Brimbank Council Meeting No. 637 - 10 September 2024

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12.3

Financial Statements 2023-2024 And Performance Statement 2023-2024

12.3

Financial Statements 2023-2024 and Performance

Statement 2023-2024

Directorate

Corporate Services

Director

Mark Stoermer

Manager

Andrew Brae

Attachment(s)

1. Draft Financial Statements 2023-2024 [

12.3.1

- 48

pages]

2. Draft Performance Statement 2023-2024 [

12.3.2

- 15

pages]

3. Annual Report 2023-2024 - A Year in Review - Capital

Works Program [

12.3.3

- 5 pages]

Purpose

For Council to consider in principle approval of the Financial Statements 2023/2024 and

Performance Statement 2023/2024, prior to forwarding the statements to the Victorian

Auditor-General.

Officer Recommendation

That Council:

a. Approves, in principle, the Financial Statements 2023/2024 and

Performance Statement 2023/2024 at Attachments 1 and 2 to this

report.

b. Subject to the review of the final version, authorises the:

i. Chief Executive Officer to send the Financial Statements

2023/2024 and Performance Statement 2023/2024 to the

Victorian Auditor-General’s Office.

ii. Councillor _________, Councillor _________, and the Chief

Executive Officer, to certify the final version of the Financial

Statements 2023/2024 and Performance Statement 2023/2024.

iii. Principal Accounting Officer to implement any non-material

changes to the Financial Statements 2023/2024 and Performance

Statement 2023/2024 as recommended by the Victorian Auditor

General’s Office and provide a summary of changes to the Audit

and Risk Committee at its next meeting.

Background

Under the

Local Government Act 2020 (the Act)

, Council is required to prepare an

Annual Report at the conclusion of each financial year. This includes a Report of

Operations, audited Financial Statements and Performance Statement.

Council must submit for auditing, the Financial Statements 2023/2024 (Financial

Statements) and Performance Statement 2023/2024 (Performance Statement) in their

finalised form, to the Auditor appointed by the Victorian Auditor-General’s Office (VAGO),

as soon as practicable after the end of the financial year.

VAGO cannot sign the audit reports unless the Financial Statements and Performance

Statement are in their final form, include any changes recommended or agreed by the

Auditor, and are certified in accordance with the

Local Government (Planning and

Brimbank Council Meeting No. 637 - 10 September 2024

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Reporting) Regulations 2014 (the Regulations)

, by two Councillors authorised by Council,

the Chief Executive Officer and Principal Accounting Officer.

Additionally, the Audit and Risk Committee (ARC) Charter provides that the ARC will

review the draft Financial Statements and Performance Statement to consider whether

they are complete, open and transparent, consistent with information known to the ARC,

and reflect appropriate accounting principles.

At its meeting on 3 September 2024, the ARC considered recommending that Council

approve, in principle, the Financial Statements and Performance Statement, subject to

any further material changes by the Auditor.

Considering Council's unique demographic, policy reforms, and constrained finances, we

face significant external and internal pressures. With rate caps, decreasing grants, and

rising operational costs, we navigate a challenging fiscal landscape. Amid demands for

infrastructure renewal and technological advancements, Brimbank City Council must

prioritise efficiency, provide strategic justifications for initiatives, and maintain a capital

works program aligned with our strategic objectives. Balancing these factors, we strive

for financial sustainability while enhancing community access and services for our

diverse and evolving population.

Matters for Consideration

Analysis

Financial Statements Disclosures

The Financial Statements are a general-purpose financial report that consist of a

Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity,

Statement of Cash Flows, Statement of Capital Works, and accompanying notes.

The Financial Statements have been prepared in accordance with the

Australian

Accounting Standards

, other authoritative pronouncements of the Australian Accounting

Standards Board,

the Act

and

the Regulations

. They have also been prepared in

accordance with the Local Government Model Financial Report.

2023/2024 Operating Results

The Annual Budget 2023/2024 had an operating surplus of $8.034 million. Sustaining an

adjusted underlying surplus is a critical financial strategy that provides capacity to build

new assets and to renew the $2.73 billion of community assets under Council’s control.

The operating result for the financial year ending 30 June 2024 is a surplus of $3.04

million, against a budgeted surplus of $8.034 million, which is an unfavourable variance

of $4.99 million.

The decrease in operating surplus is due to:

Operating Grants – Early receipt of the Victoria Grants Commission funding of $15.55

million for 2023-2024 in 2022-2023.

Depreciation – Unfavourable to budget by $6.80 million due to infrastructure

revaluations in the prior year. Increased costs have driven increased valuation of assets.

Offsetting these decreases were:

User fees - $4.02 million primarily from the Brimbank Aquatic and Wellness Centre and

Keilor Golf Course with better than projected memberships and visitations.

Brimbank Council Meeting No. 637 - 10 September 2024

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Capital Grants - $3.18 million relating to unbudgeted grants relating recreational, leisure

and community facilities projects.

Monetary Contributions - $6.55 million due to several large subdivisions with increased

valuations.

Other income - $2.45 million relating to a combination of higher than budgeted interest

on investments, Workcover Recovery costs and rental leases.

Cash balance for the financial year ended 30 June 2024 was $77.97 million, compared to

budgeted cash balance of $69.85 million. The financial statements also include the effect

on the revaluation of Council’s assets.

Risk Assessment of Financial Sustainability Indicators

Council’s risk assessment for financial sustainability is:

Result

Risk

2023/2024 Result

Net Result

Low

1.19%

Adjusted Underlying Result

High

-1.57%

Liquidity

Low

2.16

Internal Financing

Medium

81.75%

Indebtedness

Medium

40.84%

Capital Replacement

Medium

1.00

Renewal Gap

Medium

0.67

These results will place Council’s overall financial sustainability in the ‘medium’ risk

category. The Financial Statements are at

Attachment 1

Performance Statement Disclosures

The Performance Statement

(Attachment 2)

has been prepared to meet the

requirements of

the Act

and

the Regulations

. Where applicable, the results in the

Performance Statement have been prepared on an accounting basis, consistent with

those reported in the Financial Statements.

Results

The Performance Statement contains the previous year’s results, actual results for

2023/2024 for the 28 prescribed indicators and measures, including 10 for service

performance, 11 for financial performance, and 7 for sustainable capacity. Commentary

has been provided for each of the indicators where the materiality thresholds relevant to

each indicator have been exceeded. In addition to the audited Performance Statement,

the results for a range of other indicators are reported in the Report of Operations as

part of the Annual Report 2023/2024. The financial indicators also include forecast

results for 2024-2027 based on the Strategic Resource Plan.

Implementation

Upon completion of the initial audit, Council is required to consider the audited Financial

Statements and Performance Statement and provide ‘in principle approval’ for the

statements, which are then submitted to VAGO. VAGO’s auditors must then prepare a

report on the submitted Financial Statements and Performance Statement and provide it

to Council within four weeks, as well as provide a copy to the Minister for Local

Government.

Brimbank Council Meeting No. 637 - 10 September 2024

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Capital Works Program 2023/24

Attached as

Attachment 3

is the Annual Report 2023/24 for the capital works program.

The report gives an overview of the program and highlights some of the key projects

completed during the year.

Community Engagement

There is no requirement for public consultation in relation to the draft Financial

Statements and Performance Statement. The ARC has recommended that Council

approve the statements prior to them being submitted to the Auditor, as required under

the

Local Government Act 2020

Resource And Risk Implications

Resource requirements can be met within the Annual Budget 2024/2025.

Regulatory:

legal, legislative or regulatory implications including the rights/obligations

of stakeholders

• Yes - Endorsing the recommendations in this report will ensure Council’s continued

compliance with the legislative requirements.

Legislation/Council Plan/Policy Context

This report supports the Council Plan 2021-2025 strategic direction and objective of:

4. Leadership and Governance - A high performing organisation that enacts the

vision and decisions of Council through the delivery of quality and innovative

services - A fairer place for all

• High Performing and Accountable - Our workforce strive to enhance services and

liveability for the Brimbank community.

This report complies with

Local Government Act 2020, Local Government (Planning and

Reporting) Regulations 2014, Australian Accounting Standards

Council officers contributing to the preparation and approval of this report, have no

conflicts of interests to declare.

BRIMBANK CITY COUNCIL

ANNUAL FINANCIAL REPORT

For the Year Ended 30 June 2024

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

FINANCIAL REPORT

Page

1 2

Financial Statements

4 5 6 7 8

Note 1

Overview

Note 2

Analysis of our results

2.1 Performance against budget

2.1.1 Income and expenditure

2.1.2 Capital works

2.2 Analysis of council results by program

Note 3 Funding for the delivery of our services

3.1 Rates and charges

3.2 Statutory fees and fines

3.3 User fees

3.4 Funding from other levels of government

3.5 Contributions

3.6 Net gain/(loss) on disposal of property, infrastructure, plant and equipment

3.7 Other income

Note 4 The cost of delivering services

4.1 Employee costs

4.2 Materials and services

4.3 Depreciation

4.4 Depreciation - right of use assets

4.5 Allowance for impairment losses

4.6 Borrowing costs

4.7 Finance costs - leases

4.8 Other expenses

Note 5 Investing in and financing our operations

5.1 Financial assets

5.2 Non-financial assets

5.3 Payables, trust funds and deposits and contract and other liabilities

5.4 Interest-bearing liabilities

5.5 Provisions

5.6 Financing arrangements

5.7 Commitments

5.8 Leases

Note 6 Assets we manage

6.1 Property, infrastructure, plant and equipment

Note 7 People and relationships

7.1 Council and key management remuneration

7.2 Related party disclosure

Note 8 Managing uncertainties

8.1 Contingent assets and liabilities

8.2 Change in accounting standards

8.3 Financial instruments

8.4 Fair value measurement

8.5 Events occurring after balance date

Note 9 Other matters

9.1 Reserves

9.2 Reconciliation of cash flows from operating activities to surplus/(deficit)

9.3 Superannuation

Note 10 Change in accounting policy

Table of Contents

Certification of the Financial Statements

Statement of Capital Works

Notes to the Financial Statements

Comprehensive Income Statement

Balance Sheet

Statement of Changes in Equity

Statement of Cash Flows

Victorian Auditor - General's Office Audit Report

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Certification of the Financial Statements

Andrew Brae CA

Principal Accounting Officer

Dated: 10 September 2024

Melbourne

_________________

Councillor

Dated: 10 September 2024

Melbourne

_________________

Councillor

Dated: 10 September 2024

Melbourne

Fiona Blair

Chief Executive Officer

Dated: 10 September 2024

Melbourne

opinion,

the

accompanying

financial

statements

have

been

prepared

accordance

with

the

Local

Government

Act

2020

the

Local

Government

(Planning

and

Reporting)

Regulations

2020,

the

Australian

Accounting Standards and other mandatory professional reporting requirements.

our

opinion,

the

accompanying

financial

statements

present

fairly

the

financial

transactions

the

Brimbank

City

Council

for

the

year

ended

June

2024

and

the

financial

position

the

Council

that

date.

the

date

signing,

are

not

aware

any

circumstances

that

would

render

any

particulars

the

financial statements to be misleading or inaccurate.

have

been

authorised

the

Council

and

the

Local

Government

(Planning

and

Reporting)

Regulations 2020

to certify the financial statements in their final form.

Page 1

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Attachment 12.3.1

Independent Auditor's Report

Page 2

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

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Attachment 12.3.1

Brimbank City Council

Note

2024

2023

$'000 $'000

Income / Revenue

Rates and charges

3.1 181,041 171,823

Statutory fees and fines

3.2 8,744 8,353

User fees

3.3 20,860 15,230

Grant - operating

3.4 12,628 32,263

Grant - capital

3.4 4,360 11,344

Contributions - monetary

3.5 10,987 5,060

Contributions - non-monetary

3.5 3,884 4,532

Net gain on disposal of property, infrastructure, plant and equipment

3.6 334 392

Other income

3.7 12,347 11,097

Total income / revenue

255,185

260,094

Expenses

Employee costs

4.1 107,940 98,188

Materials and services

4.2 79,023 73,111

Depreciation

4.3 55,325 47,321

Depreciation - right of use assets

4.4 1,928 1,773

Allowance for impairment losses

4.5 1,453 1,622

Borrowing costs

4.6 2,384 2,336

Finance costs - leases

4.7 321 291

Other expenses

4.8 3,773 3,761

Total expenses

252,147

228,403

Surplus/(deficit) for the year

3,038

31,691

Other comprehensive income

Net asset revaluation gain/(loss)

6.1

63,499

Total other comprehensive income

63,499

Total comprehensive result

3,038

95,190

The above comprehensive income statement should be read in conjunction with the accompanying notes.

