Albury City Council

Albury City CouncilAlbury City Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2010

SPFS 2010

Albury City Council

Special Purpose Financial Statements for the financial year ended 30 June 2010

Contents of the Notes accompanying the Financial Statements

page 13


Details

Summary of Significant Accounting Policies

Water Supply Business Best Practice Management disclosure requirements

Note Page

1

2

aa

bb

Sewerage Business Best Practice Management disclosure requirements cc3

page 13

SPFS 2010

Albury City Council

Income Statement of Council's Water Supply Business Activity for the financial year ended 30 June 2010

$ '000

Income from continuing operations

Access charges

User charges

Interest

Grants and contributions provided for non capital purposes

Other income

Total income from continuing operations

Expenses from continuing operations

Employee benefits and on-costs

Borrowing costs

Materials and contracts

Depreciation and impairment

Water purchase charges

Calculated taxation equivalents

Other expenses

Total expenses from continuing operations

Surplus (deficit) from Continuing Operations before capital amounts

Grants and contributions provided for capital purposes

Surplus (deficit) from Continuing Operations after capital amounts

Surplus (deficit) from Discontinued Operations

Surplus (deficit) from ALL Operations before tax

less: Corporate Taxation Equivalent (30%) [based on result before capital]

SURPLUS (DEFICIT) AFTER TAX

plus Opening Retained Profits

plus/less: Prior Period Adjustments

plus Adjustments for amounts unpaid:

- Taxation equivalent payments

- Debt guarantee fees

- Corporate taxation equivalent

less:

- Tax Equivalent Dividend paid

- Surplus dividend paid

Closing Retained Profits

Return on Capital %

Subsidy from Council

Calculation of dividend payable:

Surplus (deficit) after taxless: Capital grants and contributions (excluding developer contributions)

Surplus for dividend calculation purposes

Potential Dividend calculated from surplus

161,148

-

12,507

156,712

-1.5%

(1,743)

-

(1,743) (2,773)

-

158,415

-

-

-

-

(2,773)

-

(3,066)

-

1,132 1,024

(1,743) (2,773) (3,066)

(3,066)

161,148

11,028

1,155

-

102

-

-

(663)

-

(166)

-

40

(4,221)

-2.0%

158,415

-2.0%

(624)

14,168

-

-

-

(3,066)

-

(2,773)

-

-

40

- -

1,975 2,381

479

169

32 18

6,807 7,667 6,538

1,082 1,175 1,414

660

4,840 4,850

112

1,371

246

245 200

155

96

487

-

-

1,210

40

-

4,812

102

10,542

(1,743)

(627)

-

3,476 2,899 2,811

-

164,278

10,335

(2,875) (3,797)

Actual

5,137 4,085 3,760

Actual

2009

Actual

2008 2010

2,034

40

524

page 3

SPFS 2010

Albury City Council

Income Statement of Council's Sewerage Business Activity for the financial year ended 30 June 2010

$ '000


Access charges

User charges

Interest


Other income




Borrowing costs




Debt guarantee fee (if applicable)

Other expenses





Surplus (deficit) from discontinued operations










less:

- Tax Equivalent Dividend paid

- Surplus dividend paid


Return on Capital %


Calculation of dividend payable:

Surplus (deficit) after taxless: Capital grants and contributions (excluding developer contributions)

Surplus for dividend calculation purposes

Potential Dividend calculated from surplus

119,782

7,149

1.0%

908 1,034

(778)

981

-

10,625

-

(1,529)

(184)

117,071

2,437

2,437

184

126

85

63

517 102

115,359

0.9%

203

(313)

55

-

-

-

-

454

-

117,071

1,347

981

2,522

2,240

282

918

613

12,073

12,355

126

1,981

124 66

2009

8,834

Actual

2,325

2010

1,531

1,347

2,522

(85)

3,280

162

1,831

126

115,359

-

- -

530 298

8,154 7,777

3,023

65

-

981

-

1,794

76

Actual

893

9,553

1,335

55 63

3,327

2,709

2008

1,784

Actual

3,423

1,124

2,076

(541)

3,504

2,197

981

114,238

65

3.0%

75

158

1,531

126

(518)

75

1,499

969

10,166 10,107

172

984

6,849

page 4

SPFS 2010

Albury City Council

Income Statement of Council's Other Business Activities for the financial year ended 30 June 2010

