minutes special meeting of council 23 november 2015€¦ · special meeting of council minutes - 23...

MURCHISON REGIONAL VERMIN COUNCIL

MINUTES

SPECIAL MEETING OF COUNCIL

23 NOVEMBER 2015

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS ................... 3

2. RECORD OF ATTENDANCE / LEAVE OF ABSENCE .......................................... 3

3. ELECTION OF PRESIDENT ...................................................................................... 3

4. ELECTION OF DEPUTY PRESIDENT ..................................................................... 3

5. APOLOGIES................................................................................................................ 4

6. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ........... 4

7. PUBLIC QUESTION TIME ........................................................................................ 4

8. APPLICATIONS FOR LEAVE OF ABSENCE ......................................................... 4

9. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS.......................................... 4

10. CONFIRMATION OF MINUTES OF PREVIOUS MEETING................................. 4

10.1 Minutes of the Ordinary Meeting held on 7 September 2015 ....................... 4

11. ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION ......... 4

12. PETITIONS.................................................................................................................. 4

13. DECLARATIONS OF INTEREST ............................................................................. 4

14. BUSINESS DEFERRED FROM PREVIOUS MEETING ......................................... 5

15. REPORTS .................................................................................................................... 5

14.1 Appointment of Committees .......................................................................... 5 14.2 Cash Position Statement - As at 31 October 2015 ......................................... 8 14.3 Accounts for Payment - 1 September 2015 to 31 October 2015 ................... 9 14.4 Debtors - As at 31 October 2015 ................................................................. 11

14.5 Investment Register - As at 31 October 2015 .............................................. 11

14.6 Statement of Financial Activity to 31 October 2015 ................................... 14

14.7 Fence Maintenance ...................................................................................... 32 14.8 Discussion of route of fence required to complete Vermin Cell ................. 34

16. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ....................... 37

17. NOTICE OF MOTIONS FOR THE NEXT MEETING............................................ 37

18. CONFIDENTIAL BUSINESS................................................................................... 37

19. LATE AGENDA ITEMS ........................................................................................... 38

20. ELECTED MEMBER MATTERS ............................................................................ 38

21. NEXT MEETING ...................................................................................................... 38

22. CLOSURE OF MEETING ........................................................................................ 38

23. CERTIFICATION BY CHAIRMAN ........................................................................ 38

Special Meeting of Council Minutes - 23 November 2015 2 of 38

Prior to the commencement of the meeting, Councillors took their Elected Member Declarations of Office.

Murchison Regional Vermin Council Minutes for the Special Meeting of Council - Monday, 23 November 2015

In Council Chambers, 90 Hepburn Street, Mount Magnet

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS

The Chief Executive Officer, Mr Warren Olsen, opened the meeting at 10:11am.

2. RECORD OF ATTENDANCE / LEAVE OF ABSENCE Attendance President Cr Neil Grinham Deputy President Cr Jason Homewood Member Cr Harvey Nichols Member Cr David Hodder Member Cr Les Price Member Cr Robert Grinham Member Cr Ross Pigdon Leave of Absence Nil. Officers Chief Executive Officer Mr Warren Olsen Mr Ashley Dowden Field Coordinator Administration Supervisor Ms Ronella Kelly

3. ELECTION OF PRESIDENT Subclause 2 (1) (a) of Schedule 2.3 of the Local Government Act 1995 requires that the office of Shire President is to be filled as the first matter dealt with at the first meeting of the council after an ordinary elections day. The Returning Officer CEO Warren Olsen advised that two nominations had been received for the position of President, those being Cr Jason Homewood and Cr Neil Grinham. He asked if there were any further nominations; as there were no further nominations, ballot papers were distributed bearing the names of the two nominees. A secret ballot for the position was conducted by the Returning Officer. The result was 4 votes for Cr Grinham and 3 votes for Cr Homewood. On the basis of this outcome, Cr Grinham was declared elected as President for the period to October 2017, and the CEO invited him to assume the Chair.

Following election, the President is to took the Declaration of Office.

4. ELECTION OF DEPUTY PRESIDENT Subclause 7 (2) (a) of Schedule 2.3 of the Local Government Act 1995 requires that the office of Deputy President is to be filled as the next matter dealt with after the mayor or president is elected at the first meeting of the council after an ordinary elections day.


The Returning Officer CEO Warren Olsen advised that he had not received any nominations for Deputy President, and called for nominations from the floor. Cr Nichols nominated Cr Homewood, who accepted the nomination. The CEO asked if there were any further nominations and, there being no further nominations, he declared Cr Homewood elected unopposed as Deputy President for the period to October 2017.

5. APOLOGIES Member Cr Carol Hodshon Member Cr Joe O'Brien

The CEO was requested to write to the former MRVC Councillors who retired at the October 2015 elections, thanking them for their service.

6. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE Nil.

7. PUBLIC QUESTION TIME Nil.

8. APPLICATIONS FOR LEAVE OF ABSENCE Nil.

9. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS Nil.

10. CONFIRMATION OF MINUTES OF PREVIOUS MEETING

10.1 Minutes of the Ordinary Meeting held on 7 September 2015

COUNCIL RESOLUTION

Moved: Cr Robert Grinham Seconded: Cr Harvey Nichols That the minutes of the Ordinary Meeting held on 7 September 2015 as circulated be confirmed as a true and correct record of proceedings. CARRIED 7/0

11. ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION Nil.

