Financial Report 2009-2010 - City of Monash

Financial Report 2009-2010 

62 

Financial Report Table of Contents 

Financial Report ................................................................................................. 63 

Comprehensive Operating Statement ..........................................................64 

Balance Sheet ............................................................................................... 65 

Statement of Changes in Equity ...................................................................66 

Cash Flow Statement ................................................................................... 67 

Notes to the Financial Report ....................................................................... 68 

Certification of the Financial Report ............................................................104 

Standard Statements ........................................................................................105 

Basis Of Preparation Of The Standard Statements ....................................106 

Standard Income Statement .......................................................................107 

Standard Balance Sheet .............................................................................108 

Standard Cash Flow Statement ..................................................................109 

Standard Statement Of Capital Works ........................................................110 

Certification Of The Standard Statements ...................................................111 

Performance Statement ....................................................................................113 

Performance Statement ..............................................................................114 

Certification Of The Performance Statement ....................................................115

For the year ended 

30 June 2010 

Financial Report 

Registered Office and Principal Place of Business: 

293 Springvale Road, Glen Waverley, Vic 3150 

63

Comprehensive Operating Statement 

For the Year Ended 30 June 2010 

Note 2010 2009 

$'000 

$'000 

Revenue 

Rates & Charges 2 71,490 67,407 

Charges, Fees and Fines 3 26,040 24,016 

Contributions - Cash 4 3,128 5,033 

Contributions - Non-monetary assets 4 872 5,220 

Grants-Recurrent 5 22,978 24,178 

Grants-Non-Recurrent 5 8,135 1,759 

Interest Revenue 6 2,504 3,003 

Other Revenue 7 1,934 2,210 

Net gain /(loss) on disposal of Property, Plant & Equipment 8 525 231 

Share of net profit/(losses) of associates and joint venture accounted for by the equity method 9 31 62 

Total Revenue 137,637 133,119 

Expenses 

Employee Benefits 10 58,960 55,194 

Materials, Services & Contracts 11 51,004 49,613 

Depreciation & Amortisation 12 22,900 22,099 

Finance Costs 13 701 727 

Other Expenses 14 1,367 1,663 

Total Expenses 134,932 129,296 

Surplus/(Deficit) 2,705 3,823 

Other comprehensive income 

Share of net loss on revaluation of associates and joint ventures accounted for by the equity method 29 (1,148) - 


64 

Net Asset revaluation increment/decrement 29 194,907 16,903 

Comprehensive result 196,464 20,726 

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

Balance Sheet 

As at 30 June 2010 


ASSETS $'000 $'000 

Current Assets 

Cash & Cash Equivalents 15 45,918 47,436 

Trade & Other Receivables 17 6,908 6,208 

Financial Assets 16 2 2 

Inventories 18 49 47 

Non Current Assets as held for sale 19 881 590 

Other Assets 20 2,670 2,737 

Total Current Assets 56,428 57,020 

Non-Current Assets 

Investments in Associates accounted for using the equity method 9 2,580 3,697 

Property, Plant & Equipment 21 2,050,787 1,850,382 

Intangible Assets 22 7,590 11,220 

Total Non-Current Assets 2,060,957 1,865,299 

TOTAL ASSETS 2,117,385 1,922,319 

LIABILITIES 

Current Liabilities 

Trade & Other Payables 23 10,988 11,164 

Trust Funds & Deposits 24 4,998 4,595 

Income in Advance 25 1,485 3,858 

Provisions 26 10,779 10,452 

Interest-Bearing Loans & Borrowings 27 3,200 3,200 

Refundable Deposits 28 19,794 19,810 

Total Current Liabilities 51,244 53,079 

Non-Current Liabilities 

Provisions 26 2,349 1,912 

Interest-Bearing Loans & Borrowings 27 6,800 6,800 

Total Non-Current Liabilities 9,149 8,712 

TOTAL LIABILITIES 60,393 61,791 

NET ASSETS 2,056,992 1,860,528 

EQUITY 

Accumulated Surplus 910,861 911,527 

Asset Revaluation Reserve 29 1,133,946 940,187 

Other Reserves 29 12,185 8,814 

TOTAL EQUITY 2,056,992 1,860,528 

The above Balance Sheet should be read in conjunction with the accompanying notes. 

65

Statement of Changes in Equity 


Asset 

Asset 

Accumulated Revaluation Other Accumulated Revaluation Other 

Note Total Surplus Reserve Reserves Total Surplus Reserve Reserves 

2010 2010 2010 2010 2009 2009 2009 2009 

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

Balance at beginning of the Financial Year 1,860,548 911,547 940,187 8,814 1,839,802 909,336 923,284 7,182 

Recognition of previously Unrecognised Loss 

9 (20) (20) - - - - - - 

on Joint Venture 

Revised Balance at beginning of Financial Year 1,860,528 911,527 940,187 8,814 1,839,802 909,336 923,284 7,182 

Surplus/(deficit) for the year 2,705 2,705 - - 3,843 3,843 - - 

Net asset revaluation increment 29 196,062 - 196,062 - 16,903 - 16,903 - 

Bed Licences revaluation decrement 29 (1,155) - (1,155) - - - - - 

Joint Venture asset revaluation decrement 29 (1,148) - (1,148) - - - - - 

Transfers to Reserves 29 - (5,912) - 5,912 - (5,018) - 5,018 

Transfers from Reserves 29 - 2,541 - (2,541) - 3,386 - (3,386) 

Balance at End of the Financial Year 2,056,992 910,861 1,133,946 12,185 1,860,548 911,547 940,187 8,814 

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


66

Cash Flow Statement 



Inflows/ 

Inflows/ 

(Outflows) (Outflows) 

$'000 

$'000 

Cash Flows from Operating Activities 

Receipts from Ratepayers 71,336 67,256 

Charges, Fees and Fines Received 27,806 25,456 

Grants Received 27,444 27,832 

Contributions, Reimbursements and Donations Received 3,128 5,037 

Interest Received 2,208 2,853 

Other Receipts 2,370 2,248 

GST reimbursed by Australian Tax Office 6,787 5,546 

GST paid to Australian Tax Office (2,011) (1,389) 

Materials, Services and Contracts Paid (56,800) (56,318) 

Payments to Employees (58,440) (54,007) 

Other Payments (1,074) (1,370) 

Net Cash provided by Operating Activities 36 22,754 23,144 

Cash Flows from Investing Activities 

Payments for Property, Plant and Equipment (28,864) (24,558) 

Proceeds from Sale of Property, Plant and Equipment 4,800 3,221 

Net Cash used in Investing Activities (24,064) (21,337) 

Cash Flows from Financing Activities 

Finance Costs (701) (727) 

Trusts and Refundable Deposits 493 2,522 

Receipt from Re-draw of Borrowings 1,700 1,700 

Repayment of Current Borrowings/Leases (1,700) (1,700) 

Net Cash provided by Financing Activities (208) 1,795 

Net increase (decrease) in cash and cash equivalents (1,518) 3,602 

Cash and cash equivalents at the beginning of the financial year 47,436 43,834 

Cash and Cash equivalents at the end of the year 15 45,918 47,436 

The above Cash Flow Statement should be read with the accompanying notes 

67

Notes to the Financial Report 


INTRODUCTION 

The financial report of the Monash City Council is a general purpose financial report that consists of an Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow 

Statement and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, the authoritative pronouncements of 

the Australian Accounting Standards Board, the Local Government Act 1989, and Local Government (Finance & Reporting) Regulations 2004. 

NOTE 1 Significant Accounting Policies 

(a) Basis of Accounting 

This financial report has been prepared on the accrual and going 

will be recovered when the property is next sold. 

Sale of property, plant and equipment, infrastructure 

concern basis under the historical cost convention, except where 

specifically stated in notes 1(h), 1(j), 1(l),1(p),1(r) and 1(s). 

Control over granted assets is normally obtained upon their receipt 

(or acquittal) or upon earlier notification that a grant has been 

The profit or loss on sale of an asset is determined when control of 

the asset has irrevocably passed to the buyer. 

Unless otherwise stated, all accounting policies are consistent with 

those applied in the prior year. Where appropriate comparative 

figures have been amended to accord with current presentation, and 

disclosure has been made of any material changes to comparatives. 

All entities controlled by Council that have material assets or 

secured, and are valued at there fair value at the date of transfer. 

Income is recognised when the Council obtains control of the 

contribution or the right to receive the contribution, it is probable 

that the economic benefits comprising the contribution will flow to 

the Council and the amount of the contribution can be measured 

(d) Inventories 

Inventories held for distribution are measured at cost adjusted when 

applicable for any loss of service potential. Other inventories are 

measured at the lower of cost and the net realisable value. 

liabilities, such as Special Committees of Management, have been 

included in this financial report. All transactions between these 

entities and the Council have been eliminated in full. 

reliably. Where grants or contribution recognised as revenues 

during the financial year were obtained on condition that they be 

expended in a particular manner or used over a particular period 

(e) Depreciation of Property, Plant and Equipment, 

Infrastructure, Intangibles 

(b) Change in Accounting Policies 

and those conditions were undischarged at balance date, the 

unused grant or contribution is disclosed in Note 5. The Note 

Buildings, land improvements, plant and equipment, infrastructure, 

heritage assets, and other assets have limited useful lives and are 

All accounting policies adopted for the reporting period are 

consistent with those of the previous reporting period. 

also discloses the amount of unused grant or contribution from 

prior years that was expended on Council’s operations during the 

current year. 

systematically depreciated over there useful lives to the Council 

in a manner which reflects consumption of the service potential 

embodied in those assets. Estimates of remaining useful lives 


(c) Revenue recognition 

Rates, Grants and Contributions 

Rates and contributions (including developer contributions) are 

recognised as revenues when the Council obtains control over the 

assets comprising these receipts. 

Control over assets acquired from rates is obtained at the 

commencement of the rating year as it is an enforceable debt linked 

to the rateable property or, where earlier, upon receipt of the rates. 

A provision for doubtful debts on rates has not been established as 

unpaid rates represents a charge against the rateable property that 

A liability is recognised in respect of revenue that is reciprocal in 

nature to the extent that the requisite service has not been provided 

at the balance date. 

User Fees and Fines 

User Fees and Fines (including parking fees and fines) are 

recognised as revenue when the service has been provided, 

the payment is received, or when the penalty has been applied 

whichever first occurs. A provision for doubtful debts is recognised 

when collection in full is no longer probable. 

and residual values are made on a regular basis with major asset 

classes reassessed annually. Depreciation rates and methods are 

reviewed annually. 

Depreciation is recognised on a straight line basis using rates which 

are reviewed each reporting period with respect to the estimated 

remaining useful life of those assets. 

Land, Artworks and Bed Licences are not considered depreciable 

asset classes. 

During the financial year, Council reviewed the useful life, and applicable 

depreciation rates, of all asset classes, in accordance with Australian 

Accounting Standard AASB 116 “Property, Plant & Equipment”. 

68



Major depreciation periods used are listed below and are consistent 

with the prior year unless otherwise stated: 

2009/10 

Asset Description 

Useful Life 

Land Improvements 

25 Years 

Buildings 

40 - 50 Years 

Plant & Machinery - Large 

7 Years 

Plant & Machinery - Medium 

5 Years 

Plant & Machinery - Equipment 

3 Years 

Plant & Machinery - Small 

2 Years 

Motor Vehicles 

7 Years 

Furniture 

10 Years 

Computer Equipment 

5 Years 

Office Equipment 

5 - 10 Years 

Other Equipment 

10 Years 

Art 

Indefinite 

Library Books - Reference 

7 Years 

Library Books - Hardcover 

5 Years 

Library Books - Periodicals 

2 Years 

Audio Visuals 

4 Years 

Road Pavements - Base 

150 Years 

Road Pavements - Seal 

25 Years 

Road Pavements - Right of Ways 

100 Years 

Road Pavements - Footpaths 

60 Years 

Road Pavements - Kerbs & Channels 

150 Years 

Drains 

100 Years 

Bridges - Vehicular 

120 Years 

Bridges - Wooden 

40 Years 

Other Infrastructure - Car Parks & Landscaping 25 Years 

Other Infrastructure - Bus Shelters/Play Equipment 10 Years 

Other Infrastructure - Signs/Sprinklers 

10 Years 

Other Infrastructure - Retaining Walls/Street Furniture 40 - 60 -100 

Years 

Other Infrastructure - Bikepaths 

50 Years 

Bed Licences 

Indefinite 

(f) Repairs and Maintenance 

Routine maintenance, repair costs and minor renewal costs are 

expensed as incurred. Where the repair relates to the replacement 

of a component of an asset and the cost exceeds the capitalisation 

threshold the cost is capitalised and depreciated. The carrying value 

of the replaced assets is expensed. 

