annual budget 2017-2018 - city of bunbury annual budget.pdf · annual budget 2017-18 tuesday, 18...

Annual Budget

2017-2018

Annual Budget 2017-18 Tuesday, 18 July, 2017

Annual Budget

2017-18

Table of ContentsIntroduction Page

Mayor's Introduction 4

Elected Members and Executive Leadership Team 5

Budget Certification 6

Key Statistics 7

Consultation and Engagement 7

Our Planning Framework 8

Vision, Mission and Values 9

Service Delivery 9

Executive Summary 10

Financial Summaries

Statement of Comprehensive Income by Nature and Type 21

Statement of Comprehensive Income by Program 22

Statement of Cash Flows 23

Rate Setting Statement 24

Statement of Financial Position 25

Statement of Changes in Equity 25

Statement of Net Current Assets 26

Cash Backed Reserves 28

Page 3 of 33


The annual rate increase for 2017-18 is 4.5%, fees and charges have increased by an average of 1.4% and the

annual residential rubbish collection charges will increase by $4.50 for the three bin service with no change in

commercial, except for a reduction in the organic waste charges. All properties within the City were revalued

by the State Government agency Landgate, which resulted in some properties, including Carey Park, reducing

in value and a few being valued higher, including Pelican Point.

The past three annual budgets have provided funding to meet operational costs, capital works and providing

for the future. The 2017-18 budget continues that strategy with more support to community-based

organisations than previously provided. These include increasing the operational subsidy of the Bunbury

Regional Entertainment Centre by up to $435,000; providing $20,000 for the Bunbury RSL to assist with the

100 year commemoration of the end of the First World War; $15,000 each to the Clontarf Academy and Girls

Academy; and $10,000 for continuation of the School Chaplaincy program. The annual Christmas Carnival and

Australia Day events require an investment of $412,000.

Our major projects include construction of a new works depot in Picton ($8 million) to replace the ageing

Nuytsia Avenue depot and the waste depot in McCombe Road; completion of the upgrade to the Koombana

Bay Foreshore as part of the Transforming Bunbury Waterfront project ($11.6 million), which is funded by the

State Government; and redevelopment of the Stirling Street Arts Centre with initial stages of $1 million

funded by the city and remaining stages requiring Government funding.

The budget includes $3.7 million for roadworks; $2.4 million for stormwater drainage; $800,000 for marine

wall renewal and jetty repairs in the Leschenault Inlet; and $704,000 for footpath construction, replacement

and maintenance.

The City intends borrowing $4.9 million to assist funding asset expenditure. The total loan borrowings are

within the prudent borrowing range applicable to the Local Government sector. The other main sources of

funding asset investment are Reserve Funds which past Councils have invested in knowing expenditure will be

required at some future date. The City’s finances are in a very sound position.

I commend this budget, which continues to support our community while providing for population growth.

Gary Brennan

Mayor

Mayor's Introduction to the 2017-18 Budget

Page 4 of 33


THE MAYOR

Gary Brennan

COUNCILLORS

Cr Brendan Kelly (Deputy Mayor)

Cr Murray Cook

Cr Jaysen De San Miguel

Cr Wendy Giles

Cr James Hayward

Cr Judy Jones

Cr Betty McCleary

Cr Joel McGuinness

Cr Sam Morris

Cr Michelle Steck

Cr Karen Steele

Cr Monique Warnock

ACTING CHIEF EXECUTIVE OFFICER

Malcolm Osborne

DIRECTOR CORPORATE AND COMMUNITY SERVICES

Stephanie Addison-Brown

ACTING DIRECTOR PLANNING, DEVELOPMENT AND REGULATORY SERVICES

Felicity Anderson

DIRECTOR WORKS AND SERVICES

Gavin Harris

ADMINISTRATION OFFICES

4 Stephen Street, Bunbury WA 6230

Telephone (08) 9792 7000, Facsimile (08) 9792 7184, TTY (08) 9792 7370

www.bunbury.wa.gov.au

Elected Members and Executive Leadership Team

Page 5 of 33


THE CITY OF BUNBURY COMPILED THE ANNUAL BUDGET ACCORDING TO SECTION 6.2 OF THE LOCAL

GOVERNMENT ACT 1995

I hereby certify that the budget for the;

a) Municipal Fund and the following Reserve Accounts

· ACDI Equipment Replacement Program

· Airport

· Asset Management and Renewal

· Building Restoration and Maintenance

· Canal Management

· City Arts Collection

· City of Bunbury General Parking

· College Grove Subdivision Amended Joint Venture

· Depot Construction

· Disaster Relief Fund

· Dual Use Path Upgrade Contributions

· Employee Entitlement and Insurance

· Environmental

· Hay Park Regional Athletics Track

· Heritage Building Maintenance

· Infrastructure Development

· Land Subdivision and Development

· Local Planning Policy Framework

· Meat Inspection

· Planning and Development Act Section 152

· Plant and Equipment

· Public Art

· Refuse Collection and Waste Minimisation

· Road Upgrade Contributions

· Town Planning Scheme Land Acquisition and Compensation

· Withers

b) Trust Funds

for the City of Bunbury for the 2017-18 financial year were adopted by the Council at a Special

Meeting held 25 July 2017.

