Adopted by Council on 8 November 2016 ISSN Number: 2207-0362 (Online) City of Mitcham Record Number: 16.86575 © City of Mitcham Civic Centre 131 Belair Road TORRENS PARK SA 5062 Postal address: PO Box 21 Mitcham Shopping Centre Torrens Park SA 5062 Telephone: 08 8372 8888 Facsimile: 08 8372 8101 Internet:
www.mitchamcouncil.sa.gov.au
Email:
mitcham@mitchamcouncil.sa.gov.au
ACKNOWLEDGEMENT TO COUNTRY We acknowledge the Kaurna people as the traditional custodians and caretakers of the land that includes much of this City, known as Tarndanyannga country which means ‘the place of the red kangaroo dreaming’. The Kaurna people’s rich cultural heritage and spiritual beliefs still connect their people with this land and we welcome a new relationship with the living members of their community today.
CONTENTS Message from the Mayor and Chief Executive Officer
3
Our Elected Members
4
City Profile
6
Our Vision
8
Performance against Council’s Strategic Goals and Objectives
9
Accessible City Goal
10
Liveable City Goal
14
Inclusive and Capable Community Goal
18
Healthy Environment Goal
22
Enterprising City Goal
26
Excellence in Government Goal
30
Our Leadership and People
34
Our Governance
36
Representation 36 Decision Making Structure at the City of Mitcham
37
Council and Council Meetings
38
Committees of Council
39
Council Subsidiaries
41
Delegations to Chief Executive Officer
41
Council Briefings
41
Members’ Allowances
43
Elected Member Training and Development
45
Freedom of Information
45
Confidential Provisions
46
Section 270 Internal Reviews of Decisions
48
National Competition Policy
49
Community Land and Council Facilities
49
Documents Required to be Maintained by Council
50
Annual Financial Statements
51
Appendices 78 Centennial Park Cemetery 2015/16 Annual Report East Waste 2015/16 Annual Report
79 143
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 1
PAGE 2 CITY OF MITCHAM ANNUAL REPORT 2015/16
MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE OFFICER WELCOME TO THE CITY OF MITCHAM ANNUAL REPORT 2015/16. We have continued to strengthen our financial position to ensure Council can continue to maintain and improve the City and services to residents. An underlying operational surplus of $0.62 million was achieved in 2015/16. Council is focussed on listening to our customers and delivering services that meet the needs of residents. As part of this in 2015/16 we successfully delivered a capital renewal program of $15.11 million with the major expenditure being on roads, footpaths and stormwater infrastructure throughout the City. An additional $3.4 million was spent on new infrastructure including construction of 11 new footpaths including Beaconsfield Road, Eden Hills; Tallerook Road, Hawthorndene; Grandview Drive, Panorama; and Edgecumbe Parade, Blackwood. During the financial year Council, in partnership with the four other catchment Councils, finalised a Stormwater Masterplan for Brownhill and Keswick Creeks. This has been a long and difficult project involving significant community discussion. Thank you to the large number of residents who have given their time to achieve a workable and effective plan. Works have already begun, the focus now turns to funding and implementing the entire masterplan. Council was also very successful in working with the City of Marion to lobby the State and Federal Governments to improve the plan for the South Road Darlington upgrade. This lobbying resulted in improvements to access for local residents and a rail connection across South Road. A highly successful multicultural food and music community event incorporating a citizenship ceremony was trialled in March with over 600 people attending.
GLENN SPEAR MAYOR
MATT PEARS CHIEF EXECUTIVE OFFICER
Carols by the Creek at the Soldiers Memorial Gardens, Hawthorn, continued to be one of the top Christmas Carol events in Adelaide with in excess of 2,500 people in attendance in December 2015.
which will now be passed to residents through the reduced cost of additional recycling and green organics bins in 2016/17. Council also received a Keep Australia Beautiful grant to enable the installation of recycling bins in Apex Park, Hawthorndene and AA Bailey Reserve, Clarence Gardens.
Youth Week events attracted approximately 400 young participants and 250 spectators to six different events with Youth Fest at Karinya Reserve attracting over 300 young people. Our libraries continued to be some of the busiest places in the City of Mitcham with an average of 6,000 people visiting them each week. A range of events were delivered by the library team, attended by over 22,000 members of our community. The Mitcham Library Service was one of the first in the State to achieve eSmart accreditation - an initiative of the Alannah and Madeline Foundation, aimed at improving cyber safety, increasing digital literacy and reducing cyber bullying across Australia. While Council is far more than roads, rates and rubbish Council’s expenditure on waste management was considerable at $5.28 million. Our Waste Team continued to provide great service to the community by not only collecting approximately 24,000 bins a week but building relationships with many of the residents, moving and returning bins for those who cannot do so themselves and keeping an eye open for and reporting anything unusual in the area. A new recycling contract resulting in savings
We have continued to work on improving the appearance of our streetscapes and reserves without increasing costs. We have created work flexible teams and increased our efficiency by focussing on planned rather than reactive maintenance. Reducing the risk of bushfire in our hills suburbs is always a priority with Council spending over $0.75 million on bushfire prevention strategies including reducing the fire load on Council verges, between houses and woodland reserves and providing fire breaks while Council’s Fire Prevention Officer has worked with the community to ensure reduction of fuel load on private land and to raise awareness and provide bushfire prevention information to residents living in bushfire prone areas. Thank you to our 355 volunteers who contributed to the community including caring for community gardens, researching local history, driving a community bus, serving lunch to aged residents and more. Your commitment to your fellow residents, neighbours and the community of Mitcham is greatly valued.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 3
OUR ELECTED MEMBERS
MAYOR GLENN SPEAR
MAYOR Mayor Glenn Spear Mobile: Email:
DAVID MUNRO
YVONNE TODD
0438 221 762 gspear@mitchamcouncil.sa.gov.au
ADRIANA CHRISTOPOULOS
ANDREW TILLEY
BABBAGE WARD COUNCILLORS
BOORMAN WARD COUNCILLORS
David Munro
Adriana Christopoulos
Mobile: Email:
0403 161 462 dmunro@mitchamcouncil.sa.gov.au
Yvonne Todd Mobile: Email:
Telephone: 8372 8888 Email: achristopoulos@mitchamcouncil.sa.gov.au Andrew Tilley
0418 891 097 ytodd@mitchamcouncil.sa.gov.au
NICK GREER
KAREN HOCKLEY
Mobile: 0411 158 882 Telephone: 8272 9405 Email: atilley@mitchamcouncil.sa.gov.au
LINDY TAEUBER
STEPHEN FISHER
ADRIAN ROSEVEAR
CRAIGBURN WARD COUNCILLORS
GAULT WARD COUNCILLORS
Nick Greer
Stephen Fisher
Telephone: 8372 8888 Email: ngreer@mitchamcouncil.sa.gov.au
Mobile: Email:
Karen Hockley
Adrian Rosevear
Mobile: 0423 919 080 Email: khockley@mitchamcouncil.sa.gov.au
Mobile: Email:
Lindy Taeuber Mobile: Email:
0420 372 566 ltaeuber@mitchamcouncil.sa.gov.au
PAGE 4 CITY OF MITCHAM ANNUAL REPORT 2015/16
0407 973 321 sfisher@mitchamcouncil.sa.gov.au
0417 741 650 arosevear@mitchamcouncil.sa.gov.au
Hawthorn Cumberland Park Clarence Westbourne Gardens Park
N RTO
OVE Melrose Park
Daw Park
Pasadena
Netherby
T AUL
G
Colonel Light Gardens
N
Springfield
Leawood Gardens
MA R O BO
Lower Torrens Mitcham Park
Clapham
Panorama
Urrbrae
Kingswood
Brownhill Creek
Mitcham
Belair
Lynton
AGE B B BA
ARK P E H
Crafers West
T
St Marys Glenalta Eden Hills
RN
BU RAIG
Bedford Park
C
Blackwood
Bellevue Heights
Craigburn Farm
NICHOLAS ECONOMOS
Hawthorndene
JOHN SANDERSON
Upper Sturt
Coromandel Valley
MARK WARD
TIM HEIN
OVERTON WARD COUNCILLORS
THE PARK WARD COUNCILLORS
Nicholas Economos
Mark Ward
Mobile: Email:
Cr Mark Ward resigned from Council on 24 May 2016.
0411 659 669 neconomos@mitchamcouncil.sa.gov.au
John Sanderson Mobile: 0402 517 945 Telephone: 8277 1884 Email: jsanderson@mitchamcouncil.sa.gov.au
Tim Hein Mobile: Email:
0403 080 080 thein@mitchamcouncil.sa.gov.au
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 5
CITY PROFILE
MITCHAM IS A THRIVING CITY, VALUED FOR ITS PROXIMITY TO THE CITY OF ADELAIDE, THE HILLS AND THE SEA. OUR CITY IS KNOWN FOR ITS AVENUES OF STREET TREES, ITS BEAUTIFUL PARKS, RESERVES AND GARDENS, ITS HISTORIC HOMES AND UNIQUE HISTORICAL AREAS AND ITS MAGNIFICENT VIEWS FROM THE HILLS OVER THE CITY.
Proclaimed in May 1853 under the District Councils Act 1852, the City of Mitcham is one of the oldest councils in South Australia taking its name from Mitcham Village which was settled in 1840 on the banks of Brown Hill Creek. Today there are over 66,000 people living in Mitcham and approximately 5,000 registered businesses operating in our local council area generating over 28,000 local jobs and $3.05 billion in Gross Regional Product. The City of Mitcham comprises an area of 75.7 square kilometres extends into the beautiful Mitcham hills, stretching from Cross Road to the north to the Sturt River in the south and from Mount Barker Road in the east to South Road in the west. Our suburbs include our State Heritage listed garden suburb, Colonel Light Gardens, which provides an excellent
PAGE 6 CITY OF MITCHAM ANNUAL REPORT 2015/16
example of 1920s town planning and historic Belair, a unique suburb surrounded on three sides by parks including South Australia’s oldest park Belair National Park. We also have Springfield, one of Adelaide’s most prestigious suburbs as well as a new housing development at Craigburn Farm. Our City has a vibrant education sector, home to over 65 high quality educational institutions including kindergartens, schools, colleges and universities such as the Waite Institute and Flinders University with many local and international students living locally. The majority of properties located in Mitcham are residential with most commercial premises located along or near Belair Road, Goodwood Road, South Road and Main Road (Blackwood and Belair). Most industrial premises are
27% SOUTH AUSTRALIAN AVERAGE
CITY OF MITCHAM
18%
34% SOUTH AUSTRALIAN AVERAGE
37% CITY OF MITCHAM
$1044
SOUTH AUSTRALIAN AVERAGE
$1387 CITY OF MITCHAM
KEY COUNCIL LOCATIONS HOUSEHOLDS WITH A MORTGAGE
HOUSEHOLDS RENTING
CIVIC CENTRE 131 Belair Road Torrens Park
MITCHAM LIBRARY 154 Belair Road Hawthorn GREATER ADELAIDE AVERAGE
13% CITY OF MITCHAM
16%
SOUTH AUSTRALIAN AVERAGE
17%
31% CITY OF MITCHAM
17.7%
GREATER ADELAIDE AVERAGE
24.3% CITY OF MITCHAM
CITY OF MITCHAM
SOUTH AUSTRALIAN AVERAGE
41 39
MEDIAN WEEKLY HOUSEHOLD INCOME
BLACKWOOD LIBRARY 215 Main Road Blackwood
BLACKWOOD COMMUNITY CENTRE 4 Young Street Blackwood
CUMBERLAND PARK COMMUNITY CENTRE MEDIAN AGE
POPULATION WHO VOLUNTEER
located along the western boundary immediately adjoining South Road. Our dwellings are over 26,000 across 33 suburbs all of which have their own particular style and community spirit. From the leafy backdrop of the hills environment, to the foothills homes which share magnificent panoramic views of Adelaide and the plains, the variety and uniqueness of the area is obvious. Mitcham boasts a diverse range of unique natural habitats, specimen trees and native vegetation that form part of a significant green corridor across the western slopes of the Mount Lofty Ranges. The hills contain one of the largest remnant stands of ‘endangered’ Grey Box Grassy Woodland (Eucalyptus microcarpa) in South Australia and are the home of many threatened native
POPULATION WITH BACHELOR OR HIGHER DEGREE
SPEAK A LANGUAGE OTHER THAN ENGLISH AT HOME
plants and animals. Preserving our natural landscape will be an important legacy. Mitcham is in the catchment area for both Brown Hill Creek and the Sturt River and collects significant volumes of stormwater from the Adelaide foothills before discharging into Gulf St Vincent. The City is also well served by many tourist attractions including Carrick Hill Estate, Belair National Park, Brown Hill Creek Reserve, Waite Arboretum, Wittunga Botanic Garden, Sturt River Linear Trail, reserves and numerous walking trails through the historic Mitcham Precinct, St Marys, Lower Mitcham, Brown Hill Creek and Colonel Light Gardens as well as a network of shared use trails.
388-390 Goodwood Road Cumberland Park
HAWTHORN COMMUNITY CENTRE 5 Frimley Grove Hawthorn
MITCHAM COMMUNITY CENTRE Belair Road Lower Mitcham
MITCHAM CULTURAL VILLAGE 103 Princes Road Mitcham
RICHMOND ROAD HALL Corner Richmond and Goodwood Roads Westbourne Park
PENANG HALL 45a Penang Avenue Colonel Light Gardens
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 7
OUR VISION A HEALTHY, INCLUSIVE AND PROSPEROUS COMMUNITY, LIVING AND WORKING IN HARMONY WITH THE ENVIRONMENT. TO BE ACHIEVED UNDER THE GOALS OF: • ACCESSIBLE CITY • LIVEABLE CITY PAGE 8 CITY OF MITCHAM ANNUAL REPORT 2015/16
• INCLUSIVE AND CAPABLE COMMUNITY • HEALTHY ENVIRONMENT
• ENTERPRISING CITY • EXCELLENCE IN GOVERNMENT
PERFORMANCE AGAINST COUNCIL’S STRATEGIC GOALS AND OBJECTIVES Overall Council delivered 94.7% of its Annual Business Plan initiatives for 2015/16. Council’s focus this year was operational efficiency and effectiveness to move into a strong financial position and achieve an operational surplus while at the same
time improving our infrastructure assets and providing a safe public realm. Details of this year’s performance for these areas of focus against Council’s strategic goals and objectives are provided below.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 9
ACCESSIBLE CITY STREETS, OPEN SPACES, COMMUNITY BUILDINGS AND FACILITIES WILL BE ACCESSIBLE, CONNECTED AND PEOPLE FRIENDLY.
PAGE 10 CITY OF MITCHAM ANNUAL REPORT 2015/16
ACCESSIBLE CITY GOAL COUNCIL’S FOCUS FOR AN ACCESSIBLE CITY HAS BEEN:
OBJECTIVE 1. TRANSPORT (WE CAN MOVE AROUND THE CITY) AN INTEGRATED AND EFFICIENT TRANSPORT SYSTEM THAT ENCOURAGES SAFE TRAVEL BY PUBLIC TRANSPORT, CYCLING AND WALKING. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • Development of the Integrated Transport Plan incorporating:
• New footpath construction program deferred from 2014/15 was completed.
• Darlington Upgrade Project,
• Sturt Linear Park project is subject to a review of engineering designs and further land acquisition now due for completion during 2016/17 financial year.
• Rugby Street bike way, and the
ADDITIONAL ACHIEVEMENTS
• Hills Plains Link
• Council acquired additional properties for the Sturt Linear Park and Minno Creek Linear Park.
• the Integrated Bike Plan with a focus on bike and commuter links tied to city wide projects,
commenced and is due for completion during 2016/17.
OBJECTIVE 2. CONNECTED COMMUNITY PLACES (WE HAVE PLACES TO MEET) HIGH QUALITY, WELL SERVICED AND ACCESSIBLE PUBLIC PLACES AND COMMUNITY FACILITIES WHERE PEOPLE CAN MEET, LEARN AND CONNECT WITH ONE ANOTHER. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • 87.5% of Council’s building maintenance requests were assessed and prioritised within 24 hour of receipt. • 100% of contract disputes were settled within 15 hours of notification.
• Community Centre utilisation of available hours continues to increase as more programs and businesses use the centres with an average weekly utilisation of 32.6 hour per week exceeded the target of 25 hours per week. • Engagement with sporting clubs greatly improved through meetings with 31 clubs and 41 attending Council planning and training sessions exceeding the target of 24 engagements for the year.
• Community participation in Library events and activities ran well in excess of targets with 23,957 people participating in activities, in excess of the 20,000 target, and events operating above capacity at 107% with long waiting lists, in particular, for children’s events. • 23,211 e-audio and e-books were downloaded and well exceeded the target of 16,000.
Participants in Library activities
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 11
ACCESSIBLE CITY GOAL OBJECTIVE 3. OPEN SPACE AND RECREATION FACILITIES (WE HAVE PLACES TO RELAX AND PLAY) OPEN SPACE, PARKS AND GARDENS AND SPORTING AND RECREATIONAL FACILITIES THAT PROVIDE OPPORTUNITIES FOR RELAXATION, LEISURE, PHYSICAL ACTIVITY AND PLAY. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• 100% of parks and gardens maintenance requests were assesed and prioritised within 10 business days.
• The playground replacement at Strathcona Reserve was completed.
• 100% of tree related community requests for action were assessed and prioritised in accord with Council's tree risk matrix. • Independent validation of Council’s verification and evaluation of its open space assets was completed. • Avenue Road Skate Park additions were constructed. • A Regional Play Space report was prepared for submission to Council in early 2016/17 financial year. • A new children’s playground at Kinedana Reserve, Eden Hills was designed and delivered for installation early in 2016/17 financial year. • Stage 1 of the Randell Park shared use trail was implemented. • A Sport Facilities Strategy and Plan was prepared for Council endorsement and community consultation early in the 2016/17 financial year.
PAGE 12 CITY OF MITCHAM ANNUAL REPORT 2015/16
• The junior playground at Blackwood Hill Reserve was replaced. • Fitness equipment was installed at Mortlock Park. • CC Hood Reserve walking path was completed together with additional earthworks to redirect stormwater away from neighbouring properties. • CC Hood Reserve Dedicated Dog Park was enhanced with upgraded benches for improved safety, water facilities, extended grassed areas and general improvements to dog equipment. • Lighting renewal at Bailey Soccer pitch was completed. • Fencing renewal around St Marys Park was completed. • Fencing renewal at the Balham Reserve tennis courts was completed.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 13
LIVEABLE CITY A WELL-DESIGNED AND SAFE CITY RESPONSIVE TO LIFESTYLE, HERITAGE, ENVIRONMENT AND LANDSCAPE.
PAGE 14 CITY OF MITCHAM ANNUAL REPORT 2015/16
LIVEABLE CITY GOAL COUNCIL’S FOCUS FOR A LIVEABLE CITY HAS BEEN:
OBJECTIVE 4. CITY CHARACTER AND DESIGN (WE LOOK AND FEEL LIKE MITCHAM) A STRONG SENSE OF PLACE (LOCAL IDENTITIES) WITH VIBRANT VILLAGE CENTRES AND DEVELOPMENT THAT RESPECTS LOCAL CHARACTER, BUILT FORM, THE ENVIRONMENT AND HERITAGE. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • 96.5% of complying development applications were processed within two weeks of submission. This was less than the target of 100% due to third party delays specifically relating to land divisions.
• The Heritage Grant Scheme was reinstated for the 2015/16 financial year and all allocated funds were granted to property owners to assist them in the conservation and restoration of their heritage listed or heritage area properties.
• 83.25% of consent, category 1 development applications were processed under delegated authority within the legislative 12 week timeframe.
complying development applications processed within two weeks
OBJECTIVE 5. GREEN STREETSCAPES (WE HAVE STREET APPEAL) FUNCTIONAL STREETSCAPES THAT ENHANCE AMENITY AND ARE SENSITIVE TO THE BUILT FORM, LANDSCAPE AND LOCAL ENVIRONMENTAL CONDITIONS. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• 100% of Council’s tree planting program was completed on schedule with a loss of new trees of only 3.75% being less than the 5% tolerance.
• The Tree Strategy was developed, put out to public consultation and subsequently adopted by Council.
• The original target to plant 1,000 street trees was amended and Council planted 850 street trees with an additional 300 trees being planted to landscape rain gardens. • Development of the grassed area in front of the Telstra Telephone Exchange site at Main Road, Blackwood into a pocket park did not progress due to lack of support from Telstra.
90,000 ROADSIDE AND URBAN TREES
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 15
LIVEABLE CITY GOAL OBJECTIVE 6. HOUSING CHOICES (WE HAVE GOOD PLACES TO LIVE) A GREATER CHOICE OF HOUSING IN LOCATIONS CLOSE TO PUBLIC TRANSPORT, PARKS, LOCAL SHOPS AND EDUCATIONAL INSTITUTIONS BUSINESS PLAN MEASURES • A busy year for our planning department with 1,441 residential developments approved across the City. The types of developments approved provide for a cross-section of dwelling types and densities, supporting a range of housing choices with a focus on infill and protecting our existing character and local heritage. Supporting a diverse choice of housing across the City of Mitcham is expected to provide opportunities for population growth moving into the future.
• In the 2015/16 financial year, several major residential developments were approved and construction is now underway. The kinds of developments that have been approved include more affordable residential developments that support an ageing population, and new dwellings for families in the southern areas of the City of Mitcham. Examples include aged care and retirement developments by Resthaven and at Brenchley Grove, and continued greenfield development in Blackwood Park and Craigburn Farm.
OBJECTIVE 7. SAFE PUBLIC REALM (WE ARE A SAFE PLACE TO LIVE AND VISIT) PEOPLE FEEL SAFE IN THEIR HOMES, ON LOCAL STREETS, IN PARKS AND WHEN DINING AND TRAVELLING THROUGHOUT THE CITY. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • 75% of the 1,200 targeted high risk bushfire properties audited were compliant with bushfire prevention legislation. Follow up with noncomplying owners will be undertaken early in the 2016/17 financial year to ensure all properties are compliant prior to the start of the next fire danger season. • 92.5% of Environmental Health premises such as cooling towers, Legionella control, public access swimming pools/spas, hoarding and squalor, SA Public Health Act matters, etc, including complaints complied with required standards. There were no major non-compliances identified during the 2015/16 financial year. • Of the 20% of cat and dog owners audited for pet registrations there was a 100% compliance rate.
PAGE 16 CITY OF MITCHAM ANNUAL REPORT 2015/16
• 99% of food businesses demonstrated high compliance with regulatory standards during the 2015/16 financial year. One food business received a Food Act Notice in this period and responded positively to the requirements of the Notice. • Council administered 5,931 vaccines through community, school and Council clinics exceeding the annual target of 4,200. • On average 50% of Class 1a developments were inspected during the year in accord with Council’s Inspection Policy. While this percentage was less that the desired target of 66% the trend is one of significant improvement. A full complement of staff, process improvements and greater use of technology resulted in an 86% inspection rate in the final quarter. • Regular and ongoing patrols around schools, hospitals and shopping precincts have resulted in a 15.75%
reduction in parking complaints exceeding the target of a 5% reduction. • 100% of new pool safety barriers were inspected within two weeks of notice of completion exceeding the target of an 80% inspection rate. • 100% of firebreaks on Council reserves were brush cut or slashed before the fire danger season. • 100% of all reported graffiti was removed with 48 hours. • 100% of all reported urgent pothole repairs were undertaken within two days. • Council’s Volunteer Graffiti Removal Program was implemented. • 100% of potholes were repaired in accord with the maintenance program and risk factors. • The annual street sweeping program ran to schedule throughout the year with streets being swept on a five weekly cycle.
5,931 VACCINES ADMINISTERED • The Public Street Lighting Upgrade project to investigate and implement new or upgraded public lighting projects (including funding for a substantial backlog of work since 2012/13 due to lack of budget funding) was completed. • LED Lighting Pilot Trial was conducted for Council operations in Urrbrae, the main reserve, Craigburn Farm. • Installation of shade over high use currently unshaded playground areas progressed for Strathcona and Kinedana playgrounds. Awaiting final approval prior to installation during 2016/17 financial year. • Safety fencing at Sleeps Hill Reserve was installed.
ADDITIONAL ACHIEVEMENTS • Council continued to work with the City of Unley to deliver outcomes from the Action Plan of the “Living Well” Regional Public Health and Wellbeing Plan for the Cities of Mitcham and Unley. • Improved Bushfire Management throughout Council led to less 105F Notices being issued and more time for increased inspections of vacant blocks in preparation for 2015/16 bushfire season. • A new Building Fire Safety Committee was established in August 2015 by the Building Services team. A schedule of inspections for high risk, publically accessible buildings was developed. A total of 13 buildings were inspected from August 2015 to June 2016. • Expanded education/engagement with residents in the High Fire Risk area about Bushfire prevention.
• Food Safety Newsletters were developed and distributed to 398 food business outlets. • The Food Safety Program for food businesses within our Council area was reviewed and expanded. • Essential Safety Provisions register was set-up and tested and is now operational to track, monitor and assess for compliance all large commercial buildings within the City of Mitcham. • Birksgate Street Lighting Upgrade Stage 1 was completed. • Safety fencing around a number of Council owned quarries (as per 2015/16 budget) was installed. • A representative from St Johns Ambulance installed defibrillators and trained library staff at Mitcham and Blackwood Libraries.
• As required by SA Health, Council facilitated a successful local response to the state-wide salmonella outbreak. • Signage was introduced around playgrounds and fitness equipment to ensure that dogs were not allowed off leash within 10 metres of these facilities to improve public safety. CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 17
INCLUSIVE AND CAPABLE COMMUNITY A COMMUNITY THAT WELCOMES AND RESPECTS ALL PEOPLE AND BRINGS THEM TOGETHER IN FRIENDSHIP AND COMMUNITY LEAD ACTION.
PAGE 18 CITY OF MITCHAM ANNUAL REPORT 2015/16
INCLUSIVE AND CAPABLE COMMUNITY GOAL COUNCIL’S FOCUS FOR AN INCLUSIVE AND CAPABLE COMMUNITY HAS BEEN:
OBJECTIVE 8. CREATIVE AND LEARNING COMMUNITY (WE VALUE OUR LOCAL TALENT) PEOPLE EXPRESSING WHO THEY ARE AND PURSUING THE MANY PATHWAYS TO LEARNING AND PERSONAL GROWTH. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • Public Art Policy report and recommendations completed awaiting a Council decision in early 2016/17 financial year.
ADDITIONAL ACHIEVEMENTS • ‘Colour My World’ – a new social group enjoying the benefits of colouring including feeling inspired, sparking creativity and relieving stress, continued to be booked to capacity.
• A range of new community centre based activities to meet the needs of local residents were introduced including: tax information sessions in June at Blackwood, Cumberland Park and Mitcham Cultural Village with 111 people attending (25% residents, 75% small business), additional Senior Men’s Cooking Classes at Blackwood, new Alzheimer’s Dementia Information Session at Mitcham Cultural Village, new Alcoholics Anonymous Forums and a new AA Group at Cumberland Park Community Centre.
OBJECTIVE 9. ENGAGED COMMUNITY (WE ARE ACTIVE CITIZENS) PEOPLE EXCHANGING INFORMATION, KNOWLEDGE, IDEAS AND EXPERIENCES AND PARTICIPATING IN THEIR COMMUNITIES AND PUBLIC DECISION MAKING. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• A shared community garden proposal was developed and is awaiting a Council decision early in the 2016/17 financial year.
• An online public consultation budget allocator trial was undertaken prior to the Annual Business Plan workshops.
• All community engagement public notifications were compliant with Council’s Public Consultation Policy. • Council retained 355 volunteers who contributed to the community including caring for community gardens and reserves, researching local history, driving a community bus, serving lunch to aged residents and more.
• Six Community Ward Forums were held during the year providing an opportunity for the community to meet and engage with the Mayor and Elected Members from each Ward.
VOLUNTEERS
• The biennial Community Satisfaction Survey was undertaken. • Council held a joint informal gathering and Council meeting with the City of Marion to consider the Darlington/ Flinders Project. • Council ran a free “How to Write a Grant Workshop” for Sporting Clubs to assist them in formulating ideas and grant proposals. The workshop was attended by approximately 16 clubs and the session received excellent feedback from the participants. CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 19
INCLUSIVE AND CAPABLE COMMUNITY GOAL OBJECTIVE 10. VIBRANT AND DIVERSE COMMUNITY (WE VALUE AND RESPECT DIVERSITY) PEOPLE HELPING EACH OTHER AND CELEBRATING HISTORY, CULTURE, PEOPLE AND PLACE. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • $30,000 in Community Development Grants was distributed to 32 organisations. • Carols by the Creek and Voices of the Village community events both ran at 75% capacity consistent with the target of 75% set at the beginning of the year. • Council held a successful trial multicultural food and music community event together with a citizenship ceremony on Harmony Day in St Marys. The event attracted 16 different cultures and 600 visitors and will be run again in 2016/17.
ADDITIONAL ACHIEVEMENTS • Council celebrated Reconciliation Week with the Indigenous Art exhibition, Flag Raising Ceremony and Welcome to Country at the Council meeting. • Council partnered with the NBN Co to deliver three Community Information Sessions. • The Council's Access and Inclusion Policy and Plan was endorsed by Council with the Plan being listed on the Australian Human Rights Commission website. • Voices of the Village was held at the Mitcham Reserve for the first time, celebrating the 175th Birthday of the Mitcham Village with an estimated attendance of 600 people. • Youth Fest was held at Karinya Reserve with an estimated attendance of 300. • Carols by the Creek was held at Soldiers Memorial Gardens with an estimated attendance of 2,500 people (lower than usual due to hot weather). • Youth Week attracted a total of 395 young participants and 250 spectators to six different events.
