Annual Financial Statements - Consolidated Financial

FinancialStatements2019/20

Blacktown City Council and its subsidiaryCONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2020

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“CITY OF EXCELLENCE - DIVERSE, DYNAMIC, PROGRESSIVE"

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Contents Page

1. Understanding Council's Consolidated Financial Statements

2. Statement by Councillors & Management

3. Primary Consolidated Financial Statements:Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows

4. Notes to the Consolidated Financial Statements

5. Independent Auditor’s Reports:On the Financial Statements (Sect 417 [2]) On the Financial Statements (Sect 417 [3])

Blacktown City Council is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:

Overview

62 Flushcombe RoadBlacktown NSW 2148

Council’s guiding principles are detailed in Chapter 3 of the LGA and includes:

• principles applying to the exercise of functions generally by council,• principles to be applied when making decisions,• principles of community participation,• principles of sound financial management, and• principles for strategic planning relating to the development of an integrated planning and reporting framework.

A description of the nature of Council’s operations and its principal activities are provided in Note 2(b).

Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimum cost. Allpress releases, financial statements and other information are publicly available on our website: www.blacktown.nsw.gov.au.

Blacktown City Council and its subsidiary

Consolidated Financial Statementsfor the year ended 30 June 2020

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Financial Statements 2020

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http://www.blacktown.nsw.gov.au.

§Note/Subtotal§

Each year, individual Local Governments across NSW are required to present a set of audited financial statements to theircouncil and community.

§Subnote§

Introduction

The consolidated financial statements set out the financial performance, financial position and cash flows of Council for thefinancial year ended 30 June 2020.

What you will find in the Statements

The format of the financial statements is standard across all NSW Councils and complies with both the accounting and reportingrequirements of Australian Accounting Standards and requirements as set down by the Office of Local Government.

The consolidated financial statements must be certified by senior staff as ‘presenting fairly’ the Council’s financial results forthe year and are required to be adopted by Council – ensuring both responsibility for and ownership of the financial statements.

About the Councillor/Management Statement

The consolidated financial statements incorporate five "primary" financial statements:

1. The Consolidated Income Statement

About the Consolidated Primary Financial Statements

Summarises Council's financial performance for the year, listing all income and expenses. This statement also displaysCouncil's original adopted budget to provide a comparison between what was projected and what actually occurred.

2. The Consolidated Statement of Comprehensive Income

Primarily records changes in the fair value of Council's Infrastructure, property, plant and equipment.

3. The Consolidated Statement of Financial Position

A 30 June snapshot of Council's financial position indicating its assets, liabilities and “net wealth”.

4. The Consolidated Statement of Changes in Equity

The overall change for the year (in dollars) of Council's "net wealth".

5. The Consolidated Statement of Cash Flows

Indicates where Council's cash came from and where it was spent. This statement also displays Council's original adoptedbudget to provide a comparison between what was projected and what actually occurred.

The Notes to the Consolidated Financial Statements provide greater detail and additional information on the five primaryfinancial statements.

About the Notes to the Consolidated Financial Statements

Council’s consolidated financial statements are required to be audited by the NSW Audit Office.

About the Auditor's Reports

In NSW the auditor provides 2 audit reports:

1. an opinion on whether the consolidated financial statements present fairly the Council’s financial performance andposition, and

2. their observations on the conduct of the audit, including commentary on the Council’s financial performance and financialposition.

continued on next page ...



Understanding Council's Consolidated Financial Statements

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Financial Statements 2020Blacktown City Council and its subsidiary


Understanding Council's Consolidated Financial Statements

Who uses the Consolidated Financial Statements?The consolidated financial statements are publicly available documents and must be presented at a Council meeting betweenseven days and five weeks after the date of the audit report.

The public can make submissions to Council up to seven days subsequent to the public presentation of the financial statements.

Council is required to forward an audited set of financial statements to the Office of Local Government.



Understanding Council's Consolidated Financial Statements (continued)

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Understanding Council's Consolidated Financial Statements (continued)

§Statement§

Original unaudited

budget

Actual Actual2020 2020 2019

$ '000 Notes $ '000 $ '000

Income from continuing operations 235,868 Rates and annual charges 3a 239,586 225,253

41,379 User charges and fees 3b 37,192 39,2698,528 Other revenues 3c 11,181 19,899

23,967 Grants and contributions provided for operating purposes 3d,3e 36,214 29,053147,401 Grants and contributions provided for capital purposes 3d,3e 258,177 261,889

11,555 Interest and investment income 4 11,214 16,06348,072 Net gains from the disposal of assets 6 20,859 –

– Fair value increment on investment properties 11 100,504 3,0788,589 Rental income 14e 9,016 –

– Net share of interests in joint ventures and associates using the equity method

19664 928

525,359 Total income from continuing operations 724,607 595,432

Expenses from continuing operations 159,548 Employee benefits and on-costs 5a 155,977 155,129

– Borrowing costs 5b 27 –73,161 Materials and contracts 5c 89,161 87,48881,000 Depreciation and amortisation 5d 73,433 72,27438,709 Other expenses 5e 41,684 38,695

– Net losses from the disposal of assets 6 – 1,448352,418 Total expenses from continuing operations 360,282 355,034

172,941 Operating result from continuing operations 364,325 240,398

172,941 Net operating result for the year 364,325 240,398

172,941 Net operating result attributable to council 364,325 240,398

25,540 Net operating result for the year before grants and contributions provided for capital purposes 106,148 (21,491)

The Council has not restated comparatives when initially applying AASB 1058 Income of Not-for-Profit Entities, AASB 15 Revenue fromContracts with Customers and AASB 16 Leases. The comparative information has been prepared under AASB 111 ConstructionContracts, AASB 118 Revenue, AASB 1004 Contributions, AASB 117 Leases and related Accounting Interpretations.

The above Income Statement should be read in conjunction with the accompanying notes.


Consolidated Income Statementfor the year ended 30 June 2020

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Consolidated Income Statementfor the year ended 30 June 2020

§Note/Subtotal§

ActualRestated

Actual2020 2019

Notes $ '000 $ '000

§Subnote§

Net operating result for the year (as per Income Statement) 364,325 240,398

Other comprehensive income:Amounts which will not be reclassified subsequently to the operating resultGain (loss) on revaluation of IPP&E 10(a) 302,185 (28,533)Total items which will not be reclassified subsequently to the operating result 302,185 (28,533)

Total other comprehensive income for the year 302,185 (28,533)

Total comprehensive income for the year 666,510 211,865

Total comprehensive income attributable to Council 666,510 211,865


The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


Consolidated Statement of Comprehensive Incomefor the year ended 30 June 2020

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Consolidated Statement of Comprehensive Incomefor the year ended 30 June 2020

§Statement§

ActualRestated

ActualRestated

Actual2020 2019 1 July 2018

Notes $ '000 $ '000 $ '000

ASSETS Current assets Cash and cash equivalents 7(a) 187,173 182,945 165,590Investments 7(b) 345,000 300,000 304,000Receivables 8 20,773 35,733 31,156Inventories 9a 12,306 22,194 11,942Other 9b 1,555 2,139 1,928Total current assets 566,807 543,011 514,616

Non-current assets Investments 7(b) 87,000 62,000 92,000Receivables 8 2,665 2,119 1,865Inventories 9a 45,102 39,665 50,590Infrastructure, property, plant and equipment 10(a) 4,815,528 4,285,614 4,062,078Investment property 11 181,216 78,688 75,409Intangible Assets 12 1,234 2,208 3,412Right of use assets 14a 885 – –Investments accounted for using the equity method 19 9,312 10,501 9,573Total non-current assets 5,142,942 4,480,795 4,294,927

Total assets 5,709,749 5,023,806 4,809,543

LIABILITIES Current liabilities Payables 15 103,685 82,934 90,689Income received in advance 15 – 7,712 6,112Contract liabilities 13 16,564 – –Lease liabilities 14b 905 – –Provisions 16 58,959 59,136 54,052Total current liabilities 180,113 149,782 150,853

Non-current liabilities Contract liabilities 13 16,113 – –Provisions 16 12,444 11,161 9,073Total non-current liabilities 28,557 11,161 9,073

Total liabilities 208,670 160,943 159,926

Net assets 5,501,079 4,862,863 4,649,617

EQUITY Accumulated surplus 17 4,202,370 3,866,339 3,624,560Revaluation reserves 17 1,298,709 996,524 1,025,057Council equity interest 5,501,079 4,862,863 4,649,617

Total equity 5,501,079 4,862,863 4,649,617

The restatement comparatives above exclude the application of AASB 1058 Income of Not-for-Profit Entities, AASB 15 Revenue from Contracts with Customers and AASB 16 Leases. The Council has not restated the comparative information prepared under AASB 111 Construction Contracts, AASB 118 Revenue, AASB 1004 Contributions, AASB 117 Leases and related Accounting Interpretations.

The above Statement of Financial Position should be read in conjunction with the accompanying notes.


Consolidated Statement of Financial Positionas at 30 June 2020

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Consolidated Statement of Financial Positionas at 30 June 2020

§Note/Subtotal§

as at 30/06/20 as at 30/06/19

Accumulatedsurplus

IPP&E revaluation

reserve

Totalequity Accumulated

surplus

IPP&E revaluation

reserve

Totalequity

Notes $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

§Subnote§

Opening balance 3,768,056 1,012,075 4,780,131 3,525,685 1,040,608 4,566,293Correction of prior period errors 17b 98,283 (15,551) 82,732 100,256 (15,551) 84,705Changes due to AASB 1058 and AASB 15 adoption 17 (28,294) – (28,294) – – –

Net operating result for the year 364,325 – 364,325 242,371 – 242,371Correction of prior period errors 17b – – – (1,973) – (1,973)Restated net operating result for the period 364,325 – 364,325 240,398 – 240,398

Other comprehensive income– Gain (loss) on revaluation of IPP&E 10(a) – 302,185 302,185 – (28,533) (28,533)Other comprehensive income – 302,185 302,185 – (28,533) (28,533)

Total comprehensive income 364,325 302,185 666,510 240,398 (28,533) 211,865

Equity – balance at end of the reporting period 4,202,370 1,298,709 5,501,079 3,866,339 996,524 4,862,863

The Council has not restated comparatives when initially applying AASB 1058 Income of Not-for-Profit Entities, AASB 15 Revenue from Contracts with Customers and AASB 16 Leases. The comparativeinformation has been prepared under AASB 111 Construction Contracts, AASB 118 Revenue, AASB 1004 Contributions, AASB 117 Leases and related Accounting Interpretations.

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.


Consolidated Statement of Changes in Equityfor the year ended 30 June 2020

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Consolidated Statement of Changes in Equityfor the year ended 30 June 2020

§Statement§

Original unaudited

budget

Actual Actual2020 2020 2019

$ '000 Notes $ '000 $ '000

Cash flows from operating activities Receipts:

233,296 Rates and annual charges 239,034 224,62542,210 User charges and fees 47,305 41,48212,535 Investment and interest revenue received 13,863 15,52178,266 Grants and contributions 217,557 139,134

– Bonds, deposits and retention amounts received 24,426 10,79417,104 Other 48,830 41,878

Payments: (159,588) Employee benefits and on-costs (158,122) (149,818)

(72,546) Materials and contracts (95,596) (108,423)– Borrowing costs (27) –– Bonds, deposits and retention amounts refunded (20,173) (6,189)

(38,145) Other (47,011) (54,397)

113,132Net cash provided (or used in) operating activities

18b

270,086 154,607

Cash flows from investing activities Receipts:

– Sale of investment securities 540,000 405,00064,470 Sale of real estate assets 37,752 11,098

– Sale of infrastructure, property, plant and equipment 2,904 2,998Payments:

– Purchase of investment securities (610,000) (371,000)– Purchase of investment property (2,024) (579)

(289,188) Purchase of infrastructure, property, plant and equipment (228,918) (181,513)– Purchase of real estate assets (4,557) (3,138)– Purchase of intangible assets (327) (118)

(224,718) Net cash provided (or used in) investing activities (265,170) (137,252)

Cash flows from financing activities Payments:

– Lease liabilities (principal repayments) (688) –– Net cash flow provided (used in) financing activities (688) –

(111,586) Net increase/(decrease) in cash and cash equivalents 4,228 17,355

190,037 Plus: cash and cash equivalents – beginning of year 18a 182,945 165,59078,451 Cash and cash equivalents – end of the year 18a 187,173 182,945

362,000 plus: Investments on hand – end of year 7(b) 432,000 362,000

440,451 Total cash, cash equivalents and investments 619,173 544,945


The above Statement of Cash Flows should be read in conjunction with the accompanying notes.


Consolidated Statement of Cash Flowsfor the year ended 30 June 2020

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Consolidated Statement of Cash Flowsfor the year ended 30 June 2020

§NotesTable§

Note Details Page

1 Basis of preparation 2(a) Council functions/activities – financial information 2(b) Council functions/activities – component descriptions 3 Revenue from continuing operations 4 Interest and investment income 5 Expenses from continuing operations 6 Gains or losses from the disposal 7(a) Cash and cash equivalents 7(b) Investments 7(c) Restricted cash, cash equivalents and investments 8 Receivables 9 Inventories and other assets 10(a) Infrastructure, property, plant and equipment 10(b) Infrastructure, property, plant and equipment – current year impairments 11 Investment properties 12 Intangible assets 13 Contract assets and liabilities 14 Leases 15 Payables and borrowings 16 Provisions 17 Accumulated surplus, revaluation reserves, changes in accounting policies, changes in

accounting estimates and errors

18 Statement of cash flow information 19 Interests in other entities 20 Commitments 21 Contingencies 22 Financial risk management 23 Material budget variations 24 Fair Value Measurement 25 Related party disclosures 26 Events occurring after the reporting date 27 Statement of developer contributions 28(a) Statement of performance measures – consolidated results

Additional Council disclosures (unaudited)

28(b) Statement of performance measures – consolidated results (graphs)


Notes to the Consolidated Financial Statementsfor the year ended 30 June 2020

Contents of the Notes accompanying the Consolidated Financial Statements

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Contents of the Notes accompanying the Consolidated Financial Statements

§Note/Subtotal§

These financial statements were authorised for issue by Council on 28 October 2020. Council has the power to amend andreissue these financial statements in cases where critical information is received from public submissions or where the Officeof Local Government directs Council to amend the financial statements.

§Subnote§

The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below.These policies have been consistently applied to all the years presented, unless otherwise stated.The financial statements are for the Council consisting of Blacktown City Council and its subsidiary.

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards andAustralian Accounting Interpretations, the Local Government Act 1993 (NSW) and Regulations, and the Local GovernmentCode of Accounting Practice and Financial Reporting.

Council is a not for-profit entity.

The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars.

Funding strategy to respond to COVID-19 pandemic impact on our budget

COVID19

Our funding strategy was developed to respond to an anticipated reduction in our revenue over a period of 18 months. Thestrategy will also provide a buffer to cope with an expected impact on our cashflow due to some ratepayers taking longer topay their rates and charges.

Given the severity of the reduction in revenue, and the extended duration of the reduction, Council established an internallyrestricted reserve called ‘COVID-19 budget response reserve’ which is listed in the financial statements under Note 7C. Thepurpose of the reserve will be to provide a source of funding to offset reductions in revenue over an extended period of 24months. At the end of this period, should there be any remaining funds in this reserve, it is recommended they be returnedto working capital.

The projected reduction in revenue will be offset by the savings across our operating and capital budgets, and as these savingsare achieved they are immediately transferred to this reserve. The funds held in this reserve will then be used, as needed,to offset unfavourable budget revenue variances in those service areas directly impacted by controls in place as a result ofthe COVID-19 pandemic public health orders. These savings comprise a blend of employment savings resulting from currentvacant positions, savings in some project votes and some material and contract budgets.

(a) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities and certain classes of infrastructure, property, plant and equipment and investment property.

(b) Significant accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires managementto exercise its judgement in the process of applying the Council's accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, includingexpectations of future events that may have a financial impact on the Council and that are believed to be reasonable underthe circumstances.

(c) Critical accounting estimates and assumptions

Council makes estimates and assumptions concerning the future.

The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assetsand liabilities within the next financial year include:

(i) estimated fair values of investment properties(ii) estimated fair values of infrastructure, property, plant and equipment




Note 1. Basis of preparation

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Note 1. Basis of preparation

(d) Significant judgements in applying the council's accounting policies

(i) Impairment of receivables

Council has made a significant judgement about the impairment of a number of its receivables – refer Note 8.

User charges, fees and other income (including parking fees and fines) are recognised as revenue when the service has beenprovided, the payment is received, or when the penalty has been applied, whichever first occurs.

(e) User charges, fees and other Income

A provision for the impairment of these receivables is recognised when collection in full is no longer probable.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not beenprovided as at balance date.

The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.

(f) Sale of infrastructure, property, plant and equipment

Rental income is accounted for on a straight-line basis over the lease term.

(g) Interest and rents

Interest income from cash and investments is accounted for using the effective interest rate at the date that interest is earned.

Revenue is recognised when the Council’s right to receive the payment is established, which is generally when shareholdersapprove the dividend.

(h) Dividend income

Other income is recorded when the payment is due, the value of the payment is notified or the payment is received, whicheveroccurs first.

(i) Other Income

The Council has obligations to provide facilities from contribution revenues levied on developers under the provisions of s7.11of the EPA Act 1979.

(j) Contributions under Section 7.11 of the Environmental Planning and Assessment Act

Whilst Council generally incorporates these amounts as part of a Development Consents Order, such developer contributionsare only recognised as income on receipt by Council, due to the possibility that individual development consents may not beacted on by the applicant and accordingly would not be payable to Council.

Developer contributions may only be expended for the purposes for which the contributions were required but the Council mayapply contributions according to the priorities established in work schedules.

A detailed note relating to developer contributions can be found at Note 24.

The Council has obligations to provide facilities from contributions required from developers under the provisions of S7.11 ofthe Environmental Planning & Assessment Act. Contributions received each year are required to be held as restricted assetsuntil used for the purposes designated in formal contribution plans.

Amounts may be expended only for the purposes for which the contributions were required, but the Council may, within eacharea of benefit, apply contributions according to the priorities established in the relevant contributions plan and accompanyingworks schedules.

The following contributions plans have been adopted by Council and are available for public inspection free of cost.

CP No. 1 – 1980’s Release AreaDate Plan came into force – 15/12/2010




Note 1. Basis of preparation (continued)

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Trunk DrainageFlood MitigationMajor RoadsOverbridgesOpen SpaceCommunity Facilities

CP No. 2 – Local RoadworksDate Plan came into force – 04/02/2015Roadworks

CP No. 3 – Open Space in the Established Residential AreasDate Plan came into force – 07/12/2016Land Acquisitions PlaygroundsPlaying FieldsLandscapingAmenities BuildingsFencingCar parkingLightingPicnic Facilities

CP No. 4 – Mount Druitt Development AreaDate Plan came into force – 04/02/2015Trunk DrainageLocal Roads

CP No. 5 – Parklea Release AreaDate Plan came into force – 04/02/2015Trunk DrainageTributary Trunk DrainageMajor RoadsLocal RoadsOpen SpaceCommunity Facilities

CP No. 15 – Metella Road FloodplainDate Plan came into force – 07/03/2018Compensatory Works to the Floodplain

CP No. 17 – Quakers Hill Commercial PrecinctDate Plan came into force – 15/06/2016Traffic Management Facilities

CP No. 18 – Eastern Creek Stage 3Date Plan came into force – 22/06/2016RoadsDrainage

CP No. 19 – Blacktown Growth PrecinctDate Plan came into force – 10/04/2019Local Road ConstructionStreetscape FacilitiesTraffic Management FacilitiesOpen SpaceCommunity FacilitiesDrainage

CP No. 20 – Riverstone & Alex Avenue PrecinctsDate Plan came into force – 09/12/2015 (new version in force 23/07/2020)RoadsDrainageOpen Space





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Environmental ConservationCommunity Facilities

CP No. 21 – Marsden ParkDate Plan came into force – 14/12/2016 (new version in force 23/07/2020)RoadsDrainageOpen SpaceEnvironmental ConservationCommunity Facilities

CP No. 22L – Rouse Hill (land)Date Plan came into force – 07/03/2018RoadsDrainageOpen SpaceEnvironmental ConservationCommunity Facilities

CP No. 22W – Rouse Hill (works)Date Plan came into force – 07/03/2018RoadsDrainageOpen SpaceEnvironmental Conservation

CP No. 23 – Riverstone West PrecinctDate Plan came into force – 03/08/2010RoadsDrainage

CP No. 24L – Schofields Precinct (land)Date Plan came into force – 10/10/2018RoadsDrainageOpen SpaceEnvironmental ConservationAquatic CentreCommunity Facilities

CP No. 24W – Schofields Precinct (works)Date Plan came into force –10/10/2018RoadsDrainageOpen SpaceEnvironmental Conservation

Council also holds contributions, which were obtained prior to the requirement to have contribution plans in place. Thesemoneys must be applied only for purposes for which they were obtained.

Council has identified the need for supplementary funding to ensure all contribution plan commitments are met. To achievethis, Council has established an Infrastructure Sinking Fund to which it makes annual contributions.

In accordance with the provisions of Section 409(1) of the Local Government Act 1993 (NSW), all money and property receivedby Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund.

Monies and other assets received by Council

(a) The Consolidated Fund

Cash and other assets of the following entities have been included as part of the Consolidated Fund:

◾ General purpose operations





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◾ Civic Risk West (joint venture)◾ Civic Risk Mutual (joint venture)◾ Blacktown Venue Management Ltd (subsidiary)

Due to their immaterial value and nature, the following committees, entities and operations have been excluded fromconsolidation:

◾ Hall Management Committee◾ Park Management Committee

Council controls eighty nine (89) Park and Hall Management Committees under Section 355 of the Local Government Act 1993.Thirty four (34) of these committees maintain their own funds and were instructed to provide Council with audited financialstatements for the accounting year ended 31 March 2020. Of the thirty four (34) Committees, twenty three (23) complied andprovided their financial statements. The (i) total income and expenditure from continuing operations and (ii) net assets heldby these excluded committees and operations is as follows:

Total income from continuing operations $1,080,312

Total expenditure from continuing operations $758,804

Total net assets held (i.e. equity) $3,758,009

In accordance with the provisions of Section 411 of the Local Government Act 1993 (NSW) (as amended), a separate anddistinct Trust Fund is maintained to account for all money and property received by the council in trust which must be appliedonly for the purposes of, or in accordance with, the trusts relating to those monies.

(b) The Trust Fund

Trust monies and property subject to Council’s control have been included in these reports.

Trust monies and property held by Council but not subject to the control of Council have been excluded from these statements.A separate statement of monies held in the trust fund is available for inspection at the Council office by any person free ofcharge.

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is notrecoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as partof the expense.

Goods and Services Tax (GST)

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverablefrom, or payable to the taxation authority is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activitiesthat are recoverable from, or payable to, the taxation authority are presented as operating cash flows.

Volunteer services

Council received volunteer services as per described in the community section of the annual reports. It has been assessed that the services will not be purchased if not donated, overall quantifiable amount of donation is not considered to be material

Certain new accounting standards and interpretations (ie. pronouncements) have been published by the Australian AccountingStandards Board that are not mandatory for the 30 June 2020 reporting period.

Council has elected not to apply any of these pronouncements in these financial statements before their operative dates.

New accounting standards and interpretations issued not yet effective





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As at the date of authorisation of these financial statements Council does not consider that any of these new (and still to beapplied) standards and interpretations are likely to have a material impact on the Council's future financial statements, financialposition, financial performance or cash flows.

During the year, Council adopted all standards which were mandatorily effective for the first time at 30 June 2019.

New accounting standards adopted during the year

Those newly adopted standards which had an impact on reported position, performance and/or disclosures have beendiscussed in Note 17.




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§Note/Subtotal§§Subnote§

Income, expenses and assets have been directly attributed to the following functions or activities.Details of those functions or activities are provided in Note 2(b).

Income from continuing operations

Expenses from continuing operations

Operating result from continuing operations

Grants included in income from

continuing operations Carrying amount of assets2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Restated Restated Restated Restated Restated$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Functions or activitiesA vibrant and inclusive community 26,571 24,557 47,208 45,938 (20,637) (21,381) 6,721 6,520 203,566 214,705A clean, sustainable and healthy environment 68,232 62,265 100,700 98,707 (32,468) (36,442) 447 326 920,992 912,642A smart and prosperous economy 4,007 4,427 12,227 12,575 (8,220) (8,148) 174 114 44,277 29,760A growing city supported by accessible infrastructure 23,702 19,259 48,597 50,656 (24,895) (31,397) 1,355 21,335 2,554,097 2,121,733A sporting and active city 10,839 13,321 31,775 32,852 (20,936) (19,531) 212 858 240,535 193,913A leading city 591,256 471,603 119,775 114,306 471,481 357,297 53,441 17,915 1,746,282 1,551,053Total functions and activities 724,607 595,432 360,282 355,034 364,325 240,398 62,350 47,068 5,709,749 5,023,806



Note 2(a). Council functions/activities – financial information

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Note 2(a). Council functions/activities – financial information

§Note/Subtotal§

A vibrant and inclusive community

§Subnote§

Details relating to the Council’s functions/activities as reported in Note 2(a) are as follows:

Community outcome: Our local communities are welcoming, vibrant and inclusive, enabling individuals and groupsto achieve their potential and the City to prosper as a centre of culture, creativity and learning.

Includes costs relating to:

Arts and cultural development Economic developmentChildrens services Emergency services supportCity events and partnerships LibrariesCity marketing and promotions Property maintenanceCommunity development Strategic planningCommunity facility construction and maintenance Transport infrastructure construction and maintenanceCommunity regulation

A clean, sustainable and healthy environment

Community outcome: Our local places and spaces are clean and healthy, turning sustainability awareness into actionto halt or reverse negative impacts on our built and natural environment.


