northern midlands annual report 2018/2019 · midlands. your passion and enthusiasm for the...
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NORTHERN MIDLANDS ANNUAL REPORT 2018/2019
Front cover, clockwise:� Newmulti-functionfacilityatCampbellTownWarMemorialOval,NorthernMidlandsrurallandscape,NewentrancetotheupgradedLongfordRecreationGroundmulti-functionfacility,HerExcellencytheGovernor’svisittoAdam’sDistilleryatPerth,NewtownentrancesignageconstructedatConara,PerthLinksRoad—treeplantingcorridor
� AnnualCouncillorBusTour,meetingwiththeRossLocalDistrictCommittee
� FloodMapatLongford’sVictoriaSquare � ToomsLakeRoadBridge � TourofTasmaniaCyclingTour � HaywardslocatedatTRANSlink—constructionofwindturbinecomponents
� TheGranary—RichmondHill,Cressy
CONTENTSVISION 2
VALUES 2
MISSION 2
THE ANNUAL REPORT 3
PROFILE 3
MESSAGE FROM THE MAYOR 4
GENERAL MANAGER’S MESSAGE 6
MAJOR EVENT 9
OUR COUNCIL, PEOPLE & ORGANISATION 11Council facts in brief 11Facilities maintained 11Our staff 11
ORGANISATIONAL STRUCTURE 12
ROLE OF COUNCILCOUNCIL MEETINGS 14
ELECTED MEMBERS OF COUNCIL 16Mayor Mary Knowles OAM 16Deputy Mayor Richard Goss 16Councillor Dick Adams OAM 16Councillor Matthew Brooks 16Councillor Andrew Calvert 16Councillor Jan Davis 16Councillor Ian Goninon 17Councillor Janet Lambert 17Councillor Michael Polley AM 17
COUNCIL’S EXECUTIVE COMMITTEE 17
MEMBERS SERVING ON DISTRICT COMMITTEES 18
MAJOR STRATEGIC ISSUESINTRODUCTION 20
ECONOMIC DEVELOPMENT 20
SUSTAINABLE DEVELOPMENT 20
COMMUNITY WELL-BEING 21
MAINTAINING CORE FUNCTIONS OF COUNCIL 22
FUTURE FUNDING 22
ANNUAL REVIEW OF COUNCIL PROGRAMSGOVERNANCE 24
STRATEGIC PROJECTS 24GOVERNANCE 25 PEOPLE AND CULTURE / HUMAN RESOURCES 28EMERGENCY MANAGEMENT 30 COMMUNICATION 30 YOUTH SERVICES 33 ECONOMIC DEVELOPMENT 34
COMMUNITY & DEVELOPMENT 36STRATEGIC PROJECTS 36 EVENT MANAGEMENT & TOURISM PROMOTION 40RECREATION 42 ANIMAL CONTROL 44ENVIRONMENTAL HEALTH 45 LAND USE, URBAN DESIGN & PLANNING 46 BUILDING SERVICES 47 COMPLIANCE 48 COMMITTEES OF MANAGEMENT 49
CORPORATE SERVICES 50STRATEGIC PROJECTS 50 FINANCIAL MANAGEMENT 51INFORMATION MANAGEMENT 54EARLY CHILDHOOD SERVICES 55 WORK HEALTH & SAFETY 56 CEMETERIES 56
WORKS & INFRASTRUCTURE 57STRATEGIC PROJECTS 57ROADS 58STORMWATER 60 PLANT 60WASTE MANAGEMENT 61BRIDGES 61COMMUNITY AMENITIES 62
MAJOR PROJECTS & WORKS MAJOR PROJECTS 64
CAPITAL WOKRS PROGRAMME 2018–2019 69ROAD INFRASTRUCTURE 69BRIDGES 69URBAN STORMWATER / DRAINAGE 69RECREATION, BUILDING & COMMUNITY 70
REPORTING ON LEGISLATIVE REQUIREMENTSPUBLIC TENDERS 72
ATTENDANCE AT COUNCIL AND COMMITTEE MEETINGS BY COUNCILLORS 74
ELECTED MEMBER ALLOWANCES AND EXPENSES 74
REMUNERATION STATEMENT 74
GRANTS & BENEFITS 74
DONATION OF LAND 74
PUBLIC INTEREST DISCLOSURES STATEMENT 74
ENVIRONMENTAL HEALTH STATEMENT 75
RIGHT TO INFORMATION 75
CODE OF CONDUCT COMPLAINTS 76
CUSTOMER REQUESTS/COMPLAINTS RECEIVED 76
UNDERSTANDING THE FINANCIAL REPORTWHAT ARE THE FINANCIAL STATEMENTS? 78
THE FINANCIAL STATEMENTS 79The Statement of Comprehensive Income 79Statement of Financial Position 79Statement of Changes in Equity 81Statement of Cash Flows 81Notes to the Accounts 81Certification 81Auditor General’s Report 81
Northern Midlands Council | Annual Report 2018/2019 1
HonestyTreat all with honesty, respect and trust.
IntegrityListen, learn and proactively deliver Council’s vision.
InnovationExplore, expand and adapt to achieve a shared vision.
PrideServe community with pride and energy.
Northern Midlands is an enviable place to live, work and play. Connected communities enjoy safe, secure lives in beautiful historical towns and villages. Our clean, green agricultural products are globally valued. Local business and industry is strongly innovative and sustainable.
Lead and Progress
LeadershipServe with honesty, integrity, innovation and pride.Counciliscommittedtostrongadvocacyandcommunitycollaboration.Livingresponsiblywithinourmeans,throughtransparentfinancialplanningandgovernance.Staffcultureespousesintegrity,honestyandpride.
Progression Nurture and support economic health and wealth.Economic health and wealth — grow and prosper. Ourinfrastructuregrowthbuildscapacityandeconomicsustainability.Wesupportdiverse,innovative,independentbusinessandindustry.Wethrivewithstrongcollaborativeregionalpartnerships.
People and Place
PeopleBuild a vibrant society that respects the past.Culture and society – a vibrant future that respects the past.Diversetownsandvillagesservicearural-basedindustry.Connectivitychallengesareinnovativelymanagedtounitedisparatecommunities.Equitabledeliveryofqualityassets,programsandservicessupportssustainability.
PlaceNurture our heritage environment.Wecherishthehistoricalheritageofourcultureandallitspeople.Itisfirmlyembeddedinplanningforthefuture—anenviableplacetolive,workandplay.Weprotectourenvironmentandworkwithbusinessandindustrytoprotectinherentvalues.
VISION MISSION
VALUES
Municipal Goals
� Bold leadership guides innovation and growth
� Economically sound and flexible management
� Sustainable progress creates a vibrant future
� We strategically plan and deliver infrastructure
� Our culture respects the past in building the future
� Our historical landscapes are cherished and protected
� Connected communities are strong and safe
� The municipality is diverse and innovative
� Free2BGirlsProgram—ArtExhibition,Longford
2 Northern Midlands Council | Annual Report 2018/2019
Poatina
Cressy
LongfordPerth Evandale
Ben Lomond National Park
Avoca
Campbell Town
RossKalangadoo
Conara
Epping Forest
Devon Hills Western Junction
Nile
Bishopsbourne
Rossarden
Royal George
The Annual Report to the community concludes the annual corporate planning and reporting cycle of Council.AsaCouncilwehaveastatutorydutytoannuallyreportonhowwellwehaveperformedasanorganisation.TheAnnualReportisCouncil’sreportcardandprovidesCouncilwiththeopportunitytoformallyinformthecommunityoftheachievementsofCounciloverthepastyearandhowthemoniesraisedviarates,charges,feesandfromgrantsreceivedhavebeenexpended.
ItisspecificallyrequiredbytheLocal Government Act 1993thatCouncilreporton:• ThecontextinwhichCouncilworked• Anorganisationaloverview• Council’soperations,ourachievements• Thekeyactivitiesandprioritiesidentifiedinthebudget
• Asetofauditedstandard,financialandperformancestatements.
• EachyearCouncil,inconsultationwiththecommunity,preparesanAnnualBudgetwithinthecontextoftheactionsidentifiedintheStrategicPlan2017-2027.
The Northern Midlands Council was created on the 2nd April 1993 from the merger of the former Municipalities of Longford, Evandale, Campbell Town and Ross, together with the towns of Rossarden, Avoca and Royal George from the Fingal municipality.Themunicipalareacoversanareaof5,130 squarekilometres,extendingfromLiffeyBluffinthewesttoMountStJohnintheeast(150kms)andfromRelbiainthenorthtoToomsLakeinthesouth(95kms).
NorthernMidlandsisoneofthelargestandmostdiversemunicipalareasinTasmania.Itrangesfrommountainouscountryonitseasternandwesternboundariestoextensivegrazinglandsrenownedforfinewoolproduction,therichagriculturalriverflatsoftheEsk,LakeandMacquarieRivers;historictownsandvillages,andfromsmallbusinessestomulti-milliondollarenterprises.Manyofthetownsandvillageshavedistinctiveheritagequalitieswhichmakethemattractiveplacestolive.
The2016censusrecordedthepopulationoftheNorthernMidlandsat12,822.Thiswas2.51%oftheestimatedStatepopulationthattotalled509,965.
TheABSprojectedapopulationof13,300intheNorthernMidlandsregionatJune2018.
THE ANNUAL REPORT PROFILE
Northern Midlands Council | Annual Report 2018/2019 3
Firstly,Iwouldliketoacknowledgeouroutgoingcouncillors,MayorDavidDownieandLeisaGordonfortheirhardworkanddedicationtotheNorthernMidlands.Yourpassionandenthusiasmforthemunicipalareaandthewell-beingofthecommunityhasnotgoneunnoticed.
2018/2019 has been another exciting and big year for our Northern Midlands community. Duringthisperiod,Councilundertooktwoofourbiggestprojectstodate,theLongfordRecreationGroundandCampbellTownWarMemorialOvalPrecinctredevelopmentprojects.Bothoftheseprojectspresentedtheirownchallengesbut,withthetenacityoftheworkforceandmanagement,andthesupportofCouncillorsweworkedasateamtoachieveoutstandingresults.
TheLongfordRecreationGroundRedevelopmentwasaparticularlyexcitingproject,asitisthefirstmajorprojectthatourWorksDepartmentteamhasundertakenassoleprojectmanagersandworkers.Sub-contractorswereengagedwhenrequiredand,wherepossible,wetriedtouseNorthernMidlandsbasedbusinessesandsub-contractorsexclusively.TheredevelopedfacilityhasbeenactivelyusedsinceitscompletioninJune2019andhasreceivedhighpraisefromusergroupsandcommunitymembers.
TheCampbellTownWarMemorialOvalPrecinctRedevelopmentprojectincludedtheconstructionofanewmulti-purposefacility,providingconnectivitywiththeswimmingpoolandnewlyconstructedmulti-purposecourts,upgradestothecenotaphandsurrounds,aswellasthedemolitionofthegrandstand.
TheupgradedfacilitiesatCampbellTownandLongfordnowfeatureinclusivechangeroomswithupdated,upgradedamenitiestogetherwithmeetingroomsandfunctionfacilitieswhichareavailabletohire.
AnotherhighlightofmyfirstyearasMayorwastheGovernor’svisitinNovember2018.HerExcellencyProfessortheHonourableKateWarnerACandMrRichardWarnerspentthedayexploringwhatwehavetoofferintheNorthernMidlands.Itwasadelighttoshowcaseourbeautiful,productiveregionandtheinnovationanddiversitywhichisrepresentativeofourNorthernMidlandscommunity.
Ithasbeenanabsolutepleasuretosupporttheamazingvarietyofcommunityeventsandfestivalsthroughoutthepastyear,andIacknowledgeallthelocalvolunteerswhogivetheirtimetoenablethesetohappen.Theseeventskeepouruniquetownsvibrantandplacespeoplewanttovisit.
IwouldliketotakethisopportunitytoacknowledgeandthankmyfellowCouncillors,ManagementandStafffortheircommitmentandongoingsupportthroughoutthepastyeartoenableandallowtheNorthernMidlandstofurthergrowanddevelop.
Councilhasanumberofprojectsplannedandisexcitedtoseethecommencementofthosethatarealreadyfunded,whilstcontinuingtoactivelylobbyforandseekfundingforthoselong-termprojectswhicharenotyetfunded.IlookforwardtotherealisationoftheseprojectsasCouncilworkstowardsimprovingitsassetstothebenefitofourstrong,vibrantNorthernMidlandscommunity.
Mary Knowles OAMMAYOR
MESSAGE FROM THE MAYOR
4 Northern Midlands Council | Annual Report 2018/2019
� FootballmatchundernewlightsatMorvenPark—SenatorDougCameron,MayorKnowlesandBrianMitchellMP
� GovernorWarner’svisit—civicreceptionatCampbellTown� WoolmersBridgeopening—SenatorWendyAskew,
SenatorClaireChandlerandMayorMaryKnowles
Northern Midlands Council | Annual Report 2018/2019 5
The 2018/2019 year has been a memorable year for the Northern Midlands municipal area. Our population and investment continues to grow adding to our prosperity.Asthetierofgovernmentclosesttoourcommunity,Councilcontinuestolaythefoundationsforprosperityandensuringthatourcommunitiesareinvitingplacestolive.
NorthernMidlandsCouncilasalocalgovernmentauthority,playsacrucialroleindeliveringservicestoourlocalcommunityandensuringlocalprioritiesareaddressed.
Wedelivermanykeyservicesthatinclude:
• LocalRoads• RecyclingandWasteManagement• RecreationandSport• PlanningFunctions• PublicHealthInspections• CommunityHalls• CommunityServices,e.g.childcare,immunisations,youthandseniorsservices
• CommunityEvents• EconomicDevelopmentandTourism• ConservationandEnergyEfficiencyInitiatives
GENERAL MANAGER’S MESSAGE
TheprioritiesthatImentionabove,includethedeliveryofmanykeyinfrastructureprojects,suchas:thenewmulti-functionfacilitiesatCampbellTownWarMemorialOvalandLongfordRecreationGroundPrecinct.
With2019beingafederalelectionyear,theNorthernMidlandsCouncil,prepareditsPriorityProject2019documentoutlininganumberofkeypriorities.WesuccessfullyreceivedcommitmentsfromincumbentSenatorSteveMartinonbehalfoftheCoalitionamountingto$7Mfortheimplementationof:
• $4MfortheLongfordUrbanDesignProject• $2.6MforanewPerthEarlyLearningCentre• $400,000forimprovementstotheCressySwimmingPool
• $50,000toredeveloptheplaygroundatAvoca.
CouncilofficersarecurrentlycompletingFederalGovernmentapplicationsandcollatingsupportingdocumentationforthisfunding.
In2019/2020Councilwillcontinuetoinvestincommunityinfrastructure,particularlysportingamenities,withanemphasisonchangeroomfacilitiestoimproveaccessibilityforfemaleparticipants.ProjectsincludetheprovisionofnewchangeroomsforEvandale’sMorvenParkRecreationGroundandCressyRecreationGround,estimatedtotalexpenditureof$1.8M.
During2019Councilhascontinuedtoexpanditsstreetplantingprogram,notwithstandingCouncilundertakings,manyinthecommunitybelievewearenotdoingenoughinthisarea.Subsequently,Councilisexploringoptionsfortallstandtreesforplanting,inotherwordsgrowingadvancedtreespriortoactualplantingtime.
TheplantingoftreesinthemedianstripofSmithStreet,Longfordisprovidingsignificantenvironmental,andaestheticimprovements,aswellasservingasatrafficcalmingmeasure,improvingsafety.
OverthepastyearsCouncilhasbeenlayingthefoundationforbecominganEmployerofChoice.During2018/2019,CouncilsubmittedtheirfirsteverapplicationfortheEmployerofChoiceAward.TheprogramiswidelyregardedasrecognisingTasmania’sbestpractitionersincreatingaworkculturethatattracts,retainsandgrowsthebestpeople,byactivelypromotingandcateringforapositiveworklifebalance.On28June2019,NorthernMidlandsCouncilwasinductedintotheEmployerofChoiceHonourRoll,andawardedtheEmployerofChoiceaward-anachievementweareallverypleasedwithandproudof.
The2018CouncilelectionssawtheretirementofDavidDowniefromtherolesofCouncillorandMayor,
6 Northern Midlands Council | Annual Report 2018/2019
afterholdingthepositionofCouncillor,DeputyMayorandMayoroveracombinedperiodof25yearswiththeNorthernMidlandsCouncil,aswellasservingontheCampbellTownCouncilpriortothe1993formationoftheNorthernMidlandsCouncil.LeisaGordonleftCouncilafterher4-yeartermandIthankthembothfortheirdedicationandunwaveringsupportforthecommunityandtheCouncil.
SevenCouncillorsreturnedfollowingtheOctober2018localgovernmentelections;wealsowelcomedbackMatthewBrookswhoservedpreviouslyfrom2005to2014;andJanDaviswhowaselectedforthefirsttime.
OurCouncillorsholdadiverserangeofviewswhichisofbenefittothecommunity.
CouncillorsandstaffalsocongratulateCrMaryKnowlesOAMourrecentlyelectedMayor;Mary’simmediatecommitmentandpassionfortheroleisevident,takinguplocalandregionalissueswithenthusiasm.
Des JenningsGENERAL MANAGER
� AFLTasmania,CampbellTownWarMemorialOvalfundingpartners(MayorDavidDowniemeetingwithTrishaSquires,CEOAFLTasmania)
� Council’sManagementTeam � CressySwimmingPool–AnnualBusTour
Northern Midlands Council | Annual Report 2018/2019 7
� SenatorSteveMartinandMayorKnowles—National’sin Government,announcementofthe$7Mfundingcommitment
� AnnualBusTour—meetingwiththeLongfordLocalDistrictCommittee� LongfordRecreationGroundupgradedentrancetoamenities
8 Northern Midlands Council | Annual Report 2018/2019
� NorthernMidlandsCommunity&VolunteerExpo
MAJOR EVENT
Tour of the Northern Midlands municipal area by Her Excellency Professor the Honourable Kate Warner, AC, Governor of Tasmania, and Mr Warner.
Northern Midlands Council | Annual Report 2018/2019 9
On12November2018,HerExcellencyProfessortheHonourableKateWarner,AC,GovernorofTasmania,andMrWarnervisitedtheNorthernMidlandsCouncil.ThetourwashostedbyCouncil’sMayor,MaryKnowlesOAMandGeneralManager,DesJennings.
ThetourencompassedvisitstoNorthernMidlandslandmarksandfacilities,wheretheGovernorandherentourageweremetbythelocals.
Placesandpeoplevisited,included:theLongfordMedicalCentre,anEskleighGroupHome,LongfordRecreationGround,LongfordVictoriaSquare(VillageGreen),CressyDistrictHighSchool,BurlingtonBerries,thepracticallycompleteWoolmersBridge,GourmetSauceCompany,Adam’sDistilleryatPerth,CampbellTown’sValentinePark,JohnGlover’sCottageandthegardensatStrathmore.
HerExcellencytheGovernorspenttimewithparticipantsattheVolunteerExpoattheLongfordSportsCentre;CapestoneCollegestudents,representativesandresidentsofPoatinaatLongford’sVillageGreen;CressyHighSchoolDeputyPrincipalandstudents.
ThedaywascappedoffwithaCivicReceptionheldinhonourofHerExcellency’svisittotheNorthernMidlandswhichwasattendedbymanylocalidentitiesandrepresentativesofthecommunity.ThereceptionwasheldatCampbellTown’sGallery81andwasprecededbytheswearinginofthenewlyelectedNorthernMidlandscouncillors.
Councilthanksallthosethatmadethisdaypossible.
� CressyHighSchool � WoolmersBridgeconstructionsite
� JohnGloverCottagerestorationwithCarolWestmoor � StrathmoreConvictBuiltColonialResidencewithSueGillon
10 Northern Midlands Council | Annual Report 2018/2019
Council facts in brief• Approximately60%ofthepopulationresidesin5%ofthearea,thatis,generallyinthenorthwhichincludesLongford,PerthandEvandale.
• Councilisresponsibleformaintenanceof960kmsroadsand10,998m²bridgedeckarea;morethananyothercouncilinthestate.
• Council’sannualturnover(allfunctions)in2018/2019was$19million(2017/2018$17.8million).
• In2018/2019,57%ofthetotalrecurrentrevenueofthemunicipalitycamefromrates;20%fromGovernmentGrants,theremainderfromuserfeesandothersundryrevenue.
• ManyofthefeaturesthatmaketheNorthernMidlandsuniquealsopresentsomechallengesforCouncilandresidents,suchas• the size of the Council area: although large, is an
area with overall low population density, generating its financial resources from a comparatively small number of ratepayers;
• the various constituent communities: these have different levels of involvement in local government activities and services, and vary widely in their priorities and objectives.
OUR COUNCIL, PEOPLE & ORGANISATION
Facilities maintained• 573kmsofsealedroads
• 387kmsofunsealedroads
• 150concretebridgestructures(10,351m²)
• 13timberdeckbridges(647m²)
• 8ovalsforsportingactivities
• 24communityhalls/centres
• 2caravanparks
• 3swimmingpools
• 7wastetransferstations
Councilcontrolsproperty,plantandinfrastructureassetsamountingto$263million;including$54.8millionofland(includinglandunderroads)andbuildings,$165millionofroadsandbridgesand$31.4millionofstormwater.
Our staff
2017/2018 2018/2019
STATUS NO. OF EMPLOYEES FTE NO. OF
EMPLOYEES FTE
Permanent 63 57 68 62
Casual 15 3 17 4
Total 78 60 85 66� MayorKnowlesandCouncil’sCorporateServicesManager,
MareeBricknell,meetingwithNational’sLeaderMichaelMcCormack andSenatorSteveMartintolobbyforprojectfunding
Northern Midlands Council | Annual Report 2018/2019 11
ORGANISATIONAL STRUCTURE
Manager, Works
Roads
Bridges
Stormwater
Plant
Waste Management
Community Amenities
Manager, Corporate Services
Financial Management
Information Management
Asset Management
Insurances
Risk Management
Work Health & Safety
Early Childhood Services
Cemeteries
Manager, Community & Development
Events & Tourism
Recreation
Animal Control
Environmental Health
Land Use Planning
Building Services
Urban Design
Committees of Management
Compliance
Governance
Executive Administrative Support
People & Culture / Human Resources
Economic Development
Communications
Youth Services
Emergency Management
Residents
Elected Council
General Manager
12 Northern Midlands Council | Annual Report 2018/2019
ROLE OF COUNCIL
� LongfordRecreationGround—redevelopedcommunityfacilities
COUNCIL MEETINGS
TheNorthernMidlandsCouncilheldOrdinaryCouncilmeetingsmonthlyonaMondayinaccordancewiththefollowingschedulefor2018/2019:
• Monday16July2018
• Monday20August2018
• Monday17September2018
• Monday15October2018
• Monday19November2018
• Monday10December2018
• Monday21January2019
• Monday18February2019
• Monday18March2019
• Monday15April2019
• Monday20May2019
• Monday24June2019
AtthemonthlymeetingsofficersofCouncilprovideCouncillorswithreportsonarangeofissueswhicharedealtwithunderthefollowingBusinessUnits:
• Governance;• CorporateServices;• Community&Development• Works&Infrastructure
OrdinaryCouncilmeetingsareopentothegeneralpublicandcommenceat5pm,Counciladjournsfora45minutebreakat6pmandrecommencesthesecondsessionofthemeetingwithPublicQuestionTimeat6.45pm.Atthistimemembersofthepublicaregiventheopportunitytoaskquestions,makearepresentationand/orpresentinformation,onamatterinwhichtheyhaveaninterest,whichisbeforetheCouncilfordecisione.g.developmentapplications.ProceedingsoftheopensessionofCouncilMeetingsarerecorded.
GenerallytwoCouncillorworkshopsareheldmonthly,oneimmediatelypriortotheCouncilmeetingandtheothertwoweeksbefore.AtthistimeCouncillorsandOfficersmeettodiscussforthcomingreports,keystrategiesandreceivepresentationsfromindustrystakeholdersandcommunitygroups.
LocalGovernmentelectionswereheldinOctober2018.Thecertificateofelection,providedbytheTasmanianElectoralCommissionadvisingofthenineelectedcouncillorswastabledatthe19November2018Councilmeeting.
Council’sAnnualGeneralMeetingwasheldon10December2018andaSpecialCouncilMeetingwasheldon21December2018.
The Local Government Act 1993providesthatCouncillorshavethefollowingfunctions:
• Toprovideforthehealth,safetyandwelfareofthecommunity;
• Torepresentandpromotetheinterestsofthecommunity;
• Toprovideforthepeace,orderandgoodgovernmentofthemunicipalarea.
Inperformingitsfunctions,theCouncillorsaretoconsult,involveandbeaccountabletothecommunity.
14 Northern Midlands Council | Annual Report 2018/2019
Councillor allowances and reimbursements
2017/2018 2018/2019
MayorMaryKnowles $19,057 $48,401
MayorDavidDownie $58,600 $20,614
DeputyMayorRichardGoss $30,948 $30,017
CrDickAdams $14,683 $15,549
CrMatthewBrooks – $10,695
CrAndrewCalvert $14,683 $15,619
CrJanDavis – $10,091
CrIanGoninon $15,541 $15,919
CrLeisaGordon $16,375 $7,069
CrJanetLambert $14,838 $15,811
CrMichaelPolley $15,374 $15,478
Councillor attendance
Year 2018 2019
Date 16/07 20/08 17/09 15/10 19/11 10/12* 10/12 21/12 21/01 18/02 18/03 15/04 20/05 24/06
MayorDavidDownie
MayorMaryKnowles
DeputyMayorRichardGoss
CrDickAdams
CrMatthewBrooks
CrAndrewCalvert
CrJanDavis
CrIanGoninon
CrLeisaGordon
CrJanetLambert
CrMichaelPolley
*AnnualGeneralMeeting
Councillor attendance
2018/2019 90.5%
2017/2018 90.6%
2016/2017 90.5%
Total reimbursements2018/2019 $206,109
2017/2018 $200,100
2016/2017 $199,408
Number of items considered by council2018/2019 406
2017/2018 369
2016/2017 405
Northern Midlands Council | Annual Report 2018/2019 15
ELECTED MEMBERS OF COUNCIL
Nine(9)Councillorswereelectedbythecommunityunderasingleelectoraldistrict.TheMayorandDeputyMayorwereelectedbypublicpolls,withthenextelectiontobeheldinOctober2022.
Mayor Mary Knowles OAMIliveatGippsCreekwithmyhusbandonadeerandfinewoolfarm.Forthepast10yearsonCouncilIhaveworkedtirelesslytoenablecommunityprojectstohappen.Irepresentthe29councilsontheFamilyViolenceConsultativeGroup,oncommunityboardspromotingtourismandeconomicdevelopmentwithacommon-senseapproachtogettingthingsdonewhileusingrateswisely.IwillcontinuetopromotetheNorthernMidlandsasaplaceforfamiliesandprogressivedevelopmentsupportingfarmers,industry,smallbusiness,tourism,youthandinfrastructuretokeepourtownsvibrantandviable.
Deputy Mayor Richard GossFirstelectedin2007,Iamahighschoolteacherwithamechanicalandconstructiontradebackground.
IgainedatertiaryeducationattheUniversityofTasmania(BachelorofEducation).IammarriedwiththreechildrenandliveatLongford.IgrewupatCressyandIhavegainedfirsthandexperiencedliving,workingandbuildingmydreamsandhopesintheNorthernMidlands.IhaveastrongcommitmenttotheenvironmentandheritageandwillensurethatallresidentsandbusinessesarefairlyrepresentedandconsultedonthefuturedecisionsoftheNorthernMidlandsCouncil.
Councillor Dick Adams OAMElectedin2014,IwastheformerFederalMemberforLyonsfortwentyyearsandalsopreviouslyservedwiththeStateGovernment.IhavelivedmostofmylifeinNorthernMidlands,startingworkattheLongfordmeatworks,andIamcurrentlyagainlivinginLongford.IknowtheNorthernMidlandsverywellandwanttoseeitdevelopasanexcitingplacetolivewhilevaluingtheheritageandtourismopportunitiesmorefully.IbelieveweneedgreaterinvestmentandmorecarefulplanningtoensureNorthernMidlandsgoesforwarditselfbeforeinvolvinguswithotherNorthernTasmaniapriorities.
Councillor Matthew BrooksHavingfirstbeenelectedtoCouncilin2005,Iservedto2014.Aftertakingabreak,Isoughtre-electionin2018.
IhavelovedlivinginLongfordforthelast49yearsandampassionateabouttheentiremunicipality.Iama“rollupyoursleeves”councillorandyouaremostlikelytoseemecookingacommunitybarbequeorhelpingoutlocalgroupsaroundthearea.
Actionsspeaklouderthanwords,andI’mknownforpubliclyspeakingoutonlocalissuesthataffectlocalpeople.Redtapeandbureaucracyaremypethateandit’saconstantthorninthesideoflocalgovernmentIbelieve.Isupportcommonsenseandworkhardthroughoutthismunicipality.WhilsttakingmymorningwalksaroundLongford,Italktothelocalsaboutlocalissuesthatreallymattertothem.Iamveryeasytocontactandwillrespondquicklytoemails,facebookandphonemessagesandcalls.
Councillor Andrew CalvertIamafamilymanandliveatLongford.IwaselectedtocouncilinOctober2007.Myprofessionisfarmingandruralconsultancy.Irespecttheneedsofbothtownandcountryratepayersandtheimportanceofcommunitiespullingtogether.Isupportsoundfinancialmanagement,maintainingandimprovingessentialservices,generatingeconomicgrowthanddevelopmentandcreatingjobopportunitieswhilstrespectingourheritage.
Councillor Jan DavisI’marelativelynewTasmanian,havingmovedherein2010.AftergrowingupinSydney,Imovedaroundquiteabit–I’venowlivedinfivestatesandoverseas.IreckonI’vesavedthebestuntillast.IfellinlovewiththeNorthernMidlands–itsruralcharacter,uniquevillages,communityspiritandsenseofoptimism–themomentIarrivedhere.It’swhyIchoosetoliveinPerth–andIwon’tbemovingagain.
Afterstartingmyworkingcareerasateacher,Imovedintotheagriculturesectorandbecameanindustrylobbyist.IamapassionateadvocateforthepeopleIworkwithand,soonaftermovinghere,IwasnamedasTasmania’stoppoliticallobbyistandoneofthemostinfluentialpeopleinthestate.Myworkasanagribusinessconsultantkeepsmebusy.Ialsositonanumberofboards,includingFermentationTasmaniaLtd,theRoyalFlyingDoctorService(Tasmania)Ltd,AustralianShellfishIndustriesPtyLtd,andLandcareAustraliaLimited.
16 Northern Midlands Council | Annual Report 2018/2019
� Lefttoright:CrIanGoninon,DeputyMayorRichardGoss,CrJanetLambert, CrMatthewBrooks,MayorMaryKnowlesOAM,CrAndrewCalvert, CrMichaelPolleyAM,CrDickAdamsOAM,CrJanDavis
IspendmysparetimeinmybeautifulgardenbytheSouthEskRiver,withmytwoWestHighlandTerriersandapileofgoodbooks.
Councillor Ian GoninonIamaproudandpassionateTasmanianwholivesinDevonHillsonahobbyfarmwithmywifeCheree.
IownandmanageavarietyofsuccessfullocalbusinessesandI’malsoanactivememberofthecommunity,sittingonvariousboardsandcommitteeswithintheNorthernMidlandsareaandTasmania.
AsacouncillorIamcommittedtosupportingandrepresentingmylocalcommunitytoensureitisaplacethatwe,andthoseafterus,canenjoy.IkeenlyfosterlocalbusinessgrowthaschairmanoftheNorthernMidlandsBusinessAssociationandstrivetoseethecontinueddevelopmentofourcommunity’sheritage.
Inthefuture,myaimistocontinuekeepingraterisestoaminimum,encouragetheemploymentofyoungTasmaniansaswellaskeepstrategicallyplanningourtownsfortheincreasedwell-beingofourgreatcommunity.
Councillor Janet LambertElectedtocouncilinOctober2011.Forover26years,myfamilyandIhavebeenproudtocalltheNorthernMidlandshome.IampassionateaboutcontinuingtheworkIhavestartedinthelocalgovernmentsector,notonlybeingastrongvoiceforregionalandruralcommunitiesbutalsoapersonofaction,ensuringpositivechangehappensandcommunitiesthrive.
Thisisawonderfulplacetolive—andIwanttodoallIcantosecureourcommunity’slong-termfuture.
Throughmycommunityactivitiesandrolewithinthecouncil,Ihopetoleavealastinglegacyforthefuture,ensuringourregionisstrongandsustainable.Iconsidermyselfveryapproachable,honestandtransparent;applyingacommonsensepointofviewtowardsallissuesputforward.ItisimportanttomethatIdemonstratethesevaluesatalltimestothecommunitiesIamprivilegedtorepresent.
Councillor Michael Polley AMFor42yearsasaMemberofParliamentIvigorouslyandsuccessfullyengagedwithfederal,stateandlocalgovernmentsandactivelyparticipatedinmanycommunities.IhopetobringtheexperiencesIhavegainedtotheNorthernMidlandsCounciltablesothatIcanhelpfacilitateastronger,moreprosperousanddiversefutureforallourratepayers.
Council’sexecutivecommitteeconsistsofMayorMaryKnowles,DeputyMayorRichardGossandCouncillorJanetLambert.
COUNCIL’S EXECUTIVE COMMITTEE
Northern Midlands Council | Annual Report 2018/2019 17
MEMBERS SERVING ON DISTRICT COMMITTEES AT 30 JUNE 2019
Avoca, Royal George & Rossarden Local District CommitteeChairperson: Mrs S FreemanMembers: MsJAllen MrsHReynolds MrsSSquires MsCClarke MrMMcGreeCouncillor: Mayor M Knowles
Campbell Town District ForumChairperson: Mr M RoachMembers: MrJAshman MrsJDavis MrODiefenbach MsSHills MrsJLyne MrBPerkins MrKReid MrsJClarke MrsDThomasCouncillor: Cr A Calvert
Cressy Local District CommitteeChairperson: Mr D Rowbottom Members: MrsAJenkins MrJCox MrPGoss MrsAGreen MrsHHoward MrsHWilliams MrsMTaylor MrATurnhamCouncillor: Cr R Goss
Evandale Local District CommitteeChairperson: Mr J LewisMembers: MrSBaldock MrsCBrown MrsAHarvey MrsHHoughton MrBLawson MrJRemess MrsSKensittCouncillors: Cr J Lambert Cr J Davis
Longford Local District CommitteeChairperson: Mr N TubbMembers: MsDAlty MsJClarke MrsTGoldsworthy MrDPettyfor MrLLangan MrGCatchlove-Owen MrsIApostolCouncillor: Cr D Adams Cr M Brooks
Perth Local District CommitteeChairperson: Mr T PurseMembers: MrPDell MrGEberhardt MrDSmith MrJStagg MsSWhite MrPGroves MrsLWilton MsSField MsLPyecroftCouncillor: Cr J Lambert Cr J Davis
Ross Local District CommitteeChairperson: Mr A Thorpe Members: MrsJBennett MrsCRobinson MrHJohnson MrACameron MrsHDavis MrMRodrigues MrTJohnson MrRHebbard MsCHurrenCouncillor: Cr A Calvert
MembershipofCommitteesspansa2-yearperiod,withmembershipterminatingat30June2020.
