annual report 2014/2015 - shire of carnarvon · annual report 2014/2015 . 2 ... 2014/2015...
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SHIRE OF CARNARVON
ANNUAL REPORT
2014/2015
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Shire President’s Message .............................................................................................................................................. 6 Your Council .................................................................................................................................................................... 8 Summary - Council Meeting Attendance ........................................................................................................................ 9 Main Street Enhancement Works ................................................................................................................................ 11 Foreshore Completion Works ....................................................................................................................................... 11 New Council Chambers ................................................................................................................................................. 11 New Local Planning Strategy & Local Planning Scheme ............................................................................................... 11 Land Use Structure Plans .............................................................................................................................................. 12 Blowholes Reserve Management Plan ......................................................................................................................... 12 Economic Tourism Action Plan ..................................................................................................................................... 12 Statutory Compliance Matters ..................................................................................................................................... 12 Road Works Program .................................................................................................................................................... 12 Waste Management Services ....................................................................................................................................... 12 Youth Outreach Services............................................................................................................................................... 12 Portfolio ........................................................................................................................................................................ 15 Rates ............................................................................................................................................................................. 15 Reserves ........................................................................................................................................................................ 15 Loan Liability ................................................................................................................................................................. 16 Rates Income Comparison with Debt Service .............................................................................................................. 16 Information & Communication Technology ................................................................................................................. 17 General Integrated Planning ......................................................................................................................................... 17 COMMUNITY DEVELOPMENT Community Growth Funds ............................................................................................................................................ 18 Junior Sports Development Funds ................................................................................................................................ 18 Events ........................................................................................................................................................................... 18 YOUTH OUTREACH SERVICE Community Development............................................................................................................................................. 19 SPORT AND RECREATION Club Development Program ......................................................................................................................................... 19 LIBRARY AND ART GALLERY Library & Art Gallery ..................................................................................................................................................... 20 Library Statistics ............................................................................................................................................................ 21
INDEX SHIRE PRESIDENT’S MESSAGE
GOVERNANCE
CORPORATE SERVICES
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ENVIRONMENTAL HEALTH Food Act Administration .......................................................................................................................................... 23 Caravan parks & Camp Grounds Act Administration............................................................................................... 23 Public Buildings ........................................................................................................................................................ 23 Onsite Wastewater Treatment and Disposal .......................................................................................................... 23 Aquatic Facilities ...................................................................................................................................................... 23 Lodging Houses ........................................................................................................................................................ 23 Mosquito Management Program Activity ............................................................................................................... 23 Recycled Water Scheme Compliance Management and Monitoring ..................................................................... 24 Recreational Water Safety ....................................................................................................................................... 24 Fascine Development Precinct Waterways Monitoring Program ........................................................................... 24 Licenced Facilities Monitoring & Compliance Management ................................................................................... 24 Disaster Management ............................................................................................................................................. 24 Disease Investigation ............................................................................................................................................... 24 Health Related Complaints ...................................................................................................................................... 24 PLANNING AND DEVELOPMENT Strategic & Policy Outcomes and other Planning Initiatives 2014/2015................................................................. 24 Coral Bay Planning ................................................................................................................................................... 25 East Carnarvon/Kingsford Planning ......................................................................................................................... 26 Babbage/Whitlock Island Planning .......................................................................................................................... 26 Local Planning Strategy ............................................................................................................................................ 26 Town Planning Scheme Review ............................................................................................................................... 27 Statutory Planning ................................................................................................................................................... 27 Development Control Unit ...................................................................................................................................... 27 EMERGENCY SERVICES Local Emergency Management Committee (LEMC) ................................................................................................ 28 Shire and Bushfire Brigades ..................................................................................................................................... 28 Tropical Cyclone Olwyn ........................................................................................................................................... 28 ECONOMIC DEVELOPMENT, ENTERTAINMENT & TOURISM Visitor Centre ........................................................................................................................................................... 30 Civic Centre .............................................................................................................................................................. 31 Economic Tourism Development Action Plan ......................................................................................................... 32 Draft Blowholes Reserve management Plan ........................................................................................................... 32 Shire of Carnarvon Demographic & Economic Profile ............................................................................................. 33 BUILDING SERVICES Building Staff ............................................................................................................................................................ 33 Building Construction Applications Summary 2014/2015 ....................................................................................... 33 RANGER SERVICES Ranger Team & Duties ............................................................................................................................................. 34 AQUATIC CENTRE Aquatic Centre ......................................................................................................................................................... 35 Recreational Swimming Attendances ...................................................................................................................... 36 2014/2015 Recreation Swimming Participation Graph ........................................................................................... 36
DEVELOPMENT SERVICES
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Operations ............................................................................................................................................................... 38 Strategic Administration .......................................................................................................................................... 38 MAJOR PROJECTS Fascine Upgrade Completion ................................................................................................................................... 39 Robinson Street Revitatlisation ............................................................................................................................... 40 INFRASTRUCTURE MAINTENANCE Roads & Works ........................................................................................................................................................ 41 Parks & Gardens ...................................................................................................................................................... 42 Airport Infrastructure .............................................................................................................................................. 43 Strategic Community Plan ....................................................................................................................................... 45 Disability Access & Inclusion Plan ............................................................................................................................ 45 Record Keeping Plan ................................................................................................................................................ 46 Public Interest Disclosure ........................................................................................................................................ 46 Freedom of Information .......................................................................................................................................... 46 National Competition Policy Statement .................................................................................................................. 47 Register of Minor Complaints .................................................................................................................................. 48 Corporate Business Plan .......................................................................................................................................... 49 Workforce Plan ....................................................................................................................................................... 49 Annual Financial Report .......................................................................................................................................... 51 Auditors Report ....................................................................................................................................................... 61
STATUTORY REPORTS
FINANCIAL REPORTS
INFRASTRUCTURE
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PRESIDENT’S MESSAGE
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Since my last annual report there had again been a significant natural event adversely affecting the Shire. This time Tropical Cyclone Olwyn, a Category 3 Storm, struck the Gascoyne coast on 18th March 2015 with destructive winds that caused variable damage to many houses, commericial and industrial buildings, plantations and social infrastructure that stretched the resources of the Shire and community. If not for the resiliant communities of Carnarvon and Coral Bay the recovery efforts would have been more significant and challenging. In light of this I wish to express
my appreciation for the effort of all involved including, yet not limited to, local contractors, the community, emergency services volunteers, Shire employees and all
Government agencies both during, and after the event. I also extend my sincere sympathies to all in the community, plantation, pastoralists and local businesses who suffered as a result of this event. However, notably, this occurance continues to demonstrate the vunerability of the Shire to an array of natural events that includes bushfires and floods, as well as cyclones, all of which have been experieinced in recent years. Therefore I intend, with the support of Council and asistance from the CEO, to impress upon the respective teirs of government the importance of emergency management and support for the Gascoyne Region. Importantly though, this financial year did see the State Government fulfill its commitment in completing the Flood Mitigation works in Carnarvon to ensure when (not if), the next big river is experienced. In this regard I commend the State Government for delivering on this very important infrastructure. With this said, I am now seeking the recognition and support for drought proofing in investigating various form of water retention. As for the year past in relation to core business of Local Government, I would like to acknowledge the hard work and dedication of Councillors and Staff. Their efforts has seen works progressed on enhancing the Main Street in response to concerns raised by the local community, and finalisation works of the Fascine Foreshore with the addition of three new cantilevered jetty structures, as well as soft and hard landscaping to complete what will be a major attraction for local residents and visitors alike. The establishment of a new Council Chambers in the old library building is also been progressive and proved to be a positive step forward for the Shire.
In the past 12 months the Council has also been proactive in dealing with compliance matters. Specifically, the Shire has moved to address matters of non-compliance associated with workers’ accommodation in Coral Bay, and ensuring repair and reconstruction works arising from Cyclone Olwyn to accord with relevant planning, building and health standards, where applicable. Additionally, I wish to acknowledge the Shire’s planning efforts that has seen the Carnarvon Airport Structure Plan, Coral Bay Settlement Structure Plan, and the Babbage and Whitlock Island Structure Plan completed. These plans have been endorsed by the State
Governemnt and clearly map a way forward for future development within these specific areas of the Shire. Notably, the State Government has also progressed in delivering on its other commitments with a new Power Station, Courthouse and Police Station, establishment of a combined Community College (High School and Primary School), and upgrades to the Carnarvon Regional Hospital. I congratulate the State Government, and in particular the Local Member the Hon. Vince Cattania MLA, for the progression of these very important and valued projects.
SHIRE PRESIDENT’S MESSAGE
Karl Brandenburg
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In closing, it would be remiss of me to not acknowledge the support of my fellow Councillors in respecting each other, and working as a team to deliver on the vision of a better Carnarvon more broadly. To this end, look forward to an ongoing, amiable and proactive relationship with Council, Staff, and the community to make the Shire of Carnarvon an attractive and better place to live and visit.
Karl Brandenburg SHIRE PRESIDENT
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YOUR COUNCIL
Neil Ganzer COUNCILLOR
TOWN
Dennis Durmanich COUNCILLOR PLANTATION
Alexander Fullarton COUNCILLOR
GASCOYNE/MINILYA WARD
Naomi McMahon COUNCILLOR
TOWN
Julee Nelson COUNCILLOR –
TOWN
Max March COUNCILLOR
TOWN
Kane Simpson COUNCILLOR CORAL BAY
Karl Brandenburg SHIRE PRESIDENT
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SUMMARY OF ATTENDANCES COUNCIL MEETINGS
1 JULY 2014 TO 30 JUNE 2015
MEMBER
MTGS HELD
DURING OFFICE
ATTENDANCE
%
ATTENDED
LOA BRANDENBURG, K COUNCILLOR – TOWN WARD
13
13
-
100
GANZER, N COUNCILLOR – TOWN WARD
13
8
-
61
MCMAHON, N COUNCILLOR – TOWN WARD
13
11
-
85
NELSON, J COUNCILLOR – TOWN WARD
13
12
-
92
SIMPSON, K COUNCILLOR – CORAL BAY WARD
13
12
-
92
DURMANICH, D COUNCILLOR – PLANTATION WARD (DISQUALIFIED MAY 2015)
11
4
2
36
MARCH, M COUNCILLOR – TOWN WARD
13
11
-
85
FULLARTON, A COUNCILLOR – GASC/MINILYA WARD
13
13
-
100
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GOVERNANCE
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It is with much pleasure that I provide my annual report as Chief Executive Officer with the Shire of Carnarvon.
Similar to the 2013/2014 financial year, this year has proved equally challenging in many ways. Firstly, the attraction and retention of quality employees has been at the forefront, with the Council adopting a policy in September 2014 that offers additional employee
incentives as a measure to stabilize the Shire’s workforce. The Council and Shire administration has also worked diligently on continued improvement to the organisational governance, a key finding and recommendation of the Department of Local Government and Communities 2013 Probity Audit Report. In this regard, I have overseen the established a Governance Section effectively centralizing the respective functions of records management, purchasing, tenders, contracts, leases, internal processes (ie policies, procedures, annual work plans), external grants funding and acquittal processes, IT Training, and internal auditing. This has seen a progressive improvement in structure and performance of the administration against legislative standards, although it is acknowledged there is considerable work still to be done over the coming years. I am also delighted to report on some of the Shire’s other efforts during the 2014/2015 financial year that has included:
Main Street Enhancement Works – This has involved the use of the Shire workforce and resources, and resulted in planting of lawn in the central drainage swale, minor modifications to increase parking, installation of timber board walks, modification to the three town centre roundabouts, additional landscaping, and removal of some speed humps. Further improvements are planned for the 2015/2016 financial year with removal of the remaining speed humps, and installation of public art and a town centre entry statement with feature lighting.
Foreshore Completion Works – The Shire through a formal tender process engaged civil construction contractors, Insitu Construction, to progress completion of programmed works for the Fascine Foreshore following consultation with the local community. As identified, these works consist of installation of three new cantilevered jetty structures with floating pontoons, a lower level pedestrian pathway with disable ramps, installation of extensive lawn, garden areas, shade shelters, gas BBQ’s, drink fountains, outdoor gym equipment, a new sealed car park at Brown Street/Olivia Terrace junction, and pedestrian lighting. Extension of the surge protection wall around Baxter Park is also to be undertaken. Following the tender process the on-ground works commenced in February 2015, and are scheduled to be completed in October 2015.
New Council Chambers – During the year works commenced on fit out of the former library building in Stuart Street to become the new Council Chambers, with the old Chambers being set aside for conversion too much needed office accommodation for the Shire administration. It is pleasing to note the refurbished building now presents as a more contemporary meeting place for Council meetings and civic functions.
New Local Planning Strategy and Local Planning Scheme – The Shire’s Planning Section has actively been progressing the preparation of two overarching planning instruments for the Shire, namely the Local Planning Strategy (LPS) and new Local Planning Scheme No.13. Both documents, funded by the Shire and Department of Planning, are scheduled for completion in mid 2016. Upon completion these documents will be integral in paving the way for future land use and development for across the Shire.
CHIEF EXECUTIVE OFFICER’S REPORT
Ian D’Arcy
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Completion of Land Use Structure Plans – This past year saw completion of three important Structure Plans for the respective Carnarvon Airport, Coral Bay Settlement and Babbage/Whitlock Islands precincts, with all three Plans receiving final endorsement from the Western Australian Planning Commission. Importantly, these Plans together with a new Local Planning Strategy and Local Planning Scheme will prove integral to setting the strategic direction for future development in these areas that afford potential investment and economic growth. An East Carnarvon/Kingsford Structure Plan is also expected to be completed in 2015/2016 financial year, together with preparation of a new Structure Plan for the Horticultural/Plantations Precinct as part of the State Government’s ‘Food Bowl’ initiative being facilitated by the Department of Agriculture and Food.
Blowholes Reserve Management Plan (BRMP) - As directed by the Minister for Lands in 2012, the Council continued to progress preparation of the BRMP, notwithstanding stern opposition from many of the shack owners and the Blowholes Protection Association (BPA). With resolve, the BRMP was completed involving consultation with various stakeholders, and input from the Department of Lands, resulting in the document being submitted to the Minister for Lands in April 2015 for endorsement. Once executed by the Minister, the Council can proceed with implementation of recommended actions, involving installation of additional day use facilities, erection of directional and interpretive signage, removal of non-compliant shack structures, allocation of forty new shack sites to higher ground, and establishment of sixty caravan and fifteen camping sites in line with the Minister’s direction.
Economic Tourism Action Plan – In light of the slow economy, the Council has embarked on preparation of an Economic Tourism Action Plan in consultation with local industries (ie Pastoral, Horticultural, Tourism, Fishing and Retail) to identify realistic and achievable strategies and actions. One of the key criteria is that the recommended actions can be implemented within a 5 year horizon to stimulate economic growth within the Shire. It is expected this plan will be completed in early 2016.
Statutory Compliance Matters – The Shire has continued to elevate its statutory compliance, both within and externally over the past year. Notably, the Council over the past 12 months pursued minimum compliance for workers’ accommodation at ‘Little Kenya’, located to the rear of the Bayview Holiday Park in Coral Bay. In a proactive approach through mediation in the State Administration Tribunal (SAT), it is pleasing to note that all parties willingly sought to co-operate, ensuring a relatively seamless transition to the required minimum standards as prescribed by the legislation.
Road Works Program – The 2014/2015 year realised completion of the Shire road works program, notwithstanding the onset of Tropical Cyclone Olwyn in March 2015. These works has seen improvements to the Quobba-Gnaraloo and Bush Bay roads, widening and resealing of a number of urban streets, including James Street and Mahoney Avenue, and various works to the Shire’s rural road network, inclusive of maintenance grading and repair of cattle grid works.
Waste Management Services – The past year yielded improvement to the Shire’s waste management services with particular emphasis on achieving compliance against regulatory licences for the Brown Range and Coral Bay land fill facilities. It is expected the coming year will continue to elevate to a higher level of compliance as the Shire acknowledges its responsibilities under the respective licence conditions.
Youth Outreach Services – The year also experienced expansion of the Shire’s involvement in its Youth Outreach Services with a specific focus on ‘at risk’ youth. With external funding received from the Commonwealth Government’s Indigenous Advancement Strategy (IAS) additional support programs have been introduced, integrated with other social service and education providers, in an attempt to address school attendance and participation, whilst acknowledging the difficulties experienced by many of the youth who are under privileged and disadvantaged on personal level.
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Further, as mentioned in the Shire President’s Message, it is pleasing to note the many state government projects that have been completed, including the Carnarvon Flood Mitigation Stage 2 works, largely managed by Main Roads WA, the State Government’s new Courthouse and Police Station complex and Horizon Power’s new Power Station. Similarly, it is acknowledged the State Government has continued to progress the Carnarvon Community College, Carnarvon Food Bowl Initiative and upgrade of the Carnarvon Regional Hospital for the benefit of the local residents over the past 12 months. So in closing this report, I would like to recognise the efforts of State Government in supporting the Shire of Carnarvon this financial year. I would also like to thank all involved in attending to the response and recovery of Tropical Cyclone Olwyn, which again has tested the resilience of the local communities of Carnarvon and Coral Bay, and express my sincere appreciation to the Councillors for their continued support and to staff for their un-waivered commitment during a challenging year that closed out with the aftermath of Tropical Cyclone Olwyn.
Ian D’Arcy CHIEF EXECUTIVE OFFICER
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CORPORATE
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Portfolio
Finance
Governance
Youth Services
Library
Information Technology
Council Support
Auditing
Legal
Corporate Compliance.
Rates Rate income increases for the previous four years has been as follows:
Total Increase Average
2011 2012 2013 2014 2015 Over 5 years Annual
Growth
over past
5 Years
3,139,295 3,254,302 3,492,792 3,777,351 4,149,572 1,010,277 7.22%
Differential Rates were again used in the Unimproved Valuation areas of the Shire for Mining, Pastoral and Intensive Horticulture. These rates were adopted by Council, advertised for public comment and endorsed by the Minister as required under the Local Government Act and Regulations. Specified Area Rates were again set for the Coral Bay Refuse Site. The purpose of that Specified Area Rates is detailed in the Financial Report.
Reserves The cash backed reserves remain high due predominantly to the “Unspent Grants and Contributions Reserve”, which is used to remove all grant and contribution funds out of the Shire’s Municipal Fund. In previous years these funds have been retained in the Municipal Funds and though identified as restricted assets, have resulted in an inflated surplus position in the Shire’s Municipal Funds at year end.
The “Unspent Grants and Contributions Reserve”, makes up approximately 75.85% of the total cash backed reserve funds held by Council at the 30 June 2015. Therefore, there are limited cash backed reserves which have been derived from Council’s own resources for areas such as:
Leave Accruals Airport
Plant Replacement Fascine Dredging/Wall Maintenance
Waste Disposal Land and Infrastructure Development
Staff Housing Asset Replacement
IT Replacement
EXECUTIVE MANAGER, CORPORATE SERVICES REPORT
John Nuttall
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Loan Liability The Shire’s loan liability at the 30 June 2015 was $1,125,223. Below is a history of the Shires Loan Liability position at the end of each financial year since 2004:
Year Ending Loan Principle Outstanding
30/06/2015 $1,125,223
30/06/2014 $1,612,404
30/06/2013 $462,958
30/06/2012 $557,033
30/06/2011 $645,181
30/06/2010 $622,423
30/06/2009 $534,159
30/06/2008 $697,926
30/06/2007 $337,692
30/06/2006 $655,905
30/06/2005 $1,070,927
30/06/2004 $1,503,623
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Rates Income comparison with Debt Service
Information and Communication Technology Information and Communication Technology (ICT) continues to be a significant operational resource demand on the Shire. An ICT equipment replacement plan is now in place which has moved the Shire away from the “break and fix” practices of the past.