Blacktown International Sportspark and other key venuesBuilding and development assessment Open space improvements and maintenanceCity design Property maintenanceCommunity development Recreation planningCommunity regulation Strategic planningDrainage, catchment and stormwater management Street cleaningEnvironmental protection Urban animal managementHealth regulation Waste management

A smart and prosperous economy

Community outcome: Strategic economic opportunities and partnerships facilitate sustainable growth of our localand regional economy, attract investment to our City and foster local business and employment.


Building and development assessment Environmental protectionCity design GovernanceCity events LibrariesCity marketing Property management and developmentCommunity development Strategic planningCommunity regulation Transport infrastructure construction and maintenanceEconomic development Transport planning




Note 2(b). Council functions/activities - component descriptions

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Note 2(b). Council functions/activities - component descriptions

A growing city supported by accessible infrastructure

Community outcome: Our neighbourhoods are well planned and liveable with housing, transport and infrastructurethat meets the diverse needs of our growing community.


Asset management Financial managementBuilding and development assessment Open spaceCity design Property management and developmentCommunity development Strategic planningCommunity facility construction and maintenance Transport infrastructure construction and maintenanceCommunity regulation Transport planningDrainage, catchment and stormwater management

A sporting and active city

Community outcome: Blacktown City is the recognised sporting capital of Western Sydney with world standardsporting venues and events and community participation in local sports supporting an active and healthy lifestyle.


Aquatic and leisure centres Community developmentAsset management Economic developmentBlacktown International Sportspark and other key venues Open space improvements and maintenanceCity events and partnerships Property management and developmentCity marketing and promotions Recreation planning

A leading city

Community outcome: Blacktown City leads through a shared vision, engaged civic governance and excellent servicesand systems.


Aquatic and leisure centres Corporate strategyBlacktown City Information Centre Financial managementBusiness technology Fleet managementCity events and partnerships Governance and corporate support servicesCity marketing and promotions Human resourcesCorporate buildings Property management and development



Note 2(b). Council functions/activities - component descriptions (continued)

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Note 2(b). Council functions/activities - component descriptions (continued)


§Note/Subtotal§

AASB 2020 2019Actual Actual

$ '000 $ '000

(a) Rates and annual charges

§Subnote§

Ordinary ratesResidential 1058 (1) 127,563 120,075Farmland 1058 (1) 279 315Business 1058 (1) 50,669 48,974Less: pensioner rebates (mandatory) 1058 (1) (2,451) (2,231)Less: pensioner rebates (Council policy) 1058 (1) (1,422) (1,347)Rates levied to ratepayers 174,638 165,786

Pensioner rate subsidies received 1058 (1) 1,323 1,365Total ordinary rates 175,961 167,151

Annual charges(pursuant to s.496, s.496A, s.496B, s.501 & s.611)

Domestic waste management services 1058 (1) 57,787 52,686Stormwater management services 1058 (1) 3,766 3,451Waste management services (non-domestic) 1058 (1) 1,255 1,205Section 611 charges 1058 (1) 223 210Annual charges levied 63,031 57,552

Pensioner subsidies received:– Domestic waste management 1058 (1) 594 550Total annual charges 63,625 58,102

TOTAL RATES AND ANNUAL CHARGES 239,586 225,253

The AASB notation (above) identifies the revenue recognition pattern for material items of Council revenue:

15 (1) indicates income recognised under AASB 15 “at a point in time”,15 (2) indicates income recognised under AASB 15 “over time”,1058 (1) indicates income recognised under AASB 1058 “at a point in time”, while1058 (2) indicates income recognised under AASB 1058 “over time”.

Council has used 2016 year valuations provided by the NSW Valuer General in calculating its rates.

Rates and annual charges are recognised as revenue when the Council obtains control over the assets comprising thesereceipts which is the beginning of the rating period to which they relate.

Accounting policy for rates and charges

Prepaid rates are recognised as a financial liability until the beginning of the rating period.

Pensioner rebates relate to reductions in rates and certain annual charges for eligible pensioners’ place of residence in thelocal government council area that are not subsidised by the NSW Government.

Pensioner rate subsidies are received from the NSW Government to provide a contribution towards the pensioner rebatesand are in substance a rates payment.

2019 accounting policyControl over assets acquired from rates and annual charges is obtained at the commencement of the rating year as it is anenforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.



Note 3. Revenue from continuing operations

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Note 3. Revenue from continuing operations


§Note/Subtotal§


$ '000 $ '000

(b) User charges and fees

Specific user charges(per s.502 - specific 'actual use' charges)Sullage and septic tank charges 15 (1) 125 93Total specific user charges 125 93

Other user charges and fees(i) Fees and charges – statutory and regulatory functions (per s.608)Planning and building regulation 15 (1) 3,338 4,044Registration fees 15 (1) 907 1,258Section 603 certificates 15 (1) 513 415Building construction / compliance certificate fees 15 (1) 380 892Engineering construction / compliance certificate fees 15 (1) 1,933 2,217Section 735a certificate fees 15 (1) 69 79Subdivision certificate fees 15 (1) 809 667Zoning certificates 15 (1) 811 851Total fees and charges – statutory/regulatory 8,760 10,423

(ii) Fees and charges – other (incl. general user charges (per s.608))Cemeteries 15 (1) 388 350Parking fees 15 (1) – 109Swimming centres 15 (2) 5,132 6,692Animal control 15 (1) 173 212Child care / pre school 15 (2) 17,572 15,531Hall hire 15 (1) 583 775Health and fitness 15 (1) 2,303 2,922Health licences and fees 15 (1) 138 179Inspections – vehicle crossings 15 (1) 1,286 1,286Laneway closure application fees 15 (1) 4 9Library – photocopier / fax charges 15 (1) 95 129Other 15 (1) 633 559Total fees and charges – other 28,307 28,753

TOTAL USER CHARGES AND FEES 37,192 39,269



Revenue arising from user charges and fees is recognised when or as the performance obligation is completed and thecustomer receives the benefit of the goods / services being provided.

Accounting policy for user charges and fees

The performance obligation relates to the specific services which are provided to the customers and generally the paymentterms are within 30 days of the provision of the service or in some cases such as caravan parks, the customer is required topay on arrival. There is no material obligation for Council in relation to refunds or returns.

Where an upfront fee is charged such as membership fees for the leisure centre the fee is recognised on a straight-line basisover the expected life of the membership.



Note 3. Revenue from continuing operations (continued)

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Licences granted by Council are all either short-term or low value and all revenue from licences is recognised at the time thatthe licence is granted rather than the term of the licence.

2019 accounting policyUser charges and fees are recognised as revenue when the service has been provided.


$ '000 $ '000

(c) Other revenues

§Subnote§

Rental income – investment property 16 – 4,185Rental income – other council properties (2019 only) 16 – 2,854Fines 1058 (1) 3,001 3,408Legal fees recovery – rates and charges (extra charges) 1058 (1) 163 232Legal fees recovery – other 1058 (1) 156 108Diesel rebate 1058 (1) 282 288Insurance claims recoveries 1058 (1) 257 32Recycling income 15 (1) 572 308Sale of energy savings certificates 15 (1) 752 –Sales – general 15 (1) 1,311 1,654Animal control 15 (1) 249 276Community services / child care 15 (2) 799 759Employee contributions 15 (1) 10 1,610Park hire 15 (1) 299 303Other 15 (1) 1,131 796Reinstatement of roads and footpaths 15 (1) 2,199 2,300Tenant licences 16 – 786TOTAL OTHER REVENUE 11,181 19,899


15 (1) indicates income recognised under AASB 15 “at a point in time”,15 (2) indicates income recognised under AASB 15 “over time”,1058 (1) indicates income recognised under AASB 1058 “at a point in time”, while1058 (2) indicates income recognised under AASB 1058 “over time”.16 indicates income recognised under AASB 16 "Lease"

Accounting policy for other revenueWhere the revenue relates to a contract with customer, the revenue is recognised when or as the performance obligation iscompleted and the customer receives the benefit of the goods / services being provided.

Where the revenue relates to a contract which is not enforceable or does not contain sufficiently specific performanceobligations then revenue is recognised when an unconditional right to a receivable arises or the cash is received, which isearlier.

2019 accounting policy:Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefitswill flow to the Council and specific criteria have been met for each of the Council’s activities as described below. Councilbases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specificsof each arrangement.

Parking fees and fines are recognised as revenue when the service has been provided, or when the penalty has been applied,whichever occurs first.




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§Note/Subtotal§

Operating Operating Capital CapitalAASB 2020 2019 2020 2019

Actual Actual Actual Actual $ '000 $ '000 $ '000 $ '000

(d) Grants

General purpose (untied)Current year allocationFinancial assistance 1058 (1) 8,182 8,336 – –Payment in advance - future year allocationFinancial assistance 1058 (1) 8,670 8,643 – –Total general purpose 16,852 16,979 – –

Specific purposeBushfire and emergency services 1058 (1) 227 221 – –Community centres 1058 (2) – – 272 153Employment and training programs 15 (2) 95 95 – –Environmental programs 1058 (1) 102 – – –Heritage and cultural 1058 (1) 471 649 – –Library 1058 (2) 17 55 61 85Library – per capita 1058 (1) 938 780 – –Street lighting 1058 (1) 1,292 1,266 – –Transport (roads to recovery) 1058 (1) 6,353 – – –Transport (other roads and bridges funding) 1058 (1&2) 273 104 27,424 20,006Better waste and recycling 1058 (1) 328 325 – –Community care services 1058 (1) &

15 (2) 4,886 4,629 – –Parks and reserves 1058 (1&2) 195 52 718 857Other 1058 (1&2) 1,806 790 40 22Total specific purpose 16,983 8,966 28,515 21,123

Total grants 33,835 25,945 28,515 21,123

Grant revenue is attributable to:– Commonwealth funding 23,437 17,245 257 377– State funding 10,398 8,700 28,258 20,746 33,835 25,945 28,515 21,123






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§Note/Subtotal§

Operating Operating Capital CapitalAASB 2020 2019 2020 2019

Actual Actual Actual ActualNotes $ '000 $ '000 $ '000 $ '000

(e) Contributions

Developer contributions:(s7.4 & s7.11 - EP&A Act, s64 of the LGA):Cash contributionsS 7.11 – contributions towards amenities/services 1058 (1) – – 97,420 55,606Voluntary planning agreements 1058 (1) – – 952 229NSW local infrastructure growth scheme 1058 (1) – – 35,515 24,669Total developer contributions – cash – – 133,887 80,504

Non-cash contributionsS 7.11 – contributions towards amenities/services 1058 (1) – – 24,382 61,299Total developer contributions non-cash – – 24,382 61,299

Total developer contributions 27 – – 158,269 141,803

Other contributions:Cash contributionsAnimal control 1058 (1) 698 624 – –Contributions to outgoings – investment properties 1058 (1) – 345 – –Paving 1058 (1) – – 7,215 1,423Roads and bridges 1058 (1) – – 4,560 3,116Parks and reserves 1058 (1) 596 1,163 247 1,097Other 1058 (1) 1,079 975 818 1,790RMS contributions (regional roads, block grant) 1058 (1) – – 2,734 3,291Waste services NSW 1058 (1) 6 1 – –Total other contributions – cash 2,379 3,108 15,574 10,717

Non-cash contributionsDedications 1058 (1) – – 11,357 15,606Drainage 1058 (1) – – 12,868 22,466Kerb and gutter 1058 (1) – – 6,095 7,706Recreation and culture 1058 (1) – – 2,409 7,313Roads and bridges 1058 (1) – – 23,090 35,155Total other contributions – non-cash – – 55,819 88,246

Total other contributions 2,379 3,108 71,393 98,963

Total contributions 2,379 3,108 229,662 240,766

TOTAL GRANTS AND CONTRIBUTIONS 36,214 29,053 258,177 261,889


15 (1) indicates income recognised under AASB 15 “at a point in time”,15 (2) indicates income recognised under AASB 15 “over time”,




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1058 (1) indicates income recognised under AASB 1058 “at a point in time”, while1058 (2) indicates income recognised under AASB 1058 “over time”.

Accounting policy from 1 July 2019

Accounting policy for grants and contributions

Grant income under AASB 15

Where grant income arises from an agreement which is enforceable and contains sufficiently specific performance obligationsthen the revenue is recognised when control of each performance obligations is satisfied.

The performance obligations are varied based on the agreement but include promotions, consultation, design, project officerrecruitment, audit program, design work for trunk drainage channels, culverts and stormwater treatment system. Paymentterms vary depending on the terms of the grant, cash is received upfront for some grants and on the achievement of certainpayment milestones for others.

Each performance obligation is considered to ensure that the revenue recognition reflects the transfer of control and withingrant agreements there may be some performance obligations where control transfers at a point in time and others which havecontinuous transfer of control over the life of the contract.

Where control is transferred over time, generally the input methods being either costs or time incurred are deemed to be themost appropriate methods to reflect the transfer of benefit.

Grant income

Assets arising from grants in the scope of AASB 1058 is recognised at the assets' fair value when the asset is received. Councilconsiders whether there are any related liability or equity items associated with the asset which are recognised in accordancewith the relevant accounting standard.

Once the assets and liabilities have been recognised then income is recognised for any remaining asset value at the timethat the asset is received

Capital grants

Capital grants received to enable Council to acquire or construct an item of infrastructure, property, plant and equipment toidentified specifications which will be under Council’s control and which is enforceable are recognised as revenue as and whenthe obligation to construct or purchase is completed.

For construction projects, this is generally as the construction progresses in accordance with costs incurred since this isdeemed to be the most appropriate measure of the completeness of the construction project as there is no profit margin.

For acquisitions of assets, the revenue is recognised when the asset is acquired and controlled by the Council.

Contributions

Council has obligations to provide facilities from contribution revenues levied on developers under the provisions of sections7.4, 7.11 and 7.12 of the Environmental Planning and Assessment Act 1979.

While Council generally incorporates these amounts as part of a Development Consents Order, such developer contributionsare only recognised as income on receipt by Council, due to the possibility that individual development consents may not beacted upon by the applicant and, accordingly, would not be payable to Council.

Developer contributions may only be expended for the purposes for which the contributions were required, but the Councilmay apply contributions according to the priorities established in work schedules

Accounting policy prior to 1 July 2019

Control over grants and contributions is normally obtained upon their receipt (or acquittal) and revenue is recognised at thistime and is valued at the fair value of the granted or contributed asset at the date of transfer.




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Where grants or contributions recognised as revenues during the financial year were obtained on condition that they beexpended in a particular manner, or used over a particular period, and those conditions were un-discharged at reporting date,the unused grant or contribution is disclosed below.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not beenprovided at reporting date.

2020 2019Actual Actual$ '000 $ '000

(f) Unspent grants and contributions – external restrictions

§Subnote§

Certain grants and contributions are obtained by Council on condition that they be spent in a specified manner due to externally imposed restrictions.

Operating grantsUnexpended at the close of the previous reporting period 7,156 7,703Add: operating grants recognised as income in the current period but not yet spent

(2019 only) – 917Less: operating grants recognised in a previous reporting period now spent (2019

only) – (1,464)Less: operating grants received in a previous reporting period now spent and

recognised as income (1,363) –Unexpended and held as externally restricted assets (operating grants) 5,793 7,156

Capital grantsUnexpended at the close of the previous reporting period 21,513 20,345Add: capital grants recognised as income in the current period but not yet spent

(2019 only) – 3,615Less: capital grants recognised in a previous reporting period now spent (2019 only) – (2,447)Less: capital grants received in a previous reporting period now spent and

recognised as income (2,872) –Unexpended and held as externally restricted assets (capital grants) 18,641 21,513

ContributionsUnexpended at the close of the previous reporting period 249,156 247,502Add: contributions recognised as income in the current period but not yet spent 101,461 36,801Less: contributions recognised in a previous reporting period now spent (83,539) (35,147)Unexpended and held as externally restricted assets (contributions) 267,078 249,156




Page 27 of 104




§Note/Subtotal§

AASB 15 AASB 10582020 2020

Actual Actual$ '000 $ '000

(g) Disaggregation of material revenue streams

The following shows the revenue recognition pattern for the material revenue streams of Council.

Revenue recognition at a point in timeRates and annual charges – 239,587Financial assistance grants – 16,852User charges and fees 14,488 –Grant revenue and non-developer contributions – 85,925Developer contributions – 158,269Fines – 3,001Sale of goods 1,311 –Recycling income 572 –Reinstatement of roads and footpaths 2,199 –Other 2,440 858 21,010 504,492

Revenue recognised over timeGrant revenue 4,807 23Grants to acquire or construct Council controlled assets – 28,514User charges and fees 22,704 –Other 799 –

28,310 28,537




Page 28 of 104




§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

§Subnote§

Interest on financial assets measured at amortised cost– Overdue rates and annual charges (incl. special purpose rates) 614 610– Cash and investments 10,600 15,453Total Interest and investment income 11,214 16,063

Interest revenue is attributable to:Unrestricted investments/financial assets:Overdue rates and annual charges (general fund) 614 610General Council cash and investments 3,268 3,630Restricted investments/funds – external:Development contributions– Development contributions 3,902 6,123Other externally restricted assets 665 959Restricted investments/funds – internal:Internally restricted assets 2,765 4,741Total interest and investment revenue 11,214 16,063

Interest income is recognised using the effective interest rate at the date that interest is earned.Accounting policy for interest and investment revenue

Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost ofthe investment.



Note 4. Interest and investment income

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Note 4. Interest and investment income


§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(a) Employee benefits and on-costs

§Subnote§

Salaries and wages 120,988 114,540Travel expenses 1,192 1,114Employee leave entitlements (ELE) 16,106 21,832Superannuation 13,390 12,967Workers’ compensation insurance 7,102 6,623Fringe benefit tax (FBT) 477 515Training costs (other than salaries and wages) 961 1,160Other 235 167Total employee costs 160,451 158,918

Less: capitalised costs (4,474) (3,789)TOTAL EMPLOYEE COSTS EXPENSED 155,977 155,129

Number of ‘full-time equivalent’ employees (FTE) at year end 1,464 1,406

Employee benefit expenses are recorded when the service has been provided by the employee.Accounting policy for employee benefits and on-costs

Retirement benefit obligations

All employees of the Council are entitled to benefits on retirement, disability or death. Council contributes to various definedbenefit plans and defined contribution plans on behalf of its employees.

Superannuation plans

Contributions to defined contribution plans are recognised as an expense as they become payable. Prepaid contributions arerecognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Council participates in a defined benefit plan under the Local Government Superannuation Scheme, however, sufficientinformation to account for the plan as a defined benefit is not available and therefore Council accounts for its obligations todefined benefit plans on the same basis as its obligations to defined contribution plans, i.e. as an expense when it becomespayable – refer to Note 21 for more information.

2020 2019Actual Actual$ '000 $ '000

(b) Borrowing costs

§Subnote§

(i) Interest bearing liability costsInterest on leases 27 –Total interest bearing liability costs 27 –

Total interest bearing liability costs expensed 27 –

TOTAL BORROWING COSTS EXPENSED 27 –

Accounting policy for borrowing costsBorrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed as incurred.



Note 5. Expenses from continuing operations

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Note 5. Expenses from continuing operations


§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(c) Materials and contracts

Raw materials and consumables 14,065 14,174Contractor and consultancy costs 17,113 15,625– Cleaning 2,298 2,298– Computer support 3,490 2,927– Garbage and recycling 7,577 7,060– Repairs and maintenance 12,749 17,659– Waste disposal contract (reclasssifed from (d) Other expenses) 25,989 24,577Auditors remuneration 2 220 199Legal expenses:– Legal expenses: planning and development 2,245 1,683– Legal expenses: other 1,301 861Expenses from short-term leases (2020 only) 47 –Expenses from leases of low value assets (2020 only) 7 –Variable lease expense relating to usage (2020 only) 2,060 –Operating leases expense (2019 only):– Operating lease rentals: minimum lease payments 1 – 425TOTAL MATERIALS AND CONTRACTS 89,161 87,488

Expenses are recorded on an accruals basis as the council receives the goods or services.Accounting policy for materials and contracts

Operating leases (2019 only)Leases in which a significant portion of the risks and rewards of ownership are not transferred to Council as lessee are classifiedas operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged tothe income statement on a straight-line basis over the period of the lease.

1. Operating lease payments are attributable to:Motor vehicles – 73Other – 352 – 425

2. Auditor remunerationDuring the year, the following fees were incurred for services provided by the auditor of Council, related practices and non-related audit firmsAuditors of the Council - NSW Auditor-General:

(i) Audit and other assurance servicesAudit and review of financial statements 220 150Remuneration for audit and other assurance services 220 150

Total Auditor-General remuneration 220 150

Non NSW Auditor-General audit firms

(i) Audit and other assurance servicesAudit and review of financial statements – 49Remuneration for audit and other assurance services – 49

Total remuneration of non NSW Auditor-General audit firms – 49

Total Auditor remuneration 220 199



Note 5. Expenses from continuing operations (continued)

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§Note/Subtotal§

2020 2019

ActualRestated

ActualNotes $ '000 $ '000

(d) Depreciation, amortisation and impairment of non-financial assets

Depreciation and amortisationPlant and equipment 6,521 6,114Office equipment 589 953Furniture and fittings 299 320Land improvements (depreciable) 6,594 6,465Infrastructure: 10(a)

– Buildings 7,615 7,936– Roads 32,859 32,414– Bridges 653 584– Footpaths 3,257 3,725– Other road assets 1,745 1,741– Stormwater drainage 10,438 9,825– Swimming pools 140 139Right of use assets 14 708 –Other assets:– Library books 710 733– Other 4 3Intangible assets 12 1,301 1,322Total gross depreciation and amortisation costs 73,433 72,274

Total depreciation and amortisation costs 73,433 72,274

TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT FOR NON-FINANCIAL ASSETS 73,433 72,274

Accounting policy for depreciation, amortisation and impairment expenses of non-financial assets

Depreciation and amortisationDepreciation and amortisation are calculated using the straight line method to allocate their cost, net of their residual values,over their estimated useful lives. Useful lives are included in Note 10 for IPPE assets and Note 12 for intangible assets.

Council assets held at fair value that are not held primarily for their ability to generate net cash flow, and that are deemed to bespecialised, are no longer required to be tested for impairment under AASB 136. This is because these assets are assessedon an annual basis to ensure that the carrying amount is not materially different from fair value and therefore an impairmentloss would be captured during this assessment.

Impairment of non-financial assets

Intangible assets that have an indefinite useful life, or are not yet available for use, are tested annually for impairment, or morefrequently if events or changes in circumstances indicate that they might be impaired. Other assets that do not meet the criteriaabove are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not berecoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverableamount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiablecash inflows that are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Impairment losses for revalued assets are firstly offset against the amount in the revaluation surplus for the class of asset,with only the excess to be recognised in the Income Statement.




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§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(e) Other expenses

Bad and doubtful debts 363 235Bank charges / credit card charges 447 417Contributions/levies to other levels of government– Department of planning levy 249 243– Emergency services levy (includes FRNSW, SES, and RFS levies) 2,945 2,777– Waste levy 8,050 7,636Councillor expenses – mayoral fee 89 86Councillor expenses – councillors’ fees 434 445Councillors’ expenses (incl. mayor) – other (excluding fees above) 228 316Donations, contributions and assistance to other organisations (Section 356) 528 581– Hawkesbury River County Council 189 175Electricity and heating 3,381 3,577Fee relief advance to carers 2,199 1,992Insurance 3,971 3,728Marketing / promotions 478 519Parking patrol 306 415Post office agency charges 229 241Postage, courier and freight 745 833Street lighting 9,271 6,789Telephone and communications 1,961 2,151Valuation fees 737 790Water rates and charges 2,037 1,993Refund of Unexpended Grants/Contributions 1 551Other 2,846 2,205Total other expenses 41,684 38,695TOTAL OTHER EXPENSES 41,684 38,695

Accounting policy for other expensesOther expenses are recorded on an accruals basis as the Council receives the goods or services.




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2020 2019Actual Actual

Notes $ '000 $ '000

Property (excl. investment property)Less: carrying amount of property assets sold/written off (153) (881)Net gain/(loss) on disposal (153) (881)

Plant and equipment 10(a)

Proceeds from disposal – plant and equipment 3,222 3,024Less: carrying amount of plant and equipment assets sold/written off (2,748) (2,654)Net gain/(loss) on disposal 474 370

Infrastructure 10(a)

Less: carrying amount of infrastructure assets sold/written off (3,903) (5,810)Net gain/(loss) on disposal (3,903) (5,810)

Real estate assets held for sale 9

Proceeds from disposal – real estate assets 35,523 8,883Less: carrying amount of real estate assets sold/written off (11,082) (3,632)Net gain/(loss) on disposal 24,441 5,251

Investment properties 11

Less: carrying amount of investment property sold/written off – (378)Net gain/(loss) on disposal – (378)

Investments 7(b)

Proceeds from disposal/redemptions/maturities – investments 540,000 405,000Less: carrying amount of investments sold/redeemed/matured (540,000) (405,000)Net gain/(loss) on disposal – –

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS 20,859 (1,448)

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the IncomeStatement.

Accounting policy for disposal of assets

The gain or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer and theasset is de-recognised.



Note 6. Gains or losses from the disposal

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Note 6. Gains or losses from the disposal

§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

§Subnote§

Cash and cash equivalentsCash on hand and at bank 23,362 17,439Cash-equivalent assets– Deposits at call 33,811 23,506– Short-term deposits 130,000 142,000Total cash and cash equivalents 187,173 182,945

Accounting policy for cash and cash equivalentsFor Statement of Cash Flow presentation purposes, cash and cash equivalents include: cash on hand; deposits held at call with financial institutions; other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.

