annual 2017/18 report - wakool shire · 2018-12-04 · manager, engineering, planning &...

MURRAY RIVER COUNCIL ANNUAL REPORT 1

ANNUALR E P O RT 20

17/18


Local Government Act 1993Murray River Council’s annual reporting requirements are set out in the Local Government Act 1993 (the Act) (section 428) and the Local Government (General) Regulation 2005 (the Regulation) (clause 217).

This Report has been prepared in line with these requirements, fulfilling Council’s obligations under the Act. This Report, in total, covers the period from 1 July 2017 to 30 June 2018.

Document photos credits:Jan Thomas - The Backroads Trail - cluBarham - Murray River Council


ContentsForeward........................................................4-5

Murray River Council snapshot........................6

Our Councillors................................................7

Murray River Council vision..............................8

Organisational overview..................................9

Our Achievements.....................................10-14

Delivery ReportLeadership and Governance.......................15-22

Sustainable Built Physical Environment......23-28

Natural Environment..................................29-35

Social Wellbeing.........................................36-47

Economic Growth.......................................48-56

Statutory Report.........................................57-71

AttachmentsFinancial Statements (unaudited).....................72


Forewardfrom

THE MAYOR AND GENERAL MANAGER

The 2017/18 year has continued to see significant achievements being made to enhance theprosperity of our Council, and the Annual Report provides an opportunity to reflect on the

successes and challenges of the past 12 months.

Once again we maintained our working capital at a strong level this financial year and have continued to build up our internal reserves to help fund Council’s ongoing program.

It has been very rewarding to work towards the growth and progress of our Council through the development of our Community Strategic Plan along with our Combined Delivery Program and Operational Plan, which details our yearly and long term goals and objectives. All these plans were updated following the Local Government elections in September 2017 and formally adopted in June this year. This was a resource-intensive task that was achieved following a considerable effort from staff across the organisation with input and feedback from our community.

Harmonising the many systems within Council that were different in the legacy organisations continued this year. Financial reporting, IT, Human Resources, records management and a host of others are still undergoing some tweaking, but once completed, they will streamline our procedures for the benefit of our staff and our residents.

We have also been spending substantial sums on recreation, sporting and park facilities across the Council area, and will continue to do so into the 2018/19 year. Funding from the merger process, along with funding under the NSW Government’s Stronger Country Communities program has allowed us to upgrade and, in some cases, build new facilities. Some of these projects have been completed, some are underway, and others are planned but not yet started. All will improve the liveability of our area and have been driven by local input about the needs of our communities.

Another key project that commenced is the review and harmonisation of our Local Environment Plans (LEP) to better reflect the needs of our communities, particularly the rural communities in the north west of the Council. Extensive work is still to be done to develop a comprehensive Development Control Plan (DCP) but once complete, both these instruments will provide an excellent framework to support development in Murray River Council in the coming years.

Council’s asset management processes and procedures were also reviewed through the development of our Asset Management Strategy. Roads and ancillary infrastructure, such as bridges and footpaths, account for almost 60% of the total value of Council owned assets, so this document will help guide the evaluation of the costs associated with maintaining them into the future and help inform our maintenance and renewal programs overall.


Foreward

2017/18 also saw the start of Council’s involvement in some very big conversations about water; joining the Speak Up movement and advocating to various levels of Government about the plights of farmers in NSW. This area is very dependent on agriculture in all its forms for driving our economy, and when water isn’t available, it’s not just the farmers who suffer. The kick-on effects are felt throughout the region, from businesses directly supporting agriculture right through to the everyday businesses in our communities.

That is why Council has also been looking to undertake new projects with an eye to the sustainability and resilience of our communities. Attracting new and innovative industries is a focus to ensure we are less exposed to boom and bust cycles, especially as it relates to water and its availability. Supporting businesses that add value to what we produce, therefore generating more dollars from each megalitre of water, is essential for our future so our Economic Development team have been working hard to keep this in focus.

As we wrap up the year, we’d like to acknowledge the commitment of all employees who have embraced new practices and change and strived for the delivery of quality service. It is vital that we continue to develop our reputation as a friendly and approachable team, working together with the community and our customers as our focus.

Finally, thank you to everyone who has contributed to the development of our plans and projects this year; it has been very encouraging to see the community take up opportunities to share their ideas, thoughts and aspirations. We have enjoyed meeting and chatting to you all at our ‘meet the council’ sessions, which gave us an opportunity to step into your communities and better understand the needs of residents right across the council area.

We encourage you to learn more about our achievements via this Annual Report and we are pleased with how Council, Government Agencies and the community continue to pursue new ways of working together.

Cr Chris Bilkey Des BilskeMAYOR GENERAL MANAGER


Murray River Council a snapshot

Murray River Council governs an area of 11,865 square kilometres, is home to approximately 11,956 residents and is located in the southern Riverina - 800km south of Sydney and 205km north of Melbourne.

The main population centres include Barham, Mathoura, Moama, Moulamein, Murray Downs, Tooleybuc and Wakool. Other communities include Bunnaloo, Goodnight, Koraleigh and Womboota. The area has a wealth of physical features including majestic sweeping plains; magnificent stands of Red Gum forests and is almost totally surrounded by the mighty Murray River and its tributaries.

Murray River’s natural assets continue to attract locals and visitors alike, forming the backdrop to many recreational activities. With tourism, industry and an idyllic rural lifestyle, Murray River continues to grow and prosper.

Tooleybuc

Moulamein

Swan Hill

Wakool

Barham

Moama

MathouraBunnallo

Womboota

Koraleigh

Murray Downs

Echuca

Balranald

Deniliquin

Land area:11,865 sq km’sPopulation:11,956 Annual operating budget:$44.043m Total staff: 190Farmland properties: 1975Residential properties: 4884Rateable businesses: 1013Rates and charges revenue:$15.522mAsset base carrying value: $662.037m Local Employment: 4,466 (ABS 2016)


Our CouncillorsMurray River Council sits in the Federal Electorate of Farrer and the State Electorate of Murray. Local government elections are conducted every 4 years in September when we elect the Councillors we wish to represent us.

Three Councillors are elected from each of the three wards that make up the municipality:

• Greater Moama Ward - taking in the township of Moama• Greater Murray Ward - taking in the area of the former Murray Shire, minus Moama• Greater Wakool Ward - taking in the area of the former Wakool Shire.

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Murray River Council has vibrant, diverse and cohesive communities. We are supported by strong local business and primary industries. We value our beautiful waterways and natural surrounds.

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Our organisationMurray River Council has four key business areas, including the Office of the General Manager, Engineering, Planning & Environment and Corporate Services. Each Directorate is led by a Director who reports to the General Manager.

We currently have over 1xx staff in offices and depots at four key locations: Barham - Moama - Mathoura - Moulamein

Office of the General Manager Des BilskeOrganisation Leadership Corporate Governance Councillor Support Public Relations & CommunicationsCommunity ServicesEconomic Development Community Development TourismArts & Culture

Corporate ServicesRoss Mallett (appointed July 2018)

Corporate Revenue Management Corporate LeadershipIntegrated Planning & ReportingRecords ManagementFinancial AccountingFinancial Planning, Monitoring & Reporting Rates & ValuationsHuman Resource Management Volunteer ManagementBusiness AgencyCustomer SupportLibrary ServicesVisitor InformationBuilding Operations (Cleaning)Land & Property Management Procurement & Contract Management Stores ManagementRisk ManagementWork Health & SafetyInformation, Communication & Technology

Planning and EnvironmentSimon ArkinstallDevelopment Certification & Compliance Public HealthAnimal Management, Compliance & EnforcementHeritage ManagementStatutory PlanningStrategic Land Use Planning (Urban & Rural) Landfill ManagementWaste Collection & RecyclingEnvironmental ManagementBiodiversityNative Title

EngineeringScott Barber (appointed Nov 2018)

Ancilliary Transport InfrastructureBridge MaintenanceDepot OperationsFlood Management OperationsMechanical WorkshopsPedestrian & Shared Pathways Maintenance Plant, Vehicle & Equipment Acquisition, Replacement & DisposalPrivate Works - MaintenancePublic LightingQuarry OperationsRoad Safety ManagementRural Road Reserve Land Maintenance Sealed Road MaintenanceSoil Testing & Geotechnical Investigations Stormwater DrainageStreet CleaningSurvey & DesignTraffic Management & Streetscapes Unsealed Road MaintenanceWastewater OperationsWater Supply OperationsCamping Areas & Caravan Parks Management Cemetery ManagementNatural Area MaintenanceParks, Gardens & Reserves Management Playground ManagementPublic AmenitiesSport & Recreation Facilities Operations Sports Ground MaintenanceSwimming PoolsTree ManagementUrban Road Reserve Land Maintenance Asset ManagementBuilding MaintenanceGIS & MappingRural AddressingFlood Management PlanningSpecial Projects - BridgesEmergency ManagementRural Fire Service


Our achievements


Our achievementsMurray River Council adopted an Operational Plan for the period 1 July 2017 to 30 June 2018, outlining its five key objectives:

• Strengthen Leadership and Governance – which is effective, democratic, open, transparent and meets the changing needs of our diverse community

• Promote a Sustainable Built Physical Environment – which is planned, connected, safe and supports our industries, business and community.

• Promote a Natural Environment – which is sustainable, managed, healthy and valued by our community.

• Enhance Social wellbeing – which is active, healthy, diverse and celebrates our rich cultural heritage and rural lifestyle

• Stimulate Economic Growth – which is vibrant, strong and supportive of our local townships and regional industries

This section documents our achivements and progress over the past twelve months in relation to these areas.

Strengthen leadership and governanceWe expect effective, democratic, open, transparent leadership and governance that plans for, advocates for, and meets the changing needs of our diverse community. Strong civic leadership and governance is the key to ensuring that Murray River Council is efficient, responsive and financially sustainable in the long term. Council’s operations in this area are managed by the Office of the General Manager and the Division of Corporate Services. Some of the key achievements in strengthening Council’s leadership and governance during 2017-18 included:

» A new Council was elected in September 2017 comprising 9 councillors including the Mayor

» Council appointed a new General Manager in September 2017

» A number of new members of the senior management team were appointed to the Council during 2017-18

» Council contributed significantly to the dissolution of the Central Murray County Council and the subsequent move towards in-house management of all weed and pest mitigation activities within the council area

» Council actively participated in the planning and establishment of the Riverina and Murray Joint Organisation (RAMJO)

RIVERINA AND MURRAY JOINT ORGANISATION MEMBER COUNCILS

» Council prepared and adopted a number of important components of the Integrated Planning and Reporting Framework during the year including:

-A new Community Strategic Plan 2018-2028 -Community Engagement Strategy -Delivery Program 2018-2021 -2018-19 Operational Plan and Budget -Resourcing Strategy including Long-term

Financial Plan and Workforce Management Strategy.


Our achievementsPromote a Sustainable Built/Physical EnvironmentWe want our built and physical environment to be well planned, connected, safe and designed to support our communities,industries and businesses.Council operations addressing this objective are overseen by the Directorates of Engineering and Planning and Environmental Services.

Engineering Services is responsible for the management and maintenance of public assets and infrastructure including local roads and bridges, sports fields and community buildings, kerb and guttering and footpaths. Similarly, Planning and Environmental Services is responsible for all operations addressing land use and development and protection and enhancement of the natural environment.

The following is a list of some of the key achievements of these two directorates in their work to promote a sustainable built and physical environment during 2017-18: » Sealed Road constructed – 9.0km » Kerb & Gutter constructed – 698m » Bike Paths constructed – 432m

» Repaint Reservoir in Barham » Pressurisation of reticulation network from

Moama Water Treatment Plant » Council undertook a number of planning

proposals to the existing LEPs to encourage and promote development across the council area

» Commenced review of the former Wakool and Murray Shire Councils planning policies with the aim of consolidating these into one document covering the whole council area

» A draft Rural Residential Strategy was completed for the community of Moama

» Moulamein Rec Reserve – resurfaced netball courts, upgraded netball lighting, installed new netball shelter, renovated sports field and installed drainage, new ground perimeter fencing, AFL goals and nets.

432M OF BIKE PATH HAS BEEN CONSTRUCTED

MOULAMEIN RECREATION RESERVE UPGRADES

38 Draft Murray River local profile

3.7.2 Land use

Almost half of Murray River LGA is used for cropping, with dryland cropping covering 26% of the LGA and irrigated cropping covering 18%. Grazing on native pastures/vegetation covers about 28% of the LGA and grazing modified pastures covers about 10%. This largely occurs on the more marginal dryland areas along with undeveloped sections of the floodplain.

Nature conservation is another significant land use/cover, covering around 11% of the LGA, mainly on floodplains with residual forest cover, with largest of these comprising Murray Valley National and Regional Park east of Mathoura and west of Moama, and Yanga National Park/State Conservation Area, in the north-western corner of the LGA. Native hardwood forestry is a major land use in the floodplain forests around Bahram (3% of LGA).

Figure 3.4: Land use in Murray River LGA

commenced the consolidation of planning policies


Promote a Natural EnvironmentWe value our natural environment and expect it to be accessible, sustainable, managed, and healthy.This objective is also principally addressed by the Directorates of Engineering and Planning and Environmental Services. Operations conducted by these divisions are increasingly important in ensuring that our natural environment is protected and enhanced through works such as flood planning and mitigation, managing waste and recycling, ensuring high quality water supply, reducing the proliferation of a wide variety of weeds and pests and preserving areas of local bushland. Some of the main achievements of these two directorates in promoting a natural environment during 2017-18 included: » Commenced Flood Studies in Moulamein and

Moama areas » Commenced Flood Restoration Works on

Aratula Rd, Picnic Point Rd, Wakool Rd, Moulamein Rd and Balpool Rd

» A community recycling centre was established within the Moama waste facility

» A waste transfer station was established within the Cummeragunja Community in consultation with community members

» A draft Waste Management Strategy was developed for Murray River Council area.

Enhance Social Wellbeing We want to have services and facilities that support an active, healthy and diverse rural lifestyle, and help us celebrate and enjoy our rich cultural heritage and connected communities.Addressing the social wellbeing of communities across the Council area is the responsibility of our Community Services Department. This department provides community and outreach services for children and youth, families, the elderly, people with disability and many others. Community services are vital in ensuring that our communities are cared for and receive the support services they require. This department also has a vital role in liaising with State, Federal and non-government service providers and advocating for local communities to ensure the ongoing funding and provision of social and community services within the Council area. Some of the major achievements of this department during 2017-18 included: » Tabled Social Health and Wellbeing Profile

and Plan including recommendations to Council April 2018

» Improvement and expansion of MRC Community Services – Home Support Program including expansion to regularly service townships of Murray Downs and Wakool

» Establishment of Client Advocacy Meetings, individual meetings in Moama and Wakool Ward area, to actively engage with consumers, carers and community advocates, seeking feedback to improve service delivery

» Establishment and start-up of Murray River Council – Youth Engagement Program, transitioned from external subcontracted service delivery to internal services delivered by the Community Services Department

» Supported health initiatives, including networking and support to Murrumbidgee Local Health District, transition to central intake service

» Work with allied community groups to identify, pursue, promote and foster community inclusion – events and activities.

FLOOD RESTORATION WORKS ON ARATULA ROAD

Our achievements


Stimulate Economic GrowthWe need economic growth so that we are vibrant, strong and able to support our local townships, regional industries and future employment. The Murray River Council area has continued to experience economic growth in areas of agriculture, tourism, land development and a range of other industries. Council plays an important role in the economic development of the region with the aim of providing a secure business and employment environment for our communities. Some of the Council’s main achievements in economic development in 2017-18 included:» Engaged and collaborated with Echuca

Moama Tourism, Murray Regional Tourism,Campaspe Shire, Moulamein CommunityDevelopment Inc, Barham Consolidated andTooleybuc Piangal Action Group to developand implement Tourism and EconomicDevelopment Strategies

» Visitor numbers to the region increased by13.7% at Echuca Moama and 4.9% across therest of the Murray River Council Area during2017/18

» Commenced community engagement todevelop Economic Development and TourismStrategic Plan

» Commenced development of a new MurrayRiver visitor guide and associated print anddigital collateral

» Commenced discussions with APA Group inrelation to increasing capacity and extendingthe service area of the natural gas network inMoama

» Signed agreement to bring the NSW SeniorMen’s, Ladies and Foursomes Open GolfChampionships to Rich River Golf ClubMoama and Murray Downs Golf Resort inMurray Downs during 2019

» Presented numerous business networkingopportunities through engagement withCommittee for Echuca Moama, MoulameinCommunity Development Inc, TooleybucPiangal Action Group, Murray BusinessNetwork, Murray Regional Tourism andBarham community including a businessdinner during NSW Small Business Monthwhich showcased local businesses

» Signed an MOU with developers to developfive major projects in the Murray River Councilarea. The first project is the development of a350Mw solar energy farm north of Moulamein

» Negotiating a number of commerciallysensitive major projects across the area thatwill commence between 2018 and 2020.

cOLLABORATED WITH TOURISIM AGENCIES, INLCUDING ECHUCA MOAMA TOURISM

SIGNED AGREEMENT TO BRING GOLF CHAMPIONSHIPS TO THE REGION

HOSTED BUSINESS NETWORKING OPPORTUNITIES

Our achievements


Delivery Program Progress ReportLeadership & Governance


Progress Report

A. LEADERSHIP AND GOVERNANCE

Strategy: A. Community Partnership

Principal Activity: A1. Create organisation morale which will produce high productivity and a high degree of professionalism to boost internal and external confidence, developing trust in council operations.

Action Result

Reduce complaints and increase compliments.

Council has established a Customer Service Centre with offices in majorcouncil towns and has employed a Customer Service Manager to improve standards, timeliness and consistency in delivery of services to our customers.

Respond promptly/within agreed timeframes to requests from members of the public.

Works commenced to establish a Customer Request Management (CRM)System to better manage customer requests, feedback and complaints.

Council adopted a Customer Service Charter and associated performancetargets

Improve satisfaction in contact with Council.

In the Local Government Customer Satisfaction Survey conducted by theNSW Government in 2016, Council achieved a customer serviceperformance score of 73, compared with an average for rural councils of 70and a statewide average of 69.

Continued improvements in customer satisfaction will be monitored and willbe driven by initiatives including the Customer Service Centre and Charterand the CRM system.

Ensure a pro-active customer focus across all areas of Council.

Work commenced to develop a Customer Service Charter and associatedperformance indicators.

Ensure appropriate Council representation at community committee and Section 355 Committee meetings and other forums.

Councillors, the General Manager and senior staff have maintained effectiveengagement with s355 committees and community groups as appropriate.

Councillors, the General Manager and senior staff continue to attendmeetings and work with organisations including Echuca Moama Tourism,Central Murray County Council and Murray Darling Association.

Council has been represented at public celebrations including Australia Day,ANZAC Day and many other events across the Council area.

Support development of local volunteers.

Community Services volunteers currently at 100 across the Murray RiverCouncil area; Volunteers participated in training, development and ThankYou events

Mathoura Visitor and Business Centre (MVBC): volunteers remain static Section 355 Committees of Council and volunteer committees/organisations

currently under review in accordance with NSW LGA requirements –community Consultation completed, review ongoing

Council participates in the Regional Volunteer Co-ordinators Network andstaged a volunteer wellness day in May 2018 as part of NSW VolunteersWeek.


Progress Report

Improve public perceptions of Council and its operations.

Community engagement has been significant during this period and hasincluded Meet the Council sessions and Community Strategic Plan review.

Community consultation meetings at multiple locations across the Councilarea to obtain community feedback on a range of Council activities includingfloodplain management, economic development, and reviewing theCommunity Strategic Plan and Community Service Plan.

Positive feedback was received from the community regarding the delivery ofservices including transportation and parks and gardens works, Council’sresponse to the flood crisis, evacuation order and remediation works


Strategy: B. Sound Governance and Advocacy

Principal Activity: B1 Develop and maintain a robust governance framework that ensures ethical and professional decision making.

Action Result

Maintain, develop and operate in accordance with appropriate policies and codes of practice as prescribed by the Local Government Act 1993 and industry.

The following Council policies were reviewed and/or adopted by Council: • Code of Meeting Practice• Delegations of Authority Policy• Councillor Expenses & Facilities Policy• Withdrawal of Development & Other Applications – Refund of Fees

Policy• Procurement Policy• Media Relations Policy

Maintain customer satisfaction (evidenced by 2016 satisfaction survey)

Displays customer ratings of importance of issues, rating of council’s performance and comparative rating of rural/regional councils and all NSW councils.

Comparative satisfaction rating

Importance Rating

Council Performance

Rural/Region Performance

Statewide Performance

Being a well-run and managed council

87 53 53 55

Decisions made in interests of community

81 55 52 52

Community consultation and engagement

76 57 54 53

Informing the community

76 63 56 56

StatewidePerformance


Progress ReportA. LEADERSHIP AND GOVERNANCE)

Strategy: A. Sound Governance and Advocacy

Principal Activity: B2. Develop and maintain effective relationships with State and Federal Government at political and departmental level and advocate for positive outcomes for the Murray River Council community.

Action Result

Maintain relationships.

The General Manager and Mayor attend the Country Mayor’s meetings andwork on a diverse range of issues. The Mayor, General Manager and senior staff continue to play active roles in

all regional groups and activities including the Riverina and Murray Joint Organisation (RAMJO) The Mayor and General Manager meet regularly with individuals, community

groups and communities to discuss issues concerning operational matters ofcouncil.

Support Destination 2036 initiative for Local Government.

Council has been active in establishing the Riverina and Murray JointOrganisation (RAMJO) to provide a co-operative forum/resource and regionalrepresentation on issues including water, planning and finance and otherrelevant operational matters.

Work with the NSW State Government to achieve outcomes from the Murray Shire Council/Wakool Shire Council merger.

Murray River Council is continuing to complete the merger transition andoptimise the outcomes of the process.


Strategy: B. Sound Governance and Advocacy

Principal Activity:

B3. Ensure councillors are supported in their role as civic leaders. Provide administrative support services to Councillors. Provide accurate and timely strategic information, professional advice and support to ensure Councillors statutory and governance requirements are met. .

Action Result

Provide adequate opportunities for Councillor training and attendance at conferences.

Training and conference opportunities have been made available to allcouncillors in accordance with the requirements of the Office of LocalGovernment.

Provide facilities and resources to Councillors in accordance with Local Government industry standards and Council policies.

The Councillor Expenses and Facilities policy was adopted on 17 April, 2018.


Progress Report

Distribute business papers containing accurate, comprehensive information to elected members/Administrator and the community via Council’s website no later than the Friday prior to Council or Committee meetings.

Nil instances where Business Papers were distributed late

Nil instances where reports were deemed inadequate by Council

A. LEADERSHIP AND GOVERNANCE)

Strategy: C. Workforce Planning

Principal Activity: C1. Develop a workforce and work environment that maximises its ability to be at the forefront of the Local Government industry, including the provision of best practice customer service.

Action Result

Implement Workforce Plan, in accordance with Integrated Planning and Reporting Framework.

Council’s Workforce Management Plan was reviewed and adoptedfollowing the election of the Council in 2017.


Strategy: D. Financial Sustainability

Principal Activity: D1.Provide Council with sound financial management and advice, in accordance with the requirements of the Local Government Act 1993, relevant Codes of Practice, Regulations and Australian Accounting Standards.

Action Result

Maintain a financially sustainable position. Operating Result: surplus before capital for 2017-18 = $6.669M compared

with$22.003M for previous financial period

Maintain an affordable debt position. • Debt Servicing Ratio – 14.58X compared with 17.85X for previous

financial period (Benchmark - > 2X)


Progress Report

Provide timely financial advice to stakeholders.

Budget 2017-18 adopted prior to 30 June 2017 - achieved

Quarterly budget reviews within 60 days of quarter end - achieved

Annual Financial Statements due by 31 October 2018 - draft publishedon 30 November 2018 with extension sought and approved by NSW Office ofLocal Government

Rates Certificates to be issued before 7 November – completed on 31October

Rates Levy due by 31 August - completed

Maintain a sound cash flow position.

Rates, annual charges, interest and extra charges outstanding – 10.31%compared with 7.15% for previous financial period (Benchmark - < 10%)

Unrestricted Current Ratio – 5.92X compared with 5.09X for the previousfinancial period (Benchmark – <1.5X)

Cash and Investments – Council continues to maintain a strong financialposition

Improve the financial sector of the Council.

Audit and Risk Committee appointed to provide financial and governanceoversight

Tender for Internal Auditor initiated in July 2018 and contract let inSeptember 2018


Strategy: D. Financial Sustainability

Principal Activity: D2. Review the NCP status of Council’s Category 1 Business Activities and amend pricing policies as necessary.

Action Result

Review Rating Strategy as part of merge transition long-term planning.

Rating Strategy reviewed and adopted with Operational Plan 2017-18

Next revaluation by NSW Valuer General due in 2019



Importance Rating

Council Performance

Rural Performance


Providing value for money for rates

84 57 48 51


Progress Report

Murray River Council PO Box 21, Mathoura NSW 2710 p 1300 087 004 f 03 5884 3417 e [email protected] w www.murrayriver.nsw.gov.au


Strategy: E. Risk Management

Principal Activity: E1. Establish and maintain an effective risk management policy, framework and culture.

Action Result

Reduce the risk potential within Council’s sphere of operations including property, employees and the general public.

Number of insurance claims against Council:

13 workers compensation claims received - 10 accepted, 2 denied and 1provisional.

19 vehicle claims received (7 windscreen & 12 vehicle damage)

6 public liability claims

0 professional indemnity claims.

Ensure that Council is adequately insured against loss as a result of risk exposure.

Council uses JLT Insurance Broker, who acts for the majority of councils inNSW and purchases insurance on a group basis

Council’s insurances cover all areas of risk and exposure

Implement Risk Management Policy and Framework.

All staff have been trained in the process of reporting possible risks. Thesereports are forwarded to the Risk Manager for action

Risk Management Framework reviewed and now in place

Risk register is being transitioned from spreadsheets to integratedmanagement software (CAMMS)

Implement Work Health and Safety procedures to comply with relevant legislation.

WHS policy and procedures are in place

Improvements are continually being implemented following staffconsultation

Work continues to bring the procedures of the former Murray Shire andWakool Shire councils together as one. WHS Officer has implementedprocedures for site assessments

Safety induction manual established and rolled out

Return to work procedures are being updated

Review and implement policies and procedures to cover volunteers.

Policy and procedures in place and continually updated, in consultation withstakeholders

Update Policy incorporating volunteers has been implemented and allvolunteers are regularly updated on WHS issues


Progress Report


Strategy: F. Business Systems

Principal Activity: F1. Implement and maintain contemporary, effective and fit for purpose information and communication systems to all areas of council to assist in improving efficiencies in Council’s operations and decision making.

Action Result

Maintain adequate network speed between Council’s offices.

Network speeds in Council offices are adequate but could be faster toprovide greater work efficiency.

Network speeds will form part of the ICT review to be held in 2018-19

Information Technology (IT) system to meet user requirements.

Council transitioned to a Cloud-based managed services environment

The service will continue to be monitored and improved

Services to operate within acceptable limits.

The Managed Services Agreement has key performance parameters that are regularly monitored and reported on.

To date the server has been largely dependable within the KPIs and thesupplier agreement


Delivery Program Progress ReportSustainable built physical environment


Progress Report B. SUSTAINABLE BUILT PHYSICAL ENVIRONMENT

Strategy: A. Responsible Management of Assets

Principal Activity: A1 Develop and maintain asset management governance, skills, processes, systems and data in order to provide the level of service the community need at present and in the future, in the most cost effective and fit for purpose manner.

Action Result

Implement Murray River Council’s Asset Management Strategy and Plans within funding parameters available to Council.

Asset Management Strategy and Plans completed for all asset classes, witha continuous improvement plan in place.

B. SUSTAINABLE BUILT PHYSICAL ENVIRONMENT

Strategy: B. Responsible Environmental Planning

Principal Activity:

B1.(i) Develop and implement Strategic Plans and Planning

Instruments for the Murray River Council area to ensure development occurs in an environmentally sustainable coordinated manner, to provide an efficient and effective development assessment approval process

(ii) Ensure that all building activity within the Murray RiverCouncil area meets the requirements of the Environmental Planning and Assessment (EP&A) Act1979; the Local Government Act 1993; and the NationalConstruction Code.

Action Result

Assess and process Development Applications inaccordance with legislative requirements and agreedtimeframes.

306 Development Applications approved.

57 Complying Development Consent (CDC) approved.

23 Section 96 applications approved

Mean 84 days turnover time for Development Applications.

25 (est.) formal complaints in relation to turnover time of DevelopmentApplications.

Total value of development works - $98M

Approval conditions compliedwith. Council’s staff undertake enforcement action when breaches of approval

conditions are detected.

Undertake and record allrequired inspectionsassociated with DevelopmentApplications.

All inspections completed and recorded in Council’s records managementsystem.

B. SUSTAINABLY BUILT PHYSICAL ENVIRONMENT

Strategy: A. Responsible Management of Assets

Principal Activity:A1 Develop and maintain asset management governance,skills, processes, systems and data in order to provide thelevel of service the community need at present and in thefuture, in the most cost effective and fit for purpose manner.

Action Result

Implement Murray RiverCouncil’s Asset ManagementStrategy and Plans withinfunding parameter available to Council.

Asset Management Strategy and Plans completed for all asset classes, with a continuous improvement plan in place.

B. SUSTAINABLE BUILT PHYSICAL ENVIRONMENT

Strategy: B. Responsible Environmental Planning

Principal Activity:

B1. (i) Develop and implement Strategic Plans and Planning

Instruments for the Murray River Council area to ensure development occurs in an environmentally sustainable coordinated manner, to provide an efficient and effective development assessment approval process

(ii) Ensure that all building activity within the Murray RiverCouncil area meets the requirements of the Environmental Planning and Assessment (EP&A) Act 1979; the Local Government Act 1993; and the National Construction Code.

Action Result

Assess and process Development Applications in accordance with legislative requirements and agreed timeframes.

306 Development Applications approved.

57 Complying Development Consents (CDC) approved.

23 Section 96 applications approved

Median 49 days turnover time for Development Applications.

25 (est.) formal complaints in relation to turnover time of DevelopmentApplications.

Total value of development works - $98M

Approval conditions complied with. Council’s staff undertake enforcement action when breaches of approval

conditions are detected.

Undertake and record all required inspections associated with Development Applications.

All inspections completed and recorded in Council’s records managementsystem.


Progress Report

Complete/undertake strategic planning projects and adopted recommendations in accordance with Council’s adopted programs, including individual development proposals.

Murray LEP – Kooyong Park, Moama – gateway determination provided.

Murray LEP – amend permitted land use in the RE2 private recreation zoneat Moama Recreation Reserve.

Murray LEP – include restaurant as an additional permitted use on theMurray River.

Rezone land at Tindarra Resort and Pericoota Rd, Moama, to permittourism-related development.

Murray LEP – identify a local heritage conservation area in the old Moamaprecinct, Chanter St, Moama.

Murray LEP – rezone land from rural to residential at 24 Lane, Moama

Murray LEP – rezone land at Boundary Rd, Moama, to permit low densityresidential development.

Murray LEP – rezone land at Pericoota Rd, Moama, to permit high densitydevelopment.

Wakool LEP – reclassification of land at 11 Turora St, Moulamein fromcommunity to operational.

Completed draft Moama Rural Residential Strategy

Commenced review and consolidation of the former Murray and WakoolShire LEPs

Require all prescribed buildings, plumbing and drainage works be inspected during the course of construction or installation to ensure compliance with approval.

2,023 inspections carried out.

Undertake inspection of buildings for the issue of Section 149A Certificates in a timely manner.

All inspections undertaken within 48 hours of being booked.

Process 149(2) and 149(5) Certificates in a supportive manner. 774 X 7.11 and 7.15 Certificates issued.

In accordance with budget allocations, ensure the safety of people and buildings in a wide range of environmental health areas that include:

(i) Fire Safety(ii) Building Demolition(iii) Swimming Pool Safety

Register in place and currently following up outstanding properties

16 Swimming Pool Certificates of Compliance issued.



Importance Rating

Council Performance



Planning and building permits

71 58 59 59


Progress ReportB. SUSTAINABLE BUILT PHYSICAL ENVIRONMENT

Strategy: C. Maintenance and construction of Urban Street and Rural Network

Principal Activity:

C1 (i) Provide a road network appropriate to community needs(ii) Appropriate standards are adhered to in order to ensure the safety of

road users(iii) Maximise grant road funding for road works to be carried out in the

Murray River Council area.Action Result

Improve the overall standard of rural road facilities, to the satisfaction of road users within the Murray River Council area.

Constructed Rural Roads to Australian Roads Standards

Undertake maintenance, reconstruction and construction of rural road facilities in accordance with Asset Management principles and Maintenance Management principles.

Works completed on 1km of Barham East Road

Works completed on 2km of Bunnaloo Rd

Works completed on 2km of Perricoota Rd

Works completed on 700m of Centre Road

Works completed on 600m of Tataila Road

Undertake safety inspections of rural road facilities in accordance with Murray River Council Policy.

Inspections of roads are completed, as per schedule

Identify sources of road making material for the next 20 years.

Nil new pits approved

Ensure all gravel pits are approved.

All gravel pits are managed and approved in compliance with the NSWMines Act 2017.

Council managed 72 gravel pits during the year.

Provide a quality soil testing service for road construction.

Soil testing staff provides quality control testing for gravel sources, pavementdesign and construction works.

Compliance with the Mine Health and Safety Act. Compliance with Act achieved

Maintain at least current grant funding level for road works.

Refer Quarterly Budget Review for level of grant funding

Carry out road works programs in accordance with grant funding conditions.

