city of fremantle annual report 2014 15 · 2014–15 has seen the city take many steps towards our...

City of Fremantle

Annual Report

2014–15

TABLE OF CONTENTS

Table of contents .......................................................................................................... 2

Fremantle profile ........................................................................................................... 3

Mayors report ................................................................................................................ 5

Elected members .......................................................................................................... 9

Council/committee meeting attendance 2014–15 ....................................................... 13

CEO’s report ............................................................................................................... 15

City of Fremantle organisational structure .................................................................. 18

Directors 2014–15 ....................................................................................................... 20

Community development highlights ............................................................................ 23

City business highlights .............................................................................................. 32

Strategic Planning and projects highlights .................................................................. 37

Infrastructure and project delivery highlights ............................................................... 40

Statutory reporting ...................................................................................................... 46

Disability access and inclusion plan (DAIP) ................................................................ 51

FREMANTLE PROFILE

Fremantle is an historic port city located at the mouth of the Swan River, south–west of Perth,

the state capital of Western Australia.

Established in 1829 as the port for the new Swan River Colony, Fremantle was Western

Australia’s major centre for much of its early history. As the first port of call for ships crossing

the Indian Ocean from Great Britain and Europe, from colonial times and through the 20th

century it was a gateway for migrants coming to Australia. Today this is reflected in

Fremantle’s rich mixture of cultures and nationalities.

One third of Fremantle residents were born overseas, with most coming from Europe, New

Zealand, South Africa and the USA. 15% of residents are from non–English speaking

backgrounds and 10% of Fremantle’s residential population has Italian origins. Over 50% of

residents are Christian, while 35% do not identify with any religious faith.

The population of Fremantle has grown steadily over the past 20 years from 23 500 in 1990 to

29 555 in 2011. Recent growth has been buoyed by residential developments in the northern

part of the city.

Compared to Perth’s metropolitan population, Fremantle shows a lower proportion of people

in the younger age groups (0 to 17 years) and a higher proportion of residents in the older age

groups (50+ years). Overall, 18% of the residents are under 18 years of age, 8% are between

18 and 24 years, 37% between 25 and 49 years, and 38% are aged 50 years and over.

Fremantle households tend to be smaller than the Perth average with 70% of dwellings

housing one or two people, while only 4% have five or more residents. Car ownership reflects

this, with 13% of households having no vehicles and fewer than 10% having three or more

cars.

Fremantle people are well educated, with 29% of residents holding a bachelor’s degree or

higher. At 6.4%, unemployment in the city is slightly higher than the national average.

The Fremantle economy is diverse, with 4 456 registered businesses operating across a wide

range of sectors. Many of the city’s enterprises are small businesses, with 20% of active

businesses employing fewer than five people.

The professional, scientific and technical services industry has the largest number of total

registered businesses in Fremantle, comprising 14% of all businesses compared to 17% in

Western Australia.

Health care and social assistance is the largest employer in Fremantle, making up 19.4% of

total employment reflecting the important influence of Fremantle Hospital. Transport, postal

and warehousing provides jobs for 8% of workers, manufacturing employs 10% of the

workforce and the retail industry employs a further 10%.

The city’s industrial economy is dominated by the transport, postal and warehousing sectors;

health care and social assistance and manufacturing.

The City of Fremantle is home to Western Australia’s principal general cargo port, with the

inner harbour handling 32 million tonnes each year.

Fremantle is an increasingly popular destination for cruise ships, with 14 transit cruise ships

and 13 000 passengers that visited Fremantle during 2013–14. All are attracted by the city’s

mix of culture, heritage, sport and entertainment; it’s vibrant al fresco cafe and bistro scene;

and its delightful climate, maritime flavour and carefree lifestyle.

MAYORS REPORT

2014–15 has seen the City take many steps towards our ultimate aim of making Fremantle the

most liveable and sustainable place it can be.

As we head into the tail end of our City of Fremantle Strategic Plan 2010-15 I believe we’ve

continued to build on the momentum of previous years by balancing the day-to-day needs of

the local community, with the task of revitalising our city centre.

Arguably the biggest topic over the last year, and indeed over the past few years was the

state government's local government reform agenda to reduce the number of Perth

metropolitan councils from 32 to 16.

As we all know, this did not proceed, however I would like to personally thank the City staff,

elected members and community members who contributed during the process. From a

concerted community effort as part of the ‘Fremantle Forever’ campaign which effectively took

a merger of Fremantle and Melville of the table, right through to the work City staff and elected

members did in preparing for a transition to the proposed boundary changes and merger with

East Fremantle. I would like to also thank the Town of East Fremantle elected members and

staff for the way in which they collaborated with Fremantle during the process.

If I could take one positive thing from the experience, it's that as a City we have the ability to

adapt to change and as a community, we are highly passionate and engaged with local

government and the importance it has on our day-to-day lives.

Another great passion of the Fremantle community is its commitment for sustainability and in

September 2014, one of our proudest achievements in this area came with the City becoming

one of two councils in Australia to achieve ‘One Planet’ certification for our existing

sustainability actions, strategies and policies The certification recognises international

sustainability leaders and is another signal that our efforts are not token gestures or small talk,

but are practical, effective and measurable.

Council also reached another sustainability milestone with the adoption of the modifications to

our investment policy. The modifications now give clear direction to divest council funds away

from financial institutions that support fossil fuel industries, unless there is no alternative.

This move was in response to the work done by 350.org, which has seen a groundswell of

institutions across the globe start to divest from carbon. The resolution saw Fremantle

become the first local government in Australia to divest for this reason, with the policy

modifications consistent with our commitment One Planet guidelines.

We’ve already committed to carbon neutrality so divesting funds away from financial

instruments that might increase the overall investment in fossil fuel industries was the next

logical step to take.

Some of the other key sustainability highlights throughout the year included the upgrading of

Fremantle Art Centre’s heating/cooling system and replacement of lights with energy–efficient

LED lighting, making early inroads into the development of a solar farm at the former South

Fremantle landfill site, joining the Responsible Café program and installing permanent street

recycling bins in the Fremantle CBD.

A big part of increasing sustainability is the sensitive development of areas within the

Fremantle CBD to attract more people living, working and recreating in the city centre. In

2014–15 we had a noticeable increase in investment in Fremantle with the much talked about

$1.3b investment pipeline continuing to deliver impressive results.

This has included the construction of several new projects which have had an immediate

positive impact on Fremantle. Developments such as the Bathers Beach House, the Heirloom

apartments in the East End and the announcement of a new DoubleTree by Hilton Hotel in

Fremantle have been positively received.

We’ve also had the strongest signals to date that the $220m Kings Square project will be

commencing in the near future. While progress has taken longer than we would have liked,

the recent expression of interest by the Department of Housing for office accommodation in

Fremantle is a major step forward for what would be a key project to invigorate the heart of

Fremantle.

Regardless of the location chosen (of course we hope it will be in Kings Square) it is none-the-

less an exciting announcement for Fremantle that will bring an additional 1 000 office workers

into the Fremantle CBD. This will provide a much-needed boost to the local economy following

the movement of hospital staff away from Fremantle Hospital when the new Fiona Stanley

Hospital commenced operations in late 2013.

Heritage preservation and restoration was once again a key highlight with projects at the

Fremantle Markets, Victoria Pavilion (Fremantle Oval) and the Evan Davies building taking

place throughout the year.

One of our oldest heritage buildings, the 160 year old Fremantle Boys’ School received a

facelift with stage one works completed. The works focused on replacing the roof cladding to

the eastern half of the building.

This is a wonderful building with a lot of history and character and was a high priority for

council. I’m pleased to also mention stage two works are currently underway.

We had another big year for alternative transport with $1m worth of bicycle infrastructure

projects and initiatives completed or in progress. This included a new bicycle awareness trial

initiative involving large yellow bicycle symbols painted along South Terrace to raise

awareness that this was a shared road for both motorists and cyclists.

With the 2010-15 strategic plan coming to an end, we’ve been busily going about planning for

the next one. A key component of this was the Fremantle 2029 Community Visioning Project

which wound up in 2014. After two years involving five workshops and close to 1 000 people

attending, Fremantle 2029 concluded with a report (Fremantle 2029 Community Visioning

Project - Report on Community Ideas) being released.

Following the report on community ideas, we released our Freo 2029 Transformational Moves

document which extends on the themes of the community ideas and outlines our vision for the

future of Fremantle.

The document identified transformational ’moves’ focusing on a different location or aspect of

Fremantle and the actions required to accommodate the city's future needs. The areas include

the city centre, waterfront, northern gateway and Fremantle Oval precinct as well as the city’s

transport links and connectivity.

The projects are certainly ambitious, but we feel they are also very achievable with the

appropriate level of cooperation and action from the state government, the private sector and

the broad community.

Also looking forward, The Committee for Perth along with The City of Fremantle launched the

Future Freo project in September. The FACTBase Perth research team at the University of

Western Australia have been preparing information on Fremantle as it is today as well as

identifying opportunities and challenges to ensure the region is an economically sustainable

and vibrant place to live, work play and invest for current and future generations.

This landmark project was made possible through a partnership between the City and key

organisations in Fremantle and the research will greatly assist us in making informed future

decisions.

As much as 2014–15 was about looking forward it was also an emotional year for Fremantle

as we joined Australia in looking back and commemorating the ANZAC Centenary. Fremantle

played an important role during World War I with Western Australian troops leaving our port

and we showed our respects with a number of events and projects.

One of the key projects was The 849 Project which honoured each of the 849 WWI

servicemen who lived in the greater Fremantle area, left for the war and never returned. It

was a monumental effort from the City’s events team who collated the historical information

and organised the series of events. Seeing the tens of thousands of people flock into

Fremantle for the special events, including of course the unveiling of the 849 names at the

Dawn Service at Monument Hill, will forever stay with me. I was very proud to represent the

City at these events.

Fremantle’s connection to the Nyoongar people has always been strong and this was further

strengthened as the Walyalup Aboriginal Cultural Centre (WACC) increased its profile during

the year. The City’s partnership with Pindi Pindi, an Aboriginal–owned and operated research

centre for community wellbeing, was an exciting new development for the centre.

Pindi Pindi is the research arm of Koya Aboriginal Corporate and has distinguished research

Professor Fiona Stanley, AC as its Patron. This partnership has given us the opportunity to

learn from each other, build dynamic relations with local Aboriginal people and develop the

independence of the WACC.

2014–15 was a year full of challenges but also one in which I feel Fremantle has come a long

way. I’d like to thank my fellow elected members for their passion and utter commitment to

Freo and its people. I’d also like to thank the City’s administration for their professionalism in

delivering an ever increasing number of services and facilities alongside a variety of

transformational projects.

I look forward to the 2015–16 financial year and believe we’re firmly on the path to cement

Fremantle as one of the world’s most liveable cities.

Dr Brad Pettitt, Fremantle Mayor

ELECTED MEMBERS

1 July 2014 to 30 June 2015

Mayor

Dr Brad Pettitt – term expires 2017

Library advisory committee

Strategic and general services committee

Planning services committee

Special projects committee

Beaconsfield ward

Cr David Hume – term expires 2015




Cr Josh Wilson (Deputy mayor) – term expires 2017



City ward

Cr Rachel Pemberton – term expires 2015



Cr Simon Naber – term expires 2017




East ward

Cr Ingrid Waltham – term expires 2015



Cr Dave Coggin – term expires 2017




Hilton ward

Cr Bill Massie – term expires 2015



Cr Sam Wainwright – term expires 2017




South ward

Cr Jon Strachan – term expires 2015



Cr Andrew Sullivan – term expires 2017




North ward

Cr Robert Fittock – term expires 2015



Cr Doug Thompson – term expires 2017




COUNCIL/COMMITTEE MEETING ATTENDANCE 2014–15

Attendance record for the period

1 July 2014 to 30 June 2015

Elected member

Ordinary council

meeting

(12)

Special meeting

of council

(3)

Planning services

committee meeting

(13)

Strategic and

general services

committee meeting

(12)

Special

projects

committee

meeting

(7)

Mayor, Brad Pettitt 11 3 6 6 5

Cr Josh Wilson (Deputy

Mayor) 10 3 9 2 3

Cr David Hume 10 3 2 11 5

Cr Rachel Pemberton 12 3 11 3 7

Cr Simon Naber 9 2 2 8 6

Cr Dave Coggin 12 3 1 12 6

Cr Ingrid Waltham 11 2 12 – 5

Cr Sam Wainwright 11 3 – 10 6

Cr Bill Massie 11 3 12 1 7

Cr Jon Strachan 12 3 9 3 6

Cr Andrew Sullivan 10 3 3 9 4

Cr Doug Thompson 9 - 1 8 -

Cr Robert Fittock 8 2 11 3 4

Notes:

if an elected member (EM) is unable to attend a committee meeting, the other EM for that ward may deputise in their place

the Mayor’s attendance at planning services committee meetings is optional, not a requirement.

CEO’S REPORT

CEO annual report 2014–15

For the last three years the major focus of my report has been on the future of local

government in the Perth metropolitan area. It seemed as though we were in for major

structural changes that would reduce the number of metropolitan local governments from 30

to 16.

However, as we all now know, in February 2015 the Premier announced rather unexpectedly

that the government would no longer pursue boundary reform in the metropolitan area. This

was primarily because communities that were provided with the opportunity to vote on

proposals that affected them (and not all were given that opportunity), overwhelmingly

rejected the proposals.

As I indicated in my last report, we had been working diligently through the process of

amalgamating and distributing assets and liabilities in line with the government proposals,

developing working models for delivery of services to a new and larger local government,

and transitioning staff to a new organisation for some time. That effort stepped up

significantly until the announcement by the Premier.

The cost of that effort can’t be valued in terms of its effect on staff who had invested a lot of

time, emotion and energy into the process, but in a purely financial sense as an organisation

that effort was estimated have cost $1.4 million of which $500 000 was in direct costs –

outlays to consultants - while the balance of around $900 000 was staff time allocated. The

government has clearly stated that it will not reimburse any of that cost back to the local

governments involved in the process, meaning our ability to deliver our strategic plans for

our community is impaired in the short term.

However, now that boundary reform is off the agenda (at least for the time being) and local

government gets back to a state of normality delivering services to our communities, we can

refocus our efforts on improving existing services, developing new services that match the

needs of the community, maintaining community assets, and making Fremantle an even

better place to live, work and visit.

Whilst the reform process has been the major focus for me personally and some key staff for

the past few years, as an organisation we have worked particularly hard to ensure minimal

disruption to business and service delivery. I believe this is demonstrated through the

results of the latest community satisfaction survey undertaken by the City (May 2015) which

shows improvement in satisfaction levels with the services we deliver and with living in

Fremantle generally. Further information on this survey is provided later in this annual

report, along with a range of other achievements over the past year as detailed in the

Directors’ Reports. I have highlighted a few key projects that should be of particular interest

to readers.

2029 vision

The City undertook an extensive community engagement exercise through 2013 and 2014 to

help the Council develop a long term vision for the future of Fremantle. Five major visioning

workshops and three stakeholder forums were attended by close to 1 000 people, many of

whom would not ordinarily be engaged in the future of Fremantle.

Through those workshops and forums a plethora of fantastic ideas were unearthed, all of

which have been captured in the first publication entitled “Fremantle 2029 Community

Visioning Project - Report on Community Ideas”.

These ideas will not only inform future strategic plans for the City, but also led to the release

of a second publication entitled “Freo 2029 – Transformational Moves”. This plan outlines

the major projects that will transform Fremantle into the vibrant and bustling centre that we

all aspire for Fremantle to be. This visionary document will be a major driver for change in

Fremantle for many years to come.

Kings Square redevelopment

One of the major transformational moves involves the redevelopment of the Kings Square

Precinct in the heart of Fremantle. The formal contracts for this project being undertaken

with Sirona Capital Management were signed in May 2013 with a 12 month extension to the

contract granted by the City in May 2015.

The contract with Sirona who own the Myer building, requires Sirona to purchase the

Queensgate Centre, Queensgate Car Park, and the Spicer Site from the City and redevelop

those properties. The City is required to redevelop its Civic and Administration Centre

(including Library and Visitor Centre).

The winner of the City’s international design competition, KHA Architects has completed the

design for the City’s Civic and Administration Centre, and is now subject to final Council

endorsement. Further work on the design will be undertaken through the coming financial

year as the City confirms cost estimates and internal layout requirements.

Whilst there has been speculation in the community that this project may not happen, there

are positive signs that it will get underway in the near future. After announcing in 2011 that

the Department of Housing would be relocated to Fremantle, the state government recently

advertised an ‘Expression of Interest’ for office accommodation in Fremantle.

Whilst the City and Sirona would both love for this project to be successful in its bid to win

that EOI, whether it is or not, this is great news for Fremantle. It would bring around 1,000

additional workers to Fremantle giving our Monday to Friday economy a real boost.

Irrespective of the success or otherwise of the EOI, the City is confident that the Kings

Square Project will proceed. Sirona has been developing an alternative plan for the

development of this precinct and that plan is rapidly maturing to a point that should see

contract obligations met and this major catalyst project in the heart of Fremantle proceed.

As indicated above, there are many more projects which are reported on in the Director’s

reports and I encourage all to take the time to peruse those reports to realise the great work

being done by the city’s staff for the greater Fremantle community.

Finally, as always, I take this opportunity to thank the very dedicated and hard-working staff

and elected council of the City for their continued commitment to Fremantle. Working in

local government is not always easy, but it is rewarding when you work as a team to achieve

outcomes that provide lasting benefits for the residents and business owners of the city.

Graeme Mackenzie, Chief Executive Officer

CITY OF FREMANTLE ORGANISATIONAL STRUCTURE

Chief executive:

Elected members

Left column

Community development:

Arts and culture

Community development

Service and information

Middle column

City business:

Business systems

Economic development and marketing

Field services

Second middle column

Strategic planning and projects:

Development approvals

Strategic planning

Strategic projects

Right column

Infrastructure and project delivery:

City works

Infrastructure projects

City assets

DIRECTORS 2014–15

Graeme Mackenzie

Chief Executive Officer

elected members

elected members’ support

implementing council plans

key liaison between elected members and staff

organisational leadership.

Marisa Spaziani

Director community development

customer service

visitor centre

festivals and events

Fremantle Arts Centre – Moores Building

Fremantle Legal Centre and Warrawee

library and information

positive ageing, youth, aboriginal engagement

public art and City art collection

sport and recreation, Fremantle Leisure Centre and Samson Recreation Centre

the Meeting Place and Fremantle Community Care program.

Glen Dougall

Director city business

building and development compliance

commercial properties

communication

economic development

environmental health

finance services

governance

human resources

information technology

marketing

parking services

ranger services

rates

record management.

Paul Trotman

Director strategic planning and projects

city development projects

development and building approvals

heritage

strategic planning sustainable development

urban design

community engagement

Lionel Nicholson

Acting director infrastructure and projects

City's infrastructure assets including;

footpaths

graffiti

maintenance of buildings

parks

plant fleet

reserves

roads

stormwater drainage

waste management.

COMMUNITY DEVELOPMENT HIGHLIGHTS

Community development provided a range of services, activities, community events and

programs with the aim of improving quality of community life through participation and

community engagement within the vibrant culture of Fremantle.

Service and information

Customer service

The customer service team had a successful year servicing in excess of 66,000 phone

contacts and 31 000 face to face enquiries. There is a continuing trend of growth in the use

of the call centre as the main point of contact in the city with a20% growth in calls made to

the city. The customer service team created 8,500 customer requests for service that were

directed to the appropriate City officer.

