Lithgow City Councilarchive.lithgow.nsw.gov.au/agendas/16/1110/ITEM1-3...“A centre of regional excellence that: - encourages community growth and development, - contributes to the

Lithgow City Council SPECIAL SCHEDULES for the year ended 30 June 2016

“A centre of regional excellence that: - encourages community growth and development, - contributes to the efficient and effective management of the environment, community and economy for present and future generations.”

Special Schedules 2016

page 1

Lithgow City Council

Special Schedules for the year ended 30 June 2016

Contents

Special Schedules1

Net Cost of Services

Statement of Long Term Debt (all purposes)Statement of Internal Loans (Sect. 410(3) LGA 1993)

Water Supply Operations – incl. Income StatementWater Supply – Statement of Financial Position

Sewerage Service Operations – incl. Income StatementSewerage Service – Statement of Financial Position

Notes to Special Schedules 3 and 5

Report on Infrastructure Assets

Permissible Income Calculation

1 Special Schedules are not audited (with the exception of Special Schedule 8).

Background

These Special Schedules have been designed to meet the requirements of special purpose users such as;

the NSW Grants Commissionthe Australian Bureau of Statistics (ABS),the NSW Office of Water (NOW), andthe Office of Local Government (OLG).

The financial data is collected for various uses including;

the allocation of Financial Assistance Grants,the incorporation of Local Government financial figures in national statistics,the monitoring of loan approvals,the allocation of borrowing rights, andthe monitoring of the financial activities of specific services.

Special Schedule 5 9

Page

2

4

5

Special Schedule 1

Special Schedule 2(a)n/a

Special Schedule 4

Special Schedule 2(b)

Special Schedule 38

14Special Schedule 7

13

12

(ii)

(i)

Special Schedule 8 19

Special Schedule 6


page 2


Special Schedule 1 – Net Cost of Services for the year ended 30 June 2016

$’000

Governance

Administration

Public order and safety

Beach controlEnforcement of local government regulationsAnimal controlOtherTotal public order and safety

Health

EnvironmentNoxious plants and insect/vermin controlOther environmental protectionSolid waste managementStreet cleaningDrainageStormwater managementTotal environment

Community services and educationAdministration and educationSocial protection (welfare)Aged persons and disabledChildren’s servicesTotal community services and education

Housing and community amenitiesPublic cemeteriesPublic conveniencesStreet lightingTown planningOther community amenitiesTotal housing and community amenities

Water supplies

Sewerage services

(36)

154 –

–

58 (23)

(559)

–

1,276

(393) –

255

–

19

(962)

(4,105)

(393)

– 667

–

559 451

3,747

4,936 –

–

–

667

230

– –

190

– –

4,692

260

Net cost.of services.

(640) –

(272)

(213)

(677) –

(359) 10 – 369

– – 221

(202)

–

–

36

Function or activity

–

Fire service levy, fire protection, emergency services

–

–

– 542

398

749

196

271 243 (669)

– (338)

221

485

– 28

2,279 –

–

477

–

130

587

6,691

753

–

(3,206)

(130) (230)

(539) –

– 255

–

–

–

–

454 3,660

–

3

19 –

7,843

–

7,523 7,000

58

– –

Expenses from. continuing. operations. Non-capital.

1,502

–

– 238

Capital.

Income fromcontinuing operations

641

147

120 –

3,843

1,389

4,201

143


page 3


Special Schedule 1 – Net Cost of Services (continued) for the year ended 30 June 2016

$’000

Recreation and culturePublic librariesMuseumsArt galleriesCommunity centres and hallsPerforming arts venuesOther performing artsOther cultural servicesSporting grounds and venuesSwimming poolsParks and gardens (lakes)Other sport and recreationTotal recreation and culture

Fuel and energy

Agriculture

Mining, manufacturing and constructionBuilding controlOther mining, manufacturing and constructionTotal mining, manufacturing and const.

