Annual Report 2006/07 (3841 kb) - City of Playford - SA.Gov.au

Annual Report2006/07

ContentsWelcome 1Message from Mayor and CEO 2Financial Performance 3Highlights of 2006/07 5Elected Members and Ward Map 11Council Governance 12Organisational Structure 22Strategic Planning 23Annual Performance Statement 25Organisational Excellence 30- Community Engagement 30- Awards 30Organisational Accountability 31- Auditor’s Payment 31- Workforce Profile 31- Freedom of Information 35- Ombudsman Report 36- Corporate Governance Documents andPolicies38- Procurement Services 40- Community Land Management Plans 40Appendices 41- 1. Annual Audited Financial Statements- 2. Rating Policy- 3. Subsidiary Annual Reports- 3.1 Gawler River Flood ManagementAuthority (GRFMA)- 3.2 Northern Adelaide WasteManagement Authority (NAWMA)- 3.3 Waterproofing Northern AdelaideRegional Subsidiary (WNARS)

Welcome to the City of Playford Annual Report for 2006/07Communicating Council’s activities in an open and transparent way is one of our highest priorities. We ensurethat information access and distribution is timely, relevant, respectful, and acknowledges the diversity ofPlayford's community.This year we have developed an abridged version of the annual report which will contain the informationrequired to satisfy our legislative obligations. It will also include some additional information which Councilconsiders important to have as a historical record of the past year. This report will be accompanied by acommunity focused supplement report which will tell the story of key highlights from 2006/07 through the eyesof the community. This supplement will be distributed to the community via Council’s Community Newspaper inJanuary 2008.General Council elections were held during the reporting period (November 2006), with a new Council electedfor a four year term. This Council listens to the community and works together toward achieving the communityvision and goals. City of Playford is committed to engaging with the community in setting priorities for actionand contributing to decision making that affects the community. The Annual Report is our principle way of beingaccountable to the community; it informs our residents, ratepayers, stakeholders, staff, government agenciesand any other interested parties of the projects and achievements against our strategic and financial plans.1

Message from the Mayor and CEOIn May 2007, Council celebrated 10 years as the City of Playford. This milestone provided us with anopportunity to reflect on the changes we have seen within our community. The City has grown significantly - wehave expanded our horizons and welcomed an increase in people choosing to live in our city because of ourvibrant regional and district centres and investment in rural areas through improved infrastructure.To ensure we continue developing in this manner, Council has worked together with the community to setpriorities for future action. The development of the Playford Community Plan articulates a shared vision andgoals for the community. The plan is underpinned by a commitment made across the three tiers of governmentto achieve our vision of real and measurable outcomes for the community.In the last financial year, Council implemented an investment strategy based on its goals of CommunityWellbeing, Economic Prosperity and Environmental Care. This expenditure is demonstrated through the state ofthe art Northern Sound System facility, a commitment to the redevelopment of the Aquadome, Roads toRecovery initiative, a strong focus on community engagement and investment in roads and stormwaterinfrastructure in our rural areas.This annual report provides an overview of how the City of Playford has managed its responsibilities andresources for its community over the last financial year and offers an insight into what lies ahead for the future.We would like to thank the community, dedicated elected members, staff and hundreds of volunteers for theirongoing commitment and contribution to the development of our City.Martin LindsellMayorTim JacksonChief Executive Officer2

Financial PerformanceThe 2007 Income Statement reports an operating surplus before capital amounts of $521k representing animprovement of $2.9m over the original budgeted deficit of ($2.4m). After capital amounts a “Net Surplus” of$11.3m is reported this is an improvement of $1.1m on the Net Surplus reported in 2006.Summarised Income StatementIncome 49,401 46,379Expenses 50,627 47,414Operating Surplus (deficit) before Capital Amounts & Significant Item (1,226) (1,035)2007$Significant Item 1,747Operating Surplus (deficit) before Capital Amounts 521 (1,035)Capital Amounts 10,803 11,235Net Surplus/(Deficit) 11,324 10,2002006$Care must be taken in interpreting this Operating Surplus before Capital Amounts of $521k, in terms of what itmeans for Councils on-going financial sustainability.This result is primarily due to a large “Significant Item” being our Share of Profit - Gawler River FloodManagement Authority (GRFMA) for 2007. This substantial “profit” generated by GRFMA is not cash profit butis an accounting entry to take up our share of the change in net assets of GRFMA. Without this item, Councilwould have recorded an Operating Deficit before Capital Amounts of $1.2m.Further to this Operating Income of $49,401 includes $1.9m for items that would previously have beenclassified as Capital Amounts. This new format for reporting of income has been brought about by changes tothe required financial reporting format for Local Government in South Australia.3

The graph below shows the actual Operating Surplus (Deficit) for the City of Playford since amalgamation inboth the old and new reporting format. The 2007/08 value is based on the current revised budget.Dollars $000'sOPERATING SURPLUS (DEFICIT)New FormatTargetOld Format97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/073000200010000-1000-2000-3000-4000-5000-6000-7000-8000-9000-10000Balance Sheet (Appendix 1, page 4)Council’s Total Equity or Net Assets have increased from $341.4m to $370.4m due to a combination of theoperating result after capital revenues above ($11.3m) and a revaluation upwards of Infrastructure assets of$17.7m.Summarised Balance Sheet2007$2006$Current Assets 10,125 9,117Non-Current Assets 411,314 376,645Total Assets 421,439 385,762Current Liabilities 20,754 17,643Non-Current Liabilities 30,308 26,753Total Liabilities 51,062 44,396NET ASSETS 370,377 341,366TOTAL EQUITY 370,377 341,3664

Highlights of 2006/07The following section includes a snapshot of highlights from across the three goal areas of CommunityWellbeing, Economic Prosperity and Environmental Care, as well as highlights from a corporate perspective.Community WellbeingCity of Playford is committed to improving and supporting the wellbeing, health and safety of thePlayford community. In 2006/07, Council’s major community wellbeing initiatives included thedevelopment of the state of the art Northern Sound System facility, Playford North communityengagement initiatives such as the Peachey Trailer and Charette design process and a $15.6mcommitment to the redevelopment of the Aquadome.Marni Waeindi – Indigenous Transition Pathways CentreMarni Waeindi engages Aboriginal young people through a range of activities tailored to meaningful learningexperiences while developing linkages to employment in the future. The Vocational Education and Training inSchools Introduction to Hair and Beauty Course is one of Marni Waeindi’s successful engagement programswhich are offered at Elizabeth TAFE. 10 Indigenous students from the Playford region attended a course forone day a week for 10 weeks.The program aims to prepare the students for a future in hairdressing by providing them with the theoretical andpractical skills, abilities and hands on experience. The course covers Certificate I and II in Hair and Beauty andoffers transition opportunities for a variety of options such as Advanced Level, Pre Vocational Full Time Study,School Based Apprenticeships, Hairdressing Apprenticeships and/or employment.Liberty SwingA Liberty Swing and other new equipment installed at Fremont Park in November 2006 have made the parkmore accessible for a diverse range of community users, including people with a disability.The Liberty Swing is designed specifically for use by people in wheelchairs and enables them, for the first time,to enjoy and participate in the experience of using a swing. Along with the swing, other accessible playgroundequipment has also been installed in the park to provide additional opportunities for children in wheelchairs toplay inclusively with other children. Fremont Park is one of the few in the state to have a Liberty Swing andamong the leaders in installing accessible play equipment.The collaboration between the Community Services and Parks teams has achieved great outcomes for childrenwith a disability who are now able to participate fully with their families and peers in activities at Fremont Park,which has become a great place for the whole community5

Northern Sound System (NSS)Council’s youth focused community music centre opened its doors for business in February 2007. Four eventswere held between March and June as well as several one-off workshops. The rehearsal room has been verypopular. Recordings have also been popular if not exceeded expectations with on average recordingsoccurring twice a week for demos and CDs!A Reference Group was formed in May 2006 and has continued to meet monthly throughout the planning andimplementation phase. The Reference Group is made up of both young and other community members. Theirinput has been extremely valuable as it guided some of the fit-out design issues. By the end of June 2007, 28community members signed up as volunteers. Volunteers undertake daily tasks such as band liaison,mentoring young bands, operating the lighting desk, organising events, working behind the bar and in thekitchen and reception duties. Volunteers have been invaluable in the implementation and ongoing operations ofNSS.“Books R4 Babies 2” - An Early Childhood Literacy Program and Family Reading CentreBooks R4 Babies 2 is an exciting and innovative Early Childhood Literacy Program developed in collaborationbetween the City of Playford Library Service, City of Salisbury Library Service and the University of SouthAustralia.Following the pilot program, which ran in 2006, this highly successful program continued in 2007 rolling out to24 sites from the initial 19 in 2006. Planning is currently underway between the Library Services and theUniversity of South Australia to ensure sustainability and development of the program for the next three years.A further outcome of the program has been the development of the Family Reading Centres which are locatedat the Civic Centre Library, Elizabeth and the Len Beadell Library, Salisbury. Situated in the Children’s area ofeach library, the Family Reading Centres bring together a broad cross section of resources to support parentsin their parenting role. The collections include books, DVDs, brochures, fact sheets, and individual copies of theLapsit Outreach Literacy Program folders.Economic ProsperityCouncil is committed to improving the economic prosperity of the region through forming strongrelationships with government, business and education and training sectors. In 2006/07 majoreconomic initiatives included the work on the Elizabeth Regional Activity Centre, ensuring that it retainsits position as the north’s most significant retail, commercial, community, educational and regional huband the strong investment in the rural infrastructure program.2007 Regional Prosperity ConferenceThe 2007 Regional Prosperity Conference held at the Playford Civic Centre on Wednesday 27 June was anoutstanding success with a 57% increase in participation. Support from sponsors was the key to allowingNorthern Adelaide Business Enterprise Centre to advance some of the constructive ideas from last year’sconference. These changes included 4 bus tours (94 people toured the region), four workshops (115 peopleattended four very diverse topics) and 12 companies made Fast Presentations (12 minutes each).6

Three Key Note speakers delivered strong presentations on Lean Business Procedures during the morningsession and another lunch time Key Note address featured marketing and style in business. Over 250 peopleattended these prime addresses in the Shedley Theatre. Our Trade Exhibit displayed the goods and services of38 traders and filled the function room at the Civic Centre.The support of the City of Playford (as the major sponsor) was accompanied by support from ANZ Bank,Mission Australia, Adelaide Plains Marketing, Salisbury Export Centre, Inner West & Inner Southern BusinessEnterprise Centres as well as Centre for Innovation and Business Dynamics. Three Business Awards werepresented to local businesses in the categories of Business of the Year, Best New Business and YoungBusiness Owner of the Year.Elizabeth Regional CentreCouncil has taken a proactive approach to the development of the Regional Centre since 2000. Key outcomesfrom 2006/07 include:• A Master Plan for Fremont Park that will guide the future development of this significant regional reserve• Council commitment to the redevelopment of the Aquadome• Upgrading of the pavement and resealing of the road on Elizabeth Way• Significant funding sourced from both local and state government to fund a strategic development plan forGreater Edinburgh Parks• Development of the Northern Sound System.Annual Civil Works ProgramIn 2006/07, annual programs were developed for the upgrade, maintenance and/or replacement of road andfootpath assets. A number of capital projects were included in the City Plan to fund this work. Additionally,Council developed a program to create new road assets (sealing of current unsealed roads) and new footpathassets (as required in new land divisions). Highlights include:• Road Reseal and Rehabilitation Program• Rural Road Construction Program• Craigmore Road Stage 3• Curtis Road Roundabout – (Intersection of Stebonheath & Curtis Roads)• Footpath Upgrade Programme.7

Environmental CareCouncil is committed to securing a sustainable future for Playford’s community and environmentthrough leadership, innovation, collaboration and engagement. In 2006/07, major environmentalinitiatives included the Waterproofing Playford Stormwater Harvesting and Recycling Project in AdamsCreek, significant revegetation initiatives carried out on both Council and private land and the PlayfordNorth Urban Regeneration Project which aims to achieve significantly improved economic, social andenvironmental sustainability in an area of high social and economic disadvantage.Green CorpsThis project has given young people a training opportunity and life changing experience to break generationalunemployment and place young people in work. The Green Corps team have been involved in the followingactivities this year:• Vegetation survey of the Boral site section of the Hills Face Vegetation Corridor• Control of Wild Olive and Coolatai Grass (two of Adelaide’s most serious weed threats)• Vegetation monitoring for baseline data• Tube stock planting and direct seeding of reserves• Collection and processing of native plant seed• Replanting and weed control at Roadside Marker System sites• Fencing of endangered indigenous vegetation.Northern Foothills Land Management ProjectThis project seeks to empower and educate landholders in the project area by subsidising the owner to improvetheir properties for land management benefits. Activities include revegetation to reduce the risks associatedwith salinity, buffering remnant stands of vegetation and fencing to protect remnant vegetation and watercourses from stock. The City of Playford hosts this project, which is fully funded by the Mount Lofty RangesIntegrated Resources Management Group and the Northern Adelaide Barossa Catchment Water ManagementBoard.The Waterproofing Playford Stormwater Harvesting and Recycling projectThe Waterproofing Playford Stormwater Harvesting and Recycling project is a visionary plan that will implementa sustainable urban water management system which integrates the utilisation of rain water, stormwater andground water. Key project activities in 2006/07 include:• Prime Minister Howard announced $38m grant to the regional project• Board of regional subsidiary was formed• Integration with Playford North project progressed well with details of the Waterproofing Projectprovided to Land Management Corporation for integration with its work• Design consultant engaged and concept design completed with four options for the Stebonheath Site• Community bores drilling program.8

CorporateCouncil has a strong commitment to strategic planning and corporate management. In 2006/07Council’s major corporate highlights included the election of a new Council, organisationalcommitment to community engagement through the formation of a dedicated community engagementteam and the Playford Partnership.Corporate Intranet SiteAn internal project was instigated by Information Services, People Services and Community Engagement toimplement a corporate intranet site to obtain improved productivity and better access to information acrossCouncil. The vision for the site, in line with the Knowledge Management Strategy, was to provide a single pointof access to information, applications and resources used by staff in the performance of their daily tasks. Thedevelopment of the site was performed through the collaboration of three business units to deliver:• A staff Intranet that enhances corporate process and fosters a sense of staff community• Opportunities for and encouraging partnerships between all major stakeholders• A system that can grow and develop to allow Council to respond to the changing needs of staff• Access for all, utilising the availability of common access PCs at central locations for field and outdoor staff• Easy development of new information by all staff using common software such as MS Word.Staff Relocation to Playford Operations CentreIn 2006, Council brought all operational staff (office and field based) into a single location, the PlayfordOperation Centre. Significant emphasis was placed on involving as many staff as possible in finding ways tomake the new workplace more efficient and more enjoyable. Staff involvement laid the foundation for broadcultural change across the organisation. Cultural change does take time but the following examplesdemonstrate significant operational benefits experienced in 2006/07:• Individual hard copy filing requirements halved, electronic filing now standard• Photocopying and printing equipment costs halved via a centralised utilities area• Paper recycling improved, reduced waste to landfill• Reduced power and water consumption through a four Star Green Building rating• Greater availability of Council’s car pool fleet• Reduction in stationery expenditure• Staff pride in their new facility.Health and Wellbeing Staff InitiativesDuring 2006/07, Council continued to provide Health and Wellbeing, Employee Assistance and Chaplin ServicePrograms for employees. These programs aim to enhance the health and wellbeing of staff, promote familyfriendly work practices and facilitate a secure working environment. Significant initiatives from 2006/07 include:• Weight watchers at work, which assists employees to work towards and maintain healthy eatinghabits. To date, 17% of staff has taken the opportunity to participate in this program. An added bonus tothis program has been the interaction of normally self contained work groups• Walking Groups have been encouraged during lunch-time9

• Breastfeeding facilities have been established in the first aid room and include a suitable chair forbreastfeeding, privacy screen and washing and storage facilities.Community EngagementThe City of Playford has recognised that community engagement is an area of ongoing development andlearning. 2006/07 saw the evolution of the Community Engagement Team, formerly known as Communications,Strategy and Governance.In 2006/07 the Community Engagement Team developed a community newsletter for all residents, businessesand ratepayers in the council area to ensure the entire community was well informed about council activitiesand services. The newspaper also celebrated the wonderful work that the community has been involved in.Several well attended community and civic events were held throughout 2006/07 including:• Australia Day• Anzac Day• Science World Sunday• Citizenship Ceremonies• Tourism Forum• Launch of Adams Creek WetlandThe Playford Partnership group continued to meet throughout the year and worked on developing the revisedPlayford Community Plan to reflect our diverse community’s hopes and desires to establish a positive future forthe area. Several partnership meetings were held throughout 2006/07 and two ‘What’s Happening in PlayfordEvents’ were held for key partners.10

Elected Members and Wards (June 2007)

Council GovernanceCouncil ElectionsGeneral Council elections were held during the reporting period (November 2006), with a new Council electedfor a four year term.Mayor Marilyn Baker and Councillor Shirley Wissell were unsuccessful in retaining their positions in this election.We thank Marilyn and Shirley for their many tireless years of service to the City of Playford (26 and 14 yearsrespectively).Accordingly, in November, we welcomed Mayor Martin Lindsell and Councillor Gay Smallwood-Smith to theElected Member team.Mayor Martin LindsellTerm in office commencedNovember 2006Mayor Marilyn Baker26 years of serviceTerm in office endedNovember 2006Cr Gay Smallwood-SmithTerm in office commencedNovember 2006Cr Shirley Wissell14 years of serviceTerm in office endedNovember 200612

Council and Committee MeetingsCouncil meetings are held in the Council Chambers at:Playford Civic Centre, 10 Playford Boulevard, ElizabethThe City of Playford’s Governance Architecture consists of:Type of MeetingAustralia Day Event CommitteeChief Executive Officer’s PerformanceReview PanelCity of Playford FoundationCommunity & Environment CommitteeCorporate Governance CommitteeOrdinary CouncilCouncil Development Assessment PanelEconomic & Corporate CommitteeElizabeth Regional Centre Strategic AdvisoryCommitteeGovernance Structure Review CommitteeInformal GatheringsNext Generation Buildings CommitteeSpecial CouncilWhen Meetings were HeldFirst Wednesday of each monthAt least twice each year or as business needsrequireAt least quarterlySecond Tuesday of the monthAt least quarterlyFourth Tuesday of the monthThird Monday of the monthSecond Tuesday of the monthAs business needs arise (no meetings of thiscommittee were held during 2006/07)Third Tuesday of the monthAs business needs requireFirst Monday of the monthThird Tuesday of the monthDecisions made by CouncilDecisions made by Council2003/04 2004/05 2005/06 2006/07resolution 119 187 127 134Reports considered andresolved by the CouncilDevelopment AssessmentPanel2003/04 2004/05 2005/06 2006/0744 40 31 2013

Use of Confidential Provisions within the Local Government Act & Development ActUnder the Local Government Act 1999, Committees, Ordinary Council and Special Council Meetings maydiscuss matters of a confidential nature in a closed session. The Development Act provides the direction for theCouncil Development Assessment Panel to exclude the public, where necessary, from Panel meetings.The table below provides an overview of the number of times the public were excluded from Governancemeetings and when documents were maintained in a confidential state.Type of MeetingNumber of times thepublic was excludedfrom attendance atmeetingsNumber of timesdiscussion, reports,minutes and orattachments were keptconfidential for a specifiedperiodOrdinary Council Meetings 14 13Special Council Meetings 5 5Chief Executive Officer’s PerformanceReview Panel2 2Council Development Assessment Panel 1 1Economic and Corporate Committee 1 1Total 23 22The City of Playford close meetings to the public only when matters are of a sensitive nature and fall within oneor more of the confidential test conditions outlined in the Local Government Act or the Development Act for theCouncil Development Assessment Panel.Throughout the year, 83% of Council business was conducted in an open forum enabling the public to be partof the decision-making process and participate in community affairs.The following table outlines the reasons for conducting meetings in a closed session:Local Government Act - Section 90(3)(a) information concerning the personal affairs of a person 5(b) commercial advantage of a group of people with whom the Council isproposing to conduct business2(d) commercial information of a confidential nature 10(h) legal advice 1(i) actual litigation involving the Council or an employee of the Council 4Development Act - Section 56A(12)(v) legal advice 1TOTAL 2314

Elected Members Allowances & BenefitsThe Local Government (Members Allowances and Benefits) Regulations came into operation from 1 January2000, and set the minimum and maximum amounts which a Council could fix annual allowances payable toElected Members.Elected Members received the following allowances for the period July 2006 - November 2006:• Mayor $29,120• Deputy Mayor $9,100• Presiding Members $8,350• Councillors $7,280.On 31 August 2006, amendments to the Local Government (Members Allowances and Benefits) Regulationswere gazetted. These amended regulations came into operation on 13 November 2006, with new maximumallowances for Council Members.At the Council meeting on 21 November 2006, Elected Members agreed to set their annual allowances at themaximum amount, as follows:• Mayor $60,000*• Deputy Mayor $18,750• Presiding Members$18,750• Councillors $15,000These allowances were set for a period of 12 months and will be reviewed in November 2007.* While the Mayor received $60,000, he indicated that he would contribute $35,000 (less the tax payable) of hisallowance toward charitable and community projects.Elected Members are each provided with a combined printer and facsimile machine, laptop computer andmobile telephone to assist them in their Elected Member role.The Mayor has access to a vehicle for Council business and civic duties and also has office space andadministrative support.Elected Members may seek reimbursement for travel and childcare expenses when undertaking Councilbusiness.During 2006/07, some Elected Members received reimbursements in accordance with the Elected MembersSupport Policy. The total amounts are as follows:• Mileage: $738.00• Childcare: $0.0015

Training and development is provided to Elected Members where the training is relevant to the role of theElected Member or linked to the Local Government industry.The following Elected Members undertook specific Training and Development in the following areas during theyear:Elected Member Training / Conference Training ProviderMayor LindsellCr CraigCr DochertyCr FedericoCr GooleyCr Levitt• New Council Members Residential Seminar• Developing Public Speaking Skills for ElectedMembers• Media Training for Council Spokespersons inthe event of an Emergency• Institute of Company Directors NonResidential Course• Confidently Say What You Really Want ToSay• Media Interaction Awareness Course• Confident and Persuasive Presentations• Council Members Residential Seminar• Strategic Planning Seminar• National General Assembly of AustralianLocal Government• Developing Public Speaking Skills for ElectedMembers• Media Training for Council Spokespersons inthe event of an Emergency• Institute of Company Directors NonResidential Course• Development Assessment Panel MemberTraining• National General Assembly of AustralianLocal Government• Council and Committee Meeting Proceduresand Chairing Skills• International Council for Local EnvironmentalInitiatives (ICLEI) Conference• Local Government Association• Local Government Association• Local Government Association• Institute of Company Directors• Professional and ContinuingEducation, University of Adelaide• Local Government Association• Professional and ContinuingEducation, University of Adelaide• Local Government Association• Local Government Association• Australian Local GovernmentAssociation• Local Government Association• Local Government Association• Institute of Company Directors• Local Government Association• Australian Local GovernmentAssociation• Local Government Association• ICLEICr Smallwood-Smith • New Council Members Residential Seminar • Local Government AssociationA full Training and Development Plan for all Elected Members will be implemented in the 2007/08 period.Elected Member Code of Conduct AllegationsNo Code of Conduct allegations were made against Elected Members this year.16