$ '000


Access charges

Fees

Interest

Other income




Borrowing costs




Debt guarantee fee (if applicable)

Other expenses














add:

- Subsidy Paid/Contribution To Operations

less:

- TER dividend paid

- Dividend paid


Return on Capital %


10,642

0.3% 47.1%

4,087

97.0%

-

2,207

- 282

-

-

556

- -

103

-

26 26

-

26

1,298

26

1,573

1,854 608

5,224

218

-

2,207

426

-

779

30

-

43

5,040

(182)

-

-

-

-

182

420

43

4,358

1,236

267

4,401

10,496

103

-

1,611

33

377

509

94

312

312

312

-

10,642

117

(94)

758

4,912

1,250

117

1,947

437

43

(13) (556)

13

- -

3,781

375

1,854

1,854

-

608

608

-

-

239

28

3,173

552 319

3,186

399

552

1,812

33

1,922

168

-

-

4,861

11

4,134

Actual

8

2010

Actual

2009

Actual Actual

2009 2010

-

3,769

12

-

4,985

-

Airport Operations Albury Landfill

3.6%

11,099

28

921

page 5

SPFS 2010

Albury City Council


$ '000


Fees


Other income







Other expenses















add:


less:

- TER dividend paid

- Dividend paid


Return on Capital %


41

- -

(2,442) (1,947) 43

206

-27.5% -24.0% -12.4%

41

270

62 - - 64

805 708 87

579

-

41 2

-

- -

-

-

2

-

54

555

614

- 5

56

Cemetery

CrematoriumBanjora Child Care

2009

Actual Actual

862 820

-

2010

820 862

-

(536) (464)

1,356 1,326

(88)

(88) (90)

702

2010

Actual

2009

572

-

-

-

Actual

2

240

628

593

245 36 36

718

(90) (88)

- -

-

127 126

-

(536) (464)

-

(1,947) (1,524)

41

-

- -

- -

(88)

217 131

(90)

- -

85

-

2

131

(464) (536)

- -

-

(90) (536)

-

(464)

-

-13.0%

635 571

page 6

SPFS 2010

Albury City Council


$ '000


Fees

Other income







Other expenses















add:


less:

- TER dividend paid

- Dividend paid


Return on Capital %


1,343 1,707

-

(436)

(683)

- -

(961)

Actual Actual

Albury

Entertainment

Centre

2010 2009

1,354 1,715

11 8

549 543

83 85

1,115 1,250

13 14

131

2,037 2,151

277 259

(436)

-

-

(683) (436)

-

(683)

(291)

-6.1% -5.6%

1,251 871

-

-

14

-

-

-

-

(436)

(683)

(291)

