New Attachment Booklet March 2019 · 2020. 4. 23. · 04/02/2019 all conditions cleaning vacate...

Shire of Irwin ATTACHMENTS – ORDINARY COUNCIL MEETING 26 MARCH 2019

Attachment Booklet – March 2019


ATTACHMENT: CC01

Accounts for Payment – February 2019

EFTLCHQ# EFT23893 EFT23894 EFT23895

EFT23896

EFT23897

EFT23898

EFT23899 EFT23900

EFT23901 EFT23902

EFT23903

EFT23904 EFT23905 EFT23906 EFT23907

EFT23908

EFT23909

EFT23910

EFT23911 EFT23912 EFT23913 EFT23914

EFT23915

(EFT23916)

(EFT23917)

(EFT23918)

(EFT23919) EFT23920 EFT23921

EFT23922 EFT23923

EFT23924

EFT23925

EFT23926'

EFT23927 EFT23928 EFT23929 EFT23930

EFT23931 EFT23932

EFT23933 EFT23934

EFT23935

EFT23936

EFT23937

EFT23938

EFT23939 EFT23940

EFT23941

EFT23942 EFT23943 EFT23944 EFT23945

EFT23946

EFT23947 EFT23948

EFT23949 EFT23950 EFT23951

EFT23952 EFT23953 EFT23954

EFT23955 EFT23956

EFT23957 EFT23958

Shire of Irwin

List of Accounts paid February ZO 19 for presentation to the

Council Meeting Z6 March 2019

MUNICIPAL/(TRUST) PAYMENTS

DATE DESCRIPTION 04/02/2019 ALL CONDITIONS CLEANING VACATE CLEANING FOR UNIT 7 04/02/2019 CONSTRUCTION TRAINING FUND CONSTRUCTION TRAINING FUND RECONCILIATION JANUARY 19 04/02/2019 DEPT COMMERCE BUILDING COMMISSION BUILDING SERVICES LEVY RECONCILIATION JANUARY 19 04/02/2019 BURANDO HILL FAST Fill TRAILER AND CORRUGATED WATER TANK FOR IRWIN BUSH FIRE

BRIGADE 04/02/2019 CANINE CONTROL CONTRACT RANGER SERVICES

04/02/2019 CLYDE & CO (LAWYERS) PROFESSIONAL LEGAL FEES 04/02/2019 DONGARA HANDYMAN SERVICE BUILDING MAINTENANCE WORKS AT UNIT 19 THE VILLAGE 04/02/2019 DONGARA BODY BUILDERS MODIFICATIONS TO TOOL BOX & CRANE ON TRUCK

04/02/2019 DONGARA MIDWEST CRANE SERVICES LOAD SWEEPER ONTO TRUCK 04/02/2019 GHD PTY LTD POINT LEANDER DRIVE DESIGN

04/02/2019 HILLE, THOMPSON & DELFOS SET OUT INTERNAL BOUNDARIES FOR UNITS ON HENRY ROAD

04/02/2019 HOCKEY'S PEST SERVICE SPRAY CARPET IN LIBRARY 04/02/2019 INCITE SECURITY PROGRAMMING AND ADJUSTMENT TO SECURITY SYSTEM 04/02/2019 INFINITUM TECHNOLOGIES STATIONERY FOR INCIDENT CONTROL AT BUSH FIRES

04/02/2019 IVEY CONTRACTING WATER TRUCK HIRE FOR YARDARINO FIRE 04/02/2019 MIDWEST BOUNCE AND FUN HIRE OF JUMPING CASTLES FOR AUSTRALIA DAY EVENT 04/02/2019 MIDWEST MOWERS & SMALL ENGINES PARTS FOR SUNDRY PLANT 04/02/2019 MIDWEST FINANCIAL PROFESSIONAL FINANCIAL SERVICES

04/02/2019 PIXIES SCREEN PRINTS PROTECTIVE CLOTHING

04/02/2019 TYREPOWER LIMITED SUPPLY & FIT TYRES TO TOWN HIND, CESM VEHICLE AND FUSO TIP TRUCK

04/02/2019 WA TREASURY CORPORATION LOAN N093

04/02/2019 ELIZABETH MARY WHITE TRAVEL SUBSIDY ASSISTANCE FOR RESIDENT ELITE ATHLETES

04/02/2019 WOODLANDS DISTRIBUTORS & AGENCIES DOG WASTE BAGS 04/02/2019 CASSIE-ANNE JILL ALLINSON BOND REFUND

04/02/2019 DONGARA JUNIOR FOOTBALL CLUB BOND REFUND 04/02/2019 GERALDTON BUILDING SERVICES & CABINETS BOND REFUND 04/02/2019 DONGARA DENISON LIONS CLUB BOND REFUND

05/02/2019 AUSTRALIAN SERVICES UNION PAYROLL DEDUCTIONS

05/02/2019 SHIRE OF IRWIN - LOTTO FUND PAYROLL DEDUCTIONS

12/02/2019 AUSTRALIA POST POSTAGE & FREIGHT CHARGES JANUARY 19

12/02/2019 TARTS & CO TABLE DECORATIONS AND BLOOMS FOR AUSTRALIA DAY EVENT 12/02/2019 BRAD'S REFRIGERATION AND ELECTRICAL REPLACE AIR CON IN UNIT 13 AND 27 AND INSTALLATION OF AIR CONDITIONER

IN UNIT 18 THE VILLAGE 12/02/2019 DONGARA HANDYMAN SERVICE BUILDING MAINTENANCE WORKS AT THE VILLAGE 12/02/2019 DONGARA PAINTING SERVICE PAINT CHEMICAL ROOM AT DEPOT 12/02/2019 DIRECT TRAFFIC MANAGEMENT TRAFFIC MANAGEMENT FOR TREE PRUNING WORKS 12/02/2019 GLASS CO WA PTY LTD SUPPLY AND INSTALL AWNING WITH HOOD IN UNIT 14 THE VILLAGE 12/02/2019 INFINITUM TECHNOLOGIES CONSUMABLES JANUARY 19

12/02/2019 JOLLY LOBSTER HIRE OF JUMPING CASTLES FOR AUSTRALIA DAY EVENT

13/02/2019 CANCELLED

12/02/2019 STARFISH CAFE SOUTH BEACH CLEANING SOUTH BEACH ABLUTIONS JANUARY 19

12/02/2019 SYNERGY ELECTRICITY CHARGES 19/02/2019 AUSTRALIAN SERVICES UNION PAYROLL DEDUCTIONS

19/02/2019 SHIRE OF IRWIN - LOTTO FUND PAYROLL DEDUCTIONS 20/02/2019 JOHN ANTON KORIC RATES REFUND

21/02/2019 AMC PLUMBING AND GAS PLUMBING REPAIRS AT THE VILLAGE AND INSTALL CHEMICAL SHOWER AT

DEPOT

21/02/2019 AMPAC DEBT RECOVERY (WA) PTY LTD LEGAL COSTS - OUTSTANDING RATES

21/02/2019 ASSETIC ONSITE TRAINING AND SUPPORT

21/02/2019 AUSTRALIAN COMMUNICATIONS & MEDIA LICENCE RENEWAL- MT HORNER WEST TRANSMISSION TOWER AUTHORITY

21/02/2019 AUS RECORD BUILDING LICENCE FILES 21/02/2019 DONGARA BAKERY CONSUMABLES FOR AUSTRALIA DAY EVENT

21/02/2019 BATAVIA COAST TRIMMERS REPAIR SHADE SAIL ON FORESHORE AT SHELTER SHEDS

21/02/2019 BLACKWOODS PROTECTIVE EQUIPMENT

21/02/2019 BOC AUSTRALIA OXYGEN CYLINDER RENTAL

21/02/2019 BP ROADHOUSE MEALS FOR YARDARINO FIRE

21/02/2019 DEPT COMMERCE BUILDING COMMISSION AMENDMENT TO BUILDING SERVICES LEVY RECONCILIATION JANUARY 19 21/02/2019 CANINE CONTROL CONTRACT RANGER SERVICES

21/02/2019 IRWIN RURAL SUPPLIES & STOCKFEEDS LAYER CRUMBLES FOR CHICKENS- MOSQUITO CONTROL 21/02/2019 COURIER AUSTRALIA FREIGHT CHARGES

21/02/2019 DELRON CLEANING GERALDTON CLEANING CONTRACT JANUARY 2019 INCLUDING EXTRA CLEANING AT

COASTAL NODES AND CLEANING OF PORTABLE TOILETS AT GRANNIES BEACH

21/02/2019 DENISON BOWLING & RECREATION CLUB INC CO FUNDING COMMUNITY SPORT INFRASTRUCTURE GRANT

21/02/2019 DONGARA HANDYMAN SERVICE INSTALL SECURITY CAMERAS AT VISITOR CENTRE

21/02/2019 DONGARA BODY BUILDERS FIT BRAKE CONTROL UNIT TO FUSO TIP TRUCK 21/02/2019 DONGARA BUILDING & TRADE SUPPLIES PARKS, GARDENS, BUILDING AND ROAD MAINTENANCE SUPPLIES

21/02/2019 DONGARA DRILLING AND ELECTRICAL REPAIRS TO GENERATOR AT ADMIN OFFICE

21/02/2019 DONGARA HARDWARE WATER FOR VISITOR CENTRE AND ADMIN 21/02/2019 DONGARA DENISON SMASH REPAIRS EXCESS PAYMENT FOR PANEL REPAIRS TO COMMUNITY BUS

PAYMENTS -396.00

-1003.06

-1051.82

-9298.57

-5800.00

-1421.20

-580.00

-4779.50

-198.00 -5357.00 -1760.00

-165.00-477.95-222.00

-277.20

-910.00-214.40

-9900.00

-204.00

-2054.76

-20727.35

-400.00-261.80

-50.00

-575.00-9800.00

-560.00

-25.90

-80.00

-481.78-355.00

-5550.00

-270.67

-2970.00

-775.50

-1067.88

-212.50

-320.000.00

-756.33-11400.40

-25.90-75.00

-3132.46

-905.00

-660.00

-7590.00-111.00

-297.00

-60.00-1412.00

-129.88 -77.91 -44.30

-113.30-2000.00

-108.00 -220.45

-11466.27

-11000.00

-165.00

-689.70 -1724.55 -110.00 -225.00 -300.00

Shire of Irwin

Corporate Credit Card Expenditure - Payment Reference CR 040219

S.lvers Credit card Expenses

Spotify

CPP Convention Centre Perth

Go Daddy.Com

JBHiFi

NAB

Rec Centre Gym Music

Parking - A/CEO

Domain Renewal for Visitor Centre Website

lphone for Community Officer - Insurance Claim

Card Fee

TOTAL PAYMENT TO CORPORATE CREDIT CARD ACCOUNT

11.99

18.17

38.50

383.99

9.00

461.65

461.65


ATTACHMENT: CC02

Financials for Period Ended 28 February 2019

SHIRE OF IRWIN

MONTHLY FINANCIAL REPORT(Containing the Statement of Financial Activity)For the Period Ended 28 February 2019

LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

TABLE OF CONTENTS

Monthly Summary Information 2-3

Statement of Financial Activity by Program 4

Statement of Financial Activity By Nature or Type 5

Statement of Cashflows 6

Statement of Capital Acquisitions and Capital Funding 7

Note 1 Significant Accounting Policies 8-12

Note 2 Explanation of Material Variances 13-14

Note 3 Net Current Funding Position 14

Note 4 Cash and Investments 16

Note 5 Budget Amendments 17

Note 6 Receivables 18

Note 7 Cash Backed Reserves 19

Note 8 Capital Disposals 20

Note 9 Rating Information 21

Note 10 Information on Borrowings 22

Note 11 Grants and Contributions 23

Note 12 Trust 24

Note 13 Details of Capital Acquisitions 25-28

Key InformationReport Purpose

OverviewSummary reports and graphical progressive graphs are provided on pages 1 - 2.

Statement of Financial Activity by reporting programIs presented on page 6 and shows a surplus as at 28 February 2019 of $2,008,964.

Items of Significance

Financial Position Prior Year

28 Feb 2018 Current Year 28 Feb 2019

Adjusted Net Current Assets 80% 2,630,283$ 2,116,553$ Cash and Equivalent - Unrestricted 73% 2,123,527$ 1,557,170$ Cash and Equivalent - Restricted 125% 1,805,076$ 2,263,255$ Receivables - Rates 116% 675,361$ 783,884$ Receivables - Other 63% 153,151$ 95,997$

Payables 100% 166,314$ 166,758$

% Compares current ytd actuals to prior year actuals at the same time

Shire of IrwinInformation Summary

For the Period Ended 28 February 2019

Note: The Statements and accompanying notes are prepared based on all transactions recorded at the time ofpreparation and may vary due to transactions being processed for the reporting period after the date ofpreparation.

This report is prepared to comply with the requirements of Local Government (Financial Management) Regulations1996, Regulation 34 .

The material variance adopted by the Shire of Irwin for the 2018/19 year is $10,000 or 10% whichever is thegreater. The following selected items have been highlighted due to the amount of the variance to the budget or dueto the nature of the revenue/expenditure. A full listing and explanation of all items considered of material varianceis disclosed in Note 2.

2

2-3

13-14

16

17

18

19

20

21

22

23

24

25-28

This information is to be read in conjunction with the accompanying Financial Statements and Notes.

Shire of IrwinInformation Summary


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Amou

nt $

( '0

00s)

Month ending

Budget Operating Expenses -v- YTD Actual (Refer Note 2)

Budget 2018-19

Actual 2018-19

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000


Amou

nt $

( '0

00s)

Month ending

Budget Operating Revenues -v- Actual (Refer Note 2)

Budget 2018-19

Actual 2018-19

0

1,000

2,000

3,000

4,000

5,000

6,000


Amou

nt $

( '0

00s)

Month ending

Budget Capital Expenses -v- Actual (Refer Note 2)

Budget 2018-19

Actual 2018-19

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000


Amou

nt $

( '0

00s)

Month ending

Budget Capital Revenue -v- Actual (Refer Note 2)

Budget 2018-19

Actual 2018-19

Rates70%

Operating Grants, Subsidies and Contributions9%

Fees and Charges18%

Interest Earnings1%

Other Revenue2%

Profit on Disposal of Assets0%

Operating RevenueEmployee Costs34%

Materials and Contracts33%Utility Charges…

Depreciation on Non-Current Assets19%

Interest Expenses2%

Insurance Expenses3%

Other Expenditure3%

Loss on Disposal of Assets2%

Operating Expenditure

3

Var. $(b)-(a)

Var. % (b)-(a)/(a) Var.

Note $ $ $ $ %

Opening Funding Surplus(Deficit) 3 77,800 77,800 33,120 (44,680) (57%) q

Revenue from operating activitiesGovernance 0 0 217 217

General Purpose Funding 5,571,000 5,464,341 5,469,305 4,964 0%

Law, Order and Public Safety 281,300 214,016 361,981 147,965 69% p

Health 26,700 17,114 11,153 (5,961) 2-3

Education and Welfare 18,400 13,328 10,067 (3,261) (24%)

Housing 310,700 201,124 188,214 (12,910) (6%)

Community Amenities 845,400 794,728 763,804 (30,924) (4%)

Recreation and Culture 253,500 178,272 183,865 5,593 3%

Transport 121,300 103,714 119,644 15,930 15% p

Economic Services 244,900 200,272 205,138 4,866 2%

Other Property and Services 78,800 70,864 64,915 (5,949) (8%)

7,752,000 7,257,773 7,378,301 Expenditure from operating activitiesGovernance (496,800) (334,831) (364,479) (29,648) (9%)

General Purpose Funding (203,200) (103,511) (118,154) (14,643) (14%) p

Law, Order and Public Safety (730,100) (503,879) (498,937) 4,942 13-14

Health (156,400) (105,248) (90,836) 14,412 14% q

Education and Welfare (123,600) (81,944) (75,925) 6,019 7%

Housing (551,400) (370,744) (320,560) 50,184 14% q

Community Amenities (1,332,200) (875,864) (824,454) 51,410 1600% q

Recreation and Culture (3,253,500) (2,155,539) (2,166,033) (10,494) (0%)

Transport (4,226,200) (1,179,296) (1,378,909) (199,613) 1700%

Economic Services (494,300) (325,996) (364,569) (38,573) (12%) p

Other Property and Services 5,500 (17,013) (232,762) (215,749) 1800%

(11,562,200) (6,053,865) (6,435,619) Operating activities excluded from budget 1900%

Add back Depreciation 4,254,900 1,266,256 1,254,855 (11,401) (1%)

Adjust (Profit)/Loss on Asset Disposal 8 (17,300) (79,500) 98,417 177,917 2000% p

Adjust Provisions and Accruals (3,500) 0 36,655 36,655 p

Amount attributable to operating activities 423,900 2,390,664 2,332,609 2100%

Investing Activities 2200%

Non-operating Grants, Subsidies and Contributions 11 3,091,600 2,118,889 1,208,840 (910,049) (43%)

Proceeds from Disposal of Assets 8 517,000 288,000 239,364 (48,636) 2300%

Land and Buildings 13 (2,576,500) (1,745,128) (755,386) 989,742 57% q

Infrastructure Assets - Roads 13 (1,153,800) (769,200) (71,650) 697,550 2400% q

Infrastructure Assets - Other 13 (169,600) (80,136) (102,809) (22,673) (28%) p

Plant and Equipment 13 (1,327,200) (56,000) (886,666) (830,666) 25-28

Furniture and Equipment 13 (10,000) (8,350) 2-3 51,876 621% q

Amount attributable to investing activities (1,628,500) (251,925) (368,306)

Financing ActvitiesRepayment of Debentures 10 (200,900) (85,900) (85,912) (12) (0%)

Proceeds from New Debentures 913,700 0 0 0

Self-Supporting Loan Principal 7,700 3,800 3,823 23 1%

Transfer from Reserves 7 396,200 0 0 0

Transfer from Restricted 458,200 120,000 119,972 (28) 0%

Transfer to Reserves 7 (182,800) (23,000) (23,041) (41) (0%)

Transfer to Restricted (265,300) (3,300) (3,300) 0 0%

Amount attributable to financing activities 1,126,800 11,600 11,542

Closing Funding Surplus(Deficit) 3 0 2,228,139 2,008,964

Indicates a variance between Year to Date (YTD) Budget and YTD Actual data as per the adopted materiality threshold.Refer to Note 2 for an explanation of the reasons for the variance.

This statement is to be read in conjunction with the accompanying Financial Statements and notes.

SHIRE OF IRWINSTATEMENT OF FINANCIAL ACTIVITY

(Statutory Reporting Program)For the Period Ended 28 February 2019

YTD Budget

(a)

YTD Actual

(b) Annual Budget

4

Var. $(b)-(a)

Var. % (b)-(a)/(a) Var.