Refer Quarterly Budget Review for projects completed on schedule and tobudget



Importance Rating

Council Performance



Condition of local streets 76 64 52 53 Condition of sealed roads 82 61 51 49 Condition of unsealed roads

79 51 47 47



Strategy: D. Maintenance and construction of Bridges, car parking areas andurban footpaths

Principal Activity:

D1 (i) Ensure all bridges in the Murray River Council area are maintained to

trafficable and load standards.(ii) Provide adequate public car parking areas within Murray River

Council(iii) Provide, maintain and improve an adequate footpath system within

the urban areas of Murray River Council for the movement ofpedestrians, including those with disabilities.

Action Result

Undertake maintenance and construction of bridges within the Murray River Council area, in accordance with Bridge Asset Management principles.

Construction underway on the Nimmie-Caira Bridge Projects- Pee VeeCreek, Deadmans Creek and Waugora Creek

Pre-construction activities completed on the following Bridges: FountainsRoad-Merran Creek Bridge, Colenso Park Road – Merran Creek Bridge,Moulamein-Swan Hill Road – Merran Creek Bridge Repairs

Condition Development Applications to provide adequate car parking for the development.

Compliance with Development Application approvals is ongoing

Maintain public Murray River Council controlled car parking areas to a satisfactory standard.

There are 108 sealed/marked off-street public car parks in Moama

Prepare a long-term Footpath Construction Program for urban areas within the Murray River Council area.

Footpath Construction Program prepared

Construct footpaths in accordance with Footpath Construction Program.

267m of shared cycleway/footpath constructed along Perricoota road 165m of shared cycleway/footpath constructed along Cemetery Road

Undertake safety inspections of footpaths, in accordance with Murray River Council Policy.

Regular footpath inspections completed.

Respond promptly to complaints about condition of footpaths.

Nil formal complaints received during the year.

Implement the Murray River Council Pedestrian Access and Mobility Plan (PAMP).

The progress of the implementation of the PAMP is ongoing



Strategy: E. Provide Bus Shelters and Services, Bicycle Paths and RoadSafety

Principal Activity:

E1 (i) Provide facilities and routes to enable an efficient, safe and

accessible public bus system within the Murray River Councilarea.

(ii) Provide facilities and infrastructure that encourages increasedsafe cycle usage within or near the urban centres

(iii) Increase road user safety and reduce accidents, by improving thecondition of our roads as well as influencing attitudes and behaviourstowards road safety

Action Result

Attract grants for bus shelters and facilities. A carryover of $18,500 from grants received in previous years

Install bus shelters to meet the demand of the Murray River Council community. 1 bus shelter constructed to date 2017/2018

Maintain and inform Bike Path Committees’ of progress on Bike Path Plans.

165m of asphalt shared path on Cemetery Road (Moama) completed 267m of asphalt shared path on Perricoota Road (Moama) completed

Pursue Government grants for Bike Paths.

A total of $31,042 in grants received from Roads & Maritime Services forbike paths.

Implement programs, as outlined in Murray River Council’s Road Safety Strategic Plan, to increase knowledge and combat negative attitudes and behaviours towards road safety.

Programs:

Deniliquin Ute Muster Special Event – Complete

Organize and hosted a Heavy Vehicle forum in Deniliquin for transportoperators in the region – Complete

Southern 80 Special Event – Complete

Learner drivers Workshops – Complete

Senior Drivers and mobility scooter users– Complete

Review Action Plan and Road Safety Strategic Plan annually.

Action Plan reviewed.

Attract grants for Road Safety programs.

Grants received:

RMS On the Road 65 Plus Program - $1,200

RMS Cycle ways - $31,042

RMS Helping Learner Drivers Workshops - $1,277

Provide Road Safety Officer resources, in conjunction with Edward River Council, on a shared basis.

Arrangement of sharing of Road Safety Officer between Murray RiverCouncil and Edward River Council in place


Delivery Program Progress ReportNatural Environment


Progress ReportC. NATURAL ENVIRONMENT

Strategy: A. Regulatory Control - Public Safety; and Law and Order

Principal Activity:

A1.

(i) Ensure that Council’s planning operations are conducted in accordancewith legislation and statutory approvals, as well as environmental bestpractice.

(ii) Minimise inconvenience to the public and improve safety through statutoryenforcement in areas such as development control, animal control andenvironment protection.

Action Result

Comply with appropriate legislation, including Environmental Planning and Assessment (EP&A) Act 1979, Protection of the Environment Operations (POEO) Act 1997, and Local Government Act 1993.

Council complies with all relevant legislation.

Minimise number of instances of illegal or non-compliant development.

Illegal development is still occurring. Council’s staff investigate and implement necessary controls to rectify

identified illegal works.

Minimise instances of environmental harm by pollution.

All pollution incidents are investigated and assessed with required actionsimplemented to minimise environmental harm.

Maintain and enforce Council’s Development Control Plan.

All Development Applications are assessed, where required, againstCouncil’s Development Control Plans.

Action Result

Comply with Companion Animals Act 1998 by minimising and controlling the public nuisance effects and complaints with respect to companion animals.

20 formal complaints.

123 impoundments.

238 registrations.

Comply with Companion Animals Act 1998 by undertaking public engagement.

Public engagement undertaken during the period includes: Meeting with high school students to discuss companion animal

requirements and livestock keeping obligations. Meeting with members of the public that utilise off-leash areas to educate on

companion animal obligations. Distribute companion animal brochures to encourage responsible pet

ownership. Ongoing patrols to identify breaches of legislation and provide educational

resources to assist in minimising recurring non-compliances.Comply with Impounding Act 1993 by minimising and controlling the public nuisance effect of straying stock.

78 formal complaints received.


Progress Report

C. NATURAL ENVIRONMENT

Strategy: B. Emergency Management, Flood Mitigation and Noxious Weeds

Principal Activity:

B1.

(i) Develop and maintain a prompt and efficient service to meet the needs ofpersons affected, or threatened by, disaster in the Murray River Councilarea

(ii) Maintain an active and influential role in flood and river qualitymanagement within the Murray River Council area

Action Result

Implement Emergency Risk Management Study and carry out annual review. Murray Shire Local EMPLAN operational and reviewed annually.

Undertake training programs for Local Emergency Management Committee personnel.

Training is organised on a regional basis.

Require all levees to be subject to a Development Application process.

Development Applications for levees assessed when lodged.

NSW Office of Water also manages levees (approved or illegal) in floodplainareas.

Support local State Emergency Service (SES) Units in times of flood emergencies.

Liaison is ongoing with local SES units through the Local EmergencyManagement Committee (LEMC).

Develop Emergency Evacuation Plans for all Caravan Parks located on the floodplain within the Murray River Council area.

Evacuation plans are in place for all Council-owned Caravan Parks.

Plans are updated on an annual basis.

Reduction of noxious weeds. Works to reduce noxious weeds ongoing, now managed in-house.



Strategy: C. Waste Management

Principal Activity:

C1.

(i) Provide an efficient collection, disposal and recycling service in relation tosolid waste for Murray River Council.

(ii) Reduce our waste to landfill through effective waste managementincluding the Central Murray Regional Waste Group waste minimizationstrategies

(iii) Investigate the introduction of a green waste service for residentsAction Result

Provide a waste collection service for commercial and domestic waste to identified areas.

4,433 recycle and rubbish bins collected per week 3 formal complaints in respect of collection service. 100% of complaints investigated within 5 working days

Provide waste disposal facilities that meet the community needs and statutory requirements within budgeted levels of service.

Moama Waste Management Facility is managed and maintained inaccordance with EPA licence requirements. Draft Waste Management Strategy completed which will provide

recommendations for ongoing management of small rural landfills.

Provide a kerbside recycling service within Murray River Council.

Approximately 2,100 tonnes of recyclables collected and removed from thewaste stream, including that collected as part of the kerbside collectioncontract.

Investigate Food Organics Green Organics (FOGO) collection.

Green waste bins (garden organics only) implemented in communities ofMoama and Mathoura in accordance with Council-adopted Murray ShireCouncil Waste Management Strategy.

Meet cost per service pursuant to Local Government comparative information.

Council’s 2017/18 charge for the Greater Murray/Moama Wards was$198.99 per service and $287.00 for the Greater Wakool Ward.

Waste facilities managed in accordance with Council and statutory requirements.

Moama landfill is managed in accordance with Council’s LandfillEnvironmental Management Plan and the NSW Environmental Protection Authority’s (EPA) Guidelines for the “Management of Solid Waste Landfills” All rural landfills and transfer stations are managed within relevant

legislative requirements.Implement waste bin audit. Waste bin audit completed.

Implement FOGO kerbside collection. Roll out of green waste bins (garden organics only) in Moama and

Mathoura scheduled for 2018-19 FY.

Implement long-term Waste Disposal Strategy to ensure compliance with the Office of Environment and Heritage (OEH) Guidelines.

Murray River Council Draft Waste Management Strategy completed forreview and consultation.



Importance Rating

Council Performance



Waste management 78 74 69 71



Strategy: D. Integrated Water Cycle Management

Principal Activity:

D1.

(i) Provide environmentally sensitive arid effective stormwater collection anddischarge systems appropriate to community needs

(ii) Provide assets and systems appropriate for the needs of the MurrayRiver Community ensuring the provision of adequate water supply andsewerage collection and treatment services.

(iii) Continue water wise initiatives to promote reduced water consumptionAction Result

Maintain open waterways, piped drains and detention basins.

60m of drainage outfall complete

1 formal complaint in relation to drainage.

Provide urban drainage to enable one (1) in five (10) year ARI protection.

Augmentation works programmed where deficiencies have been identified

Review drainage design capacity for Mathoura and Moama.

Moama North West drainage investigation underway

Provide drainage discharge, which complies with the Office of Environment and Heritage (OEH) requirements and Council’s Stormwater Management Plan.

Perform regular tests on outflow of all Storm Water Basins

Nil instances of water quality not complying with Council’s StormwaterManagement Plan.

Implement Stormwater reuse schemes in accordance with Integrated Water Cycle Management principles and cooperate with the Echuca Moama Sustainable Water Group.

Seven (7) Stormwater reuse schemes operating as follows:

Layfield Downs, Moama

Perricoota Run, Moama

Moama Business Park

Echuca Street, Moama

Nicholas Drive North, Moama

Moama Recreation Reserve

Hollara Drive, Moama

Carry out drainage system improvements as contained in budget, utilising a drainage charge.

System improvements are scheduled for the 2018/2019 year

Water provided to World Health Standards on the basis of 100% compliance.

Nil instances of below/outside standard water quality World HealthStandards.

Nil formal complaints.


Progress Report

No water restrictions to be imposed because of inadequate infrastructure.

Nil unscheduled water restrictions outside the accepted limits of theStrategic Business Plan

Carry out water system improvements, as contained in Council’s budget.

Progress of Capital Works Program:

Valve Replacement Program – Complete

Francis St Water Main replacement – Complete

Mains replacement Baratta St, Moulamein - Complete

Troughs and Launders Mathoura Filtration Plant – Complete

Internal Repaint FW Reservoir Barham – Complete

Air Scouring Barham – Complete

Pressurisation Moama WTP – Complete

Upgrade mains Livingstone Street Mathoura – Complete

Ensure system operates efficiently and environmentally with minimum inconvenience to the public.

Nil formal complaints.

7 chokes per length of gravity main.

1 break per length of rising main.

8 service connection failures.

Carry out sewerage system improvements, as contained in Council’s budget.

Progress of Capital Works Program:

Erosion control – Murray Downs Sewer Treatment Works – Complete

Weed control Tooleybuc – Complete

Odour Control/Well Washers Barham – Complete

Participate in Regional Alliance for water and sewer functions. Ongoing



Importance Rating

Council Performance



Water & sewerage services

80 75 71 71


Progress Report

C. NATURAL ENVIRONMENT

Strategy: E. Environmental Protection and Enhancement of Murray Riverand National Parks

Principal Activity:

E1. (i) Meet community expectations and legislative requirements for

environmental protection and enhancement, through the developmentand implementation of programs addressing the impacts of soil andwater management, reserve planning and air, water and noisepollution;.

(ii) Protect environmental values of the Murray River andits environs.

(iii) Promote balanced use of National Parks for residentsand visitors.

Action Result

Participate in Murray River Council and regional based environmental organisations. Representation at RAMJO and other regional meetings as required

Monitor changes to the state of the environment within Murray River Council and produce annual State of the Environment (SOE) Report.

Produce SOE Report on a regional cooperation basis, in accordance withthe Local Government Act 1993.

Comply with relevant environmental legislation, in particular, the Protection of the Environment Operations (POEO) Act 1997.

Nil infringement notices issued or action taken under environmentallegislation for breaches of legislation

Ensure all construction/Council work sites have appropriate pollution control measures. Nil reported environmental damage from Council work sites.

Protect the Murray River environment in accordance with relevant Acts and legislation.

Council has ongoing liaison with Roads & Maritime Services and NSWNational Parks & Wildlife Service (NPWS) in respect of boating facilities.

Council representatives participate in the Murray Central (Echuca Moama)Regional Boating Advisory Group.

Advocate at appropriate forums. Council and local community interests are advocated for at forums

including RAMJO and with NSW Department of Planning and Environment.


Delivery Program Progress ReportSocial Wellbeing


Progress Report

D. SOCIAL WELLBEING

Strategy: A. Medical and Health Services

Principal Activity: A1.

(i) Support community specific health initiatives(ii) Support communities to attract and retain health care providers(iii) Lobby for and support the upgrade of Regional health facilities

Action Result

Maintain and expand existing levels of service to satisfy demands.

Levels of service has been maintained (outlined below)

Current levels of facilities maintained

Maintain meetings between Murrumbidgee Local Health District (MLHD), Echuca Regional Health (ERH) and Council and Medicare Locals.

Attend LHAC meetings of MLHD, to remain aware of health issues ofconcern, seeking opportunities to collaborate to achieve better healthoutcomes for the community.

Supported Murrumbidgee Local Health District in the transition ofcommunity health services to central intake, by attending communityinformation sessions to promote Murray River Council, Community Servicesto meet the gap of allied health service needs

Support Health and Wellbeing initiatives within the Murray River Council area.

Attendance and support at Gannawarra Medical Workforce meetings

Participation via sole sponsorship of the CWA Bush Bursary program, whichoffers 2 week placements to medical students (x 2) - MRC facilitatesaccommodation and local social support to student

Adopt the Murray River Council – Social Health and Well-Being Plan,including budget submissions for recommendations in 18/19 Budget

Attend the Mental Health Awareness Group network meetings in Deniliquin,to remain aware of observed needs s. services available.

Support start-up of Deniliquin Murrumbidgee Suicide Prevention program –network meetings

Establish regular and scheduled Client Advocacy Meetings to gain feedbackfrom consumers, cares and the wider community of suggestions for serviceimprovement/recognition of any unmet needs.

Support Echuca Regional Health (ERH) with capital improvements.

Major upgrades to Echuca Regional Hospital completed with some aspectsyet to be finalised. Council continued to provide support for the project.


Progress Report

Support Echuca Regional Health (ERH) with advocacy opportunities.

Support is provided as required

Action Result

Undertake a role in the administration of local public health and food surveillance.

All mandatory inspections under the Food Regulation Partnership werecompleted.

96 food premises were inspected during the year.

Develop and maintain an appropriate Food Premises and Legionnaires Register.

The food premises and legionnaires register was maintained and up to dateat all times

Undertake water quality sampling program of potable water. Water sampling was undertaken in accordance with sampling schedule

Ensure all septic tanks throughout the Murray River Council are operating in accordance with the minimum requirements of the Local Government Regulations 2005.

Septic Tank Register was operational and up to date

Undertake a Mosquito Disease Monitoring Program.

2017-18 program concluded in March 2018

Mosquito numbers were low for Jan – April 2018

Support Campaspe Murray Mental Health Network and other services for the target groups.

The Campaspe Murray Mental Health Network (CMMHN) continues toorganise relevant training locally, progress strategic objectives, support localactivities and initiatives and provides an opportunity for its members to shareinformation and network.

The current strategic focus for CMMHN includes homelessness, MentalHealth Week (raising awareness) and mental health education and training.

Support local homelessness working groups and initiatives.

Deniliquin Community Network meetings and other relevant groups attendedto remain aware of social and homelessness needs and service gap, andopportunities and partnerships.


Progress Report

D. SOCIAL WELLBEING

Strategy: B. Children and Youth

Principal Activity:

B1.

(i) Provide opportunities for the development and well-being of children andyouth within the Murray River Council area.

(ii) Encourage and facilitate education opportunities for residents(iii) Develop a youth framework – overall strategy for working with and

retaining youth including services and supportAction Result

Satisfy demand for preschool places in the four (4) year old age group within the Murray River Council area.

Council is responsive to community feedback on unmet needs and advocatesfor local community members as appropriate.

Assist preschools with minor planned capital improvements. Nil minor works scheduled.

Assist other child care services when appropriate. Funding of relevant opportunities are forwarded as they become available

Ensure Family Day Care Services are available to meet demand.

Intereach Family Day Care provides services in the Council area

Bambini sometimes operate services in Moama, depending upon theproviders available

Issue of lack of childcare services in Barham has been identified and optionsare being explored through the Economic Development Strategy in 2018-19.

Support Childhood Services initiatives. Council continued to provide space in the Moama Sporting & Children’s

Centre in Martin Street to house various children’s activities.


Progress Report

Provide and support general programs for youth activities within the Murray River Council area utilising Intereach.

Consult with funding body Family and Community Services, seeking support and endorsement of services being transitioned to direct service delivery

Evaluate previous youth services delivery model, through engagement with previous provider

Consult with the wider MRC community, through two stakeholder network meetings (Moama and Barham) to determine unmet needs

Evaluate information, and consider current resources and skillset to deliver services directly

Develop direct service delivery program

Promote and establish the Murray River Council – Youth Engagement Program

Attend industry training and sector briefings to remain upskilled and informed

Run two internal scheduled events for National Youth Week – day outings to Shepparton/Head Space and Swan Hill/Head SpaceCouncil supports the Beacon Foundation by sponsoring 2 students from the Moama Anglican Grammar School to take part in the ‘Real Futures Program’, in addition to a number of other initiatives to encourage positive pathways to employment for young people.

Promote relevant support and counselling services to youth within the Murray River Council area.

Youth Officers engaged within MRC’s Youth Engagement Program (YEP)attend relevant industry briefings, training and updates, to be proficient atoffering appropriate referrals to individual young people in the YEP.

Maintain, encourage and support expansion of educational facilities and programs.

Current facilities appear to be meeting demand, with Moama AnglicanGrammar School expanding every year.

Council has signed on to implement a structured workplace learningenvironment for local students.


Progress Report

D. SOCIAL WELLBEING

Strategy: C. Older Persons & Persons with Disabilities

Principal Activity:

C2.

(i) Encourage and facilitate education opportunities for older residents of theMurray River Council area.

(ii) Encourage and facilitate the provision of accommodation for the agedwithin the Murray River Council area.

(iii) Manage, develop and support a range of services to meet the identifiedneeds of the aged and disabled population of the Murray River Councilarea.

Action Result

Maintain, encourage and support expansion of educational facilities and programs.

Council has entered a partnering agreement with Riverina TAFE and workbased skills courses have commenced at all main administration sites ofMurray River Council. The partnership continues to grow with more coursesscheduled within the Murray River Council area, as required.

Assist the Moama Lions Community Village Committee and the Mathoura Retirement Village Management Committee to provide aged accommodation.

Council works with all committees to ensure that appropriate agedaccommodation facilities are provided in the long term.

Facilitate private aged accommodation facilities. Where approaches have been made by private / not for profit aged care

providers, Council has assisted them as appropriate.

Maintain operation of War Memorial Community Centre in Mathoura to meet the needs of the community.

Mathoura War Memorial Community Centre is used by the following user groups:

Mathoura Friendship Group (Wednesday)

MRC Community Services – Social Support/Community Access (Tuesday -Thursday)

United Hospital Auxiliary (UHA Mathoura) – monthly meeting

Mathoura Retirement Village committee – bi-monthly meeting

Children’s Playgroup (Thursday)


Progress Report

Maintain operation of Seniors Community Centre in Moama to meet the needs of the community.

The Centre is used by MRC Community Services, Home Support Programevery week day to provide social activities to older individuals in thecommunity. includes:

- Monday: Men’s Social Group - Tuesday:

- Special needs Chair-based Exercise and supported Social Group

- Bingo (p.m.)

- Wednesday: Chair-based Exercise and Social Support Group

- Thursday: Chair-based Exercise and Social Support Group

- Friday: AM Social Shopping Support; PM Seniors Indoor Bowls

Maintenance and expansion of government funded aged services.

Services delivered across the Murray River Council area:

- CHSP Transport (Frail-Aged)10,221 trips

- Community Transport (Isolated) 2,551 trips

- Health Related Transport - 600 trips

- Meals on Wheels 5,019 meals delivered

- Home Mods & Maintenance - 312 hrs delivered

- Social Support ......... 5,603 hrs delivered

- Supported Group Activities – 3,478 hrs delivered

- Respite Support .. 2,462 hours delivered

Support relevant organisations to deliver appropriate services to aged and disabled persons.

Provided mentoring and support to local based agencies transitioning intoMy Aged Care.

Council is in regular consultation with local disability service providers toassist them in identifying accommodation opportunities and address otherunmet needs.



Importance Rating

Council Performance



Elderly support services

79 73 67 64

Disadvantaged support services

73 67 67 60


Progress Report

D. SOCIAL WELLBEING

Strategy: D. . Aboriginal Cooperation & Development

Principal Activity: D1. Maximise opportunities for cooperation and development with the Aboriginal communities of the Murray River Council area.

Action Result

Convene meetings with the Aboriginal community, as required.

Council supported Yarkuwa Indigenous Cultural Centre in holding afootball/netball event in Mathoura in 2017.

Community Services interacting with Aboriginal communities to provideinformation and advice on services available.

Involve key members of the Aboriginal community in relevant issues.

Council continued its working relationships with local Aboriginal groups andrepresentatives.

Provide maintenance support for water and sewerage facilities in Aboriginal communities, in accordance with the Office of Water Management Plan.

Nil instances where water quality is outside of Standards.

Nil complaints about water supply. Nil complaints about sewerage.

Encourage Aboriginal employment initiatives. Council participates in local Aboriginal and other networks to promote and

share information regarding employment opportunities.


Progress ReportD. SOCIAL WELLBEING

Strategy: E. Arts, Culture, Community and Recreational Services

Principal Activity:

E1.

(i) Provide opportunities for cultural development to Murray River Councilresidents and provide information for heritage conservation.

(ii) Provide library services that will meet the community’s future needs,with innovative and enhanced library services that encourage lifelonglearning

Action Result

Utilise membership of South West Arts (SWA).

Council contributed to the development of the South West Arts strategicplan.

South West Arts supported communities within the council area in thedelivery of a range of arts and cultural projects including the MoulameinGalleries inaugural sculpture competition.

Council engaged with and sought advice from South West Arts in relationto a number of local arts-related projects.

Maintain Heritage Advisory Service.

Council continues to provide heritage advisory services to localcommunities and seeks advice where appropriate, regarding heritagematters.

Administer the Local Heritage Fund.

Council expended its heritage fund for the year in support of the deliveryof a range of local heritage projects.

Library increases to be within agreed limits. All library budget increases were within agreed and planned limits

Maintain community membership numbers at both Central Murray Regional Library and Campaspe Regional Library Service.

Central Murray Regional Library: Swan Hill Library

Total members – 2831 Total members – 999

Total new members – 331 Total new members – 110

Total loans – 55,573 Total loans – 16,849

Campaspe Regional Library:

Total members – 1,831

Total new members – 210

Total loans – 27,744



Importance Rating

Council Performance



Appearance of local areas

76 80 72 68

Community/cultural activities

64 64 61 62

Enforcement of local laws

72 69 63 62

Recreational facilities

75 73 65 66


Progress Report

D. SOCIAL WELLBEING

Strategy: F. Community Participation & Volunteering

Principal Activity: F1. Promote the advantages and community benefits of volunteering

Action Result

Support development of local volunteers.

Community Services volunteers currently at 100 across the Murray RiverCouncil area; Volunteers participated in training, development and ThankYou events

Mathoura Visitor and Business Centre (MVBC): volunteers remain static

Section 355 Committees of Council and volunteer committees/organisationscurrently under review in accordance with NSW LGA requirements –community Consultation completed, review ongoing.

Council participates in the Regional Volunteer Co-ordinators Network andstaged a volunteer wellness day in May 2018 as part of NSW VolunteersWeek.

D. SOCIAL WELLBEING

Strategy: G. Public Cemeteries

Principal Activity: G1. Provide, plan and manage cemeteries within the Murray River Council area to a practical standard and to meet future requirements.

Action Result

Maintain up to date interment records.

94 interments throughout Council’s six cemeteries

Interment records maintained and current

Council has investigated its processes for managing cemeteries andinterments in order to align these processes with best practice

Satisfy demand for interment plots.

Demand for plots and other forms of interment met on all occasions

Maintain level of community participation in local cemeteries, attractive standard.

Moama and Mathoura Cemetery Working Groups remain actively engaged

The cost to maintain Council’s cemeteries is as per budget

Implement Master Plan for Moama and Mathoura Cemeteries.

Council’s Moama cemetery continues to be managed according to theCemeteries Master Plan

Negotiations under way to acquire crown land to enable the enlargement ofMathoura Lawn Cemetery


Progress Report

D. SOCIAL WELLBEING

Strategy: H. Recreation, Reserves/Parks and Gardens

Principal Activity:

H1.

(i) Provide sporting fields, recreation grounds and facilities that can be utilisedfor a variety of sports.

(ii) Provide, maintain and improve parks, gardens, streetscapes and naturalbush land areas ,to create active and passive environment for theenjoyment of residents and visitors alike.

Action Result

Maintain sporting fields and recreation grounds to meet the needs of the Murray River Council local and regional sporting communities.

Nil formal complaints in relation to maintenance.

SCF Major Grants – Moulamein South Rec Reserve – Resurfaced netballcourts, upgraded netball lighting, installed new netball shelter, renovatedsports field and installed drainage, installed new ground perimeter fencing,AFL Goals and AFL goal nets

Replace 4 Hot Water Systems at Wakool Rec Reserve - Completed

Support further development of the Mathoura Recreation Reserve facilities.

Construct Rebound Wall at Mathoura Rec Reserve – Completed

Review the Master Plan Study for the Moama Recreation Reserve. Master Plan is being implemented as per identified targets and outcomes.

Support completion of Moama and Echuca Community Botanic GardensMaster Plan, in partnership with the community.

Work continued to scope future design and development stages.

Expressions of Interest called for Stage 5 landscape architecture.

Regularly maintain the visual amenity of all parks, gardens, streetscapes and reserves to a satisfactory schedule and standard.

Nil formal complaints in relation to unsatisfactory conditions.

Installed Central irrigation control systems to 29 sites to improve water usage – Completed

Planted 80 Semi Advanced street trees in Urban Areas - Completed

Continued maintenance of playground equipment to industry standards.

Replaced old equipment in fenced area and install shade structure – Barham Riverside Park – Completed

Maintain customer satisfaction (evidenced by2016 satisfaction survey)


Importance Rating

Council Performance



Recreation reserves 75 73 65 66

D. SOCIAL WELLBEING

Strategy: H. Recreation, Reserves/Parks and Gardens

Principal Activity:

H1.

(i) Provide sporting fields, recreation grounds and facilities that can be utilised for a variety of sports.

(ii) Provide, maintain and improve parks, gardens, streetscapes and naturalbush land areas ,to create active and passive environment for the enjoyment of residents and visitors alike.

Action Result

Maintain sporting fields andrecreation grounds to meet the needs of the Murray RiverCouncil local and regionalsporting communities.

Nil formal complaints in relation to maintenance.

SCF Major Grants – Moulamein South Rec Reserve – Resurfaced netballcourts, upgraded netball lighting, installed new netball shelter, renovated sports field and installed drainage, installed new ground perimeter fencing,AFL Goals and AFL goal nets

Replace 4 Hot Water Systems at Wakool Rec Reserve - Completed

Support further development of the Mathoura RecreationReserve facilities.

Construct Rebound Wall at Mathoura Rec Reserve – Completed

Review the Master Plan Studyfor the Moama RecreationReserve. Master Plan is being implemented as per identified targets and outcomes.

Support completion of Moama and Echuca Community Botanic GardensMaster Plan, in partnershipwith the community.

Work continued to scope future design and development stages.

Expressions of Interest called for Stage 5 landscape architecture.

Regularly maintain the visualamenity of all parks, gardens,streetscapes and reserves toa satisfactory schedule andstandard.

Nil formal complaints in relation to unsatisfactory conditions.

Installed Central irrigation control systems to 29 sites to improve waterusage – Completed

Planted 80 Semi Advanced street trees in Urban Areas - Completed

Continued maintenance ofplayground equipment toindustry standards.

Replaced old equipment in fenced area and install shade structure – BarhamRiverside Park – Completed

Maintain customersatisfaction (evidenced by 2016 satisfaction survey)

Comparativesatisfaction rating

Importance Rating

CouncilPerformance

Rural/RegionPerformance


Recreation reserves 75 73 65 66


Progress Report

D. SOCIAL WELLBEING

Strategy: I. Community Safety

Principal Activity: I1.

(i) Advocate for adequate policing and ambulance services.(ii) Collaboratively plan and deliver emergency response and recovery

services for emergency events.Action Result

Adequate Police and Ambulance Services

Council continues to engage with Local Area Command to ensure adequatepolicing and Murray District Ambulance to ensure adequate services are inplace.

Fire Management Provide advice on Fire Management issues through representations on theMid Murray Zone Bush Fire Management Committee and Zone LiaisonCommittee.

Implement Emergency Risk Management Study and carry out annual review.

Murray Shire Local EMPLAN Parts 1 & 2 authorised by Riverina MurrayRegional Emergency Management Committee on 23 March 2016.

Work continues on Part 3 of the former Murray Shire Local EMPLAN

Undertake training programs for Local Emergency Management Committee personnel.

Training is organised and delivered on a regional basis

Support local State Emergency Service (SES) Units in times of flood emergencies.

Liaison is ongoing with local SES units through the Local EmergencyManagement Committee (LEMC)

Excellent working relationship between Council and SES during the Oct/Nov2016 flood event across the Council area

Develop Emergency Evacuation Plans for all Caravan Parks located on the floodplain within the Murray River Council area.

Council’s staff has developed plans for Council-owned Caravan Parks

ATO will require updated plans on an annual basis



Importance Rating

Council Performance



Enforcement of local laws

72 69 63 62


Delivery Program Progress ReportEconomic Growth


Progress Report

E. ECONOMIC GROWTH

Strategy: A. Entrepreneurial Activities

Principal Activity:

A1.

(i) Provide Council-controlled land for quality Caravan Parks andCamping Grounds under arrangements that provide the best return toCouncil in terms of cash flow and asset maintenance and renewal.

(ii) Identify and implement land development projects that service gaps inlocal market supply.

(iii) Provide services to the community in areas of Council’s expertise thatcan provide a commercial return to Council while benefiting thecommunity.

Action Result

Maintain Murray River Council-owned caravan park operations in accordance with lease agreements.

All Council-owned caravan parks are operated in accordance with leaseagreements

Maximise income for Murray River Council from Murray River Council-owned caravan park leases in long-term.

Liston Caravan Park has been managed by Council since 1 July 2012 andCouncil is implementing compliance requirements

Murray River Council-owned caravan park assets maintained and renewed in accordance with Asset Management Plan and lease agreements.

Negotiations have progressed in relation to its adoption and implementationof the Master Plan for the Moama Riverside Caravan Park

Review of assets being undertaken at Picnic Point Caravan Park

Review the current infrastructure/design for the Murray River Council-owned Moama Riverside Caravan Park.

Council has come to an agreement with the Moama Riverside Caravan Parkowners on works to be completed as part of the Caravan Park Master Plan

Significant works are required to be completed on caravan park infrastructureover the next five years

Market the sale of industrial land at Murray River Council’s Moama Business Park. Demand for blocks in Moama Industrial Park has increased over the year

Provide quality services to the Murray River Council community at a price to achieve a minimum of 10% margin.

Work for private sector clients undertaken by Council has included graderhire, soil testing, developer contribution for roadworks and bitumen sealingand has achieved or exceeded the minimum 10% profit margin


Progress Report

E. ECONOMIC GROWTH

Strategy: B. Council Promotion

Principal Activity: B1.

(i) Promote the Murray River Council at every opportunity as an attractive andviable area for residual, commercial, industrial and recreational pursuits

Action Result

Annual growth rate of the Murray River Council area in excess of 1% per annum.

Murray River Council LGA population grew by 7% in the five years betweenthe 2011 and 2016.

This growth was not uniform across the LGA or major centres. Moama’spopulation grew by 9.8% whilst Wakool (-36.95%), Barham (-3.1%) andMathoura (-19.1%) all suffered population decline.

The two smallest centres in the LGA, Tooleybuc (+57%) and Murray Downs(+82.7%) grew significantly between 2011 and 2016.

Implement and enhance various promotional activities for the Murray River Council area.

Council works closely with Echuca Moama Tourism (EMT), Murray RegionalTourism Board (MRT) and neighbouring councils to promote the region.

The Backroads Trail is continuing to evolve and is one of the region’s mostpopular tourist experiences.

The Long Paddock is continuing to implement various marketing activities(promotion of the brochure, TV advertising, Facebook campaigns, etc.) Workhas started on the production of a new visitor guide that will be used topromote the whole of the Murray River Council LGA.

Work has also commenced to rebadge the former Wakool Rivers websiteand, as with the visitor guide, will now promote the whole region.

A new promotion and marketing plan is being developed that will help drivesome of the 1.3 million annual visitors to Echuca Moama to visit otherregions within the council area.