Transport and communicationUrban roads (UR) – localUrban roads – regionalSealed rural roads (SRR) – localSealed rural roads (SRR) – regionalUnsealed rural roads (URR) – localUnsealed rural roads (URR) – regionalBridges on UR – localBridges on SRR – localBridges on URR – localBridges on regional roadsParking areasFootpathsAerodromesOther transport and communicationTotal transport and communication

Economic affairsCamping areas and caravan parksOther economic affairsTotal economic affairs

Totals – functionsGeneral purpose revenues (1)

NET OPERATING RESULT (2)

(1) Includes: rates and annual charges (including ex gratia, excluding water and sewer), non-capital general purpose (2) As reported in the Income Statement

grants, interest on investments (excluding externally restricted assets) and interest on overdue rates and annual charges

Share of interests – joint ventures and associates using the equity method

191

–

–

–

(627)

(168)

–

Net cost.of services.

–

–

(1,543)

–

–

1,277

–

(2,220) (723)

17,343

1,626 –

–

(1,392) –

6,958

– (465) (943)

2,788

2,840

–

(14,503) (877)

–

(4,553) (5,667)

(877)

–

–

–

–

– –

1,756

– –

–

(3,374)

– 1

–

Capital.

118

–

2,250

943

– – –

– 465

– –

– –

–

–

29

56

–

–

–

2,092 300 744 1,965

–

–

Non-capital.

–

Expenses from. continuing. operations.

724

656 893

–

23

– –

–

–

–

–

–

–

–

–

– 2,808

–

2,368 6,318 2,228 8

576

– –

Function or activity

–

249

–

–

–

– –

–

–

–

– –

6,958

–

–

–

– –

–

– 319

–

5,986 – – –

–

20

– –

3,113

45,528

–

10,250 2,584

1,020 1,020

41,410

143

– –

17,343 45,528

143

–

24,067

399

116

–

Income fromcontinuing operations

– – –


page 4


Special Schedule 2(a) – Statement of Long Term Debt (all purpose) for the year ended 30 June 2016

$’000

Spe

pag

Notes: excludes (i) internal loans and (ii) principal inflows/outflows relating to loan re-financing. This schedule is prepared using the face value of debt obligations, rather than fair value (which are reported in the GPFS).

Loans (by source)Commonwealth government

Current

– – – – – – –

Transfers to sinking

funds

Principal outstandingInterest

applicable for year TotalNon-current

at the end of the year

– –

Principal outstanding New loans raised during the year

at beginning of the year

Classification of debtCurrent Non-current Total

–

– – –

– – –

–

–

– – – – –

19,985

1,958

18,027

– –

– –

Debt redemption during the year

From revenue

Sinking funds

–

1,910 – –

929 –

929

18,075

490

–

–

–

1,420 16,607 – –

1,468 – – –

– Other state government 489 1,959 2,448 – –

– – – – –

Treasury corporation490

Public subscription – –

– – – – –

–

Financial institutions 1,274 18,071 19,345 – –

– –

–

–

– 1,808 – – –

1,318

1,763 20,030 Total loans–

21,793 Other

– – – Other long term debtRatepayers advances – – –

– Government advances – Finance leases –

– – – – –

– –

– – – –

– – –

1,910

– – –

19,985

– – –

18,075

–

929 –

–

–

– Deferred payments

– –

1,763

–

20,030

– – – – Total long term debt – –

Total debt

–

21,793

–

– 1,808


page 5


Special Schedule 3 – Water Supply Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– dams and weirsa. Operation expensesb. Maintenance expenses

– Mainsc. Operation expensesd. Maintenance expenses

– Reservoirse. Operation expensesf. Maintenance expenses

– Pumping stationsg. Operation expenses (excluding energy costs)h. Energy costsi. Maintenance expenses

– Treatmentj. Operation expenses (excluding chemical costs)k. Chemical costsl. Maintenance expenses