Note 7(b). Investments§Note§

2020 2020 2019 2019Current Non-current Current Non-currentActual Actual Actual Actual$ '000 $ '000 $ '000 $ '000

§Subnote§

Investments‘Financial assets at amortised cost’ 345,000 87,000 300,000 62,000Total Investments 345,000 87,000 300,000 62,000

TOTAL CASH ASSETS, CASH EQUIVALENTS AND INVESTMENTS 532,173 87,000 482,945 62,000

Financial assets at amortised costLong term deposits 340,000 40,000 300,000 25,000NCD’s, FRN’s (with maturities > 3 months) 5,000 47,000 – 37,000Total 345,000 87,000 300,000 62,000 §Subnote§

Accounting policy for investments

Financial instruments are recognised initially on the date that the Council becomes party to the contractual provisions of theinstrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instrumentsmeasured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial assetsAll recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

On initial recognition, Council classifies its financial assets into the following categories – those measured at:Classification

• amortised cost• fair value through profit and loss (FVTPL)• fair value through other comprehensive income – equity instrument (FVOCI-equity)

Financial assets are not reclassified subsequent to their initial recognition.




Note 7(a). Cash and cash equivalents

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Note 7(a). Cash and cash equivalents

Amortised costAssets measured at amortised cost are financial assets where:• the business model is to hold assets to collect contractual cash flows, and• the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on

the principal amount outstanding.

Council’s financial assets measured at amortised cost comprise trade and other receivables,term deposits and cash and cashequivalents in the Statement of Financial Position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method lessprovision for impairment.

Interest income, impairment and gains or loss on de-recognition are recognised in profit or loss.

Council has a number of strategic investments in entities over which they do not have significant influence nor control. Councilhas made an irrevocable election to classify these equity investments as fair value through other comprehensive income asthey are not held for trading purposes.

Fair value through other comprehensive income – equity instruments

These investments are carried at fair value with changes in fair value recognised in other comprehensive income (financialasset reserve). On disposal any balance in the financial asset reserve is transferred to accumulated surplus and is notreclassified to profit or loss.

Other net gains and losses excluding dividends are recognised in Other Comprehensive Income Statement.

All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as describedabove are measured at fair value through profit or loss.

Financial assets through profit or loss

Net gains or losses, including any interest or dividend income, are recognised in profit or loss.

Council’s financial assets measured at fair value through profit or loss comprise investments in FRNs and NCDs in theStatement of Financial Position.



Note 7(b). Investments (continued)

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Note 7(b). Investments (continued)




Total cash, cash equivalents and investments 532,173 87,000 482,945 62,000

§Total§

attributable to:External restrictions 236,158 87,000 240,577 62,000Internal restrictions 248,954 – 221,190 –Unrestricted 47,061 – 21,178 –

532,173 87,000 482,945 62,000

2020 2019Actual Actual$ '000 $ '000

Details of restrictions

§Total§

External restrictions – included in liabilitiesSpecific purpose unexpended grants – general fund (2020 only) 18,149 –External restrictions – included in liabilities 18,149 –

External restrictions – otherDeveloper contributions – general 213,048 206,654Voluntary planning agreements 8,411 7,320RMS (formerly RTA) contributions 1,046 877Specific purpose unexpended grants (recognised as revenue) – general fund 6,285 28,669Domestic waste management 26,905 21,142Stormwater management 4,741 3,610Subdivider contributions 39,378 29,084Contribution to works 3,032 3,676Other 2,163 1,545External restrictions – other 305,009 302,577

Total external restrictions 323,158 302,577



Note 7(c). Restricted cash, cash equivalents and investments

Page 37 of 104



Note 7(c). Restricted cash, cash equivalents and investments

§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

Internal restrictionsAquatics reserve 484 547Asbestos removal crisis reserve 42 42Asset renewal reserve 5,560 5,216Badgerys Creek airport reserve 32 32Blacktown leisure centre, Stanhope* 2,367 2,335Blacktown venue management Ltd reserve 1,327 1,370Business technology reserve 2,271 1,942Childcare centres improvement 450 161CivicRisk reserve 2,680 896Companion animal reserve 1,066 642Deposits, retentions and bonds 47,944 42,986Deregulated approvals reserve 1,903 2,461E-business strategy reserve 4,979 4,896Employees' leave entitlement 1 15,510 10,510Energy and water fund reserve 425 629Equipment replacement reserve 658 678Family day care 252 252Future election expenses 1,815 1,072Historical buildings restoration 1,021 970Infrastructure sinking fund 29,642 30,807Internal s7.11 contributions 1,445 1,283Land projects reserves 31,188 60,494Major parks reserve 367 367Nurragingy reserve 229 229Other 13,456 12,806Other plant replacement 5,079 3,622PC replacement reserve 1,022 2,605Playground replacement reserve 1,099 1,230Printing equipment replacement 71 71Riverstone cemetery reserve 2,023 1,864Second Ponds Creek trunk drainage and bushcare 15,361 15,639St Bartholomew’s church restoration 24 24Street lighting reserve 480 2,016Transformational Projects Reserve 44,476 6,864Urgent works reserve 1,052 1,052Woodcroft reserve 129 129Workers compensation self insurance claims 5,265 1,833Blacktown showground 912 618COVID-19 budget response reserve 4,848 –Total internal restrictions 248,954 221,190

TOTAL RESTRICTIONS 572,112 523,767

§Total§

(1) Council adopted (report CS 390179 dated 16 October 2019) ELE funding strategy to bring forward $5 million from land projects internal reserves. This borrowing will be repaid over the next 5 years as part of the funding strategy for the acquisition of 81-85 Flushscombe Road



Note 7(c). Restricted cash, cash equivalents and investments (continued)

Page 38 of 104



Note 7(c). Restricted cash, cash equivalents and investments (continued)


§Note/Subtotal§


§Subnote§

PurposeRates and annual charges 8,394 2,775 7,957 2,324Interest and extra charges 704 228 665 194User charges and fees 3,153 – 3,968 –Capital debtors (being sale of assets)– Sale of land 1,407 – 3,636 –– Other asset sales 344 – 26 –Accrued revenues– Interest on investments 2,445 – 5,161 –Net investment in finance lease – – – –Government grants and subsidies 9 – 8,809 –Legal costs on outstanding rates 115 – 184 –Net GST receivable 2,417 – 4,625 –Restorations 465 – 389 –Section 611 charges 223 – 210 –Other debtors 2,115 – 988 –Total 21,791 3,003 36,618 2,518

Less: provision of impairmentRates and annual charges (253) (285) (224) (336)Interest and extra charges (166) (53) (150) (63)Other debtors (599) – (511) –Total provision for impairment – receivables (1,018) (338) (885) (399)

TOTAL NET RECEIVABLES 20,773 2,665 35,733 2,119

§Subnote§

Externally restricted receivablesDomestic waste management 2,885 – 2,502 –Total external restrictions 2,885 – 2,502 –

Internally restricted receivablesCapital – sale of land 1,407 – 3,636 –Internally restricted receivables 1,407 – 3,636 –

Unrestricted receivables 16,481 2,665 29,595 2,119

TOTAL NET RECEIVABLES 20,773 2,665 35,733 2,119

2020 2019Actual Actual$ '000 $ '000

§Subnote§

Movement in provision for impairment of receivablesBalance at the beginning of the year (calculated in accordance with AASB 139) 1,284 1,180+ new provisions recognised during the year 346 186– amounts already provided for and written off this year (275) (82)Balance at the end of the year 1,355 1,284



Note 8. Receivables

Page 39 of 104



Note 8. Receivables

§Note/Subtotal§

Accounting policy for receivables

Receivables are included in current assets, except for those with maturities greater than 12 months after the reporting datewhich are classified as non-current assets.

Recognition and measurement

Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interestmethod, less provision for impairment. Receivables are generally due for settlement within 30 days.

Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

Impairment of financial assets measured at amortised cost is recognised on an expected credit loss (ECL) basis.Impairment

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, and whenestimating ECL, the Council considers reasonable and supportable information that is relevant and available without unduecost or effort. This includes both quantitative and qualitative information and analysis based on Council’s historical experienceand informed credit assessment, and including forward-looking information.

When considering the ECL for rates debtors, Council takes into account that unpaid rates represent a charge against therateable property that will be recovered when the property is next sold. For non-rates debtors, Council uses the presumptionthat an asset which is more than 30 days past due has seen a significant increase in credit risk.

The Council uses the presentation that a financial asset is in default when:• the other party is unlikely to pay its credit obligations to the Council in full, without recourse by the Council to actions

such as realising security (if any is held) or• the financial assets (for non-rates debtors) are more than 90 days past due.

Credit losses are measured as the present value of the difference between the cash flows due to the entity in accordance withthe contract, and the cash flows expected to be received. This is applied using a probability weighted approach.

On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where theasset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.

Council uses the simplified approach for trade receivables where the expected lifetime credit losses are recognised on day 1.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The Council writes off a trade receivable when there is information indicating that the debtor is in severe financial difficultyand there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered intobankruptcy proceedings whichever occurs first.

Rates and annual charges outstanding are secured against the property.



Note 8. Receivables (continued)

Page 40 of 104



Note 8. Receivables (continued)


§Note/Subtotal§


(a) Inventories

§Subnote§

(i) Inventories at costReal estate for resale 10,414 45,102 19,214 39,665Stores and materials 1,892 – 2,980 –Total inventories at cost 12,306 45,102 22,194 39,665

TOTAL INVENTORIES 12,306 45,102 22,194 39,665

(b) Other assets§Subnote§

Prepayments 937 – 939 –Land acquisition in progress 618 – 1,200 –TOTAL OTHER ASSETS 1,555 – 2,139 –

(i) Other disclosures§Subnote§§Total§

2020 2020 2019 2019Current Non-current Current Non-currentActual Actual Actual Actual

Notes $ '000 $ '000 $ '000 $ '000

(a) Details for real estate developmentResidential 1,590 41,908 10,120 37,180Industrial/commercial 8,824 3,194 9,094 2,485Total real estate for resale 10,414 45,102 19,214 39,665

(Valued at the lower of cost and net realisable value)Represented by:Acquisition costs 4,642 20,219 8,801 18,169Development costs 5,772 24,883 10,413 21,496Total costs 10,414 45,102 19,214 39,665

Total real estate for resale 10,414 45,102 19,214 39,665

Movements:Real estate assets at beginning of the year 19,214 39,665 8,710 50,590– Purchases and other costs 2,582 1,975 2,236 902– Transfers in from (out to) Note 11 3,162 – 73 –– WDV of sales (expense) 6 (11,082) – (3,632) –– Transfer between current/non-current (3,462) 3,462 11,827 (11,827)Total real estate for resale 10,414 45,102 19,214 39,665



Note 9. Inventories and other assets

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Note 9. Inventories and other assets

§Note/Subtotal§

Accounting policy for inventories and other assets

Raw materials and stores, work in progress and finished goodsRaw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification andincludes the cost of acquisition, and development and borrowing costs during development. When development is completed,borrowing costs and other holding charges are expensed as incurred.

Land held for resale/capitalisation of borrowing costs

Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if the expenditureon the acquisition and development of the land had not been made. Borrowing costs incurred while active development isinterrupted for extended periods are recognised as expenses.



Note 9. Inventories and other assets (continued)

Page 42 of 104



Note 9. Inventories and other assets (continued)


§Note/Subtotal§

as at 30/06/19 Asset movements during the reporting period as at 30/06/20

Gross carrying amount

Accumulated depreciation

Netcarryingamount Additions

renewals 1Additions

new assets

Carrying value of

disposalsDepreciation

expenseWIP

transfers

Adjustmentsand

transfers

Tfrs from/(to)

real estate assets (Note

9)

Revaluation decrements

to equity (ARR)

Revaluation increments

to equity (ARR)



Netcarryingamount

Restated Restated$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

§Subnote§

Capital work in progress 169,191 – 169,191 25,766 108,751 – – (18,816) (245) (810) – – 283,837 – 283,837Plant and equipment 81,543 (49,313) 32,230 6,669 998 (2,448) (6,521) 51 – – – – 81,640 (50,661) 30,979Office equipment 24,131 (20,548) 3,583 1,180 124 (180) (589) 327 – – – – 23,966 (19,521) 4,445Furniture and fittings 9,712 (8,229) 1,483 654 – – (299) – – – – – 10,366 (8,528) 1,838Land:– Operational 741,898 – 741,898 – 23,272 – – – 381 (2,296) – – 763,255 – 763,255– Community 770,013 – 770,013 – 52,431 – – – (1,844) (20) (40,778) – 779,802 – 779,802– Crown land 18,592 – 18,592 – – – – – – – – – 18,592 – 18,592– Land under roads (post 30/6/08) 90,979 – 90,979 – 15,230 – – – 1,463 – (3,647) 22,181 126,206 – 126,206Land improvements – non-depreciable 5,552 – 5,552 – – – – 23 – – – – 5,575 – 5,575Land improvements – depreciable 192,362 (69,369) 122,993 605 1,474 (154) (6,594) 1,730 22,742 – – – 225,717 (82,921) 142,796Infrastructure:– Buildings 466,870 (124,716) 342,154 1,681 1,590 (1,450) (7,615) 787 – (36) – – 469,378 (132,267) 337,111– Roads 1,725,023 (673,307) 1,051,716 13,469 27,463 (2,347) (32,859) 7,146 (1,295) – – 187,331 1,859,872 (609,248) 1,250,624– Bridges 57,698 (16,004) 41,694 – – – (653) – – – – 20,395 73,911 (12,475) 61,436– Footpaths 220,467 (80,528) 139,939 325 2,675 (12) (3,257) 1,211 (21,448) – – 39,615 222,942 (63,894) 159,048– Other road assets 87,573 (26,281) 61,292 146 562 (95) (1,745) 254 – – – 23,696 112,119 (28,009) 84,110– Bulk earthworks (non-depreciable) 28,923 – 28,923 – – – – 144 – – – – 29,067 – 29,067– Stormwater drainage 820,533 (230,567) 589,966 614 18,408 – (10,438) 3,334 – – – 51,185 918,023 (264,954) 653,069– Stormwater drainage (non-depreciable) 67,963 – 67,963 1,906 2,603 – – 3,813 – – – – 76,285 – 76,285– Swimming pools 5,437 (2,233) 3,204 176 – – (140) – – – – 2,207 10,360 (4,913) 5,447Other assets:– Library books 10,850 (8,621) 2,229 – 591 (121) (710) – – – – – 10,833 (8,844) 1,989– Other 101 (81) 20 – – – (4) – 1 – – – 101 (84) 17Total Infrastructure, property, plant and equipment 5,595,411 (1,309,797) 4,285,614 53,191 256,172 (6,807) (71,424) 4 (245) (3,162) (44,425) 346,610 6,101,847 (1,286,319) 4,815,528

(1) Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).



Note 10(a). Infrastructure, property, plant and equipment

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Note 10(a). Infrastructure, property, plant and equipment


§Note/Subtotal§

as at 30/06/18 Asset movements during the reporting period as at 30/06/19



Netcarryingamount Additions

renewals 1Additions

new assets

Carrying value of

disposals

Deprec-iation

expense WIP transfers

Adjust-ments and

transfers

Tfrs from/(to) real estate

assets (Note 9)

Reval-uation

decrements to equity

(ARR)Gross carrying

amountAccumulated depreciation

Netcarryingamount

Restated Restated Restated Restated Restated Restated$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Capital work in progress 88,448 – 88,448 23,921 102,134 – – (44,899) (413) – – 169,191 – 169,191Plant and equipment 74,781 (47,405) 27,376 12,410 1,125 (2,613) (6,114) 46 – – – 81,543 (49,313) 32,230Office equipment 23,904 (19,595) 4,309 227 – – (953) – – – – 24,131 (20,548) 3,583Furniture and fittings 9,259 (7,909) 1,350 453 – – (320) – – – – 9,712 (8,229) 1,483Land:– Operational 726,141 – 726,141 – 15,757 – – – – – – 741,898 – 741,898– Community 744,902 – 744,902 – 50,672 – – 3,108 (136) – (28,533) 770,013 – 770,013– Crown land 18,592 – 18,592 – – – – – – – – 18,592 – 18,592– Land under roads (post 30/6/08) 75,373 – 75,373 – 15,606 – – – – – – 90,979 – 90,979Land improvements – non-depreciable 3,748 – 3,748 111 – – – 1,693 – – – 5,552 – 5,552Land improvements – depreciable 183,472 (64,433) 119,039 809 3,108 (881) (6,465) 6,781 602 – – 192,362 (69,369) 122,993Infrastructure:– Buildings 457,019 (117,143) 339,876 1,872 8,052 (3,513) (7,936) 3,740 136 (73) – 466,870 (124,716) 342,154– Roads 1,671,815 (644,919) 1,026,896 11,998 43,822 (1,603) (32,414) 3,073 (56) – – 1,725,023 (673,307) 1,051,716– Bridges 52,163 (15,422) 36,741 – 2,432 (1) (584) 3,106 – – – 57,698 (16,004) 41,694– Footpaths 217,131 (76,547) 140,584 818 3,233 (533) (3,725) 104 (542) – – 220,467 (80,528) 139,939– Other road assets 84,780 (24,766) 60,014 478 2,287 (114) (1,741) 368 – – – 87,573 (26,281) 61,292– Bulk earthworks (non-depreciable) 27,998 – 27,998 44 344 – – 1,341 (804) – – 28,923 – 28,923– Stormwater drainage 790,636 (220,625) 570,011 131 25,587 (45) (9,825) 4,112 (5) – – 820,533 (230,567) 589,966– Stormwater drainage (non-depreciable) 44,938 – 44,938 – 4,793 – – 17,427 805 – – 67,963 – 67,963– Swimming pools 5,437 (2,094) 3,343 – – – (139) – – – – 5,437 (2,233) 3,204Other assets:– Library books 11,656 (9,280) 2,376 – 627 (41) (733) – – – – 10,850 (8,621) 2,229– Other 101 (78) 23 – – – (3) – – – – 101 (81) 20Total Infrastructure, property, plant and equipment 5,312,294 (1,250,216) 4,062,078 53,272 279,579 (9,344) (70,952) – (413) (73) (28,533) 5,595,411 (1,309,797) 4,285,614

(1) Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).



Note 10(a). Infrastructure, property, plant and equipment (continued)

Page 44 of 104




§Note/Subtotal§

Infrastructure, property, plant and equipment are held at fair value. Independent comprehensive valuations are performed atleast every five years, however the carrying amount of assets is assessed by Council at each reporting date to confirm thatit is not materially different from current fair value.

Accounting policy for infrastructure, property, plant and equipment

Increases in the carrying amounts arising on revaluation are credited to the revaluation reserve. To the extent that the increasereverses a decrease previously recognising profit or loss relating to that asset class, the increase is first recognised as profitor loss. Decreases that reverse previous increases of assets in the same class are first charged against revaluation reservesdirectly in equity to the extent of the remaining reserve attributable to the class; all other decreases are charged to the IncomeStatement.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when itis probable that future economic benefits associated with the item will flow to Council and the cost of the item can be measuredreliably. All other repairs and maintenance are charged to the Income Statement during the financial period in which they areincurred.

When infrastructure, property, plant and equipment are acquired by Council for nil or nominal consideration, the assets areinitially recognised at their fair value at acquisition date.

Land is not depreciated. The property, plant and equipment acquired under finance leases is depreciated over the asset’suseful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Councilwill obtain ownership at the end of the lease term. Depreciation on other assets is calculated using the straight-line method toallocate their cost, net of their residual values, over their estimated useful lives as follows:

Plant and equipment Years Stormwater assets YearsOffice equipment 10 Conduit 80 to 100Office furniture 10 Node 70 to 100Computer equipment 5 Pollution control devices 10 to 50Vehicles 5 to 8 Waterways 50 to 100Heavy plant/road making equipment 5 to 10 WSUD 20Other plant and equipment 3 to 10 Basin 80

Transportation assets Other equipment

Road pavement base 38 Playground equipment 10 to 25Road pavement sub base 76 Other land improvements 6 to 100Kerb & gutter 76 to 80Road seal 22 BuildingsMedians 60 to 76 Buildings 5 to 185Unsealed roads 15 to 76Bridges 15 to 100 Other infrastructure assetsFootpaths 50 to 60 Swimming pools 12 to 80Car parking 50 to 60 Bulk earthworks InfiniteTraffic Control Devices 50

OtherLibrary books 5

The assets’ useful lives are reviewed, and adjusted if appropriate, at each reporting date. Gains and losses on disposals aredetermined by comparing proceeds with carrying amount. These are included in the Income statement.

Residual values only apply to Leasebacks, Major and Minor plant. The residual value is 10%.





Page 45 of 104




The useful life of an asset is an estimate or expected duration between placing the asset into service and removing it fromservice on the basis of obsolescence or when it ceases to provide the ‘minimum benefits’ that it was intended to provide. In shortit is the period between which the future economic benefits embodied in that asset are expected to be consumed by the users.

Since the useful life of an asset is defined in terms of the asset’s expected utility to the entity; the useful life of an asset maybe shorter than its economic life.

AASB116 requires that the initial estimate of useful life should be based on evidence that is specifically drawn from theassessment of:

1. Expected usage2. Physical use3. Wear and tear4. Technical, commercial or physical obsolescence5. Legal and other restrictions on the use of the asset.

Land under roads is land under roadways and road reserves including land under footpaths, nature strips and median strips.Land under roads

Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051 LandUnder Roads.

Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 Property, Plant and Equipment.

Crown reserves under Council’s care and control are recognised as assets of the Council. While ownership of the reservesremains with the Crown, Council retains operational control of the reserves and is responsible for their maintenance and usein accordance with the specific purposes to which the reserves are dedicated.

Crown reserves

Improvements on Crown reserves are also recorded as assets, while maintenance costs incurred by Council and revenuesrelating to the reserves are recognised within Council’s Income Statement.

Under Section 119 of the Rural Fire Services Act 1997 (NSW), “all firefighting equipment purchased or constructed whollyor from money to the credit of the Fund is to be vested in the council of the area for or on behalf of which the firefightingequipment has been purchased or constructed”.

Rural Fire Service assets

These Rural Fire Service assets are recognised as assets of the Council in these financial statements.

Note 10(b). Infrastructure, property, plant and equipment – current year impairments§Note§


Notes $ '000 $ '000

§Subnote§

(i) Impairment losses recognised direct to equity (ARR):Community land revaluation in accordance to Valuer General’s guide 40,778 28,533Total impairment losses 40,778 28,533

IMPAIRMENT OF ASSETS – DIRECT to EQUITY (ARR) 40,778 28,533




Page 46 of 104





§Note/Subtotal§

2020 2019$ '000 $ '000

§Subnote§

Owned investment propertyInvestment property on hand at fair value 181,216 78,688Total owned investment property 181,216 78,688

(a) Reconciliation – owned investment property§Subnote§

Reconciliation of annual movement:Opening balance 78,688 75,409– Capitalised expenditure – this year 2,024 579– Disposals during year – (378)– Net gain/(loss) from fair value adjustments 100,504 3,078CLOSING BALANCE – OWNED INVESTMENT PROPERTY 181,216 78,688

(b) Valuation basis§Subnote§

The basis of valuation of investment properties is fair value, being the amounts for which the properties could be exchangedbetween willing parties in arms length transaction, based on current prices in an active market for similar properties in thesame location and condition and subject to similar leases.

The 2017 revaluations were based on independent assessments made by: APV Valuers & Assets Management Pty Ltd.The 2018 movements were based on relevant property price index.The 2020 revaluations were based on assessment by AVP valuers: APV Valuers & Assets Management Pty Ltd.The Value of the investment properties as at 30 June 2019 was determined by an internal assessment of the market

(c) Contractual obligations at reporting date (2019 only)§Subnote§

Refer to Note 17 for disclosures relating to any capital and service obligations that have been contracted.

2020 2019Actual Actual$ '000 $ '000

(d) Leasing arrangements – Council as lessor (2019 only)

§Subnote§

The investment properties are leased to tenants under long-term operating leases withrentals payable monthly.Future minimum lease payments receivable under non-cancellable investment property operating leases not recognised in the financial statements are receivable as follows:Within 1 year – 2,159Later than 1 year but less than 5 years – 3,575Later than 5 years – 84Total minimum lease payments receivable – 5,818



Note 11. Investment properties

Page 47 of 104



Note 11. Investment properties

§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(e) Investment property income and expenditure – summary (2019 only)

Rental income from investment property:– Minimum lease payments – 4,185– Other income – 345Direct operating expenses on investment property:– that generated rental income – (2,041)Net revenue contribution from investment property – 2,489

plus:Fair value movement for year 100,504 3,078Total income attributable to investment property 100,504 5,567

Investment property, principally comprising freehold office buildings, is held for long-term rental yields and is not occupied bythe Council. Changes in fair values are recorded in the Income Statement as a separate line item.

Accounting policy for investment property

Properties that are under construction for future use as investment properties are regarded as investment property. These arealso carried at fair value unless the fair value cannot yet be reliably determined. Where that is the case, the property will beaccounted for at cost until either the fair value becomes reliably determinable or construction is complete.



Note 11. Investment properties (continued)

Page 48 of 104



Note 11. Investment properties (continued)


Intangible assets are as follows:

2020 2019Actual Actual$ '000 $ '000

Software

§Subnote§

Opening values at 1 JulyGross book value 7,810 7,692Accumulated amortisation (5,602) (4,280)Net book value – opening balance 2,208 3,412

Movements for the year– Other movements – 58– Purchases 327 60

– Amortisation charges (1,301) (1,322)

Closing values at 30 juneGross book value 7,980 7,810Accumulated amortisation (6,746) (5,602)

Total software – net book value 1,234 2,208

§Subnote§

TOTAL INTANGIBLE ASSETS – NET BOOK VALUE 1,234 2,208 §Subnote§

Accounting policy for intangible assets

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute tofuture period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems.

IT development and software

Costs capitalised include external direct costs of materials and service, direct payroll, and payroll related costs of employees’time spent on the project. Amortisation is calculated on a straight line basis over periods generally ranging from three to fiveyears. IT development costs include only those costs directly attributable to the development phase and are only recognisedfollowing completion of technical feasibility, and where Council has an intention and ability to use the asset.



