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Annual Report 2016-17
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2016/17
Annual Report
for the period 1 July 2016 to 30 June 2017
PO Box 141 Tewantin QLD 4565
P (07) 5329 6500
[email protected]
www.noosa.qld.gov.au
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Full text of sections 2 to 49 (of 83)
Section 2
Contents
Introduction 4
Our Council 4
A message from our Mayor 5
A message from our Chief Executive Officer 6
The Year in Review 7
Reportable Disclosures 16
Information relating to Councillors 16
Reportable Council resolutions for the period 17
Councillors’ expenses and resources provided 17
Summary of expenses/ reimbursements paid to Councillors for the period 18
Councillor meeting attendance 18
Complaints about Councillors 19
Overseas travel 20
Executive remuneration 20
Equal opportunity employment 20
Administrative action complaints 21
Council registers 21
Community grants 2016/17 22
Discretionary funds 27
Beneficial enterprises 27
Business activities 27
Significant business activity 27
Commercial business units 27
Competitive neutrality 27
Services, facilities and activities, for which special rates/ charges levied 27
Summary of concessions for rates and charges 28
Invitations to change tenders 30
Audit and Risk Committee 30
Internal Audit 30
Community Financial Report 2016/17 32
Background 32
Highlights and achievements 32
Where was the budget spent? 33
Statement of comprehensive income 33
Operating revenue – where the money came from 34
Operating expenditure – where the money goes 34
Statement of financial position 35
Assets - what we own 36
Liabilities – what we owe 36
Statement of changes in equity 36
Statement of cash flows 37
© Noosa Council 2017 Financial Ratios 38
Endorsed by Noosa Council 16 November 2017 Summary 39
Financial Statements 40
Page 2 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 3
Section 3
Introduction A message
from our
Of some significance was the new waste contract
that allowed us to not only improve our regular
services, but also roll out a green bin service to
urban areas. We also undertook an organisational
Mayor restructure that, amongst other benefits, allows for
a greater corporate emphasis on environmental
The 2016-17 financial issues. And thanks in part to State and LGAQ
year consolidated many funding, significant work has occurred on Council’s
of the priorities of the climate change adaptation plans.
current Council.
We have also beefed up our Economic
Of particular note was Development resources; undertaken a range of
the beginning of our community plans with input from residents and
journey towards zero emissions, with close analysis stakeholders; and provided over $810,000 in grants
of the organisation’s carbon footprint, and the to local community groups.
inclusion of a dedicated carbon reduction officer.
Already we have achieved a 6% reduction of our Looking back, I am amazed at the workload this
carbon emissions. The next couple of years will see Council has managed to squeeze into a very hectic
Our Council even greater improvements as we hurtle towards
our goal of being net zero emissions by 2026.
year. That we could achieve so much is entirely
thanks to our committed and passionate workforce.
It cannot be overstated just how dedicated our
Transport was another complex matter that Council staff are to making Noosa Council progressive and
bravely grappled with. Following considerable exemplary.
consultation with the community, including more
than 1250 submissions, plus numerous stakeholder I’d also like to take this opportunity to thank my
sessions and workshops, we came up with a fellow Councillors for their unswerving dedication
workable Transport Strategy. Many Council to the Noosa Shire community. I am extremely
decisions, including budget priorities and the blessed to be able to work with a group of
new planning scheme, are already being tested Councillors who are committed to ensuring that our
against the overarching intentions of this important working environment is amicable and constructive.
Strategy. Not all mayors, nor local governments, are as
fortunate as I am.
Speaking of the new planning scheme, drafting
of the document continues apace, with a range Thanks also must go to our highly-engaged
of specific studies informing the process now residents who give so much back to their
completed. A final community consultation process community. They ensure that Noosa Shire truly is
is scheduled to be undertaken in late 2018, after the best place on the planet in which to reside.
the first State interest review.
Meanwhile, our planners are having to deal with
an escalating volume of development applications.
Tony Wellington
Of the 477 planning applications decided on last
year, Council approved all but 6. Of those that were
refused, four were for removal of healthy trees, one
was for a change of existing approval conditions,
and only one was a town planning development
application.
Financial stability remains an important hallmark
of Noosa Council, with revenues exceeding costs,
debt levels reducing and Council again investing
significantly in the replacement of key community
infrastructure.
From left to right: Cr Frank Pardon, Cr Joe Jursevic, Cr Brian Stockwell, Mayor Tony Wellington,
Cr Ingrid Jackson, Cr Jess Glasgow, and Cr Frank Wilkie (Deputy Mayor).
Page 4 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 5
Section 4
A message
from our
I would like to thank Mayor Tony Wellington
and our Councillors for their wise leadership
throughout 2016/17. Working well together as
The Year in Review
a team has provided a unified voice and unified
Chief direction which is important for successful This section of the Annual Report looks at
Council’s progress in achieving the goals set out
Throughout the year, the CEO provided Council
with quarterly reports looking at progress of the
Councils. I would also like to publically thank all of
Executive our Council staff. Once again, you have excelled. in its Corporate Plan. Noosa Council adopted Operational Plan and details of Key Performance
a new Corporate Plan in January 2017. The Indicators. The CEO also provided a separate
Officer Every day, we have staff:
Corporate Plan identifies five themes, a series report at the end of the financial year to Council
• putting out swimming pool lane ropes at of long term goals and key focus areas for 2017- on the progress towards achieving the Corporate
An annual report is 5.30am for the 245,000 patrons who use the 2022. Council’s progress towards achieving them Plan outcomes. Both the quarterly and annual
an important way Noosa Aquatic Centre annually; are set out on the following pages. reports to Council are made available to the public
for our Council to • helping people at the library by issuing over via Council’s website
stay accountable to Council’s Operational Plan 2016/17 detailed
570,000 books in the 2016/17 year
the Noosa community for our performance. In the major priorities and initiatives that Council
reflecting on the 2016/17 year, I am once again • fixing roads, maintaining parks and having the undertook to work towards the implementation of
street sweeper clean over 11,000 km of roads; the Corporate Plan.
very proud of how our Council has been able to
achieve great results for our community despite • managing waste removal including picking up
being only 3 ½ years old. more than 3,000,000 bins during the year;
• helping residents with their queries by
One of the key highlights for 2016/17, was the
answering over 65,000 front line calls;
adoption of Council’s new Corporate Plan (for
local governments, a Corporate Plan is the and the list goes on……..
equivalent of a business plan in the private
sector). Our Council has focused on a 20 year Our community is lucky to have such dedicated
planning horizon in our Corporate Plan. This staff who love to work in Noosa. As I often say
demonstrates one of the important characteristics to our staff, working for our Council is one of the
of Noosa Shire Council – understanding that long- few jobs I know where you can drive home at the
term planning is important for a community rather end of the work day and see where you made a
than just short-term decision-making. difference to the place you live. This sense of
connection between our work role and where we
Our Corporate Plan is crafted around a new vision live reminds me of a wonderful quote that I read
– “Noosa Shire – different by nature”. Although a recently about the nature of a community - “A true
short vision statement, there is a lot of depth and community is not just about being geographically
meaning in the vision which will set the tone for close to someone or part of the same social
our future planning and thinking. Our Corporate network. It’s about feeling connected and
Plan also sets out our longer term aspirations for responsible for what happens” - Yehuda Berg.
the Noosa Shire through a series of 20 year goals
across five themes. These themes are:
Theme 1: The Noosa Environment Brett de Chastel
Theme 2: The Noosa Community
Theme 3: The Noosa Economy
Theme 4: Long term planning for Noosa Shire
Theme 5: Excellence as a Council
This is the first Annual Report where we will
report to our community on our progress towards
achieving outcomes in each of these five themes.
By any measure, our Council had a great year.
You will see set out in this report a list of
achievements for 2016/17 under each theme. We
are proud of our achievements to date.
However, we also recognise that we cannot
rest on our laurels. Our community expects
great things from its Council and rightly so. Our
community doesn’t want just a good Council, it
wants a Council that it can be proud of.
Page 6 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 7
Section 5
Corporate Plan Theme 1: The Noosa Environment
“Our environment is protected, enhanced and valued by the community”
• Council committed to a three-year agreement to • Stage 2 of the Munna Point foreshore
remain part of the Healthy Waterways Program. revitalisation project has been implemented
with the aim of reducing environmental damage
• Council reviewed its management approach to Munna Point from erosion.
to the Noosa River and has committed to
refresh and rewrite the Noosa River Plan with • In December 2016, Council adopted the
an expanded focus on river catchment areas. Noosa Biodiversity Assessment Report.
The revised Noosa River Plan is currently being This report is an important input into our
drafted. Council’s new Planning Scheme and also
acts as a benchmark for future assessment of
• Council adopted the Noosa Shire Koala biodiversity across the Shire. The report will
Conservation Plan in July 2016. Actions to also be useful as part of the 10 year renewal
implement the Plan are now being progressed. application for the Noosa Biosphere Reserve.
• Council undertook an audit of waste water • Council awarded a new waste management
facilities in Cooran. Cooran is not serviced by a contract to Cleanaway for the period 2017 -
sewerage system and accordingly, residential 2024 at an approximate cost of $46 million.
properties use on site waste water facilities and This contract covers the collection, disposal
an audit was undertaken to determine the level and recycling operations for the Eumundi
of compliance from an environmental protection Road Waste Recovery Centre and includes
and health perspective. the introduction of a green waste recycling bin
which will reduce green waste being buried in
• Council adopted the Noosa Parklands Park
the landfill, thus significantly reducing methane
Management Plan following significant
gas.
consultation with local residents. Staff are
currently working to develop a suite of other • Council was successful in receiving a
management plans for other bushland reserve grant (managed by the Local Government
areas within the Shire. Those plans are • Council has addressed a range of significant
Association of Queensland) for the planning and environment applications during
substantially complete. development of a Coastal Hazard Adaption the last 12 months. Council approved 98.7% of
Plan. A Project Officer has been appointed and planning applications.
• Council made a submission to the State
work is currently underway to develop both a
government on the green paper on Fisheries • Council had considerable success in the
Coastal Hazard Adaption Plan (year one) and a Planning and Environment Court with a
Management Reform. Council has also made a
Climate Change Adaption Plan (year two). significant victory for our Planning Scheme
number of direct representations to the Minister
• The Waste Reduction and Recycling Plan in the Noosa Civic case. The court supported
• Council entered into a Memorandum of has been rolled out in 2016/17. This included
• Council has adopted its Zero Emissions Council’s position that it was inappropriate
Understanding with Healthy Waterways and significant media coverage and school under the Planning Scheme to expand retail
Strategy focused on eliminating our
Catchments for the ongoing “Land for Wildlife” education sessions. operations on that site. During 2016/17, the
organisation’s emissions by 2026. This was a
program. This program helps support property • Council has entered into a contract for the appellant in the poultry farm case also withdrew
major initiative of Mayor Wellington and work
owners who care for their land to encourage purchase of Johns Landing (approximately their appeal as did the appellant in the Service
has been undertaken in 2016/17 to establish
environmental protections. 50 ha) in order to undertake the long-term Station Centre appeal at the Good Shepherd
the baseline level of emissions (which have
protection of important environmental land on Lutheran School site on Eumundi Road.
been recently re-calculated). A major report • Council undertook an environmental clean-up the Noosa River. Council is also working with • In an environmental first, Council has trialled a
has been finalised on the energy use of 9 of of asbestos which was dumped illegally on the current owner of the property to assist with range of new environmentally friendly asphalt
Council’s largest energy producing sites to Walter Hay Drive. the transition to alternative housing for those
identify which energy efficiency projects should processes in conjunction with our contractor.
residents living on the current site. This has included the introduction of recycled
be undertaken in the first instance to both • A systematic inspection of our industrial
reduce costs and emissions. areas has been undertaken to identify any • Council has facilitated the approval processes printer cartridges into the asphalt mix and the
for a project being funded by the Noosa use of different temperatures to undertake the
issues with run-off etc to local waterways.
• Council adopted a new street sweeping Biosphere Reserve Foundation to re-establish planning process. We have also trialled different
The detailed report has identified some key oyster reefs in the Noosa River. This has combinations of recyclable material including
contract which has resulted in an increased areas for improvement and the Council will be entailed obtaining both town planning approval shredded car tyres and recycled glass.
length of roads being serviced by the street considering the option of introducing a licencing from Council and environmental approvals from
sweeper. This reduces the amount of rubbish regime under our local laws. the State government. In addition, Council also
going into drains and waterways. provided $250,000 to the Noosa Biosphere
Reserve Foundation for projects that advance
the purpose of the Noosa Biosphere Reserve.
Page 8 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 9
Section 6
Corporate Plan Theme 2: The Noosa Community
“Our community is connected, safe and happy and able to meet their potential”
• Council adopted a three-year implementation • Council undertook extensive community • Council undertook a sports field audit to provide • Council undertook numerous Library and
plan for the Noosa Social Strategy. This engagement with the Cooroy community additional assistance to sporting clubs who Gallery programs to support our community.
includes an annual update to Council on regarding the future of the Cooroy Community have the responsibility of maintaining their Our Library Services have physically issued
progress for implementation of the Noosa Hall. Council agreed to accept trusteeship of sporting fields. Council agreed to provide over 570,000 items to our community during
Social Strategy. Included within the Strategy the Deed of Grant in Trust and supported the membership to the Sports Turf Association of the last year.
is the establishment of the Noosa Community establishment of the Cooroy Community Hall Queensland to 12 sporting clubs to assist in
Round Table which has been successfully Association Inc. A lease has been provided to increasing expertise within the clubs on field • After considerable work with the local
operating to assist with the transition process at the Association in order that they can manage and turf maintenance. community including United Synergies and
Johns Landing. the Hall. Council has also agreed to fund 50% local Rotary Clubs, Tait Duke Cottage was
of the restoration costs (capped) with the • Council has commenced a process to review restored and open for community use in June
• Staff have been working to develop a Sport community funding the remaining 50%. This options for the future use of the Noosaville 2017. This milestone was significant after many
and Active Recreation Plan. This has included has been an excellent outcome for the Cooroy foreshore. This included an extensive years of work to identify an appropriate site and
initial community engagement and a draft Plan community. community engagement process which will be working in partnership with the local community
has been developed in preparation for a formal completed in 2017. to restore the building and make it available for
round of community consultation. • Council extended the lifeguard services ongoing community use.
agreement for a five-year term. This agreement • Council has reviewed and updated its
• Council has entered into a three-year enables our community and visitors to safely Community Engagement Policy. Significant • To encourage community interaction, Council
agreement with the Cooroy Futures Group Inc use our beaches with a high level of safety community engagement projects in 2016/17 has installed chalkboard walls as part of the
for the operation of the Cooroy Butter Factory based on our lifeguard services. included: Cooroy Memorial Hall, Sunshine International “Before I Die” wall movement. This
Arts Centre. This agreement was entered into Beach Skate Park, Digital Hub - Peregian has been successful (particularly at Cooroy)
after a trial management period following an • Council introduced a community support Beach, Noosa Botanic Gardens Masterplan, with one of the walls also visiting Noosa
extensive community engagement process on scheme for those residents living in the vicinity Noosa Planning Scheme, Noosa Transport Junction and Peregian Beach.
the future of the Cooroy Butter Factory. of Wallace Park who were directly affected Strategy, Waste Reduction and Recycling Plan,
by large numbers of flying foxes that came Corporate Plan • Council continued to provide its community
• Council has undertaken two community Council to Wallace Park on an intermittent basis. The grant program supporting our community
meetings during 2016/17. In October 2016, we scheme included the provision of cleaning • Council accepted a contract for the restoration groups. During 2016/17, we provided over
held a Council meeting at Cooroy and in April materials, car covers and other tangible and upgrade of the Sunshine Beach Skatepark $810,000 in grants to local community groups
2017, a meeting at Boreen Point. support materials to reduce the impact on local at a cost of $380,000. This is an important to support projects, acquisition of equipment or
residents. Council also employed a project facility for the younger demographic in our events.