12. PETITIONS Nil.

13. DECLARATIONS OF INTEREST Nil.


14. BUSINESS DEFERRED FROM PREVIOUS MEETING Mr Bernie Miller of Main Roads WA informed the CEO that a grid would not be placed back on the highway where it was removed 20kms south of Meekatharra. 100m of wing fencing would be carried out by Yoweragabbie Contracting then invoiced to Main Roads WA. Main Roads WA would install raised (i.e. “Rumble Strip” type) painted lines across the road at either end of the wing fences. Vermin Fence Field Coordinator Mr Ashley Dowden

Updated Council on the progress of works currently being carried out by Yoweragabbie Contracting. Works should be completed by March 2016.

Gum Creek on the west side will be completed by Christmas.

15. REPORTS

14.1 Appointment of Committees

Officer: Chief Executive Officer Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Matter for Consideration To appoint an Audit Committee, a Murchison Vermin Cell Project Steering Committee, and any other committees as Council sees fit. Background Section 5.8 of the Local Government Act 1995 provides that a local government may establish (by absolute majority) committees of 3 or more persons to assist the council and to exercise the powers and discharge the duties of the local government that can be delegated to committees.

Committees can comprise Councillors only, Councillors and employees, Councillors and employees and others, employees and others, employees only, or others only.

At any given time each councillor is entitled to be a member of at least one committee comprising Councillors only or Councillors and employees, and if a council member nominates himself or herself to be a member of such a committee or committees, the local government is to include that council member in the persons appointed to at least one of those committees as the local government decides.

If at a meeting the Council is to make an appointment to a committee that has or could have a council member as a member and the President informs the Council of his or her wish to be a member of the committee, the Council must appoint the Shire President to be a member of the committee.

Similarly, if at a meeting the Council is to make an appointment to a committee that has or will have an employee as a member and the CEO informs the Council of his or her wish —

a) to be a member of the committee; or b) that a representative of the CEO be a member of the committee,


the Council must appoint the CEO or the CEO’s representative, as the case may be, to be a member of the committee. Committees can have powers and authorities of the Council delegated to them (by absolute majority), or they may be advisory only – in which case they will make recommendations to the Council. Committees can be established and disestablished for specific purposes as the need arises, or they may be permanent committees established for the term of the Council with a specific portfolio of matters to deal with. This latter type of committee generally comprises Councillors only and is typically known as a ‘Standing Committee’.

Urban Councils often have an elaborate committee structure with a number of standing committees that deal with most of their business under delegated authority; however, standing committees quite rare among rural and remote local governments.

With the exception of an Audit Committee, the Council is not required by legislation to establish any standing committees.

However, there is a requirement in Division 1A of the Local Government Act that requires every local government to appoint an Audit Committee. Special conditions apply to that Audit Committee, as set out below.

The Council is not required to delegate any powers or authorities to the Audit committee, and in the past the Audit Committee of the Murchison Regional Vermin Council has been advisory only.

In the past two years, the Audit Committee has met very infrequently – generally only to consider the annual compliance audit return, the auditor’s report and the auditor’s management letter. One of the tasks of the audit committee will be to make a recommendation to the Council with regard to the appointment of the auditor. Statutory Environment The main requirements with regard to the appointment of an Audit Committee are set out in section 7.1A of the Local Government Act 1995: (1) A local government is to establish an audit committee of 3 or more persons to

exercise the powers and discharge the duties conferred on it. (2) The members of the audit committee of a local government are to be appointed* by

the local government and at least 3 of the members, and the majority of the members, are to be council members. * Absolute majority required.

(3) A CEO is not to be a member of an audit committee and may not nominate a person to be a member of an audit committee or have a person to represent him or her as a member of an audit committee.

(4) An employee is not to be a member of an audit committee.

Comment The main reason that Councils establish committees (other than for statutory compliance) is for efficiency and division of labour. Rather than every decision having to be examined in minute detail by the whole Council (which would really be a lot of work if the Council was considering all the matters expected of it), the work can be referred off to committees that can do the detailed examination of matters and then report back to the Council. It also allows Councillors with a special interest in a particular field of Council operations to develop their special interests.


Which is not to say that Councils can’t establish committees comprising the whole Council; this is usually done so that the Council can meet in “committee mode” – that is to do the type of detailed consideration of matters that is better performed by committees than in the formal structures of a Council meeting. Typically, a “Committee of the Whole” might be established to enable a committee-style examination of an issue of interest to the whole Council, such as a response to an amalgamation proposal or some similar type of structural reform issue. In the last term of the Murchison Regional Vermin Council, the Council established an Audit Committee comprising the whole Council. And, of course, the Council is free to do so again if it so chooses. Whilst the CEO and other staff are not allowed to be members, it has been an accepted practice that the CEO and the Finance Manager or Accountant attend Audit Committee meetings to provide support and information to the committee. Council must now decide by absolute majority the members of the Audit Committee.