The customer service team is continuing to strive for further improvement in the services

provided by the City with internet services being developed and expanded over the year with

electronic requests for service introduced. There were 250 requests made using this system

in the first full year of service. This is expected to rise dramatically following the

implementation of the new web site in September 2015.

Fremantle Visitor Centre

In 2014-15 the Fremantle Visitor Centre supported over 110 000 visitors. The centre

provided a range of services including accommodation, tour and travel bookings, general

information, cruise ship support, and merchandise.

We wish to acknowledge and thank the City volunteer guides who provide invaluable

assistance through provision of information to the visitors to the city.

Fremantle City Library and Information Service

Over 242 000 people visited the library over 2014-15, borrowing 245 000 items, of which 9%

were electronic resources. Over 30 000 people used the library’s free Wifi service and 23

000 used the public access computers. In late 2014 Library hours were extended to include

Sunday afternoons and earlier opening on weekday mornings.

The library extended its services into the community through the Davis Park community day,

the City’s “Park(ing) Day event, the Outdoor Reading Room, monthly talks to new parent

groups, early literacy presentations to playgroups, pre-primaries and school classes, and a

partnership with the One Stop Shop for the Fremantle My Place writing competition.

The library continued to catalogue Fremantle’s history through the Local History Centre.

Digital photos were uploaded to a new software product, providing vastly improved search

and accessibility for users, plus enabling availability on the National Library’s historical

database, a project which was nominated for the Library Board of WA’s annual excellence

award.

Fremantle Toy Library

The toy library continued to provide an opportunity for 200 families with children aged 0–6

years to access toys, educational equipment, and party hire equipment and dress up

costumes. Residents are also able to return their library loans, and use a public access

computer through the toy library, which is located at the Hilton Community Centre.

The City wishes to acknowledge and thank the volunteers of the toy library, who provide

invaluable assistance through sewing costumes, checking and cleaning returned items,

assembling new toys and repairing existing ones.

The Meeting Place Community Centre

The Meeting Place welcomed some 1 300 participants during the year, and partnered with

fifteen community agencies to present programs and with a range of experts, community

leaders and volunteers delivered over 260 activities.

Social groups and room hire offered community members opportunities to network and

connect with likeminded people and provided a popular venue for private and community

based functions.

The capacity for community members to collect or return library loans at the Meeting Place

was well received as was the extension of the Outdoor Reading Room to the centre’s

veranda.

Fremantle Volunteer Service

The Fremantle Volunteer Service supported 90 member agencies and almost 1 000 potential

volunteers, to provide and access volunteering opportunities throughout Fremantle in 2014-

15.

Community development

Aboriginal engagement

Over three and a half thousand people have visited the Walyalup Aboriginal Cultural Centre

(WACC) since it was opened March 2014.

The new name, Walyalup and a logo has been developed in consultation with the Aboriginal

community for the centre. The WACC continues to exhibit artworks, artefacts and historical

information as well as employing Aboriginal people to run workshops in topics such as art

and language.

With funding from the Commissioner for Children and Young People, the City consulted with

Aboriginal children from Winterfold Primary and South Fremantle High Schools and

produced a rap song and video to assist in expressing their views.

Youth

The Esplanade Youth Plaza (EYP) celebrated its first birthday in April 2015. Over 30

workshops have been programmed at the EYP including skate, bmx, scooter and parkour

with close to 1 000 participants.

Urban art projects, in conjunction with Fremantle educational facilities have included bus

stops outside Fremantle Hospital, South Street and Winterfold Road.

Sport and recreation

A range of free sport and physical recreation activities were organised throughout the year

for residents to participate in. These events included yoga at Arthur’s Head, Bike Week

events, Ride to Work Breakfast, Fremantle Festival soccer and volleyball competitions and

an inclusive Access All Areas day at the Esplanade.

The City assists the Department of Sport and Recreation to deliver the KidSport program

and approved 170 applications during the last financial year. The City also approved 31

youth access grants and 21 youth travel grants.

Positive ageing

The One Stop Shop, a drop in space for Over 55’s, continues to be a very active space with

approximately 40 visitors per day and 20 volunteers overseeing the day to day running. The

rooftop garden located upstairs in the Fremantle Town Hall also provides an interactive

space to share garden skills and socialise.

The Come and Try program, was scheduled 5 times per year with 75 activities on offer. The

programs continues to provide free art, health, technology and wellbeing courses and

workshops to approximately 1 000 participants at various locations throughout the city.

Buster the Fun Bus

Buster the Fun Bus provides supported parenting sessions to families with children under

five years old at a number of parks and outdoor locations such as the Fremantle Arts Centre,

North Fremantle, Beaconsfield, Hilton and Melville. Buster the Fun Bus secured a new van

with support of Lotterywest and the City of Fremantle.

Fremantle Community Legal Centre

Key practice indicators for FCLC

Information and advice provided 2014–15

Type Number of cases

Information 565

Advice 2 403

Open cases 395

Closed cases 450

CLE 28

Law reform 9

FCLC provided a range of legal services inclusive of legal and financial advice, representing

clients in court in relation to domestic violence and social security matters. The service also

offers an after–hours legal advice service.

Fremantle Community Care

Fremantle Community Care provide support to older adults to maximise wellbeing,

independence and access to the community.

102 Clients received the following services:

HACC services

Transport service - Dial A Ride (shopping bus and transport)

Social Outings – Weekly outings to various venues.

Over 55’s

Seniors big day out – sixteen clients provided with fortnightly outings.

Is a service of the City of Fremantle.

Both Dial-a-Ride and Social Outing services are funded by HACC (Home and Community

Care) and available to people residing within the boundaries of the City of Fremantle. Fees

and eligibility are set by HACC.

Warrawee Women’s Refuge

Warrawee was open for accommodation for women and children escaping domestic and

family violence every day of the last financial year.

Warrawee accommodated a total of 45 families (45 women and 94 children).

Fremantle Leisure Centre and Samson Recreation Centre

It’s been 15 months since the re-opening of the leisure centre from the $5m redevelopment

that included, upgrades to four swimming pools and surrounds, new point of sale software

suite and the installation of energy efficiency plant equipment.

Community feedback has been positive; some of the comments received are the constant

warm water temperature, easy access and egress into all pools via the ramps and on-line

ability for swim school enrolments.

The 2014–15 year for both facilities was considered to be successful as attendances are

steadily increasing for both facilities. Leisure Centre – 411 854 and Samson Recreation

Centre had a total of 6 986 people participate in centre run programs including netball,

badminton and yoga. In addition, approximately 19 regular community groups hire the

recreation facility each month totalling 998 sessions with additional one off bookings.

Samson also supports an in-kind hall space venue for a disability program where there have

been 742 participants throughout the year. Tennis bookings were at 101 sessions for the

year.

The swim school has had 5 560 enrolments this financial year catering for 12 week year old

babies through to adults, with a retention rate averaging at 85%.

The leisure centre membership base is steady increasing ranging between 900 – 1 000

members and growing each day, with a retention rate of renewing members ranging

between 55% to 60% which is considered high in the health and fitness industry.

The aquatic team had no major injuries in the past twelve months, and continue to be

leaders in the field of aquatic supervision and rescue by coming second in the Royal

Lifesaving Society and Leisure Institute of Western Australia Aquatics Pool Lifeguard

Challenge.

The leisure centre was assessed by Royal Lifesaving Society on behalf of the Local

Government Insurance Scheme, which received an excellent overall rating of 97.39%. The

comprehensive assessment covers areas such as administration requirements, design,

water treatment, chemical safety, staff qualifications / training and operational procedures.

Arts and culture

Festivals and events

The City’s festival program continues to grow and improve. The 2015 Street Arts Festival

reached critical mass with regard Fremantle business involvement with many traders

genuinely engaging with the festival for the first time, creating unique hospitality and

entertainment zones along South Terrace and down High Street. It is estimated that over

100 000 people attended the festival.

Hidden Treasures again provided the opportunity for over 3 000 people to engage with more

than 50 bands in venues in the West End. Fremantle Festival presented over 100 events in

2014 inclusive of the Children’s Fiesta, Norfolk Lanes Youth festival and Wardarnji Festival

and The Heritage Festival, held in May 2015, presented over 60 events shining the spotlight

on all things retro in Fremantle.

City of Fremantle centenary ANZAC Day celebrations attracted over 12 000 people to the

major dawn service at Monument Hill. An estimated 40,000 people attended the City of

Fremantle Australia Day celebrations, encompassing the Indian Ocean Fire Works.

The Winter Festival operated on Esplanade Reserve throughout July and attracted many

visitors in to the CBD in what is traditionally a quieter time for traders. Over 40 000 tickets

were sold to the event which included an ice rink and snow machine.

Fremantle Arts Centre

FAC presented 14 exhibitions over seven separate exhibition periods to a total audience of

59 832.

The exhibitions by Ragnar Kjartansson (Iceland) presented as part of the Perth Festival and

the Gallipoli shows by Lev Vykopl and Paul Uhlmann were highlights. The annual FAC Print

Award continues to be popular.

FAC’s acclaimed exhibition from 2012–13 we don’t need a map; a Martu experience of the

western desert toured to five regional galleries in New South Wales, Victoria and

Queensland, fully funded by the federal and state governments and BHP Billiton.

The Artist in Residency program provided studio space for 69 artists (48 WA, nine interstate,

12 international) in the thirteen studios at FAC and the Moores Building. A highlight was the

residency with Taipei sound artist, Yen-Ting Hsu, as part of the reciprocal Asia-Australia

Asialink residency program. The Moores residential apartment provided 400 nights

accommodation to 15 regional, interstate and international artists.

The annual free summer music program ran over 24 Sundays to an audience of 23 520 and

featured numerous Fremantle based musicians. Fremantle Community Bank, Bendigo Bank

continues as the series’ sponsors.

Eleven major concerts including Nick Cave, Chet Faker, Paul Kelly and The Waifs as well as

the City of Fremantle Candlelight Carols were presented on the South Lawn to a total

audience of 35 577. Katy Steele, Vikki Thorn and Donna Simpson and Emily and Jesse

Lubitz were featured in the annual Sonic Sessions with host Lucky Oceans. The touring

Cuban band, El Son Entero was presented at Fremantle Arts Centre as part of the

Fremantle Street Arts Festival.

Other music highlights were: the launch of a percussion-based mini-festival offBEAT, Lost

and Found Opera presented the opera Medee, and St Georges Cathedral Consort

performed outdoors for the first time. The

Little Big Shots International Kids Film Festival, presented for the first time, sold out.

Proximity, a unique one-on-one performance season, with 12 mini-shows was presented

across the entire venue, taking audience members in to unseen parts of FAC.

The Learning Program attracted an overall total of 4 867 enrolments in day-time, evening,

weekend and school holiday classes, including 1 914 (39%) children. More than 600 courses

were presented by 60 artist/tutors.

The annual Christmas Bazaar attracted over 11 800 people.

The shop FOUND at FAC, which stocks over 100 WA maker’s and artist’s products,

continued to trade successfully despite the generally gloomy retail environment.

City of Fremantle art collection

The City of Fremantle Art Collection conducted five exhibitions displaying 145 artworks;

highlights included Weight of Evidence – Collection Ceramics, Breaking Cover, an Anzac

centenary exhibition of artworks made by artists who served in the armed forces 1916–2009,

and also Girt by Sea at John Curtin College of the Arts. The City acquired 16 artworks

including paintings by Marcus Beilby and Ken Wadrop, ceramics by Maxine Lindsey and

prints by Robert Dorizzi and Gosia Wlodarczak.

Moores Building Contemporary Art Gallery

The Moores building continues to be a popular exhibiting gallery being fully booked and

scheduled generally eighteen months in advance. The gallery showed a total of sixteen solo

and eleven group exhibitions, presenting the work of over 600 individuals. The group

exhibitions included local artist groups, tertiary art schools and art awards. The gallery

continues to promote and support local artists.

The Moores Gallery was utilised for the Fremantle Festival exhibition, Heritage Festival

exhibition, the City’s 25under25 exhibition and the popular FAC Students’ Exhibition, as well

as hosting various council meetings and events including the annual citizenship ceremony

and award evenings.

Public art

The City’s second temporary public art program presented three successful site specific

artworks in Kings Square in April by Paul Caporn, Theo Koning and Feast Your Eyes artists

team. One of the artworks was designed as a temporary venue for community activities.

Conservation of the public art collection included restoration to the North Fremantle

Memorial soldier, the Hector MacDonald Memorial in Esplanade Park and community

artworks in Valley Park White Gum Valley and Davis Park in Beaconsfield.

The City supported FORM’s PUBLIC Symposium and commissioned an international mural

for Fremantle. Tony Pankiw and Sue Codee’s Ship of Stories – Anzac 2014 was purchased

from the Sculpture at Bathers exhibition for the Public Art Collection.

CITY BUSINESS HIGHLIGHTS

Human resources

This service provides:

industrial relations advice and support

employee contract management

occupational health and safety

payroll

learning and development at the corporate level

recruitment and selection advice and support

wellbeing programs.

During 2014–15 our achievements have mainly been in the electronic systems delivery of

our products and services which include:

1. Electronic timesheets.

2. Electronic leave process.

3. Developed & implemented HR intranet page.

4. Developed a new on and off boarding process that will replace the paper based

recruitment and selection process.

5. Developed a new electronic induction product to enable consistent and timely access

of corporate information.

6. Developed electronic leave liability reports for management including leave

projections.

7. Risk and Safety management reporting electronically on performance in these areas

including a risk management plan, risk matrix of organisational risks, risk rating

system and a safety management plan.

8. All HR, risk and safety documents are held in toolkits for each of these areas that

allows whole of organizational access to information.

From an industrial relations perspective finalised the City of Fremantle workforce

agreements with no disruption to the workforce.

Economic development and marketing

Commercial parking

The City aims to strike the right balance between residential and commercial parking in

Fremantle. The approach to parking in the CBD aims to ensure off-street parking options are

provided at a reasonable rate to encourage longer term parking, whilst keeping on-street

parking competitive for the provision of shorter term parking. There are more than 5,000 on-

street and off-street parking bays in Fremantle.

Property management

Major projects included:

Purchase of 2 Jones Street, O’Connor for a new City of Fremantle depot.

Sale of 7 Quarry Street which will be redeveloped as 49 residential apartments, 10

of which include a key worker component.

Sale of 50 Pakenham Street which will be redeveloped as 19 Apartments (with key

worker components) and commercial space at street level.

Lease negotiated for a proposed wave pool “Flowhouse Fremantle” at Port Beach.

New lease negotiated for the Leighton Beach kiosk.

Short-term activation of the Queensgate building (as long-term tenants vacate in

preparation for the Kings Square project).

Lease negotiations were concluded for Sunset Venues for use of Unit 1, J Shed as a

music, arts and hospitality hub.

Lease renewals were negotiated for Salt Restaurant at Port Beach, Kidogo Art

House and Japingka Art Gallery.

Economic development

The role of the Economic Development team is to facilitate development of a strong and

sustainable Fremantle economy with increased levels of public and private sector

investment, high-quality employment, successful businesses and satisfied visitors. Highlights

from the year are as follows:

Investment attraction

Since the adoption of the City’s award-winning Economic Development Strategy in 2011

there has been a steady stream of new projects in Fremantle as part of an investment

pipeline which now exceeds $1.3 billion.

The pipeline, which includes a healthy mix of residential, commercial and hospitality

development, comprises a number of projects either under construction, approved or in the

planning stage. When complete, the projects will deliver the following: 1 252 residential

dwellings; 23 252 sqm of retail and hospitality; 39 409sqm of office; and 635 hotel rooms.

New businesses in Fremantle

The City continues to proactively attract unique, high-quality small businesses to Fremantle.

In total, 49 new businesses opened in the Fremantle city centre, while 19 closed down. The

City’s business attraction incentives resulted in three new small businesses taking over

500sqm and creating eight jobs in Fremantle during 2014–15. This adds to the four small

businesses that were recipients of the City’s business attraction incentives scheme in the

previous financial year.

A new wave of operators are starting to change the retail and hospitality landscape in

Fremantle. Some of the successful new businesses that have opened in Fremantle in this

past year include: the landmark Bathers Beach House; Lessons concept store clothing

retailer; the Mantle food, drink and creative hub; Gesha Coffee café on Queen Victoria

Street; and on High Street the Artisan Store, Lapa Brazilian Barbeque restaurant, and

Epicure small bar.

The economic development team responded to almost 100 incoming business enquiries in

the financial year. This shows an increasing level of business interest in Fremantle, at

varying stages of development.

Place marketing

Fremantle. Be part of the story

The ‘Fremantle. Be part of the story’ strategy continues to build awareness and a positive

perception of Fremantle as an attractive place to spend leisure time. The strategy promotes

the www.fremantlestory.com.au website as the single source of truth for all the leisure

activities that Fremantle has to offer. The website showcases Fremantle’s leisure

experiences through five categories: arts and culture; eat and drink; see and do; events and

festivals; and shopping.

The City’s efforts focused on building awareness of this website and its content, and on

improving the perception of Fremantle as an enjoyable place to visit. In 2014–15 the website

attracted 214 587 unique users, and the Fremantle story Facebook page achieved 3.6

million ‘impressions’ and reached 1.4 million people over the year. Plans are underway for

http://www.fremantlestory.com.au/

a quarterly Fremantle story magazine that will be distributed throughout the Perth

metropolitan area.

National Tourism Gold Medal

In April 2015, the City overcame an impressive field to win gold in the ‘Local Government

Award for Tourism’ category at the 2014 Qantas Australian Tourism Awards – only one of

two gold awards won by Western Australia this year. Major factors contributing to the award

were the City’s festival and events program, planning scheme amendments, its innovative

‘Fremantle. Be part of the story’ marketing strategy and the growth of high-quality visitor

servicing.

Corporate communications and media

The role of the communications and media team is to promote the proactive role that the City

of Fremantle plays in developing Fremantle into a thriving and sustainable city. The

communication team continued to focus on the strategic use of digital communication tools

in response to increasing demand for online information. These formats include social media

platforms such as Twitter, Facebook and LinkedIn that provide wide-reaching and

instantaneous updates.

Key figures for the financial year are:

200 media enquiries answered

995 651 unique page views to the City’s website

4 833 City of Fremantle Facebook followers

4 604 City of Fremantle Twitter followers

22 City of Fremantle managed social media accounts (Facebook and Twitter

combined)

568 professionals following the City’s Linkedin page

Four quarterly strategic plan updates produced

Distribution of 12 editions of e-newsletter ‘Newsbytes’ to a total of 2 600 recipients

Production of weekly newspaper column ‘Newsbites’ in the Fremantle Gazette, with a

total annual readership of 2 704 000 (52 000 per edition)

1 234 media articles about Fremantle issues

51 media releases distributed to local and state media contacts.

Key projects for the communications team in 2014–15 included the development of a new

corporate website and a new quarterly newsletter called ‘Pulse’, to be delivered to 21 000

residents and businesses in the City of Fremantle. Both projects were to be launched in the

first quarter of the 2015–16 financial year to improve the City’s communication with

residents.

STRATEGIC PLANNING AND PROJECTS HIGHLIGHTS

Over the course of the financial year the Directorate has implemented a substantial change

in its structure in order to support Council’s drive to transform Fremantle into Perth’s port

city.