Note 12. Intangible assets

Page 49 of 104



Note 12. Intangible assets


§Note/Subtotal§

2020 2020Current Non-currentActual Actual

Notes $ '000 $ '000

Contract liabilities

§Subnote§

Grants and contributions received in advance:Unexpended capital grants (to construct Council controlled assets) (i) 2,996 13,621Unexpended operating grants (received prior to performance obligation being satisified) (ii) 1,207 324

Unexpended capital contributions (to construct Council controlled assets) (i) 253 186Unexpended operating contributions (received prior to performance obligation being satisified) (ii) 15 –Total grants received in advance 4,471 14,131

User fees and charges received in advance:Funds received prior to performance obligation being satisfied (upfront payments) – AASB 15 9,448 1,951Deposits received in advance of services provided 2,321 31Upfront fees – leisure centre (iii) 281 –Other 43 –Total user fees and charges received in advance 12,093 1,982

Total contract liabilities 16,564 16,113

Notes(i) Council has received funding to construct assets including sporting facilities, bridges, library and other infrastructure. Thefunds received are under an enforceable contract which require Council to construct an identified asset which will be underCouncil’s control on completion. The revenue is recognised as Council constructs the asset and the contract liability reflects thefunding received which cannot yet be recognised as revenue. The revenue is expected to be recognised in the next 12 months.

(ii) The contract liability relates to grants received prior to the revenue recognition criteria in AASB 15 being satisfied sincethe performance obligations are ongoing.

(iii) Membership fees for the leisure centre do not meet the definition of a performance obligation and therefore the fundsreceived are recorded as a contract liability on receipt and recognised as revenue over the expected average membership life.

2020 2020Current Non-currentActual Actual$ '000 $ '000

(i) Contract liabilities relating to restricted assets

§Subnote§

Externally restricted assetsUnspent grants held as contract liabilities (excl. Water & Sewer) 4,203 13,946Contract liabilities relating to externally restricted assets 4,203 13,946

Total contract liabilities relating to restricted assets 4,203 13,946

Total contract liabilities relating to unrestricted assets 12,361 2,167

Total contract liabilities 16,564 16,113



Note 13. Contract assets and liabilities

Page 50 of 104



Note 13. Contract assets and liabilities

§Note/Subtotal§

2020Actual$ '000

(ii) Revenue recognised (during the financial year) from opening contract liability balances

Grants and contributions received in advance:Capital grants (to construct Council controlled assets) 3,517Operating grants (received prior to performance obligation being satisfied) 667Capital contributions (to construct Council controlled assets) 129

User Fees and Charges received in advance:Upfront fees – leisure centre 343Upfront fees – Applications 1,014Upfront fees – Certificates 255Total Revenue recognised during the financial year that was included in the contract liability balance at the beginning of the period 5,925 §Subnote§

Significant changes in contract assets and liabilitiesThe contract liabilities have arisen on adoption of AASB 15 and AASB 1058. Previously income received in advance was recognised for reciprocal contracts. The increase in a contract liability is primarily due to grants in the scope of AASB 15 andcapital grants received by Council to acquire or construct assets which will be under Council’s control. Previously, revenue was recognised on receipt of the funds.

Where the amounts billed to customers are based on the achievement of various milestones established in the contract, theamounts recognised as revenue in a given period do not necessarily coincide with the amounts billed to or certified by thecustomer.

Accounting policy for contract assets and liabilities

When a performance obligation is satisfied by transferring a promised good or service to the customer before the customerpays consideration or before the payment is due, Council presents the work in progress as a contract asset, unless the rightsto that amount of consideration are unconditional, in which case Council recognises a receivable.

When an amount of consideration is received from a customer / fund provider prior to Council transferring a good or serviceto the customer, Council presents the funds which exceed revenue recognised as a contract liability.



Note 13. Contract assets and liabilities (continued)

Page 51 of 104



Note 13. Contract assets and liabilities (continued)



The Council has applied AASB 16 using the modified retrospective (cumulative catch-up) method and therefore the comparative information has not been restated and continues to be reported under AASB 117 and related Interpretations.

(i) Council as a lessee

Council has leases over a range of assets including vehicles, machinery, sports and office equipment. Information relating tothe leases in place and associated balances and transactions is provided below.

Terms and conditions of leases

Council leases electric vehicles with lease terms of 2 years; the lease payments are fixed during the lease term.Vehicles

Leases for office equipment are generally for low value assets, except for significant items such as photocopiers. The leasesare for between 1 and 4 years with no renewal option, the payments are fixed, however some of the leases include variablepayments based on usage.

Office equipment

Council leases various gym equipments with lease terms of 4 years; the lease payments are fixed during the lease term andthere is generally no renewal option.

Gym equipment

As part of the new standard AASB16, council has identified embedded lease in relation to the lawn mowing contracts, thesecontracts is for the terms of 4 years

Machinery

Plant & Equipment Ready to use

Office equipment Total

Actual Actual Actual Actual$ '000 $ '000 $ '000 $ '000

(a) Right of use assets

§Subnote§

Opening balance at 30 June 2019 – – – –

Adoption of AASB 16 at 1 July 2019 – first time lease recognition 1,179 – – 1,179Additions to right-of-use assets 414 – – 414Depreciation charge – (708) – (708)RIGHT OF USE ASSETS 1,593 (708) – 885


(b) Lease liabilities

§Subnote§

Lease liabilities 905 –TOTAL LEASE LIABILITIES 905 –



Note 14. Leases

Page 52 of 104



Note 14. Leases


§Note/Subtotal§

(i) The maturity analysis

The maturity analysis of lease liabilities based on contractual undiscounted cash flows is shown in the table below:

< 1 year 1 – 5 years > 5 years Total

Total per Statement of

Financial Position

Actual Actual Actual Actual Actual$ '000 $ '000 $ '000 $ '000 $ '000

Cash flows 665 240 – 905 905


(ii) Lease liabilities relating to restricted assets

§Subnote§

Total lease liabilities relating to unrestricted assets 905 –

Total lease liabilities 905 –

2020Actual$ '000

(c) Income Statement

§Subnote§

The amounts recognised in the Income Statement relating to leases where Council is a lessee are shown below:

Interest on lease liabilities 27Variable lease payments based on usage not included in the measurement of lease liabilities 2,060Depreciation of right of use assets 708Expenses relating to short-term leases 47Expenses relating to low-value leases 7

2,849

(d) Statement of Cash Flows§Subnote§

Total cash outflow for leases 2,8292,829



Note 14. Leases (continued)

Page 53 of 104





§Note/Subtotal§

Leases at significantly below market value – concessionary / peppercorn leases

Accounting policy

At inception of a contract, Council assesses whether a lease exists – i.e. does the contract convey the right to control the useof an identified asset for a period of time in exchange for consideration?

Accounting policies under AASB 16 – applicable from 1 July 2019

Council has elected not to separate non-lease components from lease components for any class of asset and has accountedfor payments as a single component.

At the lease commencement, Council recognises a right-of-use asset and associated lease liability for the lease term. Thelease term includes extension periods where Council believes it is reasonably certain that the option will be exercised.

The right-of-use asset is measured using the cost model where cost on initial recognition comprises: the lease liability, initialdirect costs, prepaid lease payments, estimated cost of removal and restoration, less any lease incentives. The right-of-useis depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the impairmentof asset accounting policy.

The lease liability is initially recognised at the present value of the remaining lease payments at the commencement of thelease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Council’sincremental borrowing rate for a similar term with similar security is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. Thelease liability is re-measured when there is a lease modification, or change in estimate of the lease term or index upon whichthe lease payments are based (e.g. CPI).

Where the lease liability is re-measured, the right-of-use asset is adjusted to reflect the re-measurement.

Exceptions to lease accountingCouncil has applied the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equalto 12 months) and leases of low-value assets. Council recognises the payments associated with these leases as an expenseon a straight-line basis over the lease term.

Leases at significantly below market value / concessionary leasesCouncil has elected to measure the right of use asset arising from the concessionary leases at cost which is based on theassociated lease liability at initial recognition.

Accounting policy under AASB 117 and associated Accounting Interpretations (2019 only)Refer to Note 5c and Note 15.




Page 54 of 104




§Note/Subtotal§

(ii) Council as a lessor

(e) Operating leases§Subnote§

Council leases out a number of properties and /or plant and equipment to employees and community groups; these leaseshave been classified as operating leases for financial reporting purposes..

The amounts recognised in the Income Statement relating to operating leases where Council is a lessor are shown below:

2020Actual$ '000

(i) Operating lease incomeInvestment propertiesLease income (excluding variable lease payments not dependent on an index or rate) 3,619Lease income relating to variable lease payments not dependent on an index or a rate 149Other lease incomeOther council properties 3,609Leaseback fees - council vehicles 1,639Total income relating to operating leases 9,016

(ii) Operating lease expensesInvestment propertiesDirect operating expenses that generated rental income 1,807Direct operating expenses that did not generate rental income 604Other leased assetsOther 9,041Total expenses relating to operating leases 11,452

(iii) Maturity analysis of contractual lease incomeMaturity analysis of future lease income receivable showing the undiscounted leasepayments to be received after reporting date for operating leases:

< 1 year 4,7311–2 years 3,4712–3 years 2,7523–4 years 1,8724–5 years 1,584> 5 years 12,006Total undiscounted contractual lease income receivable 26,416

When Council is a lessor, the lease is classified as either an operating or finance lease at inception date, based on whethersubstantially all of the risks and rewards incidental to ownership of the asset have been transferred to the lessee. If the risksand rewards have been transferred then the lease is classified as a finance lease, otherwise it is an operating lease.

§Subnote§

Accounting policy

When Council has a sub-lease over an asset and is the intermediate lessor then the head lease and sub-lease are accountedfor separately. The classification of the sub-lease is based on the right-of-use asset which arises from the head lease rather thanthe useful life of the underlying asset. If the lease contains lease and non-lease components then the non-lease componentsare accounted for in accordance with AASB 15 Revenue from Contracts with Customers.

The lease income is recognised on a straight-line basis over the lease term.




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§Note/Subtotal§


§Subnote§

PayablesPrepaid rates 3,334 – – –Goods and services – operating expenditure 41,673 – 29,759 –Accrued expenses:– Salaries and wages 2,616 – 1,438 –Security bonds, deposits and retentions 52,239 – 47,986 –Other 3,823 – 3,751 –Total payables 103,685 – 82,934 –

Income received in advance (2019 only)Payments received in advance – – 7,712 –Total income received in advance – – 7,712 –

TOTAL PAYABLES AND BORROWINGS 103,685 – 90,646 –


(a) Payables and borrowings relating torestricted assets

§Subnote§

Externally restricted assetsDomestic waste management 3,702 – 898 –Payables and borrowings relating to externally restricted assets 3,702 – 898 –

Total payables and borrowings relating to restricted assets 3,702 – 898 –

Total payables and borrowings relating to unrestricted assets 99,983 – 89,748 –

TOTAL PAYABLES AND BORROWINGS 103,685 – 90,646 –

2020 2019Actual Actual$ '000 $ '000

(b) Current payables and borrowings not anticipated to be settled within the next twelve months

§Subnote§

The following liabilities, even though classified as current, are not expected to be settled inthe next 12 months.Payables – security bonds, deposits and retentions 8,615 8,616Total payables and borrowings 8,615 8,616



Note 15. Payables and borrowings

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Note 15. Payables and borrowings

§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(c) Financing arrangements

(i) Unrestricted access was available at balance date to the following lines of credit:Credit cards/purchase cards 86 83Total financing arrangements 86 83

Drawn facilities as at balance date:– Credit cards/purchase cards 86 83Total drawn financing arrangements 86 83

Council measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities aremeasured at amortised cost using the effective interest rate method.

§Subnote§

Accounting policy for payables and borrowings

The financial liabilities of the Council comprise trade payables, bank and other loans and finance lease liabilities.

PayablesThese amounts represent liabilities for goods and services provided to the council prior to the end of financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured atamortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised inthe Income Statement over the period of the borrowings using the effective-interest method. Fees paid on the establishmentof loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facilitywill be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent that there is no evidence thatit is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity servicesand amortised over the period of the facility to which it relates.

Borrowings

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged,cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished ortransferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, isrecognised in other income or finance cost.

Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the liability forat least 12 months after the reporting date.

Finance leases (2019 only)Leases of property, plant and equipment where Council, as lessee, has substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased assets or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Income Statement over the lease period so as to produce a constant periodic rate ofinterest on the remaining balance of the liability for each period.



Note 15. Payables and borrowings (continued)

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Note 15. Payables and borrowings (continued)


§Note/Subtotal§


Provisions

§Subnote§

Employee benefitsAnnual leave 20,925 – 19,807 –Sick leave 4,245 – 4,843 –Long service leave 30,041 2,344 31,412 2,451Sub-total – aggregate employee benefits 55,211 2,344 56,062 2,451

Other provisionsSelf insurance – workers compensation 3,470 10,100 2,880 8,710Other 278 – 194 –Sub-total – other provisions 3,748 10,100 3,074 8,710

TOTAL PROVISIONS 58,959 12,444 59,136 11,161

(a) Provisions relating to restricted assets§Subnote§

Externally restricted assetsDomestic waste management 2,145 100 1,821 –Provisions relating to externally restricted assets 2,145 100 1,821 –

Total provisions relating to restricted assets 2,145 100 1,821 –

Total provisions relating to unrestricted assets 56,814 12,344 57,315 11,161

TOTAL PROVISIONS 58,959 12,444 59,136 11,161

2020 2019Actual Actual$ '000 $ '000

(b) Current provisions not anticipated to be settled within the next twelve months

§Subnote§

The following provisions, even though classified as current, are not expected to be settled in the next 12 months.Provisions – employees benefits 41,957 43,374

41,957 43,374



Note 16. Provisions

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Note 16. Provisions

§Note/Subtotal§

(c) Description of and movements in provisions

ELE provisions

Annual leave Sick leaveLong service

leave Total

$ '000 $ '000 $ '000 $ '000

2020At beginning of year 19,807 4,843 33,863 58,513Movement 1,118 (598) (1,478) (958)Total ELE provisions at end of year 20,925 4,245 32,385 57,555

2019At beginning of year 18,518 4,577 30,052 53,147Movement 1,289 266 3,811 5,366Total ELE provisions at end of year 19,807 4,843 33,863 58,513

§Total§

Other provisions

OtherSelf

insurance Total

Actual Actual$ '000 $ '000 $ '000

2020At beginning of year 194 11,590 11,784

§Total§

Movement 84 1,980 2,064Total other provisions at end of year 278 13,570 13,848

2019At beginning of year 68 9,910 9,978Movement 126 1,680 1,806Total other provisions at end of year 194 11,590 11,784

Asset remediation

§Subnote§

Nature and purpose of non-employee benefit provisions

Council has a legal/public obligation to make, restore, rehabilitate and reinstate the council tip and quarry.

Self-insuranceTo recognise liabilities for outstanding claims (uninsured losses) arising from Council’s decision to undertake self-insurancefor certain risks faced.

Provisions are recognised when Council has a present legal or constructive obligation as a result of past events, it is probablethat an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.

Accounting policy for provisions

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined byconsidering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect toany one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the presentobligation at the reporting date. The discount rate used to determine the present value reflects current market assessmentsof the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time isrecognised as interest expense.




Note 16. Provisions (continued)

Page 59 of 104




Employee benefits

Short-term obligations

Liabilities for wages and salaries (including non-monetary benefits, annual leave and accumulating sick leave expected to bewholly settled within 12 months after the end of the period in which the employees render the related service) are recognisedin respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paidwhen the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision foremployee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations

The liability for long-service leave and annual leave that is not expected to be wholly settled within 12 months after the end ofthe period in which the employees render the related service is recognised in the provision for employee benefits and measuredas the present value of expected future payments to be made in respect of services provided by employees up to the end ofthe reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels,experience of employee departures, and periods of service. Expected future payments are discounted using market yields atthe end of the reporting period on national government bonds with terms to maturity and currency that match, as closely aspossible, the estimated future cash outflows.

On-costs

The employee benefit provisions include the aggregate on-cost liabilities that will arise when payment of current employeebenefits is made in future periods.

These amounts include superannuation, payroll tax and workers compensation expenses which will be payable upon the futurepayment of certain leave liabilities which employees are entitled to at the reporting period.

The obligations are presented as current liabilities in the Statement of Financial Position if the Council does not have anunconditional right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlementis expected to occur.

Restoration

Provisions for close-down and restoration, and environmental clean-up costs – tips and quarries

Close-down and restoration costs include the dismantling and demolition of infrastructure, and the removal of residual materialsand remediation of disturbed areas. Estimated close-down and restoration costs are provided for in the accounting periodwhen the obligation arising from the related disturbance occurs, whether this occurs during the development or during theoperation phase, based on the net present value of estimated future costs.

Provisions for close-down and restoration costs do not include any additional obligations which are expected to arise fromfuture disturbance. The costs are estimated on the basis of a closure plan. The cost estimates are calculated annually duringthe life of the operation to reflect known developments, e.g. updated cost estimates and revisions to the estimated lives ofoperations, and are subject to formal review at regular intervals.

RehabilitationWhere rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, provisionis made for the estimated outstanding continuous rehabilitation work at each reporting date, and the cost is charged to theIncome Statement.

Provision is made for the estimated present value of the costs of environmental clean-up obligations outstanding at the reportingdate. These costs are charged to the Income Statement. Movements in the environmental clean-up provisions are presentedas an operating cost, except for the unwinding of the discount which is shown as a borrowing cost.

Remediation procedures generally commence soon after the time the damage, remediation process, and estimatedremediation costs become known, but may continue for many years depending on the nature of the disturbance and theremediation techniques.

As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to manyfactors, including changes to the relevant legal requirements, the emergence of new restoration techniques, or experience atother locations. The expected timing of expenditure can also change, for example in response to changes in quarry reserves





Page 60 of 104




or production rates. As a result, there could be significant adjustments to the provision for close down and restoration andenvironmental clean-up, which would affect future financial results.

Other movements in the provisions for close-down and restoration costs, including those resulting from new disturbance,updated cost estimates, changes to the estimated lives of operations, and revisions to discount rates, are capitalised withinproperty, plant and equipment. These costs are then depreciated over the lives of the assets to which they relate.

Close-down and restoration costs are a normal consequence of tip and quarry operations, and the majority of close-down andrestoration expenditure is incurred at the end of the life of the operations. Although the ultimate cost to be incurred is uncertain,Council estimates the respective costs based on feasibility and engineering studies using current restoration standards andtechniques.

Self-insuranceCouncil has decided to self-insure for various risks, including public liability and professional indemnity. A provision for self-insurance has been made to recognise outstanding claims. Council also maintains cash and investments to meet expected future claims; refer to Note 7(c).




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§Note/Subtotal§

(a) Nature and purpose of reserves

§Subnote§

Infrastructure, property, plant and equipment revaluation reserveThe infrastructure, property, plant and equipment revaluation reserve is used to record increments / decrements of non-current asset values due to their revaluation.

Fair value through other comprehensive income reserve (FVOCI)Changes in the fair value of financial assets are taken through the fair value through other comprehensive income revaluation reserve. The accumulated changes in fair value are transferred to profit or loss when the financial asset is derecognised or impaired.

(b) Correction of errors relating to a previous reporting period§Subnote§

Infrastructure assets

§Total§

Nature of prior-period error

At the last stormwater drainage revaluation in 2015, pits and pipes were added to basin components in error. They wereduplicated with assets in the pits and pipes components. This error amounted to a $15,551,025 overstatement. This error hasbeen corrected against the revaluation reserve.

During the revaluation of infrastructure assets it has been identified that infrastructure assets dedicated to council in previousfinancial years were not capitalised. These errors have been adjusted against retained earnings to correct the error:Stormwater drainage $52,172,759Roads $18,270,739Footpaths $17,735,899Other road assets $10,103,730

The errors identified above have been corrected by restating the balances at the beginning of the earliest period presented (1July 2018) and taking the adjustment through to accumulated surplus at that date.

Comparatives have been changed to reflect the correction of errors. The impact on each line item is shown in the tables below.

Original Balance

1 July, 2018

Impact Increase/

(decrease)

Restated Balance

1 July, 2018$ '000 $ '000 $ '000

Infrastructure, property, plant and equipment 3,978,754 83,324 4,062,078Total assets 4,726,219 83,324 4,809,543

§Total§

Total liabilities 159,926 – 159,926

Accumulated surplus 3,525,685 98,875 3,624,560Revaluation reserves 1,040,608 (15,551) 1,025,057Total equity 4,566,293 83,324 4,649,617



Note 17. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

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Note 17. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors


§Note/Subtotal§

Adjustments to the comparative figures for the year ended 30 June 2019§Total§

Statement of Financial Position

Original Balance

30 June, 2019

Impact Increase/

(decrease)

Restated Balance

30 June, 2019$ '000 $ '000 $ '000

Infrastructure, property, plant and equipment 4,202,882 82,732 4,285,614Total assets 4,941,074 82,732 5,023,806

Total liabilities 160,943 – 160,943

Accumulated surplus 3,768,056 98,283 3,866,339Revaluation reserves 1,012,075 (15,551) 996,524Total equity 4,780,131 82,732 4,862,863

§Total§

Income Statement

Original Balance

30 June, 2019

Impact Increase/

(decrease)

Restated Balance

30 June, 2019$ '000 $ '000 $ '000

Total income from continuing operations 595,432 – 595,432

Depreciation and amortisation 70,301 1,973 72,274Total expenses from continuing operations 353,061 1,973 355,034

Net operating result for the year 242,371 (1,973) 240,398

§Total§

Statement of Comprehensive Income

Original Balance

30 June, 2019

Impact Increase/

(decrease)

Restated Balance

30 June, 2019$ '000 $ '000 $ '000

Net operating result for the year 242,371 (1,973) 240,398

Other comprehensive income (28,533) – –

Total comprehensive income for the year 213,838 (1,973) 240,398



Note 17. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors (continued)

Page 63 of 104





§Note/Subtotal§

(c) Changes in accounting policies due to adoption of new accounting standards (not-retrospective)

During the year ended 30 June 2020, the Council has adopted AASB 15 Revenue from Contracts with Customers, AASB1058 Income of Not-for-profit Entities and AASB 16 Leases using the modified retrospective (cumulative catch-up) methodand therefore the comparative information for the year ended 30 June 2019 has not been restated and continues to complywith AASB 111 Construction Contracts, AASB 117 Leases, AASB 118 Revenue, AASB 1004 Contributions and associatedAccounting Interpretations.

§Total§

All adjustments on adoption of AASB 15 and AASB 1058 have been taken to retained earnings at 1 July 2019.

The impacts of adopting these standards and associated transition disclosures are provided below: §Subnote§

(ii) AASB 15 and AASB 1058

The following approach has been applied on transition to AASB 15 and AASB 1058:§Total§

• Council has not adopted the completed contract expedient and therefore has not excluded revenue which was fullyrecognised in previous years in accordance with the former accounting standards and pronouncements

• Council has retrospectively restated contracts for modifications that occurred before 1 July 2019 unless such contractmodification were minor.

Prior to adopting AASB 15 Council would recognise direct costs associated with fulfilling customer contracts as expenses whenincurred, as they did not qualify for recognition as assets under any other accounting standards. Under AASB 15, as thesecosts relate directly to the contracts, generate resources used in satisfying the contracts, and are expected to be recovered,they are capitalised as ‘costs to fulfil a contract’ assets and released through profit and loss on the same basis as the revenueis recognised.

Costs incurred in fulfilling customer contracts

In relation to contract modifications, AASB 15 requires customer approval, which is a more prudent criteria than the probabilityrequirement in the previous standards and has resulted in deferral of revenue where unapproved works have been performed.

Revenue recognition from contract modifications

Transfer of control to a customer – over time or at a point in timeAASB 15 has specific criteria regarding whether control is transferred over time or at a point in time. The entity has reviewedits contracts and concluded that the criteria for recognition over time is not met in some circumstances. In such cases, revenue and related production costs will be recognised at the delivery of each separate performance obligation instead of over the contract using a single margin.

LicencesCouncil has reviewed the licences it grants and considers that all licences are either short-term or low value and elects to recognise all revenue from licences up-front rather than spreading them over the life of the licence.

Prepaid ratesUnder AASB 1004, rates were recorded as revenue at the earliest of receipt of the funds from the ratepayer and the beginning of the rating period. Under AASB 1058, prepaid rates are recognised as a financial liability until the beginning of the rating period.

Grants – operatingUnder AASB 1004, most grant income was recognised as revenue on receipt. Under AASB 15, where an agreement is enforceable and contains sufficiently specific performance obligations, the revenue is either recognised over time as the work is performed, or recognised at the point in time that the control of the services passes to the customer.

Grants – capitalUnder AASB 1004, most grant monies were recorded as revenue on receipt. Under AASB 1058, where Council has received assets (including cash) to acquire or construct a non-financial asset, the asset is to be controlled by Council and the contract is enforceable, then the asset is recognised as a contract liability on receipt and recorded as revenue as the performance obligation to acquire or construct the asset is completed.




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Changes in presentationIn addition to the above changes in accounting policies, the Council has also amended the presentation of certain items toalign them with the requirements of AASB 15 and AASB 1058:

• Additional line items of contract assets, contract cost assets and contract liabilities have been created.• Reclassification of income received in advance to contract liabilities• Reclassification of prepaid rates payments from income received in advance to payables

Balance at1 July 2019

$ '000 Actual

Opening contract balances at 1 July 2019

§Total§

Contract liabilities– Under AASB 15 9,555– Under AASB 1058 22,710Total Contract liabilities 32,265




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§Note/Subtotal§

Comparison of financial statement line items under AASB 15 compared to previous standards for the current year

§Total§

The following tables show the impact of adopting AASB 15 and AASB 1058 on the Council’s financial statements for the year ended 30 June 2020.