Comprehensive Income Statement for the Year Ended 30 June 2024

Items that will not be reclassified to surplus or deficit in future periods

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Attachment 12.3.1

Brimbank City Council

Note 2024 2023

$'000 $'000

Assets

Current assets

Cash and cash equivalents

5.1 77,965 93,713

Trade and other receivables

5.1 45,483 40,820

Inventories

5.2 83 119

Prepayments

5.2 1,401 808

Other assets

5.2 776 625

Total current assets

125,708

136,085

Non-current assets

Trade and other receivables

5.1 52 70

Right-of-use assets

5.8 5,338 4,575

Property, infrastructure, plant and equipment

6.1 2,733,932 2,730,944

Total non-current assets

2,739,322

2,735,589

Total assets

2,865,030

2,871,674

Liabilities

Current liabilities

Trade and other payables

5.3 16,925 25,366

Trust funds and deposits

5.3 3,068 2,899

Contract and other liabilities

5.3 2,972 4,143

Provisions

5.5 24,411 23,642

Interest-bearing liabilities

5.4 9,097 8,551

Lease liabilities

5.8 1,697 1,415

Total current liabilities

58,170

66,016

Non-current liabilities

Trust funds and deposits

5.3 7,475 7,480

Provisions

5.5 3,165 2,567

Interest-bearing liabilities

5.4 76,617 79,713

Lease liabilities

5.8 3,943 3,276

Total non-current liabilities

91,200

93,036

Total liabilities

149,370

159,052

Net assets

2,715,660

2,712,622

Equity

Accumulated surplus

1,112,661 1,119,533

Reserves

9.1 1,602,999 1,593,089

Total equity

2,715,660

2,712,622

The above balance sheet should be read in conjunction with the accompanying notes.

Balance Sheet as at 30 June 2024

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Attachment 12.3.1

Brimbank City Council

Accumulated Revaluation

Other

Note

Total Surplus Reserve Reserves

$'000

2024

Balance at beginning of the financial year

2,712,622

1,119,533

1,555,555

37,534

Surplus/(deficit) for the year

3,038

Net asset revaluation gain/(loss)

9.1

Transfers to other reserves

9.1

(9,910)

9,910

Balance at end of the financial year

2,715,660

1,112,661

1,555,555

47,444

Accumulated Revaluation

Other

Note

Total Surplus Reserve Reserves

$'000

2023

Balance at beginning of the financial year

2,617,432

1,093,453

1,492,056

31,923

Surplus/(deficit) for the year

31,691

Net asset revaluation gain/(loss)

9.1

63,499

Transfer to other reserves

9.1

(5,611)

5,611

Balance at end of the financial year

2,712,622

1,119,533

1,555,555

37,534

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of Changes in Equity for the Year Ended 30 June 2024

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Attachment 12.3.1

Brimbank City Council

2024 2023

Inflows/ Inflows/

Note (Outflows) (Outflows)

$'000 $'000

Cash flows from operating activities

Rates and charges

176,341 167,347

Statutory fees and fines

6,935 6,923

User fees

21,639 14,825

Grants - operating

12,948 31,998

Grants - capital

3,003 4,380

Contributions - monetary

11,682 6,014

Interest received

5,943 4,681

Trust funds and deposits taken

1,584 1,180

Other receipts

7,040 7,386

Net GST refund/(payment)

6,480 6,203

Employee costs

(106,405) (97,317)

Materials and services

(97,142) (75,083)

Trust funds and deposits repaid

(1,362) (1,163)

Other payments

(3,851) (3,722)

Net cash provided by/(used in) operating activities

9.2

73,652

44,835

Cash flows from investing activities

Payments for property, infrastructure, plant and equipment

6.1 (54,960) (60,241)

Proceeds from sale of property, infrastructure, plant and equipment

1,370 1,063

Net cash provided by/(used in) investing activities

(53,590)

(59,178)

Cash flows from financing activities

Finance costs

(2,379) (2,303)

Proceeds from borrowings

6,000 7,000

Repayment of borrowings

(8,550) (9,784)

Interest paid - lease liability

(322) (291)

Repayment of lease liabilities

(1,742) (1,821)

Net cash provided by/(used in) financing activities

(6,993)

(7,199)

Net increase/(decrease) in cash and cash equivalents

(15,748) 7,275

Cash and cash equivalents at the beginning of the financial year

93,713

86,438

Cash and cash equivalents at the end of the financial year

77,965

93,713

Financing arrangements

5.6

The above statement of cash flows should be read in conjunction with the accompanying notes.

Statement of Cash Flows for the Year Ended 30 June 2024

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Attachment 12.3.1

Brimbank City Council

2023

2024

$'000 $'000

Property

Land

- 1,350

Total land

1,350

Buildings

8,896 10,458

Total buildings

8,896

10,458

Total property

8,896

11,808

Plant and equipment

Plant, machinery and equipment

5,149 2,644

Computers and telecommunications

54 414

Library books

821 832

Artworks

152 105

Total plant and equipment

6,176

3,995

Infrastructure

Roads

22,298 19,516

Footpaths and cycleways

4,489 3,279

Drainage

1,304 1,143

Parks, open space and streetscapes

5,310 9,002

Recreational, leisure and community facilities

6,992 11,498

Total infrastructure

40,393

44,438

Total capital works expenditure

55,465

60,241

Represented by:

New asset expenditure

18,253 26,054

Asset renewal expenditure

26,090 25,882

Asset upgrade expenditure

11,122 8,305

Total capital works expenditure

55,465

60,241

The above statement of capital works should be read in conjunction with the accompanying notes.

Statement of Capital Works for the Year Ended 30 June 2024

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Attachment 12.3.1

Note 1

Overview

Introduction

Statement of compliance

Accounting policy information

1.1

Basis of accounting

Good and Services Tax (GST)

1.2

Impact of Covid-19

The COVID-19 pandemic has no significant impact on council's financial operations.

Brimbank City Council

Notes to the Financial Report for the Year Ended 30 June 2024

The Brimbank City Council was established by an Order of the Governor in Council on 14 December 1994 and is a body

corporate.

The council's main office is located at 301 Hampshire Road, Sunshine, Victoria, 3020.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that

are affected by the revision. Judgements and assumptions made by management in the application of AAS's that have

significant effects on the financial statements and estimates relate to:

- the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 6.1)

- the determination of depreciation for buildings, infrastructure, plant and equipment (refer to Note 6.1)

- the determination of employee provisions (refer to Note 5.5)

- the determination of whether performance obligations are sufficiently specific so as to determine whether an arrangement is

within the scope of

AASB 15 Revenue from Contracts with Customers

AASB 1058 Income of Not-for-Profit Entities

(refer to

Note 3)

- the determination, in accordance with

AASB 16 Leases

, of the lease term, the estimation of the discount rate when not implicit

in the lease and whether an arrangement is in substance short-term or low value (refer to Note 5.8)

- whether or not

AASB 1059 Service Concession Arrangements: Grantors

is applicable

- other areas requiring judgements

These financial statements are a general purpose financial report that consists of a Comprehensive Income Statement, Balance

Sheet, Statement of Changes in Equity, Statement of Cash Flows, Statement of Capital Works and Notes accompanying these

financial statements. The general purpose financial report complies with Australian Accounting Standards (AAS), other

authoritative pronouncements of the Australian Accounting Standards Board, the

Local Government Act 2020

, and the

Local

Government (Planning and Reporting) Regulations

2020.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the

concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is

reported. Specific accounting policies applied are disclosed in sections where the related balance or financial statement matter

is disclosed.

The financial statements have been prepared on a going concern basis. The financial statements are in Australian dollars. The

amounts presented in the financial statements have been rounded to the nearest thousand dollars unless otherwise specified.

Minor discrepancies in tables between totals and the sum of components are due to rounding.

Income and expenses are recognised net of the amount of associated GST. Receivables and payables are stated inclusive of

the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is

included with other receivables or payables in the balance sheet.

The accrual basis of accounting has been used in the preparation of these financial statements, except for the cash flow

information, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate,

regardless of when cash is received or paid.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not

readily apparent from other sources. The estimates and associated judgements are based on professional judgement derived

from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results

may differ from these estimates.

The council is a not-for-profit entity and therefore applies the additional AUS paragraphs applicable to a not-for-profit entity

under the Australian Accounting Standards.

The financial statements are based on the historical cost convention unless a different measurement basis is specifically

disclosed in the notes to the financial statements.

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.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

Note 2

Analysis of our results

2.1

Performance against budget

2.1.1 Income / Revenue and expenditure

Budget

Actuals

Variance

2024

$'000 $'000 $'000

% Ref

Income / Revenue

180,957 181,041 84

9,153 8,744 (409) -4%

16,845 20,860 4,015 24%

25,698 12,628 (13,070) -51%

1,181 4,360 3,179 269%

4,434 10,987 6,553 148%

3,300 3,884 584 18%

513 334 (179) -35%

9,894 12,347 2,453 25%

Total income / revenue

251,975

255,185

3,210

Expenses

107,690 107,940 (250) 0%

78,160 79,023 (863) -1%

48,529 55,325 (6,796) -14%

Depreciation - right of use assets

1,775 1,928 (153) -9%

1,100 1,453 (353) -32%

2,383 2,384 (1) 0%

Finance costs - leases

273 321 (48) -18%

4,029 3,773 256

Total expenses

243,939

252,147

(8,208)

-3%

Surplus/(deficit) for the year

8,036

3,038

(4,998)

-62%

2.1.1 Income / Revenue and expenditure (continued)

(i) Explanations of material variations

Variance

Ref

Item

User fees

The performance against budget notes compare council's financial plan, expressed through its annual budget, with actual

performance. The

Local Government (Planning and Reporting) Regulations 2020

requires explanation of any material variances.

Council has adopted a materiality threshold of the lower of ten percent or $5 million where further explanation is warranted.

Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material

because of its nature.

The 2024 budget figures detailed below are those adopted by council on 20 June 2023. The budget was based on

assumptions that were relevant at the time of adoption of the budget. Council sets guidelines and parameters for income and

expense targets in this budget in order to meet council's planning and financial performance targets for both the short and

long-term. The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were not

considered predictable.

These notes are prepared to meet the requirements of the

Local Government Act 2020

and the

Local Government

(Planning and Reporting) Regulations 2020

Other expenses

Borrowing costs

User fees

Grant - operating

Grant - capital

Allowance for impairment losses

Depreciation

Employee costs

Materials and services

Contributions - non-monetary

Other income

Net gain/(loss) on disposal of property, infrastructure, plant and equipment

Contributions - monetary

User fees were favourable to budget predominately due to Brimbank Aquatic and

Wellness Centre (BAWC) and Keilor Golf Course.

• BAWC revenue was up $3.25 million due to better than expected performance

for memberships, swim school program numbers and casual visitation in the

second year of full operation.

• Keilor Golf Course revenue was up $0.63 million compared to budget due to

better than expected greens fees (rounds of golf) and driving range fees, as well

as better than expected secondary spend with golf carts and food and beverage

sales.

Rates and charges

Statutory fees and fines

Explanation

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2.1.1 Income / Revenue and expenditure (continued)

(i) Explanations of material variations

Variance

Ref

Item

Grant - operating

Grant - capital

Contributions - monetary

Contributions - non-monetary

Net gain/(loss) on disposal of

property, infrastructure, plant

and equipment

Other income

Depreciation

Allowance for impairment

losses

Finance costs - leases

Other income was favourable to budget by $2.45 million due to:

• Higher than budgeted interest on investments $0.94 million;

• Unbudgeted Work Cover recovery costs $0.54 million;

• Higher interest from bank $320k;

• Rental Lease $0.67 million (Western Rail Plan & Sunshine $0.62 million).

Bad and doubtful debts are debts which are determined to be uncollectable. Bad

and doubtful debts ended the year $350k unfavourable against budget primarily

due to an increase in infringement debts and related collectability issues.

Depreciation is unfavourable to budget due to the revaluation infrastructure assets

in the prior year. Higher costs have led to increased asset valuations which has

increased the depreciation.

Finance costs - leases are for the interest component of lease payments. The

interest component included in lease payments compensates the leasing company

for tying up its capital during the lease term. The unfavourable variance is due to

extension leases during the financial year that had not been budgeted for.

Net gain/(loss) on disposal of property, infrastructure, plant and equipment is

$180k unfavourable to the budget. This comprises the total proceeds received

from the disposal of property, infrastructure, plant and equipment less the written

down value (WDV) of property, infrastructure, plant and equipment. The

unfavourable variance is mainly due to higher than budgeted written down value of

items disposed.

Operating grants ended the year at $13.07 million unfavourable to budget.

This is mainly due to the early receipt of the Victoria Grants Commission funding of

$15.55 million in 2022-2023 which was received and recognised earlier than

budgeted for.

In addition to this, unbudgeted grants of $1.27 million carried forward from prior

financial year 2022-2023 (due to unfulfilled obligations) has partly offset a portion

of the variance.

The favourable variance is mainly due to a combination of unbudgeted grants

received and prior year grants being carried over into the current year. The grants

related to recreational, leisure and community facilities projects within the

municipality.

Contributions were higher than budget due to a number of large subdivisions that

occurred during the year, along with an increase in the valuation of land.

An amount of $1.20 million from Australian Renewable Energy Agency (Milestone

2 funding for construction of Brimbank Aquatic and Wellness Centre) was received

that had not been budgeted for.

Non–monetary contributions is favourable to the budget by $0.58 million. This

relates to assets that arise out of new subdivisions within the municipality and are

later vested to council in a future year.