G Brennan

Mayor

M Osborne

Acting Chief Executive Officer

Budget Certification

Page 6 of 33


Key Statistics

"The future is not some place we are going to but one we are creating"

"Bunbury 2030 - Your City, Your Say" was part of a collaborative community engagement and planning initiative

that underpinned the development of our Strategic Community Plan, Corporate Business Plan and Long Term

Financial Plan. This process has helped shape the future of Bunbury and surrounding communities as they

approach what is anticipated to be a continuing period of growth.

Residents of the City were asked to imagine what the places they live in could look like in the future and what

people want in their communities.

The City conducted an extensive community engagement process and a series of workshops with the outcomes

of these workshops combined with previous planning studies forming the basis for development of strategic

objectives and actions outlined in the City's strategic planning documents.

The region is poised for significant growth in coming decades and the City and its community partners are

committed to ensuring that consultation and engagement is a vibrant and successful process.

"Bunbury 2030 - Your City, Your Say" was about responding to growth opportunities in a positive manner and

connecting the region's proud past with its future.

Ongoing workshops will be undertaken during the life of our Strategic Community Plan to ensure continuing

input from all stakeholders.

Consultation and Engagement

- John H. Schaar

Page 7 of 33


The City's strategic management planning documents include:

> Strategic Community Plan

> Integrated Financial Plan (incorporating the Corporate Business Plan and Long Term Financial Plan)

> Asset Management Plan

> Workforce Plan

The following diagram depicts our strategic planning and performance management framework and describes

the linkages between all relevant planning documents.

Our Planning Framework

Page 8 of 33


Vision

Bunbury will continue to be recognised as the capital City of the South West region, with a strong and

diverse economy offering a safe, friendly and vibrant lifestyle within an attractive natural and built

environment.

Mission

We will engage with the community to ensure we provide services and facilities that improve the

quality of life of our residents and visitors.

Core Values

We will act in accordance with the following values in all of our decisions and actions:

● Leadership - empowering people to take responsibility for what they do and to strive to set an

example for others to follow

● Integrity - establishing trust through openness and honesty

● Accountability - for our actions and performance

● Respect - for others by listening, understanding and responding appropriately

● Innovation - continually improving our services and processes through creative and progressive

thinking and action

● Teamwork - communicating and working cooperatively for the mutual benefit of all

Service Delivery

It is proposed that existing service levels will be reviewed for all operational activities in the short term,

however the strategic objectives contained in our Strategic Community Plan aspire to setting appropriate

levels of service in the longer term whilst moving toward achieving annual operating surpluses each year

to fund the provision of new and replacement infrastructure.

Service levels will be reviewed on an ongoing basis and the impact of ongoing growth will be monitored

and assessed.

Page 9 of 33


The 2017-18 Annual Budget has been prepared in accordance with the requirements of the Local Government

Act 1995, the relevant Australian Accounting Standards and the Local Government Financial Management

Regulations.

This Budget is focused on maintaining the level of services that the community continues to expect.

Total budgeted expenditure for 2017-18 is $90.8 million. This comprises of $39.7 million of capital works, $48.8

million of operating expenditure (excluding depreciation) and $2.3 million for debt reduction. This is funded

from the following sources of revenue: $37.2 million from general rates, $17.0 million from operating revenues

(grants, fees and charges etc.), $12.5 million from unspent grants previously received, $7.1 million from the

disposal of assets, $5 million transferred from cash reserves, $4.9 million from new loan borrowings, $4.3

million from capital grants, $2.0 million in carried forward project funds and $0.8 million from a decrease in

surplus funds.

Rates

A proposed property rate yield increase of 4.5% is necessary to meet the operating and capital expenditure in

the 2017-18 draft budget. This includes a 1% for the upgrade and renewal of the City’s aging infrastructure

assets. The minimum rate will be $1,131, with average residential rates of $1,481. Details of rating

information are provided within the ‘Notes to and Forming Part of the Budget’.

Budget Highlights

Highlights of how our community will benefit from this year’s budget are outlined below. Some projects are

partially funded by grants or other sources of funding.

Koombana Bay Foreshore $11.6M

Works continue on Stage 1 of the $12.8M Transforming Bunbury’s Waterfront project in 2017-18; a joint effort

between the City and South West Development Commission and funded through the State Government’s

Royalties for Regions Growing Our South Initiative. Work is expected to be completed in December 2017.

Key facts about the Koombana Bay revitalisation include:

• Construction of 100 extra parking bays, taking the total to almost 400

• Improved traffic access, including left turn only from Anchorage Cove to Koombana Drive

• A pedestrian promenade along the beach

• Revamped kiosk and public amenities

• Improved beach access, including disabled access

• Amphitheatre and shaded areas

• Extensive landscaped areas overlooking the beach, including the relocation of car parks closer to

Koombana Drive

• Removal of the old train line

• Construction of an accessible playground (additional $600k funded from LotteryWest)

Construction of New Depot to Replace the Existing Depot $8M

The City will move into a new purpose-built depot in around 12 months following the $2.4M purchase of the

five hectare depot site at 10 Sutherland Way, Picton in 2016-17. The new depot will replace the 50-year-old

facility in Carey Park and will combine the City’s Works and Services and Waste operations. The Waste

department currently operates from a City-owned site in Halifax. Relocating the depot will allow the current

Carey Park site on Nuytsia Avenue to be rezoned for housing, which is currently under way as part of the

Racecourses Local Area Plan. The City will also begin the process to dispose of the waste site on McCombe

Road.

