2015-2016

Cowra Shire Council Annual Report

Cowra Shire Council A 116 Kendal Street COWRA NSW 2794 P 0263402000 F 0263402011 E [email protected] I www.cowracouncil.com.au

Adopted Monday 28 November 2016 2 2015-2016 Annual Report Cowra Shire Council

Contents Cowra: Your Shire ...... 4 The Region ...... 4 The Cowra Shire ...... 4 Cowra Regional Overview ...... 4 Cowra: Your Council ...... 5 Council’s Direction ...... 5 Organisation Structure ...... 6 Contacting Your Council ...... 7 Cowra: Your Representatives ...... 8 About the Councillors ...... 9 A Word from the Mayor & General Manager ...... 10 Cowra “Fit” for a very bright future! ...... 10 Principal Activities ...... 11 Overview ...... 11 Executive Summary ...... 11 Community Strategic Plan 2012-2036 ...... 13 Expenses & Payments ...... 76 Legal Proceedings...... 76 Rate and Charge Write-offs ...... 76 Special Variations ...... 77 Section 356 Donations...... 77 Contracts over $150,000 ...... 77 Mayor and Councillors ...... 78 Overseas Visits ...... 78 3 2015-2016 Annual Report Cowra Shire Council

Mayoral & Councillors Expenses ...... 78 Environment ...... 79 State of Environment Report ...... 79 Environmental Planning & Assessment Act 1979 Section 93G(5) ...... 79 Environmental Upgrade Agreements ...... 79 Fisheries Management ...... 79 Division 5 Recovery plans and threat abatement plan ...... 80 Stormwater Management ...... 80 Companion Animals ...... 81 Council Works & Services ...... 83 Private Works ...... 83 Capital Works ...... 83 Carers Recognition...... 84 Disability Inclusion Act 2014 ...... 84 Council Employment ...... 85 General Manager...... 85 Equal Employment Opportunity ...... 85 Organisations & Companies ...... 86 External Bodies — Delegation ...... 86 Controlling Interests in Companies ...... 86 Co-Operatives, Partnerships, Joint Ventures ...... 86 Public Information ...... 87 Public Interest Disclosure ...... 87 Government Information (Public Access) ...... 87 Finance ...... 91 Financial Report ...... 91 4 2015-2016 Annual Report Cowra Shire Council Cowra: Your Shire The Region Cowra Shire is located in central , two hours from — the nation’s capital —four hours from central , and eight hours from Melbourne or Brisbane. Bathurst and Orange are the major cities of the region. The runs through the Shire with Dam at its headwaters. The river provides town water supplies along its length as well as irrigation to river properties within the Shire and to the adjacent local government authority of Forbes and further onto (Condobolin).

The Cowra Shire Cowra Shire is located in the fertile Lachlan Valley covering an area of approximately 2810 km² and accommodating a resident population close on 12,476. The major urban centre in the Shire is the Cowra township which is the heart of the region. It’s been a long-established population centre since its early settlement as a river crossing in 1849 and later as a service centre for cattle-grazing and gold-mining in the area. There are also a number of small villages in the Shire including , Darbys Falls, , Morongla, Noonbinna, Wattamondara, Woodstock, and Wyangala. The histories of these settlements are varied but generally originate from early mining and agricultural activities in the latter half of the 19th century.

Cowra Regional Overview Statistic Indicator Population/Demographics Population (ABS data est.) 12,476 (ABS ERP 2015) Workforce employed persons aged 15+ 4,874 (NIEIR ending June 2015) Unemployment 8.90% (Profile.id March quarter 2016) Average Wage (Weekly) $792 (ABS by dwelling) Median weekly family income $1,012 (ABS) Median monthly mortgage repayments $1,100 (ABS) Median weekly rent $160 (ABS) Occupied private dwellings 5062 (ABS Census of population and housing 2011) Economy Gross Regional Product (GRP) $433 million (NIEIR 30 June 2015) Key GRP Contributing Sectors Agriculture 20.7% (Cat 8731, DEEWR (2014) Manufacturing 9.6% (Cat 8731, DEEWR (2014) Health Care 8.7% (Cat 8731, DEEWR (2014)

** Extract from Profile.id 2016, NIEIR,ABS 2011/15 & DEEWR 2014

The Cowra Local Government Association’s Gross Regional Product represents 4.5% of the Central West region’s Gross Regional Product. Overall, Cowra’s economy is largely driven by the agriculture sector and supporting industries such as health care, wholesale trade and manufacturing. Around 15.4% of the workforce is employed by “Agriculture, Forestry and Fishing” while Health Care and Social Assistance employs 12.2%, Retail Trade 11.5% and Manufacturing 10.3%. 5 2015-2016 Annual Report Cowra Shire Council

Cowra: Your Council Council’s Direction

Our Vision for Cowra In 2036, we will be… A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living.

Our Values In all our dealings, we will… Show and grow leadership; Be positive and work together; Value each other and what we have; Create opportunities for our next generations.

Our Goals Our Goals for the future are… Sustainability; Financially-viable and environmentally-sustainable outcomes; Local solutions to local problems; A long-term vision; Honest, open, objective, and accountable decision-making; Community involvement in decision-making; Continuous improvement; Cost-effective and commercially-competitive service delivery.

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Organisation Structure

7 2015-2016 Annual Report Cowra Shire Council

Contacting Your Council General Enquiries Cowra Shire Council Administration Centre 116 Kendal Street (Corner Darling & Kendal Streets) Cowra Private Bag 342, Cowra NSW 2794

Main Switch: (02) 6340 2000 Main Fax: (02) 6340 2011 Email: [email protected] Web: www.cowracouncil.com.au

Operating Hours Monday to Friday 8.30–4.30pm

After hours phone service Council’s phone lines are open from 8.30–4.30pm, Monday to Friday; after-hours a 24-hour emergency service is available on: 0419 219 231. Departmental Enquiries General Enquiries General Enquiries/Records/Information 6340 2000 Corporate Services Department Street Stalls/Administration/Finance 6340 2006 Art Gallery 6340 2190 Library 6340 2180 Civic Centre 6340 2130 Rates 6340 2028 Water Billing 6340 2029 Accounts Payable 6340 2100 Accounts Receivable 6340 2089 Infrastructure & Operations Department Water/Sewerage/Roads/Parks 6340 2070 Depot Operations 6340 2120 Garbage/recycling services 6340 2140 Aquatic Centre 6340 2150 Airport Reporting Officer 0429 987 615 Environmental Services Department Health/Building/Planning 6340 2040 Council’s Ranger services 6340 2052 General Manager’s Office Executive Personal Assistant 6340 2013

8 2015-2016 Annual Report Cowra Shire Council Cowra: Your Representatives Elected Representatives: Councillors

Cr Bill West Cr Judi Smith Cr Ian Brown Cr Ruth Fagan Cr Jack Mallon Mayor Deputy Mayor

Cr Bruce Miller Cr Ray Walsh Cr Kevin Wright Cr Peter Wright

9 2015-2016 Annual Report Cowra Shire Council About the Councillors

Every year, the elected members elect a Mayor and Deputy Mayor. During the term of this report Councillors were elected and held these positions as follows during 2015-2016:

1 July 2015 – 30 June 2016

Mayor — Councillor Bill West Deputy Mayor — Councillor Judi Smith

Councillors are residents and ratepayers and share the community’s concerns about the quality of life in the Shire. They determine Council policy and are responsible for planning its future directions.

Further, should you wish to raise an issue with all elected members, Council conducts an open forum at 5pm prior to each General Committee and Council meetings. Items listed on the agenda for the General Committee may be presented by members of the public at those meetings. Both general issues and agenda items may be raised by members of the public at the open forum prior to the commencement of the Council meeting.

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A Word from the Mayor & General Manager Cowra “Fit” for a very bright future!

It was good news for Cowra Shire residents, ratepayers, and businesses in 2015/2016 with the State Government officially declaring Council “Fit for the Future”.

During the independent review into local government finances, Council benefitted from the many years of sound financial discipline and long-term planning with the review providing Cowra a clean bill of health which should guarantee the continuation of our Shire into the future.

Other highlights of the 2015–2016 financial year included plans for next phase of Cowra’s Kendal Street refurbishment with major renewal work on the main street’s footpaths. Council is looking at options for the continuing upgrade that is designed to create a more pedestrian and visitor-friendly shopping precinct that reflects the cultural and social uniqueness of the Cowra district.

Redevelopment of Cowra’s community theatre into the “Premiere Cinema” with the latest digital sound and projection equipment followed an $84,000 upgrade. The project is the culmination of a four-year funding and lobbying campaign from the Youth Council and Cowra Council to allow Cowra residents the chance for regular movie screenings without having to leave town.

In other civic news, the Sport and Recreation Plan has been updated in consultation with local community groups.

New solar panels at Cowra Council’s Materials Recycling Facility (MRF) highlights a facility that already has a 90 per cent recycling rate. The 80-panel, 20 kilowatt system will reduce energy costs at the MRF by about two-thirds from about $15,000 a year to $5000 per annum.

Cowra Airport is also now taking-off with a new aviation development featuring 21 freehold lots for tender. The development aims to utilise the huge potential of the airport — which is wholly-owned by Cowra Council — to benefit aviation-related industries, job creation, the local community, and economy with tenders opening on June 20.

Capital works include significant water mains replacement programs in Woodstock, Wattamondara, and , and the staged expansion of the Cowra cemetery.

Other positive developments include the continuation of planning for the heavy vehicle alternative route for Cowra that is designed to remove heavy vehicles from our main street.

These initiatives highlight how Cowra is delivering to its ratepayers in the present, while effectively planning for the future.

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Principal Activities

Local Government Act 1993 and General Regulation Section s428(1) Council’s achievements in implementing the Delivery Program and the effectiveness of the principal activities undertaken in achieving the objectives at which those principal activities are directed.

Overview

Council’s operational objectives for the previous 12 months are detailed as follows and reflects the major operational areas for the Council for the past one (1) year period and measures progress and is categorised in seven distinct future directions:

Health & Well-Being Education Training & Research Lifestyle Governance Business & Industry Transport & Infrastructure Natural Resource Management.

Council has varying degrees of responsibility in implementing these objectives and limited funds with which to operate. The major operational areas of Council for 2015-2016 and its achievements are set out in the following pages following the Annual Review of the Delivery Program 2012-2017 and the Operational Plan 2015-2016.

Executive Summary

The integrated Delivery Program (2013-2017) / Operational Plan (2015-2016) is based on the Community Strategic Plan and outlines how Cowra Council will undertake to work towards meeting the goals of the community over the four year term of elected members and on an annual basis.

The Delivery Program objectives have been set at the beginning of this Council term and will remain substantially unchanged over the four year period. The Operational Plan actions show how from year to year Council will work towards the Delivery Program objective. The Operational Plan also includes Council’s detailed annual budget and revenue policy including fees and charges.

The integrated planning and reporting provisions of the Local Government Act require a progress report on the Delivery Program be provided to the community each six months with a comprehensive final report to be published at the conclusion of each four year term of office.

12 2015-2016 Annual Report Cowra Shire Council This review is as at 30 June 2016. Whilst the body of the review presents a detailed assessment of performance against objectives the following summary of significant items is provided with achievements grouped under the seven Key Directions of the Cowra Community Strategic Plan.

Health and Well-being Provided funding to three local businesses to assist with disability access to their premises Conducted Seniors Week events Provided flu vaccinations to all Council staff Youth Council conducted inaugural “Colour me Happy” colour run Held a community event to recognise volunteers during NSW Volunteers Week Provided funding to 32 Community groups under round two of the Cowra Community Grants scheme Youth Week program delivered with six feature events

Education, Training and Research Three new trainees commenced with Council under annual Traineeship program In conjunction with the NSW Office of Environment and Heritage, conducted workshops for local business on energy efficiency

Lifestyle Promoted and participated in NAIDOC Week activities Hosted a very successful Festival of International Understanding featuring Tonga as Guest Nation Adopted Cowra Shire Sport and Recreation Plan Placed Sculpture Park Plan on public exhibition Conducted Day activities

Governance Adopted Building Asset Management Plan Held meeting in all Shire villages 2016-2017 Operational Plan adopted 2016-2026 Long Term Financial Plan updated and adopted

Business and Industry Delivered, in conjunction with Business Enterprise Centre, 90 Day Accelerated Business Breakthrough program for five Cowra businesses with excellent feedback received from participants Continued to advocate for the re-opening of the Blayney – Demondrille rail line Completed public exhibition of design concepts for upgrade of CBD footpath Improvements to Cowra Regional Saleyards including new lighting, additional ramps and fencing

Transport and Infrastructure Draft Review of Environmental Factors for heavy vehicle alternate route placed on public exhibition Successfully completed Roads to Recovery program

13 2015-2016 Annual Report Cowra Shire Council All works completed for NSW Roads and Maritime Services Completed water main replacement programs in Woodstock, Wattamondara and Koorawatha

Natural Resource Management Continued to work with and support Cowra CLEAN Inc. Roadside Vegetation Management Plan implemented Constructed new Community Recycling Centre

Community Strategic Plan 2012-2036 Health & Well-Being (Strategic Theme 1) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: H1 Research and identify the future needs of aged care accommodation and support services 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H1.1 Improve access for aged H1.1.a Investigate potential for Meet with local providers and relevant General Manager Council made Council has had ongoing persons in high movement additional aged care Government to determine capacity for representations to discussions with a number of public environments as well as accommodation in Cowra development in the aged care industry Commonwealth and State developers keen to pursue shops, offices and public and work with relevant Advocate with Government for Governments on the developments aimed at the buildings and places stakeholders to encourage targeted strategies to encourage legislative regime affecting aged population. development to meet developers to meet demand for aged Aged Care facilities following demand. care accommodation. an approach from Bilyara. The local member has been contacted advising of Council’s desire to accommodate additional developers in this field in the Shire. H1.1.b Completion of the design Design finalised after consultation with Director – Environmental Concept plans placed on Detailed Design completed plans for Kendal Street business owners and wider community. Services public exhibition in top block. footpath treatment and December 2015 until Detailed Design bottom street furniture with Commence construction by 30 June February 2016. block in progress. consideration for the elderly. 2016. Construction not started – still subject to funding Complete design for Squire Park Plans completed and costed approval. refurbishment of Squire Park. after consultation with community. H1.1.c Prepare a Disability Inclusion A Disability Inclusion Plan to be Director – Environmental Report coming to the January $30,000 in the 2016/17 Plan (DIP) completed and adopted by Council Services Information meeting – budget to prepare the when the legislation has been finalised. request for a budget Disability Inclusion Plan. allocation to engage a consultant. A brief has been prepared for dissemination to Consultants and to be completed by 1 March 2017.

14 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H1.1.d Continue to implement Seek funding for Pedestrian and Director - Infrastructure & Projects C2 (design), C3 and C2 design completed. Pedestrian and Cycling Plan Cycling Plan projects. Operations C6 gained funding and are on C3 and C6 projects projects subject to funding track for implementation. completed. Some defects to approval. be addressed during maintenance periods. H1.1.e Maintain the Access A number of programs completed and Director – Environmental Ongoing – promotion 3 grants Issued for the Incentive Program, with promoted in local media subject to Services ongoing. 2015/2016 financial year to stronger emphasis on sight available budget assist businesses with and hearing impaired persons disability access. and mobility issues H1.2 Increase public awareness H1.2.a Regular promotion of local Council to raise awareness of aged Director – Corporate Seniors Week activity Seniors Week held during of health related issues activities and events that are related needs during Seniors Week Services planning commenced in April included 10 events. particularly relevant to an aging user friendly for aged and November for April events. Council hosted one event demographic, including need for disabled persons Wherever possible and within and supported each of the disabled parking, improved resources facilities for aged and disabled nine other events. pedestrian access, sharing the persons provided in all Council run CBD events Cowra Sport & Recreation Plan, adopted May 2016, identified investigation into transport for seniors to sporting activities.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: H2. Provide facilities and programs for health and well-being needs including disability and mental health services 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H2.1 Support and encourage H2.1.a Support and encourage Meetings held with Sport and Director – Corporate Services Bike Week activities Sport & Recreation Plan programs that promote health participation in sport, Recreational Council, Cultural conducted with three local review, forum and survey and well-being recreation and cultural Council as well as individual children’s services for safety conducted to develop 2015- activities. sport, recreation and cultural and health promotion. 2019 Sport & Recreation Plan. groups to develop and implement activities. Support for Mental Health Sport & Recreation Council Month activities provided meetings held quarterly. during October. Sport & Recreation Plan 2016 - Sport & Recreation Plan 2020 adopted May 2016. review, forum and survey Facility development and conducted to develop 2015- upgrade program included. 2019 Sport & Recreation Plan.

Sport & Recreation Council meetings held quarterly.

15 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H2.1.b Patrol disabled parking spaces Regular patrols of disabled Director – Environmental New Rangers appointed and Ongoing. to ensure they are being parking spaces in Cowra CBD Services car parking is being conducted. correctly used. are conducted. Media being prepared for the new school year in relation to safety and parking patrols.

H2.1.c Provide water/sewer and Services provided to a high Director – Infrastructure & Treatment Plants operating Treatment Plants operating waste services that contribute standard in accordance with Operations well. Mains repaired as well with no problems. to community health and well- adopted Asset Management necessary. being. plans and Long Term Financial Cowra WTP upgrade plan. completed and automation functioning well.

H2.2 Provide opportunities for H2.2.a Administer health programs Arrange Skin Cancer clinic and Director – Corporate Services Ongoing Skin Checks. Flu vaccinations provided to staff to participate in a range of for employees and adequately Flu vaccinations for staff and Healthy Body at Work staff in March. health and well-being programs resource appropriate health pursue general health issues as Program Run. Skin checks to be arranged in and well-being initiatives. they arise. Planning for exercise program the next financial year. at Depot to start in new year. Smoking cessation assistance Measure program outcomes in Staff offered support if they program to be offered in the terms of sick leave and want to stop smoking. next financial year. Workers Compensation usage reduction.

H2.3 Support and participate in H2.3.a Respond to requests within Reports provided to Council Director – Corporate Services Support provided for Respond to requests from the Cowra Interagency to resources. on matters relating to Council Christmas events and Cowra Interagency on an as- contribute to partnerships in areas of responsibility. fundraising activities to Cowra needs basis. community wellbeing initiatives Information & Neighbourhood Centre, Adventure Playground Weekly photocopying Committee, Youth Council. assistance is provided.

Weekly photocopying assistance provided.

H2.4 Work with the Cowra H2.4.a Provide administrative support Procedural and administrative Director – Environmental Ongoing. Ongoing. Access Committee to assist in to the Cowra Access support provided at all Services identifying and addressing Committee Committee Meetings priority access issues Technical support provided at all Committee Meetings where requested

Minutes taken for all Committee meetings and reported to Council prior to the next Access Committee meeting

16 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H2.5 Inspect and enforce H2.5.a Maintain a food shop All high risk food premises in Director – Environmental Ongoing – food shop Inspections have been health standards through a inspection program that is the Cowra Shire inspected and Services inspections have commenced completed for the 2015/2016 regular food shop inspection proactive and educational, and action taken to achieve for this year. period. 84 food shop premises program also responds appropriately to compliance were inspected. breaches of the health Promotion of best practice standards food handling procedures,

equipment and training programs undertaken via Council website and direct contact with food businesses. H2.6 Provide companion H2.6.a Maintain a ranger service Dog attacks and nuisance Director – Environmental New Rangers appointed late in Ongoing. animal management services throughout Cowra Shire that complaints are responded to in Services 2015. across the shire responds to customer requests accordance with Cowra relating to companion animals Ranger Services Procedures Manual and Council’s Guarantees of Service

Regular patrols of Cowra and surrounding villages

Where appropriate, publicise Companion Animals Act and obligations on pet owners in media. H2.6.b Provide a companion animal Regular promotion of Director – Environmental Ongoing – this has been very Ongoing and working very re-homing incentive program companion animals available for Services successful. Great Dane well. re-homing conducted in local Rescue, Cowra Veterinary media. Hospital and other groups are working with Council with Financial incentives available to very positive outcomes. persons wishing to own a Statistics are being compiled pound animal, including and will be reported to discounted micro-chipping and Council Jan/Feb. registration fees H2.7 Ensure WorkHealth & H2.7.a Review and adopt Work Work Health Safety Action Director – Corporate Services Monthly meetings held. Monthly meetings with internal Safety compliance of both staff Health Safety Action Plan. Plan and adopted by Council by Rehabilitation Programs W/Comp management group and others in the workplace 31 July 2015. implemented ASAP for cases held. The Workers Compensation that require specialist access. Claims review held with Management Group will review StateCover on 6 June. all current cases on a monthly $39358 being reimbursed from basis to Statecover. No further reimbursements identify/respond/manage issues. received from State Cover Training given to Supervisors since last payment in Maintain an effective and Managers from Statecover December 2015. relationship with StateCover on responsibilities for injured WHS Committee supported to ensure all cases are workers. managed effectively thus and regular meetings held. OHS tickets issued for unsafe minimising Council’s liability. WHS considerations applied work practices and behaviour. for purchase of goods and Comply with all relevant legislation and subsidiary codes services.

17 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility to provide a safe working environment and protection of the public and within reasonable budget limits provide resources necessary to meet requirements.

Ensure WHS provisions for the purchase of goods and services for Council operations.

Support operation of Council’s Work health Safety Committee and its operation under legislative requirements. H2.8 Maintain community H2.8.a Maintain a ranger service Regular patrols of Cowra and Director – Environmental New Rangers appointed late in Regular patrols being safety by management of public throughout Cowra Shire that surrounding villages are Services 2015. undertaken. nuisance in line with responds to customer requests undertaken to identify, community expectations monitor and respond to public nuisance complaints H2.8.b Enforce signage to ensure Regular patrols of timed Director – Environmental New Rangers appointed and Weekly parking being Council requirements are parking spaces in Cowra CBD Services car parking is being conducted. conducted – more when being complied with and school zones. Media being prepared for the required. new school year in relation to Where applicable, promote safety and parking patrols. vehicle parking obligations in media. H2.9 Improve facilities for H2.9.a Review effectiveness of existing Report findings to Council. Director – Environmental The leash free areas will be Review of off-leash areas being passive recreation for all ages leash free areas Services reviewed as part of the Action finalised. Report to be with their companion animals Plan in the Companion Animal presented to Council before Management Plan (CAMP) and community consultion. ‘Who Let the Dogs Out’ program. A report will be coming to Council in March to endorse the CAMP and the program will roll out from there. H2.10 Maintain and improve H2.10.a Provide appropriately trained Training and recruitment Director – Infrastructure & Training and recruitment Full complement of staff during the current high standard of staff undertaken. Operations ongoing as required. season and all positions the Cowra Aquatic Centre appropriately trained. H2.10.b Maintain swimming pool water Swimming pool water quality Director – Infrastructure & Carried out weekly testing for Water meets standards. quality compliance. standards are met at all times. Operations Department of Health. Continue with current process. H2.10.c Investigate additional facilities Investigations undertaken and Director – Infrastructure & Investigations undertaken on Investigations into splash park to expand the use of the proposals reported to Council Operations existing infrastructure assets at Centre being held with aquatic centre in the current for endorsement and that need attention and to be consultants and appropriate opening season. consideration of funding. addressed in the 2016/17 site visits undertaken. Splash Operational Plan. Park, other attractions and infrastructure audit have been investigated and there will be a report to Council in the near future.

18 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility H2.11 Support the Woodstock H2.11.a Support Community with Donation made and technical Director – Corporate Services Donation completed within Donation completed within community in the maintenance donation towards operation of advice given if required. first Six Months. first Six Months. and council and improvement of Woodstock swimming pool also provided funding to Woodstock Swimming Pool facility (budget allocation upgrade filter equipment. $6,000) H2.12 Maintain parks and H2.12.a Maintain Ornamental Parks and Parks and Gardens maintained Director – Infrastructure & Ongoing – no complaints from Parks & gardens maintained to gardens to the current high Gardens in accordance with adopted Operations users. required standards. standard service level standards. Community Survey showed high level of community appreciation of parks and gardens.

H2.13 Work with the Cowra H2.13.a Develop promotional program Community, Cultural and Director – Corporate Services Cowra Sport & Recreation Sport & Recreation Plan Community to ensure optimal to ensure maximum usage of Sporting groups contacted and Planning undertaken in adopted May 2016. Planning use of Cowra sporting facilities facilities encouraged to utilise council November 2015 with local forums included participation and programs facilities. sporting bodies and from 7 sporting and recreational groups. Facilities recreational clubs; community plan to be included in final Plan. surveys were also conducted to assess future needs.

Bike Week activities conducted at local preschools and Erambie Shared Pathway.

H2.13.b Identify and pursue funding New funding opportunities General Manager Grant funding opportunities Grant funding opportunities opportunities commensurate communicated to Cowra Sport relevant to sporting and relevant to sporting and with identified sporting and and Recreation Council and recreational facilities are recreational facilities are recreational needs relevant individual groups regularly discussed with continually reviewed. On-going where appropriate. Council’s Community Projects discussions held with Council’s Officers and appropriate staff Community Projects Officers Technical assistance provided in the Infrastructure and and appropriate staff in the to complete funding Operations Department. Infrastructure and Operations applications where requested. Department. Grant funding applications submitted for: Grant funding applications Construction of a pathway submitted in answer to from the Caravan Park to Low identified sporting and Level Bridge. regreational needs: Construction of shared use Funding to assist revitalise pathway along northern side of Apex Park – corner of Lachlan and Comerford Street. Railway Street between Darling Street and Fitzroy Funding to assist Council stage Street. 2017 Festival of International Understanding. Installation of disabled access to stage at Cowra Civic Centre.

19 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month 1 Year Operational Plan 2015-2016 Six Month Review Program 2013-2017 Review Program Link Action Performance Measure Responsibility Funding to renovate Kendal Street footpath between Brisbane and Lachlan Streets. Funding to install retractable tiered seating in Cowra Civic Centre theatrette. Funding to assist Council promote bike safety for young riders. H2.14 Work with Police and H2.14.a Participate in meetings and/or Attend and participate in General Manager Mayor attended Canobolas Mayor attended Canobolas other stakeholders to support discussions with police and discussions LAC Safety Precinct meetings. LAC Safety Precinct meetings. programs improving other stakeholders in relation community safety to identified programs

H2.14.b Advocate for adequate Correspondence sent and General Manager Mayor attended Canobolas Mayor attended Canobolas operational policing numbers in meetings held with relevant LAC Safety Precinct meetings. LAC Safety Precinct meetings. Cowra Shire State Government stakeholders where appropriate

Technical assistance provided to Council to lobby relevant State Ministers where appropriate

Media and promotions undertaken where appropriate

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: H3. Investigate ways to attract and retain health professionals 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility H3.1 Advocate for the H3.1.a Noting that a new hospital Regular attendance at General Manager Mayor as Member of Health Mayor as Member of Health development of state of the is not required at this time, Health Council meetings. Council attends meetings. Council attends meetings. art hospital facilities and work with the Hospital services Board, Health Council and Letters sent to relevant MPs other bodies in lobbying the advocating for expansion of NSW Government to health services on offer in ensure the range of facilities Cowra. at Cowra Hospital is retained and expanded.

20 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility H3.2 Liaise with local H3.2.a Support and facilitate the Council’s website General Manager Promoted health issues in a Promoted health issues in a medical and allied health Centroc “Beyond the incorporates link and range of Council media range of Council media professionals to identify Ranges” concept. relevant information releases. releases. community healthcare provided by “Beyond The needs Ranges”. Beyond the Ranges (BTR) website launched by Federal Council support Minister for Rural Health, information by providing Fiona Nash, on 4 November updates from time to time 2015. Launch of the to “Beyond The Ranges” website has been promoted coordinator. via Council Facebook and Twitter pages. Good media generation has resulting in increases in Facebook followers and hits to the BtR website. Updates and liaison with Centroc on this initiative is ongoing.

H3.3 Advocate for and H3.3.a Liaise with Health Council Correspondence sent and General Manager Mayor as Member of Health Mayor as Member of Health support the provision of and medical fraternity to meetings held with relevant Council attends meetings. Council attends meetings. new medical facilities identify gaps in provision of State Government facilities. stakeholders where Council advocated on behalf appropriate. of the Cowra Medical community for the Participate in as appropriate continuation of exemptions and support the Integrated for medical imaging services Care project being currently operating in undertaken by the Kendal Cowra. Street Medical Service in conjunction with NSW Health.

21 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: H4. Support and encourage voluntary community services 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility H4.1 Work with Cowra H4.1.a Respond to requests from Respond to requests for Director – Corporate Cowra Food Hall supported Youth Opportunities Community Groups and Community groups. information and assistance Services on weekly basis with funding application other organisations to within budget and resources photocopying assistance. submitted June 2016 to identify and support the assist community work of voluntary organisations with community service volunteering needs for providers young people. Application is a partnership between 355 Committees – Youth Council & Sport & Recreation Council. H4.1.b Undertake publicity and Media and promotions General Manager Heavily supported the Held a community event for promotion of volunteerism. program undertaken. Boomerang March re- Volunteers Week. enactment with the theme “The Ultimate Volunteers”. H4.2 Actively encourage H4.2.a Undertake publicity and Media and promotions General Manager Promoted a number of Promoted a number of community volunteering promotion of volunteerism. undertaken at least once volunteer groups in media volunteer groups in media every six months. including Cowra Quarterly, including Cowra Quarterly, Talkabout and Noticeboard. Talkabout and Noticeboard. Host “Volunteers Week” morning/afternoon tea event at Council Chambers.

H4.3 Continue to support H4.3.a Provide funding for Funding delivered and General Manager Revised Cowra Community Revised Cowra Community the community through projects that meet projects implemented. Grants program designed Grants program established provision of Community Community Strategic Plan and introduced August and operating successfully. Strategic Plan funding objectives. 2015. Round 1 - 2015/2016 Round 2 – 2015/16 successfully completed – 35 successfully completed – 31 Applications received for Applications received for projects totalling projects totalling $38,661.00. Funded - 25 $30,132.00. Funded – 23 projects with a total value projects with a total value of $25,500. of $21,857.30.

H4.4 Provide support for H4.4.a Council to chair Local Meetings held quarterly General Manager Meetings are held quarterly Meetings are held quarterly emergency services in Emergency Management with State Emergency as required under State as required under State Cowra as required Committee. Service, Police, Rural Fire Emergency and Rescue Emergency and Rescue Service, LEMO and others. Management Act 1989. Management Act 1989.

H4.4.b Council to provide a Local LEMO undertakes Director – Corporate This is ongoing and This is ongoing and Emergency Management administration for the Local Services monitored at LEMO level. monitored at LEMO level. Officer (LEMO). Emergency Management Committee.

22 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: H5. Develop programs to meet the needs of Cowra’s young people 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility H5.1 Continue to promote H5.1.a Attend Youth Council Meetings attended, minutes Director – Corporate Cowra Youth Council Cowra Youth Council and support the Cowra Meetings held on a monthly taken and regular reports Services meetings held monthly. monthly meetings attended. Youth Council basis. on key issues reported to Six monthly report on Manex and Council. Annual nominations held activities presented to during October with 14 Council in June. members endorsed for 2016. H5.1.b Coordinate regular Youth Events co-ordinated in Director – Corporate Movie nights continue on Youth Council partnered Council events. accordance with programs Services monthly basis, hosted by with Council, PCYC and developed including Youth Youth Council with staff Festival Committee to Week. support. conduct the ‘Colour Me Happy’ Run. Very Youth Council hosted stall successful event with 560 and survey at Christmas entrants and $8400 raised Night Markets. for PCYC.

Cowra Youth Council Leadership Day conducted hosted Annual World Peace for Year 10 & 11 students in Day Forum for young April people in September 2015. Youth Week Program Youth Council planning delivered with 6 events, Youth Week 2016 activities including Seniors movie and Festival ‘Colour Me afternoon. Happy’ colour run event. Cowra Premiere Cinema established. 33 film screenings hosted from Aug 15-June 16.

H5.2 Advocate for H5.2.a Advocate for retention Correspondence sent and General Manager Promoted Headspace Promoted Headspace retention and expansion of and/or expansion of youth meetings held with relevant events in media including events in media including youth services as mental health and welfare State Government Cowra Quarterly and Cowra Quarterly and appropriate services eg Headspace, stakeholders where Noticeboard and the work Noticeboard and the work PCYC, Gumbaya, homeless appropriate. of the Cowra Youth of the Cowra Youth shelter. Council in supporting this Council in supporting this Technical assistance group. group. provided to Council to lobby relevant State Promote the work of Promote the work of Ministers where Headspace and other youth Headspace and other youth appropriate. services through Council services through Council publications and the work publications and the work of Media and promotions of the Cowra Youth the Cowra Youth Council. undertaken where Council. appropriate.

23 2015-2016 Annual Report Cowra Shire Council Education Training & Research (Strategic Theme 2) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: E1. Making Cowra a Learning Community 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility E1.1 Liaise with post school E1.1.a Promote linkages between Correspondence sent and General Manager Both TAFE and other Have successfully engaged education providers to TAFE, Business Chamber, meetings held with relevant RTO’s have been engaged with RTO’s, skills improve access and remove Cowra Building State Government and connected with local development organisations, impediments for Cowra Construction Group, High stakeholders where Businesses through the local business collectives residents seeking to further Schools and the Community appropriate. Business Chamber and and government bodies to skills/education with the aim to facilitate Cowra Building advocate and facilitate targeted funding rollout in Technical assistance Construction Group. funding for workshops and Cowra. provided to Council to AusIndustry Skills adviser forums delivered lobby relevant State Jenny Symons has also been throughout the year. Ministers where engaged by the Business Funding was secured appropriate. Chamber to assist with through Federal , State and accessing grant funding from Local Government. (MDB – Media and promotions the Industry Skills Fund to EEF; BEC & Council) and undertaken where assist with retail skills delivered through tailored appropriate. training in Cowra. programming rollouts.

E1.2 Provide a Council E1.2.a Maintain a Cowra Council Review the current Trainee Director – Corporate Advertising for four trainees Three trainees commenced, Traineeship program traineeship program. program to assist in Services to start in the new year. currently recruiting for a developing the ongoing fourth trainee. program for 2015/16.

Trainees are engaged each year on a calendar year basis.

E1.3 Provide work E1.3.a Provide Work Experience Respond within resources Director – Corporate Continues on an ongoing Continues on an ongoing experience placement Program for Secondary and to Cowra Schools and Services basis. Council will respond basis opportunities for Cowra Tertiary students. TAFE to provide a Work to requests as they are students Experience program. received.

24 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: E2. Maintain and develop learning infrastructure and programs to respond to education and training needs 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility E2.1 Continue to support E2.1.a Manage operation of Library Budget and management Director – Corporate Meetings attended and CWL operation now being Cowra Library with Central West Library objectives for 2015/16 Services issues addressed as they reviewed in light of Service (Orange City financial year are developed arise. Budget of Central amalgamations of which will Council) to operate Cowra in consultation with Central West Libraries is area of see reduction in number of Library. West Library Service. concern and Council has individual Council’s. expressed view that 2016/17 budget to be prepared on 1.8% rate rise.

E2.2 Maintain Cowra E2.2.a Coordinate and facilitate Provide information and General Manager To date 3 Cowra businesses This year has seen the Entrepreneur Program or the rollout of targeted facilitate medium to large have participated in rollout of many capacity similar program to build capacity building business engagement with AusIndustry’s Entrepreneur building programmes and capacity in local businesses events/workshops identified AusIndustry’s Entrepreneur Infrastructure Programme initiatives. In the last six in collaboration with the Development Programs and delivered by Sally Palmer. months, Cowra Council in Cowra Business Chamber Incentives. Smaller businesses have conjunction with BEC has and the Cowra Building Facilitate capacity building been offered the rolled out the 90 Construction Group. workshops/seminars in opportunity to participate in Accelerated Business conjunction with Central capacity building workshops Breakthrough program in NSW Business Enterprise (4 to date with 3 more to which 5 Cowra businesses Centre (CNSWBEC) for follow in the New Year) participated and completed small and start-up under the ASBAS the program. This program businesses in Cowra. (Australian Small Business was co-funded by council to Assistance Scheme) the tune of $500 per Facilitate and host training Programme. The workshops business on completion of seminars focussing on what have been well supported the program. and how to draft successful and provided free of charge Government construction to council and participants In conjunction with OE & tender purposes. by CNSWBEC. H’s sustainable advantage program, Council hosted a Cowra Council staff (David two part Energy Efficiency Smith, George Ridley, Workshop for business, Harvey Nicholson, Kate Industry and neighbouring Alberry & Ponie De Wet) shires which would assist facilitated the development and show participants how & delivery of 7 information to build a business case for Seminars over a 2 month energy efficiency projects. period. The subject matter The workshops were of the seminars provided provided at a participants with insight into $100/registration charge. the drafting of compliant tender responses, project management plans & procedures, forms of

25 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility construction contract, environmental management, quality management, risk and work place health and safety management plans and procedures. A total of 11 participants signed up and completed the series of seminars. Feedback has been very positive and succeeded in improving council’s engagement with the building industry in Cowra.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: E3. Build a mutually supportive education sector 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility E3.1 Facilitate discussion E3.1.a Attend meetings with Feedback sought and issues General Manager Promoted Cowra Building In the past 6 months council between educational Cowra Business Chamber highlighted detailing and Construction Group has worked closely with the institutions, business and and Cowra Building challenges for employers through Noticeboard and business chamber to training providers to assist Construction Group, and students accessing or social media. Supported promote the services of the students make the including other relevant entering the local education and TAFE NSW business chamber to transition from school to stakeholders to discuss workforce. supplements in the Cowra employers and businesses in the workforce constraints and Guardian. the shire. opportunities for students Correspondence sent and and prospective employers. meetings held with relevant The business chamber and In collaboration with State Government building construction group AgriFood Skills Solutions, stakeholders where has indicated ongoing Council applied for funding appropriate. struggles with the availability under the third round of of suitable training courses MDBEEF grant program for Technical assistance delivered locally in Cowra. funding to do a skills needs provided to Council to analysis, to develop a lobby relevant State Due to changes in TAFE potential skills labour Ministers where funding & delivery models, solution and to roll out a appropriate. Cowra TAFE no longer has subsequent employer the capacity to deliver capability building initiative. Media and promotions relevant courses locally, Results on these three undertaken where making it very difficult for funding submissions will appropriate. learners to attend training only become known in the

26 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility that requires out of town new financial year. travel & accommodation.

Help Temporary Employment Agency was also consulted as a possible stop-gap solution for existing skills shortages.

Potential to address skills shortages and specialisation requirements is currently being investigated with Agrifood Skills Solutions in an effort to address future capacity needs in the sector.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: E4. Strengthen the role and use of local education and training providers 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility E4.1 Research and utilise E4.1.a Wherever possible that Quotations sought from Director – Corporate Training providers engaged CENTROC arrange the appropriate local service Council utilise local training local providers for planned Services through Centroc. majority of training providers providers in delivering staff training programs. Quotations to be reviewed programs through the list of training subject to cost in new year. preferred training suppliers. comparisons. Suppliers are mostly based Local Providers have in the local region. supplied quotations.

27 2015-2016 Annual Report Cowra Shire Council

Lifestyle (Strategic Theme 3) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: L1. Build Strong linkages with our indigenous Community

4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L1.1 Acknowledge Cowra L1.1.a Acknowledge Cowra Shire Appropriate welcome General Manager Mayor delivers Mayor delivers Shire is country as Wiradjuri Country at all delivered at functions. Acknowledgement of Acknowledgement of civic functions. Country at all civic Country at all civic Aboriginal flag flown in functions. functions. accordance with Flag policy. Aboriginal flag flown in Aboriginal flag flown in Maintain Welcome to accordance with Flag accordance with Flag Policy. Wiradjuri signs at Cowra Policy. town entries. Signs maintained and Signs maintained and replaced/repaired as replaced/repaired as required. required. Promote NAIDOC Week Promote NAIDOC Week events in Cowra through events in Cowra through media releases, media releases, Noticeboard, Quarterly. Noticeboard, Quarterly. Provide sponsorship for Provide sponsorship for NAIDOC Week events in NAIDOC Week events in Cowra. Cowra.

L1.2 Work with the L1.2.a Work with the local Cowra Bridge Murals General Manager Bridge Murals project Copyright and ownership Aboriginal community to Aboriginal community to Project Design/Management working group formed. has been established. promote stronger links, determine plan for Plan developed in Investigation into mural Consultations with identify common goals and refurbishment of bridge accordance with Cowra refurbishment underway. stakeholder groups have projects pylon murals. Shire Aboriginal Cost estimates being taken place to prepare an Consultation Policy. developed. Expression of Interest for the refurbishment of murals. Funding applications Request issued to (Project is subject to grant submitted to assist with Aboriginal Groups/Persons funding to be followed by an implementation of the to deliver Cultural EOI process). Cowra Bridge Murals Awareness to staff. Closes Project. 18 December 2015 Les Coe, Jason Munro and Ester Cutmore agreed to conduct Cultural Awareness training. Training to be arranged for 2016-2017 financial year.