Independent MembersCouncil Development Assessment PanelOn 22 June 2006, the Development (Panels) Assessment Bill 2006 was passed by the State Government. Thenew legislation required each Council to set up Development Assessment Panels (DAP’s) that consist of seven(7) members, and further stipulated that a minimum four (4) members must be independent of Council (that is,not Elected Members or staff) and up to three (3) Elected Members or Council staff. Each Council was notifiedthat the new membership composition of the Panel should be in existence no later than February 2007.At the Council meeting on 27 February 2007, it was agreed to pay the four (4) independent members of theCouncil Development Assessment Panel a sitting fee of $300 per meeting attended, payable upon presentationof a tax invoice.The attendance records of the four (4) independent members are shown below.Independent MemberCouncil DevelopmentAssessment PanelTotal meetings for year 12Ms Ceravolo 3 (4)Ms Matysek 4 (4)Mr Muncey 4 (4)Mr Whimpress 3 (4)The Council Development Assessment Panel comprises seven (7) members in total; the above four (4)independent members and Crs Federico, Ryan and Smallwood-Smith.Representation on External OrganisationsElected Members have been endorsed by Council resolution to represent the City of Playford’s interests on thefollowing external organisations:External OrganisationGawler River Floodplain Management AuthorityLocal Government AssociationLocal Government Finance AuthorityElected Member RepresentationCr Max O’RiellyCr Don Levitt (proxy)Mayor Marilyn Baker (until Nov 2006)Mayor Martin Lindsell (from Nov 2006)Mayor Marilyn Baker (until Nov 2006)Mayor Martin Lindsell (from Nov 2006)17

External OrganisationMurray Darling AssociationNorthern Foothills Land Management AuthorityElected Member RepresentationCr Max O’RiellyCr Don LevittCr Joe FedericoPlayford District Bushfire Prevention CommitteeCity of Playford FoundationPlayford Partnership Elected Members ForumCr Julie Norris (until Nov 2006)Cr Glenn Docherty (from Dec 2006)Cr Coral Gooley (from Dec 2006)Mayor Marilyn Baker (until Nov 2006)Mayor Martin Lindsell (from Nov 2006)Cr Max O’RiellyMayor Marilyn Baker (until Nov 2006)Mayor Martin Lindsell (from Nov 2006)Cr Glenn DochertyPlayford Partnership Executive Mayor Marilyn Baker (until Nov 2006)Playford/South Australian Housing Trust ExecutiveVirginia Horticulture Centre IncorporatedMayor Marilyn Baker (until Nov 2006)Mayor Martin Lindsell (from Nov 2006)Cr Dino MusolinoElected Attendance at MeetingsThe following provides a summary of Elected Members and their participation at Ordinary Council, SpecialCouncil, Committees of Council and Council Development Assessment Panel meetings.NB where the Elected Member was not a member of the Committee for the entire duration of the reportingperiod, the total number of meetings applicable to that Elected Member are featured in brackets adjacent to theactual number of meetings attended.18

Elected MemberTotal meetings foryearOrdinaryCouncilSpecialCouncilMeetingAustralia DayEventCommittee17 16 7ChiefExecutiveOfficer’sPerformanceReview PanelCommunity andEnvironmentCommitteeCouncilDevelopmentAssessmentPanelEconomic andCorporateCommitteeGovernanceStructureReviewCommittee2 7 12 8 8Next GenerationBuildingsCommittee5Mayor Baker 4 (4) 5 (5) * 1 (1) * 5 (5) 4 (4) * 2 (4)Mayor Lindsell 13 (13) 11 (11) 3 (3) 1 (1) 1 (4) 2 (3) * 8 1 (1)Cr Boundy 14 14 * * 4 (4) * 2 (4) * *Cr Cava 16 12 * * 4 (4) 7 (8) 3 (4) * *Cr Craig 15 14 * * 6 * * * *Cr Docherty 16 16 * 1 (1) 7 7 (8) * * *Cr Federico 17 16 * * * 12 8 * *Cr Gooley 15 16 7 * 7 * * * *Cr Hamilton 10 6 * * 2 (3) * 2 (4) 5 *Cr Levitt 17 15 * * * 8 (8) 8 * 5Cr MacMillan 16 13 * 2 * * 7 * 5Cr Musolino 15 10 * 1 (1) * * 6 * *Cr Norris 11 8 * * 3 (3) 8 (8) 0 (4) * *Cr O’Rielly 16 13 * * 3 (3) * 4 (4) * *Cr Ryan 16 16 * * 7 12 * * *Cr Shaw 17 14 * * * * 8 7 *Cr Smallwood-Smith12 (13) 9 (11) * * 4 (4) 4 (4) * * *Cr Wissell 4 (4) 5 (5) 4 (4) * 3 (3) * * * 3 (4)* Elected Member not appointed to the committee and therefore not required to attend.

Electoral RepresentationComparison of Playford Elector Ratios with some other Metropolitan CouncilsCouncilElected Members(including Mayor)ElectorsRatioWest Torrens 15 47,179 1:3145Mitcham 14 51,289 1:3663PLAYFORD 16 51,633 1:3227Marion 13 65,975 1:5075Information derived from the Local Government Association Circular 32.1 dated 7/08/07.A review of the City’s electoral representation was concluded on 27 August 2002 with the new ward boundariescoming into effect at the May 2003 General Council Elections. As appropriate, ward quota ratios weremaintained during this period. Council did not undertake a periodic review of electors and ward distributionsduring 2006/07.Under the current Local Government Act, a review of electoral representation is required to be conducted everyeight years or where it exceeds 10% of quota. The next review is scheduled for the year 2010.Section 28 of the Local Government Act states that a group of at least 20 eligible residents may make asubmission to Council for consideration to:• Alter the boundaries of the Council• Alter the composition of the Council or the representative structure of the Council (including by thecreation, alteration or abolition of wards)• Incorporate within the area of the Council a part of the State that is not within the area of a Council.During the reporting period, the City of Playford did not receive any submissions from eligible residents on thematters listed in Section 28 of the Local Government Act.20

Establishment of Corporate Governance CommitteeOne of the key initiatives from the Local Government Association’s Independent Financial Sustainability Inquirywas the establishment of “Audit Committee’s” by Councils. This requirement was incorporated into anamendment of the Local Government Act 1999 and was required to be in place by 1 July 2007.Council endorsed the Charter for Playford’s inaugural Corporate Governance Committee (Audit Committee) inMay 2007 and appointed 3 independent members and 2 elected members in June 2007.The committee’s primary role is to provide suggestions and recommendations to Council about matters relatedto Corporate Governance. Its terms of reference include review and recommendations in relation to:• Financial Reporting• Internal Controls and Risk Management Systems• Whistle Blowing• Internal Audit• External Audit.The following committee members were appointed by Council in June 2007:• Mayor Martin Lindsell• Cr Glenn Docherty• Mr Phil Plummer• Mr Tony Higginbottom• Mr Martin White.21

Organisation Structure - March 2007

Strategic PlanningThe City of Playford has a strong commitment to strategic planning and corporate management. An integratedframework underpins all of Council’s strategic plans. This framework ensures that there are strong linkagesacross Council departments and across Council’s key strategic focus areas. Council’s essential strategicplanning documents are the:• Playford Plan• Goal Plans• Corporate Management Plan• Long Term Financial Plan• City Plan.Playford PlanThe Playford Plan is Council’s key long-term planning document. This plan is unique in comparison to strategicplans of many other Councils, in that it is a plan for the City and not just for the Council administration itself. Atthe local level, the City of Playford, its business and residential communities and its political representativesfrom all levels of government actively established our strategic direction through this document, the PlayfordPlan.The Playford Plan sets the direction for the City over a 10-year period. The Plan is based around three goals(Community Wellbeing, Economic Prosperity and Environmental Care) with objectives and strategies set foreach of these. The Plan is updated every three years to ensure its continued relevance as external factors(political, social, environmental, economic and technological) and changing community priorities necessitatechanges in strategic direction from time to time.Goal PlansThe Goal Plans have been developed in partnership with business and residential communities. These workingdocuments have a five-year time horizon. They provide a framework of strategies and actions as well as thedetailed background information necessary to achieve the Playford Plan vision. The three goals are:• Community Wellbeing—to improve and support the wellbeing, health and safety of the Playfordcommunity• Economic Prosperity—to improve economic prosperity of the region• Environmental Care—to secure a sustainable future for Playford’s community and environmentthroughleadership innovation, collaboration and engagementCorporate Management PlanThe City of Playford Corporate Management Plan is firmly established around the following objectives:* Organisational Culture * Communication and Decision-making * Financial and Risk Management* Customer Focus * Partnerships23

Strategic Planning Architecture24

Annual Performance Statement 2006/07Council’s long-term focus is to achieve the Playford Plan while remaining financially sustainable. To enable theongoing measurement of progress against delivery of the Playford Plan a statement of annual performancemeasures has been developed.The Annual Performance Statement contains a number of performance measures linked to the three PlayfordPlan Goals of Community Wellbeing, Economic Prosperity and Environmental Care. In addition, a set ofCorporate performance measures linked to the Corporate Management Plan have also been included to ensurethat the Annual Performance Statement covers the full breadth of Council operations.The performance measures contained within the Annual Performance Statement are by definition short-termmeasures which have been developed to track performance against Council’s priorities over the next year inworking towards the achievement of the Playford Plan. Progress is reported quarterly through the QuarterlyCouncil Performance Report and annually through the Annual Report. The Annual Performance Statementalso forms a part of the annual performance review mechanism for Council’s leadership positions.SummaryNo. % Measures19 (56%) Exceeded Target 4 (12%) Met Target 23 (68%) Sub Total - Exceeded/Met Target11 (32%) Did not Meet Target x34 (100%) Total Number of Measures for 2006/0714 measures did not have a target but results sourcedCommunity WellbeingWhile there was excellent attendance at Youth Week events, the target of youth involved in planning activitiesand membership on the Youth Advisory Committee (YAC) was not met. This can be attributed to changes inthe youth team over the last year in terms of new staff, adjustment for the YAC that was impacted by staffchanges and the shift to Northern Sound System facility and increased responsibilities for staffing the centre.However, a comprehensive recruitment drive for new YAC members is planned and integration of the YouthDevelopment Program at NSS is complete.The sale of meal packs has almost doubled over the last year and is a clear indication of the acceptance of thisitem and the contribution it makes to supporting health and wellbeing in the community.25

Community Wellbeing Annual Statement Measures and 2006/07 ResultsPlayfordPlanObjectiveIndicatorMeasureActual Target Target YTD2005/06 2006/07 2007/08 2006/07ResultAgainstTargetYouth Week Attendance 450 400 400 400 Community InvolvementYouth Involved in Organising YouthWeek14 15 15 12 x3.4Youth Advisory Committee Average 12 Average 12 Average 12 Average 8 xChild & Youth LibraryMembershipChild and Youth membership oflibrary (Youth – 17 years and under)71% 68% 70% 79%(14,312members)(15,812members)3.6 Home Assist3.3Sporting/RecreationFacilities andCommunity HealthProvision of social support to olderpeople and people with disabilitiesNumber of attendances toAquadomeNo. of attendances to North LakesGolf Course370 Clients 400 Clients 750 Clients 257 Clients x9,993 hours 7,500 Hours8,000Services12,076 Hours 148,892 150,000 150,000 162,599 26,904 29,000 30,000 25,172 x3.5 Community Involvement No. of Volunteers 425 480 500 480 3.1 Graffiti Graffiti Tag Removals 36,526 38,000 36,000 39,340 3.6 Health & WellbeingGrenville Centre Overall AnnualAttendanceNo. of Nutritionally Balanced MealPacks PurchasedSmithfield Co-op123,118 127,500 129,500 128,153 4,437 2,380 2,620 8,589 3.3Health & WellbeingNo. of Nutritionally Balanced MealPacks PurchasedElizabeth Downs Co-opNo. of Healthy School RecessPacks PurchasedSmithfield Co-op1,632 950 1,045 2,881 4,894 2,640 2,900 6,422 No. of Healthy School RecessPacks PurchasedElizabeth Downs Co-op839 265 290 1509 Economic ProsperityEconomic Prosperity has seen some good results in the last financial year, particularly in employmentoutcomes and support provided to small business. These results reflect community interest in alternativetraining and employment programs offered through Council sponsored programs. These initiatives are a directresponse to community need.Use of the Advanced Manufacturing Design Centre reduced significantly this past year. This is due to the focusof local companies on tendering for mining and defence contracts and less for automotive contracts. Differentsoftware is required for mining and defence industries than the design centre currently offers.26

Economic Prosperity Annual Statement Measures and 2006/07 ResultsPlayfordPlanObjectiveIndicatorMeasureActual Target Target YTD2005/06 2006/07 2007/08 2006/07ResultAgainstTargetNumber of new business1.1 Business Collaboration networks and alliances (structures 5 5 5 1 xfor collaboration in place)1.1(1.1.7)Number of Businessesusing AdvancedManufacturing DesignCentreNo. of new businesses involvedeach year.24 20 20 8 x1.2Direct Support to smallbusiness in partnershipwith BECNumber of businesses receivingsupport.355 200 200 293 1.2Number of schoolbased apprenticeshipsNumber of apprenticeshipsoccurring each year.9 20 23 23 1.2 EmploymentNo of people progressed inemployability and employmentdirectly through Councilsponsored programs300 60 60 109 Safety / Risk - Potholes 1760 N/A N/A 2,3151.31.3City InfrastructureService Levels -ROADSCity InfrastructureService Levels -FOOTPATHSSafety / Risk - Repair Costs $90k N/A N/A $101kAppearance / Quality - Acceptable N/A N/A N/A 707.84Appearance / Quality -UnacceptableN/A N/A N/A 81.2Coverage / Function - Sealed 664 N/A N/A 681Coverage / Function - Unsealed N/A N/A N/A 106Life Cycle Costing $2.27k N/A N/A$5735.26 /km *Safety / Risk - Incidents N/A N/A N/A 480Safety / Risk - Cost of Insurance N/A N/A N/A $4kAppearance / Quality - Acceptable N/A N/A N/A 228.2 kmAppearance / Quality -UnacceptableN/A N/A N/A 335.6 kmCoverage / Function - Constructed N/A N/A N/A 529.3 kmCoverage / Function -Unconstructed16 N/A N/A 34.6 kmLife Cycle Costing $1.0m N/A N/A $960k* Measurement method for Roads Life Cycle Costing changed during 2007/08.27

Environmental CareCouncil's current kerbside waste collection service is for rubbish and recycling. Green waste collection isoptional and is a user pays system. Thus it is unlikely that waste diversion from landfill target can be reachedas not enough homes have taken up the user pay option, and green waste is being diverted into landfill viarubbish bins. For Council to improve upon this rate, a subsided green waste service would need to be providedto residents. The negotiation of new contracts and service level review in the next financial year will provide anopportunity for Council to review its kerbside services.A 'Boxing-Up Day' was held in June 2007 in which 8,400 plants were put in multiple species boxes ready fordistribution by 25 scheme participant property owners and Playford Greening Volunteers. Council has workedwith schools and the Northern NRM Project in Virginia to ensure more Indigenous plants were planted.Environmental Care Annual Statement Measures and 2006/07 ResultsPlayfordPlanObjectiveIndicatorMeasureActual Target Target YTD2005/06 2006/07 2007/08 2006/07ResultAgainstTarget2.1EnvironmentalSustainabilityProportion of waste diverted fromlandfill.35% 40% 45% 32% x2.2 BiodiversityThe number of indigenous plantsplanted by Council staff, volunteersand contractors and distributed tolandowners under the Buffers toBushland Program.The number of species ofindigenous plants grown/propagatedas proportion of those available inthe region.45,190 15,000 10,000 18,384 19.5%(98)20.1%(101)20.5%(103)20.1%(101)CorporateWhilst the Workforce Planning Framework has been completed, the implementation will be undertaken during2007/08 on a trial basis with the Civil Maintenance and Construction Teams.The resource allocation methodology was changed to a service review process. Although the methodologyprocess was not fully completed, numerous discussions were held with Elected Members and subsequently ajoint reference group was formed to progress the service review process.The Workers Compensation Injury Frequency Rate was well over the average of other Group A Councils butthere are many factors that have a negative influence on Playford’s rating. One factor is Playford’s groupingwith Group A Councils where there is a significant difference in FTE (Full Time Equivalent) staff numbers.Playford’s FTE is 283 compared to 405 for Group A Councils (if we had more FTEs, this would reduce ourInjury Frequency Rate as the ratio would change). Also, the rating is dependent on all councils keeping theirreimbursements up to date.28

Corporate Annual Statement Measures and 2006/07 ResultsCorporatePlanObjectiveIndicatorMeasureActual Target Target YTD2005/06 2006/07 2007/08 2006/07ResultAgainstTarget1.5 Workforce PlanningImplementation of framework forWorkforce Planning30%Phase 1 & 260%Phase 3100%Phase 430% x1.7 Retention3.1 Governance4.1 Resource Allocation4.2 FinancialEmployee Turnover - No. ofemployees that leave during theperiod (exempt casual staff andstaff who terminate due to end oftheir funded contract)Percentage of Playford policiesthat are currentAgreement to a resourceallocation methodologyOperating Surplus/ OperatingRevenue5.7%

Organisational ExcellenceCommunity EngagementCity of Playford is committed to engaging with the community in setting priorities for action and contributing todecision making that affects the community. Council is an organisation that listens to the community and workstogether toward achieving the community vision and goals. While various teams have historically andconsistently engaged with their communities of interest and place, in 2006/07 at an organisational level, Councilformed a Community Engagement Team to support engagement practice across the organisation. We arelooking forward to developing a community engagement framework and other initiatives to support us in activelyengaging our community in the years to come.Awards Received By CouncilThe following awards were received during 2006/07:October 2006• Australian Business Arts Foundation – KPMG adviceBank AwardThis was received by the City of Playford in partnership with Out of the Square Network and thecorporate sector.November 2006• National Award for Local Government 2006 - Outstanding Achievement Award – StrengtheningIndigenous Communities CategoryThis was received by the City of Playford for its Marni Waeindi – Indigenous Transition Pathway CentreProject.• NIFTeY Award (National Investment for the Early Years SA) - Award for ExcellenceThis was received by the Cities of Playford and Salisbury for Early Childhood Lapsit Outreach LiteracyProgram.May 2007• National Volunteering Week AwardsReceived by the Grenville Community Connections Hub for: “After Hours” Programs 2006 and Servicesto the Elderly 2007.30

Organisational AccountabilityAnnual Auditors FeesThe City of Playford paid $13,000 in remuneration for the annual audit of the 2006/07 financial statements.There was no other remuneration payable.Workforce ProfileEqual Employment Opportunity (EEO)The City of Playford has made significant progress in the overall gender balance across the organisation as anentity. However, as is the case at other local governments and organisations, it is challenging to attract femalestaff into the traditionally male dominated areas of engineering and outside services such as civil and parks. Itmust be taken into account that in these disciplines the potential pool of applicants in the labour market(including internationally) and particularly at the senior levels, is limited.External recruitment and internal merit-based appointment of women to senior positions has been successful atsenior levels with women now representing 35% of the Team/Group Manager membership. The City of Playfordseeks to ensure that all relevant policies, guidelines and procedures are in accordance with State and Federalequal opportunity legislation. The City of Playford supports and fulfils its EEO legal obligations by undertakingthe following actions:Selection ProcessThe selection process is based solely on the principle of merit; that is, the extent to which an applicant hasabilities, aptitude, skills, qualifications, knowledge, experience and achievement (including community service),characteristics and personal qualities relevant to carrying out duties in question. This includes, where relevant,the manner in which an applicant carried out the duties or functions of any position, employment or occupationpreviously held or engaged in (paid or unpaid) and the extent to which an applicant has potential fordevelopment necessary to fulfil the position within reasonable time and resources.Training and DevelopmentThese activities are provided to staff on an equal opportunity basis.Conditions of EmploymentOur policies, guidelines and procedures, South Australian and Commonwealth Equal Employment Opportunityand anti-discrimination legislation protect our staff from discrimination on the grounds of their sex; genderidentity; sexual orientation; lawful sexual activity; marital, parental or carer status; pregnancy; breastfeeding;age; physical features; impairment; race; political or religious belief or activity; and industrial activity.31

Work-Life Balance InitiativesThe City of Playford’s commitment to work/life balance is supported by the provisions in the EnterpriseAgreement. New and updated clauses exist to increase Council’s already excellent family friendly provisions.These include:• Flexible work arrangements• Overtime• Family responsibility leave• Access to sick leave for family responsibilities• Recreation Leave• Maternity/adoption leave• Salary Sacrifice provisions• Equal opportunity policies• Employee Assistance Program.Council is committed to ensuring that staff, regardless of their gender, feels comfortable in accessing the familyfriendly provisions described above to improve their work/life balance.Code of ConductEmployee Code of Conduct AllegationsDuring 2006/07 there were six allegations made in regards to the Code of Conduct:• Two where it has been determined that no further action is warranted• Four which resulted in investigations and appropriate action taken.32

Workforce SalariesSalary Bracket Male Female TotalPercentage0 to 10,000 4 10 14 3.85%10,000 to 20,000 3 12 15 4.12%20,000 to 30,000 5 24 29 7.97%30,000 to 40,000 2 20 22 6.04%40,000 to 50,000 94 33 127 34.89%50,000 to 60,000 21 48 69 18.96%60,000 to 70,000 23 14 37 10.16%70,000 to 80,000 10 7 17 4.67%80,000 to 90,000 2 1 3 0.82%90,000 to 100,0000 6 5 11 3.02%100,000 to 110,000 7 1 8 2.20%110,000 to 120,000 1 1 2 0.55%120,000 to 130,000 6 0 6 1.65%130,000 to 140,000 1 0 1 0.27%140,000 to 150,000 0 0 0 0.00%150,000 to 160,000 0 0 0 0.00%160,000 to 170,000 0 1 1 0.27%170,000 to 180,000 1 0 1 0.27%180,000 to 190,000 0 0 0 0.00%190,000 to 200,000 0 0 0 0.00%200,000 to 210,000 0 0 0 0.00%210,000 to 220,000 1 0 1 0.27%Total 187 177 364 100%The total remuneration package of managers is reported in the above table. The remuneration packageconsists of the employer superannuation contribution, cost of Council supplied vehicle and salary. Salaries ofgeneral staff are reported in the above table, excluding employer super contribution. No bonuses are paid.33

Workforce SizeThere is 13 Indigenous staff employed by Council, totalling 3.6% of the entire workforce.Employee Status No. PercentageCasual 30 8.24%Ongoing Full Time 209 57.42%Ongoing Part Time 57 15.66%Contract Leadership 1 0.27%Fixed Term Contract 40 10.99%Secondment 3 0.82%Contract Part Time 24 6.59%Total 364 100%Management RemunerationThe remuneration practices of the City of Playford should ensure that the organisation is competitive inattracting and retaining staff capable of delivering the communities and organisational desired outcomes. It isessential that the remuneration be perceived as equitable in terms of the market place and the complexity of therole. City of Playford’s continuing success in a competitive environment depends on the quality and motivationof its employees, which requires at a minimum that employees should receive appropriate remuneration for thework they undertake.Mercer Human Resource Consulting, experts in remuneration, was engaged in 2004 to review the managementremuneration practices of the City of Playford. A new remuneration model has been developed since theconclusion of the review. The new model aligns manager’s remuneration to a percentage of the CEOsremuneration, and is based on the individual’s competencies, experience and market value of the position. Thenew system was introduced in July 2006 and required the alignment of current remuneration to the new system.The alignment to the new system resulted in approximately an $83,000 (2%) variance above that budgetedfigure for the remuneration of management.The employment and contractual arrangements of the management group has also been reviewed tostandardise employment arrangements. The management contracts have been revised and six managers,previously employed under the City of Playford Enterprise Agreement have been employed under the newmanagement contracts. The six manager’s salaries were increased to compensate for loss of flexi time,overtime and employment under contractual arrangements. Two managers remain employed under the City ofPlayford Enterprise Agreement.34

