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Annual Financial Statements for year ended 30 June 2012
52
24. Equity – Reserves
Reserves
Balance
July 1
$
Transfers
To Reserve
$
Transfers
From Reserve
$
Balance
June 30
$
Other Reserves
Committed Projects
6,040,400
6,579,200
(6,040,400)
6,579,200
John Hart Reserve
109,371
27,905
0
137,276
Employee Services Reserve
500,000
0
0
500,000
Long Term Financial Plan Reserve
11,000,200
0
0
11,000,200
Open Space Development Special Fund
800,929
37,318
0
838,247
Total Other Reserves 2012
18,450,900
6,644,423
(6,040,400)
19,054,923
Total Other Reserves 2011
7,061,038
17,594,462
(6,204,600)
18,450,900
Reserves
Balance
July 1
$
Net Increments
(Decrements)
$
Transfers
(Impairments)
$
Balance
June 30
$
Asset Revaluation Reserve
Land
6,633,180
0
0
6,633,180
Buildings
82,013,484
7,489,229
0
89,502,713
Infrastructure
304,080,724
38,739,022
0
342,819,746
Library Bookstock
2,419,806
0
0
2,419,806
Total Asset Revaluation Reserve 2012
395,147,194
46,228,251
0
441,375,445
Total Asset Revaluation Reserve 2011
(Revised)
326,958,350
68,188,844
0
395,147,194
Purpose of Reserves
Council has considered it prudent to set aside a part of its accumulated surplus as reserve funds to meet specific future
commitments. Historically, with the exception of the Asset Revaluation Reserve, all reserves have been cash backed.
The Council has documented its financial sustainability by preparing ten year Infrastructure & Asset Management Plans,
a Long Term Financial Plan and a Treasury Management Policy. In accordance with these documents Council manages
its finances holistically to meet its financial sustainability strategies and targets. As a result, Council does not generally
retain separate funds for particular future purposes unless required by legislation or agreement with other parties.
In line with this policy the following reserves, with the exception of the Asset Revaluation Reserve, are cash backed as
at 30 June 2012:
• Committed Projects Reserve
– the Committed Projects Reserve has been established to provide funds for the
completion of capital and other material projects carried over from one financial year to the next.
• John Hart Reserve
– the John Hart Reserve receives under an agreement, contributions from the Port Adelaide
District Hockey Club Inc. to fund the future replacement of the synthetic hockey pitch located on the John Hart
Reserve, Swan Terrace, Ethelton. Interest accrues throughout the year on the balance of the reserve. The pitch is
scheduled for replacements during 2012-2013 financial year.
• Employee Services Reserve
– the Employee Services Reserve has been established to fund employee entitlements
including long service leave, productivity and parenting leave not provided for in working capital.
• Long Term Financial Plan Reserve
– The Long Term Financial Plan Reserve has been established to assist with
funding of initiatives not already identified in Council’s current Annual Budget and Long Term Financial Plan. On
20 December 2011 Council resolved that $5.0m of the Reserve be committed in principal to the construction and
maintenance of a new library, regional Council office and senior citizens hall at the Parks Community Centre
subject to the appropriate exchange of land parcels with the State Government.On 14 August 2012 Council
resolved that $3.6m of the Reserve be committed in principal to the Port Adelaide Renewal Projects on condition
that the State Government commits to the balance of the Project and that the State Government undertakes and
manages the projects.
• Open Space Development Special Fund
– the Open Space Development Special Fund as required under section
50 of the Development Act 1993, receives contributions from Developers in lieu of the provision of open space as
part of land sub-divisions. As required under the act. The funds will be applied by the Council for the purpose of
acquiring or developing land as open space as appropriate opportunities arise. Interest accrues throughout the year
on the balance of the reserve.
• Asset Revaluation Reserve
– is used to record increments and decrements arising from changes in fair value of non
current assets.
Notes to the Financial Statements