General The Corporate Services Department is functioning well however, due to limited resources and the ever-increasing compliance demands placed upon Local Governments, there has in the past been inadequate time and resources devoted to focussing on the major issues affecting all Local Government such as financial sustainability, asset management, etc. These issues are now being addressed as part of the Local Government Structural Reform process, which commenced in 2010/2011 and all of those issues are now being addressed with the governance section dramatically increasing in size to assist in dealing with those issues.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Principal Outstanding
Revenue
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
Rates Income
Principal Outstanding
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The following portfolios are the responsibility of the Community Development Department
Community Plans
Sport and Recreation
Community Consultation & Engagement
Community Funding
Community Events
Shire Media and Communications
Culture and History Community Growth Funds Commitment from Council to support new projects throughout the community has resulted in just over $46 600 being distributed to community groups, services and clubs and $12 442 towards a post Cyclone Olwyn community event that was held in August. Just under $60 000 of subsidized rates were provided to not for profit community groups and organizations, as well as funding to varied projects including:
Junior Sports Development Funds Clubs have the opportunity to apply for funds to assist with costs associated with attending competitions and training clinics for juniors. The funds assist with transport and accommodation. These grants will continue to offer services, clubs and organizations throughout Carnarvon the opportunity to develop new initiatives and to support their continued development. Events The Shire provide regular community events and have also worked collaboratively with agencies, and the community to deliver positive opportunities to engage family, young people and Senior Citizens. These events have been successful in promoting Carnarvon and bringing together the community to celebrate our region and its diversity. We have assisted with finances and staff to ensure the events were a success. Our involvement has included:
Australia Day breakfast awards and activities Community and school ‘Keep Carnarvon beautiful’ clean ups
NAIDOC week Inclusion WA – School holiday programs
Carnarvon Amateur Swimming Club
Lions Club of Carnarvon
Carnarvon Piston Association
Carnarvon Chamber of Commerce
Carnarvon Softball Association
Gascoyne Food Council
Carnarvon Rifle Club
Carnarvon Speedway ClubTropiCOOL community event
Isolated Children’s Parents Association Post Cyclone Community event
COMMUNITY DEVELOPMENT
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Seniors Week
Royal Show Display- Gascoyne District Display
National Youth Week
Disabilities Week
Gascoyne Off Road Racing Club- Assistance with “Gascoyne Dash” and Carnarvon 360
Carnarvon TropiCOOL event
Carnarvon Christmas Festival
Christmas Food Appeal
Post Cyclone Olwyn community event Youth Outreach Service: Council and the Shire continued to support the Carnarvon Youth Outreach Service to ensure that young people are supported across the Shire. The service is generously funded by the Department of Child Protection, the Department of Corrections, and more recently by Prime Minister and Cabinet’s Indigenous Advancement Strategy. All have a commitment to ensuring young people at risk are supported to reduce harm and to provide opportunity to reach their full potential. Community Development Our Community Development focus is on ensuring the Shire’s community has been kept well informed about Shire business and activities. The Shire introduced its own Facebook page in early 2015 to keep up with the town’s trend of following social media. We were able to utilise our website more regularly, while our radio announcements, information pieces appearing regularly via the ‘What’s On’ in the local paper ensured the community knew what was going on and also through a robust email network that continues to grow.. Engaging with the community, supporting and assisting residents and groups work towards their aspirations and celebrate the many community assets was also a core focus for Community Development. Our Community Development officer who regularly met with the Seniors Group, service clubs, and individuals on various activities, also had a core task of co-ordinating our Shire events as well as assist event organisers through our Shire event application process which has been worked on to make it user friendly. Sport and Recreation The Club Development program has the capacity to provide valuable support and assistance to sport and recreation Clubs in Carnarvon. One of the identified areas to build on is being more visible throughout the community and on various club nights. With the Club Development Officer position being part – time, the Community Development Team worked together to ensure that clubs received any information and support they were seeking. The KidSport program provides assistance to low income and disadvantaged families that allows their children to participate in sports. The programme provides funding to Clubs to assist with costs of fees, uniforms and equipment. During the 14/15 financial year KidSport applications were approved with $1,900.00 provided to ensure kids and young people could enjoy the benefits associated with being involved with a sporting club. One area that continues to be improved within Kidsport, is the receiving of invoices from sports clubs so that the Shire can process payments towards participate fees and registrations.
Christmas Baby Swim
2011
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A positive relationship also continued with the Gascoyne Office of the Department of Sport and Recreation, ensuring a strategic approach to sport and recreation occurred across the Gascoyne region.
The Library and Art Gallery services have continued to expand throughout 2014-2015, working towards meeting the social, cultural, educational and recreational needs of the Carnarvon community and in keeping with the Strategic Community Plan. The library stock remains at above 20,000 physical items, incorporating 75% State Library WA stock and 25% Local stock. As well as books, DVDs, audio books and magazines, patrons can access shared Public Libraries digital e-Resources funded through the State Library of WA. Additionally, Carnarvon patrons have continued to make good use of the inter-library loans system, which allows access to all public library stock within WA. The six public-access computer terminals, providing internet access, Microsoft office applications and printing, and access to State Library e-resources, continue to be in demand, particularly with travellers and temporary residents. Wireless internet access is also available 24 hours, 7 days per week. The Community Room provides space for accessing daily newspapers, magazines, reference materials and community information. This area has also become popular as a space for after-school homework groups and tutoring. Hire of the Library Meeting Room has increased with regular bookings from commercial, non-profit and volunteer groups. Young People’s Services, while continuing to run weekly Story Time and Baby Rhyme Time sessions as part of the Better Beginnings early literacy programme, has formed partnerships with Best Beginnings, PCYC and Durack, offering Story Time and craft sessions for specific target groups and outreach programmes at Mungallah Village. The library has also participated in the School Holiday Inclusion Program. Once again, through a grant obtained from the Children’s Book Council WA, Carnarvon Library was able to secure the services of storyteller, Clare Stace, for Children’s Book Week in August 2014. Funding supported visits to all Carnarvon schools and to Exmouth schools in partnership with Exmouth Public Library.
Adult services continued to expand with several author talks, computer tuition, craft activities and an Anzac Day morning tea, at which the Friends of Local History volunteer group was re-launched. The newly-appointed Local History resource room was promoted, and an overview of services available provided, including details about computer access for genealogical research.
LIBRARY AND ART GALLERY
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A major milestone this year was the affiliation with Art on The Move (AOTM). Following staff training in Art Handling and Exhibition Installation, use of the Art Gallery increased, with the first touring art exhibition, Botanica, a photographic exhibition by John Maloney. The Gallery saw a significant increase in visitor numbers, including Carnarvon school group visits due to the popularity of the AOTM Education Event. Statistically, user numbers and memberships have fluctuated. This can be accounted for by the change in borrower trends from physical to digital resources and the evolving uses of library and art gallery space: The following statistics show the library usage for the past three years: Library Statistics
John Nuttall EXECUTIVE MANAGER CORPORATE AND COMMUNITY SERVICES
2012-2013 2013-2014 2014-2015
Total Members 1782 1664 2504
Adults 1388 1330 1992
Children 394 334 512
Total No of items
borrowed
31802 29378 26860 (excluding e-Resources)
Total No of internet &
wireless users
6877 6069 5500
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DEVELOPMENT
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The Shire’s Environmental Health Section has operated with two environmental health officers for most of the year to its deliver and monitor a range of programs and activities to enhance and safeguard public health and promote a safe environment for the well-being of our community. Regulatory programs often required under State law and carried out by the Shire’s Environmental Health Officers is extensive. A summary of regular activities is provided as follows:
Food Act administration – There are 91 food businesses on the Shires surveillance list with majority scheduled for routine inspections in the later part of the calendar year.
Caravan Parks & Camp Grounds Act administration – The Shire has 13 licensed caravan and camping facilities licensed and has participated in the first round of submissions to the Caravan and Camping Ground legislation review.As a result of the submissions a second round of consultation has been announced which closes on 30 November 2015.
Public buildings – There are 75 permanent public buildings in the shire. A focus on inspections of high risk public buildings is schedule later in the calendar year with this year focusing on event approvals involving temporary public buildings including outdoor concerts and festivals.
On-site wastewater treatment & disposal – includes involvement in all unsewered areas to ensure proper sewage management, assessing applications, providing advice and responding to poorly maintained systems. There were 12 approvals issued for onsite waste water systems during the year.
Aquatic facilities – 14 approvals have been issued by WA Department of Health – the Shires main responsibility is conducting monthly sampling and testing of swimming pool and spray park water quality. There were 8 failed sample results and 4 aquatic facility closures recorded during the year related to water quality standards. A number of operators have expressed interest in attending training provided by a registered training provider in 2016.
Lodging houses – There are 20 lodging houses in the Shire. A focus on inspecting high risk premises is scheduled for later in the calendar year.
Mosquito management program activity – includes: mosquito breeding and disease surveillance; sentinel chicken program (early warning surveillance e.g. for Murray Valley Encephalitis); prevention programs; control/treatment programs; media and public awareness campaigns; and extensive funding available which signifies a high level of priority Statewide, despite there being no legislative requirements.
EXECUTIVE MANAGER, DEVELOPMENT SERVICES REPORT
Mark Chadwick
ENVIRONMENTAL HEALTH SERVICES
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The Shire’s Environmental Health Service was successful in gaining access to funding from the Department of Health for subsidised chemicals used in the above treatment programs, equipment for the treatment of mosquitoes and staff training.
Recycled Water Scheme Compliance Management and Monitoring – The shires staff conducted monthly routine sampling of ponds and treated effluent and potentially managing compliance of the Shire’s storage ponds.
Recreational Water Safety (environmental waters) – The Shires staff conducted routine monitoring of natural water bodies from a recreational safety point of view and potentially other aspects of recreational water safety (e.g. public beach events).
Fascine Development Precinct Waterways Monitoring Program – The Shire’s staff conducted routine monitoring and sampling of Fascine waterways to test for ecological health. The Shire’s Health sectionhas continued to sample and monitor local waterways to ensure compliance with required health standards. The Fascine and Small Boat Harbour is regularly monitored so that these recreational waters are maintained an acceptable biological standard for recreational purposes, including swimming.
Licensed facilities monitoring and compliance management is
conducted for: Carnarvon Waste Disposal Site Coral Bay Waste Disposal Site Carnarvon Water Storage Ponds
Disaster management –Shire staff were involved in the planning, preparation, response and recovery of disaster situations, including the recent Tropical Cyclone Olwyn. Staff also attended a Disaster Management Preparation course conducted in June by the Department of Health WA and hosted by the City of Greater Geraldton.
Disease investigation – The Shire staff conducted several investigations relating to food poisoning and mosquito borne virus transmissions, working with the Department of Health where required.
Health related complaints – There were 38 recorded health complaints investigated during the year, with main issue being mishandled asbestos or sanitation related.
The Planning Section within the Development Services Division is responsible for guiding the Shire by the planning of residential development areas, commercial centre, tourist development, rural land use activities, recreational areas and other land uses. This is achieved through administration of the Shire’s two Town Planning Schemes, assessment of development, rezoning, and subdivision application referral to the WAPC, consideration of applications under the Mining Act along with formulating policies and strategies for sustainable development and conservation. The Section is also responsible for ensuring compliance with land use and development controls and is involved in a variety of land administration processes including road closures and State land matters. Strategic and Policy Outcomes and other Planning Initiatives for 2014/15 The Shire has in place a number of Strategic Plans to guide the development of the Shire. Strategic Planning across the Shire over the past 12 months has seen a number of formal planning initiatives and documents being progressed paving the way for future development opportunities. A number of Scheme Amendments to change the zoning of land, along with structure plans to set the outline of development have been considered through 2014/15. In particular, omnibus Amendment No. 68 to the Shire of Carnarvon Town Planning Scheme No. 10 Carnarvon Townsite & Environs (TPS 10) was important as it addressed 32 identified anomalies and inconsistencies
PLANNING AND DEVELOPMENT
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and allowed for better alignment with WA State Policies and sought to avoid land use conflicts in the future. It is pleasing to advise that progress has been made this year with the following being undertaken:
Coral Bay Planning – In February 2012 and in response to mounting pressure on Coral Bay as a premier tourist node, the Shire initiated a planning review of the Coral Bay based on a vision for the next 25 years. Throughout 2013/14 and with the assistance of consultants that included CSIRO, The outcome was a draft Coral Bay Settlement Structure Plan (CBSSP) was prepared that identifies and recommends changes to accommodate future tourist and development pressures without seeking to cause detriment to the Ningaloo coastal environs. Following community consultation (from 21 August 2013 to 14 October 2013), Council adopted a final CBSSP on 17 December 2013 and referred it to the Western Australian Planning Commission (WAPC) for endorsement. The WAPC sought some minor modifications to the CBSSP and these were endorsed by Council on 29 April 2014. However, on 13 June 2014, the Premier announced that the State Government will examine existing and future Western Australian coastal settlements to allow more West Australians and access to the coast.
Known as the ‘Coastal Towns and Settlements Cabinet Subcommittee’ (CTSCS), it would investigate the development and revitalisation of priority coastal settlements and examine future coastal sites, particularly on the south coast of Western Australia. On 9 April 2015, State Cabinet endorsed the CBSSP with the Minister for Planning John Day noting that the CBSPP provided a 25-year planning framework for future development and expansion of tourism within Coral Bay. Mr Day said: "To help Coral Bay remain the premier tourist area on the Ningaloo coast we have approved an increase in the visitor population cap from 4,500 to 5,300 people. This increase will create the opportunity for a new camping and caravan park on Banksia Drive and for strata titled short stay accommodation on Lot 308. Permanent residential development will not be allowed, however the workers' accommodation precinct on Lot 308 will remain for people who need to reside in Coral Bay as a result of their business or employment."
Extract of Approved CBSSP
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The CTSCS is still to report its findings.
East Carnarvon/Kingsford Planning – In early 2013, Council resolved to review the East Carnarvon –Kingsford Subdivision Guide Plan (ECKSGP) that had originally accompanied the adoption of Town Planning Scheme No. 10 in 1988. The review seeks to identify the opportunity for infill development and land-use change in consideration of conflicts of land-use, adequate utilities and servicing, flood risk and protection of prime agricultural land. In April 2015 Council resolved to advertise the District Structure Plan (ECKDSP) for community and agency consultation. It is anticipated that the draft ECKDSP will referred to Council for final consideration in July 2015.
Babbage/Whitlock Island Planning – In March 2013 Land Insights was appointed as the lead consultant by the Shire to prepare a Structure Plan for Babbage & Whitlock Islands (‘Structure Plan’). Local Planning Strategy – The Shire is required to prepare a Local Planning Strategy (LPS) with the purpose of providing an effective medium to longer term planning framework which guides future townsite development, infrastructure delivery and consideration of community facilities. An LPS also sets out the planning principles, rationale and strategies for implementation across all areas of land use planning.
The purpose of the Structure Plan is to identify a range of precincts that will guide land use and development across the islands over time.
To achieve the vision and intended character the following precincts are proposed including:
Low Density Residential;
Tourist and Independent Housing;
Foreshore Reserve/Low Key Recreation Nodes;
Camping Area;
Conservation/Tramway; and
Golf Course.
The draft Structure Plan was advertised for community consultation in August 2014 and referred to Council for final consideration in October 2014.
The Western Australian Planning Commission (WAPC) endorsed the Structure Plan in December 2015. The Shire is pursuing with State agencies means to progress changes to reserves and establish environmental approvals.
Extract of Approved Structure Plan
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In May 2014, URBIS planning consultants were appointed to assist the Shire in the preparation of the draft LPS with the intent to set out the key aspirations of stakeholders, accommodating the future needs of the community, creating opportunities to enhance and protect local attributes while facilitating the achievement of long term local and regional objectives and goals. The Strategy, among other matters, further intends to guide the preparation of a new local planning scheme for the Shire – to ultimately replace existing Town Planning Schemes 10 and 11. The LPS will also provide a framework for investment by both the public and private sector. The consultant has carried out stages One and Two of the project (of four total Stages as) which includes Analysis, Preparation & Background and Preparation of the draft LPS. Through Stage One, the project team completed a literature review of relevant state and local policies and legislation, carried out site inspections, and engaged members of the community in group and one-on-one stakeholder consultations. Several meetings were co-ordinated with Government Departments and Agencies to ensure the Strategy was based on the most reliable needs and requirements for the community. Preparation of the draft LPS to this stage has involved one-on-one consultation by URBIS with community members, organisations, and agencies at the local and state level. Further community-wide consultation will occur as the formal consultation process begins. In this regard in June 2015, Council resolved to adopt the draft LPS for the purposes of advertising for public comment and requesting consent from the WAPC to undertake formal community consultation. It is anticipated that the final LPS will be considered by Council in mid 2016.
Town Planning Scheme Review – Land use and development within the Shire is regulated by Town Planning Scheme No.10 – Carnarvon Town site and Environs and District Zoning Scheme No. 11 that covers the balance of the district, including Coral Bay. Both Schemes are scheduled for review under the Planning and Development Act, 2005, the Town Planning Regulations 1967 and the WAPC's Local Planning Manual (2010). The Planning Section is in the process of a formal review culminating in the preparation of draft Local Planning Scheme No.13, as well as preparing the LPS to guide future land use change. Draft Local Planning Scheme No.13 will comprise the Scheme Text, a Scheme Map(s), and any Local Planning Policies associated with the implementation of Scheme provisions (where required). Statutory Planning The 2014/15 financial year has seen continued processing of Development (Planning) Applications and providing advice to the WAPC on subdivision/strata applications. Additionally, the State Government has continued to introduce a number of reforms to the planning system in Western Australia which is anticipated to culminate in the new Planning and Development (Local Planning Schemes) Regulation expected to be promulgated in August 2015. The following provides some insight on statutory planning considerations over recent years:
Application Type 2012/13 2013/14 2014/15
Planning/Development Applications 86 77 44
Subdivision Referrals 10 7 4
Scheme Amendments 6 4 3
Development Control Unit During 2013/14 financial year a Development Control Unit (DCU) was established and facilitated by the “Land Use Planning & Development” section of the organisation. The purpose of the DCU is to ensure Planning, Health, Building and Infrastructure meet on a regular basis to determine applications and discuss issues collectively, which will ensure a united approach and response by the Shire to the public.
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In partnership with the Shire of Shark Bay and the Shire of Upper Gascoyne, the Shire of Carnarvon hosts the position of Community Emergency Services Manager held by Mr Mike Barnes. The position is part funded by the Department of Fire and Emergency Services and has a role that includes implementing and supervising the delivery preparedness, prevention, response and recovery of Emergency Services functions across the Shire’s of Carnarvon, Shark Bay and Upper Gascoyne. Local Emergency Management Committee (LEMC) The LEMC committee consists of representatives from various agencies and community groups, such as FESA, Police Service, Department of Child Protection, Health Services, Ambulance Volunteers, Lions Club and the Shire Council. In January 2015, the responsibility for LEMC within the Shire was transferred from Corporate and Community Services to Development Services. Over the past financial year LEMC meetings were held in the form of:
one airport exercise; and
one incident (being “TC Olwyn”); and
one desk top exercise. Shire and Bushfire Brigades Primary and Support Incidents reported to DFES and attended by the Shire and Bushfire Brigades in the financial year 2014/15 were:
Unit Primary Supported
Coral Bay VES 1 1
Gascoyne River BFB 6 17
Shire of Carnarvon 4 0
Total 11 18
Tropical Cyclone Olwyn On Friday March 13, 2015 Carnarvon and Shark Bay was impacted by Tropical Cyclone Olwyn which began as a tropical low in an active monsoon trough approximately 900 kilometres north of Exmouth during 8 March. The tropical low slowly strengthened and was named Tropical Cyclone Olwyn or TC Olwyn at 2pm 11 March. During the week before the Cyclone, the Shire was undertaking flood protection works associated with the Gascoyne River along with works at the lower levels along the Fascine, as a significant storm surge and potential flooding was predicted. Contingency to sand bag for a storm surge event was established and communications with plantations, caravan park owners etc along with the use of ‘Facebook’ was established.
The Local Emergency Management Committee met in the morning of 12 March at the Shire offices where the advice was provided that Cyclone Olwyn was likely to be a Category 2 with a wind intensity and storm surge water levels likely to be 1m above high tide. The predicted date of landfall for Cyclone Olwyn was still over Exmouth on Friday 13 March but brought forward to between 5am-8am.