18 Northern Midlands Council | Annual Report 2018/2019
MAJOR STRATEGIC ISSUES
� ViewofthepeacefulSouthEskRiver
Council worked on a number of key issues which were identified in the Strategic Plan 2017-2027; Council has undertaken projects to address these issues as identified in the Annual Plan for 2018/2019.
TheeconomicprosperityofourregionisimportanttotheNorthernMidlandsCounciltoensureourcommunitiesimprovetheirqualityoflife.
OurcommunitieshavedistinctivelocalconditionsthataffecttheirdevelopmentandinfluenceCouncilsdecisions.Councilendeavourstoprovidethebestenvironmentpossibletoimprovetheeconomiccapacityofthediversecommunitieswithinourmunicipalarea;and,tothisend,continuestolobbyandworkwiththestateandfederaltiersofgovernment,businessandcommunitysectorpartnerstocreateanenvironmentconducivetoeconomicgrowth,jobcreationandtheoverallbettermentofallcommunitieswithintheNorthernMidlands.
AnumberoffactorswhichinfluenceeconomicdevelopmentareoutsideofthecontrolofCouncil;however,throughlong-termplanning,strategiesandthenurturingofpartnershipsCouncildoesitsutmosttoensureitiswell-placedtosustainthediverseeconomyandfacilitatefuturedevelopmentwithinourregion.
Councilrecognisesthateconomicdevelopmentisnottheonlymeasureofprogressforourcommunity.Environmentalandsocialissuesmustbetakenintoaccountwhenencouragingeconomicdevelopmentandalsointheprovisionoflanduseplanning,engineeringinfrastructure,wastemanagementandenvironmentalhealth.ThecommunityisalsolookingtoCounciltoplayapro-activeroleinnaturalresourcemanagementthroughprogramssuchaslandcareinitiatives.
TheCouncilhasworkedcloselywithNRMNorth,andthelocalcommunitygroupstofacilitateandadministeranumberofprojects,suchas,Perth’sSheepwashCreekWaterSensitiveUrbanDesignprojectandWestPerthUrbanDrainageimprovements.
INTRODUCTIONECONOMIC DEVELOPMENT
SUSTAINABLE DEVELOPMENT
20 Northern Midlands Council | Annual Report 2018/2019
Counciliscommittedtopromotingthehealthandwell-beingofNorthernMidlandsresidentsandvisitorstotheregionthroughthedevelopment,enhancementandexpansionofrecreationalandsportingfacilities.
TheCouncilhascontinuedtoresourcetheLocalDistrictCommitteesatCampbellTown,Ross,Evandale,Perth,Longford,CressyandtheAvoca,RoyalGeorgeandRossardenarea.
CouncilcontinuestolobbyTasWater,astheresponsibleentity:• toconsideroptionsforsewagedisposalatAvoca;• nottoincreasefeesinexcessoftheconsumerpriceindex.
CouncilcontinuestolobbytheStateGovernmentfortheretentionofTasWaterdividendstoLocalGovernment.
COMMUNITY WELL-BEING
� Playground,SeccombeStreet,Perth
Northern Midlands Council | Annual Report 2018/2019 21
OneoftheCouncil’scoreresponsibilitiesistheon-goingmanagementofitstotalassetbase.WhileCouncilhasacknowledgeditsexpandingroleincommunitydevelopment,itmustbalancethiswithadequatemaintenanceandrenewalofitsassets.CouncilmaintaineditsLongTermFinancialPlanandAssetManagementPlansduring2018/2019whichprovideaframeworkforCounciltocreate,renewandmaintainmajorinfrastructureinasustainablemanner.
During2018/2019Councilspent$1.9million(2017/18$2.4m)towardsupgradingandrenewalofCouncil’sroadnetworkand$1.9million(2017/18$2.0m)towardsmaintainingtheroadassetbase.Inaddition,anamountof$3.71million(2017/18$0.43m)wasspentonthereplacementofsix(6)bridges,and$783,519(2017/18$77,725)onadditionalstormwaterassetsrecognised.Buildingassetsrecognisedtotalled$0.61million(2017/18$0.9m).
MAINTAINING CORE FUNCTIONS OF COUNCIL
FUTURE FUNDING
CouncilcontinuestoobjecttotheproblemofcontinuedreallocationofresponsibilitiestoLocalGovernmentfromtheStateandFederalGovernmentswithoutcommensuratefinancialsupport.CouncilwelcomestheadditionalFederalGovernmentRoadstoRecoveryProgramfundingallocatedandcontinuestolobbyforthecontinuationoftheRoadstoRecoveryProgramonanongoingbasis,beingtheCouncilwiththemostroadlengthintheState,itisimperativetoensuremaintenanceofthisimportantinfrastructureintothefuture.
Councilwillcontinueto• applyforgrantfundingincludingtheBlackSpotRoadsProgram,RegionalDevelopmentFundingrounds,TasmanianCommunityFundgrants,BuildingBetterRegionsFundandSport&RecreationGrantsProgram;and
• lookfornewdevelopmentandotherfinancialrevenuestreamstolightentherateburdenonitscommunity.
The Annual Plan sets out the objectives as listed in Council’s Strategic Plan and shows the performance in each activity.
� IrrigationschemesthroughouttheMidlands continuetogrowproductivity
22 Northern Midlands Council | Annual Report 2018/2019
� PuntificationProjectatPerth
ANNUAL REVIEW OF COUNCIL PROGRAMS
STRATEGIC PROJECTS
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
LocalGovernmentReform
✓ Review Review ✓ ONTRACKMinisterGutweindeliveredstudy.NOAGroupengagedasProjectManagersforSharedServicesImplementationProject.NOAheldworkshopson5priorityCouncilfunctions:IT,RegulatoryServices(Planning/BuildingCompliance),Payroll/Rates,RiskManagement/WH&S.SharedcontractforLegalServicesachieved.JointITplatformcurrentlybeinginvestigated.
ElectedMembersDevelopmentandAnnualPlans
✓ Review ✓NOTSTARTED(OBSTACLES) PolicyandAnnualPlantobeprepared.
PeopleandCulturePlan
✓ ✓ Update ✓ ONTRACK Frameworkutilisedforrecruitmentisbestpractice.EmployerofChoice—achieved.CorporateServicesDepartmentreview.EnterpriseAgreementnegotiated.
BestBusinessPractice,GovernanceandCompliance
✓ Update Update ✓ ONTRACK LegislativeAudit,DelegationsReviewandPolicyManualupdateongoing.
MediaandMarketing ✓ Update Update ✓ ONTRACK CommunicationsStrategyandFrameworkdeveloped.ExpandingCouncil’scommunicationsthroughsocialmediaandotherpublications.
GOVERNANCE
Governance includes provision of elected representation, executive support, strategic planning, economic development, community development and public relations.
24 Northern Midlands Council | Annual Report 2018/2019
GOVERNANCE
Objective:Provision of quality governance and effective leadership to support and enrich community life.
Performance:• Ourdecisionmakingprocesseswillbefairandaccountableandwillalwaystakeaccountoftheeconomic,environmentalandsocialsustainabilityofanyproposedaction.
• Counciliscommittedtoprovideinnovative,efficient,equitableandqualityserviceforallthecommunityandrespectforeachandeverycustomer.
• Staffwilldealwithcustomersinanopen,honestandcourteousmannerandrespecttheirprivacyatalltimes.
• Council’sadministrativeheadquartersisbasedat13SmithStreet,LongfordandarangeofservicesarealsoprovidedbyServiceTasmaniaattheTownHall,CampbellTown.
• Councilreviewsandimplementsorganisationalvaluesinitsdaytodayoperations.
• NineCouncillorsrepresenttheNorthernMidlandsmunicipalarea.
• CouncilgenerallymeetsonthethirdMondayofeachmonthwithpublicagendasavailablepriortoeachmeeting.
• 12OrdinaryMeetingswereheldduring2018/2019.AttendancebythepublicwaswelcomedandcopiesofMeetingAgendasandsupportingdocumentationweremadeavailable.Atwenty(20)minutepublicquestiontimewasprovidedateachCouncilmeetingat6.45pm.
• CouncilhelditsAnnualGeneralMeetingon10December2018andaSpecialMeetingon21December2018
• Thecertificateofelection,providedbytheTasmanianElectoralCommissionwastabledatthe19November2018Councilmeeting.
• CouncillorshadaBusTourofthemunicipalarea,meetingcommunitygroupsandassessingbudgetprioritieson27March2019.
• LocalDistrictCommitteesatEvandale,CampbellTown,Ross,Longford,Cressy,PerthandAvoca,RoyalGeorge&Rossarden,continuedtoprovidevaluableinputintovariousissuesconsideredbyCouncilthroughouttheyear.
� GovernanceTeam
Northern Midlands Council | Annual Report 2018/2019 25
Performance (continued):Council:• updateditsDelegationsRegister• reviewedthefollowingpolicies
– CodeofConductforElectedMemberson18February2019– Council’sCCTVProgram&CodeofPracticeon20August2018– ManagementofDonatedGoodsAfteraDisasteron20August2018– MeetingProcedureson20August2018– UseofNorthernMidlandsCouncilLogoon20August2018.
• Adopted:– theElectedMembersProfessionalDevelopmentPolicyon21January2019– theWelcometoCountry&AcknowledgementofCountryPolicyon18February2019.
Councillorsattendedthefollowingconferencesandseminarsduringtheyear:• 25-27July2018:CrsDavidDownie,MichaelPolley,LeisaGordonandDickAdams– LocalGovernmentAssociationofTasmaniaAGM,generalmeetingandannualconferenceheldinHobart
• 17November2018:CrJanDavis– LocalGovernmentAssociationofTasmaniaWorkshopforNewCouncillors
• 16December2018:CrMaryKnowles– LocalGovernmentAssociationofTasmaniaMayor’sProfessionalDevelopment
• 16February2019:CrsMaryKnowles,IanGoninon&JanDavis– LocalGovernmentAssociationofTasmaniaPlanningAuthorityTraining
• 23-24March2019:CrMaryKnowles– ElectedMembersProfessionalDevelopment
• 5April2019:CrMaryKnowles– Women&LeadershipAustralia–WomeninLeadershipForum
• 1-3May2019:CrMichaelPolley– AMACAGM&AnnualConference
• 30May2019:CrMaryKnowles– LocalGovernmentAssociationofTasmaniaMayor’sProfessionalDevelopment
• 16-19June2019:CrsMaryKnowles&MichaelPolley– 2019NationalGeneralAssemblyofLocalGovernmentinCanberra.
CouncilallocatedSpecialProjectgrantstotalling$64,842tosportingandcommunitygroupsasfollows:• EvandaleCatholicCemetery—MemorialPeaceGarden...................................$13,499
• MorvenPark,Evandale—exerciseequipment....$8,415• PerthFootballClub—toiletflooring&plumbing...........................................$5,196
• CressyTownHall—heatpumps...................... $5,000• EvandaleFootballClub—electronicscoreboard...................................... $5,000
• MorvenPark—shadegazebo........................... $5,000• LongfordGolfClub—carparksealing............. $5,000• SESCampbellTown—shedextension.............. $4,545• ForestersHallDevelopment............................. $2,835• MensShedCampbellTown—AEDpurchase....$2,109• EvandaleTourismCentre—floorpolisher..........$1,591• NorthernMidlandsParish,CampbellTown—cemeteryextension............. $1,500
• MidlandPonyClub—arena&fenceimprovements...................................... $1,500
• CampbellTownBowlsClub—shadearea.........$1,364• EvandaleGardenGroup–schoolgarden............ $882• DevonHillsResidentsAssociation—securitycameras&lights......................................$552
• FusionAustralia—dataprojector........................ $454• DevonHills—noticeboardreplacement.............$400
26 Northern Midlands Council | Annual Report 2018/2019
In2018/2019Councilprovideddonationstotalling$19,372underSection77oftheLocalGovernmentActto:• CampbellTownDistrictHighSchool—InspiringPositiveFuturesProgram................$8,000
• CressyDistrictHighSchool—InspiringPositiveFuturesProgram................$8,000
• CampbellTownDistrictHighSchool—Chaplaincy........................................................$1,500
• AssistancetoCampbellTownSES—Councilwages&plant........................................$839
• LongfordChristChurch—clockmaintenance.......$314• CampbellTownDistrictHighSchool—SchoolAchievementAwards............................. $103
• CressyDistrictHighSchool—SchoolAchievementAwards............................. $103
• PerthFireBrigade....................................................$100• LongfordFireBrigade.............................................$100• RossSportsClub—defibrillator.............................$100• Flowers&gifts..........................................................$69• PerthPrimarySchool—SchoolAchievementAwards...............................$36
• EvandalePrimarySchool—SchoolAchievementAwards...............................$36
• LongfordPrimarySchool—SchoolAchievementAwards...............................$36
• AvocaPrimarySchool—SchoolAchievementAwards...............................$36
� MorvenParklights
� MorvenParkelectronicscoreboard� EvandaleCatholicCemetery—MemorialPeaceGarden
Northern Midlands Council | Annual Report 2018/2019 27
PEOPLE AND CULTURE: HUMAN RESOURCES
Objective:People and Culture generates professionalism: staff are engaged, committed, stable and innovative; employment relations are fair and consistent; the People and Culture framework is best practice; organisational and personal development is valued.
Performance:Council:• aimstoprovideasafe,healthyandsupportiveenvironmentwhereemployeesarevalued,respectedandareabletorealisetheirfullpotential.
• iscommittedtotheprofessionaldevelopmentofstaffmembersthroughprogramsthatfocusonspecifictrainingandgeneraldevelopmenttoassistwithachievingexcellentservicedeliveryandhas
madeacommitmenttoprovidecontinuedstafftrainingataminimumprovisionof4%ofwages.
• continuestoencouragestaffparticipationinworkplacereformbyholdingregularstaffanddepartmentmeetingsaswellassupportingaConsultativeCommittee.
InaccordancewiththeNorthernMidlandsCouncilStrategicPlan,oneobjectivewastostriveforanominationasanEmployerofChoice;weaccomplishedthisandmore.WenotonlylodgedourfirstsubmissionforthisAward,butwerenamedafinalist,andtheninductedintotheEmployerofChoiceHonourRollinJune2019.ThiswasahugeachievementforCouncilandallstaff.
Inthefirstquarterof2019,Councilbegannegotiationsontheir2019-2022EnterpriseAgreementwithbargainingrepresentativesandunionofficials.TheNorthernMidlandsCouncilEnterpriseAgreement2019-2022hasbeenlodgedandapprovedbytheFairWorkCommission.
Counciliscommittedtocontinuousimprovement,andanelementofthisistoregularlyreviewtheoperationswithinourdepartments.During2018-2019,CouncilconductedareviewoftheCorporateServicesdepartmentwhichfocussedonthecustomerserviceprovided,resourcingwithinthedepartmentandreviewofefficiencies,practicesandprocesses.
CouncilparticipatedintheAustralasianManagementChallengein2019.ParticipantswereNatalieHorne(Admin&RecordsManagement–CorporateServices)andTrentAtkinson(ProjectManager–CommunityandDevelopment)whom,togetherwithourneighbouringcouncilsofMeanderValleyandWestTamarformedacompositeteam.Thechallengeisasimulation-basedteambuilding,learningandnetworkingprogram,usingreallocalgovernmentthemes–thetypesofissuesthataseniormanagementteamwouldmostlikelyfaceinaCouncil.Thisopportunityprovidedanexcellentprofessionaldevelopmentexperience.
28 Northern Midlands Council | Annual Report 2018/2019
SPECIFIC DATA 2018/2019 2017/2018 2016/2017 2015/2016
Payrollcosts $4,391,564 $4,185,872 $4,731,130 $4,403,551
SuperannuationContributions $505,662 $485,008 $503,056 $498,701
WorkersCompensationInsurance/Expenses $116,975 $133,954 $153,557 $169,619
Annual,LongService,SickLeave&Provisions $762,139 $904,958 $993,212 $1,172,384
%ofPayrollCapitalised 10.5% 9.9% 6.6% 8.1%
PermanentStaff(atyearend) 62EFT 57EFT 56EFT 63EFT
CasualStaff(atyearend) 4EFT 3EFT 4EFT 2EFT
SickLeaveTaken(PermanentEmployees—paiddays) 4.8% 6.6 5.5 4.8
EmployeelearninganddevelopmentishighlyvaluedbyCouncilandwestrivetopromotepersonalandprofessionaldevelopmentopportunitiesforallourstaff.Manystaffattendedtrainingcourses,seminarsandworkshopsthroughouttheyear,whichwereofbenefittotheindividualsandCouncil,ultimatelyresultinginincreasedjobsatisfaction,motivationandefficienciesinprocesses,whichmeansgreaterproductivityandhigherqualityofworkoutput.
Thefollowingemployeesaretobecongratulatedontheirten-yearservicemilestoneswithCouncilduringthereportingperiod:AnthonyFrench,KarenMuirandMatthewSmithfromourWorksDepartment;ErinBoerfromCommunityandDevelopmentandJaneBoyerandMelanieFlemingfromCorporateServicesDepartment.
Asatthe30June2019,NorthernMidlandsCouncilhad68personnelemployedonfull-timeorpart-timebasisand17casualemployees.Theturnoverrateforthereportingperiodwas8.5%(2017/20186.5%),whichisconsideredahealthyturnoverrate.
� CouncilparticipatedintheAustralasianManagementChallenge� ErinBoer(Community&Development)achieved
her10-yearservicemilestoneduringtheyear
Northern Midlands Council | Annual Report 2018/2019 29
EMERGENCY MANAGEMENT
Objective:The framework that provides for planned and coordinated measures that reduce vulnerabilities and enhance capacities to withstand emergencies, as well as cope with and recover from their impacts.
Performance:Councilhascontinuedinvolvementinemergencymanagementplanning.
TheEmergencyUnitatCampbellTownhas12membersanditsroleistoprovideroadsiderescueassistanceandotherneedsaspertheEmergency Services Act 1976.
Councilfundsthepurchaseandmaintenanceofroadaccidentrescuerelatedequipmentandservices.
Firehazardsareidentifiedwithinthemunicipalareaandabatementnoticesareissued.
TheGeneralManagerisappointedastheMunicipalSESco-ordinator,withCorporateServicesManagerappointedasDeputyMunicipalSESco-ordinatorandtheRiskManagementOfficerasassistantSESco-ordinator.
ParticipatedinRegionalSocialRecoverytraining,networkingforumsandexercises,andprovidedsocialrecoveryservices.
InJanuary2019,incollaborationwithFusionAustralia,CouncilsetupandrananemergencyevacuationcentreatPoatinatosupportevacueesoftheCentralHighlandsfires.
COMMUNICATION
Objective:Encouragement of community confidence through communication, consultation and participation with equitable, transparent, accessible and consistent governance by genuine engagement with the community.
Performance:Councilsupportstheneedforcoherentregionalleadership,planningandeconomicpolicyframeworkstopromotetheregionalpotential.
CouncilactivelyparticipatedintheNorthernCouncilsSharedServicesImplementationProjectandTasWaterstakeholdermeetingsandtheSelectionCommitteeuntilNovember2018.
IsanactivememberoftheLocalGovernmentAssociationofTasmania(LGAT)andNorthernTasmaniaDevelopmentCorporation(NTDC);andsupportstheRegionalTourismOrganisationforNorthernTasmaniaandIntegratedTransportPlan.
Councilinvestigatesoptionsforprivateandpublicresourcesharingpriortoimplementingnewprograms.ResourceSharingispursuedwithotherCouncilswhereappropriate.
30 Northern Midlands Council | Annual Report 2018/2019
CouncilhasavitalanddemandingroletoplayinworkingwiththepeopleofNorthernMidlandstoshapeacommonfuture,itprovidespublicconsultationonmajorplansandprogramswherepractical.
Councilcontinueswithmasterplanninganddesigninconjunctionwithcommunityconsultationandparticipationonseveralmajorprojectsthroughoutthemunicipalarea.
A20-minutepublicquestionandstatementstimeisprovidedatallCouncilMeetingstoencouragepublicawarenessofactivities.
Councilcontinuallylobbies/liaiseswithMinistersofGovernmentsonissuesofimportancetothecommunity.Councilencouragesandsupportsactivelocalcommittees.
Councilaimstoprovideanenvironmentthatissafeandprovidestheopportunityforresidentstopursueaqualitylifestyle.Itencouragesaspiritofprideandappreciationofthecommunityanditsassets.
CommittedtoEndMen’sViolenceAgainstWomencampaignthroughcommunityeducationandawareness.
Councilnewsandactivitieswerebroughttotheattentionofresidentsvia:• OnepageinfortnightlypublicationoftheNorthernMidlandsCourierNewspaper;
• Council’swebsite;• viaFacebook;and• mediareleases.
CouncillobbiedGovernment:• toenforcetheprovisionsoftheleaseagreementbetweenAustraliaPacificAirportsCorporation(APAC)andtheCommonwealthGovernmenttoensurethepaymentofLauncestonAirport’sex-gratiaratespaymentstoCouncil
• tosupporttheTasmanianFreightEqualisationScheme
• tosupportatyrerecyclingsolutionforTasmania• forsupportand/orfundingfor:
– Avoca:Children’sPlayground– BenLomond:SkiFieldInvestmentProject– CampbellTown:» MainStreetUrbanDesign&TrafficManagementStrategy» CampbellTownWarMemorialOvalPrecinctMasterPlanProject
– CenotaphInterpretationProjects:atAvoca,CampbellTown,Cressy,Evandale,Longford,Perth&Ross– Cressy:» SwimmingPoolMasterPlanProject» CressyRecreationGroundMasterPlanProject
– Evandale:» MorvenParkRecreationGroundMasterPlan» HoneysuckleBanksMasterPlan» SealingofNileRoad
– LauncestonAirport&TRANSlink:PrecinctRenewalProgram,includingIntermodalFacility(incl.RailSpur),GasReticulationandStormwater– Longford:» LongfordUrbanDesignStrategy» LongfordRecreationGround2030MasterPlan» NorthernMidlandsHealth,FitnessandSportsCentre
– Perth:» PerthStructurePlan» SheepwashCreekWSUDOpenCorridorMasterPlan» PerthEarlyLearningCentre&CommunityCentre» PerthRecreationGroundMasterPlan» SouthEskRiverReserveConceptPlandevelopment
– Ross:» VillageGreenMasterPlan» SwimmingPoolMasterPlan
Northern Midlands Council | Annual Report 2018/2019 31
Councilconsultedextensivelywithstakeholdersinrelationtothefollowingproposedmunicipaldevelopmentplans:
• CampbellTownUrbanDesignandTrafficManagementStrategy
• CressySwimmingPoolMasterPlan• LongfordTownshipCBDUrbanDesignStrategy• PerthStructurePlan• CressyRecreationGroundMasterPlan• MorvenParkMasterPlan• LongfordNorthernMidlandsSportandFitnessCentre
• SheepwashCreekWaterSensitiveUrbanDesign.
Council’s Annual Awards and Australia Day event
Council’s2019eventtookplaceinEvandaleonSaturday26thJanuaryinconjunctionwiththeRotaryClubofEvandaleandwaswellattended.TheformalproceedingsincludedanaddressbyAustraliaDayAmbassadorWesSulzberger(cyclist),andthepresentationofCouncil’sAustraliaDayandVolunteerrecognitionawards.
Thefollowingawardswerepresented:• CitizenoftheYear:LinusGrant—forhisinvolvementwiththeLongfordcommunity
• YoungCitizenoftheYear:ThomasDwyer—forhisachievementsinsportandstudy
• CommunityEventoftheYear:Rossarden&FriendsKidsChristmasParty—continuouslywellsupportedeventthatprovidescommunityspirittothekidsoftheRossardenandAvocaarea
• AVolunteerRecognitionAwardwaspresentedtoRobertThomasforhisinvolvementwiththeCampbellTownSES
� Council’sAnnualAwardsonAustraliaDay
� LongfordRecreationGroundredevelopment—GrantsCommissionvisit
32 Northern Midlands Council | Annual Report 2018/2019
YOUTH SERVICES
Objective:Network and collaborate with a variety of agencies and organisations to identify, develop, implement and evaluate initiatives that address the numerous issues which impact young people within the municipality.
Performance:Council:• Facilitateshealthycommunitieswithastrongsenseofwell-being,akeyinCouncil’sStrategicPlan,addressingcommunitysafety,access,healthandeducationissues.
• EmploysaparttimeYouthOfficertosupport,improveaccessandserviceresponsesandprogramsforyouth.
• CollaborateswithLauncestonPCYCtoprovideyouthactivityprogramsatPerth,EvandaleandLongford.
• CollaborateswithYMCALauncestontoprovideyouthactivityprogramstoschoolsintheNorthernMidlands.
• ManagestheNorthernMidlandsFurtherEducationBursaryProgram.
• SupportstheChaplaincyprogramandtheBeaconInspiringFuturesprogramatCampbellTownandCressyDistrictHighSchools.
• NetworkswithagenciesincludingHeadspace,YouthHealthNorth,Beacon,CityMission,BraveheartsandCatholicare,toenhancetheircapacitytoprovideservicesandprogramstoNorthernMidlandsyouth.
• RepresentsNorthernMidlandsyouthonadvocacygroupssuchasNorthernYouthConsultativeCommitteeandNorthernMidlandsInteragencyGroup.
In2018-2019,thefollowingyouth-basedprojectswereimplementedintheNorthernMidlands:• SkateParkLeagueCompetitionheldatLongford.• InspiringFuturesprogramatCampbellTownandCressyDistrictHighSchools.
• YouthMentalHealthExpoheldatCressyDistrictHighSchool.
• JuniorActionGroupWaterFountainatMorvenParkfundraiseratEvandalePrimarySchool.
• Free2BgirlsgroupinLongford.• CressyDistrictHighSchoolDrop-In-Zone.
� BirthdayCakeFunatFree2BGirlsGroup
� PaintingatFree2BGirlsGroup
Northern Midlands Council | Annual Report 2018/2019 33
ECONOMIC DEVELOPMENT
Objective:To encourage sustainable economic development for the Northern Midlands Region in conjunction with the relevant stakeholders.
Performance:Keyeconomicdevelopmentinitiativesin2018/2019,including:• CollaboratedwithNorthernTasmaniaDevelopment,RegionalDevelopmentAustraliaandotherNorthernCouncilson:– thedevelopmentofthedraftNorthernTasmaniaRegionalEconomicDevelopmentPlanwhichsetsoutavisionforthenorthernregion,identifieswherefutureeconomicgrowthandemploymentislikelytocomefrom,andensurestheLauncestonCityDealisofbenefittothesurroundingregion;– thedevelopmentoftheNorthernTasmaniaPopulationStrategythatfocusesonattractingworkingagepopulationtotheregionbypromotingtheregion’slifestyle,liveabilityanddiverseemploymentopportunities.
• CouncilisamemberandshareholderofNorthernTasmanianDevelopmentCorporationLtd(NTDC)withaprimaryobjectivetoprovidepro-active,engagedandstrategicregionaleconomicleadership.Councilratepayersbenefitfromtheinvestmentviadirectandmaterialeconomic,employmentandinvestmentoutcomes,andcontributeindirectlytosocialandcommunitybenefitsasaconsequenceofNTDCachievingtheobjectivesthatitissetuptoachieve.Council’sannualfeesfor2018/2019were$48,913(2017/2018$55,267).
• Consultedextensivelywithlocalbusinessesandcommunitymembers,NMBAandotherkeystakeholderstodevelopthedraftCouncilEconomicDevelopmentFrameworkthatdovetailswiththedraftregionaleconomicdevelopmentplan.
• InaccordancewiththeNorthernTasmaniaPopulationStrategy,strivedtoimprovetheliveabilityofNorthernMidlandscommunitiesthrough:– FurtherplanningandpreliminaryimplementationoftownurbandesignandstructureplansforCampbellTown,PerthandLongford(supportedbyanAustralianGovernmentfundingcommitmentof$4mtowardstherevitalisationofthepublicspace,communityfacilitiesandstreetscapeintheheartofthetown);
– OngoingimplementationoftheSheepwashCreekwatersensitiveurbandesignOpenSpacePlan,andplanningoftheNorfolkStreetOpenCorridoratPerth;– SecuringanAustralianGovernmentfundingcommitmentof$2.6mforthedevelopmentofanexpandedPerthEarlyLearningCentreonagreenfieldsiteadjacenttoPerthPrimarySchool–worktocommence2019/2020;– ContinuingtheimplementationoftheRossVillageGreenMasterPlan;– InstallingaparkletinmainstreetCressy;– DevelopingaconceptplanfortheSouthEskParklandsatPerth;– CollaboratingwiththeStateGovernment’sEnvironmentalProtectionAgencyoncampaignstoreducewoodheaterpollutioninNorthernMidlandstowns;– WorkingwithlandownersseekingtodevelopsignificantnumbersofnewsubdivisionsinEvandale,PerthandLongford;– MakingasubmissiontotheAustralianGovernment’sSelectCommitteeintotheJobsfortheFutureinRegionalAreas.
• Aligningwiththedraftregionaleconomicdevelopmentplan’svisionofdevelopingyear-roundtouristdemandwithaparticularemphasisonextendingtheregional’stourismseasonintothetraditionallylow-yieldwintermonths,Councilhascontinuedtoadvocateforfundingtoimplement
34 Northern Midlands Council | Annual Report 2018/2019
therecommendationsoftheBenLomondTourismFeasibilityStudies.Thiswouldenablethepark’ssnow-makingandsnow-retaininginfrastructuretobeexpandedtoensureaconsistentsnowseason,andinfrastructureupgradestoenabletheparktobepromotedasafamilyfriendlytourismdestinationall-yearroundformountainbiking,rockclimbing,walkingandalpinefloraandfaunaeducationandenjoyment.
• Councilhascontributedtoeconomicdevelopmentintheagriculturalandbusinesssectorsby:– CollaboratingwithkeystakeholderstoadvocatefortheupgradeandexpansionofinfrastructureintheTRANSlinkcommercial,industrialandlogisticsprecinctadjacenttoLauncestonAirport,includingthestormwaterrenewalprogram,theintermodalfacilityandgasreticulation;– CollaboratingwithNMBAontheTRANSlinkLeadGenerationprojectthataimstoencouragenetworkingbetweentheprecinctbusinessesandattractnewbusinessestotheprecinct;– CollaboratingwithNMBAtoconstructatruckwashfacilityatPowrannainsupportofbio-security;– Completingthereplacementoftheone-lane,agedwoodenbridgeonWoolmersLanewithatwo-lane,concretebridgethathaseliminatedthethreatofa22kmjourneydetourbyindustry,touristandlocaltravellersintheeventoftheoldbridgebeingnolongerserviceable.
� InstallingaparkletinmainstreetCressy
Northern Midlands Council | Annual Report 2018/2019 35
COMMUNITY & DEVELOPMENT
Community & Development includes the provision of services relating to the following: Recreation, Tourism Promotion, Committees of Management & Non- Profit Organisations, Building, Health, Planning Services, Animal Control, Environmental Management and Compliance.
Council strives to facilitate healthy communities with a strong sense of wellbeing through the development of community services and activities that meet the needs and aspirations of Northern Midlands residents.
STRATEGIC PROJECTS
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
LandUseandDevelopmentStrategy ✓ Review 2017–2019 ONTRACK LandUseandDevelopmentStrategydeveloped.
TasmanianPlanningSchemeIntegration ✓ ✓ Review 2017–2020 ONTRACK DraftLocalProvisionsScheduledeveloped.
STRATEGIC PROJECTS TEAM
EconomicDevelopmentMasterPlan–Prepare,Prioritise,Implement
✓ ✓ Review ✓ ONTRACK
1.CouncilandNMBAarecollaboratingonasmall-scaleprojecttoidentifyopportunitiestogrowthenumberofbusinessesintheTRANSlinkprecinct.CouncilacceptedinprincipletheTRANSlinkPilotProject:Consultation,AnalysisandRecommendationsforGrowingandEnhancingtheTRANSlinkBusinessPrecinctinNorthernTasmaniaReport,August2018.NMBAcontractedApril2019toimplementtheTRANSlinkEngagementProject.
2.CommunityandbusinessconsultationsessionsonthedraftEconomicDevelopmentFrameworkheldJune2019.
STRATEGIC INFRASTRUCTURE PROJECTS
LauncestonGatewayPrecinctMasterPlanning ✓ 2017–2020 ONTRACK ListedasacomponentoftheMunicipalLandUse&DevelopmentStrategy.Optionsforsouthernexpansionprepared.
NorthernMidlandsRuralProcessingCentre ✓ ✓ ✓ 2017–2020 ONTRACK CombinedwithLauncestonGatewayPrecinctcomponentoftheMunicipalLandUse&DevelopmentStrategy.
36 Northern Midlands Council | Annual Report 2018/2019
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
PerthTownStructurePlan ✓ ONTRACK Councilhasendorsedtheplananddraftamendmentstoplanningschemetobeprepared.
PerthCommunity&RecreationCentre&PrimarySchoolIntegratedMasterPlan
✓ ONTRACK FundingcommittedfromFederalGovernmenttowardexpansionofPerthChildcareCentrebeingcalled.
SenseofPlacePlanning–allvillagesandtowns ✓ ✓ ✓ ✓ ONTRACK Masterplanningfortownshipsunderway.
LongfordCBDUrbanDesignStrategy ✓ ✓ ONTRACK Commitmentof$4millionfromNationalPartypriortofederalelectionbeingcalled.
LongfordPlaceActivationPlan ✓ ✓ COMPLETED Complete.
CampbellTownCBDUrbanDesignandTrafficManagementStrategy
✓ ✓ ✓ ✓ ONTRACKAwaitingdetaileddesign.Allocationin2018/2019budgettocommenceworks.StateLiberalelectioncommitmentof$1.9millionforunderpassbetweenWarMemorialOvalandSchool/MultipurposeCentre
RossTownCentreParkDevelopmentMasterPlan ✓ 2017–2020 ONTRACK Planningapprovalreceived.Stormwaterandfootpathworkscommenced.
RossSwimmingPoolMasterPlan ✓ ✓ 2017–2020 NOTSTARTED(OBSTACLES) Plancomplete.Nofundingcommittedforimplementation.
CressyRecreationGroundMasterPlan ✓ 2017–2020 ONTRACK
CouncilacceptedCressyRecreationGround2030MasterPlanatApril2018Councilmeeting.LevellingthePlayingFieldexpressionofinterestfor$354,076invitedtoprogresstoStage2applications(due26July2019).Finalplansbeingprepared.
CressySwimmingPoolMasterPlan ✓ 2017–2020 ONHOLD Stateelectionfundinggrantof$100,000received.$400,000commitmentfromNationalPartypriortofederalelectionbeingcalled.
EvandaleMorvenParkMasterPlan ✓ 2017–2020 ONTRACKCouncilacceptedMorvenRecreationGround2030MasterPlanatApril2018Councilmeeting.StateGovernmentlevellingthePlayingFieldgrant:$430,300securedtowardsdevelopmentofinclusivechangerooms.