Note $ $ $ $ %

Opening Funding Surplus (Deficit) 3 77,800 77,800 33,120 (44,680) (57%) q

Revenue from operating activitiesRates 9 5,175,300 5,172,500 5,172,138 (362) (0%)

Operating Grants, Subsidies and Contributions 11 572,900 439,293 624,030 184,737 42% p

Fees and Charges 1,647,200 1,369,148 1,340,524 (28,624) 2-3

Interest Earnings 124,200 95,016 91,062 (3,954) (4%)

Other Revenue 150,400 99,816 141,778 41,962 42% p

Profit on Disposal of Assets 8 82,000 82,000 30,237 (51,763) (63%) q

7,752,000 7,257,773 7,399,770 Expenditure from operating activitiesEmployee Costs (3,207,600) (2,132,785) (2,226,698) (93,913) (4%)

Materials and Contracts (3,079,100) (2,008,204) (2,138,765) (130,561) (7%)

Utility Charges (400,800) (252,106) (239,813) 12,293 5%

Depreciation on Non-Current Assets (4,254,900) (1,266,256) (1,254,855) 11,401 1%

Interest Expenses (201,500) (104,700) (102,511) 2,189 2%

Insurance Expenses (178,400) (178,400) (178,461) (61) (0%)

Other Expenditure (175,200) (108,914) (187,330) (78,416) 13-14

Loss on Disposal of Assets 8 (64,700) (2,500) (128,654) (126,154) (5046%) p

(11,562,200) (6,053,865) (6,457,088)

Operating activities excluded from budget 1600%

Add back Depreciation 4,254,900 1,266,256 1,254,855 (11,401) (1%)

Adjust (Profit)/Loss on Asset Disposal 8 (17,300) (79,500) 98,417 177,917 1700% p

Movement in employee benefit provisions (non current) (3,500) 0 36,655 36,655 1800%

Amount attributable to operating activities 423,900 2,390,664 2,332,609 1900%

Investing activitiesGrants, Subsidies and Contributions 11 3,091,600 2,118,889 1,208,840 (910,049) 2000%

Proceeds from Disposal of Assets 8 517,000 288,000 239,364 (48,636) (17%) q

Land and Buildings 13 (2,576,500) (1,745,128) (755,386) 989,742 2100% q

Infrastructure Assets - Roads 13 (1,153,800) (769,200) (71,650) 697,550 91% q

Infrastructure Assets - Other 13 (169,600) (80,136) (102,809) (22,673) 2200%

Plant and Equipment 13 (1,327,200) (56,000) (886,666) (830,666) (1483%)

Furniture and Equipment 13 (10,000) (8,350) 2-3 51,876 2300% q

Amount attributable to investing activities (1,628,500) (251,925) (368,306)

2400%

Financing ActivitiesRepayment of Debentures 10 (200,900) (85,900) (85,912) (12) 25-28

Proceeds from New Debentures 913,700 0 0 0

Self-Supporting Loan Principal 7,700 3,800 3,823 23 1%

Transfer from Reserves 7 396,200 0 0 0

Transfer from Restricted 458,200 120,000 119,972 (28) 0%

Transfer to Reserves 7 (182,800) (23,000) (23,041) (41) (0%)

Transfer to Restricted (265,300) (3,300) (3,300) 0 0%

Amount attributable to financing activities 1,126,800 11,600 11,542

Closing Funding Surplus (Deficit) 3 0 2,228,139 2,008,963

Indicates a variance between Year to Date (YTD) Budget and YTD Actual data as per the adopted materiality threshold.

Refer to Note 2 for an explanation of the reasons for the variance.


SHIRE OF IRWINSTATEMENT OF FINANCIAL ACTIVITY

(By Nature or Type)For the Period Ended 28 February 2019

Annual Budget

YTD Budget

(a)

YTD Actual

(b)

5

Note $ $ $

Cash Flows from Operating ActivitiesReceiptsRates 9 4,894,023 5,318,300 4,707,739 Operating Grants, Subsidies and Contributions 11 1,630,668 572,900 624,030 Fees and Charges 813,045 1,967,200 1,474,252 Interest Earnings 142,847 124,200 91,062 Goods and Services Tax 480,908 515,000 346,114 Other Revenue 255,908 150,400 141,778

8,217,399 8,648,000 7,384,977 PaymentsEmployee Costs (3,394,690) (3,234,900) (2,276,560) Materials and Contracts (2,913,159) (2,998,600) (2,897,505) Utility Charges (482,132) (400,800) (239,813) Interest Expenses (181,209) (191,400) (113,282) Insurance Expenses (171,328) (178,400) (178,461) Goods and Services Tax (405,243) (500,000) (282,875) Other Expenditure (439,642) (175,200) (187,330)

(7,987,403) (7,679,300) (6,175,826)

Net Cash provided by (used in) operating activities 229,996 968,700 1,209,150

Cash Flows from Investing ActivitiesPayments for Purchase of Property, Plant & Equipment 13 (1,517,453) (3,973,700) (1,598,526) Payments for Construction of Infrastructure 13 (1,995,514) (1,263,400) (174,458) Grants/Contributions for the Development of Assets 11 1,546,021 3,091,600 1,208,840 Proceeds from Sale of Plant & Equipment 8 412,274 517,000 239,364 Net Cash provided by (used in) investment activities (1,554,672) (1,628,500) (324,780)

Cash Flows from Financing ActivitiesRepayment of Debentures 10 (130,436) (200,900) (85,912) Proceeds from New Debentures 40,000 913,700 0 Advances to community groups (40,000) 0 0 Self-Supporting Loan Principal 3,778 7,700 3,823 Net Cash provided by (used in) financing activities (126,658) 720,500 (82,090)

Net increase (decrease) in cash held (1,451,334) 60,700 802,280 Cash at beginning of year 4,361,890 2,910,600 2,910,556 Cash and cash equivalents at the end of the period 2,910,556 2,971,300 3,712,837


SHIRE OF IRWINSTATEMENT OF CASHFLOWS


Annual 30 June 2018

AnnualBudget

YTD Actual

Capital Acquisitions

NoteYTD Actual

New /Upgrade

YTD Actual (Renewal

Expenditure) YTD BudgetAnnual Budget

YTD Actual Total Variance

(a) (b) (d) (c) = (a)+(b) (d) - (c)$ $ $ $ $ $

Land and Buildings 13 (755,386) 0 (1,745,128) (2,576,500) (755,386) 989,742 Infrastructure Assets - Roads 13 (8,328) (63,322) (769,200) (1,153,800) (71,650) 697,550 Infrastructure Assets - Other 13 (67,336) (35,473) (80,136) (169,600) (102,809) (22,673) Plant and Equipment 13 (375,073) (511,593) (56,000) (1,327,200) (886,666) (830,666) Furniture and Equipment 13 0 (4,005) (8,350) (10,000) 2-3 51,876

Capital Expenditure Totals (1,206,123) (614,392) (2,658,814) (5,237,100) (1,816,510) 885,830

Capital acquisitions funded by:Capital Grants and Contributions 2,118,889 3,091,600 1,208,840 (910,049) Borrowings 0 913,700 0 0 Other (Disposals & C/Fwd) 288,000 517,000 239,364 (48,636) Council contribution - Cash Backed Reserves

Plant Replacement Reserve 131,200 131,200 0 (131,200) Council contribution - operations 120,725 583,600 368,306 247,581 Capital Funding Total 2,658,814 5,237,100 1,816,510 (842,304)

13-14

16

17

18

19

20

21

22

23

24

25-28

SHIRE OF IRWINSTATEMENT OF CAPITAL ACQUSITIONS AND CAPITAL FUNDING


Capital Grants and Contributions

59%Borrowings17%

Other (Disposals & C/Fwd)10%

Plant Replacement Reserve3%

Council contribution -operations

11%

Budgeted Capital Acquistions Funding

7

Note 1: Significant Accounting Policies(a) Basis of Accounting

Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over theassets comprising the contributions. Control over assets acquired from rates is obtained at the commencement of the rating periodor, where earlier, upon receipt of the rates.(e) Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverablefrom the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST receivable or payable. The net amountof GST recoverable from, or payable to, the ATO is included with receivables or payables in the statement of financial position. Cashflows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which arerecoverable from, or payable to, the ATO are presented as operating cash flows.

(f) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highlyliquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes invalue and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financialposition.

(g) Trade and Other Receivables

SHIRE OF IRWINNOTES TO THE STATEMENT OF FINANCIAL ACTIVITY


(b) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functions have been included in this statement. In the process ofreporting on the local government as a single unit, all transactions and balances between those funds (for example, loans and transfersbetween Funds) have been eliminated. All monies held in the Trust Fund are excluded from the statement, but a separate statement ofthose monies appears at Note 12.

(c) Rounding Off FiguresAll figures shown in this statement are rounded to the nearest dollar.(d) Rates, Grants, Donations and Other Contributions

This statement comprises a special purpose financial report which has been prepared in accordance with Australian AccountingStandards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoritativepronouncements 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 this statement are presented below and have beenconsistently applied unless stated otherwise. Except for cash flow and rate setting information, the report has also been prepared onthe 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.

Critical Accounting EstimatesThe preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements,estimates and assumptions that effect 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 bereasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets andliabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

(i) Fixed AssetsAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidentalto the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date ofacquisition. The cost of non-current assets constructed by the local government includes the cost of all materials used in theconstruction, direct labour on the project and an appropriate proportion of variable and fixed overhead. Certain asset classes may berevalued on a regular basis such that the carrying values are not materially different from fair value. Assets carried at fair value are tobe revalued with sufficient regularity to ensure the carrying amount does not differ materially from that determined using fair value atreporting date.

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due fromthird parties for goods sold and services performed in the ordinary course of business.

Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All otherreceivables are classified as non-current assets. Collectability of trade and other receivables is reviewed on an ongoing basis. Debtsthat are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objectiveevidence that they will not be collectible.

(h) InventoriesGeneralInventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in theordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

8

Note 1: Significant Accounting Policies



Asset YearsBuildings 50 years

Bus Shelters / Bird Hydes / Lookout Shelters 20 years

Playground Equipment 15 years

Seats & Benches 10 years

Jetties / Pontoons 30 years

Furniture and Equipment 7 years

Computer Equipment 3 years

Electrical Equipment 5 years

Heavy Road Plant 10 years

Trucks 5 years

Light Vehicles 2 years

Light Fire Control Vehicles 5 years

Sundry Plant & External Equipment 5 years

Tools 5 years

Footpaths (slab) / Boardwalks 20 years

Footpaths (concrete) 50 years

Water Supply Piping & Drainage Systems 75 years

Water Reticulation / Irrigation 20 years

Culverts 50 years

Kerbs & Channels 50 years

Bridges 75 years

Entry Statements 20 years

Carparks / Courts (sporting) 20 years

Crash Barriers / Walls 10 years

Street Lights / Lighting Systems 25 years

Airport Runway 40 years

Sealed roads and streets

clearing and earthworks not depreciated

construction/road base 50 years

original surfacing and major re-surfacing

- bituminous seals 15 years

- asphalt surfaces 25 years

Gravel roads

- clearing and earthworks not depreciated

- construction/road base 50 years

- gravel sheet 12 years

Formed roads (unsealed)

- clearing and earthworks not depreciated

- construction/road base 50 years

(j) Depreciation of Non-Current AssetsAll non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects theconsumption of the future economic benefits embodied in those assets

Depreciation is recognised on a straight-line basis, using rates which are reviewed each reporting period. Major depreciation rates andperiods are:

(k) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Council prior to the end of the financial year thatare unpaid and arise when the Council becomes obliged to make future payments in respect of the purchase of these goods andservices. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.

9




The provision for employees’ benefits to wages, salaries, annual leave and long service leave expected to be settled within 12 monthsrepresents the amount the Shire has a present obligation to pay resulting from employees services provided to balance date. Theprovision has been calculated at nominal amounts based on remuneration rates the Shire expects to pay and includes related on-costs.

(ii) Annual Leave and Long Service Leave (Long-term Benefits)The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expectedfuture payments to be made in respect of services provided by employees up to the reporting date using the project unit creditmethod. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.Expected future payments are discounted using market yields at the reporting date on national government bonds with terms tomaturity and currency that match as closely as possible, the estimated future cash outflows. Where the Shire does not have theunconditional right to defer settlement beyond 12 months, the liability is recognised as a current liability.

(m) Interest-bearing Loans and BorrowingsAll loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transactioncosts. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effectiveinterest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount ofthe loans and borrowings.

(l) Employee BenefitsThe provisions for employee benefits relates to amounts expected to be paid for long service leave, annual leave, wages and salariesand are calculated as follows:(i) Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits)

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset orliability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months,being the Council's operational cycle. In the case of liabilities where Council does not have the unconditional right to defer settlementbeyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within thenext 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months exceptfor land held for resale where it is held as non current based on Council's intentions to release for sale.

(p) Nature or Type ClassificationsRatesAll rates levied under the Local Government Act 1995. Includes general, differential, specific area rates, minimum rates, interim rates,back rates, ex-gratia rates, less discounts offered. Exclude administration fees, interest on instalments, interest on arrears and servicecharges.

Operating Grants, Subsidies and ContributionsRefer to all amounts received as grants, subsidies and contributions that are not non-operating grants.

Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for atleast 12 months after the balance sheet date. Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition,construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset.

(n) ProvisionsProvisions are recognised when: The council has a present legal or constructive obligation as a result of past events; it is more likelythan not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisionsare not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will berequired in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihoodof an outflow with respect to any one of item included in the same class of obligations may be small.

(o) Current and Non-Current Classification

Fees and ChargesRevenues (other than service charges) from the use of facilities and charges made for local government services, sewerage rates,rentals, hire charges, fee for service, photocopying charges, licences, sale of goods or information, fines, penalties and administrationfees. Local governments may wish to disclose more detail such as rubbish collection fees, rental of property, fines and penalties, otherfees and charges.

Non-Operating Grants, Subsidies and ContributionsAmounts received specifically for the acquisition, construction of new or the upgrading of non-current assets paid to a localgovernment, irrespective of whether these amounts are received as capital grants, subsidies, contributions or donations.

Profit on Asset DisposalProfit on the disposal of assets including gains on the disposal of long term investments. Losses are disclosed under the expenditureclassifications.

10




Service ChargesService charges imposed under Division 6 of Part 6 of the Local Government Act 1995. Regulation 54 of the Local Government(Financial Management) Regulations 1996 identifies these as television and radio broadcasting, underground electricity andneighbourhood surveillance services. Exclude rubbish removal charges. Interest and other items of a similar nature received from bankand investment accounts, interest on rate instalments, interest on rate arrears and interest on debtors.

Interest EarningsInterest and other items of a similar nature received from bank and investment accounts, interest on rate instalments, interest on ratearrears and interest on debtors.

Utilities (Gas, Electricity, Water, etc.)Expenditures made to the respective agencies for the provision of power, gas or water. Exclude expenditures incurred for thereinstatement of roadwork on behalf of these agencies.

InsuranceAll insurance other than worker's compensation and health benefit insurance included as a cost of employment.

Loss on asset disposalLoss on the disposal of fixed assets.

Other Revenue / IncomeOther revenue, which can not be classified under the above headings, includes dividends, discounts, rebates etc.

Employee CostsAll costs associate with the employment of person such as salaries, wages, allowances, benefits such as vehicle and housing,superannuation, employment expenses, removal expenses, relocation expenses, worker's compensation insurance, training costs,conferences, safety expenses, medical examinations, fringe benefit tax, etc.

Materials and ContractsAll expenditures on materials, supplies and contracts not classified under other headings. These include supply of goods and materials,legal expenses, consultancy, maintenance agreements, communication expenses, advertising expenses, membership, periodicals,publications, hire expenses, rental, leases, postage and freight etc. Local governments may wish to disclose more detail such ascontract services, consultancy, information technology, rental or lease expenditures.

Depreciation on non-current assetsDepreciation expense raised on all classes of assets.Interest expensesInterest and other costs of finance paid, including costs of finance for loan debentures, overdraft accommodation and refinancingexpenses.Other expenditureStatutory fees, taxes, provision for bad debts, member's fees or State taxes. Donations and subsidies made to community groups.

Activities:Include rates income, expenditure relating to the collection of rates, grants and interest on investments.

Revenues include dog and cat registration fees and fines and penalties relating to the enforcement of local parking and local laws.

Include administration and the operation of facilities and services to members of Council including fees, expenses, allowances, electionexpenses, conference expenses, refreshments and receptions.

(r) Program Classifications (Function/Activity)Shire operations as disclosed in these financial statements encompass the following service orientated activities/programs.

GOVERNANCEObjective:Provide the greatest level of administrative support to all Council functions and activities as well as to elected members.

Activities:

LAW, ORDER, PUBLIC SAFETYObjective:Ensure residents enjoy a standard of living as free as possible from the threat of bush fires and public nuisance (eg dog attacks).

Activities:Include administration and operation of fire prevention and fire fighting services. They include administration and enforcement ofanimal control, litter, parking, camping and other local laws as required.

To provide a solid financial platform by good financial management in order to provide a level of services expected by electors.

The collection point for all administration expenses relating to Council operations including office equipment and administrationcentre maintenance and various direct and indirect costs associated with administration staff (salaries, superannuation, housingmaintenance and vehicle costs). The costs are reallocated to various sub-programs by a cost allocation method determined on ausage basis.

Objective:GENERAL PURPOSE FUNDING

11




Revenue includes grants, contributions and reimbursements.

Activities:Construction and maintenance of streets, roads, depots, aerodrome, footpaths, road plant purchases, the care and maintenance ofjetties and the provision of Police Licensing services.

HOUSINGObjective:Provide high quality Aged Persons accommodation in partnership with Homeswest at a subsidised rental and to work in conjunctionwith the Government Employees Housing Authority (GEHA) to assist government employees find appropriate accommodation within

EDUCATION AND WELFARE

COMMUNITY AMENITIESObjective:

Provide high quality community amenities (eg waste management and public conveniences) for use by both residents and visitors aswell as manage the Town Planning Scheme to encourage and foster development within the Shire.

Activities:Includes the administration and operation of sanitation services, sewerage, town planning and regional development, publicconveniences and cemeteries.

RECREATION AND CULTUREObjective:

Expenses include costs associated with refuse collection, refuse site maintenance, salaries, town planning fees and charges.

Revenues include refuse collection charges, grants for coastal management, squatter charges and town planning fees and charges.

Objective:To provide services to disadvantaged persons, the elderly, children and youth.

Activities:Elderly person's activities and support, community services planning, disabled persons, youth services, aboriginal issues, playgroup,playgroup and other welfare. Maintenance of the senior citizens centre, resource centre, playgroup buildings.

Objective:Maintain a high standard of health control for the benefit of residents by ensuring compliance with all relevant legislation and regulartesting by health staff.Activities:Include the administration and operation of pest control and general health administration and inspection services.