Executive Summary

Page 10 of 33


Redevelopment of the Stirling Street Arts Centre $2M

The redevelopment of the Stirling Street Arts Centre is dependent on State Government grants of $1M which

have not been confirmed. The redevelopment will consist of the following:

• 2 new studio spaces

• 1 meeting room

• New toilets

• Administration space - offices and storage

• Reception and retail display space

• New kitchen

Road Works $3.7M

Renewal and upgrade of the City’s road network including: commence the four year project to realign and

widen Ocean Drive (Hastie St to Hudson Rd), upgrade the intersection of Parade Rd and Knight St to a

roundabout, reconstruct roundabout Strickland Street and King Rd, reseal Old Coast Rd Pelican Point (Hamilton

Rd to Australind Bypass), and reconstruct pavement Halifax Dr (Monkhouse St to Shanahan Rd).

Stormwater Drainage $2.4M

Renewal and upgrade of the stormwater drainage network including construction of stormwater quality and

capacity improvements to Horseshoe Catchment East Bunbury, and renewal of the pump station Stubbs Close.

Marine $800K

Renewal of foreshore marine walls on the Leschenault Inlet and jetty repairs.

Footpath Construction, Replacement and Maintenance $704K

The footpath program continues in 2017-18 including replacing and developing new dual-use paths throughout

the City.

Landscape, Parks, Gardens and Entry Statements $436K

The budget includes $436K to improve the City’s Landscape, Parks, Gardens and Entry Statements.

Waste Operations Better Bins Grant - Waste Complementary Measure Plan $412K

This project is funded by the Waste Authority through the Waste Avoidance and Resource Recovery Account

and will see $412K spent over the next two years. Some of the areas that will be targeted include:

• City website update

• Training and education

• Kitchen caddies for households

• Ongoing Radio, newspaper and social media advertising to increase community awareness and

knowledge of correct use of the 3-Bin system

• Development of short video clips for use on social media

• Development and printing of information packs for new residents

• Development of information packs for new mothers

• School based training

• Resident Information seminars

• Online waste education program development

• App research and development for phones

• Static information bays in our public buildings

This will build on the existing work done to date. The key aim of the project is to maintain minimal

contamination and increase the diversion of waste from landfill towards improved public health, environmental

and financial outcomes for the community.

Executive Summary - continued

Page 11 of 33


Community Projects

Include:

• Replacement of playground equipment and upgrade to Kelly Park $318K

• Additional Family and Accessible Change Facilities at the South West Sports Centre $295K

• Replace Bunbury Wildlife Park volunteer and staff facilities, animal hospital, toilets, feed store and

preparation area $214K

• Remove liner and tile Leisure Pool and the South West Sports Centre $195K

• Construct an accessible ramp to the Back Beach $160K

• Landscaping adjacent to the Bunbury City Surf Life Saving Club $160K

• Implement Withers Local Area Plan Strategies $150K

• Reseal Soccer Club car park Hay Park $100K

• Upgrade facilities to progress towards the goal of becoming the Most Accessible Regional City in

Australia $100K

• Community Grants Funding $95K

• Support Club Development $80K

• Support Koombana Bay Sailing Club CSRFF application to refurbish male toilets and change room

facilities $50K

• Develop a Greater Bunbury Youth Strategy Plan $40K

• Urban Food Garden $40K

• Reconciliation Action Plan initiatives $30K

• Minor Community Grants $10K

• Conduct Grandfamilies Fun Day $6K

Art, Culture and Events

Include:

• Conduct Christmas Carnival and Australia Day events $412K

• Events Grants $285K

• Seed funding for events $60K

• Arts and Culture grants $20K

• Quick Response Place-Making grants $20K

• Bunbury Regional Entertainment Centre Fly-Tower and equipment $519K

• Support Bunbury Regional Entertainment Centre $435K

• Support the Stirling Street Arts Centre (operating and capital) $86K

• Support King Cottage Museum $31K

• Support ANZAC Day Working Group $20K

• Support Bunbury Band $6K

Loan Borrowing

This Budget proposes to borrow $4.9M for the following projects: construction of a new depot ($3M),

development of a water playground ($1.0M) and the redevelopment of the Stirling Street Arts Centre ($900K).

Loan details are outlined in the ‘Notes to and Forming Part of the Budget’.

Executive Summary - continued

Page 12 of 33


40,000

44,000

48,000

52,000

56,000

60,000

64,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Annual operating income ($ 000's)

Base operating income includes rate income, grants and subsidies, contributions, reimbursement and donations, fees and charges,

interest received and other revenue

Non-operating income is excluded from this total

Do

lla

rs (

$0

00

s)

Current Budget Actual

44,148

45,359

)(1,211

46,128

47,019

)(891

48,655

48,109

545

50,351

52,950

)(2,599

52,280

53,599

)(1,318

53,803

56,483

)(2,680

53,973

17/1816/1715/1614/1513/1412/1311/12

Current Budget

Actual

Variance

44,000

48,000

52,000

56,000

60,000

64,000

68,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Annual operating expenditure ($ 000's)

Annual operating expenditure includes employee costs, materials and contracts, utilities, insurance, depreciation, interest on loan

borrowings and other expenses

Do

lla

rs (

$0

00

s)