FeasibilityStudy:InvestmentinBenLomondSkiFieldNorthernTasmania
✓ ✓ ✓ ONTRACK Studybeingdrivenbyexternalstakeholders,Councilsupportprovidedwhenrequested.IncludedinNMCPriorityProjects2019document.
SheepwashCreekWSUDOpenSpaceCorridor ✓ ONTRACKJuly2018:WSUDspacecorridorconceptplanandconcepts–PhilliptoDrummondstreets—receivedfromconsultants.Landacquisitionhascommenced
Northern Midlands Council | Annual Report 2018/2019 37
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
ECONOMIC DEVELOPMENT
TourismStrategyImplementation ✓ ✓ ✓NOTSTARTED(OBSTACLES)
AugmentedRealityProject—ForthenorthernpartoftheHeritageHighway,Rossisthefirsttowntocomeonboard.WorkcommencedJune2019.NorthernMidlandsBusinessandVolunteerExpo—planningunderwayforMarch2020expo.
COMMUNITY DEVELOPMENT
YouthandAgeingStrategy ✓ Review ✓ ONTRACK Youthofficerappointed,commencedFebruary2019.Newyouthprogramsandservicesbeingpursued.
DiscriminationStrategy ✓ Review ✓NOTSTARTED(OBSTACLES) Officersinvestigatingdevelopmentofstrategy.
FamilyViolenceStrategy ✓ Review ✓ ONTRACK CouncilcontinuestosupportEnd Men’s Violence Against Womencampaign.Officersinvestigatingdevelopmentofstrategy
SupportingHealthandEducationPrograms ✓ ✓ Review ✓ ONTRACK ParticipatingintheNorthernHealthProvidersNetworksmeetings.FurtherEducationBursaryProgramcontinuing.
SupportingEmploymentPrograms ✓ ✓ Review ✓ ONTRACKParticipateinLGATspecialinterestgroupsonaquarterlybasis.SupportWorkfortheDoleprogram.ParticipateinworkexperienceandUniversityplacements.
SupportingSportandRecreationPrograms ✓ ✓ Review ✓ ONTRACK
ParticipationinquarterlynorthernSport&Recreationmeetings.PlanningandimplementationofupgradetoCouncilownedsportingfacilitiesunderway.Supportprovidedtoparticipantsinsportingactivitiesonastateandnationallevel.
38 Northern Midlands Council | Annual Report 2018/2019
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
SocialRecoveryPlan ✓ ✓ COMPLETED Reviewcomplete
DisabilityActionPlan ✓ ✓ COMPLETED Reviewcomplete
CohesiveCommunitiesandCommunitiesatRisk ✓ Review ✓NOTSTARTED(OBSTACLES) Notyetcommenced.
REGULATORY
LegislativeAudit ✓ ✓ COMPLETED Reviewoflegislationongoing.
DelegationsReviews ✓ ✓ ONTRACK Reviewasnewstaffcommenceandlegislationchanges.Regulatorysoftwarepurchasedtoassist.
CouncilPolicyManualReview ✓ ✓ ONTRACK Policiesdueforreview,relevantmanagersandofficersnotified,scheduleforreviewinplace.Ongoing.
� CommunityandDevelopmentTeam
Northern Midlands Council | Annual Report 2018/2019 39
EVENT MANAGEMENT & TOURISM PROMOTION
Objective:• Provide advice and support to
event managers ensuring events in the municipality are run safely and successfully;
• Promote Northern Midlands as a tourist destination in a way that benefits local businesses, visitors and residents alike.
Performance:VisitorInformation:• ParticipatedinTourismVisitorInformationNetwork(TVIN)northernareaquarterlymeetings,andattendedtheAnnualTVINConference,representingtheNorthernMidlandsregionanditsfiveVisitorCentresonastate-wideplatform.TheeventsenabledthesharingofinformationabouteventsandattractionsinourregionandobtainingknowledgeandinformationtosharewiththeNorthernMidlandsVisitorCentres.
• FacilitatedtwoshoulderseasonmeetingsofthefiveNorthernMidlandsVisitorCentres,creatingnetworkingopportunitiesforthevolunteers,sharingchallengesandideas.
• CoordinatedthevolunteersandrestockingoftheNorthernMidlandsBusinessPromotion&VisitorInformationCentreatLongford.
HeritageHighwayTourismRegionAssociation(HHTRA):• SupportedtheHHTRAthroughfinancialcontributionandprovisionofsecretarialandadministrativesupport.
• CoordinatedthemaintenanceoftheHeritageHighwaywebsite,blogandsocialmediaplatforms.
• CoordinatedthereprintoftheHeritageHighwayTouringMap&Guide.
• CoordinatedtheimplementationoftheRossRevealedAugmentedRealityproject,whichoriginatedfromtheHHTRADestinationActionPlan.Projectcompletionisexpectedbytheendof2019.
Generaltourism&industryengagement• RepresentedtheNorthernMidlandsCouncilatvariousindustryworkshopsandforumsincludingtheTourismTasmaniaJourney’sForumandAustralianTourismDataWarehouseworkshop.
• DisseminatedindustryinformationfromkeytourismagenciestotourismoperatorsandbusinessesintheNorthernMidlands.
• Liaisedwithnewtourismoperatorsregardingnetworkingopportunities,facilitatingconnectionswithrelevantagenciesandprovidinginformationwhererequested.
Events• Maintainedanup-to-dateeventslistfortheHeritageHighwayregion,includingupdatingonlineeventscalendarsandnotificationtoapproximately300recipients,includingtourismoperators,state-widevisitorcentresandkeytourismagencies.
• AssistedwithenquiriesfromeventholderslookingtoholdeventsintheNorthernMidlands,advisingofrequirements,assistingwithcompliancecriteria,venuehire,facilitiesandpromotionviaournetworks.
• CreatedabusinesscaseforaNorthernMidlandsCommunityExpo.Planninghasprogressedfortheeventtotakeplaceon21March2020.
40 Northern Midlands Council | Annual Report 2018/2019
SupportedandpromotedSpecialEventswithintheareaandprovided$39,426grantsto:
ANZACDay $18,781
TourofTasmaniaRoad(7Day)Event $3,000
FestivalofSmallHalls $2,556
YMCASkateParkLeagueandDevelopmentProgram $2,000
AustraliaDayandVolunteerRecognitionCelebrations $1,638
TasmanianTroutFishingExpo(Cressy) $1,500
LongfordFunRun $1,364
Let'sRide,Longford—15January2019 $1,300
LongfordRSLRemembranceDay2018 $996
JohnGloverSocietyArtsFestival $900
LongfordJazzFestival $836
RossardenIsolatedChildren’sChristmasTrip $636
Cars,Bikes&BandsSymmonsPlains $500
RSLLongford—NationalServicemen'sReunion $500
Fusion—AustraliaDayFamilyFestival $500
TasmanianMunicipalBowlsChampionships,Longford $500
LongfordFishingClub—KidsDamDays $400
CampbellTownANZACGroup—RemembranceDay&ANZACDay $370
PEGreenMemorialCyclingRoadRace $350
LongfordShow $262
WoolmersFestivalofRoses $249
RossMarathon $188
RemembranceDay $100 � TourofTasmaniaRoadEvent
Northern Midlands Council | Annual Report 2018/2019 41
RECREATION
Objective:Promote the use of existing Sport & Recreation facilities, maintain and improve facilities to meet the communities needs.
Performance:CouncilisworkinginpartnershipwithStateandFederalGovernments,localcommunityserviceproviders,localcommunityorganisationsandmemberstodevelopandimplementstrategiestoencouragehealthylifestylesforNorthernMidlandsresidents.
In2018/2019Councilhasworkedtopromotethehealthandwell-beingofnorthernmidlandsresidentsandvisitorsbyundertakingthefollowingactivitiesinaccordancewithrelevantrecreationalfacilitymasterplans:• CompletionoftherenovationofthestadiumattheLongfordRecreationGroundcomprisinginclusivechangerooms,functionroomandgrandstandupgrade,anewstoragefacility,anelectronicscoreboardandnewovallighting.
• CompletionofanintegratedsportingandrecreationcomplexattheCampbellTownWarMemorialOvalthatcomprises:– anewmulti-functionfacilityencompassinga100personcapacityfunctionroom,meetingrooms,commercialkitchenandinclusivechangerooms;– connectivityofthemulti-functioncentretotheadjacentswimmingpoolcomplextoenablepoolpatronsaccesstothefacilitychangerooms;– twonewmulti-purposeall-weathercourtsfortennisandnetball;– redevelopmentoftheCenotaph;– anelectronicscoreboardandnewovallighting.
• CommencementoftheupgradingoftheLongfordCommunitySportsCentreincludinganewgym,changerooms,childcareareaandamezzaninefloorforfutureexpansion–workdueforcompletionin2019/2020.
• SecuringStateGovernmentLevellingthePlayingFieldFunding($430,300)forthedevelopmentandexpansionofinclusivechangeroomsatEvandale’sMorvenPark–workdueforcompletion2020/2021.Installationofanewelectronicscoreboard,ovallightingandstorage/maintenancefacility.
• SubmittinganexpressionofinteresttotheStateGovernmentLevellingthePlayingFieldgrantprogramforfundstowardstheconstructionofnewinclusivechangeroomsattheCressyRecreationGround,andinvitedinJune2019toproceedtoStageTwooftheapplicationprocess.
• SecuringaTasmanianCommunityFundsgrant($16,973)andamatchingAustralianGovernmentStrongerCommunitiesgranttodevelopayoungerchildren’splaygroundattheCressySwimmingPoolcomplex.
• SecuringanAustralianGovernmentgrantof$400,000(inadditiontoaStateGovernmentgrantof$100,00in2017/2018)fortheCressySwimmingPoolComplex.Workincludestherenovationofthekiosk,creationofanewfacilityentrance,resurfacingofthepoolconcourse,remediationofreinforcementcorrosioninthemainpoolandcarparksealing–worktocommencelate2019/2020.
• InstallingStageThreeoftheLongfordVillageGreenPlaygroundredevelopment,aninclusive,all-abilitiescarouselandswingseat,withfundingsupportfromTasmanianCommunityFund($29,539),VarietyTasmania($6,000),localcommunitydonations($3,100)andCouncil($7,326).
• SecuredanAustralianGovernmentcommitmentof$50,000andaTasmanianCommunityFundgrantof$36,680towardtheredevelopmentofthechildren’splaygroundatBoucherPark,Avoca.
• SecuringMASTfunding($50,000)towardstheconstructionofafloatingpontoonontheeasternsideoftheboatrampatLakeLeake.
42 Northern Midlands Council | Annual Report 2018/2019
MadeleineBerry–BursaryProgram2018 1,000
JessicaBartels–BursaryProgram2018 1,000
SophieHarding–BursaryProgram2018 1,000
BraydonPavia–BursaryProgram2018 1,000
AdamMartin–BursaryProgram2019 1,000
ChelseaJohnson–BursaryProgram2019 1,000
GabriellaFranklin–BursaryProgram2018 1,000
BlakeGeorge–BursaryProgram2018 1,000
LukeWelsh–BursaryProgram2018 1,000
KiarnaStonehouse–BursaryProgram2019 1,000
EdenArrietaShadbolt–BursaryProgram2019 1,000
LiaEacher–BursaryProgram2019 1,000
AladdinAddicoat–BursaryProgram2019 1,000
BellaSmith–BursaryProgram2019 1,000
JamesGrey–BursaryProgram2019 1,000
DarianRichardson–BursaryProgram2019 1,000
JoelStrickland–RoyalPerthShow2019YoungPoultryJudgesChampionships 66
SophieFletcher–2018TasmanianSeniorBowlsTeam 62
JudyGurr–2018TasmanianSeniorBowlsTeam 62
JackJarman–2018TasmanianSeniorBowlsTeam 62
DeniseMiddap–2018TasmanianSeniorBowlsTeam 62
NarrindaCawthen–2018AustralianIndoorBiasBowlsChampionships 62
SimonZaporozec–2018AustralianIndoorBiasBowlsChampionships 62
ShenayeZaporozec–2018AustralianIndoorBiasBowlsChampionships 62
JulieZaporozec–2018AustralianIndoorBiasBowlsChampionships 62
AvaWalker–InterschoolChampionshipsEquestrianCompetition 62
LucyJohnston–InterschoolChampionshipsEquestrianCompetition 62
ArchieClayton–KarlProsseltCupU12SoccerTeam 62
TaylahQuillam–AustralianLittleAthleticsChampionships 62
In2018/2019Sporting&AcademicAchievementDonationstotalling$16,810wereprovidedto:
� LongfordCommunitySportsCentre—expansionworksinprogress
� NarrindaCawthenatthe2018AustralianIndoorBiasBowlsChampionships
Northern Midlands Council | Annual Report 2018/2019 43
ANIMAL CONTROL
Objective:Promote responsible and considerate animal ownership through the control and regulation of pet animals and livestock to minimise public nuisance and maximise community benefit.
Performance:CouncilregulatesdogcontrolwithinthemunicipalareainaccordancewiththeprovisionsoftheDog Control Act 2000andCouncil’sDogControlPolicy.
Rolesandresponsibilitiesinclude:• Promotingresponsibledogownership• Maintainingaregisterofalldogsagedover6months
• Licensingkennels• Managingmunicipaldogpound• Providingdeclaredareaswheredogscanbeexercisedoffleadifundereffectivecontrol
• Investigatingcomplaintsrelatingtodognuisances• Levyingannualdogregistrationfees.
CouncilrevieweditsDogManagementPolicyon20August2018
2018/2019 2017/2018 2016/2017
DogRegistration 4,224 4,250 3,673
KennelLicences 78 76 70
No.ofImpoundedAnimals 77 84 74
� PPE,includingbodycamutilisedbyCouncil’sAnimalControlOfficer
44 Northern Midlands Council | Annual Report 2018/2019
ENVIRONMENTAL HEALTH
Objective:Provide for community wellbeing through a healthy living environment, healthy lifestyles and reducing disease.
Performance:Toresearchandresolveenvironmentalnuisances.
Topro-activelyimplementprograms/measurestoprotectcommunityhealthby:• facilitatingimmunisationprogramsforresidents• investigatingandactioningNotifiableDiseasecases• monitoringpotablewatersuppliesandotherwaters.
Toinspectandactionwithrespecttoregisteredpremises,level1activities(asdefinedbyEnvironmentalManagementandPollutionControlAct1994)andon-siteseweragedisposalsystems.
Councilsenvironmentalhealthofficerhasworkedinconjunctionwithvariousgovernmentdepartmentsintheassessmentandresolutionofincidentsofpotentialenvironmentalharm.ThedepartmentsincludetheEnvironmentProtectionAuthority,theDepartmentofHealthandHumanServices,TasWaterandTasmaniaPolice.
Mattersaddressedinclude:• Odouranddustcomplaints;• Foodsafetyrelatedconcernsandcomplaints;• Noisecomplaints;• Localindustryodouremissions;• Sewerageconnectionandodour;• Asbestosrelatedcomplaints;• Otherlocalindustryenvironmentalconcernsincludingindustrialwastestorageandreuse;and
• Airquality(smoke)incidents.
TheCommunityHealthReportaddressedobjectiveswithintheareasof:• Preventionandcontrolofnotifiablediseases;• Generalinfectiousdiseasescontrol;• TheschoolimmunisationprogramwascontractedtotheNorthernMidlandsMedicalService;
• PublicHealthRiskactivitiesincludingtattooing;• Regulatedsystems(coolingtowers)topreventthetransmissionoflegionella;
• Controlandmitigationofnoisenuisances;• RecreationalwaterqualitywasmonitoredinaccordancewiththePublicHealthAct1997,GuidelinesforRecreationalWaterQuality;
• Foodsafetyinitiativesandregulatorycontrolincludingfoodbusinessregistrationsandinspections;
• Assessmentandmonitoringofon-sitewastewatermanagement(septictanksystems).
SPECIFIC DATA 2018/2019 2017/2018 2016/2017
Licensedplacesofassembly 6 7 9
Northern Midlands Council | Annual Report 2018/2019 45
LAND USE, URBAN DESIGN & PLANNING
Objective:• Provide a co-ordinated land use plan
to facilitate controlled growth within the parameters of infrastructure availability, whilst maintaining certainty and harmony with local environs and community expectations.
• Shaping our communities, towns, villages and the region by planning and managing development, infrastructure and services.
Performance:Approved241applicationsincluding(totalapplicationsfigureincludes14approvalsforamendments),withafurther28developmentsdeemedexemptfromplanning:• ExpansionstoAdamsDistillery,Perth• Newbridges:RoyalGeorge,ToomsLakeandBrambletye
• Dogagilityequipment• WalkwayroofatEvandaleCommunityCentre• ElectronicscoreboardatMorvenPark,Evandale• ConcreteBatchPlantatBreadalbane• Newwarehousesandoffices,TRANSlink• GrainstorageatPowranna
Approved55newlots,27newdwellings,49newunits,83newsheds.
Received5NoticesofappealfromRMPAT.
Refused5applicationsandactivelyfollowedupillegalworksandnon-compliancewithplanningpermits.
CouncilAdopted/reviewedthefollowingCouncilpoliciesduringtheyear:• On-SiteStormwaterDetentionadopted24June2019• ReductioninPlanningApplicationfeesforCommunityProjectsreviewedon20August2018
� PerthLinkRoad—treeplantingcorridor
� ExpansionofHaywardsfacilityatTRANSlinkunderconstruction
46 Northern Midlands Council | Annual Report 2018/2019
BUILDING SERVICES
Objective:Provide regulatory framework to ensure all private and public buildings are constructed in accordance with the Building Act and Regulations, Building Code of Australia and other regulatory standards.
Performance:• Processedbuildingandplumbingapplicationswithinstatutorytimeframes.
• Providedreportingstatisticstorelevantagenciesonamonthlybasis.
• Issued212buildingapprovalstotalling$72.1million.• Issued1,396PropertyCertificates(Sec132&337),comparedto1,313lastyear.
SPECIFIC DATA 2018/2019 2017/2018 2016/2017 2015/2016
Applicationsapproved 212 154 175 226
Dwellings 108 64 45 57
Additionstodwelling,incl.out–buildings&sheds
87 84 111 128
Industrial/Commercial 17 6 19 26
Value $72.1m $27.0m $27.4m $31.5m
AverageProcessingTime(Days)
• BuildingPermit 7 7 14 6
• CertificateofLikelyCompliance 7 14 3 5
• PlumbingPermit 6 14 9 6
NoofInspections 326 238 248 764
SepticTank&AWTSApplications 29 25 9 19
� Council’sindependentlivingunitsatEvandale
Northern Midlands Council | Annual Report 2018/2019 47
COMPLIANCE
Objective:Monitor all relevant regulatory areas to ensure statutory compliance, ensuring the Northern Midlands is a safe environment in which to live, visit and work.
Performance:Respondtocomplaintsregardingnon-compliancewithlegislationregulatedbyCouncil,including:
• Planning• Building• AnimalControl• EnvironmentalHealth(includingnoiseandpollution)
Actionanybreachesoflegislationandenforceaccordingly.
Activelypromotecompliancewithlegislationthroughoutthemunicipalityandprovideinformationwherenecessary.
SPECIFIC ACHIEVEMENTS/ISSUES WITHIN THE COMMUNITY HEALTH REPORT 2018/2019 2017/2018 2016/2017
Notifiablediseasesinvestigated 3 4 4
Schoolimmunisationsadministered 45 199 105
Recreationwatermonitoring
• Riverwatercompliance 92.5% 91% 94.2%
• Poolwatercompliance 100% 100% 100%
Environmentalnuisancecomplaints 40 47 45
Registeredfoodpremises 121 92 122
Foodpremisesinspected 130 77 75
Registeredtemporaryfoodpremises 60 64 46
Publicenvironmentalincidents 0 0 0
48 Northern Midlands Council | Annual Report 2018/2019
COMMITTEES OF MANAGEMENT
Objective:Support Council Committees of Management and Community Organisations.
Performance:ProvidedongoingfinancialandadvisoryassistanceandsupportforrecreationfacilityManagementCommitteesandnon-profitcommunityorganisations.
Councilprovidesanannualallocationoffundsforcapitalworksrequestedbycommunitygroupswhichareassessedonaprioritybasis.
SpecialCommitteesrepresent$189,659(includingCouncilmaintenancegrants)operatingincomeand$212,995operatingexpenditureinCouncil’sfinancialstatement.SpecialCommitteescashandcashequivalentsrepresent$245,578inCouncil’sfinancialstatements($268,913in2017/2018.
SpecialcommitteesofCouncilmanagedthefollowingfacilitiesduring2018/2019:• AvocaHall/CommunityCentre• AvocaMuseumandInformationCentre• BishopsbourneCommunityCentre• CampbellTownPool• CampbellTownWarMemorialOval• CressyMemorialHall• CressyRecreationGround• CressyWarMemorialPool• EppingHall• EvandaleCommunityCentre• EvandaleWarMemorialHall• LiffeyHall• LongfordRecreationGround• MorvenParkRecreationGround(Evandale)• PerthCommunityCentre• PerthRecreationGround• RossRecreationGroundandSwimmingPool.
CounciladministerstheLakeRiverRiverworksDistrictfundstominimiseenvironmentalharmandriskwithintheboundariesofitsdistrict,complyingwiththeWater Management Act 1999anditsclosingfundsamountingto$12,699.
� CampbellTownWarMemorialOval multi-purposecomplex
Northern Midlands Council | Annual Report 2018/2019 49
STRATEGIC PROJECTS
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
AssetManagementPlanAnnualReview ✓ ✓ Review 2017–2027 ONTRACK RoadandBuildingrevaluationcurrentlybeingundertaken,reviewofAssetPlanstobecompleteduponreceiptofreview.
AnnualBudgetandQuarterlyReview ✓ ✓ Review 2017–2027 ONTRACK LongTermFinancialPlanupdated,andannualbudgetadoptedbyCouncilat24June2019meeting.
InformationTechnologyUpgradeProgram ✓ ✓ Review 2017–2027 ONTRACK Planning/Buildingsoftwareupgrade;LiveProCustomerServiceSystem;andOneTouchPayrollupgradeimplemented.Securityreviewconducted.
EmergencyManagement ✓ ✓ Review 2017–2027 ONTRACK RevisedEmergencyManagementPlanapprovedbyStateGovernmentApril2018.
WorkplaceHealthandSafetyActionPlanAnnualReview
✓ ✓ Review 2017–2027 ONTRACK RiskRegisterreviewed.WorkHealthandSafetyauditassessmentcompleted.Asbestosregistersforallpropertiescompleted.
CustomerServiceStandards ✓ Review Review Review ONTRACK LGATstatewidecommunitysatisfactionannualsurveycompleted.
CORPORATE SERVICES
Corporate Services includes provision of financial services, information systems, community and social (human) services.
� CorporateServicesTeam
50 Northern Midlands Council | Annual Report 2018/2019
FINANCIAL MANAGEMENT
Objective:Financial Management: provide practical, viable, sustainable financial management, policies and procedures.The financial management unit includes the following functions:
Asset Management:assistCouncilinimprovingthewayitdeliversservicesfrominfrastructureincludingroads,bridges,footpaths,stormwaterdrainage,buildingsandplantandequipmentandanyotherclassesofassets.
Council’sassetmanagementstrategyenablesCounciltoshow:• howitsassetportfoliowillmeettheservicedeliveryneedsofitscommunityintothefuture,
• enableCouncil’sassetmanagementpoliciestobeachieved,and
• ensuretheintegrationofCouncil’sassetmanagementwithitslong-termstrategicplan.
Insurances:protectCouncilfromfinancialclaimsorlossarisingfromanegligentact,errororomission,legalliabilityforpersonalinjuryand/orpropertydamageclaims.
Risk Management:identifyanypotentialthreatstofinancialandbusinessoperations;andtakenecessarystepstomitigate/eliminatethreatslikelytoaffectCouncil’sabilitytoachieveobjectives.
Performance: Thisunitincorporatestheprovisionoffinancialmanagementandtherelatedservicesofassetmanagement,insurancesandriskmanagement.
Financialservicesprovidedincluderatesadministration,receiptsandpayments,wagesandsalaries,budgetingandannualreportpreparation,investments,insurance,loans,assetregistersanddepreciation.
Councilidentifiespotentialsignificantrisksandobtainsinsurancecoveraccordingly.
CounciliscommittedtoembeddingenterpriseriskmanagementtocreateandmaintainanenvironmentthatenablesCounciltodeliverhighqualityservicesandmeetperformanceobjectives.Councilrecognisesthatriskmanagementisanessentialtoolforsoundstrategicandfinancialplanningandtheongoingphysicaloperationsoftheorganisation.
Tomeetthiscommitment,allemployeesarerequiredtobecompetentandaccountableforadequatelymanagingriskwithintheirareaofresponsibility.Council’sriskmanagementpolicyistheumbrellapolicyforallsupportiveactivitiesanddocumentation,whichhavetheobjectiveofimprovingprocessesbyreducingtheuncertaintyofoutcomes,therebyminimisinglosswithintheactivitiesandservicesprovidedbyCouncil.
Adoptedthe2018/2019AnnualPlanandBudgeton25June2018.
Therevaluationofthemunicipalareawasundertakenduring2018byLGValuationServicesandthevaluesareeffectivefrom1July2019,adjustmentfactorswillbeimplementedbi-annually.
TasmanianAuditOfficehasundertakentheFinancialAuditservicesforCouncilduring2018/2019.
TheFinancialandRiskManagementAuditCommitteemetduringtheyearandprovidedinputintoCouncil’soperations.
CouncilcollectsavolunteerfireservicelevyinrespectoflandinCressy,CampbellTown,Longford,EvandaleandPerth;andageneralfireservicelevyforallotherland.
TheFinancialReportfortheyearended30June2019isappendedtothisreport;includedistheIndependentAuditreportprovidedbytheTasmanianAuditOffice.
Counciladopted/reviewedthefollowingpoliciesduringtheyear:• AccesstoUnitsPolicyreviewedon20August2018• AuditCommitteePolicyreviewedon20August2018• CodeofTenderingandProcurementPolicyreviewed17September2018
• CustomerServiceCharterreviewed20July2018• DonationsPolicyreviewedon24June2019• RatesandChargesPolicyreviewedon24June2019
Northern Midlands Council | Annual Report 2018/2019 51
Council’srecurrentrevenueduring2018/2019was$19.0million($17.8m2017/2018),capitalincome$2.9million($3.4m2017/2018)resultingintotalincomeof$21.9million($21.2m2017/2018).Operatingexpenditurewas$18.0million($17.7m2017/2018),whichresultedinasurplusof$3.9million($3.4m2017/2018).
Theoverallsurpluswasslightlyinexcessofthe2018/2019budgetedsurplusof$3.8million;however,someindividualincomeandexpenditureitemsvariedconsiderably.
RateRevenuewasraisedviaadifferentialratingsystemin2018/2019basedgenerallyonthesameamountofraterevenue,plusindexationanddevelopment,aspreviousyearsforeachlandusecategory.TheGeneralRateinthedollarofassessedannualvaluewasincreasedby3.42%resultingintotalraterevenueamountingto$10.9millionor57%ofoperatingrevenueandwasgenerallywithinbudgetexpectations.Ratereceivablesat30June2019represent23.6%(21.6%atJune2018)ofraterevenue(or2.8%withthedebtimpairmentadjustment).Theincreasebeingmainlyduetoonelargeratedebtor.
CommonwealthFinancialAssistanceGrantRevenueincreasedby$142,631in2018/2019to$3.48million(adjustedforadvancepayments).Grantrevenuein2018/2019includesadvanceFinancialAssistancepaymentsof$1.81million($1.72m2017/2018).
Inaddition,Councilreceived$3,139,250ingrantfundingforprojectsincluding:
RoadstoRecovery $396,509
BridgeReplacement,MacquarieRiver,WoolmersBridgeNo.1130 $811,500
MorvenParkAmenitiesImprovements $587,300
CampbellTownRecreationGroundComplex $450,000
LongfordRecreationGroundAmenitiesUpgrade $233,409
ChildCare–operations&projects $222,792
PatonStreetStormwaterDiversionProject(NDRGP) $110,000
HeavyVehicleMotorTaxGrants $74,197
BlackSpotRoadFundingClarence/ArthurStreetPerth $56,950
CampbellTownTennisCourts $55,000
GateAutomationBackCreekFloodLevee(NDRGP) $40,000
CressyPoolInfrastructureUpgrade $33,946
LongfordVillageGreenCarousel&SwingSet $29,539
VulnerableRoadUsersPerthFrederick/FairtloughStreet $15,578
CatholicCemeteryEvandalePeaceGarden&Stormwater $11,980
MorvenPark,EvandaleGymEquipment $6,550
EmployeeTraining $4,000
Non-monetarycontributionrevenueamountedto$51,480($523,827wellbelowtheamountbudgetedtoreceivein2018/2019duetothehandoveroflesssubdivisionassetsthananticipated).
$7,000,000
General Rate Revenue $’s
FinancialYear
$5,000,000
$6,000,000
$11,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$018/19
$10,000,000
$9,000,000
$8,000,000
$12,000,000
07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18
52 Northern Midlands Council | Annual Report 2018/2019
InvestmentrevenuefromTasWaterdividend/taxequivalentincomeof$468,000($702,000forfullyearnon-prioritydistributionsbeingallocatedtocouncilsin2018/2019).
OperatingExpenditurefortheyearwas$42,066lowerthanbudgeted;however,employeecosts,materialsandservices,andlossondisposalofassetswerelowerwhichwereoffsetbyhighergovernmentcharges,depreciation,andworkinprogresscapitalised.
Depreciationactualcostincreasedfromthepreviousyearby$150,853to$5.7million,duetorevaluation/indexationofassets.
Councilrecordedanetincreaseinassetrevaluationofnon-currentassetsof$7.42million($5.6million2017/2018)onPropertyandInfrastructure.
Council’stotalequityin2018/2019increasedby$17.13millionto$324.35million($9.6millionto$307.2million2017/2018).
Councilrecordednon–currentinfrastructureassetswithawrittendownvalueof$263.0millionorGrossValueof$392.3million)asat30June2019(2017/2018$251.3million)orGrossValueof$372.7million.(Note14inthefinancialstatementprovidesabreakdownofassetvaluesrecognised).
Paymentsforpurchase/constructionoffixedassetstotalled$14.2million,representing54%oftotalannualcashflowduring2018/2019.
Derivedproceedsof$196,709fromsaleoffleet/plantitemsduring2018/2019.
Cashandinvestmentstotalling$10.24millionwereonhandattheendofthereportingperiod,whichisadecreaseof$3.94milliononlastyear’sbalanceof$14.18million.Cashandinvestmentsonhandrepresentmoneyquarantinedforthefollowingareas:
InfrastructureReserve $3.923m
GrantsPaidinAdvance $2.612m
MoneyheldinTrust $0.588m
EmployeeEntitlements $1.223m
SpecialCommittees $0.246m
GeneralFunds $1,651m
TradeandOtherReceivablesincreasedby$424,857asat30June2019mainlyduetolargegovernmentreimbursementsnotbeingreceivedbyyearendinthepreviousfinancialyear.
Workinprogressamountsto$6.921millionasat30June2019including$6.626millionmajorbuilding/recreationimprovements,$0.208millionstormwaterimprovements,$0.130millionroadworksand$0.163millioninothersundryworks.
During2017/2018councilborrowed$6.570millionundertheStateGovernmentAcceleratedCapitalWorksProgram(interestisreimbursedfora5-yearperiod).Totalborrowingsamountto$8.470millionasat30June2019.
TheTasmanianStateAuditOfficewasappointedauditorforfinancialperiodending30June2019atacostof$24,790(2017/2018$23,380).
TheAuditorGeneraladvisedthattobesustainable,localgovernmentneedstohavesufficientcapacitytobeabletomanagefuturefinancialrisksandshockswithouthavingtoradicallyadjusttheircurrentrevenueorexpenditurepolicies.WhilstCouncil’s2018/2019underlyingresultisa$0.896millionsurplusora5%underlyingsurplusratio(seeNote27),theresultissubjecttosomeone-offoperatingitems,andonlyasmalllossondisposalofassetsrenewedpriortoendoflifeduetosomemajorprojectsstillclassifiedasWorksinProgress.
� WorkinprogressontheLongford CommunitySportsCentreexpansion
Northern Midlands Council | Annual Report 2018/2019 53
INFORMATION MANAGEMENT
Objective:Provide practical, viable, sustainable information management policies and procedures; deliver information management services to meet organisation, statutory and community needs.
Performance:Counciloperatesacomputernetworkconnectingalluserswithintheadministrativeheadquarters.RemoteusersattheLongfordWorksDepotareconnectedtothenetworkviaafibreopticcable.
CouncilutilisestheOpenOfficePtyLtdLocalGovernmentsuiteofprogramsforfinancials,Intramapsmappingapplication,andtheTechnologyOneinformationmanagementsystem.
CouncilutilisesanInfonetandOffice365mailingsystemthroughouttheofficeaswellasbeingconnectedtotheInternet.
Council’semailaddressis:[email protected]
Council’swebsiteis:www.northernmidlands.tas.gov.au
CouncilisanactivememberoftheTasmanianTechnologyOne(ECMRecordsManagement)UserGroup.
ReviewedtheInformationManagementPolicyon20August2018.
DuringtheperiodundertookimprovementstoInformationTechnologysystemsasfollows:
• ProvisionofcommunityCCTV,continuedrolloutofCCTVcoverageofmajorbuildingsandattractions,$3,422;
• Upgraded11staffdesktop/laptopcomputers,$13,672;
• Upgradedprinters,severalmobilephonesandsundryelectronicitems,$2,967;
• Upgradedofficewirelessnetwork,$2,415;• Completeddatasecurityaudit;• ImplementedSingleTouchPayrollupgrade;• ImplementedDukhagfacilitybookingsystem;• AttendedTechOneConferenceinSydney,May2019;• ProvidedbodycamsanddashcamsforAnimalControlOfficersandComplianceOfficers;
• ImplementedbackupstotheCloud;• Upgradedtothelatestversionsofothersoftwareforallusersandnetworkservers.
54 Northern Midlands Council | Annual Report 2018/2019
EARLY CHILDHOOD SERVICES
Objective:Provide service within the limits of resource availability and without detriment to existing ‘traditional’ provision by private and government services rather than Council.
Performance:CounciloperatesLongDayChildcareServicesadjacenttothePerthCommunityCentrefivedaysperweekandattheCressyChildcareCentretwodaysperweek;theserviceoperatesbetweenthehoursof8amand6pm.AvocaChildcareCentreisoperatedeachMondaybetween9amand5pm.
MidlandsKidsClubAfterSchoolCareServicesareoperatedfromthePerthCommunityCentre,PerthPrimarySchool,CressyHighSchoolandLongfordPrimarySchool.
MidlandsKidsClubVacationCareServicesareprovidedduringschoolholidayperiodsfromthePerthCommunityCentre.
ContinuedtooperatetheNorthernMidlandsToyLibrary.
� ChildcareTeam� PerthChildcarefacility
Northern Midlands Council | Annual Report 2018/2019 55
WORK HEALTH & SAFETY
Objective:Protect the health and safety of all stakeholders in the workplace from exposure to hazards and risks resulting from workplace conduct.