Expenses include salaries, superannuation, vehicle costs, analytical expenses, contributions to health services, housing andadministration reallocations.Revenues include rent received, licence fees and employee reimbursements.

HEALTH

Expenses include maintenance costs and administration reallocation and Revenue is received from rent.

Activities:Includes provision, administration and operation of housing programs for GEHA and Aged Persons.

Expenses include maintenance costs, salaries and vehicle costs.

Provide cost effective recreation and culture facilities of a high standard for use by residents and visitors and help ensure that the use Activities:Include the administration and operation of public halls, community centres, beaches and foreshores, ovals, recreation centres, drive-in, libraries, museums and other significant heritage sites.

Expenses include wages, salaries, plant operation costs (fuel, oil, maintenance etc), superannuation, insurance and training.

ECONOMIC SERVICESObjective:Provide support for local industry to encourage and foster economic development within the Shire and the Midwest.

Activities:Include rural services, tourism, area promotion and building control.

OTHER PROPERTY AND SERVICESObjective:

TRANSPORTObjective:Construct and maintain a high quality road network in an efficient manner, which is designed to meet the transport requirements ofresidents, local industry and visitors.

Revenues include usage charges and reimbursements from community organisations.

Expenses include wages, salaries, superannuation, the reallocation of administration costs, materials, plant operation costs, streetlighting, and road asset management.

Revenue includes income from private works, reimbursement and sale of scrap.

Expenses include contribution for landcare co-ordinator, visitor centre running costs, salaries, superannuation and maintenance ofstandpipes.Revenues are generated from caravan park leases, building license fees and water sales.

Maintain the fleet of plant and equipment in good working order and provide additional income by utilising downtime to performprivate works.Activities:Include private works, works overheads, plant operations, youth and related activities.

12

Note 2: Explanation of Material Variances

The material variance thresholds are adopted annually by Council as an indicator of whether the actual expenditure or revenue varies from the year to date budget materially.The material variance adopted by Council for the 2018/19 year is $10,000 or 10% whichever is the greater.

Reporting Program Var. $ Var. % Var.Timing/

Permanent Explanation of Variance

$ %Opening Funding Surplus (Deficit) (44,680) (57%) q Permanent In 2017/18, a sundry debtor invoice was raised for WANDRRA for

the incorrect amount and was adjusted after budget was adopted

Operating RevenuesGovernance 217

General Purpose Funding 4,964 0%

Law, Order and Public Safety 147,965 69% p Timing Received grant revenue earlier than anticipated for the Bushfire Risk Management

Permanent No contributions towards Community Emergency Services due to DFES secondment

Health (5,961) 2-3

Welfare and Education (3,261) (24%)

Housing (12,910) (6%)

Community Amenities (30,924) (4%)

Recreation and Culture 5,593 3%

Transport 15,930 15% p Permanent Received more than anticipated for Main Roads Direct GrantEconomic Services 4,866 2%

Other Property and Services (5,949) (8%)

Operating ExpenseGovernance (29,648) (9%)

General Purpose Funding (14,643) (14%) p Permanent Increased Back Rates LeviedLaw, Order and Public Safety 4,942 13-14 Timing Anticipated Bushfire Hazard Reduction

Permanent Less Community Emergency Services expenses due to manager secondment to DFES

Permanent Bushfire Risk Management position vacantPermanent Unused Bushfire Risk Management grant funds from 2017/18

financial year returned to DFESHealth 14,412 14% q Timing Mixture of Costs less due to timing

Welfare and Education 6,019 7%

Housing 50,184 14% q Timing Staff member on leave without payTiming Less works required at The Village than anticipated

Community Amenities 51,410 1600% q Timing Less expenditure than anticipated on waste services

Recreation and Culture (10,494) (0%) Permanent Design of the 5 precincts of the Port Denison Foreshore Masterplan (funded through reserve)

Transport (199,613) 1700% Timing Maintenance works progressing ahead of scheduleEconomic Services (38,573) (12%) p Timing Standpipe Maintenance Down on Budget

Other Property and Services (215,749) 1800% Permanent Resignation payout

Timing Anticipated installation of software modules

Capital RevenuesGrants, Subsidies and Contributions (910,049) (43%) Timing Received grant funding payment from SIHI earlier than

anticipated

Proceeds from Disposal of Assets (48,636) 2300% Permanent Sweeper Sale price less than anticipated



13

Note 2: Explanation of Material Variances

The material variance thresholds are adopted annually by Council as an indicator of whether the actual expenditure or revenue varies from the year to date budget materially.The material variance adopted by Council for the 2018/19 year is $10,000 or 10% whichever is the greater.

Reporting Program Var. $ Var. % Var.Timing/

Permanent Explanation of Variance



Capital ExpensesLand and Buildings 989,742 57% q Timing Less expenditure for the SIHI project than anticipated

Timing Refurbishment not commenced at the VillageTiming Anticipated commencement of renewal at Rec Centre

Infrastructure - Roads 697,550 2400% q Timing Anticipated commencement of renewal road works

Infrastructure - Other (22,673) (28%) p Timing Anticipated commencement of renewal projects

Plant and Equipment (830,666) 25-28 Timing Anticipated commencement of plant replacement programFurniture and Equipment 51,876 621% q

Financing

Proceeds from New Debentures 0

Self-Supporting Loan Principal 23 1%

Transfer from Reserves 0

Transfer from Restricted (28) 0%

Repayment of Debentures (12) (0%)

Transfer to Reserves (41) (0%)

Transfer to Restricted 0 0%

14

Note 3: Net Current Funding Position

Last Years Closing

This Time Last Year Current

Note 30 June 2018 28 Feb 2018 28 Feb 2019$ $ $

Current AssetsCash Unrestricted 4 553,669 2,123,527 1,557,170 Cash Restricted - Conditions over Grants 11 128,248 1,035,300 1,541,842 Cash Restricted 4 2,228,638 769,776 721,413 Receivables - Rates 6 246,394 675,361 783,884 Receivables - Other 6 302,816 153,151 95,997 Interest / ATO Receivable/Trust 106,105 55,636 27,780 Inventories 20,619 14,184 20,619

3,586,489 4,826,936 4,748,706

Less: Current LiabilitiesPayables (981,236) (166,314) (166,758) Provisions (215,248) (225,263) (158,614)

(1,196,484) (391,577) (325,372)

Less: Cash Reserves 7 (1,637,248) (1,655,980) (1,703,815) Less: Cash Restricted (719,639) (149,097) (602,966)

Net Current Funding Position 33,120 2,630,283 2,116,553

Comments - Net Current Funding Position



Positive=Surplus (Negative=Deficit)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


Am

ou

nt

$ (

'00

0s)

Note 3 - Liquidity Over the Year

2018-19

2017-18

2016-17

15

Note 4: Cash and InvestmentsTotal Interest Maturity

Unrestricted Restricted Trust Amount Institution Rate Date$ $ $ $

(a) Cash DepositsMunicipal Bank Account 1,557,170 1,557,170 NAB 1.50% At CallReserve Bank Account 1,660,289 1,660,289 NAB 1.80% At CallTrust Bank Account 192,730 192,730 NAB 0.00% At CallRestricted Account 602,966 NAB 1.80% At Call

(b) Term DepositsMunicipal Account 2-3Restricted Account 0 Reserves Account 0 Total 1,557,170 2,263,255 192,730 3,410,189



16

Note 6: ReceivablesReceivables - Rates Receivable 28 Feb 2019 30 June 2018 Receivables - General Current 30 Days 60 Days 90+ Days Total

$ $ $ $ $ $ $Opening Arrears Previous Years 274,035 192,993 Receivables - General 10,921 1,322 0 83,755 95,997 Levied this year 5,172,138 4,994,155 Less Collections to date (4,512,970) (4,913,114) Balance per Trial BalanceEquals Current Outstanding 933,202 274,035 Sundry Debtors 95,997

Net Rates Collectable 933,202 274,035 Total Receivables General Outstanding 95,997 % Collected 82.86% 94.72%

Amounts shown above include GST (where applicable)2-3

13-14

16

17

Comments/Notes - Receivables Rates 18Rates are due in full or first instalment on Monday, 8 October 2018 19Second instalment due Friday, 7 December 2018 Comments/Notes - Receivables GeneralThird instalment due Thursday, 7 February 2019 20Fourth and final instalment due Monday, 8 April 2019



0

1,000

2,000

3,000

4,000

5,000

6,000


Amou

nt $

('000

s)

Note 6 - Rates Receivable

2017-18

2018-19

Current11%

30 Days2%

60 Days0%

90+ Days87%

Note 6 - Accounts Receivable (non-rates)

Current

30 Days

60 Days

90+ Days

18

Note 7: Cash Backed Reserve

NameOpening Balance

Budget Interest Earned

Actual Interest Earned

Budget Transfers In

(+)

Actual Transfers In

(+)

Budget Transfers Out

(-)

Actual Transfers Out

(-)

Budget Closing Balance

Actual YTD Closing Balance

$ $ $ $ $ $ $ $ $Leave Entitlements Reserve 197,815 4,000 2,784 0 0 0 0 201,800 200,599 Plant Replacement Reserve 87,105 1,700 1,226 150,000 0 (131,200) 0 107,600 88,331 Asset Management Reserve 778,674 15,600 10,958 0 0 (200,000) 0 594,300 789,633 Sanitation Reserve 89,663 1,800 1,262 0 0 (30,000) 0 61,500 90,925 Coastal Management Reserve 134,590 2,700 1,894 0 0 (35,000) 0 102,300 136,484 Tourism and Area Promotion Reserve 23,741 500 334 0 0 0 2-3 24,200 67,601 Recreation Centre Equipment Reserve 50,648 1,000 713 0 0 0 0 51,600 51,361 Port Denison Foreshore Development Reserve 275,010 5,500 3,870 0 0 0 0 280,500 278,881 Drive-In Reserve 0 0 0 0 0 0 0 0 0

1,637,248 32,800 23,041 150,000 0 (396,200) 0 1,423,800 1,703,815

Comments/Notes - Cash Backed Reserve

13-14

16

17

18

19

20

21

22



0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Leave Entitlements Reserve

Plant Replacement Reserve

Asset Management Reserve

Sanitation Reserve

Coastal Management Reserve

Tourism and Area Promotion Reserve

Recreation Centre Equipment Reserve

Port Denison Foreshore Development Reserve

Drive-In Reserve

Note 7 - Year To Date Reserve Balance to End of Year Estimate

Actual YTD Closing Balance

Budget Closing Balance

19

Note 8: Disposal of Assets

Asset Number Asset Description

Net Book Value Proceeds Profit (Loss)

Net Book Value Proceeds Profit (Loss)

$ $ $ $ $ $ $ $Plant and Equipment

502IR Dual Cab 0 0 27,800 29,000 1,200 507IR Trailblazer 23,643 25,455 1,812 24,400 29,000 4,600 509IR Trailblazer 24,343 25,455 1,112 25,100 29,000 3,900 530IR Mower 16,079 13,818 (2,261) 12,500 10,000 (2,500) 508IR Trailblazer 0 0 24,700 29,000 4,300 511IR Dual Cab 0 0 27,800 29,000 1,200 535IR Sweeper 141,222 15,182 (126,041) 142,200 80,000 (62,200)

IR2522 Grader 88,590 100,000 11,410 91,700 110,000 18,300 500IR Prado 43,551 59,455 15,904 40,600 60,000 19,400 510IR Prado 0 0 34,700 54,000 19,300 506IR Trailblazer 0 0 24,600 29,000 4,400 504IR Trailblazer 0 0 23,600 29,000 5,400

Furniture and Equipment1040 Coffee Machine Zura 0 0 0 0 0 2672 I Pad Air 2 - 64 GB 352 0 (352) 0 0 0

337,780 239,364 30,237 (128,654) 499,700 517,000 82,000 (64,700)

YTD Actual Budget



20

Note 9: Rating Information Numberof Rateable Rate Interim Back Total Rate Interim Back Total

Rate in Properties Value Revenue Rates Rates Revenue Revenue Rate Rate RevenueRATE TYPE $ $ $ $ $ $ $ $ $ $Differential General Rate or General RateGRV - Residential 0.103473 1,373 19,775,375 2,053,266 3,375 733 2,057,374 2,046,200 10,000 0 2,056,200 GRV - Commercial 0.103473 117 3,678,847 380,661 2,142 498 383,301 380,700 0 0 380,700 GRV - Undeveloped 0.103473 30 569,700 58,949 904 371 60,224 58,900 0 0 58,900 GRV - Residential R50 0.103473 80 1,542,656 158,569 0 0 158,569 159,600 0 0 159,600 GRV - Residential R50 Undeveloped 0.103473 16 309,900 42,827 0 284 43,110 32,100 0 0 32,100 UV - Mining 0.175726 32 2,084,725 2-3 375,993 (7,190) 735 369,538 366,300 0 0 366,300 UV - Policy Area A 0.013135 7 2,848,500 34,387 0 0 34,387 37,400 0 0 37,400 UV - Policy Area B 0.013135 13 5,427,500 71,303 0 0 71,303 71,300 0 0 71,300 UV - Policy Area C 0.013135 139 63,384,000 820,169 (3,641) 10,088 826,616 832,500 0 0 832,500 UV - Policy Area D 0.013135 113 15,565,000 203,763 0 0 203,763 204,400 0 0 204,400 UV- Policy Area E 0.013135 38 11,207,500 147,211 643 0 147,854 147,200 0 0 147,200 UV - Policy Area F 0.013135 24 5,749,000 10,989 0 0 10,989 75,500 0 0 75,500 UV - Policy Area G 0.013135 28 7,597,000 95,794 0 0 95,794 99,800 0 0 99,800

Sub-Totals 2,010 139,739,703 4,453,882 (3,767) 12,708 4,462,823 4,511,900 10,000 0 4,521,900 Minimum

Minimum Payment $GRV - Residential 999.00 41 318,583 40,959 219 0 41,178 41,000 0 0 41,000 GRV - Commercial 999.00 69 312,029 13-14 68,931 0 0 68,931 68,900 0 0 68,900 GRV - Undeveloped 999.00 466 2,055,028 462,537 (999) 0 461,538 465,500 0 0 465,500 GRV - Residential R50 999.00 3 25,168 2,997 0 0 2,997 3,000 0 0 3,000 GRV - Residential R50 Undeveloped 999.00 9 63,510 0 217 0 217 9,000 0 0 9,000 UV - Mining Improved 999.00 13 39,478 12,987 999 0 13,986 13,000 0 0 13,000 UV - Policy Area A 999.00 2 100,500 3,996 0 0 3,996 2,000 0 0 2,000 UV - Policy Area B 999.00 4 191,500 3,996 0 0 3,996 4,000 0 0 4,000 UV - Policy Area C 999.00 28 1,414,600 29,970 (999) 0 28,971 28,000 0 0 28,000 UV - Policy Area D 999.00 7 355,500 6,993 0 0 6,993 7,000 0 0 7,000 UV- Policy Area E 999.00 0 0 0 0 0 0 0 0 0 0 UV - Policy Area F 999.00 11 702,000 75,513 0 0 75,513 11,000 0 0 11,000 UV - Policy Area G 999.00 1 63,000 999 0 0 999 1,000 0 0 1,000

Sub-Totals 654 5,640,896 709,878 (563) 0 709,315 653,400 0 0 653,400

2,664 145,380,599 5,163,760 (4,330) 12,708 5,172,138 5,165,300 10,000 0 5,175,300 Amount from General Rates 5,172,138 5,175,300 Ex-Gratia Rates 2,457 2,300

Totals 5,177,600

Comments - Rating Information



YTD Actual Budget

21

Note 10: Information on Borrowings(a) Debenture Repayments

Principal Principal InterestRepayments Outstanding Repayments

Particulars 01 Jul 2018 New Loans Actual Budget Actual Budget Actual Budget$ $ $ $ $ $

Recreation and CultureLoan 93 - Recreation Centre 2,304,100 63,370 96,100 2,240,730 2,208,000 110,300 169,800 Loan 96 - Tennis Courts Resurfacing 156,100 18,719 37,700 137,381 118,400 2,397 5,300 Transport 2-3Loan 98 - Plant 0 59,400 0 854,300 0 25,300 Self Supporting LoansRecreation and CultureLoan 97 - Golf Club 36,200 3,823 7,700 0 28,500 585 1,100

2,496,400 0 85,912 200,900 2,378,110 3,209,200 113,282 201,500

All debenture repayments were financed by general purpose revenue except the Self Supporting Loan.