Carrying amount per

Statement of Financial

Position under AASB 15 and

AASB 1058Reclassific-

ationRemeasur-

ement

Carrying amount under

previous revenue

standards Notes$ '000 Actual Actual Actual Actual Actual

Current assetsCash and cash equivalents 187,173 – – 187,173 Investments 345,000 – – 345,000 Receivables 20,773 – – 20,773 Inventories 12,306 – – 12,306 Other 1,555 – – 1,555 Total current assets 566,807 – – 566,807

Current liabilitiesPayables 103,685 (3,334) (76) 100,275 Income received in advance – 13,673 – 13,673 Contract liabilities 16,564 (10,339) (6,225) – Lease liabilities 905 – – 905 Provisions 58,959 – – 58,959 Total current liabilities 180,113 – (6,301) 173,812

Non-current assetsInvestments 87,000 – – 87,000 Receivables 2,665 – – 2,665 Inventories 45,102 – – 45,102 Infrastructure,property,plant and equipment 4,815,528 – – 4,815,528 Investment property 181,216 – – 181,216 Intangible assets 1,234 – – 1,234 Right of use assets 885 – – 885 Investments accounted for using equity method 9,312 – – 9,312

Total non-current assets 5,142,942 – – 5,142,942

Non-current liabilitiesContract liabilities 16,113 – (16,113) – Provisions 12,444 – – 12,444 Total Non-current liabilities 28,557 – (16,113) 12,444

Net assets 5,501,079 – 22,414 5,523,493

EquityAccumulated surplus 4,202,370 – 28,294 4,230,664 Revaluation reserves 1,298,709 – – 1,298,709 Total equity 5,501,079 – 28,294 5,529,373




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Re-lassification - Amounts previously recognised under income in advance has been reclassified in accordance toAASB15/1058 to contract liabilities with the exception of prepaid-rates which is currently classified as payables.

Re-measurement - Amounts that was previously recognised in accordance with AASB1004 has been re-measured at thebeginning of the 2019/20 financial year the difference of amount not yet recognised under the new accounting standard hasbeen recorded under contract liabilities.

Income Statement§Total§

Income Statement and

comprehen-sive income

under AASB 15and AASB

1058Reclassific-

ationRemeasur-

ement

Income Statement and

comprehen-sive income

under previousrevenue

standards Notes$ '000 Actual Actual Actual Actual Actual

Income from continuing operationsRates and annual charges 239,586 – – 239,586 User charges and fees 37,192 – 493 37,685 Other revenues 11,181 – – 11,181 Grants and contributions provided for operating purposes 36,214 – (1,260) 34,954

Grants and contributions provided for capital purposes 258,177 – (5,113) 253,064

Interest and investment income 11,214 – – 11,214 Net gains from the disposal of assets 20,859 – – 20,859 Fair value increment on investment properties 100,504 – – 100,504

Rental income 9,016 – – 9,016 Net share of interests in joint ventures and associates using the equity method 664 – – 664

Total Income from continuing operations 724,607 – (5,880) 718,727

Expenses from continuing operationsEmployee benefits and on-costs 155,977 – – 155,977 Borrowing costs 27 – – 27 Materials and contracts 89,161 – – 89,161 Depreciation and amortisation 73,433 – – 73,433 Other expenses 41,684 – – 41,684 Total Expenses from continuing operations 360,282 – – 360,282

Total Operating result from continuing operations 364,325 – (5,880) 358,445

Net operating result for the year 364,325 – (5,880) 358,445

Total comprehensive income 666,510 – – 666,510

Re-measurement - Amounts that was previously recognised in accordance with AASB1004 has been re-measured at the beginning of the 2019/20 financial year the difference of amount not yet recognised under the new accounting standard has been recorded under contract liabilities.




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§Note/Subtotal§

Adjustments to the current year figures for the year ended 30 June 2020§Total§


$ '000

Original Balance

1 July, 2019

Impact Increase/

(decrease)

Restated Balance

1 July, 2019

Contract assets – – –Total assets 4,941,074 – 4,941,074

Contract liabilities 4,047 28,218 32,265Payables - Other 3,751 76 3,827Total liabilities 160,943 28,294 189,237

Accumulated surplus 3,768,056 (28,294) 3,739,762Total equity 4,780,131 (28,294) 4,751,837




Page 68 of 104





§Note/Subtotal§

(iii) AASB 16 Leases

Under AASB 117, Council assessed whether leases were operating or finance leases, based on its assessment of whether thesignificant risks and rewards of ownership had been transferred to Council or remained with the lessor. Under AASB 16, thereis no differentiation between finance and operating leases for the lessee and therefore all leases which meet the definition ofa lease are recognised on the statement of financial position (except for short-term leases and leases of low-value assets).

§Total§

Council as a lessee

Council has used the exception to lease accounting for short-term leases and leases of low-value assets, and the leaseexpense relating to these leases is recognised in the Income Statement on a straight- line basis.

AASB 16 includes a number of practical expedients which can be used on transition. Council has used the following expedients:Practical expedients used on transition

• Contracts which had previously been assessed as not containing leases under AASB 117 were not re-assessed ontransition to AASB 16.

• Lease liabilities have been discounted using the Council’s incremental borrowing rate at 1 July 2019.• Right-of-use assets at 1 July 2019 have been measured at an amount equal to the lease liability adjustment by the any

prepaid or accrued lease payments.• A single discount rate was applied to all leases with similar characteristics.• The right-of-use asset was adjusted by the existing onerous lease provision (where relevant) at 30 June 2019 rather

than perform impairment testing of the right-of-use asset.• Excluded leases with an expiry date prior to 30 June 2020 from the Statement of Financial Position, and lease expenses

for these leases have been recorded on a straight-line basis over the remaining term.• Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

Council has recognised right-of-use assets and lease liabilities of $1,179,173 at 1 July 2019 for leases previously classifiedas operating leases, or leases that are significantly below market value which were previously off balance sheet.

Financial statement impact of adoption of AASB 16

The weighted average lessee’s incremental borrowing rate applied to lease liabilities at 1 July 2019 was 2.35%.

Balance at1 July 2019

$ '000 Actual

Operating lease commitments at 30 June 2019 per Council financial statements 485

Reconciliation of lease liabilities recognised on adoption of AASB 16 Leases

Operating lease commitments discounted using theincremental borrowing rate at 1 July 2019 469

§Total§

Add:Contracts not accounted for as operating lease commitments last year 784Less:Short-term leases included in commitments note (47)Leases for low-value assets included in commitments note (27)Lease liabilities recognised at 1 July 2019 1,179

Council as a lessorFor the arrangements where Council is a lessor, there are no significant accounting policy changes on adoption of AASB 16 except for sub-leases, which have now been classified in relation to the right-of-use asset under the head lease rather than the underlying asset.




Page 69 of 104




§Note/Subtotal§

Adjustments to the current year figures for the year ended 30 June 2020§Total§


$ '000

Original Balance

1 July, 2019

Impact Increase/

(decrease)

Restated Balance

1 July, 2019

Rights-of-use assets – 1,179 1,179Total assets – 1,179 1,179

Payables – accrued interest on leases (30/6/2019) – – –Leases – 1,179 1,179Total liabilities – 1,179 1,179

Accumulated surplus – – –Total equity – – –




Page 70 of 104




§Note/Subtotal§


Notes $ '000 $ '000

(a) Reconciliation of cash and cash equivalents

§Subnote§

Total cash and cash equivalents per Statement of Financial Position 7(a) 187,173 182,945Balance as per the Statement of Cash Flows 187,173 182,945

(b) Reconciliation of net operating result to cash provided from operating activities

§Subnote§

Net operating result from Income Statement 364,325 240,398Adjust for non-cash items:Depreciation and amortisation 73,433 72,274Net losses/(gains) on disposal of assets (20,859) 1,448Non-cash capital grants and contributions (80,201) (149,545)Adoption of AASB 15/1058 (28,294) –Losses/(gains) recognised on fair value re-measurements through the P&L:– Investment property (100,504) (3,078)Share of net (profits)/losses of associates/joint ventures using the equity method (664) (928)

+/– Movement in operating assets and liabilities and other cash items:Decrease/(increase) in receivables 14,284 (7,124)Increase/(decrease) in provision for impairment of receivables 72 104Decrease/(increase) in inventories 1,088 252Decrease/(increase) in other current assets 584 (211)Increase/(decrease) in payables 11,914 (12,951)Increase/(decrease) in other accrued expenses payable 1,178 180Increase/(decrease) in other liabilities (53) 6,616Increase/(decrease) in contract liabilities 32,677 –Increase/(decrease) in provision for employee benefits (958) 5,366Increase/(decrease) in other provisions 2,064 1,806Net cash provided from/(used in) operating activities from the Statement of Cash Flows 270,086 154,607

(c) Non-cash investing and financing activities§Subnote§

Developer contributions ‘in kind’ 24,382 61,299Other dedications 11,357 15,606Other infrastructure assets 44,462 72,640Total non-cash investing and financing activities 80,201 149,545



Note 18. Statement of cash flow information

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Note 18. Statement of cash flow information


§Note/Subtotal§

Council’s share of net income Council’s share of net assets2020 2019 2020 2019

$ '000 $ '000 $ '000 $ '000

§Subnote§

Joint ventures 664 928 9,312 10,501Total 664 928 9,312 10,501

(a) Controlled entities (subsidiaries) – being entities and operations controlled by Council§Subnote§

Council’s consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with AASB 10 and the accounting policy described below.

Council’s consolidated financial statements also include controlled entities with ownership interest of 50% or less.

Principal activityActual

Name of Operation/Entity

Blacktown Venue Management Ltd

The company's principal continuing activities during the year consisted of operational management and development of Key venues Blacktown International Sportspark - Sydney, located on Eastern Road, Doonside, NSW . From 1 July 2015 activities includes Blacktown aquatic centre, Blacktown leisure centre Stanhope, Emerton leisure centre, Mount Druitt and Riverstone swimming centres.

Blacktown International Sportspark – SydneyCnr Eastern Road & Phillip Parkway Rooty Hill NSW 2766

§Total§

Ownership OwnershipVoting rights

Voting rights

2020 2019 2020 2019Interests in Subsidiary % % % %

Council’s interest in Subsidiary 100% 100% 100% 100%

§Total§

In 2001/02, Council assumed responsibility for Blacktown International Sportspark, Sydney. Council established BlacktownVenue Management Ltd (ACN 098 490 978), as a separate legal entity responsible for the operational management of thevenue. Blacktown Venue Management Ltd is a public company limited by guarantee and is fully owned by Blacktown CityCouncil. The company was issued a certificate of registration from the Australian Securities and Investments Commissionon 19 October, 2001, and commenced operations from January 2002, following the appointment of a Chief ExecutiveOfficer. Funding for Blacktown Venue Management Ltd is by way of revenue generated from operations, and a subsidy fromCouncil. For the purpose of financial reporting in accordance with the Corporations legislation, Council considers BlacktownVenue Management Ltd to be a non-reporting entity. A separate set of financial statements for Blacktown VenueManagement Ltd is prepared and audited annually on this basis. For the purposes of Council’s Consolidated FinancialStatements, all transactions associated with Blacktown Venue Management Ltd have been consolidated into Council’saccounts.

Blacktown Venue Management Ltd

The nature and extent of significant restrictions relating to the SubsidiaryThere are no significant restrictions outside of meeting the requirements of the Local Government Act.

The nature of risks associated with Council’s interests in the SubsidiaryBlacktown Venue Management Ltd is a company limited by guarantee, incorporated and domiciled in Australia. Blacktown City Council is fully responsible now and for the foreseeable future for all debts of Blacktown Venue Management Ltd shouldBlacktown Venue Management Ltd be unable to meet these obligations. Blacktown City Council provides a contribution to enable Blacktown Venue Management Ltd to operate which represents the variance between operating revenue generated by Blacktown Venue Management Ltd and expenses less amounts released from reserves. The contribution made by



Note 19. Interests in other entities

Page 72 of 104



Note 19. Interests in other entities


Blacktown City Council for the 19/20 financial year was $10,438,881.

Other disclosuresCouncil holds 100% interest in Blacktown Venue Management Ltd.

Reporting dates of SubsidiaryBlacktown Venue Management Ltd prepares Special Purpose Financial Statements with a year end reporting date of 30 June Statements are prepared to ensure compliance with ASIC.

§Total§

Summarised financial information for the Subsidiary


$ '000 $ '000

Summarised statement of comprehensive incomeRevenue 20,465 20,586Expenses (19,892) (19,722)Profit for the period 573 864

Total comprehensive income (1) 573 864

Summarised statement of financial positionCurrent assets 3,083 2,729Total assets 3,083 2,729

Current liabilities 1,239 1,103Total liabilities 1,239 1,103

Net assets (2) 1,844 1,626

Summarised statement of cash flowsCash flows from operating activities 356 1,210Net increase (decrease) in cash and cash equivalents 356 1,210

Subsidiaries are all entities (including structured entities) over which the Council has control. Control is established when theCouncil is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect thosereturns through its power to direct the relevant activities of the entity.

§Total§

Accounting policy for subsidiaries

These consolidated financial statements include the financial position and performance of controlled entities from the date onwhich control is obtained until the date that control is lost. Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entities in the consolidated entity have been eliminated in full for the purpose of thesefinancial statements. Appropriate adjustments have been made to a controlled entity’s financial position, performance andcash flows where the accounting policies used by that entity were different from those adopted by the consolidated entity. Allcontrolled entities have a June financial year end.



Note 19. Interests in other entities (continued)

Page 73 of 104





§Note/Subtotal§

(b) Joint arrangements

(i) Joint venturesThe following information is provided for joint ventures that are individually material to the Council. Included are the total amounts as per the joint venture financial statements, adjusted for fair-value adjustments at acquisition date and differences in accounting policies, rather than the Council’s share.

Blacktown City Council’s interests in the Local Government Insurance Pools “Civic Risk West" and "Civic Risk Mutual” havebeen recognised as a Joint Venture in the financial statements using the Equity Accounting method.

Civic Risk West and Civic Risk Mutual

The proportionate interests in the assets, liabilities and expenses of Civic Risk West and Civic Risk Mutual have beenincorporated in the financial statements under the appropriate headings.

(a) Net carrying amounts – Council’s share§Total§

Nature of relationship

Measurement method 2020 2019

$ '000 $ '000

CivicRisk West & CivicRisk Mutual Joint Venture Equity 9,312 10,501Total carrying amounts – material joint ventures 9,312 10,501

(b) Details§Total§

Principal activityPlace of business

CivicRisk West & CivicRisk Mutual

Self Insurance Penrith NSW

(c) Relevant interests and fair values§Total§

Interest inoutputs

Interest inownership

Proportion ofvoting power

2020 2019 2020 2019 2020 2019% % % % % %

CivicRisk West & CivicRisk Mutual 18.9% 19.0% 18.9% 19.0% 18.9% 19.0%




Page 74 of 104





§Note/Subtotal§

(d) Summarised financial information for joint ventures§Total§

CivicRisk West & CivicRisk Mutual

2020 2019Actual Actual$ '000 $ '000

Statement of financial positionCurrent assetsOther current assets 42,350 39,408Non-current assets 38,151 41,890Current liabilitiesOther current liabilities 19,590 12,570Non-current liabilitiesNon-current financial liabilities (excluding trade and other payables and provisions) 11,635 14,395Net assets 49,276 54,333

Reconciliation of the carrying amountOpening net assets (1 July) 54,333 50,230Equity Distribution (8,400) –Profit/(loss) for the period 3,343 4,103Closing net assets 49,276 54,333

Council’s share of net assets (%) 18.9% 19.3%Council’s share of net assets ($) 9,312 10,501

Statement of comprehensive incomeIncome 22,648 21,734Other expenses (19,257) (17,631)Profit/(loss) from continuing operations 3,391 4,103

Profit/(loss) for the period 3,391 4,103

Other comprehensive income (48) –Total comprehensive income 3,343 4,103

Share of income – Council (%) 19.9% 22.6%Profit/(loss) – Council ($) 673 928Total comprehensive income – Council ($) 664 928

Refund of surplus funds 1,853 –

(i) County Councils§Total§

Council is a member of Hawkesbury County Council.

County Councils as joint ventures

Council is of the opinion that it does not control the above county council/s and accordingly these entities have not beenconsolidated or otherwise included within these financial statements.




Page 75 of 104




§Note/Subtotal§

The council has determined that it has only joint ventures

§Total§

Accounting policy for joint arrangements

Joint ventures:

Interests in joint ventures are accounted for using the equity method in accordance with AASB128 Investments in Associatesand Joint Ventures.

Under this method, the investment is initially recognised as a cost and the carrying amount is increased or decreased torecognise the Council’s share of the profit or loss and other comprehensive income of the joint venture after the date ofacquisition.

If the Council’s share of losses of a joint venture equals or exceeds its interest in the joint venture, the Council discontinuesrecognising its share of further losses.

The Council’s share in the joint venture’s gains or losses arising from transactions between itself and its joint venture areeliminated.

Adjustments are made to the joint venture’s accounting policies where they are different from those of the Council for thepurposes of the consolidated financial statements.




Page 76 of 104




§Note/Subtotal§

2020 2019Actual Actual$ '000 $ '000

(a) Capital commitments (exclusive of GST)

§Subnote§

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:

Property, plant and equipmentBuildings 39,240 4,093Investment property 170 557Plant and equipment 8,174 1,671Roads, bridges and drainage 7,050 3,204Office equipment 87 492Land development 1,243 614Land Improvements 2,260 1,878Land acquisitions 87,611 56,147Library books 15 13Furniture and fittings 63 –Information Technology – 130Total commitments 145,913 68,799

These expenditures are payable as follows:Within the next year 145,913 68,799Total payable 145,913 68,799

Sources for funding of capital commitments:Unrestricted general funds 2,661 1,611Externally restricted reserves 135,340 57,603Internally restricted reserves 7,912 9,585Total sources of funding 145,913 68,799

(b) Non-cancellable operating lease commitments (2019 only)§Subnote§

a. Commitments under non-cancellable operating leases at the reporting date, but not recognised as liabilities are payable:

Within the next year – 216Later than one year and not later than 5 years – 269Total non-cancellable operating lease commitments – 485

b. Non-cancellable operating leases include the following assets:Photocopiers, gym equipment and electric cars.Contingent rentals maybe payable depending on the condition of items or usage during the lease term.

Refer to Note 15 for information relating to leases for 2020.



Note 20. Commitments

Page 77 of 104



Note 20. Commitments


The following assets and liabilities do not qualify for recognition in the Statement of Financial Position, but their knowledge and disclosure is considered relevant to the users of Council’s financial report.

LIABILITIES NOT RECOGNISED

1. Guarantees

Council is party to an Industry Defined Benefit Plan under the Local Government Superannuation Scheme, named The LocalGovernment Superannuation Scheme – Pool B (the Scheme) which is a defined benefit plan that has been deemed to be a‘multi-employer fund’ for purposes of AASB119 Employee Benefits for the following reasons:

(i) Defined benefit superannuation contribution plans

– Assets are not segregated within the sub-group according to the employees of each sponsoring employer.

– The contribution rates have been the same for all sponsoring employers. That is, contribution rates have not varied for eachsponsoring employer according to the experience relating to the employees of that sponsoring employer.

– Benefits for employees of all sponsoring employers are determined according to the same formulae and without regard tothe sponsoring employer.

– The same actuarial assumptions are currently used in respect of the employees of each sponsoring employer.

Given the factors above, each sponsoring employer is exposed to the actuarial risks associated with current and formeremployees of other sponsoring employers, and hence shares in the associated gains and losses (to the extent that they arenot borne by members).

Description of the funding arrangements.

Pooled employers are required to pay standard employer contributions and additional lump sum contributions to the fund.

The future service employer contributions were determined using the new entrant rate method under which a contributionrate sufficient to fund the total benefits over the working life-time of a typical new entrant is calculated. The current futureservice employer contribution rates are:

Division B 1.9 times employee contributions for non-180 Point Members, Nil for 180 PointMembers*

Division C 2.5% salariesDivision D 1.64 times employee contributions* For 180 Point Members, Employers are required to contribute 7% of salaries to these member's accumulation accounts,

which are paid in addition to members defined benefits.

The past service contribution for each Pooled Employer is a share of the total past service contributions of $40.0 million for1 July 2019 to 30 June 2021, apportioned according to each employer's share of the accrued liabilities as at 30 June 2019.These past service contributions are used to maintain the adequacy of the funding position for the accrued liabilities.

The adequacy of contributions is assessed at each triennial actuarial investigation and monitored annually between triennials.

Description of the extent to which Council can be liable to the plan for other Council’s obligations under the terms and conditionsof the multi-employer plan

As stated above, each sponsoring employer (Council) is exposed to the actuarial risks associated with current and formeremployees of other sponsoring employers and hence shares in the associated gains and losses.

However, there is no relief under the Fund's trust deed for employers to walk away from their defined benefit obligations.Under limited circumstances, an employer may withdraw from the plan when there are no active members, on full paymentof outstanding additional contributions. There is no provision for allocation of any surplus which may be present at the dateof withdrawal of the Council.

There are no specific provisions under the Fund's trust deed dealing with deficits or surplus on wind-up.

There is no provision for allocation of any surplus which may be present at the date of withdrawal of an employer.




Note 21. Contingencies

Page 78 of 104



Note 21. Contingencies

The amount of employer contributions to the defined benefit section of the Fund and recognised as an expense for the yearending 30 June 2020 was $2,293,546.39. The last formal valuation of the Fund was undertaken by the Fund Actuary, RichardBoyfield FIAA as at 30 June 2019.

The estimated employer reserves financial position for the Pooled Employers at 30 June 2020 is:

Employer reserves only * $millions Asset CoverageAssets 1,695.2Past Service Liabilities 1,773.2 95.6%Vested Benefits 1,757.5 96.5%* excluding member accounts and reserves in both assets and liabilities.

The key economic long term assumptions used to calculate the present value of accrued benefits are:

Investmentreturn 5.75% per annum

Salary inflation 3.5% per annumIncrease in CPI 2.5% per annum

The contribution requirements may vary from the current rates if the overall sub-group experience is not in line with the actuarialassumptions in determining the funding program; however, any adjustment to the funding program would be the same for allsponsoring employers in the Pooled Employers group.

Council has provided no other guarantees other than those listed above.

(ii) Other guarantees

2. Other liabilities

The Council is involved from time to time in various claims incidental to the ordinary course of business including claims fordamages relating to its services.

(i) Third party claims

Council believes that it is appropriately covered for all claims through its insurance coverage and does not expect any materialliabilities to eventuate.

Council has classified a number of privately owned land parcels as local open space or bushland.

(ii) Potential land acquisitions due to planning restrictions imposed by Council

As a result, where notified in writing by the various owners, Council will be required to purchase these land parcels.

At reporting date, reliable estimates as to the value of any potential liability (and subsequent land asset) from such potentialacquisitions has not been possible.

Council levies Section 7.11 contributions upon various development across the Council area through the required ContributionsPlans.

(iii) Contribution Plans

As part of these Plans, Council has received funds for which it will be required to expend the monies in accordance withthose Plans.

As well, these Plans indicate proposed future expenditure to be undertaken by Council, which will be funded by makinglevies and receipting funds in future years or where a shortfall exists by the use of Council's General Funds. The NSW StateGovernment's Local Infrastructure Growth Scheme (LIGS) has been subsidising the gap over a number of years between themaximum contribution of $30,000 to $45,000 per lot that councils can charge developers and what is actually costs to deliverinfrastructure under a contributions plan, for Plans assessed by IPART. The subsidy ended on 30 June 2020 and the developerwill now pay the full contribution i.e. no further subsidy. Any eventual shortfall in the payment from LIGS or from developers will




Note 21. Contingencies (continued)

Page 79 of 104




also need to be considered for funding from Council's General Funds. These future expenses do not yet qualify as liabilitiesas of the Reporting Date, but represent Councils intention to spend funds in the manner and timing set out in those Plans

Since 1 September 1991, Council has been self insured for workers compensation. A condition of being approved to hold aself insurance licence is that Council must either lodge a security deposit with the State Insurance Regulatory Authority orprovide a bank guarantee to secure total outstanding claims liabilities.

(iv) Workers Compensation Insurance – Bank Guarantee

The State Insurance Regulatory Authority has determined Council's bank guarantee to be $12.61 Million for the 2020/21financial year upon reviewing the report from Council's actuary.

The bank guarantee for the 2019/20 financial year was $11.28 million.

Council has supported this bank guarantee with an internally restricted investment with a value of $5.27 Million as at 30 June2020.

Council may in the future need to undertake rehabilitation of Council's sites.

(v) Potential future remediations

Accordingly the rehabilitation is considered as a potential contingent liability in relation to possible future remediation costswhich at this stage cannot be determined.

As permitted under AASB 1051, Council has elected not to bring to account land under roads that it owned or controlled upto and including 30/6/08.

ASSETS NOT RECOGNISED

(i) Land under roads

Fines and penalty income, the result of Council issuing infringement notices is followed up and collected by the InfringementProcessing Bureau.

(ii) Infringement notices/fines

Council’s revenue recognition policy for such income is to account for it as revenue on receipt.

Accordingly, at year end, there is a potential asset due to Council representing issued but unpaid infringement notices.

Due to the limited information available on the status, value and duration of outstanding notices, Council is unable to determinethe value of outstanding income.




Page 80 of 104





§Note/Subtotal§

(a) Market risk – price risk and interest rate risk

§Subnote§

The impact on result for the year and equity of a reasonably possible movement in the price of investments held and interestrates is shown below. The reasonably possible movements were determined based on historical movements and economic conditions in place at the reporting date.

Increase of values/rates Decrease of values/ratesProfit Equity Profit Equity$ '000 $ '000 $ '000 $ '000

2020Possible impact of a 1% movement in interest rates 5,327 5,327 5,327 5,327

2019Possible impact of a 1% movement in interest rates 5,579 5,579 5,579 5,579

(b) Credit risk§Subnote§

Council’s major receivables comprise (i) rates and annual charges and (ii) user charges and fees.

Council manages the credit risk associated with these receivables by monitoring outstanding debt and employing stringentdebt recovery procedures. Council also encourages ratepayers to pay their rates by the due date through incentives.

The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties arereputable banks with high quality external credit ratings.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industrysectors and/or regions.

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptablecollection performance.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

Credit risk profile§Total§

Receivables – rates and annual chargesCredit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to thedebts – that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates and annual charges at higher than market rates which further encourages the payment of debt.