_____________________________________ At its September 2015 meeting, the Council established a steering committee comprising Cr Homewood, Cr O’Brien, Cr (Neil) Grinham, Cr (Bob) Grinham and the Field Officer to finalise the route of the fence required to complete the Murchison Regional Vermin Cell project. The proposal was that this group would drive the remaining route, consulting with the pastoral leaseholders along the way, taking GPS coordinates and reporting back to a meeting of the MRVC to be held this month. This is important work – I am on a mission to produce a better business plan that will secure the funding needed to complete this project, and that work cannot be completed until the work route is finalised. For various reasons, the Committee has not yet completed its task so I must recommend that the Committee be re-established Policy Implications I am unable to find any formal policy of Council regarding the Audit Committee (or any other Council committees). Financial Implications The Audit Committee will attract normal sitting fees. In respect of the Murchison Regional Vermin Cell Steering Committee, the Field Officer has given me a quote for the job, including the use of his car and GPS equipment. The Councillors will be paid a sitting fee per day. There will probably need to be a second car; the Councillor who takes his car as the second vehicle will be reimbursed mileage as per the Salaries and Allowances Tribunal’s determination. The Committee expedition will be funded out of the contributions of the three member shires that have contributed financially to this project. Strategic Implications Nil. Voting Requirements Absolute majority.


COUNCIL RESOLUTION

Moved: Cr Robert Grinham Seconded: Cr Ross Pigdon That: 1. An Audit Committee be established comprising all Councillors. 2. That a Murchison Regional Vermin Cell steering committee be established to

determine the proposed route of the fence required to enclose the cell and to report back the Council, comprising the following members:

The Field Officer as Coordinator Cr Robert Grinham Cr Jason Homewood Cr Les Price Cr Joe O'Brien as nominated by Cr Robert Grinham CARRIED 7/0

14.2 Cash Position Statement - As at 31 October 2015

Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Comment The Cash Position Statement is as stated below.

STATEMENT OF CASH POSITION AS AT 31 OCTOBER 2015

BALANCE OF CASH POSITION AS AT 1 JULY 2015 $ 16,215.61

ADD - OPERATING - Revenue Credit Interest $ 0.80

Waratah Cash Back $ 1,720.00 Precepts $ 72,347.00

Fence Rental $ 2863.87

TOTAL – OPERATING - REVENUE $ 76,931.67

LESS – OPERATING - Expenditure Fence Maintenance -$ 12,413.50

Financial/Audit Services -$ 10,345.62 Secretarial Services -$ 6,600.00 Meeting Expenses -$ 250.00

Communication Expenses -$ 470.00 Insurance -$ 825.00

Bank Fees -$ 23.70

TOTAL – OPERATING – EXPENDITURE -$ 31,058.73

ADD - ATO – BAS - April 2015 to June 2015 $ 1,911.00 ADD - ATO – BAS – Amended – June 2015 $ 20,122.00

ADD - ATO – BAS - July 2015 to September 2015 $ 12,974.00


LESS - CAPITAL - Expenditure Fencing Materials -$ 104,487.45

Fencing Contractor -$ 118,800.00 Field Co-Ordinator -$ 2,145.00

TOTAL – CAPITAL – EXPENDITURE -$ 225,432.45

CASH DEPOSIT Drawdown – Cash Deposit $ 170,000.00

CASH BALANCE AS AT 31 OCTOBER 2015 $ 41,663.10 Consultation Nil. Statutory Environment Nil. Policy Implications Nil. Financial Implications Nil. Strategic Implications Nil. Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Harvey Nichols Seconded: Cr Les Price That the Cash Position Statement as at 31 October 2015 be received. CARRIED 7/0

14.3 Accounts for Payment - 1 September 2015 to 31 October 2015

Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Comment The accounts for payment list for 1 September 2015 to 31 October 2015 are attached for notation. Consultation Nil. Statutory Environment Nil.


Policy Implications Nil. Financial Implications Nil. Strategic Implications Nil. Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Jason Homewood Seconded: Cr Ross Pigdon That payments of accounts for payment list for 1 September 2015 to 31 October 2015 be noted. CARRIED 7/0

ACCOUNTS PAID 1 SEPTEMBER 2015 TO 31 OCTOBER 2015

Date Paid Invoice No Name Particulars Amount $

01/09/2015 Direct CBA Account Service Fee 5.00


04/09/2015 78 CL & MA Bernhardt Fence Maintenance 4,180.00

04/09/2015 223440 Southern Wire Fence Upgrade - Materials 4,613.18

04/09/2015 5387 Shire of Mount Magnet

Reimbursement – Satellite Phone Account

100.00


2015/2016 Secretarial Services

6600.00

18/09/2015 0068 Yoweragabbie Contracting

Fence Upgrade – Additional 13.6km No 2 Vermin Fence

63,800.00




Reimbursement – Satellite Phone Account

130.91

24/10/2015 013536 Anderson Munro & Wyllie

Final Audit – Year Ended 30/06/15

1609.30

24/10/2015 290012531 RSM Bird Cameron Financial Services – Jul’15-Sept’15

3115.34


24/10/2015 227292 Southern Wire Fence Maintenance – Materials

570.02




Reimbursement – Nexus Freight – Fencing Materials

375.88

24/10/2015 511 Murchison Aviation Field Co-Ordinator 2,145.00

24/10/2015 97222404 Landmark Fence Upgrade – Jio Posts 35,640.00

TOTAL $191,333.83


14.4 Debtors - As at 31 October 2015

Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Comment

Outstanding Debtors - As at 31 October 2015 Outstanding Current Fence Rental $ 4,152.11 Annual Subsidy $ 33,655.60

Outstanding Previous Years Fence Rental $ 8,524.08 Recovery Expenses $ 249.29

Total Amount Outstanding $ 46,581.08 Details of outstanding debtors are available to Councillors as a separate document. Statutory Environment Nil. Policy Implications Nil. Financial Implications Nil. Strategic Implications Nil. Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Jason Homewood Seconded: Cr Les Price That the outstanding Debtors Report be received. CARRIED 7/0

14.5 Investment Register - As at 31 October 2015

Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Comment The Investment Register as at 31 October 2015 is attached for notation. Statutory Environment Nil.


