg percentage and where applicable crown land adjustment.

4 Valuation objections are unexpected changes in land values as a result of land owners successfully objecting to the land value issued by the Valuer-General. Councils can claim the value of the income lost due to valuation objections in any single year.

5 Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils will have a nominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

6 Carry forward amounts which are in excess (an amount that exceeds the permissible income) require Ministerial approval by order published in the NSW Government Gazette in accordance with section 512 of the Local Government Act 1993. The OLG will extract these amounts from councils’ Special Schedule 9 in the Financial Data Return (FDR) to administer this process. page171 9 Special Schedules 2015

Waverley Council

Special Schedule No. 9 - Independent Auditors Report for the financial year ended 30 June 2016

Report on Special Schedule No. 9

We have audited the accompanying special purpose financial statement comprising the reconciliation of total permissible general income (Special Schedule No. 9) of Waverley Council for the year ending 30 June 2016.

Responsibility of Council for Special Schedule No. 9

The Council is responsible for the preparation and fair presentation of Special Schedule No. 9 in accordance with the Local Government Code of Accounting Practice and Financial Reporting (Guidelines) Update No. 23. This responsibility includes the maintenance of adequate accounting records and internal controls designed to prevent and detect fraud and error; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of Special Schedule No. 9 that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on Special Schedule No. 9 based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether Special Schedule No. 9 is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in Special Schedule No. 9. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of Special Schedule No. 9, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of Special Schedule No. 9. Because of the inherent limitations of anDRAFT audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Australian Auditing Standards.

In making our risk assessments, we consider internal controls relevant to the entity’s preparation of Special Schedule No. 9 in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

page172 10 Special Schedules 2015

Audit Opinion

In our opinion, Special Schedule No. 9 of Waverley Council for 2015/16 is properly drawn up in accordance with the requirements of the Office of Local Government and in accordance with the books and records of the Council.

Basis of Accounting

Without modifying our opinion, we advise that this schedule has been prepared for distribution to the Office of Local Government for the purposes of confirming that Council’s reconciliation of Council’s total permissible general income is presented fairly. As a result, the schedule may not be suitable for another purpose.

FIRM NAME

Partner Name here… Partner

Dated at Sydney this XXth day of Xxxxxxxxx, 2015 DRAFT

page173 11 Council Meeting 20 October 2015

Report CM/7.4/15.10

Subject: Small Grants Program 2015/16 (Round 1) Trim File No.: A15/0316 Author: Leisa Simmons, Julie Jenkinson, Caring Waverley Director: Linda Bathur, Acting Director Waverley Life

Recommendation:

That Council approves the Small Grants Program (Round 1) 2015/16 grants to the organisations and individuals as set out in this report.

1. Executive Summary

This report summaries the applications and requests for assistance Council has received under its Small Grants Program in Round 1 for 2015/16, which closed 4 September 2015. The Small Grants Program consists of two components: Cultural and Community, and Environmental. A total of 21 submissions were received, 18 for cultural and community projects, and 3 for environmental projects. A total of 13 proposals is recommended for funding in this round, consisting of a mix of iconic events and new ideas, and providing benefit across the Waverley community.

Table 1: Small Grants Program Round 1 2015/16 Summary of budget and recommendations:

Grant Category Budget - full Budget - No. of grants $ Value of total year per round recommended cash grants recommended* Cultural and $80,000 $40,000 11 $27,212 Community Environment $20,000 $10,000 2 $3,500

2. Introduction/Background

2.1 Relevant Council Resolutions

Following consideration of a review report in August 2014, Council endorsed the following recommendations for the Program, which have been implemented.

Council or Resolution No. Resolution Committee Meeting & Date 1. Operations 5 OCRD.20/14 That: August 2014 1. The Committee notes the changes being implemented in the Small Grants Program with regard to timing, promotions and website documentation. 2. The Committee implements Option 2 below, so that Environmental Grants are available to schools and small business organisations who meet eligibility criteria, and

Page174 1 Council Meeting 20 October 2015

Council or Resolution No. Resolution Committee Meeting & Date with community groups retaining the opportunity to apply for small grants for social, cultural and recreation projects. 3. The relevant Director provide all Councillors with briefing details on the existing criteria for assessing all applications. 4. 'Small businesses' are defined as 'micro-businesses', consisting of 5 or fewer employees.

The objectives of the small grants programs are: § Cultural and Community to encourage community groups, businesses and individuals to apply for projects that have social, recreational or cultural outcomes § Environmental to encourage schools, small business organisations, and childcare centres to apply who are keen to reduce greenhouse emissions, waste and water use in their operations.

Information about the Small Grants Program is available on Council’s web site throughout the year. Submissions are accepted at any time and are assessed twice a year. Applicants must describe how their proposal will deliver outcomes that have a social, cultural, recreational or environmental benefit for the Waverley community, and support Council’s strategic vision for Waverley as a safe, culturally rich, inclusive and cohesive community.

The program allows applications for both new initiatives, and service enhancements in existing programs. Generally applicants are encouraged not to depend on small grants for ongoing funding, but Council may offer applicants funding in successive years. Most applicants in this round have applied for a grant of up to $3,000 as recommended in the Guidelines. Council may approve higher amounts.

3. Discussion

Applications for the Small Grants Program (Round 1) for 2015-2016 are summarised in Table 2 following. A description of each application is provided in Attachment 1, together with background information, assessment, and recommendations provided by Council Officers with relevant expertise. The processing of applications was coordinated by a small panel convened by Caring Waverley and including the Manager Cultural Programs, and Sustainable Communities Environment Officer.

As Table 2 shows, a total of 21 applications was received from organisations and individuals seeking funds totalling $58, 672. Almost half the applications were from first time applicants, and this round also includes a number of regular applications that support iconic Waverley events: § Sculpture by the Sea’s Tactile Tours, § WAYS Safe Summer Survival, and § Flickerfest’s 25th International Short Film Festival.

Proposals recommended for funding provide a good mix of targets for community benefit, with four proposals targeting the general public, four children and families, two youth, and two older people. One aims to achieve inclusion of people with disabilities, and one to celebrate cultural diversity. More than half of the proposals received from new applicants are recommended for a grant of all or part of the funds sought.

Page175 2 Council Meeting 20 October 2015

Table 2: Small Grants Program Round 1 2015/16 Overview of Applications and Recommendations

Applicant Project Type New/ Target $ $ Prior Sought Recomm LOCO Project LOCO Project Arts New GPublic 3,000 3,000

Sculpture by the Sea Tactile Tours Arts People w 5,000 5,000 Inc Disability Flickerfest Flickerfest Short Film Arts GPublic 3,500 3,500 Festival Jewish Arts Inc Third Australian Arts GPublic 3,000 3,000 Jewish Choral Festival Rock Surfers Theatre CALD/GLBT Audience Arts Multicult 3,000 - Company Participation Project GLBT Waverley Woollahra Selected Student Art Arts Youth 3,000 - Arts Co-operative Exhibition Program Bondi & Eastern Wilde in the Open Arts New GPublic 3,000 - Suburbs Theatre and Shakespeare by Company the Seashore AHEPA Alexandrina Festival Arts New Multicult 3,000 3,000 (Greek Day Out) Sub-Total $17,500 BMD Andrea's Make-a- Comm New Children 3,000 500 Wish WAYS Safe Summer Survival Comm Youth 3,000 3,000

NSW Friendship Circle Drumming Circle Comm People w 2,560 - Disability Aged Care Psychiatry Positive Ageing Comm Older P 1,000 1,000 Service Forum Wheels for Youth BMX Program Comm New Children 3,000 -

Caretakers Cottage - Yoga & Mindfulness Comm Youth 1,200 1,200 Options Youth Housing Training Capable Kids Life Skills After School Care Comm New Children 3,000 - Program Life Education NSW Take Home Comm Children 2,400 - Workbook Waverley Community Equipment Comm Children 2,362 2,362 Out of School Care Uniting Care Ageing Carry On Gardening: Comm New OlderP 1,650 1,650 Accessible gardening in aged care Sub-Total $9,712 Total $27,212 Clovelly Public School Park & Ride for Enviro New Family 3,000 3,000 Parents & Citizens Clovelly Public Association Primary School Organic Republic Filtered Drinking Enviro New GPublic 3,000 500 Bakery Water Clovelly Primary Waste-Free Warriors Enviro Family 3,000 - School Total $3,500

Page176 3 Council Meeting 20 October 2015

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: C4 Community support services continues to be targeted to and accessible by those who need them most, including children and young people, older people and people with a disability. Strategy: C4b Build capacity of and provide support to community organizations to improve their ability to plan, deliver and evaluate services to the community. Deliverable: C4b Financial and other support to the community to improve capacity and to support partnerships and enhance Council's vision in relation to priority groups.

In addition, the environmental grants component addresses the following: Direction: E8 Waverley is an environmentally educated and committed community Strategy: E8a Encourage and support community involvement in our environmental program Deliverable: E8b An environmental grants program for funding to implement environmental projects and programs

5. Financial impact statement/Timeframe/Consultation

Sufficient funds are available in recurrent budgets to cover the grant allocations recommended in this report. The disbursement of funds can take place immediately after approval provided any conditions are met.

6. Conclusion

This Report recommends that Council distributes a total of $30,712 in small grants in this round to 13 organisations and individuals representing diverse interests in the Waverley community.

7. Attachment/s:

Attachment 1: Description of Small Grants Applications Round 1, 2015/16

Page177 4 Attachment 1: Description Small Grants Applications Round 1, 2015-16

Cultural Applications

Application 1 Pop Up Gallery Organisation Loco Project Pty Ltd The Activity Funding is sought to support a ‘pop up’ gallery proposed for one month between January and June 2016, exhibiting the work of local artists. The gallery will be open to visitors daily, and illuminated at night to fill the space with art, colour, and light. Exhibitions will change weekly. Works will be offered for sale from the gallery and ‘on-line’. Assistance Sought $3,000 and location fees waived Background Loco Project held an exhibition in Bondi Park in April 2014. Although their exhibition was severally interrupted by the Sydney storms that took place at that time, they exhibited the work of 33 artists, and report 1,500 visits to the gallery, 1,500 Facebook ‘likes’, 2,700 unique web site visits and 500 new followers on Instagram. Comment An excellent project with strong local connections and an entrepreneurial zeal. Funding History New application Website www.locoproject.com Recommendation $3,000 Recommended. Council’s Cultural Programs Manager will facilitate negotiations to help to find a suitable location for the ‘pop up’ gallery.

Application 2 Tactile Tours Organisation Sculpture by the Sea The Activity This project aims to provide access to the annual Sculpture by the Sea exhibition for children and adults with a range of disabilities, hands on through touch and informed dialogue with experienced guides and educators and with artists themselves. Assistance Sought $5,000 Background The program commenced in 2009 and is supported by the Art gallery of NSW Comment Sculpture by the Sea introduced Tactile Tours in 2009, and since that time has actively promoted the exhibition to new audiences among people with disabilities, and established on going relationships with key organisations (such as special needs schools) and community groups. Participation in tactile tours started with 9 people in 2009. Participation in 2014 included: 146 school students, and 40 adults with a wide range of disabilities booked through community organisations. Funding History $5,000 granted 2014-2015 (Acquittal Received)

Website www.sculpturebythesea.com Recommendation $5,000 Recommended.

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Application 3 Flickerfest International Short Film Festival Organisation Flickerfest The Activity Funding is sought to support the 25th Flickerfest International Short Film Festival, 7-18 January 2016. Assistance Sought $3,500 Background The 2016 Program will include 14 competitive programs with about 2,300 entries expected, Flickerup, a national schools competition; Greenflicks; and FlickerKids sessions. The one day Flickerlab will provide workshops and seminars with writers, directors, producers, distributers and marketing specialists. More than 7,000 people attended in 2015. Comment Flickerfest is a significant cultural offering, intimately connected with the Bondi Pavilion location. Funding History $3,000 granted 2014-2015 (Acquittal Received) Website http://flickerfest.com.au/ Recommendation $3,500 Recommended

Application 4 Third Australian Jewish Choral Festival Organisation Jewish Arts Incorporated The Activity Presentation of the third Australian Jewish Choral Festival over two days in March 2016, in Randwick. Aim to attract 80-100 singing participants from Jewish and non-Jewish backgrounds, to join active singing ‘instant choirs’ and to sing together as one large group over two days culminating in a public concert, which will include the world premiere of a new work by Elena Katz Chernin. Hope to attract sufficient teenagers to deliver a teen choir program, which will also feature in the final concert. Assistance Sought $3,000 Background The festival has previously been held in 2012 & 2014. The stated aims of the festival are to foster an involved community and a creative environment through arts and cultural activities to enrich community life; to recognize and celebrate cultural diversity and Waverley’s cultural composition, where over 17% of the population in Jewish; and to promote harmony and respect, foster community pride and social inclusiveness. Comment The event appears to be in an establishment phase Funding History Funded in 2014/15 for local communities program. (Acquittal Received) Website http://www.jewish-arts.org.au/ajcf3 Recommendation $3,000 Recommended. Cultural Programs would like to consider offering the festival some space within the music program for rehearsal to strengthen the connection with Waverley.

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Application 5 CALD/GLBT Audience Participation Project Organisation Rock Surfers Theatre Company Limited The Activity Funding is sought to support audience development work in conjunction with Mardi Gras 2016. Assistance Sought $3,000 Background Rock Surfers is the resident Theatre Company for Council’s Bondi Pavilion Theatre. The Company’s stated goal is to give emerging theatre artists a leg up into the Sydney theatre scene, create community hubs for independent artists and show case the best new Australian work. Comment Although a strong application, this submission is not recommended for funding on this occasion. The panel strongly supports the concept of supporting the marketing of an existing theatre production, rather than developing a new work within the limited funds available within this program. Funding History Rock Surfers received grants of $3,000 for Future Senior Former Youth in October 2014, and for Autobiographical Storytelling Workshops in June 2015. To date neither grant has been acquitted. Website http://rocksurfers.org Recommendation Not Recommended.

Application 6 WWAS Selected Student Art Exhibition Program Organisation Waverley Woollahra Arts School Co-op Ltd The Activity To mount exhibitions to showcase to the Waverley community selected student works in printmaking, drawing, painting, mixed media, ceramics and sculpture, and to provide work experience and/or traineeship opportunities for arts administration students in the skills needed to curate and manage art exhibitions. Assistance Sought $3,000 Background The Waverley Woollahra Arts School is run as an artists’ cooperative. It was established in 1968 to provide art and craft classes to the community and in so doing, provide employment to artists. The Coop rents the school from Council at a subsidized community rate. Comment Solid application that would considerably contribute to growth for the program of the school. Funding History The School received a grant of $3,000 in 2014 to develop a strategic plan. WWAS reports that the project is well on the way to completion, and with most of the funds expended on consultative processes. The school expects to deliver a strategic plan for 2015-20 in the coming months. Website http://wwas.org.au Recommendation Not Recommended. It is recommended that WWAS resubmit their funding application once their strategic plan is finalised. The application demonstrates potential growth for the school and is worth considering for support in a later round.

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Application 7 Wilde in the Open & Shakespeare by the Seashore Organisation Bondi and Eastern Suburbs Theatre Company The Activity Seeking support to mount performances of The Importance of Being Earnest in October 2015, and The Twelfth Night in February 2016 in Bondi Pavilion amphitheatre, as part of a broader program of performances of these works in out-door venues across the Eastern suburbs. Assistance Sought $2,000 + venue hire costs Background The Bondi and Eastern Suburbs Theatre Company appears to be a recent ‘start up’ having delivered its first performances of Romeo and Juliet in February 2015. It is a ‘not for profit’, established by actor producer Melissa Thompson. It aims to bring classical plays to a local audience utilizing some of the beautiful locations across the Eastern suburbs. Comment Does not demonstrate an audience connection and does not provide sufficient material to base a decision on artistic excellence in the funding submission. Funding History Nil Website http://www.bondiandeasternsuburbstheatreco.com Recommendation Not Recommended.

Application 8 Alexandrina Festival (Greek Day Out) Organisation Australian Hellenic Progressive Association (AHEPA) The Activity Produce a one day festival to be held 13 March 2016 at the Bondi Pavilion, celebrating art, culture and diversity and featuring exhibitions, music and traditional dancing. Assistance Sought $3,000 Background A concept proposal was endorsed at the September meeting of Council’s Multicultural Advisory Committee, and the Committee suggested that AHEPA make a small grant application. Comment The proposed event concept seems somewhat ambitious for a one day festival. Funding History Nil Website http://www.ahepa.org.au Recommendation $3,000 Recommended provided that a detailed event plan is developed in consultation with Council officers.

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Community Applications

Application 9 Andrea Alzened made a wish Organisation BMD The Activity New Zealand based, mural group, BMD, which demonstrates considerable international experience, has offered to provide Andrea with mentoring to enable her to undertake a large mural work. They are seeking support for materials to paint the wall above the Wally Weeks Wading Pool at North Bondi. Assistance Sought $3,000 Background The Make a Wish Foundation is working to help achieve the wish of 10 year old Andrea Alzened, diagnosed with leukemia, to become an artist. To date Google has provided support, and the Museum of Contemporary Art hosted an exhibition of her work in October 2014. Comment The application doesn’t demonstrate any connection to Waverley, or provide any detail about the plan for a mural. It does however, appear to represent a worthy cause. Funding History Nil Website http://bmdisyourfriend.com/ Recommendation $500 Recommended as a contribution to the cost of materials, provided an application is made to paint the mural on the Bondi Sea Wall according to the Guidelines for the wall.

Application 10 Safe Summer Survival Organisation WAYS Youth Services The Activity Funding is sought to support Safe Summer Survival (SSS), a youth based peer education program providing health promotions and education about risks associated with alcohol, other drugs and safe sex practices to young people within Eastern Sydney. The Project will conduct 4 outreach sessions involving teams of 4 peer educators working for 4 hours. It is expected that contact will be made with at least 700 young people over summer. Assistance Sought $3,000 Background Safe Summer Survival (SSS) employs young people in summer as peer educators and trains them in sexual health, alcohol and other drugs. The team consists of a coordinator, peer educators and volunteer peer educators all under the age of 25yrs. Once trained, they are able to discuss the health program with other young people and make referral to services as required. There is still concern with Chlamydia rates rising particularly in the Eastern Suburbs. The Program is partnered with sexual health specialists, including the Sydney Sexual Health Centre and Kirketon Rd Clinic. Comment This program has been running successfully for a number of years, and there is strong evidence that peer education is a good method for delivering information to young people. In addition, SSS has given many of its peer educators their first break into paid employment.

5 182 Funding History WAYS have received Council funding in the form of recurrent Grants, one off grants multiple types of support since its inception in 1979. Council has provided a small grant for SSS for many years. The 2014/15 grant has been acquitted. Website ways.org.au/index.php/outreach/safe-summer-survival-sss/ Recommendation $3,000 Recommended. This application was endorsed, but held over from Round Two 2014/15.

Application 11 Friendship Drumming Circle for People with Disabilities Organisation NSW Friendship Circle The Activity To run four six week professional drumming sessions during 2016. The project aims to connect young, people who are socially isolated or have a disability with others in the community through participating in making and enjoying music. Assistance Sought $2,560 plus a venue Background The NSW Friendship Circle is a registered charity, established in Australia 8 years ago. It brings together young people with special needs and teenage volunteers in various social situations, both one on one and in group settings. Comment The application provides very little detail about the planned program, evidence of need, or identified participants. Funding History Previously funded in 2014-15 (Acquittal Received) Website http://www.sydneyfc.org Recommendation Not Recommended

Application 12 Positive Ageing Forum: Humor, Happiness & Healthy Ageing Organisation Aged Care Psychiatry Services The Activity A free, public health forum to promote healthy ageing. The focus of this year’s forum is on health and happiness and will include presentations from Prof Henry Brodaty on the joys of ageing; Sophie Scott, author of Road Testing How to be Happier and John Paul Bell on Play Up – an aged care humour therapy program. The forum will be held on 18 November at The Juniors, Anzac Parade, and Kingsford. Assistance Sought $1,000. Background This public health forum is organized by Aged Care Psychiatry Services on behalf of their Consumer Consultative Committee to promote healthy ageing. The forum is a well-known annual event and is always booked out. Comment This is the only forum held in the east that has a focus on current research in healthy ageing and independent living. An opportunity to find out about the latest research and about available activities and services to support independent living for older people is needed and something that older people ask for. Funding History Waverley Council regularly contributes to the running of this event. Website N/A Recommendation $1,000 Recommended.

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Application 13 Wheels for Youth Organisation Wheels for Youth BMX Program The Activity To purchase a range of BMX bikes to enable the delivery of a program targeting children 5-12 years of age. This will enable the younger kids to participate in the programs already being run for older children. Assistance Sought $3,000 Background Wheels for Youth delivers BMX and skateboard programs to primary school aged children in after school and vacation care programs in Waverley including Bondi After School Care and Bronte Activity Centre. Comment Though this objective appears to have considerable merit, the nature of the relationship between the applicant and the OOSHs, and so of the ownership of the equipment proposed to be purchased, is unclear from the application. Funding History No previous Website Nil Recommendation Not Recommended for this round. Caring Waverley will follow up with the applicant to try to work out a viable model for supporting the activity.

Application 14 Yoga & Mindfulness Training Organisation Caretakers Cottage – Options Youth Housing Program The Activity Funds are sought to run a 10 week Yoga and Mindfulness course for young people aged 16-25 who are experiencing mental distress/ illness and are living in supported or transitional accommodation in the Eastern area of Sydney. It is proposed to run the sessions at the Margaret Whitlam Recreation Centre. Assistance Sought $1,200 plus venue fees of $370 waived Background Options Youth Housing provides medium term housing for young people who are at risk or homeless. Early this year, The Yoga Foundation ran a one off yoga and mindfulness class for Options, which was well attended and well received. The young attendees provided feedback that access to affordable yoga classes on an ongoing basis would be beneficial for their mental health and for learning more about coping strategies to maintain positive mental health. Comment This program was trialled earlier this year and achieved highly beneficial outcomes for participants. Funding History New program Website www.caretakers.org.au (parent organisation) Recommendation $1,200 Recommended (plus venue fees of $370 waived)

Application 15 Capable Kids Life Skills After School Care Program Organisation Capable Kids Life Skills The Activity Funds are sought to run a program once a week throughout 2016 during school terms for 20 children (ages 4-7) to provide relief for parents unable to get an ‘after school care’ place at Clovelly Out of School Care. The Program will provide education and practice opportunities in a new skill each week, and will run from St Lukes Church Hall, Clovelly. A fee of $30 per child per session will be charged.

7 184 Assistance Sought $3,000 Background Start up, not for profit Comment Although the objective obviously has merit it is not clear how the proposed program would provide parents unable to access ‘after school care’ with effective support. Funding History Nil Website None Recommendation Not Recommended

Application 16 Healthy Harold Take Home Workbooks Organisation Life Education NSW Ltd The Activity Funds are sought to purchase a $2 Life Education Take Home Workbook for each of the 1,200 children in 4 primary schools in Waverley who will receive education through the Program in 2016. Assistance Sought $2,400 Background Life Education is a health promotion program which provides children with access to health programs and information. Life Education provides Healthy Harold’s healthy living, drug and alcohol program to 4 schools in Waverley, Kambala School for Girls, Kincoppal Rose Bay School, Moriah War memorial College, and St Catherine’s School. The Program is funded by grants from NSW Health, class fees, and donations. Comment The small cost of the work book relative to the overall cost of the program suggests that this cost could be built in to the overall budget, rather than separately funded by Council. Funding History $1,500 - 2013 Website www.lifeeducation.org.au/state-offices/new-south-wales Recommendation Not Recommended

Application 17 Waverley Community Out of School Care Organisation Waverley Community Out of School Care The Activity Purchase of equipment Assistance Sought $2,362 Background This application seeks support for the purchase of chairs, mats and other equipment to support a program catering for 56-125 children in ‘before’ and ‘after’ school care. Comment An essential service that engages and educates children in Out of School Care. Funding History Waverley OOSH has previously been granted funds under the Community Grants Program, but has no current application. Website N/A Recommendation $2,362 Recommended

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Application 18 Carry on Gardening: Accessible Gardening in Aged Care Organisation Uniting Care Ageing The Activity Funding is sought to purchase two raised garden planter boxes for the Edina Aged Care Home, made from recycled UV stabilized PVC and purpose designed to facilitate access for people with restricted mobility. The garden beds will support a program of horticultural therapy at the home, which will involve residents and their families together with local volunteers. The program will include education about biodiversity, organic gardening and recycling, and plans for planting include herbs and flowers for sensory stimulation and producing herbal teas and remedies; and native plants to provide habitat for insects and birds. Assistance Sought $1,6590 Background The Edina Aged Care Home is located on Bronte Road, Waverley. The project will be managed by a qualified horticulturalist. It aims to: make a small contribution to reducing carbon emissions and the ‘city heat sink’ effect; to provide residents with the benefits of directed physical activity, links to the natural world and the satisfaction of gardening; and to create opportunities for connection between the home and the broader community. Comment This project will provide a focus for the Home’s environmental activities; improve quality of life for those residents who can benefit from connecting with nature; and create a practical focus for connections with the broader community. Funding History No previous Website www.unitingcareageing.org.au Recommendation $1,650 Recommended

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Environmental Applications Category

Application 19 Clovelly Public School P&C: Park and Ride for Clovelly Public School Children Organisation Clovelly Public School P&C The Activity Install new bike and scooter racks Assistance Sought $5180 Background Bike and scooter racks were installed with council help at Clovelly Public School three years ago (Contact Sustainable Transport Carolyn New for more details) but is agreed that they have now outgrown these racks, and that some additional, more prominent racks would encourage more people to ride or scoot to school. Note: The old racks are not in ‘disrepair’ as stated in the proposal. Council feels these racks should continue being used. Comment The proposal is good but it is recommended that Clovelly Public School P&C work with the Waverley Council Sustainable Transport Officer Carolyn New to develop a behavioral change program to promote cycling and scooting to school to ensure long term, positive change is made. It is also recommended that the old racks remain in use, and that fewer racks be installed than requested in the proposal. Funding History Clovelly Public School has received two grants previously (Whale festival and Grass and Greenery Project). Both have been acquitted. Website http://www.clovelly-p.schools.nsw.edu.au/ Recommendation $3000 Recommended towards the purchase and installation of scooter and bike racks on the condition that Clovelly Public School P&C meet with Waverley Council’s Sustainable Transport Officer Carolyn New to organise a behavioural change program to encourage cycling/scooting/walking to school. A report back on the behavioural change project - including the number of kids cycling each day at the beginning and end of the project – should be included in the final acquittal report to council.

