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Hurstville City Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2010

“The heart of St George”

Financial Statements 2010

Hurstville City Council

General Purpose Financial Statements for the financial year ended 30 June 2010

Contents

1. Statement by Councillors & Management

2. Primary Financial Statements:

- Income Statement- Statement of Comprehensive Income- Balance Sheet- Statement of Changes in Equity- Statement of Cash Flows

3. Notes to the Financial Statements

4. Independent Auditor's Reports:

- On the Financial Statements (Sect 417 [2])

- On the Conduct of the Audit (Sect 417 [3])

Overview

(i) These financial statements are General Purpose Financial Statements and cover the consolidated operationsfor Hurstville City Council.

(ii) Hurstville City Council is a body corporate of NSW, Australia - being constituted as a Local Government areaby proclamation and is duly empowered by the Local Government Act (LGA) 1993 of NSW.

Council's Statutory Charter is specified in Section 8 of the LGA and includes;

carrying out activities and providing goods, services & facilities appropriate to the current & futureneeds of the Local community and of the wider public

responsibility for administering regulatory requirements under the LGA and other applicable legislation, &

a role in the management, improvement and development of the resources of the local government area.

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

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

(iv) These financial statements were authorised for issue by the Council on 30/09/10.Council has the power to amend and reissue the financial statements.

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8

6971

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3

56

4

2

page 1



Income Statement for the financial year ended 30 June 2010

$ '000

Income from Continuing OperationsRevenue:Rates & Annual ChargesUser Charges & FeesInterest & Investment RevenueOther RevenuesGrants & Contributions provided for Operating Purposes

Grants & Contributions provided for Capital Purposes

Other Income:Net gains from the disposal of assets

Total Income from Continuing Operations

Expenses from Continuing OperationsEmployee Benefits & On-CostsBorrowing CostsMaterials & ContractsDepreciation & AmortisationImpairmentOther ExpensesInterest & Investment Losses

Total Expenses from Continuing Operations

Operating Result from Continuing Operations

Discontinued Operations

Net Profit/(Loss) from Discontinued Operations

Net Operating Result for the Year

Net Operating Result attributable to CouncilNet Operating Result attributable to Minority Interests

Net Operating Result for the year before Grants and

Contributions provided for Capital Purposes

Original Budget as approved by Council - refer Note 16

4,690

3,397

59,204

58,624

(580)

459

23,646

-

15,888

64,676

24,953 -

8,773 -

7,720

57,334

7,660

24

-

3c

-

-

-

(5,903)

7,342

- 15,583

(580)

8,918

(580)

-

4,867

7,342

4c

4a

271

7,342

1,295

(1)

1,295

-

(3,474)

-

1,295

4d

8,127 -

4d

9,035 -

4e

59,984

25,423

16,103 4b-

58,689

Budget (1)

6,120 38,307

2010

180

4,769

1,301

Actual Actual

3b

Notes 2010 2009

7,144 3a 36,129 38,485

6,807

4,518 4,788

3e,f

5

3e,f

- 3c 2,295 3d

4,560 4,999

5,323 7,071

471

This Statement should be read in conjunction with the accompanying Notes. page 3



Statement of Comprehensive Income for the financial year ended 30 June 2010

$ '000

Net Operating Result for the year (as per Income statement)

Other Comprehensive IncomeGain (loss) on revaluation & impairment of I,PP&EGain (loss) on revaluation of available-for-sale investmentsGain (loss) on revaluation of other reservesRealised (gain) loss on available-for-sale investments recognised in P&LRealised (gain) loss from other reserves recognised in P&LOther Movements in Reserves

Total Other Comprehensive Income for the year

Total Comprehensive Income for the Year

Total Comprehensive Income attributable to CouncilTotal Comprehensive Income attributable to Minority Interests

-

Actual

86,324

93,666

- -

-

20b (ii)

-

(580)

-

2009

-

-

(580)

20b (ii)

20b (ii)20b (ii)

-

(580)

- -

20b (ii) 86,324

Notes

7,342

Actual 2010

20b (ii)

93,666 -

- -




Balance Sheet as at 30 June 2010

$ '000

ASSETSCurrent AssetsCash & Cash EquivalentsInvestmentsReceivablesInventoriesOtherTotal Current Assets

Non-Current AssetsInvestmentsReceivablesInfrastructure, Property, Plant & EquipmentInvestment PropertyIntangible AssetsTotal Non-Current Assets

TOTAL ASSETS

LIABILITIESCurrent LiabilitiesPayablesProvisionsTotal Current Liabilities

Non-Current LiabilitiesProvisionsTotal Non-Current Liabilities

TOTAL LIABILITIES

Net Assets

EQUITYRetained EarningsRevaluation ReservesCouncil Equity InterestMinority Equity Interest

Total Equity

7,617

29,412 718

2009

9,300

384,181

438,817

20,782

8,209 10

20,621 17,242

345,444

169

207,425

17,941

129 7 3,007

409,405

12,412

121,101

226

6b

Notes

6a

Actual

352 8

15,698 -

161

418,035 552,869

161

418,035

552,869 -

418,035

10

552,869

20

20

17,411

296,934

-

10

169

8,136

517,266 9

25

15,832

9,106

570,280

537,486

14

131

32,794

257 4,000

7

6b

2010

8

Actual

142

25,207 3,902

3,191




Statement of Changes in Equity for the financial year ended 30 June 2010

$ '000

Opening Balance (as per Last Year's Audited Accounts)

a. Correction of Prior Period Errors

b. Changes in Accounting Policies (prior year effects)

Revised Opening Balance (as at 1/7/09)

c. Net Operating Result for the Year

d. Other Comprehensive Income

- Revaluations : IPP&E Asset Revaluation Reserve

- Revaluations: Other Reserves

- Transfers to Income Statement

- Other Movements

Other Comprehensive Income

Total Comprehensive Income (c&d)

e. Distributions to/(Contributions from) Minority Interests

f. Transfers between Equity

Equity - Balance at end of the reporting period

$ '000

Opening Balance (as per Last Year's Audited Accounts)


b. Changes in Accounting Policies (prior year effects)

Revised Opening Balance (as at 1/7/08)

c. Net Operating Result for the Year

d. Other Comprehensive Income

- Revaluations : IPP&E Asset Revaluation Rsve

- Revaluations: Other Reserves

- Transfers to Income Statement

- Other Movements

Other Comprehensive Income

Total Comprehensive Income (c&d)



Equity - Balance at end of the reporting period

-

Retained

Interest

-

-

- 418,615

418,035

-

-

(580)

-

-

418,615

-

Reserves

418,035

-

-

-

-

-

459,203

-

-

86,324

552,869

7,342

-

Interest

Council

InterestEquity

-

Total

-

296,934 121,101

-

-

-

-

- -

-

Equity

-

Minority

-

-

-

-

-

-

Total

41,168

EquityMinority

418,035

-

20 (c) -

20b (ii) -

(580)

20 (d)

459,203

86,324

297,514

552,869

7,342 -

-

121,101

-

-

86,324

93,666

(580)

-

418,615

-

-

20b (ii)

20b (ii)

-

20b (ii)

-

-

-

-

-

418,035

297,514

-

- -

-

(580)

-

-

- -

-

-

-

(580)

-

-

-

Council

-

-

86,324

-

-

-

121,101

86,324

86,324

-

-

- 41,168

(Refer 20b)

Equity

-

-

93,666

-

Notes

338,102

- 20 (d)

20 (c)

7,342

296,934

Earnings

345,444

7,342

20b (ii)

20b (ii) -

-

2010

-

20b (ii)

20b (ii)

41,168

-

-

-

Notes

- -

86,324

Earnings

207,425

-

-

- -

-

-

418,615

-

-

-

121,101

Retained Reserves

121,101

(Refer 20b)

(580)

Interest

-

-

2009




Statement of Cash Flows for the financial year ended 30 June 2010

$ '000

Cash Flows from Operating ActivitiesReceipts:

Rates & Annual ChargesUser Charges & FeesInvestment & Interest Revenue ReceivedGrants & ContributionsOtherPayments:

Employee Benefits & On-CostsMaterials & ContractsBorrowing CostsOther

Net Cash provided (or used in) Operating Activities

Cash Flows from Investing ActivitiesReceipts:

Sale of Investment SecuritiesSale of Infrastructure, Property, Plant & EquipmentPayments:

Purchase of Investment SecuritiesPurchase of Investment PropertyPurchase of Infrastructure, Property, Plant & Equipment

Net Cash provided (or used in) Investing Activities

Cash Flows from Financing ActivitiesNil

Net Cash Flow provided (used in) Financing Activities

Net Increase/(Decrease) in Cash & Cash Equivalents

plus: Cash & Cash Equivalents - beginning of year

Cash & Cash Equivalents - end of the year

Additional Information:

plus: Investments on hand - end of year

Total Cash, Cash Equivalents & Investments

Please refer to Note 11 for additional cash flow information.

6b

12,520

7,534 3,762

(12,976) -

(16,898)

36,052

2009 Budget

38,307

(9,035)

Notes

-

2010

6,120 1,301

4,788 9,287

2010

7,141 9,723

(143)

849

(20,300)

(5,117) -

(23,518)

18,016

20,255

(25,152) (17,561) (16,103)

(24,323)

20,311

11b

2,981 621

10,342 12,316

948

(11,578) (29,523) - - (22,002)

(7,976)

5,366

2,366

-

11a

3,000 11a

Actual

38,340

Actual

7,349

7,050 2,083

(28,862)

18,463

-

7,617

(10,846) (3,715)

(16,031)

-

33,109

29,207

(134) (15,154)

27,241

34,858

3,902 7,617




Notes to the Financial Statements for the financial year ended 30 June 2010

Contents of the Notes accompanying the Financial Statements

Details

Summary of Significant Accounting PoliciesCouncil Functions / Activities - Financial InformationCouncil Functions / Activities - Component DescriptionsIncome from Continuing OperationsExpenses from Continuing OperationsGains or Losses from the Disposal of AssetsCash & Cash Equivalent AssetsInvestmentsRestricted Cash, Cash Equivalents & Investments - detailsReceivablesInventories & Other AssetsInfrastructure, Property, Plant & EquipmentExternally Restricted Infrastructure, Property, Plant & EquipmentInfrastructure, Property, Plant & Equipment - Current Year ImpairmentsPayables, Borrowings & ProvisionsDescription of (& movements in) ProvisionsStatement of Cash Flows - Additional InformationCommitments for ExpenditureStatement of Performance Measures - Indicators (Consolidated)

Statement of Performance Measures - Graphs (Consolidated)

Statement of Performance Measures - Indicators (by Fund)

Investment PropertiesFinancial Risk ManagementMaterial Budget VariationsStatement of Developer ContributionsContingencies and Other Liabilities/Assets not recognisedControlled Entities, Associated Entities & Interests in Joint VenturesEquity - Retained Earnings and Revaluation Reserves

Financial Result & Financial Position by Fund"Held for Sale" Non Current Assets & Disposal GroupsEvents occurring after Balance Sheet dateDiscontinued OperationsIntangible AssetsReinstatement, Rehabilitation & Restoration Liabilities

Additional Disclosures

Council Information & Contact Details

n/a - not applicable

67

57

66

60

66

68

67

414243

44

66

66

52

64

48

43

64

46

62

50

53

45

n/a

51

40

35

925262732

363638

7

8

9(a)

9(b)

27

12

13a

20

25

23

Note

22

14

10(a)

10(b)

17

18

4

Page

1

19

15

16

11

2(a)

3

2(b)

6(b)

6(a)

5

26

6(c)

9(c)

21

24

13b

page 8


Hurstville City Council Notes to the Financial Statements for the financial year ended 30 June 2010

Note 1. Summary of Significant Accounting Policies

page 9

The principal accounting policies adopted by Council in the preparation of these financial statements are set out below in order to assist in its general understanding. Under Australian Accounting Standards, accounting policies are defined as those specific principles, bases, conventions, rules and practices applied by a reporting entity (in this case Council) in preparing and presenting it’s financial statements. (a) Basis of preparation (i) Background These financial statements are general purpose financial statements which have been prepared in accordance with; Australian Accounting Standards, Urgent Issues Group Interpretations, the Local Government Act (1993) and Regulation,

and the Local Government Code of Accounting

Practice and Financial Reporting. (ii) Compliance with International Financial Reporting Standards (IFRSs) Because Australian Accounting Standards (AASB's) are sector neutral, some standards either:

(a) have local Australian content and prescription that is specific to the Not-For-Profit sector (including Local Government) which are not in compliance with IFRS’s, or

(b) specifically exclude application by Not for Profit entities.

Examples include; excluding Local Government from applying AASB

120 (IAS 20) for Grant Accounting and AASB 118 (IAS 18) for Segment Reporting, &

different requirements on (a) Impairment of

Assets relating to Not-For-Profit AASB 136 (IAS 36) and (b) AASB 116 (IAS 16) regarding accounting for the Revaluation of Assets.

Accordingly in preparing these financial statements and accompanying notes, Council has been unable to comply fully with International Accounting Standards, but it has complied fully with Australian Accounting Standards.

Under the Local Government Act, Regulations and Local Government Code of Accounting Practice & Financial Reporting, it should be noted that Councils in NSW only have a requirement to comply with Australian Accounting Standards. (iii) Basis of Accounting These financial statements have been prepared under the historical cost convention except for (i) financial assets and liabilities at fair value through profit or loss, available-for-sale financial assets and investment properties which are all valued at fair value, (ii) the write down of any Asset on the basis of Impairment (if warranted) and (iii) certain classes of Infrastructure, property, plant & equipment that are accounted for at fair valuation. The accrual basis of accounting has also been applied in their preparation. (iv) Changes in Accounting Policies Council’s accounting policies have been consistently applied to all the years presented, unless otherwise stated. Unless otherwise stated, there have also been no changes in accounting policies when compared with previous financial statements. (v) Critical Accounting Estimates The preparation of these financial statements requires the use of certain critical accounting estimates (in conformity with AASB's). It also requires Council management to exercise their judgement in the process of applying Council’s accounting policies. (vi) Financial Statements Presentation The Council has applied the revised AASB 101, Presentation of Financial Statements which became effective on 1 January 2009.