Progress Report

Connect existing businesses within the Murray River Council area with support to improve their operations.

Council engages and collaborates with various organisations to ensure thatlocal businesses have access to support and business networks. Theorganisations include;

o Murray Hume Business Enterprise Centre

o NSW Department of Premier & Cabinet Office of Regional DevelopmentMurray Business Network

o Committee for Echuca Moama

o Moulamein Community Development Inc

o Tooleybuc Piangil Action Group

o Murray Downs Advancement Group

o Echuca Moama Business & Trades Association

o Barham Consolidated Inc

Regional Economic Development Group (Cross border initiative involvingMurray River Council, Edward River Council, Berrigan Shire Council, MoiraShire Council (VIC), Campaspe Shire Council (VIC) and Ganawarra ShireCouncil (VIC)).

Assistance is provided to existing and potential businesses on request.

Tourism related businesses are supported by Murray River Council incollaboration with;

o Echuca Moama Tourism

o Murray Regional Tourism Board

o Shire of Campaspe (VIC)

Assist new and expanded business opportunities within the Murray River Council area to expand employment.

Council’s Economic Development & Tourism Team in collaboration with othercouncil teams consults with proponents wishing to develop new businessesor expand existing businesses to make the experience as quick and hasslefree as possible. These opportunities also, often, involve collaborating withstate and federal government departments. Assistance is provided to existingand potential businesses, as needed

Individual businesses are assisted as required. Council regularly receivesenquiries from businesses seeking information about relocating to Moama.

Operate the Mathoura Visitor and Business Centre (MVBC) to maintain services, and work with the community of Mathoura to assist economic development opportunities and the promotion of Mathoura.

The business centres are strategically located to provide a high level ofcustomer service resulting in timely and effective resolution of customerissues and matters requiring day to day interaction with council.

The service centre at Mathoura also doubles as a community hub wherelocal organisations can meet on a regular basis.

Service Centres also cater for visitors, providing information on local eventsand activities.


Progress Report

E. ECONOMIC GROWTH

Strategy: C. Event Attraction/Tourism Promotion

Principal Activity:

C1.

(i) Establish Murray River Council as a major venue for local, state and national eventsincluding conferences.

(ii) Develop and implement Council’s Tourism Strategy(iii) Support tourism partnerships with industry, funding bodies and stakeholders(iv) Promote and further develop Murray River Council area as a tourism destination(v) Facilitate opportunities for improved rail, air and bus services to service freight and

passengers(vi) Retain prime agricultural land and farm viability through the development of local

food production promotion, value adding and shared resourcesAction Result

Provide sponsorship and support to certain community events within the Murray River Council area.

Events supported by Council during 2017-18 included:

Southern 80

Carpe Diem - Moama performance

CLRS dinner

Winter Blues Festival

D2Drumline music workshops

Yarkuwa Football Event

Speed Shear

Christmas Lights

Christmas Spectacular

Isaiah Firebrace workshops

Murray Business Network events

Echuca Moama Cycling Club Junior Carnival

NAIDOC Week activities

Flavours of Echuca Moama

Apex Gift

Swan Hill Country Music Walk Up event

Murray Downs Field and Game

Understanding Forgotten Australians conference

Business Week events

International Women’s Day

Sports Community workshops


Progress Report

Support Echuca Moama Regional Tourism to promote the region as an event and conference location.

Echuca Moama Tourism is actively promoting Echuca Moama as a weddingdestination (via advertising and expos)

Echuca Moama Tourism, Murray River Council and the Shire of Campaspe(Vic) are developing opportunities to attract new events to the region, aswell as grow and develop specific local events..

Echuca Moama Tourism and Murray Regional Tourism Board promote theMurray River Region to event organisers.

Barham Newsagency provides information services to visitors to the regionseven days a week.

Develop new, and maintain existing, promotional tools and methods for Murray River Council.

Work has commenced on the development of an updated and re-brandedvisitor guide for the whole of the Murray River Council region.

The former Wakool Rivers website is also being rebranded to cover alldestinations in the council area.

These tools will be linked to the Visit Echuca Moama website and visitorcentre to help drive visitation into the regions.

Distribution of local brochures and promotion of websites is ongoing

Other website links include;

https://www.destinationnsw.com.au/

https://www.echucamoama.com/

http://barhamkoondrook.com.au/

https://www.visitthemurray.com.au/

http://www.murrayregionaltourism.com.au/

https://www.tourismvictoria.com/

http://www.backroadstrail.com.au/

Other digital promotion occurs through Facebook and Instagram.

Further develop The Long Paddock and Backroads Trail projects as a means of tourism promotion for the Murray River Council area.

The Long Paddock has been working to increase ‘product’ available alongthe route to generate awareness, visitation and economic benefits for thearea.

The Long Paddock continues to generate good media exposure

The Long Paddock brochure continues to be widely distributed

The Long Paddock is working with NSW National Parks and WildlifeService to investigate opportunities for cross promotion

The Long Paddock merchandise is available for sale along the LongPaddock route

The Long Paddock Marketing Plan is being implemented

Funding applications to develop and promote the Long Paddock route areregularly submitted

The Backroads Trail continues to receive good media exposure (including afeature in the Sydney Weekender TV program) and positive interest

The Backroads Trail partners with various events and organisations toshowcase the region’s fresh produce where possible


Progress Report

Work with the Shire of Campaspe (Victoria), Echuca Moama Regional Tourism, Destination NSW and Tourism Victoria, as well as the new Murray River Regional Tourism Board, to ensure Murray River Council is involved, and benefits from, tourism activities undertaken by these organisations.

Council is continually working with the following organisations to further develop and promote tourism in our region:

Shire of Campaspe

Murray Regional Tourism Board

Murray River Local Government Authorities (LGAs)

Backroads Trail Development Committee

Echuca Moama and District Tourism (EMT)

Echuca Moama Accommodation Association

Echuca Moama Attractions Associations

The Long Paddock Committee

NSW National Parks and Wildlife Service

Destination NSW

Tourism Victoria

NSW Office of Regional Development

Regional Development Australia (RDA) Murray

Deniliquin Visitor Information Centre

Edward River Council

Hay Shire Council

South West Arts

Invest Regional NSW

Work with NSW National Parks and Wildlife Service to maximise economic development opportunities for National Parks located within the Murray River Council area.

NSW National Parks and Wildlife Service (NPWS) have implemented asignificant capital works program to improve facilities for visitors.

As well as the development of the ‘five mile’ mountain bike trail and boatramp a new, all abilities, canoe launching pontoon was installed on theEdward River at Edward River Bridge campsite between Mathoura andPicnic Point.

A marketing plan has also been developed and implemented and it ishoped that other projects, including boat ramps and toilet facilities and traildevelopment, will be funded in the next budget period.


Progress ReportE. ECONOMIC GROWTH

Strategy: C. Telecommunications

Principal Activity: C1.

(i) Advocate to improve telecommunications infrastructure and services to allMurray River Council residents.

Action Result

Advocate for full high speed broadband coverage across

the Murray River Council area by 2019.

Council continues to advocate for its local communities in establishing localNBN fixed line services.

A ‘Check your Address’ widget is on the NBN website, which allows residentsto register with the NBN and receive advice as to when the NBN network isswitched on.

Advocate for improved mobile phone coverage across the Murray River

Council area.

A Memorandum of Understanding (MoU) is in place between Council andTelstra for proposed cost sharing of Blackspot solution.

Bunnaloo telecommunications tower completed and operational, with acontribution from Council totalling $30,000.

E. ECONOMIC GROWTH

Strategy: D. Enhance Infrastructure to Attract Business Opportunities

Principal Activity:

D1 (i) Improve banking services in Council area through exploring the

opportunity of establishing a Council wide community bank or alike(ii) Ongoing improvements to roads and transport to facilitate access to

marketAction Result

Improve banking services in Council area

The four primary banks are continuing to reduce local branches with resultantjob losses and reduced service levels. Council continues to negotiate for theretention of banking services in our local communities.

Improvements to roads and transport

• Sealed Road constructed – 9.0km

• Kerb & Gutter constructed – 698m

• Bike Paths constructed – 432m

• Construction underway on the Nimmie-Caira Bridge Projects- Pee VeeCreek, Deadmans Creek and Waugora Creek

• Pre-construction activities completed on the following Bridges:Fountains Road-Merran Creek Bridge, Colenso Park Road – MerranCreek Bridge, Moulamein-Swan Hill Road – Merran Creek BridgeRepairs


Progress ReportE. ECONOMIC GROWTH

Strategy: E. Business Development – A stronger and more diverse localeconomy

Principal Activity:

E1. (i) Develop and assist existing businesses in Murray River Council(ii) Identify and develop partnerships with business service

providers and state government agencies(iii) Develop and implement Council’s Economic Development Strategy

Action Result

Engaged and collaborated with Echuca Moama Tourism, Murray RegionalTourism, Campaspe Shire, Moulamein Community Development Inc,Barham Consolidated and Tooleybuc Piangal Action Group to develop andimplement Tourism and Economic Development Strategies.

Visitor numbers to the region increased by 13.7% at Echuca Moama and4.9% across the rest of the Murray River Council Area during 2017/18.

Through Echuca Moama Tourism actioned formation of Promotion &Marketing, Product and Event Development and Visitor Servicing workinggroups.

Commenced community engagement to develop Economic Developmentand Tourism Strategic Plan.

Engaged ‘Communication Works’ to assist in developing a new regionalbrand and re-badging and upgrading the Wakool Rivers Website.

Commenced development of a new Murray River visitor guide andassociated print and digital collateral.

Commenced development of photographic and videography collateral.

Developed MOU with Darts Australia to bring the 2019 Australian dartsChampionships and an international darts tournament to Moama in 2019.

Signed agreement to bring the NSW Senior Men’s, Ladies and FoursomesOpen Golf Championships to Rich River Golf Club Moama and MurrayDowns Golf Resort in Murray Downs during 2019.

Action Result

Presented numerous business networking opportunities throughengagement with Committee for Echuca Moama, Moulamein CommunityDevelopment Inc, Tooleybuc Piangal Action Group, Murray BusinessNetwork, Murray Regional Tourism and Barham community including abusiness dinner during NSW Small Business Month which showcased localbusinesses.

Commenced discussions with APA Group in relation to increasing capacityand extending the service area of the natural gas network in Moama.

Developed a strategy to extend potable water supplies in Barham, Moamaand Tooleybuc to enable new business development and expansion ofexisting business.

Signed an MOU with developers to develop five major projects in theMurray River Council area. The first project is the development of a 350Mwsolar energy farm north of Moulamein.

Negotiating a number of commercially sensitive major projects across the area that will commence during 2018 – 2020.

Work with existing businesses in MRC to develop an Economic Development Plan that will stimulate business and increase visitors to the region.

Develop and implement Economic Development strategies and key stakeholder networks that will encourage development opportunities.


Statutory Report


Statutory ReportATTACHMENT

A. LEADING COMMUNITY (GOVERNANCE)

Strategy: A. Community Partnership

Action: Ensure compliance with Customer Service Charter performance targets.

Indicator Measure Target Results

Correspondence

Response Rate

Percentage (%) of items requiring “Action” that are responded to within 21 days

> 60% Achieved

Meeting Agendas Distribution time agenda > two (2) working days prior to the meeting >95% Achieved

Budget Complete budget prior to 30 June 100% Achieved

Budget Reviews Complete within 60 days of month end >95% Achieved

Annual Statements Send to Department prior to 7 November >95% Achieved

Rates Levy Levy prior to 1 August >95% Achieved

Rates Certificate of Compliance Send to Department prior to 7 November >95% Achieved

Monthly Bank Reconciliations Prior to Meeting Agenda cut off >95% Achieved

Business Activity Statements Send prior to 21 days of month end >95% Achieved

Fringe Benefits Tax Return Send prior to 31 May >95% Achieved

Grants Contributions Certificates Within 30 days of month end >80% Achieved

Development Applications Median Development Application time < 55 days > 90% Achieved

Multi Service Outlet Consumer Response Within five (5) days >95% Achieved

Library Applications Within one (1) day >95% 100%

Library Resource Reservations Within three (3) weeks, subject to availability >95% 100%

Interlibrary Loan Requests Within three (3) weeks, subject to availability >95% 100%

Library Resource Transfers Within one (1) day >95%Transfers completed fortnightly as per CMRL SLA – 100%


Statutory Report

Section 428 (4) (a) Audited Financial Statements

The Financial Statements for the year ended 30 June 2018 are prepared to comply with the applicable Australian Accounting Standards, the requirements of the Local Government Act 1993 and regulations thereto, the Local Government Code of Accounting Practice and Financial Reporting (Update No. 24).

A copy of Murray River Council’s unaudited Financial Statements are attached as Appendix 1. A copy of the audited Financial Statements will be attached as Appendix 1 when the audit has been completed.

Clause 132 Amount of rates and charges written off

Rates & Charges Written Off

Pensioner Abandonments $415,749

Ordinary Rate Abandonments $98

Waste Management Charges Abandonments $11

Water Supply Charges Abandonments $10,854

Sewerage Charges Abandonments $33

Stormwater Management Charges Abandonments $1TOTAL $426,746

Section 428 (4) (a) Audited Financial Statements

The Financial Statements for the year ended 30 June 2018 are prepared to comply with the applicable Australian Accounting Standards, the requirements of the Local Government Act 1993 and regulationsthereto, the Local Government Code of Accounting Practice and Financial Reporting (Update No. 24).

A copy of Murray River Council’s unaudited Financial Statements are attached as Appendix 1

Clause 132 Amount of rates and charges written off

Rates & Charges Written Off

Pensioner Abandonments $415,749

Ordinary Rate Abandonments $98

Waste Management Charges Abandonments $11

Water Supply Charges Abandonments $10,854

Sewerage Charges Abandonments $33

Stormwater Management Charges Abandonments $1 TOTAL $426,746


Statutory Report

Local Government (General) Regulation 2005 Clause 217 (1)

(a) Overseas visits by Councillors and Council staff

During the period, being 1 July 2017 to 30 June 2018, there were no overseas visits on official Murray River Council business by Councillors or Council staff.

(a1) Payment of the expenses of, and the provision of facilities to, Councillors in relation to their Civic duties

During the period, being 1 July 2017 to 30 June 2018, the following amounts were expended in relation to the Murray River Council Councillors whilst performing their civic duties.

Councillor's Expenses

Councillor's Payment $107,816

Office and Minor Equipment $6,576

Telecommunications $6,047

Training $22,343

Travelling & Accommodation $60,505

Conferences and Delegates Fees $33,114

Interstate Travelling and Other Expenses $0

Overseas Travelling and Other Expenses $0

Partner Expenses $0

Child Care provisions $0

Insurances $20,674

Advertising, Printing and Stationery $23,568

Subscriptions & Memberships $2,445

Other Expenses $11,456

TOTAL $294,546


Statutory Report

Murray River Council PO Box 21, Mathoura NSW 2710 p 1300 087 004 f 03 5884 3417 e [email protected] w www.murrayriver.nsw.gov.au

(a2)Contracts awarded by the Council

Details of each contract awarded for amounts greater than $150,000 as follows

Name of Contractor Nature of Contract Contract Amount

Ixom Moulamein Water Treatment Plant upgrade $198,755.85 (ex GST)

VFG Skate Parks Design and Construction of Barham Recreation reserve skate park $317,000.00 (Inc GST)

Zenith Planning Review and Consolidation of Murray River Council’s Land Use Strategic Plan and Local Environmental Plan

$172,950.00 (ex GST)

Murray Constructions Pty Ltd Construction of reinforced concrete bridges at Pee Vee Creek, Deadmans Creek and Waugorah Creek in Waugorah

$1,434,500.00 (ex GST)

Hazem Pty Ltd trading as Gleeson Exavations

Natural disaster flood restoration works for local and regional roads $1,360,917.99 (ex GST)

Murray Constructions Pty Ltd Construction of reinforced concrete bridges on Colenso Park Road at Yarrien Creek, Barham and Fountain Road at Merran Creek, Mellool.

$1,336,820.00 (ex GST)

Geelong Abrasive Blasting Pty Ltd Upgrade of the Barham Filtered Water Reservoir $388,298.00 (ex GST)

Murray Constructions Pty Ltd

Design and Construct contract for structural repairs for renewal of Merran Creek Bridge on Moulamein-Swan Hill Road, Dilpurra.

$887,700.00 (inc GST)

L M Whelan

Picnic Point Caravan Park – Renovation of residence Shop and Office $418,964.00 (inc GST)


Statutory Report

(a3) Legal proceedings taken by, or against, the Council

During the period, being 1 July 2017 to 30 June 2018, Murray River Council incurred a total of $141,827 in relation to the cost of legal proceedings taken by Council. A proportion of these legal costs were recovered or incorporated in rates and charges in respect of rateable land.

A summary of the progress of legal proceedings is detailed below:

Legal Proceedings Rates & Charges debt recovery action $39,744 Town Planning legal matters $46,944 Other legal matters $55,139 TOTAL $141,827

(a4) Work carried out on private land under section 67 of the Act During the reporting period, Council undertook activities recorded as Private Works for 86 individuals or entitles. The work included Bridge lifts and works, sewerage system work, use of council equipment, bridge barrier fence a service agreements to Aboriginal communities, work done for individuals does not include a description of the work. The total revenue from private work is $907,158.

(a5) Financial assistance under Section 356 of the Act

Murray River Council contributed the following amounts to the entities listed below for exercising its function in accordance with the spirit of Section 356 of the Local Government Act, 1993.

(a4) Work carried out on private land under section 67 of the Act During the reporting period, Council undertook activities recorded as Private Works for 86 individuals or entitles. The work included Bridge lifts and works, sewerage system work, use of council equipment, bridge barrier fence and service agreements to Aboriginal communities. The total revenue from private work is $939,498. No works were carried out where the approved fee was not charged.

(a5) Financial assistance under Section 356 of the Act

Murray River Council contributed the following amounts to the entities listed below for exercising its function in accordance with the spirit of Section 356 of the Local Government Act, 1993.

Contributions Granted under Section 356

Moulamein Race Club $1,500

Barham & District Show Society $1,500

Wakool & District Show Society $1,500

Moulamein Swimming Pool $17,090

Koondrook Pool Committee $8,500

Nyah Swimming Pool $2,500

Moulamein Angling Club - Duck Race $100

South West Arts - Membership/Donations $12,938

Tooleybuc Medical Centre $771

Echuca/Moama Beacon Foundation $1,540

Southern 80 $6,381

Allied Health Medical Scholarship $6,000

Echuca Moama Artists Inc $500

Barham Deb Ball $500

Anzac Day Activities $5,287

Australia Day Activities $11,109

Rememberance Day Activites $755

Moulamein Pre-School – Car Rally & Yabby Races $250

Moulamein Arts & Crafts Council – Photography Competition $500

Mathoura District & Services Bowling Club $200

Speed Shear $2,000

Deniliquin Primary School Sports Carnival $100

Barham Catholic Scholarship $5,000

Edward River Council - Aerdrome Contribution $1,903

Lions Club - Carols by Candlelight $500

Moama Aboriginal Land Council - Youth Program $750

We Are Vivid - Youth Program $799

School Prentation/Citizenship Awards $1,560

Moulamein Community Health - Travel Subsidy $1,756 Rate Subsidies & Contributions - Pre-Schools $2,925

- Retirement Villages/Health Trust $4,024

- Scouts $903

- Church Buildings $3,344


Statutory Report

Contributions Granted under Section 356

Moulamein Race Club $1,500

Barham & District Show Society $1,500

Wakool & District Show Society $1,500

Moulamein Swimming Pool $17,090

Koondrook Pool Committee $8,500

Nyah Swimming Pool $2,500

Moulamein Angling Club - Duck Race $100

South West Arts - Membership/Donations $12,938

Tooleybuc Medical Centre $771

Echuca/Moama Beacon Foundation $1,540

Southern 80 $6,381

Allied Health Medical Scholarship $6,000

Echuca Moama Artists Inc $500

Barham Deb Ball $500

Anzac Day Activities $5,287

Australia Day Activities $11,109

Rememberance Day Activites $755

Moulamein Pre-School – Car Rally & Yabby Races $250

Moulamein Arts & Crafts Council – Photography Competition $500

Mathoura District & Services Bowling Club $200

Speed Shear $2,000

Deniliquin Primary School Sports Carnival $100

Barham Catholic Scholarship $5,000

Edward River Council - Aerdrome Contribution $1,903

Lions Club - Carols by Candlelight $500

Moama Aboriginal Land Council - Youth Program $750

We Are Vivid - Youth Program $799

School Prentation/Citizenship Awards $1,560

Moulamein Community Health - Travel Subsidy $1,756 Rate Subsidies & Contributions - Pre-Schools $2,925

- Retirement Villages/Health Trust $4,024

- Scouts $903

- Church Buildings $3,344


Statutory Report

RAMROC Membership $19,723

MDA Membership $3,325

Central Murray County Council $118,262

Campaspe Shire Council - Library $43,000

Edward River Council - Library $104,128

Railway Station Mural $750

Murray Downs Field Day $750

Campase Murray Mental Health $300

Swan Hill Country Music Association $500

Koori Kids $450

C4EM Bus Inc $455

Horizon 360 $455

Moama School Fete $200

Moama Local AboriginalLand Council $200

Border Tall & All $50

Echuca & District Poultry Club $50

Flavours of Echuca - EM Event $2,000

Mathoura Events $500

Community Living and Respite $3,000

Echuca Moama Cycling Junior Carnival $909

Echuca Moama Apex Gift $1,000

EM Event - Teddy Bears Picnic $5,000

Christmas Lights $273

YOYO Music - Workshop $1,000

Epicentre Church Christmas Spectacular $3,000

Yarkuwa Indigenous Football Event $1,500

Murray Business Network $3,150

Total $418,913


Statutory Report

(a6) External bodies that exercised functions delegated by Council

Murray River Council has the following section 355 Committees and other bodies which exercise management and operational functions delegated by Council:

Backroads Trail Committee Barham Boardwalk Committee Barham School of Arts Committee Barham Recreation Reserve Committee Bunnaloo Recreation Reserve Management Committee Caldwell Hall Management Committee Central Murray Regional Library (Library Services) Campaspe Regional Library (Library Services) Echuca Moama and District Tourism Association Inc. (Tourism Services) Goodnight Recreation Reserve & Hall Committee Koraleigh Public Hall Committee Koraleigh Recreation Reserve Committee Kyalite Progress and Recreation Reserve Committee Mallan Recreation Reserve & Hall Committee Mathoura Recreation Reserve Management Committee Mathoura Retirement Village Management Committee Moama Community Garden Committee Moama Lions Community Village Committee Moama Recreation Reserve Management Committee Moama and Mathoura Community Skate Parks Committee Moulamein Hall Management Committee Moulamein Centenary Recreation Reserve Committee Moulamein South Recreation Reserve Committee Moulamein Lake Committee Old Moulamein Courthouse Committee Noorong Community Centre Tooleybuc Recreation Reserve and Hall Committee Tooleybuc/Piangil District Action Group and Tooleybuc Bridgekeepers Cottage Management Committee Wakool Memorial Hall Committee Wakool Recreation Reserve Committee Wakool HACC Advisory Committee Womboota School of Arts/Hall Management Committee


Statutory Report

(a7) Controlling interest in corporations, partnerships, trust, joint ventures or other bodies

Murray River Council did not hold a controlling interest, either alone or in conjunction with other Councils, in any corporations, partnerships, trust, joint ventures or other bodies during the period.

(a8) Participation in corporations, partnerships, trust joint ventures, syndicates or other bodies

Murray River Council is involved with the following organisations: Central Murray County Council Murray River Tourism Limited Riverina and Murray Joint Organisation of Councils Southern Phone Company Strategic Purchasing Scheme Western Joint Regional Planning Panels (a9) Activities undertaken by the council to implement its Equal Employment Opportunity Management Plan

Murray River Council staff and volunteers are supported by a number of policies and procedures, to ensure EEO principles are maintained. Iincluding:

Workplace Discrimination and Harassment Policy;

Recruitment & Selection Policy;

Staff Performance Management/Disciplinary Policy, as well as a

Grievance Management Procedure.

Return-to-Work Program.

All of these Council policies have been developed and reviewed in consultation with Council’s staff. As at 30 June 2018, Murray River Council employed 190 employees, consisting of 65 females and 125 males.

In the filling of staff vacancies, Council advertises all vacant positions in the organisation utilising various media forums to access the market.

Newspaper recruitment advertisements are an expensive alternative, with electronic mediums, such as Seek and Local Government Job Directory, being more cost effective and disseminated to a larger demographic.


Statutory Report• Workplace Discrimination and Harassment Policy;

• Recruitment & Selection Policy;

• Staff Performance Management/Disciplinary Policy, as well as a

• Grievance Management Procedure.

(b) Remuneration package of the General Manager

For the period 1 July 2017 to 30 June 2018

i. Total Value of Salary component $260,000

ii. Total amount of any bonus or performance payments that do form part of salary

$0

iii. Total amount payable employers contribution or salary sacrifice to any superannuation scheme

$24,700

iv. Total value of non-cash benefit – vehicle $13,172

v. Total amount payable by Council Fringe Benefits Tax $12,132

(c) Total of Remuneration packages of all senior staff

For the period 1 July 2017 to 30 June 2018

i. Total Value of Salary component $350,371

ii. Total amount of any bonus or performance payments that do form part of salary

$0

iii. Total amount payable employers contribution or salary sacrifice to any superannuation scheme

$33,285

iv. Total value of non-cash benefit – vehicle

$26,344

v. Total amount payable by Council Fringe Benefits Tax

$23,498

**** There were only 2 of the 3 Director positions filled as at the 30th June 2018

(e) Stormwater Management Services provided by Council

Stormwater management can be broadly defined as managing the quantity and quality of stormwater runoff from a catchment with the aim of:

• Minimising stormwater impacts in aquatic ecosystems e.g. reducing turbidity, gross pollutants and nutrient inflow;


Statutory Report

(e) Stormwater Management Services provided by Council

Stormwater management can be broadly defined as managing the quantity and quality of stormwater runoff from a catchment with the aim of:

Minimising stormwater impacts in aquatic ecosystems e.g. reducing turbidity, gross pollutants and nutrient inflow;

Minimising flooding impacts ; and

Utilising stormwater as a water resource.

During the period July 2017 to June 2018

A number of Stormwater extensions were constructed to accommodate stormwater run-off.

Developers were encouraged to implement water sensitive urban design principles and to limit the export of pollutants into the downstream receiving waters.

Council replaced and cleared a number of storm drains to limit damage to properties.

Council engaged a consultant to prepare a report on the Moama Mid-West Drainage system. The results of the study will be available during the next financial year.

Stormwater Management Charges:

Adopted in May 2010 for a 10 year period in Barham was still in place; and

Adopted in June 2012 to run until 2021 in Moulamein was still in place.


Statutory Report(f) Council’s activities in relation to enforcing and ensuring compliance with the provisions of the

Companion Animals Act 1998 and Companion Animals Regulation 2008

Guidelines on the Exercise of Functions under the Companion Animals Act

Lodgement of pound data collection returns with the Office of Local Government (OLG) 16.2 (a) Guidelines:

The pound data details have been submitted to the OLG, as required.

Companion Animals seizure (2017/18 survey submitted to OLG) 16.2 (b) Guidelines: An annual report detailed the number of animals impounded and the way they were released. It was sent to the Division of Local Government and it showed a decrease in the number of animals being impounded.

The figures provided through the reporting program are detailed as follows;

Seized by Council Ranger ........................... 123 Returned to owners ....................................... 78 Re-housed through LDH ................................ 27

Lodgement of dog attack reports

It is mandatory for all dog attack data to be lodged with the Office of Local Government in accordance with the Companion Animals Act. This legislation requires a dog attack incident to be report to the OLG within 72 hours of the incident.

There were 9 incidents of dog attack reported during the period. 3 dogs were declared dangerous.

Amount of funding spent relating to companion animal management and activities 16.2 (c) Guidelines:

25% of all expenditure on the management of animals approx. $180k was spend on the management and other activities involving companion animals.

Companion animal community education programs carried out (including de-sexing of cats anddogs)!6.2 (d) Guidelines 16.2 (d) Guidelines:

Council’s Rangers have undertaken various education activities and information articles through the local media. This includes concentrated patrols in problem areas, concentrating on education and enforcement. Council’s website is also a major source of information.

Strategies for alternatives to euthanasia for unclaimed animals 16.2 (e) Guidelines:Council has a working relationship with the Pets Haven (Woodend), where Council has an arrangement with the organisation to make every effort to find new owners for unwanted pets.

Off leash areas provided in the council area 16.2 (f) Guidelines :Council has two (2) designated off leash areas located at the:

- Old Trotting Track at the Moama Recreation Reserve, Perricoota Road; and- Kiely Road walking track.


Statutory Report

Local Government Amendment (Environmental Upgrade Agreements) Act 2010 s54P

Murray River Council has not entered into any Environmental upgrade agreements during the 2016/17 reporting period.

Local Government (General) Regulation 2005 Clause 508 (2) 508A

Murray River Council, did not apply for a special waste rate variation associated with the domestic waste management charge.

Report on capital works projects Murray River Council had no proposed capital works projects where a capital expenditure review had been submitted on the Office of Local Government Expenditure Guidelines.

Swimming Pools Act (SP Act) 1992, s22F(2) Swimming Pools Regulation 2018 (SP Reg) cl 23 Murray River Council completed the following inspections during 2017/2018

Number of inspections of tourist and visitor accommodation - 0 Number of inspections of premises with more than 2 dwellings - 1 Number of inspections that resulted in issuance of Certificate of Compliance under s22D of the SP

Act - 7 Number of inspections that resulted in issuance a certificate of non-compliance under cl21 of the Sp

Reg - 3

Government Information (Public Access) Act 2009 and Regulation s125(1)

Part 7 Section 125 (1) of the Government Information (Public Access) Act 2009, known as the GIPA Act, states that each agency (of which Murray River Council is one) 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. Council fulfilled its responsibilities in regard to reporting for the 2017-2018 year. In addition, a GIPA Information Guide was adopted by Council and uploaded to the website. During 2017-2018 6 formal information access applications were received and completed.

77

Annual Report 2017 - 2018

- Old Trotting Track at the Moama Recreation Reserve, Perricoota Road; and - Kiely Road walking track..

Local Government Amendment (Environmental Upgrade Agreements) Act 2010 s54P

Murray River Council has not entered into any Environmental upgrade agreements during the 2016/17 reporting period.

Local Government (General) Regulation 2005 Clause 508 (2) 508A

Murray River Council, did not apply for a special waste rate variation associated with the domestic waste management charge.

Report on capital works projects Murray River Council had no proposed capital works projects where a capital expenditure review had been submitted on the Office of Local Government Expenditure Guidelines.

Swimming Pools Act (SP Act) 1992, s22F(2) Swimming Pools Regulation 2018 (SP Reg) cl 23 Murray River Council completed the following inspections during 2017/2018

Number of inspections of tourist and visitor accommodation - 6 Number of inspections of premises with more than 2 dwellings - 2 Number of inspections that resulted in issuance of Certificate of Compliance under s22D of

the SP Act - 62 Number of inspections that resulted in issuance a certificate of non-compliance under cl21 of

the Sp Reg - 16

Government Information (Public Access) Act 2009 and Regulation s125(1)

Part 7 Section 125 (1) of the Government Information (Public Access) Act 2009, known as the GIPA Act, states that each agency (of which Murray River Council is one) 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.


Statutory Report

Environmental Planning and Assessment Act 1979 s93G(5)

Council did not enter into any planning agreements during the 2017/18 financial year.

Public Interest Disclosure Act 1994 and Regulation s31 cl4

Similar to the reporting requirement under the GIPA Act and Regulations, Councils are required to submission a Public Interest Disclosures Annual Report to the Minister and a copy is also provided to the NSW Ombudsman. Council submitted their Public Interest Disclosure (PID) Annual Report with the required timeframe, which is within 4 months after the end of the financial year. Council received no submissions for the 2017-2018 year

Aged Care Act 1997 To enable the delivery of the Murray River Council, Community Services Home Support Program, Council is required to comply with the legislative requirements within the Aged Care Act. 1997, and follow the associated guidelines set out in the Commonwealth Home Support Program Guidelines and associated Terms and Conditions.

Disability Inclusion Act 2014 s13(1)

The Disability Inclusion Action Plan which was developed by Murray River Council, which defines strategies and provides a planning framework to promote inclusion and equity for people with disability, so they may fully participate in, and contribute to, social, business and community life. The Disability Inclusion Action Plan will enhance and complement the existing service provision within the area.

The goals and strategies of Murray River Council are underpinned by four (4) themes which provide focus and direction for the Integrated Planning and Reporting (IPR) framework. The four focus areas for the DIAP may be positioned within those:

Murray River Community Strategic Plan -themes

Focus Areas for DIAP

CSP1 (Community) Liveable communities Focus Area 2 Positive community attitudes and

behaviours, Focus Area 1 CSP2 (Environment) Liveable communities Focus Area 2 CSP3 (Economic) Supporting access to meaningful

employment, Focus Area 3 CSP4 (Governance) Improving access to services through

better systems and processes, Focus Area 4


Financial Statements

Murray River Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2018

Financial Statements 2018

Murray River Council

General Purpose Financial Statements for the year ended 30 June 2018

Contents

1. Understanding Council’s Financial Statements

2. Statement by Councillors and Management

3. Primary Financial Statements:

– Income Statement– Statement of Comprehensive Income– Statement of Financial Position– Statement of Changes in Equity– Statement of Cash Flows

4. Notes to the Financial Statements

5. Independent Auditor’s Reports:

– On the Financial Statements (Sect 417 [2]) – On the Conduct of the Audit (Sect 417 [3])

Overview

21 Conargo StreetMathoura NSW 2710

Council’s guiding principles are detailed in Chapter 3 of the LGA and includes:

principles applying to the exercise of functions generally by council,principles to be applied when making decisions,principles of community participation,principles of sound financial management, andprinciples for strategic planning relating to the development of an integrated planning and reporting framework.