(g) Borrowing costs 

Borrowing costs are recognised as an expense in the period in 

which they are incurred, except where they are capitalised as part 

of a qualifying asset constructed by Council. Except where specific 

borrowings are obtained for the purpose of specific asset acquisition, 

the weighted average interest rate applicable to borrowings at 

balance date, excluding borrowings associated with superannuation, 

is used to determine the borrowing costs to be capitalised. 

(h) Recognition and Measurement of Assets 

Acquisition 

The purchase method of accounting is used for all acquisitions of 

assets, being the fair value of assets provided as consideration 

at the date of acquisition plus any incidental costs attributable to 

the acquisition. Fair value is the amount for which the asset could 

be exchanged between knowledgeable willing parties in an arms 

length transaction. 

Where assets are constructed by Council, costs include all materials 

used in construction, direct labour, and an appropriate share of 

directly attributable variable and fixed overheads. 

In accordance with Council policy, the threshold limits detailed below 

have been applied when recognising assets within applicable asset 

class and unless otherwise stated are consistent with the prior year. 

The following classes of assets have been recognised in Notes 21 & 22. 

Class of Asset Threshold $ 

Property, Plant & Equipment 

-Land 1 

-Land under roads 1 

-Buildings 1 

-Plant & Equipment 500 

-Furniture & Fittings 500 

-Art 1 

-Library Books 1 

-Roads & Pavements 

-Roads - Earthworks 1 

-Roads - Substructure 1 

-Roads - Seal 1 

-Roads - Kerbs & Channels 1 

-Footpaths - Substructure 1000 

-Footpaths - Seal 1000 

-Drains 1 

-Bridges 1 

Intangible assets 

Bed licences 1 

69




(h) Recognition and Measurement of Assets (cont.) 

Revaluation 

Subsequent to the initial recognition of assets, land and buildings, 

infrastructure assets and art are measured at fair value, being 

the amount for which the assets could be exchanged between 

knowledgeable willing parties in an arms length transaction. At 

balance date, the Council reviews the carrying value of the individual 

classes of assets to ensure that each asset materially approximates 

its fair value. Where the carrying value materially differs from the fair 

value the class of assets is revalued. The basis of the fair value of 

each class of asset is outlined in Note 21. 

In addition, Council undertakes a formal revaluation (either 

by experienced and appropriately qualified council officers or 

independent experts) of land, buildings, art works and infrastructure 

assets on a regular basis, usually at intervals of 2 or 3 years. The 

basis of valuation is detailed in Note 21. 

Where the assets are revalued, the revaluation increments are 

credited directly to the asset revaluation reserve except to the extent 

that an increment reverses a prior year decrement for that class 

of asset that had been recognised as an expense, in which case 

the increment is recognised as revenue up to the amount of the 

expense. Revaluation decrements are recognised as an expense 

except where prior increments are included in the asset revaluation 

reserve for that class of asset in which case the decrement is taken 

to the reserve to the extent of the remaining increments. Within the 

same class of assets, revaluation increments and decrements within 

the year are offset. 

Land Under Roads 

Land under roads acquired after 30 June 2008 has been brought 

to account in first time using the deemed cost value basis. Council 

does not recognise land under roads that it controlled prior to that 

period in its financial report. 

(i) Cash & Cash Equivalents 

Cash includes cash deposits (including managed funds) which are 

readily convertible to cash on hand and which are used in the cash 

management function on a day-to-day basis, net of any outstanding 

bank overdraft. Managed funds are valued at fair value, being market 

value, at balance date. Any unrealised gains and losses on holdings 

at balance date are recognised as either revenue or expense. 

(j) Investments 

Investments, other than investments in associates, are measured at 

fair value. 

(k) Accounting for Investments in Associates 

Council’s investment in associates is accounted for by the equity 

method as the Council has the ability to influence rather than control 

the operations of the entity. The Council’s share of financial result of 

the entity’s is recognised in the income statement . 

The Monash City Council has a joint venture interest in the Clayton 

Tip Site together with four other Councils. The investment is stated 

as the percentage equity interest in the net assets of the joint 

venture. The same percentage rate is applied to the joint venture’s 

profit or loss to determine Council’s share of that profit or loss. 

Monash City Council 16.80% 

Boroondara City Council 35.22% 

Whitehorse City Council 14.12% 

Glen Eira City Council 21.10% 

Stonnington City Council 12.76% 

100.00% 

Details in relation to this investment are included in Note 9. 

(l) Employee Entitlements 

Wages and Salaries 

Liabilities for wages and salaries and rostered days off (applicable 

to outdoor depot staff) are recognised and measured as the amount 

unpaid at balance date and include appropriate oncosts such as 

Workers’ Compensation and Superannuation.These unconditional 

entitlements as classified as current. 

Annual Leave 

Annual leave entitlements are accrued on a pro-rata basis in respect 

of service provided by employees up to the reporting date. All annual 

leave is measured at nominal value based on the amount, including 

the appropriate costs expected to be paid when settled, and 

classified as current. 

Annual leave expected to be paid later than one year has been 

measured at the present value of the estimated future cash outflows 

to be made for these accrued entitlements. Commonwealth bond 

rates are used for discounting future cash flows. 

Long Service Leave 

Long service leave entitlements payable are assessed at balance 

date having regard to expected employee remuneration rates on 

settlement, employment related oncosts and other factors including 

accumulated years of employment, on settlement, and experience of 

employee departure per year of service. 

Long service leave expected to be paid within 12 months is 

measured at nominal value based on the amount expected to be 

paid when settled. 

Long service leave expected to be paid later than one year has been 

measured at the present value of the estimated future cash outflows to 

be made for these accrued entitlements. Commonwealth bond rates 

are used for discounting future cash flows. 

Superannuation 

A liability is recognised in respect of Council’s present obligation to 

meet the unfunded obligations of defined benefit superannuation 

schemes to which its employees are members. The liability is defined 

as the Council’s share of the scheme’s unfunded position, being the 

difference between the present value of employees’ accrued benefits 

and the net market value of the scheme’s assets at balance date. The 

liability also includes applicable contributions tax of 15%. 

The superannuation expense for the reporting year is the amount of 

the statutory contribution the Council makes to the superannuation 

plan which provides benefits to its employees together with any 

movements (favourable/unfavourable) in the position of any defined 

benefits schemes. Details of these arrangements are detailed in 

Note 34. 

70



Retirement Gratuity 

Council has a retirement gratuity scheme for some Monash City 

Council staff (former Oakleigh City Council staff) in respect of 

unused sick leave. Entitlements under the scheme were frozen as 

at 1 September 1991, and indexed in line with Council’s Enterprise 

Bargaining Agreement. 

(m) Leases 

Operating Leases 

Payments for operating leases are recognised as an expense in the 

year in which they are incurred as this reflects the pattern of benefits 

derived by the Council. 

(n) Allocation between Current and Non-Current 

In the determination of whether an asset or liability is current or 

non-current, consideration is given to the time when each asset or 

liability is expected to be settled. The asset or liability is classified as 

current if it is expected to be settled within the next twelve months, 

being the Council’s operational cycle, or if the Council does not have 

an unconditional right to defer settlement of a liability for at least 12 

months after the reporting date. 

(o) Goods and Services Tax 

Revenues, expenses and assets are recognised net of the amount of 

goods and services tax (GST), except: 

i. where the amount of GST incurred is not recoverable from the 

taxation authority, it is recognised as part of the cost of acquisition of 

an asset or as part of an item of expense; or 

ii. for receivables and payables which are recognised inclusive of GST. 

‘Cash flows are presented in the cash flow statement on a gross basis, 

except for the GST component of investing and financing activities, 

which are disclosed as operating cash flows. 

(p) Impairment of Assets 

At each reporting date, the Council reviews the carrying value of its 

assets to determine whether there is any indication that these assets 

have been impaired. If such an indication exists, the recoverable amount 

of the asset, being the higher of the asset’s fair value less costs to sell 

and value in use, is compared to the assets carrying value. Any excess 

of the assets carrying value over its recoverable amount is expensed to 

the comprehensive income statement, unless the asset is carried at the 

revalued amount in which case, the impairment loss is recognised directly 

against the revaluation surplus in respect of the same class of asset to 

the extent that the impairment loss does not exceed the amount in the 

revaluation surplus for that same class of asset. 

(q) Interest Bearing Loans & Borrowings 

Bills of exchange are recorded at an amount equal to the net 

proceeds received, with the premium or discount amortised over the 

period until maturity. Interest expense is recognised on an effective 

yield basis. Bank loans and other loans are recorded at an amount 

equal to the net proceeds received. Interest expense is recognised 

on an accrual basis. 

(r) Non-Current Assets held for sale 

A non-current asset held for sale (including disposal groups) is 

measured at the lower of its carrying amount and fair value less costs 

to sell, and are not subject to depreciation. Non current assets, disposal 

groups and related liabilities assets are treated as current and classified 

as held for sale if their carrying amount will be recovered through a 

sale transaction rather than through continuing use. This condition is 

regarded as met only when the sale is highly probable and the asset’s 

sale (or disposal group sale) is expected to be completed within 12 

months from the date of classification. 

(s) Intangible Assets 

Council recognises Bed Licences as an Intangible Asset and are valued 

at fair value. 

(t) Web site costs 

Costs in relation to websites are charged as an expense in the period in 

which they are incurred. 

(u) Aged Care Bond Deposits 

Council operates 3 Hostels and 2 Nursing Homes where residents 

may be required to make a entry contribution. Under the terms of the 

occupancy agreements, such contributions are refundable when the 

resident terminates their occupation, less amounts accrued as income 

to Council over the period of the occupancy. The total of contributions 

refundable as at balance date is shown in Notes 23 & 28. 

(v) Rounding 

Unless otherwise stated, amounts in the financial report have been 

rounded to the nearest thousand dollars. 

(w) Investment Property 

Investment property, comprising freehold office complexes, is held 

to generate long-term rental yields. Investment property is measured 

initially at cost, including transaction costs.Costs incurred subsequent to 

initial acquisition are capitalised when it is probable that future economic 

benefit in excess of the originally assessed performance of the asset will 

flow to the Council. Subsequent to initial recognition at cost, investment 

property is carried at fair value, determined annually by independent 

valuers. Changes to fair value are recorded in the comprehensive income 

statement in the period that they arise. Rental income from the leasing 

of investment properties is recognised in the comprehensive income 

statement on a straight line basis over the lease term. 

(x) Financial Guarantee 

Financial guarantee contracts are recognised as a liability at the 

time the guarantee is issued. The liability is initially measured at 

fair value, and if there is material increase in the likelihood that the 

guarantee may have to be exercised, at the higher of the amount 

determined in accordance with AASB 137 Provisions, Contingent 

Liabilities and Contingent Assets and the amount initially recognised 

less cumulative amortisation, where appropriate. In the determination 

of fair value, consideration is given to factors including the probability 

of default by the guaranteed party and the likely loss to Council in 

the event of default. As at 30th June 2010 Council had no financial 

guarantees in place. 

(y) Tender Deposits 

Amounts received as tender deposits and retention amounts controlled 

by Council are recognised as Trust funds until they are returned or 

forfeited (refer to note 25). 

71



Pending Accounting Standards 

The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are not yet effective. 

They have not been adopted in preparation of the financial statements at reporting date. 

Standard / Interpretation 

Summary 

Applicable for annual 

reporting periods 

beginning or ending on 

Impact on departmental 

financial statements 

AASB 2009-5 Further Amendments to Australian Accounting 

Standards arising from the Annual Improvements Project. 

[AASB 5, 8, 101, 107, 117, 118, 136 & 139] 

Some amendments will result in accounting changes for presentation, 

recognition or measurement purposes, while other amendments will 

relate to terminology and editorial changes 

Beginning 1 Jan 2010 

Terminology and editorial changes. 

Impact minor. 


72 

AASB 2009-8 Amendments to Australian Accounting Standards 

– Group Cash-settled Share-based Payment Transactions. 

[AASB 2] 

AASB 2009-9 Amendments to Australian Accounting Standards 

– Additional Exemptions for First-time Adopters [AASB 1} 

AASB 2009-10 Amendments to Australian Accounting 

Standards – Classification of Rights Issues [AASB 132] 

AASB 9 Financial Instruments 


Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 

108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 

and Interpretations 10 & 12] 


Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 

1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] 


Standards arising from Interpretation 19. [AASB 1] 

AASB 2009-14 Amendments to Australian Interpretation – 

Prepayments of a Minimum Funding Requirement [AASB 

Interpretation 14] 

The amendments clarify the scope of AASB 2. Beginning 1 Jan 2010 No impact. AASB 2 does not apply to 

Government departments or entities; 

consequently this Standard does not 

apply. 

Applies to entities adopting Australian Accounting Standards for the first 

time, to ensure entities will not face undue cost or effort in the transition 

process in particular situations. 

The Standard makes amendments to AASB 132, stating that rights 

issues must now be classed as equity rather than derivative liabilities. 

This standard simplifies requirements for the classification and 

measurement of financial assets resulting from Phase 1 of the IASB’s 

project to replace IAS 39 Financial Instruments: Recognition and 

Measurement (AASB 139 Financial Instruments: Recognition and 

Measurement). 