28 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L1.2.b Meet at least annually with Mayor and General Manager General Manager The CLALC has recently The Mayor and General Cowra Local Aboriginal attend meetings. been reformed with a new Manager have met together Land Council. executive. Attempts will and separately with be made to meet with the numerous aboriginal groups executive in the first half of and individuals as requests 2016. The Mayor and come in. General Manager have met together and separately with numerous aboriginal groups and individuals as requests come in.

L1.2.c Consult with the local Consultation undertaken in General Manager Council regularly Council regularly undertakes Aboriginal community on all accordance with Cowra undertakes consultation consultation with the local Council works and projects Shire Aboriginal with the local community community on relevant that have the potential to Consultation Policy. on relevant projects eg projects eg Valley View, impact upon Aboriginal Valley View, relocation of relocation of scar trees, cultural heritage. scar trees, CBD footpath CBD footpath redevelopment, water redevelopment, water mains mains replacement replacement programs etc. programs etc.

L1.2.d Investigate opportunities for Research and consultation Director – Corporate Environmental Services Cultural Council continues an Aboriginal Cultural and completed and report Services currently investigating to research and investigate Performance Centre, submitted to Council. suitable interpretation of the general need for a preferably as a component unique Cowra Aboriginal museum/s in Cowra of a Museum for Cowra. history and culture as a including Aboriginal This item is identified in the component with Valley interpretation. Museums Cowra Shire Cultural Plan. View area. and Galleries NSW representative conducted forum in June to explore various options.

L1.2.e. Consult with local Consultation undertaken Director – Environmental Ongoing discussions – this The remnant parcel of land Aboriginal community to and a plan for the housing of Services is likely to be an outcome will be incorporated into the relocate remains of scar the remains of the scar of the Valley View review. Peace Precinct. Grant trees for preservation. trees is agreed to. funding opportunities will be sought for the design of the area to house the remnant scar trees. Preliminary designs have been undertaken after consultation with the Aboriginal Community in 2014.

29 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L1.3 Identify mutually L1.3.a Work with Aboriginal At least one funding General Manager On-going consultation held On-going discussions held in beneficial grant funding community to lodge funding submission lodged annually. in relation to individual relation to potential projects opportunities for local submissions for projects projects including bridge with relevant Council staff. Aboriginal groups and assist identified by the local murals and refurbishment Offer to assist with grant in completion of Aboriginal community. of Erambie Oval. funding applications has applications been extended to individuals. No grant applications submitted 2015- 16.

L1.4 Improve Aboriginal L1.4.a Council’s recruitment Where appropriate Director – Corporate No positions identified at No targeted positions access to employment program endeavours to recruitment specifically Services this time. identified at this stage for opportunities reflect Cowra’s target Aboriginal people eg Aboriginal people. demographic mix. Aboriginal Lifeguard at Aquatic Centre.

L1.5 Liaise with Aboriginal L1.5.a Maintain a development All DA files are to include Director – Environmental Ongoing and often forms Ongoing. stakeholders on assessment process that consideration of Council’s Services part of the legislative development proposals that consults with Aboriginal Aboriginal Consultation requirements for DA have potential to impact on stakeholders prior to Policy to determine processes. known cultural heritage determination. whether consultation with sites Aboriginal stakeholders is required.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: L2. Find ways to tell Cowra’s story 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L2.1 Develop and L2.1.a Completed in 2014/2015. implement celebratory program for the 70th anniversary of the POW Breakout in 2014 L2.2 Develop and L2.2.a Program developed in Events delivered within Director – Corporate Program currently being 2016 Festival had additional implement celebratory conjunction with Festival budget to the satisfaction of Services developed in conjunction activities, overwhelming program for the Annual Committee all participants with new arrangements support from Tongan High Festival of International involving General Commission and Understanding Manager’s Department, community, strong local Community Projects and participation. Preparations new position of Festival are underway for 2017 Coordinator. Festival.

30 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L2.4 Investigate L2.4.a Cultural Council gauge the Consultation undertaken to Director – Corporate No action to date. Council continues to establishment of a Cowra level of community interest determine support and if Services Consideration being given research and investigate the Museum in establishing a Museum in significant support is evident to including a question on general need for a museum/s Cowra. core group established to this issue in the shire-wide in Cowra. Museums and pursue options. survey planed for the Galleries NSW second half of 2015/2016. representative conducted forum in June to explore various options.

L2.5 Continue to develop L2.5.a Maintain Saburo Nagakura Park maintained to current Director – Infrastructure & Ongoing Park maintained to high the Cowra/Japan Park. high standard Operations No issues, park kept to standard. relationship and to promote high standard. Cowra as a centre of L2.5.b Maintain relationship with Council responds to any General Manager Delegation visited in No delegations visited international understanding Nagakura Foundation as requests for assistance with October 2015. during this time. and friendship appropriate. delegations visiting the park.

L2.5.c Maintain relationship with Seek indication from Joetsu General Manager A number of Advanced planning is Joetsu Council. Council as to whether communications have been underway for a proposed continuation of the staff sent to Joetsu seeking visit to Cowra by the exchange is supported. advice on continuing the Mayor of Joetsu in August Consider the options to program. No response 2016. Meetings are planned foster relations. has been received to date to discuss the exchange and liaison will continue program. with a view to eliciting a response in the near future.

L2.5.d Continue programming Next stage of works Director - Infrastructure & Year 4 works completed Stage completed as implementation of modified undertaken as part of Operations for 2015/2016. required. design for Cherry Tree winter works program. Completion of 5 year Avenue ie establishing Upgrade to be completed in Program 2017 groves of Cherry/ Crab 2016. Apple Trees linked by large ornamental trees.

L2.6 Maintain a heritage L2.6.a Employ a properly qualified Heritage advisor engaged Director – Environmental Ongoing – David Scobie is Ongoing. advisory service and experienced heritage and available to respond to Services the current Heritage advisor to provide advisory heritage issues/queries. Advisor. services to Council and the wider community. Review Cowra’s Heritage Inventory. L2.7 Ensure new L2.7.a Maintain a development Where appropriate all DA Director – Environmental Ongoing – forms part of Ongoing. development proposals do assessment system that files are to include Services the DA process. not impact on heritage sites properly assesses heritage assessment criteria that sites and potential requires consideration of threatening proposals. heritage matters.

31 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L2.8 Support Peace Bell L2.8.a Work with Peace Bell Program developed and General Manager Promote World Peace Day Promote World Peace Day Committee in celebrating Committee to develop event conducted events through various events through various World Peace Day program. successfully. publications, create and publications, create and distribute media releases distribute media releases for for Youth Ambassador Youth Ambassador program. program.

Cowra Youth Council and Community Projects hosted an annual Youth Forum for World Peace Day in September 2015. This is coordinated in conjunction with Rotary and Lions Youth Peace Awards.

L2.9 Develop the Cowra L2.9.a Pursue funding and Works completed as funds Director – Infrastructure & Works carried out as Peace Precinct with a focus implement when adequate become available. Operations programmed. on the Aboriginal, European resources are available the and Military history following initiatives from the Power supply options still Peace Precinct Masterplan: being pursued. Investigations into providing power to the POW car Toilet block facility grant DA submitted. park site funded and DA prepared. Investigations into the Potable water supply provision of a toilet block Potable water connection investigated and included as facility at the POW site for drinking fountain and part of toilet block works. Investigation into the supply toilet block is in close of potable water to the site proximity to existing Ongoing improvements into network . the Electrical Switch Room ruins (maintaining what’s Cattle grid has been there) removed and roadway Further continuation of the reinstated. cycle ways onsite, including linkages from the existing to the Japanese Gardens car park Further works on the Completed. interpretation of the POW campsite, including going into C and D compounds Removal of cattle grid from existing roadway and restoration back to roadway

32 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Six Month Twelve Month Program 1 Year Operational Plan 2015-2016 Review Review 2013-2017 Program Link Action Performance Measure Responsibility L2.10 Support Program for L2.10.a Assist relevant stakeholders Program developed. General Manager No events planned at this No events planned at this 100 year anniversary of in development of program. stage. No approaches stage. No approaches have significant WW1 and have been received. been received. Centenary of Service events

L2.11 Review Memorials, L2.11.a Cultural Council to review Review database and Director- Corporate Cultural Council reviewing Cultural Council reviewing Cultural Treasures and adequacy of databases and update. Services this record. this record. Historic items databases update as required.

L2.12 Commence process L2.12.a Establish Committee and Committee established, General Manager Rewrite included in Expressions of Interest have to rewrite Cowra on the terms of reference to terms of reference Cultural Plan for been called for. Lachlan commence task. completed and submitted to 2015/2016. Council for funding in 2015/16.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: L.3. Continue to develop our leisure and cultural facilities, infrastructure and natural environment 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L3.1 Maintain and improve L3.1.a Conduct a “Satisfaction Survey conducted and General Manager Organised and compiled Feedback on use and the current high standard of Level” survey of users. information collated for surveys on Cowra Aquatic satisfaction with Aquatic the Cowra Aquatic Centre future benchmarking. Centre users. Centre included in shire- wide survey with high level of positives.

L3.1.b Investigate additional Investigations undertaken Director – Infrastructure & Yet to commence. Splash Park, other facilities to expand the use and proposals reported to Operations attractions and of the aquatic centre in the Council for endorsement infrastructure audit have current opening season. and consideration of been investigated and there funding. will be a report to Council in the near future. L3.2 Provide recreation L3.2.a Maintain parks and gardens Recreational playgrounds Director – Infrastructure & Ongoing, no complaints Parks & Gardens kept to opportunities through the to a high standard for use of and reserves (including Operations from users. high standard with no user provision of attractive parks all recreation users. facilities) are maintained to Parks and gardens kept to complaints. and gardens a high standard. high standard.

Playground compliance checks completed quarterly.

33 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L3.2.b Investigate community Gauge level of community Director – Infrastructure & Section 355 Committee Report and presentation to support and feasibility of support, research options Operations formed and progressing with Council, July 2016 establishing an Adventure for establishment of a concepts. Playground. Playground and submit a report to Council detailing findings and recommendation on whether to proceed. L3.3 Provide good quality L3.3.a Maintain Council sporting Sporting fields maintained to Director – Infrastructure & Ongoing Council working closely facilities to meet the needs fields for all sporting required standards. Operations No complaints from users, with Sport and Recreation of sporting clubs and users associations in Cowra. required standards Committee. maintained.

L3.3.b Liaise with Cowra Sport All users are catered for Director – Infrastructure & Ongoing Parks and Gardens kept to and Recreational Council to with high standard fields Operations No complaints from users high standard with no user ensure all sports are provided. All works carried and high standard achieved. complaints. catered for. out as required by sporting groups. Cowra Sport & Recreation Final plan presented to Planning undertaken in Council 2016. November 2015 with local sporting bodies and recreational groups. Facilities plan to be included in final Plan.

L3.3.c Review and update five year Plan reviewed, updated and Director – Corporate Cowra Sport & Recreation Final plan presented to Sport and Recreation Plan. adopted by Council. Services Planning undertaken in Council 2016. November 2015 with local sporting bodies and Sport & Recreation Plan recreational groups. 2016-2020 adopted May Facilities plan to be included 2016. in final Plan. L3.3.d Support within available Assist in sourcing grant Director – Corporate Council has responded to Council continues to resources the Showground funds for improvements. Services requests for funding. respond to requests for Trust, village halls and other funding. community owned and Consider requests for operated facilities. financial assistance. L3.4 Promote and support L3.4.a Develop, present and Two year forward Director – Corporate Exhibitions (June – Exhibitions (February – June cultural and artistic activities promote a diverse program exhibition program Services December) presented to 2016 ) within the community of high quality exhibitions, developed and date in 2015 including Six high quality exhibitions public events and workshop implemented. Contemporary Gallipoli, were presented including activities at the Cowra Stars + Stripes – Selling An American Dream: Regional Art Gallery. Use established Council contemporary art from Australia’s Greek Cafes (4 publications and media to America, The Lachlan Valley weeks) which was well promote. Biennial Art Awards, and a attended at the opening by “Living Treasures” members of the local Greek exhibition - Lola Greeno: community; a survey of Art Cultural Jewels. Express student works from

34 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility Public events consisted of the Wilkins Collection five openings with guest (NSW Dept of Education) in speakers. conjunction with a solo Grant received ARTS NSW exhibition WILD (5 weeks) 2016 $20,000 by regional artist Nic Mason Other activities include (winner of the 2015 UpstART showcasing young Regional Art Award); the artists in the region. 2016 Calleen Art Award 2016 Calleen Art Award (7weeks) (including Preparations. selection of 47 finalists from Artist-in-residency project 279 entries+ judging of the with textile artist Barbara winner); and Warakurna: All Schey and holiday the stories got into our workshops for children. minds and eyes coinciding Distribution of promotional with NAIDOC week in July material and monthly listings (5 weeks). to local and nation media. Public events Regional handmade Six openings with guest products continue to be speakers. stocked in the Gallery Shop AFTERDARK - a curated to support local artists photography projection The Friends of the Gallery event, presented in the donated $3,000 to purchase Cowra Civic Centre a major ceramic work by auditorium. local artist Greg Daly for Supported and assisted the the collection. Cowra Art Group with the display of their knitted public art project – Yarn a Web (May – July 2016). Workshops Summer Art workshops for Children (January) – 3 tutors with 27 children attending. Children’s School holiday workshops with artist Nic Mason (April) – With 17 children attending. Other activities Production & distribution of media/promotional material and monthly listings to local and national tourism and art publications. Regional handmade products continue to be stocked in the Gallery Shop to support local artists

35 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility Quarterly get-togethers by Gallery staff with FOH volunteers Provided policy objectives for Sculpture Park master plan.

New Acquisitions Two artist donations received Friends of the Gallery purchase a work from the Calleen Art Award Five works donated through the Federal Government’s Cultural Gifts program 2016 Calleen Art Award winner The Beryl Rudd Bequest donated funding to purchase two works from the 2016 Calleen Art Award.

L3.4.b Develop educational Develop and implement Director – Corporate Coordinating school visits as Coordinated school visits as activities with local schools educational program. Services required; forwarding required; forwarding and the Cowra Regional Art program information to all ongoing program Gallery. schools in the region; information to all schools in presenting floor talks to the region; presenting floor groups as required; and talks to groups as required. liaised with 8 regional Special Schools event schools in regard to the Public Talk (April) - the presentation of 2015 Gallery invited a guest UpstART involving 130 speaker from the Dept of students in years 10, 11 and Education to speak about 12. the Wilkins Collection display and Art Express with Year 11 students. Three schools participated (Cowra High, St Raphael’s, High) with a total of 60 students and 7 teachers in attendance.

36 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L3.5 Develop the Lachlan L3.5.a Pursue funding and Works completed as funds Director – Infrastructure & Funding applied for as Funding not successful. River Precinct as a major implement when adequate become available. Operations required. Investigation still focal point for passive resources are available the required on re-use options recreation following initiatives from the for disused Railway line. Lachlan River Precinct Masterplan: River Park to Edgell Park link being investigated at Extending the cycleway on present in conjunction with the Eastern bank, including low level bridge report. past the front of the Cowra Now that footpath has been Van Park completed under grant Investigations into providing funding, extra work for rest better pedestrian access areas and Aboriginal Motifs across The Lachlan River can now be pursued. Providing the Aboriginal Motifs on the Erambie Link In regards to the Bridge project Pylons, issues have been Provision of rest areas along addressed and quotes being this section of path/ obtained for refurbishment cycleway (Erambie Link) of existing painted pylons Copyright and ownership Provision of Gross Pollutant and a separate contract for has been established. Traps on the stormwater unpainted pylons will be Consultations with outlets pursued. stakeholder groups have Investigations of reuse taken place to prepare an options for the disused Expression of Interest for Railway line adjacent to Col the refurbishment of murals. Newton Park (Project is subject to grant Lachlan River Bridge pylon funding to be followed by an murals, upgrade/ extension EOI process). (budget allocation $50,000)

L3.6 Develop the Cowra L3.6.a Pursue funding and Works completed as funds Director – Infrastructure & Funding approved. Design Peace Precinct as a major implement when adequate become available. Operations work and DA preparation is focal point for passive resources are available the well under way for recreation and multicultural following initiatives from the submission in January 2016. awareness Peace Precinct Masterplan: Investigations into providing Power supply options still power to the POW car being pursued. park site Investigations into the Toilet block facility grant provision of a toilet block funded and DA prepared. facility at the POW site DA submitted. Investigation into the supply Potable water connection of potable water to the site for drinking fountain and Potable water supply Ongoing improvements into toilet block is in close investigated and included as the Electrical Switch Room proximity to existing part of toilet block works. ruins (maintaining what’s network . there)

37 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility Further continuation of the Cattle grid has been cycle ways onsite, including removed and roadway linkages from the existing to reinstated. the Japanese Gardens car park Further works on the interpretation of the POW To be reviewed in campsite, including going 2016/2017. into C and D compounds Removal of cattle grid from existing roadway and restoration back to Completed. roadway (budget allocation $50,000)

L3.6.b Continue to investigate Masterplan completed, Director Corporate Discussions held with Sculpture Park Plan feasibility of establishing a Policy and Procedures on Services stakeholders. Director - presented to Council and Sculpture Park in the Peace eligibility of sculptures, Corporate Services and placed on Public Exhibition. Precinct. ownership and ongoing Manager – Services (budget allocation $20,000) maintenance of works preparing draft report to submitted to Council. Council. L.3.6.c Continue to maintain and Sakura Avenue maintained Director – Infrastructure & Year 4 works completed for Final works expected to be enhance Sakura Avenue to high standard, trees Operations 2015/2016. completed in 2017. (Cherry Tree Avenue). replaced and relocated as required.

L.3.6.d In consultation with the Consultation undertaken Director – Infrastructure & Initial discussion held with Meeting held with board of Cowra Japanese Garden and and costed improvement Operations Manager to plan and cost Japanese Gardens to Cultural Centre Limited and plan presented to Council improvements. determine requirements. other affected stakeholders for consideration of funding undertake a review of the in 2016/2017. pedestrian and vehicular movement of the Garden carpark and develop and cost an improvement plan. L3.7 Develop Cowra CBD L3.7.a Undertake the following Design completed on time, Director – Infrastructure & Concept plans placed on Public Exhibition completed. as a major shopping location works/designs in within budget and with Operations public exhibition in Detailed data to extend to and a place for social accordance with the appropriate consultation December 2015 to February bottom block (Macquarie to interaction and investment adopted CBD Masterplan as with business operators and 2016. Lachlan). amended. community. Completion of the design Squire Park Plans completed plans for Kendal Street and costed after footpath treatment and consultation with street furniture. community. Complete design for refurbishment of Squire Park.

38 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L3.8 Develop the Cowra L3.8.a Develop a Masterplan for Masterplan completed and Director – Corporate Workshop with Councillors Master plan presentation to Civic Square Cultural the Civic Square. presented to Council. Services in March 2016 to develop Information meeting was Precinct (budget allocation $30,000) parameters for Masterplan. delayed and will be presented 2016/2017.

L3.9 Maintain and improve L3.9.a Implement Building Asset Works undertaken Director – Infrastructure & Draft AMP prepared. Building AMP adopted at the Cowra Civic Centre as Management Plan. according to improvement Operations Workshops held with June Council meeting. Cowra’s principal program in Building Asset Councillors. Audio-visual equipment performance venue Management Plan. Plan to be revamped and upgrade completed for presented to Council in Theatrette in July 15 to March 2016. support community cinema operations.

L3.10 Maintain and improve L3.10.a Implement Building Asset Works undertaken Director – Infrastructure & Draft AMP prepared. Building AMP adopted. facilities at the Cowra Management Plan. according to improvement Operations Workshops held with Library program in Building Asset Councillors. Management Plan. Plan to be revamped and presented to Council in March 2016.

L3.11 Maintain and improve L3.11.a Implement Building Asset Works undertaken Director – Infrastructure & Draft AMP prepared. Building AMP adopted. the Cowra Regional Art Management Plan. according to improvement Operations Workshops held with Gallery as a major cultural program in Building Asset Councillors. feature of the Cowra Management Plan. Plan to be revamped and community presented to Council in March 2016.

L3.12 Maintain and operate L3.12.a Engage new Lessee. New Lessee adhering to Director – Infrastructure & Council resolved not to Temporary Manager’s the Cowra Caravan Park to conditions of lease. Operations appoint a lessee and to Contract extended to 30 its current high standard appoint temporary managers June 2017. to manage the facility for a maximum of 12 months.

L4.1 Work with L4.1.a Contact NSW and Contact made and listings General Manager Attend quarterly EDM Attend quarterly EDM government departments Commonwealth prepared and media Forums where updates are Forums where updates are and other agencies to Government to ascertain produced. obtained on a range of obtained on a range of promote and support their range of sponsored sponsored government sponsored government volunteer involvement in volunteer programs. programmes. These are programmes. These are community activities then relayed to the Business then relayed to the Business Chamber. Chamber and other relevant business concerns.

L4.1.b Contact local volunteers Contact made and listings General Manager Fund-raising and services of Fund-raising and services of groups to ascertain level of prepared and media volunteer groups promoted volunteer groups promoted activities and projects. produced. via Noticeboard. via Noticeboard.

39 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L4.2 Coordinate endorsed L4.2.a Plan and administer civic Events such as Australia Day Director – Corporate Annual program of civic Coordinated Australia Day civic events that are events determined by and NAIDOC administered Services events coordinated including Service and Awards, 6 celebrated by our Council. and co-ordinated to agreed Australia Day, NAIDOC Youth Week events, 1 community and recognise level and satisfaction of the Week, Seniors Week, Seniors Week event and and support our residents community. Youth Week. Flag Raising Ceremony for NAIDOC Week. L4.3 Review and update the L4.3.a Completed in 2014/2015. Cowra Cultural Plan

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: L5. Continue to develop our unique country lifestyle 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L5.1 Promote Cowra Shire L5.1.a Identify appropriate forums, Attendance at appropriate General Manager Worked in collaboration Attended training provided as a desirable place to live mediums and strategies to forums, deliver marketing with RDA to draft content by RDA on the Murray- and work participate in. strategies within available for the “Invest Central Darling Basin Regional resources. West” website. The web Economic Diversification portal was launched earlier Program. this year and can be found on the following link - Invest Attended meetings with Cowra . CENTROC on the co- design of a regional data Attended the Building project and provided input Regional Australia Summit in for the drafting of a Dubbo to network with renewable energy NSW shires, local innovation project. governments and business leaders. Attended the Hilltops Regional Export Summit to explore export opportunities international airfreight ex Canberra might hold for Cowra businesses.

Participated in the Enabling Regional Adaptation workshop hosted by OE & H in Dubbo.

Attended the Central West Business Summit in Parkes on behalf of Council.

40 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 2013- 1 Year Operational Plan 2015-2016 Six Month Review Review 2017 Program Link Action Performance Measure Responsibility L5.2 Promote Cowra Shire L5.2.a Participate in activities in Annual contribution General Manager Provide range of “good Provide range of “good as a desirable place to visit conjunction with Cowra provided to Cowra Tourism news” stories to news” stories to Tourism. as the lead agency for metropolitan and interstate metropolitan and interstate promoting visitation to media with media briefings media with media briefings Cowra. that promote Cowra as a that promote Cowra as a desirable place to live. desirable place to live. Promoted Cowra Tourism Promoted Cowra Tourism via media releases on major via media releases on major tourism events and articles tourism events and articles in Cowra Quarterly and in Cowra Quarterly and Noticeboard. Noticeboard.

L5.2.b Provide financial support to Annual contribution General Manager Funding provided in Funding provided in Cowra Tourism provided. accordance with budget. accordance with budget. Corporation. (budget allocation $239,031 + Event Officer $39,739)

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: L6. Recognise and grow the talent in our community 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility L6.1 Support Australia Day L6.1.a Work with Australia Day Events are well planned and Director – Corporate 2016 Australia Day Awards Australia Day Awards and Citizen of the Year and Committee and administer executed to satisfaction of Services program received over 20 School’s Literary related awards events for Australia Day. committee and community. nominations. Ceremony and Competition Awards activities coordinated. presented at the Official Promotion prepared for media. Service. Rotary and Inner Wheel assisted with catering. Service was very well-attended.

L6.2 Maintain donation L6.2.a Respond to requests for Request are processed in Director – Corporate A number of requests have been Requests and reports policy to support donations in accordance accordance with policy Services processed, submitted to Council submitted to Council in community development with policy. guidelines and submitted to and approved. accordance with policy on a Council and paid within regular basis. allocated budget for year.

41 2015-2016 Annual Report Cowra Shire Council Governance (Strategic Theme 4) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: G.1 Develop and implement a Council community communication and consultation strategy 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G1.1 Maintain and improve G1.1.a Hold village community meetings. At least one meeting held General Manager To be organised for the first Village community meetings appropriate mechanisms to in each village annually. half of 2016. held during first half of 2016. consult with key community Responses and follow up groups and stakeholders activities are ongoing.

G1.1.b Provide online feedback opportunities for Website to continue to Director – Corporate Website contains “contact us” Website contains “contact us” key Council initiatives. cater for online feedback. Services web form. Council has also web form. Council has subscribed to a Gold level produced an online survey SurveyMonkey account used about our website. The results to design regular online are being used to determine surveys for community changes in current site design. members to complete.

G1.2 Provide an interactive up G1.2.a Monitor and update website on regular Website provides Director – Corporate This is an ongoing task which This is an ongoing task which to date website that services basis. necessary information for Services is performed daily. is performed daily. 12 month community needs normal range of enquiries trial on product called “Site by public and Council. Improve”. This site monitoring software will produce reports on “dead” links, spelling mistakes etc.

G1.3 Maintain and improve G1.3.a Issue regular media releases informing the Press release issued General Manager Issued a range of timely, Issued a range of timely, Council's corporate community of Council decisions, activities outlining key items from relevant and topical media relevant and topical media communication activities and programs. each Council meeting releases promoting the good releases promoting the good within one week of each work and responsibilities of work and responsibilities of Council meeting. Council. Council.

G1.3.b Maintain Weekly Noticeboard production. Noticeboard produced General Manager Created and delivered through Created and delivered through every week and distributed a range of media on a timely a range of media on a timely to appropriate media basis. basis. outlets.

G1.3.c Maintain production of Cowra Quarterly. Cowra Quarterly General Manager Written, designed and Written, designed and produced each quarter. delivered on a timely basis. delivered on a timely basis.

G1.3.d Formulate and implement a Consultant engaged, General Manager Not yet commenced. Communications Strategy in Communications Strategy for Cowra Shire. strategy developed in advanced stages and planned conjunction with key to be presented to Council in stakeholders and endorsed July/August 2016. by Council.

G1.3.e Consider implementation of available social Investigation undertaken General Manager Introduced, monitored and Introduced, monitored and media platforms. and new platforms updated Council’s Facebook updated Council’s Facebook implemented if considered and Twitter accounts on a and Twitter accounts on a appropriate and cost range of topical and relevant range of topical and relevant effective. issues. issues.

42 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G1.4 Improve communication G1.4.a Issue regular media releases informing the Press release issued General Manager Kept Cowra Public and Kept Cowra Public and of Council information and community of Council decisions and where outlining key items from beyond informed of the beyond informed of the decisions appropriate the rationale for those each Council meeting relevant issues and decisions relevant issues and decisions decisions. within one week of each impacting on Cowra Council. impacting on Cowra Council. Council meeting. G1.4.b Persons with matters requiring Council Relevant parties advised of General Manager In majority of instances, letters In majority of instances, letters determination are advised of Council’s decisions within one week advising Council determination advising Council determination decision in a timely manner. of Council meeting. issued in appropriate issued in appropriate timeframe. timeframe.

G1.4.c Council resolutions acted upon in a timely Monthly report on General Manager Resolution Action List Resolution Action List updated manner. progress in implementing updated and distributed to and distributed to Councillors Council decisions is Councillors each month. each month. provided.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: G2. Develop a planning framework that responds to changing community needs 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G2.1 Provide responsible G2.1.a Maintain long term financial sustainability Advice via detailed reports Director – Corporate Long Term Financial Plan Long Term Financial Plan financial management by providing key financial information and prepared and provided to Services submitted and approved in completed for second year advice to Council. Council. relation to Operational Plan forming key component of and Fit for the Future. Operational plan which was Quarterly reports submitted adopted at June Council to Council together with meeting. regular monitoring of budgets between reporting periods.

G2.2 Continue to develop G2.2.a Investigate zoning changes. Liaise with Department of Director – Environmental Discussions have been held This will be incorporated into land-use planning policies to Planning to investigate Services with Council and the DoP - the LEP review as some of guide growth and changes in zoning in areas of Report to Council February the standard clauses have development in the Cowra business and/or industry. which will discuss process been changed by the DoP Shire and possible budget which address some original Provide support for the implications concerns. Cowra Building Construction Group as required. Continue Support for the CBCG is to provide ongoing training ongoing – training has been and information as required. held for a number of things including DA processes Review departmental policies. The ongoing changes to Finalise the Electronic legislation requires regular Housing Code program with reviews of Council policies

43 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility Department of Planning. etc as required and part of the constant review process of Council

EHC has been finalised.

G2.2.b Review and update s94 and s94A Plan reviews completed and Director -Environmental Review has been completed – Completed. Developer Contribution Plans. adopted by Council. Services Report February adoption

G2.2.c Building services – Council provide a Continue to provide a PCA Director – Environmental This is an ongoing service Ongoing. Principal Certifying Authority (PCA) service in Cowra. Services provided. service.

G2.3 Develop a Council G2.3.a Review and adopt Workforce Plan Workforce Plan reviewed by Director – Corporate Workforce Plan currently Workforce Plan not required workforce that supports our detailing threats and opportunities for the December 2015. Services being reviewed. to be updated until 2016/17. corporate values and meets Council workforce. the organisations present and future skill needs G2.3.b Provide skills and professional Council implements “On- Director – Corporate Training Ongoing. Training Ongoing. development training for staff. line” training for core Services Delivery methods including Delivery methods including employee compliance training On-Line delivery. On-Line delivery. needs, are current with a six monthly revision program in place ensuring that all staff complete the relevant modules in the implementation period and a bi yearly revision program is implemented.

G2.4 Develop a Council wide G2.4.a Review and adopt Enterprise Risk Enterprise Risk Management Director – Corporate Enterprise Risk Management Risk Management Action Plan Enterprise Risk management Management Plan. Plan review by Audit Services Plan adopted in 2015 and presented each Audit Plan and develop and Committee and adopted by reviewed by Audit Committee meeting (3 times implement supporting Council by 31 July 2015. Committee three times per a year) with amendments. processes to ensure ongoing annum. integration of risk management principles into Council operations G2.5 Review and implement G2.5.a Review the Cowra Shire Development Review the Development Director – Environmental A review will be undertaken LEP review will occur Council’s Planning Control Plan. Control Plan with changes, if Services in the second half of 2016. July/August – this has been Instruments any, endorsed by Council. delayed due to some work being undertaken by Infrastructure in relation to land classification. DCP review likely to occur September 2016.

44 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G2.6.a Review/maintain Transport Asset Adopted Transport Asset Director – Infrastructure & Maintenance activities Unable to deliver on G2.6 Undertake asset Management Plan. Management Plan Operations conducted in accordance Transport AMP targets management planning to implemented and with plan. within allocated budgets. ensure that Council’s continuously updated. infrastructure is maintained and improved G2.6.b Review/maintain Water Asset Adopted Water Asset Director – Infrastructure & Maintenance activities Water AMP continually Management Plan. Management Plan Operations conducted in accordance updated and work within implemented and with plan. Strategic Business Plan continuously updated. financials.

G2.6.c Review/maintain Wastewater Asset Adopted Wastewater Asset Director – Infrastructure & Maintenance activities Wastewater AMP continually Management Plan. Management Plan Operations conducted in accordance updated and work within implemented and with plan. Strategic Business Plan continuously updated. financials.

G2.6.d Review/maintain Building Asset Building Asset Management Director – Infrastructure & Draft AMP prepared. Building AMP adopted by Management Plan. Plan adopted by Council Operations Workshops held with Council in June 2016. implemented and updated. Councillors. Plan to be revamped and presented to Council in March 2016.

G2.6.e Review/maintain Stormwater Asset Stormwater Asset Director – Infrastructure & Draft AMP prepared, not yet Stormwater AMP to be Management Plan. Management Plan adopted by Operations presented to Council. presented in 2016/17. Council implemented and Reviewing proposed works in updated. conjunction with OEH grant.

G2.6.f Develop “Other Asset” Asset “Other Asset” Management Director – Infrastructure & Draft preparation Asset AMP to be drafted in Management Plan incorporating Plan adopted. Operations commenced. Caravan Park 2016/17. improvement programs for capital improvement plan Saleyards approved by Council. Van Park Improvement Plan Caravan Park on track for completion. Airport Revisit in 2016/17. Materials Recycling Facility. Saleyards improvements completed include; new lighting, additional ramps and fencing.

G2.7 Develop strategies to G2.7.a Implement recommendations from Level Investigate feasibility of Director – Infrastructure & External review offered by Review to be followed up. position Cowra for a low 2 energy audits installing solar panels on Operations OEH as Council is a carbon emission environment Council office building and sustainable advantage Issues with office building and Civic Centre. member. Civic Centre roof leaking after heavy rain. Solar panels Feasibility report presented will not be pursued until roof to Council. repair/renewal is considered.

45 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G2.7.b Investigate utilising detention basins as Investigate options of Director – Environmental Currently looking for funding Ongoing research. carbon sinks retrofitting an existing Services with the LLS. Research (budget allocation $50,000) detention basin as a continuing. wetland/landscaped area in coordination with Local Land Services – Water Sensitive Urban design principles.

G2.7.c Provide support to CLEAN Inc Continue to work with and Director – Environmental Ongoing. Ongoing. (budget allocation $80,000) support the CLEAN Cowra Services Report due February to vary Inc the milestones and payment of money.

G2.8 Maintain a current Equal G2.8.a Equal Employment Opportunity (EEO) Provide EEO and AD training Director – Corporate Council operates in Indoor staff have completed Employment Opportunity and Anti Discrimination (AD) Plan. to new and existing staff as Services accordance with its adopted online training for EEO and Plan required. policies. AD. Training for outdoor staff to be arranged. All supervisors and managers are conversant with EEO principles.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: G3. Strengthen partnerships with government and other agencies 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G3.1 Liaise with relevant G3.1.a Respond to approaches from the Relevant ministers are General Manager Responded to local and Advocated improved government and other community to address shortfalls in approached advocating on federal members in relation communication between agencies to provide commonwealth or state government behalf of residents. to community concerns on council and NBN’s planned appropriate levels of service delivery to residents. the availability of the NBN in rollout in Cowra Township. resources and assistance to Cowra and surrounds, as well NBN has also been engaged shire communities as delays in actions promised and successfully lobbied for under the mobile phone black the installation of FTTP spot programme. Ministers infrastructure at our new 21 have been lobbied and replies lot airport subdivision. to community members sent. G3.2 Work with the NSW G3.2.a Undertake roadside slashing. Hazard reduction completed Director – Infrastructure & Works carried out. Slashing carried out as Rural Fire Service to prevent according to budget and Operations Additional tractor hired to necessary, except for fire and control bushfires claimed for. assist with workload. bans.

G3.2.b Support Rural Fire Service (RFS) with Project financed with funding Director – Infrastructure & Funding allocated for RFS RFS projects paid and building developments. recovered from Rural Fire Operations shed upgrades at Billimari and reimbursed accordingly. Service. Wyangala, carryover modifications at Barryrennie, Merriganowry, Porters Mt, Mt McDonald, Gooloogong & Rivers continuing.

46 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G3.2.c Support activities of the Bush Fire Attendance at and Director – Infrastructure & Meeting attended by Cr Required meetings attended Management Committee. participation in meetings. Operations Wright, October 2015. by Cr Wright.

G3.2.d Support activities of the Rural Fire Service Attendance at and Director – Infrastructure & Meetings attended by Cr Required meetings attended Zone Liaison Committee. participation in meetings. Operations Wright, Manager – Technical by Cr Wright, and Manager – Services 13/8 & 17/11 Technical Services.

G3.3 Continue to develop G3.3.a Mayor, Councillors and senior staff meet Council representatives meet General Manager No visits were held during No visits were held during Council’s relationship with with Kogarah representatives to share at least annually with Mayor, this period. this period. other local government ideas and discuss projects of mutual Councillors and senior staff bodies benefit. of Kogarah City Council. (budget allocation $5,000)

G3.3.b Maintain relationship with Centroc. Attend and participate in all General Manager Mayor and General Manager Mayor and General Manager Centroc meetings and attended Board meetings in attended Board meetings in appropriate activities. July and November 2015. July and November 2015. General Manager attended General Manager attended General Manager Advisory General Manager Advisory Committee (GMAC) Committee (GMAC) meetings in July and meetings in July and November 2015. November 2015. Director Corporate Services, Director Corporate Services, Director Infrastructure and Director Infrastructure and Operations, Manager Operations, Manager Technical Services, Human Technical Services, Human Resources Manager and Resources Manager and other staff attended their other staff attended their relevant Centroc based relevant Centroc based group meetings bringing group meetings bringing relevant issues back to the relevant issues back to the General Manager or to General Manager or to GMAC. GMAC.

G3.3.c Maintain relationship with Joetsu Council. Seek indication from Joetsu General Manager Joetsu City Council is A visit is planned led by the Council as to whether currently reviewing its Mayor of Joetsu to Cowra in continuation of the staff position in relation to the August 2016. exchange program is program. supported. Consider other options to foster relations.

G3.4 Council undertake G3.4.a Participate in Local Government Reform Council position determined General Manager Cowra was determined to be Cowra was determined to be appropriate research and process. and submission(s) lodged as Fit For The Future by the Fit For The Future by the investigation to respond to required. NSW State Government. NSW State Government. government inquiries and initiatives to consider reform G3.4.b Participate in the Centroc Joint Attend meetings, workshops General Manager Mayor and General manager Mayor and General manager in the local government Organisation pilot. and actively participate in have attended meetings and have attended meetings and industry providing feedback on the provided feedback for provided feedback for most appropriate model for a participating Councils. participating Councils. Joint Organisation.

47 2015-2016 Annual Report Cowra Shire Council

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: G4. Maximise funding opportunities 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G4.1 Maintain and improve G4.1.a Council undertakes debt collection Monthly report provided to Director – Corporate Council’s Debt Collection Council’s Debt Collection Council’s revenue raising and procedures as per policy. Council. Services procedures are providing solid procedures continue to collection so as to resource results following on from reduce overdue rates to the Delivery Program significant reductions in significantly lower levels than outstanding rates from previous years. 2014/15.

G4.2 Capitalise on grant G4.2.a Respond to available grant funding Relevant funding opportunities General Manager Six grant applications totalling 20 grant applications totalling funding opportunities for opportunities with projects that are that Council is eligible for are $1,286,438 submitted on behalf $3,204,004.45 submitted on Council endorsed in Council’s planning capitalised on and a submission of Cowra Council. behalf of Cowra Council framework. lodged. An additional five applications during the financial year. An totalling $22,893.09 submitted additional seven applications on behalf of local community totalling $143,686.45 groups. submitted on behalf of local community groups. Funds secured: Council $105,006.00 (ex-GST), Community groups $4,956.45 (ex-GST). Ten applications pending. G4.3 Work with community G4.3.a Undertake bi-annual workshop to assist Workshop conducted. General Manager Grant funding workshops Grant funding workshops groups to locate funding community groups in sourcing funding conducted 13 October – One presented in Cowra, Blayney opportunities consistent with opportunities and developing 90 minute presentation held in and . the Community Strategic Plan submissions. Council chambers - 18 participants in attendance. Workshop also presented at NSW Country Pool Workshops have been both Manager’s Conference – attended and delivered in Forbes. Blayney and Cowra to provide community members and groups with insight into developing and drafting successful funding applications.

G4.3.b Work towards progressing the final Review urban design tenders Director – Environmental Ongoing work with DA to be lodged shortly and stage of the Valley View Estate. submitted for the final stage of Services consultants. will be assessed by an the Valley View Estate and independent consultant. report to Council.

48 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: G5. Develop leadership skills across the community 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G5.1 Work with and support G5.1.a Support the Saleyards committee in Council provide appropriate Director – Infrastructure & Ongoing. Strong stock figures continue Council 355 Committees fulfilling its delegated role for Council. administrative support. Operations Attendance held at all to provide good through puts Saleyard Committee at the yards. Requests requiring Council meetings with Agenda and determination referred to minutes undertaken as Saleyard improvements Council meeting in a timely required and resolutions completed include: new manner. followed through. lighting, additional ramps and Minutes from all 355 fencing committee meetings provided to Council in a timely manner.

G5.1.b Support the Cowra Youth Council in Council provide appropriate Director – Corporate Cowra Youth Council Cowra Youth Council fulfilling its delegated role for Council. administrative support within Services meetings held on monthly monthly meetings attended. available resources. basis to include planning for Six monthly report presented annual program of activities to Council in June. Events Requests requiring Council such as Youth Week, movie supported include Youth determination referred to screenings, community Week, Colour Me Happy Council meeting in a timely events. Run, Festival Parade and manner. Seniors Week Movie afternoon. Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.c Support the Friends of the Cowra Council provide appropriate Director – Corporate Monthly meeting minutes are Monthly meeting minutes are Regional Art Gallery in fulfilling its administrative support within Services forwarded to corporate forwarded to corporate delegated role for Council. available resources. services and provided to services and provided to Council on a regular and Council on a regular and Requests requiring Council timely basis. timely basis. determination referred to Council meeting in a timely Administration support as Administration support as manner. required and assistance with required including the development and printing coordination of membership Minutes from all 355 of a Friends membership renewals (June/July), advise re committee meetings provided letter and newsletter purchase of artworks and to Council in a timely undertaken as a basis of the assistance with the manner. Gallery activities. development and printing of a Friends membership letter and newsletter undertaken as a basis of the Gallery activities.