- -

13

page 7

SPFS 2010

Albury City Council

Balance Sheet of Council's Water Supply Business Activity as at 30 June 2009

$ '000

ASSETS

Current Assets

Investments

Receivables

Inventories

Total Current Assets

Non-Current Assets

Investments

Infrastructure, property, plant and equipment

Other

Total non-Current Assets

TOTAL ASSETS

LIABILITIES

Current Liabilities

Payables

Provisions

Total Current Liabilities

Non-Current Liabilities

Provisions

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY

Retained earnings

Revaluation reserves

Council equity interest

TOTAL EQUITY194,379

194,379 191,991 191,991

37,667

792

Actual

2009

Actual

2010

1,652 1,462

190,670

33,576

163

188,855

- -

3,161 2,932

329 332

188,882

195,171

-

- 15

88

3,642 4,501

222

522 430

792

192,524

533

270

194,379 191,991

156,712 158,415

15

518

187,198

page 8

SPFS 2010

Albury City Council

Balance Sheet of Council's Sewerage Business Activity as at 30 June 2009

$ '000

ASSETS

Current Assets

Cash and cash equivalents

Receivables

Inventories


Non-Current Assets

Investments


Total non-Current Assets

TOTAL ASSETS

LIABILITIES

Current Liabilities

Bank Overdraft

Payables

Interest bearing liabilities

Provisions




Provisions


TOTAL LIABILITIES

NET ASSETS

EQUITY

Retained earnings



TOTAL EQUITY

17

163,539 158,951

168,598 163,516

117,071

152,394

77

17,234

1,228

14,688

-

32,612

768

146,282 152,394

29,211

14,461

152,394 146,282

13

142

161,866 157,864

1,286

373 402

-

1,743 2,533

5,059 4,565

-

1,087 1,673

2010 2009

4,601 4,550

Actual Actual

441

15

14,461 14,701

119,782

146,282 16,204

page 9

SPFS 2010

Albury City Council

Balance Sheet of Council's Other Business Activities as at 30 June 2009

$ '000

ASSETS

Current Assets


Receivables


Non-Current Assets

Investments


Total Non-Current Assets

TOTAL ASSETS

LIABILITIES

Current Liabilities

Payables


Provisions




Provisions


TOTAL LIABILITIES

NET ASSETS

EQUITY

Retained earnings



TOTAL EQUITY

2,517

1,381

2,349

-

-

1,381

481

3,462

121

15,452

61

2,207 11,099

144

3,266

2,349

4,087

105

(821)

3,266

15,452

10,642

4,968

16,067

4,863

4,436

4,810

196

15,452 16,067

2,465 2,437

516

Albury Landfill

Category 1

-

2010

19,004

20,608 3,898

2,981

Actual

3,438

178

1,381

(826)

- -

4,315

1,604

427

245

17,552

16,067

96

62

4,541

3,266

105

19,004 17,552

2,763

973

460

241

85

544

2010

460

20,315

80

4,219 -

168

1,088 2,522

481

4,363

2 30

-

Actual

97

-

91

2009

Actual Actual

2009

106

Airport Operations

Category 1

page 10

SPFS 2010

Albury City Council


$ '000

ASSETS

Current Assets


Investments

Receivables


Non-Current Assets



TOTAL ASSETS

LIABILITIES

Current Liabilities

Payables

Provisions



Provisions


TOTAL LIABILITIES

NET ASSETS

EQUITY

Retained earnings



TOTAL EQUITY 712 (1,814) 102

(1,814)

36 42

626

133

(1,947) 43

(1,950)

42 36

828

- 489

149 -

49

2,921

1,949 1,931 728

4,008 4,699

2,100

52

2010

Category 2

72 61

561

- 151

- -

149

Actual

728

55 65

61

-

Actual Actual Actual

154

-

-

2009 2010 2009

- -

Cemetery Crematorium

836

Category 2

Banjora Child Care

990

712

131

4,735

(1,814) 102

102

55

4,050

(2,442)

712

(1,950)

492

1,949 1,931 728

151

679

679

65

116

(1,950)

59 581

3,956 4,650

page 11

SPFS 2010

Albury City Council


$ '000

ASSETS

Current Assets

Inventories


Non-Current Assets



TOTAL ASSETS

LIABILITIES

Current Liabilities

Payables




Provisions


TOTAL LIABILITIES

NET ASSETS

EQUITY

Retained earnings



TOTAL EQUITY6,705 7,110

7,110

11,139 7,851

(961) (291)

6,705

70 55

7,666 7,401

4,434 758

70 55

6,705 7,110

4,364 703

- 63

11,139 7,868

4,364 640

11,139 7,851

- 17

Actual Actual

- 17

Category 2

2010 2009

Albury Entertainment

Centre

page 12

SPFS 2010

Albury City Council

Special Purpose Financial Statements for the financial year ended 30 June 2010


page 13


Details

Summary of Significant Accounting Policies

Water Supply Business Best Practice Management disclosure requirements

Note Page

1

2

14

18

Sewerage Business Best Practice Management disclosure requirements 203

page 13

SPFR 2010

Albury City Council Notes to the Special Purpose Financial Reports

for the financial year ended 30 June 2010

Note 1. Significant Accounting Policies

page 14

Note 1 - SIGNIFICANT ACCOUNTING POLICIES

a. The Special Purpose Financial Reports

These financial statements are a Special

Purpose Financial Report prepared for use by

the Council, the Department of Local

Government, and the Department of Energy,

Utilities and Sustainability. They have been

prepared to report the results of business units

determined by Council in accordance with the

requirements of National Competition Policy

guidelines, and the specific requirements

relating to Best Practice Management of water

and sewer business units.