Not yetoverdue

< 1 yearoverdue

1 - 2 years overdue

2 - 5 years overdue

> 5 years overdue Total

$ '000 $ '000 $ '000 $ '000 $ '000 $ '000

2020Gross carrying amount – 8,804 1,193 981 191 11,169

2019Gross carrying amount – 8,200 980 858 243 10,281



Note 22. Financial risk management

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Note 22. Financial risk management

§Note/Subtotal§

Council applies the simplified approach for non-rates and annual charges debtors to provide for expected credit lossesprescribed by AASB 9, which permits the use of the lifetime expected loss provision. To measure the expected credit losses,non-rates and annual charges debtors have been grouped based on shared credit risk characteristics and the days past due.

§Total§

Receivables - non-rates and annual charges

The loss allowance provision as at 30 June 2020 is determined as follows. The expected credit losses incorporate forward-looking information and including the provision for COVID-19 rent abatement.

Not yetoverdue

0 - 30 days overdue

31 - 60 days overdue

61 - 90 days overdue

> 91 days overdue Total

$ '000 $ '000 $ '000 $ '000 $ '000 $ '000

2020Gross carrying amount 9,708 601 471 162 2,683 13,625Expected loss rate (%) 0.00% 7.63% 7.44% 11.31% 18.62% 4.39%ECL provision – 46 35 18 500 599

2019Gross carrying amount 18,786 6,635 373 356 2,705 28,855

(c) Liquidity risk§Subnote§

Payables, lease liabilities and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on hand tomeet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended and overdraft facilities utilised as required.

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect fundingcosts and debt servicing requirements. Council manages this risk through diversification of borrowing types, maturities andinterest rate structures. The finance team regularly reviews interest rate movements to determine if it would be advantageousto refinance or renegotiate part or all of the loan portfolio.

The timing of cash flows presented in the table below to settle financial liabilities reflects the earliest contractual settlementdates. The timing of expected outflows is not expected to be materially different from contracted cashflows.

The amounts disclosed in the table are the undiscounted contracted cash flows for non-lease liabilities and therefore thebalances in the table may not equal the balances in the Statement of Financial Position due to the effect of discounting.

payable in:Weighted

averageinterest

rate

Subjectto no

maturity ≤ 1 Year 1 - 5 Years > 5 Years Total cash

outflows

Actual carrying

values% $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

2020Trade/other payables 0.00% 52,239 48,112 – – 100,351 100,351Total financial liabilities 52,239 48,112 – – 100,351 100,351

2019Trade/other payables 0.00% 47,986 34,948 – – 82,934 82,934Total financial liabilities 47,986 34,948 – – 82,934 82,934

Loan agreement breachesDetail here any breaches to loan agreements which have occurred during the reporting year.



Note 22. Financial risk management (continued)

Page 82 of 104



Note 22. Financial risk management (continued)

§Note/Subtotal§

Council’s original financial budget for 19/20 was adopted by the Council on 26/06/2019 and is unaudited.

§Subnote§

While the Income Statement included in this General Purpose Financial Statements must disclose the original budget adoptedby Council, the Local Government Act 1993 requires Council to review its financial budget on a quarterly basis, so that it isable to manage the various variations between actuals versus budget that invariably occur throughout the year.

This note sets out the details of material variations between Council’s original budget and its actual results for the year asper the Income Statement – even though such variations may have been adjusted for during each quarterly budget review.

Material variations represent those variances between the original budget figure and the actual result that amount to 10%or more.

Variation Key: F = Favourable budget variation, U = Unfavourable budget variation.

2020 2020 2020$ '000 Budget Actual -------- Variance --------

REVENUES

Rates and annual charges 235,868 239,586 3,718 2% F

User charges and fees 41,379 37,192 (4,187) (10)% UThis unfavourable variance to budget is due to the lower than anticipated development services revenue. Over the past couple of years there has been a major reduction in large scale DAs being lodged, replaced with a high number of small scale DAs which generate much less revenue but still require the same extent of planning assessment as a bigger DA would. Along with a lower than anticipated swimming pool and health and fitness revenue as a result of COVID-19 pandemic, whereby government controls implemented made it necessary for Council to close its aquatic and leisure centres during the 2019/20 financial year

Other revenues 8,528 11,181 2,653 31% FThis favourable variance to budget is due to energy savings certificates generated by Council retrofitting mercury vapour street lighting lamps with energy efficient LED lamps. Council endorsed report CA380145 at its ordinary meeting 28 November 2018 to retrofitting of 12,657 mercury vapour street lamps with LED street lamps to be implemented over a 4 yearperiod. Council was unable to reliably forecast the timing of the revenue and therefore no estimate was included in 2019/20 original budget. Council also received increased income from road and restoration higher than originally anticipated

Operating grants and contributions 23,967 36,214 12,247 51% FThis favourable variance to budget is due to Federal Government’s roads to recovery grant originally budgeted under capitalgrants and contributions. This funding related to capital road works listed in Council’s 2019/20 Works Improvement Program which was treated at a capital grant for budgeting purposes. Along with the Federal Government’s Financial Assistance Grant (FAG) allocation being higher than originally anticipated

Capital grants and contributions 147,401 258,177 110,776 75% FThis favourable variance to budget is due to large amount of development occurring within the region which is difficult to accurately budget for. This can be seen by the drastic increase in Section 7.11 cash contributions received compared to prior results

Interest and investment revenue 11,555 11,214 (341) (3)% U

Net gains from disposal of assets 48,072 20,859 (27,213) (57)% UActual results are unfavourable mainly due to the timing of a number of land related sales that have been moved from the original budgeted sales for 2019/20 to 2020/21 financial year

Fair value increment on investment property – 100,504 100,504 ∞ F

Rental income 8,589 9,016 427 5% F

Joint ventures and associates – net profits – 664 664 ∞ FThis is related to Council’s share of profit in Civic Risk Mutual and Civic Risk West. These are separate entities set up as a joint ventures with a number of Council’s self -insurance purposes. Council is unable to reliably forecast the claims for the year or the size of the surplus/deficit and therefore, no estimate was included in the original budget for 2019/20



Note 23. Material budget variations

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§Note/Subtotal§

2020 2020 2020$ '000 Budget Actual -------- Variance --------

EXPENSES

Employee benefits and on-costs 159,548 155,977 3,571 2% F

Borrowing costs – 27 (27) ∞ U

Materials and contracts 73,161 89,161 (16,000) (22)% U

§Total§

This unfavourable to budget is largely related to the operational expenditure budget revotes and carry forwards from the prior financial year, additional expenditure approved during review period and expenditure required for works related to increase revenue.

Depreciation and amortisation 81,000 73,433 7,567 9% FTBA

Other expenses 38,709 41,684 (2,975) (8)% U

Net losses from disposal of assets – – – ∞ F

STATEMENT OF CASH FLOWS

Cash flows from operating activities 113,132 270,086 156,954 139% FThis favourable variance to budget is due to large amount of development occurring within the region which is difficult to accurately budget for. This can be seen by the drastic increase in Section 7.11 cash contributions received compared to prior results offset against the timing of a number of land related sales that have been moved from the original budgeted sales for 2019/20 to 2020/21 financial year

Cash flows from investing activities (224,718) (265,170) (40,452) 18% U

Cash flows from financing activities – (688) (688) ∞ U




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§Note/Subtotal§

The Council measures the following asset and liability classes at fair value on a recurring basis:

– Infrastructure, property, plant and equipment– Investment property

The fair value of assets and liabilities must be estimated in accordance with various accounting standards for either recognitionand measurement requirements or for disclosure purposes.

AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a ‘level’ in thefair value hierarchy as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at themeasurement date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directlyor indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

§Subnote§

(1) Assets and liabilities that have been measured and recognised at fair values§Subnote§

Fair value measurement hierarchy

2020

Date of latest

valuation

Level 1Quoted

prices inactive mkts

Level 2Significantobservable

inputs

Level 3 Significant unobserv-

able inputs Total

Recurring fair value measurementsInvestment propertyInvestment properties 30/06/2020 – 181,216 – 181,216Total investment property – 181,216 – 181,216

Infrastructure, property, plant and equipmentOperational land 30/06/2018 – 763,255 – 763,255Community land 30/06/2016 – – 779,802 779,802Crown land 30/06/2016 – – 18,592 18,592Land under roads (post 30/06/08) 30/06/2020 – – 126,206 126,206Land improvements – depreciable 30/06/2016 – – 142,796 142,796Buildings 30/06/2018 – – 337,111 337,111Roads 30/06/2020 – – 1,250,624 1,250,624Bridges 30/06/2020 – – 61,436 61,436Foothpaths 30/06/2020 – – 159,048 159,048Other road assets 30/06/2020 – – 84,110 84,110Stormwater drainage 30/06/2020 – – 653,069 653,069Swimming pools 30/06/2020 – – 5,447 5,447Total infrastructure, property, plant and equipment – 763,255 3,618,241 4,381,496



Note 24. Fair Value Measurement

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Note 24. Fair Value Measurement


§Note/Subtotal§

Fair value measurement hierarchy

Date of latest

valuation

Level 1Quoted

prices inactive mkts

Level 2Significantobservable

inputs

Level 3 Significant unobserv-

able inputs Total2019 Restated Restated Restated Restated Restated

Recurring fair value measurements§Total§

Investment propertyInvestment properties 30/06/18 – 78,688 – 78,688Total investment property – 78,688 – 78,688

Infrastructure, property, plant and equipmentOperational land 30/06/18 – 741,897 – 741,897Community land 30/06/16 – – 770,014 770,014Crown land 30/06/16 – – 18,592 18,592Land under roads (post 30/06/08) 30/06/17 – – 90,979 90,979Land improvements – depreciable 30/06/16 – – 122,993 122,993Buildings 30/06/18 – – 342,154 342,154Roads 30/06/15 – – 1,051,716 1,051,716Bridges 30/06/15 – – 41,694 41,694Foothpaths 30/06/15 – – 139,939 139,939Other road assets 30/06/15 – – 61,292 61,292Stormwater drainage 30/06/15 – – 589,967 589,967Swimming pools 30/06/15 – – 3,204 3,204Total infrastructure, property, plant and equipment – 741,897 3,232,544 3,974,441

Note that capital WIP is not included above since it is carried at cost.

(2) Valuation techniques used to derive level 2 and level 3 fair values§Subnote§

Where Council is unable to derive fair valuations using quoted market prices of identical assets (ie. level 1 inputs) Councilinstead utilises a spread of both observable inputs (level 2 inputs) and unobservable inputs (level 3 inputs).

The fair valuation techniques Council has employed while utilising level 2 and level 3 inputs are as follows:

Investment property comprises land and buildings that are principally held for long-term rental yields, capital gains, or both,that is not occupied by Council. Full revaluations are carried out every three years by a member of the Australian PropertyInstitute with an appropriate index utilised each year in between the full revaluations. A revaluation of Council’s investmentproperties by APV Valuers & Asset Management Pty Ltd was performed for 30 June 2020. Land values have been determinedby direct comparison to development sites in the Blacktown area and surrounding CBD areas. The value of buildings has beendetermined using the market approach (capitalisation of income, or direct comparison).

Investment property

This asset class is categorised as level 2 in the fair value hierarchy as the inputs used in the valuation of these assets areobservable.

Council’s non-current assets are continually revalued (over a 5 year period) in accordance with the fair valuation policy asmandated by the Office of Local Government.

Infrastructure, property, plant and equipment (IPP&E)

Plant & Equipment, Office Equipment and Furniture & Fittings

Plant and equipment, office equipment and furniture & fittings assets are recognised and valued at cost.Council assumes that the carrying amount reflects the fair value of the assets due to the nature of the items, therefore theseassets are disclosed at fair value in the notes.These asset categories include:



Note 24. Fair Value Measurement (continued)

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• Plant and fleet• Major plant items – tractors, excavators, street sweepers, tippers, rollers, forklifts, back hoes and wood chippers

Minor plant and equipment items – generators, mowers, weed harvester, trailers, chainsaws, wood chippers, power hand tools,CCTV and portable air conditioning units• Fleet vehicles – trucks, commercial vehicles and passenger vehicles• Office equipment – computer hardware, communications equipment, digital cameras and photocopiers• Furniture & fittings – work stations, storage cabinets, tables and chairs

The unobservable level 3 inputs used include:• Straight line pattern of consumption• Useful life• No residual value

Council reviews the value of these assets based on the gross replacement cost of similar assets. There has been no changein the valuation process during the reporting period.

Community and Crown land

This asset class is comprised of all land classified as community land under the Local Government Act 1993 and land underthe care and management of Council on behalf of the Crown. Valuations for Council's community land has been based on eitherthe Valuer General's 2016 valuation for rating purposes where available, or the average of the community land purchasesduring the 2019/20 financial year, discounted by 50% of average Council wide Valuer General's revaluation. The 50% discountwas used for community land in order to reflect the fair value of land that is not able to be sold in an active market withoutany restrictions to represent half the value of operational land.

Operational land

This asset class is comprised of all land classified as operational land under the Local Government Act 1993. The last valuationwas undertaken as at 30 June 2018 by Liquid Pacific Holdings Pty Ltd.The carrying amount of operational land was assessed at this reporting date by management using an appropriate propertyprice index. The change in carrying value was assessed as immaterial.The fair value assessment has been determined by referencing it to current prices in an active market for similar properties.Where such information is not available, current prices in an active market for properties of a different nature or recent pricesof similar properties in less active markets, adjusted to reflect those differences, are considered. Appropriate adjustments arealso made for the inherent features of the property such as fire-prone, flood zonings and usability of the land.This asset class is categorised as level 2 as the inputs used in the valuation of these assets are observable.

Land under roads

Council has elected to recognised land under roads acquired after the 1 July 2008.The fair value for land under roads has been determined using a unit rate per square metre, derived from the Valuer General’svaluation performed for rating purposes, and applying a discount of 90%. a full valuation for land under roads was performedas at 30 June 2020.Given the nature of land under roads, comparable sales data is generally not available. As the Valuer General’s valuationconsiders land in all zoning, average unit derived from the Valuer’s General’s valuation is considered the most practicableapproach to valuing land under roads. The 90% discounting method relates to the englobo valuation methodology andrecognises the restricted use of land under roads but using the average values of surrounding properties. A full valuation wasperformed for the year ending 30 June 2020 by Council staff. Council elected not to recognise the value of land under roadsacquired before the 1 July 2008, worth approximately $3 billion.Community land purchases for 2016/17, 2017/18, 2018/19 and 2019/20 have been discounted by $36.698 million, $48.954million, $28.533 million and $40.778 million respectively. If these amounts were included, Council's infrastructure, property,plant and equipment net carrying amount would be $7.9 billion instead of $4.8 billion.

Land improvementsThis asset class is comprised of landscaping, cycle ways, estuary protection works, paved public areas in open space,playground equipment, field lighting, irrigation and other assets generally within open space areas.

Council's internal engineering services performed a revaluation of land improvements as at 30 June 2016. The revaluation wasdetermined by applying unit rates derived from Council's contracts, third party publications (such as Rawlinson's and Cordell's)and actual costs of recent works performed. Condition assessments were conducted by Council’s inspectors.

This asset class is categorised a level 3 as some of the above-mentioned inputs used in the valuation of these assets requiresignificant professional judgment and are therefore unobservable.




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Buildings

As at 30 June 2018, a desktop review of Council's buildings was undertaken by APV Valuers & Asset Management Pty Ltd,based on revaluation work by the same company commissioned in September 2017, using the cost approach.

This method is based on determining the replacement cost of the modern equivalent (or cost of reproduction where relevant)and then adjusting for the level of consumed future economic benefit and impairment.

In accordance with the depreciation requirements of the property, plant and equipment accounting standard, “complex assets”are componentised and depreciated separately. This may include further splitting each component into the short-life and long-life parts to differentiate between that part of the component that is renewed and that part which is recycled. As they have adifferent useful life they are to be depreciated separately.

This asset class is categorised as level 3 as some of the inputs used in the valuation of these assets require significantprofessional judgment and are unobservable.There has been no change in the valuation process during the reporting period.

Swimming pools

This asset class is comprised of external swimming pools which did not meet the definition of a building.

A comprehensive valuation was conducted by APV Valuers and Asset Management as at 30 June 2020 using the costapproach. Under this approach the cost to replace the asset is calculated and then adjusted to take account of anyobsolescence.

Significant unobservable inputs considered in the valuation of these assets are remaining useful life, pattern of consumption,dimensions, components and asset condition.

This asset class is categorised as level 3 as some of the above-mentioned inputs used in the valuation of these assets requiresignificant professional judgment and are therefore unobservable.

Infrastructure Assets

- Roads

This asset class includes road pavement and seal, kerb and gutter, medians and unsealed roads. Council’s roads arecomponentised into formation, base pavement, sub-base payment, surface and kerb and gutter and further separated intosegments for inspection and valuation.

The formation costs of roads are recognised and valued at cost. Council assumes that the carrying amount reflects the fairvalue of the assets due to the nature of the items. The formation of road bulk earthworks is non-depreciable.

A comprehensive valuation has been completed as at 30 June 2020 by Assetic Australia Pty Ltd. The cost approach wasadopted to value roads. The useful lives and conditions were determined by a complete condition assessment using digitalimaging technology to gather the granular condition of the road network by external specialist Infrastructure ManagementGroup Pty Ltd (IMG).

The valuations are based on the fair value of the modern equivalent of the existing assets. This approach has included anassessment of the overall useful life of each type of asset and the subsequent determination of the remaining useful life ofeach asset. The unit rates, which is a key unobservable input, is determined using rates stipulated in contracts with third partysuppliers or third-party publications (such as Rawlinson's construction cost guide).

This asset class is categorised as level 3 as some of the above-mentioned inputs used in the valuation of these assets requiresignificant professional judgement and are therefore unobservable.

- Bridges

This asset class is comprised of all pedestrian and vehicle access bridges.A revaluation was conducted as at 30 June 2020 by Assetic Australia Pty Ltd.

The bridges were inspected by pitt&sherry engineers and were valued using the cost approach. The significant unobservableinputs used in valuing bridges include: useful life, pattern of consumption, asset condition and gross replacement cost. The




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unit rates were determined using rates stipulated in contracts with third party suppliers or third-party publications (such asRawlinson's construction cost guide).


- Footpaths

This asset class is comprised of pedestrian walkways. A comprehensive valuation was conducted by Assetic Australia Pty Ltdas at 30 June 2020. The unit rates, which are used to determine the current replacement cost, were determined using ratesstipulated in contracts with third-party suppliers or third-party publications (such as Rawlinson's construction cost guide). Someof the other inputs considered in the valuation of these assets are remaining useful life, pattern of consumption, dimensions,components, asset condition and residual value.Assessments of footpaths were made using Council’s current inspection data.

This asset class is categorised a level 3 as some of the above-mentioned inputs used in the valuation of these assets requiresignificant professional judgment and are therefore unobservable.

- Other road assets

This asset class is comprised of car parks, traffic control devices, public transport, pedestrian fencing and other street furniture.A comprehensive valuation was conducted by Assetic Australia Pty Ltd as at 30 June 2020. The unit rates were determinedusing rates stipulated in contracts with third-party suppliers or third-party publications (such as Rawlinson's construction costguide). Condition assessments for carparks were completed by IMG and traffic facility condition assessments were completeby Council inspectors. Some of the other significant inputs considered in the valuation of these assets are remaining usefullife, pattern of consumption, dimensions, components, asset condition and residual value.


- Stormwater DrainageThe Stormwater drainage asset class consists of basins, pits and pipes, gross pollutant traps, open channels and culverts.This includes formation of drainage areas which include bulk earthworks that are non-depreciable and held at cost.

A valuation of stormwater drainage was performed by Assetic Australia Pty Ltd as at 30 June 2020. The gross value of theinfrastructure assets is determined using rates stipulated in contracts with third party suppliers, which is a key observableinput. The age and useful life of the assets was used to derive the condition.

This asset class is categorised as level 3 as some of the above-mentioned inputs used in the valuation of these assets requiresignificant professional judgement and are therefore unobservable.

Other Assets

- Library Books

Assets included in this asset category consist of library books, e-books, online journals, magazines, CDs and DVDs whichare recognised and valued at cost. Council assumes that the carrying amount reflects the fair value of the assets due to thenature of the items. There are no major variances between the fair value and carrying amount of these assets. Therefore theseassets are disclosed at fair value in the notes.

Whilst these assets are recognised at cost with supporting supplier invoices (observable input) the remaining significant inputs(useful life, pattern of consumption, asset condition and residual values) are unobservable and therefore categorised as level 3.

There has been no change in the valuation process during the reporting period.




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§Note/Subtotal§

(3) Fair value measurements using significant unobservable inputs (level 3)

a. The following tables present the changes in level 3 fair value asset classes.§Total§

IPP&EActual$ '000

2019Opening balance 3,861,512Purchases (GBV) 186,662Disposals (WDV) (6,690)Depreciation and impairment (62,829)Wip transfers 24,392Transfers from/(to) real estate assets held for resale (73)Revaluation decrements to equity (ARR) (28,533)Closing balance 3,974,441

2020Opening balance 3,974,441Purchases (GBV) 160,121Disposals (WDV) (4,058)Depreciation and impairment (63,301)Wip transfers 14,460Transfers from/(to) real estate assets held for resale (2,352)Revaluation decrements to equity (ARR) (44,425)Revaluation increments to equity (ARR) 346,610Closing balance 4,381,496

b. Significant unobservable valuation inputs used (for level 3 asset classes) and their relationship to fair value.§Total§

The following table summarises the quantitative information relating to the significant unobservable inputs used in deriving the various level 3 asset class fair values.

Valuation technique/s Unobservable inputs

Infrastructure, property, plant and equipmentCommunity land Land values obtained from the NSW

Valuer-General, discounted at 50%Land value, land area

Land under roads Englobo methodology Land value, land areaLand improvements Cost approach Current replacement cost of modern

equivalent asset, asset condition, remaining lives, residual value

Buildings Cost approach Current replacement cost of modern equivalent asset, asset condition, remaining lives, residual value

Swimming pools Cost approach Current replacement cost of modernequivalent asset, useful life, pattern ofconsumption and asset condition.

Roads, bridges & footpaths Cost approach Current replacement cost of modernequivalent asset, useful life, pattern ofconsumption and asset condition.

Stormwater drainage Cost approach Current replacement cost of modernequivalent asset, useful life, pattern ofconsumption and asset condition.




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§Note/Subtotal§

c. The valuation process for level 3 fair value measurements§Total§

The valuation process for each asset class that uses level 3 fair value measurements are discussed above in section 3.

The main unobservable (level3) inputs of useful life, pattern of consumption and asset condition are based on industryaverages and historical patterns, as well as physical inspections for asset condition, and we ensure that any assets that areimpaired outside of these assumptions are written off and replaced as required.

The valuations for buildings and operational land have been undertaken externally, with the other valuations beingperformed internally.

The external valuations are reviewed by both the Asset Management team and Finance to determine if there are anyconcerns that need to be addressed or clarifications made.

(4) Highest and best use§Subnote§

All of Council’s non-financial assets are considered as being utilised for their highest and best use.




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(a) Key management personnel

Key management personnel (KMP) of the council are those persons having the authority and responsibility for planning, directing and controlling the activities of the council, directly or indirectly.

The aggregate amount of KMP compensation included in the Income Statement is:

2020 2019$ '000 $ '000

Compensation:Short-term benefits 3,567 3,341Post-employment benefits 94 213Other long-term benefits 49 (48)Total 3,710 3,506



Note 25. Related party disclosures

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Note 25. Related party disclosures


§Note/Subtotal§

(b) Other transactions with KMP and their related parties

Value of transactions during year

Outstanding balance

(incl. loans and commitments) Terms and conditions

Provisionsfor impairmentof receivables

outstanding

Expenserecognised for

impairmentof receivables

Nature of the transaction Ref $ '000 $ '000 $ '000 $ '000

2020Salary of close family member of KMP 1 185 – Per award and conditions – –Lease of Council property to KMPs 2 – – 30 days – –

2019Salary of close family member of KMP 1 131 – Per award and conditions – –Lease of Council property to KMPs 2 19 – 30 days – –

1 Three close family members employed by Council during the financial year. These persons was employed under the relevant conditions and Award.

2Council owns numerous properties held for rental and other investment purposes. There were two properties owned by Council which were leased to two KMPs. These properties has since beendemolished in the previous financial year to make way for new development.



Note 25. Related party disclosures (continued)

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§Note/Subtotal§

(c) Other related party transactions

Value of transactions during year

Outstanding balance

(incl. loans and commitments) Terms and conditions

Provisionsfor impairmentof receivables

outstanding

Expenserecognised for

impairmentof receivables

Ref $ '000 $ '000 $ '000 $ '000

2020Council contribution to subsidiary Blacktown Venue Mgt Ltd 3 10,439 – 30 days – –Distribution of equity and revenue from joint venture 4 664 – 30 days – –Inter-entity payable to Blacktown Venue Mgt Ltd 5 – – 30 days – –Inter-entity receivable from Blacktown Venue Mgt Ltd 5 – 250 30 days – –2019Council contribution to subsidiary Blacktown Venue Mgt Ltd 3 7,896 – 30 days – –Distribution of equity and revenue from joint venture 4 928 – 30 days – –Inter-entity payable to Blacktown Venue Mgt Ltd 5 – – 30 days – –Inter-entity receivable from Blacktown Venue Mgt Ltd 5 – 277 30 days – –

3Council owns and operates a subsidiary by the name of Blacktown Venue Management Ltd whereby Council provides a contribution to this subsidiary to ensure continued operations. Furtherdetails of this related entity are included at Note 16.

4Council is involved in a joint venture for self-insurance purposes with Civic Risk Mutual and Civic Risk West. Council received a distribution of revenue and a distribution of equity in the currentfinancial year from this. Further details regarding this related entity are included at Note 16.

5 The inter-entity payable/receivable is due to the timing of payments made for and on behalf of the subsidiary where a cash frefund did not occur prior to the closing of banking day.