Performance:Councilaimstoprovideasafe,healthyandsupportiveenvironmentwhereemployeesarevalued,respectedandareabletorealisetheirfullpotential.
CouncilcontinuestoencouragestaffparticipationinworkplacereformbyholdingregularstaffanddepartmentmeetingsaswellassupportingaConsultativeCommittee.
CEMETERIES
Objective:Maintain and manage the Perth and Longford general cemeteries and associated infrastructure and services.
Performance:Councilownandoperate:• theLawnCemetery,RoseGardenandNicheWallatCressyRoad,Longford
• aRoseGardeninPioneerPark,Evandale• PerthCemetery(takenoverfrom24June2000).
Aserviceisprovided,inconjunctionwithArrowEngravingPtyLtdtosupplymemorialplaques.
� InstallationofthebannerpolesatLongford’sVillageGreen
56 Northern Midlands Council | Annual Report 2018/2019
WORKS & INFRASTRUCTURE
STRATEGIC PROJECTS
PROGRESS REPORT UNDERWAY 2017-2020 2020-2027 ONGOING STATUS COMMENTS
TRANSlinkPrecinctRenewal—Stormwater
✓ ✓ 2017–2020 ONTRACK Processoflandacquisitionunderway.Seekinggrantassistancetofundplannedworks.IncludedinNMCPriorityProjects2019document.
CampbellTownWarMemorialOval
✓ 2017–2020 ONTRACK Ovallightingupgradeworkscomplete.Multi-functioncentreandancillaryworksbeingfinalised.
LongfordNMSportandFitnessCentre
✓ ✓ ✓ 2017–2020 ONTRACK Stage1tolock-up;Stage2fit-outtocommencelate2019.
EvandaleHoneysuckleBanks ✓ 2017–2020 ONTRACK Masterplancomplete.Onlyminorworksbeingundertaken.IncludedinNMCPriorityProjects2018document.
NileRoadUpgrade ✓ ✓ ONTRACK IncludedinNMCPriorityProjects2019document.
StormwaterManagementPlans ✓ ✓ Review 2017–2027 ONTRACK Initialdatacollectionsurveycomplete.ModelbuildforallTownsinprogress.FundingapplicationtobemadetofundmodellingworkforCampbellTown.
WasteManagement2017–2020 ✓ ✓ Review 2017–2027 ONTRACK MemberoftheNorthernWasteManagementCommittee.WTSdisposalandsupervisioncontractstenderedforlongtermprovisionofservices.Concretematerialcrushingimplemented.
NRMProgramCollaboration ✓ ✓ Review ONTRACK CollaboratingwithNRMNorthontheWSUDMasterPlanforSheepwashCreek.
LongfordRecreationGroundMasterPlan
✓ ✓ 2017–2027 ONTRACK Buildingandancillaryworksbeingfinalised.
SheepwashCreekWSUDOpenSpaceCorridor
✓ ✓ 2017–2027 ONTRACK Stage1complete.Stage2landacquisitionsinprogress.
Works includes the provision of maintenance and construction of Council infrastructure and facilities. Engineering Services includes the provision of the Engineering Design and Services, Waste Management & Infrastructure Management.
Northern Midlands Council | Annual Report 2018/2019 57
ROADS
Objective:Maintain through cost effective operations, safe and effective road network to meet the needs of all users.
Performance:Councilhasnorthernandsouthernbasedroadworkscrewsandresponsibilitiesincludeassetmanagement,roadconstruction,resealing,re-sheeting,grading,edgingandpotholing,footpaths,roadsideslashing,roadsidespraying,safetyrailing,signage,kerbandchannel,roadsidedrainageandemergencymaintenance.
NorthernMidlandshasatotalroadnetworkconsistingof:• 108kilometresurbansealedroads• 465kilometresruralsealedroads• 13kilometresurbangravelroads• 374kilometresruralgravelroads
CouncilundertakesascheduledrevaluationofroadinfrastructureassetsvaluedinaccordancewithAASB116 Property Plant & EquipmentandAASB113 Fair Value Measurement.Thecurrentreplacementcostiscalculatedusingcurrentconstructioncostsprovidedbyqualifiedstaff/consultants.
Asat1July2014RoadInfrastructurewasrevaluedfollowingphysicalconditionassessmentwhichresultedinatotalreplacementcostof$203,285,430andaccumulateddepreciationof$66,009,883andaNetamountatFairValueof$137,275,547.
Projectedrenewalfundingrequiredin2014RoadConditionAssessmentdepictedinFig1.1(referMoloneyRoadConditionSurveyReport2014).
� WorksTeam
58 Northern Midlands Council | Annual Report 2018/2019
Followingannualcostindexation,additionsanddisposals,anddepreciationthebreakdownofroadinfrastructurevalueasat30June2019isasfollows:
Replacementcost $218,911,303
AccumulatedDepreciation $77,336,198
NetamountatFairValue $141,575,705
Council’scurrentRoadAssetConsumptionratiois66%andoverrecentyearshasbeenconsistentlyabovetheStatetargetratioof60%.
Council’sRoadAssetRenewalfundingratiois119%whichindicatesthatithascapacitytofundassetreplacementrequirementsandiswellabovetheStatetargetratioof90-100%.
Road ReconstructionReconstructed1,512m²ofurban,and15,475m²ruralsealedpavementsatatotalcostof$0.795million.
Resheetedgravelroadsatatotalcostof$216,165.
ResealsSealed16,987m²neworreconstructedpavements;andresealed92,854m²ofthetotalsealedroadnetworkatacostof$0.669million.
FootpathsConstructed/reconstructedfootpathsatacostof$285,232:• 570m²concrete• 108m²hotmix• 1,532m²gravel• IncludingsectionsofMainStreet,Cressy;MalcombeStreet,CracroftStreetandBurghleyStreet,Longford;MaryStreet,Perth;andChurchStreetRoss.
Other Road InfrastructureNosubdivisionroadassetsweretransferredtoCouncilduringtheyear.
During2018/2019thereconstructionofasectionofBartonRoad,CampbellTownatacostof$396,509wasachievedthroughRoadstoRecoveryfunding.
ReconstructionofurbanstreetsincludingCracroftStreetvergebetweenWellingtonandHornestreets,Longford;HighStreetvergebetweenBarclayandRussellstreets,Evandale;andMaryStreet,Perth;atacostof$133,888.
CompletionofWoolmersLaneBridgeNo.1130,ToomsLakeRoadBridgeNo.4619,HoneysuckleRoadBridgeNo.4733,RoyalGeorgeRoadBridgeNo.2380,BrambletyeRoadBridgeNo.1820andBridgeStreetCampbellTownNo.5241atavalueof$3,709,741.
Constructed668mkerbandchannelatacostof$63,465.
InstalledtwonewheritagestreetlightlamppostsinEvandaleCBD,$13,891.
InstalledCressyparklet,$71,360.
Providedstreetfurnitureincludingseats,tablesandbenches,picnicsettings,andwastebinsacrossthemunicipalarea,$96,995.
Purchasedroadplant/vehiclesatanetcostof$655,696includingaJCBbackhoe,anewwatertanker,onenewIsuzutiptruck,twoJohnDeeretractorsandfleetitems(lightutilitiesandsedans).� Roadworks
Northern Midlands Council | Annual Report 2018/2019 59
STORMWATER
Objective:• Provide a stormwater network within
town areas to drain the majority of properties, road reservations and public open spaces.
• Maintain a safe and effective stormwater system (including kerb & gutter and drains), whilst utilising Water Sensitive Urban Design principles to mitigate the impact of development on waterways and improving visual and recreational amenity of the urban landscape.
Performance:ProgressedthestormwaterfloodingstudyfortheTRANSlinkindustrialareaandWestPerthUrbanStormwaterPlan.
MembershipoftheNorthernStormwaterProgram,TEERCommittee,$15,000.
CompletedthediversionofstormwaterfromthePatonStreetdetentionbasinatLongfordatacostof$428,476.
Undertookstormwater/drainageworks,installedvariousstormwaterpipesandassociatedmanholesandgullypitsatacostof$355,043,including:• Wetlands&Basins(Evandale/Longford/Perth)• Installednewstormwaterdrain—CemeteryReserveinEvandale
• Replacedstormwaterinfrastructure—HighStreet,EvandaleandUnionStreet,Longford
• Improvements—MacquarieandKingstreets,Cressy• Replacedstormwaterinfrastructure—UnionStreet,Longford
• ExtendedstormwaterinfrastructureinHartnollReserve,Evandale;CracroftStreet,Longford;MaryStreet,Perth;andatthenewRossVillageGreen.
PLANT
Objective:Procure, maintain and utilise plant & machinery in a safe, cost effective and efficient manner in the service and provision of community infrastructure assets.
Performance:Councilprovidefleetcarsformanagerialactivitiesandcommunityservices.
Heavyplantincludinggraders,backhoes,tractors,trucksareheldformaintenanceandconstructionofCouncilinfrastructureassets.
A10-yearplantreplacementprogramismaintainedandhireratesarecostedtoeachproject/activitytocoverrunningandreplacementexpenses.
� NorfolkStreetPerth,stormwatermanagement
60 Northern Midlands Council | Annual Report 2018/2019
BRIDGES
Objective:Manage bridges to ensure safety and maximum life span.
Performance:NorthernMidlandsisresponsibleforconstructionandmaintenanceofthefollowingbridgeandmajorculvertstructures:
Type length Number
Boxculvert 901m² 36
Concrete 9,260m² 111
Composite 48m² 1
Concretefootbridge 142m² 2
Concrete bridge structures 10,351m² 150
Pipeculverts 1,260m² 87
Timber 331m² 3
Timber(withconcreteabutment) 316m² 10
Timber bridge structures 647m² 13
Total 12,258m² 250
CompletedconstructionofWoolmersLaneBridge1130.
Constructed:ToomsLakeRoadBridge4619,HoneysuckleRoadBridge4733,RoyalGeorgeRoadBridge2380,BrambletyeRoadBridge1820andBridgeStreetCampbellTown5241atavalueof$3,709,741.
WASTE MANAGEMENT
Objective:Disposal of all forms of waste economically and effectively with a high level of environmental awareness. Strategy emphasises recycling, waste minimisation, litter reduction and service availability.
Performance:Councilprovidesafortnightlydoor-to-doordomesticwasteandrecyclecollectionservicetothetownshipsofAvoca,Cressy,Evandale,Longford,Nile,CampbellTown,Ross,Rossarden,Conara,EppingForest,PerthandRoyalGeorgeaswellassome320ruralpropertieswithinthenorthernarea.
TheAvoca,Evandale,CampbellTownandLongfordwastetransferstationsaresupervisedandgreenwasteisaccepted.
Provideastreetsweeping/cleaningserviceandlittercollectionserviceoftownstreetsandsomerecreationalareas.
Provideanannual“special”garbagecollectionintownshipareasduringDecember.
ParticipatedintheNorthernTasmanianDevelopmentRegionalWasteManagementCommitteeandadoptedtheWasteManagementBudgetfor2018/2019.
Provideda‘Special’refusecollectionserviceforallurbanareasforthepurposeofassistingthosewithlimitedaccesstodisposeofunwantedgoodstoCouncil’sWasteTransferStations.
Replacedmobilegarbagebinsasrequired.
ConstructednewwastestorageareaatLakeLeakecampinggrounds,$15,297.
InstalledasolarcompressingwastebinattheLongfordVillageGreenplayground$7,440.
� ToomsLakeRoadBridge(BridgeNo.4619)(before&after)
Northern Midlands Council | Annual Report 2018/2019 61
COMMUNITY AMENITIES
Objective:Provide, maintain and manage Council’s public building and recreation infrastructure assets.
Performance:Councilmaintainspublicbuildingsbussheltersandotherstreetfurniturethroughoutthemunicipalarea;andprojectmanagesconstructionof,andalterationsto,Councilbuildings.
CouncilsuppliesandmaintainssportandrecreationfacilitiesthroughouttheNorthernMidlandsarea.
Councilactivelysupportslocalrecreationgroundmanagementcommitteesandencourages/promotestheuseofexistingrecreationfacilities.
Councilalsoprovidesandmaintainsavarietyof:• parksandreservestoprovidepublicopenspaceandenjoymentforthecommunity.
• thepeacefulandmanicuredcemeterygroundsatLongford,PerthandEvandale.
• publicamenitiesandbuildingsaremaintainedacrossthemunicipalarea.
Facilitiesmaintained,include:• 8ovalsforsportingactivities• 24communityhalls/centres• 2caravanparks• 3swimmingpools• 7wastetransferstations
ConstructednewCampbellTownWarMemorialOvalmulti-functioncentreandtenniscourts;installednewelectronicscoreboardandinterchangebenches;andsiteworksandupgradeoftheCenotaph,$3.20million.
UpgradedLongfordRecreationGroundclubrooms,grandstandandamenities;installednewelectronicscoreboard;upgradedcricketnets,$2.44million.
LightingupgradedtosuitregionalclubsportsattheCampbellTown,Evandale,LongfordandPerthrecreationgrounds,$1.38million.
PurchasedlandinPerthtofacilitatestormwatermanagementandprovidepublicopenspace,$1.2million.
CommencedwithextensionsandimprovementstotheNorthernMidlandsHealth,Fitness&SportsCentrecomplexinLongford,$0.68million.
ProvidedadisabledaccesstothecouncilofficesatLongford,$177,830.
ExtendedtheprovisionofpoweredsitesattheLongfordCaravanPark,$104,000.
InstalledelectronicscoreboardsatEvandaleandLongfordrecreationgrounds,$91,550.
Constructedmulti-usestorageshedsatEvandaleandLongfordrecreationgrounds,$88,065.
InstalledstreettreesinSmithStreet,Longford,$40,625.
InstalledsolarpanelsatBishopsbourneCommunityCentreandMorvenParkclubroomsatEvandale,$29,228.
UpgradedthechlorinationsystematRossswimmingpool,$23,133.
ReplacedtownentrancesignageatConara,$13,815;andcompletedreplacementoftownentrancesignageatAvoca$7,620.
ErectedheritagestylefrontfenceattheRossVillageGreen,$17,566.
Installed4bannerpolesatthefrontofVictoriaSquareinLongford,$13,038.
InstalledfourheatpumpsintheCressyhall,$9,818.
PurchasedaPhantom4ProDrone,$2,529.
62 Northern Midlands Council | Annual Report 2018/2019
MAJOR PROJECTS & WORKS
� LongfordRecreationGround,upgradedclubroomsandamenities—worksinprogress
MAJOR PROJECTS
With the announcement of State Government Stimulus funding in 2017 Council sought to bring forward some major building improvement works largely in accordance with adopted facility Master Plans.MajorProjectscommencedand/orcompletedduringthefinancialyear,include:
Campbell Town War Memorial Oval: New Multi-Function Facility CouncilrecognisedthattheWarMemorialOvalprecinct’sclubhouse,amenitiesandgrandstandhadreachedtheendoftheirserviceablelifespanandthetennisclubwishedtorelocatetotheprecinct.Alsolocatedatthisprecinctisthetown’sCenotaphwhichrequiredupgradingandlandscapingtoenablethisvitallyimportantcommunityfocalpointtobeshowcasedandrespected.
Fundingwasvitalinbringingtheprojecttofruition:
• totalprojectwascostedat$4M;• Councilsecured$750,000inFederalGovernmentfunding;
• Tennisandmulti-purposecourts:boostedbyfundingfromSport&RecreationTasgrantof$80,000,TasCommunityFundgrantof$55,000,andthelocalTennisClubcontributionof$60,000;
• Cenotaph:StateGovernmentgrantof$70,000andCouncil’s$88,000contribution.
Thisprojecttoredeveloptheprecincthasreducedtheduplicationofamenitiesastheexistingoutdoorswimmingpool,tennisandmulti-purposecourtsnowhavedirectaccesstonewchangeroomsandamenities.
ThevisionofCouncilandthecommunityhasprovidedanewmulti-functionfacility,encompassingafunctionroomwiththecapacitytocaterfor100people,meetingroomswithITcapacity,commercialkitchenandinclusivechangerooms.
RedevelopmentoftheCenotaphandcarparkconstructionworksarenowwellunderwayandwillcompletethisprojectin2019/2020.
WithCampbellTown’scentrallocationinthestate,Councilisalreadyreceivingkeeninterestinthismodernfacilityasaconferencevenueandfunctionspace.
Theofficialopeningofthecomplexwasheldon30September2019,withofficialguests:SenatorClaireChandler,BrianMitchellMP(FederalMemberforLyons),theHon.TaniaRattray(MLCMemberforMcIntyre),GuyBarnettMP(MemberforLyons),JenButlerMP(MemberforLyons);Councillorsandguestsinattendance.
� Multi-purposeCourtconstruction
64 Northern Midlands Council | Annual Report 2018/2019
Longford Recreation Ground & Northern Midlands Sports Centre Precincts
Council’svisionforacoordinatedandexpandedsportandrecreationprecinctcomprisinganupgradedsportscentre,upgradedandexpandedrecreationgroundstadiumandfunctionsbuilding,anupgradedovalandanewtrainingfieldbroughtaboutthedevelopmentof:• theNorthernMidlandsHealth,FitnessandSportsCentreMasterPlan;and
• developmentofamasterplan,incollaborationwithLongfordcommunityandsportingorganisations,fortheadjacentLongfordRecreationGround.
LONGFORD RECREATION GROUND UPGRADETheseworkswereundertakenbyCouncil’sinternalbuildingconstructionteam.
Astimulusloanof$1MwasapprovedforimprovementsattheLongfordRecreationGroundanddesignerswereengagedtoprovideanupgradeconceptanddesigntoredeveloptheLongfordRecreationGroundbuildingcomplextoincorporateagroundfacingfunctionroomandtwonewchangeroomstomeetregionalcountryfootballstandards.
Longford’sredevelopedmulti-functionfacilityhascost$2.9Mtodatewhich,togetherwiththestimulusloan,hasmostlybeenCouncilfundedwithfundssecuredfromtheStateGovernmentLevellingofthePlayingFieldGrantProgramof$233,409towardsthecostofthechangeroomsandaCommunitySportandRecreationgrantfromtheStateGovernmentof$80,000.
Theredevelopedfacilityincludesafunctionroom,meetingrooms,upgradedgrandstand,inclusivechangeroomsandamenities,andamagnificentallweatherviewingareaontotheoval.
NORTHERN MIDLANDS SPORTS CENTRETheNorthernMidlandsSportsCentre,builtin1983/1984,isanintegralcomponentofCouncil’ssportandrecreationinfrastructure.TheneedtomoderniseandexpandthefacilityresultedinCouncilcommissioningthedevelopmentofamasterplantoserveasablueprintforthecentre’sstagedredevelopment.
TheNorthernMidlandsCommunitySportsCentreMasterPlanwasadoptedbyCouncilin2015.
StageOnecommencedin2018/2019withthebuildingbeingextendedtoaccommodateanewgym,aerobicsroom,toiletsandchangerooms,andachildcarearea.Amezzaninefloorhasbeeninstalledtoallowforfutureexpansionatanotherlevel.StageOnewillbecompletedduring2019/2020.
� NorthernMidlandsSportsCentre
� CouncilinspectionoftheLongfordRecreation GroundGrandstandupgradeworks
Northern Midlands Council | Annual Report 2018/2019 65
Recreation Ground lightingDuring2018/2019Councilreplacedtheovalfieldlightingwith100luxlightingatEvandale,LongfordandPerthand200luxlightingatCampbellTownatacombinedcostof$1.38million.Councilreceived$0.15millionfundingsupportfromAFLTasmaniatowardthelightingatCampbellTownduetothecentrallocationofthegroundwithinthestate.
Cressy Swimming PoolTheCressySwimmingPoolwasopenedin1965.ASpecialCommitteeofCouncilcomprisinglocalcommunitymembersmanagesthecomplex,withaformalmanagementagreementinplacebetweenCouncilandtheCommittee.
TheCressySwimmingPoolistheonlypublicpoolinthe‘topend’oftheNorthernMidlandsandthusitdrawsitspatronsfromCressy,Longford,PerthandEvandale,andsurroundingfarmingproperties.Thecomplexcomprisesthemainpool,atoddler’spool,changeroomsandtoilets(renovatedin2010),kiosk,officeandagrassedsitting/playarea.
CouncilsecuredaStateGovernmentgrantof$100,000towardstheimplementationoftheswimmingpoolmasterplan.
TheinstallationofaplaygroundwascompletedinMay2019whichwasexternallyfundedbyTasmanianCommunityFundandStrongerCommunitiesProgramme.
InMarch2019,theNationalsinGovernmentmadeafundingcommitmentof$400,000towardthisproject.Documentationtosecurefundshasbeenlodged.
� PerthRecreationGroundlighting
66 Northern Midlands Council | Annual Report 2018/2019
Longford Village Green playground InstalledStageThreeoftheLongfordVillageGreenPlaygroundredevelopment,aninclusive,all-abilitiescarouselandswingseat,withfundingsupportfromTasmanianCommunityFund($29,539),VarietyTasmania($6,000),localcommunitydonations($3,100)andCouncil($7,326).
Perth Early Learning CentreInparallelwiththedevelopmentofthePerthStructurePlanCouncilcollaboratedwiththeDepartmentofEducationandthePerthcommunitytodevelopthePerthCommunityCentreandEarlyLearningPrecinctMasterPlan.
Perth’ssignificantgrowthhasputthecurrentPerthEarlyLearningCentreatcapacityandCouncilsupportedthebusinesscaseforthebuildingofanewcentreandsubsequentlyinDecember2018purchasedagreenfieldsiteoffForeStreetinPerth.
Duringthe2019FederalElection,theCoalitioncommitted$2.6MtobuildanewEarlyLearningCentreinPerth.
Documentationtosecurefundshasbeenlodged.
Perth — Open Space Tree Plantation CorridorDuringthedevelopmentapprovalprocessfortheStateGovernments’PerthLinksRoadproject,Councilconditionedtheapprovaltoincludea20metrewidetreeplantationforthelengthofthe4.5kmcorridortoallowforafuturesharedpathtoconnecttoopenspacewithinthedevelopedareasofPerth.
CouncilnegotiatedwiththeStateGovernmenttohavethecorridorinCouncilownershipandhasbeenresponsibleforthefencingandplanting,whichhascommenced.AfuturesharedpathcorridorhasbeenprovidedforintheplantingdesignandisproposedtoconnecttheopenspacethroughoutPerth,leadingtothemainstreetandSouthEskRiverfrontagereserves.
Ross Village Green Inmid-2016Councilpurchasedavacantblock(5,631m2)with59mstreetfrontagelocatedat33ChurchStreet;andengagedconsultantstodeveloptheRossVillageGreenMasterPlan.Theconsultantswererequiredtoconsultwiththecommunityandconsiderthesiteinrelationtoitslanduse,historicalandsocialcontext.
CouncilsecuredaStateGovernmentinterestfreeloanof$300,000towardtheimplementationoftheVillageGreenmasterplan.WorkcommencedonStage1oftheprojectduringthe2018/2019financialyear(costedat$305,000)andisyettosecurefundingforStage2workscostedatapproximately$370,000.
� LongfordVillageGreenplayground
Northern Midlands Council | Annual Report 2018/2019 67
Council Chambers, LongfordIn2018/2019theupgradeoftheCouncilChambersatLongfordcommenced.ThefirststageoftheupgradeincludedtheentrancetotheCouncilChambers,toprovideanewdisabledaccessandtheconstructionofapubliccarparkatacostof$520,000.
Theaccess,upgradedforecourtandstreetscapinghasimprovedthevisualappearanceandfunctionalityofthebuildingandtheprecinctingeneral.
AtreeplantingprogramtoenhancethestreetscapeofthestreetfrontingtheCouncilOffice,SmithStreet,wasalsoimplementedduringthefinancialyear.
Councilhasincludedinits2019/2020budgetfurtherupgradestotheheritagebuilding,whichincludes:theupgradeofthekitchenandstafffacilitiesandamenities,aswellastheconstructionofaMayoralandCouncillormeetingroom.
Woolmers BridgeTheapplicationforreplacementoftheWoolmersLaneBridgewaslodgedin2016inRoundThreeoftheBridgeRenewalProgram,Councilwassuccessfulinsecuring50%ofthe$3Mtotalcostofreplacement.
ThetenderforthenewbridgewasawardedtoVEC.ConstructionbeganinJanuary2018tobuildthenewbridgeadjacenttotheoldbridgewhichmeantminimaldisruptionforusers.
Thenewtwo-laneconcretebridgereplacesa187m2timberbridgewhichhadreachedtheendofitsusefullifeandrequiredeverincreasingupkeepandmaintenance.WoolmersLaneBridgewasthethirdsignificantandfinaltimberbridgewithintheNorthernMidlandstobereplaced,challengesinthebridgesdesignandtiminghadtobeovercomeduetoproximityofthebridgetotheBrickendonandWoolmersWorldHeritageListedsites.
ThenewWoolmersBridgewasofficiallyopenedon26September2019,withofficialguests:SenatorClaireChandlerandSenatorWendyAskew,inattendancetogetherwithCouncillorsandguests.
� WoolmersBridge
68 Northern Midlands Council | Annual Report 2018/2019
ROAD INFRASTRUCTURE BRIDGES
URBAN STORMWATER/DRAINAGEUndertakespecificstormwater/drainageprojectsasdetailedintheworksprogramincluding:
All areasReplacement of existing cracked asphalt footpath with concrete ONGOING
Campbell TownBartonRoad—Road Reconstruction ACHIEVED
HighStreet—Reconstruction, Verge, Kerb & Gutter ACHIEVED
CressyMainStreet—Concrete Footpath Construction ACHIEVED
EvandaleHighStreet—Reconstruction of Verges, Kerb & Gutter ACHIEVED
LongfordSmithStreet—Concrete Footpath Construction ACHIEVED
HighStreet—Reconstruction of Verge DEFERREDTO2019/2020
HobhouseStreet—Road Reconstruction DEFERREDTO2019/2020
WellingtonStreet—Urban Street Design Improvements ONGOING
TanneryRoad—Entrance/Roundabout Improvements DEFERREDTO2019/2020
BishopsbourneRoad—Road Reconstruction ACHIEVED
Perth OldPuntRoad—Concrete Footpath Construction DEFERREDTO2019/2020
MaryStreetWest—Reconstruction of Verges, Kerb & Gutter ACHIEVED
CompletionofWoolmersLaneMacquarie River (Timber to Concrete abutment) 1130 ACHIEVED
ToomsLakeRoadRossMacquarie River (Concrete abutments) 4619 ACHIEVED
HoneysuckleRoadRossCat Gully Creek, (Concrete abutments) 4733 ACHIEVED
StorysCreekRoadStorys Creek, (Concrete abutments) 1469 DEFERRED
RoyalGeorgeRoadLewis Hill Creek (Concrete abutments) 2380 ACHIEVED
StorysCreekRoadTasmania Creek (Timber abutments) 4000 DEFERRED
BrambletyeRoadEvandaleHorse Paddock Creek 1820 ACHIEVED
BridgeStreetCampbellTown,Un-named Creek (Stone abutments) 5241 ACHIEVED
Wetlands&Basins(Evandale/Longford/Perth) ONGOING
ConstructdiversionstormwaterlinefromPatonStreetBasin ACHIEVED
NewstormwaterlinefromCemeteryReserveinEvandale ACHIEVED
ReplacestormwaterinHighStreetEvandale–BarclayStreettoRussellStreet ACHIEVED
ReplacestormwaterinUnionStreetLongford ACHIEVED
ImprovementstostormwaterinMacquarieandKingstreets,Cressy ACHIEVED
CAPITAL WORKS PROGRAMME 2018–2019
Northern Midlands Council | Annual Report 2018/2019 69
RECREATION, BUILDING & COMMUNITY
ImprovementsatDepot—Longford ACHIEVED
OfficePremises—alterations DEFERREDTO2019/2020
OfficePremises—roofreplacement DEFERREDTO2019/2020
Entrances—statements/beautification:ConaraandAvoca ACHIEVED
AvocaPlayequipment DEFERREDTO2019/2020
Campbell TownRecreationGroundClubroom/amenitiesupgrade ONGOING
RecreationGroundTennisCourts ONGOING
RecreationGroundCenotaphupgrade ONGOING
RecreationGroundelectronicscoreboard ONGOING
RecreationGroundinterchangebenches DEFERREDTO2019/2020
RecreationGroundSite Works (footpaths, power, irrigation etc) ONGOING
CressyRecreationGroundClubroom/amenitiesupgrade DEFERREDTO2019/2020
RecreationGroundDumpPoint,mainextension DEFERRED
PoolSolarBlanketreplacement DEFERRED
Poolimprovementstobedetermined DEFERREDTO2019/2020
EvandaleRecreationGroundAmenitiesupgrade DEFERREDTO2019/2020
RecreationGroundTop Dressing Ground ACHIEVED
RecreationGroundElectronicScoreboard ACHIEVED
CricketPitchimprovements ACHIEVED
RecreationGroundBuildingimprovements—storageshed ACHIEVED
RussellStreetLampPole ACHIEVED
LiffeyHallRoofreplacement DEFERREDTO2019/2020
LongfordRecreationGroundClubrooms,grandstand,amenitiesupgrade ONGOING
Gymextension,LongfordSportsCentre ONGOING
WellingtonStreetCable Bundling DEFERRED
RecreationGroundTop Dressing Ground ACHIEVED
RecreationGroundGrandstand Handrails & Gutter Replacement ACHIEVED
RecreationGroundDual Lane Access/Carpark ONGOING
RecreationGroundStorageShed ACHIEVED
RecreationGroundCricketNetUpgrade ACHIEVED
RecreationGroundElectronicScoreboard ACHIEVED
PublicOpenSpaceStokes Park Area ACHIEVED
VictoriaSquareChristmas Tree Lighting ACHIEVED
BurghleyStreetSports Centre Carpark DEFERREDTO2019/2020
RossVillageGreen ONGOING
PoolChlorinatingSystemUpgrade ACHIEVED
PerthChildcareEntranceShelter DEFERRED
RecreationGroundTopDressingGround DEFERRED
70 Northern Midlands Council | Annual Report 2018/2019
� Caption
REPORTING ON LEGISLATIVE REQUIREMENTS
PUBLIC TENDERS
LIST OF CONTRACTS AWARDED OVER $100,000 excl. GST (Local Government Act)
DESCRIPTION OF CONTRACT PERIOD OF CONTRACT
VALUE OF TENDER AWARDED (EXCL. GST)
BUSINESS NAME (SUCCESSFUL CONTRACTOR)
BUSINESS ADDRESS (SUCCESSFUL CONTRACTOR)
MINUTE REFERENCE
CONTRACT NO.
KerbsideWasteCollection1July2010to30June2019
Urban&ruralfortnightlyrefusecollection
AussieWasteManagement 128MorningtonRoad,Mornington7018 132/10 10/01
KerbsideRecyclingCollection1July2010to1April2020
4,796collections@$1.21 VeoliaEnvironmentalServices POBox431,Rosny7018 133/10 10/02
KerbsideRecyclingProcessing1July2010to1May2019
Tonnescollected@$48.20perTonne
VeoliaEnvironmentalServices POBox431,Rosny7018 134/10 10/03A
CouncilWasteClearance&BinHire1July2018to30June2021
Est$147,435clearance$29,858binhirebutbasedonno.ofclearances
JustWaste POBox499,Prospect7250 101/18 18/03
ManagementofWasteTransferStations1July2016to30June2020
$214,646 JustWaste POBox499,Prospect7250 142/16 16/01
LandUsePlanning&DevelopmentStrategy1November2017to31December2019
$125,765 JohnstonMcGee&Gandy 117HarringtonStreet,Hobart7000 302/17
CampbellTownRecreationGroundClubhouse $3,114,910 VosConstructions 3HudsonFyshDrive,WesternJunction7212 48/18 –
CampbellTownWarMemorialOvalTennisCourtcomplex $355,262 BassetBuildingPtyLtd 231RelbiaRoad,Relbia7258 342/18
HighStreetLongfordStormwaterextension $296,010 J&WSherriffPtyLtd POBox230,Mowbray7250 377/18 –
Purchaseoflandat10NorfolkStreet,Perth $640,909 CassandraSecuritiesPtyLtd 378/18 –
Purchaseoflandat46aClarenceStreet $240,000 PhilipLance&CorneliaMaartieDell 48ClarenceStreet,Perth7300 387/18 –
Fleet61-4wheeldrivetractor $124,202 MidlandsTractorsPtyLtd WellingtonStreet,Longford7301 270/18 1808
Bridge2380RoyalGeorgeRoad,RoyalGeorge $214,918 HudsonCivilProducts POBox316,Prospect7250 271/18 1805
Bridge1820BrambletyeRoad,Evandale $135,698 TasSpan POBox225,Latrobe7207 271/18 1806
Bridge4619ToomsLakeRoad,Ross $291,456 BridgePro POBox3253,Ulverstone7315 271/18 1807
72 Northern Midlands Council | Annual Report 2018/2019
DESCRIPTION OF CONTRACT PERIOD OF CONTRACT
VALUE OF TENDER AWARDED (EXCL. GST)
BUSINESS NAME (SUCCESSFUL CONTRACTOR)
BUSINESS ADDRESS (SUCCESSFUL CONTRACTOR)
MINUTE REFERENCE
CONTRACT NO.
SupplyofReachArmSlashingofRoadsides to30June2019 Bi–AnnualTender MulchManagement 9RangeRoad,Evandale7212 244/17 17/14
SprayingofRoadsidesandFootpaths to30June2019 Bi–AnnualTender SpiderPest&WeedControl POBox329,BeautyPoint7270 244/17 17/15
SprayingofRoadsidesandFootpaths to30June2019 Bi–AnnualTender StornowayCivil POBox196,KingsMeadows7249 244/17 17/15(i)
SupplyandDeliveryofRoadMaintenanceGravel to30June2019 Bi–AnnualTender StornowayCivil POBox196,KingsMeadows7249 244/17 17/16(i)
SupplyandDeliveryofRoadMaintenanceGravel to30June2019 Bi–AnnualTender GradcoPtyLtd POBox290,Newstead7250 244/17 17/16(ii)
SupplyandDeliveryofRoadMaintenanceGravel to30June2019 Bi–AnnualTender BISIndustriesLimited POBox494,AlbionQLD4010 244/17 17/16(iii)
SupplyofBituminousResealingofRoads to30June2019 Bi–AnnualTender CrossroadsCivilContractingPtyLtd 73–79LilydaleRoad,Rocherlea7248 244/17 17/17
ConstructionofConcreteKerbandGutter&Crossovers to30June2019 Bi–AnnualTender CrossroadsCivilContractingPtyLtd 73–79LilydaleRoad,Rocherlea7248 244/17 17/18(a)
ConstructionofConcreteKerbandGutter&Crossovers to30June2019 Bi–AnnualTender PJContracting POBox31,MowbrayHeights7248 244/17 17/18(b)
ConstructionofAsphaltFootpaths&Driveways to30June2019 Bi–AnnualTender NorthsealPtyLtd 5ARayStreet,Invermay7248 244/17 17/19
ConstructionofConcreteFootpaths&Driveways to30June2019 Bi–AnnualTender CrossroadsCivilContractingPtyLtd 73–79LilydaleRoad,Rocherlea7248 244/17 17/20(a)
ConstructionofAggregateConcreteFootpaths&Driveways
to30June2019 Bi–AnnualTender EliteConcrete 96DevonHillsRoad,Perth7300 244/17 17/20(b)
ConstructionofConcreteFootpaths&Driveways to30June2019 Bi–AnnualTender EliteConcrete 96DevonHillsRoad,Perth7300 244/17 17/20(c)
DESCRIPTION OF CONTRACT PERIOD OF CONTRACT
VALUE OF TENDER AWARDED (EXCL. GST)
BUSINESS NAME (SUCCESSFUL CONTRACTOR)
BUSINESS ADDRESS (SUCCESSFUL CONTRACTOR)
MINUTE REFERENCE
CONTRACT NO.