Note 1. Summary of Significant Accounting Policies (continued)

page 10

The revised standard requires the separate presentation of a statement of comprehensive income and a statement of changes in equity. All non-owner changes in equity must now be presented in the statement of comprehensive income. As a consequence, the Council had to change the presentation of its financial statements. Comparative information has been re-presented so that it is also in conformity with the revised standard. (b) Revenue recognition Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Council’s activities as described below. Council bases any estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue is measured at the fair value of the consideration received or receivable. Revenue is measured on major income categories as follows: Rates, Annual Charges, Grants and Contributions Rates, annual charges, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over the assets comprising these receipts. Control over assets acquired from rates and annual charges is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates. A provision for the impairment on rates receivables has not been established as unpaid rates represent a charge against the rateable property that will be recovered when the property is next sold.

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and is valued at their fair value at the date of transfer. Income from Contributions is recognised when the Council either obtains control of the contribution or the right to receive it, (i) it is probable that the economic benefits comprising the contribution will flow to the Council and (ii) the amount of the contribution can be measured reliably. Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in Note 3(g). Note 3(g) also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year. The Council has obligations to provide facilities from contribution revenues levied on developers under the provisions of S94 of the EPA Act 1979. Whilst Council generally incorporates these amounts as part of a Development Consents Order, such developer contributions are only recognised as income upon their physical receipt by Council, due to the possibility that individual Development Consents may not be acted upon by the applicant and accordingly would not be payable to Council. Developer contributions may only be expended for the purposes for which the contributions were required but the Council may apply contributions according to the priorities established in work schedules. A detailed Note relating to developer contributions can be found at Note 17. User Charges, Fees and Other Income User charges, fees and other income (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. A provision for the impairment of these receivables is recognised when collection in full is no longer probable.




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A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided as at balance date. Sale of Infrastructure, Property, Plant and Equipment The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer. Interest and Rents Rents are recognised as revenue on a proportional basis when the payment is due, the value of the payment is notified, or the payment is received, whichever first occurs. Interest Income from Cash & Investments is accounted for using the Effective Interest method in accordance with AASB 139. (c) Principles of Consolidation These financial statements incorporate (i) the assets and liabilities of Council and any entities (or operations) that it controls (as at 30/6/10) and (ii) all the related operating results (for the financial year ended the 30th June 2010). The financial statements also include Council’s share of the assets, liabilities, income and expenses of any Jointly Controlled Operations under the appropriate headings. In the process of reporting on Council’s activities as a single unit, all inter-entity year end balances and reporting period transactions have been eliminated in full between Council and its controlled entities. (i) The Consolidated Fund In accordance with the provisions of Section 409(1) of the LGA 1993, all money and property received by Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund. The Consolidated Fund and other entities through which the Council controls resources to carry on its functions have been included in the financial statements forming part of this report.

The following entities have been included as part of the Consolidated Fund: General Purpose Operations (ii) The Trust Fund In accordance with the provisions of Section 411 of the Local Government Act 1993 (as amended), a separate and distinct Trust Fund is maintained to account for all money and property received by the Council in trust which must be applied only for the purposes of or in accordance with the trusts relating to those monies. Trust monies and property subject to Council’s control have been included in these statements. Trust monies and property held by Council but not subject to the control of Council, have been excluded from these statements. A separate statement of monies held in the Trust Fund is available for inspection at the Council office by any person free of charge. (iii) Joint Venture Entities Council currently does not have any joint ventures. (iv) Associated Entities Council currently does not have any Associated Entities (v) County Councils Council is not a member of any County Councils.

(d) Leases All Leases entered into by Council are reviewed and classified on inception date as either a Finance Lease or an Operating Lease. Finance Leases Leases of property, plant and equipment where the Council has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property




page 12

and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings. Each lease payment is allocated between the liability outstanding and the recognition of a finance charge. The interest element of the finance charge is costed to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Property, plant and equipment acquired under finance leases is depreciated over the shorter of each leased asset’s useful life and the lease term. Operating Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Lease income from operating leases is recognised in income on a straight-line basis over the lease term. (e) Cash and Cash Equivalents Cash and cash equivalents includes; cash on hand,

deposits held at call with financial institutions,

other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and

bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet but are incorporated into Cash & Cash Equivalents for presentation of the Cash Flow Statement.

(f) Investments and Other Financial Assets Council (in accordance with AASB 139) classifies each of its investments into one of the following categories for measurement purposes: financial assets at fair value through profit or

loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. Each classification depends on the purpose/intention for which the investment was acquired & at the time it was acquired. Management determines each Investment classification at the time of initial recognition and re-evaluates this designation at each reporting date. (i) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets that are “held for trading”. A financial asset is classified in the “held for trading” category if it is acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are primarily classified as current assets as they are primarily held for trading &/or are expected to be realised within 12 months of the balance sheet date. (ii) Loans and receivables Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Council provides money, goods or services directly to a debtor with no intention (or in some cases ability) of selling the resulting receivable. They are included in current assets, except for those with maturities greater than 12 months after the




page 13

balance sheet date which are classified as non-current assets. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. In contrast to the “Loans & Receivables” classification, these investments are generally quoted in an active market. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. Investments must be designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term. Accordingly, this classification principally comprises marketable equity securities, but can include all types of financial assets that could otherwise be classified in one of the other investment categories. They are generally included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date or the term to maturity from the reporting date is less than 12 months. Financial Assets – Reclassification Council may choose to reclassify a non-derivative trading financial asset out of the held-for-trading category if the financial asset is no longer held for the purpose of selling it in the near term. Financial assets other than loans and receivables are permitted to be reclassified out of the held-for-trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near term.

Council may also choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-for-sale categories if it has the intention and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification. Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively. General Accounting & Measurement of Financial Instruments: (i) Initial Recognition Investments are initially recognised (and measured) at fair value, plus in the case of investments not at “fair value through profit or loss”, directly attributable transactions costs Purchases and sales of investments are recognised on trade-date - the date on which the Council commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council has transferred substantially all the risks and rewards of ownership. (ii) Subsequent Measurement Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets classified as “fair value through profit or loss” category are included in the income statement in the period in which they arise.




page 14

Unrealised gains and losses arising from changes in the fair value of non monetary securities classified as "available-for-sale" are recognised in equity in the available-for-sale investments revaluation reserve. When securities classified as "available-for-sale" are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities. Impairment Council assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement. (iii) Types of Investments Council has an approved Investment Policy in order to undertake its investment of money in accordance with (and to comply with) Section 625 of the Local Government Act and S212 of the LG (General) Regulation 2005. Investments are placed and managed in accordance with the Policy and having particular regard to authorised investments prescribed under the Local Government Investment Order. Council maintains its investment Policy in compliance with the Act and ensures that it or its representatives exercise care, diligence and skill that a prudent person would exercise in investing Council funds.

Council amended its policy following revisions to the Investment Order arising from the Cole Inquiry recommendations. Certain investments the Council holds are no longer prescribed (eg. managed funds, CDOs, and equity linked notes), however they have been retained under grandfathering provisions of the Order. These will be disposed of when most financially advantageous to Council. (g) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. If the market for a financial asset is not active (and for unlisted securities), the Council establishes fair value by using valuation techniques. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments.




page 15

(h) Receivables Receivables are initially recognised at fair value and subsequently measured at amortised cost, less any provision for impairment. Receivables (excluding Rates & Annual Charges) are generally due for settlement no more than 30 days from the date of recognition. The collectibility of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off in accordance with Council’s policy. A provision for impairment (ie. an allowance account) relating to receivables is established when there is objective evidence that the Council will not be able to collect all amounts due according to the original terms of each receivable. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Impairment losses are recognised in the Income Statement within other expenses. When a receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement. (i) Inventories Raw Materials and Stores, Work in Progress and Finished Goods Raw materials and stores, work in progress and finished goods in respect of business undertakings are all stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.

Costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories held in respect of non-business undertakings have been valued at cost subject to adjustment for loss of service potential. Land Held for Resale/Capitalisation of Borrowing Costs Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification 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 the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. (j) Infrastructure, Property, Plant and Equipment (I,PP&E) Acquisition of assets Council’s non current assets are being progressively revalued to fair value in accordance with a staged implementation as advised by the Division of Local Government. At balance date, the following classes of I,PP&E were stated at their Fair Value; - Investment Properties – refer Note 1(p), - Operational Land (External Valuation)

- Buildings – Specialised/Non Specialised

(Externall Valuation)




page 16

- Plant and Equipment (as approximated by depreciated historical cost)

- Roads Assets incl. roads, bridges & footpaths

(External Valuation) - Drainage Assets (External Valuation) The only remaining asset class that is to revalued in a future reporting period is; - 2010/11: Community land, land improvements,

other structures and other assets Until the designated future reporting periods, the above remaining asset class is stated at cost (or deemed cost) less accumulated depreciation and any accumulated impairment losses. Initial Recognition On initial recognition, an assets cost is measured at its fair value, plus all expenditure that is directly attributable to the acquisition. Where settlement of any part of an asset’s cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of recognition (ie. date of exchange) of the asset to arrive at fair value. The discount rate used is the Council’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Where infrastructure, property, plant and equipment assets are acquired for no cost or for an amount other than cost, the assets are recognised in the financial statements at their fair value at acquisition date - being the amount that the asset could have been exchanged between knowledgeable willing parties in an arm’s length transaction. Subsequent costs 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 cost of the item can be measured reliably.

All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Asset Revaluations (including Indexation) In accounting for Asset Revaluations relating to Infrastructure, Property, Plant & Equipment: 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 recognised via the profit or loss, then increase is first recognised in profit or loss.

Decreases that reverse previous increases of the

same asset are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the asset, with all other decreases charged to the Income statement.

Water and sewerage network assets are indexed annually between full revaluations in accordance with the latest indices provided in the NSW Office of Water Rates Reference Manual. For all other assets, Council assesses at each reporting date whether there is any indication that a revalued asset’s carrying amount may differ materially from that which would be determined if the asset were revalued at the reporting date. If any such indication exists, Council determines the asset’s fair value and revalues the asset to that amount. Full revaluations are undertaken for all assets on a 5 year cycle. Capitalisation Thresholds Items of infrastructure, property, plant and equipment are not capitalised unless their cost of acquisition exceeds the following; Land - council land 100% Capitalised - open space 100% Capitalised - land under roads (purchases after 30/6/08) 100% Capitalised




page 17

Plant & Equipment Office Furniture > $1,000 Office Equipment > $1,000 Other Plant &Equipment > $1,000 Buildings & Land Improvements Park Furniture & Equipment > $1,000 Building - construction/extensions 100% Capitalised - renovations > $1,000 Other Structures > $1,000 Stormwater Assets Drains & Culverts 100% Capitalised Other 100% Capitalised Transport Assets Road construction & reconstruction 100% Capitalised Reseal/Re-sheet & major repairs: 100% Capitalised Bridge construction & reconstruction 100% Capitalised Depreciation Depreciation on Council's infrastructure, property, plant and equipment assets is calculated using the straight line method in order to allocate an assets cost (net of residual values) over its estimated useful life. Land is not depreciated. Estimated useful lives for Council's I,PP&E include: Plant & Equipment - Office Equipment 3 to 10 years - Office furniture 10 to 20 years - Vehicles 5 to 8 years - Heavy Plant/Road Making equip. 5 to 8 years - Other plant and equipment 5 to 15 years Other Equipment - Playground equipment 10 years - Benches, seats etc 10 years Buildings - Buildings 0 to 60 years remaining useful life as per independent valuation 30/06/08

Stormwater Drainage - Drains 80 years - Culverts 80 years Transportation Assets - Sealed Roads : Surface 50 to 100 years - Sealed Roads : Structure 50 to 100 years - Bridge : Concrete 100 years - Kerb, Gutter & Paths 50 years All asset residual values and useful lives are reviewed and adjusted (where appropriate), at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount – refer Note 1(s) on Asset Impairment. Disposal and De-recognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in Council’s Income Statement in the year the asset is derecognised. (k) Land Land (other than Land under Roads) is in accordance with Part 2 of Chapter 6 of the Local Government Act (1993) classified as either Operational or Community. This classification of Land is disclosed in Note 9(a). (l) Land under roads Land under roads is land under roadways and road reserves including land under footpaths, nature strips and median strips.




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Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051. Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 – Property, Plant and Equipment. (m) Intangible Assets IT Development and Software Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. Amortisation is calculated on a straight line bases over periods generally ranging from 3 to 5 years. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where Council has an intention and ability to use the asset. (n) Crown Reserves Crown Reserves under Council’s care and control are recognised as assets of the Council. While ownership of the reserves remains with the Crown, Council retains operational control of the reserves and is responsible for their 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 Council and revenues relating the reserves are recognised within Council’s Income Statement. Representations are currently being sought across State and Local Government to develop a consistent

accounting treatment for Crown Reserves across both tiers of government. (o) Rural Fire Service assets Under section 119 of the Rural Fires Act 1997, “all fire fighting equipment purchased or constructed wholly or from money to the credit of the Fund is to be vested in the council of the area for or on behalf of which the fire fighting equipment has been purchased or constructed”. At present, the accounting for such fire fighting equipment is not treated in a consistent manner across all Councils. Until such time as discussions on this matter have concluded and the legislation changed, Council will continue to account for these assets as it has been doing in previous years, which is to incorporate the assets, their values and depreciation charges within these financial statements. (p) Investment property Investment property comprises land &/or buildings that are principally held for long-term rental yields, capital gains or both that is not occupied by Council. Investment property is carried at fair value, representing an in-house valuation based on a discounted cash flow analysis. Annual changes in the fair value of Investment Properties are recorded in the Income Statement as part of “Other Income”. Full revaluations are carried out every three years with an appropriate index utilised each year in between the full revaluations. The last full revaluation for Council’s Investment Properties was dated 30/06/2008.