This gives effect to consequential changes arising from the issuance of 

AASB 9. 

This Standard amends AASB 8 to require an entity to exercise judgement 

in assessing whether a government and entities know to be under the 

control of that government are considered a single customer for purposes 

of certain operating segment disclosures .This Standard also makes 

numerous editorial amendments to other AASs. 

Consequential amendment to AASB 1 arising from publication of 

Interpretation 19 

Amendment to Interpretation 14 arising from the issuance of 

Prepayments of a Minimum Funding Requirement 

Beginning 1 Jan 2010 

Beginning 1 Feb 2010 

Beginning 1 Jan 2013 



Beginning 1 Jul 2010 


No impact .Relates only to first time 

adopters of Australian Accounting 

Standards. 

No impact. Departments do not 

issue rights, warrants and options, 

consequently the amendment does 

not impact on the statements. 

Detail of impact is still being 

assessed. 

Detail of impact is still being 

assessed. 

AASB 8 does not apply to 

departments therefore no impact 

expected. Otherwise, only editorial 

changes arsing from amendments 

to other standards, no major impact. 

Impacts of editorial amendments are 

not expected to be significant. 

Departments do not extinguish 

financial liabilities with equity 

instruments, therefore requirements 

of Interpretation 17 and related 

amendments have no impact 

Expected to have no significant 

impact



2010 2009 

$'000 

$'000 

NOTE 2 RATES & CHARGES 

Council uses Site Value (SV) as the basis of valuation of all properties within the municipality. 

The valuation base used to calculate general rates for 2009/10 was $25,189 billion (2008/09 $25,176 billion). The 2009/10 rate in the dollar was $0.002828 (2008/09 

$0.002668). 

Residential 62,836 59,051 

Commercial 3,488 3,529 

Industrial 4,898 4,588 

Cultural & Recreational 197 184 

Supplementary rates & rate adjustments 71 55 

Total 71,490 67,407 

The date of the latest general revaluation of land for rating purposes within the municipality is 1 January 2010 and the valuation was first applied in the rating year 

commencing 1 July 2010. 

The date of the previous general revaluation of land for rating purposes within the municipality was 1 January 2008 and the valuation first applied to the rating period 

commencing 1 July 2008. 

NOTE 3 CHARGES, FEES & FINES 

Service Charges 6,385 6,200 

Parking Fines 3,935 3,547 

Recreation Fees 9,064 8,094 

Waste Transfer Station 843 664 

Building Services Fees 1,318 1,255 

Registration Fees 582 559 

Provision of Council Information Fees 224 186 

Library Fees and Fines 253 242 

Town Planning Fees 639 546 

Bin Charges 830 780 

Lease Charges 604 631 

Hire and Rental Charges 741 717 

Other Fees and Charges 622 595 

Total 26,040 24,016 

73



NOTE 4 CONTRIBUTIONS 


$’000 $’000 

Cash items 

Developers Public Open Space 1,307 2,115 

Developers Drainage 649 590 

Developers Car Parking 343 960 

Other Infrastructure 829 1,368 

3,128 5,033 

Non-Cash items 

Land Under Roads - 365 

Developers Public Open Space - land 528 3,957 

Developers Roads - 472 

Art Donations 344 426 

872 5,220 

Total 4,000 10,253 


74



NOTE 5 GRANTS 


$'000 

$'000 

Grants were received in respect of the following: 

Summary of grants 

Federal funded grants 14,256 10,346 

State funded grants 16,751 15,367 

Other 106 224 

Total 31,113 25,937 

Recurrent 

Grants Commission Allocation 3,263 4,021 

Grants Commission - Local Roads Funding 943 1,167 

Community Programs 2,495 2,294 

Residential Care 7,178 7,684 

Road Maintenance 822 949 

Libraries 1,006 930 

Monash Gallery of Art 81 62 

Metro Access Project 101 98 

HACC - Adult Day Care 268 260 

HACC - Senior Citizen Services 212 153 

HACC - Co-ordination and Planning Assessment 812 786 

HACC - General Home Care/Maintenance 4,949 4,778 

Food Services 185 197 

Youth Services 232 272 

School Crossings 245 254 

Immunisation 133 200 

Other 53 73 

Total Recurrent 22,978 24,178 

75



NOTE 5 GRANTS (cont.) 


$'000 

$'000 

Non- Recurrent 

Local Roads Funding 106 224 

Monash Gallery of Art 6 - 

Monash Aquatic and Recreation Centre 320 50 

Community Programs 25 - 

Capital Grants - Major Capital Works 7,536 1,390 

Economic Development 98 81 

Other 44 14 

Total Non-Recurrent 8,135 1,759 

Total 31,113 25,937 

Conditions on Grants 

Grants recognised as revenue during the year that were obtained on condition that they be 

expended in specified manner that had not occurred at balance date were: 

Family and Children - 20 

Infrastructure Strategy - 11 

Total - 31 


76



NOTE 6 INTEREST REVENUE 


$’000 $’000 

Investment Interest 1,984 2,442 

Rates and Charges Interest 314 334 

Other Interest 206 227 

Total 2,504 3,003 

NOTE 7 OTHER REVENUE 

Chargeable Works 563 714 

Monash Gallery of Art 242 211 

Recoupment of Valuation Services 138 610 

Residential Care Facilities - Refurbishment Recovery 216 137 

Recoupment of Legal fees from Rate Debtors 7 135 

Recoupment of Operating Expenses 36 95 

Royalties & Dividends 73 52 

Facility Hire Monash Halls Management Committee 360 60 

Other 299 196 

Total 1,934 2,210 

NOTE 8 NET GAIN ON DISPOSAL OF PROPERTY, PLANT & EQUIPMENT 

Plant & Equipment 

Proceeds from Sale of Assets 1,240 1,032 

Written Down Value of Assets Disposed (978) (1,046) 

Gain/(Loss) on Disposal of Plant & Equipment 262 (14) 

Land for Resale 


Written Down Value of Assets Disposed (868) (1,898) 

Gain on Disposal of Land for Resale 254 238 

Furniture & Office Equipment incl. library books 

Proceeds from Sale of Assets 9 7 

Written Down Value of Assets Disposed - - 

Gain on Disposal of Furniture & Office Equipment incl. Library books 9 7 

Total 


Written Down Value of Assets Disposed (1,846) (2,944) 

Total Gain on Disposal of Property, Plant & Equipment 525 231 

77



NOTE 9 INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD 

Regional Landfill Clayton South Unincorporated Joint Venture 

Under an agreement dated 23 September 1986, the former City of Oakleigh ( now vested in the City of Monash) contracted to purchase 16.8% of all of 654 - 718 Clayton Road, South Clayton (Clayton Tip Site) from the City 

of Camberwell for $840,069. An initial deposit of $168,014 was paid by Council and the residual was paid in 16 equal half yearly instalments which commenced on 31 October 1988 and concluded on 30 April 1996. 

In addition to the capital cost, Monash City Council under clause 2.2 of the agreement is required to either pay 16.8% of the net operating deficit or receive 16.8% of the net operating surplus. Monash City Council’s share of 

the operating profit for the year ended 30 June 2010 amounts to $31k which has been recognised as income in the Income Statement. 

The value of the investment in the joint venture has been revalued at year end to reflect Council’s share of net assets recorded in the Unaudited Accounts of the Joint Venture at 30 June 2010 and is included in the Balance 

Sheet as follows: 

REGIONAL LANDFILL CLAYTON SOUTH JOINT VENTURE 

Balance Sheet 

As at 30 June 2010 


$'000 

$'000 

Current Assets 5,004 2,601 

Current Liabilities (542) (329) 

Net Current Assets 4,462 2,272 

Non-Current Assets 11,744 20,542 

Non-Current Liabilities (850) (811) 

Net Assets 15,356 22,003 

Contribution-Re Land 4,000 4,000 

Reserves 2,328 9,164 

Retained earnings 5,369 5,180 

Partners advance accounts 3,659 3,659 

Equity 15,356 22,003 

Share of Monash City Council (16.8%) 


Movements 

Share in Joint Venture Equity as at 1 July, 2009 3,697 3,635 

Share of net profits/(loss) of joint venture 31 62 

Share of Asset Revaluation Reserve of joint venture (1,148) - 

Increase/(Decrease) for the year (1,117) 62 

Share in Joint Venture Equity as at 30 June 2010 2,580 3,697 

78




$'000 

$'000 

NOTE 10 EMPLOYEE BENEFITS 

Salaries & Wages 52,505 49,232 

Superannuation 4,399 4,071 

Fringe Benefits Tax 227 223 

Long Service Leave 1,418 1,142 

Workcover 1,004 1,020 

59,553 55,688 

Less: Amounts capitalised (non-current assets constructed by Council) (593) (494) 

Total 58,960 55,194 

NOTE 11 MATERIALS, SERVICES & CONTRACTS 

Materials and Contract Costs 33,698 32,498 

Consultants/Contractors 2,079 1,876 

Operating Capital Expense 2,666 2,748 

Utilities 2,879 2,856 

Metropolitan Fire & Emergency Services Board 2,234 2,086 

Legal Costs 987 924 

Monash Community Facilities 2,040 2,141 

Insurance 1,077 1,180 

Computer Maintenance Costs 906 1,014 

Equipment Maintenance Costs 945 940 

Bad & Doubtful Debts 22 79 

Other 1,471 1,271 

Total 51,004 49,613 

NOTE 12 DEPRECIATION 

Buildings 6,011 6,022 

Plant and Equipment 1,497 1,441 

Furniture and Fittings 1,986 1,913 

Roads & Pavements 7,404 6,944 

Drains 3,013 2,981 

Library Books 959 963 

Bridges 10 10 

Other Infrastructure 2,020 1,825 

Total 22,900 22,099 

79



NOTE 13 FINANCE COSTS 


$'000 

$'000 

Loan Interest 653 670 

Other Interest 48 57 

Total 701 727 

NOTE 14 OTHER EXPENSES 

Audit (See Note 35) 220 257 

Councillor Allowances 355 320 

Lease Payments 736 793 

Non-Current Asset Write-offs 56 293 

Total 1,367 1,663 

NOTE 15 CASH & CASH EQUIVALENTS 

Cash at bank 1,891 2,947 

Cash on hand 16 15 

Short term deposits 44,011 44,474 

Total 45,918 47,436 

NOTE 16 FINANCIAL ASSETS 

Current 

Unlisted Shares - Purchasing Australia & Community Chef 2 2 

Total 2 2 

NOTE 17 TRADE & OTHER RECEIVABLES 


80 

Current 

Rates Receivable 2,099 2,016 

Less: Provision for Doubtful Debts - - 

2,099 2,016 

Parking Infringements 

3,035 3,280 

Less: Provision for Doubtful Debts (2,588) (2,918) 

447 362 

Sundry debtors 

4,417 3,885 

Less: Provision for Doubtful Debts (55) (55) 

4,362 3,830 

Total 6,908 6,208



NOTE 17 TRADE & OTHER RECEIVABLES (cont.) 


$’000 $’000 

Ageing of Sundry Debtors 

The ageing of the Council's Sundry Debtors at reporting date was: 

Current (not yet overdue) 3,580 2,648 

Past due by up to 30 days 639 497 

Past due between 31 and 180 days 108 601 

Past due between 181 and 365 days 89 138 

Past due by more than 1 year 1 1 

Total Sundry Debtors 4,417 3,885 

Movement in Sundry Debtors Provision for Doubtful Debts 

Balance at the beginning of the year 55 111 

Provisions adjusted during the year - (56) 

Balance at the end of year 55 55 

NOTE 18 INVENTORY 

Hardware 5 10 

Fuels 3 2 

Construction Consumables 5 3 

General 36 32 

Total 49 47 

NOTE 19 NON-CURRENT ASSETS AS HELD FOR SALE 

Balance at beginning of financial year 590 951 

Transfer from Property, Plant & Equipment 1,222 1,450 

Capitalised development costs written back (108) - 

Capitalised development costs 45 343 

1,749 2,744 

Less Carrying Amount of Property, Plant & Equipment Sold (868) (2,154) 

Balance at end of financial year 881 590 

NOTE 20 OTHER ASSETS 

Accrued Income 2,246 2,160 

Prepayments 424 577 

Total 2,670 2,737 

81



NOTE 21 PROPERTY, PLANT & EQUIPMENT 

(a) Summary 2010 

Land 

Land 

under 

roads Buildings 

Plant & 

Equipment 

Furniture 

& 

Fittings Art 

Library 

Books 

Roads & 

Pavements Drains Bridges 

Other 

Infrastructure Total 

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

Cost and Valuation 

Cost and Valuation 1 July 2009 1,071,685 365 262,674 12,583 22,057 3,593 7,042 649,881 302,381 1,075 47,821 2,381,157 

Additions - - 12,325 2,877 2,263 49 1,026 3,350 1,210 - 5,525 28,625 

Recognition of Land Under Roads - - - - - - - - - - - - 

Disposal of Assets - - (85) (2,523) (959) - (1,078) - - - - (4,645) 

Transfer to Land for Resale (1,222) - - - - - - - - - - (1,222) 

Recognition of Roads from Developers 528 - - - - - - - - - - 528 

Donated Assets - - - - - 344 - - - - - 344 

Asset Revaluation Increment/(Decrement) 182,218 - 15,638 - - 755 - - (1,980) - - 196,631 

Cost and Valuation 30 June 2010 1,253,209 365 290,552 12,937 23,361 4,741 6,990 653,231 301,611 1,075 53,346 2,601,418 

Accumulated Depreciation 

Accumulated Depreciation 1 July 2009 - - 117,461 5,638 13,379 - 4,739 235,505 136,374 459 17,220 530,775 

Depreciation & Amortisation (NOTE 12) - - 6,011 1,497 1,986 - 959 7,404 3,013 10 2,020 22,900 

Depreciation Adjustment on Disposal - - (39) (1,544) (951) - (1,078) - - - - (3,612) 

Asset Revaluation Increment/(Decrement) - - (161) - - - - - 730 - - 569 

Accumulated Depreciation 30 June 2010 - - 123,272 5,591 14,414 - 4,620 242,909 140,117 469 19,240 550,631 

Written Down Value 30 June 2010 1,253,209 365 167,280 7,346 8,947 4,741 2,370 410,322 161,494 606 34,106 2,050,787 

The valuations for land & buildings effective from 30 June 2010, were performed by Council’s Valuation contractor, Westlink Consulting, qualified independent valuers, and are based on the principles of AASB 116 taking into 

account continued Council use. 

