Annual report 2018/19...6 On behalf of Council, it gives me great pleasure to present the City of...
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Annual report 2018/19
Transcript of Annual report 2018/19...6 On behalf of Council, it gives me great pleasure to present the City of...
Annual report 2018/19
SWAN R IVER ,V IVEASH
CONTENTSOUR VISION 3
OUR CITY 4
STRATEGIC COMMUNITY PLAN 5
STRATEGIC COMMUNITY PLAN EMERGING THEMES 5
CORPORATE BUSINESS PLAN 5
MESSAGE FROM THE MAYOR 6
ELECTED REPRESENTATIVES 8
COUNCIL MEETING ATTENDANCE 10
MESSAGE FROM THE CEO 13
ORGANISATIONAL STRUCTURE 14
FIVE YEAR KEY SUMMARY OF STATISTICS 15
PROGRESSIVE CUSTOMER SERVICE 16
FREEDOM OF INFORMATION 17
RECORD KEEPING 17
GRANTS AND SPONSORSHIPS 18
LONG TERM FINANCIAL PLAN 19
DEVELOPER CONTRIBUTION PLANS 20
MEASURING OUR PROGRESS 21
ECONOMIC 22
NATURAL ENVIRONMENT 28
BUILT ENVIRONMENT 33
SOCIAL 38
GOVERNANCE 46
CORPORATE MEASURES 50
FINANCIAL OVERVIEW 52
2 City of Swan
SWAN VALLEY,UPPER SWAN
ACKNOWLEDGEMENT OF COUNTRY
The City of Swan would like to acknowledge the traditional custodians of this region, the Whadjuk people of the Noongar Nation, and pay respect to their elders past, present and emerging in the hope that we can continue to work together in the spirit of reconciliation.
OUR VISION
O N E CIT Y, DIVERS E PL ACES
Our City reflects the diversity of our people, our industry, environment and our heritage, providing a unique place where people want to live, work and recreate.
Our City is a place for all people, having access to local and central services and employment that meets changing community needs and growth, while being affordable, innovative and celebrating and protecting our rich history, heritage and culture.
Our City is a significant and thriving economic region, contributing to the growth and wealth of our communities and the State.
4 City of Swan
Our City is growing. With an estimated population of 149,195, our annual population growth is forecast to grow to 309,788 by 2051. City boundaries extend from Bullsbrook in the north, Bushmead in the south, Ballajura in the west and Gidgegannup in the east.
Midland is the Strategic Metropolitan Centre in Perth’s north east sub-region and its CBD area is undergoing significant revitalisation and change. The City is progressing the transformational New Junction project in the heart of Midland, which will deliver a range of housing, business and retail opportunities.
In 2018/19, New Junction transitioned from planning to construction, with the first stage of Midland Park, the precinct’s major public open space, now well underway. The development is opening the door to a new future for Midland’s CBD by generating jobs and attracting strong investment to the City and State economies.
The City of Swan is immensely proud of its rich history. This year, Guildford Historic Town was officially heritage listed. It was the first place added to the State Register of Heritage Places under the new Heritage Act 2018.
Tourism continues to drive economic and social benefits. The Swan Valley Visitor Centre was named best in Australia for the second year running, and the signature Swan Valley Unearthed event in Singapore showcased the region’s food, wine and experiences to the Singapore travel trade industry and media.
Key events were also recognised for their achievements. Entwined in the Valley won Best Destination Marketing Campaign at the 2018 WA Tourism Awards, and the Rebel Women’s Big Bash League series was nominated for Community Event of the Year at the 2018 WA Sport and Recreation Industry Awards.
The City also undertook an innovative recycling education program, which saw recycling rates improve by 53 per cent in some areas after the City conducted a bin ‘health check’ across 2,000 households and businesses.
Work started on the City’s Reconciliation Action Plan and in early 2019 we invited community members to take part in the process.
Live streaming was introduced to Council Meetings and Agenda Forums to better engage with the community and make decisions and debate easier to access.
It’s an exciting time to be part of our great City and we are dedicated to delivering high quality services and projects that meet the needs of our growing community.
This year’s advocacy efforts achieved significant, positive outcomes for the community including funding commitments for the Lloyd Street Bridge, Ellenbrook Aquatic and Leisure Centre and Stock Road projects.
The renovated Beechboro Community Hub and Hazelmere Hall both opened, and we rebranded our leisure centres to improve the overall customer experience.
It’s an exciting time to be part of our great City and we are dedicated to delivering high quality services and projects that meet the needs of our growing community.
O U R CIT Y
Encompassing a unique blend of rural, residential, commercial and industrial land, the City of Swan is the largest local government in the Perth metropolitan area.
Annual Report 2018/19 5
STR ATEG IC CO M M U N IT Y PL A N
Our highest level plan, the City’s Strategic Community Plan (SCP) sets out the vision, aspirations and objectives for the City of Swan community over a 10 year period. The SCP was developed through extensive research and community consultation.
The SCP undergoes a major review every four years in consultation with members from the community, with the next major review to be completed before the end of the 2020 calendar year.
Council also sets strategic priorities for the medium term to focus the organisation over the four-year period. This drives the development of the City’s Corporate Business Plan.
STR ATEG IC CO M M U N IT Y PL A N EM ERG IN G TH EM ES
PL ACED BASED We are committed to building and supporting our diverse places, providing access to services close to our communities of interest through local, vibrant community hubs.
PARTNERSHIPSWe aim to work in collaboration with government, the private sector, not-for-profit agencies and community to provide inclusive and accessible services and assets in the most efficient way.
SUSTAINABLE GROWTHWe are committed to economic growth and diversity, balanced with natural environment and heritage, to ensure the City provides local services, industry access, local employment and diverse places to live.
CO R P O R ATE B US IN ES S PL A N
The City’s Corporate Business Plan (CBP) translates the aspirations of the SCP into concrete operational priorities and indicates how they will be resourced over a four year period.
The CBP articulates how the SCP objectives are to be delivered through all service delivery, capital works, strategic priorities and projects. Each of the City’s 19 Business Units also have annual business plans that inform the CBP.
The CBP and all Business Unit plans are reviewed annually to ensure the City remains adaptive and responsive to the changing external environment and community needs.
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On behalf of Council, it gives me great pleasure to present the City of Swan’s Annual Report for 2018/19.
As we come to the end of another year, I reflect on everything we have achieved, both as an organisation and a community.
I see a community that is stronger and more prosperous than it was a year ago. I feel proud to be part of this active and growing community, and immense privilege to lead an organisation of people who work so hard to improve the lives of others.
We continue to achieve excellence through the many different services we provide to our 149,195 residents. Whether it’s supporting aged people, or those living with dementia or disabilities to maintain independence and improve quality of life, building roads to help people return safely home to their families every day, or carefully managing the City’s assets and making sure our ratepayers receive value for money.
It has been a pleasure working alongside our Administration, Council and community to innovate, improve and empower our region, and I’m confident we’ll build on the progress we’ve made in the years to come.
MESSAGE FROM THE MAYOR
C R K E V I N B A I L E YM a y o r , C i t y o f S w a n
A STRO N G & PROS PERO US CO M M U NIT Y
STOKED FEST IVAL ,MIDLAND
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CAVERSHAM
WEST SWAN
BRABHAMHERNE HILL
MIDDLESWAN
RED HILL
BALLAJURA
MALAGA
HAZELMERE
BUSHMEAD
WOODBRIDGE
STRATTON
MIDVALE
JANE BROOK
SWAN VIEWVIVEASH
MIDLAND
BELLEVUE
KOONGAMIA
WHITEMAN
BEECHBORO
HENLEYBROOK
BASKERVILLE
BRIGADOON
MILLENDON
UPPER SWAN
LEXIA
SOUTH GUILDFORD
GUILDFORD
BELHUS
CULLACABARDEE
KIARA
PERTHAIRPORT
AVELEY
ELLENBROOK
DAYTON
BULLSBROOK
MELALEUCA
GIDGEGANNUP
WALYUNGA NATIONAL
PARK
THEVINES
AVON VALLEYNATIONAL PARK
LOCKRIDGE
BENNETT SPRINGS
AIRPORTPERTH CBD
ALTONE WARD
WHITEMAN WARD
PEARCE WARD
MIDLAND/GUILDFORD WARD
SWAN VALLEY/GIDGEGANNUP WARD
MIDLAND/GUILDFORD WARD
Cr Ian JohnsonTERM EXPIRES OCTOBER 2023
Cr Claire ScanlanTERM EXPIRES OCTOBER 2021
Cr Rashelle PredovnikTERM EXPIRES OCTOBER 2023
Cr Mark ElliottTERM EXPIRED OCTOBER 2019
WHITEMAN WARD
Cr John McNamaraTERM EXPIRES OCTOBER 2021
Cr Bryce ParryTERM EXPIRES OCTOBER 2023
Cr Maria Haynes JPTERM EXPIRED OCTOBER 2019
Cr Mel CongertonTERM EXPIRES OCTOBER 2023
Cr Adam KovalevsTERM EXPIRED OCTOBER 2019
SWAN VALLEY/GIDGEGANNUP WARD
Cr Rod HendersonTERM EXPIRES OCTOBER 2023
Cr Charlie ZanninoTERM EXPIRES OCTOBER 2021
ELECTED REPRES ENTATIV ES
Council is responsible for setting the strategic direction, which the City’s Administration implements.
ALTONE WARD
Cr David LucasTERM EXPIRES OCTOBER 2023
Cr Andrew KielyTERM EXPIRES OCTOBER 2021
Cr Peter Lyndon-JamesRESIGNED DECEMBER 2018
Cr Jennifer CatalanoELECTED APRIL 2019 TERM EXPIRES OCTOBER 2021
PEARCE WARD
Cr Cate McCulloughTERM EXPIRES OCTOBER 2023
Cr David McDonnellTERM EXPIRED OCTOBER 2019
Cr Patty JonesTERM EXPIRES OCTOBER 2021
Cr Tanya RichardsonTERM EXPIRES OCTOBER 2023
Cr Kevin BaileyTERM EXPIRES OCTOBER 2021
MAYOR
DEPUTY MAYOR
Annual Report 2018/19 9
CAVERSHAM
WEST SWAN
BRABHAMHERNE HILL
MIDDLESWAN
RED HILL
BALLAJURA
MALAGA
HAZELMERE
BUSHMEAD
WOODBRIDGE
STRATTON
MIDVALE
JANE BROOK
SWAN VIEWVIVEASH
MIDLAND
BELLEVUE
KOONGAMIA
WHITEMAN
BEECHBORO
HENLEYBROOK
BASKERVILLE
BRIGADOON
MILLENDON
UPPER SWAN
LEXIA
SOUTH GUILDFORD
GUILDFORD
BELHUS
CULLACABARDEE
KIARA
PERTHAIRPORT
AVELEY
ELLENBROOK
DAYTON
BULLSBROOK
MELALEUCA
GIDGEGANNUP
WALYUNGA NATIONAL
PARK
THEVINES
AVON VALLEYNATIONAL PARK
LOCKRIDGE
BENNETT SPRINGS
AIRPORTPERTH CBD
ALTONE WARD
WHITEMAN WARD
PEARCE WARD
MIDLAND/GUILDFORD WARD
SWAN VALLEY/GIDGEGANNUP WARD
WARDS AND REPRESENTATIONEach of the City’s 15 elected members, including the Mayor and Deputy Mayor, represents one of the City’s five wards, but governs for the entire City. The elected representatives work together to provide good governance by making decisions on all aspects of community, social, environmental and economic wellbeing. Members of the Council can be contacted by the public to discuss any local issue, by calling them on their listed phone number or by email. The email address format is [email protected]
An Extraordinary Election was held in the Altone Ward on April 11, 2019, following the resignation of former Councillor Peter Lyndon-James in December 2018. There were four candidates and more than 31% of constituents voted. Jennifer Catalano was elected to the position, with her term running until October 16, 2021.
Local Government Elections were also held on October 19, 2019. There were 24 candidates nominated for eight vacancies across all City wards. Four sitting Councillors were returned and four new Councillors were elected. At a Special Meeting of Council held on October 21, 2019, Cr Kevin Bailey was elected by the Council as Mayor and Cr David Lucas as Deputy Mayor.
COUNCILLOR OCM HELDOCM
ATTENDED SCM HELDSCM
ATTENDED
AGENDA FORUMS
HELD
AGENDA FORUMS
ATTENDEDBRIEFINGS
HELDBRIEFINGS ATTENDED
Cr Bailey 14 13 3 3 13 12 20 19
Cr Catalano 2.5* 2.5* 1 1 3 3 4 4
Cr Elliott 14 8.5* 3 2 13 7 20 13
Cr Haynes 14 14 3 2 13 12 20 16
Cr Henderson 14 13 3 1 13 12 20 17
Cr Johnson 14 14 3 3 13 12 20 20
Cr Jones 14 13 3 2 13 10 20 16
Cr Kiely 14 13 3 2 13 12 20 15
Cr Kovalevs 14 11.5* 3 2 13 12 20 14
Cr Lucas 14 12 3 3 13 10 20 18
Cr Lyndon-James 8 6 1 1 6 3 10 8
Cr McCullough 14 13 3 3 13 13 20 18
Cr McNamara 14 11 3 3 13 10 20 15
Cr McDonnell 14 10 3 1 13 10 20 11
Cr Scanlan 14 13.5* 3 2 13 12 20 15
Cr Zannino 14 13 3 2 13 12 20 18
*Meeting adjourned and held over two nights OCM = Ordinary Council Meeting SCM = Special Council Meeting
CO U N CIL M EE TIN G AT TEN DA N C E
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STOKED FEST IVAL ,MIDLAND
With our population expected to more than double in the next 30 years, we look to the future to ensure we are providing housing options and vital infrastructure for our growing and diverse population.
SWAN R IVER ,CAVERSHAM
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Local government is often seen as the level of government closest to our communities. This is because we deliver key services and projects that are close to home.
For the City of Swan, this includes building and maintaining your local roads and parks, managing your weekly waste collection, running six libraries, three leisure centres, coordinating social programs and planning for Western Australia’s largest metropolitan local government authority by land area.
With a rapidly growing population and a region that covers 1,043km2, this is no small task.
We pride ourselves on delivering these essential services, and also provide community leadership by creating vibrant and sustainable communities.
We are proud of the green, rural nature of our region, blessed with many natural assets, including high value natural lands, open spaces, the Swan River, wetlands and waterways. In the past year, we have maintained and protected this through a robust natural environmental maintenance and conservation program, with the invaluable support of our passionate volunteers. This includes 17,927 seedlings planted by our Friends Groups across our many reserves.
Infrastructure and services are also at the core of our planning for the decades ahead. With our population expected to more than double in the next 30 years, we look to the future to ensure we are providing housing options and vital infrastructure for our growing and diverse population.
Our journey throughout 2018/19 speaks to our commitment to create and deliver outstanding community service, including in unforeseen circumstances, challenging us and inviting our creativity to innovate and solve.
I would like to extend my sincere thanks to my Executive team and all City staff for their ongoing hard work, diligence and commitment to making the City of Swan the very best it can be. I also thank our Council for their leadership and dedication, both to the City and our community.
MESSAGE FROM THE CEO
A CIT Y FO R A R APID LY G ROWIN G P O PU L ATIO N
M I K E F O L E YC h i e f E x e c u t i v e O f f i c e r
O RG A N ISATIO N A L STRU CT U RE
C H I E F E X E C U T I V E O F F I C E R
MIKE FOLEY
Governance and Strategy
C O M M U N I T Y W E L L B E I N G
MARK B ISHOP EXECUTIVE MANAGER
Community Safety
Customer and Library Services
Leisure Services
Lifespan Services
S TA K E H O L D E R R E L AT I O N S
KYM LEAHY EXECUTIVE MANAGER
Financial Services and Rates
Human Resources
Information Services
Marketing and Public Relations
Place Management
O P E R AT I O N S
J IM COTEN EXECUTIVE MANAGER
Asset Management
Construction and Maintenance
Facilities Management
Fleet and Waste Services
Project Management
P L A N N I N G & D E V E LO P M E N T
STEVEN TANEXECUTIVE MANAGER
Business and Tourism Services
Health and Building Services
Statutory Planning
Strategic Planning
Annual Report 2018/19 15
2014/15 2015/16 2016/17 2017/18 2018/19
Total number of residents 128,256 132,220 136,676 143,374 149,195#
Total number of rateable properties 54,032 55,706 57,645 59,382 61,030
Minimum general residential rate $845 $845 $845 $865 $880
Rates levied (excluding refuse) $99.2m $105.9m $112.4m $118.1m $122.9m
Operating revenue $157.8m $164.7m $178.5m $183.4m $191.4m
Total current assets $130m $143.9m $158.8m $180.9m $214.7m
Capital grants revenue $11.7m $18.1m $12.9m $16.6m $8.7m
Operating grants revenue $13m $7.9m $13.4m $10.4m $10.8m
Full time equivalent staff 629 673 679 693 697
Planning applications received 1,070 1,126 1,046 1,007 895
Aged/disabled people assisted 1,219 1,102 1,100 1,054 906
Building applications received 4,999 3,905 3,259 3,112 2768*
Licensed animals registered 9,703 10,116 10,842 8,657 8,035**
Waste services provided (weekly) 52,154 55,391 58,178 61,290 62,891
Recycling services provided (fortnightly) 48,490 51,752 54,594 57,788 59,526
Swan Active Midland attendance 420,206 427,093 416,938 385,915 393,021
Swan Active Beechboro attendance 321,361 345,190 348,084 335,455 384,719
Swan Active Ballajura attendance 128,209 139,103 137,284 127,906 95,872^
Active registered library borrowers 70,451 72,502 73,574 79,381 81,527
Library loans of books and other items 562,361 688,456+ 665,443+ 607,056+ 554,014+
Customer service calls received 136,010 150,878 118,567 99,993 85,062
* Building Application figures are based on latest available data and as such may be different to those reported on previous occasions.** Decrease due to life time registrations.^ Swan Active Ballajura was closed April – June 2019 for renovation works.Note: Formerly known as Altone Park Leisure Centre, Ballajura Aquatic Centre and Swan Park Leisure Centre, our facilities now operate under one Swan Active banner. + Figures include renewals, loans, eLoans and Gidgegannup branch. # Forecast figure only.
FIV E Y E A R KE Y S U M M A RY O F STATISTIC S
16 City of Swan
PRO G RES SIV E CUSTO M ER S ERVIC E
You may have noticed our customer service calls have steadily dropped over the past five years.
This is because the City is focused on providing other customer service options to make sure our customers can access information at a time that suits them.
This includes making services and payments available online, improving our website and providing comprehensive service at our public libraries. In 2018/19, we implemented online bookings for verge collections, and launched our eLodge service to enable building applications to be submitted online and track their progress.
EM PLOY EE REM U N ER ATIO N SA L A RY R A N G ESalary range $ 2018/19
100,000-109,999 40
110,000-119,999 15
120,000-129,999 5
130,000-139,999 8
140,000-149,999 5
150,000-159,999 2
160,000-169,999 4
170,000-179,999 2
210,000-219,999 4
290,000-299,999 1
Annual Report 2018/19 17
FREED O M O F IN FO R M ATIO NMeasure 2018/19
FOI applications processed 54
Average application processing time^ 15 days
Requests for non-personal information 52
Requests for access to personal information 2
Amendments of personal information 0
Documents provided with edited access 41
Applications declined access* 5
Fees and charges collected $2,066.75
^The Freedom of Information Act 1992 requires applications to be processed within 45 calendar days.
*In accordance with Section 26 of State Records Act 2000.
The City also reviewed and updated its Information Statement in accordance with the requirements of Act.
RECO RD KEEPIN G
Records are a core information resource and sound recordkeeping practices contribute to the overall effectiveness and efficiency of the City.
The City’s Recordkeeping Plan was approved by the State Records Commission in 2017, and in accordance with the State Records Act 2000, a further review of the plan will be completed in 2022.
TR AININGThe City provides an induction program to all new staff, which includes an online recordkeeping course. 77 staff were enrolled in the online record keeping module in 2018/19.
The City also conducts regular recordkeeping system training for staff. 127 staff completed the training in 2018/19. Regular updates and reminders on record keeping requirements are also provided.
A review of the efficiency and effectiveness of the City’s recordkeeping training program was also undertaken. Based on the review, the program is working well, particularly with the upgrade of the City’s electronic document and records management system.
18 City of Swan
G R A NTS A N D S P O N SO RS H IP
OUTGOING GR ANTS$355k was allocated to 18 community groups and 279 individuals under the Swan Community Funding Scheme (SCFS) and subsidies program. The allocations were:
• $35,750 in cash donations to support 141 students aged 25 years or below with individual endeavours in competitive activities including sport, scholastic, culture and the arts
• $17,840 through the Access All Areas program to 138 individuals for subsidised access to life skills, cultural and recreational activities
• $2,250 in non-cash donations to five community groups which covered venue hire and provision of rubbish bins for community activities and events
• $18,070 in event sponsorship to four community events, including:
– $3,500 for the 2019 Keuring Inspection/Dutch Day, hosted by the Australian Friesian Horse Society
– $5,000 for the Gidgegannup Small Farm Field Day, hosted by Experience Gidgegannup Inc
– $5,000 for Guildford Songfest, hosted by the Guildford Association Inc
– $4,570 for the Over 55’s Community Expo, hosted by the Rotary Club of Swan Valley Inc
• $21,000 in community grants for three community projects:
– $15,000 towards the Suburban Feast Series, delivered by Mercy Community Services
– $5,000 towards the Yokayi Art Project: Empowering Kiara’s Aboriginal and Torres Strait Islander Girls, delivered by the Girls Academy
– $1,000 towards the restoration of a wildlife corridor between Blue Wren Reserve and Susannah Lakes, delivered by the Susannah Brook Catchment Group Inc
• $44,580 Proactive Grants to support two innovative community programs:
– $24,580 for the Community Connect project, delivered by Indigo Junction
• $20,000 for the Youth Pro-Active Project, delivered by the South Sudan Community Association of WA
• $215,220 was also provided toward sporting club and seniors subsidies for four groups
In addition to the SCFS and subsidies program, a further $226k was provided to a range of community groups, to support projects and initiatives that aligned with the City’s Strategic Community Plan.
KIDSPORTA further $256k was provided under Kidsport, a state wide initiative funded by the Department of Local Government, Sport and Cultural Industries.
The City approved 1,796 individual KidSport vouchers, which enabled eligible children living in the City to participate in community sport and recreation.
INCOMING GR ANTSThe City was awarded grant funding from Federal and State Government agencies to assist with the delivery of important infrastructure projects as well as community programs. These included:
• $14.8 million from the Department of Infrastructure, Regional Development and Cities towards the construction of the Stock Road Extension, Bullsbrook
• $6 million through the Federal Government’s Financial Assistance Grants program
• $5 million from the Department of the Premier and Cabinet towards the construction of the Brockman Community Centre
Annual Report 2018/19 19
• $5 million from State and Federal Government agencies for road related works
• $3.3 million from the Commonwealth and State Department of Health for the Commonwealth Home Support program, the Home Care Package program and the Home and Community Care program
• $1.7 million from the Department of Fire and Emergency Services for support under the Local Government Grants Scheme ($368k operating allocation to the Bush Fire Brigades and State Emergency Services, $1.3 million capital allocation to the West Gidgegannup Bush Fire Brigade and $78k to the Swan State Emergency Services)
• $350k from the Department of Local Government, Sport and Cultural Industries towards the construction of change rooms at Lilac Hill
• $120k from Healthway towards 2019/2022 Hyper Series, which includes HyperFest, Hyper Miniseries and HyperVision
• $91k from the Department of Transport for the construction of traffic calming devices along Meadowview Drive in Ballajura and Losino Boulevard in Henley Brook
• $49k from the Department of Communities towards the Swan Volunteer Resource Centre
• $37k from the Department of Biodiversity, Conservation and Attractions towards the coordination of community led projects in the north-sub region
• $25k from the Department of Local Government, Sport and Cultural Industries towards the Swan Sustainable Club Development program
• $12k from the Good Things Foundation towards implementing ‘Be Connected,’ a digital literacy initiative for seniors
• $7k from the Department of Industry, Innovation and Science towards the purchase of new equipment for the Ellenbrook Sports Hub
LO N G TER M FIN A N CIA L PL A N
The City is committed to delivering services and infrastructure to our existing and new suburbs with effective governance.
The Long Term Financial Plan (LTFP) is an integral part of Council’s strategic planning process and presents a financial analysis of all strategic objectives and goals over a ten year period. The LTFP assists the City in aligning priorities with its financial resources and allows Council to make current and future decisions for the community that are financially sustainable.
The LTFP is a key element of the Integrated Planning and Reporting Framework and is aligned with the Corporate Business Plan (2018/19) and the Strategic Community Plan (2017 to 2027). Council approved and endorsed the LTFP for the period 2019/20 – 2028/29 and are confident that the services and assets required by the community over the next 10 years have been addressed.
20 City of Swan
D E V ELO PER CO NTRIB U TIO N PL A N S
Developer Contribution Plans (DCPs) are legislated under the State Planning Policy 3.6 and provide an equitable system for charging development contributions across Development Contribution Areas (DCAs).
DCPs are legal arrangements between the City and landowners to share the cost of identified infrastructure within DCAs. This is vital to meet the future needs of communities in new and established urban areas. Contributions made by developers are usually in kind by way of land, infrastructure or payments toward the provision of infrastructure. To date there are four gazetted DCPs: Brabham (Albion); Dayton (West Swan East); Caversham and Ellenbrook Bridge. The City has been working on three additional DCPs, namely West Swan West (Bennett Springs), Bullsbrook Residential and South Bullsbrook Industrial.
AVON DESCENT,L ILAC H ILL , GUILDFORD
M E A S U RIN G O U R PRO G RES S
To ensure the City delivers on the commitments made to our community, we track our performance across all levels of the organisation.
Strategic Community Plan (SCP) objectives are set in consultation with our community and Council. These objectives form the top layer of our measurement framework and demonstrate how our activities contribute to community outcomes.
Corporate Measures are designed to identify our organisational health and how well placed we are to support the delivery of the SCP objectives.
By measuring our progress we can better understand, manage and improve performance, productivity and accountability. The following information illustrates our performance over the five key result areas in the SCP.
STOKED FEST IVAL ,MIDLAND
22 City of Swan
ECO N O MIC
OUR VISION
The City of Swan will be nationally and globally recognised as a great place and strategic location to invest, visit and
establish commercial and local business centres.
E 1 O U T C O M E – S U S TA I N A B L E B U S I N E S S G R O W T H
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
E1.1 Actively support and develop local and new business
E1.1.1 Lobby for the technological infrastructure necessary to support commercial and business growth
E1.1.2 Create business and community partnership
E1.1.3 Review and align land use and infrastructure plans
Satisfaction with business support services offered by the City
45.3%* 44.1**
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
E 2 O U T C O M E – A C C E L E R AT E D E C O N O M I C G R O W T H
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
E2.1 Attract business and investment opportunities
E2.1.1 Identify extent and type of industry growth in all economic and commercial centres throughout the City of Swan and address our economic vulnerability
E2.1.2 Facilitate future industrial development
E2.1.3 Target and attract emerging growth sectors to capitalise on local economy and employment
E2.1.4 Strengthen Midland as the ‘strategic metropolitan centre’ ensuring community needs are met
Number of and $ spend for major new development investments
There were 15 approved JDAP applications in 2017/18 with a total value of $171,160,869
There were 11 approved JDAP applications in 2018/19 with a total value of $101,628,475
Annual Report 2018/19 23
E 3 O U T C O M E - A G R E AT P L A C E T O V I S I T
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
E3.1 Strengthen the capacity and integration of the tourism industry
E3.1.1 Develop partnerships to actively support visitor growth
E3.1.2 Leverage our environmental, built, heritage and social assets in the promotion of tourism
Share of Perth visitors Research not conducted in 2017/18
4%*
Satisfaction with tourism information and services provided by the City
73.5%** 79.9%***
*Source: Destination Perth 2018 Fact Sheet. Note the figure is based on the average from calendar years 2016, 2017 and 2018.** Source: Community and Business Perceptions Survey 2018*** Source: Community and Business Perceptions Survey 2019
A D D I T I O N A L M E A S U R E S – N U M B E R O F P E O P L E E M P L O Y E D P E R I N D U S T R Y T Y P E *
Industry Sector Year ending 30 June 2016
Year ending 30 June 2017
Change 2016 to 2017
Year ending 30 June 2018
Change 2017 to 2018
Agriculture, forestry and fishing 1,019 1,104 85 1,223 119
Mining 2,554 2,605 51 2,388 -217
Manufacturing 7,769 7,091 -678 6,870 -221
Electricity, gas, water and waste services 645 616 -29 663 47
Construction 7,216 7,485 269 7,736 251
Wholesale trade 3,628 3,363 -265 3,209 -154
Retail trade 7,720 7,313 -407 7,360 47
Accommodation and food services 4,227 4,077 -150 4,395 318
Transport, postal and warehousing 4,463 4,473 10 4,503 30
Information media and telecommunications 720 766 46 802 36
Financial and insurance services 799 790 -9 829 39
Rental, hiring and real estate services 1,017 939 -78 939 0
Professional, scientific and technical services 2,687 2,487 -200 2,564 77
Administrative and support services 2,047 2,114 67 2,197 83
Public administration and safety 5,034 5,007 -27 5,252 245
Education and training 5,136 5,042 -94 5,570 528
Health care and social assistance 6,153 6,234 81 6,468 234
Arts and recreation services 804 754 -50 831 77
Other services 4,214 3,971 -243 4,014 43
Total employed 67,853 66,231 -1,622 67,814 1,583
* Source: Economy.id – data not yet available for year ending 30 June 2019
MIDLAND JUNCTION ARTS CENTRE ,MIDLAND
24 City of Swan
Measure 2016/17 2017/18 2018/19
Unemployment rate* 6.9% (March quarter, 2017) 7.0% (March quarter, 2018) 7.8% (March quarter, 2019)
Employment self-sufficiency* 0.94 0.91 Data not yet available
Household disposable income* $125,458 $127,600 Data not yet available
Annual Gross Regional Product* (compared to Greater Perth and Western Australia)
Swan: $9,321m Greater Perth: $157,803mWA: $235,005m
Swan: $9,954m Greater Perth: $169,103mWA: $244,693m
Data not yet available
Number of visitors to the Swan Valley Research not conducted in 2016/17
Research not conducted in 2017/18
5,428,000 intrastate visitors**
* Source: Economy.id ** Source: 2019 Swan Valley Day Tripper Visitor Research
S U PP O RTIN G TH E TO U RIS M ECO N O M Y
According to the annual Community Perceptions survey, there has been a continued increase in satisfaction with the City’s provision of tourism information.
Guided by the Tourism Development Strategy 2015-2020, the City is working towards growing the visitor economy by lifting awareness and preference for the Swan Valley.
Tourism benefits include the opportunity to generate additional visitor expenditure, support employment and attract investment.
ENTWINED IN THE VALLEY
Celebrating everything Swan Valley, this home grown event won Best Destination Marketing Campaign at the 2018 WA Tourism Awards.
Held over a long weekend in October, Entwined in the Valley is a series of events across the Swan Valley region, flourishing with food, wine, art, culture, music and comedy.
SWAN VALLE Y VISITOR CENTRE NAMED BEST IN AUSTR ALIA SECOND YE AR RUNNING
The Swan Valley Visitor Centre (SVVC) took home gold at the 2018 Qantas Australian Tourism Awards on March 1, 2019.
It marks the second year in a row the SVVC has won the top national award, also winning its category at the Perth Airport WA Tourism Awards for 2017 and 2018.
79.9% I N 2019
68.4% I N 2017
73.5% I N 2018
SWAN VALLE Y UNE ARTHED IN SINGAPORE
The City of Swan brought the Swan Valley to Singapore in a bid to attract more overseas visitors to the growing food and wine region.
Representatives from the local tourism industry took part in the signature Swan Valley Unearthed event in Singapore in April 2019, which was designed to showcase the region’s food, wine and experiences to the Singapore travel trade industry and media.
The event was also supported by a significant consumer marketing campaign to drive visitation, supported by Destination Perth.
The event complemented the release of five new Swan Valley food and wine trails: Fresh Seasonal Produce, Fine Wine, Wine and Art off the Beaten Track, Kids in the Valley, and Bushtucker and Beyond.
Representatives of the food and wine trails also attended to provide a produce tasting experience, including bush tucker preserves, wine, cider, chocolate, nuts, nougat and honey. The trails were delivered with State Government support under the State for the Valley tourism marketing fund.
SWAN VALLEY,UPPER SWAN
26 City of Swan
JULY 2018
Landmark first stage of works - extension of The Avenue gets underway.
JUNE - AUGUST 2018
Survey undertaken on Midland Oval Redevelopment Masterplan Business Plan.
An extended 12-week public advertising period saw the community invited to review the business plan, outlining plans for major land transactions in New Junction.
Residents and ratepayers were offered the opportunity to comment on the City’s involvement in land transactions for the development, with a survey asking them whether they supported or objected to the City acquiring and selling land to the private sector.
SEPTEMBER 2018
Public consultation on designs for Midland Park Stage 1.
Business Plan approved by Council
The survey results were positive with almost two thirds of respondents saying they supported the plan.
The City received more than 8,000 responses to the survey, with 65 per cent registering their support for the business plan.
N E W J U N C T I O N P R OJ EC T M OV E S FO RWA R D
The New Junction project graduated from planning to construction, with major milestones reached in 2018/19.
Annual Report 2018/19 27
OCTOBER 2018
The approval of the Midland Oval Redevelopment Precinct Business Plan formally cleared the way to begin marketing New Junction to the private sector.
NOVEMBER 2018
Green light for New Junction’s first open space
Council approved the landscape design for the first stage of the new public open space.
The area will include a kick-about lawn and terraced seating, recreational areas for children and teens, groves of trees and special recognition of Midland’s history and heritage through public art and interpretive elements.
Features for the youth area include rock climbing, a tennis practice wall and a basketball half-court.
JUNE 2019
A smoking ceremony and tree planting marked the beginning of construction works at New Junction’s first stage of public open space.
Native white gum trees were planted at the site, to provide habitats for birds and other local fauna, while delivering shade and shelter for the local community.
Jeremy Garlett, Traditional Owner, led a smoking ceremony by burning white gum leaves and sandalwood to ward off bad spirits and cleanse the site.
The City accepted a $1 million contribution from the Stefanelli family towards a new children’s playground in the precinct. The outdoor youth space and children’s play area will also be supported by a $1.3 million Lotterywest grant in 2019/20.
• New Junction is an 11ha precinct that will deliver a diverse new range of housing, business and retail opportunities together with outstanding new public and community spaces for all to enjoy
• Will bring an estimated $680 million in construction investment to Midland and see the creation of an estimated 4,000 jobs
• It will deliver total economic benefits of some $990 million to Midland, with the flow-on impact to the economy estimated to be in the order of $2.2 billion
• Between 750 to 1,000 new dwellings will be established, providing new homes for an estimated 2,000 people
• An additional 650 new trees will be planted throughout New Junction, providing new habitats for birds and local fauna and delivering shade and shelter for the community
• Public open space will make up more than one fifth (2.3ha) of the New Junction precinct
ABOUT
28 City of Swan
NAT U R AL ENVIRO N M ENT
OUR VISION
Our City is proud of the green, rural nature of Swan, blessed with many natural assets, including high value natural lands, open spaces, the Swan River, wetlands and waterways which we will maintain.
N 1 - O U T C O M E - O U R E N V I R O N M E N T I S P R O T E C T E D F O R F U T U R E G E N E R AT I O N S
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
N1.1 Mitigate the City’s carbon footprint, reducing waste and greenhouse gas production
N1.1.1 Effectively manage resource consumption, including water, energy and non-renewable resources
N1.1.2 Reduce waste through reduction, re-use and recycling of waste products
Waste recycled 31.4% 30%
N1.2 Adapt to the effects of climate change
N1.2.1 Minimise the impact of extreme weather conditions through emergency management planning
N1.2.2 Implement policy changes through planning, building, land management and infrastructure
Satisfaction with the City’s environmental management
72.8%* 70.3%**
Land compliant with fire management requirements
91%*** 82%
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
Annual Report 2018/19 29
N 2 O U T C O M E – E N H A N C E B I O D I V E R S I T Y
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
N2.1 Enhance, preserve and protect local ecology and biodiversity of natural ecosystems
N2.1.1 Conserve and enhance open spaces
N2.1.2 Conserve natural vegetation and bushland
Nature reserve condition 17% excellent Same as previous year
18% very good
24% good
26% degraded
15% completely degraded*
N2.2 Reduce adverse impacts on biodiversity
N2.2.1 Protect waterways through appropriate land management practices
N2.2.2 Implement ‘best practice’ in management of ground and surface water
Waterways exceeding ANZECC trigger points (for contamination)
42% Total Nitrogen
40% Total Nitrogen
37% Total Phosphorus
35% Total Phosphorus
10% Total Suspended Solids
10% Total Suspended Solids
A D D I T I O N A L M E A S U R E S
MEASURE 2016/17 2017/18 2018/19
Tonnes of waste per household 0.90 0.91 0.90
FR BERRY RESERVE,G IDGEGANNUP
30 City of Swan
C LE A N B ILL O F H E A LTH FO R CIT Y O F SWA N RECYC LIN G
Recycling rates improved by 53 per cent in some areas after the City conducted a bin ‘health check’ across 2,000 households and businesses.
City staff carried out the bin audit between April and June 2019, starting with a visual check of general waste and recycling bins in randomly selected areas and following up with individual feedback about how each household could recycle better and waste less.
The intention of the audit was to help the community improve recycling habits and reduce recycling contamination, particularly following recent changes to recycling rules.
The audit achieved a 75% reduction in recyclables placed in bags across both industrial and residential properties. The audit also saw a 41% reduction in soft plastic contamination which includes plastic bags and other ‘scrunchable’ plastics.
The City will use the information collated through the audit to understand how well recycling is understood in its community, and where more education is required.
The audit also saw a 41% reduction in soft plastic contamination which includes plastic bags and other ‘scrunchable’ plastics.
Annual Report 2018/19 31
GOLD WATERWISE COUNCIL
The City was recertified as a Gold Waterwise Council in May 2019, for the second consecutive year. This recognises the City’s ongoing efforts to use water efficiently and to raise awareness of the value of water in our communities.
SWITCH TO SOL AR SEES MASSIVE SAVINGS
The City shaved approximately $85,000 off its energy bill and significantly reduced its CO2 emissions as a result of new rooftop solar panel systems installed across seven facilities.
The new solar panels generated 270 MW of clean energy at buildings including Swan Active Ballajura, Ethel Warren Bullsbrook Community Centre and Midland Sporting Complex.
GROWING STRONG
The City coordinates an extensive range of planting programs and initiatives to protect its natural assets and build a stronger natural environment.
This includes incorporating landscaping and plantings into capital works projects, hosting community planting events and donating seedlings, through to assisting Friends Groups to conserve and protect local reserves. The City also provides funding for environmental initiatives and tree planting through the Community Grants Scheme.
Approximately 46,600 trees, plants and seedlings were planted by the City and Friends Groups in 2018/19. This includes planting on verges, parks and natural reserves. In addition 10,000 trees, shrubs and groundcovers were provided to residents as part of the rural revegetation program to plant on their own properties.
TH IN KIN G G REEN
Thinking Green is a series of free community, sustainable living workshops presented by the City at libraries and other local venues.
The series aims to inspire participants to change their lifestyle to improve their wellbeing and be kinder to the environment.
The 2019 program consisted of 29 workshops across June to January, covering topics including:
• Solar battery storage
• Cleaning with chemistry
• Waste free kitchen
• Bike maintenance
• Keeping a rainwater tank
• Butterfly gardening
• Drawing on nature
• Natural pest control
• Permaculture
• Worm farming
The City shaved approximately $85,000 off its energy bill and significantly reduced its CO2 emissions as a result of new rooftop solar panel systems across seven facilities.
32 City of Swan
RE VEGETATING TO BUILD A STRONGER NATUR AL ENVIRONMENT
Ten thousand trees, shrubs and groundcovers were provided during the City’s 2019 Rural Properties Revegetation giveaway.
The program aims to complement the natural environment and increase the City’s tree canopy by offering free native plants to residents whose properties are 4,000 square metres (one acre) or greater in size.
Approximately 60 per cent of vegetation in the City is on private property, demonstrating how important it is to work with our community to build a stronger natural environment.
The plants available in the program are adapted to the region’s soils and climate and have low watering requirements.
WORKING TOGETHER TO PROTECT OUR ENVIRONMENT
The City is proud to work with our passionate volunteers to protect our environment for future generations.
More than 250 volunteers across 34 Friends Groups planted 17,927 seedlings at reserves across the City in 2018/19.
A Friends Group usually consists of a few community members working together informally to conserve and protect a local reserve under the management of the City.
1 0,0 0 0TR E E S S H RU BS & G R O U N D C O V E R S PROVI DE D TO ELIGI B LE R E S I D E NTS600 STREET TREES PLANTED
26,000 P L A N T S AT T H E M I D D L E S WA N FO R E S H O R E
2,065P L A N T S AT WO O D B R I D G E FO R E S H O R E
17,927 SEEDLINGS P L A N T E D AT R E S E R V E S AC R O S S T H E C I T Y B Y 3 4 F R I E N D S G R O U P S
FRIENDS GROUP, ARDMORE PARK,ELLENBROOK
Annual Report 2018/19 33
B 1 O U T C O M E - C O M M U N I T Y P L A C E S T O L I V E , R E C R E AT E A N D W O R K
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
B1.1 Facilitate and integrate housing options, local services, employment and recreational spaces
B1.1.1 Facilitate diverse, inclusive, housing options
B1.1.2 Strengthen growth through the alignment of land use and infrastructure planning
B1.1.3 Provide appropriate open space to recreate and connect
Households spending less than 30% of household income on mortgage repayments or rent
<30% on mortgage: 85.7%**
<30% on rent: 91.4%**
As previous year
Land zoned industrial that has been developed
Data not yet available Data not yet available
B1.2 Enhance public realm
B1.2.1 Build a sense of place through public realm and improved streetscapes
B1.2.2 Create liveable Places through Local Area Planning
Satisfaction with public spaces
79.2%* 74.8%*
*Community and Business Perception Survey 2018. ** ABS Census data.
B 2 O U T C O M E - I N F R A S T R U C T U R E T H AT M E E T S C O M M U N I T Y N E E D S
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
B2.1 Manage current and future assets and infrastructure
B2.1.1 Continue to improve asset management practices
B2.1.2 Maintain and protect heritage
Satisfaction with City assets: roads, paths, parks, buildings
Roads – 72.3%
Paths – 62.5%
Parks – 79.2%
Buildings – 71.3%*
Roads – 75.2%
Paths – 70.8%
Parks – 74.8%
Buildings – 76.5%**
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
B U ILT ENVIRO N M ENT
OUR VISION
Our City will lead the state in providing diverse and connected places, providing housing options for our growing and diverse population, young and old.