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

Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimumcost. All press releases, financial statements and other information are publicly available on our website:www.murrayriver.nsw.gov.au.

Murray River Council is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:

8

9

Page

4

67

5

2

3

page 1

Financial Statements 2018_

Murray River Council General Purpose Financial Statements for the year ended 30 June 2018 Understanding Council’s financial statements

page 2

Introduction Each year, individual local governments across New South Wales are required to present a set of audited financial statements to their council and community. What you will find in the statements The financial statements set out the financial performance, financial position and cash flows of Council for the financial year ended 30 June 2018. The format of the financial statements is standard across all NSW Councils and complies with both the accounting and reporting requirements of Australian Accounting Standards and requirements as set down by the Office of Local Government. About the Councillor/Management Statement The financial statements must be certified by senior staff as ‘presenting fairly’ the Council’s financial results for the year and are required to be adopted by Council – ensuring both responsibility for and ownership of the financial statements. About the primary financial statements The financial statements incorporate five ‘primary’ financial statements: 1. The Income Statement

Summarises Council's financial performance for the year, listing all income and expenses. This statement also displays Council's original adopted budget to provide a comparison between what was projected and what actually occurred. 2. The Statement of Comprehensive Income

Primarily records changes in the fair value of Council's Infrastructure, Property, Plant and Equipment. 3. The Statement of Financial Position

A 30 June snapshot of Council's financial position indicating its assets, liabilities and “net wealth”. 4. The Statement of Changes in Equity

The overall change for the year (in dollars) of Council’s “net wealth”.

5. The Statement of Cash Flows

Indicates where Council's cash came from and where it was spent. This statement also displays Council's original adopted budget to provide a comparison between what was projected and what actually occurred.

About the Notes to the Financial Statements The Notes to the Financial Statements provide greater detail and additional information on the five primary financial statements. About the Auditor’s Reports Council’s annual financial statements are required to be audited by the NSW Audit Office. In NSW the auditor provides 2 audit reports: 1. an opinion on whether the financial statements

present fairly the Council’s financial performance and position, and

2. their observations on the conduct of the audit, including commentary on the Council’s financial performance and financial position.

Who uses the financial statements? The financial statements are publicly available documents and must be presented at a Council meeting between seven days and five weeks after the date of the Audit Report. The public can make submissions to Council up to seven days subsequent to the public presentation of the financial statements. Council is required to forward an audited set of financial statements to the Office of Local Government.



General Purpose Financial Statements for the year ended 30 June 2018

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

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

the Local Government Act 1993 (NSW) (as amended) and the regulations made thereunder,

the Local Government Code of Accounting Practice and Financial Reporting.

To the best of our knowledge and belief, these financial statements:

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

accord with Council’s accounting and other records.

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

Signed in accordance with a resolution of Council made on 27 November 2018.

Chris Bilkey Gen CampbellMayor Councillor27 November 2018 27 November 2018

Des Bilske Ross MallettGeneral Manager Responsible Accounting Officer27 November 2018 27 November 2018

the Australian Accounting Standards and other pronouncements of the Australian AccountingStandards Board

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page 3



Income Statement for the year ended 30 June 2018

$ ’000

Income from continuing operationsRevenue:Rates and annual chargesUser charges and feesInterest and investment revenueOther revenuesGrants and contributions provided for operating purposesGrants and contributions provided for capital purposes

Total income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsBorrowing costsMaterials and contractsDepreciation and amortisationOther expensesNet losses from the disposal of assetsRevaluation decrement / impairment of IPP&ENet share of interests in joint ventures andassociates using the equity method

Total expenses from continuing operations

Operating result from continuing operations

Net operating result for the year

Gain on local government amalgamation

Assets and liabilities transferred from former councils

Net result for the year

Net result attributable to Council

Net operating result for the year before grants andcontributions provided for capital purposes

13/5/16to 30/6/17

6,768

1,468

37,275

6,768

15

3,856

4d

44,043

2018

7,139 1,603

44

15,808

1,652 1,400

22,003

45,619

7,777

4,040 13,116

Actual Actual

17,260

15,522

27,869

15,010

44

191 15,006

4,350

6,669

704

307 9,758

14,648

644

4,504

40,042

–

Original

4,831

852

3b

3e,f1,147

15,401

3e,f

budget

5,300

188 11,988

12,001 9,242

unaudited

Notes

3a

3d3c

2018

1,160

16,499

4d

4b4c

4a

12,843 7,551

54e

57

–

6,768 6,669

6,768 6,669 22,003

– – 668,275

690,278

– –

46,711

2,629

67,622

8,887

690,278 6,669

X3A0T

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



Statement of Comprehensive Income for the year ended 30 June 2018

$ ’000

Net result for the year (as per Income Statement)

Other comprehensive income:

Amounts that will not be reclassified subsequently to the operating result

Gain (loss) on revaluation of IPP&EOther movements Revaluation Intangible AssetsTotal items which will not be reclassified subsequentlyto the operating result

Amounts that will be reclassified subsequently to the operating resultwhen specific conditions are metNil

Total other comprehensive income for the year

Total comprehensive income for the year

Total comprehensive income attributable to Council

23,681 9a

23,681 4,775

713,959

10 853

11,444

713,959

Notes

6,669 690,278

3,922

2018

23,681

11,444

4,775

–

13/5/16to 30/6/17

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Statement of Financial Position as at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesInventoriesOtherTotal current assets

Non-current assetsInvestmentsReceivablesInventoriesInfrastructure, property, plant and equipmentInvestments accounted for using the equity methodIntangible assetsTotal non-current assets

TOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesIncome received in advanceBorrowingsProvisionsTotal current liabilities

Non-current liabilitiesBorrowingsProvisionsTotal non-current liabilities

TOTAL LIABILITIES

Net assets

EQUITYAccumulated surplusRevaluation reserves

Total equity

8

1111

10

11

664,780

3,807

736,954

11,551

725,403

1,659

66,816

1,492 639

59,251

2

2017

4,135

25,664

6,571

2,763

3,518 71

725,854

7,903

713,959 11,895

3,992

23,681

2,872

820 384

12

1211

Notes

6a6b

797

662,037

259

3,763

1313

7

656,802

8

28,456

2 713

659,038

8,626

387

377

461

6b

61

7

2018

72,174

8

159

421

3,827

485

713,959

696,947

2,925

2,484

690,278

725,403

1,508 1,266

6,002 30,954

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Statement of Changes in Equity for the year ended 30 June 20182018

$ ’000

Opening balance

Net result for the year

Other comprehensive income – Gain (loss) on revaluation of IPP&E – Other movements (Revaluation Intangible Assets)

Other comprehensive income

Total comprehensive income (c&d)

Equity – balance at end of the reporting period

6,669 – 6,669 690,278 6,669 –

equity

IPP&E2018

690,278 23,681 713,959

revaluation TotalNotes surplus reserve

9a – 3,922 10 – 853 853

– 4,775

6,669 4,775

13/5/16to 30/6/17

696,947 28,456 725,403

revaluation TotalIPP&E

equity

–

surplus

– –

reserve

690,278 – – 690,278

– 23,681

690,278

23,681 – – –

23,681

690,278 23,681

– 23,681

713,959

713,959 23,681 690,278

Net result for the year prior to correction of errors and changes in accounting policies

Accumulated Accumulated

3,922

6,669

4,775

11,444

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Statement of Cash Flows for the year ended 30 June 2018

$ ’000

Cash flows from operating activitiesReceipts:Rates and annual chargesUser charges and feesInvestment and interest revenue receivedGrants and contributionsBonds, deposits and retention amounts receivedOtherPayments:Employee benefits and on-costsMaterials and contractsBorrowing costsOtherNet cash provided (or used in) operating activities

Cash flows from investing activitiesReceipts:Sale of investment securitiesSale of real estate assetsSale of infrastructure, property, plant and equipmentDeferred debtors receiptsPayments:Purchase of investment securitiesPurchase of infrastructure, property, plant and equipmentPurchase of real estate assetsDeferred debtors and advances madeContributions paid to joint ventures and associatesNet cash provided (or used in) investing activities

Cash flows from financing activitiesReceipts:NilPayments:Repayment of borrowings and advancesNet cash flow provided (used in) financing activities

Net increase/(decrease) in cash and cash equivalents

Plus: cash and cash equivalents – beginning of yearPlus: cash transferred on amalgamation of councils

Cash and cash equivalents – end of the year

Additional Information:plus: Investments on hand – end of year

Total cash, cash equivalents and investments

13/5/16to 30/6/17

6b

–

819

3

–

14a

59,253

25,664

(22,901)

(890) (890)

30,956

25,664

6,282

(41,284)

(46,532)

(1,107) (1,107)

(17,201) (14,892)

Actual

(6,213)

(8,885)

56,620

(214) (480) (1)

2,763

62,016

(67,967)

(32,395)

19,273

650 863 1,042 649

39,784

29,911

1,276

15,192 7,734

(11,430) (14,841)

(248)

Actual

(5,355)

434

(130)

3,917

21,157 1

17,880

41,447

910 81

(9,252)

9,254

18,701

(188)

14b

Original

budget unaudited

Notes

15,411

21,366

(3,825)

(858)

25,191

(858)

–

(15,100)

39,670

–

14a

–

– –

210

(10) (32,055)

(58)

(21,668)

1

2,943

2018

4,841

– 21,799 1,170

(5,935)

(12,088)

2,654

2018

19,382

1,537 8,030

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Notes to the Financial Statements for the year ended 30 June 2018

Contents of the notes accompanying the financial statements

Details

Basis of preparationCouncil functions/activities – financial informationCouncil functions/activities – component descriptionsIncome from continuing operationsExpenses from continuing operationsGains or losses from the disposal of assetsCash and cash equivalent assetsInvestmentsRestricted cash, cash equivalents and investments – detailsReceivablesInventories and other assetsInfrastructure, property, plant and equipmentExternally restricted infrastructure, property, plant and equipmentInfrastructure, property, plant and equipment – current year impairmentsIntangible assetsPayables and borrowingsProvisions

Statement of cash flows – additional informationInterests in other entitiesCommitments for expenditureContingencies and other liabilities/assets not recognisedFinancial risk managementMaterial budget variationsFair value measurementRelated party transactionsStatement of developer contributionsFinancial result and financial position by fundStatement of performance measures – consolidated resultsStatement of performance measures – by fund

Additional council disclosures (unaudited)

Statement of performance measures – consolidated results (graphs)Council information and contact details 92

40

68

8185

50

44

51

79

39

78

9(a)9(b)

25

10

29

3031

34

1014151724

29

41

Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

20

12

6619

5815

18

13

51

5962

36

39

1716

Note

11

Page

12(a)

32(b)

6(b)

5

33

6(a)

4

6(c)

9(c)

24(b)

14

23

21

8824(a)

22

87

24(c) 90

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page 9


Murray River Council Notes to the Financial Statements for the year ended 30 June 2018 Note 1. Basis of preparation

page 10

These financial statements were authorised for issue by Council on 16/10/2018. Council has the power to amend and reissue these financial statements. The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Australian Accounting Interpretations, the Local Government Act 1993 (NSW) and Regulations, and the Local Government Code of Accounting Practice and Financial Reporting. Council is a not for-profit entity for the purpose of preparing these financial statements. The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars. Full dollars have been used in Note 21 Related party disclosures in relation to the disclosure of specific related party transactions. Unless otherwise indicated, all amounts disclosed in the financial statements are actual amounts. Specific budgetary amounts have been included for comparative analysis (to actuals) in the following reports and notes: Income statement Statement of cash flows Note 19 – Material budget variations and are clearly marked . (a) New and amended standards adopted by Council AASB 124 Related Party Disclosures was adopted for the first time in the financial statements. The impact adopting this standard has had no impact on the reporting of Council’s financial position or performance. Note 21 has now been included in these financial statements for related parties and incorporates all required related party disclosures. (b) Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities and certain classes of infrastructure, property, plant and equipment and investment property. (c) Significant accounting estimates and judgements The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Council's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Council and that are believed to be reasonable under the circumstances.


Murray River Council Notes to the Financial Statements for the year ended 30 June 2018 Note 1. Basis of preparation (continued)

page 11

Critical accounting estimates and assumptions Council makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: (i) estimated fair values of infrastructure, property, plant and equipment – refer Note 9, (ii) estimated tip remediation provisions – refer Note 12, (iii) employee benefit provisions – refer Note 12. Significant judgements in applying the Council's accounting policies (iv) Impairment of receivables Council has made a significant judgement about the impairment of a number of its receivables in Note 7. Monies and other assets received by Council (a) The Consolidated Fund In accordance with the provisions of Section 409(1) of the Local Government Act 1993 (NSW), all money and other assets received by Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund. Cash and other assets of the following entities have been included as part of the Consolidated Fund: General purpose operations Water service Sewerage service Moama Recreation Reserve Committee Moama Lions Units Mathoura Retirement Village Committee (b) The Trust Fund In accordance with the provisions of Section 411 of the Local Government Act 1993 (NSW) (as amended), a separate and distinct Trust Fund is maintained to account for all money and other assets received by the Council in trust which must be applied only for the purposes of, or in accordance with the trusts relating to those monies. Trust monies and other assets subject to Council’s control have been included in these reports. The following Trust monies and other assets are held by Council but are not considered to be under the control of Council and therefore are excluded from these financial statements: Payments received from unknown entities Land Sale and Acquisition funds required to be paid into Trust Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.



page 12

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to the taxation authority is included with other receivables or payables in the Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which that are recoverable from, or payable to the taxation authority are presented as operating cash flows. New accounting standards and interpretations issued not yet effective Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period and which have not been applied. Council has not applied any pronouncements before their operative date in the current reporting period beginning 1 July 2017. Council’s assessment of the impact of the new standards and interpretations is set out below. Effective for annual reporting periods beginning on or after 1 July 2018 • AASB 9 Financial Instruments AASB9 replaces AASB 139 Financial Instruments: Recognition and Measurement, and addresses the classification, measurement and disclosure of financial assets and liabilities. The standard also introduces a new impairment model that requires impairment provisions to be based on expected credit losses, rather than incurred credit losses. The standard is not expected to have a material impact on Council’s future financial statements.

Effective for annual reporting periods beginning on or after 1 July 2019

• AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and

AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

AASB 15 will replace AASB 118 Revenue, AASB 111 Construction Contracts and a number of Interpretations. AASB 2016-8 provides Australian requirements and guidance for not-for-profit entities in applying AASB 9 and AASB 15, and AASB 1058 will replace AASB 1004 Contributions. Together they contain a comprehensive and robust framework for the recognition, measurement and disclosure of income including revenue from contracts with customers. Based on assessments to date, these standards are not expected to have a material impact on Council’s overall financial position, financial performance or cash flows. • AASB 16 Leases Under this standard a lease liability will initially be measured at the present value of the lease payments to be made over the lease term. A corresponding right-of-use asset will be recognised over the lease term. Operating lease expenses will decrease and interest and depreciation expense will increase. Council is currently a party to leases that are not recognised in the Statement of Financial Position.



page 13

It is likely that some of these leases will need to be included in the Statement of Financial Position when this standard comes into effect.

A lease liability will initially be measured at the present value of the lease payments to be made over the lease term. A corresponding right-of-use asset will also be recognised over the lease term.




Note 2(a). Council functions/activities – financial information

Income from continuing operations

Income, expenses and assets have been directly attributed to the following functions/activities.Details of these functions/activities are provided in Note 2(b).

Expenses from continuing operations

Operating result from continuing operations

$ ’000

Total assets held (current and non-

current) Functions/activities

13/5/16to 30/6/17

Grants included in income from continuing

operations

13/5/16to 30/6/17 20182018

13/5/16to 30/6/17 2018 2018 2017

– 531 1

738

1,037

2,163

3,167 3,667

12,612 680

3,067

912 1,009

2,999 420

1,285

4,789 2,967

44

Public order and safetyHealth

5,387 256

16,632 AdministrationGovernance

3,498 73 330

327 1,207

2,889 1,199 1,407

23

Recreation and culture

Community Services and EducationHousing and Community amenities

Sewerage servicesWater supplies

709

Economic affairs

Mining, manufacturing and construction 440 Transport and communication 9,727

3,386 (2,885)

485

Environment

1,825 1,794 5,414

2,901

1,843

14,811

1,381

947

2,329 4,304 3,786

9,996 3,365

3,235 837

6,411 10,221 (530)

2018 13/5/16

to 30/6/17

– 96 38,993

40,720 120 15,173 – (912) –

(726) 499

(4,378) (958) 293

375 (436)

– 2,652

357

489 30,231

68 (2,830)

638

352 3,790

(307) (347)

(1,085) (182)

44 72

1,003

(951)

(2,753) 47,626 42

802 77

600 45,756 28,884

– 487,629

– 497,761

9,779

1,297

(44)

(240) (458)

34 27

305 2,820

38,006 9,011 900 928

290 45,628

11,592

8,070 9,826

48,823 8,169

50,892 95 84

1,110 (1,087)

6,669 45,619

3,732 3,010

13,656 22,003

(4,815) 19 89

– 44

32,968

– 19,006 21,908 8,191

725,854

(298)

–

736,954

421 377 (44)

8,807

– – –

67,622 40,042 46,711

21,908 –

Share of gains / (losses) in association and joint ventures

Total functions and activities

General purpose income 19,006 –

X6A0T

page 14




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

Administration

Public order and safety

Health

Environment

Community Services and Education

Housing and Community amenities

Includes administration and education; social protection (welfare); migrant, Aboriginal and other communityservices and administration (excluding accommodation – as it is covered under ‘housing and communityamenities’); youth services; aged and disabled persons services; children’s’ services, including family day care;child care; and other family and children services.

Includes public cemeteries; public conveniences; street lighting; town planning; other community amenities,including housing development and accommodation for families and children, aged persons, disabled persons,migrants and Indigenous persons.

Includes noxious plants and insect/vermin control; other environmental protection; solid waste management,including domestic waste; other waste management; other sanitation; and garbage, street cleaning, drainageand stormwater management.

Includes 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.

Includes corporate support and other support services, engineering works, and any Council policy compliance.

Includes Council’s fire and emergency services levy, fire protection, emergency services, beach control,enforcement of regulations and animal control.

Includes immunisation, food control, health centres etc.

X7A0T

page 15




Note 2(b). Council functions/activities – component descriptions (continued)

Details relating to the Council’s functions/activities as reported in Note 2(a) are as follows:

Water supplies

Sewerage services

Recreation and culture

Mining, manufacturing and construction

Transport and communication

Economic affairs

Share of gains / (losses) in association and joint ventures

General purpose income

Includes public libraries; museums; art galleries; community centres and halls, including public halls andperforming arts venues; sporting grounds and venues; swimming pools; parks; gardens; lakes; and othersporting, recreational and cultural services.

Includes camping areas and caravan parks; tourism and area promotion; industrial development promotion; realestate development and other business undertakings.

Includes Central Murray Regional Library and Central Murray County Council

Urban local, urban regional, includes sealed and unsealed roads, bridges, footpaths, parking areas, andaerodromes.

Includes building control, quarries and pits, mineral resources, and abattoirs.

Includes the provision and distribution of water to the towns within the boundary of the Council.

Treatment of wastewater to the towns within the boundaries of the Council.

Includes rates and annual charges; non capital general purpose grants; interest on investments and interest onoverdue rates and charges.

page 16




Note 3. Income from continuing operations

$ ’000

(a) Rates and annual charges

Ordinary ratesResidentialFarmlandBusinessTotal ordinary rates

Special ratesLevee bankTotal special rates

Annual charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611)Domestic waste management servicesStormwater management servicesWater supply servicesSewerage servicesWaste management services (non-domestic)Total annual charges

TOTAL RATES AND ANNUAL CHARGES

Council has used 2016 year valuations provided by the NSW Valuer General in calculating its rates.

Accounting policy for rates and annual chargesRates, annual charges, grants and contributions (including developer contributions) are recognised as revenuewhen the Council obtains control over the assets comprising these receipts. Developer contributions may onlybe expended for the purposes for which the contributions were required, but the Council may apply contributionsaccording to the priorities established in work schedules.

Control over assets acquired from rates and annual charges is obtained at the commencement of the ratingyear as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.

15,808

108

15,522

127 974 120

2,575 2,334 2,341

5,388 3,190

813

3,402

844 5,399

9,645

2018 13/5/16

to 30/6/17

42 – –

42

5,877 6,375

2,490

9,391

127

1,056

X8A5T

X8A18T

page 17




Note 3. Income from continuing operations (continued)

$ ’000

(b) User charges and fees

Specific user charges (per s.502 – specific ‘actual use’ charges)Domestic waste management servicesWater supply servicesSewerage servicesWaste management services (non-domestic)Total specific user charges

Other user charges and fees(i) Fees and charges – statutory and regulatory functions (per s.608)Building regulationInspection servicesPrivate works – section 67Regulatory/ statutory feesRegistration feesSection 149 certificates (EPA Act)Section 603 certificatesTapping feesTown planningHealth controlAnimal controlTotal fees and charges – statutory/regulatory

(ii) Fees and charges – other (incl. general user charges (per s.608))Aged careCaravan parkCemeteriesGravel pitsLeaseback fees – Council vehiclesLibrary and art galleryRMS (formerly RTA) charges (state roads not controlled by Council)Swimming centresTourismWater connection feesPublic hallsSewer connection feesCommunity services / retirement villagesRecreational grounds / swimming pools / librariesSpecial meter readingSewerage consumption / trade wasteOtherTotal fees and charges – other

TOTAL USER CHARGES AND FEESAccounting policy for user charges and feesUser charges and fees are recognised as revenue when the service has been provided.

18 16

2,063

92

14

939

59 75

130

45

–

42

314

370

–

–

20

26

7,139

93

143

1

81 56 41 44

1,406

2,340

92

–

7

42

2,570 3,093

49

157

2,783

7,777

13

20

537

2018 13/5/16

to 30/6/17

5

1,786

10

12 22 51

1

35

12

71

2

21

43

21

270

2,344

55

1

1,401

687

635

388

1,721 1,750

12

3 307

121

65

162

27

X8A6T

page 18





$ ’000

(c) Interest and investment revenue (including losses)

Interest – Overdue rates and annual charges (incl. special purpose rates) – Cash and investments – Deferred debtors – OtherDividend incomeAmortisation of premiums and discounts – Interest free (and interest reduced) loans providedTOTAL INTEREST AND INVESTMENT REVENUE

Interest revenue is attributable to:Unrestricted investments/financial assets:Overdue rates and annual charges (general fund)General Council cash and investmentsRestricted investments/funds – external:Development contributions – Section 7.11 – Section 64Water fund operationsSewerage fund operationsTotal interest and investment revenue recognised

Accounting policy for interest and investment revenueInterest income is recognised using the effective interest rate at the date that interest is earned.

38 16

13/5/16to 30/6/17

21

11

105

–

1,102

41

1,603

873 68

193

1,603 1,652

157

22

95 1,425

491

2018

78 1

1,652

59

3

52

3

1,453

203

X8A7T

page 19





$ ’000

(d) Other revenues

Rental income – other council propertiesLegal fees recovery – rates and charges (extra charges)Commissions and agency feesDiesel rebateSales – generalInsurance claims / rebatesWater – meter rents / sundry incomeEnvironment incentivesRural transaction centreSewer – sundry incomeOtherTOTAL OTHER REVENUE

Accounting policy for other revenueCouncil recognises revenue when the amount of revenue can be reliably measured, it is probable that futureeconomic benefits will flow to the Council and specific criteria have been met for each of the Council’s activitiesas described below. Council bases its estimates on historical results, taking into consideration the type ofcustomer, the type of transaction and the specifics of each arrangement.

Parking fees and fines are recognised as revenue when the service has been provided, or when the penalty hasbeen applied, whichever occurs first.

Rental income is accounted for on a straight-line basis over the lease term.

Miscellaneous sales are recognised when physical possession has transferred to the customer which isdeemed to be the point of transfer of risks and rewards.

Other income is recorded when the payment is due, the value of the payment is notified, or the payment isreceived, whichever occurs first.

254 37

13 – 6

1,147

563

273

17

245

–

Notes

3 1

– –

2018 13/5/16

to 30/6/17

20

1,400

361 4

15

22

636 49

28

X8A8T

page 20





$ ’000

(e) Grants

General purpose (untied)Current year allocationFinancial assistance – general componentFinancial assistance – local roads componentPayment in advance – future year allocationFinancial assistance – general componentFinancial assistance – local roads componentOtherPensioners’ rates subsidies – general componentTotal general purposeSpecific purposePensioners’ rates subsidies: – Water – Sewerage – Domestic waste managementWater suppliesSewerage servicesAged careBushfire and emergency servicesEconomic developmentEmployment and training programsHeritage and culturalLibraryLibrary – special projectsLIRS subsidyNoxious weedsPublic hallsRecreation and cultureStreet lightingTransport (roads to recovery)Transport (other roads and bridges funding)PlanningEnergy fuel rebate schemeTourismWaste managementRiver accessFlood risk management plansYouth servicesStronger communities fundOtherTotal specific purposeTotal grantsGrant revenue is attributable to:– Commonwealth funding– State funding– Other funding

–

–

13/5/16to 30/6/17

–

–

94

53

Capital Operating

46

11,592

227

–

–

57 103

2018

41

–

2,746

104

33

102

2,499

78

266

232

–

5

722

6,974

4

722

5

923 –

–

–

722

–

23,358

82

23,358

3,425

– 6,000

–

– 2

232

–

–

927

20

16

15,461

–

–

–

49

81 –

909

38

12,007

–

–

– 89 13

58 –

290

–

–

– – –

42

4,834 2,554

8,191

33

43

2,625

–

–

44

–

Operating

–

– –

–

37

2018

59

– –

2,720

–

11

–

–

–

– –

–

9,610

20

–

401

2

–

–

–

–

–

16

– –

–

–

13/5/16to 30/6/17

–

50

–

13

–

–

–

25

9,000

4,743

9,610

9,610

–

1,474 1,409 – –

1,436

–

–

–

55

–

52 –

Capital

883

–

17

–

84

– –

–

694

12,934

16

–

12,934

11,766

–

722 1

9,585

X8A17T

page 21





$ ’000

(f) Contributions

Developer contributions:(s7.4 & s7.11 – EP&A Act, s64 of the LGA):

Cash contributionsS 7.11 – contributions towards amenities/servicesS 7.12 – fixed development consent leviesS 64 – water supply contributionsS 64 – sewerage service contributionsTotal developer contributions – cashTotal developer contributions

Other contributions:Cash contributionsCommunity servicesDrainageRecreation and cultureRoads and bridgesRMS contributions (regional roads, block grant)TourismWater supplies (excl. section 64 contributions)RMS contributions (flood / storm damage)StaffS355 committeesBike paths / pedestrian accessEngineering developmentDrummusterAged careLibrariesTransport (road safety officer)Waste managementPlant and motor vehiclesDonationsTotal other contributions – cashTotal other contributionsTotal contributions

TOTAL GRANTS AND CONTRIBUTIONSAccounting policy for contributionsControl over grants and contributions is normally obtained upon their receipt (or acquittal) and is valued at thefair value of the granted or contributed asset at the date of transfer.

Where grants or contributions recognised as revenues during the financial year were obtained on condition thatthey be expended in a particular manner or used over a particular period and those conditions wereun-discharged at reporting date, the unused grant or contribution is disclosed above.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite servicehas not been provided at reporting date.

60

23

2,339

4,511

–

–

–

–

–

2,156

–

–

–

–

Operating

22

17,260

383

Capital

307

Notes

–

4,326 3,318

Operating

4,326

–

– 9 – 41

13/5/16to 30/6/17

4,511 2,418

–

1,198

2018

–

–

382

1,198

4,040

109

51 – 27

27,869 13,116

–

– 31

4 –

– 27 24

165

– – – 10 – –

–

12

18

260 223 900

126 417

13/5/16to 30/6/17

–

–

6

6

–

3,258

74 4 – 75 –

–

8

–

– –

–

7

–

4,326 4,511 2,418 2,308

– –

– –

–

–

–

–

–

–

2018

–

Capital

– –

–

900

3,425 –

878

45

–

–

500

– –

30

75 66

2,308 3,506

X8A9T

page 22





$ ’000

(g) Unspent grants and contributions

Certain grants and contributions are obtained by Council on conditionthat they be spent in a specified manner:

Capital grantsUnexpended at the close of the previous reporting period

Add: capital grants recognised in the current period but not yet spent

Less: capital grants recognised in a previous reporting period now spent

Unexpended and held as restricted assets (capital grants)

ContributionsUnexpended at the close of the previous reporting period

Add: contributions recognised in the current period but not yet spent

Less: contributions recognised in a previous reporting period now spent

Unexpended and held as restricted assets (contributions)

(900) (677)

1,881

2,046

1,173

1,672

1,198

14,504

842

13/5/16to 30/6/17

(2,785)

1,583

14,504

1,881

(401)

2018

13,233

12,892

page 23




Note 4. Expenses from continuing operations

$ ’000

(a) Employee benefits and on-costs

Salaries and wagesEmployee termination costsTravel expensesEmployee leave entitlements (ELE)SuperannuationSuperannuation – defined benefit plansWorkers’ compensation insuranceFringe benefit tax (FBT)

Payroll taxTraining costs (other than salaries and wages)Protective clothingOtherTotal employee costsLess: capitalised costsTOTAL EMPLOYEE COSTS EXPENSED

Number of ‘full-time equivalent’ employees (FTE) at year endNumber of ‘full-time equivalent’ employees (FTE) at year end (incl. vacancies)

Accounting policy for employee benefits and on-costsEmployee benefit expenses are recorded when the service has been provided by the employee.

Retirement benefit obligationsAll employees of the Council are entitled to benefits on retirement, disability or death. Council contributes tovarious defined benefit plans and defined contribution plans on behalf of its employees.

Superannuation plansContributions to defined contribution plans are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the future paymentsis available.

Council participates in a Defined Benefit Plan under the Local Government Superannuation Scheme, however,when sufficient information to account for the plan as a defined benefit is not available and therefore Councilaccounts for its obligations to defined benefit plans on the same basis as its obligations to defined contributionplans, i.e. as an expense when it becomes payable – refer to Note 12 for more information.

211

221

890

172

371

15,006

565

168

714

13/5/16to 30/6/17

231

16,658

173

11,622

64

15,010

511 2,065

156

20 191 30

28

(1,652)

10,886

(2,170)

990

297

58

17,180

357 754

685

2018

1,921

161

X8A11T

X8A19T

page 24




Note 4. Expenses from continuing operations (continued)

$ ’000

(b) Borrowing costs

(i) Interest bearing liability costsInterest on loansTotal interest bearing liability costs expensed

(ii) Other borrowing costsDiscount adjustments relating to movements in provisions (other than ELE) – Remediation liabilities – Other liabilitiesInterest applicable on interest free (and favourable) loans to CouncilTotal other borrowing costsTOTAL BORROWING COSTS EXPENSEDAccounting policy for borrowing costsBorrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time thatis required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

(c) Materials and contracts

Raw materials and consumablesContractor and consultancy costs – Merger Consultants – Planning Consultants – Waste Management Consultants – Waste, Transfer Station & Recycling Collections Contractors – IT Software Licences – IT Cloud Contract – Road & Bridges Contractors – State Road ContractorsAuditors remuneration (2)

Legal expenses: – Legal expenses: planning and development – Legal expenses: debt recovery – Legal expenses: otherOperating leases: – Operating lease rentals: minimum lease payments (1)

TOTAL MATERIALS AND CONTRACTSOperating leasesLeases in which a significant portion of the risks and rewards of ownership arenot transferred to Council as lessee are classified as operating leases. Paymentsmade under operating leases (net of any incentives received from the lessor) arecharged to the income statement on a straight-line basis over the period of the lease.

1. Operating lease payments are attributable to:Photocopiers

–

191 98

–

101

3,617

–

58

–

19

1,853

108

47

–

30

1,810

36

Notes

886

167

94

228

12

55

890

728

47

19

40

93

42

137

19

199

20 29

– 21

–

–

30

9,758 7,551

349

199

307

13/5/16to 30/6/17

43

30

5,783

93

2018

184 – 201 –

X8A12T

X8A13T

page 25





$ ’000

(c) Materials and contracts (continued)

2. Auditor remunerationDuring the year the following fees were paid or payable for services provided by theauditor of Council, related practices and non-related audit firms

Non NSW Auditor-General audit firms:

(i) Audit and other assurance servicesAudit and review of financial statementsRemuneration for audit and other assurance servicesTotal remuneration of non NSW Auditor-General audit firms

Total Auditor remuneration

(d) Depreciation, amortisation and impairment

Depreciation and amortisationPlant and equipmentOffice equipmentFurniture and fittingsLand improvements (depreciable)Infrastructure: – Buildings – non-specialised – Buildings – specialised – Other structures – Roads – Bridges – Footpaths – Stormwater drainage – Water supply network – Sewerage network – Swimming poolsOther assets: – Heritage collections – Library books – OtherReinstatement, rehabilitation and restoration assets: – Tip assets – Quarry assetsTotal gross depreciation and amortisation costsLess: capitalised costsTotal depreciation and amortisation costs

94

1,617

2018

555

9 & 12

43

12,843

9 & 12 20

6,288

13,177

479

701

(580)

59 –

15,228

12

604

1,167

2 19

1,221

– 1

159

1,074

48

94

125

336

(334)

353 6,977

14,648

43

1,167

26

653

141

145

94

37 36 189

13/5/16to 30/6/17

1,228

43

864

2

43

704

1,243

141

12

94

X8A14T

page 26





$ ’000

(d) Depreciation, amortisation and impairment (continued)

Impairment / revaluation decrement of IPP&EInfrastructure: – RoadsTotal IPP&E impairment / revaluation decrement costs / (reversals)

TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT /REVALUATION DECREMENT COSTS EXPENSED

Accounting policy for depreciation, amortisation and impairment expenses

Depreciation and amortisationDepreciation and amortisation are calculated using the straight line method to allocate their cost, net of theirresidual values, over their estimated useful lives. Useful lives are included in Note 9 for IPPE assets andNote 10 for intangible assets.