Note 26. Events occurring after the reporting date§Note§

Council is unaware of any material or significant ‘non-adjusting events’ that should be disclosed.

§Subnote§




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Blacktown City Council and its subsidiary Financial Statements 2020 Notes to the Consolidated Financial Statements for the year ended 30 June 2020

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Note 27. Statement of developer contributions §Note/Subtotal §

Under the Environmental Planning and Assessment Act 1979, Council has significant obligations to provide Section 7.11 (contributions towards provision or improvement of amenities or services) infrastructure in new release areas. It is possible that the funds contributed may be less than the cost of this infrastructure, requiring Council to borrow or use general revenue to fund the difference.

Summary of contributions and levies

as at 30/6/2019 as at 30/6/2020Contributions Cumulative

received during the year Interest Expenditure Internal Held as internalOpening earned during borrowing restricted borrowingsBalance in year year (to)/from asset due/(payable)

$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Cash Non-cash

Drainage 52,216 58,037 19,642 1,539 (80,002) 12,440 63,872 12,680 Roads 53,144 19,396 3,483 993 (37,943) 15,560 54,632 (7,280) Traffic facilities 323 87 - 5 (1) - 413 (1,200) Parking 529 - - 9 (2) - 535 - Open space 73,933 51,523 1,256 1,061 (36,780) (28,000) 62,994 (13,400) Community facilities 17,746 1,674 0 231 (32) - 19,619 (1,800) Other 546 - - 9 (2) - 553 - Overbridges 1,008 19 - 12 (1) - 1,038 - Tree planting 206 - - 4 (1) - 209 - E2 conservation 6,550 2,199 1 30 (56) - 8,724 11,000 S7.11 contributions - under a plan 206,201 132,935 24,382 3,894 (154,823) - 212,589 - Total S7.11 and S7.12 revenue under plans 206,201 132,935 24,382 3,894 (154,823) - 212,589 - S7.11 not under plans 453 - - 8 (2) - 459 - Voluntary planning agreements 7,320 952 - 139 - - 8,411 Total contributions 213,974 133,887 24,382 4,041 (154,824) - 221,459 -


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$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Cash Non-cash

S7.11 Contributions - under a planCONTRIBUTION PLAN NUMBER 1 - 1980's Release AreaDrainage (2,478) 922 - 89 (1) - (1,469) - Roads 2,291 411 - 59 (0) - 2,761 - Open space 13,618 595 - 194 (1) - 14,406 - Community facilities 12,593 219 - 150 (0) - 12,961 - Overbridges 1,008 19 - 12 (1) - 1,038 - Total 27,031 2,166 - 504 (4) - 29,696 - CONTRIBUTION PLAN NUMBER 2 - Local RoadworksRoads 2,368 280 - 52 (0) - 2,700 - Total 2,368 280 - 52 (0) - 2,700 - CONTRIBUTION PLAN NUMBER 3 - Open Space in Established Residential AreasOpen space 14,388 1,694 - 274 (77) - 16,279 - Total 14,388 1,694 - 274 (77) - 16,279 - CONTRIBUTION PLAN NUMBER 4 - Mount Druitt Development AreaDrainage 6,533 - - 75 (28) - 6,580 - Roads (2,255) - - - - - (2,255) - Total 4,278 - - 75 (28) - 4,325 -


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$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Cash Non-cash

CONTRIBUTION PLAN NUMBER 5 - Parklea Release AreaDrainage 3,221 21 - 66 (18) - 3,291 - Roads 3,444 32 - 49 (139) - 3,386 (14,800) Open space 8,693 511 - 185 (173) - 9,216 - Community facilities 1,772 73 - 28 (8) - 1,865 - Total 17,130 637 - 328 (337) - 17,758 (14,800) CONTRIBUTION PLAN NUMBER 10 - Tree Planting on Nature StripsTree planting 206 - - 4 (1) - 209 - Total 206 - - 4 (1) - 209 - CONTRIBUTION PLAN NUMBER 15 - Metella Road FloodplainDrainage 475 - - 8 (2) - 482 - Total 475 - - 8 (2) - 482 - CONTRIBUTION PLAN NUMBER 17 - Quakers Hill Commercial PrecinctTraffic facilities 44 - - 1 (0) - 44 - Total 44 - - 1 (0) - 44 -


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$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Cash Non-cash

CONTRIBUTION PLAN NUMBER 18 - Eastern Creek Stage 3Drainage 3,458 3,987 - 102 (21) - 7,526 - Roads 1,953 13 - 34 (797) - 1,203 - Total 5,411 4,000 - 136 (818) - 8,729 - CONTRIBUTION PLAN NUMBER 19 - Blacktown Growth PrecinctDrainage 1,795 308 - 33 (8) - 2,128 - Roads 2,600 999 2 48 (24,152) 21,000 497 17,000 Traffic facilities 279 87 - 5 (1) - 369 (1,200) Parking 529 - - 9 (2) - 535 - Open space 108 1,824 1 10 (3,542) 1,600 2 20,600 Community facilities 510 561 - 11 (5) - 1,078 (1,800) Other 546 - - 9 (2) - 553 - Total 6,367 3,779 4 124 (27,712) 22,600 5,162 34,600 CONTRIBUTION PLAN NUMBER 20 - Riverstone & Alex Avenue PrecinctsDrainage 12,367 23,530 4,818 540 (48,090) 7,000 165 7,000 Roads 31,296 4,990 723 482 (9,417) - 28,074 (11,000) Open space 32,783 24,779 721 290 (9,913) (39,500) 9,160 (96,000) Community facilities 1,879 457 0 26 (13) - 2,349 - E2 conservation 4,572 1,676 1 5 (43) - 6,210 11,000 Total 82,898 55,432 6,263 1,342 (67,476) (32,500) 45,958 (89,000)


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$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Cash Non-cash

CONTRIBUTION PLAN NUMBER 21 - Marsden ParkDrainage 7,601 18,345 14,824 324 (22,675) 3,500 21,918 (9,100) Roads 10,947 3,125 2,757 215 (1,260) (3,500) 12,284 - Open space 12 3,002 534 17 (129) - 3,435 25,800 Community facilities 94 99 - 1 (1) - 194 - E2 conservation 232 93 - 3 (2) - 327 - Total 18,885 24,664 18,115 560 (24,067) - 38,157 16,700 CONTRIBUTION PLAN NUMBER 22 - Area 20 PrecinctDrainage 2,347 10,263 - 19 (5,128) 1,940 9,441 14,780 Roads 9 8,493 - 44 (2,172) (1,940) 4,434 1,520 Open space 39 12,333 - 10 (22,209) 9,900 74 36,200 Community facilities 133 17 - 1 (1) - 149 - E2 conservation 647 81 - 3 (4) - 728 - Total 3,176 31,187 - 77 (29,515) 9,900 14,825 52,500 CONTRIBUTION PLAN NUMBER 24 - Schofields PrecinctDrainage 16,897 662 - 284 (4,032) - 13,811 - Roads 492 1,053 - 9 (6) - 1,549 - Open space 4,293 6,785 1 81 (736) - 10,423 - Community facilities 765 249 - 14 (5) - 1,022 - E2 conservation 1,099 348 - 20 (7) - 1,459 - Total 23,545 9,097 1 407 (4,786) - 28,264 -

S7.11 Contributions - not under a planCONTRIBUTIONS - NOT UNDER A PLANRoads 453 - - 8 (2) - 459 - Total 453 - - 8 (2) - 459 -

§Note/Subtotal§

Amounts Indicator Prior periods Benchmark$ '000 2020 2020 2019 2018

1. Operating performance ratioTotal continuing operating revenue excluding capital grants and contributions less operating expenses 1, 2 (15,879)Total continuing operating revenue excluding capital grants and contributions 1

344,403(4.61)% (7.30)% (4.83)% >0.00%

2. Own source operating revenue ratioTotal continuing operating revenue excluding all grants and contributions 1 308,189Total continuing operating revenue 1 602,580

51.14% 50.81% 46.27% >60.00%

3. Unrestricted current ratioCurrent assets less all external restrictions 327,764Current liabilities less specific purpose liabilities 119,491 2.74x 3.15x 3.05x >1.50x

4. Debt service cover ratioOperating result before capital excluding interest and depreciation/impairment/amortisation 1 57,581Principal repayments (Statement of Cash Flows) plus borrowing costs (Income Statement)

715 80.53x ∞ ∞ >2.00x

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstanding 11,344Rates, annual and extra charges collectible 250,730 4.52% 4.40% 4.33% <5.00%

6. Cash expense cover ratioCurrent year’s cash and cash equivalents plus allterm deposits 567,173Monthly payments from cash flow of operating and financing activities

26,80121.16mths

19.12mths

21.91mths >3.00

mths

§Subnote§

(1) Excludes fair value increments on investment properties, reversal of revaluation decrements, reversal of impairment losses on receivables, net gain on sale of assets and net share of interests in joint ventures and associates using the equity method and includes pensioner rate subsidies

(2) Excludes impairment/revaluation decrements of IPPE, fair value decrements on investment properties, net loss on disposal of assets and net loss on share of interests in joint ventures and associates using the equity method



Note 28(a). Statement of performance measures – consolidated results

Page 100 of 104



Note 28(a). Statement of performance measures – consolidated results

§Note/Subtotal§

1. Operating performance ratio

Purpose of operating performance ratio

This ratio measures Council’s achievement of containing

operating expenditure within operating revenue.

Commentary on 2019/20 result

2019/20 ratio (4.61)%

Operating performance ratio is a negative (4.6%), which has not met the benchmark of 0% or better. However, the result is still better than the target in

Council’s long- term financial plan of negative (6.8%).

Benchmark: ― > 0.00% Ratio achieves benchmark

Source of benchmark: Code of Accounting Practice and Financial Reporting #28 Ratio is outside benchmark

§Subnote§

2. Own source operating revenue ratio

Purpose of own source operating revenue ratio

This ratio measures fiscal flexibility. It is the degree of reliance on external funding

sources such as operating grants and contributions.


2019/20 ratio 51.14%

This indicator is largely affected by Council’s high level of development activity, which means a

significant proportion of Council’s revenue is from Section 7.11 development contributions (works in

kind). Council did not meet the target of 60%.

Benchmark: ― > 60.00% Ratio achieves benchmark


3. Unrestricted current ratio

Purpose of unrestrictedcurrent ratio

To assess the adequacy of working capital and its ability to satisfy obligations in the short

term for the unrestricted activities of Council.


2019/20 ratio 2.74x

A ratio 2.74 x indicates that Council has a sound liquidity position, meaning there are sufficient liquid assets to meet current liabilities as they fall due. A

ratio less than 1.5x is deemed satisfactory as a Council may be unable to meet short term financial

commitments.

Benchmark: ― > 1.50x Ratio achieves benchmark





Note 28(b). Statement of performance measures – consolidated results (graphs)

Page 101 of 104




4. Debt service cover ratio

Purpose of debt servicecover ratio

This ratio measures the availability of operating cash to service debt including interest, principal and lease payments


2019/20 ratio 80.53x

Ratio of 80.53 x indicates that Council has sound ability of operating cash to service debt including

interest and principle repayments which is well aboveindustry benchmark of greater than 2 x.

Benchmark: ― > 2.00x Ratio achieves benchmark


5. Rates, annual charges, interest and extra charges outstanding percentagePurpose of rates, annual charges,

interest and extra charges outstanding

To assess the impact of uncollected rates and annual

charges on Council’s liquidity and the adequacy of recovery efforts.


2019/20 ratio 4.52%

This measure of 4.52% reflects that Council has been able to continue to maintain this ratio well below

the industry benchmark of 5%.

Benchmark: ― < 5.00% Ratio achieves benchmark


6. Cash expense cover ratio

Purpose of cash expense cover ratio

This liquidity ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash

inflow.


2019/20 ratio 21.16 mths

This ratio calculated by dividing a Council’s Cash andCash Equivalents as per the Statement of Cash

Flows by the net of the operational expenses less depreciation and borrowing costs and multiplying the result by 12. The benchmark for this ratio is greater than 3 months. For 2019/20, Council exceeded the

benchmark with a ratio of 21.16.

Benchmark: ― > 3.00mths Ratio achieves benchmark





Page 102 of 104




INDEPENDENT AUDITOR’S REPORT

Report on the general purpose financial statements

Blacktown City Council

To the Councillors of Blacktown City Council

Opinion

I have audited the accompanying financial statements of Blacktown City Council (the Council), which

comprise the Statement by Councillors and Management, the Income Statement and Statement of

Comprehensive Income for the year ended 30 June 2020, the Statement of Financial Position as at

30 June 2020, the Statement of Changes in Equity and Statement of Cash Flows for the year then

ended and notes comprising a summary of significant accounting policies and other explanatory

information. The financial statements include the consolidated financial statements of the Council and

the entities it controlled at the year’s end or from time to time during the year.

In my opinion:

• the Council’s accounting records have been kept in accordance with the requirements of the

Local Government Act 1993, Chapter 13, Part 3, Division 2 (the Division)

• the financial statements:

- have been prepared, in all material respects, in accordance with the requirements of this

Division

- are consistent with the Council’s accounting records

- present fairly, in all material respects, the financial position of the Council as at

30 June 2020, and of its financial performance and its cash flows for the year then ended

in accordance with Australian Accounting Standards

• all information relevant to the conduct of the audit has been obtained

• no material deficiencies in the accounting records or financial statements have come to light

during the audit.

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the

standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.

I am independent of the Council in accordance with the requirements of the:

• Australian Auditing Standards

• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants (including Independence Standards)’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an

Auditor-General

• mandating the Auditor-General as auditor of councils

• precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Other Information

The Council’s annual report for the year ended 30 June 2020 includes other information in addition to

the financial statements and my Independent Auditor’s Report thereon. The Councillors are

responsible for the other information. At the date of this Independent Auditor’s Report, the other

information I have received comprise the special purpose financial statements and Special Schedules

(the Schedules).

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the special purpose financial

statements and Special Schedule - Permissible income for general rates.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other

information, I must report that fact.

I have nothing to report in this regard.

The Councillors’ Responsibilities for the Financial Statements

The Councillors are responsible for the preparation and fair presentation of the financial statements in

accordance with Australian Accounting Standards and the Local Government Act 1993, and for such

internal control as the Councillors determine is necessary to enable the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, the Councillors are responsible for assessing the Council’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in

accordance with Australian Auditing Standards will always detect material misstatements.

Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar3.pdf. The

description forms part of my auditor’s report.

The scope of my audit does not include, nor provide assurance:

• that the Council carried out its activities effectively, efficiently and economically

• on the Original Budget information included in the Income Statement, Statement of Cash Flows,

and Note 23 Material budget variations

• on the Special Schedules. A separate opinion has been provided on Special Schedule -

Permissible income for general rates

• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Jan-Michael Perez

Director, Financial Audit

Delegate of the Auditor-General for New South Wales

30 October 2020

SYDNEY

http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf

Mayor Tony Bleasdale Blacktown City Council 62 Flushcombe Rd BLACKTOWN NSW 2148

30 October 2020

Dear Mayor

Report on the Conduct of the Audit

for the year ended 30 June 2020


I have audited the general purpose financial statements (GPFS) of the Blacktown City Council (the

Council) for the year ended 30 June 2020 as required by section 415 of the Local Government Act

1993 (the Act).

I expressed an unmodified opinion on the Council’s GPFS.

This Report on the Conduct of the Audit (the Report) for the Council for the year ended 30 June 2020

is issued in accordance with section 417 of the Act. This Report should be read in conjunction with my

audit opinion on the GPFS issued under section 417(2) of the Act.

INCOME STATEMENT

Operating result

2020 2019* Variance

$m $m %

Rates and annual charges revenue

239.6 225.3

Grants and contributions revenue

294.4 290.9

Operating result from continuing operations

364.3 240.4

Net operating result before capital grants and contributions

106.1 (21.5)

* The 2019 comparatives have been restated to correct a prior period error. Note 17 of the financial statements provides details of the prior period error.

6.3

1.2

51.5

593.5

Contact: Jan-Michael Perez

Phone no: 02 9275 7115

Our ref: D2022510/1693

2

The Council’s operating result from continuing operations of $364.3 million, which includes

depreciation and amortisation expenses of $73.4 million, was $123.9 million higher than the 2018–19

result. This year's result is primarily driven by the fair value increment on investment properties of

$100.5 million, and net gains from the disposal of assets of $20.9 million.

The net operating result before capital grants and contributions was surplus $106.1 million, an

increase of $127.6 million from the previous year. This year's net operating result was largely driven

by the fair value increment on investment properties.

Rates and annual charges revenue was $239.6 million ($225.3 million in 2018-19). The 6.3 per cent

increase from the prior year is due to a general rate increase of 2.7 per cent and an expanding rates

base resulting from development activity during the year.

STATEMENT OF CASH FLOWS

The Statement of Cash Flows

illustrates the flow of cash and

cash equivalents moving in and

out of the Council during the year.

Cash and cash equivalents at 30

June 2020 was $187.2 million

compared with $182.9 million in

2018-19.

Operating activities contributed net cash inflow of $270.1 million ($154.6 million in 2018-19). This

increase in operating activity cash flow is primarily attributable to the higher developer cash

contributions received by the Council compared to the prior year. Net cash used in investing activities

was $127.9 million higher than the previous year driven by an increase in the purchase of investment

securities.

FINANCIAL POSITION

Cash and investments

Cash and investments 2020 2019 Commentary

$m $m

External restrictions 323.2 302.6 Cash and investments amounted to $619.3 million at 30

June 2020 (2019: $545.0 million). The increase is due

to additional long term deposits. Internal restrictions 249.0 221.2

Unrestricted 47.1 21.2

Cash and investments 619.3 545.0

Externally restricted cash and investments are restricted in their use by externally imposed

requirements. These include unspent development contributions and specific purpose grants,

unexpended loans and domestic waste charges.

Internally restricted cash and investments have been restricted in their use by resolution or policy of

the Council to reflect forward plans and identified programs of works. These totalled $249.0 million

and their purpose is fully disclosed in Note 7 of the financial statements.

(300)

(200)

(100)

0

100

200

300

2018 2019 2020

$ m

illi

on

Year ended 30 June

Net cash flows for the year

Operating activities Investing activities Financing activities

3

The Council's unrestricted cash and investments amounted to $47.1 million, which is available to

provide liquidity for day to day operations.

PERFORMANCE

Performance measures

The following section provides an overview of the Council’s performance against the performance

measures and performance benchmarks set by the Office of Local Government (OLG) within the

Department of Planning, Industry and Environment.

Operating performance ratio

The ‘operating performance ratio’

measures how well council contained

operating expenditure within

operating revenue (excluding capital

grants and contributions, fair value

adjustments, and reversal of

revaluation decrements). The

benchmark set by OLG is greater

than zero per cent.

The Council did not meet the OLG

benchmark for the current reporting

period.

The 2019 ratio was restated to correct

a prior period error.

Own source operating revenue ratio

The ‘own source operating revenue

ratio’ measures council’s fiscal

flexibility and the degree to which it

relies on external funding sources

such as operating grants and

contributions. The benchmark set by

OLG is greater than 60 per cent.

The Council did not meet the OLG


period.



(8)

(7)

(6)

(5)

(4)

(3)

(2)

(1)

0

2018 2019 2020

Ra

tio

(%

)

Year ended 30 June



OLG benchmark > 0%

0

10

20

30

40

50

60

70

2018 2019 2020

Rati

o (

%)

Year ended 30 June



OLG benchmark > 60%

4

Unrestricted current ratio

The ‘unrestricted current ratio’ is

specific to local government and

represents council’s ability to meet its

short-term obligations as they fall due.

The benchmark set by OLG is greater

than 1.5 times.

The Council exceeded the OLG


period.

Debt service cover ratio

The ‘debt service cover ratio’

measures the operating cash to

service debt including interest,

principal and lease payments. The

benchmark set by OLG is greater

than two times.

This year's result is driven by the first-

time application of AASB 16 Leases.



period.

Rates and annual charges outstanding percentage

The ‘rates and annual charges

outstanding percentage’ assesses the

impact of uncollected rates and

annual charges on council’s liquidity

and the adequacy of debt recovery

efforts. The benchmark set by OLG is

less than 5 per cent for metro

councils.



period.



0

0.5

1

1.5

2

2.5

3

3.5

2018 2019 2020R

ati

o (

x)

Year ended 30 June



OLG benchmark > 1.5x

0

10

20

30

40

50

60

70

80

90

2018 2019 2020

Rati

o (

x)

Year ended 30 June



OLG benchmark > 2x

3.8

4

4.2

4.4

4.6

4.8

5

5.2

2018 2019 2020

Ra

tio

(%

)

Year ended 30 June



OLG benchmark < 5%

5

Cash expense cover ratio

This liquidity ratio indicates the

number of months the council can

continue paying for its immediate

expenses without additional cash

inflow. The benchmark set by OLG is

greater than three months.



period.

Infrastructure, property, plant and equipment renewals

Infrastructure, property, plant and equipment renewals for 2019-20 totalled $53.2 million compared

with $53.3 million in the previous year. The renewals have remained constant from prior year however,

there were $5.7 million less renewals for general plant and equipment which was offset by increase in

renewals for infrastructure assets in the current year.

OTHER MATTERS

Impact of new accounting standards

AASB 15 ‘Revenue from Contracts with Customers’ and AASB 1058 ‘Income for Not-for-Profit

Entities’

The Council adopted the new accounting standards AASB 15 ‘Contracts with Customers’ and

AASB 1058 ‘Income of Not-for-Profit Entities’ (collectively referred to as the Revenue Standards) for

the first time in their 2019–20 financial statements.

AASB 15 introduces a new approach to recognising revenue based on the principle that revenue is

recognised when control of a good or service transfers to a customer. AASB 15 impacts the timing and

amount of revenue recorded in a councils’ financial statements, particularly for grant revenue.

AASB 15 also increases the amount of disclosures required.

AASB 1058 prescribes how not-for-profit entities account for transactions conducted on

non-commercial terms and the receipt of volunteer services. AASB 1058 significantly impacts the

timing and amount of income recorded in a councils’ financial statements, particularly for grant income

and rates which are paid before the commencement of the rating period.

The Council recognised a $28.3 million adjustment to opening accumulated surplus at 1 July 2019 on

adoption of the new Revenue Standards.

The Council disclosed the impact of adopting the new Revenue Standards in Note 17.

0

5

10

15

20

25

2018 2019 2020R

ati

o (

mo

nth

s)

Year ended 30 June



OLG benchmark > 3 months

6

AASB 16 ‘Leases’

The Council adopted the new accounting standard AASB 16 ‘Leases’ for the first time in their 2019–20

financial statements.

AASB 16 changes the way lessees treat operating leases for financial reporting. With a few

exceptions, operating leases will now be recorded in the Statement of Financial Position as a

right-of-use asset, with a corresponding lease liability.

AASB 16 results in lessees recording more assets and liabilities in the Statement of Financial Position

and changes the timing and pattern of expenses recorded in the Income Statement.

The Council recognised right-of-use assets and lease liabilities of $1.2 million at 1 July 2019 on

adoption of AASB 16.

The Council disclosed the impact of adopting AASB 16 in Note 17.

Council Entities

Blacktown Venue Management Limited (BVM) is a council entity. An unqualified opinion was issued by

the Audit Office on the BVM financial statement for the year ended 30 June 2020.

Legislative compliance

My audit procedures did not identify any instances of non-compliance with legislative requirements or

a material deficiency in the Council’s accounting records or financial statements. The Council’s:

• accounting records were maintained in a manner and form to allow the GPFS to be prepared

and effectively audited

• staff provided all accounting records and information relevant to the audit.

Jan-Michael Perez



cc: Kerry Robinson OAM, Chief Executive Officer

Stephen Horne, Chair of Audit, Risk and Improvement Committee

Jim Betts, Secretary of the Department of Planning, Industry and Environment

Blacktown City Council and its subsidiarySPECIAL PURPOSE FINANCIAL STATEMENTSfor the year ended 30 June 2020

§Cover§


§MainTOC§

Contents Page

Statement by Councillors & Management

Special Purpose Financial Statements

Income Statement – Land Developments Income Statement – Deregulated Approvals Income Statement – Commercial Waste Income Statement – Property Management Income Statement – Blacktown Venue management

Statement of Financial Position – Land Developments Statement of Financial Position – Deregulated Approvals Statement of Financial Position – Commercial Waste Statement of Financial Position – Property Management Statement of Financial Position – Blacktown Venue management

Note 1 – Significant Accounting Policies

Auditor's Report on Special Purpose Financial Statements

i. These Special Purpose Financial Statements have been prepared for the use by both Council and the Office of LocalGovernment in fulfilling their requirements under National Competition Policy.

ii. The principle of competitive neutrality is based on the concept of a ‘level playing field’ between persons/entities competingin a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, state or local, should operate withoutnet competitive advantages over other businesses as a result of their public ownership.

iii. For Council, the principle of competitive neutrality and public reporting applies only to declared business activities.

These include (a) those activities classified by the Australian Bureau of Statistics as business activities being watersupply, sewerage services, abattoirs, gas production and reticulation, and (b) those activities with a turnover of morethan $2 million that Council has formally declared as a business activity (defined as Category 1 activities.

iv. In preparing these financial statements for Council’s self-classified Category 1 businesses and ABS-defined activities,councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax-equivalent regimepayments and debt guarantee fees (where the business benefits from Council's borrowing position by comparison withcommercial rates).