• Council commenced the development of a Shire.
officer for a period during 2016/17 to help roll
Noosa Arts, Culture and Heritage Plan. A • Council staff also facilitated a number of
out the support items.
Consultative Committee has been established evening information sessions for community
and work is well advanced on the development organisations to help improve their governance
of that Plan. and grant writing skills.
Page 10 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 11
Section 7
Corporate Plan Theme 3: The Noosa Economy Corporate Plan Theme 4: Long term planning for Noosa Shire
“Our economy is diverse and resilient” “Noosa Shire is well managed and sustainable”
• The design of the Peregian Beach Digital • Council continued to work closely with Regional • Council undertook significant work on the • Council adopted its new Corporate Plan which
Hub was completed and town planning Development Australia (Sunshine Coast) on development of the new Planning Scheme will guide key corporate decision making for
approval obtained. Council was successful in a range of projects including a successful during 2016/17. Council adopted the New Noosa the next 20 years. The Corporate Plan was
obtaining $1 million of funding from the State entrepreneurship program. Plan Discussion Paper for the purposes of developed following a series of Councillor
Government. Associated road works and public consultation and undertook an extensive workshops analysing future trends and
parking in Rufous Street have substantially • Council undertook an audit of footpath trading community engagement process to seek developed a new vision – “Noosa Shire -
been completed and preparatory works have across the shire and also provided information feedback. Council also finalised a range of different by nature”.
commenced on the Digital Hub building. to the operators while the audit was being studies to support the development of the new
Tenders have been called for the management undertaken. Planning Scheme including: Resources and • Council adopted a Transport Policy and
of the Digital Hub component of the building. Minerals Planning Study, Study into Agriculture Transport Strategy following extensive
• Council worked with the private sector to assist community consultation. This was one of the
and Agricultural Land in Noosa Shire, On-Site
• Council appointed an Economic Development with the establishment of Innovate Noosa. This signature long-term pieces of planning for our
Effluent Disposal Noosa Shire Study, Housing
Manager who has brought significant is part of a regional program that attracted community undertaken in 2016/17. There were
Needs Assessment
experience and focus to our economic significant funding from Advance Queensland two rounds of community consultation including
development programs. to develop innovation on the Sunshine Coast. • Council was able to provide significant input into targeted consultation with key stakeholders.
the ongoing development of the draft South-East One of the challenges for 2017/18 is the
• Council undertook a detailed review of the • Council continues to manage our Holiday Parks
Queensland Regional Plan which will achieve a implementation of that Strategy. Also during
proposal from CCIQ Noosa for a Noosa including awarding a new three-year contract
good outcome for the Noosa community. 2016/17, Council successfully delivered its
Convention and Cultural Centre. Council for the management of the Noosa River Holiday
Christmas and Easter free holiday bus program.
recognised that such a proposal could have Park. During 2016/17, Council also commenced • Council undertook a significant review of our
potential economic benefit but identified that a process to redevelop the Noosa North infrastructure plans to enable us to meet new • Council adopted an Asset Management
the cost of construction and operation should Shore Beachfront Campground including the legislative requirements for the imposition of Roadmap in 2016/17. The roadmap sets out
not be borne by Noosa ratepayers but rather, development of concept designs and sorting contributions from developers towards the cost the priorities for developing more robust long-
Council expressed a willingness to consider out tenure issues. of infrastructure. term asset management plans and ensuring
financial options driven by the market. that asset management becomes more central
• Council undertook its three yearly review of • Council has adopted the Noosa Local Disaster to our decision making processes. Converting
• Council undertook its first Economic commercial high use permits and following a Management Plan which guides our responses this roadmap into action is also one of the
Development Grants Program providing tender process, awarded new permits for the to natural disasters. Council has also undertaken challenges for 2017/18.
financial support for programs that will support operation of commercial activities on Council considerable work in developing our response to
the outcomes of the Local Economic Plan. controlled land in the Hastings Street precinct. natural disasters including undertaking disaster
management exercises to train our staff.
• Council entered into a Memorandum of This was put to the test with the arrival of the
Understanding with the Small Business remnants of Cyclone Debbie in February 2017.
Solutions section of TAFE Queensland to Our management of that response was good
provide support for training and development of and our Local Disaster Management Plan was
local small businesses. able to deal with that scenario. Council was also
successful in obtaining State funding to install
• Council continued to work closely with Tourism
new flood alert stations at a cost of $206,000.
Noosa to develop the Noosa Tourism market.
In particular, Council provided significant input
into the development of the Noosa Tourism
Strategy 2017 - 2022 adopted by the Tourism
Noosa Board. This strategy included a focus
on “value over volume” in relation to tourism so
that the focus is on yield per visitor rather than
simply more visitor numbers.
Page 12 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 13
Section 8
Corporate Plan Theme 5: Excellence as a Council
“The Noosa Shire community is proud of its Council”
• We have had another successful financial year. • Council has recently undertaken its first external
Revenues were above budget, expenses were customer satisfaction survey. The survey was
below budget, debt levels are lower than at undertaken by Market Facts Qld Pty Ltd to
the beginning of the financial year and cash enable us to benchmark with other Queensland
reserves are higher than at the beginning of the local governments (LGAQ also use this firm to
financial year. At the end of 2016/17, Council undertake state wide customer service surveys).
adopted its budget for the 2017/18 financial year Our benchmark scores were above state
with a 2% general rate increase. averages in almost every category.
• Council has successfully achieved another • Council continued to undertake a series of
unmodified audit from the Queensland Audit service reviews looking in detail at operations
Office (QAO) with the 2015/16 financial to find ways in which we can be more efficient
statements being “signed off” by the QAO. in delivering services. This included areas such
as the Noosa Leisure Centre, Environmental
• Behind the scenes, the Audit and Risk
Health, and Building and Plumbing Services.
Committee has continued to add value to our
Following these reviews, Council adopted
compliance and performance for governance
additional staff resources in some parts of the
and finance. This has included an oversight of
organisation to ensure that appropriate service
our strategic risks, review of key governance
levels can be delivered.
and financial policies, review of organisational
KPI’s, development of Business Continuity • The transformation of our Workplace Health and
Planning etc. Our two external members of the Safety performance has continued. Significant
Audit and Risk Committee in particular have progress has been made in relation to our
added significantly to our overall governance documentation, processes and practices for
practices. Although not high profile, this Workplace Health and Safety. Based on the
Committee plays an important role in making Local Government Workcare Performance
sure that Council “dots the i’s and crosses the statistics for category D Councils, we have
t’s” both in governance and in the management transitioned from one of the worst performing
of risk. Council’s Internal Audit Program included local governments of our size to one of the best
internal audits on Procurement and Council performing local governments of our size for
investments. Lost Time Frequency and Lost Time Injury.
• Council commenced a review of our • A Digital Strategy has been developed for
organisational structure at the end of 2016 with management to focus on opportunities
the new structure being adopted in March 2017. available with emerging digital technology.
Following considerable internal consultation, This strategy focuses particularly on improving
the Planning and Infrastructure Department our organisational efficiency using digital
was split in two with a new Environment and technology as well as improving our interface
Sustainable Development Department and a to our community. During the year, more mobile
new Infrastructure Services Department being technology was rolled out to our external
created. Also during 2016/17, Council added workforce.
additional staff resources to our Infrastructure
• We commenced negotiations for a Noosa
Design and Delivery Branch and Asset
Council Certified Agreement. These negotiations
Management Branch to enable them to deliver
with unions will continue into the 2017/18
expected outcomes.
financial year.
• Our enterprise risk management has been
• We transitioned our ICT systems to the latest
further developed with risk management
version of the Cloud which provided enhanced
practices being further embedded into Council
security and stability for our systems which is
operations. Council was recognised by Local
important given the number of cyber-attacks
Government Mutual for our risk management
occurring at the moment. We have also
practices. Our comprehensive Business
continued to roll out our ICT strategy to enhance
Continuity Plans are all but complete and will be
our system capabilities.
tested in early 2017/18.
• We undertook significant training and
• Our Noosa Aquatic Centre, Noosa Leisure
development for leadership capabilities within
Centre and The J all had outstanding years.
the organisation. This included the continuation
The Noosa Leisure Centre had its highest ever
of the Leadership Practices Inventory (LPI)
annual attendance, The J had its highest ever
program for our senior management staff
revenue and the Noosa Aquatic Centre had its
(approx 30 staff leaders).
strongest ever financial performance.
Page 14 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 15
Section 9
Reportable Disclosures Reportable Council resolutions for the period
The table below outlines the reportable resolutions under the Local Government Regulation for the period.
Information relating to Councillors
Table 2 - Reportable Resolutions
Remuneration The LG Act does however allow a local government Local Government Resolution Adopted
to take part in a superannuation scheme for its Regulation 2012
Councillor remuneration is set by the independent Councillors and Council on 20 January 2014
Local Government Remuneration and Discipline authorised the payment of superannuation Section 250 (1) Nil.
Tribunal established under the Local Government contributions for Councillors of up to 12% of their
Act 2009 (LG Act). The Tribunal determines annual salary on the condition that Councillors: Section 250 (2) Councillors Expense Reimbursement Policy Update
remuneration for Mayors, Deputy Mayors and
Councillors and releases a report in December each • contribute an amount of up to 6% from their Council note the report by the Governance Advisor to the Services &
salaries and Council contributes a proportionate Organisation Committee Meeting dated 9 August 2016 and adopt the
year which establishes single remuneration levels
amount of up to 12% to a nominated updated Councillors’ Expenses and Reimbursement Policy.
for the following year. superannuation fund;
(Adopted by Council 18 August 2016).
The Local Government Remuneration and Discipline • make contributions through an arrangement by
Tribunal Report 2015 listed Noosa Council as a way of a formal request to Council, and Section 206 (2) Non-Current Asset Accounting Policy
Category 3 Council, and prescribed that the annual • nominate the preferred superannuation fund, Council note the report by the Financial Accountant to the Services &
rate of remuneration for the Mayor and Councillors and where no nomination has occurred, the Organisation Committee Meeting dated 6 June 2017 and:
for the period 1 July 2016 to 30 June 2017 (the superannuation payments be made to LG A. Adopt the updated Non-Current Asset Accounting Policy; and
period) as follows: Super. B. Note that for asset accounting purposes; this Policy is to be applied
• Mayor - $122,631 An overview of the remuneration paid to Councillors from 1 July 2016.
for the period is provided in Table 1.
• Deputy Mayor - $76,644 (Adopted by Council 15 June 2017)
• Councillors - $65,147
In accordance with s244 (3) of the Local
Government Regulation 2012 (LG Regulation), the
remuneration prescribed by the Tribunal cannot
include:
Councillors’ expenses and resources provided
• any amount for expenses to be paid or facilities The Councillors’ Expenses Reimbursement Policy The categories of expenses and eligibility for
to be provided to a Councillor of a local ensures Councillors are provided a reasonable reimbursement as per the Policy for the Period
government under its expenses reimbursement level of resources and equipment in order to carry include:
policy, or out their duties in an effective and efficient manner.
• any contribution a local government makes Minor amendments to the Policy were made at • mandatory professional development
for a Councillor to a voluntary superannuation Council meeting of 18 August 2016. • professional development & representation
scheme for Councillors established or taken part (Mandatory and Discretionary)
in by the local government under s226 of the LG The Policy is compliant with the following principles
Act. prescribed by the LG Act: • travel as required to represent Council
• meals when travelling for Council business
Table 1 - Councillor Remuneration • transparent and effective processes and
decision-making in the public interest, • accommodation
Councillor remuneration for period 1 July 2016 to 30 June 2017 • good governance of, and by, the local • private vehicle usage
government; and • hospitality
Councillor Salary Superannuation* Total
($) ($) ($) • ethical and legal behaviour of Councillors and • administration tools and access to Council office
local government employees. amenities
Cr Tony Wellington (Mayor) 122, 631 14,716 137,347
Cr Frank Wilkie (Deputy Mayor) 76,644 9,197 85,841 • safety equipment
Cr Joe Jurisevic 65,147 7.818 72,965 • Council vehicle usage
Cr Frank Pardon 65,147 7.818 72,965 • home office and telecommunication needs
Cr Jess Glasgow 65,147 7.818 72,965 • insurance cover1
Cr Ingrid Jackson 65,147 7.818 72,965
Cr Brian Stockwell 65,147 7,053 72,200
Note amounts rounded to the nearest whole dollar value
1 Councillors are covered under relevant Council insurance policies while on Council business. Cover
*Superannuation shown is Council’s 12% employer contribution, with the exception of Cr Stockwell who elected the includes public liability, professional indemnity, Councillors’ liability, personal accident and overseas travel.
national standard 9.5% contribution for a portion of the period
Page 16 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 17
Section 10
Summary of expenses/ reimbursements paid to Complaints about Councillors
Councillors for the period Sections 176 to 182 (inclusive) of the LG Act The Policy establishes:
The reimbursements that were made to Councillors For the period all claimed expenses were processed prescribe the requirements for local governments
for dealing with complaints about the conduct and • the responsibilities of Councillors under the Act;
for the period were for mandatory and discretionary and fell within the required limits prescribed by the
professional development, hospitality, vehicle use, Policy. performance of Councillors so as to ensure that: • the standards of behaviour and ethical
home office and telecommunication, and travel obligations expected Councillors in Noosa Shire;
A summary of expenses/ reimbursements to • appropriate standards of conduct and and
expenses incurred whilst on Council business. performance are maintained, and
Councillors for the period is outlined in table 3 • a clear administrative method for handling and
below. • a Councillor who engages in misconduct or resolving complaints made about the conduct
Table 3 - Councillor Expenses 2016/17 inappropriate conduct is disciplined. and performance of Councillors in accordance
The Councillor Code of Conduct Policy endorsed by with Division 6 of the LG Act.