Impairment of non-financial assetsIntangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisationand are tested annually for impairment, or more frequently if events or changes in circumstances indicate thatthey might be impaired. Other assets are tested for impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount bywhich the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there areseparately identifiable cash inflows that are largely independent of the cash inflows from other assets or groupsof assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possiblereversal of the impairment at each reporting date.

Impairment losses for revalued assets are firstly offset against the amount in the revaluation surplus for theclass of asset, with only the excess to be recognised in the Income Statement.

Impairment of financial assetsCouncil assesses at the end of each reporting period whether there is objective evidence that a financial asset orgroup of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairmentlosses are incurred only if there is objective evidence of impairment as a result of one or more events thatoccurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact onthe estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Notes

–

2018

12,843

644

13/5/16to 30/6/17

644 –

15,292

X8A15T

page 27





$ ’000

(e) Other expenses

AdvertisingBad and doubtful debtsBank chargesCleaningContributions/levies to other levels of government – Emergency services levy (includes FRNSW, SES, and RFS levies) – NSW fire brigade levy – NSW rural fire service levyCouncillor expenses – mayoral feeCouncillor expenses – councillors’ feesCouncillors’ expenses (incl. mayor) – other (excluding fees above)Donations, contributions and assistance to other organisations (Section 356)

– stronger communities fund gantsElection expensesElectricity and heatingFire control expensesInsuranceOffice expenses (including computer expenses)

Postage/freightPrinting and stationeryStreet lightingSubscriptions and publicationsTelephone and communicationsTourism expenses (excluding employee costs)

Valuation feesVehicle registrationsAged care servicesOtherConsultantsOther – administrator paymentOther – lrc members expensesOther – administrator expensesTotal other expensesLess: capitalised costsTOTAL OTHER EXPENSES

Accounting policy for other expensesOther expenses are recorded on an accruals basis as the Council receives the goods or services.

33

186

141

224

131

388

20

13/5/16to 30/6/17

73

21 –

117

Notes

(244)

– 57

381

4

464

625

802

–

66

228

–

–

15

65

475 –

93

133

417

75

712

129

2018

152

–

21

–

10 –

73 13

4,594

4,504

4,744

4,350

728

–

(240)

17

51

242

–

4 50

36

320 419

180

87

220

106

72 47

107

80

–

147

18

63

X8A16T

page 28




Note 5. Gains or losses from the disposal of assets

$ ’000

Property (excl. investment property)Proceeds from disposal – propertyLess: carrying amount of property assets sold/written offNet gain/(loss) on disposal

Plant and equipmentProceeds from disposal – plant and equipmentLess: carrying amount of plant and equipment assets sold/written offNet gain/(loss) on disposal

InfrastructureProceeds from disposal – infrastructureLess: carrying amount of infrastructure assets sold/written offNet gain/(loss) on disposal

Real estate assets held for saleProceeds from disposal – real estate assetsLess: carrying amount of real estate assets sold/written offNet gain/(loss) on disposal

Financial assets (1)

Proceeds from disposal/redemptions/maturities – financial assetsLess: carrying amount of financial assets sold/redeemed/maturedNet gain/(loss) on disposalNET GAIN/(LOSS) ON DISPOSAL OF ASSETSAccounting policy for disposal of assetsThe gain or loss on sale of an asset is determined when control of the asset has irrevocably passed to thebuyer and the asset is derecognised.

Note 6(a). Cash and cash equivalent assets

Cash and cash equivalentsCash on hand and at bankCash-equivalent assets – Deposits at call – Short-term depositsTotal cash and cash equivalents

Accounting policy for cash and cash equivalentsFor Statement of Cash Flow presentation purposes, cash and cash equivalents includes cash on hand; depositsheld at call with financial institutions; other short-term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilitieson the Statement of Financial Position.

8

6

2,763

–

2,763

23,326

(704)

1,138

1,200

39,670

(57)

25,664 –

9

6 (723)

2018

(28)

–

(952) 1,027

Notes

(40) 12

13/5/16to 30/6/17

–

(934)

9

9

(71)

650

631 (743)

143

29,911

15 (66)

(507)

(112)

– (39,670)

(708)

–

(60)

(29,911) –

863

75

X8A0T

X8A10T

page 29




Note 6(b). Investments

$ ’000

Investmentsa. ‘Held to maturity’b. ‘Available for sale’Total investments

TOTAL CASH ASSETS, CASHEQUIVALENTS AND INVESTMENTS

Held to maturity investmentsLong term depositsTotal

Available for sale financial assetsUnlisted equity securitiesTotal

Accounting policy for investments

ClassificationCouncil classifies its financial assets in the following categories: financial assets at fair value through profit orloss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. Theclassification depends on the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition and, in the case of assets classified as held-to-maturity,re-evaluates this designation at each reporting date.

(a) Held to maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturities that Council’s management has the positive intention and ability to hold to maturity. Assets in thiscategory are measured at amortised cost.

(b) Available for sale financial assetsAvailable-for-sale financial assets are non-derivatives that are either designated in this category or not classifiedin any of the other categories. Investments are designated as available-for-sale if they do not have fixedmaturities and fixed or determinable payments and management intends to hold them for the medium to longterm. Assets in this category are held at fair value with changes in fair value taken to other comprehensiveincome.

Recognition and de-recognition Regular purchases and sales of financial assets are recognised on trade-date: the date on which Councilcommits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costsfor all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value throughprofit or loss are initially recognised at fair value and transaction costs are expensed in the income statement.Investments are derecognised when the rights to receive cash flows from the financial assets have expired orhave been transferred and Council has transferred substantially all the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised inequity are included in the income statement as gains and losses from investment securities.

Impairment of available for sale investmentsIn the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fairvalue of the security below its cost is considered an indicator that the assets are impaired.

2

– 59,251 – 30,954

– –

2

2 56,618

30,954

30,954

2

Non-current

–

2

Current

2

–

59,251

–

59,251

20172018

–

2 – 2 –

Non-current

62,014

2018

30,954

2 2

Current

– 59,251

2017

–

X8A1T

page 30




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

$ ’000

Total cash, cash equivalentsand investments

attributable to:External restrictions (refer below)Internal restrictions (refer below)Unrestricted

$ ’000

Details of restrictions

External restrictions – included in liabilitiesSpecific purpose unexpended loans – generalExternal restrictions – included in liabilities

External restrictions – otherDeveloper contributions – generalDeveloper contributions – water fundDeveloper contributions – sewer fundSpecific purpose unexpended grantsWater suppliesSewerage servicesDomestic waste managementSpecial levies – land and water managementOther – hacc busExternal restrictions – otherTotal external restrictions

2017

2

2

2017

473 264

6,851 1,103

Non-current

31,669

31,671 30,453 30,903

768

–

768

–

2017

2,930 22,019

800

14,504 6,429

86 84

2

1,298

1,061

135 135

Non-current

56,618

12,892

6,753 24,042

31,221

524

768

635

7,856

31,219

2

2

768

–

62,014

2018

2

6,226

56,618

2018Current

Notes 2018

–

Current

62,014

X8A20T

page 31




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

$ ’000

Internal restrictionsPlant and vehicle replacementInfrastructure replacementEmployees leave entitlementCarry over worksDeposits, retentions and bondsStaff/other housingWaste managementCommunity hubCommunity master planningPrepaid financial assistance grant (fag)Town improvementsCemetery improvementsSand/gravel pit restorationsBarham boardwalkParks, halls and reservesOffice equipmentTown planningStormwater draingeOther flood damage grantRecreation and cultureRoad safetyRoadsRetirement villageOther – investment projectsLevee bankInsurance claimsIndustrial developmentHallsFinancial assistance grantElectionEconomicCemeteryCaravan parkBuildingsInvestment recoupmentOtherTotal internal restrictions

TOTAL RESTRICTIONS 55,263

2,176

163

3,908

296 2,772

114 4,099

105 296

1,947

283 365

3,212

1,465 3,867

20172018

79

142

53,690

24,042 22,019

37

318

234 46

10 547

1,162

234

Notes

611 754

4,238

81

57

30

150

198

1,714

454

1,947

303

9 31

30

61

–

1,433

61

337 219 204 163

163 126

217

150

611 723

183

30 30 –

156

31 615 487

84 85

659 66

249 249 47 84 17 37

page 32




Note 7. Receivables

$ ’000

PurposeRates and annual chargesInterest and extra chargesUser charges and feesContributions to worksAccrued revenues – Interest on investments – Other income accrualsDeferred debtorsGovernment grants and subsidiesLoans to non-profit organisationsNet GST receivableOther debtorsTotal

Less: provision for impairmentRates and annual chargesOther debtorsTotal provision for impairment – receivables

TOTAL NET RECEIVABLES

Externally restricted receivablesWater supply – Rates and availability charges – OtherSewerage services – Rates and availability charges – OtherDomestic waste managementTotal external restrictionsUnrestricted receivablesTOTAL NET RECEIVABLES

Movement in provision for impairment of receivablesBalance at the beginning of the yearBalance at the end of the year

–

–

153

1,280

6,002 6,571

13/5/16to 30/6/17

– 720

713

82

417

(123)

153

1,354 4,722

126

701

713

–

–

153

–

–

32

387

219

601 81

55

6,002

650

– 223 367 –

1,623 93

(123) (30)

2018

–

6,694

(30)

713

1,226

(30)

–

743

Non-current

– –

–

(88)

–

317 –

1,213 – –

–

–

–

–

6,125

724

(88) (30)

Non-current Current

5,217

2018

387

– 101

153

161 –

– 271

62 –

– 191

128

(35) –

875

387 6,571

122

1,791 483

39

(35)

–

–

290

289

237 767

1,556

Notes

– 197

–

Current 2017

–

X8A2T

page 33




Note 7. Receivables (continued)

Accounting policy for receivables

Recognition and measurementLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin an active market. They are included in current assets, except for those with maturities greater than 12 monthsafter the reporting date which are classified as non-current assets. Loans and receivables are included inother receivables (Note 8) and receivables (Note 7) in the Statement of Financial Position. Receivables arerecognised initially at fair value and subsequently measured at amortised cost using the effective interestmethod, less provision for impairment. Receivables are generally due for settlement within 30 days.

Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

ImpairmentFor loans and receivables the amount of the loss is measured as the difference between the asset’s carryingamount and the present value of estimated future cash flows (excluding future credit losses that have not beenincurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset isreduced and the amount of the loss is recognised in profit or loss.

Collectability of receivables is reviewed on an on-going basis. Debts that are known to be uncollectible are writtenoff by reducing the carrying amount directly. An allowance account (provision for impairment of receivables) isused when there is objective evidence that Council will not be able to collect all amounts due according to theoriginal terms of the receivables.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financialreorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicatorsthat the receivable is impaired. When a receivable for which an impairment allowance had been recognisedbecomes uncollectable in a subsequent period it is written off against the allowance account. Subsequentrecoveries of amounts previously written off are credited against other expenses in the Income statement.

Note 8. Inventories and other assets

$ ’000

(a) Inventories

(i) Inventories at costReal estate for resale (refer below)Stores and materialsLoose toolsTotal inventories at cost

TOTAL INVENTORIES

(b) Other assets

PrepaymentsTOTAL OTHER ASSETS

Externally restricted assetsThere are no restrictions applicable to the above assets.

– 485 461

396 3,122 3,743

Current 2017

392 –

Non-current 2018

–

3,518

330

4,135 131

330

485

Non-current

155

2018 2017

–

461

71

3,518

–

4,135

– –

– 61 71

Current

61

Notes

X8A3T

page 34




Note 8. Inventories and other assets (continued)

$ ’000

(i) Other disclosures

(a) Details for real estate developmentResidentialIndustrial/commercialTotal real estate for resale(Valued at the lower of cost and net realisable value)

Represented by:Acquisition costsDevelopment costsTotal costsTotal real estate for resale

Movements:Real estate assets at beginning of the year – Purchases and other costs – Transfers in from (out to) Note 9 – WDV of sales (expense)Total real estate for resale

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

Real estate for resale

Accounting policy

Raw materials and stores, work in progress and finished goodsRaw materials and stores, work in progress and finished goods are stated at the lower of cost and netrealisable value. Costs are assigned to individual items of inventory on basis of weighted average costs. Costsof purchased inventory are determined after deducting rebates and discounts. Net realisable value is theestimated selling price in the ordinary course of business less the estimated costs of completion and theestimated costs necessary to make the sale.

Inventory held for distributionInventory held for distribution is held at cost, adjusted where applicable for any loss of service potential.

Land held for resale/capitalisation of borrowing costsLand held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specificidentification and includes the cost of acquisition, and development and borrowing costs during development.When development is completed borrowing costs and other holding charges are expensed as incurred.

Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if theexpenditure on the acquisition and development of the land had not been made. Borrowing costs incurred whileactive development is interrupted for extended periods are recognised as expenses.

3,630 330

– 3,122

2018

330

2017Notes

1,502

3,122

–

3,743

330

330 3,122 3,743

(1)

330 –

3,122

(934) (507) 5

–

3,743

330

3,743

Non-current

2,161

–

2018

3,743 330

330

330

–

330

–

2,743

3,122

(113)

1,703

3,743

330

2,516 –

–

1,703

– 330

– 330

2,743

2017

330

–

1,620

Current Non-current Current

– 113

page 35




Note 9(a). Infrastructure, property, plant and equipment

Asset class

$ ’000

Plant and equipment 18,547 8,753 9,794 1,504 – (743) (1,243) – – – 18,880 9,568 9,312 Office equipment 1,784 831 953 644 – – (189) – – – 2,375 967 1,408 Furniture and fittings 823 469 354 26 – – (37) – – – 849 506 343 Land: – Operational land 7,689 – 7,689 5 – (40) – 82 (299) 538 7,975 – 7,975 – Community land 8,410 – 8,410 – – – – 31 – 2,080 10,521 – 10,521 – Land under roads (post 30/6/08) 19 – 19 – – – – – – – 19 – 19 Land improvements – depreciable 8,803 4,620 4,183 – – – (125) – – – 8,803 4,745 4,058 Infrastructure: – Buildings – non-specialised 13,996 4,739 9,257 50 – – (336) – – – 14,046 5,075 8,971 – Buildings – specialised 45,248 22,915 22,333 85 – – (1,167) – – – 45,333 24,082 21,251 – Other structures 15,368 2,990 12,378 688 – (52) (479) – – – 15,975 3,440 12,535 – Roads 313,833 101,444 212,389 9,614 – – (6,288) – – – 323,448 107,733 215,715 – Bridges 68,536 20,717 47,819 467 – – (701) – – – 69,003 21,418 47,585 – Footpaths 9,954 2,945 7,009 249 – (2) (159) – – – 10,192 3,095 7,097 – Bulk earthworks (non-depreciable) 203,924 – 203,924 533 – – – – – – 204,457 – 204,457 – Stormwater drainage 46,768 14,747 32,021 53 – – (555) – – – 46,820 15,301 31,519 – Water supply network 56,089 17,180 38,909 1,203 – – (1,074) – – 817 58,470 18,615 39,855 – Sewerage network 55,724 18,291 37,433 85 – – (704) – – 786 56,979 19,379 37,600 – Swimming pools 551 522 29 – – – (12) – – – 550 533 17 Other assets: – Heritage collections 558 278 280 35 – – (12) – – – 593 290 303 – Library books 24 17 7 – – – (2) – – – 24 19 5 – Other 487 90 397 111 – – (48) – – – 598 138 460 Reinstatement, rehabilitation and restoration assets (refer Note 12): – Tip assets 1,724 697 1,027 – (38) – (26) – – – 1,685 722 963 – Quarry assets 426 238 188 18 (106) (12) (20) – – – 237 169 68 TOTAL INFRASTRUCTURE,PROPERTY, PLANT AND EQUIP.

Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).

Accumulated depreciation

and impairment

Gross carrying amount


Depreciation expense

as at 30/6/2017Tfrs

from/(to) real estate

assets(Note 8)

Additionsrenewals

Carrying value

of disposals

Revaluation decrements

to equity (ARR)

Revaluation incrementsto equity (ARR)

Net carrying amount

Reinstatementcosts forimpairedassets

as at 30/6/2018

Net carrying amount

Asset movements during the reporting period

Accumulated depreciation

and impairment

662,037 113 (299) 4,221 897,832 235,795 879,285 222,483 656,802 15,370 (849) (144) (13,177)

X9A0T

X9A1T

page 36




Note 9(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipment

Infrastructure, property, plant and equipment are held at fair value. Independent valuations are performed atleast every five years, however the carrying amount of assets is assessed at each reporting date to confirm that it is not materially different from current fair value.

Water and sewerage network assets are indexed at each reporting period in accordance with the RatesReference Manual issued by Crown Lands and Water (CLAW).

Increases in the carrying amounts arising on revaluation are credited to the asset revaluation reserve. To theextent that the increase reverses a decrease previously recognising profit or loss relating to that asset class, theincrease is first recognised as profit or loss. Decreases that reverse previous increases of assets in the sameclass are first charged against revaluation reserves directly in equity to the extent of the remaining reserveattributable to the class; all other decreases are charged to the Income Statement.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,only when it is probable that future economic benefits associated with the item will flow to Council and the costof the item can be measured reliably. All other repairs and maintenance are charged to the income statementduring the financial period in which they are incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocatetheir cost, net of their residual values, over their estimated useful lives as follows:

Plant and equipment Years Other equipment YearsOffice equipment 4 to 20 Playground equipment 5 to 80Office furniture 10 to 50 Benches, seats etc. 10 to 20 Computer equipment 4 to 5Vehicles 2 to 10 BuildingsHeavy plant/road making equipment 5 to 20 Buildings: masonry 50 to 100 Other plant and equipment 5 to 20 Buildings: other 10 to 50

Water and sewer assets Stormwater assetsDams and reservoirs 30 to 100 Drains 80 to 100 Bores 20 to 40 Culverts 50 to 80 Reticulation pipes: PVC 70 to 80 Flood control structures 80 to 100 Reticulation pipes: other 25 to 75 Pumps and telemetry 5 to 50

Transportation assets Other infrastructure assetsSealed roads: surface 15 to 40 Bulk earthworks InfiniteSealed roads: structure 15 to 100 Swimming pools 50Unsealed roads 10 to 60 Other open space/recreational assets 5 to 50Bridge: concrete 60 to 100 Other infrastructure 5 to 50Bridge: other 50 to 100Road pavements 60Kerb, gutter and footpaths 40 to 100

page 37




Note 9(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipment

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are includedin the Income statement.

Land under roadsLand under roads is land under roadways and road reserves including land under footpaths, nature strips andmedian strips.

Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance withAASB 1051 Land Under Roads.

Crown reservesCrown Reserves under Council’s care and control are recognised as assets of the Council. While ownership ofthe reserves remains with the Crown, Council retains operational control of the reserves and is responsible fortheir maintenance and use in accordance with the specific purposes to which the reserves are dedicated.Improvements on Crown Reserves are also recorded as assets, while maintenance costs incurred by Counciland revenues relating to the reserves are recognised within Council’s Income Statement.

Rural Fire Service assetsUnder section 119 of the Rural Fire Services Act 1997 (NSW) , “all fire fighting equipment purchased orconstructed wholly or from money to the credit of the Fund is to be vested in the council of the area for or onbehalf of which the fire fighting equipment has been purchased or constructed”.

Until such time as discussions on this matter have concluded and the legislation changed, Council will continue toaccount for these assets as it has been doing in previous years, which is to incorporate the Building assets, theirvalues and depreciation charges within these financial statements. Council will not recognise rural fire serviceassets including plant and vehicles in these financial statements.

page 38




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

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

$ ’000

Impairment losses recognised in the Income Statement:

– Road assets as a result of floodingTotal impairment losses

IMPAIRMENT OF ASSETS – GAINS/(LOSSES) in P/L

–

52 34 18

76

38,145

247

159

114,729 35,712 79,017

526

198

–

–

74

37,433

–

55,724 18,291

600

49

–

TOTAL RESTRICTED IPP&E

(644)


Accumulated depn. and

impairment

Net carrying amount

616

57

126 397 284 1,203

58,470

76 76

Total DWM

Other structures

9

595

174 –

–

110

523 1,487

7

Land

– Community land

– Operational land

70

2,517

Sewerage services

Buildings

Plant and equipment

94

Land

181

57

Infrastructure

Other assets

Buildings

56,979

23

7

–

1,076

Domestic waste management

37,600

1,441

12 Water supply

41,919

23 23 Plant and equipment

1,123 –

39,855

712

38,909 17,241

915

$ ’000

Total sewerage services

Class of asset

Infrastructure


Plant and equipment Land


Total water supply

Buildings

2018

57

18,615

50

–

61,660 19,741

111

2

501

38,834

53

19,379 19,472

– – –

76

59

58,306

712

18,314 56,459

174

1,123

– 616 915

4(d)

– 23

57,136

–

2018

1,134 157 977

56,089 17,180

75 16

39,895

– (644)

–

2017Gross

carrying amount

Accumulated depn. and

impairment

Net carrying amount

159

(644)

45

2017Notes

121,453 39,497 81,956

–

X10A11T

X10A12T

page 39




Note 10. Intangible assets

$ ’000

Intangible assets represent identifiable non-monetary assets without physical substance.

Intangible assets are as follows:

Opening values:Gross book value (1/7)

Net book value – opening balance

Movements for the year– Other capitalised costs (Revaluation)

Closing values:Gross book value (30/6)

TOTAL INTANGIBLE ASSETS – NET BOOK VALUE 1

1. The net book value of intangible assets represent:

– Water access licences

Accounting policy for intangible assetsWater LicencesCouncil holds a number of high and general security water licences which it recognises as an intangible asset.The water licences are individually tradable on the open water licence sales market.The licences were obtained principally through land acquisitions where the water licence was attached to the land.The water licences are now individually separated from the land and can be sold on a permanent or temporary transfer basis.At present Council only trades the water entitlement associated with the water licences on a temporary basis.Income received from the sales of water entitlements are disclosed as other revenue.The licences are recorded in Council's accounts at fair value based on market valuations obtained from the open water licence sales market at balance date.No amortisation costs are applicable, as high and general security water licences have an indefinite life. Water licences purchased are initially recorded at cost and are valued at least every year based on market evidence. Water licences are tested for impairment annually based on market sales evidence. If the recoverable amount is less than carrying amount the carrying amount is reduced to recoverable amount and the reduction is recognised as impairment loss.Increases in the carrying amounts arising on revaluation are credited to the asset revaluation reserve. To the extent that the increase reverses a decrease previously recognising profit or loss relating to that asset class, the increase is first recognised as profit or loss. Decreases that reverse previous increases of assets in the same class are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the class; all other decreases are charged to the Income Statement.

853

1,492

639 639 639

2017

639

1,492

639

639 1,492 639

2018

639

–

1,492

X10A1T

X10A2T

page 40




Note 11. Payables and borrowings

$ ’000

PayablesGoods and services – operating expenditureAccrued expenses: – Borrowings – Salaries and wages – Other expenditure accrualsSecurity bonds, deposits and retentionsOtherTotal payables

Income received in advancePayments received in advanceTotal income received in advance

BorrowingsLoans – secured 1

Total borrowings

TOTAL PAYABLES AND BORROWINGS

(a) Payables and borrowings relating to restricted assets

Externally restricted assetsWaterSewer

TOTAL PAYABLES AND BORROWINGS

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 18.

1,622

2,484

37 82 Total payables and borrowings relating to unrestricted assets

2,484

2,385

4,076 4,863 4,755

2,329

245

–

1,659

37

– Payables and borrowings relating to externally restricted assets

2,872 – –

384 384 –

– –

13

2,484

166

–

2,694

–

–

–

Current

99

820

2,484

1,659 797

–

Current

820

3,994

2017

88

99

75 37

Non-current 2017

1,659

Current

82

4,076

1,659

95 7

2018

797

42

259

108

522

– –

–

259

– –

230 –

2

3,807

99 –

Non-current Non-current

108

4,863

359

2

2018

Total payables and borrowings relating to restricted assets

–

Non-current Current

–

X10A3T

page 41




Note 11. Payables and borrowings (continued)

$ ’000

(b) Changes in liabilities arising from financing activities

$ ’000

(c) Financing arrangements

(i) Unrestricted access was available at balance date to the following lines of credit:

Bank overdraft facilities (1)

Credit cards/purchase cardsTotal financing arrangements

Drawn facilities as at balance date:– Credit cards/purchase cardsTotal drawn financing arrangements

Undrawn facilities as at balance date:– Bank overdraft facilities– Credit cards/purchase cardsTotal undrawn financing arrangements

1. The bank overdraft facility may be drawn at any time and may be terminated by the bank without notice.

818

650

650

133

25 – –

168

2018

2017

5/16to 30/6/17

– – –

650

25

818 168

Non-cash changes

2017

2018

2,456 –

2018

– 2,456 –

758

783

Closingbalance

as at 30/6/18

108

650

Openingbalance

as at 1/7/17Cash flows Acquisition Fair value

changes

TOTAL 3,304 (848)

Class of borrowings

(848) Loans – secured 3,304

Othernon-cash

movements

page 42




Note 11. Payables and borrowings (continued)

Accounting policy for payables and borrowings

PayablesThese amounts represent liabilities for goods and services provided to the Council prior to the end of financialyear that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

BorrowingsBorrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequentlymeasured at amortised cost. Any difference between the proceeds (net of transaction costs) and theredemption amount is recognised in the income statement over the period of the borrowings using the effectiveinterest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of theloan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee isdeferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of thefacility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over theperiod of the facility to which it relates.

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contractis discharged, cancelled or expired. The difference between the carrying amount of a financial liability that hasbeen extinguished or transferred to another party and the consideration paid, including any non-cash assetstransferred or liabilities assumed, is recognised in other income or finance cost.

Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement ofthe liability for at least 12 months after the reporting date.

Finance leasesLeases of property, plant and equipment where Council, as lessee, has substantially all the risks and rewardsof ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at thefair value of the leased property or, if lower, the present value of the minimum lease payments. Thecorresponding rental obligations, net of finance charges, are included in other short-term and long-termpayables. Each lease payment is allocated between the liability and finance cost. The finance cost is chargedto the income statement over the lease period so as to produce a constant periodic rate of interest on theremaining balance of the liability for each period.

The property, plant and equipment acquired under finance leases is depreciated over the asset's useful life orover the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that Councilwill obtain ownership at the end of the lease term.

page 43




Note 12. Provisions

$ ’000

ProvisionsEmployee benefits:Annual leaveLong service leave

Asset remediation/restoration:Asset remediation/restoration (future works)

Sub-total – asset remediation/restoration

TOTAL PROVISIONS

(a) Provisions relating to restricted assetsThere are internal restricted assets applicable to the above provisions. Employee benefits 45% of total liability has been internally restricted. There are internally restricted amounts for Landfills and Gravel Pit restorations.

Internally restricted assetsEmployee BenefitsGravel Pit RestorationsWaste Management - Landfills

TOTAL PROVISIONS

$ ’000

(b) Current provisions not anticipated to be settled within the next twelve months

The following provisions, even though classified as current, are notexpected to be settled in the next 12 months.

Provisions – employees benefits

234

Non-current

Provisions relating to internally restricted assets

2,116

2,287

1,947

2,305 207

612

3,827

1,476

1,278

Total provisions relating to restricted assets

2017

–

Current

–

3,763

Non-current

–

–

– –

2018

2018

234

Non-current Current 2017

–

– 1,059

3,827 1,508 1,266

2,741

2018

Total provisions relating to unrestricted assets

1,706

2,793

1,706 2,116

1,266

–

2,793 –

–

–

1,947 – –

–

970

3,763

560

2,741

1,508 1,086

1,278 1,059

2017

1,266

Current

1,508

1,522

Non-current

230 –

Current

X10A4T

page 44




Note 12. Provisions (continued)

$ ’000

(c) Description of and movements in provisions

At beginning of yearAdditional provisionsAmounts used (payments)

At beginning of yearAdditional provisionsAmounts used (payments)

At beginning of yearChanges to provision:– Revised costsUnwinding of discount

At beginning of yearChanges to provision:– Revised costsUnwinding of discountTotal other provisions at end of year –

Total other provisions at end of year

20 20

–

1,350

1,059

– 1,278 – –

–

1,278

Other (enter details here...)

Other provisions

Asset remediation

(92)

1,350

(92)

– –

(12)

1,267

ELE provisions

–

1,522 –

(878) – –

–

Total

1,571

(238)

–

(1,079)

12 3,571

(1,595)

1,476

4,057

2018 Other (enter details here...)


–

438 1,133

2018

19

(1,085)

–

(195)

–

Other provisions

1,522 –

Self-insurance

Long service leave

–

–

– –

475 (516)

2,535

19

Total

–

–

–

1,059

Self-insurance

2,494

2,292 –

3,970

1,508



–

ELE on-costs

4,057

1,033

Total Sick leave

(238)

2,535 –

– –

– – – 1,278 1,278

–

Annual leaveOther

employee benefits

ELE provisions

Total ELE provisions at end of year

Annual leave Sick leave Long service leave

ELE on-costs

Other employee

benefits Total 2017

2017

Total ELE provisions at end of year

Asset remediation


page 45





Nature and purpose of non-employee benefit provisions

Asset remediationCouncil has a legal/public obligation to make, restore, rehabilitate and reinstate the council landfills, sand and gravel pits.

Accounting policy for provisionsProvisions are recognised when Council has a present legal or constructive obligation as a result of past events,it is probable that an outflow of resources will be required to settle the obligation, and the amount has beenreliably estimated.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement isdetermined by considering the class of obligations as a whole. A provision is recognised even if the likelihoodof an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability. Theincrease in the provision due to the passage of time is recognised as interest expense.

Employee benefits

Short-term obligationsLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to be wholly settledwithin 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligationsThe liability for long service leave and annual leave that is not expected to be wholly settled within 12 monthsafter the end of the period in which the employees render the related service is recognised in the provision foremployee benefits and measured as the present value of expected future payments to be made in respect ofservices provided by employees up to the end of the reporting period using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee departures, andperiods of service. Expected future payments are discounted using market yields at the end of the reportingperiod on national government bonds with terms to maturity and currency that match, as closely as possible,the estimated future cash outflows.

The obligations are presented as current liabilities in the Statement of Financial Position if the Council doesnot have an unconditional right to defer settlement for at least 12 months after the reporting date, regardless ofwhen the actual settlement is expected to occur.

page 46





Provisions for close-down and restoration, and environmental clean-up costs – tips and quarries

RestorationClose down and restoration costs include the dismantling and demolition of infrastructure and the removal ofresidual materials and remediation of disturbed areas. Estimated close down and restoration costs are providedfor in the accounting period when the obligation arising from the related disturbance occurs, whether this occursduring the development or during the operation phase, based on the net present value of estimated future costs.

Provisions for close down and restoration costs do not include any additional obligations which are expected toarise from future disturbance. The costs are estimated on the basis of a closure plan. The cost estimates are calculated annually during the life of the operation to reflect known developments, eg updated cost estimatesand revisions to the estimated lives of operations, and are subject to formal review at regular intervals

RehabilitationWhere rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure,provision is made for the estimated outstanding continuous rehabilitation work at each reporting date and thecost is charged to the Income Statement.

Provision is made for the estimated present value of the costs of environmental clean up obligations outstandingat the reporting date. These costs are charged to the Income Statement. Movements in the environmental cleanup provisions are presented as an operating cost, except for the unwinding of the discount which is shown as a borrowing cost.

Remediation procedures generally commence soon after the time the damage, remediation process and estimated remediation costs become known, but may continue for many years depending on the nature of the disturbance and the remediation techniques.

As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary inresponse to many factors including changes to the relevant legal requirements, the emergence of newrestoration techniques or experience at other locations. The expected timing of expenditure can also change, forexample in response to changes in quarry reserves or production rates. As a result there could be significantadjustments to the provision for close down and restoration and environmental clean up, which would affectfuture financial results.

Other movements in the provisions for close down and restoration costs, including those resulting from newdisturbance, updated cost estimates, changes to the estimated lives of operations and revisions to discountrates are capitalised within property, plant and equipment. These costs are then depreciated over the lives of theassets to which they relate.

Close down and restoration costs are a normal consequence of tip and quarry operations, and the majority ofclose down and restoration expenditure is incurred at the end of the life of the operations. Although the ultimatecost to be incurred is uncertain, Council estimates the respective costs based on feasibility and engineeringstudies using current restoration standards and techniques.

Self-insurance

Council does not self insure.

page 47





Defined Benefit Superannuation Disclosure

Council participates in an employer-sponsored Defined Benefit Superannuation Scheme that is a multi-employerplan.

(a) Funding arrangements, including methodology to determine rate of contributions and any minimum funding requirements.

Pooled Employers are required to pay standard employer contributions and additional lump sumcontributions to the Fund.

The standard employer contributions were determined using the new entrant rate method under which acontribution rate sufficient to fund the total benefits over the working life-time of a typical new entrant iscalculated. The current standard employer contribution rates are:

Division B 1.9 times employee contributionsDivision C 2.5% salaryDivision D 1.64 times employee contributions

The additional lump sum contributions for each Pooled Employer is a share of the total additionalcontributions of $40.0 million per annum from 1 July 2017 for 4 years to 30 June 2021, apportioned accordingto each employer's share of the accrued liabilities as at 30 June 2017. The additional lump sum contributionsare used to fund the deficit of assets to accrued liabilities as at 30 June 2017.