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(q) Provisions for close down, restoration and for environmental clean up costs – including Tips and Quarries As Council does not own any Tips, Quarries etc it currently does not have any provisions for Close down, restoration or remediation costs. (r) Non-Current Assets (or Disposal Groups) “Held for Sale” & Discontinued Operations Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of either (i) their carrying amount and (ii) fair value less costs to sell, if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The exception to this is plant and motor vehicles which are turned over on a regular basis. Plant and motor vehicles are retained in Non Current Assets under the classification of Infrastructure, Property, Plant and Equipment - unless the assets are to be traded in after 30 June and the replacement assets were already purchased and accounted for as at 30 June. For any assets or disposal groups classified as Non-Current Assets “held for sale”, an impairment loss is recognised at any time when the assets carrying value is greater than its fair value less costs to sell. Non-current assets “held for sale” are not depreciated or amortised while they are classified as “held for sale”. Non-current assets classified as “held for sale” are presented separately from the other assets in the balance sheet. A Discontinued Operation is a component of the entity that has been disposed of or is classified as “held for sale” and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the income statement.

(s) Impairment of assets All Council's I,PP&E is subject to an annual assessment of impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For non-cash generating assets of Council such as roads, drains, public buildings etc - value in use is represented by the “deprival value” of the asset which is approximated as it’s written down replacement cost. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill & other Intangible Assets that have an indefinite useful life and are not subject to amortisation are tested annually for impairment. (t) Payables These amounts represent liabilities and include goods and services provided to the Council prior to the end of financial year which are unpaid. The amounts for goods and services are unsecured and are usually paid within 30 days of recognition. (u) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Amortisation results in any difference between the proceeds (net of transaction costs) and the redemption amount being recognised in the Income




page 20

Statement over the period of the borrowings using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. (v) Borrowing costs Borrowing costs are expensed, except to the extent that they are incurred during the construction of qualifying assets. Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. (w) Provisions Provisions for legal claims, service warranties and other like liabilities are recognised when: Council has a present legal or constructive

obligation as a result of past events; it is more likely than not that an outflow of

resources will be required to settle the obligation; and

the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of 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 to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. (x) Employee benefits (i) Short Term Obligations Short term employee benefit obligations include liabilities for wages and salaries (including non-monetary benefits), annual leave and vesting sick leave expected to be settled within the 12 months after the reporting period. Leave liabilities are recognised in the provision for employee benefits in respect of employees’ services up to the reporting date with other short term employee benefit obligations disclosed under payables.. These provisions are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non vesting sick leave are recognised at the time when the leave is taken and measured at the rates paid or payable, and accordingly no Liability has been recognised in these reports. Wages & salaries, annual leave and vesting sick leave are all classified as Current Liabilities. (ii) Other Long Term Obligations The liability for all long service and annual leave (which is not expected to be settled within the 12 months after the reporting period) are recognised in the provision for employee benefits in respect of services provided by employees up to the reporting date. These liabilities are measured at the present value of the expected future payments to be made using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.




page 21

Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match as closely as possible, the estimated future cash outflows. Due to the nature of when and how Long Service Leave can be taken, all Long Service Leave for employees with 5 or more years of service has been classified as Current, as it has been deemed that Council does not have the unconditional right to defer settlement beyond 12 months – even though it is not anticipated that all employees with more than 5 years service (as at reporting date) will apply for and take their leave entitlements in the next 12 months. (iii) Retirement benefit obligations All employees of the Council are entitled to benefits on retirement, disability or death. Council contributes to various defined benefit plans and defined contribution plans on behalf of its employees. Defined Benefit Plans A liability or asset in respect of defined benefit superannuation plans would ordinarily be recognised in the balance sheet, and measured as the present value of the defined benefit obligation at the reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligation is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. However, when this information is not reliably available, Council can account for its obligations to defined benefit plans on the same basis as its obligations to defined contribution plans – i.e. as an expense when they become payable. Council is party to an Industry Defined Benefit Plan under the Local Government Superannuation

Scheme, named the “Local Government Superannuation Scheme – Pool B” This Scheme has been deemed to be a “multi employer fund” for the purposes of AASB 119. Sufficient information is not available to account for the Scheme as a defined benefit plan (in accordance with AASB 119) because the assets to the scheme are pooled together for all Councils. Accordingly, Council’s contributions to the scheme for the current reporting year have been recognised as an expense and disclosed as part of Superannuation Expenses at Note 4(a). The last valuation of the Scheme was performed by Mr Martin Stevenson BSc, FIA, FIAA on 16 February 2010 and covers the period ended 30 June 2009. However the position is monitored annually and the Actuary has estimated a deficit of $286,059,000 as at 30th June 2010. Effective from 1 July 2009, employers are required to contribute at twice the “notional” or long term cost for a period of up to ten years in order the rectify this deficit. The share of this deficit that can be broadly attributed to the employer was estimated to be in the order of $2,340,564 as at 30 June 2010. Council has disclosed a contingent liability in note 18 to reflect the possible obligation that may arise should the Scheme require immediate payment to correct the deficiency. Define Contribution Plans Contributions to Defined Contribution Plans are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. (iv) Employee Benefit On-Costs Council has recognised at year end the aggregate on-cost liabilities arising from employee benefits, and in particular those on-cost liabilities that will arise when payment of current employee benefits is made in future periods. These amounts include Superannuation and Workers Compensation expenses which will be payable upon the future payment of certain Leave Liabilities accrued as at 30/6/10.




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(y) Self insurance Council does not self insure. (z) Allocation between current and non-current assets & liabilities In the determination of whether an asset or liability is classified as current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. Exceptions In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 months (such as vested long service leave), the liability is classified as current even if not expected to be settled within the next 12 months. In the case of inventories that are “held for trading”, these are also classified as current even if not expected to be realised in the next 12 months. (aa) Taxes The Council is exempt from both Commonwealth Income Tax and Capital Gains Tax. Council does however have to comply with both Fringe Benefits Tax and Goods and Services Tax (GST). Goods & Services Tax (GST) Income, expenses and assets are all recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the revenue / expense. Receivables and payables within the Balance Sheet are stated inclusive of any applicable GST.

The net amount of GST recoverable from or payable to the ATO is included as a current asset or current liability in the Balance Sheet. Operating cash flows within the Cash Flow Statement are on a gross basis, ie. they are inclusive of GST where applicable. Investing and Financing cash flows are treated on a net basis (where recoverable form the ATO), ie. they are exclusive of GST. Instead, the GST component of investing and financing activity cash flows which are recoverable from or payable to the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from (or payable to) the ATO. (ab) New accounting standards and UIG interpretations Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting periods ending 30 June 2010. Council has not adopted any of these standards early. Council’s assessment of the impact of these new standards and interpretations is set out below. Applicable to Local Government with implications: AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (effective from 1 January 2013) AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is likely to affect Council’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption. Council is yet to assess its full impact. However, initial indications are that it may affect Council’s accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive




page 23

income if they relate to equity investments that are not held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to be recognised directly in profit or loss. Applicable to Local Government but no implications for Council; AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-Settled Share-based Payment Transactions [AASB 2] (effective from 1 January 2010) The amendments made by the AASB to AASB 2 confirm that an entity receiving goods or services in a group share-based payment arrangement must recognise an expense for those goods or services regardless of which entity in the group settles the transaction or whether the transaction is settled in shares or cash. They also clarify how the group share-based payment arrangement should be measured, that is, whether it is measured as an equity- or a cash-settled transaction. AASB 2009-10 Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB 132] (effective from 1 February 2010) In October 2009 the AASB issued an amendment to AASB 132 Financial Instruments: Presentation which addresses the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. Provided certain conditions are met, such rights issues are now classified as equity regardless of the currency in which the exercise price is denominated. Previously, these issues had to be accounted for as derivative liabilities. The amendment must be applied retrospectively in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement (effective from 1 January 2011)

In December 2009, the AASB made an amendment to Interpretation 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The amendment removes an unintended consequence of the interpretation related to voluntary prepayments when there is a minimum funding requirement in regard to the entity's defined benefit scheme. It permits entities to recognise an asset for a prepayment of contributions made to cover minimum funding requirements. Council does not make any such prepayments. The amendment is therefore not expected to have any impact on Council. AASB Interpretation 19 Extinguishing financial liabilities with equity instruments and AASB 2009-13 Amendments to Australian Accounting Standards arising from Interpretation 19 (effective from 1 July 2010) AASB Interpretation 19 clarifies the accounting when an entity renegotiates the terms of its debt with the result that the liability is extinguished by the debtor issuing its own equity instruments to the creditor (debt for equity swap). It requires a gain or loss to be recognised in profit or loss which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. Applicable to Local Government but not relevant to Council at this stage; None Not applicable to Local Government per se; Revised AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian Accounting Standards (effective from 1 January 2011) In December 2009 the AASB issued a revised AASB 124 Related Party Disclosures. It is effective for accounting periods beginning on or after 1 January 2011 and must be applied retrospectively.




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The amendment removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities and clarifies and simplifies the definition of a related party. (ac) Rounding of amounts Unless otherwise indicated, amounts in the financial statements have been rounded off to the nearest thousand dollars. (ad) Comparative Figures To ensure comparability with the current reporting period’s figures, some comparative period line items and amounts may have been reclassified or individually reported for the first time within these financial statements and/or the notes. (ae) Disclaimer Nothing contained within these statements may be taken to be an admission of any liability to any person under any circumstance.



Note 2(a). Council Functions / Activities - Financial Information

1. Includes: Rates & Annual Charges (incl. Ex-Gratia), Untied General Purpose Grants & Unrestricted Interest & Investment Income.

(2,003)

2,908 (555) (788)

(1,655)

-

(1,815)

2010

Actual

-

2009

Actual Actual

Grants included in Income from Continuing

2009

Budget Actual Actual


2009

Budget

2010

Original

2010

3,355

2010

4,864

Original

2,004 8

Actual

2009

Original

Actual Actual

2010

266

(16)

$ '000 Income, Expenses and Assets have been directly attributed to the following Functions / Activities.

Details of these Functions/Activities are provided in Note 2(b).

Income from Continuing Operations

Expenses from Continuing Operations

Total Assets held (Current &

Non-current) Functions/Activities

Budget

-

2009

(4,510)

Governance

Built 2,800 2,455

1

2010

-

2010

1,823

Community Life

5,176

4,631 4,769 4,231

3,243

1,655

1,956

7,685

(2,543)

Economic

Executive and Corporate Leadership 779

4,607

(5,119)

1,648

9,141 9,888 9,445

Natural

1,251

(2,648)

(10,978) 11,757

2,707 136 413 138

1,129

10,119

2,826 3,078

2,784

3,528

2,956

18,649

15,385

3,149

11,622

10,735 9,816 Transport, Traffic and Infrastructure 3,768 4,644 5,554

Safety and Health 10,578 (4,299) 10,777 9,397 (4,807) 13,928 15,076

(5,172)

(10,371)

(6,967)

(4,531) 190

438,817

38,269

157,184

75,700

570,280

290,962 166,189

Actual

253

565 4,672

Actual

2010

37,554

69,688

152,738

(2,569)

450

1,203 1,026

73

(17,520)

(5,214)

889

3,500 2,781

3,834 4,942

(323)

(4,565)

- -

5

5,015

170

626

28,147

58,624

Operating Result from

30,477 Joint Ventures (using the Equity Method) - -

58,689 57,334

- -

64,676 59,984 Continuing Operations

32,682

59,204

(2,572) -

61,776

1,295

32,115 -

(30,820)

5,529

7,087

32,682 -

(33,629) (25,340) 2,544

570,280

- -

Share of gains/(losses) in Associates &

General Purpose Income 1 32,115

27,869 Total Functions & Activities 31,994

Financial S

tatements 2010

- 2,985 2,531

9,618 438,817

- - -

7,342 (580)

33,049

page 25

58,689 57,334

- - - -




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

BUILT HORIZON

COMMUNITY LIFE HORIZON

ECONOMIC HORIZON

EXECUTIVE AND CORPORATE LEADERSHIP

NATURAL HORIZON

SAFETY AND HEALTH HORIZON

TRANSPORT, TRAFFIC AND INFRASTRUCTURE HORIZON

Costs relating to the Council’s role as a component of democratic government, including elections, membersfees and expenses, subscriptions to local authority associations, meetings of council and policy makingcommittees, area representation and public disclosure and compliance, together with related administrationcosts.

Goal: A built environment that reflects the character of Hurstville.

Golf Course, Tennis Courts, Aquatic Leisure Centre, Library Services, Historical – Museum, CleaningCommunity Centres, Festivals, Entertainment Centre, Children Services, Community Services, CommunityCentres, Senior Citizens, Community Grants.

Strategic Planning, Development Coordination, Development Assessment.

Goal: A diverse and harmonious city with a strong sense of community, providing a range of social, cultural,education and leisure opportunities.

Goal: To support the development of the Hurstville CBD as a regional centre, and the other commercial andemployment centres as a vibrant mix of retail and business activities, to ensure the sustainable growth ofemployment and business opportunities.

Property Portfolio, CBD Masterplan, Town Centres.

Goal: A highly effective and efficient organisation providing responsive and relevant service. An open andaccountable organisation that encourages community members to participate, exchange views and influencepolicy and decision making.

Community Liaison, Customer Service, Financial Services, Administration, Management Information Services,Records Management, Corporate Planning, Risk Management, Supply, Executive Support, Administration.

Goal: A sustainable city that protects and enhances the natural environment for present and future

Parks, gardens and reserves. Environmental Science and Sustainability.

Drainage, Road and Driveway Construction, Infrastructure Maintenance and Repair, Traffic Management andRoad Safety, Street Lighting, Car Parking, Transport Planning.