(b) New Debentures

Particulars

Amount Borrowed

Budget Institution Loan Type Term (Years)13-14

Total Interest & Charges

Interest Rate %

Amount Used Budget

Balance Unspent

Loan 98 - Plant 913,700 WATC Debenture 7 121,600 2.86 913,700 0 121,600 913,700 0



22

Note 11: Grants and Contributions

Grant Provider Type Opening YTD Annual Post UnspentBalance Operating Capital Budget Budget Variations Expected Revenue (Expended) Grant

(a) (d) (e) (d)+(e) (c) (a)+(b)+(c)$ $ $ $ $ $

General Purpose FundingGrants Commission - General WALGGC Operating 0 89,800 0 67,350 89,800 0 89,800 67,351 (67,351) 0 Grants Commission - Roads WALGGC Operating 0 154,900 0 116,175 154,900 0 154,900 116,156 (116,156) 0 Law, Order and Public Safety

FESA Grant - Operating Bush Fire Brigade Dept. of Fire & Emergency Serv. Operating - Tied 11,646 37,500 0 25,832 37,500 0 37,500 0 (27,087) (15,441) Bushfire Risk Management Project Dept. of Fire & Emergency Serv. Operating - Tied 32,300 100,800 2-3 100,800 100,800 0 100,800 287,431 (68,329) 251,401 Community Emergency Services Dept. of Fire & Emergency Serv. Operating - Tied 0 103,600 0 51,800 103,600 0 103,600 22,278 (50,533) (28,255) LG Grant Scheme & Mitigation Activity Funding Dept. of Fire & Emergency Serv. Operating - Tied 0 15,000 0 15,000 15,000 0 15,000 23,293 (72,000) (48,708) Welfare & Education

Seniors Week Grant Council on the Ageing Operating 0 2,000 0 2,000 2,000 0 2,000 0 (426) 0 Housing

SIHI Aging in Place WA Country Health Service Non-operating 42,184 0 2,397,700 1,598,464 2,397,700 0 2,397,700 955,519 (753,386) 244,317 Community Amenities

Local Planning Scheme Review Department of Planning Operating - Tied 22,283 0 0 0 0 0 0 0 0 22,283 Springfield Structure Plan Grant Department of Planning Operating - Tied 10,795 0 0 0 0 0 0 0 0 10,795 Waste Authority Services - Wake up Plastics Waste Authority Services Operating - Tied 763 0 0 0 0 0 0 0 0 763 Recreation and Culture

Coastal Nodes Project - Stage 3 - Project Management Department of Regional DevelopmentOperating - Tied 1,500 0 13-14 0 0 0 0 0 0 1,500 Volunteer, Youth, Healthways Sprint, Country Arts WA, Thungara Trails Art Walk Various Operating 0 0 0 0 0 0 0 0 0 0 Waste Authority Grant Dept. of Water & Environmental Operating 0 0 0 0 0 0 0 21,469 (21,469) 0 Recreational Grant Various Operating 0 12,500 0 8,336 12,500 0 12,500 0 0 0 Other Grant Events Various Operating 0 7,500 16 5,000 7,500 0 7,500 7,200 (7,200) 0 Transport

Direct Grant Main Roads WA Operating 0 47,000 17 47,000 47,000 0 47,000 76,396 0 0 Roads To Recovery Grant Roads to Recovery Non-operating 0 0 174,200 130,650 174,200 0 174,200 45,455 (63,002) (17,548) RRG Grants - Capital Projects Regional Road Group Non-operating 0 0 18 389,775 519,700 0 519,700 207,867 (320) 207,547 Roadwise Grant Road Safety Commission Non-operating 6,776 0 0 0 0 0 0 0 0 6,776

TOTALS 128,248 570,600 20 2,558,182 3,662,200 0 3,662,200 1,830,414 (1,247,259) 635,433

SUMMARY 21 Operating Operating Grants, Subsidies and Contributions 0 313,700 33 245,861 313,700 0 313,700 288,571 (212,601) 0 Operating - Tied Tied - Operating Grants, Subsidies and Contributions 79,288 256,900 22 193,432 256,900 0 256,900 333,002 (217,950) 194,340 Non-operating Non-operating Grants, Subsidies and Contributions 48,960 0 2,571,918 2,118,889 3,091,600 0 3,091,600 1,208,840 (816,708) 441,093

TOTALS 128,248 570,600 23 2,558,182 3,662,200 0 3,662,200 1,830,414 (1,247,259) 635,433

Budget YTD Actual



23

Note 12: Trust Fund

Funds held at balance date over which the Shire has no control and which are not included in thisstatement are as follows:

Opening Balance Amount Amount

Closing Balance

Description 01 Jul 2018 Received Paid 28 Feb 2019$ $ $ $

The Village Bonds 17,171 570 (450) 17,291 Kerbing Deposits 30,700 5,000 (13,800) 21,900 Performance Bonds 75,833 0 0 75,833 Nomination Deposits 0 0 0 0 Youth Advisory Council 17,014 0 0 17,014 Key Bonds 3,170 600 (50) 3,720 Safer WA Committee 341 0 0 341 Grant Funds 34,617 0 (27,974) 6,644 Non Shire Internal Activity 0 11,102 (10,240) 862 Various Bonds 10,448 850 (9,053) 2,244 Shire of Irwin - LEMC 4,887 0 0 4,887 Toddler Time - Rec Centre 703 0 0 703 Public Open Space Contributions 37,812 3,480 0 41,292 Transport Licensing 6,123 0 (6,123) 0

238,818 21,602 (67,690) 192,730



24

Note 13: Capital Acquisitions

Assets New/Upgrade Renewal Total YTDAnnual Budget YTD Budget YTD Variance

Strategic Reference / Comment

$ $ $ $ $ $

Level of completion indicator, please see table at the end of this note for further detail.

BuildingsLaw, Order & Public Safety

Upgrade internal pound facility 0 0 0 2,700 2,700 (2,700) Law, Order & Public Safety Total 0 0 0 2,700 2,700 (2,700)

HousingAge Housing Appropriate Project 753,386 0 753,386 2,455,400 1,642,100 (888,714) Refurbishment - The Village 0 0 0 30,000 20,000 (20,000)

Housing Total 753,386 0 753,386 2,485,400 1,662,100 (908,714) Recreation and Culture Irwin Rec Centre renewal 0 0 0 53,500 49,068 (49,068)

RSL storm water drainage improvements - year 3 0 0 0 29,000 26,596 (26,596) Recreation And Culture Total 0 0 0 82,500 75,664 (75,664)

TransportReplace carpet - depot 0 0 0 3,700 2,464 (2,464)

Transport Total 0 0 0 3,700 2,464 (2,464) Other Property and Services

Air conditioner installed into Server Room (Chambers) 2,000 0 2,000 2,200 2,200 (200) Transport Total 2,000 0 2,000 2,200 2,200 (200)

Buildings Total 755,386 0 755,386 2,576,500 1,745,128 (989,742)

Furniture & Office Equip.Governance

Replace Computers & iPads 0 0 0 5,000 3,350 (3,350) Governance Total 0 0 0 5,000 3,350 (3,350)

TransportReplace Printer/Copier/Fax/Scanner 0 4,005 4,005 5,000 5,000 (996)

Transport Total 0 4,005 4,005 5,000 5,000 (996)

Furniture & Office Equip. Total 0 4,005 4,005 10,000 8,350 (4,346)



YTD Actual Budget

25




$ $ $ $ $ $



YTD Actual Budget

Plant , Equip. & VehiclesLaw, Order And Public Safety

Ranger Vehicle Replacement 0 0 0 34,000 0 0 Law, Order And Public Safety Total 0 0 0 34,000 0 0

Community Amenities 25-28Manager Vehicle Replacement 0 34,116 34,116 34,000 34,000 116

Community Amenities Total 0 34,116 34,116 34,000 34,000 116 Recreation and Culture

Manager Vehicle Replacement 0 0 0 34,000 0 0 Toro Groundmaster 360 Quad Steer Mower 64,173 0 64,173 64,500 0 64,173 Trailer - Zero Turn Mower & 360 Mower 25,450 0 25,450 11,000 11,000 14,450

0 0 0 11,000 11,000 (11,000) Recreation and Culture Total 89,623 0 89,623 120,500 22,000 67,623

TransportManager Vehicle Replacement 0 0 0 34,000 0 0 Operations Utlity 0 0 0 34,000 0 0 Sweeper 155,420 0 155,420 130,000 0 155,420 Grader 0 346,672 346,672 365,000 0 346,672 JCB attachments 0 2,676 2,676 4,500 0 2,676 Crane for Maintenance Truck 0 26,013 26,013 11,200 0 26,013 Prime Mover 0 0 0 186,000 0 0 22,000ltr Water Tanker 0 68,000 68,000 85,000 0 68,000 Smooth Drum Steel Roller 130,030 0 130,030 160,000 0 130,030

Transport Total 285,450 443,361 728,811 1,009,700 0 728,811 Other Property and Services

CEO Vehicle Replacement 0 0 0 61,000 0 0 Manager Vehicle Replacement 0 0 0 34,000 0 0 Pooled Vehicle Replacement 0 34,116 34,116 34,000 0 34,116

Recreation and Culture Total 0 34,116 34,116 129,000 0 34,116 Plant , Equip. & Vehicles Total 375,073 511,593 886,666 1,327,200 56,000 830,666

26




$ $ $ $ $ $



YTD Actual Budget

Instrustructure Assets - OtherCommunity Amenities

Cemetery landscaping 0 0 0 19,500 13,000 (13,000) Community Amenities Total 0 0 0 19,500 13,000 (13,000)

Recreation And CultureRec Jetty repairs 44,092 0 44,092 60,000 0 44,092 Fertigation Sysemt for Port Denison Oval 0 0 0 6,500 0 0 Reticulation and landscaping in front of new IGA 6,550 0 6,550 3,000 0 6,550 Replace fence at Drive in 0 7,864 7,864 7,500 5,000 2,864

Recreation And Culture Total 50,641 7,864 58,505 77,000 5,000 53,505 Transport

Rural signs 0 27,609 27,609 32,900 21,936 5,673 Supply & Install New Bus Shelter - Waldeck Street 12,935 0 12,935 20,200 20,200 (7,265) Kailis Drive entry statement design 3,760 0 3,760 20,000 20,000 (16,240) Water Bores Transfer from road infrastructure

Transport Total 16,695 27,609 44,304 73,100 62,136 (17,832)

Instrustructure Assets - Other Total 67,336 35,473 102,809 169,600 80,136 22,673

Instrustructure Assets - RoadsTransportRoads to Recovery Works

Gravel Sheeting (to be determined from community needs and road condition assessments) 8,328 0 8,328 174,200 116,128 (107,801)

Roads to Recovery Works Total 8,328 0 8,328 174,200 116,128 (107,801) Regional Road Group Works

Point Leander Drive - Reseal 0 0 0 443,600 295,735 (295,735) Point Leander Drive - Reseal 0 63,322 63,322 336,000 224,001 (160,679)

Regional Road Group Works Total 0 63,322 63,322 779,600 519,736 (456,414)

27




$ $ $ $ $ $



YTD Actual Budget

Instrustructure Assets - Roads ContinuedTransport ContinuedMunicipal Works - Rural

Water Bores 0 0 0 200,000 133,336 (133,336) Transfer to other infrastructureMunicpal Works Total 0 0 0 200,000 133,336 (133,336)

Instrustructure Assets - Roads Total 8,328 63,322 71,650 1,153,800 769,200 (697,550)

Capital Expenditure Total 1,206,123 614,392 1,820,515 5,237,100 2,658,814 (838,299) Level of Completion Indicators0%20%40%60%80%100%Over 100%

28


ATTACHMENT: RS01

Amendments to Local Planning Policy – Sea Containers

Policy Name Local Planning Policy for Sea Containers

Purpose To provide guidance for proposals for sea containers

Statutory Compliance

Shire of Irwin Local Planning Scheme No. 5 Planning and Development Act 2005

Definitions Sea Container: Large metal container originally intended to carry goods on a sea vessel. Outbuilding: a detached enclosed, non-habitable structure, including garages, storage sheds, studios, games rooms and patios, but not carports, pergolas or structures that are connected to or form part of the main building. In the Residential zone: an outbuilding is defined as an enclosed non-habitable structure that is detached from a dwelling, but not a garage. R-Codes: Residential Design Codes of Western Australia: provide a basis for planningand approval of residential and ancillary development.

Policy Objectives:

The objectives are:

To provide clear guidelines for the placement and use of sea containers;

To ensure there are no adverse impacts on the neighbouring properties, the streetscape or

the overall area;

To eliminate the unauthorised use of sea containers; and

To set out minimum standards and requirements.

Policy Provisions:

1. Development approval is required for all sea containers, unless the sea container is

incidental to an industrial land use and meets the relevant development requirements for

the zone in which it is located.

2. Sea containers must not adversely affect the amenity of neighbouring properties, the

streetscape or the area when viewed from public roads.

3. Sea containers will only be granted approval if there is acceptable cladding, external

colouring and/or screening of the sea container from neighbouring properties and the public

road.

4. Where a sea container is proposed for storage purposes while building a single house, the

Local Government will only grant temporary approval for a period of two years.

5. Sea containers should generally comply with the criteria set out in Table 1 below.

Table 1

Zoning Setback Requirements Maximum Number of

Containers

Commercial Zones At the discretion of the Local Government. One (1)

General Farming Front Rear Side

- 15m 7.5m 5m

Industrial Zones Front Rear Side

- 11m 7.5m

As per Building Code

Residential In accordance with the requirements of

the R-Codes One (1)

Rural Residential Front Rear Side

- 15m 7.5m 5m

Rural Smallholdings

Front Rear Side -

15m 7.5m 5m

Special Residential Front Rear Side

One (1) 20m 10m 5m

Town Centre As in accordance with the Dongara Town

Centre Precinct Plan. One (1)

6. In Service Commercial and Town Centre zones sea containers must not have adverse

impacts on any approved development, such as parking and landscaping requirements.

7. Sea containers must not:

a. Obstruct vehicle or pedestrian sightlines;

b. Be placed on verges or road reserves, or other public places;

c. Be used for human habitation;

d. Be located over septic tanks, leach drains or other effluent disposal utilities, or

within;

i. 1.8m from drains; and

ii. 1.2m from tanks

8. Sea containers must be located on a flat, compacted area

9. The Local Government reserves the right to instruct a landowner to remove a sea container

from the land if any, or all, of the approval conditions are not carried out to the satisfaction

of the Local Government.

Variations of Provisions:

Variations to the above policy provisions can be considered acceptable where there are no adverse

amenity impacts on neighbouring properties or when viewed from a public road. When assessing

variations, the Local Government may refer the application to neighbours for comment. Variations

shall be determined in accordance with the purpose, objectives and other relevant provisions of this

policy.

Guidance:

When applying for Development Approval, the following information must be submitted;

A copy of the;

o Site plan,

o Floor plan, and

o Elevations

A written statement outlining the intended use of the sea container

Photographs of the sea container

A signed development application form

Payment of the appropriate fee

A building permit may be required for sea containers. For further information, contact the Shire of

Irwin Building Services.


ATTACHMENT: CEO01

Budget Review 2018/19

SHIRE OF IRWINBUDGET REVIEW REPORT

FOR THE PERIOD ENDED 28 FEBRUARY 2019

LOCAL GOVERNMENT ACT 1995LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

TABLE OF CONTENTS

Statement of Budget Review by Nature or Type 1Statement of Budget Review by Program 2

Note 1 Basis of Preparation 3Note 2 Summary Graphs - Budget Review 4Note 3 Net Current Funding Position 5Note 4 Predicted Variances 7

NoteAnnual

Budget (a)

YTD Actual

(b)

VariancePermanent

(c)

Variance Timing

(Carryover)(d)

Year End (a)+(c )+(d)

OPERATING ACTIVITIES $ $ $ $ $Net current assets at start of financial yearsurplus/(deficit) 77,800 33,120 (44,680) 33,120

Revenue from operating activities (excluding rates)Operating grants, subsidies and contributions 572,900 520,583 69,000 641,900 Profit on asset disposals 4.1.1 82,000 30,237 82,000Fees and charges 4.1.2 1,647,200 1,280,740 (26,970) 1,620,230 Service charges 4.1.3 0 0 0Interest earnings 4.1.7 124,200 82,701 124,200Other revenue 4.1.8 150,400 133,557 150,400

2,576,700 2,047,818 (2,650) 0 2,618,730Expenditure from operating activitiesEmployee costs 4.2.1 (3,207,600) (2,007,177) (66,000) (3,273,600) Materials and contracts 4.2.2 (3,079,100) (1,883,580) (689,800) (3,768,900) Utility charges 4.2.3 (400,800) (216,065) (400,800)Depreciation on non-current assets 4.2.4 (4,254,900) (1,111,566) 418,120 (3,836,780) Interest expenses 4.2.5 (201,500) (100,632) 25,300 (176,200) Insurance expenses 4.2.6 (178,400) (177,861) (178,400)Loss on asset disposals 4.2.6 (64,700) (128,654) (64,700)Other expenditure 4.2.7 (175,200) (166,657) (24,000) (199,200)

(11,562,200) (5,792,192) (336,380) 0 (11,898,580)Operating activities excluded from budgetDepreciation on assets 4.2.4 4,254,900 1,111,566 (418,120) 3,836,780 (Profit)/loss on asset disposal 4.4.3 (17,300) 98,417 (63,300) (80,600) Adjust provisions and accruals (3,500) 36,378 (3,500)Amount attributable to operating activities (4,673,600) (2,464,893) (820,450) 0 (5,494,050)

INVESTING ACTIVITIESNon-operating grants, subsidies and contributions 4.3.1 3,091,600 1,208,840 (941,481) 2,150,119 Proceeds from disposal of assets 4.3.2 517,000 239,364 517,000Purchase land and buildings 4.4.2 (2,576,500) (749,032) 1,316,485 (1,260,015) Purchase property, plant and equipment 4.4.3 (1,327,200) (882,321) 118,300 (1,208,900) Purchase furniture and equipment 4.4.4 (10,000) (4,005) (10,000)Purchase and construction of infrastructure-roads 4.4.5 (1,153,800) (62,850) 97,000 (1,056,800)

Purchase and construction of infrastructure-other 4.4.6 (169,600) (102,774) (169,600)Amount attributable to investing activities (1,628,500) (352,778) 215,300 375,004 (1,038,196)

FINANCING ACTIVITIESRepayment of debentures 4.4.8 (200,900) (77,835) 59,400 (141,500) Proceeds from new borrowings 4.3.3 913,700 0 913,700Self Supporting Loan Principal 4.3.6 7,700 3,823 7,700Transfers from Reserves 4.3.7 396,200 574,814 971,014Transfers from Restricted 4.5.11 458,200 119,972 458,200Transfers to Reserves 4.3.9 (182,800) (20,752) (182,800)Transfers to Restricted 4.5.10 (265,300) (3,300) (375,004) (640,304) Amount attributable to financing activities 1,126,800 21,908 634,214 (375,004) 1,386,010Budget deficiency before general rates (5,175,300) (2,795,763) 29,064 0 (5,146,236)Estimated amount to be raised from general rates 5,175,300 5,167,527 5,175,300Closing funding surplus(deficit) 2 0 2,371,764 29,064 0 29,064

SHIRE OF IRWINSTATEMENT OF BUDGET REVIEW


PredictedBudget v Actual

(NATURE OR TYPE)

Note

Adopted Annual Budget

(a)

YTD Actual

(b)

VariancePermanent

(c)

Variance Timing

(Carryover)(d)

Year End (a)+(c)+(d)

Material Variance

OPERATING ACTIVITIES $ $ $ $ $

Net current assets at start of financial year surplus/(deficit) 77,800 33,120 (44,680) 33,120

Revenue from operating activities (excluding rates)Governance 0 217 0General purpose funding 395,700 225,747 395,700Law, order, public safety 280,100 337,653 40,000 320,100 Health 26,700 11,153 26,700Education and welfare 18,400 9,169 18,400Housing 310,700 166,526 (28,000) 282,700 Community amenities 840,800 750,645 1,030 841,830 Recreation and culture 249,600 167,279 249,600Transport 97,500 118,241 29,000 126,500 Economic services 244,900 198,329 244,900Other property and services 30,300 61,391 30,300

2,494,700 2,046,350 42,030 0 2,536,730Expenditure from operating activitiesGovernance (409,300) (339,326) 14,885 (394,415) General purpose funding (203,200) (106,797) 7,390 (195,810) Law, order, public safety (730,100) (367,537) 26,551 (703,549) Health (156,400) (84,090) 5,688 (150,712) Education and welfare (123,600) (67,964) 4,495 (119,105) Housing (551,400) (285,502) (3,700) 20,052 (535,048) Community amenities (1,332,200) (753,538) (132,000) 48,447 (1,415,753) Recreation and culture (3,251,000) (1,952,670) (276,700) 118,226 (3,409,474) Transport (4,164,000) (1,255,025) (86,200) 151,429 (4,098,771) Economic services (494,300) (335,585) (60,000) 17,976 (536,324) Other property and services (82,000) (242,690) (195,900) 2,982 (274,918)