The adequacy of contributions is assessed at each triennial actuarial investigation and monitored annuallybetween triennials.

(b) Extent to which Council may be liable to plan for other entities' obligations under the terms and conditions of the multi-employer plan.

As stated above, each sponsoring employer is exposed to the actuarial risks associated with current andformer employees of other sponsoring employers and hence shares in the associated gains and losses.

However, there is no relief under the Fund's trust deed for employers to walk away from their defined benefitobligations. Under limited circumstances, an employer may withdraw from the plan when there are no activemembers, on full payment of outstanding additional contributions. There is no provision for allocation of anysurplus which may be present at the date of withdrawal of the entity.

(c) Description of any agreed allocation of a deficit or surplus on:

(i) wind up of the plan There are no specific contributions under the Fund's trust deed dealing with deficits or surplus on wind-up.

(ii) entity's withdrawal from the plan There is no provision for allocation of any surplus which may be present at the date of withdrawal of an employer.

page 48





Defined Benefit Superannuation Disclosure (continued)

(d) Further information relating to reasons for accounting for the pooled employer fund as defined contribution plan:

(i) the fact the plan is a defined benefit plan

Council confirms that the plan is a defined benefit plan.

(ii) why sufficient information is not available to enable Council to account for the plan as a defined benefit plan.

1. Assets are not segregated within the sub-group according to the employees of each sponsoring employer;2. The contribution rates have been the same for all the sponsoring employers and have not varied for each

employer according to the experience relating to the employees of that employer;3. Benefits for employees of all sponsoring employers are determined according to the same formulae

and without regard to the sponsoring employer; and4. The same actuarial assumptions are currently used in respect of the employees of each sponsoring employer.

Given the factors set out above, each sponsoring employer is exposed to the actuarial risks associated withcurrent and former employees of other sponsring employers and hence shares in the associated gains and losses (to the extent that they are not borne by the members). As such we do not believe that there issufficient reliable information to allow each sponsoring employer to account for its proportionate share of the defined benefit obligation, sub-group assets and costs associated with the sub-group in the same way as it would for a single employer sponsored defined benefit plan.

(iii) the expected contribution to the plan for the next annual reporting period

The expected contributions by the Council to the Fund for the next annual reporting period are $230,695.

(iv) information about any deficit or surplus in the plan that may affect the amount of future contributions, including the basis used to

The estimated employer reserves financial position for the Pooled Employers at 30 June 2018 is:Employer reserves only* $M Asset CoverageAssets 1817.8Past Service Liabilities 1,787.5 101.7%Vested Benefits 1,778.0 102.2%*excluding member accounts and reserves in both assets and liabilities.

The key economic long term assumptions used to calculate the present value of accrued benefits are:Investment return 6.0% per annumSalary inflation* 3.5% per annumIncrease in CPI 2.5% per annum* Plus promotional increases

The contribution requirements may vary from the current rates if the overall sub-group experienceis not in line with the actuarial assumptions in determining the funding program; however, anyadjustment to the funding program would be the same for all sponsoring employers in the PooledEmployers group.

(v) an indication of the level of participation of the entity in the plan compared with other

Council's participation in the Scheme compared with other entities is about 0.27% based on the Council'scurrent level of annual additional contributions against total contributions. The last valuation of the Fundwas performed by Mr Richard Boyfield, FIAA on 12 December 2017, relating to the period ending 30 June 2017.

page 49




Note 13. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

Nature and purpose of reserves

Infrastructure, property, plant and equipment revaluation reserveThe infrastructure, property, plant and equipment revaluation reserve is used to record increments /decrements of non-current asset values due to their revaluation.

X10A5T

page 50




Note 14. Statement of cash flows – additional information

$ ’000

(a) Reconciliation of cash assets

Total cash and cash equivalent assetsBalance as per the Statement of Cash Flows

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

Net operating result from Income StatementAdjust for non-cash items:Depreciation and amortisationNet losses/(gains) on disposal of assetsImpairment losses recognition – Investments, Property, Plant and EquipmentAmortisation of premiums, discounts and prior period fair valuations – Interest on all fair value adjusted interest free advances made by Council – Interest exp. on interest-free loans received by Council (previously fair valued)Unwinding of discount rates on reinstatement provisionsShare of net (profits) or losses of associates/joint ventures

+/- Movement in operating assets and liabilities and other cash items:Decrease/(increase) in receivablesDecrease/(increase) in inventoriesDecrease/(increase) in other assetsIncrease/(decrease) in payablesIncrease/(decrease) in accrued interest payableIncrease/(decrease) in other accrued expenses payableIncrease/(decrease) in other liabilitiesIncrease/(decrease) in employee leave entitlementsIncrease/(decrease) in other provisionsNet cash provided from/(used in)operating activities from the Statement of Cash Flows

Note 15. Interests in other entities

$ ’000

AssociatesTotal

6a

(44) 377

13/5/16to 30/6/17

–

19

(3)

Council’s share of net income

(44) (44) (44) 377

25,664 2,763

2017

2,763 25,664

Notes

(238)

178

Council’s share of net assets

421

2017

58

44 20

(3)

19,273

12,843

6,669

–

644

2018

57

2018

(4) (28)

(345)

365 (10)

44

421 2018

267 486

(619)

39,784

157

(92)

(170)

(87)

22,003

(845)

(19)

14,648 704

2,272

42

X10A0T

X10A6T

X10A7T

X10A10T

X10A13T

page 51




Note 15. Interests in other entities (continued)

$ ’000

(a) Controlled entities (subsidiaries) – being entities and operations controlled by Council

Council’s consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with AASB 10 and the accounting policy described in Note 1(c).

Name of operation/entity Principal activity

1. Moama Recreation Reserve Management of a Recreation Reserve (Sub Committee)Perricoota Road Moama

Interests in SubsidiaryCouncil’s interest in Subsidiary

The nature and extent of significant restrictions relating to the SubsidiaryThe Moama Recreation Reserve is a sub committee of Council under s 355 of the Local Government Act..The Committee operates with in a Charter and any other decisions of the Committee are recommendations to the Council.The assets of the committee are Council's assets. Their bank accounts are treated as Internally Restricted Assetsof the Council.

The nature of risks associated with Council’s interests in the SubsidiaryThe Council has ultimate responsibility for the operation of the Recreation Reserve. The sub committee liaises with thevarious users and discusses any areas of concern between the groups.

Other disclosuresThe Council has a representative on the Committee. Council staff also attend the meetings.

Reporting dates of SubsidiaryThe committee completes fininacial reports to financial year end 30 June 2018.The financial position and performance of subsidiaries for the financial year ended 30 June 2018 have been includedin these consolidated financial statements.

Summarised financial information for the Subsidiary

Summarised statement of comprehensive incomeRevenueExpensesProfit for the periodTotal comprehensive income (1)

Summarised statement of financial positionCurrent assetsTotal assetsTotal liabilitiesNet assets (2)

Summarised statement of cash flowsCash flows from operating activitiesNet increase (decrease) in cash and cash equivalents 13 15

15

2018

15

2018100% 100% 100% 100%

2018

13

49

15

2017

(26) 39

2017

13 13

–

49 46

46

2018

46 49 –

Ownership

13/5/16to 30/6/17

41

Voting rights2018

(26)

13/5/16to 30/6/17

2017

page 52





$ ’000



2. Mathoura Retirement Village Management of Units for the AgedMathoura Street, Mathoura


The nature and extent of significant restrictions relating to the SubsidiaryThe Mathoura Retirement Village is a sub committee of Council under s 355 of the Local Government Act..The assets of the committee are Council's assets. Their bank accounts are treated as Internally Restricted Assetsof the Council.

The nature of risks associated with Council’s interests in the SubsidiaryThe Council has ultimate responsibility for the operation of the Retirement Village. The sub committee liaises with thetenants and deals with the ongoing maintenance of the units and the surrounding area.

Other disclosuresThe Council has a representative on the Committee. Council staff assist with administrative issues and capital works.


Non-Current AssetsAll non-current assets are disclosed in Note 10(a).



Summarised statement of financial positionCurrent assetsTotal assetsCurrent liabilitiesTotal liabilities

Net assets (2)

Summarised statement of cash flowsCash flows from operating activitiesNet increase (decrease) in cash and cash equivalents

2018

100% 100%

58

58 44

13/5/16to 30/6/17

2017

100%

(21)

22

2018

116 44

13/5/16to 30/6/17

2018 2017

23

22

63

23

116

2018

36

138

36

94

36

58

Ownership

2018

36

57 (40)

100%

138

Voting rights2017

page 53





$ ’000



3. Moama Lion Community Village Provision of units for the people meeting the criteriaVarious units in Moama


The nature and extent of significant restrictions relating to the SubsidiaryThe Moama Lions is a sub committee of Council under s 355 of the Local Government Act.The assets of the committee are Council's assets. Their bank accounts are treated as Internally Restricted Assetsof the Council.

The nature of risks associated with Council’s interests in the SubsidiaryThe Council has ultimate responsibility for the operation of the Moama Lions units. The sub committee liaises with thetenants and deals with the ongoing maintenance of the units and the surrounding areas.

Other disclosuresThe Council has a representative on the Committee. Council staff assist with administrative issues and capital works.




Summarised statement of financial positionCurrent assetsTotal assets

Current liabilitiesTotal liabilitiesNet assets (2)

Summarised statement of cash flowsCash flows from operating activitiesNet increase (decrease) in cash and cash equivalents

2018

396 167 –

75

75

(97)

(155)

(244)

167

Voting rights2018

13/5/16to 30/6/17

89

2018(155)

(155)

2018

75

13/5/16to 30/6/17

2017408

396

241

396 408

(155)

100% 100%

2018

100%

–

2017 2017Ownership

75

100%

172

page 54





$ ’000


Accounting policy for subsidiariesSubsidiaries are all entities (including structured entities) over which the Council has control. Control isestablished when the Council is exposed to, or has rights to variable returns from its involvement with the entityand has the ability to affect those returns through its power to direct the relevant activities of the entity.

These consolidated financial statements include the financial position and performance of controlled entitiesfrom the date on which control is obtained until the date that control is lost. Intragroup assets, liabilities,equity, income, expenses and cash flows relating to transactions between entities in the consolidated entityhave been eliminated in full for the purpose of these financial statements. Appropriate adjustments have beenmade to a controlled entity’s financial position, performance and cash flows where the accounting policies usedby that entity were different from those adopted by the consolidated entity. All controlled entities have a Junefinancial year end.

(b) Associates

Council has incorporated the following associates into its consolidated financial statements.

(a) Net carrying amounts – Council’s share

Name of entityCentral Murray County CouncilCentral Murray Regional LibraryTotal carrying amounts – material associates

(b) Details

Name of entity Principal activity

Noxious weed control

Regional Library

(c) Relevant interests and fair values

Name of entityCentral Murray County CouncilCentral Murray Regional Library

326 377

business

31%

2017 2017

Quoted Interest in Interest in

12% 33%

51

31% 31% 25%

12% 12%

outputs

Associate

fair value

449 359

1,217 31%1,051

% Net Assets

2018 2018

Central Murray Regional Library Mathoura

Nature of

2017 2018

Measurement

Central Murray County Council

2018 2017

377 421 44

25%

ownership

% Net Assets

12%

Associate

33%

Place of

Moama & Greater Murray Ward

Proportion ofvoting power

relationship method 2018 2017

X10A9T

page 55





$ ’000

(b) Associates (continued)

(d) Summarised financial information for associates

Statement of financial positionCurrent assetsCash and cash equivalentsOther current assetsNon-current assets

Current liabilities

Other current liabilitiesNon-current liabilities

Other non-current liabilitiesNet assets

Reconciliation of the carrying amountOpening net assets (1 July)Profit/(loss) for the periodClosing net assets

Council’s share of net assets (%)Council’s share of net assets ($)

Statement of comprehensive incomeIncomeInterest incomeDepreciation and amortisationOther expensesProfit/(loss) for periodTotal comprehensive income

Share of income – Council (%)Profit/(loss) – Council ($)Total comprehensive income – Council ($)

Summarised Statement of cash flowsCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activities

182 12

95 123

10

449

662 970

134 158 110 114 – 28 28

180

Current financial liabilities (excluding trade and other payables and provisions)

9

–

502 431 – 59

2018 2017

346

359

51

10

158

109

8 (37)

31.0% 11.5% 12.3%

90 109

36

(57)

(38)

132 (19) (36) –

(42)

(166)

917 505 8

(101)

(184)

10 13 (51) 13

546

359

1,051 1,217 449 (166)

31.0% 31.0%

8

12.3%

Non-current financial liabilities (excluding trade and other payables and provisions) – –

2018 2017

514

(48) 135

(51) (57)

Central Murray County Council

Central Murray Regional Library

250 (184) 90 109

1,217 1,401

– – – 1

(894)

– (28) (36)

359

(130)

377

90 (184)

(979) (387) (408) (166)

31.0%

1,051 1,217

44 326

821

11.5%

Net increase (decrease) in cash and cash equivalents 168 (67) 71 80

page 56





(b) Associates (continued)

Accounting policy for associatesInterests in associates are accounted for using the equity method in accordance with AASB128Investments in Associates and Joint Ventures . Under this method, the investment is initially recognised as acost and the carrying amount is increased or decreased to recognise the Council’s share of the profit or lossand other comprehensive income of the investee after the date of acquisition.

If the Council’s share of losses of an associate equals or exceeds its interest in the associate, the Councildiscontinues recognising its share of further losses.

The Council’s share in the associate’s gains or losses arising from transactions between itself and itsassociate are eliminated.

Adjustments are made to the associate’s accounting policies where they are different from those of theCouncil for the purpose of the consolidated financial statements.

page 57




Note 16. Commitments for expenditure

$ ’000

(a) Capital commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:

Property, plant and equipmentBuildingsPlant and equipmentRoadworksWater and Sewerage BridgesSkate ParkTotal commitments

These expenditures are payable as follows:Within the next yearLater than one year and not later than 5 yearsTotal payable

Sources for funding of capital commitments:Unrestricted general fundsFuture grants and contributionsUnexpended grantsExternally restricted reservesInternally restricted reservesTotal sources of funding

Details of capital commitmentsContracts that the Council has entered into for Cap ex projects budgeted for.

(b) 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 yearLater than one year and not later than 5 yearsTotal non-cancellable operating lease commitments

b. Non-cancellable operating leases include the following assets:Office Photocopiers - Council can elect to re-lease, return or acquire the equipment on expiry of the lease

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.

–

–

71

–

– 1,306

1,251 6,190

25 48

–

–

–

–

23 23

48

317 6,190

979

6,190

2,200

381

5,383 807

–

–

1,556

–

2018

870 –

454

2017

–

2,612

–

–

454

–

X10A14T

page 58




Note 17. Contingencies and other liabilities/assets not recognised

The following assets and liabilities do not qualify for recognition in the Statement of Financial Position, but their knowledge and disclosure is considered relevant to the users of Council’s financial report.

LIABILITIES NOT RECOGNISED:

1. Guarantees

(i) Defined benefit superannuation contribution plans

The plan is a defined benefit plan. However, each sponsoring employer is exposed to the actuarial risks associatedwith current and former employees of other sposoring employers and hence shares in the associated gains and losses (to the extent that they are not bourne by members). As such, there is not sufficient reliable information to allow each sponsoring employer to account for its proportionate share of the defined benefit obligation, sub-group assets and costs associated with the sub-group in the same way as it would for a single employer sponsored defined benefit plan.

The amount of Coucil employer contribitions to the defined benefit section of the Fund and recognised as an expense and disclosed as part of the superannuation expenses in Note 4 (a) for year ending 30 June 2018 was $371,414.

The last valuation of the Fund was performed by the Actuary, Mr Richard Boyfield, FIAA on 12 December 2017, relating to the period ending 30 June 2017.

Council's expected contributions to the Fund for the next annual reporting period is $230,695.

The estimated employer reserves financial position for the Pooled Employer at 30 June 2018 is

Employer reserve only* $ millions Asset CoverageAssets $1,817.8Past Service Liabilities $1,787.5 101.7%Vested Benefits $1,778.0 102.2%

* excluding member accounts and reserves in both assets and liabilitiesThe key economic long term assumptions used to calculate the present value of accrued benefits are:

Investment return 6.0% per annumSalary inflation* 3.5% per annumIncrease in CPI 2.5% per annum

* Plus promotional increases

The contribution requirements may vary from the current rates if the overall sub-group experience is not in line withthe actuarial assumptions in determing the funding program, however any adjustments to the funding program wouldbe the sam for all sponsoring employers in the Pooled Employer group.

Please note that the estimated employer reserves financial position above is a preliminary calculation and once allthe relevant information has been received by the funds Actuary, the 2018 trennial review will be completed aroundDecember 2018.

Counci's additional lump sum contribution is around 0.27% of the total additional lump sum contributions for all Pooled Employers (of $40m each year from 1 July to 30 June 2021) provides an indication of the level of participation of Council compared with the other employers in the Pooled Employer sub-group.

(ii) Statewide Limited

Council is a member of Statewide Mutual, a mutual pool scheme providing liability insurance to local government.

Membership includes the potential to share in either the net assets or liabilities of the fund depending on its pastperformance. Council’s share of the net assets or liabilities reflects Council’s contributions to the pool and the resultof insurance claims within each of the fund years.

The future realisation and finalisation of claims incurred but not reported to 30/6 this year may result in futureliabilities or benefits as a result of past events that Council will be required to fund or share in respectively.

X10A17T

page 59




Note 17. Contingencies and other liabilities/assets not recognised (continued)

LIABILITIES NOT RECOGNISED (continued):

1. Guarantees (continued)

(iii) StateCover Limited

Council is a member of StateCover Mutual Limited and holds a partly paid share in the entity.

StateCover is a company providing workers compensation insurance cover to the NSW local government industryand specifically Council.

Council has a contingent liability to contribute further equity in the event of the erosion of the company’s capitalbase as a result of the company’s past performance and/or claims experience or as a result of any increasedprudential requirements from APRA.

These future equity contributions would be required to maintain the company’s minimum level of net assets inaccordance with its licence requirements.

(iv) Other guarantees

Council has provided no other guarantees other than those listed above.

2. Other liabilities

(i) Third party claims

The Council is involved from time to time in various claims incidental to the ordinary course of business includingclaims for damages relating to its services.

Council believes that it is appropriately covered for all claims through its insurance coverage and does not expectany material liabilities to eventuate.

(ii) S7.11 plans

Council levies section 7.4/7.11 contributions upon various development across the Council area through therequired contributions plans.

As part of these plans, Council has received funds for which it will be required to expend the monies inaccordance with those plans.

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

These future expenses do not yet qualify as liabilities as of the reporting date, but represent Council’s intention tospend funds in the manner and timing set out in those plans.

page 60




Note 17. Contingencies and other liabilities/assets not recognised (continued)

LIABILITIES NOT RECOGNISED (continued):

2. Other liabilities (continued)

(iii) Native Title Claims

A significant area within the Murray River Council area is subject to a native title claim by the Yorta YortaAboriginal Community.

At present, Council is unable to assess or determine the full financial and operational effects should the claimbe succesful.

(iv) Potential land acquisitions due to planning restrictions imposed by Council

Council has classified a number of privately owned land parcels as local open space or bushland.

As a result, where notified in writing by the various owners, Council will be required to purchase these land parcels.

At reporting date, reliable estimates as to the value of any potential liability (and subsequent land asset) from suchpotential acquisitions has not been possible.

ASSETS NOT RECOGNISED:

(i) Land under roads

As permitted under AASB 1051, Council has elected not to bring to account land under roads that it owned orcontrolled up to and including 30/6/08.

(ii) Infringement notices/fines

Fines and penalty income, the result of Council issuing infringement notices is followed up and collected bythe Infringement Processing Bureau.

Council’s revenue recognition policy for such income is to account for it as revenue on receipt.

Accordingly, at year end, there is a potential asset due to Council representing issued but unpaid infringementnotices.

Due to the limited information available on the status, value and duration of outstanding notices, Council isunable to determine the value of outstanding income.

(iii) Rural Fire Fighting Assets

Council has title to and is the registered owner of rural fire tankers and associated rural fire fighting equipment.These assets are under the control of the Rural Fire service to enable that Department to provide the bushfireprotection defences set out in their Service Level Agreement with Council, and accordingly have not beenrecognised in these reports.

Based on section 119 of the Rural Fire Services Act 1997 (NSW), “all fire fighting equipment purchased orconstructed wholly or from money to the credit of the Fund is to be vested in the council of the area for or onbehalf of which the fire fighting equipment has been purchased or constructed”.

Buildings that are utilised by the Rural Fire Service are under the care, control and management of the Council.Buildings are therfore recognised in these reports

In accordance with normal Rural Fire Service funding arrangements, Council continues to contribute to the costsof maintenance of this equipment.

page 61




Note 18. Financial risk management

$ ’000

Risk management

Council’s activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity riskand (4) interest rate risk.

The Council’s overall risk management program focuses on the unpredictability of financial markets and seeksto 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 foreigncurrency risk.

Financial risk management is carried out by Council’s finance section under policies approved by the Council.

A comparison by category of the carrying amounts and fair values of Council’s financial assets and financialliabilities recognised in the financial statements is presented below.

Financial assetsCash and cash equivalentsInvestments – ‘Held to maturity’ – ‘Available for sale’ReceivablesTotal financial assets

Financial liabilitiesPayablesLoans/advancesOther financial liabilitiesTotal financial liabilities

Fair value is determined as follows:

– Cash and cash equivalents, receivables, payables – are estimated to be the carrying value that approximates market value.

– Borrowings and held-to-maturity investments – are based upon estimated future cash flows discounted by the current market interest rates applicable to assets and liabilities with similar risk profiles, unless quoted market prices are available.

– Financial assets classified (i) ‘at fair value through profit and loss’ or (ii) ‘available-for-sale’ – are based upon quoted market prices (in active markets for identical investments) at the reporting date or independent valuation.

35,899

26,115 2,763 25,664

30,954 2

6,522 384

2018 2017

2,456

Fair value 2017

259 6,727

384 3,304

3,807 2,872

2 6,715

2

68,974 63,335 68,974

59,251

Carrying value

25,664

6,560 259

2,456

6,522

2018

63,335

3,304 3,807

6,715 6,958

3,039

2 6,958

30,954

X10A15T

page 62




Note 18. Financial risk management (continued)

$ ’000

Council’s objective is to maximise its return on cash and investments whilst maintaining an adequate level ofliquidity 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 MinisterialInvestment Order 625. This policy is regularly reviewed by Council and its staff and a monthly Investment reportis provided to Council setting out the make-up and performance of the portfolio as required by LocalGovernment regulations.

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 the 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 purchasinginvestments 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.

2018Possible impact of a 1% movement in interest rates

13/5/16to 30/6/17Possible impact of a 1% movement in interest rates

Increase of values/rates

592

Decrease of values/ratesProfit

555

Equity 592 592

555 555

Equity 592

555

Profit

page 63





$ ’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 Councilmay not be repaid in full.

Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.It also encourages ratepayers to pay their rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the landrelating to the debts – that is, the land can be sold to recover the debt. Council is also able to charge intereston 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 and carries out credit checks on mostnon-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

A profile of Council’s receivables credit risk at balance date follows:

(i) Ageing of receivables – %Current (not yet overdue)Overdue

(ii) Ageing of receivables – valueRates and annual charges< 1 year overdue1 – 2 years overdue2 – 5 years overdue> 5 years overdue

Other receivablesCurrent0 – 30 days overdue31 – 60 days overdue61 – 90 days overdue> 91 days overdue

2018 2017

Rates and

100%15%100%

receivables

2018 2017

0%

receivables

100%17%

100%

Rates and

691

charges annual

34

211

Other

257

154 1,556

808

1,226

663

863

annual

83% 0%

53

Other

322

71

20172018

85%

100%

charges

124

100%

160

4,725

31 4

4,596

5,555

212

5,642

page 64





$ ’000

(c) Liquidity risk

Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on handto meet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining anadequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended and overdraft facilities utilised as required.

Borrowings are also subject to interest rate risk if not fixed for full time of the borrowings. All Council's currentborrowing the interest rates are fixed for the full term of the borrowing.

The contractual undiscounted cash outflows (ie. principal and interest) of Council’s payables and borrowingsare set out in the maturity table below:

$ ’000

Trade/other payablesLoans and advancesTotal financial liabilities

Trade/other payablesLoans and advancesTotal financial liabilities

Loan agreement breachesLoan repayments are paid on a monthly and quarterly basis and some repayments can be made early to coincidewith creditor payments.

Weighted

2,784

3,772

522 -

values

988 442

- 2,334

522

maturity ≤ 1 Yearpayable in:1 – 5 Years > 5 Years

to noSubject

6,567

- 147 147

ActualcashTotal

2,334 6,636

3,807 2,760

-

outflows

2,872

6,263

3,807

1,723

3,304

3,285 0.00%4.49%

interest rateaverage

2,456

2018

6,176

1,723

2017

carrying

890 4,175

- 442

88 -

2,872 3,764

88

0.00%4.39%

page 65




Note 19. Material budget variations

$ ’000

While the Income Statement included in this General Purpose Financial Report must disclose the originalbudget adopted by Council, the Local Government Act 1993 requires Council to review its financial budgeton a quarterly basis, so that it is able to manage the various variations between actuals versus budget thatinvariably occur throughout the year.

This note sets out the details of material variations between Council’s original budget and its actualresults for the year as per the Income Statement – even though such variations may have been adjusted forduring 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

$ ’000

REVENUESRates and annual charges

User charges and feesSewer consumption increased due to dry climatic conditions $60 K (F)Water consumption increased due to dry climatic conditions $592 K (F)Waste tipping fees increased at Moama $230 K (F)Private Works increased due to State Roads extra work $1,632 K (F)

Interest and investment revenueExtra income due to grant funds on merger received and mostly unspent for the year $220 K (F)Sound liquidity position with up to $60 million invested. Part of this due to unspent grants and works program

Other revenuesAgency commission - additional transactions at agencies $47K (F)Insurance claims / rebates - conservative budget $105 K (F)Rental income - conservative budget $66 K (F)Rental income - sub committees not included in budget $60 K (F)

Operating grants and contributions

Capital grants and contributionsDeveloper Contributions - extra development $709 K (F)Flood Damage Grant - works budgeted but works incomplete $964 K (U)Roadworks Grant - works budgeted but works incomplete $1,078 K (U)

1%

Actual

Council’s original financial budget for 17/18 was adopted by the Council on 27 June 2017 and is not required to be audited.

20182018 2018

F

443

(1,260)

15,522

48%

295

16,499

Budget ---------- Variance* ----------

4,831

1,160 F

(24%)5,300

F

1,147 852

U

761

4,040

17,260

7,139

121

F5%

F

1,603 38%

2,308

15,401

35%

X10A16T

page 66




Note 19. Material budget variations (continued)

$ ’000

EXPENSESEmployee benefits and on-costsRestructure of the organisation for termination payments and lump sum leave payments $596K (U)Extra positions in various areas to cover identified needs in operational areas $540K (U) and reduced contractorsReduced wages booked to capital projects, plus Payroll tax obligationsIncreased private works that is covered by extra income.

Borrowing costs

Materials and contractsCertain contract services undertaken by Council staffThe budget for some "Materials and Contracts" items shown in "Other expenses" items

Depreciation and amortisation

Other expenses

Net losses from disposal of assetsActual asset sales shown.Profit on Industrial land balanced by loss on plant. Infrastructure loss of $60 Kthis relates to the closure of Yanga Pit and Other Structures on the Recreation Reserves.

Joint ventures and associates – net lossesThe loss for associates - Central Murray County Council (predominantly) not shown in Council's budget

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

Cash flows from operating activities

Cash flows from investing activitiesCapital works expenditure - incomplete program $17,103 K (F) particularly grant funded projectsInvestments - extra long term investments made $14,141 K (U) incomplete project funds put to investmentsReal Estate Land Sales $452 K (F) - extra land sales in Moama

Cash flows from financing activities

2018

7,551

(842) U

U191

2018

(41,284) U

(32)

(13%)

(57)

–

3.7%

90.5%

(890)

(21,668) (19,616)

18,701 19,273 F3.1%

U

0%

44

(858)

Budget

11,988

2018

18%

U

188

9,242

U0%

(494) 3,856

12,843

---------- Variance* ----------

(25%)

U

F

U

1,691

(3,018)

(7%)

15,006

Actual

(2%)(3)

(44)

4,350

57

12,001

–

572

page 67




Note 20. 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 – Financial assets and liabilities – Intangible assets

The fair value of assets and liabilities must be estimated in accordance with various accounting standards foreither 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:

2018

Recurring fair value measurements

Financial assetsInvestments– ‘Available for sale’Total financial assets

Infrastructure, property, plant and equipmentPlant & Equipment 30/06/13 &Office Equipmment 30/06/13 &Furniture & Fittings 30/06/13 &Operational LandCommunity LandLand under roads (post 30/06/08) 30/06/09 &Land Improvements depreciableBuildings - non-specialisedBuildings - specialisedOther StructuresRoads 01/07/14 &Bridges 01/07/14 &Footpaths 01/07/14 &Bulk Earthworks 01/07/14 &Stormwater Drainage 30/06/14 &Water Supply NetworkSewerage NetworkSwimming PoolsHeritage CollectionsLibrary BooksOther AssetsTip AssetsQuarry AssetsTotal infrastructure, property, plant and equipment

47,585

of latest

21,251

inputs

30/06/17

30/06/1730/06/15 – 215,715 215,715 30/06/15 – –

–

–

19

30/06/151,408

Fair value measurement hierarchy

9,312 9,312

–

– 7,975 – 7,975

12,535

–

10,521 10,521

observable

19 30/06/18

prices ininputsactive mkts

Level 1 Level 2Significant

8,971

Level 3 Total

valuation

– – 2 2 30/06/18

unobservable

8,971 21,251

– 1,408 343 343

–

2 2

Date

– –

Quoted Significant

204,457

662,037

–

– – 12,535

30/06/17 –

31,519

30/06/15 –

30/06/17

31,519

30/06/15

30/06/15 – – 7,097

30/06/17

– – 30/06/18

47,585

– –

–

30/06/11 – –

–

17

30/06/15 – – 204,457 7,097

– –

30/0615 – –

4,058 4,058

30/06/17 – – 963 963 460 460

303 – – 303 30/06/1730/06/15 – – 5 5

68

–

30/06/17 – – 68

30/06/17

16,946 645,091

– – 39,855 39,855 30/06/17 – – 37,600 37,600 30/06/17 – – 17

X10A8T

X10A19T

page 68




Note 20. Fair value measurement (continued)

$ ’000

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values: (continued)

2018


Intangible AssetsWater Access LicencesTotal discontinued operations

2017


Financial assetsInvestments– ‘Available for sale’Total financial assets

Infrastructure, property, plant and equipmentPlant & Equipment 30/06/13 & 30/06/15Office Equipmment 30/06/13 & 30/06/15Furniture & Fittings 30/06/13 & 30/06/15Operational Land 30/06/13 & 30/06/14Community Land 30/06/11 & 30/06/14Land Improvements non-depreciable 30/06/09 & 30/06//11Land Improvements depreciableBuildings - non-specialisedBuildings - specialisedOther StructuresRoads 01/07/14 & 30/06/15Bridges 01/07/14 & 30/06/15Footpaths 01/07/14 & 30/06/15Bulk Earthworks 01/07/14 & 30/06/15Stormwater Drainage 30/06/14 & 30/06/15Water Supply NetworkSewerage NetworkSwimming PoolsHeritage CollectionsLibrary BooksOther AssetsTip AssetsQuarry AssetsTotal infrastructure, property, plant and equipment

Intangible AssetsWater Access LicencesTotal discontinued operations

(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 fairvalue measurements.

1,084 – 1,084

19

– –

2

1,084

16,946 639,856

13/05/16 1,084 – –

TotalLevel 3

9,257

2 –

1,492

19

– 12,378

30/06/17 –

–

Level 2Significant SignificantDate

47,819

– –

656,802

7,689

953

–

354

30/06/17

prices in observable

– – 9,794 9,794 953

22,333

– – 4,183 4,183

of latest

30/06/17

203,924 203,924 – –

354

– 2

– 7,009 7,009

– 9,257 –

– 7,689

22,333

– – 212,389 212,389 12,378

– –

–

–

30/06/17 – – 188 188

–

– – 32,021 32,021

–

30/06/17 – – 1,027 1,027

30/06/17 29 29

30/06/17

30/06/17

2

– –

8,410

– – 280 280 7

valuation active mkts

Quoted

30/06/17 – – 38,909 38,909 30/06/17 –

8,410 –

7 30/06/17 – – 397 397 30/06/15 –

– 47,819

– 37,433 37,433

–

–

– 30/06/17 –

30/06/18 1,492

Fair value measurement hierarchyLevel 1 Level 2 Level 3 Total

Level 1

inputs

1,492 – – 1,492

Date Quoted Significant Significantof latest prices in observable unobservablevaluation active mkts inputs

–

–

inputs

–

unobservableinputs

page 69


Murray River Council Notes to the Financial Statements for the year ended 30 June 2018 Note 20. Fair value measurement (continued)

page 70

(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: Plant and equipment, office equipment and furniture and fittings Council’s Engineering Department undertook a re-valuation for these assets as at 30 June 2013 for former Murray Shire and 30 June 2015 for former Wakool Shire. Quoted prices in an active market for similar items and asset conditions have been used to revalue these assets. Examples of assets within these classes are as follows:

• Plant & Equipment – graders, trucks, rollers, tractors & motor vehicles • Office Equipment – computers, photocopiers, phone systems etc. • Furniture & Fittings – chairs, desks, cabinets etc.