In preparing these reports, each Business Unit

has been viewed as a separate unit, and

accordingly transactions between different

Business Units, and between Business Units

and other Council operations, have not been

eliminated.

b. Basis of Accounting

b (i) Compliance

The financial reports comply with the

Local Government Code of Accounting

Practice and Financial Reporting and the

Local Government Asset Accounting

Manual, and with the principles of the

June 1996 NSW Government Policy

Statement “Application of National

Competition Policy to Local Government”,

the Department of Local Government’s

July 1997 guidelines “Pricing & Costing

for Council Businesses: A Guide to

Competitive Neutrality” and the

Department of Energy, Utilities and

Sustainability’s May 2004 guidelines

“Best-Practice Management of Water

Supply and Sewerage”.

Except where directed to the contrary by

the above documents, the financial report

also complies with all applicable

Australian Accounting Standards and

other professional pronouncements, and

is based on information consistent with

that forming the basis of Council’s

General Purpose Financial Statements

for the year.

b (ii) Basis

The Special Purpose Financial Report

has been prepared on the accrual basis

of accounting and, except where

specifically indicated in these Notes or in

the Notes to the General Purpose

Financial Statements, in accordance with

the historical cost convention.

SPFR 2009



Note 1. Significant Accounting Policies (continued)

page 15

c. National Competition Policy

Council has adopted the principle of

‘competitive neutrality’ to its business activities

as part of the National Competition Policy that is

being applied throughout Australia to all levels

of government. The framework for its

application is set out in the June 1996

Government Policy statement on the

“Application of National Competition Policy to

Local Government”.

The Department of Local Government’s July

1997 guidelines “Pricing & Costing for Council

Businesses:

A Guide to Competitive Neutrality” outline the

process for identifying and allocating costs to

activities and provide a standard of disclosure

requirements. These disclosures are reflected

in Council’s pricing and/or financial reporting

systems and include taxation equivalents;

council subsidies; return on investments (rate of

return); and dividends paid. The Department of

Energy, Utilities and Sustainability’s May 2004

guidelines “Best-Practice Management of Water

Supply and Sewerage” include specific

requirements relating to the calculation and

payment of “dividends” by water supply and

sewerage business units.

Declared Business Activities

In accordance with the framework set out in the

June 1996 NSW Government Policy Statement

“Application of National Competition Policy to

Local Government” and other guidelines and

documentation in relation to this matter, Council

has declared that the following are to be

considered as Business Units:

Category 1

Name Brief Description of

Activity

Water Supply

Sewerage

Services

Albury Airport

Albury Landfill

Provision and distribution

of secure, safe and

potable water to the Albury

regional area.

Treatment of wastewater.

Provision of airport and

terminal services.

Regional facility for

disposal of hard waste.

Category 2

Name Brief Description of

Activity

Cemetery &

Crematorium

Banjora Child Care

Services

Albury Convention

and Performing

Arts Centre

(ACPAC)

Provision of Cemetery

and crematorium

services.

Provision of long day

child care.

Provision of convention

and function hire

facilities, musical and

theatrical performances

SPFR 2009




page 16

c (i) Taxation Equivalent Payments

Council does not pay certain taxes and

duties that are paid by equivalent private

sector operations, but is liable for others.

The Special Purpose Financial Reports

disclose the effect of imputing these

taxes to the declared business units at

the several rates that would have applied

to equivalent private sector operations.

From 30 June 2004 the Department of

Energy, Utilities and Sustainability’s May

2004 guidelines “Best-Practice

Management of Water Supply and

Sewerage” require that imputed

amounts be paid into the general

funds of the Council where it may be

applied for any permitted purpose of the

Local Government Act 1993 (as

amended).

Details of the rates of each tax or duty

applicable to each different business unit

are set out in the Note 1 Table. The

narration “applies” indicates that the tax

or duty has in fact been paid to the taxing

authority by the Business Unit, and that

these costs have been included in actual

Operating Expenses.

c (ii) Council Rates, Charges & Fees

Council rates have been imputed in

relation to all non-rateable land, and

applied in relation to all rateable land,

owned or exclusively used by all

Business Units. Annual and User

Charges, and Regulatory and Other

Fees, have been applied in relation to all

services supplied to Business Units by

Council or other Business Units.

c (iii) Loan & Debt Guarantee Fees

The debt guarantee fee is designed to

ensure that Council’s Business Units face

equivalent commercial borrowing costs to

private sector competitors. In order to

calculate the debt guarantee fees,

Council has determined the average

differential between actual and

commercial borrowing rates for each

Business Unit.

c (iv) Corporate Taxation Equivalent

In accordance with the Code of Local

Government Accounting Practice and

Financial Reporting, income taxation has

been calculated on the Operating Result

before Capital Amounts disclosed in the

Income Statement of the Special Purpose

Financial Reports. No allowance has

been made for non-deductible items,

timing differences or carried forward

losses. Australian Accounting Standard

AAS 3 “Accounting for Income Tax (Tax

Effect Accounting)” has not been applied.

c (v) Dividends Paid

In accordance with National Competition

Policy guidelines, it is expected that

business units will pay dividends to its

owner, Council, equivalent to those paid

by private sector competitors.