46,853

46,288

565

50,897

48,964

1,933

56,070

53,557

2,513

57,499

53,043

4,456

58,426

53,363

5,063

58,881

53,723

5,158

60,570

17/1816/1715/1614/1513/1412/1311/12

Variance

Actual

Current Budget

Page 13 of 33


$7,073,729

Asset Disposal

Income

$4,353,995

Capital Grant Income

$876,526

Contributions

Reimbursements

and Donations

$13,124,989

Fees and Charges

$773,611Interest

Earnings

$1,608,315Operating

Grants and

Subsidies

$321,108

Other Revenue

$37,268,337

Rates

Income Sources$65,400,610

10.82%

Asset Disposal

Income

Capital Grant Income

ContributionsReimbursements and

Donations

20.07%

Fees and Charges

1.18%

Interest Earnings2.46%

Operating Grants and

Subsidies

0.49%

Other Revenue

56.98%

Rates

Income SourcesPercentage

Page 14 of 33

6.66%

1.34%


$1,894,076

Consultants

$11,701,546

Depreciation on

Non Current

Assets

$25,693,473

Employee Costs

$587,239

Insurance

Expenses

$721,354

Interest Expenses

Materials and

$14,143,995

Contracts

Other Expenses

$3,126,659

Utility Charges

Operating Costs$60,570,079

3.13%

Consultants

19.32%

Depreciation on

Non Current

Assets

42.42%

Employee Costs

0.97%

Insurance

Expenses

1.19%

Interest Expenses

23.35%

Materials and

Contracts

4.46%

Other Expenses

5.16%

Utility Charges

Operating CostsPercentage

Page 15 of 33

$2,701,737


-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Annual operating surplus (deficit) ($ 000's)

Operating surplus (deficit) measures the financial sustainability of the Council, and is determined by operating revenue less operating

expenditure (excludes non-operating income and expenditure such as capital grants and contributions)

A surplus indicates that the Council has sufficient funds to meet its asset management obligations and has the capacity to repay loan

borrowings without impacting its long term financial sustainability

A deficit indicates that the Council is generating insufficient funds for asset renewal and the repayment of its debt obligations

Do

lla

rs (

$0

00

s)


)(2,705

)(929

)(1,776

)(4,769

)(1,945

)(2,824

)(7,415

)(5,447

)(1,968

)(7,148

)(93

)(7,055

)(6,146

236

)(6,381

)(5,078

2,760

)(7,838

)(6,597

17/1816/1715/1614/1513/1412/1311/12

Variance

Actual

Current Budget

8,000

9,000

10,000

11,000

12,000

13,000

14,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Operating expenditure - depreciation ($ 000's)

Annual operating expenses for depreciation

Do

lla

rs (

$0

00

s)


8,628

9,230

)(602

10,131

9,713

418

12,627

10,840

1,787

12,895

10,948

1,947

11,589

11,589

0

11,137

11,137

0

11,702

17/1816/1715/1614/1513/1412/1311/12

Variance

Actual

Current Budget

Page 16 of 33


8,000

10,000

12,000

14,000

16,000

18,000

20,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Loan liabilities ($ 000's)

Total current and non-current loan liabilities, including self supporting loans

Do

lla

rs (

$0

00

s)


10,237

9,467

770

11,348

11,348

0

15,888

14,481

1,407

17,846

17,846

0

16,925

16,280

644

16,355

16,435

)(80

17,951

17/1816/1715/1614/1513/1412/1311/12

Variance

Actual

Current Budget

0

4,000

8,000

12,000

16,000

20,000

24,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Reserves ($ 000's)

Total cash backed reserves

Do

lla

rs (

$)


10,599

6,628

3,970

9,135

3,462

5,673

6,751

4,681

2,071

7,332

7,298

35

15,487

16,816

)(1,329

16,532

21,274

)(4,743

16,332

17/1816/1715/1614/1513/1412/1311/12

Variance

Actual

Current Budget

Page 17 of 33


0

10,000

20,000

30,000

40,000

50,000

60,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18

Annual capital expenditure ($ 000's)

Capital expenditure on capital new (expansion), capital renewal, and capital upgrade projects

Do

lla

rs (

$0

00

s)