Freedom of InformationRequests for information that is not already public (and is not listed as a public document under “DocumentsHeld by Council”) will be considered under the Freedom of Information Act 1991. This does not guaranteeaccess.Requests are required to be in writing and addressed to the Freedom of Information Officer, City of Playford, 12Bishopstone Road, Davoren Park, 5113 (Request for Access forms are available from the following locations,and can be lodged together with the prescribed fee determined by Regulation (currently $25.75):• Playford Civic Centre, Customer Service Counter,10 Playford Boulevard, Elizabeth City Centre• Playford Library Service, Customer Service Counter, Munno Para Shopping City, Shop 51, 600 MainNorth Road, Smithfield; or• State Records of SA website (www.archives.sa.gov.au/foi/forms.html).Although the Freedom of Information Act 1991 allows 30 days to deal with applications, Council endeavours toprocess them as quickly as possible.Your RightsThe right exists to amend personal information of a document held by Council to ensure that personalinformation which may be used by the Council does not unfairly harm or misrepresent the person referred to.A person can apply for the amendment of a Council document which they have already obtained, provided that:• The document containing the personal information relates to the applicant only• The information is available for use by Council in connection with its administrative functions• The information is, in the person’s opinion, incomplete, incorrect, out of date or misleading.Access to documents may be available under other arrangements in some circumstances, without the need torefer to provisions contained in the Local Government Act.Who to ContactApplications and enquiries relating to Freedom of Information matters may be directed to the Freedom ofInformation Officer between 9.00 am and 5.00 pm, Monday to Friday by telephone 8256 0288.35

Freedom of Information continued …Requests during 2006/07During 2006/07, 13 requests for information under the Freedom of Information Act were received. Thiscompares with three requests for the 2005/06 financial year. Of these 13 requests, nine were processed andgranted in full. Of the remaining four: one involved documents that the City of Playford did not hold, oneinvolved documents that the applicant already had and two are yet to be completed (carried over to 2007/08).Three requests involved an extension of time limit under section 14a as the requests required consultation witha third party. The other remaining six requests were processed within the required timeframe.Ombudsman ReportThe State Ombudsman provides free, impartial, informal and timely resolution of complaints to promote fairness,openness and good public administration in South Australia.The South Australian Ombudsman assists with complaints about the administrative actions of a localgovernment council and reviews decisions about Freedom of Information.The following information details the number of complaints received for each financial year and the number ofcomplaints which have been finalised. A number of the complaints are carried forward to the next financial yearfor completion.2003/04 2004/05 2005/06 2006/07No. of Complaints Received 37 26 20 24No. of Complaints Completed 29 33 22 20Summary of Complaints Completed – Outcome 1/7/06 – 30/6/07OutcomeNo.Advice Given 7Advice Given - Referred to Agency 5Advice Given - Other/General 1Preliminary Investigation - Reasonable Resolution 4Preliminary Investigation - Not Sustained 1Preliminary Investigation - Partly Resolved in Favour ofComplainant1Preliminary Investigation - Not Sustained - Explanation Given 1Total 2036

Description of outcomesAdvice givenInformation or advice was provided to the public without contacting the agency complained against.Preliminary InvestigationA Preliminary Investigation pursuant to section 18(1) of the Ombudsman Act is conducted to obtain preliminaryinformation to determine whether the matter should proceed to a full investigation. Often such an investigationcan involve a considerable amount of effort on the part of the investigator, without reaching the point whereformal advice of a full investigation is necessary. Many complaints are resolved during this phase.Not SustainedA matter is classed as Not Sustained if the complaint has been investigated and sufficient information has beendiscovered to conclude that there is no basis to form an opinion pursuant to section 25(1).Not Sustained - Explanation GivenA matter is classed as Not Sustained - Explanation Given if the complaint has been investigated and sufficientinformation has been discovered to conclude that there is no basis to form an opinion pursuant to section 25(1),but as a consequence of the information obtained the complainant is able to receive an explanation of thereasons for the agency’s actions, and that explanation is in advance of the explanation or information which thecomplainant previously had from the agency.Partly Resolved in Favour of ComplainantA matter is Partly Resolved in Favour of Complainant if there is some benefit to the complainant or some actionby the agency such that the substance of the complaint is partly addressed and resolved. This descriptionwould often apply where there would not have been sufficient information to sustain the complaint, butnotwithstanding this the agency acts to partly remove the difficulty which was the basis of the complaint.Reasonable ResolutionA matter is classed as having a Reasonable Resolution if, before an opinion is formed pursuant to section 25(1)of the Ombudsman Act, some action is taken by the agency to remedy (in the opinion of the Ombudsman) thecause of the complaint, or provision is made whereby the complaint can be properly addressed by the agency.37

Corporate Governance Documents and PoliciesThe City of Playford has a range of corporate governance documents and policies to assist with decisionmakingand to ensure Council’s activities are undertaken in an accountable, efficient, open and transparentmanner.The following list outlines the current corporate governance documents and policies of the City of Playford atthe end of the 2006/07 financial year:• Access to Meetings and Documents Code ofPractice• Accident Reporting, Investigation and First AidPolicy• After Hours Response Policy• Alcohol and Drugs in the Workplace Policy• Annual Financial Statements• Asbestos Policy• Assessment Book• Capitalisation Policy• Circus Policy• City of Playford Annual Report• City Plan• Club Indebtedness Policy• Code of Conduct - Elected Members and Staff• Code of Practice - Procedures at Council,Special Council, and Committee Meetings• Code of Practice - Public Access to Council,Special Council and Committee Meetings &Documents• Collection of Long Term Debts Policy• Committee and Development AssessmentPanel Annual Reports• Committee Terms of Reference and RulesPolicy• Community Involvement Policy• Community Wellbeing Goal Plan• Competency and Training Policy• Complaints and Grievance Handling Policy• Confined Spaces Policy• Consultation Policy• Corporate Management Plan• Corporate Uniform Policy and Dress Image• Council Agendas, Reports, Minutes andCharters of Committees and Council• Council and Committee Code of Practice• Council By-laws• Credit Card Policy• Creditor Payment Terms Policy• Criminal Record Check for Volunteers Policy• Damage to Clothing/Personal Property Policy• Debt Policy• Delegations Register• Development Assessment Panel Code ofPractice• Development of Standard OperatingProcedures• Discipline Policy• Disease Prevention Policy• Donations to Communities Affected by NaturalDisasters Policy• Economic Prosperity Goal Plan• Elected Members Access and Use of CouncilInformation Policy• Elected Members Recognition of ServicePolicy• Elected Members Support Policy• Elected Members Training and DevelopmentPolicy• Election Campaign Donation Returns• Election of Health and Safety RepresentativesPolicy• Electrical Safety Policy• Elizabeth Regional Centre Car Parking FundPolicy• Emergency Procedures Policy• Employee Assistance Program Policy• Employee Representative Support Policy• Environmental Care Goal Plan38

• Equal Opportunity and Affirmative ActionPolicy• Exit Interviews Policy• Fees and Charges Policy• Fees and Charges Schedule• First Aid Allowance Policy• Flying of Flags on Council Property Policy• Governance Architecture• Graffiti Maintenance and Prevention Policy• Hazard Management Policy• Higher Duties - Secondment and MixedFunctions Policy• Induction and Probation Policy• Information Technology Policy• Injury Management Policy and Procedures• Internal Control Policy• Isolated / Remote Work Policy• Leave and Absences Policy• Limits of Authority Policy• Management of Change Policy• Management of Excessive Leave Policy• Management of Working Outdoors Policy• Management of Workplace Substances Policy• Manual Handling Policy• Mobile Phone - Allocation and AdministrationPolicy• Motor Vehicle Purchase and Usage Policy• Naming of Assets Policy• Oil Spill Response Policy• Order Making Policy• Performance Appraisals Policy andGuidelines• Performance Appraisal Policy and Form -Childcare• Personal Protective Equipment and ClothingPolicy• Personnel Files Policy• Petty Cash Policy• Plant and Equipment Policy• Playford Plan• Private Motor Vehicle Allowance Policy• Purchasing Policy• Purchasing, Contracts Policy• Purchasing, Tendering and Contracts Policy• Rates Rebate Policy• Rating Policy Statement• Reclassification Policy• Recognition of Staff Policy• Records Management Policy• Recruitment and Selection Policy• Register of Community Land• Register of Elected Members Expenses andAllowances• Register of Interests – Primary and OrdinaryReturns• Register of Public Roads• Register of Staff Salaries and Benefits• Risk Management Policy• Salary Sacrifice for Super Contribution Policy• Sale or Disposal of Land and Other AssetsPolicy• Screened Based Equipment Policy• Serious Medical Condition or Injury Policy• Smoke Free Work Environment Policy• Special Occasion Temporary Road ClosurePolicy• Staff Member Expenses Policy• Sub - Delegation Register• Telephone Standards and Procedures Policy• Unsanctioned Events Policy• Use of Council Emblem Policy• Use of Mobile Communication Devices Policy• Use of Public Roads for Business PurposesPolicy• Vegetation Management Policy• Volunteer Policy• Walkway Closure Policy• Work Experience Policy• Zero Tolerance to Bullying Policy39

Procurement ServicesThe City of Playford is committed to providing our community with “value for money” competitive procurementprocesses.The City of Playford prides itself on maintaining its procurement process through:• Value for money in expenditure of public funds• Open and fair competition• Professional integrity and probity• Client service• Management of risk• Accountability• Simplicity• Local industry sourcing where local suppliers can demonstrate competitiveness and capability.Maintaining integrity and probity throughout the lifecycle of the procurement process ensures that Council'spurchase of goods and/or services is fair and equitable. The following probity principles guide the way in whichCouncil conducts its business:• Fairness & impartiality• Use of a competitive process• Consistency and transparency of process• Security and confidentiality identification and resolution of conflicts of interest• Compliance with legislative obligations and procurement policies.Throughout the procurement process Council also ensures that consideration is given to impact on localbusiness and employment opportunities within the Playford community. Local industry is a major contributor tothe sustainability of our community, and Council is very proud to support industry in the Playford area wherethat industry is competitive regarding ability to supply, quality, service and price.Community Land Management PlansAll Local Government land (except roads and excluded land) owned by Council or under Council's care, andcontrol (e.g. Crown Land) and management is classified as community land.Ten Community Land Management Plans were amended during 2006/07 to include 145 additional properties.Council's databases (Pathway and Exponare) including the Community Land Register were updatedaccordingly. Upon request the register is available for inspection (hard copy or electronically) without charge.Due to the development in the area, Council has decided to update the Community Land Management Plansevery year.40

Appendices1. City of Playford Audited Annual Financial Statements – 2006/072. City of Playford Rating Policy Statement 2006/073. Subsidiary Annual Reports3.1. Gawler River Flood Management Authority (GRFMA)3.2. Northern Adelaide Waste Management Authority (NAWMA)3.3. Waterproofing Northern Adelaide Regional Subsidiary (WNARS)41

Appendix 1:City of PlayfordAudited Annual Financial Statements2006/07

AnnualFinancialStatements2006/2007

Annual Financial StatementsCity of PlayfordGeneral Purpose Financial Reportsfor the year ended 30 June 2007Table of ContentsPage NumberIncome Statement 3Balance Sheet 4Statement of Changes in Equity (including reserve movements) 5Cash Flow Statement 6Notes to, and forming part of, the Annual Financial StatementsPage Number1 Statement of Significant Accounting Policies 7-122 Reporting by Function 13-143 Revenues 15-164 Expenses 175 Asset Disposals 176 Current Assets 187 Non-current Assets 188 Infrastructure, Property, Plant & Equipment 19-209 Liabilities 2110 Reserves 21-2211 Reconciliation to Cash Flow Statement 22-2312 Financial Instruments 23-2513 Financial Indicators 25-2614 Uniform Presentation of Finances 2615 Operating Leases 26-2716 Superannuation 2717 Joint Ventures and Associates 28-2918 Contingent Assets & Liabilities 2919 Significant Items 2920 Adoption of 2007 Model Financial Statements 30-3121 Changes in Accounting Policy 32Auditor’s Independence Declaration 33Chief Executive Officer’s Statement 34Chief Executive Officer’s Statements of Audit Independence 35-38Statement of Audit Independence by Presiding Member of the Corporate39Governance CommitteeIndependent Auditor’s Report 412

City of PlayfordAnnual Financial StatementsFor the year ended 30 June 2007City of PlayfordINCOME STATEMENTfor the year ended 30 June 20072007 2006Note $000’s $000’sINCOMERates – General 3 31,041 29,184Statutory charges 3 1,276 1,024User charges 3 1,681 1,380Grants, subsidies & contributions 3 13,914 12,966Investment income 3 612 344Reimbursements 3 410 721Other income 3 347 685Share of profits of associates and joint ventures 17,19 120 75TOTAL INCOME 49,401 46,379EXPENSESEmployee costs 4 19,670 17,569Materials, contracts & other expenses 4 18,110 18,058Finance costs 4 2,394 2,073Depreciation 4 10,453 9,007Share of losses of associates & joint ventures 17 - 707TOTAL EXPENSES 50,627 47,414Operating Surplus (Deficit) before capital amounts andsignificant items(1,226) (1,035)Significant item – Gawler River Flood Management Authority 19 1,747 -OPERATING SURPLUS (DEFICIT) BEFORE CAPITAL 521 (1,035)AMOUNTSNet gain (loss) on disposal or revaluation of assets 5 645 718Amounts specifically for new or upgraded assets 3 2,046 4,310Physical resources received free of charge 3 8,112 6,207NET SURPLUS (DEFICIT) 11,324 10,200To be read in conjunction with the accompanying notes3

City of PlayfordAnnual Financial StatementsFor the year ended 30 June 2007City Of PlayfordBALANCE SHEETas at 30 June 20072007 2006ASSETS Note $000’s $000’sCurrent AssetsCash & cash equivalents 6, 11a 7,277 3,288Trade & other receivables 6 2,532 5,582Other current assets 6 189 120Inventories 6 127 127Total Current Assets 10,125 9,117Non-current assetsFinancial assets 7 61 66Equity accounted subsidiaries 7 3,007 622Infrastructure, property, plant & equipment 8 406,371 372,020Other non-current assets 7 1,875 3,937Total Non-current assets 411,314 376,645TOTAL ASSETS 421,439 385,762LIABILITIESCurrent LiabilitiesTrade & other payables 9 14,276 12,059Short-term provisions 9 1,598 915Borrowings 9 4,880 4,669Total Current Liabilities 20,754 17,643Non-current liabilitiesLong-term provisions 9 539 529Long-term borrowings 9 29,769 26,224Total Non-current liabilities 30,308 26,753TOTAL LIABILITIES 51,062 44,396NET ASSETS 370,377 341,366EQUITYAccumulated Surplus 229,836 218,682Asset Revaluation Reserve 10 135,467 117,780Other Reserves 10 5,074 4,904TOTAL EQUITY 370,377 341,366To be read in conjunction with the accompanying notes4

City of PlayfordAnnual Financial StatementsFor the year ended 30 June 2007City Of PlayfordSTATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 20072007 2006Note $000’s $000’sACCUMULATED SURPLUSBalance at end of previous reporting period 218,682 209,922Net Surplus (Deficit) for year 11,324 10,200Transfers from Other Reserves 2,255 -Transfers to Other Reserves (2,425) (1,440)Balance at end of reporting period 229,836 218,682ASSET REVALUATION RESERVEBalance at end of previous reporting period 117,780 61,780Gain (loss) on revaluation of infrastructure, property, plant 17,687 56,401& equipmentTransfer to accumulated surplus on disposal of infrastructure, - (401)property, plant & equipmentBalance at end of reporting period 10 135,467 117,780OTHER RESERVESBalance at end of previous reporting period 4,904 3,464Transfers from Accumulated Surplus 2,921 3,086Transfers to Accumulated Surplus (2,751) (1,646)Balance at end of reporting period 5,074 4,904TOTAL EQUITY AT END OF REPORTING PERIOD 370,377 341,366To be read in conjunction with the accompanying notes5

City of PlayfordAnnual Financial StatementsFor the year ended 30 June 2007City Of PlayfordCASH FLOW STATEMENTfor the year ended 30 June 20072007 2006Note $000’s $000’sCASH FLOWS FROM OPERATING ACTIVITIESReceiptsOperating receipts 58,150 47,493Investment receipts 556 330PaymentsOperating payments to suppliers & employees (41,247) (37,803)Finance payments (2,461) (2,011)Net cash provided by (used in) operating activities 11b 14,998 8,009CASH FLOWS FROM INVESTING ACTIVITIESReceiptsGrants specifically for new or upgraded assets 2,046 4,311Sale of replaced assets 1,483 1,477Repayments of loans by community groups 5 5PaymentsExpenditure on renewal/replacement of assets (10,083) (7,916)Expenditure on new/upgraded assets (7,698) (6,221)Capital contributed to associated entities (518) (139)Net cash provided by (used in ) investing activities (14,765) (8,483)CASH FLOWS FROM FINANCING ACTIVITIESReceiptsProceeds from borrowings 8,199 5,000PaymentsRepayment of borrowings (4,729) (5,611)Net cash provided by (used in) financing activities 3,470 (611)NET INCREASE (DECREASE) IN CASH HELD 3,703 (1,085)Cash & cash equivalents at beginning of reporting period 3,288 4,373CASH & CASH EQUIVALENTS AT END OF REPORTINGPERIOD11a 6,991 3,288To be read in conjunction with the accompanying notes6

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies adopted in the preparation of this general purpose financialreport are set out below. These policies have been consistently applied to all the yearspresented, unless otherwise stated.1 Basis of Preparation1.1 Compliance with Australian equivalents to International Financial Reporting StandardsThis general purpose financial report has been prepared in accordance with Australianequivalents to International Financial Reporting Standards (AIFRS) as they apply to not-forprofitentities, other authoritative pronouncements of the Australian Accounting StandardsBoard, Urgent Issues Group Interpretations (UIGs) and relevant South Australian legislation.The financial report was authorised for issue by the Council by certificate under clause 11 ofthe Local Government (Financial Management) Regulations 1999.1.2 Historical Cost ConventionExcept where stated below, these financial statements have been prepared in accordancewith the historical cost convention.1.3 Critical Accounting EstimatesThe preparation of financial statements in conformity with AIFRS requires the use of certaincritical accounting estimates, and requires management to exercise its judgement in applyingCouncil’s accounting policies. The areas involving a higher degree of judgment orcomplexity, or areas where assumptions and estimates are significant to the financialstatements are specifically referred to in the relevant sections of this Note.1.4 RoundingAll amounts in the financial statements have been rounded to the nearest thousand dollars($’000).2 Local Government Reporting EntityThe City of Playford is incorporated under the SA Local Government Act 1999 and has itsprincipal place of business at 10 Playford Boulevard, Elizabeth SA 5112.Trust monies and property held by Council but subject to the control of other persons havebeen excluded from these reports.This general purpose financial report covers the City of Playford as an individual entity inSouth Australia under the Local Government Act 1999.3 Revenue RecognitionRates, grants, donations and other contributions are recognised as revenues when Councilobtains control over the assets comprising the contributions. Control over assets acquiredfrom rates is obtained at the commencement of the rating period or, where earlier, uponreceipt of the rates. Control over assets received by way of grant(s) is normally obtainedupon their receipt or upon prior notification that a grant has been secured. The timing ofcontrol depends upon the arrangement between the grantor and Council.Where a contribution or grant recognised as revenue during the reporting period wasobtained on the condition that it be expended in a particular manner or used over a particularperiod, and these conditions were not finalised as at the reporting date, an adjustment ismade to the revenue recorded so as to match this to the expenditure recorded in Council’saccounting records. The balance of the contribution will be recognised as revenue in a futureaccounting period as expenditure occurs.7

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.4 Cash, Cash Equivalents and other Financial InstrumentsCash Assets include all amounts readily convertible to cash on hand at Council’s option withan insignificant risk of changes in value with a maturity of three months or less from the dateof acquisition.Receivables for rates and annual charges are secured over the subject land, and bearinterest at rates determined in accordance with the Local Government Act 1999 (asamended). Other receivables are generally unsecured and do not bear interest.All receivables are reviewed as at the reporting date and adequate allowance made foramounts the receipt of which is considered doubtful.All financial instruments are recognised at fair value at the date of recognition. A detailedstatement of the accounting policies applied to financial instruments forms part of Note 12.5 InventoriesInventories held in respect of stores have been valued by using the weighted average coston a continual basis, after adjustment for loss of service potential. Inventories held in respectof business undertakings have been valued at the lower of cost and net realisable value.6 Infrastructure, Property, Plant & Equipment6.1 Transitional ProvisionsCouncil has elected not to recognise land under roads in accordance with the deferralarrangements available under AASB 1045 Land Under Roads – Amendments to AAS 27A,AAS 29A & AAS 31A.All non-current assets purchased or constructed are capitalised as the expenditure isincurred and depreciated as soon as the asset is held “ready for use”.6.2 Initial RecognitionAll assets are initially recognised at cost. Cost is determined as the fair value of the assetsgiven as consideration plus costs incidental to the acquisition, including architects' fees andengineering design fees and all other costs incurred. For assets acquired at no cost or fornominal consideration, cost is determined as fair value at the date of acquisition. The cost ofnon-current assets constructed by the Council includes the cost of all materials used inconstruction and direct labour on the project. Fixed and variable overheads are currently notincluded in the cost of fixed assets constructed.Capital works still in progress at balance date are recognised as other non-current assetsand transferred to infrastructure, property, plant & equipment when completed ready for use.6.3 MaterialityAssets with an economic life in excess of one year are only capitalised where the cost ofacquisition exceeds materiality thresholds established by Council for each type of assetunder Council’s capitalisation policy. In determining (and in annually reviewing) suchthresholds, regard is had to the nature of the asset and its estimated service life. Examplesof capitalisation thresholds applied during the year are as follows. No capitalisation thresholdis applied to the acquisition of land or interests in land.Fleet & Plant Assets o Expenditure greater than $2,000Sealed Roads o Any treatment greater than or equal to 10% of the roadsegment.o All new road construction.Unsealed Roads o Treatments greater than or equal to 10% of the roadssegment & greater than or equal to $5,000.8