PAGE 20 CITY OF MITCHAM ANNUAL REPORT 2015/16
• The Council's Home and Community Care Programme for over 65s was transitioned to the new Commonwealth Home Support Program. • Work commenced on the development of ‘Partnering to Build An Age Friendly Environment and Community – Regional Strategy and Action Plans for the Cities of Holdfast Bay, Marion and Mitcham. • The annual Australia Day Citizenship and Award Ceremony was held at Carrick Hill with the Governor of South Australia and over 650 people attending the event. • The summer school holidays saw many hundreds of children come in to the Library with their parents to make crafts at their leisure. • The first Home Maintenance Volunteer started assisting residents with both Home and Garden Maintenance and valuable Social Support. • A new Community Welcome Event at our Polling Booth at Mitcham Cultural Village was held attracting 5,000 participants. They were greeted with a volunteer staffed BBQ, a Red Cross cake stall that doubled up as an information booth for the RediPlan, arts and crafts in Gallery One, tours of the Community Shed, a young Unley High School busker, coffee and community centre balloons.
OBJECTIVE 11. EMERGENCY PREPAREDNESS AND RESILIENCE (WE ARE READY FOR EXTREMES) PEOPLE ARE INFORMED AND PREPARED FOR CLIMATIC VARIATION AND NATURAL DISASTERS (SUCH AS HEATWAVE, BUSHFIRE AND FLOOD). The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • Red Cross REDiPlan community education program to assist people to be prepared for, respond to and recover from emergencies was successfully implemented during the year.
ADDITIONAL ACHIEVEMENTS • Adelaide Mount Lofty Ranges Bushfire Management Committee endorsed Bushfire Management Area Plan for the region (this includes the Mitcham Council area).
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 21
HEALTHY ENVIRONMENT A GREEN AND BIODIVERSE CITY CHARACTERISED BY CLEAN AIR, LAND, WATER AND RESPONSIBLE CONSUMPTION.
PAGE 22 CITY OF MITCHAM ANNUAL REPORT 2015/16
HEALTHY ENVIRONMENT GOAL COUNCIL’S FOCUS FOR A HEALTHY ENVIRONMENT HAS BEEN:
OBJECTIVE 12. BIODIVERSITY (WE HAVE UNIQUE AREAS OF BUSH HABITAT) NATURAL HABITAT PROTECTED AND EXPANDED BY RECONNECTING VEGETATION CORRIDORS ALONG WATERWAYS, LINEAR RESERVES, OPEN SPACE AND THE STREETSCAPE. The City of Mitcham achieved the following outcomes against this objective.
ACHIEVEMENTS • Olive and weed control programs were initiated on hills face Reserves. • Extensive clearing of woody weeds and revegetation of open space areas was undertaken in Randall Park including dead Olives and smaller Aleppo Pines being cut down and burned. • Biological control agents (cochineals) were released within the Council area by Urban Animal and Plant Control Support Officer, Natural Resources Adelaide and Mt Lofty Ranges. • A grant from the A&MLR NRM Board of $50,000 (ex GST) enabled removal of European Olive, Aleppo Pine and
Boneseed in and around Grey Box Grassy Woodlands in Randell Park (2.57 hectares) and Blackwood Hill Reserve (0.17 hectares). • Bush care work was undertaken in 2.67 hectares of Grey Box Woodland to control Olive, Boneseed, Erica, Italian Buckthorn, Topped Lavender and Watsonia in Sleeps Hill Quarry Reserve a significant environmental benefit area. • Follow-up control of Bridal Creeper and Boneseed was undertaken in ‘Caring For Our Country’ project sites and other project sites at Blackwood Hill – Mt Batten Reserves and O’Dea's Quarry Reserve.
OBJECTIVE 13. CLEAN ENERGY (WE LOOK FOR BETTER ENERGY SOLUTIONS) CHANGES IN URBAN FORM, TRAVEL HABITS AND CONSERVATION EFFORTS ARE DESIGNED TO REDUCE OUR RELIANCE ON TRADITIONAL COAL POWERED ENERGY, AND PRIORITY IS FOR ALTERNATIVE FIT-FOR PURPOSE ENERGY SOURCES SUCH AS SOLAR. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• Achieved a 4.75% reduction in CO2 emissions.
• Implementation of Resilient South Adaptation to Climate Change continued:
• Implementation of Year 1 initiatives of the Climate Change Adaptation Plan completed.
• Implementation of Resilient South Action Plan 2016 -2019. • Airborne Thermal Imagery and Southern Region Analysis. • Received a grant from Department of Planning, Transport and Infrastructure for the purchase of bikes for use by staff to travel in between local sites, reducing Council's carbon footprint, increasing staff wellbeing and decreasing travel costs to Council. CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 23
HEALTHY ENVIRONMENT GOAL OBJECTIVE 14. WATER SMART (WE SAVE WATER)
The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• New and upgraded stormwater infrastructure project to address known issues and service gaps across the Council area was completed.
• Installation of a number of raingardens to improve water quality as part of the Environment Protection Authority’s raingarden 500 grant funded program.
• Water Sensitive Urban Design street devices were incorporated on projects where there is major road or kerbing reconstruction.
• Installation of innovative Water Sensitive Urban Design projects (eg rain gardens, infiltration and soakage systems, permeable pavement) continued.
• A review of Stormwater Management Plan for the Lower Sturt Catchment area was undertaken through grant funding from the Natural Resource Management Board.
200 KILOMETRES
IPE ER P S AT
HEALTHY CATCHMENTS AND WATERWAYS THAT PROTECT THE ENVIRONMENT, PEOPLE AND PROPERTY.
STORM W
OBJECTIVE 15. RESPONSIBLE CONSUMPTION AND WASTE MINIMISATION (WE MAKE THE MOST OF WHAT WE HAVE) NATURAL RESOURCES ARE CONSERVED AND WASTE IS MINIMISED EITHER THROUGH AVOIDANCE, REUSE, RECYCLING OR RECOVERY. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL MEASURES
• Council’s waste to landfill by weight increased this year by 1.3%, however, an increase of 151 rateable properties accounted for approximately 50% of the increase. The recycling of green organics increased by 8% with general recycling decreasing by 0.5%. This gave a combined improvement of 0.7% in diverting materials away from landfill and an overall diversion rate of 53.94%.
• During the 2015/16 financial year 987.66 tonnes of hard waste was generated (this includes scrap metal which is extracted and recycled but data from the service provider was not available at the time of printing) compared to 964.72 tonnes of hard waste in 2014/15.
PAGE 24 CITY OF MITCHAM ANNUAL REPORT 2015/16
• Lynton Green Waste Drop off facility received 1,082.04 tonnes of organic garden material compared to 883.18 tonnes in 2014/15.
TONNES OF GREEN WASTE TAKEN TO THE LYNTON WASTE DROP OFF FACILITY
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 25
ENTERPRISING CITY A STRONG AND RESILIENT LOCAL ECONOMY THAT SUPPORT BUSINESS AND ATTRACTS INVESTMENT.
PAGE 26 CITY OF MITCHAM ANNUAL REPORT 2015/16
ENTERPRISING CITY GOAL COUNCIL’S FOCUS FOR AN ENTERPRISING CITY HAS BEEN:
OBJECTIVE 16. VIBRANT DISTRICT CENTRES (WE HAVE VILLAGE PLACES) ATTRACTIVE, VIBRANT AND REVITALISED BLACKWOOD, CUMBERLAND PARK AND MITCHAM CENTRES, SUPPORTED BY A VARIETY OF QUALITY COMMUNITY FACILITIES AND RETAIL, COMMERCIAL AND RESIDENTIAL DEVELOPMENT. The City of Mitcham achieved the following outcomes against this objective.
ACHIEVEMENTS • Council continues to investigate opportunities for an improved planning policy framework in Blackwood District Centre as foreshadowed in its ‘Strategic Investigations and Development Plan Amendment Program’. • Council has held discussions and workshops with the State Government through the process of the review of the 30 Year Plan for Greater Adelaide advising that it supports the potential growth and expansion of the three activity centres designated at Mitcham District Centre, Blackwood District Centre and Cumberland Park District Centre.
Council noted that the Blackwood Centre has been identified as secondary renewal area and has potential for renewal to strengthen and grow its role as a key retail, commercial and local employment centre and maximise the benefits of its proximity to the rail infrastructure. As such Council seeks that the Blackwood Centre be elevated to be a primary renewal area as this is presently a key focus of Council.
• A number of workshops/briefings with Elected Members on matters relating to Blackwood District Centre were held. • Administration, with the support of Elected Members, have also considered Blackwood District Centre in a Councilwide retail analysis study; and held discussions with select landowners to better understand their future aspirations for their landholdings and the Centre as a whole.
Council also advises that a direct pathway to strengthening the regional role of Blackwood in terms of commercial activity and meeting the employment targets for the Southern Adelaide Region is to re-evaluate Blackwood to a Primary Renewal Area.
OBJECTIVE 17. PATHWAYS TO EMPLOYMENT (WE WORK WHERE WE LIVE) EDUCATION AND TRAINING PATHWAYS LINK PEOPLE TO LOCAL JOBS AND ATTRACT EMPLOYMENT OPPORTUNITIES THAT MATCH THE SKILL BASE OF OUR COMMUNITY. The City of Mitcham achieved the following outcomes against this objective.
ACHIEVEMENTS • City of Mitcham has offered a range of trainee secondary school work experiences and also university placements to students to facilitate their understanding of professional environments and potential career pathways. For example, we hosted
a University Social Work Placement student for five months full time, several University of Adelaide Arts students and several Concordia College work experience students. • Participation in the City of Onkaparinga Job Ready project.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 27
ENTERPRISING CITY GOAL OBJECTIVE 18. STRATEGIC PROJECTS AND INFRASTRUCTURE (WE MAKE GOOD PARTNERS) STRATEGIC LAND USE AND INFRASTRUCTURE PROJECTS ARE PLANNED COLLABORATIVELY WITH NEIGHBOURING COUNCILS, STATE GOVERNMENT AND THROUGH PRIVATE SECTOR PARTNERSHIPS. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN ACHIEVEMENTS • The Cities of Adelaide, Burnside, Mitcham, Unley and West Torrens, have now agreed to the Stormwater Management Plan which has now been submitted to the Stormwater Management Authority for approval.
ADDITIONAL ACHIEVEMENTS • Council has worked in partnership with SA Health, Flinders Hospital and Department of Planning, Transport and Infrastructure as part SA Health’s ‘Transforming Health' initiative to transform the South Australian Health System. This involves the provision of new facilities aimed at integrating rehabilitation services from the Repatriation General Hospital into the Flinders Medical Centre to allow rehabilitation and aged mental health activities to be undertaken within a network of acute care facilities. The project has brought improvement to traffic and car parking management in the Flinders Precinct with the Hospital gaining development approval to provide a total of 1,800 car parking spaces as part of the hospital expansion. Council has also been designing Council assets and planning for future commuter bike link connectivity with the City of Marion, the Tonsley site and Flinders Precinct.
PAGE 28 CITY OF MITCHAM ANNUAL REPORT 2015/16
• Council has also worked with Department of Planning, Transport and Infrastructure to encourage rezoning of the Bedford Park and St Marys suburbs and along the South Road corridor advocating for increased opportunities for business, commerce, allied health services, housing diversity and sensitive development of affordable housing and student accommodation. • Council negotiated a lease agreement with Telstra Corp for the installation of a Telstra Tower at the Hewett Reserve to provide greater mobile coverage for the hills area. • A number of State and Federally funded road safety projects were completed including upgrading lighting and line marking on Coromandel Parade, Coromandel Valley and Watahuna Avenue, Hawthorndene, and the construction of a roundabout at Cambridge Terrace and Balham Avenue, Kingswood. • Work continued on Springbank Road safety upgrade project in partnership with the Department of Planning, Transport and Infrastructure. • The revised final “Brown Hill Keswick Creek Catchment Stormwater Management Plan March 2016” was submitted to the Stormwater Management Authority for approval on 17 March 2016.
• Work continued on development of a governance model and Charter for a Regional Subsidiary to manage the future delivery of the Brown Hill Keswick Creek Stormwater Management Project. • Joint project established between the Cities of Mitcham, Holdfast, Marion and Onkaparinga, Stormwater Management Authority and Natural Resources Management Board to develop a Stormwater Management Plan for a significant part of the Sturt River drainage catchment. Grant funding was secured, a consultant appointed and work initiated.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 29
EXCELLENCE IN GOVERNMENT A COUNCIL WITH STRONG LEADERSHIP THAT VALUES ITS PEOPLE, CUSTOMERS AND PARTNERS.
PAGE 30 CITY OF MITCHAM ANNUAL REPORT 2015/16
EXCELLENCE IN GOVERNMENT GOAL COUNCIL’S FOCUS FOR EXCELLENCE IN GOVERNMENT HAS BEEN:
OBJECTIVE 19. FINANCIAL SUSTAINABILITY (WE ARE GOOD WITH MONEY)
$524.5m
RESPONSIBLE MANAGEMENT OF COUNCIL’S FINANCIAL RESOURCES AND COMMUNITY ASSETS, AND THE EQUITABLE DISTRIBUTION OF COSTS NOW AND INTO THE FUTURE.
INFRASTRUCTURE ASSETS
The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • 95% of Council’s infrastructure capital works program was completed. • 82% of Council’s natural environments new capital works program completed to date. • 80% of Council’s Asset Management Plan (Buildings) developed for Council adoption early in the 2016/17 financial year. • 2% reduction in the incidence of unauthorised use of Council land. The Council’s key financial indicators were noted in the 2016/17 – 2025/26 Long Term Financial Plan adopted by Council on 12 July, 2016. These financial indicators are based on a 10 year average in line with the Financial Indicators and Measures Policy. • Green indicates a healthy / sustainable result/position. • Yellow indicates a less healthy result/ position that will require attention in the near future and is not sustainable for the long term. • Red indicates an unsustainable result/position that requires immediate attention.
100% 25
50
75
100
NET FINANCIAL LIABILITIES RATIO
28.1 YEARS
52.3%
0
125
Over the life of the 10 year plan, Council sits comfortably within the range of 90% - 110% and based on the fact that the Asset Management Plans include both the planned renewal over the next 10 years as well as addressing the backlog over the coming years, this ratio indicates that Council is replacing its assets at the rate at which they are planned to be replaced as well as addressing the backlog.
15
30
45
60
90
Council is generating sufficient cash from operations to fund asset renewal over the life of the 10 year plan and repay debt in approximately 28 years, well within the average useful life of Council’s depreciable assets (around 66 years). This principle is considered to strike an appropriate balance between financial cost and intergenerational equity. This does not mean that Council will have $Nil debt in approximately 28 years’ time as Council will continue to take out and repay debt in the future as assets are renewed, wear out and replaced in perpetuity. What it means is that the debt taken out over the ten year Long Term Financial Plan (including the debt as at today) will be repaid in approximately 28 years, a period less than the common house mortgage. ASSET RENEWAL FUNDING RATIO
96.2% 0
ASSET SUSTAINABILITY RATIO
0
DEBT REPAYMENT TERM (YEARS)
25
50
75
100
125
0
20
40
60
80
100
Council’s net financial liabilities increase as a percentage of rates income and as a result of redressing the asset renewal backlog that has accumulated over prior years and investing in new capital assets of around $26.45 million over the next 10 years. The ratio however remains under the upper limit of 60% reflecting the affordability of and sustainability of Council’s current and future level of debt.
ADDITIONAL ACHIEVEMENTS • Completed $15.11 million on renewal/ replacement of assets. • Completed $3.4 million on new/ upgraded assets. • Financial Indicators and Measures Policy endorsed. • Treasury Management Policy updated and endorsed. • Annual Financial Statements for 2014/15 finalised – Unqualified Audit Result.
Council is generating sufficient cash from operations to fund asset renewal over the life of the 10 year plan to fund the average asset replacement requirement from the Asset Management Plans and Schedules.
• Unqualified Audit Opinion achieved for Council’s Internal Financial Control System.
OPERATING RESULT
• Undertook a comprehensive condition audit of all Council owned buildings.
1.8% 0
2
4
6
8
10
Council is generating a moderate level of operating result as a percentage of Council rates over the life of the 10 year plan to alleviate the risk of a negative impact on intergenerational equity.
• Major review of Council’s Unauthorised Use of Council Land Policy to allow rates to be applied.
• A Capital renewal program for all Council owned buildings for the next 10 years has been prepared based on the recently completed building condition audit.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 31
EXCELLENCE IN GOVERNMENT GOAL OBJECTIVE 20. SERVICE EFFICIENCY AND EFFECTIVENESS (WE PROVIDE VALUE FOR MONEY) SERVICES, FACILITIES AND INFRASTRUCTURE ASSESSED FOR COMMUNITY NEED AND PROVIDED WHERE COUNCIL IS IN THE BEST POSITION TO DO SO EFFICIENTLY AND COST EFFECTIVELY OR THROUGH PARTNERSHIPS. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
ADDITIONAL ACHIEVEMENTS
• The 2015/16 efficiency savings target of $1.2 million was fully delivered with a savings total of $1,207,000. Efficiency savings help Council to deliver the many services needed and wanted by the community, plus demonstrating a commitment to ratepayers in providing the best value possible.
• Efficiency and Effectiveness Policy endorsed.
• All of the service delivery reviews scheduled for this financial year were implemented on schedule and within budget. • The Library Service Operational Review was completed, and a recommendations report provided to Council on 28 June 2016. It was noted that the City of Mitcham Library Services is performing at or above national and interstate benchmarks. • Review of Property team structure and services commenced.
• Significant productivity increase from field workforce enable additional maintenance and construction works to be completed. • As part of our Organisational Improvement Plan, TechnologyOne is being implemented across Council to replace all major corporate systems. Work has continued throughout this year with TechnologyOne to commence the planning and design stages. To ensure that this opportunity is maximised and improves service efficiency and service delivery, scheduling has been developed to provide adequate time for process review, design and improvement. The project is running to schedule and on budget. • The implementation of the new TechnologyOne enterprise system has identified the need for large scale focus on business process improvement. Processes and procedures across all areas of the organisation were analysed for potential improvement opportunities. All business processes will be reviewed for efficiency and effectiveness.
OBJECTIVE 21. GOOD GOVERNANCE (WE DO THINGS RIGHT) ACCOUNTABLE GOVERNANCE AND ROBUST CORPORATE SYSTEMS FOR DECISION MAKING AND RISK MANAGEMENT. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES • Corporate systems down time was better than the 2% target at 1%. • 99% of Section 7 requests were completed with eight business days with 98.5% of urgent requests completed within 24 hours. • 75% of the Asset Management System developed and populated on a spreadsheet awaiting transfer to the TechnologyOne System. • 40 business processes were defined or improved which was slightly down on our target of 50 for the year. • Community Wellbeing program 100% compliant with Federal funding agreement requirements achieving 132% of service targets. • Consultant engaged and Strategic Management Plan review commenced with completion due during 2016/17 financial year.
ADDITIONAL ACHIEVEMENTS • Preferred vendor for Council’s corporate systems determined after extensive tender and evaluation process. • New Intranet format launched to improve internal communication, teamwork and efficiency. • Disaster recovery back-up servers have now moved offsite to a secure location, this has greatly reduced our information technology risk in case of a disaster. • Review, implementation and gazettal of Council’s 7 By-laws.
PAGE 32 CITY OF MITCHAM ANNUAL REPORT 2015/16
OBJECTIVE 22. PEOPLE AND WORKPLACE CULTURE (WE DO THINGS WELL) A CULTURE OF LEADERSHIP AND A GOOD PLACE TO WORK AND DEVELOP A CAREER. The City of Mitcham achieved the following outcomes against this objective.
OBJECTIVE 23. CUSTOMER FOCUS (WE FOCUS ON YOU) AN ORGANISATION FOCUSED ON ITS INTERNAL AND EXTERNAL CUSTOMERS. The City of Mitcham achieved the following outcomes against this objective.
BUSINESS PLAN MEASURES
BUSINESS PLAN MEASURES
• Improved call resolution rate at first point of contact to 56% exceeding target by 6%.
• Achieved bronze accreditation for the 50/50 Vision – Council for Gender Equity program. • 86% of staff MyPlans (individual staff development plans) completed during the year.
ADDITIONAL STATISTICS Annual Result
• Improved average time calls are answered to 18 seconds.
OBJECTIVE 24. COUNCIL REPUTATION (WE DO WHAT WE SAY) AN ORGANISATION RECOGNISED AS A LEADER IN GOVERNMENT. The City of Mitcham achieved the following outcomes against this objective.
ACHIEVEMENTS • The Community Shed was awarded the Local Government Professional Risk Manager of the Year award for their work in safety leadership.
• Review of Council lease and licence framework commenced. • 100% of all urgent community requests assessed and prioritised for action within 48 hours.
ADDITIONAL HIGHLIGHTS Workforce Development Completed MyPlans
226
Workforce mobility External recruitments
25
Internal recruitments
10
Contract Renewals
9 105
Lost time due to injury (LTIs) (days)
• The online booking system for community centres went live. • EFTPOS Sales introduced at both library branches including staff training.
Work Health and Safety Incidents and accidents
• Completion of consultation, review and implementation of Dog Controls on Council Reserves. Along with creation of a new interactive web mapping application for community access through Council’s website. • Expiation appeal process now available on line.
Separation Rate Transfers
• Established online burning permit process.
70 117
Workforce Profile Current number of Full-time Employee Equivalents (FTEs) Number of Volunteers
256.24 352
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 33
OUR LEADERSHIP AND PEOPLE
Implementation of Equal Employment Programs Council was awarded Bronze Accreditation for the 50:50 Vision Councils for Gender Equity program. This program is the first national accreditation and awards program which encourages councils across Australia to address gender equity issues within the organisation and among their elected representatives.
EXECUTIVE LEADERSHIP GROUP There are five senior executive officers at the City of Mitcham. Their remuneration includes employer superannuation contribution, a Council supplied vehicle and base salary. Remuneration ranges are as follows: Remuneration $
Male
Female
Total
180,000 to 190,000
0
1
1
190,000 to 200,000
2
0
2
210,000 to 230,000
1
0
1
270,000 to 290,000
1
0
1
Total
4
1
5
STAFF
Human Resource Management and Development Programs • Emerging Leaders Development Program provided seventeen staff members across the organisation leadership development through both mentoring and personal and professional development. • Bi-monthly Leadership Group forums were held.
Workforce Profile by Gender and Role Employee Categories
Male
Female
No
%
No
%
Chief Executive Officer
1
100
0
0
Directors
3
75
1
25
Manager
9
56
7
44
Team Leader
9
56
7
44
Employees
126
54
109
46
Total
148
54
124
46
Management/Staff Ratio
A group was formed to facilitate the engagement, promotion and status of women in the organisation. Mitcham Inspired has since run a number of lunchtime motivational workshops with guest speakers for all employees.
Full Time Equivalent
Management*
21
8% of total staff are managers
Staff
235
92% Staff
* Consists of Chief Executive Officer, Directors and Managers. Team Leaders are within Staff.
Approximate ratio is 1 Manager for every 11 staff.
• Over 50 staff completed external communications workshops. • Depot based leadership group completed training in people based leadership skills. • Professional Leaders Program (an Executive Leadership Group initiative established though LGA Professionals SA in partnership with the Executive Education Unit at the University of Adelaide) aimed to develop analytical capabilities in areas such as strategy, finance, operations and legislative context. • Emerging Leaders Scholarship Program (an Executive Leadership Group initiative established though LGA Professionals SA in partnership with the Executive Education Unit at the University of Adelaide) aimed to increase self-awareness, confidence and knowledge of Local Government. • Media and communication workshops were provided for Executive Leadership Group. • A number of staff were supported in external related studies. • 360 degree feedback program for staff with direct reports was initiated and individual development plans resulted. • Provided staff ongoing compliance training in WHS and legislative updates.
PAGE 34 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 35
OUR GOVERNANCE THE CITY HAS AN ACTIVE AND COMMITTED COUNCIL WHICH LISTENS TO ITS COMMUNITY AND IS WORKING TO ENHANCE THE KEY STRATEGIC GOAL AREAS OF ACCESSIBLE CITY, LIVEABLE CITY, INCLUSIVE AND CAPABLE COMMUNITY, HEALTHY ENVIRONMENT, ENTERPRISING CITY AND EXCELLENCE IN GOVERNMENT IN ALL COUNCIL PROGRAMS AND ACTIVITIES.
PAGE 36 CITY OF MITCHAM ANNUAL REPORT 2015/16
REPRESENTATION Comparison of representation quota with councils of similar size Elected Members
Electors
Quota
City of Mitcham
14
47,324
1 : 3,380
City of West Torrens
15
39,281
1 : 2,618
City of Playford
16
52,622
1 : 3,288
City of Campbelltown
11
34,205
1 : 3,109
Representation Reviews, Submissions and Boundary Change Under Section 28 of the Local Government Act 1999 it is possible for a member of the community to initiate an elector submission to request Council to consider changing Council boundaries or to alter the composition of the representative structure of Council. Submissions on representation can be made to Council’s Chief Executive Officer at the Civic Centre (see inside front cover for Council's contact details).
Council is required to conduct a review of representation at least once in every eight years or within a period specified by the Electoral Commissioner. Council undertook its last review of representation in 2013 and accordingly Council must undertake its next review by no later than 2021.
OUR GOVERNANCE
Committees
Audit Committee
Council
Development Assessment Panel
Delegated Powers or Recommendation Role
Subsidiaries
Officers
Strategic Planning and Development Policy Committee
Centennial Park Cemetery Authority
Eastern Waste Management Authority
CEO Performance Review Committee
Community Development Grants
DECISION MAKING STRUCTURE AT THE CITY OF MITCHAM Decisions of the Council are made by the Full Council, the Development Assessment Panel (which has delegated powers), or by staff through delegated authority and/or authorisations. Informed decision making is critical to ensuring that decisions are made in the best interests of the wider community. Council’s formal decision making structure is comprised of: • Full Council • Development Assessment Panel • Section 41 Committees Council is a corporate body and can only make decisions by resolution. Decisions made by the Full Council provide the direction and authority for Council’s ongoing operation. These decisions also provide direction to the Chief Executive Officer and are implemented by Council staff.
The Development Assessment Panel operates separately from Council and has its own procedures, terms of reference and protocol. It was established by Council pursuant to section 56A of the Development Act 1993 to consider development applications and other matters relating to planning and development. Under section 41 of the Local Government Act 1999 Council may establish committees to: • assist it in the performance of its functions; • inquire into, and report on, matters within the ambit of its responsibilities; • provide advice to the Council; and • exercise, perform or discharge delegated powers, functions or duties. These committees are responsible to and report directly to Council. Council currently has four Committees; Audit Committee, CEO Performance Review Committee, Community Development Grants Committee and Strategic Planning and Development Policy Committee.
All meetings of Council and its Committees are held at the City of Mitcham Civic Centre, 131 Belair Road, Torrens Park and are open to the public, unless the meeting decides to exclude the public for special circumstances based on Sections 90(2) and (3) of the Local Government Act 1999. Meeting dates and times are published at the Council Civic Centre and on Council’s website www.mitchamcouncil.sa.gov.au. All agendas and minutes are available for inspection at the City of Mitcham Civic Centre, Libraries and on the website www.mitchamcouncil.sa.gov.au. Documentation for each meeting (agenda with reports/ attachments and minutes) can be accessed on Council’s website www.mitchamcouncil.sa.gov.au. Hard copies of the agendas are made available to the public in the Council Chambers before the meetings. Hard copies of the minutes can be viewed at the Customer Centre within five days of the meeting, without charge.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 37
OUR GOVERNANCE COUNCIL AND COUNCIL MEETINGS
The Council held a total of 22 meetings. The attendance record is below: Membership
ROLE OF COUNCIL The City of Mitcham is established to provide for the government and management of its area at the local level. Its role is to make informed and responsible decisions in the interests of its community. In particular, to provide and co-ordinate services and facilities that will benefit its residents and the wider community, to develop its community and resources in a socially just and ecologically sustainable manner, to encourage and develop initiatives for improving the quality of life of the community, to manage, protect and conserve the environment within its area, and to represent the interests of its community to the wider community. In addition, Council’s role is to exercise, perform and discharge the powers, functions and duties of local government under the Local Government Act 1999 and other applicable legislation. Council membership is 14 Elected Members comprising 13 Ward Councillors and one Mayor.
MEETINGS In 2015/16 Council met at 7.00 pm on the second and fourth Tuesday of each month except on the following occasions: • December 2015 when it met on the second Tuesday only. • January 2016 when it met on the fourth Wednesday only (due to the fourth Tuesday being Australia Day). Members of the community were welcome to attend, except where matters were discussed “in confidence” by members of the Council and the public was excluded.
PAGE 38 CITY OF MITCHAM ANNUAL REPORT 2015/16
Number of Meetings Eligible
Attended
Mayor Glenn Spear
22
21
Councillor Adriana Christopoulos
22
18
Councillor Nicholas Economos
22
18
Councillor Stephen Fisher
22
22
Councillor Nick Greer
22
19
Councillor Tim Hein
22
17
Councillor Karen Hockley
22
18 *
Councillor David Munro
22
14
Councillor Adrian Rosevear
22
19
Councillor John Sanderson
22
20
Councillor Lindy Taeuber
22
22
Councillor Andrew Tilley
22
21
Councillor Yvonne Todd
22
22
Councillor Mark Ward
20
16**
* Councillor Hockley was granted leave from 16 May 2016 until 28 June 2016 (3 meetings). ** Councillor Ward was granted leave from 16 May 2016 and resigned on 24 May 2016.
DEVELOPMENT ASSESSMENT PANEL The functions of Council’s Development Assessment Panel are to act as a delegate of the Council in accordance with the requirements of the Development Act 1993 and, as it thinks fit, to provide advice and reports to the council on trends, issues and other matters relating to planning or development that have become apparent or arisen through its assessment of applications and to perform other functions (other than functions involving the formulation of policy) assigned to the Panel by the Council. The Panel comprised seven members; a Presiding Member (who cannot be a member or officer of Council), three Council members and three independent members. Development Assessment Panel Meetings The Panel met on the first Thursday of the month at 6.30 pm, except in December and January, when it met on the second week of the month. The Development Assessment Panel met 11 times. The attendances at meetings were: Membership
Number of Meetings Eligible
Attended
Mr Gavin Lloyd-Jones (Presiding Member)
11
10
Mr Richard Woods (Independent Member)
11
11
Ms Iris Iwanicki (Independent Member)
11
9
Ms Andrea Thompson (Independent Member)
11
8
Ms Karen Hockley (Council Member)
11
8
Mr Andrew Tilley (Council Member)
11
11
Mr Nicholas Economos (Council Member)
11
9
COMMITTEES OF COUNCIL The Council, pursuant to Section 41 of the Local Government Act 1999, may establish committees to: • Assist the Council in the performance of its functions; • Inquire into and report to the Council on matters within the ambit of the Council’s responsibilities; • Provide advice to the Council; and • Exercise, perform or discharge delegated powers, functions or duties. When establishing a committee, the Council determines the reporting and other accountability requirements that are to apply to the committee. There are two types of Committee: • Prescribed. • Other.