36,695

12,830

23,865

40,450

34,904

5,546

27,681

22,215

5,466

25,558

12,297

13,262

17,169

12,775

4,395

30,058

14,269

15,790

26,149

17/1816/1715/1614/1513/1412/1311/12

Current Budget

Actual

Variance

Capital Expenditure by Asset Class

Page 18 of 33


$25,240,499Capital New

$9,412,069

Capital Renewal

$5,083,710

Capital

Upgrade

Capital Costs$39,736,278

63.5%

Capital New

23.7%

Capital Renewal

12.8%

Capital

Upgrade

Capital CostsPercentage

Page 19 of 33


Financial Statements

Page 20 of 33


Note

Statement of Comprehensive Income

by Nature and Type

Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

Operating Revenue

35,646,231 35,659,228 37,268,3373Rates

2,333,473 3,388,161 1,608,315Operating Grants and Subsidies

745,753 1,289,039 876,526Contributions Reimbursements and Donations

13,938,121 14,547,399 13,124,9894Fees and Charges

782,421 1,254,261 773,61110Interest Earnings

356,671 344,639 321,108Other Revenue

53,802,670 56,482,727 53,972,886

Operating Expenditure

)(1,658,078 )(1,220,759 )(1,894,076Consultants

)(25,033,532 )(23,618,727 )(25,693,473Employee Costs

)(66,620 0 0Contract Employment Expenses

)(13,126,689 )(11,428,470 )(14,143,995Materials and Contracts

)(11,136,744 )(11,136,744 )(11,701,5466Depreciation on Non Current Assets

)(812,278 )(781,451 )(721,35411Interest Expenses

)(2,940,482 )(2,598,514 )(3,126,659Utility Charges

)(747,420 )(727,917 )(587,239Insurance Expenses

)(3,358,733 )(2,210,126 )(2,701,737Other Expenses

)(58,880,576 )(53,722,708 )(60,570,079

Operating Surplus )(5,077,906 2,760,019 )(6,597,193

Non Operating Revenue and Expenses

12,338,323 3,907,293 4,353,995Capital Grant Income

0 174,334 0Interest on Capital Grant

5,452,410 1,070,325 7,073,7295Proceeds from Asset Disposals

)(1,665,257 )(648,286 )(1,314,1235Asset Disposal Values

16,125,476 4,503,666 10,113,601

Net Result 11,047,570 3,516,4087,263,685

Other Comprehensive Income

Changes on revaluation of non-current assets

0 0 0

11,047,570 7,263,685 3,516,408Total Comprehensive Income

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

Note: Operating Grants and Subsidies. In 2016-17, the City received an advance payment for the 2017-18 Financial

Assistance Grants of $821K

Page 21 of 33


Statement of Comprehensive Income

by Program

Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

Operating Revenue (Refer Notes 1, 2, 3, 4 & 10)

38,052,894 39,069,833 38,824,393General Purpose Funding

544,999 962,689 562,450Governance

345,470 369,986 368,842Law, Order and Public Safety

418,703 464,389 408,983Health

23,500 28,768 23,553Education and Welfare

6,100,914 6,427,324 6,272,986Community Amenities

4,521,517 5,083,611 4,527,238Recreation and Culture

2,172,093 2,140,801 1,143,286Transport

354,913 394,196 427,214Economic Services

1,267,667 1,541,130 1,413,941Other Property and Services

53,802,670 56,482,727 53,972,886

Operating Expenditure (Refer Notes 1, 2, 5, 6, 8 & 9)

)(1,774,187 )(1,130,364 )(1,231,194General Purpose Funding

)(3,953,194 )(3,696,095 )(4,005,603Governance

)(1,360,910 )(1,244,116 )(1,398,177Law, Order and Public Safety

)(1,105,591 )(1,029,206 )(1,105,773Health

)(296,165 )(360,945 )(416,422Education and Welfare

)(8,465,288 )(7,303,041 )(8,906,520Community Amenities

)(15,616,981 )(13,844,045 )(15,800,130Recreation and Culture

)(7,943,653 )(7,332,674 )(7,743,122Transport

)(1,138,447 )(983,626 )(1,503,391Economic Services

)(16,413,882 )(16,017,145 )(17,738,393Other Property and Services

)(58,068,298 )(52,941,257 )(59,848,725

Finance Costs (Refer Note 11)

)(68,727 )(67,627 )(58,554Community Amenities

)(319,184 )(312,488 )(248,129Recreation and Culture

)(172,274 )(162,994 )(163,274Transport

)(252,093 )(238,342 )(251,397Other Property and Services

)(812,278 )(781,451 )(721,354

Non Operating Income and Expenditure

334,370 336,802 163,425Law, Order and Public Safety

566,550 314,192 1,014,800Community Amenities

2,000 29,095 95,000Recreation and Culture

4,577,510 3,139,086 2,579,170Transport

10,645,046 684,491 6,261,206Other Property and Services

16,125,476 4,503,666 10,113,601

11,047,570 7,263,685 3,516,408Net Result

Other Comprehensive Income

Changes on revaluation of non-current assets

0 0 0

11,047,570 7,263,685 3,516,408Total Comprehensive Income


Page 22 of 33


Note

Statement of Cash Flows Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

Cash Flows from Operating Activities

Receipts

35,646,231 35,659,228 37,268,3373Rates

2,333,473 3,388,161 1,608,315Operating Grants and Subsidies

745,753 1,289,039 876,526Contributions Reimbursements and Donations

13,938,121 14,547,399 13,124,9894Fees and Charges

782,421 1,261,594 773,61110Interest Earnings

356,671 337,306 321,108Other Revenue

53,802,670 56,482,727 53,972,886

Payments

)(24,521,425 )(23,508,049 )(25,155,140Employee Costs (Operating Only)


)(2,940,482 )(2,598,514 )(3,126,659Utilities

)(747,420 )(727,917 )(587,239Insurance

)(812,278 )(781,451 )(721,35411Interest Expense

)(3,358,733 )(2,210,126 )(2,701,737Other Expenses

)(47,231,725 )(42,475,286 )(48,330,200

6,570,945 14,007,441 5,642,686Net cash provided by (used in) operating activities 13

Cash Flows from Investing Activities

Capital Receipts

12,338,323 3,907,293 4,353,995 Grants and Contributions for the Development of Assets