This change saw the establishment of three business units to focus on development

approvals, strategic planning and strategic projects, with all three managers in place at the

very end of the financial year. This all occurred whilst maintaining the day to day core

business activities of determining statutory planning and building applications and within an

environment that also dealt with local government reform proposals. In addition council

formed a special projects committee to drive forward its new focus on transformational

projects.

Over the course of the year well over 800 planning proposals (including 650 planning

applications, 12 Development Assessment Panel (DAP) applications, 1 extension of time, 13

liquor licences, 36 variation applications and 11 public work applications), 55 subdivision

applications and some 620 building permits were processed. As can be seen from the

following table Fremantle continued to attract substantial development interest across a wide

range of land uses.

Major developments approved in 2014-15 are as follows:

Address Description Approval date Value

16-18 Kwong 5 storey apartment complex July 2014 $3.0m

Mirvac Stage 2 5 storey apartment complex October 2014 $75m

40 McCombe 3 storey mixed use December 2014 $5.2m

26 Parry 4 storey mixed use December 2014 $7.1m

29 Leighton 6 storey hotel June 2015 $14.7m

During 2014-15 the directorate delivered a number of core strategies that will underpin the

City’s transformation over the coming years, being:

Freo 2029 ~ transformational moves

City of Fremantle Integrated Transport Strategy

City of Fremantle One Planet Fremantle Strategy

City of Fremantle Green Plan.

In February 2015 the City launched its Freo 2029 ~ transformational moves strategy which

sets out a number of transformational projects that are intended to revitalise the economic,

physical and social fabric of the city centre. At the same time work continued on preparation

of a City of Fremantle Activity Centres Structure Plan for the Fremantle city centre which will

be a statutory document to complement Freo 2029 and the new City of Fremantle Economic

Development Strategy (another of the core transformational strategies).

The City worked with Fremantle Port Authority and the Public Transport Authority in planning

to integrate commercial development opportunities at the western end of Victoria Quay with

improved pedestrian and vehicle linkages to Fremantle CBD and the railway station,

including a re-designed bus interchange and new public space connecting the station

entrance to Pioneer Park and Market Street. The plans were submitted to the WA Planning

Commission for final approval in December 2014.

Also in February 2015, council adopted a new City of Fremantle Integrated Transport

Strategy which will guide the City’s decision-making on transport policy, planning and

infrastructure in coming years. Under this banner much work, in the latter of half of the year,

was focussed on the state government’s proposed Perth Freight Link.

September 2014 saw council adopt the City of Fremantle One Planet Fremantle Strategy

which runs to June 2020. By the end of June 2015 many of the projects and actions were

well in hand; in particular progress was made on investigating the sustainable development

potential of the City Works Depot on Knutsford Street and in renewable energy through the

letting of an Expression of Interest for a solar farm on the old South Fremantle Landfill. The

reporting year runs from October to September, with the first review due in late 2015.

Work commenced in late 2014 on preparation of a new City of Fremantle Green Plan to

guide the provision, management and improvement of green spaces and tree cover

throughout the City of Fremantle. By the end of the financial year work had been completed

on benchmarking canopy mapping across city, an extensive open space form, function and

gap analysis completed and a community workshop held to validate Working Group ideas. A

draft plan will be released for community comment in late 2015.

Over the course of the year the City continued to focus on work designed to give practical

effect to the regeneration of the City. This included a series of amendments to the City’s

Local Planning Scheme intended to encourage development of more diverse and affordable

housing, both in suburban areas and as part of mixed use development along key public

transport routes (existing centres along South Street); completion of the final stages of the

planning process to guide residential redevelopment of the former Kim Beazley School site

in White Gum Valley; and approved, after extensive community engagement, a new local

structure plan for the Swanbourne Street development area.

Heritage remains a core activity of the Directorate with a number of initiatives during the

year:

The City continued to provide advice on working with and adapting heritage listed

buildings in the City, as well discussing good conservation practice and building

maintenance.

Working together with the infrastructure and project delivery directorate, a long-term

approach for the care of City owned heritage buildings, including carrying out an

ongoing program of staged projects to address the backlog of conservation works,

maintenance and compliance upgrades to City owned heritage buildings is being

introduced.

Work started on production of a series technical advice sheets on the principles of

good conservation practice, traditional building techniques and care of buildings. Two

technical sheets were produced on Limestone Buildings and Lime Mortars.

A major project to conserve the exterior of the Fremantle Town Hall was initiated and

a budget of $1.6m set aside by council to undertake the first stage involving the

replacement of the deteriorated roof and reinstatement of the original slate cladding.

These works will be carried out in 2015–16.

INFRASTRUCTURE AND PROJECT DELIVERY HIGHLIGHTS

Infrastructure and project delivery highlights

The infrastructure and project delivery directorate is responsible for managing the City's

infrastructure assets, including roads, storm water drainage, footpaths, bike paths and end of

trip facilities, parks, reserves, streetscapes, trees, natural areas and foreshores, vehicle

fleet, waste services and the City's building portfolio.

It is our commitment to ensure that the entire City’s infrastructure is built, rehabilitated and

maintained effectively for the purpose intended, for its normal asset life.

We provide technical advice and assistance to other administration service areas,

government and private agencies, for planning and developing urban renewal projects.

Advice and support is also provided for initiatives and projects that are locally and regionally

focussed, such as for environmental sustainability, regional reserve, coastal and river

bushland and infrastructure management, waste, transport and major infrastructure such as

the Port, marine and river environments. Officers work closely with Main Roads WA, the

Swan River Trust, other local governments, state agencies, not for profit organisations,

community and sports groups, individuals and the business community.

Infrastructure projects

The City completed around $10m of improvements in its civil infrastructure capital works

program, partly funded by in excess of $1m of grants from bodies such as Main Roads WA

and the Federal Department of Transport and Regional Services (Roads to Recovery

program).

Major programs exist for road reconstruction and rehabilitation, drainage, footpath

replacement, street vision projects and traffic management projects. Development of the

project management framework and processes

Projects included:

In excess of $1m expended on bike infrastructure.

$1.4m expended on road rehabilitation including Rennie Crescent and three sections

on Hampton Road.

Traffic management improvements include:

Traffic calming on Rennie Crescent, Wray Avenue and Terrene Lane.

Improving lighting on South Terrace, around the city centre and suburbs.

Upgrade of 13 footpaths around Fremantle.

Drainage improvements around Fremantle including Marine Terrace and Hampton

Road.

City assets

The City asset business unit incorporates three areas of delivery for the City, asset

management, facilities management and the City's comprehensive building projects portfolio

management. The City assets team delivers the complete methodology when design and

build project works are being delivered. This is to ensure the diversity of City assets are

being recognised through utilisation and capitalisation of our important heritage assets.

Fremantle Arts Centre roofing renewal program.

Fremantle Arts Centre toilets upgrade for DDA.

Fremantle Arts Centre fire integration system.

Fremantle Leisure Centre program pool roof replacement.

Port Beach change rooms and toilet upgrade.

Union Stores heritage compliance works.

Victoria Pavilion compliance works.

Evan Davis heritage compliance works.

Leighton Beach toilet/change rooms/kiosk renewal.

New operations centre prelim works.

Fremantle Boys School heritage compliance works.

Cantonment Hill security cameras and lighting works.

Depot security cameras and fencing.

A major focus for the assets team was the ongoing development of advanced asset

management plans, cost gap analysis and levels of service for individual asset classes of

roads, paths, drainage, buildings, parks, street furniture and fleet.

Each one of these plans describes the asset and provides information about the whole of life

implications (mainly budgetary) about owning these assets. Long term renewal programs

have been derived from these plans as well as the ability to bench mark against other similar

organisations.

Challenges exist for Infrastructure and Project Delivery in continuing to provide a balanced

infrastructure asset management strategy from available financial resources, given the

relative age and condition of these assets and the demands for other funding programs.

City works

The City also spent nearly $4m on routine maintenance of the City’s civil infrastructure

assets, including street lighting.

The below table shows the approximate tonnages of Fremantle waste disposed:

Method of waste disposal (t)

Total household waste – green bin Tonnes

Total tonnes collected 10 459

Regional Resource Recovery Centre

(composting)

7 913

Landfill 3 374

Total household waste – yellow top recycling

bin

Tonnes

Total tones collected 3 480

Materials recovery facility 2956

Landfill 524

Additional waste services Tonnes

Commercial collection 5 767

Green waste collections (verge) 903

Commercial recycling collection 152

Green waste operations 90

Junk/whitegoods/metals (verge) 1 204

Junk operations 319

Public area litter and street litter bins 542

Street sweeper waste 740

Parks and landscapes

The year ending June 2015 saw the parks and landscapes team deliver an operating

program of $7.67m and a capital works program of around $1.5m, including:

The first stage of repairs to the Harvey Beach River wall in North Fremantle

advantaged the low tides.

Arthur Head received some improvements and heritage protection works, including a

new path to the disabled toilets in the Arts Precinct.

Monument Hill underwent a major refurbishment, including the gardens, trees, walls,

memorials and main cenotaph in readiness for the centenary ANZAC celebrations in

April 2015. Likewise at North Fremantle, the little park received some retaining wall,

irrigation, grass, tree, furniture and cenotaph works for ANZAC Day.

The gardens at Pioneer Park were given a facelift to welcome train arriving visitors.

Davis Park was refurbished with a scooter path, new playground with nature play

elements, upgraded basketball, and landscaping and park furniture.

The irrigation bore at Walker Street that services the South Beach parklands and

irrigation electrical cubicles at Gil Fraser, Kings Square and Queens Square were

replaced.

Playspace and park furniture at King William (Florence) and Valley Parks were

developed by working alongside the local community members who keenly lead and

undertook gardening and other works in the parks.

Park infrastructure including Gibson Park and Hilton Bowling Club retaining walls,

seats and bollard fencing were installed.

The best location for the basketball facilities in the South Beach and Fremantle

areas, and for dog exercise facilities at Stevens reserve were resolved through

extensive community consultation, ready for installation in 2015-16.

Booyeembara Park continues to develop as the park moves closer to its vision as an

important place in the heart of Fremantle residents where the City’s geology,

recycling and cultural elements come together. The entirely community run inaugural

Ngala Maya Festival in March 2015 was an enormous success. It was attended by

500 people who participated in and enjoyed the entertaining and informative

afternoon, also providing their ideas for the final management plan.

Greening the West End of the CBD is thoughtfully aimed at enhancing heritage

values, increasing human comfort and meeting the needs of a modern urban

business environment. The new tree plantings in Little High Street were well received

and help cool the hard surfaces and extend the natural foreshore canopy from

Bathers Beach across the railway into the car park.

Wilson Park overflow car parking and the best use of the park for recreation lead to

turfing, fencing, garden and path works.

Designs for a major streetscape enhancement in South Street were completed and

plans for landscape developments as part of new housing projects such as at North

Fremantle, Fremantle and White Gum Valley were reviewed and approved.

More than 2 500 trees were planted this financial year, with the largest portion

planted in natural areas. Nearly 350 were street trees, with the most going in White

Gum Valley, followed by Fremantle. More than 300 were planted within grassed

parks. In addition, 100 trees were installed as part of the mosaics works to the pots

along the Cappuccino strip and

Esplanade, Princess May, Queen’s Square parklands and Cantonment Hill master

planning; and Fremantle Primary School Park playground upgrades were progressed

for implementation over the following years.

Parks and Landscapes services have concentrated on developing working relationships with

community members involved in park and natural area management. This was particularly

successful with the playspace program, the extensive native planting works along the link

between South Beach, Hollis Park and Clontarf Hill and the many rehabilitation projects

along the coastal reserves in conjunction with Coastcare and Green Army volunteers.

Guidance for those wishing to start a community garden and increased participation in park

developments has seen greater ownership by the community of public spaces.

In addition, there has been an expansion of support services for the many great festivals,

events and activities held in Fremantle. Much work goes into preparing and restoring parks

and streetscapes to accommodate the large numbers of City visitors. The Esplanade Park in

particular is undergoing a series of upgrades and improvements and in 2014-15 extra

resources were injected into the Esplanade Youth Plaza, pathways and turf maintenance.

The City continues to work with the Fremantle BID to assist businesses with their aims to

attract people to the City of Fremantle and with the sports ground users to keep the grounds

subjected to seasonal wear and use, in a safe and healthy condition.

Contamination issues at several project sites threatened to extend timeframes and budgets,

but were overcome with detailed investigation, compliant site management plans and more

streamlined works and execution processes. Much of this planning work will assist with

executing future park projects.

Officers are actively involved in working groups, such as the five member Council South

West Region Natural Area Management (NRM) group and Cockburn Coastal Alliance for

projects such as restoring threatened black cockatoo habitat, controlling pest rabbits and

foxes, developing coastal adaption planning and stabilising the foreshore fringe with

structural and vegetation management works.

The City continued with the chemical free weed control program in streets and footpaths.

Coastcare WA supports the volunteer dune rehabilitation program and funds the coordinator

and materials used. Funds as cash in lieu of public open space in development also boosted

the parks capital program with funds for Davis Park refurbishments and the Walker Street

bore replacement.

South Fremantle 99 3 050 3.2

White Gum Valley 137 2 703 5.1

City of Fremantle 1 380 26 960 5.1

STATUTORY REPORTING

National competition policy and public interest disclosure

The City has met its obligations with regard to the national competition policy and continues

to monitor the introduction of local laws and council policies to ensure anti-competitive

practices are not adopted. No complaints were received in relation to anti-competitive

practice in the reporting period.

No disclosures have been reported to the City of Fremantle under the Public Interest

Disclosure Act 2003 within this reporting period.

Register of complaints statement

For the purpose of the Local Government Act 1995, Section 5.121, no complaints were

made to the City of Fremantle in the reporting period.

37 employees were entitled to an annual cash salary of $100 000 or more

Salary range

$100 000 $109 999 9

$110 000 $119 999 6

$120 000 $129 999 7

$130 000 $139 999 –

$140 000 $149 999 4

$150 000 $159 999 4

$160 000 $169 999 1

$170 000 $179 999 1

$180 000 $189 999 2

$190 000 $199 999 1

$200 000 $249 999 1

$250 000 $259 999 1

37

Plan for the future

The implementation of the City of Fremantle Corporate Business and Long Term Financial

Plans provide the framework for the City to deliver the strategic imperatives from the City of

Fremantle Strategic Plan 2010-15.

The long term financial plan provides strong financial direction to deliver the projects and

programs identified in the corporate business plan. The plan includes financial commitment

to infrastructure programs, capital works projects including upgrades to a range of heritage

listed buildings, arts and community programs and sustainability initiatives.

As the City of Fremantle Strategic Plan 2010-2015 comes to an end the City has completed

the Fremantle 2029: Community Visioning Project and is in the process of developing a

strategic community plan which will guide the City's strategic direction for the next ten years.

The corporate business plan underwent a minor review in accordance with the requirements

under the Integrated Planning and Reporting framework. The plan transitioned from the

2013-17, to 2014-18. Activities and projects that were completed in the 2013-14 year were

removed, and new and continuing activities and projects were added.

Significant achievements aligned to the current strategic plan that have occurred in this

reporting year include:

Economic development

Activities from the High Street Mall revitalisation plan commenced.

Lease negotiated for a proposed wave pool “Flowhouse Fremantle” at Port Beach.

New lease negotiated for the Leighton Beach kiosk.

Short-term activation of the Queensgate building (as long-term tenants vacate in

preparation for the Kings Square project).

Lease negotiations were concluded for Sunset Venues for use of Unit 1, J Shed as a

music, arts and hospitality hub.

Lease renewals were negotiated for Salt Restaurant at Port Beach, Kidogo Art House

and Japingka Art Gallery.

Urban renewal and integration

Freo 2029 Transformational Moves adopted

Booyeembara Park Masterplan adopted

Council endorsed the Victoria Quay Precinct Plan, which has been lodged with the

Western Australian Planning Commission.

Climate change and environmental protection

Green Plan Working Group established to review the City of Fremantle Green Plan

2001.

Activities from the One Planet action plan delivered

Transport

Integrated transport strategy adopted

Ensure Council's position on the Perth Freight Link is submitted to Main Roads.

Character

Upgrades and renewal of many of the City's heritage buildings

Community safety

Community safety working group established to develop a new community safety

plan

Capability

The City participated in all reform activities, however the push for reform by the state

government was abandoned.

Community perceptions survey conducted

Pulse newsletter released

Records management

Under the State Records Act 2000 the City of Fremantle is required to provide an annual

report as outlined in the record-keeping plan.

Commitment to records management

The City is committed to records management and has adopted a policy that all records are

to be managed in an efficient and effective manner, at a cost commensurate with

operational, information and legislative requirements.

This is to enhance retrieval and ensure integrity, physical safety and security, as well as

supporting the City of Fremantle’s compliance with record-keeping legislation, best practice

standards and privacy principles.

Record-keeping training program

Compulsory training is conducted once a month for all new employees in relation to the roles

and responsibilities of records management and the City’s electronic document records

management system, Enterprise Content Management (ECM). Refresher training is also

offered on a one-on-one basis and 20 ECM Support Workers offer help and support to their

co-workers as required.

A power-point presentation is showcased during the training outlining record-keeping roles

and responsibilities, along with supporting case studies to ensure a good understanding is

ascertained at the onset of employment. The training program, procedures and records

processes were again reviewed this year and updated accordingly to incorporate new

procedures due to an upgrade of the system.

To indicate the City’s awareness, the statistics below highlight the number of documents

placed into ECM during each financial year, since its implementation in September 2002:

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Total documents

recorded

47 178 72 872 73 403 82 836 91 290 114 732 104 695

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

93 549

111 962 122 761 140,343 135 059 132 394

Record-keeping audit

A record-keeping audit of the community development directorate will be conducted during

November 2015.

Initiatives started or completed in the last 12 months

ECM 4.03 upgrade was successfully installed into production.

Full review of the record keeping plan accepted by State Records office.

Fifteen Freedom of Information applications were assessed.

63 240 litre bins of documents were destroyed that were due for destruction.

DISABILITY ACCESS AND INCLUSION PLAN (DAIP)

A profile of disability in Fremantle

Striving towards best practice in access and inclusion in the Fremantle community through

the City of Fremantle Disability Access and Inclusion Plan (DAIP) continues to be at the core

of a set of strategies aiming to achieve the objectives of the City of Fremantle Strategic Plan

2010–15.

The 2012 survey of disability, ageing and carers (SDAC) estimated that 4.2 million

Australians, or 18.5% of the population, had a disability.

SDAC defines disability as any limitation, restriction or impairment which restricts everyday

activities and has lasted, or is likely to last, for at least six months. In 2012 the prevalence of

disability in Australia remained steady at 18.5% compared with 2009 (when the survey was

last conducted).

People in need of assistance due to disability in the City of Fremantle (2011)

City of Fremantle – enumerated

Area Number Total population Percent %

Beaconsfield 240 4 555 5.3

Fremantle 383 8 308 4.6

Hilton - O'Connor 317 3 813 8.3

North Fremantle 90 2 661 3.4

Samson 100 1 876 5.3

Achievements under the DAIP

The City is committed to facilitating the inclusion of people with disabilities through the

improvement of access and inclusion to its services and facilities. Each area of council is

responsible for planning, implementing, ongoing monitoring and reporting within its own

area. The disability access officer has an advisory, support and coordination role and is

responsible for ensuring statutory reporting is carried out.

In 2014–15 the City continues to strive towards best practice in access and inclusion with

outcomes being achieved through the DAIP implementation plan.