EMERGENCY SERVICES
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TC Olwyn intensified while tracking towards the south-southwest and reached Category 2 intensity at 11pm Wednesday 11 March. At around 5pm on 12 March, the Bureau of Meteorology predictive movement of Cyclone Olwyn was revised and Red alert for Carnarvon was set for 7am Friday 13 March where high intensity winds were forecast. The system accelerated as it approached Exmouth during 12 March and strengthened to Category 3 intensity at 5pm Thursday 12 March when it was located about 155 kilometres north northeast of Exmouth. At 5am Friday 13 March the Shire and other volunteers were sandbagging Robinson Street in anticipation of flooding an storm surge. The category 3 system passed just to the west of Coral Bay around 6am 13 March and passed about 25 kilometres to the West of Carnarvon around 2pm. Carnarvon Airport recorded storm force winds (destructive winds) and a maximum wind gust of 146 kilometres per hour at 1:25pm with a storm surge of about 0.7 metres at Carnarvon. Commercial damage at the airport from TC Olwyn
Immediately after the Cyclone, the Shire waives all tip fees and approval fees associated with damage from the Cylcone. Waste pickup and delivery to the Tip since Cyclone Olwyn is over 4440 trips and comprises: Greenwaste 2485 Asbestos 187 Plastic 133 General 493 Mixed 629 Metal 240 Putrescibles 74 Builders 108 Sewerage 15 Skip Bins 67 Car Bodies 10 Total 4441
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Fortunately, the expected flooding and storm surge from Cyclone Olwyn did not eventuate, however extensive damage was caused by the very strong winds. The day after Cyclone Olwyn Shire officers head to Coral Bay to inspect and assess the damage. Coral Bay suffers damage in the caravan parks, workers accommodation areas and tourist units. The SES were organised for Coral Bay and undertook a very effective and well received clean-up of buildings, structures and trees. Coral Bay was ‘closed’ for about 4 days and is declared ‘open for business’ on 6am Wednesday 15 April.
For Carnarvon, over 300 buildings were inspected by the Shire, with over 50 buildings either requiring substantial repairs or demolition. The impacts of the Cyclone continue to be felt as that the Shire will be undertaking re-inspection of over 100 buildings. For the first four days after the Cyclone, staff and contactors removed significant debris, water, trees and fallen powerlines/poles (in conjunction with Horizon Power) from the Shire’s roads. All of the Shire’s rural roads were inspected
within a week of the Cyclone. All rural roads were impacted by the Cyclone the majority of which require substantial rebuilding. The Shire continues to work through Main Roads WA and WANDRRA funding for the reconstruction of these roads. A significant community services role was and still is being undertaken by the Shire as a result of the Cyclone. The Shire’s Development Services Directorate is responsible for the economic development and tourism portfolio that includes the Carnarvon Visitor Centre. In addition, after an organisational restructure in January 2015, the Civic Centre was placed under the care and control of Development Services. Visitor Centre – The Carnarvon Visitor Centre Carnarvon Visitor Centre (CVC) has continued to provide excellence in all areas of service, promotion and the facilitation of tourism to visitors to the Carnarvon region. These services are aimed to assist the local tourism industry and the CVC business by better enabling the promotion of the Carnarvon region: • Provision of accommodation, tour and event booking service This allows the CVC to convert visitor’s intentions into behaviour encouraging them to experience more and stay longer within the town and region where possible.
Caravan & Camping Show (CCS) Representatives of the CVC attended the annual CCS to assist in the promotion of the town and the region.
Perth Royal Agricultural Show The Shire provided staffing for the Perth Royal Agricultural Show and a direct financial contribution of $2,500 to assist the GDC, local tourist industry and other local governments to promote Carnarvon and the wider Gascoyne region to the Perth community.
Carnarvon and Coral Bay Holiday Planner This is the leading tourism document that promotes Carnarvon and Coral Bay and includes information on attractions, accommodation options, eating out, events and local services and shops available in Carnarvon and the surrounding area. The Planner is extensively used by visitors and contains new and updated information and photos, an updated town map (to scale) and also a map of the coastal area.
ECONOMIC DEVELOPMENT, ENTERTAINMENT AND TOURISM REPORT
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Carnarvon Visitor Centre Website The CVC launched a new look website in 2014 which is consistent with the Carnarvon branding. The new site allows for easier navigation and increased ability for CVC to updated listed information and allows visitors to make online accommodation and tour bookings. Importantly, in early 2015 the Website was modified to include an interpretation option for six different languages: Chinese, Dutch, French, German, Italian and Japanese.
Carnarvon Town Map Pads The CVC in association with the Tourism Alliance Committee has updated the double sided, tear off A2 sized map. This map is used by operators and CVC staff to assist visitor orientation around Carnarvon and the region and identifies ‘things to do’, which in turn encourages visitors to stay in the town longer and increase their spending.
Tourism Touchscreen The Touchscreen allows for 24 hour access to local information via through-glass touchpad technology to visitors who arrive after hours. The CVC sponsors 6 pages on the machine and uses these pages to promote Carnarvon and its membership base via listings of members on pages for accommodation, eating out/retail & services, local attractions and regional attractions along with a promotional video of the town and Visitor Centre details.
GWN 7 Top Tourism Awards The CVC entered the GWN 7 Top Tourism Awards to nominate Carnarvon for Top Tourism Town for population over 5,000. This provides an opportunity to showcase the services the town provides as well as an evaluation for improvements in the Tourism industry. The WA Tourism Conference (Visitor Centre Stream) is attended by the Visitor Centre Coordinator where the Top Tourism award categories are announced. Carnarvon Civic Centre comprising the Woolshed and Camel Lane Theatre The Carnarvon Civic Centre is located on the corner of Robinson Street and Camel Lane, Carnarvon and comprises two venues:
The Camel Lane Theatre: A proscenium arch theatre and digital surround sound cinema, with tiered seating for 300.
The Wool Shed: A multipurpose hall with a maximum capacity of 350. During the 2014/2015 financial year, the Carnarvon Civic Centre has been dedicated to developing and supporting the wider community by presenting a broad and culturally diverse range of live theatre, bands and movies. The centre is committed to providing an environment and space for opportunity. The aim is to provide the local and visiting community with entertaining, cost effective options of entertainment that is designed to engage all age groups from toddlers and school aged children through to seniors. Attendances throughout the year have increased by more than 1500 on previous years with 4 sold out shows throughout the year. Many live shows have had workshops attached to them giving opportunity to our schools and disadvantaged children the chance to experience the arts. . Live Shows have included:” Nearly Neil” (direct from America) “Official Blues Brothers” (American) along with 2 Helpmann Award Winning Shows “Pete the Sheep” and “ 360 Allstars” of which all 4 shows sold out.
During the 2014/2015 financial year, the purchase of more equipment has enabled us to transform our Wool Shed venue into a multipurpose function centre and has hosted this year: weddings, funerals, large conferences, Youth discos, Science Expos ,Vietnamese Moon Festival, dance and fitness classes and school graduations to name a few. The Liz Newton School of Dance has engaged the Woolshed as a permanent hire with the venue hired Monday to Friday afternoons.
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The Wool Shed also operates as an emergency shelter and undertook that function during Tropical Cyclone Olwyn where over 100 people sought shelter in the building. It was clear that The Woolshed has number of deficiencies as an emergency shelter that are being addressed by the Shire. These include the need for air-conditioning and an independent mobile electrical supply for when the power goes out during an event. The Camel Lane Theatre doubles as a movie theatre on the weekends. Friday night movies have been replaced and the introduction of an “Adults Only Wednesday” Night is proving fruitful with attendance increasing each week. Economic Tourism Development Action Plan’ (‘Action Plan’) In December 2015, the Council resolved to undertake an Action Plan for the Shire of Carnarvon. The purpose of developing the Action Plan is to find means where the Shire and the private sector can drive and build economic development in the Shire for the next five (5) year period, with specific emphasis on tourism. The Action Plan will provide a framework to consider tourism and economic development initiatives to enable tourist enterprises to build and thrive and to allow businesses not directly associated with tourism to leverage from tourism development within the Shire of Carnarvon. The Action Plan will inform and define an approach to economic development for the Shire and other partners/stakeholders with specific emphasis on tourism. Council also established a ‘Working’ Group’ comprising Councillors and individual industry representatives with the following purpose: “The Economic and Tourism Development Action Plan Working Group (‘Working Group’) has been formed to provide advice to the Shire on the preparation of a draft Action Plan as directed in the following terms of reference. The primary function of the Working Group is to:
Afford guidance to the Project Consultant and ensure progress of the Action Plan aligns with the project brief;
Offer a diverse range of views and perspectives on behalf of representative organizations or groups;
Provide input or assistance where requested by the Project Consultant; and
Offer direction to the Shire in making recommendations to Council.” In February 2015, the Shire appointed Flame Events as the consultant to carry out the Action Plan and the process of undertaking extensive consultation and preparation of the Action Plan continues Draft Blowholes Reserves Management Plan for the Blowholes Reserves (DBRMP) – An important strategic tourist and economic plan for the Shire is the preparation of the DBRMP for the Blowholes Reserves. The purpose of the BRMP is to establish a framework for the layout, standard of development, implementation of works and ongoing governance regime to regulate use and activity as the Council moves forward with enhancement of the Blowholes in consideration of public access and environmental management. For some 30 years Council has been engaged in dealings over the unauthorised erection of what were considered to be ‘squatter’s shacks’ at the Blowholes camping/recreational area resulting in a long term protracted level of concern over non-compliance in relation to building and health legislation. Notwithstanding, numerous attempts to address and resolve these matters of concern, including the preparation of the Blowholes Master Plan 2008 the Council in December 2012 received correspondence from the Minister for Lands detailing a way forward for the progression of the Blowholes Reserve through the preparation of a new Reserve Management Plan. The Minister’s letter, together with a draft Blowholes Project Brief was presented to Council on the 26th February 2013.
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In line with the Minister’s direction and in accepting the Project Brief the Council called for submissions and subsequently appointed consultants Edge Planning to prepare the Reserves Management Plan. As part of the preparation the Council also established a working group that involved key stakeholders from the Blowhole Protection Association (BPA) and conducted a number of meetings with Shack owners with a view to instil a collaborative approach. The DBRMP was presented to Council and subsequently endorsed at its ordinary meeting on 27 May 2014 for consent to advertise. It is reasonable to suggest that although the BPA had ongoing involvement in the preparation of the DBRMP, there was limited support and trust expressed by the BPA in the Shire’s approach to the DBRMP. The DBRMP was put out for a six week public advertising period which closed on the 6th August 2014. The advertising was deliberately extensive with all interested and affected parties invited to submit comments. In total 217 submissions were received. The DBRMP was referred to a Special Meeting of Council in September 2014 where it adopted and subsequently referred to the Minister for Lands for approval. The Minister is still to determine the final BRMP. Shire of Carnarvon Demographic & Economic Profile – In an attempt to assist the development industry and the community as a whole, the Shire prepared an economic and demographic profile that addresses the population, commercial ‘drivers’ and growth potential for the whole Shire. The economic and demographic profile is available on the Shire’s Website: http://www.carnarvon.wa.gov.au/wp-content/uploads/2014/08/Carnarvon-profile-Aug-2014.pdf The Shire’s Building Services Section has continued to perform in the monitoring of all building activities within the Shire. The functions of the Building Services Section has continued to include:
Process and issue of Building Permits
Inspection of buildings
Project Management
Enforcement of non-compliant and unauthorised building works
Maintenance of all Shire Buildings* * Note: Responsibility for maintenance of all Shire Buildings was transferred to the Shire’s Infrastructure Services in January 2015.
Building Staff: The Building Services Section benefited from Mr Ron Ashenden, a certified Building Surveyor with over 30 years of expertise as a builder and working in Local Government. Building Construction Applications Summary 2014/2015: The number of building applications received in 2014/15 is generally consistent with recent years although application numbers did increase after Tropical Cyclone Olwyn in a response to rebuilding of houses and in particular, fences. During the 2014/2015 financial year there where in total 163 Building Permits approved, this is inclusive of the 113 fence applications received for cyclone damage from approximately April 2015 to 30 June 2015.
BUILDING SERVICES
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The remaining 50 permits had an estimated value of $4,701, 848. The Building Section is continuing to receive many applications due to cyclone damage, the larger part being for fences.
Shire of Carnarvon Ranger Services incorporates a dedicated team of Rangers who are passionate about providing quality Community Service within a legislative framework working to achieve positive outcomes. Introducing the 2016 team; Ranger Coordinator Carmen TAYLOR 18 years WA Police Service experience inclusive of remote aboriginal community liaison 3 years City of Wanneroo Ranger 4.5 years Project Manager Mining resource sector OHS/WHS Safety consultant and trainer Ranger Luke DeSOUSA Raised in Carnarvon - sound local knowledge Ranger 2+ years Mining Resource experience Volunteer Bush Fire Brigade Ranger Mark FORBES Raised in Carnarvon – sound local knowledge New to Ranger Services but has displayed a passion for Community Service and dedication to his work. Business and Mining Resource experience
42
17
16
3
2 0 1 2 / 2 0 1 3 2 0 1 3 / 2 0 1 4 2 0 1 4 / 2 0 1 5
PERMITS APPROVED
RANGER SERVICES
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Ranger Colin WALKER – Coral Bay Resident of Coral Bay 12 years Ranger duties 5 years Local businessman Volunteer Bush Fire Brigade Ranger Duties:
Community Patrol
Attending to Complaints
Parking
Animal Control
Off Road Vehicle Control
Abandon Vehicles
Illegal Camping
Illegal Dumping
Fire Control Officer
Investigation and Evidence Collection
Issue of warnings, Infringements and Prosecution
Community Education
Community Events
Ranger Services priority is to educate the wider Community on legislative requirements in order to achieve voluntary compliance without prosecution. Community education and events will be conducted throughout 2016 including various school, youth group and aboriginal community attendance to educate and promote Ranger Services. Review of dog exercise areas, safe off road vehicle use, bush fire prevention strategies, signage and maintaining cleared verges will be some of the targeted areas. Promotion of Shire of Carnarvon as the most pet friendly North West Shire and the Blowholes has commenced pre peak tourist season to have maximum impact in 2016.
Nearly 600 children attended the Aquatic Centre during the two week October holiday period.
Inclusion WA held a Pool Party on Monday 6th October as part of their school holiday program.
WA Country Health Services launched the Carnarvon Physiotherapy Aqua Aerobics sessions on Wednesday 15th, 42 community members participated in these twice weekly sessions for the month.
The Carnarvon Amateur Swim Club hosted the inaugural Swimming WA endorsed Gascoyne Open Swimming Championships on the 13th December.
YMCA Swim School and several local sporting clubs and groups held their Christmas Party’s / Trophy Presentation days at the Centre this year.
AQUATIC CENTRE
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All Schools in Carnarvon utilised the Centre with End of Year Reward days for good behaviour and St Mary’s Star of the Sea Catholic School provided year 7-8 transition students a fun day with a BBQ lunch on the last day of Transition Week.
Swimmers from Carnarvon Amateur Swim Club travelled to Perth to compete in the Swimming WA Rookie Meet & the Sun Smart Country Championships and Exmouth to participate in Exmouth Country Pennants.
Remote Schools Attendance Strategy initiative offered incentives for children to attend school and reduce truancy.
Clean up following Cyclone Olwyn.
RECREATIONAL SWIMMING ATTENDANCES
Mark Chadwick EXECUTIVE MANAGER, DEVELOPMENT SERVICES
13/14 Actual 14/15 Actual Variance
Jul 0 0 0
Aug 0 0 0
Sept 0 258 196
Oct 1249 2,059 810
Nov 1776 3249 1473
Dec 2362 3241 879
Jan 3608 5456 1848
Feb 1873 4410 2537
Mar 1503 1929 426
Apr 893 1637 744
May 0 0 0
Jun 0 0 0
TOTAL 13264 22177
0
1000
2000
3000
4000
5000
6000
To
tal P
art
icip
ati
on
2014/2015 Carnarvon Aquatic CentreRecreation Swimming Participation
13/14 Actual
14/15 Actual
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INFRASTRUCTURE
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Infrastructure Services carries responsibility for the following areas of Council business:
Roads & Works Department
Parks & Gardens Department; Maintenance, construction and irrigation of Shire sporting fields, passive parkland areas, road verges, streetscapes, street trees, cemeteries and water ways maintenance.
Depot Workshop; Servicing and maintaining Shire plant and equipment and fleet vehicles
Fascine Management; Maintenance of tramway bridge, 3 newly installed jetty structures with attached pontoons, individual floating pontoon, boat ramp and dredging works
Airport; maintenance of all airport infrastructure including runways, aprons, taxi ways, grass runoff areas, security, buildings, grounds and car parks.
Budget preparation and management
Compliance with Occupational Health and Safety policies and procedures, governed by legislation
Asset management
Tender & Contract preparation and administration
Compliance with appropriate legislation associated with provided services
Council Policy drafting and revising
Council Agenda Item preparation
Strategic Planning
Purchasing and procurement
Road and Footpath programs
Roads to Recovery (R2R) funding management
Regional Roads Group (RRG) funding management
Funding applications
Crossover applications
Private Works projects
Fleet Management
Management of the training and education of Infrastructure staff, in OHS, plant operation and First Aid /CPR to promote safety and productivity in the workforce.
EXECUTIVE MANAGER, INFRASTRUCTURE SERVICES REPORT
Mike Hudson
OPERATIONS
STRATEGIC/ADMINISTRATION
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FASCINE UPGRADE COMPLETION Following the construction of the fascine wall during 2013/2014, the completion works commenced in March 2015 in three stages. Stage 1: Concrete was poured for the lower walkway with stairs & ramps leading up to the newly constructed jetty structures situated opposite Johnston Street and Pioneer Park, with articulated ramps leading down to floating pontoons, secured to the fascine wall using custom designed dualdockers. Lighting was fitted into the limestone hob wall along the road side and water side of its entire length. Turf was laid in July and safety railing on the jetty structures followed, along with the installation of seating, fitness equipment and a drink fountain/dog water supply all of which were crafted of timber from the One Mile Jetty and the Prawning Jetty. Stage 1 was opened to the public in August with the shade shelter, including table, seating and barbeque installed soon after at the second jetty structure opposite Pioneer Park.
Stage 2: Subsurface irrigation and turf was laid from the second jetty structure opposite Pioneer Park down to the existing T-Jetty and the stairs upgraded to a compliant standard with railing. Artificial turf was installed along the lower walkway. Reclined seats and round ottoman seats were built from jetty timber and installed at intervals on the lower walkway.
MAJOR PROJECTS 2015/2016
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Stage 3: The third stage encompassed the area from the southern side of the existing T-Jetty to the end of the fascine wall at Baxter Park. This included the provision of a concrete lower walkway and shade shelter including barbeque facilities. A third jetty structure was added with ramp and pontoon and the Brown Street Carpark was re designed and constructed on the corner of Brown Street and Olivia Terrace. The shade shelter was erected using the same jetty timber as Stage 1 & 2. Fitness equipment, seating, drink fountain/dog water supply and a shower were installed. This stage was completed and opened to the public as of mid-December 2015.
ROBINSON STREET REVITALISATION Following the laying of grass in the Robinson Street CBD median in December 2014, the next stage of revitalisation included the provision of decked boardwalks which commenced in July 2015. Recycled plastic decking boards were selected due to their durability, resistance to fading, insect attack and low maintenance requirements. Mini boardwalks were also constructed in front of Eagle Boys, and Northbound News for pedestrian crossings. The garden beds in the main street received a makeover, planted out with colour and low maintenance native plants and black mulch, and once construction of the roundabouts was completed, these were also planted out. The next and final stage of the revitalisation is the installation of Public Artworks in the form of mural, sculptures or furniture which represent Carnarvon, its people and history.