174,334 Interest Earnings on Capital Grants and Contributions

5,452,410 1,070,325 7,073,7295Proceeds from the Sale Plant and Vehicles

17,790,733 5,151,952 11,427,724

Capital Payments

)(30,058,405 )(14,283,054 )(39,736,2787Acquisition of Assets

)(30,058,405 )(14,283,054 )(39,736,278

)(12,267,672 )(9,131,102 )(28,308,554Net cash provided by (used in) investing activities

Cash Flows from Financing Activities

Financing

2,305,520 1,353,000 4,900,00015Proceeds from New Debentures

)(2,230,770 )(2,237,766 )(2,351,46315Repayment of Debentures

192,261 117,528 198,25015Proceeds from Self Supporting Loans

267,011 (767,238) 2,746,787Net cash provided by (used in) financing activities

)(5,429,716 4,109,101 )(19,919,081Net increase (decrease) in cash held

39,022,113Cash at the beginning of the year 39,022,113 43,131,214

Cash and cash equivalents at the end of the year 43,131,21433,592,397 23,212,13312


Page 23 of 33


Note

Rate Setting Statement Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

3,271,7092,321,428Estimated Surplus (Deficit) July 1 Brought Forward 2,151,889

Revenue (excluding rates)

43,869 44,076 45,861Rates - Specified Area 3

2,333,473 3,388,161 1,608,315Grants and Subsidies - Operating

745,753 1,289,039 876,526Contributions Reimbursements and Donation

13,938,121 14,547,399 13,124,989Fees and Charges 4

782,421 1,254,261 773,611Interest Received 10

356,671 344,639 321,108Other Revenue

16,750,41020,867,57518,200,308

Less Expenditure

)(25,033,532 )(23,618,727 )(25,693,473Employee Costs


)(11,136,744 )(11,136,744 )(11,701,546Depreciation 6

)(812,278 )(781,451 )(721,354Interest Expense 11

)(2,940,482 )(2,598,514 )(3,126,659Utilities

)(747,420 )(727,917 )(587,239Insurance

)(3,358,733 )(2,210,126 )(2,701,737Other Expense

)(60,570,079)(53,722,708)(58,880,576

)(40,680,268 )(32,855,133 )(43,819,669Net Operating Result Excluding Rates

Non Cash Revenue and Expenditure

Depreciation 11,136,744 11,701,54611,136,7446

Self Supporting Loan )(80,000

11,136,744 11,056,744 11,701,546

Movement in Non-Current Assets and Liabilities

Repayment of Deferred Debtors

62,100 62,100Adjustment Non Current Provisions and Accruals 62,100

62,10062,100 62,100

Net Non Cash and Movements 11,763,64611,118,84411,198,844

Investing Activities

12,338,323 3,907,293 4,353,995Grants and Contributions for the Development of Assets

5,452,410 1,070,325 7,073,729Proceeds on Disposal of Assets 5

174,334Interest Received on Capital Grants

)(129,142 )(292,303 )(304,807Acquisition of Assets - Employee Costs 7

)(29,833,643 )(13,747,261 )(39,324,020Acquisition of Assets - Material and Contracts 7

)(95,620 )(243,490 )(107,451Acquisition of Assets - Cost Allocations 7

)(28,308,554)(9,131,102)(12,267,672

Financing Activities

192,261 197,528 198,250Loan Repayments - Self Supporting 15

2,305,520 1,353,000 4,900,000Proceeds from New Debentures 15

4,133,418 )(3,110,242 17,520,947Transfers from Restricted Cash

)(2,230,770 )(2,237,766 )(2,351,463Repayment of Debentures 15

20,267,734)(3,797,4804,400,429

)(7,867,243 )(12,928,582 )(8,040,820Net Investing and Financing Activities

Budgeted deficiency before general rates )(36,825,134)(32,343,443)(35,198,878

Estimated amount to be raised from general rates 35,602,362 35,615,152 37,222,4763

Estimated Surplus (Deficit) June 30 Carried Forward 405,584 3,271,709 397,342


Page 24 of 33


Statement of Financial Position Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