Goal: A safe and healthy Hurstville for all sectors of the community.

Waste Services, Fire and Emergency Services, Animal Control, Enforcement of Regulations, Street & GutterCleaning, Public Conveniences, Environmental Health and Building.

Goal: An accessible with sustainable transport networks and well maintained infrastructure that meetscommunity expectations.

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Note 3. Income from Continuing Operations

$ '000

(a). Rates & Annual Charges

Ordinary RatesResidentialBusiness

Total Ordinary Rates

Special RatesTown Improvement

Total Special Rates

Annual Charges (pursuant to s.496 & s.501)

Domestic Waste Management ServicesWaste Management Services (non-domestic)

Total Annual Charges

TOTAL RATES & ANNUAL CHARGES

Council has used 2007 year valuations provided by the NSW Valuer General in calculating its rates.

38,485

9,410

28,603 27,425

704

8,248

36,129

472

7,574

456

456

674

472

Actual

22,404 5,021

Actual 2009

23,362

8,706

5,241

2010 Notes

page 27




Note 3. Income from Continuing Operations (continued)

$ '000

(b). User Charges & Fees

Specific User Charges (per s.502 - Specific "actual use" charges)

Waste Management Services (non-domestic)

Total User Charges

Other User Charges & Fees(i) Fees & Charges - Statutory & Regulatory Functions (per s608, 610A & 611)

Planning & Building RegulationSection 611 Charges

Total Fees & Charges - Statutory/Regulatory

(ii) Fees & Charges - Other (incl. General User Charges (per s.610C))

Child CareCommunity ServicesGolf CourseLeaseback Fees - Council VehiclesLeisure CentreLibraryParks IncomePublic HallsRestoration ChargesTennis CourtsOther

Total Fees & Charges - Other

TOTAL USER CHARGES & FEES

516

49 95

1,339 468

1,010

211

1,677

109

611

637

1,677

Actual Notes

26

26 22

29 1,649

1,706

62

106

47

5,445

22

28

Actual 2010 2009

2,098

111

644

56

86

1,338

5,075

6,807

211

105

611

7,144

page 28





$ '000

(c). Interest & Investment Revenue (incl. losses)

Interest & Dividends- Interest on Overdue Rates & Annual Charges- Interest earned on Investments (interest & coupon payment income)Fair Value Adjustments- Fair Valuation movements in Investments (at FV or Held for Trading)TOTAL INTEREST & INVESTMENT REVENUE

Interest Revenue is attributable to:

Unrestricted Investments/Financial Assets:Overdue Rates & Annual ChargesGeneral Council Cash & Investments

Restricted Investments/Funds - External:Development Contributions - Section 94Domestic Waste Management operationsTown Improvement Levy

Total Interest & Investment Revenue Recognised

(d). Other Revenues

Rental Income - Investment PropertiesRental Income - Other Council PropertiesFinesLegal Fees Recovery - Rates & Charges (Extra Charges)

Commissions & Agency FeesInsurance Claim RecoveriesWaste Performance RebateWorkers Compensation RebateOtherTOTAL OTHER REVENUE

254

66

79 186

67

1,012 868 997

88 8

2,295

295

135

(3,397)

2,068

139

Notes 2010

2,233

14

4,999

(7,080) (3,397)

67

Actual

4,690

2,200 999

235

68

(6) 2,295

367

68

154 158

1,548

Actual

776

(4,508)

2009

67 3,616

120

133

8

page 29





$ '000

(e). Grants

General Purpose (Untied)Financial AssistancePensioners' Rates Subsidies - General Component

Total General Purpose

Specific PurposePensioners' Rates Subsidies: - Domestic Waste ManagementChild CareCommunity ServicesLibraryRegional and Local InfrastructureStreet LightingTransport (Roads to Recovery)

Transport (Other Roads & Bridges Funding)

Transport (NSW Transport)

Other - ParksTransport (Commonwealth Infrastructure program)

Other

Total Specific PurposeTotal Grants

Grant Revenue is attributable to:

- Commonwealth Funding- State Funding- Other Funding

-

- 170

-

-

27 -

32

1,546

757

4,077

4,077

21

3,288

-

Operating 2009

2,531

538 -

-

- -

Capital

-

-

Operating

532

728

1,993 2,453

2010

170 171

229

864 75 65

-

38

144

- -

1,460 4,445

3,769

204

638

4,445

-

138

51 313

1,084

23

- 516

- -

568

1,084

2,985

-

Capital

292

- -

-

117 255

325 5,015

410

1,084

2009

-

-

2010

40

-

-

46

- 5,131

5,541

-

-

30

-

5,541

5,541

118

page 30





$ '000

(f). Contributions

Developer Contributions:(s93 & s94 - EP&A Act, s64 of the NSW LG Act):

S 94 - Contributions towards amenities/services

Total Developer Contributions

Other Contributions:PavingRoads & BridgesRTA Contributions (Regional/Local, Block Grant)Other - Waste ServicesOther - ChildcareOther

Total Other ContributionsTotal Contributions

TOTAL GRANTS & CONTRIBUTIONS

$ '000

(g). Restrictions relating to Grants and Contributions

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

Unexpended at the Close of the Previous Reporting Period

add: Grants and contributions recognised in the current period which havenot been spent:

less: Grants and contributions recognised in a previous reporting periodwhich have been spent in the current reporting period:

Net Increase (Decrease) in

Restricted Assets during the Current Reporting Period

Unexpended at the Close of thisReporting Period and held as Restricted Assets

Comprising:

- Specific Purpose Unexpended Grants

- Developer Contributions 3,937 553

4,490

4,490

(14,893)

5,191

(20,084)

19,383

7,071

2010 2009 Actual

298

Operating

-

2010

34

- -

4,490

1,423

(666)

370

333 -

422

4,867

2009

24 52

17 24 52

-

4,560

314

38

483 459

- -

73

-

34 - -

10

- 51

333 4,239

5,323

Actual

237 256 43

1,197

3,941

3,941

1,197

2009 Capital

5,304 609

2,089

1,530

-

5,913

Operating 2010

37

Capital

5,913

page 31




Note 4. Expenses from Continuing Operations

$ '000

(a) Employee Benefits & On-Costs

Salaries and WagesEmployee Termination CostsTravellingEmployee Leave Entitlements (ELE)Superannuation - Defined Contribution Plans

Superannuation - Defined Benefit Plans

Workers' Compensation InsuranceFringe Benefit Tax (FBT)Training Costs (other than Salaries & Wages)

Total Employee Costsless: Capitalised CostsTOTAL EMPLOYEE COSTS EXPENSED

Number of "Equivalent Full Time" Employees at year end

(b) Borrowing Costs

Nil

(c) Materials & Contracts

Raw Materials & ConsumablesContractor & Consultancy Costs- Waste Service- Contractors (various services)- Consultancy CostsAuditors Remuneration - Audit Services (Council's Auditor)Legal Expenses - Planning & DevelopmentLegal Expenses - OtherOperating Lease Rentals - Minimum Lease Payments (1)

IT ExpensesMotor Vehicle ExpensesOther

Total Materials & Contractsless: Capitalised CostsTOTAL MATERIALS & CONTRACTS

1. Operating Lease Payments are attributable to:

- Computers- Other

371

880

209

547

301

25,172

227

2,754 53

244

651

157 408

Actual 2009

46

1,163

2,526 1,336

1,116

1,248

23,646 24,953

23,957

17,639

765 257 195

(311) (219)

727

1,005 2,239

Notes

299

74 734

8,160

367

15,888

676

488

167 340 340

15,888 -

499

- 15,583

671 840

176

499

132

15,583

738

2,696

-

547

624

-

61

8,756

18,344

2010 Actual

page 32




Note 4. Expenses from Continuing Operations (continued)

$ '000

(d) Depreciation, Amortisation & Impairment

Plant and EquipmentOffice EquipmentFurniture & FittingsLand Improvements (depreciable)Buildings - Non SpecialisedBuildings - SpecialisedOther StructuresInfrastructure: - Roads, Bridges & Footpaths - Stormwater DrainageOther Assets - Library Books - OtherIntangible Assets

Total Depreciation & Impairment Costsless: Capitalised Costsless: Impairments offset in ARR (Equity)

TOTAL DEPRECIATION &IMPAIRMENT COSTS EXPENSED

25

680

672

59

408

774

Actual

4

- -

- -

Notes

- - -

2010

-

-

- -

-

-

-

-

-

-

-

-

-

25

- -

9a

-

-

-

- -

- 3,000

5 249

445

2009 Actual

2,908

1,524

Depreciation/Amortisation

1,399

2010

- -

-

7,660

27

- -

7,720

220

7,660

-

376

-

454

Impairment Costs

-

Actual

73

2009

-

650 748

7,720

Actual

-

680

page 33




Note 4. Expenses from Continuing Operations (continued)

$ '000

(e) Other Expenses

Other Expenses for the year include the following:

AdvertisingBad & Doubtful DebtsBank ChargesCatering Food & BeverageChild Care - Parent FeesCommission ChargesContributions/Levies to Other Levels of Government- NSW Fire Brigade Levy- Department of Planning LevyCouncillor Expenses - Mayoral FeeCouncillor Expenses - Councillors' FeesCouncillors' Expenses (incl. Mayor) - Other (excluding fees above)

Donations, Contributions & Assistance to other organisations (Section 356)Election ExpensesElectricity & HeatingExhibitions, Festivals & EventsInsurancePostagePrinting & StationeryProperty Expenses - UtilitiesProperty Expenses - OtherRevaluation Decrements (Fair Valuation of Investment Properties)Street LightingSubscriptions & PublicationsTelephone & CommunicationsValuation FeesOther

Total Other Expensesless: Capitalised CostsTOTAL OTHER EXPENSES

408

1,026

338 347

- 8,773

8,773

191

151

Notes

101

52

1,279

242

17

108

343 216

414 98

-

86 1,084

221

- 470

28

445

26 298

135 130

-

335

1,012

669

14

2009

306

2010 Actual

246

253 1

Actual

8,918

8,918 -

87

383

921 322

25

1,143

996

242

337 340

184

210

152

52

127

90

- 1,004

page 34




Note 5. Gains or Losses from the Disposal of Assets

$ '000

Property (excl. Investment Property)

Proceeds from Disposalless: Carrying Amount of Property Assets Sold

Net Gain/(Loss) on Disposal

Plant & EquipmentProceeds from Disposalless: Carrying Amount of P&E Assets Sold


Financial Assets*Proceeds from Disposalless: Carrying Amount of Financial Assets Sold / Redeemed


NET GAIN/(LOSS) ON DISPOSAL OF ASSETS

* Financial Assets disposals include:- Net Gain/(Loss) from Financial Instruments "At Fair Value through profit & loss"

Net Gain/(Loss) on Disposal of Financial Instruments

459

281

281

20,311

178

(770)

Actual 2010

948

-

- -

281

(20,030)

Notes

365

365

127

849

20,255

471

365

(19,890)

(21)

(722)

(21)

2009 Actual

-

page 35




Note 6a. - Cash Assets and Note 6b. - Investment Securities

$ '000

Cash & Cash Equivalents (Note 6a)Cash on Hand and at BankCash-Equivalent Assets1

- Deposits at Call- Short Term Deposits

Total Cash & Cash Equivalents

Investment Securities (Note 6b)- Long Term Deposits- NCD's, FRN's (with Maturities > 3 months)

- CDO's- Other Long Term Maturity Financial Instruments

Total Investment SecuritiesTOTAL CASH ASSETS, CASHEQUIVALENTS & INVESTMENTS

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

Cash, Cash Equivalents & Investments wereclassified at year end in accordance withAASB 139 as follows:

Cash & Cash Equivalentsa. "At Fair Value through the Profit & Loss"

Investmentsa. "At Fair Value through the Profit & Loss"- "Held for Trading"

- "Designated at Fair Value on Initial Recognition"

b. "Held to Maturity"c. "Loans & Receivables"d. "Available for Sale"Investments

7,617

-

4,000

9,000

3,234 2,732

25,558

-

-

- -

9,300

-

-

17,941

9,300

-

7,617

4,040

-

3,500

77

Current Actual

Notes

2009

3,310

-

2,541

8,907

29,109

3,902

25,207

3,056

3,902

16,300

6(b-i)

16,300

-

6(b-i)

6(b-iv)

6(b-iii) - 6(b-ii)

25,207 - -

4,000

9,000 -

- 8,941

- 4,000

-

Actual

-

-

-

Non Current

2,975

2010

-

-

9,300 -

9,300

9,300

968

Actual

2010

Current

- -

4,000

2,934 -

4,000

-

- -

-

2009 Actual

17,941

Non Current

page 36




Note 6b. Investments (continued)

$ '000

Note 6(b-i)Reconciliation of Investments classified as"At Fair Value through the Profit & Loss"Balance at the Beginning of the Year

Revaluations (through the Income Statement)

Additions

Disposals (sales & redemptions)

Balance at End of Year

Comprising:

- NCD's, FRN's (with Maturities > 3 months)

- CDO's

- Other Long Term Maturity Financial Assets

Total

Note 6(b-ii)Reconciliation of Investmentsclassified as "Held to Maturity"Balance at the Beginning of the Year

Additions

Disposals (sales & redemptions)

Transfers between Current/Non Current

Balance at End of Year

Comprising:

- Long Term Deposits

Total

Note 6(b-iii)Reconciliation of Investmentsclassified as "Loans & Receivables"Nil

Note 6(b-iv)Reconciliation of Investmentsclassified as "Available for Sale"Nil

4,000

9,300

9,000

4,000

4,000

11,000 9,300

-

-

4,000 (20,000)

9,300

-

-

(9,300)

9,000

3,234

(7,080)

9,000

-

-

(2,000)

33,911

- (17,890)

-

-

(6)

-

Non Current

-

-

Actual

2010

Current

8,941

8,941

Actual

2010

-

16,300

16,300

18,000

16,300

9,300

9,000

2,541

8,907

3,056

(30) 2

3,310

8,907

2,975

2,732

8,941

-

9,300

-

-

-

9,300

-

Non Current

-

2009 Actual

Current Actual

-

- -

-

- -

2009

page 37




Note 6c. Restricted Cash, Cash Equivalents & Investments

$ '000

Total Cash, Cash Equivalents andInvestment Securities

attributable to:

External Restrictions (refer below)

Internal Restrictions (refer below)

Unrestricted

$ '000

Details of Restrictions

External Restrictions - Included in LiabilitiesNil

External Restrictions - OtherDeveloper Contributions - General (D)

Specific Purpose Unexpended Grants (F)

Domestic Waste Management (G)

Town Improvement Levy (G)

Special Rate Levy (G)

External Restrictions - OtherTotal External Restrictions

D Development contributions which are not yet expended for the provision of services and amenities in accordance

with contributions plans (refer Note 17).

