Gladstone council’s asset value increases by $243m
THE ASSETS of Gladstone Regional Council increased by a huge $243.7 million to $2.5 billion over the past financial year the council's annual report shows.
The vast majority of these assets, 94 per cent, is property, plant and equipment, according to the annual report which was adopted unanimously at last weeks general council meeting.
The asset class property, plant and equipment accounts for $2.3 billion of the total assets and is made up of land, buildings, road network, water and sewerage infrastructure and capital works in progress.
Of these property, plant and equipment assets, 58 per cent of the total $2.3b value comes from road, drainage and transport infrastructure.
This equals $1.334 billion worth of roads, drains and transport amenities.
Sewerage infrastructure makes up 16 per cent, or $368 million of the property, plant and equipment assets.
Nine per cent or $207 million is the value of council's water infrastructure.
Council buildings are worth $138 million of the property, plant and equipment.
Land and improvements owned by council is valued at 5 per cent, or $115 million.
In the 2019-2020 financial year, council completed $44.6 million worth of capital works in the Gladstone local government area, $7.3 million less than the $51.9 million done in 2018-2019.
Council's cash and deposits totalled $113.8 million at the end of the 2019-2020 financial year.
"Other assets include inventories, prepayments, accrued revenue, investment properties, right of use assets, intangibles, investment in controlled entity and contract assets," the annual report stated.
The liabilities owing by council on Gladstone Airport reduced dramatically from $71.9 million.
"Council's investment in the Gladstone Airport Corporation was reduced from $71.9m to $16.7m following the application of an impairment adjustment to airport assets based on a valuation completed at 30 June 2020," the annual report said.
According to the Australian Accounting Standards Board, an impairment adjustment is the downward alteration of the value of an asset that has been identified as impaired.
"The objective of this standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount," the AASB standard 136 for identifying impaired assets states.
Due to the lack of traffic through Gladstone Airport due to COVID-19, it appears council has written down the value of the airport to $16.7 million, or what it accepts it would get for selling the airport.