49 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G5.1.d Support the Noonbinna Village Council provide appropriate General Manager Due to falling numbers the Completed. committee in fulfilling its delegated role administrative support within Committee has been for Council. available resources. disbanded by the Council.

Requests requiring Council determination referred to Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.e Support the Natural Resource Council provide appropriate Director – Environmental Ongoing support provided. Ongoing. Management Advisory Committee in administrative support within Services fulfilling its delegated role for Council. available resources.

Requests requiring Council determination referred to Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.f Support the Tidy Towns and Urban Council provide appropriate Director – Infrastructure & Ongoing. Ongoing. Landcare committee in fulfilling its administrative support within Operations Attendance held at all Tidy Attendance held at all Tidy delegated role for Council. available resources. Towns Committee meetings Towns Committee meetings with Agenda and minutes with Agenda and minutes Requests requiring Council undertaken as required and undertaken as required and determination referred to resolutions followed through. resolutions followed through. Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

50 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G5.1.g Support the Access committee in fulfilling Council provide appropriate Director – Environmental Ongoing support provided. Ongoing. its delegated role for Council. administrative support within Services available resources.

Requests requiring Council determination referred to Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.h Support the Australian Chapter of World Council provide appropriate Director – Corporate Administrative support Coordinated World Peace Peace Bell Association in fulfilling its administrative support within Services provided for major activities Day Youth Forum, Youth delegated role for Council. available resources. namely World Peace Day Peace Awards and Peace Bell Ceremony in September Requests requiring Council 2015. Preparation underway determination referred to for 2016 World Peace Day Council meeting in a timely events. manner.

Minutes from all 355 committee meetings provided to Council in a timely manner. G5.1.i Support the Cowra Breakout Association Council provide appropriate Director – Corporate Cowra Breakout Association Cowra Breakout Association in fulfilling its delegated role for Council. administrative support within Services undertakes one significant undertakes one significant available resources. event in August and this was event in August and this was assisted. Council will provide assisted. Council will provide Requests requiring Council support within resources as support within resources as determination referred to requested. requested. Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

Media produced to promote, as appropriate.

51 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G5.1.j Support the Cowra Cultural Council in Council provide appropriate Director – Corporate Cowra Cultural Council Cultural Council’s fulfilling its delegated role for Council. administrative support within Services Annual General Meeting administration supported available resources. conducted August 2015. through the year. Meetings conducted every Requests requiring Council two months. Cultural determination referred to Council has elected a Council meeting in a timely Secretary from within manner. Committee, Council to disseminate Minutes. Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.k Support the Cowra Festival of Council provide appropriate Director – Corporate Meetings conducted monthly. Guest Nation, Belarus, International Understanding committee in administrative support within Services Full program of events confirmed for 2017 Festival. fulfilling its delegated role for Council. available resources. planned. Coordination with Kingdom of Tonga High Requests requiring Council Commission ongoing. determination referred to Council meeting in a timely Festival coordinator engaged manner. for 2016.

Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.1.l Support the Cowra Italy Friendship Council provide appropriate Director – Corporate Council provides support Council provides support Association in fulfilling its delegated role administrative support within Services within resources as within resources as for Council. available resources. requested. requested. Organisation is however virtually inactive at Requests requiring Council this time. determination referred to Council meeting in a timely manner.

Minutes from all 355 committee meetings provided to Council in a timely manner.

52 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility G5.1.m Support the Cowra Regional Art Gallery Council provide appropriate Director – Corporate The Gallery Director The Gallery Director Advisory Committee in fulfilling its administrative support within Services supported monthly meetings supported monthly meetings delegated role for Council. available resources. of the Advisory Committee of the Advisory Committee as basis of the Gallery as basis of the Gallery Requests requiring Council activities. activities. determination referred to Council meeting in a timely Minutes of the Advisory Minutes of the Advisory manner. Committee are forwarded to Committee are forwarded to Corporate Services and Corporate Services and Minutes from all 355 provided to Council on a provided to Council on a committee meetings provided regular and timely basis. regular and timely basis. to Council in a timely manner. Liaise with updates regarding Architect plans re Gallery upgrade.

G5.1.n Support the Cowra Sport and Council provide appropriate Director – Corporate Quarterly Sport & Recreation Sport & Recreation Plan Recreational Council in fulfilling its administrative support within Services Council meetings conducted. 2016-2020 adopted May delegated role for Council. available resources. 2016. Action program Sport & Recreation Planning underway for four-yearly Requests requiring Council Forum held to develop 2015 objectives. determination referred to – 2019 Plan. Council meeting in a timely Meetings conducted manner. quarterly, AGM held in May.

Minutes from all 355 committee meetings provided to Council in a timely manner.

G5.2 Provide support for the G5.2.a Provide details of Council is kept regularly General Manager Councillors are regularly Councillors are regularly continued professional training/skill/professional development informed of all opportunities. advised of professional advised of professional development of Councillors opportunities to Councillors. development and training development and training Attendance is sought in opportunities. opportunities. accordance with Council Policy.

G5.3 Work with community G5.3.a Respond to and where feasible support Attend Chamber and Building General Manager Business Officer attends all Business Officer attends all groups to help them improve the Cowra Business Chamber and Cowra Group meetings. monthly meetings of the monthly meetings of the their overall operational Building Construction Groups requests Cowra business chamber and Cowra business chamber and standard for assistance for projects/initiatives. Support provided subject to building construction group. building construction group. available resources. Support is, and has been Support is, and has been provided to both parties in provided to both parties in the form of finance, training the form of finance, training

53 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility and project facilitation. This and project facilitation. This can be seen in the form of can be seen in the form of Cowra Ca$h funding, support Cowra Ca$h funding, support of the main street marketing and submission of funding launch, facilitation of training applications for identified & capacity building rollouts capacity building workshops etc. and the timely rollout thereof.

G5.3.b Host and facilitate business seminars on Facilitate at least two General Manager To date in excess of 10 Numerous workshops have topics identified by the CBC and CBCG business seminars. seminars have been hosted been provided to business as relevant to their members within and facilitated by Council. and the past financial year. available budget. Amongst these were a series The most recent was done in of Building Construction conjunction with BEC and Seminars on drafting involved the rollout of a 90 compliant tender Accelerated Business submissions, project Breakthrough program in management plans and which five Cowra businesses procedures, Seminars in participated and completed relation to web marketing the program. This program and the leveraging of was co-funded by council to collective social media, the tune of $550 per business financial management and the on completion of the use of cloud based packages, program. and most recently, a two series workshop on building the business case for energy efficiency projects in business.

G5.3.c Research ways of assisting community Conduct a meeting Director – Corporate Grant funding workshops Youth Opportunities groups to function more effectively (i.e. procedures forum for Services conducted in October 2015. application submitted in June meeting procedures, executive training community groups. to assist in funding future for committees). volunteer training courses.

54 2015-2016 Annual Report Cowra Shire Council

Business & Industry (Strategic Theme 5) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B1. Plan for business and industry growth and change 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B1.1 Provide infrastructure to meet B1.1.a Investigate the Business Plan and report be discussed Director – Environmental Discussions have been held This will be dealt with in the business and industry need Enterprise Zones for the with the Department of Services with Council and the DoP - LEP review as some of the industrial zoned land in Planning and then reported to Report to Council February standard clauses have been Cowra with the Council. which will discuss process and changed by DoP which Department of Planning. possible budget implications. address some of Council’s concerns. B1.2 Explore and promote B1.2.a As per Strategy 3 of the Business Investment General Manager A draft document is underway Cowra has collaborated with opportunities for the attraction and Cowra Economic Attraction Prospectus for containing content relevant to RDA and written content for retention of industry, retail and Development Strategy – Cowra endorsed by Council. the topics usually included in the “Invest Central West” Government Services formulate and draft a an investment/economic web portal which can be Business and Investment development prospectus. viewed as per the link in the Attraction Prospectus. Cowra has already previous column. collaborated with RDA and written content for the “Invest Central West” web portal which can be viewed here - Invest Cowra.

B1.3 Work with Cowra Business B1.3.a Review Council’s services to Conduct a survey on at least General Manager Organised and compiled Community Survey Chamber and business operators to ensure high customer one aspect of Council’s surveys on Cowra Aquatic undertaken with strong ensure that Council services and service levels are services. Centre users. positives in relation to Aquatic facilities are keeping pace with maintained. Centre. business community requirements Contributed to the questions developed for a web survey on Cowra Shire’s website content, usability, relevancy & and suggestions on potential improvements.

B1.3.b Building services – Council Continue to provide a PCA Director – Environmental Ongoing. Ongoing. provide a Principal service in Cowra. Services Certifying Authority (PCA) service.

B1.4 Continue to develop land-use B1.4.a Review the Cowra Shire Review the Cowra Shire Director – Environmental This has not commenced. This will be after the LEP planning policies to guide growth and Development Control Plan. Development Control Plan. Services review currently being development in the Cowra Shire undertaken. This will be reported to Council in July/August. This will de delayed due to some work on land classification likely September.

55 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B1.4.b Investigate the applicability Plan and report to be Director – Environmental Discussions have been held This will be dealt with in the of Business Enterprise zone discussed with the Services with Council and the DoP - LEP review as some of the for the industrial zoned land Department of Planning and Report to Council February standard clauses have been in Cowra with the then reported to Council. which will discuss process and changed by DoP which Department of Planning. possible budget implications. address some of Council’s concerns. B1.5 Identify Council’s role in business B1.5.a Completed in 2014/2015 General Manager and industry growth in Cowra Shire and contained within Economic Development Strategy.

B1.6 Develop the Cowra CBD to B1.6.b Completion of the design Design completed after Director – Infrastructure & Concept plans placed on Detailed Design completed make it a focus of business and plans for Kendal Street consultation with business Operations public exhibition in December top block. investment in Cowra Shire footpath treatment and operators and community. 2015 until February 2016. Detailed Design bottom block street furniture. in progress. Promote continuing and Construction not started – planned work to public via still subject to funding media. approval.

B1.7 Position Cowra Shire to prosper B1.7.a Review strategies under the Strategies reviewed and Director – Environmental Review currently being Draft being workshopped with in a low carbon emission future Regional Sustainability implemented subject to Services undertaken – finalised by NRM Group. Draft Action Plan (RSAP) and resources. March 2016. completed will be finalised Natural Resource after September. Management Delivery Plan (NRMDP).

B1.7.b Provide administrative Procedural and administrative Director – Environmental Ongoing. Ongoing. support to the Cowra NRM support provided at all Services Advisory Committee. committee meetings.

Minutes taken for all committee meetings and reported to Council prior to next committee meeting.

B1.7.c Investigate utilising Investigate options of Director – Environmental Ongoing. Research ongoing. detention basins as carbon retrofitting an existing Services sinks. detention basin as wetland/landscaped area in coordination with Lachlan Land Services – Water Sensitive Urban Design Principles.

B1.7.d Provide support to CLEAN Continue to work with and Director – Environmental Ongoing. Ongoing. Inc. support CLEAN Cowra Inc. Services

56 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B2. Tell the world about the opportunities and benefits of Cowra 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B2.1 Work with state and B2.1.a Ensure Cowra businesses are aware of and Council co-ordinates General Manager Attend RDA forums and Attend RDA forums and federal funding bodies to have access to Central West Regional annual attendance of RDA information sessions. Facilitate information sessions. Facilitate support business opportunities Development Authority (RDA). representatives at meeting engagement with RDA and engagement with RDA and in Cowra Shire of Cowra Business Business Chamber/Groups. Business Chamber/Groups. Chamber. Provide information and Provide information and linkages relevant to RDA and linkages relevant to RDA and Council promotes RDA business engagements. business engagements. resource publications and attendance of RDA events.

B2.1.b Ensure Cowra businesses are aware of and Council co-ordinates General Manager Provide information and Provide information and have access to NSW Trade and Investment annual attendance of T&I generate awareness of State generate awareness of State (T&I). representatives at meeting Government services, grants Government services, grants of Cowra Business and support to businesses via and support to businesses via Chamber. the business chamber. the business chamber. Encourage attendance of T&I Encourage attendance of T&I Council promotes T&I workshops and seminars being workshops and seminars being resources and attendance held in Orange and Bathurst. held at various locations. at T&I events.

B2.2 Promote Cowra Shire as a B2.2.a As per Strategy 3 of the Cowra Economic Draft and publish a General Manager Under review and Under review and desirable location for business Development Strategy – formulate and draft a Business Investment development. Cowra has development. Cowra has development at relevant trade Business and Investment Attraction Attraction Prospectus for already collaborated with RDA already collaborated with RDA shows and industry events Prospectus. Cowra. and written content for the and written content for the “Invest Central West” web “Invest Central West” web portal which can be viewed portal which can be viewed as here - Invest Cowra. per the link in the previous column.

B2.3 Provide a website that B2.3.a Seek feedback from business community on Feedback received, General Manager Survey has been developed Website working party has makes it easy to do business in website effectiveness. considered and and launched with results in been convened to discuss Cowra Shire appropriate changes the process of compilation. further enhancements to the incorporated. Ongoing. website.

Survey conducted with over 20 responses from community members. Results currently with Director – Corporate Services for review with potential re-convening on website working party early 2016 to make recommendations for Stage 2 development of the website.

57 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B3. Add value and support to our existing businesses and industries 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B3.1 Support Cowra B3.1.a Deliver and facilitate workshops and seminars Workshops and seminars General Manager To date in excess of 10 seminars Numerous workshops have businesses by making relevant to existing Cowra business operators. delivered as requested by have been hosted and facilitated by been provided to business in programs available Local Business Chamber Council. Amongst these were a the past financial year. The and CBCG within series of Building Construction most recent was done in available budget. Seminars on drafting compliant conjunction with BEC and tender submissions, project involved the rollout of a 90 management plans and procedures, Accelerated Business Seminars in relation to web Breakthrough program in marketing and the leveraging of which 5 Cowra businesses collective social media, financial participated and completed the management and the use of cloud program. This program was based packages, and most recently, a co-funded by council to the two series workshop on building the tune of $550 per business on business case for energy efficiency completion of the program. projects in business.

B3.1.b Work with Cowra Business Chamber, State At least two General Manager To date Council has facilitated two Numerous workshops have Government and other agencies to provide workshops/seminars workshops with BEC under the been provided to business in appropriate information/skills programs and provided and facilitated ASBAS Programme, providing the past financial year. The workshops. with assistance from subscribed businesses with relevant most recent was done in Council. information and tools to use in the conjunction with BEC and area of collective social media and involved the rollout of a 90 financial management of small Accelerated Business business in a cloud based Breakthrough program in environment. which 5 Cowra businesses participated and completed the program. This program was co-funded by council to the tune of $550 per business on completion of the program.

B3.2 Liaise with the Cowra B3.2.a Council and Business Chanber meet at least Meetings held General Manager Attend monthly meetings of the Attend monthly meetings of Business Chamber to assist annually business chamber as a committee the business chamber and with their initiatives member and support initiatives/issues support initiatives/issues raised Respond to initiatives of Cowra Business Respond to initiatives raised where possible. Council’s where possible. Council’s Chamber. presented in a timely contributions are both financial and contributions are both financial manner. in-kind. and in-kind.

58 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B4. Link and connect Cowra to the world

4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B4.1 Liaise with Cowra and B4.1.a Support Cowra businesses in accessing Council representation at General Manager Facilitate and participate at Facilitate and participate at Central West Business resources through the local and regional local and regional Business both local and regional both local and regional Chambers to promote Business Chambers. Chamber meetings. business chamber meetings. business chamber meetings. business links and opportunities B4.2 Provide adequate B4.2.a Continue planning for the southern Finalise Review of Director – Infrastructure & Draft REF prepared, additional REF on public exhibition transport infrastructure that Cowra alternate heavy vehicle route. Environmental Factors and Operations hydraulic modelling and until 12 August 2016. links Cowra to other regions implement next steps in archaeological investigation planning process. being conducted prior to final report being delivered to Council early in 2016.

B4.2.b Advocate for reopening of Blayney to Participate in Rail Group General Manager The Mayor, General Manager The Mayor, General Demondrille Rail Line and Inland Rail. meetings. and Business Officer have Manager and Business continued their involvement in Officer have continued their Lobby support from NSW this ongoing process. The involvement in this ongoing Business Chamber. Mayor and Business Officer process. The Mayor and attended relevant meetings at Business Officer attended Promote benefits of council and LRTC lobby group. relevant meetings at council reopening of Blayney- Provide updates and and LRTC lobby group. Demondrille line and inland information to business Provide updates and rail corridor as appropriate. chamber and CENTROC as information to business matters unfold. Watching brief. chamber and CENTROC as matters unfold. Watching brief B4.2.c Develop Cowra Airport as a regional Stage 1 subdivision released. Director – Infrastructure & Subdivision approved to Physical works commenced aviation centre. Operations commence 2016 for Stage 1 & SW detention basin 2. completed.

B4.2.d Advocate for construction of Bells Line Attend and participate in General Manager The Mayor regularly attends The Mayor regularly attends Expressway. Bells Line Expressway Group the Bells Line Expressway the Bells Line Expressway meetings. Group meetings. In addition via Group meetings. In addition Centroc the Council via Centroc the Council continually advocates as part of continually advocates as the region for the expressway. part of the region for the expressway.

B4.2.e Advocate for upgrading of the Lachlan Submission made to Roads General Manager Council has put forward the Council has put forward the Valley Way. and Maritime Services and upgrading of this road as a key upgrading of this road as a relevant Minister. priority to be included in the key priority to be included Centroc priorities for the in the Centroc priorities for region. the region.

59 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B4.2.f Subject to condition assessment of Consultant engaged, Director – Infrastructure & Consultant engaged in Low level bridge report existing Cowra low level bridge, consultation and investigation Operations December. Report to be completed. Council investigate the most appropriate location undertaken with report submitted by end February approved to do options for a new low level bridge to cater for the presented to Council for 2016. report for the low level long term transport needs of Cowra. consideration. bridge replacement.

B4.3 Improve communication B4.3.a Lobby mobile phone providers to extend Letters sent to mobile phone General Manager Facilitated the collection and Facilitated the collection and infrastructure in Cowra Shire coverage in the Shire. providers and responses compilation of round 1 mobile compilation of round 1 received indicating their plans phone black spot issues which mobile phone black spot for Cowra Shire. resulted in successful federal issues which resulted in funding of several greenfield successful federal funding of Where gaps identified, report mobile towers sites to be several greenfield mobile to Council detailing future rolled out in the broader towers sites to be rolled service delivery challenges for Cowra area. No new or out in the broader Cowra local communities in Cowra further input was received for area. No new or further Shire. round two submissions which input was received for closed in December 2015. round two submissions Correspondence sent and which closed in December meetings held with relevant 2015. Ministers where appropriate.

Media and promotions undertaken where appropriate.

B4.3.b Advocate for rollout of the National Letters sent to NBN Co. General Manager Quarterly contact with NBN Quarterly contact with Broadband Network in Cowra Shire. community affairs manager, Ian NBN community affairs Scott has been established and manager, Ian Scott has been remains in place. Planning for established and remains in “fibre to the node” connection place. of Cowra township is currently Planning for “fibre to the under way with potential node” connection of Cowra activation of NBN services in township has now Cowra township as early as concluded with build July 2016. Satellite NBN commencing in the new service connections should be financial year and available from around the same connection late 2016/early time to all those properties 2017. Satellite NBN service and outlying areas in the shire connections will commence not covered by fixed or in the new financial year to wireless NBN connection. all those properties and outlying areas in the shire not covered by fixed or wireless NBN connection

60 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B5. Grow Cowra as a centre for excellence in agriculture, research and innovation 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B5.1 Maintain Cowra’s B5.1.a Maintain saleyards to the Standards are maintained Director – Infrastructure & Standards are met and Strong stock through put, position as a premier required standards to meet and improved to meet Operations improvements continue to providing customers goal livestock producing region regional demand. demand. be made as per Council services. Improvements resolutions. competed include: new Saleyards promoted as a lighting, additional ramps regional livestock facility. and fencing. Holding yards are extended to meet demand. B5.2 Promote retention and B5.2.a Advocate for the Correspondence sent and General Manager Engaged with LLS and other Engaged with LLS and other improvement of an involvement of the meetings held with relevant agricultural stakeholders to agricultural stakeholders to Agricultural Research Agricultural Research government stakeholders advocate participation in advocate participation in Station that supports the Station in CLEAN Cowra’s where appropriate. CLEAN’s project initiatives. CLEAN’s project initiatives. local agricultural sector project initiatives. Meetings involving RDA, Meetings involving RDA, Facilitation provided by NSW T&I, NRM and NSW T&I, NRM and Council to lobby relevant AusTrade has been AusTrade has been Ministers where brokered to promote brokered to promote appropriate. interest and involvement interest and involvement Media and promotions with the CLEAN initiative. with the CLEAN initiative. undertaken where The matter is ongoing. The matter is ongoing. appropriate. B5.3 Develop a Council B5.3.a This is covered by the State Assess development Director – Environmental Ongoing. Ongoing as required by policy toward mining Environmental Planning applications in accordance Services legislation. developtment Policy (SEPP) Mining and with relevant legislative Petroleum Production and requirements. Extractive Industries 2007 – this has recently been amended to apply restrictions to coal seam gas production. B5.4 Support initiatives to B5.4.a Provide appropriate support Support provided as General Manager Organised and staffed Cowra Show not held grow and show our local to identified programs and requested subject to attractive and appropriate during this timeframe. agricultural sector events such as the Cowra available resources. display at 2015 Cowra Show. Show. Council under the sustainable advantage programme through OE&H have accessed training for regional business and community stakeholders to demonstrate how one can build the business case for energy efficiency projects. The two engagements were facilitated within budget and available resources.

61 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B5.5 Support and B5.5.a Support the Natural Ongoing administrative Director – Environmental Ongoing support provided. Ongoing. encourage forums for Resources Management support to the NRM Services encouraging excellence and Advisory Committee Committee. innovation in the (NRM). agricultural sector B5.5.b Provide appropriate support Co-funding/resourcing of General Manager Council through resolution Council through resolution to CLEAN Cowra CLEAN initiative to trial has supported CLEAN to has supported CLEAN to community initiative by stage. the tune of $80,000 plus in- the tune of $80,000 plus in- promoting/facilitating kind (Officer’s, Director’s & kind (Officer’s, Director’s & engagement with NRM and Executive’s time, venue & Executive’s time, venue & The Agricultural Research infrastructure, etc) infrastructure, etc) Station. Council’s direct and indirect Council’s direct and indirect participation and support of participation and support of the CLEAN initiative has the CLEAN initiative has played (and remains) a key played (and remains) a key role in driving the initiative role in driving the initiative to trial stage. Initiatives are to trial stage. Initiatives are progressing and remains progressing and remains ongoing. ongoing.

B5.5.c When priorities align Advocate and/or lobby for General Manager Engaged with LLS and other Engaged with LLS and other support and work with agreed priorities. agricultural stakeholders to agricultural stakeholders to other bodies such as Local advocate participation in advocate participation in Land Services and NSW CLEAN’s project initiatives. CLEAN’s project initiatives. Farmers. Meetings involving RDA, Meetings involving RDA, NSW T&I, NRM and NSW T&I, NRM and AusTrade has been AusTrade has been brokered to promote brokered to promote interest and involvement interest and involvement with the CLEAN initiative. with the CLEAN initiative. The matter is ongoing. The matter is ongoing.

62 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: B6 Identify and develop profitable and sustainable tourism products for Cowra 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility B6.1 Provide resources and B6.1.a Support Cowra Tourism in Provide annual financial General Manager Funds provided in accordance Funds provided in accordance financial assistance to Cowra accordance with Memorandum contribution to Cowra with budget. with budget. Tourism Corporation to of Understanding. Tourism Corporation. effectively support and grow General Manager attends General Manager attends the Shire’s tourism sector Foster linkages between regular meetings with the regular meetings with the Cowra Tourism and Cowra Cowra Tourism Manager. Cowra Tourism Manager. Council.

B6.1.b Provide two representatives on Council representatives attend General Manager Councillors Walsh and Smith Councillors Walsh and Smith Cowra Tourism Board. board meetings and report represent Council on the represent Council on the back key issues to Council. Tourism Board and report Tourism Board and report back back to Council on a regular to Council on a regular basis. basis.

B6.1.c Respond to initiatives and Respond to initiatives/requests General Manager Meetings with the Cowra Meetings with Cowra Tourism requests from Cowra Tourism in a timely manner. Tourism Manager has resulted Manager have resulted in Corporation. in business and chamber business and chamber support support for the Christmas for the Christmas Festival and Festival and Kendal Street Kendal Street marketing marketing campaign. campaign.

B6.2 Work with the board of B6.2.a Provide board member Mayor attends board meetings General Manager The Mayor, as Council’s The Mayor, as Council’s the Cowra Japanese Garden (Mayor) to company. and reports key issues to representative, attends board representative, attends board and Cultural Centre Inc to Council. meetings. meetings. ensure the long-term future of the facility B6.2.b Respond to initiatives and Respond to initiatives/requests General Manager Mayor, General Manager and Mayor, General Manager and requests from the Cowra in a timely manner. staff liaise with visiting Japanese staff liaise with visiting Japanese Japanese Garden and Cultural groups. groups. Centre Inc. Requests requiring Council determination referred to Council meeting process in a timely manner.

B6.3 Develop the Lachlan River B6.3.a Pursue funding and implement Works completed as funds Director – Infrastructure & Funding applied for as required. Funding applied for as required. Precinct as an attractive tourist when adequate resources are become available. Operations Investigation still required on destination available the following re-use options for disused River Park to Edgell initiatives from the Lachlan Railway line. Park link being investigated at River Precinct Masterplan: present in conjunction with low Extending the cycleway on the River Park to Edgell Park link level bridge report. Eastern bank, including past the being investigated at present in Now that Erambie shared path front of the Cowra Van Park conjunction with low level has been completed under Investigations into providing bridge report. grant funding, extra work for better pedestrian access across Now that Erambie shared path rest areas and Aboriginal Motifs The Lachlan River has been completed under can now be pursued. Providing the Aboriginal Motifs grant funding, extra work for on the Erambie Link project rest areas and Aboriginal Motifs Provision of rest areas along can now be pursued.

63 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility this section of path/ cycleway ( Erambie Link) In regards to the Bridge Pylons, Provision of Gross Pollutant issues have been addressed and Traps on the stormwater quotes being obtained for outlets refurbishment of existing Investigations of reuse options painted pylons and a separate for the disused Railway line contract for unpainted pylons adjacent to Col Newton Park will be pursued. Lachlan River Bridge pylon murals, upgrade/ extension

B6.4 Develop the Cowra Peace B6.4.a Pursue funding and implement Works completed as funds Director – Infrastructure & Funding applied for as required. Precinct as an attractive tourist when adequate resources are become available. Operations Investigation still required on destination available the following re-use options for disused initiatives from the Peace Railway line. Precinct Masterplan: Investigations into providing Power supply options still being power to the POW car park pursued. site Investigations into the Toilet block facility grant provision of a toilet block funded and DA prepared. DA submitted. facility at the POW site Investigation into the supply of Potable water connection for Potable water supply potable water to the site drinking fountain and toilet investigated and included as Ongoing improvements into block is in close proximity to part of toilet block works. the Electrical Switch Room existing network . ruins (maintaining what’s there) Further continuation of the Cattle grid has been removed Consultant engaged to consider cycle ways onsite, including and roadway reinstated. options. linkages from the existing to the Japanese Gardens car park Funding sought under Further works on the Pedestrian & Cycling Plan. interpretation of the POW campsite, including going into C Review in 2016/2017 and D compounds Removal of cattle grid from Completed. existing roadway and restoration back to roadway.

64 2015-2016 Annual Report Cowra Shire Council Transport & Infrastructure (Strategic Theme 6) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: T1. Develop an integrated transport system that addresses local and regional needs in relation to road, rail and air 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T1.1 Maintain local and T1.1.a Complete the following All funds spent by Director – Infrastructure & Works completed: Waratah Street complete. regional road networks to Roads to Recovery projects: 30/6/2016. Operations Rivers Road Bullfrog Road complete. enable the safe and efficient Gravel resheeting program Waratah Street (90%) Rivers Road 15-15.7km movement of traffic at the CBD Redevelopment (north Doncaster Drive complete. lowest life-cycle cost side footpath) Gravel resheeting Reg Hailstone Way – safety Rehabilitation on Rivers Fence Complete. Road, Merriganowry Road, Morongla Road 3-6km Waratah Street and complete. Doncaster Drive.

T1.1.b Review and maintain Transport Asset Director – Infrastructure & Maintenance activities Unable to deliver on Transport Asset Management Plan Operations conducted in accordance Transport AMP targets Management Plan. implemented and with plan. within allocated budgets. continuously updated – improvement program developed for next five years.

T1.1.c Investigate condition of Condition assessment Director – Infrastructure & Consultant engaged in Low level bridge report Cowra low-level bridge report presented to Operations December. Report to be completed. inclusive of the provision of Council. submitted by end February access for pedestrians and 2016. cyclists. (budget allocation $100,000)

T1.1.d Subject to condition Consultant engaged, Director – Infrastructure & Not commenced, pending At the June meeting, assessment of existing consultation and Operations T.1.1.c Council resolved to do Cowra low level bridge, investigation undertaken Options report. investigate the most with report presented to appropriate location for a Council for consideration. new low level bridge to cater for the long term transport needs of Cowra.

T1.2 Work with Roads and T1.2.a Work with Roads & Program agreed and Director – Infrastructure & Works in progress MR310 All RMS work completed as Maritime Services (RMS) to Maritime Services to agree Council engaged as principal Operations Blackspot done. Heavy programmed. Including enable the safe and efficient on improvements required contractor to carry out Patching in progress. extra works and money. movement of traffic on the to State owned road works. state owned road network network. Contract requirements met. within Cowra Shire

65 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T1.2.b Maintain working Regular meetings held and Director – Infrastructure & Monthly meetings held and RMS very pleased with relationship with Roads & any issues resolved in a Operations good feedback from RMS Cowra attendance at Maritime Services. positive manner. received at meetings which meetings and delivery of are minuted. All issues that program. have been raised are addressed.

T1.3 Maintain ancillary road T1.3.a Ancillary road facilities to be Facilities maintained Director – Infrastructure & Done as required. Completed as required. facilities (e.g. signs, maintained. according to agreed Operations delineation and associated standards and work structures) to enable the completed as required. safe and efficient movement of traffic

T1.4 Source road making T1.4.a Address conditions of All EPA requirements are Director – Infrastructure & Requirements complied Bird nest boxes installed at materials in an consent for Council complied with in full. Operations with. Gospel Oak Quarry to environmentally responsible quarries. complete compliance. manner

T1.5 Maintain, improve and T1.5.a Maintain, improve and New bike path and walking Director – Infrastructure & Funding for extension of develop footpaths and develop footpaths to user tracks implemented subject Operations Erambie Bike Path from walkways to ensure the safe standards. to funding availability. Low Level Bridge to River and efficient movement of Park applied for: users, including access for Existing network and new RMS funding for aged and disabled persons paths be maintained to investigation/ Completed. minimise hazards for all design of link between users. Develop footpath Edgell Park and River Park maintenance procedure. approved – refer to B4.2.f. RMS funding provided for Benefits of cycling to health linemarking bike lanes on and the environment roads – plan endorsed by promoted. Traffic Committee and Completed some defects to Council in December 2016. be rectified during maintenance period.

T1.5.b Review footpaths and road Repairs undertaken Director – Infrastructure & Not yet commenced. Not funded or resourced. crossings for rideability of according to review and Operations mobility scooters. within allocated budget.

T1.6 Improve local traffic T1.6.a Continue planning for the Finalise Review of Director – Infrastructure & Draft REF prepared, REF on public exhibition conditions within the southern Cowra alternate Environmental Factors and Operations additional hydraulic until 12 August 2016. Cowra CBD heavy vehicle route. implement next steps in modelling and planning process. archaeological investigation being conducted prior to final report being delivered to Council early in 2016.

66 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T1.6.b Undertake the following Works completed on time, Director – Infrastructure & Concept plans placed on Detailed Design completed works/designs in within budget and with Operations public exhibition in top block. accordance with the minimal disruption and/or December 2015 until Detailed Design bottom adopted CBD Masterplan as complaint from local February 2016. block in progress. amended: business. Construction not started– Completion of the design Squire Park plans completed still subject to funding plans for Kendal Street and costed after approval. footpath treatment and consultation with the street furniture. community. Complete design for refurbishment of Squire Park.

T1.6.c To investigate options for Preliminary designs Director – Environmental Report to Council January Westend car parking is on alternative parking in the completed for the Services /Febuary on the finding from hold pending investigations CBD. Target/Lachlan Hotel car the consultants assessment on other potential car parking area and the “Top of the Westend Carpark. parking options. A quote is of the Town” carpark and being sought from a valuer discussions held with in relation to the Lachlan owners with a view to Hotel car park likely in reaching agreement on August. improvement plans.

Determine feasibility of proceeding with the Westend carpark proposal.

Approach Cowra Hospital and NSW Health seeking to investigate options for providing on-site carparking at Cowra Hospital.

T1.7 Develop cycleways in T1.7.a Prepare a Disability A Disability Inclusion Plan Director – Environment Report coming to the Budget set for the 2016/17 Cowra Shire Inclusion Plan. to be completed and Services January Information meeting financial year. A brief has adopted by Council when – request for a budget been prepared to be sent to the legislation has been allocation to engage a consultants. finalised. consultant.

T1.7.b Seek funding for projects Submissions made. Director – Infrastructure & Projects from Pedestrian & identified in the Pedestrian Operations Cycling Plan that have and Cycling Plan. funding approved are: Project C2 - Riverpark to Eigell Park Link (Design C2 – Design completed. only) -Consultant appointed includes options for low Level Bridge. Project C3 - Bicycle stands C3 – Completed.

67 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility for CBD to be done in conjunction with Kendal Street footpath upgrade.

Project C6 - On-road C6 – Works comleted. bicycle stencil and markings Defects to be rectified planning completed. during maintenance period.

Project C4 - Shared path Funding application for Railway Lane extension - successful. Works now application submitted programmed during awaiting response. 2016/2017.

T1.8 Plan for an alternative T1.8.a Seek funding for alternate Submissions made. Director – Infrastructure & Not yet commenced. REF currently on Public heavy vehicle route for heavy vehicle route. Operations Waiting on final REF. Exhibition until 12 August Cowra 2016.

T1.9 Maintain and improve T1.9.a Market Cowra Airport as a Stage 1 subdivision released. Director – Infrastructure & Subdivision approved for Commenced. Cowra Airport as a certified regional aviation facility. Operations Stage 1 and Stage 2 to Stormwater Detention basin aerodrome and a place of proceed to construct in completed. aviation related business 2016. Reseal of runway carried out.

T1.10 Be an active T.1.10.a Work with relevant Attend and participate in General Manager Remain a paid member of Remain a paid member of supporter and advocate of government and industry meetings as required. LRTC and attend, facilitate LRTC and attend, facilitate regional and inland rail stakeholders to reopen the & promote rail action that & promote rail action that Blayney-Demondrille rail Media releases when advances Cowra’s access to advances Cowra’s access to line as per Strategy 2.4 of appropriate. rail freight transportation rail freight transportation the Cowra Economic network in NSW. network in NSW. Development Strategy.

T1.11 Advocate for T1.11.a Attend at least one Bells Attend and participate in General Manager The Mayor attends Bells The Mayor attends Bells construction of Bells Line Line Expressway Group meeting. Line Expressway meetings Line Expressway meetings Expressway (BLEG) meeting annually. on a regular basis. on a regular basis.

T1.11.b Participate in co-ordinated Media statements. General Manager Edited and disseminated a Edited and disseminated a Centroc media on the range of Centroc-generated range of Centroc-generated route. media releases with Mayor media releases with Mayor as spokesperson. as spokesperson.

T1.12 Advocate for T1.12.a Make representations to Representations made and General Manager As Chair of Centroc and via As Chair of Centroc and via improvements to the appropriate Members of response received. the Centroc Executive the the Centroc Executive the as a Parliament. Mayor participated in a Mayor participated in a major regional road number of delegations to number of delegations to State and Commonwealth State and Commonwealth members of Parliament members of Parliament advocating for the route. advocating for the route.

68 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T1.13 Monitor availability of T1.13.a Seek feedback from the Feedback sought and report General Manager Promoted Council calls for Promoted Council calls for public transport services community on adequacy of prepared detailing the range greater public transport greater public transport available to residents of the public transport options. of options and deficiencies if access for Shire residents in access for Shire residents in Shire any. particular and country particular and country people in general. people in general. Technical assistance provided to Council to Ongoing – The lobby Ongoing – The lobby lobby relevant Ministers continues for Cowra continues for Cowra where appropriate. residents to regain access to residents to regain access to scheduled rail and aviation scheduled rail and aviation Media and promotions services. With road services. With road undertaken where providing the only access to providing the only access to appropriate. market, Cowra’s growth market, Cowra’s growth remains inhibited due to remains inhibited due to limitations in affordable & limitations in affordable & timely access to markets. timely access to markets.

COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: T2 Provide water, sewerage, stormwater, innovative energy and communication services to meet community needs 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T2.1 Maintain and improve T2.1.a Work with Centroc Water All plans are adopted by Director – Infrastructure & Meetings attended: All Bi Monthly meetings shire’s water supply Utilities Alliance to deliver Council. Operations 23 July attended. network to meet consumer Best Practice suite of Plans 21 August demand and satisfy health including: 8 October requirements at the lowest Integrated Water Cycle 19 November life-cycle cost Management Plan Draft DSP received Developer Servicing Plans December 2015 for Water and Wastewater Asset valuations. T2.1.b Improve water supply Water Supply Network Director – Infrastructure & Wattamondara complete Completed. network. Renewal Program Operations Koorawatha complete Woodstock Stage 3 implemented. Woodstock in progress. complete. Woodstock Stage 4 complete. Woodstock Stage 5 in progress. Works ahead of schedule and under budget.

69 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T2.1.c Water samples taken as per Water samples tested and Director – Infrastructure & Samples taken as per NSW Samples tested meet health Health Department meet health standards Operations Health requirements. standards 100% compliance. requirements. (Australian Drinking Water Standards).

T2.2 Work with NSW T2.2.a Work with NSW Respond to request from Director – Infrastructure & Council approved “in Council accept in principle Government to determine Government and Wyangala NSW Office of Water. Operations principle” to assume control to take over subject to an the feasibility of establishing community to progress of new plant & system after agreed amount for shortfall. a Council operated establishment of Wyangala Council position presented it is constructed subject to Wyangala village sewerage village sewerage system. to NSW Government. provision and review of cost system estimates.

T2.3 Provide a treated T2.3.a Wastewater Asset Wastewater Asset Director – Infrastructure & Maintenance activities Wastewater AMP waste water system that Management Plan is Management Plan Operations conducted in accordance continuously developed. meets environmental reviewed and maintained. implemented and with plan. standards with maximum continuously developed. opportunity for re-use T2.3.b Discharge from wastewater Compliance achieved. Director – Infrastructure & Complying. 100% compliance for June treatment plant to meet Operations 2016. 99% compliance for Environment Protection 2015/2016 financial year. Agency (EPA) sensitive This exceeds target of 95%. water standards.

T2.3.c Monitor odour emissions Less than 5 odour Director – Infrastructure & Complying. Nil complaints registered, from Waste Water complaints received per Operations exceeds target. Treatment Facility. year.

T2.3.d Upgrade Showground Works completed. Director – Infrastructure & To be designed as part of Include in West Cowra Wastewater pump station. Operations West Cowra Sewerage Sewer Design. Design.

T2.3.e Commence design work Design completed and Director – Infrastructure & Brief prepared for design Draft design completed.. and consultation of the estimated costs available for Operations work. Waiting on quotes. connection of West Cowra consideration of funding. residents to the Cowra Consultation commenced Sewer network. with affected residents.

T2.4 Maintain and improve T2.4.a Manage stormwater Cowra Stormwater Asset Director – Infrastructure & Asset Management Plan not Deferred to 2016/17 due to the collection and removal network to public Management Plan Operations yet commenced. prioritising of workload. of stormwater to minimise satisfaction. implemented. damage and public nuisance T.2.4.b Investigate utilising Investigate options of Director – Environmental Ongoing research. Research ongoing. throughout the shire detention basins as carbon retrofitting an existing Service sinks. detention basin as a wetland /landscaped area in coordination with Lachlan Land Services – Water Sensitive Urban Design Principles.

70 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T2.4.c Complete identified work in Designs and estimates of Director – Infrastructure & Preliminary designs In discussion with funding stormwater easements capital works adopted for Operations prepared provider to include this through “Olive Grove”. 2015/16 budget works Additional modelling modelling within existing completed. required. grant. Consultant brief prepared and put to market.