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.IT & Office Equipment/ FurnitureooExpenditure greater than or equal to $2,000 for individualitems.Expenditure greater than or equal to $15,000 for purchase orupgrades of core operating systemso One off site licence fees greater than or equal to $15,000.Drainage & Pits o Repairs greater than or equal to 10% of the total length ofthe drainage segment.o All new drainage construction.Kerb & Channel o Repairs greater than or equal to 10% of total kerb segmentlength.o All new kerb construction.Signs o All new signs and/or posts.o Complete replacement of existing signs & posts.Traffic CalmingDeviceso Any new or complete replacement of kerb, fence andDisability Discrimination Requirement component of thedevice.o New traffic islands.Footpaths o Repairs greater than or equal to 10% of the total area of thefootpath segment.o All new footpath construction.Research & DesignCostsoAll design costs incurred after a formal decision from Councilto proceed with the project. Subject to the tests of AASB 136Impairment of Assets.Irrigation o All new irrigation equipment.o Renewal of irrigation equipment greater than or equal to 10%of the value of the irrigation equipment in the defined reservearea.Land o Landscaping to improved land that constitutes greater thanor equal to 10% of the book value of the land.Park Furniture o All new park furniture.oooLandscaping to otherwise arable land that constitutes greaterthan or equal to 10% of the area of the land.Significant trees greater than or equal to $3,000 in value attime of planting.Renewal of existing park furniture greater than or equal to10% of the value of the individual furniture.Playground Equipment o All new playground equipment.oLibrary Collection &Public ArtworksoRenewal of playground equipment greater than or equal to10% of the value of the playground equipment in the definedreserve area.Library books, videos, CD’s and other permanent additionsto the library collection.o Public Artwork of individual value over $5,000.Buildings o Additions to the building greater than or equal to 5% of thebuilding value.oRenewal greater than or equal to 10% of the value of thecomponent of the building.6.4 Subsequent RecognitionCertain asset classes are revalued on a regular basis such that the carrying values are notmaterially different from fair value. For infrastructure and other asset classes where no activemarket exists, fair value is determined to be the current replacement cost of an asset less,where applicable, accumulated depreciation calculated on the basis of such cost to reflectthe already consumed or expired future economic benefits of the asset. Further detail ofexisting valuations, methods and valuers are provided at Note 8.9

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.6.5 Depreciation of Non-current AssetsOther than land, all infrastructure, property, plant and equipment assets recognised aresystematically depreciated over their useful lives in a manner which reflects the consumptionof the service potential embodied in those assets.Depreciation is recognised on a straight-line basis. Major depreciation periods for each classof asset are shown below. Depreciation periods for infrastructure assets have beenestimated based on the best information available to Council.Plant Furniture & EquipmentOffice EquipmentOffice FurnitureVehicles & Road-making EquipmentOther Plant & EquipmentPlayground EquipmentBenches & SeatsBuildingsBuildingsInfrastructureSealed Roads – SealSealed Roads – PavementUnsealed RoadsBridges – ConcretePaving & FootpathsKerb & GutterDrainsCulvertsPipesOther AssetsLibrary BooksArtwork5 – 10 years10 – 15 years5 – 10 years5 – 15 years5 – 15 years10 – 20 years50 – 75 years10 – 40 years20 – 50 years10 – 20 years80 – 100 years10 – 50 years50 – 80 years80 – 100 years80 – 100 years80 – 100 years10 – 15 yearsIndefinite6.6 ImpairmentAssets that have an indefinite useful life are not subject to depreciation and are reviewedannually for impairment. Assets that are subject to depreciation are reviewed for impairmentwhenever 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 carryingamount exceeds its recoverable amount (which is the higher of the present value of futurecash outflows or value in use).For assets whose future economic benefits are not dependent on the ability to generate cashflows, and where the future economic benefits would be replaced if Council were deprivedthereof, the value in use is the depreciated replacement cost. In assessing impairment forthese assets, a rebuttable assumption is made that the current replacement cost exceeds theoriginal cost of acquisition.6.7 Borrowing CostsBorrowing costs are currently not included in the cost of fixed assets constructed.7 Payables7.1 Goods & ServicesCreditors are amounts due to external parties for the supply of goods and services and arerecognised as liabilities when the goods and services are received. Creditors are normallypaid 30 days after the month of invoice. No interest is payable on these amounts.10

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.7.2 Payments Received in Advance & DepositsAmounts received from external parties in advance of service delivery, and security depositsheld against possible damage to Council assets, are recognised as liabilities until the serviceis delivered or damage reinstated, or the amount is refunded as the case may be.8 BorrowingsLoans are carried at their principal amounts which represent the present value of future cashflows associated with servicing the debt. Interest is accrued over the period to which itrelates, and is recorded as part of “Trade & other payables”.9 Employee Benefits9.1 Salaries, Wages & Compensated AbsencesLiabilities for employees’ entitlements to salaries, wages and compensated absencesexpected to be paid or settled within 12 months of reporting date are accrued at nominalamounts (including payroll based on-costs) measured in accordance with AASB 119Employee Benefits.Liabilities for employee benefits not expected to be paid or settled within 12 months aremeasured as the present value of the estimated future cash outflows (including payroll basedon-costs) to be made in respect of services provided by employees up to the reporting date.No accrual is made for sick leave as Council experience indicates that, on average, sickleave taken in each reporting period is less than the entitlement accruing in that period, andthis experience is expected to recur in future reporting periods. Council does not makepayment for untaken sick leave.9.2 SuperannuationThe Council makes employer superannuation contributions in respect of its employees to theLocal Government Superannuation Scheme. The Scheme has two types of membership,each of which is funded differently.Accumulation Fund MembersThe accumulation fund receives both employer and employee contributions on a progressivebasis. Employer contributions are normally based on a fixed percentage of employeeearnings in accordance with Superannuation Guarantee Legislation (9% in 2006/07; 9% in2005/06). No further liability accrues to the employer as the superannuation benefits accruingto employees are represented by their share of the net assets of the Fund.Defined Benefit MembersCouncil makes employer contributions to the defined benefits categories of the Scheme atrates determined by the Scheme's Trustee. The rate is currently 9% (9% in 2005/2006) ofsuperannuation salary. Employees also make member contributions to the Fund. As such,assets accumulate in the Fund to meet the member's benefits, as defined in the Trust Deed,as they accrue.The Fund's Defined Benefit Plan is a multi-employer sponsored plan. As the Fund's assetsand liabilities are pooled and are not allocated by employer, the Actuary is unable to allocatebenefit liabilities, assets and costs between employers. As provided by AASB 119.32(b),Council does not use defined benefit accounting for these contributions.10 Construction ContractsConstruction works undertaken by Council for third parties are generally on an agency basiswhere the third party reimburses Council for actual costs incurred, and usually do not extendbeyond the reporting period. As there is no profit component, such works are treated as100% completed. Reimbursements not received are recognised as receivables andreimbursements received in advance are recognised as “payments received in advance”.11

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.11 Joint Ventures & Associated EntitiesAn associate is an entity, other than a partnership, over which Council exercises significantinfluence and where the investment in that entity has not been acquired with a view todisposal in the near future. In preparing these financial statements, Councils equity in theNorthern Adelaide Waste Management Authority, Gawler River Floodplain ManagementAuthority and Waterproofing Northern Adelaide Regional Subsidiaries are recognised at thevalues set out in Note 17.12 LeasesLease arrangements have been accounted for in accordance with Australian AccountingStandard AASB 117 Leases.In respect of finance leases, where Council substantially carries all of the risks incidental toownership, the leased items are initially recognised as assets and liabilities equal in amountto the present value of the minimum lease payments. The assets are disclosed as assetsunder lease, and are amortised to expense over the period during which the Council isexpected to benefit from the use of the leased assets. Lease payments are allocatedbetween interest expense and reduction of the lease liability, according to the interest rateimplicit in the lease. In respect of operating leases, where the lessor substantially retains allof the risks and benefits incident to ownership of the leased items, lease payments arecharged to expense over the lease term.13 GST ImplicationsIn accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax”• Receivables and Creditors include GST receivable and payable.• Except in relation to input taxed activities, revenues and operating expenditures excludeGST receivable and payable.• Non-current assets and capital expenditures include GST net of any recoupment.• Amounts included in the Statement of Cash Flows are disclosed on a gross basis.14 Comparative InformationComparative information has been reclassified to be consistent with the current yeardisclosure of equivalent information in accordance with AIFRS.15 New Accounting StandardsCertain new accounting standards and UIG interpretations have been published that are notmandatory for the 30 June 2007 reporting period.• AASB 7 Financial Instruments: Disclosures and AASB 2005-10 Amendments to AASB 132, AASB 101, AASB114, AASB 117, AASB 133, AASB 139, AASB1, AASB4 AASB 1023 & AASB 1038• AASB 2006-1 Amendments to AASB 121• AASB 2006-3 Amendments to AASB 1045• AASB 2006-4 Amendments to AASB 134• AASB 2007-1 Amendments to AASB 2 arising from AASB Interpretation 11• AASB 2007-2 Amendments to AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 &AASB 139 arising from AASB Interpretation 12• AASB 8 Operating Segments and AASB 2007-3 Amendments to AASB 5, AASB 6, AASB 102, AASB 107,AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038 arising from AASB 8• AASB 2007-4 Amendments to AASB 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120,121, 127, 128, 129, 130, 131, 132, 133, 134, 136, 137, 138, 139, 141, 1023 & 1038 arising from ED 151 andOther Amendments• Interpretation 10 Interim Financial Reporting and Impairment• Interpretation 11 AASB 2 – Group and Treasury Share Transactions• Interpretation 12 Service Concession Arrangements• Interpretation 129 Disclosure – Service Concession ArrangementsCouncil is of the view that none of the above new standards or interpretations will affect anyof the amounts recognised in the financial statements, but that they may impact certaininformation otherwise disclosed.12

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 2 – REPORTING BY FUNCTIONRevenues, Expenses and Assets have been directly attributed to the following functions & activities.REVENUES EXPENSES OPERATING RESULTTOTALGRANTS ASSETS HELDINCLUDED (CURRENT &ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL IN REVENUES NON-CURRENT)2007 2006 2007 2006 2007 2006 2007 2006 2007 2006$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Assets & Managed Facilities 1,029 1,025 5,592 5,110 (4,563) (4,085) - - 63,382 53,861City Development 782 596 5,266 5,913 (4,484) (5,317) 69 49 322 217Civil Operations 10,819 10,583 11,449 9,854 (630) 729 2,807 1,278 325,452 303,892Corporate Finance, Risk & Procurement 40,419 40,321 5,985 5,524 34,434 34,797 7,792 9,674 1,307 1,185Executive Management 59 28 2,707 1,972 (2,648) (1,944) 24 23 711 638Industry Development & Employment Generation 225 641 691 1,143 (466) (502) 170 593 2,181 2,026Lifelong Learning 1,147 1,305 1,846 1,957 (699) (652) 622 785 1,668 1,544Parks & Open Spaces 3,305 587 7,793 7,843 (4,488) (7,256) 20 39 13,333 10,145People Services & Knowledge Management 353 352 4,171 3,561 (3,818) (3,209) - 15 3,260 3,046Social Planning & Community Development 3,808 2,174 4,969 4,524 (1,161) (2,350) 2,813 1,270 9,560 8,971Urban Regeneration 5 2 158 13 (153) (11) - - 263 237TOTALS 61,951 57,614 50,627 47,414 11,324 10,200 14,317 13,726 421,439 385,762Represented by:Operating Revenues 49,401 46,379 49,401 46,379Operating Expenditure 50,627 47,414 (50,627) (47,414)Significant Items 1,747 1,747Net Gain / (Loss) on Sale of Assets 645 718 645 718Amounts Specifically Received for New or Upgraded Assets 2,046 4,310 2,046 4,310Physical Resources Received Free of Charge 8,112 6,207 8,112 6,207TOTALS 61,951 57,614 50,627 47,414 11,324 10,20013

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 2 – REPORTING BY FUNCTION cont.Components of FunctionsThe activities relating to Council functions are as follows:Assets & Managed FacilitiesIncludes strategic asset management; managed recreation facilities; management and maintenance ofCouncil’s fleet; management and maintenance of Council’s buildings and sports clubs; customerservice and community inspectors.City DevelopmentIncludes strategic town planning and policy; building and planning assessment and advice; wastemanagement and household rubbish collection; food, health and sanitation management andenvironmental policy and planning.Civil OperationsIncludes strategic water and transportation management; technical design and engineering services;asset construction and asset maintenance.Corporate Finance, Risk & ProcurementIncludes corporate management; long term financial planning; accounting services; rates and revenuemanagement; procurement; contracts management and emergency management.Executive ManagementIncludes strategic leadership; community engagement; governance; public relations andcommunications.Industry Development & Employment GenerationIncludes strategic economic planning; supply chain development and business network building.Lifelong LearningIncludes building strategic partnerships and models for community learning; building communityparticipation in the workforce; child care centre; civic centre theatre and function facilities.Parks & Open SpacesIncludes strategic parks, sports fields and open space management; parks, sports fields and openspace maintenance; verge maintenance; landscape and open space design; landscape and street treemaintenance; roadside rubbish collection and street sweeping; playgrounds; weed and pest control.People Services & Knowledge ManagementIncludes corporate management; knowledge management; records management; informationtechnology; payroll and people services.Social Planning & Community DevelopmentIncludes strategic social planning; aged care services; grenville community hub; disability accessplanning; northern sound system; community grants; crime prevention; graffiti prevention; immunisation;community, cultural and aboriginal/torres strait islander programs; community food coops; libraryservices and mobile library.Urban RegenerationIncludes major urban regeneration project management; coordination, communication and negotiationwith stakeholders and community engagement.14

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 3 – REVENUES2007 2006Note $000’s $000’sRates RevenuesGeneral Rates 33,142 30,416Less: discretionary rebates, remissions and write offs (2,766) (1,821)30,376 28,595Other RatesNatural Resources Management Levy 484 426484 426Other ChargesPenalties for late payment 181 163181 16331,041 29,184Statutory ChargesDevelopment Act fees 6 12Town planning fees 630 458Animal registration fees & fines 305 292Parking fines & expiation fees 159 128Other registration fees 99 85Other fines, penalties & expiations 77 491,276 1,024User ChargesGrave digging 5 3Child Care Centre fees 223 225Playford Food Cooperatives 289 229Theatres & Civic Centre hire 297 278Hall & equipment hire 400 133Home & aged care 308 302Library 34 41Immunisation 16 44Sundry 109 1251,681 1,380Investment IncomeInterest on investmentsLocal Government Finance Authority 409 260Banks & other 200 81Loans to community groups 3 3612 344ReimbursementsPrivate works - 7Other 410 714410 72115

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 3 – REVENUES cont.2007 2006Note $000’s $000’sOther RevenueInsurance & other recoupments 264 251Sundry 83 434347 685Grants, Subsidies & ContributionsAmounts specifically for new or upgraded assets 2,046 4,310Other grants, subsidies & contributions 13,914 12,96615,960 17,276The functions to which these grants relate are shown in Note 2.Sources of grantsCommonwealth Government 3,479 4,574State Government 10,838 9,152Other 1,643 3,55015,960 17,276Conditions over grants & contributionsGrants and contributions which were obtained on the condition that they be expended for specifiedpurposes or in a future period, but which are not yet expended in accordance with those conditions,are as follows:Unexpended at end of previous reporting period 2,236 1,825Less: revenues received in previous reporting period expendedduring the current reporting periodHome Assist 896 618Northern Sound System 1,170 -Value Adding Adelaide Plains 135 404Waterproofing Northern Adelaide 142 -Sundry 3,161 2,9675,504 3,989Plus: revenues received in the current reporting period but not yetexpended in accordance with their conditionsHome Assist 897 824Northern Sound System 670 500Value Adding Adelaide Plains - 457Angle Vale / Heaslip Road 1,010 -Curtis Road 963 -Davoren Road 1,200 -Waterproofing Northern Adelaide 581 -Sundry 3,440 2,6198,761 4,400Unexpended at end of reporting period 9 5,493 2,236Net increase (decrease) in amounts received in advance in thecurrent reporting period3,257 411Physical Resources Received Free of ChargeLand & Improvements 2,475 2,150Roads & Footpaths 3,405 2,745Stormwater Drainage 1,973 1,104Library Assets 259 2088,112 6,20716

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 4 – EXPENSES2007 2006Note $000’s $000’sEmployee CostsSalaries & wages 15,810 13,634Employee leave expenses 2,150 1,929Superannuation 16 1,427 1,360Workers Compensation insurance 629 705Other 539 591Less: Capitalised & distributed costs (885) (650)19,670 17,569Materials, Contracts & Other ExpensesPrescribed expensesAuditor’s remuneration 13 12Bad & doubtful debts 21 -Elected Members’ expenses 263 144Election expenses 129 -Operating Lease Rentals – non cancellable 268 342693 499Other materials, contracts & expensesContractors 3,899 3,277Energy 1,171 1,135Waste Management 3,570 3,631Maintenance 2,127 1,326Legal expenses 171 207Levies paid to government- Natural Resources Management Levy 485 416- Other Levies 80 67Parts, accessories & consumables 2,023 1,955Professional services 644 1,020Sundry 3,247 4,52517,417 17,55918,110 18,058Finance CostsInterest on short-term borrowings - 2Interest on loans 2,394 2,0712,394 2,073DepreciationDepreciationBuildings 973 870Plant & Equipment 2,499 2,192Infrastructure 6,615 5,505Furniture & Fittings 366 44010,453 9,007NOTE 5 – ASSET DISPOSALSInfrastructure, Property, Plant & EquipmentProceeds from disposal 1,483 1,464Less: Carrying amount of assets sold 838 746Net gain (loss) on disposal or revaluation of assets 645 71817

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 6 – CURRENT ASSETS2007 2006Note $000’s $000’sCash & Cash EquivalentsCash on hand & at bank 9 71Deposits at call 7,268 3,2177,277 3,288Trade & Other ReceivablesRates – General & other 1,267 1,068Accrued revenues 122 66Debtors – General 836 4,355Debtors – Other 98 87GST Recoupment 223 13Loans to community organisations 5 5Sundry 34 402,585 5,634Less: Allowances for impairment loss (53) (52)2,532 5,582Other Current AssetsPrepayments 189 120189 120InventoriesStores & materials 105 100Trading stock 22 27127 127NOTE 7 – NON-CURRENT ASSETSFinancial AssetsLoans to community organisations 61 6661 66Less: Allowances for impairment loss - -61 66Equity Accounted SubsidiariesNorthern Adelaide Waste Management Authority (651) (663)Gawler River Flood Mitigation Authority 3,646 1,285Waterproofing Northern Adelaide Regional Subsidiary 12 -3,007 622Other Non-current AssetsCapital works in progress 1,875 3,9371,875 3,93718

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 8 – INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENTValuation of AssetsOn transition to AIFRS, Council elected pursuant to AASB 1.19 to retain a previously establisheddeemed cost under Generally Accepted Accounting Principles (GAAP) as its deemed cost for thepurposes of AIFRS.Plant, Furniture & EquipmentPursuant to Council’s election, these assets are recognised on the cost basis.LandPursuant to Council’s election, freehold land and land over which Council has control, but does nothave title, is recognised on the revaluation basis.The inventory of Land was verified by council staff and was valued, as at 30 June 2005, by PetaRowe, BBus (prop), AAPI and Carin Meier, BBus (prop), GAPI of Maloney Field Services. CertifiedPracticing Valuer of Asset Valuation and Consulting Pty. Ltd. The revaluation values have beenassessed in accordance with the guidelines established by the South Australian Local GovernmentAccounting Committee, and specifically to satisfy Council’s obligation to comply with AAS27Financial Reporting by Local Governments. The revaluation has been met on the basis of marketvalues.Land ImprovementsLand improvements are recognised on the revaluation model and were valued by Council staff atcurrent replacement cost using unit rates and useful lives applicable to asset management practicesemployed by Council at 30 June 2006. All acquisitions made after the respective dates of valuationare recorded at cost.As at 30 June 2007 Council staff undertook a review of unit rates and other data used in thevaluation of land improvement assets. This was undertaken to ensure that the carrying amount ofthe assets does not differ materially from that which would be determined using fair value at thereporting date. No change to the valuation of land improvements assets was made as a result of thisreview.BuildingsPursuant to Council’s election, buildings and other structures are recognised on the revaluationmodel at current replacement cost. Additions are recognised at cost.The inventory of Buildings was verified by council staff and was valued, as at 30 June 2005, PetaRowe, BBus (prop), AAPI and Carin Meier, BBus (prop), GAPI of Maloney Field Services. Therevaluation values have been assessed in accordance with the guidelines established by the SouthAustralian Local Government Accounting Committee, and specifically to satisfy Council’s obligationto comply with AAS27. The revaluation has been met on the basis of depreciated replacementvalues. Calculation of this value was determined by the current replacement cost of the asset less,where applicable, accumulated depreciation calculated on a basis to reflect the already consumedor expired service potential.InfrastructurePursuant to Council’s election, infrastructure assets are recognised on the revaluation model.Footpath, Kerbing, Road, Bridge, and Storm water assets were valued by Council staff during theyear ended 30 June 2006 using unit rates and useful lives applicable to asset managementpractices employed by Council. All acquisitions made after the respective dates of valuation arerecorded at cost.The asset inventory, unit rates, useful lives and valuation methodology were reviewed by JeffRoorda, BEng (Hons) MIE Aust and David Hair, BEng of Jeff Roorda and Associates.19

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 8 – INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT cont.As at 30 June 2007 Council staff undertook a review of unit rates and other data used in thevaluation of infrastructure assets. This was undertaken to ensure that the carrying amount of theassets does not differ materially from that which would be determined using fair value at thereporting date. These revised unit rates were then independently reviewed by Jeff Roorda, BEng(Hons) of Jeff Roorda and Associates. As a result of the review the valuation of infrastructure assetswas increased by a net amount of $17,687,478.INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT MOVEMENT SCHEDULEAT FAIRVALUE2006$'000AT COST ACCUM DEP'N CARRYINGAMOUNTAT FAIRVALUEAT COST2007$'000ACCUM DEP'NCARRYINGAMOUNTLand 109,226 4,804 - 114,030 109,165 7,550 - 116,715Buildings 63,651 960 (31,644) 32,967 63,651 6,735 (32,617) 37,769Infrastructure 325,880 11,582 (125,240) 212,222 357,905 14,816 (134,611) 238,110Equipment 1,894 23,360 (14,401) 10,853 1,117 27,285 (16,900) 11,502Furniture & Fittings 455 4,925 (3,432) 1,948 455 5,618 (3,798) 2,275TOTAL INFRASTRUCTUREPROPERTY, PLANT &EQUIPMENT501,106 45,631 (174,717) 372,020 532,293 62,004 (187,926) 406,3712006 CARRYING AMOUNT MOVEMENTS DURING YEAR2007$'000$'000$'000CARRYINGCARRYINGAdditions Disposals Depreciation Impairment Blank Net RevaluationAMOUNTAMOUNTLand 114,030 2,746 (61) - - - - 116,715Buildings 32,967 5,775 - (973) - - - 37,769Infrastructure 212,222 14,816 - (6,615) - - 17,687 238,110Equipment 10,853 3,925 (777) (2,499) - - - 11,502Furniture & Fittings 1,948 693 (366) - - - 2,275TOTAL INFRASTRUCTUREPROPERTY, PLANT &EQUIPMENT372,020 27,955 (838) (10,453) - - 17,687 406,37120