The valuations for Roads & Pavements were performed by Monash City Council Engineer John Trevorah (C.P. Eng) and are based on fair value at 30 June 2009, reflective of road construction contract rates. 

The valuation for Drains was performed by Council’s Manager Transport and Infrastructure Planning, James Paterson (C.P. Eng, Grad Dip Municipal Engineering and Management) and are based on current drainage 

construction rates as at 30 June 2010. 


The valuation of Artwork as at 30 June 2010 was performed by Dr Shaune Lakin,Director Monash Gallery of Art and Stephen Zagala ,Curator Monash Gallery of Art. 

The valuation of Bridges was performed by Monash City Council Engineer John Trevorah (C.P. Eng) and are based on current replacement rates at 30 June 2009. 

Other Infrastructure includes Street Assets/Furniture, Retaining Walls and Bike paths, which are recorded at cost. 

Plant & Equipment and Furniture & Fittings are recorded at cost. Library Books are recorded at cost. 

Land under roads is valued at deemed cost. Deemed cost is based on Council valuations at 30 June 2008 for land under roads at the date acquired for subsequent acquisitions using site values adjusted for englobo 

(undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services. 

82




(b) Summary 2009 

Land 

under 

Plant & Furniture 

Library Roads & 

Other 

Land roads Buildings Equipment & Fittings Art Books Pavements Drains Bridges Infrastructure Total 

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

Cost and Valuation 

Cost and Valuation 1 July 2008 1,069,220 - 254,709 12,200 23,077 3,118 7,024 610,898 300,265 1,075 43,734 2,325,320 

Additions 7 - 9,437 2,743 1,901 50 945 3,750 2,116 - 4,101 25,050 

Recognition of Land Under Roads - 365 - - - - - - - - - 365 

Disposal of Assets (49) - (1,472) (2,360) (2,921) - (927) - - - (14) (7,743) 

Transfer to Land for Resale (1,450) - - - - - - - - - - (1,450) 

Recognition of Roads from Developers - - - - - - - 472 - - - 472 

Donated Assets 3,957 - - - - 425 - - - - - 4,382 

Asset Revaluation Increment/(Decrement) - - - - - - - 34,761 - - - 34,761 

Cost and Valuation 30 June 2009 1,071,685 365 262,674 12,583 22,057 3,593 7,042 649,881 302,381 1,075 47,821 2,381,157 

Accumulated Depreciation 

Accumulated Depreciation 1 July 2008 - - 112,571 5,509 14,373 - 4,703 210,703 133,393 449 15,408 497,109 

Depreciation & Amortisation (NOTE 12) - - 6,022 1,441 1,913 - 963 6,944 2,981 10 1,825 22,099 

Depreciation Adjustment on Disposal - - (1,132) (1,312) (2,907) - (927) - - - (13) (6,291) 

Asset Revaluation Increment/(Decrement) - - - - - - - 17,858 - - - 17,858 

Accumulated Depreciation 30 June 2009 - - 117,461 5,638 13,379 - 4,739 235,505 136,374 459 17,220 530,775 

Written Down Value 30 June 2009 1,071,685 365 145,213 6,945 8,678 3,593 2,303 414,376 166,007 616 30,601 1,850,382 

The valuations for land & buildings effective from 30 June 2008, were performed by Council’s Valuation contractor, Westlink Consulting, qualified independent valuers, and are based on the principles of AASB 116 taking into 

account continued Council use. 

The valuations for Roads & Pavements were performed by Monash City Council Engineer John Trevorah (C.P. Eng) and are based on fair value at 30 June 2009, reflective of road construction contract rates. 

The valuation for Drains was performed by Council’s Manager Transport and Infrastructure Planning, James Paterson (C.P. Eng, Grad Dip Municipal Engineering and Management) and are based on current drainage 

construction rates as at 30 June 2008. 

The valuation of Artwork was performed by Helen Frajman, approved valuer for the Australian Government Cultural Gifts Program as at 30 June 2004. 

The valuation of Bridges was performed by Monash City Council Engineer John Trevorah (C.P. Eng) and are based on current replacement rates at 30 June 2009. 

Other Infrastructure includes Street Assets/Furniture, Retaining Walls and Bike paths, which are recorded at cost. 

Plant & Equipment and Furniture & Fittings are recorded at cost. Library Books are recorded at cost. 

Land under roads is valued at deemed cost. Deemed cost is based on Council valuations at 30 June 2008 for land under roads at the date acquired 

for subsequent acquisitions using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services. 

83




$'000 

$'000 


(c) Fixed Assets Detail 

at Cost 104,131 104,731 

at Deemed cost 365 365 

at Council valuation as at 30 June 2004 - 1,822 


at Council valuation as at 30 June 2009 650,956 650,628 

at Council valuation as at 30 June 2010 1,845,966 

Total 2,601,418 1,310,551 

Less: Accumulated Depreciation 550,631 530,775 

Total Written Down and Carrying Value 2,050,787 779,776 

Land 

at cost - 7 


at Council valuation as at 30 June 2010 1,253,209 - 

Total 1,253,209 1,079 

Land Under Roads 

at Deemed cost 365 365 

Total 365 365 

Buildings 

at cost 3,541 10,562 


at Council valuation as at 30 June 2010 287,011 - 

290,552 262,675 


Total 167,280 145,214 


84 

Plant & Equipment 

at cost 12,937 12,583 


Total 7,346 6,944 

Furniture & Fittings 

at cost 23,361 22,056 


Total 8,947 8,679




$'000 

$'000 

NOTE 21 PROPERTY, PLANT & EQUIPMENT (Cont.) 

(c) Fixed Assets Detail 

Art 

at cost - 1,771 


at Council valuation as at 30 June 2010 4,741 - 

4,741 3,593 

Total 4,741 3,593 

Library Books 

at cost 6,990 7,042 


Total 2,370 2,304 

Roads & Pavements 

at valuation 30 June 2009 649,881 649,553 

at cost 3,350 329 

653,231 649,882 


Total 410,322 414,375 

Drains 

at cost 606 2,561 

at valuation 30 June 2008 - 299,820 

at valuation 30 June 2010 301,005 - 

301,611 302,381 


Total 161,494 166,007 

Bridges 

at valuation 30 June 2009 1,075 1,075 

at valuation 30 June 2006 - - 

Less: Accumulated Depreciation 469 459 

Total 606 616 

Other Infrastructure 

at cost 53,346 47,821 


Total 34,106 30,601 

85



NOTE 22 INTANGIBLE ASSETS 


$'000 

$'000 

Aged Care Bed Licences 

Balance at beginning of the financial year 11,220 11,220 

Bed Licence Revaluation Decrement 2010 (1,155) - 

Sale of Bed Licences 2010 (2,475) - 

Total 7,590 11,220 

NOTE 23 TRADE & OTHER PAYABLES 

Employee Costs 432 821 

Material, Services & Contracts 6,055 5,779 

Capital Costs 4,501 4,564 

Total 10,988 11,164 

NOTE 24 TRUST FUNDS & DEPOSITS 

Refundable Construction/Other Deposits 4,898 4,470 

Unclaimed Monies 27 3 

Refundable Building/Security Deposits 54 52 

Oakleigh Cemetery Trust Fund 1 1 

Other 18 69 

Total 4,998 4,595 


86 

NOTE 25 INCOME IN ADVANCE 

Capital Funding - Building 65 2,934 

HACC Funding-Capital 142 128 

MARC/ORC/CAHC Membership & Learn-to-Swim 675 598 

Infrastructure 432 - 

Other 171 198 

Total 1,485 3,858



NOTE 26 PROVISIONS 


$'000 

$'000 

Current 

All annual leave and the long service leave entitlements representing 10 or more years of continuous service 

Short-term employee benefits, that fall due within 12 months after the end of the period measured at nominal value 4,443 4,544 

Other long-term employee benefits that do not fall due within 12 months after the end of the period measured at present value 5,944 5,465 

Other Employee Benefits 335 274 

Other 57 169 

Total 10,779 10,452 

Non-Current 

Long Service Leave (Notes 1(l)) 2,349 1,912 

Total 13,128 12,364 

NOTE 27 INTEREST-BEARING LOANS & BORROWINGS 

Current 

Bank loans (Secured) 3,200 3,200 

3,200 3,200 

Non Current 

Bank loans (Secured) 6,800 6,800 

6,800 6,800 

Total 10,000 10,000 

Security for Borrowings 

Bank Loans are secured against the general rates of the Council. 

Loan borrowings at reporting date are payable: 

Not later than one year 3,200 3,200 

Later than one year but not later than two years 1,700 1,700 

Later than two years but not later than five years 5,100 5,100 

Total 10,000 10,000 

87




$’000 $’000 

NOTE 27 INTEREST-BEARING LOANS & BORROWINGS (Cont.) 

Financing Arrangements 

Unrestricted access was available as at the reporting date to the following lines of credit: 

Total facilities 

Bank Overdraft 3,000 3,000 

Bank Loans 10,000 10,000 

Total 13,000 13,000 

Used at reporting date 

Bank Loans 10,000 10,000 

Total 10,000 10,000 

Unused at reporting date 

Bank Overdraft 3,000 3,000 

Total 3,000 3,000 

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Interest rates on facilities may be fixed or variable. 

NOTE 28 REFUNDABLE DEPOSITS 

Refundable Deposit for hostels and nursing homes 19,794 19,810 

Total 19,794 19,810 

NOTE 29 RESERVES 

(a) Reserves Balances 

Discretionary Reserve 

Monash Halls Management Committee - 154 

Aged Residential Care Facilities Upgrade 6,240 3,008 


88 

Statutory Reserves 

Reserve Funds as at 30 June 2010 are fully funded by cash investments (Note 15) 

Drainage - to be used on improving drainage schemes. 4,255 3,946 

Parking - to provide parking spaces in District Centres 1,690 1,706 

12,185 8,814 

Asset Revaluation Reserve 1,133,946 940,187 

Total 1,146,131 949,001



NOTE 29 RESERVES (cont.) 

(b) Movements 


$'000 

$'000 

Discretionary Reserves 

Monash Halls Management Committee 

Balance at beginning of the financial year 154 155 

Transfer to accumulated surplus (154) - 

Net Asset Revaluation Increment - (1) 

Balance at end of the financial year - 154 

Aged Residential Care Facilities Upgrade 


Transfer from accumulated surplus 3,766 1,000 

Transfer to accumulated surplus (534) (492) 

Balance at end of the financial year 6,240 3,008 

Statutory Reserves 

Drainage 


Transfer from accumulated surplus 650 589 

Transfer to accumulated surplus (341) (779) 


Parking 

Balance at beginning of the financial year 1,706 391 

Transfer from accumulated surplus 343 1,315 

Transfer to accumulated surplus (359) - 


Public Open Space 

Balance at beginning of the financial year - - 

Transfer from accumulated surplus 1,307 2,115 

Transfer to accumulated surplus (1,307) (2,115) 

Balance at end of the financial year - - 

Asset Revaluation Reserve 


Net Asset Revaluation Increment 196,062 16,903 

Bed Licence revaluation decrement (1,155) - 

Joint Venture asset revaluation decrement (1,148) - 

Balance at end of the financial year (refer below) 1,133,946 940,187 

89



NOTE 29 RESERVES (cont.) 

