LAND DEVELOPMENT AGENCY
Objectives
Land Development Agency’s (LDA) mission is to contribute positively to the building of thriving and vibrant communities by facilitating high quality design and built-form outcomes in its urban renewal projects and the development of greenfields, commercial and industrial land.
LDA was established under the Planning and Land Act 2002, and commenced operations on 1 July 2003, to maintain stability of supply (including supply of land to individuals), to deliver higher quality urban development and to realise a better return on the Territory’s land holdings.  
LDA delivers land for development through a number of mechanisms, including the development of its own estates, through joint ventures with the private sector and by sales of undeveloped land to the industry.  It is expected that over time LDA will undertake a greater proportion of land development activities in its own right.
LDA takes into account the social objectives of the Government, such as the need for affordable housing and housing for the aged.
2005‑06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	achieving the planned profit (subject to market conditions);
•	providing an agreed dividend to the Government;
•	commencing the first stage of LDA’s development at Franklin;
•	commencing the joint venture development of Forde;
•	progressing the Kingston Foreshore as a major redevelopment project; 
•	releasing land to contribute to affordable housing, aged care and community development initiatives;
•	implementing a predictive modelling capability for land supply and demand;
•	developing commercial and industrial land to meet market demand and government economic development priorities;
•	setting higher standards for ecological sustainable development in the residential market; and
•	building positive relationships with industry and government bodies in the delivery of financial, economic, social and environmental outcomes.

Land Development Agency	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
72		User Charges - Non ACT Government	72	72	-	72	72	72		
3  300		Interest	2  756	3  456	25	3  456	3  456	3  456		
184  007		Other Revenue	179  807	174  078	-3	174  521	183  846	187  346		
0		Resources Received free of charge	41  450	26  250	-37	19  000	26  900	16  250		
187  379		Total Revenue	224  085	203  856	-9	197  049	214  274	207  124		
		Gains								
0		Total Gains	0	0	-	0	0	0		
187  379		Total Income	224  085	203  856	-9	197  049	214  274	207  124		
		Expenses								
3  629		Employee Expenses	5  280	5  093	-4	5  309	5  318	5  318		
652		Superannuation Expenses	538	674	25	728	728	728		
9  950		Supplies and Services	11  151	9  465	-15	9  689	9  932	10  182		
372		Depreciation and Amortisation	617	308	-50	308	308	268		
108		Borrowing Costs	399	0	-100	0	0	0		
81  658		Cost of Goods Sold	77  071	78  273	2	74  036	94  053	77  001		
0		Other Expenses	10  854	5  000	-54	8  000	8  000	12  000		
96  369		Total Ordinary Expenses	105  910	98  813	-7	98  070	118  339	105  497		
1  600		Share of Operating Result from Joint Venture accounted for using the Equity Method	968	0	-100	7  000	7  000	7  000		
92  610		Operating Result	119  143	105  043	-12	105  979	102  935	108  627		

Land Development Agency	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2  115		Cash	2  001	2  001	-	2  001	2  001	2  001		
35  427		Receivables	19  152	5  606	-71	5  606	5  605	5  604		
47  135		Investments	71  266	50  094	-30	33  462	19  918	18  624		
70  118		Inventories	29  549	29  454	..	29  454	29  454	29  454		
0		Other	37  432	6  854	-82	13  000	8  000	0		
154  795		Total Current Assets	159  400	94  009	-41	83  523	64  978	55  683		
		Non Current Assets								
105  366		Inventories	72  304	90  552	25	109  442	103  290	101  540		
3  100		Property, Plant and Equipment	9  468	2  492	-74	2  184	1  876	1  608		
0		Other	6  854	5  000	-27	0	0	0		
108  466		Total Non Current Assets	88  626	98  044	11	111  626	105  166	103  148		
263  261		TOTAL ASSETS	248  026	192  053	-23	195  149	170  144	158  831		
		Current Liabilities								
1  911		Payables	1  641	1  446	-12	1  446	1  446	1  446		
463		Employee Benefits	626	588	-6	608	635	662		
0		Other Provisions	47  749	8  928	-81	13  000	8  000	0		
1  596		Other	1  723	1  673	-3	1  673	1  673	1  673		
3  970		Total Current Liabilities	51  739	12  635	-76	16  727	11  754	3  781		
		Non Current Liabilities								
1  495		Payables	0	0	-	0	0	0		
613		Employee Benefits	776	792	2	817	850	883		
0		Other Provisions	8  928	5  000	-44	0	0	0		
2  108		Total Non Current Liabilities	9  704	5  792	-40	817	850	883		
6  078		TOTAL LIABILITIES	61  443	18  427	-70	17  544	12  604	4  664		
257  183		NET ASSETS	186  583	173  626	-7	177  605	157  540	154  167		
		REPRESENTED BY FUNDS EMPLOYED								
155  205		Accumulated Funds	184  924	171  967	-7	175  946	155  881	152  508		
101  978		Reserves	1  659	1  659	-	1  659	1  659	1  659		
257  183		TOTAL FUNDS EMPLOYED	186  583	173  626	-7	177  605	157  540	154  167		