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 9 – LIABILITIES2007 2006Note $000’s $000’sCurrent Non-current Current Non-currentTrade & Other PayablesGoods & services 6,228 - 6,214 -Payments received in advance 3 5,493 - 2,236 -Accrued expenses- Employee entitlements 1,914 - 1,699 -- Other 341 - 408 -Deposits, retentions & bonds 85 - 7 -Other 215 - 1,495 -14,276 - 12,059 -ProvisionsEmployee entitlements (including oncosts)1,598 539 915 5291,598 539 915 529BorrowingsBank overdraft 286 - - -Loans 4,594 29,769 4,669 26,2244,880 29,769 4,669 26,224All interest bearing liabilities are secured over the future revenues of the Council.NOTE 10 – RESERVESNote1 July2006NetIncrements(decrements)Transferson sale30 June 2007$000’s $000’s $000’s $000’sAsset Revaluation ReserveLand 54,145 - - 54,145Buildings 5,425 - - 5,425Infrastructure 56,402 17,687 - 74,089Plant & Equipment 1,175 - - 1,175Furniture & Fittings 633 - - 633117,780 17,687 - 135,4672006 totals 61,780 56,000 - 117,780Note1 July2006Transfers toreserveTransfersfromReserve30 June 2007Other ReservesUncompleted Works 2,255 1,724 (2,255) 1,724Developer Contributions 2,649 1,197 (496) 3,3504,904 2,921 (2,751) 5,0742006 totals 3,464 3,086 (1,646) 4,90421

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 10 – RESERVES cont.Purposes of ReservesAsset Revaluation ReserveThe asset revaluation reserve is used to record increments and decrements arising from changes in fairvalue of non-current assets and available-for-sale financial assets.Uncompleted Works ReserveThe Uncompleted Works Reserve is used to hold funds received but not yet spent in relation tospecifically funded programs and uncompleted capital works. These funds are released from reserveupon their expenditure.Developer Contributions ReserveIf developers elect to make a cash contribution to Council in lieu of installing a physical asset, the cashmust be paid to Council at the time of processing the planning application. Council then set this moneyaside in the Developer Contributions Reserve for construction of the assets after development iscompleted.NOTE 11 – RECONCILIATION TO CASH FLOW STATEMENT11a Reconciliation of CashCash Assets comprise highly liquid investments with short periods to maturity subject to insignificant riskof changes of value. Cash at the end of the reporting period as shown in the Cash Flow Statement isreconciled to the related items in the Statement of Financial Position as follows:2007 2006Note $000’s $000’sTotal cash & cash equivalents 6 7,277 3,288Less: Short-term borrowings 9 (286) -Balance per Cash Flow Statement 6,991 3,28811b Reconciliation of Change in Net Assets to Cash from Operating ActivitiesNet Surplus (Deficit) 11,324 10,200Non-cash items on Income StatementDepreciation, Amortisation & Impairment 10,453 9,007(Increase) decrease in equity accounted subsidiaries (1,867) 893Net increase (decrease) in unpaid employee benefits 908 -Change in allowances for under-recovery 1 -Non-cash asset acquisitions (8,112) (6,207)Grants for capital acquisitions treated as investing activity (2,046) (4,311)Net (gain) loss on disposal of assets (645) (717)10,016 8,865Changes in Net Current AssetsNet (increase) decrease in receivables 2,980 (2,739)Net (increase) decrease in inventories - 13Net (increase) decrease in other current assets - 205Net increase (decrease) in trade & other payables 2,002 1,729Net increase (decrease) in other provisions - (64)Net Cash provided by (used in ) operations 14,998 8,00911c Non-cash Financing & Investing ActivitiesPhysical resources received free of charge 3 8,112 6,207Amounts recognised on the Income Statement 8,112 6,20722

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 200711d Financing ArrangementsUnrestricted access was available at balance date to the following lines of credit:- Bank overdraft- Corporate credit cards- $4 million cash advance debenture with the Local Government Financing AuthorityThe bank overdraft and cash advance debenture facilities may be drawn at any time and may beterminated by the bank or Local Government Financing Authority without notice.NOTE 12 – FINANCIAL INSTRUMENTSCash at Bank, Deposits at Call, Short TermDepositsReceivables – Rates and associated charges(including legal fees and fines)Receivables – Fees and other chargesReceivables – Other levels of GovernmentLiabilities – Creditors and AccrualsLiabilities – Interest Bearing LoansLiabilities – Finance LeasesAccounting PolicyCarried at lower of cost and net realisable value; interest is recognised when earned.Terms and ConditionsDeposits are returning interest rates between 4.75% and 5.9% (2006: 5.25% and 5.5%).Short term deposits have an average maturity of 1 day and an average interest rate of5.88% (2006: 1 day 5.26%).Carrying AmountApproximates fair value due to short term to maturityAccounting PolicyCarried at nominal value less any allowance for doubtful debts. An allowance fordoubtful debts is recognised (and re-assessed annually) when collection in full is nolonger probable.Terms and ConditionsSecured over the subject land, arrears attract interest of 2% (2006: 2%). AlthoughCouncil is not materially exposed to any individual debtor, credit risk exposure isconcentrated within the Council boundaries in the State.Carrying AmountApproximates fair value (after deduction for any allowances).Accounting PolicyCarried at nominal value less any allowance for doubtful debts. An allowance fordoubtful debts is recognised (and re-assessed annually) when collection in full is nolonger probable.Terms and ConditionsUnsecured, and do not bear interest. Although Council is not materially exposed to anyindividual debtor, credit risk exposure is concentrated within the Council boundaries.Carrying AmountApproximates fair value (after deduction for any allowances).Accounting PolicyCarried at nominal value.Terms and ConditionsAmounts due have been calculated in accordance with the terms and conditions of therespective programs following advice of approvals, and do not bear interest. Allamounts are due by Departments and Agencies of the Governments of theCommonwealth and State.Carrying AmountApproximates fair value.Accounting PolicyLiabilities are recognised for amounts to be paid in the future for goods and servicesreceived, whether or not billed to the Council.Terms and ConditionsNormally settled on 30 day terms.Carrying AmountApproximates fair value.Accounting PolicyCarried at the principal amounts. Interest is charged as an expense as it accrues.Terms and ConditionsSecured over future revenues, loans are payable in equal six monthly instalments ofprincipal and interest; interest is charged at fixed rates between 5.55% and 6.92%(2006: 5.55% and 13.85%).Carrying AmountApproximates fair value.Accounting PolicyAccounted for in accordance with AASB 117.23

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 12 – FINANCIAL INSTRUMENTS cont.Liquidity AnalysisFloating Fixed interest maturing in Non-2007Interest < 1 year > 1 year > 5 years interest TotalRate > 5 years bearingFinancial Assets $'000 $'000 $'000 $'000 $'000 $'000Fair Value through P&LCash Assets - 7,268 - - 9 7,277Loans & ReceivablesReceivables - 5 61 - 2,405 2,471Total - 7,273 61 - 2,414 9,748Weighted Average Interest Rate5.88% 3.70%Financial LiabilitiesPayables - - - - 12,021 12,021Short-term Borrowings 286 - - - - 286Borrowings - 636 5,290 28,437 - 34,363Total 286 636 5,290 28,437 12,021 46,670Weighted Average Interest Rate14.70% 6.52% 6.64% 6.45%NET FINANCIAL ASSETS(LIABILITIES)(286) 6,637 (5,229) (28,437) (9,607) (36,922)Floating Fixed interest maturing in Non-2006Interest < 1 year > 1 year > 5 years interest TotalRate > 5 years bearingFinancial Assets $'000 $'000 $'000 $'000 $'000 $'000Fair Value through P&LCash Assets - 3,217 - - 71 3,288Loans & ReceivablesReceivables - 5 66 - 5,511 5,582Total - 3,222 66 - 5,582 8,870Weighted Average Interest Rate5.80% 3.70%Financial LiabilitiesPayables - - - - 9,952 9,952Borrowings - 938 5,355 24,600 - 30,893Total - 938 5,355 24,600 9,952 40,845Weighted Average Interest Rate7.73% 6.47% 6.41%NET FINANCIAL ASSETS(LIABILITIES)- 2,284 (5,289) (24,600) (4,370) (31,975)Credit Risk ExposuresCredit risk represents the loss that would be recognised if other entities/ratepayers failed to performas contracted. The maximum credit risk on financial assets of the Council is the carrying amount, netof any provision for doubtful debts. Except as detailed in Notes 6 & 7 in relation to individual classesof financial assets, exposure is concentrated within the Council’s boundaries, and there is no materialexposure to any individual debtor.24

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 12 – FINANCIAL INSTRUMENTS cont.Reconciliation of Financial Assets & LiabilitiesNote 2007 2006$000’s $000’sNet financial assets from above- Financial Assets 9,748 8,870- Financial Liabilities (46,670) (40,845)(36,922) (31,975)Non-financial assets & liabilities- Accrued revenues 122 66- Prepayments 189 120- Inventories 127 127- Equity accounted subsidiaries 3,007 622- Property, Plant & Equipment 406,371 372,020- Other assets 1,875 3,937- Accrued expenses (2,255) (2,107)- Provisions (2,137) (1,444)407,299 373,341Net Assets per Balance Sheet 370,377 341,366Net Fair ValueAll carrying values approximate fair value for all recognised financial instruments. With the exceptionof investments, there is no recognised market for the financial assets of the Council.NOTE 13 – FINANCIAL INDICATORSThese Financial Indicators have been calculated in accordance with Information Paper 9 - LocalGovernment Financial Indicators prepared as part of the LGA Financial Sustainability Program for theLocal Government Association of South Australia. Detailed methods of calculation are set out in theSouth Australian Model Financial Statements.2007 2006Operating Surplus $ 521,154 ($ 1,034,713)Being the operating surplus (deficit) before capital amountsOperating Surplus RatioOperating Surplus (Deficit) / Rates Revenue excl. NRM levy 1.7% (3.6%)This ratio expresses the operating surplus (deficit) as a percentageof rates revenue excluding the NRM levyNet Financial Liabilities $ 41,003,200 $ 35,339,769Net financial liabilities are defined as total liabilities less financialassets (excluding equity accounted subsidiaries)Net Financial Liabilities RatioNet financial liabilities / Operating Revenue excl. NRM levy 80.9% 76.9%Interest Coverage RatioNet interest expense / Operating Revenue excl. NRM levy 3.6% 3.8%Asset Sustainability RatioAsset Renewals / Depreciation Expense 96.5% 87.9%Asset renewals is defined as capital expenditure on the renewaland replacement of existing assets, and excludes new capitalexpenditure on the acquisition of additional assets25

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 13 – FINANCIAL INDICATORS cont.Asset Consumption RatioCarrying Value of Depreciable Assets / Gross Value of DepreciableAssetsTotal carrying value of depreciable assets divided by total reportedvalue of depreciable assets before accumulated depreciation2007 200660.7% 59.6%NOTE 14 – UNIFORM PRESENTATION OF FINANCESThe Local Government Association’s General Meeting in March 2006 resolved that a high levelsummary of both operating and capital investment activities of each council be prepared on a uniformand consistent basis, thereby enabling more meaningful comparisons between councils.It also is intended that annual budgets and long-term financial plans be summarised on the samebasis.A feature of the arrangement is that it facilitates the reporting of a standard set of key financialindicators of the Council’s financial sustainability – all of which are shown in Note 14 above.2007 2006Note $000’s $000’sOperating Revenues 49,401 46,379less Operating Expenses (50,627) (47,414)plus Significant Items 19 1,747 -Operating Surplus (Deficit) 521 (1,035)less net outlays on existing assets- Capital expenditure on renewal / replacement of existing10,083 7,916assets- Depreciation, Amortisation & Impairment (10,453) (9,007)- Proceeds from sale of replaced assets (1,483) (1,477)(1,853) (2,568)less net outlays on new and upgraded assets- Capital expenditure on new and upgraded assets 7,698 6,221- Amounts received specifically for new and upgraded assets (2,046) (4,311)5,652 1,910Net lending (borrowing) for financial year (3,278) (377)NOTE 15 – OPERATING LEASESLease providing revenue to the CouncilCouncil owns various buildings, plant and other facilities that are available for hire or lease (on a noncancellablebasis wherever practicable) in accordance with the published revenue policy. Rentalsreceived from such leases are disclosed as hall & equipment hire in Note 3.Lessees’ commitments under all non-cancellable lease agreements, including those relating toInvestment Property, are as follows:Not later than 1 year 315 271Between 1 and 5 years 646 647Later than 5 years 447 4171,408 1,33526

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 15 – OPERATING LEASES cont.Lease payment commitments of CouncilCouncil has entered into non-cancellable operating leases for various items of computer and otherplant and equipment.Contingent rental payments exist in relation to the lease of one grader if utilisation exceeds 250 hoursduring any month. No contingent rentals were paid during the current or previous reporting periods.No lease imposes any additional restrictions on Council in relation to additional debt or furtherleasing.Leases in relation to computer and office equipment permit Council, at expiry of the lease, to elect tore-lease, return or acquire the equipment leased.No lease contains any escalation clause. Commitments under non-cancellable operating leases thathave not been recognised in the financial statements are as follows:2007 2006Note $000’s $000’sNot later than 1 year 443 110Between 1 and 5 years 1,030 139Later than 5 years 100 -1,573 249NOTE 16 – SUPERANNUATIONCouncil makes employer superannuation contributions in respect of its employees to the LocalGovernment Superannuation Scheme (the Scheme). The Scheme has two categories ofmembership, each of which is funded differently.The Scheme's accumulation category receives both employer and employee contributions on aprogressive basis. Employer contributions are normally based on a fixed percentage of employeeearnings (9% required under Superannuation Guarantee Legislation). No further liability accrues tothe employer as the superannuation benefits accruing to employees are represented by their share ofthe net assets of the Scheme.The Scheme's Defined Benefit Plan is a multi-employer sponsored plan. As the Scheme's assets andliabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefitliabilities, assets and costs between employers. As provided under AASB 119.32(b), Council doesnot use defined benefit accounting for these contributions.Council makes employer contributions to the defined benefit category of the Scheme at ratesdetermined by the Trustee on the advice of the Scheme's Actuary. On the basis of the results of themost recent full actuarial investigation conducted by the Scheme's actuary, L C Brett, BSc., FIA,FIAA, of Brett and Watson Pty Ltd as at 30 June 2005, the Trustee has determined that the currentfunding arrangements are adequate for the expected Defined Benefit Plan liabilities.27

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 17 – JOINT VENTURES AND ASSOCIATED ENTITIESSection 43 of the Local Government Act 1999, provides that Councils may establish a regionalsubsidiary to carry out joint projects, functions or activities of the Council.Northern Adelaide Waste Management Authority (NAWMA)The Northern Adelaide Waste Management Authority manages recycling, waste collection and wastedisposal for the City of Playford, City of Salisbury and Town of Gawler. Contributions are madetowards waste collection, disposal and kerbside recycling and administration.The City of Playford has a 29.32% equity interest in the Northern Adelaide Waste ManagementAuthority (NAWMA). NAWMA has loan borrowings of $5.89M as at 30 June 2007 included as noncurrent liabilities. The City of Playford's equity in borrowings of $5.89M is $1.73M.2007 2006Note $000’s $000’sMovement in Investment in NAWMAOpening balance (663) 446Share in operating result 14 (1,054)Adjustment to equity share (2) (55)Share in equity of NAWMA (651) (663)Councils respective interests in NAWMA are:Interest in outputs of NAWMA 29.32% 29.24%Ownership interest in NAWMA 29.32% 29.24%Proportion of voting power in NAWMA 33.33% 33.33%Gawler River Flood Mitigation Authority (GRFMA)The Gawler River Floodplain Management Authority was established in August 2002 to construct,operate and maintain flood mitigation infrastructure in the Gawler River area. Contributions are madeto the administrative expenses of the Authority.The City of Playford has a 34.70% equity interest in the Gawler River Floodplain ManagementAuthority as detailed below.Movement in Investment in GRFMAOpening balance 1,285 1,070New capital contributions 517 139Share in operating result 97 194Adjustment to equity share 19 1,747 (118)Share in equity of GRFMA 3,646 1,285Councils respective interests in GRFMA are:Interest in outputs of GRFMA 34.70% 34.68%Ownership interest in GRFMA 34.70% 34.68%Proportion of voting power in GRFMA 11.76% 11.76%Waterproofing Northern Adelaide Regional Subsidiary (WNARS)The Waterproofing Northern Adelaide Regional Subsidiary was established by the Cities of Playford,Salisbury and Tea Tree Gully in October 2006. This regional subsidiary is responsible for receivingand disbursing the Commonwealth funding granted towards the Waterproofing Northern Adelaideproject, an initiative to provide infrastructure to integrate stormwater, groundwater, wastewater anddrinking water systems in the northern Adelaide region.The City of Playford has a 33.33% equity interest in the Waterproofing Northern Adelaide RegionalSubsidiary as detailed below.28

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 17 – JOINT VENTURES AND ASSOCIATED ENTITIES cont.2007 2006Note $000’s $000’sMovement in Investment in WNARSOpening balance - -Share in operating result 12 -Adjustment to equity share - -Share in equity of WNARS 12 -Councils respective interests in WNARS are:Interest in outputs of WNARS 33.33% n/aOwnership interest in WNARS 33.33% n/aProportion of voting power in WNARS 33.33% n/aNOTE 18 – CONTINGENT ASSET & LIABILITIES NOT RECOGNISED IN THE STATEMENT OFFINANCIAL POSITIONContingent AssetsSince July 1998, in accordance with an indenture between the South Australian Housing Trust(SAHT) and Council, Council have been making an annual payment into a trust account establishedby the SAHT. In collaboration between the parties, total payments to the 30 th June 2007 of $1,350,000are to be used in providing capital works to assist in refurbishment of the areas in which SAHT housesare concentrated. At the time of expenditure Council assumes ownership of the assets.Contingent LiabilitiesPotential Insurance LossesCouncil is a multi-purpose organisation providing a large range of building, parks infrastructure,playgrounds and other facilities accessible to the public. At any time, it is likely that claims will havebeen made against Council that remain unsettled.Council insures against all known insurable risks using a range of insurance policies, each of which issubject to a deductible "insurance excess", the amount of which varies according to the class ofinsurance.Council has recognised the potential losses arising from claims known at reporting date based onaverage historical net cost (including insurance excess) of similar types of claims. Other potentialclaims not reported to Council may have existed at reporting date.Legal ExpensesCouncil is the planning consent authority for its area under the Development Act 1993 (as amended).Pursuant to that Act, certain persons aggrieved by a planning decision of the Council may appeal. Itis normal practice that parties bear their own legal costs. At the date of these reports, Council hadnotice of 1 appeal against planning decisions made prior to reporting date. All known costs havebeen recognised, but the amount of further costs cannot be known until the appeals are determined.NOTE 19 – SIGNIFICANT ITEMSEquity Adjustment arising from Gawler River Flood Mitigation AuthorityIncluded within the Operating Surplus (Deficit) before capital amounts is a significantly large increaseof $1,844,105 in the City of Playford’s equity share of the Gawler River Flood Mitigation Authority.Of this $1,844,105 increase in equity, $96,982 is a result of the operations of the Gawler River FloodMitigation Authority for the year ended 30 June 2007 and has been disclosed on the IncomeStatement as operating income.The remaining $1,747,123 increase in equity is as a result of the growth in assets of the Gawler RiverFlood Mitigation Authority and as such, given the significance of the amount, has been disclosedseparately on the Income Statement.29

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 20 – ADOPTION OF 2007 MODEL FINANCIAL STATEMENTSAs a result of the endorsement of the 2007 South Australian Model Financial Statements for LocalGovernment, the amounts shown in the comparative 2006 figures in these financial statements differfrom the amounts shown in Council’s 2006 Annual Financial Statements.The amounts shown in the 2006 comparatives in these financial statements are reconciled toCouncil’s 2006 financial statements as follows:Reconciliation of 2006 Income Statement for year ending 30 June 2006 with 2006 comparativeIncome Statement for year ending 30 June 2007.Note 2006 Adjustments 2006IncomeComparative$000’s $000’s $000’sRates 29,184 - 29,184Statutory charges 1,024 - 1,024User charges (a) 1,094 286 1,380Grants, subsidies & contributions (b) 11,464 1,502 12,966Interest income 344 - 344Reimbursements 721 - 721Commercial Activity income (a) 286 (286) -Other revenues 685 - 685Share of profits - associates and joint ventures 75 - 75Gain (loss) on disposal or revaluation of assets (c) 718 (718) -Total Revenues 45,595 784 46,379ExpensesEmployee costs (e) 16,870 699 17,569Materials, contracts & other expenses (d,e) - 18,058 18,058Contractual services (d) 9,005 (9,005) -Materials (d) 4,604 (4,604) -Finance costs 2,073 - 2,073Depreciation 9,007 - 9,007Other expenses (d,e) 5,148 (5,148) -Share of losses - associates and joint ventures 707 - 707Total Expenses 47,414 - 47,414Operating Surplus (Deficit) before capitalamounts. (1,819) 784 (1,035)Net gain (loss) on disposal or revaluation of assets (c) - 718 718Amounts specifically for new or upgraded assets (b) 5,812 (1,502) 4,310Physical resources received free of charge 6,207 - 6,207Net Surplus (Deficit) 10,200 - 10,200(a) Commercial activity revenue now classified with user charges in line with 2007 model financialstatements(b) Grant revenue previously recognised as capital amounts now recognised as operating revenueunder 2007 model financial statements. Roads to Recovery $784k, black spot funding $180k,developer contributions $538k(c) Gain (loss) on disposal now classified below operating surplus (deficit) before capital amounts in linewith 2007 model financial statements(d) Contractors, materials and other expenses now classified together in line with 2007 model financialstatements(e) Workers compensation expense $699k previously disclosed as other expenses now disclosed asEmployee costs under 2007 model financial statements30

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 20 – ADOPTION OF 2007 MODEL FINANCIAL STATEMENTS cont.Reconciliation of 2006 Balance Sheet prepared as at 30 June 2006 with 2006 comparativeBalance Sheet prepared as at 30 June 20072006 Adjustments312006Comparative$000’s$000’s $000’sCurrent AssetsCash and cash equivalents 3,288 - 3,288Trade and other receivables (a) 5,485 97 5,582Other current assets (a) 217 (97) 120Inventory 127 - 127Total Current Assets 9,117 - 9,117Non-Current AssetsFinancial assets (b) - 66 66Trade and other receivables (b) 66 (66) -Equity accounted subsidiaries 622 - 622Infrastructure, property, plant & equipment (c) - 372,020 372,020Other non-current assets (d) - 3,937 3,937Land (c,d) 114,082 (114,082) -Buildings (c,d) 35,782 (35,782) -Infrastructure (c,d) 213,251 (213,251) -Equipment (c,d) 10,895 (10,895) -Furniture and Fittings (c) 1,947 (1,947) -Total Non-Current Assets 376,645 - 376,645Total Assets 385,762 - 385,762Current LiabilitiesTrade and other payables 12,059 - 12,059Short-term provisions 915 - 915Short-term borrowings 4,669 - 4,669Total Current Liabilities 17,643 - 17,643Non-Current LiabilitiesLong-term provisions 529 - 529Long-term borrowings 26,224 - 26,224Total Non-Current Liabilities 26,753 - 26,753Total Liabilities 44,396 - 44,396Net Assets 341,366 - 341,366EquityAccumulated Surplus 218,682 - 218,682Asset Revaluation Reserve (e) - 117,780 117,780Reserves (e) 122,684 (117,780) 4,904Total Equity 341,366 - 341,366(a) Receivables previously shown as other current assets now shown as trade receivables.Infringements $41k, Insurance reimbursements $52k & Other receivables $4k(b) Trade receivables (non-current) renamed to financial assets under 2007 model financial statements(c) Fixed assets previously disclosed separately by category now disclosed as Infrastructure, Property,Plant & equipment under 2007 model financial statements(d) WIP disclosed as other non-current assets in line with 2007 model financial statements. Previouslyincluded within asset category totals. Land $52k, Buildings $2,814k, Infrastructure $1,029k andEquipment $42k(e) Asset revaluation reserve disclosed separately under 2007 model financial statements