Policy Implications Nil.

Financial Implications Nil.

Strategic Implications Nil.

Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Jason Homewood Seconded: Cr Harvey Nichols

That the Investment Register as at 31 October 2015 be noted.

CARRIED 7/0


At Call 1.950% 54,883.98 390.03 66,910.71 32,490.33 )( 89,694.39

At Call 1.950% 392,129.81 2,548.88 204,420.38 )( 190,258.31

TOTAL 447,013.79$ 2,938.91$ 66,910.71$ 236,910.71-$ 279,952.70$

MURCHISON REGIONAL VERMIN COUNCIL

INVESTMENT REGISTER

01 JULY 2015 TO 31 OCTOBER 2015

Commonwealth Bank of Australia - Cash Deposit Account Number 36558508

Maturity Date

Interest Rate

Opening Balance

Interest Earnt to

31.10.2015

Transfers to Investments

Transfers from Investments

Closing Balance 31.10.2015

OPERATING

CAPITAL


14.6 Statement of Financial Activity to 31 October 2015

Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015

Application To review the Statement of Financial Activity to 31 October 2015.

Background The attached Statement of Financial Activity to 31 October 2015 has been prepared by RSM Bird Cameron.

Consultation Mr Travis Bate – RSM Bird Cameron.

Statutory Environment Nil.

Policy Implications Nil.

Financial Implications Nil. Strategic Implications Nil. Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Les Price Seconded: Cr Ross Pigdon That the Statement of Financial Activity to 31 October be adopted. CARRIED 7/0


THE POWER OF BEING UNDERSTOOD

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RSM Australia Pty Ltd ACN 009 321 377 atf Birdanco Practice Trust ABN 65 319 382 479 trading as RSM

Liability limited by a scheme approved under Professional Standards Legislation

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8 St Georges Terrace Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9101

www.rsm.com.au

Compilation Report

To the Council

Murchison Region Vermin Council

Scope We have compiled the accompanying special purpose financial statements. The specific purpose for which the special purpose financial report has been prepared is to provide information relating to the financial performance and financial position of the Shire that satisfies the information needs of the Council and the Local Government Act 1995 and associated regulations. The responsibility of the Murchison Region Vermin Council The Murchison Region Vermin Council (MRVC) is solely responsible for the information contained in the special purpose financial report and have determined that the accounting policies used are consistent and are appropriate to satisfy the requirements of the Council and the Local Government Act 1995 and associated regulations. Our responsibility On the basis of information provided by the MRVC, we have compiled the accompanying special purpose financial statements. Our procedures use accounting expertise to collect, classify and summarise the financial information, which the Management provided, into a financial report. Our procedures do not include any verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed. To the extent permitted by law, we do not accept liability for any loss or damage which any person, other than the MRVC, may suffer arising from negligence on our part. No person should rely on the report without having an audit or review conducted. This report was prepared for the benefit of the Council of the MRVC and the purpose identified above. We do not accept responsibility to any other person for the content of the report. Signed at GERALDTON RSM

Chartered Accountants Date 16 November 2015


of 2

Appendix A: Issues Noted in Preparation of Financial Report We noted the following issues during the preparation of the financial statements which we wish to bring to your attention: Format of Report The format of the Financial Statement is consistent with that used previously with the Council. We accept no responsibility for the Financial Statements compliance or otherwise with the requirements of the Local Government Act 1995 and associated regulations. Fixed Assets, Depreciation and Profit / Loss on Sale of Asset Depreciation expense is brought to account for the MRVC at the 30 June and is not reflected in these financial statements. Receivables greater than 90 days MRVC currently has $8,773.36 outstanding receivables older than 90 days.



FINANCIAL REPORT

For the Period 1 July 2015 to 31 October 2015

Local Government Act 1995

Local Government (Financial Management) Regulations 1996

This report should be read in conjunction with the notes to the accounts


Table of Contents

Income Statement by Nature and Type

Income Statement by Statutory Reporting Program

Statement of Financial Position at 31 October 2015

Note 1 Significant Accounting Policies

MYOB "Profit & Loss Statement" 1 July 2015 to 31 October 2015

MYOB "Balance Sheet" at 31 October 2015

MYOB "GST Detail" Report Year to 31 October 2015

MYOB "Bank Register" Report Year to 31 October 2015


Oct-15 2016 Oct-14

$ Budget $

$

REVENUES FROM ORDINARY ACTIVITIES

Subsidy-Meekatharra Rangelands 32,511 30,596 29,705

Fees and Charges 77,196 72,148 70,047

Interest Earnings 2,940 24,200 11,102

112,648 126,944 110,854

EXPENSES FROM ORDINARY ACTIVITIES

Materials and Contracts (22,929) (43,200) (23,200)

Depreciation - (149,805) -

Insurance Expense (750) (800) -

(23,679) (193,805) (23,200)


Non Operating Grants - 4,800,000 478,847

- 4,800,000 478,847

NET RESULT 88,969 4,733,139 566,501

Opening Funding Surplus(Deficit) 601,253 318,639 678,631

Closing Funding Surplus(Deficit) 481,189 172,028 927,828

Oct-15 2016 Oct-14

$ Budget $

$


Economic Services 112,648 126,944 110,854112,648 126,944 110,854

EXPENSES FROM ORDINARY ACTIVITIES

EXCLUDING BORROWING COSTS EXPENSE

Governance - (24,800) (682)

Economic Services (23,679) (169,005) (22,519)

(23,679) (193,805) (23,200)


Non Operating Grants - 4,800,000 478,847

- 4,800,000 478,847

NET RESULT 88,969 4,733,139 566,501

Opening Funding Surplus(Deficit) 601,253 318,639 678,631

Closing Funding Surplus(Deficit) 481,189 172,028 927,828

This statement is to be read in conjunction with the accompanying notes.