34 City of Swan
B 3 - O U T C O M E - S U S TA I N A B L E T R A N S P O R T S O L U T I O N S
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
B3.1 Advocate and provide alternative transport
B3.1.1 Lobby and advocate for public transport
B3.1.2 Provide bicycle and pedestrian infrastructure
Resident satisfaction with ease of moving between points of interest in their area
65.9%* 73%**
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
A D D I T I O N A L M E A S U R E S
NUMBER OF CITY ASSETS JUNE 2017 JUNE 2018 JUNE 2019
Land parcels 2,021 2,021 2,132
Building assets 251 251 257
Park and streetscape 774 Ha 809 Ha 836 Ha
Managed natural resource areas 1,202 Ha 1,254 Ha 1,254 Ha
Roads 1,529 km 1,545 km 1,567 km
Footpaths 802 km 806 km 815 km
Bridges and overpasses 140 141 141
Drainage pipes 799 km 852 km 817 km
Off street car parks 110 130 133
On street parking spaces 650* 720* 720*
* Estimate only
MEASURE 2016/17 2017/18 2018/19
Number of dwellings 50,875 ** As previous year (2016 Census data)
As previous year (2016 Census data)
Number of bedrooms per private dwelling 0 - 1 bdrm 920 As previous year (2016 Census data)
As previous year (2016 Census data)
2 bdrm 3,066
3 bdrm 15,901
4 bdrm 20,896
5+ bdrm 2,674
Number of train passenger boardings per year Midland Station Train Patronage 2016/17
Total boardings (ON): 1,017,169
Total alightings (OFF): 952,918***
Midland Station Train Patronage 2017/18
Total boardings (ON): 967,037
Total alightings (OFF): 904,534 ***
Midland Station Train Patronage 2018/19
Total boardings (ON): 977,774
Total alightings (OFF): 914,627***
Residents commuting to work by car 45,429
**
As previous year (2016 Census data)
As previous year (2016 Census data)
** Source: 2016 Census *** Source: Public Transport Authority
Annual Report 2018/19 35
ELLEN BROOK BRIDGE
The Ellen Brook bridge in Ellenbrook/Upper Swan was officially opened in August 2018. The construction of the bridge on Railway Parade was an advocacy priority for the City.
Key facts:
• Final cost $6.1 million
• Building Better Regions Fund contributed $3 million
• Roads to Recovery infrastructure program contributed $85,501
• Essential transport link for Upper Swan and Ellenbrook
• Improves community safety by providing an alternate access point during emergency situations such as bushfires
• Will help develop employment areas north of Bullsbrook
• Reduces congestion in the area
• Economic benefits, primarily driven by travel time savings, are independently estimated at $45 million over 30 years
HAZELMERE HALL RE VAMP
Hazelmere Hall was officially reopened in July 2018 after extensive renovations.
The $375,000 upgrade - which includes a new ceiling and internal walls, new furniture, and transformational renovations to the building’s exterior - was supported by a $100,000 State Government contribution. Hazelmere Hall was originally built in 1954 and was rebuilt in 1986.
M A J O R P R OJ EC T S CO M P L E T E D I N 2018/ 19
3
11
6 4Apple Street
Campersic Road
Ellen Brook Bridge
including bushlands, foreshore and rehabilitation works
Hagart Park, Lockridge
Kings Park, Ballajura
Riverina Park, Ellenbrook
Spring Reserve, Guildford
West Bullsbrook, Bullsbrook
Woodlake Park, Ellenbrook
Beechboro Community Hub
Hazelmere Hall
Swan Active Beechboro
Guildford heritage buildings renewal (Guildford Mechanics Institute, Library, Town Hall, Guildford Potters, Garrick Theatre, Guildford Courthouse, Gaol and Judy Hamersley House)
MA J O R ROAD U PG R AD E S
NATU R AL S PAC E
RE N EWAL S
PAR K U PG R AD E S
MA J O R B U I LDI NG
R E N OVATIO N PROJ EC TS
36 City of Swan
B EEC H B O RO CO M M U N IT Y H U B
The renovated Beechboro Community Hub was unveiled in March 2019, and now offers combined central services for the community.
Previously known as Altone Community Hub, the new facility includes the library, Swan Active Beechboro and Your Café. Since reopening, the library has seen a 60 per cent increase in visitation and Swan Active memberships have also increased by 20 per cent.
BEECHBORO COMMUNITY HUB,BEECHBORO
37
GUILDFORD HERITAGE LISTING
Guildford Historic Town has officially been added to the State Register of Heritage Places, the first place to be registered under the new Heritage Act 2018.
The City nominated Guildford for a place on the Register in 2018 after a survey of all Guildford property owners and tenants indicated 89 per cent supported the move.
INCRE ASED PARTICIPATION IN LOCAL ARE A PL ANNING
In 2018/19 the City introduced an interactive mapping tool, Social Pinpoint, to help community members take part in the Local Area Plan (LAP) consultation process by allowing ideas and concerns to be geographically pinpointed.
The new approach achieved significant increases in participation during consultation for the Malaga and Guildford Local Area Planning.
Quality data and feedback about land use outcomes in Malaga, along with participation rates, increased from 30 workshop attendees in 2014 to 317 online participants in 2018.
In the Guildford local area, participation in the LAP process increased from 44 workshop attendees in 2015 to 626 online participants in 2019.
Local Area Planning is a key opportunity for the City of Swan community to provide valuable input into the future planning of local areas. Extensive research and community consultation is undertaken to develop and review LAPs.
Local Area Planning involves local community members working together with the City to identify the specific issues affecting their community, and producing a Local Area Plan which informs planning for the delivery of community services and infrastructure.
DAY TON AND CAVERSHAM TO BENEFIT FROM NEW BRIDGE OVER REID HIGHWAY
The growing communities of Dayton and Caversham will enjoy better access to neighbouring areas and reduced congestion, with work progressing to construct a bridge over Reid Highway.
Jointly funded by the City and State Government, the new bridge will connect Caversham and Dayton. It will provide alternative access for buses crossing Reid Highway and pedestrians accessing a proposed new primary school at South Caversham. It will also provide an additional entry and exit point for emergency vehicles. Construction is being undertaken as part of the Reid Highway dual carriageway project.
38 City of Swan
SO CIAL
OUR VISION
Our diversity enhances and differentiates our community and will be supported through engagement and service partnerships.
S 1 O U T C O M E - A C C E S S I B L E S E R V I C E S M E E T I N G C H A N G I N G C O M M U N I T Y N E E D S
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
S1.1 Build service delivery options to meet the future needs of aged, youth, families and children
S1.1.1 Develop and deliver service options meeting future community requirements
S1.1.2 Seek alternative service providers to facilitate, coordinate or partner appropriate service access; such as other agencies, non-government organisations and community groups
Residents who like living in their community
91.3%* 87.7%**
Satisfaction with services and facilities: youth, families, seniors, people with disabilities
Youth – 50.2%
Family – 63.1%
Seniors – 67.4%
Disability –65.3% *
Youth – 62.3%
Family – 72.0%
Seniors – 72.7%
Disability –73.1%**
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
Annual Report 2018/19 39
S 2 O U T C O M E - C O M M U N I T Y H E A LT H A N D W E L L B E I N G
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
S2.1 Build connectivity in local areas
S2.1.1 Strengthen Place based management of services through collaboration and access
S2.1.2 Strengthen the sense of place and culture and belonging through inclusive community interaction and participation
S2.1.3 Actively strengthen relationships with our diverse cultural community
Volunteer rate (% of City of Swan population that volunteers through the City)
6.04% 5.96%
Satisfaction with services offered at Place: Place offices, libraries, community activities and events
Library services – 86.9%
Community activities and events – 64.1%*
Place office services - 82.2%*
Library services – 87.1%
Community activities and events – 69.2%**
Place office services – 90.2%
S2.2 Build a strong sense of community health and safety
S2.2.1 Facilitate improvement of community safety
S2.2.2 Strengthen public health and safety outcomes within the community through promotion and education
Satisfaction with the City’s role in community safety
62.2%* 62.5%**
Satisfaction with the City’s role in public health
60.4%* 71.4**
* Source: Community and Business Perceptions Survey 2017 ** Source: Community and Business Perceptions Survey 2018
AVON DESCENT, L ILAC H ILLGUILDFORD
40 City of Swan
A D D I T I O N A L M E A S U R E S
MEASURE 2016/17 2017/18 2018/19
Current (estimated) population 139,972 143,374 149,195
Population growth +2.41% +2.43% Data not yet available
Forecast population (+10 years) 194,634 199,867 205,040
Service age group populations * 0-4 9,984 Measures only updated during census years
5-11 13,360
12-17 10,825
18-24 12,834
25-34 20,989
35-49 28,667
50-59 16,307
60-69 10,869
70-84 7,245
85+ 1,361
Language spoken at home * Vietnamese 2,824
Filipino/Tagalog 2,210
Arabic 1,456
Italian 1,303
Mandarin 1,294
Aboriginal and Torres Strait Islander population 3,802 (2.9%)*
Socio-Economic Index for Areas (SEIFA) 994 *
Number of crimes per 1,000 people Total 99.46 Total 82.73 Total 64.43
People 22.37 People 17.61 People 11.50
Property 73.07 Property 61.95 Property 49.57
Traffic 3.99 Traffic 3.13 Traffic 3.27
Other 0.03 Other 0.04 Other 0.09
* 2016 Census data
Annual Report 2018/19 41
RECONCILIATION ACTION PL AN
The City of Swan is developing its Reconciliation Action Plan (RAP), a key corporate document that acknowledges the City’s ongoing commitment to working collaboratively with our Aboriginal and Torres Strait Islander communities.
In early 2019, community members were invited by way of Expression of Interest to join the Reconciliation Action Plan Advisory Group.
The Advisory Group includes Councillors and community representatives and is intended to identify issues and topics of importance in relation to the development and implementation of the City’s RAP. The group provides ideas and feedback on RAP draft documents to the internal working group.
VOLUNTEERING EXPO
The City of Swan was proud to present the Volunteering Expo to celebrate the wonderful contributions of volunteers and grow the volunteering community.
The expo was organised as part of National Volunteer Week celebrations and held at the Midland Town Hall in May 2019.
The event was a huge success and attended by over 300 people, with more than 40 different organisations and community groups taking part.
The Swan Volunteer Resource Centre has connected approximately 3,000 people with volunteer roles in the community, and supports over 211 groups to run their volunteer programs.
VOLUNTEERING EXPO, MIDLAND TOWN HALLMIDLAND
The Swan Volunteer Resource Centre has connected approximately 3,000 people with volunteer roles in the community, and supports over 211 groups to run their volunteer programs.
STO KED FESTIVA L A FL A M IN G S U CC ES S
The City presented Stoked Festival in April 2019, an interactive and immersive event that paid homage to Midland’s Railway Workshop era with a visionary interpretation of life in the yards.
Around 5,000 people from all over Perth attended, including those with connections to the Railway Workshops history, young families and art buffs.
Held in April, the festival marked a quarter of a century since tools at the historical Railway Workshops were downed for the final time.
A full line-up of eats, sights and sounds brought Railway Square alive – including aerial acrobatics, modern-day metalwork demonstrations, stilt walkers and magnificent machine displays.
43
SWAN ACTIVE REBR AND SEES INCRE ASE IN VISITATION
Memberships and visitation figures have increased at the City’s leisure centres under the new brand of Swan Active.
The purpose of the rebrand, which rolled out in 2018, is to improve access to and uptake of the services offered by the leisure centres, and to ensure the community is best served by these significant community assets.
The rebrand included launching an improved website and social media pages to make information easier to find, and strengthening customer service and staff training.
The result is improved customer satisfaction at the three Swan Active centres in Ballajura, Beechboro and Midland. Membership, which includes new sign ups and retention, has increased by 14 per cent at Midland and 20 per cent at Beechboro.
Swim school memberships have also increased by more than 30 per cent at both sites. Swan Active Ballajura was closed for renovations from April – June 2019 for renovation works.
ACCESS AND INCLUSION
The City continues to strive for excellence in providing equitable access to services, information, facilities, events and employment. One way we do this is through our Disability Access and Inclusion Plan (DAIP). The DAIP is reviewed every five years, with progress reports submitted to the Disability Services Commission annually.
The 2011-2016 DAIP was reviewed and a new plan developed, with input from the community and other stakeholders. The DAIP (2017-2022) sets out the City’s priorities for the next five years, and will be implemented with regular monitoring and annual reporting.
LOCAL ARTS
The City of Swan is committed to supporting local artists through exhibitions and public displays. These are predominantly showcased at Midland Junction Arts Centre, a vibrant community arts facility.
Midland Junction Arts Centre houses an annual program of regular and accessible visual arts workshops, curated exhibitions, events and performances, professional development and community development programs. This is managed by Mundaring Arts Centre in partnership with the City of Swan.
In addition to standalone exhibitions, projects and events, the City proudly supports a few regular exhibitions, including the annual In Focus art exhibition. Held in April, In Focus is curated by participating artists from across Western Australia with the support of DADAA.
The City also continued to support the Ellenbrook Open Art Award, which aims to promote, nurture and cultivate excellence in the visual arts for the community.
The Swan Environmental Art Project is another regular on the calendar. This annual project is an opportunity for primary school children in the City to engage with local and global environmental issues and promote a positive message about the importance of protecting the earth. The 2018 theme was ‘Plastic Pollution - Finding Solutions to Reduce our Footprint’.
44
COLL ABOR ATIVE MUR AL PROJECT IN STR AT TON
Stratton has a bright new mural, thanks to a great response from the local community who brought the project to life.
The City engaged Artist Mel McVee, known as Melski, to work with the community to create a mural for the Stratton Youth Centre and the boundary wall of the shopping centre.
Open painting days were held in June and July for everyone to get involved, which proved so popular that the mural was extended in size and an additional paint day was organised.
LIL AC HILL BAT TING ABOVE AVER AGE
The City welcomed the Perth Scorchers back to Lilac Hill Park in summer 2018/19, with 11,500 people coming to see some of the best players from around the world.
The massive weekend series, coordinated by the City of Swan and West Australian Cricket Association (WACA), included plenty of entertainment both on and off the field including free rides and water inflatables, Scorchers activities and a fan photo booth.
The Rebel Women’s Big Bash League series was also nominated for Community Event of the Year at the 2018 WA Sport and Recreation Industry Awards.
COMMUNITY MURAL ,STRATTON
Annual Report 2018/19 45
YO U N G PEO PLE M AT TER
With approximately 35.5 per cent of the population under 25, the City of Swan is committed to supporting its young community.
Guided by the City’s Youth Strategy, opportunities for young people are delivered through a range of events, programs and support services. Highlights included:
YOUTH OUT LOUDOver 40 young people took part in the annual public speaking competition in 2018. Considering the theme of ‘home’, young people were asked to deliver a speech addressing what home meant to them and what their hopes were for it. The competition series focuses on communication and leadership development, and provides an opportunity for young people to be a voice for their community.
YOUNG PEOPLE HAVING THEIR SAY Young people can influence services in a number of ways, from directing and delivering local programs to meeting with key decision makers, such as Council and members of Parliament. Youth Power, the City’s leadership group, also identifies issues that are important to young people and work to have a positive impact in our community.
YOUTH CENTRES Six youth centres located in Ballajura, Beechboro, Bullsbrook, Midland, Stratton and Ellenbrook provided a place to socialise, find support and engage young people in positive programs and activities.
3,000 VOLUNTEER HOURS Young people volunteer in a range of ways across the City, from influencing youth centre and school holiday programs, to planning and delivering Hyper events.
HYPERVISIONThere were a record number of entries to Hypervision 2019, with Zoë Sydney taking home both the Overall and Traditional prizes.
The contest asked artists to submit works that discussed, displayed and explored the concept of ‘impact’. HyperVision is delivered annually by the Hyper Team, young volunteers who are supported by City staff.
Artworks included photography, sculpture, traditional media, fashion/jewellery, short film, and experimental categories. All were exhibited at Midland Junction Arts Centre.
The Hyper Series aims to provide greater access to music and other contemporary arts experiences for young people in the region.
HYPERVIS ION, MIDLAND JUNCTION ARTS CENTREMIDLAND
46 City of Swan
GOVERNAN CE
OUR VISION
The City of Swan will be regarded as a leader across Local Government.
G 1 O U T C O M E - C I T Y O F S WA N I S S E E N A S A P L A C E T O L I V E , W O R K A N D V I S I T
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
G1.1 Provide accountable and transparent leadership
G1.1.1 Continue to develop a policy framework that guides decision making
G1.1.2 Integrate planning, resources and reporting
G1.1.3 Respond to State Government initiatives for the benefit of the City
Community who feel they have opportunities to participate in planning for the City’s future direction
44.2%* 53.2%**
Community who feel the City understands community needs and prioritises appropriately
63.2%* 61.5%**
G1.2 Promote the City of Swan as a place to live, work and visit
G1.2.1 Develop successful and collaborative Partnerships
G1.2.2 Advocate for infrastructure and access to services
G1.2.3 Promote, advocate and market the City and Place
Community who feel appropriately informed about the City’s services
59.4%* 73.7%**
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019
G 2 O U T C O M E - O P T I M I S E U S E O F C I T Y R E S O U R C E S
OBJECTIVE STRATEGIES SCP MEASURES 2017/18 2018/19
G2.1 Improve capability and capacity
G2.1.1 Improve organisational systems with a focus on innovative solutions
G2.1.2 Strengthen customer service
G2.1.3 Use resources efficiently and effectively
Satisfaction with the City’s responsiveness to resolving problems and enquiries
62.4%* 68.5%**
DLGC financial health indicator
91*** Data not yet available
* Source: Community and Business Perceptions Survey 2018 ** Source: Community and Business Perceptions Survey 2019 *** Source: mycouncil.wa.gov.au
Annual Report 2018/19 47
A D D I T I O N A L M E A S U R E S
MEASURE 2016/17 2017/18 2018/19
Number of electors 84,179 86,351 90,057
Voter turnout No election 30.2% 29.4%
Number of rateable properties 55,890 57,698 61,030
MAKING COUNCIL MEETINGS ACCESSIBLE FOR ALL
The City of Swan now records and llive streams Council Meetings and Agenda Forums to better engage with the community and make decisions and debate easier to access.
Launched in December 2018, the new service allows members of the community to visit the City’s website from any location with internet and access live streaming and recordings of Council meetings and agenda forums.
HOUSING AND POPUL ATION FORECASTS TO 2051
The City’s population and housing forecasts were updated in May, which shows the population is set to double over the next three decades.
By 2051, the City’s population is expected to grow to almost 310,000 people residing in approximately 120,000 dwellings.
With a growing population comes the need for improved services and new and upgraded infrastructure such community and recreational centres, active and passive parks, roads, cycleways and drainage.
The forecasts provide knowledge to assist with decisions about the future. For the City, this means planning for key infrastructure and services to ensure we are meeting our community needs into the future.
MIDLAND TOWN HALLMIDLAND
1,236ARC H IVE D VI EWS
1,061LIVE VI EWS
By 2051, the City’s population is expected to grow to almost 310,000 people residing in approximately 120,000 dwellings.
ADVOCATING FOR OUR COMMUNIT Y
This year’s advocacy efforts have achieved significant, positive outcomes for the community including:
ELLENBROOK AQUATIC AND LEISURE CENTREThe $55 million Ellenbrook Aquatic and Leisure Centre has been a long-desired facility for local residents.
In April, Federal Member for Pearce Christian Porter committed $25 million towards the project.
An indoor recreation centre will address the remaining shortfall of indoor sport space across the district and would further address the increasing needs of a booming local population.
LLOYD STREE T BRIDGEThe $35 million connection will allow the City to address congestion issues in the Hazelmere area. It will also save up to 12 minutes for commuters currently detouring around the river.
In the lead up to the Federal election, the City ran an innovative lobbying exercise to capture the attention of local candidates. The Build Bridges Not Traffic campaign used smart sticker technology to capture data on passing vehicles and automate emails to local MPs reminding them of the issue at hand.
In 2019, the Federal Government committed $20 million towards the completion of the Lloyd Street Bridge. The WA State Government also committed a further $20 million to the project and a connecting road, which will now progress into the final design and construction phase.
STOCK ROAD UPGR ADE AND BRIDGE IN BULLSBROOKThe upgrade will connect the new Northlink Highway with Great Northern Highway, opening up a new industrial area south of the Pearce Airforce base and creating local jobs in the region. In 2019, the City received Federal Government grant funding totalling $14.8 million.
48
Annual Report 2018/19 49
LORD ST & MARSHALL RDBENNETT SPRINGS
50 City of Swan
CO R P O R ATE M E A S U RES
The Corporate Business Plan sets out the resourcing (asset, financial and human), services, projects, targets and milestones that the City will use and measure to achieve the objectives outlined in the Strategic Community Plan (SCP).
This level of reporting measures organisational health and sustainability. These measures are monitored annually to ensure relevance and appropriateness of the City’s initiatives.
CATEGORY MEASURE TARGET 2017/18 2018/19
People Total staff turnover (%) 10-12% 14% 16%
Lost time injury frequency rate (%) 5% reduction 14% 7%
Customer and community Overall external customer satisfaction (%)
80% 72%1 75%2
Issues resolved at first contact (%) 85% 83% 81%
Average call wait times (# minutes average wait)
<3 minutes (industry average)
1 minute 26 seconds 1 minute 32 seconds
Sustainability Operational expenditure vs budget (% overall spent)
>90% 94% 101%
Capital Works Program delivery vs budget (% overall spent)
>80% 61% 56%
Financial health indicator 50 (minimum standard) 993 914
Greenhouse emissions Target under development
Research not conducted in 2017/18
Research not conducted in 2018/19
Sources:1 Community and Business Perceptions Survey 2018.2 Community and Business Perceptions Survey 2019.3 mycouncil.wa.gov.au. Please note this figure is published a year in lag and reflects the 2016/17 position.4 mycouncil.wa.gov.au. Please note this figure is published a year in lag and reflects the 2017/18 position.
Annual Report 2018/19 51
FINAN CIAL OVERVIEW
In accordance with the requirements of the Local Government Act 1995 Section 5.53, the Council is required to prepare and include audited financial statements within its Annual Report. Financial statements and notes are presented in Part 2.
RE VENUE
$191.4MTOTA L O PER ATI N G
R E V EN U E 2018/ 19
R ATE S 68%
S ERVIC E C HARG E S & OTH ER R E VEN U E 1%
O PER ATI N G G R ANTS, S U B S I DI E S & CO NTRI B UTIO N S 6%
FEE S & C HARG E S 21%
I NTER E S T E AR N I N GS 4%68%
4%
6%1%
21%
EXPENDITURE
R EC R E ATIO N AN D CU LTU R E 33%
L AW, O R DER AN D PU B LIC SAFE T Y 3%
TR AN S P O RT 24%
CO M M U N IT Y AM EN ITI E S 16%
GOVER NAN C E 1%
ED U C ATIO N AN D WELFAR E 5%
ECO N O M IC S ERVIC E S 4%
H E ALTH, G EN ER AL PU R P OS E FU N DI N G & OTH ER PRO PERT Y & S ERVIC E S 14%
$166MTOTA L O PER ATI N G
E XPEN D IT U R E 2018/ 19
33%
14%
24%
16%
5%
4%
1%
3%
52 City of Swan
CAPITAL WORKS
$61.5M C A P I TA L WO R K S FO R 2018/ 19
ROADS & INFRASTRUCTURE
BUILDINGS
PARKS INFRASTRUCTURE
PLANT & EQUIPMENT
LAND
$33.9M
$8.5M
$8.4M
$8.4M
$2 .3M
EXPENDITURE BY PROGR AM FOR E VERY $100 SPENT
R EC R E ATIO N AN D CU LTU R E
L AW, O R DER AN D PU B LIC SAFE T Y TR AN S P O RT
CO M M U N IT Y AM EN ITI E S
GOVER NAN C EED U C ATIO N AN D WELFAR E
ECO N O M IC S ERVIC E S
H E ALTH, G EN ER AL PU R P OS E FU N DI N G , OTH ER PRO PERT Y AN D S ERVIC E S
* E XC LU D E S C A PITA L E X P EN D IT U R E
$33 $3 $24 $16
$1 $5 $4 $14
FINAN CIAL REP O RTfor the year ended June 30, 2019
CO NTENTSI N D E P E N D E N T A U D I T O R S R E P O R T 5 4
S TAT E M E N T B Y T H E C H I E F E X E C U T I V E O F F I C E R 5 6
F I N A N C I A L O V E R V I E W F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9 5 8
S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E 5 8
S TAT E M E N T O F C A S H F L O W S 6 1
S TAT E M E N T O F R AT I N G I N F O R M AT I O N 6 2
F I N A N C I A L P E R F O R M A N C E I N D I C AT O R S 6 3
S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E ( B Y N AT U R E O R T Y P E ) 6 6
S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E ( B Y P R O G R A M ) 6 7
S TAT E M E N T O F F I N A N C I A L P O S I T I O N 6 9
S TAT E M E N T O F C H A N G E S I N E Q U I T Y 7 0
S TAT E M E N T O F C A S H F L O W S 7 1
R AT E S E T T I N G S TAT E M E N T 7 2
N O T E S T O , A N D F O R M I N G P A R T O F, T H E F I N A N C I A L R E P O R T 74
ELLENBROOK DISTR ICT OPEN SPACE NORTH,ELLENBROOK
54 City of Swan
Annual Report 2018/19 55
56 City of Swan Annual Report 2018/19 57
Annual Report 2018/19 57
58 City of Swan
FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2019
The Annual Financial Report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material Accounting policies which have been adopted in the preparation of the financial report are stated in the notes and have been consistently applied unless stated otherwise. Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of the selected non-current assets, financial assets and liabilities. Program reclassifications and adjustments performed in 2018/19 have resulted in changes to the 2017/18 balances. The statements are to be read in conjunction with the updated comparatives.
STATEMENT OF COMPREHENSIVE INCOME
The Statement of Comprehensive Income is prepared on an accrual basis. This process recognises income as it is earned and expenses as they are incurred. In addition it makes adjustments for unearned income, credit sales, pre-payments, accrued expenses and non-cash provisions (i.e. depreciation and leave entitlements). This method provides a more accurate reflection of the transactions which actually occurred during the accounting period, and is a better reflection of the actual business activities undertaken by the City.
REVENUE
The City’s total revenue of $235.6 million (2017/18 $253.7 million) consists of operational revenues of $191.4 million (2017/18 $183.4 million) and non-operational revenues of $44.2 million (2017/18 $70.3 million). Operating revenue increased by $8 million principally due to an increase in Rate revenue of $4.7 million and $2.7 million in Fees and Charges. Revenues classified by Nature or Type identify the inputs by the type of revenue. These classifications are defined by Regulation under the Local Government Act WA.
$m %
A - Rates 130.5 68.1%
B - Fees and Charges 40.5 21.2%
C - Grants, Subsidies and Contributions 10.8 5.7%
D - Interest Earnings 6.8 3.5%
E - Other Revenue 2.9 1.5%
AB
CD E
OPERATING REVENUE BY NATURE OR TYPE
Annual Report 2018/19 59
Non-operational revenues decreased by $26.1 million compared to the prior year largely due to reduced Developer Contributions and Non-Operating Grants. The City received $24.1 million ($35.0 million 2017/18) of infrastructure assets (i.e. roads, drainage and footpaths) as in-kind contributions by developers. These contributions are shown as non-ordinary activities income in the Statement of Comprehensive Income. The City takes on the responsibility for the maintenance of these assets and these contributions are taken into account in the City’s asset register. As part of the Developer Contribution Plans the City received cash contributions of $7.9 million ($12.8 million 2017/18) from developers. The funds received will be utilised for the construction of infrastructure in the Development Contribution Areas.
Grants, Subsidies and Contributions for operating and non-operating expenses continued to be an important source of funds for the City. The City received $19.5 million (2017/18 $27.0 million) for the current financial year. $10.8 million ($10.4 million 2017/18) was received for operating activities and $8.7 million ($16.6 million 2017/18) for non-operating expenses. The following chart shows the breakdown of operational revenue by program (also defined by Regulation under the Local Government Act WA). Rate revenues and general purpose grants are classified in the program General Purpose Funding, whilst refuse collection charges are included in the Community Amenities program.
$m % A - General Purpose 143.5 75.0% B - Governance 2.5 1.3% C - Law, Order and Public Safety 1.0 0.5% D - Health 0.3 0.2% E - Education and Welfare 3.8 2.0% F - Housing 0.1 0.0% G - Community Amenities 26.3 13.7% H - Recreation and Culture 7.8 4.0% I - Transport 2.0 1.1% J - Economic Services 1.7 0.9% K - Other Property and Services 2.4 1.3%
A
B
CD
E FG
H I J K
OPERATING REVENUE BY PROGRAM
58 City of Swan
FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2019
The Annual Financial Report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material Accounting policies which have been adopted in the preparation of the financial report are stated in the notes and have been consistently applied unless stated otherwise. Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of the selected non-current assets, financial assets and liabilities. Program reclassifications and adjustments performed in 2018/19 have resulted in changes to the 2017/18 balances. The statements are to be read in conjunction with the updated comparatives.
STATEMENT OF COMPREHENSIVE INCOME
The Statement of Comprehensive Income is prepared on an accrual basis. This process recognises income as it is earned and expenses as they are incurred. In addition it makes adjustments for unearned income, credit sales, pre-payments, accrued expenses and non-cash provisions (i.e. depreciation and leave entitlements). This method provides a more accurate reflection of the transactions which actually occurred during the accounting period, and is a better reflection of the actual business activities undertaken by the City.
REVENUE
The City’s total revenue of $235.6 million (2017/18 $253.7 million) consists of operational revenues of $191.4 million (2017/18 $183.4 million) and non-operational revenues of $44.2 million (2017/18 $70.3 million). Operating revenue increased by $8 million principally due to an increase in Rate revenue of $4.7 million and $2.7 million in Fees and Charges. Revenues classified by Nature or Type identify the inputs by the type of revenue. These classifications are defined by Regulation under the Local Government Act WA.
$m %
A - Rates 130.5 68.1%
B - Fees and Charges 40.5 21.2%
C - Grants, Subsidies and Contributions 10.8 5.7%
D - Interest Earnings 6.8 3.5%
E - Other Revenue 2.9 1.5%
AB
CD E
OPERATING REVENUE BY NATURE OR TYPE
Annual Report 2018/19 59
Non-operational revenues decreased by $26.1 million compared to the prior year largely due to reduced Developer Contributions and Non-Operating Grants. The City received $24.1 million ($35.0 million 2017/18) of infrastructure assets (i.e. roads, drainage and footpaths) as in-kind contributions by developers. These contributions are shown as non-ordinary activities income in the Statement of Comprehensive Income. The City takes on the responsibility for the maintenance of these assets and these contributions are taken into account in the City’s asset register. As part of the Developer Contribution Plans the City received cash contributions of $7.9 million ($12.8 million 2017/18) from developers. The funds received will be utilised for the construction of infrastructure in the Development Contribution Areas.
Grants, Subsidies and Contributions for operating and non-operating expenses continued to be an important source of funds for the City. The City received $19.5 million (2017/18 $27.0 million) for the current financial year. $10.8 million ($10.4 million 2017/18) was received for operating activities and $8.7 million ($16.6 million 2017/18) for non-operating expenses. The following chart shows the breakdown of operational revenue by program (also defined by Regulation under the Local Government Act WA). Rate revenues and general purpose grants are classified in the program General Purpose Funding, whilst refuse collection charges are included in the Community Amenities program.
$m % A - General Purpose 143.5 75.0% B - Governance 2.5 1.3% C - Law, Order and Public Safety 1.0 0.5% D - Health 0.3 0.2% E - Education and Welfare 3.8 2.0% F - Housing 0.1 0.0% G - Community Amenities 26.3 13.7% H - Recreation and Culture 7.8 4.0% I - Transport 2.0 1.1% J - Economic Services 1.7 0.9% K - Other Property and Services 2.4 1.3%
A
B
CD
E FG
H I J K
OPERATING REVENUE BY PROGRAM
60 City of Swan
EXPENSES
The City’s operating expenditure for the financial year inclusive of borrowing costs was $166.0 million ($150.3 million 2017/18), an increase of $15.7 million over the prior year. Employee costs of $75.2 million ($73.9 million 2017/18) accounted for 45.3% of operating expenditures. The second largest contributor to expenditure was Depreciation on Non-Current Assets, which amounted to $41.2 million ($34.4 million 2017/18) or 22.9% of operating expenditure. This item reflects the consumption of the City's assets consisting of property, plant and equipment, and public infrastructure assets. Materials and Contracts, and Utility Charges represented the third and fourth largest items of expenditure respectively. Materials and Contracts came to $38.2 million ($31.1 million 2017/18) or 23.0% of operating costs with Utilities costing $6.1 million ($6.6 million 2017/18), representing 3.7% of operating expenditures. Expenses classified by Nature or Type identify the outputs by the type of expenditure. These classifications are defined by Regulation under the Local Government Act WA.
$m % A - Employee Costs 75.2 45.3% B - Other Expenditure 1.3 0.8% C - Materials and Contracts 38.2 23.0% D - Utility Charges 6.1 3.7% E - Depreciation on Non-Current Assets 41.2 24.8% F - Interest Expenses 1.8 1.1% G - Insurance Expenses 2.2 1.3%
Operating expenditure by program, the City applies its funds to a wide range of services and programs. The major outlays inclusive of interest charges are for Recreation and Culture $55.3 million ($53.4 million 2017/18) or 33.3%, Transport accounts for $40.4 million ($31.0 million 2017/18) or 24.4% of spending. Community Amenities $26.2 million ($25.6 million 2017/18) or 15.8%, community amenities includes waste management. The following chart shows the breakdown of operational expenditure (also defined by Regulation under the Local Government Act WA) by program inclusive of interest expenditure.
A
BC
D
E
F G
EXPENDITURE BY NATURE OR TYPE
Annual Report 2018/19 61
$m % A - General Purpose 16.1 9.7% B - Governance 2.0 1.2% C - Law, Order and Public Safety 5.1 3.1% D - Health 1.9 1.2% E - Education and Welfare 8.2 4.9% F - Housing 0.1 0.1% G - Community Amenities 26.2 15.8% H - Recreation and Culture 55.3 33.3% I - Transport 40.4 24.3% J - Economic Services 6.1 3.7% K - Other Property and Services 4.5 2.7%
OTHER COMPREHENSIVE INCOME
The statements recognise the fair value of property plant and equipment and all infrastructure assets. Regulation 17A of the Local Government (Financial Management) Regulations 1996, lays down a regulatory framework and mandatory timetable for revaluations. There were no fixed asset revaluations conducted in the 2018/19 financial year. Increments of $85k relate to the City's share in the Eastern Metropolitan Regional Council. The total increase is shown as other comprehensive income in the Statement of Comprehensive Income and is not included in the calculation of the year’s net result.
STATEMENT OF CASH FLOWS
Cash resource management is a vital part of the financial management of the City. The Statement of Cash Flows discloses the cash generated from operations, non-operating payments or receipts, financing activities (debt) and the amount of the cash and cash equivalents available to the City. During the year the City received $193.0 million from operating activities ($186.7 million 2017/18), an increase of $6.3 million compared to the prior year. The most notable items were Rates, Fees and Charges, and Operating Grants, Subsidies and Contributions representing $179.2 million of inflows. Cash outflows for operating activities decreased by $14.7 million in comparison to the prior year, totalling $119.5 million for this financial year ($134.1 million 2017/18). Significant items were Employee Costs, Materials and Contracts, and Utilities accounting for $110.1 million of cash outflows. The net cash provided by operating activities was $73.6 million which represents an improvement of $21.1 million on the previous year ($52.5 million 2017/18).
A B CD
E
F
G
H
I
J KOPERATING EXPENDITURE BY PROGRAM
60 City of Swan
EXPENSES
The City’s operating expenditure for the financial year inclusive of borrowing costs was $166.0 million ($150.3 million 2017/18), an increase of $15.7 million over the prior year. Employee costs of $75.2 million ($73.9 million 2017/18) accounted for 45.3% of operating expenditures. The second largest contributor to expenditure was Depreciation on Non-Current Assets, which amounted to $41.2 million ($34.4 million 2017/18) or 22.9% of operating expenditure. This item reflects the consumption of the City's assets consisting of property, plant and equipment, and public infrastructure assets. Materials and Contracts, and Utility Charges represented the third and fourth largest items of expenditure respectively. Materials and Contracts came to $38.2 million ($31.1 million 2017/18) or 23.0% of operating costs with Utilities costing $6.1 million ($6.6 million 2017/18), representing 3.7% of operating expenditures. Expenses classified by Nature or Type identify the outputs by the type of expenditure. These classifications are defined by Regulation under the Local Government Act WA.
$m % A - Employee Costs 75.2 45.3% B - Other Expenditure 1.3 0.8% C - Materials and Contracts 38.2 23.0% D - Utility Charges 6.1 3.7% E - Depreciation on Non-Current Assets 41.2 24.8% F - Interest Expenses 1.8 1.1% G - Insurance Expenses 2.2 1.3%
Operating expenditure by program, the City applies its funds to a wide range of services and programs. The major outlays inclusive of interest charges are for Recreation and Culture $55.3 million ($53.4 million 2017/18) or 33.3%, Transport accounts for $40.4 million ($31.0 million 2017/18) or 24.4% of spending. Community Amenities $26.2 million ($25.6 million 2017/18) or 15.8%, community amenities includes waste management. The following chart shows the breakdown of operational expenditure (also defined by Regulation under the Local Government Act WA) by program inclusive of interest expenditure.
A
BC
D
E
F G
EXPENDITURE BY NATURE OR TYPE
Annual Report 2018/19 61
$m % A - General Purpose 16.1 9.7% B - Governance 2.0 1.2% C - Law, Order and Public Safety 5.1 3.1% D - Health 1.9 1.2% E - Education and Welfare 8.2 4.9% F - Housing 0.1 0.1% G - Community Amenities 26.2 15.8% H - Recreation and Culture 55.3 33.3% I - Transport 40.4 24.3% J - Economic Services 6.1 3.7% K - Other Property and Services 4.5 2.7%
OTHER COMPREHENSIVE INCOME
The statements recognise the fair value of property plant and equipment and all infrastructure assets. Regulation 17A of the Local Government (Financial Management) Regulations 1996, lays down a regulatory framework and mandatory timetable for revaluations. There were no fixed asset revaluations conducted in the 2018/19 financial year. Increments of $85k relate to the City's share in the Eastern Metropolitan Regional Council. The total increase is shown as other comprehensive income in the Statement of Comprehensive Income and is not included in the calculation of the year’s net result.
STATEMENT OF CASH FLOWS
Cash resource management is a vital part of the financial management of the City. The Statement of Cash Flows discloses the cash generated from operations, non-operating payments or receipts, financing activities (debt) and the amount of the cash and cash equivalents available to the City. During the year the City received $193.0 million from operating activities ($186.7 million 2017/18), an increase of $6.3 million compared to the prior year. The most notable items were Rates, Fees and Charges, and Operating Grants, Subsidies and Contributions representing $179.2 million of inflows. Cash outflows for operating activities decreased by $14.7 million in comparison to the prior year, totalling $119.5 million for this financial year ($134.1 million 2017/18). Significant items were Employee Costs, Materials and Contracts, and Utilities accounting for $110.1 million of cash outflows. The net cash provided by operating activities was $73.6 million which represents an improvement of $21.1 million on the previous year ($52.5 million 2017/18).
A B CD
E
F
G
H
I
J KOPERATING EXPENDITURE BY PROGRAM
62 City of Swan
Cash utilised for the acquisition of plant and equipment and the construction of infrastructure assets was $54.1 million ($61.5 million 2017/18), a decrease of $7.4 million.
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
The purpose of the Statement of Financial Position is to provide a “snap-shot” of the overall financial position of the City. This statement is constructed according to well defined accounting principles which are embodied in the Australian Accounting Standards. The ratepayer equity (net community assets) in the City can be calculated by deducting total liabilities from total assets. The Statement discloses transactions as current and non-current assets, current and non-current liabilities and equity. At the end of the financial year the City had fixed assets of $2.0 billion ($2.0 billion 2017/18) under management to provide services and facilities to the community. There were borrowings of $36.4 million ($43.4 million in 2017/18) and reserves of $141.8 million ($122.2 million in 2017/18). The value of the City’s investment in the Eastern Metropolitan Regional Council was $76.4 million as at 30 June 2019. Net community assets were $2.2 billion compared to $2.1 billion in 2017/18.
STATEMENT OF RATING INFORMATION (NOTE 24)
The Local Government Act 1995 allows Local Governments to adopt differential rates and the City of Swan has levied differential rates for a number of years. This has been to allow an equitable basis of levying rates on the diverse types of rateable properties within the City. For the 2018/19 financial year the City of Swan increased differential rates by 1.8%. Properties in the urban suburbs of the City have rates based on the Gross Rental Values (GRVs) as determined by the Valuer General once every three years. The last revaluation was undertaken during 2017/18 financial year. Properties in rural areas have rates based on their Unimproved Values (UVs) as determined each year by the Valuer General. Concessional rates are set for Farmland (previously Urban and Swan Valley Farmland), with the highest differential rate applied to the UV Commercial differential rate type. Total general rates levied in 2018/19 were $122.9 million ($118.1 million 2017/18) which was slightly higher than the budget of $121.4 million. The City also applies a specified area rate for drainage and infrastructure works in four categories; Midland District Drainage, Hazelmere/Guildford District Drainage, GRV - Hazelmere Industrial Area Infrastructure and UV - Hazelmere Industrial Area Infrastructure. These rates raised $2.8 million in 2018/19 ($2.7 million 2017/18).
Annual Report 2018/19 63
FINANCIAL PERFORMANCE INDICATORS
Measures the percentage of net rate revenue allocated to the repayment of loans.
The net annual growth of rate revenue compared with loan repayments each year.
1
2
3
4
5
6
7
8
9
10
2014/15 2015/16 2016/17 2017/18 2018/19
Per
cen
tag
e
Financial Year
Debt Costs to Rates Income
1
2
3
4
5
6
7
8
9
10
102030405060708090
100110120130140
2014/15 2015/16 2016/17 2017/18 2018/19
Rep
aym
ents
-$
Mil
lion
s
Rat
es -
$M
illio
ns
Financial Year
Rates Income/Loan Repayments
RATE REVENUE LOAN REPAYMENTS
62 City of Swan
Cash utilised for the acquisition of plant and equipment and the construction of infrastructure assets was $54.1 million ($61.5 million 2017/18), a decrease of $7.4 million.