SPFR 2009




page 17

Council is permitted, but not required, to

pay an annual dividend to Council from

its water supply or sewerage business

surplus. The maximum amount of such

dividend permitted under the “Best-

Practice Management of Water Supply

and Sewerage” guidelines is set out at

the foot of the relevant Income

Statement. Actual payment of the

dividend is subject to compliance with the

procedures set out in the guidelines.

c (vi) Return on Investments (Rate of

Return)

The Policy statement states that

Category 1 businesses “would be

expected to generate a rate of return on

capital funds employed that is

comparable to rates of return for private

businesses operating in a similar field.”

In accordance with the Code of

Accounting Practice, the rate of return on

monopoly businesses such as water and

sewerage services has been set at an

amount sufficient to cover costs and

replace assets needed to maintain

services. For competitive markets, the

rate of return has been set equal to or

better than the return on Commonwealth

10 year bonds.


Accounting Practice, the rate of return

has been calculated as the Operating

Result before Capital Amounts plus

Interest Expense expressed as a

percentage of the carrying value of

Property, Plant & Equipment at the

reporting date.

c (vii) Notional Subsidy from Council

Government policy requires that

subsidies provided to customers and the

funding of those subsidies must be

explicitly disclosed. Subsidies occur

where Council provides services on a

less than cost recovery basis, or accepts

a lower rate of return on its investment in

the Business Unit than would be

acceptable to a private sector competitor.


Accounting Practice, this amount has

been calculated as the dollar difference

between the required and actual rates of

return.

d. Other Accounting Policies and Notes

Other accounting policies relating to the

determination of revenues and expenses, and

assets and liabilities, not specifically referred to

above are reported in Note 1 to the Council’s

General Purpose Financial Statements, and

should be read in conjunction with this Note.

e. Rounding

In accordance with the Code of Accounting

Practice all amounts shown in the Financial

Statements have been rounded to the nearest

thousand dollars. Amounts in Notes 2 & 3 are

shown in whole dollars to meet the

requirements of the Department of Energy,

Utilities and Sustainability.

SPFS 2010

Albury City Council

Notes to the Special Purpose Financial Statements for the financial year ended 30 June 2010

Note 2. Water Supply Business Best Practice Management disclosure requirements

Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated)

1. Calculation and Payment of Tax-Equivalents[All Local Government Local Water Utilities must pay this dividend for tax-equivalents]

Calculated Tax Equivalents

No of assessments multiplied by $3/assessment

Amounts payable for Tax Equivalents [lesser of (i) and (ii)]

Amounts actually paid for Tax Equivalents

2. Dividend from Surplus50% of Surplus before Dividends[Calculated in accordance with Best Practice Management for Water Supply and Sewerage Guidelines]

No. of assessments multiplied by $30/assessment, less tax equivalentcharges/assessment

Cumulative surplus before Dividends for the 3 years to 30 June 2010, less thecumulative dividends paid for the 2 years to 30 June 2008

2010 Surplus 2009 Surplus 2008 Surplus

2009 Dividend 2008 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment Criteria]

3. Required outcomes for 6 Criteria[To be eligible for the payment of a "Dividend from Surplus", ALL the Criteria below need a "YES"]

Completion of Strategic Business Plan (including Financial Plan)

Full Cost Recovery, without significant cross subsidies[Refer Item 2(a) in Table 1 on page 22 of the Best Practice Guidelines]

- Complying charges [Item 2(b) in Table 1]

- DSP with Commercial Developer Charges [Item 2(e) in Table 1]

- If Dual Water Supplies, Complying Charges [Item 2(g) in Table 1]