F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1)

G Water, Sewerage, Domestic Waste Management (DWM) & other Special Rates/Levies/Charges are externally

restricted assets and must be applied for the purposes for which they were raised.

(221)

1,809 129 (213)

- 2,001

250 2,138

(993) 945 609

5,304

(7)

-

-

4,000

-

Transfers to

4,000

4,000

Non Current

8,300

Restrictions

25,558

Current

2009 Actual

Restrictions Transfers from

25,558

14,736 2,522

1,588

257 350

8,300

8,300

2,380

2,380

2010

507

Actual Current

29,109

553 3,937

56

- 9,246

Balance Opening

29,109

Non Current

9,300

Closing

9,300

(1,434)

(1,434)

9,246

9,246

Balance

Actual

2009

2010

19,356

Actual

2010

9,300 -

page 38




Note 6c. Restricted Cash, Cash Equivalents & Investments (continued)

$ '000

Internal RestrictionsPlant & Vehicle Replacement

Employees Leave Entitlement

Deposits, Retentions & Bonds

Building Replacement

Office Equipment

Office Technology

Election Reserve

Asset Development

Property Maintenance

Superannuation

CBD Masterplan

Childcare Whitegoods

Revolving Energy Fund

Tree Preservation

Golf Membership

LDC Building

LDC Equipment

Occasional Child Care

Family Day Care

Street Decorations

Golf Course Improvement

Financial Assistance Grant

Total Internal Restrictions

TOTAL RESTRICTIONS

100

(495) 520 60 -

3

636

24,036

495 30 30

520

1,934 598

Opening

50

100 -

241

12 21

7

32,336

-

5,310

8

2,930

-

-

(5) (52)

-

2

- -

-

- -

5

12 7

1,934

40 31 7

28

162

Transfers to Restrictions

8

35

777

20

-

9,027 1,135

8 40

29

80 57

-

2 -

(37) -

430

100 424

(3,610)

32,602

23,356

2010 Balance

59

8,669 242

3 (37) (56)

(5,044)

200

100 68

29

493

(871) -

910 9,505

7,960

(299)

(242) (466)

437

848

638 -

Transfers from Restrictions

(1,050) 396

Balance Closing

page 39




Note 7. Receivables

$ '000

PurposeRates & Annual ChargesInterest & Extra ChargesUser Charges & FeesContributions to WorksAccrued Revenues - Interest on Investments - Other Income AccrualsGovernment Grants & SubsidiesNet GST Receivable

Total

less: Provision for Impairment

User Charges & Fees

Total Provision for Impairment - Receivables

TOTAL NET RECEIVABLES

Externally Restricted ReceivablesDomestic Waste Management

Other

- Town Improvement Levy

Total External RestrictionsInternally Restricted ReceivablesNil

Unrestricted ReceivablesTOTAL NET RECEIVABLES

Notes on Debtors above:

(i) Rates & Annual Charges Outstanding are secured against the property.

(ii) Doubtful Rates Debtors are provided for where the value of the property is less than the debt outstanding.

An allowance for other doubtful debts is made when there is objective evidence that a receivable is impaired.

(iii) Interest is charged on overdue rates & charges at 9.00% (2009 10.00%).

Generally all other receivables are non interest bearing.

(iv) Please refer to Note 15 for issues concerning Credit Risk and Fair Value disclosures.

143

215

42 182

3,009 257

2,864 3,191 226 3,007

191

1

35

34 137

3,007

(8)

3,015

474

372

(8)

Notes Current Non Current

2010

257

704

-

6 2 7

175

(8)

40

257

- (8)

-

3,191

-

-

Current

138

-

-

103 573

144

88

226

-

226

Non Current

-

-

- -

-

3,199

135

680

2009

176

397 -

- 522

817 -

588

70

98 537 -

81

page 40




Note 8. Inventories & Other Assets

$ '000

InventoriesStores & Materials

Total Inventories

Other AssetsPrepayments

Total Other Assets

TOTAL INVENTORIES& OTHER ASSETS

(i) Externally Restricted Assets

Nil

Total Externally Restricted Assets

Total Internally Restricted Assets

Total Unrestricted AssetsTOTAL INVENTORIES & OTHER ASSETS

(ii) Other Disclosures

(a) Inventory Write Downs $415 was recognised as an expense relating to the write down of Inventory balances held during the year.

847 -

847

- -

-

847

-

- -

-

-

-

Current

-

352 -

142

Non Current Current

2010 Notes

2009 Non Current

129

718

129

352

494 -

- 718 -

- 142

-

-

494

-

494 -

-

-

page 41



Note 9a. Infrastructure, Property, Plant & Equipment

-

-

16 5,146

-

90

16

156,571 - 7,860 -

- 5,146

2,009

- 5 -

-

5,198

5,658 -

-

-

- -

-

81,126

- - 5,134 -

98,696 373,396 274,700 60,276 - 18,001

-

85 25,110 17,367

78,277

- -

3,649

-

- 24,941 - 48,595

-

73,705 42,308

-

-

6,732 6,988 -

-

-

-

2,156

256 917

6,296 -

- 7,383

2,096

-

- - -

- 3,013

156,571 - 7,860 -

-

2,013 10

- -

58,356 2,505

- (445)

(680) - 135,713 260,627

- 1,997 5,200

Land Improvements - depreciable Buildings - Non Specialised

25 - 70,934 -

Asset Additions

WDVof Asset

Disposals

Depreciation Expense

Adjustments& Transfers

-

- -

13,679

-

Asset Movements during the Reporting Period

-

Impairment

as at 30/6/2010

Value

CarryingAccumulated

Dep'n

At

Cost

-

At

Fair Value

2,156

Revaluation Increments to Equity (ARR)

(10,374) -

- 8,350 -

(6) (15)

1,847

Plant & Equipment Office Equipment

- Furniture & Fittings

- - 6,672 - 6,853

- 2,812

At Accumulated

Impairment

13,388 8,429 -

At

- - 12,078

$ '000 Deprec.Fair Value

Capital Work in Progress 12,078

Cost

452 - (1,399) (770)

- 3,508

181 150

as at 30/6/2009

Carrying

Value

4,959 -

- -

(59) (249)

5,424 - - Land:

965 207

- Operational Land - - 142,797 - - Community Land

142,797 7,860 - - - - 7,860 -

- - Land under Roads (post 30/6/08) 16 - 16 - - -

- - - 25 - (5)

5,146 -

- Roads, Bridges, Footpaths

-

-

Land Improvements - non depreciable 5,146 -

Buildings - Specialised -

Infrastructure:

- - (672)

-

17,771 42,040 267 - 24,269

- -

- - 23,113 47,821 759

-

55

-

-

457

(3,000) 124,914

3,203 Other Structures

(774)

- - Stormwater Drainage 55,594 24,913 - 30,681 - - (17,198) Other Assets:

384,181 14,114 278,824

TOTAL INFRASTRUCTURE,PROPERTY, PLANT & EQUIP. 352,680 247,323 - 517,266 258,061 86,324 747,937 - 27,390 (770) (7,716)

4,726 - - Library Books 5,580 - 854 25 - Other 554 - 529

- 5,910 - 776 554 - 554

Financial S

tatements 2010

- -

page 42

- -

41,136

(408) -

330 - (25) -




Note 9b. Externally Restricted Infrastructure, Property, Plant & Equipment

Note 9c. Infrastructure, Property, Plant & Equipment - Current Year Impairments

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

- 1,560 2,734

-

2,760 TOTAL RESTRICTED I,PP&E

Total Other Restrictions

1,194

-

Other Restricted Assets

Land

Domestic Waste Management

$ '000

Class of Asset

Total DWM

Plant & Equipment

- Plant & Equipment

- 1,566

Actual

1,174

1,377

- 1,351

- 6

6 20

71

20 26

- 26

1,306

- 1,306

1,174

26

26 -

-

1,560 2,734

Actual2010

Actual2009

A/Dep & Carrying ValueCost Fair Value

At

Impairm't

At A/Dep &

Cost

At

Fair Value Impairm't

Carrying Value

At

-

26

Actual

- 1,351 45 1,306

45

26

page 43




Note 10a. Payables, Borrowings & Provisions

$ '000

PayablesGoods & Services - operating expenditureGoods & Services - capital expenditurePayments Received In AdvanceAccrued Expenses: - Other Expenditure AccrualsSecurity Bonds, Deposits & RetentionsATO - Net GST PayableATO - FBT ProvisionOther

Total Payables

BorrowingsNil

ProvisionsEmployee Benefits;

Annual LeaveSick LeaveLong Service LeaveGratuities

Sub Total - Aggregate Employee Benefits

Total Provisions

Total Payables,Borrowings & Provisions

(i) Liabilities relating to Restricted Assets

Nil

1. Loans are secured over the General Rating Income of Council

Disclosures on Liability Interest Rate Risk Exposures, Fair Value Disclosures & Security can be found in Note 15.

-

169 161

161

20,621

Non Current Current

2009

9,106

Current

-

Non Current Current

1,920 2,506 607 390

-

- 3,267 -

66

Notes

2,093

- 115

Current

2010

169

434

8,209

8,209

-

-

399

2,137

- 62

- 192

55

5,302

161

Non Current

3,318

78

-

- -

-

2009

- - 1,547

2010 Non Current

- -

-

169

2,318

4,310 169 1,147

12,412

-

-

1,002

-

17,242

- 161

- -

8,136

4,598

8,136

page 44




Note 10a. Payables, Borrowings & Provisions (continued)

$ '000

(ii) Current Liabilities not anticipated to be settled within the next 12 months

The following Liabilities, even though classified as current, are not expectedto be settled in the next 12 months.

Provisions - Employees BenefitsPayables - Security Bonds, Deposits & Retentions

Note 10b. Description of and movements in Provisions

a. Employees Leave Entitlements & On-Costs represents those benefits accrued and payable and an estimate of those

that will become payable in the future as a result of past service.

399

-

2010

2,137

Additional Provisions

7,970

5,426

(1,696)

8,305

4,767 1,002

ClosingBalance

as at 30/6/10

2,544

2009

12 434

(217)

Decrease due to Payments

2009

Class of ProvisionOpeningBalance

as at 1/7/09

Long Service Leave 4,471 713

2,318 Sick Leave 1,147 Annual Leave

51 1,499

Gratuities

TOTAL 8,370 (2,523) 2,275

16

8

Remeasurement effects due to

Discounting

8,023

5,409 2,614

2010

Unused amounts reversed

(555) 138 (55) -

-

-

183

21 -

page 45




Note 11. Statement of Cash Flows - Additional Information

$ '000

(a) Reconciliation of Cash AssetsTotal Cash & Cash Equivalent AssetsLess Bank OverdraftBALANCE 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 & AmortisationNet Losses/(Gains) on Disposal of AssetsLosses/(Gains) recognised on Fair Value Re-measurements through the P&L: - Investments classified as "@ Fair Value" or "Held for Trading" - Investment Properties

+/- Movement in Operating Assets and Liabilities & Other Cash Items:

Decrease/(Increase) in ReceivablesIncrease/(Decrease) in Provision for Doubtful DebtsDecrease/(Increase) in InventoriesDecrease/(Increase) in Other Current AssetsIncrease/(Decrease) in PayablesIncrease/(Decrease) in accrued Interest PayableIncrease/(Decrease) in other accrued Expenses PayableIncrease/(Decrease) in Other Current LiabilitiesIncrease/(Decrease) in Employee Leave EntitlementsIncrease/(Decrease) in Other Provisions

NET CASH PROVIDED FROM/(USED IN)OPERATING ACTIVITIES from the STATEMENT of CASH FLOWS

2009

7,617

(471)

-

7,080

7,617

(580)

7,660

366

257

586

10

(420)

205 (180)

4,800

(811)

-

Actual

466

(459)

-

18,016

(3,209)

(13)

322

(55)

-

-

2010

(215)

- 3,902

6

7,720

6a

-

7,342

-

3,902

Actual

-

12,316

(65)

Notes

page 46




Note 11. Statement of Cash Flows - Additional Information (continued)

$ '000

(c) Non-Cash Investing & Financing Activities

Nil

(d) Financing Arrangements

(i) Unrestricted access was available at balance date to the following lines of credit:

Bank Overdraft Facilities (1)

Credit Cards / Purchase CardsOther

Total Financing Arrangements

Amounts utilised as at Balance Date:- Bank Overdraft Facilities- Credit Cards / Purchase Cards- Other

Total Financing Arrangements Utilised

1. The Bank overdraft facility may be drawn at any time and may be terminated by the bank without notice.

Interest rates on overdrafts are Interest Rates on Loans & Other Payables are disclosed in Note 15.

(ii) Secured Loan Liabilities

Loans are secured by a mortgage over future years Rate Revenue only.