T2.4.d Continue investigation of Designs and estimates of Director – Infrastructure & Preliminary designs In discussion with funding flood pump and outlet from capital works completed for Operations prepared provider to include this West Cowra drain to consideration of funding in Additional modelling modelling within existing Lachlan River. 2016/17 budget subject to required. grant external funding. Consultant brief prepared and put to market. Completion due Feb 2017.

T2.5 Maintain and improve T2.5.a Review/maintain Building Building Asset Management Director – Infrastructure & Draft AMP prepared. Building AMP adopted in Council buildings to support Asset Management Plan. Plan adopted by Council Operations Workshops held with June 2016. operational requirements implemented and updated. Councillors. Plan to be revamped and Maintain buildings as per presented to Council in Asset Management Plan. March 2016.

T2.5.b Maintain register for Register is maintained. Director – Infrastructure & Register reviewed and Follow up register and Council buildings and Operations maintained as part of action as a result of Building properties. Building AMP preparation. AMP adoption.

T2.6 Maintain and improve T2.6.a Develop plan for the Cowra Cemetery Expansion Director – Infrastructure & Year 3 works under way. Drainage structures in other Council assets to expansion of Cowra Plan Stage 3 is completed. Operations progress. Road to be sealed meet operational Cemetery. when weather conditions requirements (budget allocation suit. $120,000)

T2.7 Provide and maintain T2.7.a Review 10 year plant Program completed annually Director – Infrastructure & Plant replacements on track All plant replaced as per plant of an appropriate type, replacement program. and reported to Council as Operations to complete prior to June program and within budget. size and number to (budget allocation part of budget discussions. 2016. 10 year program 10 year program revised. undertake Council $650,000) being reviewed for inclusion operations in draft 2016/2017 Operations Plan.

T2.7.c Finalise Depot Stage 2 plans completed and Director – Infrastructure & Masterplan completed Modified DA approved in Redevelopment Stage 2 – estimated for inclusion in Operations Stage 1 under June 2016. Quotes are now Plans. 2016-2017. implementation sought following approval. Stage 2 still to be costed.

T2.8 Work with T2.8.a Lobby mobile phone Letters sent to mobile General Manager Facilitated the collection Facilitated the collection and government and relevant providers for extension of phone providers and and compilation of round 1 compilation of round 1 telecommunication service. responses received mobile phone black spot mobile phone black spot providers to deliver indicating their plans for issues which resulted in issues which resulted in

71 2015-2016 Annual Report Cowra Shire Council 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility equitable access to Cowra Shire. successful federal funding of successful federal funding of communication and several greenfield mobile several greenfield mobile Correspondence sent and technology for our entire towers sites to be rolled towers sites to be rolled meetings held with relevant shire out in the broader Cowra out in the broader Cowra government stakeholders area. No new or further area. No new or further where appropriate. input was received for input was received for Media and promotions round two submissions round two submissions undertaken where which closed in December which closed in December appropriate. 2015. 2015. T2.8.b Advocate for rollout of the Seek timeline from NBN General Manager Quarterly contact with Quarterly contact with NBN in Cowra Shire. Co and lobby for more NBN community affairs NBN community affairs capacity and bandwidth if manager, Ian Scott has been manager, Ian Scott has been required. established and remains in established and remains in place. Planning for “fibre to place. Planning for “fibre to the node” connection of the node” connection of Cowra township is Cowra township is has now currently under way with concluded with build potential activation of NBN commencing in the new services in Cowra township financial year and as early as July 2016. connection late 2016/early Satellite NBN service 2017. Satellite NBN service connections should be connections will commence available from around the in the new financial year to same time to all those all those properties and properties and outlying outlying areas in the shire areas in the shire not not covered by fixed or covered by fixed or wireless wireless NBN connection. NBN connection.

T2.9 Undertake research T2.9.a Progressively implement the Investigate feasibility of Director – Infrastructure & External review offered by Follow up grant application and development to recommendations of the installing solar panels on Operations OEH as Council is a for sustainable advantage improve energy efficiency of Level 2 Energy Audits, Council office building and sustainable advantage audits. Council buildings, plant and carried out for ‘high energy Civic Centre. member. equipment user’ Council owned facilities. Feasibility report presented to Council. Design and estimate costs

for solar panels on Council offices and Civic Centre.

T2.9.b Provide support to CLEAN Continue to work with and Director – Environmental Ongoing. Ongoing. Inc. support CLEAN Cowra Inc. Services

T2.10 Develop water and T2.10.a Review pricing options to Implementation of Strategic Director – Corporate Water and Sewer Pricing to Water and Sewer Pricing to sewer pricing to meet needs satisfy needs of funds. Business Plan pricing. Services be reviewed as component be reviewed in 2016/17. of community and Council of Long Term Financial Plan in 2016.

72 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: T3. Secure Cowra’s water supply 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility T3.1 Provide a secure water T3.1.a Implement Water Quality Water Quality Management Director – Infrastructure & Review of DWQMS Review of DWQMS supply for community needs Management Plan. System implemented in Operations undertaken completed and submitted to and contingencies accordance with ADWG. Updated DWQMS NSW Health. submitted to NSW Health.

T3.1.b Implement upgrade of Upgrade completed. Director – Infrastructure & Consultant engaged to Draft report reviewed with Lachlan River intake. Operations investigate options for concerns to be addressed upgrade. regarding lifecycle costs for operation and ongoing maintenance costs.

T.3.1.c Implement upgrade of Upgrade completed. Director – Infrastructure & Not yet commenced. Upgrading may not be the Wyangala WTP. Operations solution. Replacement option to be considered in conjunction with State Park as a customer.

T3.2 Maintain Cowra T3.2.a Work with Centroc Water Regular attendance of Director – Infrastructure & Meetings attended: Bi-monthly meetings Council as the principal Utilities Alliance (CWUA) meetings and participation Operations 23 July attended as required. water supply authority for to achieve best practice. in CWUA projects. 21 August Cowra 8 October 19 November Draft DSP received December 2015

T3.2.b Mayor, Councillors and staff Advocacy undertaken. General Manager The Mayor as Chair of The Mayor as Chair of advocate at appropriate Centroc strongly advocates Centroc strongly advocates forums. the benefits of participating the benefits of participating in the Centroc Water in the Centroc Water Utilities Alliance. Utilities Alliance.

T3.3 Provide a land-use T3.3.a Groundwater Vulnerability Assessment of development Director – Environmental Not commenced. Council is working with the planning framework to of the Cowra Local applications lodged with Services Department of Health on identify and protect Environmental Plan 2012 Council under the this and it is yet to be vulnerable aquifers (CLEP) provides controls provisions of C7.6 of the completed. for groundwater, the CLEP where required. maintenance of hydrological functions of key Develop a policy regarding groundwater systems and to buffers to water draw avoid adverse points for DA assessment in environmental impact. conjunction with the Department of Health.

73 2015-2016 Annual Report Cowra Shire Council Natural Resource Management (Strategic Theme 7) COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: N1. Make Cowra a centre of environmental excellence 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility N1.1 Position Cowra to N1.1.a Review strategies under the Ongoing commitment to Director – Environmental Review commenced likely Draft completed and will be grow and prosper in a low Regional Sustainable reduce carbon emissions. Services to be complete by March finalised after September. carbon emission Agriculture Project (RSAP) 2016. environment and Natural Resources Management Advisory Committee (NRM) Delivery Plan

N1.1.b Provide support to CLEAN Continue to work with and Director – Environmental Ongoing support provided. Ongoing. Inc support CLEAN Cowra Services Inc. N1.1.c Investigate utilising Investigate options of Director – Environmental Ongoing research Research ongoing. detention basins as carbon retrofitting an existing Services continuing. sinks detention basin as a wetland /landscaped area in coordination with Lachlan Land Services – Water Sensitive Urban Design Principles.

N1.2 Investigate N1.2.a Progressively implement the Investigate feasibility of Director – Environmental This is ongoing and subject Ongoing with Asset opportunities for the use of recommendations of the installing solar panels on Services to funding. Department. renewable/alternative Level 2 Energy Audits, Council office building and energy sources for Council carried out for ‘high energy Civic Centre. Presently being reviewed infrastructure user’ Council owned along with all Level 2 Energy facilities Feasibility report presented audits. to Council. Design and estimate costs for solar panels on Council offices and Civic Centre.

N1.3 Lead on NRM N1.3.a Implement strategies under Cowra Roadside Vegetation Director – Infrastructure & RVMP adopted RVMP implemented. initiatives and projects in the RSAP and Natural Management Plan adopted Operations RVMP considered in the region Resources Management and implemented planning of work on roads. Advisory Committee (NRM) Delivery Plan

74 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: N2. Build partnerships with people who work with and care for the land to secure a healthy environment

4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility N2.1 Support Local Land N2.1.a Attend strategy meetings as Timely response to Director – Infrastructure & Services Manager recently Regional Weeds Committee Services Department of requested government authority Operations nominated as Council meetings attended as Primary Industries (DPI), referrals representative on Regional required. NSW Farmers and other Weeds Committee. authorities to deliver their environmental management programs for non-urban environs

N2.2 Liaise with the local N2.2.a Meet at least annually with Mayor and General Manager General Manager The CLALC has recently The Mayor and General Aboriginal community to Cowra Local Aboriginal attend meetings with Land been reformed with a new manager have met together identify suitable projects, Land Council Council executive. Attempts will be and separately with key sites and projects that made to meet with the numerous aboriginal groups improve environmental At least one collaborative executive in the first half of and individuals as requests outcomes project identified annually 2016. The Mayor and come i eg traditional burn. General manager have met together and separately with numerous aboriginal groups and individuals as requests come in.

N2.3 Work with Local N2.3.a Provide small grants for Applications called for and Director – Environmental Ongoing – new round of Funding has been granted to Land Services, other community groups to funding provided under Services funding opportunities has four applicants for the agencies, community groups undertake environmental Environmental been released. 2015/2016 financial year. and other stakeholders to improvement projects Improvements Grant deliver environmental Scheme improvement projects and programs in urban environments and other Council managed land

75 2015-2016 Annual Report Cowra Shire Council COMMUNITY STRATEGIC PLAN 2012-2036 - Strategic Direction: N3. Promote practices to encourage Cowra to be an environmentally responsible community 4 Years Delivery Twelve Month Program 1 Year Operational Plan 2015-2016 Six Month Review Review 2013-2017 Program Link Action Performance Measure Responsibility N3.1 Work with the N3.1.a Continue with Recycling Recycling has increased Director – Infrastructure & Education achieved through: Ongoing. community to maximise re- Education Strategy (RES) through education – Operations RAFCA cycling Recycling Educating Waste to Art Strategy. Waste Watchers

Waste watchers program implemented through schools.

N3.1.b Investigate expansion of Investigations undertaken Director – Infrastructure & Media releases sent out Recycling works continue to Cowra Material Recycling and reported to Council Operations when appropriate (eg when be strong. New Community Facility to operate as a new solar panels installed at Recycling Centre built with Increased volume through regional facility MRF) grant funding. Material Recycling Facility is achieved

Promote via media, where appropriate.

N3.2 Support Tidy Towns N3.2.b Support the Tidy Towns Council provide appropriate Director – Infrastructure & Ongoing. Ongoing. Committee and other and Urban Landcare administrative support Operations Attendance held at all Tidy groups conducting committee in fulfilling its within available resources Towns Committee meeting Attendance held at all Tidy environmental awareness delegated role for Council with Agenda and minutes Towns Committee meeting Requests requiring Council programs/events undertaken as required and with Agenda and minutes determination referred to resolutions followed undertaken as required and Council meeting in a timely through. resolutions followed manner through. Minutes from all 355 committee meetings provided to Council in a timely manner.

Provide support for organising and coordination of RAFCA event.

N3.3 Investigate N3.3.a Progressively implement the Report including costs, Director – Infrastructure & External review offered by Follow up grant applications opportunities for the use of recommendations of the payback period and Operations OEH as Council is a for sustainable advantage renewable/alternative Level 2 Energy Audits, recommended action sustainable advantage audits. energy sources for Council carried out for ‘high energy submitted to Council for member. infrastructure user’ Council owned adoption. facilities and Civic Centre.

Design and estimate costs for solar panels on Council offices. N3.3.b Provide support to CLEAN Continue to work with and Director – Environmental Ongoing support provided. Ongoing. Inc support CLEAN Cowra Inc. Services

76 2015-2016 Annual Report Cowra Shire Council

Expenses & Payments Legal Proceedings

Local Government Act 1993 and General Regulation Clause 217(1)(a3)

Summary of the amounts incurred by the council in relation to legal proceedings including amounts, costs and expenses paid or received and summary of the state of progress of each legal proceeding and (if it has been finalised) result.

A summary of Council incurred legal expenses amount to $222,000 detailed below:-

Proceeding Amounts, costs, expenses paid or received Legal Expenses & Opinions $ 97,000 Legal and Land matters $ 30,000 Environmental Services $ 95,000 TOTAL 2015-2016 $ 222,000.00

No amounts, costs, or expenses were paid or received by way of out of court settlements.

Rate and Charge Write-offs

Local Government Act 1993 and General Regulation Clause 132

In accordance with Clause 132 of the Rates & Charges Regulation 1993, Council wrote-off the following rates and charges in 2015-2016.

Rates or Charges Pensioner rates abandoned — General Fund $ 194,000 Pensioner rates abandoned — Domestic Waste $ 160,025 Pensioner rates abandoned — Water Fund $ 119,710 Pensioner rates abandoned — Sewer Fund $ 80,439 TOTAL WRITE-OFFS 2015-2016 $ 554,174

77 2015-2016 Annual Report Cowra Shire Council Special Variations

Local Government Act 1993 and General Regulation Section 508(2)/(A) Report on special variation expenditure if required to do so by the instrument made by the Minister.

Cowra Shire Council has not applied to the Minister for any special variation to its general income or the amount of an annual charge for domestic waste management services under Section 508A of the Local Government Act 1993.

Section 356 Donations

Local Government Act 1993 and General Regulation Clause 217(1)(a5) Total amount contributed or otherwise granted under section 356 (financially assist others)

Under Section 356 of the Local Government Act, Council contributed money or in kind to the value of $34,962.

Contracts over $150,000

Local Government Act 1993 and General Regulation Clause 217(1)(a2) Details of each contract awarded for amounts greater than $150,000

A summary of Contracts awarded by the Council during the 2015-2016 year as a result of tender or otherwise is set out below. These contracts exclude employment contracts of service and contracts less than $150,000.

Date Department Resolution Nature of Goods/Services Name of Contractor $Exc 28 Sept 2015 Director – Infrastructure 294/15 Tender for Heavy Patching Full/Part Service Divall’s $222,799.80 & Operations Work in the Cowra Shire – Tender 4/2015 for the 2015/2016 season. 23 November Acting Director – 359/15 CENTROC Unified Communications Tender Uplinx Group $190,725 2015 Corporate Services over 5 years

23 November Director – 363/15 Purchase of side loader compactor Hartwig Trucks $384,621 2015 Infrastructure & Operations

78 2015-2016 Annual Report Cowra Shire Council Mayor and Councillors Local Government Act 1993 and General Regulation Clause 217(1)(a1)(i)-(viii) The total amount of money spent of Mayoral and Councillors Fees is paid in accordance with The Local Government Remuneration Tribunal’s report on fees to be paid to Mayors and Councillors for the 2015-2016 year.

In accordance with the Remuneration and in line with Council’s budget the total fees paid was $123,120 as set out below:-

Item Money Expended Councillor Fees $ 99,090 Mayoral Allowance $ 24,030 TOTAL 2015-2016 $ 123,120 Overseas Visits Local Government Act 1993 and General Regulation Section 428(4)(b), clause 217(1)(a)(i) Details of overseas visits by councillors, council staff or other persons representing council (including visits sponsored by other organisations).

During 2015-2016 there were no overseas trips by members representing Council.

Mayoral & Councillors Expenses Local Government Act 1993 and General Regulation Clauses 217(1)(a1) (i)- (viii) Total cost during the year of the payment of expenses of, and the provision of facilities to, councillors in relation to their civic functions, including separate details on the total cost paid

In accordance with Council’s policy on payment of expenses and the provision of facilities to the Mayor and Councillors, access and use of a room suitably furnished with appropriate office equipment is provided for use by all Councillors. As required by Section 428(2)(f), clause 217(1)(a1)(i)-(viii), Council incurred the following expenses during the 2015-2016 financial year:-

Item Money Expended Telephone & Facsimile $ 9,829 Conferences/Seminars $ 11,293 Training and Skill Development $ 0 Interstate Visits (transport, accommodation, and out-of-pocket expenses) $ 0 Overseas Visits (transport, accommodation & and out-of-pocket expenses) $ 0 Spousal Expenses $ 216 Carers Expenses $ 0 Civic Function Expenses $ 5,354 TOTAL 2015-2016 $ 26,692

79 2015-2016 Annual Report Cowra Shire Council

Environment State of Environment Report

Local Government Act 1993 and General Regulation Section 428A(1) The annual report of a council in the year in which an ordinary election of councillors is to be held must include a report as to the state of the environment in the local government area in relation to such environmental issues as may be relevant to the objectives for the environment established by the community strategic plan.

Cowra Shire Council continues to participate in the development of Annual Regional State of the Environment Report including data relating to Cowra Shire Council. The 2016 Annual Regional State of the Environment Report will be made available on Council’s website. Environmental Planning & Assessment Act 1979 Section 93G(5)

Particulars of compliance with and effect of planning agreements in force during the year in accordance with the Environmental Planning and Assessment Act 1979 are as follows:-

No Environmental Planning Agreements were entered into during 2015-2016.

Environmental Upgrade Agreements

Local Government Act 1993 and General Regulation Section 54P Particulars of any environmental upgrade agreement entered into, in accordance with any requirements imposed under s406 are as follows:

No Environmental Upgrade Agreements were entered into during 2015-2016.

Fisheries Management

Fisheries Management Act 1994 Recovery and threat abatement plans – Councils identified n a plan as responsible for implementation of measure included in the plan, to report on actions taken to implement measures as to the state of the environment in its area.

No Recovery plans or threat abatement plans 2015-2016.

80 2015-2016 Annual Report Cowra Shire Council Division 5 Recovery plans and threat abatement plan

Section 220ZS Ministers and public authorities to implement recover and threat abatement plans Public authorities are to take any appropriate action available to them to implement measures included in a plan for which they are responsible and must not make decision s that are inconsistent with the provisions of a plan

Section 220ZT (2) Public authorities to report on implementation of recovery and threat abatement plans A local council identified in a plan as responsible for the implementation of measures included in the plan must report to action taken by it to implement those measures in its annual report as to the state of the environment of its area.

Section 220ZU (1) – Notification of, and consultation concerning, proposed departures for recovery or threat abatement plan A public authority must not exercise a function in a manner that is inconsistent with the implementation of measures included in a plan unless the public authority has given notice of the propped exercise of the function to the Director –General.

Stormwater Management

Local Government Act 1993 and General Regulation Clause 217(1)(e) A statement detailing the stormwater management services provided (if levied)

Council does not charge a stormwater levy. There is no statement required for stormwater management services.

81 2015-2016 Annual Report Cowra Shire Council

Companion Animals

Companion Animals Act 1998 and Companion Animals Regulation 2008 Clause 217 (1) (f) Guidelines 16.2 (a)(f) Statement on activities relating to enforcing and ensuring compliance with the Companion Animals Act and Regulation

Council is required to publish a Statement on activities relating to enforcing and ensuring compliance with the Companion Animals Act and Regulation and accordingly provides the following information.

Pound Data Collection Council has completed its Survey of Council Seizure of Cats and Dogs 2015/2016 on the Companion Animals Register.

Dog Attacks Council lodged 65 dog attack notifications during 2015/2016 financial year to the Department of Local Government.

Management and Activities Council’s budgeted expenditure on Companion Animals management and activities for 2015/2016 was $239,396. This included all activities related to Companion Animals including impounding and regulatory control, maintenance and running of the pound, advertising of companion animal related matters and microchipping pound animals suitable for re-homing.

Community Education Programs A community education program was run in local newspapers throughout the year. Council developed an information brochure relating to dog control in the shire and completed a mail out of this brochure to all residential addresses in the shire. Council also made available information on Companion Animals on Council’s website and at its Administration Centre.

Cowra Council was successful in receiving grant funding for the Responsible Pet Ownership Grants Program – Stage 2. The grant assisted Council with conducting an education program, which included:

 Holding a responsible dog ownership event on 7 May 2016 for Cowra Shire residents to promote awareness of the rights and responsibilities of owning a dog. The event involved professional dog trainers providing information on dog behaviour, a free sausage sizzle, lucky door prizes, free doggy bags and giveaway prizes. Approximately 90 people attended the event;

 Undertaking advertising in local media and producing education materials on responsible dog ownership;

82 2015-2016 Annual Report Cowra Shire Council  Designing a brochure called ‘Don’t let the dogs out!’ outlining key areas of responsible dog ownership. This brochure was delivered to every residence in the Cowra Shire.

The education program was very successful in assisting Cowra Council in promoting awareness of responsible dog ownership in the Cowra Shire area.

Desexing Council makes available information on desexing of Companion Animals periodically in local newspapers and Cowra Council’s Website throughout the year and at its Administration Centre. Council takes action to ensure that all dangerous and restricted breed dogs are desexed.

Unclaimed Animals Council has in place an “Adopt a Pound Pet” Program which aims to reduce the euthanasia of Companion Animals that are brought to the pound with no identification. Pound Animals that are adopted are microchipped by Council to reduce the cost of registration by the new owner. In addition, Council advertises throughout the year in the local newspaper, Council’s Facebook page, Council’s Twitter page and on Council’s website, lost animals and animals that are ready for re-homing.

Off-leash Areas Council currently has two off-leash dog exercise areas located at Sakura Reserve and Bill Robinson Park, Cowra.

Management and Control Funds The Companion Animals Fund received $8,220.80 during 2015/2016 from Cowra Council for Companion Animal Registrations. Cowra Council received a reimbursement of $11,862.00 from the Companion Animals fund during that period.

83 2015-2016 Annual Report Cowra Shire Council Council Works & Services

Private Works

Local Government Act 1993 and General Regulation Section 67(3), clause 217(1)(a4) Summary of resolutions made under section 67 concerning work carried out on private land.

No resolutions were passed during the 2015/2016 with regards to Section 67 works carried out.

Council applies the following policies with regard to charging for these private works:

Plant Hire Rates — Reviewed annually. Internal plant hire rates plus 20 per cent. Labour — Actual costs including 36.9 per cent for on-costs plus 20 per cent. Materials — Actual costs plus 20 per cent

Capital Works

Local Government Act 1993 and General Regulation - Capital Expenditure Guidelines Report on capital works projects.

Note 9a in the Annual Financial Statements provides details of infrastructure, property, plant and equipment.

84 2015-2016 Annual Report Cowra Shire Council

Carers Recognition

Carers Recognition Act 2010 Section 8(2) Councils considered to be ‘human service agencies’ under the Act (i.e. councils that provide services directed at carers and/or people being cared for by carers) must report on compliance with the Act for the reporting period in their Annual Report. Council does not provide services directed at carers and/or people being cared for by people.

Disability Inclusion Act 2014

Disability Inclusion Act 2014 Section 13(1) Information on the implementation of council’s Disability Inclusion Plan.

Division 3 Disability inclusion action plans Section 12(1) Requirement for disability inclusion action plans

Each public authority must, from the day prescribed by the regulations, have a plan (a disability inclusion action plan) setting out the measures it intends to put in place (in connection with the exercise of its functions) so that people with disability can access general supports and services available in the community, and can participate fully in the community.

Section 13 (1) Report on implementation of plans A public authority that is a government department or local council must, as soon as practicable after preparing its annual report, give the Minister a copy of the part of the annual report relating to the department’s or council’s report on the implementation of its disability inclusion action plan.

Section 14 (1) Review of plans A public authority must review its disability inclusion action plan before the end of each 4-year period after the day the authority is required to have the plan.

85 2015-2016 Annual Report Cowra Shire Council Council Employment General Manager

Local Government Act 1993 and General Regulation Clause 217(1)(b)(i)-(v) Statement of the total remuneration comprised in the remuneration package of the general manager.

During the year, one senior staff member was employed by Council. The total remuneration comprised in the remuneration package for the senior staff member for the 2015-2016 period was $214,780 including:

Total value of salary component of package Total amount of any bonus payments, performance or other payments that do not form part of the salary component Total amount payable by way of the employer’s contribution or salary sacrifice to any superannuation scheme to which the General Manager may be a contributor Total value non-cash benefits for which the general manager may elect under the package Total amount payable by way of fringe benefits tax for such non-cash benefits

Equal Employment Opportunity

Local Government Act 1993 and General Regulation Clause 217(1)(a9) Statement of activities to implement its EEO Management Plan

During 2015-2016, Council continued its commitment to the principles of EEO through its established Management Plan.

It is the policy of Cowra Shire Council to ensure that the talents and resources of all employees are utilised fully and that no job applicant, or employee, receive less than favourable treatment on the grounds of sex, marital status, pregnancy, race, religious or political conviction, or disadvantaged by conditions or requirements which cannot be shown to be relevant to performance. In addition, Council is committed to promoting equal employment opportunity for all of its employees.

Council works to achieve the following aims:-

To monitor and support the application of the above policy, relevant state and federal legislation, and Equal Employment Opportunity principles generally, to all aspects of the work environment at Cowra Shire Council. To provide a representative staff forum, able to raise and discuss issues relevant to Equal Employment Opportunity at Cowra Shire Council, and to assist in the formation of policies to resolve such issues. To meet the requirements of the Local Government Act 1993.

86 2015-2016 Annual Report Cowra Shire Council

Organisations & Companies

External Bodies — Delegation

Local Government Act 1993 and General Regulation Clause 217(1)(a6) Statement of all external bodies that exercised functions delegated by council During the period 2015-2016, no external bodies exercised functions delegated by the Council.

Controlling Interests in Companies

Local Government Act 1993 and General Regulation Clause 217(1)(a7) Statement of all corporations, partnerships, trusts, joint ventures, syndicates or other bodies in which council held a controlling interest. During the period 2015-2016, Council held no controlling interest in any companies

Co-Operatives, Partnerships, Joint Ventures

Local Government Act 1993 and General Regulation Clause 217(1)(a8)

During the year, Council continued its joint venture arrangements with the Councils of Orange, Cabonne, Blayney, and Forbes for the provision of a regional library service known as Central West Libraries.

87 2015-2016 Annual Report Cowra Shire Council

Public Information

Public Interest Disclosure

Public Interest Disclosure ACT 1994 and Regulation Section 31 Clause 4 Councils must prepare an annual report on the public authority’s obligations under the Act for submission to the Minister responsible for the public authority. A copy of the report is to be provided to the ombudsman. There were no public interest disclosures during 2015-2016.

Government Information (Public Access)

Information included on GIPA activity

Government Information (Public Access) Act 2009 - Sect 125 (1) Each agency (other than a Minister) must, within 4 months after the end of each reporting year, prepare an annual report on the agency’s obligations under this Act for submission to the Minister responsible for the agency. A copy of the report is to be provided to the Information Commissioner. A report was submitted to the Information & Privacy Commissioner on 4 November 2015.

Government Information (Public Access) Regulation 2009 Clause 7 Schedule 2 (a) details of the review carried out by the agency under section 7 (3) of the Act during the reporting year and the details of any information made publicly available by the agency as a result of the review, No reviews were carried out during 2015-2016. (b) the total number of access applications received by the agency during the reporting year (including withdrawn applications but not including invalid applications), In 2015-2016, Cowra Shire Council received 15 applications GIPA applications. No applications were specifically withdrawn during the year. (c) the total number of access applications received by the agency during the reporting year that the agency refused, either wholly or partly, because the application was for the disclosure of information referred to in Schedule 1 to the Act (Information for which there is conclusive presumption of overriding public interest against disclosure), Note. Table D in Schedule 2 also requires information relating to access applications in respect of which there is a conclusive presumption of overriding public interest against disclosure.

Number of Applications Refused Wholly Partly Total 6 6 0 6

No applications were considered to have an overriding public interest against disclosure.

88 2015-2016 Annual Report Cowra Shire Council

Clause 7(d) GIPA Regulation — Schedule 2

(d) The Act requires under clause (d) information, as set out in the form required by the tables in Schedule 2, relating to the access applications (if any) made to the agency during the reporting year. This information is as set out below:- Schedule 2 Statistical information about access applications to be included in annual report (Clause 7) Table A: Number of applications by type of applicant and outcome* Access granted Access granted in Access refused in Information not held Information Refuse to Refuse to Application in full part full already available deal with confirm/ withdrawn application deny whether information is held Media 0 0 0 0 0 0 0 0 Members of 0 0 0 0 0 0 0 0 Parliament Private sector 0 0 0 0 0 0 0 0 business Not for profit 0 0 0 0 0 0 0 0 organisations or community groups Members of the 2 0 0 1 0 0 0 0 public (application by legal representative) Members of the 5 1 0 0 0 6 0 0 public (other) * More than one decision can be made in respect of a particular access application. If so, a recording must be made in relation to each such decision. This also applies to Table B.

Table B: Number of applications by type of application and outcome

Access Access granted Access refused Information not held Information already Refuse to deal with Refuse to confirm/deny Application withdrawn granted in in part in full available application whether information is held full Personal 3 0 0 0 0 0 0 0 information applications* Access applications 4 1 0 1 0 6 0 0 (other than personal information applications) Access applications 0 0 0 0 0 0 0 0 that are partly personal information applications and partly other * A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an individual).

89 2015-2016 Annual Report Cowra Shire Council

Table C: Invalid applications Reason for invalidity No of applications Application does not comply with formal requirements (section 41 of the Act) 0 Application is for excluded information of the agency (section 43 of the Act) 0 Application contravenes restraint order (section 110 of the Act) 0

Total number of invalid applications received 0 Invalid applications that subsequently became valid applications 0

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 to Act Number of times consideration used* Overriding secrecy laws 0 Cabinet information 0 Executive Council information 0 Contempt 0 Legal professional privilege 0 Excluded information 0 Documents affecting law enforcement and public safety 0 Transport safety 0 Adoption 0 Care and protection of children 0 Ministerial code of conduct 0 Aboriginal and environmental heritage 0

* More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be recorded (but only once per application). This also applies in relation to Table E.

Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of Act Number of occasions when application not successful Responsible and effective government 0 Law enforcement and security 0 Individual rights, judicial processes and natural justice 0 Business interests of agencies and other persons 0 Environment, culture, economy and general matters 0 Secrecy provisions 0 Exempt documents under interstate Freedom of Information legislation 0

90 2015-2016 Annual Report Cowra Shire Council

Table F: Timeliness Number of applications Decided within the statutory timeframe (20 working days plus any extensions) 10 Decided after 35 days (by agreement with applicant) 0 Not decided within time (deemed refusal) 5 Total

Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome) Decision varied Decision upheld Total Internal review 0 0 0 Review by Information Commissioner* 6 0 6 Internal review following recommendation under section 93 of Act 0 0 0 Review by ADT 0 0 0 Total

* The Information Commissioner does not have the authority to vary decisions, but can make recommendations to the original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made by the Information Commissioner.

Table H: Applications for review under Part 5 of the Act (by type of applicant) Number of applications for review Applications by access applicants 0 Applications by persons to whom information the subject of access application relates (see section 54 of the Act) 2

Table I: Applications transferred to other agencies under Division 2 of Part 4 of the Act (by type of transfer) Number of applications transferred Agency-initiated transfers 0 Applicant-initiated transfers 0

GIPA Act and Regulation mandatory reporting requirements

Cowra Shire Council is committed to the provision of an open system of Government where every attempt is made to provide members of the public access to the decision making process of the Council. In view of this attitude, and wherever possible, documents are provided to an applicant without charge under Council’s normal practices.

91 2015-2016 Annual Report Cowra Shire Council

Finance

Financial Report

Local Government Act 1993 and General Regulation Section 428(4)(a) Copy of council’s audited financial reports and notes and information required by the Regulation or the Guidelines.

The Council’s audited Financial Statements for the year ended 30 June 2015 are presented on the following pages.

For an overview of the content of the statements, readers are advised to refer to the Auditors Report in the body of the statements which isolates the salient points to be made in respect of the results.

Cowra Shire Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2016

“A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living” Financial Statements 2016

Cowra Shire Council

General Purpose Financial Statements for the year ended 30 June 2016

Contents Page

1. Understanding Council’s Financial Statements 2

2. Statement by Councillors and 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

(i) These financial statements are General Purpose Financial Statements and cover the operations for Cowra Shire Council.

(ii) Cowra Shire 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 1993 (LGA).

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

 the ability to provide goods, services and facilities, and to carry out activities appropriate to the current and 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 25 October 2016. Council has the power to amend and reissue these financial statements.

page 1

Financial Statements 2016_

Cowra Shire Council

General Purpose Financial Statements for the year ended 30 June 2016

Understanding Council’s financial statements

Introduction 4. The Statement of Changes in Equity

The overall change for the year (in dollars) of Each year, individual local governments across New Council’s ‘net wealth’. South Wales are required to present a set of audited financial statements to their council and community. 5. The Statement of Cash Flows

What you will find in the statements This statement indicates where Council’s cash came from and where it was spent. This statement also The financial statements set out the financial displays Council’s original adopted budget to provide performance, financial position and cash flows of a comparison between what was projected and what Council for the financial year ended 30 June 2016. actually occurred.

The format of the financial statements is standard About the Notes to the Financial Statements across all NSW Councils and complies with both the accounting and reporting requirements of Australian The Notes to the Financial Statements provide Accounting Standards and requirements as set greater detail and additional information on the five down by the Office of Local Government. primary financial statements.

About the Councillor/Management Statement About the Auditor’s Reports

The financial statements must be certified by senior Council’s financial statements are required to be staff as ‘presenting fairly’ the Council’s financial audited by external accountants (that generally results for the year, and are required to be adopted specialise in local government). In NSW, the auditor by Council – ensuring both responsibility for and provides 2 audit reports: ownership of the financial statements. 1. An opinion on whether the financial statements About the primary financial statements present fairly the Council’s financial performance and position, and The financial statements incorporate five ‘primary’ financial statements: 2. Their observations on the conduct of the audit, including commentary on the Council’s financial 1. The Income Statement performance and financial position.

This statement summarises Council’s financial Who uses the financial statements? performance for the year, listing all income and expenses. The financial statements are publicly available documents and must be presented at a Council This statement also displays Council’s original meeting between seven days and five weeks after adopted budget to provide a comparison between the date of the Audit Report. what was projected and what actually occurred. The public can make submissions to Council up to 2. The Statement of Comprehensive Income seven days subsequent to the public presentation of This statement primarily records changes in the fair the financial statements. values of Council’s infrastructure, property, plant and equipment. Council is required to forward an audited set of financial statements to the Office of Local 3. The Statement of Financial Position Government.

An end of year snapshot of Council’s financial position indicating its assets, liabilities and equity (‘net wealth’).

page 2

Financial Statements 2016

Cowra Shire Council

Income Statement for the year ended 30 June 2016

Budget 1 Actual Actual 2016 $ ’000 Notes 2016 2015

Income from continuing operations Revenue: 12,708 Rates and annual charges 3a 12,096 11,749 11,141 User charges and fees 3b 12,876 13,677 534 Interest and investment revenue 3c 765 811 926 Other revenues 3d 829 1,329 6,729 Grants and contributions provided for operating purposes 3e,f 7,330 6,423 839 Grants and contributions provided for capital purposes 3e,f 638 488 Other income: 280 Net gains from the disposal of assets 5 144 235 Net share of interests in joint ventures and – associates using the equity method 19 – –

33,157 Total income from continuing operations 34,678 34,712

Expenses from continuing operations 11,723 Employee benefits and on-costs 4a 12,862 12,729 1,376 Borrowing costs 4b 1,361 1,434 9,019 Materials and contracts 4c 8,746 8,539 5,733 Depreciation and amortisation 4d 6,197 5,886 – Impairment 4d – – 2,866 Other expenses 4e 3,220 3,187

30,717 Total expenses from continuing operations 32,386 31,775

2,440 Operating result from continuing operations 2,292 2,937

Discontinued operations

– Net profit/(loss) from discontinued operations 24 – –

2,440 Net operating result for the year 2,292 2,937

2,440 Net operating result attributable to Council 2,292 2,937 – Net operating result attributable to non-controlling interests – –

Net operating result for the year before grants and 1,601 contributions provided for capital purposes 1,654 2,449

1 Original budget as approved by Council – refer Note 16

This statement should be read in conjunction with the accompanying notes. page 4 Financial Statements 2016

Cowra Shire Council

Statement of Comprehensive Income for the year ended 30 June 2016

Actual Actual $ ’000 Notes 2016 2015

Net operating result for the year (as per Income Statement) 2,292 2,937

Other comprehensive income:

Amounts which will not be reclassified subsequently to the operating result

Gain (loss) on revaluation of I,PP&E 20b (ii) (13,608) (14,625) Total items which will not be reclassified subsequently to the operating result (13,608) (14,625)

Amounts which will be reclassified subsequently to the operating result when specific conditions are met Nil

Total other comprehensive income for the year (13,608) (14,625)

Total comprehensive income for the year (11,316) (11,688)

Total comprehensive income attributable to Council (11,316) (11,688) Total comprehensive income attributable to non-controlling interests – –

This statement should be read in conjunction with the accompanying notes. page 5 Financial Statements 2016

Cowra Shire Council

Statement of Financial Position as at 30 June 2016

Actual Actual $ ’000 Notes 2016 2015

ASSETS Current assets Cash and cash equivalents 6a 4,270 4,638 Investments 6b 18,000 14,000 Receivables 7 3,450 3,899 Inventories 8 913 1,195 Other 8 – 175 Non-current assets classified as ‘held for sale’ 22 – – Total current assets 26,633 23,907

Non-current assets Investments 6b – – Receivables 7 63 – Inventories 8 195 – Infrastructure, property, plant and equipment 9 575,302 588,296 Investments accounted for using the equity method 19 – – Investment property 14 – – Intangible assets 25 – – Other 8 174 – Total non-current assets 575,734 588,296 TOTAL ASSETS 602,367 612,203

LIABILITIES Current liabilities Payables 10 2,748 2,509 Borrowings 10 1,185 1,007 Provisions 10 4,283 4,114 Total current liabilities 8,216 7,630

Non-current liabilities Payables 10 – – Borrowings 10 19,219 18,274 Provisions 10 455 506 Total non-current liabilities 19,674 18,780 TOTAL LIABILITIES 27,890 26,410 Net assets 574,477 585,793

EQUITY Retained earnings 20 177,989 175,697 Revaluation reserves 20 396,488 410,096 Council equity interest 574,477 585,793 Non-controlling equity interests – – Total equity 574,477 585,793

This statement should be read in conjunction with the accompanying notes. page 6 Financial Statements 2016

Cowra Shire Council

Statement of Changes in Equity for the year ended 30 June 2016

Non- Retained Reserves Council controlling Total $ ’000 Notes earnings (Refer 20b) interest Interest equity

2016 Opening balance (as per last year’s audited accounts) 175,931 410,096 586,027 – 586,027 a. Correction of prior period errors 20 (c) (234) – (234) – (234) b. Changes in accounting policies (prior year effects) 20 (d) – – – – – Revised opening balance (as at 1/7/15) 175,697 410,096 585,793 – 585,793 c. Net operating result for the year 2,292 – 2,292 – 2,292 d. Other comprehensive income – Revaluations: IPP&E asset revaluation rsve 20b (ii) – (13,608) (13,608) – (13,608) – Revaluations: other reserves 20b (ii) – – – – – – Transfers to Income Statement 20b (ii) – – – – – – Impairment (loss) reversal relating to I,PP&E 20b (ii) – – – – – – Joint ventures and associates 19b – – – – – Other comprehensive income – (13,608) (13,608) – (13,608)

Total comprehensive income (c&d) 2,292 (13,608) (11,316) – (11,316) e. Distributions to/(contributions from) non-controlling Interests – – – – – f. Transfers between equity – – – – –

Equity – balance at end of the reporting period 177,989 396,488 574,477 – 574,477

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

2015 Opening balance (as per last year’s audited accounts) 172,994 424,721 597,715 – 597,715 a. Correction of prior period errors 20 (c) (234) – (234) – (234) b. Changes in accounting policies (prior year effects) 20 (d) – – – – – Revised opening balance (as at 1/7/14) 172,760 424,721 597,481 – 597,481 c. Net operating result for the year 2,937 – 2,937 – 2,937 d. Other comprehensive income – Revaluations: IPP&E asset revaluation rsve 20b (ii) – (14,625) (14,625) – (14,625) – Revaluations: other reserves 20b (ii) – – – – – – Transfers to Income Statement 20b (ii) – – – – – – Impairment (loss) reversal relating to I,PP&E 20b (ii) – – – – – – Joint ventures and associates 19b – – – – – Other comprehensive income – (14,625) (14,625) – (14,625)

Total comprehensive income (c&d) 2,937 (14,625) (11,688) – (11,688) e. Distributions to/(contributions from) non-controlling Interests – – – – – f. Transfers between equity – – – – –

Equity – balance at end of the reporting period 175,697 410,096 585,793 – 585,793

This statement should be read in conjunction with the accompanying notes. page 7 Financial Statements 2016

Cowra Shire Council

Statement of Cash Flows for the year ended 30 June 2016

Budget Actual Actual 2016 $ ’000 Notes 2016 2015

Cash flows from operating activities Receipts: 12,708 Rates and annual charges 12,169 11,900 11,642 User charges and fees 14,234 14,001 534 Investment and interest revenue received 680 759 7,066 Grants and contributions 7,801 7,204 927 Other 2,045 2,324 Payments: (11,526) Employee benefits and on-costs (12,815) (12,460) (9,019) Materials and contracts (9,621) (9,358) (1,376) Borrowing costs (1,342) (1,416) – Bonds, deposits and retention amounts refunded (4) (277) (2,866) Other (4,185) (3,340) 8,090 Net cash provided (or used in) operating activities 11b 8,962 9,337

Cash flows from investing activities Receipts: – Sale of investment securities 14,000 2,000 281 Sale of infrastructure, property, plant and equipment 338 579 58 Deferred debtors receipts 34 34 Payments: – Purchase of investment securities (18,000) (14,000) (6,916) Purchase of infrastructure, property, plant and equipment (6,812) (6,920) – Deferred debtors and advances made (13) – (6,577) Net cash provided (or used in) investing activities (10,453) (18,307)

Cash flows from financing activities Receipts: 120 Proceeds from borrowings and advances 2,129 – Payments: (1,011) Repayment of borrowings and advances (1,006) (1,061) (891) Net cash flow provided (used in) financing activities 1,123 (1,061)

622 Net increase/(decrease) in cash and cash equivalents (368) (10,031)

18,638 Plus: cash and cash equivalents – beginning of year 11a 4,638 14,669

19,260 Cash and cash equivalents – end of the year 11a 4,270 4,638

Additional Information:

plus: Investments on hand – end of year 6b 18,000 14,000 Total cash, cash equivalents and investments 22,270 18,638

Please refer to Note 11 for information on the following: – Non-cash financing and investing activities – Financing arrangements – Net cash flow disclosures relating to any discontinued operations

This statement should be read in conjunction with the accompanying notes. page 8 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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 21 2(b) Council functions/activities – component descriptions 22 3 Income from continuing operations 23 4 Expenses from continuing operations 28 5 Gains or losses from the disposal of assets 30 6(a) Cash and cash equivalent assets 31 6(b) Investments 31 6(c) Restricted cash, cash equivalents and investments – details 32 7 Receivables 34 8 Inventories and other assets 35 9(a) Infrastructure, property, plant and equipment 37 9(b) Externally restricted infrastructure, property, plant and equipment 38 9(c) Infrastructure, property, plant and equipment – current year impairments 38 n/a 10(a) Payables, borrowings and provisions 39 10(b) Description of (and movements in) provisions 40 11 Statement of cash flows – additional information 41 12 Commitments for expenditure 42 13 Statement of performance measures: 13a (i) Local government industry indicators (consolidated) 43 13a (ii) Local government industry graphs (consolidated) 44 13b Local government industry indicators (by fund) 46 14 Investment properties 47 n/a 15 Financial risk management 47 16 Material budget variations 51 17 Statement of developer contributions 53 18 Contingencies and other liabilities/assets not recognised 55 19 Interests in other entities 57 Retained earnings, revaluation reserves, changes in accounting 20 59 policies, changes in accounting estimates and errors

21 Financial result and financial position by fund 61 22 ‘Held for sale’ non-current assets and disposal groups 63 n/a 23 Events occurring after the reporting date 63 n/a 24 Discontinued operations 63 n/a 25 Intangible assets 63 n/a 26 Reinstatement, rehabilitation and restoration liabilities 64 27 Fair value measurement 65

Additional council disclosures

28 Council information and contact details 77

n/a – not applicable

page 9

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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 and 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 have been no new accounting standards adopted in this year’s financial statements which have had any material impact on reported financial (a) Basis of preparation position, performance or cash flows.