Application 20 Water fountain in Bakery Organistaion Organic Republic Bakery The Activity Install a water fountain in-store and stop selling bottled water Assistance Sought $3000 to buy and install a water fountain Background The owner of the shop is well-known for engaging in environmental practices, and is involved in the community/council partnership campaign for a plastic free Bondi. Comment The same objectives could be achieved using a cheaper model of water fountain. We suggest investing in a cheaper model. We understand if the applicant would like a more expensive model to suit the aesthetic of the shop, so the applicant could choose to use only the grant funds or to put the money towards a more expensive unit.

Funding History None Website http://www.republicbondi.com.au/ Recommendation $500 Recommended towards the water filter/dispenser.

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Application 21 Waste Warriors Organisation Clovelly Public School The Activity Waste Warriors Assistance Sought $3000 Background Dave Kistle has worked with Sustainable Waverley’s Vicky Bachelard on the sustainable schools network and Green Sparks programs. Comment Needs to think through the project some more. Some suggestions are to : - Include more detail about the projects aims, implementation and budget - Narrow the focus of the project. Eg. either composting, recycling or nude food instead of all three - Ensure parents are communicated to about the project - Think through the educational component - Thinking through the incentives. What are the barriers to change and what incentives would actually change this? Are lunch boxes a good incentive? - Think about the audiences i.e. teachers vs parents vs students

Funding History Received two grants previously (Whale festival and Grass and Greenery Project) Website http://www.clovelly-p.schools.nsw.edu.au/ Recommendation Not Recommended. No funding this round, but encourage them to reapply in future rounds taking our feedback into account. Note: The Clovelly Public Bike and A=Scooter Rack grant must be acquitted before they can reapply.

11 188 Council Meeting 20 October 2015

Report CM/7.5/15.10

Subject: Tamarama Rock Surfers funding extension Trim File No.: A13/0280 Author: Matthew Fallon, Manager, Cultural Programs Director: Linda Bathur, Acting Director, Waverley Life

Recommendation:

That Council approves a Council subsidy of $75,000 p.a. for Tamarama Rock Surfers to align with the extension of their licence in the Bondi Pavilion and backdated from 15 September 2015 and ending 31 March 2017 or just prior to construction commencing at the Bondi Pavilion

1. Executive Summary

Council has previously agreed to lease extensions for existing tenants at the Bondi Pavilion until 31 March 2017, or until just prior to the commencement of onsite building work. This included an extension of the licence for the Tamarama Rock Surfers (TRS).

The original license agreement between Waverley Council and TRS included a subsidy of $75,000 p.a and Council has agreed to further extensions of this funding each time the license has been renewed.

In the Council report requesting the extension of leases for Bondi Pavilion tenants a specific request for continuation of the annual subsidy to TRS was inadvertently omitted from the recommendations.

Council is asked to approve the continued funding arrangements with TRS in line with their extended occupancy of the Bondi Pavilion Theatre.

Funding in support of the resident theatre company has been included in the long term financial plan.

2. Introduction/Background

Council has a proud history of supporting the arts as a way to foster a cohesive and lively community.

As Council’s key arts facility, the Bondi Pavilion supports various sectors of the community through successful arts programs such the Bondi Wave, which provides music skills to young people.

A decision was made in 2008 to appoint a resident theatre company in the Bondi Pavilion to deliver annual theatre programs and allow Council to undertake programs that would not otherwise be possible if it was to directly deliver a theatre offering on its own.

The Tamarama Rock Surfers were first endorsed by Council as the resident theatre company for three years commencing in 2010 and the license agreement between Council and TRS commenced on 15 September 2010. In 2013 TRS exercised their option for a further two year term.

To date TRS has addressed all required elements detailed in the license with respect to its role as licensee. Quarterly reports are submitted on a regular basis detailing actions and financial statements. (attachment 2 & 3) Page189 1 Council Meeting 20 October 2015

In February 2015 (CM/10.2/15.02), due to the comparatively short period of time between the end of the TRS license and the commencement of construction works associated with the Bondi Pavilion upgrade project, Council agreed to continue the license agreement until 31 March 2017, or until just prior to construction.

As part of the original license agreement Council allocated an annual subsidy of $75,000 to TRS to assist in running costs. The continuing subsidy was also endorsed when TRS exercised its further two year option in 2013.

This subsidy is a key component of TRS funding and essential to its ongoing viability.

The allocation of a subsidy to TRS is in line with the vast majority of theatre companies in NSW who are not for profit companies and heavily subsidised by government.

For example, small to medium theatre companies (such as Darlinghurst Theatre, Griffin Stablemates, B Sharp) receive over 50% of their income from government grants and it is regular practice for local governments to supply rent-free venues and subsidies to theatre companies for the benefit of the local community.

In the Council report requesting the extension of leases for Bondi Pavilion tenants and the licence for TRS, a request for continuation of the annual subsidy to TRS was not specifically included in the recommendations.

Council is asked to approve the continued annual subsidy of $75,000 p.a for TRS to enable them to continue to deliver programs in line with their extended occupancy of the Bondi Pavilion Theatre.

The subsidy from September 2016 to March 2017 or the closing of the theatre for building works would be calculated on a pro rata basis.

2.1 Relevant Council Resolutions

Council or Committee Minute No. Decision Meeting & Date 17 February 2015 CM/10.2/15.02 9. – (IV) Rock Surfers (for which licence expires Council Meeting 15/9/2015), licence to be extended on a holdover basis to 31 March 2017, or until just prior to construction; 16 July 2013 1307.12.12 1. Note that Tamarama Rock Surfers Theatre Council Meeting A10/0194 Company Ltd has exercised their option for a further two year term as resident theatre company, to end September 2015.

2. Note the proposal from Tamaroa Rock Surfers Theatre Company Limited for a continuation and increase of subsidy.

3. Approve in principle a continued Council subsidy of $75,000 p.a. (adjusted for CPI) for Tamarama Rock Surfers Theatre Company Limited for the two years commencing September 2013 and ending September 2015.

Page190 2 Council Meeting 20 October 2015

Council or Committee Minute No. Decision Meeting & Date 15 September 2010 D11/23823 Lease agreement signed with Tamarama Rock Surfers Theatre Company Limited

3. Discussion

Council’s funding contribution to TRS is an essential component to its operational budget.

It also provides a base from which TRS management has been able to leverage additional funding from other levels of government.

This includes funding from Arts NSW ($150,000 annually) and the Australia Council for the Arts (up to $60,000 annually)

The theatre funding landscape has recently shifted significantly with changes within the Federal Government arts portfolio and the Australia Council for the Arts required to reduce its grants programs.

TRS are taking steps to further broaden their funding base to reduce their vulnerability to future changes within the funding environment while continuing to apply to traditional funding bodies.

The successful continuation of a theatre offering at the Bondi Pavilion is a key component of the arts and cultural program within the Eastern Suburbs.

In May 2015, the highly experienced New Zealand theatre maker Shane Bosher commenced in the role of CEO/Artistic Director for the Rock Surfers. He has immediately commenced a review and redevelopment of the Rock Surfers forward program (attachment 4)

TRS is embarking on a challenging and thought-provoking program for 2016 which promises to provide an exploration of outsider narratives and community connection to contemporary issues in Australian society.

Council officers are also currently working closely with TRS to deliver a regular Bondi Arts and Culture foldout poster to co-promote our programs, allowing Council to leverage the continued success of TRS offerings to promote our own programs. Additional program collaborations are also regularly underway.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: C6 - Arts and cultural activities foster an involved community and a creative environment Strategy: A - Enrich the community’s cultural life and support lifelong learning Deliverable: A diverse and exciting range of arts and cultural events across Waverley

Direction: C6 - Arts and cultural activities foster an involved community and a creative environment Strategy: C – Foster opportunities in the creative sector Deliverable: Support, advice and affordable assessable venues provided to assist artists and others to hold arts and cultural events and activities

Page191 3 Council Meeting 20 October 2015

5. Financial impact statement/Timeframe/Consultation

Along with an annual funding allocation from Council of $75,000 TRS have received annual funding of $150,000 from Arts NSW and up to $60,000 annual funding from the Australia Council for the Arts.

As included in the TRS license with Waverley Council, we provide funding of $75,000 per annum on a quarterly basis at the rate of $18,750 + GST.

From its funding of $75,000 the residents of Waverley receive $285,000 value as a combined funding pool from all three levels of government.

Forward costs in supporting the resident theatre company have been factored into the long term financial plan.

6. Conclusion

TRS have provided valuable activation of the theatre facility in the Bondi Pavilion for the past 5 years and have fulfilled deliverables associated with their role as the licensee.

Council is asked to continue to provide an annual subsidy to the Tamarama Rock Surfers until 31 Match 2017 or commencement of works relating to the Bondi Pavilion upgrade project.

7. Attachment/s:

1) Letter from Shane Bosher, Artistic Director / CEO Tamarama Rock Surfers 2) Quarterly report April – June 2015, Tamarama Rock Surfers 3) Quarterly report January – March 2015, Tamarama Rock Surfers 4) Rock Surfers 2016 Program

Page192 4

Cathy Henderson Waverley Council PO Box 9 Bondi Junction 1355

08 September 2015

Dear Cathy,

I’m writing to request an extension of the Resident Theatre Company funding for Rock Surfers Theatre Company through to March 31 2017, when the redevelopment of the Bondi Pavilion will commence.

Since Rock Surfers took up the residency at the Bondi Pavilion in 2011, the company has activated the venue as a robust centre for artistic excellence, community engagement and independent sector generation. Recent interventions in programming have seen the company continue its much-celebrated children’s productions and deliver two impactful community-participation projects [Shabbat Dinner and Future Senior/Former Youth], facilitating more meaningful dialogue with the Jewish and aged communities of Waverley. Curated development festivals such as Bondi Feast and Summer Camp have seen Rock Surfers utilise every nook and cranny of the Pavilion, with over 150 artists working in the building. The ongoing investment of Waverley Council has made considerable impact, enabling a vibrant community of participants [both artists and audience] to emerge and develop alongside each other.

Rock Surfers Executive Team and Board are currently committed to a process of strategic revisioning, business planning and capability building. Commencing as the new Artistic Director and CEO in April 2015, I have already rearticulated the vision for the company going forward and begun to reposition the performance programme. With significant history of leadership and company redevelopment in my native NZ, a cross-organisational team of Board and Management are now poised to move from a founding framework to a normalising framework into a period of growth. The Board has also seen some recalibration with renowned local financial analyst Sally Wilson from Capital Matters recently appointed. Continued funding support for Rock Surfers over this period will enable the company to develop a high quality artistic programme for 2016 and deliver to its organisational goals.

As an organisation which is now focussed on developing the audiences of the future, Rock Surfers will in 2016 deliver an artistic and cultural interface that truly connects with the diverse communities of Waverley, championing a diversity of experience. The proposed 2016 programme provides opportunities for targeted audience development across community segments including women, Aboriginal, youth, GLBTI, Asian-Australian, migrant and Pacific Island audiences. A new project to augment our existing programmes for independent practitioner development, Bondi Indie, will see Rock Surfers trigger even greater occupancy of the theatre.

Rock Surfers will build community with the inhabitants of Waverley through content and conversation. We will continue to ignite excellent work that impacts audiences.

I hope Council will look on this request kindly and continue this necessary funding. We look forward to continuing our relationship together.

Kind regards

Shane Bosher Artistic Director Rock Surfers Theatre Company

193 ROCK SURFERS THEATRE COMPANY RESIDENT THEATRE COMPANY REPORT 19th QUARTER: APRIL to JUNE 2015

COMPANY REPORT

GOVERNMENT BODY RELATIONS

THE AUSTRALIA COUNCIL Rock Surfers continued the activation of its 2015 program through transitionary Program/Presenter Funding.

During this funded period, the Australia Council was forced to review and make significant changes to its grants program in response to the 2015-16 budget measures put in place by George Brandis. http://www.australiacouncil.gov.au/news/media-centre/media-releases/australia-council-update- 19-june-2015/

As a result of this, the Australia Council cancelled a number of funding rounds, most significantly the 6 Year Funding Program from which Rock Surfers was anticipating capturing investment from the beginning of 2016. The effects of these decisions have yet to be felt by the sector, but they are expected to cause considerable negative impacts for the small to medium sector, including Rock Surfers.

STATE BODY RELATIONS

THE DEPARTMENT OF TRADE AND INVESTMENT: ARTS NSW Rock Surfers continued the activation of its 2015 program through Arts NSW funding.

In a strategic meeting between new Artistic Director Shane Bosher, Ange Ceccho and Grace Archibald, Rock Surfers elected to continue its relationship with Arts NSW through Annual Program Funding rather than Multi-Year, to provide the company with an opportunity to recalibrate from a founding framework to a normalising framework and then into a period of growth.

LOCAL BODY RELATIONS

WAVERLEY COUNCIL As per this report.

Application made to Small Grants Round toward Autobiographical Theatre Workshops in the last quarter of 2015.

194 ARTISTIC REPORT

ACTIVITY SUMMARIES

ARTISTIC PROGRAM

PRODUCTION TARGET OCCUPANCY NET TICKET SALES BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE DR. BROWN BROWN April 7-11 [Family Event] 55% 47% -8% 5541.25 6380.00 +838.75 ANIMAL/PEOPLE April 29-May 16 35% 14% -21% 19650.00 6585.50 -13064.50 SYDNEY WRITERS’ FESTIVAL May 18-24 50% 67% +17% 0.00 0.00 0.00

VENUE HIREAGE

PRODUCTION OCCUPANCY NOTES SYDNEY COMEDY FESTIVAL April 22 Capacity attendance of 218 Showcase Event NEIGHBOURHOOD WATCH May 28-June 6 2190 over season Education & Public Season WORLD YOGA DAY June 21 Capacity over the day Community Event HOWARD FINE ACTING SCHOOL June 25-July 1 Student Groups of 50+ Acting Classes

OCCUPANCY THIS QUARTER

WK COMMENCING ACTIVITY DAYS IN USE VENUE USE 01.04.2015 Dark 0 0% 06.04.2015 DR. BROWN BROWN 7 100% 13.04.2015 ANIMAL/PEOPLE Rehearsals 7 100% 20.04.2015 SYDNEY COMEDY FESTIVAL 7 100% 27.04.2015 ANIMAL/PEOPLE 7 100% 04.05.2015 ANIMAL/PEOPLE 7 100% 11.05.2015 ANIMAL/PEOPLE 7 100% 18.05.2015 SYDNEY WRITERS’ FESTIVAL 7 100% 25.05.2015 NEIGHBOURHOOD WATCH 7 100% 01.06.2015 NEIGHBOURHOOD WATCH 7 100% 08.06.2015 Dark 0 0% 15.06.2015 WORLD YOGA DAY 1 14% 22.06.2015 HOWARD FINE ACTING SCHOOL 7 100% 29.06.2015 HOWARD FINE ACTING SCHOOL 2 100% 73 80%

195 Rock Surfers engaged with the following artists over this funded period:

→ Playwrights Lally Katz, Caleb Lewis, Patrick Lenton and Brooke Robinson → Theatremakers Sabrina D’Angelo and Claire Lovering → Directors James Dalton, Phil Spencer, Jennifer Medway and Susanna Dowling → Designers Benjamin Brockman, Isabella Andronos, Dylan Tonkin, Alexander Berlage, Tom Hogan and James Brown → Actors Georgia Adamson, Martin Crewes, Gertraud Ingeborg, Anne Wilson, Skyler Ellis, Andrew Lindquist, Linden Wilkinson, Odile le Clezio and Steven Kreamer → Award-winning writer Patrick Lenton, → Comedians Nikki Britton, Ray Bradran, Al Del Bene, Susie Youssef, William Erimya, Jared Jekyll, Michael Workman, Corey White, Jacques Barrett and Smart Casual → Writers Caroline Overington, Charles Waterstreet, Virginia Peters and Paul B. Kidd → Presenter Suzanne Leal → Singer-songwriter Richard Cuthbert → One-man jukebox Benny Davis → The MoOceaners Choirs

ROCK SURFERS PRODUCED CONTENT: DR. BROWN BROWN BROWN & HIS SINGING TIGER

→ School holiday entertainment for families created by Phil Burgers and Stuart Bowden. Aimed at ages 6-8. → Co-produced with Steph Brotchie from Don’t Be Lonely, the production came to us direct from success in Melbourne and Adelaide. → Rock Surfers is experiencing significant competition for the Vacation Care/OOSH audience it has cultivated from providers outside the Waverley area delivering content with “known” titles, such as The Gruffalo, Snugglepot & Cuddlepie and The Witches → Despite this the project played to respectable attendance and delivered a small surplus – and most certainly delivered to expectations in terms of quality artistic content. Its interactive and anarchic frame resulted in deeply engaged children.

ROCK SURFERS PRODUCED CONTENT: ANIMAL/PEOPLE

→ World premiere of new work from emerging writer Brooke Robinson. The premiere season followed significant historical investment by the company through its Summer Camp and New Work Development Programs → Actors were paid industry standard professional wages [rather than through the traditional profit share frame] → The work pushed form through its use of bold, poetic language and design elements. Given a robust staging by James Dalton. → Despite a cohesive PR campaign, attendance was low and delivered below budget expectation. This can be attributed to two factors: firstly, Sydney experienced extraordinary flash-flooding and storms during the performance period. The play’s end, which had been a significant point of discussion through its development, didn’t really deliver to expectation, meaning that word of mouth wasn’t as potent as it could have been.

PROGRAM DEVELOPMENT

→ New Artistic Director Shane Bosher began reframing the programming pathways. → In May, the company launched Bondi Indie: a new programming frame designed to support the emerging sector, develop independent practice and amplify usage and occupancy of the Bondi Pavilion Theatre. → SB commenced dialogue with a large number of industry professionals with a view to building the creative capacity of the company. With a focus on championing a diversity of 196 experience, SB is making concerted efforts to build relationships with CALD and Aboriginal artists. → Outgoing Artistic Director Phil Spencer cultivated submissions for the fourth annual Bondi Feast during this funded period. Programmed in conjunction with Festival Director Rachel Chant.

GENERAL VENUE ACTIVITY DURING FUNDED PERIOD

→ Melbourne-based acting institution Howard Fine Acting School returned for their second annual booking. This event attracted occupancy of 50+ per session, showing that the hirer has built their audience year-on-year. Timed to sit alongside the June school holidays, the hirer dealt with significant noise disturbance from the Winter Ice Rink. Unfortunately, they’ve elected to find other digs for 2016. → Following their successful education season of Ruby Moon at the beginning of 2014, Illuminate Educate returned to the building with their 2015 offering: Neighbourhood Watch. The company sheds light on HSC Drama texts in order to support the work of NSW Drama teachers and their students. The production was hugely popular with schools, playing to an audience of 2190 over its season. → We hosted the United Nations World Yoga Day in June, providing the frame for a series of events including classes, meditation and panel discussions. Open access and hugely successful, this event is likely to become an annual event at the Pavilion. → Sydney Comedy Festival returned with their annual showcase, playing to capacity attendance. Century Entertainment very pleased with the success of this event and will continue engagement in 2016. → We hosted and co-produced a series of events as part of the Sydney Writers Festival. Curated by Phil Spencer, these ranged from panel discussions with writers to storytelling, poetry and an evening of improvised wedding speeches. We also hosted a special event timed with the launch of 2015 Nib Waverley Library Award submissions. Allows Rock Surfers to build brand awareness with new audiences.

MARKETING & MEDIA RELATIONS

MARKETING CAMPAIGN: DR. BROWN BROWN BROWN BROWN & HIS SINGING TIGER

→ Collateral: 1000 fliers and 50 posters → Distribution: Managed by internal staff → Online and Radio Advertising: None → Publicity: Leveraged internally by Associate Director Rachel Chant → Waverley Council Communications: Bondi Arts and Culture Jan-Jun 2015 Program → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including STC, New Theatre, Griffin and Ensemble → Giveaways leveraged through blogsites/online spaces including Big Kids, Ella’s List and Kidsize Living → EDM to Vacation Care Centres represented a significant proportion of bookings

MARKETING CAMPAIGN: ANIMAL/PEOPLE

→ Collateral: 5000 fliers and 100 posters → Distribution: Mainwaring Distribution with a focus on Eastern Suburbs and Inner West → Radio Advertising: Paid campaign through FBI Radio → Print Advertising: Paid campaign through The Brag and The Music → Publicity: Leveraged by Kabuku PR [Campaign Report attached]

197 → Waverley Council Communications: Bondi Arts and Culture Jan-Jun 2015 Program → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including Belvoir, STC, New Theatre, Griffin, Ensemble and the Old Fitz

BAR & FUNCTIONS OPERATIONS

# DATE EVENT DETAIL TAKINGS 1 18.04.15 Scott Bailey Wedding $3556.50 2 15.05.15 Elaine McCarthy Birthday $1961.50 3 15.05.15 Wave Music/Neighbourhood Function and Opening Night $4924.00 4 29.05.15 Anita Buncic Film Screening and Function $3058.25

SUMMARY A slow quarter, with four functions serviced. A number of other events had been pencilled, but were cancelled due to the unpredictable, inclement weather experienced during this period.

Functions were negotiated by outgoing ED Michael Brown and managed by Vashti Pontaks, who returned to her duties as FOH and Bar Manager on a PTE basis. Troys were contracted to provide hospitality staff for the wedding function.

CAPACITIES → The Scott Bailey wedding had 110 guests → Elaine McCarthy birthday had approx. 50 guests → Wave Music Conference had 50 guests → Neighbourhood function had 130 guests → Film Screening had approx. 40 guests

COMPANY OPERATIONS

This period of funded activity saw the company managing significant change and transition internally.

After an extensive recruitment period, new Artistic Director/CEO Shane Bosher commenced his employment on April 1. His first months with the organisation consisted of information gathering, analysis of organisational capability and delivering a draft programming plan for 2016. He also reviewed Rock Surfers’ Strategic Plan, creating a first draft in line with a recalibrated vision for the organisation.

Acting Artistic Director Phil Spencer concluded his tenure on May 1, following the curation and programming of Bondi Feast 2015.

Executive Director Michael Brown was offered career advancement with a new position as Cultural Manager of Hornby Council during this period and regretfully tendered his resignation, with his last day on May 8.

On the recommendation of Charles Pashi from Business Solution from the Arts, Natalie Newton was engaged on contract as Bookkeeper. Natalie possesses a wealth of experience with arts companies and also currently subcontracts to PACT. She has already offered significant value to the company,

198 reviewing and recalibrating the chart of accounts and cultivating calendars for compliance with the ATO. She is working alongside Bosher to create meaningful and achievable cashflow projections through to year end.

Following travel overseas, Vashti Pontaks returned to Rock Surfers in a PTE capacity as FOH and Bar Manager. She is facilitating all events, casual staffing and FOH operations.

BUDGET

ACQUITTAL OF RESIDENT THEATRE COMPANY FUNDING ROCK SURFERS THEATRE COMPANY : BONDI PAVILION THEATRE APRIL 1 to JUNE 30 2015

INCOME WAVERLEY COUNCIL Resident Theatre Company Funding 18750.00

NET INCOME 18750.00

EXPENDITURE WAGES Creative Producer 5611.14 Technical Manager 4669.00 Bar Manager 4484.84 ADMINISTRATION Internet Access 222.49 Office Equipment 790.00 Online Accounting 126.00 Workers Compensation Insurance 369.12 MARKETING COSTS RS Publicity 2200.00 Online Marketing 281.08

NET EXPENDITURE 18753.675

NET PROFIT/LOSS -3.67

199 ROCK SURFERS THEATRE COMPANY RESIDENT THEATRE COMPANY REPORT 18th QUARTER: JAN to MAR 2015

COMPANY REPORT

GOVERNMENT BODY RELATIONS

THE AUSTRALIA COUNCIL Rock Surfers commenced the activation of its 2015 program through transitionary Program/ Presenter Funding.

During this funded period, Rock Surfers put forward a competitive EOI for 6 Year Major Funding along with peer organisations across the small-to-medium sector.

STATE BODY RELATIONS

THE DEPARTMENT OF TRADE AND INVESTMENT: ARTS NSW Rock Surfers commenced the activation of its 2015 program through Arts NSW funding.

Alongside the EOI tabled with the Australia Council, Rock Surfers also submitted an EOI for Multi- Year Funding

LOCAL BODY RELATIONS

WAVERLEY COUNCIL As detailed in minutes from meeting between Executive Director Michael Brown and Cathy Henderson and Matthew Fallon of Waverley Council [attached]

ARTISTIC REPORT

ACTIVITY SUMMARIES

ARTISTIC PROGRAM

PRODUCTION TARGET OCCUPANCY NET TICKET SALES BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE JELLYBEAN ISLAND [Family Event] 60% 73% +13% 4335.00 10425.00 +6090.00 SUMMER CAMP April 29-May 16 20% 27% +7% 1092.00 2385.00 +1293.00

200 DESTROYER OF WORLDS Feb 13-28 [Adelaide] 30% 15% -15% 3780.00 2140.00 -1640.00 SHOTGUN Fee for contract. Mar 11-22 [Spectrum] Played to near capacity of 288. 6000.00 6000.00 0.00 FUTURE SENIOR/ FORMER YOUTH Mar 19-21 10% 7% -3% 1450.00 855.00 -595.00 SHABBAT DINNER Mar 24-29 [Spectrum] 60% 79% +19% 2925.00 6880.00 +3955.00

VENUE HIREAGE

PRODUCTION OCCUPANCY NOTES THE MERGER Jan 21-22 Attendance of 223 Theatre Event SYDNEY SURF FILM FESTIVAL Jan 27-28 Not ticketed by RS Film Screenings

BONDI PAVILION OCCUPANCY THIS QUARTER

WK COMMENCING ACTIVITY DAYS IN USE VENUE USE 01.01.2015 Venue Exclusion N/A N/A 05.01.2015 Venue Exclusion N/A N/A 12.01.2015 SUMMER CAMP 7 100% 19.01.2015 SUMMER CAMP/THE MERGER 7 100% 26.01.2015 SUMMER CAMP/SSFF 7 100% 02.02.2015 SUMMER CAMP 7 100% 09.02.2015 Dark : RS Working Offsite 0 0% 16.02.2015 Dark 0 0% 23.02.2015 FUTURE SENIOR Rehearsals 7 100% 02.03.2015 FUTURE SENIOR Rehearsals 7 100% 09.03.2015 FUTURE SENIOR Rehearsals 7 100% 23.03.2015 FUTURE SENIOR Performances 7 100% 30.03.2015 Dark 0 0% 56 76%

This quarter celebrated outgoing Artistic Director Phil Spencer’s programming strengths and his investment in artist development and new interventions in the relationship between artist and audience. It was a period of significant artistic activity!