(e) Net Cash Flows Attributable to Discontinued Operations

Please refer to Note 24 for details of Cash Flows that relate to Discontinued Operations

32

-

-

349

32 -

-

-

150

366

- 216

Actual

26

26

150 199

2010 2009 Actual

Notes

page 47




Note 12. 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 & EquipmentBuildingsPlant & EquipmentOther

Investment PropertyNil

Total Commitments

These expenditures are payable as follows:

Within the next yearLater than one year and not later than 5 yearsLater than 5 years

Total Payable

Sources for Funding of Capital Commitments:

Future Grants & ContributionsSect 64 & 94 Funds/ReservesInternally Restricted Reserves

Total Sources of Funding

(b) Other Expenditure Commitments (exclusive of GST)

Other Non Capital expenditure committed for at the reportingdate but not recognised in the financial statements as liabilities:

DWM & Recycling ServicesAudit ServicesOther - Enterprise SystemOther

Total Commitments



Total Payable

37,638

38,382

11,108

- 535

9,292 -

-

2009 Actual

- 3,818

9,552

Actual

27

47,087

9,552

-

9,552

9,552

2,660 209

38,382

14,339

7,667 8,399 25,813

47,087

14,339

8,431

13,607

1,124

18,875

-

9,552

-

2,090

- 14,339

43,178 125

652 8,900

14,339

2010

5,020

Notes

page 48




Note 12. Commitments for Expenditure (continued)

$ '000

(c) Finance Lease Commitments

Nil

(d) Operating Lease Commitments (Non Cancellable)

a. Commitments under Non Cancellable Operating Leases at the Reporting date, but not recognised as Liabilities are payable:


Total Non Cancellable Operating Lease Commitments

b. Non Cancellable Operating Leases include the following assets: Office Equipment - Computers, Scanners, Printer/Photocopier fleet Contingent Rentals may be payable depending on the condition of items or usage during the lease term.

Conditions relating to Operating Leases:- All Operating Lease Agreement are secured only against the Leased Asset.- No Lease Agreements impose any financial restrictions on Council regarding future debt etc.

(e) Investment Property Commitments

Non Capital expenditure on Investment Properties committed for at thereporting date but not recognised in the financial statements as liabilities:

Contractual Obligations - Repairs & Maintenance

Total Commitments



Total Payable

(f) Remuneration Commitments

Commitments for the payment of salaries & other remunerationunder long-term employment contracts in existence at reportingdate but not recognised as liabilities are payable:


Total Payable

2009 Actual

Notes 2010

1,172

970

569

29

-

734

-

311 547

Actual

-

1,719

- 258

8

29

29

35

76

41

236

- 21

76

835 703

1,538

-

76

page 49




Note 13a. Statement of Performance Measurement - Indicators (Consolidated)

$ '000

1. Unrestricted Current RatioCurrent Assets less all External Restrictions (1)

Current Liabilities less Specific Purpose Liabilities (2,3)

2. Debt Service RatioDebt Service CostRevenue from Continuing Operationsexcluding Capital Items & SpecificPurpose Grants/Contributions

3. Rates & Annual Charges Coverage RatioRates & Annual ChargesRevenue from Continuing Operations

4. Rates, Annual Charges, Interest & Extra Charges Outstanding PercentageRates, Annual & Extra Charges Outstanding

Rates, Annual & Extra Charges Collectible

5. Building & Infrastructure Renewals RatioAsset Renewals(4) [Buildings & Infrastructure]

Depreciation, Amortisation & Impairment

(Building & Infrastructure Assets)

Notes

(1) Refer Notes 6-8 inclusive.

Also excludes any Real Estate & Land for resale not expected to be sold in the next 12 months

(2) Refer to Note 10(a).

(3) Refer to Note 10(c) - excludes all payables & provisions not expected to be paid in the next 12 months (incl. ELE).

(4) Asset Renewals represent the replacement &/or refurbishment of existing assets to an equivalent capacity or performance

as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

2010

0.00%

Indicator

2,671

3.60%

20082010

-

2.53 : 123,366

2.62%

9,219

61.63%

52.11%

55,576

Amounts

0.00%

91.90%63.62%

Prior Periods

1.66 3.95

59.50%64,676

2009

2.43%

39.91%

2.29%39,521

5,126

1,035

38,485

page 50




Note 13a Statement of Performance Measurement - Graphs (Consolidated)

page 51

Note 13a. Statement of Performance Measurement - Graphs (Consolidated)

$ '000

Purpose of Unrestricted Current

RatioCommentary on 2009/10 Result

3.43.95

2 533 0

4.0

5.0

1

1. Unrestricted Current Ratio

Increased due to higher proportion ofinvestments maturing within 12 monthscompared to previous year.

Purpose of Debt

2009/10 Ratio 2.53 : 1To assess the adequacy of working capital and its ability to satisfy obligations in the short term for

the unrestricted activities of Council.

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


5.0%2. Debt Service Ratio

To assess the impact of loan principal &

interest repayments on the discretionary revenue of council.

Commentary on 2009/10 Result

2009/10 Ratio 0.00%

Council has no debt.

Purpose of Debt Service Ratio

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


1.18%

3.60%

0.00% 0.00%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008 2009 2010

Rat

io %

Year

2. Debt Service Ratio

To assess the degree of Council's

dependence upon revenue from rates and annual charges

2009/10 Ratio 59.50%

Commentary on 2009/10 ResultPurpose of Rates &

Annual Charges Coverage Ratio

2009/10 was consistant with prior years,2007/08 was abnormal due to large propertysales.

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


1.18%

3.60%

0.00% 0.00%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008 2009 2010

Rat

io %

Year


61.73%

39.91%

61.63% 59.50%

0%10%20%30%40%50%60%70%80%

Rat

io %

3. Rates & Annual Charges Coverage Ratio

and annual charges and to assess the

security of Council's income.

2009/10 has increased slightly due to difficult2009/10 Ratio 2.62%

Commentary on 2009/10 Result

To assess the impact f ll t d t

Purpose of Rates & Annual Charges

Outstanding Ratio

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


1.18%

3.60%

0.00% 0.00%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008 2009 2010

Rat

io %

Year


61.73%

39.91%

61.63% 59.50%

0%10%20%30%40%50%60%70%80%

2007 2008 2009 2010

Rat

io %

Year


2.23% 2.29% 2.43% 2.62%

1%

2%

3%

4%

tio

%

4. Rates, Annual Charges, Interest & Extra Charges Outstanding Percentage

Purpose of Building & Infrastructure Renewals Ratio

Commentary on Result

g yeconomic conditions. It is still well under theindustry benchmark of 5%.

of uncollected rates and annual charges on Council's liquidity and the adequacy of

recovery efforts.

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


1.18%

3.60%

0.00% 0.00%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008 2009 2010

Rat

io %

Year


61.73%

39.91%

61.63% 59.50%

0%10%20%30%40%50%60%70%80%

2007 2008 2009 2010

Rat

io %

Year


2.23% 2.29% 2.43% 2.62%

0%

1%

2%

3%

4%

2007 2008 2009 2010

Rat

io %

Year


91.90%100%120%

5. Building & Infrastructure Renewals Ratio

Renewals Ratio

To assess the rate at which these assets are being renewed against the rate at

which they are depreciating.

2009/10 Ratio 52.11%

2009/10 has decreased due to Council's focuson new capital projects such as BusInterchange, Central Plaza and KingsgroveCommunity Centre.

3.43.95

1.66 2.53

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010

Rat

io :

1

Year


1.18%

3.60%

0.00% 0.00%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2007 2008 2009 2010

Rat

io %

Year


61.73%

39.91%

61.63% 59.50%

0%10%20%30%40%50%60%70%80%

2007 2008 2009 2010

Rat

io %

Year


2.23% 2.29% 2.43% 2.62%

0%

1%

2%

3%

4%

2007 2008 2009 2010

Rat

io %

Year


74.56%91.90%

63.62%52.11%

0%20%40%60%80%

100%120%

2007 2008 2009 2010

Rat

io %

Year

5. Building & Infrastructure Renewals Ratio

page 51




Note 14. Investment Properties

$ '000

(a) Investment Properties at Fair value

Investment Properties on Hand

Reconciliation of Annual Movement:Opening Balance

- Acquisitions- Capitalised Expenditure - this year- Net Gain/(Loss) from Fair Value Adjustments- Other Movements (from WIP)CLOSING BALANCE - INVESTMENT PROPERTIES

(b) Valuation Basis

The basis of Valuation of Investment Properties is Fair Value, being the amounts for which the properties couldbe exchanged between willing parties in arms length transaction, based on current prices in an active marketfor similar properties in the same location and condition and subject to similar leases.

The 2009/10 revaluations are not based on an Independent Assessment and Valuation.

The last independent valuation of investment buildings were completed at 30/6/2008. The next independentrevaluation will be completed for the period ending 30/6/2011 (3 years). Capital additions reflect actual cost.

(c) Contractual Obligations at Reporting Date

Refer to Note 12 for disclosures relating to any Capital and Service obligations that have been contracted.

(d) Leasing Arrangements

Future Minimum Lease Payments receivable undernon-cancellable Investment Property Operating Leasesnot recognised in the Financial Statements are due:Within 1 yearLater than 1 year but less than 5 yearsLater than 5 yearsTotal Minimum Lease Payments Receivable

(e) Investment Property Income & Expenditure - summary

Rental Income from Investment Properties:

- Minimum Lease PaymentsDirect Operating Expenses on Investment Properties:

- that generated rental income

Net Revenue Contribution from Investment Propertiesplus: Fair Value Movement for year

Total Income attributable to Investment Properties

(322)

15,770

571

2,060

(322)

575 249

Notes

997

50 1,064

779

1,893

575 -

(422)

868

-

15,698

143

107 -

15,832

15,832

2009 2010 Actual

- -

-

134

1,358

15,698

15,698

Actual

702

(297)

page 52




Note 15. Financial Risk Management

$ '000

Risk Management

Council's activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity 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 & FinancialLiabilities recognised in the financial statements is presented below.

Financial AssetsCash and Cash EquivalentsInvestments- "Held for Trading"- "Held to Maturity"Receivables

Total Financial Assets

Financial LiabilitiesPayables

Total Financial Liabilities

Fair Value is determined as follows:

- Cash & Cash Equivalents, Receivables, Payables - are estimated to be the carrying value which approximates mkt value.

- Borrowings & Held to Maturity Investments - are based upon estimated future cash flows discounted by the current

market interest rates applicable to assets & liabilities with similar risk profiles, unless quoted market prices are available.

- Financial Assets classified (i) "at fair value through profit & loss" or (ii) Available for Sale - are based upon quoted

market prices (in active markets for identical investments) at the reporting date or independent valuation.

3,233

38,091

8,716

Carrying Value

8,716

12,220 8,716

12,220

3,448 3,233

36,557 38,091

20,300 8,907

18,300

8,941

2010

7,617

12,220 8,716

20,300

2009 2010

18,300

3,448

7,617 3,902

8,941 8,907

3,902

Fair Value

2009

36,557

12,220

page 53




Note 15. Financial Risk Management (continued)

$ '000

(a) Cash & Cash Equivalents, Financial assets "at fair value through the profit & Loss", "Available-for-sale" financial assets & "Held-to-maturity" Investments

Council's objective is to maximise its return on cash & investments whilst maintaining an adequate level ofliquidity and preserving capital.

Council's Finance Section manages it's Cash & Investments portfolio with the assistance of independent advisorsadvisors.

Council has an Investment Policy which complies with the Local Government Act & Minister's Investment Order.This Policy is regularly reviewed by Council and it's staff and an Investment Report is tabled before Council ona monthly basis setting out the portfolio breakup and its performance.

The major risk associated with Investments is price risk - the risk that the capital value of Investments mayfluctuate due to changes in market prices, whether there changes are caused by factors specific to individualfinancial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.

Cash & Investments are also subject to interest rate risk - the risk that movements in interest rates could affectreturns and income.

A further risk associated with Cash & Investments is credit risk - the risk that the counterparty (to an investment)will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council - beit 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.

Council also seeks advice from independent advisers before placing any funds in Cash Equivalents &Investments.

The following represents a summary of the sensitivity of Council's Income Statement and Accumulated Surplus(during the reporting period) due to a change in either the price of a financial asset or the interest ratesapplicable.

It is assumed that the change in interest rates would have been constant throughout the reporting period.

2010

Possible impact of a 10% movement in Market Values

Possible impact of a 1% movement in Interest Rates

2009

Possible impact of a 10% movement in Market Values

Possible impact of a 1% movement in Interest Rates

(1,795)

(220) 220

(221) (1,795)

(891) (220)

Decrease of Values/Rates

Equity

(891)

(221)

891 Profit Profit Equity

221 1,795

220

221

Increase of Values/Rates

891

1,795

page 54





$ '000

(b) Receivables

Council's major receivables comprise (i) Rates & Annual charges and (ii) User Charges & Fees.

The major risk associated with these receivables is credit risk - the risk that debts due and payable to 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 & annual charges at higher than market rates which further encourages the payment of debt.

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 ReceivablesCurrent (not yet overdue)Past due by up to 30 daysPast due between 31 and 180 daysPast due between 181 and 365 daysPast due by more than 1 year

(ii) Movement in Provision for Impairment of ReceivablesBalance at the beginning of the year- amounts already provided for & written off this yearBalance at the end of the year

2009

2,530

Other

-

2009

Rates &

Annual

- 100

2009

- 2,340

Charges

8 8 - (55) 8 63

2,600 202 711

124

-

- 9

2,123 255

Receivables

-

Other

2010

90

Rates &

856 228

89 509

Receivables

2010

628 -

Annual

Charges

-

2010

page 55





$ '000

(c) Payables & Borrowings

Payables & Borrowings are both subject to liquidity risk - the risk that insufficient funds may be on hand tomeet 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.

As well, payment terms can (in extenuating circumstances) be extended & overdraft facilities can be drawndown.

The contractual undiscounted cash outflows (ie. principal and interest) of Council's Payables & Borrowings areset out in the Liquidity Table below:

$ '000

Trade/Other Payables




Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affectfunding costs & debt servicing requirements. Council manages this risk through the diversification of borrowingtypes, maturities & interest rate structures.