Explanation

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2.1.2 Capital works

Budget Actuals Variance Variance

2024 2024

$'000 $'000 $'000

% Ref

Property

Land improvements

1,222

100%

1,222

Total land

1,222

100%

1,222

Buildings

8,149

8,896

-9%

(747)

Total buildings

8,149

8,896

(747)

-9%

Total property

9,371

8,896

475

Plant and equipment

Plant, machinery and equipment

6,469

5,149

20%

1,320

Computers and telecommunications

- 54

-100%

(54)

Library books

- 821

-100%

(821)

Artworks

- 152

-100%

(152)

Total plant and equipment

6,469

6,176

293

Infrastructure

Roads

28,749 22,298

22%

6,451

Footpaths and cycleways

3,601 4,489

-25%

(888)

Drainage

1,150 1,304

-13%

(154)

Parks, open space and streetscapes

8,786 5,310

40%

3,476

Recreational, leisure and community facilities

14,273

6,992

51%

7,281

Total infrastructure

56,559

40,393

16,166

29%

Total capital works expenditure

72,399

55,465

16,934

23%

Represented by:

New asset expenditure

32,790 18,253 14,537 44%

Asset renewal expenditure

27,543 26,090 1,453

Asset upgrade expenditure

12,066 11,122

944

Total capital works expenditure

72,399

55,465

16,934

23%

(i) Explanations of material variations

Variance

Ref

Item

Land improvements

Plant, machinery and

equipment

Computers and

telecommunications

Library books

Artworks

Roads

Expenditure on roads ended the year $6.45 million less than the budget, mainly

due to reallocation of the $4.72 million actuals to Footpaths and Drains for financial

reporting purposes. A number of road projects still in work in progress and carry

forward to next financial year:

• Devonshire Road, Sunshine $0.67 million;

• Moondani Avenue $0.58 million;

• Denton Avenue, St Albans $376k.

Expenditure on artwork is over budget by $152k mainly due to artwork budget

included under plant, machinery and equipment.

Expenditure on computer and telecommunication is over budget by $54k mainly

due to IT projects budget included under plant, machinery and equipment.

Expenditure on library books is over budget by $0.82 million due to library book

budget included under plant, machinery and equipment.

Explanation

The expenditure variance in plant, machinery and equipment ended the year $1.32

million. Reallocations of the actuals for computers, library books and artworks of

$1.027m have been made. The overall variance for plant and equipment resulted

in a $293k variance.

Expenditure on land improvements ended the year $1.22 million below budget

mainly due to works that will be carried into next year for the below projects:

• Sunshine Energy Park, Albion and Carrington Drive Reserve, Albion $0.67

million;

• Green Gully Reserve Landfill Rehabilitation $450K.

Page 12

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2.1.2 Capital works (continued)

(i) Explanations of material variations

Variance

Ref

Item

Footpaths and cycleways

Drainage

Parks, open space and

streetscapes

Recreational, leisure and

community facilities

Expenditure on parks, open space and streetscapes is under budget by $3.47

million mainly due to the following projects not yet completed and carried forward:

• Sydenham Park, Keilor North - Shared User Trail $1.61 million;

• Local Route Cycle Connection program $369k;

• Rolling sports ground reconstruction program $242k;

• Isabella Williams Memorial Reserve, Deer Park $55k;

• Flagship Park Renewal program $52k.

Expenditure on recreational, leisure and community facilities ended up lower than

the budget by $7.28 million due to reallocation $2.8 million of actuals to Buildings

for Financial Reporting purposes. Projects not yet completed and carried forward:

• Female Sports Facilities Upgrades $1.15 million favourable;

• Bon Thomas Reserve $417k unfavourable.

New Sportsground Development program at Green Gully Reserve $3.35 million

favourable following Council resolution to not proceed.

Expenditure on footpaths is higher than the budget by $0.89 million mainly due to

works performed at:

• Sydenham Rail Corridoor Bicycle Track $488k;

• Taylors Lakes Easement Shared User Path $383k.

Expenditure on drainage is over budget by $154k mainly due to:

• Urban Design Water Sensitive Rectification and Renewal works $129k;

• Bon Thomas Reserve drainage works $14k.

Explanation

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2.2 Analysis of council results by program

2.2.1 CEO & Executive Services

People, Partnerships & Performance

Corporate Services

Infrastructure and City Services

City Futures

Community Wellbeing

2.2.2 Summary of income / revenue, expenses, assets and capital expenses by program

Income /

Revenue

Expenses

Surplus/

(Deficit)

Grants

included

in income /

revenue

Total

assets

2024

$'000

CEO & Executive Services

- 778 (778)

People, Partnerships & Performance

506 18,854 (18,348) 104

Corporate Services

198,631 77,327 121,304 5,044 126,551

Infrastructure and City Services

3,628 76,192 (72,564) 185 2,669,198

City Futures

21,583 26,329 (4,746) 1,289

Community Wellbeing

30,837 52,667 (21,830) 10,366 69,281

255,185 252,147 3,038 16,988 2,865,030

Income /

Revenue

Expenses

Surplus/

(Deficit)

Grants

included

in income /

revenue

Total

assets

2023

$'000

CEO & Executive Services

- 771 (771)

People, Partnerships & Performance

20 9,551 (9,531)

Corporate Services

214,275 74,301 139,974 30,725 137,360

Infrastructure and City Services

4,197 73,925 (69,728) 682 2,728,892

City Futures

16,554 23,021 (6,467) 2,118

Community Wellbeing

25,048 46,834 (21,786) 10,082 5,422

260,094 228,403 31,691 43,607 2,871,674

People, partnerships and performance provides effective governance oversight of the organisation. Service areas

include governance, customer experience, people, culture and wellbeing, strategic advocacy and community

engagement. People and engagement provides support to the organisation and ensures councils focus includes

communication and community engagement processes. People and organisation development provides efficient and

effective services to meet the growing needs of the community where customer experience is dedicated to the health,

safety and amenity of the community. This is underpinned by both customer commitments and customer service

strategies.

Council delivers its functions and activities through the following programs

CEO & Executive Services is responsible for the overarching management of the operations of the council.

Corporate services is responsible for providing a range of strategic and operational services to departments and to the

council as a whole. The division provides efficient, effective and proactive support services across council to enable the

delivery of policy commitments, council vision and mission. The provision of these services includes: finance services,

procurement, digital information and technology, project management and innovation.

Infrastructure and city services is responsible for strategic asset management, planning for, constructing new

infrastructure and maintaining existing infrastructure across a diverse range of assets that underpin the wellbeing of the

community. These assets include capital works, engineering services, environment and waste, parks and gardens,

emergency management and municipal resources. This includes the provision, management and maintenance of fleet,

plant and equipment. The Directorate also performs a strategic role in terms of planning, policy and as a referral body to

ensure public infrastructure is designed, delivered and maintained in a way that enhances safety, functionality, amenity

and wellbeing.

City futures is responsible for protecting, developing and enhancing council's social and physical environment. The broad

objective will be achieved primarily through planning, coordination and delivery of a diverse range of high quality and

cost-efficient community and environmental services which are responsive to the needs of residents and other service

users. The city futures area includes the assessment of economic development, city strategy, city planning, building

services, environmental health and city compliance, environment and urban growth.

Community wellbeing provides high quality community focused programs, service delivery and communication to

residents. Community wellbeing provides services to the community across all the life stages; including children,

preschools, youth, family services, community care, community programs, home care services, libraries, leisure and

recreational services, community facilities, neighbourhood houses and arts & cultural services. It supports local festivals

and events and advocates on behalf of the community for major events, tourism and cultural opportunities.

Page 14

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

Note 3 Funding for the delivery of our services

3.1 Rates and charges

The valuation base used to calculate general rates for 2023/24 was $61.037

billion (2022/23 $58.160 billion).

General rates

136,437 130,829

Supplementary rates and rate adjustments

940 983

Municipal charge

6,576 6,300

Waste management charge

37,088 33,711

Total rates and charges

181,041

171,823

3.2 Statutory fees and fines

Infringements and costs

3,902 3,802

Court recoveries

103 56

Town planning fees

1,327 1,316

Permits

500 565

Land information certificates

133 123

Registration

1,963 1,848

Other

816 643

Total statutory fees and fines

8,744

8,353

3.3 User fees

Aged and health services

517 509

Leisure centre and recreation

18,382 13,008

Statutory planning

402 449

Building services

224 192

Waste management services

Valuation/supplementary

46 35

Non voter infringements

98 17

Land clearance

237 119

Local laws

355 259

Other

595 638

Total user fees

20,860

15,230

User fees by timing of revenue recognition

User fees recognised at a point in time

20,860

15,230

Total user fees

20,860

15,230

Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipal

district. The CIV of a property is its market value of the land and improvements.

Statutory fees and fines (including parking fees and fines) are recognised as income when the service has

been provided, the payment is received, or when the penalty has been applied, whichever first occurs.

User fees are recognised as revenue at a point in time, or over time, when (or as) the performance

obligation is satisfied. Recognition is based on the underlying contractual terms.

The date of the general revaluation of land for rating purposes within the municipal district was 1 January

2023, and the valuation was first applied in the rating year that commenced 1 July 2023.

Annual rates and charges are recognised as income when council issues annual rates notices.

Supplementary rates are recognised when a valuation and reassessment is completed and a

supplementary rates notice issued.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2023

2024

$'000

3.4 Funding from other levels of government

Grants were received in respect of the following :

Summary of grants

Commonwealth funded grants

4,545 26,569

State funded grants

12,443

17,038

Total grants received

16,988

43,607

(a) Operating grants

Recurrent - Commonwealth Government

Financial assistance grants

683 19,365

General home care

267 229

Other

1,266 1,163

Recurrent - State Government

Community health

58 89

School crossing supervisors

753 768

Maternal and child health

2,801 3,080

Aged care

1,550 1,257

Family and children

1,329 1,319

General home care

311 107

Libraries and learning

1,391 1,395

Recreation

645 696

Other

15 27

Total recurrent operating grants

11,069

29,495

Non-recurrent - Commonwealth Government

Other

- 10

Non-recurrent - State Government

Libraries and learning

153 439

Recreation

123 79

Environment

563 1,786

Family and children

496 319

Planning and development

- 87

Other

224 48

Total non-recurrent operating grants

1,559

2,768

Total operating grants

12,628

32,263

(b) Capital grants

Recurrent - Commonwealth Government

Roads to recovery

1,308 958

Total recurrent capital grants

1,308

958

Non-recurrent - Commonwealth Government

Roads

1,021 3,482

Recreational, leisure and community facilities

- 1,232

Other

- 130

Non-recurrent - State Government

Buildings

1,462 26

Parks, open space and streetscapes

113 3,673

Recreational, leisure and community facilities

431 1,817

Other

25 26

Total non-recurrent capital grants

3,052

10,386

Total capital grants

4,360

11,344

Page 16

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2023

2024

$'000

Income recognised under

AASB 1058 Income of Not-for-Profit Entities

General purpose

- -

Specific purpose grants to acquire non-financial assets

- -

Other specific purpose grants

1,137 2,569

Revenue recognised under

AASB 15 Revenue from Contracts with Customers

Specific purpose grants

1,835 1,574

4,143

2,972

(d) Unspent grants received on condition that they be spent in a specific manner

Operating

Balance at start of year

1,574 2,219

Received during the financial year and remained unspent at balance date

1,835 1,574

Received in prior years and spent during the financial year

(1,574) (2,219)

Balance at year end

1,835

1,574

Capital

Balance at start of year

2,569 9,324

Received during the financial year and remained unspent at balance date

1,137 2,569

Received in prior years and spent during the financial year

(2,569) (9,324)

Balance at year end

1,137

2,569

Unspent grants are determined and disclosed on a cash basis.

Before recognising funding from government grants as revenue the council assesses whether there is a contract that

is enforceable and has sufficiently specific performance obligations in accordance with

AASB 15 Revenue from

Contracts with Customers

. When both these conditions are satisfied, the council:

- identifies each performance obligation relating to revenue under the contract/agreement

- determines the transaction price

- recognises a contract liability for its obligations under the agreement

- recognises revenue as it satisfies its performance obligations, at the time or over time when services are rendered.

Where the contract is not enforceable and/or does not have sufficiently specific performance obligations, the council

applies

AASB 1058 Income of Not-for-Profit Entities

Grant revenue with sufficiently specific performance obligations is recognised over time as the performance

obligations specified in the underlying agreement are met. Where performance obligations are not sufficiently specific,

grants are recognised on the earlier of receipt or when an unconditional right to receipt has been established. Grants

relating to capital projects are generally recognised progressively as the capital project is completed. The following

table provides a summary of the accounting framework under which grants are recognised.

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

3.5 Contributions

Monetary

10,987 5,060

Non-monetary

3,884 4,532

Total contributions

9,592

14,871

Land

418

1,852

Infrastructure

3,466

2,680

Total non-monetary contributions

3,884

4,532

3.6 Net gain/(loss) on disposal of property, infrastructure, plant and equipment

Proceeds of sale

1,370

1,063

Written down value of assets disposed

(1,036) (671)

Total net gain/(loss) on disposal of property, infrastructure, plant and equipment

392

334

3.7 Other income

Compensation recovery

535 592

Insurance recovery

- 35

Subdivisional fees

138 282

Asset protection enforcement

43 39

Interest

5,943 4,681

Rent

2,847 2,203

Recovery

967 854

Rebates

165 59

Merchandise

337 321

Other

1,372

2,031

Total other income

12,347

11,097

Interest is recognised as it is earned.