By Program


INCOME STATEMENT


INCOME STATEMENT

By Nature and Type




NOTE Oct-15 Oct-14

$ $

CURRENT ASSETS

Cash and Cash Equivalents 321,616 905,086

Trade and Other Receivables 41,204 4,326

Inventories 123,824 10,060

TOTAL CURRENT ASSETS 486,644 919,472

NON-CURRENT ASSETS

Infrastructure 3,433,727 1,918,386

TOTAL NON-CURRENT ASSETS 3,433,727 1,918,386

TOTAL ASSETS 3,920,371 2,837,859

CURRENT LIABILITIES

Trade and Other Payables 5,455 81,112

TOTAL CURRENT LIABILITIES 5,455 81,112

TOTAL LIABILITIES 5,455 81,112

NET ASSETS 3,914,917 2,756,747

EQUITY

Equity 3,914,917 2,756,747TOTAL EQUITY 3,914,917 2,756,747


STATEMENT OF FINANCIAL POSITION



1. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies which have been adopted in the preparation of this financial

report are:

(a) Basis of Preparation

The report has also been prepared on the accrual basis and is based on historical costs, modified, where

applicable, by the measurement at fair value of the selected non-current assets, financial assets

and liabilities.

Critical Accounting Estimates

(b) The Local Government Reporting Entity

All Funds through which the Council 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.

(c) Goods and Services Tax

In accordance with recommended practice, revenues, expenses and assets capitalised are stated net

of any GST recoverable. Receivables and payables in the statement of financial position are stated

inclusive of applicable GST.

(d) Cash and Cash Equivalents

(e) Trade and Other Receivables

Bank overdrafts are shown as short term borrowings in current liabilities on the

statement of financial position.

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.

Cash and cash equivalents include cash on hand, cash at bank, deposits held at

call with banks, other short term highly liquid investments with original maturities

of three months or less that are readily convertible to known amounts of cash

and which are subject to an insignificant risk of changes in value and bank

overdrafts.


NOTES TO AND FORMING PART OF THE FINANCIAL REPORT


The financial report is a general purpose financial statement which has 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.

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.


1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(f) Inventories

General

Land Held for Resale

Land purchased for development and/or resale is valued at the lower of cost and net realisable

value. Cost includes the cost of acquisition, development, borrowing costs and holding costs

until Finance costs and holding charges incurred after development is completed are expensed.

Revenue arising from the sale of property is recognised in the statement of comprehensive income

as at the time of signing an unconditional contract of sale.

Land held for resale is classified as current except where it is held as non-current based on Council's intention

to release for sale.

(g) Fixed Assets

Initial Recognition

Revaluation

Certain asset classes may be revalued on a regular basis such that the carrying values are not materially

different from fair value. For infrastructure and other asset classes where no active market exists, fair

value is determined to be the current replacement cost of an asset less, where applicable, accumulated

depreciation calculated on the basis of such cost to reflect the already consumed or expired future

economic benefits of the asset.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less any

subsequent accumulated depreciation and accumulated impairment losses, are to be revalued with

sufficient regularity to ensure the carrying amount does not differ materially from that determined using

fair value at reporting date.




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.

Each class of fixed assets is carried at cost or fair value as indicated less, where

applicable, any accumulated depreciation or impairment losses.

All assets are initially recognised at cost. 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 Council includes the cost of all materials used in construction, direct

labour on the project and an appropriate proportion of variable and fixed

overhead.

Increases in the carrying amount arising on revaluation of assets are credited to

a revaluation surplus in equity. Decreases that offset previous increases in the

same asset are charged against fair value reserves directly in equity; all other

decreases are charged to the statement of comprehensive income.

Any accumulated depreciation at the date of revaluation is eliminated against the

gross carrying amount of the asset and the net amount is restated to the

revalued amount of the asset.



(g) Fixed Assets (Continued)

Depreciation of Non-Current Assets (Continued)

Depreciation is recognised on a straight-line basis, using rates which are reviewed each reporting

period. Major depreciation periods are:

Fencing 50 years

Plant and Equipment 10 years

Capitalisation Threshold

(h) Financial Instruments

Initial Recognition and Measurement

Classification and Subsequent Measurement

techniques are adopted.



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. When revalued assets are sold, amounts included in

the revaluation surplus relating to that asset are transferred to retained earnings.

Expenditure on items of equipment under $2,000 is not capitalised. Rather, it is

recorded on an asset inventory listing.

Financial assets and financial liabilities are recognised when the Council

becomes a party to the contractual provisions to the instrument. For financial

assets, this is equivalent to the date that the Council 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.

Financial instruments are subsequently measured at fair value, amortised cost

using the effective interest rate method or at cost.