(11,497,500) (5,790,724) (754,500) 418,120 (11,833,880)Operating activities excluded from budgetDepreciation on assets 4,254,900 1,111,566 (418,120) 3,836,780 Adjust (Profit)/Loss on Asset Disposal 0 98,417 (63,300) (63,300) Adjust Provisions and Accruals (3,500) 36,378 (3,500)Amount attributable to operating activities (4,673,600) (2,464,893) (820,450) 0 (5,494,050)

INVESTING ACTIVITIESNon-operating grants, subsidies and contributions 3,091,600 1,208,840 (941,481) 2,150,119Proceeds from disposal of assets 517,000 239,364 517,000Purchase land and buildings (2,636,500) (749,032) 1,316,485 (1,320,015) Purchase plant and equipment (1,327,200) (62,850) 118,300 (1,208,900) Purchase furniture and equipment (10,000) (102,774) (10,000)Purchase and construction of infrastructure - roads (1,153,800) (882,321) 97,000 (1,056,800) Purchase and construction of infrastructure - other (109,600) (4,005) (109,600)Amount attributable to investing activities (1,628,500) (352,778) 215,300 375,004 (1,038,196)

FINANCING ACTIVITIESRepayment of borrowings (200,900) (77,835) 59,400 (141,500) Proceeds from new borrowings 913,700 0 913,700Self Supporting Loan Principal 7,700 3,823 7,700Transfers from Reserves 396,200 0 574,814 971,014 Transfers from Restricted 458,200 119,972 458,200Transfers to Reserves (182,800) (20,752) (182,800)Transfers to Restricted (265,300) (3,300) (375,004) (640,304) Amount attributable to financing activities 1,126,800 21,908 634,214 (375,004) 1,386,010Budget deficiency before general rates (5,175,300) (2,795,763) 29,064 0 (5,146,236)Estimated amount to be raised from general rates 5,175,300 5,167,527 5,175,300Closing Funding Surplus(Deficit) 2 0 2,371,764 29,064 0 29,064

Budget v Actual Predicted

SHIRE OF IRWINSTATEMENT OF BUDGET REVIEW

(STATUTORY REPORTING PROGRAM)FOR THE PERIOD ENDED 28 FEBRUARY 2019

SHIRE OF IRWINNOTES TO AND FORMING PART OF THE BUDGET REVIEW REPORT

FOR THE YEAR ENDED 30 JUNE 2019

1. BASIS OF PREPARATION

The budget review report has been prepared in CRITICAL ACCOUNTING ESTIMATESaccordance with applicable Australian Accounting The preparation of a financial report in conformity Standards (as they apply to local government and with Australian Accounting Standards requires not-for-profit entities), Australian Accounting management to make judgements, estimates and Interpretations, other authorative pronouncements assumptions that effect the application of policies of the Australian Accounting Standards Board, the and reported amounts of assets and liabilities, Local Government Act 1995 and accompanying income and expenses.regulations. Material accounting policies which have been adopted in the preparation of this The estimates and associated assumptions are budget review report are presented below and based on historical experience and various other have been consistently applied unless stated factors that are believed to be reasonable underotherwise. the circumstances; the results of which form the

basis of making the judgements about carrying The report has been prepared on the accrual basis values of assets and liabilities that are not readily and is based on historical costs, modified, where apparent from other sources. Actual results mayapplicable, by the measurement at fair value of differ from these estimates.selected non-current assets, financial assets and liabilities. 2018/19 ACTUAL BALANCES

Balances shown in this budget review report as THE LOCAL GOVERNMENT REPORTING 2018/2019 Actual are as forecast at the time of ENTITY budget review preparation and are subject to final All funds through which the adjustments.Shire of Irwin controlsresources to carry on its functions have been ROUNDING OFF FIGURESincluded in the financial statements forming part All figures shown in this budget review report are of this budget review. rounded to the nearest dollar.

In the process of reporting on the local BUDGET COMPARATIVE FIGURESgovernment as a single unit, all transactions and Unless otherwise stated, the budget comparative balances between those Funds (for example, figures shown in this budget review report relate loans and transfers between Funds) have been to the original budget estimate for the relevant eliminated. item of disclosure.

2. SUMMARY GRAPHS - BUDGET REVIEW

This information is to be read in conjunction with the accompanying financial statements and notes.

SHIRE OF IRWINSUMMARY GRAPHS - BUDGET REVIEW

FOR THE PERIOD ENDED FOR THE PERIOD ENDED 28 FEBRUARY 2019

0

5000

10000

15000


Operating Expenses

Operating Expenses Budget 2018-19 $('000s)

Operating Expenses Actual 2018-19 $('000s)

Operating Expenses Predicted 2018-19 $('000s)

0

5000

10000


Operating Revenue

Operating Revenue Budget 2018-19 $('000s)

Operating Revenue Actual 2018-19 $('000s)

Operating Revenue Predicted 2018-19 $('000s)

0

2000

4000

6000


Capital Expenditure

Capital Expenses Budget 2018-19 $('000s)

Capital Expenses Actual 2018-19 $('000s)

Capital Expenses Predicted 2018-19 $('000s)

0

1000

2000

3000

4000


Capital Revenue

Capital Revenue Budget 2018-19 $('000s)

Capital Revenue Actual 2018-19 $('000s)

Capital Revenue Predicted 2018-19 $('000s)

© Moore Stephens (WA) Pty LtdBudget Workshop 2017

4. Budget Review | 6

3. NET CURRENT FUNDING POSTION

Note This Period Last Period Same Period Last Year $ $ $

Current assetsCash unrestricted 1,561,444 2,150,199 2,154,850 Cash Restricted - Conditions over Grants 1,519,564 1,507,918 1,035,300 Cash restricted 741,402 750,517 780,827 Receivables - rates and rubbish 994,652 1,118,859 874,676 Receivables - other 111,909 233,848 730,727 Interest / ATO Receivable/Trust 76,275 63,398 26,206 Inventories 20,619 20,619 14,184

5,025,865 5,845,358 5,616,770

Less: current liabilitiesPayables (234,247) (203,837) (216,944)Provisions (158,891) (213,046) (225,263)

(393,138) (393,138) (442,207)

Less: cash reserves (1,658,000) (1,658,000) (1,655,980)Less: cash restricted (602,966) (602,966) (160,148)Net current funding position 2,974,727 3,794,220 3,358,435

2018-19

SHIRE OF IRWINNOTES TO THE BUDGET REVIEW REPORT


Positive=Surplus (Negative=Deficit)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


Liquidity Over the Year

Actual 2016-17 $('000s) Actual 2017-18 $('000s) Actual 2018-19 $('000s) Predicted 2018-19 $('000s)

© Moore Stephens (WA) Pty LtdBudget Workshop 2017

4. Budget Review | 23

3. COMMENTS/NOTES - NET CURRENT FUNDING POSITION (CONTINUED)

SIGNIFICANT ACCOUNTING POLICIES LOANS AND RECEIVABLES CASH AND CASH EQUIVALENTS Loans and receivables are non-derivative financial assets with fixed or Cash and cash equivalents include cash on hand, cash at bank, determinable payments that are not quoted in an active market and are deposits available on demand with banks, other short term highly subsequently measured at amortised cost. Gains or losses are liquid investments that are readily convertible to known amounts of recognised in profit or loss. Loans and receivables are included in cash and which are subject to an insignificant risk of changes in current assets where they are expected to mature within 12 months value and bank overdrafts. after the end of the reporting period.

Bank overdrafts are shown as short term borrowings in current TRADE AND OTHER PAYABLESliabilities in Note 2 Net Current Assets of the budget. Trade and other payables represent liabilities for goods and services

provided to the Shire of Irwin prior to the end of theTRADE AND OTHER RECEIVABLES financial year that are unpaid and arise when theTrade and other receivables include amounts due from ratepayers for Shire of Irwin becomes obliged to make futureunpaid rates and service charges and other amounts due from third payments in respect of the purchase of these goods and services. The parties for goods sold and services performed in the ordinary course amounts are unsecured, are recognised as a current liability and are of business. normally paid within 30 days of recognition.

Receivables expected to be collected within 12 months of the end of EMPLOYEE BENEFITSthe reporting period are classified as current assets. All other Short-Term Employee Benefitsreceivables are classified as non-current assets. Provision is made for the Shire of Irwin's obligations

for short-term employee benefits. Short-term employee benefits are Collectability of trade and other receivables is reviewed on an benefits (other than termination benefits) that are expected to be settled ongoing basis. Debts that are known to be uncollectible are written wholly before 12 months after the end of the annual reporting period in off when identified. An allowance for doubtful debts is raised when which the employees render the related service, including wages, there is objective evidence that they will not be collectible. salaries and sick leave. Short-term employee benefits are measured at

the (undiscounted) amounts expected to be paid when the obligation is INVENTORIES settled. GeneralInventories are measured at the lower of cost and net realisable value. The Shire of Irwin's obligations for short-term

employee benefits such as wages, salaries and sick leave are Net realisable value is the estimated selling price in the ordinary recognised as a part of current of financial trade and other payables in course of business less the estimated costs of completion and the the statement position. Shire of Irwin's obligationsestimated costs necessary to make the sale. for employees’ annual leave and long service leave entitlements are

recognised as provisions in the statement of financial position.CURRENT AND NON-CURRENT CLASSIFICATIONIn the determination of whether an asset or liability is current or PROVISIONSnon-current, consideration is given to the time when each asset or Provisions are recognised when the Shire of Irwinliability is expected to be settled. The asset or liability is classified as has a legal or constructive obligation, as a result of past events, for current if it is expected to be settled within the next 12 months, being which it is probable that an outflow of economic benefits will result and the Shire of Irwin's operational cycle. In the case of that outflow can be reliably measured.liabilities where the Shire of Irwin does not have theunconditional right to defer settlement beyond 12 months, such as Provisions are measured using the best estimate of the amounts vested long service leave, the liability is classified as current even if required to settle the obligation at the end of the reporting period.not expected to be settled within the next 12 months. Inventories heldfor trading are classified as current even if not expected to be RATES, GRANTS, DONATIONS AND OTHER CONTRIBUTIONSrealised in the next 12 months except for land held for sale where it Rates, grants, donations and other contributions are recognised as is held as non-current based on the Shire of Irwin's as revenues when the Shire of Irwin obtainsintentions to release for sale. control over the assets comprising the contributions.

Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates.

SHIRE OF IRWINNOTES TO THE BUDGET REVIEW REPORT


4. PREDICTED VARIANCES

Comments/Reason for VariancePermanent Timing

Net current assets at start of financial year surplus/(deficit) (44,680) Permanent

4.1 OPERATING REVENUE (EXCLUDING RATES)

4.1.1 PROFIT ON ASSET DISPOSAL

4.1.2 FEES AND CHARGESAnticipated less Rental Income on housing due to Property Vacancies (28,000)Reduced Commercial Waste management Charges (12,000)Recycling Income up on Budget 13,0304.1.3 GRANTS, SUBSIDIES AND CONTRIBUTIONSAdditional Direct Road Grant 29,000Bushfire Risk Management Grant Funding 40,000

4.1.7 INTEREST EARNINGS

4.1.8 OTHER REVENUE

Predicted Variances Carried Forward (2,650) 0

Predicted Variances Brought Forward (2,650) 04.2 OPERATING EXPENSES

4.2.1 EMPLOYEE COSTSExtraordinary Payouts (273,000)Reduction in wages due to Restructure 237,000CEO Recruitment (25,000)Plant Officers Recruitment (5,000)

4.2.2 MATERIAL AND CONTRACTSIncrease in Water Charges due to property vacancy (3,700)Decrease in Expenditure Admin Building Maintenance 15,100Increase in Rec & Culture Building Maintenance (31,700)Increase in Building Maintenance of Transport (12,200)Parks & Garden increased expenditure in materials & contracts (30,000)Admin Consultants not Budgeted (60,000)Change Rec Centre Expenditure from Operating to Capital 5,700Increase in Fuel and Oils (50,000) *Increase in External Parts and Repairs (70,000) *Increase in Domestic Refuse Costs (16,000) *Increase in Transfer Station Maintenance - Waste Management (48,000) *Increase in Transfer Station Maintenance - Works (22,000) *Increase in Commercial Waste Collection (25,000) *Increase in Community Waste Collection (7,000) *Overspend in Road Maintenance (99,000) *Parks & Garden increased expenditure on Grannies Beach Retaining (25,000) *Parks & Garden increased expenditure on Playground Sand Replacement (30,000) *Parks & Garden increased expenditure on Surf Beach Sand Replacement (50,000) *Foreshore Reserve Consultants (100,000) *Synergy Software Support Chart of Accounts (25,000) *Office Renovation Executive Support (6,000) *

* once-off variations - total of (573,000)

4.2.3 UTILITY CHARGES

4.2.4 DEPRECIATION (NON CURRENT ASSETS)Decrese In Depreciation 0

.4.2.4 INTEREST EXPENSESLoan 98 Not drawn down so no interest this Financial Year 25,300

Variance $

SHIRE OF IRWINNOTES TO THE REVIEW OF THE ANNUAL BUDGET




Variance $



4.2.5 INSURANCE EXPENSESNo Material Variance

4.2.6 LOSS ON ASSET DISPOSAL

4.2.7 OTHER EXPENDITUREExtraordinary Refunds Waste (14,000)Building Maintenance Dongara Bowling Club (10,000)

Predicted Variances Carried Forward (757,150) 0

Predicted Variances Brought Forward (757,150) 04.3 CAPITAL REVENUE

4.3.1 GRANTS, SUBSIDIES AND CONTRIBUTIONSAged in Place Timing Difference to Budget (941,481)

4.3.2 PROCEEDS FROM DISPOSAL OF ASSETSSale of Mini Sweeper generated only $16,700 against Budgeted $80,000 (63,300)

4.3.3 PROCEEDS FROM NEW DEBENTURESNo Material Variance

4.3.4 PROCEEDS FROM SALE OF INVESTMENTNo Material Variance

4.3.5 PROCEEDS FROM ADVANCESNo Material Variance

4.3.6 SELF-SUPPORTING LOAN PRINCIPALNo Material Variance

4.3.7 TRANSFER FROM RESERVES (RESTRICTED ASSETS)Transfer to pay Consultants Bills 100,000Transfer to Pay Landfill Works 60,000Regional Road Group 260,000Sand Projects 75,000Transfer from Leave Reserve to cover extraordinary leave payouts from organisational restructure 79,814

Predicted Variances Carried Forward (1,187,117) 0

Predicted Variances Brought Forward (1,187,117) 04.4 CAPITAL EXPENSES

4.4.1 LAND HELD FOR RESALENo Material Variance

4.4.2 LAND AND BUILDINGSAged in Place Timing Difference to Budget 1,316,485

4.4.3 PLANT AND EQUIPMENTMCS Vehicle not Renewed 34,000MCC Vehicle not Renewed 34,000MTS Vehicle not Renewed 34,000New Rec Centre Equipment (5,700)Fire Vehicle Transfrred to Shire of Dandaragan 22,000

4.4.4 FURNITURE AND EQUIPMENTNo Material Variance

4.4.5 INFRASTRUCTURE ASSETS - ROADSRoads to Recovery done in-house instead of Contactors Reallocated to POC & Employee Costs 117,000Additional Expenditure to finish Intersection before winter (20,000)4.4.6 INFRASTRUCTURE ASSETS - OTHERNo Material Variance

4.4.7 PURCHASES OF INVESTMENT



Variance $



No Material Variance

4.4.8 REPAYMENT OF DEBENTURESLoan 98 Not drawn down so no Principal Repayment this Financial Year 59,400

4.4.9 ADVANCES TO COMMUNITY GROUPSNo Material Variance

Predicted Variances Carried Forward 404,068 0

Predicted Variances Brought Forward 404,068 04.5 OTHER ITEMS

4.5.10 TRANSFER TO RESTRICTED ASSETSAged in Place Timing Difference to Budget (375,004)

4.5.11 TRANSFER FROM RESTRICTED ASSETSNo Material Variance

4.5.1 RATE REVENUENo Material Variance

4.5.2 OPENING FUNDING SURPLUS(DEFICIT)

4.5.3 NON-CASH WRITE BACK OF PROFIT (LOSS)

Total Predicted Variances as per Annual Budget Review 29,064 0


ATTACHMENT: CEO02

Long Term Financial Plan

AAttachment 1 - Long Term Financial Plan 2018-2028 AAttachment 2 - 2018 Management Report AAttachment 3 - Ratio Commentary Report

[Type here]

Shire of Irwin

Long Term Financial Plan 2018 – 2028

March 2019

Attachment 1

Shire of Irwin - Long Term Financial Plan 2018-2028 DRAFT Page| 2

Document Control

Document No. Date Originated Previous Version

Revision No. Date Reviewed Adopted by Council -

Date

Adopted by Council –

Minute Ref

Rev 0 March 2019

Amendments

Details of amendments Reviewed/Amended

Date

Reference

New Format – Review of LTFP 2018-2028 March 2019


Table of Contents 1 Introduction 4

2 Our Integrated Planning Framework 4

3 Key Statistics 5

4 About the Shire 5

5 Key Services 6

6 Financial Strategies 6

6.1 Rate increases 6

6.2 Rates Modelling 6

6.3 Budget Surplus 7

6.4 Fees and Charges 7

6.5 Debt Finance 7

6.6 Cash Reserves 7

6.7 Workforce Plan 7

7 Modelling and Sensitivity Analysis 8

8 Key Assumptions 8

9 2018/19 Income and Expenditure Assumptions 8

9.1 Year 1 Income and Expenditure Assumptions 8

9.2 Years 2 to 10 Income and Expenditure Assumptions 9

9.3 10 Year Capital Plan 9

10 Risk Assessment 10

11 Financial Projections 10

12 LTFP Implementation and Review 11

13 Measuring Sustainability 12

13.1 Current Ratio 12

13.2 Operating Surplus Ratio 12

13.3 Rates Coverage Ratio 13

13.4 Debt Service Cover Ratio 13

13.5 Asset Sustainability Ratio 14

13.6 Asset Consumption Ratio 14

13.7 Asset Renewal Ratio 15

APPENDIX A - Statement of Comprehensive Income by Nature & Type

APPENDIX B - Statement of Comprehensive Income by Program

APPENDIX C - 10 Year Capital Works Program

APPENDIX D - Loan REpayment Schedule

APPENDIX E - Depreciation Schedule

APPENDIX F - Cash Reserves

APPENDIX G - Vairable Assumptions Underpinning the Plan

APPENDIX H - Key Performance Indicators


1 Introduction

The Shire of Irwin’s Long Term Financial Plan (LTFP) 2018-2028 is a high level informing strategy

that outlines the Shire’s approach to delivering infrastructure and services to the community in a

financially sustainable and affordable manner. It also demonstrates the Shire’s commitment to

managing its operations in a way that avoids unsustainable rate increases for ratepayers.