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
The purpose of the Statement of Financial Position is to provide a “snap-shot” of the overall financial position of the City. This statement is constructed according to well defined accounting principles which are embodied in the Australian Accounting Standards. The ratepayer equity (net community assets) in the City can be calculated by deducting total liabilities from total assets. The Statement discloses transactions as current and non-current assets, current and non-current liabilities and equity. At the end of the financial year the City had fixed assets of $2.0 billion ($2.0 billion 2017/18) under management to provide services and facilities to the community. There were borrowings of $36.4 million ($43.4 million in 2017/18) and reserves of $141.8 million ($122.2 million in 2017/18). The value of the City’s investment in the Eastern Metropolitan Regional Council was $76.4 million as at 30 June 2019. Net community assets were $2.2 billion compared to $2.1 billion in 2017/18.
STATEMENT OF RATING INFORMATION (NOTE 24)
The Local Government Act 1995 allows Local Governments to adopt differential rates and the City of Swan has levied differential rates for a number of years. This has been to allow an equitable basis of levying rates on the diverse types of rateable properties within the City. For the 2018/19 financial year the City of Swan increased differential rates by 1.8%. Properties in the urban suburbs of the City have rates based on the Gross Rental Values (GRVs) as determined by the Valuer General once every three years. The last revaluation was undertaken during 2017/18 financial year. Properties in rural areas have rates based on their Unimproved Values (UVs) as determined each year by the Valuer General. Concessional rates are set for Farmland (previously Urban and Swan Valley Farmland), with the highest differential rate applied to the UV Commercial differential rate type. Total general rates levied in 2018/19 were $122.9 million ($118.1 million 2017/18) which was slightly higher than the budget of $121.4 million. The City also applies a specified area rate for drainage and infrastructure works in four categories; Midland District Drainage, Hazelmere/Guildford District Drainage, GRV - Hazelmere Industrial Area Infrastructure and UV - Hazelmere Industrial Area Infrastructure. These rates raised $2.8 million in 2018/19 ($2.7 million 2017/18).
Annual Report 2018/19 63
FINANCIAL PERFORMANCE INDICATORS
Measures the percentage of net rate revenue allocated to the repayment of loans.
The net annual growth of rate revenue compared with loan repayments each year.
1
2
3
4
5
6
7
8
9
10
2014/15 2015/16 2016/17 2017/18 2018/19
Per
cen
tag
e
Financial Year
Debt Costs to Rates Income
1
2
3
4
5
6
7
8
9
10
102030405060708090
100110120130140
2014/15 2015/16 2016/17 2017/18 2018/19
Rep
aym
ents
-$
Mil
lion
s
Rat
es -
$M
illio
ns
Financial Year
Rates Income/Loan Repayments
RATE REVENUE LOAN REPAYMENTS
64 City of Swan
Measures the percentage of total operating revenue allocated to the repayment of loans.
Compares total principal outstanding on loans at the end of each financial year.
0
1
2
3
4
5
6
2014/15 2015/16 2016/17 2017/18 2018/19
Per
cen
tag
e
Financial Year
Debt Servicing RatioDebt Service Costs/Operating Revenue
5
10
15
20
25
30
35
40
45
50
2014/15 2015/16 2016/17 2017/18 2018/19
$M
illio
ns
Financial Year
Principal Outstanding
Annual Report 2018/19 65
Compares total operating revenue over the current and previous financial years.
50
100
150
200
250
2014/15 2015/16 2016/17 2017/18 2018/19
$ M
illio
ns
Financial Year
Operating Revenue
64 City of Swan
Measures the percentage of total operating revenue allocated to the repayment of loans.
Compares total principal outstanding on loans at the end of each financial year.
0
1
2
3
4
5
6
2014/15 2015/16 2016/17 2017/18 2018/19
Per
cen
tag
e
Financial Year
Debt Servicing RatioDebt Service Costs/Operating Revenue
5
10
15
20
25
30
35
40
45
50
2014/15 2015/16 2016/17 2017/18 2018/19
$M
illio
ns
Financial Year
Principal Outstanding
Annual Report 2018/19 65
Compares total operating revenue over the current and previous financial years.
50
100
150
200
250
2014/15 2015/16 2016/17 2017/18 2018/19
$ M
illio
ns
Financial Year
Operating Revenue
Actual Budget Actual2018/19 2018/19 2017/18
NOTE $ $ $RevenueRates 24(a) 130,456,543 127,858,030 125,778,186 Fees and Charges 2(a) 40,497,851 40,184,690 37,819,225 Service Charges 24(c) 701 - 1,235,034 Operating Grants, Subsidies and Contributions 2(a) 10,818,921 9,653,000 10,384,547 Interest Earnings 2(a) 6,793,883 5,666,840 5,663,681 Other Revenue 2 2,861,718 774,760 2,510,989
191,429,617 184,137,320 183,391,662 ExpensesEmployee Costs (75,248,272) (78,944,450) (73,850,225) Materials and Contracts (38,203,935) (37,256,770) (31,051,049) Utility Charges (6,065,967) (7,447,360) (6,565,614) Depreciation On Non-Current Assets 11(b) (41,197,785) (36,412,730) (34,386,358) Interest Expenses 2(b) (1,805,869) (2,106,750) (2,012,002) Insurance Expenses (2,194,957) (607,020) (676,575) Other Expenditure (1,302,612) (1,594,650) (1,790,624)
(166,019,397) (164,369,730) (150,332,447)
25,410,220 19,767,590 33,059,215 Add Non-Ordinary ActivitiesGrants, Subsidies & Contributions 8,692,967 8,138,400 16,614,296 Gifted Assets from Developers: Other 21,455,722 12,750,000 29,317,569 Developers Contributions: Cash 7,927,065 8,342,240 12,781,392 Developers Contribution Plans: In Kind 2,636,417 4,664,710 5,631,839 Land Ceded To The Crown (1,979,004) (1,586,470) (1,787,523) Profit On Asset Disposals 11(a) 454,707 - 1,199,241 (Loss) On Asset Disposals 11(a) (1,590,090) (2,496,090) (4,726) Profit/(Loss) On Investments 18 1,552 - 4,810 Unrealised Gain From EMRC 21(a) 4,583,216 5,000,000 4,785,810 Unrealised Gain Investment In WALGA House 8 16,403 - (74)
42,198,954 34,812,790 68,542,634
Net Result 67,609,174 54,580,380 101,601,849
Other Comprehensive IncomeChanges In Asset Revaluation Surplus 12 85,301 - 393,690,028
Total Other Comprehensive Income 85,301 - 393,690,028Total Comprehensive Income 67,694,475 54,580,380 495,291,877
For the Year Ended 30 June 2019STATEMENT OF COMPREHENSIVE INCOME BY NATURE/TYPE
The amount shown as Rates Revenue in this statement is greater than that shown in the Rates Setting Statement as it includes Specified Area, Ex-Gratia, Write Offs and Rates in Advance which is shown separately in the Rates Setting Statement.Refer to Note 24(a) of the notes to the Financial Statements. This statement is to be read in conjunction with the accompanying notes.
Actual Budget Actual2018/19 2018/19 2017/18
NOTE $ $ $
Operating Revenue 2General Purpose Funding 143,494,043 138,977,470 137,226,985Governance 2,547,867 150,240 1,308,188Law, Order and Public Safety 998,321 936,030 2,318,330Health 347,205 295,000 341,332Education and Welfare 3,783,147 4,248,700 4,325,539Housing 59,730 63,000 63,478Community Amenities 26,268,954 25,810,550 24,172,223Recreation and Culture 7,760,148 7,515,280 7,382,886Transport 2,034,597 1,871,720 1,886,267Economic Services 1,705,831 1,548,000 1,842,876Other Property and Services 2,429,773 2,721,330 2,523,560
191,429,617 184,137,320 183,391,662Operating Expenses Excluding Finance CostsGovernance (16,135,029) (14,983,954) (11,849,787)General Purpose Funding (2,008,060) (2,516,382) (2,209,943)Law, Order and Public Safety (5,078,871) (5,004,284) (5,869,332)Health (1,935,377) (1,859,931) (1,801,616)Education and Welfare (8,167,816) (9,399,627) (8,752,958)Housing (91,435) (109,441) (90,332)Community Amenities (25,761,478) (28,125,837) (25,649,923)Recreation and Culture (54,665,318) (56,051,204) (52,750,224)Transport (40,138,917) (35,211,735) (30,617,544)Economic Services (6,070,943) (6,154,363) (5,634,789)Other Property and Services (4,160,285) (2,846,221) (3,093,999)
(164,213,529) (162,262,979) (148,320,447)Finance Costs 2(b)Governance (32,339) (33,440) (39,054)Community Amenities (438,235) (443,120) (489,954)Recreation and Culture (662,707) (728,130) (637,679)Transport (297,100) (512,791) (392,082)Other Property and Services (375,488) (389,270) (453,233)
(1,805,869) (2,106,751) (2,012,002)
25,410,220 19,767,590 33,059,213Profit/(Loss) On Asset Disposals 11(a)Governance (289,932) - 3,115Law, Order and Public Safety (3,047) - -Health (3,150) - -Education and Welfare (20,180) - -Recreation and Culture (971,371) (2,479,560) 693,987Transport (22,275) - 497,413Economic Services (40,370) - -Other Property and Services 214,942 (16,530) -
11(a) (1,135,383) (2,496,090) 1,194,515Non-Operating Grants, Subsidies & ContributionsGovernance 168,873 245,570 201,375Law, Order and Public Safety 223,499 169,390 30,000Community Amenities 10,562,070 13,006,950 18,413,231Recreation and Culture 1,267,582 1,872,500 9,601,314Transport 28,490,147 18,600,940 36,099,176
40,712,171 33,895,350 64,345,096Land Ceded to CrownCommunity Amenities (1,979,004) (1,586,470) (1,709,513)Transport - - (78,010)
(1,979,004) (1,586,470) (1,787,523)
STATEMENT OF COMPREHENSIVE INCOME BY PROGRAMFor the Year Ended 30 June 2019
Actual Budget Actual2018/19 2018/19 2017/18
NOTE $ $ $RevenueRates 24(a) 130,456,543 127,858,030 125,778,186 Fees and Charges 2(a) 40,497,851 40,184,690 37,819,225 Service Charges 24(c) 701 - 1,235,034 Operating Grants, Subsidies and Contributions 2(a) 10,818,921 9,653,000 10,384,547 Interest Earnings 2(a) 6,793,883 5,666,840 5,663,681 Other Revenue 2 2,861,718 774,760 2,510,989
191,429,617 184,137,320 183,391,662 ExpensesEmployee Costs (75,248,272) (78,944,450) (73,850,225) Materials and Contracts (38,203,935) (37,256,770) (31,051,049) Utility Charges (6,065,967) (7,447,360) (6,565,614) Depreciation On Non-Current Assets 11(b) (41,197,785) (36,412,730) (34,386,358) Interest Expenses 2(b) (1,805,869) (2,106,750) (2,012,002) Insurance Expenses (2,194,957) (607,020) (676,575) Other Expenditure (1,302,612) (1,594,650) (1,790,624)
(166,019,397) (164,369,730) (150,332,447)
25,410,220 19,767,590 33,059,215 Add Non-Ordinary ActivitiesGrants, Subsidies & Contributions 8,692,967 8,138,400 16,614,296 Gifted Assets from Developers: Other 21,455,722 12,750,000 29,317,569 Developers Contributions: Cash 7,927,065 8,342,240 12,781,392 Developers Contribution Plans: In Kind 2,636,417 4,664,710 5,631,839 Land Ceded To The Crown (1,979,004) (1,586,470) (1,787,523) Profit On Asset Disposals 11(a) 454,707 - 1,199,241 (Loss) On Asset Disposals 11(a) (1,590,090) (2,496,090) (4,726) Profit/(Loss) On Investments 18 1,552 - 4,810 Unrealised Gain From EMRC 21(a) 4,583,216 5,000,000 4,785,810 Unrealised Gain Investment In WALGA House 8 16,403 - (74)
42,198,954 34,812,790 68,542,634
Net Result 67,609,174 54,580,380 101,601,849
Other Comprehensive IncomeChanges In Asset Revaluation Surplus 12 85,301 - 393,690,028
Total Other Comprehensive Income 85,301 - 393,690,028Total Comprehensive Income 67,694,475 54,580,380 495,291,877
For the Year Ended 30 June 2019STATEMENT OF COMPREHENSIVE INCOME BY NATURE/TYPE
The amount shown as Rates Revenue in this statement is greater than that shown in the Rates Setting Statement as it includes Specified Area, Ex-Gratia, Write Offs and Rates in Advance which is shown separately in the Rates Setting Statement.Refer to Note 24(a) of the notes to the Financial Statements. This statement is to be read in conjunction with the accompanying notes.
Actual Budget Actual2018/19 2018/19 2017/18
NOTE $ $ $
Operating Revenue 2General Purpose Funding 143,494,043 138,977,470 137,226,985Governance 2,547,867 150,240 1,308,188Law, Order and Public Safety 998,321 936,030 2,318,330Health 347,205 295,000 341,332Education and Welfare 3,783,147 4,248,700 4,325,539Housing 59,730 63,000 63,478Community Amenities 26,268,954 25,810,550 24,172,223Recreation and Culture 7,760,148 7,515,280 7,382,886Transport 2,034,597 1,871,720 1,886,267Economic Services 1,705,831 1,548,000 1,842,876Other Property and Services 2,429,773 2,721,330 2,523,560
191,429,617 184,137,320 183,391,662Operating Expenses Excluding Finance CostsGovernance (16,135,029) (14,983,954) (11,849,787)General Purpose Funding (2,008,060) (2,516,382) (2,209,943)Law, Order and Public Safety (5,078,871) (5,004,284) (5,869,332)Health (1,935,377) (1,859,931) (1,801,616)Education and Welfare (8,167,816) (9,399,627) (8,752,958)Housing (91,435) (109,441) (90,332)Community Amenities (25,761,478) (28,125,837) (25,649,923)Recreation and Culture (54,665,318) (56,051,204) (52,750,224)Transport (40,138,917) (35,211,735) (30,617,544)Economic Services (6,070,943) (6,154,363) (5,634,789)Other Property and Services (4,160,285) (2,846,221) (3,093,999)
(164,213,529) (162,262,979) (148,320,447)Finance Costs 2(b)Governance (32,339) (33,440) (39,054)Community Amenities (438,235) (443,120) (489,954)Recreation and Culture (662,707) (728,130) (637,679)Transport (297,100) (512,791) (392,082)Other Property and Services (375,488) (389,270) (453,233)
(1,805,869) (2,106,751) (2,012,002)
25,410,220 19,767,590 33,059,213Profit/(Loss) On Asset Disposals 11(a)Governance (289,932) - 3,115Law, Order and Public Safety (3,047) - -Health (3,150) - -Education and Welfare (20,180) - -Recreation and Culture (971,371) (2,479,560) 693,987Transport (22,275) - 497,413Economic Services (40,370) - -Other Property and Services 214,942 (16,530) -
11(a) (1,135,383) (2,496,090) 1,194,515Non-Operating Grants, Subsidies & ContributionsGovernance 168,873 245,570 201,375Law, Order and Public Safety 223,499 169,390 30,000Community Amenities 10,562,070 13,006,950 18,413,231Recreation and Culture 1,267,582 1,872,500 9,601,314Transport 28,490,147 18,600,940 36,099,176
40,712,171 33,895,350 64,345,096Land Ceded to CrownCommunity Amenities (1,979,004) (1,586,470) (1,709,513)Transport - - (78,010)
(1,979,004) (1,586,470) (1,787,523)
STATEMENT OF COMPREHENSIVE INCOME BY PROGRAMFor the Year Ended 30 June 2019
Actual Budget Actual(Continued) NOTE 2018/19 2018/19 2017/18
Unrealised Gain from Interest in Joint Venture and Other Financial AssetsGeneral Purpose Funding 4,601,171 5,000,000 4,790,546
Net Result 67,609,175 54,580,380 101,601,849Other Comprehensive IncomeChanges in asset revaluation surplus 12 85,301 - 393,690,028Total Other Comprehensive Income 85,301 - 393,690,028Total Comprehensive Income 67,694,475 54,580,380 495,291,877This statement is to be read in conjunction with the accompanying notes.
For the Year Ended 30 June 2019STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM
Actual ActualNOTE 2018/19 2017/18
$ $
CURRENT ASSETSCash and Cash Equivalents 3(a) 22,970,288 26,431,365 Trade and Other Receivables 5 16,309,329 13,793,719 Other Financial Assets 8 167,871,205 130,998,664 Inventories 6 522,572 570,506 Other Current Assets 7 1,228,469 1,194,669 Assets Classified As Held For Sale 7 5,810,269 7,882,399 TOTAL CURRENT ASSETS 214,712,132 180,871,322
NON-CURRENT ASSETSTrade and Other Receivables 5 2,298,631 2,353,318 Other Financial Assets 8(b) 140,138 123,735 Other Loans and Receivables 8(b) 324,225 395,430 Interest in Joint Venture 21(a) 76,392,781 71,724,264 Property, Plant and Equipment 9 516,881,474 508,154,644 Infrastructure 10 1,464,907,903 1,441,241,017 TOTAL NON-CURRENT ASSETS 2,060,945,152 2,023,992,408
TOTAL ASSETS 2,275,657,284 2,204,863,730
CURRENT LIABILITIESTrade and Other Payables 13 14,501,296 5,550,756 Borrowings 14(a) 6,768,036 7,041,643 Employee Related Provisions 15 15,116,273 14,659,661 TOTAL CURRENT LIABILITIES 36,385,605 27,252,060
NON-CURRENT LIABILITIESTrade and Other Payables 13 4,169,826 3,506,743 Borrowings 14(a) 29,623,828 36,391,864 Employee Related Provisions 15 1,688,083 1,617,598 TOTAL NON-CURRENT LIABILITIES 35,481,737 41,516,205 TOTAL LIABILITIES 71,867,342 68,768,265 NET ASSETS 2,203,789,942 2,136,095,465 EQUITYRetained Surplus 1,088,951,274 1,041,002,644 Reserves - Cash Backed 4 141,828,299 122,167,755 Revaluation Surplus 12 973,010,369 972,925,067 TOTAL EQUITY 2,203,789,942 2,136,095,465
This statement is to be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITIONAs at 30 June 2019
Actual Budget Actual(Continued) NOTE 2018/19 2018/19 2017/18
Unrealised Gain from Interest in Joint Venture and Other Financial AssetsGeneral Purpose Funding 4,601,171 5,000,000 4,790,546
Net Result 67,609,175 54,580,380 101,601,849Other Comprehensive IncomeChanges in asset revaluation surplus 12 85,301 - 393,690,028Total Other Comprehensive Income 85,301 - 393,690,028Total Comprehensive Income 67,694,475 54,580,380 495,291,877This statement is to be read in conjunction with the accompanying notes.
For the Year Ended 30 June 2019STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM
Actual ActualNOTE 2018/19 2017/18
$ $
CURRENT ASSETSCash and Cash Equivalents 3(a) 22,970,288 26,431,365 Trade and Other Receivables 5 16,309,329 13,793,719 Other Financial Assets 8 167,871,205 130,998,664 Inventories 6 522,572 570,506 Other Current Assets 7 1,228,469 1,194,669 Assets Classified As Held For Sale 7 5,810,269 7,882,399 TOTAL CURRENT ASSETS 214,712,132 180,871,322
NON-CURRENT ASSETSTrade and Other Receivables 5 2,298,631 2,353,318 Other Financial Assets 8(b) 140,138 123,735 Other Loans and Receivables 8(b) 324,225 395,430 Interest in Joint Venture 21(a) 76,392,781 71,724,264 Property, Plant and Equipment 9 516,881,474 508,154,644 Infrastructure 10 1,464,907,903 1,441,241,017 TOTAL NON-CURRENT ASSETS 2,060,945,152 2,023,992,408
TOTAL ASSETS 2,275,657,284 2,204,863,730
CURRENT LIABILITIESTrade and Other Payables 13 14,501,296 5,550,756 Borrowings 14(a) 6,768,036 7,041,643 Employee Related Provisions 15 15,116,273 14,659,661 TOTAL CURRENT LIABILITIES 36,385,605 27,252,060
NON-CURRENT LIABILITIESTrade and Other Payables 13 4,169,826 3,506,743 Borrowings 14(a) 29,623,828 36,391,864 Employee Related Provisions 15 1,688,083 1,617,598 TOTAL NON-CURRENT LIABILITIES 35,481,737 41,516,205 TOTAL LIABILITIES 71,867,342 68,768,265 NET ASSETS 2,203,789,942 2,136,095,465 EQUITYRetained Surplus 1,088,951,274 1,041,002,644 Reserves - Cash Backed 4 141,828,299 122,167,755 Revaluation Surplus 12 973,010,369 972,925,067 TOTAL EQUITY 2,203,789,942 2,136,095,465
This statement is to be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITIONAs at 30 June 2019
RE
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Actual Budget ActualNOTE 2018/19 2018/19 2017/18
$ $ $CASH FLOWS FROM OPERATING ACTIVITIESReceiptsRates 129,131,954 127,563,090 124,244,272 Operating Grants, Subsidies and Contributions 9,586,342 9,653,000 10,384,547 Fees and Charges 40,497,851 40,184,690 37,957,699 Service Charges 701 - 1,235,034 Interest Received 6,793,883 5,666,840 5,249,849 Goods and Services Tax Received 4,168,698 5,669,167 5,076,697 Other Revenue 2,861,718 730,782 2,510,989
193,041,147 189,467,569 186,659,087 PaymentsEmployee Costs (74,640,926) (78,914,450) (72,177,943) Materials and Contracts (29,403,873) (37,236,352) (45,503,530) Utility Charges (6,065,967) (7,451,748) (6,565,614) Interest Expenses (1,805,869) (2,106,750) (2,012,002) Insurance Paid (2,194,957) (607,020) (676,575) Goods and Services Tax Paid (4,072,453) (5,327,200) (5,413,618) Other Expenditure (1,302,612) (1,594,650) (1,790,624)
(119,486,657) (133,238,170) (134,139,906) Net Cash Provided By (Used In) Operating Activities 16 73,554,490 56,229,399 52,519,181 Cash Flows From Investing ActivitiesPayments for Development of Assets Held for Sale 7 (718,515) - (35,380) Payments for Purchase of
Property, Plant & Equipment (23,694,805) (40,534,920) (17,438,381) Payments for Construction of Infrastructure (30,400,160) (57,355,160) (44,053,226) Developers Contributions: Cash 7,927,065 8,342,240 12,781,392 Proceeds from Matured Term Deposits 251,300,000 350,000,000 243,700,000 Investments in Term Deposits (288,199,999) (350,000,000) (264,100,000) Non-Operating Grants, Subsidies and Contributions 8,656,261 8,138,400 16,160,271 Transfer from Trust Funds 36,706 186,000 454,025 Bonds and Deposits Movements 663,083 - 743,004 Proceeds from Sale of Property, Plant & Equipment 4,271,861 9,990,330 2,700,803 Proceeds from Disposal of Financial Assets 1,552 - 4,810
Net Cash Provided By (Used In) Investing Activities (70,156,951) (71,233,110) (49,082,682)
Cash Flows From Financing ActivitiesRepayment of Borrowings 14(b) (7,041,643) (7,602,580) (6,306,982) Proceeds from New Borrowings 14(d) - 13,970,000 2,755,000 Self Supporting Loans - Repayments 98,665 98,660 82,931 ESL Movements 84,362 - (300,058)
Net Cash Provided By (Used In) Financing Activities (6,858,616) 6,466,080 (3,769,109)
Net Increase (Decrease) In Cash Held (3,461,077) (8,537,631) (332,610)
Cash at Beginning of Year 26,431,365 30,318,861 26,763,976 Cash and Cash Equivalents at the End of the Year 16 22,970,288 21,781,230 26,431,365
This statement is to be read in conjunction with the accompanying notes.
STATEMENT OF CASH FLOWSFor the Year Ended 30 June 2019
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Actual Budget ActualNOTE 2018/19 2018/19 2017/18
$ $ $CASH FLOWS FROM OPERATING ACTIVITIESReceiptsRates 129,131,954 127,563,090 124,244,272 Operating Grants, Subsidies and Contributions 9,586,342 9,653,000 10,384,547 Fees and Charges 40,497,851 40,184,690 37,957,699 Service Charges 701 - 1,235,034 Interest Received 6,793,883 5,666,840 5,249,849 Goods and Services Tax Received 4,168,698 5,669,167 5,076,697 Other Revenue 2,861,718 730,782 2,510,989
193,041,147 189,467,569 186,659,087 PaymentsEmployee Costs (74,640,926) (78,914,450) (72,177,943) Materials and Contracts (29,403,873) (37,236,352) (45,503,530) Utility Charges (6,065,967) (7,451,748) (6,565,614) Interest Expenses (1,805,869) (2,106,750) (2,012,002) Insurance Paid (2,194,957) (607,020) (676,575) Goods and Services Tax Paid (4,072,453) (5,327,200) (5,413,618) Other Expenditure (1,302,612) (1,594,650) (1,790,624)
(119,486,657) (133,238,170) (134,139,906) Net Cash Provided By (Used In) Operating Activities 16 73,554,490 56,229,399 52,519,181 Cash Flows From Investing ActivitiesPayments for Development of Assets Held for Sale 7 (718,515) - (35,380) Payments for Purchase of
Property, Plant & Equipment (23,694,805) (40,534,920) (17,438,381) Payments for Construction of Infrastructure (30,400,160) (57,355,160) (44,053,226) Developers Contributions: Cash 7,927,065 8,342,240 12,781,392 Proceeds from Matured Term Deposits 251,300,000 350,000,000 243,700,000 Investments in Term Deposits (288,199,999) (350,000,000) (264,100,000) Non-Operating Grants, Subsidies and Contributions 8,656,261 8,138,400 16,160,271 Transfer from Trust Funds 36,706 186,000 454,025 Bonds and Deposits Movements 663,083 - 743,004 Proceeds from Sale of Property, Plant & Equipment 4,271,861 9,990,330 2,700,803 Proceeds from Disposal of Financial Assets 1,552 - 4,810
Net Cash Provided By (Used In) Investing Activities (70,156,951) (71,233,110) (49,082,682)
Cash Flows From Financing ActivitiesRepayment of Borrowings 14(b) (7,041,643) (7,602,580) (6,306,982) Proceeds from New Borrowings 14(d) - 13,970,000 2,755,000 Self Supporting Loans - Repayments 98,665 98,660 82,931 ESL Movements 84,362 - (300,058)
Net Cash Provided By (Used In) Financing Activities (6,858,616) 6,466,080 (3,769,109)
Net Increase (Decrease) In Cash Held (3,461,077) (8,537,631) (332,610)
Cash at Beginning of Year 26,431,365 30,318,861 26,763,976 Cash and Cash Equivalents at the End of the Year 16 22,970,288 21,781,230 26,431,365
This statement is to be read in conjunction with the accompanying notes.
STATEMENT OF CASH FLOWSFor the Year Ended 30 June 2019
Actual Budget ActualNOTE 2018/19 2018/19 2017/18
$ $ $Operating RevenueService Charges 24(c) 701 - 1,235,034 Fees and Charges 2(a) 40,497,851 40,184,690 37,819,225 Specified Area Rates/Other Rate Revenue 24(a) 7,606,144 6,425,478 7,704,759 Operating Grants, Subsidies and Contributions 2(a) 10,818,921 9,653,000 10,384,547 Interest Earnings 2(a) 6,793,883 5,666,840 5,663,681 Other Revenue 2,911,634 774,760 2,510,989 Operating Revenues 68,629,134 62,704,768 65,318,235
Operating ExpensesEmployee Costs (75,248,272) (78,944,450) (73,850,225) Materials and Contracts (38,203,936) (37,256,770) (31,794,053) Utility Charges (6,065,967) (7,447,360) (6,565,614) Depreciation on Non-Current Assets 11(b) (41,197,785) (36,412,730) (34,386,358) Interest Expense 2(b) (1,805,869) (2,106,750) (2,012,002) Insurance Expense (2,194,957) (607,020) (676,575) Other Expenses (1,302,612) (1,594,650) (1,790,624) Operating Expenses (166,019,398) (164,369,730) (151,075,451)
Net from Operating Activities (97,390,264) (101,664,962) (85,757,216)
Non Cash Items(Profit)/Loss on Disposal of Assets 1,135,384 - - Movement in Deferred Rates (Non Current) 54,687 (201,540) (289,736) Movements in Bonds and Deposit (Non-Current) 663,083 - 743,004 Movement in Employee Provisions and Adjustments 1,502,913 746,920 2,517,359 Write Back Depreciation 41,197,785 36,412,730 34,386,358 Exclude Non-Cash Amounts 44,553,852 36,958,110 37,356,985
Capital WorksPurchase/construction of Infrastructure Assets 10(b) (30,400,160) (57,355,160) (44,053,226) Purchase/construction of Other Capital Assets 9(b) (23,694,805) (40,534,920) (17,438,381) Proceeds from Sale of Fixed Assets 11(a) 1,732,430 9,990,330 2,700,803 Capital Grants, Subsidies and Contributions 2(a) 8,656,261 7,952,400 16,160,271 Developer Contribution Plans: Cash Contribution 2(a) 7,927,065 8,342,240 12,781,392 Developer Contribution Plans: In Kind 2(a) 2,636,417 4,664,710 5,631,839 In Kind Developer Contribution: Other 2(a) 21,455,722 12,750,000 29,317,569 Infrastructure Assets Contributed by Developers 10(b) (22,113,135) (15,828,240) (33,161,885) Land Ceded to the Crown (1,979,004) (1,586,470) (1,787,523) Amount Attributable to Capital Works Transactions (35,779,209) (71,605,110) (29,849,141)
Debt ManagementProceeds from New Loans 14(d) - 13,970,000 2,755,000 Repayment of Loans 14(b) (7,041,643) (7,602,580) (6,306,982) Contributions to Debt 71,205 98,660 82,931 Amount Attributable to Debt Management (6,970,438) 6,466,080 (3,469,051)
RATE SETTING STATEMENT For the Year Ended 30 June 2019
Actual Budget ActualNOTE 2018/19 2018/19 2017/18
RATE SETTING STATEMENT For the Year Ended 30 June 2019
Other Funding TransactionsProfit/(Loss) on Investments 18 1,552 - 4,810 Transfers to/from Trust 2(a)&27 36,706 186,000 454,025 Transfers from Reserves (Restricted Assets) 4 26,999,502 39,838,760 25,101,096 Transfers to Reserves (Restricted Assets) 4 (46,660,051) (43,372,340) (48,067,182) Amount Attributable to Other Funding (19,622,292) (3,347,580) (22,507,251)
Opening Funds 1 July - Surplus 37,207,149 11,811,422 23,359,395 Less Closing Funds 30 June - Surplus 25 44,849,198 50,512 37,207,149 Net Current Assets (Less Restricted) (7,642,049) 11,760,910 (13,847,754)
Shortfall to be made up from General Rates 24(a) 122,850,399 121,432,552 118,073,428
This statement is to be read in conjunction with the accompanying notes.
Actual Budget ActualNOTE 2018/19 2018/19 2017/18
$ $ $Operating RevenueService Charges 24(c) 701 - 1,235,034 Fees and Charges 2(a) 40,497,851 40,184,690 37,819,225 Specified Area Rates/Other Rate Revenue 24(a) 7,606,144 6,425,478 7,704,759 Operating Grants, Subsidies and Contributions 2(a) 10,818,921 9,653,000 10,384,547 Interest Earnings 2(a) 6,793,883 5,666,840 5,663,681 Other Revenue 2,911,634 774,760 2,510,989 Operating Revenues 68,629,134 62,704,768 65,318,235
Operating ExpensesEmployee Costs (75,248,272) (78,944,450) (73,850,225) Materials and Contracts (38,203,936) (37,256,770) (31,794,053) Utility Charges (6,065,967) (7,447,360) (6,565,614) Depreciation on Non-Current Assets 11(b) (41,197,785) (36,412,730) (34,386,358) Interest Expense 2(b) (1,805,869) (2,106,750) (2,012,002) Insurance Expense (2,194,957) (607,020) (676,575) Other Expenses (1,302,612) (1,594,650) (1,790,624) Operating Expenses (166,019,398) (164,369,730) (151,075,451)
Net from Operating Activities (97,390,264) (101,664,962) (85,757,216)
Non Cash Items(Profit)/Loss on Disposal of Assets 1,135,384 - - Movement in Deferred Rates (Non Current) 54,687 (201,540) (289,736) Movements in Bonds and Deposit (Non-Current) 663,083 - 743,004 Movement in Employee Provisions and Adjustments 1,502,913 746,920 2,517,359 Write Back Depreciation 41,197,785 36,412,730 34,386,358 Exclude Non-Cash Amounts 44,553,852 36,958,110 37,356,985
Capital WorksPurchase/construction of Infrastructure Assets 10(b) (30,400,160) (57,355,160) (44,053,226) Purchase/construction of Other Capital Assets 9(b) (23,694,805) (40,534,920) (17,438,381) Proceeds from Sale of Fixed Assets 11(a) 1,732,430 9,990,330 2,700,803 Capital Grants, Subsidies and Contributions 2(a) 8,656,261 7,952,400 16,160,271 Developer Contribution Plans: Cash Contribution 2(a) 7,927,065 8,342,240 12,781,392 Developer Contribution Plans: In Kind 2(a) 2,636,417 4,664,710 5,631,839 In Kind Developer Contribution: Other 2(a) 21,455,722 12,750,000 29,317,569 Infrastructure Assets Contributed by Developers 10(b) (22,113,135) (15,828,240) (33,161,885) Land Ceded to the Crown (1,979,004) (1,586,470) (1,787,523) Amount Attributable to Capital Works Transactions (35,779,209) (71,605,110) (29,849,141)
Debt ManagementProceeds from New Loans 14(d) - 13,970,000 2,755,000 Repayment of Loans 14(b) (7,041,643) (7,602,580) (6,306,982) Contributions to Debt 71,205 98,660 82,931 Amount Attributable to Debt Management (6,970,438) 6,466,080 (3,469,051)
RATE SETTING STATEMENT For the Year Ended 30 June 2019
Actual Budget ActualNOTE 2018/19 2018/19 2017/18
RATE SETTING STATEMENT For the Year Ended 30 June 2019
Other Funding TransactionsProfit/(Loss) on Investments 18 1,552 - 4,810 Transfers to/from Trust 2(a)&27 36,706 186,000 454,025 Transfers from Reserves (Restricted Assets) 4 26,999,502 39,838,760 25,101,096 Transfers to Reserves (Restricted Assets) 4 (46,660,051) (43,372,340) (48,067,182) Amount Attributable to Other Funding (19,622,292) (3,347,580) (22,507,251)
Opening Funds 1 July - Surplus 37,207,149 11,811,422 23,359,395 Less Closing Funds 30 June - Surplus 25 44,849,198 50,512 37,207,149 Net Current Assets (Less Restricted) (7,642,049) 11,760,910 (13,847,754)
Shortfall to be made up from General Rates 24(a) 122,850,399 121,432,552 118,073,428
This statement is to be read in conjunction with the accompanying notes.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
Critical Accounting Estimates
The Local Government Reporting Entity
Current and Non-Current Classification
Bonds Payable
Goods and Services Tax (GST)
Rounding Off Figures
Comparative Figures
In the process of reporting on the local government as a single unit, all transactions and balances between those funds (for example, loans and transfers between funds) have been eliminated.All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those monies appears at Note 27 to these financial statements.
The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the City’s operational cycle. In the case of liabilities where the City does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current, even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current or non-current based on the City's intentions to release for sale.
Bonds payable are recognised when the City becomes obliged to make future payments subject to a specific condition(s) being adhered to by the payee based on the City's intentions to release for sale.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables in the Statement of Financial Position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the ATO are presented as operating cash flows.
All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest dollar. Amounts are presented in Australian Dollars.
Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year.When the City applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements that has a material effect on the Statement of Financial Position, an additional (third) Statement of Financial Position, as at the beginning of the preceding period, in addition to the minimum comparative financial statements, is presented.
All funds through which the City controls resources to carry on its functions have been included in the financial statements forming part of this financial report.
The financial report comprises general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities) and Interpretations of the Australian Accounting Standards Board, and the Local Government Act 1995 and accompanying regulations.
Accounting policies which have been adopted in the preparation of this financial report have been consistently applied unless stated otherwise. Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities.
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budget Comparative Figures
Superannuation
Description of Programs
General Purpose FundingObjective: To collect revenue to allow for the provision of services.Activities: Rates, general purpose government grants and interest revenue.Governance
Law, Order and Public SafetyObjective: To provide services to help ensure a safer community.
HealthObjective: To provide an operational framework for good community health.
Education and WelfareObjective: To meet the needs of the community in these areas.
HousingObjective: To help ensure adequate housing.Activities: Maintain and administer Elvire Chalets.Community AmenitiesObjective: Provide services required by the community.
Receation and Culture
TransportObjective: To provide effective and efficient transport services to the community.
Economic ServicesObjective: To help promote the Municipality and improve its economic wellbeing.
Other Property and Services
The City contributes to a number of Superannuation Funds on behalf of employees. All funds to which the City contributes are defined contribution plans.
Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the original budget estimate for the relevant item of disclosure.
Activities: Public works overheads, plant and equipment operations and activities not reported in the above programs.
Objective: To provide a decision making process for the efficient allocation of scarce resources.Activities: Administration and operation of facilities and services to members of council. Other costs that relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council services.
Activities: Supervision of various by-laws, fire prevention, emergency services and animal control.
Activities: Food and water quality, pest control, immunisation services, child health services and health education.
Activities: Management and support for families, children, youth and the aged within the Community by providing Youth, Aged and Family Centres. Home and Community Aged Care Program, Junior Council and assistance to schools.
Activities: Rubbish collection services and disposal of waste, urban stormwater drainage, protection of environment, town planning and regional development and other community amenities (bus shelters, public toilets).
Council operations as disclosed in this financial report encompass the following service orientated activities and programs:
Objective: To establish and efficiently manage infrastructure and resources which will help the social wellbeing of the community.Activities: Maintenance of public halls, civic centre, recreation and aquatic centres, parks and reserves, libraries, heritage and culture.
Activities: Construction and maintenance of roads, footpaths, bridges, street cleaning and lighting, traffic lights, road verges, street scaping and depot maintenance.
Activities: The regulation and provision of tourism, area promotion, building control, noxious weeds and vermin control.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
Critical Accounting Estimates
The Local Government Reporting Entity
Current and Non-Current Classification
Bonds Payable
Goods and Services Tax (GST)
Rounding Off Figures
Comparative Figures
In the process of reporting on the local government as a single unit, all transactions and balances between those funds (for example, loans and transfers between funds) have been eliminated.All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those monies appears at Note 27 to these financial statements.
The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the City’s operational cycle. In the case of liabilities where the City does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current, even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current or non-current based on the City's intentions to release for sale.
Bonds payable are recognised when the City becomes obliged to make future payments subject to a specific condition(s) being adhered to by the payee based on the City's intentions to release for sale.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables in the Statement of Financial Position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the ATO are presented as operating cash flows.
All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest dollar. Amounts are presented in Australian Dollars.
Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year.When the City applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements that has a material effect on the Statement of Financial Position, an additional (third) Statement of Financial Position, as at the beginning of the preceding period, in addition to the minimum comparative financial statements, is presented.
All funds through which the City controls resources to carry on its functions have been included in the financial statements forming part of this financial report.
The financial report comprises general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities) and Interpretations of the Australian Accounting Standards Board, and the Local Government Act 1995 and accompanying regulations.
Accounting policies which have been adopted in the preparation of this financial report have been consistently applied unless stated otherwise. Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities.
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budget Comparative Figures
Superannuation
Description of Programs
General Purpose FundingObjective: To collect revenue to allow for the provision of services.Activities: Rates, general purpose government grants and interest revenue.Governance
Law, Order and Public SafetyObjective: To provide services to help ensure a safer community.
HealthObjective: To provide an operational framework for good community health.
Education and WelfareObjective: To meet the needs of the community in these areas.
HousingObjective: To help ensure adequate housing.Activities: Maintain and administer Elvire Chalets.Community AmenitiesObjective: Provide services required by the community.
Receation and Culture
TransportObjective: To provide effective and efficient transport services to the community.
Economic ServicesObjective: To help promote the Municipality and improve its economic wellbeing.
Other Property and Services
The City contributes to a number of Superannuation Funds on behalf of employees. All funds to which the City contributes are defined contribution plans.
Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the original budget estimate for the relevant item of disclosure.
Activities: Public works overheads, plant and equipment operations and activities not reported in the above programs.
Objective: To provide a decision making process for the efficient allocation of scarce resources.Activities: Administration and operation of facilities and services to members of council. Other costs that relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council services.
Activities: Supervision of various by-laws, fire prevention, emergency services and animal control.
Activities: Food and water quality, pest control, immunisation services, child health services and health education.
Activities: Management and support for families, children, youth and the aged within the Community by providing Youth, Aged and Family Centres. Home and Community Aged Care Program, Junior Council and assistance to schools.
Activities: Rubbish collection services and disposal of waste, urban stormwater drainage, protection of environment, town planning and regional development and other community amenities (bus shelters, public toilets).
Council operations as disclosed in this financial report encompass the following service orientated activities and programs:
Objective: To establish and efficiently manage infrastructure and resources which will help the social wellbeing of the community.Activities: Maintenance of public halls, civic centre, recreation and aquatic centres, parks and reserves, libraries, heritage and culture.
Activities: Construction and maintenance of roads, footpaths, bridges, street cleaning and lighting, traffic lights, road verges, street scaping and depot maintenance.
Activities: The regulation and provision of tourism, area promotion, building control, noxious weeds and vermin control.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
2. REVENUE and EXPENSES
(a) Revenue Grant Revenue
Actual Budget Actual2018/19 2018/19 2017/18
Operating Grants, Subsidies and Contributions$ $ $
Governance 130,080 300,000 315,435General Purpose Funding 5,870,472 5,050,000 5,346,413Law, Order and Public Safety 415,453 373,000 486,406Education and Welfare 3,292,113 3,370,600 3,493,803Community Amenities - - 29,320Recreation and Culture 29,000 1,500 21,500Transport 621,422 407,900 340,145Economic Services 50,000 - 150,000Other Property and Services 410,381 150,000 201,524
10,818,921 9,653,000 10,384,547
Non-Operating Grants, Subsidies and Contributions (Incl Gifted Assets)Governance 168,873 245,570 201,375Law, Order and Public Safety 223,499 169,390 30,000Community Amenities 10,562,070 13,006,950 18,413,231Recreation and Culture 1,267,582 1,872,500 9,601,314Transport 28,490,147 18,600,940 36,099,176
40,712,171 33,895,350 64,345,096
Total Grants, Subsidies and Contributions 51,531,092 43,548,350 74,729,643
SIGNIFICANT ACCOUNTING POLICIESGrants, Donations and Other Contributions
2. REVENUE and EXPENSESActual Budget Actual
2018/19 2018/19 2017/18$ $ $
Significant revenueFederal Government Assistance Grant 5,806,636 5,000,000 5,295,281
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed in Note 23.That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operations for the current reporting period.