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Public submissions have been requested, once these works are created and installed in the Main Street precinct the existing electricity cable’s will provide lighting to display the artwork. ROADS & WORKS Road Projects
Quobba-Gnarloo Road – 20km Reconstructed and re-sheeted;
Carnarvon Mullewa Road reseal length of 7km;
Mahoney Avenue, reseal length of road, Space and Technology Museum driveway and below OTC dish;
Robinson Street – Construction of concrete road pavement around 3 roundabouts. Concrete was reinforced with steel fibre, and finished with reinforced kerbing. This design and construction has proven effective, sustaining no further damage from traffic;
Robinson Street & CBD – Removal of Speed Bumps from Robinson Street, Egan Street, Francis Street and Camel Lane;
Removal of bollards for increased parking in front of ANZ, and removal of wheels stops to reduce trip hazards for the public;
Footpaths & Kerbing
Construction of James Street Footpath connecting the airport to CBD;
Construction of new footpath on Radley Street, providing wheelchair access to Carnarvon Christian School from Brockman;
Reinstate damaged footpath on Robinson Street between Boundary Road and KCD Fuel Supplies;
Repairs and realignment of kerbing in the central median strip on Robinson Street, to increase road safety for traffic entering and exiting the new Police and Justice Complex;
Various footpath and kerb reinstatements on town streets; Drainage
Excavation and repair to stormwater pipes caused by breakages that resulted in sinkholes and damage to surrounding infrastructure;
Drain cleaning program prior to rain events;
Works completed on gully grates in CBD to raise them to road height for improved traffic safety;
Electrical upgrade to stormwater pump in East Carnarvon;
Open drain cut between William Street and Chinaman’s Pool to reduce recurrent flooding in area; Waste
Improved Waste facility compliance;
Updated Fire Evacuation Management Plan;
Increased staff training for plant operation and practices;
Excavation of a new cell for improved scrap metal storage, with the emphasis on cyclone preparedness;
Streamlined drumMuster chemical container storage and collection process; Fire Prevention
Firebreak Action Plan drafted;
Consultation with Department of Fire & Emergency Services for areas of priority and ease of access in case of emergency ;
Access roads cleared, and gates checked
INFRASTRUCTURE MAINTENANCE
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Extensive firebreaks cut using Shire grader, loader and contractors in town and pastoral areas Around the Shire
Ongoing patching, edging, grid and general road maintenance;
Commenced construction of the McNish Street levy behind the airport to reduce storm water reaching James St during flood conditions;
Shoulders and table drains graded on Carnarvon-Mullewa Road and shoulders graded on Blowholes Road;
Sheridan’s Gully Fusible Levy reinstated following the 2015 river;
Removal of Woolshed’s damaged interior ceiling after collapse in July 2015. New trusses were installed for internal lighting upgrade and interior electrical replacement;
Reinstatement of culverts on Bushbay Road;
Repairs and resealing of Civic Centre carpark after burst water main;
Two minor roads closed during nesting period of Dawson’s Burrowing Bee, unique to the Gascoyne area;
Production of comprehensive grading programme for local and country roads;
Two sections of Bibbawarra Road were raised to reduce over topping from water ponding;
Regular sand removal from Pelican Point Road; PARKS & GARDENS Festival Grounds
Annual Assessment of turf condition on Premier Oval;
Application of liquid gypsum, soil conditioner and top dressing;
Partial Kikuyu turf replacement in preparation for a WAFL match ;
Commenced intensive Management programme, including switching to fresh water only;
Baston Oval cricket pitch resurfaced;
Cricket nets and practice pitch upgraded; Town Oval
Repairs to cricket pitch;
Installation of shade shelter;
Oval preparation prior for Fairs, Circus, events etc. and repairs to reticulation and turf post event; Integrated Water Supply
Improved management practices of water treatment to enhance water quality;
Adjustment of treated waste water irrigation schedule times in response to requests by the public; Robinson Street Revitalisation
Ongoing maintenance of Robinson Street turf and reticulation;
Redevelopment of garden beds with agapanthus, callistemon grevillea and black mulch;
Upgrade of the three CBD roundabouts with native plants, ground groundcovers and feature roses in central roundabout;
Around the Shire
Overhaul of fertilising practices and programme across all Shire grounds;
Revitalisation of Remembrance Garden at the Cenotaph ;
Performed Safety Audit of all playground equipment;
Extensive pruning of tamarisk trees on Banksia Drive, Coral Bay;
Received handover of newly landscaped Fascine garden beds & lawn;
Upgraded irrigation at Town Beach;
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Preparation of Town Beach for Australia Day and Tropicool events;
Ongoing maintenance (mowing, brush cutting, weed spraying) of town verges, parks, reserves;
Green waste clean-up following TC Olwyn;
Daily litter collection throughout CBD, suburbs and the Carnarvon-Mullewa Road rest stops;
Cleaning of park facilities, public toilets and Shire buildings was taken on by Shire staff, and completed 6 days a week to a high standard;
Repairs to Softfall rubber at town beach playground; AIRPORT INFRASTRUCTURE Council is responsible for the maintenance and effective management of the Carnarvon Airport including compliance with regulations and legislation. A commercial operator (Skippers) is engaged to provide the day to day operations of the airport, however the Shire is the responsible authority for airport management with respect to the Civil Aviation Safety Authority’s requirements. The runways are nearing the end of their service life with failing subgrades (foundations) and Council is working towards renovations of the main runway to meet with CASA compliance requirements. Airport staff are continuing to maintain the current runway/s to compliance standards until the renovations are completed. Services provided by the Shire to maintain compliance of the airport include:
Maintenance of runways, taxiways and aprons;
Maintenance of aircraft parking ;
Maintenance of grass and surrounding areas to runways;
Fencing maintenance;
Garden and building maintenance
Maintenance of the carpark and lighting;
Michael Hudson EXECUTIVE MANAGER INFRASTRUCTURE SERVICES
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STATUTORY REPORTS
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As part of the Integrated Planning framework which was introduced by the State Government in July 2012, the Shire of Carnarvon adopted its Strategic Community Plan in November 2011 following extensive consultation with the community to provide for the visions and aspirations for the Shire’s future direction. The Plan provides the objectives and strategies for the key themes, including: Economic Environment Social Cultural Civic Leadership A copy of the Strategic Community Plan 2011-2021 is available on the Shire’s website at www.carnarvon.wa.gov.au. Commentary across the respective directorate reports contained in this document identifies the projects from the Strategic Community Plan and Corporate Business Plan, and respective progress of each. A modified reporting structure for both documents coupled with other plans that form the Shire’s Integrated Planning Framework, including the Asset Management Plan and Workforce Plan will be provided in the 2015/2016 Annual Report.
Section 29(2) of the Disability Services Act requires local governments to report about the implementation of the plan. A review of the Shire of Carnarvon’s Disability Access & Inclusion Plan (previously Disability Services Plan) required by Part 5 of the Disability Services Act was carried out in 2012. In particular, the following areas were identified as priorities and have been progressed with appropriate strategies:
Robinson St/Town Beach upgrade has introduced seamless pavement throughout the precinct area to enhance access for people with mobility disability;
Pathways – maintenance of existing, to include off ramps, consult with users to determine priority areas;
Camel Lane Theatre – improve access for people with mobility disability;
Pelican point universal fishing platform repaired and made safe;
Pelican Point platform and access to beach;
Public toilets – need to be universal access;
Development of You’re Welcome website promoting local business, facilities which are accessible;
STRATEGIC COMMUNITY PLAN
DISABILITY ACCESS & INCLUSION PLAN
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In accordance with the State Records Act 2000, the Shire of Carnarvon and all its employees are legally obliged to comply with the Shire’s Record Keeping Plan. This Plan had been endorsed by the State Records Office of Western Australia in 2010. A review of the plan was carried out in 2014 and a copy is with the State Records Office for endorsement.
The Public Interest Disclosure Code was established by the Commissioner for Public Sector Standards under Section 20 of the Public Interest Disclosure Act. One of the principles of the Code is not just to provide protection to those who make disclosures (and those who are the subject of disclosures) but also to encourage a system of transparency and accountability in the way government officials act and utilise public monies. Matters that fall into the category of public interest include:
Improper conduct (irregular or unauthorised use of public resources);
An offence under State Law including corruption (substantial unauthorised or irregular use of, or substantial mismanagement of, public monies)
Administration matters generally (conduct involving a substantial risk of injury to public health, prejudice to public safety or harm to the environment)
Matters that relate to the Shire of Carnarvon should be referred to the Shire of Carnarvon’s Public Interest Disclosure Officer. Disclosures to the Public Interest Disclosure Officer can be made not just about officers of the Shire of Carnarvon but also about its elected officials. There is an obligation of the Public Interest Disclosure Officer in the Public Interest Disclosure Act to ensure that the disclosure is confidential and that the person making a disclosure is provided adequate protection from reprisals, civil and criminal liability or breach of confidentiality. The Shire of Carnarvon had no Public Interest Disclosures during the reporting period.
Section 96 of the Freedom of Information Act requires local governments to publish an Information Statement. In summary, the Shire of Carnarvon’s Statement indicates that the Shire of Carnarvon is responsible for the good governance of the Shire and carries out functions as required including statutory compliance and provision of services and facilities. All Council meetings are open to the public and meeting dates and venues are advertised on a regular basis. Members of the public are invited to ask questions during Public Question Time shortly after the commencement of each meeting.
RECORDKEEPING PLAN
PUBLIC INTEREST DISCLOSURE
FREEDOM OF INFORMATION
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The Shire of Carnarvon maintains records relating to the function and administration of the Shire, each property within the Shire and includes such documents as the Minutes of Meetings, Rate Book, Town Planning Scheme, Local Laws, Codes of Conduct, Register of Financial Interests, Register of Delegated Authority, Financial Statements and Electoral Rolls. These documents can be inspected free of charge at the Shire Office, 3 F r a n c i s Street, Carnarvon during office hours. Wherever possible and practical and in line with privacy laws, the Shire of Carnarvon makes personal information readily available free of charge. There was one (1) Freedom of Information request made during the reporting period. The Competition Principals Agreement is an Inter-government Agreement between the Commonwealth and State/Territory Governments that sets out how government will apply National Competition Policy principles to public sector organisations within their jurisdiction. The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition Principles Agreement require Local Government to report annually as to the implementation, application and effects of the Competition Policy. The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting, they are: Competitive Neutrality Structural Review of Public Monopolies; and Legislative Review In accordance with the requirements of the National Competition Policy the Shire of Carnarvon makes the following disclosure for 2014/15. Competitive Neutrality The objective of competitive neutrality is the elimination of resource allocation distortions arising out of local government ownership of significant business activities. The Shire of Carnarvon does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise. Legislative Review Parties to the National Competition Policy agreed that legislation should not restrict competition unless the:
· Benefits of the restriction to the community as a whole outweigh the costs; and · Objectives of the legislation can only be achieved by restricting competition.
Accordingly, the Shire of Carnarvon is required to implement a systematic review of all its existing legislation to determine whether there are any direct or indirect effects on competition.
NATIONAL COMPETITION POLICY STATEMENT
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In relation to a Legislative Review the Shire of Carnarvon discloses that: At the reporting date the below Local Laws are currently under review –
Shire of Carnarvon Parking and Parking Facilities Local Law 2014 – To update and improve upon parking and the use of vehicles under the Local Laws Relating to Local Government Act Local Laws which were Gazetted on 26 February 1998;
Shire of Carnarvon Repeal Local Law 2014 – To repeal Bye-Laws/Local Laws that are considered to be superfluous, defunct and obsolete.
Shire of Carnarvon Dogs Local Law 2014 – To extend the controls over dogs which exist under the Dog Act 1976.
Shire of Carnarvon ‘Keeping and Control of Cats Local Law 2014 – To extend the controls over cats which exist under the Cat Act 2011.
Shire of Carnarvon Local Government Property and Public Places Local Law 2014 – To control the use of local government property. Some activities are permitted only under a permit or under a determination and some activities are restricted or prohibited.
The new local laws seek to establish the most up to date governance regime and ensures the Shire is responding to relevant changes in the legislative environment. Legislative Review and Reform State Legislative changes impacts the strategic and operational activities of the Shire and has on occasion created variation in the long term financial planning and current year’s budgetary requirements. The Shire’s awareness of legislative requirements allows for continual execution of professional and legal probity. State Acts affected in the 2014-2015 reporting year, listed in alphabetical order, include:
Community Protection Amendment Regulations 2013;
Criminal Code Amendment 2014 and Criminal Code Act Compilation Act 1913;
Disability Services Amendment Act 2014;
Dog Act Amendments 1976;
Education and Care Services National Regulations;
Environmental Protection Amendment Act;
Ports Legislation Amendment Act;
Security and Related Activities (Control) Amendment Regulations (No. 2);
The Cat Act 2011;
Waste Avoidance and Resource Recovery Amendment (Validation) Bill 2014;
Western Australian Photo Card Act 2014;
Wildlife Conservation Act 1950; and
Workforce Reform Act 2014.
Section 5.121 of the Local Government Act requires the complaints officer for each local government to maintain a register of complaints which records all complaints that result in action under section 5.110(6) (b) or (c) of the Act. Section 5.53 (2) (hb) of the Local Government Act requires that details of entries made under section 5.121 during the financial year in the register of complaints, including: (i) the number of complaints recorded on the register of complaints; (ii) how the recorded complaints were dealt with; There were nil complaints for the 2014/2015 reporting year.
REGISTER OF MINOR COMPLAINTS
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Council adopted its Corporate Business Plan in September 2013 and provides for the projects that are aligned with the objectives and strategies of the Community Strategic Plan for the next four years. This is also a requirement of the Integrated Planning Reporting Framework. The Corporate Business Plan provides for the delivery of community services and has been aligned to each objective of the Strategic Community Plan
We have developed our ten year Strategic Community Plan and our four year Corporate Plan which outlines our hopes and aspirations for our community. Our Workforce Plan, as part of the Western Australian Local Government’s integrated planning framework, helps to ensure the Shire has the right people in the right place at the right time, to meet the needs of our community.
CORPORATE BUSINESS PLAN
WORKFORCE PLAN
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FINANCIAL REPORTS
FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
TABLE OF CONTENTS
Statement by Chief Executive Officer 2
Statement of Comprehensive Income by Nature or Type 3
Statement of Comprehensive Income by Program 4
Statement of Financial Position 5
Statement of Changes in Equity 6
Statement of Cash Flows 7
Rate Setting Statement 8
Notes to and Forming Part of the Financial Report 9
Independent Auditor's Report 61
Supplementary Ratio Information 63
Principal place of business:3 Francis Street
Carnarvon WA 6701
SHIRE OF CARNARVON
SHIRE OF CARNARVON
STATEMENT OF COMPREHENSIVE INCOME
BY NATURE OR TYPE
FOR THE YEAR ENDED 30TH JUNE 2015
NOTE 2015 2015 2014
$ Budget $
$
Revenue
Rates 22 4,320,948 4,240,803 4,060,259Operating grants, subsidies and
contributions 28 9,910,094 10,330,534 11,822,872
Fees and charges 27 2,980,770 2,961,760 3,444,598
Interest earnings 2(a) 319,139 254,000 708,582
Other revenue 1,724,862 483,860 299,357
19,255,813 18,270,957 20,335,668
Expenses
Employee costs (6,305,458) (6,230,564) (4,964,328)
Materials and contracts (9,428,679) (12,413,756) (38,994,664)Utility charges (704,465) (870,866) (735,829)
Depreciation on non-current assets 2(a) (6,355,354) (5,709,669) (5,724,817)
Interest expenses 2(a) (62,684) (64,162) (56,660)
Insurance expenses (387,513) (424,075) (331,911)
Other expenditure (354,552) (404,162) (331,142)
(23,598,705) (26,117,254) (51,139,351)
(4,342,892) (7,846,297) (30,803,683)
Non-operating grants, subsidies and
contributions 28 4,730,148 652,876 5,258,067Loss on revaluation of fixed assets 2(a) (7,422,287) 0 (21,432)
Profit on asset disposals 20 570,135 1,200,820 319,174
Loss on asset disposals 20 (79,350) (229,278) (22,154)
Net result (6,544,246) (6,221,878) (25,270,028)
Other comprehensive income
Changes on revaluation of non-current assets 12 295,340,719 0 13,900,741
Total other comprehensive income 295,340,719 0 13,900,741
Total comprehensive income 288,796,473 (6,221,878) (11,369,287)
This statement is to be read in conjunction with the accompanying notes.
Page 3
SHIRE OF CARNARVON
STATEMENT OF COMPREHENSIVE INCOME
BY PROGRAM
FOR THE YEAR ENDED 30TH JUNE 2015
NOTE 2015 2015 2014$ Budget $
$Revenue 2(a)Governance 473,247 31,100 41,038General purpose funding 11,830,296 9,177,595 6,820,164Law, order, public safety 966,486 212,383 176,232Health 133,643 149,300 78,078Education and welfare 560,609 289,000 346,579Housing 81,515 104,560 57,395Community amenities 1,618,372 2,064,057 1,821,281Recreation and culture 325,332 421,726 297,726Transport 2,058,849 3,249,714 9,625,460Economic services 619,100 633,500 960,572Other property and services 588,364 1,938,022 111,143
19,255,813 18,270,957 20,335,668
Expenses 2(a)Governance (1,519,590) (1,171,413) (1,388,128)General purpose funding (165,437) (264,736) (215,028)Law, order, public safety (1,696,202) (865,370) (772,602)Health (600,318) (614,140) (536,129)Education and welfare (997,896) (758,017) (806,114)Housing (178,636) (154,934) (129,112)Community amenities (2,430,826) (2,874,941) (2,457,275)Recreation and culture (4,376,808) (4,879,032) (4,258,916)Transport (10,281,997) (13,135,754) (39,175,749)Economic services (1,272,775) (1,289,298) (1,302,652)Other property and services (15,536) (45,457) (40,986)
(23,536,021) (26,053,092) (51,082,691)
Finance costs 2(a)Housing (4,280) (4,310) (4,809)
Recreation and culture (37,469) (38,057) (34,464)Transport (20,935) (21,795) (17,387)
(62,684) (64,162) (56,660)
Non-operating grants, subsidies and contributions
Recreation and culture 2,200,000 0 2,983,095Transport 652,876 652,876 2,274,972Other property and services 1,877,272 0 0
28 4,730,148 652,876 5,258,067
Loss on revaluation of fixed assets 2(a)fair value through profit or lossTransport (7,422,287) 0 (21,432)
(7,422,287) 0 (21,432)
Profit/(Loss) on disposal of assets
Governance 0 0 (5,246)Law, order, public safety 0 (6,283) 0
Housing 0 0 319,174
Community amenities 0 (12,109) 0Transport (79,350) (210,886) (16,908)
Other property and services 570,135 1,200,821 020 490,785 971,543 297,020
Net result (6,544,246) (6,221,878) (25,270,028)
Other comprehensive income
Changes on revaluation of non-current assets 12 295,340,719 0 13,900,741
Total other comprehensive income 295,340,719 0 13,900,741
Total comprehensive income 288,796,473 (6,221,878) (11,369,287)
This statement is to be read in conjunction with the accompanying notes.
Page 4
SHIRE OF CARNARVON
STATEMENT OF FINANCIAL POSITION
AS AT 30TH JUNE 2015
NOTE 2015 2014
$ $
CURRENT ASSETS
Cash and cash equivalents 3 14,947,141 14,559,252
Trade and other receivables 4 1,187,509 1,321,211
Inventories 5 95,863 80,788
TOTAL CURRENT ASSETS 16,230,513 15,961,251
NON-CURRENT ASSETS
Other receivables 4 56,250 50,490
Property, plant and equipment 6 31,707,066 32,275,739
Infrastructure 7 375,684,650 89,968,132
TOTAL NON-CURRENT ASSETS 407,447,966 122,294,361
TOTAL ASSETS 423,678,479 138,255,612
CURRENT LIABILITIES
Trade and other payables 8 3,123,110 5,931,165
Current portion of long term borrowings 9 475,433 487,181
Provisions 10 747,806 862,454
TOTAL CURRENT LIABILITIES 4,346,349 7,280,800
NON-CURRENT LIABILITIES
Long term borrowings 9 649,790 1,125,223
Provisions 10 87,412 51,133
TOTAL NON-CURRENT LIABILITIES 737,202 1,176,356
TOTAL LIABILITIES 5,083,551 8,457,156
NET ASSETS 418,594,928 129,798,455
EQUITY
Retained surplus 82,553,807 85,909,486
Reserves - cash backed 11 9,310,464 12,499,031
Revaluation surplus 12 326,730,657 31,389,938TOTAL EQUITY 418,594,928 129,798,455
This statement is to be read in conjunction with the accompanying notes.
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SHIRE OF CARNARVON
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH JUNE 2015
RESERVES
RETAINED CASH REVALUATION TOTAL
NOTE SURPLUS BACKED SURPLUS EQUITY
$ $ $ $
Balance as at 1 July 2013 91,003,834 32,674,711 17,489,197 141,167,742
Comprehensive income
Net result (25,270,028) 0 0 (25,270,028)
Changes on revaluation of non-current assets 12 0 0 13,900,741 13,900,741
Total comprehensive income (25,270,028) 0 13,900,741 (11,369,287)
Transfers from/(to) reserves 20,175,680 (20,175,680) 0 0
Balance as at 30 June 2014 85,909,486 12,499,031 31,389,938 129,798,455
Comprehensive income
Net result (6,544,246) 0 0 (6,544,246)
Changes on revaluation of non-current assets 12 0 0 295,340,719 295,340,719
Total comprehensive income (6,544,246) 0 295,340,719 288,796,473
Transfers from/(to) reserves 3,188,567 (3,188,567) 0 0
Balance as at 30 June 2015 82,553,807 9,310,464 326,730,657 418,594,928
This statement is to be read in conjunction with the accompanying notes.