PRESCRIBED COMMITTEES
CEO Performance Review Committee
Committees are prescribed by Determination 7 of 2014 The Remuneration Tribunal Determination of Allowances for Members of Local Government Councils.
The CEO Performance Review Committee undertakes the annual performance review of the Chief Executive Officer. The Committee comprised a panel of five members; the Mayor who chairs the meetings and four Elected Members.
Council received advice and recommendations from three prescribed committees. Their role during the 2015/16 period is set out below. Audit Committee The Audit Committee assists Council in fulfilling its oversight responsibilities relating to accounting, audit, legislative compliance (eg annual financial statement), financial and operational risk management (eg strategic management plans or annual business plans), ensuring effective communication between Council and management and the external Auditor, and reviewing the adequacy of internal controls, reporting and practices of the Council on a regular basis. The Committee is an advisory committee to Council and does not enjoy any delegated powers other than the power to adopt its own Minutes. Membership of the Committee consisted of five members; two Elected Members and three independent members with relevant experience in professions such as, but not limited to, accounting, audit, financial, legal, risk management and governance. In addition to its legislative role the Committee undertook the following: • Considered reports in relation to the management and reporting of Council’s financial assets, activities, risks and the performance of contracts entered into by Council; • Considered reports in relation to financial and accounting policies; and • Monitored and reviewed the performance of Council’s Risk Management Program.
The role of the Committee is to establish key performance objectives for the Chief Executive Officer, to appraise his actual performance against those objectives and to carry out a review of his salary. Strategic Planning and Development Policy Committee The Strategic Planning and Development Policy Committee assists Council in undertaking strategic planning and monitoring and provides advice in relation to: • the extent to which the Council’s strategic planning and development polices accord with the State Planning Strategy; • strategic planning and development policy issues for Strategic Directions Report and Development Plan Amendments. All members of Council were deemed to be members of the Committee which met on an as-needs basis.
OTHER COMMITTEES Community Development Grants Committee The Community Development Grants Committee has delegated authority under section 44(2)(a) of the Local Government Act 1999 to assess applications under the Community Development Grants Policy and to allocate funds as assigned in the annual budget to eligible community groups and organisation in accordance with the Selection Criteria. Membership of the Committee consisted of the Mayor and four Elected Members.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 39
OUR GOVERNANCE COMMITTEE ATTENDANCES
Strategic Planning and Development Policy Committee
Audit Committee
The Strategic Planning and Development Policy Committee met once. The attendances were:
The Audit Committee met five times. The attendances at meetings were: Membership
Membership
Number of Meetings Eligible
Attended
Mayor Glenn Spear
1
1
Number of Meetings Eligible
Attended
Mr Tim Muhlhausler
5
5
Councillor Adriana Christopoulos
1
1
Ms Lisa Scinto
5
5
Councillor Nicholas Economos
1
0
Mr Gary Button
5
3
Councillor Stephen Fisher
1
1
Councillor Karen Hockley
5
4
Councillor Nick Greer
1
1
Councillor John Sanderson
5
5
Councillor Tim Hein
1
0
Councillor Karen Hockley
1
1
Councillor David Munro
1
1
Councillor Adrian Rosevear
1
0
Councillor John Sanderson
1
1
Councillor Lindy Taeuber
1
0
Councillor Andrew Tilley
1
1
Councillor Yvonne Todd
1
1
Councillor Mark Ward
1
1
Councillor Stephen Fisher attended in a proxy capacity for Councillor Karen Hockley on one occasion as she was required to take Leave of Absence during the 2016 Federal Election campaign. CEO Performance Review Committee The CEO Performance Review Committee met three times. The attendances at meetings were: Membership
Number of Meetings Eligible
Attended
Mayor Glenn Spear
3
3
Community Development Grants Committee
Councillor Adriana Christopoulos
3
2
Councillor Nick Greer
3
3
The Community Development Grants Committee met twice to consider applications for grants under various categories. The attendances at meetings were:
Councillor Adrian Rosevear
3
3
Councillor John Sanderson
3
3
PAGE 40 CITY OF MITCHAM ANNUAL REPORT 2015/16
Membership
Number of Meetings Eligible
Attended
Mayor Glenn Spear
2
2
Councillor Adrian Rosevear
2
2
Councillor John Sanderson
2
2
Councillor Lindy Taeuber
2
2
Councillor Andrew Tilley
2
2
COUNCIL SUBSIDIARIES Regional Subsidiaries allow more than one Council to join together to perform a particular function, beneficial to all its members. The City of Mitcham has interests in two regional subsidiary committees pursuant to section 43 of the Local Government Act 1999: • Centennial Park Cemetery Authority.
• Eastern Waste Management Authority.
Centennial Park Cemetery Authority
Eastern Waste Management Authority (East Waste)
Centennial Park Cemetery Authority is a body corporate. The property of the Authority is held on behalf of two constituent owner Councils, the City of Mitcham and the City of Unley. A Board of Management consisting of two Councillors from each Council and three independent members (chosen for their specific areas of expertise) are responsible for the administration of affairs of the subsidiary. A formal charter agreed on by the Constituent Councils sets out the powers, functions and duties of Centennial Park Cemetery Authority. The Authority is established to: • to ensure that the assets and facilities at Centennial Park are developed, maintained and operated in a sustainable and efficient manner; • to deliver effective and sustainable service provision for the Constituent Councils, customers of Centennial Park and the community of South Australia; • to manage the facilities of and services at Centennial Park utilising sound business concepts; • to establish and demonstrate ethical policies and standards, in accordance with the rights of customers and industry standards; • to provide security of tenure for all interment licences at Centennial Park through sound financial and business management; • to pro-actively manage the business of Centennial Park in a competitive and changing environment; • to undertake key strategic and policy decisions for the purpose of enhancing and developing Centennial Park; and • to be financially self-sufficient. A full copy of the Centennial Park Cemetery Annual Report is located in Appendix A.
The property of Eastern Waste Management Authority is held on behalf of the constituent owner Councils being the City of Mitcham, City of Burnside, City of Norwood, Payneham & St Peters, Adelaide Hills Council, Campbelltown City Council, and Corporation of the Town of Walkerville. A Board of Management consisting of three Councillors and three Chief Executive Officers representing the constituent Councils and an independent chair are responsible for the administration of the affairs of the subsidiary. A formal charter agreed on by Constituent Councils sets out the powers, functions and duties of Eastern Waste Management Authority. The Authority is established by the constituent councils for the purpose of the collection and disposal of Waste, primarily within the areas of the constituent councils and has the following functions: • to predominantly operate or obtain services for the collection of Waste on behalf of Constituent Councils and/or other approved Councils; • to provide waste management services whether in or (so far as the Act allows) outside the area of any of the Constituent Councils, including waste collection, recycling of organic and inorganic materials, disposal of waste; and • to undertake management and collection of Waste (in accordance with regulatory approvals) and kerbside materials recovery, on behalf of Constituent Councils (and/ or other approved Councils) in an environmentally responsible, effective, efficient, economic and competitive manner. A full copy of the Eastern Waste Management Authority Annual Report is located in Appendix B.
DELEGATIONS TO CHIEF EXECUTIVE OFFICER The Council has provided the Chief Executive Officer with delegated authority to make decisions on a number of specified administrative and policy matters. The Council reviews these delegations annually. The Chief Executive Officer is able to sub-delegate to other officers of Council. In keeping with legislative requirements Council determines: • the policies to be applied by the Council in exercising its discretionary powers. • the type, range and scope of projects to be undertaken by the Council. • the resources which are to be made available to undertake such works and services.
COUNCIL BRIEFINGS Periodically informal gatherings or discussions are held in accord with section 90(8) of the Local Government Act 1999 including: • planning sessions associated with the development of policies or strategies; • briefing or training sessions; • workshops; • social gatherings to encourage informal communication between members or between members and staff. Briefings are open to the public, except where they are deemed to be closed to the public. At its meeting on 24 November 2015 Council resolved to include details of these gatherings and discussions and attendance by Elected Members in the Annual Report. Accordingly details of these gatherings and discussions since 24 November 2015 have been provided on the page opposite. Briefings are generally held on the third Tuesday of each month and a closed informal gathering is generally held at 6.15 pm on the fourth Tuesday of each month prior to the Council Meeting. Information regarding Council’s briefings is available on Council’s website www.mitchamcouncil.sa.gov.au. CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 41
OUR GOVERNANCE
Date
Topic
Public or Closed
Spear
Christopoulos
Economos
Fisher
Greer
Hein
Hockley
Munro
Rosevear
Sanderson
Taeuber
Tilley
Todd
Ward
COUNCIL BRIEFING ATTENDANCES
15/12/15
Strategic Plan – Vision and Values
Public
Y
Y
Y
Y
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
Annual Business Plan – Strategic Priorities 27/01/16
South Road Darlington Upgrade Project with Mr Luigi Rossi, Department of Planning, Transport and Infrastructure
Public
Y
Y
A
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
2/02/16
Development Plan Amendment – Potential Land use changes in the Vicinity of the Darlington Upgrade Project (North/South Corridor)
Closed
Y
A
Y
Y
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
2/02/16
Urban and Regional Planning Solutions – Future landholdings in Blackwood Centre
Public
Y
A
Y
Y
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
23/02/16
Operational Update
Closed
Y
Y
A
Y
A
Y
Y
Y
Y
Y
Y
Y
Y
Ab
1/03/16
Water for Mitcham
Public
Y
Y
Y
Y
Y
A
A
Y
A
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Ab
Ab Ab
Y
Y
Y
Y
Y
y
Y
A
Annual Business Plan and Budget (Recurrent/ New Capital) 8/03/16
Management of the Full Council Meeting Agenda
Closed
Y
Y
Y
Y
15/03/16
Annual Business Plan and Budget (Operating)
Public
Y
Ab
Y
Y
22/03/16
Operational Update
Closed
Y
Y
Y
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
Y
19/04/16
Sport and Recreation Strategy
Public
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
Y
Y
Y
Y
Library Review Brown Hill Creek Update including Regional Subsidiary 19/04/16
Hayman Retreat and Brighton Parade Traffic Issues
Closed
Y
Y
Y
Y
A
Y
Y
Y
Y
Y
Y
Y
Y
Y
26/04/16
Operational Update
Public
Y
Y
Y
A
Ab
A
Y
A
Y
Y
Y
Y
Y
Y
17/05/16
Public Meeting – Draft 2016/17 Budget and Long Term Financial Plan
Public
Y
Y
Y
Y
Y
Y
L
Y
Y
Y
Y
A
Y
L
Closed
Y
Y
Y
Y
Ab
Y
L
A
Y
Y
Y
Y
Y
L
Public
Y
A
Y
Y
Y
A
L
Ab
Y
Y
Y
Y
A
#
Closed
Y
Y
Y
Y
Y
A
L
A
Y
Y
Y
Y
Y
#
Service Review - 3 years Program South Road, Darlington traffic issues and general traffic issues Blackwood District Centres Review 24/05/16
Update on John Fisher Drive Operational Update
21/06/16
Annual Business Plan and Budget – Operating Projects / Direction Tour Down Under – SATC
28/06/16
Operational Update
# Cr Ward resigned, effective 24 May 2016
PAGE 42 CITY OF MITCHAM ANNUAL REPORT 2015/16
A Apology
Ab Absent
L Leave
Y Yes
MEMBERS’ ALLOWANCES
An Elected Member of Council is entitled to an annual allowance for performing and discharging official functions and duties. The Annual Allowance, as set by the Remuneration Tribunal of South Australia, was:
The Local Government Act 1999 provides for the payment of Elected Member allowances.
ROLE
The Elected Member Allowances and Support Policy sets out a comprehensive summary of the provisions of the Local Government Act 1999 and Regulations in respect to Elected Member allowances, expenses and provision of facilities, support and benefits. It also sets out the circumstances under which Council approves the reimbursement of additional expenses on a discretionary basis. Full details of these and other reimbursements paid to members of Council are detailed in the Register of Allowances and Benefits available for viewing at the City of Mitcham Civic Centre, 131 Belair Road, Torrens Park.
ANNUAL ALLOWANCE
ANNUAL ALLOWANCE
July 2015 - November 2015
November 2015 – June 2016
Mayor
$76,000
$76,864
Elected Members
$19,000
$19,216
Fees for the Audit Committee and Development Assessment Panel members were set by Council resolution as follows: ROLE
FEE
Audit Committee Chairperson per sitting
$490
Audit Committee Independent Member per sitting
$385
Audit Committee Elected Member per sitting
$0
Development Assessment Panel Independent Presiding Member per sitting
$540
Development Assessment Panel Independent Member per sitting
$420
Development Assessment Panel Elected Member per sitting
$215
Payments made to Elected Members The following allowance payments were made to Elected Members during the 2015/16 financial year. Elected Member
Allowance
Mayor Glenn Spear
$76,452 *
Councillor Adriana Christopoulos
$19,113
Councillor Nicholas Economos
$19,113
Councillor Stephen Fisher
$19,113
Councillor Nick Greer
$19,113
Councillor Tim Hein
$19,113
Councillor Karen Hockley
$16,949 **
Councillor David Munro
$19,113
Councillor Adrian Rosevear
$19,113
Councillor John Sanderson
$19,113
Councillor Lindy Taeuber
$19,113
Councillor Andrew Tilley
$19,113
Councillor Yvonne Todd
$19,113
Councillor Mark Ward
$16,949 ***
Total*
$320,593
* Mayor Spear did not accept a car allowance. ** Councillor Karen Hockley elected to have her allowance suspended during her leave of absence (16 May 2016 until 2 July 2016). *** Councillor Mark Ward elected to have his allowance suspended during his leave of absence (11 May 2016 until Cr Ward resigned on 24 May 2016). CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 43
Payments made to Elected Members appointed to the Board of the Centennial Park Cemetery Authority The following sitting fees were paid by Centennial Park Cemetery Authority to Elected Members on the Board of the Authority during the 2015/16 financial year: Board Member
Allowance
Councillor Adriana Christopoulos
$6,620
Councillor Mark Ward
$5,744 *
Mayor Glenn Spear
$0 **
* Cr Mark Ward resigned on 24 May 2016 ** Mayor Spear was appointed on 14 June 2016
Payments made to Elected Members appointed to the Board of the Carrick Hill Trust The following sitting fee was paid by Carrick Hill Trust to an Elected Member on the Board of the Trust during the 2015/16 financial year. Board Member Councillor Lindy Taeuber
Allowance $1,087
Payments made to Elected Members appointed to the Board of the Eastern Waste Management Authority The Elected Member appointed as a Director on the Eastern Waste Management Authority Board does not receive a sitting fee. Board Member Councillor Karen Hockley
PAGE 44 CITY OF MITCHAM ANNUAL REPORT 2015/16
Allowance Nil
OUR GOVERNANCE ELECTED MEMBER TRAINING AND DEVELOPMENT
During the 2015/16 financial year, Elected Members attended the following training and development seminars and conferences: 2015/16 Activity
Attendees
Council encourages continued professional training and development for Elected Members. This is seen as being necessary in terms of good governance and to improve performance of their functions and duties. The Council’s Members’ Allowances and Support Policy sets out the provisions of the Local Government Act 1999 and Local Government (Members Allowances and Benefits) Regulations 2010 in respect of Elected Members allowances, expenses and support (including training and development).
Local Government Association (LGA) Mandatory Online Training – Module 1
Mayor Spear and Councillors Christopoulos, Economos, Greer, Hein, Munro, Sanderson and Ward
LGA Mandatory Online Training – Module 2
Councillor Christopoulos
LGA Mandatory Online Training – Module 3
Councillors Christopoulos and Greer
LGA Mandatory Online Training – Module 4
Mayor Spear and Councillors Christopoulos, Economos, Greer, Hein, Munro, Sanderson and Ward
LGA Economic Development Forum – 14 October 2015
Councillors Taeuber and Todd
LGA Conference – 30 October 2015
Mayor Spear
LGA Conference – 29 & 30 October 2015
Councillor Economos
LGA Conference – 29 & 30 October 2015
Councillor Greer
Joint Regional Elected Member Workshop on Ageing
Councillors Fisher, Hockley, Taeuber and Todd
LGA Showcase – 15 April 2016
Mayor Spear
LGA Showcase – 14 April 2016 and Networking Dinner
Councillor Taeuber
LGA Showcase – 15 April 2016
Councillor Economos
Resilient South Showcase, - 15 June 2016
Mayor Spear and Councillor Taeuber
National General Assembly Conference 20 – 22 June 2016
Councillor Todd
Pursuant to Regulation 8AA of the Local Government (General) Regulations 2013, Council must ensure that Elected Members complete the mandatory Local Government Association Training Standards within the first 12 months of their four year term of office. The mandatory training is made up of four modules and was made available to all Elected Members during this and the 2014/15 financial year: • Module 1 – Introduction to Local Government – minimum requirement 1.5 hours. • Module 2 – Legal Responsibilities – minimum requirement 2 hours. • Module 3 – Council and Committee Meetings – minimum requirement 1.5 hours. • Module 4 – Financial Management and Reporting – minimum requirement 2.5 hours. Access to conferences is dependent on the perceived benefits of attendance to Elected Members and the Council and the available budget. Information gained from attendances at conferences is to be shared with all Elected Members by way of a public report to Council. The Elected Members’ Attendance at Conference Policy covers the circumstances under which Council approves attendance at a local, interstate or overseas conference.
FREEDOM OF INFORMATION Under Section 12 of the Freedom of Information Act 1991, a person has a legally enforceable right to be given access to an agency's documents in accordance with this Act. There were 20 Freedom of Information applications for access received and three applications still being processed from the previous year. Of the 23 applications in total, 14 were released in full, three were partially released, three were refused and three were still in progress as of 30 June 2016. Under Section 30 of the Freedom of Information Act 1991, members of the public may apply to have any information contained in documents which relate to their personal affairs amended. There were no applications for amendment.
by an agency is entitled to a review of the determination. There was one application for internal review received. Under Section 39 of the Freedom of Information Act 1991, a person who is aggrieved by a determination of an agency following an internal review or by a determination that is not liable to internal review may apply to the relevant review authority for a review of the determination. There were no applications to the Ombudsman SA for an external review. Council is required under Section 9(1) and (1a) of the Freedom of Information Act 1991 to publish annually an Information Statement. A copy of this Statement is available from www.mitchamcouncil.sa.gov.au.
Under Section 38 of the Freedom of Information Act 1991, a person who is aggrieved by a determination made CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 45
OUR GOVERNANCE CONFIDENTIAL PROVISIONS The City of Mitcham is committed to the principal of open and accountable government with meetings ordinarily conducted in public. Council also recognises that on occasions it may be necessary or appropriate for particular matters to be considered in confidence as allowed under Section 90 of the Local Government Act 1999. During this financial year 21 of the 405 items considered by Council were considered in confidence under Section 90 of the Local Government Act 1999. The table to the right shows the number of times each clause has been used by Council or its committees. It should be noted that in some instances multiple clauses have been used for single items.
NUMBER OF TIMES USED
SECTION
DESCRIPTION
90(2)
A council or council committee may order that the public be excluded from attendance at a meeting to the extent (and only to the extent) that the council or council committee considers it to be necessary and appropriate to act in a meeting closed to the public in order to receive, discuss or consider in confidence any information or matter listed in subsection (3) (after taking into account any relevant consideration under that subsection)
90(3)(a)
information the disclosure of which would involve the unreasonable disclosure of information concerning the personal affairs of any person (living or dead)
5
90(3)(b)
information the disclosure of which-
9
21
(i) could reasonably be expected to confer a commercial advantage on a person with whom the council is conducting, or proposing to conduct, business, or to prejudice the commercial position of the council; and (ii) would, on balance, be contrary to the public interest 90(3)(d)
commercial information of a confidential nature (not being a trade secret) the disclosure of which-
6
(i) could reasonably be expected to prejudice the commercial position of the person who supplied the information, or to confer a commercial advantage on a third party; and
 
(ii) would, on balance, be contrary to the public interest
PAGE 46 CITY OF MITCHAM ANNUAL REPORT 2015/16
90(3)(g)
matters that must be considered in confidence in order to ensure that the council does not breach any law, order or direction of a court or tribunal constituted by law, any duty of confidence, or other legal obligation or duty;
1
90(3)(h)
Legal Advice
1
90(3)(i)
information relating to actual litigation, or litigation that the council or council committee believes on reasonable grounds will take place, involving the council or an employee of the council;
1
91(7)
If an order is made under subsection (2), a note must be made in the minutes of the making of the order and of the grounds on which it was made.
19
Use of Confidential Provisions during 2015/16 The table below is an extract Council’s Confidential Items Register identifying all the items considered in confidence under Section 90 during 2015/16, the sections used and their status as at 30 June 2016.
Item Report Title
Use of S91(7)
Date
Meeting
27/07/15
CEO Performance Review
2.1 CEO Performance Report
90(3)(a)
No documents were held in confidence.
27/07/15
CEO Performance Review
2.2 CEO Salary and Contract
90(3)(a) 91(7)
Attachment (Contract of Employment) only held in confidence.
11/08/15
Council
8.1 Potential Purchase of Property – 4/7 Edward Street, Blackwood
90(3)(b) 91(7)
Remains in confidence.
11/08/15
Council
90(3)(a) 91(7)
Attachment (Contract of Employment) only held in confidence.
07/09/15
CEO Performance Review
2.1 CEO Key Performance Indicators
90(3)(a) 91(7)
No documents were held in confidence.
07/09/15
CEO Performance Review
2.2 CEO Review of Contract
90(3)(a) 91(7)
Attachment (Contract of Employment) only held in confidence.
08/09/15
Council
8.1 Corporate Systems Preferred Vendor Selection
90(3)(b) & (d) 91(7)
Remains in confidence.
08/09/15
Council
8.2 Proposal to Purchase East Waste Depot Site
90(3)(d) 91(7)
Remains in confidence.
13/10/15
Council
8.1 Blackwood Garden Centre, Main Road, Blackwood, Lease
90(3)(b) 91(7)
Remains in confidence.
13/10/15
Council
8.2 Normalisation of Road Reserve – Boronia Avenue, Coromandel Valley
90(3)(b) 91(7)
Remains in confidence.
20/10/15
Audit
4.1 External Audit Contract
90(3)(b) 91(7)
Remains in confidence.
27/10/15
Council
90(3)(b) & (d) 91(7)
Remains in confidence.
24/11/15
Council
8.1 Ayr Avenue – Acquisition of Easement
90(3)(i) 91(7)
Remains in confidence.
08/12/15
Council
8.1 Council Property – 207-211 Main Road, Blackwood
90(3)(b) 91(7)
Remains in confidence.
27/01/16
Council
7.6 Council Review of Confidential Orders
90(3)(g) 91(7)
Remains in confidence.
27/01/16
Council
90(3)(d) 91(7)
Remains in confidence.
23/02/16
Council
7.7 Randell Park Draft Trail Plan – Community Consultation
90(3)(h) 91(7)
Remains in confidence.
23/02/16
Council
8.1 Land Acquisition – Sturt River and Minno Creek Linear Park
90(3)(b) 91(7)
Remains in confidence.
14/06/16
Council
90(3)(d) 91(7)
Remains in confidence.
28/06/16
Council
8.1 Land Acquisition - Minno Creek Linear Park
90(3)(b) 91(7)
Remains in confidence.
28/06/16
Council
8.2 Centennial Park Cemetery Authority Operating Budget
90(3)(d) 91(7)
Remains in confidence.
9.1.2 CEO Salary and Contract
8.1.1 External Audit Contract
12.3 Possible Purchase of Land
1 Centennial Park Cemetery Authority – Future Upkeep Fund
Section
Status at 30 June 2016
There were 66 orders still operative at the end of the financial year (not including orders made before 15 November 2010). CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 47
SECTION 270 INTERNAL REVIEWS OF DECISIONS During the 2015/16 financial year Council received four requests for a review of a decision under section 270 of the Local Government Act 1999 as follows: Date
Matter
Outcome
January 2016
Rainwater Tank placement and Development Assessment conditions disputed.
Matter deemed part of the Development Assessment process and assessment of application withdrawn.
March 2016
Report presented to the Council Development Assessment Panel challenged in regards to reference to Australian Standards (Lighting).
No procedural or administrative errors or omissions identified in review of report and relevant writing guidelines. Planning maintains high quality of report submission to Council's Development Assessment Panel and in this instance exceeded Council's report preparation and transparency guidelines.
March 2016
Review of structure on Boundary.
Procedural and Administrative practices compliant to Development Act, Regulations and Council Policies and Procedures were demonstrated. Structure deemed compliant and constructed.
April 2016
Review of the decision relating to granting of light poles and amended evening playing hours.
An external investigator was appointed and found no error or omission in Council’s process leading to the decisions. Council decisions were upheld allowing sporting clubs to seek infrastructure improvements and variations to playing times.
PAGE 48 CITY OF MITCHAM ANNUAL REPORT 2015/16
OUR GOVERNANCE NATIONAL COMPETITION POLICY Competitive Neutrality, Significant Business Activities and Structural Reform of Public Monopolies
A comprehensive contract register for all contracts has been in place since 2012/13.
The competition principles applicable to Local Government under the competition principles agreement require that each Local Government authority issue a clause 7 statement. For the last year Council advises that it:
Council is committed to continuous improvement with respect to its procurement practices. Currently the Council is revisiting its policy and procedural framework for procurement together with its contractual tools and considering appropriate change in light of its spend trends.
• Has two significant businesses defined as category 1 businesses under competitive neutrality principles – Eastern Waste Management Authority and Centennial Park Cemetery Authority which neither commenced or ceased during the 2015/16 financial year. • Has no by-laws which place barriers on market entry, conduct or discriminates between competitors. • Has received no complaints alleging a breach of competitive neutrality principles by the agency. • Has not been involved in any structural reform of monopolies. Competitive Tendering The City of Mitcham is committed to ensuring open, fair and transparent processes with respect to procurement activities which ensure the equitable treatment of suppliers while adhering to appropriate standards of probity. The Council’s Procurement Policy adheres to section 49 of the Local Government Act, 1999. The Policy and supporting procedures aim to facilitate the delivery of best value services to the community in a sustainable way. The types of procurement methods utilised by Council are determined by reference to the level of expenditure, established within the Procurement Policy, together with a consideration of the complexity, risk and prevailing market conditions associated with the procurement.
In fulfilling Council’s procurement function the following principles apply:
COMMUNITY LAND AND COUNCIL FACILITIES All management plans for community land have been finalising prior to the 2015/16 financial year. The following land management plans, however, were amended during the period: • Hillview Reserve • Pembroke Place Reserve • Reade Park • Rochester Avenue Reserve
• suppliers need to adhere to acceptable standards of work health and safety practices; • the conservation of resources, energy efficiencies, minimisation of waste, protection of the environment and principles of ecological sustainability are encouraged; and • Council incorporates the principles of the Disability Discrimination Act 1992. Council is committed to maximising the benefits of its procurement activities to the local economy and community. The Procurement Policy provides that subject to all commercial considerations being equal Council may, subject to the law, give preference to: • suppliers operating in the Mitcham Council area; • products that are Australian made; • products that are produced from recycled material collected in Council’s area; • products that are accredited to the Home Workers Code of Practice.
The Council’s Procurement Policy provides for competitive procurement processes for all requirements in excess of $5,000 via quotations or tender processes. In excess of 80% of Council expenditure was subject to a competitive approach to market.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 49
OUR GOVERNANCE DOCUMENTS REQUIRED TO BE MAINTAINED BY COUNCIL The City of Mitcham has a range of corporate governance documents, registers, codes and policies to assist with decision making and to ensure Council’s activities are undertaken in an accountable, efficient, open and transparent manner.
REGISTERS
CODES OF CONDUCT OR PRACTICE
OTHER CORPORATE DOCUMENTS The following corporate documents are also available to the public on Council’s website:
• Assessment Record
The following is a list of the Codes of Conduct or Practice that Council is required to keep under the Local Government Act 1999:
• Policy Register
• Code of Conduct - Elected Members
• Register of By-laws
• Code of Conduct - Employees
• Register of Campaign Donations Returns
• Code of Practice - Access to Meetings and Documents
• Register of Community Land
• Code of Practice - Meeting Procedures
• Register of Dogs
• Code of Conduct - Development Assessment Panel Members
The following are registers kept by Council as required under the Local Government Act 1999 and the Local Government (Elections) Act 1999:
• Register of Delegations • Register of Fees and Charges • Register of Gifts and Benefits – Council Officers • Register of Gifts and Benefits – Elected Members • Register of Interests – Council Officers • Register of Interests – Elected Members • Register of Land Management Agreements • Register of Land Management Agreements – Development Applications • Register of Members Allowances and Benefits • Register of Planning and Building Applications • Register of Remuneration, Salaries and Benefits – Council Officers • Register of Roads
Copies of Codes and Registers (except for Register of Interests – Council Officers) are available to the public from the City of Mitcham Civic Centre, 131 Belair Road, Torrens Park or on Council’s website at www.mitchamcouncil.sa.gov.au.