Grants, subsidies and contributions are included as both operating and non-operating revenues in the Statement of Comprehensive Income:
Grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
2. REVENUE and EXPENSES (Continued)(a) Revenue (Continued)
Actual Budget ActualFees and Charges 2018/19 2018/19 2017/18
$ $ $Governance 366,538 2,800 2,240General Purpose Funding 407,060 408,600 441,729Law, Order and Public Safety 513,825 508,030 542,650Health 347,205 295,000 341,332Education and Welfare 490,531 496,100 509,599Housing 59,730 63,000 63,478Community Amenities 26,114,783 25,752,550 24,025,919Recreation and Culture 7,662,570 7,460,880 6,847,848Transport 1,280,192 1,310,870 1,225,966Economic Services 1,647,280 1,518,000 1,649,058Other Property and Services 1,608,136 2,368,860 2,169,407
40,497,851 40,184,690 37,819,225- - -
Actual Budget ActualInterest earnings 2018/19 2018/19 2017/18Reserve Accounts Interest 3,064,312 2,562,730 2,704,316Rates Instalment and Penalty Interest (refer Note 24(e)) 1,450,224 1,250,000 1,185,196Other Interest Earnings 2,279,346 1,854,110 1,774,169
6,793,883 5,666,840 5,663,681
2019 2019 2018(b) Expenses Actual Budget Actual
$ $ $Auditors Remuneration- Audit of the Annual Financial Report 21,340 50,000 37,000- Audit of Grant Acquittals 1,600 13,000 5,900- Other Services - - 840
22,940 63,000 43,740Interest Expenses (finance costs)Borrowings (refer Note 14(c)) 1,773,530 2,073,310 1,972,948Interest - Self Supporting Loan 32,339 33,440 39,054
1,805,869 2,106,750 2,012,002
Actual Budget ActualDepreciation 2018/19 2018/19 2017/18Buildings 6,536,422 7,042,980 6,296,148Plant and Equipment 4,787,715 5,080,330 3,900,915Furniture and Equipment 1,034,442 1,977,620 2,190,950Infrastructure 28,839,206 22,311,800 21,998,345
41,197,785 36,412,730 34,386,358Detailed allocations are shown in Note 11.(b)
- - -
There were no changes during the year to the amount of the fees or charges detailed in the original budget.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
2. REVENUE and EXPENSES
(a) Revenue Grant Revenue
Actual Budget Actual2018/19 2018/19 2017/18
Operating Grants, Subsidies and Contributions$ $ $
Governance 130,080 300,000 315,435General Purpose Funding 5,870,472 5,050,000 5,346,413Law, Order and Public Safety 415,453 373,000 486,406Education and Welfare 3,292,113 3,370,600 3,493,803Community Amenities - - 29,320Recreation and Culture 29,000 1,500 21,500Transport 621,422 407,900 340,145Economic Services 50,000 - 150,000Other Property and Services 410,381 150,000 201,524
10,818,921 9,653,000 10,384,547
Non-Operating Grants, Subsidies and Contributions (Incl Gifted Assets)Governance 168,873 245,570 201,375Law, Order and Public Safety 223,499 169,390 30,000Community Amenities 10,562,070 13,006,950 18,413,231Recreation and Culture 1,267,582 1,872,500 9,601,314Transport 28,490,147 18,600,940 36,099,176
40,712,171 33,895,350 64,345,096
Total Grants, Subsidies and Contributions 51,531,092 43,548,350 74,729,643
SIGNIFICANT ACCOUNTING POLICIESGrants, Donations and Other Contributions
2. REVENUE and EXPENSESActual Budget Actual
2018/19 2018/19 2017/18$ $ $
Significant revenueFederal Government Assistance Grant 5,806,636 5,000,000 5,295,281
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed in Note 23.That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operations for the current reporting period.
Grants, subsidies and contributions are included as both operating and non-operating revenues in the Statement of Comprehensive Income:
Grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
2. REVENUE and EXPENSES (Continued)(a) Revenue (Continued)
Actual Budget ActualFees and Charges 2018/19 2018/19 2017/18
$ $ $Governance 366,538 2,800 2,240General Purpose Funding 407,060 408,600 441,729Law, Order and Public Safety 513,825 508,030 542,650Health 347,205 295,000 341,332Education and Welfare 490,531 496,100 509,599Housing 59,730 63,000 63,478Community Amenities 26,114,783 25,752,550 24,025,919Recreation and Culture 7,662,570 7,460,880 6,847,848Transport 1,280,192 1,310,870 1,225,966Economic Services 1,647,280 1,518,000 1,649,058Other Property and Services 1,608,136 2,368,860 2,169,407
40,497,851 40,184,690 37,819,225- - -
Actual Budget ActualInterest earnings 2018/19 2018/19 2017/18Reserve Accounts Interest 3,064,312 2,562,730 2,704,316Rates Instalment and Penalty Interest (refer Note 24(e)) 1,450,224 1,250,000 1,185,196Other Interest Earnings 2,279,346 1,854,110 1,774,169
6,793,883 5,666,840 5,663,681
2019 2019 2018(b) Expenses Actual Budget Actual
$ $ $Auditors Remuneration- Audit of the Annual Financial Report 21,340 50,000 37,000- Audit of Grant Acquittals 1,600 13,000 5,900- Other Services - - 840
22,940 63,000 43,740Interest Expenses (finance costs)Borrowings (refer Note 14(c)) 1,773,530 2,073,310 1,972,948Interest - Self Supporting Loan 32,339 33,440 39,054
1,805,869 2,106,750 2,012,002
Actual Budget ActualDepreciation 2018/19 2018/19 2017/18Buildings 6,536,422 7,042,980 6,296,148Plant and Equipment 4,787,715 5,080,330 3,900,915Furniture and Equipment 1,034,442 1,977,620 2,190,950Infrastructure 28,839,206 22,311,800 21,998,345
41,197,785 36,412,730 34,386,358Detailed allocations are shown in Note 11.(b)
- - -
There were no changes during the year to the amount of the fees or charges detailed in the original budget.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
3. CASH and CASH EQUIVALENTS NOTE 2018/19 2017/18$ $
(a) Cash at Bank and on Hand 22,970,288 26,431,365
(b) Financial Assets at Amortised CostTerm Deposits 167,800,000 130,900,000
190,770,288 157,331,365 Comprises: - Unrestricted Cash and Cash Equivalents 44,772,163 31,561,128 - Restricted Cash and Cash Equivalents 145,998,125 125,770,237
190,770,288 157,331,365
Reserve accountsStrategic Development Reserve 4 1,838,511 331,147 City Asset Replacement Reserve 4 11,528,039 10,248,823 Plant and Equipment Reserve 4 16,997,662 11,334,817 General Insurance Reserve 4 1,698,338 500,000 Employee Entitlement Long Service Leave Reserve 4 11,634,234 10,201,805 Aged Services Asset Replacement Reserve 4 286,274 190,835 Ellenbrook Community Facilities Reserve 4 - 61,012 Aveley Community Reserve 4 1,445,463 1,249,760 Waste Management Reserve 4 15,628,506 11,787,722 Midland District Drainage Reserve 4 3,214,596 2,485,757 Hazelmere / Guildford Drainage Reserve 4 1,030,584 1,221,759 Hazelmere Industrial Reserve 4 10,499,366 6,186,814 Gravel Pit Reserve 4 586,117 569,946 Developers Contributions - Ellenbrook Bridge 4 252,245 1,788,260 Developers Contributions - Brabham (Albion) 4 21,466,158 19,767,509 Developers Contributions - Caversham 4 5,354,099 7,368,258 Developers Contributions - Dayton (West Swan East) 4 25,249,331 24,459,377 Developers Contributions - Bennet Springs (West Swan West) 4 4,397,146 4,055,138 Roadwork Contributions 4 2,910,474 2,766,741 Drainage Contributions 4 73,084 69,584 Footpath Contributions 4 242,258 242,258 Malaga Parking Contributions 4 232,870 233,870 Midland Parking Contributions 4 30,770 35,000 Ellenbrook Parking Contributions 4 178,286 178,286 Guildford Parking Contributions 4 10,500 10,500 Public Art 4 350,447 412,385 Unspent Specific Grants 4 4,692,941 4,410,387
141,828,299 122,167,750 Other Restricted Cash and Cash EquivalentsSundry Bonds and Other Deposits 13 4,169,826 3,506,743 Unspent Loans 14(d) - 95,744
Total Restricted Cash and Cash Equivalents 145,998,125 125,770,237
SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents
The following restrictions have been imposed by regulations or other externally imposed requirements:
Cash and Cash Equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial position.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKEDActual Budget Actual
SUMMARY 2018/19 2018/19 2017/18Opening Balance 122,167,750 104,773,899 99,201,670Interest Earnings 3,061,082 2,556,730 2,704,310Transfer to Reserve 43,598,969 40,815,612 45,362,866Transfer from Reserve (26,999,502) (39,838,762) (25,101,096)Closing Balance 141,828,299 108,307,479 122,167,750
Individual Reserve Accounts are as follows:Actual Budget Actual
2018/19 2018/19 2017/18Aged Services Asset Replacement ReservePurpose - to fund the replacement of assets used for the provision of Aged Care Services.
Established in 2001/02
Opening Balance 190,835 105,687 282,837Interest Earnings 7,221 1,501 10,273Transfer to Reserve 251,181 222,290 179,737Transfer from Reserve (162,963) (302,000) (282,012)Closing Balance 286,274 27,478 190,835
Midland District Drainage Development Reserve
Funds are collected by Specified Area Rate matched by a 30c per $1 contribution by the City, and Developercontributions of $64,620 per hectare as per Policy POL-C-040.Established in 1982/1983
Opening Balance 2,485,757 2,054,002 3,898,174Interest Earnings 72,126 48,140 96,803Transfer to Reserve 1,199,617 1,644,678 1,594,554Transfer from Reserve (542,903) (1,531,200) (3,103,774)Closing Balance 3,214,596 2,215,620 2,485,757
General Insurance ReservePurpose - to fund both general insurance claims against the City that are under the excess and the difference betweenstandard workers compensation premium paid and the estimate maximum. General Insurance contributions to the value ofthe difference between the standard premium payable and the actual premium paid. Workers Compensation Insurancecontributions to the value of the difference between the estimated maximum and the actual premium paid; varyingdependant on the number of claims.Established in 1991/1992
Opening Balance 500,000 500,000 500,000Interest Earnings 17,465 7,734 13,947Transfer to Reserve 1,388,258 1,119,300 391,106Transfer from Reserve (207,385) (400,000) (405,053)Closing Balance 1,698,338 1,227,034 500,000
Gravel Pit Rehabilitation ReservePurpose - to fund the remediation of the existing quarry and to acquire land for future quarries.Contributions are made to the value of gravel extracted from the quarry for use on the City's works.
Opening Balance 569,946 456,350 410,871Interest Earnings 13,333 11,376 13,448Transfer to Reserve 2,838 85,000 193,900Transfer from Reserve - - (48,273)Closing Balance 586,117 552,726 569,946
Funds are maintained by an annual transfer of unspent HACC Capital and operating grants and a plant replacement component for plant used on Aged Care services.
Purpose - to fund the renewal and upgrade of the stormwater drainage system in Koongamia, Bellevue, Midland, Woodbridge, Middle Swan, Viveash and Midvale.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
3. CASH and CASH EQUIVALENTS NOTE 2018/19 2017/18$ $
(a) Cash at Bank and on Hand 22,970,288 26,431,365
(b) Financial Assets at Amortised CostTerm Deposits 167,800,000 130,900,000
190,770,288 157,331,365 Comprises: - Unrestricted Cash and Cash Equivalents 44,772,163 31,561,128 - Restricted Cash and Cash Equivalents 145,998,125 125,770,237
190,770,288 157,331,365
Reserve accountsStrategic Development Reserve 4 1,838,511 331,147 City Asset Replacement Reserve 4 11,528,039 10,248,823 Plant and Equipment Reserve 4 16,997,662 11,334,817 General Insurance Reserve 4 1,698,338 500,000 Employee Entitlement Long Service Leave Reserve 4 11,634,234 10,201,805 Aged Services Asset Replacement Reserve 4 286,274 190,835 Ellenbrook Community Facilities Reserve 4 - 61,012 Aveley Community Reserve 4 1,445,463 1,249,760 Waste Management Reserve 4 15,628,506 11,787,722 Midland District Drainage Reserve 4 3,214,596 2,485,757 Hazelmere / Guildford Drainage Reserve 4 1,030,584 1,221,759 Hazelmere Industrial Reserve 4 10,499,366 6,186,814 Gravel Pit Reserve 4 586,117 569,946 Developers Contributions - Ellenbrook Bridge 4 252,245 1,788,260 Developers Contributions - Brabham (Albion) 4 21,466,158 19,767,509 Developers Contributions - Caversham 4 5,354,099 7,368,258 Developers Contributions - Dayton (West Swan East) 4 25,249,331 24,459,377 Developers Contributions - Bennet Springs (West Swan West) 4 4,397,146 4,055,138 Roadwork Contributions 4 2,910,474 2,766,741 Drainage Contributions 4 73,084 69,584 Footpath Contributions 4 242,258 242,258 Malaga Parking Contributions 4 232,870 233,870 Midland Parking Contributions 4 30,770 35,000 Ellenbrook Parking Contributions 4 178,286 178,286 Guildford Parking Contributions 4 10,500 10,500 Public Art 4 350,447 412,385 Unspent Specific Grants 4 4,692,941 4,410,387
141,828,299 122,167,750 Other Restricted Cash and Cash EquivalentsSundry Bonds and Other Deposits 13 4,169,826 3,506,743 Unspent Loans 14(d) - 95,744
Total Restricted Cash and Cash Equivalents 145,998,125 125,770,237
SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents
The following restrictions have been imposed by regulations or other externally imposed requirements:
Cash and Cash Equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial position.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKEDActual Budget Actual
SUMMARY 2018/19 2018/19 2017/18Opening Balance 122,167,750 104,773,899 99,201,670Interest Earnings 3,061,082 2,556,730 2,704,310Transfer to Reserve 43,598,969 40,815,612 45,362,866Transfer from Reserve (26,999,502) (39,838,762) (25,101,096)Closing Balance 141,828,299 108,307,479 122,167,750
Individual Reserve Accounts are as follows:Actual Budget Actual
2018/19 2018/19 2017/18Aged Services Asset Replacement ReservePurpose - to fund the replacement of assets used for the provision of Aged Care Services.
Established in 2001/02
Opening Balance 190,835 105,687 282,837Interest Earnings 7,221 1,501 10,273Transfer to Reserve 251,181 222,290 179,737Transfer from Reserve (162,963) (302,000) (282,012)Closing Balance 286,274 27,478 190,835
Midland District Drainage Development Reserve
Funds are collected by Specified Area Rate matched by a 30c per $1 contribution by the City, and Developercontributions of $64,620 per hectare as per Policy POL-C-040.Established in 1982/1983
Opening Balance 2,485,757 2,054,002 3,898,174Interest Earnings 72,126 48,140 96,803Transfer to Reserve 1,199,617 1,644,678 1,594,554Transfer from Reserve (542,903) (1,531,200) (3,103,774)Closing Balance 3,214,596 2,215,620 2,485,757
General Insurance ReservePurpose - to fund both general insurance claims against the City that are under the excess and the difference betweenstandard workers compensation premium paid and the estimate maximum. General Insurance contributions to the value ofthe difference between the standard premium payable and the actual premium paid. Workers Compensation Insurancecontributions to the value of the difference between the estimated maximum and the actual premium paid; varyingdependant on the number of claims.Established in 1991/1992
Opening Balance 500,000 500,000 500,000Interest Earnings 17,465 7,734 13,947Transfer to Reserve 1,388,258 1,119,300 391,106Transfer from Reserve (207,385) (400,000) (405,053)Closing Balance 1,698,338 1,227,034 500,000
Gravel Pit Rehabilitation ReservePurpose - to fund the remediation of the existing quarry and to acquire land for future quarries.Contributions are made to the value of gravel extracted from the quarry for use on the City's works.
Opening Balance 569,946 456,350 410,871Interest Earnings 13,333 11,376 13,448Transfer to Reserve 2,838 85,000 193,900Transfer from Reserve - - (48,273)Closing Balance 586,117 552,726 569,946
Funds are maintained by an annual transfer of unspent HACC Capital and operating grants and a plant replacement component for plant used on Aged Care services.
Purpose - to fund the renewal and upgrade of the stormwater drainage system in Koongamia, Bellevue, Midland, Woodbridge, Middle Swan, Viveash and Midvale.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18Plant and Equipment ReservePurpose - to fund motor vehicles, plant and equipment associated with the City's works and services.Funds are maintained by an allocation to the value of the plant replacement component on all City's works andservices.
Opening Balance 11,334,817 9,012,666 6,208,660Interest Earnings 313,614 246,309 251,111Transfer to Reserve 7,291,736 7,611,760 7,534,833Transfer from Reserve (1,942,505) (4,037,972) (2,659,787)Closing Balance 16,997,662 12,832,763 11,334,817
Hazelmere/Guildford Drainage ReservePurpose - to fund the renewal and upgrade of the stormwater drainage system in Hazelmere and Guildford.Funds are collected by Specified Area Rate matched by a 30c per $1 contribution by the City, and DeveloperContributions of $64,620 per hectare as per Policy POL-C-040.
Opening Balance 1,221,758 1,082,832 929,841Interest Earnings 32,850 23,219 31,859Transfer to Reserve 474,576 605,314 655,710Transfer from Reserve (698,600) (735,000) (395,652)Closing Balance 1,030,584 976,365 1,221,758
Waste Management ReservePurpose - to fund the operations and development of the City's sanitation service, including capital acquisitions.Funds are maintained by an annual allocation to the value of the net 'surplus' in the sanitation operations and a plantreplacement component for plant used by Waste Management services.Established in 1992/93Formed by the amalgamation of the Sanitation Reserve and West Midland Rehabilitation.
Opening Balance 11,787,723 11,132,431 7,406,910Interest Earnings 321,668 268,408 264,268Transfer to Reserve 7,227,964 5,422,680 4,895,282Transfer from Reserve (3,708,849) (4,150,446) (778,737)Closing Balance 15,628,506 12,673,073 11,787,723
City Asset Replacement ReservePurpose - to fund the renewal and replacement of the City's infrastructure and capital assets. Funds are maintained by an annual contribution equivalent to 3% of Rate Revenue operations and a plantreplacement component for plant used by Waste Management services.Established in 2006/07.
Opening Balance 10,248,823 9,304,094 8,413,172Interest Earnings 280,351 217,885 288,454Transfer to Reserve 3,760,916 3,965,210 3,818,684Transfer from Reserve (2,762,051) (3,462,519) (2,271,487)Closing Balance 11,528,039 10,024,670 10,248,823
Ellenbrook Community Facilities ReservePurpose - to provide community facilities and services within the Ellenbrook Estate. Contributions from the Ellenbrook Joint Venture matched 1:1 by City contributions.Established in 1994/95.
Opening Balance 61,012 136,996 271,377Interest Earnings 218 2,340 4,644Transfer to Reserve 72,669 182,140 136,759Transfer from Reserve (133,899) (250,915) (351,768)Closing Balance - 70,561 61,012
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18
Aveley Community ReservePurpose - to provide community facilities and services within Vale and the region. Contributions from the Developers of Vale matched 1:1 by City contributions.Established in 2005/06.
Opening Balance 1,249,760 1,042,028 1,679,857Interest Earnings 30,279 20,310 45,744Transfer to Reserve 270,273 315,000 269,574Transfer from Reserve (104,849) (618,087) (745,415)Closing Balance 1,445,463 759,251 1,249,760
Employee Entitlements - LSL ReservePurpose - to fund long service leave requirements. To be used as required.
Opening Balance 10,201,806 9,168,771 7,713,072Interest Earnings 254,002 226,920 246,259Transfer to Reserve 1,178,426 520,000 2,242,475Transfer from Reserve - - - Closing Balance 11,634,234 9,915,691 10,201,806
Urban Growth Corridor Sub-Regional ContributionsPurpose - to fund land acquisition, construction of infrastructure and administration costs in the Swan Urban GrowthCorridor, which comprises the Development Contribution Areas of Brabham, Caversham, Dayton and West SwanWest.Funded by Developers contributionsEstablished in 2010/11Brabham - AlbionOpening Balance 19,767,508 18,213,748 16,411,604Interest Earnings 525,157 478,580 435,170Transfer to Reserve 1,575,555 2,176,050 3,389,193Transfer from Reserve (402,062) (6,142,597) (468,459)Closing Balance 21,466,157 14,725,781 19,767,508
CavershamOpening Balance 7,368,259 5,739,636 7,266,845Interest Earnings 190,394 104,710 153,312Transfer to Reserve 1,626,730 1,122,010 1,921,440Transfer from Reserve (3,831,284) (3,511,105) (1,973,338)Closing Balance 5,354,099 3,455,251 7,368,259
Dayton - West Swan EastOpening Balance 24,459,377 22,208,857 23,420,087Interest Earnings 671,700 539,840 584,795Transfer to Reserve 4,455,884 2,689,560 3,084,683Transfer from Reserve (4,337,630) (10,181,107) (2,630,188)Closing Balance 25,249,331 15,257,150 24,459,377
Bennet Springs - West Swan EastOpening Balance 4,055,138 2,281,810 - Interest Earnings 79,641 100,310 43,209Transfer to Reserve 268,896 2,354,620 4,114,958Transfer from Reserve (6,529) (113,085) (103,029)Closing Balance 4,397,146 4,623,655 4,055,138Total Urban Growth CorridorContributions 56,466,733 38,061,837 55,650,282
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18Plant and Equipment ReservePurpose - to fund motor vehicles, plant and equipment associated with the City's works and services.Funds are maintained by an allocation to the value of the plant replacement component on all City's works andservices.
Opening Balance 11,334,817 9,012,666 6,208,660Interest Earnings 313,614 246,309 251,111Transfer to Reserve 7,291,736 7,611,760 7,534,833Transfer from Reserve (1,942,505) (4,037,972) (2,659,787)Closing Balance 16,997,662 12,832,763 11,334,817
Hazelmere/Guildford Drainage ReservePurpose - to fund the renewal and upgrade of the stormwater drainage system in Hazelmere and Guildford.Funds are collected by Specified Area Rate matched by a 30c per $1 contribution by the City, and DeveloperContributions of $64,620 per hectare as per Policy POL-C-040.
Opening Balance 1,221,758 1,082,832 929,841Interest Earnings 32,850 23,219 31,859Transfer to Reserve 474,576 605,314 655,710Transfer from Reserve (698,600) (735,000) (395,652)Closing Balance 1,030,584 976,365 1,221,758
Waste Management ReservePurpose - to fund the operations and development of the City's sanitation service, including capital acquisitions.Funds are maintained by an annual allocation to the value of the net 'surplus' in the sanitation operations and a plantreplacement component for plant used by Waste Management services.Established in 1992/93Formed by the amalgamation of the Sanitation Reserve and West Midland Rehabilitation.
Opening Balance 11,787,723 11,132,431 7,406,910Interest Earnings 321,668 268,408 264,268Transfer to Reserve 7,227,964 5,422,680 4,895,282Transfer from Reserve (3,708,849) (4,150,446) (778,737)Closing Balance 15,628,506 12,673,073 11,787,723
City Asset Replacement ReservePurpose - to fund the renewal and replacement of the City's infrastructure and capital assets. Funds are maintained by an annual contribution equivalent to 3% of Rate Revenue operations and a plantreplacement component for plant used by Waste Management services.Established in 2006/07.
Opening Balance 10,248,823 9,304,094 8,413,172Interest Earnings 280,351 217,885 288,454Transfer to Reserve 3,760,916 3,965,210 3,818,684Transfer from Reserve (2,762,051) (3,462,519) (2,271,487)Closing Balance 11,528,039 10,024,670 10,248,823
Ellenbrook Community Facilities ReservePurpose - to provide community facilities and services within the Ellenbrook Estate. Contributions from the Ellenbrook Joint Venture matched 1:1 by City contributions.Established in 1994/95.
Opening Balance 61,012 136,996 271,377Interest Earnings 218 2,340 4,644Transfer to Reserve 72,669 182,140 136,759Transfer from Reserve (133,899) (250,915) (351,768)Closing Balance - 70,561 61,012
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18
Aveley Community ReservePurpose - to provide community facilities and services within Vale and the region. Contributions from the Developers of Vale matched 1:1 by City contributions.Established in 2005/06.
Opening Balance 1,249,760 1,042,028 1,679,857Interest Earnings 30,279 20,310 45,744Transfer to Reserve 270,273 315,000 269,574Transfer from Reserve (104,849) (618,087) (745,415)Closing Balance 1,445,463 759,251 1,249,760
Employee Entitlements - LSL ReservePurpose - to fund long service leave requirements. To be used as required.
Opening Balance 10,201,806 9,168,771 7,713,072Interest Earnings 254,002 226,920 246,259Transfer to Reserve 1,178,426 520,000 2,242,475Transfer from Reserve - - - Closing Balance 11,634,234 9,915,691 10,201,806
Urban Growth Corridor Sub-Regional ContributionsPurpose - to fund land acquisition, construction of infrastructure and administration costs in the Swan Urban GrowthCorridor, which comprises the Development Contribution Areas of Brabham, Caversham, Dayton and West SwanWest.Funded by Developers contributionsEstablished in 2010/11Brabham - AlbionOpening Balance 19,767,508 18,213,748 16,411,604Interest Earnings 525,157 478,580 435,170Transfer to Reserve 1,575,555 2,176,050 3,389,193Transfer from Reserve (402,062) (6,142,597) (468,459)Closing Balance 21,466,157 14,725,781 19,767,508
CavershamOpening Balance 7,368,259 5,739,636 7,266,845Interest Earnings 190,394 104,710 153,312Transfer to Reserve 1,626,730 1,122,010 1,921,440Transfer from Reserve (3,831,284) (3,511,105) (1,973,338)Closing Balance 5,354,099 3,455,251 7,368,259
Dayton - West Swan EastOpening Balance 24,459,377 22,208,857 23,420,087Interest Earnings 671,700 539,840 584,795Transfer to Reserve 4,455,884 2,689,560 3,084,683Transfer from Reserve (4,337,630) (10,181,107) (2,630,188)Closing Balance 25,249,331 15,257,150 24,459,377
Bennet Springs - West Swan EastOpening Balance 4,055,138 2,281,810 - Interest Earnings 79,641 100,310 43,209Transfer to Reserve 268,896 2,354,620 4,114,958Transfer from Reserve (6,529) (113,085) (103,029)Closing Balance 4,397,146 4,623,655 4,055,138Total Urban Growth CorridorContributions 56,466,733 38,061,837 55,650,282
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18Developers Contributions - Ellenbrook BridgePurpose - to fund the construction of a bridge over the Ellenbrook (Ellenbrook Bridge) in the vicinity of Lot 9000Railway Parade, Upper Swan.Funded by Developers contributionsEstablished in 2013/14Opening Balance 1,788,261 1,998,424 1,955,534Interest Earnings 24,468 48,359 58,258Transfer to Reserve - - 271,139Transfer from Reserve (1,560,484) - (496,670)Closing Balance 252,245 2,046,783 1,788,261
Hazelmere Industrial Area Infrastructure Reserve Purpose - to fund the renewal and upgrade of infrastructure in the Hazelmere Industrial Area.Funds are maintained by a Specified Area Rate charged to properties in the area, matched by a $3 to $1 City'scontribution.Established in 2013/14Opening Balance 6,186,814 5,798,489 4,053,893Interest Earnings 221,598 155,539 145,416Transfer to Reserve 5,071,092 5,405,000 5,250,977Transfer from Reserve (980,138) (3,362,529) (3,263,472)Closing Balance 10,499,366 7,996,499 6,186,814
Strategic Development ReservePurpose - to fund the acquisition of freehold properties for the purpose of the City's strategic development.Funds are maintained by contributions from the City and the proceeds from asset sales at the Council's discretion.Established in 2010/11
Opening Balance 331,147 359,954 3,365,822Interest Earnings 4,994 55,250 17,346Transfer to Reserve 2,540,986 4,425,000 429,810Transfer from Reserve (1,038,615) (300,000) (3,481,831)Closing Balance 1,838,511 4,540,204 331,147
Restricted Cash ReservePurpose - to hold the City's received restricted cash contributions; to fund works of the same purpose for which thecontributions were given.Funds are maintained by transfer of unspent contributions.Established in 1994/95Opening Balance 8,359,011 4,177,126 5,013,110Transfer to Reserve 4,941,376 950,000 4,988,052Transfer from Reserve (4,578,755) (740,200) (1,642,151)Closing Balance 8,721,632 4,386,926 8,359,011
Total Cash Backed Reserves 141,828,299 108,307,481 122,167,752
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
5. TRADE RECEIVABLESActual Actual
2018/19 2017/18Current $ $Rates and ESL receivable 12,171,080 10,578,927 GST Receivable 1,031,932 1,128,177 Debtors: Trade 1,143,548 1,136,641 Debtors: Other 32,223 - Provision - Expected Credit Loss (600,222) (613,937) Accrued Revenue 2,530,768 1,563,911
16,309,329 13,793,719 Non-currentPensioner's Rates and ESL Deferred 2,298,631 2,353,318
2,298,631 2,353,318
SIGNIFICANT ACCOUNTING POLICIES
Trade and Other Receivables
Impairment and Risk Exposure
Classification and Subsequent Measurement
Previous Accounting Policy: Impairment of Trade Receivables
6. INVENTORIES Actual Actual2018/19 2017/18
Current $ $Materials at Cost 522,572 570,506
SIGNIFICANT ACCOUNTING POLICIESGeneral
Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business.Trade receivables are recognised at original invoice amount less any allowances for uncollectible amounts (i.e. impairment). The carrying amount of net trade receivables is equivalent to fair value as it is due for settlement within 30 days.
Inventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. Individual receivables which were known to be uncollectible were written off by reducing the carrying amount directly. The other receivables were assessed collectively to determine whether there was objective evidence that an impairment had been incurred but not yet identified. For these receivables the estimated impairment losses were recognised in a separate provision for impairment.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.
Trade receivables are held with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate method.
Due to the short term nature of current receivables, their carrying amount is considered to be the same as their fair value. Non-current receivables are indexed to inflation, any difference between the face value and fair value is considered immaterial.
Information about the impairment of trade receivables and their exposure to credit risk and interest rate risk can be found in Note 26.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
4. RESERVES - CASH BACKED … continuedActual Budget Actual
2018/19 2018/19 2017/18Developers Contributions - Ellenbrook BridgePurpose - to fund the construction of a bridge over the Ellenbrook (Ellenbrook Bridge) in the vicinity of Lot 9000Railway Parade, Upper Swan.Funded by Developers contributionsEstablished in 2013/14Opening Balance 1,788,261 1,998,424 1,955,534Interest Earnings 24,468 48,359 58,258Transfer to Reserve - - 271,139Transfer from Reserve (1,560,484) - (496,670)Closing Balance 252,245 2,046,783 1,788,261
Hazelmere Industrial Area Infrastructure Reserve Purpose - to fund the renewal and upgrade of infrastructure in the Hazelmere Industrial Area.Funds are maintained by a Specified Area Rate charged to properties in the area, matched by a $3 to $1 City'scontribution.Established in 2013/14Opening Balance 6,186,814 5,798,489 4,053,893Interest Earnings 221,598 155,539 145,416Transfer to Reserve 5,071,092 5,405,000 5,250,977Transfer from Reserve (980,138) (3,362,529) (3,263,472)Closing Balance 10,499,366 7,996,499 6,186,814
Strategic Development ReservePurpose - to fund the acquisition of freehold properties for the purpose of the City's strategic development.Funds are maintained by contributions from the City and the proceeds from asset sales at the Council's discretion.Established in 2010/11
Opening Balance 331,147 359,954 3,365,822Interest Earnings 4,994 55,250 17,346Transfer to Reserve 2,540,986 4,425,000 429,810Transfer from Reserve (1,038,615) (300,000) (3,481,831)Closing Balance 1,838,511 4,540,204 331,147
Restricted Cash ReservePurpose - to hold the City's received restricted cash contributions; to fund works of the same purpose for which thecontributions were given.Funds are maintained by transfer of unspent contributions.Established in 1994/95Opening Balance 8,359,011 4,177,126 5,013,110Transfer to Reserve 4,941,376 950,000 4,988,052Transfer from Reserve (4,578,755) (740,200) (1,642,151)Closing Balance 8,721,632 4,386,926 8,359,011
Total Cash Backed Reserves 141,828,299 108,307,481 122,167,752
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
5. TRADE RECEIVABLESActual Actual
2018/19 2017/18Current $ $Rates and ESL receivable 12,171,080 10,578,927 GST Receivable 1,031,932 1,128,177 Debtors: Trade 1,143,548 1,136,641 Debtors: Other 32,223 - Provision - Expected Credit Loss (600,222) (613,937) Accrued Revenue 2,530,768 1,563,911
16,309,329 13,793,719 Non-currentPensioner's Rates and ESL Deferred 2,298,631 2,353,318
2,298,631 2,353,318
SIGNIFICANT ACCOUNTING POLICIES
Trade and Other Receivables
Impairment and Risk Exposure
Classification and Subsequent Measurement
Previous Accounting Policy: Impairment of Trade Receivables
6. INVENTORIES Actual Actual2018/19 2017/18
Current $ $Materials at Cost 522,572 570,506
SIGNIFICANT ACCOUNTING POLICIESGeneral
Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business.Trade receivables are recognised at original invoice amount less any allowances for uncollectible amounts (i.e. impairment). The carrying amount of net trade receivables is equivalent to fair value as it is due for settlement within 30 days.
Inventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. Individual receivables which were known to be uncollectible were written off by reducing the carrying amount directly. The other receivables were assessed collectively to determine whether there was objective evidence that an impairment had been incurred but not yet identified. For these receivables the estimated impairment losses were recognised in a separate provision for impairment.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.
Trade receivables are held with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate method.
Due to the short term nature of current receivables, their carrying amount is considered to be the same as their fair value. Non-current receivables are indexed to inflation, any difference between the face value and fair value is considered immaterial.
Information about the impairment of trade receivables and their exposure to credit risk and interest rate risk can be found in Note 26.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
7. OTHER ASSETS and ASSETS CLASSIFIED AS HELD FOR SALE
Actual Actual2018/19 2017/18
Other Current Assets $ $Prepayments 1,228,469 1,194,669Land Held for Sale 5,810,269 7,882,399
7,038,738 9,077,068Land and Buildings Classified as Held for SaleMovements in Carrying AmountsCarrying amount at 1 July 7,882,399 7,847,019Additions 718,515 35,380Disposals (2,790,645) - Carrying amount at 30 June 5,810,269 7,882,399
SIGNIFICANT ACCOUNTING POLICIESOther Current Assets
Land Held for ResaleLand held for development and resale is valued at the lower of cost and net realisable value. Cost includes the cost of acquisition, development, borrowing costs and holding costs until completion of development.
During the year the City sold two lots on The Avenue, Midland as part of the redevelopment of the Midland Oval Redevelopment (see Note 22 for details).
Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
The fair value of land and buildings was determined using the sales comparison approach using comparable properties in the area. This is a level 2 measurement as per the fair value hierarchy set out in Note 11.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if significant risks and rewards, and effective control over the land, are passed onto the buyer at this point.
Land held for resale is classified as current except where it is held as non-current based on the Council’s intentions to release for sale.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
8. OTHER FINANCIAL ASSETSActual Actual
2018/19 2017/18(a) Current Assets $ $
Other Financial Assets at Amortised Cost 167,800,000 130,900,000 Other Loans and Receivables 71,205 98,664
167,871,205 130,998,664
Other Financial Assets at Amortised Cost - Financial Assets at Amortised Cost - Term Deposits 167,800,000 130,900,000
167,800,000 130,900,000 Financial assets previously classified as loans and receivables
Loans Receivable - Clubs/Institutions 71,205 98,664 71,205 98,664
(b) Non-current assetsFinancial Assets at Fair Value through Profit and Loss
Units in Local Government House Trust 140,138 123,735 140,138 123,735
Opening Balance 123,735 123,809 Unrealised Gain(Loss) Investment in WALGA House 16,403 (74)
City of Swan's Equity (8 Units) 140,138 123,735
Financial Assets Previously Classified as Loans and ReceivablesLoans Receivable - Clubs/Institutions 324,225 395,430
324,225 395,430
SIGNIFICANT ACCOUNTING POLICIES
Other Financial Assets at Amortised Cost
The City classifies the following financial assets at fair value through profit and loss:
Impairment and riskInformation regarding impairment and exposure to risk can be found in Note 26.
The equity the City has in the Local Government House Trust is as a consequence of a contribution towards the cost of purchasing Local Government House. The total contribution by all Councils toward the cost of the WALGA building was $582,000. There are 620 units in the Local Government House Trust. City of Swan's Equity is 8 Units.
- Debt investments which do not qualify for measurement at either amortised cost or fair value through other comprehensive income.- Equity investments which the City has not elected to recognise and "fair value gains and losses through other comprehensive income."Available-for-sale financial assets were non-derivative financial assets that were either not suitable to be classified as other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.Non-derivative financial assets with fixed or determinable payments that were not quoted in an active market and are solely payments of principal and interest were classified as loans and receivables and are subsequently measured at amortised cost, using the effective interest rate method.
- The contractual terms give rise to cash flows that are solely payments of principal and interest.
- The asset is held within a business model whose objective is to collect the contractual cash flows, and
The City classifies financial assets at amortised cost if both of the following criteria are met:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
7. OTHER ASSETS and ASSETS CLASSIFIED AS HELD FOR SALE
Actual Actual2018/19 2017/18
Other Current Assets $ $Prepayments 1,228,469 1,194,669Land Held for Sale 5,810,269 7,882,399
7,038,738 9,077,068Land and Buildings Classified as Held for SaleMovements in Carrying AmountsCarrying amount at 1 July 7,882,399 7,847,019Additions 718,515 35,380Disposals (2,790,645) - Carrying amount at 30 June 5,810,269 7,882,399
SIGNIFICANT ACCOUNTING POLICIESOther Current Assets
Land Held for ResaleLand held for development and resale is valued at the lower of cost and net realisable value. Cost includes the cost of acquisition, development, borrowing costs and holding costs until completion of development.
During the year the City sold two lots on The Avenue, Midland as part of the redevelopment of the Midland Oval Redevelopment (see Note 22 for details).
Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
The fair value of land and buildings was determined using the sales comparison approach using comparable properties in the area. This is a level 2 measurement as per the fair value hierarchy set out in Note 11.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if significant risks and rewards, and effective control over the land, are passed onto the buyer at this point.
Land held for resale is classified as current except where it is held as non-current based on the Council’s intentions to release for sale.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
8. OTHER FINANCIAL ASSETSActual Actual
2018/19 2017/18(a) Current Assets $ $
Other Financial Assets at Amortised Cost 167,800,000 130,900,000 Other Loans and Receivables 71,205 98,664
167,871,205 130,998,664
Other Financial Assets at Amortised Cost - Financial Assets at Amortised Cost - Term Deposits 167,800,000 130,900,000
167,800,000 130,900,000 Financial assets previously classified as loans and receivables
Loans Receivable - Clubs/Institutions 71,205 98,664 71,205 98,664
(b) Non-current assetsFinancial Assets at Fair Value through Profit and Loss
Units in Local Government House Trust 140,138 123,735 140,138 123,735
Opening Balance 123,735 123,809 Unrealised Gain(Loss) Investment in WALGA House 16,403 (74)
City of Swan's Equity (8 Units) 140,138 123,735
Financial Assets Previously Classified as Loans and ReceivablesLoans Receivable - Clubs/Institutions 324,225 395,430
324,225 395,430
SIGNIFICANT ACCOUNTING POLICIES
Other Financial Assets at Amortised Cost
The City classifies the following financial assets at fair value through profit and loss:
Impairment and riskInformation regarding impairment and exposure to risk can be found in Note 26.
The equity the City has in the Local Government House Trust is as a consequence of a contribution towards the cost of purchasing Local Government House. The total contribution by all Councils toward the cost of the WALGA building was $582,000. There are 620 units in the Local Government House Trust. City of Swan's Equity is 8 Units.
- Debt investments which do not qualify for measurement at either amortised cost or fair value through other comprehensive income.- Equity investments which the City has not elected to recognise and "fair value gains and losses through other comprehensive income."Available-for-sale financial assets were non-derivative financial assets that were either not suitable to be classified as other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.Non-derivative financial assets with fixed or determinable payments that were not quoted in an active market and are solely payments of principal and interest were classified as loans and receivables and are subsequently measured at amortised cost, using the effective interest rate method.
- The contractual terms give rise to cash flows that are solely payments of principal and interest.