The City has carried out building condition and compliance audits to all its buildings and

developed a report of universal accessible non-compliant facilities to be used for future

remedial works of access to facilities.

The City has installed a footpath to provide access for all to the Arthurs Head public toilet

facility, and completed an upgrade to the Fremantle Art Centre toilet facilities with the

construction of an additional universal accessible toilet cubicle. A new public toilet facility is

currently under construction at Leighton Beach, providing universal accessible facilities for all.

The play space at Davis Park, Beaconsfield was upgraded and included an accessible

pathway. A liberty swing for children and adults in wheelchairs is available at Gordon

Dedman Reserve in North Fremantle.

The council developed a new website which includes minimum WCAG 2.0AA compliance for

accessibility.

The City's recruitment process promotes a workplace that actively seeks to include,

welcome and value unique contributions of all people. It also engages not for profit

specialist organisations that provide employment services for individuals living in our

community with disabilities.

The City employed two full time employees under a specifically funded program for disability

employment in 2014–15 and eight new employees declared a disability on the diversity

questionnaire

The City provided information and encouragement to raise awareness regarding disability,

access and inclusion through the ANZAC events promotions. The ANZAC website was

designed to be disability accessible.

The City held an Access all Abilities event at the Esplanade Youth plaza and information

stalls were provided

An Auslan interpreter and visual aids were available for participants of the Champion Clubs

Super Workshop. Intro to inclusion training runs as part of the super clubs workshop.

The City implemented a disability drop off and assist service for events at Monument Hill.

The Fremantle Volunteer Service provides training and information about volunteering to:

Rocky Bay (Disability access)

Ngatti House (youth mental health)

Alma Street(adult mental health)

Edge (Disability services).

And recruits volunteers for:

Cystic Fibrosis WA

Dadaa

VisAbility

The Multiple Sclerosis Society of WA.

The Fremantle City Library provides collections in a large range of formats and has an easy

read machine that enables print magnification or print to audio options for sight impaired

people to access traditional print material. The library also provides a home bound delivery

service.

The Fremantle Leisure Centre has access/egress ramps into swimming pools, hydraulic pool

hoist and aquatic wheel chair suitable for adults and children, and offers learn to swim

classes for people with special needs.

It has a fully functional disability change room facility which includes change table and hoist.

RECLINK Australia agencies are offered discounted membership that entitles their members

to use the gym and swimming pools,

The Samson Recreation Centre supports a disability inclusion group that play table tennis

and soccer twice a week.

The Walyalup Aboriginal Cultural centre has wheelchair access and provides free art

programs to people with disabilities and their carers.

10 Kings Park Road

West Perth WA 6005

PO Box 570

West Perth WA 6872

T +61 8 9480 2000

F +61 8 9322 7787

E [email protected]

W www.grantthornton.com.au

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the

context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm

is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and

are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its

Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

INDEPENDENT AUDITOR’S REPORT TO THE RATEPAYERS

OF THE CITY OF FREMANTLE

Report on the Financial Report

We have audited the accompanying financial report of the City of Fremantle, which

comprises the statement of financial position as at 30 June 2015, and the statement of

comprehensive income, statements of changes in equity, and statements of cash flows for

the year ended 30 June 2015, a summary of significant accounting policies and other

explanatory notes, and the Chief Executive Officer’s statement.

Council responsibility for the financial report

The Council of the City of Fremantle is responsible for the preparation and fair presentation

of the financial report in accordance with Australian Accounting Standards (including the

Australian Accounting Interpretations) and the Local Government Act 1995 Part 6. This

responsibility includes establishing and maintaining internal control relevant to the

preparation and fair presentation of the financial report that is free from material

misstatement, whether due to fraud or error; selecting and applying appropriate accounting

policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We

conducted our audit in accordance with Australian Auditing Standards. These Auditing

Standards require that we comply with relevant ethical requirements relating to audit

engagements and plan and perform the audit to obtain reasonable assurance whether the

financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial report. The procedures selected depend on the auditor’s

judgement, including the assessment of the risks of material misstatement of the financial

report, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the

financial report in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by the Council, as well as

evaluating the overall presentation of the financial report.

We performed the procedures to assess whether in all material respects the financial report

presents fairly, in accordance with the Local Government Act 1995 Part 6 and Australian

Accounting Standards (including the Australian Accounting Interpretations), a view which is

consistent with our understanding of the City of Fremantle’s financial position and of their

performance.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our audit opinion.

Independence

In conducting our audit, we followed applicable independence requirements of Australian

professional ethical pronouncements.

Auditor’s opinion on the financial report

In our opinion, the financial report of the City of Fremantle: (i) presents fairly of the City of Fremantle’s financial position as at 30 June 2015 and

of its performance for the financial year ended 30 June 2015, and (ii) complies with Australian Accounting Standards (including the Australian

Accounting Interpretations), (iii) are prepared in accordance with the requirements of the Local Government Act

1995 Part 6 (as amended) and Regulations under that Act.

Statutory Compliance

I did not, during the course of my audit, become aware of any instance where the Council

did not comply with the requirements of the Local Government Act 1995 and Local

Government (Financial Management) Regulations 1996 as they apply to financial

statements.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants M J Hillgrove Partner – Audit & Assurance Perth, 6 November 2015

FINANCIAL REPORT

FOR THE YEAR ENDED 30TH JUNE 2015

TABLE OF CONTENTS

Statement by Chief Executive Officer 2

Statement of Comprehensive Income by Nature or Type 3

Statement of Comprehensive Income by Program 4 to 5

Statement of Financial Position 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Rate Setting Statement by Program 9

Rate Setting Statement by Nature or Type 10

Notes to and Forming Part of the Financial Report 11 to 71

Independent Audit Report 72 to 73

Principal place of business:

Town Hall Centre

8 William Street

Fremantle WA 6160

CITY OF FREMANTLE

CITY OF FREMANTLE

FINANCIAL REPORT


LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the City of Fremantle being the annual financial report and

other information for the financial year ended 30 June 2015 are in my opinion properly drawn

up to present fairly the financial position of the City of Fremantle at 30th June 2015 and the

results of the operations for the financial year then ended in accordance with the Australian

Accounting Standards and comply with the provisions of the Local Government Act 1995 and

the regulations under that Act.

Signed as authorisation of issue on the 6th day of November 2015

__________________________

Graeme Mackenzie

Chief Executive Officer

Page 2

CITY OF FREMANTLE

STATEMENT OF COMPREHENSIVE INCOME

BY NATURE OR TYPE


NOTE 2015 2015 2014

$ Budget $

$

Revenue

Rates 26 (a) 38,076,535 38,158,146 35,970,246

Operating grants, subsidies and

contributions 32 5,679,736 4,713,617 4,552,675

Fees and charges 31 25,384,773 25,409,733 23,749,221

Service charges 28 (3,274) - -

Interest earnings 2(a) 1,896,670 1,940,754 1,694,154

Other revenue 392,232 146,524 233,008

71,426,672 70,368,774 66,199,304

Expenses

Employee costs (34,468,872) (35,075,223) (31,418,335)

Materials and contracts (24,182,805) (23,083,280) (22,834,776)

Utility charges (1,806,339) (1,769,292) (1,719,411)

Depreciation on non-current assets 2(a) (7,425,363) (7,332,019) (7,337,837)

Interest expenses 2(a) (553,103) (539,464) (477,756)

Insurance expenses (784,125) (878,565) (801,937)

Other expenditure (1,850,007) (1,865,627) (1,842,850)

(71,070,614) (70,543,470) (66,432,902)

356,058 (174,696) (233,598)

Non-operating grants, subsidies and

contributions 32 2,025,218 3,230,135 3,043,455

Fair value adjustments to financial assets at

fair value through profit or loss

Revaluation of Intangibles - - (173,884)

Revaluation of Investment Land - - 261,238

Profit on asset disposals 24 - 4,200,000 431,964

Loss on asset disposals 24 (204,099) (1,169,133) (1,046,303)

Joint Venture - Change on Equity 19 344,001 - 196,746

Net result 2,521,178 6,086,306 2,479,618

Other comprehensive income

Changes on revaluation of non-current assets

Infrastructure 15 6,480,873 - (5,472,334)

Property, Plant & Equipment 15 688,493 - (3,621,364)

Total other comprehensive income 7,169,366 - (9,093,698)

Total comprehensive income 9,690,544 6,086,306 (6,614,080)

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

Page 3

CITY OF FREMANTLE

BY PROGRAM


NOTE 2015 2015 2014

$ Budget $

$

Revenue

Governance 440,882 190,670 288,600

General purpose funding 41,697,442 41,224,490 38,296,916

Law, order, public safety 2,379,740 2,318,500 2,327,270

Health 472,121 491,000 473,034

Education and welfare 2,158,020 2,072,595 1,907,200

Housing 44,585 - 84,095

Community amenities 1,758,596 1,778,900 1,801,473

Recreation and culture 6,748,348 6,529,999 4,813,818

Transport 11,070,286 11,564,880 11,705,482

Economic services 600,678 540,040 500,770

Other property and services 4,055,974 3,657,700 4,000,646

71,426,672 70,368,774 66,199,304

Expenses

Governance (5,017,854) (4,675,803) (5,061,823)

General purpose funding (1,110,760) (1,234,527) (998,455)

Law, order, public safety (4,469,961) (4,355,419) (4,124,202)

Health (911,307) (891,187) (851,750)

Education and welfare (4,776,717) (5,109,018) (4,699,859)

Housing (92,474) (56,813) (128,340)

Community amenities (11,239,879) (12,016,727) (11,146,576)

Recreation and culture (19,702,820) (19,629,723) (17,254,676)

Transport (17,524,967) (16,735,081) (16,715,870)

Economic services (2,459,141) (2,442,166) (2,237,160)

Other property and services (3,211,631) (2,857,542) (2,736,435)

(70,517,511) (70,004,006) (65,955,146)

Finance costs

Governance (29,533) (13,645) (17,628)

General purpose funding - - -

Law, order, public safety - - -

Health - - -

Education and welfare (28,880) (29,190) (45,388)

Housing - - -

Community amenities - - -

Recreation and culture (20,484) (20,571) (25,373)

Transport (441,230) (442,957) (352,440)

Economic services - - -

Other property and services (32,976) (33,101) (36,927)

(553,103) (539,464) (477,756)



General purpose funding - - -

- - -


Page 4

CITY OF FREMANTLE


BY PROGRAM


NOTE 2015 2015 2014

$ Budget $

$

Non-operating grants, subsidies and

contributions

Law, order, public safety 4,672 - 70,000

Education and welfare 32,937 - 108,296

Recreation and culture 655,204 1,016,571 1,792,489

Transport 1,327,405 1,227,564 1,072,670

Other property and services 5,000 986,000 -

32 2,025,218 3,230,135 3,043,455

Profit/(Loss) on disposal of assets

Governance (139,802) 399,507 (78,295)

Law, order, public safety 255 876 (964)

Health (1,972) 1,502 -

Education and welfare (663) 7,002 4,944

Housing - - (1,046,646)

Community amenities - - 3,321

Recreation and culture (54,494) (1,992) (4,014)

Transport - 9,500,000 312,209

Economic services - - -

Other property and services (7,423) (6,876,028) 195,106

24 (204,099) 3,030,867 (614,339)



Governance - - (154,753)

Transport - - 261,238

Recreation Culture - - (19,131)

- - 87,354

Joint Venture - Change on Equity

Governance 19 344,001 - 196,746

Net result 2,521,178 6,086,306 2,479,618

Other comprehensive income

Revaluation of

Infrastructure 15 6,480,873 - (5,472,334)

Property, Plant & Equipment 15 688,493 - (3,621,364)

Total other comprehensive income 7,169,366 - (9,093,698)

Total comprehensive income 9,690,544 6,086,306 (6,614,080)


Page 5

CITY OF FREMANTLE

STATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE 2015

NOTE 2015 2014

$ $

CURRENT ASSETS

Cash and cash equivalents 3 45,008,107 39,450,065

Trade and other receivables 6 2,353,989 3,002,363

Inventories 5 178,763 170,339

TOTAL CURRENT ASSETS 47,540,859 42,622,767

NON-CURRENT ASSETS

Other receivables 6 427,620 951,998

Investments 4 2,445,405 2,101,404

Property, plant and equipment 7 205,272,820 193,952,953

Investment Property 8 48,514,989 50,535,000

Infrastructure 9 229,941,751 222,796,801

Intangible Assets 10 6,300 8,700

TOTAL NON-CURRENT ASSETS 486,608,885 470,346,856

TOTAL ASSETS 534,149,744 512,969,623

CURRENT LIABILITIES

Trade and other payables 11 10,554,853 8,928,605

Current portion of long term borrowings 12 2,471,326 1,491,418

Provisions 13 6,596,638 5,760,704

TOTAL CURRENT LIABILITIES 19,622,817 16,180,727

NON-CURRENT LIABILITIES

Long term borrowings 12 17,816,593 9,737,890

Provisions 13 916,232 947,448

TOTAL NON-CURRENT LIABILITIES 18,732,825 10,685,338

TOTAL LIABILITIES 38,355,642 26,866,065

NET ASSETS 495,794,102 486,103,558

EQUITY

Retained surplus 141,346,341 139,227,734

Reserves - cash/investment backed 14 25,834,023 25,431,452

Revaluation surplus 15 328,613,738 321,444,372

TOTAL EQUITY 495,794,102 486,103,558


Page 6

CITY OF FREMANTLE

STATEMENT OF CHANGES IN EQUITY


RESERVES

RETAINED CASH/INVESTMENT REVALUATION TOTAL

NOTE SURPLUS BACKED SURPLUS EQUITY

$ $ $ $

Balance as at 1 July 2013 144,008,396 18,171,172 330,538,070 492,717,638

Comprehensive income

Net result 2,479,618 - - 2,479,618

Changes on revaluation of non-current assets - - (9,093,698) (9,093,698)

Total comprehensive income 2,479,618 - (9,093,698) (6,614,080)

Transfers from/(to) reserves (7,260,280) 7,260,280 - -

Balance as at 30 June 2014 139,227,734 25,431,452 321,444,372 486,103,558

Comprehensive income

Net result 2,521,178 - - 2,521,178

Changes on revaluation of non-current assets 15 - - 7,169,366 7,169,366

Total comprehensive income 2,521,178 - 7,169,366 9,690,544

Transfers from/(to) reserves (402,571) 402,571 - -

Balance as at 30 June 2015 141,346,341 25,834,023 328,613,738 495,794,102


Page 7

CITY OF FREMANTLE

STATEMENT OF CASH FLOWS


NOTE 2015 2015 2014

$ Budget $

CASH FLOWS FROM OPERATING ACTIVITIES $

Receipts

Rates 38,023,253 38,158,146 36,221,948

Operating grants, subsidies and

contributions 5,960,819 4,713,617 4,232,226

Fees and charges 25,384,773 25,409,733 23,749,221

Service charges (3,274) - -

Interest earnings 1,896,670 1,940,754 1,694,154

Goods and services tax 414,714 4,900,000 (627,342)

Other revenue 392,232 146,524 233,008

72,069,187 75,268,774 65,503,215

Payments

Employee costs (33,448,757) (35,075,223) (30,904,252)

Materials and contracts (22,236,503) (23,741,176) (22,875,756)

Utility charges (1,806,339) (1,769,292) (1,719,411)

Interest expenses (549,116) (539,464) (492,731)

Insurance expenses (784,125) (878,565) (801,937)

Goods and services tax (547,862) (2,300,000) 633,714

Other expenditure (1,850,007) (1,865,627) (1,842,850)

(61,222,709) (66,169,347) (58,003,223)

Net cash provided by (used in)

operating activities 16(b) 10,846,478 9,099,427 7,499,992

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for purchase of

property, plant & equipment (13,888,472) (17,585,724) (9,133,810)

Payments for purchase of

investment property (579,989) (805,600) (263,763)

Payments for construction of

infrastructure (5,027,010) (6,858,085) (6,808,252)

Non-operating grants,

Subsidies and contributions 2,025,218 3,230,135 3,043,455

Proceeds from sale of fixed assets 2,592,969 38,652,999 10,755,511

Net cash provided by (used in)

investment activities (14,877,284) 16,633,725 (2,406,859)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of debentures (1,821,419) (1,491,418) (1,421,436)

Proceeds from self supporting loans 530,237 200,236 134,063

Proceeds from new debentures 10,880,030 10,658,030 3,350,000

Net cash provided by (used In)

financing activities 9,588,848 9,366,848 2,062,627

Net increase (decrease) in cash held 5,558,042 35,100,000 7,155,760

Cash at beginning of year 39,450,065 39,000,000 32,294,305

Cash and cash equivalents

at the end of the year 16(a) 45,008,107 74,100,000 39,450,065


Page 8

CITY OF FREMANTLE

RATE SETTING STATEMENT


2015 2015 2014NOTE Actual Budget Actual

$ $ $

Revenue

Governance 645,081 590,177 407,121

General purpose funding 3,758,292 3,204,344 2,461,998

Law, order, public safety 2,384,667 2,319,376 2,396,306

Health 470,149 492,502 473,034

Education and welfare 2,190,294 2,079,597 2,020,440

Housing 44,585 - 83,668

Community amenities 1,758,596 1,778,900 1,804,794

Recreation and culture 7,349,058 7,544,578 6,602,306

Transport 12,397,691 22,292,444 13,090,362

Economic services 600,678 540,040 500,770

Other property and services 4,053,551 (2,232,328) 4,456,990

35,652,642 38,609,630 34,297,789

Expenses

Governance (5,047,387) (4,689,448) (5,234,274)

General purpose funding (1,110,760) (1,234,527) (998,455)

Law, order, public safety (4,469,961) (4,355,419) (4,124,202)

Health (911,307) (891,187) (851,750)

Education and welfare (4,805,597) (5,138,208) (4,745,247)

Housing (92,474) (56,813) (1,174,559)

Community amenities (11,239,879) (12,016,727) (11,146,576)

Recreation and culture (19,723,304) (19,650,294) (17,299,193)

Transport (17,966,197) (17,178,038) (17,068,311)

Economic services (2,459,141) (2,442,166) (2,237,160)

Other property and services (3,244,607) (2,890,643) (2,773,362)

(71,070,614) (70,543,470) (67,653,089)

Net result excluding rates (35,417,972) (31,933,840) (33,355,300)

Adjustments for cash budget requirements:

Non-cash expenditure and revenue

(Profit)/Loss on asset disposals 24 204,099 (3,030,867) 614,339

Depreciation on assets 2(a) 7,425,363 7,332,019 7,337,837

Impairment/Amortisation of Lessee Works (12,964) - (126,246)

Joint Venture - Change on Equity (344,001) - (196,746)

Capital Expenditure and Revenue

Purchase Land and Buildings 7(b) (12,772,549) (16,583,076) (7,174,598)

Purchase Investment Property 8(b) (579,989) (805,600) (263,763)

Purchase Infrastructure Assets - All 9(b) (5,027,010) (6,858,085) (6,808,252)

Purchase Vehicles and Heavy Plant 7(b) (691,082) (730,580) (949,081)

Purchase Furniture, Plant and Equipment 7(b) (366,854) (254,558) (992,081)

Purchase Art Collection 7(b) (57,987) (17,510) (18,050)

Proceeds from Disposal of Assets 24 2,592,969 38,652,999 10,755,511

Repayment of Debentures 25(a) (1,821,419) (1,491,418) (1,421,436)