Fair value represents the amount for which an asset could be exchanged or a

liability settled, between knowledgeable, willing parties. Where available, quoted

prices in an active market are used to determine fair value. In other




(h) Financial Instruments (Continued)

Classification and Subsequent Measurement (Continued)

(i) Financial assets at fair value through profit and loss

(ii) Loans and receivables

(iii) Held-to-maturity investments

If the Council were to sell other than an insignificant amount of held-to-maturity financial assets,

the whole category would be tainted and reclassified as available-for-sale.

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;

(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; and

(d) less any reduction for impairment.

The effective interest rate method is used to allocate interest income or interest expense over the

relevant period and is equivalent to the rate that exactly 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.

Financial assets at fair value through profit or loss are financial assets held for trading. A financial

asset is classified in this category if acquired principally for the purpose of selling in the short term.

Derivatives are classified as held for trading unless they are designated as hedges. Assets in this

category are classified as current assets.

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.

Loans and receivables are included in current assets, except for those which are not expected to

mature within 12 months after the end of the reporting period (classified as non-current assets).

Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or

determinable payments and fixed maturities that the Council’s management has the positive

intention and ability to hold to maturity.

Held-to-maturity financial assets are included in non-current assets, except for those which are

expected to mature within 12 months after the end of the reporting period (classified as current

assets).






(h) Financial Instruments (Continued)

Classification and Subsequent Measurement (Continued)

(iv) Available-for-sale financial assets

(v) Financial liabilities

Impairment

(i) Estimation of Fair Value

The nominal value less estimated credit adjustments of trade receivables and payables are

assumed to approximate their fair values. The fair value of financial liabilities for disclosure

purposes is estimated by discounting the future contractual cash flows at the current market

interest rate that is available to the Council for similar financial instruments.




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.

Available-for-sale financial assets are included in non-current assets, except for those which are

expected to mature within 12 months after the end of the reporting period (classified as current

assets).

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at

amortised cost.

At the end of each reporting period, the Council assesses whether there is objective evidence that

a financial instrument has been impaired. In the case of available-for-sale financial instruments, a

prolonged decline in the value of the instrument is considered to determine whether impairment

has arisen. Impairment losses are recognised in the statement of comprehensive income.

The fair value of financial assets and financial liabilities must be estimated for recognition and

measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets is based on quoted market prices

at the reporting date.

The fair value of financial instruments that are not traded in an active market is determined using

valuation techniques. The Council uses a variety of methods and makes assumptions that are

based on market conditions existing at each reporting date. These include the use of recent arm’s

length transactions, reference to other instruments that are substantially the same, discounted

cash flow analysis, and option pricing models making maximum use of market inputs and relying

as little as possible on entity-specific inputs.

Quoted market prices or dealer quotes for similar instruments are used for long-term debt

instruments held. Other techniques, such as estimated discounted cash flows, are used to

determine fair value for the remaining financial instruments.



(j) Impairment

In accordance with Australian Accounting Standards the Council'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 estimate of the recoverable amount of the asset is madein accordance with AASB 136 'Impairment of Assets' and appropriate adjustments made.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit

exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive

income.

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.

(k) Trade and Other Payables

Trade and other payables represent liabilities for goods and services provided to the Council

prior to the end of the financial year that are unpaid and arise when the Council becomes

obliged to make future payments in respect of the purchase of these goods and services.

The amounts are unsecured and are usually paid within 30 days of recognition.

(l) Employee Benefits

The provisions for employee benefits relates to amounts expected to be paid for long service

leave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits)

The provision for employees’ benefits to wages, salaries, annual leave and long service leave

expected to be settled within 12 months represents the amount the Council has a present

obligation to pay resulting from employees services provided to reporting date. The provision has

been calculated at nominal amounts based on remuneration rates the Council expects to pay

and includes related on-costs.

(ii) Long Service Leave (Long-term Benefits)

The liability for long service leave is recognised in the provision for employee benefits and

measured as the present value of expected future payments to be made in respect of services

provided by employees up to the reporting date using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee

departures and periods of service. Expected future payments are discounted using market

yields at the reporting date on national government bonds with terms to maturity and currency

that match as closely as possible, the estimated future cash outflows. Where the Council does not have the unconditional right to defer settlement beyond 12 months, the liability is

recognised as a current liability.

(m) 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.






(n) Provisions

Provisions are recognised when:

a) the Council has a present legal or constructive obligation as a result of past events;

b) for which it is probable that an outflow of economic benefits will result to settle the

obligation; and

c) that outflow can be reliably measured.

Provisions are not recognised for future operating losses.

(o) Joint Venture

The Council does not have any interest in a joint venture.

(p) 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 operation for the current reporting period.

(q) Superannuation

(r) Current and Non-Current Classification

(s) Rounding Off Figures

All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the

nearest dollar.

(t) Comparative Figures

Where required, comparative figures have been adjusted to conform with changes in presentation

for the current financial year.

(u) 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.

Provisions are measured using the best estimate of the amounts required to settle the obligation at

the end of the reporting period.

The Council contributes to a number of superannuation funds on behalf of employees.

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 Council’s operational

cycle. In the case of liabilities where the Council does not have the unconditional right to defer

settlement beyond 12 months, such as vested long service leave, the liability is classified as

current even if not expected to be settled within the next 12 months. 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 resale where it is held as non-current based on Council’s intentions to release for sale.







(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 Regional Council, 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 Regional Council, 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 Regional Council

(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 Regional Council has with those third parties it has

with. It may or may not be significant.


For the Period 1 July 2014 to 30 June 2015

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 Regional Council.

Page 12




(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)


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 Regional Council.