(b) Movements (cont.) 


$'000 

$'000 

The reserve balances as at end of reporting period 

Land 901,040 718,822 

Buildings 42,628 26,829 

Plant & Equipment 11 11 

Library Books 250 250 

Roads 133,139 133,139 

Drains 44,788 47,498 

Art 1,786 1,031 

Other Infrastructure 7,997 7,997 

Bed Licences 1,610 2,765 

Investment in Joint Venture 697 1,845 

Total 1,133,946 940,187 


90



NOTE 30 COMMITMENTS 

The Council has entered into the following commitments: 


$'000 

$'000 

Operating 

Traffic & Parking 2,600 922 

Golf Course Management 292 459 

Animal Control 665 242 

Supply Meals/Foodstuffs 245 1,299 

Cleaning Services 1,379 1,484 

Repairs & Maintenance 3,675 4,987 

Utilities 1,704 3,109 

Printing & Distribution 580 1,043 

Domestic Waste Collection 1,941 5,760 

Recycling 8,302 10,262 

Other Operating Services 5,119 5,524 

26,502 35,091 

Capital 


Infrastructure 838 200 

Roads 401 835 

Design 289 - 

5,131 7,876 

Total 31,633 42,967 

Commitments at Reporting Date are Payable 

Not later than one year 23,239 26,384 

Later than one year but not later than two years 5,558 11,825 


Later than 5 years 877 777 

Total 31,633 42,967 

91




NOTE 31 OPERATING LEASE COMMITMENTS 

At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use 

within Council activities. 

(These obligations are not recognised as liabilities) 

Not later than one year 703 669 

Later than one year but not later than two years 710 669 


Later than five years 7,087 7,759 

Total 10,436 11,104 

$'000 

$'000 

Note 32 CONTINGENT LIABILITIES & ASSETS 

Contingent Liabilities 

(a) Contingent Liabilities Arising from Public Liability 

As a large local authority with ownership of numerous parks, reserves, roads and other land holdings, 

the Council is regularly served with claims and demands allegedly arising from incidents which occur 

on land belonging to the Council. There are a number of outstanding claims against the Council in this 

regard. The Council carries $400 million of public liability insurance and has an excess of $10,000 per 

claim on this policy. Therefore, the maximum liability of the Council in any single claim is the extent of its 

excess. The primary insurer is Civic Mutual Plus. There are no claims which Council is aware of which 

would fall outside the terms of the Council’s policy. 

(b) Contingent Liabilities Arising from Professional Liability 

As a large local authority with statutory regulatory responsibilities, including the responsibility of issuing 

permits and approvals, the Council at times is served with claims and demands for damages allegedly 

arising from the actions of the Council or its officers. There are no outstanding claims against Council in 

this regard. The Council carries $300 million of professional indemnity insurance and has an excess of 

$15,000 per claim on this policy. Therefore the maximum liability of the Council in any single claim is the 

extent of its excess. The primary insurer is Civic Mutual Plus. There are no claims which Council is aware 

of which would fall outside the terms of the Council’s policy. 

(c) Guaranteed Loans 

Council has no guaranteed bank loans for community bodies covering development of assets on Council 

property. 


92



NOTE 33 RELATED PARTY 

TRANSACTIONS 

(i) Names of persons holding the position of a Responsible Person at 

the City of Monash during the reporting period are: 

Councillors 

Councillor Charlotte Baines. (Mayor) 

Councillor Paul Klisaris 

Councillor Joy Banerji 

Councillor Stephen Dimopoulos 

Councillor Micaela Drieberg 

Councillor Geoff Lake 

Councillor Jieh Yung Lo 

Councillor Greg Male 

Councillor Denise McGill OAM 

Councillor Tom Morrissey JP 

Councillor Stefanie Perri 

Chief Executive Officer 

David Conran 

(ii) 


Remuneration of Responsible 

Persons 

Annualised remuneration of responsible 

persons were 

within the following bands: No. No. 

$00,001 - $10,000 - 4 

$10,001 - $20,000 - 4 

$20,001 - $30,000 9 6 

$30,001 - $40,000 - - 

$40,001 - $50,000 1 - 

$50,001 - $60,000 - - 

$60,001 - $70,000 - - 

$70,001 - $80,000 1 1 

$310,001 - $320,000 - - 

$320,001 - $330,000 - - 

$330,001 - $340,000 - 1 

$340,001 - $350,000 1 - 

Total 12 15 

$'000 $'000 

Total Remuneration for the reporting 708 653 

period for Responsible Persons included 

above amounted to: 

(iii) Senior Officers Remuneration 

A Senior Officer other than a Responsible Person, is an 

officer of Council who has management responsibilities and 

reports directly to the Chief Executive Officer or whose total 

annual remuneration exceeds $120,000. 

The number of Senior Officers other than the Responsible 

Persons, are shown below in their relevant income bands: 

Income Range: No. No. 

$120,000 - $129,999 6 5 

$130,000 - $139,999 5 4 

$140,000 - $149,999 3 3 

$150,000 - $159,999 1 - 

$160,000 - $169,999 - 1 

$170,000 - $179,999 1 1 

$180,000 - $189,999 - 1 

$190,000 - $199,999 - 2 

$200,000 - $209,999 4 - 

Total 20 17 

$'000 $'000 

Total Remuneration for the reporting 

year for Senior Officers included above, 

amounted to: 

2,991 2,513 

(iv) No loans have been made, guaranteed or secured by the 

Council to a Responsible Person of the Council during the 

reporting period 

(v) 

No retirement benefits were paid by the Council in connection 

with the retirement of Responsible Persons during the reporting 

period 

(vi) Other related party transactions requiring disclosure have been 

considered and there are no matters to report. 

93




94 

NOTE 34 SUPERANNUATION 

Monash City Council makes employer superannuation contributions 

in respect of its employees to the Local Authorities Superannuation 

Fund (the Fund). Obligations for contributions are recognised as 

an expense in profit or loss when they are due. The Fund has two 

categories of membership, accumulation and defined benefit, each 

of which is funded differently. 

The Fund’s accumulation category, Vision Super Saver, receives 

both employer and employee contributions on a progressive 

basis. Employer contributions are based on a fixed percentage of 

employee earnings (9% required under Superannuation Guarantee 

Legislation). No further liability accrues to the employer as the 

superannuation benefits accruing to employees are represented by 

their share of the net assets of the Fund. 

Defined Benefit Plan 

The Fund’s Defined Benefit Plan is a multi-employer sponsored plan. 

As the Plan’s assets and liabilities are pooled and are not allocated 

by employer, the Actuary is unable to reliably allocate benefit 

liabilities, assets and costs between employers. As provided under 

Paragraph 32 (b) of AASB 119, Council does not use defined benefit 

accounting for these contributions. 

Monash City Council makes employer contributions to the defined 

benefit category of the Fund at rates determined by the Trustee 

on the advice of the Fund’s Actuary. On the basis of the results of 

the most recent full actuarial investigation conducted by the Fund’s 

actuary as at 31 December 2008, Council makes the following 

contributions:- 

• 9.25% of members’ salaries (same as previous year); 

• the difference between resignation and retrenchment benefits 

paid to any retrenched employees, plus contribution tax (same as 

previous year); 

Fund surplus or deficit (ie the difference between fund assets 

and liabilities) are calculated differently for funding purposes (ie 

calculating required contributions) and for for the calculation of 

accrued benefits as required in AAS 25 to provide the values needed 

for the AASB 119 disclosure in a council’s financial statements. 

AAS 25 requires that the present value of the benefit liability 

which is calculated in respect of membership completed at the 

calculation date makes no allowance for future benefits that may accrue. The actuarial investigation concluded that although the Net Market 

Value of Assets was in excess of Accrued Benefits at 31 December 2008, based on the assumptions adopted, there was a shortfall of $71 

million when the funding of future benefits was also considered. However, the council has been advised that no additional contributions 

will be required as at 30 June 2010. The Actuary will undertake the next actuarial investigation as at 30 June 2010 to ascertain if additional 

contributions are required. 

The result of the actuarial review is expected to be finalised during October 2010. Should the review identify a funding shortfall requiring 

additional contributions, the Council will be notified of any amount payable by November 2010 for payment on 1 July 2011. A further actuarial 

review will be undertaken as at 30 June 2011. Based on the result of this further review, a detailed funding plan will be developed and 

implemented to achieve the target of fully funding the Fund by 31 December 2013. 

Accounting Standard Disclosure 

The Fund’s liability for accrued benefits was determined by the Actuary at 31 December 2008 pursuant to the requirements of Australian 

Accounting Standard AAS 25 as follows: 

31-Dec-08 

$’000 

Net Market Value of Assets 3,630,432 

Accrued Benefits (per accounting standards) 3,616,422 

Difference between Assets and Accrued Benefits 14,010 

Vested Benefits (Minimum sum which must be paid to members when they leave the fund) 3,561,588 

The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were: 

Net Investment Return 

Salary Inflation 

Price Inflation 

8.50% p.a. 

4.25% p.a. 

2.75% p.a. 


Fund $'000 $'000 

Defined benefit plans 

Employer contributions to Local Authorities Superannuation Fund 737 715 

737 715 

Accumulation funds 

Employer contributions to Local Authorities Superannuation Fund 3,695 3,356 

Total Employer contributions paid at reporting date 3,695 3,356



NOTE 35 AUDITOR’S REMUNERATION 

Audit services during the year were conducted by the Victorian Auditor General and 

his agents. The remuneration costs relating to these services are as follows: 


$'000 

$'000 

Audit fee to conduct external audit - Victorian Auditor General 52 51 

Audit fees & associated costs 168 206 

Total 220 257 

NOTE 36 RECONCILIATION OF CASHFLOWS FROM OPERATING ACTIVITIES TO SURPLUS/(DEFICIT) 

Surplus/(Deficit) for the Period 2,705 3,823 

Depreciation 22,900 22,099 

Net (Gain)/Loss on disposal of Property, Plant and Equipment (525) (231) 

Non-Current Assets Written off 293 293 

Developer contributions of Land Under roads - (365) 

Developer contributions of Land (528) (3,957) 

Developer contributions of Roads - (472) 

Art Donations (344) (426) 

Finance costs 701 727 

Change in operating assets and liabilities 

(Increase)/Decrease in Receivables (863) (1,191) 

Decrease/(Increase) in Prepayments 153 (183) 

(Increase)/Decrease in Inventories 49 71 

Decrease in Investments (31) (62) 

Increase/(Decrease) in Payables 196 (45) 

Increase/(Decrease) in Current Provisions (2,373) 2,697 

(Decrease)/Increase in Non Current Provisions 421 367 

Net cash provided by operating activities 22,754 23,144 

NOTE 37 ADJUSTMENTS DIRECTLY TO EQUITY 

Council made no adjustments directly to equity in 2009/10 or 2008/09 financial years. 

95



NOTE 38 FINANCIAL INSTRUMENTS 

(a) 

Terms, conditions and accounting policies 

The economic entity’s accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at the balance date, 

are as follows: 

Recognised Financial 

Instruments NOTE Accounting Policies Terms and Conditions 

(i) Financial Assets 

Cash & Cash Equivalents 15 These include cash at bank and short term deposits which are stated at the 

lower of cost or net realisable value. Interest is recognised in the income 

statement when earned. 

Investments held in Managed Funds & Authorised Deposit- taking Institutions 

Trade and Other Receivables 17 Receivables are carried at nominal amounts due less any provision for 

doubtful debts. A provision for doubtful debts is recognised when collection of 

the full nominal amount is no longer probable. 

(ii) Financial Liabilities 

Council is able to withdraw amounts at call. 

Other Debtors are amounts due to Council for the provision of other services. 

Terms are 14 days for Home Care debtors and all others 30 days. No interest 

is charged on overdue Other Debtors. 

Bank Overdrafts 27 The bank overdraft is utilised during the year and is carried at the principal 

amount. Interest is charged as an expense as it accrues. 

Interest-Bearing Loans & Borrowings 27 The bank loans are carried at the principal amount. Interest is charged as an 

expense as it accrues. 

Interest is charged at the bank's benchmark rate. Details of the security over 

the bank overdrafts are set out in NOTE 27. 

Council Debt Portfolio is structured into interest only loans with a floating debt 

of $1.5 million and fixed debt of $8.5 million. 

Fixed debt is divided into even amounts maturing each year over a period of 

5 years from 30/6/2011 to 30/6/2015 inclusive. 

Details of the security over the bank loans are set out in NOTE 27. 

Payables 23 Liabilities are recognised for amounts to be paid in the future for goods and 

services received, whether or not billed to the economic entity. 

Trust Funds & Deposits 24 These relate to deposits required to be placed with Council to perform 

particular services. These are refunded at the end of the relevant period and 

are valued at their nominal amount. 

Liabilities are normally settled on net 30 day terms or less where appropriate. 

Liabilities are settled upon expiry of the relevant qualifying period. 