(i) Background (iv) Early adoption of accounting standards

These financial statements are general purpose Council has not elected to apply any financial statements, which have been prepared in pronouncements before their operative date in the accordance with: annual reporting period beginning 1 July 2015, except for AASB2015-7 Amendments to Australian . Australian Accounting Standards and Australian Accounting Standards – Fair Value Disclosures of Accounting Interpretations issued by the Not-for-Profit Public Sector Entities, which has Australian Accounting Standards Board, reduced the fair value disclosures for Level 3 assets.

. the Local Government Act (1993) and (v) Basis of accounting Regulations, and These financial statements have been prepared . the Local Government Code of Accounting under the historical cost convention except for: Practice and Financial Reporting. (i) certain financial assets and liabilities at fair For the purpose of preparing these financial value through profit or loss and available-for- statements, Council has been deemed to be a not- sale financial assets, which are all valued at fair for-profit entity. value,

(ii) Compliance with International Financial (ii) the write down of any asset on the basis of Reporting Standards (IFRSs) impairment (if warranted), and

Because AASBs are sector neutral, some standards (iii) certain classes of non-current assets (eg. either: infrastructure, property, plant and equipment and investment property) that are accounted for (a) have local Australian content and at fair valuation. prescription that is specific to the not-for- profit sector (including local government) The accrual basis of accounting has also been which are not in compliance with IFRSs, or applied in their preparation.

(b) specifically exclude application by not-for- (vi) Changes in accounting policies profit entities. Council’s accounting policies have been consistently Accordingly, in preparing these financial statements applied to all the years presented, unless otherwise and accompanying notes, Council has been unable stated. to comply fully with International Accounting Standards, but has complied fully with Australian There have also been no changes in accounting Accounting Standards. policies when compared with previous financial statements unless otherwise stated [refer Note 20 (d)].

page 10

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

(vii) Critical accounting estimates Control over granted assets/contributed assets is normally obtained upon their receipt (or acquittal) or The preparation of financial statements requires the upon earlier notification that a grant has been use of certain critical accounting estimates (in secured, and is valued at their fair value at the date conformity with AASBs). of transfer.

Accordingly this requires management to exercise its Revenue from contributions is recognised when the judgement in the process of applying the Council's Council obtains control of the contribution or the right accounting policies. to receive it, it is probable that the economic benefits comprising the contribution will flow to the Council Estimates and judgements are continually evaluated and the amount of the contribution can be measured and are based on historical experience and other reliably. factors, including expectations of future events that may have a financial impact on Council and that are Where grants or contributions recognised as believed to be reasonable under the circumstances. revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those (b) Revenue recognition conditions were undischarged at balance date, the unused grant or contribution is disclosed in Note 3 Council recognises revenue when the amount of (g). revenue can be reliably measured, it is probable that future economic benefits will flow to it, and specific Note 3 (g) also discloses the amount of unused grant criteria have been met for each of the Council’s or contribution from prior years that was expended activities as described below. on Council’s operations during the current year.

Council bases any estimates on historical results, The Council has obligations to provide facilities from taking into consideration the type of customer, the contribution revenues levied on developers under the type of transaction and the specifics of each provisions of s94 of the EPA Act 1979. arrangement. Whilst Council generally incorporates these amounts Revenue is measured at the fair value of the as part of a Development Consents Order, such consideration received or receivable. developer contributions are only recognised as income upon their physical receipt by Council, due to Revenue is measured on major income categories the possibility that individual development consents as follows: may not be acted upon by the applicant and accordingly would not be payable to Council. Rates, Annual Charges, Grants and Contributions Developer contributions may only be expended for the purposes for which the contributions were Rates, annual charges, grants and contributions required but the Council may apply contributions (including developer contributions) are recognised according to the priorities established in work as revenues when the Council obtains control over schedules. the assets comprising these receipts. A detailed note relating to developer contributions Control over assets acquired from rates and annual can be found at Note 17. charges is obtained at the commencement of the rating year as it is an enforceable debt linked to the User charges, fees and other Income rateable property or, where earlier, upon receipt of the rates. User charges, fees and other income (including parking fees and fines) are recognised as revenue A provision for the impairment on rates receivables when the service has been provided, the payment is has not been established as unpaid rates represent received, or when the penalty has been applied, a charge against the rateable property that will be whichever first occurs. recovered when the property is next sold.

page 11

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

A provision for the impairment of these receivables functions have been included in the financial is recognised when collection in full is no longer statements forming part of this report. probable. The following entities have been included as part of A liability is recognised in respect of revenue that is the consolidated fund: reciprocal in nature to the extent that the requisite service has not been provided as at balance date. . General Purpose Operations . Cowra Shire Council Water Supply Fund Sale of infrastructure, property, plant and . Cowra Shire Council Sewer Fund equipment . Cowra Shire Council Waste Fund

The profit or loss on sale of an asset is determined (ii) The trust fund when control of the asset has irrevocably passed to the buyer. In accordance with the provisions of section 411 of the Local Government Act 1993 (as amended), a Interest and rents separate and distinct trust fund is maintained to account for all money and property received by the Rental income is accounted for on a straight-line Council in trust that must be applied only for the basis over the lease term. purposes of or in accordance with the trusts relating to those monies. Interest income from cash and investments is accounted for using the effective interest rate at the Trust monies and property subject to Council’s date that interest is earned. control have been included in these statements.

Dividend income Trust monies and property held by Council but not subject to the control of Council have been excluded Revenue is recognised when the Council’s right to from these statements. receive the payment is established, which is generally when shareholders approve the dividend. A separate statement of monies held in the trust fund is available for inspection at the Council office by any Other Income person free of charge.

Other income is recorded when the payment is due, (iii) Interests in other entities the value of the payment is notified or the payment is received, whichever occurs first. Subsidiaries

Council has no interest in any subsidiaries. (c) Principles of consolidation Joint arrangements These consolidated financial statements include the financial position and performance of controlled Council has no material interest in any joint entities from the date on which control is obtained arrangements. until the date that control is lost. Associates (i) The Consolidated Fund Council has no interest in any associates. In accordance with the provisions of section 409(1) of the LGA 1993, all money and property received by County councils Council is held in the Council’s consolidated fund unless it is required to be held in the Council’s trust Council is not a member of any county councils. fund.

The consolidated fund and other entities through which the Council controls resources to carry on its

page 12

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

Unconsolidated structured entities (i) Loans and receivables

Council has no interest in any unconsolidated Loans and receivables are non-derivative financial structured entities. assets with fixed or determinable payments that are not quoted in an active market.

(d) Leases They are included in current assets, except for those with maturities greater than 12 months after the All leases entered into by Council are operating balance sheet date, which are classified as non- leases. current assets.

Operating Leases General accounting and measurement of financial instruments: Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are (i) Initial recognition classified as operating leases. Investments are initially recognised (and measured) Payments made under operating leases (net of any at fair value, plus in the case of investments not at incentives received from the lessor) are charged to ‘fair value through profit or loss’, directly attributable the income statement on a straight-line basis over transactions costs. the period of the lease. Purchases and sales of investments are recognised Lease income from operating leases is recognised in on trade-date – the date on which the Council income on a straight-line basis over the lease term. commits to purchase or sell the asset.

Financial assets are derecognised when the rights to (e) Cash and Cash Equivalents receive cash flows from the financial assets have expired or have been transferred and the Council has For Statement of Cash Flows (and Statement of transferred substantially all the risks and rewards of Financial Position) presentation purposes, cash and ownership. cash equivalents includes; (ii) Subsequent measurement

. cash on hand, Loans and receivables investments are carried at . deposits held at call with financial institutions, amortised cost using the effective interest method.

. other short-term, highly liquid investments with (iii) Types of investments original maturities of three months or less that are readily convertible to known amounts of cash Council has an approved Investment Policy in order and that are subject to an insignificant risk of to invest in accordance with (and to comply with) changes in value, and section 625 of the Local Government Act and s212 of the LG (General) Regulation 2005. . bank overdrafts.

Investments are placed and managed in accordance Bank overdrafts are shown within borrowings in with the policy and having particular regard to current liabilities on the balance sheet but are authorised investments prescribed under the incorporated into cash and cash equivalents for Ministerial Local Government Investment Order. presentation of the Cash Flow Statement.

Council maintains its Investment Policy in

compliance with the Act and ensures that it or its (f) Investments and other financial assets representatives exercise care, diligence and skill that a prudent person would exercise in investing Council Council (in accordance with AASB 139) classifies all funds. of its investments as Loans and Receivables.

page 13

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

Council amended its policy following revisions to the Cost comprises direct materials, direct labour and an Ministerial Local Government Investment Order appropriate proportion of variable and fixed overhead arising from the Cole Inquiry recommendations. expenditure, the latter being allocated on the basis of normal operating capacity. (g) Receivables Costs are assigned to individual items of inventory on Receivables are initially recognised at fair value and the basis of weighted average costs. subsequently measured at amortised cost, less any provision for impairment. Net realisable value is the estimated selling price in the ordinary course of business less the estimated Receivables (excluding rates and annual charges) costs of completion and the estimated costs are generally due for settlement no more than 30 necessary to make the sale. days from the date of recognition. Inventories held in respect of non-business The collectibility of receivables is reviewed on an undertakings have been valued at cost subject to ongoing basis. Debts that are known to be adjustment for loss of service potential. uncollectible are written off in accordance with Council’s policy. (ii) Inventory held for distribution

A provision for impairment (i.e. an allowance Inventory held for distribution is held at cost, adjusted account) relating to receivables is established when where applicable for any loss of service potential. objective evidence shows that Council will not be able to collect all amounts due according to the (iii) Land held for resale/capitalisation of original terms of each receivable. borrowing costs

The amount of the provision is the difference Land held for resale is stated at the lower of cost and between the asset’s carrying amount and the net realisable value. present value of estimated future cash flows, discounted at the effective interest rate. Cost is assigned by specific identification and includes the cost of acquisition, and development Impairment losses are recognised in the Income and borrowing costs during development. Statement within other expenses. When development is completed borrowing costs When a receivable for which an impairment and other holding charges are expensed as incurred. allowance had been recognised becomes uncollectible in a subsequent period, it is written off Borrowing costs included in the cost of land held for against the allowance account. resale are those costs that would have been avoided if the expenditure on the acquisition and Subsequent recoveries of amounts previously development of the land had not been made. written off are credited against other expenses in the Income Statement. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. (h) Inventories

(i) Raw materials and stores, work in progress (i) Infrastructure, property, plant and and finished goods equipment (I,PP&E)

Raw materials and stores, work in progress and Acquisition of assets finished goods in respect of business undertakings are all stated at the lower of cost and net realisable Council’s non-current assets are continually revalued value. (over a 5-year period) in accordance with the fair

page 14

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

valuation policy as mandated by the Office of Local The discount rate used is the Council’s incremental Government. borrowing rate, being the rate at which a similar borrowing could be obtained from an independent At balance date, the following classes of I,PP&E financier under comparable terms and conditions. were stated at their fair value: Where infrastructure, property, plant and equipment - Plant and equipment assets are acquired for no cost or for an amount (as approximated by depreciated historical cost) other than cost, the assets are recognised in the financial statements at their fair value at acquisition - Operational land (external valuation) date – being the amount that the asset could have been exchanged between knowledgeable willing - Community land (internal valuation) parties in an arm’s length transaction.

- Land improvements Subsequent costs (as approximated by depreciated historical cost) Subsequent costs are included in the asset’s carrying - Buildings – specialised/non-specialised amount or recognised as a separate asset, as (external valuation) appropriate, only when it is probable that future economic benefits associated with the item will flow - Other structures (as approximated by depreciated historical cost) to Council and the cost of the item can be measured reliably. - Roads assets including roads, bridges and footpaths (external valuation) All other repairs and maintenance are charged to the income statement during the financial period in which - Bulk earthworks (external valuation) they are incurred.

- Stormwater drainage (external valuation) Asset revaluations (including indexation)

- Water and sewerage networks In accounting for asset revaluations relating to (external valuation) infrastructure, property, plant and equipment:

- Swimming pools (external valuation) . increases in the combined carrying amounts of asset classes arising on revaluation are credited - Other open space/recreational assets to the asset revaluation reserve, (external valuation) . to the extent that a net asset class increase - Other infrastructure (external valuation) reverses a decrease previously recognised via the profit or loss, then increase is first recognised - Other assets in profit or loss, (as approximated by depreciated historical cost) . net decreases that reverse previous increases of Initial recognition the same asset class are first charged against revaluation reserves directly in equity to the On initial recognition, an asset’s cost is measured at extent of the remaining reserve attributable to the its fair value, plus all expenditure that is directly asset, with all other decreases charged to the attributable to the acquisition. Income Statement.

Where settlement of any part of an asset’s cash Water and sewerage network assets are indexed consideration is deferred, the amounts payable in annually between full revaluations in accordance with the future are discounted to their present value as at the latest indices provided in the NSW Office of the date of recognition (i.e. date of exchange) of the Water – Rates Reference Manual. asset to arrive at fair value. For all other assets, Council assesses at each reporting date whether there is any indication that a

page 15

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

revalued asset’s carrying amount may differ Depreciation materially from that which would be determined if the asset were revalued at the reporting date. Depreciation on Council's infrastructure, property, plant and equipment assets is calculated using the If any such indication exists, Council determines the straight-line method in order to allocate an asset’s asset’s fair value and revalues the asset to that cost (net of residual values) over its estimated useful amount. life.

Full revaluations are undertaken for all assets on a Land is not depreciated. 5-year cycle. Estimated useful lives for Council's I,PPandE Capitalisation thresholds include:

Items of infrastructure, property, plant and Plant and Equipment equipment are not capitalised unless their cost of - Office Equipment 4 years acquisition exceeds the following; - Office furniture 20 years - Computer Equipment 4 years Land - Vehicles 5 to 8 years - council land 100% Capitalised - Heavy Plant/Road Making equip. 5 to 8 years - open space 100% Capitalised - Other plant and equipment 3 to 15 years

Plant and Equipment Buildings 50 to 100 years Office Furniture > $1,000 Office Equipment > $1,000 Other Plant and Equipment > $1,000 Stormwater Drainage - Drains 100 years Buildings and Land Improvements - Culverts 50 to 75 years Park Furniture and Equipment > $2,000 - Flood Structures 80 to 100 years

Building - construction/extensions 100% Capitalised Transportation Assets - renovations > $10,000 - Sealed Roads: Surface 62 years - Sealed Roads: Structure 166 years Other Structures > $2,000 - Unsealed roads 55 years

- Bridge: Concrete 70 to 250 years Water and Sewer Assets Reticulation extensions 100% Capitalised Other > $5,000 Water and Sewer Assets - Reservoirs 100 years

Stormwater Assets - Reticulation pipes 75 years Drains and Culverts > $5,000 - Other 25 to 50 years Other > $5,000 - Pumping stations 50 years

Transport Assets

Road construction and reconstruction > $10,000 Other Infrastructure Assets - Bulk earthworks Infinite Reseal/Re-sheet and major repairs > $10,000

Bridge construction and reconstruction > $10,000 - Swimming Pools 50 years - Other Open Space/ Recreational Assets 5 to 100 years

Other Infrastructure Assets - Other Assets 5 to 100 years Swimming Pools > $10,000

Other Open Space/Recreational Assets > $10,000

Other Infrastructure > $10,000

page 16

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

All asset residual values and useful lives are (m) Crown reserves reviewed and adjusted (if appropriate) at each reporting date. Crown reserves under Council’s care and control are recognised as assets of the Council. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s While ownership of the reserves remains with the carrying amount is greater than its estimated Crown, Council retains operational control of the recoverable amount – refer Note 1 (s) on asset reserves and is responsible for their maintenance impairment. and use in accordance with the specific purposes to which the reserves are dedicated. Disposal and de-recognition Improvements on Crown reserves are also recorded An item of property, plant and equipment is as assets, while maintenance costs incurred by derecognised upon disposal or when no further Council and revenues relating to the reserves are future economic benefits are expected from its use recognised within Council’s Income Statement. or disposal. Representations are currently being sought across Any gain or loss arising on derecognition of the state and local government to develop a consistent asset (calculated as the difference between the net accounting treatment for Crown Reserves across disposal proceeds and the carrying amount of the both tiers of government. asset) is included in Council’s Income Statement in the year the asset is derecognised. (n) Rural fire service assets

(j) Land Under section 119 of the Rural Fires Act 1997, ‘all fire fighting equipment purchased or constructed Land (other than land under roads) is in accordance wholly or from money to the credit of the Fund is to with Part 2 of Chapter 6 of the Local Government be vested in the council of the area for or on behalf of Act (1993) classified as either operational or which the fire fighting equipment has been community. purchased or constructed’.

This classification of land is disclosed in Note 9 (a). At present, the accounting for such fire fighting equipment is not treated in a consistent manner across all Councils. (k) Land under roads Until such time as discussions on this matter have Land under roads is land under roadways and road concluded and the legislation changed, Council will reserves, including land under footpaths, nature continue to account for these assets as it has been strips and median strips. doing in previous years, which is to incorporate the assets, their values and depreciation charges within Council has elected not to recognise land under these financial statements. roads acquired before 1 July 2008 in accordance with AASB 1051. (o) Provisions for close down, restoration Land under roads acquired after 1 July 2008 is and for environmental clean-up costs of recognised in accordance with AASB 116 – quarries Property, Plant and Equipment. Council has an obligation to restore and remediate its quarries following closure. Provision has been made (l) Intangible assets in accordance with the accounting standards.

Council has not classified any assets as intangible.

page 17

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

Specific information about Council's provisions (t) Employee benefits relating to close down, restoration and remediation costs can be found at Note 26. (i) Short-term obligations

Short-term employee benefit obligations include (p) Impairment of assets liabilities for wages and salaries (including non- monetary benefits), annual leave and vesting sick All Council's I,PP&E is subject to an annual leave expected to be wholly settled within the 12 assessment of impairment. months after the reporting period.

Assets that are subject to amortisation are reviewed Leave liabilities are recognised in the provision for for impairment whenever events or changes in employee benefits in respect of employees’ services circumstances indicate that the carrying amount may up to the reporting date with other short term not be recoverable. employee benefit obligations disclosed under payables. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its These provisions are measured at the amounts recoverable amount. expected to be paid when the liabilities are settled.

The recoverable amount is the higher of an asset’s Liabilities for non-vesting sick leave are recognised fair value less costs to sell and value in use. at the time when the leave is taken and measured at the rates paid or payable, and accordingly no Liability Where an asset is not held principally for cash- has been recognised in these reports. generating purposes (for example infrastructure assets) and would be replaced if the Council was Wages and salaries, annual leave and vesting sick deprived of it, then depreciated replacement cost is leave are all classified as current liabilities. used as value in use, otherwise value in use is estimated by using a discounted cash flow model. (ii) Other long-term obligations

Non-financial assets (other than goodwill) that The liability for all long service and annual leave in suffered a prior period impairment are reviewed for respect of services provided by employees up to the possible reversal of the impairment at each reporting reporting date (which is not expected to be wholly date. settled within the 12 months after the reporting period) are recognised in the provision for employee (q) Payables benefits.

These amounts represent liabilities and include These liabilities are measured at the present value of goods and services provided to the Council prior to the expected future payments to be made using the the end of financial year that are unpaid. projected unit credit method.

The amounts for goods and services are unsecured Consideration is given to expected future wage and and are usually paid within 30 days of recognition. salary levels, experience of employee departures and periods of service.

(r) Borrowings Expected future payments are then discounted using market yields at the reporting date based on national Borrowing costs are expensed. government bonds with terms to maturity and currency that match as closely as possible the (s) Provisions estimated future cash outflows.

Council has no other provisions other than Due to the nature of when and how long service Employee Leave Liability and Remediation of leave can be taken, all long service leave for Quarries. employees with 4 or more years of service has been classified as current, as it has been deemed that

page 18

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

Council does not have the unconditional right to (v) Allocation between current and defer settlement beyond 12 months – even though it non-current assets and liabilities is not anticipated that all employees with more than 4 years service (as at reporting date) will apply for In the determination of whether an asset or liability is and take their leave entitlements in the next 12 classified as current or non-current, consideration is months. given to the time when each asset or liability is expected to be settled. (iii) Retirement benefit obligations The asset or liability is classified as current if it is All employees of the Council are entitled to benefits expected to be settled within the next 12 months, on retirement, disability or death. being the Council’s operational cycle.

Council contributes to various defined benefit plans Exceptions and defined contribution plans on behalf of its employees. In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 Defined benefit plans months (such as vested long service leave), the liability is classified as current even if it is not A liability or asset in respect of defined benefit expected to be settled within the next 12 months. superannuation plans would ordinarily be recognised in the balance sheet, and measured as the present In the case of inventories that are ‘held for trading’, value of the defined benefit obligation at the these are also classified as current even if not reporting date plus unrecognised actuarial gains expected to be realised in the next 12 months. (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. (w) Taxes

The present value of the defined benefit obligation is The Council is exempt from both Commonwealth based on expected future payments which arise Income Tax and Capital Gains Tax. from membership of the fund to the reporting date, calculated annually by independent actuaries using Council does, however, have to comply with both the projected unit credit method. Consideration is Fringe Benefits Tax and Goods and Services Tax given to expected future wage and salary levels, (GST). experience of employee departures and periods of service. Goods and Services Tax (GST)

However, when this information is not reliably Income, expenses and assets are all recognised net available, Council can account for its obligations to of the amount of GST, except where the amount of defined benefit plans on the same basis as its GST incurred is not recoverable from the Australian obligations to defined contribution plans – i.e. as an Tax Office (ATO). expense when they become payable.

In these circumstances the GST is recognised as Defined contribution plans part of the cost of acquisition of the asset or as part

of the revenue / expense. Contributions to defined contribution plans are recognised as an expense as they become payable. Receivables and payables within the Balance Sheet Prepaid contributions are recognised as an asset to are stated inclusive of any applicable GST. the extent that a cash refund or a reduction in the future payments is available. The net amount of GST recoverable from or payable to the ATO is included as a current asset or current (u) Self-insurance liability in the Balance Sheet.

Council does not self-insure.

page 19

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 1. Summary of significant accounting policies (continued)

Operating cash flows within the Cash Flow additional and/or revised disclosures to changes in Statement are on a gross basis, i.e. they are how certain transactions and balances are accounted inclusive of GST where applicable. for.

Investing and financing cash flows are treated on a net basis (where recoverable from the ATO), i.e. (y) Rounding of amounts they are exclusive of GST. Instead, the GST component of investing and financing activity cash Unless otherwise indicated, amounts in the financial flows that are recoverable from or payable to the statements have been rounded off to the nearest ATO are classified as operating cash flows. thousand dollars.

Commitments and contingencies are disclosed net of the amount of GST recoverable from (or payable (z) Comparative figures to) the ATO. To ensure comparability with the current reporting period’s figures, some comparative period line items (x) New accounting standards and and amounts may have been reclassified or Interpretations issued (not yet effective) individually reported for the first time within these financial statements and/or the notes. Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting periods ending 30 June (aa) Disclaimer 2016. Nothing contained within these statements may be Council has not adopted any of these standards taken to be an admission of any liability to any early. person under any circumstance.

These include the following standards that are anticipated will impact on local government:

AASB 9 – Financial Instruments

AASB 15 – Revenue from Contracts with Customers and associated amending standards

AASB ED 260 – Income of Not-for-Profit Entities

AASB16 – Leases

AASB2015-6 – Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

AASB 2014 – 10 Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture

AASB 2014 – 3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 and AASB 11]

The full impact of the above standards has yet to be ascertained or quantified but will range from

page 20

Financial Statements 2016 Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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 & non- operations operations continuing operations continuing current) Functions/activities operations Original Original Original budget Actual Actual budget Actual Actual budget Actual Actual Actual Actual Actual Actual 2016 2016 2015 2016 2016 2015 2016 2016 2015 2016 2015 2016 2015 Governance – – – 316 336 296 (316) (336) (296) – – – – Administration 393 277 411 4,178 3,522 4,038 (3,785) (3,245) (3,627) 5 36 19,862 17,066 Public order and safety 484 544 228 648 668 549 (164) (124) (321) 413 84 2,034 1,773 Health 10 8 20 2 3 2 8 5 18 – – 1,241 276 Environment 3,239 3,158 3,077 3,568 4,017 3,815 (329) (859) (738) 265 248 29,039 30,371 Community services and education 4 18 9 153 163 14 (149) (145) (5) 1 27 668 739 Housing and community amenities 519 563 898 1,985 1,890 1,808 (1,466) (1,327) (910) 66 66 779 1,105 Water supplies 6,191 6,296 6,253 6,151 6,273 6,247 40 23 6 124 353 60,935 61,027 Sewerage services 3,360 3,296 3,111 3,074 2,838 2,655 286 458 456 45 45 41,937 42,058 Recreation and culture 357 417 463 3,220 3,492 3,296 (2,863) (3,075) (2,833) 133 142 29,497 40,208 Mining, manufacturing and construction 134 172 210 34 42 27 100 130 183 – – 514 518 Transport and communication 1,484 2,496 1,568 3,101 3,640 2,973 (1,617) (1,144) (1,405) 1,936 947 409,009 409,338 Economic affairs 5,832 6,330 7,423 4,287 5,502 6,055 1,545 828 1,368 11 – 6,852 7,724

Total functions and activities 22,007 23,575 23,671 30,717 32,386 31,775 (8,710) (8,811) (8,104) 2,999 1,948 602,367 612,203 Share of gains/(losses) in associates and joint ventures (using the equity method) – – – – – – – – – – – – – General purpose income 1 11,150 11,103 11,041 – – – 11,150 11,103 11,041 4,327 4,363 – – Operating result from continuing operations 33,157 34,678 34,712 30,717 32,386 31,775 2,440 2,292 2,937 7,326 6,311 602,367 612,203

1. Includes: rates and annual charges (incl. ex-gratia), untied general purpose grants and unrestricted interest and investment income.

page 21 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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:

GOVERNANCE Costs relating to Council’s role as a component of democratic government, including elections, members’ fees and expenses, subscriptions to local authority associations, meetings of Council and policy-making committees, public disclosure (e.g. GIPA), and legislative compliance.

ADMINISTRATION Corporate support and other support services, engineering works, and any Council policy compliance.

PUBLIC ORDER AND SAFETY Fire protection, animal control, enforcement of local government regulations, emergency services, other.

HEALTH Inspection and food control.

ENVIRONMENT Noxious plants and insect/vermin control; other environmental protection; solid waste management, street cleaning, drainage and stormwater management.

COMMUNITY SERVICES AND EDUCATION Youth services; aged and disabled persons services.

HOUSING AND COMMUNITY AMENITIES Public cemeteries; public conveniences; street lighting; town planning; housing other community amenities.

WATER SUPPLIES SEWERAGE SERVICES

RECREATION AND CULTURE Public libraries; art galleries; community centres and halls, sporting grounds and venues; swimming pools; parks; gardens; lakes; other cultural services.

MINING, MANUFACTURING AND CONSTRUCTION Building control, quarries and pits.

TRANSPORT AND COMMUNICATION Urban local roads, sealed and unsealed roads, bridges, footpaths, parking areas, bus shelters and aerodromes.

ECONOMIC AFFAIRS Caravan parks; tourism and area promotion; industrial development promotion; sale yards; real estate development and other business undertakings.

page 22 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 3. Income from continuing operations

Actual Actual $ ’000 Notes 2016 2015

(a) Rates and annual charges

Ordinary rates Residential 2,129 2,054 Farmland 2,711 2,657 Mining 20 81 Business 1,228 1,166 Total ordinary rates 6,088 5,958

Special rates Nil

Annual charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611) Domestic waste management services 1,992 1,908 Water supply services 1,410 1,362 Sewerage services 2,386 2,307 Waste management services (non-domestic) 220 214 Total annual charges 6,008 5,791

TOTAL RATES AND ANNUAL CHARGES 12,096 11,749

Council has used 2014 year valuations provided by the NSW Valuer General in calculating its rates.

page 23 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 3. Income from continuing operations (continued)

Actual Actual $ ’000 Notes 2016 2015

(b) User charges and fees

Specific user charges (per s.502 – specific ‘actual use’ charges) Water supply services 4,616 4,350 Sewerage services 693 662 Total user charges 5,309 5,012

Other user charges and fees (i) Fees and charges – statutory and regulatory functions (per s.608) Planning and building regulation 315 362 Private works – section 67 597 892 Total fees and charges – statutory/regulatory 912 1,254

(ii) Fees and charges – other (incl. general user charges (per s.608)) Aerodrome 20 20 Caravan park 508 208 Cemeteries 302 253 RMS (formerly RTA) charges (state roads not controlled by Council) 4,560 5,696 Saleyards 548 507 Swimming centres 189 187 Waste disposal tipping fees 348 309 Water connection fees 75 121 Other 105 110 Total fees and charges – other 6,655 7,411

TOTAL USER CHARGES AND FEES 12,876 13,677

page 24 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 3. Income from continuing operations (continued)

Actual Actual $ ’000 Notes 2016 2015

(c) Interest and investment revenue (including losses)

Interest – Interest on overdue rates and annual charges (incl. special purpose rates) 55 87 – Interest earned on investments (interest and coupon payment income) 595 607 – Interest on deferred debtors 90 90 Amortisation of premiums and discounts – Interest free (and interest reduced) loans provided 25 27 TOTAL INTEREST AND INVESTMENT REVENUE 765 811

Interest revenue is attributable to: Unrestricted investments/financial assets: Overdue rates and annual charges (general fund) 55 87 General Council cash and investments 633 633 Restricted investments/funds – external: Development contributions – Section 94 11 16 – Section 64 34 23 Water fund operations 10 27 Sewerage fund operations 13 16 Domestic waste management operations 9 9 Total interest and investment revenue recognised 765 811

(d) Other revenues

Rental income – other council properties 197 196 Fines 103 293 Legal fees recovery – rates and charges (extra charges) 20 17 Legal fees recovery – other – 150 Cultural and community activities 59 173 Diesel rebate 83 75 Insurance rebate 56 68 Lease back contributions 90 76 Recycling income (non-domestic) 159 246 Other 62 35 TOTAL OTHER REVENUE 829 1,329

page 25 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 3. Income from continuing operations (continued)

2016 2015 2016 2015 $ ’000 Operating Operating Capital Capital

(e) Grants

General purpose (untied) Financial assistance – general component 2,865 2,889 – – Financial assistance – local roads component 1,355 1,363 – – Pensioners’ rates subsidies – general component 107 111 – – Total general purpose 4,327 4,363 – –

Specific purpose Pensioners’ rates subsidies: – Water 66 67 – – – Sewerage 45 45 – – – Domestic waste management 88 88 – – Water supplies – – – 201 Community care – 27 – – Economic development 11 – – – Employment and training programs 5 34 – – Environmental protection 170 93 7 67 Heritage and cultural 3 5 – – Library 38 45 7 – LIRS subsidy 58 85 – – NSW rural fire services 40 59 360 25 Recreation and culture 45 41 40 51 Street lighting 66 66 – – Transport (roads to recovery) 1,836 893 – – Transport (other roads and bridges funding) – – 100 54 Other 14 2 – – Total specific purpose 2,485 1,550 514 398 Total grants 6,812 5,913 514 398

Grant revenue is attributable to: – Commonwealth funding 6,056 5,145 – – – State funding 756 768 514 398 6,812 5,913 514 398

page 26 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 3. Income from continuing operations (continued)

2016 2015 2016 2015 $ ’000 Operating Operating Capital Capital

(f) Contributions

Developer contributions: (s93 & s94 – EP&A Act, s64 of the LGA): S 94 – contributions towards amenities/services – – 7 1 S 94A – fixed development consent levies – – 10 64 S 64 – water supply contributions – – 33 – S 64 – sewerage service contributions – – 64 – Total developer contributions 17 – – 114 65

Other contributions: Heritage/cultural 17 17 – – Roads and bridges – – 1 16 RMS contributions (regional roads, block grant) 501 493 – – Water supplies (excl. section 64 contributions) – – – 9 Contribution Toilet Block – – 9 – Total other contributions 518 510 10 25 Total contributions 518 510 124 90

TOTAL GRANTS AND CONTRIBUTIONS 7,330 6,423 638 488

Actual Actual $ ’000 2016 2015

(g) Restrictions relating to grants and contributions

Certain grants and contributions are obtained by Council on condition that they be spent in a specified manner: Unexpended at the close of the previous reporting period 2,498 2,706

Add: grants and contributions recognised in the current period but not yet spent: 668 337

Less: grants and contributions recognised in a previous reporting period now spent: (723) (545)

Net increase (decrease) in restricted assets during the period (55) (208) Unexpended and held as restricted assets 2,443 2,498

Comprising: – Specific purpose unexpended grants 250 668 – Developer contributions 1,761 1,725 – Other contributions 432 105 2,443 2,498

page 27 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 4. Expenses from continuing operations

Actual Actual $ ’000 Notes 2016 2015

(a) Employee benefits and on-costs

Salaries and wages 10,065 9,920 Travel expenses 30 41 Employee leave entitlements (ELE) 1,897 1,846 Superannuation – defined contribution plans 891 837 Superannuation – defined benefit plans 267 305 Workers’ compensation insurance 299 292 Fringe benefit tax (FBT) 46 53 Training costs (other than salaries and wages) 154 144 Total employee costs 13,649 13,438 Less: capitalised costs (787) (709) TOTAL EMPLOYEE COSTS EXPENSED 12,862 12,729

Number of ‘full-time equivalent’ employees (FTE) at year end 168 167 Number of ‘full-time equivalent’ employees (FTE) at year end (incl. vacancies) 171 173

(b) Borrowing costs

(i) Interest bearing liability costs Interest on loans 1,342 1,416 Total interest bearing liability costs expensed 1,342 1,416

(ii) Other borrowing costs Discount adjustments relating to movements in provisions (other than ELE) – – – Remediation liabilities 26 19 18 Total other borrowing costs 19 18 TOTAL BORROWING COSTS EXPENSED 1,361 1,434

(c) Materials and contracts

Raw materials and consumables 6,362 6,651 Contractor and consultancy costs 1,998 1,541 Auditors remuneration (1) 53 36 Legal expenses: – Legal expenses: planning and development 95 118 – Legal expenses: other 127 78 Operating leases: – Operating lease rentals: minimum lease payments (2) 111 115 TOTAL MATERIALS AND CONTRACTS 8,746 8,539 (continued on the next page...)

page 28 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 4. Expenses from continuing operations (continued)

Actual Actual $ ’000 Notes 2016 2015

(c) Materials and contracts (continued)

1. Auditor remuneration During the year, the following fees were incurred for services provided by the Council’s Auditor:

(i) Audit and other assurance services – Audit and review of financial statements: Council’s Auditor 37 33 – Other audit and assurance services 16 3 Remuneration for audit and other assurance services 53 36

Total Auditor remuneration 53 36

2. Operating lease payments are attributable to: Computers 111 115 111 115

Impairment costs Depreciation/amortisation Actual Actual Actual Actual $ ’000 Notes 2016 2015 2016 2015

(d) Depreciation, amortisation and impairment

Plant and equipment – – 1,047 1,014 Office equipment – – 35 3 Furniture and fittings – – 36 36 Infrastructure: – Buildings – – 479 479 – Roads – – 1,269 1,233 – Bridges – – 161 160 – Footpaths – – 58 58 – Stormwater drainage – – 252 252 – Water supply network – – 1,701 1,645 – Sewerage network – – 560 541 – Swimming pools – – 91 47 – Other open space/recreational assets – – 154 146 Other assets – Other – – 349 267 Asset reinstatement costs 9 & 26 – – 5 5 TOTAL DEPRECIATION AND IMPAIRMENT COSTS EXPENSED – – 6,197 5,886

page 29 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 4. Expenses from continuing operations (continued)

Actual Actual $ ’000 Notes 2016 2015

(e) Other expenses

Other expenses for the year include the following:

Advertising 143 109 Bad and doubtful debts 14 19 Bank charges 66 71 Contributions/levies to other levels of government 777 733 Emergency Services levy (includes FRNSW, SES, and RFS levies) 252 165 Councillor expenses – mayoral fee 24 23 Councillor expenses – councillors’ fees 99 97 Councillors’ expenses (incl. mayor) – other (excluding fees above) 50 40 Electricity and heating 788 922 Insurance 519 490 Street lighting 259 276 Telephone and communications 169 156 Valuation fees 60 86 TOTAL OTHER EXPENSES 3,220 3,187

Note 5. Gains or losses from the disposal of assets

Actual Actual

Property (excl. investment property) Proceeds from disposal – property – 202 Less: carrying amount of property assets sold/written off – (192) Net gain/(loss) on disposal – 10

Plant and equipment Proceeds from disposal – plant and equipment 338 377 Less: carrying amount of plant and equipment assets sold/written off (194) (152) Net gain/(loss) on disposal 144 225

Financial assets* Proceeds from disposal/redemptions/maturities – financial assets 14,000 2,000 Less: carrying amount of financial assets sold/redeemed/matured (14,000) (2,000) Net gain/(loss) on disposal – –

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS 144 235

page 30 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 6a. – Cash assets and Note 6b. – investments

2016 2016 2015 2015 Actual Actual Actual Actual $ ’000 Notes Current Non-current Current Non-current

Cash and cash equivalents (Note 6a) Cash on hand and at bank 370 – 638 – Cash-equivalent assets 1 – Deposits at call 1,900 – – – – Short-term deposits 2,000 – 4,000 – Total cash and cash equivalents 4,270 – 4,638 –

Investments (Note 6b) – Long term deposits 18,000 – 14,000 – Total investments 18,000 – 14,000 – TOTAL CASH ASSETS, CASH EQUIVALENTS AND INVESTMENTS 22,270 – 18,638 –

1 Those investments where time to maturity (from date of purchase) is < 3 mths.

Cash, cash equivalents and investments were classified at year end in accordance with AASB 139 as follows:

Cash and cash equivalents a. ‘At fair value through the profit and loss’ 4,270 – 4,638 –

Investments a. ‘Loans and receivables’ 6(b-iii) 18,000 – 14,000 – Investments 18,000 – 14,000 –

Note 6(b-i) Reconciliation of investments classified as ‘loans and receivables’ Balance at the beginning of the year 14,000 – 2,000 – Additions 18,000 – 14,000 – Disposals (sales and redemptions) (14,000) – (2,000) – Balance at end of year 18,000 – 14,000 –

Comprising: – Long term deposits 18,000 – 14,000 – Total 18,000 – 14,000 –

Refer to Note 27. Fair value measurement for information regarding the fair value of investments held.

page 31 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 6c. Restricted cash, cash equivalents and investments – details

2016 2016 2015 2015 Actual Actual Actual Actual $ ’000 Current Non-current Current Non-current

Total cash, cash equivalents and investments 22,270 – 18,638 – attributable to: External restrictions (refer below) 14,534 – 12,144 – Internal restrictions (refer below) 6,809 – 5,581 – Unrestricted 927 – 913 – 22,270 – 18,638 –

2016 Opening Transfers to Transfers from Closing $ ’000 balance restrictions restrictions balance

Details of restrictions

External restrictions – included in liabilities Specific purpose unexpended loans – general (A) – 2,129 (449) 1,680 External restrictions – included in liabilities – 2,129 (449) 1,680

External restrictions – other Developer contributions – general (D) 547 28 (123) 452 Developer contributions – water fund (D) 600 51 – 651 Developer contributions – sewer fund (D) 578 80 – 658 RMS (formerly RTA) contributions (E) 105 327 – 432 Specific purpose unexpended grants (F) 668 – (418) 250 Water supplies (G) 3,111 409 – 3,520 Sewerage services (G) 5,381 410 – 5,791 Domestic waste management (G) 959 – – 959 Other capital contributions 195 4 (58) 141 External restrictions – other 12,144 1,309 (599) 12,854 Total external restrictions 12,144 3,438 (1,048) 14,534

A Loan moneys which must be applied for the purposes for which the loans were raised. D Development contributions which are not yet expended for the provision of services and amenities in accordance with contributions plans (refer Note 17). E RMS contributions which are not yet expended for the provision of services and amenities in accordance with those contributions. F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1 (b)) G Water, sewerage, domestic waste management (DWM) and other special rates/levies/charges are externally restricted assets and must be applied for the purposes for which they were raised.

page 32 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 6c. Restricted cash, cash equivalents and investments – details (continued)

2016 Opening Transfers to Transfers from Closing $ ’000 balance restrictions restrictions balance

Internal restrictions Plant and vehicle replacement 462 239 – 701 Infrastructure replacement 441 90 – 531 Employees leave entitlement 95 205 – 300 Carry over works 286 523 – 809 Deposits, retentions and bonds 285 280 – 565 Aerodrome 235 – (178) 57 Art gallery 19 – (5) 14 Bad debts 38 – (5) 33 Business assistance 172 – – 172 Caravan parks 292 2 – 294 Community strategic plan 36 – – 36 Depot redevelopment 200 – – 200 Election 47 23 – 70 Environmental projects 8 – – 8 Fire mitigation 16 – – 16 Gravel rehabilitation 341 – (2) 339 IT equipment 60 – (33) 27 Main st improvements 92 – – 92 POW maintenance 3 – – 3 Risk management 196 36 – 232 Warranty 97 23 – 120 Saleyards 117 30 – 147 S611 964 – – 964 Waste 947 50 – 997 Works 32 – – 32 Workers compensation 100 – (50) 50 Total internal restrictions 5,581 1,501 (273) 6,809

TOTAL RESTRICTIONS 17,725 4,939 (1,321) 21,343

page 33 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 7. Receivables

2016 2015 $ ’000 Notes Current Non-current Current Non-current

Purpose Rates and annual charges 1,026 – 1,099 – User charges and fees 2,101 63 2,300 – Accrued revenues – Interest on investments 132 – 72 – – Other income accruals 18 – 337 – Deferred debtors 33 – 29 – Government grants and subsidies 70 – 75 – Net GST receivable 83 – – – Total 3,463 63 3,912 –

Less: provision for impairment Rates and annual charges (13) – (13) – Total provision for impairment – receivables (13) – (13) –

TOTAL NET RECEIVABLES 3,450 63 3,899 –

Externally restricted receivables Water supply – Specific purpose grants 65 – 66 – – Rates and availability charges 529 – 523 – – Other 1,521 – 1,388 – Sewerage services – Specific purpose grants 1 – 1 – – Rates and availability charges 280 – 279 – – Other 79 – 64 – Domestic waste management 240 – 254 – Total external restrictions 2,715 – 2,575 – Internally restricted receivables Nil Unrestricted receivables 735 63 1,324 – TOTAL NET RECEIVABLES 3,450 63 3,899 –

Notes on debtors above: (i) Rates and 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 and charges at 8.50% (2015 8.50%). Generally all other receivables are non-interest bearing.