Equity

)(231,934,567 )(240,392,929Retained Surplus

)(21,274,312 )(16,332,358Reserves - Cash Backed

)(327,606,494 )(327,606,494Reserves - Asset Revaluation

)(580,815,372 )(584,331,780TOTAL EQUITY

Current Assets

8,885,316 6,487,182Cash and Cash Equivalents - Unrestricted

34,245,897 16,724,950Cash and Cash Equivalents - Restricted

2,692,818 2,692,818Trade and Other Receivables

52,290 52,290Inventories

45,876,321 25,957,240

Non Current Assets

1,678,116 1,479,866Other Non Current Receivables

240,515,248 233,554,924Property Plant and Equipment

299,288,608 293,233,263Infrastructure

17,504,515 57,240,793Work in Progress

558,986,486 585,508,845

Current Liabilities

)(4,634,289 )(4,634,289Trade and Other Payables

)(3,511,418 )(3,987,651Current Provisions

)(2,223,631 )(2,277,765Current Portion Long Term Borrowings

)(10,369,338 )(10,899,705

Non Current Liabilities

)(16,034 )(16,034Other Non Current Payables

)(489,969 )(552,069Non Current Provisions

)(13,172,095 )(15,666,498Long Term Borrowings

)(13,678,097 )(16,234,600

580,815,372 584,331,780TOTAL NET ASSETS

Statement of Changes in Equity Original Budget

2016-17

Forecast

2016-17

Draft Budget

2017-18

Retained Surplus

Balance 1 July 229,413,598 231,934,567

Transfer (to) / from Cash Backed Reserves )(4,742,716 4,941,954

Net Operating Result 7,263,685 3,516,408

231,934,567Balance 30 June 240,392,929

Reserves Cash Backed

Balance 1 July 16,531,596 21,274,312

Transfer to / (from) Cash Backed Reserves 4,742,716 )(4,941,954

Balance 30 June 21,274,312 16,332,358

Reserves Asset Revaluation

Balance 1 July 327,606,494 327,606,494

Transfer to / (from) Asset Revaluation Reserve

Balance 30 June 327,606,494 327,606,494

Equity Balance 30 June 580,815,372 584,331,780

Page 25 of 33


Statement of Net Current Assets Opening Balance

2016-17

Forecast

2016-17

Draft Budget

2017-18

Current Assets

Cash Unrestricted 5,782,438 8,885,316 6,487,182

Cash Restricted 27,306,514 34,245,897 16,724,950

Trade and Other Receivables 2,364,786 2,692,818 2,692,818

Inventories 62,066 52,290 52,290

35,515,804 45,876,321 25,957,240

Current Liabilities

Provisions (3,951,185) )(3,511,418 )(3,987,651

Trade and Other Payables (3,687,585) )(4,634,289 )(4,634,289

(7,638,770) )(8,145,706 )(8,621,939

27,877,034 37,730,615 17,335,301NET CURRENT ASSET POSITION

LessCash Restricted )(16,724,950)(34,245,897(27,306,514)

Receivables )(199,663(164,936) )(218,160

)(16,943,110(27,471,450) )(34,464,057

ESTIMATED SURPLUS (DEFICIENCY) C/FWD 3,271,708 397,342405,584

The estimated surplus (deficiency) c/fwd in the 2016-17 forecast column represents the surplus (deficit) brought forward

as at 1 July 2017.

The estimated surplus (deficiency) c/fwd in the 2017-18 budget column represents the surplus (deficit) carried forward as

at 30 June 2018.

Page 26 of 33


Cash Backed Reserves

Page 27 of 33


Cash Backed Reserves Forecast Draft Budget

2017-18

Opening Balance Current Budget

2016-172016-17

ACDI Equipment Replacement ProgramPurpose: For the purchase and upgrade of equipment used by Australian Centre for Digital Innovation

Opening Balance 587,895 660,417587,895 587,895

Transfers to Reserves (Based on Operating Surplus) 72,522 91,67081,300

Transfers to Reserves (Specified Amount)

Transfers from Reserves (Operating and Capital Projects)

Transfers from Reserves (Loan Principal Repayments)

Closing Balance 660,417 752,087669,195

AirportPurpose: To receipt funds from airport leases for the future provision of asset management and expansion projects at

the airport

Opening Balance 31,178 70,03231,178 31,178



Transfers from Reserves (Operating and Capital Projects) )(54,315 )(38,320)(108,463

Transfers from Reserves (Loan Principal Repayments) )(30,593 )(30,445)(46,501

Closing Balance 70,032 125,0530

Asset Management and RenewalPurpose: To provide funding for future asset management / renewal programs / projects

Opening Balance 4,447,972 7,040,0424,447,972 4,447,972

Transfers to Reserves (Based on Operating Surplus) 3,095,560 100,000600,000

Transfers to Reserves (Specified Amount) 665,981 163,42584,848

Transfers from Reserves (Operating and Capital Projects) )(1,169,471 )(4,533,786)(1,957,318


Closing Balance 7,040,042 2,769,6813,175,502

Building Restoration and MaintenancePurpose: For the purchase and upgrade of Council Buildings

Opening Balance 238,254 457,254238,254 238,254

Transfers to Reserves (Based on Operating Surplus)

Transfers to Reserves (Specified Amount) 219,000219,000

Transfers from Reserves (Operating and Capital Projects) )(104,074)(104,074


Closing Balance 457,254 353,180353,180

Bunbury Museum and Heritage CentrePurpose: To provide funding for the Museum

Opening Balance 62,438 062,438 62,438





Closing Balance 0 011,642

Page 28 of 33



2017-18


2016-172016-17

Canal ManagementPurpose: To receipt specified area rating from the Pelican Point Canal Development to provide for the ongoing

management and maintenance of the Canal residential and commercial area

Opening Balance 444,146 465,932444,146 444,146





Closing Balance 465,932 511,793456,015

City Arts CollectionPurpose: For the purchase and upgrade of Council's Art Collection

Opening Balance 38,984 42,48438,984 38,984


Transfers to Reserves (Specified Amount) 3,500



Closing Balance 42,484 42,48438,984

City of Bunbury General ParkingPurpose: To fund motor vehicle parking requirements within the City of Bunbury and promotion of the CBD

Opening Balance 2,083,926 2,057,8042,083,926 2,083,926

Transfers to Reserves (Based on Operating Surplus) 885,748 )(170,566744,917

Transfers to Reserves (Specified Amount) 66,662 6,423,48665,195


Transfers from Reserves (Loan Principal Repayments) )(219,103 )(218,049)(218,209

Closing Balance 2,057,804 7,614,6351,681,525

College Grove Subdivision Amended Joint VenturePurpose: To provide funding for the development of land relating to the amended College Grove joint venture