- The asset is held within a business model whose objective is to collect the contractual cash flows, and
The City classifies financial assets at amortised cost if both of the following criteria are met:
Actual ($) Actual ($)2018/19 2017/18
9 FIXED ASSETS - CARRYING AMOUNTS(a) PROPERTY, PLANT and EQUIPMENT
Land Independent Valuation 2017 248,918,070 248,918,070 Additions after Valuation at Cost 4,479,118 2,261,950Closing Balance 253,397,188 251,180,020
Buildings Independent Valuation 2017 304,890,759 304,890,759 Additions after Valuation at Cost 23,610,635 18,239,969Less Accumulated Depreciation (103,127,475) (98,999,420)Closing Balance 225,373,919 224,131,308
Computing - Management Valuation 2016 13,680,634 13,680,634 Additions after Valuation at Cost 5,239,596 2,291,351Less Accumulated Depreciation (14,205,508) (14,100,073)Closing Balance 4,714,722 1,871,912
Furniture - Management Valuation 2016 2,003,342 2,003,342 Additions after Valuation at Cost 407,751 551,485Less Accumulated Depreciation (978,458) (1,469,934)Closing Balance 1,432,635 1,084,893
Plant - Management Valuation 2016 10,788,859 10,788,859 Additions after Valuation at Cost 12,616,638 9,250,786Less Accumulated Depreciation (8,635,131) (5,635,870)Closing Balance 14,770,366 14,403,775
Vehicles - Management Valuation 2016 2,810,087 2,810,087 Additions after Valuation at Cost 4,920,936 5,230,221Less Accumulated Depreciation (2,523,063) (2,156,026)Closing Balance 5,207,960 5,884,282
Artworks - Independent Valuation 2017 477,296 700,730 Additions after Valuation at Cost 57,576 8,182Closing Balance 534,872 708,912
Work in Progress - Cost 11,449,811 8,889,541
Total Carrying Amount Property Plant and Equipment 516,881,474 508,154,643
NOTES TO, and FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30-Jun-2019
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Inc
rem
ents
/ (
Dec
rem
ents
) tr
ansf
erre
d to
Rev
alua
tion
Sur
plus
-
--
--
--
--
Impa
irm
ent
(Los
ses)
/ R
ever
sals
--
--
--
--
-D
epre
ciat
ion
(Exp
ense
)-
(6,5
36,4
22)
(828
,901
)(2
05,5
41)
(3,5
83,7
15)
(1,2
04,0
00)
--
(12,
358,
579)
Tran
sfer
s-
5,33
2,53
73,
163,
147
916,
810
148,
995
-2,
316
(9,5
63,8
05)
-C
arry
ing
am
oun
t at
30
Ju
ne
20
19
253,
397,
188
225,
373,
919
4,71
4,72
21,
432,
634
14,7
70,3
665,
207,
961
534,
872
11,4
49,8
1051
6,88
1,47
3
Actual ($) Actual ($)2018/19 2017/18
9 FIXED ASSETS - CARRYING AMOUNTS(a) PROPERTY, PLANT and EQUIPMENT
Land Independent Valuation 2017 248,918,070 248,918,070 Additions after Valuation at Cost 4,479,118 2,261,950Closing Balance 253,397,188 251,180,020
Buildings Independent Valuation 2017 304,890,759 304,890,759 Additions after Valuation at Cost 23,610,635 18,239,969Less Accumulated Depreciation (103,127,475) (98,999,420)Closing Balance 225,373,919 224,131,308
Computing - Management Valuation 2016 13,680,634 13,680,634 Additions after Valuation at Cost 5,239,596 2,291,351Less Accumulated Depreciation (14,205,508) (14,100,073)Closing Balance 4,714,722 1,871,912
Furniture - Management Valuation 2016 2,003,342 2,003,342 Additions after Valuation at Cost 407,751 551,485Less Accumulated Depreciation (978,458) (1,469,934)Closing Balance 1,432,635 1,084,893
Plant - Management Valuation 2016 10,788,859 10,788,859 Additions after Valuation at Cost 12,616,638 9,250,786Less Accumulated Depreciation (8,635,131) (5,635,870)Closing Balance 14,770,366 14,403,775
Vehicles - Management Valuation 2016 2,810,087 2,810,087 Additions after Valuation at Cost 4,920,936 5,230,221Less Accumulated Depreciation (2,523,063) (2,156,026)Closing Balance 5,207,960 5,884,282
Artworks - Independent Valuation 2017 477,296 700,730 Additions after Valuation at Cost 57,576 8,182Closing Balance 534,872 708,912
Work in Progress - Cost 11,449,811 8,889,541
Total Carrying Amount Property Plant and Equipment 516,881,474 508,154,643
NOTES TO, and FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30-Jun-2019
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
9.
PR
OP
ER
TY
, P
LAN
T a
nd
EQ
UIP
ME
NT
(b)
Mo
vem
ents
in
Car
ryin
g A
mo
un
tsM
ovem
ent
in t
he c
arry
ing
amou
nts
of e
ach
clas
s of
pro
pert
y, p
lant
and
equ
ipm
ent
betw
een
the
begi
nnin
g an
d th
e en
d of
the
cur
rent
fin
anci
al y
ear.
Lan
dB
uild
ing
sC
omp
uti
ng
Fu
rnit
ure
P
lan
t V
ehic
les
Art
wor
ks
Wor
k in
P
rog
ress
To
tal
Bal
ance
at
1 J
uly
20
17
Car
ryin
g Am
ount
as
at 1
Jul
y 20
1724
8,91
8,07
021
2,18
7,48
52,
748,
760
1,21
8,19
614
,756
,238
5,17
6,26
870
0,73
018
,635
,297
504,
341,
044
Add
itio
ns2,
261,
950
4,57
3,64
876
0,59
930
8,94
72,
659,
840
2,90
4,42
78,
182
3,96
0,78
817
,438
,381
(Dis
posa
ls)
--
(4,5
68)
(4,7
26)
(484
,295
)(1
,012
,699
)-
-(1
,506
,288
) R
eval
uation
Inc
rem
ents
/ (
Dec
rem
ents
) tr
ansf
erre
d to
Rev
alua
tion
Sur
plus
-
--
--
--
--
Impa
irm
ent
(Los
ses)
/ R
ever
sals
--
--
--
--
-D
epre
ciat
ion
(Exp
ense
)-
(6,2
96,1
48)
(1,7
37,2
51)
(453
,699
)(2
,717
,202
)(1
,183
,713
)-
-(1
2,38
8,01
3)Tr
ansf
ers
-13
,666
,321
104,
372
16,1
7518
9,19
3-
-(1
3,70
6,54
4)26
9,51
7C
arry
ing
am
oun
t at
30
Ju
ne
20
18
251,
180,
020
224,
131,
306
1,87
1,91
21,
084,
893
14,4
03,7
745,
884,
283
708,
912
8,88
9,54
150
8,15
4,64
1
Bal
ance
at
1 J
uly
20
18
Add
itio
ns2,
241,
062
2,56
4,73
868
6,79
819
2,84
14,
483,
012
1,35
2,88
549
,394
12,1
24,0
7423
,694
,805
(Dis
posa
ls)
(23,
894)
(118
,240
)(1
78,2
34)
(556
,369
)(6
81,7
00)
(825
,207
)(2
25,7
50)
-(2
,609
,394
) R
eval
uation
Inc
rem
ents
/ (
Dec
rem
ents
) tr
ansf
erre
d to
Rev
alua
tion
Sur
plus
-
--
--
--
--
Impa
irm
ent
(Los
ses)
/ R
ever
sals
--
--
--
--
-D
epre
ciat
ion
(Exp
ense
)-
(6,5
36,4
22)
(828
,901
)(2
05,5
41)
(3,5
83,7
15)
(1,2
04,0
00)
--
(12,
358,
579)
Tran
sfer
s-
5,33
2,53
73,
163,
147
916,
810
148,
995
-2,
316
(9,5
63,8
05)
-C
arry
ing
am
oun
t at
30
Ju
ne
20
19
253,
397,
188
225,
373,
919
4,71
4,72
21,
432,
634
14,7
70,3
665,
207,
961
534,
872
11,4
49,8
1051
6,88
1,47
3
Actual ($) Actual ($)2018/19 2017/18
10 FIXED ASSETS - CARRYING AMOUNTS(a) INFRASTRUCTURE
Roads - Management Valuation 2018 917,838,433 917,838,433 Additions after Valuation at Cost 13,454,104 - Less Accumulated Depreciation (185,706,812) (176,824,458)Closing Balance 745,585,725 741,013,975
Drainage - Management Valuation 2018 499,314,562 499,314,562 Additions after Valuation at Cost 8,592,491 - Less Accumulated Depreciation (174,313,203) (168,399,075)Closing Balance 333,593,850 330,915,487
Footpaths - Management Valuation 2018 113,817,899 113,817,899 Additions after Valuation at Cost 2,466,816 - Less Accumulated Depreciation (28,960,158) (26,422,186)Closing Balance 87,324,557 87,395,713
Parks and Reserves - Management Valuation 2018 217,601,125 217,601,125 Additions after Valuation at Cost 16,931,422 - Less Accumulated Depreciation (70,985,999) (64,392,219)Closing Balance 163,546,548 153,208,906
Other Infrastructure - Management Valuation 2018 152,686,454 152,686,454 Additions after Valuation at Cost 11,186,121 - Less Accumulated Depreciation (56,537,217) (51,650,461)Closing Balance 107,335,358 101,035,993
- Work in Progress - Cost 27,521,864 27,670,944
Total Carrying Amount Infrastructure 1,464,907,902 1,441,241,018
NOTES TO, and FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30-Jun-2019
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
10
.IN
FRA
STR
UC
TUR
E(b
)M
ovem
ents
in C
arry
ing
Am
oun
tsM
ovem
ent
in t
he c
arry
ing
amou
nts
of e
ach
clas
s of
infr
astr
uctu
re b
etw
een
the
begi
nnin
g an
d th
e en
d of
the
cur
rent
fin
anci
al y
ear.
Ro
ads
Dra
inag
e F
oo
tpat
hs/
C
ycle
way
s P
arks
an
d
Res
erve
s O
ther
In
fras
tru
ctu
re
Wo
rk in
P
rog
ress
To
tal
Bal
ance
at
1 J
uly
20
17
Car
ryin
g am
ount
as
at 1
Jul
y 20
1750
9,01
9,06
3
19
7,98
7,76
1
52
,081
,008
13
9,06
0,86
8
77
,660
,928
16
,658
,163
992,
467,
791
Addi
tions
28,0
57,1
16
16,4
66,5
44
3,63
3,64
6
8,47
7,86
5
2,83
6,65
5
17,7
43,2
85
77
,215
,111
Rev
alua
tion
Incr
emen
ts /
(D
ecre
men
ts)
tran
sfer
red
to R
eval
uation
Sur
plus
20
7,51
3,34
4
11
9,14
4,40
2
32
,786
,850
12
,304
,738
22
,076
,644
-
39
3,82
5,97
8
Dep
reci
atio
n (E
xpen
se)
(7,7
30,2
10)
(2
,842
,570
)
(1,1
05,7
91)
(7
,680
,654
)
(2,6
39,1
19)
-
(2
1,99
8,34
4)
Tr
ansf
ers
4,15
4,66
1
159,
350
-
1,04
6,08
9
1,10
0,88
7
(6,7
30,5
03)
(269
,516
)
C
arry
ing
Am
ou
nt
at 3
0 J
un
e 2
01
874
1,01
3,97
4
33
0,91
5,48
7
87
,395
,713
15
3,20
8,90
6
10
1,03
5,99
5
27
,670
,945
1,44
1,24
1,02
0
Rec
lass
ifica
tion
of A
sset
Cat
egor
y(3
,254
,020
)
-
-
527,
718
2,
726,
302
-
-
Car
ryin
g A
mo
un
t at
30
Ju
ne
20
18
Aft
er
Rec
lass
ific
atio
n
73
7,7
59
,95
4
3
30
,91
5,4
87
87
,39
5,7
13
15
3,7
36
,62
4
1
03
,76
2,2
97
27
,67
0,9
45
1
,44
1,2
41
,02
0
Bal
ance
at
1 J
uly
20
18
Addi
tions
15,7
54,2
23
8,59
2,49
0
2,46
6,81
5
10,1
08,5
22
1,72
8,73
9
13,8
62,5
05
52
,513
,295
(Dis
posa
ls)
-
-
-
(7
,206
)
-
-
(7,2
06)
Dep
reci
atio
n (E
xpen
se)
(11,
159,
618)
(5,9
14,1
28)
(2
,537
,971
)
(6,4
07,7
89)
(2
,819
,699
)
-
(28,
839,
206)
Tran
sfer
s3,
231,
167
-
-
6,
116,
397
4,
664,
022
(1
4,01
1,58
6)-
Car
ryin
g a
mo
un
t at
30
Ju
ne
20
19
745,
585,
725
333,
593,
849
87,3
24,5
57
163,
546,
548
107,
335,
359
27,5
21,8
64
1,
464,
907,
903
Actual ($) Actual ($)2018/19 2017/18
10 FIXED ASSETS - CARRYING AMOUNTS(a) INFRASTRUCTURE
Roads - Management Valuation 2018 917,838,433 917,838,433 Additions after Valuation at Cost 13,454,104 - Less Accumulated Depreciation (185,706,812) (176,824,458)Closing Balance 745,585,725 741,013,975
Drainage - Management Valuation 2018 499,314,562 499,314,562 Additions after Valuation at Cost 8,592,491 - Less Accumulated Depreciation (174,313,203) (168,399,075)Closing Balance 333,593,850 330,915,487
Footpaths - Management Valuation 2018 113,817,899 113,817,899 Additions after Valuation at Cost 2,466,816 - Less Accumulated Depreciation (28,960,158) (26,422,186)Closing Balance 87,324,557 87,395,713
Parks and Reserves - Management Valuation 2018 217,601,125 217,601,125 Additions after Valuation at Cost 16,931,422 - Less Accumulated Depreciation (70,985,999) (64,392,219)Closing Balance 163,546,548 153,208,906
Other Infrastructure - Management Valuation 2018 152,686,454 152,686,454 Additions after Valuation at Cost 11,186,121 - Less Accumulated Depreciation (56,537,217) (51,650,461)Closing Balance 107,335,358 101,035,993
- Work in Progress - Cost 27,521,864 27,670,944
Total Carrying Amount Infrastructure 1,464,907,902 1,441,241,018
NOTES TO, and FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30-Jun-2019
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
10
.IN
FRA
STR
UC
TUR
E(b
)M
ovem
ents
in C
arry
ing
Am
oun
tsM
ovem
ent
in t
he c
arry
ing
amou
nts
of e
ach
clas
s of
infr
astr
uctu
re b
etw
een
the
begi
nnin
g an
d th
e en
d of
the
cur
rent
fin
anci
al y
ear.
Ro
ads
Dra
inag
e F
oo
tpat
hs/
C
ycle
way
s P
arks
an
d
Res
erve
s O
ther
In
fras
tru
ctu
re
Wo
rk in
P
rog
ress
To
tal
Bal
ance
at
1 J
uly
20
17
Car
ryin
g am
ount
as
at 1
Jul
y 20
1750
9,01
9,06
3
19
7,98
7,76
1
52
,081
,008
13
9,06
0,86
8
77
,660
,928
16
,658
,163
992,
467,
791
Addi
tions
28,0
57,1
16
16,4
66,5
44
3,63
3,64
6
8,47
7,86
5
2,83
6,65
5
17,7
43,2
85
77
,215
,111
Rev
alua
tion
Incr
emen
ts /
(D
ecre
men
ts)
tran
sfer
red
to R
eval
uation
Sur
plus
20
7,51
3,34
4
11
9,14
4,40
2
32
,786
,850
12
,304
,738
22
,076
,644
-
39
3,82
5,97
8
Dep
reci
atio
n (E
xpen
se)
(7,7
30,2
10)
(2
,842
,570
)
(1,1
05,7
91)
(7
,680
,654
)
(2,6
39,1
19)
-
(2
1,99
8,34
4)
Tr
ansf
ers
4,15
4,66
1
159,
350
-
1,04
6,08
9
1,10
0,88
7
(6,7
30,5
03)
(269
,516
)
C
arry
ing
Am
ou
nt
at 3
0 J
un
e 2
01
874
1,01
3,97
4
33
0,91
5,48
7
87
,395
,713
15
3,20
8,90
6
10
1,03
5,99
5
27
,670
,945
1,44
1,24
1,02
0
Rec
lass
ifica
tion
of A
sset
Cat
egor
y(3
,254
,020
)
-
-
527,
718
2,
726,
302
-
-
Car
ryin
g A
mo
un
t at
30
Ju
ne
20
18
Aft
er
Rec
lass
ific
atio
n
73
7,7
59
,95
4
3
30
,91
5,4
87
87
,39
5,7
13
15
3,7
36
,62
4
1
03
,76
2,2
97
27
,67
0,9
45
1
,44
1,2
41
,02
0
Bal
ance
at
1 J
uly
20
18
Addi
tions
15,7
54,2
23
8,59
2,49
0
2,46
6,81
5
10,1
08,5
22
1,72
8,73
9
13,8
62,5
05
52
,513
,295
(Dis
posa
ls)
-
-
-
(7
,206
)
-
-
(7,2
06)
Dep
reci
atio
n (E
xpen
se)
(11,
159,
618)
(5,9
14,1
28)
(2
,537
,971
)
(6,4
07,7
89)
(2
,819
,699
)
-
(28,
839,
206)
Tran
sfer
s3,
231,
167
-
-
6,
116,
397
4,
664,
022
(1
4,01
1,58
6)-
Car
ryin
g a
mo
un
t at
30
Ju
ne
20
19
745,
585,
725
333,
593,
849
87,3
24,5
57
163,
546,
548
107,
335,
359
27,5
21,8
64
1,
464,
907,
903
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
11. PROPERTY, PLANT , EQUIPMENT and INFRASTRUCTURE
SIGNIFICANT ACCOUNTING POLICIESFixed Assets
Land Under Roads
FAIR VALUE - MEASUREMENT
Transfers Policy
Highest and Best Use
Fair value hierarchy
Level 1
Level 2
Level 3
In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the City includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads.
All assets are initially recognised at cost where the fair value of the asset at date of acquisition is equal to or above $5,000 (in accordance with changes in legislation since 26 June 2018). All assets are subsequently revalued in accordance with the mandatory measurement framework.
Each class of fixed assets within either plant and equipment or infrastructure, is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Individual assets acquired between initial recognition and the next revaluation of the asset class in accordance with the mandatory measurement framework, are recognised at cost and disclosed as being at fair value as management believes cost approximates fair value. They are subject to subsequent revaluation at the next anniversary date in accordance with the mandatory measurement framework.
The City measures the following assets and liabilities on a recurring basis:
Property Plant and Equipment - Land, Buildings, Furniture, Vehicles, Plant and Equipment and, Other Assets (Internal Art works).
Infrastructure - Roads, Drainage, Footpaths, Parks/Reserves and Other Infrastructure (including Public Art).
The Policy of the City is to recognise transfers into and transfers out of the fair value hierarchy levels as at the end of the reporting period. There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.
Except for land there were no assets valued where it was assumed that the highest and best use was a use other than their current use. The City owns significant portions of land that has restrictions placed on it due to current zoning for example, being zoned as Parks and Recreation. AASB13 Fair Value Measurement requires that the valuation is based on 'highest and best use' as perceived by other market participants and not entity specific use. Therefore the existing restrictions does not limit the ability to value the land based on if a prudent buyer perceived a reasonable likelihood of success of changing the zoning restrictions.
The Local Government (Financial Management) Regulations 1996 take precedence over Australian Accounting Standards. Regulation 16 prohibits a local government from recognising as assets Crown land that is a public thoroughfare, such as land under roads, and land not owned by but under the control or management of the local government, unless it is a golf course, showground, racecourse or recreational facility of State or regional significance. Consequently, some assets, including land under roads acquired on or after 1 July 2008, have not been recognised in this financial report. This is not in accordance with the requirements of AASB 1051 Land Under Roads paragraph 15 and AASB 116 Property, Plant and Equipment paragraph 7.
The City does not measure any other assets and liabilities at fair value on a non-recurring basis.
Change in Accounting Policy - Asset Capitalisation ThresholdIn accordance with Regulation 17A(5) of the Local Government (Financial Management) Regulation 1996, the City is required to capitalise assets in excess of $5,000 only. The City made a retrospective assessment in respect of previously capitalised assets costing less than $5,000 at the date of acquisition. Based on the assessment performed, the City recognised a loss on disposal of assets with a total written down value of $1,205,742. This was reflected in the Statement of Comprehensive Income for the year.
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Measurements based on unobservable inputs for the asset or liability.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Fair value is the price that the City would receive to sell the asset or would have to pay to transfer a liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurement into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Market approach
Income approach
Cost approach
Valuation Techniques and Inputs Used to Derive Fair Values
Plant and equipment
Asset ClassFair Value Hierarchy
Fair Value at 30 June 2019
Valuation Technique
Basis of Valuation
Date of Last Valuation Inputs Used
Land - Freehold Land 2 253,397,188 Market Independent 30 June 2017
Adjusted market price per square metre.
Land - Vested 2 - Cost Independent 30 June 2017Adjusted market price per square metre.
Buildings - Non-Specialised 2 13,788,356 Market Independent 30 June 2017
Price per square metre. Evidence of market value was obtained from the sales evidence of similar or reference assets. The asset was assessed in terms of the factors relevant to a market participant and a value determined after adjusting the difference in these factors embodied with the asset and the reference assets.
Buildings - Specialised 3 211,585,563 Cost Independent 30 June 2017
Components, useful life assumptions (residual value assumed at nil) unit rates, overall value, consumption scores (including consideration of condition, obsolescence and restrictions) and valuation profiles.
Furniture and Equipment 3 1,432,635 Cost Independent 30 June 2015
Purchase costs, current condition and remaining useful life.
Plant and Equipment 2 13,482,116 Market Management 30 June 2017
Available market information, sales evidence of comparable sales of similar assets.
Plant and Equipment 3 1,288,250 Cost Management 30 June 2017
Available market information, sales evidence of comparable sales of similar assets.
Information Technology 3 4,714,722 Cost Management
Purchase costs, current condition and remaining useful life.
Internal Art Works 3 534,872 Cost Independent 30 June 2017
Purchase costs, current condition and remaining useful life.
Light Fleet Vehicle 2 5,207,960 Market Management 30 June 2017
Market price base on make, size, year of manufacture and condition.
The following table summarises valuation inputs and techniques used to determine the Fair value for each asset class.
Valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.
In accordance with Australian Accounting Standards the City's cash generating non-specialised assets, other than inventories, are assessed at each reporting date to determine whether there is any indication they may be impaired. Where such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Revaluation model ,such as roads, drains, public buildings and the like, no annual assessment of impairment is required. Rather AASB 116.31 applies and revaluations need only be made with sufficient regularity to ensure the carrying value does not differ materially from that which would be determined using fair value at the end of the reporting period.
Valuation techniques that reflect the current replacement cost of the service capacity of an asset. Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Shire gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.
Valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.
Impairment of assets
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
11. PROPERTY, PLANT , EQUIPMENT and INFRASTRUCTURE
SIGNIFICANT ACCOUNTING POLICIESFixed Assets
Land Under Roads
FAIR VALUE - MEASUREMENT
Transfers Policy
Highest and Best Use
Fair value hierarchy
Level 1
Level 2
Level 3
In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the City includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads.
All assets are initially recognised at cost where the fair value of the asset at date of acquisition is equal to or above $5,000 (in accordance with changes in legislation since 26 June 2018). All assets are subsequently revalued in accordance with the mandatory measurement framework.
Each class of fixed assets within either plant and equipment or infrastructure, is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Individual assets acquired between initial recognition and the next revaluation of the asset class in accordance with the mandatory measurement framework, are recognised at cost and disclosed as being at fair value as management believes cost approximates fair value. They are subject to subsequent revaluation at the next anniversary date in accordance with the mandatory measurement framework.
The City measures the following assets and liabilities on a recurring basis:
Property Plant and Equipment - Land, Buildings, Furniture, Vehicles, Plant and Equipment and, Other Assets (Internal Art works).
Infrastructure - Roads, Drainage, Footpaths, Parks/Reserves and Other Infrastructure (including Public Art).
The Policy of the City is to recognise transfers into and transfers out of the fair value hierarchy levels as at the end of the reporting period. There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.
Except for land there were no assets valued where it was assumed that the highest and best use was a use other than their current use. The City owns significant portions of land that has restrictions placed on it due to current zoning for example, being zoned as Parks and Recreation. AASB13 Fair Value Measurement requires that the valuation is based on 'highest and best use' as perceived by other market participants and not entity specific use. Therefore the existing restrictions does not limit the ability to value the land based on if a prudent buyer perceived a reasonable likelihood of success of changing the zoning restrictions.
The Local Government (Financial Management) Regulations 1996 take precedence over Australian Accounting Standards. Regulation 16 prohibits a local government from recognising as assets Crown land that is a public thoroughfare, such as land under roads, and land not owned by but under the control or management of the local government, unless it is a golf course, showground, racecourse or recreational facility of State or regional significance. Consequently, some assets, including land under roads acquired on or after 1 July 2008, have not been recognised in this financial report. This is not in accordance with the requirements of AASB 1051 Land Under Roads paragraph 15 and AASB 116 Property, Plant and Equipment paragraph 7.
The City does not measure any other assets and liabilities at fair value on a non-recurring basis.
Change in Accounting Policy - Asset Capitalisation ThresholdIn accordance with Regulation 17A(5) of the Local Government (Financial Management) Regulation 1996, the City is required to capitalise assets in excess of $5,000 only. The City made a retrospective assessment in respect of previously capitalised assets costing less than $5,000 at the date of acquisition. Based on the assessment performed, the City recognised a loss on disposal of assets with a total written down value of $1,205,742. This was reflected in the Statement of Comprehensive Income for the year.
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Measurements based on unobservable inputs for the asset or liability.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Fair value is the price that the City would receive to sell the asset or would have to pay to transfer a liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurement into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Market approach
Income approach
Cost approach
Valuation Techniques and Inputs Used to Derive Fair Values
Plant and equipment
Asset ClassFair Value Hierarchy
Fair Value at 30 June 2019
Valuation Technique
Basis of Valuation
Date of Last Valuation Inputs Used
Land - Freehold Land 2 253,397,188 Market Independent 30 June 2017
Adjusted market price per square metre.
Land - Vested 2 - Cost Independent 30 June 2017Adjusted market price per square metre.
Buildings - Non-Specialised 2 13,788,356 Market Independent 30 June 2017
Price per square metre. Evidence of market value was obtained from the sales evidence of similar or reference assets. The asset was assessed in terms of the factors relevant to a market participant and a value determined after adjusting the difference in these factors embodied with the asset and the reference assets.
Buildings - Specialised 3 211,585,563 Cost Independent 30 June 2017
Components, useful life assumptions (residual value assumed at nil) unit rates, overall value, consumption scores (including consideration of condition, obsolescence and restrictions) and valuation profiles.
Furniture and Equipment 3 1,432,635 Cost Independent 30 June 2015
Purchase costs, current condition and remaining useful life.
Plant and Equipment 2 13,482,116 Market Management 30 June 2017
Available market information, sales evidence of comparable sales of similar assets.
Plant and Equipment 3 1,288,250 Cost Management 30 June 2017
Available market information, sales evidence of comparable sales of similar assets.
Information Technology 3 4,714,722 Cost Management
Purchase costs, current condition and remaining useful life.
Internal Art Works 3 534,872 Cost Independent 30 June 2017
Purchase costs, current condition and remaining useful life.
Light Fleet Vehicle 2 5,207,960 Market Management 30 June 2017
Market price base on make, size, year of manufacture and condition.
The following table summarises valuation inputs and techniques used to determine the Fair value for each asset class.
Valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.
In accordance with Australian Accounting Standards the City's cash generating non-specialised assets, other than inventories, are assessed at each reporting date to determine whether there is any indication they may be impaired. Where such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Revaluation model ,such as roads, drains, public buildings and the like, no annual assessment of impairment is required. Rather AASB 116.31 applies and revaluations need only be made with sufficient regularity to ensure the carrying value does not differ materially from that which would be determined using fair value at the end of the reporting period.
Valuation techniques that reflect the current replacement cost of the service capacity of an asset. Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Shire gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.
Valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.
Impairment of assets
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Infrastructure
Asset ClassFair Value Hierarchy
Fair Value at 30 June 2019
Valuation Technique
Basis of Valuation
Date of Last Valuation
Roads, Bridges, Drainage 3 1,159,643,288 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Footpath/Cycleway 3 87,324,557 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Carparks, Bus Shelters, Street Lighting 3 15,986,424 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Parks and Reserves 3 163,546,548 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
External Art Works 2 10,885,221 Market Management 30 June 2018
Available market information (including artist reputation, reproduction of art work, historical and cultural significance) sales evidence of comparable sales of similar assets.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
SIGNIFICANT ACCOUNTING POLICIES (continued)Valuation Techniques and Inputs used in the Fair Value MeasurementRecurring fair value measurementsLand
Buildings
Plant and Equipment, Furniture and Vehicles
The majority of the City's buildings are of a "specialised nature" and were valued using the 'Cost' approach utilising Level 3 inputs. This method is based on determining the Replacement Cost of the modern equivalent (or cost reproduction where relevant) and then adjusting for the level of consumed future economic benefit and impairment.
Some of the City's buildings are of a "non specialised nature" and were valued using the 'Market' approach utilising the Level 2 inputs. The 'Market' Approach (Direct Comparison Approach)' utilised evidence of market value that was obtained from the sales evidence of similar or reference buildings. The buildings were assessed in terms of the factors relevant to a market participant and a value determined after adjusting for the difference in these factors embodied with the building and reference buildings.
The remaining service potential was assessed for the depreciable amount of each component short-life and long-life parts. For the short-life part this was based on a consumption rating that primarily considers the component specific factors (such as physical condition and maintenance history) as well as considering obsolescence. This was primarily aimed at estimating the cost to bring the part back to as new' (as a 'market participant would consider when pricing the asset). For the long-life part the valuer uses professional judgement to estimate the level of Remaining Service Potential (RSP%). This effectively is an overall assessment of obsolescence (function, technical and economic) and the impact it may have on a market participants view of price. For example - despite an asset being aged and part way through its lifecycle, providing the asset is expected to be operational for many years to come the impact of obsolescence may be insignificant or minor. Likewise, if there is an expectation that the asset has a limited remaining life the impact of obsolescence will be greater as the asset nears the end of life, summing the value of each component together to determine the Fair Value (Current Replacement Cost).
Level 2 valuation inputs are used to value land valued at 'Market Value'. Sales prices of comparable land sites in close proximity are adjusted for differences in key attributes such as property size. Evidence of market value was obtained from the sales evidence of similar or reference land. The land was assessed in terms of the factors relevant to a market participant and a value determined after adjusting for the difference in these factors embodied with the land and reference land.
With regards to land that is currently zoned Parks, Recreation and/or for Public Purpose, having a restricted use, this type of land was valued using the 'Cost' approach, utilising Level 2 inputs. This required gaining an understanding of the characteristics of the land and determining how much it would cost to acquire the land if it were owned by a third party and the City had to purchase it from that third party. In order for the City of acquire such land it would need to be held by that third party. In order for that third party to hold the land they would need to hold it in freehold title. This means it would not have self imposed hold the land they would need to hold it in freehold title. This means it would not have self imposed restrictions such as the inability for it to be traded. Ultimately the cost should be the same as the market value of the site assuming it was available for sale (therefore it must be held in freehold title) and not subject to any restrictions that can be removed. AASB13 Fair Value Measurement requires that the use.
This approach considers the cost (sourced from cost guides such as Rawlinson's, Cordell and recent construction costs for similar projects) to reproduce or replace similar assets with an asset in new condition, including allowance for installation, less an amount for depreciation in the form of accrued physical wear and tear, economic and functional obsolescence. In accordance with the depreciation requirements of the Property, Plant and Equipment standard (AASB116), "complex assets' are componentised and depreciated separately. This may include further splitting each component into the short-life and long-life parts to differentiate between that part of the component that is renewed and that part which is recycled. As they have a different useful life they are to be depreciated separately. Residual Value was assessed at zero.
Most plant, equipment and vehicle assets are generally valued using the market approach and have been classified as being valued at Level 2 of the fair value hierarchy. The cost approach was utilised for furniture, classified as being valued at level 3 of the fair value hierarchy. Comparable sales and relevant industry market price reference guides were utilised, the most significant inputs into this valuation approach are the make, size, year of manufacture and condition.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Infrastructure
Asset ClassFair Value Hierarchy
Fair Value at 30 June 2019
Valuation Technique
Basis of Valuation
Date of Last Valuation
Roads, Bridges, Drainage 3 1,159,643,288 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Footpath/Cycleway 3 87,324,557 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Carparks, Bus Shelters, Street Lighting 3 15,986,424 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
Parks and Reserves 3 163,546,548 Cost Management 30 June 2018
Components, useful life assumptions (residual value assumed at nil), unit rates, overall value, consumption scores (included consideration of condition, obsolescence and restrictions) and valuation profiles.
External Art Works 2 10,885,221 Market Management 30 June 2018
Available market information (including artist reputation, reproduction of art work, historical and cultural significance) sales evidence of comparable sales of similar assets.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
SIGNIFICANT ACCOUNTING POLICIES (continued)Valuation Techniques and Inputs used in the Fair Value MeasurementRecurring fair value measurementsLand
Buildings
Plant and Equipment, Furniture and Vehicles
The majority of the City's buildings are of a "specialised nature" and were valued using the 'Cost' approach utilising Level 3 inputs. This method is based on determining the Replacement Cost of the modern equivalent (or cost reproduction where relevant) and then adjusting for the level of consumed future economic benefit and impairment.
Some of the City's buildings are of a "non specialised nature" and were valued using the 'Market' approach utilising the Level 2 inputs. The 'Market' Approach (Direct Comparison Approach)' utilised evidence of market value that was obtained from the sales evidence of similar or reference buildings. The buildings were assessed in terms of the factors relevant to a market participant and a value determined after adjusting for the difference in these factors embodied with the building and reference buildings.
The remaining service potential was assessed for the depreciable amount of each component short-life and long-life parts. For the short-life part this was based on a consumption rating that primarily considers the component specific factors (such as physical condition and maintenance history) as well as considering obsolescence. This was primarily aimed at estimating the cost to bring the part back to as new' (as a 'market participant would consider when pricing the asset). For the long-life part the valuer uses professional judgement to estimate the level of Remaining Service Potential (RSP%). This effectively is an overall assessment of obsolescence (function, technical and economic) and the impact it may have on a market participants view of price. For example - despite an asset being aged and part way through its lifecycle, providing the asset is expected to be operational for many years to come the impact of obsolescence may be insignificant or minor. Likewise, if there is an expectation that the asset has a limited remaining life the impact of obsolescence will be greater as the asset nears the end of life, summing the value of each component together to determine the Fair Value (Current Replacement Cost).
Level 2 valuation inputs are used to value land valued at 'Market Value'. Sales prices of comparable land sites in close proximity are adjusted for differences in key attributes such as property size. Evidence of market value was obtained from the sales evidence of similar or reference land. The land was assessed in terms of the factors relevant to a market participant and a value determined after adjusting for the difference in these factors embodied with the land and reference land.
With regards to land that is currently zoned Parks, Recreation and/or for Public Purpose, having a restricted use, this type of land was valued using the 'Cost' approach, utilising Level 2 inputs. This required gaining an understanding of the characteristics of the land and determining how much it would cost to acquire the land if it were owned by a third party and the City had to purchase it from that third party. In order for the City of acquire such land it would need to be held by that third party. In order for that third party to hold the land they would need to hold it in freehold title. This means it would not have self imposed hold the land they would need to hold it in freehold title. This means it would not have self imposed restrictions such as the inability for it to be traded. Ultimately the cost should be the same as the market value of the site assuming it was available for sale (therefore it must be held in freehold title) and not subject to any restrictions that can be removed. AASB13 Fair Value Measurement requires that the use.
This approach considers the cost (sourced from cost guides such as Rawlinson's, Cordell and recent construction costs for similar projects) to reproduce or replace similar assets with an asset in new condition, including allowance for installation, less an amount for depreciation in the form of accrued physical wear and tear, economic and functional obsolescence. In accordance with the depreciation requirements of the Property, Plant and Equipment standard (AASB116), "complex assets' are componentised and depreciated separately. This may include further splitting each component into the short-life and long-life parts to differentiate between that part of the component that is renewed and that part which is recycled. As they have a different useful life they are to be depreciated separately. Residual Value was assessed at zero.
Most plant, equipment and vehicle assets are generally valued using the market approach and have been classified as being valued at Level 2 of the fair value hierarchy. The cost approach was utilised for furniture, classified as being valued at level 3 of the fair value hierarchy. Comparable sales and relevant industry market price reference guides were utilised, the most significant inputs into this valuation approach are the make, size, year of manufacture and condition.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Valuation Techniques and Inputs used in the Fair Value Measurement (Continued)Computer Equipment
Other Assets - Artwork
Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure (Excluding External Art)
External Art
Valuation Processes
The Main Level 3 Inputs Used are Derived and Evaluated as Follows:
Typically, the factors considered at a holistic level include (but are not limited to) the following; functionality, capacity, utilisation, safety and obsolescence, at a component level physical condition and breakage and repair history. Having considered the relevant factors each component is assessed on an appropriate scoring scale. The consumption score methodology is based on assessing the relative level of remaining service potential.
The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and were then updated to take into account the experience and understanding of City’s own engineers, asset management and finance staff. The results of the valuation were further evaluated by confirmation against the City’s own understanding of the assets and the level of remaining service potential.
The City engages external, independent and qualified valuers to assist and determine the fair value of the its land, buildings and Artwork (internal and external). Infrastructure assets are valued using management valuation methodologies.
The relationship between asset consumption rating scale and the level of consumed service potential: Under the cost approach the estimated cost to replace the asset is calculated and then adjusted to take account of accumulated depreciation. In order to achieve this valuation profiles define the relationship between an asset consumption score and the level of remaining service potential for each asset type based on the interrelationship between a range of factors. These factors and their relationship to the fair value require professional judgement and include asset condition, legal and commercial obsolescence, and the determination of key depreciation related assumptions such as residual value (zero), useful life and pattern of consumption of the future economic benefit.
An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. If any variation is considered material a revaluation is undertaken either by comprehensive revaluation or by applying an interim revaluation using appropriate indices.
When assessing the level of remaining service potential or the rate of consumption (utilising a consumption scoring methodology) of that service potential (depreciation) the accounting standards require consideration of a range of factors. These include condition, obsolescence, restrictions and other relevant factors. They can generally be described as being split into two types. Holistic, those that impact at the whole of asset level and component specific those that relate specifically to each component.
Because of the variety of valuation uncertainties, fair value almost always has been determined by utilising inputs of more than one valuation technique this can be likened to an appraisal approach. Fair value judgements have therefore been based on a number of factors such as reputation of the artist, historical/cultural significance, significance of the commission, the significance of the site, if the work is a rare or common representation of the artists' art practice, acquisition cost and physical condition. The appraisal approach is best described as an educated guess as to what price the artwork would fetch in an open or most advantageous market, should one exist.
All Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure assets were valued using Level 3 inputs utilising the cost approach. This approach considers the cost (sourced from cost guides such as Rawlinson's, Cordell, professional quantity surveyors and recent construction costs for similar projects) to reproduce or replace similar assets with an asset in new condition, including allowance for installation, less an amount for depreciation in the form of accrued physical wear and tear (asset condition), economic and functional obsolescence. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives.
During the year, a significant number of new projects were completed where the actual cost was recorded and the impact of depreciation at year-end was negligible. While these could be classified as valued at Level 2, given the low proportion of the total portfolio that these represented and the likelihood that in future valuations they would most likely be valued at Level 3, we have adopted a policy that all Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure assets are deemed to be valued at Level 3.
All artworks have been appraised for fair value using sales evidence of comparable sales (Level 2 inputs), condition assessments was performed by inspection. When there was no readily determinable Market Price, the fair value of that artwork was estimated with reference to the best available evidence of the value of a similar work.
The City acquires its computer equipment at arms length from approved suppliers, these acquisitions are recorded at cost any accumulated depreciation reflects the usage of service potential, it is considered that the recorded written down values approximate the fair value of computer equipment, based on Level 3 inputs.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Valuation Processes (continued)Level 3 Inputs - Asset Condition
Revaluation
Depreciation
(a) Disposals of AssetsProceeds Net Book Value Profit/(Loss)
Budget Actual Budget Actual Budget ActualLand held for resale - 2,539,431 - 2,790,645 - (251,214)Land 8,325,000 9,000 10,809,560 23,894 (2,484,560) (14,894)Buildings - - - 118,240 - (118,240)Plant & Equipment 911,224 746,294 618,838 681,700 292,386 64,594Internal Art Works - - - 225,750 - (225,750)Vehicles 754,116 977,136 1,058,032 825,207 (303,916) 151,929Computing - - - 178,234 - (178,234)Furniture & Equipment - - - 556,369 - (556,369)Infrastructure - - - 7,206 - (7,206)
9,990,340 4,271,861 12,486,430 5,407,245 (2,496,090) (1,135,383)
There has been no change in the valuation technique(s) used to calculated the fair values disclosed in the notes to the financial statements.
There are a very large number of assets that comprise the asset classes Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure as a result it is not physically possible to inspect every asset for the purposes of completing a valuation. As a consequence, reliance is placed on the accuracy of data held in the asset management system and its associated internal controls. This includes regular planned inspections and updates to the system following maintenance activities and renewal treatments. Similarly, especially for drainage infrastructure, a large portion of the portfolio is located underground and may be inspected only on an irregular basis.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways:
(a) The gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset. For example, the gross carrying amount may be restated by reference to observable market data or it may be restated proportionately to the change in the carrying amount. The accumulated depreciation at the date of the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses; or(b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.
The fair value of fixed assets is determined at least every three years and no more than five years in accordance with the regulatory framework. At the end of each period the valuation is reviewed and where appropriate the fair value is updated to reflect current market conditions. This process is considered to be in accordance with Local Government (Financial Management) Regulation 17A (2) which requires property, plant and equipment to be shown at fair value.
The depreciable amount of all fixed assets including buildings but excluding freehold land and vested land, are depreciated on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income in the period in which they arise.
Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same class of asset are recognised against revaluation surplus directly in equity. All other decreases are recognised in profit or loss.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Valuation Techniques and Inputs used in the Fair Value Measurement (Continued)Computer Equipment
Other Assets - Artwork
Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure (Excluding External Art)
External Art
Valuation Processes
The Main Level 3 Inputs Used are Derived and Evaluated as Follows:
Typically, the factors considered at a holistic level include (but are not limited to) the following; functionality, capacity, utilisation, safety and obsolescence, at a component level physical condition and breakage and repair history. Having considered the relevant factors each component is assessed on an appropriate scoring scale. The consumption score methodology is based on assessing the relative level of remaining service potential.
The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and were then updated to take into account the experience and understanding of City’s own engineers, asset management and finance staff. The results of the valuation were further evaluated by confirmation against the City’s own understanding of the assets and the level of remaining service potential.
The City engages external, independent and qualified valuers to assist and determine the fair value of the its land, buildings and Artwork (internal and external). Infrastructure assets are valued using management valuation methodologies.
The relationship between asset consumption rating scale and the level of consumed service potential: Under the cost approach the estimated cost to replace the asset is calculated and then adjusted to take account of accumulated depreciation. In order to achieve this valuation profiles define the relationship between an asset consumption score and the level of remaining service potential for each asset type based on the interrelationship between a range of factors. These factors and their relationship to the fair value require professional judgement and include asset condition, legal and commercial obsolescence, and the determination of key depreciation related assumptions such as residual value (zero), useful life and pattern of consumption of the future economic benefit.
An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. If any variation is considered material a revaluation is undertaken either by comprehensive revaluation or by applying an interim revaluation using appropriate indices.
When assessing the level of remaining service potential or the rate of consumption (utilising a consumption scoring methodology) of that service potential (depreciation) the accounting standards require consideration of a range of factors. These include condition, obsolescence, restrictions and other relevant factors. They can generally be described as being split into two types. Holistic, those that impact at the whole of asset level and component specific those that relate specifically to each component.