Rock Surfers engaged with the following artists over this funded period:

→ Playwrights Melissa Lee Speyer, Katie Pollock, Caleb Lewis, Tim Spencer, Jessica Bellamy, Vanessa Bates, Joanna Erskine, Anne Lau and Hilary Bell → Theatremakers Alice Cooper, Cameron James, Susie Youssef, Nitin Vengurlekar, Nick Coyle, Julia Patey, Thom Jordan, Tessa Leong, Sabrina D’Angelo, Bianca Kostic-London, Patrick Magee, Michael Pastor, Laurel Lloyd Williams, Fiona Pearson, Jack Yabsley, Emma McManus, Mark Rogers, Troy Reid, Clara Klemski and Jared Jekyll

201 → Directors Elsie Edgerton-Till, Erin Taylor, Phil Spencer, Carissa Licciardello, Rachel Chant, Anthony Skuse, Scarlet McGlyn and David Burrowes → Designers Catherine Steele, Michael Hili, Emma Lockhart Wilson and Gemma O’Nions → Actors Bodelle de Ronde, Daniel Monks, Jordan Cowan, Sopa Enari, Shannon Dooley, Jason Perini, Tanya Goldberg, Alfie Gledhill, Olivia Rose, Joel Horwood, Charles Wu, Liam Nunan, Emele Ugavule, Rebecca Mayo, Nicholas Papademetriou, Kirsty Marillier, Whitney Richards, Alex Malone, Lily Newbury-Freeman, Eleni Schumacher, Howard Lawrence Sumner, Nikki Britton, Rebecca Barbera, Hannah Reilly, Michael Hing, Rosie Lourde, Duncan Ragg, Sally Withnell, Clare Hennessy, Abbie-Lea Hough, Eve Beck, Tim Mannering, Madeleine Reid, Kate Sherman, Michael Pigott, Ryuichi Fujimura, Samantha Chester, Eloise Snape and Jill McKay → Composers Tom Hogan, DJ Mendel and The Bedroom Philosopher → Workshop Leaders Sarah Goodes, Paul Bourke and Michael Seiders

SUMMER CAMP

→ Designed to develop new work, build community and amplify the use of our residency at the Bondi Pavilion, over four weeks RS activated the theatre, gallery, Seagull and Dolphin Rooms with workshops, developments, showings and conversations. → Over 80 practitioners from the emerging independent sector participated. These artists were from a great variety of backgrounds and disciplines. We celebrated building relationships and networks with CALD, young women, recent NIDA and University of Wollongong graduates, experimental performance makers, dancers and emerging interstate companies. → 16 new works were developed. Of these, many went on to public presentations as part of the Old 505 Freshworks Program, the Edinburgh Fringe, Spectrum Now, the Sydney Fringe, Bondi Feast and the Melbourne Comedy Festival, the Old Fitz Latenight Program or further development with ATYP, Rock Surfers and Bondi Indie. At the end of each week-long residency, artistic teams were invited to present as part of the Sundown Sessions in the Gallery. These had a laid-back atmosphere and were open to the public. We also played host to the second phase of development for works previously developed with RS. → Summer Camp presented 6 ticketed events: 24 Hour Party Playwright, Waves, Sunburnt, Nick Coyle’s Guided Meditation, Tin Shed Camping Tours and Tropicana. With the exception of Waves and 24 Hour Party Playwright, attendance at paid events was low. → Workshops for Directing, Independent Producing and Bouffon were well populated, with most at capacity. These were led by leading practitioners including STC Associate Director Sarah Goodes. → Produced by AD Phil Spencer and ED Michael Brown, this was the first time during the RS Residency that the Pavilion had seen so much activity. → We believe that the Summer Camp development frame offers the emerging sector much- needed development support. As a space to play, the informal “no pressure” frame means that artists can risk in a supportive environment, sharping and honing their craft.

JELLYBEAN ISLAND

→ School holiday entertainment for families created by alternative comedians Jared Jekyll and Cameron James. Aimed at ages 6-8. → Allowed RS to engage in a significant partnership with Cockatoo Island, who purchased the show sight-unseen, providing a fee for contract and therefore a healthy budget surplus. Presented as a free event at Cockatoo Island, this did split our audience somewhat, with many of our usual audience electing to attend at CI rather than Bondi. → Delivered to expectations in terms of quality artistic content for children. Utilised the Seagull Room in an innovative way, breaking down the barriers between artist and audience in performance. The production had a similar aesthetic to our hit UH OH, TONY!

202 → This production is likely to have a future life in the touring network for quality family entertainment.

ADELAIDE FRINGE: DESTROYER OF WORLDS

→ World premiere of a new work by Caleb Lewis, developed through Summer Camp 2014. → Programmed to extend our existing offer with audiences into new markets, Destroyer celebrated an artistically successful run at the Adelaide Fringe. → It achieved highly-commendable reviews and perhaps as the best reviewed and attended RS show of late, it’s a little unfortunate that this happened in another state! → Presenting work at the Adelaide Fringe allowed the company to build the brand, extending the RS reach beyond Sydney and develop relationships with interstate artists with like sensibilities, many of whom are now engaged in dialogue with the company.

SPECTRUM NOW: SHOTGUN

→ RS delivered two new works offsite as part of the inaugural Spectrum Now Festival. → SHOTGUN celebrated a great concept for site specific performance. Commissioned writer Vanessa Bates riffed on the 2014 hostage crisis in Martin Place, creating a chilling twenty minute short-story. Housed in the backsite of a car in the Sydney Domain, audience members were taken on a “road-trip” by actors Jason Perini and Nicholas Papademetriou. The formal inventiveness was picked up by media, giving RS great visibility through festival publicity. → Festival Director Richard Roxburgh championed the work as his festival pick. → Directed by RS Associate Artist Erin Taylor → Paid a fee for contract, this was a lucrative addition to our RS core activity. → In its first year, Spectrum Now failed to deliver operationally, not surprising given that cultural activation is not a newspaper’s core activity. Despite promises, the festival failed to recruit staff with any experiential knowledge of festival or arts operations. This meant in turn that Michael Brown took on a significant workload to bring the project to completion. → The event site at the Domain suffered from poor visibility, meaning that RS had to activate social media to build audience awareness. Spectrum Now staff failed to engage in isolating this problem.

SPECTRUM NOW: SHABBAT DINNER

→ The second work staged as part of Spectrum Now, SHABBAT DINNER was a piece of participatory theatre created by Jessica Bellamy and Anthony Skuse. First developed through the Summer Camp and Bondi Feast frames. → An excellent show with meaningful content, which captured the attentions of a large Jewish audience. Well received, this production played to near capacity attendance and achieved a healthy surplus. → As with SHOTGUN, this production achieved significant media leverage and was celebrated as a hero show for Spectrum Now. → Allowed RS to invest in creating work in non-traditional spaces, breaking down the barriers between art and audience. → Extended the RS brand into the city and was backed by a great partnership with The Rocks Pop-Up brand.

FUTURE SENIOR/FORMER YOUTH

→ Programmed as part of Waverley’s Seniors Week, this piece of community-engaged theatre sourced real-life testimony from residents of the area, aged 8-15 and 60+ The project allowed us to build a meaningful engagement with the senior community in particular.

203 → Artistic Associates worked alongside director/dramaturg Scarlet McGlyn to conceive, collect and create the work. → The production was constructed using headphone-verbatim and audio-cued performance techniques, where the two actors voiced pre-recorded interviews edited and fed to them through an earpiece. Using two actors of differing ages, Scarlet elected to flip the frame: 85 year old local actor Jill McKay voiced the words of a local 9 year old and young Aboriginal actor Alfie Gledhill gave voice to Bruce, an 83 year old resident of the SummitCare Home. → Marketing delivery of this project was compromised by the demands of the Spectrum Now festival. With the company split in too many directions and a limited amount of performances, attendance was low.

PROGRAM DEVELOPMENT

→ RS Artistic Associates commenced their engagement with the company. Joining the company in 2015 and working alongside a range of projects [including Future Senior/Former Youth, Summer Camp and Spectrum Now] are writer/performer/cultural activist Sopa Enari, performer/producer Eloise Snape, creative producer Jen Gardner, director/dramaturg Erin Taylor and playwright Melissa Lee Speyer.

GENERAL VENUE ACTIVITY DURING FUNDED PERIOD

→ Executive Director Michael Brown commenced negotiations with the Bondi Impact Church, who will become an anchor tenant from mid-year 2015. → RS also hired the venue to the Sydney Surf Film Festival so that they could build their audience beyond Manly.

MARKETING & MEDIA RELATIONS

MARKETING CAMPAIGN: JELLYBEAN ISLAND

→ Collateral: 1000 fliers and 50 posters → Distribution: Managed by internal staff → Online and Radio Advertising: None → Publicity: Leveraged internally by Associate Director Rachel Chant → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including STC, New Theatre, Griffin and Ensemble → Giveaways leveraged through blogsites/online spaces including Big Kids, Ella’s List and Kidsize Living → EDM to Vacation Care Centres represented a significant proportion of bookings → Cockatoo Island marketing leveraged internally by their team

MARKETING CAMPAIGN: SUMMER CAMP

→ Collateral: 500 fliers and 50 posters → Distribution: Managed by internal staff → Online and Radio Advertising: None → Waverley Council Communications: Bondi Arts and Culture Jan-Jun 2015 Program → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including STC, New Theatre, Griffin and Ensemble → Significant activation of social media channels especially Facebook

MARKETING CAMPAIGN: SPECTRUM NOW

→ Collateral: 5000 fliers and 100 posters 204 → Distribution: Mainwaring Distribution with a focus on taking the brand into new markets → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including Belvoir, STC, New Theatre, Griffin, Ensemble and the Old Fitz → Spectrum Now website which had over 600,000 hits → Printed listings in Spectrum Now program which went out to 240,000 people in the Sydney Metro area → Inclusion in the wider Spectrum Now PR and Marketing Campaign across TV and Radio Partners [valued at $4m] → http://www.smh.com.au/entertainment/spectrum-now-2015/spectrum-nows-feast-of- sitespecific-theatre-20150224-13mko0.html → http://www.smh.com.au/entertainment/spectrum-now-2015/spectrum-now-incar- performance-shotgun-transforms-commodore-into-dramatic-vehicle-20150313- 141zcm.html

MARKETING CAMPAIGN: FUTURE SENIOR/FORMER YOUTH

→ Collateral: 1000 fliers and 50 posters → Distribution: Managed by Mainwaring → Online and Radio Advertising: None → Reciprocal E-Marketing and Seat Drops through Sydney theatre companies, including STC, New Theatre, Griffin and Ensemble → EDM and activated Social Media channels

VENUE OPERATIONS

Please see attached report.

BAR & FUNCTIONS OPERATIONS

# DATE EVENT DETAIL TAKINGS 1 09.01.15 Flickerfest Festival Event Fee 2 07.02.15 Mark Morri Wedding 5000.00 3 06.03.15 Kultura Zionist Federation Event 798.00 4 28.03.15 Serena Renner Wedding 1096.00

SUMMARY Flickerfest was a large management project as per previous years, requiring significant facilitation from Michael Brown. Please see attached for narrative around this relationship ongoing.

Infrastructural capacity was stretched during this quarter due in large part to the activity out of the building. Without a staff member managing and steering events, this was a slow quarter beyond the implementation of bar service for Flickerfest.

CAPACITIES → Flickerfest occupancy was not recorded → Mark Morris wedding had approx. 90 guests → Kultura Zionist Federation event had 60 guests → Serena Renner wedding had 50 guests

205

COMPANY OPERATIONS

Following an extensive recruitment period, Shane Bosher was employed as the new Artistic Director. Bosher has demonstrated capacity in arts leadership and company redevelopment in his native New Zealand. For his stint as the Artistic Director of Silo Theatre, he is acknowledged as one of the greatest driving forces in the regeneration of the Auckland theatre sector. When he started in 2001, the company had a turnover of $110k and a crippling deficit. When he moved on in 2014, the company celebrated a turnover of $3.5million and was building reserves.

A leading brand development specialist, he built one of the most distinct and multi-faceted audiences in NZ, capturing the hearts and minds of people who wouldn’t normally consider themselves “theatregoers”. In his first year with that company alone, he more than trebled the audience through a targeted development and brand alignment program.

Michael Brown managed a handover process between Bosher and Acting Artistic Director Phil Spencer, who stayed on to curate the events for the Sydney Writers’ Festival and to program Bondi Feast.

Following many years of service to RS, Michael Brown tendered his resignation as Executive Director, effective from May 11 2015. This process of infrastructural renewal was planned to allow a new Executive Director to form a long-term co-CEO leadership team with Bosher.

BUDGET

ACQUITTAL OF RESIDENT THEATRE COMPANY FUNDING ROCK SURFERS THEATRE COMPANY : BONDI PAVILION THEATRE JANUARY 1 to MARCH 31 2015

INCOME WAVERLEY COUNCIL Resident Theatre Company Funding 18750.00

NET INCOME 18750.00

EXPENDITURE WAGES Creative Producer 6546.33 Technical Manager 4669.00 Bar Management 1004.33 ADMINISTRATION Internet Access 174.55 Public Liability Insurance 547.37 Online Accounting 114.54 Workers Compensation Insurance 305.49 MARKETING COSTS RS Marketing Campaign Material 5083.25

206 Online Marketing 303.82

NET EXPENDITURE 18748.682

NET PROFIT/LOSS 1.32

207 ROCK SURFERS 2016 PROGRAM

SUMMER CAMP JANUARY 11-30

Launched in 2014, the Summer Camp residency and workshop programme provides both space and assistance for local independent companies to develop and experiment with form. Strategically placed to coincide with the lead up to the Adelaide Fringe Festival, the programme also looks to assist Sydney-based productions with public showings of their works before travelling to Adelaide. Alongside these residencies and showings, Rock Surfers run affordable artist workshops which are open to the wider sector.

BONDI INDIE #1: BLACK FAGGOT/Victor Rodger FEBRUARY 2-20

The production that will launch BONDI INDIE 2016 is programmed to align with the Mardi Gras Festival. Multinesia is a global indigenous production company with South Pacific roots. They work with communities from Alaska to Australia to Aotearoa to tell authentic stories of our ancestors and other native people. Their signature work, BLACK FAGGOT is an award-winning exploration of culture and sexual identity which has played to capacity crowds across the world. Created by award-winning Samoan playwright Victor Rodger, it’s raw and emotional stuff, both filthy and funny. It’s a critique of the whiteness of Western gay culture, talking tolerance, but echoing the voice of minority cultures as they deal with the reality of being queer in a straight world.

BLACK FAGGOT was one of the hero pieces of the 2014 Brisbane World Theatre Festival, played both the Melbourne Fringe and Midsummer Festivals, the NZ International Festival and the Edinburgh Fringe, where it picked up multiple 5-star reviews. In 2014 it won Melbourne Fringe Awards for Innovation in Theatre and Innovation in Cultural Diversity.

Collaborating Company: Multinesia Artists: Victor Rodger, Kaarin Williams, Fasitua Amosa and Beulah Koale

PRIMARY AUDIENCE: GLBTI Audience SECONDARY AUDIENCE: Pacific Island Audience

BONDI INDIE #2: DANGEROUS LIAISONS/adapted by Stephen Nicolazzo FEBRUARY 24 – MARCH 13

Sex, gender and power-play riotously take to the stage in an opulent salon of debauchery. We’ve done Glenn Close, we’ve done Pamela Rabe, we’ve even done Cruel Intentions. Now, acclaimed independent company Little Ones brings its unique brand of high camp to this lethal drawing room tragi-comedy.

With heaving bosoms, panniered skirts, perilous hair, and a little Chaka Khan on the harpsichord, this all-women genderfuck take on the battle of the sexes is sure to arouse the senses. Inspired by Charles Ludlam's Ridiculous Theatre, Derek Jarman, high-fashion Rococo and the decadent period pieces of Peter Greenaway, this dazzling production was voted one of the best theatre experiences of 2014 by the Herald Sun when it premiered as part of Melbourne Theatre Company NEON.

Little Ones is a queer theatre collective formed by director Stephen Nicolazzo who create camp, kitsch and erotically charged events that celebrate the theatrical world and invite their audiences to sit back and join the festivities.

208 Collaborating Company: Little Ones Theatre Artists: Jo Porter, Stephen Nicolazzo, Eugyeene Teh, Katie Sfetkidis, Alexandra Aldrich, Zoe Boesen, Catherine Davies, Tom Dent, Brigid Gallacher, Amanda McGregor, Joanne Sutton, Janine Watson, Tessa Wolffenbuttel Pitt, Russell Goldsmith, Daniel Nixon and Kurt Phelan

PRIMARY AUDIENCE: GLBTI Audience focused on Lesbian Women SECONDARY AUDIENCE: Liberal Sophisticates aged 25-40

BONDI INDIE #3: HOME INVASION/Christopher Bryant MARCH 16 – APRIL 2

Carol’s been having nightmares. Nightmares in which an angelic JonBenét Ramsey calls out to her, asking for help. It’s okay though. She finds it easier to connect with her psychologist than her husband Anthony, anyhow. He’s carrying on an affair with Sam. And Sam’s own obsession with a recently deceased “Idol” contestant is growing dangerous.

Carol watches The Hills Have Eyes to unwind after work. Sam has fantasies of violent confrontations, and Anthony sold June the car she died in…

Part documentary and part black comedy, HOME INVASION tackles our cultural obsession with the darkness in all of us; our metaphorical crane of the neck as we pass a messy car crash. Shortlisted for the 2015 Griffin Award, this World Premiere production will be staged by hot new NIDA grad Jessica Arthur.

Artists: Jessica Arthur, Christopher Bryant, Debra Thomas and Laura Lucas

PRIMARY AUDIENCE: Women aged 25-40 SECONDARY AUDIENCE: Youth aged 18-25

THE NORMAL HEART/Larry Kramer APRIL 6 – MAY 7

1981. Before there was a name, before the world knew the epidemic that would become known as AIDS, there was a voice. Ned Weeks, activist and troublemaker, is furious. Enraged at the indifference of public officials and the dismissiveness of the gay community, he’s determined to save the world from itself. To win a war you have to start one.

A gripping drama based on fact, Rock Surfers is tackling this incendiary masterpiece as a provocation to the GLBTI community. As indifference builds once again and HIV diagnoses skyrocket, this is a necessary and political firebomb. Will we have to learn to survive a plague once again? Directed by Rock Surfers new Artistic Director, Shane Bosher.

Artists: Shane Bosher, Benjamin Brockman, Sara Wiseman, Craig Hall, Michael Whalley, Matt Minto and Simon London

PRIMARY AUDIENCE: GLBTI Audience focused on Young Gay Men SECONDARY AUDIENCE: Liberal Sophisticates aged 25-40

209 TRUCK STOP/Lachlan Philpott MAY 11-28

Sam and Kelly live out west. They spend their lives waiting for texts, for boyfriends and those bitches in Year Ten to leave school so they can have somewhere decent to hang. But the longest wait is till the end of school, and waiting can be deadly.

Bored one recess and with double maths looming, the girls escape through the hole in the fence. Hang out at the truck stop on the highway at the picnic table with the flies. Read graffiti. Talk about sex, prostitutes, Lady Gaga.

When a truck pulls up, their hearts race. The truckie’s kind of young. And hot. Three words are about to change their lives: I DARE YOU.

Based on real events, this gut-punch of a play by our own Lachlan Philpott shines the headlights on raunch culture, gender and growing up in the digital age. It also capitalises on Rock Surfers’ desire to provide audiences a deeper engagement with the canon of Australian playwriting through second productions.

Artists: Rachel Chant directs a trio of young women in their teens

PRIMARY AUDIENCE: Women aged 20-40 SECONDARY AUDIENCE: Young Women aged 14-20

BONDI INDIE #4: LETTERS HOME/Joe Lui JUNE 1-11

8 years ago, Joe Lui made a decision that would irrevocably alter his life. Instead of going back home to Singapore to do national service, he stayed in Perth, where he had earned his degree, to try and make a life as an artist. This decision means that he will never be able to return to the country of his birth without being arrested. His relationship with his family, already tenuous, was severed. LETTERS HOME is a reflection on that decision – its consequences, its ramifications – and through that, a wider comment on identity, culture and choice.

Following sell-out success at Melbourne’s Theatreworks in 2015 and Perth’s The Blue Room Theatre in 2014, Asian-Australian artist Joe Lui brings his existing offer with audiences to Sydney.

Collaborating Company: Renegade Artists: Joe Lui, Lisa McCready, Cherish Marrington, Mia Holton, Chris Donnelly and Meabh Walton

PRIMARY AUDIENCE: Asian-Australian audience SECONDARY AUDIENCE: Liberal Sophisticates aged 25-40

BONDI INDIE #5: THE KINGS COLLECTIVE JUNE 15 – JULY 2 Title to be confirmed

Rock Surfers are excited to be teaming up with this young, hot company of artists. Following the success of their award-winning productions of THIS IS OUR YOUTH and THE SUGAR SYNDROME, TKC continue to make a splash in Sydney’s independent scene with work that challenges audience through content, form and aesthetic.

210 BONDI FEAST JULY 5-23

Since 2012, the Bondi Feast has become one of the most successful and anticipated events on the Sydney Theatre calendar. Every nook and cranny of the Bondi Pavilion is used to house over 150 artists over 3 weeks. This annual festival is a cornerstone of our emerging artists program.

BONDI INDIE #6: YOU HAVE NO NEW MESSAGES/Nakkiah Lui, Steen Raskopoulos and others JULY 5-16

Tinder. Grindr. Gender politics. The right swipe. Date night has never been so complex.

The first date holds mystery, wonder, tragedy, danger and exhilaration. Seen through the eyes of some of Australia’s most prolific and rambunctious comedy talent, this is a kaleidoscope of perspectives on this oh-so- necessary rite of passage to the perfect relationship. Created and curated as the centrepiece of BONDI FEAST 2016.

Artists: Nakkiah Lui, Adele Vuko, Steen Raskopoulos, Sarah Bishop, Greta Lee, Florence Noble, Jeremy Brull, Kacie Anning, Emma Leonard and Christiaan Van Vuuren [Bondi Hipsters]

PRIMARY AUDIENCE: Women aged 20-45 SECONDARY AUDIENCE: Alternative Comedy audience

BONDI INDIE #7: THE LITTLE RED SUITCASE/Catherine Steele AUGUST 3-21

A little girl works in a factory in a faraway land. She dreams of a better life in a place called Australia. With the help of a magic little red suitcase, she risks everything to get there.

An intergenerational, multi-disciplinary piece of theatre combining music, puppetry, physical performance and projection which places image at the centre. Told without a single word spoken, this is truly inclusive and accessible theatre which articulates the migration challenge.

Collaborating Company: Apocalypse Theatre Company Artists: Catherine Steele, Dino Dimitriadis, Dominic Mercer and Tom Hogan

PRIMARY AUDIENCE: Children aged 6-10 years SECONDARY AUDIENCE: CALD Family Audiences

THE 7 STAGES OF GRIEVING/Wesley Enoch and Deborah Mailman AUGUST 17 – SEPTEMBER 10

Racism. Deaths in custody. Histories of violence. The anguish of land. The hope of meaningful reconciliation and not just lip service. Tear-streaked tales of tragedy go hand-in-hand with jubilant celebrations of simple survival. These are black stories from a black perspective. Told to everyone.

One Aboriginal everywoman invites you to face hard truths, join hands and grieve. She’ll share true and personal stories that keep on needing to be told. This is a dialogue about what separates and unites the Indigenous and non-Indigenous people of Australia. It is deadly. 211

Many of our great Indigenous artists have cut their teeth on this play. Deborah Mailman, Ursula Yovich, Leah Purcell, Wayne Blair, Lisa Flanagan. 21 years on, Rock Surfers will collaborate with the deadliest of Aboriginal next generation talents to create this vital production.

The company will build an Aboriginal and Torres Strait Islander Engagement Strategy to ensure we develop and implement best practice cultural protocols for the cultivation and production of this work, seeking advice and endorsement from industry champions such as Rhoda Roberts, Rachael Maza, Wesley Enoch, Nakkiah Lui, Wayne Blair and Leah Purcell to deepen the impact of the work on its intended community.

PRIMARY AUDIENCE: Aboriginal and Torres Strait Islander Audience SECONDARY AUDIENCE: Liberal Sophisticates aged 25-40

BONDI INDIE #8: DREAMS IN AN EMPTY CITY/Stephen Sewell SEPTEMBER 24 – OCTOBER 22

In the midst of an epic struggle between two malicious titans of the Australian business world, an innocent victim is being stalked by a perpetrator he can’t identify.

Love and innocence are compromised in a world of calculated brutality: a world where empires are built on financial speculation, where buildings are stacked against the skyline as quickly as others are torn down. And as the economic structure of this world strains and falters, we watch people scrambling for the life boats with all the frenzied desperation of the damned. This is a play for Sydney.

Stephen Sewell exposes the human capacity for good and evil in extremis, and in so doing, illuminates his morality with a clarity reminiscent of the brilliance and purity of medieval stained glass. Never before seen on Sydney’s mainstage, this is a work of audacious vision that now could only be articulated in an independent frame.

Collaborating Company: Don’t Look Away Artists: Phil Rouse, Anna Gardiner, Sian James-Holland and Stephen Carnell

PRIMARY AUDIENCE: Liberal Sophisticates aged 25-40 SECONDARY AUDIENCE: Traditional Sydney Subscription audience

ACTT GRADUATION SEASON OCTOBER 26 – DECEMBER 3 Venue Hire

212 THIS PAGE IS INTENTIONALLY BLANK

213 Council Meeting 20 October 2015

Report CM/7.6/15.10

Subject: Planning Agreement Policy 2014 (Amendment No. 1) Trim File No.: A15/0046 Author: Angela Hynes – Senior Strategic Planner Director: Peter Monks – Director, Waverley Futures

Recommendation:

That Council adopts for the purpose of exhibition the Planning Agreement Policy 2014 (Amendment No. 1) for a period of 28 days.

1. Executive Summary

The Planning Agreement Policy 2014 (Amendment No. 1) proposes changes to the Planning Agreement Policy 2014 to include a valuation methodology for assessing planning agreements, which are lodged alongside a planning proposal seeking to amend the development standards in the Waverley Local Environmental Plan 2012.

The purpose of the proposed valuation methodology is to ensure that 50% of the additional benefit resulting from a planning agreement is directed to a public benefit contribution to Council. This process currently applies to development applications, but the Policy currently does not provide clear guidance on this matter in relation to planning proposals.