There has been no change to the valuation process during the year. Operational and Community land Community Land is based on Land Value provided by the Valuer-General for rating purposes for which the Valuer-General provides new valuations every 3 years. The new valuations were applied as at 30 June 2018. Operational Land is valued based on purchase price and valuations provided by commercial valuers. A commercial valuer revalued operational land as at 30 June 2018. There has been no change to the valuation process during the reporting period. Buildings – non-specialised and specialised Buildings Specialised and Non - Specialised are based on cost price and valuations provided by commercial valuers. Council engaged commercial valuers to value all Council’s buildings as at 30 June 2017. Valuation techniques remained the same for the reporting period. Other structures Other Structures comprise of sundry recreational assets, signage, shade sails, irrigation systems, lights, fencing, cemeteries, wharfs, boat ramps, skate parks, pounds, sheds, carports, bus shelters, playground equipment and caravan parks assets etc. Council’s Engineering Department undertook a re-valuation for these assets as at 30 June 2017. Quoted prices in an active market for similar items and condition assessment have been used to revalue these assets There has been no change to the valuation process during the reporting period. Roads, bridges and footpaths Former Wakool Shire’s roads, bridges and footpaths were re-valued on 1st July 2014. The ‘Cost Approach’ using Level 3 inputs was used to value this asset class. Valuations for this asset class were undertaken in-house based on actual costs and assumptions from Council’s Engineering Department with assistance from



page 71

Jeff Roorda & Associates Pty Ltd. No market based evidence (Level 2) inputs are available therefore Level 3 valuation inputs were used for this asset class. Former Murray Shire’s roads, bridges and footpaths were re-valued on 30 June 2015. The valuation technique used was based on suitably qualified Council staff undertaking an internal valuation. The calculation is based on unit costs by assessing recent similar construction projects and an assessment of the useful life and remaining useful life of the assets through a condition assessment process. There has been no change to the valuation process during the reporting period. Drainage infrastructure Assets within this class comprise pits, pipes, pump stations and detention basins. The ‘Cost Approach’ estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certain diameter pipes and prices per pit or similar could be supported from market evidence (Level 2) other inputs (such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair value. Additionally the limitations in the historical records of very long lived assets, there is uncertainty regarding the actual design, specifications and dimensions of some assets. Former Wakool Shire Council’s Engineering Department undertook a re-valuation for these assets as at 30 June 2014 and former Murray Shire’s were undertaken as at 30 June 2015. There has been no change to the valuation process during the reporting period. Water supply network Assets within this class comprise reservoirs, pumping station, treatment plants and reticulation and delivery mains. The ‘Cost Approach’ estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certain diameter pipes and prices per pit or similar may be supported from market evidence (Level 2) other inputs (such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on their final determination of fair value. Additionally due to limitations in the historical records of very long lived assets, there is uncertainty regarding the actual design, specifications and dimensions of some assets. These assets are indexed each year in line with the NSW Reference Rates Manual as published by the Office of Water. Re-valuation was undertaken in-house by the Engineering Department as at 30 June 2017. There has been no change to the valuation process during the reporting period. Sewerage network Assets within this class comprise treatment plants, oxidation ponds, pumping stations and mains. The ‘Cost Approach’ estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certain diameter pipes and prices per pit or similar may be supported from market evidence (Level 2) other inputs (such as estimates of pattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impacted significantly on the final determination of fair



page 72

value. Additionally due to limitations in the historical records of very long lived assets there is uncertainty regarding the actual design, specifications and dimensions of some assets. These assets are indexed each year in line with the NSW Reference Rates Manual as published by the Office of Water. Re-valuation was undertaken in-house by the Engineering Department as at 30 June 2017. There has been no change to the valuation process during the reporting period. Swimming Pools Council’s Engineering Department undertook a re-valuation for these assets as at 30 June 2017. Quoted prices in an active market for similar items and condition assessment have been used to revalue these assets There has been no change to the valuation process during the reporting period. Other Assets Assets within this class comprise library books, heritage collections and reinstatement of tip and quarry assets etc. Council’s Engineering Department undertook a re-valuation for these assets as at 30 June 2017. Quoted prices in an active market for similar items and condition assessment have been used to revalue these assets Tip and Quarry assets were re assessed again as at 30 June 2018. This included a recalculation of tip remediation costs, which have a bearing on the asset valuation. The remediation costs were based on Engineering Department costs to remediate the assets. Financial Assets - Non-current assets classified as "available for sale" Shares Council values the shares held at their original purchase prices as there are no quoted prices in an active market. Intangible Assets Water Access Licences Council values water access licences based on quoted prices in an active market. These were changed for the current year and the previous year due to the recognition of previously unrecognised water rights.





$ ’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.

Opening balance – 13/5/16

Transfers from/(to) another asset classPurchases (GBV)Disposals (WDV)Depreciation and impairment

Closing balance – 30/6/17

Purchases (GBV)Disposals (WDV)Depreciation and impairment



Transfers from/(to) another asset classPurchases (GBV)Disposals (WDV)Depreciation and impairmentRevaluation Increments to Equity


Transfers from/(to) another asset classPurchases (GBV)Depreciation and impairmentRevaluation Increments to Equity


(37) (1,469) (743) –

(1,617)

–

Fittings Total

(954) – (3) (957)

Office

–

–

2,798

–

Furniture

Total

(1,159) (849)

– (1,228)

(76) –

Plant andEquipment

(1,794) (141)

88 3,346

9,312

Improvem.LandLand

31

2,080 –

31,305 8,410

– –

– (1,243) (189)

2,080

–

10,521

– –

–

11,063

Buildings

–

35,830

3,279

(1,167)

–

(11)

Specialised

– –

85

1,408

(2,008)

(1,292) (125)

354

26 1,504 644

–

–

4,183

4,058 21,251

85 –

(145)

– 2,174

953

Equipment and

460

9,643 634 305 10,582

31

2,219 4,411 6,630

22,333 34,926

11,101 9,794

–

– –

(36)

(76)

19,616

(1,373)

– –

(743)

(11) –

Community

383 383

343

Depreciable

8,410

page 73





$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3) (continued)

a. The following tables present the changes in level 3 fair value asset classes. (continued)




Purchases (GBV)Disposals (WDV)Depreciation and impairment





Purchases (GBV)Depreciation and impairmentRevaluation Increments to Equity

Closing balance – 30/6/18 108,974 37,600

108,363

(704)

476,000

–

85 1,341

–

(604)

–

Structures Bridges and

(553)

(353)

11,755

Bulk

(8,781)

3,063

8,224

–

1,838 – 1,117

– (353)

3,063

(3)

6,868 267,622

Footpaths

Other

201,510

267,217

Total

(2) – –

2,414

–

–

(54)

12,378 483,519

–

Drainage

1,835

Roads,

204,457

–

Earthworks

(155) (8,626)

37,433

96,898

(323)

203,924

– 2,924

1,495 405

11,551

Stormwater

(7,627)

–

– 688

9,853 (1,221) (1,167)

10,330 (52)

(479) (7,148) –

– 12,535

Sewerage

(17) 273

32,021

Supply

12,777 (2,992)

Total

270,397

Network

1,603

533

Water

31,147

Network

2,173

(2,333) 817 786

–

38,909

(213)

– 46 14 60

487,389

53 1,203

37,078 28,673

31,519 39,855

(555) (1,074) – –

page 74





$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3) (continued)

a. The following tables present the changes in level 3 fair value asset classes. (continued)


Transfers from/(to) another asset classPurchases (GBV)Disposals (WDV)Depreciation and impairmentRevaluation Increments to EquityReinstatement


Purchases (GBV)Disposals (WDV)Depreciation and impairmentReinstatement


–

OtherSwimming Tip &Pools Quarry Assets

Assets Total

299

– – 7 7 – – (20) (20)

1,366 151 1,816

(2) (59) – (61)

– 188 188

(268) – 377 109 – (92) – (92)

– – 18 146 164 – –

– 29 1,215 703 1,947

(12) – (12) – (12) (46) (62) (120) – – (144) – (144)

– 17 1,031 787 1,835

page 75



page 76

(4). Fair value measurements using significant unobservable inputs (level 3) b. Significant unobservable valuation inputs used (for level 3 asset classes) and their relationship to fair value. The following table summarises the quantitative information relating to the significant unobservable inputs used in deriving the various level 3 asset class fair values. I,PP&E

Class

Fair value

(30/06/18) $’000

Valuation technique/s

Unobservable inputs

Plant and equipment 9,312 Depreciated Replacement Cost

Purchase Price Remaining useful life Residue Value

Office equipment 1,408 Depreciated Replacement Cost


Furniture and fittings 343 Depreciated Replacement Cost


Community land

10,521 Valuer General Rateable Land Values

Land Under Road 19 Valuer General Rateable Land Values

Land improvements – depreciable

4,058 Depreciated Replacement Cost

Gross Replacement Cost Asset Condition Remaining useful Life

Buildings – specialised 21,251 Depreciated Replacement Cost


Other structures 12,535 Depreciated Replacement Cost


Roads, bridges and footpaths 270,397 Depreciated Replacement Cost

Gross Replacement Cost Asset Condition Remaining useful life

Bulk earthworks

204,457 Depreciated Replacement Cost Gross Replacement Cost



page 77

Class

Fair value

(30/06/18) $’000


Unobservable inputs

Stormwater drainage 31,519 Depreciated Replacement Cost


Water supply network 39,855 Depreciated Replacement Cost


Sewerage network 37,600 Depreciated Replacement Cost


Swimming Pools 17 Depreciated Replacement Cost


Tips and Quarries 1,031 Depreciated Replacement Cost


Other Assets 768 Depreciated Replacement Cost


Non-current assets classified as ‘held for sale’

Class

Fair value

(12/5/16) $’000


Unobservable inputs

Shares 2 Original Purchase Price Current value indefinable as not traded in an active share market

c. The valuation process for level 3 fair value measurements Council uses a combination of commercial Valuers and Council’s Engineering Department staff. Valuation Technique – where the Council staff are suitably qualified and are appropriately resourced to undertake the asset valuation, then an internal valuation will be undertaken. The calculation is based on the components unit costs of the asset class as disclosed in Note 20 (3). Recent similar construction projects are assessed to determine the appropriate unit costs. This determines the “Gross carrying Amount”. An assessment of the useful life and remaining useful life of the assets components, through a condition assessment is undertaken. This determines the “Accumulated Depreciation and Impairment” and the “Net Carrying Amount”.



page 78

If suitably qualified staff are not available then the Council will employ contractors to do part or all of the above process. Post Valuation - The Council’s Director Engineering Services overviews the valuation process. (5). Highest and best use All of Council’s non-financial assets are considered to being utilised for their highest and best use.




Note 21. Related party transactions

$ ’000

a. Key management personnel

Key management personnel (KMP) of the Council are those persons having the authority and responsibility for planning, directing and controlling the activities of thecouncil, directly or indirectly.

The aggregate amount of KMP compensation included in the Income Statement is:

Compensation:Short-term benefitsPost-employment benefitsOther long-term benefitsTermination benefitsTotal

b. Other transactions with KMP and their related parties

Council has determined that transactions at arm’s length between KMP and Council as part of Council delivering a public service objective (e.g. access to libraryor Council swimming pool by KMP) will not be disclosed.

396 1,629

20181,080

142 11

2017

–

X11A0T

page 79




Note 21. Related party transactions (continued)

c. Other related party transactions

Nature of the transaction

2018Plant maintenance and servicingCatering services

Provisions Doubtfultransactions balance for doubtful debts

Value of Outstanding Terms and conditions

1 554 - Normal creditor terms - - Ref Actual $ Actual $ Actual $ Actual $

during year (incl. loans and debts expensecommitments) outstanding recognised

2 216 - Normal creditor terms - -

page 80




Note 22. Statement of developer contributions

$ ’000

Under the Environmental Planning and Assessment Act 1979 , Council has significant obligations to provide Section 7.11 (contributions towards provision orimprovement of amenities or services) infrastructure in new release areas.

It is possible that the funds contributed may be less than the cost of this infrastructure, requiring Council to borrow or use general revenue to fund the difference.

SUMMARY OF CONTRIBUTIONS AND LEVIES

DrainageRoadsOpen spaceCommunity facilities

289 –

(32) S64 contributions

Total S7.11 and S7.12 revenue under plans

149

275

(597)

– 900

– S7.11 not under plans

Held as

–

–

21

(9)

Internal

(16) 1

–

Expenditureborrowing

–

restricted(to)/from

during

(103) 690 (17)

(145) 20

–

37

756

1,045

16

1,960

–

–

–

–

–

asset

2 in year

43

–

899

13

Cash

18

1,797

47

997

– –

1

483

1

753

(774)

586

–

earnedContributions

received during the yearInterest

– yearNon-cash

–

7

13 604

Total contributions

S7.11 contributions – under a plan

PURPOSE Openingbalance

– 4 54

8

12 –

195

–

–

–

142 S7.12 levies – under a plan

(136)

417

16

–

– – – – –

–

–

–

Cumulative internal

borrowings due/(payable)

X12A0T

page 81




Note 22. Statement of developer contributions (continued)

$ ’000

S7.11 CONTRIBUTIONS – UNDER A PLAN

CONTRIBUTION PLAN (former Murray Shire)

DrainageRoadsOpen spaceDomestic Waste

CONTRIBUTION PLAN (former Wakool)

DrainageRoadsOpen spaceCommunity facilities

duringyear

442

1

–

– –

assetrestricted

–

Internal Held as

–

–

(26)

borrowing

– 291

–

1

Held as

– –

1

6 (49)

(88)

1

restrictedInternal

(to)/from

5

balance

8 21

assetearned

7

–

in year

–

–

4 96

234 13

– –

–

Interest

216

–

123

–

Non-cash

370 –

Cash

Expenditure

1

Total

Cash

Contributionsreceived during the year

153 –

370

Opening

–

Total

PURPOSE

12 –

– – 7 –

–

yearduring

7 42

Interest

in year

–

399 1 –

– –

borrowing

(10)

Expenditure

(7)

(16)

(to)/from

42 (77)

Opening

99

received during the year

Non-cash

314

–

earned

(1)

PURPOSE

11

Contributions

balance

–

–

Cumulative internal


Cumulative internal


page 82





$ ’000

S7.12 LEVIES – UNDER A PLAN

CONTRIBUTION PLAN (former Murray Shire)

Community facilities

S7.11 CONTRIBUTIONS – NOT UNDER A PLAN

S94 CONTRIBUTIONS – NOT UNDER A PLAN (former Wakool)

RoadsKerb & Gutter

– 289

(to)/fromborrowing restricted

Held as

assetduringearned

InternalExpenditure

–

PURPOSE

received during the year

142 142

Opening

Total 47 – –

Total

balancePURPOSE

Non-cash yearin year

Contributions

Cash

Interest

(32)

(9) 149

15

(9) 149 7

289 –

1

–

–

Interest Expenditure

– 7

1 16

– asset

–

(to)/from

– balance

–

Contributions Held asrestricted

16

Internalborrowing

–

duringyear

Opening

–

earned

– Cash Non-cash

received during the yearin year

(32) 32 –

–

Cumulative internal


Cumulative internal


–

page 83





$ ’000

S64 contributions

S64 contributions (former Murray Shire)

SewerWater

S64 contributions (former Wakool)

WaterSewerage

PURPOSEContributions Interest Expenditure Internal Held as

Opening received during the year earned during borrowing restrictedbalance Cash Non-cash in year year (to)/from asset

382 95 – 11

Total 831 254 – 15 (373) – 727

PURPOSEContributions Interest Expenditure Internal Held as

Opening received during the year earned during borrowing restrictedbalance Cash Non-cash in year year (to)/from asset

75 101 – – (176) – –

Total 166 229 – 1 (224) – 172 91 128 – 1 (48) – 172

–

Cumulative internal


Cumulative internal


–

(25) – 463 449 159 – 4 (348) – 264

page 84




Note 23. Financial result and financial position by fund

Income Statement by fund$ ’000

Continuing operationsIncome from continuing operationsRates and annual chargesUser charges and feesInterest and investment revenueOther revenuesGrants and contributions provided for operating purposesGrants and contributions provided for capital purposesTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsBorrowing costsMaterials and contractsDepreciation and amortisationOther expensesNet losses from the disposal of assetsShare of interests in joint ventures and associatesusing the equity methodTotal expenses from continuing operationsOperating result from continuing operations

Net operating result for the year

Net result attributable to each council fund

Net operating result for the year before grants and contr and contributions provided for capital purposes

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.

Water

2,435

1,010 11 126 17,174

2018 2018

216

10,980 282

1,172 1,833 5,024

2018

2,237

2018

215

General1Sewer

42 44

1,527 184

34,025

223 3,482

44

3,682

–

12,567 –

4,816

1,335

4,816

6,497

3,805

335

708

3,010

10,994 682

449 349 –

–

–

– 1,184

912 7

4,816 1,184

–

– –

38,842 4,989

2,342

446

1,184 669

1,141

57

–

–

669

669

849

372

X13A1T

page 85



Notes to the Financial Statements as at 30 June 2018

Note 23. Financial result and financial position by fund (continued)

Statement of Financial Position by fund$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesInventoriesOtherTotal current assets

Non-current assetsInvestmentsReceivablesInventoriesInfrastructure, property, plant and equipmentInvestments accounted for using the equity methodIntangible assetsTotal non-current assetsTOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesIncome received in advanceBorrowingsProvisionsTotal current liabilities

Non-current liabilitiesBorrowingsProvisionsTotal non-current liabilitiesTOTAL LIABILITIESNet assets

EQUITYAccumulated surplusRevaluation reservesTotal equity1 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.

37

–

4,355

43,411 – 1,492

–

–

– –

–

11,049

– –

96 13

13

47,626

37

132 2,888 –

11,405 50,760

47,613 627,030

50,892

36

47,613

638,435

50,760 –

8,792

– –

3,518

–

38,834

–

– –

38,834 –

–

1,622

–

2

581,283

387 485 –

– 59 738

259

3,763

3,757

582,534

– 41,919

–

48,448 5,279

General1

(1,416)

2018

2,200

Sewer

2018

Water

13,052

8,517

46,405

627,030

–

13

55,901

0

7,481 –

2018

–

–

377 0

2018

–

1,978

–

4,290 6,513 991 301

71

1,266

613,977 36,565

page 86




Note 24(a). Statement of performance measures – consolidated results

$ ’000

Local government industry indicators – consolidated

1. Operating performance ratioTotal continuing operating revenue (1) excluding capitalgrants and contributions less operating expensesTotal continuing operating revenue (1) excluding capitalgrants and contributions

2. Own source operating revenue ratioTotal continuing operating revenue (1)

excluding all grants and contributionsTotal continuing operating revenue (1)

3. Unrestricted current ratioCurrent assets less all external restrictions (2)

Current liabilities less specific purpose liabilities (3, 4)

4. Debt service cover ratioOperating result (1) before capital excluding interestand depreciation/impairment/amortisationPrincipal repayments (Statement of Cash Flows)plus borrowing costs (Income Statement)

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstandingRates, annual and extra charges collectible

6. Cash expense cover ratioCurrent year’s cash and cash equivalentsplus all term depositsMonthly payments from cash flow of operating and 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 Notes 11 and 12.(4) Refer to Note 11(b) and 12(b) – excludes all payables and provisions not expected to be paid in the next 12 months (incl. ELE).

2018 2018 2017Indicator

x12 62,014 24.51 mths

20.1 mths > 3 mths

5.92x 5.09x > 1.5x37,898

Amounts Indicator Benchmark

15,764

2,730 6.40% 17.68% > 0.00%

6,402

2,530

< 10% regional &

rural

1,758 10.31% 7.15%

1,081

42,671

25,411 54.40% 39.39% > 60.00%46,711

17,052

14.58x 17.85x > 2x

X13A0T

page 87




Note 24(b). Statement of performance measures – by fund

$ ’000

Local government industry indicators – by fund

1. Operating performance ratioTotal continuing operating revenue (1) excluding capital grants and contributions less operating expensesTotal continuing operating revenue (1) excluding capital grants and contributions

2. Own source operating revenue ratioTotal continuing operating revenue (1) excluding capital grants and contributions Total continuing operating revenue (1)

3. Unrestricted current ratioCurrent assets less all external restrictions (2)

Current liabilities less specific purpose liabilities (3, 4)

Notes

(1) - (4) Refer to Notes at Note 24a above.(5) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

> 1.5x

32.15%

2017Water indicators Sewer indicatorsGeneral indicators 5

11.89x

Benchmark

> 60.00%

> 0.00%

47.42%

5.92x

4.90% 19.81% 12.61% 12.40% 15.73% -7.00%

2018 2018 20182017 2017

86.39% 86.61% 91.20% 88.29%

5.09x 41.00x23.15x10.32x

X14A0T

page 88




Note 24(b). Statement of performance measures – by fund (continued)

$ ’000

Local government industry indicators – by fund (continued)

4. Debt service cover ratioOperating result (1) before capital excluding interest and depreciation/impairment/amortisationPrincipal repayments (Statement of Cash Flows) plus borrowing costs (IncomeStatement)

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstandingRates, annual and extra charges collectible

6. Cash expense cover ratioCurrent year’s cash and cash equivalents plus all term depositsMonthly payments from cash flow of operating and financing activities

Notes

(1) Refer to Notes at Note 24a above.(5) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

END OF AUDITED FINANCIAL STATEMENTS

2018

< 10% regional &

rural

x12

Benchmark2018 2017 2018 2017

months months monthsmonths26.70 9.68 14.53 17.43 28.88

months

> 2x

> 3 months

7.84%

General indicators 5 Water indicators Sewer indicators

240.25x

48.75 months

2017

9.73% 5.76%11.02% 5.62%

12.81x

10.27%

17.75x 23.56x 14.07x 0.00x

page 89




Note 24(c). Statement of performance measures – consolidated results (graphs)

Benchmark: ――― Minimum >=0.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark


Benchmark: ――― Minimum >=1.50 Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Purpose of operating

performance ratio

Commentary on 2017/18 result

2017/18 ratio 6.40%

This ratio measures Council’s

achievement of containing operating expenditure within operating revenue.

2018 figure is above the benchmark and sound. 2017 figure distorted by the receipt

of the substantial amalgamation funds.

To assess the adequacy of working capital and its ability to satisfy obligations in the short term for

the unrestricted activities of Council.

Sound liquidity position, which is assisted by some incomplete capital expenditure

projects.

Purpose of own source operating

revenue ratio


2017/18 ratio 54.40%

This ratio measures fiscal flexibility. It is

the degree of reliance on external funding

sources such as operating grants and

contributions.

Improved position on last year. There are still additional operational costs with the

amalgamation that impacted on the result in 2018.

Purpose of unrestricted current

ratio


2017/18 ratio 5.92x

18%

6%

0%2%4%6%8%

10%12%14%16%18%20%

2017 2018

Rat

io %

1. Operating performance ratio

39%

54%

0%

10%

20%

30%

40%

50%

60%

70%

2017 2018

Rat

io %

2. Own source operating revenue ratio

5.15.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2017 2018

Rat

io (x

)

3. Unrestricted current ratio

X15A0T

page 90




Note 24(c). Statement of performance measures – consolidated results (graphs)


Benchmark: ――― Maximum <10.00% Ratio is within BenchmarkSource for Benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside Benchmark


To assess the impact of uncollected rates and annual charges on Council’s liquidity and the adequacy of

recovery efforts.

Outstanding rates is just above the benchmark due to the prevailing economic

conditions. In particular our rural communities are under pressure.

Purpose of debt service cover ratio


2017/18 ratio 14.58x

This ratio measures the availability of operating cash to

service debt including interest, principal and

lease payments

Council's continued loan repayment program ensures that this ratio is sound.

No new loans taken in the reporting period.

Purpose of rates and annual charges

outstanding ratio


2017/18 ratio 10.31%

Purpose of cash expense cover ratio


2017/18 ratio 24.51 mths

This liquidity ratio indicates the number of months a Council can continue paying

for its immediate expenses without

additional cash inflow.

Sound liquidity position as explained at graph 3 above.

17.814.6

0.02.04.06.08.0

10.012.014.016.018.020.0

2017 2018

Rat

io (x

)

4. Debt service cover ratio

7%

10%

0%

2%

4%

6%

8%

10%

12%

2017 2018

Rat

io %

5. Rates, annual charges, interest and extra charges outstanding percentage

20.124.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2017 2018

Rat

io (m

ths)

6. Cash expense cover ratio

page 91




Note 25. Council information and contact details

Principal place of business:21 Conargo StreetMathoura NSW 2710

Contact detailsMailing address: Opening hours:PO Box 21 Opening hours for all service centres areMathoura NSW 2710 Monday to Friday 9.00 am to 4.00 pm

Telephone: 1300 087 004 Internet: www.murrayriver.nsw.gov.auFacsimile: Email: [email protected]

Officers Elected membersGENERAL MANAGER MAYORDes Bilske Chris Bilkey

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORSRoss Mallett Gen Campbell (Deputy Mayor)

Tony AquinoPUBLIC OFFICER Nikki CohenRoss Mallett Ann Crowe

Neil GoreyAUDITORS Alan MathersAuditor General Geoff WiseGPO Box 12 Thomas WeyrichSYDNEY NSW 2001

Other informationABN: 30 30 8161 484

X16A0T

page 92

http://www.murrayriver.nsw.gov.au/




















mailto:[email protected]




















Murray River Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2018

SPFS 2018


Special Purpose Financial Statements for the year ended 30 June 2018

Contents

1. Statement by Councillors and Management

2. Special Purpose Financial Statements:

Income Statement – Water Supply Business ActivityIncome Statement – Sewerage Business ActivityIncome Statement – Other Business Activities

Statement of Financial Position – Water Supply Business ActivityStatement of Financial Position – Sewerage Business ActivityStatement of Financial Position – Other Business Activities

3. Notes to the Special Purpose Financial Statements

4. Auditor’s Report

Background

These Special Purpose Financial Statements have been prepared for the use by both Council and the Office ofLocal Government in fulfilling their requirements under National Competition Policy.

The principle of competitive neutrality is based on the concept of a ‘level playing field’ between persons/entitiescompeting in a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, state or local, should operatewithout net competitive advantages over other businesses as a result of their public ownership.

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 beingwater supply, sewerage services, abattoirs, gas production and reticulation, and (b) those activities with a turnoverof more than $2 million that Council has formally declared as a business activity (defined as Category 1 activities).

In preparing these financial statements for Council’s self-classified Category 1 businesses and ABS-definedactivities, councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax-equivalentregime payments and debt guarantee fees (where the business benefits from Council's borrowing position bycomparison with commercial rates).

5

Page

34

n/a

2

(iv)

7

n/a6

(i)

(ii)

(iii)

page 1

SPFS 2018



Statement by Councillors and Management made pursuant to the Local Government Code of Accounting Practice and Financial Reporting

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

the NSW Government Policy Statement ‘Application of National Competition Policy toLocal Government’,

the Division of Local Government Guidelines ‘Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality’,

the Local Government Code of Accounting Practice and Financial Reporting,

the NSW Office of Water Best-Practice Management of Water and Sewerage Guidelines.

To the best of our knowledge and belief, these financial statements:

present fairly the operating result and financial position for each of Council’s declared businessactivities for the year, and

accord with Council’s accounting and other records.

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

Signed in accordance with a resolution of Council made on 27 November 2018.

Chris Bilkey Gen CampbellMayor Councillor27 November 2018 27 November 2018

Des Bilske Ross MallettGeneral manager Responsible accounting officer27 November 2018 27 November 2018

X2A0T

page 2

SPFS 2018


Income Statement of Council's Water Supply Business Activity for the year ended 30 June 2018

$ ’000

Income from continuing operationsAccess chargesUser chargesFeesInterestGrants and contributions provided for non-capital purposesOther incomeTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsBorrowing costsMaterials and contractsDepreciation, amortisation and impairmentWater purchase chargesLoss on sale of assetsDebt guarantee fee (if applicable)Other expensesTotal expenses from continuing operationsSurplus (deficit) from continuing operations before capital amounts

Grants and contributions provided for capital purposesSurplus (deficit) from continuing operations after capital amounts

Surplus (deficit) from all operations before taxLess: corporate taxation equivalent (30%) [based on result before capital]

SURPLUS (DEFICIT) AFTER TAX

Plus opening retained profitsPlus/less: prior period adjustmentsPlus adjustments for amounts unpaid:– Debt guarantee fees– Corporate taxation equivalentClosing retained profits

Return on capital %Subsidy from Council

Calculation of dividend payable:Surplus (deficit) after taxLess: capital grants and contributions (excluding developer contributions)Surplus for dividend calculation purposesPotential dividend calculated from surplus

13/5/16to 30/6/17

848

335 1,183

1,183 (254)

593 297

2018

254 46,850

2.0%248

2,435 1,793

39 216 44

126 4,654

1,527 7

682 1,141

929

45,221 445

929 (335)

1,096 (656) 440

156 – 1

293 3,806

1 188

45,221

1.6%303

220

– 306

4,325 628

656 1,284

1,284 (188)

1,096

43,937 –

–

2,663 1,790

53 202 95

150 4,953

1,254 19

1,049 1,226

148 323

X3A0T

page 3

SPFS 2018


Income Statement of Council's Sewerage Business Activity for the year ended 30 June 2018

$ ’000

Income from continuing operationsAccess chargesUser chargesLiquid trade waste chargesFeesInterestGrants and contributions provided for non-capital purposesOther incomeTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsMaterials and contractsDepreciation, amortisation and impairmentLoss on sale of assetsCalculated taxation equivalentsOther expensesTotal expenses from continuing operationsSurplus (deficit) from continuing operations before capital amounts

Grants and contributions provided for capital purposesSurplus (deficit) from continuing operations after capital amounts

Surplus (deficit) from all operations before taxLess: corporate taxation equivalent (30%) [based on result before capital]

SURPLUS (DEFICIT) AFTER TAX

Plus opening retained profitsPlus adjustments for amounts unpaid:– Taxation equivalent payments– Corporate taxation equivalentClosing retained profits

Return on capital %Subsidy from Council

Calculation of dividend payable:Surplus (deficit) after taxLess: capital grants and contributions (excluding developer contributions)Surplus for dividend calculation purposesPotential dividend calculated from surplus

13/5/16to 30/6/17

–

99 –

99

35,797

2018

18

725 711

1,169 213

2,973

2,320 21

301

2,237 42

220 20

215

363 3,181

223 662

42 11

2,787

35,896

912 372

11 225 77

708

(208)

307 99

530

35,896

-0.5%1,116

– 7

662 (132)

99 (307)

– –

7 132

153

–

–

36,565

1.1%583

530 (223) 307

349 2,349

439

X3A1T

page 4

SPFS 2018


Statement of Financial Position – Council's Water Supply Business Activity as at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesTotal current assets

Non-current assetsInfrastructure, property, plant and equipmentIntangible assetsTotal non-current assetsTOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesBorrowingsTotal current liabilities

Non-current liabilitiesBorrowingsTotal non-current liabilitiesTOTAL LIABILITIESNET ASSETS

EQUITYAccumulated surplusRevaluation reservesTOTAL EQUITY 48,204

4,355

50,760

48,378

36 59

75 96 62

132

37

48,204 174

20172018

50,892

13

39,895

99 37

46,405

99

2,200 6,953

43,411 40,533

41,919

4,290 – 991 892

7,481 7,845

1,492 638

50,760 2,983

45,221

X4A0T

page 5

SPFS 2018


Statement of Financial Position – Council's Sewerage Business Activity as at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesTotal current Assets

Non-current assetsInfrastructure, property, plant and equipmentTotal non-current assetsTOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesBorrowingsTotal current liabilities

Total non-current liabilitiesTOTAL LIABILITIESNET ASSETS

EQUITYAccumulated surplusRevaluation reservesTOTAL EQUITY

6 13

45,756

45,749

301 287 6,513

2017

38,834 38,145

1,978

2018

5,117

13

– 1 13 7

2,207

8,792 7,611

47,626

36,565 11,049 9,853

45,749

7 – –

35,896

47,613

47,613

38,834 38,145

X4A1T

page 6

SPFS 2018



Contents of the notes accompanying the financial statements

Details

Summary of significant accounting policies

Water Supply Business Best-Practice Management disclosure requirements

Sewerage Business Best-Practice Management disclosure requirements 143

Note Page

1

2

8

12

X5A0T

page 7

SPFS 2018

Murray River Council Notes to the Special Purpose Financial Statements for the year ended 30 June 2018 Note 1. Significant accounting policies

page 8

A statement summarising the supplemental accounting policies adopted in the preparation of the Special Purpose Financial Statements (SPFS) for National Competition Policy (NCP) reporting purposes follows. These financial statements are SPFS prepared for use by Council and the Office of Local Government. For the purposes of these statements, the Council is a non-reporting not-for-profit entity. The figures presented in these Special Purpose Financial Statements have been prepared in accordance with the recognition and measurement criteria of relevant Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and Australian Accounting Interpretations. The disclosures in these Special Purpose Financial Statements have been prepared in accordance with the Local Government Act 1993 (NSW), the Local Government (General) Regulation, and the Local Government Code of Accounting Practice and Financial Reporting. The statements are prepared on an accruals basis. They are based on historic costs and do not take into account changing money values or, except where specifically stated, current values of non-current assets. Certain taxes and other costs, appropriately described, have been imputed for the purposes of the National Competition Policy. The Statement of Financial Position includes notional assets/liabilities receivable from/payable to Council's general fund. These balances reflect a notional intra-entity funding arrangement with the declared business activities. National Competition Policy Council has adopted the principle of ‘competitive neutrality’ in its business activities as part of the National Competition Policy which is being applied throughout Australia at all levels of government. The framework for its application is set out in the June 1996 NSW government policy statement titled 'Application of National Competition Policy to Local Government'. The Pricing and Costing for Council Businesses, A Guide to Competitive Neutrality issued by the Office of Local Government in July 1997 has also been adopted. The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standard for disclosure requirements. These disclosures are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents, Council subsidies, return on investments (rate of return), and dividends paid. Declared business activities In accordance with Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality, Council has declared that the following are to be considered as business activities: Category 1 (where gross operating turnover is over $2 million) a. Water Supply

Provision and distribution of water to the towns within the boundaries of the Council.