– Otherm. Operation expensesn. Maintenance expenseso. Purchase of water

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

–

– – 1,647

– –

–

1,302

60 –

98 –

107

–

–

119 98

1,489

– –

1,465 – 20

175

36

– 8 28

61

458

37

231

480

93

– 53

33 31

488 628

267

–

409 371

2016

–

475

53

1,311

1,186 635 395

Actuals 2015

–

7,852 6,495

Actuals


page 6


Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

Income

6. Residential chargesa. Access (including rates)b. Usage charges

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Extra charges

9. Interest income

10. Other income10a. Aboriginal Communities Water and Sewerage Program

11. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

12. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

13. Total income

14. Gain (or loss) on disposal of assets

15. Operating result

15a. Operating result (less grants for acquisition of assets)

(51)

– –

–

– 95 86

–

117

– –

– –

41 –

1,045

–

5,279

2016Actuals Actuals

(1,089)

–

12

(972)

–

73

6,880

–

–

(51)

–

5,121 1,421

34

–

2015

6,444

–

–


page 7


Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

B Capital transactionsNon-operating expenditures

16. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

17. Repayment of debt

18. Totals

Non-operating funds employed

19. Proceeds from disposal of assets

20. Borrowing utilised

21. Totals

C Rates and charges

22. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

23. Number of ETs for which developer charges were received

24. Total amount of pensioner rebates (actual dollars)

2016

188

– –

595 571 7,142

524

Actuals

7,193

–

–

–

857

–

835

–

2015

–

– –

–

Actuals

123

857 –

449 58

445 59

– ET– ET

-$ 175,600$


page 8


Special Schedule 4 – Water Supply Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2016

$’000

ASSETS25. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

26. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

27. Inventories

28. Property, plant and equipmenta. System assetsb. Plant and equipment

29. Other assets

30. Total assets

LIABILITIES31. Bank overdraft32. Creditors

33. Borrowings

34. Provisionsa. Tax equivalentsb. Dividendc. Other

35. Total liabilities

36. NET ASSETS COMMITTED

EQUITY37. Accumulated surplus38 Asset revaluation reserve39. TOTAL EQUITY

Note to system assets:40. Current replacement cost of system assets41. Accumulated current cost depreciation of system assets42. Written down current cost of system assets

–

1,221 1,360 139

29,205 3,841

708 1,221

432

– –

–

–

–

–

14,051

30,425

91,470 (61,045)

18,995

33,046

33,046

1,929

432

– –

–

123

– –

145

–

30,426

149

– –

–

4,549

30,426

34,975

149

– 137

Non-current

–

– – – –

–

137

–

–

123

–

–

2,696 –

–

–

1,436

Actuals Current

– –

Actuals

– –

145

– –

–

Actuals Total

–

– –

30,426

2,696

1,436 –


page 9


Special Schedule 5 – Sewerage Service Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– mainsa. Operation expensesb. Maintenance expenses

– Pumping stationsc. Operation expenses (excluding energy costs)d. Energy costse. Maintenance expenses

– Treatmentf. Operation expenses (excl. chemical, energy, effluent and biosolids management costs)g. Chemical costsh. Energy costsi. Effluent managementj. Biosolids managementk. Maintenance expenses

– Otherl. Operation expensesm. Maintenance expenses

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

Actuals 2016

Actuals 2015

–

1,729

87 843 248 281

–

344 – 56

53

475

6,999 6,421

102 – –

– –

–

1,019

505 714

– –

–

–

– – –

9 –

– 468 1,259

–

74

– 542

320

1,365 –

475

73 239

1,152

–

336

–

652


page 10


Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

Income

6. Residential charges (including rates)

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Trade waste chargesa. Annual feesb. Usage chargesc. Excess mass chargesd. Re-inspection fees

9. Extra charges

10. Interest income

11. Other income11a. Aboriginal Communities Water and Sewerage Program

12. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

13. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

14. Total income

15. Gain (or loss) on disposal of assets

16. Operating result

16a. Operating result (less grants for acquisition of assets)