2. Introduction/Background

The Planning Agreement Policy 2014 has been successfully utilised to negotiate and draft planning agreements accompanying Development Applications seeking a Clause 4.6 variation to Clause 4.4 Floor space ratio for an additional 15%. Since the implementation of the Policy, Council officers have identified some areas of assessment that require further clarification.

At the Operations Committee on 7 October 2014, Council considered a report that identified these additional matters requiring future review as follows:

• A methodology for valuing Planning Proposals and associated planning agreements; • Prepare guidelines on the consideration of planning agreements outside of the Bondi Beach and Bondi Junction precinct areas; • Update the template planning agreement and explanatory note document attached to the Policy; and • Formulate guidelines on the application of GST. • Prepare an Internal Procedure Manual to guide process and future negotiations.

The purpose of this report is to consider these matters.

2.1 Relevant Council Resolutions

Page214 1 Council Meeting 20 October 2015

Council or Committee Minute No. Decision Meeting & Date Operations Committee OC/5.2/14/10 That Council resolves to adopt the Planning Meeting 7 October Agreement Policy 2014 provided at Attachment 1 to 2014 this report, which will replace the Interim Voluntary Planning Agreement Policy 2013 subject to the following amendments: 1. On page 42 of the Committee Agenda, Section 3.3 Probity, dot point 1 be amended to read as follows: • “Inform any applicant about Council values and business ethics - specifically, about ethical behaviour appropriate to business dealings. A copy of Council's Statement of Ethics Policy (as amended from time to time) is attached at Appendix 7.” 2. On page 43 of the Committee Agenda, Section 3.3 Probity, add point (g) as follows: "(g) Where Council is the consent authority and an applicant has proposed to enter into a Planning Agreement, the development application must be determined by the Waverley Development Assessment Panel (WDAP), or the Joint Regional Planning Panel (JRPP) unless the matter is of minor significance as determined by the Director, Waverley Futures." 3. On page 47 of the Committee Agenda, Section 5.11 Methodology for valuing public benefits under a planning agreement be amended to read as follows: "Subject to section 2.4, unless otherwise agreed in a particular case, public benefits will be valued as follows:" 4. On page 47 of the Committee Agenda, Section 5.11.1 Title be amended as follows: "Provision of land or units", and its first sentence read as follows: "Where the benefit under a planning agreement is the provision of land for a public purpose, or units given to Council in perpetuity, the value of the benefit will be determined by an independent valuer who is experienced in valuing land in New South Wales (and who is acceptable to Council), on the basis of a scope of work which is prepared by Council." 5. On page 69 of the Committee Agenda, Appendix 7 Title be amended to read as follows:

Page215 2 Council Meeting 20 October 2015

"Waverley Council Statement Of Business Ethics (as amended from time to time)". Council Meeting 1312.12.7/13 A. Review Clause 4.4B of Waverley LEP 2012 in 10 December 2013 conjunction with the Department of Planning and Infrastructure and our legal representatives in order to ensure that: i. The value of any affordable housing incentive associated with future development is shared equitably between Council and developers. ii. The intent of any future amendment is the continuation of an affordable housing enabling provision in the Waverley Local Environmental Plan. iii. Seek the removal of "Area 1" from WLEP2012 and instead include a subclause in Clause 4.4B that the clause applies to areas zoned R3 Medium Density, R4 High Density and B4 Mixed Use. B. That subject to “A” above, a Planning Proposal be prepared and submitted to the Department of Planning and Infrastructure for a gateway determination seeking approval for the preparation of a draft Local Environmental Plan to amend WLEP 2012. C. However, if as a result of future discussions this is not possible, Clause 4.4b be repealed and objectives to deliver affordable housing be incorporated into the Planning Agreement Policy and/or Development Control Plan. D. That subject to a positive response from the Department of Planning and Infrastructure, the Planning Proposal be placed on public exhibition in accordance with the requirements of the Gateway determination. Finance, Ethics & F-1311.7/13 1. That Council resolve to publicly exhibit the Strategic Planning Planning Agreement Policy 2013 attached to this Committee report (Attachment 1) 5 November 2013 Council Meeting 1306.12.8 1. Council adopt the Interim Voluntary Planning 18 June 2013 Agreement Policy 2013 attached to this report (Attachment 1).

3. Discussion

Methodology for Valuing Planning Proposals

A draft methodology for valuing Planning Proposals and associated planning agreements has been prepared by Hill PDA and if adopted by Council will become Appendix 2 to the Planning Agreement Policy 2014 (Amendment No. 1) for public exhibition (refer to Attachment 1 to this Report). The draft valuation methodology specifies that 50% of the uplift resulting from a planning proposal is to form a public benefit contribution to Council through a planning agreement, which is similar to the process

Page216 3 Council Meeting 20 October 2015 which currently applies to development applications. The draft methodology is also consistent with standard practice and planning proposal considerations of other Councils.

This methodology will be tested in the negotiation of a planning agreement as part of a planning proposal that is currently lodged with Council for 194-214 Oxford Street & 2 Nelson Street, Bondi Junction.

Planning Agreements outside Precinct Areas

Council has successfully negotiated and executed planning agreements associated with development applications for sites outside of the designated Bondi Beach and Bondi Junction Precinct Areas (e.g. at 227-229 Old South Head Road). However, this was only because the development applications met the following criteria: • Satisfaction of the requirements of LEP Clause 4.6; • Appropriate delivery of a public benefit; and • The site is located close to an open space reserve or public park which has a direct nexus to the development. Development applications providing a planning agreement and seeking a Clause 4.6 variation to development standards on sites outside of the designated Precinct Areas have been successfully dealt with on a case by case basis. The Planning Agreement Policy 2014 appropriately addresses this matter and therefore no changes are required.

Planning Agreement & Explanatory Note Template

The Planning Agreement and Explanatory Note templates have been subject to ongoing review by Council’s solicitors when drafting PA & EN documentation for development applications. The changes to the templates are of an administrative and procedural nature. The Planning Agreement and Explanatory Note templates appended to the Policy have been reviewed and updated by Council’s solicitors accordingly. They are provided as Appendix 3 and Appendix 4 to the Planning Agreement Policy 2014 (Amendment No. 1) (refer to Attachment 1 to this report).

Internal Procedure Manual

An internal procedure manual for negotiating planning agreements alongside planning proposals has been prepared, which is summarised and referred to in the Policy (as highlighted in red text). The process is similar to that carried out for planning agreements lodged alongside a development application.

4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: L5 Buildings are well designed, safe and accessible and the new is balanced with the old. Strategy: L5c Consider the use of planning controls and agreements to provide improvements to built infrastructure. Deliverable: Opportunities to deliver public infrastructure through Voluntary Planning Agreements.

5. Financial impact statement/Timeframe/Consultation

Financial impact statement

Page217 4 Council Meeting 20 October 2015

The adoption of the valuation methodology for planning proposals has the potential to increase revenue to Council as it captures development scenarios that were not previously detailed in the Policy. The value captured through planning agreements associated with planning proposals will fund future infrastructure requirements of Council. The sporadic nature of planning proposals, however, makes it difficult to forecast the amount of contributions that may be captured.

Timeframe Following Council’s endorsement of the Planning Agreement Policy 2014 (Amendment No. 1) it is envisaged that public exhibition will be conducted for a period 28 days. The outcome of the public exhibition will be reported to Council in November/December.

It is envisaged that the Planning Agreement Policy 2014 (Amendment No. 1) will be adopted and in force December 2015.

Consultation • Public Exhibition - a copy of the Planning Agreement Policy 2014 (Amendment No. 1) will be available at the Customer Service Office, Library and on Council’s "Have Your Say" website. • Ongoing internal consultation has occurred with Hill PDA, Council’s solicitors and Lindsay Taylor Lawyers.

6. Conclusion

The Planning Agreement Policy 2014 (Amendment No. 1) will allow for greater surety in the negotiation of planning agreements as part of the planning proposal process. The policy has been drafted in accordance with legislation, Council's policies, plans and strategies

7. Attachment/s:

Attachment 1 - Planning Agreement Policy 2014 (Amendment No. 1)

Page218 5 Attachment 1 ‐ Planning Agreement Policy 2014 (Amendment No. 1)

Table of Contents

Table of Contents 1 Part 1 ‐ Policy Framework 1 1.1 Name of this Policy 1 1.2 Application of the Policy and commencement 1 1.3 Objectives of this Policy 1 1.4 What does the Policy set out? 1 1.5 Statutory framework 2 1.6 What are the mandatory requirements of a planning agreement? 2 1.7 Guiding principles 3 1.8 Terms and definitions used in this Policy 4 Part 2 ‐ Principles for Planning Agreements 5 2.1 Purposes of planning agreements 5 2.2 Principles underlying the use of planning agreements 6 2.3 What matters will the Council consider? 6 2.4 What will Council require to be provided under planning agreements? 7 2.5 Recurrent charges 7 2.6 Pooling of development contributions 7 2.7 Do other development contributions apply? 7 Part 3 ‐ Negotiation Procedures and Probity 9 3.1 Introduction 9 3.2 Steps in the negotiation process 9 3.3 Probity 10 Part 4 ‐ Notification and Exhibition 12 4.1 Public notification of planning agreements 12 4.2 Re‐notification 12 4.3 Public comment on planning agreements 12 Part 5 ‐ Implementation and Conditions 13 5.1 Preparation of the planning agreement 13 5.2 When is a planning agreement required to be entered into? 13 5.3 When will planning obligations arise? 13 5.4 Implementation agreements 13 5.5 Monitoring and review of a planning agreement 14 5.6 Modification or discharge of obligations 14 5.7 Assignment and dealings by the developer/proponent 14 5.8 Provision of security under a planning agreement 14 5.9 Registration of planning agreements 15 5.10 Dispute resolution 15 5.11 Methodology for valuing public benefits under a planning agreement 15 5.12 How will the Council seek to determine the amount of Monetary Contribution that may be payable for Developments with FSR above clause 4.4 of WLEP (the WLEP Provisions) 15 5.13 How will the Council seek to determine the amount of Monetary Contribution that may be payable for an amendment to the Waverley Local Environmental Plan 2012 16

219 Attachment 1 ‐ Planning Agreement Policy 2014 (Amendment No. 1)

Appendix 1 Valuation Methodology for Development Applications Appendix 2 Valuation Methodology for Planning Proposals Appendix 3 Planning Agreement Template Appendix 4 Explanatory Note Template Appendix 5 Bondi Beach and Bondi Junction Precinct Maps Appendix 6 Works for Planning Agreements Appendix 7 Flowchart of Planning Agreement Process for Development Applications Appendix 8 Waverley Council Statement of Business Ethics

220 Attachment 1 ‐ Planning Agreement Policy 2014 (Amendment No. 1)

Part 1 - Policy Framework

1.1 Name of this Policy This Policy is known as the Waverley Council Planning Agreement Policy 2014 (“the Policy”). It sets out Waverley Council’s policy and procedures relating to planning agreements under the Environmental Planning and Assessment Act 1979. 1.2 Application of the Policy and commencement This Policy applies to development applications lodged pursuant to Waverley Local Environmental Plan 2012 (“WLEP 2012”) and applications seeking a change to WLEP 2012 for land and development within the local government area of Waverley Council (“Council”) with particular application to the Bondi Junction Precinct and Bondi Beach Precinct Areas. Although Council will consider entering planning agreements in other parts of its local government area it is anticipated that most, if not all, planning agreements will relate to development in Bondi Junction Precinct and Bondi Beach Precinct Areas. This Policy was adopted by resolution of the Council on [insert date]. The Policy is effective from [insert date]. 1.3 Objectives of this Policy The objectives of this Policy are: (a) to establish a fair, transparent and accountable framework governing the use of planning agreements by the Council; (b) to explore the range and extent of development contributions made by development towards public facilities and other public benefits in the Council’s area; (c) to set out the Council’s specific policies and procedures relating to the use of planning agreements within the Council’s area; (d) to give all stakeholders in development greater involvement in determining the type, standard and location of public facilities and other public benefits; and (e) to facilitate public participation and to allow the community to gain an understanding of the benefits of appropriate planning agreements for the provision of public benefits. (f) to enhance the understanding within Council’s area as to possibilities for development and associated public benefits and planning benefits facilitated by planning agreements in the Bondi Junction Precinct Area and Bondi Beach Precinct Area. 1.4 What does the Policy set out? This Policy sets out the Council’s approach to the use of planning agreements through negotiation when considering development applications and applications for a change to WLEP 2012 in the Waverley area. Council is guided by the policy approach set out in the Department of Planning’s Practice Note titled Planning Agreements (19 July 2005) (“the Practice Note”) although it should be noted Council is not bound to follow the Practice Note. In particular, this Policy sets out  timing considerations in respect to planning agreements and procedures for negotiating and entering into planning agreements,  the circumstances in which the Council may consider entering into a planning agreement,

1 221 Attachment 1 ‐ Planning Agreement Policy 2014 (Amendment No. 1)

 the matters ordinarily covered by a planning agreement, the form of development contributions which may be sought under a planning agreement. Unless otherwise agreed in a particular case, development contributions negotiated as part of a development application or as part of a planning proposal will be valued or calculated as set out in Sections 5.12 and 5.13 (and detailed in Appendix 1 and Appendix 2).  examples of the kinds of public benefits which may be sought and, in relation to each kind of benefit, whether it involves a planning benefit,  the method for determining the value of public benefits,  whether money paid under different planning agreements is to be pooled and progressively applied towards the provision of public benefits to which the different agreements relate,  when, how and where public benefits may be provided with particular reference to the Bondi Junction Precinct Area and Bondi Beach Precinct Area,  probity measures, and  the Council’s policies on other matters relating to planning agreements, such as their review and modification, the discharging of the developer’s obligations under agreements, the circumstances, if any, in which refunds may be given, dispute resolution and enforcement mechanisms, and the payment of costs relating to the preparation, negotiation, execution, monitoring and other administration of agreements. 1.5 Statutory framework The current legal and procedural framework for planning agreements is set in Subdivision 2 of Division 6 of the Environmental Planning and Assessment Act 1979. Council is also bound by the provisions of Division 1A of Part 4 of the Environmental Planning and Assessment Regulation 2000. Section 93F sets out the circumstances under which a planning agreement may be entered into. It provides a planning agreement may be made between a planning authority (or two or more planning authorities) and a person (developer): a) who has sought a change to an environment planning instrument (such as a rezoning application); or b) who has made or proposes to make a development application; or c) who has entered into an agreement with or is otherwise associated with a person in one of the above two categories. 1.6 What are the mandatory requirements of a planning agreement? Section 93F(3) of the Act requires planning agreements to include provisions specifying: (a) a description of the land to which the agreement applies, (b) a description of: (i) the change to the environmental planning instrument to which the agreement applies, or (ii) the development to which the agreement applies, (c) the nature and extent of the provision to be made by the developer under the agreement, the time or times by which the provision is to be made and the manner by which the provision is to be made,

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(d) in the case of development, whether the agreement excludes (wholly or in part) or does not exclude the application of section 94 or 94A to the development, (e) if the agreement does not exclude the application of section 94 to the development, whether benefits under the agreement are or are not to be taken into consideration in determining a development contribution under section 94, (f) a mechanism for the resolution of disputes under the agreement, (g) the enforcement of the agreement by a suitable means, such as the provision of a bond or guarantee, in the event of a breach of the agreement by the developer The Act does not preclude a planning agreement containing other provisions that may be necessary or desirable in particular cases, except as provided by law. However, Council has prepared a template agreement that will form the basis for a planning agreement and this may be used as the basis for any agreement. This is attached as Appendix 3. Clause 25E(1) of the Regulation requires that an explanatory note must accompany a planning agreement that:  summarises the objectives, nature and effect of the proposed agreement, amendment or revocation, and  contains an assessment of the merits of the proposed agreement, amendment or revocation, including the impact (positive or negative) on the public or any relevant section of the public. 1.7 Guiding principles The Practice Note sets out guidelines and safeguards in the application of planning agreements. These include determining the planning agreements acceptability and reasonableness. As such attention will be directed towards:  proper or legitimate planning purposes, ordinarily ascertainable from the statutory planning controls and other adopted planning policies applying to development,  providing for public benefits that bear a relationship to development that are not wholly unrelated to the development and are located in the precinct area in which the development is located.  producing outcomes that meet the general values and expectations of the public and protect the overall public interest,  providing for a reasonable means of achieving the relevant purposes and outcomes and securing the benefits, and  protecting the community against planning harm. Offers by developers/proponents to enter into planning agreements and subsequent negotiations associated with applications should take place as early as possible in the application process. Generally the planning agreement should be negotiated and documented before lodgment of a development application/submission of a planning proposal to the Gateway so as to ensure a practical outcome for public notification (see 3.2 and Part 4). In addition, by way of safeguard, Council will seek to ensure probity of its processes involving planning agreements by ensuring applications involving planning agreements which involve Council land, or development applications made by or on behalf of Council, are independently assessed by an external planning consultant.

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1.8 Terms and definitions used in this Policy In this Policy, the following terminology is used: Act means the Environmental Planning and Assessment Act 1979.

Bondi Beach Precinct Area means the area shown in the attached map at Appendix 5.

Bondi Junction Precinct Area means the area shown in the attached map at Appendix 5.

Council means Waverley Council. developer is a person who has sought a change to an environmental planning instrument (which includes the making, amendment or repeal of an instrument (s93F(11)), or who has made or proposes to make a development application, or who has entered into an agreement with or is otherwise associated with such a person. development application has the same meaning as in the Act. development contribution means the kind of provision made by a developer under a planning agreement, being a monetary contribution, the dedication of land free of cost or the provision of any other material public benefit. explanatory note means a written statement that provides details of the objectives, nature, effect and merits of a planning agreement, or an amendment to or revocation of a planning agreement. instrument change means a change to an environmental planning instrument to facilitate a development the subject of a planning agreement. planning benefit means a development contribution that confers a net public benefit. public facilities means public infrastructure, facilities, amenities and services. planning obligation means an obligation imposed by a planning agreement on a developer requiring the developer to make a development contribution. planning proposal means an application to amend the development standard contained in the Waverley Local Environmental Plan 2012 proponent means the party that is responsible for lodging a planning proposal with Council.

Practice Note means the Practice Note on Planning Agreements published by the former Department of Infrastructure Planning and Natural Resources (July 2005). public includes a section of the public. public benefit is the benefit enjoyed by the public as a consequence of a development contribution.

Regulation means the Environmental Planning and Assessment Regulation 2000.

WLEP 2012 means the Waverley Local Environmental Plan 2012

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Part 2 - Principles for Planning Agreements

2.1 Purposes of planning agreements Section 93F(1) of the Act provides that a planning agreement is a voluntary agreement or other arrangement between one or more planning authorities and a developer under which the developer agrees to make development contributions towards a public purpose. The Council’s approach to the negotiation of planning agreements is based on the planning purpose of furthering the Council’s planning vision for the area as set out in the Waverley Strategic Plan and housing strategies (as amended from time to time). It is also informed by the mission and values of the Corporate Plan. The Bondi Junction Precinct Area and Bondi Beach Precinct Area in particular are the subject of a number of policies and plans aimed at upgrading public facilities, including infrastructure upgrading, improving and maintaining public areas including paths, footpaths and landscaping within the Precincts (refer to Appendix 6). When negotiating planning obligations the Council will adopt a flexible approach, generally taking into account Council vision and mission statement, the Strategic Plan’s general priorities set out in the programs to that Plan, the site circumstances and also the obligation preferences of the developer. Within the Bondi Junction Precinct Area and Bondi Beach Precinct Area (identified in maps at Appendix 5) as an incentive towards the provision of development contributions to be applied towards public benefits and planning benefits, Council may consider, subject to its statutory obligations and other matters set out in this Policy or any other relevant Council policies, plans or procedures: a) applications for development up to an additional area of 15% of maximum gross floor area permitted under clause 4.4 of WLEP 2012. Notwithstanding (a) above Council will consider each proposed planning agreement on a case by case basis. In circumstances where significant variation of applicable development standards is proposed consideration should be given to the preparation of a planning proposal to amend WLEP2012. The Council may negotiate a planning agreement with a developer/proponent in connection with any proposed application by the developer/proponent for an instrument change (eg rezoning application) or for development consent relating to any land in the Council’s area. The Council may also negotiate a planning agreement in association with another Council or another authority where relevant. The negotiation of a planning agreement is at the absolute discretion of the Council. Council will not enter a planning agreement unless it is satisfied that the proposed development is acceptable on planning grounds having regard to the general heads of consideration set out in Section 79C of the Act. Development that is unacceptable on planning grounds will not be given consent because of benefits offered by a developer. It is noted that any exceptions to relevant development standards will be assessed in accordance with the provisions set out in cl.4.6 of WLEP 2012.

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2.2 Principles underlying the use of planning agreements The Council’s use of planning agreements will be governed by the following principles: (a) Planning decisions will not be bought or sold through planning agreements. (b) The Council will not allow planning agreements to improperly fetter the exercise of its functions under the act, regulation or any other act or law. (c) The Council will not use planning agreements for any purpose other than a proper planning purpose. (d) Development that is unacceptable on planning grounds will not be permitted because of planning benefits offered by developers that do not make the development acceptable in planning terms. (e) The Council will not seek benefits under a planning agreement that are wholly unrelated to particular development. Development contributions obtained from planning agreements relating to development in the Bondi Junction Precinct Area will be applied in the Bondi Junction Precinct Area and development contributions obtained from planning agreements relating to developments on the Bondi Beach Precinct Area will be applied in the Bondi Beach Precinct Area. (f) The Council will not take into consideration planning agreements that are wholly unrelated to an application, nor will the Council give undue weight to a planning agreement. (g) The Council will not allow the interests of individuals or interest groups to outweigh the public interest when considering a proposed planning agreement. (h) The Council will not improperly rely on its position in order to extract unreasonable public benefits from developers under planning agreements. 2.3 What matters will the Council consider?

The matters that the Council may consider in any such negotiation may include, but not be limited to, the following: (a) Whether the planning agreement(s) meets the demands created by the development for new public infrastructure, amenities and services. (b) If inclusions in the development meet specific planning objectives of the Council. (c) If compensation is required for the loss of, or damage to, a public amenity, service, resource or asset caused by the development through its replacement, substitution, repair or regeneration. (d) Rectification of an existing deficiency in the existing provision of public facilities in the Council’s area is made. (e) Whether recurrent funding of public facilities is required or provided. (f) The extent to which the Council needs to monitor the planning impacts of development. (g) Whether planning benefits for the wider community accrue from the planning agreement. In respect to the Bondi Junction Precinct Area and Bondi Beach Precinct Area the extent to which the development or an amendment to the Waverley Local Environmental Plan 2012 may result in a public benefit and or planning benefit in terms of the public works

6 226 Attachment 1 ‐ Planning Agreement Policy 2014 (Amendment No. 1) contemplated in various Council policies and plans for the Bondi Junction Precinct Area and Bondi Beach Precinct Area or as set out in Appendix 6. The most important factor in deciding what planning obligations might be required is likely to be the size of the development or resulting uplift from an amendment to the Waverley Local Environmental Plan 2012, but other factors such as the location or the resulting type of development may be relevant. These will establish core information such as likely increases in population and demand for particular public services. This information will help the Council to determine the development application/planning proposal and to prepare the planning agreement. 2.4 What will Council require to be provided under planning agreements? Existing growth levels place strain on existing infrastructure which cannot be met by s94A contributions and Council has identified a range of infrastructure which either requires substantial upgrade or provision. The programs identified in Appendix 6 address these infrastructure requirements with respect to the Bondi Junction and Bondi Beach Precinct Areas. It is to be noted that, 10% of all planning agreement contributions will form a monetary contribution to Waverley’s Affordable Housing Program fund. Appendix 6 provides an outline of the potential works to which development contributions could be applied. It is also recognised that development contributions that facilitate works in addition to the works listed in Appendix 6 may be appropriate because negotiations for each proposed development will reflect the circumstances of each case and the needs created by the scale of proposed change. Consequently, Appendix 6 does not prevent development contributions being negotiated on a case by case basis, particularly where planning benefits are also involved. 2.5 Recurrent charges The Council may request developers/proponents, through a planning agreement, to make development contributions towards the recurrent costs of public facilities. Where the public facility primarily serves the development to which the planning agreement relates or neighbouring development, the arrangement for recurrent funding may be in perpetuity. Where the public facility or public benefit is intended to serve the wider community, the planning agreement may, where appropriate, only require the developer/proponent to make contributions towards the recurrent costs of the facility for a set period which will be negotiated according to the impact of the development. 2.6 Pooling of development contributions Where a proposed planning agreement provides for a monetary contribution by the developer/proponent, the Council may seek to include a provision permitting money paid under the agreement to be pooled with money paid under other planning agreements and applied progressively for the different purposes under those agreements. Pooling may be appropriate to allow public benefits, particularly essential infrastructure, to be provided in a fair and equitable way. 2.7 Do other development contributions apply? Generally the Council will not enter a planning agreement that excludes the application of s94 or s94A of the Act to development to which the agreement relates. This, however, is a matter for negotiation between the Council and a developer having regard to the particular circumstances of the case.

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However, where the application of s94 of the Act to development is not excluded by a planning agreement, the Council will generally not agree to a provision allowing benefits under the agreement to be taken into consideration in determining a development contribution under section 94.

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Part 3 - Negotiation Procedures and Probity

3.1 Introduction The Council’s negotiation system for planning agreements aims to be efficient, predictable, transparent and accountable. Council will seek to ensure that the final negotiation of planning agreements runs in parallel with applications for instrument changes or development applications so as not to unduly delay the approval. Where possible Council will publicly notify a planning agreement in the same manner and at the same time as the application for the instrument change or the development application to which it relates. Council’s preference is therefore to have the planning agreement negotiated and documented before it is publicly notified as required by the Act and Regulation. It is also preferable that a planning agreement is negotiated before lodgement of the relevant application and that it accompanies the application on lodgement. 3.2 Steps in the negotiation process The negotiation of a planning agreement will generally involve the following key steps which are outlined in Appendix 7: 1. Prior to the lodgement of the relevant application by the developer/planning proposal by the proponent, the Council and Developer/proponent (and any other relevant person) will decide whether to negotiate a planning agreement. The initial point of contact to discuss a planning agreement with Council will be the Director of Waverley Futures. 2. The parties will decide whether to appoint an independent person to facilitate or otherwise participate in the negotiations or aspects of it, and appoint such person. 3. A timetable for negotiations and the protocols and work practices governing their negotiations will be agreed between the parties. 4. The key issues for negotiation will be identified by the parties, and the negotiations over these issues will take place. 5. If agreement is reached, the developer/proponent (and any other relevant party) will prepare the proposed planning agreement including the explanatory statement, and provide a copy of it to the Council. 6. The parties may undertake further negotiation on the specific terms of the proposed planning agreement as necessary. 7. Once agreement is reached on the terms of the proposed planning agreement, the developer/proponent may then make the development application/planning proposal to the Council accompanied either by a copy of the proposed agreement or by an offer to enter into such an agreement with specifics of the agreement set out in detail. 8. The Council will publicly exhibit the development application/planning proposal and planning agreement in accordance with the Act. The Council may approve the development application/planning proposal and set out the conditions for the agreement or, if an agreement has been executed, set out in the consent/determination the terms of the agreement.