Noitemduring2018/2019
BIENNIAL CONTRACTS FOR INFORMATION ONLY
NON APPLICATION OF PUBLIC TENDER POLICY
Northern Midlands Council | Annual Report 2018/2019 73
ATTENDANCE AT COUNCIL AND COMMITTEE MEETINGS BY COUNCILLORS (LOCAL GOVERNMENT ACT 1993)
Pleaserefertotableonpage15fordetailsofattendance.
ELECTED MEMBER ALLOWANCES AND EXPENSES (LOCAL GOVERNMENT ACT 1993)
During2018/2019CouncilprovidedallowancesandreimbursementsofallreasonableexpensestotheMayor,DeputyMayorandCouncillors.Thetotalamountofthesepaymentswas$206,109(comparedto$200,100thepreviousyear).Pleaserefertopage15forfurtherbreakdownofallowanceandexpensepayments.
REMUNERATION STATEMENT (LOCAL GOVERNMENT ACT 1993)
TheremunerationstatementisprovidedforthosepositionsdesignatedbyCouncilasseniorpositionsundertheAct,andincludessalarypayableplusanyotherallowancesorbenefitspaidorprovidedforthebenefitoftheemployee.ReportedinFinancialStatements,seeNote25(iii).
GRANTS & BENEFITS (LOCAL GOVERNMENT ACT 1993)
During2017/2018Councildonationsundersection77aslistedonpages27and43,andrateremissionsunderitsRateRemissionPolicytotalling$51,598(2017/2018$49,881);plus$Nil(2017/2018$Nil)underPolicy–RateIncentiveforNewDevelopment.
DONATION OF LAND (LOCAL GOVERNMENT ACT 1993)
During2017/2018Councilmadenodonationsoflandundersection177.
PUBLIC INTEREST DISCLOSURES STATEMENT(PUBLIC INTEREST DISCLOSURES ACT 2012)
CopiesofthecurrentPublic Interest Disclosures Act 2012 proceduresoftheNorthernMidlandsCouncilcanbeaccessedonCouncil’swebsiteatwww.northernmidlands.tas.gov.auorinhardcopyattheCouncilofficessituatedat13SmithStreet,Longford.
Duringthe2018/2019financialyear,thefollowingdisclosuresweremadetotheNorthernMidlandsCouncilwithregardtothePublic Interest Disclosures Act 2012.
74 Northern Midlands Council | Annual Report 2018/2019
LEGISLATIVE REQUIREMENT NUMBER TYPE OF DISCLOSURE
NumberandtypesofdisclosuresmadetoNorthernMidlandsCouncilduringtheyearthattheNorthernMidlandsCouncildeterminestobepublicinterestdisclosures.
Nil N/A
NumberofdisclosuresdeterminedbytheNorthernMidlandsCounciltobepublicinterestdisclosuresthatitinvestigatedduringtheyear.
Nil N/A
NumberandtypesofdisclosedmattersreferredtotheNorthernMidlandsCouncilbytheOmbudsmanduringtheyear.
Nil N/A
NumberandtypesofdisclosedmattersreferredduringtheyearbytheNorthernMidlandsCounciltotheOmbudsman.
Nil N/A
NumberandtypesofinvestigationsofdisclosedmatterstakenoverbytheOmbudsmanfromtheNorthernMidlandsCouncilduringtheyear.
Nil N/A
NumberandtypesofdisclosedmatterstheNorthernMidlandsCouncilhasdecidednottoinvestigateduringtheyear.
Nil N/A
Numberandtypesofdisclosedmattersthatweresubstantiatedoninvestigationandtheactiontakenoncompletionoftheinvestigation.
Nil N/A
Duringthe2017/2018financialyeartheOmbudsmanrecommendedCouncilreviewitsprocedures,inaccordancewiththemodelproceduresprovidedbytheOmbudsman,thisprocesswascommencedpriortotheconclusionofthatfinancialyear.
ENVIRONMENTAL HEALTH STATEMENT(PUBLIC HEALTH ACT 1997 AND THE FOOD ACT 2003)
Counciliscommittedtoprotectandpromotethehealthandwellbeingofitscommunitiesandspent$72,359onhealthprojectsin2018/2019(2017/2018$84,816).Pleaserefertopage45forfurtherdetailsofCouncil’sCommunityHealthReport.
RIGHT TO INFORMATION(RIGHT TO INFORMATION ACT 2009)
TheRight to Information ActprovidestheopportunityforpublicaccesstoCouncildocuments.
TheActestablishesalegallyenforceablerightforthecommunitytoaccessinformationindocumentformheldbyCouncil.CouncilreceivedoneapplicationundertheRighttoInformationfortheperiod1July2018to30June2019.RequestsforaccesstoinformationundertheRighttoInformationActshouldbeinwriting.RequestsaretobelodgedwiththeGeneralManagerattheCouncilChambersinLongford.EnquiriesregardingRighttoInformationcanalsobemadebytelephone.
� LongfordVillageGreen
Northern Midlands Council | Annual Report 2018/2019 75
Customer Requests 2018/19CODE OF CONDUCT COMPLAINTS(LOCAL GOVERNMENT ACT 1993)
TherequirementsinrelationtoCodeofConduct,ComplaintsandComplaintResolutionarestipulatedinDivision3AoftheLocal Government Act.One(1)CodeofConductcomplaintwasupheldwithappropriateactionbeingtakenduring2018/2019(Nil2017/2018).
CUSTOMER REQUESTS/COMPLAINTS RECEIVED(LOCAL GOVERNMENT ACT 1993)
Inaccordancewiths339F(5)oftheLocal Government Act,thegeneralmanageristoprovidethecouncilwithareportatleastonceayearofthenumberandnatureofcomplaintsreceived.
Atotalof265customerrequestswererecordedbyCouncilintheperiod,thefollowinggraphdepictsthenatureoftherequests.
IntegrityCommissionadvisedthatnocomplaintswerereceivedinthe2018/2019yearinrelationtotheNorthernMidlandsCouncil.
83.02%Works
0.38%Waste3.02% AnimalControl
1.89% Governance1.51% CorporateServices
0.38% CommunityServices
9.81% Building&Planning
76 Northern Midlands Council | Annual Report 2018/2019
� OldCampbellTownWarMemorialOvalgrandstand(demolishedtomakewayfortheWarMemorialOvalfacilityupgrades)
UNDERSTANDING THE FINANCIAL REPORT
WHAT ARE THE FINANCIAL STATEMENTS?
Thefourmajordisclosures,whichare• StatementofComprehensiveIncome• StatementofFinancialPosition• StatementofChangesinEquity• StatementofCashFlows
Where the dollars come from (operating income) $18,995,719
Where the dollars go (operating expenditure) $18,014,473
57% RateRevenue
4% Interest
20%Grants
3% Other
10%UserCharges
1% OtherReimbursements
26% EmployeeBenefits
8% Other
5% GovernmentLeviesandCharges
25% MaterialsandServices
32% DepreciationandAmortisation
2% InterestExpenseStimulusLoans
arecollectivelyknownasthe“FinancialStatements”,thesedocumentsprovideanoverviewofthetransactionsthatoccurredduringtheyearandasummaryofthefinancialstatusofCouncilattheendoftheyear.
Council prepares its financial statements in accordance with the Australian Accounting Standards, using particular terminology and conventions that may not be familiar to some readers. This overview may assist readers understand outcomes stated in the financial statements.
2% ReimbursementInterestExpenseStimulusLoans
3% InvestmentRevenuefromWaterCorporation
2% NetLoss/(Gain)onDisposalofProperty,Infrastructure,PlantandEquipment
78 Northern Midlands Council | Annual Report 2018/2019
THE FINANCIAL STATEMENTS
The Statement of Comprehensive IncomeTheStatementofComprehensiveIncomeprovidesinformationrelatingto:• thesourcesofrevenueearned(wherethemoneycomesfrom);and
• theoperatingexpensesincurred(whatthemoneyhasbeenspenton);
duringthefinancialyear.
Itshouldbenotedthattheexpensesrelateonlytotheoperatingexpenses(orday-to-dayexpenses)anddonotincludecostsassociatedwiththepurchaseorbuildingofassets.
Althoughthecostsofthepurchaseorbuildingofassetsarenotincludedintheseoperatingexpenses,provisionforthecostofthedepreciationoftheseassetsisincludedintheoperatingexpenses.
Thedepreciationexpenseistheequivalentportionoftheassetthathasbeenusedduringthefinancialyear.TheinclusionofdepreciationontheseassetsintheoperatingexpensesensuresthatCouncilmatchesthecostoftheassettotheperiodinwhichitisusedratherthanjusttheperiodinwhichitwasconstructedorpurchased.
Itisimportanttonotethe Surplus (Deficit)fortheperiod.
Statement of Financial PositionTheStatementofFinancialPositionprovidesasnapshotofCouncil’sfinancialsituationattheendofthefinancialyear(30June).Itreflects• whatCouncilowns–itsassets;and• whatCouncilowes–itsliabilities.
ThebottomlineoftheStatementofFinancialPositionisNetAssets(Liabilities).ThisreflectsthenetworthofCouncil.TheAssetsandLiabilitiesareseparatedintoCurrentandNon-Currentcategories,CurrentAssetsandLiabilitiesarethosewhichwillfallduewithinthenextreportingperiod(thenextfinancialyear).
Current & Non-Current AssetsCurrent&Non-CurrentAssetsinclude:• Cash&cashequivalents–cashheldinthebank,pettycashandcashinvestmentssuchastermdeposits.
• Trade&otherReceivables–moniesowedtoCouncilbyratepayersandotherswhohavebeeninvoicedorbilled.
• OtherAssets–inventoryandserviceswhichhavebeenprepaidandmoniesowedtoCouncilforwhichnoinvoicehadbeenraisedasat30June.
• PropertyheldforResale–landwhichCouncilplanstosellinthenextfinancialyear.
• Property,Plant&Infrastructure–land,buildings,roads,vehicles,equipment,etc.whichhavebeenaccumulatedbyCouncil.
• InvestmentsandLoans(receivable).
Council Assets
$Million
Council Liabilities
$Million
FinancialYear
07/08–
2
4
6
8
10
12
08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18
FinancialYear
–
50
100
150
200
250
300
350
07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19
18/19
Northern Midlands Council | Annual Report 2018/2019 79
Current & Non-Current LiabilitiesCurrent&Non-CurrentLiabilitiesinclude:• TradeandotherPayables–peopleandbusinessestowhomCouncilowesmoney.
• TrustFundsandDeposits–moneyheldbyCouncilonbehalfofthirdparties.
• Provisions(EmployeeBenefits)–theaccruedvalueofLongServiceLeaveandAnnualLeavepayabletoemployeesofCouncil.
• InterestBearingLiabilities–theoutstandingbalanceCouncilowesonbankloansoronanybankoverdraft.Currentborrowingsrepresenttheamounttoberepaidinthenextfinancialyear.
Net AssetsThistermdescribesthedifferencebetweenthevalueofTotalAssetsandTotalLiabilitiesandrepresentsthenetworthofCouncilasat30June.
Total Property, Plant and Infrastructure Asset Value
17/18
FinancialYear
$Million
07/08–
50
100
150
200
250
300
08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17
2018/2019 Assets Purchased, Constructed and/or Received $10,558,086
17.9% Roads
6.3% Fleet
1.7% FurnitureandOfficeEquipment
16.1% Land,BuildingsandHeritage
35.1% Bridges
7.4% Stormwater
0.2% LandUnderRoads
15.3%PlantandEquipment
Ratepayer EquityThisisthetermusedtodescribethecomponentsoftheNetAssets,whichare:• AccumulatedSurplus–thevalueofallnetassets,otherthantheAssetRevaluationReserveandOtherReserves(listedbelow),whichhavebeenaccumulatedovertime.
• AssetRevaluationReserve–thedifferencebetweenthepreviouslyrecordedvalueofassetsandtheircurrentvaluations.
• OtherReserves–FundsthathaverestrictionsplacedontheiruseandarenotreadilyavailableforusebyCouncil.
Council Equity
FinancialYear
$Million
07/08–
50
100
150
200
250
300
350
08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18
18/19
18/19
80 Northern Midlands Council | Annual Report 2018/2019
Statement of Changes in EquityDuringthecourseoftheyearthevalueswhichmakeupEquitycanchange.Thisstatementshowsthevaluesofsuchchangesandhowthesechangesarose.
Themainreasonsforachangeinequitystemfrom:• the“Surplus(Deficit)”fromoperations,describedintheStatementasSurplus(Deficit)fromcontinuingoperations;
• theuseofmoniesfromCouncil’sreserves;• revaluationofassets-thistakesplaceonaregularbasisandwhenexistingassetsaretakenupinthebooksforthefirsttime.
Statement of Cash FlowsTheStatementofCashFlowssummarisescashpaymentsandcashreceiptsfortheyear.ThevalueinthisStatementmaydifferfromthoseshownintheIncomeStatementbecausetheIncomeStatementispreparedonanaccrualaccountingbasis.Council’scasharisesfrom,andisusedin,threemainareas:
Cash Flows from Operating Activities• Payments(outflows)–allcashpaidbyCouncilfromitsbankaccounttostaff,creditorsandotherpersons,butdoesnotincludeanycostsassociatedwiththecreationofanyassets.
• Receipts(inflows)–allcashreceiptsarisingfromthegeneraloperationsofCouncil.Itincludesrates,generaltradingsalesanddebtors,grantsandinterestearnings,butdoesnotincludecashfromthesaleofanyassets.
Cash Flows from Investing ActivitiesTheaccountingtermInvestingActivitiesrelatestotheconstructionandpurchaseoffixedassets(outflows)andsaleofassets(inflows)suchasland,buildings,equipmentandotherlong-termrevenueproducingassets.
Cash Flows from Financing Activities Thisiswherethereceiptandrepaymentofborrowedfundsarerecorded.
ThebottomlineoftheStatementofCashFlowsistheCashattheEndoftheFinancialYear.ThisshowsthecashpositionofCounciltomeetitsdebtsandotherliabilities.
Notes to the AccountsTheNotesareaveryimportantandinformativesectionofthereport.TheAustralianAccountingStandardsarenotprescriptiveinalotofissues.Therefore,toenablethereadertounderstandthebasisonwhichthevaluesshownintheStatementsareestablisheditisnecessarytoprovidedetailsofCouncil’saccountingpolicies.ThesearedescribedinNote1.
Apartfromtheaccountingpolicies,theNotesalsogivedetailsbehindmanyofthesummaryfigurescontainedintheStatements.TheNotenumbersareshownbesidetherelevantitemsintheStatementofComprehensiveIncome,StatementofFinancialPositionandtheStatementofCashFlows.
WhereCouncilwishestodiscloseotherinformationwhichcannotbeincorporatedintotheStatementsthenthisinformationisshowninthefollowingNotes.OtherNotes,include:• thecostofthevariousfunctionsofCouncil;• thebreakdownofexpenses,revenues,reservesandotherassets;
• contingentassetsandliabilities;• transactionswithpersonsrelatedtoCouncil;and• financialperformanceindicators.
TheNotesshouldbereadatthesametimeas,andtogetherwith,theotherpartsoftheFinancialReporttohaveaclearunderstandingoftheaccounts.
CertificationTheCertificationoftheAccountsismadebytheGeneralManagerthat,inhisopinion,theFinancialStatementsmetallthestatutoryandprofessionalreportrequirements.
Auditor General’s ReportTheIndependentAuditReportprovidesthereaderwithanexternalindependentopinionoftheFinancialStatements.ItconfirmsthattheFinancialReporthasbeenpreparedinaccordancewithrelevantlegislationandprofessionalstandardsandthatitisafairrepresentationofthefinancialaffairsofCouncil.
Northern Midlands Council | Annual Report 2018/2019 81
� RossTownHall
� EvandaleDoctor’sSurgeryservingthecommunity
FINANCIAL REPORT
CONTENTS
STATEMENT OF COMPREHENSIVE INCOME 4
STATEMENT OF FINANCIAL POSITION 4
STATEMENT OF CHANGES IN EQUITY 5
STATEMENT OF CASH FLOWS 6
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT 7
NOTE 1 7
INTRODUCTION 7SIGNIFICANT ACCOUNTING POLICIES 7(a) BASIS OF ACCOUNTING 7(b) ADOPTION OF NEW AND AMENDED ACCOUNTING STANDARDS 7(c) THE LOCAL GOVERNMENT REPORTING ENTITY 8(d) REVENUE RECOGNITION 8(e) EXPENSE RECOGNITION 9(f) RECOGNITION AND MEASUREMENT OF ASSETS 9(g) CASH AND CASH EQUIVALENTS 10(h) INVENTORIES 11(i) INVESTMENT IN WATER CORPORATION 11(j) INVESTMENT TERM DEPOSITS 11(k) TRUST FUNDS 11(l) EMPLOYEE BENEFITS 11
(m) ACCRUALS / PREPAYMENTS 11(n) NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES 11(o) SIGNIFICANT BUSINESS ACTIVITIES 11(p) LEASES 12(q) TAXATION 12(r) BUDGET FIGURES 12(s) CONTINGENT ASSETS, CONTINGENT LIABILITIES AND COMMITMENTS 12(t) ROUNDING 12(u) PENDING ACCOUNTING STANDARDS 12
NOTE 2 14
(a) FUNCTIONS / ACTIVITIES OF THE COUNCIL 14(b) COMPONENT FUNCTIONS / ACTIVITIES 14
NOTE 3 15
GRANT REVENUE 15
NOTE 4 16
INVESTMENT REVENUE FROM WATER CORPORATION 16
NOTE 5 16
GAIN / (LOSS) ON SALE AND DISPOSAL OF FIXED ASSETS 16
NOTE 6 17
EMPLOYEE BENEFITS 17
NOTE 7 17
MATERIALS AND SERVICES 17
NOTE 8 18
DEPRECIATION AND AMORTISATION EXPENSE 18
NOTE 9 18
OTHER EXPENSES 18
NOTE 10 18
CASH AND CASH EQUIVALENTS AND SHORT TERM INVESTMENTS 18
NOTE 11 19
TRADE AND OTHER RECEIVABLES 19
NOTE 12 19
INVENTORY 19
NOTE 13 19
CAPITAL WORKS IN PROGRESS 19
NOTE 14 20
PROPERTY, PLANT AND INFRASTRUCTURE 20
NOTE 15 22
INVESTMENT IN WATER CORPORATION 22
NOTE 16 22
TRADE AND OTHER PAYABLES 22
NOTE 17 23
PROVISIONS 23
2 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 18 23
LOANS PAYABLE AND RECEIVABLE 23
NOTE 19 24
CAPITAL EXPENDITURE COMMITMENTS 24
NOTE 20 24
CONTINGENT LIABILITIES 24
NOTE 21 24
AUDITORS REMUNERATION 24
NOTE 22 24
SPECIAL COMMITTEES AND RIVERWORKS DISTRICT 24(a) Special Committees 24(b) Riverworks District 25
NOTE 23 26
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS 26
NOTE 24 26
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES 26
NOTE 25 26
RELATED PARTY TRANSACTIONS 26
NOTE 26 29
FINANCIAL INSTRUMENTS 29(a) Accounting Policy, Terms and Conditions 29(b) Financing Arrangements 30(c) Financial Risk Exposure and Mitigation 30(d) Expected Credit Loss 32(e) Sensitivity Disclosure Analysis 32(f) Categories of Financial Assets and Liabilities 33(g) Analysis of Unimpaired Financial Assets 33(h) Fair Value Hierarchy 33
NOTE 27 34
MANAGEMENT INDICATORS 34(a) Financial Management Indicators 34(b) Asset Management Indicators 35
NOTE 28 36
FAIR VALUE MEASUREMENT 36(a) Fair Value Hierarchy 36(b) Highest and Best Use 37(c) Valuation Techniques and Significant Inputs Used to Derive Fair Values 37(d) Changes in Recurring Level 3 Fair Value Measurements 38(e) Valuation Processes 38(f) Assets and Liabilities Not Measured at Fair Value but for which Fair Value is Disclosed 38
STATEMENT BY GENERAL MANAGER 39
INDEPENDENT AUDIT REPORT 39
� BannerPolesatLongford’sVillageGreen
Northern Midlands Council | Annual Financial Report: 30 June 2019 3
STATEMENT OF FINANCIAL POSITIONas at 30 June 2019
NOTE 2019$
2018$
Assets
Current Assets
CashandCashEquivalents 10 3,327,064 5,313,517
ShortTermInvestments 10 6,914,434 8,869,496
TradeandOtherReceivables 11 1,146,712 721,855
Inventory 12 21,363 27,375
Total Current Assets 11,409,573 14,932,243
Non–Current Assets
CapitalWorkinProgress 13 6,920,764 3,179,256
Property,Plant&Infrastructure 14 263,007,731 251,302,491
InvestmentinWaterCorporation 15 46,295,474 40,461,498
InvestmentTermDeposits 6,550,000 6,550,000
LoanReceivable 18 1,900,000 1,900,000
Total Non–Current Assets 324,673,969 303,393,245
Total Assets 336,083,542 318,325,488
Liabilities
Current Liabilities
Trade&OtherPayables 16 2,042,736 1,465,685
Provisions 17 1,148,625 1,059,075
Total Current Liabilities 3,191,361 2,524,760
Non–Current Liabilities
Provisions 17 74,242 109,903
LoanPayable 18 8,470,000 8,470,000
Total Non–Current Liabilities 8,544,242 8,579,903
Total Liabilities 11,735,603 11,104,663
Net Assets 324,347,939 307,220,825
Equity
AccumulatedSurplus 164,496,278 160,621,218
Reserves 159,851,661 146,599,607
Total Ratepayer Equity 324,347,939 307,220,825
Theabovestatementoffinancialpositionistobereadinconjunctionwiththenotestoandformingpartofthefinancialreport.
STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2019
NOTE 2019$
2018$
2019 (BUDGETED)
$
IncomeRecurrent IncomeRateRevenue 10,883,045 10,395,067 10,756,672Grants 3 3,869,114 3,680,241 3,797,515UserCharges 1,968,554 1,604,653 1,890,604Interest 786,592 689,799 858,491ReimbursementInterestExpenseStimulusLoans 272,007 214,902 272,007OtherReimbursements 211,835 145,755 118,516InvestmentRevenuefromWaterCorporation 4 468,000 702,000 468,000Other 536,572 348,782 61,587
18,995,719 17,781,199 18,223,392 Capital IncomeCapitalgrantsreceivedspecificallyforneworupgradedassets 3 2,842,332 2,388,852 3,125,255
Contributionofnon–monetaryassets 14 51,480 984,788 523,827 2,893,812 3,373,640 3,649,082
Total Income 21,889,531 21,154,839 21,872,474
ExpensesEmployeeBenefits 6 4,753,395 4,823,745 5,339,860Materials&Services 7 4,521,208 4,372,483 5,041,269Depreciation&Amortisation 8 5,701,007 5,550,154 5,400,473GovernmentLevies&Charges 967,571 760,024 871,921Netloss/(gain)ondisposalofProperty,Infrastructure,Plant&Equipment 5 373,207 860,569 520,505
InterestExpenseStimulusLoans 272,007 214,902 272,007Other 9 1,426,078 1,132,284 610,504Total Expenses 18,014,473 17,714,161 18,056,539 Surplus/(Deficit) 3,875,058 3,440,678 3,815,935 Other comprehensive incomeItems that will not be reclassified to surplus or deficitNetassetrevaluationincrement/(decrement) 7,418,079 5,607,454Fairvalueadjustmentonequityinvestment–InvestmentinWaterCorporation 15 5,833,976 –Items that may be reclassified to surplus or deficitFairvalueadjustmentonavailableforsaleassets–InvestmentinWaterCorporation – 518,419
13,252,055 6,125,873 Comprehensive Result 17,127,113 9,566,551
Theabovestatementofcomprehensiveincomeistobereadinconjunctionwiththenotestoandformingpartofthefinancialreport.
4 Northern Midlands Council | Annual Financial Report: 30 June 2019
STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2019
TOTAL ACCUMULATED SURPLUS ASSET REVALUATION RESERVES FAIR VALUE RESERVES
2019$
2018$
2019$
2018$
2019$
2018$
2019$
2018$
BeginningoftheYear 307,220,825 297,654,274 160,621,218 157,180,540 149,535,754 143,928,300 (2,936,147) (3,454,566)
ComprehensiveResult 17,127,113 9,566,551 3,875,058 3,440,678 7,418,079 5,607,454 5,833,976 518,419
Ratepayer Equity at the end of the year 324,347,938 307,220,825 164,496,276 160,621,218 156,953,833 149,535,754 2,897,829 (2,936,147)
Theabovestatementofchangesinequityistobereadinconjunctionwiththenotestoandformingpartofthefinancialreport.
Northern Midlands Council | Annual Financial Report: 30 June 2019 5
STATEMENT OF CASH FLOWS for the year ended 30 June 2019
Theabovestatementofcashflowsistobereadinconjunctionwiththenotestoandformingpartofthefinancialreport.
CASH FLOWS FROM OPERATING ACTIVITIES NOTE 2019$
2018$
OutflowsEmployeeCosts (4,686,240) (4,644,813)Materials&Services (5,617,949) (5,063,414)LeviesPaid (967,571) (760,024)Other (1,029,341) (663,755)InflowsReceiptsfromRatepayers 10,510,563 9,842,587GovernmentGrants 4,013,871 3,356,774UserCharges 1,678,948 2,575,538InterestReceived 783,880 641,844InvestmentRevenuesfromWaterCorporation 468,000 702,000Other 748,408 494,536ReceiptsfromAustralianTaxationOffice 1,364,988 992,427Net Cash Provided by Operating Activities 23 7,267,557 7,473,700
CASH FLOWS FROM INVESTING ACTIVITIESOutflowsPaymentforProperty,Plant&Equipment (14,248,114) (8,549,090)PaymentsforPurchaseofFinancialInvestments – (6,550,000)TransfertoInvestments – (3,188,869)InflowsCapitalGrants 2,842,332 2,388,852ProceedsfromSaleofFixedAssets 196,709 244,291TransferfromInvestments 1,955,062 –Net Cash Provided By (used in) Investing Activities (9,254,011) (15,654,816)
CASH FLOWS FROM FINANCING ACTIVITIESOutflowsInterestPaidStimulusLoans (272,007) (148,776)InflowsReimbursementofInterestExpenseStimulusLoans 272,007 148,776ProceedsfromInterestBearingLoans&Borrowings 24 – 6,570,000Net Cash Provided By (used in) Financing Activities – 6,570,000
Net Increase/(Decrease) in Cash and Cash Equivalents for the Period (1,986,454) (1,611,116)Cash and Cash Equivalents at the Commencement of the Period 5,313,517 6,924,633Net Cash and Cash Equivalents at the End of the Reporting Period 10 3,327,063 5,313,517
6 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT for the year ended 30 June 2019
NOTE 1
INTRODUCTION(a) TheNorthernMidlandsCouncilwasestablishedon2ndofApril
1993andisabodycorporatewithperpetualsuccessionandacommonseal.Council’smainofficeislocatedat13SmithStreetLongfordTasmania.
(b) ThepurposeoftheCouncilisto:
• provideforthepeace,orderandgoodgovernmentinthemunicipality;
• topromotethesocial,economicandenvironmentalviabilityandsustainabilityofthemunicipalarea;
• toensurethatresourcesareusedefficientlyandeffectivelyandservicesareprovidedinaccordancewiththeBestValuePrinciplestobestmeettheneedsofthelocalcommunity;
• toimprovetheoverallqualityoflifeofpeopleinthelocalcommunity;
• topromoteappropriatebusinessandemploymentopportunities;
• toensurethatservicesandfacilitiesprovidedbytheCouncilareaccessibleandequitable;
• toensuretheequitableimpositionofratesandcharges;and• toensuretransparencyandaccountabilityinCouncil
decisionmaking.
SIGNIFICANT ACCOUNTING POLICIESTheprincipalaccountingpoliciesadoptedinthepreparationofthefinancialreportaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.
(a) BASIS OF ACCOUNTING Thesefinancialstatementsareageneralpurposefinancial
reportthatconsistsoftheStatementofComprehensiveIncome,StatementofFinancialPosition,StatementofChangesinEquity,StatementofCashFlows,andnotesaccompanyingthesefinancialstatements.ThegeneralpurposefinancialreportcomplieswithAustralianAccountingStandards,otherauthoritativepronouncementsoftheAustralianAccountingStandardsBoard(AASB),andtheLocalGovernmentAct1993(LGA1993)(asamended).Thisfinancialreporthasbeenpreparedontheaccrualandgoingconcernbasis.
AllamountsarepresentedinAustraliandollarsandunlessstatedroundedtothenearestdollar.
Thisreporthasbeenpreparedunderthehistoricalcostconvention,exceptwherespecificallystatedinNotes14,15and17.
Unlessotherwisestated,allaccountingpoliciesareconsistentwiththoseappliedintheprioryear.Whereappropriate,comparativefigureshavebeenamendedtoaccordwithcurrentpresentation,anddisclosurehasbeenmadeofanymaterialchangestocomparatives.
AllentitiescontrolledbyCouncilsuchasSpecialCommitteesofManagementhavebeenincludedinthisfinancialreport.AlltransactionsbetweentheseentitiesandCouncilhavebeeneliminatedinfull.
Managementisrequiredtomakejudgements,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstance,theresultsofwhichformthebasisofmakingthejudgements.Actualresultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
Councilhasmadenoassumptionsconcerningthefuturethatmaycauseamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextreportingperiod.JudgementsmadebyCouncilthathavesignificanteffectsontheFinancialReportaredisclosedintherelevantnotesasfollows:
Fair Value of Property Plant & Infrastructure Assumptionsandjudgementsareutilisedindetermining
thefairvalueofCouncil’sproperty,plantandinfrastructureincludingusefullivesanddepreciationrates.TheseassumptionsarediscussedinNote1(f)andNote28.
Employee entitlements AssumptionsareutilisedinthedeterminationofCouncil’s
employeeentitlementprovisions.TheseassumptionsarediscussedinNote1(l).
Investment in water corporation AssumptionsutilisedinthedeterminationofCouncil’s
valuationofitsinvestmentinTasWaterarediscussedinNote1(i)andinNote15.
(b) ADOPTION OF NEW AND AMENDED ACCOUNTING STANDARDS(i) AASB 9 Financial Instruments Thisstandardreplacestheexistingstandard,AASB139:
FinancialInstruments:RecognitionandMeasurementandrevisesclassification,measurementanddisclosureoffinancialassetsandliabilities.Itreducesthenumberofcategoriesforfinancialassetsandsimplifiesthemeasurementchoices,includingtheremovalofimpairmenttestingofassetsmeasuredatfairvalue.ClassificationoffinancialassetsisdeterminedbyCouncil’sbusinessmodelforholdingtheparticularassetanditscontractualcashflows.
Councilhasappliedthisstandardfrom1July2018usingaretrospectiveapproachwithcumulativecatch-up.ThisdoesnotrequireCounciltorestatecomparativefigures,butdoesrequirethepresentationofbothqualitativeandquantitativedisclosuresforaffecteditems,alongwithacorrespondingadjustmenttotheopeningbalanceofAccumulatedSurplusesfortransitionaleffectsofre-measurement.
Northern Midlands Council | Annual Financial Report: 30 June 2019 7
NOTE 1(b) ADOPTION OF NEW AND AMENDED ACCOUNTING STANDARDS (continued)
TheaffectofadoptingAASB9hasresultedinnoadjustmentstoequitybutthefinancialassetshavebeenreclassifiedintooneofthefollowingcategories.TheclassificationsareprimarilybasedonCouncil’sbusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Themaineffectsresultingfromreclassificationareasfollows:
• TradeandOtherReceivables-classifiedas‘LoansandReceivables’asat30June2018,theseareheldtocollectcontractualcashflowsandgiverisetocashflowsrepresentingsolelypaymentsofprincipalandinterest.Theseareclassifiedandmeasuredasfinancialassetsatamortisedcostbeginning1July2018.
• InvestmentinWaterCorporation-classifiedasan‘Available-For-Sale’financialassetasat30June2018.AsCouncildoesnotholdthisequityinvestmentfortradingpurposes,ithasmadeanirrevocableelectionforthisequityinstrumenttopresentanysubsequentchangesinfairvalueinOtherComprehensiveIncome.Underthisapproachonlydividendsarerecognisedinprofitorloss.Council’sInvestmentinWaterCorporationisclassifiedandmeasuredasan‘EquityInstrumentatfairvaluethroughOtherComprehensiveIncome’beginning1July2018.
• Councildidnotdesignateanyfinancialassetsasatfairvaluethroughprofitorloss.
• ShorttermdepositswithinCashandCashEquivalents-classifiedas‘HeldtoMaturityInvestments’andmeasuredasFinancialAssetsat‘AmortisedCost’beginning1July2018
• CouncilhasnotdesignatedanyFinancialLiabilitiesatfairvaluethroughprofitorloss.TherearenochangesintheclassificationandmeasurementforCouncil’sfinancialliabilities.
TheadoptionofAASB9hasfundamentallychangedCouncil’saccountingforimpairmentlossesforfinancialassetsbyreplacingAASB139’sincurredlossapproach,withaforward-lookingexpectedcreditloss(ECL)approach.AASB9requiresCounciltorecogniseanallowanceforECL’sforallfinancialassetsnotheldatfairvaluethroughprofitorloss.
OnadoptionofAASB9,CouncilhasrecognisednoadditionalimpairmentsonTradeandOtherReceivables.
(c) THE LOCAL GOVERNMENT REPORTING ENTITY AllfundsthroughwhichCouncilcontrolsresourcestocarry
outitsfunctionshavebeenincludedinthefinancialreport.
IntheprocessofreportingontheNorthernMidlandsCouncilasasingleunit,alltransactionsandbalancesbetweenthosefunds(e.g.loansandtransfers)havebeeneliminated.Therecordingoftransactionsandbalancesforinternalborrowingshasbeeneliminated.
(d) REVENUE RECOGNITION Revenueismeasuredatthefairvalueoftheconsideration
receivedorreceivable.
Revenueismeasuredonmajorincomecategoriesasfollows:
(i) Rates, grants and contributions Rates,grants,donationsandothercontributions(including
developercontributions)arerecognisedasrevenueswhenCouncilobtainscontrolovertheassetscomprisingthesereceipts.
Controloverassetsacquiredfromratesisobtainedatthecommencementoftheratingperiodor,whereearlier,uponreceiptoftherates.
Controlovergrantedassetsisnormallyobtainedupontheirreceiptoruponpriornotificationthatagranthasbeensecured.
DonationsandothercontributionsthatarenotsubjecttoaccompanyingconditionsthattheybeexpendedinaparticularmannerorforaparticularpurposearerecognisedasrevenueinthereportingperiodwhenCouncilobtainscontrolovertheassetscomprisingthecontributionsanddonations.
Non-monetarycontributions(includingdevelopercontributions)withavalueinexcessoftherecognitionthresholds,arerecognisedasrevenueandasnon-currentassets.Non-monetarycontributionsbelowthethresholdsarerecordedasrevenue.
(ii) User charges Userchargesandfinesarerecognisedasrevenuewhen
theservicehasbeenprovided,thepaymentisreceived,orwhenthepenaltyhasbeenapplied,whicheverfirstoccurs.Aprovisionforimpairmentofdebtsisrecognisedwhencollectioninfullisnolongerprobable.
(iii) Sale of property, plant and infrastructure Theprofitorlossonsaleofanassetisdeterminedwhen
controloftheassethasirrevocablypassedtothebuyer.
(iv) Interest and rents Interestandrentsarerecognisedasrevenueonaproportional
basiswhenthepaymentisdue,thevalueofthepaymentisnotified,orthepaymentisreceived,whicheverfirstoccurs.
(v) Dividends DividendrevenueisrecognisedwhenCouncil'srighttoreceive
paymentisestablished.
Insummary,upontheadoptionofAASB9,Councilhadthefollowingreclassificationsasat1July2018:
AASB 139 CATEGORY AND CARRYING AMOUNT CARRYING AMOUNT ($)
AMORTISED COST ($)
EQUITY INSTRUMENT AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ($)
LoansandReceivables
–Tradeandotherreceivable–Note11 2,621,855 2,621,855 –
Heldtomaturity
–Shorttermfixeddeposits–Note10 3,500,000 3,500,000 –
Available-for-sale
–Investmentinwatercorporation–Note15 40,461,498 – 40,461,498
8 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 1 (continued)
(e) EXPENSE RECOGNITION ExpensesarerecognisedintheStatementofComprehensive
Incomewhenadecreaseinfutureeconomicbenefitsrelatedtoadecreaseinassetoranincreaseofaliabilityhasarisenthatcanbemeasuredreliably.
(i) Employeebenefits Employeebenefitsinclude,whereapplicable,entitlementsto
wagesandsalaries,annualleave,sickleave,longserviceleave,superannuationandanyotherpost-employmentbenefits.
(ii) Depreciation of Property, Plant and Infrastructure Buildings,landimprovements,plant,infrastructureand
otherassetshavinglimitedusefullivesaresystematicallydepreciatedovertheirusefullivestotheCouncilinamannerwhichreflectsconsumptionoftheservicepotentialembodiedinthoseassets.Estimatesofremainingusefullivesandresidualvaluesaremadeonaregularbasiswithmajorassetclassesreassessedannually.Depreciationratesandmethodsarereviewedannually.
Whereassetshaveseparateidentifiablecomponentsthataresubjecttoregularreplacement,thesecomponentsareassigneddistinctusefullivesandresidualvaluesandaseparatedepreciationrateisdeterminedforeachcomponent.Roadearthworksarenotdepreciatedonthebasisthattheyareassessedasnothavingalimitedusefullife.
Landisnotdepreciated.
Straightlinedepreciationischargedbasedontheresidualusefullifeasdeterminedeachyear.
Majordepreciationperiodsusedarelistedbelowandareconsistentwiththepriorperiod.
ASSET LIFE (YEARS)Land UnlimitedLandUnderRoads UnlimitedBuildings–Structure 75to150years–Roofcladding 75to100years–Externalfabric 75to150years–Internalfit–out 50to75years–Services 40to75years–SiteServices 40to75yearsFloodLeveeInfrastructure–DepreciableComponent 100years–NonDepreciableComponent UnlimitedFurniture,Fittings,OfficeEquipment&Computers 2to20yearsFleet 2to20yearsHeritageAssets–DepreciableComponent 20to100years–NonDepreciableComponent UnlimitedPlant 10to50yearsRoadsInfrastructure–Formation Unlimited–Pavement 10to90years–Surfacetreatment 12to80years–Footpaths 15to70years–Kerbandchannel 15to100years–Streetfurniture 15to100yearsBridges 30to100yearsStormwater&Drainage 80to100years
(iii) Repairs and maintenance Routinemaintenance,repaircosts,andminorrenewalcostsare
expensedasincurred.Whererepairrelatestothereplacementofacomponentofanassetandthecostexceedsthecapitalisationthresholdthecostiscapitalisedanddepreciated.
Thecarryingvalueofthereplacedassetisexpensed.
(f) RECOGNITION AND MEASUREMENT OF ASSETS(i) The Council controls and owns assets that are required to
provide the services for which it has responsibility Theseassetsinclude:land,buildings,fleet,plantand
infrastructure;i.e.roads,bridgesandstormwater.
(ii) Acquisition and Recognition Thecostmethodofaccountingisusedfortheinitialrecording
ofallacquisitionsofassets.
‘Cost’representsthefairvalueoftheseassetsgivenasconsiderationpluscostsincidentaltotheiracquisition(includingarchitectsfees,engineeringdesignfees,andadministrationchargesandallothercostsincurred)ingettingtheassetreadyforuse.
Property,infrastructure,plantandequipmentreceivedintheformofcontributions,arerecognisedasassetsandrevenuesatfairvaluebyCouncilvaluationwherethatvalueexceedstherecognitionthresholdsfortherespectiveassetclass.Fairvalueisthepricethatwouldbereceivedtoselltheassetinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.
Indeterminingthecostofnon-currentassetsconstructedbytheCouncil,‘Cost’includesallmaterialsusedintheconstruction,directlabourontheprojectandanappropriateproportionofvariableandfixedoverheads.Thecostofallmaterialsincludesallconsultingandengineeringfees.
Non-monetaryassetsreceivedintheformofgrantsordonationsarerecognisedasassetsandrevenuesattheirfairvalueatthedateofreceipt.
‘Fairvalue’meanstheamountforwhichanassetcouldbeexchangedbetweenaknowledgeable,willingbuyerandaknowledgeable,willingsellerinanarmslengthtransaction.Inrelationtoinfrastructureassetsitisrepresentedbydepreciatedreplacementcost.
CouncilappliesacapitalisationthresholdandassetspurchasedorconstructedwithavaluelessthanthisthresholdarechargedtotheStatementofComprehensiveIncomeintheyearofpurchase(otherthanwheretheyformpartofagroupofsimilaritemswhicharematerialintotal).
Northern Midlands Council | Annual Financial Report: 30 June 2019 9
NOTE 1(f) RECOGNITION AND MEASUREMENT OF ASSETS (continued)
ThefollowingclassesofassetshavebeenrecognisedinNote14.InaccordancewithCouncil’spolicy,thethresholdlimitsdetailedbelowhavebeenappliedwhenrecognisingassetswithinanapplicableassetclassandunlessotherwisestatedareconsistentwiththeprioryear.
THRESHOLD ($)
Land Nil
LandUnderRoads Nil
Buildings 5,000
FloodLeveeInfrastructure 3,000
Furniture,Fittings,OfficeEquipment&Computers 1,000
Fleet 1,000
Plant 1,000
RoadsInfrastructure 5,000
Bridges 5,000
Stormwater&Drainage 3,000
HeritageAssets 1,000
(iii) Valuation of Non-Current Assets Subsequenttotheinitialrecognitionofassets,non-current
physicalassets,otherthanassetcategorieslistedinthetablebelowasatcost,aremeasuredattheirfairvalueinaccordancewithAASB116Property,PlantandEquipmentandAASB13FairValueMeasurement.Atbalancedate,Councilreviewedthecarryingvalueoftheindividualclassesofassetsmeasuredatfairvaluetoensurethateachassetclassmateriallyapproximateditsfairvalue.Wherethecarryingvaluemateriallydifferedfromthefairvalueatbalancedatetheclassofassetwasrevalued.
Inaddition,Councilundertakesaformalrevaluationofland,buildings,andinfrastructureassetsonaregularbasistoensurevaluationsrepresentfairvalue.ThevaluationisperformedeitherbyexperiencedCouncilofficersorindependentexperts.
Wheretheassetsarerevalued,therevaluationincrementsarecrediteddirectlytotheassetrevaluationsurplusexcepttotheextentthatanincrementreversesaprioryeardecrementforthatclassofassetthathadbeenrecognisedasanexpenseinwhichcasetheincrementisrecognisedasrevenueuptotheamountoftheexpense.Revaluationdecrementsarerecognisedasanexpenseexceptwherepriorincrementsareincludedintheassetrevaluationsurplusforthatclassofassetinwhichcasethedecrementistakentothereservetotheextentoftheremainingincrements.Withinthesameclassofassets,revaluationincrementsanddecrementswithintheyearareoffset.
Councilhasadoptedthefollowingvaluationbasisforitsnon-currentassets:
Land fairvalue
LandUnderRoads fairvalue
Buildings fairvalue
FloodLeveeInfrastructure cost
Furniture,Fittings,OfficeEquipment&Computers cost
Fleet cost
Plant cost
RoadsInfrastructure fairvalue
Bridges fairvalue
Stormwater&Drainage fairvalue
HeritageAssets cost
(iv) Impairment of AssetsAteachreportingdate,Councilreviewsthecarryingvalueofitsassetstodeterminewhetherthereisanyindicationthattheseassetshavebeenimpaired.Ifsuchanindicationexists,therecoverableamountoftheasset,beingthehigheroftheasset’sfairvaluelesscoststosellandvalueinuse,iscomparedtotheassetscarryingvalue.AnyexcessoftheassetscarryingvalueoveritsrecoverableamountisexpensedtotheStatementofComprehensiveIncome,unlessthe
assetiscarriedattherevaluedamountinwhichcase,theimpairmentlossisrecogniseddirectlyagainsttherevaluationreserveinrespectofthesameclassofassettotheextentthattheimpairmentlossdoesnotexceedtheamountintherevaluationsurplusforthatsameclassofasset.
Assetsthathaveanindefiniteusefullifearenotsubjecttoamortisationandaretestedannuallyforimpairment.Assetsthataresubjecttoamortisationarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.
Fornon-cashgeneratingassetsofCouncilsuchasroads,bridges,stormwateranddrainageandthelike,valueinuseisrepresentedbythedeprivalvalueoftheassetapproximatedbyitswrittendownreplacementcost.
(v) Maintenance vs Capitalisation OfficersoftheCouncilwilldetermineattheoccurrenceof
aneventwhethertocapitaliseorexpensecostsincurredinproperty,plantandinfrastructure.Thefollowingformulaisprovidedasaguide,“maintenance,repaircostsandminorrenewalsarechargedasexpensesasincurredunlesstheirtotalvalueexceeds10%ofthewrittendowncurrentvalueandincreasestheeconomiclifebymorethan10%”.
(g) CASH AND CASH EQUIVALENTSCashandcashequivalentsincludescashonhand,depositsatcallwithfinancialinstitutions,othershort-term,highlyliquidinvestmentswithmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.Cashequivalentsareheldforthepurposeofmeetingshort-termcashcommitmentsratherthanforinvestmentorotherpurposes.
CouncilinpreviousyearshasreportedInvestmentswithaMaturityofuptoTwelveMonthsasCashandCashEquivalents,ithasinthecurrentyearrevisedthispolicytoonlyincludeinvestmentswithamaximumtermofthreemonthsfrombalancedate,withthosebetweenThreeandTwelveMonthsrecategorisedasShortTermInvestments.Comparativefigureshavebeenamendedtoaccordwiththisrevisedpresentation.
10 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 1 (continued)
(h) INVENTORIES Inventoriesheldfordistributionaremeasuredatcost
adjustedwhenapplicableforanylossofservicepotential.
(i) INVESTMENT IN WATER CORPORATIONCouncil’sinvestmentinTasWaterisvaluedatitsfairvalueatbalancedate.FairvaluewasdeterminedbyusingCouncil’sownershipinterestagainsttheWaterandSewerageCorporation’snetassetvalueatbalancedate.Council’sownershipinterestinTasWater,whichisbasedonSchedule2oftheCorporation’sConstitution,decreasedfrom2.52%at30June2018to2.49%at30June2019.Thedecreasewasduetotheissueof1,000,000sharestotheTasmanianGovernmentinJanuary2019.Furtherdecreaseswilloccureachfinancialyearupto30June2028,subjecttotheTasmanianGovernmentmeetingitsobligationstosubscribetosharesinaccordancewiththeShareSubscriptionandImplementationAgreement.
Council’sinvestmentisnottradedinanactivemarketandisonlysensitivetofluctuationsinthevalueofTasWater’snetassets.AsCouncil’sinvestmentinTasWaterisheldforlong-termstrategicpurposes,CouncilhaselectedunderAASB9:FinancialInstruments,toirrevocablyclassifythisequityinvestmentasdesignatedasfairvaluethroughothercomprehensiveincome.Subsequentchangesinfairvalueondesignatedinvestmentsinequityinstrumentsarerecognisedinothercomprehensiveincomeandnotreclassifiedthroughtheprofitorlosswhenderecognised.Dividendsassociatedwiththeequityinvestmentsarerecognisedinprofitandlosswhentherightofpaymenthasbeenestablishedanditcanbereliablymeasured.
CouncilhasderivedreturnsfromthecorporationasdisclosedatNote4.
(j) INVESTMENT TERM DEPOSITS Councilholdsmoniesinanumberoftermdeposits
withmaturitiesofgreaterthantwelvemonths.Theseinvestmentsareheldforthepurposeofmeetinglongtermcashcommitments.
(k) TRUST FUNDSThefinancialreportsoftheCouncilincorporateonlythoseitemsoverwhichtheCouncilhascontrol.
AmountsreceivedastenderdepositandretentionamountscontrolledbyCouncilareincludedintheamountdisclosedascreditorswithcurrentliabilitiesuntiltheyarerefundedorforfeited.
(l) EMPLOYEE BENEFITS(i) Short term obligations
Liabilitiesforwagesandsalaries,includingnon-monetarybenefitsandannualleaveexpectedtobewhollysettledwithin12monthsaftertheendoftheperiodinwhichtheemployeesrendertherelatedservicearerecognisedinrespectofemployees’servicesuptotheendofthereportingperiodandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.Theliabilityforannualleaveisrecognisedintheprovisionforemployeebenefits.Allothershort-termemployeebenefitobligationsarepresentedaspayables.
(ii) OtherlongtermemployeebenefitobligationsTheliabilityforlongserviceleaveandannualleavewhichisnotexpectedtobewhollysettledwithin12monthsaftertheendoftheperiodinwhichtheemployeesrendertherelatedserviceisrecognisedintheprovisionforemployeebenefitsandmeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptotheendofthereportingperiodusingtheprojectedunitcreditmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsattheendofthereportingperiodonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
Theobligationsarepresentedascurrentliabilitiesinthestatementoffinancialpositioniftheentitydoesnothaveanunconditionalrighttodefersettlementforatleasttwelvemonthsafterthereportingdate,regardlessofwhentheactualsettlementisexpectedtooccur.
(iii) Sick LeaveCouncildoesnotrecognisealiabilityforsickleavebecausesuchleaveisnon-vestingandbecauseitisprobablethatsickleavetakeninfuturereportingperiodswillbelessthanentitlementswhichareexpectedtoaccrueinthoseperiods.Employeesreceive10dayssickleaveperyearandtheaveragesickleavetakenbyeachemployeeforthe2018/19financialyearwas4.8days(2017/186.6days).
(iv) RosteredDaysOff Aliabilityforaccruedrostereddaysoffisrecognisedatthe
currentratesofpayincludingrelatedoncosts,forexpectedfuturepaymentstobemadeinrespectofaccrualsbyemployeesoftheCouncil.
(m) ACCRUALS / PREPAYMENTS AccrualsandPrepaymentsarerecognisedinaccordancewith
generallyacceptedaccountingpracticeswithmaterialityamajorfactorindeterminingtheirapplicability.
(n) NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES Netfairvaluesoffinancialinstrumentsaredeterminedon
thefollowingbasis:
• Monetaryfinancialassetsandliabilities-carryingamountsoftradedebtors,tradecreditorsandaccruals(whichapproximatesnetmarketvalue).
• Interestbearingloans-arecarriedattheirprincipalamount,whichrepresentsthepresentvalueoffuturecashflowsassociatedservicingthedebt.Interestisaccrued.
ItisCouncil’sviewthatthecarryingvalueofitsfinancialassetsandliabilitiesapproximatesfairvalue.
(o) SIGNIFICANT BUSINESS ACTIVITIES TheLocalGovernmentActrequiresthereportingofoperating
capitalandcompetitiveneutralityinrespectofeachsignificantbusinessactivityundertakenbyCouncil.Councilhasdetermined,baseduponanassessmentoftheactivitiesitundertakesthatithasnosignificantbusinessactivitiesforthe2019year.
Northern Midlands Council | Annual Financial Report: 30 June 2019 11
NOTE 1 (continued)
(p) LEASESOperating Leases as Lessee
LeasesinwhichasignificantportionoftherisksandrewardsofownershiparenottransferredtoCouncilaslesseeareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtotheincomestatementonastraight-linebasisovertheperiodofthelease.
CouncilleasesseveralparcelsofCrownLandunderleaseagreementswiththeStateGovernment.Theseleases,ingeneral,donotreflectcommercialarrangements,arelong-termandhaveminimalleasepayments.CrownlandisrecognisedasanassetintheStatementofFinancialPositionandcarriedatfairvaluewhenCouncilestablishesthat(i)ithascontroloverthelandand(ii)itwillderiveeconomicbenefitsfromit.
Operating Leases as Lessor Councilisalessorandentersintoagreementswithanumber
oflessees.Theseincludecommercialandnon-commercialagreements.
Whereleasesarenon-commercialagreements,thesearegenerallywithnotforprofit,suchassportingorganisations.InthesecasessubsidisedorpeppercornrentsarechargedbecauseCouncilrecognisespartofitsroleiscommunityserviceandcommunitysupport.Inthesesituations,Councilrecordsleaserevenueonanaccrualsbasisandrecordstheassociatedpropertiesaspartoflandandbuildingswithinproperty,plantandequipment.Buildingsarerecognisedatdepreciatedreplacementcost.
Whereleasesarecommercialagreements,butpropertiesleasedarepartofpropertiespredominantlyusedbyCouncilforitsownpurposes,Councilrecordsleaserevenueonanaccrualsbasisandrecordstheassociatedpropertiesaspartoflandandbuildingswithinproperty,plantandequipment.Buildingsarerecognisedatdepreciatedreplacementcost.
(q) TAXATIONCouncilisexemptfromallformsoftaxationexceptFringeBenefitsTax,PayrollTaxandGoodsandServicesTax.
Revenues,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(GST),exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxOffice(ATO).InthesecircumstancestheGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.
ReceivablesandpayablesarestatedwiththeamountofGSTincluded.
ThenetamountofGSTrecoverableorpayabletotheATOisincludedasacurrentassetorcurrentliabilityinthestatementoffinancialposition.
Cashflowsareincludedinthestatementofcashflowsonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoveredfrom,orpaidto,theATOareclassifiedasoperatingcashflows.
(r) BUDGET FIGURES Theestimatedrevenueandexpenseamountsinthe
StatementofComprehensiveIncomerepresentrevisedbudgetamountsandarenotaudited.
(s) CONTINGENT ASSETS, CONTINGENT LIABILITIES AND COMMITMENTS Contingentassetsandcontingentliabilitiesarenotrecognised
intheStatementofFinancialPosition,butaredisclosedbywayofanoteand,ifquantifiable,aremeasuredatnominalvalue.ContingentassetsandliabilitiesarepresentedinclusiveofGSTreceivableorpayablerespectively.
CommitmentsarenotrecognisedintheStatementofFinancialPosition.CommitmentsaredisclosedattheirnominalvalueinclusiveoftheGSTpayable.
(t) ROUNDING Unlessotherwisestatedamountsinthefinancialreporthave
beenroundedtothenearestdollar.
(u) PENDING ACCOUNTING STANDARDSCertainnewaccountingstandardsandinterpretationshavebeenpublishedthatarenotmandatoryfor30June2019reportingperiods.Council’sassessmentoftheimpactoftherelevantnewstandardsandinterpretationsissetoutbelow.
(i) AASB16Leases(effective1January2019)TheclassificationofleasesaseitherfinanceleasesoroperatingleasesiseliminatedforlesseesunderAASB16.Leaseswithatermofmorethan12monthswillberecognisedintheBalanceSheetbycapitalisingthepresentvalueoftheminimumleasepaymentsandshowinga‘right-of-use’asset,whilefutureleasepaymentswillberecognisedasafinancialliability.
Thenatureoftheexpenserecognisedintheprofitorlosswillchange.Ratherthanbeingshownasrent,orasleasingcosts,itwillberecognisedasdepreciationonthe‘right-of-use’asset,andaninterestchargeontheleaseliability.Theinterestchargewillbecalculatedusingtheeffectiveinterestmethod,whichwillresultinagradualreductionofinterestexpenseovertheleaseterm.IntheStatementofCashFlowsleasepaymentswillbeshownascashflowsfromfinancingactivitiesinsteadofoperatingactivities.
TheoverallimpacttoreportingisconsideredtobeimmaterialwithCouncilhavingnomaterialexistingassetsheldunderleaseagreementswiththeexceptionofanumberofpeppercornleasearrangementsoverCrownLand,butallareconsideredtohaveunderlyingassetsoflowvalueandhencearenotconsideredapplicableforreporting.Lessoraccountingwillremainlargelyunchangedwithnosignificantchangesexpected.Councilwillapplythestandardfrom1July2019usingaretrospectiveapproachwithcumulativecatch-upwithanadjustmenttoaccumulatedsurplusesforthedifferenceinaccountingtreatmentoninitialadoption.
(ii) AASB 15 Revenue from Contracts with Customers (ThestandardhasbeendeferredbyAASB2016-7DeferralofAASB15forNot-for-ProfitEntities,untilthe2019/20reportingperiod)
AASB15introducesafive-stepprocessforrevenuerecognition,withthecoreprincipleofthenewstandardbeingforentitiestorecogniserevenuetodepictthetransferofgoodsorservicestocustomersinamountsthatreflecttheconsideration(thatis,payment)towhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.Accountingpolicychangeswillariseinthetimingofrevenuerecognition,treatmentofcontractscostsandcontractswhichcontainafinancingelement.
12 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 1(u) PENDING ACCOUNTING STANDARDS (continued)
Councilhasanalysedthenewrevenuerecognitionrequirementsnotingthatfutureimpactsinclude:
• Dependingontherespectivecontractualterms,thenewrequirementsofAASB15mayresultinachangetothetimingofrevenuefromsalesofgoodsandservicessuchthatsomerevenuemayneedtobedeferredasaliabilitytoalaterreportingperiodtotheextentthatCouncilhasreceivedcash,buthasnotmetitsassociatedperformanceobligations,(apromisetotransferagoodorservice).
• Grantsreceivedtoconstructnon-financialassetscontrolledbyCouncilwillberecognisedasaliability,andsubsequentlyrecognisedprogressivelyasrevenueasCouncilsatisfiesitsperformanceobligationsunderthegrant.Atpresent,suchgrantsarerecognisedasrevenueupfront.
• Othergrantspresentlyrecognisedasrevenueupfrontmaybeeligibletoberecognisedasrevenueprogressivelyastheassociatedperformanceobligationsaresatisfied,butonlyiftheassociatedperformanceobligationsareenforceableandsufficientlyspecific.
• Grantsthatarenotenforceableand/ornotsufficientlyspecific,willnotqualifyfordeferral,andcontinuetoberecognisedasrevenueassoonastheyarecontrolled.Councilreceivesseveralgrantsforwhichtherearenosufficientlyspecificperformanceobligations,forexampletheCommonwealthFinancialAssistanceGrants.Thesegrantswillcontinuebeingrecognisedasrevenueupfrontassumingnochangetothecurrentgrantarrangements.
ForCounciltherewillbeasignificanteffectinthetreatmentofallgrantswithsufficientlyspecificperformanceobligationswheretheconditionshaveyettobefulfilledatyearend.CouncilcurrentlypresentsunexpendedgrantincomereceivedinNote3.Council’sassessmentisthatthemajorityoftheamountsreceivedunexpendedfortheyear,excludingtheCommonwealthFinancialAssistanceGrantswillbedeferredasaliabilityunderAASB15andprogressivelyrecordedasincomeasperformanceobligationsarefulfilled.Councilwillapplythestandardfrom1July2019usingaretrospectiveapproachwithcumulativecatch-upwithanadjustmenttoAccumulatedSurplusesforthedifferenceinaccountingtreatmentoninitialadoption.
(iii) AASB1058IncomeofNot-for-ProfitEntities(Thisstandardhasbeendeferreduntilthe2019/20reportingperiod)
AASB1058supersedesalltheincomerecognitionrequirementsrelatingtocouncils,previouslyinAASB1004Contributions.ThetimingofincomerecognitionunderAASB1058dependsonwhetheratransactiongivesrisetoaliabilityorotherperformanceobligation,oracontributionbyowners,relatedtoanasset(suchascashoranotherasset)received.AASB1058applieswhenCouncilreceivesvolunteerservicesorentersintoothertransactionsinwhichtheconsiderationtoacquireanassetissignificantlylessthanthefairvalueoftheasset,andwheretheassetisprincipallytoenableCounciltofurtheritsobjectives.IncaseswhereCouncilentersintoothertransactions,CouncilrecognisesandmeasurestheassetatfairvalueinaccordancewiththeapplicableAustralianAccountingStandard(e.g.AASB116Property,PlantandEquipment).IfthetransactionisatransferofafinancialassettoenableCounciltoacquireorconstructarecognisablenon-financialassettobecontrolledbyCouncil(i.e.anin-substanceacquisitionofanon-financialasset),Councilrecognisesaliabilityfortheexcessofthefairvalueofthetransferoveranyrelatedamountsrecognised.Councilwillrecogniseincomeasitsatisfiesitsobligationsunderthetransfer,similarlytoincomerecognitioninrelationtoperformanceobligationsunderAASB15asdiscussedabove.
Wheretheassetacquiredisleasedata“Peppercorn”rate,Councilisrequiredtorecognisetheleasedassetatitsfairvalue,theremainingleaseliabilityandthebalanceasincome.Theseleasedright-of-useassetshavenotpreviouslybeenrecognised.CouncilcurrentlyhasanumberofthesePeppercornleases,howeverpreliminaryassessmenthasrevealedthefairvalueoftheseleasesisunlikelytobematerialinnatureandthereforewillnotimpactonCouncilsFinancialStatements.
AASB1058alsoencompassesnon-contractualstatutoryincomesuchasrates,taxesandfines.Councilcurrentlyrecognisesincomewhenreceived.UnderAASB1058,incomeisrecognisedwhenthetaxableeventhasoccurred.AnimpactforCouncilisthatprepaidratesreceivedpriortothebeginningofaratingperiod,willnowberecognisedasafinancialliabilityuntilthecommencementofthatratingperiod.
TheimpacttoCouncilwillbethatrevenuerecognisedwhenreceivedfromRatesandChargesinadvanceasdisclosedinNote2.1,willnowberecordedasaliability,withrevenuedeferreduntilthecommencementoftheapplicableratingperiod.
AASB1058requirestherecognitionofVolunteerServiceswheretheywouldhavebeenpurchasedifnotdonatedandthefairvalueofthoseservicescanbereliablymeasured.Councilhasnotyetassessedtheserequirementsandtheirfutureimpact.
Councilwillapplythestandardfrom1July2019usingaretrospectiveapproachwithcumulativecatch-upwithanadjustmenttoAccumulatedsurplusesforthedifferenceinaccountingtreatmentoninitialadoption.
AllotherAustralianaccountingstandardsandinterpretationswithfutureeffectivedatesareeithernotapplicabletoCouncil’sactivities,orhavenomaterialimpact.
Northern Midlands Council | Annual Financial Report: 30 June 2019 13
NOTE 2(a) FUNCTIONS / ACTIVITIES OF THE COUNCIL Income,expensesandassetshavebeenattributedtothefollowingfunctions/activities.Detailsofthefunctions/activitiesofeachBusinessUnitaresetoutinNote2(b).
2019 GOVERNANCE
2018 GOVERNANCE
2019 REGULATORY &
COMMUNITY SERVICES
2018 REGULATORY &
COMMUNITY SERVICES
2019 DEVELOPMENT
SERVICES
2018 DEVELOPMENT
SERVICES
2019 WORKS &
INFRASTRUCTURE
2018 WORKS &
INFRASTRUCTURE2019
TOTAL2018
TOTAL
Recurrent IncomeGrants 158,876 144,042 73,248 82,194 74,746 67,883 3,562,244 3,386,121 3,869,114 3,680,240Other 2,454,418 2,410,363 866,002 899,853 989,142 924,029 10,817,043 9,866,714 15,126,605 14,100,959Total 2,613,294 2,554,405 939,250 982,047 1,063,888 991,912 14,379,287 13,252,835 18,995,719 17,781,199
Capital IncomeGrants 16,051 – – 23,000 – – 2,826,281 2,365,852 2,842,332 2,388,852Other – – – – – – 51,480 984,788 51,480 984,788Total 16,051 – – 23,000 – – 2,877,761 3,350,640 2,893,812 3,373,640
Total Income 2,629,345 2,554,405 939,250 1,005,047 1,063,888 991,912 17,257,048 16,603,475 21,889,531 21,154,839
Expenses 2,096,169 1,982,025 966,417 1,130,992 986,183 934,069 13,965,703 13,667,075 18,014,472 17,714,161
Surplus/(Deficit) 533,176 572,380 (27,167) (125,945) 77,705 57,843 3,291,345 2,936,400 3,875,059 3,440,678
Assets 107,628,726 101,130,532 1,172,849 1,054,396 261,427 290,694 227,020,540 215,849,866 336,083,542 318,325,488
(b) COMPONENT FUNCTIONS / ACTIVITIES TheactivitiesrelatingtotheCouncil’scomponentsreportedinNote2(a)areasfollows:
Governance Theprovisionofelectedrepresentation,executivesupport,strategicplanningandpublicrelationsservicestoCouncil.
Regulatory & Community Services TheprovisionofthefollowingservicestoCouncil:
• CommunityServicesManagement• EconomicDevelopment• TourismPromotion• Health&EnvironmentalManagement
Development Services TheprovisionofthefollowingservicestoCouncil:
• Planning• Building&Plumbing
Works & Infrastructure MaintenanceandconstructionofCouncil’sinfrastructureandfacilities.
14 Northern Midlands Council | Annual Financial Report: 30 June 2019
2019 $
2018 $
Federally funded capital grants received specifically for new or upgraded assetsRoadstoRecovery 396,509 1,385,852BridgeReplacement:MacquarieRiver–WoolmersBridgeNo.1130 811,500 600,000
Rural&RemoteChildCareCapitalShadeSail/Shed/Bathroom 16,051 –
SolarPanelInstallationRecreationGrounds – 10,000CampbellTownRecreationGroundComplex 450,000 –CressyPoolInfrastructureUpgrades 16,973 –
1,691,033 1,995,852 Federally funded recurrent grantsEmployeeTraining 4,000 –MidlandsKidsClub 3,925 15,700PerthChildCareService 115,104 43,100Rural&RemoteChildCare 87,712 176,544RuralandRemoteChildCare–BFFTransitionFunding – 10,000
Rural&RemoteChildCareWorkforceSupplementation – 8,209
CommonwealthGovernmentfinancialassistancegrants–GeneralPurpose 1,158,635 1,033,814–Roads 2,413,561 3,572,196 2,315,677 3,349,491
3,782,937 3,603,044
NOTE 3
GRANT REVENUEGrantswerereceivedinrespectofthefollowing:
TheAustralianCommonwealthGovernmentprovidesFinancialAssistanceGrantstoCouncilforgeneralpurposeuseandtheprovisionoflocalroads.In2018/19theCommonwealthmadeearlypaymentoftwoquarterlyinstalmentsforthefollowingyear.InaccordancewithAASB1004Contributions,Councilrecognisesthesegrantsasrevenuewhenitreceivesthefundsandobtainscontrol.TheearlyreceiptofinstalmentshadbeenanticipatedbyCouncilinitsoriginalbudgetandthereforehasnotresultedinCommonwealthGovernmentFinancialAssistanceGrantsbeingbeinggreaterthanbudgeted.ThispaymenthasnotimpactedtheSurplus/DeficitintheStatementofComprehensiveIncomeasanadvancepaymentoftwoquarterlypaymentswasalsoreceivedattheendofthe2017/18financialyear.
Governmentfundsreceivedinrelationtopensionerratesof$452,339($448,1652017/18)havebeentreatedintheStatementofComprehensiveIncomeasraterevenue.