– –

– –

– –

– – – –

–

–

–

1,277 290

590

393 –

88 89 687 –

8,276 6,711

–

290

67 –

40 35 – –

– –

136

444 – –

144

311

6,140

Actuals

6,413

Actuals 20152016


page 11


Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2016

$’000

B Capital transactionsNon-operating expenditures

17. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

18. Repayment of debt

19. Totals

Non-operating funds employed

20. Proceeds from disposal of assets

21. Borrowing utilised

22. Totals

C Rates and charges

23. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

24. Number of ETs for which developer charges were received

25. Total amount of pensioner rebates (actual dollars)

1,757 2,074

– 953 1,166

–

445

–

591

39

– ET

-$

676

– –

Actuals Actuals 2016 2015

–

–

423 434

6,745

–

–

–

161,411$

–

434 399

40

– ET

6,789


page 12


Special Schedule 6 – Sewerage Service Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2016

$’000

ASSETS26. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

27. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

28. Inventories

29. Property, plant and equipmenta. System assetsb. Plant and equipment

30. Other assets

31. Total assets

LIABILITIES32. Bank overdraft33. Creditors

34. Borrowings

35. Provisionsa. Tax equivalentsb. Dividendc. Other

36. Total liabilities

37. NET ASSETS COMMITTED

EQUITY38. Accumulated surplus39. Asset revaluation reserve40. TOTAL EQUITY

Note to system assets:41. Current replacement cost of system assets42. Accumulated current cost depreciation of system assets43. Written down current cost of system assets

Actuals

2,803

467

Actuals

– – –

– –

Non-current Current

2,803 – –

–

204

Total Actuals

– –

3,533

–

42 –

– –

–

42 – –

204

–

– – –

–

–

467

63,390

17

– –

17

–

–

66,923

63,390

63,390

–

11,798

–

–

10,934 864

–

25,311

63,390

108,704 (45,314)

29,399

54,710

52,456

256

2,254

–

256

– –

– –

–

1,279 10,934

159

– –

54,710

12,213

159 – –


page 13


Notes to Special Schedules 3 and 5 for the year ended 30 June 2016

Administration (1) Engineering and supervision (1)

(item 1a of Special Schedules 3 and 5) comprises the following: (item 1b of Special Schedules 3 and 5) comprises the following:

• Administration staff: • Engineering staff:− Salaries and allowance − Salaries and allowance− Travelling expenses − Travelling expenses− Accrual of leave entitlements − Accrual of leave entitlements− Employment overheads. − Employment overheads.

• Meter reading • Other technical and supervision staff:− Salaries and allowance

• Bad and doubtful debts − Travelling expenses− Accrual of leave entitlements

• Other administrative/corporate support services − Employment overheads.

Operational expenses (item 2 of Special Schedules 3 and 5) comprise the day to day operational expensesexcluding maintenance expenses.

Maintenance expenses (item 2 of Special Schedules 3 and 5) comprise the day to day repair and maintenanceexpenses. (Refer to Section 5 of the Local Government Asset Accounting Manual regarding capitalisationprinciples and the distinction between capital and maintenance expenditure).

Other expenses (item 4c of Special Schedules 3 and 5) includes all expenses not recorded elsewhere.

Revaluation decrements (item 4b of Special Schedules 3 and 5) is to be used when I,PP&E decreases in FV.

Impairment losses (item 4d and 4e of Special Schedules 3 and 5) are to be used when the carrying amount ofan asset exceeds its recoverable amount (refer to page D-31).

Aboriginal Communities Water and Sewerage Program (item 4f of Special Schedules 3 and 5) is to beused when operation and maintenance work has been undertaken on behalf of the Aboriginal CommunitiesWater and Sewerage Program. Similarly, income for item 11a of Special Schedule 3 and item 12a of SpecialSchedule 5 are for services provided to the Aboriginal Communities Water and Sewerage Program and is notpart of Council’s water supply and sewerage revenue.