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The parties may be required to undertake further negotiations and, hence, a number of the above mentioned steps mentioned may need to be repeated as a result of the public notification process or its formal consideration by the Council in connection with the relevant application. For further information please see the flow chart set out in Appendix 7. Further, Council follow a detailed internal procedure for the negotiation and execution of planning agreements associated with development applications/planning proposals. Note that all costs associated with the negotiation of a planning agreement, such as the appointment of an independent person, are to be borne by the developer. It is also noted that where the value of the development exceeds $20 million the development application will be dealt with by the independent Joint Regional Planning Panel. 3.3 Probity Public probity is important to Waverley Council and it will ensure that the negotiation of any planning agreements is fair, transparent and is directed at achieving public benefits in an appropriate manner free of corruption. In this regard, Council will:  Inform any applicant about Council values and business ethics ‐ specifically, about ethical behaviour appropriate to business dealings. A copy of Council's Statement of Ethics Policy (as amended from time to time) is attached at Appendix 8.  Ensure that its communities understand the system and the Council’s role – specifically, how the planning agreements system operates and how Council will deal with developments/proposals objectively.  Notify planning agreements to ensure they are open and transparent – specifically, achieving maximum public awareness of the matters contained in a planning agreement(s) and the potential benefits of an agreement.  Ensure appropriate delegations and separation of responsibilities in considering development applications/planning proposals that involve planning agreements – specifically, the need to ensure processes adequately address the level of risk of corruption of a process while at the same time being appropriate to the likely level of risk.  Ensure that modifications to approved development should be subject to the same scrutiny as the original development application.  Ensure that Councillors and Council staff understand their varied roles, some of which have potential to conflict.  Take every step to ensure that conflicts of interest are ameliorated to the greatest extent possible – specifically, independent assessment by third parties where Council has an interest and not entering into any contractual arrangement which purport to guarantee outcomes that are subject to separate regulatory processes. Apart from the above procedures, further procedures that will be implemented to address these matters may also include, but not be limited by, the following procedures: (a) The Councilors will not be involved in the face to face negotiation of the agreement but will ultimately execute the planning agreement as part of their duties as Councilors. (b) A Council officer with appropriate delegated authority will negotiate a planning agreement on behalf of the Council in accordance with this Policy.

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(c) The Council will, in all cases, ensure that Council staff with key responsibility for providing advice on approvals, approving applications or ensuring compliance, do not have a role in the assessment of the commercial aspects of the agreement nor on the conditions of the planning agreement except where advice is required on matters relating to the conditions of consent for a particular proposal. (d) The Council may involve an independent person(s) to facilitate or otherwise participate in the negotiations or aspects of it, particularly where this will lead to a better planning outcome. (e) The Council will ensure that all negotiations with a developer/proponent and their consultants are sufficiently separated and documented. (f) Where the Council has a commercial stake in development the subject of an agreement, it will take appropriate steps to ensure that it avoids a conflict of interest between its role as a planning authority and its commercial interest in the development. (g) Where Council is the consent authority and an applicant has proposed to enter into a Planning Agreement, the development application must be determined by the Waverley Development Assessment Panel (WDAP), or the Joint Regional Planning Panel (JRPP) unless the matter is of minor significance as determined by the Director, Waverley Futures.

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Part 4 - Notification and Exhibition

4.1 Public notification of planning agreements In accordance with the Act, a planning agreement must be publicly notified and available for public inspection for a minimum period of 28 days. The Council may decide to notify a planning agreement for a longer period or shorter period as permitted by the Act. The Council will also notify the application to which a planning agreement relates in accordance with the Act. 4.2 Re‐notification The Council may publicly re‐notify and make available for public inspection a proposed planning agreement and the application to which it relates if, in the Council’s opinion, a material change is made to the terms of the agreement or the application after it has been previously publicly notified and inspected. Such a change may arise as a consequence of public submissions made in respect of the previous public notification and inspection of the agreement or the application, or their formal consideration by the Council, or for any other reason. 4.3 Public comment on planning agreements The Council encourages the public to make submissions on planning agreements. This will allow the Council to better understand local needs and permit fine tuning of the planning obligations set out in any planning agreement. Public submissions to proposed planning agreement notifications will be assessed by the Council when it considers whether it should enter the proposed planning agreement.

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Part 5 - Implementation and Conditions

5.1 Preparation of the planning agreement The Council will prepare a planning agreement relating to a particular application for an instrument change or development application. The Council uses a standard form of planning agreement on which every planning agreement is based which reflects the policies and procedures set out in this document (refer Appendix 3). This planning agreement will include an explanatory note (refer Appendix 4). The Council will require a planning agreement to make provision for payment by the developer of the Councils costs of and incidental to negotiating, preparing and entering into the agreement as well as administering and enforcing the agreement. 5.2 When is a planning agreement required to be entered into? A planning agreement is entered into when it is signed by all of the parties. The Council will usually require a planning agreement to be entered into as a condition of granting development consent to the development to which the agreement relates or as part of the Gateway process for a planning proposal. However, a planning agreement can be entered into at any time after the agreement is publicly notified in accordance with the Act and Regulation. 5.3 When will planning obligations arise? 5.3.1 Development Applications The Council will generally require a planning agreement to provide that the developer’s obligations under the agreement take effect when the first development consent operates in respect of development that is the subject of the agreement. 5.3.2 Planning Proposals There are two scenarios which are to be detailed in the terms of the planning agreement to ensure that the obligations of the agreement are fulfilled by the proponent of the planning proposal. (a) If the proponent of the planning proposal is also the development applicant and continues to develop the site, then the obligations of the planning agreement are to be met prior to construction certificate. Note: the planning agreement needs to detail Consumer Price Index increase as there may be a significant time gap between gazettal and construction certificate. (b) If the proponent of the planning proposal sells the site, the proponent is to meet the obligations of the planning agreement, particularly the delivery of developer contributions (i.e. payment of monetary contribution), upon the sale of the land. This is to be secured through the placement of a caveat on the land prior to the gazettal of the planning instrument. 5.4 Implementation agreements The Council may require an implementation agreement that provides for matters such as: (a) The timetable for provision of planning obligations under the planning agreement. (b) The design, technical specification and standard of any work required by the planning agreement to be undertaken by the developer. (c) The manner in which a work is to be handed over to the council.

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(d) The manner in which a material public benefit is to be made available for its public purpose in accordance with the planning agreement. 5.5 Monitoring and review of a planning agreement The Council will continuously monitor the performance of the developer’s/proponent’s obligations under a planning agreement and report them in accordance with the Act. 5.6 Modification or discharge of obligations The Council may agree to a provision in a planning agreement permitting the developer’s/proponent’s obligations under the agreement to be modified or discharged in the following circumstances: (a) The developer’s/proponent’s obligations have been fully carried out in accordance with the agreement, or (b) The development consent to which the agreement relates has lapsed, or (c) The development consent to which the agreement relates has been modified to such an extent that the planning obligations may not be appropriate, or (d) The performance of the planning agreement has been frustrated by an event or events beyond the reasonable control of the parties, or (e) The developer/proponent has fully and completely assigned the developer’s/proponent’s interest under the agreement in accordance with its terms, or (f) Other material changes affecting the operation of the planning agreement have occurred, or (g) The Council and the developer/proponent otherwise agree to the modification or discharge of the agreement. Such a provision will require the modification or revocation of the planning agreement in accordance with the Act and Regulation. 5.7 Assignment and dealings by the developer/proponent The Council will not permit the assignment of any or all of the developer’s/proponent’s rights or obligations under the agreement, nor will the Council permit any dealing in relation to any part or the whole of the land the subject of the agreement unless: (a) The developer/proponent has, at no cost to the Council, first procured the execution by the person with whom it is dealing of all necessary documents in favour of the Council by which that person agrees to be bound by the agreement as if they were a party to the original agreement, and (b) If the proposed dealing involves a mortgage, charge or other encumbrance in relation to the party’s right, title and interest in the land, such documents provide for an agreement by the person to the effect that they, and any receiver appointed by them, will not enjoy rights greater than those of that party, and (c) The party is not in breach of this Agreement. This does not affect the operation of any of other requirements of the agreement. 5.8 Provision of security under a planning agreement The Council will generally require a planning agreement to make provision for security to cover the developer’s/proponent’s obligations under the agreement. The form of security will generally be an unconditional bank guarantee from an Australian Bank in favour of the

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Council to the full value of the developer’s/proponent’s obligations under the Agreement and on terms otherwise acceptable to the Council. 5.9 Registration of planning agreements The Council may require a planning agreement to contain a provision requiring the developer/proponent to agree to registration of the agreement pursuant to s93H of the Act if the requirements of that section are satisfied. 5.10 Dispute resolution The Council will require a planning agreement to provide for mediation of disputes between the parties to the agreement before the parties may exercise any other legal rights in relation to the dispute. 5.11 Methodology for valuing public benefits under a planning agreement Subject to section 2.4, unless otherwise agreed in a particular case, public benefits will be valued as follows: 5.11.1 Provision of land or units for a public purpose Where the benefit under a planning agreement is the provision of land for a public purpose, or units given to Council in perpetuity, the value of the benefit will be determined by an independent valuer who is experienced in valuing land in New South Wales (and who is acceptable to Council), on the basis of a scope of work which is prepared by Council. All costs of the independent valuer in carrying out such a valuation will be borne by the developer/proponent. 5.11.2 Carrying out of works for a public purpose Where the benefit under a planning agreement is the carrying out of works for a public purpose, the value of the benefit will be determined by an independent quantity surveyor (who is acceptable to Council), on the basis of the estimated value of the completed works being determined using the method that would ordinarily be adopted by a quantity surveyor. Council will prepare the scope of work for the independent quantity surveyor. All costs of the independent quantity surveyor in carrying out the work will be borne by the developer/proponent. 5.11.3 Other public benefit Where the benefit under a planning agreement is the provision of public benefit other than under 5.11.1 or 5.11.2, Council and the Developer/proponent will negotiate the manner in which the benefit is to be valued for the purposes of the agreement. 5.12 How will the Council seek to determine the amount of Monetary Contribution that may be payable for Developments with FSR above clause 4.4 of WLEP (the WLEP Provisions) The Council and the Developer will negotiate in this regard. Generally the value of 50% of the increase in net value to the development arising from an increase in FSR beyond WLEP 2012 provisions in clause 4.4 may be considered an appropriate contribution. The value of the benefit will be determined by an independent valuer who is experienced in valuing land in New South Wales (and who is acceptable to Council). All costs of the independent valuer in carrying out such a valuation will be borne by the Developer. The methodology used to determine net value will generally be calculated by determining the gross sale value of the proposed additional lots less the costs of construction.

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5.13 How will the Council seek to determine the amount of Monetary Contribution that may be payable for an amendment to the Waverley Local Environmental Plan 2012 The Council and the Proponent will negotiate in this regard. Generally the value of 50% of the value add from the planning proposal may be considered an appropriate contribution. The value of the value add will be determined by an independent valuer who is experienced in valuing land in New South Wales (and who is acceptable to Council). All costs of the independent valuer in carrying out such a valuation will be borne by the proponent. The methodology used to determine value add will generally be calculated by determining the Residual Land Value resulting from the planning proposal less the Base Case.

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APPENDIX 1 Valuation Methodology for Development Applications under Waverley Council's Planning Agreement Policy 2015

There are two components that will make up the valuation. These are:

1. The valuation (end sale value) of the bonus (marginal) floor space; and

2. Assessment of the marginal costs (to be deducted from the marginal revenue in order to calculate marginal profit);

Component 1 must be done by fully qualified Valuers. It is recommended that two Valuers are appointed, one on behalf of Council and the other on behalf of the applicant. The costs of the commissioning should be shared between Council and the applicant. The adopted valuation figures is to be the average of the two valuations.

Component 2 must be done by fully qualified quantity surveyors (QS). It is recommended that two consultants are appointed, one on behalf of Council and the other on behalf of the applicant. The costs of the commissioning should be shared between Council and the applicant. The adopted cost estimates is to be the average of the two QS estimates.

The principles of valuation of the two components are detailed below:

1. Component 1 – Value of Floor Space Bonus

1.1. The Valuer is to provide the end sale value of the bonus floor space. This refers to the additional apartments plus their ancillary car parking spaces.

1.2. Where there was a bonus on the height of the building then the bonus apartments will be on the upper most levels of the building. Alternatively it may be on the levels immediately below the penthouse and sub‐penthouse levels (given that a premium may be attached to the penthouse and sub‐penthouse levels – refer to example in Paragraph 1.6 below).

1.3. The marginal value (or value of the bonus floor space measured in dollars per square metre) should not be less than average value (the building’s total value divided by total floor area).

1.4. The bonus floor space does not necessarily have to be identified in “whole” apartments. It can be identified in fractions of apartments or even in square metres.

1.5. The valuation is to take into consideration the specification and quality of finish of the bonus apartments.

1.6. An acceptable method of measure is the difference between the total value of the apartments without the bonus floor space and the total value of the apartments with the bonus floor space.

In the example below a bonus floor space provides an additional increase in the internal leasable area of 14.9% through an increase of building height (one additional floor) plus a slight widening of the building. The result is an increase in the end value by 15.8%.

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Building Without Bonus Floor Space Building With Bonus Floor Space Level Sqm $/sqm $m Level Sqm $/sqm $m 12 300 12,000 3.6 11 300 12,000 3.6 11 425 11,000 4.7 10 400 11,000 4.4 10 525 10,200 5.4 9 500 10,000 5.0 9 525 10,000 5.3 8 500 9,800 4.9 8 525 9,800 5.1 7 500 9,600 4.8 7 525 9,600 5.0 6 500 9,400 4.7 6 525 9,400 4.9 5 500 9,200 4.6 5 525 9,200 4.8 4 500 9,000 4.5 4 525 9,000 4.7 3 500 8,500 4.3 3 525 8,500 4.5 2 500 8,000 4.0 2 525 8,000 4.2 1 500 7,500 3.8 1 525 7,500 3.9 TOTAL 5,200 48.5 TOTAL 5,975 56.2 Margin 775 7.7 % Increase 14.9% 15.8%

1.7. The marginal value shall be the actual price exchanged. Where the apartments have not been exchanged then the market value should be the listed or asking price. If there are no listed or asking prices then the value shall be estimated by the Valuer based on market evidence.

1.8. Market evidence should include any pre‐sales in the building and/or recent sales and pre‐ sales of comparable apartments in other buildings in the locality.

1.9. The Valuer shall deduct (from the end value of the bonus floor space) GST at one eleventh of the gross end sale value and any other costs on sale such as sales commission and legal costs. Generally these costs will be no more than 3.0% of gross end sale value.

1.10. The result is the expected marginal net sale proceeds from the bonus floor space.

2. Component 2 – Marginal Cost to Design and Construct

2.1. The QS shall provide an estimate of the marginal cost of construction relating to the bonus floor space and bonus car parking spaces.

2.2. This simplest method to calculate marginal cost is the pro‐rata of the total building cost based on bonus floor space divided by total GFA plus a pro‐rata of the car parking cost based on number of parking spaces allocated to the bonus units divided by total car parking spaces.

2.3. Various site costs including landscaping, driveways, fencing and external works shall be excluded since these costs are not marginal.

2.4. The QS and/or Valuer shall then add the marginal design costs, application fees, marketing and advertising costs and other ancillary costs. Again this would be a pro‐rata of total costs.

2.5. The QS and/or Valuer shall then add the monetary contributions under Section 94A in relation to the bonus floorspace (if paid or is to be paid).

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2.6. The QS and/or Valuer can then add finance and interest costs again using the pro‐rata method. The method for showing interest calculation must be provided using cash flow or other appropriate method of calculation.

2.7. Land cost and profit margins are not to be included as these are not marginal costs.

2.8. GST on costs is to be excluded since this will be returned to the developer in the form of input credits.

2.9. The result is the total estimated cost in delivering the marginal floor space.

The formula for calculating the profit from the bonus floor space is: Marginal net sale proceeds less Marginal cost to Construct

50% of the profit from the bonus floor space is to be provided as a negotiated form of public benefit through a Planning Agreement.

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APPENDIX 2 Valuation Methodology for Planning Proposals under Waverley Council's Planning Agreement Policy 2015

There are two components that will make up the valuation. These are:

3. The Base Case; and

4. Residual Land Value.

Both components must be done by fully qualified Valuers. It is recommended that two Valuers are appointed, one on behalf of Council and the other on behalf of the applicant. The costs of commissioning the Valuers should be shared between Council and the applicant. The adopted valuation figures is to be the average of the two valuations.

The principles of valuation of the two components are detailed below:

1. Component 1 – Base Case

1.1. The Base Case is the value of the land under the current zoning (assuming in perpetuity). The value under the base case should be assessed on the site’s highest and best use permissible under the current zoning. The highest and best use may, or may not be, the current use of the land.

1.2. The Valuer is required to test and determine the highest and best use of the land. The base case is to assume that the current zoning on the land and the development standards under the current instruments will remain in perpetuity. The planning proposal itself must not affect the base case.

1.3. Standard valuation practices shall apply and at least two methods of valuation should be used. Comparable sales should be one of the methods applied unless there is insufficient evidence. When using comparable sales evidence the Valuer must ensure that the sale prices are not affected by planning proposals or draft instruments that are not related to the base case – or at least make reasonable allowances / adjustments.

1.4. If the subject site was sold recently then the purchase price can be adopted provided that the price was not inflated as a result of the planning proposal.

2. Component 2 – Residual Land Value

2.1. The Valuer shall estimate the value of the land under the planning proposal using the residual land valuation method. The preferred method for calculating the RLV is discounted cash flow modelling using proprietary software like Estate Master DF or similar. A simple developer’s profit model may be acceptable for small‐scale single‐ staged developments.

2.2. The assumptions in the RLV calculations must be reasonable and based on industry averages.

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2.3. If there are no listed or asking prices then the end sale values shall be estimated by the Valuer based on comparable market evidence.

2.4. Market evidence should include any recent pre‐sales in the building and/or recent sales and pre‐sales of comparable apartments in other buildings in the locality.

2.5. Estimated construction costs must be supported by a Quantity Surveyor’s report. Construction contingency should be no greater than 5%. Soft costs may be included such as design costs, application fees, authority fees, development management, marketing and advertising and finance establishment costs.

2.6. In calculating the RLV the project start date should assume the land is zoned appropriately (ie the zone that is being proposed).

2.7. The RLV should exclude any discounting during the rezoning period as the payment under the VPA will not be made until construction certificate. A typical development program should be assumed that allows reasonable time for development approval, certification and construction. Council will not accept a program that appears conservative or pessimistic. The table below provides a suggested range of project lives for a single stage project. Any significant departure in project life requires support of evidence.

Construction Cost Approvals and Construction (months) Documentation (months)

Under $20m 8‐9 10‐14

$20m to $40m 9‐11 14‐17

Above $40m 10‐12 18‐20

2.8. It is recognised that these timeframes can vary and are impacted by building height and number of basement levels.

2.9. For a short single staged development a developer’s profit or “back of envelope” method rather than a cash flow model may be acceptable. Using this method the RLV will be derived from the target profit/risk margin. If this method is used the interest should be calculated as follows:

Interest Cost = (Total Project Costs excluding land & GST) X (Interest Rate / 12) X (Months of Construction) X 50%.

2.10. The RLV model should preferably show both the development margin and Project IRR on the cash flow before interest. Reasonable industry standard hurdle rates should be applied. Generally a target margin (on project costs) of 15% to 25% and a target IRR of 16% to 20% should apply but this depends upon the levels of market risk and other project risks.

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The formula for calculating the value add from the planning proposal is: Residual Land Value minus the Base Case

50% of the value add from the planning proposal is to be provided as a negotiated form of public benefit through a Planning Agreement.

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APPENDIX 3 (Clause 1.6) Planning Agreement Template

PLANNING AGREEMENT NO. ______Section 93F of the Environmental Planning and Assessment Act, 1979

THIS AGREEMENT is made on 2015

PARTIES

WAVERLEY COUNCIL of Cnr Paul Street and Bondi Road, Bondi Junction NSW 2022 (Council”) AND NAME (A.C.N. #) of Address (“Developer”)

BACKGROUND

A. The Developer is the registered proprietor of the Land.

B. The Council is the local authority constituted under the Local Government Act 1993 and the planning and consent authority constituted under the Act.

C. The Developer has made or caused to be made a Development Application to the Council for the Development Consent to carry out the Development on the Land.

D. The Development Application was accompanied by an offer by the Developer to enter into a voluntary planning agreement to make the Development Contribution to be applied by the Council towards the Public Purpose if the Development Consent was granted.

E. This Agreement is consistent with the Developer’s offer referred to in Recital D.

OPERATIVE PROVISIONS:

1 DEFINITIONS AND INTERPRETATION 1.1 Definitions

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In this Agreement unless the context otherwise requires: “Act” means the Environmental Planning and Assessment Act 1979 (NSW) “Agreement” means this agreement; “Bank Guarantee” means an irrevocable and unconditional undertaking by a trading bank approved by the Council to pay the Development Contribution amount on demand without an expiry or end date and containing terms and conditions acceptable to Council and in accordance with clause 9 of this Agreement. “Business Day” means a day that is not a Saturday, Sunday or public holiday, on which banks are open for general services in Sydney, New South Wales; “Certifying Authority” means any accredited private certifier including where appropriate, a Principal Certifying Authority (PCA) appointed or to be appointed to certify the Development or any aspect of it; “Council” means Waverley Council and herein includes any local government authority with which that Waverley Council may merge or any other local government authority responsible for a local government area that the Lot Burdened is located within. “Construction Certificate” means any construction certificate in respect of the Development Consent; “Development” means the development the subject of the Development Application and which is described in Item 4 of the Schedule;

“Development Application” means the development application described in Item 3 of the Schedule;

“Development Consent” has the same meaning as in the Act and means Council’s approval of the Development Application described in Item 3 of the Schedule; “Development Contribution” means the amount of money referred to in Item 5 of the Schedule. “Development Contribution Date” means the time the Development Contribution is to be paid as specified in Item 8 of the Schedule; “GST” has the same meaning as in the GST Law. “GST Law” has the meaning given to that term in A New Tax System (Goods and Services Tax) Act 1999 (Cth) and any other Act or regulation relating to the imposition or administration of the GST. “Land” means the land described in Item 2 of the Schedule. “Development Application” means the application referred to in Item 4 of the Schedule. “Development Consent” means Council’s approval of the Development Application. “Party” means a party to this Agreement including their successors and assigns.

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“Public Purpose” for the purpose of this Agreement means the public purpose described in Item 6 of the Schedule. “Registration Application” means an application for registration of this Agreement as a planning agreement on the title of the Land pursuant to Section 93H of the Act in a form approved by the Registrar General. “Schedule” means the schedule to this Agreement.

1.2 Interpretation In the interpretation of this Agreement, the following provisions apply unless the context otherwise requires:

(a) Headings are inserted for convenience only and do not affect the interpretation of this Agreement;

(b) A reference in this Agreement to a business day means a day other than a Saturday or Sunday on which banks are open for business generally in Sydney, New South Wales;

(c) If the day on which any act, matter or thing is to be done under this Agreement is not a business day, the act, matter or thing must be done on the next business day;

(d) A reference in this Agreement to dollars or $ means Australian dollars and all amounts payable under this Agreement are payable in Australian dollars;

(e) A reference in this Agreement to any law, legislation or legislative provision includes any statutory modification, amendment or re‐enactment, and any subordinate legislation or regulations issued under that legislation or legislative provision;

(f) A reference in this Agreement to any agreement, Agreement or document is to that agreement, Agreement or document as amended, novated, supplemented or replaced;

(g) A reference to a clause, part, schedule or attachment is a reference to a clause, part, schedule or attachment of or to this Agreement;

(h) An expression importing a natural person includes any company, trust, partnership, joint venture, association, body corporate or governmental agency;

(i) Where a word or phrase is given a defined meaning, another part of speech or other grammatical form in respect of that word or phrase has a corresponding meaning;

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(j) A word which denotes the singular denotes the plural, a word which denotes the plural denotes the singular, and a reference to any gender denotes the other genders;

(k) References to the word ‘include’ or ‘including’ are to be construed without limitation.

(l) A reference to this Agreement includes the agreement recorded in this Agreement; and

(m) A reference to a party to this Agreement includes a reference to the servants, agents and contractors of the party, and the party’s successors and assigns.

2 PLANNING AGREEMENT UNDER THE ACT The Parties to this Agreement agree that it is a planning agreement governed by Subdivision 2 of Division 6 of Part 4 of the Act.

3 APPLICATION OF THIS AGREEMENT This Agreement applies to the Land and the Development.

4 OPERATION OF THIS AGREEMENT 4.1 This Agreement does not take effect until the Development Consent is granted by the Council.

4.2 If they have not already done so the Parties must execute this Agreement as soon as possible after the Development Consent is granted and prior to any Construction Certificate issuing.

5 DEVELOPMENT CONTRIBUTION 5.1 The Developer agrees to make, and the Council agrees to accept, the Development Contribution to be applied for the Public Purpose.

5.2 The Developer must pay the Development Contribution to the Council by bank cheque on or before the Development Contribution Date and time is essential in this respect.

6. APPLICATION OF DEVELOPMENT CONTRIBUTION 6.1 The Council will apply the Development Contribution towards the Public Purpose as soon as practicable.

7. APPLICATION OF SECTIONS 94 AND 94A OF THE ACT TO THE DEVELOPMENT

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7.1 This Agreement does not exclude the application of Sections 94, 94A or 94EF of the Act to the Development. 7.2 The Development Contribution provided by the Developer will not be taken into consideration in determining any development contribution under Section 94 of the Act.