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SHIRE OF CARNARVON
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30TH JUNE 2015
NOTE 2015 2015 2014
$ Budget $
CASH FLOWS FROM OPERATING ACTIVITIES $
Receipts
Rates 4,273,334 4,220,803 4,043,820
Operating grants, subsidies and contributions 10,131,451 9,544,534 12,710,186
Fees and charges 2,980,770 2,961,760 3,444,598
Interest earnings 319,139 254,000 708,582
Goods and services tax 617,564 0 5,769,984
Other revenue 1,724,862 483,860 193,821
20,047,120 17,464,957 26,870,991
Payments
Employee costs (6,350,087) (6,385,564) (4,710,375)
Materials and contracts (12,283,995) (12,306,133) (43,678,199)Utility charges (704,465) (870,866) (735,829)
Interest expenses (64,239) (64,162) (54,858)
Insurance expenses (387,513) (424,075) (331,911)
Goods and services tax (663,365) 0 (8,275,993)
Other expenditure (354,552) (404,162) (331,142)
(20,808,216) (20,454,962) (58,118,307)
Net cash provided by (used in)
operating activities 13(b) (761,096) (2,990,005) (31,247,316)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of
property, plant & equipment (834,666) (7,152,873) (1,678,158)
Payments for construction of
infrastructure (2,911,762) (3,068,327) (5,321,453)
Non-operating grants,
Subsidies and contributions 4,730,148 652,876 5,258,067
Proceeds from sale of fixed assets 652,446 1,803,000 449,662Net cash provided by (used in)
investment activities 1,636,166 (7,765,324) (1,291,882)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of debentures (487,181) (487,184) (285,554)
Proceeds from new debentures 0 0 1,435,000
Net cash provided by (used In)
financing activities (487,181) (487,184) 1,149,446
Net increase (decrease) in cash held 387,889 (11,242,513) (31,389,752)
Cash at beginning of year 14,559,252 14,559,167 45,949,004
Cash and cash equivalents at the end of the year 13(a) 14,947,141 3,316,654 14,559,252
This statement is to be read in conjunction with the accompanying notes.
Page 7
SHIRE OF CARNARVON
RATE SETTING STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2015 2014NOTE Actual Budget Actual
$ $ $RevenueGovernance 473,247 31,100 41,038General purpose funding 7,689,401 5,116,792 3,032,036Law, order, public safety 966,486 206,100 176,232Health 133,643 149,300 78,078Education and welfare 560,609 289,000 346,579Housing 81,515 104,560 376,569Community amenities 1,618,372 2,051,948 1,821,281Recreation and culture 2,525,332 421,726 3,280,821Transport 2,711,725 3,691,704 11,900,432Economic services 619,100 633,500 960,572Other property and services 3,035,771 3,138,843 111,143
20,415,201 15,834,573 22,124,781ExpensesGovernance (1,519,590) (1,171,413) (1,393,374)General purpose funding (165,437) (264,736) (215,028)Law, order, public safety (1,696,202) (865,370) (772,602)Health (600,318) (614,140) (536,129)Education and welfare (997,896) (758,017) (806,114)Housing (182,916) (159,244) (133,921)Community amenities (2,430,826) (2,874,941) (2,457,275)Recreation and culture (4,414,277) (4,917,089) (4,293,380)Transport (17,804,569) (13,157,549) (39,231,476)Economic services (1,272,775) (1,289,298) (1,302,652)Other property and services (15,536) (45,457) (40,986)
(31,100,342) (26,117,254) (51,182,937)
Net result excluding rates (10,685,141) (10,282,681) (29,058,156)
Adjustments for cash budget requirements:Non-cash expenditure and revenue
Movement in prepaid income (included in restricted cash) (2,200,000) 0 3,600,000(Profit)/Loss on asset disposals 20 (490,785) (971,542) (297,020)Movement in deferred pensioner rates (non-current) (5,760) 0 8,778Movement in employee benefit provisions (non-current) (78,369) 0 152,737Loss on Revaluation of Non-Current Assets 7,422,287 0 21,432Depreciation and amortisation on assets 2(a) 6,355,354 5,709,669 5,724,817Capital Expenditure and RevenuePurchase of land and buildings 6(b) (577,834) (7,073,873) (865,103)Purchase furniture and equipment 6(b) (24,647) (29,000) (11,645)Purchase plant and equipment 6(b) (232,185) (50,000) (801,410)Purchase roads 7(b) (926,197) (1,322,805) (1,612,405)Purchase footpaths 7(b) (19,342) (60,000) (91,980)Purchase drainage 7(b) 0 (75,000) (101,756)
Purchase parks & ovals 7(b) (1,830,829) (162,000) (2,921,479)
Purchase levee system 7(b) (14,329) 0 0
Purchase airport 7(b) (109,730) (648,522) (225,303)
Purchase other infrastructure and landfill 7(b) (11,335) (800,000) (368,530)Proceeds from disposal of fixed assets 20 652,446 1,803,000 449,662Repayment of debentures 21(a) (487,181) (487,184) (285,554)Proceeds from new debentures 21(a) 0 0 1,435,000Proceeds from self supporting loans 0 0 0Transfers to reserves (restricted assets) 11 (3,677,880) (1,652,797) (11,506,875)Transfers from reserves (restricted assets) 11 6,866,447 11,028,436 31,682,555
Surplus/(deficit) July 1 b/fwd 22(b) 1,131,054 1,013,496 2,415,161Surplus/(deficit) June 30 c/fwd 22(b) 5,196,939 0 1,131,054
Total amount raised from general rate 22(a) (4,140,895) (4,060,803) (3,788,128)
This statement is to be read in conjunction with the accompanying notes.
Page 8
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report comprises general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit
entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material
accounting policies which have been adopted in the preparation of this financial report are presented
below and have been consistently applied unless stated otherwise.
Except for cash flow and rate setting information, the report has been prepared on the accrual basis
and is based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and liabilities.
Critical accounting estimates
The preparation of a financial report in conformity with Australian Accounting Standards requires
management to make judgements, estimates and assumptions that effect the application of policies and
reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances; the results of which form the basis of making
the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The local government reporting entity
All Funds through which the Shire controls resources to carry on its functions have been included in the
financial statements forming part of this financial report.
In the process of reporting on the local government as a single unit, all transactions and balances
between those Funds (for example, loans and transfers between Funds) have been eliminated.
All monies held in the Trust Fund are excluded from the financial statements. A separate statement of
those monies appears at Note 19 to these financial statements.
(b) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables
in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating
cash flows.
(c) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with
banks and other short term highly liquid investments 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 reported as short term borrowings in current liabilities in the statement of financial
position.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 9
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Trade and Other Receivables
Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges
and other amounts due from third parties for goods sold and services performed in the ordinary course
of business.
Receivables expected to be collected within 12 months of the end of the reporting period are classified
as current assets. All other receivables are classified as non-current assets.
Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be
uncollectible are written off when identified. An allowance for doubtful debts is raised when there is
objective evidence that they will not be collectible.
(e) Inventories
General
Inventories are measured at the lower of cost and net realisable value.
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.
Land held for sale
Land held for development and sale is valued at the lower of cost and net realisable value. Cost includes
the cost of acquisition, development, borrowing costs and holding costs until completion of development.
Finance costs and holding charges incurred after development is completed are expensed.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if
significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.
Land held for sale is classified as current except where it is held as non-current based on the Council’sintentions to release for sale.
(f) Fixed Assets
Each class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost
or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Mandatory requirement to revalue non-current assets
Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and
the measurement of non-current assets at Fair Value became mandatory.
The amendments allow for a phasing in of fair value in relation to fixed assets over three years as follows:
(a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local government
that are plant and equipment; and
(b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local government -
(i) that are plant and equipment; and
(ii) that are -
(I) land and buildings; or-
(II) Infrastructure;
and
(c) for a financial year ending on or after 30 June 2015, the fair value of all of the assets of the local
government.
Thereafter, in accordance with the regulations, each asset class must be revalued at least every 3 years.
In 2013, the Shire commenced the process of adopting Fair Value in accordance with the Regulations.
Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been
made in the financial report as necessary.
FOR THE YEAR ENDED 30TH JUNE 2015
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 10
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Land under control
In accordance with Local Government (Financial Management) Regulation 16(a), the Shire was required
to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course,
showground, racecourse or other sporting or recreational facility of State or Regional significance.
Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were
then classified as Land and revalued along with other land in accordance with the other policies detailed
in this Note.
Initial recognition and measurement between mandatory revaluation dates
All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory
measurement framework detailed above.
In relation to this initial measurement, cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal
consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets
constructed by the Shire includes the cost of all materials used in construction, direct labour on the project
and an appropriate proportion of variable and fixed overheads.
Individual assets acquired between initial recognition and the next revaluation of the asset class in
accordance with the mandatory measurement framework detailed above, are carried at cost less
accumulated depreciation as management believes this approximates fair value. They will be subject to
subsequent revaluation at the next anniversary date in accordance with the mandatory measurement
framework detailed above.
Revaluation
Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in
equity. Decreases that offset previous increases of the same asset are recognised against revaluation
surplus directly in equity. All other decreases are recognised in profit or loss.
Land under roads
In Western Australia, all land under roads is Crown Land, the responsibility for managing which, is
vested in the local government.
Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired
on or before 30 June 2008. This accords with the treatment available in Australian Accounting
Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management)
Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government
(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land
as an asset.
Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government
(Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local
Government (Financial Management) Regulations prevail.
Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the
Shire.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 11
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Depreciation
The depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated
on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful life of the improvements.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of
the revaluation is treated in one of the following ways:
a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying
amount of the asset after revaluation equals its revalued amount; or
b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.
Major depreciation periods used for each class of depreciable asset are:
Buildings 30 to 100 years
Furniture and Equipment 4 to 10 years
Plant and Equipment 5 to 15 years
Sealed roads and streets
formation not depreciated
pavement 50 years
seal
- bituminous seals 20 years
- asphalt surfaces 25 years
Gravel roads
formation not depreciated
pavement 50 years
gravel sheet 12 years
Formed roads (unsealed)
clearing and earthworks not depreciated
construction/roadbase 50 years
Footpaths - slab 40 years
Bridges 50 years
Levee System 50 years
Tools 5 years
Water supplying piping & drainage systems 75 years
Other Infrastructure Various
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
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.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the statement of comprehensive income in the period in which
they arise.
Capitalisation threshold
Expenditure on items of equipment under $5,000 is not capitalised. Rather, it is recorded on an
asset inventory listing.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities
When performing a revaluation, the Shire uses a mix of both independent and management valuations
using the following as a guide:
Fair Value is the price that the Shire would receive to sell the asset or would have to pay to transfer a
liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets that are not traded in an active
market are determined using one or more valuation techniques. These valuation techniques maximise, to
the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the
absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into
account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability
to use the asset in its highest and best use or to sell it to another market participant that would use the
asset in its highest and best use.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurement into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
Level 1Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Level 2Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data,
the asset or liability is included in Level 3.
Valuation techniques
The Shire selects a valuation technique that is appropriate in the circumstances and for which sufficient
data is available to measure fair value. The availability of sufficient and relevant data primarily depends on
the specific characteristics of the asset or liability being measured. The valuation techniques selected by
the Shire are consistent with one or more of the following valuation approaches:
Market approachValuation techniques that use prices and other relevant information generated by market transactions for
identical or similar assets or liabilities.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
SHIRE OF CARNARVON
Page 13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities (Continued)Valuation techniques (Continued)
Income approach
Valuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value.
Cost approach
Valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Shire gives priority to those techniques that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly
available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which
market data is not available and therefore are developed using the best information available about such
assumptions are considered unobservable.
As detailed above, the mandatory measurement framework imposed by the Local Government
(Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to
be revalued at least every 3 years.
(h) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Shire becomes a party to the
contractual provisions to the instrument. For financial assets, this is equivalent to the date that the
Shire commits itself to either the purchase or sale of the asset (i.e. trade date accounting is
adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the
instrument is classified 'at fair value through profit or loss', in which case transaction costs are
expensed to profit or loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value, amortised cost using the effective
interest rate method, or at cost.
Amortised cost is calculated as:
(a) the amount in which the financial asset or financial liability is measured at initial recognition;
(b) less principal repayments and any reduction for impairment; and
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount
initially recognised and the maturity amount calculated using the effective interest rate method.
The effective interest method is used to allocate interest income or interest expense over the relevant
period and is equivalent to the rate that discounts estimated future cash payments or receipts
(including fees, transaction costs and other premiums or discounts) through the expected life (or when
this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying
amount of the financial asset or financial liability. Revisions to expected future net cash flows will
necessitate an adjustment to the carrying value with a consequential recognition of an income or expense
in profit or loss.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 14
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Classification and subsequent measurement (continued)
(i) Financial assets at fair value through profit and loss
Financial assets are classified at “fair value through profit or loss” when they are held for trading for the
purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes
in carrying amount being included in profit or loss. Assets in this category are classified as current assets.
(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 and are subsequently measured at amortised cost. Gains or losses are
recognised in profit or loss.
Loans and receivables are included in current assets where they are expected to mature within 12 months
after the end of the reporting period.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or
determinable payments that the Shire has the positive intention and ability to hold to maturity. They
are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
Held-to-maturity investments are included in non-current assets, where they are expected to mature
within 12 months after the end of the reporting period. All other investments are classified as non-
current.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such
by management. They comprise investments in the equity of other entities where there is neither a
fixed maturity nor fixed or determinable payments.
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses)
recognised in other comprehensive income (except for impairment losses). When the financial asset
is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other
comprehensive income is reclassified into profit or loss.
Available-for-sale financial assets are included in current assets, where they are expected to be sold
within 12 months after the end of the reporting period. All other available-for-sale financial assets are
classified as non-current.
(v) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost. Gains or losses are recognised in profit or loss.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 15
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Impairment
A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as
a result of one or more events (a “loss event”) having occurred, which will have an impact on the estimated
future cash flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of
the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately.
Also, any cumulative decline in fair value previously recognised in other comprehensive income is
reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the
debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in
interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation;
and changes in arrears or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance
account is used to reduce the carrying amount of financial assets impaired by credit losses. After
having taken all possible measures of recovery, if management establishes that the carrying amount
cannot be recovered by any means, at that point the written-off amounts are charged to the allowance
account or the carrying amount of impaired financial assets is reduced directly if no impairment amount
was previously recognised in the allowance account.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the
asset is transferred to another party whereby the Shire no longer has any significant continual involvement in the risks and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired.
The difference between the carrying amount of the financial liability extinguished or transferred to
another party and the fair value of the consideration paid, including the transfer of non-cash assets or
liabilities assumed, is recognised in profit or loss.
(i) Impairment of Assets
In accordance with Australian Accounting Standards the Shire's assets, other than inventories,
are assessed at each reporting date to determine whether there is any indication they may be impaired.
Where such an indication exists, an impairment test is carried out on the asset by comparing the
recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in
use, to the asset's carrying amount.
Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in
profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard
(e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in
accordance with that other Standard.
For non-cash generating assets such as roads, drains, public buildings and the like, value in use is
represented by the depreciated replacement cost of the asset.
(j) Trade and Other Payables
Trade and other payables represent liabilities for goods and services provided to the Shire prior to the
end of the financial year that are unpaid and arise when the Shire becomes obliged to make future
payments in respect of the purchase of these goods and services. The amounts are unsecured, are
recognised as a current liability and are normally paid within 30 days of recognition.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 16
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Employee Benefits
Short-term employee benefits
Provision is made for the Shire’s obligations for short-term employee benefits. Short-term employee
benefits are benefits (other than termination benefits) that are expected to be settled wholly before
12 months after the end of the annual reporting period in which the employees render the related service,
including wages, salaries and sick leave. Short-term employee benefits are measured at the
(undiscounted) amounts expected to be paid when the obligation is settled.
The Shire’s obligations for short-term employee benefits such as wages, salaries and sick leave are
recognised as a part of current trade and other payables in the statement of financial position. The
Shire’s obligations for employees’ annual leave and long service leave entitlements are recognised as
provisions in the statement of financial position.
Other long-term employee benefitsProvision is made for employees’ long service leave and annual leave entitlements not expected to be
settled wholly within 12 months after the end of the annual reporting period in which the employees
render the related service. Other long-term employee benefits are measured at the present value of the
expected future payments to be made to employees. Expected future payments incorporate anticipated
future wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting period on government bonds that
have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in
assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the
periods in which the changes occur.
The Shire’s obligations for long-term employee benefits are presented as non-current provisions in its
statement of financial position, except where the Shire does not have an unconditional right to defer
settlement for at least 12 months after the end of the reporting period, in which case the obligations are
presented as current provisions.
(l) Borrowing Costs
Borrowing costs are recognised as an expense when incurred except where they are directly attributable
to the acquisition, construction or production of a qualifying asset. Where this is the case, they are
capitalised as part of the cost of the particular asset until such time as the asset is substantially ready
for its intended use or sale.
(m) Provisions
Provisions are recognised when the Shire has a present legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result and that outflow can
be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the
end of the reporting period.
(n) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the
asset, but not legal ownership, are transferred to the Shire, are classified as finance leases.
Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair
value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability
and the lease interest expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or
the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the
lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight line
basis over the life of the lease term.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 17
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(o) Investment in Associates
An associate is an entity over which the Shire has significant influence. Significant influence is the
power to participate in the financial operating policy decisions of that entity but is not control or joint
control of those policies. Investments in associates are accounted for in the financial statements by
applying the equity method of accounting, whereby the investment is initially recognised at cost and
adjusted thereafter for the post-acquisition change in the Shire’s share of net assets of the associate.
In addition, the Shire’s share of the profit or loss of the associate is included in the Shire’s profit or loss.
The carrying amount of the investment includes, where applicable, goodwill relating to the associate.
Any discount on acquisition, whereby the Shire’s share of the net fair value of the associate exceeds
the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.
Profits and losses resulting from transactions between the Shire and the associate are eliminated to
the extent of the Shire’s interest in the associate.
When the Shire’s share of losses in an associate equals or exceeds its interest in the associate, the
Shire discontinues recognising its share of further losses unless it has incurred legal or constructive
obligations or made payments on behalf of the associate. When the associate subsequently makes
profits, the Shire will resume recognising its share of those profits once its share of the profits equals
the share of the losses not recognised.
(p) Interests in Joint Arrangements
Joint arrangements represent the contractual sharing of control between parties in a business
venture where unanimous decisions about relevant activities are required.
Separate joint venture entities providing joint venturers with an interest to net assets are classified as a
joint venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity
method of accounting.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in
each asset and exposure to each liability of the arrangement. The Shire’s interests in the assets,
liabilities, revenue and expenses of joint operations are included in the respective line items of the financial
statements. Information about the joint ventures is set out in Note 16.
(q) Rates, Grants, Donations and Other Contributions
Rates, grants, donations and other contributions are recognised as revenues when the local government
obtains control over the assets comprising the contributions.
Control over assets acquired from rates is obtained at the commencement of the rating period or, where
earlier, upon receipt of the rates.
Where contributions recognised as revenues during the reporting period were obtained on the condition
that they be expended in a particular manner or used over a particular period, and those conditions were
undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged
conditions are disclosed in Note 2(c) . That note also discloses the amount of contributions recognised
as revenues in a previous reporting period which were obtained in respect of the local government's
operations for the current reporting period.
(r) Superannuation
The Shire contributes to a number of Superannuation Funds on behalf of employees. All funds towhich the Shire contributes are defined contribution plans.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(s) Current and Non-Current Classification
In the determination of whether an asset or liability is 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 Shire’s operational cycle. In the case
of liabilities where the Shire 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. Inventories held for trading are classified as current even if not expected to be
realised in the next 12 months except for land held for sale where it is held as non-current based on the
Shire’s intentions to release for sale.
(t) Rounding Off Figures
All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest
dollar.
(u) Comparative Figures
Where required, comparative figures have been adjusted to conform with changes in presentation for the
current financial year.
When the Shire applies an accounting policy retrospectively, makes a retrospective restatement or
reclassifies items in its financial statement, an additional (third) statement of financial position as at the
beginning of the preceding period in addition to the minimum comparative financial statements is
presented.
(v) Budget Comparative Figures
Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the
original budget estimate for the relevant item of disclosure.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
SHIRE OF CARNARVON
Page 19
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods
Management's assessment of the new and amended pronouncements that are relevant to the Shire, applicable to future reporting periods and which have not yet
been adopted are set out as follows:
Title Issued / Compiled Applicable (1)
Impact
(i) AASB 9 Financial Instruments December 2014 1 January 2018 Nil – The objective of this Standard is to improve and simplify the
(incorporating AASB 2014-7 and approach for classification and measurement of financial assets
AASB 2014-8) compared with the requirements of AASB 139. Given the nature of
the financial assets of the Shire, it is not anticipated the Standard
will have any material effect.