The following interest rates were applicableto Council's Borrowings at balance date:


3,267 5,449

3,267 5,449

8,716

Value

8,716

-

-

2010

-

-

-

-

Carrying

- -

ActualTotal

Cash Carrying

Values> 5 Yrs Outflows

8,716

8,716

4-5 Yrs

-

payable in:

-

3,318 8,902 -

8,902

- - 8,716 -

2-3 Yrs

-

3-4 Yrs

-

maturity 1-2 Yrs≤ 1 Year

3,318

-

- 12,220 12,220

2009

2010

to no

Subject

12,220

-

Average

2009

Interest Rate

12,220 0.0%

8,716

Carrying

0.0%

-

Interest RateValue

Average

12,220 12,220

page 56




Note 16. Material Budget Variations

$ '000

Council's Original Financial Budget for 09/10 was incorporated as part of its Management Plan and wasadopted by the Council on 20 May 2009.

While the Income Statement included in this General Purpose Financial Report must disclose the OriginalBudget adopted by Council, the Local Government Act requires Council to review its Financial Budget on aQuarterly 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.

Material Variations represent those variances that amount to 10% or more of the original budgeted figure.

Note that for Variations: F = Favourable Budget Variation, U = Unfavourable Budget Variation

$ '000

REVENUESRates & Annual ChargesAdditional income due to an increase in Sub-divisions and Strata's in the LGA

User Charges & FeesThe following items exceeded budget:

Building / Development Fees - $90k - Development Application fees and Hoarding Rental and Road OpeningPermits - $52k

Interest & Investment RevenueUnbudgeted coupon payments received from structured investments and an increase in interest rates received.

Other RevenuesThe following items exceeded budget:-Waste Performance Incentive - $145k - due to higher than anticipated recycling by ratepayersWorkers Compensation Reimbursement of wages - $44kInsurance Premium Refunds/Claims - $40k - incentive bonuses on premiums and reimbursement due todamages

Operating Grants & ContributionsThe following items exceeded budget:-Resident education - $73k - contribution received from new Waste contractor Library - $90k - additional Special Purposes grant received

The following items were under budget:-Childcare Benefit - $79k - under utilization of Jack High Childcare Centre

994 76% F

1%

F

F

4,999

42

2010 Budget

38,307

1,301

4,788

6,120

4,518

38,485

4,560

Actual2010

---------- Variance* ----------2010

178 0%

211

687 11%

Income from Restoration of Roads & Footpaths - $529k - due to installation of underground electricity cable by energy Australia from Peakhurst to Kogarah sub-station

F

F

2,295

6,807

4%

page 57




Note 16. Material Budget Variations (continued)

$ '000

REVENUES (continued)Capital Grants & ContributionsThe following items exceeded budget:-

The following items were under budget:-Section 94 Contributions - $533k - development in LGA less than anticipated

Net Gains from Disposal of AssetsGain from Sale of Investment was unbudgeted resulting in an increase of $281k

$ '000

EXPENSESEmployee Benefits & On-CostsWorkers Compensation Premiums exceeded budget by $210k due to increased claims.

Staff Training under budget by $66k and Fringe Benefits tax over budget by $54k

Borrowing Costs

Materials & ContractsSavings occurred in the following expense items:-Materials - $146k - which is offset by additional contractor charges in engineering works.Waste Contractors - $191k - savings in Rise & Fall claims and Tipping fees.Property Expenses - $124k - savings in Refit costs for tenants, cleaning and security.also $65k IT costs, $57k Motor Vehicle running costs, $52k Printing & Stationery, $52k retainer, $35k audit fees.

The following expense items exceeded budget:-Legal Fees - $136k - as a result of DA appeals, commercial property tenancy actions and new waste contract

Depreciation & Amortisation

2,302

Budget Actual ---------- Variance* ----------2010 2010 2010

Various Contractors - $443k - due to Energy Australia restorations of $337k which is offset by additional income and $106k from engineering works which is offset by materials

Savings in Employee costs (Wages, Superannuation and ELE Accrual) of $632k due to various vacancies throughout the year.

F

F

F1%

470

215

-

---------- Variance* ----------

2%

155%

F

407

2010

F48%

279

5%

Budget2010

F

NSW Transport - Hurstville CBD Bus Interchange project - $2,365k additional funding received for property acquisitions.RTA Repair Grant - $256k - additional funds received for Boundary Road project.Commonwealth Infrastructure program - $118k - contribution towards Penshurst Commercial Centre upgrade.

0%-

16,103 15,888

-

24,953

459

7,720 8,127

25,423

2010

4,769

180

Actual

7,071

page 58




Note 16. Material Budget Variations (continued)

$ '000

EXPENSES (continued)Other ExpensesSavings occurred in the following expense items:-

IPB Commission - $75k continued savings due to electronic remitting of finesInsurance - $103k - various premiums under budgetStreet Lighting - $154k - original budget included provision for IPART determinationValuation Fees - $45k - due to Asset Revaluation works less than anticipated

The following expense items exceeded budget:-

2010 Budget Actual ---------- Variance* ----------

2010 2010

Utilities - $365k - due to new management of the Hurstville Aquatic Leisure Centre, Council is now paying for all utilities.

262

Advertising - $93k - savings mainly in Recruitment advertising due to reduction in size of ads and more reliance on Internet advertising.

F3%9,035 8,773

page 59



Note 17. Statement of Developer Contributions

$ '000

Council recovers contributions, raises levies & enters into planning agreements on development works that are subject to a development consent issued by Council.

All contributions must be spent/utilised for the specific purpose they were levied and any interest applicable to unspent funds must be attributed to remaining funds.

The following tables detail the receipt, interest and use of the above contributions & levies and the value of all remaining funds which are "restricted" in their future use.

SUMMARY OF CONTRIBUTIONS & LEVIES

(59)

-

-

-

-

894

-

-

(1,911)

(1,856)

3,738

-

CumulativeProjections

-

(360) 785

Over or

-

-

(5,670)

Future (under)

Funding

(330)

Internal

Borrowings

1,097

due/(payable)

-

outstanding

(1,300)

(754)

322

(4)

(272)

(13,945) -

-

367

-

367

Management

- S94 not under Plans

Financial S

tatements 2010

5,304

- -

-

-

-

-

page 60

3,937

3,937

3,937

Total Contributions

1,221 -

Urban Space

-

S64 Contributions

-

909 70

-

1,221

-

166

-

-

- -

-

7

- -

1,221

24

Open Space - Community Facilities

-

-

- -

- 322 - Library

S93F Planning Agreements

Other

Total S94 Revenue Under Plans

S94 Contributions - under a Plan

S94A Levies - under a Plan -

5,304

- -

-

6,785

(1,280)

160 80

-

308 (2,892) (4,929)

-

6,785

(1,856)

Exp

-

- (169)

(13,945)

(2,010)

(1,005)

still

948 140

3,200

1,005

- 2,000 1,018

2,332

Internal

Restricted

Held as

750 - 111

Asset

Interest

(5) 33

Expenditure

earned during Borrowing

- -

- 599

(to)/from

(599)

income

200 25 140

599

Non Cash in Year Year

- 79 -

-

- 32

Traffic Facilities2,253

673 Parking - -

52

PURPOSE

Drainage

Opening

CashBalance

51

received during the Year

Contributions

-

-

(59)

-

-

- -

-

-

-

-

-

-

-

1

41 156

32 - -

-

-

(221)

367

-

-

(221)

-

(67)

5

-

(221)

5,304

(90) -



Note 17. Statement of Developer Contributions (continued)

$ '000

S94 CONTRIBUTIONS - UNDER A PLAN

CONTRIBUTION PLAN - COUNCIL WIDE

(59)

-

Borrowings

Cumulative

Internal

894

due/(payable)

-

1,097

3,738

-

(5,670)

-

(2,010)

(1,005)

3,200

income

140

(330)

outstanding

still (under)

Over or

Projections

Funding

Future

-

-

1,018

(to)/fromYear

(59)

1

-

41

156

25

-

2,253

-

Financial S

tatements 2010

-

79

-

in Year

-

-

-

Library

Other

earned

Community Facilities

Interest Exp

Restricted

-

3,937

page 61

24

909 7

-

Management

Parking

Urban Space

- -

- -

Traffic Facilities

PURPOSE

-

1,221 -

52

Cash

received during the Year

Contributions

70

51 Drainage

Open Space

673 -

Non Cash

Opening

Balance

Total

32

-

599

-

166

322

-

-

-

-

1,005

80

140

948

2,000

200

5,304

5

750

-

-

(599)

-

599

-

-

2,332

Held asInternal

111

Asset

-

(360)

(1,911)

(1,300) (272)

785

(4,929)

(1,856) (13,945)

(2,892) 308

322

(1,280)

(754)

(169) - -

(4) 160 -

6,785 (221)

-

367

-

32

during

(5)

(90)

33

-

Borrowing

Expenditure

(67)




Note 18. Contingencies & Other Assets/Liabilities Not Recognised

$ '000

The following assets and liabilities do not qualify for (ii) Statewide Limitedrecognition in the Balance Sheet, but their knowledge& disclosure is considered relevant to the users of Council is a member of Statewide Mutual, a mutualCouncil's Financial Report. pool scheme providing liability insurance to Local

Government.

LIABILITIES NOT RECOGNISED: Membership includes the potential to share in eitherthe net assets or liabilities of the fund depending on

1. Guarantees its past performance. Council’s share of the NetAssets or Liabilities reflects Councils contributions to

(i) Defined Benefit Superannuation the pool and the result of insurance claims within Contribution Plans each of the Fund Years.

Council participates in an employer sponsored The future realisation and finalisation of claimsDefined Benefit Superannuation Scheme, and makes incurred but not reported to 30/6 this year may resultcontributions as determined by the Superannuation in future liabilities or benefits as a result of pastScheme's Trustees. events that Council will be required to fund or share

in respectively.Member Councils bear responsibility of ensuring there

are sufficient funds available to pay out the required (iii) StateCover Limitedbenefits as they fall due.

Council is a member of StateCover Mutual LimitedThe Schemes most recent full actuarial review and holds a partly paid share in the entity.indicated that the Net Assets of the Scheme werenot sufficient to meet the accrued benefits of the StateCover is a company providing workersSchemes Defined Benefit member category and that compensation insurance cover to the NSW Localmember Councils will need to make significantly Government Industry and specifically Council.higher contributions from 2009/10 & beyond.

Council has a contingent liability to contribute furtherThe Local Government Superannuation Scheme equity in the event of the erosion of the Company'shas provided Council with an estimate of $2,340,564 capital base as a result of the company's pastas its share of the net deficit. As this is only an performance and/or claims experience or as aestimate Council has not recorded any net liability of any increased prudential requirements of APRA.from it's Defined Benefit Scheme obligations in accordance with AASB 119. These future equity contributions would be required

to maintain the company’s minimum level of NetFuture contributions made to the defined benefit Assets in accordance with its Licence Requirements.scheme to rectify the net deficit position will berecognised as an expense when they become (iv) Other Guaranteespayable - similar to the accounting for DefinedContributions Plans. Council has provided no other Guarantees other than

those listed above.

page 62




Note 18. Contingencies & Other Assets/Liabilities Not Recognised (continued)

$ '000

LIABILITIES NOT RECOGNISED (continued):

2. Other Liabilities ASSETS NOT RECOGNISED:

(i) Third Party Claims (i) Land Under Roads

The Council is involved from time to time in various As permitted under AASB 1051, Council has electedclaims incidental to the ordinary course of business not to bring to account Land Under Roads that itincluding claims for damages relating to its services. owned or controlled up to & including 30/6/08.

Council believes that it is appropriately coveredfor all claims through its Insurance Coverage anddoes not expect any material liabilities to eventuate.

(ii) S94 Plans

Council levies Section 94/94A Contributions uponvarious development across the Council area throughthe required Contributions Plans.

As part of these Plans, Council has received fundsfor which it will be required to expend the monies inaccordance with those Plans.

As well, these Plans indicate proposed futureexpenditure to be undertaken by Council, which willbe funded by making levies and receipting funds infuture years or where a shortfall exists by the use ofCouncil's General Funds.

These future expenses do not yet qualify as liabilitiesas of the Reporting Date, but represent Councilsintention to spend funds in the manner and timingset out in those Plans.

page 63




Note 19. Controlled Entities, Associated Entities & Interests in Joint Ventures

Council has no interest in any Controlled Entities, Associated Entities or Joint Ventures.

Note 20. Equity - Retained Earnings and Revaluation Reserves

$ '000

a. Retained Earnings

Movements in Retained Earnings were as follows:Balance at beginning of Year (from previous years audited accounts)


b. Changes in Accounting Policies (Prior Period Effects)

c. Other Comprehensive Income (excl. direct to Reserves transactions)

d. Net Operating Result for the Year



g. Other ChangesBalance at End of the Reporting Period

b. Reserves

(i) Reserves are represented by:

- Infrastructure, Property, Plant & Equipment Revaluation ReserveTotal

(ii). Reconciliation of movements in Reserves:

Infrastructure, Property, Plant & Equipment Revaluation Reserve- Opening Balance- Revaluations for the year- Balance at End of Year

TOTAL VALUE OF RESERVES

(iii). Nature & Purpose of Reserves

Infrastructure, Property, Plant & Equipment Revaluation Reserve

- The Infrastructure, Property, Plant & Equipment Revaluation Reserve is used to record increments/decrements of Non Current Asset values due to their revaluation.