• Audited Financial Statements • Charter for Centennial Park Cemetery Trust • Charter for East Waste • Council and Committee Agendas and Minutes • Delegations Manual • Development Plan and Development Plan Amendments • Fees and Charges • Information Statement
POLICY DOCUMENTS
• Procedure for the Review of Council Decisions
All of Council's public policies are available to the public and are located on Council’s website and include mandatory policies as follows:
• Strategic Management Plan
• Complaint Handling
• Asset Management Plans
• Induction, Training and Development for Elected Members
The following is available to view or on request:
• Elected Members Allowance and Support
• Electoral Roll
• Informal Gatherings • Internal Control • Internal Review of a Council Decision • Order Making • Procurement • Prudential Management • Public Consultation • Road Naming
PAGE 50 CITY OF MITCHAM ANNUAL REPORT 2015/16
• Annual Report
• Annual Business Plan • Long Term Financial Plan
FINANCIAL STATEMENTS 2015/16 ABN 92 180 069 793
Certification of Financial Statements
52
Principal Financial Statements Statement of Comprehensive Income
53
Statement of Financial Position
54
Statement of Changes in Equity
55
Statement of Cash Flows
56
Notes to, and forming part of, the Principal Financial Statements Note 1
Significant Accounting Policies
57
Note 2
Income
60
Note 3
Expenses
61
Note 4
Asset Disposal and Fair Value Adjustments
62
Note 5
Current Assets
62
Note 6
Non-Current Assets
62
Note 7
Infrastructure, Property, Plant and Equipment
63
Note 8
Liabilities
65
Note 9
Reserves
65
Note 10
Assets Subject to Restrictions
66
Note 11
Reconciliation to Cash Flow Statement
66
Note 12
Functions
67
Note 13
Financial Instruments
68
Note 14
Commitments for Expenditure
69
Note 15
Financial Indicators
69
Note 16
Uniform Presentation of Finances
70
Note 17
Superannuation
70
Note 18
Joint Ventures and Associated Entities
71
Note 19
Contingencies, Assets and Liabilities not Recognised on Balance Sheet
72
Note 20
Events After the Balance Sheet Date
72
Independent Auditor’s Report to the Members of the City of Mitcham
73
Council Certificate of Audit Independence
74
Auditor Certificate of Audit Independence
75
Independent Assurance Report on the Internal Controls of the City of Mitcham
76
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 51
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
CERTIFICATION OF FINANCIAL STATEMENTS
PAGE 52 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016
Notes
2016
2015
$'000
$'000
INCOME Rates
2
49,365
47,353
Statutory charges
2
1,830
1,725
User charges
2
600
568
Grants, subsidies and contributions
2
4,396
4,733
Investment income
2
297
362
Reimbursements
2
195
209
Other income
2
661
723
Net gain - equity accounted Council businesses
18
39
224
57,383
55,897
Total Income EXPENSES Employee costs
3
(21,907)
(20,738)
Materials, contracts and other expenses
3
(19,763)
(19,175)
Depreciation, amortisation and impairment
3
(13,091)
(12,328)
Finance costs
3
(450)
(516)
(55,211)
(52,757)
2,172
3,140 (35)
Total Expenses OPERATING SURPLUS / (DEFICIT) Asset disposal and fair value adjustments
4
(1,819)
Amounts received specifically for new or upgraded assets
2
861
959
Physical resources received free of charge
2
779
1,475
1,993
5,539
NET SURPLUS / (DEFICIT) transferred to Equity Statement Amounts which will not be reclassified subsequently to operating result
21,561
(9,261)
-
(7,809)
Total Other Comprehensive Income
21,561
(17,070)
TOTAL COMPREHENSIVE INCOME
23,554
(11,531)
Changes in revaluation surplus - infrastructure, property, plant and equipment Share of other comprehensive income - equity accounted Council businesses
9 9, 19
This Statement is to be read in conjunction with the attached Notes.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 53
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016
2016
2015
Notes
$'000
$'000
Cash and cash equivalents
5
7,786
10,391
Trade and other receivables
5
4,029
2,657
Inventories
5
54
65
11,869
13,113
ASSETS Current Assets
Total Current Assets Non-current Assets Equity accounted investments in Council businesses
6
11,062
11,023
Infrastructure, property, plant and equipment
7
549,010
524,536
Other Non-current Assets
6
2,928
2,402
Total Non-current Assets
563,000
537,961
Total Assets
574,869
551,074
(4,361)
LIABILITIES Current Liabilities Trade and other payables
8
(5,585)
Borrowings
8
(983)
(982)
Provisions
8
(3,693)
(3,712)
(10,261)
(9,055)
Total Current Liabilities Non-current Liabilities Borrowings
8
(5,131)
(6,040)
Provisions
8
(1,386)
(1,442)
Total Non-current Liabilities
(6,517)
(7,482)
Total Liabilities
(16,778)
(16,537)
NET ASSETS
558,091
534,537
EQUITY 330,035
328,042
Asset Revaluation Reserves
9
228,056
206,495
Other Reserves
9
-
-
558,091
534,537
Accumulated Surplus
TOTAL EQUITY This Statement is to be read in conjunction with the attached Notes.
PAGE 54 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016
Accumulated Surplus
Asset Revaluation Reserve
Other Reserves
TOTAL EQUITY
$'000
$'000
$'000
$'000
328,042
206,495
-
534,537
1,993
-
-
1,993
Changes in revaluation surplus - infrastructure, property, plant and equipment
-
21,561
-
21,561
Share of other comprehensive income - equity accounted Council businesses
-
-
-
-
-
-
-
-
330,035
228,056
-
558,091
322,503
223,565
-
546,068
5,539
-
-
5,539
Notes 2016 Balance at end of previous reporting period Net Surplus / (Deficit) for Year Other Comprehensive Income
Transfers between reserves
9
Balance at end of period
2015 Balance at end of previous reporting period Net Surplus / (Deficit) for Year Other Comprehensive Income Changes in revaluation surplus - infrastructure, property, plant and equipment
-
(9,261)
-
(9,261)
Share of other comprehensive income - equity accounted Council businesses
-
(7,809)
-
(7,809)
Transfers between reserves Balance at end of period
9
-
-
-
-
328,042
206,495
-
534,537
This Statement is to be read in conjunction with the attached Notes.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 55
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2016 2016
2015
$'000
$'000
48,719
47,055
1,456
1,871
User charges
608
550
Investment receipts
504
563
Grants utilised for operating purposes
4,396
4,733
Reimbursements
1,785
2,490
454
522
Employee costs
(21,991)
(20,312)
Materials, contracts and other expenses
(20,469)
(21,982)
Notes CASH FLOWS FROM OPERATING ACTIVITIES Receipts Rates - general and other Fees and other charges
Other revenues Payments
(450)
(516)
15,012
14,974
Amounts specifically for new or upgraded assets
861
959
Sale of replaced assets
685
815
61
789
Finance payments Net Cash provided by (or used in) Operating Activities
11
CASH FLOWS FROM INVESTING ACTIVITIES Receipts
Sale of surplus assets Payments Investment in Joint Venture Activities Expenditure on renewal/replacement of assets
-
(21)
(14,904)
(11,558)
(3,412)
(3,241)
(16,709)
(12,257)
Repayments of borrowings
(908)
(955)
Net Cash provided by (or used in) Financing Activities
(908)
(955)
(2,605)
1,762
Expenditure on new/upgraded assets Net Cash provided by (or used in) Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Payments
Net Increase (Decrease) in cash held Cash and cash equivalents at beginning of period
11
10,391
8,629
Cash and cash equivalents at end of period
11
7,786
10,391
This Statement is to be read in conjunction with the attached Notes.
PAGE 56 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 1
3
Income is measured at the fair value of the consideration received or receivable. Income is recognised when Council obtains control over the assets comprising the income, or when the amount due constitutes an enforceable debt, whichever first occurs.
Basis of Preparation 1.1 Compliance with Australian Accounting Standards This general purpose financial report has been prepared in accordance with Australian Accounting Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting Standards Board, Interpretations and relevant South Australian legislation.
Control over assets acquired from rates is obtained at the commencement of the rating period, or earlier, upon receipt of the rates. Interest income is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
The financial report was authorised for issue by certificate under Regulation 14 of the Local Government (Financial Management) Regulations 2011.
Where grants, contributions and donations recognised as incomes during the reporting period were obtained on the condition that they are expended in a particular manner or used over a particular period, and those conditions were un-discharged as at the reporting date, the amounts subject to those un-discharged conditions are disclosed in these notes. Also disclosed is the amount of grants, contributions and receivables recognised as incomes in a previous reporting period, which were obtained in respect of the Council's operations for the current reporting period. Control over granted assets is normally obtained upon their receipt. The timing of control commencement depends on the arrangement between the grantor and the Council.
1.2 Historical Cost Convention Except as stated below, these financial statements have been prepared in accordance with the historical cost convention. 1.3 Critical Accounting Estimates The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying Council’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are specifically referred to in the relevant sections of this note.
In recent years the payment of untied financial assistance grants has varied from the annual allocation as shown in the table below:
1.4 Rounding All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000). 2
Income recognition All income is stated net of the amount of Goods and Services Tax (GST).
The Local Government Reporting Entity
Cash Payment Received
Annual Allocation
2013/14
$1,314,183
$2,431,875
-
2014/15
$3,197,214
$2,083,074
+
$1,114,140
2015/16
$976,563
$2,072,997
-
$1,096,434
Difference $1,117,692
Because these grants are untied, the Australian Accounting Standards require that payments be recognised upon receipt. Accordingly, the operating results of these periods have been distorted compared to those that would have been reported had the grants been paid in the year to which they were allocated.
City of Mitcham is incorporated under the South Australian Local Government Act 1999 and has its principal place of business at 131 Belair Road, Torrens Park SA 5062. These Annual Financial Statements include the consolidated fund and all entities through which Council controls resources to carry on its functions. In the process of reporting on the Council as a single unit, all transactions and balances between activity areas and controlled entities have been eliminated.
The Operating Surplus Ratio disclosed in Note 15 has also been calculated after adjusting for the distortions resulting from the differences between the actual grants received and the grants entitlement allocated. 4
Cash, Cash Equivalents and other Financial Instruments Cash Assets include all amounts readily convertible to cash on hand at Council’s option with an insignificant risk of changes in value with a maturity of three months or less from the date of acquisition. Receivables for rates and annual charges are secured over the subject land, and bear interest at rates determined in accordance with the Local Government Act 1999. Other receivables are generally unsecured and do not bear interest. All receivables are reviewed as at the reporting date and adequate allowance is made for amounts where their receipt is considered doubtful. All financial instruments are recognised at fair value at the date of recognition. A detailed statement of the accounting policies applied to financial instruments forms part of Note 13.
5 Inventories Inventories held in respect of stores have been valued by using the weighted average cost on a continual basis, after adjustment for loss of service potential.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 57
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) 6
Infrastructure, Property, Plant and Equipment
For assets whose future economic benefits are not dependent on the ability to generate cash flows, and where the future economic benefits would be replaced if Council were deprived thereof, the value in use is the depreciated replacement cost. In assessing impairment for these assets, a rebuttable assumption is made that the current replacement cost exceeds the original cost of acquisition.
6.1 Land Under Roads Council, at its meeting of 24 June 2008, elected not to recognise land under roads in accordance with the deferral arrangements available under AASB 1045 which expired on 30 June 2008. From 1 July 2008, Council has elected not to recognise any values for land under roads acquired before the commencement of AASB 1051 Land Under Roads.
Where an asset that has been revalued is subsequently impaired, the impairment is first offset against such amount as stands to the credit of that class of assets in Asset Revaluation Reserve, any excess being recognised as an expense.
6.2 Initial Recognition All assets are initially recognised at cost. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. All non-current assets purchased or constructed are capitalised as the expenditure is incurred and depreciated as soon as the asset is held “ready for use”. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead.
6.7 Borrowing Costs Borrowing costs are currently not included in the cost of constructing fixed assets. 7 Payables 7.1 Goods and Services Creditors represent amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts.
Capital works still in progress at balance date are recognised as other non-current assets and transferred to infrastructure, property, plant and equipment when completed and ready for use.
7.2 Payments Received in Advance and Deposits Amounts (other than grants) received from external parties in advance of service delivery, and security deposits held against possible damage to Council assets, are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be.
6.3 Materiality Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by Council for each type of asset. In determining (and in annually reviewing) such thresholds, regard is had to the nature of the asset and its estimated service life. Examples of capitalisation thresholds applied during the year are given in Note 7. 6.4 Subsequent Recognition All material asset classes are revalued on a regular basis such that the carrying values are not materially different from fair value. For infrastructure and other asset classes where no active market exists, fair value is determined to be the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. Further detail of existing valuations, methods and valuers are provided at Note 7. 6.5 Depreciation of Non-Current Assets Other than land, all infrastructure, property, plant and equipment assets recognised are systematically depreciated over their useful lives on a straight line basis which, in the opinion of Council, best reflects the consumption of the service potential embodied in those assets. Depreciation methods, useful lives and residual values of classes of assets are reviewed annually. Major depreciation periods for each class of asset are shown in Note 7. Depreciation periods for infrastructure assets have been estimated based on the best information available to Council, but appropriate records covering the entire life cycle of these assets are not available, and extreme care should be used in interpreting financial information based on these estimates. 6.6 Impairment Assets that have an indefinite useful life are not subject to depreciation and are reviewed annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount (which is the higher of the present value of future cash outflows or value in use).
PAGE 58 CITY OF MITCHAM ANNUAL REPORT 2015/16
8 Borrowings Loans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of “Payables”. 9
Employee Benefits 9.1 Salaries, Wages and Compensated Absences Liabilities for employees’ entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months of reporting date are accrued at nominal amounts (including payroll based on-costs) measured in accordance with AASB 119. Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as the present value of the estimated future cash outflows (including payroll based on-costs) to be made in respect of services provided by employees up to the reporting date. Present values are calculated using government guaranteed securities rates with similar maturity terms. Weighted average discount rate Weighted average settlement period
1.75% (2015, 2.00%) 7 years (2015, 7 years)
Annual Leave A liability for annual leave is recognised, and is measured as the amount unpaid at the reporting date at current pay rates in respect of employees’ service up to date. Long Service Leave A liability for long service leave is recognised, and is measured having regard to the present value of expected future payments to be made in respect of service by employees up to the reporting date. The accrual is assessed having regard to the estimated future cash outflows discounted by an appropriate interest rate and other factors, including the experience of employee departures and their periods of service.
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) Sick Leave An accrual is made for payment of sick leave recognised for employees covered by the AWU Enterprise Bargaining Agreement. No accrual is made for sick leave for employees covered by the MOA Award as Council experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting periods. Council does not make payment for untaken sick leave. 9.2 Superannuation Council makes employer superannuation contributions in respect of its employees to the Local Government Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently. No changes in accounting policy have occurred during either the current or previous reporting periods. Details of the accounting policies, contribution rates applied and Council’s involvement with the Scheme is reported in Note 17. 10 Construction Contracts Construction works undertaken by Council for third parties are generally on an agency basis where the third party reimburses Council for actual costs incurred, and usually do not extend beyond the reporting period. As there is no profit component, such works are treated as 100% completed. Reimbursements not received are recognised as receivables and reimbursements received in advance are recognised as “payments received in advance”. 11 Leases Lease arrangements have been accounted for in accordance with AASB 117. In respect of finance leases, where Council substantially carries the entire risks incident to ownership, the leased items are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed within the appropriate asset class, and are amortised to expense over the period during which the Council is expected to benefit from the use of the leased assets. Lease payments are allocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease. City of Mitcham does not hold any finance leases as at 30 June 2016. In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident to ownership of the leased items, lease payments are charged to expense over the lease term. 12 Joint Ventures and Associated Entities Council has a 50% share in the regional subsidiary, Centennial Park Cemetery Authority, and a 16.7% share in the regional subsidiary, Eastern Waste Management Authority. Council’s share in these Authorities has been recognised in the Financial Statements by including its share of the net assets within the Balance Sheet. The change in equity share, excluding the asset revaluation, is disclosed in the Income Statement. These regional subsidiaries are accounted for in accordance with AASB 128 and set out in detail in Note 18. As a result of changes made to the Charter of the Centennial Park Cemetery Authority in August 2011, all distributions paid by the Authority to Council are recorded as revenue in the Statement of Comprehensive Income. Distributions paid by the Authority to Council are regarded as payments for guaranteeing the liabilities of the Authority and accordingly are treated as an expense in the Statement of Comprehensive Income of the Authority. Council also participates in cooperative arrangements with other councils for the provision of services and facilities.
13 Goods and Services Tax (GST) In accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax”: •
Receivables and Creditors include GST receivable and payable.
•
Except in relation to input taxed activities, revenues and operating expenditures exclude GST receivable and payable.
•
Non-current assets and capital expenditures include GST net of any recoupment.
•
Amounts included in the Statement of Cash Flows are disclosed on a gross basis.
Where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO) the GST is recognised as part of the cost of acquisition of the asset or as part of the expense of the item. 14 Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial Assets at Fair Value through the Statement of Comprehensive Income A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise. Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. Held-to-Maturity Investments These investments have fixed maturities, and it is Council’s intention to hold these investments to maturity. Any held-to-maturity investments held by Council are stated at amortised cost using the effective interest rate method. Available-for-Sale Financial Assets Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity. Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Impairment At each reporting date, the Council assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered. 15 New Accounting Standards and UIG Interpretations Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting period ending 30 June 2016. Council has not adopted any of these standards early.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 59
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 2 - INCOME
NOTE 2 - INCOME (CONT) Notes
2016
2015
$'000
$'000
48,792
46,839
(734)
(707)
Amounts received specifically for new or upgraded assets
(248)
(283)
Individually Significant Item
47,810
45,849
RATES REVENUES General Rates Less: Mandatory rebates Less: Discretionary rebates, remissions and write offs
Notes
2016
2015
$'000
$'000
861
959
GRANTS, SUBSIDIES, CONTRIBUTIONS
-
1,102
Other Rates (including service charges)
- supplementary Roads 2 Recovery Grant Payment
542
-
Natural Resource Management levy
1,360
- supplementary Fuel Excise
464
-
1,390
1,360
Other grants, subsidies and contributions
3,390
3,631
5,257
5,692
162
144
1,390
- additional Grants Commission Payment
see below
Other Charges Penalties for late payment Legal and other costs recovered
3
-
165
144
49,365
47,353
STATUTORY CHARGES Development Act fees
303
304
Town planning fees
303
291
Animal registration fees and fines
591
544
Parking fines / expiation fees
523
455
Property and rate searches
108
111
Other licences, fees and fines
-
17
Sundry
2
3
1,830
1,725
USER CHARGES Cemetery
19
8
Reserve Hire Fees
95
112
The functions to which these grants relate are shown in Note 12. Sources of grants Commonwealth Government
2,955
1,453
State Government
2,131
4,050
Other
Individually Significant Item
5,692
1,006
1,102
In June 2015 an amount of $1,102,226 was received from the SA Local Government Grants Commission as an advance payment in respect to Council’s 2015/16 Commonwealth Financial Assistance Grant (FAG), no advance payment has been made in 2015/16 for the 2016/17 financial year.
44
36
149
120
Council Houses
108
114
Home Services
61
51
PHYSICAL RESOURCES RECEIVED FREE OF CHARGE
Sales - general
23
23
Buildings and Other Structures
Sundry
189
5,257
In 2015/16, additional Road to Recovery funding of $1,006,152 was received. The Roads to Recovery Supplementary Grant of $541,530 and the Fuel Excise Supplementary of $464,622 has been included as a Individually Significant Item above.
Hall and equipment hire
Telecommunication Towers
171
Notes
101
104
Roads
600
568
Footpaths
2016
2015
$'000
$'000
-
568
318
392
77
152
-
93
Stormwater Drainage
171
270
Interest on investments
Other Infrastructure
213
-
Local Government Finance Authority
TOTAL PHYSICAL RESOURCES RECEIVED
779
1,475
Kerbing INVESTMENT INCOME
Banks and other
255
288
42
74
297
362
REIMBURSEMENTS - for private works - other
60
94
135
115
195
209
OTHER INCOME 28
289
Contributions from subsidiaries
207
201
Sundry
426
233
661
723
Insurance and other recoupments
PAGE 60 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 3 - EXPENSES
NOTE 3 - EXPENSES (CONT) Notes
2016
2015
$'000
$'000
(17,400)
(17,702)
(2,899)
(1,690)
EMPLOYEE COSTS Employee leave expense
Superannuation - defined benefit plan contributions
2016
2015
$'000
$'000
DEPRECIATION, AMORTISATION AND IMPAIRMENT
Salaries and Wages Superannuation - defined contribution plan contributions
Notes
17 17
Workers' Compensation Insurance Less: Capitalised and distributed costs Total Operating Employee Costs Total Number of Employees
(1,341)
(1,229)
(486)
(486)
(627)
(457)
846
826
(21,907)
(20,738)
256
256
(Full time equivalent at end of reporting period)
Depreciation Buildings - Level 2
(663)
(505)
Buildings - Level 3
(1,396)
(1,458)
(774)
(682)
(8,841)
(8,326)
Plant and Equipment
(931)
(882)
Furniture and Fittings
(486)
(475)
(13,091)
(12,328)
(450)
(516)
(450)
(516)
Other Structures - Level 3 Infrastructure - Level 3
FINANCE COSTS Interest on Loans
MATERIALS, CONTRACTS AND OTHER EXPENSES Prescribed Expenses Auditor's Remuneration - Auditing the financial reports - Other Services Audit Committee Sitting Fees
(34)
(34)
-
-
(6)
(4)
(24)
(26)
Elected Members' expenses
(327)
(277)
Subtotal - Prescribed Expenses
(391)
(341)
(10,325)
(10,341)
(1,725)
(1,804)
(577)
(601)
Development Assessment Panel Sitting Fees
Other Materials, Contracts and Expenses Contractors Energy Water and Sewer Maintenance Insurance
(1,069)
(853)
(416)
(390) (446)
Library Purchases
(423)
Bank and Financial Fees
(170)
(168)
Advertising and Publications
(171)
(150)
Telephone
(135)
(161)
Postage
(162)
(138)
Legal Expenses
(349)
(297)
Fringe Benefits Tax
(265)
(228)
Levies paid to government (1,389)
(1,358)
Licence Fees
(462)
(471)
Parts, accessories and consumables
(432)
(377)
- NRM levy
Subscriptions Professional services Sundry Subtotal - Other Materials, Contracts and Expenses
(98)
(83)
(622)
(352)
(582)
(616)
(19,372)
(18,834)
(19,763)
(19,175)
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 61
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 4 – ASSET DISPOSAL AND FAIR VALUE ADJUSTMENTS Notes
NOTE 6 – NON-CURRENT ASSETS Notes
2016
2015
$'000
$'000
INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT 746
1,604
Less: Carrying amount of assets sold
(2,565)
(1,639)
Gain (Loss) on disposal
(1,819)
(35)
Proceeds from disposal
NET GAIN (LOSS) ON DISPOSAL OR REVALUATION OF ASSETS
(1,819)
(35)
NOTE 5 – CURRENT ASSETS Notes
Deposits at Call
2016
2015
$'000
$'000
317
363
7,469
10,028
7,786
10,391
1,828
1,337
TRADE AND OTHER RECEIVABLES Rates - General and Other Accrued Revenues
-
73
Debtors - general
1,006
467
GST Recoupment
547
276
Prepayments
648
504
4,029
2,657
54
65
54
65
INVENTORIES Stores and Materials
-
863
Receivables -
863
Less: Provision for Impairment
-
(863)
TOTAL FINANCIAL ASSETS
-
-
In June 2010 Council resolved to forgo outstanding repayments of the loan provided to the Blackwood Community Recreation Association Inc. pending the development and agreement of an under-lease. A Deed of Variation of Underlease was signed in 2016 which terminated the loan agreement, the loan therefore was written off. EQUITY ACCOUNTED INVESTMENTS IN COUNCIL BUSINESSES
CASH AND CASH EQUIVALENT ASSETS Cash on Hand and at Bank
2015 $'000
FINANCIAL ASSETS Loans to community organisations
Assets renewed or directly replaced
2016 $'000
Centennial Park Cemetery Authority
18
11,037
Eastern Waste Management Authority
18
25
46
11,062
11,023
10,977
Within the terminology of Section 43 of the Local Government Act 1999, the Centennial Park Cemetery Trust Incorporated is a joint controlling authority of the City of Mitcham and the City of Unley each having 50% interests in the assets, liabilities and operations of the Authority. The Authority was established for the cemetery industry and no financial contributions have been made to the Authority for the financial year. The City of Mitcham's investment in the Authority has been accounted for under the equity method (Note 18). Within the terminology of Section 43 of the Local Government Act 1999, the Eastern Waste Management Authority Incorporated is a joint controlling authority of the City of Mitcham, City of Burnside, City of Norwood, Payneham and St. Peters, Corporation of the Town of Walkerville, City of Campbelltown and the Adelaide Hills Council each having 16.7% interests in the assets, liabilities and operations of the Authority. The Authority was established for the purpose of the collection and disposal of waste within the areas of the Constituent Councils and the collection and disposal of waste outside the areas of the Constituent Councils and no financial contributions have been made to the Authority for the financial year. The City of Mitcham's investment in the Authority has been accounted for under the equity method (Note 19). OTHER NON-CURRENT ASSETS Inventories Capital Works-in-Progress
PAGE 62 CITY OF MITCHAM ANNUAL REPORT 2015/16
2,928
2,402
2,928
2,402
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 7 – INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT AT FAIR VALUE
2015
2016
$'000
$'000
AT COST
ACCUM DEP'N
CARRYING AMOUNT
AT FAIR VALUE
AT COST
ACCUM DEP'N
CARRYING AMOUNT 178,930
178,927
27
-
178,954
178,903
27
-
Buildings - Level 2
8,717
196
(475)
8,438
8,692
1,915
(1,135)
9,472
Buildings - Level 3
58,663
324
(36,116)
22,871
58,427
565
(37,283)
21,709
Land - Level 3
Other Structures - Level 3 Infrastructure - Level 3
20,815
1,938
(10,331)
12,422
25,669
1,270
(13,406)
13,533
595,678
10,144
(311,396)
294,426
637,262
13,429
(332,549)
318,142
Plant and Equipment
-
8,878
(2,997)
5,881
-
9,040
(3,357)
5,683
Furniture and Fittings
-
4,490
(2,946)
1,544
-
4,830
(3,289)
1,541
TOTAL PROPERTY, PLANT AND EQUIPMENT
862,800
25,997
(364,261)
524,536
908,953
31,076
(391,019)
549,010
Comparatives
854,528
33,845
(355,720)
532,653
862,800
25,997
(364,261)
524,536
2015
CARRYING AMOUNT MOVEMENTS DURING YEAR
2016
$'000
$'000
$'000
CARRYING AMOUNT Land - Level 3
Additions New/Upgrade
Renewals
Disposals Depreciation
Transfers
Net Revaluation
CARRYING AMOUNT 178,930
178,954
-
-
(24)
-
-
-
Buildings - Level 2
8,438
64
1,655
(22)
(663)
-
-
9,472
Buildings - Level 3
22,871
-
241
(7)
(1,396)
-
-
21,709
Other Structures - Level 3 Infrastructure - Level 3
12,422
228
1,041
(223)
(774)
(1,068)
1,906
13,533
294,426
3,166
10,263
(1,594)
(8,841)
1,068
19,655
318,142
Plant and Equipment
5,881
-
1,408
(675)
(931)
-
-
5,683
Furniture and Fittings
1,544
-
503
(20)
(486)
-
-
1,541
TOTAL INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT Comparatives
524,536
3,458
15,111
(2,565)
(13,091)
-
21,561
549,010
532,653
3,309
11,802
(1,639)
(12,328)
-
(9,261)
524,536
Valuation of Assets
Buildings
At 1 July 2004 upon the transition to AIFRS, Council elected pursuant to AASB 1.19 to retain a previously established deemed cost under GAAP as its deemed cost. With subsequent additions at cost, this remains as the basis of recognition of non-material asset classes.
The asset class of Buildings was revalued by Maloney Field Services, as at 1 July 2015.
Land Council being of the opinion that it is not possible to attribute a value sufficiently reliable to qualify for recognition; land under roads has not been recognised in these reports. Land acquired for road purposes during the year is initially recognised at cost, but transferred to fair value at reporting date, effectively writing off the expenditure. Freehold land and land over which Council has control, but does not have title, is recognised on the replacement cost basis. Council’s land assets were independently valued by Liquid Pacific as at 30 June 2011.
Buildings have been disclosed as either Fair Value hierarchy Level 2 valuations or as Fair Value hierarchy Level 3 valuations, in accordance with AASB 13 Fair Value Measurement. Building valuations, disclosed as Level 2, are based on prices for similar assets in an active market, with directly or indirectly observable adjustments for specific advantages or disadvantages attaching to the particular asset. For Building valuations, disclosed as Level 3, there is no known market for these assets and they are valued at depreciated current replacement cost. This method involves: -
The determination of the cost to construct the asset (or its modern engineering equivalent) using current prices for materials and labour, the quantities of each being estimated based on recent experience of this or similar Councils, or on industry construction guides where these are more appropriate.
-
The calculation of the depreciation that would have accumulated since original construction using current estimates of residual value and useful life under the straight line depreciation method adopted by Council.
A capitalisation threshold of $1,000 is applied to the acquisition of land. The introduction of AASB13 Fair Value Measurement has had no impact on this class of assets as a revaluation of Land has not been required. Level 3 classified Land assets relate to properties where there is an inability or restriction on Council to sell this asset on the open market. Council has no material value of Land to be classified in other Levels.
This method has significant inherent uncertainties, relaying on estimates of quantities of materials and labour, residual values and useful lives, and the possibility of changes in prices for materials and labour, and the potential for development of more efficient construction techniques. Assets acquired since last valuation have been valued at cost. In accordance with AASB13 Fair Value Measurement, 21 Buildings have been categorised as Level 2 assets. CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 63
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 7 – INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (CONT) Other Structures
Estimated Useful Lives
Other structures were comprehensively reviewed and revalued by Council staff, at written down current replacement cost as at 1 July 2015. This is the first time a comprehensive data collection and valuation exercise has been undertaken by Council staff as previously this exercise was undertaken by external valuers.