8 REGISTRATION OF THIS AGREEMENT 8.1 The Parties agree this Agreement is to be registered by the Registrar General as provided for in section 93H of the Act. 8.2 The Developer warrants that it has done everything necessary to enable this Agreement to be registered under section 93H of the Act. 8.3 Without limiting clause 8.2, the Developer warrants that it has obtained the express written consent to the registration of this Agreement under section 93H of the Act from: (a) If this Agreement relates to land under the Real Property Act 1900, each person who has an estate or interest in the Land registered under that Act; or (b) If this Agreement relates to land not under the Real Property Act 1900, each person who is seized or in possessed of an estate or interest in the Land. 8.4 Prior to the issue of a Construction Certificate, the Developer will at its cost arrange and effect registration of this Agreement under s93H upon the title to the Land and as soon as possible following execution of this Agreement: (a) deliver to the Council the Registration Application in registrable form noting the Council as applicant and executed by the Developer and any other person the subject of the warranty in clause 8.3; (b) lodge or cause to lodged the title deed with LPI and advise Council of the production number; (c) provide the Council with a cheque in favour of Land & Property Information, NSW for the registration fees for registration of this Agreement; and (d) provide the Council with a cheque in favour of the Council for its costs, expenses and fees incurred or to be incurred in connection with the preparation of this Agreement and any documents, form or instrument created or to be created in accordance with the provisions of this Agreement. (e) and take any other necessary action so as to ensure this Agreement is registered on the title to the Land prior to the issue of a Construction Certificate. 8.5 Upon compliance with clause 8.4 by the Developer the Council will promptly lodge the Registration Application with the Registrar General.

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8.6 The Parties will co‐operate with each other to ensure that the Agreement is registered by the Registrar General. 8.7 Upon payment of the Development Contribution or surrender of the Development Consent, the Developer may request the removal of the dealing created by registration of the Agreement from the title to the Land. The Council will not withhold its consent to such removal, provided that the terms of this Agreement have been complied with and the Developer pays all costs, expenses and fees of the Council relating to such removal. 8.8 Should payment of the Development Contribution or surrender of the Development Consent occur on or before the date of this Agreement and prior to issue of a Construction Certificate, then there will be no obligation to register this Agreement in accordance with this clause. 8.9 Upon registration of this Agreement by the Registrar General, this Agreement is binding on, and is enforceable against the owner of the Land from time to time as if each owner for the time being had entered into this Agreement.

9 BANK GUARANTEE 9.1 Provision of Bank Guarantee (a) On the date of this Agreement and before any application for any Construction Certificate the Developer must deliver to the Council a bank guarantee (“Bank Guarantee”), which must be: (i) irrevocable and unconditional; (ii) with no expiry date; (iii) issued in favour of the Council; (iv) for an amount equivalent to the Development Contribution set out in item 5 of the Schedule; (v) drafted to cover all of the Developer’s obligations under this Agreement; and (vi) on the terms otherwise satisfactory to the Council and in a form and from an institution approved by the Council. (b) The Developer acknowledges that the Council enters into this Agreement in consideration of the Developer providing the Bank Guarantee as a security for the performance of all of the Developer’s obligations under this Agreement, including without limitation the delivery of the Development Contribution to Council in accordance with this Agreement.

9.2 Calling on Bank Guarantee

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(a) The Council may call on the Bank Guarantee in the event that the Developer: (i) fails to make a payment of any part of the Monetary Contributions in accordance with this Agreement or any other amount payable under this Agreement by its due date for payment ; or (ii) breaches any other term or condition of this Agreement, and fails to remedy the relevant failure or breach within 7 days after the Council’s notice. (b) If the Council calls on the Bank Guarantee as a result of the Developer’s failure to pay any amount due under this Agreement, then the Council will apply the amount received pursuant to its claim on the Bank Guarantee in satisfaction of the Developer’s obligation to pay the relevant amount.

9.3 Return of Bank Guarantee Provided that the Developer has complied with its obligations under this Agreement including payment to the Development Contribution the Council will return the Bank Guarantee to the Developer.

10 REVIEW OF THE AGREEMENT 10.1 The Parties agree that, subject to section 93G of the Act, this Agreement can be reviewed and amended at any time by mutual agreement.

11 DISPUTE RESOLUTION 11.1 If any Dispute arises out of or in connection with this Agreement, the following procedure must be followed in order to resolve it: (a) either party may give written notice of the dispute to the other party. A representative nominated by each party must meet within five (5) Business Days of receipt of that notice and attempt in good faith to resolve the dispute; (b) if the dispute is not resolved between the nominated representatives within ten (10) Business Days of receipt of the notice referred to in clause 11.1(a), then the dispute will be notified to the relevant divisional manager (or officer holding the equivalent position) of each party who must meet and attempt in good faith to resolve the dispute within five (5) Business Days of the date of receipt of that notice; and (c) if the dispute remains unresolved within ten (10) Business Days of receipt of the notice referred to in clause 11.1(b), notice will be given to the Chief Executive Officers

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(or officer holding an equivalent position) of each party who must meet and attempt in good faith to resolve the dispute within five (5) Business Days of the receipt of that notice. (d) For the purposes of this clause, a meeting may take place by telephone or other means of communication.

11.2 If the parties fail to resolve the dispute after following the procedures set out in clause 11.1, then they must agree on the appropriate method of alternative dispute resolution (which may include expert determination or mediation) within ten (10) Business Days of the date of the final meeting held in accordance with clause 11.1(c).

11.3 If the parties select expert determination as the method of resolving the dispute, the expert must act as an expert and not an arbitrator, his determination will be binding upon the parties unless otherwise agreed and his costs must be shared equally between the parties.

11.4 If the parties fail to agree on the appropriate method of alternative dispute resolution in accordance with clause 11.2, the dispute must be referred for mediation to a mediator nominated by the then current Chairman of the Australian Commercial Disputes Centre in Sydney (ACDC), or, if ACDC no longer exists, the chairman of a reputable commercial dispute resolution body, as agreed between the council and the Developer, or if same cannot agree, nominated by the Council. The role of the mediator is to assist in the resolution of the dispute and the mediator may not make a decision which is binding on the parties.

11.5 The costs associated with appointing the mediator under clause 11.4 must be shared equally between the parties.

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12. ENFORCEMENT 12.1 Nothing in this Agreement (including Clauses 10 and 11) prevents the Council from exercising any function under the Act or any other Act or law relating to the enforcement of any aspect of this Agreement (including the breach of this Agreement by the Developer) or any matter to which this Agreement relates.

11.2 Until such time as the Development Contribution has been paid in full, an Occupation Certificate must not be issued and the Developer must: (a) notify the Council in writing of the name and contact details of any Certifying Authority to which it has applied for an Occupation Certificate at the same time that such application is made; (b) at the time it lodges any application for an Occupation Certificate notify the Certifying Authority in writing of the existence and terms of this Agreement; (c) procure and provide to Council a written acknowledgement from the Certifying Authority addressed to Council confirming that the Certifying Authority will not issue an Occupation Certificate until Council provides written confirmation that the Development Contribution has been paid; and (e) not rely on any Occupation Certificate in respect to the Development.

11.3 The Developer acknowledges and agrees that Council has a caveatable interest in the Land from the date of the Development Consent and shall be entitled to lodge and maintain a caveat on the title to the Land notifying Council’s interest created by this Agreement until the Development Contribution is paid in full.

12. NOTICES

12.1 Any notice, consent, information, application or request that must or may be given or made to a Party under this Agreement is only given or made if it is in writing and sent in one of the following ways: (a) delivered or posted to that Party at its address set out in Item 9 of the Schedule; (b) faxed to that Party at its fax number set out in Item 9 of the Schedule; or (c) emailed to that Party at its email address set out in Item 9 of the Schedule.

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12.2 If a Party gives the other Party 3 business days notice of a change of its address or fax number, any notice, consent, information, application or request is only given or made by that other Party if it is delivered, posted or faxed to the latest address or fax number.

12.3 Any notice, consent, information, application or request is to be treated as given or made at the following time: (a) if it is delivered when it is left at the relevant address; (b) if it is sent by post, 2 business days after it is posted; and (c) if it is sent by fax, as soon as the sender receives from the sender’s fax machine a report of an error free transmission to the correct fax number.

12.4 If any notice, consent, information, application or request is delivered, or an error free transmission report in relation to it is received, on a day that is not a business day, or if on a business day, after 5pm on that day in the place of the Party to who it is sent, it is to be treated as having been given or made at the beginning of the next business day.

13. APPROVALS AND CONSENT Except as otherwise set out in this Agreement, and subject to any statutory obligations, a Party may give or withhold an approval or consent to be given under this Agreement in that Party’s absolute discretion and subject to any conditions determined by the Party. A Party is not obliged to give its reasons for giving or withholding consent or for giving consent subject to conditions.

14. ASSIGNMENT AND DEALINGS Until the Development Contribution is paid in full, the Developer cannot sell, transfer, assign, novate, charge, encumber or otherwise deal with the Land or attempt or purport to do so.

15. ENTIRE AGREEMENT This Agreement contains everything to which the Parties have agreed in relation to the matters it deals with. No Party can rely on an earlier document, or anything said or done by another Party, or by a director, officer, agent or employee of that Party, before this Agreement was executed, except as permitted by law.

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16. FURTHER ACTS Each Party must promptly execute all documents and do all things that another Party from time to time reasonably requests to affect, perfect or complete this Agreement and all transactions incidental to it.

17. GOVERNING LAW AND JURISDICTION This Agreement is governed by the law of New South Wales. The Parties submit to the non‐ exclusive jurisdiction of its courts and courts of appeal from them. The Parties will not object to the exercise of jurisdiction by those courts on any basis.

18. JOINT AND INDIVIDUAL LIABILITY AND BENEFITS Except as otherwise set out in this Agreement, any agreement, covenant, representation or warranty under this Agreement by 2 or more persons binds them jointly and each of them individually, and any benefit in favour of 2 or more persons is for the benefit of them jointly and each of them individually.

19. REPRESENTATIONS AND WARRANTIES The Parties represent and warrant that they have power to enter into this Agreement and comply with their obligations under the Agreement and that entry into this Agreement will not result in the breach of any law.

20. SEVERABILITY If a clause or part of a clause of this Agreement can be read in a way that makes it illegal, unenforceable or invalid, but can also be read in a way that makes it legal, enforceable and valid, it must be read in the latter way. If any clause or party of a clause is illegal, unenforceable or invalid, that clause or part is to be treated as removed from this Agreement but the rest of this Agreement is not affected.

21. MODIFICATION No modification of this Agreement will be of any force or effect unless it is in writing and signed by the Parties to this Agreement.

22. WAIVER

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The fact that a Party fails to do, or delays in doing, something the Party is entitled to do under this agreement, does not amount to a waiver of any obligation of, or breach of obligation by, another Party. A wavier by a Party is only effective if it is in writing. A written waiver by a Party is only effective in relation to the particular obligation or breach in respect of which it is given. It is not to be taken as an implied waiver of any other obligation or breach or as an implied waiver of that obligation or breach in relation to any other occasion.

23. NON FETTER The Developer acknowledges and agrees that:

(a) in addition to its obligations under this Agreement the Council is also responsible for the conduct and administration of local government in the Waverley Local Government Area;

(b) this Agreement in no way affects Council's statutory obligations, functions or powers, including without limitation, its obligations, functions or powers in respect of the Development Application, Development Consent and any other approvals required in respect of the works to be carried out under the Development Consent;

(c) nothing which the Council does or fails to do under this Agreement will limit or otherwise affect the Developer’s obligations under the Development Consent; and

(d) nothing which the Council does, fails to do or purports to do in performing the Council’s statutory functions or powers will constitute or amount to a breach of this Agreement.

24. GOODS & SERVICES TAX REPRESENTATIONS AND WARRANTIES 24.1 The Parties unless otherwise indicated, all amounts payable by one party to the other party in relation to a supply under this Agreement have been calculated exclusive of any GST which may be imposed on the supply.

24.2 If any supply made under this Agreement is, or becomes, subject to GST, the party to whom the supply is made (“Recipient”) must pay to the party making the supply (“Supplier”), as consideration, in addition to any consideration payable or to be provided elsewhere in this Agreement, subject to issuing a Valid Tax Invoice, an additional amount on account of GST, such amount to be calculated by multiplying the consideration by the applicable rate of GST.

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24.3 Any amount in respect of GST payable under clause 24.2 must be paid to the Supplier immediately on receipt of the Valid Tax Invoice.

24.4 If any party is required to reimburse or indemnify the other party for a cost or expense (“Cost”) incurred by the other party, the amount of that Cost for the purpose of this Agreement is the amount of the Cost incurred, less the amount of any credit for, or refund of, GST, which the party incurring the Cost is entitled to claim in respect of the Cost.

24.5 If GST is linked with the abolition or reduction of other taxes and charges, all amounts payable by the Recipient to the Supplier under this Agreement (excluding GST) must be reduced by the same proportion as the actual total costs of the Supplier (excluding GST) are reduced either directly as a result of the abolition or reduction of other taxes and charges payable by the Supplier or indirectly by way of any reduction in prices (excluding GST) charged to the Supplier. Both parties must also comply with Part VB of the Trade Practices Act 1974 (Cth).

25. COSTS The Council’s costs of an incidental to the preparation and execution of this Agreement and any related documents and registration of same must be borne by the Developer.

26. EXECUTION IN DUPLICATE The Parties shall execute this Agreement in duplicate so as to provide one original signed by both parties. This Agreement will be dated on the day of execution by all Parties.

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SCHEDULE

Item Number Particulars/Description

1 Developer NAME (A.C.N. #)

2 Land Street Address (Lot&DP)

3 Development Application DA #

4 Development (description)

5 Development Contribution

6 Public Purpose

7 Development Contribution Date PRIOR TO THE ISSUE OF ANY (Payment date for the CONSTRUCTION CERTIFICATE FOR THE Development Contribution) DEVELOPMENT.

8 Developer Address

Developer Fax Developer Email

Council Address CORNER PAUL STREET AND BONDI ROAD,

BONDI JUNCTION NSW 2022 Council Fax (02) 9387 1820 Council Email [email protected]

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EXECUTED by WAVERLEY COUNCIL with Common Seal of Waverley Council affixed pursuant to a resolution of Waverley Council on

______ATHANASIOS KYRON CLR SALLY BETTS General Manager Mayor

EXECUTED by ) NAME (A.C.N. #) ) in accordance with section 127 of the ) Corporations Act 2001 )

______Director / Secretary Director Name of Director / Secretary: Name of Director:

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APPENDIX 4 Explanatory Note Template

Explanatory Note

(Clause 25E of the Environmental Planning and Assessment Regulation 2000)

[Note: To be completed upon finalisation of Planning Agreement]

Draft Planning Agreement

Under s93F of the Environmental Planning and Assessment Act 1979

1 Parties

Waverley Council

## (Developer)

2 Description of Subject Land

3 Description of Proposed Change to Environmental Planning Instrument/Development Application

4 Summary of Objectives, Nature and Effect of the Draft Planning Agreement

5 Assessment of the Merits of the Draft Planning Agreement

The Planning Purposes Served by the Draft Planning Agreement

How the Draft Planning Agreement Promotes the Objects of the Environmental Planning and Assessment Act 1979

How the Draft Planning Agreement Promotes the Public Interest

(a) How the Draft planning Agreement Promotes the Elements of the Council’s Charter (b) Whether the Draft Planning Agreement Conforms with the Council’s Capital Works Program

The Impact of the Draft Planning Agreement on the Public or Any Section of the Public Other Matters

Signed and Dated by All Parties

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APPENDIX 5 Bondi Beach and Bondi Junction Precinct Area Maps

259 Planning Agreement Policy 2014 Bondi Beach Precinct Area 260 Planning Agreement Policy 2014 Bondi Junction Precinct Area

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APPENDIX 6 Works for Planning Agreements

Possible requirements:

The following is a list of possible requirements that the Council may have for planning agreements. They are not exhaustive and developers are encouraged to discuss these or other requirements that may be included in a planning agreement.

Project Cost Council Requirement Estimate Bondi Junction Public Domain and Transport Infrastructure Improvements $21,000,000 Bondi Beach Public Domain Improvements TBD Contributions to the Waverley Affordable Housing Program On going

Note: 10% of all planning agreement contributions will form a monetary contribution to Waverley’s Affordable Housing Program fund

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APPENDIX 7 Flowchart of Planning Agreement Process for Development Applications

263 FLOWCHART OF PLANNING AGREEMENT PROCESS

No⁺eǗ ḱefeḱ ⁺o ᵹ ann ng Agḱeemen⁺ ᵹo cy 2014 ᵹaḱ⁺ 3 c ause 3.2 foḱ de⁺a s of ⁺he pḱoceduḱe ⁺o be undeḱ⁺aken

PRE-LODGEMENT The applicant decides to prepare a proposed development application or planning proposal seeking a variation of Waverley Local Environmental Plan 2012

Applicant meets with Council officers with preliminary plans and parties decide No agreement to whether to negotiate a PA negotiate a PA

Agreement with Director of Waverley Futures to negotiate a PA

Negotiations relating to draft PA go no further with Council NEGOTIATIONS · Parties decide whether to appoint independent facilitator BETWEEN THE · Parties agree on timetable for negotiations No agreement on APPLICANT AND · Negotiations undertaken terms of a draft PA COUNCIL

Agreement on Terms

APPLICATION LODGED WITH COUNCIL Applicant formally lodges DA and proposed PA with Council Applicant may lodge the proposed PA with Council whether or not there has been any agreement as to the terms of the proposed PA

NOTIFICATION

PA notified in accordance with cl.25D of the Environmental Planning and Assessment Regulation 2000 for a minimum of 28 days

Submissions may result in further amendments and re-notification REPORT TO COUNCIL

The draft PA, any related development assessment report and any submissions received following notification are considered by Council in a formal meeting

Supported No agreement as to terms of a proposed PA

IMPLEMENTATION

Applicant may exercise appeal rights relating to the development Implementation of PA Provisions application. The proposed PA may be offered or abandoned in the course of the appeal proceedings 264

APPENDIX 8 Waverley Council Statement of Business Ethics (as amended from time to time)

265

Statement of Business Ethics

LINKS TO COMMUNITY STRATEGIC PLAN & DELIVERY PROGRAM Direction G1 – Inspiring community leadership is achieved through decision making processes that are open, transparent, corruption resistant and based on sound integrated planning. Strategy G1a – Develop and maintain a framework of plans and policies that ensures open and transparent operations that facilitate equitable benefit sharing and progress towards sustainability.

AUTHOR: Michael Simmons DEPARTMENT: Governance & Integrated Planning DATE CREATED: August 2006 DATE REVISED: April 2014 DATE APPROVED BY EXECUTIVE TEAM:

DATE ADOPTED BY COUNCIL: 6 May 2014

NEXT REVIEW DATE: April 2016

TRIM FILE REF: A06/1397

266

Statement of Business Ethics

How we do business at Waverley

Our community expects high ethical standards in the provision of Council services and in everything else we do. How we manage our relationships is key to maintaining the community’s trust and confidence. Council has set out an ethical framework in which it operates and what we expect from staff. Our Statement of Business Ethics provides clear guidelines on what to expect from Waverley Council, our obligations and expected behaviours. These standards comply with the NSW Government guidelines for procurement and contracting. Our principles and policies are an integral part of good business practice. If at any time you feel that Council is not meeting its standards, please contact my office. I encourage you to become familiar with our policies, and trust that this Statement helps you in your interactions with Council.

Athanasios (Arthur) Kyron General Manager

STATEMENT OF BUSINESS ETHICS 2 267

1. Who does this Business Ethics Statement refer to?

We, us, our Council’s staff, councillors, contractors, subcontractors, consultants, delegates and (to the extent practicable) volunteers, as appropriate to the context

Council’s staff Council’s staff, contractors, subcontractors, consultants, delegates and (to the extent practicable) volunteers

You, your People or organisations that deal or wish to deal with Council in business matters

Code of Council’s Code of Conduct and the Code Conduct of Conduct Procedure for Councillors & General Manager and the Code of Conduct Procedure for Staff, Delegates & Volunteers as it applies to Councillors, council staff, consultants, delegates and volunteers

STATEMENT OF BUSINESS ETHICS 3 268

2. Why comply with a Business Ethics Statement?

When you comply with this Statement, you will find that doing business with Council is easier and more effective. You can be sure that you are not disadvantaged because we require others who deal with us to do the same. By doing business ethically, you will also find it easier to deal with other government bodies because they have similar policies. Ethical practice makes good business sense. On the other hand, corrupt or unethical behaviour can lead to significant legal, financial and reputational consequences for yourself and Council.

3. What are our Values?

Our values are set out in our Delivery Program and Operational Plan and apply to everything we do. We pride ourselves on bringing the following values alive in our daily activities:

Great Leadership Great leadership is having the courage to make difficult decisions when they are for the benefit of the whole community and having the skills to engage our teams in providing quality service.

Great Customer Service Great Customer Service is the willingness and ability to give priority to customers, delivering high quality services which meet their needs.

Respect for All Respect for all is; treating each other and all members of the community in a friendly, fair and equitable way.

Working Ethically Ethical behaviour is acting in ways that are consistent with the expectation of the organisation to be corruption free and transparent.

STATEMENT OF BUSINESS ETHICS 4 269

Working Together Working Together is about everyone working in partnership (internally and with the community) to achieve common or shared goals.

Getting the Job Done Safely, Sustainably and On Time Getting the job done means providing a service efficiently, effectively and in the safest possible manner within agreed timeframes and due regard for the environment.

4. What are our Key Business Principles?

Our Key Business Principles overlap with our Values, and target our relationships with suppliers.

Ethics We have to comply with Council’s Code of Conduct. This means we need to uphold high standards of conduct and ethics in everything we do for Council. We expect the private sector to apply similarly high standards when dealing with Council. We will: . act with integrity; . avoid personal and professional conflicts; . respect and follow the letter and spirit of Council’s policies and procedures; . use public resources effectively and efficiently; . make decisions solely on merit; and . give reasons for decisions (where appropriate).

Value for Money We will always try to obtain the best possible value for money in any business arrangement. This does not simply mean the lowest or highest price. Apart from initial and ongoing costs, we will normally consider other aspects such as your ability to provide suitable goods or services, quality, safety, environmental sustainability, reliability and timely performance.

STATEMENT OF BUSINESS ETHICS 5 270

The lowest or highest bid may be the ‘best value’ if it meets the requirements we believe are needed.

Fairness We will be fair by being objective, reasonable and even- handed. This does not mean that we will always ask for competitive bids or that we will ask for bids from suppliers that have performed poorly in the past. On the other hand, we will rarely deal exclusively with a particular supplier, and then only where we have strong reasons to do so. Sometimes our decision will have a negative effect on a person or organisation, but that does not necessarily mean it is unfair. We will only request business proposals (by tender or any other method) if we intend to award a contract. If we make a change to our request, we will advise all the affected bidders so that they can respond before a decision is made. All of our business dealings are open and transparent, where legally appropriate, including the surrounding process. The exception is where we need to maintain confidentiality or protect privacy.

5. What should you expect from Council?

Council will ensure that all policies, procedures and practices related to approvals, tendering, contracting and the procurement of goods and services are consistent with best practice and the highest standards of ethical conduct. You should expect Council’s staff and councillors to: . act honestly, openly, fairly and ethically in all their dealings with you; . be friendly, courteous, respectful and professional in their dealings with you; . respect confidentiality of commercial information and privacy of individuals; . prevent actual, potential or perceived conflicts of interest; . comply with the law including legislation and regulations; . comply with Council’s policies and procedures including the Code of Conduct and purchasing policies;

STATEMENT OF BUSINESS ETHICS 6 271

. assess all business proposals objectively by considering only relevant factors; . seek value for money; . promote fair and open competition; . protect privilege, confidentiality and privacy; . respond promptly to reasonable requests for information; . never request gifts or other benefits; . decline gifts or other benefits for doing their job unless the gifts or benefits are nominal or token, or otherwise allowed under the Council’s Code of Conduct. Please note that Waverley Council staff who have a financial delegation are prohibited from receiving gifts of any value; and . clear probity standards are established.

6. What does Council expect from you?

We expect you to: . act honestly, openly, fairly and ethically in all your dealings with Council and in all your dealings on behalf of Council; . treat our customers in a friendly, courteous, respectful and professional way in all your dealings on behalf of Council; . ensure that environmental sustainability is a key element of your business practice; . respect confidentiality of commercial and Council information and privacy of individuals; . prevent actual, potential or perceived conflicts of interest and declare these as soon as possible if they occur; . comply with the law including legislation and regulations; . provide working conditions for your employees that comply with industrial relations laws and regulations; . not be involved in the exploitation of child labour; . uphold Equal Employment Opportunity principals; . comply with this Statement and Council’s other policies and procedures including the Code of Conduct, purchasing policies, secondary employment and post-separation employment policies; . provide value for money; . protect privilege, confidentiality and privacy; . respond promptly to reasonable requests for information;

STATEMENT OF BUSINESS ETHICS 7 272

. respect the fact that Council’s staff and councillors must comply with this Statement and Council’s other policies and procedures; . ensure that you do not offer, and refuse requests for, gifts or benefits to Council’s staff or councillors for doing their job, unless you are offering gifts or benefits that are nominal or token or otherwise allowed under the Code of Conduct; . ensure that you do not lobby or seek to influence Council’s staff or councillors while business proposals are being considered; . ensure that you are not involved in collusive practices including attempting to influence or pressure Council’s staff or councillors to perform their public duties improperly; . obtain Council’s consent before discussing Council’s business with the media; . assist Council to prevent unethical practices in our business relationships; . advise the General Manager if you believe any person has breached the law, this Statement or Council’s other policies and procedures. If you are employed/contracted by us, you must ensure that in your dealings with members of the public, you: . comply with the values and meet the standards set out in this Statement and in council's codes and policies; . act reasonably and professionally at all times; . provide information about how they can make a complaint about you or your operations and how their complaint will be dealt with including how we will be advised of the complaint and its resolution.

______7. Why you need to comply

All of Council’s providers of goods and services are required to comply with this statement. The principles of this Statement are consistent with the ethical requirements of other public sector agencies. Therefore you must be careful when you deal with us, because we are public officials. Council will not tolerate corrupt conduct in any form, such as trying to influence the outcome of a tender. Council’s standard tendering invitations, for example, state that any action or contact that may be considered as an attempt to

STATEMENT OF BUSINESS ETHICS 8 273

influence a decision of Council’s staff or councillors will automatically disqualify the relevant tender. People and businesses who engage in corrupt conduct are committing a crime. Penalties for certain acts under the Independent Commission Against Corruption Act 1988 and the Crimes Act 1900 can include imprisonment. Non-compliance with the requirements of this Statement resulting in demonstrated corrupt or unethical conduct could lead to: • Termination of contracts • Loss of future work • Loss of reputation • Investigation for corruption • Matters being referred for criminal investigation • Disqualification of tender

8. Additional information to assist you

Gifts or other benefits Council awards contracts and determines applications based solely on merit. Gifts must NOT be given in connection with any prospective business dealings and Council officials are not permitted to ask for any reward or incentive for doing their job. The acceptance of gifts of a token value by Councillors and staff is permitted in certain circumstances. All gifts accepted and all offers of gifts whether token or not are required to be disclosed and are required to be recorded in Council’s Gift Register. Waverley Council staff that have a financial delegation are prohibited from receiving gifts of any value. References to ‘gifts’ normally include other benefits or cash. Gifts or benefits to Council’s staff and Councillors that have a nominal or token value and do not create a sense of obligation, may be acceptable. Cash is never acceptable. All gifts must be declared and entered in Council’s gift register. Council’s Code of Conduct contains further information.

