2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

◊reality is that infrastructure land is required tobe retained by PNCC for community use. The fairvalue was determined by Paul van Velthooven(FPINZ, FNZIV, BA, BComm) of Morgans PropertyAdvisors.Additions and acquisitions to infrastructureassets since valuation date are valued at cost.Land under roads (road reserves), infrastructureland and off-street parking land◊◊◊Valuation of infrastructure land is generallyconsidered ‘non tradable’ due to the perpetualnature of community use. It was last valued at30 June 2011 based on the undeveloped landvalue of the adjoining land with a discountapplied to recognise the non-tradable nature ofthe asset. This asset class is re-valued as part ofthe infrastructural assets revaluation. The fairvalue was determined by Paul van Velthooven(FPINZ, FNZIV, BA, BComm) of Morgans PropertyAdvisors.Land for off-street carparks, that haveindependent ‘certficates of title’ and can bedisposed of, have been individually valuedby registered valuer on an open market valuebasis, which is the price for which the propertymight reasonably be expected to be sold at theoperative date between a willing buyer andwilling seller in an arms length transaction.The fair value was determined by Paul vanVelthooven (FPINZ, FNZIV, BA, BComm) ofMorgans Property Advisors.Land under roads was valued based on the fairvalue of adjoining undeveloped land determinedby Chris Leahy (Registered Valuer FNZIV, FNZPI)of CL Property Solutions Ltd, effective 30 June2005. On transition to NZ IFRS PNCC has electedto use the fair value of land under roads as at 30June 2005 as deemed cost. Land under roads isno longer revalued.Library collections◊ Library books were valued as at 30 June 1993, attheir deemed cost. The NZ Pacific collection isvalued at cost. All other books are valued at costless accumulated depreciation. Additions sincevaluation date are stated at cost.Heritage and art collection◊ The art collection assets are re-valued everythree years and the heritage collection assetsevery four years.◊◊◊The entire art collection (owned and custodial)was valued as at 30 June 2012 by Mr JamesParkinson of Art and Object, Auckland, on thebasis of a fair, minimum value realisable.In 2011, a full revaluation of the owned andcustodial heritage collections were conductedby R J Watt and Associates, with the exceptionof the library collection which was valued by MrJohn Atkinson.Dr Robin J Watt (MA (First Class Hons), PhD)valued the collection based upon market,replacement, comparative and comparativeinstitutional values. Mr John Atkinson,Atkinson’s Books Wellington, with 19 yearsexperience in bookselling, valued the heritagelibrary collection based upon fair, minimumvalue realisable.Financial Statements Note 15ValuationThe total fair value of property, plant and equipment valued by each valuer was:Council GroupActual Actual2012 2012$000 $000Mr BD Mainwaring and Mr HG Thompson of Blackmore and Associates - 32,418Mr James Parkinson of Art and Object - 8,145Assets pledged as security◊◊The net carrying amount of plant and equipmentheld under finance leases is $nil (2011 $1k).Except for assets subject to finance leases and thehousing improvement suspensory loan of $480k(2011 $480k) secured by mortgage against therelevant housing units, PNCC does not have anyassets pledged as security for liabilties.A registered first debenture and mortgage issecured over assets and property owned byPalmerston North Airport Ltd. The borrowingsare from the Bank of New Zealand and at 30 June2012 land and buildings with a carrying value of$27.9m has been pledged as security.Significant acquisitions and replacement of assets◊ In accordance with the provisions of Section 24Part 3 Schedule 10 of the Local Government Act2002, the What the Council Does section containsmore information on the significant acquisitionsand renewals of assets on an activity basis.Palmerston North City Council Annual Report 2011/12163