2019 $
2018 $
State funded capital grants received specifically for new or upgraded assetsAvocaTouristInfoCentreMuseum–SolarPanels – 23,000AvocaHallKitchen – 10,000BlackSpotRoadFundingClarence/ArthurStPerth 56,950 –CampbellTownTennisCourts 55,000 80,000CampbellTownCenotaphRedevelopment – 70,000CressyPoolInfrastructureUpgrade 16,973 100,000EvandaleFootballClubElectronicScoreboard – 30,000LongfordVillageGreenCarousel&SwingSet 29,539 –LongfordRecreationGroundAmenitiesUpgrade 233,409 80,000MorvenParkAmenitiesImprovements 587,300 –MorvenParkGymEquipmentEvandale 6,550 –PatonStreetStormwaterDiversionProject(NDRGP) 110,000 –
GateAutomationBackCreekFloodLevee(NDRGP) 40,000 –
VulnerableRoadUsersPerthFrederich/FairtloughSt 15,578 –
1,151,299 393,000 State funded recurrent grantsBackCreekLeveeAugmentationFeasibilityStudy(NDRG) – 3,000
CatholicCemeteryEvandalePeaceGarden&Stormwater 11,980 –
HeavyVehicleMotorTaxGrants 74,197 74,197 86,177 77,197
Total Capital Grants 2,842,332 2,388,852 Total Recurrent Grants 3,869,114 3,680,241 Total Government Grants 6,711,446 6,069,093
Northern Midlands Council | Annual Financial Report: 30 June 2019 15
2019 $
2018 $
CommonwealthFinancialAssistanceGrant–GeneralPurpose 585,338 550,495–Roads 1,229,0561,814,394 1,178,4101,728,905AvocaTouristInfoCentreMuseum–SolarPanels 21,450 23,000BlackSpotRoadFundingClarence/ArthurStPerth 41,297 –CampbellTownTennisCourts – 80,000CampbellTownCenotaphRedevelopment 69,010 70,000CressyPoolInfrastructureUpgrade 97,920 100,000EvandaleFootballClubElectronicScoreboard – 30,000GateAutomationBackCreekFloodLevee(NDRGP) 31,693 –LongfordRecreationGroundAmenitiesUpgrade – 80,000MorvenParkAmenitiesImprovements 532,032 –Rural&RemoteChildCareCapitalShadeSail/Shed/Bathroom 3,853 –
2,611,649 2,111,905
NOTE 4
INVESTMENT REVENUE FROM WATER CORPORATION
2019 $
2018 $
DividendRevenue 245,434 432,879
TaxEquivalents 159,350 207,210
GuaranteeFee 63,216 61,911
Total Investment Revenue from Water Corporation 468,000 702,000
NOTE 3
GRANT REVENUE (continued)Grantsrecognisedasrevenuesduringthereportingperiodwhichhaveyettobeappliedtothepurposeforwhichtheywereprovidedasatthereportingdate:
2019 $
2018 $
Thegain/(loss)onsaleanddisposaloffixedassetsfortheperiodwascomprisedof:Buildings
Proceedsfromsales/(Costofdisposal) – (13,245)
WrittendownvalueofassetsdisposedwithnoProceeds – (384,842)
Gain/(loss)ondisposal – (398,087)
Furniture, Fittings, Office Equipment and Computers
Proceedsfromsales 1,709 1,364
Writtendownvalueofassetssold (637) (10,118)
Gain/(loss)ondisposal 1,072 (8,754)
Plant and Equipment
Proceedsfromsales 1,500 –
Writtendownvalueofassetssold (1,089) –
Gain/(loss)ondisposal 411 –
Fleet
Proceedsfromsales 193,500 256,172
Writtendownvalueofassetssold (171,401) (195,962)
Gain/(loss)onsale 22,099 60,210
Roads Infrastructure
Writtendownvalueofassetsdisposedwithnoproceeds (196,367) (397,143)
Gain/(loss)ondisposal (196,367) (397,143)
Bridges
Writtendownvalueofassetsdisposedwithnoproceeds (39,735) (108,936)
Gain/(loss)ondisposal (39,735) (108,936)
Stormwater & Drainage
Writtendownvalueofassetsdisposedwithnoproceeds (160,687) (7,858)
Gain/(loss)ondisposal (160,687) (7,858)
Total
Proceedsfromsales/(Costofdisposal) 196,709 244,291
Writtendownvalueofassetssold (173,127) (206,080)
Gain/(loss)onsaleofFixedassets 23,582 38,211
Writtendownvalueofassetsdisposedwithnoproceeds (396,789) (898,780)
Gain/(loss)onsale&disposalofFixedAssets (373,207) (860,569)
NOTE 5 GAIN / (LOSS) ON SALE AND DISPOSAL OF FIXED ASSETS
16 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 6
EMPLOYEE BENEFITS
2019 $
2018 $
WagesandSalaries 3,677,817 3,456,047
Superannuation 505,662 485,008
Annual,Sick,LongService&OtherLeavePaid 713,747 729,825
Totalemployeebenefitsexpenses 4,897,226 4,670,880
StateGovernmentPayrollTax 219,447 228,292
WorkersCompensation 116,975 133,954
ProvisionforLeaveEntitlements 48,392 175,133
OtherEmployeeOncostExpenses 31,175 30,162
Totalotheremployeerelatedexpenses 415,989 567,541
5,313,215 5,238,421
LessAmountsCapitalised:
Non–currentassetsconstructed (559,820) (414,676)
Totalemployeebenefits&relatedexpenses 4,753,395 4,823,745
NumberofEmployeesasat30Juneare: TOTAL 30/6/19
EQUIVALENT FULL
TIME 30/6/19TOTAL
30/6/18EQUIVALENT
FULL TIME 30/6/18
Permanent 68 62 63 57
Casual 17 4 15 3
85 66 78 60
NOTE 7
MATERIALS AND SERVICES
2019 $
2018 $
ContractorPayments
–CorporateServices&Governance 116,867 167,426
–CommunityBuildings&Halls 39,889 32,976
–DevelopmentServices 64,413 85,977
–Health&EnvironmentalServices 81,570 95,006
–KerbsideGarbageandRecycling 688,897 650,654
–Parks&Reserves 159,096 109,610
–PublicAmenities 78,388 57,131
–Roads&Bridges 583,051 456,246
–Tourism&CommunityDevelopment 21,947 11,577
–UrbanStormwater 44,612 30,977
–WasteTransferStations 532,288 531,864
–OtherContractorPayments 178,497 2,589,515 172,613 2,402,057
Materials
–CommunityBuildings&Halls 15,955 10,192
–CorporateServices&Governance 192,058 170,958
–Parks&Reserves 101,803 95,323
–PublicAmenities 37,016 18,672
–Roads&Bridges 265,243 266,910
–UrbanStormwater 19,847 27,126
–OtherMaterialPurchases 213,885 845,807 193,701 782,882
ConsultantsFees 638,587 578,219
ElectricityCosts 191,343 247,547
Insurance 178,699 160,012
TelecommunicationCosts 54,260 48,416
Other 22,997 153,350 4,521,208 4,372,483
Northern Midlands Council | Annual Financial Report: 30 June 2019 17
NOTE 8
DEPRECIATION AND AMORTISATION EXPENSE
Depreciationandamortisationexpensefortheyearisasfollows:
2019 $
2018 $
Buildings 697,163 662,124Plant 227,099 198,903FloodLeveeInfrastructure 18,882 18,882Furniture,Fittings,OfficeEquipment&Computers 145,817 142,410Fleet 409,855 408,576RoadInfrastructure 3,395,301 3,343,723Bridges 394,713 384,357Stormwater&Drainage 402,681 381,926HeritageAssets 9,496 9,253Total 5,701,007 5,550,154
NOTE 9
OTHER EXPENSES
Otherexpensesfortheyearareasfollows:
2019 $
2018 $
Bad&DoubtfulDebts 459,935 418,915Contributions&Donations 209,575 202,451Councillors'Remuneration 206,109 200,100FringeBenefitsTax 18,362 26,671RateRemissions&Discounts 49,402 49,612SpecialCommitteeExpenditure 177,454 181,216Refunds&Reimbursements 31,806 29,978WorkinProgressfromprioryearsnotCapitalised 273,435 23,100OtherExpenses – 241Total 1,426,078 1,132,284
NOTE 10
CASH AND CASH EQUIVALENTS AND SHORT TERM INVESTMENTS
2019 $
2018 $
Cash and Cash Equivalents
CashonHand 600 600
CashatBank 1,441,295 910,015
CashheldbySpecialCommitteesofCouncil 245,578 268,913
MoneyMarketCallAccounts 1,130,362 633,989
ShortTermFixedDeposits 509,229 3,500,000
Total cash and cash equivalents 3,327,064 5,313,517
Short Term Investments 6,914,434 8,869,496
Cash and Cash Equivalents and Short Term Investments 10,241,498 14,183,013
Councilscashandcashequivalentsaresubjecttoanumberofinternalandexternalrestrictionsthatlimitamountsavailablefordiscretionaryorfutureuse.Theseinclude:
– Leaveprovisions(Note17) 1,222,867 1,168,978
– MoniesheldinTrust(Note16) 587,617 360,743
– SpecialCommitteeCashHeld 245,578 268,913
– Grantsreceivedwhichhavenotyetbeenappliedtothepurposeforwhichtheywereprovided(Note3). 2,611,649 2,111,905
– CashrequiredtomaintainobjectivessetoutinassetManagementandLongtermFinancialPlanscalculatedat1%ofgrossvalueofProperty,Plant&Infrastructure
3,922,916 3,727,086
Total Restricted Funds 8,590,627 7,637,625
Unrestricted Cash and Cash Equivalents and Short Term Investments
1,650,871 6,545,388
18 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 11
TRADE AND OTHER RECEIVABLES
2019 $
2018 $
Current
TradeDebtors–Sundry 740,919 294,521
RatesOutstanding 2,568,393 2,245,313
LessExpectedCreditLoss (2,266,748) 301,645 (1,919,415) 325,898
AccruedIncome 104,148 101,436
1,146,712 721,855
Non Current
LoanReceivable 1,900,000 1,900,000
TotalTrade&OtherReceivables 3,046,712 2,621,855
Ratespaymentsreceivedinadvancearetreatedasraterevenueintheyearinwhichtheyarereceived,in2018/19thisamountedto$293,078(2017/18$266,512).
Certainamountsraisedbywayofratesequivalents(whicharenotachargeontheland)inrespectofLauncestonAirportaresubjecttodisputewhichhadnotbeenresolvedatbalancedate.Theamountraisedbutunpaidat30Junewas$2,266,748(30June2018$1,919,415).ThismatterwasheardintheFederalCourtofAustraliaandajudgementhandeddownonthe24thofSeptember2019infavouroftheLauncestonAirport.Councilisintheprocessoflodginganappealagainstthedecision.
2019 $
2018 $
Timber–Heldfordistributionataveragecost 2,332 4,021
NorfolkPlainsHistoryBook–Heldforsaleatcost 19,031 19,849
Longford200YearsMedallions–Heldforsaleatcost – 3,505
21,363 27,375
2019 $
2018 $
OpeningWorkinProgress 3,179,256 852,680
AddWorkinProgressadditionsincurrentyear 14,521,549 8,572,189
Lesstransferstoexpenses (273,435) (23,100)
LesstransferstoProperty,Plant&Infrastructure (10,506,606) (6,222,513)
ClosingWorkinProgressatcost 6,920,764 3,179,256
NOTE 12
INVENTORY
NOTE 13
CAPITAL WORKS IN PROGRESS
Northern Midlands Council | Annual Financial Report: 30 June 2019 19
NOTE 14
PROPERTY, PLANT AND INFRASTRUCTURE
2019 $
2018 $
LandGross ValueOpeningBalance 12,466,343 10,660,978
Additions—Purchased 1,074,014 314,222
RevaluationAdjustment – 1,491,143
NetAmountatFairValue 13,540,357 12,466,343
Land Under RoadsGross ValueOpeningBalance 14,474,775 14,432,690
Additions—DonatedorContributed 16,480 42,085
NetAmountatFairValue 14,491,255 14,474,775
BuildingsGross ValueOpeningBalance 51,719,718 48,728,382
Additions—PurchasedorConstructed 607,904 921,911
Additions—DonatedorContributed – –
Sales – (19,645)
Disposalswithnoproceeds – (639,719)
RevaluationAdjustment 1,494,700 2,728,789
ClosingBalance 53,822,322 51,719,718
Accumulated DepreciationOpeningBalance (26,605,061) (24,827,140)
DepreciationExpense (697,163) (662,124)
Sales – 9,953
Disposalswithnoproceeds – 264,570
RevaluationAdjustment (768,886) (1,390,320)
ClosingBalance (28,071,110) (26,605,061)
NetAmountatFairValue 25,751,212 25,114,657
2019 $
2018 $
Heritage AssetsGross ValueOpeningBalance 1,208,671 1,167,868
Additions–PurchasedorConstructed 21,434 40,803
ClosingBalance 1,230,105 1,208,671
Accumulated DepreciationOpeningBalance (184,353) (175,099)
DepreciationExpense (9,496) (9,254)
ClosingBalance (193,849) (184,353)
NetAmountatCost 1,036,256 1,024,318
Flood Levee InfrastructureGross ValueOpeningBalance 5,205,942 5,205,942
ClosingBalance 5,205,942 5,205,942
Accumulated DepreciationOpeningBalance (191,140) (172,258)
DepreciationExpense (18,882) (18,882)
ClosingBalance (210,022) (191,140)
NetAmountatCost 4,995,920 5,014,802
Furniture, Fittings, Office Equipment & ComputersGross ValueOpeningBalance 2,091,066 2,409,693
Additions–PurchasedorConstructed 179,283 209,664
Additions—DonatedorContributed – –
Sales (7,662) (6,985)
Disposalswithnoproceeds – (521,306)
ClosingBalance 2,262,687 2,091,066
Accumulated DepreciationOpeningBalance (1,340,434) (1,716,196)
DepreciationExpense (145,817) (142,410)
Sales 7,026 5,793
Disposalswithnoproceeds – 512,379
ClosingBalance (1,479,225) (1,340,434)
NetAmountatCost 783,462 750,632
20 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 14
PROPERTY, PLANT AND INFRASTRUCTURE (continued)
2019 $
2018 $
FleetGross ValueOpeningBalance 4,862,031 4,591,784
Additions–PurchasedorConstructed 660,196 942,377
Sales (521,162) (672,130)
ClosingBalance 5,001,065 4,862,031
Accumulated DepreciationOpeningBalance (1,916,769) (1,984,359)
DepreciationExpense (409,855) (408,576)
Sales 349,762 476,166
ClosingBalance (1,976,862) (1,916,769)
NetAmountatCost 3,024,203 2,945,262
PlantGross ValueOpeningBalance 3,881,047 3,027,920
Additions–PurchasedorConstructed 1,582,843 853,127
Additions—DonatedorContributed 35,000 –
Sales (1,479) –
ClosingBalance 5,497,411 3,881,047
Accumulated DepreciationOpeningBalance (2,260,997) (2,062,094)
DepreciationExpense (227,099) (198,903)
Sales 387 –
ClosingBalance (2,487,709) (2,260,997)
NetAmountatCost 3,009,702 1,620,050
2019 $
2018 $
Roads InfrastructureGross ValueOpeningBalance 209,297,922 205,506,142
Additions–PurchasedorConstructed 1,887,671 2,432,424
Additions—DonatedorContributed – 522,638
Disposalswithnoproceeds (1,692,097) (2,040,368)
RevaluationAdjustment 9,418,407 2,877,086
ClosingBalance 218,911,903 209,297,922
Accumulated DepreciationOpeningBalance (72,188,159) (69,514,459)
DepreciationExpense (3,395,301) (3,343,723)
Disposalswithnoproceeds 1,495,729 1,643,225
RevaluationAdjustment (3,248,467) (973,202)
ClosingBalance (77,336,198) (72,188,159)
NetAmountatFairValue 141,575,705 137,109,763
BridgesGross ValueOpeningBalance 28,738,361 28,187,280
Additions–PurchasedorConstructed 3,709,742 430,260
Disposalswithnoproceeds (675,542) (254,523)
RevaluationAdjustment (529,180) 375,344
ClosingBalance 31,243,381 28,738,361
Accumulated DepreciationOpeningBalance (7,769,831) (7,430,142)
DepreciationExpense (394,713) (384,357)
Disposalswithnoproceeds 635,807 145,588
RevaluationAdjustment (340,515) (100,920)
ClosingBalance (7,869,252) (7,769,831)
NetAmountatFairValue 23,374,129 20,968,530
Northern Midlands Council | Annual Financial Report: 30 June 2019 21
NOTE 14
PROPERTY, PLANT AND INFRASTRUCTURE (continued)
2019 $
2018 $
Stormwater & DrainageGross ValueOpeningBalance 38,762,748 37,522,228Additions–PurchasedorConstructed 783,519 77,725Additions–DonatedorContributed – 420,065Disposalswithnoproceeds (255,854) (16,716)RevaluationAdjustment 1,794,743 759,446ClosingBalance 41,085,156 38,762,748Accumulated Depreciation OpeningBalance (8,949,389) (8,416,410)DepreciationExpense (402,681) (381,925)Disposalswithnoproceeds 95,167 8,858RevaluationAdjustment (402,723) (159,912)ClosingBalance (9,659,626) (8,949,389)NetAmountatFairValue 31,425,530 29,813,359
Total Property, Plant & InfrastructureGross ValueOpeningBalance 372,708,624 361,440,907Additions–PurchasedorConstructed 10,506,606 6,222,513Additions–DonatedorContributed 51,480 984,788Sales (530,303) (698,760)Disposalswithnoproceeds (2,623,493) (3,472,632)RevaluationAdjustment 12,178,670 8,231,808ClosingBalance 392,291,584 372,708,624Accumulated DepreciationOpeningBalance (121,406,133) (116,298,157)DepreciationExpense (5,701,007) (5,550,154)Sales 357,175 491,912Disposalswithnoproceeds 2,226,703 2,574,620RevaluationAdjustment (4,760,591) (2,624,354)
ClosingBalance (129,283,853) (121,406,133)
Net Amount 263,007,731 251,302,491
NOTE 15
INVESTMENT IN WATER CORPORATION
2019 $
2018 $
OpeningBalanceInvestmentinWaterandSewerageCorporation 40,461,498 39,943,079
FairValueadjustmentsonAvailableforSaleAssets – 518,419
FairValueadjustmentsonEquityInvestment 5,833,976 –
TotalInvestmentinWaterandSewerageCorporation 46,295,474 40,461,498
CouncilhasderivedreturnsfromthewatercorporationasdisclosedatNote4.
NOTE 16
TRADE AND OTHER PAYABLES
2019 $
2018 $
Current
TradeCreditor 1,317,181 980,270
AccruedWages 137,938 124,672
MoneyheldinTrust 587,617 360,743
2,042,736 1,465,685
22 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 18
LOANS PAYABLE AND RECEIVABLE
NOTE 17
PROVISIONS
2019 $
2018 $
Current
EmployeeBenefits–AnnualLeave 449,569 433,575
EmployeeBenefits–LongServiceLeave 504,223 446,818
EmployeeBenefits–Oncosts 194,833 178,682
1,148,625 1,059,075
Non-Current
EmployeeBenefits–LongServiceLeave 61,382 91,100
EmployeeBenefits–Oncosts 12,860 74,242 18,803 109,903
AggregateEmployeeBenefits 1,222,867 1,168,978
Councilhasreceivedthesumof$8.47millionfromTascorpundertheStateGovernmentsAcceleratedLocalGovernmentCapitalProgram.Councilappliedfor$1.9MofthisfundingonbehalfofTooseyAgedCare,towhomittransferredthefundsinMarch2017,asaninterestfreeloanrepayableinfullafter5years.InterestisappliedtothisCouncilloanfromTascorpatarateof3.24%,howevertheStateGovernmentwillprovideafullrebateoftheinterestpaidforaperiodofuptofiveyears.Councilintendstopaybackthisloaninfullattheendofthefiveyearperiod.TheBalanceoftheloanfundwerereceivedintwoinstalmentsof$5.52M(4/7/2017)and$1.05M(29/6/2018)havebeenretainedbyCounciltobeusedforvariousinfrastructureprojects.InterestisappliedtotheseCouncilloansfromTascorpatarateof3.16%and3.43%respectively,againtheStateGovernmentwillprovideafullrebateoftheinterestpaidforaperiodofuptofiveyears.Councilintendstopaybackboththeseloansinfullattheendofthefiveyearperiod.
Theliabilityforlongserviceleaveandannualleavewhichisnotexpectedtobewhollysettledwithin12monthsaftertheendoftheperiodinwhichtheemployeesrendertherelatedserviceisrecognisedintheprovisionforemployeebenefitsandmeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptotheendofthereportingperiod,usingtheprojectedunitcreditmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsattheendofthereportingperiodonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
2019 $
2018 $
Loans Payable
Non-Current
LoansPayable—TasCorp 8,470,000 8,470,000
TotalLoansPayable 8,470,000 8,470,000
Loans Receivable
Non-Current
LoansReceivable—CommunityOrganisation (1,900,000) (1,900,000)
TotalLoansReceivable (1,900,000) (1,900,000)
Northern Midlands Council | Annual Financial Report: 30 June 2019 23
NOTE 22
SPECIAL COMMITTEES AND RIVERWORKS DISTRICTThestatementsincludetransactionsforthefollowing:
(a) SPECIAL COMMITTEES
OPERATINGINCOME
$2019
OPERATINGEXPENDITURE
$2019
CASH & CASH EQUIVALENTS
$2019
Committee Name
AboutCampbellTown 7,285 5,912 17,684
AvocaCommunityCentre 3,657 2,750 12,960
AvocaMuseum&InfoCentre 841 1,715 14,531
BishopsbourneCommunityCentre 19,792 24,115 33,808
CampbellTownPool 19,636 16,487 28,525
CampbellTownRecreationGround 2,851 2,942 13,328
CressyHall 2,239 4,172 7,482
CressyPool 33,844 33,362 17,914
CressyRecreationGround 352 7,132 4,889
DevonHillResidents 331 358 1,750
EppingHall 3,547 3,567 7,434
EvandaleCommunityCentre&WarMemorialHall 26,519 22,449 14,118
LiffeyHall 4,089 3,461 7,001
LongfordRecreationGround 6,350 9,890 3,376
MorvenParkRecreationGround 10,796 15,284 1,293
PerthCommunityCentre 13,067 13,410 10,116
PerthRecreationGround 5,870 8,025 4,511
RossCommunitySportsClub 28,593 37,964 44,858
189,659 212,995 245,578
NOTE 19
CAPITAL EXPENDITURE COMMITMENTS
NOTE 21
AUDITORS REMUNERATION
2019 $
2018 $
Estimatedexpenditurecontractedforatbalancedatebutnotyetincurred:
–payablenotlaterthanoneyear 963,246 5,403,802
–payablelaterthanoneyearbutnolaterthantwoyears 168,676 372,696
–payablelaterthantwoyears – 167,687
1,131,922 5,944,185
2019 $
2018 $
Auditfeestoconductexternalaudit–TasmanianAuditOffice 24,790 23,380
Capital/Contractual Commitments
NOTE 20
CONTINGENT LIABILITIESCouncilhasnocontingentliabilities.
24 Northern Midlands Council | Annual Financial Report: 30 June 2019
(b) RIVERWORKS DISTRICTUndersection182oftheWaterManagementAct1999Counciladministersfundsonbehalfof:
TheLakeRiverRiverworksDistrictaimstominimiseenvironmentalharmandriskwithintheboundariesofitsdistrict,complyingwithallstatutoryprovisions.Itisoverseenbyamanagementcommitteethathelditsmostrecentmeetingon27thofJune2019.
2019 $
2018 $
The Lake River Riverworks District
OpeningCashBalance 12,699 12,699
PlusIncome – –
LessExpenditure – –
ClosingCashBalance 12,699 12,699
NOTE 22(a) SPECIAL COMMITTEES (continued)
OPERATINGINCOME
$2018
OPERATINGEXPENDITURE
$2018
CASH & CASH EQUIVALENTS
$2018
Committee Name
AboutCampbellTown 8,352 4,623 16,310
AvocaCommunityCentre 8,134 8,860 12,053
AvocaMuseum&InfoCentre 19,306 8,304 15,405
BishopsbourneCommunityCentre 21,500 25,109 38,131
CampbellTownPool 15,589 21,094 25,376
CampbellTownRecreationGround 8,180 2,096 13,419
CressyHall 5,105 2,944 9,415
CressyPool 33,287 27,188 17,432
CressyRecreationGround 9,337 3,751 11,670
DevonHillResidents 1,030 668 1,776
EppingHall 4,039 4,212 7,453
EvandaleCommunityCentre&WarMemorialHall 26,379 21,941 10,048
LiffeyHall 2,549 1,622 6,373
LongfordRecreationGround 13,096 11,861 6,916
MorvenParkRecreationGround 21,377 18,556 5,782
PerthCommunityCentre 20,765 21,229 10,459
PerthRecreationGround 12,720 8,452 6,666
RossCommunitySportsClub 26,005 24,164 54,229
256,750 216,674 268,913
Northern Midlands Council | Annual Financial Report: 30 June 2019 25
NOTE 23
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS
NOTE 24
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
NOTE 25
RELATED PARTY TRANSACTIONS(i) Responsible Persons NamesofpersonsholdingthepositionofaResponsiblePersonattheCouncilatanytime
duringtheyearare:
Councillors: ClrDickAdams ClrMatthewBrooks–Elected1/11/19 ClrAndrewCalvert ClrJanDavis–Elected1/11/19 MayorDavidDownie–Termended1/11/19 ClrIanGonion ClrLeisaGordon–Termended1/11/19 DeputyMayorRichardGoss Clr/MayorMaryKnowles–ElectedasMayor1/11/19 ClrJanetLambet ClrMichaelPolley Staff: GeneralManager:DesJennings CorporateServicesManager:MareeBricknell RegulatoryandCommunityServicesManager:TrentAtkinson,AmandaBond WorksManager:LeighMcCullagh
2019 $
2018 $
Surplus 3,875,058 3,440,678
Capitalgrantsreceivedspecificallyforneworupgradedassets (2,842,332) (2,388,852)
Contributionofnon–monetaryassets (51,480) (984,788)
Netloss/(gain)ondisposalofproperty,infrastructure,plant&equipment 373,207 860,569
Depreciation 5,701,007 5,550,154
ChangesinOperatingAssetsandLiabilities
– (Increase)/DecreaseinTrade&OtherReceivables (424,855) 302,145
– (Increase)/DecreaseinInventory 6,012 491
– Increase/(Decrease)inCreditors 577,051 520,901
– Increase/(Decrease)inProvisions 53,889 172,402
Net cash provided by operating activities 7,267,557 7,473,700
Liabilitiesarisingfromfinancingactivitiesareliabilitiesforwhichcashflowswere,orfuturecashflowswillbe,classifiedintheStatementofCashFlowsascashflowsfromfinancingactivities.
2019 $
2018 $
OpeningBalance 8,470,000 1,900,000
Changesfromfinancingcashflows:
–CashReceived – 6,570,000
–CashRepayments – –
ClosingBalance 8,470,000 8,470,000
26 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 25
RELATED PARTY TRANSACTIONS (continued)(ii) Councillor Remuneration
2019 TOTAL ALLOWANCES & EXPENSES
ALLOWANCES EXPENSE
Mayor 50,732 14,587 65,319
DeputyMayor 29,286 730 30,017
Councillors 104,668 5,278 109,946
184,686 20,595 205,282
2018 TOTAL ALLOWANCES & EXPENSES
ALLOWANCES EXPENSE
Mayor 51,389 7,211 58,600
DeputyMayor 28,631 2,318 30,949
Councillors 102,783 7,768 110,551
182,803 17,297 200,100
Note: Mayor and Deputy Mayor allowances both include their base Councillor allowance.
(iii) Key Management Personnel Remuneration Bands
REMUNERATION BAND $
NUMBER OF EMPLOYEES 2019
NUMBER OF EMPLOYEES 2018
60,001to80,000 1 –80,001to100,000 – –100,001to120,000 1 –120,001to140,000 – 2140,001to160,000 1 1160,001to180,000 1 –180,001to200,000 – –200,001to220,000 1 1Total 5 4
(iv) Key Management Personnel and Councillors Remuneration
2019 $
2018 $
Shorttermemployeebenefits 624,662 562,227
Postemploymentbenefits 82,258 63,294
Otherlongtermbenefits 8,023 (11,019)
Total 714,943 614,502
Shorttermemployeebenefitsconsistof:
• GrossSalary,includingallformsofconsiderationpaidandpayableforservicesrendered,compensatedabsencesduringtheperiodandsalarysacrificeamounts.
• Vehiclecosts,thetotalcostofprovidingandmaintainingvehiclesprovidedforprivateuse,includingregistration,insurance,fuelandotherconsumables,maintenancecostandparking.
• Otherallowancesandbenefitsincludesallotherformsofemploymentallowances(excludesreimbursementssuchastravel,accommodationormeals),paymentsinlieuofleave,andanyothercompensationpaidandpayable.
Postemploymentbenefitsconsistsof:
• SuperannuationcontributionsmadebyCounciltothesuperannuationfundoftheindividual.Otherlongtermbenefitsconsistsof
• Non-monetarybenefitsincludingannualandlongserviceleavemovements.
(v) Remuneration PrinciplesCouncillors
RemunerationlevelsforCouncillorsissetinaccordancewithRegulation42(2)oftheLocalGovernment(General)Regulations2015.
Senior Executives RemunerationlevelsfortheGeneralManagerissetinaccordancewithaCommonLawContract.
TheemploymenttermsandconditionsofotherseniorexecutivesarecontainedinindividualemploymentcontractsandtheNorthern Midlands Council Enterprise Agreement 2016-2019whichprescribestotalremuneration,superannuation,annualandlongserviceleave,vehicleandsalarysacrificeprovisions.
Inadditiontotheirsalaries,Councilalsoprovidesnon-cashbenefitsandcontributestopost-employmentsuperannuationplansontheirbehalf.
Theperformanceofeachseniorexecutive,includingtheGeneralManager,isreviewedannuallywhichincludesareviewoftheirremunerationpackage.
ThetermsofemploymenttheGeneralManager,containsaterminationclausethatrequirestheCouncilprovideaminimumnoticeperiodofsixmonthspriortoterminationofthecontract,andfortheGeneralManagertoprovideCouncilwithaminimumnoticeperiodofthreemonthspriortoterminationofthecontract.
Northern Midlands Council | Annual Financial Report: 30 June 2019 27
NOTE 25
RELATED PARTY TRANSACTIONS (continued)(vi) Transactions with related parties
2019
NATURE OF TRANSACTION
AMOUNT OF TRANSACTION DURING YEAR
TERMS & CONDITIONS
SupplyofOfficeEquipment,Note1 1,845 30Daytermsoninvoice
SupplyofHousing,Note2 2,410 14Daytermsonrentalinvoice
FeesandCharges,Note3 12,064 Council'sapprovedfees
Supplyoftowingservices,Note4 520 7Daytermsoninvoice
2018
NATURE OF TRANSACTION
AMOUNT OF TRANSACTION DURING YEAR
TERMS & CONDITIONS
SupplyofOfficeEquipment,Note1 1,101 30Daytermsoninvoice
SupplyofHousing,Note2 7,640 14Daytermsonrentalinvoice
FeesandCharges,Note3 8,325 Council'sapprovedfees
Notes:
1. CouncilpurchasedinaggregateduringtheyearofficefurniturefromSecondOfficeLaunceston,acompanywhichhasamemberofCouncilsKMPasadirector.
2. Councilprovides8unitsforresidentialaccommodationforagedanddisadvantagedinthetownshipsofCampbellTownandEvandaleduringtheyearoneoccupantwasarelativetoamemberofCouncilsKMP.Rentalwasbilledbasedonnormalratesforsuchaccommodationandwasdueandpayableundernormalpaymentterms.
3. DevelopmentfeeswerereceivedinrelationtoapplicationsfromacompanywhichisassociatedwithaCouncilKMP.TheapplicationsrelatetolandinWellingtonStreet,DrummondStreetandPatonStreet(2018-WellingtonStreet,DrummondStreetandPatonStreet).
4. CouncilpurchasedinaggregateduringtheyeartowingservicesfromNMTowingPtyLtd,acompanywhichhasamemberofCouncilsKMPasadirector.
Nobalancesrelatingtothesetransactionswereoutstandingatyearend,noprovisionfordoubtfuldebtshasbeenmadeinrelationtoanyofthesetransactions.
(vii) Loans and guarantees to/from related parties NoloanandguaranteeamountshavebeennotifiedtotheGeneralManager.
(viii) Commitments to/from related parties NocommitmentshavebeennotifiedtotheGeneralManager.
(ix) Transactions with related parties that have not been disclosedMostoftheentitiesandpeoplethatarerelatedpartiesofcouncilliveandoperatewithinthemunicipality.
Therefore,onaregularbasisordinarycitizentransactionsoccurbetweenCouncilanditsrelatedparties.
Someexamplesinclude:
• Paymentofratesonaprimaryresidence/farm• Dogregistrations• UseofCouncil’srecreationalfacilities
Councilhasnotincludedthesetypesoftransactioninitsdisclosure,wheretheyaremadeonthesametermsandconditionsavailabletothegeneralpublic.
28 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 26
FINANCIAL INSTRUMENTS
(a) ACCOUNTING POLICY, TERMS AND CONDITIONS
FINANCIAL INSTRUMENTS NOTE ACCOUNTING POLICY TERMS & CONDITIONS
Financial Assets
CashandCashEquivalents Cashandcashequivalentsarevaluedatfacevalue.Interestisrecognisedasitaccrues.Investmentsarevaluedatcost.Investmentsareheldtomaximiseinterestreturnsofsurpluscash.Interestrevenuesarerecognisedastheyaccrue.
Oncalldepositsreturnedafloatinginterestrateof1.0%(0.8%2017/18).Fundsreturnedfixedinterestratesbetween1.48%and3.37%(1.82%and3.37%2017/18).
RateDebtors 11 Ratedebtorsarecarriedatnominalamountsdueplusinterestandpenalty.Ratedebtorsarechargesattachedtothepropertyandarerecoverableonsale,thereforeallowanceforimpairmentisonlymadewhenitisunlikelythepropertycouldbesoldforanamountwhichwillcoverthecostsofsale.
Ratesarepayablebythreeequalinstalmentsduringtheyearoralternativelybyonepaymentwithin30daysofdemand,whichprovidesadiscountof1.0%(anysuchdiscountallowedisshownasanexpenseofCouncilinitsincomestatement).OverdueRatesattractapenaltyof5%(5%2017/18),anysuchpenaltyimposedisshownasincomeofCouncilinitsIncomeStatement.Arrearsattractinterestwhichisappliedonaregularbasistothepropertyatarateof7.5%p.a.(7.5%p.a.2017/18).FurthermoreCouncilinstigatescollectionproceedingsinaccordancewithprovisionsoftheLocalGovernmentAct1993(asamended),foranyamountswhichremainunpaidoutsideofCouncil’sapprovedpaymentoptions.
TradeDebtors 11
Receivablesarecarriedatnominalamountsduelessanyallowanceforimpairment.Animpairmentlossisrecognisedwhencollectioninfullisnolongerprobable.Abilitytocollectoverdueaccountsisassessedonanongoingbasis.
Paymentisrequiredwithin30daysofissueoftheaccount.Shouldamountsremainunpaidbeyond30daysCouncilinstigatescollectionproceedingsinaccordancewithprovisionsoftheLocalGovernmentAct1993(asamended).
Financial Liabilities
TradeandOtherPayables 16 LiabilitiesarerecognisedforamountstobepaidinthefutureforgoodsandservicesprovidedtoCouncilasatbalancedate.
Generalcreditorsareunsecured,notsubjecttointerestchargesandarenormallysettledwithinCouncilsstandardorderingtermsof30dayfromdateofpurchase.
Northern Midlands Council | Annual Financial Report: 30 June 2019 29
NOTE 26
FINANCIAL INSTRUMENTS (continued)
(b) FINANCING ARRANGEMENTS Unrestrictedaccesswasavailableatthereportingdatetothefollowinglinesofcredit:
2019 $
2018 $
TotalCorporateCreditCardsFacilityLimit 50,000 50,000
CorporateCreditCardFacilityLimitUsedatReportingDate (3,639) (3,910)
AvailableatreportingdateCorporateCreditCard 46,361 46,090
Noothercreditstandbyarrangementsandloanfacilitiesareusedoravailabletobeusedasat30/6/2019(30/6/2018).
(c) FINANCIAL RISK EXPOSURE AND MITIGATION TheGeneralManagerhasoverallresponsibilityfortheestablishmentandoversightoftheCouncil’srisk
managementframework.RiskmanagementpolicesareestablishedtoidentifyandanalyserisksfacedbytheCouncil,tosetappropriaterisklimitsandcontrols,andtomonitorriskandadherencetolimits.
TheriskassociatedwithCouncilsmainfinancialinstrumentsandourpracticesforminimisingtheserisksaredetailedbelow.
Credit RiskCreditriskrepresentsthelossthatwouldberecognisedifcounterpartiesfailtoperformascontracted,andarisesprincipallyfromtradeandotherreceivablesandcashandinvestments.Thecarryingamountoffinancialassetsrecordedinthefinancialstatements,netofanyallowancesforimpairmentlosses,representstheCouncil’smaximumexposuretocreditriskwithouttakingaccountofanycollateralorothersecurity.ReferenceshouldbemadetotheInterestRateRisktableonthefollowingpageforthecarryingamountofCouncil’sfinancialassetsatreportingdate.