(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 Regional Council'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 Regional Council 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 13






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 14






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 Regional Council 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.

These new and revised Standards were:

Most of the Standards adopted had a minimal effect on the accounting and reporting practices of the Regional Council as they did not have a significant impact on the

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 Regional Council adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, became mandatory

and which were applicable to its operations.

Page 15


14.7 Fence Maintenance

Officer: Chief Executive Officer Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 October 2015 Application To note maintenance work carried out on the No. 1 Vermin Fence by Council’s fencing contractor Mr Liam Fitzpatrick. Maintenance Report The attached report details work carried out for the period 13 October 2015 to 19 October 2015 by the contractor at a rate of $800 per day. Policy Implications Nil. Financial Implications The cost of this works is provided for in the 2015/2016 maintenance budget. Strategic Implications Nil. Voting Requirements Simple Majority.

COUNCIL RESOLUTION

Moved: Cr Jason Homewood Seconded: Cr Robert Grinham That Council notes the maintenance work carried out under contract on the No 1 Vermin Fence over the period 13 October 2015 to 19 October 2015. CARRIED 7/0 In response to a question, the Field Officer said that Mr Fitzpatrick and his associate were doing very good work – very thorough. In due course, he would like to see the pace increased. Member commented that they would like to see better reports; specifically, the report should have a name on it (the report presented was anonymous). It was requested that Mr Fitzpatrick’s future reports include his trading name and ABN.


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14.8 Discussion of route of fence required to complete Vermin Cell

Officer: Chief Executive Officer Amended By: Nil Disclosure of Interest: Nil Meeting Date: 23 November 2015 Matter for Consideration To give guidance to the Steering Committee concerning the route for the fence required to complete the proposed Murchison Regional Vermin Cell. Background At the MRVC meeting held on held on 7

th September 2015, I updated the Council on work

being undertaken to complete a satisfactory business case to secure funding to complete the Murchison Regional Vermin Cell project. To recap, that work includes resolving the following issues:

Ownership of and responsibility for the fences (MRVC)

Access to the fences for ongoing maintenance (Easements)

Coordination and enforcement of extermination activities within the completed cell (MRBA)

A robust model for funding the ongoing outgoings on the fences, which doesn’t rely on a “voluntary arrangement”

A robust cost/benefit analysis and economic impact statement Of course, there are a few other issues to be addressed, including but not limited to:

Aligning the project with State Planning Strategies

Aligning the project with the Southern Rangelands Revitalisation Project (under development)

Aligning the project with the State Wild Dog Strategy (under development); and

Aligning the project with Royalties for Regions and federal National Stronger Regions Fund guidelines.

This work is underway, and will be completed by March 2016 (subject to the proviso below), which will be in time to be funded prior to the state budget cycle and either the state of federal governments going into pre-election caretaker mode. I have discussed this timeframe with the Chairperson of the MWDC Hon. Murray Criddle who says that that timeline will work fine. However, as I advised the September MRVC meeting, I can attend to all the issues above but I can’t really determine the final route of the fence. I need the elected members to do that, and I need it to be done sooner rather than later or this issue risks being the matter that holds up the delivery of the business plan. Consequently, the MRVC spent some time discussing the proposed route over a large map, and appointed a Steering Committee to undertake a field trip to obtain GPS coordinates of the final route and report back by 6

th November.

The Steering Committee has not yet undertaken the field trip for various reasons, one of which is that it is seeking further direction on where it should be going.


Comment The minutes of the meeting of 7

th September record the discussions as follows:

“Moved: Cr Roger Le Maitre Seconded: Cr Joe O'Brien That a Vermin Cell Project Steering Committee be formed comprising of Cr Jason Homewood, Cr Neil Grinham, Cr Bob Grinham, Cr Joe O'Brien and Vermin Fence Field Coordinator Ashley Dowden, to report back to Council by the Audit Committee Meeting with a proposed route for the remaining sections of the proposed Vermin Cell fencing. CARRIED 7/0 It was generally agreed in discussion that a minimum of three members of the Vermin Cell Project Steering Committee should participate in an excursion along the proposed route (s) to check the topography etc likely to result in:

Optimal route in terms of effectiveness as a barrier to wild dogs; and

Minimisation of ongoing repair and maintenance costs in the future. It is intended that the Steering Committee will have identified the route (and had discussions with the affected landholders) by the November MRVC meeting, so that we can start quantifying materials and other contracts. It will not be possible to finalise a new business plan that will meet all the requirements of WA Treasury, Department of Regional Development, and Minister Redman and other potential funders until the route has been finally determined.” I now regret (and apologise) that the discussion was not minuted in more detail. My recollection of the discussion was that two significant principles had been agreed to:

1. That the fence would not necessarily follow cadastral boundaries, as had previously been contemplated. There really is no need, because access to the fences can be obtained by way of easement. This principle is captured by the two dot-points above. The point is that the fence needs to go where it will be most effective, and to avoid (where possible) waterways that will cause ongoing maintenance issues.

2. The fence must not go outside the MRVC area. This is because the MRVC has no extra-territorial powers to raise revenue or enforce its local laws, and doing so will undermine the funding model and the business case.