Contributions of non-monetary assets were received in relation to the following asset classes:

Other income is measured at the fair value of the consideration received or receivable and is recognised when council

gains control over the right to receive the income.

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

Monetary and non-monetary contributions are recognised as income at their fair value when council obtains control over

the contributed asset.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000

Note 4 The cost of delivering services

4.1 (a) Employee costs

Wages and salaries

94,380

87,326

Workcover

3,510 1,946

Superannuation contributions

(refer below)

9,863 8,715

Fringe benefits tax

187

201

Total employee costs

107,940

98,188

(b) Superannuation contributions

Council made contributions to the following funds:

Defined benefit fund

Employer contributions to Local Authorities Superannuation Fund (Vision Super)

538

567

538

Accumulation funds

Employer contributions to Local Authorities Superannuation Fund (Vision Super)

4,728 4,373

Employer contributions - other funds

4,597 3,775

8,148

9,325

4.2 Materials and services

Contract payments

36,203 35,112

General maintenance

7,294 6,373

Materials and services

16,049

15,306

Consultants

3,567

2,856

Information technology

4,421

3,147

Insurance

2,606

2,821

Utilities

6,180

6,127

Other

2,488

1,584

Total materials and services

79,023

73,111

4.3 Depreciation

Property

5,875 3,885

Plant and equipment

3,886 3,815

Infrastructure

45,564

39,621

Total depreciation

55,325

47,321

4.4 Depreciation - right of use assets

Vehicles

1,928 1,773

Total depreciation - right of use assets

1,928

1,773

Contributions made exclude amounts accrued at balance date. Refer to Note 9.3 for further information relating to

council's superannuation obligations.

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Refer to Note 5.8 and 6.1 for a more detailed breakdown of depreciation charges and accounting policy.

Refer to Note 5.8 for a more detailed breakdown of depreciation - right of use asset charges.

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000

4.5 Allowance for impairment losses

Parking fine debtors

939

727

Other debtors

514

895

Total allowance for impairment losses

1,453

1,622

Movement in allowance for impairment losses in respect of debtors

Parking infringements

Balance at the beginning of the year

2,985 2,619

New allowances recognised during the year

512

366

Other debtors

Balance at the beginning of the year

1,413 1,179

New allowances recognised during the year

193

238

Amounts already allowed for and written off as uncollectible

(4)

Balance at end of year

5,103

4,398

4.6 Borrowing costs

Interest - borrowings

2,384 2,336

2,336

2,384

4.7 Finance costs - leases

Interest - lease liabilities

321

291

321

4.8 Other expenses

Auditors' remuneration - internal audit

Councillors' allowance

539

501

Bank fees and charges

768

630

Pensioner rebate

381

375

Environmental protection

716

610

Community grants

726

784

Assets written off / impaired

147

Other

492

584

Total other expenses

3,773

3,761

Auditors' remuneration - VAGO - audit of the financial statements, performance

statement and grant acquittals

Total borrowing costs

Total finance costs

An allowance for impairment losses in respect of debtors is recognised based on an expected credit loss model.

This model considers both historic and forward looking information in determining the level of impairment.

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.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

Note 5 Investing in and financing our operations

5.1 Financial assets

(a) Cash and cash equivalents

Cash on hand

Cash at bank

3,189

1,435

Cash at call

15,759

25,259

Term deposits

59,000

67,000

Total cash and cash equivalents

77,965

93,713

(b) Trade and other receivables

Current

Statutory receivables

Rates debtors

32,022

27,539

Special rate assessment

2,329

2,583

Infringement debtors

7,531

6,519

Allowance for expected credit loss - infringements

(3,496)

(2,984)

Net GST receivable

2,197

2,362

Non statutory receivables

Other debtors

6,507

6,215

Allowance for expected credit loss - other debtors

(1,607)

(1,414)

Total current trade and other receivables

45,483

40,820

Non-current

Non statutory receivables

Other debtors

Total non-current trade and other receivables

Total trade and other receivables

45,535

40,890

Current (not yet due)

1,322

1,201

Past due by up to 30 days

257

141

Past due between 31 and 180 days

582

298

Past due between 181 and 365 days

457

571

Past due by more than 1 year

2,334 2,660

Total trade and other receivables

4,952

4,871

(d) Ageing of individually impaired receivables

Current (not yet due)

Past due by up to 30 days

Past due between 31 and 180 days

Past due between 181 and 365 days

25 52

Past due by more than 1 year

1,537 1,329

Total trade and other receivables

1,607

1,414

The ageing of the council's trade and other receivables (excluding statutory receivables) that are not impaired was:

At balance date, other debtors representing financial assets with a nominal value of $1,607,000 (2023: $1,414,000)

were impaired. The amount of the allowance raised against these debtors was $1,607,000 (2023: $1,414,000). They

individually have been impaired as a result of their doubtful collection. Many of the long outstanding past due

amounts have been lodged with council's debt collectors or are on payment arrangements.

The ageing of receivables that have been individually determined as impaired at reporting date was:

Short term receivables are carried at invoice amount. An allowance for expected credit losses is recognised based

on past experience and other objective evidence of expected losses. Long term receivables are carried at amortised

cost using the effective interest rate method.

Cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original

maturities of three months or less, net of outstanding bank overdrafts.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

5.2 Non-financial assets

(a) Inventories

Inventories held for distribution

119

Total inventories

119

(b) Other assets

Prepayments

1,401

808

Accrued income

771

609

Other

Total other assets

2,177

1,433

Inventories held for distribution are measured at cost, adjusted when applicable for any loss of service potential. All

other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Where

inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the

date of acquisition.

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

5.3

Payables, trust funds and deposits and contract and other liabilities

(a) Trade and other payables

Current

Trade payables

13,094 16,604

Accrued expenses

3,831 8,762

Total current trade and other payables

16,925

25,366

(b) Trust funds and deposits

Current

Refundable deposits

1,448 1,308

Fire services levy

1,045 1,099

Other refundable deposits

575 492

Total current trust funds and deposits

3,068

2,899

Non-current

Refundable deposits

7,475 7,480

Total non-current trust funds and deposits

7,475

7,480

Aggregate amount of trust funds and deposits:

Current

3,068 2,899

Non-current

7,475 7,480

Total trust funds and deposits

10,543

10,379

Contract liabilites

Current

Grants received in advance - operating

1,835 1,574

Grants received in advance - capital

1,137 2,569

Total contract liabilities

2,972

4,143

Other liabilities

Current

Deferred capital grants

Total other liabilities

Total contract and other liabilities

2,972

4,143

Purpose and nature of items

Refundable deposits - Deposits are taken by council as a form of surety in a number of circumstances, including

in relation to building works, tender deposits, contract deposits and the use of civic facilities.

Fire Service Levy - Council is the collection agent for fire services levy on behalf of the State Government.

Council remits amounts received on a quarterly basis. Amounts disclosed here will be remitted to the state

government in line with that process.

Retention amounts - Council has a contractual right to retain certain amounts until a contractor has met certain

requirements or a related warrant or defect period has elapsed. Subject to the satisfactory completion of the

contractual obligations, or the elapsing of time, these amounts will be paid to the relevant contractor in line with

council's contractual obligations.

Trust funds and deposits

Amounts received as deposits and retention amounts controlled by council are recognised as trust funds until

they are returned, transferred in accordance with the purpose of the receipt, or forfeited. Trust funds that are

forfeited, resulting in council gaining control of the funds, are to be recognised as income at the time of forfeit.

Contract liabilities

Contract liabilities reflect consideration received in advance from customers in respect of maternal and child

health, family and children, environment and parks, openspace and streetscapes. Contract liabilities are

derecognised and recorded as income when promised goods and services are transferred to the customer.

Refer to Note 3.

Page 23

Brimbank Council Meeting No. 637 - 10 September 2024

29 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

5.4 Interest-bearing liabilities

Current

Other borrowings - secured

7,119 7,103

Treasury Corporation of Victoria borrowings - secured

1,978 1,448

8,551

9,097

Non-current

Other borrowings - secured

57,880 64,998

Treasury Corporation of Victoria borrowings - secured

18,737 14,715

79,713

76,617

Total interest-bearing liabilities

85,714

88,264

Borrowings are secured by a deed of charge over councils rate revenue.

Not later than one year

9,097 8,551

Later than one year and not later than five years

57,494 55,524

Later than five years

19,123 24,189

88,264

85,714

5.5 Provisions

Annual

leave

Sick

leave

(vesting)

Long

service

leave

Total

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

2024

Balance at beginning of the financial year

10,359 331 15,519 26,209

Additional provisions

6,111

7 2,893 9,011

Amounts used

(6,513) (94) (2,133) (8,740)

760

336

1,096

Balance at the end of the financial year

10,717

244

16,615

27,576

Provisions - current

10,717 244 13,450 24,411

Provisions - non-current

- 3,165 3,165

2023

Balance at beginning of the financial year

9,731 329 15,061 25,121

Additional provisions

5,740 12 2,451 8,203

Amounts used

(5,773) (10) (2,366) (8,149)

661

373

1,034

Balance at the end of the financial year

10,359

331

15,519

26,209

Provisions - current

10,359 331 12,952 23,642

Provisions - non-current

- 2,567 2,567

Change in the discounted amount arising because of time

and the effect of any change in the discount rate

(a) The maturity profile for council's borrowings is:

Borrowings are initially measured at fair value, being the cost of the interest-bearing liabilities, net of transaction

costs. The measurement basis subsequent to initial recognition depends on whether the council has categorised

its interest-bearing liabilities as either financial liabilities designated at fair value through the profit and loss, or

financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption

value is recognised in net result over the period of the borrowing using the effective interest method.

The classification depends on the nature and purpose of the interest-bearing liabilities. The council determines

the classification of its interest-bearing liabilities based on contractual repayment terms at every balance date.

Change in the discounted amount arising because of time

and the effect of any change in the discount rate

Page 24

Brimbank Council Meeting No. 637 - 10 September 2024

30 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

5.5 Provisions (continued)

2024 2023

$'000 $'000

(a) Employee provisions

Current provisions expected to be wholly settled within 12 months

Annual leave

7,014 6,709

Sick leave

244 331

Long service leave

574 526

7,566

7,832

Current provisions expected to be wholly settled after 12 months

Annual leave

3,703 3,650

Long service leave

12,876 12,426

16,076

16,579

Total current employee provisions

24,411

23,642

Non-current

Long service leave

3,165 2,567

Total non-current employee provisions

3,165

2,567

Aggregate carrying amount of employee provisions:

Current

24,411 23,642

Non-current

3,165 2,567

Total aggregate carrying amount of employee provisions

27,576

26,209

2024 2023

- discount rate

4.217% 4.057%

- index rate

4.450% 4.350%

Key assumptions:

Annual leave

Long service leave

A liability for annual leave is recognised in the provision for employee benefits as a current liability because the

council does not have an unconditional right to defer settlement of the liability. Liabilities for annual leave are

measured at:

- nominal value if the council expects to wholly settle the liability within 12 months

- present value if the council does not expect to wholly settle within 12 months.

Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in the

provision for employee benefits as current liabilities, measured at the present value of the amounts expected to

be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Liability for long service leave (LSL) is recognised in the provision for employee benefits. Unconditional LSL is

disclosed as a current liability as the council does not have an unconditional right to defer settlement.

Unconditional LSL is measured at nominal value if expected to be settled within 12 months or at present value if

not expected to be settled within 12 months. Conditional LSL that has been accrued, where an employee is yet

to reach a qualifying term of employment, is disclosed as a non-current liability and measured at present value.