Land Development Agency	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
72		User Charges	72	72	-	72	72	72		
3  300		Interest Received	2  760	3  456	25	3  456	3  456	3  456		
178  434		Other Revenue	202  889	191  189	-6	182  094	189  944	189  268		
181  806		Operating Receipts	205  721	194  717	-5	185  622	193  472	192  796		
		Payments								
4  266		Related to Employees	5  870	5  737	-2	5  992	5  986	5  986		
9  950		Related to Supplies and Services	11  251	9  465	-16	9  689	9  932	10  182		
108		Borrowing Costs	519	0	-100	0	0	0		
87  124		Other	108  188	89  240	-18	84  573	68  098	65  922		
101  448		Operating Payments	125  828	104  442	-17	100  254	84  016	82  090		
80  358		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	79  893	90  275	13	85  368	109  456	110  706		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
4  539		Proceeds from Sale of Property, Plant & Equipment	0	6  553	#	0	0	0		
6  562		Proceeds from Sale/Maturities of Investments	4  277	0	-100	16  400	14  500	1  000		
11  101		Investing Receipts	4  277	6  553	53	16  400	14  500	1  000		
		Payments								
0		Purchase of Property, Plant and Equipment	1  225	0	-100	0	0	0		
19  250		Purchase of Investments	27  500	4  400	-84	0	0	0		
19  250		Investing Payments	28  725	4  400	-85	0	0	0		
-8  149		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-24  448	2  153	109	16  400	14  500	1  000		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
73  310		Dividends to Government	73  310	118  000	61	102  000	123  000	112  000		
6  421		Repayment of Borrowings	6  421	0	-100	0	0	0		
0		Repayment of Finance Lease	390	0	-100	0	0	0		
79  731		Financing Payments	80  121	118  000	47	102  000	123  000	112  000		
-79  731		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-80  121	-118  000	-47	-102  000	-123  000	-112  000		
-7  522		NET INCREASE/(DECREASE) IN CASH HELD	-24  676	-25  572	-4	-232	956	-294		
37  522		CASH AT BEGINNING OF REPORTING PERIOD	70  443	45  767	-35	20  195	19  963	20  919		
30  000		CASH AT THE END OF THE REPORTING PERIOD	45  767	20  195	-56	19  963	20  919	20  625		

Land Development Agency	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
302  951		Opening Balance	140  750	186  583	33	173  626	177  605	157  540		
		Accumulated Funds								
92  610		Operating Result for the Period	119  143	105  043	-12	105  979	102  935	108  627		
		Reserves								
-65  068		Increase/(Decrease) in other reserves	0	0	-	0	0	0		
27  542		Total Income And Expense For The Period	119  143	105  043	-12	105  979	102  935	108  627		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
-73  310		Dividend Approved	-73  310	-118  000	61	-102  000	-123  000	-112  000		
257  183		Closing Balance	186  583	173  626	-7	177  605	157  540	154  167		
Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement
•	interest:  the increase of $0.7m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to an expectation that the land sales program will generate higher levels of cash balances during the first half of the year.
•	other revenue:
•	the decrease of $4.2m in the 2004‑05 estimated outcome from the original budget is due to the softening of the residential market; and
•	the decrease of $5.729m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the softer residential market conditions that are expected to continue in the medium term.
•	resources received free of charge: 
•	the increase of $41.450m in the 2004‑05 estimated outcome from the original budget is due to a change in accounting policy which requires the notional value of unleased Territory land sold to be recognised as an expense at the time of sale, and a corresponding revenue (resources received free of charge) of equal value also to be recognised at the same time in order to more appropriately match expenses to revenue; and
•	the decrease of $15.2m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the lower land sales expected in 2005‑06.
•	employee and superannuation expenses:
•	the increase of $1.537m in the 2004‑05 estimated outcome from the original budget is due to employee expenses associated with the Gold Creek Country Club being included for the full financial year, due to the delay in the sale of the Club from 2004‑05 to 2005‑06; and
•	the 2005‑06 Budget is not significantly different to that of the 2004‑05 estimated outcome, because the decrease in expenses due to the sale of the Gold Creek Country Club has been off set by increase in staffing within LDA.
•	supplies and services:
•	the increase of $1.201m in the 2004‑05 estimated outcome from the original budget is because the estimated outcome includes the operations of the Gold Creek Country Club for the full financial year due to the delay in the sale of the Club from 2004‑05 to 2005‑06; and
•	the decrease of $1.686m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the exclusion of the Gold Creek Country Club as it is expected to be sold in early 2005‑06.