SPFS 20187

Murray River Council Notes to the Special Purpose Financial Statements for the year ended 30 June 2018 Note 1. Significant accounting policies (continued)

page 9

b. Sewerage

Treatment of wastewater to the towns within the boundaries of the Council. Category 2 (where gross operating turnover is less than $2 million)

Council has no Category 2 Businesses. Monetary amounts Amounts shown in the financial statements are in Australian currency and rounded to the nearest thousand dollars, except for Note 2 (Water Supply Best-Practice Management Disclosures) and Note 3 (Sewerage Best-Practice Management Disclosures). As required by Crown Lands and Water (CLAW), the amounts shown in Note 2 and Note 3 are disclosed in whole dollars. (i) Taxation-equivalent charges Council is liable to pay various taxes and financial duties. Where this is the case, they are disclosed as a cost of operations just like all other costs. However, where Council does not pay some taxes which are generally paid by private sector businesses, such as income tax, these equivalent tax payments have been applied to all Council-nominated business activities and are reflected in Special Purpose Financial Statements. For the purposes of disclosing comparative information relevant to the private sector equivalent, the following taxation equivalents have been applied to all Council-nominated business activities (this does not include Council’s non-business activities): Notional rate applied (%) Corporate income tax rate – 30% Land tax – the first $629,000 of combined land values attracts 0%. For the combined land values in excess of $629,001 up to $3,846,000 the rate is 1.6% + $100. For the remaining combined land value that exceeds $3,846,000 a premium marginal rate of 2.0% applies. Payroll tax – 5.45% on the value of taxable salaries and wages in excess of $750,000. In accordance with Crown Lands and Water (CLAW), a payment for the amount calculated as the annual tax equivalent charges (excluding income tax) must be paid from water supply and sewerage business activities. The payment of taxation equivalent charges, referred to in the NSW Office of Water Guidelines to as a ‘dividend for taxation equivalent’, may be applied for any purpose allowed under the Local Government Act, 1993. Achievement of substantial compliance to the NSW Office of Water Guidelines is not a prerequisite for the payment of the tax equivalent charges, however the payment must not exceed $3 per assessment. Council paid Payroll tax on its Category 1 businesses in 2017/18.

SPFS 20187


page 10

Income tax An income tax equivalent has been applied on the profits of the business activities. Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be taken into account in terms of assessing the rate of return required on capital invested. Accordingly, the return on capital invested is set at a pre-tax level - gain/(loss) from ordinary activities before capital amounts, as would be applied by a private sector competitor. That is, it should include a provision equivalent to the corporate income tax rate, currently 30%. Income tax is only applied where a gain/ (loss) from ordinary activities before capital amounts has been achieved. Since the taxation equivalent is notional – that is, it is payable to Council as the ‘owner’ of business operations - it represents an internal payment and has no effect on the operations of the Council. Accordingly, there is no need for disclosure of internal charges in the SPFS. The rate applied of 30% is the equivalent company tax rate prevalent at reporting date. No adjustments have been made for variations that have occurred during the year. Local government rates and charges A calculation of the equivalent rates and charges payable on all category 1 businesses has been applied to all land assets owned or exclusively used by the business activity. Loan and debt guarantee fees The debt guarantee fee is designed to ensure that council business activities face ‘true’ commercial borrowing costs in line with private sector competitors. In order to calculate a debt guarantee fee, Council has determined what the differential borrowing rate would have been between the commercial rate and Council’s borrowing rate for its business activities. (ii) Subsidies Government policy requires that subsidies provided to customers, and the funding of those subsidies, must be explicitly disclosed. Subsidies occur when Council provides services on a less-than-cost-recovery basis. This option is exercised on a range of services in order for Council to meet its community service obligations. Accordingly, ‘subsidies disclosed’ (in relation to National Competition Policy) represents the difference between revenue generated from ‘rate of return’ pricing and revenue generated from prices set by Council in any given financial year. The overall effect of subsidies is contained within the Income Statement of each reported business activity. (iii) Return on investments (rate of return) The NCP policy statement requires that councils with Category 1 businesses ‘would be expected to generate a return on capital funds employed that is comparable to rates of return for private businesses operating in a similar field’.

SPFS 20187


page 11

Such funds are subsequently available for meeting commitments or financing future investment strategies. The actual rate of return achieved by each business activity is disclosed at the foot of each respective Income Statement. The rate of return 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 2.63% at 30/6/18. (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. Each dividend must be calculated and approved in accordance with the DPIW guidelines and must not exceed: (i) 50% of this surplus in any one year, or

(ii) the number of water supply or sewerage assessments at 30 June 2018 multiplied by $30 (less the payment for tax equivalent charges, not exceeding $3 per assessment).

In accordance with the DPIW guidelines a Dividend Payment form, Statement of Compliance, Unqualified Independent Financial Audit Report and Compliance Audit Report are required to be submitted to the DPIW.

SPFS 2018


Notes to the Special Purpose Financial Statements for the year ended 30 June 2018

Note 2. Water supply business best-practice management disclosure requirements

Dollars amounts shown below are in whole dollars (unless otherwise indicated)

1. Calculation and payment of tax-equivalents[all local government local water utilities must pay this dividend for tax equivalents]

Calculated tax equivalents

Number of assessments multiplied by $3/assessment

Amounts payable for tax equivalents [lesser of (i) and (ii)]

Amounts actually paid for tax equivalents

2. Dividend from surplus50% of surplus before dividends[calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

Number of assessments multiplied by $30/assessment, less tax equivalentcharges/assessment

Cumulative surplus before dividends for the 3 years to 30 June 2018, less thecumulative dividends paid for the 2 years to 30 June 2017 and 12 May 2016

2018 Surplus 2017 Surplus 2016 Surplus2017 Dividend 2016 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment criteria]

Are the overhead reallocation charges to the water business fair and reasonable? a

3. Required outcomes for 6 criteria[to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

Completion of strategic business plan (including financial plan)

Full cost recovery, without significant cross subsidies[refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

– Complying charges [item 2 (b) in table 1]

– DSP with commercial developer charges [item 2 (e) in table 1]

– If dual water supplies, complying charges [item 2 (g) in table 1]

Sound water conservation and demand management implemented

Sound drought management implemented

Complete performance reporting form (by 15 September each year)

a. Integrated water cycle management evaluation

b. Complete and implement integrated water cycle management strategy

(iv)

(iii)

(i)

(iv)

(iii)

(iii)

(i)

(ii)

(ii)

(v)

(i)

(vi)

593,269 439,600

YES

YES

–

YES

(iv) YES

YES

YES

(ii)

YES

YES

1,000

152,840

2018

296,634

152,840

1,032,869

15,384

1,000

YES

YES(v)

(vi)

YES

X6A0T

page 12

SPFS 2018



Note 2. Water supply business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicators

Total revenue (water)Total income (w13) – grants for the acquisition of assets (w11a) – interest income (w9)– Aboriginal Communities W&S Program income (w10a)

Revenue from residential usage charges (water)Income from residential usage charges (w6b) x 100 divided by the sum of[income from residential usage charges (w6a) + income from residentialaccess charges (w6b)]

Written down replacement cost of fixed assets (water)Written down current cost of system assets (w47)

Operating cost (OMA) (water)Management expenses (w1) + operational and maintenance expenses (w2)

Capital expenditure (water)Acquisition of fixed assets (w16)

Economic real rate of return (water)[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)]

Capital works grants (water)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 FinancialStatements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban PerformanceReporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

$’000NWI F9

2018

4,797

NWI F4 %

41,912

$’000

44.85%

NWI F1

NWI F26 – $’000

NWI F11

NWI F17 %

NWI F14 $’000

2.60%

1,204

2,568 $’000

page 13

SPFS 2018



Note 3. Sewerage business best-practice management disclosure requirements


1. Calculation and payment of tax-equivalents[all local government local water utilities must pay this dividend for tax equivalents]

Calculated tax equivalents

Number of assessments multiplied by $3/assessment

Amounts payable for tax equivalents [lesser of (i) and (ii)]

Amounts actually paid for tax equivalents

2. Dividend from surplus

50% of surplus before dividends[calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

Number of assessments x ($30 less tax equivalent charges per assessment)

Cumulative surplus before dividends for the 3 years to 30 June 2018, less thecumulative dividends paid for the 2 years to 30 June 2017 and 12 May 2016

2018 Surplus 2017 Surplus 2016 Surplus2017 Dividend 2016 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment criteria]

Are the overhead reallocation charges to the sewer business fair and reasonable? a

3. Required outcomes for 4 criteria [to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

Completion of strategic business plan (including financial plan)

Pricing with full cost-recovery, without significant cross subsidies [refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

Complying charges Residential [item 2 (c) in table 1] Non-residential [item 2 (c) in table 1] Trade waste [item 2 (d) in table 1]

DSP with commercial developer charges [item 2 (e) in table 1] Liquid trade waste approvals and policy [item 2 (f) in table 1]

Complete performance reporting form (by 15 September each year)

a. Integrated water cycle management evaluation

b. Complete and implement integrated water cycle management strategy

(208,000)

(v)

(iii)

(i)

(ii)

(a)(b)

(vi)

(iv)

–

(i)

(iv)

(iii)

(ii)

(iii)

306,996

(i)

(ii) 145,400

(iv)

(c)

2018

YES

98,996

YES

7,000

YES

YES

98,996

YES

YES

7,000

15,240

YES

YES

YES

153,498

YES

YES

X7A0T

page 14

SPFS 2018



Note 3. Sewerage business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicators

Total revenue (sewerage)Total income (s14) – grants for acquisition of assets (s12a) – interest income (s10)– Aboriginal Communities W&S Program income (w10a)

Written down replacement cost of fixed assets (sewerage)Written down current cost of system assets (s48)

Operating cost (sewerage)Management expenses (s1) + operational and maintenance expenses (s2)

Capital expenditure (sewerage)Acquisition of fixed assets (s17)

Economic real rate of return (sewerage)[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)]

Capital works grants (sewerage)Grants for the acquisition of assets (12a)

National Water Initiative (NWI) financial performance indicatorsWater and sewer (combined)

Total income (water and sewerage)Total income (w13 + s14) + gain/loss on disposal of assets (w14 + s15)minus grants for acquisition of assets (w11a + s12a) – interest income (w9 + s10)

Revenue from community service obligations (water and sewerage)Community service obligations (NWI F25) x 100 divided by total income (NWI F3)

Capital expenditure (water and sewerage)Acquisition of fixed assets (w16 + s17)

Economic real rate of return (water and sewerage)[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 100divided by [written down replacement cost of fixed assets (NWI F9 + NWI F10)+ plant and equipment (w33b + s34b)]

Dividend (water and sewerage)Dividend paid from surplus (2 (v) of Note 2 + 2 (v) of Note 3)

Dividend payout ratio (water and sewerage)Dividend (NWI F20) x 100 divided by net profit after tax (NWI F24)

NWI F16 $’000

NWI F27

NWI F18

NWI F15 $’000

%

$’000

NWI F2

NWI F10

NWI F12

$’000

$’000

1.99%

1,289

%

– $’000

0.00%

NWI F19

NWI F21

NWI F20

%

NWI F3 $’000 7,607

NWI F8 % 1.13%

2018

$’000

–

38,834

2,809

1.34%

1,580

85

page 15

SPFS 2018



Note 3. Sewerage business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicatorsWater and sewer (combined)

Net debt to equity (water and sewerage)Overdraft (w36 + s37) + borrowings (w38 + s39) – cash and investments (w30 + s31)x 100 divided by [total assets (w35 + s36) – total liabilities (w40 + s41)]

Interest cover (water and sewerage)Earnings before interest and tax (EBIT) divided by net interest

Earnings before interest and tax (EBIT):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:Interest expense (w4a + s4a) – interest income (w9 + s10)

Net profit after tax (water and sewerage)Surplus before dividends (w15a + s16a) – tax equivalents paid (Note 2-1 (iv) + Note 3-1 (iv))

Community service obligations (water and sewerage)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 FinancialStatements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban PerformanceReporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

-15.13%

2018

86

> 100

1,853

(387)

$’000

NWI F25 $’000

NWI F24

NWI F23

NWI F22 %

1,610

page 16

Murray River Council SPECIAL SCHEDULES for the year ended 30 June 2018

Special Schedules 2018


Special Schedules for the year ended 30 June 2018

Contents

Special Schedules 1

Net Cost of Services

Permissible income for general ratesIndependent Auditors Report

Water Supply Operations – incl. Income StatementWater Supply – Statement of Financial Position

Sewerage Service Operations – incl. Income StatementSewerage Service – Statement of Financial Position

Notes to Special Schedules 3 and 5

Report on Infrastructure Assets

1 Special Schedules are not audited (with the exception of Special Schedule 2).

Background

These Special Schedules have been designed to meet the requirements of special purpose users such as;

the NSW Grants Commissionthe Australian Bureau of Statistics (ABS),the NSW Office of Water (NOW), andthe Office of Local Government (OLG).

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, andthe monitoring of the financial activities of specific services.

18Special Schedule 7

(ii)

(i)

17

16

Page

2

912

Special Schedule 6Special Schedule 5 13

Special Schedule 1

Special Schedule 3

Special Schedule 2 4Special Schedule 2 6

Special Schedule 4

page 1



Special Schedule 1 – Net Cost of Services for the year ended 30 June 2018

$’000

Governance

Administration

Public order and safety

Beach controlEnforcement of local government regulationsAnimal controlOtherTotal public order and safety

Health

EnvironmentNoxious plants and insect/vermin controlOther environmental protectionSolid waste managementStreet cleaningDrainageStormwater managementTotal environment

Community services and educationAdministration and educationSocial protection (welfare)Aged persons and disabledChildren’s servicesTotal community services and education

Housing and community amenitiesPublic cemeteriesPublic conveniencesStreet lightingTown planningOther community amenitiesTotal housing and community amenities

Water supplies

Sewerage services

20

19 –

Expenses from. continuing. operations. Non-capital.

129

–

– 121

Capital.

Income fromcontinuing operations

1

23

2 59

1,961

256

2,143

64

–

–

–

– 82

–

385

1,199 19

3,786

52

2,744 2,329 223

–

(82)

(14) (152)

(500) (170)

(210) –

–

–

130

567

4,454

5,387

898

1,009

– – (951)

– (307)

–

330

180 –

1,207 –

–

235

Function or activity

–

Fire service levy, fire protection, emergency services

–

229

222 1,027

Net cost.of services.

(128) –

(663)

(687)

(726) –

912 – – (912)

(160) – –

(4,378)

–

20

237

1,314

1,548

152

1,180 –

335

142 –

1,627

144

211 827

1,550

2,889 –

142

– –

(134)

–

1,003

(918)

(349)

– 5

–

638

(5)

(178)

412 –

–

1 (62)

(211)

–

X2A0T

page 2



Special Schedule 1 – Net Cost of Services (continued) for the year ended 30 June 2018

$’000

Recreation and culturePublic librariesMuseumsArt galleriesCommunity centres and hallsPerforming arts venuesOther performing artsOther cultural servicesSporting grounds and venuesSwimming poolsParks and gardens (lakes)Other sport and recreationTotal recreation and culture

Fuel and energy

Agriculture

Mining, manufacturing and constructionBuilding controlOther mining, manufacturing and constructionTotal mining, manufacturing and const.

Transport and communicationUrban roads (UR) – localUrban roads – regionalSealed rural roads (SRR) – localSealed rural roads (SRR) – regionalUnsealed rural roads (URR) – localUnsealed rural roads (URR) – regionalBridges on UR – localBridges on SRR – localBridges on URR – localBridges on regional roadsParking areasFootpathsAerodromesOther transport and communicationTotal transport and communication

Economic affairsCamping areas and caravan parksOther economic affairsTotal economic affairs

Totals – functionsGeneral purpose revenues (1)

NET OPERATING RESULT (2)

(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

Income fromcontinuing operations

– – –

12

79

–

40,042

44

12,612 7,195

2,901 2,779

42,671

3,386

326 122

19,006 39,998

3,060

–

23,665

– –

4,040

58

–

–

– –

–

– –

–

71 –

234 31

323

206

– –

2,532

Function or activity

440

–

–

101

–

60 –

–

–

688

–

–

218

–

–

–

–

46

– 121

–

788 3,790 – –

249

– –

–

680

634

1,172 21 3,344 3,455

–

–

Non-capital.

–

Expenses from. continuing. operations.

857

1,304 196

187

73

– –

3,516 2,791

– –

918 67

3,335

380

65

928

(203)

(184)

– (176)

–

(2,753)

71 20

11

Capital.

18

–

–

–

– 1,351 78

4,040

181 (1,362)

– (27)

6,669

(44)

(12,293) 485

204

(2,885) (71)

281

–

–

–

–

–

19,006

893 –

–

(796) –

353

(323)

–

(240)

(551)

(280)

–

Net cost.of services.

(218)

(254)

(1,151)

14

(750)

1,039

–

– (766)

Share of interests – joint ventures and associates using the equity method

page 3



Special Schedule 2 – Permissible income for general rates for the year ended 30 June 2019

$’000

Notional general income calculation (1)

Last year notional general income yieldPlus or minus adjustments (2)

Notional general income

Permissible income calculation

Special variation percentage (3)

Or rate peg percentageOr crown land adjustment (incl. rate peg percentage)

Less expiring special variation amountPlus special variation amount

Or plus rate peg amountOr plus Crown land adjustment and rate peg amount

Sub-total

Plus (or minus) last year’s carry forward totalLess valuation objections claimed in the previous yearSub-total

Total permissible income

Less notional general income yieldCatch-up or (excess) result

Plus income lost due to valuation objections claimed (4)

Less unused catch-up (5)

Carry forward to next year

Former Council Murray Shire

Former Council Murray Shire

Former Council Wakool Shire

2018/19 2018/19 2018/19 2017/18 2017/18 2017/18

b 71

Former Council Wakool Shire


a 5,445 4,489 9,934 5,317 4,414 9,731


c = (a + b) 5,516 4,535 10,051 54 – 54

5,371 4,414 9,785 46 117

e 2.30%d 0.00% 0.00% 0.00% 0.00%

f 0.00% 0.00%1.50%

0.00% 0.00%2.30% 1.50%

h = d x (c – g) – g – – – – – –

j = c x f –

– – – i = c x e 127 104 231 81 66 147

– –

– – – k = (c + g + h + i + j) 5,643 4,639 10,282 5,452 4,480 9,932

– –

– l 8 (10) (2) 1 1 2

– (2) (2) n = (l + m) 8 (10) (2) 1 (1) –

– – m

o = k + n 5,650 4,630 10,280 5,453 4,479 9,932

– –

q = o – p 1 p 5,649 4,628 10,277 5,445 4,489 9,934

8 (10) (2) 2 3

– s – – – – – –

– – r –

8 (10) (2) 2 3 t = q + r – s 1

X3A0T

page 4



Special Schedule 2 – Permissible income for general rates (continued) for the year ended 30 June 2019

$’000

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 return (FDR) to administer this process.

(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 2 in the financial data return (FDR) to administer this process.

2018/19 2018/19 2018/19 2017/18 2017/18 2017/18

page 5



Special Schedule 2 – Independent Auditors Report for the year ended 30 June 2019

Report on Special Schedule 2

Insert here signed Independent Auditors Report

X4A0T

page 6



page 7



page 8



Special Schedule 3 – Water Supply Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– dams and weirsa. Operation expensesb. Maintenance expenses

– Mainsc. Operation expensesd. Maintenance expenses

– Reservoirse. Operation expensesf. Maintenance expenses

– Pumping stationsg. Operation expenses (excluding energy costs)h. Energy costsi. Maintenance expenses

– Treatmentj. Operation expenses (excluding chemical costs)k. Chemical costsl. Maintenance expenses

– Otherm. Operation expensesn. Maintenance expenseso. Purchase of water

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

13/5/16to 30/6/17

4,002

368 291 338

2018

–

3,805

–

392

–

1,133

–

–

262 288

28

– –

10 9

52 91

22

723

57

67 67 128

58

234

129

192

733 64 108

157

88 66

156 22 49

1,214

77 –

7 –

19

7

–

12

– – 90

– –

X5A0T

page 9



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 2018

$’000

Income

6. Residential chargesa. Access (including rates)b. Usage charges

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Extra charges

9. Interest income

10. Other income10a. Aboriginal Communities Water and Sewerage Program

11. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

12. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

13. Total income

14. Gain (or loss) on disposal of assets

15. Operating result

15a. Operating result (less grants for acquisition of assets)

13/5/16to 30/6/17

1,268 1,184

1,592 1,958

24

758

5,609

477

166

178

1,905

291

335

4,989

–

192

201

24

1,499

2018

1,284

383 –

203

16 44 46

–

–

– –

– 33

1,184

– (323)

273

page 10



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 2018

$’000

B Capital transactionsNon-operating expenditures

16. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

17. Repayment of debt

18. Totals

Non-operating funds employed

19. Proceeds from disposal of assets

20. Borrowing utilised

21. Totals

C Rates and charges

22. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

23. Number of ETs for which developer charges were received

24. Total amount of pensioner rebates (actual dollars)

13/5/16to 30/6/17

623 20

616 22

132 ET143 ET

84,224$ 80,409$

– –

–

65

337

417 398 4,213 4,092

2018

47

– –

1,157 –

113

–

521

–

1,269

–

71 –

page 11



Special Schedule 4 – Water Supply Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2018

$’000

ASSETS25. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

26. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

27. Inventories

28. Property, plant and equipmenta. System assetsb. Plant and equipment

29. Other assets

30. Total assets

LIABILITIES31. Bank overdraft32. Creditors

33. Borrowings

34. Provisionsa. Tax equivalentsb. Dividendc. Other

35. Total liabilities

36. NET ASSETS COMMITTED

EQUITY37. Accumulated surplus38. Asset revaluation reserve39. Other reserves

40. TOTAL EQUITY

Note to system assets:41. Current replacement cost of system assets42. Accumulated current cost depreciation of system assets43. Written down current cost of system assets

Current

264 –

– –

–

– –

–

Total

264

1,492 1,492

41,912

6,226

720 –

Non-current

–

–

36

–

–

271

–

–

6,226 –

720

43,411

–

– –

–

7,481

41,912

– – – –

–

– –

46,405

41,912

61,604 (19,692)

4,355

50,760

50,760

132

–

–

271

–

–

50,892

–

43,374 7,386

–

37 96 59

37

–

– –

– –

–

7

– 36

7

–

– –

95

X6A0T

page 12



Special Schedule 5 – Sewerage Service Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– mainsa. Operation expensesb. Maintenance expenses

– Pumping stationsc. Operation expenses (excluding energy costs)

d. Energy costse. Maintenance expenses

– Treatmentf. Operation expenses (excl. chemical, energy, effluent and biosolids management costs)

g. Chemical costsh. Energy costsi. Effluent managementj. Biosolids managementk. Maintenance expenses

– Otherl. Operation expensesm. Maintenance expenses

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

13/5/16to 30/6/17

186

2 71

186

1,169 –

–

183 140

126

–

71

160

–

47 – –

– –

2

54

– –

– –

–

–

– – –

60 57

– 99

2

2,342 2,967

708

334 251 269

236

113 39 11

201

110

2018

362

60

1

X7A0T

page 13



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 2018

$’000

Income

6. Residential charges (including rates)

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Trade waste chargesa. Annual feesb. Usage chargesc. Excess mass chargesd. Re-inspection fees

9. Extra charges

10. Interest income

11. Other income11a. Aboriginal Communities Water and Sewerage Program

12. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

13. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

14. Total income

15. Gain (or loss) on disposal of assets

16. Operating result

16a. Operating result (less grants for acquisition of assets)

13/5/16to 30/6/17

1,929 1,910

2018

223 307

74 49 – –

– 33

(213)

–

44 – –

3,011 3,279

–

99

–

– 328

148

42

202 211

72 302

13 13

–

–

391 –

– – –

669 99

669

– –

page 14



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 2018

$’000

B Capital transactionsNon-operating expenditures

17. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

18. Repayment of debt

19. Totals

Non-operating funds employed

20. Proceeds from disposal of assets

21. Borrowing utilised

22. Totals

C Rates and charges

23. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

24. Number of ETs for which developer charges were received

25. Total amount of pensioner rebates (actual dollars)

13/5/16to 30/6/17

–

–

345 590

3,909

–

–

–

143 ET

76,006$

–

557 409

23

1

–

4,091

22

132 ET

77,681$

277 86

– 53 273 –

32

–

4

–

2018

page 15



Special Schedule 6 – Sewerage Service Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2018

$’000

ASSETS26. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

27. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

28. Inventories

29. Property, plant and equipmenta. System assetsb. Plant and equipment

30. Other assets

31. Total assets

LIABILITIES32. Bank overdraft33. Creditors

34. Borrowings

35. Provisionsa. Tax equivalentsb. Dividendc. Other

36. Total liabilities

37. NET ASSETS COMMITTED

EQUITY38. Accumulated surplus39. Asset revaluation reserve40. Other reserves

41. TOTAL EQUITY

Note to system assets:42. Current replacement cost of system assets43. Accumulated current cost depreciation of system assets44. Written down current cost of system assets

8,779

–

13

– –

– –

–

13 –

–

– –

47,613

13

– – –

–

–

36,564

38,834

58,283 (19,449)

11,049

47,613

38,834

13

–

635

–

47,626

38,834

38,834

–

–

–

–

–

– – –

38,834

8,792

–

–

82 – –

–

–

–

–

219

–

– –

–

–

82 –

– – –

– –

Non-current Current

7,856 – –

–

–

Total

– –

635

7,856

219

X8A0T

page 16



Notes to Special Schedules 3 and 5 for the year ended 30 June 2018

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 expensesexcluding maintenance expenses.

Maintenance expenses (item 2 of Special Schedules 3 and 5) comprise the day to day repair and maintenanceexpenses. (Refer to Section 5 of the Local Government Asset Accounting Manual regarding capitalisationprinciples 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 ofan 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 beused when operation and maintenance work has been undertaken on behalf of the Aboriginal CommunitiesWater and Sewerage Program. Similarly, income for item 11a of Special Schedule 3 and item 12a of SpecialSchedule 5 are for services provided to the Aboriginal Communities Water and Sewerage Program and is notpart of Council’s water supply and sewerage revenue.

Residential charges

(2) (items 6a, 6b and item 6 of Special Schedules 3 and 5 respectively) include all incomefrom residential charges. Item 6 of Schedule 3 should be separated into 6a access charges (including rates ifapplicable) and 6b usage charges.

Non-residential charges

(2) (items 7a, 7b of Special Schedules 3 and 5) include all income from non-residentialcharges 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 separatedinto 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 recordedelsewhere.

Other contributions (items 12c and 13c of Special Schedules 3 and 5 respectively) including capital contributionsfor 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.

X9A0T

page 17



Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018

$’000

44.0%

Water supply

Sewerage 5%network 312

56

3,164 1,840

0.5%

49%58,470 7% 6%36% 2%

607,100

6.0%36.0% 2.0%7.0%49.0%58,470

3,337 5,125

3%53.0%

2,972

– 75 –

1,840 4%

45.3%

15,975 3.0%

networkWater supply network

597 –

5,125

597

Sub-total

59,379 6.0%

20%17%

26.0%160

175

56

46 46

Bulk earthworks75 102

– 3,337

Footpaths

1,188

160 56

102

15%

– 263

297,162 26,286

3,164 22% 1%

1%

53

33.0%1,188 2%175 175 33%

4

6%49%59,379 2.0%

47%

1%

Roads

Other

Sub-total10%

Asset categoryRequired Actual replacement

cost (GRC)maintenanceato satisfactory

Estimated cost

agreed level ofservice set by

Council

1,188

21

13%

1.0%

13%

Sealed roads

Other structuresSub-total

Asset class

Buildings

to bring assetsEstimated cost

2017/18to bring to the 2017/18 Gross

standard maintenance

Buildings

53% 26% 17%15,975

49.0%

38%49%

45%

93%

30,222

12,535

Unsealed roads

160

2,972 263

– Bridges

160 12,535

200,865 14,850 47,585 7,097

204,457

structures

23%

14.2% 9.3%

56,979 312 27% 44%

30.7%

–

Sewerage network

Sub-total 39,855

37,600

474,854

597

37,600 312 8%312

16%– 8.0%27.0%– 16.0%56,979 Sub-total

0%

56

1,188 175 10.0%

14%1%

1%10,192 0%

69,003

204,457

17.0%

4% 2%

597 39,855

5.0%

Assets in condition as a percentage of gross replacement cost

Net carryingamount

30,222

43%7% 27%

X10A0T

page 18



Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018 (continued)

$’000

Notes:a Required maintenance is the amount identified in Council’s asset management plans.

Infrastructure asset condition assessment ‘key’

Excellent/very good No work required (normal maintenance) Condition Description here…Good Only minor maintenance work required Condition Description here…Satisfactory Maintenance work required Condition Description here…Poor Renewal required Condition Description here…Very poor Urgent renewal/upgrading required Condition Description here…

5replacement

38%

5

468 Stormwater

Gross

468 468 46,820

maintenanceActualRequiredto satisfactory

standard

drainage 46,820 Sub-total 52.0%

recreational

31,519

17 Open space/

468

Asset categoryNet carrying

amountmaintenancea

to bring to the

Council

Estimated cost

agreed level ofservice set by 3cost (GRC)

3%31,519 6%171 171

2017/18

1%

Swimming pools 506 506

2017/18

52%

21

0% 0%8.0% 0.0% 0.0% 92.0%17

506

38.0% 3.0%6.0%

92%

171 1.0%171

17 17

4

assets Sub-total550 0% 8%

to bring assets

Asset class

Stormwater drainage

506 17 17 550 0.0%

Estimated cost

6,453 845,273 42.3% 32.4% 15.8% 8.3% 1.1%5,659

Assets in condition as a percentage of gross replacement cost

4321 6

10987

626,602 TOTAL – ALL ASSETS 5,659 6,453

page 19



Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2018

$ ’000

Infrastructure asset performance indicators * consolidated

1. Buildings and infrastructure renewals ratio (1)

Asset renewals (2)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratio (1)

Estimated cost to bring assets to a satisfactory standardNet carrying amount of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Cost to bring assets to agreed service level

Gross replacement cost

Notes

* All asset performance indicators are calculated using the asset classes identified in the previous table.

(1) Excludes Work In Progress (WIP)

(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.

5,659 0.67% 1.09%845,273

Amounts Indicator Benchmark2018 2018 2017

< 2.00%630,660

100.00% 100.00% > 100%

113.53% 95.13%11,475

5,659

6,453

13,027

3.45%

>= 100%

Estimated cost to bring assets toan agreed service level set by Council

Indicator

6,453

0.90%

page 20





Benchmark: ――― Maximum <2.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Benchmark: ――― Minimum >100.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Purpose of agreed service level ratio


2017/18 Ratio 0.67%

Council has maintained its Asset Renewal program


2017/18 Ratio 0.90%

2017/18 Ratio 100.00%

Baclkog figures relate to roadworks predominantly


Purpose of asset renewals ratio

Compares actual vs. required annual asset maintenance. A ratio

above 100% indicates Council is investing

enough funds to stop the infrastructure backlog growing.

Council caters for the maintenance requirements of its assets in the budget

To assess the rate at which these assets are being renewed

relative to the rate at which they are depreciating.

Purpose of infrastructure backlog ratio

This ratio provides a snapshot of the

proportion of outstanding renewal works compared to the total value of

assets under Council's care and

stewardship.

The blk of Council's assets are at the required standard


Purpose of asset maintenance ratio

This ratio showswhat proportion the backlog is against

the total valueof a Council’s infrastructure.

2017/18 Ratio 113.53%

114%95%

0%20%40%60%80%

100%120%140%

2017 2018

Rat

io %

1. Buildings and infrastructure renewals ratio

0.9%

3.5%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

2017 2018

Rat

io %

2. Infrastructure backlog ratio

100% 100%

0%20%40%60%80%

100%120%140%

2017 2018

Rat

io %

3. Asset maintenance ratio

1% 1%0%

20%

40%

60%

80%

100%

120%

2017 2018

Rat

io %

4. Cost to bring assets to agreed service level

page 21




$ ’000

Infrastructure asset performance indicators by fund

1. Buildings and infrastructure renewals ratio (2)

Asset renewals (3)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratio (2)

Estimated cost to bring assets to a satisfactory standardNet carrying amount of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Cost to bring assets to agreed service levelEstimated cost to bring assets to an agreed service level set by CouncilGross replacement cost

Notes

(1) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

(2) Excludes Work In Progress (WIP)(3) 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.

0.00%

100.00%

0.00%

100.00%

General indicators (1)

2017

>= 100%

< 2.00%

> 100%

Benchmark2017

Sewer indicatorsWater indicators20172018

112.01% 12.07%121.06%

0.00%

100.00%

0.00%

1.02%

0.00% 0.00%0.78%

0.00%4.20%

100.00%100.00%

0.00%1.25%

100.00%

2018

28.58%109.52% 23.39%

2018

page 22

annual 2017/18 report - wakool shire · 2018-12-04 · manager, engineering, planning &...

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