Useful lives are estimated for each individual asset. In estimating useful lives, regard is had to technical and commercial obsolescence, as well as legal and other limitations on continued use. The range of useful lives for a representative range of assets is shown below, although individual assets may have an estimated total useful life of greater or lesser amount:
This review comprised a process where the assets were categorized into a more detailed component level than previously held. This process also identified some assets that were not previously listed on Council asset registers as well as some assets that would be more appropriately held on Council’s infrastructure asset registers. The net revaluation amount of $1.906 million includes some assets that were previously not recorded. Carpark assets with a net value of $923,000 were transferred out of the Other Structures asset class into the Infrastructure asset class, prior to the revaluation.
Plant, Furniture and Equipment Office Equipment
5 to 10 years
Office Furniture
3 to 10 years
Vehicles and Road-making Equipment
2 to 8 years
Other Plant and Equipment
5 to 15 years
Building and Other Structures Buildings – Structures
40 to 80 years
The rates and useful lives used by Council staff, for Other Structures, were externally validated by Asset Engineering (Steve Walker B Eng. (Civil)).
Buildings – Roofing
40 years
No assets were received free of charge, from developers, during the 2015/16 financial year.
Buildings – Fit Outs
25 to 45 years
Buildings – Services
40 to 60 years
All other assets acquired since last valuation have been valued at cost.
Park Structures – Masonry
40 to 80 years
In accordance with AASB13 Fair Value Measurement, this class of assets has been disclosed as Level 3.
Park Structures – Other Construction
25 to 60 years
Playground Equipment
25 to 60 years
Infrastructure
Benches, Seats, etc
25 to 40 years
Infrastructure assets were valued by Council officers at written down current replacement cost as at 1 July 2015. This revaluation was based on a combination of Rawlinson’s’ index adjusted for effects of actual costs incurred during the reporting period ended 30 June 2015.
Infrastructure Sealed Roads – Surface – Dense Graded Asphalt
20 to 25 years
The rates and useful lives used by Council staff were externally validated by Asset Engineering (Steve Walker B Eng. (Civil)).
Sealed Roads – Surface – Dense Graded Asphalt (with seal preservation treatment)
25 to 42 years
A comprehensive review of the Stormwater Drainage network was undertaken by Council staff. This resulted in a number of assets being brought to account in the asset register. The net revaluation adjustment includes approx. $19.5 million, of Stormwater assets identified for the first time during a Stormwater data validation audit. The impact on the depreciation expense, of identifying these assets for the first time, is an increase of approximately $300,000.
Sealed Roads – Surface – Concrete Block Paving
40 years
Sealed Roads – Surface – Concrete
50 years
Carpark assets with a net value of $923,000 were transferred out of the Other Structures asset class into the Infrastructure asset class, prior to the revaluation.
Bridges – Vehicular
50 to 200 years
Bridges – Pedestrian
35 to 200 years
All acquisitions made after the respective date of valuation are recorded at cost.
Footpaths
10 to 50 years
Kerbing and Gutters
30 to 80 years
Infrastructure assets received free of charge have been valued at Developer’s costs.
Drains and Culverts
100 years
Sealed Roads – Surface – Spray Seal
Sealed Roads – Pavements – Base Sealed Roads – Pavements – Sub-base
14 years
60 to 80 years 120 to 160 years
Unsealed Roads
10 years
Bus Shelters
Plant and Equipment
30 years
Estimated Residual Values
These assets are recognised on the cost basis.
Office Furniture and Equipment
$1,000
Residual values are estimated for each individual asset. A residual value of an asset is the estimated amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. The disposal is to another party. The estimated amount represents a cash component, as in the case of Plant and Equipment. The range of residual values for a representative range of assets is shown below, although individual assets may have an estimated residual value of a greater or lesser amount:
Other Plant and Equipment
$1,000
Plant and Equipment
Buildings - New Construction / Extensions
$5,000
Minor Plant
0% to 76% of cost basis
Park and Playground Furniture and Equipment
$1,000
Major Plant
16% to 27% of cost basis
Road Construction and Reconstruction
$5,000
Investment property
Paving and Footpaths, Kerb and Gutter
$1,000
As at 30 June 2016, Council did not hold any Investment Property.
Drains and Culverts
$5,000
Reticulation Extensions
$5,000
Furniture and Fittings These assets are recognised on the cost basis. Capitalisation Thresholds Capitalisation thresholds used by Council for a representative range of assets are shown below.
PAGE 64 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 8 – LIABILITIES Notes
2016
2015
$'000
$'000
Current
Non-current
Current
(3,978)
-
(1,796)
-
(444)
-
(507)
-
Non-current
TRADE AND OTHER PAYABLES Goods and Services Payments received in advance Accrued expenses - employee entitlements Accrued expenses - other
(15)
-
(24)
-
(1,053)
-
(2,021)
-
Deposits, Retentions and Bonds
(17)
-
(9)
-
Other payables
(78)
-
(4)
-
(5,585)
-
(4,361)
-
(983)
(5,131)
(982)
(6,040)
(983)
(5,131)
(982)
(6,040)
BORROWINGS Loans payable
All interest bearing liabilities are secured over the future revenues of the Council. PROVISIONS Annual Leave provison (including oncosts)
(1,395)
(845)
(1,431)
(849)
Long Service Leave provision (including oncosts)
(2,294)
(482)
(2,256)
(548)
Vested Sick Leave provision (including oncosts)
(4)
(59)
(25)
(45)
(3,693)
(1,386)
(3,712)
(1,442)
30 June 2015
Net Increments/ (Decrements)
Transfers, Impairments
30 June 2016
$'000
$'000
$'000
$'000 106,524
NOTE 9 – RESERVES Notes ASSET REVALUATION RESERVE 106,524
-
-
Buildings and Other Structures
Land
18,977
1,906
-
20,883
Infrastructure - Roads, bridges, footpaths
73,792
19,655
-
93,447
Joint Ventures - Other TOTAL Prior year comparatives
7,202
-
-
7,202
206,495
21,561
-
228,056
223,565
(9,261)
(7,809)
206,495
30 June 2015
(Transfers to Reserve)
Transfers from Reserve
30 June 2016
OTHER RESERVES None
-
-
-
-
TOTAL OTHER RESERVES
-
-
-
-
-
-
-
-
Prior year comparatives
PURPOSES OF RESERVES Asset Revaluation Reserve The Asset Revaluation Reserve is used to record increments and decrements arising from changes in fair value of non-current assets (less any subsequent impairment losses, where applicable).
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 65
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 10 – ASSETS SUBJECT TO RESTRICTIONS
NOTE 11 – RECONCILIATION TO CASH FLOW STATEMENT
The nature of some of the City of Mitcham's assets, and in particular Centennial Park, is such that they have restricted use because of legal restrictions, heritage requirements or community expectations. The assets are required to be utilised for the purposes for which control was transferred to Council, or for which the revenues were originally obtained.
(a) Reconciliation of Cash
Notes
2016
2015
$'000
$'000
CASH AND FINANCIAL ASSETS
Total cash and cash equivalent assets
Unexpended amounts received from Federal Government Trails
189
190
Sturt Creek Linear Park
149
122
50
149
Stormwater Management Plan - Lower Sturt catchment
Cash Assets comprise highly liquid investments with short periods to maturity subject to insignificant risk of changes of value. Cash at the end of the reporting period as shown in the Statement of Cash Flow is reconciled to the related items in the Statement of Financial Position as follows;
-
19
Net Surplus/(Deficit)
Traffic Management
25
17
Non-cash items in Income Statement
432
497
Centennial Park Cemetery Authority Eastern Waste Management Authority TOTAL ASSETS SUBJECT TO EXTERNALLY IMPOSED RESTRICTIONS
11,037
10,977
25
46
11,062 11,494
$'000
5
7,786
10,391
7,786
10,391
1,993
5,539
(b) Reconciliation of Change in Net Assets to Cash from Operating Activities
19
INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT
2015
$'000
Balances per Cash Flow Statement
CCTV – Windy Point
Special Local Roads program - Winston Ave
2016 Notes
13,091
12,328
(Increase)/decrease in equity accounted investments
(39)
(224)
Net increase/(decrease) in unpaid employee benefits
(75)
421
Depreciation, amortisation and impairment
-
-
Non-cash asset acquisitions
(779)
(1,475)
11,023
Grants for capital acquisitions treated as Investing Activity
(861)
(959)
11,520
Net (Gain)/Loss on Disposals
Premiums and discounts recognised and unwound
1,819
35
15,149
15,665
Net (increase)/decrease in receivables
(1,372)
51
Net (increase)/decrease in inventories
11
-
1,224
(742)
15,012
14,974
779
1,475
779
1,475
Add/(Less): Changes in Net Current Assets
Net increase/(decrease) in trade and other payables Net Cash provided by/(used in) operations (c) Non-Cash Financing and Investing Activities Acquisition of assets by means of: - Physical resources received free of charge
2
(d) Financing Arrangements Unrestricted access was available at balance date to the following lines of credit: Corporate Credit Cards LGFA Cash Advance Debenture facility
64
56
2,000
2,000
Council does not have access to a bank overdraft facility. Council does have immediate access to a short-term draw-down facility, and variable interest rate borrowings under a cash advance facility, both from the Local Government Finance Authority of South Australia.
PAGE 66 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 12 – FUNCTIONS INCOMES, EXPENSES AND ASSETS HAVE BEEN DIRECTLY ATTRIBUTED TO THE FOLLOWING FUNCTIONS AND ACTIVITIES INCOME
Business Undertakings Community Services Cultural Services Environment
OPERATING SURPLUS (DEFICIT)
EXPENSES
TOTAL ASSETS HELD (CURRENT AND NON-CURRENT)
GRANTS INCLUDED IN INCOME
ACTUAL
ACTUAL
ACTUAL
ACTUAL
ACTUAL
2016
2015
2016
2015
2016
2015
2016
2015
2016
2015
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
ACTUAL
26
18
(90)
(78)
(64)
(60)
20
13
-
-
1,526
1,441
(5,387)
(5,401)
(3,861)
(3,960)
1,040
1,023
17,263
17,952
511
532
(3,466)
(3,428)
(2,955)
(2,896)
427
444
11,750
13,698
1,798
1,645
(10,371)
(10,480)
(8,573)
(8,835)
110
110
89,291
66,278 187,497
110
244
(3,917)
(5,635)
(3,807)
(5,391)
-
110
189,451
Regulatory Services
1,751
1,618
(4,237)
(3,787)
(2,486)
(2,169)
-
-
-
-
Transport
2,004
1,166
(10,408)
(10,094)
(8,404)
(8,928)
1,965
1,073
235,453
235,334
Recreation
173
112
(2,014)
(642)
(1,841)
(530)
165
102
18,360
19,512
Council Administration
49,445
48,897
(15,321)
(13,212)
34,124
35,685
669
1,858
13,301
10,803
TOTALS
57,344
55,673
(55,211)
(52,757)
2,133
2,916
4,396
4,733
574,869
551,074
Unclassified Activities
Excludes net gain (loss) on disposal or revaluation of assets, net gain (loss) from joint ventures and associated entities, amounts received specifically for new or upgraded assets and physical resources received free of charge. The activities relating to Council functions are as follows: Community Services
Regulatory Services
Public Order and Safety, Crime Prevention, Emergency Services, Other Fire Protection, Other Public Order and Safety, Health Services, Pest Control – Health, Immunisation, Nursing Homes, Preventive Health Services, Other Health Services, Community Support, Elderly Citizens Facilities, Home Assistance Scheme, Other Services for the Aged and Disabled, Child Care Centres, Children and Youth Services, Community Assistance, Community Transport, Family and Neighbourhood Support, Other Community Support, Community Amenities, Bus Shelters, Cemeteries, Public Conveniences, Car Parking – non-fee-paying, Telecommunications Networks, and Other Community Amenities.
Dog and Cat Control, Building Control, Town Planning, Clean Air / Pollution Control, Litter Control, Health Inspection, Parking Control, and Other Regulatory Services.
Culture Library Services, Mobile Libraries and Housebound Services, Static Libraries, Other Library Services, Cultural Services, Cultural Venues, Heritage, Museums and Art Galleries, and Other Cultural Services. Environment Agricultural Services, Agricultural Water, Animal / Plant Boards, Landcare, Other Agricultural Services, Waste Management, Domestic Waste, Green Waste, Recycling, Transfer Stations, Waste Disposal Facility, Other Waste Management, Other Environment, Stormwater and Drainage, Street Cleaning, Street Lighting, Streetscaping and Other Environment.
Transport Bridges, Bus Service, Footpaths and Kerbing, Roads – sealed, Roads – formed, Roads – natural formed, Roads – unformed, Traffic Management, LGGC – Roads (formula funded), and Other Transport. Unclassified Activities Activities such as depot operations net of plant recovery and other miscellaneous costs, which are not easily classified in any of the activities, are shown in this function. Council Administration Governance, Administration n.e.c., Elected Members, Organisational, Support Services, Accounting / Finance, Payroll, Housing for Council Employees, Human Resources, Information Technology, Communication, Rates Administration, Records, Occupancy, Contract Management, Customer Service, Other Support Services, Revenues, LGGC – General Purpose, Natural Resource Management Levy and Separate and Special Rates.
Recreation Parks and Gardens, Sports Facilities – Indoor, Sports Facilities – Outdoor, and Other Recreation.
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 67
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 13 – FINANCIAL INSTRUMENTS Bank, Deposits at Call, Short Term Deposits •
Accounting Policy - Carried at lower of cost and net realiseable value; interest is recognised when earned.
•
Terms and Conditions - At 30 June 2016, deposits at call were returning an average floating interest rate of 1.95% (2015: 2.15%).
•
Carrying Amount - Approximates fair value due to the short term to maturity.
Receivables - Rates and Associated Charges (including legal charges and penalties for late payment) Note: These receivables do not meet the definition of "financial instruments" and have been excluded from the following disclosures: •
Accounting Policy - Carried at nominal values less any allowance for doubtful debts. An allowance for doubtful debts is recognised (and reassessed annually) when collection in full is no longer probable.
•
Terms and Conditions - Secured over the subject land, arrears attract interest of 7.25% (2015: 7.75%). Although Council is not materially exposed to any individual debtor, credit risk exposure is concentrated within Council's boundaries in the State.
•
Carrying Amount - Approximates fair value (after deduction of any allowance).
Liquidity Analysis
Carrying Amount - Approximates fair value (after deduction of any allowance).
Receivables - Other Levels of Government •
Accounting Policy - Carried at nominal value.
•
Terms and Conditions - Amounts due have been calculated in accordance with the terms and conditions of the respective programs following advice of approvals, and do not bear interest. All amounts are due by Departments and Agencies of the Governments of the Commonwealth and State.
•
•
Terms and Conditions - Liabilities are normally settled on 30 day terms.
•
Carrying Amount - Approximates fair value.
Liabilities - Interest Bearing Borrowings •
Accounting Policy - Carried at the principal amounts. Interest is charged as an expense as it accrues.
•
Terms and Conditions - Secured over future revenues, borrowings are repayable bi-annually; interest is charged at fixed rates between 5.65% and 8.27% (2015: 5.65% and 8.27%).
•
Carrying Amount - Approximates fair value.
PAGE 68 CITY OF MITCHAM ANNUAL REPORT 2015/16
$'000
7,786
-
-
7,786
7,786
-
-
2,201
2,201
Total
9,987
-
-
9,987
9,987
(4,517)
Financial Liabilities Payables
(4,517)
-
-
(4,517)
Current Borrowings
(1,310)
-
-
(1,310)
(983)
-
(4,778)
(1,727)
(6,505)
(5,131)
(5,827)
(4,778)
(1,727) (12,332) (10,631)
Due < 1 year
Due > 1 year; < 5 years
$'000
$'000
Non-Current Borrowings Total
Cash and Equivalents Receivables Total
Total Due > Contractual 5 years Cash Flows
Carrying Values
$'000
$'000
$'000
10,391
10,391
-
-
10,391
2,183
-
-
2,183
2,183
12,574
-
-
12,574
12,574
(2,316)
Financial Liabilities Payables
(2,316)
-
-
(2,316)
Current Borrowings
(1,358)
-
-
(1,358)
(982)
-
(4,447)
(3,368)
(7,815)
(6,040)
(3,674)
(4,447)
(3,368) (11,489)
(9,338)
Non-Current Borrowings Total
The following interest rates were applicable to Council's borrowings at balance date: 30 June 2016
Carrying Amount - Approximates fair value. Accounting Policy - Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to Council.
$'000
2,201
Weighted Average Interest Rate
Liabilities - Creditors and Accruals •
$'000
Receivables
Financial Assets
•
$'000
Carrying Values
Cash and Cash Equivalents
•
Terms and Conditions - Unsecured, and do not bear interest. Although Council is not materially exposed to any individual debtor, credit risk exposure is concentrated within Council's boundaries.
$'000
Total Due Contractual > 5 years Cash Flows
Financial Assets
2015
•
Due > 1 year; < 5 years
2016
Receivables - Fees and Charges Accounting Policy - Carried at nominal values less any allowance for doubtful debts. An allowance for doubtful debts is recognised (and reassessed annually) when collection in full is no longer probable.
Due < 1 year
Payables Fixed Interest Rates
Carrying Value
30 June 2015 Weighted Average Interest Rate
Carrying Value
%
$'000
%
$'000
nil
(4,517)
nil
(2,316)
(6,114)
6.85%
(7,022)
6.85%
(10,631)
(9,338)
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 13 – FINANCIAL INSTRUMENTS (CONT)
NOTE 15 – FINANCIAL INDICATORS 2016
Net Fair Value All carrying values approximate fair value for all recognised financial instruments. There is no recognised market for the financial assets of the Council.
2014
These Financial Indicators have been calculated in accordance with Information Paper 9 - Local Government Financial Indicators prepared as part of the LGA Financial Sustainability Program for the Local Government Association of South Australia. Detailed methods of calculation are set out in the SA Model Statements.
Risk Exposures Credit Risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financial assets of the Council is the carrying amount, net of any allowance for doubtful debts. Council investments made with the SA Local Government Finance Authority are guaranteed by the SA Government. Other investments are made in line with Council's investment policy. Except as detailed in Notes 5 and 6 in relation to individual classes of receivables, exposure is concentrated within the Council's boundaries and there is no material exposure to any individual debtor.
Operating Surplus Ratio 3.8%
Operating Surplus
5.6%
(2.2%)
Total Operating Revenue This ratio expresses the operating surplus as a percentage of total operating revenue.
Market Risk is the risk that fair values of financial assets will fluctuate as a result of changes in market prices. All of Council's financial assets are denominated in Australian dollars and are not traded on any market, and hence neither market risk nor currency risk apply.
Adjusted Operating Surplus Ratio
6%
4%
(0%)
In recent years the Federal Government has made advance payments prior to 30th June from future year allocations of financial assistance grants, as explained in Note 1. The Adjusted Operating Surplus Ratio adjusts for the resulting distortion in the disclosed operating result for each year.
Liquidity Risk is the risk that Council will encounter difficulty in meeting obligations with financial liabilities. In accordance with the model Treasury Management Policy (LGA Information Paper 15), liabilities have a range of maturity dates. Council also has available a standby borrowing facility of $2 million that it can access.
Net Financial Liabilities Ratio
Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Council has a balance of both fixed and variable interest rate borrowings and investments. Cash flow fluctuations are managed holistically in seeking to minimise interest costs over the longer term in a risk adverse manner.
NOTE 14 – COMMITMENTS FOR EXPENDITURE Notes
2015
9%
Net Financial Liabilities
6%
12%
Total Operating Revenue Net Financial Liabilities are defined as total liabilities less financial assets. These are expressed as a percentage of total operating revenue. Asset Sustainability Ratio 74%
Net Asset Renewals
72%
85%
Infrastructure and Asset Management Plan required expenditure
2016
2015
$'000
$'000
Capital Commitments
Net asset renewals expenditure is defined as net capital expenditure on the renewal and replacement of existing assets, and excludes new capital expenditure on the acquisition of additional assets.
Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities: Building Infrastructure
-
98
351
162
351
260
These expenditures are payable: 351
260
Later than one year and not later than 5 years
-
-
Later than 5 years
-
-
351
260
Not later than one year
Other Expenditure Commitments Other non-capital expenditure commitments in relation to investment properties: 35
35
13,058
9,682
13,093
9,717
Not later than one year
3,878
4,340
One year - not later than 5 years
8,910
5,079
Audit Services Waste Management Services These expenditures are payable:
Later than 5 years
305
298
13,093
9,717
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 69
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 16 – UNIFORM PRESENTATION OF FINANCES
NOTE 17 – SUPERANNUATION
The following is a high level summary of both operating and capital investment activities of the Council prepared on a simplified Uniform Presentation Framework basis. All Councils in South Australia have agreed to summarise annual budgets and long-term financial plans on the same basis.
Marketlink (Accumulation Fund) Members
The arrangements ensure that all Councils provide a common 'core' of financial information, which enables meaningful comparisons of each Council's finances.
Income less Expenses Operating Surplus / (Deficit)
2016
2015
$'000
$'000
57,383
55,355
(55,211)
(52,757)
2,172
2,598
(15,111)
(11,802)
13,091
12,328
685
815
(1,335)
1,341
less Net Outlays on Existing Assets Capital Expenditure on renewal and replacement of Existing Assets less Depreciation, Amortisation and Impairment less Proceeds from Sale of Replaced Assets
less Net Outlays on New and Upgraded Assets Capital Expenditure on New and Upgraded Assets less Amounts received specifically for New and Upgraded Assets
Net Lending / (Borrowing) for Financial Year
(2,680)
The Council makes employer superannuation contributions in respect of its employees to Statewide Super (formerly Local Government Superannuation Scheme). There are two types of membership, each of which is funded differently. Permanent and contract employees of the South Australian Local Government sector with Salarylink benefits prior to 24 November 2009 have the option to contribute to Marketlink and / or Salarylink. All other employees (including casuals) have all contributions allocated to Marketlink.
(1,834)
861
959
(1,819)
(875)
(982)
3,064
Marketlink receives both employer and employee contributions on a progressive basis. Employer contributions are based on a fixed percentage of employee earnings in accordance with superannuation guarantee legislation (9.50% in 2015/16; 9.50% in 2014/15). No further liability accrues to the Council as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund. Salarylink (Defined Benefit Fund) Members Salarylink is a defined benefit scheme where the benefit payable is based on a formula determined by the member’s contribution rate, number of years and level of contribution and final average salary. Council makes employer contributions to Salarylink as determined by the Trustee based on advice from the appointed Actuary. The rate is currently 6.30% (6.30% in 2014/15) of “superannuation” salary. In addition, Council makes a separate contribution of 3.00% of salary for Salarylink members to their Marketlink account. Employees also make member contributions to the Fund. As such, assets accumulate in the Fund to meet the member's benefits, as defined in the Trust Deed, as they accrue. The Salarylink section is a multi-employer sponsored plan. As the Fund's assets and liabilities are pooled and are not allocated by each employer, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided by AASB 119.32(b), Council does not use defined benefit accounting for these contributions. The most recent actuarial investigation was conducted by the Fund's actuary, A C Miller, FIAA, of Russell Employee Benefits Pty Ltd as at 30 June 2014. The Trustee has determined that the current funding arrangements are adequate for the expected Salarylink liabilities. However, future financial and economic circumstances may require changes to Council’s contribution rates at some future time. Contributions to Other Superannuation Schemes Council also makes contributions to other superannuation schemes selected by employees under the “choice of fund” legislation. All such schemes are of the accumulation type, where the superannuation benefits accruing to the employee are represented by their share of the net assets of the scheme, and no further liability attaches to the Council.
PAGE 70 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 18 – JOINT VENTURES AND ASSOCIATED ENTITIES Eastern Waste Management Authority
All equity accounted Council businesses are required to prepare Annual Financial Statements that comply with the SA Local Government Model Financial Statements. Centennial Park Cemetery Authority Centennial Park Cemetery Authority is a regional subsidiary established in terms of Sections 42 and 43 of the Local Government Act 1999. It is a regional subsidiary of the City of Mitcham and the City of Unley, each holding a 50% interest in the net assets. The Council's share of net assets of the Authority included in these statements are consistent with the Authority's audited financial statements and notes thereto. 2016
2015
$'000
$'000
The Eastern Waste Management Authority regional subsidiary was established pursuant to Section 43 of the Local Government Act 1999, for the purpose of the collection and disposal of waste within the areas of the Constituent Councils and the collection and disposal of waste outside the areas of the Constituent Councils. The Authority is a regional subsidiary established by; City of Burnside, City of Norwood, Payneham and St. Peters, Corporation of the Town of Walkerville, City of Mitcham, City of Campbelltown, Adelaide Hills Council. On 29 November 2012 a new charter was gazetted which has had the effect of decreasing the City of Mitcham's ownership interest from 26.2% to 16.7%. The transactions which occur between Council and the Authority are at arm’s length and are for the provision of waste management services.
Centennial Park Cemetery Authority
2016
2015
Council's respective interests are:
$'000
$'000
- interest in the operating result
50.0%
50.0%
Eastern Waste Management Authority
- ownership share of equity
50.0%
50.0%
Council's respective interests are:
- the proportion of voting power
50.0%
50.0%
- interest in the operating result
16.7%
16.7%
- ownership share of equity
16.7%
16.7%
- the proportion of voting power
16.7%
16.7%
Movements in Investment in Joint Operation Opening Balance Share in Operating Result Share in asset revaluation due to impairment Share in Equity of Joint Operation
10,977
18,605
60
181
-
(7,809)
Opening Balance
11,037
10,977
Share in Operating Result
Movements in Investment in Joint Operation 46
3
(21)
20 22
New Capital Contributions
-
Contingent Liabilities
Adjustment to Equity Share
-
1
Each member of the operation is jointly and severally liable for the debts of the operation
Share in Equity of Joint Operation
25
46
- arising from Council's share of the joint operation
(1,390)
(1,480)
- arising from joint and several liability of all members
(8,339)
(8,861)
- arising from Council's share of the joint operation - arising from joint and several liability of all members
(8,101)
(8,264)
(16,201)
(16,528)
The Centennial Park Cemetery Authority has a contingent liability in relation to unused licenses in the event the Authority ceases to take any business. The Authority must pay an annual liability Guarantee Fee, to each Constituent Council, on account of the guarantee. The contingent liability for 2016 is $207k (2015: $196k).
Contingent Liabilities Each member of the operation is jointly and severally liable for the debts of the operation
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 71
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
NOTES TO AND FORMING PART OF THE ANNUAL FINANCIAL STATEMENTS NOTE 19 – CONTINGENCIES ASSETS AND LIABILITIES NOT RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION The following assets and liabilities do not qualify for recognition in the Statement of Financial Position but knowledge of those items is considered relevant to the user of the financial report in making and evaluating decisions about the allocation of scarce resources. 1. Land Under Roads As reported elsewhere in these Statements, Council is of the opinion that it is not possible to attribute a value sufficiently reliably for these assets to qualify for recognition, and accordingly land under roads has not been recognised in these reports. Land acquired for road purposes during the year is initially recognised at cost, but transferred to fair value at reporting date, effectively writing off the expenditure. At reporting date, Council controlled 406.2 km of road of average width 7.0 metres. 2. Potential Insurance Losses Council is a multi-purpose organisation providing a range of building, parks, infrastructure, playgrounds and other facilities accessible to the public. At any time it is likely that claims will have been made against Council that remains unsettled. Council insures against all known insurable risks using a range of insurance policies, each of which is subject to a deductible "insurance excess", the amount of which varies according to the class of insurance. Council has recognised the potential loss arising from claims known at reporting date based on average historical net cost (including insurance excess) of similar types of claims. Other potential claims not reported to Council may have existed at reporting date. 3. Bank Guarantees Council has guaranteed certain loans and other banking facilities advanced to community organisations and sporting bodies, amounting to $Nil (2015: $Nil) at reporting date. Council does not expect to incur any loss arising from bank guarantees. 4. Legal Expenses Council is the planning authority for its area under the Development Act 1993 (as amended). Pursuant to that Act, certain persons aggrieved by a planning decision of the Council may appeal. It is normal that parties bear their own legal costs. At the date of these reports Council had notice of 5 appeals (2015: 14) against planning decisions made prior to the reporting date. All known costs have been recognised, but the amount of further costs cannot be known until the appeals are determined. 5. Brown Hill Keswick Creek Storm Water Project The City of Mitcham continues to work collaboratively with the Cities of Burnside, Unley and West Torrens and the Corporation of the City of Adelaide to develop a catchment based Stormwater Management Plan (SMP) for the Brown Hill Keswick Creek catchment. The purpose of the SMP is to mitigate and manage flood risk in the Brown Hill and Keswick Creek catchments and to achieve storm water reuse where feasible and economical. The project Councils submitted the SMP 2012 in late 2012 and this SMP was subsequently approved and gazetted by the Stormwater Management Authority (SMA) in March 2013. Under the approved SMP, Councils proposed engineering and other works in Brown Hill (downstream of Anzac Highway) and Keswick Creek and its tributaries. These works, referred to a Part A works, were endorsed and comprised approximately 80% of the value of the project. Determination of the remaining flood mitigation works in Brown Hill Creek upstream of Anzac Highway (referred to as Part B works) was to be confirmed within one year of gazettal of the SMP 2012 (ie by March 2014). Due to the complexity of the proposed engineering solutions and community interest in the SMP Part B (“dam or no dam”), the investigations into the proposed Part B works took longer to complete than originally planned resulting in a further extension of time being granted by the SMA to September 2015.