Residential charges (2) (items 6a, 6b and item 6 of Special Schedules 3 and 5 respectively) include all incomefrom residential charges. Item 6 of Schedule 3 should be separated into 6a access charges (including rates ifapplicable) and 6b usage charges.

Non-residential charges (2) (items 7a, 7b of Special Schedules 3 and 5) include all income from non-residentialcharges separated into 7a access charges (including rates if applicable) and 7b usage charges.

Trade waste charges (item 8 of Special Schedule 5) include all income from trade waste charges separatedinto 8a annual fees, 8b usage charges and 8c excess mass charges and 8d re-inspection fees.

Other income (items 10 and 11 of Special Schedules 3 and 5 respectively) include all income not recordedelsewhere.

Other contributions (items 12c and 13c of Special Schedules 3 and 5 respectively) including capital contributionsfor water supply or sewerage services received by Council under Section 565 of the Local Government Act .

Notes:(1) Administration and engineering costs for the development of capital works projects should be reported as part of the capital cost of the project and not as part of the recurrent expenditure (ie. in item 16 for water supply and item 17 for sewerage, and not in items 1a and 1b).

(2) To enable accurate reporting of residential revenue from usage charges, it is essential for councils to accurately separate their residential (item 6) charges and non-residential (item 7) charges.


page 14


Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2016 as at 30 June 2016

$’000

31%9% 40%

Assets in condition as a percentage of gross replacement cost

Carryingvalue

41,924

100%10,018 0%

18,664

12,181

0.0%

40% 31%

Data not assessed yet

0%

–

– 1,825 0.0%

202,542 – 36.8%

structures

78 33.0% 18.7%

Bulk earthworks 20%

62.5%

10%0%

9%

41,924

9,606

–

100,158 14.2%

7,384 12,181

Unsealed roads

–

– – –

Buildings

554

–

554

3,105 267

Bridges

9,606

158,935 9,554

14,488

21

80%

100.0%

Sealed roads

Other structuresSub-total

Asset class

to bring assetsEstimated cost

2015/16to bring to the 2015/16 Gross

standard maintenanceAsset categoryRequired Actual replacement

cost (GRC)maintenanceato satisfactory

Estimated cost

agreed level ofservice set by

Council

– 2,780

40%

100%

Roads

Other

Sub-total0%

2,780

4

14%100,158 0%1,825 23%3,788

5

Buildings – specialised

3

23.3%63%

–

20%

373 577

239,444 20,555

3,321 20% 0%

0%

0.0%

15,281

74 Footpaths

Sub-total

31%9%

0.0%–

3,788

242 20

300,862 3,902 7,745 4,823

0.0%

6,717

– 130 158

1,408 10%

8.1%

15,281 0.0%

3.3%


page 15


Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2016 (continued) as at 30 June 2016

$’000

Notes:a Required maintenance is the amount identified in Council’s asset management plans.

Infrastructure asset condition assessment ‘key’

Excellent No work required (normal maintenance) Condition Description here…Good Only minor maintenance work required Condition Description here…Average Maintenance work required Condition Description here…Poor Renewal required Condition Description here…Very poor Urgent renewal/upgrading required Condition Description here…

