Extraordinary Council Meeting






Extraordinary Council Meeting

29 October 2019


Live Streaming of Council Meeting


In the spirit of open, accessible and transparent government, this meeting of the Inner West Council is being streamed live on Council’s website. By speaking at a Council meeting, members of the public agree to being recorded and must ensure their speech to the Council is respectful and use appropriate language. A person who uses defamatory, discriminatory or offensive language may be exposed to liability for which Council takes no responsibility. Any part of this meeting that is held in closed session will not be recorded


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Your request will then be added to a list that is shown to the Chairperson on the night of the meeting.


Where Items are deferred, Council reserves the right to defer speakers until that Item is heard on the next occasion.




Inner West Council is committed to ensuring people with a disability have equal opportunity to take part in Council and Committee Meetings. At the Ashfield Council Chambers there is a hearing loop service available to assist persons with a hearing impairment. If you have any other access or disability related participation needs and wish to know more, call 9392 5657.


Persons in the public gallery are advised that under the Local Government Act 1993, a person may NOT record a Council meeting without the permission of Council.


Any persons found recording without authority will be expelled from the meeting.


“Record” includes the use of any form of audio, video and still camera equipment or mobile phone capable of recording speech.


An audio recording of this meeting will be taken for the purpose of verifying the accuracy of the minutes.  




Extraordinary Council Meeting

29 October 2019







1          Acknowledgement of Country


2          Apologies


3          Notice of Webcasting


4          Disclosures of Interest (Section 451 of the Local Government Act
and Council’s Code of Conduct)


5          Moment of Quiet Contemplation



6          Public Forum – Hearing from All Registered Speakers

7          Condolence Motions


Nil at the time of printing.

8          Mayoral Minutes


Nil at the time of printing.

9          Reports with Strategic Implications


Nil at the time of printing.

10        Reports for Council Decision


ITEM                                                                                                                                         Page


C1019(3) Item 1  Financial Statements 2018/19                                                                      4


11        Reports for Noting


Nil at the time of printing.

12        Reports with Confidential Information


Reports appearing in this section of the Business Paper are confidential in their entirety or contain confidential information in attachments.


The confidential information has been circulated separately.

ITEM                                                                                                                                         Page


C1019(3) Item 2  RFT 28-19 Park and Verge Mowing                                                           86

Extraordinary Council Meeting

29 October 2019


Item No:         C1019(3) Item 1

Subject:         Financial Statements 2018/19           

Prepared By:      Daryl Jackson - Chief Financial Officer  

Authorised By:  Melodie Whiting - Director Corporate






THAT Council:


1.            Receives and notes the report; and


2.            Endorses the Financial Statements to be placed on public exhibition with a view of tabling the final report at the November 2019 Council meeting.





Council is required to prepare Financial Statements in accordance with the Local Government Act and Regulations, Local Government Code of Accounting Practice and Australian Accounting Standards.  At its August meeting, Council resolved to release its statements for audit.  The financial reporting period for the 2018/19 Financial Statements is 1 July 2018 to 30 June 2019.


The 2018/19 Financial Statements are required (by legislation) to be endorsed by Council and then placed on public exhibition.




The 2018/19 Financial Statements are the third set of financial reports for the Inner West Council.  Below is a summary of the financial information by reporting area.


Income Statement and Balance Sheet.



Council’s Income Statement for the year discloses that the Net Operating Result from Continuing Operations was a surplus $16.9m in contrast to an original budget surplus of $23.0m.  Council’s surplus of $16.9m is largely attributed to Capital Grants of $23.4m that will be applied to Capital Works.  This means Council has a Net Operating Deficit before Grants and Contributions provided for capital purposes of $6.6m.


Council loaded its Land and Buildings into one database for consistent asset management which identified errors relating to previous reporting periods.


Council also identified land parcels that had been incorrectly included in more than one asset class for the following asset classes -


• Community Land ($47.8m)

• Crown Land ($1.7m)

• Operational Land ($13m)


These duplicate land parcels reduced retained earnings as at 1 July 2017.  Within this process, $4.7m of increases in land value (as per the FY18 revaluation that was undertaken by Inner West Council) that flowed into the Asset Revaluation Reserve, which related to duplicate land parcels was also removed.  Council also identified duplicate building assets in the asset register.  These items ($4.7m) reduced the IPP&E Revaluation Reserve as at 30 June 2018.



Council’s Balance Sheet discloses net assets of $2.37 billion, primarily made up of Infrastructure related assets of $2.16 billion.  A breakdown of infrastructure assets can be found in the capital schedule known as note 9(a).


Council’s cash position sees it hold $221.8m in cash and investments.  The following is a breakdown by Reserve.



Amount ($M)

Externally Restricted - S94 Develop Contributions


Externally Restricted - Unexpended Grants


Domestic Waste


Externally Restricted - Other Externally Restricted


Internally Restricted - Employee Leave Entitlement


Internally Restricted – Deposits and Bonds


Internally Restricted – Other


Working Funds





As a part of this process, Council’s has continued to fully fund its Employee Leave Entitlement at 100% of the estimated provision. (Previously only partially funded by the former 3 Council’s at approximately 50% of the total Employee Leave Entitlement).



Local Government Industry Indicators.


The Local Government indicators (summarised below) are determined by in the Code of Accounting practice.  The indicators allow for inter council comparisons to be consistently made across the local government sector. The indicators are as follows -



Operating Performance Ratio.