•	depreciation and amortisation:  
•	the increase of $0.245m in 2004‑05 estimated outcome from the original budget is due to the delay in the sale of the Gold Creek Country Club from 2004‑05 to early 2005‑06 and unanticipated capital expenditure on office accommodation for LDA; and
•	the decrease of $0.309m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the reduction in property, plant and equipment assets arising from the expected sale of Gold Creek Country Club in early 2005‑06.
•	borrowing costs: 
•	the increase of $0.291m in the 2004‑05 estimated outcome from the original budget is due to the repayments of borrowings occurring later in the financial year than anticipated; and
•	the decrease of $0.399m in the 2005‑06 Budget from the 2004‑05 estimated outcome is a result of the full repayment of LDA’s borrowings by the end of 2004‑05.
•	cost of goods sold:  
•	the decrease of $4.587m in the 2004‑05 estimated outcome from the original budget occurs mainly as a result of the sale of the large residential development site of Forde into a joint venture, which will undertake the development activities instead of LDA.  This is partially offset by a change in accounting policy which requires the notional value of unleased Territory land sold to be recognised as an expense at the time of sale; and
•	the increase of $1.202m in the 2005‑06 Budget from the 2004‑05 estimated outcome is a result of expected increases in the cost of development activities, partially offset by the reduced volume of sales because of the forecasted softer short and medium term residential market conditions.
•	
other expenses: 
•	the increase of $10.854m in the 2004‑05 estimated outcome from the original budget is due to the recognition of the expense of transferring infrastructure assets developed by private developers to the relevant Government agencies, whereas it was assumed at the time of preparing the 2004‑05 Budget that there would be no sale of development sites to private developers; and
•	the decrease of $5.854m in the 2005‑06 Budget from the estimated outcome reflects the reduced level of sale of development sites to the private sector by LDA, as land development will increasingly be undertaken by LDA.
•	share of operating result from joint venture:
•	the decrease of $0.632m in the 2004‑05 estimated outcome from the original budget arises from a higher proportion of the profit from the Kingston Stage 1A Joint Venture was recognised in 2003‑04 rather than in 2004‑05; and
•	the decrease of $0.968m in 2005‑06 Budget from the 2004‑05 estimated outcome reflects the completion of Kingston Stage 1A Joint Venture in 2004‑05.  The joint ventures commencing in 2005‑06 will generate revenue in subsequent financial years.
Balance Sheet
•	current assets:  
•	the increase of $4.605m in the 2004‑05 estimated outcome from the original  budget is the result of a number of factors: the right to receive infrastructure assets increased because of the sale of development sites to private developers was not anticipated in the 2004‑05 Budget, and investment in business undertakings increased because of the recognition of the joint venture to be established towards the end of 2004‑05 for development of Forde.  These increases are mostly offset by a decrease in receivables as sales are expected to be settled within the financial year, and a decrease in inventory because of a change in accounting policy; and
•	the decrease of $65.391m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects reduced cash balances as LDA makes dividend payments to the Territory, lower levels of receivables as land sales are settled within the financial year and reduced levels of rights to receive infrastructure assets as private sector developments are completed and infrastructure is progressively handed over to the relevant Government agencies.
•	non current assets:
•	the decrease of $19.840m in the 2004‑05 estimated outcome from the original budget is due mainly to the decrease in inventories because of change in accounting policy on valuation of unleased Territory land offset by an increase in plant and equipment arising from the delay in the sale of Gold Creek Country Club from 2004‑05 to 2005‑06; and
•	the increase of $9.418m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due mainly to the increase in inventories arising from the construction of significant infrastructure in LDA’s estates, particularly at Kingston Foreshore.
•	
current liabilities:  
•	the increase of $47.769m in the 2004‑05 estimated outcome from the original budget is mainly due to the provision for transfer of infrastructure assets developed by private developers to the relevant Government agencies, which was not anticipated at the time of preparing the 2004‑05 Budget; and
•	the decrease of $39.104m in the 2005‑06 Budget from the 2004‑05 estimated outcome  is mainly due to the reduction in provision for transfer of infrastructure assets developed by private developers to the relevant Government agencies, as these developments are progressively completed and land development is increasingly undertaken by LDA.
•	non current liabilities:  
•	the increase of $7.596m in the 2004‑05 estimated outcome from the original budget is mainly due to the provision for transfer of infrastructure assets developed by private developers to relevant Government agencies, which was not anticipated at the time of preparing the 2004‑05 Budget; and
•	the decrease of $3.912m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to the reduction in the provision for transfer of infrastructure assets developed by private developers to the relevant Government agencies, as these developments are progressively completed and land development is increasingly undertaken by LDA.