4321 6

10987

377,132 –

–

Assets in condition as a percentage of gross replacement cost

31.0%

7.2%39,756 13,767 10,854 653,826 12.1% 23.7% 41.1%TOTAL – ALL ASSETS 15.9%

– – 41 6,942 0.0%assets Sub-total

Sub-total–

2,635

3,259

Swimming pools

1,043 22,821

6,942

Carryingvalue

100,150 62,836

30,330

15.0%

4

Stormwater drainage10.0% 15.0%75.0%

100%

95 0.0%183

Data not assessed yet 41 0.0% 0.0% 0.0% 100.0%6,480 –

0%

recreational

0%15%

28% 11%

23,414 183 95

28.0%

832 39,058

11.0%2,635

30,330

62,836

2,473 5,578

75%23,414

6,480 Open space/

– drainage 39,058 Sub-total 0.0%Stormwater

–

Asset category

2,473

Asset class

2015/16Estimated costto bring to the

–

service set byCouncil

network –

Sewerage network

Sub-total

22,821 100,150 1,043 31% 15%

18.0%2.0%

3replacement

5

GrossEstimated cost

0%Water supply network

to satisfactorystandard

to bring assets

3,259

maintenanceaActualRequired

2015/16agreed level of

0.0%54.0%26.0%91,375

1cost (GRC)maintenance

26%91,375 54% 18%

2

2%

15%

5

832

network

Water supply 5,578

Sewerage 15.0%

10%


page 16


Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2016

$ ’000

Infrastructure asset performance indicators * consolidated

1. Infrastructure renewals ratioAsset renewals (1)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratioEstimated cost to bring assets to a satisfactory standardCarrying value of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Capital expenditure ratioAnnual capital expenditureAnnual depreciation

Notes

* All asset performance indicators are calculated using the asset classes identified in the previous table.

(1) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

0.79 0.76 0.9713,767

0.81 0.93 1.41

Indicator Prior periods

39,756 10.89% 9.37% 11.45%364,951

2016 2016 2015 2014

5,858 53.84% 102.83% 142.10%10,881

Amounts

9,903 12,280

10,854


page 17



Benchmark: ――― Minimum >=100.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

Benchmark: ――― Maximum 1.00 Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

Benchmark: ――― Minimum >1.10 Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #24 Ratio is outside benchmark

2015/16 Ratio 0.81 x

2015/16 Ratio 53.84%

Compares actual vs. required annual

asset maintenance. A ratio above 1.0

indicates Council is investing enough funds to stop the

infrastructure backlog growing.

Purpose of capital expenditure ratio

Purpose of asset renewals ratio

This ratio showswhat proportion the backlog is against

the total valueof a Council’s infrastructure.

To assess the extent to which a Council is expanding its asset

base thru capital expenditure on both new assets and the

replacement and renewal of existing

assets.

To assess the rate at which these assets are being renewed

relative to the rate at which they are depreciating.

Purpose of infrastructure backlog ratio

Purpose of asset maintenance ratio

2015/16 Ratio 10.89%

2015/16 Ratio 0.79 x

188% 142%

103% 54%

0%

50%

100%

150%

200%

2013 2014 2015 2016

Rat

io %

1. Infrastructure renewals ratio

11.0% 11.5% 9.4% 10.9%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

2013 2014 2015 2016

Rat

io %

2. Infrastructure backlog ratio

0.85 0.97 0.76 0.79

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2013 2014 2015 2016

Rat

io (x

)

3. Asset maintenance ratio

1.77 1.41

0.93 0.81

0.000.200.400.600.801.001.201.401.601.802.00

2013 2014 2015 2016

Rat

io (x

)

4. Capital expenditure ratio


page 18



$ ’000

Infrastructure asset performance indicatorsby fund

1. Infrastructure renewals ratioAsset renewals (2)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratioEstimated cost to bring assets to a satisfactory standardCarrying value of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Capital expenditure ratioAnnual capital expenditureAnnual depreciation

Notes

(1) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

(2) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

18.39% 36.32% 4.18%prior period: 18.00% 26.67% 4.27%

prior period: 0.66 0.85 0.99

0.76 0.40 0.93prior period: 0.31 0.79 0.93

0.54 0.81 0.84

39.97% 55.12% 55.87%prior period: 0.00% 0.00% 146.55%

Water Sewer General (1)

2016 2016 2016


page 19


Special Schedule 8 – Permissible Income Calculation for the year ended 30 June 2017

$’000

Notional general income calculation (1)

Last year notional general income yieldPlus or minus adjustments (2)

Notional general income

Permissible income calculation

Special variation percentage (3)

Or rate peg percentageOr crown land adjustment (incl. rate peg percentage)