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007NOTE 21 – CHANGES IN ACCOUNTING POLICYFurther to the changes disclosed in note 20 as a result of adopting the 2007 South Australian ModelFinancial Statements for Local Government, the City of Playford also made the following changes to itsAccounting policies for the 2006/2007 financial year.Recognition of Long Service Leave.From 2006/2007, the City of Playford recognises a Long Service leave liability from the first year ofemployment, on a discounted basis in line with AASB 119.Previously a Long Service leave liability (un-discounted) was only recognised for employees who hadserved 5 years of employment or more. This was on the basis that it was considered likely that anemployee who had been with the City of Playford for 5 years would remain until their Long Serviceleave was payable.The affect of this Accounting policy change, that now recognises a discounted Long Service leaveliability for all employees from first year of service, has been a net increase of $356k in the LongService leave liability disclosed at note 9.32

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 200733

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007CHIEF EXECUTIVE OFFICER’S STATEMENTI, Timothy Robert Sandford Jackson, Chief Executive Officer of the City of Playford, do hereby state that theFinancial Statements, including the notes to and forming part of the financial statements, of the City ofPlayford for the financial year ended 30 June, 2007 are to the best of my knowledge presented fairly and inaccordance with accounting procedures which have been maintained in accordance with the LocalGovernment Act 1999 and the Local Government (Financial Management) Regulations 1999 made under thatAct.34

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007CHIEF EXECUTIVE OFFICER’S STATEMENT OF INDEPENDENCE OF AUDITOR’S OF THECITY OF PLAYFORDI, Timothy Robert Sandford Jackson, confirm that, for the audit of the financial statements of theCity of Playford for the year ended 30 June 2007, Council’s Auditor, Dean Newbery and Partners,Chartered Accountants, have maintained their independence in accordance with the requirementsof the Local Government Act 1999 and the Local Government (Financial Management) Regulations1999 made under that ActThis statement is prepared in accordance with the requirements of Regulation 16A (2) LocalGovernment (Financial Management) Regulations 1999.35

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007CHIEF EXECUTIVE OFFICER’S STATEMENT OF INDEPENDENCE OF AUDITOR’S OF THENORTHERN ADELAIDE WASTE MANAGEMENT AUTHORITYI, Timothy Robert Sandford Jackson, confirm that, for the audit of the financial statements of theNorthern Adelaide Waste Management Authority for the year ended 30 June 2007, The Authority’sAuditor, Galpin, Engler, Bruins & Dempsey, Accountants Auditors & Business Consultants, havemaintained their independence in accordance with the requirements of the Local Government Act1999 and the Local Government (Financial Management) Regulations 1999 made under that ActThis statement is prepared in accordance with the requirements of Regulation 16A (2) LocalGovernment (Financial Management) Regulations 1999.36

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007CHIEF EXECUTIVE OFFICER’S STATEMENT OF INDEPENDENCE OF AUDITOR’S OF THEGAWLER RIVER FLOOD MITIGATION AUTHORITYI, Timothy Robert Sandford Jackson, confirm that, for the audit of the financial statements of theGawler River Flood Mitigation Authority for the year ended 30 June 2007, the Authority’s Auditor,HLB Mann Judd, Chartered Accountants, have maintained their independence in accordance withthe requirements of the Local Government Act 1999 and the Local Government (FinancialManagement) Regulations 1999 made under that ActThis statement is prepared in accordance with the requirements of Regulation 16A (2) LocalGovernment (Financial Management) Regulations 1999.37

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007CHIEF EXECUTIVE OFFICER’S STATEMENT OF INDEPENDENCE OF AUDITOR’S OF THEWATERPROOFING NORTHERN ADELAIDE REGIONAL SUBSIDIARYI, Timothy Robert Sandford Jackson, confirm that, for the audit of the financial statements of theWaterproofing Northern Adelaide Regional Subsidiary for the year ended 30 June 2007, TheSubsidiary’s Auditor, Dean Newbery and Partners, Chartered Accountants, have maintained theirindependence in accordance with the requirements of the Local Government Act 1999 and theLocal Government (Financial Management) Regulations 1999 made under that ActThis statement is prepared in accordance with the requirements of Regulation 16A (2) LocalGovernment (Financial Management) Regulations 1999.38

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007STATEMENT BY THE PRESIDING MEMBER OF THE CORPORATE GOVERNANCECOMMITTEEI, Phil Plummer, confirm that, for the audit of the financial statements of the City of Playford for theyear ended 30 June 2007, Council’s Auditor, Dean Newbery and Partners, Chartered Accountants,have maintained their independence in accordance with the requirements of the Local GovernmentAct 1999 and the Local Government (Financial Management) Regulations 1999 made under thatActThis statement is prepared in accordance with the requirements of Regulation 16A (2) LocalGovernment (Financial Management) Regulations 1999.39

City of PlayfordNotes to and forming part of the Annual Financial StatementsFor the year ended 30 June 2007This page has been intentionally left blank.40

Appendix 2:City of PlayfordRating Policy Statement2006/07

CITY OF PLAYFORDRATING POLICY STATEMENT 2006/2007INTRODUCTIONThis document sets out the policy of the City of Playford for setting and collecting rates fromits community. The main aspects covered by this policy are:Rates Charged• method used to value land• general rates• fixed charge• differential rates• residential• commercial• primary production• country townships• water catchment levyRate Collection• payment of rates• late payment of rates• non-payment of rates• remission and postponement of rates• rebate of ratesSTRATEGIC FOCUSIn determining a suitable rating policy the Council has considered the following:• “Playford Plan 2002-2012“• “City Plan 2006-2007”• “City of Playford 10 Year Financial Plan”• The Local Government Act 1999• The Local Government Amendment Act 2005In addition, during 1998/1999 Council undertook an extensive “Rating Policy ConsultationProcess”. This enabled Council to ascertain the impact of rates on the community and tointroduce a rating policy which equalised rates across the previous two amalgamated citieswhilst maintaining the broad principle of achieving fairness and equity in the distribution ofthe rate burden. The 2006/07 policy is based on the same key principles that wereestablished during the 1998/1999 Consultation Process.METHOD USED TO VALUE LANDAll land within a council area, except land specifically exempt (eg Crown land, Council ownedland), is rateable.Rates will be assessed against any piece or section of land subject to separate occupation.However, there may be exceptions granted for specific land use codes under Section 148 ofthe Local Government Act. This section of the Act provides that decisions in regards to thebasis on which rates are assessed must be made fairly and in accordance with principles andpractices that apply on a uniform basis across the area of Council. In these circumstances,subject to approval by Council, rates will be assessed based on land ownership.

The City of Playford has decided to continue to use Capital Value as the basis for valuingland within the Council area. This method values the land and all the improvements on theland.The Council considers that this method of valuing land provides the fairest method ofdistributing the rate burden across all ratepayers on the following basis:• Rates constitute a system of taxation and the equity principle of taxation requires thatratepayers of similar wealth pay similar taxes and ratepayers of greater wealth paymore tax than ratepayers of lesser wealth;• Property value is a relatively good and generally accepted indicator of wealth, andcapital value, which closely approximates the market value of a property, provides thebest indicator of overall property value.The Council will adopt the Capital Valuations made by Council’s Valuer, the SA Valuer-General as effective on 1 July 2006 for the purposes of 2006/2007 rating.Other valuation methods available are site value (value of land only) and annual value (valueof rental potential of the property). These are not considered appropriate in Playford’ssituation.GENERAL RATESThe Local Government Act 1999 provides for a Council to raise revenue for the broadpurposes of the Council through a general rate that applies to all rateable property.Council has decided that a component of the total rate will be a fixed charge that willraise approximately one half of total rate revenue (before remissions).Section 152 of the Act provides for a fixed charge component of rates. Council’s reasons forincluding a fixed charge component are:• To be able to deliver a range of services to the community, Council must maintain arange of internal support and administrative services. No particular group ofratepayers benefit more than any other group of ratepayers by the provision of thesupport and administrative services;• The Council therefore considers it appropriate that all ratepayers contribute equally tothe cost of administering Council’s activities, and further, all ratepayers shouldcontribute equally to the development and maintenance of the physical infrastructureof the City.The fixed charge will affect all ratepayers and is set to raise approximately one half of totalrate revenue.From a ratepayer’s perspective, the anecdotal evidence appears to be in favour of a fixedcharge, which is uniformly paid by each ratepayer, irrespective of capital value. Amendmentsmade to sections 151 & 152 of the Act prohibit a Council to generate rates based entirely ona fixed charge.In addition to a fixed charge Council will charge differential general rates (cents indollar valuation) on the following land uses:• Residential properties• Commercial properties2

• Primary Production properties• Country Township properties• Vacant Land and Other RatesEvery resident benefits in some part from the general amenity of the council area. Thisamenity includes the local economy, general council operations and the ability of everyresident to use council facilities.The main reasons for providing differential rates are:• ability to pay.• potential income taxation deductions.• materially heavier/lighter use of services by ratepayers / employees / customers /suppliers.Residential PropertiesThe majority of council’s ratepayers are classed as residential.Residential properties include detached dwellings, group dwellings, multiple dwellings,residential flats, row dwellings or semi-detached dwellings within the meaning of theDevelopment Regulations.About 85% of ratepayers are classified as residential and will contribute approximately 65%of total rate revenue.Commercial PropertiesCommercial properties include shops, offices and any other commercial land use within themeaning of the Development Regulations.Industrial properties include land uses of light industry and any other industrial use within themeaning of the Development Regulations.Council derives approximately 20% of its rate revenue from commercial properties(approximately 2% in number) and believes this to represent a fair differential.Primary Production PropertiesPrimary Production properties include farming, horticulture, commercial forestry, the use ofland for a dairy, horse keeping or intensive animal keeping within the meaning of theDevelopment Regulations.Primary Production properties tend to be remote from some of the services provided bycouncil. It is recognised that in terms of infrastructure adjacent to their properties theygenerally do not have made roads, footpaths or street lighting. However, they do have thecapacity to enjoy the same level of amenity as other residents in other areas of council. Inaddition, primary production properties have the potential for taxation benefits.Primary Production properties will contribute approximately 10% of total rate revenue.Country Townships of Virginia, Angle Vale and One Tree Hill PropertiesThe ratepayers in the country townships of Virginia, Angle Vale and One Tree Hill have beenassessed as not receiving the same benefits available to other residential ratepayers inPlayford at this point in time.There are a reduced level of sealed roads, kerbing, footpaths and street lighting. However,they do have the capacity to enjoy the same level of amenity as other residents andratepayers in other areas of council. For these reasons Council has elected to retain a lowerrate for the ratepayers in the country townships.3

Approximately 5% of total rate revenue is derived from Country Townships.Vacant Land and Other RatesProperties in these land use codes generally have the capacity to enjoy the same level ofamenity as other residents in other areas of council and the residential rate in the dollar willapply.These rate types account for approximately 5% of total rate revenue.BUSINESS IMPACT STATEMENTCommercial properties generally have available to them and their employees the sameservices as other ratepayers. However, in most cases commercial users have a greaterimpact on the main services such as road maintenance and generally derive a greater benefitfrom such services as improved public lighting, drainage, street-scaping, parking control etc.In addition, businesses generally pay rates from pre-tax revenues as opposed to residentialratepayers paying rates from post-tax revenue.Council generally is of the belief that council rates are not a significant factor in the businesscosts of commercial operations and as such have minimal impact on the setting up ormaintaining a business.LAND USELand use is the basis to levy the differential rates described above. If a ratepayer believesthat a particular property has been wrongly classified as to its land use then the ratepayermay object to that land use by writing to Council within 60 days of being notified. Theobjection must set out the basis for the objection and details of the land use that should beattributed to that property.The Council will then review the objection by requesting the Valuer to reassess the property.Upon receiving the Valuer’s recommendation, the General Manager will make a decisionregarding the objection.A ratepayer, if not satisfied with the council decision, also has the right to appeal against theCouncil’s decision to the Land and Valuation Court.EQUALISATION OF RATESDuring 1998/1999 Council undertook an extensive “Rating Policy Consultation Process”. Thisenabled Council to ascertain the impact of rates on the community and to introduce a ratingpolicy which equalised rates across the previous two amalgamated cities over a period ofthree years for residential properties and eight years for commercial properties.With residential properties already having been equalised, the 2006/07 financial yearrepresents the completion of the rate equalisation process for both commercial propertiesand tenancies and of the rate equalisation process overall.PENSIONER CONCESSIONSIf you are an eligible pensioner you may be entitled to concession on your rates.Existing ratepayers with Pensioner Concession do not need to reapply.4

Application forms, which include information on the concessions, are available from Council’sCustomer Service Centres.The application forms are also available from the SA Water Corporation and its district officesand Revenue SA.An eligible pensioner must hold a Pension Card, State Concession Card or be a TotallyPermanently Incapacitated Pensioner.You must also be responsible for the payment of rates on the property in respect of whichyou are claiming concessions and it must also be your principle place of residence, on thedue date of the first quarter for each financial year.The State Government administers applications. Payment of rates should not be withheldpending assessment by the State Government, as penalties will arise.STATE SENIORS CARD RATEPAYERS (SELF FUNDED RETIREE)If you are a self-funded retiree and currently hold a State Seniors Card you may be eligiblefor a concession toward council rates.In the case of couples, both must qualify, or if only one holds a State Senior’s Card, the othermust not be in paid employment for more than 20 hours per week.For further information, please contact Revenue SA.UNEMPLOYED PERSONS CONCESSIONSThe Department of Families & Communities may assist with the payment of Council ratesprovided this is for your principal place of residence (remissions are not available on vacantland or rental premises). Please contact your nearest Children, Youth & Family Servicesoffice for details.NATURAL RESOURCES MANAGEMENT LEVYThe Council is in the Adelaide & Mount Lofty Natural Resources Management area and isrequired along with other Councils of the area, to collect an amount specified as the Adelaide& Mount Lofty Natural Resources Management Levy on all rateable properties. Collectionoccurs on behalf of the Adelaide & Mount Lofty Natural Resources Management Board whichuses the funds to protect natural resources.For specific information about how this levy is used please contact the Adelaide & MountLofty Natural Resources Management Board on (08) 8271 9190.PAYMENT OF RATESThe Council will collect rates quarterly on the dates Gazetted as below:• 1 September• 1 December• 1 March• 1 June5

Rates may be paid:In person at the Customer Service Centres located at:• Playford Civic Centre, 10 Playford Boulevard, Elizabeth and• Playford library, Munno Para Shopping City, 600 Main North Road, Smithfieldor by any method detailed on the rates notice.Any ratepayer who may, or is likely to, experience difficulty with meeting the standardarrangements is invited to contact the Rates Officer to discuss alternative paymentarrangements. Such enquiries are treated confidentially by the Council.LATE PAYMENT OF RATESThe Local Government Act 1999 provides that Councils must impose a penalty of 2% on anypayment for rates, whether by instalment or otherwise, that is not paid on or before the duedate. A payment that continues to be late is then charged a prescribed interest rate for eachmonth it continues to be late.When the Council receives a payment in respect of overdue rates the Council applies themoney received as follows:• first – to satisfy any costs awarded in connection with court proceedings;• second – to satisfy any interest costs;• third – in payment of any fines imposed;• fourth – in payment of rates, in date order of their imposition.NON-PAYMENT OF RATESSection 184 of the Local Government Act 1999 provides that a Council may sell any propertyto recover outstanding rates where the rates have been in arrears for three years or more.REMISSION AND POSTPONEMENT OF RATESSection 182 of the Local Government Act 1999 permits a Council to postpone or giveremission on rates due to hardship and other defined reasons.Council applies these remissions in accordance with the ActREBATE OF RATESSection S159-166 of the Local Government Act 1999 requires Councils to rebate the ratespayable on some land.Council will determine rate rebate applications in accordance with its Rate Rebate Policy2006/07.DISCLAIMERA rate cannot be challenged on the basis of non-compliance with this policy and must be paidin accordance with the required payment provisions.Where a ratepayer believes that the Council has failed to properly apply this policy it shouldraise the matter with Council.6

Appendix 3.1:City of PlayfordSubsidiary Annual ReportGawler River Flood ManagementAuthority (GRFMA)

Constituent Councils:Adelaide Hills CouncilThe Barossa CouncilTown of GawlerLight Regional CouncilDistrict Council of MallalaCity of PlayfordAddress :19 Charles StreetNorwood South Australia 5067Telephone: (08) 8363 2969Mobile: 040 778 2255Facsimile: (08) 8363 9783Email:contact@fredpedler.comWeb Site:www.fredpedler.com

Gawler River Floodplain Management Authority Annual Report 2006 – 2007Chairman’s ForwardThe dictionary tells us that “progress” is “going forward” “an advance” “headway”.It is pleasing to be able to report that finally following the first steps in 1993 that tangible evidencein the form of the North Para Mitigation Dam wall is rising day by day and is expected to be atmaximum height by late September.Progress has also been made on the design of the South Para Reservoir spill way modificationsand levy bank designs for the lower Gawler River.The hydrology report, using the latest methods and practices to design the South Para Reservoirworks, has estimated higher flows for the infrequent but larger flood events has alerted theAuthority that the current works will be less effective than planned. While this evidence has causedconcern further mapping and research is underway to identify those areas still at risk and possibleadditional mitigation strategies.I appreciate the constructive input made by Members of the Board, Members of the TechnicalAssessment Panel and in particular our Executive Officer, Fred Pedler’s dedication to detail.AcknowledgementDr Bruce Eastick AMChairmanThe Board acknowledged the leadership and efforts of the Board Chair and Executive Officerduring the reporting year to advance the Scheme to the construction phase.GRFMAThe Gawler River Floodplain Management Authority (GRFMA) was formed as a RegionalSubsidiary under Section 43 and Schedule 2 of the Local Government Act 1999, by a Charterpublished in The South Australian Government Gazette on 22 nd August 2002. The ConstituentCouncils are the Adelaide Hills Council, The Barossa Council, The Town of Gawler, Light RegionalCouncil, District Council of Mallala and the City of Playford.The Charter provides that a representative of the Northern Adelaide and Barossa CatchmentWater Management Board is the Chairperson of the Board of Management of the GRFMA. TheCharter sets down the powers, functions, safeguards, accountabilities and an operationalframework and the Business Plan sets down the operational plan and financial plan to achieveagreed objectives.The GRFMA has been established for the following purposes:1. To co-ordinate the construction, operation and maintenance of flood mitigation infrastructurein the Gawler River area (the Floodplain);2. To raise finance for the purpose of developing, managing and operating and maintainingflood mitigation works within the Floodplain;3. To provide a forum for the discussion and consideration of topics relating to the ConstituentCouncil’s obligations and responsibilities in relation to management of flood mitigation withinthe Floodplain;4. To enter into agreements with Constituent Councils for the purpose of managing anddeveloping the Floodplain.Review of the CharterFollowing extensive consultation the Constituent Councils amended the Charter that came intoeffect in August 2006. The Charter now determines the Council shares to contribute to theapproved Gawler River Flood Mitigation Scheme and provides more clarity to a number ofPage 2

Gawler River Floodplain Management Authority Annual Report 2006 – 2007processes between the Councils and the GRFMA and provides for the appointment of DeputyBoard Members.The BoardThe Members of the Board for the year were:Authority Board Members Deputy Board MembersAMLRNRMBDr Bruce Eastick AM, ChairAdelaide Hills Council Cr Ian Bailey 1Cr Geoff Purdie 3Mr Peter Peppin, CEOMr Howard Lacy 3The Barossa Council Mayor Brian Hurn OAM Cr Barrie Stewart 3Mr David Morcom, CEOTown of GawlerCr Brian ThomCr Penny Johnstone 3Mr Neill Jacobs, CEOLight Regional Council Cr Ralph Hatcher 1Cr William Close 3Mr Peter Beare, CEO 1Mr Richard Michael 3 Cr Peter Graham 3Cr Ann Picard 3District Council of Mallala Cr Michael Picard 1Mr Damien Maloney, CEO 4Cr Joe Daniele 3Mr Colin Dunlop, CEO 2City of PlayfordCr Max O’RiellyMr Tim Jackson, CEOCr Don Levitt 31 to Nov 20062 to Dec 20063 from Dec 20064 from Feb 2007Ordinary meetings of the Board are held bi-monthly on the third Thursday of the even monthscommencing at 9.00 AM. Meetings are hosted by the Constituent Councils on a rotational roster.Seven Board meetings, including one Special Meeting, were held during the year as follows:Thursday 17 th August 2006GawlerThursday 26 th October 2006 MallalaThursday 14 th December 2006 ElizabethThursday 15 th February 2007 KapundaThursday 26 th April 2007GumerachaTuesday 17 th May 2007 Gawler (Special Meeting)Thursday 21 st June 2007NuriootpaA Key Outcomes Summary is prepared following each Board Meeting that highlights the key issuesand achievements and is distributed to Stakeholders electronically.Mr Fred Pedler, Principal of Fred Pedler & Associates, has been engaged to provide ExecutiveOfficer services under a services agreement until 31 st December 2008. Mr Pedler has experiencein the administration of Councils and regional subsidiaries under the Local Government Act.The following Policies have been adopted to provide management guidelines for the day-to-daybusiness of the GRFMA:Page 3

Gawler River Floodplain Management Authority Annual Report 2006 – 2007Policy A1 - Access to Meetings and DocumentsPolicy C1 - ConsultationPolicy I1 - Internal Review of DecisionsPolicy O1 – Operations ManualTechnical Assessment PanelA Technical Assessment Panel has been appointed to support the decision-making processes ofthe Board with delegated powers to provide advice and manage the technical aspects of thedesign, assessment and construction of the various parts of the Scheme:The Members of the panel are:Dr Bruce Eastick, ChairFred Pedler, Executive Officer, GRFMAKeith Downard, Technical Manager, AMLRNRMBChris Williams, Civil Project Officer, City of PlayfordBill Lipp, Principal Stormwater Engineer, Department for Transport, Energy and InfrastructureAndy Parsons, Principal Engineer Dams & Civil, SA Water CorporationThe Panel meets as the agenda requires and held eight meetings during the year as follows:Tuesday 15 th August 2006 WalkervilleTuesday 7 th November 2006 AdelaideWednesday 29 th November 2006 WalkervilleWednesday 6 th December 2006 WalkervilleTuesday 6 th February 2007 WalkervilleThursday 15 th March 2007 WalkervilleWednesday 23 rd May 2007 WalkervilleTuesday 19 th June 2007 WalkervilleGawler River Flood Mitigation SchemeThe Scheme has three parts:o The construction of a flood mitigation dam on the North Para River near Gawlero Modifications to the dam wall and spillway of the South Para Reservoir to provide floodmitigation.o Construction of levees including the formalization of a controlled parallel flow path togetherwith sensitive vegetation and channel maintenance along the lower reaches of the GawlerRiver.The Australian Government, South Australian Government, the six Constituent Councils and theNorthern Adelaide Barossa Catchment Water Management Board are funding the $20 millionScheme.North Para Flood Control DamThe dam is being constructed under two contracts, Earthworks and Roller Compacted Concrete(RCC) construction, that were both won by the South Australian construction company, BardavcolPty Ltd. Site works commenced in early October 2006 on the earthworks contract that included theconstruction of access roads and hard stand area for the mixing plant, the excavation of the damwall and secondary spill way site to bedrock and the construction of the low level pipe and cofferdams to protect the construction site from flooding. The earthworks contract was completed in April2007.Page 4