121,101

121,101

86,324

207,425

207,425

207,425 9(a)

121,101

296,934

121,101

345,444

20 (d)

Actual

20 (c) 41,168

2010

296,934

- -

- -

7,342

- -

2009

-

-

297,514

-

Actual

-

- (580)

207,425

121,101

121,101

-

Notes

page 64




Note 20. Equity - Retained Earnings and Revaluation Reserves (continued)

$ '000

c. Correction of Error/s relating to a Previous Reporting Period

As part of Council's transition to measuring all it's I,PP&E at FairValues, Council this year reviewed and brought to account Fair Valuesfor the following Asset Classes:

- Stormwater Drainage - Roads, Bridges, Footpaths- Plant & Equipment

As part of that evaluation & measurement process, the remaininguseful life of each asset has been reassessed to actual.

This reassessment has resulted in a material difference as to wheresome assets actually sit in relation to their asset life cycle relative towhat the value of accumulated depreciation in Council's FinancialReports had previously indicated.

Council does not have sufficient and reliable information that willallow the restatement of information prior to 30/6/09 (the closing datefor the comparative figures in this report).

As a result, Council has adjusted the accumulated depreciation forthe following asset classes as at 30/6/10 to reflect the correct valueof accumulated depreciation;

Stormwater Drainage (increase)/decrease to accumulated depreciation

Roads, Bridges, Footpaths (increase)/decrease to accumulated depreciation

Plant & Equipment (increase)/decrease to accumulated depreciation

Plant & Equipment (increase)/decrease to accumulated depreciation

This adjustment resulted in net increase / (decrease) in Council'sAccumulated Surplus.

In accordance with AASB 108 - Accounting Policies, Changes inAccounting Estimates and Errors, the above Prior Period Errorshave been recognised retrospectively.

- Adjustments to Opening Equity - 1/7/08 (relating to adjustments for the 30/6/08 reporting year end and prior periods)

- Adjustments to Closing Equity - 30/6/09 (relating to adjustments for the 30/6/09 year end)

Total Prior Period Adjustments - Prior Period Errors

d. Voluntary Changes in Accounting Policies

Council made no voluntary changes in any accounting policies during the year.

Notes 2009 Actual

-

-

41,168

- 41,168

-

(17,198)

41,168

(1,482) 1,482

58,366

Actual 2010

page 65




Note 21. Financial Result & Financial Position by Fund

Income Statement by Fund$ '000

Council does not have Water and Sewer Funds

Note 22. "Held for Sale" Non Current Assets & Disposal Groups

Council did not classify any Non Current Assets or Disposal Groups as "Held for Sale"

Note 23. Events occurring after Balance Sheet Date

Events that occur after the reporting date of 30 June 2010, up to and including the date when the financialstatements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditors' Report as the appropriate "authorised for issue" daterelating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" date is 30/09/10.

Council is unaware of any material or significant "non adjusting events" that should be disclosed.

Note 24. Discontinued Operations

Council has not classified any of its Operations as "Discontinued".

Actual

2010 2010 2010

Actual Actual

2010

2010 2009

Actual Actual

Actual

page 66




Note 25. Intangible Assets

$ '000

Intangible Assets represent identifiable non-monetary asset without physical substance.

Intangible Assets are as follows;

Opening Values:Gross Book Value (1/7)Accumulated Amortisation & ImpairmentNet Book Value - Opening Balance

Movements for the year- Purchases- Development

- Amortisation charges

Closing Values:Gross Book Value (30/6)Accumulated Amortisation & Impairment

TOTAL INTANGIBLE ASSETS - NET BOOK VALUE 1

1. The Net Book Value of Intangible Assets represent:

- Software

Note 26. Reinstatement, Rehabilitation & Restoration Liabilities

Council has no outstanding obligations to make, restore, rehabilitate or reinstate any of its assets/operations.

Amount Amount

Carrying

2010

Carrying

Actual

2009

-

131 - -

(4)

131

135 - -

131

(4)

- -

32 103

-

- -

- -

-

-

Actual

page 67




Note 27. Additional Council Disclosures - Council Information

Principal Place of Business:Civic Centre, City MallMacMahon StreetHURSTVILLE NSW 2220

Contact Details Opening HoursMailing Address: Customer Service - 8.30am - 4.30pm Monday to FridayPO Box 205 Phone - 8.30am - 5.00pm Monday to FridayHURSTVILLE BC NSW 1481

Telephone: 02 9330 6222 Internet: www.hurstville.nsw.gov.auFacsimile: 02 9330 6223 Email: [email protected]

Officers Elected MembersGENERAL MANAGER MAYORVictor G D Lampe Philip Sansom

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORSKaren Foldi Jack Jacovou

Bill PickeringPUBLIC OFFICER Anne WagstaffWarren Park Con Hindi (Deputy Mayor)

Beverley Giegerl OAMAUDITORS Steve McMahonHill Rogers Spencer Steer David PerryLevel 5 Vince Badalati1 Chifley Square Andrew IstephanSYDNEY NSW 2000 Nancy Liu

Clifton WongOther InformationABN: 24 782 671 133

page 68

Hurstville City Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2010


SPFS 2010


Special Purpose Financial Statements for the financial year ended 30 June 2010

Council has resolved that it does not operate any Business Activities as set out in theNational Competition Policy and Division of Local Government Guidelines.

As a result of this resolution, Council has no reportable Special Purpose Financial Statements.

page 1

Hurstville City Council SPECIAL SCHEDULES for the year ended 30 June 2010


Special Schedules 2010


Special Schedules for the financial year ended 30 June 2010

Contents

Special Schedules1

Net Cost of Services

Statement of Long Term Debt (all purposes)

Statement of Internal Loans (Sect. 410(3) LGA 1993)

Water Supply - Income StatementWater Supply - Balance Sheet

Sewerage Service - Income StatementSewerage Service - Balance Sheet

- Notes to Special Schedules No. 3 & 5

Condition of Public Works

Financial Projections

1 Special Purpose Schedules are not audited.

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,the Department of Environment, Climate Change and Water, andthe Division of Local Government (DLG).

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.

(ii)

- Special Schedule No. 6

6

4- Special Schedule No. 7

n/a

n/a

- Special Schedule No. 2(b)

- Special Schedule No. 3n/a


(i)

- Special Schedule No. 5 n/a

Page

2

n/a

n/a


- Special Schedule No. 2(a)n/a


page 1



Special Schedule No. 1 - Net Cost of Services for the financial year ended 30 June 2010

$'000

Administration

Public Order and Safety

Enforcement of Local Govt RegsAnimal ControlTotal Public Order & Safety

Health

EnvironmentOther Environmental ProtectionSolid Waste ManagementStreet CleaningDrainageTotal Environment

Community Services and EducationAdministration & EducationSocial Protection (Welfare)Aged Persons and DisabledChildrens ServicesTotal Community Services & Education

Housing and Community AmenitiesPublic ConveniencesStreet LightingTown PlanningTotal Housing and Community Amenities

Water Supplies

Sewerage Services

-

-

- -

-

Expenses from continuing operations Non Capital Capital

Income fromcontinuing operations

1,311

-

1,197

- -

-

2,683

-

2,383 -

81

1,197

48

12,754

1,222

-

(954)

- (1,635) (102)

227

1,843

-

1,997

1,219

- -

3,353

63

-

12,280

125

4

265

249

23 137

9,081

208

496

996

2,622

24 644

975

(345)

-

(1,303)

-

132

-

3,811 1,141

-

- 170

-

-

10,212 -

Function or Activity

-

Fire Service Levy, Fire Protection, Emergency Services -

- 1,968

Net Costof Services

(359) (1,174)

(10,786)

(826)

(352)

9,959

2,270

(132)

(612)

(970)

(24) 32

(1,993)

-

(975)

878

(2,068)

18

22

page 2



Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2010

$'000

Recreation and CulturePublic LibrariesMuseumsCommunity Centres and HallsOther Cultural ServicesSwimming PoolsParks & Gardens (Lakes)Other Sport and RecreationTotal Recreation and Culture

Fuel & Energy

Agriculture

Mining, Manufacturing and Construction

Building ControlTotal Mining, Manufacturing and Const.

Transport and CommunicationUrban Roads (UR) - LocalParking AreasFootpathsOther Transport & CommunicationTotal Transport and Communication

Economic AffairsOther Economic AffairsTotal Economic Affairs

Totals – Functions

General Purpose Revenues(1)

Share of interests - joint ventures &associates using the equity method

NET OPERATINGRESULT FOR YEAR

(1) Includes: Rates & Annual Charges (incl. Ex Gratia), Untied General Purpose Grants & Interest on Investments (excl. Restricted Assets)

Non Capital

644

4,661 141

Income fromcontinuing operations

-

- 30

-

134

867

665 2,479 10,831

492

-

426

-

256

18

163

338

517

-

1,307 2,944

Expenses from continuing operations

40

- (513)

Net Costof Services

(123) (4,283)

1,198

57,334

867

4,212

57,605

-

57,334

-

7,071 24,923

1,198 1,952 5,015 1,952 5,015

9,178 3,719 789

-

336 422 118

335

413

-

959

3,319 692 955

(441) -

(663)

(2,918)

-

(441)

(93)

-

70

(2,780) -

(8,282) 173

5,769

(4,670)

970

(2,561)

5,769

7,342

-

32,682 -

7,071

Function or Activity

32,682

426

1,925

1,030

-

(161)

(25,340)

-

-

Capital

page 3


Special Schedule No. 7 - Condition of Public Works as at 30 June 2010

$'000

page 4

Special S

chedules 2010

2

2,500 395 395

-

1,725

1,951

2,900

1,677

3,329 34

2,154 34

281 84

281 120

33 100

100

26 498 500

50

66

400 150

2 2

300 377 410

standard (1)

<<<<<<<< per Section 428(2d) >>>>>>>>

500 2

3 4,698

2

911 2

2,546

354

61,889 22,855

2,343 250 3 200 2

2,843

5,920 7,225 653 776 394 2,940

- 13,145 1,429

Council OfficesCouncil Works Depot

-

102

0-50%

0-50%

0-50%

-

Childcare Centre(s)

Council Halls

Museum5,609

0-50%

80

54

- 0-50%Library

73,536 42,477 2,900

500 2

11,431 36,524 2 235,790 86,903

47,955 346 - 23 -

322,693

sub total

Footpaths 1.40%

1.00%

- 1,446

- 2,631

1,842 -

116,013

2,697

84,744

Annual Annual

Required(2) Current(3)

252 4,685 -

Maintenance

138 46

-

MaintenanceImpairment

<<<<<<<<<<<< per Note 9 >>>>>>>>>>>>

752

Carrying

Valuation

Depreciation

CostAmount

bring up to a

Condition#condition

Asset satisfactory&

(WDV)

Expense

per Note 4

Estimated

Accumulated cost to

(%)

Asset Category

Buildings 0-50%

Amenities/Toilets

per Note 1

0-50%

Dep'n. Dep'n.

($)

ASSET CLASS

Other Council Buildings

Public Roads

sub total

Sealed Roads, Kerb & Gutter

Rate

3,000 1.00% 2,386

98,695 2,747

- 274,700 361

3,000 373,395 Car Parks

134 248 0-50% 11 - 382

- 382 134 248 Aquatic Centre 0-50% 11

40 32 300 100

3 700 350 280


Special Schedule No. 7 - Condition of Public Works (continued) as at 30 June 2010

$'000

Notes:(1). Satisfactory refers to estimated cost to bring the asset to a satisfactory condition as deemed by Council. It does not include any planned enhancements to the existing asset.

(2). Required Annual Maintenance is what should be spent to maintain assets in a satisfactory standard.

(3). Current Annual Maintenance is what has been spent in the current year to maintain assets.

# Asset Condition "Key" - as per NSW Local Government Asset Accounting Manual:

Near Perfect - Ranges from New or Good Requires Major Reconstruction - Ranges from Poor to Critical

Superficial Deterioration - Ranges from Generally Good to Fair Asset Unserviceable - Critical, Beyond Repair

Deterioration Evident - Ranges from Fair to Marginal

page 5

3

5,780 10,400

Special S

chedules 2010

329 4,500

Dep'n.Dep'n. Accumulated cost to

bring up to a

Estimated

Expense&

Depreciation

(%) ($)Current(3)

Annual

Impairment (WDV)AnnualAsset satisfactoryAmount

Carrying Required(2)

Maintenancecondition MaintenanceCondition#

Rate

Cost ValuationASSET CLASS Asset Category

per Note 1 per Note 4 <<<<<<<< per Section 428(2d) >>>>>>>><<<<<<<<<<<< per Note 9 >>>>>>>>>>>>

standard (1)

1.10% 680 60,276 18,001 329 3 500 78,277 4,500 Drainage Works Inlets, Outlets and Conduits

4,160

sub total 500 78,277 18,001 60,276

232,507 335,178

680

5,126 -

2

567,685 TOTAL - ALL ASSETS

1 4

5

- -



Special Schedule No. 8 - Financial Projections as at 30 June 2010

(1)

$'000

(i) RECURRENT BUDGETIncome from continuing operationsExpenses from continuing operations


(ii) CAPITAL BUDGETNew Capital Works (2)

Replacement/Refurbishment of Existing AssetsTotal Capital Budget

Funded by:– Loans– Asset sales– Reserves– Grants/Contributions– Recurrent revenue– Other

Notes:

(1) From 09/10 Income Statement.

(2) New Capital Works are major non-recurrent projects, eg new Leisure Centre, new Library, new Swimming pool etc.

(3) If Council has only adopted 3 years of projections then only show 3 years.

430 3,804 3,574 3,728

9,127 6,429

- 3,000

1,363 479 3,931 6,010 877

1,239

3,417

6,259 1,187 20 2,108 9

14,442 28,033 9

3,490

6,259

-

2,880 14,545 987 948 959

1,074 963

2,317 - 942

6,750 20,426 6,373 6,259

56 -

6,429 14,442

7,342

28,033 9,127

3,080 7,692 7,607 6,047

96 1,849

64,676 63,758 57,334 61,909

Forecast(3)Forecast(3) Forecast

(80)

13/14

65,290 63,788 63,708 62,735

62,639

12/13 10/11

313

65,603

Actual 09/10

Forecast 11/12

page 6

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