Councillor Mandatory Discretionary Use of Home Hospitality Travel Total
Professional Professional private office & ($) expenses ($) Council on 13 January 2014 remained unchanged Table 5 identifies the reportable complaints, orders
Development Development vehicle telecomms as requied for the period. and recommendations against Councillors for the
($) ($) (option 1) ($) to represent period.
($)* Council
($)
Cr Tony Wellington 665 155 5,000 2,880 0 24 8,724 Table 5 - Complaints against Councillors
Cr Jess Glasgow 78 146 5,000 2,880 0 0 8,104 Reportable information relating to complaints against Councillors Number of
Cr Ingrid Jackson 78 30 5,000 2,880 66 0 8,054 complaints
(for the period)
Cr Joe Jurisevic 0 1,030 5,000 2,880 0 0 8,910
Cr Frank Pardon 0 30 5,000 2,880 0 0 7,910 (i) The number of orders and recommendations made under s180 (2) or (4) of the LG Act Nil
Cr Brian Stockwell 0 1,500 5,000 2,880 0 64 9,444
(ii) The number of orders made under s181 of the LG Act. Nil
Cr Frank Wilkie 582 750 5,000 2,880 0 0 9,212
Note amounts rounded to the nearest whole dollar value The number of complaints made about the conduct or performance of a Councillor for
(iii) Nil
*Under Council’s Policy, Councillors may elect one or two options regarding the use of private vehicle reimbursement. which no further action was taken under s 176C(2) of the LG Act.
Option 1 - Councillors accept an annual payment of $5,000 as reimbursement for the use of their private vehicle on The number of complaints referred by the Council CEO to the department’s chief
Council business. (iv) Nil
executive under s176C (3)(a)(i) of the LG Act.
The number of complaints referred to the Mayor under s176C (3)(a)(ii) or (b)(i) of the
(v) Nil
LG Act.
The number of complaints referred to the department’s chief executive under s 176C
Nil
Councillor meeting attendance (vi)
(4)(a) of the LG Act.
The number of complaints assessed by the Council CEO as being about corrupt
The attendance of Councillors at Ordinary meetings, Special meetings and Committees for the period is (vii) Nil
conduct under the Crime and Corruption Act.
outlined in table 4 below.
(viii) The number of complaints heard by a regional conduct review panel. Nil
Table 4 - Council Meeting Attendance 2016/17
Councillor Ordinary General Planning & Services & Special & Audit & Risk Total (ix) The number of complaints heard by the tribunal. Nil
Meeting Committee Environment Organisation Budgetary Committee
Committee Committee (x) The number of complaints to which s176C (6) of the LG Act applied. Nil
Cr Tony Wellington 11 12 11 11 2 4 51
Cr Jess Glasgow 11 10 n/a 10 1 n/a 32
Cr Ingrid Jackson 12 11 10 n/a 1 4 38
Cr Joe Jurisevic 12 11 11 n/a 2 n/a 36
Cr Frank Pardon 10 11 n/a 9 2 n/a 32
Cr Brian Stockwell 12 12 11 n/a 2 n/a 37
Cr Frank Wilkie 11 11 n/a 10 2 n/a 34
Note: n/a in the table above indicates that the relevant Councillor is not a representative of the particular Committee.
Page 18 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 19
Section 11
Overseas travel Equal opportunity Administrative action complaints
No official overseas travel was undertaken by employment Council is committed to managing customer • all staff members are aware of their
Councillors or staff during the period. responsibilities regarding the complaints; and
Council is an equal opportunity employer, which feedback and ensuring all complaints are dealt with
is committed to providing equal employment in a fair, prompt and confidential manner. Council • complaints are used to identify problems and to
opportunities for its current and prospective aspires to provide a level of service that does not continuously improve the Council’s services.
employees. Council’s employment practices are attract complaints. However, Council acknowledges
Executive remuneration aligned to Queensland’s Anti-Discrimination Act the public’s right to provide feedback on services, A copy of the Council’s current Administrative
Action Complaint Process Policy can be viewed on
1991 and relevant federal anti-discrimination laws. including the right to lodge a complaint about a
Under the LG Act, the annual report of a local decision or other action Council has taken, or failed Council’s website.
government must state the total remuneration Council recognises the importance workforce to take, where considered appropriate to do so. Table 7 below provides a summary of Administrative
packages that were payable during the reporting diversity and promotes a working environment Action Complaints for the period. Council reviews
period to its senior management, and the number where people are treated on their merits at every Council’s Administrative Action Complaints Policy
has been developed to ensure: each complaint it receives objectively and aims
of employees in senior management who are being stage of their employment. to ensure that any improvement opportunities
paid each of the total remuneration packages. • complaints are handled in a structured, identified by a particular complaint are implemented
At Noosa Council, all staff are encouraged to
timely and professional manner which is fair, into operations.
The senior management of a local government embrace equity and diversity at all levels within the
considerate and respectful of privacy;
consists of the chief executive officer and all senior organisation. The Noosa Council Employee Code
executive employees of the local government. A of Conduct reinforces the standards of behaviours
senior executive employee is an employee who required of employees including non-discriminatory
workplace practices. Table 7 - Administrative Action Complaints
reports directly to the chief executive officer and
whose position would ordinarily be considered to be Complaint statistics 30 June 2016 to 30 June 2017
a senior position in the corporate structure. Council will continue to strive to build a workforce
and supporting organisational culture that reflects Complaints Complaints Complaints Complaints
The total of remuneration packages payable the diversity of the greater community and is free of outstanding received during resolved outstanding
to senior management during the period was all forms of discrimination and harassment as at 30/06/16 the period during the period as at 30/06/17
$1,077,410.
0 23 17 6
The annual package bands for Council’s senior
management team are outlined in table 6 below. Note: The above statistics relate to formal administrative action complaints, which can be distinguished from ‘a
request for service’ by members of the public. An administrative action may include a decision, or a failure to make
a decision, a failure to provide a written statement of reasons for a decision, an act, a failure to do an act, the
Table 6 - Executive Remuneration formulation of a proposal or intention, or the making of a recommendation.
Package Band Number of senior
management
employees
$100,000 - $200,000 3
$200,001 - $300,000 2 Council registers
Council is required under the LG Regulation to develop and maintain certain registers. A number of these
registers are available for public inspection at Council’s Tewantin Office or can be viewed on Council’s
website.
Below is a list of the registers kept by Council:
• Asset Register • Other Development Fees and Charges
• Delegations Register • Local Laws Register
• Complaints Register • Roads Register
• Claims Register • Instrument of Appointments
• General Cost Fees and Commercial Charges • Noosa Policy Register
• Engineering and Environment Fees and • Gifts and Benefits Register
Charges
• Contracts Register
• Planning and Development Fees and Charges
• Registers of Interests
• Building and Plumbing Fees and Charges
Page 20 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 21
Section 12
Community grants 2016/17 Community Grant Recipients Type Funding
Amounts
Council’s Community Grants for the period were managed in accordance with Council’s Community Grants ($)
Policy as endorsed by Council on December 2016. This Policy is to be read in conjunction with any Three Year Alliance Agreement - Emergency Services
supporting guidelines for specific funding programs. This Policy does not apply to sponsorship, donations,
advertising, naming rights and service level agreements. Australian Volunteer Coast Guard Association Noosa QF5 - operational funding Public Safety 10,500
The outcomes of this policy include: LifeFlight Australia - operational funding Public Safety 10,500
• Providing community organisations and • Providing opportunities for community
individuals (for Regional Arts Development organisations to deliver on Council’s strategic - : 21,000
Funds only) with financial support to meet goals and identified key initiatives (e.g. Noosa
identified community needs; Corporate Plan, Noosa Social Strategy, Local Water Rebates
Economic Plan and Environmental outcomes).
• Building community skills and resilience;
Table 8 outlines the funds supplied by Council Paid directly to 18 eligible not-for-profit organisations Various 24,298
• Developing and maintaining sustainable
community infrastructure; through community grants for the period.
Paid on behalf of 44 eligible not-for-profit organisations Various 55,221
• Providing opportunities for community
organisations to leverage Council’s financial - : 79,519
assistance to obtain funding from other sources;
and Three Year Halls and Centres Maintenance and Management
Community
Table 8 - Community Grants 2016/17 Ridgewood Community Hall Assn Inc. - management and maintenance 4,280
Development
Community Grant Recipients Type Funding Pomona & District Community House & Lawson Shed Inc. - management and Community
Amounts 17,052
maintenance Development
($) Community
Federal Memorial Hall and Community Centre Inc. - management and maintenance 4,912
Regional Arts Development Fund Development
Community
Noosa Shire Arts and Crafts Assn Inc. auspicing Wallace House Quilters - Mixing Tinbeerwah Hall Inc. - management and maintenance 3,036
Crafts 1,570 Development
Modern Wedge Quilt Elements
Community
Noosa Arts Theatre Inc. - 'Still' performed at Noosa Arts Theatre and at Cooran Peregian Beach Community House Inc. - management and maintenance 9,115
Theatre 10,000 Development
Memorial Hall.
Community
Cooran Memorial School of Arts Inc. - management and maintenance 7,179
- : 11,570 Development
Community
Three Year Alliance Agreement Pomona Memorial School of Art Hall Inc. - management and maintenance 12,197
Development
Community
Noosa District Community FM Radio Assn Inc. - operational funding Arts and Culture 7,500 Kin Kin Community Group Inc. - management and maintenance 5,956
Development
Flying Fox Rescue Release Noosa Inc. - operational funding Environment 7,500 - : 63,727
Sunshine Butterflies - operational funding Human Services 7,500 Community Project Grants Round 5 & 6
Cooroora Historical Society Inc. t/as Noosa Museum - operational funding Arts and Culture 5,000 Sunshine Butterflies - Irrigation infrastructure Human Services 4,950
Community
Noosa & District Landcare Group Inc. - operational funding Environment 15,500 Tewantin Noosa Lions Club Inc. - Storage den concrete apron 7,500
Development
Noosa Arts Theatre Inc. - operational funding Arts and Culture 7,500 Mary River Catchment Coordinating Committee - Find a Frog in February (Noosa Shire
Environment 2,360
component)
Cooroy-Noosa Genealogical and Historical Research Group Inc. - operational funding Recreation 5,000 Community
Noosa Christian Outreach Centre - Safety and health workshops for vulnerable 8,215
Development
Cooroy Family Support Centre / SunnyKids Inc. - operational funding Human Services 5,000
Borrow and Bring Back Inc. - Sewing machines for making boomerang bags Environment 2,000
Noosa Integrated Catchment Association Inc. - operational funding Environment 15,500
Community
Rotary Club of Noosa Heads Qld Inc. - Two heavy duty marquees 1,703
Development
The Salvation Army / Shine Program - operational funding Human Services 15,000
Community
Pomona & District Community House & Lawson Shed - Parenting workshops 1,200
Country Noosa Inc. - operational funding Environment 3,000 Development
Noosa Yacht and Rowing Club under the auspices of the Australian Sports Foundation
Noosa Community Biosphere Association Inc. - operational funding Environment 10,500 Human Services 2,500
- 'Sailability Noosa' - sailing for the disadvantaged
Sport & Active
- : 104,500 Noosa District Rugby Union Club - Sports field lighting upgrade 15,000
Recreation
Page 22 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 23
Section 13
Community Grant Recipients Type Funding Community Grant Recipients Type Funding
Amounts Amounts
($) ($)
Noosa District Junior Rugby League Football Club - Violence and abuse preventative Sport & Active Kin Kin Community Group Inc. - Rejuvenate Kin Kin Arboretum - including identify and
995 Environment 5,481
workshops for young men Recreation label species
Suncoast Community Legal Service Inc. - 'Piano Forte' - a community legal education Sport & Active
Arts and Culture 5,222 Noosa District Netball Assoc. Inc. - Shaded seating 8,085
theatre Recreation
Community
Friends of Noosa Botanic Gardens Inc. - Noosa Botanic Gardens Plant Fair 2,000 Orange Sky Laundry Inc. - Contribute to fit out of mobile laundry Human Services 15,000
Development
Sport & Active Anglican Parish of Noosa - Fit out kitchen for school meals for disadvantaged children Human Services 7,500
Sunshine Coast Sports Aviators Inc. - Teewah Airfield enviro waste water treatment 8,975
Recreation
Noosa Integrated Catchment Association Inc. -Noosa River water testing, water bird
Environment 3,515
Noosa International Film Festival Inc. - 2016 Noosa International Film Festival Arts and Culture 5,000 surveys and rubbish collection
Noosa Integrated Catchment Association Inc. auspicing 'Friends of Kinaba' - Outboard Tewantin Noosa Lions Club Inc. aupsicing the Noosa Rainbow River Festival - Noosa Community
Environment 3,655 1,000
motor for motor boat Rainbow River Festival Development
Sport & Active Sport & Active
Kin Kin Tennis Club Inc. - Tennis court upgrade 8,110 Cooroora United Football Club Inc. - Hot Water System 1,221
Recreation Recreation
National Institute for Socio-economic & Environmental Research (NISER) Ltd. - Fitout Community Noosa & District Landcare Group Inc. - Fodder plantation for feeding rehabilitating
2,390 Environment 5,595
downstairs kitchenette Development wildlife
Sport & Active
Australian Volunteer Coast Guard Assoc. Inc. - Infra Red search camera replacement Public Safety 10,700 Cooroy Eumundi Cricket Club Inc. ' - Field Irrigation of Sel Bonnell Oval 4,972
Recreation
Sport & Active
Australian Skateboarding Federation Ltd. - Noosa Shire skatepark activations 8,000 121 Care Inc. - Noosa Come Together event Human Services 2,000
Recreation
Sport & Active Noosa & District Landcare Group Inc. - Noosa Catchment Biopassage Assessment Environment 15,575
Cooroy Badminton Club Inc. - Drainage and repair of damaged walls 2,989
Recreation
United Synergies Ltd. - Celebrating Safe Families event Human Services 2,000
Noosa Open Studios Inc. - 'Noosa Open Studios' event Arts and Culture 6,250
Sunshine Coast Health Network Limited trading as Healthy Towns - Healthy Towns
Men's Shed Pomona (Auspiced by Pomona and District Community House Inc.) - First Community Human Services 1,000
3,875 Awards Program
aid and resuscitation safety equipment Development
United Synergies Ltd. - Project Management for the renovation of Tait-Duke Community
Pomona & District Community House Inc. - National Youth Week - workshops for 12 - Community 13,500
939 Community Cottage Development
16 year olds Development
Sport & Active - : 286,908
Noosa District Rugby League Club Inc. - 'Legends of League' event 5,000
Recreation
Three Year Sports Field Maintenance - Year 2
Sport & Active
Noosa Triathletes Inc. - 'Women Love to Tri' - 10 week program for 30+ women 3,000
Recreation Sport & Active
Noosa District Softball Association Inc. - sports field maintenance 14,159
Sport & Active Recreation
Cooroora United Football Club Inc. - Floor covering replacement 2,146
Recreation Sport & Active
Noosa District Rugby Union Club - sports field maintenance 14,159
Ceramic Centre for Excellence Inc. - 'Smoke on the Water' - Australian Woodfire Recreation
Arts and Culture 6,250
Ceramics Conference Sport & Active
Noosa Touch Association - sports field maintenance 11,327
Sport & Active Recreation
Cooroy Gymnastics Club Inc. - Landing pit refurbishment 16,829
Recreation Sport & Active
Noosa Australian Football Club Inc. - sports field maintenance 16,991
Sport & Active Recreation
Noosa Outrigger Canoe Club Inc. - Heavy duty covers for 8 x 6 man outrigger canoes 3,288
Recreation Sport & Active
Tewantin Noosa Cricket Club - sports field maintenance 21,239
Sport & Active Recreation
Noosa Malibu Club Inc. - Storage facility 8,196
Recreation Sport & Active
Pomona Cooroy and District Australian Football Club Inc. - sports field maintenance 8,496
Recreation
Noosa Heads Jazz Club Inc. - 'Noosa Jazz Picnic' - free public concert Arts and Culture 2,000
Sport & Active
Community Noosa Lions Football Club Inc. - sports field maintenance 19,823
Recreation
Federal Memorial Hall and Community Centre Inc. - Purchase of refrigerator 986
Development Sport & Active
Cooroy Eumundi Cricket Club Inc. - sports field maintenance 8,496
Noosa Lions Football Club Inc. - Renovation public areas and provide spectator Community Recreation
4,000
seating Development
Pomona & Cooran Amateur Rugby League Football Club Inc. - sports field Sport & Active
14,159
Alliance Francaise De La Sunshine Coast Inc. - International French Film Festival Arts and Culture 1,000 maintenance Recreation
Sport & Active
Sport & Active Cooroora United Football Club Inc. - sports field maintenance 8,496
Noosa District Junior Rugby League Football Club Inc. - Sports field lighting upgrade 30,000 Recreation
Recreation
Sport & Active
Sport & Active Noosa District Junior Rugby League Football Club - sports field maintenance 14,159
Noosa Branch Little Athletics Centre Inc. - Replace long jump pit covers 1,791 Recreation
Recreation
Sport & Active
Community Noosa District Rugby League Club Inc. - sports field maintenance 11,327
Veggie Village Community Gardens Inc. - Upgrade of water-drainage system 1,450 Recreation
Development
- : 162,831
Page 24 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 25
Section 14
Community Grant Recipients Type Funding
Amounts
Discretionary funds Competitive neutrality
($) Section 109 of the LG Act, defines discretionary Council’s is committed to ongoing compliance
Festive Season Event Grants - Year 1 funds as funds in the local government’s operating with National Competition Policy principles and its
fund that are: legislative obligations in this area. It is committed
Lake Cootharaba Sailing Club Inc. - New Years Eve@ the Lake Arts and Culture 3,000 to ensuring that its business activities operate on
• budgeted for community purposes, and a level playing field with private businesses in the
Cooroy Pomona Lions Club Inc. - Pomona Night of Lights Arts and Culture 2,400 • allocated by a Councillor at the Councillor’s community.