Gawler River Floodplain Management Authority Annual Report 2006 – 2007Under the RCC contract the contractor established the pug mill mixing plant with storage andsupplies for the aggregate, sand, fly ash and cement to produce the 44,000 cubic metres of RCCto build the dam and secondary spillway. A laboratory was established to monitor the quality of theRCC being produced by the mixing plant. RCC was first placed in the trial embankments on thesecondary spillway in May 2007 with construction on the main dam wall commencing on 18 th June2007 to be completed by the end of September 2007.All work on the dam and secondary spillway is to be completed by early December 2007.South Para Reservoir ModificationsTo review the need for these works, and if proved to review the final design configuration, theGRFMA commissioned the Department for Transport Energy and Infrastructure to prepare ahydrological assessment of the catchment using best practice methodology and all of the availabledata and then review the design of the proposed works. The report found that the previouslyproposed strategy (Tonkin) for a 10-metre slot at RL 255.42 with the rest of the spillway raised toRL 257.00 was the most appropriate configuration for the modified spillway.The report also found that the estimates of the flow rate of the large floods, 50 to 100 year AverageRecurrence Interval (ARI), should be increased by up to 50%, but the estimates for more commonfloods were unchanged and that the works on the North Para dam and the South Para spillwaywere still appropriate.The program is that the modifications to the South Para Reservoir be undertaken during 2008.Lower Gawler River WorksFollowing consultation with landowners in the Virginia and Two Wells districts Strategy 6d wasadopted in November 2006 as the most cost effective design strategy as it afforded maximum riverflows under the Old Port Wakefield Road Bridge and the Railway Bridge with minimum heightlevee construction with the least area still subject to flooding. The strategy requires theformalisation of a parallel flow path to be developed on the north side of the river just west of theOld Port Wakefield Road utilising the box culverts under the Port Wakefield Highway.Work is progressing on the setting out and surveying of the levees for the works. Engineers areinitially locating the levees to avoid desirable vegetation and infrastructure and pegging andrecording by GPS. Following discussion with the landowners and general agreement of thelocation, the levee alignments are then prepared by survey. Assessments of vegetation andriverbank stability are being undertaken as part of the alignment assessment.The GRFMA is required to obtain an easement to accommodate the works and has appointedMaloney Field Services as its agents to undertake these negotiations with landowners.Mapping ProjectThe report to review the design of the South Para Reservoir found that the North Para dam wasless effective in mitigating flood flows than was determined by the hydrology review in 2003 withthe target flow downstream of the Gawler River junction of 150m 3 /sec being exceeded somewherebetween 20 and 50 year ARI, rather than 100 year ARI.This means that for the very infrequent, but very large floods beyond a one in fifty year storm eventthat parts of the lower floodplain will still be at risk of flooding after the construction of the Scheme.The proposed modelling of one in 100 year rainfall event will identify these areas at risk in theevent of such an exceptional flood.The State Government, the four floodplain Councils of Gawler, Light Regional, Mallala, andPlayford together with Buckland Park Developers are funding the modelling project.Page 5

Gawler River Floodplain Management Authority Annual Report 2006 – 2007Plans showing the areas that will still be at risk are programmed to be available in early December2007.Gawler River Open Space StrategyThe GRFMA received a grant of $200,000 from the Adelaide Mount Lofty Ranges NaturalResources Management Board (AMLRNRMB) to prepare an Open Space Strategy from theGawler Junction to the marine outfall of the Gawler River. The Northern Group of the AMLRNRMregion has supported the development of this strategy.A Lower Gawler River Open Space Strategy Reference Group was formed to advise on thedevelopment of the strategy with membership drawn from the AMLRNRMB, Mallala, Playford,Gawler and Light Regional Councils, Urban Forest Biodiversity Program and Mr George Girgolas,the landowner most affected by the proposed Lower Gawler river parallel flow path.The environmental and heritage assessments will be undertaken as an extension to the work inprogress to design the Lower Gawler River Works. A landscape plan will also be prepared tocomplement the proposed extensive levee works.The Strategy will develop options for linear parklands and opportunities for public accessincluding trails where these are appropriate and prepare a landscape plan for the parallel floodpath as an ephemeral wetland with possible aquifer storage and recovery.The Reference Group meets as the agenda requires and held two meetings during the year asfollows:Tuesday 27 th March 2007 Davoren ParkTuesday 19 th June 2007 Davoren ParkGeneralInformation about the GRFMA, the Scheme and a number of documents are available on thewebsite www.fredpedler.com and go to the grfma pages.The GRFMA has no employees and all services are engaged on a contract basisPage 6

IncomeGAWLER RIVER FLOODPLAIN MANAGEMENT AUTHORITYFINANCIAL STATEMENTSIncome Statement for the Year Ending 30 th June 20072007 2006Notes $ $Subscriptions 3 24,000 24,000Investment Income 1 (d) 121,050 105,400State Government Grants 200,000Other 1,850 463Total Income 346,900 129,863ExpenditureContractual Services 5 56,114 47,655Finance Charges 1,396 1,424Other 9,902 12,505Total Expenditure 67,412 61,584Surplus from Operations 279,488 68,277Capital RevenuesSubscriptions 3 1,490,001 401,810NABCWMB Contribution 0 62,710State Government Grants 2,502,039 0Commonwealth Government Grants 2,528,867 32,898Total Capital Revenues 6,520,907 497,418Surplus 6,800,395 565,695GAWLER RIVER FLOODPLAIN MANAGEMENT AUTHORITYBalance Sheet as at 30 th June 20072007 2006Notes $ $Current AssetsCash 1 (e) 0Investments 1 (d) 3,320,462 1,945,991Debtors - GST 0 14,442Total Current Assets 3,320,462 1,960,433Current LiabilitiesBank Overdraft 51,484 30,828Creditors - GST 32,495Total Current Liabilities 83,979 30,828Net Current Assets 3,236,483 1,929,605Non Current AssetsDesigns Infrastructure 4 1,116,260 983,568Infrastructure 4 4,278,537 0Land 4 1,880,681 798,393Total Non Current Assets 7,275,478 1,781,961Non Current LiabilitiesCreditors 0 0Loans 0 0Total Non Current Assets 0 0EquityNet Assets 10,511,961 3,711,566Accumulated Surplus 10,511,961 3,711,566The above Income Statement should be read in conjunction with the accompanying notesTotal Equity 10,511,961 3,711,566The above Balance Sheet should be read in conjunction with the accompanying notes1Page 72

GAWLER RIVER FLOODPLAIN MANAGEMENT AUTHORITYStatement of Change in Equity for the Year Ended 30 th June 20072007 2006GAWLER RIVER FLOODPLAIN MANAGEMENT AUTHORITYStatement of Cash Flows for the Year Ended 30 th June 20072007 2006Accumulated SurplusNotes $ $Balance at beginning of period 3,711,566 2,861,858Net Surplus / (Deficit) 6,800,395 565,695Transfer from reserves 284,013Balance at end of period 10,511,961 3,711,566Asset Revaluation ReserveBalance at beginning of period 0 284,013Transfer to Surplus 0 284,013Balance at end of period 0 0Notes $ $Cash Flows from OperatingActivitiesReceipts 7,291,395 582,849Payments (563,717) (128,355)Interest Receipts 119,654 105,400Net Cash Provided by OperatingActivities6,847,332 559,894Cash Flows from FinancingActivitiesFinancing activities 0 0Net Cash Provided by FinancingActivities0 0Total Equity 10,511,961 3,711,566The above Statement of Change in Equity should be read in conjunction with the accompanying notesCash Flows from InvestmentActivitiesPayments – Designs Infrastructure andLandNet Cash Used in InvestmentActivitiesNet Increase (Decrease) in CashHeldCash at the beginning of thereporting periodCash at the end of the reportingperiod(5,493,517) (1,053,819)(5,493,517) (1,053,819)1,353,815 (493,925)1,915,163 2,409,0883,268,978 1,915,163The above Statement of Cash Flows should be read in conjunction with the accompanying notes3Page 84

1 Statement of Significant Accounting Policies(a) The Local Government Reporting EntityThis financial report is a special purpose financial report prepared for use by the Gawler River FloodplainManagement Authority. The Board has determined that the Authority is not a reporting entity.The Gawler River Floodplain Management Authority is a Regional Subsidiary under Section 43 andSchedule 2 0f the Local Government Act 1999. The Constituent Councils are the Adelaide Hills Council,The Barossa Council, Town of Gawler, Light Regional Council, District Council of Mallala and the City ofPlayford.All funds received and expended by the Authority have been included in the financial statements formingpart of this financial report.(b) Basis of AccountingThis financial report has been prepared in accordance with the following Accounting Standards:AAS 5 MaterialityNo other applicable Accounting Standards, Urgent Issues Group Consensus Views or other authoritativepronouncements of the Australian Accounting Standards Board have been applied.The financial report has been prepared on an accruals basis and is based on historic costs and does nottake into account changing money values, or except where specifically stated, current valuations of noncurrentassets.(c) EmployeesThe Association has no employees.(d) InvestmentsInvestments are valued at cost. Interest revenues are recognized as they accrue.(e) CashFor purposes of the statement of cash flows, cash includes cash deposits which are readily convertible tocash on hand and which are used in the cash management function on a day to day basis, net ofoutstanding bank overdraft.2 Functions / Activities of the Association(a) Revenues and expenses have been attributed to the following functions / activities, descriptions of whichare set out in Note 2b.(b) The activities of the Authority are catagorised into the following function / activities:Administration: The operations of the Authority and its BoardOther Environment: Flood Mitigation3 SubscriptionsThe following subscriptions were levied on the Constituent Councils in accordance with Clause 10.2 of theCharter for the year:Constituent Council Scheme Works Operations2007 2006 2007 2006Adelaide Hills Council $25,838 $6,970 $4,000 $4,000The Barossa Council $129,191 $34,840 $4,000 $4,000Town of Gawler $258,382 $69,680 $4,000 $4,000Light Regional Council $129,191 $34,840 $4,000 $4,000District Council of Mallala $430,636 $116,130 $4,000 $4,000City of Playford $516,763 $139,350 $4,000 $4,000Total $1,490,001 $401,810 $24,000 $24,0004 Non Current Assets, Non Current LiabilitiesThe following are the Non Current Assets:2007 2006North Para 5,109,631 $807,227South Para $33,033 $32,433Lower Gawler River $252,133 $143,908Total $5,394,797 $983,568Total $0Land $1,880,681 $798,393Total $1,880,681 $798,393Total $7,275,478 $1,781,961There are no Non Current LiabilitiesNote 2b Functions of the Gawler River Floodplain Management AuthorityAdministrationRevenueExpensesYearSurplusGrants Other Total % Expenses % (Deficit)RevenueTotal2007 200,000 146,900 346,900 5.0% 67,412 1.2% 279,4882006 0 129,863 129,863 20.6% 61,584 5.4% 68,279Other Environment: Flood Mitigation2007 5,030,906 1,490,001 6,520,907 95.0% 5,493,517 98.8% 1,027,3902006 32,898 464,520 497,418 79.4% 1,053,819 94.6% (556,401)Total2007 5,230,906 1,636,901 6,867,807 100.0% 5,560,929 100.0% 1,306,8782006 32,898 594,382 627,281 100.0% 1,115,403 100.0% (488,122)5Page 96

5 Contractual ServicesContractual Services involve payments or liabilities for the external provision of services and include (net ofGST):Consultants OperationsConsultants Designs Infrastructure2007 2006Fred Pedler & Associates $25,570 $47,655Adelaide Research & Innovation Trust $1,000Allsurv Engineering Services Pty Ltd $355 $20,575Australian Water Environments $93,603 $47,947Arup Water $25,020Bardavcol Pty Ltd $3,312,593Dept Transport Energy Infrastructure $10,980 $21,420Fred Pedler & Associates $68,705 $43,560Maloney Field Services $45,995 $32,377SA Water Corporation $467,746URS Australia Pty Ltd $355,840 $75,625Urban and Regional Planning Solutions $5,220The Lighthouse Public Relations $12,048 .Totals $4,399,655 $314,179Executive Officer’s StatementI, Frederick William Pedler, the person for the time being occupying the position ofExecutive Officer of the Gawler River Floodplain Management Authority do hereby statethat the financial statements for the Authority for the 2006 - 2007 financial year are to thebest of my knowledge presented fairly and in accordance with accounting procedureswhich have been maintained in accordance with the Local Government Act 1999 and theLocal Government (Financial Management) Regulations 1999 made under that Act.Dated 10th August 20076 Comparison of Budget and Actual Results2007 2006Budget Actual Budget Actual$ $ $ $RevenueAdministration 124,000 145,050 128,050 129,400Other Environment: Flood Mitigation201,850 0 462MaintenanceOther Environment: Flood Mitigation Capital 14,090,000 6,520,907 500,520 497,418Total Revenue 14,214,000 6,867,807 628,570 627,280ExpenditureAdministration 34,050 41,425 62,979 60,732Other Environment: Flood Mitigation25,987 852MaintenanceOther Environment: Flood Mitigation Capital 15,895,500 5,493,517 1,067,014 1,053,819Total Expenditure 15,929,550 5,560,929 1,129,993 1,115,403Surplus (Deficit) (1,715,550) 1,306,878 (501,423) (488,122)Fred PedlerEXECUTIVE OFFICERAdoption StatementLaid before the Board Meeting of the Gawler River Floodplain Management Authority andAdopted on Thursday 23 rd August 20077 Expenditure Commitment1. An agreement has been entered into with URS Australia Pty Ltd as Superintendent of Dam Construction at acost of $475,000 (net of GST).2. An agreement has been entered into with Australian Water Environments to undertake assessments andprepare designs for the Lower Gawler River Works, North Para Gauge Station and Gawler River Open SpaceStrategy at a cost of $372,643 (net of GST).3. An agreement has been entered into with Bardavcol Pty Ltd to undertake the RCC construction of the NorthPara River Dam at a cost of $9,844,534 (net of GST)4. An agreement has been entered into with Urban and Regional Planning Solutions to prepare the Gawler RiverOpen Space Strategy and Landscape Plans at a cost of $66,570 (net of GST)5. An agreement has been entered into with SA Water Corporation to undertake design work of the South ParaReservoir dam wall and spillway at a cost of $110,000 (net of GST).6. An agreement has been entered into with Fred Pedler & Associates to provide Executive Officer andSupervision of Consultants services to 31 st December 2008.7. The State Government has approved funding for the Gawler River Flood Mitigation Scheme totalling$7,750,000 of which $2,795,039 has been paid to the Authority.8. The Commonwealth Government has approved funding for the Gawler River Flood Mitigation Scheme underthe Regional Flood Mitigation Program totaling $8,063,371 of which $2,795,039 has been paid to the Authority.7Page 108

GAWLER RIVER FLOODPLAIN MANAGEMENT AUTHORITYIndependent Auditors ReportTo the Constituent Councils of the GAWLER RIVER FLOODPLAIN MANAGEMENTAUTHORITYScopeWe have audited the attached special purpose financial report on pages 1 to 8 comprising theIncome Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash flows,Notes to the Financial Statements and Statement by the Executive Officer for the year ended 30 thJune 2007. Gawler River Floodplain Management Authority’s Board is responsible for thepreparation and presentation of the financial report and the information contained therein, andhas determined that the accounting policies used are consistent with the financial reportingrequirements of their constitution and are appropriate to meet the needs of the members. Wehave conducted an independent audit of the financial statements in order to express an opinionon them. No opinion is expressed as to whether the accounting policies used are appropriate tothe needs of the members.The financial report has been prepared for distribution to members for the purpose of fulfilling theAuthority’s financial reporting requirements. As such, we disclaim any assumption of responsibilityfor reliance on this report or on the financial report to which it relates to any person other than themembers, or for any purpose other than that which it was prepared. The audit has beenconducted in accordance with the Australian Auditing Standards to provide reasonable assuranceas to whether the financial statements are free of material misstatement. The procedures includedan examination, on a test basis, of evidence supporting the amounts and other disclosures in thefinancial statements, and evaluation of accounting policies and significant account estimates.These procedures have been undertaken to form an opinion as to whether in all materialrespects, the financial statements are presented fairly in accordance with the accounting policiesdescribed in Note 1 of the financial statements. (These policies do not require the application ofall Accounting Standards and other mandatory professional reporting requirements in Australia).The audit opinion expressed in this report has been formed on the basis above.Audit OpinionIn our opinion, the financial statements of the Gawler River Floodplain Management Authority areproperly drawn up in accordance with the accounting policies described in Note 1 to the financialstatements, and fairly present the financial position of the Gawler River Floodplain ManagementAuthority as at 30 th June 2007 and the results of its operations and cash flows for the year thenended.9Page 11

Gawler River Floodplain Management AuthoritySchedule of Constituent Council's Interests in Net Assets as at 30th June 2007Prepared to meet the requirements of Clause 15.5 of the Charter"The ‘Schedule of Constituent Councils’ Interests in Net Assets’ will reflect the proportionate contribution eachConstituent Council has made to the growth of the net assets of the Authority having regard to theproportionate contribution to subscriptions. The Schedule when updated by the Board at the end of eachfinancial year will reflect the proportionate contribution of each Constituent Council since the commencementof the Authority and once accepted by each Constituent Council will be evidence of the agreed proportion of aConstituent Council’s interests in the net assets as at 30 June in that year."For the purposes of this Clause only Subscriptions for Scheme costs have been included in subscriptions tothe growth of assetsThis Schedule has been prepared on the basis that the Authority was 'wound up' on 30th June 2007. At thatdate the designs, assessments, Scheme infrastructure and land have been capitalised at cost. Grants andcontributions from the Commonwealth Government, State Government and the Northern Adelaide BarossaCatchment Water Management Board that have contributed to these costs have not been deducted.Calculation of Net EquityAssetsCash / Investments$3,320,462Designs and Infrastructure$1,116,260Infrastructure$4,278,537Land $1,880,681$10,595,940Less LiabilitiesOverdraft / Creditors$83,979Net Equity $10,511,961Constituent CouncilsSuscriptions tothe growth ofAssets to 30June2007Percentage ofContributions tothe TotalCouncil'sInterests in NetAssetsAdelaide Hills CouncilThe Barossa CouncilTown of GawlerLight Regional CouncilDistrict Council of MallalaCity of Playford$70,988 1.73% $182,286$354,951 8.67% $911,459$709,892 17.34% $1,822,892$354,951 8.67% $911,459$1,183,146 28.90% $3,038,135$1,419,763 34.68% $3,645,730$4,093,691 100.00% $10,511,961Schedule of Constituent Councils’ Interests in Net Assets’ as at the 30th June 2007 adopted by the Board inaccordance with Clause 15.5 of the Charter on 23rd August 2007.Page 12

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Evaluation of Performance Against the Business PlanThis Statement of Achievements Against the Business Plan will form part of the Key Outcomes Summary to Councils following the meetings at which it is tabled. The Statement will beprepared for the December April and June Board Meetings. The June report will form part of the GRFMA Annual Report 2006 - 2007.Part A: Proposed Flood Mitigation Scheme WorksPerformance Targets: Timings: To be measured By: Actual AchievementsSecure Project Funding March 2006 All Councils, stakeholders andGovernments agree tocontribute to the project inaccordance with the PlanReports to Stakeholders August All stakeholders and affectedlandowners notified of SchemeMay 2006 all Governments agree to the funding package totalling$20 millionDecember 2006 Roles and Responsibilities Fact Sheet distributedto support landowner understanding of the implementation of theLower Gawler River Scheme. Autumn 2007 Update Fact sheet distributed June 2007.Bi-MonthlyKey Outcomes Summary to bepublished following each BoardMeeting to include a summaryof the progress of thedevelopment of the Scheme.The Key Outcomes Summary tobe provided as a download onthe websitewww.fredpedler.com go to thegrfma Board page.Key Outcomes Summary published following Ordinary Meetingsand maintained on the web site for a six month periodNorth Para WorksDesign and assessments for the Flood Control Dam completed December 2005.Scope of work expanded to include the relocation of the Turretfield flow gauge weir and tipping bucket rain gauge to a site downstream from the proposed dam. Site selection andecological impact assessment of the weir construction completed December 2005.Development Approval forconstruction of the flood control damApril 2006 Development Approval issued November 2006 Development Approval issuedNative Vegetation Council approvalfor the construction of the flood controldamApril 2006Native Vegetation Councilapproval grantedAugust 2006 Native Vegetation Council approval issued (subjectto DA approval)Land Acquisition June 2006 Acquisition of the footprint land‘right to flood’ easementsPage 13July 2005 - McGlen property, Lot 25 purchased (to be resold)March 2006 Compensation Report adopted by the BoardAugust 2006 to February 2007 8 Form 1 Notices under the LandAcquisition Act issued

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Relocation of 300 mm water main June 2006 Water main relocated from theconstruction site.Construction of the project March 2006 Call tenders for construction ofthe damFebruary 2007 4 Grants of easement received.March 2007 Morgan property purchased (to be resold)May 2006 work commenced on site.July 2006 work completed on siteMarch 2006 Dam construction divided into two contracts,earthworks and RCC dam construction.April 2006 earthworks tenders closeMay 2006 program changed to undertake earthworks in summer2006 and commence laying RCC wall April 2007.November 2006 RCC tenders closeJune 2006 Construction tender awarded August 2006 URS Australia Pty Ltd appointed as consultantSuperintendent for the construction of the North Para FloodControl Dam. June 2006 Bardavcol Pty Ltd awarded earthworks contract December 2006 Bardavcol Pty Ltd awarded RCC contractSeptember 2007 Construction completed October 2006 Bardavcol commences earthworks contract withsite access works. February 2007 Bardavcol commences RCC contract. April 2007 Bardavcol completes earthworks contractDesign and tender documents forconstruction of the flow gauge weirApril 2006Design and tender documentspreparedJanuary 2006 Australian Water Environments Pty Ltd engaged toprepare design and tender documentation.August 2006 site selection reviewed, 3 design proposalspresented, submitted for comment to DWLBC.Approval for the construction of theflow gauge weirSeptember 2006Development Assessment andNative Vegetation Councilapproval grantedConstruction of the flow gauge weir December 2006 Call tenders for construction ofthe flow gauge weirJanuary 2007March 2007Tender for construction of theflow gauge weir awardedConstruction of the flow gaugeweir completedPage 14

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.South Para WorksThe South Para Reservoir is under the control and management of SA Water Corporation who have agreed to undertake the required modifications to the South Para Reservoir toprovide the required level of flood mitigation capacity as a cost to the Scheme.Dam safety review and design proposal to modify the dam wall and spillway completed September 2005Detailed hydrology study of the catchment using the very latest methodologies let to Department of Transport, Energy and Infrastructure.Detailed hydrology study June 2006 Completion of hydrology study October 2005 DTEI engaged to prepare detailed hydrology report ofthe Gawler River catchment to determine design criteria for SouthPara Reservoir March 2007 Hydrological Assessment of the Gawler Rivercatchment received and recommendation on the design of theSouth Para Reservoir Works adopted.Detailed design of works March 2007 Completion of detailed designand tender documentsConstruction of the works June 2008 Completion of constructionPage 15