Background


Special Purpose Financial Statementsfor the year ended 30 June 2020

Page 2 of 17

Special Purpose Financial Statements 2020

3

45678

910111213

14

17


Special Purpose Financial Statementsfor the year ended 30 June 2020

§Note/Subtotal§

2020 2019Category 1 Category 1


§Subnote§

Income from continuing operationsProfit from the sale of assets 24,441 5,252Other income 1,024 1,852Total income from continuing operations 25,465 7,104

Expenses from continuing operationsEmployee benefits and on-costs 309 267Materials and contracts 45 92Calculated taxation equivalents 1,093 1,150Other expenses 16 23Total expenses from continuing operations 1,463 1,532

Surplus (deficit) from continuing operations before capital amounts 24,002 5,572

Surplus (deficit) from continuing operations after capital amounts 24,002 5,572

Surplus (deficit) from all operations before tax 24,002 5,572

Less: corporate taxation equivalent (27.5%) [based on result before capital] (6,601) (1,532)

SURPLUS (DEFICIT) AFTER TAX 17,401 4,040

Plus accumulated surplus 123,009 125,515Plus adjustments for amounts unpaid:– Taxation equivalent payments 1,093 1,150– Corporate taxation equivalent 6,601 1,532Add:Less:– Dividend paid (61,401) (9,228)Closing accumulated surplus 86,703 123,009


Income Statement – Land Developmentsfor the year ended 30 June 2020

Page 4 of 17

Special Purpose Financial Statements 2020Blacktown City Council and its subsidiary

Income Statement – Land Developmentsfor the year ended 30 June 2020

§Note/Subtotal§



§Subnote§

Income from continuing operationsUser charges 2,312 3,109Total income from continuing operations 2,312 3,109

Expenses from continuing operationsEmployee benefits and on-costs 2,520 2,414Materials and contracts 511 540Depreciation, amortisation and impairment 110 107Calculated taxation equivalents 91 85Other expenses 17 28Total expenses from continuing operations 3,249 3,174

Surplus (deficit) from continuing operations before capital amounts (937) (65)

Surplus (deficit) from continuing operations after capital amounts (937) (65)

Surplus (deficit) from all operations before tax (937) (65)

SURPLUS (DEFICIT) AFTER TAX (937) (65)

Plus accumulated surplus 1,170 2,772Plus adjustments for amounts unpaid:– Taxation equivalent payments 91 85Add:– Subsidy paid/contribution to operations 222 (1,622)Less:Closing accumulated surplus 546 1,170

Return on capital % (1,186.1)% (101.6)%Subsidy from Council 938 66


Income Statement – Deregulated Approvalsfor the year ended 30 June 2020

Page 5 of 17


Income Statement – Deregulated Approvalsfor the year ended 30 June 2020

§Note/Subtotal§



§Subnote§

Income from continuing operationsAccess charges 1,255 1,205Interest 9 13Total income from continuing operations 1,264 1,218

Expenses from continuing operationsEmployee benefits and on-costs 154 150Materials and contracts 809 784Depreciation, amortisation and impairment 32 30Other expenses 186 189Total expenses from continuing operations 1,181 1,153

Surplus (deficit) from continuing operations before capital amounts 83 65

Surplus (deficit) from continuing operations after capital amounts 83 65

Surplus (deficit) from all operations before tax 83 65

Less: corporate taxation equivalent (27.5%) [based on result before capital] (23) (18)

SURPLUS (DEFICIT) AFTER TAX 60 47

Plus accumulated surplus 764 643Plus adjustments for amounts unpaid:– Corporate taxation equivalent 23 18Add:– Subsidy paid/contribution to operations (66) 56Closing accumulated surplus 781 764

Return on capital % 16.5% 12.6%


Income Statement – Commercial Wastefor the year ended 30 June 2020

Page 6 of 17


Income Statement – Commercial Wastefor the year ended 30 June 2020

§Note/Subtotal§



§Subnote§

Income from continuing operationsUser charges 6,150 6,848Fair value revaluation profit - investment properties 100,504 3,078Total income from continuing operations 106,654 9,926

Expenses from continuing operationsEmployee benefits and on-costs 1,572 1,513Materials and contracts 2,968 3,730Depreciation, amortisation and impairment 986 715Calculated taxation equivalents 3,631 1,582Other expenses 1,000 1,162Total expenses from continuing operations 10,157 8,702

Surplus (deficit) from continuing operations before capital amounts 96,497 1,224

Surplus (deficit) from continuing operations after capital amounts 96,497 1,224

Surplus (deficit) from all operations before tax 96,497 1,224

Less: corporate taxation equivalent (27.5%) [based on result before capital] (26,537) (337)

SURPLUS (DEFICIT) AFTER TAX 69,960 887

Plus accumulated surplus 36,740 33,566Plus adjustments for amounts unpaid:– Taxation equivalent payments 3,631 1,582– Corporate taxation equivalent 26,537 337Add:– Subsidy paid/contribution to operations 2,105 368Less:Closing accumulated surplus 138,973 36,740

Return on capital % 167.1% 2.1%


Income Statement – Property Managementfor the year ended 30 June 2020

Page 7 of 17


Income Statement – Property Managementfor the year ended 30 June 2020

§Note/Subtotal§



§Subnote§

Income from continuing operationsUser charges 10,003 12,650Interest 18 37Grants and contributions provided for non-capital purposes 5 4Total income from continuing operations 10,026 12,691

Expenses from continuing operationsEmployee benefits and on-costs 13,320 12,932Materials and contracts 5,887 6,332Calculated taxation equivalents 677 658Other expenses 685 458Total expenses from continuing operations 20,569 20,380

Surplus (deficit) from continuing operations before capital amounts (10,543) (7,689)

Surplus (deficit) from continuing operations after capital amounts (10,543) (7,689)

Surplus (deficit) from all operations before tax (10,543) (7,689)

Less: corporate taxation equivalent (27.5%) [based on result before capital] – –

SURPLUS (DEFICIT) AFTER TAX (10,543) (7,689)

Plus accumulated surplus 1,626 761Plus/less: prior period adjustments (355) –Plus adjustments for amounts unpaid:– Taxation equivalent payments 677 658Add:– Subsidy paid/contribution to operations 10,439 7,896Closing accumulated surplus 1,844 1,626


Income Statement – Blacktown Venue managementfor the year ended 30 June 2020

Page 8 of 17


Income Statement – Blacktown Venue managementfor the year ended 30 June 2020

§Note/Subtotal§



§Subnote§

ASSETSCurrent assetsCash and cash equivalents 31,188 64,130Inventories 10,414 19,214Total current assets 41,602 83,344

Non-current assetsInventories 45,101 39,665Total non-current assets 45,101 39,665

TOTAL ASSETS 86,703 123,009

NET ASSETS 86,703 123,009

EQUITYAccumulated surplus 86,703 123,009

TOTAL EQUITY 86,703 123,009


Statement of Financial Position – Land Developmentsas at 30 June 2020

Page 9 of 17


Statement of Financial Position – Land Developmentsas at 30 June 2020

§Note/Subtotal§



§Subnote§

ASSETSCurrent assetsCash and cash equivalents 1,902 2,461Total current assets 1,902 2,461

Non-current assetsInfrastructure, property, plant and equipment 79 64Total non-current assets 79 64


LIABILITIESCurrent liabilitiesPayables 28 9Provisions 734 671Total current liabilities 762 680

Non-current liabilitiesProvisions 673 675Total non-current liabilities 673 675

TOTAL LIABILITIES 1,435 1,355

NET ASSETS 546 1,170

EQUITYAccumulated surplus 546 1,170

TOTAL EQUITY 546 1,170


Statement of Financial Position – Deregulated Approvalsas at 30 June 2020

Page 10 of 17


Statement of Financial Position – Deregulated Approvalsas at 30 June 2020

§Note/Subtotal§



§Subnote§

ASSETSCurrent assetsInvestments 564 466Receivables 61 55Total current assets 625 521

Non-current assetsInfrastructure, property, plant and equipment 503 514Total non-current assets 503 514



TOTAL LIABILITIES 108 54

NET ASSETS 1,020 981

EQUITYAccumulated surplus 781 764Revaluation reserves 239 217

TOTAL EQUITY 1,020 981


Statement of Financial Position – Commercial Wasteas at 30 June 2020

Page 11 of 17


Statement of Financial Position – Commercial Wasteas at 30 June 2020

§Note/Subtotal§



§Subnote§

ASSETSCurrent assetsReceivables 372 410Total current assets 372 410

Non-current assetsInfrastructure, property, plant and equipment 57,752 58,007Investment property 181,216 78,688Total non-current assets 238,968 136,695

TOTAL ASSETS 239,340 137,105


TOTAL LIABILITIES 140 138

NET ASSETS 239,200 136,967

EQUITYAccumulated surplus 138,973 36,740Revaluation reserves 100,227 100,227

TOTAL EQUITY 239,200 136,967


Statement of Financial Position – Property Managementas at 30 June 2020

Page 12 of 17


Statement of Financial Position – Property Managementas at 30 June 2020

§Note/Subtotal§



§Subnote§

ASSETSCurrent assetsCash and cash equivalents 2,855 2,499Receivables 228 230Total current assets 3,083 2,729


LIABILITIESCurrent liabilitiesPayables 1,239 1,103Total current liabilities 1,239 1,103

TOTAL LIABILITIES 1,239 1,103

NET ASSETS 1,844 1,626

EQUITYRetained earnings 1,844 1,626

TOTAL EQUITY 1,844 1,626


Statement of Financial Position – Blacktown Venue managementas at 30 June 2020

Page 13 of 17


Statement of Financial Position – Blacktown Venue managementas at 30 June 2020

§Note/Subtotal§

A statement summarising the supplemental accounting policies adopted in the preparation of the Special Purpose FinancialStatements (SPFS) for National Competition Policy (NCP) reporting purposes follows.

These financial statements are SPFS prepared for use by Council and the Office of Local Government. For the purposes ofthese statements, the Council is a non-reporting not-for-profit entity.

The figures presented in these Special Purpose Financial Statements have been prepared in accordance with the recognitionand measurement criteria of relevant Australian Accounting Standards, other authoritative pronouncements of the AustralianAccounting Standards Board (AASB) and Australian Accounting Interpretations.

The disclosures in these Special Purpose Financial Statements have been prepared in accordance with the Local GovernmentAct 2093 (NSW), the Local Government (General) Regulation 2005, and the Local Government Code of Accounting Practiceand Financial Reporting.

The statements are prepared on an accruals basis. They are based on historic costs and do not take into account changingmoney values or, except where specifically stated, current values of non-current assets. Certain taxes and other costs,appropriately described, have been imputed for the purposes of the National Competition Policy.

The Statement of Financial Position includes notional assets/liabilities receivable from/payable to Council's general fund. Thesebalances reflect a notional intra-entity funding arrangement with the declared business activities.

Council has adopted the principle of ‘competitive neutrality’ in its business activities as part of the National Competition Policywhich is being applied throughout Australia at all levels of government.

National Competition Policy

The framework for its application is set out in the June 1996 NSW government policy statement titled 'Application of NationalCompetition Policy to Local Government'.

The Pricing and Costing for Council Businesses, A Guide to Competitive Neutrality issued by the Office of Local Governmentin July 1997 has also been adopted.

The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standardfor disclosure requirements.

These disclosures are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents, Councilsubsidies, return on investments (rate of return), and dividends paid.

In accordance with Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality, Council has declared thatthe following are to be considered as business activities:

Declared business activities

Category 1

a. Land DevelopmentThe development and marketing of residential and commercial land throughout the City

b. Deregulated ApprovalsThe provision of Contestable Development Services relating to the approval and inspection of building and engineering works

c. Blacktown Venue ManagementBlacktown Venue Management principle activity consists of operational management and development of BlacktownInternational Sportspark Sydney and, since July 2015, Blacktown Aquatic Centre, Blacktown Leisure Centre Stanhope, CharlieLowles Leisure Centre Emerton, Riverstone Swim Centre and Mount Druitt pool.Blacktown Venue Management Limted is a fully owned subsidiary of Council and has previously not been reported as abusiness activity. Based on advice received by Office of Local Government (OLG) during 2018/19 financial year BlacktownVenue Management Limited is now included as a bsuiness activity in the special purpose statements.



Notes to the Special Purpose Financial Statementsfor the year ended 30 June 2020

Note 1. Significant Accounting Policies

Page 14 of 17



Note 1. Significant Accounting Policies

Category 2

a. Commercial WasteThe provision of waste removal services to the commercial sections of the City

b. Property ManagementThe protection of Council’s commercial and residential assets and maximisation of returns from Council’s lease portfolio

Amounts shown in the financial statements are in Australian dollars and rounded to the nearest one thousand dollars.

Monetary amounts

Council is liable to pay various taxes and financial duties. Where this is the case, they are disclosed as a cost of operationsjust like all other costs.

(i) Taxation equivalent charges

However, where Council does not pay some taxes which are generally paid by private sector businesses, such as incometax, these equivalent tax payments have been applied to all Council-nominated business activities and are reflected in SpecialPurpose Finanncial Statements.

For the purposes of disclosing comparative information relevant to the private sector equivalent, the following taxationequivalents have been applied to all Council-nominated business activities (this does not include Council’s non-businessactivities):

Notional rate applied (%)

Corporate income tax rate – 27.5%

Land tax – the first $692,000 of combined land values attracts 0%. For the combined land values in excess of $692,001 upto $4,231,000 the rate is 1.6% + $100. For the remaining combined land value that exceeds $4,231,000 a premium marginalrate of 2.0% applies.

Payroll tax – 5.45% on the value of taxable salaries and wages in excess of $850,000.

An income tax equivalent has been applied on the profits of the business activities.

Income tax

Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be taken into account in termsof assessing the rate of return required on capital invested.

Accordingly, the return on capital invested is set at a pre-tax level - gain/(loss) from ordinary activities before capital amounts,as would be applied by a private sector competitor. That is, it should include a provision equivalent to the corporate incometax rate, currently 27.5%.

Income tax is only applied where a gain/ (loss) from ordinary activities before capital amounts has been achieved.

Since the taxation equivalent is notional – that is, it is payable to Council as the ‘owner’ of business operations - it representsan internal payment and has no effect on the operations of the Council. Accordingly, there is no need for disclosure of internalcharges in the SPFS.

The rate applied of 27.5% is/is not the equivalent company tax rate prevalent at reporting date. No adjustments have beenmade for variations that have occurred during the year.

A calculation of the equivalent rates and charges payable on all category 1 businesses has been applied to all land assetsowned or exclusively used by the business activity.

Local government rates and charges




Note 1. Significant Accounting Policies (continued)

Page 15 of 17




Loan and debt guarantee feesThe debt guarantee fee is designed to ensure that council business activities face ‘true’ commercial borrowing costs in linewith private sector competitors.

In order to calculate a debt guarantee fee, Council has determined what the differential borrowing rate would have beenbetween the commercial rate and Council’s borrowing rate for its business activities.

Government policy requires that subsidies provided to customers, and the funding of those subsidies, must be explicitlydisclosed.

(ii) Subsidies

Subsidies occur when Council provides services on a less-than-cost-recovery basis. This option is exercised on a range ofservices in order for Council to meet its community service obligations.

Accordingly, ‘subsidies disclosed’ (in relation to National Competition Policy) represents the difference between revenuegenerated from ‘rate of return’ pricing and revenue generated from prices set by Council in any given financial year.

The overall effect of subsidies is contained within the Income Statement of each reported business activity.

The NCP policy statement requires that councils with Category 1 businesses ‘would be expected to generate a return on capitalfunds employed that is comparable to rates of return for private businesses operating in a similar field’.

(iii) Return on investments (rate of return)

Such funds are subsequently available for meeting commitments or financing future investment strategies.

The actual rate of return achieved by each business activity is disclosed at the foot of each respective Income Statement.

The rate of return is calculated as follows:

Operating result before capital income + interest expense

Written down value of I,PP&E as at 30 June

As a minimum, business activities should generate a return equal to the Commonwealth 10 year bond rate which is 0.88%at 30/6/20.

Council is not required to pay dividends to either itself (as owner of a range of businesses) or to any external entities.

(iv) Dividends




Page 16 of 17





Report on the special purpose financial statements


To the Councillors of the Blacktown City Council

Opinion

I have audited the accompanying special purpose financial statements (the financial statements) of

Blacktown City Council’s (the Council) Declared Business Activities, which comprise the Statement by

Councillors and management, the Income Statement of each Declared Business Activity for the year

ended 30 June 2020, the Statement of Financial Position of each Declared Business Activity as at 30

June 2020 and Note 1 Significant accounting policies for the Business Activities declared by Council.

The Declared Business Activities of the Council are:

• land developments

• deregulated approvals

• commercial waste

• property management

• Blacktown Venue Management.

In my opinion, the financial statements present fairly, in all material respects, the financial position of

the Council’s declared Business Activities as at 30 June 2020, and their financial performance for the

year then ended, in accordance with the Australian Accounting Standards described in Note 1 and the

Local Government Code of Accounting Practice and Financial Reporting – update number 28 (LG

Code).


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.









Auditor-General

• mandating the Auditor-General as the auditor of councils


I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, I draw attention to Note 1 to the financial statements which describes

the basis of accounting. The financial statements have been prepared for the purpose of fulfilling the

Council’s financial reporting responsibilities under the LG Code. As a result, the financial statements

may not be suitable for another purpose.

Other Information


the financial statements and my Independent Auditor’s Report thereon. The Councillors are

responsible for the other information. At the date of this Independent Auditor’s Report, the other

information I have received comprise the general purpose financial statements and Special Schedules

(the Schedules).

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and Special Schedule ‘Permissible income for general rates’.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.




The Councillors’ Responsibilities for the Financial Statements

The Councillors are responsible for the preparation and fair presentation of the financial statements

and for determining that the accounting policies, described in Note 1 to the financial statements, are

appropriate to meet the requirements in the LG Code. The Councillors’ responsibility also includes

such internal control as the Councillors determine is necessary to enable the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, the Councillors are responsible for assessing the Council’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting.

Auditor’s Responsibilities for the Audit of the Financial Statements


• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error






based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The





• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Jan-Michael Perez



30 October 2020

SYDNEY

Blacktown City Council and its subsidiarySPECIAL SCHEDULESfor the year ended 30 June 2020

§Cover§


Blacktown City Council and its subsidiary Special Schedules 2020

Page 2 of 11

Special Schedules for the year ended 30 June 2020 Contents Page

Special Schedules 1

Special Schedule 1 Net Cost of Services 3

Special Schedule 2 Permissible income for general rates 5

Special Schedule 2 Independent Auditors Report 6

Special Schedule 7 Report on Infrastructure Assets 9

1 Special Schedules are not audited (with the exception of Special Schedule 2). Background

(i) These Special Schedules have been designed to meet the requirements of special purpose users such as:

the NSW Grants Commission

the Australian Bureau of Statistics (ABS)

the NSW Office of Water (NOW)

the Office of Local Government (OLG).

ii) 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

the monitoring of the financial activities of specific services.


Page 3 of 11

Special Schedules 1 for the year ended 30 June 2020


Page 4 of 11



Page 5 of 11



Special Schedule - Permissible income for general rates


To the Councillors of Blacktown City Council

Opinion

I have audited the accompanying Special Schedule – Permissible income for general rates (the

Schedule) of Blacktown City Council (the Council) for the year ending 30 June 2021.

In my opinion, the Schedule is prepared, in all material respects in accordance with the requirements

of the Local Government Code of Accounting Practice and Financial Reporting – update number 28

(LG Code), and is in accordance with the books and records of the Council.


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Schedule’ section of my

report.









Auditor-General

• mandating the Auditor-General as auditor of councils


I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, I draw attention to the special purpose framework used to prepare the

Schedule. The Schedule has been prepared for the purpose of fulfilling the Council’s reporting

obligations under the LG Code. As a result, the Schedule may not be suitable for another purpose.

Other Information


the Schedule and my Independent Auditor’s Report thereon. The Councillors are responsible for the

other information. At the date of this Independent Auditor’s Report, the other information I have

received comprise the general purpose financial statements, special purpose financial statements and

Special Schedule ‘Report on infrastructure assets as at 30 June 2020.

My opinion on the Schedule does not cover the other information. Accordingly, I do not express any

form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and the special purpose financial statements.

In connection with my audit of the Schedule, my responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the Schedule or my

knowledge obtained in the audit, or otherwise appears to be materially misstated.




The Councillors’ Responsibilities for the Schedule

The Councillors are responsible for the preparation of the Schedule in accordance with the LG Code.

The Councillors’ responsibility also includes such internal control as the Councillors determine is

necessary to enable the preparation of the Schedule that is free from material misstatement, whether

due to fraud or error.

In preparing the Schedule, the Councillors are responsible for assessing the Council’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting.

Auditor’s Responsibilities for the Audit of the Schedule


• obtain reasonable assurance whether the Schedule as a whole is free from material

misstatement, whether due to fraud or error






based on the Schedule.

A description of my responsibilities for the audit of the Schedule is located at the Auditing and

Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar8.pdf. The





• about the security and controls over the electronic publication of the audited Schedule on any

website where it may be presented

• about any other information which may have been hyperlinked to/from the Schedule.

Jan-Michael Perez



30 October 2020

SYDNEY


Page 9 of 11


Report on Infrastructure Assets as at 30 June 2020

Estimated cost Estimated cost 2019/20 2019/20 Net carrying Grossto bring assets to bring to the Required Actual amount replacementto satisfactory agreed level of maintenance a maintenance cost (GRC) Assets in condition as a percentage of

standard service set by gross replacement costCouncil 1 2 3 4 5

Buildings Buildings 6,549 6,549 18,811 19,085 337,110 469,377 4% 23% 71% 1% 1%Sub-total 6,549 6,549 18,811 19,085 337,110 469,377 4.0% 23.0% 71.0% 1.0% 1.0%

Other Land Improvements & Parks 3,773 3,773 23,829 23,790 142,796 225,718 39% 52% 8% 1% 0%structures Sub-total 3,773 3,773 23,829 23,790 142,796 225,718 39.0% 52.0% 8.0% 1.0% 0.0%

Roads Sealed roads 35,305 35,305 11,103 10,907 1,248,118 1,857,175 28% 52% 18% 1% 1%Unsealed roads 0 0 1,061 1,060 2,505 2,697 0% 94% 0% 0% 6%Bridges 0 0 56 40 61,436 73,911 30% 66% 3% 1% 0%Footpaths 2,088 2,088 4,609 5,207 147,968 206,903 12% 8% 80% 0% 0%Pathways 712 712 11 2 11,080 16,039 5% 10% 84% 1% 0%Carpark 711 711 23 15 37,449 45,659 16% 20% 63% 1% 0%Sub-total 38,815 38,815 16,863 17,231 1,508,556 2,202,384 0.3% 0.4% 1.3% 0.0% 0.0%

Stormwater Stormwater drainage 740 740 3,507 3,770 653,070 918,023 45% 52% 3% 0% 0%drainage Sub-total 740 740 3,507 3,770 653,070 918,023 45.0% 52.0% 3.0% 0.0% 0.0%

TOTAL - ALL ASSETS 49,877 49,877 63,010 63,876 2,641,532 3,815,501 28.7% 45.8% 24.2% 0.7% 0.6%Notes:

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

Infrastructure asset condition assessment ‘key’

1 Excellent/very good No work required (normal maintenance)2 Good Only minor maintenance work required3 Satisfactory Maintenance work required4 Poor Renewal required5 Very poor Urgent renewal/upgrading required


Page 10 of 11

Amounts Indicator Prior periods Benchmark

$ '000 2020 2020 2019 2018

Infrastructure asset performance indicators (consolidated) * Buildings and infrastructure renewals ratio

1

Asset renewals

2

40,490 71.40% 63.17% 63.94% >=100.00%

Depreciation, amortisation and impairment

56,707

Infrastructure backlog ratio 1 1

Estimated cost to bring assets to a satisfactory

standard 49,877 1.89% 2.25% 2.18% <2.00%

Net carrying amount of infrastructure assets 2,641,532

Infrastructure backlog ratio ‐ Gross Estimated cost to bring assets to a satisfactory standard 49,877 1.31% 1.41% 1.45% Gross replacement cost 3,815,501

Asset maintenance ratio Actual asset maintenance 63,876 101.04% 97.20% 99.57% 100.00%

Required asset maintenance 63,221

Cost to bring assets to agreed service level Estimated cost to bring assets to an agreed service level set by Council 49,877 1.31% 1.41% 1.45% >0.00%

Gross replacement cost 3,815,501

(*) All asset performance indicators are calculated using classes identified in the previous table. (1) Includes Work In Progress (WIP) (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.


Page 11 of 11

Asset maintenance ratio

Benchmark: 100% Ratio achieves benchmark


Cost to bring assets to agreed service level

Benchmark: >0.00% Ratio achieves benchmark


18/19 ratio 1.31%

This ratio provides a snapshot of the proportion of outstanding renewal works compared to the total value of assets under Council's

care and stewardship.

With increase funding for renewal and maintenance, the cost to bring assets to agreed service level has been reducing over the past three financial years in line with Asset management plans.

Cost to bring assets to agreed service level

Commentary on result

Asset maintenance ratio


18/19 ratio 101.04%

Compares actual vs. required annual asset

maintenance. A ratio above 1.0 indicates Council is

investing enough funds to stop the infrastructure

backlog growing.

Council's asset maintenance is slightly above the industry benchmark of 100%

99.57% 97.20% 101.04%

0%

25%

50%

75%

100%

125%

150%

2018 2019 2020

1.45% 1.41%1.31%

0.0%

0.5%

1.0%

1.5%

2.0%

2018 2019 2020

Buildings and infrastructure renewals ratio

Benchmark: >=100.00% Ratio achieves benchmark


Infrastructure backlog ratio

Benchmark: <2.00% Ratio achieves benchmark


1.89%

This ratio shows what proportion the backlog is

against the total value of a Council’s infrastructure.

Council has continued to increase funding for renewal and maintenance. Council has been able to meet the industry benchmark of below 2%.

Infrastructure backlog ratio


18/19 ratio


71.40%

Buildings and infrastructure renewals

ratio

To assess the rate at which these assets are being

renewed relative to the rate at which they are

depreciating.

Council continues to increase its asset renewal funding. The increase in this ratio is due to funding from the Federal Government on Roads to Recovery projects. Council assets are being managed in accordance with Asset Management Plans.

18/19 ratio

63.94% 63.17%71.40%

0%

25%

50%

75%

100%

125%

2018 2019 2020

2.18% 2.25%1.89%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2018 2019 2020

Documents

Annual Financial Statements - Consolidated Financial