(iv) Please refer to Note 15 for issues concerning credit risk and fair value disclosures.

page 34 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 8. Inventories and other assets

2016 2015 $ ’000 Notes Current Non-current Current Non-current

(a) Inventories

(i) Inventories at cost Real estate for resale (refer below) – 195 195 – Stores and materials 913 – 1,000 – Total inventories at cost 913 195 1,195 –

(ii) Inventories at net realisable value (NRV) Nil

TOTAL INVENTORIES 913 195 1,195 –

(b) Other assets

Prepayments – – 1 – Shares in unlisted companies – StateCover – 174 174 – TOTAL OTHER ASSETS – 174 175 –

Externally restricted assets

Water Stores and materials 3 – 3 – Total water 3 – 3 –

Sewerage Nil

Domestic waste management Nil

Other Nil

Total externally restricted assets 3 – 3 – Total internally restricted assets – – – – Total unrestricted assets 910 369 1,367 – TOTAL INVENTORIES AND OTHER ASSETS 913 369 1,370 –

page 35 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 8. Inventories and other assets (continued)

2016 2015 $ ’000 Current Non-current Current Non-current

(i) Other disclosures

(a) Details for real estate development Residential – 195 195 – Total real estate for resale – 195 195 – (Valued at the lower of cost and net realisable value)

Represented by: Acquisition costs (30) 195 165 – Development costs 30 – 30 – Total costs – 195 195 – Total real estate for resale – 195 195 –

Movements: Real estate assets at beginning of the year 195 – 195 – Total real estate for resale – 195 195 –

(b) Current assets not anticipated to be settled within the next 12 months The following inventories and other assets, even though classified as current are not expected to be recovered in the next 12 months; 2016 2015

Real estate for resale 195 195 195 195

(c) 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.

page 36 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 9a. Infrastructure, property, plant and equipment

Asset movements during the reporting period as at 30/6/2015 as at 30/6/2016 Revaluation Revaluation Carrying Additions Additions Depreciation WIP Adjustments decrements increments value At At Accumulated Carrying renewals new assets expense transfers and transfers to equity to equity At At Accumulated Carrying of disposals (ARR) (ARR) $ ’000 cost fair value depreciation impairment value cost fair value depreciation impairment value Capital work in progress 805 – – – 805 – 891 – – (734) – – – 962 – – – 962 Plant and equipment – 21,307 16,284 – 5,023 – 1,200 (194) (1,047) – 91 – – – 21,405 16,332 – 5,073 Office equipment – 520 485 – 35 – 32 – (35) 46 – – – – 598 520 – 78 Furniture and fittings – 718 625 – 93 – – – (36) – – – – – 718 661 – 57 Land: – Operational land – 8,779 – – 8,779 – – – – – (1,692) – – – 7,087 – – 7,087 – Community land – 25,639 – – 25,639 – – – – – 1,692 (12,939) – – 14,392 – – 14,392 Infrastructure: – Buildings – 33,832 12,925 – 20,907 80 196 – (479) 6 33 – – – 34,148 13,405 – 20,743 – Roads – 125,999 13,481 – 112,518 3,172 51 – (1,269) 98 159 (848) – – 128,528 14,647 – 113,881 – Bridges – 25,936 2,072 – 23,864 – – – (161) – – – – – 25,936 2,233 – 23,703 – Footpaths – 7,909 781 – 7,128 – 22 – (58) 383 – – – – 8,314 839 – 7,475 – Bulk earthworks (non-depreciable) – 258,950 – – 258,950 – – – – – – (1,066) – – 257,884 – – 257,884 – Stormwater drainage – 31,760 4,112 – 27,648 36 113 – (252) 32 – – – – 31,941 4,364 – 27,577 – Water supply network – 126,523 73,654 – 52,869 385 310 – (1,701) 59 – – 793 – 129,176 76,461 – 52,715 – Sewerage network – 48,260 15,213 – 33,047 208 42 – (560) 110 – – 496 – 49,344 16,001 – 33,343 – Swimming pools – 2,319 1,041 – 1,278 – – – (91) – – – – – 2,319 1,132 – 1,187 – Other open space/recreational assets – 4,332 2,065 – 2,267 – – – (154) – – – 279 – 4,533 2,141 – 2,392 Other assets: – Other – 11,288 3,956 – 7,332 228 39 – (349) – (283) (337) 14 – 9,971 3,327 – 6,644 Reinstatement, rehabilitation and restoration assets (refer Note 26): – Quarry assets – 174 60 – 114 – – – (5) – – – – – 174 65 – 109 TOTAL INFRASTRUCTURE, PROPERTY, PLANT AND EQUIP. 805 734,245 146,754 – 588,296 4,109 2,896 (194) (6,197) – – (15,190) 1,582 962 726,468 152,128 – 575,302

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 and equipment.

page 37 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 9b. Externally restricted infrastructure, property, plant and equipment

$ ’000 Actual Actual 2016 2015 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 Water supply WIP 140 – – 140 59 – – 59 Plant and equipment – 750 525 225 – 769 469 300 Office equipment – 3 3 – – 3 3 – Land – Operational land – 408 – 408 – 927 – 927 Buildings – 2,473 1,330 1,143 – 2,473 1,292 1,181 Infrastructure – 129,176 76,461 52,715 – 126,523 73,654 52,869 Other assets – 15 – 15 – – – – Total water supply 140 132,825 78,319 54,646 59 130,695 75,418 55,336

Sewerage services WIP 142 – – 142 147 – – 147 Plant and equipment – 76 40 36 – 72 33 39 Land – Operational land – 1,112 – 1,112 – 2,013 – 2,013 Buildings – 941 445 496 – 941 432 509 Infrastructure – 49,344 16,001 33,343 – 48,260 15,213 33,047 Total sewerage services 142 51,473 16,486 35,129 147 51,286 15,678 35,755

Domestic waste management Plant and equipment – 1,354 917 437 – 2,738 1,814 924 Land – Operational land – 312 – 312 – 312 – 312 Buildings – 957 394 563 – 866 381 485 Other assets – 417 267 150 – 878 339 539 Total DWM – 3,040 1,578 1,462 – 4,794 2,534 2,260

TOTAL RESTRICTED I,PP&E 282 187,338 96,383 91,237 206 186,775 93,630 93,351

Note 9c. Infrastructure, property, plant and equipment – current year

impairments

Actual Actual Council has recognised no impairment losses during the reporting period nor reversed any prior period losses.

page 38 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 10a. Payables, borrowings and provisions

2016 2015 $ ’000 Notes Current Non-current Current Non-current

Payables Goods and services – operating expenditure 1,075 – 1,170 – Payments received In advance 557 – – – Accrued expenses: – Other expenditure accruals 551 – 448 – Security bonds, deposits and retentions 565 – 569 – ATO – net GST payable – – 322 – Total payables 2,748 – 2,509 –

Borrowings Loans – secured 1 1,185 19,219 1,007 18,274 Total borrowings 1,185 19,219 1,007 18,274

Provisions Employee benefits: Annual leave 1,294 – 1,412 – Long service leave 2,989 110 2,702 180 Sub-total – aggregate employee benefits 4,283 110 4,114 180 Asset remediation/restoration (future works) 26 – 345 – 326 Total provisions 4,283 455 4,114 506

TOTAL PAYABLES, BORROWINGS AND PROVISIONS 8,216 19,674 7,630 18,780

(i) Liabilities relating to restricted assets 2016 2015 Current Non-current Current Non-current Externally restricted assets Water 806 6,844 705 7,307 Sewer 245 6,718 301 6,824 Domestic waste management 31 364 34 395 Liabilities relating to externally restricted assets 1,082 13,926 1,040 14,526

Internally restricted assets Nil

Total liabilities relating to restricted assets 1,082 13,926 1,040 14,526 Total liabilities relating to unrestricted assets 7,134 5,748 6,590 4,254 TOTAL PAYABLES, BORROWINGS AND PROVISIONS 8,216 19,674 7,630 18,780

1. Loans are secured over the general rating income of Council Disclosures on liability interest rate risk exposures, fair value disclosures and security can be found in Note 15.

page 39 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 10a. Payables, borrowings and provisions (continued)

Actual Actual $ ’000 2016 2015

(ii) Current liabilities not anticipated to be settled within the next twelve months

The following liabilities, even though classified as current, are not expected to be settled in the next 12 months.

Provisions – employees benefits 3,100 3,200 Payables – security bonds, deposits and retentions 400 400 3,500 3,600

Note 10b. Description of and movements in provisions

2015 2016 Opening Remeasurement Unused Closing Additional Decrease due balance effects due to amounts balance Class of provision provisions to payments as at 1/7/15 discounting reversed as at 30/6/16 Annual leave 1,412 752 (870) – – 1,294 Long service leave 2,882 471 (254) – – 3,099 Asset remediation 326 19 – – – 345 TOTAL 4,620 1,242 (1,124) – – 4,738

a. Employees leave entitlements and 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. b. Asset remediation, reinstatement and restoration provisions represent the present value estimate of future costs Council will incur in order to remove, restore and remediate assets and/or activities as a result of past operations.

page 40 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 11. Statement of cash flows – additional information

Actual Actual $ ’000 Notes 2016 2015

(a) Reconciliation of cash assets

Total cash and cash equivalent assets 6a 4,270 4,638 Less bank overdraft 10 – – Balance as per the Statement of Cash Flows 4,270 4,638

(b) Reconciliation of net operating result to cash provided from operating activities

Net operating result from Income Statement 2,292 2,937 Adjust for non-cash items: Depreciation and amortisation 6,197 5,886 Net losses/(gains) on disposal of assets (144) (235) Non-cash capital grants and contributions (193) (25) Amortisation of premiums, discounts and prior period fair valuations – Interest on all fair value adjusted interest free advances made by Council (25) (27) Unwinding of discount rates on reinstatement provisions 19 18

+/- Movement in operating assets and liabilities and other cash items: Decrease/(increase) in receivables 390 124 Decrease/(increase) in inventories 87 18 Decrease/(increase) in other assets 1 – Increase/(decrease) in payables (95) 78 Increase/(decrease) in other accrued expenses payable 103 206 Increase/(decrease) in other liabilities 231 45 Increase/(decrease) in employee leave entitlements 99 312 Net cash provided from/(used in) operating activities from the Statement of Cash Flows 8,962 9,337

page 41 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 11. Statement of cash flows – additional information (continued)

Actual Actual $ ’000 Notes 2016 2015

(c) Non-cash investing and financing activities

Bushfire grants 193 25 Total non-cash investing and financing activities 193 25

(d) Financing arrangements

(i) Unrestricted access was available at balance date to the following lines of credit: Bank overdraft facilities (1) 500 900 Credit cards/purchase cards 45 45 Total financing arrangements 545 945 Amounts utilised as at balance date: – Credit cards/purchase cards 7 8 Total financing arrangements utilised 7 8

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 and other payables are disclosed in Note 15. (ii) Secured loan liabilities Loans are secured by a mortgage over future years rate revenue only.

Note 12. Commitments for expenditure

Actual Actual (a) Capital commitments (exclusive of GST)

Nil

(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 129 139 Later than one year and not later than 5 years 119 50 Total non-cancellable operating lease commitments 248 189 b. Non-cancellable operating leases include the following assets: Contingent rentals may be payable depending on the condition of items or usage during the lease term. 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.

page 42 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 13a(i). Statement of performance measurement – indicators (consolidated)

Amounts Indicator Prior periods $ ’000 2016 2016 2015 2014

Local government industry indicators – consolidated

1. Operating performance ratio Total continuing operating revenue (1) excluding capital grants and contributions less operating expenses 1,510 4.45% 6.51% -8.04% Total continuing operating revenue (1) excluding capital 33,896 grants and contributions

2. Own source operating revenue ratio Total continuing operating revenue (1) excluding all grants and contributions 26,566 76.93% 79.95% 81.17% Total continuing operating revenue (1) 34,534

3. Unrestricted current ratio Current assets less all external restrictions (2) 9,186 (3, 4) 2.53x 3.01x 3.02x Current liabilities less specific purpose liabilities 3,634

4. Debt service cover ratio Operating result (1) before capital excluding interest and depreciation/impairment/amortisation 9,068 3.83x 3.82x 2.38x Principal repayments (Statement of Cash Flows) 2,367 plus borrowing costs (Income Statement)

5(a). Rates, annual charges, interest and extra charges outstanding percentage Rates, annual and extra charges outstanding 1,013 7.64% 8.30% 9.67% Rates, annual and extra charges collectible 13,257

5(b). Rates, annual charges, interest and extra charges outstanding percentage * Rates, annual and extra charges outstanding 504 3.95% 5.58% 7.07% Rates, annual and extra charges collectible 12,750

* This calculation excludes items for which the charge has been raised just prior to the year end, and as of 30th June the bill has not yet been received by the customer and so the amount is therefore not collectible.

6. Cash expense cover ratio Current year’s cash and cash equivalents plus all term deposits 22,270 x12 9.22 mths 8.0 mths 7.6 mths Payments from cash flow of operating and 2,414 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 and associates. (2) Refer Notes 6-8 inclusive. Also excludes any real estate and 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 and provisions not expected to be paid in the next 12 months (incl. ELE).

page 43 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 13a(ii). Local government industry indicators – graphs (consolidated)

Commentary on 2015/16 result 1. Operating performance ratio Purpose of 8% operating performance ratio 2015/16 ratio 4.45% 6% 4%

7% 2% 4% This ratio measures 0%

Ratio % Council’s 2013 2014 2015 2016 Council's Operating Performance Ratio is -2% achievement of -6% very sound and above the industry -4% -8% containing operating expenditure within benchmark. -6% operating revenue. -8% -10%

Benchmark: ――― Minimum >=0.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

Commentary on 2015/16 result 2. Own source operating revenue ratio Purpose of own 100% source operating 2015/16 ratio 76.93% 90% revenue ratio 80%

70% 60% This ratio measures 50% fiscal flexibility. It is Ratio % the degree of Council's Own Source Revenue Ratio 40% 77% 81% 80% 77% reliance on external remains well above the industry 30% funding sources such benchmark of 60%. 20% as operating grants 10% and contributions. 0% 2013 2014 2015 2016

Benchmark: ――― Minimum >=60.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

Commentary on 2015/16 result 3. Unrestricted current ratio Purpose of 4.0 unrestricted current ratio 2015/16 ratio 2.53x 3.5

3.0

2.5 To assess the The Unrestricted Current Ratio is again 2.0 adequacy of working well above the benchmark althought it has Ratio (x) 3.3 capital and its ability 1.5 3.0 3.0 been impacted by a one off advance to satisfy obligations 2.5 payment which has increased current 1.0 in the short term for the unrestricted liabilities. Excluding the one off item the 0.5 activities of Council. ratio would be 3.09x. 0.0 2013 2014 2015 2016

Benchmark: ――― Minimum >=1.50 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

page 44 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 13a(ii). Local government industry indicators – graphs (consolidated)

4. Debt service cover ratio Commentary on 2015/16 result Purpose of debt 4.5 service cover ratio 2015/16 ratio 3.83x 4.0 3.5 3.0 This ratio measures 2.5 the availability of

Ratio (x) 2.0 3.8 3.8 operating cash to Council's Debt Service Cover Ratio shows 1.5 service debt that there is more than adequate cash to 2.4 including interest, 1.0 service loan repayments. 1.3 principal and lease 0.5 payments 0.0 2013 2014 2015 2016

Benchmark: ――― Minimum >=2.00 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

5(a). Rates, annual charges, interest and Commentary on 2015/16 result extra charges outstanding percentage Purpose of rates 16.00% and annual charges outstanding ratio 2015/16 ratio 7.64% 14.00%

12.00%

10.00% To assess the impact 8.00% Outstanding rates and charges have again Ratio % 14.15% of uncollected rates 6.00% and annual charges reduced and reflects the active debt 9.67% on Council’s liquidity recovery program Council adopted some 4.00% 8.30% 7.64% and the adequacy of years ago, 2.00% recovery efforts.

0.00% 2013 2014 2015 2016

Benchmark: ――― Maximum <10.00% Ratio is within Benchmark Source for Benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside Benchmark

6. Cash expense cover ratio Commentary on 2015/16 result Purpose of cash 10.0 expense cover ratio 2015/16 ratio 9.22 mths 9.0 8.0

7.0 6.0 This liquidity ratio 5.0 indicates the number 9.2 The ratio is well above the benchmark of 3 of months a Council 4.0 7.6 8.0 and shows that Council has more than can continue paying Ratio (mths) 3.0 6.1 for its immediate adequate cash to meet its normal cash 2.0 expenses without outgoings. 1.0 additional cash inflow. 0.0 2013 2014 2015 2016

Benchmark: ――― Minimum >=3.00 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

page 45 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 13b. Statement of performance measurement – indicators (by fund)

Water Sewer General 5 $ ’000 2016 2016 2016

Local government industry indicators – by fund

1. Operating performance ratio Total continuing operating revenue (1) excluding capital grants and contributions less operating expenses -0.18% 11.48% 4.84% Total continuing operating revenue (1) excluding capital grants and contributions prior period: -3.38% 13.30% 8.42%

2. Own source operating revenue ratio Total continuing operating revenue (1) 97.79% 96.82% 67.92% excluding all grants and contributions (1) Total continuing operating revenue prior period: 94.86% 98.61% 73.12%

3. Unrestricted current ratio Current assets less all external restrictions (2) (3, 4) 7.00x 25.11x 2.53x Current liabilities less specific purpose liabilities prior period: 6.90x 18.29x 3.01x

4. Debt service cover ratio Operating result (1) before capital excluding interest and depreciation/impairment/amortisation 2.57x 2.23x 6.58x Principal repayments (Statement of Cash Flows) plus borrowing costs (Income Statement) prior period: 2.26x 2.24x 6.52x

5. Rates, annual charges, interest and extra charges outstanding percentage Rates, annual and extra charges outstanding 27.27% 10.46% 2.36% Rates, annual and extra charges collectible prior period: 27.75% 10.72% 3.30%

6. Cash expense cover ratio Current year’s cash and cash equivalents plus all term deposits 8.80 30.81 6.73 x12 Payments from cash flow of operating and mths mths mths financing activities prior period: 7.84 30.47 5.41 mths mths mths

Notes

(1) - (4) Refer to Notes at Note 13a(i) above. (5) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

page 46 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 14. Investment properties

Actual Actual $ ’000 Notes 2016 2015

Council has not classified any land or buildings as ‘investment properties’.

Note 15. Financial risk management

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.

The fair value of Council’s financial assets and financial liabilities approximates their carrying amount.

Financial assets Cash and cash equivalents 4,270 4,638 4,270 4,638 Investments – ‘Loans and receivables’ 18,000 14,000 18,000 14,000 Receivables 3,513 3,899 3,513 3,899 Other financial assets 174 174 174 174 Total financial assets 25,957 22,711 25,957 22,711 Financial liabilities Payables 2,191 2,509 2,073 2,509 Loans/advances 20,404 19,281 20,404 19,281 Total financial liabilities 22,595 21,790 22,477 21,790

page 47 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 15. Financial risk management (continued)

$ ’000

Council’s objective is to maximise its return on cash and investments whilst maintaining an adequate level of liquidity and preserving capital.

Council’s finance area manages the cash and Investments portfolio.

Council has an investment policy which complies with the Local Government Act 1993 and 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 capital guarantees.

(a) Market risk – price risk and interest rate risk

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 2016 Profit Equity Profit Equity Possible impact of a 1% movement in interest rates 222 222 (222) (222)

2015 Possible impact of a 1% movement in interest rates 180 180 (180) (180)

page 48 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 15. Financial risk management (continued)

$ ’000

(b) Credit risk

Council’s major receivables comprise (i) rates and annual charges and (ii) user charges and 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.

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 and 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.

Council makes suitable provision for doubtful receivables as required.

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:

2016 2016 2015 2015 Rates and Rates and annual Other annual Other charges receivables charges receivables (i) Ageing of receivables – % Current (not yet overdue) 50% 91% 49% 89% Overdue 50% 9% 51% 11% 100% 100% 100% 100%

Rates and Rates and (ii) Ageing of receivables – value annual Other annual Other Rates and annual charges Other receivables charges receivables charges receivables Current Current 510 2,236 540 2,499 < 1 year overdue 0 – 30 days overdue 80 163 87 102 1 – 2 years overdue 30 – 60 days overdue 149 3 161 75 2 – 5 years overdue 60 – 90 days overdue 242 – 262 108 > 5 years overdue > 90 days overdue 45 98 49 29 1,026 2,500 1,099 2,813

(iii) Movement in provision for impairment 2016 2015 of receivables Balance at the beginning of the year 13 13 Balance at the end of the year 13 13

page 49 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 15. Financial risk management (continued)

$ ’000

(c) Liquidity risk

Payables and 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 and overdraft facilities utilised as required.

The contractual undiscounted cash outflows (ie. principal and interest) of Council’s payables and 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

2016 Trade/other payables 565 1,626 – – – – – 2,191 2,191 Loans and advances – 2,493 2,483 2,463 2,250 2,250 23,306 35,245 20,404 Total financial liabilities 565 4,119 2,483 2,463 2,250 2,250 23,306 37,436 22,595

2015 Trade/other payables 569 1,940 – – – – – 2,509 2,509 Loans and advances – 2,332 2,250 2,240 2,220 2,007 24,100 35,149 19,281 Total financial liabilities 569 4,272 2,250 2,240 2,220 2,007 24,100 37,658 21,790

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect funding costs and debt servicing requirements. Council manages this risk through the diversification of borrowing types, maturities and interest rate structures.

The following interest rates were applicable 2016 2015 to Council’s borrowings at balance date: Carrying Average Carrying Average value interest rate value interest rate Trade/other payables 2,191 0.00% 2,509 0.00% Loans and advances – fixed interest rate 20,404 5.87% 19,281 6.80% 22,595 21,790

page 50 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 16. Material budget variations

$ ’000

Council’s original financial budget for 15/16 was adopted by the Council on 22 June 2015.

While the Income Statement included in this General Purpose Financial Report must disclose the original budget adopted by Council, the Local Government Act 1993 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

2016 2016 2016 $ ’000 Budget Actual ------Variance* ------

REVENUES Rates and annual charges 12,708 12,096 (612) (5%) U

User charges and fees 11,141 12,876 1,735 16% F Additional revenue from Roads and Maritime Services for contract work on State Roads $860,000. Council also took over the control of the caravan park and received income of $508,000 which was not included in original budget. Additional water consumption charges of $370,000 were also received.

Interest and investment revenue 534 765 231 43% F Returns on investment were higher than original budget due to a higher level of invested funds. Council generally takes a conservative approach when budgeting for interest income due to the falling rates over the past years.

Other revenues 926 829 (97) (10%) U Income in this area was reduced due lower prices being received for scrap metal, $91,000 below original budget.

Operating grants and contributions 6,729 7,330 601 9% F The Roads to Recovery Program for all councils was increased for 2015/16 & 2016/17 and councils received an additional $551,000 in funding. Environmental grants of $101,000 were also received for land rehabilitation and to combat illegal dumping.

Capital grants and contributions 839 638 (201) (24%) U Grants from NSW Rural Fire Service for capital equipment were less than original budget.

Net gains from disposal of assets 280 144 (136) (49%) U Council had budgeted to sell a number of parcels of land and caravan park cabins however these did not proceed. However profit on disposal of plant and vehicles was higher than budgeted, $144,000.

page 51 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 16. Material budget variations (continued)

2016 2016 2016 $ ’000 Budget Actual ------Variance* ------

EXPENSES Employee benefits and on-costs 11,723 12,862 (1,139) (10%) U Council completed additional works for Roads and Maritime Services increasing the wages costs. Capital wages were also less than original budget therefore increasing employee costs.

Borrowing costs 1,376 1,361 15 1% F

Materials and contracts 9,019 8,746 273 3% F

Depreciation and amortisation 5,733 6,197 (464) (8%) U

Other expenses 2,866 3,220 (354) (12%) U There were a number of variations to other expenses, the following being the major increases; insurance $31,000, contribution to Regional Library $21,000, Section 356 donations $27,000, Caravan Park electricity $50,000, recycling expenses $15,000.

Budget variations relating to Council’s Cash Flow Statement include:

Cash flows from operating activities 8,090 8,962 872 10.8% F

Cash flows from investing activities (6,577) (10,453) (3,876) 58.9% U Council purchased additional investments during the year.

Cash flows from financing activities (891) 1,123 2,014 (226.0%) F Council originally budgeted to borrow $120,000 however decided to bring forward a number of items in the borrowing program due to the extremely favourable interest being offered by TCorp.

page 52 Financial Statements 2016 Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 17. Statement of developer contributions

$ ’000

Council recovers contributions, raises levies and 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 and levies and the value of all remaining funds which are ‘restricted’ in their future use.

SUMMARY OF CONTRIBUTIONS AND LEVIES Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Drainage 75 1 – 1 (32) – 45 – Roads 129 2 – 1 (80) – 52 – Parking 96 – – 2 – – 98 – Open space 22 – – 1 – – 23 – Community facilities 20 1 – – – – 21 – Other 99 3 – 3 – – 105 – S94 contributions – under a plan 441 7 – 8 (112) – 344 – S94A levies – under a plan 106 10 – 3 (11) – 108 – Total S94 revenue under plans 547 17 – 11 (123) – 452 –

S64 contributions 1,178 97 – 34 – – 1,309 Total contributions 1,725 114 – 45 (123) – 1,761 –

page 53 Financial Statements 2016 Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 17. Statement of developer contributions (continued)

$ ’000

S94 CONTRIBUTIONS – UNDER A PLAN

CONTRIBUTION PLAN NUMBER - COWRA SHIRE COUNCIL Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Drainage 75 1 – 1 (32) – 45 – Roads 129 2 – 1 (80) – 52 – Parking 96 – – 2 – – 98 – Open space 22 – – 1 – – 23 – Community facilities 20 1 – – – – 21 – Other 99 3 – 3 – – 105 – Total 441 7 – 8 (112) – 344 –

S94A LEVIES – UNDER A PLAN

CONTRIBUTION PLAN NUMBER - COWRA SHIRE COUNCIL Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Other 106 10 – 3 (11) – 108 – Total 106 10 – 3 (11) – 108 –

page 54 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 18. Contingencies and other assets/liabilities not recognised

$ ’000

The following assets and liabilities do not qualify for The share of this deficit, that is broadly attributed recognition in the Statement of Financial Position, but to Council, is estimated to be in the order of $247,673 their knowledge and disclosure is considered relevant as at 30 June 2016. to the users of Council’s financial report. Council's share of the defeciency cannot be accurately calculated as the Scheme is a mutual arrangement LIABILITIES NOT RECOGNISED: where assets and liabilities are pooled together for all member councils. For this reason no liability for the 1. Guarantees deficiency has been recognised in Council's accounts.

(i) Defined benefit superannuation

contribution plans (ii) Statewide Limited

Council is party to an Industry Defined Benefit Plan Council is a member of Statewide Mutual, a mutual under the Local Government Superannuation Scheme, pool scheme providing liability insurance to local named The Local Government Superannuation government. Scheme - Pool B (the Scheme) which is a defined benefit plan that has been deemed to be a Membership includes the potential to share in either "multi-employer fund" for purposes of AASB119 the net assets or liabilities of the fund depending on Employee Benefits. Sufficient information is not its past performance. Council’s share of the net available to account for the Scheme as a defined assets or liabilities reflects Council’s contributions to benefit plan in accordance with AASB119 because the pool and the result of insurance claims within the assets to the Scheme are pooled together for all each of the fund years. Councils. The future realisation and finalisation of claims The amount of employer contributions to the defined incurred but not reported to 30/6 this year may result benefit section of the Scheme and recognised as an in future liabilities or benefits as a result of past expense for the year ending 30 June 2016 was events that Council will be required to fund or share $248,817. The last valaution of the Scheme was in respectively. performed by Mr Richard Boyfield, FIAA on 24/2/16 and covers the period ended 30 June 2015. (iii) StateCover Limited

However the position is monitored annually and the Council is a member of StateCover Mutual Limited actuary has estimated that, as at 30 June 2016, a and holds a partly paid share in the entity. deficit still exists. Effective from 1 July 2009, employers are required to make additional StateCover is a company providing workers contributions to assist in extinguishing the deficit. compensation insurance cover to the NSW local The amount of additional contributions included in the government industry and specifically Council. total employer contribution advised above is $123,508. Council's expected contributions to the plan for the next reporting period is $279,511

page 55 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 18. Contingencies and other assets/liabilities not recognised (continued)

$ ’000

LIABILITIES NOT RECOGNISED (continued): These future expenses do not yet qualify as liabilities as of the reporting date, but represent Council’s Council has a contingent liability to contribute further intention to spend funds in the manner and timing equity in the event of the erosion of the company’s set out in those plans. capital base as a result of the company’s past performance and/or claims experience or as a result of any increased prudential requirements from APRA. ASSETS NOT RECOGNISED: These future equity contributions would be required to maintain the company’s minimum level of net (i) Land under roads assets in accordance with its licence requirements. As permitted under AASB 1051, Council has elected (iv) Other guarantees not to bring to account land under roads that it owned or controlled up to and including 30/6/08. Council has provided no other guarantees other than those listed above. (ii) Infringement notices/fines

2. Other liabilities Fines and penalty income, the result of Council issuing infringement notices is followed up and (i) Third party claims collected by the Infringement Processing Bureau.

The Council is involved from time to time in various Council’s revenue recognition policy for such claims incidental to the ordinary course of business income is to account for it as revenue on receipt. including claims for damages relating to its services. Accordingly, at year end, there is a potential asset Council believes that it is appropriately covered due to Council representing issued but unpaid for all claims through its insurance coverage and infringement notices. does not expect any material liabilities to eventuate. Due to the limited information available on the status, (ii) S94 plans value and duration of outstanding notices, Council is unable to determine the value of outstanding income. Council levies section 94/94A contributions upon various development across the Council area through the required 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.

As well, these plans indicate proposed future expenditure to be undertaken by Council, which will be funded by making levies and receipting funds in future years or where a shortfall exists by the use of Council’s general funds.

page 56 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 19. Interests in other entities

$ ’000

Council’s objectives can and in some cases are best met through the use of separate entities and operations.

These operations and entities range from 100% ownership and control through to lower levels of ownership and control via co-operative arrangements with other councils, bodies and other outside organisations.

The accounting and reporting for these various entities, operations and arrangements varies in accordance with accounting standards, depending on the level of council’s (i) interest and (ii) control and the type (form) of entity/operation, as follows;

Controlled entities (subsidiaries) Note 19(a) Operational arrangements where Council’s control (but not necessarily interest) exceeds 50%.

Joint ventures and associates Note 19(b) Joint ventures are operational arrangements where the parties that have joint control have rights to the net assets of the arrangement. Associates are separate entities where Council has significant influence over the operations (but neither controls nor jointly controls them).

Joint operations Note 19(c) Operational arrangements where the parties that have joint control have rights to specific assets and obligations for specific liabilities relating to the arrangement rather than a right to the net assets of the arrangement.

Unconsolidated structured entities Note 19(d) Unconsolidated structured entities represent “special vehicles” that Council has an interest in but which are not controlled by Council and therefore not consolidated as a subsidiary, joint arrangement or associate. Attributes of structured entities include restricted activities, a narrow and well-defined objective and insufficient equity to finance its activities without financial support.

Subsidiaries, joint arrangements and associates not recognised Note 19(e)

page 57 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 19. Interests in other entities (continued)

$ ’000

(a) Controlled entities (subsidiaries) – being entities and operations controlled by Council

Council has no interest in any controlled entities (subsidiaries).

(b) Joint ventures and associates

Council has no interest in any joint ventures or associates.

(c) Joint operations

Council has no interest in any joint operations.

(d) Unconsolidated structured entities

Council did not consolidate the following structured entities:

Cowra Tourism

Council contributes to the operation of Cowra Tourism and has an agreement until 30 June 2017 to provide financial support.

Nature of risks relating to the Unconsolidated Structured Entity

Council currently contributes $278,770 to the operation of the organisation including part funding of an Events Management Officer.

Council has no obligation to meet any costs other than the contribution amount.

2016 2015 Losses (or expenses) incurred by Council relating to the Structured Entity 278,770 271,971

(e) Subsidiaries, joint arrangements and associates not recognised

None.

page 58 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 20. Retained earnings, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

Actual Actual $ ’000 Notes 2016 2015

(a) Retained earnings

Movements in retained earnings were as follows: Balance at beginning of year (from previous years audited accounts) 175,931 172,994 a. Correction of prior period errors 20 (c) (234) (234) b. Net operating result for the year 2,292 2,937 Balance at end of the reporting period 177,989 175,697

(b) Revaluation reserves

(i) Reserves are represented by:

– Infrastructure, property, plant and equipment revaluation reserve 396,488 410,096 Total 396,488 410,096

(ii) Reconciliation of movements in reserves:

Infrastructure, property, plant and equipment revaluation reserve – Opening balance 410,096 424,721 – Revaluations for the year 9(a) (13,608) (14,625) – Balance at end of year 396,488 410,096

TOTAL VALUE OF RESERVES 396,488 410,096

(iii) Nature and purpose of reserves

Infrastructure, property, plant and equipment revaluation reserve – The infrastructure, property, plant and equipment revaluation reserve is used to record increments/decrements of non-current asset values due to their revaluation.

page 59 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 20. Retained earnings, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors (continued)

Actual Actual $ ’000 Notes 2016 2015

(c) Correction of error/s relating to a previous reporting period

Correction of errors disclosed in this year’s financial statements:

Correction of understatement of long service leave liability (234) – for years 2013/14, $234,000 & 2015/16, $368,000 – 2015/16 Income Statement adjusted by $368,000 Note 4 employee – expenses. – Retained Earnings reduced by $234,000 in 2013/14, and $368,000 in – 2014/15.

These amounted to the following equity adjustments:

– Adjustments to opening equity – 1/7/14 (234) (relating to adjustments for the 30/6/14 reporting year end and prior periods) – Adjustments to closing equity – 30/6/15 – (relating to adjustments for the 30/6/15 year end) Total prior period adjustments – prior period errors (234) –

(d) Voluntary changes in accounting policies

Council made no voluntary changes in any accounting policies during the year.

(e) Changes in accounting estimates

Council made no changes in accounting estimates during the year.

page 60 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 21. Financial result and financial position by fund

Income Statement by fund Actual Actual Actual Actual $ ’000 2016 2016 2016 2016

1 Continuing operations Water Sewer General Income from continuing operations Rates and annual charges 1,408 2,386 8,302 User charges and fees 4,675 688 7,513 Interest and investment revenue 27 30 708 Other revenues 829 214 716 Grants and contributions provided for operating purposes 124 45 7,161 Grants and contributions provided for capital purposes 33 64 541 Other income Net gains from disposal of assets – – 144 Share of interests in joint ventures and associates using the equity method – – – Total income from continuing operations – 7,096 3,427 25,085

Expenses from continuing operations Employee benefits and on-costs 1,059 288 11,515 Borrowing costs 443 563 355 Materials and contracts 3,228 1,341 4,177 Depreciation and amortisation 1,816 580 4,731 Impairment – – – Other expenses 521 195 2,504 Total expenses from continuing operations – 7,067 2,967 23,282 Operating result from continuing operations – 29 460 1,803

Discontinued operations

Net profit/(loss) from discontinued operations – – – Net operating result for the year – 29 460 1,803

Net operating result attributable to each council fund – 29 460 1,803 Net operating result attributable to non-controlling interests – – – –

Net operating result for the year before grants and Contr and contributions provided for capital purposes – (4) 396 1,262

1 General fund refers to all Council’s activities other than Water and Sewer. NB. All amounts disclosed above are gross – that is, they include internal charges and recoveries made between the funds.

page 61 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements as at 30 June 2016

Note 21. Financial result and financial position by fund (continued)

Statement of Financial Position by fund Actual Actual Actual Actual $ ’000 2016 2016 2016 2016

1 ASSETS 0 Water Sewer General Current assets Cash and cash equivalents 801 1,237 2,232 Investments 3,370 5,212 9,418 Receivables 2,115 360 975 Inventories 3 – 910 Other – – – Non-current assets classified as ‘held for sale’ – – – Total current assets – 6,289 6,809 13,535

Non-current assets Investments – – – Receivables – – 63 Inventories – – 195 Infrastructure, property, plant and equipment 54,646 35,129 485,527 Investments accounted for using the equity method – – – Investment property – – – Intangible assets – – – Total non-current assets – 54,646 35,129 485,959 TOTAL ASSETS – 60,935 41,938 499,494

LIABILITIES Current liabilities Payables 83 53 2,612 Borrowings 459 99 627 Provisions 257 93 3,933 Total current liabilities – 799 245 7,172

Non-current liabilities Payables – – – Borrowings 6,844 6,718 5,657 Provisions 7 – 448 Total non-current liabilities – 6,851 6,718 6,105 TOTAL LIABILITIES – 7,650 6,963 13,277 Net assets – 53,285 34,975 486,217

EQUITY Retained earnings 17,134 19,668 141,187 Revaluation reserves 36,151 15,307 345,030 Total equity – 53,285 34,975 486,217

1 General Fund refers to all Council’s activities other than Water and Sewer. NB. All amounts disclosed above are gross – that is, they include internal receivables and payables between the funds.

page 62 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 22. ‘Held for sale’ non-current assets and disposal groups

$ ’000

Council did not classify any non-current assets or disposal groups as ‘held for sale’.