(ii) AASB 2010-7 Amendments September 2012 1 January 2018 Nil - The revisions embodied in this Standard give effect to the
to Australian Accounting consequential changes arising from the issuance of AASB 9 which is
Standards arising from AASB 9 not anticipated to have any material effect on the Shire (refer (i)
(December 2010) above).
[AASB 1, 3, 4, 5, 7, 101, 102,
108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 &
1038 and Interpretations 2, 5, 10, 12, 19 &
127]
(iii) AASB 15 Revenue from Contracts with December 2014 1 January 2017 This Standard establishes principles for entities to apply to report
Customers useful information to users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash flows arising
from a contract with a customer.
The effect of this Standard will depend upon the nature of future
transactions the Shire has with those third parties it has dealings
with. It may or may not be significant.
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods,
some of which are relevant to the Shire.
Page 20
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued / Compiled Applicable (1)
Impact
(iv) AASB 2013-9 Amendments to Australian December 2013 Refer title column Part C of this Standard makes consequential amendments to
Accounting Standards - Conceptual AASB 9 and numerous other Standards and amends the
Framework, Materiality and Financial permissions around certain applications relating to financial
Instruments liabilities reissued at fair value.
[Operative date: Part C Financial As the bulk of changes relate either to editorial or reference changes
Instruments - 1 January 2015] it is not expected to have a significant impact on the Shire.
(v) AASB 2014-3 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 11: Joint Arrangements to require the
Accounting Standards - Accounting for acquirer of an interest (both initial and additional) in a joint operationAcquisitions of Interests in Joint Operations in which the activity constitutes a business, as defined in AASB 3:
Business Combinations, to apply all of the principles on business
[AASB 1 & AASB 11] combinations accounting in AASB 3 and other Australian
Accounting Standards except for those principles that conflict with
the guidance in AASB 11; and disclose the information required
by AASB 3 and other Australian Accounting Standards for business
combinations.
Since adoption of this Standard would impact only acquisitions of
interests in joint operations on or after 1 January 2016,
management believes it is impracticable at this stage to provide a
reasonable estimate of such impact on the Shire's financial
statements.
(vi) AASB 2014-4 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 116 and AASB 138 to establish the
Accounting Standards - Clarification of principle for the basis of depreciation and amortisation as being the
Acceptable Methods of Depreciation and expected pattern of consumption of the future economic benefits of
Amortisation an asset. It also clarifies the use of revenue-based methods to
calculate the depreciation of an asset is not appropriate nor is
[AASB 116 & 138] revenue generally an appropriate basis for measuring the
consumption of the economic benefits embodied in an intangible
asset.
Given the Shire curently uses the expected pattern of consumption of
the future economic benefits of an asset as the basis of calculation
of depreciation, it is not expected to have a significant impact.Page 21
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued / Compiled Applicable (1)
Impact
(vii) AASB 2014-5 Amendments to Australian December 2014 1 January 2017 Consequential changes to various Standards arising from the
Accounting Standards arising from AASB 15 issuance of AASB 15.
It will require changes to reflect the impact of AASB 15.
(viii) AASB 2015-2 Amendments to Australian January 2015 1 January 2016 This Standard amends AASB 101 to provide clarification regarding
Accounting Standards – Disclosure the disclosure requirements in AASB 101. Specifically, the
Initiative: Amendments to Standard proposes narrow-focus amendments to address some of
AASB 101 the concerns expressed about existing presentation and disclosure
requirements and to ensure entities are able to use judgement
[AASB 7, 101, 134 & 1049] when applying a Standard in determining what information to
disclose in their financial statements.
This Standard also makes editorial and consequential amendments
as a result of amendments to the Standards listed in the title
column.
It is not anticipated it will have any significant impact on
disclosures.
(ix) AASB 2015-3 Amendments to Australian January 2015 1 July 2015 This Standard completes the withdrawal of references to AASB 1031Accounting Standards arising from the in all Australian Accounting Standards and Interpretations, allowing
withdrawal of AASB 1031 Materiality it to be completely withdrawn.
It is not anticipated it will have a significant impact as the principles
of materiality remain largely unchanged.
Page 22
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued / Compiled Applicable (1)
Impact
(x) AASB 2015-6 Amendments to Australian March 2015 1 July 2016 The objective of this Standard is to extend the scope of AASB 124Accounting Standards - Extending Related Related Party Disclosures to include not-for-profit sector entities.
Party Disclosures to Not-for-Profit Public
Sector Entities The Standard is expected to have a significant disclosure impact on
the financial report of the Shire as both Elected Members and Senior
[AASB 10, 124 & 1049] Management will be deemed to be Key Management Personnel
and resultant disclosures will be necessary.
Notes:(1) Applicable to reporting periods commencing on or after the given date.
(x) Adoption of New and Revised Accounting Standards
AASB 2011-7
AASB 2012-3
AASB 2013-3
AASB 2013-8
AASB 2013-9 Parts A & B
criteria of IFRSs or related to topics not relevant to operations.
and which were applicable to its operations.
or reporting practices or were either not applicable, largely editorial in nature, were revisions to help ensure consistency with presentation, recognition and measurement
During the current year, the Shire adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, became mandatory
These new and revised Standards were:
Most of the Standards adopted had a minimal effect on the accounting and reporting practices of the Shire as they did not have a significant impact on the accounting
Page 23
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2. REVENUE AND EXPENSES 2015 2014
$ $
(a) Net Result
The Net result includes:
(i) Charging as an expense:
Significant expense and revenueGeneral purpose funding 3,522,946 32,491,244
This significant expense in 2014 and 2015 relates to the
construction of levee banks for Flood Mitigation.
Auditors remuneration
- Audit of the annual financial report 20,869 24,900
- Assistance with the finalisation of the annual financial report 4,000 7,000
- Other services 19,140 5,600
Depreciation
Buildings 865,816 407,376
Furniture and Equipment 27,367 108,664
Plant and Equipment 348,495 240,724
Roads 3,930,913 3,901,438
Footpaths 50,679 49,191
Drainage 61,777 60,599
Parks & Ovals 543,582 451,539
Bridges 155,585 155,021
Levee System 30,617 30,617
Airport 111,324 101,218
Car Parks 44,250 75,832
Other Infrastructure and Landfill 184,949 142,5986,355,354 5,724,817
Interest expenses (finance costs)
Debentures (refer Note 21 (a)) 62,684 56,66062,684 56,660
Rental charges
- Operating leases 288,243 92,537288,243 92,537
(ii) Crediting as revenue:
Other revenue
Reimbursements and recoveries 1,433,954 105,536
Other 290,908 193,8211,724,862 299,357
2015 2015 2014
Actual Budget Actual
$ $ $
Interest earnings
- Reserve funds 204,362 100,000 532,743
- Other funds 49,774 100,000 121,168
Other interest revenue (refer note 26) 65,003 54,000 54,671319,139 254,000 708,582
The above amount includes one-off revenue ($1,206,490) relating to financial support
and insurance reimbursment for cyclone damage.
Page 24
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective
operational and financial objectives. These objectives have been established both on an overall
basis, reflected by the Shire’s Community Vision, and for each of its broad activities/programs.
COMMUNITY VISION
of the members of the community and enable them to enjoy a pleasant and healthy way of life.
Shire operations as disclosed in these financial statements encompass the following service
orientated activities/programs.
GOVERNANCE
Objective:
Activities:
GOVERNANCE
Objective:
Activities:
GOVERNANCE
Objective:
To provide a decision making process for the efficient allocation of resources.
Activities:
Administration and operations of facilities and services to members of Council.
Other costs that relate to the tasks of assisting elected members and ratepayers on
matters which do not concern specific council services.
GENERAL PURPOSE FUNDING
Objective:
Activities:
LAW, ORDER, PUBLIC SAFETY
Objective:
Activities:
In order to discharge its responsibilities to the community, the Shire has developed a set of
The Shire will endeavour to provide the community services and facilities to meet the needs
Administration and operations of facilities and services to members of Council.
To provide a decision making process for the efficient allocation of resources.
Administration and operations of facilities and services to members of Council.
Other costs that relate to the tasks of assisting elected members and ratepayers on
matters which do not concern specific council services.
To provide a decision making process for the efficient allocation of resources.
Other costs that relate to the tasks of assisting elected members and ratepayers on
matters which do not concern specific council services.
To provide services to help ensure safer community.
Supervision of various local laws, fire prevention, emergency services, CBD
security, administration of the Crime Prevention Plan.
To collect general reveunue to allow for the provision of services.
Rates activity, general purpose grants, banking costs and interest revenue.
Page 25
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective (Continued)
HEALTH
Objective:
Activities:
EDUCATION AND WELFARE
Objective:
Activities:
Support pre school facilities and assistance of seniors and retirement villages
This function also provides for Youth Strategy and the accounting of the Carnarvon
Youth Co ordinating Networks finance as part of an agreement.
HOUSING
Objective:
Activities:
COMMUNITY AMENITIES
Objective:
To provide land development strategies and to process land development activities.
Environmental sustainability.
Activities:
Refuse collection service, operation of refuse site, administration of town
planning scheme, cemetery service and maintenance, environmental protection
services and land development services.
RECREATION AND CULTURE
Objective:
To establish and manage efficiently infrastructure and resources which will
help the social well being of the community.
Activities:
Operations of Civic Centre (Camel Lane), aquatic centre and beach areas,
regional libray service, cultural and heritage services and facilities, reserves parks
and gardens.
TRANSPORT
Objective:
To provide effective and efficient transport services to the community.
Activities:
Maintenance of streets, roads, footpaths, street lighting, airport. Agency for
Department of Planning and Infrastructures On Line Vehicle Licensing Service.
To provide sanitary and essential services required by the community.
Food quality and pest control, inspections and infant health. This function also
To provide an operational framework for environmental and community health.
provides for the implentation of the Healthy Lifestyles model.
To meet the needs of the community in these areas.
To meet the needs of the Shire of Carnarvon Staff.
Staff Housing.
Page 26
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective (Continued)
ECONOMIC SERVICES
Objective:
To help promote and market the Shire of Carnarvon to the world and impove
the economic well being. To ensure building development regulations are adhered to.
Activities:
Noxious weed control, tourism and area promotion, building control and services.
OTHER PROPERTY AND SERVICES
Objective:
To ensure works programs are operating efficiently.
Activities:
Private works operations, public works operations and plant operations.
Page 27
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2. REVENUE AND EXPENSES (Continued)
(c) Conditions Over Grants/Contributions Opening Closing Closing
Balance(1)
Received(2)
Expended(3)
Balance(1)
Received(2)
Expended(3) Balance
Function/ 1/07/13 2013/14 2013/14 30/06/14 2014/15 2014/15 30/06/15
Grant/Contribution Activity $ $ $ $ $ $ $
Blowholes (Balance of $1,800,000) Recreation & Culture 1,156,113 47,111 (182,250) 1,020,974 2,062 (24,477) 998,559
Youth DCP & DCS Education & Welfare 118,712 5,015 (33,185) 90,542 66,168 (78,342) 78,368
Flood Mitigation (State) Transport 23,243,738 349,381 (19,159,172) 4,433,947 17,311 (3,522,946) 928,312
Flood Mitigation (Federal) Transport 5,257,860 8,341,849 (13,346,483) 253,226 516 0 253,742
Waste Facility (Regional CLGF) Community Amenities 386,117 7,961 (374,086) 19,992 0 (19,992) 0
Coral Bay Settlement Plan Community Amenities 75,310 2,404 (77,714) 0 0 0 0
Kidsport Community Amenities 13,871 28,650 (13,871) 28,650 50 (12,675) 16,025
Department of Local Government (Workforce) Administration 25,000 232 (25,232) 0 0 0 0
Department of Local Government (RCG) Administration 75,000 3,117 (24,397) 53,720 110 (15,647) 38,183
East Carnarvon & Kingsford Structure Plan Planning 60,000 1,270 (61,270) 0 0 0 0
Babbage & Whitlock Isn Structure Plan Planning 75,000 1,812 (44,302) 32,510 30 (31,634) 906
DLD Fascine "Final" Stage Recreation & Culture 0 3,302,001 0 3,302,001 70,644 (1,316,214) 2,056,431
Waste Services Community Amenities 0 19,128 0 19,128 531 0 19,659
Robinson Street Transport 0 500,000 0 500,000 11,444 (997) 510,447
Local Planning Strategy Community Amenities 0 150,000 0 150,000 220 (136,463) 13,757
CLAG (Mossies) Health 0 19,741 0 19,741 37 (10,392) 9,386
R2R Transport 0 237,080 0 237,080 5,952 (243,032) 0
Family Safe Community Amenities 0 15,414 0 15,414 21 (15,030) 405
Library Recreation & Culture 0 295,639 0 295,639 603 (74,292) 221,950
CLGF Executive Housing Housing 0 0 0 0 939,274 0 939,274
CLGF Civic Centre - Woolshed Refurbishment Recreation & Culture 0 0 0 0 939,273 939,273
Ageing in Place - GDC RFR Education & Welfare 0 0 0 0 50,000 0 50,000
Total 30,486,721 13,327,805 (33,341,962) 10,472,564 2,104,246 (5,502,133) 7,074,677
Notes:
(1) - Grants/contributions recognised as revenue in a previous reporting period which were not expended at the close of the previous reporting period.
(2) - New grants/contributions which were recognised as revenues during the reporting period and which had not yet been fully expended in the manner specified
by the contributor.
(3) - Grants/contributions which had been recognised as revenues in a previous reporting period or received in the current reporting period and which were
expended in the current reporting period in the manner specified by the contributor.
Page 28
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Note 2015 2014
$ $
3. CASH AND CASH EQUIVALENTS
Unrestricted 5,636,677 2,060,221
Restricted 9,310,464 12,499,03114,947,141 14,559,252
The following restrictions have been imposed by
regulations or other externally imposed requirements:
Leave reserve 11 131,417 126,394
Plant Reserve 11 125,619 120,818
Waste Disposal Reserve 11 37,513 36,080
Property Infrastructure Reserve 11 1,692 1,628
Staff Housing Reserve 11 694,189 662,958
Civic Centre Reserve 11 102,499 100,717
I.T. Replacement Reserve 11 51,416 64,481
Airport Reserve 11 30,074 28,223
Coral Bay Tip Reserve 11 21,617 20,790
Surge/Fascine Wall Reserve 11 6,195 5,958
Town Planning Scheme Reserve 11 22,957 22,080
Fascine Dredging Reserve 11 1,320 1,270
Flood Mitigation Reserve 11 10,405 10,008
OTC/NASA Reserve 11 7,828 7,530
Blowholes Reserve 11 21,282 20,469
Unspent Grants and Contributions Reserve 11 7,062,057 10,472,564
Land and Infrastructure Development Reserve 11 956,335 772,010
Asset Replacement Reserve 11 26,049 25,0539,310,464 12,499,031
Page 29
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014
$ $
4 TRADE AND OTHER RECEIVABLES
Current
Rates outstanding 362,118 320,264
Sundry debtors 627,465 602,562
GST receivable 150,225 104,424
ESL Receivable 31,465 25,712
Accrued Income 14,186 266,199
Bond Staff Housing 2,050 2,0501,187,509 1,321,211
Non-current
Rates outstanding - pensioners 56,250 50,49056,250 50,490
5. INVENTORIES
Current
Fuel and materials 51,259 48,342
Civic Centre 8,120 3,864
Visitors Centre 36,484 28,58295,863 80,788
Page 30
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014
$ $
6 (a). PROPERTY, PLANT AND EQUIPMENT
Land and buildings
Freehold land at:
- Independent valuation 2014 - level 2 3,510,000 3,510,000
- Independent valuation 2014 - level 3 3,147,375 3,166,050
- Additions after valuation - cost 254,151 0
6,911,526 6,676,050
Land vested in and under the control of Council at:
- Management Valuation 2014 - level 3 275,000 275,000
275,000 275,000
7,186,526 6,951,050
Non-specialised buildings at:
- Independent valuation 2014 - level 2 1,520,000 1,520,000
Less: accumulated depreciation (64,811) 0
1,455,189 1,520,000
Specialised Buildings at:
- Independent valuation 2014 - level 3 21,293,414 21,293,414
- Additions after valuation - cost 323,683 0
Less: accumulated depreciation (801,005) 0
20,816,092 21,293,414
22,271,281 22,813,414
Total land and buildings 29,457,807 29,764,464
Furniture and Equipment at:
- Independent valuation 2014 - level 3 75,800 75,800
- Management valuation 2014 - level 3 80,809 80,809
- Additions after valuation - cost 24,647 0
Less accumulated depreciation (27,367) 0
153,889 156,609
Plant and Equipment at:
- Management valuation 2013 - level 3 76,178 76,178
- Independent valuation 2013 - level 2 1,547,802 1,717,802
- Additions after valuation - cost 1,033,595 801,410
Less accumulated depreciation (562,205) (240,724)
2,095,370 2,354,666
31,707,066 32,275,739
The fair value of property, plant and equipment is determined at least every three years in accordance
with legislative requirements. Additions since the date of valuation are shown as cost, given they
were acquired at arms length and any accumulated depreciation reflects the usage of service
potential, it is considered the recorded written down value approximates fair value. At the end of each
intervening period the valuation is reviewed and where appropriate the fair value is updated toreflect current market conditions. This process is considered to be in accordance with Local
Government (Financial Management) Regulation 17A (2) which requires property, plant and
equipment to be shown at fair value.
Page 31
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
6. PROPERTY, PLANT AND EQUIPMENT (Continued)
(b) Movements in Carrying Amounts
Movement in the carrying amounts of each class of property, plant and equipment between the beginning and the end of the current financial year.
Balance Carrying
at the Revaluation Impairment Amount
Beginning Increments/ (Losses)/ Depreciation at the
of the Year Additions (Disposals) (Decrements) Reversals (Expense) End of Year
$ $ $ $ $ $ $
Freehold land 6,676,050 254,151 (18,675) 0 0 0 6,911,526
275,000 0 0 0 0 0 275,000
Total land 6,951,050 254,151 (18,675) 0 0 0 7,186,526
Non-specialised buildings 1,520,000 0 0 0 0 (64,811) 1,455,189
Specialised Buildings 21,293,414 323,683 0 0 0 (801,005) 20,816,092
Total buildings 22,813,414 323,683 0 0 0 (865,816) 22,271,281
Total land and buildings 29,764,464 577,834 (18,675) 0 0 (865,816) 29,457,807
Furniture and Equipment 156,609 24,647 0 0 0 (27,367) 153,889
Plant and Equipment 2,354,666 232,185 (142,986) 0 0 (348,495) 2,095,370
Total property, plant and equipment 32,275,739 834,666 (161,661) 0 0 (1,241,678) 31,707,066
Land vested in and under the control of
Council
Page 32
6. PROPERTY, PLANT AND EQUIPMENT (Continued)
(c) Fair Value Measurements
Fair Value
HierarchyValuation Technique Basis of valuation
Date of last
ValuationInputs used
Land and buildings
2
Market approach using recent observable market data for similar properties / income approach using discounted cashflow methodology
Independent Valuers June 2014 Price per hectare / market borrowing rate
3Improvements to land valued using cost approach using depreciated
replacement costManagement Valuation June 2014
Improvements to land using construction costs and current condition (Level 2), residual values and
remaining useful life assessments (Level 3) inputs
3Improvements to land valued using cost approach using depreciated
replacement costIndependent Valuers June 2014
Improvements to land using construction costs and current condition (Level 2), residual values and
remaining useful life assessments (Level 3) inputs
2
Market approach using recent observable market data for similar properties / income approach using discounted cashflow methodology
Independent Valuers June 2014Improvements to land using construction costs and
current condition (Level 2), residual values and remaining useful life assessments (Level 3) inputs
2 & 3Cost approach using depreciated
replacement costIndependent Valuers & Management Valuation
June 2014Construction costs and current condition (Level 2),
residual values and remaining useful life assessments (Level 3) inputs
2 & 3Market approach using recent
observable market data for similar properties
Independent Valuers & Management Valuation
June 2013 Price per item
Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied , they have the potential to result in a significantly higher or lower fair value measurement.