96



NOTE 38 FINANCIAL INSTRUMENTS (CONT.) 

(b) Interest Rate Risk 

The economic entity’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at the balance date, are as follows: 

Financial Instruments Floating Interest 

Rate 

Fixed Interest Maturing in: Non-interest Bearing Total Carrying 

Amount 

Weighted Average 

Effective Interest Rate 

1 year or less Over 1 to 5 years 

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

% % % % % % $’000 $'000 $’000 $'000 % % 

(i) Financial Assets 

Cash & Cash Equivalents 5.91 4.05 - - - - - - 45,918 47,436 5.91 4.05 

Other Financial Assets - - - - - - - - 2 2 - - 

Trade and Other Receivables - - 10.00 12.00 - - 4,362 3,830 6,908 6,208 4.24 4.41 

Investment in Joint Venture - - - - - - 2,580 3,697 2,580 3,697 - - 

Total financial assets 6,942 7,527 55,408 57,343 

(ii) Financial Liabilities 

Interest-Bearing Loans & Borrowings 5.13 3.52 6.51 5.80 7.41 7.27 10,000 10,000 10,000 10,000 6.91 6.45 

Trade and Other Payables - - - - - - 10,988 11,164 10,988 11,164 - - 

Trust Funds & Deposits - - - - - - 4,998 4,595 4,998 4,595 - - 

Refundable Deposits - - - - - - 19,794 19,810 19,794 19,810 - - 

Total financial liabilities 45,780 45,569 45,780 45,569 

(c) Net Fair Values 

Net Fair Values equate to the carrying values in the Balance Sheet. 

Financial Instruments Total carrying amount as per Balance Sheet Aggregate net fair value 

2010 2009 2010 2009 

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

(1) Financial assets 

Cash and cash equivalents 45,918 47,436 45,918 47,436 

Other financial assets 2 2 2 2 

Trade and other receivables 4,362 3,830 4,362 3,830 

Other assets 2,670 2,737 2,670 2,737 

Total financial assets 52,952 54,005 52,952 54,005 

(2) Financial liabilities 

Trade and other payables 10,988 11,164 10,988 11,164 

Trust funds and deposits 4,998 4,595 4,998 4,595 

Interest-bearing loans and borrowings 10,000 10,000 10,000 10,000 

Total financial liabilities 25,986 25,759 25,986 25,759 

97





(d) Credit Risk Exposures 

The maximum exposure to credit risk at balance date in relation 

to each class of recognised financial asset is represented by the 

carrying amount of those assets as indicated in the Balance Sheet. 

(e) Risks and mitigation 

The risks associated with our main financial instruments and our 

policies for minimising these risks are detailed below. 

Market risk 

Market risk is the risk that the fair value or future cash flows of our 

financial instruments will fluctuate because of changes in market 

prices. The Council’s exposures to market risk are primarily through 

interest rate risk with only insignificant exposure to other price risks 

and no exposure to foreign currency risk. Components of market risk 

to which we are exposed are discussed below. 

Interest rate risk 

Interest rate risk refers to the risk that the value of a financial 

instrument or cash flows associated with the instrument will fluctuate 

due to changes in market interest rates. Interest rate risk arises 

from interest bearing financial assets and liabilities that we use. Non 

derivative interest bearing assets are predominantly short term liquid 

assets. Our interest rate liability risk arises primarily from long term 

loans and borrowings at fixed rates which exposes us to fair value 

interest rate risk. 

Our loan borrowings are sourced from major Australian banks by a 

tender process. Finance leases are sourced from major Australian 

financial institutions. Overdrafts are arranged with major Australian 

banks. 

We manage interest rate risk on our net debt portfolio by: 

• ensuring access to diverse sources of funding; 

• reducing risks of refinancing by managing in accordance with 

target maturity profiles; and 

• setting prudential limits on interest repayments as a percentage 

of rate revenue. 

We manage the interest rate exposure on our net debt portfolio 

by appropriate budgeting strategies and obtaining approval for 

borrowings from the Australian Loan Council and Department of 

Planning and Community Development each year. 

Investment of surplus funds is made with approved financial 

institutions under the Local Government Act 1989. We manage 

interest rate risk by adopting an investment policy that ensures: 

• conformity with State and Federal regulations and standards; 

• adequate safety; 

• appropriate liquidity; 

• diversification by credit rating, financial institution and investment 

product; 

• monitoring of return on investment; and 

• benchmarking of returns and comparison with budget. 

Maturity will be staggered to provide for interest rate variations and 

to minimise interest rate risk. 

Credit risk 

Credit risk is the risk that a contracting entity will not complete its 

obligations under a financial instrument and cause us to make a 

financial loss. We have exposure to credit risk on all financial assets 

included in our balance sheet. 

To help manage this risk: 

• we have a policy for establishing credit limits for the entities we 

deal with; 

• we may require collateral where appropriate; and 

• we only invest surplus funds with financial institutions which have 

a recognised credit rating specified in our investment policy. 

Trade and other receivables consist of a large number of customers, 

spread across the consumer, business and government sectors. 

Credit risk associated with the Council’s financial assets is minimal 

because the main debtor is the Victorian Government. Apart from 

the Victorian Government we do not have any significant credit risk 

exposure to a single customer or groups of customers. Ongoing 

credit evaluation is performed on the financial condition of our 

customers and, where appropriate, an allowance for doubtful debts 

is raised. 

We may also be subject to credit risk for transactions which are not 

included in the balance sheet, such as when we provide a guarantee 

for another party. Details of our contingent liabilities are disclosed in 

Note 32. 

Movement in Provisions for Doubtful Debts 

Balance at the beginning of the year 55 

New Provisions recognised during the year - 

Amounts already provided for and written off as 

- 

uncollectible 

Amounts provided for but recovered during the year - 

Balance at end of year 55 

Liquidity risk 

2010 

$'000 

Liquidity risk includes the risk that, as a result of our operational 

liquidity requirements: 

• we will not have sufficient funds to settle a transaction on the 

date; 

• we will be forced to sell financial assets at a value which is less 

than what they are worth; or 

• we may be unable to settle or recover a financial assets at all. 

To help reduce these risks we: 

• have a liquidity policy which targets a minimum and average 

level of cash and cash equivalents to be maintained; 

• have readily accessible standby facilities and other funding 

arrangements in place; 

• have a liquidity portfolio structure that requires surplus funds to 

be invested within various bands of liquid instruments; 

• monitor budget to actual performance on a regular basis; and 

• set limits on borrowings relating to the percentage of loans to 

rate revenue and percentage of loan principal repayments to rate 

revenue. 

Council’s exposure to liquidity risk is deemed insignificant based on 

prior periods’ data and current assessment of risk. 

98




(f) Sensitivity disclosure analysis 

Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the 

financial markets, the Council believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced 

from Reserve Bank of Australia): 

- A parallel shift of +1% and -2% in market interest rates (AUD) from year-end rates of 4.5% 

The table below discloses the impact on net operating result and equity for each category of financial instruments held by the Council at yearend, 

if the above movements were to occur. 

Carrying amount subject 

to interest 


Market risk exposure -2% +1% 

200 basis points 100 basis points 

Profit Equity Profit Equity 

2010 $'000 $'000 $'000 $'000 $'000 

Financial assets: 

Cash and cash equivalents 45,902 (918) (918) 459 459 

Other financial assets 3,553 (71) (71) 36 36 

Trade and other receivables 4,362 (87) (87) 44 44 

NOTE 39 EVENTS OCCURING AFTER 

BALANCE DATE 

There have been no matters subsequent to year-end which require 

adjustment to the Financial Report. 

NOTE 40 ROADS EXPENDITURE 


$'000 $'000 

Monash City Council made the following 

expenditure on Roads funded from: 

Local Roads Grant from the Victoria 

Grants Commission 

943 1,167 

Creating Better Places Grant-DPCD 56 224 

Roads to Recovery Funding 553 877 

Council's budget 2,869 1,621 

Vic Track Contribution 250 - 

Total 4,671 3,889 

Financial liabilities: 

Interest-bearing loans and borrowings 10,000 200 200 (100) (100) 

Carrying amount subject 

to interest 


Market risk exposure -1% 2% 

100 basis points 200 basis 

points 

Profit Equity Profit Equity 

2009 $'000 $'000 $'000 $'000 $'000 

Financial assets: 

Cash and cash equivalents 47,421 (474) (474) 948 948 

Other financial assets 3,329 (33) (33) 67 67 

Trade and other receivables 6,473 (65) (65) 129 129 

Financial liabilities: 

Interest-bearing loans and borrowings 10,000 100 100 (200) (200) 

99



NOTE 41 CAPITAL EXPENDITURE 


$'000 

$'000 


Drainage 1,290 2,199 

Reserves 2,227 1,977 

Roads/footpaths/kerb and channel 6,406 5,597 

Retail strips/district centres 431 660 

Other works 1,121 844 

Major Projects 10,613 6,855 

Asset Rationalisation 50 343 

Plant and Equipment 5,952 5,515 

31,278 27,495 

Less projects accounted for as Operating (2,665) (2,381) 

but managed as part of the Capital Program 

Total 28,613 25,114 

Represented by: 

Renewal of Infrastructure 10,775 8,342 

Upgrade of Infrastructure 6,323 9,361 

New/Expansion of Infrastructure 1,265 899 

New/Expansion of Buildings 7,196 2,772 

Other 5,719 6,121 

Sub-total 31,278 27,495 

Less Projects accounted for as Operating 

but managed as part of the Capital Program (2,665) (2,381) 

Total 28,613 25,114 

(a) Renewal 

Expenditure on an existing asset which returns the service potential 

or the life of the asset up to that which it had originally. It is 

periodically required expenditure, relatively large (material) in value 

compared with the value of the components or sub-components of 

the asset being renewed. As it reinstates existing service potential, 

it has no impact on revenue, but may reduce future operating and 

maintenance expenditure if completed at the optimum time. 

(b) Upgrade 

Expenditure which enhances an existing asset to provide a higher 

level of service or expenditure that will increase the life of the asset 

beyond that which it had originally. Upgrade result in additional 

revenue unless direct user charges apply. It will increase operating 

and maintenance expenditure is discretional and often does not 

expenditure in the future because o. the increase in the Council’s 

asset base. 

(c) Expansion 

Expenditure which extends an existing asset, at the same standard 

as is currently enjoyed by residents, to a new group of users. It 

is discretional expenditure which increases future operating and 

maintenance costs, because it increases Council’s asset base, 

but may be associated with additional revenue from the new user 

group. 

Property, plant and equipment, infrastructure movement 

The movement between the previous year and the current year in property, plant and equipment, infrastructure as 

shown in the Balance Sheet links to the net of the following items: 


Total capital expenditure 28,613 25,114 

Asset Rationalisation associated with Asset as held for sale (50) (343) 

Monash Halls Management Committee Asset Acquisitions 62 279 

Net Additions 28,625 25,050 

Contributions - non-monetary assets 872 5,220 

Asset revaluation movement 196,062 16,903 

Transfer from Non-current Asset as held for sale (1,222) (1,450) 

Depreciation & Amortisation (22,900) (22,099) 

Written down value of assets sold (1,033) (1,452) 

Net movement in property, plant and equipment, infrastructure 200,405 22,172 

100



Monash 

Gardens 

Hostel 

(RAC ID :3250) 

NOTE 42 Income Statement for Council’s Aged Residential Care Facilities 

Aged Care Hostels & Nursing Homes 


Gardens 

Nursing 

H o m e 

(RAC ID:4473) 

Elizabeth 

Gardens 

Hostel 

(RAC ID: 3148) 

Elizabeth 

Gardens 

Nursing 

H o m e 

( RAC ID: 

4429) 

Clarinda 

Hostel 

(RAC ID: 

3056) 

Aged Care 

Hostels & 

Nursing 

Homes Total 

Independent Living Units 


Gardens 

ILU's 

Elizabeth 

Gardens 

ILU's 

Independent 

Living Units 

Total 

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

Revenue 

Grants & Subsidies 1,294 2,521 782 1,629 953 7,179 - - - 7,179 

Contributions and Donations 113 16 90 10 45 274 184 20 204 478 

User Charges 791 865 627 496 358 3,137 108 248 356 3,493 

Interest Revenue 708 45 379 50 24 1,206 - - - 1,206 

Other Revenue 15 85 225 1 3 329 83 - 83 412 

Total Revenue 2,921 3,532 2,103 2,186 1,383 12,125 375 268 643 12,768 

Expenses from Ordinary Activities 

Employee Benefits Expense 1,464 2,582 1,186 1,821 1,072 8,125 44 - 44 8,169 

Materials, Services & Contracts 563 767 352 494 326 2,502 125 6 131 2,633 

Utilities 55 50 40 31 37 213 10 3 13 226 

Direct/Indirect Overheads 162 202 123 136 147 770 16 3 19 789 

Depreciation 163 151 161 126 105 706 - - - 706 

Total Expenses 2,407 3,752 1,862 2,608 1,687 12,316 195 12 207 12,523 

Grand 

Total 

Net Result for the Reporting 

Period 514 (220) 241 (422) (304) (191) 180 256 436 245 

Notes 

Residential Aged Care Identification Numbers (RAC ID) 