The calculation of employee costs and benefits includes all relevant on-costs and are calculated as follows at

reporting date:

Page 25

Brimbank Council Meeting No. 637 - 10 September 2024

31 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000 $'000

5.6 Financing arrangements

The council has the following funding arrangements in place as at 30 June 2024:

Credit card facilities

500 500

Total facilities

500

Used facilities

(172) (159)

Unused facilities

328

341

5.7 Commitments

Commitments for expenditure

Not later

than

1 year

Later than

1 year and not

later than

2 years

Later than

2 years and not

later than

5 years Later than 5 years

Total

2024

$'000

$'000 $'000

Operating

Information systems and technology

2,009

93 2,212 4,314

Environmental services

502 210

192 302 1,206

Internal audit services

- 74

Community health

2,794

- 2,794

Security services

454

- 492

Leisure services

162 266 221

- 649

Cleaning council facilities and built assets 1,400 189

- 1,589

Insurance

3,753

- 3,753

Lease

430

- 430

Plant and equipment

1,973

107

- 2,170

Consultancy

241 187

108

- 536

Total

13,762

1,010

721

2,514

18,007

Capital

Roads

1,656 302

- 2,033

Drainage

415

- 415

Open space

946

- 1,000

Buildings

7,240 550

166

- 7,956

Total

10,257

883

264

11,404

Not later

than

1 year

Later than

1 year and not

later than

2 years

Later than

2 years and not

later than

5 years Later than 5 years

Total

2023

$'000

$'000 $'000

Operating

Information systems and technology

3,313 1,549 1,048 4,000 9,910

Meals for delivery

1,316 439

- 1,755

Environmental services

515

89 307 941

Organic refuse collection

386 386 289

- 1,061

Hard waste collection

442

- 442

Internal audit services

- 95

Community health

2,349 2,349

- 4,698

Security services

148

- 204

Leisure services

342 143

81 32 598

Cleaning council facilities and built assets 1,607 733

- 2,340

Insurance

- 14

Lease

3,613 3,613 4,902 1,750 13,878

Plant and equipment

493

- 675

Total

14,633

9,389

6,500

6,089

36,611

Capital

Roads

7,761

- 7,761

Drainage

213

- 213

Open space

4,554 2,243 2,790

- 9,587

Buildings

1,225 202 321

- 1,748

Total

13,753

2,445

3,111

19,309

The Council has entered into the following commitments. Commitments are not recognised in the Balance Sheet.

Commitments are disclosed at their nominal value and presented inclusive of GST payable.

Page 26

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

5.8 Leases

At inception of a contract, council assesses whether a contract is, or contains, a lease. A contract is, or contains, a

lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for

consideration. To identify whether a contract conveys the right to control the use of an identified asset, it is necessary to

assess whether:

- The contract involves the use of an identified asset;

- Council has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of

use; and

- Council has the right to direct the use of the asset.

This policy is applied to contracts entered into, or changed, on or after 1 July 2019.

As a lessee, council recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of

use asset is initially measured at cost which comprises the initial amount of the lease liability adjusted for:

· any lease payments made at or before the commencement date less any lease incentives received; plus

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the

earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of

right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of

use asset is periodically reduced by impairment losses, if any, and adjusted for certain measurements of the lease

liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the

commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily

determined, an appropriate incremental borrowing rate. Generally, council uses an appropriate incremental borrowing

rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

· any initial direct costs incurred; and

· an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on

which it is located.

· Fixed payments;

· Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the

commencement date;

· Amounts expected to be payable under a residual value guarantee; and

· The exercise price under a purchase option that council is reasonably certain to exercise, lease payments in an

optional renewal period if Council is reasonably certain to exercise an extension option, and penalties for early

termination of a lease unless Council is reasonably certain not to terminate early.

Under AASB 16 Leases, Council as a not-for-profit entity has elected not to measure right-of-use assets at initial

recognition at fair value in respect of leases that have significantly below-market terms.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the

right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to

zero.

Page 27

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

5.8 Leases (continued)

Plant &

Equipment

Vehicles

Total

$'000

$'000 $'000

Right-of-use assets

Balance at 1 July 2023

169 4,406 4,575

Additions

610 2,081 2,691

Depreciation charge

(189) (1,739) (1,928)

Balance at 30 June 2024

590

4,748

5,338

2024 2023

$'000 $'000

Lease liabilities

Maturity analysis - contractual undiscounted cash flows:

Less than one year

- 167

One to five years

5,116 4,614

More than five years

524 76

Total undiscounted lease liabilities as at 30 June:

5,640

4,857

Lease liabilities included in the balance sheet at 30 June:

Current

1,697 1,415

Non-current

3,943 3,276

Total lease liabilities

5,640

4,691

Short-term and low value leases

2024 2023

$'000 $'000

Expenses relating to:

Short-term leases

43 38

Total

Non-cancellable lease commitments - short-term and low-value leases

Payable:

Within one year

43 38

Total lease commitments

Council has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that

have a lease term of 12 months or less and leases of low-value assets (individual assets worth less than existing

capitalisation thresholds for a like asset up to a maximum of AUD$10,000), including IT equipment. Council recognises

the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Commitments for minimum lease payments for short-term and low-value leases are payable

as follows:

Page 28

Brimbank Council Meeting No. 637 - 10 September 2024

34 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1 Property, infrastructure, plant and equipment

Carrying

amount

Additions

Contributions

Revaluation

Depreciation

Disposal

Impairment

Transfers

Carrying

amount

30 June 2023

30 June 2024

$'000

Summary of property, infrastructure, plant and equipment

Property

1,036,205

8,799

418

(5,875)

480

1,040,027

Plant and equipment

21,913

6,176

(3,886)

(1,036)

23,167

Infrastructure

1,669,155

34,811

3,466

(45,564)

3,191

1,665,059

Work in progress

3,671

5,679

(3,671)

5,679

55,465

2,730,944

3,884

(55,325)

(1,036)

2,733,932

Opening WIP Additions Write-offs Transfers Closing WIP

$'000

Summary of Work in Progress

Property

480

(480)

Plant and equipment

Infrastructure

3,191

5,582

(3,191)

5,582

Total

3,671

5,679

(3,671)

5,679

Page 29

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1 Property, infrastructure, plant and equipment (continued)

(a) Property

Land - Land - non

Total

Buildings - Leasehold

Heritage

Total

Work in

Total

specialised specialised

land

specialised improvements buildings

buildings

progress

property

$'000

At fair value 1 July 2023

8,247

754,743

762,990

4,678

302,977

315

307,970

480

1,071,440

Accumulated depreciation at 1 July 2023

(762)

(33,949)

(44)

(34,755)

754,743

8,247

762,990

269,028

3,916

271

273,215

480

1,036,685

Movements in fair value

Additions

8,799

8,896

Contributions

418

Revaluation

Disposal

Write-off

Transfers

480

(480)

Impairment losses recognised in operating result

418

9,279

(383)

9,314

Movements in accumulated depreciation

Depreciation and amortisation

(5,802)

(65)

(8)

(5,875)

Accumulated depreciation of disposals

Impairment losses recognised in operating result

Transfers

(5,802)

(65)

(8)

(5,875)

At fair value 30 June 2024

8,665

754,743

763,408

4,678

312,256

315

317,249

1,080,754

Accumulated depreciation at 30 June 2024

(39,751)

(827)

(52)

(40,630)

Carrying amount

8,665

754,743

763,408

272,505

3,851

263

276,619

1,040,124

Page 30

Brimbank Council Meeting No. 637 - 10 September 2024

36 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1 Property, infrastructure, plant and equipment (continued)

(b) Plant and equipment

Plant, Computers

Fixtures,

Total

machinery and

and fittings and

Library

Work in

plant and

equipment telecoms

furniture

books Artworks progress

equipment

$'000

At fair value 1 July 2023

44,441

5,931

3,832

13,788

1,369

69,361

Accumulated depreciation at 1 July 2023

(29,701) (4,606) (2,663) (10,478)

(47,448)

1,325

14,740

1,169

3,310

1,369

21,913

Movements in fair value

Additions

5,149

821

152

6,176

Contributions

Revaluation

Disposal

(3,071)

(1,435)

(465)

(3,263)

(8,234)

Write-off

Transfers

Impairment losses recognised in operating result

(1,435)

2,078

(411)

(2,442)

152

(2,058)

Movements in accumulated depreciation

Depreciation and amortisation

(2,343)

(451)

(271)

(821)

(3,886)

Accumulated depreciation of disposals

2,035

1,435

465

3,263

7,198

Impairment losses recognised in operating result

Transfers

984

(308)

194

2,442

3,312

At fair value 30 June 2024

46,519

4,496

3,421

11,346

1,521

67,303

Accumulated depreciation at 30 June 2024

(30,009)

(3,622)

(2,469)

(8,036)

(44,136)

Carrying amount

16,510

874

952

3,310

1,521

23,167

Page 31

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1 Property, infrastructure, plant and equipment (continued)

Footpath

Recreational, Parks, open

and

leisure and space and

Work in

Total

Roads

Bridges cycleways Drainage community streetscapes progress

infrastructure

$'000

At fair value 1 July 2023

1,234,631

14,798

186,302

363,255

92,382

93,541

3,191

1,988,100

Accumulated depreciation at 1 July 2023

(174,977)

(3,441)

(35,006)

(48,621)

(28,666)

(25,043)

(315,754)

11,357

1,059,654

151,296

314,634

63,716

68,498

3,191

1,672,346

Movements in fair value

Additions

22,298

138

4,489

1,304

4,201

2,381

5,582

40,393

Contributions

1,904

216

1,343

3,466

Revaluation

Disposal

Write-off

Transfers

2,474

230

184

142

139

(3,191)

Impairment losses recognised in operating result

160

26,676

4,935

2,831

4,343

2,523

2,391

43,859

Movements in accumulated depreciation

Depreciation and amortisation

(25,229)

(159)

(4,959)

(6,859)

(3,706)

(4,652)

(45,564)

Accumulated depreciation of disposals

Impairment losses recognised in operating result

Transfers

(159)

(25,229)

(4,959)

(6,859)

(3,706)

(4,652)

(45,564)

At fair value 30 June 2024

1,261,307

14,958

191,237

366,086

96,725

96,064

5,582

2,031,959

Accumulated depreciation at 30 June 2024

(200,206)

(3,600)

(39,965)

(55,480)

(32,372)

(29,695)

(361,318)

Carrying amount

1,061,101

11,358

151,272

310,606

64,353

66,369

5,582

1,670,641

Page 32

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1

Property, infrastructure, plant and equipment (continued)

Acquisition

Asset recognition thresholds and depreciation periods:

Depreciation

Period

Threshold

Limit

$'000

Property

Land

land

Buildings

buildings

10-200 years

leasehold assets

70-95 years

heritage assets

20-100 years

Plant and Equipment

plant and equipment

2-12 years

registered vehicles

3-12 years

office equipment

5-10 years

IT equipment

4 years

furniture and fittings

15 years

library

8 years

artworks

Infrastructure

Bridges and culverts

50-100 years

Roads

road substructure

85 years

road surface

30 years

kerb and channel

50 years

Drains

80 years

Footpaths and cycleways

12-50 years

Car parks (asphaltic concrete)

30 years

Car parks (pavement)

85 years

Sports facilities

(excl. buildings)

15-60 years

Dams

50 years

Traffic management assets

10-50 years

Road reserve assets

20-50 years

Fences

20-50 years

Paths

12-50 years

Playgrounds

20 years

Irrigation systems

30 years

Other structures

10-50 years

Land under Roads

Depreciation and amortisation

Council does not recognise land under roads acquired prior to 1 July 2008.

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 price that

would be received to sell an asset (or paid to transfer a liability) in an orderly transaction between market participants at

the measurement date. Refer also to Note 8.4 for further disclosure regarding fair value measurement.

In accordance with council's policy, the threshold limits have applied when recognising assets within an applicable asset

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

Council recognises land under roads it controls at cost acquired on or after 1 July 2008.

Buildings, plant and equipment, infrastructure, and other assets having limited useful lives are systematically depreciated

over their useful lives to the council in a manner which reflects consumption of the service potential embodied in those

assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes

reassessed annually. Depreciation rates and methods are reviewed annually.

Where assets have separate identifiable components that are subject to regular replacement, these components are

assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component.

Where assets are constructed by council, cost includes all materials used in construction, direct labour, borrowing costs

incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.

Page 33

Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1

Property, infrastructure, plant and equipment (continued)

Repairs and maintenance

Valuation of land and buildings

Level 1

Level 2 Level 3 Date of

Type of

$'000

$'000 Valuation

Valuation

Land

754,743

06/2023

full

Specialised land

8,665

06/2016

full

Buildings

272,768

06/2023

full

Total

754,743

281,433

Valuation of infrastructure

Road earthworks are not depreciated on the basis that they are assessed as not having a limited useful life.

Artworks are not depreciated.

Depreciation periods used are listed above and are consistent with the prior year unless otherwise stated.

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 asset is expensed.

Straight line depreciation is charged based on the residual useful life as determined each year.

Specialised land is valued at fair value 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.

This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income

statement.

Valuation of land and buildings were undertaken by a qualified independent Certified Practising Valuer - Opteon Solutions

(API No: 63379). The valuation of land and buildings is at fair value, being market value based on highest and best use

permitted by relevant land planning provisions. Where land use is restricted through existing planning provisions the

valuation is reduced to reflect this limitation. This adjustment is an unobservable input in the valuation. The adjustment

has no impact on the comprehensive income statement.

Valuation of infrastructure assets has been determined in accordance with an independent valuation undertaken by

qualified council engineers (Tommy Yeung, Bachelor of Civil Engineering) based on independent condition audits.

The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation.

Details of the council's land and buildings and information about the fair value hierarchy as at 30 June 2024 are as

follows:

The date and type of the current valuation is detailed in the following table. A full revaluation of these assets will be

conducted in 2025/26.

The date and type of the current valuation is detailed in the following table. An index based revaluation was conducted in

the prior year, this valuation was based on Rawlinsons Australian Construction handbook 2023 and internal source data,

a full revaluation of these assets will be conducted in 2024/25.