During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant and equipment using either level 2 or level 3 inputs.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Asset Class
Furniture and Equipment
Plant and Equipment
Freehold land
Land vested in and under the control of Council
Non-specialised buildings
Specialised Buildings
Page 33
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014$ $
7 (a). INFRASTRUCTURE
Roads - Management valuation 2011 - level 3 0 63,495,853 - Management valuation 2015 - level 3 315,173,553 0 - Cost 0 10,837,984Less accumulated depreciation 0 (30,575,986)
315,173,553 43,757,851
Footpaths - Management valuation 2015 - level 3 2,091,449 0 - Cost 0 2,534,089Less accumulated depreciation 0 (1,050,303)
2,091,449 1,483,786
Drainage
- Management valuation 2015 - level 3 6,779,666 0
- Cost 0 3,378,222
Less accumulated depreciation 0 (1,991,477)
6,779,666 1,386,745
Parks & Ovals
- Management valuation 2015 - level 3 14,661,054 0
- Cost 0 27,283,605
Less accumulated depreciation 0 (6,602,441)
14,661,054 20,681,164
Bridges
- Management valuation 2015 - level 3 7,980,000 0
- Cost 0 7,751,066
Less accumulated depreciation 0 (1,503,306)
7,980,000 6,247,760
Levee System
- Management valuation 2015 - level 3 8,950,000 0
- Cost 0 6,123,380
Less accumulated depreciation 0 (720,736)
8,950,000 5,402,644
Airport
- Management valuation 2015 - level 3 9,048,902 0
- Cost 0 8,826,996
Less accumulated depreciation 0 (6,684,448)
9,048,902 2,142,548
Car Parks
- Management valuation 2015 - level 3 458,026 0
- Cost 0 1,134,502
Less accumulated depreciation 0 (517,296)
458,026 617,206
Other Infrastructure and Landfill
- Management valuation 2015 - level 3 10,542,000 0
- Cost 0 8,420,324
Less accumulated depreciation 0 (171,896)
10,542,000 8,248,428
375,684,650 89,968,132
The fair value of infrastructure is determined at least every three years in accordance with
legislative requirements. Additions since the date of valuation are shown as cost. Given they were
acquired at arms length and any accumulated depreciation reflects the usage of service potential,
it is considered the recorded written down value approximates fair value. At the end of each
intervening period the valuation is reviewed and, where appropriate, the fair value is updated to
reflect current market conditions.
This process is considered to be in accordance with Local Government (Financial Management)
Regulation 17A (2) which requires infrastructure to be shown at fair value.
Page 34
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
7. INFRASTRUCTURE (Continued)
(b) Movements in Carrying Amounts
Movement in the carrying amounts of each class of infrastructure between the beginning and the end
of the current financial year.
Balance Carrying
as at the Revaluation Impairment Amount
Beginning Increments/ (Losses)/ Depreciation at the End
of the Year Additions (Disposals) (Decrements) Reversals (Expense) of the Year
$ $ $ $ $ $ $
Roads 43,757,851 926,197 0 274,420,418 0 (3,930,913) 315,173,553
Footpaths 1,483,786 19,342 0 639,000 0 (50,679) 2,091,449
Drainage 1,386,745 0 0 5,454,698 0 (61,777) 6,779,666
Parks & Ovals 20,681,164 1,830,829 0 (7,307,357) 0 (543,582) 14,661,054
Bridges 6,247,760 0 0 1,887,825 0 (155,585) 7,980,000
Levee System 5,402,644 14,329 0 3,563,644 0 (30,617) 8,950,000
Airport 2,142,548 109,730 0 6,907,948 0 (111,324) 9,048,902
Car Parks 617,206 0 0 (114,930) 0 (44,250) 458,026
Other Infrastructure and Landfill 8,248,428 11,335 0 2,467,186 0 (184,949) 10,542,000
Total infrastructure 89,968,132 2,911,762 0 287,918,432 0 (5,113,676) 375,684,650
The revaluation of infrastructure assets resulted in a net increase on revaluation of $287,918,432 in the net value of infrastructure.
All of the increments ($295,340,719) were credited to the revaluation surplus in the Shire's equity (refer Note 12) and were recognised as Changes on Revaluation
of non-current assets in the Statement of Comprehensive Income, where as the decrements ($7,422,287) were recognised as Loss on revaluation of fixed assets.
Page 35
7. INFRASTRUCTURE (Continued)
(c) Fair Value Measurements
Asset ClassFair Value
HierarchyValuation Technique Basis of valuation
Date of last
ValuationInputs used
Roads 3Cost approach using depreciated
replacement costManagement Valuation June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Footpaths 3Cost approach using depreciated
replacement costManagement Valuation June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Drainage 3Cost approach using depreciated
replacement costManagement Valuation June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Parks & Ovals 3Cost approach using depreciated
replacement costIndependent Valuers June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Bridges 3Cost approach using depreciated
replacement costIndependent Valuers June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Levee System 3Cost approach using depreciated
replacement costIndependent Valuers June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Airport 3Cost approach using depreciated
replacement costIndependent Valuers June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Car Parks 3Cost approach using depreciated
replacement costManagement Valuation June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Other Infrastructure and
Landfill3
Cost approach using depreciated
replacement costIndependent Valuers June 2015
Construction costs and current condition (Level 2) residual
values and remaining useful life assessments (Level 3)
inputs
Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of
these assumptions were varied , they have the potential to result in a significantly higher or lower fair value measurement.
During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
Page 36
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014
$ $
8. TRADE AND OTHER PAYABLES
Current
Sundry creditors 1,421,537 2,061,777
Accrued interest on debentures 3,052 4,607
Accrued salaries and wages 193,780 181,682
ATO liabilities 104,741 83,099
Prepaid Income 1,400,000 3,600,0003,123,110 5,931,165
9. LONG-TERM BORROWINGS
Current
Secured by floating charge
Debentures 475,433 487,181475,433 487,181
Non-current
Secured by floating charge
Debentures 649,790 1,125,223649,790 1,125,223
Additional detail on borrowings is provided in Note 21.
10. PROVISIONS
Provision for Provision for
Annual Long Service
Leave Leave Total
$ $ $
Opening balance at 1 July 2014 550,595 311,859 862,454
Non-current provisions 0 51,133 51,133
550,595 362,992 913,587
Amounts used (1,656) (76,713) (78,369)Balance at 30 June 2015 548,939 286,279 835,218
Comprises
Current 548,939 198,867 747,806
Non-current 0 87,412 87,412548,939 286,279 835,218
Page 37
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2015 2014
$ Budget $
$
11. RESERVES - CASH BACKED
(a) Leave Reserve
Opening balance 126,394 126,394 126,097
Amount set aside / transfer to reserve 5,023 1,011 297
Amount used / transfer from reserve 0 0 0
131,417 127,405 126,394
(b) Plant Reserve
Opening balance 120,818 120,818 120,534
Amount set aside / transfer to reserve 4,801 966 284
Amount used / transfer from reserve 0 0 0
125,619 121,784 120,818
(c) Waste Disposal Reserve
Opening balance 36,080 36,080 35,995
Amount set aside / transfer to reserve 1,433 288 85
Amount used / transfer from reserve 0 0 0
37,513 36,368 36,080
(d) Property Infrastructure Reserve
Opening balance 1,628 1,628 1,624
Amount set aside / transfer to reserve 64 13 4
Amount used / transfer from reserve 0 0 0
1,692 1,641 1,628
(e) Staff Housing Reserve
Opening balance 662,958 662,958 304,707
Amount set aside / transfer to reserve 31,231 225,299 358,251
Amount used / transfer from reserve 0 0 0
694,189 888,257 662,958
(f) Civic Centre Reserve
Opening balance 100,717 100,717 100,383
Amount set aside / transfer to reserve 1,782 805 334
Amount used / transfer from reserve 0 (100,000) 0
102,499 1,522 100,717
(g) I.T. Replacement Reserve
Opening balance 64,481 64,481 64,322
Amount set aside / transfer to reserve 1,918 515 159
Amount used / transfer from reserve (14,983) (29,000) 0
51,416 35,996 64,481
(h) Airport Reserve
Opening balance 28,223 28,223 28,136
Amount set aside / transfer to reserve 1,851 33,023 87
Amount used / transfer from reserve 0 0 0
30,074 61,246 28,223
(i) Coral Bay Tip Reserve
Opening balance 20,790 20,790 20,737
Amount set aside / transfer to reserve 827 166 53
Amount used / transfer from reserve 0 0 0
21,617 20,956 20,790
Page 38
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2015 2014
$ Budget $
$
11. RESERVES - CASH BACKED (CONTINUED)
(j) Surge/Fascine Wall Reserve
Opening balance 5,958 5,958 304,824
Amount set aside / transfer to reserve 237 48 1,134
Amount used / transfer from reserve 0 0 (300,000)
6,195 6,006 5,958
(k) Town Planning Scheme Reserve
Opening balance 22,080 22,080 22,040
Amount set aside / transfer to reserve 877 176 40
Amount used / transfer from reserve 0 0 0
22,957 22,256 22,080
(l) Fascine Dredging Reserve
Opening balance 1,270 1,270 250,470
Amount set aside / transfer to reserve 50 10 800
Amount used / transfer from reserve 0 0 (250,000)
1,320 1,280 1,270
(m) Flood Mitigation Reserve
Opening balance 10,008 10,008 9,832
Amount set aside / transfer to reserve 397 80 176
Amount used / transfer from reserve 0 0 0
10,405 10,088 10,008
(n) OTC/NASA Reserve
Opening balance 7,530 7,530 7,512
Amount set aside / transfer to reserve 298 60 18
Amount used / transfer from reserve 0 0 0
7,828 7,590 7,530
(o) Blowholes Reserve
Opening balance 20,469 20,469 20,425
Amount set aside / transfer to reserve 813 164 44
Amount used / transfer from reserve 0 0 0
21,282 20,633 20,469
(p) Unspent Grants and Contributions Reserve
Opening balance 10,472,564 10,472,564 30,486,721
Amount set aside / transfer to reserve 2,989,406 83,803 11,118,398
Amount used / transfer from reserve (6,399,913) (10,337,436) (31,132,555)
7,062,057 218,931 10,472,564
(q) Land and Infrastructure Development Reserve
Opening balance 772,010 772,010 770,352
Amount set aside / transfer to reserve 635,876 1,306,170 1,658
Amount used / transfer from reserve (451,551) (562,000) 0
956,335 1,516,180 772,010
(r) Asset Replacement Reserve
Opening balance 25,053 25,053 0
Amount set aside / transfer to reserve 996 200 25,053
Amount used / transfer from reserve 0 0 0
26,049 25,253 25,053
Page 39
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2015 2014
$ Budget $
$
11. RESERVES - CASH BACKED (CONTINUED)
TOTAL RESERVES 9,310,464 3,123,392 12,499,031
Total Opening balance 12,499,031 12,499,031 32,674,711
Total Amount set aside / transfer to reserve 3,677,880 1,652,797 11,506,875
Total Amount used / transfer from reserve (6,866,447) (11,028,436) (31,682,555)TOTAL RESERVES 9,310,464 3,123,392 12,499,031
All of the reserve accounts are supported by money held in financial institutions and match the
amount shown as restricted cash in Note 3 to this financial report.
Page 40
11. RESERVES - CASH BACKED (CONTINUED)
In accordance with council resolutions in relation to each reserve account, the purpose for which
the funds are set aside are as follows:
(a) Leave Reserve
(b) Plant Reserve
(c) Waste Disposal Reserve
(d) Property Infrastructure Reserve
(e) Staff Housing Reserve
(f) Civic Centre Reserve
(g) I.T. Replacement Reserve
(h) Airport Reserve
(i) Coral Bay Tip Reserve
(j) Surge/Fascine Wall Reserve
(k) Town Planning Scheme Reserve
(l) Fascine Dredging Reserve
(m) Flood Mitigation Reserve
(n) OTC/NASA Reserve
(o) Blowholes Reserve
(p) Unspent Grants and Contributions Reserve
(q) Land and Infrastructure Development Reserve
- the purchase of land and development of infrastructure within the Shire of Carnarvon
(r) Asset Replacement Reserve
- The replacement and improvement of specified assets within the Shire of Carnarvon
in accordance with the Shire of Carnarvon’s Asset Management Plan
The Unspent Grants and Contributions Reserve is expected to be utilised in 2015/2016.
All other Resveres are not expected to be used within a set period as further transfers to the
reserve accounts are expected as funds are utilised.
- to be used to contribute to replacement or major upgrades on Shire of Carnarvon ablutions.
- to be used for major maintenance and capital purchase with respect to staff housing.
- to be used to finance Council's obligations with respect to the Flood Mitigation Strategy.
- to be used for capital upgrade costs associated with the Fascine Wall.
- to be used to isolate grants and contributions for specific purposes to be spent at a later date
- to be used to contribute to funding town planning scheme reviews, new scheme & relevant
- to be used to contribute to funding the fascine dregding program.
- to be used to assist with the removal os shack debris and post-demolition rehabilitation of
TP purposes.
- to be used for the development & conservation of the OTC site.
or in subsequent years(s)
- to be used to fund annual and long service leave requirements.
- to be used to implement the Shire's Plant Replacement Program.
- to be used for maintenance or capital expenditure at Browns Range Refuse Site.
- to be used to fund the Shire of Carnarvon Information Technology Strategy.
- to be used for maintenance and capital costs associated with Coral Bay Refuse Site.
- to be used for major building and equipment upgrades to Carnarvon Civic Centre.
- to be used to contribute to capital costs in relation to the Carnarvon Airport.
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
shack area.
Page 41
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
12. REVALUATION SURPLUS 2015 2014
$ $
Revaluation surpluses have arisen on
revaluation of the following classes of
non-current assets:
(a) Land and buildings
Opening balance 13,900,741 0
Revaluation increment 0 13,900,741
Revaluation decrement 0 0
13,900,741 13,900,741
(b) Plant and Equipment
Opening balance 783,753 783,753
Revaluation increment 0 0
Revaluation decrement 0 0
783,753 783,753
(c) Roads
Opening balance 16,705,444 16,705,444
Revaluation increment 274,420,418 0
Revaluation decrement 0 0
291,125,862 16,705,444
(d) Footpaths
Opening balance 0 0
Revaluation increment 639,000 0
Revaluation decrement 0 0
639,000 0
(e) Drainage
Opening balance 0 0
Revaluation increment 5,454,698 0
Revaluation decrement 0 0
5,454,698 0
(f) Bridges
Opening balance 0 0
Revaluation increment 1,887,825 0
Revaluation decrement 0 0
1,887,825 0
(g) Levee System
Opening balance 0 0
Revaluation increment 3,563,644 0
Revaluation decrement 0 0
3,563,644 0
(h) Airport
Opening balance 0 0
Revaluation increment 6,907,948 0
Revaluation decrement 0 0
6,907,948 0
Page 42
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
12. REVALUATION SURPLUS (CONTINUED) 2015 2014
$ $
(i) Other Infrastructure and Landfill
Opening balance 0 0
Revaluation increment 2,467,186 0
Revaluation decrement 0 0
2,467,186 0
TOTAL ASSET REVALUATION SURPLUS 326,730,657 31,389,938
Page 43
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
13. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents,net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to therelated items in the Statement of Financial Position as follows:
2015 2015 2014$ Budget $
$
Cash and cash equivalents 14,947,141 3,316,654 14,559,252
(b) Reconciliation of Net Cash Provided ByOperating Activities to Net Result
Net result (6,544,246) (6,221,878) (25,270,028)
Non-cash flows in Net result:Depreciation 6,355,354 5,709,669 5,724,817(Profit)/Loss on sale of asset (490,785) (971,543) (297,020)Loss on revaluation of fixed assets 7,422,287 0 21,432
Changes in assets and liabilities:(Increase)/Decrease in receivables 127,942 (806,000) 1,866,508(Increase)/Decrease in inventories (15,076) 5,787 (33,205)Increase/(Decrease) in payables (2,808,055) 126,836 (8,243,093)Increase/(Decrease) in provisions (78,369) (180,000) 241,339
Grants contributions for the development of assets (4,730,148) (652,876) (5,258,067)Net cash from operating activities (761,096) (2,990,005) (31,247,316)
2015 2014(c) Undrawn Borrowing Facilities $ $
Credit Standby ArrangementsBank overdraft limit 200,000 200,000 200,000Bank overdraft at balance date 0 0 0Credit card limit 40,000 0 40,000Credit card balance at balance date (2,816) 0 (1,402)Total amount of credit unused 237,184 200,000 238,598
Loan facilitiesLoan facilities - current 475,433 487,181Loan facilities - non-current 649,790 1,125,223Total facilities in use at balance date 1,125,223 1,612,404
Unused loan facilities at balance date NIL NIL
14. CONTINGENT LIABILITIES
The Shire is not aware of any contingent liabilities as at 30th June 2015.
Page 44
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 201415. CAPITAL AND LEASING COMMITMENTS $ $
(a) Operating Lease Commitments
Payable:- not later than one year 211,280 217,908- later than one year but not later than five years 495,473 666,596- later than five years 0 0
706,753 884,504
(b) Capital Expenditure Commitments
16. JOINT VENTURE ARRANGEMENTS
17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY2015 2014
$ $
Governance 3,647,266 3,899,116Law, order, public safety 472,827 503,631Health 133,636 157,992Education and welfare 1,812,899 1,884,971Housing 887,125 920,000Community amenities 11,693,489 8,220,022Recreation and culture 39,106,263 43,286,992Transport 343,387,445 57,756,090Other property and services 2,635,620 2,952,646Unallocated 19,901,909 18,674,151
423,678,479 138,255,611
The Shire is not involved in any joint venture arrangements.
Non-cancellable operating leases contracted for but
The Shire did not have any future capital expenditure commitments at the reporting date.
Page 45
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014 201318. FINANCIAL RATIOS
Current ratio 1.64 0.48 1.12Asset sustainability ratio 0.54 1.14 2.69Debt service cover ratio (8.83) (72.31) (153.19)Operating surplus ratio (1.14) (3.53) (2.83)Own source revenue coverage ratio 0.42 0.17 0.22
The above ratios are calculated as follows:
Current ratio current assets minus restricted assetscurrent liabilities minus liabilities associated
with restricted assets
Asset sustainability ratioDepreciation expenses
Debt service cover ratio annual operating surplus before interest and depreciationprincipal and interest
Operating surplus ratio operating revenue minus operating expensesown source operating revenue
Own source revenue coverage ratio own source operating revenueoperating expenses
Notes:
(a) Information relating to the asset consumption ratio and the asset renewal funding ratiocan be found at Supplementary Ratio Information on Page 63 of this document.
(b) For 2015,(i) the Current, Debt Service Cover and the Operating Surplus ratios as discolsed above were distortedby an item of significant revenue relating to the early payment of 2015/16 Financial Assistance Grants(FAGs) of $2,469,631 which was received prior to year end.(ii) The Debt Service Cover, Operating Surplus and Own Service Revenue Coverage ratios as disclosedabove were all distorted by an item of significant expenditure totalling $2,254,707 (Net of revenue) relating to flood mitigation work of which the corresponding revenue was recognised in 2012.(iii) The Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by anitem of significant expenditure totalling $7,422,287 relating to the loss on revaluation of infrastructureassets.(iv) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosedabove were all distorted by an item of significant revenue totalling $1,206,489 relating to financialsupport and insurance reimbursements for cyclone damage.
(c) For 2014,(i) the Current, Debt Service Cover and Operating Surplus ratios disclosed above were distorted by the changeto the payment of FAGs during the year ended 30 June 2014 which saw the advance payment of the firstquarter of the following year cease. This created a timing difference which resulted in an amount of some$2,475,700 less revenue for the year.(ii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as discolsed above were all distorted by an item of significant expenditure totalling $24,241,244 (Net of revenue) relating toflood mitigation work of which the corresponding revenue was recognised in 2012.
capital renewal and replacement expenditure
Page 46
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
18. FINANCIAL RATIOS (CONTINUED)
(d) For 2013,(i) the effect of the FAGs advance payment in 2013 weas negligible as it had also occurred in the previousyear. Ineffect, four quarterly payments were received in both years so it was not considered necessary tocalculate and disclose the effect of any distortion as it was not considered significant.(ii) The Debt Service Cover and Operating Surplus ratios as disclosed above were all distorted by an itemof significant revenue totalling $360,807 relating to the initial recognition of Land under the Shire's control inaccordance with amendments to the Financial Management Regulations.(Refer to Note 1(f) for further details).(iii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed abovewere all distorted by an item of significant expenditure totalling $22,357,993 (Net of revenue) relating to floodmitigation work of which the corresponding revenue was recognised in 2012.