Sound Water Conservation and Demand Management implemented

Sound Drought Management implemented

Complete Performance Reporting Form (by 15 September each year)

a. Integrated Water Cycle Management Evaluation

b. Complete and implement Integrated Water Cycle Management Strategy

(vi) YES

(2,370,000) (3,397,000)

YES

-

YES

YES

(3,729,000)

YES

YES

YES

-

YES

2010

-

617,150

(9,496,000)

40,000

n/a

40,000

65,715 (ii)

(i)

(iv)

(iii)

(iii)

(i)

(ii)

(iv)

(iii)

(ii)

YES

(v)

(iv)

YES

(i)

(v)

page 17

SPFS 2010

Albury City Council


Note 2. Water Supply Business Best Practice Management disclosure requirements (continued)


National Water Initiative (NWI) Financial Performance Indicators

Total Revenue (Water)Total Income (w13) - Grants for the Acquisition of Assets (w11a) - Interest Income (w9)

Revenue from Residential Usage Charges (Water)Income from Residential Usage Charges (w6b) x 100 divided by the sum of

[Income from Residential Usage Charges (w6a) + Income from Residential

Access Charges (w6b)]

Written Down Replacement Cost of Fixed Assets (Water)Written down current cost of system assets (w47)

Operating Cost (OMA) (Water)Management Expenses (w1) + Operational & Maintenance Expenses (w2)

Capital Expenditure (Water)Acquisition of fixed assets (w16)

Economic Real Rate of Return (Water)[Total Income (w13) - Interest Income (w9) - Grants for acquisition of assets (w11a) -

Operating Costs (NWI F11) - Current Cost Depreciation (w3)] x 100 divided by

[Written Down Current Cost of System Assets (w47) + Plant & Equipment (w33b)]

Capital Works Grants (Water)Grants for the Acquisition of Assets (w11a)

Notes: 1. References to w (eg. w12) refer to item numbers within Special Schedules No. 3 & 4 of

Council's Annual Financial Statements.

2. The NWI Performance Indicators are based upon the National Performance Framework

Handbook for Urban Performance Reporting Indicators & Definitions.

64.35%

6,058 NWI F11 $'000

NWI F14

NWI F9

$'000

NWI F26 - $'000

%

$'000

$'000

9,155

NWI F17

NWI F4 %

NWI F1

-0.98%

188,849

-

2010

page 18

SPFS 2010

Albury City Council


Note 3. Sewerage Business Best Practice Management disclosure requirements


1. Calculation and Payment of Tax-Equivalents[All Local Government Local Water Utilities must pay this dividend for tax-equivalents]

Calculated Tax Equivalents

No of assessments multiplied by $3/assessment

Amounts payable for Tax Equivalents [lesser of (i) and (ii)]

Amounts actually paid for Tax Equivalents

2. Dividend from Surplus

50% of Surplus before Dividends[Calculated in accordance with Best Practice Management for Water Supply and Sewerage Guidelines]

No. of assessments x ($30 less tax equivalent charges per assessment)

Cumulative surplus before dividends for the 3 years to 30 June 2010, less thecumulative dividends paid for the 2 years to 30 June 2008

2010 Surplus 2009 Surplus 2008 Surplus

2009 Dividend 2008 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment Criteria]

3. Required outcomes for 4 Criteria

[To be eligible for the payment of a "Dividend from Surplus", ALL the Criteria below need a "YES"]

Completion of Strategic Business Plan (including Financial Plan)

Pricing with full cost-recovery, without significant cross subsidies [Refer Item 2(a) in Table 1 on page 22 of the Best Practice Guidelines]

Complying charges Residential [Item 2(c) in Table 1]

Non Residential [Item 2(c) in Table 1]

Trade Waste [Item 2(d) in Table 1]

DSP with Commercial Developer Charges [Item 2(e) in Table 1]

Liquid Trade Waste Approvals & Policy [Item 2(f) in Table 1]

Complete Performance Reporting Form (by 15 September each year)

a. Integrated Water Cycle Management Evaluation

b. Complete and implement Integrated Water Cycle Management Strategy

YES

549,045

YES

YES

2,145,500

2010

YES

454,200

-

YES

YES

YES

YES

YES

1,034,100

-

203,000

(v)

(iii)

(i)

(a)

(b)

(c)

(iv)

908,400

YES

(ii)

(iv)

(i)

(iv)

(iii)

189,000

61,005

61,005

454,200

(ii)

(iii)

(i)

