Annual Report 2015-16

Financial Statements 2016

 Noosa Shire Council

 Notes to the Financial Statements
 for the year ended 30 June 2016
 Note 12. Fair Value Measurements (continued)

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.

Asset Val Pty Ltd were engaged to undertake an indexation assessment across all non current asset categories with the
exception of Other Infrastructure, as at 30 June 2016. Stormwater index rates for the period 30 June 2015 to 30 June
2016 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.

Sensitivity Analysis - Roads, Bridge and Stormwater Network

As detailed above Council's road, bridge and stormwater network has been valued using written down current
replacement cost. This method utilises a number of inputs that require judgement and are therefore classed as
unobservable. While these judgements are made with the greatest care, and based upon years of experience, different
judgements could result in a different valuation. The table below summarises the effect that changes in the most
significant unobservable inputs would have on the valuation:

Significant Unobservable                                                      Relationship of Unobservable Inputs
                                             Range of Inputs                                   ;
Input                                                                                     to Fair Value
                              |                                                                                      |
a                                                                              —          $e
Number of labour hours                 5-100hrs/linear metre or sqm           Tie
5	1	1	1	33	10	1692	2607	105	36	4	igen
5	1	1	1	33	11	1808	2607	50	29	44	Bie
5	1	1	1	33	12	1872	2603	104	70	32	labeur
5	1	1	1	33	13	1988	2607	102	34	25	belie,
5	1	1	1	33	14	2104	2608	52	28	94	the
5	1	1	1	33	15	2171	2608	103	36	27	higher
4	1	1	1	34	0	1583	2634	468	67	-1	
5	1	1	1	34	1	1583	2634	2	67	91	|
5	1	1	1	34	2	1834	2655	51	29	96	the
5	1	1	1	34	3	1898	2654	53	30	95	fair
5	1	1	1	34	4	1961	2655	90	29	96	value
4	1	1	1	35	0	250	2716	1998	84	-1	
5	1	1	1	35	1	250	2716	146	62	96	Standard
5	1	1	1	35	2	417	2721	131	29	96	material
5	1	1	1	35	3	562	2729	102	29	96	usage
5	1	1	1	35	4	778	2735	2	65	92	|
5	1	1	1	35	5	804	2745	110	30	96	Varies
5	1	1	1	35	6	927	2745	183	38	96	depending
5	1	1	1	35	7	1126	2753	83	30	96	upon
5	1	1	1	35	8	1224	2745	53	31	96	the
5	1	1	1	35	9	1290	2747	73	36	96	type
5	1	1	1	35	10	1377	2746	33	30	94	of
5	1	1	1	35	11	1422	2746	137	30	96	material
5	1	1	1	35	12	1639	2723	64	29	96	The
5	1	1	1	35	13	1718	2720	103	61	96	higher
5	1	1	1	35	14	1832	2724	49	29	96	the
5	1	1	1	35	15	1897	2732	100	45	96	usage
5	1	1	1	35	16	2010	2726	172	34	96	quantities,
5	1	1	1	35	17	2197	2725	51	29	96	the
4	1	1	1	36	0	250	2765	1860	51	-1	
5	1	1	1	36	1	250	2765	161	44	96	quantities
5	1	1	1	36	2	778	2801	2	15	61	|
5	1	1	1	36	3	1778	2772	104	36	96	higher
5	1	1	1	36	4	1892	2772	51	29	97	the
5	1	1	1	36	5	1955	2771	54	30	96	fair
5	1	1	1	36	6	2020	2772	90	29	96	value
4	1	1	1	37	0	343	2827	1947	75	-1	
5	1	1	1	37	1	343	2885	23	5	0	a
5	1	1	1	37	2	468	2885	4	5	13	:
5	1	1	1	37	3	664	2886	4	5	32	;
5	1	1	1	37	4	841	2861	44	30	96	As
5	1	1	1	37	5	899	2861	155	37	96	specified
5	1	1	1	37	6	1069	2861	105	30	93	above
5	1	1	1	37	7	1188	2878	11	4	93	-
5	1	1	1	37	8	1212	2861	114	31	82	OH/OM
5	1	1	1	37	9	1341	2861	137	39	96	(lowest)
5	1	1	1	37	10	1492	2864	30	28	96	to
5	1	1	1	37	11	1583	2827	2	66	94	|
5	1	1	1	37	12	1598	2864	63	29	96	The
5	1	1	1	37	13	1675	2864	105	36	95	higher
5	1	1	1	37	14	1791	2864	51	30	95	the
5	1	1	1	37	15	1855	2865	150	29	96	condition
5	1	1	1	37	16	2019	2865	102	37	96	rating,
5	1	1	1	37	17	2136	2865	52	29	96	the
5	1	1	1	37	18	2201	2865	89	29	96	lower
4	1	1	1	38	0	251	2884	1803	98	-1	
5	1	1	1	38	1	251	2884	157	30	95	Condition
5	1	1	1	38	2	423	2887	90	34	96	rating
5	1	1	1	38	3	528	2885	113	36	96	(useful
5	1	1	1	38	4	656	2885	58	37	96	life)
5	1	1	1	38	5	1041	2911	114	30	50	6H/6M
5	1	1	1	38	6	1170	2911	153	38	95	(highest)
5	1	1	1	38	7	1583	2895	2	87	91	|
5	1	1	1	38	8	1829	2912	51	29	38	lec
5	1	1	1	38	9	1892	2912	162	29	0	Shuster
4	1	1	1	39	0	252	2984	2051	80	-1	
5	1	1	1	39	1	252	3025	177	37	96	Remaining
5	1	1	1	39	2	444	3025	98	29	96	useful
5	1	1	1	39	3	557	3025	46	30	96	life
5	1	1	1	39	4	778	2987	2	67	90	|
5	1	1	1	39	5	1080	3026	98	30	96	5-100
5	1	1	1	39	6	1191	3034	94	30	96	years
5	1	1	1	39	7	1608	3004	63	29	96	The
5	1	1	1	39	8	1685	3000	100	62	96	longer
5	1	1	1	39	9	1793	3005	59	53	96	the
5	1	1	1	39	10	1866	3001	162	61	96	remaining
5	1	1	1	39	11	2043	3005	100	29	96	useful
5	1	1	1	39	12	2158	3005	55	34	96	life,
5	1	1	1	39	13	2227	3005	51	29	96	the
5	1	1	1	39	14	2298	2984	5	50	62	|
4	1	1	1	40	0	1772	3036	530	64	-1	
5	1	1	1	40	1	1772	3053	105	36	96	higher
5	1	1	1	40	2	1887	3053	51	29	96	the
5	1	1	1	40	3	1950	3053	53	29	96	fair
5	1	1	1	40	4	2014	3053	99	29	96	value.
5	1	1	1	40	5	2300	3036	2	64	93	|
4	1	1	1	41	0	2086	3294	115	31	-1	
5	1	1	1	41	1	2086	3300	70	25	96	page
5	1	1	1	41	2	2168	3294	33	25	96	28