Page 34

Brimbank Council Meeting No. 637 - 10 September 2024

40 of 72

Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

6.1

Property, infrastructure, plant and equipment (continued)

Level 1

Level 2 Level 3 Date of

Type of

$'000

$'000 Valuation

Valuation

Roads

1,061,101

06/2023

index

Bridges

11,358

06/2023

index

Footpath and cycleways

151,272

06/2023

index

Drainage

310,606

06/2023

index

Recreational, leisure and community

64,353

06/2023

index

Parks, open space and streetscapes

66,369

06/2023

index

Total

1,665,059

Description of significant unobservable inputs into level 3 valuations

2024

2023

$'000

Reconciliation of specialised land:

Land under roads

8,665

8,247

Total specialised land

8,665

8,247

Details of the council's infrastructure and information about the fair value hierarchy as at 30 June 2024 are as follows:

Specialised buildings

are valued using a depreciated replacement cost technique. Significant unobservable inputs

include the current replacement cost and remaining useful lives of buildings. Current replacement costs is calculated on a

square metre basis and ranges from $1,200 to $2,250 per square metre. The remaining useful lives of buildings are

determined on the basis of the current condition of buildings and vary from 2 year to 94 years. Replacement cost is

sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful

lives of buildings are sensitive to changes in expectations or requirements that could either shorten or extend the useful

lives of buildings.

Infrastructure assets

are valued based on the depreciated replacement cost. Significant unobservable inputs include

the current replacement cost and remaining useful lives of infrastructure. The remaining useful lives of infrastructure

assets are determined on the basis of the current condition of the asset and vary from 2 year to 92 years. Replacement

cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation.

Useful lives of infrastructure are sensitive to changes in use, expectations or requirements that could either shorten or

extend the useful lives of infrastructure assets.

Page 35

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

Note 7 People and relationships

7.1 Council and key management remuneration

(b) Key Management Personnel

Councillors

Councillor Ranka Rasic (Deputy Mayor from 17/11/22 to 16/11/23, Mayor from 17/11/23)

Councillor Jae Papalia (Deputy Mayor from 17/11/23)

Councillor Victoria Borg

Councillor Sarah Branton

Councillor Thuy Dang

Councillor Sam David

Councillor Maria Kerr

Councillor Bruce Lancashire (Mayor from 17/11/22 to 16/11/23)

Councillor Thomas O'Reilly

Councillor Virginia Tachos

Chief Executive Officer and other KMP

Chief Executive Officer

Director Advocacy Partnerships & Community Engagement

Director City Futures

Director Community Wellbeing

Director Corporate Services

Director Infrastructure and City Services

2024 2023

No.

Total number of Councillors

Total Chief Executive Officer and other Key Management Personnel

Total number of Key Management Personnel

2023

2024

$'000

Total remuneration of Key Management Personnel was as follows:

Short-term employee benefits

1,904

2,223

Other long-term employee benefits

Post-employment benefits

185

238

Termination benefits

Total

2,600

2,130

Councillor Jasmine Nguyen

(a) Related parties

Parent entity

Brimbank City Council is the parent entity.

Subsidiaries and Associates

No interests in subsidiaries and associates.

Key Management Personnel (KMP) are those people with the authority and responsibility for planning, directing and controlling the

activities of Brimbank City Council. The Councillors, Chief Executive Officer and Directors are deemed KMP.

Details of KMP at any time during the year are:

Remuneration comprises employee benefits including all forms of consideration paid, payable or provided by council, or on behalf of

the council, in exchange for services rendered. Remuneration of Key Management Personnel and Other senior staff is disclosed in

the following categories.

Short-term employee benefits

include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable

on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

Other long-term employee benefits

include long service leave, other long service benefits or deferred compensation.

Post-employment benefits

include pensions, and other retirement benefits paid or payable on a discrete basis when employment

has ceased.

Termination benefits

include termination of employment payments, such as severance packages.

Page 36

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

7.1 Council and key management remuneration (continued)

2024 2023

No.

$10,000 - $19,999

$30,000 - $39,999

$40,000 - $49,999

$50,000 - $59,999

$60,000 - $69,999

$70,000 - $79,999

$80,000 - $89,999

$100,000 - $109,999

$140,000 - $149,999

$270,000 - $279,999

$280,000 - $289,999

$290,000 - $299,999

$310,000 - $319,999

$330,000 - $339,999

$410,000 - $419,999

(d) Remuneration of other senior staff

2023

2024

$'000

Total remuneration of other senior staff was as follows:

Short-term employee benefits

3,531

3,898

Other long-term employee benefits

115

Post-employment benefits

387

429

Termination benefits

173

205

Total

4,647

4,182

The number of other senior staff are shown below in their relevant income bands:

2024 2023

No.

<$169,999

2024 2023

$'000

Total remuneration for the reporting year for other senior staff included above, amounted to:

4,647

4,182

Income Range:

$190,000 - $199,999

$170,000 - $179,999

$180,000 - $189,999

$220,000 - $229,999

The numbers of Key Management Personnel whose total remuneration from Council and any related entities, fall within the following

bands:

$240,000 - $249,999

Other senior staff are officers of Council, other than Key Management Personnel, whose total remuneration exceeds $170,000 and

who report directly to a member of the KMP. *

$230,000 - $239,999

$210,000 - $219,999

$200,000 - $209,999

$260,000 - $269,999

$220,000 - $229,999

$230,000 - $239,999

$240,000 - $249,999

Page 37

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

7.2 Related party disclosure

(a) Transactions with related parties

Director People Partnerships & Performance - $50,810 (2023: $102,899)

(b) Outstanding balances with related parties

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

Nil (2023: Nil)

(d) Commitments to/from related parties

Nil (2023: Nil)

The aggregate amount of loans in existence at balance date that have been made, guaranteed or secured by the council to a related

party are as follows:

The aggregate amount of commitments in existence at balance date that have been made, guaranteed or secured by the council to a

related party are as follows:

During the period council entered into the following transactions with related parties:

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

Note 8 Managing uncertainties

8.1 Contingent assets and liabilities

(a) Contingent assets

(b) Contingent liabilities

Superannuation

Legal matters

Liability Mutual Insurance

8.2 Change in accounting standards

Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the occurrence

or non-occurrence of one or more uncertain future events not wholly within the control of the Council.

Council is a participant of the MAV Liability Mutual Insurance (LMI) Scheme. The LMI scheme provides public liability and

professional indemnity insurance cover. The LMI scheme states that each participant will remain liable to make further

contributions to the scheme in respect of any insurance year in which it was a participant to the extent of its participant’s

share of any shortfall in the provision set aside in respect of that insurance year, and such liability will continue whether or not

the participant remains a participant in future insurance years.

At balance date the council are not aware of any contingent assets.

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed and if quantifiable, are

measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable,

respectively.

Contingent liabilities are:

- possible obligations that arise from past events, whose existence will be confirmed only by the occurrence or non

occurrence of one or more uncertain future events not wholly within the control of the council; or

- present obligations that arise from past events but are not recognised because:

- it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

- the amount of the obligation cannot be measured with sufficient reliability.

Certain new Australian Accounting Standards and interpretations have been published that are not mandatory for the 30 June

2024 reporting period. Council assesses the impact of these new standards.

In December 2022 the Australian Accounting Standards Board (AASB) issued AASB 2022-10 Amendments to Australian

Accounting Standards - Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities to modify

AASB 13 Fair Value Measurement. AASB 2022-10 amends AASB 13 Fair Value Measurement for fair value measurements

of non-financial assets of not-for-profit public sector entities not held primarily for their ability to generate net cash inflows.

The AASB 13 modifications:

- are applicable only to not-for-profit public sector entities;

- are limited to fair value measurements of non-financial assets not held primarily for their ability to generate net cash inflows;

- are to be applied prospectively for annual periods beginning on or after 1 January 2024;

- would not necessarily change practice for some not-for-profit public sector entities; and

-do not indicate that entities changing practice in how they measure relevant assets made an error in applying the existing

requirements of AASB 13.

Council will assess any impact of the modifications to AASB 13 ahead of the 2024-25 reporting period.

In December 2022 the Australian Accounting Standards Board (AASB) issued AASB 2022-6 Amendments to Australian

Accounting Standards - Non-current Liabilities with Covenants. AASB 2022-6 amends AASB 101 Presentation of Financial

Statements to improve the information an entity provides in its financial statements about long

‑

term liabilities with covenants

where the entity’s right to defer settlement of those liabilities for at least twelve months after the reporting period is subject to

the entity complying with conditions specified in the loan arrangement. The amendments in AASB 2022-6 are effective for

annual periods beginning on or after 1 January 2024. Council will assess any impact of the modifications to AASB 101 ahead

of the 2024-25 reporting period.

Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional

contributions to the scheme, matters relating to this potential obligation are outlined in Note 9.3. As a result of the volatility in

financial markets the likelihood of making such contributions in future periods exists.

The council is presently involved in one significant legal matter regarding the closed Sunshine Landfill and private land

surrounding it. The council will continue to follow the recommended legal strategy in consultation with its insurer. The financial

outcome is unable to be reliably estimated and no allowance for this contingency has been made in the financial report. This

is not expected to occur within the next 12 months.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

8.3 Financial instruments

• • •

• • • • •

(e) Sensitivity disclosure analysis

•

(b) Market risk

benchmarking of returns and comparison with budget.

There has been no significant changes in the council's exposure, or its objectives, policies and processes for managing

interest rate risk or the methods used to measure this risk from the previous reporting period.

Interest rate movements have not been sufficiently significant during the year to have an impact on the council's year end

result.

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause council

to make a financial loss. Council have exposure to credit risk on some financial assets included in the balance sheet.

Particularly significant areas of credit risk exist in relation to outstanding fees and fines as well as loans and receivables from

sporting clubs and associations. To help manage this risk:

council have a policy for establishing credit limits for the entities council deal with;

(a) Objectives and policies

The Council's principal financial instruments comprise cash assets, term deposits, receivables (excluding statutory

receivables), payables (excluding statutory payables) and bank and TCV borrowings. Details of the material accounting policy

information and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which

income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is

disclosed in the notes of the financial statements. Risk management is carried out by senior management under policies

approved by the council. These policies include identification and analysis of the risk exposure to council and appropriate

procedures, controls and risk minimisation.

Market risk is the risk that the fair value or future cash flows of council financial instruments will fluctuate because of changes

in market prices. The Council's exposure to market risk is primarily through interest rate risk with only insignificant exposure

to other price risks and no exposure to foreign currency risk.

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. Council's interest rate liability risk arises primarily from long term loans and

borrowings at fixed rates which exposes council to fair value interest rate risk. Cash flow interest rate risk is the risk that the

future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Council has minimal

exposure to cash flow interest rate risk through its cash and deposits that are at floating rates.

Investment of surplus funds is made with approved financial institutions under the

Local Government Act 2020

. Council

manages interest rate risk by adopting an investment policy that ensures:

diversification of investment product,

monitoring of return on investment, and

council may require collateral where appropriate; and

council only invest surplus funds with financial institutions which have a recognised credit rating specified in council's

investment policy.

Receivables consist of a large number of customers, spread across the ratepayer, business and government sectors. Credit

risk associated with the council's financial assets is minimal because the main debtor is secured by a charge over the

rateable property.

There are no material financial assets which are individually determined to be impaired.

Council may also be subject to credit risk for transactions which are not included in the balance sheet, such as when council

provide a guarantee for another party. Details of our contingent liabilities are disclosed in Note 8.1(b).

have readily accessible standby facilities and other funding arrangements in place;

The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any

allowance for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Council

does not hold any collateral.

With the exception of borrowings, all financial liabilities are expected to be settled within normal terms of trade. Details of the

maturity profile for borrowings are disclosed at Note 5.4.

Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and

experience of the financial markets, Council believes the following movements are 'reasonably possible' over the next 12

months:

A parallel shift of +1% and 0% in market interest rates (AUD) from year-end rates of 3.5%.

These movements will not have a material impact on the valuation of Council's financial assets and liabilities, nor will they

have a material impact on the results of Council's operations.

The council's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the

balance sheet.

(d) Liquidity risk

Liquidity risk includes the risk that, as a result of council's operational liquidity requirements it will not have sufficient funds to

settle a transaction when required or will be forced to sell a financial asset at below value or may be unable to settle or

recover a financial asset.

To help reduce these risks council:

have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained;

have 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.

There has been no significant change in council's exposure, or its objectives, policies and processes for managing liquidity

risk or the methods used to measure this risk from the previous reporting period.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

8.4

Fair value measurement

Revaluation

Asset Class

Revaluation

frequency

Land

3 years

Buildings

3 years

Roads

3 years

Bridges

3 years

Footpaths and cycleways

3 years

Drainage

3 years

Recreational, leisure and community facilities

3 years

Parks, open space and streetscapes

3 years

Other infrastructure

3 years

Impairment of assets

8.5 Events occurring after balance date

No matters have occurred after balance date that require disclosure in the financial report.

Fair value hierarchy

Council's financial assets and liabilities are not valued in accordance with the fair value hierarchy, Council's financial assets

and liabilities are measured at amortised cost.

Council measures certain assets and liabilities at fair value where required or permitted by Australian Accounting Standards.