Items (a) to (d) mentioned above are considered "one-off" timing/non cash in nature and, if they are ignored,the calulations disclosed in the columns above would be as follows:
2015 2014 2013Current ratio 1.06 0.83 1.12Debt service cover ratio 2.08 5.76 21.34Operating surplus ratio (0.61) (0.43) 0.34Own source revenue coverage ratio 0.43 0.47 0.51
Page 47
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
19. TRUST FUNDS
Funds held at balance date over which the Shire has no control and which are not included in
the financial statements are as follows:
Balance Amounts Amounts Balance
1 July 2014 Received Paid 30 June 2015
$ $ ($) $
Civic Centre Hire 6,129 7,554 (7,554) 6,129
Footpath Deposits 20,299 0 0 20,299
Private Works Deposits 1,000 0 0 1,000
Shire Facility Deposits 4,500 5,450 (4,400) 5,550
Public Open Space 110,374 0 0 110,374
Other Sundry Trust 9,438 36,178 (36,794) 8,822
Suspence 4,581 790 (151) 5,220
Unclaimed Monies 1,242 4,220 0 5,462
Carnarvon Artificial 0 0 0 0
Civic Centre Airconditioning 51 0 0 51
Perth Glory 12,500 0 0 12,500
BCTIF 2,435 29,216 (31,651) 0
Nomination Deposits 0 0 0 0
Footpath Cash in Lieu 7,200 0 0 7,200179,749 182,607
20. DISPOSALS OF ASSETS - 2014/15 FINANCIAL YEAR
The following assets were disposed of during the year.
Net Book Value Sale Price Profit (Loss)
Actual Budget Actual Budget Actual Budget
$ $ $ $ $ $
Law, order, public safety
C12891 Mazda BT-50 0 23,283 0 17,000 0 (6,283)
Community amenities
C1747 Mazda Bravo Freestyle Ute 0 18,109 0 6,000 0 (12,109)
Transport
C11191 Multi Tyred Roller 0 38,145 0 30,000 0 (8,145)
C27504 Hino Truck 0 40,870 0 25,000 0 (15,870)
C1741 NPR Dual Cab Truck 0 38,805 0 25,000 0 (13,805)
C15853 BH-1830GR Combination Grid Roller 0 77,610 0 70,000 0 (7,610)
1BNU567 Caterpillar 950GSW Loader 142,986 154,397 63,636 80,000 (79,350) (74,397)
C12117 Isuzu Road Sweeper 0 108,986 0 25,000 0 (83,986)
C500 Holden Ute 0 12,073 0 5,000 0 (7,073)
Other property and services
Sale of 3 Lukis Place 0 50,021 0 220,000 0 169,979
Sale of Car Park on CNR Olivia Terrace & Alexander Street 0 250,484 0 780,000 0 529,516
Sale of 14 Mahoney Avenue Browns Range - OTC (Part Subdivided) 18,675 18,675 588,810 520,000 570,135 501,325
161,661 831,458 652,446 1,803,000 490,785 971,542
Profit 570,135 1,200,820
Loss (79,350) (229,278)490,785 971,542
Page 48
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
21. INFORMATION ON BORROWINGS
(a) Repayments - Debentures
Principal Principal Principal Interest
New Repayments 30 June 2015 Repayments
Loans Actual Budget Actual Budget Actual Budget
Particulars $ $ $ $ $ $ $ $
Housing
Loan 213 Staff Housing 73,805 0 9,142 9,142 64,663 59,854 4,280 4,310
Recreation and culture
Loan 211 Library 258,277 0 67,544 67,544 190,733 169,985 16,220 16,580
Loan 215 Infrastructure Development 590,325 0 122,746 122,746 467,579 453,862 21,249 21,477
Transport
Loan 212 Roller 30,474 0 30,474 30,475 0 (2,779) 1,034 1,433
Loan 214 Plant 659,523 0 257,275 257,277 402,248 387,637 19,901 20,362
1,612,404 0 487,181 487,184 1,125,223 1,068,559 62,684 64,162
All loan repayments were financed by general purpose revenue.
(b) New Debentures - 2014/15
(c) Unspent Debentures
(d) Overdraft
Council established an overdraft facility of $200,000 in 1997 to assist with short term liquidity requirements.
The Shire did not take up any new debentures during the year ended 30 June 2015.
The Shire did not have any unspent debentures as at 30 June 2015.
The balance of the bank overdraft at 1 July 2014 and 30 June 2015 was nil.
1 July
2014
Page 49
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
22. RATING INFORMATION - 2014/15 FINANCIAL YEAR
(a) Rates Rate in Number Rateable Rate Interim Back Total Budget Budget Budget Budget
$ of Value Revenue Rates Rates Revenue Rate Interim Back Total
Properties $ $ $ $ $ Revenue Rate Rate Revenue
RATE TYPE $ $ $ $
Differential general rate / general rate
Gross rental value valuations
GRV Valued Properties 6.8765 1,856 45,095,528 3,100,994 13,825 43,487 3,158,306 3,091,001 15,000 500 3,106,501
Unimproved value valuations
UV Mining 10.0542 27 1,094,597 110,053 (11,714) 0 98,339 93,198 10,000 0 103,198
UV Pastoral 5.7453 31 3,914,382 224,893 3,111 (4,832) 223,172 225,008 0 0 225,008
UV Plantations 0.7159 168 67,163,989 480,827 222 0 481,049 436,592 0 0 436,592
Sub-Totals 2,082 117,268,496 3,916,767 5,444 38,655 3,960,866 3,845,799 25,000 500 3,871,299
Minimum
Minimum payment $
Gross rental value valuations
GRV Valued Properties 798 222 1,700,506 177,156 0 0 177,156 177,954 0 0 177,954
Unimproved value valuations
UV Mining 350 28 32,419 9,800 0 0 9,800 9,800 0 0 9,800
UV Pastoral 350 3 4,706 1,050 0 0 1,050 1,050 0 0 1,050
UV Plantations 700 1 10,011 700 0 0 700 700 0 0 700
Sub-Totals 254 1,747,642 188,706 0 0 188,706 189,504 0 0 189,504
4,149,572 4,060,803
Ex-gratia rates 2100 0
Discounts/concessions (refer note 25) 0 0
Excess Rates (10,777) 0
Total amount raised from general rate 4,140,895 4,060,803
Specified Area Rate (refer note 23) 180,053 180,000
Totals 4,320,948 4,240,803
Page 50
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
22. RATING INFORMATION - 2014/15 FINANCIAL YEAR (Continued)
(b)
2015 2015 2014
Carried Forward) Brought Forward) Carried Forward)$ $ $
Surplus/(Deficit) 1 July 14 brought forward 5,196,939 1,131,054 1,131,054
Comprises:Cash and cash equivalents
Unrestricted 5,636,677 2,060,221 2,060,221Restricted 9,310,464 12,499,031 12,499,031
ReceivablesRates outstanding 362,118 320,264 320,264Sundry debtors 627,465 602,562 602,562GST receivable 150,225 104,424 104,424
ESL Receivable 31,465 25,712 25,712
Accrued Income 14,186 266,199 266,199
Bond Staff Housing 2,050 2,050 2,050Inventories
Fuel and materials 51,259 48,342 48,342
Civic Centre 8,120 3,864 3,864
Visitors Centre 36,484 28,582 28,582Less:Trade and other payables
Sundry creditors (1,421,537) (2,061,777) (2,061,777)Accrued interest on debentures (3,052) (4,607) (4,607)Accrued salaries and wages (193,780) (181,682) (181,682)
ATO liabilities (104,741) (83,099) (83,099)
Prepaid Income (1,400,000) (3,600,000) (3,600,000)Current portion of long term borrowings
Secured by floating charge (475,433) (487,181) (487,181)Provisions
Provision for annual leave (548,939) (550,595) (550,595)Provision for long service leave (198,867) (311,859) (311,859)
Net current assets 11,884,164 8,680,450 8,680,450Less:Reserves - restricted cash (9,310,464) (12,499,031) (12,499,031)Add:Secured by floating charge 475,433 487,181 487,181
Provision for annual leave 548,939 550,595 550,595
Provision for long service leave 198,867 311,859 311,859
Prepaid Income 1,400,000 3,600,000 3,600,000
Surplus/(deficit) 5,196,939 1,131,054 1,131,054
Difference
in the 2015 audited financial report and the surplus/(deficit) carried forward position as disclosedin the 2014 audited financial report.
Information on Surplus/(Deficit) Brought Forward
(30 June 2014
There was no difference between the surplus/(deficit) 1 July 2014 brought forward position used
(1 July 2014(30 June 2015
Page 51
23
Rate in Basis Rateable Rate Budget Applied Budget
$ of Value Revenue Rate to Costs Applied
Rate $ $ Revenue $ to Costs
$ $
Coral Bay Refuse Site 6.5000 GRV 3,288,960 180,053 180,000 180,053 180,000
180,053 180,000 180,053 180,000
Coral Bay Refuse Site:
The specified area rate for Coral Bay Refuse Site is to contribute to the maintenance and
future deliberations of the Coral Bay refuse site. The rate will be applied to all rateable properties within.
Coral Bay. The proceeds of the rate are applied in full to the Coral Bay refuse site.
There is no anticipated unspent surplus The proceeds of the rate are applied in full to the Coral Bay
refuse site from this scheme and therefore no transfer to reserve fund at year end.
24 SERVICE CHARGES - 2014/15 FINANCIAL YEAR
The Shire did not impose any service charges.
25 DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS
- 2014/15 FINANCIAL YEAR
No discount on rates is available.
26 INTEREST CHARGES AND INSTALMENTS - 2014/15 FINANCIAL YEAR
Interest Admin. Revenue Budgeted
Rate Charge $ Revenue
% $ $
Interest on unpaid rates 11.00% N/A 48,514 40,000
Interest on instalments plan 5.50% N/A 16,489 14,000
Charges on instalment plan N/A 4 4,628 4,000
69,631 58,000
Ratepayers had the option of paying rates in four equal instalments, due 20 October 2014, 19 December 2014,
17 February 2015 and 18 April 2015. Administration charges and interest applied for the final three
2015 2014
27 FEES & CHARGES $ $
Governance 35 176
General purpose funding 27,745 27,173
Law, order, public safety 26,582 30,876
Health 30,906 37,684
Education and welfare 2,269 1,754
Community amenities 1,405,144 1,531,432
Recreation and culture 155,916 188,819
Transport 784,542 990,288
Economic services 534,395 590,102
Other property and services 13,236 46,2942,980,770 3,444,598
There were no changes during the year to the amount of the fees or charges detailed in the original
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
budget.
SPECIFIED AREA RATE - 2014/15 FINANCIAL YEAR
Page 52
28 GRANT REVENUE
Grants, subsidies and contributions are included as operating
revenues in the Statement of Comprehensive Income:
2015 2014
By Nature or Type: $ $
Operating grants, subsidies and contributions 9,910,094 11,822,872
Non-operating grants, subsidies and contributions 4,730,148 5,258,06714,640,242 17,080,939
By Program:
General purpose funding 7,337,685 2,296,281
Law, order, public safety 133,246 140,555
Health 1,284 23,426
Education and welfare 550,760 337,825
Community amenities 26,606 150,000
Recreation and culture 2,303,358 3,088,200
Transport 2,390,798 10,893,151
Economic services 19,232 132,500
Other property and services 1,877,273 19,00114,640,242 17,080,939
29. EMPLOYEE NUMBERS
The number of full-time equivalentemployees at balance date 80 68
2015 2015 2014
30. ELECTED MEMBERS REMUNERATION $ Budget $
$
The following fees, expenses and allowances were
paid to council members and/or the president.
Meeting Fees 112,375 116,000 111,771
President’s allowance 34,400 34,400 34,400
Deputy President’s allowance 8,600 8,600 8,600
Travelling expenses 784 4,500 4,494
Telecommunications allowance 4,227 4,500 4,327160,386 168,000 163,592
31. MAJOR LAND TRANSACTIONS
The Shire did not participate in any major land transactions during the 2014/15.
32. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
financial year.
The Shire did not participate in any trading undertakings or major trading undertakings during the 2014/15
Page 53
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
33. FINANCIAL RISK MANAGEMENT
foreign currency risk.
Carrying Value Fair Value
2015 2014 2015 2014
$ $ $ $
Financial assets
Cash and cash equivalents 14,947,141 14,559,252 14,947,141 14,559,252
Receivables 1,243,759 1,371,701 1,243,759 1,371,70116,190,900 15,930,953 16,190,900 15,930,953
Financial liabilities
Payables 3,123,110 5,931,165 3,123,110 5,931,165
Borrowings 1,125,223 1,612,404 1,020,207 1,477,3874,248,333 7,543,569 4,143,317 7,408,552
Fair value is determined as follows:
• Cash and cash equivalents, receivables, payables - estimated to the carrying value which
approximates net market value.
• Borrowings - estimated future cash flows discounted by the current
market interest rates applicable to assets and liabilities with similar risk profiles.
The Shire’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and
The Shire does not engage in transactions expressed in foreign currencies and is therefore not subject to
Financial risk management is carried out by the finance area under policies approved by the Council.
The Shire held the following financial instruments at balance date:
interest rate risk. The Shire’s overall risk management focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Shire.
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SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
33. FINANCIAL RISK MANAGEMENT (Continued)
(a) Cash and Cash Equivalents
could affect returns.
2015 2014
$ $
Impact of a 1% (1) movement in interest rates on cash
- Equity 147,532 246,745
- Statement of Comprehensive Income 147,532 246,745
Notes:(1)
Cash is subject to interest rate risk - the risk that movements in interest rates
Another risk associated with cash is credit risk – the risk that a contracting entity will not complete its
The Shire manages these risks by diversifying its portfolio and only investing its funds as authorised
The Shire’s objective is to maximise its return on cash whilst maintaining an adequate
obligations under a financial instrument resulting in a financial loss to the Shire.
by Local Government (Financial Management) Regulation 19C . Council also seeks advice from
independent advisers (where considered necessary) before placing any cash and investments.
Sensitivity percentages based on management's expectation of future possible market movements.
level of liquidity and preserving capital. The finance area manages the cash portfolio
with the assistance of independent advisers (where applicable). The Shire has an investment policy and
the policy is subject to review by Council. An Investment Report is provided to Council on a monthly
basis setting out the make-up and performance of the portfolio.
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SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
33. FINANCIAL RISK MANAGEMENT (Continued)
(b) Receivables
most non-rate debtors.
2015 2014
Percentage of rates and annual charges
- Current 0.00% 0.00%
- Overdue 100.00% 100.00%
Percentage of other receivables
- Current 87.78% 90.66%
- Overdue 12.22% 9.34%
The profile of the Shire’s credit risk at balance date was:
The Shire makes suitable provision for doubtful receivables as required and carries out credit checks on
There are no material receivables that have been subject to a re-negotiation of repayment terms.
monitored for acceptable collection performance.
risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The
Shire manages this risk by monitoring outstanding debt and employing debt recovery policies. It also
The Shire’s major receivables comprise rates and annual charges and user charges and fees. The major
The level of outstanding receivables is reported to Council monthly and benchmarks are set and
encourages ratepayers to pay rates by the due date through incentives.
a secured charge over the land – that is, the land can be sold to recover the debt. The Shire is also able
to charge interest on overdue rates and annual charges at higher than market rates, which further
encourages payment.
Credit risk on rates and annual charges is minimised by the ability of the Shire to recover these debts as
Page 56
SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
33. FINANCIAL RISK MANAGEMENT (Continued)
(c) Payables
Borrowings
Due Due Due Total
within between after contractual Carrying
1 year 1 & 5 years 5 years cash flows values
$ $ $ $ $
2015
Payables 3,123,110 0 0 3,123,110 3,123,110
Borrowings 519,435 679,367 10,088 1,208,890 1,125,2233,642,545 679,367 10,088 4,332,000 4,248,333
2014
Payables 5,931,165 0 0 5,931,165 5,931,165
Borrowings 551,342 1,185,351 23,539 1,760,232 1,612,4046,482,507 1,185,351 23,539 7,691,397 7,543,569
Payables and borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations
The contractual undiscounted cash flows of the Shire’s Payables and Borrowings are set out in the Liquidity Sensitivity Table below:
as and when they fall due. The Shire manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate
cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required.
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SHIRE OF CARNARVON
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2015
33. FINANCIAL RISK MANAGEMENT (Continued)
(c) Payables
Borrowings (continued)
negotiation.
The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk: Weighted
Average
Effective
<1 year >1<2 years >2<3 years >3<4 years >4<5 years >5 years Total Interest Rate
$ $ $ $ $ $ $ %
Year ended 30 June 2015
Borrowings
Fixed rate
Debentures 0 402,249 190,732 467,579 0 64,663 1,125,223 4.29%
Weighted average
Effective interest rate 3.34% 6.96% 3.77% 6.04%
Year ended 30 June 2014
Borrowings
Fixed rate
Debentures 30,474 0 659,523 258,277 590,325 73,805 1,612,404 4.25%
Weighted average
Effective interest rate 5.90% 3.34% 6.96% 3.77% 6.04%
manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of
Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs. The Shire
Page 58
34. PRIOR PERIOD CORRECTIONS
Fascine Grant Funding
Effect of the above:
Original
Balance
Amount of
Adjustment
Adjusted
Balance
$ $ $
Changes to Financial Statements
- by Nature or Type
Revenue
Non-operating grants, subsidies and contributions 8,858,067 ( 3,600,000) 5,258,067
- by Program
Non-operating grants,
Subsidies and contributions
Recreations and Culture 6,583,095 (3,600,000) 2,983,095
Statement of Financial Position
Current Liabilities
Trade and other payables 2,331,165 3,600,000 5,931,165
Equity
Retained Surplus 89,509,486 (3,600,000) 89,509,486
Statement of Cash Flows
Payments
Materials and contracts (47,278,199) 3,600,000 (43,678,199)
Cash Flows from Investing Activities
Non-operating grants, subsidies and contributions 8,858,067 (3,600,000) 5,258,067
Rates Setting Statement
Revenue
Recreation and culture 6,880,821 (3,600,000) 3,280,821
Changes to Notes of the Financial Report
Note 8 - Trade and Other Payables
Current
Prepaid Income 0 3,600,000 3,600,000
Note 13 - Notes to the Statement of Cash Flows
-(b) Reconciliation of Net Cash by Operating Activities
to Net Result
Increase/Decrease in payables (11,843,093) 3,600,000 (8,243,093)
Grants contributions for the development of Assets (8,858,067) 3,600,000 (5,258,067)
Shire of Carnarvon and the Department of Regional Development. Due to the Shire not having complete
control over the funds, a prepaid income liability should have been recognised with revenue only being
recognised in later financial years when the funds are transferred to the Shire's operating account.
This correction has been made in this financial year accordingly.
In June 2014, Shire of Carnarvon received grant funding from the Department of Regional Development in
relation to the fascine project. This funding was placed in a WATC account under the joint custody of the
SHIRE OF CARNARVON
SUPPLEMENTARY RATIO INFORMATION
FOR THE YEAR ENDED 30TH JUNE 2015
Balances relating to the 2014 comparative year have been amended due to the correction of prior period
errors. These errors have been adjusted as shown below and, in accordance with the requirements of
AASB101, a statement of financial position as at the beginning of the earliest comparative period have
been included.
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34. PRIOR PERIOD CORRECTIONS (Continued)
Note 22 - Rating Information - 2014/15 Financial Year
-(b) Information on Surplus/(Deficit) Brought Forward
Prepaid Income 0 (3,600,000) (3,600,000)
Note 28 - Grant Revenue
By Nature or Type
Non-operating grants,
Subsidies and contributions 8,858,067 (3,600,000) 5,258,067
By Program
Recreation and culture 6,688,200 (3,600,000) 3,088,200
SHIRE OF CARNARVON
SUPPLEMENTARY RATIO INFORMATION
FOR THE YEAR ENDED 30TH JUNE 2015
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RATIO INFORMATION
2015 2014 2013
Asset consumption ratio 0.57 0.70 0.68
Asset renewal funding ratio 3.08 2.90 2.73
The above ratios are calculated as follows:
Asset consumption ratio
Asset renewal funding ratio
depreciated replacement costs of assets
current replacement cost of depreciable assets
NPV of planning capital renewal over 10 years
NPV of required capital expenditure over 10 years
SHIRE OF CARNARVON
SUPPLEMENTARY RATIO INFORMATION
The following information relates to those ratios which only require attestation they have been checked
and are supported by verifiable information. It does not form part of the audited financial report
FOR THE YEAR ENDED 30TH JUNE 2015
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