Proceeds from New Debentures 25(b) 10,880,030 10,658,030 3,350,000

Self-Supporting Loan Principal Income 6(a) 530,238 200,236 134,063

Transfers to Reserves (Restricted Assets) 14 (3,519,870) (39,503,504) (14,203,711)

Transfers from Reserves (Restricted Assets) 14 3,117,299 4,475,661 6,943,431

ADD Estimated surplus/(deficit) July 1 b/fwd 26(b) 1,856,988 1,969,947 2,396,153

LESS Estimated surplus/(deficit) June 30 c/fwd 26(b) 3,934,439 100,000 1,856,988

Total amount raised from general rate 26(a) (37,939,150) (38,020,146) (35,834,918)


Page 9

CITY OF FREMANTLE

RATE SETTING STATEMENT


2015 2015 2014

NOTE Actual Budget Actual

$ $ $

REVENUE

Service Charges (Underground Power) (3,274) - -

Operating Grants and Subsidies 32 5,679,736 4,713,617 4,552,675

Capital Grants and Subsidies/Contributions

for the Development of Assets 32 2,025,218 3,230,135 3,043,455

Fees and Charges 31 25,384,773 25,409,733 23,749,221

Interest Earnings 2(a) 1,896,670 1,940,754 1,694,154

Profit on Sale of Assets 24 - 4,200,000 431,964

Other Revenue 736,233 146,524 690,992

35,719,356 39,640,763 34,162,461

EXPENSES

Employee Costs (34,468,872) (35,075,223) (31,418,335)

Materials and Contracts (24,182,805) (23,083,280) (22,834,776)

Depreciation on Non Current Assets 2(a) (7,425,363) (7,332,019) (7,337,837)

Interest Expenses 2(a) (553,103) (539,464) (477,756)

Utilities (1,806,339) (1,769,292) (1,719,411)

Loss on Sale of Assets 24 (204,099) (1,169,133) (1,046,303)

Insurance Expenses (784,125) (878,565) (801,937)

Other Expenditure (1,850,007) (1,865,627) (2,016,734)

(71,274,713) (71,712,603) (67,653,089)

Net Operating Result Excluding Rates (35,555,357) (32,071,840) (33,490,628)

Adjustments for Cash Budget Requirements:

Non-Cash Expenditure and Revenue

(Profit)/Loss on Asset Disposals 24 204,099 (3,030,867) 614,339

Depreciation 2(a) 7,425,363 7,332,019 7,337,837

Impairment/Amortisation of Lessee Works (12,964) - (126,246)

Change of Equity-SMRC 19 (344,001) - (196,746)

Capital Expenditure and Revenue

Purchase Land and Buildings 7(b) (12,772,549) (16,583,076) (7,174,598)

Purchase Investment Property 8(b) (579,989) (805,600) (263,763)

Purchase Infrastructure Assets - All 9(b) (5,027,010) (6,858,085) (6,808,252)

Purchase Vehicles and Heavy Plant 7(b) (691,082) (730,580) (949,081)

Purchase Furniture, Plant and Equipment 7(b) (366,854) (254,558) (992,081)

Purchase Art Collection 7(b) (57,987) (17,510) (18,050)

Proceeds from Disposal of Assets 24 2,592,969 38,652,999 10,755,511

Repayment of Debentures 25(a) (1,821,419) (1,491,418) (1,421,436)

Proceeds from New Debentures 25(b) 10,880,030 10,658,030 3,350,000

Self-Supporting Loan Principal Income 6(a) 530,238 200,236 134,063

Transfers to Reserves (Restricted Assets) 14 (3,519,870) (39,503,504) (14,203,711)

Transfers from Reserves (Restricted Assets) 14 3,117,299 4,475,661 6,943,431

ADD Estimated Surplus/(Deficit) July 1 B/Fwd 26(b) 1,856,988 1,969,947 2,396,153

LESS Estimated Surplus/(Deficit) June 30 C/Fwd 26(b) 3,934,439 100,000 1,856,988

Amount Required to be Raised from Rates 26(a) (38,076,535) (38,158,146) (35,970,246)


Page 10

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The financial report comprises general purpose financial statements which have been prepared in

accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit

entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian

Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material

accounting policies which have been adopted in the preparation of this financial report are presented

below and have been consistently applied unless stated otherwise.

Except for cash flow and rate setting information, the report has been prepared on the accrual basis

and is based on historical costs, modified, where applicable, by the measurement at fair value of selected

non-current assets, financial assets and liabilities.

Critical accounting estimates

The 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 be reasonable under the circumstances; the results of which form the basis of making

the judgements about carrying values of assets and liabilities that are not readily apparent from other

sources. Actual results may differ from these estimates.

The local government reporting entity

All Funds through which the City of Fremantle controls resources to carry on its functions have been included

in the financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balances

between those Funds (for example, loans and transfers between Funds) have been eliminated.

All monies held in the Trust Fund are excluded from the financial statements. A separate statement of

those monies appears at Note 22 to these financial statements.

(b) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of

GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST receivable or payable.

The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables

in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or

financing activities which are recoverable from, or payable to, the ATO are presented as operating

cash flows.

(c) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with

banks and other short term highly liquid investments that are readily convertible to known amounts of

cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial

position.

CITY OF FREMANTLE

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT


Page 11

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(d) Trade and Other Receivables

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges

and other amounts due from third parties for goods sold and services performed in the ordinary course

of business.

Receivables expected to be collected within 12 months of the end of the reporting period are classified

as current assets. All other receivables are classified as non-current assets.

Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be

uncollectible are written off when identified. An allowance for doubtful debts is raised when there is

objective evidence that they will not be collectible.

(e) Inventories

General

Inventories are measured at the lower of cost and net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated

costs of completion and the estimated costs necessary to make the sale.

Land held for sale

Land held for development and sale is valued at the lower of cost and net realisable value. Cost includes

the cost of acquisition, development, borrowing costs and holding costs until completion of development.

Finance costs and holding charges incurred after development is completed are expensed.

Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if

significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.

Land held for sale is classified as current except where it is held as non-current based on the Council’s

intentions to release for sale.

(f) Fixed Assets

Each class of fixed assets within property, plant and equipment, investment property or infrastructure, is carried

at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Mandatory requirement to revalue non-current assets

Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and

the measurement of non-current assets at Fair Value became mandatory.

The amendments allow for a phasing in of fair value in relation to fixed assets over three years as follows:

(a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local government

that are plant and equipment; and

(b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local government -

(i) that are plant and equipment; and

(ii) that are -

(I) land and buildings; or-

(II) Infrastructure; and

(c) for a financial year ending on or after 30 June 2015, the fair value of all of the assets of the local

government.

Thereafter, in accordance with the regulations, each asset class must be revalued at least every 3 years.

The city has been using fair value for a number of years and in 2013 commenced the process of undertaking

fair value in accordance with the timetable prescribed in the Regulations.

Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been

made in the financial report as necessary.

CITY OF FREMANTLE



Page 12


(f) Fixed Assets (Continued)

Land under control

In accordance with Local Government (Financial Management) Regulation 16(a), the City of Fremantle was required

to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course,

showground, racecourse or other sporting or recreational facility of State or Regional significance.

Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were

then classified as Land and revalued along with other land in accordance with the other policies detailed

in this Note.

Initial recognition and measurement between mandatory revaluation dates

All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory

measurement framework detailed above.

In relation to this initial measurement, cost is determined as the fair value of the assets given as

consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal

consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets

constructed by the City of Fremantle includes the cost of all materials used in construction, direct labour on the

project and an appropriate proportion of variable and fixed overheads.

Individual assets acquired between initial recognition and the next revaluation of the asset class in

accordance with the mandatory measurement framework detailed above, are carried at cost less

accumulated depreciation as management believes this approximates fair value. They will be subject to

subsequent revaluation at the next anniversary date in accordance with the mandatory measurement

framework detailed above.

Revaluation

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in

equity. Decreases that offset previous increases of the same asset are recognised against revaluation

surplus directly in equity. All other decreases are recognised in profit or loss.

Land under roads

In Western Australia, all land under roads is Crown Land, the responsibility for managing which, is

vested in the local government.

Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired

on or before 30 June 2008. This accords with the treatment available in Australian Accounting

Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management)

Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.

In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government

(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land

as an asset.

Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government

(Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local

Government (Financial Management) Regulations prevail.

Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the

City of Fremantle.

CITY OF FREMANTLE



Page 13


(f) Fixed Assets (Continued)

Depreciation

The depreciable amount of all fixed assets including buildings but excluding investment land and buildings,

freehold land, are depreciated on a straight-line basis over the individual asset’s useful life from the time the

asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired

period of the lease or the estimated useful life of the improvements.

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of

the revaluation is treated in one of the following ways:

a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying

amount of the asset after revaluation equals its revalued amount; or

b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued

amount of the asset.

Major depreciation periods used for each class of depreciable asset are:

Buildings 40 years

Furniture and Equipment 10 years

Fleet 10 years

Computer Hardware 5 years

Intangible Assets (Computer Software) 5 years

Infrastructure Roads

Pavement Formation n/a

Pavement Structure 130 years

Pavement Surface 35 years

Surface Water Channel 20 years

Infrastructure Footpaths 30 years

Infrastructure Drainage 40 years

Infrastructure Parks & Reserves 60 years

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each

reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying

amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.

These gains and losses are included in the statement of comprehensive income in the period in which

they arise.

Capitalisation threshold

Assets are capitalised at cost or where acquired for at no or nominal cost at fair value. Items

whose cost or fair value is less than the thresholds below are expensed in the year of acquisition:

Freehold Land and Buildings No Limit

Vehicles, Plant and Equipment $1,000

Intangibles $1,000

Art Collection No Limit

Infrastructure No Limit

CITY OF FREMANTLE



Page 14


(g) Fair Value of Assets and Liabilities

When performing a revaluation, the City of Fremantle uses a mix of both independent and management valuations

using the following as a guide:

Fair Value is the price that the City of Fremantle would receive to sell the asset or would have to pay to transfer a

liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market

participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is

used to determine fair value. Adjustments to market values may be made having regard to the

characteristics of the specific asset or liability. The fair values of assets that are not traded in an active

market are determined using one or more valuation techniques. These valuation techniques maximise, to

the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or

liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the

absence of such a market, the most advantageous market available to the entity at the end of the

reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into

account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability

to use the asset in its highest and best use or to sell it to another market participant that would use the

asset in its highest and best use.

Fair value hierarchy

AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which

categorises fair value measurement into one of three possible levels based on the lowest level that an

input that is significant to the measurement can be categorised into as follows:

Level 1

Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities

that the entity can access at the measurement date.

Level 2

Measurements based on inputs other than quoted prices included in Level 1 that are observable for the

asset or liability, either directly or indirectly.

Level 3

Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or

more valuation techniques. These valuation techniques maximise, to the extent possible, the use of

observable market data. If all significant inputs required to measure fair value are observable, the asset or

liability is included in Level 2. If one or more significant inputs are not based on observable market data,

the asset or liability is included in Level 3.

Valuation techniques

The City of Fremantle selects a valuation technique that is appropriate in the circumstances and for which sufficient

data is available to measure fair value. The availability of sufficient and relevant data primarily depends on

the specific characteristics of the asset or liability being measured. The valuation techniques selected by

the City of Fremantle are consistent with one or more of the following valuation approaches:

Market approach

Valuation techniques that use prices and other relevant information generated by market transactions for

identical or similar assets or liabilities.

CITY OF FREMANTLE



Page 15


(g) Fair Value of Assets and Liabilities (Continued)

Income approach

Valuation techniques that convert estimated future cash flows or income and expenses into a single

discounted present value.

Cost approach

Valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use

when pricing the asset or liability, including assumptions about risks. When selecting a valuation

technique, the City of Fremantle gives priority to those techniques that maximise the use of observable inputs and

minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly

available information on actual transactions) and reflect the assumptions that buyers and sellers would

generally use when pricing the asset or liability are considered observable, whereas inputs for which

market data is not available and therefore are developed using the best information available about such

assumptions are considered unobservable.

As detailed above, the mandatory measurement framework imposed by the Local Government

(Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to

be revalued at least every 3 years.

(h) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the City of Fremantle becomes a party to the

contractual provisions to the instrument. For financial assets, this is equivalent to the date that the

City of Fremantle commits itself to either the purchase or sale of the asset (i.e. trade date accounting is

adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the

instrument is classified 'at fair value through profit or loss', in which case transaction costs are

expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective

interest rate method, or at cost.

Amortised cost is calculated as:

(a) the amount in which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments and any reduction for impairment; and

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount

initially recognised and the maturity amount calculated using the effective interest rate method.

The effective interest method is used to allocate interest income or interest expense over the relevant

period and is equivalent to the rate that discounts estimated future cash payments or receipts

(including fees, transaction costs and other premiums or discounts) through the expected life (or when

this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying

amount of the financial asset or financial liability. Revisions to expected future net cash flows will

necessitate an adjustment to the carrying value with a consequential recognition of an income or expense

in profit or loss.

CITY OF FREMANTLE



Page 16


(h) Financial Instruments (Continued)

Classification and subsequent measurement (continued)

(i) Financial assets at fair value through profit and loss

Financial assets are classified at “fair value through profit or loss” when they are held for trading for the

purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes

in carrying amount being included in profit or loss. Assets in this category are classified as current assets.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are

not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are

recognised in profit or loss.

Loans and receivables are included in current assets where they are expected to mature within 12 months

after the end of the reporting period.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or

determinable payments that the City of Fremantle has the positive intention and ability to hold to maturity. They

are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Held-to-maturity investments are included in non-current assets, where they are expected to mature

within 12 months after the end of the reporting period. All other investments are classified as non-

current.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be

classified into other categories of financial assets due to their nature, or they are designated as such

by management. They comprise investments in the equity of other entities where there is neither a

fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses)

recognised in other comprehensive income (except for impairment losses). When the financial asset

is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other

comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in current assets, where they are expected to be sold

within 12 months after the end of the reporting period. All other available-for-sale financial assets are

classified as non-current.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at

amortised cost. Gains or losses are recognised in profit or loss.

CITY OF FREMANTLE



Page 17


(h) Financial Instruments (Continued)

Impairment

A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as

a result of one or more events (a “loss event”) having occurred, which will have an impact on the estimated

future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of

the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately.

Also, any cumulative decline in fair value previously recognised in other comprehensive income is

reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the

debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in

interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation;

and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance

account is used to reduce the carrying amount of financial assets impaired by credit losses. After

having taken all possible measures of recovery, if management establishes that the carrying amount

cannot be recovered by any means, at that point the written-off amounts are charged to the allowance

account or the carrying amount of impaired financial assets is reduced directly if no impairment amount

was previously recognised in the allowance account.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the

asset is transferred to another party whereby the City of Fremantle no longer has any significant continual

involvement in the risks and benefits associated with the asset.

Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired.

The difference between the carrying amount of the financial liability extinguished or transferred to

another party and the fair value of the consideration paid, including the transfer of non-cash assets or

liabilities assumed, is recognised in profit or loss.

(i) Impairment of Assets

In accordance with Australian Accounting Standards the City of Fremantle's assets, other than inventories,

are assessed at each reporting date to determine whether there is any indication they may be impaired.

Where such an indication exists, an impairment test is carried out on the asset by comparing the

recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in

use, to the asset's carrying amount.

Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in

profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard

(e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in

accordance with that other Standard.

For non-cash generating assets such as roads, drains, public buildings and the like, value in use is

represented by the depreciated replacement cost of the asset.

(j) Trade and Other Payables

Trade and other payables represent liabilities for goods and services provided to the City of Fremantle prior to the

end of the financial year that are unpaid and arise when the City of Fremantle becomes obliged to make future

payments in respect of the purchase of these goods and services. The amounts are unsecured, are

recognised as a current liability and are normally paid within 30 days of recognition.



CITY OF FREMANTLE

Page 18


(k) Employee Benefits

Short-term employee benefits

Provision is made for the City of Fremantle’s obligations for short-term employee benefits. Short-term employee

benefits are benefits (other than termination benefits) that are expected to be settled wholly before

12 months after the end of the annual reporting period in which the employees render the related service,

including wages, salaries and sick leave. Short-term employee benefits are measured at the

(undiscounted) amounts expected to be paid when the obligation is settled.

The City of Fremantle’s obligations for short-term employee benefits such as wages, salaries and sick leave are

recognised as a part of current trade and other payables in the statement of financial position. The

City of Fremantle’s obligations for employees’ annual leave and long service leave entitlements are recognised as

provisions in the statement of financial position.

Other long-term employee benefits

Provision is made for employees’ long service leave and annual leave entitlements not expected to be

settled wholly within 12 months after the end of the annual reporting period in which the employees

render the related service. Other long-term employee benefits are measured at the present value of the

expected future payments to be made to employees. Expected future payments incorporate anticipated

future wage and salary levels, durations of service and employee departures and are discounted at rates

determined by reference to market yields at the end of the reporting period on government bonds that

have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in

assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the

periods in which the changes occur.

The City of Fremantle’s obligations for long-term employee benefits are presented as non-current provisions in its

statement of financial position, except where the City of Fremantle does not have an unconditional right to defer

settlement for at least 12 months after the end of the reporting period, in which case the obligations are

presented as current provisions.

(l) Borrowing Costs

Borrowing 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 until such time as the asset is substantially ready

for its intended use or sale.

(m) Provisions

Provisions are recognised when the City of Fremantle has a present legal or constructive obligation, as a result of

past events, for which it is probable that an outflow of economic benefits will result and that outflow can

be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the

end of the reporting period.

(n) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the

asset, but not legal ownership, are transferred to the City of Fremantle, are classified as finance leases.

Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair

value of the leased property or the present value of the minimum lease payments, including any

guaranteed residual values. Lease payments are allocated between the reduction of the lease liability

and the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or

the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with the

lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight line

basis over the life of the lease term.

CITY OF FREMANTLE



Page 19


(o) Investment in Associates

An associate is an entity over which the City of Fremantle has significant influence. Significant influence is the

power to participate in the financial operating policy decisions of that entity but is not control or joint

control of those policies. Investments in associates are accounted for in the financial statements by

applying the equity method of accounting, whereby the investment is initially recognised at cost and

adjusted thereafter for the post-acquisition change in the City of Fremantle’s share of net assets of the associate.

In addition, the City of Fremantle’s share of the profit or loss of the associate is included in the City of Fremantle’s

The carrying amount of the investment includes, where applicable, goodwill relating to the associate.

Any discount on acquisition, whereby the City of Fremantle’s share of the net fair value of the associate exceeds

the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.

Profits and losses resulting from transactions between the City of Fremantle and the associate are eliminated to

the extent of the City of Fremantle’s interest in the associate.

When the City of Fremantle’s share of losses in an associate equals or exceeds its interest in the associate, the

City of Fremantle discontinues recognising its share of further losses unless it has incurred legal or constructive

obligations or made payments on behalf of the associate. When the associate subsequently makes

profits, the City of Fremantle will resume recognising its share of those profits once its share of the profits equals

the share of the losses not recognised.

(p) Interests in Joint Arrangements

Joint arrangements represent the contractual sharing of control between parties in a business

venture where unanimous decisions about relevant activities are required.

Separate joint venture entities providing joint venturers with an interest to net assets are classified as a

joint venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity

method of accounting.