Because of the variety of valuation uncertainties, fair value almost always has been determined by utilising inputs of more than one valuation technique this can be likened to an appraisal approach. Fair value judgements have therefore been based on a number of factors such as reputation of the artist, historical/cultural significance, significance of the commission, the significance of the site, if the work is a rare or common representation of the artists' art practice, acquisition cost and physical condition. The appraisal approach is best described as an educated guess as to what price the artwork would fetch in an open or most advantageous market, should one exist.
All Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure assets were valued using Level 3 inputs utilising the cost approach. This approach considers the cost (sourced from cost guides such as Rawlinson's, Cordell, professional quantity surveyors and recent construction costs for similar projects) to reproduce or replace similar assets with an asset in new condition, including allowance for installation, less an amount for depreciation in the form of accrued physical wear and tear (asset condition), economic and functional obsolescence. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives.
During the year, a significant number of new projects were completed where the actual cost was recorded and the impact of depreciation at year-end was negligible. While these could be classified as valued at Level 2, given the low proportion of the total portfolio that these represented and the likelihood that in future valuations they would most likely be valued at Level 3, we have adopted a policy that all Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure assets are deemed to be valued at Level 3.
All artworks have been appraised for fair value using sales evidence of comparable sales (Level 2 inputs), condition assessments was performed by inspection. When there was no readily determinable Market Price, the fair value of that artwork was estimated with reference to the best available evidence of the value of a similar work.
The City acquires its computer equipment at arms length from approved suppliers, these acquisitions are recorded at cost any accumulated depreciation reflects the usage of service potential, it is considered that the recorded written down values approximate the fair value of computer equipment, based on Level 3 inputs.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Valuation Processes (continued)Level 3 Inputs - Asset Condition
Revaluation
Depreciation
(a) Disposals of AssetsProceeds Net Book Value Profit/(Loss)
Budget Actual Budget Actual Budget ActualLand held for resale - 2,539,431 - 2,790,645 - (251,214)Land 8,325,000 9,000 10,809,560 23,894 (2,484,560) (14,894)Buildings - - - 118,240 - (118,240)Plant & Equipment 911,224 746,294 618,838 681,700 292,386 64,594Internal Art Works - - - 225,750 - (225,750)Vehicles 754,116 977,136 1,058,032 825,207 (303,916) 151,929Computing - - - 178,234 - (178,234)Furniture & Equipment - - - 556,369 - (556,369)Infrastructure - - - 7,206 - (7,206)
9,990,340 4,271,861 12,486,430 5,407,245 (2,496,090) (1,135,383)
There has been no change in the valuation technique(s) used to calculated the fair values disclosed in the notes to the financial statements.
There are a very large number of assets that comprise the asset classes Roads, Drainage, Footpaths, Parks and Reserves, and Other Infrastructure as a result it is not physically possible to inspect every asset for the purposes of completing a valuation. As a consequence, reliance is placed on the accuracy of data held in the asset management system and its associated internal controls. This includes regular planned inspections and updates to the system following maintenance activities and renewal treatments. Similarly, especially for drainage infrastructure, a large portion of the portfolio is located underground and may be inspected only on an irregular basis.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways:
(a) The gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset. For example, the gross carrying amount may be restated by reference to observable market data or it may be restated proportionately to the change in the carrying amount. The accumulated depreciation at the date of the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses; or(b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.
The fair value of fixed assets is determined at least every three years and no more than five years in accordance with the regulatory framework. At the end of each period the valuation is reviewed and where appropriate the fair value is updated to reflect current market conditions. This process is considered to be in accordance with Local Government (Financial Management) Regulation 17A (2) which requires property, plant and equipment to be shown at fair value.
The depreciable amount of all fixed assets including buildings but excluding freehold land and vested land, are depreciated on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income in the period in which they arise.
Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same class of asset are recognised against revaluation surplus directly in equity. All other decreases are recognised in profit or loss.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
11. PROPERTY, PLANT, EQUIPMENT and INFRASTRUCTURE (Continued)
(b) Depreciation Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Buildings - Non-Specialised 502,913 526,920 499,143 Buildings - Specialised 6,033,509 6,516,060 5,797,005 Furniture and Equipment 205,541 508,880 453,699 Plant and Equipment 3,583,715 3,942,860 2,717,202 Information Technology 828,901 1,468,740 1,737,251 Light Fleet Vehicles 1,204,000 1,137,470 1,183,713 Infrastructure - Roads 11,159,618 8,360,100 7,730,210 Infrastructure - Other 2,819,699 2,638,110 2,639,119 Infrastructure - Drainage 5,914,128 2,851,550 2,842,570 Infrastructure - Footpath/Cycleway 2,537,971 1,257,720 1,105,791 Infrastructure - Parks & Reserves 6,407,789 7,204,320 7,680,655
41,197,785 36,412,730 34,386,358
Depreciation rates
Asset Class Useful lifeBuildings 16 to 92 YearsFurniture and equipment 2 to 25 YearsPlant and equipment 3 to 5 YearsInformation Technology 2 to 3 YearsLight Fleet Vehicles 2 to 3 YearsRoads - Formation Not depreciated - Pavement 75 years - Seal 45 years - Kerbing 70 yearsDrainage 85 yearsFootpaths/Cycleways 45 yearsParks and Reserves 10 to 150 yearsOther Infrastructure 20 to 90 years
Typical estimated useful lives for the different asset classes for the current and prior years are included in the table below:
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
12
.R
EVA
LUA
TIO
N S
UR
PLU
S2
01
92
01
92
01
9To
tal
20
19
20
18
20
18
20
18
Tota
l2
01
8O
pen
ing
Rev
alu
atio
nR
eval
uat
ion
Mov
emen
t on
Clo
sin
gO
pen
ing
Rev
alu
atio
nR
eval
uat
ion
Mov
emen
t on
Clo
sin
gB
alan
ceIn
crem
ent
(Dec
rem
ent)
Rev
alu
atio
nB
alan
ceB
alan
ceIn
crem
ent
(Dec
rem
ent)
Rev
alu
atio
nB
alan
ce$
$$
$$
$$
$$
$La
nd -
Fre
ehol
d La
nd20
4,42
9,24
5-
--
204,
429,
245
204,
429,
245
--
-20
4,42
9,24
5Bui
ldin
gs88
,094
,816
--
-88
,094
,816
88,0
94,8
16-
--
88,0
94,8
16Pl
ant
and
Equi
pmen
t41
7,93
7-
--
417,
937
417,
937
--
-41
7,93
7In
tern
al A
rt W
orks
173,
672
--
-17
3,67
217
3,67
2-
--
173,
672
Infr
astr
uctu
re -
Roa
ds33
9,15
1,26
1-
--
339,
151,
261
131,
637,
917
207,
513,
344
-20
7,51
3,34
433
9,15
1,26
1In
fras
truc
ture
- B
ridg
es91
,890
,139
--
-91
,890
,139
69,8
13,4
9522
,076
,644
-22
,076
,644
91,8
90,1
39In
fras
truc
ture
- D
rain
age
123,
655,
878
--
-12
3,65
5,87
84,
511,
476
119,
144,
402
-11
9,14
4,40
212
3,65
5,87
8In
fras
truc
ture
- F
ootp
ath/
Cyc
lew
ay49
,285
,178
--
-49
,285
,178
16,4
98,3
2832
,786
,850
-32
,786
,850
49,2
85,1
78In
fras
truc
ture
- P
arks
and
Res
erve
s59
,795
,826
--
-59
,795
,826
47,4
91,0
8812
,304
,738
-12
,304
,738
59,7
95,8
26EM
RC:
Rev
alua
tion
Res
erve
16,0
31,1
1685
,301
-85
,301
16,1
16,4
1716
,167
,066
-(1
35,9
50)
(135
,950
)16
,031
,116
972,
925,
068
85,3
01-
85,3
0197
3,01
0,36
957
9,23
5,04
039
3,82
5,97
8(1
35,9
50)
393,
690,
028
972,
925,
068
Mov
emen
ts o
n re
valu
atio
n of
pro
pert
y, p
lant
and
equ
ipm
ent
(inc
ludi
ng in
fras
truc
ture
) ar
e no
t ab
le t
o be
rel
iabl
y at
trib
uted
to
a pr
ogra
m a
s th
e as
sets
wer
e re
valu
ed b
y cl
ass
as p
rovi
ded
for
by A
ASB 1
16 A
us 4
0.1.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
11. PROPERTY, PLANT, EQUIPMENT and INFRASTRUCTURE (Continued)
(b) Depreciation Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Buildings - Non-Specialised 502,913 526,920 499,143 Buildings - Specialised 6,033,509 6,516,060 5,797,005 Furniture and Equipment 205,541 508,880 453,699 Plant and Equipment 3,583,715 3,942,860 2,717,202 Information Technology 828,901 1,468,740 1,737,251 Light Fleet Vehicles 1,204,000 1,137,470 1,183,713 Infrastructure - Roads 11,159,618 8,360,100 7,730,210 Infrastructure - Other 2,819,699 2,638,110 2,639,119 Infrastructure - Drainage 5,914,128 2,851,550 2,842,570 Infrastructure - Footpath/Cycleway 2,537,971 1,257,720 1,105,791 Infrastructure - Parks & Reserves 6,407,789 7,204,320 7,680,655
41,197,785 36,412,730 34,386,358
Depreciation rates
Asset Class Useful lifeBuildings 16 to 92 YearsFurniture and equipment 2 to 25 YearsPlant and equipment 3 to 5 YearsInformation Technology 2 to 3 YearsLight Fleet Vehicles 2 to 3 YearsRoads - Formation Not depreciated - Pavement 75 years - Seal 45 years - Kerbing 70 yearsDrainage 85 yearsFootpaths/Cycleways 45 yearsParks and Reserves 10 to 150 yearsOther Infrastructure 20 to 90 years
Typical estimated useful lives for the different asset classes for the current and prior years are included in the table below:
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
12
.R
EVA
LUA
TIO
N S
UR
PLU
S2
01
92
01
92
01
9To
tal
20
19
20
18
20
18
20
18
Tota
l2
01
8O
pen
ing
Rev
alu
atio
nR
eval
uat
ion
Mov
emen
t on
Clo
sin
gO
pen
ing
Rev
alu
atio
nR
eval
uat
ion
Mov
emen
t on
Clo
sin
gB
alan
ceIn
crem
ent
(Dec
rem
ent)
Rev
alu
atio
nB
alan
ceB
alan
ceIn
crem
ent
(Dec
rem
ent)
Rev
alu
atio
nB
alan
ce$
$$
$$
$$
$$
$La
nd -
Fre
ehol
d La
nd20
4,42
9,24
5-
--
204,
429,
245
204,
429,
245
--
-20
4,42
9,24
5Bui
ldin
gs88
,094
,816
--
-88
,094
,816
88,0
94,8
16-
--
88,0
94,8
16Pl
ant
and
Equi
pmen
t41
7,93
7-
--
417,
937
417,
937
--
-41
7,93
7In
tern
al A
rt W
orks
173,
672
--
-17
3,67
217
3,67
2-
--
173,
672
Infr
astr
uctu
re -
Roa
ds33
9,15
1,26
1-
--
339,
151,
261
131,
637,
917
207,
513,
344
-20
7,51
3,34
433
9,15
1,26
1In
fras
truc
ture
- B
ridg
es91
,890
,139
--
-91
,890
,139
69,8
13,4
9522
,076
,644
-22
,076
,644
91,8
90,1
39In
fras
truc
ture
- D
rain
age
123,
655,
878
--
-12
3,65
5,87
84,
511,
476
119,
144,
402
-11
9,14
4,40
212
3,65
5,87
8In
fras
truc
ture
- F
ootp
ath/
Cyc
lew
ay49
,285
,178
--
-49
,285
,178
16,4
98,3
2832
,786
,850
-32
,786
,850
49,2
85,1
78In
fras
truc
ture
- P
arks
and
Res
erve
s59
,795
,826
--
-59
,795
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91,0
8812
,304
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-12
,304
,738
59,7
95,8
26EM
RC:
Rev
alua
tion
Res
erve
16,0
31,1
1685
,301
-85
,301
16,1
16,4
1716
,167
,066
-(1
35,9
50)
(135
,950
)16
,031
,116
972,
925,
068
85,3
01-
85,3
0197
3,01
0,36
957
9,23
5,04
039
3,82
5,97
8(1
35,9
50)
393,
690,
028
972,
925,
068
Mov
emen
ts o
n re
valu
atio
n of
pro
pert
y, p
lant
and
equ
ipm
ent
(inc
ludi
ng in
fras
truc
ture
) ar
e no
t ab
le t
o be
rel
iabl
y at
trib
uted
to
a pr
ogra
m a
s th
e as
sets
wer
e re
valu
ed b
y cl
ass
as p
rovi
ded
for
by A
ASB 1
16 A
us 4
0.1.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
13. TRADE and OTHER PAYABLES Actual Actual2018/19 2017/18
Current $ $Trade Creditors 7,354,049 533,672Accrued Expenses 5,577,702 3,606,969Creditors Retentions 73,062 78,244FBT Accrual 143,779 151,541Salary and Wages Accrual 1,103,550 1,015,539Emergency Services Levy 249,154 164,792
14,501,296 5,550,757
Non-currentBonds & Deposits 4,169,826 3,506,743
4,169,826 3,506,743
SIGNIFICANT ACCOUNTING POLICIESTrade and other payables
Represented by:14. INFORMATION ON BORROWINGS
(a) Borrowings 2018/19 2017/18CurrentMunicipal Debt 6,696,831 6,942,978Self Supporting Loans 71,205 98,665
6,768,036 7,041,643Non-currentMunicipal Debt 29,299,603 35,996,435Self Supporting Loans 324,225 395,429
29,623,828 36,391,864Total Liability 36,391,864 43,433,507
(b) Repayments - Borrowings Outstanding New Principal Outstanding1 July 2018 Loans Repayments 30 June 2019
Governance 494,094 - 98,665 395,429Community amenities 11,337,051 - 1,313,096 10,023,955Recreation and culture 15,111,306 - 2,707,398 12,403,908Transport 7,394,999 - 1,256,481 6,138,518Other property and services 9,096,056 - 1,666,003 7,430,054
43,433,506 - 7,041,643 36,391,864
(c) Interest Payments by Program 2018/19 2017/18Governance 32,339 39,054Community amenities 438,235 489,954Recreation and culture 662,707 637,679Transport 297,100 392,082Other property and services 375,488 453,233
1,805,869 2,012,002
(d) New Borrowings - 2018/19Term yrs Rate % Actual Budget
Infrastructure assets 10 3.85 - 13,970,000
(e) Unspent Borrowings 1 July 2018 New Applied UnspentLoan 213 - Operations Centre Loan for $400,000 95,744 - (95,744) -
(f) Undrawn Borrowing FacilitiesCredit Standby Arrangements 2018/19 2017/18Credit card limit 450,000 450,000Credit card balance at balance date - - Total amount of credit unused 450,000 450,000
Trade and other payables represent liabilities for goods and services provided to the City prior to the end of the financial year that are unpaid and arise when the City becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
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ND
ED 3
0 J
UN
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01
9
15
.EM
PLO
YEE
REL
ATE
D P
RO
VIS
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SEm
plo
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Rel
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Pro
visi
ons
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visi
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orP
rovi
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visi
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g S
ervi
ceP
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has
edR
oste
red
Ti
me
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ick
Emp
loym
ent
Leav
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ays
Off
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Lea
veLe
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On
-Cos
tsTo
tal
Op
enin
g b
alan
ce a
t 1
Ju
ly 2
01
84,
507,
600
7,68
7,61
0
-
273,
109
556,
820
607,
041
2,64
5,08
0
16,2
77,2
60
Add
itio
nal P
rovi
sion
4,65
5,70
7
1,47
0,85
9
72,7
80
688,
499
861,
730
1,87
7,99
8
(143
,698
)
9,48
3,87
5
Am
ount
s U
sed
(4,6
04,7
29)
(969
,542
)
(18,
714)
(518
,552
)
(844
,580
)
(2,0
00,6
62)
-
(8,9
56,7
79)
Bal
ance
at
30
Ju
ne
20
19
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
Com
pri
ses
Cur
rent
4,55
8,57
8
6,70
6,87
9
54,0
66
443,
056
573,
970
484,
377
2,29
5,34
7
15,1
16,2
73
Non
-cur
rent
-
1,48
2,04
8
-
-
-
-20
6,03
5
1,68
8,08
3
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
Am
oun
ts a
re e
xpec
ted
to
be
sett
led
on
th
e fo
llow
ing
bas
is: P
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
An
nu
alLo
ng
Ser
vice
Pu
rch
ased
Ros
tere
d
Tim
e in
Sic
kEm
plo
ymen
t Le
ave
Leav
eLe
ave
Day
s O
ffLi
eu L
eave
Leav
eO
n-C
osts
Tota
l2
01
7/1
8$
$$
$$
$$
$Le
ss t
han
12 m
onth
s af
ter
the
repo
rtin
g da
te4,
507,
600
6,28
0,30
0
-
273,
109
556,
820
607,
041
2,43
4,79
2
14,6
59,6
62
Mor
e th
an 1
2 m
onth
s fr
om r
epor
ting
dat
e1,
407,
310
-
-
-
-
210,
288
1,61
7,59
8
4,50
7,60
0
7,68
7,61
0
-
273,
109
556,
820
607,
041
2,64
5,08
0
16,2
77,2
60
20
18
/19
Less
tha
n 12
mon
ths
afte
r th
e re
port
ing
date
4,55
8,57
8
6,70
6,87
9
54,0
66
443,
056
573,
970
484,
377
2,29
5,34
7
15,1
16,2
73
Mor
e th
an 1
2 m
onth
s fr
om r
epor
ting
dat
e-
1,48
2,04
8
-
-
-
-
206,
035
1,68
8,08
3
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
The
Ann
ual L
eave
, Ti
me
in L
ieu,
Ros
tere
d D
ays
and
Sic
k Le
ave
off lia
bilit
ies
are
clas
sifie
d as
cur
rent
as
ther
e is
no
unco
nditio
nal r
ight
to
defe
r se
ttle
men
t fo
r at
leas
t 12
mon
ths
afte
r th
e en
d of
th
e re
port
ing
peri
od.
Ass
essm
ents
indi
cate
tha
t ac
tual
set
tlem
ent
of t
he li
abili
ties
is e
xpec
ted
to o
ccur
as
follo
ws:
Tim
ing
of t
he p
aym
ent
of c
urre
nt le
ave
liabi
litie
s is
diff
icul
t to
det
erm
ine
as it
is d
epen
dent
on
futu
re d
ecis
ions
of em
ploy
ees.
Exp
ecte
d se
ttle
men
t tim
ings
are
bas
ed o
n in
form
atio
n ob
tain
ed fro
m
empl
oyee
s an
d hi
stor
ical
leav
e tr
ends
and
ass
umes
no
even
ts w
ill o
ccur
to
impa
ct o
n th
ese
hist
oric
al t
rend
s.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
13. TRADE and OTHER PAYABLES Actual Actual2018/19 2017/18
Current $ $Trade Creditors 7,354,049 533,672Accrued Expenses 5,577,702 3,606,969Creditors Retentions 73,062 78,244FBT Accrual 143,779 151,541Salary and Wages Accrual 1,103,550 1,015,539Emergency Services Levy 249,154 164,792
14,501,296 5,550,757
Non-currentBonds & Deposits 4,169,826 3,506,743
4,169,826 3,506,743
SIGNIFICANT ACCOUNTING POLICIESTrade and other payables
Represented by:14. INFORMATION ON BORROWINGS
(a) Borrowings 2018/19 2017/18CurrentMunicipal Debt 6,696,831 6,942,978Self Supporting Loans 71,205 98,665
6,768,036 7,041,643Non-currentMunicipal Debt 29,299,603 35,996,435Self Supporting Loans 324,225 395,429
29,623,828 36,391,864Total Liability 36,391,864 43,433,507
(b) Repayments - Borrowings Outstanding New Principal Outstanding1 July 2018 Loans Repayments 30 June 2019
Governance 494,094 - 98,665 395,429Community amenities 11,337,051 - 1,313,096 10,023,955Recreation and culture 15,111,306 - 2,707,398 12,403,908Transport 7,394,999 - 1,256,481 6,138,518Other property and services 9,096,056 - 1,666,003 7,430,054
43,433,506 - 7,041,643 36,391,864
(c) Interest Payments by Program 2018/19 2017/18Governance 32,339 39,054Community amenities 438,235 489,954Recreation and culture 662,707 637,679Transport 297,100 392,082Other property and services 375,488 453,233
1,805,869 2,012,002
(d) New Borrowings - 2018/19Term yrs Rate % Actual Budget
Infrastructure assets 10 3.85 - 13,970,000
(e) Unspent Borrowings 1 July 2018 New Applied UnspentLoan 213 - Operations Centre Loan for $400,000 95,744 - (95,744) -
(f) Undrawn Borrowing FacilitiesCredit Standby Arrangements 2018/19 2017/18Credit card limit 450,000 450,000Credit card balance at balance date - - Total amount of credit unused 450,000 450,000
Trade and other payables represent liabilities for goods and services provided to the City prior to the end of the financial year that are unpaid and arise when the City becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
15
.EM
PLO
YEE
REL
ATE
D P
RO
VIS
ION
SEm
plo
yee
Rel
ated
Pro
visi
ons
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orA
nn
ual
Lon
g S
ervi
ceP
urc
has
edR
oste
red
Ti
me
inS
ick
Emp
loym
ent
Leav
eLe
ave
Leav
eD
ays
Off
Lieu
Lea
veLe
ave
On
-Cos
tsTo
tal
Op
enin
g b
alan
ce a
t 1
Ju
ly 2
01
84,
507,
600
7,68
7,61
0
-
273,
109
556,
820
607,
041
2,64
5,08
0
16,2
77,2
60
Add
itio
nal P
rovi
sion
4,65
5,70
7
1,47
0,85
9
72,7
80
688,
499
861,
730
1,87
7,99
8
(143
,698
)
9,48
3,87
5
Am
ount
s U
sed
(4,6
04,7
29)
(969
,542
)
(18,
714)
(518
,552
)
(844
,580
)
(2,0
00,6
62)
-
(8,9
56,7
79)
Bal
ance
at
30
Ju
ne
20
19
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
Com
pri
ses
Cur
rent
4,55
8,57
8
6,70
6,87
9
54,0
66
443,
056
573,
970
484,
377
2,29
5,34
7
15,1
16,2
73
Non
-cur
rent
-
1,48
2,04
8
-
-
-
-20
6,03
5
1,68
8,08
3
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
Am
oun
ts a
re e
xpec
ted
to
be
sett
led
on
th
e fo
llow
ing
bas
is: P
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
Pro
visi
on f
orP
rovi
sion
for
An
nu
alLo
ng
Ser
vice
Pu
rch
ased
Ros
tere
d
Tim
e in
Sic
kEm
plo
ymen
t Le
ave
Leav
eLe
ave
Day
s O
ffLi
eu L
eave
Leav
eO
n-C
osts
Tota
l2
01
7/1
8$
$$
$$
$$
$Le
ss t
han
12 m
onth
s af
ter
the
repo
rtin
g da
te4,
507,
600
6,28
0,30
0
-
273,
109
556,
820
607,
041
2,43
4,79
2
14,6
59,6
62
Mor
e th
an 1
2 m
onth
s fr
om r
epor
ting
dat
e1,
407,
310
-
-
-
-
210,
288
1,61
7,59
8
4,50
7,60
0
7,68
7,61
0
-
273,
109
556,
820
607,
041
2,64
5,08
0
16,2
77,2
60
20
18
/19
Less
tha
n 12
mon
ths
afte
r th
e re
port
ing
date
4,55
8,57
8
6,70
6,87
9
54,0
66
443,
056
573,
970
484,
377
2,29
5,34
7
15,1
16,2
73
Mor
e th
an 1
2 m
onth
s fr
om r
epor
ting
dat
e-
1,48
2,04
8
-
-
-
-
206,
035
1,68
8,08
3
4,55
8,57
8
8,18
8,92
7
54,0
66
443,
056
573,
970
484,
377
2,50
1,38
2
16,8
04,3
56
The
Ann
ual L
eave
, Ti
me
in L
ieu,
Ros
tere
d D
ays
and
Sic
k Le
ave
off lia
bilit
ies
are
clas
sifie
d as
cur
rent
as
ther
e is
no
unco
nditio
nal r
ight
to
defe
r se
ttle
men
t fo
r at
leas
t 12
mon
ths
afte
r th
e en
d of
th
e re
port
ing
peri
od.
Ass
essm
ents
indi
cate
tha
t ac
tual
set
tlem
ent
of t
he li
abili
ties
is e
xpec
ted
to o
ccur
as
follo
ws:
Tim
ing
of t
he p
aym
ent
of c
urre
nt le
ave
liabi
litie
s is
diff
icul
t to
det
erm
ine
as it
is d
epen
dent
on
futu
re d
ecis
ions
of em
ploy
ees.
Exp
ecte
d se
ttle
men
t tim
ings
are
bas
ed o
n in
form
atio
n ob
tain
ed fro
m
empl
oyee
s an
d hi
stor
ical
leav
e tr
ends
and
ass
umes
no
even
ts w
ill o
ccur
to
impa
ct o
n th
ese
hist
oric
al t
rend
s.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
SIG
NIF
ICA
NT
AC
CO
UN
TIN
G P
OLI
CIE
SEm
plo
yee
ben
efit
sS
hor
t-te
rm e
mp
loye
e b
enef
its
Oth
er l
ong
-ter
m e
mp
loye
e b
enef
its
Pro
visi
ons
Emp
loym
ent
On
-Cos
t P
rovi
sion
s
The
sett
lem
ent
of a
nnua
l lea
ve a
nd lo
ng s
ervi
ce le
ave
liabi
litie
s gi
ve r
ise
to t
he p
aym
ent
of e
mpl
oym
ent
on-c
osts
incl
udin
g w
orke
rs' c
ompe
nsat
ion
insu
ranc
e. T
he p
rovi
sion
is t
he p
rese
nt v
alue
of
expe
cted
fut
ure
paym
ents
.Em
ploy
men
t on
-cos
ts,
incl
udin
g w
orke
rs' c
ompe
nsat
ion
insu
ranc
e ar
e no
t em
ploy
ee b
enef
its
and
are
reco
gnis
ed s
epar
atel
y as
liab
ilities
and
exp
ense
s w
hen
the
empl
oym
ent
to w
hich
the
y re
late
ha
s oc
curr
ed.
Empl
oym
ent
on-c
osts
are
incl
uded
as
part
of 'E
mpl
oyee
Cos
ts' i
n th
e Sta
tem
ent
of C
ompr
ehen
sive
Inc
ome.
The
rel
ated
liab
ility
is in
clud
ed in
'Em
ploy
men
t O
n-Cos
ts' p
rovi
sion
.
Prov
isio
ns a
re r
ecog
nise
d w
hen
the
City
has
a pr
esen
t le
gal o
r co
nstr
uctive
obl
igat
ion,
as
a re
sult o
f pa
st e
vent
s, for
whi
ch it
is p
roba
ble
that
an
outf
low
of ec
onom
ic b
enef
its
will
res
ult
and
that
ou
tflo
w c
an b
e re
liabl
y m
easu
red.
Prov
isio
ns a
re m
easu
red
usin
g th
e be
st e
stim
ate
of t
he a
mou
nts
requ
ired
to
sett
le t
he o
blig
atio
n at
the
end
of th
e re
port
ing
peri
od.
Prov
isio
n is
mad
e fo
r th
e City’
s ob
ligat
ions
for
sho
rt-t
erm
em
ploy
ee b
enef
its.
Sho
rt-t
erm
em
ploy
ee b
enef
its
are
bene
fits
(oth
er t
han
term
inat
ion
bene
fits)
tha
t ar
e ex
pect
ed t
o be
set
tled
who
lly
befo
re 1
2 m
onth
s af
ter
the
end
of t
he a
nnua
l rep
orting
per
iod
in w
hich
the
em
ploy
ees
rend
er t
he r
elat
ed s
ervi
ce,
incl
udin
g w
ages
, sa
lari
es a
nd s
ick
leav
e. S
hort
-ter
m e
mpl
oyee
ben
efits
are
mea
sure
d at
the
(un
disc
ount
ed)
amou
nts
expe
cted
to
be p
aid
whe
n th
e ob
ligat
ion
is s
ettled
.
The
City’
s ob
ligat
ions
for
sho
rt-t
erm
em
ploy
ee b
enef
its
such
as
wag
es,
sala
ries
and
sic
k le
ave
are
reco
gnis
ed a
s a
part
of cu
rren
t tr
ade
and
othe
r pa
yabl
es in
the
sta
tem
ent
of fin
anci
al p
ositio
n.
The
City’
s ob
ligat
ions
for
em
ploy
ees’
ann
ual l
eave
and
long
ser
vice
leav
e en
titlem
ents
are
rec
ogni
sed
as p
rovi
sion
s in
the
sta
tem
ent
of fin
anci
al p
ositio
n.Lo
ng-t
erm
em
ploy
ee b
enef
its
are
mea
sure
d at
the
pre
sent
val
ue o
f th
e ex
pect
ed fut
ure
paym
ents
to
be m
ade
to e
mpl
oyee
s. E
xpec
ted
futu
re p
aym
ents
inco
rpor
ate
antici
pate
d fu
ture
wag
e an
d sa
lary
leve
ls,
dura
tion
s of
ser
vice
and
em
ploy
ee d
epar
ture
s an
d ar
e di
scou
nted
at
rate
s de
term
ined
by
refe
renc
e to
mar
ket
yiel
ds a
t th
e en
d of
the
rep
orting
per
iod
on g
over
nmen
t bo
nds
that
ha
ve m
atur
ity
date
s th
at a
ppro
xim
ate
the
term
s of
the
obl
igat
ions
. Any
re-
mea
sure
men
ts for
cha
nges
in a
ssum
ptio
ns o
f ob
ligat
ions
for
oth
er lo
ng-t
erm
em
ploy
ee b
enef
its
are
reco
gnis
ed in
pro
fit
or lo
ss in
the
per
iods
in w
hich
the
cha
nges
occ
ur.
The
City’
s ob
ligat
ions
for
long
-ter
m e
mpl
oyee
ben
efits
are
pres
ente
d as
non
-cur
rent
pro
visi
ons
in it
s st
atem
ent
of fin
anci
al p
ositio
n, e
xcep
t w
here
the
City
does
not
hav
e an
unc
ondi
tion
al r
ight
to
defe
r se
ttle
men
t fo
r at
leas
t 12
mon
ths
afte
r th
e en
d of
the
rep
orting
per
iod,
in w
hich
cas
e th
e ob
ligat
ions
are
pre
sent
ed a
s cu
rren
t pr
ovis
ions
.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
16. NOTES TO THE STATEMENT OF CASH FLOWS
Reconciliation of Cash
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Cash and cash equivalents 22,970,288 21,781,230 26,431,365
Reconciliation of Net Cash Provided ByOperating Activities to Net Result
Net result 67,609,174 54,580,380 101,601,849
Non-cash flows in Net result:Unrealised Gain Investment in WALGA House (16,403) - 74 Depreciation 41,197,785 36,412,730 34,386,358 (Profit)/loss on sale of asset 1,135,384 2,496,090 (1,194,515) Unrealised(Profit)/Loss in Interest in joint ventures - Unrealised Gain from EMRC (4,583,216) (5,000,000) (4,785,810) (Profit)/loss on Investments (1,552) - (4,810) Developers Contributions - Cash (7,927,065) - (12,781,392) Land Ceded to the Crown 1,979,004 - (1,787,523)
Changes in assets and liabilities:(Increase)/decrease in receivables (2,460,923) 297,026 (2,146,193) (Increase)/decrease in other assets (33,800) (4,388) 130,969 (Increase)/decrease in inventories 47,934 (6,306) (307,155) Increase/(decrease) in payables 8,866,177 (81,253) (13,823,224) Increase/(decrease) in provisions 527,097 30,000 1,219,211
Grants contributions forthe development of assets (8,692,967) (16,666,640) (16,614,296) Non-Cash Contributions (24,092,139) (15,828,240) (31,374,362)
Net cash from operating activities 73,554,490 56,229,399 52,519,181
17. TOTAL ASSETS CLASSIFIED BY FUNCTION and ACTIVITYActual Actual
2018/19 2017/18Program $ $Governance 14,469,711 1,488,998 General purpose funding 4,129,891 12,932,245 Law, order and public safety 4,070,403 4,505,309 Health 1,697,989 1,734,658 Education and welfare 16,048,731 16,531,609 Housing 5,347,283 5,408,210 Community amenities 8,032,605 7,585,084 Recreation and culture 485,429,645 478,561,659 Transport 1,259,064,677 1,261,795,156 Economic services 1,085,714 1,239,062 Other property and services 134,364,286 133,985,431 Unallocated 341,843,800 279,096,309
2,275,584,735 2,204,863,730
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows:
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
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efit
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rm e
mp
loye
e b
enef
its
Oth
er l
ong
-ter
m e
mp
loye
e b
enef
its
Pro
visi
ons
Emp
loym
ent
On
-Cos
t P
rovi
sion
s
The
sett
lem
ent
of a
nnua
l lea
ve a
nd lo
ng s
ervi
ce le
ave
liabi
litie
s gi
ve r
ise
to t
he p
aym
ent
of e
mpl
oym
ent
on-c
osts
incl
udin
g w
orke
rs' c
ompe
nsat
ion
insu
ranc
e. T
he p
rovi
sion
is t
he p
rese
nt v
alue
of
expe
cted
fut
ure
paym
ents
.Em
ploy
men
t on
-cos
ts,
incl
udin
g w
orke
rs' c
ompe
nsat
ion
insu
ranc
e ar
e no
t em
ploy
ee b
enef
its
and
are
reco
gnis
ed s
epar
atel
y as
liab
ilities
and
exp
ense
s w
hen
the
empl
oym
ent
to w
hich
the
y re
late
ha
s oc
curr
ed.
Empl
oym
ent
on-c
osts
are
incl
uded
as
part
of 'E
mpl
oyee
Cos
ts' i
n th
e Sta
tem
ent
of C
ompr
ehen
sive
Inc
ome.
The
rel
ated
liab
ility
is in
clud
ed in
'Em
ploy
men
t O
n-Cos
ts' p
rovi
sion
.
Prov
isio
ns a
re r
ecog
nise
d w
hen
the
City
has
a pr
esen
t le
gal o
r co
nstr
uctive
obl
igat
ion,
as
a re
sult o
f pa
st e
vent
s, for
whi
ch it
is p
roba
ble
that
an
outf
low
of ec
onom
ic b
enef
its
will
res
ult
and
that
ou
tflo
w c
an b
e re
liabl
y m
easu
red.
Prov
isio
ns a
re m
easu
red
usin
g th
e be
st e
stim
ate
of t
he a
mou
nts
requ
ired
to
sett
le t
he o
blig
atio
n at
the
end
of th
e re
port
ing
peri
od.
Prov
isio
n is
mad
e fo
r th
e City’
s ob
ligat
ions
for
sho
rt-t
erm
em
ploy
ee b
enef
its.
Sho
rt-t
erm
em
ploy
ee b
enef
its
are
bene
fits
(oth
er t
han
term
inat
ion
bene
fits)
tha
t ar
e ex
pect
ed t
o be
set
tled
who
lly
befo
re 1
2 m
onth
s af
ter
the
end
of t
he a
nnua
l rep
orting
per
iod
in w
hich
the
em
ploy
ees
rend
er t
he r
elat
ed s
ervi
ce,
incl
udin
g w
ages
, sa
lari
es a
nd s
ick
leav
e. S
hort
-ter
m e
mpl
oyee
ben
efits
are
mea
sure
d at
the
(un
disc
ount
ed)
amou
nts
expe
cted
to
be p
aid
whe
n th
e ob
ligat
ion
is s
ettled
.
The
City’
s ob
ligat
ions
for
sho
rt-t
erm
em
ploy
ee b
enef
its
such
as
wag
es,
sala
ries
and
sic
k le
ave
are
reco
gnis
ed a
s a
part
of cu
rren
t tr
ade
and
othe
r pa
yabl
es in
the
sta
tem
ent
of fin
anci
al p
ositio
n.
The
City’
s ob
ligat
ions
for
em
ploy
ees’
ann
ual l
eave
and
long
ser
vice
leav
e en
titlem
ents
are
rec
ogni
sed
as p
rovi
sion
s in
the
sta
tem
ent
of fin
anci
al p
ositio
n.Lo
ng-t
erm
em
ploy
ee b
enef
its
are
mea
sure
d at
the
pre
sent
val
ue o
f th
e ex
pect
ed fut
ure
paym
ents
to
be m
ade
to e
mpl
oyee
s. E
xpec
ted
futu
re p
aym
ents
inco
rpor
ate
antici
pate
d fu
ture
wag
e an
d sa
lary
leve
ls,
dura
tion
s of
ser
vice
and
em
ploy
ee d
epar
ture
s an
d ar
e di
scou
nted
at
rate
s de
term
ined
by
refe
renc
e to
mar
ket
yiel
ds a
t th
e en
d of
the
rep
orting
per
iod
on g
over
nmen
t bo
nds
that
ha
ve m
atur
ity
date
s th
at a
ppro
xim
ate
the
term
s of
the
obl
igat
ions
. Any
re-
mea
sure
men
ts for
cha
nges
in a
ssum
ptio
ns o
f ob
ligat
ions
for
oth
er lo
ng-t
erm
em
ploy
ee b
enef
its
are
reco
gnis
ed in
pro
fit
or lo
ss in
the
per
iods
in w
hich
the
cha
nges
occ
ur.
The
City’
s ob
ligat
ions
for
long
-ter
m e
mpl
oyee
ben
efits
are
pres
ente
d as
non
-cur
rent
pro
visi
ons
in it
s st
atem
ent
of fin
anci
al p
ositio
n, e
xcep
t w
here
the
City
does
not
hav
e an
unc
ondi
tion
al r
ight
to
defe
r se
ttle
men
t fo
r at
leas
t 12
mon
ths
afte
r th
e en
d of
the
rep
orting
per
iod,
in w
hich
cas
e th
e ob
ligat
ions
are
pre
sent
ed a
s cu
rren
t pr
ovis
ions
.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
16. NOTES TO THE STATEMENT OF CASH FLOWS
Reconciliation of Cash
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Cash and cash equivalents 22,970,288 21,781,230 26,431,365
Reconciliation of Net Cash Provided ByOperating Activities to Net Result
Net result 67,609,174 54,580,380 101,601,849
Non-cash flows in Net result:Unrealised Gain Investment in WALGA House (16,403) - 74 Depreciation 41,197,785 36,412,730 34,386,358 (Profit)/loss on sale of asset 1,135,384 2,496,090 (1,194,515) Unrealised(Profit)/Loss in Interest in joint ventures - Unrealised Gain from EMRC (4,583,216) (5,000,000) (4,785,810) (Profit)/loss on Investments (1,552) - (4,810) Developers Contributions - Cash (7,927,065) - (12,781,392) Land Ceded to the Crown 1,979,004 - (1,787,523)
Changes in assets and liabilities:(Increase)/decrease in receivables (2,460,923) 297,026 (2,146,193) (Increase)/decrease in other assets (33,800) (4,388) 130,969 (Increase)/decrease in inventories 47,934 (6,306) (307,155) Increase/(decrease) in payables 8,866,177 (81,253) (13,823,224) Increase/(decrease) in provisions 527,097 30,000 1,219,211
Grants contributions forthe development of assets (8,692,967) (16,666,640) (16,614,296) Non-Cash Contributions (24,092,139) (15,828,240) (31,374,362)
Net cash from operating activities 73,554,490 56,229,399 52,519,181
17. TOTAL ASSETS CLASSIFIED BY FUNCTION and ACTIVITYActual Actual
2018/19 2017/18Program $ $Governance 14,469,711 1,488,998 General purpose funding 4,129,891 12,932,245 Law, order and public safety 4,070,403 4,505,309 Health 1,697,989 1,734,658 Education and welfare 16,048,731 16,531,609 Housing 5,347,283 5,408,210 Community amenities 8,032,605 7,585,084 Recreation and culture 485,429,645 478,561,659 Transport 1,259,064,677 1,261,795,156 Economic services 1,085,714 1,239,062 Other property and services 134,364,286 133,985,431 Unallocated 341,843,800 279,096,309
2,275,584,735 2,204,863,730
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
18. CONTINGENT LIABILITIESActual Actual
2018/19 2017/18Workers Compensation Insurance - Burning Risk 3,015,914 2,830,168
Urban Growth Corridor Sub-Regional Reserves 478,278 2,097,9353,494,192 4,928,103
Actual Actual2018/19 2017/18
Recovery of prior costs/investments 1,552 4,810
(a) Legal action by Lehman Brothers in the United States Bankruptcy Court. In May 2007, the City invested $500,000 into Federation Collateralised Debt Obligation (CDO) notes. In October 2008, in common with all Federation CDO investors, the $500,000 investment was fully repaid to the City. Subsequently Lehman Brothers Special Financing Inc. commenced an action in the United States Bankruptcy Court, Southern District of New York, No. 10 - 803547 applying for an order for all investors to repay the amounts paid. The City considers it unlikely that this matter will be successfully brought before the Courts in the United States, as the matters are similar to those already determined in the United Kingdom Supreme Court [2011] UKSC38 decision. The City engaged Johnson Winter and Slattery (JWS) in April 2016 to represent it in this matter, JWS has advised that it perceives the risk of judgement being capable of being enforced in Australia against the City as low and in addition that legal precedent (subject to appeal) has already been set that Lehman Brothers can not have a distribution similar to the City's overturned.
(b) An action was brought by the City of Swan and others, against Lehman Brothers Australia (in liquidation), the Commonwealth Bank (CBA) and Standard and Poors (S&P) Rating Agency (parent company McGraw-Hill Companies Inc.) for the sale of Collateralised Debt Obligations (CDOs). With regard to the CBA and S&P matters settlement has been achieved. As the City was admitted as a creditor (21 September 2012) to the estate of Lehman Brothers Australia it received further distributions during the year. As shown above the City received $1,552 relating to the above matters.
(c) A number of Public Liability Claims are still pending against the City of Swan at balance date. The value of the claims and the probability of success cannot be determined at this stage.
Contingent liabilities and assets at balance date, not otherwise provided for in the financial statements, relate to:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
19. CAPITAL and LEASING COMMITMENTSActual Actual
2018/19 2017/18(a) Capital Expenditure Commitments $ $
Contracted for:- capital expenditure projects 6,065,841 6,016,970- plant & equipment purchases 1,937,932 63,918
8,003,773 6,080,888
Payable:- not later than one year 7,713,445 5,356,888- longer than one year 290,328 724,000
8,003,773 6,080,888
(b) Operating Lease CommitmentsNon-cancellable operating leases contracted for but not capitalised in the accounts.