discretion.
Tewantin Noosa Sub Branch Inc. - 21st Gala Christmas Carnival Arts and Culture 3,500 Council ensures that the pricing practices for each
There were no Councillor discretionary funds business activity complies with the principles of
established during the period. full cost pricing such that total revenue, inclusive
Tewantin Noosa Lions Club Inc. - Australia Day event Arts and Culture 10,000
of identified and measured community service
Cooroy Chamber of Commerce Inc. - Christmas in Cooroy Arts and Culture 7,000
Beneficial enterprises obligations and net of any advantages and
disadvantages of public ownership, should aim to
Christian Outreach Centre - Noosa Carols on the River 2016 Arts and Culture 8,000 cover the following elements:
Section 39(3) of the LG Act defines a beneficial
Noosa Marina - New Year's Eve laser and music show Arts and Culture 5,000 enterprise as an enterprise that a local government • Operational and resource costs;
considers is directed to benefiting, and can
• Administration and overhead costs;
East Coast Originals - Peregian Beach Christmas Carols Arts and Culture 3,500 reasonably be expected to benefit, the whole or part
of its local government area. • Depreciation;
- : 42,400 • Tax and debt equivalents; and
Section 39(4) of the LG Act provides that a local
Three Year Signature Community Event Grants - Year 1 government is conducting a beneficial enterprise if • Return on capital / return on cost.
the local government is engaging in, or helping, the During the period, there were no investigation
Mary River Catchment Coordination Association Inc. - Noosa Festival of Water Environment 8,500 beneficial enterprise. notices provided to Council relating to competitive
Council did not engage in any beneficial enterprises neutrality complaints. Accordingly, The Queensland
Noosa A H & I Society Inc. - Noosa Country Show Arts and Culture 10,500 Competition Authority did not make any reportable
during the period.
recommendations to Council in relation to a
Noosa Long Weekend Inc. - Noosa Alive Festival Arts and Culture 10,500
competitive neutrality complaint.
Cooroy Pomona Lions Club Inc. - King of the Mountain Festival
Sport & Active
10,000 Business activities
Recreation
United Synergies Ltd. - Booin Gari Festival Arts and Culture 7,500
A business activity is defined in Schedule 4 of the
LG Act as “the trading in goods and services by the
Services, facilities and
Cooroy Future Group Inc. - Cooroy Fusion Festival Arts and Culture 7,000 local government”. activities, for which special
- : 54,000
Council conducted the following business activities rates/ charges levied
during the period:
Below is a list of Council levies and special charges
Economic Development Grant • waste management, and for the period:
Noosa Chamber of Commerce and Industry Inc. - Business success workshops 1,728 • holiday parks including the Boreen Point
Campground, Noosa North Shore Beachfront • Tourism and Economic Levy
Noosa Chamber of Commerce and Industry Inc. auspicing The Trashy Artisan Caravan Park and Noosa River Holiday Park. • Noosa Waters Lock and Weir Maintenance Levy
12,500
Cooperative Ltd. - Noosa Creative Business and Upcycling Collective
• Noosa Waters Canal Maintenance Levy
Noosa Chamber of Commerce and Industry Inc. auspicing The Powerhouse Co-Op -
Fit out 'The Powerhouse Co-Op' - a co-working space for entrepreneurial mothers.
10,000 Significant business activity • Noosa Junction Levy
In accordance with threshold of expenditure and the • Hastings Street Precinct Maintenance Levy
- : 24,228
methodology prescribed by ss. 19 and 20 of the LG • Noosa Main Beach Maintenance Levy
Other Regulation, Council’s waste management activity
• Rural Fire Charge
was considered a significant business activity for the
3 grant repayments (13,819) period. • Hastings Street Community Safety Program
Charge
• Lower Noosa North Shore Electricity Charge
Commercial business units
TOTAL EXPENDITURE FOR THE PERIOD: 836,864
Pursuant to s 27(2) of the LG Regulation, a
commercial business unit is a business unit
that conducts business in accordance with the
Notes: prescribed key principles of commercialisation.
1. The Regional Arts Development Fund grants were funded 50/50 between the Queensland Arts Council and Council.
The above amount is Council’s contribution.
Council did not nominate any business activities as
2. Grant repayments relate to funds returned to Council relating to previous grant rounds that were not acquitted.
commercial business units during the period.
Page 26 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 27
Section 15
Summary of concessions for rates and charges
General rate concessions Deferral of general rates Available pensioner concessions for the period
In addition to those classes of land granted a To assist eligible pensioners who have experienced Table 9 below provides a summary of available pensioner concessions for the period.
general rate exemption under s93(3) of the LG Act large increases in the value of their property as
and s73 of the LG Regulation, Council was able to determined by the Department of Natural Resources
grant a general rates concession to land identified and Mines, or who have experienced financial Table 9 - Pensioner Concessions
in s20(1)(b) of the LG Regulation to the extent hardship, Council allows deferment of up to 50% of
Pension Rate Sole title to the property Joint title to the property
that Council was satisfied the land at the relevant the general rate by way of application.
time was owned by an entity whose objects do not
include making a profit, or an entity that provides The deferred rates accumulate as a debt against Maximum level of pension $230 p.a. maximum $180 p.a. maximum
assistance or encouragement for arts or cultural the property until it is sold or until the death of the
development and is one of the following: ratepayer. $115 per half year $90 per half year
• Boy Scout or Girl Guide Association; The deferment of general rates applies only to rates Not maximum level of pension $115 p.a. maximum $65 p.a. maximum
payable with respect to land included in Differential
• Surf Lifesaving or Coastguard organisation; $57.50 per half year $32.50 per half year
General Rates Categories 1, 6, 7, 8, 9, 10, 11, 12,
• community sporting organisation – not-for- 13, 14, 15, 28 & 30.
profit organisations without a commercial liquor
licence; To be eligible to defer up to 50% of the general rate
the applicant must:
• community cultural or arts organisation – not-
Single owner on the maximum rate of pension
for-profit organisations without a commercial • own and occupy the property, and
liquor licence; or Where the pensioner was in receipt of the maximum level of pension and had sole title to the property
• have no overdue rates and charges on the said
• charitable organisation, which is: property, and that is their principal place of residence for the period, the concession was 25% of the general rate up to a
maximum amount of $230.00 per annum.
a. A not-for-profit organisation • be the holder of a Pension Concession Card
issued by Centrelink or the Department of Joint owner on the maximum rate of pension
b. Registered as a charity institution or a
Veteran Affairs, or
public benevolent institution
Where the pensioner was in receipt of the maximum level of pension and owned the property jointly with
• a Repatriation Health (Gold) Card issued by the
c. Providing benefits directly to the one or more people for the period, the concession was 25% of the general rate up to a maximum amount of
Department of Veteran Affairs, or
community $180.00 per annum.
• a Commonwealth Seniors Health Card, or
d. Endorsed by the Australian Tax Office - Single owner not on the maximum rate of pension
Charity Tax Concession. • a Queensland Seniors Card issued by the
Queensland State Government. Where the pensioner was not in receipt of the maximum level of pension and had sole title to the property
The relevant concession for the period for eligible
that was their principal place of residence for the period, the concession was 25% of the general rate up to a
entities was 100% of the general rate. Automatic eligibility applies to those ratepayers
maximum amount of $115.00 per annum.
currently receiving a Pension Concession on their
rate notice. Eligibility for those ratepayers with a Joint owner not on the maximum rate of pension
Seniors Card will be assessed accordingly.
Where the pensioner was not in receipt of the maximum level of pension and owned the property jointly with
one or more people for the period, the concession was 25% of the general rate up to a maximum amount of
$65.00 per annum.
Interest charges on deferred rates
In accordance with s122(5) of the LG Regulation,
Council is authorised to charge interest, or request
payment of an additional charge, to all deferred
general rates for the relevant period.
For the period there was one rate payer who had
their general rates deferred for the relevant period.
Page 28 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 29
Section 16
Invitations to change Internal Audit
tenders Council recognises the relevance of strengthening
There was one reportable invitation made by governance and control systems through the
Council to change tenders during the period for establishment of an efficient and effective internal
contract - 1617T047 Kinmond Creek Road. This audit function.
tender was withdrawn completely to take into
Council’s Internal Audit Plan for each financial year
consideration specification changes and a change
is developed having regard to current operational
in the implementation timing requirements of
risks. Council’s internal audits are conducted in
Council’s Capital Works Executive. The contract
accordance with Council’s Internal Audit Terms of
was later incorporated within tender 1617T112.
Reference and Internal Audit Policy, the objectives
of which include providing independent, objective
Audit and Risk Committee assurance and appropriate services designed
to add value and improve Council’s operations.
During the period, Council’s Audit and Risk Council’s Internal Audit Plan for each period is
Committee, which consists of two Councillor reviewed and adopted by the Audit and Risk
members and two expert independent external Committee.
members, held four formal committee meetings The Internal Audit activities for the period included a
and played an active role as an advisory committee review of the following:
to Council through the provision of independent
comment, advice and counsel on audit and risk • Procure to Pay Processes; and
management issues covering a wide range of • Investment of Surplus Funds.
Council operations and projects.
The above Audits were completed by specialist
In accordance with Council’s Audit and Risk external providers. Council has in place a
Committee Charter, a key duty of the Committee number of systems and processes to ensure that
is to provide reasonable assurance to Council that recommendations resulting from its internal audits
its core business goals and objectives are being are appropriately actioned and implemented into
achieved in an efficient and economical manner, day-to-day operations.
within an appropriate framework of internal control
and risk management.
The Audit and Risk Committee observed the terms
of its Charter for the period and conducted an
annual assessment of its performance.
Page 30 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 31
Section 17
Community Financial Report 2016/17
Where was the budget spent?
Council spends significant amounts of ratepayer funds providing a range of services to the Noosa
community. A summary of the cost of the services for our major service areas is provided in the graph below.
Spending on these services (including roads, bridges, parks, community facilities and waste management)
makes up a significant component of Council’s annual budget.
Figure 2 - Operating Cost of Core Council Services 2016/17 ($’000)
$30,000
Background $25,000
This report aims to simplify the financial information that Council is required to prepare under legislation and
provides a simple summary of Council financial performance for the 2016/17 year just ended (1 July 2016
$20,000
through to 30 June 2017).
Council’s annual financial statements are prepared to comply with $15,000
Australian Accounting Standards, and contain specific information
regarding financial performance.
$10,000
Financial statements include a statement of comprehensive income
(i.e. profit and loss), a statement of financial position (i.e. balance
sheet), a statement of cash flows as well as a statement of changes $5,000
in equity. Collectively, the statements provide a formal picture of the
financial strength of an organisation.
$0
Waste/ Health
Roads/ Bridges/ Drainage
Parks & Reserves
Community Facilities
Libraries/ Galleries
Property/ Holiday Parks
Planning & Environment
Building/ Plumbing
Economic Development
Community Development
Local Laws
Community Engagement
The Community Financial Report (CFR) consists of five key reporting
elements, each of which has a specific purpose for the measurement
and presentation of Council’s finances. The linkages between the five
key elements are shown in the figure on the right.
Figure 1 - Financial Reporting Elements
Highlights and achievements
In line with previous years, Council has achieved a strong financial result for the 2016/17 year. The following Statement of comprehensive income
key outcomes were achieved during the period:
This statement (also known as the profit and loss) measures how Council performed financially in relation
1. An operating surplus of $3.1 million as a result of strong revenue growth and good expenditure to funding its operations during the financial year. In simple terms, it summarises how much money was
management, as well as some unspent levy funds that are required to be held for future use. received by Council and how much was spent in a particular year. The following table summarises Council’s
2016/17 financial performance.