Opening Balance 32,818 33,81232,818 32,818

Transfers to Reserves (Based on Operating Surplus) 903 85029,374

Transfers to Reserves (Specified Amount) 91




Depot ConstructionPurpose: To provide funding for the purpose of constructing a new depot

Opening Balance 1,585,182 2,992,6821,585,182 1,585,182

Transfers to Reserves (Based on Operating Surplus) 2,120,00060,000


Transfers from Reserves (Operating and Capital Projects) )(712,500 )(2,992,682)(1,585,182


Closing Balance 2,992,682 060,000

Page 29 of 33



2017-18


2016-172016-17

Disaster Relief FundPurpose: To provide relief of personal hardship and distress arising from natural disasters

Opening Balance 100,000 100,000100,000 100,000





Closing Balance 100,000 100,000100,000

Dual Use Path Upgrade ContributionsPurpose: To receipt funds received from Council's subdivision conditions for the future provision of dual use path

improvements and path management measures to benefit path infrastructure

Opening Balance 59,746 59,74659,746 59,746






Employee Entitlements and InsurancePurpose: To provide future funds for employee related entitlements and insurance liabilities

Opening Balance 764,562 979,020764,562 764,562

Transfers to Reserves (Based on Operating Surplus) 124,45866,829




Closing Balance 979,020 972,020817,391

EnvironmentalPurpose: For the future provision of environmental management and associated projects

Opening Balance 195,057 189,707195,057 195,057





Closing Balance 189,707 45,957118,957

Hay Park Regional Athletics TrackPurpose: To retain funds for the future replacement of the regional athletics track

Opening Balance 300,665 370,665300,665 300,665





Closing Balance 370,665 440,665370,665

Page 30 of 33



2017-18


2016-172016-17

Heritage Building MaintenancePurpose: To provide funding for the maintenance of heritage buildings

Opening Balance 27,500 27,50027,500 27,500






Infrastructure DevelopmentPurpose: To receipt funds specifically raised from the annual rates levied for the renewal and upgrade of existing

infrastructure assets

Opening Balance 0 153,3330 0





Closing Balance 153,333 128,35384,520

Land Subdivision and DevelopmentPurpose: To provide funding for land subdivision development

Opening Balance 340,723 340,723340,723 340,723





Closing Balance 340,723 340,723340,723

Local Planning Policy FrameworkPurpose: To provide funding for Local Planning Policy Framework

Opening Balance 50,000 100,00050,000 50,000



Transfers from Reserves (Operating and Capital Projects) )(49,825


Closing Balance 100,000 100,175100,000

Meat InspectionPurpose: To make funds available to enable the monitoring of annual meat inspection income and expenditure to

ensure as far as possible the service is carried out on a self-balancing basis

Opening Balance 73,983 112,63673,983 73,983

Transfers to Reserves (Based on Operating Surplus) 38,653 )(3,83316,724




Closing Balance 112,636 108,80390,707

Page 31 of 33



2017-18


2016-172016-17

Planning and Development Act Section 152Purpose: To receipt income from the sale of Planning and Development Act Section 152 Public Open Space Reserves to

fund other public open space developments in accordance with the Planning and Development Act

Opening Balance 456,222 541,325456,222 456,222

Transfers to Reserves (Based on Operating Surplus) 85,103




Closing Balance 541,325 541,325456,222

Plant and EquipmentPurpose: To provide for the purchase of plant and equipment, including office furniture, office equipment, computer

hardware and software

Opening Balance 323,327 516,827323,327 323,327





Closing Balance 516,827 286,259323,327

Public ArtPurpose: To provide funding for the installation of artworks in public spaces

Opening Balance 135,333 135,333135,333 135,333





Closing Balance 135,333 35,333135,333

Refuse Collection and Waste MinimisationPurpose: To receipt any annual surplus from Council's waste collection / minimisation program to provide future

funding for Council's sanitation program

Opening Balance 3,544,134 3,212,8553,544,134 3,544,134



Transfers from Reserves (Operating and Capital Projects) )(1,121,921 )(3,289,963)(1,921,985

Transfers from Reserves (Loan Principal Repayments) )(93,916

Closing Balance 3,212,855 443,9842,402,241

Regional MuseumPurpose: To fund Council's contribution toward the establishment of a regional museum

Opening Balance 3,442 03,442 3,442





Closing Balance 0 00

Page 32 of 33



2017-18


2016-172016-17

Road Upgrade ContributionsPurpose: To receipt funds received from Council's subdivision conditions for the future provision of road improvements

and traffic management measures to benefit road infrastructure

Opening Balance 153,730 171,704153,730 153,730

Transfers to Reserves (Based on Operating Surplus) 17,974




Closing Balance 171,704 171,704153,730

Town Planning Scheme Land Acquisition and CompensationPurpose: For land acquisitions and compensation payable in respect to the implementation of Council's Town Planning

schemes

Opening Balance 135,000 132,505135,000 135,000





Closing Balance 132,505 122,780122,780

WithersPurpose: To provide funding for the implementation of the Withers Action Plan

Opening Balance 315,379 309,974315,379 315,379





Closing Balance 309,974 223,45658,000

16,332,35821,274,31212,250,07716,531,596TOTAL RESERVES

All of the above reserve accounts are to be supported by money held in financial institutions.

Page 33 of 33

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