Actual Actual2018/19 2017/18
Payable: $ $- not later than one year 130,329 145,418- later than one year but not later than two years 67,630 74,441- later than two years but not later than five years 56,062 11,917
254,021 231,776
SIGNIFICANT ACCOUNTING POLICIESLeases
Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over the life of the lease term.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not legal ownership, are transferred to the City, are classified as finance leases.Finance leases are capitalised recording an asset and a liability at the lower of the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis over the lease term.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
18. CONTINGENT LIABILITIESActual Actual
2018/19 2017/18Workers Compensation Insurance - Burning Risk 3,015,914 2,830,168
Urban Growth Corridor Sub-Regional Reserves 478,278 2,097,9353,494,192 4,928,103
Actual Actual2018/19 2017/18
Recovery of prior costs/investments 1,552 4,810
(a) Legal action by Lehman Brothers in the United States Bankruptcy Court. In May 2007, the City invested $500,000 into Federation Collateralised Debt Obligation (CDO) notes. In October 2008, in common with all Federation CDO investors, the $500,000 investment was fully repaid to the City. Subsequently Lehman Brothers Special Financing Inc. commenced an action in the United States Bankruptcy Court, Southern District of New York, No. 10 - 803547 applying for an order for all investors to repay the amounts paid. The City considers it unlikely that this matter will be successfully brought before the Courts in the United States, as the matters are similar to those already determined in the United Kingdom Supreme Court [2011] UKSC38 decision. The City engaged Johnson Winter and Slattery (JWS) in April 2016 to represent it in this matter, JWS has advised that it perceives the risk of judgement being capable of being enforced in Australia against the City as low and in addition that legal precedent (subject to appeal) has already been set that Lehman Brothers can not have a distribution similar to the City's overturned.
(b) An action was brought by the City of Swan and others, against Lehman Brothers Australia (in liquidation), the Commonwealth Bank (CBA) and Standard and Poors (S&P) Rating Agency (parent company McGraw-Hill Companies Inc.) for the sale of Collateralised Debt Obligations (CDOs). With regard to the CBA and S&P matters settlement has been achieved. As the City was admitted as a creditor (21 September 2012) to the estate of Lehman Brothers Australia it received further distributions during the year. As shown above the City received $1,552 relating to the above matters.
(c) A number of Public Liability Claims are still pending against the City of Swan at balance date. The value of the claims and the probability of success cannot be determined at this stage.
Contingent liabilities and assets at balance date, not otherwise provided for in the financial statements, relate to:
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
19. CAPITAL and LEASING COMMITMENTSActual Actual
2018/19 2017/18(a) Capital Expenditure Commitments $ $
Contracted for:- capital expenditure projects 6,065,841 6,016,970- plant & equipment purchases 1,937,932 63,918
8,003,773 6,080,888
Payable:- not later than one year 7,713,445 5,356,888- longer than one year 290,328 724,000
8,003,773 6,080,888
(b) Operating Lease CommitmentsNon-cancellable operating leases contracted for but not capitalised in the accounts.
Actual Actual2018/19 2017/18
Payable: $ $- not later than one year 130,329 145,418- later than one year but not later than two years 67,630 74,441- later than two years but not later than five years 56,062 11,917
254,021 231,776
SIGNIFICANT ACCOUNTING POLICIESLeases
Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over the life of the lease term.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not legal ownership, are transferred to the City, are classified as finance leases.Finance leases are capitalised recording an asset and a liability at the lower of the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight line basis over the lease term.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
20. RELATED PARTY TRANSACTIONSElected Members RemunerationThe following fees, expenses and allowances were paid to council members and/or the Mayor.
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Members' Allowances/Fees 589,381 597,220 597,222 Travelling expenses 57,963 80,000 81,590 Conferences/Training/Study Tour 39,339 156,000 21,032 Child Care 8,909 1,500 4,638 Uniforms 1,536 5,000 - Dry cleaning 1,696 - 106 Telecommunications allowance 51,625 52,500 52,500
750,450 892,220 757,088
Key Management Personnel (KMP) Compensation DisclosureThe total of remuneration of KMP of the City during the year are as follows:
Actual Actual2018/19 2017/18
$ $Short-term employee benefits 1,244,343 1,298,255Post-employment benefits 173,442 168,544Other long-term benefits 34,374 34,145
1,452,159 1,500,944Short-term employee benefits
Post-employment benefits
Other long-term benefits
Transactions with related parties
The following transactions occurred with related parties:2019 2018
Actual Actual$ $
Sale of goods and services 269 8,376Purchase of goods and services 9,740,631 9,043,214
Amounts payable to related parties:Trade and other payables 731,199 439,852Related PartiesThe City's main related parties are as follows:i. Key management personnel
ii. Other Related Parties
iii. Entities subject to significant influence by the City
The associate person of KMP was employed by the City under normal employment terms and conditions.
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any elected member, are considered key management personnel.
An entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity which holds significant influence.
No outstanding balances or provisions for doubtful debts or guaranties exist in relation to related parties at year end.
These amounts include all salary, fringe benefits and cash bonuses awarded to KMP except for details in respect to fees and benefits paid to elected members which may be found above.
These amounts are the current-year's estimated cost of providing for the City's superannuation contributions made during the year.
These amounts represent long service benefits accruing during the year.
Transactions between related parties and the City are on normal commercial terms and conditions, no more favourable than those available to other parties, unless otherwise stated.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
21. JOINT ARRANGEMENTSActual Actual
2018/19 2017/18$ $
(a) Carrying Amount of Investment in Associate
Interest in Joint Venture - EMRC 76,392,781 71,724,264
Carrying amount at 1 July 71,724,264 67,074,404 - Share of associates total comprehensive income arising during the period 4,668,517 4,649,860 Carrying amount at 30 June 76,392,781 71,724,264
Share of joint operationsEastern Metropolitan Regional Council
City's portion of EMRC's net assets Total Investment in the Joint InvestmentCurrent Assets 42,087,879 38,880,563 Non-Current Assets 38,864,434 36,203,940 Total assets 80,952,313 75,084,503
Current liabilities 2,803,826 1,983,054 Non-Current Liabilities 1,755,706 1,377,185 Total liabilities 4,559,532 3,360,239
Net Assets 76,392,781 71,724,264
Change in equity 4,583,216 4,785,810 Changes in asset revaluation surplus 85,301 (135,949) Total other comprehensive income for the period 4,668,517 4,649,861
Joint Venture - Altone Park Leisure Centre
SIGNIFICANT ACCOUNTING POLICIESInterests in Joint Arrangements
The City has a 39.07% share in the net assets of the Eastern Metropolitan Regional Council (EMRC) as a member Council.
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities are required.
Separate joint arrangements providing joint ventures with an interest in net assets are classified as a joint venture and accounted for using the equity method. The equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the City's share of net assets of the associate. In addition, the City’s share of the profit or loss of the associate is included in the City’s profit or loss.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the arrangement. The City’s interests in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements.
The value of this investment is based on the City's share of Net Assets as disclosed in the Financial Statements of the EMRC for 2018/19. The City's investment in the EMRC has increased by $4,668,517 to $76,392,781.
In compliance with AASB128 the City's investment is accounted for using the equity method. The City's profit includes its share of the EMRC's profit and the City's other comprehensive income includes its share of the EMRC's other comprehensive income:
The City's of Swan and Bayswater entered into a joint venture to construct the Altone Park Leisure Centre at Benara Road, Beechboro. The centre was completed in 1995. No arrangement is in place for the joint management of the operations of the centre. The City of Swan is responsible for the management and financial outcomes of the Centre.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
20. RELATED PARTY TRANSACTIONSElected Members RemunerationThe following fees, expenses and allowances were paid to council members and/or the Mayor.
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Members' Allowances/Fees 589,381 597,220 597,222 Travelling expenses 57,963 80,000 81,590 Conferences/Training/Study Tour 39,339 156,000 21,032 Child Care 8,909 1,500 4,638 Uniforms 1,536 5,000 - Dry cleaning 1,696 - 106 Telecommunications allowance 51,625 52,500 52,500
750,450 892,220 757,088
Key Management Personnel (KMP) Compensation DisclosureThe total of remuneration of KMP of the City during the year are as follows:
Actual Actual2018/19 2017/18
$ $Short-term employee benefits 1,244,343 1,298,255Post-employment benefits 173,442 168,544Other long-term benefits 34,374 34,145
1,452,159 1,500,944Short-term employee benefits
Post-employment benefits
Other long-term benefits
Transactions with related parties
The following transactions occurred with related parties:2019 2018
Actual Actual$ $
Sale of goods and services 269 8,376Purchase of goods and services 9,740,631 9,043,214
Amounts payable to related parties:Trade and other payables 731,199 439,852Related PartiesThe City's main related parties are as follows:i. Key management personnel
ii. Other Related Parties
iii. Entities subject to significant influence by the City
The associate person of KMP was employed by the City under normal employment terms and conditions.
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any elected member, are considered key management personnel.
An entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity which holds significant influence.
No outstanding balances or provisions for doubtful debts or guaranties exist in relation to related parties at year end.
These amounts include all salary, fringe benefits and cash bonuses awarded to KMP except for details in respect to fees and benefits paid to elected members which may be found above.
These amounts are the current-year's estimated cost of providing for the City's superannuation contributions made during the year.
These amounts represent long service benefits accruing during the year.
Transactions between related parties and the City are on normal commercial terms and conditions, no more favourable than those available to other parties, unless otherwise stated.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
21. JOINT ARRANGEMENTSActual Actual
2018/19 2017/18$ $
(a) Carrying Amount of Investment in Associate
Interest in Joint Venture - EMRC 76,392,781 71,724,264
Carrying amount at 1 July 71,724,264 67,074,404 - Share of associates total comprehensive income arising during the period 4,668,517 4,649,860 Carrying amount at 30 June 76,392,781 71,724,264
Share of joint operationsEastern Metropolitan Regional Council
City's portion of EMRC's net assets Total Investment in the Joint InvestmentCurrent Assets 42,087,879 38,880,563 Non-Current Assets 38,864,434 36,203,940 Total assets 80,952,313 75,084,503
Current liabilities 2,803,826 1,983,054 Non-Current Liabilities 1,755,706 1,377,185 Total liabilities 4,559,532 3,360,239
Net Assets 76,392,781 71,724,264
Change in equity 4,583,216 4,785,810 Changes in asset revaluation surplus 85,301 (135,949) Total other comprehensive income for the period 4,668,517 4,649,861
Joint Venture - Altone Park Leisure Centre
SIGNIFICANT ACCOUNTING POLICIESInterests in Joint Arrangements
The City has a 39.07% share in the net assets of the Eastern Metropolitan Regional Council (EMRC) as a member Council.
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities are required.
Separate joint arrangements providing joint ventures with an interest in net assets are classified as a joint venture and accounted for using the equity method. The equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the City's share of net assets of the associate. In addition, the City’s share of the profit or loss of the associate is included in the City’s profit or loss.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the arrangement. The City’s interests in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements.
The value of this investment is based on the City's share of Net Assets as disclosed in the Financial Statements of the EMRC for 2018/19. The City's investment in the EMRC has increased by $4,668,517 to $76,392,781.
In compliance with AASB128 the City's investment is accounted for using the equity method. The City's profit includes its share of the EMRC's profit and the City's other comprehensive income includes its share of the EMRC's other comprehensive income:
The City's of Swan and Bayswater entered into a joint venture to construct the Altone Park Leisure Centre at Benara Road, Beechboro. The centre was completed in 1995. No arrangement is in place for the joint management of the operations of the centre. The City of Swan is responsible for the management and financial outcomes of the Centre.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
22. MAJOR LAND TRANSACTIONS
New Junction (formerly Midland Oval Redevelopment)(a) Details
Actual Budget(b) Current Year Transactions 2018/19 2018/19
Revenue/Expenses $ $- Sale proceeds 2,539,431 -- Written Down Value of Land (2,790,645)Profit/(Loss) on Disposal (251,214) -AssetsInfrastructure 797,157 569,090Development Costs 277,933 -
1,075,090 569,090LiabilitiesBorrowings - -
- -Capital Expenditure
- Development Cost 277,933 -- Planning 76,468 -- Purchase/develop Land /Buildings and Infrastructure 720,689 569,090
1,075,090 569,090
(c) Expected Future Cash Flows2019/20 2020/21 2021/22 2022/23 Total
$ $ $ $ $Cash outflowsCapital expenditureDevelopment Costs- Planning costs (135,000) (100,000) (150,000) (150,000) (535,000)- Demolition costs - - (225,000) - (225,000)- Property Acquisition - - (4,396,500) - (4,396,500)Development Infrastructure- Roadworks (3,850,000) - - (3,453,758) (7,303,758)- Public Open Space (4,494,000) (3,000,000) - (3,634,428) (11,128,428)
(8,479,000) (3,100,000) (4,771,500) (7,238,186) (23,588,686)Cash inflows- Proceeds from sale of property 1,560,570 4,526,250 - - 6,086,820
1,560,570 4,526,250 - - 6,086,820Net cash flows (6,918,430) 1,426,250 (4,771,500) (7,238,186) (17,501,866)
Funding Source- Borrowings 6,550,000 3,000,000 3,500,000 7,088,186 20,138,186- Reserves applied 1,929,000 100,000 1,271,500 150,000 3,450,500- Transfers to Reserve (1,560,570) (4,526,250) - - (6,086,820)
6,918,430 (1,426,250) 4,771,500 7,238,186 17,501,866
The above operating revenue for the proceeds of land held for resale is reflected in other revenue and operating expenditure for the cost of the disposed land held for resale is reflected in other expenditure. (Note 7)
In August 2011, Council established a vision for the redevelopment of the precinct and gave direction to proceed with the project. The vision was for a mix of uses and activities built around an event space and public open space (POS). The precinct is to be lively, safe and have a strong sense of place.
The Midland Oval precinct comprises approximately 11 hectares of land bounded by Morrison Road, Keane Street, The Crescent and Sayer Street Midland. The City owns approximately 85% of the precinct.
The City has prepared a Midland Oval Redevelopment Plan (MORM) which was adopted by Council on 30 January 2017. Council resolved at its Ordinary Meeting of 11 April 2018 to advertise all four scenarios in the draft Business Plan and to conduct a three month public consultation period. The consultation period closed at the end of August 2018. At its Ordinary Meeting of 24 October 2018 Council approved the Midland Oval Redevelopment Precinct (MORP) Business Plan. The following information relates to transactions in the business plan arising from activity since the Council resolution of 24 October 2018.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
23
.C
ON
DIT
ION
S O
VER
GR
AN
TS/
CO
NTR
IBU
TIO
NS
Op
enin
gC
losi
ng
Clo
sin
gB
alan
ce (1
)R
ecei
ved
(2)
Bal
ance
(1)
Rec
eive
d (2
)Ex
pen
ded
(3
)B
alan
ceG
ran
ts/
Co
ntr
ibu
tio
ns
1/
07
/1
72
01
7/
18
30
/0
6/
18
20
18
/1
92
01
8/
19
30
/0
6/
19
Law
, ord
er &
pu
blic
saf
ety
Bus
h Fi
re B
riga
des
Gra
nt74
,826
29
8,73
0
(299
,301
)
74
,255
342,
241
(336
,986
)
79
,510
SVES
Gra
nt13
,628
64
,030
(65,
476)
12
,182
51,0
79
(4
6,74
1)
16,5
20
CC
TV S
afer
Sub
urbs
Gra
nt53
4,27
5
-
-
53
4,27
5
223,
499
(111
,877
)
64
5,89
7
Bri
gade
Equ
ipm
ent
Upg
rade
Gra
nt-
30
,000
-
30
,000
-
(30,
000)
-
Edu
cati
on a
nd
wel
fare
Com
mon
wea
lth
Hom
e Sup
port
Pro
gram
Gra
nt-
14
2,41
3
(109
,413
)
33
,000
-
(33,
000)
-
Hom
e C
are
Pack
age
Com
mun
ity
Car
eG
rant
-
691,
668
(5
07,9
58)
183,
710
33
0,11
3
(3
23,5
36)
190,
287
Com
mun
ity
Led
Proj
ects
- N
orth
Sub
Reg
ion
Gra
nt-
57
,000
(38,
500)
18
,500
37,0
00
(3
7,00
0)
18,5
00
Rec
reat
ion
an
d c
ult
ure
Nat
ural
Env
iron
men
t -
Bus
hlan
d M
aint
enan
ceG
rant
5,15
2
-
(5,1
52)
-
-
-
-
Nat
ural
Env
iron
men
t -
Wet
land
Mai
nten
ance
Gra
nt21
,839
-
(2
1,83
9)
-
-
-
-
Yaga
n M
emor
ial P
ark
- M
aint
enan
ceG
rant
122,
727
-
(122
,727
)
-
-
-
-
El
lenb
rook
Lib
rary
Gra
nt5,
421
-
(5
,421
)
-
-
-
-
M
idla
nd S
port
s C
ompl
exG
rant
-
40,0
00
-
40,0
00
-
(4
0,00
0)
-
Sol
ar H
ot W
ater
Sys
tem
Gra
nt-
10
,000
(9,4
97)
503
-
-
50
3
Elle
nbro
ok R
ecre
atio
n C
entr
eG
rant
-
2,00
0,00
0
-
2,00
0,00
0
-
-
2,00
0,00
0
Perc
y C
ulle
n O
val
Gra
nt-
50
,000
(18,
754)
31
,246
-
(31,
246)
-
Tour
ism
Sig
nage
Gra
nt-
49
,568
(34,
287)
15
,281
-
(15,
281)
-
Ron
Jos
e O
val
Gra
nt-
35
0,00
0
(6,9
66)
343,
034
-
-
343,
034
Sw
an V
iew
Ova
lG
rant
-
100,
000
(9
5,05
0)
4,95
0
-
(4,9
50)
-
Fore
shor
e Res
tora
tion
- W
oodb
ridg
eG
rant
-
84,7
50
-
84,7
50
-
(8
4,75
0)
-
Fo
resh
ore
Res
tora
tion
- M
iddl
e Sw
anG
rant
-
226,
000
-
226,
000
-
(8
0,69
2)
145,
308
Man
agem
ent
Plan
Tou
rism
- S
wan
Val
ley
Gra
nt-
50
,000
-
50
,000
50,0
00
(4
5,00
0)
55,0
00
Gui
ldfo
rd T
ouri
sm D
evel
opm
ent
Gra
nt-
10
0,00
0
-
10
0,00
0
-
-
10
0,00
0
Pu
blic
Art
Con
trib
utio
ns73
7,98
7
14
,000
(339
,601
)
41
2,38
6
40,0
00
(1
01,9
39)
350,
447
Be
Con
nect
edG
rant
-
-
-
-
12
0,00
0
(1
12,9
23)
7,07
7
C
omm
unity
Sup
port
Gra
nt-
-
-
-
15,0
00
(5
,000
)
10,0
00
Bro
ckm
an C
omm
unity
Cen
tre
Gra
nt-
-
-
-
100,
000
-
10
0,00
0
Stirl
ing
Squ
are
Publ
ic A
rtG
rant
-
-
-
-
20
6,61
2
-
206,
612
Tran
spor
t
Wes
t Sw
an R
oad
Gra
nt-
20
0,00
0
(80,
000)
12
0,00
0
200,
000
(25,
482)
29
4,51
8
W
est
Sw
an R
oad/
Mill
hous
e Roa
dG
rant
-
826,
400
(3
30,5
60)
495,
840
82
6,40
0
(1
,063
,224
)
25
9,01
6
C
unni
ngha
m R
oad
Gra
nt-
49
3,21
2
(485
,680
)
7,
532
-
(7
,532
)
-
Sw
an R
oadw
ise
Com
mitte
eG
rant
4,01
7
-
(1
,853
)
2,
164
-
(5
49)
1,
615
Mea
dow
Str
eet
Gra
nt35
0,92
9
-
(350
,929
)
-
-
-
-
N
eave
s Roa
dG
rant
3,16
5
-
-
3,16
5
-
(3,1
65)
-
Dra
inag
e C
ontr
ibut
ions
Con
trib
utio
ns69
,584
-
-
69
,584
3,50
0
-
73
,084
Fo
otpa
th C
ontr
ibut
ions
Con
trib
utio
ns24
2,25
8
-
-
24
2,25
8
-
-
24
2,25
8
M
alag
a Pa
rkin
g C
ontr
ibut
ions
Con
trib
utio
ns19
7,00
0
13
6,50
0
(99,
631)
23
3,86
9
49,0
00
(4
9,99
9)
232,
870
Mid
land
Par
king
Con
trib
utio
nsCon
trib
utio
ns35
,000
35
,000
7,00
0
(11,
230)
30
,770
G
uild
ford
Par
king
Con
trib
utio
nsCon
trib
utio
ns-
10
,500
-
10
,500
-
-
10
,500
El
lenb
rook
Par
king
Con
trib
utio
nsCon
trib
utio
ns64
,785
11
3,50
1
-
17
8,28
6
-
-
17
8,28
6
Roa
dwor
k C
ontr
ibut
ions
Con
trib
utio
ns2,
530,
517
303,
164
(6
6,94
0)
2,76
6,74
1
14
8,93
3
(5
,200
)
2,91
0,47
4
Dru
mpe
llier
Dri
veG
rant
-
-
-
-
800,
000
(580
,456
)
21
9,54
4
Tota
l5,
013,
110
6,44
1,43
6
(3
,095
,535
)8,
359,
011
3,55
0,37
7
(3
,187
,758
)
8,
721,
630
Not
es:
Gra
nts
held
in R
eser
ves
4,69
2,94
1
(1)
- G
rant
s/co
ntri
bution
s re
cogn
ised
as
reve
nue
in a
pre
viou
s re
port
ing
peri
od w
hich
wer
e no
t ex
pend
ed a
t th
e cl
ose
of t
he p
revi
ous
repo
rtin
g pe
riod
.C
ontr
ibut
ions
hel
d in
Res
tric
ted
Fund
s4,
028,
689
(2
) -
New
gra
nts/
cont
ribu
tion
s w
hich
wer
e re
cogn
ised
as
reve
nues
dur
ing
the
repo
rtin
g pe
riod
and
whi
ch h
ad n
ot y
et b
een
fully
exp
ende
d in
the
man
ner
spec
ified
by
the
cont
ribu
tor.
8,72
1,63
0
20
17
/1
8Ex
pen
ded
(3
)
(3)
- G
rant
s/co
ntri
bution
s w
hich
had
bee
n re
cogn
ised
as
reve
nues
in a
pre
viou
s re
port
ing
peri
od o
r re
ceiv
ed in
the
cur
rent
rep
orting
per
iod
and
whi
ch w
ere
expe
nded
in t
he cu
rren
t re
port
ing
peri
od in
the
man
ner
spec
ified
by
the
cont
ribu
tor.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
22. MAJOR LAND TRANSACTIONS
New Junction (formerly Midland Oval Redevelopment)(a) Details
Actual Budget(b) Current Year Transactions 2018/19 2018/19
Revenue/Expenses $ $- Sale proceeds 2,539,431 -- Written Down Value of Land (2,790,645)Profit/(Loss) on Disposal (251,214) -AssetsInfrastructure 797,157 569,090Development Costs 277,933 -
1,075,090 569,090LiabilitiesBorrowings - -
- -Capital Expenditure
- Development Cost 277,933 -- Planning 76,468 -- Purchase/develop Land /Buildings and Infrastructure 720,689 569,090
1,075,090 569,090
(c) Expected Future Cash Flows2019/20 2020/21 2021/22 2022/23 Total
$ $ $ $ $Cash outflowsCapital expenditureDevelopment Costs- Planning costs (135,000) (100,000) (150,000) (150,000) (535,000)- Demolition costs - - (225,000) - (225,000)- Property Acquisition - - (4,396,500) - (4,396,500)Development Infrastructure- Roadworks (3,850,000) - - (3,453,758) (7,303,758)- Public Open Space (4,494,000) (3,000,000) - (3,634,428) (11,128,428)
(8,479,000) (3,100,000) (4,771,500) (7,238,186) (23,588,686)Cash inflows- Proceeds from sale of property 1,560,570 4,526,250 - - 6,086,820
1,560,570 4,526,250 - - 6,086,820Net cash flows (6,918,430) 1,426,250 (4,771,500) (7,238,186) (17,501,866)
Funding Source- Borrowings 6,550,000 3,000,000 3,500,000 7,088,186 20,138,186- Reserves applied 1,929,000 100,000 1,271,500 150,000 3,450,500- Transfers to Reserve (1,560,570) (4,526,250) - - (6,086,820)
6,918,430 (1,426,250) 4,771,500 7,238,186 17,501,866
The above operating revenue for the proceeds of land held for resale is reflected in other revenue and operating expenditure for the cost of the disposed land held for resale is reflected in other expenditure. (Note 7)
In August 2011, Council established a vision for the redevelopment of the precinct and gave direction to proceed with the project. The vision was for a mix of uses and activities built around an event space and public open space (POS). The precinct is to be lively, safe and have a strong sense of place.
The Midland Oval precinct comprises approximately 11 hectares of land bounded by Morrison Road, Keane Street, The Crescent and Sayer Street Midland. The City owns approximately 85% of the precinct.
The City has prepared a Midland Oval Redevelopment Plan (MORM) which was adopted by Council on 30 January 2017. Council resolved at its Ordinary Meeting of 11 April 2018 to advertise all four scenarios in the draft Business Plan and to conduct a three month public consultation period. The consultation period closed at the end of August 2018. At its Ordinary Meeting of 24 October 2018 Council approved the Midland Oval Redevelopment Precinct (MORP) Business Plan. The following information relates to transactions in the business plan arising from activity since the Council resolution of 24 October 2018.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
23
.C
ON
DIT
ION
S O
VER
GR
AN
TS/
CO
NTR
IBU
TIO
NS
Op
enin
gC
losi
ng
Clo
sin
gB
alan
ce (1
)R
ecei
ved
(2)
Bal
ance
(1)
Rec
eive
d (2
)Ex
pen
ded
(3
)B
alan
ceG
ran
ts/
Co
ntr
ibu
tio
ns
1/
07
/1
72
01
7/
18
30
/0
6/
18
20
18
/1
92
01
8/
19
30
/0
6/
19
Law
, ord
er &
pu
blic
saf
ety
Bus
h Fi
re B
riga
des
Gra
nt74
,826
29
8,73
0
(299
,301
)
74
,255
342,
241
(336
,986
)
79
,510
SVES
Gra
nt13
,628
64
,030
(65,
476)
12
,182
51,0
79
(4
6,74
1)
16,5
20
CC
TV S
afer
Sub
urbs
Gra
nt53
4,27
5
-
-
53
4,27
5
223,
499
(111
,877
)
64
5,89
7
Bri
gade
Equ
ipm
ent
Upg
rade
Gra
nt-
30
,000
-
30
,000
-
(30,
000)
-
Edu
cati
on a
nd
wel
fare
Com
mon
wea
lth
Hom
e Sup
port
Pro
gram
Gra
nt-
14
2,41
3
(109
,413
)
33
,000
-
(33,
000)
-
Hom
e C
are
Pack
age
Com
mun
ity
Car
eG
rant
-
691,
668
(5
07,9
58)
183,
710
33
0,11
3
(3
23,5
36)
190,
287
Com
mun
ity
Led
Proj
ects
- N
orth
Sub
Reg
ion
Gra
nt-
57
,000
(38,
500)
18
,500
37,0
00
(3
7,00
0)
18,5
00
Rec
reat
ion
an
d c
ult
ure
Nat
ural
Env
iron
men
t -
Bus
hlan
d M
aint
enan
ceG
rant
5,15
2
-
(5,1
52)
-
-
-
-
Nat
ural
Env
iron
men
t -
Wet
land
Mai
nten
ance
Gra
nt21
,839
-
(2
1,83
9)
-
-
-
-
Yaga
n M
emor
ial P
ark
- M
aint
enan
ceG
rant
122,
727
-
(122
,727
)
-
-
-
-
El
lenb
rook
Lib
rary
Gra
nt5,
421
-
(5
,421
)
-
-
-
-
M
idla
nd S
port
s C
ompl
exG
rant
-
40,0
00
-
40,0
00
-
(4
0,00
0)
-
Sol
ar H
ot W
ater
Sys
tem
Gra
nt-
10
,000
(9,4
97)
503
-
-
50
3
Elle
nbro
ok R
ecre
atio
n C
entr
eG
rant
-
2,00
0,00
0
-
2,00
0,00
0
-
-
2,00
0,00
0
Perc
y C
ulle
n O
val
Gra
nt-
50
,000
(18,
754)
31
,246
-
(31,
246)
-
Tour
ism
Sig
nage
Gra
nt-
49
,568
(34,
287)
15
,281
-
(15,
281)
-
Ron
Jos
e O
val
Gra
nt-
35
0,00
0
(6,9
66)
343,
034
-
-
343,
034
Sw
an V
iew
Ova
lG
rant
-
100,
000
(9
5,05
0)
4,95
0
-
(4,9
50)
-
Fore
shor
e Res
tora
tion
- W
oodb
ridg
eG
rant
-
84,7
50
-
84,7
50
-
(8
4,75
0)
-
Fo
resh
ore
Res
tora
tion
- M
iddl
e Sw
anG
rant
-
226,
000
-
226,
000
-
(8
0,69
2)
145,
308
Man
agem
ent
Plan
Tou
rism
- S
wan
Val
ley
Gra
nt-
50
,000
-
50
,000
50,0
00
(4
5,00
0)
55,0
00
Gui
ldfo
rd T
ouri
sm D
evel
opm
ent
Gra
nt-
10
0,00
0
-
10
0,00
0
-
-
10
0,00
0
Pu
blic
Art
Con
trib
utio
ns73
7,98
7
14
,000
(339
,601
)
41
2,38
6
40,0
00
(1
01,9
39)
350,
447
Be
Con
nect
edG
rant
-
-
-
-
12
0,00
0
(1
12,9
23)
7,07
7
C
omm
unity
Sup
port
Gra
nt-
-
-
-
15,0
00
(5
,000
)
10,0
00
Bro
ckm
an C
omm
unity
Cen
tre
Gra
nt-
-
-
-
100,
000
-
10
0,00
0
Stirl
ing
Squ
are
Publ
ic A
rtG
rant
-
-
-
-
20
6,61
2
-
206,
612
Tran
spor
t
Wes
t Sw
an R
oad
Gra
nt-
20
0,00
0
(80,
000)
12
0,00
0
200,
000
(25,
482)
29
4,51
8
W
est
Sw
an R
oad/
Mill
hous
e Roa
dG
rant
-
826,
400
(3
30,5
60)
495,
840
82
6,40
0
(1
,063
,224
)
25
9,01
6
C
unni
ngha
m R
oad
Gra
nt-
49
3,21
2
(485
,680
)
7,
532
-
(7
,532
)
-
Sw
an R
oadw
ise
Com
mitte
eG
rant
4,01
7
-
(1
,853
)
2,
164
-
(5
49)
1,
615
Mea
dow
Str
eet
Gra
nt35
0,92
9
-
(350
,929
)
-
-
-
-
N
eave
s Roa
dG
rant
3,16
5
-
-
3,16
5
-
(3,1
65)
-
Dra
inag
e C
ontr
ibut
ions
Con
trib
utio
ns69
,584
-
-
69
,584
3,50
0
-
73
,084
Fo
otpa
th C
ontr
ibut
ions
Con
trib
utio
ns24
2,25
8
-
-
24
2,25
8
-
-
24
2,25
8
M
alag
a Pa
rkin
g C
ontr
ibut
ions
Con
trib
utio
ns19
7,00
0
13
6,50
0
(99,
631)
23
3,86
9
49,0
00
(4
9,99
9)
232,
870
Mid
land
Par
king
Con
trib
utio
nsCon
trib
utio
ns35
,000
35
,000
7,00
0
(11,
230)
30
,770
G
uild
ford
Par
king
Con
trib
utio
nsCon
trib
utio
ns-
10
,500
-
10
,500
-
-
10
,500
El
lenb
rook
Par
king
Con
trib
utio
nsCon
trib
utio
ns64
,785
11
3,50
1
-
17
8,28
6
-
-
17
8,28
6
Roa
dwor
k C
ontr
ibut
ions
Con
trib
utio
ns2,
530,
517
303,
164
(6
6,94
0)
2,76
6,74
1
14
8,93
3
(5
,200
)
2,91
0,47
4
Dru
mpe
llier
Dri
veG
rant
-
-
-
-
800,
000
(580
,456
)
21
9,54
4
Tota
l5,
013,
110
6,44
1,43
6
(3
,095
,535
)8,
359,
011
3,55
0,37
7
(3
,187
,758
)
8,
721,
630
Not
es:
Gra
nts
held
in R
eser
ves
4,69
2,94
1
(1)
- G
rant
s/co
ntri
bution
s re
cogn
ised
as
reve
nue
in a
pre
viou
s re
port
ing
peri
od w
hich
wer
e no
t ex
pend
ed a
t th
e cl
ose
of t
he p
revi
ous
repo
rtin
g pe
riod
.C
ontr
ibut
ions
hel
d in
Res
tric
ted
Fund
s4,
028,
689
(2
) -
New
gra
nts/
cont
ribu
tion
s w
hich
wer
e re
cogn
ised
as
reve
nues
dur
ing
the
repo
rtin
g pe
riod
and
whi
ch h
ad n
ot y
et b
een
fully
exp
ende
d in
the
man
ner
spec
ified
by
the
cont
ribu
tor.
8,72
1,63
0
20
17
/1
8Ex
pen
ded
(3
)
(3)
- G
rant
s/co
ntri
bution
s w
hich
had
bee
n re
cogn
ised
as
reve
nues
in a
pre
viou
s re
port
ing
peri
od o
r re
ceiv
ed in
the
cur
rent
rep
orting
per
iod
and
whi
ch w
ere
expe
nded
in t
he cu
rren
t re
port
ing
peri
od in
the
man
ner
spec
ified
by
the
cont
ribu
tor.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
24
.R
ATI
NG
IN
FOR
MA
TIO
N(a
)R
ates
RA
TE T
YP
ER
ate
inN
um
ber
of
Rat
eab
leR
ates
Inte
rim
Bac
kTo
tal
20
18
/19
20
17
/18
Dif
fere
nti
al g
ener
al r
ate
$P
rop
erti
esV
alu
eLe
vied
Rat
esR
ates
Rev
enu
eB
ud
get
Act
ual
$$
$$
$$
$7.
4124
48,3
3891
0,49
7,22
667
,489
,696
2,17
8,32
4-
69,6
68,0
2067
,564
,623
66,3
06,2
929.
0476
3,42
838
0,58
5,37
534
,433
,842
357,
050
-
34
,790
,892
34,5
39,5
7428
,978
,691
-
-
-
-
38
,781
38,7
81-
5,28
5,82
814
.824
651
38,5
77,6
715,
718,
985
-
-
5,
718,
985
5,71
3,05
65,
617,
815
Sto
rage
Uni
ts9.
0476
117
,760
1,60
7-
-
1,60
7-
1,57
8-
-
-
-
-
-
1,
000,
000
(399
,600
)G
ross
ren
tal v
alua
tions
51,8
181,
329,
678,
032
107,
644,
130
2,53
5,37
438
,781
110,
218,
285
108,
817,
253
105,
790,
604
Un
imp
rove
d v
alu
atio
ns
0.37
908
3,46
92,
043,
483,
000
7,74
6,43
514
,987
-
7,
761,
422
7,71
7,61
47,
621,
579
0.54
510
2859
,990
,000
327,
005
287
-
32
7,29
232
9,07
733
0,22
60.
2725
649
445
1,33
5,00
01,
230,
159
(8,4
90)
-
1,
221,
669
1,23
9,20
81,
220,
178
-
-
-
-
(3
,629
)(3
,629
)-
(1,3
43)
Uni
mpr
oved
val
uatio
ns3,
991
2,55
4,80
8,00
09,
303,
599
6,78
4(3
,629
)9,
306,
754
9,28
5,89
99,
170,
640
Tota
l Lev
ied
55,8
0911
6,94
7,72
92,
542,
158
35,1
5211
9,52
5,03
911
8,10
3,15
211
4,96
1,24
4$
No
$$
$$
$$
$
880
3,04
422
,028
,724
2,67
8,72
0-
-
2,67
8,72
02,
677,
840
2,63
3,92
51,
400
341
3,97
8,66
947
7,40
0-
-
477,
400
583,
800
429,
000
-
-
-
--
-
-
-
57
,750
1,69
0-
-
-
-
-
-
-
-
1,
400
7550
6,15
010
5,00
0-
-
105,
000
-
50
,235
-
-
-
-
-
-
-
(1
1,93
2)G
ross
ren
tal v
alua
tions
3,46
026
,513
,543
3,26
1,12
0-
-
3,26
1,12
03,
261,
640
3,15
8,97
8U
nim
pro
ved
val
uat
ion
s88
048
7,88
5,75
042
,240
-
-
42
,240
44,0
0038
,925
880
1616
8,33
614
,080
-
-
14
,080
14,0
8012
,975
880
92,
675,
000
7,92
0-
-
7,92
09,
680
10,3
80-
-
-
-
-
-
-
(9)
Uni
mpr
oved
val
uatio
ns73
10,7
29,0
8664
,240
-
-
64
,240
67,7
6062
,271
Tota
l Min
imum
3,53
33,
325,
360
-
-
3,
325,
360
3,32
9,40
03,
221,
249
Tota
l59
,342
120,
273,
089
6,78
435
,152
122,
850,
399
121,
432,
552
118,
182,
493
Tota
l am
oun
t ra
ised
fro
m g
ener
al r
ate
122,
850,
399
121,
432,
552
118,
182,
493
Spe
cifie
d Are
a Rat
e (r
efer
Not
e 24
(b))
2,79
0,30
82,
774,
320
2,69
5,77
3Con
cess
ions
(re
fer
Not
e 24
(d))
(124
,284
)(1
34,6
71)
(109
,065
)W
rite
-offs
(8,6
72)
(10,
000)
(7,6
16)
3,92
3,96
93,
795,
829
3,85
2,92
9Rat
es p
aid
in a
dvan
ce1,
024,
823
-
1,
163,
672
Tota
ls13
0,45
6,54
312
7,85
8,03
012
5,77
8,18
6S
IGN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
Con
trol
ove
r as
sets
acq
uire
d fr
om r
ates
is o
btai
ned
at t
he c
omm
ence
men
t of
the
rat
ing
peri
od o
r, w
here
ear
lier,
upo
n re
ceip
t of
the
rat
es.
Ex-g
ratia
rate
s
Res
iden
tial
Com
mer
cial
/Ind
ustr
ial
City
Cen
tre
Hea
vy I
ndus
try
Inte
rim
and
Bac
k Rat
es
Com
mer
cial
/Ind
ustr
ial
City
Cen
tre
Hea
vy I
ndus
try
UV G
ener
alU
V C
omm
erci
al
Inte
rim
and
Bac
k Rat
es
UV G
ener
alU
V C
omm
erci
al
Inte
rim
and
Bac
k Rat
es
Res
iden
tial
Inte
rim
and
Bac
k Rat
es
Farm
land
Farm
land
Sto
rage
Uni
ts
Gro
ss r
enta
l va
luat
ion
s
Min
imu
m p
aym
ent
Gro
ss r
enta
l va
luat
ion
s
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
24. RATING INFORMATION (Continued)
(b) Specified Area RateMidland District Drainage/Guildford District Drainage
Hazelmere Industrial Area Infrastructure (GRV/UV)
2018/19 Basis Rate in $ Valuations RevenueMidland District Drainage GRV 0.594300 185,619,497 1,129,857Hazelmere/Guildford District Drainage GRV 0.602400 51,426,786 313,216GRV Hazelmere Industrial Area Infrastructure GRV 3.366740 36,504,868 1,232,755UV Hazelmere Industrial Area Infrastructure UV 0.105755 108,250,200 114,480
381,801,351 2,790,3082018/19 Revenue Budget 2017/18
Applied to Reserve revenue applied RevenueMidland District Drainage 1,129,857 1,111,290 1,111,290 1,076,548Hazelmere/Guildford District Drainage 313,216 311,780 311,780 306,481GRV Hazelmere Industrial Area Infrastructure 1,232,755 1,234,180 1,234,180 1,197,743UV Hazelmere Industrial Area Infrastructure 114,480 117,070 117,070 115,001
2,790,308 2,774,320 2,774,320 2,695,773(c) Service Charges
Actual Budget Actual2018/19 2018/19 2017/18
The Vines Security 801 - 305,622Ellenbrook Security (100) - 929,412
701 - 1,235,034
The Water Corporation does not perform drainage works, or levy a drainage rate, in the Midland, Guildford, South Guildford, and parts of Woodbridge, Viveash and Hazelmere Districts (apart from a small number of properties).The City is responsible for construction and maintenance of drainage infrastructure within this area, and the total cost to carry out these works over a number of years is estimated at more than $25 million.Council introduced Specified Area Rates in 2004/05 as an equitable way of raising part of the funds.The Specified Area Rate for Midland Drainage District was set at 0.5943 cents in the dollar, and would apply to all GRV rateable properties in the Midland District.
The Specified Area Rate for Hazelmere/Guildford Drainage District was set at 0.6024 cents in the dollar, and apply to all GRV rateable properties in the Guildford, South Guildford, Woodbridge and parts of Viveash and Hazelmere Districts (apart from a small number of properties).
From 1 July 2015, Council introduced two (2) Specified Area Rates "GRV Hazelmere Industrial Area Infrastructure and UV Hazelmere Industrial Area Infrastructure" based on the basis of valuation applied to the property GRV or UV.The City is responsible for construction and maintenance of the roads and drainage infrastructure within this area, and the total cost to carry out these works over a number of years is estimated at more than $69 million.
Council introduced specified area rates as an equitable way of raising part of the needed funds.The specified area rate was set at 3.366740 cents in the dollar for GRV Hazelmere Industrial Area Infrastructure and 0.105755 cents in the dollar for UV Hazelmere Industrial Area Infrastructure.
No service charge was levied in 2018/19. However, backing rating and adjustments were raised for charges in 2017/18.
NO
TES
TO
, A
ND
FO
RM
ING
PA
RT
OF,
TH
E FI
NA
NC
IAL
REP
OR
T FO
R T
HE
YEA
R E
ND
ED 3
0 J
UN
E 2
01
9
24
.R
ATI
NG
IN
FOR
MA
TIO
N(a
)R
ates
RA
TE T
YP
ER
ate
inN
um
ber
of
Rat
eab
leR
ates
Inte
rim
Bac
kTo
tal
20
18
/19
20
17
/18
Dif
fere
nti
al g
ener
al r
ate
$P
rop
erti
esV
alu
eLe
vied
Rat
esR
ates
Rev
enu
eB
ud
get
Act
ual
$$
$$
$$
$7.
4124
48,3
3891
0,49
7,22
667
,489
,696
2,17
8,32
4-
69,6
68,0
2067
,564
,623
66,3
06,2
929.