RAC ID: 3250 - MG Hostel 

RAC ID: 4473 - MG Nursing Home 

RAC ID: 3148 - EG Hostel 

RAC ID: 4429 - EG Nursing Home 

101



NOTE 42 Statement of Financial Position for Council's Aged Residential Care Facilities 

as at 30 June 2010 

Aged Care Hostels & Nursing Homes 

Independent Living Units 


Gardens 

Hostel 

(RAC ID 

:3250) 


Gardens 

Nursing 

H o m e 

(RAC ID:4473) 

Elizabeth 

Gardens 

Hostel 

(RAC ID: 

3148) 

Elizabeth 

Gardens 

N u r s i n g H o m e 

( RAC ID: 

4429) 

Clarinda 

Hostel 

(RAC ID: 

3056) 

Aged Care 

Hostels & 

Nursing 

Homes Total 


Gardens 

ILU's 

Elizabeth 

Gardens 

ILU's 

Independent 

Living Units 

Total 

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

ASSETS 


Receivables 2 1 4 2 - 9 293 408 701 710 

Total Current Assets 2 1 4 2 - 9 293 408 701 710 


Land and Buildings 6,499 5,998 2,534 1,665 2,766 19,462 - - - 19,462 

Plant and Equipment 337 311 377 345 158 1,528 - - - 1,528 

Investments 11,002 2,157 7,957 854 60 22,030 - - - 22,030 

Intangible Assets 3,000 2,115 2,280 1,350 - 8,745 - - - 8,745 

Total Non-Current Assets 20,838 10,581 13,148 4,214 2,984 51,765 - - - 51,765 

TOTAL ASSETS 20,840 10,582 13,152 4,216 2,984 51,774 293 408 701 52,475 

Grand 

Total 

LIABILITIES 


Refundable Deposits 9,710 2,157 7,013 854 60 19,794 - - - 19,794 

Provision - Donations 21 - 5 - 1 27 - - - 27 

Total Current Liabilites 9,731 2,157 7,018 854 61 19,821 - - - 19,821 

TOTAL LIABILITIES 9,731 2,157 7,018 854 61 19,821 - - - 19,821 

NET ASSETS 11,109 8,425 6,134 3,362 2,923 31,953 293 408 701 32,654 


102 

EQUITY 

Accumulated Surplus 514 (220) 241 (422) (304) (191) 180 256 436 245 

Reserves 10,595 8,645 5,893 3,784 3,227 32,144 113 152 265 32,409 

TOTAL EQUITY 11,109 8,425 6,134 3,362 2,923 31,953 293 408 701 32,654 

Notes 

Residential Aged Care Identification Numbers (RAC ID) 

RAC ID: 3250 - MG Hostel 

RAC ID: 4473 - MG Nursing Home 

RAC ID: 3148 - EG Hostel 

RAC ID: 4429 - EG Nursing Home



NOTE 43 FINANCIAL RATIOS 2010 2009 2008 

(a) 

Debt Servicing Ratio 

(to identify the capacity of Council to service its outstanding debt). 

Debt Servicing Costs 701 

727 

638 

= 0.51% 

= 0.55% 

Total Revenue 138,162 133,350 120,511 

= 0.53% 

Enables assessment of Council's capacity to service its outstanding debt. Debt servicing refers to the payment of interest on loan borrowings and bank overdraft interest. The ratio expresses the amount of 

interest paid as a percentage of Council's total revenue. 

(b) 

Debt Commitment Ratio 

(to identify Council’s debt redemption strategy). 

Debt Servicing & Redemption Costs 2,401 

3.36% 2,427 = 3.60% 2,338 = 3.67% 

= 

Rate Revenue 71,490 67,407 63,633 

Enables assessment of Council's strategy in redeeming debt. The strategy involves the net payment of loan principal and interest. The ratio expresses the percentage of rate revenue utilised to pay interest 

and redeem debt principal. 

(c) 

Revenue Ratio 

(to identify Council's dependence on rate income). 

Rate Revenue 71,490 = 51.74% 67,407 = 50.55% 63,633 = 52.80% 

Total Revenue 138,162 133,350 120,511 

Enables assessment of Council's reliance on rate revenue. The level of reliance is determined by comparing the proportion of rate revenue compared to the total revenue of the Council. 

(d) 

Debt Exposure Ratio 

(to identify Council's exposure to debt). 

Total Indebtedness 60,393 

61,791 

57,118 

= 4.01% 

= 4.71% 

Total Realisable Assets 1,505,785 1,310,719 1,300,901 

Enables assessment of Council's solvency and exposure to debt. Total indebtedness refers to the total liabilities of the Council. 

Total liabilities are compared to total realisable assets, which are all Council assets not subject to any restriction and are able to be realised. 

The ratio expresses the amount of Councils indebtedness as a percentage of Council's realisable assets 

= 4.39% 

(e) 

Working Capital Ratio 

(to assess Council's ability to meet current commitments). 

Current Assets 56,428 

57,020 

53,854 

= 110.12% 

= 107.42% 

Current Liabilities 51,244 53,079 48,632 

Enables assessment of Council's ability to meet its current commitments. The ratio expresses the level of current assets the Council has available to meet its current liabilities. 

= 

110.74% 

(f) 

Adjusted Working Capital Ratio 

(to assess Council's ability to meet current commitments). 

Current Assets 56,428 

57,020 

53,854 

= 197.96% 

= 186.72% 

Current Liabilities 28,505 30,538 26,790 

Enables assessment of Council's ability to meet its current commitments. The ratio expresses the level of current assets the Council has available to meet its current liabilities. Current Liabilities have been 

reduced to reflect the long service leave & refundable Aged Care deposit that is shown as a current liability because Council does not have an unconditional right to defer settlement of the liability for at least 

twelve months after the reporting date, but is not likely to fall due within twelve months after the end of the period. 

= 

201.02% 

103

Certification of the Financial Report 


104

Standard Statements 



105

Basis Of Preparation Of The Standard Statements 

FOR THE YEAR ENDED 30 JUNE 2010 

The Monash City Council is required to prepare and include audited Standard 

Statements within its Annual Report. The following four Standard Statements and 

explanatory notes form a special purpose financial report prepared specifically 

to meet the requirements of the Local Government Act 1989 and the Local 

Government (Finance and Reporting) Regulations 2004. 

The Standard Statements have been prepared on an accounting basis consistent 

with those used for the General Purpose Financial Report and the Budget. The 

results reported in these Statements are consistent with those reported in the 

General Purpose Financial Report. The Standard Statements are not a substitute 

for the General Purpose Financial Report. They have not been prepared in 

accordance with all Australian Accounting Standards or other authoritative 

professional pronouncements. 

The Standard Statements compare Council’s Financial Plan, expressed through 

its Annual Budget, with actual performance. The Local Government Act 1989 

requires explanation of any material variances. The Council has adopted a 

materiality threshold of 10 per cent. Explanations have been provided for 

variations below the materiality threshold if considered to be material because of 

their nature. 

The budget figures included in the Standard Statements are those adopted 

by the Council at its meeting on 30 June 2009. The budget was based on 

assumptions that were relevant at the time of adoption of the budget. The Council 

set guidelines and parameters for revenue and expense targets in this budget 

in order to meet the Council’s business plan and financial performance targets 

for both the short and long term. The budget did not reflect expected changes 

to equity resulting from asset revaluations, as their impacts were not considered 

predictable. 

Detailed information on the actual financial results are contained in the General 

Purpose Financial Report. The detailed budget can be obtained by reference to 

Council’s web site. The Standard Statements must be read with reference to those 

documents. 


106

Standard Income Statement 

Revenue from Ordinary Activities 

Note Actual Year Budget Year Variance Variance 


$'000 $'000 $'000 % 

Rates & Charges 71,490 71,417 73 0% 

Charges, Fees & Fines 26,054 24,580 1,474 6% 

Operating Grants, Subsidies & Contributions 24,326 23,607 719 3% 

Capital Grants & Contributions 1 10,786 6,838 3,948 58% 

Interest Revenue 2 2,504 1,611 893 55% 

Other Revenue 1,921 2,024 (103) -5% 

Total Revenue 137,081 130,077 7,004 5% 

Expenses from Ordinary Activities 

Employee Benefits 58,960 58,004 (956) -2% 

Materials, Services & Contracts 49,706 49,503 (203) 0% 

Depreciation & Amortisation 22,900 23,500 600 3% 

Finance Costs 701 735 34 5% 

Operating Capital Expense 3 2,665 1,970 (695) -35% 

Total Expenses 134,932 133,712 (1,220) -1% 

Net gain on disposal of Property, Plant & Equipment 4 525 200 325 163% 

Share of net profit of Investments in Associates 

accounted for using the equity method 31 - 31 0% 

Surplus from Ordinary Operations 2,705 (3,435) 6,140 

Share of net loss on revaluation of associates and joint ventures accounted for by the equity 

(1,148) (1,148) 0% 

method 

Net Asset revaluation increment 194,907 194,907 0% 

Total Changes in Equity 196,464 (3,435) 199,899 

Explanation of material variances between 

Actual Operating Results & Budget 

Revenue 

Note 1 Capital Grants & Contributions 

The majority of this variance predominantly relates to the receipt 

of grants for the Oakleigh Pool which was budgeted in the prior 

year ($1.1M), funds received for the Batesford Reserve Youth 

& Community Hub ($1.8M) and various other unbudgeted 

miscellaneous grants ($1M) . 

Expenditure 

Note 3 Operating Capital Expense 

This relates to expenditure classified as Capital in the budget but 

which does not meet the strict accounting classification of an asset, 

such as Street Trees and Footpath maintenance. Whilst the overall 

capital program was within budget a higher number of projects than 

anticipated did not meet the strict accounting definition of an asset. 

Other 

Note 4 Net gain on disposal of Property, Plant & 

Equipment 

Relates mainly to higher than budgeted proceeds from sale of land 

($.06M) and unbudgeted proceeds from sale of plant & equipment 

($0.3M). 

Note 2 Interest Revenue 

The significant increase in investment interest is due to the recovery of 

term deposit rates which were forecast at 3.5% and averaged 5.9%. 

107

Standard Balance Sheet 

Note Actual Year Budget Year Variance Variance 


ASSETS $'000 $'000 $'000 % 


Cash & Cash Equivalents 5 45,918 36,027 9,891 27% 

Trade & Other Receivables 6 6,908 9,384 (2,476) -26% 

Other Assets 7 3,602 - 3,602 100% 

Total Current Assets 56,428 45,411 11,017 24% 


Property, Plant & Equipment 8 2,050,787 1,833,633 217,154 12% 

Other Assets 9 10,170 14,855 (4,685) -32% 

Total Non-Current Assets 2,060,957 1,848,488 212,469 11% 

TOTAL ASSETS 2,117,385 1,893,899 223,486 12% 

LIABILITIES 


Trade, Other Payables, Refundable Deposits 

48,044 45,845 (2,199) -5% 

& Provisions 

Interest-Bearing Loans & Borrowings 3,200 3,200 - 0% 

Total Current Liabilities 51,244 49,045 (2,199) -4% 


Provisions 10 2,349 1,686 (663) -39% 

Interest-Bearing Loans & Borrowings 6,800 6,800 - 0% 

Total Non-Current Liabilities 9,149 8,486 (663) -8% 

TOTAL LIABILITIES 60,393 57,531 (2,862) -5% 

NET ASSETS 2,056,992 1,836,367 220,624 12% 


Note 5 Cash & Cash Equivalents 

Council maintained cash and investment balances higher than 

anticipated during the year mainly due to delays in the progression 

of a number of capital projects. The budgeted opening balance for 

cash was also much lower than the actual figure on 1 July 2009. 

Note 6 Trade & Other Receivables 

Variance represents a change in accounting treatment for 

Refundable Aged Care deposits not yet paid ($2.2M) which had 

been budgeted as a current asset. 

Note 7 Other Assets 

Represents deferred management fees from Aged Residential 

Care Independent Living Units ($2.3M). This income is difficult 

to accurately estimate. Land held for resale ($0.8M) and prepaid 

expenditure ($0.6M). 


Note 8 Property, Plant & Equipment 

A revaluation of Land ($182M), Buildings ($15M), and Artworks 

($.7M) completed on 30 June, 2010 were not reflected in the 2009- 

10 Budget. The budgeted opening balance was also much lower 

than the actual figure on 1 July 2009 due to asset additions and 

revaluations that occurred after budget finalisation. 

Note 9 Other Assets 

The variance relates to the sale of the Clarinda Aged Care facility 

Bed Licences($2.47M), and a devaluation of Aged Care Bed 

Licences at 30 June 2010 ($1.2M) and Clayton Tip ($1.1M). 