2. A positive net result of $17.1 million when adding Council’s share of Unitywater’s annual profit, capital
revenue and capital income to Council’s operating profit, whilst deducting capital expenses. Figure 3 - Council Financial Performance 2016/17 ($’000)
3. An increase in cash holdings and a decrease in debt levels required to be repaid.
2015/16 2016/17
4. No significant issues identified in the annual audit of Council’s finances by the Queensland Government. ($’000) ($’000)
Revenue 103,991 106,999
Expenses 84,944 89,875
Net Result 19,047 17,124
The 2016/17 net result of $17.1 million includes revenue received specifically to fund capital expenditure
(including grants and subsidies and developer contributions), Council’s share of Unitywater’s annual profit
as well as income and expenses recognised for investment property valuation changes, movement in the
provision for future landfill rehabilitation costs, and asset disposals. The removal of the $14 million of non-
operational items shows Council’s actual operating surplus to be $3.1 million.
Page 32 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 33
Section 18
Operating revenue – where the money came from Statement of financial position
Throughout the financial year, Council received a total of $91.4 million The statement of financial position (or balance sheet) measures what Council owns (i.e. its assets), and what
Grants &
in operating revenues (rates, fees, operating grants), $9.8 million in Other
we owe (i.e. liabilities) to determine the total community equity (net worth) at the end of each financial year.
capital revenues (developer contributions, capital grants) and $5.8 InterestRevenue Overall, Council’s investment in community capital continues to grow strongly.
5%
million recorded as revenue from Council’s share of investment in 7%
Unitywater.
Fees &
Charges Figure 6 - Comparative Statement of Financial Position 2016/17 ($’000)
Figure 4 outlines the sources of Council’s $91.5 million in operating
16%
revenue received in 2016/17. The breakdown in operating revenue 2015/16 2016/17
Rates & Utility
confirms that Council has significant control over the majority of Charges 68% ($’000) ($’000)
Other Income
its income sources, and as a result is not reliant on other levels 4% Assets 1,095,126 1,119,295
of government or external agencies to maintain its financial
independence. Liabilities 58,502 64,418
Key Council revenue sources include: Community Equity 1,036,624 1,054,877
• Rates and utility charges include general rates, charges Figure 4 - Operating Revenue Sources 2016/17
for waste collection and disposal, special rates such as the
tourism and transport levy as well as other separate and
special rates.
• Fees and charges include a range of regulatory fees and charges as well as revenue from commercial
operations such as holiday parks and waste management.
• Interest revenue includes the return from the investment of available cash. The graph below shows Council’s cash and debt holdings as at 30 June 2017 compared to the previous
• Revenue from other income includes tax payments from Council’s shareholding in Unitywater. year. Cash levels have increased despite the investment in a large capital program undertaken during
2016/17. Debt levels have marginally decreased as Council continues to minimise its debt position.
Figure 7 - Cash and Debt Comparison 2016/17
$80,000
2015/16 ($'000)
Operating expenditure – where the money goes $70,000 2016/17 ($'000)
Council expended a total of $88.3 million in undertaking operating activities during the financial year. Figure 5 $60,000
presents a breakdown by expenditure type for normal operating expenditure incurred during 2016/17.
$50,000
Key Council expenditure sources include:
$40,000
• Employee benefits - includes staff wages, superannuation, fees
Depreciation
paid to Councillors and other employment costs. $30,000
20% Employee
• Depreciation expenditure – records the consumption of Benefits
community infrastructure assets over their respective useful lives, $20,000
Finance & 33%
and provides an indication of the level of required expenditure on Other Costs 5%
the rehabilitation and renewal of existing assets annually. $10,000
• Materials and services – includes information communication $0
technology, consultancy services, contractor services, electricity, Materials &
Cash Debt
external hire, rentals, repairs and maintenance, and advertising Services 42%
and donations.
Figure 5 - Operating Expenses by function 2016/17
Page 34 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 35
Section 19
Assets - what we own Work in Statement of cash flows
Progress
Current assets are represented by cash, Other $18,059 Land & The statement of cash flows shows where Council has generated cash and where these funds have been
investments, inventories and receivables (money Infrastructure Improvements expended. The detailed schedule in the financial statements is summarised in the following graph (columns
owed to Council). Council’s current assets as at 30 $53,887 $130,109 above the line represent cash flowing into the organisation, and columns below the line represent cash
Stormwater &
June 2017 equated to $75.7 million. payments made).
Drainage
Buildings $60,393
Non-current assets of over $1 billion, includes $115,511
Key elements to Council’s annual cash flow include:
property, plant and equipment totalling $913 Intangible Assets Plant & Equipment
million, as well as the value of Council’s investment $3,497 $9,613 • Operating activities depicts the net of income received from rates, interest, grants, etc. and payments
in Unitywater. Property, Plant and Equipment made to suppliers and employees (net increase).
represents community infrastructure which includes • Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the form
roads, bridges, stormwater, buildings, land and of roads, bridges, plant and equipment, etc. A negative outcome here represents a net investment in
other operational assets owned and controlled by Roads & Bridges community infrastructure during the reporting period.
Council. The main non-current asset categories and $525,579
• Financing activities shows the receipt and repayment of Council borrowings. A negative outcome here
their respective values are shown in the following represents that Council has repaid more loans compared to new borrowings raised.
figure.
• Net movement in cash represents the physical movement of cash, with any accounting adjustments and
Figure 8 - Non-Current Assets and accruals removed. The net movement in cash for the year of $12.8 million represents the net increase in
cash on hand, with all significant outlays fully funded within the period.
Community Infrastructure 2016/17 ($’000)
Figure 9 - Net Cash Flow Sources 2016/17 ($’000)
$35,000
$30,000
$25,000
Liabilities – what we owe Statement of changes in $20,000
Money owed by Council is presented as both
equity $15,000
$10,000
current and non-current liabilities in the statement The statement of changes in equity illustrates how $5,000
of financial position. Current liabilities are those the net worth of Council has changed as a result of
amounts that are payable by Council within the activities undertaken during the period. Council’s $0
next twelve months, and non-current liabilities are total community equity as at 30 June 2017 is $1.1 $-5,000
payable beyond the twelve month horizon. billion. Community equity is equal to total assets $-10,000
(what we own) less total liabilities (what we owe)
The most significant element is loans raised by $-15,000
and represents Council’s net investment in assets.
Council to fund the investment in community
$-20,000
infrastructure. During 2016/17, Council’s total loan Operating Activities Investing Activities Financing Activities Net Movement in Cash
borrowings decreased slightly due to repayments
for the year being greater than the value of new
borrowings.
Page 36 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 37
Section 20
Financial Ratios Asset sustainability ratio
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation. Ratios This ratio is calculated by measuring the annual expenditure on the renewal and rehabilitation of Council’s
can also be useful in comparing Noosa Council to other Councils to gain an understanding of relative assets against the annual depreciation charge. It is a measure of whether Council is reinvesting in existing
financial strength. This analysis is undertaken periodically by the Queensland Treasury Corporation (QTC) in assets to ensure that they meet required levels of service for the community.
assessing the financial sustainability of Council.
Asset Sustainability Ratio – infrastructure Asset Sustainability ratio – all assets (not
A number of sustainability ratios are mandated under the Local Government Regulation 2012, including assets (audited) audited)
target ranges for each measure. Details of these ratios are shown in the table below, including actual results
for the current reporting period plus projections over the next 9 years. This is the ratio audited by the Queensland When considering the replacement of all assets
Government and specifically excludes the when measuring asset sustainability, Council
replacement of non-infrastructure assets such as achieved a ratio of 90.6% for the 2016/17 financial
Figure 10 - Financial Ratios 2016/17 (Actual) to 2025/26 (Forecast)
Council plant and fleet. During 2016/17 Council year. This is considered an excellent result and
Period ended 30 June 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 achieved a ratio of 82%. This ratio is reflective of reflects Council’s continued investment in asset
the efficient delivery of the capital program during replacement and implementation of the recently
Sustainability Ratios the year, including an investment of $13.5 million developed asset management roadmap.
Operating Surplus Ratio in the replacement of infrastructure such as roads,
bridges and buildings.
Operating Position 9.2% 0.0% 0.2% 0.2% 0.6% 0.6% 0.6% 0.5% 0.3% 0.3%
Local Govt Act upper indicator 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Net Financial Liabilities Ratio
Net Financial Liabilities Ratio (11.6)% (8.3)% (13.5)% (11.9)% (12.3)% (7.0)% (3.7)% (1.2)% 0.1% 1.9%
Local Govt Act upper indicator 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
Asset Sustainability Ratio (not audited)
Summary
Asset Sustainability Ratio 90.6% 109.5% 105.3% 75.6% 78.5% 85.1% 93.5% 90.2% 86.9% 92.4%
Local Govt Act minimum indicator 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% The financial period ended 30 June 2017 represents an excellent financial result for Council, and provides a
Colour Scale: Within Moderate Outside firm foundation for future operations. Ongoing innovation and a commitment to strong financial management
Range Range through compliance with our Financial Sustainability policy will ensure that this position is maintained into the
Note: The asset sustainability ratio calculation includes both infrastructure asset renewal and plant asset renewal
future.
Operating surplus ratio Net financial liabilities ratio
This ratio measures the operating surplus achieved This ratio represents Council’s net financial
for the period and represents the operating surplus liabilities (total liabilities less current assets)
/ (deficit) as a percentage of operating revenue. A expressed as a percentage of total operating
surplus will be represented by a positive result. revenue. The target range is less than 60%. A
negative percentage indicates that current assets
Council’s should be aiming to achieve as a exceed total liabilities, and is considered a very
minimum a balanced operating position to strong position.
ensure that revenues received are sufficient to
fund operations and capital replacement works. The strong position of (11.6%) as at 30 June 2017
The 2016/17 operating surplus ratio of 9.2% is indicates that Council has capacity to service
a reflection of strong revenue growth along with higher levels of debt if needed, though additional
good management of our expenditure, as well debt funding has not been included in forward
as some unspent levy funds that are required to projections.
be held for future use. The forecast also shows
Council’s ongoing commitment to strong financial
management.
Page 38 | 2016-2017 Annual Report 2016-2017 Annual Report | Page 39
Section 21
FINANCIAL STATEMENTS
for the year ended 30 June 2017
I
'NOOSA COUNCIL
Section 22
Noosa Shire Council
Financial Statements
for the year ended 30 June 2017
Table of Contents Page
1. Primary Financial Statements:
Statement of Comprehensive Income 2
Statement of Financial Position 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
2. Notes to the Financial Statements
1 Summary of Significant Accounting Policies 6
2(a) Council Functions- Component Descriptions 8
2(b) Council Functions- Analysis of Results by Function 9
3 Revenue Analysis 10
4 Grants, Subsidies, Contributions and Donations 12
5 Employee Benefits 13
6 Materials and Services 13
7 Depreciation and Amortisation 14
8 Cash and Cash Equivalents 14
9 Trade and Other Receivables 15
10 Investment Property 16
11 Property, Plant and Equipment 17
12 Fair Value Measurements 21
13 Intangible Assets 27
14 Trade and Other Payables 27
15 Borrowings 28
16 Provisions 29
17 Asset Revaluation Surplus 31
18 Commitments for Expenditure 32
19 Contingent Liabilities 33
20 Superannuation 34
21 Operating Lease Income 35
22 Equity Investments 36
23 Trust Funds 38
Reconciliation of Net Result for the year to Net Cash
24 38
Inflow (Outflow) from Operating Activities
25 Restated Balances 39
26 Events Occurring After Balance Sheet Date 41
27 Financial Instruments 41
28 National Competition Policy 46
29 Transactions with Related Parties 47
3. Management Certificate 50
4. Independent Auditor's Report 51
5. Current Year Financial Sustainability Statement 53
Certificate of Accuracy- Current Year Financial Sustainability Statement 55
Independent Auditor's Report- Current Year Financial Sustainability Statement 56
6. Long Term Financial Sustainability Statement 58
Certificate of Accuracy- Long Term Financial Sustainability Statement 60
page 1
Section 23
Noosa Shire Council
Statement of Comprehensive Income
for the year ended 30 June 2017
Restated
2017 2016
Notes $'000 $'000
Income
Revenue
Recurrent Revenue
Rates, Levies and Charges 3a 62,531 60,665
Fees and Charges 3b 5,494 5,701
Rental Income 1,337 1,227
Interest and Investment Revenue 3c 4,831 4,908
Sales Revenue 3d 8,604 8,049
Other Income 2,371 2,406
Grants, Subsidies, Contributions and Donations 4a 6,287 5,205
Total Recurrent Revenue 91,455 88,161
Capital Revenue
Grants, Subsidies, Contributions and Donations 4b 9,530 9,718 *
Total Revenue 100,985 97,879 *
Capital Income 255 319
Equity share of profit (loss) in investment in associate through participation
rights 22 5,759 5,793
Total Income - 106,999 103,991 *
Expenses
RecurtentExpenses
Employee Benefits 5 28,849 27,822
Materials and Services 6 37,418 35,671
Finance Costs 4,374 3,275
Depreciation and Amortisation 7 17,671 16,973
Total Recurrent Expenses 88,312 83,741
Capital Expenses 1,563 1,203
Total Expenses 89,875 84,944
Net Result 17,124 19,047 *
Other Comprehensive Income
Items that will not be reclassified to Net Result
~rease/(decrease) in Asset Revaluation Surplus 17 2,375 10,183
Total Other Comprehensive Income 2,375 _ _ 10,183
Total Comprehensive Income for the period 19,499 29,230 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 2
Section 24
Noosa Shire Council
Statement of Financial Position
as at 30 June 2017
Restated
2017 2016
Notes $'000 $'000
ASSETS
Current Assets
Cash and Cash Equivalents 8 65,463 52,586
Trade and Other Receivables g 9,899 8,572
Inventories 330 156
- ---
Total Current Assets 75,692 61,314
Non-Current Assets
Trade and Other Receivables 9 49,218 49,218
Equity Investments 22 73,332 69,141
Investment Property 10 4,405 4,150
Property, Plant and Equipment 11 913,151 908,689 *
Intangible A~se~ 13 3,49,7 ·- ?,61-:l
Total Non-Current Assets 1,043,603 1,033,812 *
TOTAL ASSETS 1::\1~J~2.~ - ..~!.0~9-:5~ 1_2.6- *
LIABILITIES
Current Liabilities
Trade and Other Payables 14 11,818 7,888
Borrowings 15 3,745 2,932
Provisions 4,349 4,329
Other Liabilities 645 538
- - - - --
Total Current Liabilities 20,557 15,687
Non-Current Liabilities
Borrowings 1·- 34,291 35,186
Provisions
--- 9,?!P - ~.?2.~.