PAGE 72 CITY OF MITCHAM ANNUAL REPORT 2015/16
The “Brown Hill Keswick Creek SMP Part B Report” was completed in September 2014 and subsequently referred for community consultation during May and June 2015 after the conclusion of Local Government elections. The results of community consultation and the final decision on proposed Part B works have been finalised. The gazetted SMP 2012 requires that Councils establish a regional subsidiary primarily to undertake the detail design, construction and maintenance of the Part A and B flood mitigation works over a defined project timetable, subject to funding commitments from Federal and State Governments. The five project Councils reached agreement to approximately 80% of the total proposed project works under Part A and continued to fund the investigation into a preferred option for “Part B” works. The forecast cost of the Brown Hill and Keswick Creeks Stormwater Management Plan was estimated to be in the order of $147 million, with implementation planned over a 10 year period. It was envisaged no construction work would be undertaken until after the investigation of Part B works has been completed by the Project and the final preferred concept approved by the SMA. Based on the estimated cost and cost sharing arrangements approved under the Stormwater Management Plan (SMP 2012), the City of Mitcham’s share of the Local Government contribution is set at 10%, which equates to an indicative cost of between $5.0 million and $7.0 million depending on project funding support received. During September 2015 all five catchment Councils formally agreed and resolved to accept Option D (the no dam option) as the flood mitigation solution outlined in the Brown Hill Keswick Creek Stormwater Management Plan Part B. The final Stormwater Management Plan which comprises an amalgamation of Parts A and B to form the final “Brown Hill Keswick Catchment Stormwater Management Plan 2016” was submitted to the SMA for approval on 17 March 2016 with a revised estimated cost of $140 million and agreement from the catchment Councils to continue work on the establishment of a Regional Subsidiary. Whilst the City of Mitcham continues to collaborate with the other catchment Councils to establish a regional subsidiary, as of 30 September 2016 a regional subsidiary had not been established. It is unlikely that a regional subsidiary will be established until after Part B and the overall SMP has been approved by the SMA and project funding has been agreed by the catchment Councils, State and Federal Governments. As at 30 September 2016, the Project (catchment Councils) does not own any assets. 6. Goodwood Junction Rail Project – Contribution towards costs of Brown Hill Creek Diversion As part of the State Governments rail improvement project and major grade separation of rail infrastructure at Goodwood Junction was undertaken in 2013 and 2014. One of the requirements of the project was to divert Brown Hill Creek around the proposed rail infrastructure from approximately Victoria Street Goodwood to Forestville Reserve. Although the State Department of Planning Transport and Infrastructure funded a major part of the works, the Brown Hill Keswick Creek project also agreed to fund up to $5.0 million of the total project costs, subject to the SMA confirming that they would meet 50% of the project council’s costs once the works were constructed. On this basis, the City of Mitcham is committed to pay 10% of the Local Government contribution of $5.0 million, being $500,000 subject to the SMA reimbursing 50% of that amount. The City of Mitcham paid its Local Government project contribution of $250,000 in February 2015. This contribution has been included in the expenses reported in the Statement of Comprehensive Income. All assets associated with this work remain under the care and control of DPTI.
NOTE 20 – EVENTS AFTER THE BALANCE SHEET DATE At the end of September 2016 the Council area was subject to extreme weather conditions which has damaged Councils infrastructure assets. As at the time of reporting, the full extent of the damage caused was unknown and was being assessed.
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
INDEPENDENT AUDITOR'S REPORT TO THE CITY OF MITCHAM
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 73
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
COUNCIL CERTIFICATE OF AUDIT INDEPENDENCE
PAGE 74 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
AUDITOR CERTIFICATE OF AUDIT INDEPENDENCE
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 75
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
INDEPENDENT ASSURANCE REPORT ON THE INTERNAL CONTROLS OF THE CITY OF MITCHAM
PAGE 76 CITY OF MITCHAM ANNUAL REPORT 2015/16
CITY OF MITCHAM ANNUAL FINANCIAL STATEMENTS 2015/16
INDEPENDENT ASSURANCE REPORT ON THE INTERNAL CONTROLS OF THE CITY OF MITCHAM
CITY OF MITCHAM ANNUAL REPORT 2015/16 PAGE 77
APPENDICES Centennial Park Cemetery 2015/16 Annual Report East Waste 2015/16 Annual Report
PAGE 78 CITY OF MITCHAM ANNUAL REPORT 2015/16
79 143
annual report
2015/2016
2
Message from the Chair As South Australiaâ&#x20AC;&#x2122;s premier provider of cemetery, cremation and memorialisation services, Centennial Park has always striven to maintain an exceptional site and continue to improve its offerings. This year we have embarked on a number of key projects, all aimed at enhancing the experience of both visitors to the park and users of our services. Our heritage-listed Jubilee Complex remains a focus, and this year we completed a number of improvements to it, including:
extension of our audiovisual system into the foyer, including a new video wall and speakers, enabling the foyer to be used for large services as well as other functions and events
n completion
n levelling
n installation
n signage
n completion of a large portion of the
n an
n renovation
n installation
of the Heysen Lounge, with new carpet, furniture, lighting and curtains of a new disabilitycompliant toilet near the main entrance, and an upgrade of other amenities.
All approvals are now in place for the development of a cafĂŠ complex to the south of the Jubilee buildings in the coming year, and our board expects that its completion in the near future will add substantially to the visitor experience at the park. Ongoing improvements in our grounds included:
main entrance from Goodwood Road, vastly improving traffic flow (to be further developed in the coming year)
n installation
of right-turn access and an upgrade of the semi-circle at the
of the soil and mulch storage compound at the Operations complex of the area east of Orthodox C in readiness for future expansion of a new public toilet on the southern boundary of the park, including landscaping of the surrounding area and installation of a large rainwater tank, complete with pump and irrigation and landscaping of the Manse Terrace entrance work in our new burial areas, Olive Terrace, Olive Views and Martinique Grove.
We continue to strengthen our connections with the community through our various events. This yearâ&#x20AC;&#x2122;s events included an ANZAC Day outdoor cinema tribute and a moving Mothers Day concert featuring Rachel Leahcar. Small-group tours are now being conducted through our grounds and crematorium. The demand for places on these tours is very strong and additional tours have been added. This is a fabulous opportunity to explore Centennial Park, to see some areas that are not generally open to the public, and to get an appreciation of the options available.
3 To acknowledge the role that art plays in life and in healing, we continued our relationship with the SALA (South Australian Living Artists) Festival, and introduced the SALA Centennial Park Environment Award. We congratulate Tobias Staheli on being the inaugural winner. The Jubilee Complex foyer provided a stunning backdrop for an exhibition titled La Vita, which featured some of SA’s most talented artists, and last year’s Artist in Residence, Ruth Gregor, completed her sculpture, The Cycle of Life. The result is a beautiful piece of contemporary art located to the north-west of the complex.
now the norm. This year, as part of the substantial upgrade of our website, we introduced a free online memorial service for families of those buried or cremated at Centennial Park. Our online memorials are a lovely way for families to connect from wherever they may be in the world, and build an enduring record in celebration of the life of their loved one.
The pace of change continues to escalate, and the timing of the development of our new Strategic Plan could not be better. With a clearly articulated vision and direction supported by a robust operational plan, an experienced board, and a skilled workforce, we are confident that Centennial Park will continue to provide a destination and service standard of which all South Australians can be proud.
Remaining relevant and responding to emerging trends and developments is crucial to our ongoing viability. This year saw a further move towards cremation in preference to burial. We remain committed to providing new and innovative ways to memorialise, and so offer an extensive range of choices in our 30 themed memorial gardens. There remain cultures, religions, and individuals who still prefer burial, and we will continue to provide traditional options, as well as those that are more contemporary. Regardless of whether burial or cremation is chosen, it is most important that family, friends, and future generations have a place to come to visit and reflect. It’s that sense of place that’s crucial. Services have taken on a much more celebratory tone in recent years, with longer services, brightly coloured clothing, videos and upbeat music
Stephen Hains, Chair
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
4
Message from the CEO After 20 years in professional services, I came to Centennial Park looking for a number of things: a challenging role in which my commerciality and sense of compassion were required in equal measure; an industry with a strong community focus; and a team that was driven by the desire to serve. Like most people, working in a cemetery wasn’t high on my list of career objectives. In fact, it wasn’t something I’d even considered. Yet it meets all the above criteria, and so many more. For those who already have a connection with Centennial Park, it will come as no surprise to learn that I’ve found it to be a wonderful place to work and spend time. The stunningly beautiful natural environment is complemented by an impressive team of people who find great satisfaction in helping to guide our families through often difficult times. This is, by necessity, balanced with prudent business management. Despite our local government ownership, we are a self-funding commercial enterprise, and—like most other organisations— are subject to competition and market pressures. Unlike many organisations, though, we have an enduring responsibility to the thousands of families who have chosen Centennial Park as the final resting place for their loved ones. We have an obligation to maintain the park for generations to come, which requires strong financial and commercial management. With the introduction of perpetual interment options late last year, this has become even more important.
In the 2015-2016 financial year revenue was higher than in the previous year, although not as high in some areas as we had expected. This was due primarily to delays in completion of our new burial areas, caused in part by inclement weather. The declining death rate also played a role; defying predictions to the contrary. Despite this, we continued to invest in key areas, such as resources and maintenance, as would be expected of SA’s premier cemetery. For the 2016-2017 year, we have established an operating budget that takes account of the highly competitive environment and changing community attitudes, but still allows for significant improvements across the park. These improvements include laying rollover kerbing for easier access to grave sites and gardens, further beautification of our burial areas, and an upgrade of the Heysen Chapel. We are also forging ahead with the projects outlined in our Future Concepts Plan, released in 2015. In coming months, we will complete the final stages of our three new burial areas:
n Olive
Terrace, which provides full monumentation vaults
n Olive Views, which provides for lawn
burials with grander monuments
n Martinique Grove, which offers lawn
burials around beautiful Magnolia trees.
5 Work on the café, which is being built in response to community feedback, will also start. The café will provide a warm and inviting space for people to reconnect and reminisce, or just have some time alone to reflect over a coffee. We will continue to strengthen connections with the Centennial Park community, as well as the broader population. This will take a variety of forms, ranging from community events held throughout the year to keeping our families informed through our regular newsletter, ParkLife, which also provides a valuable avenue through which readers can share their views.
I have also recently joined the executive of the Cemeteries and Crematoria Association of SA. We work collaboratively with other key stakeholders to enhance the offerings and performance of our industry, and therefore provide greater community benefit. This also provides Centennial Park and South Australia with an important voice on industry matters.
It’s been a wonderful, and very busy, start to my career at Centennial Park. I’ve been warmly welcomed into the team, and have thoroughly enjoyed gaining a full understanding of this fascinating field. My arrival coincided with the need for a new Strategic Plan, and I look forward to setting a course that will ensure we are able to meet any challenges—and capitalise on all opportunities—for the benefit of the whole Centennial Park community.
Janet Miller, CEO
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
6
Key Information Throughout our 80-year history, Centennial Park has been a self-funded commercial enterprise. Income is currently generated from four key areas, being burials, cremations, chapel services, and memorialisation, with further income generated through investments. Centennial Park continues to provide burial or cremation services for 32% of all recorded deaths in the state. However, we are mindful that, as competition increases and community attitudes change, we must continually look for new ways to meet the needs of our community and secure our position as South Australiaâ&#x20AC;&#x2122;s premier cemetery. STATE DEATHS The death rate in South Australia has increased over the last 10 years. However, as the chart shows, the movement from year to year has not been constant, and in 2015-2016 the rate defied predictions by decreasing by around one percent.
State Deaths
Despite an increased death rate over the past 10 years, the number of burials in the Adelaide metropolitan area has declined by 13% during the same period. In line with this trend, annual burial numbers at Centennial Park decreased from 955 in 2005-2006 to 804 in 2015-2016, while our market share remained constant. These diminishing burial numbers reflect changing community preferences for cremation over burial. Ten years ago, 55% of the South Australian population chose cremation over burial; today it is more than 70%
Burial Numbers Centennial Park
BURIALS In 2015-2016, Centennial Park provided 804 burial services, which represented almost 40% of all metropolitan burials for the year.
7 For some cultures and individuals, however, burial remains the preference, and we will meet this need through a range of unique burial options not previously available at Centennial Park. These include full monumentation vault burials and grand monumentation lawn burials. In addition, we are the first cemetery in South Australia to now offer positions in perpetuity.
Market Share - Burials Centennial Park
Our market share was 36% for the year, which is lower than the previous year due to the ongoing impact of increased competition from private operators with low overhead structures. The prevalence of â&#x20AC;&#x153;no-service cremationsâ&#x20AC;? continues to increase, and the price charged for a cremation remains at a 10-year low.
MEMORIAL INCOME Income from memorials for the year exceeded that generated in the prior year by 1.3%, and represented growth of 26% over the past decade. Memorial income accounts for almost 31% of total income reported for the year.
The 2015-2016 year marked the 30th year that Centennial Park has performed more than 3,000 cremations, with a total of 3,430 being conducted.
Considerable efforts are being made to raise awareness of the need to keep contact details up to date. This enables us to contact interment right holders to ascertain their wishes regarding their interment rights (both burial and cremation memorials). Extension of these rights accounted for income in excess of $1.67m.
Cremations Centennial Park
Memorial Income Centennial Park
CREMATIONS
CHAPEL SERVICES Increased competition and changing community attitudes towards funeral services has seen the number of chapel services conducted in the Jubilee Complex fall over the past decade. Numbers for 2015-2016 were slightly down on the previous year, with a total of 1,414 services performed. This represented 33% of all burial or cremation services conducted at Centennial Park. We continue with our program of refurbishment, with additional works planned in the new financial year to further enhance the presentation of the heritage-listed complex and increase the number of services held.
Chapel Services Centennial Park
INVESTMENT INCOME Over the past decade Centennial Park has been building cash reserves in order to fund the provision for future maintenance of the grounds. The amount of cash, and cash equivalents, has grown steadily over that time, with a slight reduction in 2012/2013 representing the utilisation of funds to finance the construction of the Operations complex, which freed up land for additional burial sites.
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
8
Strategic Goals In helping Centennial Park realise its 2015/2016 strategic goals, significant contributions were made across the organisation. A sample of these achievements follows. GOAL 1
Significant projects
Achieve long-term financial sustainability by strengthening our competitive position
Centennial Park continues to invest in infrastructure and its facilities to ensure the park meets community expectations. Several significant projects were undertaken during the financial year, including:
Financial performance The Centennial Park Cemetery Authority (the Authority) achieved a surplus of $129,349 for the 2015-2016 financial year, representing a return on income of 1.4%.
n development
n landscaping
No change was made to the Future Upkeep Provision, which was maintained at the 2014-2015 level.
n replacement
Salaries and wages represented approximately 51% of business expenses; an increase from 47% in the previous year. However, total expenses for the year increased by less than 1%.
n additional
Discounting the Liability Guarantee Fee, the result for the year would have been $542,560â&#x20AC;&#x201D;a 6% return on income, compared to 10% last year.
n public
A summary of the financial performance of the Authority is provided overleaf and a complete set of audited annual accounts is attached.
n upgrades
The calculation of this surplus includes a Liability Guarantee Fee of $413,211 paid to the Cities of Mitcham and Unley. This fee represents 15.75% of general operating expenses, compared to 15% in the previous year.
of right-hand-turn access from Goodwood Road and Stage 1 of the main entrance redevelopment, with the semicircle upgrade will be completed in 2016-2017 and preparation of the area east of Orthodox C to accommodate 55 new beams in the future as needed of box guttering with rollover kerbing to provide better access to pathsâ&#x20AC;&#x201D;continuing in 2016-2017 beams installed in Catholic H and J, Lawn 1, Bahai and General AF, increasing opportunities for new burials toilet and new water tanks installed in the newly developed premium burial sections of Olive Terrace and Olive Views in the Jubilee Complex (see page 9).
9 Summary Financial Report for the year ended 30 June 2016 2016 $
2015 $
2014 $
2013 $
2012 $
2011 $
2010 $
Total Revenue from ordinary activities
9,151,225
9,307,249
8,753,743
8,552,599
9,017,029
8,631,098
Future Upkeep Provision Movement Administration Expenses Jubilee Complex Cemetery Expenses Crematorium Expenses Garden & Maintenance Expenses Memorial Expenses Magdalene Tce
2,792,677 922,868 1,649,641 1,020,825 805,941 1,816,677 13,247
146,000 2,797,529 943,809 1,494,832 1,005,941 904,996 1,592,275 16,910
2,477,331 899,304 1,284,079 994,365 1,391,737 1,383,541 14,349
(85,800 ) 2,340,868 857,816 1,082,046 896,780 1,459,749 1,022,383 10,084
855,800 2,562,879 1,104,451 959,222 868,322 1,706,917 693,273
60,000 1,962,287 919,325 956,659 873,810 1,658,838 769,910
TOTAL EXPENSES
2009 $
2008 $
7,980,362
7,743,847
7,394,095
50,000 2,023,538 773,952 994,726 806,585 1,607,911 721,479
(570,000 ) 2,112,647 727,746 753,596 860,557 1,710,699 568,496
253,000 1,959,347 610,221 660,175 747,955 1,653,756 575,977
9,021,876
8,902,292
8,444,706
7,583,926
8,750,864
7,200,829
6,978,191
6,163,741
6,460,431
Surplus/(deficit) from ordinary activities
129,349
404,957
309,037
968,673
266,165
1,430,269
1,002,171
1,580,106
933,664
Less: Financial Contribution to Constituent Councils
129,349 804 3,430 1,414 521
404,957 810 3,652 1,447 613
309,037 783 3,309 1,345 546
968,673 889 3,374 1,567 502
266,165 797 3,440 1,774 606
160,368 1,269,901 890 3,316 1,881 658
153,039 849,132 935 3,471 1,887 604
148,892 1,431,214 931 3,473 2,024 745
139,526 794,138 928 3,325 1,962 731
9,536,493 472,237 759,941 265,662
10,512,953 492,345 781,144 297,438
10,639,273 552,163 180,671 208,572
9,676,260 570,725 198,613 277,314
10,539,808 651,887 310,601 236,240
11,443,077 653,132 394,601 181,283
10,185,557 666,309 120,463 249,460
6,818,769 756,595 221,878
5,830,217 678,746 133,969 -
11,034,333
12,083,880
11,580,679
10,722,912
11,738,536
12,672,093
11,221,789
7,797,242
6,642,932
27,039,402
26,399,469
41,294,794
41,855,054 -
39,999,135 -
33,438,125 -
33,626,980 -
33,845,924 2,300,000
32,985,619 2,300,000
Surplus/(deficit) after distributions Burial Services Conducted Cremation Services Conducted Chapel Services Conducted New Memorial Licences Written
CURRENT ASSETS Cash and Cash Equivalents Trade and Other Receivables Inventories Other Assets TOTAL CURRENT ASSETS
NON-CURRENT ASSETS Property, Plant and Equipment Financial Assets TOTAL NON-CURRENT ASSETS
27,039,402
26,399,469
41,294,794
41,855,054
39,999,135
33,438,125
33,626,980
36,145,924
35,285,619
TOTAL ASSETS
38,073,735
38,483,349
52,875,473
52,577,966
51,737,671
46,110,218
44,848,769
43,943,166
41,928,551
522,152 669,262
1,020,704 691,570
670,459 373,111
442,685 607,398
433,125 615,047
600,908 365,830
1,031,700 229,303
1,010,463 147,739
925,518 108,563
1,191,414
1,712,274
1,043,570
1,050,083
1,048,172
966,738
1,261,003
1,158,202
1,034,081
CURRENT LIABILITIES Trade and Other Payables Short Term Provisions TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES 14,809,243
14,816,172
14,621,957
14,626,974
14,709,153
13,890,683
13,604,870
13,651,200
14,205,870
TOTAL NON-CURRENT LIABILITIES
14,809,243
14,816,172
14,621,957
14,626,974
14,709,153
13,890,683
13,604,870
13,651,200
14,205,870
TOTAL LIABILITIES
16,000,657
16,528,446
15,665,527
15,677,057
15,757,325
14,857,421
14,865,873
14,809,402
15,239,951
NET ASSETS
22,073,078
21,954,903
37,209,946
36,900,909
35,980,346
31,252,797
29,982,896
29,133,764
26,688,600
48,702 7,663,085 14,391,291
48,702 7,489,072 14,417,129
48,702 7,126,655 30,034,589
48,702 6,847,919 30,004,288
48,702 5,879,246 30,052,398
48,702 5,613,081 25,591,014
48,702 4,343,180 25,591,014
48,702 3,494,048 25,591,014
48,702 2,062,834 24,577,064
22,103,078
21,954,903
37,209,946
36,900,909
35,980,346
31,252,797
29,982,896
29,133,764
26,688,600
Long Term Provisions
EQUITY Contributed Equity Retained Earnings Reserves TOTAL EQUITY
The figures produced for the financial years ending June 2006, 2007, 2008, 2009, 2010 and are based on the transition to new accounting standards (AIFRS).
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
10
Strategic Goals Jubilee Complex The heritage-listed Jubilee chapel complex is key to the services we provide the South Australian community. Built some 30 years ago, it remains the focal point for approximately 10% of all funerals conducted in South Australia, and was the setting for 1,414 funeral services in 2015-2016. As part of our commitment to ongoing maintenance of this iconic building, significant funds were invested during the year on projects including: the refurbishment of the Heysen Lounge; upgrades to audio visual equipment and hearing loops; new security cameras; and other building works. This came to a total of over $237,000. A conditions report was also commissioned to assist in the development of a long-term asset management plan for the Jubilee facility, so as to ensure it continues servicing community demand for years to come.
Profile raising Although the park has been an integral part of the South Australian community for over 75 years, raising our public profile is as important as ever, given the competitive environment in which we operate and the changing makeup of our community. Throughout the 20152016 year we implemented a number of strategies aimed at achieving this increased awareness. Our Open Days are major events designed to showcase the natural beauty of the park and highlight the many services we provide. From our Open Day in October 2015, a schedule of behind-the-scenes
tours has been developed, with demand for places remaining strong through to the end of the 2016 calendar year. In addition to public relations and general media opportunities, social media strategies were developed and implemented in order to reach new audiences. The success of these strategies has seen a growth in numbers of Facebook followers from around 2,200 people to over 7,000.
Community engagement Our community is at the heart of everything we do, so increasing the number and quality of engagement opportunities has been, and remains, a major priority. Our community engagement activities in 2015-2016 primarily consisted of hosting events and supporting community groups, with the aim of increasing familiesâ&#x20AC;&#x2122; visitation and strengthening their connection with the park. A number of events were held during the year, including tributes for Remembrance Day, Fathers Day, Christmas, ANZAC Day, and Mothers Day. An outdoor cinema event also showcased the versatility of the park, and helped to reframe the stereotypical perception of cemeteries. For the third year, we were proud to be a major sponsor of the South Australian Living Artists (SALA) Festival, and hosted an artist-in-residence who created a marble sculpture within the park over a number of months. Additionally, we proudly continued our support of the annual Glendi Greek Festival.
11 GOAL 2 Remain the market leader and maintain our premier position by leveraging our expertise to address new market opportunities New areas—Olive Views, Olive Terrace and Martinique Grove The 2015-2016 financial year saw the completion of Stage 1 of a number of infrastructure projects, all aimed at developing areas of the cemetery to provide a more diverse range of burial options. The reclaimed former workshop site was transformed into the Mediterranean-themed Olive Terrace and Olive Views burial areas, which—for the first time in the park’s history—allow for headstones to be constructed up to 1.8 metres tall. Additionally, the vacant land adjacent Derrick Gardens was converted into Martinique Grove, a staggered-burial garden design, with beautiful magnolia trees as the central focal point. We commenced selling sites in these areas in late 2015, and all now contain interments and pre-need positions.
The feedback we’ve received so far, predominantly through social media, shows that the urns are of great interest to many people as an alternative to traditional urn options and methods of dispersing ashes. Promotional material for the bio urns was developed and has been distributed throughout the local industry. Additionally, we streamlined our supply chain for traditional urn products and are now able to source urns direct from manufacturers. This reduces our supply costs and enables us to pass on savings to our families.
Online memorials During the year, our online memorial facility was completed and introduced as part of a significant redevelopment of the Centennial Park website. Online memorials are becoming increasingly important as society comes to accept and depend on information being held in the digital space. So having the ability to store, view and share memories online, as
well as through physical memorialisation within the park, is sure to please our families. Environmental performance Centennial Park continues to be an industry leader in the reduction of environmental impact. Since 2007-2008 we have completed annual audits of our greenhouse gas (GHG) emissions and purchased certified carbon credits to offset those we can’t eliminate. The last completed audit was for the financial year 2014-2015. Year-on-year emissions decreased in 2014-2015 by -41.0 tonnes of CO2-e, or -3.3% over the prior year, and have decreased by -392.7 tonnes, or -26.5%, since the first audit. A reduction in waste to landfill has been the most significant reason for our progress in this area. However, while this will continue to be a focus, we’re confident that a reduction in our energy usage, particularly electricity, through the installation of additional solar panels, will provide further reductions in our GHG emissions in future.
BIO urns We pride ourselves on our strong commitment to the environment at Centennial Park, and continually look for new environmentally friendly products. During the year we worked with Spanishbased company Limbo-Disseny, creators of a unique range of biodegradable urn products, to establish an exclusive import agreement allowing us to offer their unique, low-impact products to our families. CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
12
Strategic Goals GOAL 3 Be an effective and efficient organisation by integrating our management systems Audit and Risk Management Committee Centennial Parkâ&#x20AC;&#x2122;s Audit and Risk Management Committee comprises three members including independent board members Geoff Vogt and Lisa Bishop, and a qualified independent member appointed by the board. Meeting quarterly, the committee performed the following functions:
n monitor
and review business risk assessment processes and outcomes
n review
n review
n liaise
n monitor
n monitor
adequacy of accounting, internal control, reporting, and other financial policies and systems annual accounts to ensure they accurately represent the activities of the Authority with external auditors regarding the annual accounts, as well as any proposed accounting standard changes the investment of funds
organisation plans and policies, including information technology and records management.
The independent internal auditor, who reviews internal business processes and compliance, and assesses the Authorityâ&#x20AC;&#x2122;s internal controls and associated risks, reports directly to the committee.
National Competition Policy review There has been no change to the method used by Centennial Park to ensure compliance with the National Competition Policy. Cost-reflective pricing remains the most appropriate means of achieving competitive neutrality.
Freedom of Information (FOI) requests and records management There was one FOI request in the 20152016 financial year. Appropriate resources continue to be allocated to ensure we comply with our records-management obligations under the State Records Act.
Cemetery Management System (CMS) enhancements The CMS is a vital part of our systems strategy, ensuring that our processes and information are managed effectively and efficiently. Several components of Stage 2 of the CMS project were completed during 2015-2016, including the delivery of an online booking portal enabling funeral homes to make funeral bookings directly into our system, 24 hours a day. However, there were also delays experienced in relation to a number of other planned CMS works, and these are now scheduled for delivery in 2016-2017
13
Mapping and mobile navigation For many years, we have prided ourselves on the technology we use at Centennial Park. This is particularly the case with our world-leading mapping system, and two important steps were taken during the year to strengthen this competitive advantage. First, our mapping server was upgraded, increasing the speed at which viewable and printable maps are generated. Then additional routing tracks were created in the map data to allow the future development of mobile mapping for customers visiting the cemetery. This exciting advance will ultimately guide park visitors to the exact position of their loved ones as they make their way around the grounds. A new mobile CMS/mapping tool for the delivery of this service was scoped out during 2015-2016, and will be developed in the first quarter of 2016-2017.
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
14
Strategic Goals GOAL 4
The opportunity to develop professionally also plays a key role in employee engagement and satisfaction, which in turn leads to greater workplace productivity.
Be an employer of choice by providing all employees with a safe environment, opportunities for learning and development, and competitive remuneration
As part of the annual performance appraisal process, skill gaps and training needs are determined, and an organisation-wide Learning and Development Plan (L&D Plan) is prepared. Individual goals are regularly updated and the L&D Plan is monitored to ensure all appropriate training is provided.
Learning and development Ongoing professional development is critical to the capacity of Centennial Parkâ&#x20AC;&#x2122;s team to deliver on its strategic goals.
HR metrics Staff level with age & gender profile
Operations
Business & Corporate Services
Client & Information Services
Total
M
F
M
F
M
F
M
F
up to 30
4
1
0
0
1
4
5
5
31-40
4
0
0
3
2
5
6
8
41-50
8
0
1
2
0
3
9
5
51-60
4
0
0
8
0
5
4
13
61 plus
0
0
0
0
0
1
0
1
Total by gender
20
1
1
13
3
18
21
32
Total by department
21
14
21
56
15 Operations
Business & Corporate Services
Client & Information Services
Total
Ongoing full-time
19
9
9
37
Ongoing part-time
1
1
1
3
Fixed-term full-time
0
3
2
5
Fixed-term part-time
0
0
1
1
Casuals
1
1
8
10
Total
21
14
21
56
Operations
Business & Corporate Services
Client & Information Services
Total
0-5
12
8
16
36
6-10
2
2
4
8
11-15
2
2
1
5
16-20
0
1
0
1
21-25
1
1
0
2
26-30
2
0
0
2
31-35
1
0
0
1
35+
1
0
0
1
Total
21
14
21
56
Staff Levels
Years of Service
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
16
Strategic Goals Work Health and Safety In line with a broader culture of care and compassion, Centennial Park takes seriously its responsibility to provide a safe and healthy environment for all staff and visitors. Our goal is to eliminate, where possible, the risk of accident or incident, customer complaints, and work-related injuries. With this in mind, the Work Health Safety and Injury Management (WHS & IM) Plan 2015-2017 was adopted in August 2015. The plan initially contained three key programs: Program 1 – KPI Audit 2014 (close-out of non-conformances and observations) Program 2 – Review Management Systems
Emergency
Program 3 – Review First Aid Systems. A fourth program was later added in March 2016, being the close-out of non-conformances and observations identified in the KPI audit conducted by the Local Government Association Workers Compensation Scheme (LGAWCS) in November 2015.
Centennial Park recognises the importance of ongoing training, both internal and external. The e3Learning platform continues to be a key tool in developing and implementing our internal training programs. As a subscriber, we have access to the full range of training packages provided by e3Learning, and the ability to author and develop training programs to meet our specific needs. Appropriate resources are set aside in order to meet the high standards required by ReturnToWork SA under the guidelines of the Performance Standards for Self-Insurers. These resources include an external consultant and the ongoing development and implementation of the LGAWCS “One System” WHS model. The park’s WHS Committee meets monthly to review and discuss all WHS matters, including statistics, policies and procedures, accident and incident reports, and hazard reports. WHS also remains a standing agenda item for all monthly board, leadership team and department team meetings. The table right summarises our WHS data for the last eight years.