Communication You must communicate with us clearly and directly at all times, and account for all communications. This will ensure

STATEMENT OF BUSINESS ETHICS 9 274

that there is a minimal risk of appearing to influence Council’s staff or councillors inappropriately.

Confidentiality All Council information is considered confidential and cannot be disclosed unless Council has agreed otherwise in writing, or the information is public knowledge, or the law requires it to be disclosed.

Conflict of Interest Council’s staff and councillors must disclose any actual, potential or perceived conflict between their personal interests and their professional duties. This includes both pecuniary and non-pecuniary interests and is equally important.

Sponsorship From time to time, Council seeks financial or in-kind sponsorship from the private sector to support Council’s activities or events. Council also regularly provides sponsorships or grants to community organisations for their activities or events. Council has a Sponsorships, Grants and Donations Policy that sets out the procedures and considerations that apply in these situations. Sponsorships, grants or donations must not interfere with Council’s ability to carry out its functions, and the process of seeking and providing sponsorships, grants and donations must be open and transparent.

Contractors, Sub-Contractors, Consultants and Delegates You must ensure that any person who is engaged in your work for Council complies with this Statement. This applies to all delegates including your staff, contractors, subcontractors, consultants and any other persons or organisations. We must ensure that any person who acts for Council complies with this Statement. All delegates of Council must also comply with Council’s Code of Conduct for Staff, Delegates and Volunteers.

Secondary and Post-Separation Employment Council’s staff members have a duty to maintain public trust. If a Council staff member works as an employee outside Council, this is called ‘secondary employment’. Running a business or acting as a consultant is also considered ‘secondary employment’, even if the staff member is not strictly an employee in the other business.

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The General Manager can prohibit Council’s staff from secondary employment where there is, or might be, a conflict of interest. Council’s staff must apply for the General Manager’s approval of secondary employment if there is a risk of conflict of interest. Council’s staff must not use their access to commercially sensitive information they gain at Council to assist them into secondary employment or into new employment, business or consultancy after they leave Council. This includes detailed knowledge of Council policies, procedures, practices and information unless these are public knowledge. Council’s staff must also not allow themselves or their work to be influenced by plans for, or offers of, new employment, business or consultancy. Council’s Code of Conduct contains further information.

Intellectual Property You must respect Council’s intellectual property and Council must respect your intellectual property. Access, licence or use must be agreed in writing.

Use of Resources Council’s resources must only be used for official purposes. Council’s Code of Conduct contains further information.

Political Donations The law requires that persons who have a financial interest in, or have made a submission in relation to a Development application or a planning instrument, must disclose certain information about political donations and other gifts. This is a mandatory requirement if a donation or gift has been made to a Councillor or council employee within the previous two years of the application or submission.

Reporting Unethical Behaviour Council is committed to promoting ethical behaviour. Reports of unethical behaviour, fraud, corruption, maladministration or waste can be made to the General Manager or Council’s Public Officer on 02 9369 8000. External reports can be made to the: Independent Commission Against Corruption 02 8281 5999 NSW Ombudsman 02 9286 1000 NSW Department of Local Government 02 4428 4100

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Public officials, including Council’s staff and councillors, who report corrupt conduct, maladministration or serious waste of public funds can be protected by the Protected Disclosures Act 1994. This Act protects public officials disclosing corruption related matters from reprisal or detrimental action and ensures that disclosures are properly investigated and dealt with.

9. Who should you contact?

If you have questions or comments concerning this Statement, or have information on suspected corruption, maladministration or serious waste of funds, please contact the General Manager’s office by letter, phone, fax or email. The details are below. If you would like a copy of Council’s Code of Conduct for Staff, Code of Conduct for Councillors or Sponsorships, Grants and Donations Policy, visit www.waverley.nsw.gov.au or contact our Public Officer.

FOR MORE INFORMATION OR TO TO REPORT CORRUPTION, OBTAIN COUNCIL POLICIES… MALADMINISTRATION OR WASTE…

CONTACT CONTACT The Public Officer, The General Manager, Waverley Council Waverley Council

PHONE 9369 8000 PHONE 9369 8000

FAX 9369 1820 FAX 9369 1820

ONLINE ADDRESS PO BOX 9, www.waverley.nsw.gov.au BONDI JUNCTION NSW 1355

EMAIL EMAIL [email protected] [email protected]

STATEMENT OF BUSINESS ETHICS 12 277 Council Meeting 20 October 2015

Report CM/7.7/15.10

Subject: Bronte House Plan of Management, 470 Bronte Road Bronte Trim File No.: A02/0250-03 Author: John Andrews, Property Consultant Director: Linda Bathur, Acting Director Waverley Life

Recommendation: That Council:

1. Notes the findings from period of Public Exhibition and the amendments made to the draft Bronte House Plan of Management. 2. Adopts the Bronte House Plan of Management 2015. (Attachment 1)

1. Executive Summary

A formal Public Exhibition period for the Bronte House Plan of Management has recently been completed.

During the recent Public Exhibition Period, Council received one submission (Attachment 2).

Council officers have reviewed the submission, investigated the issues raised and have met with the authors of the submission. In response to the issues raised in the submission Officers have subsequently commissioned an independent landscaping specialist to provide a condition report on the garden.

As a result, it is recommended that some amendments be made to the Bronte House Garden and Landscaping Report. The changes include a more comprehensive garden maintenance plan and some minor grammatical changes to plant names. The revised Bronte House Garden Report is included as a part of the attached Plan of Management.

2. Introduction/Background

Introduction A plan of management is a document providing a framework to guide the improvement, maintenance and management of public land. The plan provides strategic directions and key actions to achieve what is envisioned for the land.

Background The purpose of the Bronte House Plan of Management is to manage the property, particularly with regard to the Waverley Council lease arrangements and heritage requirements. The prior Plan of Management was created in 2007. Following the properties refurbishment in 2014, the Plan of Management has been updated. The updated information includes: · Changed conditions for the lease of the property · An updated Conservation Management Plan · A new Bronte House Aboriginal Study

Page278 1 Council Meeting 20 October 2015

· Condition reports on the house and garden

2.1 Relevant Council Resolutions

Council or Committee Minute No. Decision Meeting & Date 21 July 2015 CM/7.4/15.07 • Approves the Draft Plan of Management for Bronte House 2015 for the purposes of public exhibition, including the following appendices. (a) General guidelines for the maintenance of historic houses (b) The Land Deposited Plan 632454 (c) Site maps of Bronte House & grounds (d) Condition & Dilapidation Report, Clive Lucas, Stapleton & Partners (9 March 2015) (e) Aboriginal site survey study, prepared in December 2014 by Dominic Steele Consulting Archaeology (f) Bronte House Conservation Management Plan 2014, prepared by Clive Lucas, Stapleton & Partners (g) Bronte House Garden Report & Landscape Plan 2015, prepared by Place That Plant Ltd · Endorses the public exhibition of the draft plan in accordance with the required statutory period of 28 days, with a report to Council coming back after that date. 4 November 2014 OC/5.2/14/11 • Council endorses the engagement of a consultant to prepare an Aboriginal study for Bronte House and its immediate grounds that could be read in conjunction with the Bronte House Conservation Management Plan. • Contribution from the Aboriginal Torres Strait Islander Community, the La Perouse Local Aboriginal Land Council and Eastern Region Local Government Aboriginal Torres Strait Islander Forum be gathered by the Consultant and included in the Bronte House and Immediate Grounds Aboriginal Study report back to Council.

2 September 2014 OCRD.25/14 • A report be prepared on the cost of preparing an Aboriginal site survey for the grounds of Bronte House and that the report be referred back to Council

3. Discussion

Page279 2 Council Meeting 20 October 2015

The submission received on the Bronte House Plan of Management (Attachment 1) included a number of concerns related to the condition of the garden and how this was portrayed in the Bronte House Garden and Landscaping Report.

The submission stated that the garden was in a state of disrepair that the lease for Bronte House should be a repairing lease, not the more traditional residential type arrangement that Council recently considered and endorsed.

Council’s solicitors have advised that it is at Council’s discretion to determine whether the lease should be residential or repairing.

The submission also stated the draft Plan of Management should be amended:

· to include a condition report on the garden that is not false and misleading · to enable Council to make an informed decision about the terms of management of the garden at Bronte House · to enable Council to make an informed assessment of the terms on which Bronte House may be leased.

The submission was detailed and indicated a passion for Bronte House and its gardens and a concern to ensure the gardens at Bronte House are maintained in peak condition. Council officers have been careful to respect this and have followed up on all points made in the submission.

Council officers have met with the gardener contracted to look after the Bronte House gardens, both onsite and at a further meeting, and have discussed the garden related issues raised in the submission.

Council has also commissioned an independent garden expert to provide comment on the condition of the garden. The reports concludes that the overall condition of the garden is very good while identifying possible areas for improvement in certain sections of the garden. A copy of the full independent report from CAB Consulting Pty Ltd is enclosed as Attachment 3.

Following the meetings with Council’s garden contractor and taking into consideration the independent advice on the garden condition, the Bronte House Garden and Landscaping Report has been updated to include a more detailed maintenance plan. This is attached as part of the Draft Plan of Management for Councils consideration.

Other issues that were noted in the submission such as the fountain leak, the need for tree lopping, erosion of pathways and potential for some irrigation works had already been identified by Council and scheduled to be addressed.

Maintenance of the Fountain is planned in coming weeks and an audit of the irrigation system is also planned. These capital works fall outside of the scope of works of the current garden contractor. However the garden maintenance plan has also been extended to include details of the capital works identified by Council.

The Bronte House Garden and Landscaping Report has been amended to reflect the issues raised in the Exhibition period. The maintenance plan clearly outlines how the garden will be suitably maintained for the period of the Plan of Management. No further changes have been made to the Plan of Management as submitted to Council in July.

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4. Relationship to Waverley Together 3 & Delivery Program 2013-17

The relationship to Waverley Together 3 and Delivery Program 2013-17 is as follows:

Direction: C1: Waverley’s cultural heritage and diversity is recognized, protected and respected. G6: Waverley assets are well maintained for their current purpose and for future generations. Strategy: L4a: Use planning and heritage policies and controls to protect and improve the unique built environment. Deliverable: All properties with heritage significance listed within LEP 5. Financial impact statement/Timeframe/Consultation

Financial impact Once the Plan of Management is adopted the proposed leasing arrangements can be finalised and rental income will be received by Council.

Timeframe It is anticipated that the Plan of Management will be a five to ten year plan, and during this period the plan will be reviewed to reflect any changes. Throughout the life of the Plan any actions that are required can be identified and addressed.

Consultation During the recent Public Exhibition period the draft Plan of Management and supporting documents were advertised and available online and at Councils Customer Service Centre.

6. Conclusion The Bronte House Plan of Management has been developed with careful consideration of the high regard that the Waverley community holds for this beautiful building and its gardens. The outstanding response to the expression of interest process undertaken to identify a new tenant is testament to this.

The Draft Plan of Management has now been amended to reflect the considerations raised in the public exhibition period and Council is asked to adopt the Plan of Management for Bronte House 2015

7. Attachment/s:

Attachment 1. Bronte House Plan of Management Attachment 2. Submission to the Bronte House Plan of Management Attachment 3. CAB Consulting Pty Ltd Garden condition report

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DRAFT

BRONTE HOUSE

Plan of Management

Bronte House Plan of 282Management Program: Waverley Life Date created: August 2007 Date revised: July 2015 Date adopted by Council: 283 3 CONTENTS

Introduction and Purpose 4 The Land 4 Classification 4 Cultural significance 6 Statement of significance 6 Ownership 8 Zoning and heritage 8 History 10 Purchase by Waverley Council 10 Previous Plan of Management 10 Previous lease arrangements 10 Present use and condition 11 Present use 11 Layout and condition 11 Future use and development 12 Management of the land 12 Appendices 15 Appendix A: General guidelines for the maintenance of historic houses. 16 Appendix B: The Land Deposited Plan 632454 17 Appendix C: Site maps of Bronte House and grounds 18 Appendix D: Condition and Dilapidation Report, Clive Lucas, Stapleton & Partners Pty Ltd. 9 March 2015. Attached separately Appendix E: Aboriginal site survey study, prepared in December 2014 by Dominic Steele Consulting Archaeology. Attached separately Appendix F: Bronte House Conservation Management Plan, prepared by Clive Lucas, Stapleton & Partners Pty Ltd. Adopted by Council in 2014. Attached separately Appendix G: Bronte House Garden Report and Landscape Plan, prepared by Place That Plant Pty Ltd 11 October 2015. Attached separately

Bronte House Plan of 284Management 4 INTRODUCTION AND PURPOSE

Bronte House is one of the oldest Australian Heritage Commissions substantial and ontain a wide houses in Sydney’s Eastern Suburbs, Register of the National E tate variety of plants which provide a built between 1843 and 1845. Set 1978, and the State Heritage real showcase at diĀerent times of amid two acres of rolling, park-like Register in 1999. the year. grounds and nestled into Bronte Gully, tenants enjoy a private and The house underwent major The purpose of this Plan of picturesque setting adjoining refurbishment in 2014 and was Management is to guide the beachfront reserve. restored to its full splendour. It management of the property, consists of 3─4 bedrooms, a study, particularly with egard to Waverley Bronte House and grounds was three bathrooms, a lounge, dining Councils’ lease arrangements and sold to Waverley Council in 1948 room, a separate kitchen and open heritage requirements. and the land was listed on the verandas; the gardens are also THE LAND

This Plan of Management applies It is the whole of the land within The Bronte House Garden and to the property known as ‘Bronte Lot 1 of Deposited Plan 632454 Landscape Report (Appendix House’ and located at 470 Bronte (Appendix B). G) forms part of this Plan of Road, Bronte (‘the Land’). Management. CLASSIFICATION

The Land has been classified y the Act concerning the use and Government (General) Regulation Waverley Council (‘Council’), as management of community land 2005 and the guidelines provided community land under the Local apply and this Plan of Management by the Department of Local Government Act, 1993 (‘the Act’). has been prepared in accordance Government. with those sections, the Lo al This means that Sections 35-54 of

Bronte House Plan of Management 285 5

Bronte House Plan of 286Management 6 CULTURAL SIGNIFICANCE

By resolution on 25 July 2000, STATEMENT OF While no Aboriginal archaeological Council declared the Land to be SIGNIFICANCE sites have been identified at Bronte an area of cultural significance. House and garden, or in Bronte The Aboriginal country at Bronte Gully itself, the house was built Council has categorised the had undergone a dynamic in an ‘Aboriginal site favourable’ Land as being an area of cultural environmental history for many tens location on top of an elevated signifi ance under Section 36D of of thousands of years before the topographic position useful for the Act because Council considers land was alienated and built upon views and communication that that the dwelling known as ‘Bronte in the 1840s. In this context, Bronte overlooked a steep sided east- House’, together with the gardens as a ‘place’ has been situated facing sandstone coastal valley that within the curtila e of the dwelling, within many different ‘settings’ in was drained by a freshwater creek. are of historical and cultural the past and Aboriginal people will While organised ‘gully hunting’ of signifi ance to the Waverley area. have routinely used and probably land animals can only be inferred to The Bronte House Conservation helped shape the character of have possibly taken place at Bronte Management Plan was adopted in Bronte through traditional mosaic in the past, there is little doubt September 2014 (Appendix F). burning techniques to increase that the place will have contained animal and plant abundance and numerous rock overhangs for In addition, an Aboriginal tudy long-term sustainability. At times, shelter and for creating painted was prepared in December 2014 the ‘place’ was a sheltered coastal and stencilled before the sides of by Dominic Steele Consulting gully much like today, and at others the gully were developed, extensive Archaeology (Appendix E). it was a small inland valley within sandstone platforms for engraving, a broader coastal hinterland plain and the immediate proximity of This Aboriginal study was endorsed that extended across the now sandy beaches and rocky shores by Council in April 2015. submerged continental shelf and for fishing and shell fish gathering The Land was listed on the was situated many kilometres will have provided a diversity of Australian Heritage Commission’s from the ‘old coast’. Aboriginal predictable resources. A relatively Register of the National E tate in people lived continuously on this sparse white population up to the 1978, was made the subject of a land and successfully adapted 1830s may have allowed Aboriginal Permanent Conservation O der throughout the major climatic people to continue visit and use under the Heritage Act 1977 changes that took place during Bronte and maintain access to both in 1981, and was listed on the the last 30,000 years or more coast and woodland environments State Heritage Register under the and within this scenario Bronte in close proximity and important Heritage Act 1977 in 1999. It was House was built very late in traditional fishing spots and also listed as a local heritage item the sequence of environmental engraving sites in this part of as part of the Waverley LEP 2012, evolution and people’s interaction eastern Sydney after 1788. Bronte Environmental Heritage. with this changing landscape. The House is an outstanding example recognition of this prior ownership of a Picturesque Gothic style The following Statement of and the continuation of this colonial house retaining rare, early Signifi ance taken from the listing unbroken Aboriginal connection to architectural features and is one of the Land by the NSW Heritage culture and country at places like of only a small group of exemplary Offic Bronte are important to Aboriginal Regency style villas constructed in people today. the Australia colonies.

Bronte House Plan of Management 287 Cultural Significance continued... 7

Located in a substantial remnant significant as one of the earliest A historic, extremely rare, of the original inner garden with land purchases and houses to be picturesque garden constructed in a early and original landscape constructed in the Bronte area naturally irregular site as a setting features, Bronte House is sited in and evidence of the former estate for an equally picturesque colonial a picturesque and sympathetic lands remain visible in the broader house by one of the colony’s rarest landscaped setting, which together landscape today. inhabitants - a cultivated lady. with the house is highly valued (James Broadbent for National for its aesthetic significance. The Bronte House is of a style not Trust of Australia, 1981) place is associated with a number commonly found in Australian of people of note including Robert Colonial architecture, with its Bronte House is one of Australia’s Lowe, an influential member of superb siting and substantial most picturesque surviving colonial the Colonial government and his garden it is a significant essay residences and dates back to wife Georgiana, who completed in the picturesque. The property 1845. Built in the ‘Gothic’ taste the house, established the estate has connections with colonial so fashionable in the late 18th & lands and designed and laid out the architect Mortimer Lewis and more early 19th centuries it is a perfect garden. The place is also associated importantly with Robert Lowe, example of the cottage ornee, not with Colonial Architect Mortimer later created Viscount Sherbrooke. a mansion but a romantic retreat Lewis, who is credited with the It is especially notable stylistically from more formal city life. Its initial design of the house and it is as an individual mid-Victorian restored and adapted garden is therefore one of only a small group design reflecting a romantic and now a small scale botanic garden, of houses designed by one of the picturesque interpretation of the a repository for rare and beautiful most accomplished architects in medieval past. It is substantially plants, and one of Australia’s best Australia in the pre 1850s period. intact and retains its outstanding new private gardens. (Schofield, original setting. Bronte House 2002) Located on land that formed part is the oldest known residence of a larger estate that originally in the Waverley Council area. (1836) included the whole of Bronte Sources: Dowd, pp. 154-161. Kerr Park and its immediate surrounds, J, Broadbent J, Gothic Taste in the Bronte House is historically Colony of New South Wales, p. 107.

Bronte House Plan of 288Management 8 OWNERSHIP

Waverley Council is the owner of the Land. ZONING AND HERITAGE

The Waverley Local Environmental Bronte House and its grounds are (unless exempted), Council must Plan 2012 (‘the LEP’) applies to the both state heritage items under consider the e. ect of any proposed Land. The Land is zoned Low Density Schedule 5 of the LEP. development on the heritage Residential Clause 5.10 – Heritage Conservatio signifi ance of the Land. Council may consent to a person – of the LEP applies to the Land. The carrying out development on objecti e of clause 5.10 is to ensure the Land in accordance with heritage items are conserved. the LEP (including the heritage Before granting a y consent to considerations) carry out development on the Land

Bronte House Plan of Management 289 9

Bronte House Plan of 290Management 10 HISTORY

It is understood that the Waverley It began to fall into disrepair, and be paid by the tenant. A minimum area was occupied by the Cadigal by the late 1970s was in poor $200,000 restoration p ogram was people, the traditional Aborigina condition. In 1982 an out building to be undertaken, a considerable owners of the land. for garaging and storage was expenditure at the tim . The house Originally commenced by architect constructed near the entrance gates was to be open to the public a Mortim r Lewis in c.1843 and at the western end of the site. minimum of six tim s per annum. completed by Georgiana and Robert PREVIOUS PLAN OF The lease was assigned to a small Lowe (later Viscount Sherbrooke), number of tenants in its history with ‘Bronte House’ was built as a single MANAGEMENT Council’s consent. Leo Schofi ld, residence and has been used Until the ado tion of this Plan o who occupied the Land from 1994 for that purpose for most of its Management, the Land was subject until 2004 notably undertook existence. to the Plan of Management adopted extensive restoration of th by Council in 2007. PURCHASE BY WAVERLEY residence and, most signifi antly, completely overhauled the gardens COUNCIL PREVIOUS LEASE ARRANGEMENTS to an outstanding condition In 1948, Council acquired the Bronte House was substantiall In order to retain the Land in Land to retain a signifi ant local refurbished in 2014. heritage building. Council owned appropriate condition and i The Plan of Management authorises and operated it in various uses public ownership with public Council to request the exemptio for some years. It suĀered access, Council in 1983 entered of the Land or of any lease, licence from unsympathetic chan es to into a 25 year repairing lease of or other occupation of the Lan the residence and inadequate the Land, including the residence from the Residential enancies Act maintenance. and gardens, expiring in January 2008. In summary, rent was set 2010 (or any other legislation th t The cost of maintaining this heritage at one dollar per annum, with all a. ects the leasing, licensing or other property became prohibiti e and rates, taxes and maintenance to occupation of th Land) from tim beyond Council’s financial esources. to time

Bronte House Plan of Management 291 11 PRESENT USE AND CONDITION

PRESENT USE leases, sub leases, or licences or LAYOUT AND CONDITION Following the refurbishment in sub-licences or for community use As at the date of adoption of thi 2014, Bronte House has been (including open days, function plan, the layout and condition of th kept, and continu s to be kept, and other activities). This is o residence and gardens is described in good condition. The p esent remain the case until a y future in Appendix D and Appendix G. use of the land is for the entering amendment to the Plan of into residential enancies, other Management.

Bronte House Plan of 292Management 12 FUTURE USE AND DEVELOPMENT

The LEP acknowledges a number of sub leases, residential enancies, the Land. Such development may possible uses. licences or sub- licences include alterations refurbishments The Land may be used: Under regulation 16 of th or renovations n eded or required to enable the Land to be used for 1. as a private residence; and Residential enancies Regulatio 2010, Bronte House is exempt from the purposes set out in Part 8 of this 2. subject to the provisions of any the operation of the esidentia Plan of Management. agreement allowing for the Tenancies Act 2010. As at the date of this Plan of occupation of the Land or when Leases, licences and other estates Management, and subject to being the Land is vacant, by Council in community land are permiĀed finalis d and executed, Council has for its own use or for community under section 47 ( erms over fi e proposed a lease of the Land. use (including open days, years) or section 47A ( erms of fi e functions or other activities), years or less) of the Act. by community organisations if so Council will only permit further permiĀed by Council from time development that conserves and to time is sympathetic o the nature and To facilitate this use, Council scale of the existing esidence and authorises the entering into grounds, and is consistent with the agreements allowing for the Land’s heritage status and having occupation of th Land, leases, regard to the cultural signifi ance of

MANAGEMENT OF THE LAND

Section 36H (1) of the Act tates: Aboriginal, aesthetic archaeological, and to promote the acti e use The core objecti es for management historical, technical or research or of conservation m thods, the of community land categorised as social signifi ance) for past, present Land is managed according to the an area of cultural signifi ance are or future generations y the acti e objecti es, performance targets and to retain and enhance the cultural use of conservation m thods. other ma ers set out in the table on signifi ance of the area (namely its To implement the core objecti es, the following page:

Bronte House Plan of Management 293 13

Objectives and Means to Achieve Objectives Manner of Assessing Performance Targets and Performance Targets Ensure the continuous p otecti e care Establish maintenance and formal Effici t maintenance and inspection and maintenance of the residence and inspection p ograms generally in programs is adopted, and the residence grounds accordance with the guidelines in and grounds are adequately and Appendix A. regularly maintained.

Ensure e ecti e communication Establish and conduct a Bronte House Occupier and Council are able to deal between Council and the occupier of Management Group as a contact forum e ecti ely and cooperati ely with the the Land for Council and the occupier. day to day management of the Land. Provide public access Arrange, and ensure that any agreement Public particip tes in open days. concerning the use of the Land as a private residence allows, open days to allow public access. Conserve Heritage Items Require all works that may alter the All works undertaken are carried exterior or interior of the residence or out with specific app ovals, and in grounds to be the subject of specific accordance with agreed conservation approvals by Council. Establish with and maintenance requirements. the occupier an agreed list of standard exemptions or maintenance and standard repair works. Maintain and improve appearance Conserve the exterior of Bronte House All works undertaken serve to maintain and performance consistent with while accepting some chan e in areas or improve the Land. existing cha acter where change has occurred since c.1880. Maintain and improve garden Upgrade soil quality, improve nutrient Effici t garden maintenance and presentation onsistent with existing supply to key plants and mulch ground, upgrading program is adopted, plants character and implement disease control. are kept in good health and plant diseases are well controlled. Plant grounds in consultation with Council. Grounds planted are consistent with the Landscape Plan and/or approval of Control tree growth and remove Council. invasive species in accordance with the Tree Preservation O der. Tree growth and invasive species are controlled consistent with Council Document and apply management policies. policies to key trees and shrubs, including appropriate pruning and Management and maintenance of key (where old age dictates) replacement. plantings is under aken in accordance with documented policies. Maintain planting and encing to Bronte Road and Bronte Park to ensure an Hedging and screening is maintained in att acti e boundary a form and style approved by Council.

The Land is managed in a way that is consistent with the Heritage Act 1977, the Heritage Regulation 2005 and th Local Government Heritage Guidelines.