Joint venture operations represent arrangements whereby joint operators maintain direct interests in

each asset and exposure to each liability of the arrangement. The City of Fremantle’s interests in the assets,

liabilities, revenue and expenses of joint operations are included in the respective line items of the financial

statements. Information about the joint ventures is set out in Note 19.

(q) Rates, Grants, Donations and Other Contributions

Rates, grants, donations and other contributions are recognised as revenues when the local government

obtains 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.

Where contributions recognised as revenues during the reporting period were obtained on the condition

that they be expended in a particular manner or used over a particular period, and those conditions were

undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged

conditions are disclosed in Note 2(c) . That note also discloses the amount of contributions recognised

as revenues in a previous reporting period which were obtained in respect of the local government's

operations for the current reporting period.

(r) Superannuation

The City of Fremantle contributes to a number of Superannuation Funds on behalf of employees. All funds to

which the City of Fremantle contributes are defined contribution plans.

profit or loss.



CITY OF FREMANTLE

Page 20


(s) Current and Non-Current Classification

In the determination of whether an asset or liability is current or non-current, consideration is given to the

time when each asset or liability 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 City of Fremantle’s operational cycle. In the case

of liabilities where the City of Fremantle does not have the unconditional right to defer settlement beyond 12 months,

such as vested long service leave, the liability is classified as current even if not expected to be settled

within the next 12 months. Inventories held for trading are classified as current even if not expected to be

realised in the next 12 months except for land held for sale where it is held as non-current based on the

City of Fremantle’s intentions to release for sale.

(t) Rounding Off Figures

All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest

dollar.

(u) Comparative Figures

Where required, comparative figures have been adjusted to conform with changes in presentation for the

current financial year.

When the City of Fremantle applies an accounting policy retrospectively, makes a retrospective restatement or

reclassifies items in its financial statement, an additional (third) statement of financial position as at the

beginning of the preceding period in addition to the minimum comparative financial statements is

presented.

(v) Budget Comparative Figures

Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the

original budget estimate for the relevant item of disclosure.



CITY OF FREMANTLE

Page 21

CITY OF FREMANTLE



1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(w) New Accounting Standards and Interpretations for Application in Future Periods

Management's assessment of the new and amended pronouncements that are relevant to the City of Fremantle, applicable to future reporting periods and which have not yet

been adopted are set out as follows:

Title Issued / Compiled Applicable (1)

Impact

(i) AASB 9 Financial Instruments December 2014 1 January 2018 Nil – The objective of this Standard is to improve and simplify the

(incorporating AASB 2014-7 and approach for classification and measurement of financial assets

AASB 2014-8) compared with the requirements of AASB 139. Given the nature of

the financial assets of the City of Fremantle, it is not anticipated the Standard

will have any material effect.

(ii) AASB 2010-7 Amendments September 2012 1 January 2018 Nil - The revisions embodied in this Standard give effect to the

to Australian Accounting consequential changes arising from the issuance of AASB 9 which is

Standards arising from AASB 9 not anticipated to have any material effect on the City of Fremantle (refer (i)

(December 2010) above).

[AASB 1, 3, 4, 5, 7, 101, 102,

108, 112, 118, 120, 121, 127,

128, 131, 132, 136, 137, 139, 1023 &

1038 and Interpretations 2, 5, 10, 12, 19 &

127]

(iii) AASB 15 Revenue from Contracts with December 2014 1 January 2017 This Standard establishes principles for entities to apply to report

Customers useful information to users of financial statements about the nature,

amount, timing and uncertainty of revenue and cash flows arising

from a contract with a customer.

The effect of this Standard will depend upon the nature of future

transactions the City of Fremantle has with those third parties it has dealings

with. It may or may not be significant.

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods,

some of which are relevant to the City of Fremantle.

Page 22

CITY OF FREMANTLE




(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)


Impact

(iv) AASB 2013-9 Amendments to Australian December 2013 Refer title column Part C of this Standard makes consequential amendments to

Accounting Standards - Conceptual AASB 9 and numerous other Standards and amends the

Framework, Materiality and Financial permissions around certain applications relating to financial

Instruments liabilities reissued at fair value.

[Operative date: Part C Financial As the bulk of changes relate either to editorial or reference changes

Instruments - 1 January 2015] it is not expected to have a significant impact on the City of Fremantle.

(v) AASB 2014-3 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 11: Joint Arrangements to require the

Accounting Standards - Accounting for acquirer of an interest (both initial and additional) in a joint operation

Acquisitions of Interests in Joint Operations in which the activity constitutes a business, as defined in AASB 3:

Business Combinations, to apply all of the principles on business

[AASB 1 & AASB 11] combinations accounting in AASB 3 and other Australian

Accounting Standards except for those principles that conflict with

the guidance in AASB 11; and disclose the information required

by AASB 3 and other Australian Accounting Standards for business

combinations.

Since adoption of this Standard would impact only acquisitions of

interests in joint operations on or after 1 January 2016,

management believes it is impracticable at this stage to provide a

reasonable estimate of such impact on the City of Fremantle's financial

statements.

(vi) AASB 2014-4 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 116 and AASB 138 to establish the

Accounting Standards - Clarification of principle for the basis of depreciation and amortisation as being the

Acceptable Methods of Depreciation and expected pattern of consumption of the future economic benefits of

Amortisation an asset. It also clarifies the use of revenue-based methods to

calculate the depreciation of an asset is not appropriate nor is

[AASB 116 & 138] revenue generally an appropriate basis for measuring the

consumption of the economic benefits embodied in an intangible

asset.

Given the City of Fremantle curently uses the expected pattern of consumption of

the future economic benefits of an asset as the basis of calculation

of depreciation, it is not expected to have a significant impact.

Page 23

CITY OF FREMANTLE






Impact

(vii) AASB 2014-5 Amendments to Australian December 2014 1 January 2017 Consequential changes to various Standards arising from the

Accounting Standards arising from AASB 15 issuance of AASB 15.

It will require changes to reflect the impact of AASB 15.

(viii) AASB 2015-2 Amendments to Australian January 2015 1 January 2016 This Standard amends AASB 101 to provide clarification regarding

Accounting Standards – Disclosure the disclosure requirements in AASB 101. Specifically, the

Initiative: Amendments to Standard proposes narrow-focus amendments to address some of

AASB 101 the concerns expressed about existing presentation and disclosure

requirements and to ensure entities are able to use judgement

[AASB 7, 101, 134 & 1049] when applying a Standard in determining what information to

disclose in their financial statements.

This Standard also makes editorial and consequential amendments

as a result of amendments to the Standards listed in the title

column.

It is not anticipated it will have any significant impact on

disclosures.

(ix) AASB 2015-3 Amendments to Australian January 2015 1 July 2015 This Standard completes the withdrawal of references to AASB 1031

Accounting Standards arising from the in all Australian Accounting Standards and Interpretations, allowing

withdrawal of AASB 1031 Materiality it to be completely withdrawn.

It is not anticipated it will have a significant impact as the principles

of materiality remain largely unchanged.

Page 24

CITY OF FREMANTLE






Impact

(x) AASB 2015-6 Amendments to Australian March 2015 1 July 2016 The objective of this Standard is to extend the scope of AASB 124

Accounting Standards - Extending Related Related Party Disclosures to include not-for-profit sector entities.

Party Disclosures to Not-for-Profit Public

Sector Entities The Standard is expected to have a significant disclosure impact on

the financial report of the City of Fremantle as both Elected Members and Senior

[AASB 10, 124 & 1049] Management will be deemed to be Key Management Personnel

and resultant disclosures will be necessary.

Notes:(1)

Applicable to reporting periods commencing on or after the given date.

(x) Adoption of New and Revised Accounting Standards

AASB 2011-7

AASB 2012-3

AASB 2013-3

AASB 2013-8

AASB 2013-9 Parts A & B

criteria of IFRSs or related to topics not relevant to operations.

(y) Early Adoption of Amended accounting Standard

Public Sector Entities. The applicable date is 1 July 2016 but early adoption was allowed for 30 June 2015 reporting periods and the city decided to early adopt for the 30 June 2015

reporting period. The impact of the revised standard is to reduce the amount of explanatory detail that would otherwise have been required to support the fair valuations undertaken.

In July 2015 the Australian Accounting Standards Board issued AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit

and which were applicable to its operations.

or reporting practices or were either not applicable, largely editorial in nature, were revisions to help ensure consistency with presentation, recognition and measurement

During the current year, the City of Fremantle adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, became mandatory

These new and revised Standards were:

Most of the Standards adopted had a minimal effect on the accounting and reporting practices of the City of Fremantle as they did not have a significant impact on the accounting

Page 25

CITY OF FREMANTLE



2. REVENUE AND EXPENSES 2015 2014

$ $

(a) Net Result

The Net result includes:

(i) Charging as an expense:

Auditors remuneration

- Audit of the financial report 27,182 27,750

- Grant Acquittals 6,000 6,000

Depreciation

Freehold Buildings 152,444 132,488

Buildings on Reserves 1,544,371 1,555,984

Furniture and Equipment 746,267 581,948

Fleet 427,329 380,765

Intangible Assets 2,400 231,941

Roads 2,993,572 2,958,218

Footpaths 895,709 889,253

Drainage 325,063 317,377

Parks and Reserves 338,208 289,863

7,425,363 7,337,837

Interest expenses (finance costs)

Debentures (refer Note 25 (a)) 553,103 477,756

553,103 477,756

Rental charges

- Operating Leases 49,650 49,897

- Rental Agreements 695,095 921,190

744,745 971,087

(ii) Crediting as revenue:

2015 2015 2014

Actual Budget Actual

$ $ $

Interest earnings

- Self supporting loans( refer note 6 (a)) 44,015 13,754 7,404

- Reserve funds 842,526 950,000 759,477

- Other funds 682,734 682,000 655,160

Other interest revenue (refer note 30) 327,395 295,000 272,113

1,896,670 1,940,754 1,694,154

Page 26

CITY OF FREMANTLE



2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective

The City of Fremantle is dedicated to providing high quality services to the community through

the various service orientated programs which it has established.

GOVERNANCE

Operation of the election of community representatives to Council. Meeting costs to Council, its

committees and Councillor representation at public and civic events. Conferences and meetings,

e.g. Citizenship ceremonies and Local Government week. Council's strategic planning and

policy making responsibilities. Fees, allowances and elected members expenses. Cost of

Council's staff in relation to supporting elected members planning, policy making and

representation role. Corporate support including accounting, budgeting and annual reports and

general activity associated with employing staff and providing resources to service Council.

GENERAL PURPOSE FUNDING

Operation of the rating function, funding process of the Grants Commission and interest

earnt from cash management and investing activity.

LAW, ORDER, PUBLIC SAFETY

Operation of various Council by-laws, ranger services, public safety and animal control.

HEALTH

Operation of environmental health, food control and pest control.

EDUCATION AND WELFARE

Operation of pre-school and other education services. Operation and support in the care

of families and children, senior citizens and other voluntary services.

HOUSING

Operation of housing for rent.

COMMUNITY AMENITIES

Operation of rubbish and recyclable waste collection services, noise control, protection

of the environment, provision of public toilets and administration of the town planning scheme.

RECREATION AND CULTURE

Operation of civic centre, public halls, swimming pool, recreation centres, parks and reserves,

libraries, arts centre, heritage issues and other cultural facilities.

TRANSPORT

Operation of construction and maintenance of roads, drainage works, footpaths, street

lighting plus on and off street parking facilities.

ECONOMIC SERVICES

Operation of tourism services, implementation of building controls and economic development.

OTHER PROPERTY AND SERVICES

Operation of private works, plant and public works overheads.

Page 27

CITY OF FREMANTLE



2. REVENUE AND EXPENSES (Continued)

(c) Conditions Over Grants/Contributions Opening Closing Closing

Balance (1)

Received (2)

Expended (3)

Balance (1)

Received (2)

Expended (3)

Balance

Function/ 1/07/13 2013/14 2013/14 30/06/14 2014/15 2014/15 30/06/15

Grant/Contribution Activity $ $ $ $ $ $ $

Count Me In Inclusion

- Hilton Harvest Community Garden 38,158 - (13,225) 24,933 - (24,933) -

Freo Club 4,300 24,702 (23,150) 5,852 24,416 (24,343) 5,925

Tobacco Control Grant scheme - 5,373 (1,780) 3,593 - (1,420) 2,173

Martu Project - 411,254 (43,057) 368,197 132,216 (253,546) 246,867

Graffiti Grant - 17,990 - 17,990 - (16,390) 1,600

Safer Street in Fremantle - 21,893 (20,914) 979 - (979) -

FCL Tenancy Services* - - - - 39,100 - 39,100 *

Total 42,458 481,212 (102,126) 421,544 195,732 (321,611) 295,665

Notes:

(1) - Grants/contributions recognised as revenue in a previous reporting period which were not expended at the close of the previous reporting period.

(2) - New grants/contributions which were recognised as revenues during the reporting period and which had not yet been fully expended in the manner specified

by the contributor.

(3) - Grants/contributions which had been recognised as revenues in a previous reporting period or received in the current reporting period and which were

expended in the current reporting period in the manner specified by the contributor.

* Closing balance for FCL Tenancy Services is the Grants payment received in 2014/2015 FY for the first quarterly funding payment of 2015/2016 FY.

Page 28

CITY OF FREMANTLE



Note 2015 2014

$ $

3. CASH AND CASH EQUIVALENTS

Unrestricted 16,625,874 11,551,907

Restricted 28,382,233 27,898,158

45,008,107 39,450,065

The following restrictions have been imposed by

regulations or other externally imposed requirements:

Investment Reserve 14 10,068,870 8,131,971

Heritage Places Reserve 14 105,241 833,486

Parks, Recreation and Facilities Reserve 14 767,925 763,964

Parking Dividend Equalisation Reserve 14 6,913,282 6,913,282

Fremantle Markets Conservation Reserve 14 199,558 576,592

Renewable Energy Investment Reserve 14 338,965 11,225

Leighton Precinct Maintenance 14 144,888 106,886

Leisure Centre Upgrade 14 150,000 150,000

Fremantle Town Hall Refurbishment 14 2,000,000 2,000,000

Cantonment Hill Master Plan 14 1,712,227 1,867,501

Kings Square Improvements 14 1,356,522 2,000,000

Stan Reilly Property Re-Development Reserve 14 2,000,000 2,000,000

HACC Asset Replacement Reserve 14 76,545 76,545

Other Restricted Funds 23 1,179,854 930,721

Unspent grants 2(c) 295,665 421,544

Unspent loans 25 (c) 1,072,691 1,114,441

28,382,233 27,898,158

4. INVESTMENTS

Equity Investment (Non Current) - Refer Note 19 2,445,405 2,101,404

5. INVENTORIES

Current

Consumables 76,998 78,703

Goods for Sale 101,765 91,636

178,763 170,339

6. TRADE AND OTHER RECEIVABLES

Current

Rates outstanding 264,154 227,827

Sundry debtors 1,297,497 1,578,580

GST receivable 581,005 995,719

Loans - clubs/institutions 211,333 200,237

2,353,989 3,002,363

Non-current

Rates outstanding - pensioners 373,451 356,496

Loans - clubs/institutions 54,169 595,502

427,620 951,998

Page 29

CITY OF FREMANTLE



6 (a) Loan Advances

2013/2014

Amount of

Initial

Advance

Term of

Advance

Years

Date of

Advance

Outstanding

Principal

30 June 2014

Interest Principal Total

Repayment

Outstanding

Principal

30 June 2015

Future

Years

Impairment

Charges

Unimpaired

Outstanding

Charges

Self Supporting Loans - General

Silver Chain 2,200,000 10 14-Jun-06 377,482 - 220,000 220,000 239,053 - 239,053

Impairment Charge 81,571 - (23,723) (23,723) 23,723 12,224 35,947

459,053 - 196,277 196,277 262,776 12,224 275,000

Fremantle Workers Club 330,000 10 21-Dec-12 330,000 43,906 330,000 373,906 - - -

789,053 43,906 526,277 570,183 262,776 12,224 275,000

Loans under Sport & Recreation Capital Loans Scheme

North Fremantle Associated

Clubs 13,000 11 28-Jun-05 1,279 21 1,279 1,300 - - -

South Fremantle Football Club 27,700 11 21-Jun-05 5,407 88 2,682 2,770 2,725 - 2,725

6,686 109 3,961 4,070 2,725 - 2,725

Total All Advances 795,739 44,015 530,238 574,253 265,501 12,224 277,725

2014/2015

Page 30

CITY OF FREMANTLE



2015 2014

$ $

7 (a). PROPERTY, PLANT AND EQUIPMENT

Land and buildings

Freehold land at:

- Independent valuation 2014 - level 2 116,152,514 116,152,514

- Additions after valuation - cost 6,880,000 -

123,032,514 116,152,514

Vested Land


1,250,000 1,250,000

124,282,514 117,402,514

Freehold Buildings at:



Less: accumulated depreciation (152,444) -

7,153,729 4,792,021

Buildings on Reserves



- Impairment Loss (189,619) -

Less accumulated depreciation (1,544,372) -

63,410,012 61,765,605

70,563,741 66,557,626

Total land and buildings 194,846,255 183,960,140

Furniture and Equipment at:

- Management Valuation 2013 - level 3 3,908,891 3,908,890

- Additions after Valuation - Cost 1,360,353 993,500

- Disposal after Valuation-Cost (33,476) (28,853)

Less accumulated depreciation (1,328,215) (581,948)

3,907,553 4,291,589

Fleet at:

- Management Valuation 2013 - level 3 3,325,586 3,325,585

- Additions after Valuation - Cost 1,640,162 949,081

- Disposal after Valuation-Cost (275,722) (135,840)

Less accumulated depreciation (808,094) (380,765)

3,881,932 3,758,061

Page 31

CITY OF FREMANTLE



2015 2014

$ $

7 (a). PROPERTY, PLANT AND EQUIPMENT (Continued)

Art Collection at:

-Independent Valuation 1999 - 1,717,805

- Additions after Valuation - Cost - 225,358

-Independent Valuation 2015- level 2 2,637,080 -

Less accumulated amortisation - -

2,637,080 1,943,163

205,272,820 193,952,953

The fair value of property, plant and equipment is determined at least every three years in

accordance with legislative requirements. Additions since the date of valuation are shown

as cost, given they were acquired at arms length and any accumulated depreciation reflects

the usage of service potential, it is considered the recorded written down value approximates

fair value. At the end of each intervening period the valuation is reviewed and where

appropriate the fair value is updated to reflect current market conditions. This process is

considered to be in accordance with Local Government (Financial Management)

Regulation 17A (2) which requires property, plant and equipment to be shown at fair value.

Page 32

CITY OF FREMANTLE



7. PROPERTY, PLANT AND EQUIPMENT (Continued)

(b) Movements in Carrying Amounts

Movement in the carrying amounts of each class of property, plant and equipment between the beginning and the end of the current financial year.