Total Non-Current Liabilities 43,861 42,815
TOTAL LIABILITIES 6~_,4J_~ .. -. ~~ 2_81.~0~~ -
Net Community Assets 1,054,877 1,036,624 *
COMMUNITY EQUITY
Asset Revaluation Surplus 17 26,892 24,517
Retained Surplus/(Deficiency) 1)~~!.!~~. j ,Q1_~. 107 *
Total Community Equity 1,054,877 1,036,624 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 3
Section 25
Noosa Shire Council
Statement of Changes in Equity
for the year ended 30 June 2017
Asset
Revaluation Retained Total
Surplus Surplus Equity
Note~ $'000 $'000 $'000
2017
Opening Balance 24,517 1,012,107 1,036,624 *
.!: Correction to O~l]in9 balance (~ .~46) (1 !.246)
Opening Balance (as at 1/7/16) (Restated) • 24,517 1,010,861 1,035,378 *
b. Net Operating Surplus for the Year 17,124 17,124
c. Other Comprehensive Income
Revaluations: Pro~ef!y.!. ~~~-nt. ~!=qu!P· Asset R~valuation Surplu ~ 17 _b37~ -~!~?._5
Other Comprehensive Income 2,375 2,375
Total Comprehensive Income 17,124 19,499
Equity Balance as at 30 June 2017 26,892 1,027,985 1,054,877
=
Asset
Revaluation Retained Total
Surplus Surplus Equity
$'000 $'000 $'000
2016
Opening Balance 14,334 992,720 1,007,054
_!: Correction to op~ ning balance 340 340
Revised Opening Balance (as at 1/7/15) 14,334 993,060 1,007,394
b. Net Operating Surplus for the Year 19,047 19,047 *
c. Other Comprehensive Income
Revaluations: Pro~~!iY!, ~la~! .~ .E.9~~e.: Asset Revaluation Surplus 17 10 ~ 183 '1~,,1 ~.~-
Other Comprehensive Income 10,183 10,183
- - - -
Total Comprehensive Income 10,183 19,047 29,230 *
Equity Balance as at 30 June 2016 (Restated) 24,517 1,012,107 1,036,624 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page4
Section 26
Noosa Shire Council
Statement of Cash Flows
for the year ended 30 June 2017
2017 2016
NotE-s $'000 $'000
Cash Flows from Operating Activities
Receipts from Customers 81,498 81,274
Payments to Suppliers and Employees - _J~~J~~ _ . _(69,327)
13,709 11,947
Receipts:
Investment and Interest Revenue Received 4,831 4,908
Rental Income 1,337 1,227
Non Capital Grants and Contributions 6,287 5,205
Income Tax Equivalent Received 1,456 1,144
Income from Equity Investments 1,568 1,864
Payments:
Interest Expense (122) (105)
Net Cash lnflow/(Outflow) from Operating Activities 24 29,066 26,190
Cash Flows from Investing Activities
Recei pts:
Proceeds of Sale of Property, Plant and Equipment 259 452
Grants, Subsidies, Contributions and Donations 6,314 7,696
Payments:
Payments of Property, Plant and Equipment (19,317) (28,858)
Payments for Intangible Assets (1,176) (202)
Net Cash Inflow/( Outflow) from Investing Activities (13,920) (20,912)_
Cash Flows from Financing Activities
Receipts :
Proceeds from Borrowings 2,697 1,360
Payments:
Repayment of Borrowings (4,966) (4,943)
Net Cash lnflow/(Outflow) from Financing Activities (2,269) (3,583)
Net lncrease/(Decrease) in Cash and Cash Equivalents held 12,877 1,695
Cash and Cash Equivalents at the beginning of the financial year 52,586 50,891
Cash and Cash Equivalents at the end of the financial year 65,463 52,586
-
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 5
Section 27
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Summary of Significant Accounting Policies
(1.a) Basis of preparation (1.c) Date of Authorisation
These general purpose financial statements are for The financial statements were authorised for issue on
the period 1 July 2016 to 30 June 2017 and have the date they were submitted to the Auditor-General
been prepared in compliance with the requirements for final signature. This is the date the management
of the Local Government Act 2009 and the Local certificate is signed.
Government Regulation 2012. Consequently, these
financial statements have been prepared in (1.d) Adoption of New and Revised
accordance with all Australian Accounting Accounting Standards
Standards, Australian Accounting Interpretations and
other authoritative pronouncements issued by the In the current year, Council adopted all of the new and
Australian Accounting Standards Board. revised Standards and Interpretations issued by the
Australian Accounting Standards Board (AASB) that
These financial statements have been prepared are relevant to its operations and effective for the
under the historical cost convention except for the current reporting period. The adoption of the new and
following: revised Standards and Interpretations has not
resulted in any material changes to Council's
• Financial assets and liabilities, certain classes of accounting policies.
property, plant and equipment and investment
property which are measured at fair value; Noosa Shire Council has not applied any Australian
Accounting Standards and Interpretations that have
Council is constituted under the Queensland Local been issued but are not yet effective.
Government Act 2009 and .is domiciled in Australia.
AASB 124 Related Party Disclosures is applicable
Council uses the Australian dollar as its functional from 1 July 2016. This year Council has applied
currency and its presentation currency. AASB 124 Related Party Disclosures for the first time.
This information is presented in Note 29.
Amounts included in the financial statements have
been rounded to the nearest $1,000 unless Other amended Australian Accounting Standards and
otherwise indicated. Interpretations which were issued at the date of
authorisation of the financial report, but have future
Comparative information has been restated where commencement dates are not likely to have a material
necessary to be consistent with disclosures in the impact on the financial statements.
current reporting period.
As at the date of authorisation of the financial
(1.b) Statement of Compliance statements, the standards and interpretations listed
below were in issue but not yet effective.
These general purpose financial statements comply
with all accounting standards and interpretations Effective for annual reporting periods beginning
issued by the Australian Accounting Standards on or after 1 January 2018
Board (AASB) that are relevant to Council's
operations and effective for the current reporting AASB 9 Financial Instruments (December 2009). Is
period. Because the Council is a not-for-profit entity applicable from 1 July 2018 and replaces AASB 139
and the Australian Accounting Standards include Financial Instruments: Recognition and Measurement
requirements for not-for-profit entities which are and changes the classification, measurement and
inconsistent with International Financial Reporting disclosure of financial assets. This change will
Standards (IFRS), to the extent these require Council to measure all financial ass~ts at fair
inconsistencies are applied, these financial value or amortised cost rather than at cost. The
statements do not comply with IFRS. The main impact is expected to be immaterial.
impacts are the offsetting of revaluation and
impairment gains and losses within a class of AASB 15 Revenue from Contracts with Customers is
assets, and the timing of the recognition of non- applicable from 1 January 2018 and will replace
reciprocal grant revenue. AASB 118 Revenue, AASB 111 Construction
page 6
Section 28
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Summary of Significant Accounting Policies (continued)
Contracts and a number of Interpretations. It Noosa Shire Council has categorised and measured
contains a comprehensive framework for the the financial assets and financial liabilities held at
recognition, measurement and disclosure of revenue balance date as follows:
from contracts with customers. Council is reviewing
the way revenue is measured and recognised to Financial assets
identify whether AASB 15 will have a material
impact. • Cash and cash equivalents. Note 8.
• Receivables - measured at amortised cost. Note
AASB 16 Leases is applicable from 1 July 2019 and 9.
will require the recognition of all leases on the
balance sheet. A lease liability will be initially Financial liabilities
measured at the present value of the lease
payments to be made over the lease term. A • Payables- measured at amortised cost.
corresponding right-of-use asset will also be Note 14.
recognised to record the right to use the leased item • Borrowings - measured at amortised cost. Note
over the lease term. The overall impact of this 15.
standard is yet to be quantified and Council will
review over the next reporting period. Financial assets and financial liabilities are presented
separately from each other and offsetting has not
(1.e) Critical accounting judgements and been applied. All other disclosures relating to the
key sources of estimation uncertainty measurement and financial risk management of
financial instruments are included in note 27.
In the application of Council's accounting policies,
management is required to make judgements, (1.g) Taxation
estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent Income of local authorities and public authorities is
from other sources. The estimates and associated exempt from Commonwealth taxation except for
assumptions ate based on historical experience and Fringe Benefits Tax and Goods and Services Tax
other factors that are considered to be relevant. ('GST'). The net amount of GST recoverable from the
Actual results may differ from these estimates. The A TO or payable to the ATO is shown as an asset or
estimates and ongoing assumptions are reviewed on liability respectively.
an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the Unitywater pays Council an income tax equivalent in
estimate is revised and in future periods as relevant. accordance with the requirements of the Local
Government Act 2009. Where the activity of such an
Judgements, estimates and assumptions that have a entity is subject to the tax equivalents regime, the
potential significant effect are outlined in the income tax expense is calculated on the operating
following financial statement notes: surplus adjusted for permanent differences between
taxable and accounting income.
• Investment Property - Note 10
• Valuation and depreciation of Property,
Plant & Equipment - Note 11
• Provisions - Note 16
• Contingent Liabilities - Note 19.
(1.f) Financial assets and financial
liabilities
Council recognises a financial asset or a financial
liability in its Statement of Financial Position when,
and only when, · Council becomes a party to the
contractual provisions of the instrument.
page 7
Section 29
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 2(a). Council Functions- Component Descriptions
Details relating to the Council's functions I activities as reported in Note 2(b) are as follows:
CEO
The goal of the Chief Executive Officer function is to provide leadership to the organisation to ensure it meets its
strategic and operational objectives, as well as to provide executive support to Councillors, the Chief Executive
Officer (CEO) and Council leadership team. Service areas include the CEO's office and internal audit.
COMMUNITY SERVICES
Community Services goals are to provide facilities and opportunities for residents and visitors to participate in
community, cultural and recreational activities across the shire; protect the health and safety of the Noosa
community; and assist community groups and organisations through the provision of advice and community grants.
Service areas include Cemeteries, Community Development, Cooroy and Noosaville Libraries, Environmental
Health, Local Laws, Noosa Aquatic Centre, Noosa Community Support, Noosa Leisure Centre, Noosa Regional
Gallery, Pest and Vector Control, the J, and Waste Management.
PLANNING AND INFRASTRUCTURE
The goals of the Planning and Infrastructure department are to provide efficient planning and asset management
services including infrastructure planning and development assessment. The department operates and maintains
infrastructure including roads and bridges, buildings,. canals, parks, storm water drainage, waterways, beaches and
bushland in the Noosa shire in accordance with established service levels. Service areas include Building and
Plumbing Services, Civil Works, Infrastructure Planning and Design, Parks and Gardens, Planning and
Environment, Disaster Management and Strategic Land Use Planning.
EXECUTIVE OFFICE
The goal of the Executive office is to provide effective governance oversight of the organisation, human resource
management support to the organisation, support economic development, support sustainability initiatives, and
ensure Council's customer focus including communication and community engagement processes. Service areas
include the Community Engagement, Customer Service, Executive Office, Economic Development, Sustainability,
Governance and Human Resources.
CORPORATE SERVICES
The goal of the Corporate Services department is to provide effective support to the organisation to ensure that
Council services are provided in accordance with agreed service levels that ensure Council's ongoing sustainability.
Service areas include Financial Services, Information Communication Technology, Procurement and Fleet,
Property and Facilities and Revenue Services
page 8
Section 30
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 2(b ). Analysis of Results by Function
Gross Program Elimination· Gross , Elimination;
I '
Functions f--- lncom~ - 1 of ln~er-: Total E~p~ses_ of ln~er-; Total Net Total Assets.
, Functloni Income T t Funct1oni Expenses Result
0 1
2017
CEO
f-
Grants ' Other
·$--;ooo"'f -_ ~~·~~Of
Activities!
-t§o~ F ~ _t~~~- -=-~- --$~~~):--_ ·vo~r
a Activities:
: : s;~~~=s;~~~)l --s-o~
Community Services 3,211 20,590 {884)~ I
22,917 {33,713) I 6,384 {27,329) {4,412) 1,115
Planning and Infrastructure 2,984 13,524 {2,709)j 13,799 {45,158) · 7,155 {38,003) {24,204) 308
Executive Office 4 7,901 {3,253)~ 4,652 {8,670) 1,213 1 {7,457) {2,805) -
.fEfP.5_>rate Se_rvice§'_ _ _ _ - 1--- ?.?1~. - - 68.r~8.§!_ (!!h4741:. 6_:1 ,440 - -~086}. .;..?,526_ - __(16,5§.Q) _ _ _4_~.§~8.9 .. ~ .-...!!.105,51_~-
Total Council 9,42~_· _ 1_1o,r~!. {17,3~~lL ,~~J!I08_ _ <!~7_.!95J.. 17,3~ {89,875) _ _ .:t_~,9. 33 ;_ 1,1os,941 ~
:controlled Entity Net of Eliminations - 4,191 4,191 - ' - - 4,191 12,354 .
~ Total ~ --~---·.. -- 9,424 114,895 (17~326) , .., . 1o6;999_L (107,195) · 1· 7,32o~ - (89,875) - -1·7~1'f4 ---=i-:-119,295_.,
Gros; Program Elimination• ~ Gros s - Elimination :
!:Functions _,l~~~e __ of ln~er-~ Total . -~X.P~.':"~~~ ; of ln~er- : Total Net Total Assets ~·
Recurrmg Funct1on; Income R . . Funct1on l Expenses Result
. .. ecurrmg 1 A . .. '
Gran t s Oth er A ct 1v1t1es·1 i ct1v1t1es· _
2016 $'ooo.. ~ $~ooo ~~oQ"~ - =- j~·~~o_": ·- -~ Vooo -~ -~f~!!!>~ t ·- - ~-~·o·oa · ~!§Q_~ 1-· --$;ooiJ
CEO I {699) i • {699) {699)
Community Services 2,930 18,986 {315) ; 21,601 {29,789) 1 5,543 1 (24,246) {2,645) 811 1
Planning and Infrastructure 5,307 10,656 {922)1 15,041 (42,280) 7,008 {35,272) (20,231) 94 l
Executive Office 13 r 4,472 - 4,485 (8,121) 317 (7,804) (3,319) {2)1
: Corporate Services
' T~ti'l Councif - - - - -
. 2! 1~~ ' -~ ~~4'!? ; (12}~~)),· ~~~5- -- {!7,92~)_
1
--~ l.O.Q~U.. - _(.1~.9~3) - __1?P~1.?.. 1,086,061 I
~_o_,~!3 -~ - _ ~ P~~~.?l.: (~3lJ68_).;_ _1 ~~Q~~- _ J!!~,_8!~> J 3_,~68 .:. ___ (84,9~ ~-!.~1.1.~-- r- 1,086,964 :
~..g_~!~,?lled En~~ty}'!et of Elill_1inations · 3,929 " • I 3,929 • •: • 3,929 8,162 l
:I;Total 10,373 107~486" (13,868) - 103,991- .- (98,812) 13,86tf ~ (84,944) - 19,047 ·- 1,095,126
page 9
Section 31
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 3. Revenue Analysis
2017 2016
$'000 $'000
Rates, levies, grants and other revenue are recognised as revenue on receipt of funds
or earlier upon unconditional entitlements to the funds.