The purpose of the Operating Performance Ratio is to measure Council’s achievement of containing operating expenses within operating revenue.


Council’s operating performance ratio was 0.46% which is above the benchmark of zero.  This was a reduction based on last year’s ratio of 3.24% as the Merger Implementation Grant (received in 16/17) were expensed during the current and past financial years.



Own Source Operating Revenue Ratio.


The purpose of this ratio is to measure fiscal flexibility. The ratio highlights the degree of reliance on external funding sources such as operating grants & contributions.



Council's Own Source Operating Revenue ratio is above the benchmark of 60% which means that it has a low reliance on grants to fund operating expenditure.  This ratio has decreased in comparison to the 17/18 result as Council received lower State Government grants in the 18/19 financial year compared to the previous financial year.



Unrestricted Current Ratio.


The purpose of this ratio is to assess the adequacy of working capital and its ability to satisfy obligations in the short term for the unrestricted activities of Council.



Council's Unrestricted Current ratio is above the benchmark of >1.5x.  This benchmark will be used in the development in Council’s Long-term Financial Plan to ensure that Council is financially sustainable and able to meet its ongoing short-term financial obligations (Payroll and Creditors).  This ratio is relatively consistent with the prior year result.



Debt Service Coverage Ratio.


This ratio measures the availability of operating cash to service debt including interest, principal and lease payments.



Council's Debt Service ratio is above the benchmark of >2x and is capable of servicing its existing loan obligations as they are secured against rates income and factored into the budget.  The ratio has decreased in comparison to the prior year as Council’s operating expenditure increased.  The Service Units hiring new staff into open positions in line with their JCC approved structure ($9.4m).


Rates, Annual Charges, Interest and Extra Charges Outstanding percentage.


The ratio helps assess the impact of uncollected rates and annual charges on Council's liquidity and the adequacy of recovery efforts.



Council's Outstanding Rates and Annual Charges ratio exceeds the benchmark of <5%.  Council will continue with its debt recovery actions for the 2019/20 financial year noting that no debt recovery action is taken against eligible pensioners.



Cash Expense Cover Ratio.


This liquidity ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash inflow.



Council's Cash Expense Cover ratio is above the benchmark of >3 months.  This will continue to diminish in the coming financial years as working funds are used to address Council’s infrastructure backlog.


Council has exceeded benchmark in all of its financial indicators for this financial period.  These will continue to be monitored throughout the 2019/20 financial year and in Council’s Long-term Financial Plan.



Council Infrastructure Industry Indicators


Council's Infrastructure asset indicators (found in Special Schedule 7) are a summary of Council’s infrastructure conditions for the financial year. Special Schedule 7 is not audited by the Audit Office in 2018/19.



A summary of the indicators show that Council needs to continue to spend money on renewals at a rate as assets continue to depreciate but still has a backlog of approximately $142m that needs to be addressed.  Working funds have been allocated over the Long-term Financial Plan to address part of this backlog.  However, the infrastructure backlog of $142m exceeds the total available working funds for Council to reduce the backlog below the benchmark on <2%.


These indicators will be reviewed on an ongoing basis as a part of the Long-term Financial Plans and Asset Management Plans process.


Next Steps


To ensure compliance with legislation the following steps need to occur:


-     Council endorses the financial reports and signs the accounts 29 October 2019;


-     Council receives the Audit report from the Audit Office to be incorporated in the Financial Statements and then submitted to the Office of Local Government by 31 October 2019;


-     Council places its Financial Statements on public exhibition for public comment;

-     Council endorses the final report at its 26 November 2019 meeting noting any comments from the public exhibition period.




There are no net financial implications of this report. It is noted that general funds have been allocated to fund Council’s infrastructure shortfall over the Council’s Long-term Financial Plans.


The Audit, Risk and Improvement Committee have had a briefing with Audit Office and Council officers to discuss the conduct of the audit and Council’s financial position.


Attachment 1 has been published separately in the Attachments Document on Council’s Website








Inner West Council General Purpose Financial Statements for year ended 30 June 2019


Extraordinary Council Meeting

29 October 2019






























































Extraordinary Council Meeting

29 October 2019


Item No:         C1019(3) Item 2

Subject:         RFT 28-19 Park and Verge Mowing           

Prepared By:      Lachlan Broadbent - Assistant Streetscape Supervisor  

Authorised By:  Cathy Edwards-Davis - Director Infrastructure







1.   Council moves into closed session to deal with this matter as the information contained in CONFIDENTIAL ATTACHMENT 1 of this report is classified as confidential under the provisions of Section 10A (2) (c) and (d) of the Local Government Act 1993  for the following reasons:

I.    Information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business;

II.   commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it;


2.   And in accordance with Sections 10A (4) of the Local Government Act 1993, that the Chairperson allow members of the public to make representations as to whether this part of the meeting should be closed.


3.   Council adopt the recommendation contained in the CONFIDENTIAL ATTACHMENT 1.




Council invited tenders for Park & Verge mowing of the former Ashfield Local Government Area for a 3-year contract with two further one year options. Following an evaluation of the 13 submissions received, the panel seeks approval of the recommendation contained in the confidential attachment.


A copy of the full tender evaluation report is attached as ATTACHMENT 1.






Tender Evaluation Report RFT 28-19 21 October 2019 - Confidential