Balance Carrying

at the Revaluation Impairment Amount

Beginning Increments/ (Losses)/ Depreciation at the

of the Year Additions (Disposals) (Decrements) Reversals (Expense) End of Year

$ $ $ $ $ $ $

Freehold land 116,152,514 6,880,000 - - - - 123,032,514

Vested Land 1,250,000 - - - - - 1,250,000

Total land 117,402,514 6,880,000 - - - - 124,282,514

Freehold Buildings 4,792,021 2,514,152 - - - (152,444) 7,153,729

Buildings on Reserves 61,765,605 3,378,397 - - (189,619) (1,544,371) 63,410,012

Total buildings 66,557,626 5,892,549 - - (189,619) (1,696,815) 70,563,741

Total land and buildings 183,960,140 12,772,549 - - (189,619) (1,696,815) 194,846,255

Furniture and Equipment 4,291,589 366,854 (4,623) - - (746,267) 3,907,553

Fleet 3,758,061 691,082 (139,882) - - (427,329) 3,881,932

Art Collection 1,943,163 57,987 (52,563) 688,493 - - 2,637,080

Total property, plant and equipment 193,952,953 13,888,472 (197,068) 688,493 (189,619) (2,870,411) 205,272,820

Replacement Values Used in Asset Consumption Ratio Freehold Buildings Furniture & Fleet

Buildings on Reserves Equipment Total

Current Replacement Cost at Fair Value 49,719,152 106,223,397 13,783,672 7,691,657 177,417,878

Less Accumulated Depreciation (33,504,927) (42,623,766) (9,876,119) (3,809,725) (89,814,537)

Less Impairment (9,060,496) (189,619) - - (9,250,115)

Depreciated Replacement Cost 7,153,729 63,410,012 3,907,553 3,881,932 78,353,226Page 33

7. PROPERTY, PLANT AND EQUIPMENT (Continued)

(c) Fair Value Measurements

Fair Value

HierarchyValuation Technique

Basis of

valuation

Date of last

ValuationInputs used

Land and buildings

Level 2

Market approach using recent

observable market data for similar

properties.

Independent

registered

valuers

June 2014Recent sals evidence of similar land, the size of the

land and location (Level 2).

Level 2

Capitalisation approach to determine

fair market value to be representative

of the capitalised value of a fair net

market rental for such assets.

Independent

registered

valuers

June 2014

Potential return of the land (Level3), nature of

improvements, size of land, ownership and lease

structure and location (Level 2) inputs.

Level 2



properties to value land and building.

The value of building is derived as the

added value and does not represent

the replacement value of

improvement.

Independent

registered

valuers

June 2014Recent sals evidence of similar land, the size of the

properties and location (Level 2).

Level 2Cost approach using depreciated

replacement cost

Independent

registered

valuers

June 2014

Insurance value (Level 2), current condition, residual

values and remaining useful life assessment (Level

3) inputs.


replacement cost

Management

valuationJune 2013

Purchase costs (Level 2), current condition, residual


3) inputs.


replacement cost

Management

valuationJune 2013

Purchase costs (Level 2), current condition, residual


3) inputs.

Level 2



properties

Independent

registered

valuers

June 2015Price per item was determined by comparison to

recent sales of Art work with similar characteristics.

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of

these assumptions were varied , they have the potential to result in a significantly higher or lower fair value measurement.

During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant

and equipment using either level 2 or level 3 inputs.

Art Collection

CITY OF FREMANTLE



Asset Class

Furniture and Equipment

Fleet

Freehold land

Vested Land

Freehold Buildings

Buildings on Reserves

Page 34

CITY OF FREMANTLE



2015 2014

$ $

8 (a). INVESTMENT PROPERTY

Land Investment at:


- Additions after valuation - cost 1 -

- Disposal after valuation (2,600,000) -

42,135,001 44,735,000

Building Investment at:


- Additions after valuation - cost 579,988 -

Less: accumulated depreciation - -

6,379,988 5,800,000

Total investment properties 48,514,989 50,535,000

The fair value of investment property is determined at least every three years in

accordance with legislative requirements. Additions since the date of valuation are shown

as cost, given they were acquired at arms length and any accumulated depreciation reflects

the usage of service potential, it is considered the recorded written down value approximates

fair value. At the end of each intervening period the valuation is reviewed and where

appropriate the fair value is updated to reflect current market conditions. This process is

considered to be in accordance with Local Government (Financial Management)

Regulation 17A (2) which requires investment property to be shown at fair value.

Page 35

CITY OF FREMANTLE



8. INVESTMENT PROPERTY (Continued)


Movement in the carrying amounts of each class of property, plant and equipment between the beginning and the end of the current financial year.

Balance Carrying

at the Revaluation Impairment Amount

Beginning Increments/ (Losses)/ Depreciation at the

of the Year Additions (Disposals) (Decrements) Reversals (Expense) End of Year

$ $ $ $ $ $ $

Land Investment 44,735,000 1 (2,600,000) - - - 42,135,001

Building Investment 5,800,000 579,988 - - - - 6,379,988

Total investment property, plant and equipment 50,535,000 579,989 (2,600,000) - - - 48,514,989

Replacement Values Used in Asset Consumption Ratio Building

Investment Total

Current Replacement Cost at Fair Value 51,254,988 51,254,988

Less Accumulated Depreciation (29,231,500) (29,231,500)

Less Impairment (15,643,500) (15,643,500)

Depreciated Replacement Cost 6,379,988 6,379,988

Page 36

8. INVESTMENT PROPERTY (Continued)


Fair Value

HierarchyValuation Technique

Basis of

valuation

Date of last


Level 2

Capitalisation of net income approach

in which the freehold value is

predominantly reliant upon the current

income level.

Independent

registered

valuers

June 2014

Rental property tenancy schedule (Level 2). Recent

sals evidence of similar land, the size of the land

and location (Level 2).

Level 2

Capitalisation of net income approach

in which the freehold value is

predominantly reliant upon the current

income level.

Independent

registered

valuers

June 2014

Rental property tenancy schedule (Level 2). Recent

sals evidence of similar land, the size of the land

and location (Level 2).

During the period there were no changes in the valuation techniques used by the local government to determine the fair value of investment property using either level 2 inputs.

Building Investment

CITY OF FREMANTLE



Asset Class

Land Investment

Page 37

CITY OF FREMANTLE



2015 2014

$ $

9 (a). INFRASTRUCTURE

Roads

- Independent valuation 2015 - level 3 160,659,208 -

- Management valuation 2013 - level 3 - 162,917,966

- Additions after valuation - cost - 3,278,302

Less accumulated depreciation (33,203,175) (2,958,218)

127,456,033 163,238,050

Footpaths



- Additions after valuation - cost - 279,415


38,417,383 27,178,553

Drainage



- Additions after valuation - cost - 344,100


45,199,326 12,720,843

Parks & Ovals



- Additions after valuation - cost - 2,906,437


18,869,009 19,659,355

229,941,751 222,796,801

The fair value of infrastructure is determined at least every three years in accordance with

legislative requirements. Additions since the date of valuation are shown as cost. Given they were

acquired at arms length and any accumulated depreciation reflects the usage of service potential,

it is considered the recorded written down value approximates fair value. At the end of each

intervening period the valuation is reviewed and, where appropriate, the fair value is updated to

reflect current market conditions.

This process is considered to be in accordance with Local Government (Financial Management)

Regulation 17A (2) which requires infrastructure to be shown at fair value.

Page 38

CITY OF FREMANTLE



9. INFRASTRUCTURE (Continued)


Movement in the carrying amounts of each class of infrastructure between the beginning and the end

of the current financial year.

Balance Carrying

as at the Revaluation Impairment Amount

Beginning Increments/ (Losses)/ Depreciation at the End

of the Year Additions (Disposals) (Decrements) Reversals (Expense) Transfers of the Year

$ $ $ $ $ $ $ $

Roads 163,238,050 2,966,980 - (35,755,425) - (2,993,572) - 127,456,033

Footpaths 27,178,553 313,193 - 11,821,346 - (895,709) - 38,417,383

Drainage 12,720,843 584,296 - 32,219,250 - (325,063) - 45,199,326

Parks & Ovals 19,659,355 1,162,541 - (1,614,679) - (338,208) - 18,869,009

Total infrastructure 222,796,801 5,027,010 - 6,670,492 - (4,552,552) - 229,941,751

Replacement Values Used in Asset Consumption Ratio

Roads Footpaths Drainage Parks & Ovals Total

Current Replacement Cost at Fair Value 160,659,208 44,997,156 51,963,963 29,031,998 286,652,325

Less Accumulated Depreciation (33,203,175) (6,579,773) (6,764,637) (10,162,989) (56,710,574)

Less Impairment - - - - -

Depreciated Replacement Cost 127,456,033 38,417,383 45,199,326 18,869,009 229,941,751

The revaluation of infrastructure assets resulted in an increase on revaluation of $6,670,492 in the net value of infrastructure.

All of this increase was credited to the revaluation surplus in the City of Fremantle's equity (refer Note 15) and was recognised as Changes on Revaluation of non-current assets

in the Statement of Comprehensive Income.

Page 39

9. INFRASTRUCTURE (Continued)


Asset ClassFair Value

HierarchyValuation Technique Basis of valuation

Date of last


Roads Level 3Cost approach using depreciated

replacement cost

Independent registered

valuersJune 2015

The unit rates (Level 2), asset condition, residual

values, pattern of consumption and remaining useful

life assessments (Level 3) inputs.

Footpaths Level 3Cost approach using depreciated

replacement cost


valuersJune 2015




Drainage Level 3Cost approach using depreciated

replacement cost


valuersJune 2015




Parks & Ovals Level 3Cost approach using depreciated

replacement cost


valuersJune 2015

Construction costs and current condition (Level 2),

remaining useful life assessments (Level 3) inputs.

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of

these assumptions were varied , they have the potential to result in a significantly higher or lower fair value measurement.

During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.

CITY OF FREMANTLE



Page 40

CITY OF FREMANTLE



2015 2014

$ $

10 INTANGIBLES

Computer Software

- Management Valuation 2014 8,699 8,699

Less Accumulated Depreciation (2,400) -

6,299 8,699

Easements-Nominal Value 1 1

1 1

6,300 8,700

Easement

Regulation 16 of the Local Government (Financial Management) Regulations 1996 requires easements to be

recognised as assets.

the City has determined that under AASB 138, easement are valued on an historical cost basis, because it is

unlikely that an active market in easement exists to allow for fair value measurement. Easements has been

included in the financial report at the nominal value of $1.

Fair Value Measurements

Fair Value Hierarchy

Valuation Technique

Basis of valuation

Date of last Valuation

Inputs used

11. TRADE AND OTHER PAYABLES

Current

Sundry creditors 6,169,081 4,864,005

Accrued interest on debentures 119,181 115,194

Accrued salaries and wages 929,027 655,855

Debtors invoiced in advance 274,157 331,932

GST payable 235,000 782,862

Bonds and deposits held 2,828,407 2,178,757

10,554,853 8,928,605

Level 3

June 2014

Cost approach using depreciated

replacement cost

Management valuation

Purchase costs (Level 2), current

condition, residual values and

remaining useful life assessment

(Level 3) inputs.

Page 41

CITY OF FREMANTLE



2015 2014

$ $

12. LONG-TERM BORROWINGS

Current

Secured by Floating Charge Debentures

Debentures 2,471,326 1,491,418

Lease liability - -

2,471,326 1,491,418

Non-current

Secured by Floating Charge Debentures

Debentures 17,816,593 9,737,890

Lease liability - -

17,816,593 9,737,890

Additional detail on borrowings is provided in Note 25.

13. PROVISIONS

Analysis of Total Provisions

Current

Fremantle Markets - prepaid works 12,964 12,964

Provision for annual leave 3,003,565 2,427,764

Provision for long service leave 3,047,129 2,735,248

Leasehold Premiums - Tapper St 532,980 584,728

6,596,638 5,760,704

Non-Current

Fremantle Markets - prepaid works 133,208 146,171

Provision for long service leave 783,024 801,277

916,232 947,448

Total Provisions 7,512,870 6,708,152

Provision for Provision for

Annual Long Service

Leave Leave Total

$ $ $

Opening balance at 1 July 2014 2,427,764 2,735,248 5,163,012

Non-current provisions - 801,277 801,277

2,427,764 3,536,525 5,964,289

Additional provision 575,801 293,628 869,429

Balance at 30 June 2015 3,003,565 3,830,153 6,833,718

Comprises

Current 3,003,565 3,047,129 6,050,694

Non-current - 783,024 783,024

3,003,565 3,830,153 6,833,718

Page 42

CITY OF FREMANTLE



2015 2015 2014

$ Budget $

$

14. RESERVES - CASH/INVESTMENT BACKED

(a) Investment Reserve Fund

Opening Balance 8,131,971 8,132,075 1,179,011

Amount Set Aside / Transfer to Reserve

Sale of Council Depot Land - 10,000,000 -

Sale of 7 Quarry Street Land - 2,557,522 -

Sale of 7 Quarry Street Buildings - 192,478 -

Sale of Queensgate Carpark Land - 15,850,000 -

Sale of Queensgate Carpark Buildings - 650,000 -

Sale of Queensgate Centre Land - 3,700,000 -

Sale of Queensgate Centre Buildings - 2,700,000 -

Sale of Pakenham (Bannister) St Carpark 2,466,364 2,800,000 -

Closure of Investment Trust - - 2,400,213

50% of Selling of Point Street Car Park - - 4,989,683

Loan 189 Repayment - - 367,268

Amount Used / Transfer from Reserve

New Library & Civic Centre - (500,000) -

Old Fire Station Upgrade - (200,000) -

Evans Davies Building Renewal (529,465) (480,000) -

Union Stores Building Renewal - (200,000) -

Capital Upgrade-Evan Davies - - (3,021)

Backpackers Roof Gutters and Facia - - (98,700)

Capital Upgrade-Union Stores - - (202,483)

Leisure Centre Upgrades - - (500,000)

10,068,870 45,202,075 8,131,971

(b) Heritage Places Reserve

Opening Balance 833,486 891,945 656,472


Annual Allocation of 1.25% of Rates 476,135 476,135 445,610


Fremantle Boys School Roof Other (779,059) (850,000) -

Fremantle Oval Victoria Pavilion (425,321) (490,000) -

Fremantle Oval Wall Repairs - - (38,500)

Hertiage Loan Scheme - - (10,000)

Fremantle Town Hall-Restoration Works - - (12,601)

Heritage Lighting Requests - - (19,656)

FTI Building Works Stage 1 - - (61,893)

Redevelop Bathers Bch & Arthur Head - - (125,946)

105,241 28,080 833,486

Total Reserves C/Fwd 10,174,111 45,230,155 8,965,457

Page 43

CITY OF FREMANTLE



2015 2015 2014

$ Budget $

$

14. RESERVES - CASH/INVESTMENT BACKED (CONTINUED)

Total Reserves B/Fwd 10,174,111 45,230,155 8,965,457

(c) Parking Dividend Equalisation Reserve

Opening Balance 6,913,282 6,913,212 2,864,155

Amount Set Aside / Transfer to Reserve -

50% of selling of point street car park - - 4,989,684


Resurfacing & Kerbing - - (9,258)

Signage Upgrades - - (11,072)

Parry St Car Park Upgrade - - (52,717)

Redevelopment of Carpark Lighting - - (70,073)

Carparking Guidence System - - (97,888)

Ticket Machine Upgrade - - (699,549)

6,913,282 6,913,212 6,913,282

(d) Parks, Recreation and Facilities Reserve

Opening Balance 763,964 763,965 759,575


Allocation from Loan Advances 3,961 3,961 4,389


Leighton Beach Landscape - (582,000) -

767,925 185,926 763,964

(e) Fremantle Markets Conservation

Opening Balance 576,592 532,862 556,250


Annual Allocation - increase in rent to 2018 154,500 154,500 150,000


Fremantle Markets - Urgent Works (417,873) (510,000) -

Fremantle Markets - Compliance and Structural Elements - - (15,950)

Fremantle Markets - Conservation Loans (113,661) (113,661) (113,708)

199,558 63,701 576,592


Page 44

CITY OF FREMANTLE



2015 2015 2014

$ Budget $

$



(f) Renewable Energy Investment Reserve

Opening Balance 11,225 11,225 190,385


Allocation based on 1% of Rates 380,908 380,908 320,840


Energy Efficiency for Buildings (17,150) - -

Organic Waste System (36,018) - -

Leisure Centre - Pool Heating - - (500,000)

338,965 392,133 11,225

(g) Leighton Precinct Maintenance

Opening Balance 106,886 106,886 70,862


SAR Funds unspent at EOY 38,002 38,000 36,024


Leighton Precinct Maintenance - - -

144,888 144,886 106,886

(h) Leisure Centre Upgrade

Opening Balance 150,000 150,000 1,957,104


Allocation from Budget - - 500,000


Leisure Centre Upgrade Projects - - (2,307,104)

150,000 150,000 150,000

(i) Fremantle Town Hall Refurbishment

Opening Balance 2,000,000 2,000,000 2,000,000

Amount Set Aside / Transfer to Reserve - - -

Allocation from Budget - - -


Fremantle Town Hall Renewal - (400,000) -

2,000,000 1,600,000 2,000,000

(j) Cantonment Hill Master Plan

Opening Balance 1,867,501 1,770,883 1,997,000




Cantonment Hill Master Plan - Stage 1 (155,274) (150,000) (96,415)

Cantonment Hill Building Assessments - - (33,084)

1,712,227 1,620,883 1,867,501


Page 45

CITY OF FREMANTLE



2015 2015 2014

$ Budget $

$

14. RESERVES - CASH BACKED (CONTINUED)

Total Reserves B/Fwd 22,400,956 56,300,896 21,354,907

(k) Kings Square Improvements

Opening Balance 2,000,000 2,000,000 2,000,000




Kings Square Improvement Projects (643,478) - -

1,356,522 2,000,000 2,000,000

(l) Play Spaces

Opening Balance - - 920,910




Esplanade Skate Park - - (920,910)

- - -

(m) Sustainability Reserve

Opening Balance - - 942,903




Leisure Centre - Pool Heating - - (942,903)

- - -

(n) Stan Reilly Property Re-Development Reserve

Opening Balance 2,000,000 2,000,000 2,000,000




Stan Reilly Site Projects - - -

2,000,000 2,000,000 2,000,000

(o) HACC Asset Replacement Reserve

Opening Balance 76,545 76,545 76,545


Surplus in Recurrent Grant - - -


HACC Asset Acquisition - - -

76,545 76,545 76,545

Total Reserves 25,834,023 60,377,441 25,431,452

All of the reserve accounts are supported by money held in financial institutions and match the

amount shown as restricted cash in Note 3 to this financial report.