Bronte House Plan of 294Management 14

Bronte House Plan of Management 295 15 APPENDIX

The following documents record Appendix B: The Land Deposited Appendix E: An Aboriginal characteristics and i formatio Plan 632454 site survey study, prepared in relating o the condition of th December 2014 by Dominic Steele premises as at the date of this Plan Consulting Archaeology Appendix C: of Management. Attached separately Site maps of Bronte House and grounds Appendix A: General guidelines for Appendix F: Bronte House the maintenance of historic houses Conservation management Plan, Appendix D: Condition and This Plan of Management prepared by Clive Lucas, Stapleton Dilapidation Report, Clive Lucas, acknowledges that Part 4 – Heritage & Partners Pty Ltd and adopted by Stapleton & Partners Pty Ltd 9 provisions (Clauses 45–50) in the Council in 2014 March 2015 Waverley Local Environmental Attached separately Plan, 1996 contains restrictions o The dilapidation and ondition development applications includin report documents the existing public notiĀ ation of p oposals, and conditions of the xterior and Appendix G: Bronte House Garden so this Plan of Management does interior of Bronte House following Report and Landscape Plan, Place not impose additional estriction recent conservation orks. That Plant Pty Ltd 10 March 2015 on the future use of the Land. Attached separately Attached separately

Bronte House Plan of 296Management 16 APPENDIX A: GENERAL GUIDELINES FOR THE MAINTENANCE OF HISTORIC HOUSES

The following is a guide only, for EVERY YEAR • Examinatio of plumbing systems specific maintenance and a full and equipment understanding of the premises • Thorough cleaning out of guĀers reference to the Conservation and stormwater system • Repair of any damaged joinery Management Plan should be made. • Checking of roof slating a d • Review of internal finishe with Good maintenance is the best minor repairs view to scheduling repainting method of preserving and and redecoratio • Termite inspectio protecting hi toric buildings. EVERY FIFTEEN YEARS This requires some work and EVERY FOUR YEARS expenditure each year, based on • Review of kitchen and an annual review as part of the • Reapplication of Ā ted limewash bathrooms overall strategy. Such a review is to exposed portions of xterior best undertaken by an architect walls. It is noted that protected EVERY THIRTY YEARS well versed in heritage buildings: a areas may only require concise schedule of work should be reapplication of lim wash every • Extensive reworking of kitchen the result of such a review giving 10 years. It is also noted that and bathrooms priorities or the immediate year, ti ted limewash can enjoy a • Major review of general and into the future. somewhat longer life by the condition of buildings and introduction of a binding a ent. For a property such as Bronte In making this remark, the above landscaping House, a responsible cycle would time f ame is still ecommended. be: EVERY SIX YEARS MONTHLY • Preparation and repairing of all • General garden maintenance and external joinery general housekeeping EVERY TEN YEARS BI-ANNUAL • Structural review • Thorough inspection of g ounds and internal and external areas • Examinatio of all electrical of the house. wiring and equipment

Bronte House Plan of Management 297 17 APPENDIX B: THE LAND DEPOSITED PLAN 632454

Bronte House Plan of 298Management 18 APPENDIX C: SITE MAPS OF BRONTE HOUSE AND GROUNDS

FLOOR PLAN

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GARDEN

 Bronte House Plan of Management  299

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Bronte House Plan of 300Management 20

Bronte House Plan of Management 301

2015

Bronte House Garden ReportBronte House Garden and Landscaping Report

Author - Carla Pettit of Place that Plant Pty Ltd with the assistance of Catherine Seaglove and Waverley Council officers.

Updated - 11 October 2015

C. PETTITT Place That Plant Pty Ltd 3/10/2015

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Bronte House- Brief History.

Built in 1845, historic Bronte House is among the oldest buildings in the eastern suburbs of Sydney. Bronte House was sited in a gully facing the Pacific Ocean.

The house was commenced by Mortimer Lewis, the then Colonial Architect, and almost certainly designed by him, although his design was probably amended to accord with the tastes of Robert and Georgiana Lowe who acquired the foundations of the building and the surrounding land from him in 1843.

Bronte House is example of a cottage orneé; in the 'Gothic' taste, a decorative style much favoured in the last quarter of the 18th and the first half of the 19th centuries.

Robert Lowe, an Oxford graduate and a member of the English Bar, arrived in Sydney from England on the ship 'Aden' in 1842 with his wife Georgiana. Lowe, who had a promising career in England, had come to Australia for his health. The choice of a seaside residence was a curious one, as he was an albino. His skin and hair were both white and he wore a pair of curious-looking goggles to protect his eyes against glare. This is possibly why the bay window in the dining room at Bronte House is fitted with unique sets of adjustable upper and lower shutters to control direct light, but you will see that nearly all the windows had shutters to adjust the light into the house.

Mrs. Lowe was much taken with her seaside cottage where she and her husband entertained the intellectual elite of the colony. An accomplished artist and horsewoman, Georgiana was a keen horticulturist and took particular interest in the garden at Bronte House, which is mentioned in several of her letters home. She established a thriving vegetable garden on land above the house and was often to be seen taking her produce to Sydney for sale. In almost all of her surviving correspondence with relatives in England, she describes the pleasure she took in making her garden.

The State Library of New South Wales has Georgiana Lowe’s sketchbook containing some 26 highly accomplished watercolour drawings including a number of the house and its surroundings. One of these provides clear evidence that the specimen of giant bamboo, Bambusa balcooa, in front of the house dates from her time and may well have been planted by her. Two magnificent pines on the northern side of the property, an Araucaria columnaris and Araucaria heterophylla, were also probably planted in the garden’s earliest days and a Norfolk Island pine originally grew in the centre of the circular lawn. The current fine specimen is a replacement. Georgiana also made the path cutting through the trees; she dubbed the ‘Lovers Walk’. She also developed a rockery from stone collected by the ocean.

In 1849, the Lowes returned to England. Neither he nor his wife ever returned to Australia, although both spoke warmly of their years at Nelson Bay (Bronte). The suburb of Bronte was founded in early 1900’s and was once Nelson Bay 57 acres with its own private beach. It currently has only 2 acres belonging to it. The suburb took on its name from the House, and the beach known as Nelson Bay was renamed to Bronte Beach.

After the Lowes

In 1861, the entire estate of 57 acres was once again put up for auction in 15 lots, Lot 1 being the house and 'upwards of 17 acres.' The buyer was J.B.Holdsworth, a hardware and ironmonger magnate, who paid 4750 pounds for it. Sub-division meant the extension of the original road (which terminated in the circular drive of the house) down to the beach. Before he died, Holdsworth added the second storey to the wing abutting what became Bronte Road.

It was eventually sold it to Waverley Council who acquired it as part of an exercise to consolidate the valley leading to Bronte Beach as public parkland. Waverley Council decided to follow an English tradition of leasing houses of historic importance to private households, where the tenant can live on the site for a small fee as long as the property is maintained and improved.

By 1980 the house, then in use as a venue for weddings and parties, had fallen into disrepair and had suffered a number of insensitive alterations. Although its exterior form remained largely unchanged since the Holdsworth occupancy, the interior had been altered beyond recognition.

Bronte House today looks much as it must have in 1845 when Robert and Georgiana Lowe moved in. Following extensive restoration work on the house itself, the garden at Bronte House was completely overhauled. A plan for re-planting was devised in the early 1980s by Australia’s most respected authority on historic houses and gardens, Dr. James Broadbent. Some elements of his plan were implemented but in an attempt to achieve instant privacy, lessees removed historically appropriate trees and replaced them with others far less suitable but faster growing. This process has been reversed.

Combined with poor maintenance, the garden was seriously neglected, wildly overgrown and almost completely shaded so that any new growth was dramatically restricted. Weed infestation of the site was extensive and the historic rock garden on the ocean front of the property was almost completely buried under a mountain of invasive plants. The original late Victorian mounded rockery, complete with weathered rocks and coral gathered from the nearby shore, was uncovered and the lower part of the garden has now largely been cleared, restored and re-planted.

Also uncovered was a circular fountain of 1886, which had been filled with earth and planted with ailing Arum Lilies. It too has been restored.

A stand of poorly grown Ficus hillii along the southern boundary to Bronte Road was removed and replaced, in accordance with the original Broadbent plan, with eighteen advanced Acmena smithii, the native Lilly Pilly.

303 Many of the plants used in the current scheme have been selected for their suitability to coastal conditions, indifference to sandy soil and resistance to salt winds. The final form of the garden will evolve over coming years and many refinements remain to be made, but dramatic changes are unlikely to the rockery or to the northern gully where the bank has been planted with three and a half thousand Clivia species shaded by a median canopy of Cyathea cooperi, Phoenix canariensis and sixteen notable specimens of the dwarf date palm, Phoenix roebelinii.

Several tenants took up the challenge of restoring Bronte House but only one made it a goal to create a garden.

Leo Schofield took over the Lease of Bronte House in 1994. He successfully decorated the rooms to the Victorian Gothic Era of the house architecture. Leo had a massive passion for the garden. He was a garden enthusiast and had previous garden challenges which showed he had a lust for horticultural treasures. He was so inspired by Bronte House and its transformation, that he wrote a book ‘A Garden at Bronte’, to show and share the beautiful garden and house.

Leo Schofield left Bronte House in 2004, while Matt and Clare Handbury took over with tenanting the house and looked after the general maintenance of the house and the garden till early 2014, when the council decided to do a major restoration of the entire house.

The garden at Bronte House is now widely regarded by professionals, connoisseurs and members of the public as one of the finest in Sydney.

Bronte House (Photo 1) Formatted: Left

Formatted: Font: Verdana, 14 pt, English (Australia), Check The Garden spelling and grammar

304 Formatted: Centered

Carriageway Border

The first part of the garden when entering the property from Bronte Road is an extensive border surrounding a circular lawn with a Norfolk Island pine (Photo 2) in the middle. When the house was built, this was the carriage drive.

This part of the garden is the west area of the house; it has a gravel driveway and is adjacent to the garage (see photo 11). The garage has a climber called Beaumontia grandiflora which is trained up a wire near the doorway to the garage.

The garden is based on a Colonial Victorian Perennial Garden, displaying a colour scheme of purple, burgundy, blue, orange and the odd pink, either through the display of flower or foliage.

The garden relies on the repetition of plants like the Phormium tenax ‘Purpurea’ (see photo 5), Melianthus major (see photo 6), Dahlia excelsa Tree Dahlias, Hedychium coccineum Gingers (see photo 3), Salvia leucantha (see photo 3) and clumps of Crium pedunculatum Swamp Criums (see photo 7), repeating across the garden bed. Accent and rare plants like Brugmansias, Roses (see photo 9) and Canna Species are also spread through the garden.

At the entry of a path or door there is topiaries of Buxus sempervirens (Box Hedge) or Alternanthera dentata shaped into balls (see photo 4). The main entry to the house displays Alternanthera dentata shaped, as well as Rosa ‘Pierre De Ronsard’ climbing rose (photo 13).

In the Carriageway, there are uncommon plants like Wigandia caracasana (see photo 8) and Antigonon leptopus (see photo 10), which hide amongst the repetition of the garden and compliment the style. The Antigonon sp grows over a woven wire arbour, which marks the paths entering the Carriageway Border and are also covered in a mixture of David Austin Roses and Lonicera sp, the arbour near the garage contains Rosa ‘Cresescule’ (see photo 20).

Along the fence line, the rhythm continues with similar plants (see photo 17 and 18) but also growing along the fence is Trachelospermum jasminoides and four David Austin Rosa ‘Abraham Darby’ (see photo 12). The fence line is highlighted by three magnificent Magnolia ‘Exmouth’ (see photo 15). These trees frame the garden not only inside but outside of the garden, creating a lot of interest to the public; they are shaped annually into cones with a team of arborists. The treatment of these plants is inspired by the gardens at ‘La Foce’ and “Ville d Est’.

To the side of the house is a triangle bed which contains a mixture of Canna species, Salvia leucantha, Hedychium coccineum, Tulbaghia Violacae ‘Society Garlic’, Agapanthus ‘Blue’, Salvia ‘Black Knight’, and a Standard Brugmansia ‘Apricot’. This garden frames the house and captures the style very well (see photo 14).

The lawn area near the kitchen contains 3 clipped Citrus- Mandarin, Lemon and Lime (see photo 19). Below the citrus is a border of Alternanthera dentata. All the lawn areas in the Carriageway are Queensland Blue Couch.

On the turret of the building, in this area, is Lonicera hildebrandiana climber trailing along the top of the building forming a skirt across a stainless steel cable, to the public pathway. It is one of many plants in the garden that is admired from people all around the world.

305 Two key Trees that can be seen from the Carriageway are Araucaria heterophylla and New Caledonia Pine Araucaria columnaris. These trees are thought to be planted by Georgiana Lowe and are great specimens that are displayed at Bronte House (see photo 16).

The Carriageway is one of the key areas of the garden and highlights Bronte House with the use of colour, texture and style of the Victorian era, the plants represent this style very well.

In early Spring, the Carriageway puts on a big display of red and purple poppy varieties like Papaver paeoniflorum and Papaver rhoeas that are dotted throughout the garden (see photo 21), when the poppies finish flowering and go to seed, the seed is collected and scattered through the carriageway for the following year.

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Yellow and White Perennial Border

316 Located on the Northern side of the house, the Yellow and White Border was designed mainly to put any yellow or white flowers or foliage to one area of the garden, as it would not have suited the garden around the carriageway, due to the colour scheme. The plants in the Yellow and White Border handle the position well and grow beautifully in the location (photo 22 and photo 30)

The garden has two arbours which mark the entry to this part of the garden. The arbour closest to the Carriageway Border has a mixture of climbing Roses. The arbour to the ocean side contains a Rose species, Trachelospermum sp ‘Variegated’ and a Stephanotis floribunda(see photo 39) Another climber is Thunbergia mysorensis (see photo 36) which grows along the wall of the house, with its spectacular long racemes bearing saffron, yellow and Indian red cupped flowers.

Strelitzia nicolaii (see photo 23)is a main feature near the bay window of the house, and is supported by rare yellow Salvia madredsis ‘Yellow Majesty’(see photo 24), Brugmansia aurea and variegated varieties of Iris germanica (see photo 38). Yellow Dahlia species (see photo 34) are placed throughout this part of the garden and Yellow/Orange Hemerocallis species (see photo 28).

The garden is very fragrant and contains Hedychium gardnerianum and Hedychium coronarium near the carriageway border and a very white Frangipani Plumeria sp near the bay window, with an Epiphyllum hylocereus trailing up its trunk (see photo 29).

There are two metal support stands for Wisteria alba on either side near the arbour (see photo 37) which enters the Yellow and White Border. Two Metal Obelisks in the main garden bed which supports another two Wisteria floribunda (see photo 25). Beside these stands in the gaps between, there is Montanoa bipinnatifida and Roldana petasitis syn. Scenecio (see photo 31)

Other plants that compliment this area of the garden are: Crium pedunculatum(see photo 35), Melianthus major, Rudbeckia californica, Phormium ‘Yellow Wave’, Miscanthus sp ‘Variegated’, Spiraea cantoniensis, Nerium oleander ‘White’, Alstroemeria cvs, Liriope muscari ‘White’, Euphoria ‘White Diamond’, Zantedeschia aethiopica, Pleioblastus spp.Arundinaria, Acanthus mollis, Helichrysum petiolare, Phlomis fruticosa, Plumeria ‘White’, Cleome hassleriana cvs ‘Alba’(see photo 27), Hibiscus tiliaceus (see photo 32 and 33), Anthriscus sylvestris ‘Queen Anne’s Lace(see photo 26), etc.

In this part of the garden, there is a lot of different plants that are rare and usual and very hard to source.

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Eastern Terrace

The Eastern Terrace is the front of the house which faces the sea (see photo 40). From the veranda, there is a view that has been created to take in the glimpse of the ocean and lower park area (see photo 41).

The lawn is two levels of Queensland Blue Couch. Towards the northern end on the upper level, there is a variegated Brugmansia and a few Clivia miniata, and variegated ginger (see photo 42).

A small flight of sandstone steps flanked by two pedestals with marble urns, inside them is Agave victoriae-reginae (see photo 46). The garden is built on top of a steep hill which is enclosed by a bamboo fence in the Victorian style and has a long narrow bed mix with Agapanthus ‘Blue’ and Hippeastrum ‘Papilio’ (see photo 44 and 45)under planted with a small amount of orange Cosmos sulphureus 'Bronte House', along the fence grows Wisteria floribunda.

Towards the southern end of the lawn area (see photo 43), the garden bed is planted with a large variety of colourful flowering plants and ornamental grasses. Echium candicans, Ricinus communis castor oil plant, Lantana cantana and Alstroemeria sp, Calamagrostis flexuosa, Doryanthes excelsa, Nerium oleander ‘White’, Buxus japonica,Salvia ‘Indigo Spires’ and a large Magnolia grandiflora in the centre of the garden bed.

At the back of the bed, there is a path which is planted with numerous superb varieties of Canna x generalis to make a ‘Canna Walk’.

On the house grows Tecomanthe hillii Fraser Island Creeper (see photo 47), along a downpipe attached to the house, this plant is very rare and unusual and does not flower very often.

When you follow the path to the right from the veranda, there is Salvia ‘Indigo Spires’ and a large Acmena smithii hedge along the boundary fence line. Near the entry to the rest room is an old Rosa species (see photo 48).

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331 Succulent Garden

The Succulent Garden starts from the end of the Canna Walk and Pond area. This part of the garden is inspired by the famous Jardin Exotique from Monaco (see photo 49). It’s on a steep site, makes much use of rocks and is largely created with succulent plants. The design of the Succulent Garden is to highlight the large specimen succulent with mass ground cover. The area is drought tolerant, and the soil is sand and stone.

Euphorbia trigona, Euphorbia ingens, Dracaena draco (see photo 55) ,Crassula ovata (see photo 50),Furcrea selloa (see photo 53), Yucca species, Agave attenuata, Agave Americana (see photo 51), Aloe jacksonii, Aloe saponaria, Aloe plicatilis, Aloe arborescens, Aloe striata, Dracaena tricolour, Pachypodium lameri (see photo 54), Senencio serpens (see photo 52), Kalanchoe species, and Phormium species are to be seen here with the giant bamboo (see photo 56) planted by Georgiana Lowe towering overhead and providing a stunning background. The clump of the Bambusa balchoa is over 6 metres wide and over 35 metres tall.

Steps carved from live rock wind through this area provide fascinating and interesting aspects of the garden. The path takes you down to the circular area of Cycad revoluta, near the rockery garden (see photo 57) which Georgiana is thought to have built and is considered a heritage feature. On the lower platform, you are met with the mature Draecana draco.

The garden then continues up a few sandstone steps up to where there is a large specimen of Ficus rubiginosa (see photo 58) with a Dendrobium speciosum var. hillii hanging in a nook of the tree.

The under storey of this spectacular tree is covered with Plectranthus purpuratus and Asplenium australiasicum(see photo 59). The small area is mass planted with these beautiful plants until it reaches a mass of different types of Bromeliads, including the large Bromeliad Alcanthera imperalis (see photo 60).

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338 Pond, Frangipani Garden and Compost Area

The location of the pond is in the south east corner of the property.

The pond holds a mixture of aquatic plants and water lilies. The pond has 20 pots of Agave attenuata circling (see photo 61) around the pathway, as well as Aloe saponaria that are ground covered near the entry to the area (see photo 62). The back drop of the pond area has plants like Hedychium greenii, Hedychium coronarium, Iresine herbstii, Alocasia species, Musa species and a beautiful climber over the arbour which is Quisqualis indica.

The Frangipani area is full of different coloured Plumeria species (see photo 64)that have been collected all over Sydney and Australia (see photo 63). Groundcover in this area is Callissia fragrans and Tradescantia zebrina. Along the wall is the Aristolochia gigantean Giant Dutchman’s Pipe.

The garden is built from building waste and compost supplied by the compost bins. The compost bins are well used and rotated regularly, and help build up level and give nutrients to certain areas of the garden at Bronte House (see photo 65).

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342 Lovers Walk

The Lover’s Walk Garden is in the lower paths of Bronte House Garden (see photo 66). This name appears in the brochure advertising the 1882 sub-division of the property and is described as "a romantic and shaded walk parallel with the ravine running towards the sea".

The area has many of Bronte House’s tree collection including Araucaria heterophylla and Araucaria columnaris (which you can see from the Carriageway), Phoenix canariensis, Wollemi Pine (see photo 69), Large Camellia japonicas, Cyanthea australis, Phoenix roebelinii, Podocarpus elatus and Araucaria bidwillii.

There are a number of rain-forest trees and plants are to be found here along with shady ferns and palms. The ground underneath has been planted with more than 3000 orange clivias (see photo 72)and with some rarer specimens as well, including the prized yellow Clivia miniata ‘Lutea’ and Clivia miniata ‘Belgium Hybrid’(see photo 71). This part of the garden is spectacular in August and September.

There are beautiful Cordyline australis, Aspidistra species, Alpinia zerumbet, Ctenanthera species(see photo 68), Costus barbatus(see photo 67), Dracaena species, Tree Begonia, Syngonium ‘Green Butterfly’(see photo 70), Brugmansia species and Mondo grass.

At the end of Lover’s Walk it contains a collection of ornamental bananas and a large clump of Rhapis excelsor and more Mondo grass.

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346 Vegetable Garden and Nursery

The Vegetable Garden is located opposite the Gardener’s shed and garage. It has seasonal vegetables growing in the garden bed and a few herbs. The backdrop of the garden bed is a Mackaya bella.

Opposite the Vegetable garden is the nursery which is located next door to the Gardener’s Shed. This is where a few plants are propagated and also where sick plants go to recover (see photo 73).

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347 Bronte House Garden and Landscaping Maintenance Plan

It is Waverley Council’s intention that the garden is maintained in good condition at all times for the benefit of the community. The community will have regular access to the garden with the garden being open on a minimum of six occasions each year.

Place that Plant is the current gardening contractor engaged by Waverley Council to maintain the Bronte House Garden. This arrangement is confirmed until June 30 2016 when the arrangement will be routinely reviewed. Place that Plant will be engaged to carry out mainly horticultural services at the garden. The service will be supported where necessary by Council specialised services and staff. In addition the appointed tenants of the house will provide additional support of basic maintenance tasks.

Monthly meetings will continue to be held between Council and the gardening contractor to discuss the condition of the garden and to prioritise works. In addition regular meetings will be held with the Bronte House tenants to allow them to input into the future development of the garden.

The ongoing maintenance of landscaping elements, such as the pathways, sandstone steps, and fountain will be performed by Council appointed contractors. Some deterioration has been identified in these areas and maintenance works are being programmed to address these issues.

Waverley Council will continue to seek independent expert advice on the condition of the garden and landscaping to inform priorities and to ensure that the garden is presented at its best at all times.

The table below indicates how the gardening and landscape maintenance tasks will be shared for the period of the Plan of Management. The plan maybe amended from time to time to ensure the best operational and community outcomes.

Maintenance Tasks Performed by Frequency

Weeding, pruning, fertilising, watering, pest and disease control, lifting/dividing and

relocation, composting, new planting and Weekly Gardening contractor garden development through planting strategy.

Lawn maintenance with hand mower, raking As required mowing more frequent Bronte House tenant in conjunction with of driveways and some watering. in warmer months. Raking ongoing. gardening contractor

As required as directed by Tree pruning (general) gardening contractor – Prune Council staff / independent contractor planned for November

Quarterly to keep under control or Giant Bamboo pruning Council staff as directed by gardening contractor

Gardening Contractor supported by Winter prune Annually (June/July) Council staff

Gardening Contractor supported by Mulching with cow manure and compost Annually Council staff

As required – Erosion of pathways Council staff or Council appointed Pathway and edging maintenance has been identified and quotes for contractor addressing issue are being sought.

As required – some steps have Sandstone steps maintenance deteriorated and need to be taken Council appointed contractor up, repacked and steps re-laid.

As required – Audit of system Irrigation system maintenance Council appointed contractor planned for November 2015

Maintenance of other landscaping elements As required – Fountain leak –retaining walls, fountain and pond, identified, to be repaired October Council appointed contractor property fencing. 2015

348 Bibliography

 The Garden at Bronte by Leo Schofield 2002  Bronte House Plan of Management by Waverly Council; Author Charles Weber Nov 2007  Bronte House Landscape Plan 2007 by Myles Baldwin

The photos taken have been done from January 2015-March 2015 showing the garden at its current state. All the photos in this report were taken by Carla Pettitt and Catherine Seaglove, they may not be reproduced without permission.

Garden Maintenance Program

Winter Cut Back

Winter Cut Back is one of the major jobs that are carried out around June/July, this is a seasonal project that only happens once a year when all the perennials are cut down to the ground and topped up with organic mixture of Cow and Compost. This is done to encourage maximum growth, health and vigour of all the perennials at Bronte House. The timing of this pruning is critical to set the stage for the coming seasons flowering in preparation for the open days at Bronte.

The process is carried out over a week and focuses mainly on the upper garden beds. There is usually so much green waste that an industrial bin is ordered to remove the majority of it. (see photos 74, 75, 76)

Tree work

Removal of old palm fronds and strelitzia fronds that drop on the ground or hanging off dead, they are usually taken to the tip as it takes a long time for the palm frond to break down in the compost area. Controlling the Giant Bamboo, by cutting any sucker growth and reporting any major work to council for arborist work.

Open days

Opening the garden to the public makes it possible for people to view the garden and appreciate the history and heritage of such an amazing garden of its era.

Maintenance

Good and regular maintenance is the best method of preserving and protecting certain parts of this historic garden.

The horticulturist is required to keep tenants or the council up to date on any circumstances that may affect the garden and the maintenance.

There is irrigation that is run at Bronte House and is required regular upgrading to make sure the system works well. It needs reviewing and looked at every 5 years, due to plants growing and roots may interfere with pipes and general wear and tear on the system.

The Succulent Garden and the Rockery need upgrading due to environmental changes.

The Garden Design

The design of the garden has evolved through a process of trial and error. It has had input from horticultural and design professionals including: Clive Lucas, James Broadbent, Leo Schofield, Michael McCoy, Brendan Lewis, Myles Baldwin, Chris Owen and Carla Pettitt.

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351 Map

352 Bibliography

The Garden at Bronte by Leo Schofield 2002

Bronte House Plan of Management by Waverly Council; Author Charles Weber Nov 2007

Bronte House Landscape Plan 2007 by Myles Baldwin

The photos taken have been done from January 2015-March 2015 showing the garden at its current state, except Winter Pruning Photos were taken June 2014.

All the photos in this report were taken by Carla Pettitt and Catherine Seaglove, they may not be reproduced without permission.

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