The Plan is aligned to other core planning documents by which the Shire is accountable to the

community, including the Strategic Community Plan and the Corporate Business Plan. Information

contained in other strategic plans including the Asset Management Plan and Workforce Plan, have

been used to inform the LTFP which forms the basis for preparation of the Annual Budgets.

2 Our Integrated Planning Framework

The Shire’s Integrated Planning Framework comprises of the following Plans/Programs:

Strategic Community Plan (SCP) – identifies the community’s main aspirations and priorities for

the future and outlines strategies for achieving these goals.

Corporate Plan (CP) – describes the activities we will undertake over the next four years to achieve

the agreed short-term goals and outcomes and underpin long-term aspirations.

Long Term Financial Plan (LTFP) – details the financial resources needed to enact the corporate

plan in the first four years and potential revenues and expenses for the next six years of the plan. It

serves to inform and resource all aspects of the integrated planning activities as appropriate.

Asset Management Plan (AMP) – This plan identifies and records the asset register, service levels,

activities and strategies to ensure physical assets and infrastructure are managed and maintained

over their lifecycle; and appropriately disposed of at the end of their useful life.

Integrated Workforce Plan – This plan identifies and reports on the internal capacity to meet current

and future needs of the goals and objectives of the Shire and the Community, both in capacity and

capability.

A significant component of the framework is the development of a long-term financial plan to inform

the resourcing requirements and financial capacity of a local government to achieve its stated

objectives and priorities.

The following diagram shows how the components of the Integrated Planning Framework work

together to inform and provide resources for achieving the goals of the Community Strategic Plan:


3 Key Statistics

The following table shows key statistics for the Shire of Irwin.

Distance from Perth (km) 351

Area (sq km) 2,223

Population (estimated) 3,610

Number of electors 2,700

Total Rates Levied (Budget 2017/18) $5,175,300

Total Operating Revenue (Budget 2017/18) $7,670,000

Number of FT equivalent employees 35

4 About the Shire

The Shire of Irwin includes the twin towns of Dongara and Port Denison. The latest (2017) estimated

residential population for Irwin is 3,610 people. Between the 2011 and 2016 census there has been

a continued increase in the number of people aged over 60 years living in the region and taking

advantage of the lifestyle offered in town. The Shire has experienced a growth in the resident

population of 12.2% in the decade from 2006 to 2016. Reports indicate an upward population trend

is predicted in the future with moderate growth forecast up to 2026.


The Shire of Irwin has continued to grow its tourism industry, with accommodation and food services

being the third largest industry in which local residents are employed. The highest percentage of

residents continue to work in the agriculture and fishing industry.

The Shire has continued to see growth in sporting and community groups, primarily driven by

community members in a voluntary capacity. In the twelve months prior to census night, 26% of

Shire residents spent time doing unpaid voluntary work through an organisation or group, where the

Western Australian state average for volunteering was 19%. This demonstrates a commitment by

local residents to the community in which they live.

The Shire of Irwin – A safe place to live, an exciting place to visit

and a progressive place to work.

5 Key Services

The Shire provides an extensive range of services to the community including:

Building and planning approvals

Environmental health services

Community development

Cultural events and activities

Library and tourism services

Recreation services and facilities

Housing

Community rangers

Waste collection and landfill facilities

Infrastructure - including roads, footpaths and street lighting

Parks and natural areas

6 Financial Strategies

6.1 Rate increases

The projected rates revenue increase is 3.5% (plus growth) during years 1 to 10 of the LTFP. This

represents a reduction of approximately $1.0M from the 2013-28 LTFP forecasted rates levied in

2019/20.

Reduced rate increases forecast for 2019/20 has been achieved through savings identified via

organisational restructure, reduction in staff costs and a focus on creating efficiency gains.

6.2 Rates Modelling

The proposed rates model is based on the following:

3.5% (plus growth in the rates base of 1.5%) increase in aggregate rate revenue for

2018/19.

No further concessions to be applied to residential properties.


6.3 Budget Surplus

The Shire operates on a balanced budget each year where the Net Current Assets at the end of the

financial year is effectively zero. This does not improve its financial sustainability or liquidity.

Future Councils may wish to consider this and run a budget surplus when the opportunity arises.

6.4 Fees and Charges

Discretionary Fees and Charges revenue is based upon a unit rate increase of 2.5% per annum.

6.5 Debt Finance

Borrowings will reduce from $2.36M to $1.09M from 2019 to 2029. This will place the Shire in a

strong financial position at the end of the forecast period.

This debt is for the Irwin Recreation Centre and the principal repayment becomes higher than the

interest charged from 2024/25. Throughout the ten years of this plan, $2.26M in debt is repaid.

6.6 Cash Reserves

The Shire’s drawings from cash reserves will decrease from $1.42M to $1.15M with primary growth

being due to interest earnt on the investment. Given cash reserves are designed to accumulate cash

for future capital outlays, meeting liability provisions and other allowable purposes, it is possible

during the prescribed period of the LTFP that the reserves are used as per the intent of the reserve.

It will depend on future Council decisions as to when some of these reserves are utilised.

6.7 Workforce Plan

The Shire has recently developed a draft Workforce Plan that sets out the core staffing levels,

recruitment, retention, training and resources required for the next four years as we strive to deliver

quality projects and services to the community. A well-trained, safe, respected and relevant

workforce is critical to ensuring that the Shire can efficiently undertake the tasks in accordance with

its service delivery model. The Community and Corporate strategies underpin and guide the

Workforce Plan, as it is these documents that identify the community’s needs and aspirations.

Through community consultation and engagement with Council and the Executive, we ensure an

understanding of what functions and roles are required to achieve these needs and aspirations.

The workforce plan reviews the internal and external environments and identifies the roles and

positions required, recruitment needs, management and training requirements, and addresses

emerging issues affecting our workforce. This includes internal and external factors such as budget

constraints, changing legislation, higher community expectations and continuous improvement and

compliance.

In small regional communities this is difficult to balance, and some change is inevitable. The

workforce plan ensures we are agile and flexible to meet the needs of our community. The Council

and Executive are committed to leading the organisation through a challenging environment over the

next few years as they transition from a challenging financial situation to a stable, appropriately

structured, skilled and adequately resourced workforce.


7 Modelling and Sensitivity Analysis

All modelling and analysis undertaken for the LTFP was primarily concentrated around achieving the

following:

Surplus in the Cash Flow Statement each year

Sound financial and sustainability ratios

The adopted model results in:

Cash surplus each year

Operating Surplus Ratio on target by 2019/20

Asset Sustainability Ratio on target by 2021/22

Debt Service Ratio above 3.00 by 2019/20

8 Key Assumptions

The following assumptions support the development of the new LTFP:

Years 1 to 10 - the increase per annum in aggregate rate revenue would be 3.5% (plus

growth).

The growth in the annual rate base will continue per annum to be at least 1.5% or estimated

in accordance with current growth.

Increases in revenue from rates, fees and charges should be smoothed to avoid revenue-

raising shocks to the community.

Achieving a positive accounting result from Ordinary Operating Activities.

Improving the Shire’s liquidity position over that period.

Renewing assets to maintain the associated levels of services.

Maintaining debt service levels within benchmark levels and having the capacity to borrow

when required.

Interest rates for investment funds will be a conservative 2.5% over the life of the plan,

with the dollar return adjusted according to the annual cash available for short-term

investment.

Interest rates for new borrowing will be between 4% and 6.5% over the life of the plan and

within this range consideration given to the loan term.

9 2018/19 Income and Expenditure Assumptions

9.1 Year 1 Income and Expenditure Assumptions

Year 1 of the LTFP includes the following assumptions, taking into consideration changes in yearly

budget:

The aggregate increase, in dollar terms, for rates revenue levied incorporates an equitable

increase in the differential rating categories ‘rate in the dollar’ of 3.5%.

Fees and charges are based upon the Schedule of Fees and Charges for 2018/19 and the

expected consumption of these services by the community.

The total budget for this revenue category based on confirmed grants for 2019/20.

Interest earnings calculated upon the likely cash balances during each financial yearagainst current investment rates.


Employee costs held down until 2021/22 when increase allows for 6% each year over the

period of the Plan from 2024/25.

Materials & contracts decreased in 2019/20 due to a significant amount of one-off items of

expenditure in 2018/19. Restraint is required also in 2020/21 but from 2021/22 increases

of 2% per annum are budgeted.

Utility charges for water and electricity were calculated based upon a 2.5% increase each

year over the period of the plan. New technologies may alter this, for example, affordable

solar powered street lights may be achievable over the period of the plan.

Annual fair value assessments are based on past history and deprecation of various asset

classes.

Insurance costs based on a conservative 2.5% increase each year.

9.2 Years 2 to 10 Income and Expenditure Assumptions

Years 2 to 10 in the LTFP include the following assumptions, giving regards to changes in yearly

budgets:

The aggregate increase in rates across all categories from year 2 to 10 is 3.5%, inclusive of

any GRV and UV revaluations plus a 1.5% growth in the rate base.

Operating grants and contributions based on existing recurrent funding, allowing for

indexation of 2.5% in the life of the Plan.

Non-operating grants and contributions indexed to a level of known or likely capital

contributions from other levels of government.

Fees and Charges revenue based upon a unit rate increase of 2.5% per annum, adjusted

for expected activity growth or decline.

Interest earnings are calculated upon the likely cash balances during each financial year

and allowing for marginal increases in the base cash rate.

Employee costs held down at 2018/19 levels until 2022/23, when they are indexed

annually by both the known and expected Fair Work Commission’s Local Government

Industry Award 2010 percentage increase of between 2.5% and 3% for the life of the plan.

During the life of the plan, any movements outside the Fair Work Commission’s range

reflect changes to superannuation compulsory contribution rates, incremental pay level

increases and changes to staff establishment. From 2024/25 increased staffing levels,

particularly in the works area, have seen the budgeted wage increases rise to 6% per

annum.

Materials and contracts costs indexed at 2.0% and adjusted to reflect the cyclical

expenditure on specific operational items.

Interest expenses reflect the expected borrowing rate and debt profile. Substantial

decreases in interest expenses are indicative of the retirement of debt, whilst increases

are associated with new debt.

Utility charges based on 2.5% increase per annum against expected consumption levels.

Insurance costs indexed at a conservative rate of 2.5% per annum.

9.3 10 Year Capital Plan

The following assumptions support the development of the 10 Year Capital Plan within the LTFP:

Funding for the renewal of assets increases annually on the basis of the Shire achieving

annual renewal expenditure in Year 4 of the LTFP onwards, at a level that equates to a

range of 90% to 120% of the Shire’s annual depreciation expense. The continued


allocation of funding towards the renewal of assets and funding for maintenance and

upgrades will result in a positive investment for the community into the future.

In Years 2 to 10, the nature and type of capital expenditure are only indicative figures.

However, the Capital Plan underpins the level of expenditure in relation to resource

capabilities.

In Years 2 to 10, the amount of funding sourced from Non-Operating (Capital) grants and

contributions is based on confirmed funding agreements and/or known sources of

recurrent funding. The LTFP assumes that the current level of funding will continue to be

available for the life of the plan in relation to road related grants such as Roads to Recovery

and Main Roads.

10 Risk Assessment

The Shire has an extensive road renewal program, which to a significant extent is externally funded

on a recurrent basis from Roads to Recovery and Main Roads funding. If that funding reduces or

becomes unavailable to the Shire, then the timing and scope of the associated works will require

reassessment. The new LTFP assumes that external road funding levels will remain consistent

throughout the life of the plan.

11 Financial Projections

The financial projections in the LTFP were developed in a format that conforms to the Local

Government (Financial Management) Regulations 1996 and Australian Accounting Standards. This

format was selected as it allows projections to feed into the statutory format of the Annual Budget

and key performance measures in the LTFP to be compared with Annual Budgets and Annual

Financial Reports. The statutory schedules include:

Statement of Financial Position (Balance Sheet) and Equity Statement

Statement of Comprehensive Income

Statement of Cash Flows

Rate Setting Statement

The Statement of Comprehensive Income shows what is expected to happen during the year in terms

of revenue, expenses and other adjustments from all activities. The LTFP cycles a continual positive

movement from an existing deficit position from ordinary operating activities, to a surplus position in

2018/19 that will improve financial sustainability.

The Statement of Financial Position is a snapshot of the expected financial position of the Shire at

the end of the financial year. It reports on what is expected to be owned (assets) and what is

expected to be owed (liabilities) with the bottom line ‘Net Assets’ representing the net worth. The

assets and liabilities are separated into current and non-current, where current relates to those

assets or liabilities falling due in the next 12 months. Non-current refers to assets and liabilities that

are either recoverable or which fall due over a longer period than 12 months.

The Statement of Cash Flows shows what is expected to happen during the year in terms of cash.

The net cash provided by operating activities shows how much cash is expected to remain after

paying for the services provided to the community. This can be used to fund other activities such as

capital works and infrastructure. The information in this statement assists in the assessment of the


ability to generate cash flow and meet financial commitments as they fall due, including debt

repayments. Reflective of the current ratio, the Shire maintains the ability to meet all operating and

capital commitments during the term of the LTFP.

In the LTFP, rates assessed and determined are within the accepted range of 90 -110% and reflect

cyclical movements in cash flow from year to year. The statement is supported by schedules of:

loan borrowings and repayments

capital works

cash reserves

depreciation calculations

assumptions used in the LTFP

key performance indicators (KPIs)

12 LTFP Implementation and Review

Council will consider the content of the LTFP when preparing the Annual Budget for 2019/20 and

subsequent years, with the expectation that adopted budgets will closely align with the proposals,

underlying principles and assumptions of the LTFP.

Review of the LTFP will occur each year as budgets are prepared to account for performance

information and changing circumstances. The Shire is confident that the LTFP will allow the Shire

to set priorities within its resourcing capabilities, to sustainably deliver the assets and services

required by the community in a fiscally responsible manner.


13 Measuring Sustainability

The KPIs, target rates and results measured from the LTFP are tabled below:

13.1 Current Ratio

This is a measure of a local government’s liquidity and its ability to meet its short-term financial obligation out of unrestricted current assets.

It is measured as:

Current Assets less Restricted Assets

Current Liabilities less Current Liabilities associated with Restricted Assets

Target – greater than or equal to 1.0

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 0.98 1.65 1.66 2.04 2.38 2.31 2.33 2.07 1.75 2.14

Comments:

The ratio is achieving the target range over the life of the plan after 2018/19.

13.2 Operating Surplus Ratio

This is an indicator of the extent to which revenues raised cover operational expenses only or are available for capital funding purposes. This

is measured as:

Operating Revenue less Operating Expenses Own Source Revenue (Rates)

Target – between 0% and 15%

2018/19 2019/2

0

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast -30.41%. 10.58% 0.46% 2.88% 1.40% 1.13% 0.62% 1.37% 2.92% 2.47%

Comments:

The ratio is trending positively from a negative in 2018/19 towards positive numbers thereafter, with some action still to be taken to normalise the ratio

from the adverse result in 2017/18. Reasonable results are achievable from 2019/20 onwards.


13.3 Rates Coverage Ratio

This is an indicator of a local government’s ability to cover its costs through its own tax revenue efforts. This is measured as:

Total Rates Revenue Total Expenses

Target – greater than or equal to 40%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 43.7% 50.1% 52.9% 54.2% 54.3% 54.9% 55.3% 56.2% 57.3% 57.7%

Comments: The ratio is trending upwards and reflects the mainly urban rate bases.

13.4 Debt Service Cover Ratio

This is an indication of a local government’s ability to produce enough cash to cover its debt payments. This is measured as:

Operating Revenue less Operating Expenses except Interest Expense and Depreciation Principal and Interest Expense

Target – greater than or equal to 2

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast -0.37 3.01 3.97 4.56 4.83 4.65 4.88 5.13 8.52 8.96

Comments:

The ratio is trending rapidly upwards as debt is repaid. The target is greater than or equal to 2.0 and this is achieved in 2019/20 and exceeded in

subsequent years. At this stage, no new loans are envisaged but capital requirements versus capital purchases timeframes may change that

assumption.


13.5 Asset Sustainability Ratio

This is an indicator of the extent to which assets managed by a local government are being replaced as they reach the end of their useful

lives. This is measured as:

Capital Renewal Expenditure Depreciation Expense

Target – between 90% to 110%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 58.8% 58.7% 87.3% 100.6% 98.5% 108.4% 101.5% 112.3% 117.3% 100.3%

Comments:

The ratio is trending upwards due to the renewed focus on renewal of assets, in particular, Council’s road network.

13.6 Asset Consumption Ratio

This ratio highlights the aged condition of a local government’s physical assets. This is measured as:

Depreciated Replacement Cost of Assets (Written-Down Value) Current Replacement Cost

Target – 60% or greater

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 67.8% 66.6% 65.7% 63.9% 63.0% 62.3% 60.8% 60.0% 59.5% 58.0%

Comments:

The ratio is currently above the target and only has a movement of less than 20%. It is at these levels due to real depreciation rates based on the costs

of the road network. Realistic replacement costs have been determined based on the age of assets.


13.7 Asset Renewal Ratio

This ratio indicates whether the local government has the financial capacity to fund asset renewal at continued existing service levels. This is

measured as:

Net Present Value of Planned Renewal Expenditure over 10 yrs

Value of Asset Management Plan Projections over 10 yrs

Target – between 95% and 105%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2026/27

Forecast 90.6%

Comments:

The ratio is trending towards the target for 2018/19. Subsequent ratios haven’t been calculated due to the absence of financial planning beyond 2026/27.