AASB 13 Fair value measurement, aims to improve consistency and reduce complexity by providing a definition of fair value

and a single source of fair value measurement and disclosure requirements for use across Australian Accounting Standards.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within a fair

value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a

whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

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 of disposal 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.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or

indirectly observable; and

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

unobservable.

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation hierarchy will only

occur if an external change in the restrictions or limitations of use of an asset result in changes to the permissible or practical

highest and best use of the asset. In addition, Council undertakes a formal revaluation of land, buildings and infrastructure

assets on a regular basis ranging from 3 to 5 years. The valuation is performed either by experienced council officers or

independent experts. The following table sets out the frequency of revaluations by asset class.

Where the assets are revalued, the revaluation increases are credited directly to the asset revaluation reserve except to the

extent that an increase reverses a prior year decrease for that class of asset that had been recognised as an expense in

which case the increase is recognised as revenue up to the amount of the expense. Revaluation decreases are recognised

as an expense except where prior increases are included in the asset revaluation reserve for that class of asset in which case

the decrease is taken to the reserve to the extent of the remaining increases. Within the same class of assets, revaluation

increases and decreases within the year are offset.

For the purpose of fair value disclosures, council has determined classes of assets and liabilities on the basis of the nature,

characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, council determines whether transfers have occurred between levels in the hierarchy by re-assessing

categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each

reporting period.

Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at

their fair value, being the price that would be received to sell an asset (or paid to transfer a liability) in an orderly transaction

between market participants at the measurement date. (For plant and equipment carrying amount is considered to

approximate fair value given short useful lives). At balance date, the council reviewed the carrying value of the individual

classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying

value materially differed from the fair value at balance date, the class of asset was revalued.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

Note 9 Other matters

9.1 Reserves

Balance at

beginning of

reporting period

Increase

(decrease)

Balance at

end of

reporting period

(a) Asset revaluation reserves

$'000

2024 Property

Land and land improvements

615,606

Buildings

51,156

666,762

Plant and equipment

Art works

254

Infrastructure

Roads

542,658

Bridges

4,689

Footpath and cycleways

107,650

Drainage

170,462

Recreational, leisure and community

32,556

Parks, open space and streetscapes

28,732

Off street car parks

1,792

888,539

Total asset revaluation reserves

1,555,555

2023 Property

Land and land improvements

696,815

(81,209)

615,606

Buildings

33,181

17,975

51,156

(63,234)

729,996

666,762

Plant and equipment

Art works

206

254

206

254

Infrastructure

Roads

483,875

58,783

542,658

Bridges

3,946

743

4,689

Footpath and cycleways

92,657

14,993

107,650

Drainage

135,827

34,635

170,462

Recreational, leisure and community

19,870

12,686

32,556

Parks, open space and streetscapes

23,887

4,845

28,732

Off street car parks

1,792

126,685

761,854

888,539

Total asset revaluation reserves

1,492,056

63,499

1,555,555

The asset revaluation reserve is used to record the increased (net) value of Councils assets over

time.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

9.1 Reserves (continued)

Balance at

beginning of

reporting period

Transfer from

accumulated

surplus

Transfer to

accumulated

surplus

Balance at

end of

reporting period

(b) Other reserves

$'000

2024 Other reserves

Developer contribution - open space

12,610

7,688

20,298

Developer contribution plan - Brimbank

and Sunshine

922

4,277

5,199

Discretionary loan repayment

11,100

1,300

12,400

Major capital works projects

9,547

Total other reserves

37,534

9,910

47,444

2023 Other reserves

Developer contribution - open space

8,848

3,762

12,610

Developer contribution plan - Brimbank

and Sunshine

549

3,728

4,277

Discretionary loan repayment

9,800

1,300

11,100

Major capital works projects

9,547

Total other reserves

31,923

5,611

37,534

Developer contribution - open space fund reserve:

Developer contribution plan - Brimbank and Sunshine

Discretionary loan repayment reserve:

Major capital works projects

This reserve has been opened to provide a source of funding for major capital works projects.

This reserve services funds from developer contributions collected through council's planning scheme. The funds held in

the reserve will be utilised through infrastructure works for the identified purpose.

This reserve is set up to cater for contributions from developers within the municipality.

At the Ordinary Council Meeting on 27 May 2014, council resolved to participate in the Municipal Association of Victoria

(MAV) Debt Procurement Project for interest only debt. In order to repay the principal at maturity date council has

established a loan repayment reserve for interest only debt and associated cash investment. There will be allocations of

set amount of funds each year to this reserve.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

2024 2023

$'000

9.2

Reconciliation of cash flows from operating activities to surplus/(deficit)

Surplus/(deficit) for the year

3,038

31,691

Non-cash adjustments:

Profit/(loss) on disposal of property, infrastructure, plant and equipment

(334)

(392)

Depreciation

57,253

49,094

Contributions - non-monetary assets

(3,884)

(4,532)

Finance costs

2,701

2,594

Asset written off / impaired

147

Other

(505)

Change in assets and liabilities:

(Increase)/decrease in trade and other receivables

(4,645)

685

(Increase)/decrease in prepayments

(593)

(24)

(Increase)/decrease in accrued income

(162)

(188)

(Increase)/decrease in other assets

(16)

(Increase)/decrease in inventories

Increase/(decrease) in trade and other payables

(8,441)

5,187

Increase/(decrease) in trust funds and deposits

164

(4,302)

Increase/(decrease) in contract and other liabilities

(1,171)

(7,400)

Increase/(decrease) in provisions

1,367

1,088

Net cash provided by/(used in) operating activities

44,835

73,652

9.3 Superannuation

Accumulation

Defined benefit

Funding arrangements

Net investment returns

5.7% pa

Salary information

3.5% pa

Price inflation (CPI)

2.8% pa

Council makes the majority of its employer superannuation contributions in respect of its employees to the Local

Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and

defined benefit, each of which is funded differently. Obligations for contributions to the Fund are recognised as an

expense in the Comprehensive Income Statement when they are made or due.

The Fund's accumulation category, Vision MySuper/Vision Super Saver, receives both employer and employee

contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee

earnings (for the year ended 30 June 2024, this was 11.0% as required under Superannuation Guarantee (SG)

legislation (2023: 10.5%)).

Council does not use defined benefit accounting for its defined benefit obligations under the Fund's Defined Benefit

category. This is because the Fund's Defined Benefit category is a pooled multi-employer sponsored plan.

The VBI is used as the primary funding indicator. Because the VBI was above 100%, the 30 June 2023 actuarial

investigation determined the Defined Benefit category was in a satisfactory financial position and that no change was

necessary to the Defined Benefit category’s funding arrangements from prior years.

There is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as

the defined benefit obligation is a floating obligation between the participating employers and the only time that the

aggregate obligation is allocated to specific employers is when a call is made. As a result, the level of participation of

Council in the Fund cannot be measured as a percentage compared with other participating employers. Therefore,

the Fund Actuary is unable to allocate benefit liabilities, assets and costs between employers for the purposes of

AASB 119.

Council makes employer contributions to the Defined Benefit category of the Fund at rates determined by the

Trustee on the advice of the Fund Actuary.

A triennial actuarial investigation for the Defined Benefit category as at 30 June 2023 was conducted and completed

by 31 December 2023. The vested benefit index (VBI) of the Defined Benefit category as at 30 June 2023 was

104.1%. Council was notified of the 30 June 2023 VBI during August 2023.

The financial assumptions used to calculate the 30 June 2023 VBI were:

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Brimbank Council Meeting No. 637 - 10 September 2024

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

9.3 Superannuation (continued)

Employer contributions

(A) Regular contributions

(B) Funding calls

The 2023 triennial actuarial investigation surplus amounts

2023 2022

(Triennial) (Interim)

• A VBI surplus

84.7

44.6

• A total service liability surplus

123.6

105.8

•

141.9

111.9

On the basis of the results of the 2023 triennial actuarial investigation conducted by the Fund Actuary, council makes

employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the

year ended 30 June 2024, this rate was 11.0% of members' salaries (10.5% in 2022/23). This rate is expected to

increase in line with any increases in the SG contribution rate and was reviewed as part of the 30 June 2023 triennial

valuation.

In addition, Council reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment

above the funded resignation or retirement benefit.

The discounted accrued benefit surplus means that the current value of the assets in the Fund's Defined Benefit

category exceeds the value of benefits payable in the future but accrued in respect of service to 30 June 2023.

The total service liability surplus means that the current value of the assets in the Fund's Defined Benefit category

plus expected future contributions exceeds the value of expected future benefits and expenses as at 30 June 2023.

The VBI surplus means that the market value of the fund’s assets supporting the defined benefit obligations exceed

the vested benefits that the defined benefit members would have been entitled to if they had all exited on 30 June

2023.

A discounted accrued benefits surplus

The Fund’s actuarial investigations identified the following for the Defined Benefit category of which Council is a

contributing employer:

An actuarial investigation is conducted annually for the Defined Benefit category of which Council is a contributing

employer. Generally, a full actuarial investigation is conducted every three years and interim actuarial investigations

are conducted for each intervening year. A full investigation was conducted as at 30 June 2023.

If there is a surplus in the Fund, the surplus cannot be returned to the participating employers.

In the event that a participating employer is wound-up, the defined benefit obligations of that employer will be

transferred to that employer’s successor.

In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s

participating employers (including Council) are required to make an employer contribution to cover the shortfall.

Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund

includes lifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up.

If the Defined Benefit category is in an unsatisfactory financial position at an actuarial investigation or the Defined

Benefit category‘s VBI is below its shortfall limit at any time other than the date of the actuarial investigation, the

Defined Benefit category has a shortfall for the purposes of SPS 160 and the Fund is required to put a plan in place

so that the shortfall is fully funded within three years of the shortfall occurring. The Fund monitors its VBI on a

quarterly basis and the Fund has set its shortfall limit at 98% from 26 July 2024 (previously 97%).

Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on

the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s Defined Benefit category, together with the

employer’s payroll at 30 June 1993 and at the date the shortfall has been calculated.

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Attachment 12.3.1

Notes to the Financial Report for the Year Ended 30 June 2024

9.3 Superannuation (continued)

The 2024 interim actuarial investigation

Net investment returns

5.6% pa

Salary information

3.5% pa

Price inflation (CPI)

2.7% pa

The 2020 triennial investigation

2023

Triennial

investigation

Net investment returns

5.6% pa

5.7% pa

Salary inflation

2.5% pa for the first two

years and 2.75%pa

thereafter

3.5% pa

Price inflation (CPI)

2.0% pa

2.8% pa

Superannuation contributions

Scheme

Type of

Rate

2024 2023

Scheme

$'000

Vision Super

Defined benefits

11.0% (2023: 10.5%)

538

567

Vision Super

Accumulation

11.0% (2023: 10.5%)

4,728

4,373

Other funds

Various

11.0% (2023: 10.5%)

4,597

3,775

Note 10 Change in accounting policy

The VBI of the Defined Benefit category was 105.4% as at 30 June 2024. The financial assumptions used to

calculate the 30 June 2024 VBI were:

Council was notified of the 30 June 2024 VBI during August 2024.

An interim actuarial investigation is being conducted for the Fund's position as at 30 June 2024 as the Fund provides

lifetime pensions in the Defined Benefit category. It is anticipated that this actuarial investigation will be completed by

October 2024.

The last triennial actuarial investigation conducted prior to 30 June 2023 was at 30 June 2020. This actuarial

investigation was completed by 31 December 2020. The financial assumptions for the purposes of that investigation

was:

2020

Triennial

investigation

Because the VBI was above 100%, the Defined Benefit category was in a satisfactory financial position at 30 June

2024 and it is expected that the actuarial investigation will recommend that no change will be necessary to the

Defined Benefit category’s funding arrangements from prior years.

There have been no changes to accounting policies in the 2023-24 year.

Contributions by Council (excluding any unfunded liability payments) to the above superannuation plans for the

financial year ended 30 June 2024 are detailed below:

The expected contributions to be paid to the Defined Benefit category of Vision Super for the year ending 30 June

2025 is $510,000.

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Attachment 12.3.1

BRIMBANK CITY COUNCIL

ANNUAL PERFORMANCE STATEMENT

For the Year Ended 30 June 2024

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Attachment 12.3.2

Table of Contents

Certification of the performance statement

Victorian Auditor-General’s Office audit report

Section 1.

Description of municipality

Section 2

. Service performance indicators

Section 3.

Financial performance indicators

Section 4.

Sustainable capacity indicators

Section 5.

Notes to the accounts

5.1.

Basis of preparation

5.2.

Definitions

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Attachment 12.3.2

Certification of the Performance Statements

Andrew Brae CA

Principal Accounting Officer

Dated: 10 September 2024

Melbourne

Councillor

Dated: 10 September 2024

Melbourne

Councillor

Dated: 10 September 2024

Melbourne

Fiona Blair

Chief Executive Officer

Dated: 10 September 2024

Melbourne

In my opinion, the accompanying performance statement has been prepared in accordance with the Local

Government Act 2020 and the Local Government (Planning and Reporting) Regulations 2020

At the date of signing, we are not aware of any circumstances that would render any particulars in the

performance statement to be misleading or inaccurate.