(ii)

page 19

SPFS 2010

Albury City Council


Note 3. Sewerage Business Best Practice Management disclosure requirements (continued)


National Water Initiative (NWI) Financial Performance Indicators

Total Revenue (Sewerage)Total Income (s14) - Grants for Acquisition of Assets (s12a) - Interest Income (s10)

Written Down Replacement Cost of Fixed Assets (Sewerage)Written down current cost of system assets (s48)

Operating Cost (Sewerage)Management Expenses (s1) + Operational & Maintenance Expenses (s2)

Capital Expenditure (Sewerage)Acquisition of Fixed Assets (s17)

Economic Real Rate of Return (Sewerage)[Total Income (s14) - Interest Income (s10) - Grants for acquisition of Assets (s12a)

- Operating cost (NWI F12) - Current cost depreciation (s3)] x 100 divided by

[Written down current cost (ie. WDCC) of System Assets (s48) + Plant & Equipment (s34b)]

Capital Works Grants (Sewerage)Grants for the Acquisition of Assets (12a)

National Water Initiative (NWI) Financial Performance IndicatorsWater & Sewer (combined)

Total Income (Water & Sewerage)Total Income (w13 + s14) + Gain/Loss on disposal of assets (w14 + s15)

minus Grants for acquisition of assets (w11a + s12a) - Interest Income (w9 + s10)

Revenue from Community Service Obligations (Water & Sewerage)Community Service Obligations (NWI F25) x 100 divided by Total Income (NWI F3)

Capital Expenditure (Water & Sewerage)Acquisition of Fixed Assets (w16 + s17)

Economic Real Rate of Return (Water & Sewerage)[Total Income (w13 + s14) - Interest Income (w9 + s10) - Grants for acquisition of assets

(w11a + s12a) - Operating Cost (NWI F11 + NWI F12) - Current cost depreciation (w3 + s3)] x 100

divided by [Written down replacement cost of fixed assets (NWI F9 + NWI F10)

+ Plant & equipment (w33b + s34b)]

Dividend (Water & Sewerage)Dividend paid from surplus (2(v) of Note 2 + 2(v) of Note 3)

Dividend Payout Ratio (Water & Sewerage)Dividend (NWI F20) x 100 divided by Net Profit after tax (NWI F24)

14,876

161,771

$'000 8,078

$'000 -

%

2010

2.09%

$'000

-

NWI F3 $'000 24,031

-

%

NWI F8 % 1.26%

NWI F20 $'000

NWI F19

NWI F16 $'000

0.43%

-

$'000

NWI F15

$'000NWI F27

0.00%NWI F21 %

NWI F18

NWI F2

NWI F10

NWI F12

page 20

SPFS 2010

Albury City Council


Note 3. Sewerage Business Best Practice Management disclosure requirements (continued)


National Water Initiative (NWI) Financial Performance IndicatorsWater & Sewer (combined)

Net Debt to Equity (Water & Sewerage)Overdraft (w36 + s37) + Borrowings (w38 + s39) - Cash & Investments (w30 + s31)

x 100 divided by [Total Assets (w35 + s36) - Total Liabilities (w40 + s41)]

Interest Cover (Water & Sewerage)Earnings before Interest & Tax (EBIT) divided by Net Interest

Earnings before Interest & Tax (EBIT):

Operating Result (w15a + s16a) + Interest expense (w4a + s4a) - Interest Income (w9 + s10)

- Gain/Loss on disposal of assets (w14 + s15) + Miscellaneous Expenses (w4b + w4c + s4b + s4c)

Net Interest:

Interest Expense (w4a + s4a) - Interest Income (w9 + s10)

Net Profit After Tax (Water & Sewerage)Surplus before dividends (w15a + s16a) - Tax equivalents paid (Note 2-1(iv) + Note 3-1(iv))

Community Service Obligations (Water & Sewerage)Grants for Pensioner Rebates (w11b + s12b)

Notes: 1. References to w (eg. s12) refer to item numbers within Special Schedules No. 5 & 6 of

Council's Annual Financial Statements.

2. The NWI Performance Indicators are based upon the National Performance Framework Handbook

for Urban Performance Reporting Indicators & Definitions.

303

3

1,008

439

NWI F25 $'000

NWI F24

NWI F23

$'000

NWI F22 %

1,517

2010

3.58%

page 21

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Albury City Council