APPENDIX A

Statement of Comprehensive Income by Nature and Type

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000sINCOME: REVENUES FROM ORDINARY ACTIVITIESEXCLUDING PROFIT ON ASSET DISPOSAL, NON-OPERATING GRANTS, SUBSIDIES & CONTRIBUTIONS

5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029642 658 674 691 709 726 744 763 782 802

1,620 1,661 1,702 1,745 1,788 1,833 1,879 1,926 1,974 2,0230 0 0 0 0 0 0 0 0 0

124 127 130 134 137 140 144 147 151 155150 154 158 162 166 170 174 178 183 187

7,711 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196

EXPENDITURE: EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING LOSS ON ASSET DISPOSAL

(3,274) (2,669) (2,669) (2,669) (3,049) (3,426) (3,632) (3,849) (4,080) (4,325)(3,769) (3,224) (3,114) (3,176) (3,240) (3,304) (3,371) (3,438) (3,507) (3,577)

(401) (411) (421) (432) (443) (454) (465) (477) (489) (501)(3,837) (3,968) (4,008) (4,198) (4,254) (4,257) (4,464) (4,591) (4,658) (4,874)

(176) (192) (179) (165) (151) (138) (126) (112) (97) (86)(178) (182) (192) (201) (211) (222) (233) (245) (257) (270)(199) (203) (211) (220) (228) (237) (247) (257) (267) (278)

(11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910)

(4,123) (2,817) (2,424) (2,339) (2,486) (2,564) (2,661) (2,672) (2,618) (2,714)

2,549 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,91282 0 0 0 0 0 0 0 0 0

(65) 0 0 0 0 0 0 0 0 02,566 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,912

(1,557) 575 26 173 88 74 43 100 223 198

1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Total Other Comprehensive Income 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

TOTAL COMPREHENSIVE INCOME (1,556) 3,925 3,826 274 4,088 3,874 144 4,000 4,523 299

Other Comprehensive IncomeChanges in Valuation of non-current assets

Operating Grants, Subsidies & Contributions

Interest EarningsOther Revenue

Total Revenue

Employee Costs

Fees & ChargesService Charges

Profit on Asset Disposals

DepreciationInterest ExpensesInsuranceOther Expenditure

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Nature and Type

Rates

Loss on Asset Disposals

NET RESULT

Materials & ContractsUtilities

Sub-total

Sub-total

Total Expenditure

Non-Operating Grants, Subsidies & Contributions

APPENDIX B

Statement of Comprehensive Income by Program

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

INCOME: REVENUES FROM ORDINARY ACTIVITIESEXCLUDING PROFIT ON ASSET DISPOSAL AND NON-OPERATING GRANTS, SUBSIDIES & CONTRIBUTIONS

0 0 0 0 0 0 0 0 0 05,571 5,742 5,983 6,234 6,497 6,772 7,059 7,360 7,674 8,003

321 331 345 359 374 390 407 424 442 461Health 27 28 29 30 31 33 34 36 37 39Education and Welfare 18 19 19 20 21 22 23 24 25 26Housing 283 292 304 317 330 344 359 374 390 407Community Amenities 846 872 909 947 987 1,028 1,072 1,118 1,165 1,215Recreation and Culture 254 262 273 284 296 309 322 336 350 365

150 155 161 168 175 182 190 198 207 215245 253 263 274 286 298 310 324 337 352

79 81 85 88 92 96 100 104 109 1137,794 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196

EXPENDITURE: EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING LOSS ON ASSET DISPOSAL AND FINANCE COSTS

(394) (364) (362) (371) (388) (404) (421) (435) (448) (467)(196) (181) (180) (185) (193) (201) (209) (216) (223) (232)(704) (651) (647) (663) (694) (722) (752) (778) (801) (834)

Health (151) (139) (139) (142) (149) (155) (161) (167) (172) (179)Education and Welfare (119) (110) (110) (112) (117) (122) (127) (132) (135) (141)Housing (533) (493) (490) (502) (526) (547) (569) (589) (606) (632)Community Amenities (1,416) (1,309) (1,302) (1,334) (1,396) (1,452) (1,512) (1,564) (1,611) (1,678)Recreation and Culture (3,234) (2,822) (2,816) (2,899) (3,051) (3,187) (3,334) (3,463) (3,581) (3,745)

(4,182) (3,847) (3,823) (3,923) (4,110) (4,279) (4,459) (4,616) (4,757) (4,954)(537) (496) (494) (506) (529) (551) (573) (593) (611) (636)(275) (254) (253) (259) (271) (282) (294) (304) (313) (326)

(11,741) (10,666) (10,615) (10,895) (11,425) (11,900) (12,411) (12,857) (13,257) (13,824)

(3,947) (2,633) (2,245) (2,173) (2,335) (2,426) (2,535) (2,560) (2,521) (2,628)

GovernanceGeneral Purpose FundingLaw, Order, Public Safety

Sub-total

Other Property and ServicesTotal Revenue

TransportEconomic ServicesOther Property and Services

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Program

Governance

Total Expenditure

General Purpose FundingLaw, Order, Public Safety

TransportEconomic Services

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

FINANCE COSTSRecreation and Culture (176) (167) (157) (148) (138) (129) (119) (109) (97) (86)Transport 0 (25) (22) (17) (13) (9) (7) (3) 0 0

(176) (192) (179) (165) (151) (138) (126) (112) (97) (86)(11,917) (10,858) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910)

NON-OPERATING GRANTS, SUBSIDIES, CONTRIBUTIONS1,456 942 0 0 0 0 0 0 0 01,093 2,450 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,9122,549 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,912

PROFIT / (LOSS) ON DISPOSAL OF ASSETS0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 01 0 0 0 0 0 0 0 0 0

Health 0 0 0 0 0 0 0 0 0 0Education and Welfare 0 0 0 0 0 0 0 0 0 0Housing 0 0 0 0 0 0 0 0 0 0Community Amenities (1) 0 0 0 0 0 0 0 0 0Recreation and Culture 1 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

16 0 0 0 0 0 0 0 0 017 0 0 0 0 0 0 0 0 0

(1,557) 567 26 173 88 74 43 100 223 198

Other Comprehensive Income1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Total Other Comprehensive Income 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

TOTAL COMPREHENSIVE INCOME (1,556) 3,917 3,826 274 4,088 3,874 144 4,000 4,523 299

Changes in Valuation of non-current assets

NET RESULT

HousingTransport

Sub Total

TransportEconomic Services

Sub-total

Governance

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Program (continued)

Other Property and ServicesSub-total

General Purpose FundingLaw, Order, Public Safety

APPENDIX C

Ten Year Capital Works Program 2018-2028

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

DESCRIPTION OF WORK

LAND AND BUILDINGS

Land Purchased for Resale 0 0 0 0 0 0 0 0 0 0

Renewal/ Upgrade of Buildings 108 155 124 89 78 70 110 62 63 65

Replacement of Buildings 0 0 0 0 0 0 0 0 0 0

New Buildings 765 1,690 0 0 0 0 0 0 0 0

Total Land and Buildings 873 1,845 124 89 78 70 110 62 63 65

Proceeds from Sale of Land 0 0 0 0 0 0 0 0 0 0

Book Value Assets Sold 0 0 0 0 0 0 0 0 0 0

Profit / (Loss) on Sale 0 0 0 0 0 0 0 0 0 0

PLANT AND EQUIPMENTPlant & Equipment 1,034 0 645 236 92 50 190 690 759 92

Passenger Vehicles 190 288 198 254 232 254 198 288 198 254

Total Plant and Equipment 1,224 288 843 490 324 304 388 978 957 346

Proceeds of Sale 414 274 172 284 242 229 232 569 377 264



FURNITURE AND EQUIPMENTFurniture & Equipment - Irwin Recreation Centre 0 91 59 38 13 12 12 13 13 13

Furniture & Equipment 8 22 18 18 18 18 18 18 18 18

Proceeds of Sale 0 0 0 0 0 0 0 0 0 0



Shire of Irwin Long Term Financial Plan 2018 - 2028 Ten Year Capital Works Program 2018 - 2028

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

INFRASTRUCTURE - ROADS (Would be supported by detailed schedules of road projects) Regional Road Group Projects 775 640 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800

MRWA Direct Funding Projects 47 47 47 47 47 47 47 47 47 47

MRWA Black Spot Projects 0 0 0 0 0 0 0 0 0 0

Roads to Recovery Projects 174 160 160 160 160 160 160 160 160 160

R4R Road Construction Projects 0 0 0 0 0 0 0 0 0 0

Water Bores 200 0 0 0 0 0 0 0 0 0

Local Roadworks - New 0 0 0 98 33 49 54 43 49 82

Local Roadworks - Renewal 0 350 450 750 1,000 1,250 1,250 1,250 1,250 1,250

Total Infrastructure Roads 1,196 1,197 2,457 2,855 3,040 3,306 3,311 3,300 3,306 3,339

0 0 0 0 0 0 0 0

INFRASTRUCTURE - OTHER (Would be supported by detailed schedules of projects)Other Infrastructure - Parks & Gardens 57 238 171 162 144 144 119 119 94 94

Other Infrastructure - Infrastructure 111 176 312 60 60 0 0 0 0 0

Council Projects 0 150 150 500 500 750 750 1,000 1,000 1,000

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

Other Infrastructure - Works 20 12 12 12 12 12 12 12 12 12

Total Infrastructure Other 188 576 645 734 716 906 881 1,131 1,106 1,106

CAPITAL WORKS TOTAL 3,489 4,019 4,146 4,224 4,189 4,616 4,720 5,502 5,463 4,887

PROCEEDS OF SALE TOTAL 414 274 172 284 242 229 232 569 377 264

BOOK VALE ASSETS SOLD TOTAL 400 274 172 284 242 229 232 569 377 264

PROFIT ON SALE 14 0 0 0 0 0 0 0 0 0

(LOSS) ON SALE 0 0 0 0 0 0 0 0 0 0

NPV RATE 5% (BELOW)0.05NPV OF CAPITAL WORKS 34,352

Shire of Irwin Long Term Financial Plan 2018 - 2028 Ten Year Capital Works Program 2018 - 2028 (continued)

APPENDIX D

Loan Repayment Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LOAN INTEREST REPAYMENTS

Loan 93 - Recreation Centre 172 163 155 147 138 129 119 109 97 863 3 2 1

TransportLoan 98 - Plant 25 22 17 13 9 7 3

175 191 179 165 151 138 126 112 97 86

Total Self Supporting Loans

Loan 97 - Golf Club 1 1Total Self Supporting Loans 1 1Total Interest 176 192 179 165 151 138 126 112 97 86

LOAN PRINCIPAL REPAYMENTSTotal Self Supporting Loans

Loan 97 - Golf Club 8 8 8 8 4Total Self Supporting Loans 8 8 8 8 4 0 0 0 0 0

Principal Paid 8 8 8 8 4Principal Outstanding 36 28 20 12 0

Loan 93 - Recreation Centre 79 88 96 104 113 122 132 142 154 16538 39 39 40

TransportLoan 98 - Plant 120 123 127 130 134 138 142

117 247 258 271 243 256 270 284 154 165Principal Paid 117 247 258 271 243 256 270 284 154 165

2,326 2,994 2,736 2,466 2,223 1,967 1,698 1,414 1,260 1,096

Total All Loans

Principal Paid 125 255 266 279 247 256 270 284 154 165 Principal Outstanding 2,362 3,022 2,756 2,478 2,223 1,967 1,698 1,414 1,260 1,096

Principal Outstanding

Loan 96 - Tennis Court Resurfacing

Total Council Loans

Recreation & Culture

Loan 96 - Tennis Court Resurfacing

Total Council Loans

Shire of Irwin Long Term Financial Plan 2018-2028Loan Repayment Schedule (compiled from amortisation schedules)




APPENDIX E

Depreciation Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

DESCRIPTION OF ASSET CLASSES $000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LAND AND BUILDINGSLand - freehold landIndependent valuation 2017 - Level 2 5,021 5,021 5,521 5,521 5,521 6,021 6,021 6,021 6,521 6,521Land and Buildings Acquisition 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 0 500 0 0 500 0 0 500 0 0Total Land - freehold land 5,021 5,521 5,521 5,521 6,021 6,021 6,021 6,521 6,521 6,521

Land - vested in and under the control of Council Independent valuation 2017 - Level 2 3,680 3,680 4,180 4,180 4,180 4,680 4,680 4,680 5,180 5,180Fair Value Adjustment 0 500 0 0 500 0 0 500 0 0Total Land - vested in and under the control of Council 3,680 4,180 4,180 4,180 4,680 4,680 4,680 5,180 5,180 5,180

Book Value of Land 8,701 9,701 9,701 9,701 10,701 10,701 10,701 11,701 11,701 11,701

Buildings - non specialisedIndependent valuation 2017 - Level 2 2,376 2,266 2,304 2,197 2,096 2,476 2,361 2,252 2,529 2,412Additions 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 150 500 400Depreciation -110 -112 -107 -102 -120 -115 -109 -123 -117 -112 Total Buildings - specialised 2,266 2,304 2,197 2,096 2,476 2,361 2,252 2,529 2,412 2,300

Buildings - specialisedIndependent valuation 2017 - Level 2 31,921 31,941 35,090 34,528 33,943 35,320 34,702 34,134 35,492 34,863- Additions after valuation less depreciation -219 Additions 873 1,845 124 89 78 70 110 62 63 65Fair Value Adjustment 2,000 2,000 2,000Depreciation -634 -696 -685 -674 -701 -689 -678 -704 -692 -680 Total Buildings - specialised 31,941 35,090 34,528 33,943 35,320 34,702 34,134 35,492 34,863 34,248

Buildings - non specialised on land vested under the control of CouncilIndependent valuation 2017 - Level 2 1,404 1,355 1,501 1,448 1,398 1,832 1,768 1,706 2,129 2,055Additions 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 200 500 500Depreciation -49 -54 -52 -51 -66 -64 -62 -77 -74 -72 Total Buildings - specialised 1,355 1,501 1,448 1,398 1,832 1,768 1,706 2,129 2,055 1,983

Book Value of Buildings 35,562 38,894 38,174 37,437 39,627 38,830 38,092 40,149 39,329 38,531

Shire of Irwin Long Term Financial Plan 2018 - 2028Depreciation Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

PLANT AND EQUIPMENT- Independent Valuation 2016 - level 3 1,386 2,899 2,556 2,831 2,753 2,487 2,248 2,197 2,287 2,515- Additions after valuation less depreciation 1,094 0 0 0 0 0 0 0 0 0Plant & Equipment Acquisition 1,224 288 843 490 324 304 388 978 957 346Fair Value Adjustment 0 100 100 100Plant & Equipment Disposal -400 -274 -172 -284 -242 -229 -232 -569 -377 -264 Total Plant & Equipment 3,304 2,913 3,227 3,137 2,835 2,562 2,504 2,606 2,867 2,697Depreciation -405 -357 -396 -385 -347 -314 -307 -319 -351 -331 Book Value of Vehicles Plant & Equipment 2,899 2,556 2,831 2,753 2,487 2,248 2,197 2,287 2,515 2,367

FURNITURE AND EQUIPMENT- Management valuation 2016 - Level 3 483Furniture and Equipment Acquired 0 92 59 38 13 12 12 13 13 13Fair Value Adjustment 1 1 1 1Furniture and Equipment Disposed 0 0 0 0 0 0 0 0 0 0Total Furniture & Equipment 484 479 442 393 327 274 232 199 172 152Depreciation -97 -96 -88 -79 -65 -55 -46 -40 -34 -30 Book Value of Furniture & Equipment 387 383 354 314 262 219 186 159 138 121

INFRASTRUCTURE - RoadsIndependent Valaution 2017 - level 3 52,007 50,120 48,961 52,558 52,869 53,342 57,547 58,064 58,547 63,014Additions after revaluation less depreciation -683 -Additions 1,196 1,197 2,457 2,855 3,040 3,306 3,311 3,300 3,306 3,339Total Infrastructure 52,520 51,317 51,418 55,413 55,909 56,648 60,858 61,364 61,853 66,353Depreciation -2,400 -2,356 -2,361 -2,544 -2,567 -2,601 -2,794 -2,817 -2,840 -3,046 Fair Value Adjustment 3,500 3,500 4,000Book Value of Infrastructure - Roads 50,120 48,961 52,558 52,869 53,342 57,547 58,064 58,547 63,014 63,307

INFRASTRUCTURE - Other- Independent Valuation 2016 - level 3 4,175 4,085 4,364 4,990 5,359 5,688 6,474 6,886 7,506 8,364New Infrastructure Developed 188 576 645 734 716 906 881 1,131 1,106 1,106Total Infrastructure 4,363 4,661 5,009 5,724 6,075 6,594 7,355 8,017 8,612 9,470Depreciation -278 -297 -319 -365 -387 -420 -469 -511 -549 -603 Fair Value Adjustment 300 300 300Book Value of Infrastructure - Other 4,085 4,364 4,990 5,359 5,688 6,474 6,886 7,506 8,364 8,866

Total Assets 101,754 104,860 108,608 108,433 112,108 116,020 116,126 120,350 125,060 124,893

Total Depreciation -3,973 -3,968 -4,008 -4,198 -4,254 -4,257 -4,464 -4,591 -4,658 -4,874

Fair Value Adjustment 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Shire of Irwin Long Term Financial Plan 2018 - 2028Depreciation Schedule (continued)

APPENDIX F

Cash Reserves

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LEAVE ENTITLEMENT RESERVE197,800 201,800 206,845 212,016 217,317 222,749 228,318 234,026 239,877 245,874

Transfer to Reserve 4,000 5,045 5,171 5,300 5,433 5,569 5,708 5,851 5,997 6,147 - - - - - - - - - -

201,800 206,845 212,016 217,317 222,749 228,318 234,026 239,877 245,874 252,021

PLANT REPLACEMENT RESERVE87,100 107,600 110,290 113,047 115,873 118,770 121,740 124,783 127,903 131,100

Transfer to Reserve 151,700 2,690 2,757 2,826 2,897 2,969 3,043 3,120 3,198 3,278 (131,200) - - - - - - - - - 107,600 110,290 113,047 115,873 118,770 121,740 124,783 127,903 131,100 134,378

ASSET MANAGEMENT RESERVE778,700 259,300 265,783 272,427 279,238 286,219 293,374 300,709 308,226 315,932


SANITATION RESERVE89,700 1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828

Transfer to Reserve 1,800 38 38 39 40 41 42 43 45 46 (90,000) - - - - - - - - -

1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828 1,873

COASTAL MANAGEMENT RESERVE134,600 102,300 104,858 107,479 110,166 112,920 115,743 118,637 121,603 124,643


TOURISM AND AREA PROMOTION RESERVE23,700 24,200 24,805 25,425 26,061 26,712 27,380 28,065 28,766 29,485

Transfer to Reserve 500 605 620 636 652 668 685 702 719 737 - - - - - - - - - -

24,200 24,805 25,425 26,061 26,712 27,380 28,065 28,766 29,485 30,222

Transfer FromReserveBalance 30 June

Shire of Irwin Long Term Financial Plan 2018-2028Cash Reserves

Opening Balance

Transfer From ReserveBalance 30 June

Opening Balance

Opening Balance



Opening Balance

Opening Balance


Opening Balance


2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

RECREATION CENTRE EQUIPMENT RESERVE50,600 51,600 52,890 54,212 55,568 56,957 58,381 59,840 61,336 62,870

Transfer to Reserve 1,000 1,290 1,322 1,355 1,389 1,424 1,460 1,496 1,533 1,572 - - - - - - - - - -

51,600 52,890 54,212 55,568 56,957 58,381 59,840 61,336 62,870 64,441

PORT DENISON FORESHORE DEVELOPMENT RESERVE275,000 180,500 185,013 189,638 194,379 199,238 204,219 209,325 214,558 219,922