17 Indicator
2016
2015
2014
2013
2012
2011
2010
2009
Number of injuries resulting in lost time at work
0
1
4
5
2
3
5
2
Lost days due to injury
0
73
38
141
16
16
6
7
Number of accident / incidents reported
44
43
49
78
61
74
91
68
Number of hazards reported
12
10
11
14
19
20
25
37
Number of workplace inspections completed
23
23
18
24
22
30
35
36
Number of corrective actions identified in response to workplac inspections
51
68
47
76
44
67
55
39
Attendance record at WHS Committee meetings
96%
89%
90%
93%
83.5%
88%
87.5%
100%
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
18
The Board The Centennial Park Cemetery Authority Board is our main decision-making body and is comprised of seven members â&#x20AC;&#x201D; four representing the constituent councils, and three independents. Each contributes unique skills as well as considerable commercial, not-forprofit and local government experience. This ensures robust discussion, sound strategic decision-making, and high levels of transparency, accountability and corporate governance.
All board members are active in their attendance at meetings and on committees to ensure they keep abreast of industry and other developments for the continual improvement of the park.
During the year ended 30 June 2016, the board held a total of 11 meetings. Attendances were as follows: No. of meetings eligible to attend
Attended
Stephen Hains (Chair)
11
10
Geoffrey Vogt
11
11
Lisa Bishop
11
9
Mark Ward
9
7
Adriana Christopoulos
11
9
Anthony Lapidge
11
11
Luke Smolucha
11
11
Glenn Spear
1
1
Members
19 NEWLY ELECTED BOARD MEMBERS
Stephen Hains
Chair – Appointed July 2012
Anthony Lapidge
City of Unley – Appointed June 2011
Glenn Spear
Appointed June 2016
Lisa Bishop
Adriana Christopoulos
Geoffrey Vogt
Luke Smolucha
Independent – Appointed July 2011
Deputy Chair – Appointed June 2011
OUT-GOING BOARD MEMBERS
City of Mitcham – Appointed Nov. 2014
Mark Ward
City of Unley – Appointed January 2015
City of Mitcham Appointed Novenber 2012 – May 2016
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
20
Annual Accounts
22
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
23
24
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
25
26
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
27
28
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
29
30
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
31
32
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
33
34
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
35
36
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
37
38
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
39
40
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
41
42
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
43
44
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
45
46
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
47
48
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
49
50
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
51
52
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
53
54
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
55
56
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
57
58
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
59
60
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
61
62
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
63
64
CENTENNIAL PARK CEMETERY AUTHORITY | 2015/2016 Annual Report
Annual Report 2015-2016
EAST WASTE PROVIDES AN ENVIRONMENTALLY RESPONSIBLE, EFFECTIVE COLLECTION AND DISPOSAL WASTE AND RECYCLING SERVICE FOR ITS CONSTITUENT COUNCILS.
A TARGET OF
90%
OF ALL BINS ARE RETURNED UPRIGHT AND LIDS CLOSED. AN INDUSTRY FIRST.
ANNUAL REPORT 2015-2016 CONTENTS
5
CHAIRMAN’S REPORT
9
ABOUT EAST WASTE
13
GENERAL MANAGER’S REPORT
15
EAST WASTE GOVERNANCE
17
EAST WASTE OPERATIONS
21
WORK, HEALTH & SAFETY
23
EDUCATION AND PROMOTION
27
FINANCIAL STATEMENT
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
3
EAST WASTEâ&#x20AC;&#x2122;S STRONG RESULT IS ATTRIBUTED TO A NUMBER OF FACTORS WHICH INCLUDE; A CLEAR STRATEGIC DIRECTION, A FOCUSSED EFFORT BY ALL OUR STAFF, THE INTRODUCTION OF OPERATIONAL EFFICIENCIES.
LESS THAN
48
HOURS HAS BEEN THE AVERAGE TARGETED TIME-FRAME TO RESOLVE MISSED BIN ISSUES.
EAST WASTE INDEPENDENT CHAIRPERSON’S REPORT 2015/ 16
It is with great pleasure that I am again able to report on an excellent year for East Waste. East Waste continues to deliver in accordance with its vision of providing a safe, high quality, low cost, waste and resource recovery collection service that responds to our various communities needs. The following highlights for the year provide some background to the outstanding results achieved and General Manager Adam Faulkner will detail other successes and KPI’s achieved during 2015/ 16 in his Report. Strong Financial Position
The metrics used to assess performance were:
The Audited Financial Statements for East Waste
• Annual cost of collection per household serviced;
showed a significant operating surplus for the year of $1.13M. This strong result is attributed to a number of factors which include; a clear strategic direction, a focussed effort by all our staff, the introduction of operational efficiencies, the successful negotiation of longer term
• Bin lift cost rates; • Bin lifts per hour; • Maintenance costs; and • Maintenance time per truck. Overall, at that point in time, East Waste was achieving a good level of performance against industry
supply contracts (purchase of collection vehicles and
benchmarks.
tyre supply), and lower fuel prices continuing to be
Whilst the results were pleasing it is important to
realised.
note that East Waste is committed to a number of
These key efficiencies, prudent management, and execution of the Board’s strategy have contributed greatly to East Waste being able to realise a strong operating surplus, which the East Waste Board has
non-financial “quality service” metrics (at least 90% bins returned upright with lids closed, resolving any missed bins within 48 hours, and resolving any customer interactions within 48 hours) that were not
resolved to distribute back to Member Councils.*
assessed in the study.
Benchmarking
Importantly, the 2015 results did not take into
In the interests of identifying further efficiencies and potentially identifying other innovation for investigation, the Board engaged an independent contractor early in the financial year to undertake a benchmarking study. This would provide a review of East Waste’s operational performance costs and relevant performance measures, and enable East Waste to compare its performance to industry benchmarks.
consideration the commencement of the new recyclables contract which now sees Member Council’s receiving a rebate per tonne for recyclables disposed of. This of course, would significantly improve the cost rates for the collection of recyclables. So while the comparable results were very encouraging, we look forward to the next benchmarking study which will truly reflect the cost savings of the newly entered into recyclables contract and provide a more realistic view of our operational performance in the industry.
*Please refer to Note 7 of the Audited Financial Statements for further information as to how the operating surplus has been returned to Member Councils.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
5
EAST WASTE CONTINUES TO RECEIVE FEEDBACK THAT THE COLLABORATIVE APPROACH UNDERTAKEN TOGETHER WITH IMPROVED COMMUNICATION AND EXTENSIVE CONSULTATION IN THE DEVELOPMENT OF OUR FUTURE PLANS HAS BEEN APPRECIATED BY MEMBER COUNCILS.
LESS THAN
8
YEARS IS THE AGE OF EAST WASTEâ&#x20AC;&#x2122;S FLEET OF TRUCKS.
EAST WASTE INDEPENDENT CHAIRPERSON’S REPORT 2015/ 16 Recyclables Contract
Thanks
In the previous financial year (2014/15) East Waste
East Waste continues to receive feedback that the
was in a final year of a contract for the Receipt and
collaborative approach undertaken together with
Processing of Recyclables whereby East Waste was
improved communication and extensive consultation
paying to dispose of recyclables. After undertaking
in the development of our future plans has been
a robust tender process, in July 2015 East Waste
appreciated by Member Councils. We will continue
entered into a new 10 year contract for the Receipt
to measure our proactivity within the communities
and Processing of Recyclables. The end result of this
of Member Councils and our responsiveness to
work has seen East Waste now receiving a rebate for
community demands.
recyclables disposed of and this income is passed on to the Member Councils proportionally.
Many thanks to Adam Faulkner for his strong and visionary leadership of his team and for his very
Based on recyclables tonnages collected for the
thorough and detailed reporting to the Board. Adam
2015/16 year East Waste has received an income
has made a most significant contribution to the
of $852,519. This income is passed directly onto
performance of East Waste over the past few years.
Member Council’s each month based on the tonnages collected on behalf of their Council area.
To all our staff we say thanks and well done on providing our Member Councils with excellent service,
This is significant outcome for Member Councils.
improving our efficiencies and complementing
Re-branding
the Member Councils’ reputations in each of their
In collaboration with Member Councils and after gathering feedback from stakeholders, the East Waste Board approved a new logo and brand image for East Waste in January 2016. The logo and design (seen throughout the Annual Report) is simple, contemporary, conservative and easily identifiable. The new logo has since been rolled out across East Waste’s fleet, public facing online documents and stationary.
communities with high quality delivery of services. The achievement of the above would not have been possible without the commitment and the astute advice of the Board of East Waste. The members of the Board continue to provide valuable professional support to the General Manager and his team. To all the Directors of East Waste I thank you for your guidance and support to East Waste. We look confidently forward to an even more successful year ahead in 2016/17.
Education and Promotion East Waste’s 10 Year Business Plan identified a
I commend the 2015-2016 East Waste Annual Report to you.
need for East Waste to coordinate and develop a waste minimisation campaign and in a collaborative approach with all Member Councils throughout the 2015/16 year East Waste has developed the “Why waste it?” campaign. This campaign is aimed at educating and promoting responsible behaviour around reducing waste and improving recycling. A suite of resources and communication mediums have now been developed for use by all Member Councils. The resources have been designed utilising the same artwork and consistent messaging in a strong campaign. Examples of the resources can be found at page 22-25 of the report.
Mr Brian Cunningham Independent Chairperson
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
7
EAST WASTEâ&#x20AC;&#x2122;S PRIMARY PURPOSE IS TO PROVIDE EFFECTIVE WASTE COLLECTION SERVICES FOR ITS MEMBER COUNCILS WITH FLEXIBLE SERVICE DELIVERY ALLOWING RESPONSIVENESS TO EMERGING COMMUNITY AND MARKET DEMANDS.
23,403 TONNES SENT FOR RECYCLING AND BENEFICIAL REUSE DURING 2015/16.
ABOUT EAST WASTE
East Waste is the trading name of Eastern Waste Management Authority (East Waste), which was established in 1928. The Authority is a regional subsidiary of the Adelaide Hills Council, City of Burnside, Campbelltown City Council, City of Norwood, Payneham & St Peters, City of Mitcham, and the Corporation of the Town of Walkerville. These six Councils are referred to as Member or
• Enhanced quality of service by measuring and
Constituent Councils of East Waste. East Waste is
valuing quality capacities as well as financial
governed by a Charter pursuant to Section 43 of the
indicators.
Local Government Act 1999 (the Charter).
• Flexibility in service delivery allowing
East Waste is administered by a Board in accordance
responsiveness to emerging community and
with the requirements of the Local Government Act,
market demands.
the Charter, and other various policies and codes. The membership of the Board comprises of seven directors – one director appointed by each of the Member Councils, and one independent person who acts as Chair. The Board appoints a General Manager who is responsible for implementing the decisions made by the Board, and running the day-to-day operations of East Waste. East Waste’s primary purpose is to provide effective waste collection services for its Member Councils. The exact nature of the waste collection services are determined independently by each Council to meet the needs of their respective communities. East Waste operates on a cost share basis between Member Councils. This ensures Councils are not subject to providing varying levels of profit that are required by private sector operators, whilst still benefiting efficiency, buying power and cost
• Aligned values and strategic direction with Member Councils, to protect and promote reputation management. • Reducing exposure of Member Councils to the commercial profit-driven market.
Core Services East Waste’s core business is defined in the Charter as collection, recycling, and disposal of waste produced in the area of one or more of the Member Councils. This core business is undertaken in regard to the following broad understandings: • Continually operate to the parameters set within the Charter. • Deliver efficient, effective and value for money services for Member Councils. • Maintain quality services that are quantified by
effectiveness through East Waste as a service provider.
certain metrics (i.e. >90% of bins returned
From time to time, East Waste is contracted to provide
upright to kerb with lids closed, ensuring any
waste collection services for other Councils (referred
bins that are tipped over are put upright).
to as Client Councils).
• Effective and positive complaint handling and
The primary advantages from the East Waste delivery model can be summarised as: • Appropriate economical return from the at cost
timely resolution of complaints, and; • Vehicles are clean, maintained and well presented.
charging methodology based on GPS cost allocation.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
9
EAST WASTE SERVICE AREA
ADELAIDE HILLS COUNCIL CITY OF BURNSIDE CAMPBELLTOWN CITY COUNCIL CITY OF MITCHAM NORWOOD PAYNEHAM & ST PETERS TOWN OF WALKERVILLE
10
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
VISION STATEMENT
At East Waste we are all about… “Providing a safe, high quality, low cost, waste and resource recovery collection service that responds to our community’s needs, while using innovation and technology to drive efficiencies, reduce cost, and have a minimal impact on the receiving environment”.
At East Waste we are moving towards… “Providing flexible and responsive waste and resource recovery collection services that focus on safety, high order recycling, elevated service levels, less vehicle movements, and lower emissions”.
At East Waste we contribute to our Member Council communities by… “Providing a responsive and proactive waste and resource recovery collection service that enhances streetscape amenity and assists in promoting a healthy lifestyle”.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
11
EAST WASTE NOW PROVIDES A FULLY INTEGRATED AT-CALL HARD WASTE COLLECTION SERVICE FOR FOUR (4) OF ITS MEMBER COUNCILS, WITH MUCH OF THE COLLECTED MATERIAL BEING DIVERTED FROM LANDFILL.
APPROXIMATELY
30%
OF METROPOLITAN ADELAIDE IS CURRENTLY SERVICED BY THE EAST WASTE TEAM.
GENERAL MANAGER’S REPORT
The Eastern Waste Management Authority trading as East Waste has had another fiscally and operationally strong year which has benefitted the Member Councils. A significant operating surplus has been refunded to Member Councils, and prudent management of the Subsidiary has seen Member Councils fees remain below CPI or Local Government Price Index (LGPI) over the reporting year. My thanks go to our dedicated staff – whether they
Plan 2014-2024, it allows East Waste to maximise its
be the hard working drivers collecting the bins
purchasing power for the reasons outlined above.
in the streets, the safety team walking continual
New Member Council Services
improvement through the Subsidiary, or the customer care centre team who take the many calls and are integral in providing a seamless service to our Member Councils communities. We are all one team, with the sole aim of providing a high quality low cost essential waste and recycling collection service to our Member Councils.
Strategic Procurement East Waste’s management team led a significant strategic asset tender procurement program in 2015/2016, emanating in a three (3) year supply agreement for collection vehicles. This longer term contract enabled East Waste to; • Increase its purchasing power • Benefit from a stronger and more mature relationship with the preferred supplier • Benefit from innovation and safety advancements in technology
East Waste’s internal motto of Repeatable Quality. Through the application of Repeatable Quality Member Councils are afforded the best possible quality in the provision of the essential service of waste management and resource recovery. As testament, the City of Burnside and Corporation of the Town of Walkerville both resolved in 15/16 to permanently appoint East Waste as their provider of their at-call hard waste service. East Waste now provides a fully integrated at-call hard waste collection service for four (4) of its Member Councils, with much of the collected material being diverted from landfill.
Operations Assistance Committee East Waste established an Operations Assistance Committee in 2016, with each Member Council appointing a Senior Officer to the Committee. This is the first time an Operations Assistance
• Improve the pricing point for purchase of vehicles
Committee has been established, and it has the aim of discussing and resolving;
of the three (3) years • Provide budgetary certainty
• Any common customer service matters
• Continue a responsible asset replacement program
• Coordination of community education around waste
to maintain a modern fleet of collection vehicles While the collection vehicle asset replacement follows the Board endorsed Asset Management
minimisation and recycling • New services that Member Councils would like East Waste to trial or commence
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
13
GENERAL MANAGER’S REPORT • Share learnings and knowledge
campaign.
This broad communication with Government and the industry allow East Waste to benefit from the most contemporary of industry learnings, but also influence policy where possible to assist in creating a safe and level playing field for all.
However, it was clear that the Operations Assistance
As General Manager, I look forward to implementing
Committee will form a valuable part of the East Waste
the 2016/2017 adopted Annual Plan and Budget, and
shared services subsidiary model.
implementing the strategic and financial intent of the
• Report back to the East Waste Board The inaugural meeting held in March 2016 focussed primarily on terms of reference and the coordination of East Waste’s new waste and recycling education
Consultation
East Waste Board.
Importantly, East Waste is active in many conversations, discussions and working groups around improving the broader waste and recycling sector. East Waste has representation on the Local Government Associations informal waste management working group, the industry peak body association Waste Management Association of Australia, and South Australia’s iconic non-government sustainability educator KESAB Environmental Solutions. East Waste is also active in the EPA Waste Reform Agenda, and the transition of Zero Waste SA to the
Adam Faulkner General Manager
Office of Green Industries.
14
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE GOVERNANCE
East Waste is administered by a Board in accordance with the requirements of the Local Government Act, the Charter, and various other policies and codes. The membership of the Board comprises of seven directors – one director appointed by each of the Member Councils, and one independent person who
Mr Brian Cunningham Independent Chairperson
acts as Chair. The Board appoints a General Manager who is responsible for implementing the decisions made by the Board, and running the day-to-day operations of East Waste.
The Board held five formal meetings over the 2015 – 2016 financial year. The table below details Board Member attendance.
BOARD MEMBER
MEETINGS
Mr Brian Cunningham (Chair)
5 of 5
Cr Linda Green (Adelaide Hills Council)
5 of 5
Cr Grant Piggott* (City of Burnside)
3 of 5
Mr Paul Di Iulio Chief Executive Officer (Campbelltown City Council)
3 of 5
Cr Karen Hockley (City of Mitcham) Appointed to Board 24 November 2014
4 of 5
Mr Mario Barone Chief Executive Officer (City of Norwood, Payneham & St Peters)
5 of 5
Cr Graham Webster (Corporation of the Town of Walkerville) Appointed to Board 24 November 2014
5 of 5
*Resigned from East Waste Board, effective 29 June 2016.
Cr. Linda Green Adelaide Hills Council
Cr. Grant Piggott City of Burnside
Mr Paul Di Iulio Chief Executive Officer Campbelltown City Council
Cr. Karen Hockley City of Mitcham
Mr Mario Barone Chief Executive Officer City of Norwood Payneham & St Peters
Cr. Graham Webster The Corporation of the Town of Walkerville
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
15
AUDIT AND RISK MANAGEMENT COMMITTEE In accordance with the requirements of the Local
The Committee held five formal meetings over the
Government Act 1999, East Waste has an established
2015–2016 financial year.
Audit and Risk Management Committee. The functions of the Committee include:
The Audited Financial Statements for the year ending 30 June 2016 are provided at page 27.
• Reviewing annual financial statements to ensure that they provide a timely and fair view of the state of affairs of the subsidiary; • Liaise with external auditors; and • Reviewing the adequacy of the accounting, internal auditing, reporting and other financial management systems and practices of the subsidiary on a regular basis.
GOVERNANCE STRUCTURE The figure below demonstrates the governance arrangements in place to ensure diligent management of East Waste on behalf of the Member Councils.
MEMBER COUNCILS
BOARD DIRECTORS + INDEPENDENT CHAIRPERSON
AUDIT & RISK MANAGEMENT COMMITTEE
OPERATIONAL COMMITTEE
EAST WASTE
16
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE OPERATIONS
East Waste has an established purpose built depot and office facilities in Ottoway. This depot comprises office buildings, a wash bay and fully equipped workshop. East Waste operates and maintains a fleet of 36 collection vehicles, and employs 51 permanent staff. Recent independent benchmarking undertaken
East Waste currently provides a broad range of
during the 2015/16 financial year relating to the waste
services to Member Councils. This is summarised
collection and disposal services has identified East
in the Services Matrix below. To continue to provide
Waste as being competitive in every metric utilised
good value and efficiency to Member Councils, it is
to attain the results. It was pleasing to note that
important to East Waste to offer all of these current
East Waste was identified as competitive without
services to Member Councils.
consideration being given to a number of operational
This table identifies opportunity for efficient and
efficiencies and initiatives introduced at East Waste,
effective service offerings currently available to
and the exclusion of quality measurements such as
Member Councils, and includes the additional service
>90% of bins returned to the kerbside upright and
offerings taken up by Member Councils since last
with lids closed and an asset maintenance program
year’s (2014/15) Annual Report.
that maintains a fleet age average of less than eight (8) years.
City of Mitcham City of Norwood, Payneham & SP
4 4
4 4
4 4
Corp Town of Walkerville
4
4
4
Education and Promotion
4
Organics Processing
4
4
Recycling Processing
4
4
Waste Disposal
4
Campbelltown City Council
RFID Tracking
City of Burnside
GPS Tracking
4
Bin Repairs/Maintenance/Replacements
4
Customer Service
Fortnightly Collection of Organics
4
Litter Collection
Fortnightly Collection of Recyclables
Adelaide Hills Council
MEMBER COUNCIL
“At Call” Hard Waste
Weekly collection of general waste
SERVICES
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4 PARTIAL
4 4
4 4
4 4
4 4
4 4
4 4
4 4
4 4
4 4
4 4
4
4
4
4
4
4
4
4
4
4
4
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
17
THE DIVERSION RATE ACHIEVED BY MEMBER COUNCILS IS AGAIN AN ENCOURAGING RESULT AND BUILDS ON LAST FINANCIAL YEARâ&#x20AC;&#x2122;S RESULT BUT IS A RESULT THAT CAN STILL BE IMPROVED BY OUR COMMUNITIES.
47,080 TONNES OF WASTE COLLECTED IN OUR 6 MEMBER COUNCILS DURING 2015/16.
TONNAGE DATA Using a frontline fleet of low emission collection
The diversion rate achieved by Member Councils
vehicles, in 2015/2016 a total of 101,314 tonnes of
is again an encouraging result and builds on last
household waste and recyclables was collected from
financial yearâ&#x20AC;&#x2122;s result but is a result that can still
East Waste Member Council households.
be improved by our communities. East Waste in
On average, across all the East Waste Member Councils, that represents an impressive 53.5% diversion from landfill.
collaboration with all its Member Councils have
This equates to over half all of the materials presented by residents in their wheelie bins being recycled and turned into new packaging materials, or composted into products to improve soil health in South Australia.
developed an education and promotion campaign to assist communities in continuing to improve recycling rates. The environmental and financial benefits from separating out household recyclables and organics and placing them in the correct bin are significant, and the waste minimisation education and promotion campaign aims to continue the positive momentum in this area.
KERBSIDE TONNAGE COLLECTED 2015/ 16
RECYCLABLES
ORGANICS
WASTE
ADELAIDE HILLS COUNCIL
3743
3239
7786
CITY OF BURNSIDE
4509
6360
8031
CITY OF MITCHAM
6185
8678
12684 *
NORWOOD PAYNEHAM & ST PETERS
3636
4632
7256
CAMPBELLTOWN CITY COUNCIL
4643
6858
9880
687
1064
1443
TOWN OF WALKERVILLE
*The City of Mitcham manages the collection of waste for its residents.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
19
AS PART OF EAST WASTEâ&#x20AC;&#x2122;S COMMITMENT TO DRIVER AND COMMUNITY SAFETY, EACH COLLECTION VEHICLE IS FITTED WITH FOUR (4) CAMERAS (FRONT, REAR AND SIDES) TO ASSIST DRIVERS WITH THEIR VISION AND ARE EQUIPPED WITH REVERSE SENSOR TECHNOLOGY.
30,831
TONNES OF ORGANIC WASTE COLLECTED FOR RESIDENTS IN OUR MEMBER COUNCILS.
WORK, HEALTH & SAFETY
East Waste Values Safety For East Waste, safety is more than a policy manual or a training session; it’s how East Waste does business. It cannot be denied that it makes good business sense to have management systems that are designed to be suitable to the nature of the business, responsive to the business needs and manage the business’ risks as part of every-day operational practices. East Waste fosters a culture in which safety, health
With such consultation and documentation in place,
and welfare are top priorities; and where all staff
should an East Waste staff member be injured on the
are responsible for looking out for one another.
job a return to work would be achievable. East Waste
Our commitment to safety and care for fellow
values each and every employee and works side by
employees is aimed at improved business results as
side with injured workers in achieving a safe, durable,
well as business continuity and promotion of a safe
quality driven return to work.
workplace.
Collection Vehicle Safety
Audit results
As part of East Waste’s commitment to driver and
East Waste is audited by the Local Government
community safety, East Waste places great value on
Association Workers Compensation Scheme. This
the safety and performance of its fleet of collection
annual audit serves to determine if East Waste
vehicles. To meet this commitment East Waste offers
is meeting the WHS and Injury Management
the following:
performance standards for self-insured organisations. During the LGAWCS WHS Key Performance Indicator Audit 2015 hundreds of documents were reviewed over a two day period. Eleven (11) elements were chosen to be audited, being a sample across all forty six (46) elements. East Waste again achieved an audit score of 100 out of 100. The next audit is due to occur in October 2016.
• An approved independent contractor conducts an annual audit/inspection of the entire East Waste collection fleet; • All collection vehicles are fully integrated with a GPS system that provides the location of the vehicle at all times; • Each collection vehicle is fitted with four (4) cameras (front, rear and sides) to assist drivers with
Return to Work On 1 July 2015 the Return to Work Act 2014 became
their vision;
effective, thereby repealing the previous Workers
• Reverse sensor technology on all vehicles;
Rehabilitation and Compensation Act 1986.
• Daily inspections of vehicles, including tyre
East Waste quickly aligned itself with the associated changes. Staff were briefed on the changes and new procedures adopted and implemented. Those Procedures being; Re-employment Procedure and
inspection; and • The average age of East Waste’s fleet is less than eight (8) years.
Suitable Employment Procedure.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
21
THE CENTRAL QUESTION OF ‘WHY WASTE IT?’ FOCUSES THE CAMPAIGN ON WASTE AVOIDANCE AND INCREASING RESOURCE RECOVERY. THIS IS ENCOURAGED THROUGH THE WASTE HIERARCHY PRINCIPALS OF - AVOID, REDUCE, RE-USE, RECYCLE AND COMPOST AS OPTIONS TO ‘WASTING IT’.
23,403 TONNES OF RECYCLABLES COLLECTED FOR RESIDENTS DURING 2015/ 16.
EDUCATION AND PROMOTION
East Waste’s 10 Year Business Plan identified a need for East Waste to coordinate and develop a waste minimisation campaign and in a collaborative approach with all Member Councils throughout the 2015/16 year East Waste has developed the “Why waste it?” campaign. This campaign is aimed at educating and promoting responsible behaviour around reducing waste and improving recycling. Central to the ‘Why waste it?’ campaign will be a
waste hierarchy principals of - Avoid, Reduce,
website that contains an up to date A-Z guide to assist
Re-Use, Recycle and Compost by highlighting these as
residents in knowing what items go in ‘Which Bin’ and
alternative options to ‘wasting it’. Within the online
how to divert resources from landfill and transform
database a number of alternative options will be
them into reusable and recyclable materials.
listed for various items where there are more than
This easy to use online A-Z Item directory will list
one way to recycle or dispose of the item.
common household items in alphabetical order
The overall campaign will consist of a number of
and indicate ‘Which Bin’ they go by the colour of the
items that member council’s will have access to via
corresponding bin lid.
the website. These items will include artwork for Bus
The central question of ‘Why waste it?’ focuses the campaign on waste avoidance and increasing resource recovery. This is encouraged through the
Shelters, DL Flyers, A4 and A3 Posters, Bin Stickers, No Junk Mail Stickers, Newsletter Banners Ads, Online Web Tiles (ads) and Street Banners.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
23
EDUCATION AND PROMOTION
The Mini-Bin Game will also available for hire through member councils and will serve as a great educational resource to use. A limited range of campaign elements will also be freely available to Schools, TAFE, Uni, Community Centre, Library and other educational facilities.
24
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EDUCATION AND PROMOTION
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
25
FINANCIAL STATEMENT
2015-16 ANNUAL REPORT
FINANCIAL STATEMENT CONTENTS
Certification of Financial Statements
28
Principal Financial Statements Statement of Comprehensive Income
29
Statement of Financial Position
30
Statement of Changes in Equity
31
Statement of Cash Flows
32
Notes to, and forming part of, the Principal Financial Statements Note 1 - Significant Accounting Policies
33
Note 2 - Income
38
Note 3 - Expenses
39
Note 4 - Asset Disposal & Fair Value Adjustments
41
Note 5 - Current Assets
42
Note 6 - Infrastructure, Property, Plant & Equipment
43
Note 7 - Liabilities
45
Note 8 - Reconciliation of Cash Flow Statement
46
Note 9 - Financial Instruments
47
Note 10 - Expenditure Commitments
49
Note 11 - Uniform Presentation of Finances
50
Note 12 - Related Party Information
51
Note 13 - Key Management Personnel
52
Note 14 - Highbury Landfill Authority Inc
53
Note 15 - Events Occurring After Reporting Date
54
Certification of Auditor Independence
55
Statement by Auditor
56
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
27
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-16
CERTIFICATION OF FINANCIAL STATEMENTS
28
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-16
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 2016
2015
Notes
$
$
User charges
2
12,573,410
13,086,802
Investment income
2
36,129
42,728
Other income
2
381,540
878,601
12,991,079
14,008,131
4,803,231
4,837,731
INCOME
Total Income EXPENSES Employee costs
3
Materials, contracts & other expenses
3
6,267,459
6,879,259
Depreciation, amortisation & impairment
3
1,595,423
1,754,292
Finance costs
3
334,865
405,851
13,000,978
13,877,133
(9,899)
130,998
Total Expenses OPERATING SURPLUS / (DEFICIT) Asset disposal & fair value adjustments
4
37,882
7,002
Income tax equivalent charge
2
-
(4,574)
27,984
133,426
27,984
133,426
NET SURPLUS / (DEFICIT) transferred to Equity Statement TOTAL COMPREHENSIVE INCOME
This Statement is to be read in conjunction with the attached Notes.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
29
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 2016
2015
Notes
$
$
Cash and cash equivalents
5
2,797,570
2,096,194
Trade & other receivables
5
ASSETS Current Assets
Total Current Assets
358,583
248,589
3,156,153
2,344,783
5,332,461
6,793,005
5,332,461
6,793,005
8,488,614
9,137,788
Non-current Assets Infrastructure, property, plant & equipment
6
Total Non-current Assets Total Assets
LIABILITIES Current Liabilities Trade & other payables
7
1,869,862
908,090
Borrowings
7
1,416,593
1,099,894
Provisions
7
608,909
694,002
3,895,364
2,701,986
Total Current Liabilities
Non-current Liabilities Borrowings
7
4,373,852
6,103,149
Provisions
7
69,398
55,891
4,443,250
6,159,040
8,338,614
8,861,026
150,000
276,762
Accumulated Surplus
150,000
276,763
TOTAL EQUITY
150,000
276,763
Total Non-current Liabilities
Total Liabilities NET ASSETS
EQUITY
This Statement is to be read in conjunction with the attached Notes.