Note 23. Events occurring after the reporting date

Events that occur between the end of the reporting period (30 June 2016) 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 25/10/16.

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 2016.

(ii) Events that provide evidence of conditions that arose after the reporting period

These financial statements (and figures therein) do not incorporate any ‘non-adjusting events’ that have occurred after 30 June 2016 and which are only indicative of conditions that arose after 30 June 2016.

Council is unaware of any material or significant ‘non-adjusting events’ that should be disclosed.

Note 24. Discontinued operations

Council has not classified any of its operations as ‘discontinued’.

Note 25. Intangible assets

Actual Actual Intangible assets represent identifiable non-monetary assets 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.

page 63 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 26. Reinstatement, rehabilitation and restoration liabilities

$ ’000

Council has legal/public obligations to make restore, rehabilitate and reinstate the following assets/operations:

Estimated year of NPV of provision Asset/operation restoration 2016 2015

Quarries 345 326 Balance at end of the reporting period 10(a) 345 326

Under AASB 116 – Property, Plant and Equipment, where the use of an asset results in the obligation to dismantle or remove the asset and restore the site on which the asset stands, an estimate of such costs is required to be included in the cost of the asset.

An equivalent liability must be recognised under AASB 137 – Provisions, Contingent Liabilities and Contingent Assets.

The provision has been calculated by determining the present value of the future expenditures expected to be incurred. The discount rate used is the risk free borrowing rate applicable to Council.

Reconciliation of movement in provision for year:

Balance at beginning of year 326 308 Amortisation of discount (expensed to borrowing costs) 19 18 Total – reinstatement, rehabilitation and restoration provision 345 326

page 64 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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

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 and recognised at fair values: Fair value measurement hierarchy 2016 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 Infrastructure, property, plant and equipment Plant and equipment 30/06/16 – – 5,073 5,073 Office furniture 30/06/16 – – 78 78 Furniture and fittings 30/06/16 – – 57 57 Operational land 30/06/13 – – 7,087 7,087 Community land 30/06/16 – – 14,392 14,392 Buildings specialised 30/06/13 – – 20,743 20,743 Roads 1/07/14 – – 113,881 113,881 Bridges 1/07/14 – – 23,703 23,703 Footpaths 1/07/14 – – 7,475 7,475 Bulk earthworks 1/07/14 – – 257,884 257,884 Stormwater drainage 1/07/14 – – 27,577 27,577 Water supply 30/06/12 – – 52,715 52,715 Sewerage network 30/06/12 – – 33,343 33,343 Swimming pools 30/06/16 – – 1,187 1,187 Other recreational assets 30/06/16 – – 2,392 2,392 Other assets 30/06/16 – – 6,644 6,644 Quarry assets 1/07/12 – – 109 109 Total infrastructure, property, plant and equipment – – 574,340 574,340

page 65 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

$ ’000

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values (continued): 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 Infrastructure, property, plant and equipment Plant and equipment 30/06/15 – – 5,023 5,023 Office furniture 30/06/15 – – 35 35 Furniture and fittings 30/06/15 – – 93 93 Operational land 30/06/13 – – 8,779 8,779 Community land 30/06/12 – – 25,639 25,639 Buildings specialised 30/06/13 – – 20,907 20,907 Roads 1/07/14 – – 112,518 112,518 Bridges 1/07/14 – – 23,864 23,864 Footpaths 1/07/14 – – 7,128 7,128 Bulk earthworks 1/07/14 – – 258,950 258,950 Stormwater drainage 1/07/14 – – 27,648 27,648 Water supply 30/06/12 – – 52,869 52,869 Sewerage network 30/06/12 – – 33,047 33,047 Swimming pools 1/07/12 – – 1,278 1,278 Other recreational assets 1/07/12 – – 2,267 2,267 Other assets 1/07/12 – – 7,332 7,332 Quarry assets 1/07/12 – – 114 114 Total infrastructure, property, plant and equipment – – 587,491 587,491

(2) Transfers between level 1 and 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.

page 66

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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 (i.e. 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:

Infrastructure, Property, Plant & Equipment

Plant and Equipment – Major plant (graders, loaders trucks etc.), fleet vehicles (cars, utes etc.) and minor plant (chainsaws, mowers etc.)

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Plant and Equipment are valued at cost but are disclosed at fair value.

Office Equipment – Computers, servers

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Office Equipment is valued at cost but is disclosed at fair value.

Furniture and Fittings – Desks, chairs, air conditioners, cupboards

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Furniture and Fittings are valued at cost but are disclosed at fair value.

page 67

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

Operational Land – Industrial land, quarries, aerodrome, depot.

Valuation Techniques: ‘Market approach’

Inputs Used (Level 3): Land area, rate per square metre, zoning restrictions, geographical location, sales of comparable land

By taking into account the land characteristics, location, zoning and proximity to services. By acquiring services of an independent valuer (Regional and Rural Valuers) to inspect, analyse, compare with related assets and to provide a comprehensive valuation in accordance with AASB and OLG.

Under the NSW Legislation we have considered the subject land and the surrounding land to determine the form of valuation, taking into account the land characteristics, location, zoning, proximity to services. Market Value of Land as stated as per the Australian Property Institute in accordance with the guidelines “… the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties have each acted knowledgeably, prudently and without compulsion.” “Asset includes property.” Council has identified the subject property by a copy of the location map and the plans provided by Cowra Council and based upon our visual inspection.

Community Land – Parkland, sporting grounds, reserves, land under public buildings (halls & community centres)

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): The NSW Valuer General’s valuations (as at 30 June 2016)

Council’s community land is land intended for public access and use, or where other restrictions applying to the land create some obligation to maintain public access (such as a trust deed, or dedication under section 94 of the Environmental Planning and Assessment Act 1979). This gives rise to the restrictions in the Act, intended to preserve the qualities of the land.

Community Land:

• Cannot be sold; • Cannot be leased, licensed, or any other estate granted over the land for more than 21 years; and • Must have a plan of management for it.

In relation to the valuing of Community Land the Office of Local Government has authorised the use of the NSW Valuer General’s valuations as a sufficient basis to represent fair value for the revaluation of community land under clause 31 of AASB 116.

page 68

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

Buildings -Specialised – Community halls, toilet blocks, council offices, library, civic centre, works depot

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Unit rates, useful life, asset condition

Council’s buildings were valued at fair value on 30th June 2013 in accordance with Compiled Accounting Standard AASB116 Property, Plant and Equipment, the guidance contained in the NSW Treasury Accounting Policy tpp 07-1 and the NSW Department of Local Government Guidelines. ‘Fair value’ is the best estimate of the price reasonably obtainable in the market at the date of valuation. As defined in AASB 116, it is “the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction”.

Council’s Specialised Buildings were valued by Scott Fullarton Valuation (SFV) P/L as at 30 June 2013. SFV provided a valuation for each building based on applying a unit rate to a structure or a square metre rate to a building, based on its current replacement cost, which is the lowest cost of replacing the economic benefits of the existing asset using modern technology. These rates were derived from substantial analysis of construction costs from over one hundred and twenty (120) Councils throughout New South Wales.

SFV estimated the Total Life and Residual Life of each building/structure and, where the building is considered a complex asset, for each component, as they have useful lives different from those of the non-current assets to which they relate. In regard to componentisation, Paragraph 43 of AASB116 requires each part of the asset with a cost that is significant in relation to the asset be depreciated separately (structure, internal finishes, electrical services, mechanical services, fire/security and roof).

Roads – Road surface, pavement, formation, major earthworks

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Replacement cost, residual value, split between short-life and long-life part, valuation profile and consumption score

Council’s road infrastructure assets were last valued on 1 July 2014 by APV Valuers & Asset Management. As per Paragraph 43 of AASB116, Council’s roads infrastructure assets were segmented and componentised into the following categories (each representing a significant part of the overall asset):

• Road Surface • Pavement

page 69

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

• Formation & Major Earthworks • Kerb and Gutter • Culverts

Roads – Sealed and Unsealed, Culverts and Kerb Gutter

Valuations were performed by APV Valuers & Asset Management using the assets data in Council’s Asset Management System.

Bridges – (excluding culverts under 6 metres in length)

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Replacement cost, split between short-life and long-life part, valuation profile and consumption score

Council’s bridge infrastructure assets were last valued on 1 July 2014 by APV Valuers & Asset Management.

. Footpaths – Footways including cycleways

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Replacement cost, split between short-life and long-life part, valuation profile and consumption score

Council’s bridge infrastructure assets were last valued on 1 July 2014 by APV Valuers & Asset Management.

Stormwater Drainage – includes pits, drains

Valuation Techniques: ‘Cost approach’ Inputs Used (Level 3): Replacement cost, split between short-life and long-life part, valuation profile and consumption score

Council’s bridge infrastructure assets were last valued on 1 July 2014 by APV Valuers & Asset Management.

page 70

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

Water Supply – water mains, pump stations, treatment plant, reservoirs, meters

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications

Council’s Water Supply was valued by CPE Associates as at 30 June 2012. The valuation was based on the NSW Office of Water’s NSW Reference Rates Tables issued in July 2012, a supplement to the former Ministry of Energy and Utilities 2003 document NSW Reference Rates Manual: Valuation of Water Supply, Sewerage and Stormwater Assets. Valuations in the updated tables are for June 2012.

The asset register was built using Council GIS data with modifications made to achieve the correct level of componentisation and to collect additional details regarding material and capacities of the assets.

CPE conducted a field survey, involving a physical inspection of the ground-level facility assets in the system such as treatment plants, pumping stations & reservoirs.

The object of the survey was to uncover any evidence that will challenge the default useful life for that asset class such as corrosion (or lack of), obvious mechanical/electrical defects or structural damage. Field survey sheets were completed and a photographic record also was made.

Unit rates were then applied across the network. Condition data was then applied to each individual asset to provide a written down value.

Sewerage Network – Sewer pipes, pump stations, treatment plant, telemetry system, manholes

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications Council’s Sewer Network was valued by CPE Associates as at 30 June 2012. The valuation was based on the NSW Office of Water’s NSW Reference Rates Tables issued in July 2012, a supplement to the former Ministry of Energy and Utilities 2003 document NSW Reference Rates Manual: Valuation of Water Supply, Sewerage and Stormwater Assets. Valuations in the updated tables are for June 2012.

page 71

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

The asset register was built using Council GIS data with modifications made to achieve the correct level of componentisation and to collect additional details regarding material and capacities of the assets.

CPE conducted a field survey, involving a physical inspection of the ground-level facility assets in the system such as treatment plants and pumping stations.

The object of the survey was to uncover any evidence that will challenge the default useful life for that asset class such as corrosion (or lack of), obvious mechanical/electrical defects or structural damage. Field survey sheets were completed and a photographic record also was made.

Unit rates were then applied across the network. Condition data was then applied to each individual asset to provide a written down value.

Swimming Pool

Council’s swimming pool was last valued as at 30 June 2016 based on a quotation from Swimplex Aquatics.

Other Assets - Structures, Skate Park, Netball Courts, Cricket Nets, Basketball Courts, Caravan Park Cabins, Play Units, Memorials and Sheds

Council’s other assets were last valued as at 30 June 2016

By using a combination of market information, unit rates and an expert knowledge in that area. The fair value was assessed by identifying individual assets, location and its services to the public.

Structures and shelters were valued by an independent valuer (Scott Fullarton Valuations Pty Ltd). The process included inspection, analysis and comparison with related assets and to provide a comprehensive valuation in accordance with AASB and OLG. The Gross Replacement Value is determined as at the date of valuation to allow for replacement with similar improvements in a condition equal to, but not better nor more extensive than, its condition when new. An additional allowance is made for professional costs such as architect, surveyor and consulting engineer fees. If the date of valuation differs significantly from the policy commencement date, then an adjustment to the value may be necessary.

BBQs - Market price based on quotation of “Mobile Outdoor Products” Quote.

page 72

Financial Statements 2016_

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

Balance of the assets in this class are based on internal knowledge of Manager – Cowra Services and Manager – Assets.

Quarry Assets – Reinstatement, rehabilitation and restoration

Valuation Techniques: ‘Cost approach’

Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications

It has been recognised that there will be significant costs associated with the closure and post closure management of the landfill and quarry sites. Closure of the landfill and quarry sites will involve a wide range of activities including final capping of the landfill waste and site re-vegetation, monitoring of landfill gas, revision of the surface water management system and leachate management infrastructure to suit post-closure operation.

Valuations are based on actual timing of costs and future environmental management requirement

page 73

Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

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.

Asset Asset Asset class class class here here here Total Total

Opening balance – 1/7/14 – – – 602,206 602,206

Purchases (GBV) – – – 6,140 6,140 Disposals (WDV) – – – (344) (344) Depreciation and impairment – – – (5,833) (5,833) FV gains – other comprehensive income – – – (14,625) (14,625)

Closing balance – 30/6/15 – – – 587,544 587,544

Purchases (GBV) – – – 6,846 6,846 Disposals (WDV) – – – (194) (194) Depreciation and impairment – – – (6,248) (6,248) FV gains – other comprehensive income – – – (13,608) (13,608)

Closing balance – 30/6/16 – – – 574,340 574,340

page 74 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3) (continued) 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.

Fair Valuation Unobservable Class value (30/6/16) technique/s inputs $’000

I,PP&E Gross replacement cost, residual value, 5,073 Cost used to approximate fair value Plant and equipment remaining useful life Gross replacement cost, residual value, 78 Cost used to approximate fair value Office furniture remaining useful life Gross replacement cost, residual value, 57 Cost used to approximate fair value Furniture and fittings remaining useful life

Operational land 7,087 Market Value Price per sq metre

Land values obtained from NSW Valuer 14,392 Land value, land area Community land General Unit rates, asset condition 20,743 Cost used to approximate fair value Buildings specialised remaining useful life Unit rates, asset condition 113,881 Cost used to approximate fair value Roads remaining useful life Unit rates, asset condition 23,703 Cost used to approximate fair value Bridges remaining useful life Unit rates, asset condition 7,475 Cost used to approximate fair value Footpaths remaining useful life Unit rates, asset condition 257,884 Cost used to approximate fair value Bulk earthworks remaining useful life Unit rates, asset condition 27,577 Cost used to approximate fair value Stormwater drainage remaining useful life Unit rates, asset condition 52,715 NSW Reference Rates Manual Water supply remaining useful life Unit rates, asset condition 33,343 NSW Reference Rates Manual Sewerage network remaining useful life Gross replacement cost, asset condition 1,187 Cost used to approximate fair value Swimming pools remaining useful life Other recreational Gross replacement cost, asset condition 2,392 Cost used to approximate fair value assets remaining useful life Gross replacement cost, asset condition 6,644 Cost used to approximate fair value Other assets remaining useful life Discounted Future Cash Flow, remaining 109 Cost used to approximate fair value Quarry assets life, remediation cost estimates

page 75 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 27. Fair value measurement (continued)

$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3) (continued) c. The valuation process for level 3 fair value measurements

The valuation processes have been described above.

Management determines who will undertake the valuations.

The level 3 valuations are reviewed by councils assets and finance staff post valuation.

Valuations are undertaken in house with the exception of Operational Land, Buildings, Roads including bridges, footpaths and bulk earthworks, stormwater drainage, water and sewer assets which were completed by external appointed by council.

(5). Highest and best use

All of Council’s non-financial assets are considered as being utilised for their highest and best use.

page 76 Financial Statements 2016

Cowra Shire Council

Notes to the Financial Statements for the year ended 30 June 2016

Note 28. Council information and contact details

Principal place of business: 116 Kendal Street Cowra NSW 2794

Contact details Mailing address: Opening hours: Private Bag 342 Monday to Friday Cowra NSW 2794 8:30am to 4:30 pm

Telephone: 02 6340 2000 Internet: www.cowracouncil.com.au Facsimile: 02 6340 2011 Email: [email protected]

Officers Elected members GENERAL MANAGER MAYOR Mr P Devery Cr WJ West

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORS Mr G Apthorpe

Other information ABN: 26 739 454 579

page 77

INDEPENDENT AUDITOR’S REPORT TO COUNCIL ON THE GENERAL PURPOSE FINANCIAL STATEMENTS OF COWRA SHIRE COUNCIL

Report on the Financial Statements

We have audited the accompanying financial statements of Cowra Shire Council (Council) for the financial year ended 30 June 2016. The financial statements comprise the Statement by Councillors and Management, Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and accompanying Notes to the Financial Statements.

Councils’ Responsibility for the Financial Statements

The Council are responsible for the preparation and fair presentation of the financial statements in accordance with the Local Government Act 1993. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are 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 the financial statements based on our audit. Our audit responsibility does not extend to the original budget figures included in the Income Statement and Statement of Cash Flows, the original budget disclosures in Notes 2(a) and 16, the projected revenue and expenditure of developer contributions reported in Note 17 and accordingly we express no opinion on them. 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 the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Council, as well as evaluating the overall presentation of the financial statements

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.

Liability limited by a scheme approved under Professional Standards Legislation page 78

Matters Relating to the Electronic Presentation of the Audited Financial Statements

This auditor’s report relates to the general purpose financial statements of Cowra Shire Council for the year ended 30 June 2016 included on Council’s web site. Council is responsible for the integrity of their web site. We have not been engaged to report on the integrity of the web site. The auditor’s report refers only to the statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial statements to confirm the information included in the audited financial statements presented on this web site.

Audit Opinion

In our opinion:

(a) the Council's accounting records have been kept in accordance with the requirements of the Local Government Act 1993, Chapter 13, Part 3, Division 2;

(b) the Council's financial statements:

(i) have been prepared in accordance with the requirements of this Division; (ii) are consistent with the Council's accounting records; (iii) present fairly the Council's financial position, the results of its operations and cashflows; and (iv) are in accordance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations).

(c) all information relevant to the conduct of the audit has been obtained; and

(d) there are no material deficiencies in the accounting records or financial statements that have come to light in the course of the audit.

14 Sale Street Orange NSW Dated: 25 October 2016

page 79

Thorough, Attentive, Earnest

JO’M:CSC002

25 October 2016

The Mayor Councillor Bill West Cowra Shire Council Private Bag 342 COWRA NSW 2794

Dear Mr Mayor

INDEPENDENT AUDITOR'S REPORT ON THE CONDUCT OF THE AUDIT OF COWRA SHIRE COUNCIL FOR THE YEAR ENDED 30 JUNE 2016

We have audited the financial statements of Cowra Shire Council (Council) for the financial year ended 30 June 2016. Our audit resulted in the issuing of an unmodified audit report on both the general purpose and special purpose financial statements of Council.

In accordance with Section 417 of the Local Government Act 1993 we submit our report on the conduct of the audit of Cowra Shire Council for the year ended 30 June 2016. Our audit reports on the general purpose financial statements of Council and the special purpose financial statements on Council’s business units outline the framework for our audit and should be referred to in order to establish the context in which our comments are made.

Council’s Responsibility for the Financial Statements

The Council is responsible for the preparation and fair presentation of the financial statements in accordance with the Local Government Act 1993. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements 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 the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Council, as well as evaluating the overall presentation of the financial statements.

The following comments are provided in accordance with Section 417(3) of the Local Government Act 1993 and Regulation 227 of the Local Government (General) Regulation 2005 to assist in the understanding of the financial statements and our reports.

PO Box 69, Orange NSW 2800 PO Box 9013, Bathurst West NSW 2795 14 Sale Street, Orange NSW 2800 291 Stewart Street, Bathurst NSW 2795 Phone: 02 6362 5100 Phone: 02 6333 7611 page 80 Liability limited by a scheme approved under Professional Standards Legislation

Review of Financial Results

(a) Operating Result

As disclosed in Council's Income Statement the year's operations resulted in a consolidated operating surplus of $2,292,000 (2015 - surplus $2,937,000). Selected items of note in the operating statement include:

 The operating result from ordinary activities before capital amounts was a surplus of $1,654,000 (2015 surplus – $2,449,000). Revenue

 User Charges and Fee income fell slightly to $12,876,000 (2015 - $13,677,000). The decrease coming mainly from a reduction in work opportunities on state roads controlled by Roads and Maritime Services (RMS).

 Other revenue was also a little lower at $829,000 (2015 - $1,329,000) largely due to the imposition in the 2015 year, of a substantial fine for the demolition of a house that was about to be heritage listed.

 Income from operating grants and contributions was higher at $7,330,000 (2015 - $6,423,000) the increase was primarily through increased “Roads to Recovery” funding.

Expenses

 Expenses across all categories were very similar to the 2015 year, typically falling within 5% of that level.

(b) Financial Position

The Statement of Financial Position discloses that for the year ended 30 June 2016 Council’s net assets stood at $574,477,000 (2015 - $585,793,000), which represents a decrease of $11,316,000. The decrease represents the net operating surplus after capital amounts of $2,292,000 and the overall net revaluation decrement of ($13,608,000) resulting from the revaluation of community land, other structure and other infrastructure assets combined with the indexed revaluation of water and sewerage infrastructure assets.

To assess the health of Council’s net current asset position (available working capital) it is necessary to review the level of restrictions placed against the use of Council’s assets. The notes to the financial statements indicate clearly where restrictions exist, and the effect of the restrictions is summarised on the following page.

page 81

2016 2015 $’000 $’000

Net Current Assets 18,417 16,277

Less: Amounts externally restricted for special purposes (17,251) (14,722) (refer Notes 6; 7; & 8 of financial statements)

Less: Council internally imposed restrictions (6,809) (5,581) (refer Note 6 of financial statements)

Add: Applicable current liabilities refer Note 10 - Water 806 705 - Sewerage 245 301 - Domestic Waste Management 31 34

Add: Employee Leave Entitlements to be paid > 12 months 3,500 3,600

Unrestricted net current asset surplus/(deficit) (1,061) 614

Unrestricted net current assets comprise: - Assets Cash 927 913 Receivables 736 1,324 Land held for resale - 195 Inventories 910 997 Other - 175

Less: General Purpose Liabilities (7,134) (6,590)

Add: Employee Leave Entitlementsto be paid > 12 months 3,500 3,600

Unrestricted net current asset surplus/(deficit) (1,061) 614

Although Council’s shows an apparent deficit of net current assets to cover the restrictions placed on those assets, the deficit is attributable to a $1,228,000 increase in internal restrictions, which can be altered at the discretion of council. As such, the deficit is not, of itself, a cause for concern regarding liquidity.

The following table shows the Council’s calculated net current asset position over the past four years:

$'000 Net Current Asset Position 25,000

20,000 Unrestricted 6,809 15,000 528 1,216 Internally Restricted 1,695 3,922 5,581 Externally Restricted 10,000 4,246 12,669 10,652 5,000 8,585 9,480

- -1,061 2013 2014 2015 2016 (5,000)

page 82

Cash & Investments

Note 6 to the accounts discloses total cash and investments of $22,270,000 (2015 - $18,638,000), of this amount $14,534,000 (2015 - $12,144,000) is subject to external restrictions requiring Council to commit those funds to the purposes for which they were provided and $6,809,000 (2015 - $5,581,000) is subject to internal restrictions agreed upon by Council for designated purposes. These internal restrictions may be altered at the discretion of Council, consistent with their management plan.

The unrestricted balance of $927,000 (2015 - $913,000) represents funds available to cover non-budgeted discretionary expenditure and short-term cash flow requirements.

Unrestricted 2015 Internally Restricted Externally Restricted

2016

0 5,000 10,000 15,000 20,000 25,000 $'000

Whilst the consolidated financial statements displays healthy levels of cash and investments, we remind the reader that the consolidated data is not necessarily reflective of the position of the individual funds (General, Water & Sewer) and this is equally applicable when reviewing the performance indicators considered below. General information on the financial position and performance by fund is provided in Note 21 to the financial statements.

page 83

(c) Performance Indicators

Note 13 to the Financial Statements provide a measure of Council’s performance using a number of selected ratios as follows:

Operating Performance Ratio

This ratio expresses council’s ability to keep operating expenses, including depreciation, within its continuing operating revenue. The outcome of 4.45% (2015 – 6.51%) represents the excess between continuing operating revenue and continuing operating expenses.

Unrestricted Current Ratio

The Unrestricted Current Ratio is a measure of Council's liquidity that demonstrates Council's ability to satisfy obligations out of short-term and immediate asset balances.

Council's ratio of 2.53:1 (2015 – 3.01:1) indicates council is able to meet its debts as and when they fall due.

Debt Service Cover Ratio

This ratio measures the ability of council to service debt by expressing that capacity as a multiple of the operating result from continuing operations, excluding capital items and depreciation / impairment, over the principal and interest costs.

At 3.83 times (2015 – 3.82 times) Cowra Shire Council’s ratio indicates that it can meet its current levels of debt.

Rates & Annual Charges, Interest & Extra Charges Outstanding Ratio - Note 13.5(b)

The rates and annual charges, interest and extra charges outstanding percentage is a measure of management efficiency. Because prevailing economic conditions and the timing of billing runs influence Council's ability to collect revenue, this supplementary ratio has been prepared to enable a comparison that excludes the items for which the charge has been raised just prior to the year end, so as of 30th June the bill has not yet been received by the customer and the amount is therefore not collectible.

Cowra Shire Council's rates and annual charges, interest and extra charges outstanding percentage based upon this revised measure becomes 4.08% (2015 – 5.58%) and has again improved compared with the prior period The “raw” measure, prior to modification is a still commendable 7.27% (2015 - 8.3%).

page 84

(d) Cash Flow Statement

It should be noted that cash for the purpose of this statement constitutes only cash and short-term (original term to maturity < three months), highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Accordingly, while the level of cash assets for the purpose of this statement has decreased, the combined value of cash and investments has increased by $1,969,000.

The Statement of Cash Flows reports a net decrease in cash assets held of $368,000 (2015 decrease - $10,031,000) as follows:

2016 2015 Movement $’000 $’000 $’000

Cash flow provided by / (used in)

Operating activities 8,962 9,337 (375)

Investing activities (10,453) (18,307) 7,854

Financing activities 1,123 (1,061) 2,184

Net increase / (decrease) in cash held (368) (10,031) (9,663)

Cash flows from operating activities

The cashflows provided by operating activities were reasonably consistent with the prior financial year.

Cash flows from investing activities

The major cash inflows and outflows from investing activities related to the sale and acquisition of infrastructure, property, plant and equipment and the net purchase of investment securities totaling $4,000,000.

Cash flows from financing activities

The cash outflow provided by financing activities totaled $1,123,000 and represents the drawdown of new loans totaling $2,129,000 less repayment of principal on council’s external borrowings of $1,006,000.

(e) Comparison of Actual and Budgeted Performance

Council’s operating surplus from ordinary activities after capital amounts of $2,292,000 came in remarkably close to the original estimate of a surplus of $2,440,000.

It is not the intent of this report to provide detailed analysis of individual budget variations. Note 16 of Council’s financial statements addresses the contributing factors to budget variations in detail.

page 85

(f) Other Matters

National Competition Policy

In accordance with the requirements of National Competition Policy guidelines, Cowra Shire Council has prepared special purpose financial statements on its business units for the year ended 30 June 2016. Council has determined that it has two business units within its operations: Water and Sewerage.

The Department of Local Government’s July 1997 guidelines ‘Pricing and Costing for Council Businesses: A Guide to Competitive Neutrality’ outlines the process for identifying and allocating costs of activities and provide a standard of disclosure requirements. These are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents, Council subsidies, rate of return on investments in business units and dividends paid.

An unmodified audit report on the special purpose statements for the year ended 30 June 2016 has been issued.

Management Letters

Our most recent management letter was issued on 1 July 2016. Our experience in subsequent visits has generally been that matters raised via management letters have been satisfactorily addressed.

(g) Progress of Asset Revaluation Program

Council’s asset revaluation program is in compliance with the timetable established by the Office of Local Government.

(h) Legislative compliance

As a result of our audit we advise that there are no material deficiencies in the accounting records or financial statements that have come to our attention during the conduct of the audit and that Cowra Shire Council’s accounting records have been kept in accordance with the requirements of the Local Government Act, 1993 and regulations.

Matters Relating to the Electronic Presentation of the Audited Financial Statements

This auditor’s report relates to the financial statements of Cowra Shire Council for the year ended 30 June 2016 included on Council’s web site. Council is responsible for the integrity of their web site. We have not been engaged to report on the integrity of the web site. The auditor’s report refers only to the statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial statements to confirm the information included in the audited financial statements presented on this web site.

Conclusion

(a) The Council’s accounting records have been kept in a manner and form that facilitated the preparation of the general purpose financial statements and allowed proper and effective audit of these statements;

(b) The Council’s accounting records have been kept in a manner and form that facilitated the preparation of the special purpose financial statements and allowed proper and effective audit of these statements; and

(c) All information relevant to the conduct of the audit has been obtained.

14 Sale Street Orange Dated: 25 October 2016 page 86

Cowra Shire Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2016

“A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living” SPFS 2016

Cowra Shire Council

Special Purpose Financial Statements for the year ended 30 June 2016

Contents Page

1. Statement by Councillors and Management 2

2. Special Purpose Financial Statements:

Income Statement – Water Supply Business Activity 3 Income Statement – Sewerage Business Activity 4 Income Statement – Other Business Activities n/a

Statement of Financial Position – Water Supply Business Activity 5 Statement of Financial Position – Sewerage Business Activity 6 Statement of Financial Position – Other Business Activities n/a

3. Notes to the Special Purpose Financial Statements 7

4. Auditor’s Report 16

Background

(i) These Special Purpose Financial Statements have been prepared for the use by both Council and the Office 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 and 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 more than $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 and debt guarantee fees (where the business benefits from Council's borrowing position by comparison with commercial rates).

page 1

SPFS 2016

Cowra Shire Council

Income Statement of Council's Water Supply Business Activity for the year ended 30 June 2016

Actual Actual $ ’000 2016 2015

Income from continuing operations Access charges 1,408 1,360 User charges 4,600 4,332 Fees 75 121 Interest 27 39 Grants and contributions provided for non-capital purposes 124 152 Profit from the sale of assets – 14 Other income 829 825 Total income from continuing operations 7,063 6,843

Expenses from continuing operations Employee benefits and on-costs 1,059 995 Borrowing costs 443 469 Materials and contracts 2,984 2,906 Depreciation and impairment 1,816 1,756 Water purchase charges 244 334 Loss on sale of assets – – Calculated taxation equivalents 9 13 Debt guarantee fee (if applicable) – – Other expenses 521 587 Total expenses from continuing operations 7,076 7,060 Surplus (deficit) from continuing operations before capital amounts (13) (217)

Grants and contributions provided for capital purposes 33 210 Surplus (deficit) from continuing operations after capital amounts 20 (7)

Surplus (deficit) from discontinued operations – – Surplus (deficit) from all operations before tax 20 (7) Less: corporate taxation equivalent (30%) [based on result before capital] – –

SURPLUS (DEFICIT) AFTER TAX 20 (7)

Plus opening retained profits 17,105 17,110 Plus/less: prior period adjustments – (11) Plus adjustments for amounts unpaid: – Taxation equivalent payments 9 13 – Debt guarantee fees – – – Corporate taxation equivalent – – Less: – Tax equivalent dividend paid – – – Surplus dividend paid – – Closing retained profits 17,134 17,105

Return on capital % 0.8% 0.5% Subsidy from Council 657 1,397

Calculation of dividend payable: Surplus (deficit) after tax 20 (7) Less: capital grants and contributions (excluding developer contributions) – (210) Surplus for dividend calculation purposes 20 – Potential dividend calculated from surplus 10 –

page 3 SPFS 2016

Cowra Shire Council

Income Statement of Council's Sewerage Business Activity for the year ended 30 June 2016

Actual Actual $ ’000 2016 2015

Income from continuing operations Access charges 2,386 2,307 User charges 623 588 Liquid trade waste charges 65 65 Fees – – Interest 30 27 Grants and contributions provided for non-capital purposes 45 45 Profit from the sale of assets – 1 Other income 214 208 Total income from continuing operations 3,363 3,241

Expenses from continuing operations Employee benefits and on-costs 288 359 Borrowing costs 563 572 Materials and contracts 1,341 1,079 Depreciation and impairment 580 555 Loss on sale of assets – – Calculated taxation equivalents 10 24 Debt guarantee fee (if applicable) – – Other expenses 195 220 Total expenses from continuing operations 2,977 2,809 Surplus (deficit) from continuing operations before capital amounts 386 432

Grants and contributions provided for capital purposes 64 – Surplus (deficit) from continuing operations after capital amounts 450 432

Surplus (deficit) from discontinued operations – – Surplus (deficit) from all operations before tax 450 432 Less: corporate taxation equivalent (30%) [based on result before capital] (116) (130)

SURPLUS (DEFICIT) AFTER TAX 334 302

Plus opening retained profits 19,208 18,756 Plus/less: prior period adjustments – (4) Plus adjustments for amounts unpaid: – Taxation equivalent payments 10 24 – Debt guarantee fees – – – Corporate taxation equivalent 116 130 Less: – Tax equivalent dividend paid – – – Surplus dividend paid – – Closing retained profits 19,668 19,208

Return on capital % 2.7% 2.8% Subsidy from Council – 68

Calculation of dividend payable: Surplus (deficit) after tax 334 302 Less: capital grants and contributions (excluding developer contributions) – – Surplus for dividend calculation purposes 334 302 Potential dividend calculated from surplus 167 151

page 4 SPFS 2016

Cowra Shire Council

Statement of Financial Position – Council's Water Supply Business Activity as at 30 June 2016

Actual Actual $ ’000 2016 2015

ASSETS Current assets Cash and cash equivalents 801 855 Investments 3,370 2,856 Receivables 2,115 1,977 Inventories 3 3 Other – – Non-current assets classified as held for sale – – Total current assets 6,289 5,691

Non-current assets Investments – – Receivables – – Inventories – – Infrastructure, property, plant and equipment 54,646 55,336 Investments accounted for using equity method – – Investment property – – Intangible assets – – Other – – Total non-current assets 54,646 55,336 TOTAL ASSETS 60,935 61,027

LIABILITIES Current liabilities Bank overdraft – – Payables 83 58 Borrowings 459 432 Provisions 257 248 Total current liabilities 799 738

Non-current liabilities Payables – – Borrowings 6,844 7,303 Provisions 7 4 Total non-current liabilities 6,851 7,307 TOTAL LIABILITIES 7,650 8,045 NET ASSETS 53,285 52,982

EQUITY Retained earnings 17,134 17,105 Revaluation reserves 36,151 35,877 Council equity interest 53,285 52,982 Non-controlling equity interest – – TOTAL EQUITY 53,285 52,982

page 5 SPFS 2016

Cowra Shire Council

Statement of Financial Position – Council's Sewerage Business Activity as at 30 June 2016

Actual Actual $ ’000 2016 2015

ASSETS Current assets Cash and cash equivalents 1,237 1,381 Investments 5,212 4,578 Receivables 360 344 Inventories – – Other – – Non-current assets classified as held for sale – – Total Current Assets 6,809 6,303

Non-current assets Investments – – Receivables – – Inventories – – Infrastructure, property, plant and equipment 35,129 35,755 Investments accounted for using equity method – – Investment property – – Intangible assets – – Other – – Total non-current assets 35,129 35,755 TOTAL ASSETS 41,938 42,058

LIABILITIES Current liabilities Bank overdraft – – Payables 53 105 Borrowings 99 125 Provisions 93 83 Total current liabilities 245 313

Non-current liabilities Payables – – Borrowings 6,718 6,816 Provisions – 8 Total non-current liabilities 6,718 6,824 TOTAL LIABILITIES 6,963 7,137 NET ASSETS 34,975 34,921

EQUITY Retained earnings 19,668 19,208 Revaluation reserves 15,307 15,713 Council equity interest 34,975 34,921 Non-controlling equity interest – – TOTAL EQUITY 34,975 34,921

page 6 SPFS 2016

Cowra Shire Council

Special Purpose Financial Statements for the year ended 30 June 2016

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 11

3 Sewerage Business Best-Practice Management disclosure requirements 13

page 7

SPFS 2016_

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 1. Significant accounting policies

These financial statements are a Special Purpose The pricing and costing guidelines outline the Financial Statements (SPFS) prepared for use by process for identifying and allocating costs to Council and the Office of Local Government. activities and provide standards for disclosure. These disclosures are reflected in Council’s pricing and/or For the purposes of these statements, the Council is financial reporting systems and include taxation not a reporting not-for-profit entity. equivalents, Council subsidies, return on investments (rate of return), and dividends paid. The figures presented in the SPFS, unless otherwise stated, have been prepared in accordance with: Declared business activities

. the recognition and measurement criteria of In accordance with Pricing and 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), and Category 1

. Australian Accounting Interpretations. (where gross operating turnover is over $2 million)

The disclosures in the SPFS have been prepared in a. Cowra Shire Council Water Supply accordance with: Water supply activities servicing the town of . the Local Government Act (1993) NSW, Cowra, surrounding villages & rural properties.

. the Local Government (General) Regulation, and b. Cowra Shire Sewerage Service . the Local Government Code of Accounting Practice and Financial Reporting. Sewerage reticulation & treatment activities servicing the town of Cowra. The statements are also prepared on an accruals basis, based on historic costs and do not take into Category 2 account changing money values nor current values (where gross operating turnover is less than $2 million) of non-current assets (except where specifically stated). NIL

Certain taxes and other costs (appropriately Monetary amounts described) have been imputed for the purposes of the National Competition Policy. Amounts shown in the financial statements are in Australian currency and rounded to the nearest National Competition Policy thousand dollars, with the exception of some figures disclosed in Note 2 (Water Supply Best-Practice Council has adopted the principle of ‘competitive Management Disclosures) and Note 3 (Sewerage neutrality’ to its business activities as part of the Best-Practice Management Disclosures). national competition policy which is being applied throughout Australia at all levels of government. As required by the NSW Office of Water (Department of Primary Industries) the amounts shown in Note 2 The framework for its application is set out in the and Note 3 are disclosed in whole dollars. June 1996 government policy statement, Application of National Competition Policy to Local Government. (i) Taxation-equivalent charges The Pricing and Costing for Council Businesses, A Guide to Competitive Neutrality, issued by the Office Council is liable to pay various taxes and financial of Local Government in July 1997, has also been duties in undertaking its business activities. Where adopted. this is the case, they are disclosed in these

page 8

SPFS 2016_

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 1. Significant accounting policies (continued)

statements as a cost of operations just like all other While income tax is not a specific cost for the costs. purpose of pricing a good or service, it needs to be taken into account in terms of assessing the rate of However, where Council is exempt from paying taxes return required on capital invested. which are generally paid by private sector businesses (such as income tax), equivalent tax Accordingly, the return on capital invested is set at a payments have been applied to all Council- pre-tax level (gain or loss from ordinary activities nominated business activities and are reflected in before capital amounts) as would be applied by a these financial statements. private sector competitor – that is, it should include a provision equivalent to the corporate income tax rate, For the purposes of disclosing comparative currently 30%. information relevant to the private sector equivalent, the following taxation equivalents have been applied Income tax is only applied where a positive gain/ to all Council-nominated business activities (this (loss) from ordinary activities before capital amounts does not include Council’s non-business activities): has been achieved.

Notional rate applied (%) Since this taxation equivalent is notional – that is, it is payable to Council as the ‘owner’ of business Corporate income tax rate – 30% operations, it represents an internal payment and has no effect on the operations of the Council. Land tax – the first $482,000 of combined land Accordingly, there is no need for disclosure of values attracts 0%. For that valued from $482,001 to internal charges in Council’s General Purpose $2,947,000 the rate is 1.6% + $100. For the Financial Statements. remaining combined land value that exceeds $2,947,000, a premium marginal rate of 2.0% The 30% rate applied is the equivalent company tax applies. rate prevalent as at balance date. No adjustments have been made for variations that have occurred Payroll tax – 5.45% on the value of taxable salaries during the year. and wages in excess of $750,000. Local government rates and charges In accordance with the Best-Practice Management of Water Supply and Sewerage Guidelines, a payment A calculation of the equivalent rates and charges for the amount calculated as the annual tax payable on all category 1 businesses has been equivalent charges (excluding income tax) must be applied to all land assets owned or exclusively used paid from water supply and sewerage business by the business activity. activities. Loan and debt guarantee fees The payment of taxation equivalent charges, referred in the Best-Practice Management of Water Supply The debt guarantee fee is designed to ensure that and Sewerage Guidelines to as a ‘dividend for council business activities face ‘true’ commercial taxation equivalent’, may be applied for any purpose borrowing costs in line with private sector allowed under the Local Government Act, 1993. competitors.