We have been authorised by the council and by the Local Government (Planning and Reporting) Regulations

2020 to certify this performance statement in its final form.

The performance statement contains the relevant performance indicators, measures and results in relation to

service performance, financial performance and sustainable capacity.

In our opinion, the accompanying performance statement of the Brimbank City Council for the year ended 30

June 2024 presents fairly the results of council’s performance in accordance with the Local Government Act

2020 and the Local Government (Planning and Reporting) Regulations 2020.

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Attachment 12.3.2

Independent Auditor's Report

Page 2

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Attachment 12.3.2

Section 1. Description of municipality

The City of Brimbank was established in 1994, uniting the former Keilor and Sunshine

councils. It was named after Brimbank Park in Keilor, which gained its name from the

practice of farmers driving livestock ‘around the brim of the bank’ of the Maribyrnong River.

Located in the western and north-western suburbs of Melbourne, Brimbank is between 12

and 23 kilometres west and north-west of the Melbourne CBD. It is bound by Hume City

Council in the north, Maribyrnong and Moonee Valley City Councils in the east, Hobsons

Bay and Wyndham City Councils in the south and Melton City Council in the west.

Brimbank is a vibrant, growing community in the heart of Melbourne’s west. Diversity is

central to our identity – we are proudly multicultural, embracing people from around the

world and weaving their stories into our own. Brimbank’s estimated resident population of

193,146 makes it one of the most populous municipality in Greater Melbourne.

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Attachment 12.3.2

2021

2022 2023

Service / Indicator / Measure

[Formula]

Actual

Target as per

budget

Actual

Aquatic Facilities

Utilisation

AF6

Utilisation of aquatic facilities

0.81

1.48

7.60

N/A

9.73

[Number of visits to aquatic facilities / Municipal

population]

Animal Management

Health and safety

AM7

Animal management prosecutions

100%

75%

100%

N/A

100%

[Number of successful animal management

prosecutions / Number of animal management

prosecutions] x 100

Section 2 - Service Performance Indicators

For the year ended 30 June 2024

Results

2024

Comment

Brimbank Aquatic and Wellness Centre increased

visitation to over 1.4 million in total for the year. Although

casual visitation slightly declined, the venue experienced

increases in swim school visitation and fitness visits

remained strong throughout. The swim school at

Sunshine Leisure Centre also saw visitation increases,

exceeding 400,000. The swim school achieved more than

6,000 students across both venues, well exceeding all

targets. It is worth also noting the increase in unique

visitors to the venue due to the commencement of Allied

Health services and the continued growth of tenant

partner clients at BAWC. The utilisation of aquatic facilities

for 23/24 sits at the higher end of the result range with

9.73. Find out more about our leisure centres at

https://www.brimbank.vic.gov.au/leisure-parks-and

facilities.

Brimbank City Council investigates all issues under the

Domestic Animals Act (1994) and, where supportive

evidence is available, actively prosecutes these matters.

Strong efforts continue in this area to bring persons

responsible for breaches of the Act before the Courts for

determination and appropriate penalty. This result is

within the range expected by Council. Find out more

about animal management at Brimbank

www.brimbank.vic.gov.au/pets-and-animals.

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Attachment 12.3.2

Food Safety

Health and safety

FS4

Critical and major non-compliance outcome

notifications

100.00% 100.00% 95.97%

N/A

100.00%

[Number of critical non-compliance outcome

notifications and major non-compliance notifications

about a food premises followed up / Number of critical

non-compliance outcome notifications and major non

compliance notifications about a food premises] x100

Governance

Consultation and engagement

Satisfaction with community consultation and

engagement

[Community satisfaction rating out of 100 with how

Council has performed on community consultation

and engagement ]

Libraries

Participation

LB7

Library membership

#N/A

N/A

34.80%

[Number of registered library members / Population]

x100

Brimbank City Council continues to prioritise the delivery

of a risk-based food safety service. All premises with

major or critical non-compliance notifications are routinely

followed up. This result is within the range expected by

Council. Find out more about food safety at

https://www.brimbank.vic.gov.au/business/types

businesses/food-premises-and-safety.

The community satisfaction rating on Council’s

performance in community consultation and engagement

is reported from the independent annual Community

Satisfaction Survey for 2023-2024. This result is markedly

higher than that of 2022-2023. This is likely due to a

combination of factors. A new survey methodology saw

face-to-face interviews conducted by a new external

provider. The provider notes this approach tends to result

in higher satisfaction reporting (though not to the extent

seen here). Over the past few years, Council has

delivered a new Community Engagement Policy and a

Community Voice Panel of representative Brimbank

residents. Council has also conducted a number of

extensive community consultations, both on-line and

across Brimbank. Find out more about the Annual

Community Satisfaction Survey at

https://brimbank.vic.gov.au/about-council/how-we

work/our-performance/community-satisfaction-survey.

The high number of library members, at 34.8% of the

population, reflects a strong engagement and utilisation of

library services within the community with many residents

benefiting from the resources and opportunities provided

by the libraries. The high level of membership

demonstrates that Brimbank Libraries are effectively

meeting the needs and interests of a large segment of the

community. It also underscores the libraries' role as

essential community hubs, fostering literacy, learning,

social engagement, and access to information. Find out

more about Brimbank Libraries at

http://www.brimbanklibraries.vic.gov.au.

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Attachment 12.3.2

Maternal and Child Health (MCH)

Participation

MC4

Participation in the MCH service

63.05% 61.37% 66.41%

N/A

67.45%

[Number of children who attend the MCH service at

least once (in the year) / Number of children enrolled

in the MCH service] x100

MC5

Participation in the MCH service by Aboriginal

children

71.72% 76.76% 77.54%

N/A

75.94%

[Number of Aboriginal children who attend the MCH

service at least once (in the year) / Number of

Aboriginal children enrolled in the MCH service] x100

Roads

Condition

Sealed local roads maintained to condition standards

91.49% 92.82% 93.26% 90.00% 92.43%

[Number of kilometres of sealed local roads below the

renewal intervention level set by Council / Kilometres

of sealed local roads] x100

Statutory Planning

Service standard

SP2

Planning applications decided within required

time frames

70.55% 70.92% 70.03% 70.00% 84.32%

[(Number of regular planning application decisions

made within 60 days) + (Number of VicSmart planning

application decisions made within 10 days) / Number

of planning application decisions made] x100

The percentage of sealed local roads maintained to

condition standard is similar to the rate for 2022-2023 and

remains in the range expected by Council. Council is

committed to maintenance of the local road network and

continues to deliver road maintenance and rehabilitation

works as required.

Brimbank City Council is committed to working with

applicants and objectors to achieve good outcomes in

planning determinations. Council continues to balance

time taken to negotiate land use and development issues

with the need to ensure efficient processing of

applications and has put a lot of work into improving

processes to be as efficient as possible. This result is a

20% improvement on the result achieved last year and

falls within the range set by Council. Find out more about

Brimbank’s Statutory Planning Service at

https://www.brimbank.vic.gov.au/building-and

planning/planning.

Brimbank City Council is committed to providing high

quality Maternal and Child Health (MCH) services. The

2023/2024 participation result is lower than the expected

range due to the impacts of parental leave and other staff

leave and the lack of qualified MCH staff state-wide to

provide back-fill. Available appointments were prioritised

for Aboriginal and Torres Strait Islander clients and clients

identified as vulnerable. This result is outside the range

expected by Council. More information about the

Maternal and Child Health Service can be found at

https://www.brimbank.vic.gov.au/living-here/my

family/children/maternal-and-child-health.

Brimbank City Council is committed to providing high

quality Maternal and Child Health (MCH) services to

Brimbank’s Aboriginal and Torres Strait Islander

community. This result is within the range set by Council.

More information about the Maternal and Child Health

Service can be found at

https://www.brimbank.vic.gov.au/living-here/my

family/children/maternal-and-child-health.

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Attachment 12.3.2

Waste Management

Waste diversion

WC5

Kerbside collection waste diverted from landfill

40.60% 41.46% 42.22% 42.00% 40.66%

[Weight of recyclables and green organics collected

from kerbside bins / Weight of garbage, recyclables

and green organics collected from kerbside bins]

x100

Brimbank City Council seeks to deliver an effective and

efficient waste management and recycling service for the

community. the waste diversion rate from landfill

decreased slightly when compared to last year’s figure.

The result remains at the mid-point of the range expected

by Council. Find out more about Waste Services at

Brimbank: https://www.brimbank.vic.gov.au/rubbish

recycling-and-waste.

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Attachment 12.3.2

2021

2022 2023

2025 2026 2027

2028

Material Variations and Comments

Dimension / Indicator / Measure

[Formula]

Actual

Target as per

budget

Actual Forecasts Forecasts Forecasts Forecasts

Efficiency

Expenditure level

Expenses per property assessment

$2,599.91 $2,621.14 $2,840.83 $3,032.46 $3,111.77 $3,220.01 $3,339.42 $3,384.27 $3,446.67

[Total expenses / Number of property assessments]

Revenue level

Average rate per property assessment

$1,668.52 $1,703.13 $1,717.81

N/A

$1,776.54 $1,819.68 $1,859.82 $1,900.89 $1,943.04

[Sum of all general rates and municipal charges /

Number of property assessments]

Liquidity

Working capital

Current assets compared to current liabilities

174.23% 175.65% 206.14% 146.53% 216.10% 179.30% 106.46% 133.23% 130.68%

[Current assets / Current liabilities] x100

Unrestricted cash

Unrestricted cash compared to current liabilities

67.27% 37.63% 73.75%

N/A

81.68% 122.27% 69.59% 86.28%

84.83%

[Unrestricted cash / Current liabilities] x100

Section 3 - Financial Performance Indicators

For the year ended 30 June 2024

Results

Forecasts

Brimbank City Council continues to provide an efficient

property assessment service. The result has increased in

2023/2024 due to increased costs, however it remains in

line with previous years and the range expected by

Council.

Brimbank City Council continues to provide an efficient

property assessment service. The minimal rate increase

is within the Victorian Government Rate Cap and the

range expected by Council.

Brimbank City Council places high value on the effective

management of Council’s assets and liabilities. The

current assets and working capital ratio are slightly

higher than the previous years mainly due to the

increase in receivables the decrease in payables at year

end compared to previous years. These figures can

fluctuate from year to year and is anticipated the result

will will move towards previous years results in the

future. The result is in the range expected by Council.

Brimbank City Council places high value on effective

management of Council assets and liabilities. The

2023/2024 unrestricted cash balance has increased

since the last financial year. This is due to the reduction

in trade payables balances at year end. The result is in

the range expected by Council.

2024

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Attachment 12.3.2

Obligations

Loans and borrowings

Loans and borrowings compared to rates

54.25% 54.52% 50.81%

N/A

47.35% 48.23% 36.20% 35.21%

36.23%

[Interest bearing loans and borrowings / Rate

revenue] x100

Loans and borrowings repayments compared to

rates

4.93%

6.59%

6.96%

N/A

6.04%

6.11%

18.22%

7.43%

7.95%

[Interest and principal repayments on interest bearing

loans and borrowings / Rate revenue] x100

Indebtedness

Non-current liabilities compared to own source

revenue

52.11% 50.93% 44.97%

N/A

40.84% 41.51% 21.12% 28.46%

30.74%

[Non-current liabilities / Own source revenue] x100

Asset renewal and upgrade

Asset renewal and upgrade compared to

depreciation

106.99% 112.50% 72.24% 124.32% 67.26% 93.22% 75.69% 81.06%

81.35%

[Asset renewal and asset upgrade expense / Asset

depreciation] x100

Operating position

Adjusted underlying result

OP1

Adjusted underlying surplus (or deficit)

2.84%

8.49%

4.88%

N/A

-1.57%

-0.49%

-2.48%

-1.87%

-2.17%

[Adjusted underlying surplus (deficit)/ Adjusted

underlying revenue] x100

Brimbank City Council places strong emphasis on

efficient and effective financial management. There was

a decrease in this measure in 2023/2024, the improved

result in 2023/2024 reflects increased income due to the

Brimbank Aquatic and Wellness Centre (BAWC) as well

as increased interest on investments. This result is within

the range expected by Council.

Brimbank City Council places strong emphasis on the

ongoing renewal and upgrade of assets and has

obtained resourcing for a number asset renewal projects

over the past few years. The decrease in the 2023/2024

result reflects an increase in depreciation due to

increased infrastructure costs resulting in valuations

increases, this has resulted in Council not meeting its

target.

This indicator has declined due to increases in employee

and materials costs which have been greater than the

increases in income over the past year. It is projected

this result may decrease further as forecast figures see

further increases in employee and materials costs. The

result is in the range expected by Council.

Brimbank City Council places strong emphasis on

efficient and effective financial management, including

management of loans and borrowings. The 2023/2024

result is lower than last year as borrowings repayments

are higher than new loans. The result is in the range

expected by Council.

Brimbank City Council places strong emphasis on

efficient and effective financial management, including

management loans and borrowings. The repayments

figure decreased in 2023/2024, reflecting a decrease in

the overall balance of loans. This result remains in the

range set by Council.