I believe that it was recognised at the 7

th September meeting that this second point was a

significant departure from the original vermin cell proposal, because it meant that the cell could not include the pastoral stations in the Shire of Murchison, because the Shire of Murchison is not a member of the MRVC. It is important to understand why going outside the MRVC will undermine the business case: One of the significant weaknesses in the previous business case that was identified by the Attorney-General’s Office and the State Treasury was that the earlier proposed funding model seemed like a “voluntary arrangement”, and they will not fund anything that depends on a voluntary arrangement. They want the funding model (for the ongoing outgoings) to have the force of legislation. Dominic Carbone and Associates is currently working out the details of the model which is generally as follows:

The MRVC as owner of the fences will be responsible for the future outgoings on the fence.

The MRVC has the right to levy precepts on its member Councils.

The MRVC will increase the precepts levied on its participating members to fund the future outgoings.


The participating member local governments can use their differential rating powers (or local area rates) to raise revenue from the stations that are protected by the cell to pay the increased MRVC precepts.

So the first problem for the business case if the stations of the Shire of Murchison is that the funding model will not work, because the Shire of Murchison is not a member of the MRVC and the MRVC consequently has no power to levy precepts extra-territorially. Furthermore, my research in the files of the Department of Local Government has revealed about 50 years of correspondence from the Shire of Murchison objecting to any proposals from the MRVC to raise revenue from its ratepayers. Futhermore, the business plan must also demonstrate who will coordinate and enforce extermination activities within the completed cell. That is currently proposed to be the MRBA. But I understand that the stations of the Shire of Murchison are outside the MRBA area – that they are part of another biosecurity association based in Carnarvon. So that could well be a second kiss of death for our business case. The contrary view It has been suggested that the pastoralists from the Shire of Murchison who are expecting to be within the cell will be very disappointed to learn that they now need to be excluded, which is quite understandable. Furthermore it has been suggested that they are very well-connected politically, and will be on the phone to the Minister trying to undermine the project. That is a potential problem, but unless we get the business case right, the project won’t be going ahead anyway. And political action will be no substitute for a good business case, or otherwise they should have used their political connections to get the project funded before now. To be honest, the past political actions around this project have probably been more counter-productive than helpful. And it is the Minister who has asked us to produce a robust business case, so I doubt he is going to change his mind the first time he gets a phone call from a pastoralist from the Shire of Murchison. However, I’m sure the affected pastoralists will genuinely be very disappointed, and we need to manage their feelings as best as possible. Opportunities for the stations in the Shire of Murchison None of the above is to suggest that those stations that were previously to be included in the cell should not be given opportunities to benefit from the cell. It’s just that they need to fit within the funding model and the business case. They have three opportunities to do so:

1. After 52 years, the Shire of Murchison could relent on its earlier decision and apply to join the MRVC. That would have the effect of bringing those stations within our territory, and within the funding model. However, that may realistically be a hard idea to sell to their Council, to bring the whole Shire into the MRVC for the benefit of a few stations in the Shire’s south-east corner.

2. The Stations could apply to the Local Government Advisory Board for a boundary change so that they come into the Shire of Yalgoo (and therefore into the MRVC territory). This would have the same effect as above, but without affecting the whole Shire.

3. The affected stations could get their own vermin cell, and use our fence as one of the boundaries


Statutory Environment Local Government Act 1995 Policy Implications Nil. I’m unable to find any policy on this matter. Records show that the Shire of Murchison was invited to join the MRVC back in 1963 when it was formed (but refused to do so), and that they were subsequently invited to do so on at least one occasion (but again refused). Presumably we would still be open to an application to join the MRVC, and would consider it on its merits. Financial Implications It is important to get this decision right, or we are unlikely to get the funding required to complete this project. Strategic Implications It is important to get this decision right, or we are unlikely to get the funding required to complete this project. Voting Requirements Simple Majority In discussion it was generally agreed that:

It would be good to include Mt Wittenoom, Murgoo, Twin Peaks and Yuin Stations within the proposed vermin cell if there was some way of raising revenue that will pass muster with the Attorney-Generals Department and the other agencies; but

If including them within the cell will destroy the business case, they will need to be left out.

Consultation with the landowner needs to take place regarding the inclusion (or not) of all or part of Madonga Station.

The President will consult with Sino Steel.

The CEO should write to the Shire of Murchison explaining the situation, and indicating that the MRVC would be willing to entertain an application from that Shire to join

The CEO should also write to the pastoralists of the Mt Wittenoom, Murgoo, Twin Peaks and Yuin Stations so that they are also aware of the situation, and can lobby their Council if they choose to do so.

The MRVC should meet again in the second week of December to consider any response from the Shire of Murchison, and give guidance to the Steering Committee as to the preferred inclusions and exclusions of pastoral properties in relation to the cell.

16. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN Nil.

17. NOTICE OF MOTIONS FOR THE NEXT MEETING Although there was no formal notice of motion, it was generally agreed that the next meeting must make a final decision on the route for the final section of fence required to enclose the Vermin Cell.

18. CONFIDENTIAL BUSINESS Nil.


19. LATE AGENDA ITEMS Nil.

20. ELECTED MEMBER MATTERS Cr Neil Grinham

Suggested assistance be sought for the CEO due to the extra work load undertaken with the Vermin Cell fence project.

Sought clarification on the wing fence against the grid being installed on the Great Northern Highway.

21. NEXT MEETING To ensure that all members of the MRVC would be present at the next meeting, it was decided to reschedule the meeting to Wednesday, 9 December 2015

22. CLOSURE OF MEETING

There being no further business, the President closed the meeting at 12:12pm.

23. CERTIFICATION BY CHAIRMAN

Confirmed this day 9 December 2015


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