TOTAL RESERVES1,637,200 928,800 952,020 975,200 998,960 1,023,314 1,048,277 1,073,864 1,100,090 1,126,972

Transfer to Reserve 182,800 23,220 23,180 23,760 24,354 24,963 25,587 26,226 26,882 27,554 (891,200) - - - - - - - - - 928,800 952,020 975,200 998,960 1,023,314 1,048,277 1,073,864 1,100,090 1,126,972 1,154,526

Opening Balance


Shire of Irwin Long Term Financial Plan 2018-2028Cash Reserves (continued)

Opening Balance

Transfer From ReserveTotal Reserves 30 June


Opening Balance

APPENDIX G

Variable Assumptions Underpinning the Plan

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

Rates - Annual Increases 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%Rates - Growth in Rate Base 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%Operating Grants, Subsidies and Contributions 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Non-operating Grants, Subsidies, Contbns 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Fees and Charges 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Service ChargesInterest Yield 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Other revenue 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Employee Costs 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 6.0% 6.0% 6.0% 6.0%Materials and Contracts 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Utility Charges 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Depreciation on Non-current Assets (see below)Interest Expense (based on estimated borrowings) 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2%Insurance Expense 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Other Expenditure 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Average Depreciation - Buildings 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Average Depreciation - Other 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%Average Depreciation - Infrastructure Roads 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7%

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Average Depreciation - Infrastructure Other

CAPITAL ASSETS

OPERATING EXPENSES

OPERATING REVENUES

Shire of Irwin Long Term Financial Plan 2018-2028Variable Assumptions Underpinning the Plan

APPENDIX H

Key Performance Indicators

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

OPERATING SURPLUS RATIO10,260 11,425 10,820 11,233 11,664 12,113 12,581 13,069 13,577 14,108

Less Operating Exp incl interest & depreciation (11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910) 1,574- 575 26 173 88 74 43 100 223 198 5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029

-30.41% 10.58% 0.46% 2.88% 1.40% 1.13% 0.62% 1.37% 2.92% 2.47%

CURRENT RATIO2,003 2,757 2,804 3,243 3,640 3,575 3,609 3,339 3,001 3,411

Less Restricted Assets (929) (952) (975) (999) (1,023) (1,048) (1,074) (1,100) (1,127) (1,155) = Net Current Assets 1,074 1,805 1,829 2,244 2,616 2,526 2,535 2,238 1,874 2,256

1,505 1,543 1,581 1,621 1,661 1,703 1,745 1,789 1,834 1,880 (413) (446) (482) (520) (562) (607) (655) (708) (764) (826)

1,092 1,097 1,099 1,100 1,099 1,096 1,090 1,081 1,069 1,054

Ratio Target > or = to 1.0 0.98 1.65 1.66 2.04 2.38 2.31 2.33 2.07 1.75 2.14

413 446 482 520 562 607 655 708 764 826

RATES COVERAGE RATIO5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029

Divided by Total Expenses 11,834 10,850 10,794 11,060 11,576 12,038 12,537 12,969 13,354 13,910

Ratio Target > or = to 40% 43.7% 50.1% 52.9% 54.2% 54.3% 54.9% 55.3% 56.2% 57.3% 57.7%

DEBT SERVICE COVERAGE RATIO

= Operating Revenue 7,711 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196 Less Operating Expenses (11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910) Except Interest Expense and Depreciation 4,013 4,160 4,187 4,363 4,405 4,395 4,590 4,703 4,755 4,960 = OSBID (110) 1,344 1,763 2,024 1,919 1,831 1,929 2,031 2,136 2,245 Divided by Principal and Interest 301 447 445 444 398 394 396 396 251 251

Ratio Target > or = 2 -0.3652 3.0081 3.9655 4.5629 4.8259 4.6512 4.8765 5.1339 8.5242 8.9586

Operating Surplus before Interest & Depreciation

Divided by Current Liabilities lessCurrent Liabilities ass'd with Restricted Assets

Current Assets

Assumed Leave Cash Reserve same as Provision

= Net Operating SurplusDivided by Own Source Revenue (Rates)

Ratio Target - (+ve) Between 0% and 15%

Total Rates Revenue

Shire of Irwin Long Term Financial Plan 2018-2028Key Performance Indicators

Operating Revenue

= Net Current Liabilities

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

ASSET SUSTAINABILITY RATIO2,257 2,329 3,501 4,224 4,189 4,616 4,530 5,154 5,463 4,887

Divided by Depreciation Expense 3,837 3,968 4,008 4,198 4,254 4,257 4,464 4,591 4,658 4,874

Ratio Target 90% to 100% 58.8% 58.7% 87.3% 100.6% 98.5% 108.4% 101.5% 112.3% 117.3% 100.3%

ASSET CONSUMPTION RATIO101,754 104,860 108,608 108,433 112,108 116,020 116,126 120,350 125,060 124,893

Divided by Current Replacement Cost 150,000 157,369 165,315 169,640 177,829 186,245 191,066 200,468 210,231 215,219

Ratio Target 50% to 75% 67.8% 66.6% 65.7% 63.9% 63.0% 62.3% 60.8% 60.0% 59.5% 58.0%

Assumed Current Replacement Cost 150,000 New Assets Acquired at Cost - 4,019 4,146 4,224 4,189 4,616 4,720 5,502 5,463 4,887 Depreciation on New Assets - - - - - - - - - Fair Value Revaluation (6% - 3-yearly) 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101 New Current Replacement Cost 150,000 157,369 165,315 169,640 177,829 186,245 191,066 200,468 210,231 215,219

ASSET RENEWAL FUNDING RATIO31,119 - - - - - - - - -

Divided by NPV of Asset Mgment Plan Projections 34,352 - - - - - - - - -

Ratio Target 95% to 105% 90.6%

Shire of Irwin Long Term Financial Plan 2018-2028Key Performance Indicators (continued)

Capital Renewal Expenditure

Net Present Value of Planned Renewal Expenditure

Deprec'd Replace't Cost Assets (Written Down Value)

Attachment 2

26 September 2018

Mr S. Ivers Chief Executive Officer Shire of Irwin 11-13 Waldeck StreetDONGARA WA 6525

Dear Shane

Ratio Commentary Report for the Year Ended 30 June 2018

COMMENT ON RATIOS

Ratios provide useful information when compared to industry and internal benchmarks and assist in identifying trends. Whilst not conclusive in themselves, understanding ratios, their trends and how they interact is beneficial for the allocation of scarce resources and planning for the future. Information relating to the statutory ratios disclosed in the financial report is summarised in the table below and commentary provided on the following pages.

Target Ratio 1

Actual 2018

The Shire's Adjusted Ratios The

Shire's 5 Year Trend 2

5 Year Average 3

2018 2017 2016 2015 2014 Regional State

Current Ratio ≥ 1 0.92 0.93* 0.84* 2.67* 1.52* 1.48 3.18 2.22

Asset Sustainability Ratio

≥ 1.1 0.36 0.36 0.80 0.94 1.58 1.20 1.18 1.18

Debt Service Cover Ratio

≥ 10 2.43 2.45* 0.27* 4.12* 5.09* 3.22 10.62 12.41

Operating Surplus Ratio ≥ 0.15 (0.51) (0.51)* (0.35)* (0.01)* (0.09)* (0.17) (0.17) (0.11)

Own Source Revenue Coverage Ratio

≥ 0.9 0.60 0.60 0.65 0.74 0.77 0.81 0.56 0.67

Asset Consumption Ratio

≥ 0.75 0.86 0.86 0.89 0.84 0.85 0.84 0.66 0.73

Asset Renewal Funding Ratio

≥ 1.05 2.21 2.21 2.04 2.31 2.20 2.18 0.91 0.94

1Target ratios per Department of Local Government and Communities (DLGC) Guidelines except the Debt Service Ratio which is a target devised by Moore Stephens (and based on experience). For information, DLGC Guidelines indicate a target Debt Service Cover Ratio of 5.

2 The 5-year trend compares the adjusted 2018 ratio to the average of the adjusted ratios for the last 5 years

3 The average in relation to the Regional and State comparisons is a 5-year average of 2013, 2014, 2015, 2016 and 2017.

* Adjusted for “one-off” timing/ non-cash items.

Adjustments relating to 2018

Three of the ratios in the accompanying table have been adjusted for “one off” timing/non-cash items as follows:

• Operating revenue for the current year was distorted by an early payment of 2018/19 Financial AssistanceGrants (FAGs) totalling $275,411, and the early payment of 2018/19 Department of Fire and Emergency Services(DFES) totalling $11,646, both received before 30 June 2018.

• In 2017, operating revenue was also distorted by the early payment of 2017/18 FAGs totalling $285,390 and theearly payment of 2017/18 DFES totalling $9,997 received before 30 June 2017.

All distortions are considered “one-off” timing in nature and were adjusted when calculating the relevant ratios in the above table (as shown by “*”) as were relevant comparative year ratios (which had been affected by similar “one-off” items).

Regional and State 5 Year Averages

Regional and State 5 year averages have not been adjusted for “one-off” items even though these items may have been applicable in prior years as they are based on the statutory ratios which have been reported in published financial reports. However, they still provide a useful reference point as they are indicative of a trend.

Attachment 3

2

COMMENT ON RATIOS (CONTINUED)

Commentary on specific ratios

• Current Ratio

The Current Ratio is a measure of short term (unrestricted) liquidity. That is, the ability of the Shire to meet itsliabilities (obligations) as and when they fall due.

Whilst the adjusted ratio is below the target level and is trending downwards over the last five years, it has improvedin the last 12 months.

Notwithstanding this, interpretation of this ratio should be considered in the context of the Shire having a currentportion of long-term borrowings of $141,493 as at 30 June 2018. This will effectively inflate the level of currentliabilities when in fact they are not necessarily due at the point of calculation. They are due over the course of thenext twelve months and, in accordance with budgeting protocol, are budgeted to be funded from sources in thefollowing financial year i.e. 2018/2019. If they are excluded, the adjusted ratio would improve to 1.04, above thetarget level.

• Asset Sustainability Ratio

The Asset Sustainability ratio (ASR) expresses capital expenditure on renewal and replacement of existing assets as apercentage of depreciation costs. This ratio is used to identify any potential decline or improvement in assetconditions. A percentage of less than 100% on an ongoing basis indicates assets may be deteriorating at a greaterrate than spending on renewal or replacement.

This ratio has further deteriorated in the current year and is below both the Regional and State 5-year averages. Inaddition, it is trending downwards over the longer term.

This ratio has deteriorated in the current year due to a significant increase in the depreciation expense along with areduction in capital renewal and replacement expenditure.

The higher depreciation of $4 million (2017 - $2.3 million) is attributable to the revaluation of infrastructure assetsconducted during the year ended 30 June 2017 which resulted in a significantly higher depreciable asset base.Management has performed a review of the Remaining Useful Life (RUL) of infrastructure assets based on thecondition assessments used in the revaluation and consider the RUL and resulting depreciation expense to bereasonable.

As capital renewal and replacement expenditure of $1.5 million (2017 - $1.8 million) is lower than both last year andthe depreciation expense, it indicates assets are deteriorating at a greater rate than spending on renewal andreplacement.

Consideration should be given as to whether the significant structural deficit in operations mentioned in ourcomments on the Operating Surplus Ratio is a cause of the lower level of Capital renewal and replacementexpenditure or whether the current levels of Capital renewal and replacement expenditure are sufficient to maintainassets in their current condition.

Interpretation of this ratio should be considered together with the Asset Consumption Ratio (ACR) (above target at0.86) and the Asset Renewal Funding Ratio (ARFR) (above target at 2.21). The ACR indicates the current condition ofCouncil assets to be acceptable and the ARFR indicates planned capital renewal is sufficient to meet required capitalrenewal. See our comments with respect to the ARFR to assist with the level of reliance placed on the ARFR.

• Debt Service Cover Ratio

The Debt Service Cover Ratio measures the Shire’s ability to service debt out of its uncommitted or general-purposefunds available from its operations.

The ratio has improved in the current year; however, it is still below both the Regional and State 5-year averages.

As this ratio is below what we consider the “basic target” range, it does need to be considered during fundingconsiderations over the medium to longer term.

Analysis of the level of this ratio in relation to Council’s cash flows, financial position and the other ratios wouldindicate budgeted levels of the Shire’s capital investment program are not attainable at the current operating surplusand debt levels.

Notwithstanding this, improvement of the operating surplus in the short term and consideration of the effectincreased borrowings have on the Shire’s ratios over the longer term, will assist Council manage the interaction of itsratio position.

3

Commentary on specific ratios (continued)

• Operating Surplus Ratio

The Operating Surplus Ratio represents the percentage by which the operating surplus (or deficit) differs from theShire’s own source revenue which includes rates and operating grants.

This ratio has deteriorated from the previous year and is still trending downwards over the longer term and is belowthe 5-year Regional and State averages. These factors indicate a significant structural deficit in the operation of theShire.

Again, this ratio is affected by the same factor as the Asset Sustainability Ratio above, mainly due to the significantincrease in depreciation expense during the year.

Both Council and management will need to continue to improve the operating position, either via increasing revenueor by decreasing expenditure (or a combination of both). This will be dependent upon Council and management’sunderstanding of the Shire’s circumstances and the interaction between the operating surplus, the other ratios andoperations in general.

• Asset Renewal Funding Ratio

This ratio indicates whether the Shire’s planned capital renewal expenditure over the next 10 years as per itsLong Term Financial Plan (LTFP) is sufficient to meet the required capital renewal expenditure over the next 10years as per its Asset Management Plans (AMPs).

Whilst the ratio is above the target level and is trending upwards, it reflects planned capital expenditure in excessof twice the level required. The reasons noted for this disparity include:

- The AMPs being prepared at a different time to the LTFP.- The AMPs not reflecting 10 years’ worth of forecast capital expenditure; and- Different capital expenditure being included in the LTFP and the AMPs.

Management is currently in the process of updating the LTFP and AMPs. To help ensure the Asset Renewal Funding Ratio is calculated using verifiable information and is based on reasonable assumptions from adopted plans, the process of reviewing and updating the plans should be completed as soon as practicable.

As a result, the Asset Renewal funding ratio presented, may not be reflective of the true capital renewal expenditure required by the Shire.

Summary

Although a number of the ratios are below the accepted basic industry benchmark, these have improved from the previous year, with the exception of the Asset Sustainability Ratio, and the Operating Surplus Ratio. Moving forward, measures/strategies to reverse the downward trends and improve the overall level of the ratios should be considered.

We would also like to take this opportunity to stress one-off assessments of ratios at a particular point in time can only provide a snapshot of the financial position and operating situation of the Shire. As is the case with all ratios and indicators, their interpretation is much improved if they are calculated as an average over time with the relevant trends being considered.

We suggest it is prudent for Council and management to continue to monitor the financial position and ratios in future financial years as they also strive to manage the scarce resources of the Shire.

If the Shire requires, we have an extended report available which is able to compare your ratios against other Local Governments across the State and by Region. The report is also able to incorporate a selection of your peer Local Governments, whether they be of near neighbours or similar type in nature. This may be of particular relevance in your case as you are included in the Midwest region when comparison to other, more similar local governments, may be more relevant.

If you are interested in such an expanded report, please contact us.

Yours faithfully

Greg Godwin Partner Moore Stephens

Encl.


ORDINARY COUNCIL MEETING

26 March 2019

Attachment Booklet – March 2019 – Part 2 (CM)


ATTACHMENT: 9.2.1 Minutes of the Sustainable Environment Committee Meeting held

13 March 2019

Shire of Irwin AGENDA – SUSTAINABLE ENVIRONMENT COMMITTEE MEETING 13 MARCH 2019

Page 1

It should be noted that recommendations made by this Committee are not final and will be subject

to adoption (or otherwise) at a future meeting of Council.

PRESENT: Members Cr Kellie Wilson (Chairperson) Sarah Taylor Staff Brendan Jeans GUESTS: Nil APOLOGIES: Cr Sandra Gumley

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS

2. RECORD OF ATTENDANCE/APOLOGIES/LEAVE OF ABSENCE

Yvette Robb has withdrawn from the Committee due to her working role at the Shire no longer being in Regulatory Services. Yvette’s contribution to the Committee has been significant with many hours spent on tree planting days, information stall days and the Wake up to Plastics campaign.

M Yewers and J Fox were noted as absent.

Cr S Gumley sent her apologies.

3. CONFIRMATION OF MINUTES

3.1 MINUTES OF THE SUSTAINABLE ENVIRONMENT COMMITTEE MEETING HELD ON 10 OCTOBER 2018

A copy of the Minutes of the Shire of Irwin Sustainable Environment Committee Meeting held on 10 October 2018 has been provided to all Committee Members under separate cover. SUSTAINABLE ENVIRONMENT COMMITTEE RECOMMENDATION TO COUNCIL: MOVED: Cr K Wilson SECONDED: B Jeans That the Minutes of the Shire of Irwin Sustainable Environment Committee Meeting, held on 10 October 2018, be confirmed as a true and accurate recording of that meeting.

Minutes of Sustainable Environment Committee Meeting held 10 October 2018.

4. BUSINESS ARISING FROM PREVIOUS MEETING

Nil.

AGENDA FOR SUSTAINABLE ENVIRONMENT COMMITTEE MEETING

TO BE HELD AT THE SHIRE ADMINISTRATION, 11-13 WALDECK ST, DONGARA ON

WEDNESDAY, 13 MARCH 2019 COMMENCING AT 3.00PM

Shire of Irwin AGENDA – SUSTAINABLE ENVIRONMENT COMMITTEE MEETING 13 MARCH 2019

Page 2

5. PREVIOUS MEETING NEW BUSINESS ITEMS

6. REPORTS

Nil

7. GENERAL BUSINESS

7.1 Forward Planning of SEC

• Background on Council’s decision not to disband the Committee was discussed.

• K Wilson discussed options for a sub-committee/working group to involve community members into projects and aims of the Committee.

• It was agreed a working group outside of the scope of the local government committee requirements is most suitable for what is trying to be achieved.

• K Wilson will pursue for a community response on a potential working group with the intent of the Committee to provide the high level support to that working group for projects that align with the Committee’s core objectives.

8. URGENT BUSINESS APPROVED BY CHAIR OR BY COMMITTEE DECISION

9. SETTING OF FUTURE MEETING DATES

The next Shire of Irwin Sustainable Environment Committee Meeting is scheduled for 3pm on 15 May 2019.

10. CLOSURE

There being no further business, the Presiding Member declared the meeting closed at 4.02pm.

The next Shire of Irwin Sustainable Environment Committee Meeting is scheduled for 3pm on 15 May 2019.

New Attachment Booklet March 2019 · 2020. 4. 23. · 04/02/2019 all conditions cleaning vacate...

Documents

Transcript of New Attachment Booklet March 2019 · 2020. 4. 23. · 04/02/2019 all conditions cleaning vacate...