Annual Report 2019-20

Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2020

Note 20. Borrowings (continued)
                                                                                                     2020            2019
                                                                                     Notes           $'000           $'000

Reconciliation of Loan Movements for the year

Loans - Queensland Treasury Corporation
Opening Balance at beginning of financial year                                                     24,232          36,141
Loan Interest Capitalised in period                                                                 1,234           3,382
Principal Repayments                                                                               (3,950)        (15,291)
Book value at end of financial year                                                               21,516          24,232
The QTC loan market value at the reporting date was $24,772,274 (2019: $27,668,386). This represents the
value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no
provision is required to be made in these accounts. No assets have been pledged as security by the council for
any liabilities.
Borrowings are all in $AUD and are underwritten by the Queensland State Government.

Note 21. Provisions
Annual Leave Provision
A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on
current wage and salary levels and includes related employee on-costs. Amounts not expected to be settled
within 12 months are calculated on projected futures wage and salary levels and related employee on-costs, and
are discounted to present values. This liability represents an accrued expense. As Council does not have an
unconditional right to defer this liability beyond 12 months annual leave is classified as a current liability.

Long Service Leave Provision
Long service leave liability is measured as the present value of the estimated future cash outflows to be made in
respect of services provided by employees up to the reporting date. The value of the liability is calculated using
current pay rates and projected future increases in those rates and includes related employee on-costs. The
estimates are adjusted for the probability of the employee remaining in the Council's employment or other
associated employment which would result in the Council being required to meet the liability. Adjustments are
then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value.
The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date are used
to discount the estimated future cash outflows to their present value.
Where employees have met the prerequisite length of service and Council does not have an unconditional right to
defer this liability beyond 12 months long service leave is classified as a current liability. Otherwise it is classified
as non-current.

Restoration Provisions
A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is probable the
Council will be liable, or required, to incur such a cost on the cessation of use of the facility. This liability is
provided in respect of Quarries and Landfill sites.
Council has the following restoration provisions:

Landfill Sites
The provision represents the present value of the anticipated future costs associated with the closure of the
Eumundi Rd landfill sites, decontamination and monitoring of historical residues and leaching on the site.
The calculation of this provision requires assumptions such as application of environmental legislation, site closure
dates, available technologies and engineering cost estimates. These uncertainties may result in future actual
expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the
most significant uncertainty in estimating the provision is the costs that will be incurred.

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