Achievement of substantial compliance against the In order to calculate a debt guarantee fee, Council Best-Practice Management of Water Supply and has determined what the differential borrowing rate Sewerage Guidelines is not a prerequisite for the would have been between the commercial rate and payment of the tax equivalent charges, however the Council’s borrowing rate for its business activities. payment must not exceed $3 per assessment.

Income tax (ii) Subsidies

An income tax equivalent has been applied on the Government policy requires that subsidies provided profits of each reported business activity. to customers, and the funding of those subsidies, must be explicitly disclosed.

page 9

SPFS 2016_

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 1. Significant accounting policies (continued)

Subsidies occur when Council provides services on a Water Supply and Sewerage Guidelines, must not less-than-cost-recovery basis. This option is exceed either: exercised on a range of services in order for Council to meet its community service obligations. (i) 50% of this surplus in any one year, or

Accordingly, ‘subsidies disclosed’ (in relation to (ii) the number of water supply or sewerage National Competition Policy) represents the assessments at 30 June 2016 multiplied by $30 difference between revenue generated from ‘rate of (less the payment for tax equivalent charges, not return’ pricing and revenue generated from prices set exceeding $3 per assessment). by Council in any given financial year. In accordance with the Best-Practice Management of The overall effect of subsidies is contained within the Water Supply and Sewerage Guidelines, a Dividend Income Statement of each reported business activity. Payment Form, Statement of Compliance, Unqualified Independent Financial Audit Report and Compliance Audit Report are required to be (iii) Return on investments (rate of return) submitted to the NSW Office of Water prior to making the dividend and only after it has approved the The policy statement requires that councils with payment. 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 year bond rate which is 1.99% at 30/6/16.

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.

Local government water supply and sewerage businesses are permitted to pay an annual dividend from its water supply or sewerage business surplus.

The dividend, calculated and approved in accordance with the Best-Practice Management of

page 10

SPFS 2016

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 2. Water supply business best-practice management disclosure requirements

Dollars amounts shown below are in whole dollars (unless otherwise indicated) 2016

1. Calculation and payment of tax-equivalents [all local government local water utilities must pay this dividend for tax equivalents]

(i) Calculated tax equivalents 9,000

(ii) Number of assessments multiplied by $3/assessment 18,432

(iii) Amounts payable for tax equivalents [lesser of (i) and (ii)] 9,000

(iv) Amounts actually paid for tax equivalents –

2. Dividend from surplus (i) 50% of surplus before dividends 10,000 [calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

(ii) Number of assessments multiplied by $30/assessment, less tax equivalent 175,320 charges/assessment

(iii) Cumulative surplus before dividends for the 3 years to 30 June 2016, less the cumulative dividends paid for the 2 years to 30 June 2015 and 30 June 2014 (1,280,000)

2016 Surplus 20,000 2015 Surplus (217,000) 2014 Surplus (1,083,000) 2015 Dividend – 2014 Dividend –

(iv) Maximum dividend from surplus [least of (i), (ii) and (iii) above] n/a

(v) Dividend actually paid from surplus [refer below for required pre-dividend payment criteria] –

(vi) Are the overhead reallocation charges to the water business fair and reasonable? a YES

3. Required outcomes for 6 criteria [to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

(i) Completion of strategic business plan (including financial plan) YES

(ii) Full cost recovery, without significant cross subsidies YES [refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

– Complying charges [item 2 (b) in table 1] YES – DSP with commercial developer charges [item 2 (e) in table 1] YES

– If dual water supplies, complying charges [item 2 (g) in table 1] YES

(iii) Sound water conservation and demand management implemented YES

(iv) Sound drought management implemented YES

(v) Complete performance reporting form (by 15 September each year) YES

(vi) a. Integrated water cycle management evaluation YES

b. Complete and implement integrated water cycle management strategy NO

page 11 SPFS 2016

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 2. Water supply business best-practice management disclosure requirements (continued)

Dollars amounts shown below are in whole dollars (unless otherwise indicated) 2016

National Water Initiative (NWI) financial performance indicators

NWI F1 Total revenue (water) $’000 7,078 Total income (w13) – grants for the acquisition of assets (w11a) – interest income (w9) – Aboriginal Communities W&S Program income (w10a)

NWI F4 Revenue from residential usage charges (water) % 76.98% Income from residential usage charges (w6b) x 100 divided by the sum of [income from residential usage charges (w6a) + income from residential access charges (w6b)]

NWI F9 Written down replacement cost of fixed assets (water) $’000 52,715 Written down current cost of system assets (w47)

NWI F11 Operating cost (OMA) (water) $’000 3,978 Management expenses (w1) + operational and maintenance expenses (w2)

NWI F14 Capital expenditure (water) $’000 769 Acquisition of fixed assets (w16)

NWI F17 Economic real rate of return (water) % 2.35% [total income (w13) – interest income (w9) – grants for acquisition of assets (w11a) – operating costs (NWI F11) – current cost depreciation (w3)] x 100 divided by [written down current cost of system assets (w47) + plant and equipment (w33b)]

NWI F26 Capital works grants (water) $’000 – Grants for the acquisition of assets (w11a)

Notes: 1. References to w (e.g. w12) refer to item numbers within Special Schedules 3 and 4 of Council’s Annual Financial Statements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban Performance Reporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

page 12 SPFS 2016

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 3. Sewerage business best-practice management disclosure requirements

Dollars amounts shown below are in whole dollars (unless otherwise indicated) 2016

1. Calculation and payment of tax-equivalents [all local government local water utilities must pay this dividend for tax equivalents]

(i) Calculated tax equivalents 10,000

(ii) Number of assessments multiplied by $3/assessment 11,241

(iii) Amounts payable for tax equivalents [lesser of (i) and (ii)] 10,000

(iv) Amounts actually paid for tax equivalents –

2. Dividend from surplus

(i) 50% of surplus before dividends 167,100 [calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

(ii) Number of assessments x ($30 less tax equivalent charges per assessment) 102,410

(iii) Cumulative surplus before dividends for the 3 years to 30 June 2016, less the cumulative dividends paid for the 2 years to 30 June 2015 and 30 June 2014 934,200

2016 Surplus 334,200 2015 Surplus 302,400 2014 Surplus 297,600 2015 Dividend – 2014 Dividend –

(iv) Maximum dividend from surplus [least of (i), (ii) and (iii) above] 102,410

(v) Dividend actually paid from surplus [refer below for required pre-dividend payment criteria] –

a (vi) Are the overhead reallocation charges to the sewer business fair and reasonable? YES

3. Required outcomes for 4 criteria [to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

(i) Completion of strategic business plan (including financial plan) YES

(ii) Pricing with full cost-recovery, without significant cross subsidies YES [refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

Complying charges (a) Residential [item 2 (c) in table 1] YES (b) Non-residential [item 2 (c) in table 1] YES (c) Trade waste [item 2 (d) in table 1] YES DSP with commercial developer charges [item 2 (e) in table 1] YES

Liquid trade waste approvals and policy [item 2 (f) in table 1] YES

(iii) Complete performance reporting form (by 15 September each year) YES

(iv) a. Integrated water cycle management evaluation YES

b. Complete and implement integrated water cycle management strategy NO

page 13 SPFS 2016

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 3. Sewerage business best-practice management disclosure requirements (continued)

Dollars amounts shown below are in whole dollars (unless otherwise indicated) 2016

National Water Initiative (NWI) financial performance indicators

NWI F2 Total revenue (sewerage) $’000 3,410 Total income (s14) – grants for acquisition of assets (s12a) – interest income (s10) – Aboriginal Communities W&S Program income (w10a)

NWI F10 Written down replacement cost of fixed assets (sewerage) $’000 33,343 Written down current cost of system assets (s48)

NWI F12 Operating cost (sewerage) $’000 1,753 Management expenses (s1) + operational and maintenance expenses (s2)

NWI F15 Capital expenditure (sewerage) $’000 322 Acquisition of fixed assets (s17)

NWI F18 Economic real rate of return (sewerage) % 3.07% [total income (s14) – interest income (s10) – grants for acquisition of assets (s12a) – operating cost (NWI F12) – current cost depreciation (s3)] x 100 divided by [written down current cost (i.e. WDCC) of system assets (s48) + plant and equipment (s34b)]

NWI F27 Capital works grants (sewerage) $’000 – Grants for the acquisition of assets (12a)

National Water Initiative (NWI) financial performance indicators Water and sewer (combined)

NWI F3 Total income (water and sewerage) $’000 10,488 Total income (w13 + s14) + gain/loss on disposal of assets (w14 + s15) minus grants for acquisition of assets (w11a + s12a) – interest income (w9 + s10)

NWI F8 Revenue from community service obligations (water and sewerage) % 1.06% Community service obligations (NWI F25) x 100 divided by total income (NWI F3)

NWI F16 Capital expenditure (water and sewerage) $’000 1,091 Acquisition of fixed assets (w16 + s17)

NWI F19 Economic real rate of return (water and sewerage) % 2.63% [total income (w13 + s14) – interest income (w9 + s10) – grants for acquisition of assets (w11a + s12a) – operating cost (NWI F11 + NWI F12) – current cost depreciation (w3 + s3)] x 100 divided by [written down replacement cost of fixed assets (NWI F9 + NWI F10) + plant and equipment (w33b + s34b)]

NWI F20 Dividend (water and sewerage) $’000 – Dividend paid from surplus (2 (v) of Note 2 + 2 (v) of Note 3)

NWI F21 Dividend payout ratio (water and sewerage) % 0.00% Dividend (NWI F20) x 100 divided by net profit after tax (NWI F24)

page 14 SPFS 2016

Cowra Shire Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2016

Note 3. Sewerage business best-practice management disclosure requirements (continued)

Dollars amounts shown below are in whole dollars (unless otherwise indicated) 2016

National Water Initiative (NWI) financial performance indicators Water and sewer (combined)

NWI F22 Net debt to equity (water and sewerage) % 3.97% Overdraft (w36 + s37) + borrowings (w38 + s39) – cash and investments (w30 + s31) x 100 divided by [total assets (w35 + s36) – total liabilities (w40 + s41)]

NWI F23 Interest cover (water and sewerage) - Earnings before interest and tax (EBIT) divided by net interest

Earnings before interest and tax (EBIT): 2,361 Operating result (w15a + s16a) + interest expense (w4a + s4a) – interest income (w9 + s10) – gain/loss on disposal of assets (w14 + s15) + miscellaneous expenses (w4b + w4c + s4b + s4c)

Net interest: 971 Interest expense (w4a + s4a) – interest income (w9 + s10)

NWI F24 Net profit after tax (water and sewerage) $’000 489 Surplus before dividends (w15a + s16a) – tax equivalents paid (Note 2-1 (iv) + Note 3-1 (iv))

NWI F25 Community service obligations (water and sewerage) $’000 111 Grants for pensioner rebates (w11b + s12b)

Notes: 1. References to w (eg. s12) refer to item numbers within Special Schedules 5 and 6 of Council’s Annual Financial Statements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban Performance Reporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

page 15 INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL ON THE SPECIAL PURPOSE FINANCIAL STATEMENTS OF COWRA SHIRE COUNCIL

Report on the Financial Statements

We have audited the special purpose financial statements of Cowra Shire Council for the year ended 30 June 2016, comprising the Statement by Council, Income Statement by Business Activities, Statement of Financial Position by Business Activities, and accompanying Notes to the Financial Statements. Our audit responsibility does not extend to the best practice management disclosures in Notes 2 and 3 and accordingly we express no opinion on them.

Councils’ Responsibility for the Financial Statements

The Council are responsible for the preparation and fair presentation of the financial statements and have determined that the accounting policies described in Note 1 to the financial statements are appropriate to meet the financial reporting requirements of the Council and the Office of Local Government for the purpose of fulfilling the requirements of National Competition Policy reporting. The Council's responsibility also includes establishing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the Council. 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 the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial statements 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council as well as evaluating the overall presentation of the financial statements.

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.

Liability limited by a scheme approved under Professional Standards Legislation page 16

Matters Relating to the Electronic Presentation of the Audited Financial Statements

This auditor’s report relates to the special purpose financial statements of Cowra Shire Council for the year ended 30 June 2016 included on Council’s web site. Council is responsible for the integrity of their web site. We have not been engaged to report on the integrity of the web site. The auditor’s report refers only to the statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial statements to confirm the information included in the audited financial statements presented on this web site.

Audit Opinion

In our opinion, the special purpose financial statements of Cowra Shire Council are presented fairly in accordance with the requirements of those applicable accounting policies detailed in Note 1, the accounting requirements of the Local Government Act 1993 and the Local Government Code of Accounting Practice and Financial Reporting.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial statements, which describes the basis of accounting. The special purpose financial statements have been prepared for distribution to the Council and the Office of Local Government for the purpose of fulfilling the requirements of National Competition Policy reporting. As a result, the financial statements may not be suitable for another purpose. We disclaim any assumption of responsibility for any reliance on this report or on the financial statements to which it relates to any person other than the Council or the Office of Local Government or for any purpose other than for which the statements were prepared.

14 Sale Street Orange NSW Dated: 25 October 2016

page 17

Cowra Shire Council SPECIAL SCHEDULES for the year ended 30 June 2016

“A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living” Special Schedules 2016

Cowra Shire Council

Special Schedules for the year ended 30 June 2016

Contents Page

Special Schedules1

Special Schedule 1 Net Cost of Services 2

Special Schedule 2(a) Statement of Long Term Debt (all purposes) 4 Special Schedule 2(b) Statement of Internal Loans (Sect. 410(3) LGA 1993) n/a

Special Schedule 3 Water Supply Operations – incl. Income Statement 5 Special Schedule 4 Water Supply – Statement of Financial Position 8

Special Schedule 5 Sewerage Service Operations – incl. Income Statement 9 Special Schedule 6 Sewerage Service – Statement of Financial Position 12

Notes to Special Schedules 3 and 5 13

Special Schedule 7 Report on Infrastructure Assets 14

Special Schedule 8 Permissible Income Calculation 19

1 Special Schedules are not audited (with the exception of Special Schedule 8).

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.

page 1 Special Schedules 2016

Cowra Shire Council

Special Schedule 1 – Net Cost of Services for the year ended 30 June 2016

$’000 Expenses from. Income from Net cost. Function or activity continuing. continuing operations of services. operations. Non-capital. Capital.

Governance 336 – – (336)

Administration 3,522 277 – (3,245)

Public order and safety Fire service levy, fire protection, emergency services 421 47 360 (14) Beach control – – – – Enforcement of local government regulations – – – – Animal control 247 137 – (110) Other – – – – Total public order and safety 668 184 360 (124)

Health 3 8 – 5

Environment Noxious plants and insect/vermin control 384 70 – (314) Other environmental protection 568 101 – (467) Solid waste management 2,679 2,979 7 307 Street cleaning 97 – – (97) Drainage 24 – 1 (23) Stormwater management 265 – – (265) Total environment 4,017 3,150 8 (859)

Community services and education Administration and education 163 18 – (145) Social protection (welfare) – – – – Aged persons and disabled – – – – Children’s services – – – – Total community services and education 163 18 – (145)

Housing and community amenities Public cemeteries 247 319 – 72 Public conveniences 83 – – (83) Street lighting 259 66 – (193) Town planning 1,240 165 13 (1,062) Other community amenities 61 – – (61) Total housing and community amenities 1,890 550 13 (1,327)

Water supplies 6,273 6,263 33 23

Sewerage services 2,838 3,232 64 458

page 2 Special Schedules 2016

Cowra Shire Council

Special Schedule 1 – Net Cost of Services (continued) for the year ended 30 June 2016

$’000 Expenses from. Income from Net cost. Function or activity continuing. continuing operations of services. operations. Non-capital. Capital.

Recreation and culture Public libraries 320 46 7 (267) Museums – – – – Art galleries 256 48 – (208) Community centres and halls 115 30 1 (84) Performing arts venues – – – – Other performing arts – – – – Other cultural services 114 18 – (96) Sporting grounds and venues 247 22 – (225) Swimming pools 333 189 – (144) Parks and gardens (lakes) 2,080 4 50 (2,026) Other sport and recreation 27 2 – (25) Total recreation and culture 3,492 359 58 (3,075)

Fuel and energy – – – –

Agriculture – – – –

Mining, manufacturing and construction Building control – 172 – 172 Other mining, manufacturing and construction 42 – – (42) Total mining, manufacturing and const. 42 172 – 130

Transport and communication Urban roads (UR) – local 347 – 52 (295) Urban roads – regional – – – – Sealed rural roads (SRR) – local 2,567 1,848 – (719) Sealed rural roads (SRR) – regional 501 501 – – Unsealed rural roads (URR) – local – – – – Unsealed rural roads (URR) – regional – – – – Bridges on UR – local 1 – – (1) Bridges on SRR – local 39 – – (39) Bridges on URR – local – – – – Bridges on regional roads – – – – Parking areas – – – – Footpaths 25 25 – – Aerodromes 160 20 – (140) Other transport and communication – – 50 50 Total transport and communication 3,640 2,394 102 (1,144)

Economic affairs Camping areas and caravan parks 392 508 – 116 Other economic affairs 5,110 5,822 – 712 Total economic affairs 5,502 6,330 – 828 Totals – functions 32,386 22,937 638 (8,811) General purpose revenues (1) 11,103 11,103 Share of interests – joint ventures and associates using the equity method – – – (2) NET OPERATING RESULT 32,386 34,040 638 2,292

(1) Includes: rates and annual charges (including ex gratia, excluding water and sewer), non-capital general purpose (2) As reported in the Income Statement grants, interest on investments (excluding externally restricted assets) and interest on overdue rates and annual charges

page 3 Special Schedules 2016 Cowra Shire Council

Special Schedule 2(a) – Statement of Long Term Debt (all purpose) for the year ended 30 June 2016

$’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 1,007 18,274 19,281 2,129 1,006 – – 1,342 1,185 19,219 20,404 Other – – – – – Total loans 1,007 18,274 19,281 2,129 1,006 – – 1,342 1,185 19,219 20,404

Other long term debt Ratepayers advances – – – – – Government advances – – – – – Finance leases – – – – – Deferred payments – – – – – Total long term debt – – – – – – – – – – – p Spe a pag Total debt 1,007 18,274 19,281 2,129 1,006 – – 1,342 1,185 19,219 20,404

Notes: excludes (i) internal loans and (ii) principal inflows/outflows relating to loan re-financing. This schedule is prepared using the face value of debt obligations, rather than fair value (which are reported in the GPFS).

page 4 Special Schedules 2016

Cowra Shire Council

Special Schedule 3 – Water Supply Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

A Expenses and income Expenses

1. Management expenses a. Administration 36 31 b. Engineering and supervision 300 291

2. Operation and maintenance expenses – dams and weirs a. Operation expenses – – b. Maintenance expenses – –

– Mains c. Operation expenses 98 89 d. Maintenance expenses 528 550

– Reservoirs e. Operation expenses – – f. Maintenance expenses 77 62

– Pumping stations g. Operation expenses (excluding energy costs) 86 51 h. Energy costs 388 449 i. Maintenance expenses – –

– Treatment j. Operation expenses (excluding chemical costs) 360 541 k. Chemical costs 172 230 l. Maintenance expenses 159 45

– Other m. Operation expenses 1,529 1,316 n. Maintenance expenses 1 3 o. Purchase of water 244 334

3. Depreciation expenses a. System assets 1,701 1,645 b. Plant and equipment 115 111

4. Miscellaneous expenses a. Interest expenses 443 469 b. Revaluation decrements – – c. Other expenses 830 830 d. Impairment – system assets – – e. Impairment – plant and equipment – – f. Aboriginal Communities Water and Sewerage Program – – g. Tax equivalents dividends (actually paid) – –

5. Total expenses 7,067 7,047

page 5 Special Schedules 2016

Cowra Shire Council

Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

Income

6. Residential charges a. Access (including rates) 852 806 b. Usage charges 2,849 2,653

7. Non-residential charges a. Access (including rates) 556 554 b. Usage charges 1,751 1,679

8. Extra charges 9 27

9. Interest income 18 12

10. Other income 904 946 10a. Aboriginal Communities Water and Sewerage Program – –

11. Grants a. Grants for acquisition of assets – 201 b. Grants for pensioner rebates 66 67 c. Other grants 58 85

12. Contributions a. Developer charges 33 9 b. Developer provided assets – – c. Other contributions – –

13. Total income 7,096 7,039

14. Gain (or loss) on disposal of assets – 14

15. Operating result 29 6

15a. Operating result (less grants for acquisition of assets) 29 (195)

page 6 Special Schedules 2016

Cowra Shire Council

Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

B Capital transactions Non-operating expenditures

16. Acquisition of fixed assets a. New assets for improved standards 360 1,069 b. New assets for growth – – c. Renewals 385 520 d. Plant and equipment 24 133

17. Repayment of debt 432 412

18. Totals 1,201 2,134

Non-operating funds employed

19. Proceeds from disposal of assets – 23

20. Borrowing utilised – 722

21. Totals – 745

C Rates and charges

22. Number of assessments a. Residential (occupied) 4,718 4,694 b. Residential (unoccupied, ie. vacant lot) 444 460 c. Non-residential (occupied) 982 976 d. Non-residential (unoccupied, ie. vacant lot) – –

23. Number of ETs for which developer charges were received 7 ET 2 ET

24. Total amount of pensioner rebates (actual dollars) $ 119,711 $ 122,167

page 7 Special Schedules 2016

Cowra Shire Council

Special Schedule 4 – Water Supply Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2016

Actuals Actuals Actuals $’000 Current Non-current Total

ASSETS 25. Cash and investments a. Developer charges 651 – 651 b. Special purpose grants – – – c. Accrued leave 91 – 91 d. Unexpended loans – – – e. Sinking fund – – – f. Other 3,429 – 3,429

26. Receivables a. Specific purpose grants 65 – 65 b. Rates and availability charges 529 – 529 c. User charges 1,521 – 1,521 d. Other – – –

27. Inventories 3 – 3

28. Property, plant and equipment a. System assets – 52,715 52,715 b. Plant and equipment – 1,931 1,931

29. Other assets – – – 30. Total assets 6,289 54,646 60,935

LIABILITIES 31. Bank overdraft – – – 32. Creditors 83 – 83

33. Borrowings 459 6,844 7,303

34. Provisions a. Tax equivalents – – – b. Dividend – – – c. Other 264 – 264 35. Total liabilities 806 6,844 7,650

36. NET ASSETS COMMITTED 5,483 47,802 53,285 EQUITY 37. Accumulated surplus 17,134 38 Asset revaluation reserve 36,151 39. TOTAL EQUITY 53,285

Note to system assets: 40. Current replacement cost of system assets 129,176 41. Accumulated current cost depreciation of system assets (76,461) 42. Written down current cost of system assets 52,715

page 8 Special Schedules 2016

Cowra Shire Council

Special Schedule 5 – Sewerage Service Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

A Expenses and income Expenses

1. Management expenses a. Administration 380 296 b. Engineering and supervision 429 346

2. Operation and maintenance expenses – mains a. Operation expenses – – b. Maintenance expenses 202 233

– Pumping stations c. Operation expenses (excluding energy costs) 43 67 d. Energy costs 20 25 e. Maintenance expenses 51 62

– Treatment f. Operation expenses (excl. chemical, energy, effluent and biosolids management costs) 105 120 g. Chemical costs 111 94 h. Energy costs 101 111 i. Effluent management – – j. Biosolids management 58 – k. Maintenance expenses 93 69

– Other l. Operation expenses 154 150 m. Maintenance expenses 6 2

3. Depreciation expenses a. System assets 560 540 b. Plant and equipment 20 15

4. Miscellaneous expenses a. Interest expenses 563 572 b. Revaluation decrements – – c. Other expenses 71 83 d. Impairment – system assets – – e. Impairment – plant and equipment – – f. Aboriginal Communities Water and Sewerage Program – – g. Tax equivalents dividends (actually paid) – –

5. Total expenses 2,967 2,785

page 9 Special Schedules 2016

Cowra Shire Council

Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

Income

6. Residential charges (including rates) 2,386 2,307

7. Non-residential charges a. Access (including rates) 623 588 b. Usage charges 65 65

8. Trade waste charges a. Annual fees – – b. Usage charges – – c. Excess mass charges – – d. Re-inspection fees – –

9. Extra charges 13 16

10. Interest income 17 11

11. Other income 214 208 11a. Aboriginal Communities Water and Sewerage Program – –

12. Grants a. Grants for acquisition of assets – – b. Grants for pensioner rebates 45 45 c. Other grants – –

13. Contributions a. Developer charges 64 – b. Developer provided assets – – c. Other contributions – –

14. Total income 3,427 3,240

15. Gain (or loss) on disposal of assets – 1

16. Operating result 460 456

16a. Operating result (less grants for acquisition of assets) 460 456

page 10 Special Schedules 2016

Cowra Shire Council

Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

Actuals Actuals $’000 2016 2015

B Capital transactions Non-operating expenditures

17. Acquisition of fixed assets a. New assets for improved standards – – b. New assets for growth – – c. Renewals 318 779 d. Plant and equipment 4 29

18. Repayment of debt 124 125

19. Totals 446 933

Non-operating funds employed

20. Proceeds from disposal of assets – 1

21. Borrowing utilised – –

22. Totals – 1

C Rates and charges

23. Number of assessments a. Residential (occupied) 3,207 3,195 b. Residential (unoccupied, ie. vacant lot) 221 225 c. Non-residential (occupied) 319 313 d. Non-residential (unoccupied, ie. vacant lot) – –

24. Number of ETs for which developer charges were received 12 ET – ET

25. Total amount of pensioner rebates (actual dollars) $ 80,439 $ 80,968

page 11 Special Schedules 2016

Cowra Shire Council

Special Schedule 6 – Sewerage Service Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2016

Actuals Actuals Actuals $’000 Current Non-current Total

ASSETS 26. Cash and investments a. Developer charges 658 – 658 b. Special purpose grants – – – c. Accrued leave 116 – 116 d. Unexpended loans – – – e. Sinking fund – – – f. Other 5,675 – 5,675

27. Receivables a. Specific purpose grants 1 – 1 b. Rates and availability charges 280 – 280 c. User charges 55 – 55 d. Other 24 – 24

28. Inventories – – –

29. Property, plant and equipment a. System assets – 33,343 33,343 b. Plant and equipment – 1,786 1,786

30. Other assets – – – 31. Total assets 6,809 35,129 41,938

LIABILITIES 32. Bank overdraft – – – 33. Creditors 53 – 53

34. Borrowings 99 6,718 6,817

35. Provisions a. Tax equivalents – – – b. Dividend – – – c. Other 93 – 93 36. Total liabilities 245 6,718 6,963

37. NET ASSETS COMMITTED 6,564 28,411 34,975 EQUITY 38. Accumulated surplus 19,668 39. Asset revaluation reserve 15,307 40. TOTAL EQUITY 34,975

Note to system assets: 41. Current replacement cost of system assets 49,344 42. Accumulated current cost depreciation of system assets (16,001) 43. Written down current cost of system assets 33,343

page 12 Special Schedules 2016

Cowra Shire Council

Notes to Special Schedules 3 and 5 for the year ended 30 June 2016

Administration (1) Engineering and supervision (1) (item 1a of Special Schedules 3 and 5) comprises the following: (item 1b of Special Schedules 3 and 5) comprises the following: • Administration staff: • Engineering staff: − Salaries and allowance − Salaries and allowance − Travelling expenses − Travelling expenses − Accrual of leave entitlements − Accrual of leave entitlements − Employment overheads. − Employment overheads. • Meter reading • Other technical and supervision staff: − Salaries and allowance • Bad and doubtful debts − Travelling expenses − Accrual of leave entitlements • Other administrative/corporate support services − Employment overheads.

Operational expenses (item 2 of Special Schedules 3 and 5) comprise the day to day operational expenses excluding maintenance expenses.

Maintenance expenses (item 2 of Special Schedules 3 and 5) comprise the day to day repair and maintenance expenses. (Refer to Section 5 of the Local Government Asset Accounting Manual regarding capitalisation principles and the distinction between capital and maintenance expenditure).

Other expenses (item 4c of Special Schedules 3 and 5) includes all expenses not recorded elsewhere.

Revaluation decrements (item 4b of Special Schedules 3 and 5) is to be used when I,PP&E decreases in FV.

Impairment losses (item 4d and 4e of Special Schedules 3 and 5) are to be used when the carrying amount of an asset exceeds its recoverable amount (refer to page D-31).

Aboriginal Communities Water and Sewerage Program (item 4f of Special Schedules 3 and 5) is to be used when operation and maintenance work has been undertaken on behalf of the Aboriginal Communities Water and Sewerage Program. Similarly, income for item 11a of Special Schedule 3 and item 12a of Special Schedule 5 are for services provided to the Aboriginal Communities Water and Sewerage Program and is not part of Council’s water supply and sewerage revenue.

(2) Residential charges (items 6a, 6b and item 6 of Special Schedules 3 and 5 respectively) include all income from residential charges. Item 6 of Schedule 3 should be separated into 6a access charges (including rates if applicable) and 6b usage charges.

(2) Non-residential charges (items 7a, 7b of Special Schedules 3 and 5) include all income from non-residential charges separated into 7a access charges (including rates if applicable) and 7b usage charges.

Trade waste charges (item 8 of Special Schedule 5) include all income from trade waste charges separated into 8a annual fees, 8b usage charges and 8c excess mass charges and 8d re-inspection fees.

Other income (items 10 and 11 of Special Schedules 3 and 5 respectively) include all income not recorded elsewhere.

Other contributions (items 12c and 13c of Special Schedules 3 and 5 respectively) including capital contributions for water supply or sewerage services received by Council under Section 565 of the Local Government Act .

Notes: (1) Administration and engineering costs for the development of capital works projects should be reported as part of the capital cost of the project and not as part of the recurrent expenditure (ie. in item 16 for water supply and item 17 for sewerage, and not in items 1a and 1b).

(2) To enable accurate reporting of residential revenue from usage charges, it is essential for councils to accurately separate their residential (item 6) charges and non-residential (item 7) charges.

page 13 Special Schedules 2016 Cowra Shire Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2016 as at 30 June 2016

$’000 Estimated cost Estimated cost Assets in condition as a percentage of gross to bring assets to bring to the 2015/16 2015/16 Gross replacement cost to satisfactory agreed level of Required Actual Carrying replacement a Asset class Asset category standard service set by maintenance maintenance value cost (GRC) 1 2 3 4 5 Council

Buildings Council Offices/ Administration Centres – 145 112 4,065 5,719 0% 100% 0% 0% 0% Council Works Depot – 98 84 715 1,281 0% 50% 50% 0% 0% Public Halls – 101 113 3,762 5,025 0% 95% 2% 0% 3% Libraries – 96 86 2,025 3,037 0% 100% 0% 0% 0% Houses – 34 12 551 1,877 0% 0% 100% 0% 0% RFS Sheds – 6 – 672 1,070 0% 50% 50% 0% 0% Amenities/Toilets 36 171 150 2,702 4,700 12% 52% 28% 8% 0% Other 114 168 135 6,251 11,439 21% 36% 35% 5% 3% Sub-total 150 – 819 692 20,743 34,148 8.7% 62.4% 24.9% 2.6% 1.3% Roads Sealed roads structure – 265 324 48,448 51,328 26% 67% 7% 0% 0% Sealed roads surface 74 699 711 20,079 24,209 26% 60% 14% 0% 0% Unsealed roads 437 886 828 13,159 15,844 46% 32% 19% 3% 0% Bulk earthworks – – – 257,884 257,884 100% 0% 0% 0% 0% Bridges 138 9 4 23,703 25,936 45% 48% 2% 5% 0% Footpaths – 45 33 7,475 8,314 26% 64% 9% 0% 0% Cycleways – – – 763 780 100% 0% 0% 0% 0% Kerb & Gutter 136 43 54 17,355 18,815 16% 81% 3% 1% 0% Other road assets – 348 270 1,790 2,735 0% 50% 50% 0% 0% Culverts & pipes 269 70 74 12,220 14,637 5% 85% 9% 2% 0% Road Furniture – 52 43 67 180 0% 0% 100% 0% 0% Sub-total 1,054 – 2,417 2,341 402,943 420,662 72.0% 24.0% 3.5% 0.5% 0.0%

page 14 Special Schedules 2016 Cowra Shire Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2016 (continued) as at 30 June 2016

$’000 Estimated cost Estimated cost Assets in condition as a percentage of gross to bring assets to bring to the 2015/16 2015/16 Gross replacement cost to satisfactory agreed level of Required Actual Carrying replacement a Asset class Asset category standard service set by maintenance maintenance value cost (GRC) 1 2 3 4 5 Council

Water supply Mains 2,220 650 642 38,720 83,486 19% 8% 46% 27% 0% network Reservoirs 470 64 77 6,335 17,475 0% 0% 73% 27% 0% Pumping Stations 297 435 473 1,771 5,262 5% 10% 79% 6% 0% Treatment Plant – 1,102 1,090 5,285 22,283 0% 100% 0% 0% 0% Meters 67 167 175 604 670 0% 25% 65% 10% 0% Sub-total 3,054 – 2,418 2,457 52,715 129,176 12.8% 23.1% 43.0% 21.1% 0.0% Sewerage Mains 420 342 260 18,518 31,562 8% 10% 69% 12% 0% network Pumping Stations 209 135 114 1,156 2,497 13% 9% 70% 8% 0% Treatment Plant – 522 502 13,669 15,285 0% 100% 0% 0% 0% Sub-total 629 – 999 876 33,343 49,344 5.5% 38.1% 48.0% 8.4% 0.1% Stormwater Conduits 290 118 18 20,369 23,503 40% 48% 11% 0% 0% drainage Inlet & Junction Pits 94 42 6 7,208 8,439 57% 32% 11% 0% 0% Sub-total 384 – 160 24 27,577 31,942 44.4% 43.9% 11.1% 0.3% 0.3% Open space/ Swimming pools 116 284 219 1,187 2,319 0% 0% 100% 0% 0% recreational Other Recreational Assets 81 1,126 1,205 2,392 4,533 19% 64% 13% 2% 1% assets Sub-total 197 – 1,410 1,424 3,579 6,852 12.6% 42.5% 42.5% 1.5% 0.8% TOTAL – ALL ASSETS 5,468 – 8,223 7,814 540,900 672,124 50.6% 28.0% 16.2% 5.2% 0.1%

Notes: a Required maintenance is the amount identified in Council’s asset management plans.

Infrastructure asset condition assessment ‘key’

1 Excellent No work required (normal maintenance) 6 Conditio 4 Poor Renewal required 2 Good Only minor maintenance work required 7 Conditio 5 Very poor Urgent renewal/upgrading required 3 Average Maintenance work required 8 Condition Description here… page 15 Special Schedules 2016

Cowra Shire Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2016

Amounts Indicator Prior periods $ ’000 2016 2016 2015 2014

Infrastructure asset performance indicators * consolidated

1. Infrastructure renewals ratio Asset renewals (1) 4,219 89.29% 94.72% 72.84% Depreciation, amortisation and impairment 4,725

2. Infrastructure backlog ratio Estimated cost to bring assets to a satisfactory standard 5,468 1.93% 1.99% 4.38% Carrying value of infrastructure assets 283,016

3. Asset maintenance ratio Actual asset maintenance 7,814 0.95 1.34 0.78 Required asset maintenance 8,223

Notes * All asset performance indicators are calculated using the asset classes identified in the previous table.

(1) Asset renewals represent the replacement and/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.

page 16 Special Schedules 2016

Cowra Shire Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2016

1. Infrastructure renewals ratio Purpose of asset 120% renewals ratio 2015/16 Ratio 89.29% 100%

80% To assess the rate at 60% which these assets

Ratio % 95% are being renewed 40% 89% 73% relative to the rate at 20% 48% which they are 0% depreciating. 2013 2014 2015 2016

Benchmark: ――― Minimum >=100.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

2. Infrastructure backlog ratio Purpose of infrastructure 6.0% 2015/16 Ratio 1.93% backlog ratio 5.0%

4.0% This ratio shows 3.0% what proportion the

Ratio % 4.6% backlog is against 2.0% 4.4% the total value 1.0% 2.0% 1.9% of a Council’s 0.0% infrastructure. 2013 2014 2015 2016

Benchmark: ――― Maximum <2.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

3. Asset maintenance ratio Purpose of asset 1.60 maintenance ratio 2015/16 Ratio 0.95 x 1.40 Compares actual vs.

1.20 required annual 1.00 asset maintenance. 0.80 1.34 A ratio above 1.0

Ratio (x) 0.60 0.95 indicates Council is 0.40 0.76 0.78 investing enough 0.20 funds to stop the 0.00 infrastructure 2013 2014 2015 2016 backlog growing. Benchmark: ――― Minimum >1.00 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

page 17 Special Schedules 2016

Cowra Shire Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2016

Water Sewer General (1) $ ’000 2016 2016 2016

Infrastructure asset performance indicators by fund

1. Infrastructure renewals ratio Asset renewals (2) 22.63% 56.79% 142.69% Depreciation, amortisation and impairment prior period: 30.92% 141.62% 129.69%

2. Infrastructure backlog ratio Estimated cost to bring assets to a satisfactory standard 5.79% 1.89% 0.91% Carrying value of infrastructure assets prior period: 5.62% 1.25% 1.14%

3. Asset maintenance ratio Actual asset maintenance 1.02 0.88 0.93 Required asset maintenance prior period: 1.06 2.25 1.32

Notes (1) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

(2) Asset renewals represent the replacement and/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.

page 18 Special Schedules 2016

Cowra Shire Council

Special Schedule 8 – Permissible Income Calculation for the year ended 30 June 2017

Calculation Calculation $’000 2015/16 2016/17

Notional general income calculation (1)

Last year notional general income yield a 6,179 6,344 (2) Plus or minus adjustments b 79 (38) Notional general income c = (a + b) 6,258 6,306

Permissible income calculation (3) Special variation percentage d Or rate peg percentage e 2.40% 1.80% Or crown land adjustment (incl. rate peg percentage) f

Less expiring special variation amount g – – Plus special variation amount h = d x (c – g) – – Or plus rate peg amount i = c x e 150 114 Or plus Crown land adjustment and rate peg amount j = c x f – – Sub-total k = (c + g + h + i + j) 6,408 6,420

Plus (or minus) last year’s carry forward total l – 64 Less valuation objections claimed in the previous year m – – Sub-total n = (l + m) – 64

Total permissible income o = k + n 6,408 6,484

Less notional general income yield p 6,344 6,496 Catch-up or (excess) result q = o – p 64 (12)

(4) Plus income lost due to valuation objections claimed r – – (5) Less unused catch-up s – – Carry forward to next year t = q + r – s 64 (12)

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 Council’s Special Schedule 8 in the financial data return (FDR) to administer this process.

page 19 INDEPENDENT AUDITOR’S REPORT PERMISSIBLE GENERAL INCOME OF COWRA SHIRE COUNCIL

Scope

We have audited the special purpose financial report comprising the reconciliation of total permissible general income of Cowra Shire Council for 2017-’18.

The Council is responsible for the preparation and presentation of the report in accordance with a directive of the Chief Executive, Local Government, Department of Premier and Cabinet. We have conducted an independent audit of the report in order to express an opinion on its preparation and presentation.

The report has been prepared for the Office of Local Government in the Department of Premier and Cabinet for the purpose of ensuring compliance by the Council with its financial reporting requirements under the Local Government Act 1993.

Our audit has been conducted in accordance with Australian Auditing Standards so as to provide reasonable assurance as to whether the report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the report. We have not examined forecasts of expenditure or the impact of present or future policy decisions on the report. These procedures have been undertaken to form an opinion as to whether, in all material respects, the report is presented fairly in accordance with the requirements of the Chief Executive, Local Government.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the reconciliation of Council’s total permissible general income which shows a carry forward excess for 2017-’18 of twelve thousand one hundred and fifty-nine dollars $-12,159 is properly drawn up in accordance with the requirements of the Chief Executive, Local Government and in accordance with the books and records of the Council.

Basis of Accounting and Restriction on Distribution

Without modifying our opinion, we draw attention to the fact that the reconciliation of total permissible general income is a special purpose financial report which has been prepared for distribution to the Council and the Office of Local Government for the purpose of fulfilling the requirements of the directive of the Chief Executive, Local Government, Department of Premier and Cabinet. As a result, the financial report may not be suitable for another purpose. We disclaim any assumption of responsibility for any reliance on this report or on the financial statements to which it relates to any person other than the Council or the Office of Local Government or for any purpose other than for which the financial report was prepared.

i 14 Sale Street Orange Dated: 25 October 2016

Liability limited by a scheme approved under Professional Standards Legislation page 20