30
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Accumulated
TOTAL
Surplus
EQUITY
$
$
Balance at end of previous reporting period
276,763
276,763
Net Surplus / (Deficit) for Year
27,984
27,984
Notes 2016
Contributed equity Distribution to councils Balance at end of period
14
122,018
122,018
1
(276,765)
(276,765)
150,000
150,000
2015 Balance at end of previous reporting period Net Surplus / (Deficit) for Year Contributed equity Balance at end of period
21,319
21,319
133,426
133,426
122,018
122,018
276,763
276,763
This Statement is to be read in conjunction with the attached Notes.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
31
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 2016
2015
$
$
13,720,757
14,092,717
36,129
42,728
Notes CASH FLOWS FROM OPERATING ACTIVITIES Receipts User charges Investment receipts Payments Employee costs Materials, contracts & other expenses Finance payments
(4,874,817)
(4,722,033)
(6,062,903)
(6,940,334)
(390,947)
(405,851)
(62,503)
-
2,365,717
2,067,227
39,049
71,455
Other payments Net Cash provided by (or used in) Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Receipts Sale of replaced assets Sale of surplus assets
66,441
-
122,018
122,018
Expenditure on renewal/replacement of assets
(202,487)
(1,992,154
Distribution to councils
(276,764)
(4,574)
(251,743)
(1,803,255)
-
1,743,400
Capital contributed by members Payments
Net Cash provided by (or used in) Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Receipts Proceeds from borrowings Payments Repayments of borrowings Repayment of finance lease liabilities Net Cash provided by (or used in) Financing Activities
(88,622)
(370,052)
(1,323,976)
(1,307,153)
(1,412,598)
66,195
701,376
330,167
Net Increase (Decrease) in cash held Cash & cash equivalents at beginning of period
8
2,096,194
1,766,027
Cash & cash equivalents at end of period
8
2,797,570
2,096,194
This Statement is to be read in conjunction with the attached Notes.
32
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The financial statements cover Eastern Waste Management Authority Inc as an individual entity. Eastern Waste Management Authority Inc is an association incorporated in South Australia under the SA Local Government Act 1999 and has its principal place of business at 1 Temple Court Ottoway SA. 1
Basis of Preparation
1.1 Compliance with Australian Accounting Standards This general purpose financial report has been prepared in accordance with Australian Accounting Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting Standards Board, Interpretations and relevant South Australian legislation. 1.2 Historical Cost Convention Except as stated below, these financial statements have been prepared in accordance with the historical cost convention. 1.3 Critical Accounting Estimates The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying Authority’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are specifically referred to in the relevant sections of this Note. 2
The Local Government Reporting Entity
Eastern Waste Management Authority Inc (“The Authority’’) is a Regional Subsidiary formed under Section 43 of the Local Government Act 1999, under the control of the City of Burnside, City of Norwood, Payneham & St Peters, Campbelltown City Council, Corporation of the Town of Walkerville, City of Mitcham and Adelaide Hills Council. The Charter was reviewed as required by the Local Government Act 1999 and a revised Charter was gazetted on 29 November 2012. The six Member Councils have an equal equity share and the Board comprises a Director from each Council and an Independent Chair appointed by the absolute majority of Member Councils. 3
Income recognition
Income is measured at the fair value of the consideration received or receivable. Income is recognised when the Authority obtains control over the assets comprising the income, or when the amount due constitutes an enforceable debt, whichever first occurs. 4
Cash, Cash Equivalents and other Financial Instruments
Cash Assets include all amounts readily convertible to cash on hand at Authoriy’s option with an insignificant risk of changes in value with a maturity of three months or less from the date of acquisition. All receivables are reviewed as at the reporting date and adequate allowance made for amounts the receipt of which is considered doubtful.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
33
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) 5
Infrastructure, Property, Plant & Equipment
5.1 Initial Recognition All assets are initially recognised at cost. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. 5.2 Materiality Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by the Authority for each type of asset. In determining (and in annually reviewing) such thresholds, regard is had to the nature of the asset and its estimated service life. No capitalisation threshold is applied to the acquisition of land or interests in land. 5.3 Depreciation of Non-Current Assets All infrastructure, property, plant and equipment assets recognised are systematically depreciated over their useful lives on a straight-line basis which, in the opinion of the Authority, best reflects the consumption of the service potential embodied in those assets. Depreciation methods, useful lives and residual values of classes of assets are reviewed annually. The depreciable amount of all fixed assets including building and capitalised lease assets, is depreciated on a straight-line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Plant and Equipment
5% - 40%
Building and other structures
5% - 20%
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. 5.4 Impairment Assets that have an indefinite useful life are not subject to depreciation and are reviewed annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount (which is the higher of the present value of future cash outflows or value in use). 5.5 Borrowing Costs The amounts of borrowing costs recognised as an expense or as part of the carrying amount of qualifying assets are disclosed in Note 3, and the amount (if any) of interest revenue offset against borrowing costs in Note 2.
34
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) 6
Payables
6.1 Goods & Services Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts. 6.2 Payments Received in Advance & Deposits Amounts received from external parties in advance of service delivery, and security deposits held against possible damage to Authority assets, are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be. 7
Borrowings
Loans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of “Payables”. 8
Employee Benefits
8.1 Salaries, Wages & Compensated Absences Liabilities for employees’ entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months of reporting date are accrued at nominal amounts (including payroll based oncosts) measured in accordance with AASB 119. Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as the present value of the estimated future cash outflows (including payroll based oncosts) to be made in respect of services provided by employees up to the reporting date. No accrual is made for sick leave as Authority experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting periods. Authority does not make payment for untaken sick leave. Annual Leave has this year been disclosed under Provisions for the first time. In previous year, Annual Leave has been disclosed under Trade & Other Payables. Comparative information has been amended for comparability purposes and this has resulted in no change in the comparative financial position of performance of the Authority. 8.2 Superannuation The Authority makes employer superannuation contributions in respect of its employees to the Local Government Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently. No changes in accounting policy have occurred during either the current or previous reporting periods. 9
Leases
Lease arrangements have been accounted for in accordance with AASB 117. In respect of finance leases, where the Authority substantially carries all of the risks incident to ownership, the leased items are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
35
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) The assets are disclosed within the appropriate asset class, and are amortised to expense over the period during which the Authority is expected to benefit from the use of the leased assets. Lease payments are allocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease. In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident to ownership of the leased items, lease payments are charged to expense over the lease term. 10 GST Implications In accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax” > Receivables and Creditors include GST receivable and payable. > Except in relation to input taxed activities, revenues and operating expenditures exclude GST receivable and payable. > Non-current assets and capital expenditures include GST net of any recoupment. > Amounts included in the Statement of Cash Flows are disclosed on a gross basis. 11 Distribution to Member Council The Board of the Authority approved the payment of a distribution to the Member Councils during the 2015/16 financial year totalling $276,765. This has been treated a capital distribution to each Member Council in accordance with each Council’s respective percentage ownership in the Authority. 12 Competitive Neutrality The Authority undertakes commercial (for profit) activities being the collection and disposal of domestic waste on behalf of non member councils. This non core business constitutes a significant business activity of the Authority, as such, for the purposes of the national competition policy, it is an activity to which the principles of competitive neutrality will apply. The Authority recognises the objective of competitive neutrality as the intention to remove any net competitive advantages from its commercial (for profit) activities. Accordingly, the Authority is implementing principles of competitive neutrality, in particular tax equivalents and debt guarantee fees, where it competes with the private sector. These tax equivalents include: 1.1 payroll tax; 1.2 stamp duty; 1.3 council rates; 1.4 fuel excise; 1.5 Work Cover levies; 1.6 prevailing commercial interest rates applicable to the purchase of operating plant; 1. 7 debt guarantee fees, where required; 1.8 standard interest rates on borrowings; 1.9 income tax The Authority will annually and proportionately disburse to its member councils, the equivalent of all of the costs referred to above together with the equivalent of company taxation on the net profit derived from its commercial (for profit) activities. The disbursements made to the member councils will not and are not intended to be directly or indirectly returned to the Authority.
36
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONT) In bidding for the new commercial (for profit) business activities, the Authority will fully account for all costs including all taxes, licences, fees, charges and guarantees that are applicable to the private sector operating in the same market place, unless all bidders are both equally directed to do otherwise and have the benefit of all exemptions to which the Authority is entitled. The Authority has obtained and will maintain for its commercial (for profit) activities a prescribed activity license from the Environment Protection Authority for the collection or transport of waste from domestic premises on behalf of non member councils. 13 Pending Accounting Standards Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2016 reporting period and have not been used in preparing these reports. AASB 7
Financial Instruments â&#x20AC;&#x201C; Disclosures
AASB 9
Financial Instruments
AASB 124
Related Party Disclosures
Standards containing consequential amendments to other Standards and Interpretations arising from the above - AASB 2010-7, AASB 2014-1, AASB 2014-3, AASB 2014-4, AASB 2014-5, AASB 2014-6, AASB 2014-7, AASB 2014-8, AASB 2014-9, AASB 2014-10, AASB 2015-1, AASB 2015-2, AASB 2015-3, AASB 2015-4, AASB 2015-5, AASB 2015-6 and AASB 2015-7. (Standards not affecting local government have been excluded from the above list.) Authority is of the view that none of the above new standards or interpretations will affect any of the amounts recognised in the financial statements, but that they may impact certain information otherwise disclosed. The Australian Accounting Standards Board is currently reviewing AASB 1004 Contributions. It is anticipated that the changes resulting from this review may have a material effect on the timing of the recognition of grants and contributions, but the financial consequences cannot be estimated until a revised accounting standard is issued. Accounting Standard AASB 16 Leases may have a material effect on the amounts disclosed in these reports, particularly in relation to Infrastructure, Property, Plant & Equipment, but does not commence until the 2019/20 financial period, and it is not Authorityâ&#x20AC;&#x2122;s intention to adopt this Standard early.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
37
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 2 - INCOME 2016
2015
$
$
Household refuse
4,181,142
3,853,511
Administration
208,896
202,812
Green organics
3,435,168
3,089,855
Recyclables
3,191,626
3,910,422
Notes USER CHARGES
Hardwaste
517,743
361,775
Litter
265,352
233,959
Waste disposal
773,483
1,402,234
-
32,234
12,573,410
13,086,802
34,986
40,561
1,143
2,167
36,129
42,728
Bin supply
100,537
485,995
Replacement bins
107,305
128,471
Sundry
173,698
264,135
381,540
878,601
-
(4,574 )
-
(4,574 )
Recycling
INVESTMENT INCOME Interest on investments Local Government Finance Authority Banks & other
OTHER INCOME
INCOME TAX EQUIVALENT CHARGE Income tax equivalent charge TOTAL INCOME TAX EQUIVALENT CHARGE
38
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 3 - EXPENSES Notes
2016
2015
$
$
3,742,055
3,552,355
(71,586)
218,599
EMPLOYEE COSTS Salaries and Wages Employee leave expense Superannuation
374,463
278,110
Wages casual agency
492,527
563,945
Workers’ Compensation Insurance
171,779
157,318
Other
93,992
67,404
4,803,231
4,837,731
49
50
8,300
8,000
Board Fees
23,850
23,850
Operating Lease Rentals - cancellable leases
78,158
28,233
110,308
60,083
1,901,250
2,264,004
Dumping fees
16,643
343,514
Energy
34,954
25,997
734,665
957,456
GPS expenses
49,555
36,512
Insurance
24,989
24,164
Total Operating Employee Costs Total Number of Employees (Full time equivalent at end of reporting period) MATERIALS, CONTRACTS & OTHER EXPENSES Prescribed Expenses Auditor’s Remuneration - Auditing the financial reports
Subtotal - Prescribed Expenses Other Materials, Contracts & Expenses Disposal fees
Fuel, gas & oil
Maintenance
1,209,543
1,522,552
Legal Expenses
18,093
31,974
Parts, accessories & consumables
43,066
45,799
Printing, stationary, postage & courier
38,272
33,829
-
40,041
223,970
185,164
41,959
21,005
Processing costs Professional services Promotion & advertising Rebate to member councils Registration & insurance - trucks Sorting fees Sundry Telephone Subtotal - Other Materials, Contracts & Expenses
1,138,215
-
222,129
260,155
-
676,537
424,326
308,785
35,522
41,688
6,157,151
6,819,176
6,267,459
6,879,259
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
39
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 3 - EXPENSES (CONT) 2016
2015
$
$
7,645
7,163
1,587,778
1,747,129
1,595,423
1,754,292
331,384
403,637
3,481
2,214
334,865
405,851
Notes DEPRECIATION, AMORTISATION & IMPAIRMENT Depreciation Buildings & Other Structures Plant, Machinery & Equipment
FINANCE COSTS Interest on Loans Charges on Finance Leases
40
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 4 - ASSET DISPOSAL & FAIR VALUE ADJUSTMENTS 2016
2015
$
$
Proceeds from disposal
39,051
64,453
Less: Carrying amount of assets sold
50,822
57,451
(11,771)
7,002
Proceeds from disposal
66,441
-
Less: Carrying amount of assets sold
16,788
-
Gain (Loss) on disposal
49,653
-
NET GAIN (LOSS) ON DISPOSAL OF ASSETS
37,882
7,002
Notes INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT Assets renewed or directly replaced
Gain (Loss) on disposal Assets surplus to requirements
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
41
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 5 - CURRENT ASSETS Notes
2016
2015
$
$
CASH & EQUIVALENT ASSETS Cash on Hand at Bank
1,509,899
643,681
1,287,671
1,452,513
2,797,570
2,096,194
357,593
247,599
Short Term Deposits & Bills, etc
TRADE & OTHER RECEIVABLES Debtors - general Prepayments Total Less: Allowance for Doubtful Debts
42
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
990
990
358,583
248,589
-
-
358,583
248,589
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 6 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT
2015 $ At Fair Value
At Cost
Accum Dep’n
Carrying Amount
Buildings & Other Structures
-
75,115
(24,712)
50,403
Plant, Machinery & Equipment
-
12,873,515
(6,130,913)
6,742,602
Total Infrastructure, Property, Plant & Equipment
-
12,948,630
(6,155,625)
6,793,005
Comparatives
-
19,463,465
(12,843,869)
6,619,596
2016 $ At Fair Value
At Cost
Accum Dep’n
Carrying Amount
Buildings & Other Structures
-
81,935
(36,759)
45,176
Plant, Machinery & Equipment
-
11,814,253
(6,526,968)
5,287,285
Total Infrastructure, Property, Plant & Equipment
-
11,896,188
(6,563,727)
5,332,461
Comparatives
-
12,948,630
(6,155,625)
6,793,005
This note continues on the following page.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
43
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 6 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT (CONT)
2015
CARRYING AMOUNT MOVEMENT DURING YEAR
$ Carrying Amount
$ Additions
$ Disposals
$ Depreciation
New/Upgrade
Renewels
50,403
2,418
-
-
(7,645)
6,742,602
-
200,070
(67,609)
(1,587,778)
Total Infrastructure, Property, Plant & Equipment
6,793,005
2,418
200,070
(67,609)
(1,595,423)
Comparatives
6,619,596
1,992,154
-
(64,453)
(1,754,292)
Buildings & Other Structures Plant, Machinery & Equipment
2016
CARRYING AMOUNT MOVEMENT DURING YEAR
$ Impairment
44
$ Transfers In
Out
$ Net Revaluation
$ Carrying Amount
Buildings & Other Structures
-
-
-
-
45,176
Plant, Machinery & Equipment
-
-
-
-
5,287,285
Total Infrastructure, Property, Plant & Equipment
-
-
-
-
5,332,461
Comparatives
-
-
-
-
6,793,005
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 7 - LIABILITIES Notes TRADE & OTHER PAYABLES Goods & Services
2016
2015
$
$
Current
Non-current
Current
Non-current
745,638
-
516,030
-
1,252,036
-
101,796
-
157,878
-
-
-
4,574
-
1,869,862
-
908,090
-
94,797
325,893
61,009
448,303
1,321,796
4,047,959
1,038,885
5,654,846
1,416,593
4,373,852
1,099,894
6,103,149
Accrued expenses - rebate to member councils Accrued expenses - other Other
BORROWINGS Loans Finance Leases
10
All interest bearing liabilities are secured over the future revenues of the Authority.
PROVISIONS Annual leave entitlements (including oncosts)
171,263
-
254,977
-
Long service leave entitlements (including oncosts)
437,646
69,398
439,025
55,891
608,909
69,398
694,002
55,891
As a result of operational efficiency initiatives implemented and resulting savings achieved, the Authority has recorded a liability in Note 7 to reflect the rebate payable to Member Councils on waste management fees charged to Member Councils in the 2015/16 financial year. The rebate will be paid to the Member Councils in the 2016/17 financial year.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
45
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 8 - RECONCILIATION TO CASH FLOW STATEMENT (a) Reconciliation of Cash Cash Assets comprise highly liquid investments with short periods to maturity subject to insignificant risk of changes of value. Cash at the end of the reporting period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows: 2016
2015
Notes
$
$
Total cash & equivalent assets
5
2,797,570
2,096,194
Less: Short-term borrowings
7
-
-
2,797,570
2,096,194
27,984
133,426
Balances per Cash Flow Statement
(b) Reconciliation of Change in Net Assets to Cash from Operating Activities Net Surplus (Deficit) Non-cash items in Income Statement Depreciation, amortisation & impairment
1,595,423
1,754,292
Net increase (decrease) in unpaid employee benefits
(71,586)
115,698
Net (Gain) Loss on Disposals
(37,882)
(7,002)
1,513,939
1,996,414
Net (increase) decrease in receivables
(109,994)
123,036
Net (increase) decrease in inventories
-
4,278
961,772
(61,075)
2,365,717
2,062,653
1,000,000
1,000,000
Add (Less): Changes in Net Current Assets
Net increase (decrease) in trade & other payables Net Cash provided by (or used in) operations
(d) Financing Arrangements Unrestricted access was available at balance date to the following lines of credit: GFA Cash Advance Debenture facility
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.
46
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 9 - FINANCIAL INSTRUMENTS All financial instruments are categorised as loans and receivables. Accounting Policies - Recognised Financial Instruments Accounting Policy: Carried at lower of cost and net realiseable value; Interest is recognised when earned.
Bank, Deposits at Call, Short Term Deposits
Terms & conditions: Deposits are returning fixed interest rates between 1.75% and 1.85% (2015: 2% and 2.05%). Carrying amount: Approximates fair value due to the short term to maturity.
Accounting Policy: Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Authority.
Liabilities Creditors and Accruals
Terms & conditions: Liabilities are normally settled on 30 day terms. Carrying amount: Approximates fair value.
Liabilities Interest Bearing Borrowings
Accounting Policy: Carried at the principal amounts. Interest is charged as an expense as it accrues. Terms & conditions: Secured over future revenues, borrowings are repayable (describe basis); interest is charged at fixed rates between 4.25% and 7.01% (2015: 4.25% and 7.01%) Carrying amount: Approximates fair value.
Liabilities - Finance Leases
Accounting Policy: Accounted for in accordance with AASB 117.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
47
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 9 - FINANCIAL INSTRUMENTS (CONT) Liquidity Analysis Total Due > 1 year;
Contractual
Carrying
Due < 1 year
< 5 years
Due > 5 years
Cash Flows
Values
$
$
$
$
$
2,797,570
-
-
2,797,570
2,797,570
358,583
-
-
358,583
358,583
3,156,153
-
-
3,156,153
3,156,153
516,030
-
-
516,030
516,030
2016 Financial Assets Cash & Equivalents Receivables Total Financial Liabilities Payables Current Borrowings
1,688,503
-
-
1,688,503
1,321,796
-
4,545,647
290,556
4,836,203
4,047,959
2,204,533
4,545,647
290,556
7,040,736
5,885,785
2,096,194
-
-
2,096,194
2,096,194
248,589
-
-
248,589
248,589
2,344,783
-
-
2,344,783
2,344,783
745,638
-
-
745,638
745,638
Non-Current Borrowings Total 2015 Financial Assets Cash & Equivalents Receivables Total Financial Liabilities Payables Current Borrowings
1,700,074
-
-
1,700,074
1,038,885
-
4,974,068
1,510,869
6,484,937
5,654,846
2,445,712
4,974,068
1,510,869
8,930,649
7,439,369
Non-Current Borrowings Total
Net Fair Value All carrying values approximate fair value for all recognised financial instruments. There is no recognised market for the financial assets of the Authority. Risk Exposures Credit Risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financial assets of the Authority is the carrying amount, net of any allowance for doubtful debts. All Authority investments are made with the SA Local Government Finance Authority and are guaranteed by the SA Government. Market Risk is the risk that fair values of financial assets will fluctuate as a result of changes in market prices. All of Authorityâ&#x20AC;&#x2122;s financial assets are denominated in Australian dollars and are not traded on any market, and hence neither market risk nor currency risk apply.
48
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 9 - FINANCIAL INSTRUMENTS (CONT) Liquidity Risk is the risk that Authority will encounter difficulty in meeting obligations with financial liabilities. In accordance with the model Treasury Management Policy (LGA Information Paper 15), liabilities have a range of maturity dates. Authority also has available a range of bank overdraft and standby borrowing facilities that it can access. Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Authority has a balance of both fixed and variable interest rate borrowings and investments. Cash flow fluctuations are managed holistically in seeking to minimise interest costs over the longer term in a risk averse manner
NOTE 10 - COMMITMENTS FOR EXPENDITURE 2016
2015
$
$
Not later than one year
1,566,485
1,639,065
Later than one year and not later than 5 years
4,179,592
4,525,765
290,556
1,510,859
Minimum lease payments
6,036,633
7,675,689
Less: future finance charges
(666,878)
(981,958)
Net Lease Liability
5,369,755
6,693,731
Notes Finance Lease Commitments Commitments under finance leases at the reporting date are as follows:
Later than 5 years
Representing lease liabilities: Current
1,321,796
1,038,885
Non-Current
4,047,959
5,654,846
5,369,755
6,693,731
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
49
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 11 - UNIFORM PRESENTATION OF FINANCES The following is a high level summary of both operating and capital investment activities of the Authority prepared on a simplified Uniform Presentation Framework basis. All Councils in South Australia have agreed to summarise annual budgets and long-term financial plans on the same basis. The arrangements ensure that all Councils provide a common ‘core’ of financial information, which enables meaningful comparisons of each Council’s finances
2016
2015
$
$
Income
12,991,079
14,008,131
less Expenses
13,000,978
13,877,133
(9,899)
130,998
Operating Surplus / (Deficit)
less Net Outlays on Existing Assets Capital Expenditure on renewal & replacement of Existing Assets Depreciation, Amortisation & Impairment
202,487
1,992,154
(1,595,423)
(1,754,292)
(39,049)
(71,455)
Proceeds from Sale of Replaced Assets
(1,431,985)
166,407
less Net Outlays on New and Upgraded Assets Proceeds from Sale of Surplus Assets (including investment property and real estate developments)
Net Lending / (Borrowing) for Financial Year
50
(66,441)
(66,441)
-
1,488,528
(35,409)
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 12 â&#x20AC;&#x201C; RELATED PARTY INFORMATION A new charter for East Waste was gazetted on 29 November 2012. Under this Charter, Directors are not paid by East Waste and the newly appointed Independent Chair is paid by East Waste. The remuneration set by the Board is $20,000 per annum. Board Members Mr. P DiIulio Appointed to the Board of East Waste for a term of two (2) years from the date of the gazettal of new charter 29 November 2012. Reappointed in December 2014. Cr G Piggott* Appointed to the Board of East Waste for a term of two (2) years from 17 September 2012. Reappointed in December 2014. Mr. M Barone Appointed to the Board of East Waste for a term of two (2) years from the date of the gazettal of new charter 29 November 2012. Reappointed in December 2014. Cr K Hockley Appointed to the Board of East Waste for a term of two (2) years from 25 November 2014. Cr G Webster Appointed to the Board of East Waste for a term of two (2) years from 24 November 2014. Cr L Green Appointed to the Board of East Waste in February 2013. Reappointed in November 2014. Mr B Cunningham Appointed as independent chairman of the Board of East Waste in March 2013. Reappointed in June 2015.
*Cr G Piggott resigned from the Board on 29 June 2016
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
51
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 13 â&#x20AC;&#x201C; KEY MANAGEMENT PERSONNEL The table below summarises in aggregate the remuneration of all senior management personnel and Board Members of the Eastern Waste Management Authority Inc.
Salary
Super
Non-Cash
Allowances
ETP
Total
$
$
$
$
$
$
2016
144,852
14,287
-
12,000
-
171,139
2015
128,827
13,523
-
12,000
-
154,350
Board Member Compensation Independent Chairperson - $20,000 (2015: $20,000) Independent Audit Committee Members - $3,850 (2015: $3,850)
52
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 14 â&#x20AC;&#x201C; HIGHBURY LANDFILL AUTHORITY INC The Eastern Waste Management Authority, originally known as the East Torrens Municipal Destructor Trust, was established on 19 July 1928 (the name change took place in 1993). As at 1 July 2004, the Eastern Waste Management Authority comprised 3 member Councils, being the City of Norwood, Payneham and St Peters, the City of Burnside and the Corporation of the Town of Walkerville. On 5 August 2004, the City of Norwood, Payneham and St Peters, the City of Burnside and the Corporation of the Town of Walkerville established the Highbury Landfill Authority Inc. Its purpose included the facilitation of the closure and the post- closure of the Highbury Landfill site, as well as managing the joint interests and liability of the Councils in relation to the closure of the site. On 31 December 2004 the property known as the Highbury Landfill site was transferred from East Waste to Highbury Landfill Authority Inc. On 1 January 2005 the Eastern Waste Management Authority Inc. Charter was amended to include the three new member Councils - the City of Mitcham, the City of Campbelltown and Adelaide Hills Council. On 1 January 2005 a loan was created between East Waste and the Highbury Landfill Authority that represented the net value of assets in East Waste prior to 1 January 2005. This was an At Call Loan and interest had been capitalised until the loan was called in by the Highbury Landfill Authority in November 2008. The loan amount was $873,000 and East Waste borrowed the money from the National Australia Bank with an Interest Only Loan. This loan has now been re-financed through the Local Government Finance Authority, to be repaid in 10 years. The Board of East Waste resolved in February 2010 to charge Member Councils the loan repayments for this loan in their equity percentages as set out in the January 2005 charter.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
53
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 15 â&#x20AC;&#x201C; EVENTS OCCURRING AFTER REPORTING DATE In accordance with AASB 110, there were no events subsequent to 30 June 2016 that need to be disclosed in the financial statements.
54
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
CERTIFICATION OF AUDITOR INDEPENDENCE
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
55
EAST WASTE MANAGEMENT AUTHORITY INC. FINANCIAL STATEMENT 2015-2016
STATEMENT BY AUDITOR
56
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
NEW HARD RUBBISH COLLECTION CAMPAIGN
WHO IS EAST WASTE? • A REGIONAL SUBSIDIARY ESTABLISHED UNDER THE LOCAL GOVERNMENT ACT 1999 SIX MEMBER COUNCILS. • PURPOSE IS TO COLLECT AND DISPOSE/RECYCLE MEMBER COUNCILS WASTES AND RECYCLABLES. • PROVIDE APPROXIMATELY 180,000 SERVICES PER WEEK. • SERVICES APPROXIMATELY 30% OF METRO ADELAIDE. • BOARD OF DIRECTORS & INDEPENDENT CHAIRMAN. • EAST WASTE HAS A GENERAL MANGER AND 51 PERMANENT STAFF MEMBERS. • PURPOSE BUILT DEPOT, FUEL SUPPLY, SELF-SUFFICIENT WORKSHOP AND ADMINISTRATION CENTRE.
EASTERN WASTE MANAGEMENT AUTHORITY - ANNUAL REPORT 2015-2016
57
APPROXIMATELY
180,000 BINS COLLECTED PER WEEK, EVERY WEEK, EACH DAY OF THE WEEK (BAR TWO).
1 Temple Court Ottoway SA 5013 PO Box 26 Mansfield Park SA 5012 Phone 08 8347 5111 Fax 08 8240 3244 Email east@eastwaste.com eastwaste.com.au
This report is printed on Revive Laser, an Australian made, 100% recycled paper. Revive Laser is also certified Greenhouse FriendlyTM by the Australian Government’s Department of Climate Change. Pulp is Process Chlorine Free (PCF) and helps divert waste from Australian landfill sites. Australian Paper is an ISO 14001 certified which utilises renewable energy sources.
Copies of the 2015/16 Annual Report are available for inspection at the: • City of Mitcham Civic Centre, 131 Belair Road, Torrens Park • Blackwood Library, 215 Main Road, Blackwood • Mitcham Library, 154 Belair Road, Hawthorn • www.mitchamcouncil.sa.gov.au Copies can be purchased from the City of Mitcham Customer Service Centre, 131 Belair Road, Torrens Park for $11.40.
City of Mitcham Civic Centre 131 Belair Road, TORRENS PARK SA 5062 Postal address: PO Box 21, Mitcham Shopping Centre, Torrens Park SA 5062 Telephone:
08 8372 8888
Facsimile:
08 8372 8101
Internet: http://www.mitchamcouncil.sa.gov.au Email: mitcham@mitchamcouncil.sa.gov.au Emergency after hours: 08 8366 0588 Opening hours
Monday to Friday (excluding public holidays) from 9 am to 5 pm