EQUITY 

Accumulated Surplus 910,861 905,635 5,226 1% 

Reserves 11 1,146,131 930,732 215,399 23% 

TOTAL EQUITY 2,056,992 1,836,367 220,625 12% 


Note 10 Provisions 

The increase in Non-Current Liabilities reflects movement in the 

Long Service Leave provision. 

Equity 

Note 11 Reserves 

The revaluation of Land and Buildings have resulted in an increase 

in Equity. 

108

Standard Cash Flow Statement 

Note 

Actual 

Year 

Budget 

Year 

Variance 

Variance 


$'000 $'000 $'000 % 

Cash flows from Operating Activities 

Receipts from Ratepayers 71,336 71,417 (81) 0% 

Charges, Fees and Fines Received 27,806 27,148 658 2% 

Operating Grants, Subsidies and Contributions 23,668 23,607 61 0% 

Capital Grants and Contributions 6,904 6,243 661 11% 

Interest Received 2,208 1,611 597 37% 

Other Receipts 2,370 2,185 185 8% 

GST reimbursed by Australian Tax Office 6,787 7,618 (831) -11% 

GST paid to Australian Tax Office (2,011) (1,721) (290) 17% 

Materials, Services and Contracts Paid (57,874) (56,364) (1,510) 3% 

Payments to Employees (58,440) (58,004) (436) 1% 

Net Cash inflow provided by Operating Activities 12 22,754 23,740 (986) -4% 

Cash Flows from Investing Activities 

Payment for Property, Plant and Equipment (28,864) (33,021) 4,157 -13% 

Proceeds from Sale of Property, Plant and Equipment 4,800 1,573 3,227 205% 

Note 12 Cash Flows from Operating Activities 

This variance relates to unbudgeted capital grant funding ($0.6M), 

higher than forecast investment rates which realised additional 

income ($0.6M), unbudgeted Monash Halls income ($0.26M) and 

payments made for GST and creditor amounts accrued at 30 June 

2009. 

Note 13 Cash Flows from Investing Activities 

Variance relates to an underspend in the Capital Works Program due 

to a deferral of works, and a favourable variance in proceeds from 

Sale of Property, Plant and Equipement which is predominantly due 

to the sale of the Clarinda Aged Care facility. 

Note 14 Cash Flows from Financing Activities 

Receipts of Refundable deposits with respect to Council’s Aged 

Residential Care facilities cannot reliably be forecasted. 

Net Cash Flows from Investing Activities 13 (24,064) (31,448) 7,384 -23% 

Cash Flows from Financing Activities 

Finance Costs (701) (735) 34 -5% 

Trusts and Refundable Deposits 493 - 493 0% 

Receipt from Redraw of Borrowings 1,700 1,700 - 0% 

Repayment of Current Borrowings (1,700) (1,700) - 0% 

Net Cash inflow (outflow) from Financing Activities 14 (208) (735) 527 -72% 

Net increase (decrease) in cash and cash equivalents (1,518) (8,443) 6,925 -82% 

Cash at the beginning of the Financial Year 47,436 44,471 2,965 7% 

Cash and Cash Equivalents at the end of the year 45,918 36,028 9,890 27% 

Reconciliation of Surplus and Net Cash Flows from Operating 

Activities For the Year ending 30 June 2009 

Surplus for the period 2,705 (3,435) 6,140 -179% 

Depreciation and amortisation 22,900 23,500 (600) -3% 

Borrowing Costs 701 735 (34) -5% 

Net (Gain)/Loss on disposal of Property, Plant and Equipment (525) (200) (325) 163% 

Non-Current Assets Written-Off 293 - 293 0% 

Developers Contribution & Donated Assets (872) - (872) 0% 

Net movement in operating assets and liabilities (2,448) 3,140 (5,588) -178% 

Net cash inflow from operating activities 22,754 23,740 (986) -4% 

109

Standard Statement Of Capital Works 

Note Actual Year Budget Year 

2010 2010 Completion 

$'000 $'000 % 

Buildings 15 3,188 4,135 77% 

Drainage 16 1,290 2,338 55% 

Reserves 17 2,227 1,808 123% 

Roads/footpaths/kerb and channel 6,406 6,325 101% 

Retail strips/district centres 18 431 581 74% 

Other works 19 1,121 1,306 86% 

Major Projects 20 10,613 13,038 81% 

Asset Rationalisation 50 50 100% 

Plant and Equipment 5,952 5,841 102% 

Sub-total 31,278 35,422 88% 

Less projects accounted for as Operating 

but managed as part of the Capital Program (2,665) (1,970) 135% 

Total 28,613 33,452 86% 

Note 15 Buildings 

Deferral of works at the Glen Waverley Civic Centre, and delays in commencing Princes Highway 

Pavilion are the main contributors to this variance. 

Note 16 Drainage 

A shortage of suitably qualified contractors led to delays within the Local and Strategic Drainage 

Programs. 

Note 17 Reserves 

Accelerated programs for tree planting in reserves, and Oakleigh Pioneer Park Landscape Conservation 

have contributed to this variance. 

Note 18 Retail Strips/District Centres 

The underspend in Retail Strips represents progress of the works at Eaton Mall, Oakleigh. 

Note 19 Other Works 

Delays in receiving new bus shelters is the major cause of the variance in this category. 

Note 20 Major Projects 

Underspend in this category represents the progress to date of works at Batesford Reserve Youth & 

Community Hub and the Euneva Avenue Carpark, Glen Waverley. 


110

Certification Of The Standard Statements 

111


112



Performance Statement 

113

Performance Statement 


The Victorian Government expects all Councils to collect and publish performance information. The Local Government Act 1989 (Performance Statement - section 132) requires a Council to report on the Key 

Strategic Activities (KSA’s) and performance targets and measures specified in the budget for the financial year and the actual results achieved for the financial year having regard to those performance targets and 

measures. Monash City Council has a vision for a thriving community. The Council Plan lists five Strategic Objectives that have been developed to guide Council in the achievement of this vision. Each of the KSA’s 

listed in the Performance statement contributes to achieving the Strategic Objectives. 

KSA 

Ref. 

No. 

Key Strategic Activity (KSA) 

Performance Measures and Target 

Dates 

Status 

KSA 1 

Implement the 2009/10 New and Base 

Capital Works program. 

Quantity: Ensure 85% completion of the 

program by June 2010. 

85.95% of the Capital Works Program was completed by 30 June 2010. Achieved 

KSA 2 

Undertake the Annual Community 

Satisfaction Measurement Survey to 

assess service delivery performance 

and community satisfaction ratings. 

Quality: Maintain or improve survey results 

across the 13 key service areas. 

Time: Report outcomes to Council by 

December 2009. 

Survey results reported to Council on February 2 2010. Results were generally maintained with 

increase in most service areas. Only slight decrease in Waste Management and Conservation and 

Environment Services however both of these areas remain in their respective very high and high 

categories. 

Achieved 

KSA 3 

Upgrade and enhance the Oakleigh 

basketball stadium. 

Quality: Delivered Standard scope of works. 

Cost: $200,000. 

Time: December 2009. 

Works involving painting the existing stadium and landscape works to the car park were completed 

in October 2009. 

Achieved 

KSA 4 

Refurbish and rehabilitate the MARC 

outdoor pool. 


Cost: $570,000. 


Works delivered as per scope and finalised in late October 2009, with official opening on 20/11/09. 

Achieved 

KSA 5 

Develop community buildings in line 

with budget. Complete construction of 

the multi-purpose community facility at 

Electra Reserve, Ashwood. 


Cost: Within total project cost, $3.659 million. 


Works and building complete at 30/12/09. User groups occupying building from 1/1/10. Total 

project cost $3.407 million 

Achieved 

KSA 6 

Implement the Management structure 

and aquatic programs for the Oakleigh 

Aquatic Centre. 

Quality: Programs. 

Time: Programs prepared prior to opening of 

facility. 

Management structure in place prior to pool opening in December 2009. Aquatic programs 

prepared and implemented including: 

· Family Fun Day 

· VICSWIM 

· Pool bookings 

· Dive pool activities 

Achieved 

KSA 7 

Complete the redevelopment of the 

Oakleigh Aquatic Centre. 


Cost: Within total project cost, $9.99 million. 


Redevelopment completed including agreed variation and partial refurbishment of stadium (toilets 

and recreation room). Total project cost $10.04million. 

Achieved 


KSA 8 

KSA 9 

Commence construction of the upgrade 

of the Princess Highway Reserve 

pavilion. 

Commence construction of the Batesford 

Reserve Youth and Community Hub. 

KSA 10 Complete the review of Council's Rating 

Strategy. 

KSA 11 

Progress the Planning Scheme 

amendment to allow general retail 

activity to be introduced into the 

Holmesglen Neighbourhood Activity 

Centre. 


Cost: Within budget. 

Time: March 2010. 



Time: June 2010. 

Quality: Produce Report for Council. 

Cost: $100,000. 


Quality: Planning Scheme amendment 

prepared for consideration by Council. 


Time: June 2010. 

Construction activities commenced on site on 19/4/10. 

Construction commenced on site in early February 2010. 

Council resolved to adopt CIV as the rating methodology from 2010/2011 rating year at the 

08/12/09 meeting. 

Report on Planning Scheme amendment presented to Council on the 30 March 2010. Amendment 

was abandoned. 

Not 

Achieved 

Achieved 

Achieved 

Achieved 

114

Certification Of The Performance Statement 

115


116

What We Do 

Monash City Council runs a large and diversified business offering over 100 services to the community, some of which include: 

RECREATION SERVICES 

●● 

Sporting facilities 

●● 

Aquatic & leisure centres 

●● 

Sportsgrounds and reserves 

●● 

Community halls 

●● 

Golf courses 

●● 

Bicycle paths and walking trails 

INFORMATION AND ARTS 

●● 

Cultural development and events 

●● 

Community festivals 

●● 

Sir John Monash Community Lecture 

●● 

Monash Library Service 

●● 

Monash Gallery of Art 

PLANNING & BUILDING SERVICES 

●● 

Town planning 

●● 

Statutory planning 

●● 

Social planning 

●● 

Residential development guidelines 

●● 

Urban design & architecture 

ROADS & PARKING SERVICES 

●● 

Traffic management 

●● 

Street signage 

●● 

Traffic engineering 

●● 

Maintenance of local streets 

●● 

Car parks 

ECONOMIC DEVELOPMENT 

●● 

Monash Enterprise Centre 

●● 

Economic Development Forum 

●● 

Business Directory 

●● 

Business events and awards programs 

WASTE MANAGEMENT SERVICES 

●● 

Recycling and disposal 

●● 

Waste collection 

●● 

Mulching and composting 

●● 

Tipping & recycling facilities 

●● 

Street cleaning 

●● 

Graffiti removal 

ENVIRONMENTAL SERVICES 

●● 

Food safety inspections 

●● 

Public health 

●● 

Head lice control 

●● 

Immunisations 

●● 

Tobacco control 

LOCAL LAWS 

●● 

Pet registration 

●● 

Lost animals 

●● 

Local law enforcement 

●● 

Pest control 

●● 

School Crossing Supervisors 

HORTICULTURAL SERVICES 

●● 

Parks and gardens 

●● 

Maintaining sportsgrounds 

●● 

Heritage/conservation services 

●● 

Arboriculture services 

●● 

Bushland management 

FINANCE SERVICES 

●● 

Property, Revenue and Valuations 

●● 

Contract valuers 

COMMUNITY SERVICES 

●● 

Childcare facilities 

●● 

Family Day Care 

●● 

Maternal and Child Health Centres 

●● 

Home & Community Care 

●● 

Aged accommodation 

●● 

Meals on Wheels 

●● 

Seniors programs 

●● 

Children’s holiday programs 

●● 

Youth and family programs 

●● 

Family support 

●● 

Outreach services 

●● 

Inclusion support agency 

●● 

Multicultural services 

●● 

Disabled access 

●● 

Volunteers 

117

Your rates at work 

For every $100 in expenditure* Council delivers the following services: 

Building, Roads, 

Path & Drainage 

Maintenance 

Aged, Disabled & 

Residential Care 

Services 

Garbage, Street 

& Public Facility 

Cleansing 

Parks & Sports 

Grounds 

Maintenance 

$16.36 

$15.77 

$11.47 

$9.46 

Children, Youth & 

Family Services 

Libraries, Arts 

& Culture 

Planning, Building 

Economic & Urban 

Development 

Property, Insurance, 

Fire Protection & 

Interest 

$6.34 

$6.16 

$4.98 

$4.72 

Annual Report 2009-2010 

Recreation 

Services & 

Aquatic Centres 

$8.59 

Health, Local 

Laws & School 

Crossings 

$4.61 

Engineering, 

Transport & 

Infrastructure 

Planning 

$8.56 

Governance & 

Administration 

$2.99 

118 

*Excludes major capital expenditure

119

Financial Report 2009-2010 - City of Monash

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