Less expiring special variation amountPlus special variation amount

Or plus rate peg amountOr plus Crown land adjustment and rate peg amount

Sub-total

Plus (or minus) last year’s carry forward totalLess valuation objections claimed in the previous yearSub-total

Total permissible income

Less notional general income yieldCatch-up or (excess) result

Plus income lost due to valuation objections claimed (4)

Less unused catch-up (5)

Carry forward to next year

Notes

(1) The notional general income will not reconcile with rate income in the financial statements in the correspondingyear. The statements are reported on an accrual accounting basis which include amounts that relate to prior years’rates income.

(2) Adjustments account for changes in the number of assessments and any increase or decrease in land value occurringduring the year. The adjustments are called ‘supplementary valuations’ as defined in the Valuation of Land Act 1916 .

(3) The ‘special variation percentage’ is inclusive of the rate peg percentage and where applicable Crown land adjustment.

(4) Valuation objections are unexpected changes in land values as a result of land owners successfully objecting to theland value issued by the Valuer-General. Councils can claim the value of the income lost due to valuation objections inany single year.

(5) Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils will have anominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

(6) Carry forward amounts which are in excess (an amount that exceeds the permissible income) require ministerial approval by order published in the NSW Government Gazette in accordance with section 512 of the Local Government Act 1993 . The OLG will extract these amounts from Council’s Special Schedule 8 in the financial data return (FDR) to administer this process.

(1) 28 12,192 12,504

12,193 12,476

0.00% 0.00%2.40% 1.80%0.00% 0.00%

– – – –

(7) (0)

293 225 – –

12,485 12,729

(2) – (9) (0)

12,729

12,476 12,732

a

(0) (3)

Calculation Calculation2015/16 2016/17

– –

(0) (3)

– –

12,476

lm

n = (l + m)

o = k + n

g

k = (c + g + h + i + j)

b

def

j = c x fi = c x e

h = d x (c – g)

c = (a + b)

pq = o – p

rs

t = q + r – s


page 20


Special Schedule 8 – Independent Auditors Report for the year ended 30 June 2017

Report on Special Schedule 8

Responsibility of Council for Special Schedule 8

Auditors’ responsibility

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

We have audited the accompanying special purpose financial statement comprising the reconciliation of total permissible general income (Special Schedule 8) of Lithgow City Council for the year ending 30 June 2017.

The Council is responsible for the preparation and fair presentation of Special Schedule 8 in accordance with the Local Government Code of Accounting Practice and Financial Reporting (Guidelines) Update No. 23. This responsibility includes the maintenance of adequate accounting records and internal controls designed to prevent and detect fraud and error; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of Special Schedule 8 that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on Special Schedule 8 based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether Special Schedule 8 is free from material misstatement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in Special Schedule 8. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of Special Schedule 8, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of Special Schedule 8.

Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Australian Auditing Standards.

In making our risk assessments, we consider internal controls relevant to the entity’s preparation of Special Schedule 8 in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.


page 21

Audit opinion

Basis of accounting

FIRM NAME

Partner Name here…Partner

Dated at Sydney this XXth day of Xxxxxxxxx, 2015

Without modifying our opinion, we advise that this schedule has been prepared for distribution to the Office of Local Government for the purposes of confirming that Council’s reconciliation of Council’s total permissible general income is presented fairly. As a result, the schedule may not be suitable for another purpose.

In our opinion, Special Schedule 8 of Lithgow City Council for 2016/17 is properly drawn up in accordance with the requirements of the Office of Local Government and in accordance with the books and records of the Council.

SS – Front CoverSS – Table of ContentsSpecial Schedule 1Special Schedule 2aSpecial Schedule 3Special Schedule 4Special Schedule 5Special Schedule 6NotesSpecial Schedule 7 (mandatory)Special Schedule 7 – RatiosSpecial Schedule 8 (Calc)Special Schedule 8 (Audit)

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