TohelpmanagecreditriskCouncilensuresfinancialinstitutionsholdingCouncil’scashdepositsandinvestmentshavesufficientsecuritybyinvestinganappropriatelyratedFinancialInstitutions
Liquidity Risk LiquidityriskistheriskthatCouncilwillnotbeabletomeetitsfinancialobligationsastheyfalldue.
Council’sapproachtomanagingliquidityistoensurethatitwillalwayshavesufficientliquiditytomeetitsliabilitiesastheyfalldue.Duetosignificantamountsofreadilyavailablecashtheexposuretoliquidityriskisdeemedinsignificant.CouncilfallswellwithinthelendingbenchmarkssetbyTreasury.
Market RiskMarketriskistheriskthatthefairvalueorfuturecashflowsofCouncil’sfinancialinstrumentswillfluctuatebecauseofchangesinmarketprices,suchasinterestrates.TheCouncil’sexposuretomarketrisksisprimarilythroughinterestrateriskwithonlyinsignificantexposuretootherpricerisksandnodirectexposuretoforeigncurrencyrisk.
Council’sliabilitiesareeithernon-interestbearingoratfixedrates,sothereisnoongoingexposuretointerestrateriskforexistingfinancialliabilities.Councilobtainsloanswithcompetitivefixedinterestratestomanageitsexposuretointerestrateriskwhenloansaretaken.
AcomponentofCouncil’scashissubjecttofloatinginterestrates.ItispredictedanyvariationsinfuturecashflowsfrominterestratemovementswillnothaveamaterialeffectonCouncil’sincome.Interestrateriskondepositsismanagedbyadoptingpracticesthatensures:
• ConformitywithStateandFederalregulationsandstandards,• Adequatesafety,• Appropriateliquidity,• Monitoringofreturnoninvestments,• Staggeringmaturitydatestoprovideforinterestratevariations,• Benchmarkingofreturnsandcomparisonswithbudget.
30 Northern Midlands Council | Annual Financial Report: 30 June 2019
2019FLOATING INTEREST
RATE $
1 YEAR OR LESS
$
1 TO 5 YEARS
$
OVER 5 YEARS
$
NON INTEREST BEARING
$
TOTAL $
Assets
Current Assets
Cash&CashEquivalents 2,817,235 509,229 600 3,327,064
FinancialAssets 6,914,434 6,914,434
Trade&OtherReceivables
– Rates 301,645 301,645
– Sundry 740,919 740,919
RevenueAccrual 104,148 104,148
Non Current Assets
Trade&OtherReceivables
– Loanstocommunityorganisations 1,900,000 1,900,000
InvestmentTermDeposits 6,550,000 6,550,000
EquityInvestment
– TasWater 46,295,474 46,295,474
Total Financial Assets 2,817,235 7,725,308 6,550,000 – 49,041,141 66,133,684
Liabilities
Current Liabilities
Trade&OtherPayables
– SundryCreditors 1,455,119 1,455,119
– MoniesheldinTrust 587,617 587,617
Non Current Liabilities
InterestbearingLoans&Borrowings 8,470,000 8,470,000
Total Financial Liabilities – – – – 10,512,736 10,512,736
Net Financial Assets/(Liabilities)
2,817,235 7,725,308 6,550,000 – 38,528,405 55,620,948
2018FLOATING INTEREST
RATE $
1 YEAR OR LESS
$
1 TO 5 YEARS
$
OVER 5 YEARS
$
NON INTEREST BEARING
$
TOTAL $
Assets
Current Assets
Cash&CashEquivalents 1,812,917 3,500,000 600 5,313,517
FinancialAssets 8,869,496 8,869,496
Trade&OtherReceivables
– Rates 325,898 325,898
– Sundry 294,521 294,521
RevenueAccrual 101,436 101,436
Non Current Assets
Trade&OtherReceivables
– Loanstocommunityorganisations 1,900,000 1,900,000
InvestmentTermDeposits 6,550,000 6,550,000
AvailableforSaleInvestment
– TasWater 40,461,498 40,461,498
Total Financial Assets 1,812,917 12,695,394 6,550,000 – 42,758,055 63,816,366
Liabilities
Current Liabilities
Trade&OtherPayables
– SundryCreditors 1,104,942 1,104,942
– MoniesheldinTrust 360,743 360,743
Non Current Liabilities
InterestbearingLoans&Borrowings 8,470,000 8,470,000
Total Financial Liabilities – – – – 9,935,685 9,935,685
Net Financial Assets/(Liabilities)
1,812,917 12,695,394 6,550,000 – 32,822,370 53,880,681
NOTE 26(c) FINANCIAL RISK EXPOSURE AND MITIGATION (continued) Council’sexposuretointerestraterisk,repricingmaturitiesandtheeffectiveinterestratesonfinancialinstrumentsatbalancedateisdetailedbelow:
Northern Midlands Council | Annual Financial Report: 30 June 2019 31
2019
INTEREST RATE RISK
CARRYING AMOUNT
SUBJECT TO INTEREST
-0.5% -50 BASIS POINTS
0.5% 50 BASIS POINTS
PROFIT EQUITY PROFIT EQUITY
$ $ $ $ $
Financialassets
– Cash&CashEquivalents,andFinancialAssets
10,241,498 (51,207) (51,207) 51,207 51,207
– NonCurrentInvestmentsTermDeposits
6,550,000 (32,750) (32,750) 32,750 32,750
– Loans&Receivables 301,645 (1,508) (1,508) 1,508 1,508
(85,465) (85,465) 85,465 85,465
2018
INTEREST RATE RISK
CARRYING AMOUNT
SUBJECT TO INTEREST
-0.5% -50 BASIS POINTS
0.5% 50 BASIS POINTS
PROFIT EQUITY PROFIT EQUITY
$ $ $ $ $
Financialassets
– Cash&CashEquivalents,andFinancialAssets
14,183,013 (70,915) (70,915) 70,915 70,915
– NonCurrentInvestmentsTermDeposits
6,550,000 (32,750) (32,750) 32,750 32,750
– Loans&Receivables 325,898 (1,629) (1,629) 1,629 1,629
(105,294) (105,294) 105,294 105,294
(e) SENSITIVITY DISCLOSURE ANALYSIS Takingintoaccountpastperformances,futureexpectations,economicforecasts,andmanagement’s
knowledgeandexperienceofthefinancialmarkets,Councilbelievesthefollowingmovementsare“reasonablypossible”overthenext12months(BaseratesaresourcedfromtheFederalBankofAustralia):Aparallelshiftof+0.5%and-0.5%inmarketinterestrates(AUD)fromyearendratesof1.25%.ThetablebelowdisclosestheimpactonnetoperatingresultandequityforeachcategoryoffinancialinstrumentheldbyCouncilatyear-end,iftheabovemovementsweretooccur.
NOTE 26(c) FINANCIAL RISK EXPOSURE AND MITIGATION (continued)
Credit Risk Themaximumexposuretocreditriskatbalancedateinrelationtoeachclassofrecognised
financialassetisrepresentedbythecarryingamountofthoseassetsasindicatedintheStatementofFinancialPosition.
(d) EXPECTED CREDIT LOSS Aprovisionforexpectedcreditlossisrecognisedwhenthereisobjectiveevidencethatan
individualreceivableisimpaired.
Themovementintheallowanceforimpairmentfortradeandratereceivablesduringtheyearwasasfollows:
2019 $
2018 $
Balanceat1July 1,919,415 1,500,500
Chargefortheyear 459,934 418,915
Amountspreviouslychargednolongerimpaired (112,601) –
Balance30June 2,266,748 1,919,415
32 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 26 (continued)
(f) CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
Carryingamountsclassifiedas: 2019 $
2018 $
Financial assets
Loan&Receivables 3,046,712 2,621,855
Cash&CashEquivalents,andFinancialAssets 10,241,498 14,183,013
NonCurrentInvestmentsTermDeposits 6,550,000 6,550,000
EquityInvestment,TasWater 46,295,474 66,133,684 40,461,498 63,816,366
Financial Liabilities measured at Amortised Cost
Payables 2,042,736 1,465,685
Loans&Borrowings 8,470,000 10,512,736 8,470,000 9,935,685
Net Financial Assets / (Liabilities) 55,620,948 53,880,681
(g) ANALYSIS OF UNIMPAIRED FINANCIAL ASSETS
2019 $
2018 $
RateDebtors,notpastdue – 40,851
RateDebtors,lessthan30dayspastdue 1,458 –
RateDebtors,greaterthan30andlessthan60dayspastdue 585 –
RateDebtorsover60dayspastdue 299,602 285,047
TradeDebtorsSundry,notpastdue 451,352 238,854
TradeDebtorsSundry,lessthan30dayspastdue 69,604 10,201
TradeDebtorsSundry,over30dayslessthan60Dayspastdue 4,473 51
TradeDebtorsSundry,over60dayspastdue 215,490 45,415
AccruedIncome,Current 104,148 101,436
LoanReceivable,notpastdue 1,900,000 1,900,000
3,046,712 2,621,855
(h) FAIR VALUE HIERARCHY Thetablebelowanalysesfinancialinstrumentscarriedatfairvaluebyvaluationmethod.The
differentlevelshavebeendefinedasfollows: Level 1:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities
Level 2:inputsotherthanquotedpricesincludedwithinlevelonethatareobservablefortheassetorliability,eitherdirectly(i.e.prices)orindirectly(i.e.derivedfromprices)
Level 3:inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata
2019 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
EquityInvestment – – 46,295,474 46,295,474
Financialassetsatfairvaluethroughthecomprehensiveincomestatement – – – –
Financialassetsheldfortrading – – – –
Derivativefinancialassets – – – –
2018 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
EquityInvestment – – 40,461,498 40,461,498
Financialassetsatfairvaluethroughthecomprehensiveincomestatement – – – –
Financialassetsheldfortrading – – – –
Derivativefinancialassets – – – – TherewerenotransfersbetweenLevel1and2ineitherperiod.
Reconciliation of Level 3 Fair Value Movements 2019 $
2018 $
OpeningBalance 40,461,498 39,943,079
Gains(losses)recognisedinothercomprehensiveincome:
ChangeinFairValueofInvestmentinWaterCorporation 5,833,976 518,419
ClosingBalance 46,295,474 40,461,498
Northern Midlands Council | Annual Financial Report: 30 June 2019 33
NOTE 27
MANAGEMENT INDICATORS
(a) FINANCIAL MANAGEMENT INDICATORS
(i) Underlying Surplus/(Deficit)
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
RecurrentIncome* 18,910 17,776 17,096 16,855
LessRecurrentExpenditure 18,014 17,714 17,775 17,403
UnderlyingSurplus/(Deficit) 0 896 62 (679) (548)
*Recurrentincomeexcludesincomereceivedspecificallyforneworupgradedassets,physicalresourcesreceivedfreeofchargeorotherincomeofacapitalnature.Commentary—Anegativeresultindicatesadeficitwhichisunabletobesustainedinthelongterm,whileCouncilhashadanegativeresultintwoofthelastfouryearsCouncilbelievesitissustainableinthelongtermandcontinuestoworktowardsachievinganongoingpositiveresult.
(ii) Underlying Surplus Ratio
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
UnderlyingSurplusorDeficit 896 62 (679) (548)
DividedbyRecurrentIncome* 18,910 17,776 17,096 16,855
UnderlyingSurplusRatio% 0% 5% 0% –4% –3%
Commentary—Anegativeresultindicatesadeficitwhichisunabletobesustainedinthelongterm,whileCouncilhashadanegativeresultintwoofthelastfouryearsCouncilbelievesitissustainableinthelongtermandcontinuestoworktowardsachievinganongoingpositiveresult.
(iii) Net Financial Assets/(Liabilities)
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
LiquidAssets 11,388 14,905 13,629 11,140
LessTotalLiabilities 11,736 11,105 3,841 2,852
NetFinancialAssets/(Liabilities) 0 (348) 3,800 9,788 8,288
Commentary—ApositiveresultindicatesCouncil’sabilitytomeetitsliabilitiesfromitsliquidassets.WhileCouncilhasanegativeresultinthemostrecentyear,itcurrentlyholds$6,550,000asnoncurrentfinancialassetsintermdeposits,and$1,900,000asanoncurrentloanreceivablewhichallmatureatthesametimeasCouncil’sloanliabilitiesof$8,470,000falldue,meaningCouncilisinapositiontobeabletomeetitsliabilitieswhentheyfalldue.
(iv) Net Financial Assets/(Liabilities) Ratio
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
NetFinancialAssets/(Liabilities) (348) 3,800 9,788 8,288
DividedbyRecurrentIncome* 18,910 17,781 17,096 16,855
NetFinancialAssets/(Liabilities) 0% to (50)% –2% 21% 57% 49%
Commentary—ApositiveresultindicatesCouncil’sabilitytomeetitsliabilitiesfromitsliquidassets.WhileCouncilhasanegativeresultinthemostrecentyear,itcurrentlyholds$6,550,000asnoncurrentfinancialassetsintermdeposits,and$1,900,000asanoncurrentloanreceivablewhichallmatureatthesametimeasCouncil’sloanliabilitiesof$8,470,000falldue,meaningCouncilisinapositiontobeabletomeetitsliabilitieswhentheyfalldue.
34 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 27
MANAGEMENT INDICATORS (continued)
(b) ASSET MANAGEMENT INDICATORS
(i) Asset Consumption RatioAnassetconsumptionratiohasbeencalculatedinrelationtoeachassetclassrequiredtobeincludedinthelong–termstrategicassetmanagementplanofCouncil.
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
Buildings
DepreciatedReplacementCost 25,751 25,115 23,901 23,474
DividedbyCurrentReplacementCost 53,822 51,720 48,728 47,071
AssetConsumptionRatio% 60% 48% 49% 49% 50%
Road & Bridge Infrastructure
DepreciatedReplacementCost 164,950 158,078 156,749 156,443
DividedbyCurrentReplacementCost 250,155 238,036 233,693 232,469
AssetConsumptionRatio% 60% 66% 66% 67% 67%
Stormwater & Drainage
DepreciatedReplacementCost 31,426 29,813 29,106 25,344
DividedbyCurrentReplacementCost 41,085 38,763 37,522 34,204
AssetConsumptionRatio% 60% 76% 77% 78% 74%
Commentary—Theseratiosshowthedepreciatedreplacementcostofclassesofdepreciableassetsrelativetotheir“asnew”(replacement)value.Theythereforeshowtheaverageproportionofnewconditionleftintheassets.CouncilsratiosforRoadsandBridgeInfrastructureandStormwaterandDrainagehaveconsistentlyoverthefouryearperiodbeenabovetheestablishedbenchmarkof60%indicating,anappropriatelevelofinvestmentinrenewaloftheseassetclasses.TheBuildingsratiofellfrom65%in2015toanaverageof49%inmostrecentfouryearsabove.Thisprimarilyoccurredasaresultofboththecomponentisationofbuildingsinto6partswiththeallocationofvaryinglivestothesecomponentpartsandtherevaluationofthebuildingassetinthe2016year.AsaresultoftheoutcomesofthisprocessCouncilwillcontinuetoregularlyreviewitslevelofongoinginvestmentinrenewalofitsBuildingassets,inordertoactivelyworktowardachievementofthebenchmark.
(ii) Asset Renewal Funding RatioAnassetrenewalfundingratiohasbeencalculatedinrelationtoeachassetclassrequiredtobeincludedinthelong–termstrategicassetmanagementplanofCouncil.
BenchMark 2019 $,000s
2018 $,000s
2017 $,000s
2016 $,000s
Buildings
ProjectedCapitalFundingOutlays** 5,664 5,920 5,920 N/a
DividedbyProjectedCapitalExpenditureFunding*** 4,185 4,185 4,185 N/a
AssetRenewalFundingRatio% 90–100% 135% 141% 141% N/a
Road & Bridge Infrastructure
ProjectedCapitalFundingOutlays** 29,509 29,509 34,735 23,161
DividedbyProjectedCapitalExpenditureFunding*** 24,708 24,708 23,842 24,305
AssetRenewalFundingRatio% 90–100% 119% 119% 146% 95%
Stormwater & Drainage
ProjectedCapitalFundingOutlays** 2,150 600 600 2,094
DividedbyProjectedCapitalExpenditureFunding*** 390 390 390 4,800
AssetRenewalFundingRatio% 90–100% 551% 154% 154% 44%
**CurrentvalueofprojectedcapitalfundingoutlaysforanassetidentifiedinCouncil'slong-termfinancialplan.
***ValueofprojectedcapitalexpenditurefundingforanassetidentifiedinCouncil'slong-termstrategicassetmanagementplan.
Commentary—Thisratiomeasuresthecapacitytofundassetreplacementrequirements,bycomparingfundingoutlaysintheCouncilslong-termfinancialplanwithprojectedcapitalexpenditureinCouncil’slong-termstrategicassetmanagementplans.
InmostyearstheassetclassesreportedhaveexceededthebenchmarkwithRoadsandBridges.Stormwaterdidnotmeetthebenchmarkin2016,astheAssetManagementPlanforthisclassadoptedbyCouncilinApril2016includesadditionalexpenditurenotyetupdatedtothelong-termfinancialplan.CounciladoptedanupdatedLong-TermFinancialPlaninthe2015/16financialyear,whichincludesthisadditionalexpenditure.CouncilsBuildingassetmanagementplanwasfirstadoptedbyCouncilinFebruary2016,ratioshaveonlybeencalculatedforthefollowingfinancialyears.
Northern Midlands Council | Annual Financial Report: 30 June 2019 35
NOTE 27
MANAGEMENT INDICATORS (continued)(iii) Asset Sustainability Ratio
BenchMark
2019 $,000S
2018 $,000S
2017 $,000S
2016 $,000S
CapitalExpenditureonReplacement/Renewalofexistingassets 8,457 5,983 4,198 6,625
DividedbyAnnualDepreciationExpense 5,701 5,550 5,378 5,336
AssetSustainabilityRatio% 100% 148% 108% 78% 124%
Commentary—Thisratiocomparestherateofspendingonexistinginfrastructure,property,plantandequipmentthroughrenewing,restoringandreplacingexistingassetsagainstdepreciation.Councilsaverageratioof115%overthepastfouryearsisabovethebenchmarkof100%,howeverthisisalongtermindicatorasdepreciationcoststendtoberelativelystableoveraperiodoftime,whereascapitalrenewalcantendtobemuchmorevariable.
NOTE 28
FAIR VALUE MEASUREMENTCouncilmeasuresandrecognisesthefollowingassetsatfairvalueonarecurringbasis:
• Property,plant&infrastructure• Land• Landunderroads• Buildings• RoadsInfrastructure• Bridges• Stormwater&Drainage• InvestmentinWaterCorporation
Councildoesnotmeasureanyliabilitiesatfairvalueonarecurringbasis.
(a) FAIR VALUE HIERARCHY AASB13FairValueMeasurementrequiresallassetsandliabilitiesmeasuredatfairvaluetobe
assignedtoalevelinthefairvaluehierarchyasfollows:
Level 1:Unadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.
Level 2:InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.
Level 3:Unobservableinputsfortheassetorliability.
ThefollowingtableshowstheassignedlevelforeachassetandliabilityheldatfairvaluebytheCouncil,togetherwitheachitemscarryingvalue.
Thefairvaluesoftheassetsaredeterminedusingvaluationtechniqueswhichmaximisetheuseofobservabledata,whereitisavailable,andminimisetheuseofentityspecificestimates.Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theassetisincludedinlevel3.
ThisisthecaseforCouncilinfrastructureassets,whichareofaspecialistnatureforwhichthereisnoactivemarketforsimilaroridenticalassets.Theseassetsarevaluedusingacombinationofobservableandunobservableinputs.
CAPITAL RENEWAL
EXPENDITURE $'000
CAPITAL NEW/UPGRADE
EXPENDITURE $'000
TOTAL CAPITAL EXPENDITURE
$'000
Land – 1,074 1,074
Buildings 4,025 2,154 6,179
HeritageAssets – 21 21
Furniture,Fittings,OfficeEquipment&Computers 71 147 218
Fleet 660 – 660
Plant 46 1,194 1,240
RoadInfrastructure 2,100 – 2,100
Bridges 1,427 763 2,190
Stormwater&Drainage 128 438 566
Total 8,457 5,791 14,248
36 Northern Midlands Council | Annual Financial Report: 30 June 2019
NOTE 28(a) FAIR VALUE HIERARCHY (continued)
AS AT 30 JUNE 2019
NOTE LEVEL 1 $
LEVEL 2 $
LEVEL 3 $
TOTAL$Recurring fair value measurements
Land 14 – 13,540,357 – 13,540,357
Landunderroads 14 – 14,491,255 – 14,491,255
Buildings 14 – – 25,751,212 25,751,212
RoadsInfrastructure 14 – – 141,575,705 141,575,705
Bridges 14 – – 23,374,129 23,374,129
Stormwater&Drainage 14 – – 31,425,530 31,425,530
InvestmentinWaterCorporation 15 – – 46,295,474 46,295,474
– 28,031,612 268,422,050 296,453,662
AS AT 30 JUNE 2018
NOTE LEVEL 1 $
LEVEL 2 $
LEVEL 3 $
TOTAL $Recurring fair value measurements
Land 14 – 12,466,343 – 12,466,343
Landunderroads 14 – 14,474,775 – 14,474,775
Buildings 14 – – 25,114,657 25,114,657
RoadsInfrastructure 14 – – 137,109,763 137,109,763
Bridges 14 – – 20,968,530 20,968,530
Stormwater&Drainage 14 – – 29,813,359 29,813,359
InvestmentinWaterCorporation 15 – – 40,461,498 40,461,498
– 26,941,118 253,467,807 280,408,925
Transfers between levels of the hierarchyCouncil’spolicyistorecognisetransfersinandoutofthefairvaluehierarchylevelsasattheendofthereportingperiod.
Therewerenotransfersbetweenlevels1and2duringtheyear.
(b) HIGHEST AND BEST USE AASB13requiresthefairvalueofnon-financialassetstobecalculatedbasedontheir“highestand
bestuse”,allassetsvaluedatfairvalueinthisnotearebeingusedfortheirhighestandbestuse.
(c) VALUATION TECHNIQUES AND SIGNIFICANT INPUTS USED TO DERIVE FAIR VALUES(i) Land
LandfairvaluesweredeterminedbyW.P.CoverdaletheValuer-Generalasat1July2013.Level2valuationinputswereusedtovaluelandinfreeholdtitleaswellaslandusedforspecialpurposes,whichisrestrictedinuseundercurrentplanningprovisions.Salespricesofcomparablelandsitesincloseproximityareadjustedfordifferencesinkeyattributessuchaspropertysize.Themostsignificantinputintothisvaluationapproachispricepersquaremetre.
CouncilOfficershaveappliedadjustmentfactorsprovidedbytheValuer-Generaltodetermineavaluationat1July2017.
(ii) Land Under Roads Councilrecognisedalllandunderroadseffective1July2015inthe2015/16financialyear,thisvaluationofLandUnderRoadswasdeterminedbyCouncilsOfficersthroughtheapplicationofalandunderroadsrateforeachcategoryofland(Residential,Commercial,Industrial,Community,PrimaryProductionandOther),determinedbyW.P.CoverdaletheValuerGeneralasat1July2014,fortheNorthernMidlandsMunicipality.TheValuerGeneralderivedtheratesbydividinglandvaluesbylandareabypropertyclasscategoryineachmunicipality.A30%discountwasappliedtoaveragevaluesineachcategory(Residential,Commercial,Industrial,CommunityandOther)toequatetounimprovedvalues,nodiscountwasappliedtothePrimaryProductionpropertyclasscategory.AstheValuerGeneralhasnotissuedanyadjustmentfactorsinrelationtothisvaluation,noindexationhasbeenappliedbyCouncilOfficerstoitsLandUnderRoadsasset.
(iii) BuildingsThefairvalueofBuildingswasdeterminedbyMrMurrayABugg,DipVal.AAPL,IndependentCertifiedValuerasat1July2015.CouncilOfficershaveappliedaNonResidentialBuildingindexfactorobtainedfromtheAustralianBureauofStatisticstodetermineavaluationasat1July2018.Councilofficerscomponentisedthefairvalueofbuildingsinto6components,beingstructure,roofcladding,externalfabric,internalfit-out,servicesandsiteservices,witheachofthesecomponentsbeingassigneduniquelives.
WherethereisamarketforCouncilbuildingassets,fairvaluehasbeenderivedfromthesalespricesofcomparablepropertiesafteradjustingfordifferencesinkeyattributessuchaspropertysize.Themostsignificantinputintothisvaluationapproachwaspricepersquaremetre.
WhereCouncilbuildingsareofaspecialistnature(e.g.heritagebuildings,communitybuildings)andthereisnoactivemarketfortheassets,fairvaluehasbeendeterminedonthebasisofreplacementwithanewassethavingsimilarservicepotential.Thegrosscurrentvalueshavebeenderivedfromreferencetomarketdataforrecentprojectsandcostingguides.
Indeterminingthelevelofaccumulateddepreciationtheassethasbeendisaggregatedintosignificantcomponentswhichexhibitusefullives.Allowancehasbeenmadeforthetypicalassetlifecycleandrenewaltreatmentsofeachcomponent,residualvalueatthetimetheassetisconsideredtobenolongeravailableforuse.
Northern Midlands Council | Annual Financial Report: 30 June 2019 37
NOTE 28(c) VALUATION TECHNIQUES AND SIGNIFICANT INPUTS USED TO DERIVE FAIR VALUES (continued)
Whiletheunitratesbasedonsquaremetrescanbesupportedbymarketevidence(level2),theestimatesofresidualvalueandusefullifethatareusedtocalculateaccumulateddepreciationcompriseunobservableinputs(level3).Wheretheseotherinputsaresignificanttothevaluationtheoverallvaluationhasbeenclassifiedaslevel3.
(iv) Infrastructure assets AllCouncilinfrastructureassetswerefairvaluedusingwrittendowncurrentreplacementcost(CRC).Thisvaluationcomprisestheasset’sgrossreplacementcostlessaccumulateddepreciationcalculatedonthebasisofsuchcosttoreflectthealreadyconsumedorexpiredfutureeconomicbenefitsoftheasset.Councilfirstdeterminedthegrosscostofreplacingthefullservicepotentialoftheassetandthenadjustedthisamounttotakeaccountoftheexpiredservicepotentialoftheasset.
CRCwasmeasuredbyreferencetothelowestcostatwhichthegrossfutureeconomicbenefitsoftheassetcouldcurrentlybeobtainedinthenormalcourseofbusiness.Theresultingvaluationreflectsthecostofreplacingtheexistingeconomicbenefitsbasedonanefficientsetofmodernequivalentassetstoachievetherequiredlevelofserviceoutput.
Theunitrates(labourandmaterials)andquantitiesappliedtodeterminetheCRCofanassetorassetcomponentwerebasedona“Greenfield”assumptionmeaningthattheCRCwasdeterminedasthefullcostofreplacementwithanewassetincludingcomponentsthatmaynotneedtobereplaced,suchasearthworks.
ThelevelofaccumulateddepreciationforinfrastructureassetswasdeterminedbasedontheageoftheassetandtheusefullifeadoptedbyCouncilfortheassettype.EstimatedusefullivesandresidualvaluesaredisclosedinNote1.
ThecalculationofCRCinvolvesanumberofinputsthatrequirejudgementandarethereforeclassedasunobservable.Whilethesejudgementsaremadebyqualifiedandexperiencedstaff,differentjudgementscouldresultinadifferentvaluation.
ThemethodsforcalculatingCRCaredescribedunderindividualassetcategoriesbelow.
Roads InfrastructureAfullValuationofRoadsandStreetswasundertakenbyMoloneyAssetManagementSystemsasat1July2014.CouncilOfficershaveappliedaRoadandBridgeConstructionindexfactorobtainedfromtheAustralianBureauofStatisticstodetermineavaluationasat1July2018.
Councilcategorisesitsroadinfrastructureintourbanandruralroadsandthenfurthersub-categorisestheseintosealedandunsealedroads.Urbanroadsandruralroadsaremanagedinsegmentsofvaryinglengths.Allroadsegmentsarethencomponentisedintoformation,pavement,sub-pavementandseal(whereapplicable).Councilassumesthatenvironmentalfactorssuchassoiltype,climateandtopographyareconsistentacrosseachsegment.Councilalsoassumesasegmentisdesignedandconstructedtothesamestandardandusesaconsistentamountoflabourandmaterials.Aspartofthevaluationprocesseachsegmentofroadwasindividuallyassessed.
CRCisbasedontheroadareamultipliedbyaunitprice;theunitpricebeinganestimateoflabourandmaterialinputs,servicescosts,andoverheadallocations.Forinternalconstructionestimates,materialandservicespricesarebasedonexistingsuppliercontractratesorsupplierpricelistsandlabourwageratesarebasedontheNorthern Midlands Council Enterprise Agreement 2016-2019.Whereconstructionisoutsourced,CRCisbasedontheaverageofcompletedsimilarprojectsoverthelastfewyears.
BridgesAfullvaluationofBridgeswasundertakenbyMoloneyAssetManagementSystemsasat1July2014.Eachbridgewasassessedindividuallyandcomponentisedintosub-assetsrepresentingthedeckandsub-structure.Thevaluationisbasedonthematerialtypeusedforconstructionandthedeckandsub-structurearea.CouncilOfficershaveappliedaRoadandBridgeConstructionindexfactorobtainedfromtheAustralianBureauofStatisticstodetermineavaluationasat1July2018.
Stormwater and DrainageAfullvaluationofStormwaterandDrainagewasundertakenbyConsultingEngineersPitt&Sherryasat1July2016.Similartoroads,drainageassetsaremanagedinsegments;pitsandpipesbeingthemajorcomponents.Consistentwithroads,Councilassumesthatenvironmentalfactorssuchassoiltype,climateandtopographyareconsistentacrosseachsegmentandthatasegmentisdesignedandconstructedtothesamestandardandusesaconsistentamountoflabourandmaterials.CouncilOfficershaveappliedaRoadandBridgeConstructionindexfactorobtainedfromtheAustralianBureauofStatisticstodetermineavaluationasat1July2018.
CRCisbasedontheunitpriceforthecomponenttype.Forpipes,theunitpriceismultipliedbytheasset’slength.Theunitpriceforpipesisbasedontheconstructionmaterialaswellasthedepththepipeislaid.
Investment in Water Corporation RefertoNote15forValuationTechniquesandInputsandSensitivities.
(d) CHANGES IN RECURRING LEVEL 3 FAIR VALUE MEASUREMENTS Thechangesinlevel3assetswithrecurringfairvaluemeasurementsaredetailedinNote14(Property,
PlantandInfrastructure).
(e) VALUATION PROCESSES Council’scurrentpolicyforthevaluationofproperty,infrastructure,plantandequipmentand
investmentinwatercorporationissetoutinNote1(f).
Non-recurringfairvaluemeasurementsaremadeatthepointofreclassificationbyaregisteredvaluer.
(f) ASSETS AND LIABILITIES NOT MEASURED AT FAIR VALUE BUT FOR WHICH FAIR VALUE IS DISCLOSED Thecarryingamountsoftradereceivablesandtradepayablesareassumedtoapproximatetheirfair
valuesduetotheirshort-termnature(Level2).
38 Northern Midlands Council | Annual Financial Report: 30 June 2019
STATEMENT BY GENERAL MANAGERI,DesJenningscertifythatinmyopinion:-
ThefinancialreportpresentsfairlythefinancialpositionoftheNorthernMidlandsCouncilasat30June2019,theresultsofitsoperationsfortheyearthenendedandthecashflowsoftheCouncil,inaccordancewiththeLocalGovernmentAct1993(asamended),AustralianAccountingStandards(includinginterpretations)andotherauthoritativepronouncementsissuedbytheAustralianAccountingStandardsBoard.
Des JenningsGENERAL MANAGER
DatedatLongfordthis14thdayofAugust2019.
Northern Midlands Council | Annual Financial Report: 30 June 2019 39
INDEPENDENT AUDIT REPORT
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I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report of the current period. These matters were addressed in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. Why this matter is considered to be one of the most significant matters in the audit
Audit procedures to address the matter included
Land, buildings and infrastructure assets Refer to note 8, 14 and 28
Property, plant and infrastructure at 30 June 2019 includes land, buildings and infrastructure assets including roads, bridges and stormwater measured at fair values totalling $250.16m. The fair values of land and buildings are derived from observable market information while the fair values of infrastructure assets are based on current replacement cost. Council undertakes formal revaluations on a regular basis to ensure valuations represent fair value.
In 2018-19, Council indexed its buildings, roads, bridges and stormwater assets.
The calculation of depreciation requires estimation of asset useful lives, which involves a high degree of subjectivity. Changes in assumptions and depreciation policies can significantly impact the depreciation charged.
Capital payments in 2018–19 totalled $14.25m on a number of significant programs to upgrade and maintain assets. Capital projects can contain a combination of enhancement and maintenance activity which are not distinct and therefore the allocation of costs between capital and operating expenditure is inherently judgemental.
• Assessing the appropriateness of the valuation methodology and the key assumptions used.
• Evaluating indexation applied to assets between formal valuations.
• Testing the mathematical accuracy of the indexation calculations.
• Evaluating management’s assessment of asset useful lives.
• Performing substantive analytical procedures on depreciation expenses.
• Testing a selection of significant expenditure on maintenance and capital works to corroborate appropriate treatment.
• Testing a selection of capital work-in-progress to ensure that active projects will result in usable assets and that assets commissioned are transferred in a timely manner.
• Evaluating the adequacy of disclosures made in the financial report, including those regarding key assumptions used.
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Independent Auditor’s Report To the Councillors of Northern Midlands Council Report on the Audit of the Financial Report Opinion I have audited the financial report of Northern Midlands Council (Council), which comprises the statement of financial position as at 30 June 2019 and statements of comprehensive income, changes in equity and cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, other explanatory notes and the statement of certification by the General Manager. In my opinion the accompanying financial report:
(a) presents fairly, in all material respects, Council’s financial position as at 30 June 2019 and its financial performance and its cash flows for the year then ended
(b) is in accordance with the Local Government Act 1993 and Australian Accounting Standards. Basis for Opinion I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of Council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code. The Audit Act 2008 further promotes the independence of the Auditor-General. The Auditor-General is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant. My audit responsibility does not extend to the budget figures included in the financial report and the asset renewal funding ratio disclosed in note 27(b)(ii) to the financial report and accordingly, I express no opinion on them. Furthermore, I express no opinion on the General Manager’s determination that Council did not have any Significant Business Activities for inclusion in the financial report as required by Section 84(2)(da) of the Local Government Act 1993.
40 Northern Midlands Council | Annual Financial Report: 30 June 2019
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Responsibilities of the General Manager for the Financial Report The General Manager is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Local Government Act 1993 and for such internal control as determined necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the General Manager is responsible for assessing Council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Council is to be dissolved by an Act of Parliament or the Councillors intend to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Council’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the General Manager.
• Conclude on the appropriateness of the General Manager’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Council’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause Council to cease to continue as a going concern.
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• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
I communicate with the General Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. From the matters communicated with the General Manager, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Leigh Franklin Assistant Auditor-General, Financial Audit Services Delegate of the Auditor-General Tasmanian Audit Office 29 October 2019 Hobart
Northern Midlands Council | Annual Financial Report: 30 June 2019 41
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