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Lower Gawler RiverFollowing the November 2005 flood the scope of works was amended to include a geotechnical assessment of the existing flood control leveesThe following timetable is subject to the completion of those assessments.Performance Targets: Timings: To be measured By: Actual AchievementsAssessment of flood levees March 2006 Completion of assessment offlood leveesParallel flood way and levee design June 2006 Completion of parallel flood wayand levee designOpen Space Strategy June 2007 Completion of Open SpaceStrategy and Works landscapePlanApprovals for works March 2007 Development Approval andNative Vegetation Councilapproval grantedLand and easement acquisition March 2007 Acquisition of the footprinteasements and ‘right to flood’easementsUndertake channel improvements June 2007 Completion of ChannelImprovementsJanuary 2006 Coffey Geosciences Pty Ltd engaged to undertakeassessment of leveesMay 2006 preliminary assessment of levees completed.April 2005 DTEI modified hydrograph adopted to model LowerGawler River flows.January 2006 first strategies prepared by AWE.April, May, October and November 2006 modelling proposalspresented to meetings of electors, growers and key landowners.November 2006 Strategy 6d adopted as final modelling strategyDecember 2006 $200,000 grant from AMLRNRMB to developStrategyMarch 2007AWE contract amended and URPS engaged to proceedin two partsMarch 2007 Open Space Strategy Reference Group appointedApril 2007 levee alignments pegged, plans preparedApril 2007 MFS engaged to prepare assessment of compensationreportsParallel flood way and leveeconstructionDecember 2007Completion of parallel flood wayand levee constructionPage 16

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Mapping of the FloodplainFollowing the receipt of the Department for transport Energy and Infrastructure Hydrological Study of the Gawler River Catchment – March 2007 report, in May 2007 the Boardapproved a Mapping of the Floodplain project to identify the parts of the floodplain that will remain at risk of flooding, post works, in a 100 ARI flood event. The project is to be fundedby the State Government, four floodplain Councils and the Buckland Park Township Development consortium.Performance Targets: Timings: To be measured By: Actual AchievementsEngagement of the consultant June 2007 Adoption of the briefEngagement of the consultantPreparation of flood mapping November 2007 Flood mapping plans preparedJune 2007 mapping of floodplain brief approved.June 2007 Australian Water Environments in Association withWater Technology engaged to undertake Mapping ProjectPreparation of concept floodmitigation strategyDecember 2007Concept flood mitigationstrategy preparedPreparation of Final Report February 2008 Final report preparedPage 17

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Part B: Maintenance of the SchemePerformance Targets: Timings: To be measured By: Actual AchievementsPreparation of a Schedule of DamMaintenance Works including costingsPreparation of a Schedule of LowerGawler River Maintenance Worksincluding costingsSeptember 2007 Completion of the Schedule December 2005 Draft Maintenance Schedule prepared to beamended during the construction processSeptember 2007 Completion of the ScheduleInvestigate the opportunities formaintenance works to be undertakenby Agencies, Councils.Adopt an integrated SchemeMaintenance Plan including costings.December 2007December 2007Opportunities being negotiatedinto tangible schemes ofarrangementThe adoption of theMaintenance PlanPage 18

Gawler River Floodplain Management AuthorityAchievements Against the Business Plan 2002 – 2009 for the period July 2006 to June 2007For the previous achievements see the Annual Report 2002 – 2003, Annual Report 2003 – 2004, Annual Report 2004 – 2005 and Annual Report 2005 - 2006.Part C: Operation of the Regional SubsidiaryPerformance Targets: Timings: To be measured By: Actual AchievementsMaintain Effective RegionalSubsidiaryOctoberAugustThe performance of theExecutive Officer to be reviewedannuallyThe appointment of Auditor,Bank Operators, levels ofinsurance, appropriateregistrations, delegations andpolicies be reviewed annually.February 2007 Review of Executive Officer services completed andextended to December 2008.Operational Review of Auditor, Bank Operators, levels ofinsurance, appropriate registrations, delegations and policiesconducted in August 2006.Board meetings held on 17 th August, 26 th October, 14 th December2006 and 15 th February, 26 th April, 17 th May and 21 st June 2007.Review of the Business Plan By 31 st March Review the Business Plan priorto preparing the Budget forwardto Councils.Annual BudgetSubscriptionsBy 31 st MarchJuneOct, Dec, AprJuneDecemberAdopt for consultation forwardto Councils.Adopt Budget copy to Councilsin 5 daysConduct Budget ReviewsSend half year subscriptions toCouncilsSend half year subscriptions toCouncils Business Plan 2002 – 2009 reviewed and recommended toConstituent Councils 23 rd February 2006. Business Plan 2002 – 2009 adopted 15 th June 2006. Achievements against the Business Plan 2002 – 2009 completedin December 2006, March 2007 and June 2007. Budget 2006 – 2007 adopted 15 th June 2006. Budget 2006 – 2007 reviewed in December 2006, April and June2007. Draft Cashflow Statement Jan 2007 to June 2008 adopted 15 thFebruary 2007 and advised to Councils 27 th February 2007, andreviewed April and June 2007.March 2007 all Council subscriptions paid.Report to Constituent CouncilsFollowing each BoardMeetingby 30 th SeptemberThe receipt of the followingReports by Councils:• Board Meeting Key OutcomeSummary• Annual Report includingAnnual Financial Statements Key Outcomes Summary distributed following each ordinaryBoard meeting. Annual Report 2005 - 2006 sent 4 th September 2006. Annual Report posted on web site.Grant Claims At all times Lodge claims monthly for thepayment of Commonwealth andState Government Grants.Maintain positive Cash Flow At all times Positive bank account balancesat all times.Applications / Claims lodged for approved funding linesMay 2007 grants paid adjusted to 77.5% of claims including landpurchases.Prompt payment of Council subscriptions has provided positivecash flows.Page 19

Appendix 3.2:City of PlayfordSubsidiary Annual ReportNorthern Adelaide WasteManagement Authority (NAWMA)

NAWMANorthern Adelaide Waste Management AuthorityAnnual Report 2006/2007Responsible Waste ManagementNAWMA (a local Government Regional Subsidiary)Member Councils: Gawler, Playford and SalisburyClient Councils: Adelaide Hills, Barossa, Clare/Gilbert Valley, Copper Coast, Light Regional and Mallala

ForewordEfficient and environmentallysustainable waste managementis a major responsibility for allcommunities.The Northern AdelaideWaste Management Authority(NAWMA) operates leadingedge equipment, and implementspolicies and processes to delivertotal waste management forcommunities from the kerbsideto recycling and environmentallyresponsible waste disposal.NAWMA is a regional subsidiaryof the Cities of Playford andSalisbury and the Town ofGawler. It was establishedpursuant to Section 43 of the LocalGovernment Act 1999 to facilitatewaste management within theregion.NAWMA coordinates kerbsidewaste management collectionservices for approximately90,000 households with its corebusiness activity in processingof recyclables and responsibledisposal of residual waste.This involves:• administration and operation ofthe Waste Processing Facility atElizabeth West for the sortingof recyclables for market andbaling of waste for landfill; and• management of the baledlandfill at Uleybury.Where considered desirableby the Board of Management,NAWMA may conduct its wastemanagement activities in areasoutside the region governedby its member Councils. In2006-07, a number of otherCouncils used NAWMA’s wasteprocessing facility along with itsadministration and promotionalservices.

IntroductionThe Board of Management of NAWMAresolved that the main objective for 2006-07was to achieve a “break even” position for itsbusiness activities based on the accrual systemof financial reporting.We are pleased to report that this objectivehas been achieved. As such, it places NAWMAon solid financial and strategic footing to meetfuture waste management demands.In the reporting period, NAWMA has achieved:• increased tonnage throughputs for both residualwaste and recyclables; and• reduced operating hours resulting from effi cienciesgained at the Waste Processing Facility at ElizabethWest and the baled landfi ll at Uleybury.Considering the highly competitive nature ofthe waste management marketplace, NAWMA isvery satisfi ed with its positive results in the pastfi nancial year.SITA and Cleanaway, the contractors responsible forthe region’s kerbside waste collection services, haveperformed to a very high standard providing goodsupport to NAWMA and its member Councils.The quality of NAWMA staff, and their dedicationto the objectives of the Authority, provides a soundassurance that the expectations of member Councilsand their communities are being met.NAWMA has maintained an unswervingcommitment to environmentally sustainable andresponsible waste management, and it will strive tobuild on this achievement into the future.Councillor Brian GoodallChairmanMr Brian KingExecutive Offi cer

Fifty per cent of the visitors also travelled to theUleybury landfi ll and the informative viewing platformat that location.Garden wastecollection serviceAt 30 June, 2007, a total of 29,658 householdshad registered for participation in NAWMA’sgarden waste collection. This represents 33.56per cent of the collection catchment.During the year, NAWMA sold 1,632 bins valued at$81,000 for residents to participate in the garden wastecollection service.With the doubling of the State waste levy in thenew fi nancial year, NAWMA and its member Councilswill need to re-evaluate their position and the level ofservice provided for the new collection contracts tocommence in March 2009.Education and promotionOur “living logo” Nawma visited 19 schools inthe region and she presented education informationto 2,856 students. She also visited two communitygroups.Eighty eight schools in the region are registered forrecycling collection with a total of 682 recycling binsallocated to schools. This service is provided at nocharge with a maximum of ten bins per school.Servicing ComplaintsYear Waste Recycling Garden Waste02-03 1,313 159 49503-04 1,895 254 54404-05 1,187 233 50105-06 1,514 241 71506-07 1,030 325 546In the past fi nancial year, NAWMA received andaddressed a total of 1,901 calls relating to servicecomplaints. This equates to 7.3 calls per day.NAWMA’s collection contractors, SITA andCleanaway, collectively empty more than 28,000 binseach day. Clearly, the community is well serviced bythese contractors.NAWMA seeks to promote responsiblewaste management among residents, businessoperators, staff and contractors.Residents in particular have a key role in thisprocess. To maximise community awareness of wastemanagement issues, NAWMA dedicates substantialtime and resources to education and promotion.Visitors to NAWMA’s Environmental EducationCentre at the Elizabeth West site during the pastfi nancial year included:• 750 school age students with 77accompanying adults; and• 14 community groups.

Uleybury Landfi llLandfill gasVarious gases, including methane, are byproductsof landfill sites. Systems must be inplace to ensure environmental control of thesegases, which can be a valuable resource ifmanaged properly.In December 2006, lateral, or horizontal, gasmonitoring pipes were laid within the baled wasteof the Uleybury landfi ll, and this has allowed regularsampling of gases for analysis.Based on sampling results in the reporting period,it is expected that some venting, or fl aring, ofaccumulated gas will be required.Eventually, the landfi ll gas extracted from the site willbe directed to on-site generators to produce enoughrenewable energy, in the form of electricity, to power atleast 1,000 homes.RevegetationNAWMA is committed to protecting remnantindigenous vegetation at the landfi ll site, and toreplanting programs using seeds collected from localspecies.The Authority is working on seed collection andpropagation programs at the site with representativesof the SA Urban Forest biodiversity program andConservation Volunteers Australia (CVA).As part of National Tree Planting Day on 30 July2006, employees from the Savings and Loans CreditUnion planted 1,500 trees and shrubs at the landfi ll.The plantings have been carefully monitored withCVA representatives, NAWMA staff and contractorsundertaking weed control and pest plant removal.Sampling and testing of waterNAWMA is committed to ensuring that water inand around the landfi ll site is regularly sampled andtested to ensure the operation remains environmentallyfriendly.Samples of leachate (waste water) and groundwaterare collected every six months for analysis.Groundwater is also collected from two bores onprivate property adjacent the landfi ll site.After comprehensive testing of the samples, reportsare prepared by environmental consultants, GHD,with copies provided to the Environment ProtectionAuthority (EPA) and the private property landholders.Results are also forwarded to all members of the Balefi llManagement Consultative Committee (BMCC).Following a request by the BMCC, NAWMA alsocollects samples from rainwater tanks around thelandfi ll site for annual analysis, with the most recenttesting completed in June 2007.

Waste Processing FacilityContinuous site improvement practices– landfill operationOperations at the landfi ll are regularly reviewed toensure that the site is managed in an environmentallyresponsible manner.New methods to ensure waste is effectively sealed inthe landfi ll include soil covering on the edges of the celland paper mache coating on the vertical sides of bales.This minimises pest access, helps prevent litter escapeand reduces odour.Other control measures include the treatment ofleachate ponds with natural enzymes to minimiseodour, and regular works to control dust and litterwithin the landfi ll and on roads around the site.Landfill directThe quantity of material received direct into thelandfi ll – in the form of shredded tyres, intermediatelandfi ll cover and trommel screenings – totalled 20,865tonnes in 2006-07. This is almost three times thetonnage of the previous year.Waste Baling StationThe waste baling process at the ElizabethWest Waste Processing Facility (WPF) is acrucial aspect of NAWMA’s operations.With daily waste tonnages through the WPF nowaveraging 300 tonnes, any breakdown of the wastebaling machinery can have serious consequences.A specialist contractor has been engaged toimplement a strict maintenance program and toundertake repairs in the event of a breakdown. Thishas dramatically improved response times and reduceddown time. The development of a new maintenanceinspection regime and preparation of a spare partsinventory has also improved operations.The facility is regularly inspected to ensure allelements are working effi ciently. Improvements in thesorting of waste received, and the non-return of liquidwaste generated through the waste baling process, havereduced breakdowns and increased the “life” of balerparts.A total of 73,800 tonnes of residual waste wasreceived and baled in the reporting period. This is anincrease of 22 per cent on the previous year.It is expected that the tonnage of residual wastereceived for baling will increase by at least 5,000 tonnesin 2007-08.NAWMA has been successful in securing thekerbside collected municipal solid waste from theMallala Council (commenced April 2007). From July2007, The Barossa Council will also be directing itskerbside collected municipal solid waste to NAWMA.Material Recovery Facility (MRF)In the 2006-07 year, 19,000 tonnes of recyclableswere received from NAWMA member Councils.An additional 3,315 tonnes came from other sources,including the regional Councils of Mallala, Clare/GilbertValley, Light Regional and the Copper Coast, the latterfrom April 2007. The Barossa Council was due to startits mechanised recycling collection service in July 2007.The collected recyclables will be sorted at the NAWMAMRF at Elizabeth West.The quantity of paper and cardboard beingreceived is steadily increasing, and the export valueof this material is also rising. As such, NAWMA ismaintaining a steady income as part of its sharedrevenue arrangement with Regional Recyclers.

AdministrationSubstantial changes have been made in thepast year to improve office efficiency.A new MYOB accounting package has been installedwith staff undergoing extensive training in this system.As a result, the system has improved the managementof accounts and the raising of invoices.Financial reports, prepared by NAWMA’saccountants, Dean Newbery & Partners, are presentedto the Board of Management on a quarterly basis. Theaccountants have also started work to produce a 15-year fi nancial plan, which is being progressed with theBoard of Management through a series of workshops.Offi ce computer systems have been upgraded anda new local server has been commissioned. CalibreOne (G Soft) is externally monitoring NAWMA’scommunications system and providing technicalsupport when required.The Board of Management has approved a fi ve-yearappointment of auditors Galpin, Engler, Bruins andDempsey.Residents have accessed NAWMA’s free-call numberon 23,478 occasions in the past year. The bulk ofthese inquiries related to kerbside services, the repair orreplacement of wheelie bins, and bin purchases for thegarden waste service.Kerbside recyclingaudits programAs part of its on-going community awarenessprograms, NAWMA has targeted promotionsand kerbside audits in suburbs wherecontamination of recycling bins is an issue.The personal approach strategy has been successfulin helping residents to make informed decisions abouttheir waste disposal.Special interest groupsNAWMA has been actively involved in theformation of special interest groups to shareknowledge about environmentally responsiblewaste management.It has met with other regional subsidiaries – SRWRAand WCSA – to discuss issues of mutual interestregarding waste management operations, policies andstrategic objectives. As a result, the three organisationshave produced a discussion paper and review of theState Waste Levy, which has been presented to theState Government.NAWMA has also been involved with othermetropolitan Adelaide landfi ll operators in theformation of Landfi ll SA. This is a working group ofthe WMAA and it is a member of the National Landfi llWorking Group.Landfi ll SA’s stated vision is to be recognised as anecessary and responsible environmental managementcomponent of the State’s waste infrastructure.Mobile garbage binsNAWMA strives to deliver excellent customerrelations, and an important component ofthat effort is the timely issuing, repair andreplacement of mobile garbage bins (MGBs).The NAWMA contractor responsible for thesematters has achieved the following results in 2006-07:• 3,532 MGBs (2,453 waste and 1,079 recycling) weredelivered to households as replacements for bins thathad been stolen, burnt or vandalised;• 1,489 MGBs were repaired in the fi eld; and• 2,163 waste and recycling MGBs were delivered tonew households in the region.Clearly, this is a busy extension of NAWMA’skerbside waste management services.

Financial summary for the year ended 30 June 2007REVENUES 2007 2006$ $Revenue from Ordinary Activities 15,211,274 12,760,528EXPENSESInterest Expense 388,360 347,692Collection costs 6,993,491 6,733,397Depreciation and Amortisation 1,330,119 3,274,913Disposal Costs 2,609,234 2,992,406Other Expenses from Ordinary Activities 3,844,419 3,013,11715,165,623 16,361,525NET SURPLUS/ (DEFICIT) 45,651 (3,600,997)CURRENT ASSETSCash & Cash Equivalents 158,370 256,068Receivables 1,339,424 169,519Inventory 3,663 7,368Other Financial Assets 87,547Total Current Assets 1,501,457 520,502NON-CURRENT ASSETSProperty, plant and equipment 5,981,571 4,928,116Total Non-Current Assets 5,981,571 4,928,116Total Assets 7,483,028 5,448,618CURRENT LIABILITIESTrade & Other Payables 2,694,151 2,818,049Short Term Provisions 42,798 40,777Total Current Liabilities 2,736,949 2,858,826NON-CURRENT LIABILITIESLong Term Payables 4,704,587 4,836,099Long Term Provisions 2,260,960 18,812Total Non-Current Liabilities 6,965,547 4,854,911Total Liabilities 9,702,496 7,713,737NET ASSETS (2,219,468) (2,265,119)TOTAL EQUITY (2,219,468) (2,265,119)This Summary Financial Report should be read in conjunction with the full Financial Report

Performance SummaryWaste Tonnage comparisonsWaste Tonnage comparisonsYear Services Tonnes Collected02-03 80,999 44,39403-04 83,543 45,38504-05 85,395 46,62405-06 87,387 46,29706-07 89,312 46,062The number of households has increased by 1,925during the reporting period. Waste collected perhousehold per week is 9.92 kg, which is less than theprevious year.90,00088,50087,00085,50084,00082,500S E R V I C E SSERVICEST O N N E S C O L L E C T E D47,00046,50046,00045,50045,00044,50044,00043,50081,000TONNAGE43,0002002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006Y E A R2006 - 2007Recycled Tonnage comparisonsRecycling Tonnage comparisonsYear Services Tonnes Collected02-03 80,999 15,93903-04 83,543 17,00004-05 85,395 18,05305-06 87,387 19,04006-07 89,312 18,935The collection yield from the kerbside system is 4.08 kgper household per week. This indicates that the kerbsidecollection service is being well utilised and it is very similarto the previous year’s fi gure.90,50088,75087,00085,25083,50081,750S E R V I C E SSERVICEST O N N E S C O L L E C T E D19,00018,50018,00017,50017,00016,50016,00015,50080,000TONNAGE15,0002002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006Y E A R2006 - 2007

Gardenwaste Tonnage comparisonsGardenwaste Tonnage comparisonsYear Services Tonnes Collected02-03 22,818 9,81103-04 25,262 10,84804-05 26,658 11,53105-06 28,413 13,25206-07 29,658 11,039This represents an average yield of 7.16 kg per householdweek. Although this is less than last year – due to droughtconditions – this is still a substantial diversion of greenorganics from landfi ll.29,50028,25027,00025,75024,50023,25022,000S E R V I C E SSERVICESTONNAGET O N N E S C O L L E C T E D13,00012,50012,00011,50011,00010,50010,0009,5009,0002002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006Y E A R2006 - 2007Regional performance comparisonwith previous yearsRegional performance comparison with previous yearsYear Recyclables Waste Total Diversion(tonnages) (tonnages) from landfill02-03 25,750 44,394 36.7%03-04 27,848 45,385 38.0%04-05 29,584 46,624 38.82%05-06 32,292 46,279 41.10%06-07 29,974 46,062 39.4%Diversion is less than the previous year due to less greenorganics as a result of drought conditions.32,00031,00030,00029,00028,00027,00026,000R E C Y C L A B L E S T O N N A G E40.5%40.0%39.5%39.0%38.5%38.0%37.5%37.0%36.5%T O T A L D I V E R S I O N F R O M L A N D F I L LW A S T E T O N N A G E46,00045,75045,50045,25045,00044,75044,50044,25044,0002002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007Y E A RMember Councils performance 2006 - 2007Member Councils performance 2006 – 2007Recyclables Waste Total Diversion Compared to 2005-(tonnages) (tonnages) from landfill 2006 & 2004-2005Gawler 3,049 4,173 42.2% 41.9% 39.6%Playford 7,160 14,966 32.4% 34.6% 31.6%Salisbury 19,766 26,922 42.3% 44.1% 42.2%Note: The City of Playford’s garden waste collection service isa user-pays system.19,00017,00015,00013,00011,0009,0007,0005,0003,000R E C Y C L A B L E S T O N N A G E2006 - 20072005 - 20062004 - 20052006 - 20072005 - 20062004 - 20052006 - 20072005 - 20062004 - 200542%40%38%36%34%32%30%28%26%T O T A L D I V E R S I O N F R O M L A N D F I L LW A S T E T O N N A G E29,00026,00023,00020,00017,00014,00011,0007,0004,000GAWLERPLAYFORDSALISBURY

Organisational StructureThe composition of the Board of Management has remainedconstant for the past year with Cr. Brian Goodall re-elected asChairman.The management of NAWMA’s business operations has assumeda higher degree of importance due to increased and expandedactivity levels. This necessitates improved and more comprehensivereporting to Board members.Workshops have been conducted to assist Board membersin building their knowledge of the waste industry and relevantregional/Statewide activities.nawma boardexecutive offi cerMr Brian Kingboard membersTown of GawlerCr David StraussCr Greg MorrisMr Terry SpurlingCity of PlayfordMr Leigh HallMr Matthew PearsMr Greg PattinsonCity of SalisburyCr Betty GillCr Brian Goodall(Chairman)Mr Colin Pitmanproxy membersTown of GawlerCr Peter RussellCity of PlayfordMr Peter OyeCity of SalisburyCr Linda CarusoMr Stephen WalkermanageroperationsMr David Diprosesenior adminoffi cerMrs Gaynor Garnisheducation/promotions offi cerMiss Theresa Dolmanadmin staffMiss Tracey GaskinMrs Sue JebbNAWMA Cnr Peachey & Bellchambers Road, ELizabeth West, SA 5113Postal Box 10 MDC, Elizabeth West, SA 5113Freecall 1800 111 004 Phone 08 8252 9666 Email admin@nawma.sa.gov.au Web www.nawma.sa.gov.au

Appendix 3.3:City of PlayfordSubsidiary Annual ReportWaterproofing Northern AdelaideRegional Subsidiary (WNARS)

City of Playford12 Bishopstone RoadDavoren Park SA 5113Phone: 8256 0333Email:Website:playford@playford.sa.gov.auwww.playford.sa.gov.au