0476
3,42
838
0,58
5,37
534
,433
,842
357,
050
-
34
,790
,892
34,5
39,5
7428
,978
,691
-
-
-
-
38
,781
38,7
81-
5,28
5,82
814
.824
651
38,5
77,6
715,
718,
985
-
-
5,
718,
985
5,71
3,05
65,
617,
815
Sto
rage
Uni
ts9.
0476
117
,760
1,60
7-
-
1,60
7-
1,57
8-
-
-
-
-
-
1,
000,
000
(399
,600
)G
ross
ren
tal v
alua
tions
51,8
181,
329,
678,
032
107,
644,
130
2,53
5,37
438
,781
110,
218,
285
108,
817,
253
105,
790,
604
Un
imp
rove
d v
alu
atio
ns
0.37
908
3,46
92,
043,
483,
000
7,74
6,43
514
,987
-
7,
761,
422
7,71
7,61
47,
621,
579
0.54
510
2859
,990
,000
327,
005
287
-
32
7,29
232
9,07
733
0,22
60.
2725
649
445
1,33
5,00
01,
230,
159
(8,4
90)
-
1,
221,
669
1,23
9,20
81,
220,
178
-
-
-
-
(3
,629
)(3
,629
)-
(1,3
43)
Uni
mpr
oved
val
uatio
ns3,
991
2,55
4,80
8,00
09,
303,
599
6,78
4(3
,629
)9,
306,
754
9,28
5,89
99,
170,
640
Tota
l Lev
ied
55,8
0911
6,94
7,72
92,
542,
158
35,1
5211
9,52
5,03
911
8,10
3,15
211
4,96
1,24
4$
No
$$
$$
$$
$
880
3,04
422
,028
,724
2,67
8,72
0-
-
2,67
8,72
02,
677,
840
2,63
3,92
51,
400
341
3,97
8,66
947
7,40
0-
-
477,
400
583,
800
429,
000
-
-
-
--
-
-
-
57
,750
1,69
0-
-
-
-
-
-
-
-
1,
400
7550
6,15
010
5,00
0-
-
105,
000
-
50
,235
-
-
-
-
-
-
-
(1
1,93
2)G
ross
ren
tal v
alua
tions
3,46
026
,513
,543
3,26
1,12
0-
-
3,26
1,12
03,
261,
640
3,15
8,97
8U
nim
pro
ved
val
uat
ion
s88
048
7,88
5,75
042
,240
-
-
42
,240
44,0
0038
,925
880
1616
8,33
614
,080
-
-
14
,080
14,0
8012
,975
880
92,
675,
000
7,92
0-
-
7,92
09,
680
10,3
80-
-
-
-
-
-
-
(9)
Uni
mpr
oved
val
uatio
ns73
10,7
29,0
8664
,240
-
-
64
,240
67,7
6062
,271
Tota
l Min
imum
3,53
33,
325,
360
-
-
3,
325,
360
3,32
9,40
03,
221,
249
Tota
l59
,342
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NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
24. RATING INFORMATION (Continued)
(b) Specified Area RateMidland District Drainage/Guildford District Drainage
Hazelmere Industrial Area Infrastructure (GRV/UV)
2018/19 Basis Rate in $ Valuations RevenueMidland District Drainage GRV 0.594300 185,619,497 1,129,857Hazelmere/Guildford District Drainage GRV 0.602400 51,426,786 313,216GRV Hazelmere Industrial Area Infrastructure GRV 3.366740 36,504,868 1,232,755UV Hazelmere Industrial Area Infrastructure UV 0.105755 108,250,200 114,480
381,801,351 2,790,3082018/19 Revenue Budget 2017/18
Applied to Reserve revenue applied RevenueMidland District Drainage 1,129,857 1,111,290 1,111,290 1,076,548Hazelmere/Guildford District Drainage 313,216 311,780 311,780 306,481GRV Hazelmere Industrial Area Infrastructure 1,232,755 1,234,180 1,234,180 1,197,743UV Hazelmere Industrial Area Infrastructure 114,480 117,070 117,070 115,001
2,790,308 2,774,320 2,774,320 2,695,773(c) Service Charges
Actual Budget Actual2018/19 2018/19 2017/18
The Vines Security 801 - 305,622Ellenbrook Security (100) - 929,412
701 - 1,235,034
The Water Corporation does not perform drainage works, or levy a drainage rate, in the Midland, Guildford, South Guildford, and parts of Woodbridge, Viveash and Hazelmere Districts (apart from a small number of properties).The City is responsible for construction and maintenance of drainage infrastructure within this area, and the total cost to carry out these works over a number of years is estimated at more than $25 million.Council introduced Specified Area Rates in 2004/05 as an equitable way of raising part of the funds.The Specified Area Rate for Midland Drainage District was set at 0.5943 cents in the dollar, and would apply to all GRV rateable properties in the Midland District.
The Specified Area Rate for Hazelmere/Guildford Drainage District was set at 0.6024 cents in the dollar, and apply to all GRV rateable properties in the Guildford, South Guildford, Woodbridge and parts of Viveash and Hazelmere Districts (apart from a small number of properties).
From 1 July 2015, Council introduced two (2) Specified Area Rates "GRV Hazelmere Industrial Area Infrastructure and UV Hazelmere Industrial Area Infrastructure" based on the basis of valuation applied to the property GRV or UV.The City is responsible for construction and maintenance of the roads and drainage infrastructure within this area, and the total cost to carry out these works over a number of years is estimated at more than $69 million.
Council introduced specified area rates as an equitable way of raising part of the needed funds.The specified area rate was set at 3.366740 cents in the dollar for GRV Hazelmere Industrial Area Infrastructure and 0.105755 cents in the dollar for UV Hazelmere Industrial Area Infrastructure.
No service charge was levied in 2018/19. However, backing rating and adjustments were raised for charges in 2017/18.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
(d) Discounts, Incentives, Concessions, & Write-offsDiscounts
Early Payment Incentive
Concessions
Heritage Concession
Strata Titled Storage Units Concession
Sporting Clubs Concession
Whiteman Park Properties
Actual Budget ActualConcessions 2018/19 2018/19 2017/18Strata Titled Storage Unit 53,867 53,861 52,891Heritage 14,007 24,062 11,500Sporting Clubs 56,410 56,748 44,674Whiteman Park - - -
124,284 134,671 109,065
(e) Interest Charges & Instalments
Instalment fees and interest
Arrears
Actual Budget Actual2018/19 2018/19 2017/18
Interest on instalment plan 5.00% 5.00% 5.00%Interest on arrears 5.00% 5.00% 5.00%
Emergency services levy
A rating concession of approximately 58% of minimum rates for commercial properties is applied to strata titled storage units appropriately zoned and used. This concession acknowledges the fact that the vast majority, if not all, strata titled storage units occupy a very small area and require little and infrequent use of Council’s facilities and services. Minimum rates are reviewed each year and was set at $585 per unit.
No administration charge is imposed for ratepayers entering into the formal rates instalment program. (Section 6.45)
No discount is offered for early payment of rates under section 6.46 of the Local Government Act 1995.
An incentive In accordance with Section 6.46 of the Local Government Act 1995 and regulation 26 of the Local Government (Financial Management) Regulations 1996 in the form of 12 prizes was made available to ratepayers who pay their rates in full by the due date.
A 50% concession will apply to residential heritage listed properties on the City of Swan register upon application to Council each year (as per section 6.47 of the Local Government Act 1995).
A 75% concession applies to recreational and sporting associations upon application to Council each year.
A rating concession of 100% applies to all 22 privately leased and licensed agreements in existence at Whiteman Park.The City does not provide services to Whiteman Park and the ‘commercial’ operations are small scale in nature and related to the tourist trade - which enhances the attraction of the park. The Valuer General has not provided valuations and the Water Corporation do not rate these properties.
Penalty interest is be levied on all overdue emergency services levy at the rate declared and gazetted by the Minister for Emergency Services.
Interest charges do not apply to current rates due by registered Pensioners or Seniors.In accordance with section 6.45 of the Local Government Act 1995 and regulation 68 of the Local
Arrears In accordance with sections 6.13 and 6.51 of the Local Government Act 1995 and Regulations 19A and 70 of the Local Government (Financial Management) Regulations 1996, a 5% penalty interest charge was levied on a daily basis on all Rates and Specified Area Rates unpaid after the due date (Penalty interest does not apply to current rates due by registered Pensioners or Seniors).
In addition penalty interest was levied on all overdue emergency services levy at the rate declared and gazetted by the Minister for Emergency Services.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Pensioners and Seniors
Date Unpaid RatesInstalment Options Due Admin Charge Interest Rate Interest
Option One $ % %Prompt payment for prize draw 31 Aug 2018 - 0.00% 0.00%Option Two (four instalments)1st payment 31 Aug 2018 - 0.00% 0.00%2nd payment 02 Nov 2018 - 5.00% 5.00%3rd payment 18 Jan 2019 - 5.00% 5.00%4th payment 22 Mar 2019 - 5.00% 5.00%
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Interest on unpaid rates 5.00% 795,980 650,000 587,895Interest on instalment plan 5.00% 654,245 600,000 597,301
1,450,224 1,250,000 1,185,196ESL interest 222,112 120,000 204,921
1,672,336 1,370,000 1,390,117
Instalment Plan
Pensioners who hold an eligible Pensioner Concession Card may be entitled to receive Pensioner Rates Concession and are exempt from interest charges. Seniors who hold a Senior Card and/or a Commonwealth Senior’s Health Card may also be entitled to Rates Concession as per Rates and Charges (Rebates and Deferred) Act 1992 (as amended in 2001).
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
(d) Discounts, Incentives, Concessions, & Write-offsDiscounts
Early Payment Incentive
Concessions
Heritage Concession
Strata Titled Storage Units Concession
Sporting Clubs Concession
Whiteman Park Properties
Actual Budget ActualConcessions 2018/19 2018/19 2017/18Strata Titled Storage Unit 53,867 53,861 52,891Heritage 14,007 24,062 11,500Sporting Clubs 56,410 56,748 44,674Whiteman Park - - -
124,284 134,671 109,065
(e) Interest Charges & Instalments
Instalment fees and interest
Arrears
Actual Budget Actual2018/19 2018/19 2017/18
Interest on instalment plan 5.00% 5.00% 5.00%Interest on arrears 5.00% 5.00% 5.00%
Emergency services levy
A rating concession of approximately 58% of minimum rates for commercial properties is applied to strata titled storage units appropriately zoned and used. This concession acknowledges the fact that the vast majority, if not all, strata titled storage units occupy a very small area and require little and infrequent use of Council’s facilities and services. Minimum rates are reviewed each year and was set at $585 per unit.
No administration charge is imposed for ratepayers entering into the formal rates instalment program. (Section 6.45)
No discount is offered for early payment of rates under section 6.46 of the Local Government Act 1995.
An incentive In accordance with Section 6.46 of the Local Government Act 1995 and regulation 26 of the Local Government (Financial Management) Regulations 1996 in the form of 12 prizes was made available to ratepayers who pay their rates in full by the due date.
A 50% concession will apply to residential heritage listed properties on the City of Swan register upon application to Council each year (as per section 6.47 of the Local Government Act 1995).
A 75% concession applies to recreational and sporting associations upon application to Council each year.
A rating concession of 100% applies to all 22 privately leased and licensed agreements in existence at Whiteman Park.The City does not provide services to Whiteman Park and the ‘commercial’ operations are small scale in nature and related to the tourist trade - which enhances the attraction of the park. The Valuer General has not provided valuations and the Water Corporation do not rate these properties.
Penalty interest is be levied on all overdue emergency services levy at the rate declared and gazetted by the Minister for Emergency Services.
Interest charges do not apply to current rates due by registered Pensioners or Seniors.In accordance with section 6.45 of the Local Government Act 1995 and regulation 68 of the Local
Arrears In accordance with sections 6.13 and 6.51 of the Local Government Act 1995 and Regulations 19A and 70 of the Local Government (Financial Management) Regulations 1996, a 5% penalty interest charge was levied on a daily basis on all Rates and Specified Area Rates unpaid after the due date (Penalty interest does not apply to current rates due by registered Pensioners or Seniors).
In addition penalty interest was levied on all overdue emergency services levy at the rate declared and gazetted by the Minister for Emergency Services.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
Pensioners and Seniors
Date Unpaid RatesInstalment Options Due Admin Charge Interest Rate Interest
Option One $ % %Prompt payment for prize draw 31 Aug 2018 - 0.00% 0.00%Option Two (four instalments)1st payment 31 Aug 2018 - 0.00% 0.00%2nd payment 02 Nov 2018 - 5.00% 5.00%3rd payment 18 Jan 2019 - 5.00% 5.00%4th payment 22 Mar 2019 - 5.00% 5.00%
Actual Budget Actual2018/19 2018/19 2017/18
$ $ $Interest on unpaid rates 5.00% 795,980 650,000 587,895Interest on instalment plan 5.00% 654,245 600,000 597,301
1,450,224 1,250,000 1,185,196ESL interest 222,112 120,000 204,921
1,672,336 1,370,000 1,390,117
Instalment Plan
Pensioners who hold an eligible Pensioner Concession Card may be entitled to receive Pensioner Rates Concession and are exempt from interest charges. Seniors who hold a Senior Card and/or a Commonwealth Senior’s Health Card may also be entitled to Rates Concession as per Rates and Charges (Rebates and Deferred) Act 1992 (as amended in 2001).
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
25. RATE SETTING STATEMENT INFORMATION
2018/19 2018/192018/19 Budget 2018/19 Budget
30 June 2019 30 June 2019 1 July 2018 1 July 2018Carried Forward Carried Forward Brought Forward Brought Forward
$ $ $
Current AssetsCash and Cash Equivalents 22,970,288 21,781,230 26,431,365 20,318,862 Financial Assets 167,871,205 100,000,000 130,900,000 110,000,000 Trade and Other Receivables 16,309,329 11,708,513 13,892,382 12,234,535 Assets Held for Sale 5,810,269 - 7,882,399 7,847,019 Inventories 522,572 275,445 570,506 269,138 Other Assets 1,228,469 1,386,933 1,194,669 1,382,545 Total: Current Assets 214,712,132 135,152,121 180,871,321 152,052,099
LESS Current LiabilitiesTrade and Other Payables 14,501,296 19,162,872 5,550,756 19,136,146 Short Term Borrowings 6,768,036 7,946,917 7,041,643 7,023,848 Provisions 15,116,273 13,984,458 14,659,661 13,954,458 Total: Current Liabilities 36,385,605 41,094,247 27,252,060 40,114,452
Net current assets 178,326,527 94,057,874 153,619,261 111,937,647
Add/(Less):Reserves - Restricted Cash (141,828,299) (108,307,479) (122,167,755) (104,773,906) Loans - Clubs/Institutions (71,205) (71,210) (98,664) (98,665) Assets Held for Sale (5,810,269) - (7,882,399) (7,847,019) Employee Entitlements 11,634,234 9,915,692 10,201,806 9,168,771 Short Term Borrowings 6,768,036 7,946,917 7,041,643 7,023,848 Bonds and Deposits (4,169,826) (3,491,282) (3,506,743) (3,599,253)
(133,477,329) (94,007,362) (116,412,112) (100,126,224)
Surplus/(Deficit) 44,849,198 50,512 37,207,149 11,811,423
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT
Risk Measurement
Market risk - interest rate Sensitivity analysis
Credit risk Aging analysisCredit analysis
Liquidity risk Rolling cash flow forecasts
(a) Interest Rate RiskCash and Cash Equivalents and Other Financial Assets
WeightedAverage Carrying Fixed Variable Non Interest
Interest Rate Amounts Interest Rate Interest Rate Bearing% $ $ $ $
2019
2.48% 190,770,288 167,800,000 22,970,288 -
2018
2.37% 157,331,365 130,900,000 26,431,365 -
Sensitivity
Actual Actual2018/19 2017/18
Impact of a 1% movement in interest rates on profit and loss and equity* 2,106,916 1,777,716* Holding all other variables constant
Borrowings
Profit or loss is sensitive to higher/lower interest income from cash and cash equivalents as a result of changes in interest rates.
Borrowings are subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs. The City manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation. The City does not consider there to be any interest rate risk in relation to borrowings.
Cash and cash equivalents and Other Financial Assets
Cash and cash equivalents and Other Financial Assets
The City does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.
This note explains the City’s exposure to financial risks and how these risks could affect the City’s future financial performance.
Financial risk management is carried out by the finance area under policies approved by the Council. The finance area identifies, evaluates and manages financial risks in close co-operation with the operating divisions. Council have approved the overall risk management policy and provide policies on specific areas such as investment policy.
The City's main interest rate risk arises from cash and cash equivalents with variable interest rates, which exposes the City to cash flow interest rate risk. Short term overdraft facilities also have variable interest rates however these are repaid within 12 months, reducing the risk level to minimal.
Excess cash and cash equivalents are invested in fixed interest rate term deposits which do not expose the City to cash flow interest rate risk. Cash and cash equivalents required for working capital are held in variable interest rate accounts and non-interest bearing accounts. Carrying amounts of cash and cash equivalents at the 30 June and the weighted average interest rate across all cash and cash equivalents and term deposits held disclosed as financial assets at amortised cost are reflected in the table below.
Borrowings and other liabilities Availability of committed credit lines and borrowing facilities
ManagementLong term borrowings at variable rates
Exposure arising from
Cash and cash equivalents, trade receivables, financial assets and
Diversification of bank deposits, credit limits. Investment policy
Utilise fixed interest rate borrowings
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
25. RATE SETTING STATEMENT INFORMATION
2018/19 2018/192018/19 Budget 2018/19 Budget
30 June 2019 30 June 2019 1 July 2018 1 July 2018Carried Forward Carried Forward Brought Forward Brought Forward
$ $ $
Current AssetsCash and Cash Equivalents 22,970,288 21,781,230 26,431,365 20,318,862 Financial Assets 167,871,205 100,000,000 130,900,000 110,000,000 Trade and Other Receivables 16,309,329 11,708,513 13,892,382 12,234,535 Assets Held for Sale 5,810,269 - 7,882,399 7,847,019 Inventories 522,572 275,445 570,506 269,138 Other Assets 1,228,469 1,386,933 1,194,669 1,382,545 Total: Current Assets 214,712,132 135,152,121 180,871,321 152,052,099
LESS Current LiabilitiesTrade and Other Payables 14,501,296 19,162,872 5,550,756 19,136,146 Short Term Borrowings 6,768,036 7,946,917 7,041,643 7,023,848 Provisions 15,116,273 13,984,458 14,659,661 13,954,458 Total: Current Liabilities 36,385,605 41,094,247 27,252,060 40,114,452
Net current assets 178,326,527 94,057,874 153,619,261 111,937,647
Add/(Less):Reserves - Restricted Cash (141,828,299) (108,307,479) (122,167,755) (104,773,906) Loans - Clubs/Institutions (71,205) (71,210) (98,664) (98,665) Assets Held for Sale (5,810,269) - (7,882,399) (7,847,019) Employee Entitlements 11,634,234 9,915,692 10,201,806 9,168,771 Short Term Borrowings 6,768,036 7,946,917 7,041,643 7,023,848 Bonds and Deposits (4,169,826) (3,491,282) (3,506,743) (3,599,253)
(133,477,329) (94,007,362) (116,412,112) (100,126,224)
Surplus/(Deficit) 44,849,198 50,512 37,207,149 11,811,423
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT
Risk Measurement
Market risk - interest rate Sensitivity analysis
Credit risk Aging analysisCredit analysis
Liquidity risk Rolling cash flow forecasts
(a) Interest Rate RiskCash and Cash Equivalents and Other Financial Assets
WeightedAverage Carrying Fixed Variable Non Interest
Interest Rate Amounts Interest Rate Interest Rate Bearing% $ $ $ $
2019
2.48% 190,770,288 167,800,000 22,970,288 -
2018
2.37% 157,331,365 130,900,000 26,431,365 -
Sensitivity
Actual Actual2018/19 2017/18
Impact of a 1% movement in interest rates on profit and loss and equity* 2,106,916 1,777,716* Holding all other variables constant
Borrowings
Profit or loss is sensitive to higher/lower interest income from cash and cash equivalents as a result of changes in interest rates.
Borrowings are subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs. The City manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation. The City does not consider there to be any interest rate risk in relation to borrowings.
Cash and cash equivalents and Other Financial Assets
Cash and cash equivalents and Other Financial Assets
The City does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.
This note explains the City’s exposure to financial risks and how these risks could affect the City’s future financial performance.
Financial risk management is carried out by the finance area under policies approved by the Council. The finance area identifies, evaluates and manages financial risks in close co-operation with the operating divisions. Council have approved the overall risk management policy and provide policies on specific areas such as investment policy.
The City's main interest rate risk arises from cash and cash equivalents with variable interest rates, which exposes the City to cash flow interest rate risk. Short term overdraft facilities also have variable interest rates however these are repaid within 12 months, reducing the risk level to minimal.
Excess cash and cash equivalents are invested in fixed interest rate term deposits which do not expose the City to cash flow interest rate risk. Cash and cash equivalents required for working capital are held in variable interest rate accounts and non-interest bearing accounts. Carrying amounts of cash and cash equivalents at the 30 June and the weighted average interest rate across all cash and cash equivalents and term deposits held disclosed as financial assets at amortised cost are reflected in the table below.
Borrowings and other liabilities Availability of committed credit lines and borrowing facilities
ManagementLong term borrowings at variable rates
Exposure arising from
Cash and cash equivalents, trade receivables, financial assets and
Diversification of bank deposits, credit limits. Investment policy
Utilise fixed interest rate borrowings
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT (Continued)(b) Credit Risk
Trade Receivables
More than 1 More than 2 More than 330 June 2019 Current year past due years past due years past due TotalRates receivable
Expected credit loss 0.00% 0.00% 0.00% 0.00% 0.00%Gross carrying amount 8,734,620 1,879,269 - - 10,613,889Loss allowance - - - - -
01 July 2018Rates receivable
Expected credit loss 0.00% 0.00% 0.00% 0.00% 0.00%Gross carrying amount 8,364,218 925,082 - - 9,289,300Loss allowance - - - - -
More than 30 More than 60 More than 9030 June 2019 Current days past due days past due days past due TotalSundry Receivables
Expected credit loss 5.356% 0.000% 0.000% 83.323%Gross carrying amount 394,514 25,283 28,753 694,998 1,143,548 Loss allowance 21,132 - - 579,090 600,222
01 July 2018Sundry Receivables
Expected credit loss 5.356% 0.000% 0.000% 83.124%Gross carrying amount 228,300 179,404 20,983 707,956 1,136,642 Loss allowance 12,229 - - 588,483 600,712
Actual Actual2018/19 2017/18
Percentage of Rates and Annual charges- Current 26% 28%- Overdue 74% 72%
Percentage of Other Receivables- Current 6% 4%- Overdue 94% 96%
The loss allowance as at 30 June 2019 and 1 July 2018 (on adoption of AASB 9) was determined as follows for sundry receivables.
The City applies the AASB 9 simplified approach to measuring expected credit losses using a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, rates receivable are separated from other trade receivables due to the difference in payment terms and security for rates receivable.
The expected loss rates are based on the payment profiles of rates and fees and charges over a period of 36 months before 1 July 2018 or 1 July 2019 respectively and the corresponding historical losses experienced within this period. Historical credit loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors such as the ability of ratepayers and residents to settle the receivables. Housing prices and unemployment rates have been identified as the most relevant factor in repayment rates, and accordingly adjustments are made to the expected credit loss rate based on these factors. There are no material receivables that have been subject to a re-negotiation of repayment terms.
The loss allowance as at 30 June 2019 and 1 July 2018 (on adoption of AASB 9) was determined as follows for rates receivable. No expected credit loss was forecast on 1 July 2018 or 30 June 2019 for rates receivable as penalty interest applies to unpaid rates and properties associated with unpaid rates may be disposed of to recover unpaid rates.
The City’s major receivables comprise rates annual charges and user fees and charges. The major risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The City manages this risk by monitoring outstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date through incentives.
Credit risk on rates and annual charges is minimised by the ability of the City to recover these debts as a secured charge over the land, that is, the land can be sold to recover the debt. The City is also able to charge interest on overdue rates and annual charges at higher than market rates, which further encourages payment.
The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT (Continued)
(c) Liquidity Risk
Payables and Borrowings
The contractual undiscounted cash flows of the City’s payables and borrowings are set out in the liquidity table below. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.
Due Due Due Totalwithin between after contractual Carrying1 year 1 & 5 years 5 years cash flows values
2019 $ $ $ $ $
Payables 14,501,296 4,169,826 - 18,671,122 18,671,122 Borrowings 8,321,246 24,526,808 8,973,764 41,821,818 36,391,864
22,822,542 28,696,634 8,973,764 60,492,940 55,062,986
2018
Payables 4,995,681 3,156,069 - 8,151,750 8,151,750 Borrowings 8,874,151 28,010,817 13,820,014 50,704,982 43,433,507
13,869,832 31,166,886 13,820,014 58,856,732 51,585,257
27. TRUST FUNDS
1 July 2018Amounts Received
Interest Received Amounts Paid 30 June 2019
Town Planning Act (Section 154)Public Open Space 3,286,540 3,500,000 83,127 36,706 6,832,961
Building and Construction Industry Training Fund
BRB, BCITF & BSL 174,796 186,212 - 174,796 186,212
Other Trust itemsDeposit for Part of Lot 3, Quin Road, Bullsbrook from Watercorp 11,503 - 137 - 11,640 Deposit for Lot 4 Midland Oval 500,000 - - 500,000 -
Stage 2 New Junction Development Playground - 454,545 - - 454,545
3,972,839 4,140,757 83,264 711,502 7,485,358
Funds held at balance date which are required to be held in trust and which are not included in the financial statements are as follows:
Payables and Borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due. The City manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required and disclosed in Note 14.(f)
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT (Continued)(b) Credit Risk
Trade Receivables
More than 1 More than 2 More than 330 June 2019 Current year past due years past due years past due TotalRates receivable
Expected credit loss 0.00% 0.00% 0.00% 0.00% 0.00%Gross carrying amount 8,734,620 1,879,269 - - 10,613,889Loss allowance - - - - -
01 July 2018Rates receivable
Expected credit loss 0.00% 0.00% 0.00% 0.00% 0.00%Gross carrying amount 8,364,218 925,082 - - 9,289,300Loss allowance - - - - -
More than 30 More than 60 More than 9030 June 2019 Current days past due days past due days past due TotalSundry Receivables
Expected credit loss 5.356% 0.000% 0.000% 83.323%Gross carrying amount 394,514 25,283 28,753 694,998 1,143,548 Loss allowance 21,132 - - 579,090 600,222
01 July 2018Sundry Receivables
Expected credit loss 5.356% 0.000% 0.000% 83.124%Gross carrying amount 228,300 179,404 20,983 707,956 1,136,642 Loss allowance 12,229 - - 588,483 600,712
Actual Actual2018/19 2017/18
Percentage of Rates and Annual charges- Current 26% 28%- Overdue 74% 72%
Percentage of Other Receivables- Current 6% 4%- Overdue 94% 96%
The loss allowance as at 30 June 2019 and 1 July 2018 (on adoption of AASB 9) was determined as follows for sundry receivables.
The City applies the AASB 9 simplified approach to measuring expected credit losses using a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, rates receivable are separated from other trade receivables due to the difference in payment terms and security for rates receivable.
The expected loss rates are based on the payment profiles of rates and fees and charges over a period of 36 months before 1 July 2018 or 1 July 2019 respectively and the corresponding historical losses experienced within this period. Historical credit loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors such as the ability of ratepayers and residents to settle the receivables. Housing prices and unemployment rates have been identified as the most relevant factor in repayment rates, and accordingly adjustments are made to the expected credit loss rate based on these factors. There are no material receivables that have been subject to a re-negotiation of repayment terms.
The loss allowance as at 30 June 2019 and 1 July 2018 (on adoption of AASB 9) was determined as follows for rates receivable. No expected credit loss was forecast on 1 July 2018 or 30 June 2019 for rates receivable as penalty interest applies to unpaid rates and properties associated with unpaid rates may be disposed of to recover unpaid rates.
The City’s major receivables comprise rates annual charges and user fees and charges. The major risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The City manages this risk by monitoring outstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date through incentives.
Credit risk on rates and annual charges is minimised by the ability of the City to recover these debts as a secured charge over the land, that is, the land can be sold to recover the debt. The City is also able to charge interest on overdue rates and annual charges at higher than market rates, which further encourages payment.
The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
26. FINANCIAL RISK MANAGEMENT (Continued)
(c) Liquidity Risk
Payables and Borrowings
The contractual undiscounted cash flows of the City’s payables and borrowings are set out in the liquidity table below. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.
Due Due Due Totalwithin between after contractual Carrying1 year 1 & 5 years 5 years cash flows values
2019 $ $ $ $ $
Payables 14,501,296 4,169,826 - 18,671,122 18,671,122 Borrowings 8,321,246 24,526,808 8,973,764 41,821,818 36,391,864
22,822,542 28,696,634 8,973,764 60,492,940 55,062,986
2018
Payables 4,995,681 3,156,069 - 8,151,750 8,151,750 Borrowings 8,874,151 28,010,817 13,820,014 50,704,982 43,433,507
13,869,832 31,166,886 13,820,014 58,856,732 51,585,257
27. TRUST FUNDS
1 July 2018Amounts Received
Interest Received Amounts Paid 30 June 2019
Town Planning Act (Section 154)Public Open Space 3,286,540 3,500,000 83,127 36,706 6,832,961
Building and Construction Industry Training Fund
BRB, BCITF & BSL 174,796 186,212 - 174,796 186,212
Other Trust itemsDeposit for Part of Lot 3, Quin Road, Bullsbrook from Watercorp 11,503 - 137 - 11,640 Deposit for Lot 4 Midland Oval 500,000 - - 500,000 -
Stage 2 New Junction Development Playground - 454,545 - - 454,545
3,972,839 4,140,757 83,264 711,502 7,485,358
Funds held at balance date which are required to be held in trust and which are not included in the financial statements are as follows:
Payables and Borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due. The City manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required and disclosed in Note 14.(f)
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
28. INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING STANDARDS
AASB 9 Financial instruments
(a)
(b) Impairment
29. NEW ACCOUNTING STANDARDS and INTERPRETATIONS FOR APPLICATION IN FUTURE YEARS
(a) AASB 15 Revenue from Contracts with Customers
(b) AASB 16 Leases
The City will adopt AASB 15 Revenue from Contracts with Customers (issued December 2014) on 1 July 2019 resulting in changes in accounting policies. In accordance with the transition provisions AASB 15, the City adopted the new rules retrospectively with the cumulative effect of initially applying these rules recognised on 1 July 2019.
The City will apply this Standard to its leases retrospectively from 1 July 2019, as per AASB 16 transition provisions, with the cumulative effect of initially applying AASB16 to be recognised on 1 July 2019. The City will not restate comparatives for prior reporting periods. On adoption of AASB 16, the City will recognise lease liabilities in relation to leases which had previously been classified as an 'operating lease' applying AASB 117. These lease liabilities will be measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate on 1 July 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 July 2019 will be 3.50%.
On adoption of AASB 16, the City will recognise a right-of-use asset in relation to a lease which had previously been classified as an 'operating lease' applying AASB 117. This right-of-use asset is to be measured as if AASB 16 had been applied since its commencement date by the carrying amount but discounted using the lessee's incremental borrowing rate as on 1 July 2019. Property, plant and equipment increases by $20,000 on 1 July 2019 and the net impact on retained earnings on 1 July 2019 will be $20,000.
Differences from adoption of AASB 9 have been recognised directly in accumulated surplus/(deficit).
Classification and measurement requirements of AASB 9 did not have a significant impact on the City.
Changes in the City's classification of financial assets are as follows:
- Fair Value through Other Comprehensive Income (FVOCI); or- Fair Value through Profit or Loss (FVPL)
- Amortised Cost;Subsequent to initial recognition, financial assets are measured at:
Key Changes in AASB 9:
Classification and Measurement
The initial application of AASB 9 Financial Instruments (formerly AASB 139 Financial Instruments):
During the current year, the City adopted all of the new and revised Australian Accounting Standards and Interpretations which were both mandatory and applicable to its operations.
Recognition and Measurement) has implications for the City's current year reporting and disclosure purposes, though these are immaterial.
AASB 9 has changed the classification and measurement of financial assets and adopts an "expected loss model" for impairment assessment from 1 January 2018.The City applied AASB 9 prospectively, with an initial application date of 1 July 2018. Comparative information which continues to be reported under AASB 139 has not been restated, as per AASB 9.7.2.15.
These standards are applicable to future reporting periods and have not yet been adopted:
- Trade receivables and Loans and advances (Other debtors) classified as "Loans and receivables" as at 30 June 2018 are classified and measured as Financial assets at amortised cost beginning 1 July 2018.
- The City did not designate any financial assets at FVPL.
AASB 9 impairment requirements are based on the ‘expected credit losses’ (ECL) model. This replaces the ‘incurred losses’ approach under AASB 139, whereby expected losses are recognised through the life of the asset and not only after a loss event has been identified.
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the City.
This note explains management's assessment of the impact of the adoption of AASB 15 Revenue from Contracts with Customers, AASB 16 Leases and AASB 1058 Income for Not-for-Profit Entities.
Upon adoption of AASB 9, the City did not make any adjustments to the retained Surplus as at 1 July 2018, as the adjustments were considered immaterial. Therefore the necessary adjustments were reflected in the Profit and Loss for the year.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
29. NEW ACCOUNTING STANDARDS (Continued)
(c) AASB 1058 Income For Not-For-Profit Entities
For leases which had previously been classified as an 'operating lease' when applying AASB 117, the City is not required to make any adjustments on transition for leases for which the underlying asset is of low value. Assets for which the fair value as at the date of acquisition is under $5,000 are not recognised as an asset in accordance with Financial Management Regulation 17A (5).
In applying AASB 16 for the first time, the City will use the following practical expedient permitted by the standard. - The exclusion of initial direct costs from the measurement of the right-of-use asset at the date of initial application.
The City will adopt AASB 1058 Income for Not-for-Profit Entities (issued December 2016) on 1 July 2019 which will result in changes In accordance with the transition provisions AASB 1058, the City will adopt the new rules retrospectively with the cumulative effect of initially applying AASB 1058 recognised at 1 July 2019. Comparative information for prior reporting periods shall not be restated, in accordance with AASB 1058 transition requirements.In applying AASB 1058 retrospectively with the cumulative effect of initially applying the Standard on 1 July 2019 changes will occur to the following financial statement line items by application of AASB 1058 as compared to AASB 1004 Contributions before the change:
Prepaid rates are, until the taxable event for the rates has occurred, refundable at the request of the ratepayer. Therefore the rates received in advance give rise to a financial liability that is within the scope of AASB 9. On 1 July 2019 the prepaid rates will be recognised as a financial asset and a related amount recognised as a financial liability and no income recognised by the City. When the taxable event occurs the financial liability will be extinguished and the City will recognise income for the prepaid rates that have not been refunded.
Assets that were acquired for consideration, that were significantly less than fair value principally to enable the City to further its objectives, may have been measured on initial recognition under other Australian Accounting Standards at a cost that was significantly less than fair value. Such assets are not required to be remeasured at fair value.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
28. INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING STANDARDS
AASB 9 Financial instruments
(a)
(b) Impairment
29. NEW ACCOUNTING STANDARDS and INTERPRETATIONS FOR APPLICATION IN FUTURE YEARS
(a) AASB 15 Revenue from Contracts with Customers
(b) AASB 16 Leases
The City will adopt AASB 15 Revenue from Contracts with Customers (issued December 2014) on 1 July 2019 resulting in changes in accounting policies. In accordance with the transition provisions AASB 15, the City adopted the new rules retrospectively with the cumulative effect of initially applying these rules recognised on 1 July 2019.
The City will apply this Standard to its leases retrospectively from 1 July 2019, as per AASB 16 transition provisions, with the cumulative effect of initially applying AASB16 to be recognised on 1 July 2019. The City will not restate comparatives for prior reporting periods. On adoption of AASB 16, the City will recognise lease liabilities in relation to leases which had previously been classified as an 'operating lease' applying AASB 117. These lease liabilities will be measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate on 1 July 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 July 2019 will be 3.50%.
On adoption of AASB 16, the City will recognise a right-of-use asset in relation to a lease which had previously been classified as an 'operating lease' applying AASB 117. This right-of-use asset is to be measured as if AASB 16 had been applied since its commencement date by the carrying amount but discounted using the lessee's incremental borrowing rate as on 1 July 2019. Property, plant and equipment increases by $20,000 on 1 July 2019 and the net impact on retained earnings on 1 July 2019 will be $20,000.
Differences from adoption of AASB 9 have been recognised directly in accumulated surplus/(deficit).
Classification and measurement requirements of AASB 9 did not have a significant impact on the City.
Changes in the City's classification of financial assets are as follows:
- Fair Value through Other Comprehensive Income (FVOCI); or- Fair Value through Profit or Loss (FVPL)
- Amortised Cost;Subsequent to initial recognition, financial assets are measured at:
Key Changes in AASB 9:
Classification and Measurement
The initial application of AASB 9 Financial Instruments (formerly AASB 139 Financial Instruments):
During the current year, the City adopted all of the new and revised Australian Accounting Standards and Interpretations which were both mandatory and applicable to its operations.
Recognition and Measurement) has implications for the City's current year reporting and disclosure purposes, though these are immaterial.
AASB 9 has changed the classification and measurement of financial assets and adopts an "expected loss model" for impairment assessment from 1 January 2018.The City applied AASB 9 prospectively, with an initial application date of 1 July 2018. Comparative information which continues to be reported under AASB 139 has not been restated, as per AASB 9.7.2.15.
These standards are applicable to future reporting periods and have not yet been adopted:
- Trade receivables and Loans and advances (Other debtors) classified as "Loans and receivables" as at 30 June 2018 are classified and measured as Financial assets at amortised cost beginning 1 July 2018.
- The City did not designate any financial assets at FVPL.
AASB 9 impairment requirements are based on the ‘expected credit losses’ (ECL) model. This replaces the ‘incurred losses’ approach under AASB 139, whereby expected losses are recognised through the life of the asset and not only after a loss event has been identified.
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the City.
This note explains management's assessment of the impact of the adoption of AASB 15 Revenue from Contracts with Customers, AASB 16 Leases and AASB 1058 Income for Not-for-Profit Entities.
Upon adoption of AASB 9, the City did not make any adjustments to the retained Surplus as at 1 July 2018, as the adjustments were considered immaterial. Therefore the necessary adjustments were reflected in the Profit and Loss for the year.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
29. NEW ACCOUNTING STANDARDS (Continued)
(c) AASB 1058 Income For Not-For-Profit Entities
For leases which had previously been classified as an 'operating lease' when applying AASB 117, the City is not required to make any adjustments on transition for leases for which the underlying asset is of low value. Assets for which the fair value as at the date of acquisition is under $5,000 are not recognised as an asset in accordance with Financial Management Regulation 17A (5).
In applying AASB 16 for the first time, the City will use the following practical expedient permitted by the standard. - The exclusion of initial direct costs from the measurement of the right-of-use asset at the date of initial application.
The City will adopt AASB 1058 Income for Not-for-Profit Entities (issued December 2016) on 1 July 2019 which will result in changes In accordance with the transition provisions AASB 1058, the City will adopt the new rules retrospectively with the cumulative effect of initially applying AASB 1058 recognised at 1 July 2019. Comparative information for prior reporting periods shall not be restated, in accordance with AASB 1058 transition requirements.In applying AASB 1058 retrospectively with the cumulative effect of initially applying the Standard on 1 July 2019 changes will occur to the following financial statement line items by application of AASB 1058 as compared to AASB 1004 Contributions before the change:
Prepaid rates are, until the taxable event for the rates has occurred, refundable at the request of the ratepayer. Therefore the rates received in advance give rise to a financial liability that is within the scope of AASB 9. On 1 July 2019 the prepaid rates will be recognised as a financial asset and a related amount recognised as a financial liability and no income recognised by the City. When the taxable event occurs the financial liability will be extinguished and the City will recognise income for the prepaid rates that have not been refunded.
Assets that were acquired for consideration, that were significantly less than fair value principally to enable the City to further its objectives, may have been measured on initial recognition under other Australian Accounting Standards at a cost that was significantly less than fair value. Such assets are not required to be remeasured at fair value.
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
30. FINANCIAL RATIOS
2019 2018 2017 2016Current ratio 2.78 3.23 1.74 1.34Asset consumption ratio 0.72 0.73 0.60 0.61Asset renewal funding ratio 0.96 1.06 1.13 0.97Asset sustainability ratio 0.71 0.40 1.32 1.20Debt service cover ratio 8.12 9.07 9.93 8.93Operating surplus ratio 0.16 0.22 0.26 0.23Own source revenue coverage ratio 1.08 1.16 1.16 1.15
The above ratios are calculated as follows:
Current ratio current assets minus restricted assetscurrent liabilities minus liabilities associated
with restricted assets
Asset consumption ratio
Asset renewal funding ratio
Asset sustainability ratiodepreciation
Debt service cover ratio annual operating surplus before interest and depreciationprincipal and interest
Operating surplus ratio operating revenue minus operating expensesown source operating revenue
Own source revenue coverage ratio own source operating revenueoperating expense
depreciated replacement costs of depreciable assetscurrent replacement cost of depreciable assets
NPV of planned capital renewal over 10 yearsNPV of required capital expenditure over 10 years
capital renewal and replacement expenditure
NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
30. FINANCIAL RATIOS
2019 2018 2017 2016Current ratio 2.78 3.23 1.74 1.34Asset consumption ratio 0.72 0.73 0.60 0.61Asset renewal funding ratio 0.96 1.06 1.13 0.97Asset sustainability ratio 0.71 0.40 1.32 1.20Debt service cover ratio 8.12 9.07 9.93 8.93Operating surplus ratio 0.16 0.22 0.26 0.23Own source revenue coverage ratio 1.08 1.16 1.16 1.15
The above ratios are calculated as follows:
Current ratio current assets minus restricted assetscurrent liabilities minus liabilities associated
with restricted assets
Asset consumption ratio
Asset renewal funding ratio
Asset sustainability ratiodepreciation
Debt service cover ratio annual operating surplus before interest and depreciationprincipal and interest
Operating surplus ratio operating revenue minus operating expensesown source operating revenue
Own source revenue coverage ratio own source operating revenueoperating expense
depreciated replacement costs of depreciable assetscurrent replacement cost of depreciable assets
NPV of planned capital renewal over 10 yearsNPV of required capital expenditure over 10 years
capital renewal and replacement expenditure
City of Swan 2 Midland Square Midland
PO Box 196 Midland WA 6936 9267 9267
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