(a). Rates, Levies and Charges
Where rates monies are received prior to the commencement of the rating/levying
period, the amount is recognised as revenue in the period in which they are received,
otherwise rates are recognised at the commencement of rating period.
General Rates 46,988 45,418
Separate Rates 5,301 5,136
Special Rates 1,560 1,444
.w~s,te Utility Charg~s 11. ~3 11,226
Total rates and utility charge revenue 65,150 63,224
Less: Discounts (1 ,850) (1 ,802)
Less: Pensioner remissions (769) (757)
TOTAL RATES. LEVIES AND CHARGES 62,531 60,665
=
(b). Fees and Charges
Fees and charges are recognised upon unconditional entitlement to the funds.
Generally this is upon lodgement of the relevant applications or documents, issuing
of the infringement notice or when the service is provided.
Building and Development Fees 2,524 2,819
Perm its and Licences 745 808
Fines and Penalties 179 47
Registration Fees 293 292
Parking Penalties 587 612
User Fees and Charges 594 567
Other Statutory Fees 572 556
TOTAL FEES AND CHARGES _5,494 5,701
- -
(c). Interest and Investment Revenue
Interest received from term deposits is accrued over the term of the investment.
Dividends are recognised once they are formally declared by the directors of the
associated entities.
Investments 1,704 1,786
Interest from Overdue Rates and Utility Charges 504 484
Loan to Unitywater 2,623 2,638
TOTAL INTEREST AND INVESTMENT REVENUE 4,831._ 4,908
- -
page 10
Section 32
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 3. Revenue Analysis (continued)
2017 2016
$'000 $'000
(d). Sales Revenue
The amount recognised as revenue for contract revenue during the financial year is
the amount receivable in respect of invoices issued during the period .
Sale of services
Contract and Recoverable Works 18 5
.Refuse Tips and Transfer Station Charges 2,116 2,096
Venue Hire 368 362
Holiday Parks Fees and Charges 3,113 3,120
Learn to Swim 690 604
Admission Fees 1,013 870
Total Sale of Services 7,318 7,057
Sale of goods
Sale of Recyclables 633 431
Retail Shop Sales 653 561
Total Sale of Goods 1,286 992
TOTAL SALES REVENUE 8,604 8,049
There are no contracts in progress at the year end. The contract work carried out
is not subject to retentions.
page 11
Section 33
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 4. Grants, Subsidies, Contributions and Donations
2017 2016
$'000 $'000
Grants & Subsidies
Grants,subsidies and contributions that are non-reciprocal in nature are recognised as
revenue in the year in which Council gains control over them.
Where grants are received that are reciprocal in nature, revenue is recognised as the
various performance obligations are fulfilled under the funding agreement. Council
does not currently have any reciprocal grants.
Non-cash contributions
Non-cash contributions with a value in excess of the recognition thresholds, are
recognised as revenue and as non-current assets. Non-cash contributions below the
thresholds are recorded as revenue and expenses.
Physical assets contributed to Council by developers in the form of road works,
stormwater, infrastructure and park equipment are recognised as revenue when the
development becomes "on maintenance" (i.e. the Council obtains control of the assets
and becomes liable for any ongoing maintenance) and there is sufficient data in the
form of drawings and plans to determine the approximate specifications and values of
such assets. All non-cash contributions are recognised at the fair value of the
contribution received on the date of acquisition.
Cash contributions
Council receives cash contributions from property developers to construct assets such
as roads and footpaths. Where agreements between Council and the developers
relating to these contributions are determined to fall within the scope of AASB
Interpretation 18 Transfers of Assets from Customers, these contributions are
recognised as revenue when the related service obligations are fulfilled.
(a) Recurrent
General Purpose Grants 3,191 2,107
State Government Subsidies and Grants 1,188 1,158
Commonwealth Government Subsidies and Grants 1,820 1,876
Donations 53 38
Contributions 20 8
Other Non-Government Subsidies 15 18
TOTAL RECURRENT GRANTS. SUBSIDIES.
CONTRIBUTIONS AND DONATIONS 6,287 5,205
(b) Capital
State Government Subsidies and Grants 1,909 3,333
Commonwealth Government Subsidies and Grants 1,298 1,880
Contributions 3,106 2,483
Non-Monetary - Developer Assets contributed by Developers at Fair Value 3,217 2,022 *
TOTAL CAPITAL GRANTS . SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 9,530 9,718
*Comparative figures have been restated. Refer to Note 25 for details
page 12
Section 34
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 5. Employee Benefits
2017 2016
Notes $'000 $'000
Wages and Salaries 22,613 21 '111
Annual, Sick and Long Service Leave Entitlements 3,674 3,581
Superannuation 20 2,943 2,805
Councillors Remuneration 527 514
-·- -
29,757 28,011
Other Employee Related Expenses 1_.~~~ _1. §§6
31,212 29,567
Less: Capitalised Employee Expenses (2,363) (1 ,745)
TOTAL EMPLOYEE BENEFITS
:..
28,849 27,822
Councillor remuneration represents salary, and other allowances paid in respect of
carrying out their duties.
Additional information:
Total Employees at year end :
Administration Staff 255 248
Depot and Outdoors Staff 97 97
Total full time equivalent employees 352 345
Total Elected members 7 7
Note 6. Materials and Services
Administration Supplies and Consumables 1,300 926
Audit Services* 147 139
Communications and IT 618 616
Consultancy Services 688 243
Contract Services 20,140 18,540
Commission Paid 622 583
Donations and Prizes 3,442 3,976
Electricity 1,773 1,739
Fleet Operating Costs 1,481 1,221
Grants Paid to Community Organisations 848 810
Insurance 452 507
Legal Expenses 1,045 789
Operating Leases - Rentals 283 551
Software and Maintenance 844 873
Water and Sewerage Costs 876 862
Other Materials and Services 3,391 3,413
Less: Capitalised Internal Expenses (532) (117)
-
TOTAL MATERIALS AND SERVICES 37,418 35,671
-
*Total audit fees quoted by the Queensland Audit Office relating to the 2016-17 financial statements
are $110,000 (2016: $108,000)
page 13
Section 35
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 7. Depreciation and Amortisation
2017 2016
No tee.- $'000 $'000
Depreciation/Amortisation of Non Current Assets
Buildings 1,338 1,341
Plant and Equipment 919 712
Road and Bridge Network 9,985 9,648
Storm Water 2,104 2,042
Other Infrastructure Assets }.!.Q~2 2,940
Total Depreciation of Non Current Assets 11 17,3~8 16,683
Amortisation of Intangible Assets
Software 293 290
-
Total Amortisation of Intangible Assets .: 293 290
TOTAL DEPRECIATION AND AMORTISATION 17,671 16,973
Note 8. Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, all cash and cheques receipted but
not banked at the year end, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash which are subject to an insignificant risk
of changes in value, and bank overdrafts.
Cash at Bank and on Hand 148 391
Cash Equivalent Assets
-Deposits at Call 47,315 38,195
- Term Deposits 1~,000 14,9.9~.
TOTAL CASH ASSETS AND CASH EQUIVALENTS 65,463 52,586
Restricted Cash and Cash Equivalents
Council's Cash and Cash Equivalents are subject to a number of Internal and
External Restrictions that limit amounts available for discretionary of future use.
These include:
Externally imposed Expenditure Restrictions at the reporting date relate to the
following cash assets:
Unspent Government Grants and Subsidies 602 144
Unspent Levy Funds 6,378 5,006
Unspent Developer Contributions 8,470 5,465
Unspent Carbon Tax 502 969
l:J_n_spe!Jt Loan Monies 598
Total External Restrictions 16,550 11,584
page 14
Section 36
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 8. Cash and Cash Equivalents (continued)
2017 2016
$'000 $'000
Restricted Cash and Cash Equivalents (continued)
Internally imposed Expenditure Restrictions at the reporting date relate to the
following assets:
Future Asset Replacement 8,461 7,364
Natural Disaster Rehabilitation 2,343 2,271
Waste Management 3,512 3,616
Specific Purpose Recurrent 1,941 1,874
Total Internal Restrictions 16,257 15,125
Total Unspent Restricted Cash and Cash Equivalents 32,807 26,709
Cash and deposits at call are held in the Commonwealth Bank in a normal business cheque account.
On call accounts are also held with QTC. Deposits at call earned variable interest over varying terms at interest
rates of between 2.44% and 2.96%.
Investments
Term deposits in excess of three months are reported as investments, with deposits of less than three months
being reported as cash equivalents.
Note 9. Trade and Other Receivables
Receivables
Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed
purchase price I contract price. Settlement of these amounts is required within 30 days from invoice date.
The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be
able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance
costs. The amount of the impairment is the difference between the asset's carrying amount and the present value
of the estimated cash flows discounted at the effective interest rate.
All known bad debts were written-off at 30 June 2017. Subsequent recoveries of amounts previously written off in
the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is
recovered in a subsequent period it is recognised as revenue.
Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property
to recover outstanding rate debts, Council does not impair any rate receivables.
page 15
Section 37
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 9. Trade and Other Receivables (continued)
2017 2016
$'000 $'000
Current
Rateable Revenue and Utility Charges 4,431 4,337
Other Debtors 25 63
GST Recoverable 1,053 561
Accrued Revenue 2,415 2,172
Prepayments 382 457
Fees and Charges 1,59_3 982
TOTAL CURRENT TRADE AND OTHER RECEIVABLES 9,899 8,572
-
Non-Current
Loans and Advances to Associates _1_~.2.!8__ -
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES 49,218
Interest is charged on outstanding rates at a rate of 11% per annum. There is no
concentration of credit risk for rates and utility charges, fees and other debtors
receivable. All known bad debts were written-off at 30 June.
A new loan agreement for the subordinated debt was executed on the 21 June 2013.
The new interest only loan structure terminates on the 30 June 2033 with the interest
rate set by QTC annually. Applicable interest rate for 2017 was 5.33% (2016: 5.36%).
Note 10. Investment Property
Investment property is property held for the primary purpose of earning rentals and/or
capital appreciation.
Investment property is measured using the fair value model. This means all
investment property is initially recognised at cost (including transaction costs) and then
subsequently revalued annually at the balance date.
Gains or losses arising from changes in the fair value of investment property are
recognised as incomes or expenses respectively for the period in which they arise.
Investment property is not depreciated and is not tested for impairment.
Fair value at Beginning of Financial Year 4,150 3,831
Revaluation adjustment to the Income Account 255 319
TOTAL INVESTMENT PROPERTY 4,405 4,150
Operating expenses in respect of investment property are shown in note 6.
page 16
Section 38
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment
Recognition
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and accumulated impairment losses. Items of property, plant and equipment with a total value of less
than $5,000, $1,000 for computer equipment and $15,000 for Buildings, except for land and network assets (which
have a recognition threshold of $1) are treated as an expense in the year of acquisition. All other items of property,
plant and equipment are capitalised.
The classes of property, plant and equipment recognised by Council are reported in the table below.
Acquisition of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design
fees and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair
value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair
value is the price that would be received to sell the asset in an orderly transaction between market participants at
the measurement date.
Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life
of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major
component of an asset to maintain its service potential is capitalised.
Valuation
Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis,
at fair value, in accordance with AASB 116 Property, Plant & Equipment and AASB 13 Fair Value requirements.
Other plant and equipment and work in progress are measured at cost.
Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of
each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging
independent, professionally qualified valuers to determine the fair value for each class of property, plant and
equipment assets at least once every 3 years. This process involves the valuer physically sighting a representative
sample of Council assets across all asset classes and making their own assessments of the condition of the assets
at the date of inspection.
Council uses internal engineers to assess the condition and cost assumptions associated with all infrastructure
assets, the results of which are considered in combination with the relevant indices independently published for the
Sunshine Coast Region. Together these are used to form the basis of a management valuation for infrastructure
asset classes in each of the intervening years. With respect to the valuation of the land and improvements, and
buildings classes in the intervening years, management engage independent, professionally qualified valuers to
perform a "desktop" valuation. A desktop valuation involves management providing updated information to the
valuer regarding additions, deletions and changes in assumptions such as useful life, residual value and condition
rating. The valuer then determines suitable indices which are applied to each of these asset classes.
page 17
Section 39
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
Capital work in progress
The cost of property, plant and equipment being constructed by the Council includes the cost of purchased
services, materials, direct labour and an appropriate proportion of labour overheads.
Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment
assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable
asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management
believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an
asset is completed and commissioned ready for use.
Where assets have separately identifiable components that are subject to regular replacement, these components
are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally
assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated
over the remaining useful life of the asset to the Council.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter.
Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are
reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of
consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The
condition assessments performed as part of the annual valuation process for assets measured at depreciated
current replacement cost are used to estimate the useful lives of these assets at each reporting date. Road
formation has an unlimited life and is not subject to depreciation. Details of the range of estimated useful lives for
each class of asset are shown in the Table below.
page 18
Section 40
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
30 June 2017 Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water
Other Infrastructure
Total
Progress Equipment Network Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 8,879 - - 10,308 - - - 19,187
Opening Gross Balance - at Fair Value - 130,109 76,397 - 636,269 167,285 87,327 1,097,387
Opening Gross Balance as at 1 July 2016 (Restated) 8,879 130,109 76,397 10,308 636,269 167,285 87,327 1,116,574
Correction to Opening Balances 25 (1,246) - - - - - - (1,246)
Additions* 19,319 - 262 2,117 5,923 29 561 28,211
Contributed Assets - - - - 1,098 2,119 - 3,217
Disposals 5,10 - - - (341) - - - (341)
Write-offs 5,10 - - (128) - (2,845) (170) (101) (3,244)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 3,114 - - - - 3,114
Work in Progress Transfers (8,893) - - - - - - (8,893)
Internal Transfers to Other Asset Classes - - - - - - (599) (599)
Internal Transfers from Other Asset Classes - - - - 599 - - 599
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2017 18,059 - - 12,084 - - - 30,143
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2017 - 130,109 79,645 - 641,043 169,262 87,188 1,107,247
Total Gross Value of Property, Plant and Equipment as at 30 June 2017 18,059 130,109 79,645 12,084 641,043 169,262 87,188 1,137,390
Opening Accumulated Depreciation as at 1 July 2016 - - 17,189 1,638 106,929 51,682 30,447 207,885
Depreciation Provided in the Period 7 - - 1,338 919 9,985 2,104 3,032 17,378
Depreciation on Disposals 5,10 - - - (86) - - - (86)
Depreciation on Write-offs 5,10 - - (14) - (1,587) (35) (43) (1,679)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 739 - - - - 739
Internal Transfers to Other Asset Classes - - - - - - (136) (136)
Internal Transfers from Other Asset Classes - - - - 136 - - 136
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2017 - - 19,252 2,471 115,464 53,751 33,301 224,239
Consolidated Book Value as at 30 June 2017 18,059 130,109 60,393 9,613 525,579 115,511 53,887 913,151
Financial Statements 2015
Other Information
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals 881 2,261 10,490 1,174 943 15,749
page xx
Other Additions 202 812 14 1,726 33 759 3,546
Total Asset Additions - 202 1,693 2,275 12,216 1,207 1,702 19,295
page 19
Section 41
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
30 June 2016 (Restated) Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water
Other Infrastructure
Total
Progress Equipment Network Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 7,396 - - 8,354 - - - 15,750
Opening Gross Balance - at Fair Value - 119,514 75,985 - 621,126 161,968 82,922 1,061,515
Opening Gross Balance as at 1 July 2015 7,396 119,514 75,985 8,354 621,126 161,968 82,922 1,077,265
Correction to Opening Balances 25 - - (1,289) - - - (18) (1,307)
Additions* 28,949 3,780 20 2,207 16,912 4,020 436 56,324
Contributed Assets (Restated) ** - - - - 1,193 829 - 2,022
Disposals 5,10 - - - (758) - - - (758)
Write-offs 5,10 - - - - (2,107) - (131) (2,238)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - 6,815 1,783 - - - 4,134 12,732
Work in Progress Transfers (27,381) - - - - - - (27,381)
Adjustments and Other Transfers (85) - - - - - - (85)
Internal Transfers to Other Asset Classes - - (102) 505 (855) 468 (16) -
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2016 8,879 - - 10,308 - - - 19,187
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2016 - 130,109 76,397 - 636,269 167,285 87,327 1,097,387
Total Gross Value of Property, Plant and Equipment as at 30 June 2016 (Restated)** 8,879 130,109 76,397 10,308 636,269 167,285 87,327 1,116,574
Opening Accumulated Depreciation as at 1 July 2015 - - 15,602 835 98,527 49,594 25,630 190,188
Correction to Opening Balances 25 - - (177) - - - (17) (194)
Depreciation Expense 7 - - 1,341 712 9,648 2,042 2,940 16,683
Disposals 5,10 - - - (151) - - - (151)
Write-offs 5,10 - - - - (1,128) - (63) (1,191)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 448 - - - 2,101 2,549
Internal Transfers to Other Asset Classes - - (25) 242 (118) 46 (144) 1
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2016 - - 17,189 1,638 106,929 51,682 30,447 207,885
Consolidated Book Value as at 30 June 2016 (Restated) ** 8,879 130,109 59,208 8,670 529,340 115,603 56,880 908,689
Other Information
Financial Statements 2015
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals 1,484 - - 2,114 10,762 340 297 14,997
Other Additions - 3,780 20 94 6,150 3,680 138 13,862
page xx
Total Asset Additions 1,484 3,780 20 2,208 16,912 4,020 435 28,859
** Note previously recognised adjustments as disclosed in Note 25
page 20
Section 42
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements
(i) Recognised fair value measurements
Council measures and recognises the following assets at fair value on a recurring basis:
- Investment Property
- Land
- Buildings
- Road and Bridge Network
- Storm Water
- Other Infrastructure Assets
Council does not measure any liabilities at fair value on a recurring basis.
Council has assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the other
notes.
Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred.
The fair value of borrowings disclosed in Note 15 is provided by the Queensland Treasury Corporation {QTC) and
represents the market value to extinguish the debt at balance date. This information was provided by QTC and represents
the contractual undiscounted cash flows at balance date. Liquidity risk information on Council's borrowings is also
disclosed in Note 27.
The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to
their short-term nature (Level 2).
In accordance with AASB 13 Fair Value Measurements are categorised on the following basis:
- Level 1 - Fair value based on quoted prices in active markets for the asset or liability
- Level 2- Fair value based on inputs that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices).
- Level 3- Fair value based on unobservable inputs for the asset and liability.
The fair values of the assets are determined using valuation techniques which maximise the use of observable data,
where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an
asset are observable, the asset is included in level 2. If one or more of the significant inputs is not based on observable
market data, the asset is included in level 3. This is the case for Council infrastructure assets, which are of a specialist
nature for which there is no active market for similar or identical assets. These assets are valued using a combination of
observable and unobservable inputs.
The table below presents all items that are measured and recognised within the Statement of Financial Position at fair
value. In accordance with AASB 13, all fair value measurements are recurrent and categorised as either Level 2 or Level
3 fair value measurements. Council does not have any assets or liabilities measured at fair value which meet the criteria
for categorisation as Level 1.
page 21
Section 43
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
(1) The following table presents all assets and liabilities that have been measured and recognised at
fair values:
Fair Value
Measurement using:
Level2 Level3 Total
D Significant Significant
observable unobservable
inputs inputs
2017 $'000 $'000 $'000
Property, Plant and Equipment
-Land 68,769 61,340 130,109
-Buildings 60,393 60,393
- Road and Bridge Network 525,579 525,579
- Storm Water 5 115,511 115,511
- Other Infrastructure Assets 6 53,887 53,887
- Investment Property 4,405 4,405
Total Property, Plant and Equipment 73,174 816,710 889,884
2016
Property, Plant and Equipment
-Land 68,769 61,340 130,109
-Buildings 59,208 59,208
- Road and Bridge Network 30:06/1·~ 529,340 529,340
- Storm Water 115,603 115,603
-Other Infrastructure Assets 56,880 56,880
- Investment Property 4,150 4,150
Total Property, Plant and Equipment 72,919 822,371 895,290
(2) Transfers between Level1 and Level2 Fair Value Hierarchies
During the year, there were no transfers between Level 2 and Level 3 Fair Value hierarchies for recurring fair
value measurements.
Council's policy for determining transfers between Fair Value hierarchies is at the end of the reporting period.
page 22
Section 44
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
(3) Valuation techniques used to derive Level2 and Level 3 Fair Values
Where Council is unable to derive Fair Valuations using quoted market prices of identical assets
(ie. Level1 inputs) Council instead utilises a spread of both observable inputs (Level 2 inputs) and
unobservable inputs (Level 3 inputs).
The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:
Infrastructure, Property, Plant arid Equipment
Land (Level 2 and 3)
Land fair values were determined by independent valuer, AssetVal Pty Ltd effective 1 January 2014. Fair values have
been derived based on a combination of market approach and direct comparison by analysing land sales occurring over
the past year within the Noosa Shire Council area. A full comprehensive valuation is scheduled for the 2017-2018
financial year.
Where there was an active and liquid market as evidenced by sales transactions of similar property types, a market
approach by way of direct comparison or income methods can be utilised, and are accepted valuation methodologies
under AASB 13. If a market approach is adopted, the valuation is deemed to be a Level 2 input.
The direct comparison method which is considered.a Level 2 input on the fair value hierarchy, involves the analysis of
sales evidence and comparisons with the subject land taking into account matters such as area, location and other
general site characteristics. Direct Comparison approach was utilised in the assessment for all Council land assets,
however, the fair value measurement has been either a Level 2 or 3, depending on the assumptions as to:
- Whether the land is subject to restrictions as to use and/or sale;
- Whether there is no active market.
Land that is utilised for footpath or access restriction purposes, land that is a volumetric title, or due to its general
characteristics land that has no observable active market have been assessed as a Level 3.
There was no material movement in the fair value of land assets and subsequently no indexation was undertaken for land
for the period 1 July 2016 to 30 June 2017
page 23
Section 45
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Buildings (Level 3)
For the majority of Council's buildings, there is no active market due to the specialised nature of the assets and the
services they provide. The fair value of buildings were independently valued by registered valuers Australia Pacific
Valuers, effeclive 30 June 2015.
Due to the predominately specialised nature of local government buildings, the valuations have been undertaken using a
cost approach. This is deemed to be a level 3 input.
Under this approach the cost to replace the asset is calculated and then adjusted to take account of accumulated
depreciation. The valuer disaggregated the building into different components and for each component determined a
value based on the interrelationship between a range of factors. These include asset condition, legal and commercial
obsolescence and the determination of key depreciation related assumptions such as pattern of consumption and future
economic benefit.
Inputs to the valuation include the design and construction, average cost of construction, condition and consumption
score for each component. Where these are supported by observable evidence obtained via inspection and market
evidence they have been classified as a Level 2 inputs. The unobservable inputs (such as estimates pattern of
consumption and (based on the asset consumption score) its relationship to the assessed level of remaining service
potential of the depreciable amount, required extensive professional judgement and impacted significantly on the final
determination of fair value. As these inputs are significant to the valuation the overall valuation has been classified as
level3.
The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and
were then updated to take into account the experience and understanding of Noosa Shire Council's own engineers, asset
management and finance staff. The results of the valuation were further evaluated by confirmation against Noosa Shire
Council's own understanding of the assets and the level of remaining service potential.
Council applied an index rate of 4.0% to the value of Buildings for the period 1 July 2016 to 31 March 2017.
Other Infrastructure Assets (Level 3)
Other Infrastructure was last comprehensively valued as at 30 June 2016 by Aurecon Australia Pty Ltd.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
'Level 3' unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
Aurecon's cost database or the Rawlinson 2014 edition of the Australian Construction Handbook.
Other Infrastructure index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, assets are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 24
Section 46
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Infrastructure Assets (level 3)
Due to the specialised nature of Council's infrastructure assets and the services they provide, there is no active
measurable market. The fair value of all infrastructure assets is determined on the basis of replacement of a new asset or
modern equivalent.
Current Replacement Cost (CRC) is measured by reference to the lowest cost at which the gross economic benefits of
the asset could be obtained in the normal course of business. Where existing assets were over designed, had excess
capacity or where redundant an adjustment was made so that the resulting valuation reflected the cost of replacing the
existing economic benefits based on an efficient set of modern equivalent assets to achieve the required level of service
output within the Council's planning horizon.
Infrastructure assets are comprehensively revalued every three to five years, based on component unit rates developed in
line with asset renewal methods.
Specific Valuation Techniques used to value Council Infrastructure Assets comprise:
Road and Bridge Network - current replacement cost
Roads (Level 3)
Road and bridge infrastructure was comprehensively valued by independent valuer Aurecon Australia Pty Ltd as at 30
June 2014. The next comprehensive valuation is to be undertaken in the 2017 -18 financial year.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
'Level 3' unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
Aurecon's cost database or the Rawlinson 2014 edition of the Australian Construction Handbook.
Council uses 3 distinct location factors categorising its road infrastructure into urban, rural and commercial/industrial.
Roads are further categorised as sealed or unsealed and managed in segments. All road segments are then further
componeritised into the sub classes of assets that make up each segment, i.e. Road Surface, Road pavement- base,
Road pavement - sub-base, Road shoulder, Formation, Kerbs, footpaths etc. Each asset unit rate is determined on cost
to construct, material type and useful life to facilitate valuation and depreciation.
Roads and Bridges index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, roads are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 25
Section 47
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Bridges (Level 3)
A full valuation of bridges assets was undertaken by independent valuers, Aurecon Australia Pty Ltd effective 1 January
2014. All bridges, with exception to 3 major bridges, were valued based on unit rates developed according to varying
material types used for construction, the deck area, size and length. Construction estimates were determined on a similar
basis to roads. Significant bridge structures were individually assessed by Aurecon Australia Ply Ltd.
Roads and Bridges index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, bridges are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Stormwater (Level 3)
A comprehensive valuation of stormwater infrastructure was undertaken by independent valuers Aurecon Australia Pty
Ltd effective 30 June 2015. As there is a significant level of professional judgement used in determining the valuation due
to the level of unobservable data, the valuation of drainage assets has been determined as Level 3.
The fair value unit rates were determined using the prevailing market costs for supply and installation of similar assets or
their modern equivalent. The methodology for calculation of unit rates from first principles consists of breaking down each
asset into its cost components such as demolition, reinstatement, excavation, construction, delivery and installation. The
models used to determine the unit rates included internal selection of variables for asset size, depth, location and soil
type.
Stormwater index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and therefore
the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation. stormwater assets are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Investment Property
Investment Property was valued at fair value by AEC Group Limited, an independent professionally qualified vauation
firm, as at 30 June 2017.
A market-based approach was applied to determine the fair value of investment property. The two calculation
methodologie.s underpinning this approach by the valuation firm are the capitalisation rate valuation approach and the
discounted cashflow valuation approach.
page 26
Section 48
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 13. Intangible Assets
2017 2016
Notes $'000 $'000
Intangible Assets are as follows;
Com_puter Software
Opening Gross Carrying Value 2,836 2,632
Acquired at Cost 204
Disposals - ---····-(2)_
Closing Carrying Value . -~.8~1 ·- - ~~~~~.
Work In Progress .1.• ?17 340
Closing Gross Carrying Value 4J~~~- - ·~,1~6-
Opening Accumulated Amortisation Balance (562) (272)
Amortisation in the period 7 (f.93) _ (290)
Closing Accumulated Amortisation Balance .J~~~J _(~6_?).
Net Book Value 3,497 2,614
TOTAL INTANGIBLE ASSETS- NET BOOK VALUE 3,497 2,614
Software assets have a finite life estimated at 10 years .
Straight line amortisation has been used with no residual value.
Note 14. Trade and Other Payables
Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed
purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are
unsecured and are generally settled on 30 day terms.
Liabilities- Employee Benefits
Employee related accruals comprise annual leave, long service leave and accrued salaries and wages in
respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are
assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the
liability is treated as a current liability. Otherwise the liability is treated as non-current.
Annual leave
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 future wage and salary levels and related employee on-costs,
and are di~counted 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.
page 27
Section 49
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 14. Trade and Other Payables (continued)
2017 2016
$'000 $'000
Current
ATO - Net GST Payable 106 85
Accruals 3,688 2,940
Creditors 4,498 1,720
Employee Related Accruals 1,228 960
Annual Leave 2,207 2,094
Other Entitlements 91 89
TOTAL CURRENT TRADE AND OTHER PAYABLES 11,818 7,888
Note 15. Borrowings
Loans payable are measured at amortised cost using the effective interest rate
method. The effective interest rate is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument.
Borrowing costs, which includes interest calculated using the effective interest method
and administration fees, are expensed in the period in which they arise. Costs that are
not settled in the period in which they arise are added to the carrying amount of the
borrowing.
All borrowing costs are expensed in the period in which they are incurred.
Borrowings are classified as current liabilities unless Council has an unconditional right
to defer settlement of the liability for at least 12 months after the balance date.
Current
Loans - Queensland Treasury Corporation 3,745 2,932
TOTAL CURRENT BORROWINGS 3,745 2,932
Non-current
Loans - Queensland Treasury Corporation 34,291 35,186
TOTAL NON-CURRENT BORROWINGS 34,291 35,186
page 28
The text continues on section 50.