Page 46

CITY OF FREMANTLE



2014/15 2014/15 2013/14

Actual Budget Actual

14. RESERVES (Continued) $ $ $

SUMMARY OF RESERVE TRANSFERS

Transfers to Reserves

Investment Reserve Fund 2,466,364 38,450,000 7,757,164

Heritage Places Reserve 476,135 476,135 445,610

Parking Dividend Equalisation Reserve - - 4,989,684

Parks, Recreation and Facilities Reserve 3,961 3,961 4,389

Fremantle Markets Conservation 154,500 154,500 150,000

Renewable Energy Investment Reserve 380,908 380,908 320,840

Leighton Precinct Maintenance 38,002 38,000 36,024

Leisure Centre Upgrade - - 500,000

Fremantle Town Hall Refurbishment - - -

Cantonment Hill Master Plan - - -

Kings Square Improvements - - -

Play Spaces - - -

Sustainability Reserve - - -

Stan Reilly Property Re-Development Reserve - - -

HACC Asset Replacement Reserve

3,519,870 39,503,504 14,203,711

Transfers from Reserves

Investment Reserve Fund (529,465) (1,380,000) (804,204)

Heritage Places Reserve (1,204,380) (1,340,000) (268,596)

Parking Dividend Equalisation Reserve - - (940,557)

Parks, Recreation and Facilities Reserve - (582,000) -

Fremantle Markets Conservation (531,534) (623,661) (129,658)

Renewable Energy Investment Reserve (53,168) - (500,000)

Leighton Precinct Maintenance - - -

Leisure Centre Upgrade - - (2,307,104)

Fremantle Town Hall Refurbishment - (400,000) -

Cantonment Hill Master Plan (155,274) (150,000) (129,499)

Kings Square Improvements (643,478) - -

Play Spaces - - (920,910)

Sustainability Reserve - - (942,903)

Stan Reilly Property Re-Development Reserve - - -

HACC Asset Replacement Reserve - - -

(3,117,299) (4,475,661) (6,943,431)

Total Transfer to/(from) Reserves 402,571 35,027,843 7,260,280

Summary of Total Reserves

Opening Balance 25,431,452 25,349,598 18,171,172

Total Amount Set Aside / Transfer to Reserve 3,519,870 39,503,504 14,203,711

Tota; Amount Used / Transfer from Reserve (3,117,299) (4,475,661) (6,943,431)

Total Reserves 25,834,023 60,377,441 25,431,452

Page 47


In accordance with council resolutions in relation to each reserve account, the purpose for which

the funds are set aside are as follows:

On 15th December 2003, Council adopted a strategic policy on Reserve Funds. That policy

classified reserves into three groupings as follows:

(i) Indefinite or Long Term Reserves

(ii) 5 Year Plan & Asset Maintenance Reserves

(iii) Short Term Reserves to meet External Requirements

(i) Indefinite or Long Term Reserves

(a) Investment Reserve

Purpose of Reserve

· Established for the purpose of realising and making investments in income producing assets. A

specified list of investment properties forms part of the investments. Funds will not be withdrawn

from the reserve to subsidise operating or recurrent expenditure, nor shall funds be withdrawn for

the purposes of providing community facilities that do not provide a commercial rate of return,

unless specifically decided otherwise by the Council.

· Council Policy SG14 Investments – Property and Other Non-Current Assets also refers.

Source of Income

· Net proceeds of sale of nominated freehold properties, unless otherwise resolved by Council.

· Net proceeds from the sale of miscellaneous parcels of land, unless otherwise resolved by Council.

· Transfer from municipal fund of principal repayment equivalent for Loan 189 (Queensgate) that was

paid out in January 2005 using funds from the Investment Reserve.

· Net proceeds from the winding up of the City of Fremantle Trust Fund as per the City of Fremantle

and Town of East Fremantle Trust Funds (Amendment and Expiry) Bill 2013.

(ii) 5 Year Plan & Asset Maintenance Reserves

(b) Heritage Places Reserve

· The Heritage Property Acquisition & Major Renewal Reserve was amalgamated with the

Heritage Places Reserve and the purpose and sources of funding added to the Heritage

Places Reserve in the 2012/2013 Budget.

Purpose of Reserve

· Finance the major upgrading and maintenance (including painting) to the Fremantle Town Hall.

· Conserve heritage places already owned by or vested in the Council.

· Augment external funds allocated to the City for the purpose of heritage conservation.

· Provide assistance to other owners of heritage places within the municipality where Council is

satisfied that this is a proper, cost-effective and lawful use of the funds.

· To administer conservation fund appeals.

· To finance the additional costs of higher specified infrastructure improvements (e.g., footpaths,

roads, landscaping, buildings, etc) to areas abutting or adjacent to heritage places where

the higher specifications are incurred to maintain the area in sympathy with the heritage place.

· Purchase heritage properties within the municipality of Fremantle, which:

· Are in a distinct need of conservation.

· Council can conserve according to the Burra Charter principles

CITY OF FREMANTLE



Page 48

CITY OF FREMANTLE



14. RESERVES - CASH BACKED (continued)

(b) Heritage Places Reserve (continued)

· Enable Council to demonstrate the Burra Charter model of conservation for others to follow; or

· In Council’s estimation would not otherwise be conserved (restored) in accordance with

Burra Charter principles.

· Finance major renewal, restoration or maintenance to heritage properties.

· Council Policy SG30 Heritage Places Reserve also refers.

Source of Income

· Municipal Fund contribution as approved by Council in the Annual Budget.

· Net sale of proceeds from sale of properties whose initial acquisition and restoration was

financed from this reserve.

(c) Parking Dividend Equalisation Reserve

Purpose of Reserve

· Provide a smoothing out of revenue contributions to municipal operations from commercial parking

activities. That is to be achieved as follows:- (a) by transferring net profits in excess of budget to

the reserve, and (b) if required, when there is a material (i.e., plus 1%) net loss, transferring funds

from the reserve to municipal fund to compensate for the loss.

· Fund commercial parking capital equipment and facilities or parking infringement capital equipment

and facilities to the extent that the funds available in the reserve exceed 2.5% of budgeted gross

parking revenue.

Source of Income

· Transfer from the municipal fund: - (i) net profit on commercial parking operations exceeding a set

figure in the budget. Note: Net profit is calculated including depreciation and allocated support

service costs, but excludes capital; and/or (ii) Transfer from the municipal fund amount(s)

determined by Council through the Adopted Budget or Budget Review in relation to parking operations.

· Transfer from municipal fund amount(s) determined by Council through the Adopted Budget

or Budget Review in relation to parking infringement operations.

· Net proceeds from sale of parking facilities as determined by Council through the Adopted Budget

or Budget Review.

(d) Parks, Recreation and Facilities Reserve

Purpose of Reserve

· Finance improvements within the South Fremantle Tip Site reserve.

· Finance improvements within the Kings Square reserve.

· Finance tourism projects within the city.

· Finance facilities for sporting clubs on a self supporting loan basis in accordance with Council

guidelines for such advances to clubs.

· Finance improvements within the Port & Leighton Beach reserve.

· Finance capital works and improvements at Fremantle Oval.

· Finance improvements or major refurbishments to other parks and recreation facilities within the

municipality.

Source of Income

· Municipal Fund contribution as approved by Council in the Annual Budget.

Page 49

CITY OF FREMANTLE




(e) Fremantle Markets Conservation Reserve

Purpose of Reserve

· Fund conservation works to the Fremantle Markets.

Source of Income

· Contribution by lessee on signing of new lease in June 2008.

· Increase of rent derived from the premises for the first ten years of the lease commencing in June

2008 as a minimum to assist in obtaining external funding for implementing the Conservation Plan.

(f) Renewable Energy Investment Reserve

Purpose of Reserve

· To purchase sufficient carbon offsets to maintain the City's carbon neutral status. Remaining funds

will then be used to invest in financially attractive renewable energy projects. These projects must

result in "additional" renewable energy generation. If no financially attractive renewable energy

projects can be identified, the fund will accumulate that year's contribution.

Source of Income


or Budget Review.

(g) Leighton Precinct Maintenance

Purpose of Reserve

· To hold any specified area rate income raised during the financial year that were unspent

at 30 June in relation to the Leighton Precinct maintenance.

· To fund the above normal costs associated with maintaining the higher standard of the landscaping

of the Leighton residential area.

Source of Income

· Revenue raised from a specified area rate that was unspent at the end of the financial year, i.e.,

30 June.

(h) Leisure Centre Upgrade

Purpose of Reserve

· Provide funds for major upgrading and refurbishment works at the Fremantle Leisure Centre.

Source of Income

· Transfer from the Investment Reserve as approved by Council.


or Budget Review.

(i) Fremantle Town Hall Refurbishment

Purpose of Reserve

· Provide funds for major refurbishment of the historic Fremantle Town Hall.

Source of Income



or Budget Review.

Page 50


(j) Cantonment Hill Master Plan

Purpose of Reserve

· Fund capital works at Cantonment Hill in accordance with the Cantonment Hill Master Plan.

Source of Income



or Budget Review.

(k) Kings Square Improvements

Purpose of Reserve

· Fund capital works improvements to Kings Square.

Source of Income



or Budget Review.

(l) Play Spaces

Purpose of Reserve

· Fund capital works for play spaces, which can cover playground equipment and soft fall.

Source of Income



or Budget Review.

(m) Sustainability Reserve

Purpose of Reserve

· Fund sustainability plus carbon neutral and/or carbon friendly initiatives.

Source of Income



or Budget Review.

(n) Stan Reilly Property Re-Development Reserve

Purpose of Reserve

· Fund capital works for the re-development of the Stan Reilly site.

Source of Income



or Budget Review.

(o) HACC Asset Replacement Reserve

Purpose of Reserve

· Fund capital acquisitions for the Home & Community Care Program (HACC).

Source of Income

· Transfer from the Cash Operating Surplus of HACC Program as agreed by funding agency.

CITY OF FREMANTLE



Page 51

15. REVALUATION SURPLUS 2015 2014

$ $

Revaluation surpluses have arisen on revaluation of the following

classes of non-current assets:

(a) Land Freehold

Opening balance 125,800,461 129,421,825

Revaluation increment - -

Revaluation decrement - (3,621,364)

125,800,461 125,800,461

(b) Art Collection

Opening balance 538,385 538,385

Revaluation increment 688,493 -

Revaluation decrement - -

1,226,878 538,385

(c) Roads

Opening balance 134,086,968 134,086,968

Revaluation increment (35,755,425) -


98,331,543 134,086,968

(d) Footpaths

Opening balance 14,123,993 14,123,993

Revaluation increment 11,821,346 -


25,945,339 14,123,993

(e) Drainage

Opening balance 4,046,618 4,046,618

Revaluation increment 32,219,250 -


36,265,868 4,046,618

CITY OF FREMANTLE



Page 52

15. REVALUATION SURPLUS (continued) 2015 2014

$ $

(f) Parks & Ovals


Revaluation increment (1,614,679) -


975,843 2,590,522

(g) Buildings on Reserves

Opening balance 38,908,995 44,131,209

Revaluation increment (189,619) -

Revaluation decrement - (5,222,214)

38,719,376 38,908,995

(h) Vested Land



Revaluation decrement - (250,120)

1,249,878 1,249,878

(i) Furniture & Equipment

Opening balance 98,552 98,552



98,552 98,552

TOTAL ASSET REVALUATION SURPLUS 328,613,738 321,444,372

CITY OF FREMANTLE



Page 53

CITY OF FREMANTLE



16. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents,

net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the

related items in the Statement of Financial Position as follows:

2015 2015 2014

$ Budget $

$

Cash and cash equivalents 45,008,107 74,100,000 39,450,065

(b) Reconciliation of Net Cash Provided By

Operating Activities to Net Result

Net result 2,521,178 6,086,306 2,479,618

Non-cash flows in Net result:

Depreciation 7,425,363 7,332,019 7,337,837

(Profit)/Loss on sale of asset 204,099 (3,030,867) 614,339

(Gain)/Loss on revaluation of fixed assets - - (87,354)

Change of Equity-SMRC (344,001) (196,746)

Changes in assets and liabilities:

(Increase)/Decrease in receivables 642,515 300,000 (696,089)

(Increase)/Decrease in inventories (8,424) - (1,984)

Increase/(Decrease) in payables 1,626,248 1,142,104 723,066

Increase/(Decrease) in provisions 804,718 500,000 370,760

Grants contributions for

the development of assets (2,025,218) (3,230,135) (3,043,455)

Net cash from operating activities 10,846,478 9,099,427 7,499,992

2015 2014

(c) Undrawn Borrowing Facilities $ $

Credit Standby Arrangements

Bank overdraft limit - 250,000

Bank overdraft at balance date - -

Credit card limit 450,000 450,000

Credit card balance at balance date - -

Total amount of credit unused 450,000 700,000

Loan facilities

Loan facilities - current 2,471,326 1,491,418

Loan facilities - non-current 17,816,593 9,737,890

Total facilities in use at balance date 20,287,919 11,229,308

Unused loan facilities at balance date 1,072,691 1,114,441

Page 54

CITY OF FREMANTLE



17. CONTINGENT LIABILITIES

The City has guaranteed by way of agreement its share of the Loan Liability to the Southern

Metropolitan Regional Council (SMRC) and the Western Australian Treasury Corporation (funding

body). The City's share of the outstanding loan liability of the Southern Metropolitan Regional

Council (SMRC) as at 30 June 2015 is $3,453,550 (representing 12.13% of $28,463,532).

This is made up of $3,260,950 for the Resource Recovery Centre loan liability and $192,600 for

the SMRC Administration loan liability.

2015 2014

18. CAPITAL AND LEASING COMMITMENTS $ $

(a) Operating Lease Commitments

Payable:

- not later than one year 49,650 49,650

- later than one year but not later than five years 74,475 124,125

- later than five years - -

124,125 173,775

(b) Rental Agreement Commitments

Non-cancellable rental agreements

contracted for but not capitalised in

the accounts.

Payable:

- not later than one year 416,731 549,396

- later than one year but not later than five years 521,177 225,065

- later than five years - -

937,908 774,461

(c) Capital Expenditure Commitments

Contracted for:

- capital expenditure projects 1,966,595 652,403

- plant & equipment purchases 16,390 16,390

- acquisition of land - 935,000

Payable:

- not later than one year 1,982,985 1,603,793

Non-cancellable operating leases contracted for but

The City of Fremantle did not have any future operating lease commitments at the reporting date.

Page 55

CITY OF FREMANTLE



19. INVESTMENT IN REGIONAL COUNCIL USING THE EQUITY METHOD

The City is a participant in the Canning Vale Regional Resource Recovery Centre (RRRC).

The RRRC is controlled by a regional local government established in accordance with the Local

Government Act 1995. The regional local government, being the Southern Metropolitan Regional

Council (SMRC), consists of five local governments of which four are participants in the Canning

Vale RRRC.

Participating Local Governments are required to make an annual contributions towards the acquisition

of any asset of a capital nature required by the project plus pay gate fees for each tonne of waste

they deliver to the facility. The capital costs for each participating Local Government member is

based on the Australian Bureau of Statistics population statistics. Each project participant will

develop equity in the project equal to the relevant proportion of the total capital loan repayments

made by that project participant. The City of Fremantle's interest in the RRRC is 12.23 per cent.

The City of Fremantle has guaranteed, by way of agreement, its share of the Loan Liability to the

SMRC and the Western Australian Treasury Corporation (funding body) as per Note 17. The City of

Fremantle's share of the outstanding loan liabilities of SMRC at 30 June 2015 is $3,453,550

(audited).

Related Party transactions with the SMRC and RRRC amount to $2,970,017 for 2014/2015.

These are made up of loan repayments for $459,582 membership fees for $98,913 and

waste and recycling fees for $2,411,522.

Audited Unaudited

2015 2014

$ $

The City's share in the net assets of the SMRC (excluding equity) 2,445,405 2,101,404

Equity Ratio 10.80% 10.69%

Represented by Share of Joint Venture entity's Financial Position:

Current assets 2,592,857 2,348,184

Non Current assets 7,340,323 8,016,246

Total assets 9,933,180 10,364,430

Current Liabilities 1,544,061 1,577,017

Non Current Liabilities 2,490,164 2,825,386

Total Liabilities 4,034,225 4,402,403

LESS: City of Fremantle's share of SMRC Loan Liability 3,453,550 3,860,623

Net assets 2,445,405 2,101,404

Net Increase / (Decrease) in Equity - SMRC Joint Venture 344,001 196,746

Page 56

CITY OF FREMANTLE



20. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

2015 2014

$ $

Governance 59,582,800 62,161,075

General purpose funding 45,308,496 39,911,906

Law, order, public safety 1,155,535 1,205,901

Health 30,260 40,343

Education and welfare 9,222,071 9,554,284

Community amenities 134,975 24,902

Recreation and culture 86,031,286 85,886,069

Transport 230,197,817 221,892,319

Economic services 11,734 10,575

Other property and services 102,474,770 92,282,249

Unallocated - -

534,149,744 512,969,623

2015 2014 2013

21. FINANCIAL RATIOS

Current ratio 1.04 0.97 1.08

Asset sustainability ratio 1.79 1.06 0.51

Debt service cover ratio 4.92 3.71 4.49

Operating surplus ratio 0.01 (0.01) (0.00)

Own source revenue coverage ratio 0.93 0.93 0.91

Asset Consumption Ratio 66.40% 50.98% 51.47%

Asset Renewal Funding Ratio 49.60% 46.26% 46.69%

The above ratios are calculated as follows:

Current ratio current assets minus restricted assets

current liabilities minus liabilities associated

with restricted assets

Asset sustainability ratio

Depreciation expenses

Debt service cover ratio annual operating surplus before interest and depreciation

principal and interest

Operating surplus ratio operating revenue minus operating expenses

own source operating revenue

Own source revenue coverage ratio own source operating revenue

operating expenses

Asset Consumption Ratio depreciated replacement cost of assets

current replacement cost of depreciable assets

Asset Renewal Funding Ratio NPV of planned capital renewal over 10 years

NPV of required capital expenditure over 10 years

capital renewal and replacement expenditure

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CITY OF FREMANTLE



22. TRUST FUNDS

Funds held at balance date over which the City of Fremantle has no control and which are not included in

the financial statements are as follows:

Balance Amounts Amounts Balance

1 July 2014 Received Paid 30 June 2015

$ $ ($) $

Cash In Lieu of Public Open Space*

37 Strang St Beaconsfield Sub-division 347,929 12,671 (106,629) 253,971

17-21 Mather Rd Subdivision 172,343 6,276 (175,531) 3,088

Lot 16 Curedale/Lefroy Rd Beaconsfield 67,928 2,473 - 70,401

10 Jean St subdivision 40,587 1,478 - 42,065

Unclaimed Funds - 6,990 - 6,990

628,787 29,888 (282,160) 376,515

23 RESTRICTED CASH

Funds held at balance date over which the City has control but which have

conditions attached.

Balance Amounts Amounts Balance

Detail 1 July 2014 Received Paid 30 June 2015

$ $ ($) $

Cash In Lieu of Parking 469,360 - - 469,360

Cash In Lieu of Public

Open Space

29 Annie Street 67,700 - - 67,700

Christian Brothers Site 131,830 - - 131,830

Lot 502 Lefroy Road 61,600 - - 61,600

Starline Gardens 2,940 - - 2,940

Swan Hardware 26,898 - - 26,898

Culver/Naylor 15,242 - (15,242) -

Bequests

Gwenth Ewens 34,675 3,305 (9,127) 28,853

John Francis Boyd 2,700 - - 2,700

Victor Felstead 32,144 4,375 (28,000) 8,519

Miscellaneous 85,632 965,518 (671,696) 379,454

930,721 973,198 (724,065) 1,179,854

24. DISPOSALS OF ASSETS - 2014/15 FINANCIAL YEAR

The following assets were disposed of during the year.

Net Book Value Sale Price Profit (Loss)

Actual Budget Actual Budget Actual Budget

$ $ $ $ $ $

Asset Class

Investment Land & Building 2,600,000 21,500,000 2,466,364 25,700,000 (133,636) 4,200,000

Fleet and Heavy Plant 139,882 214,654 123,283 202,999 (16,599) (11,655)

Furniture and Equipment 4,623 - 3,322 - (1,301) -

Art Collections 52,563 - - - (52,563) -

Land & Building - Freehold - 13,907,478 - 12,750,000 - (1,157,478)

2,797,068 35,622,132 2,592,969 38,652,999 (204,099) 3,030,867

Profit - 4,200,000

Loss (204,099) (1,169,133)

(204,099) 3,030,867

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CITY OF FREMANTLE



25. INFORMATION ON BORROWINGS

(a) Repayments - Debentures

Principal Principal Principal Interest

New Repayments 30 June 2015 Repayments

Loans Actual Budget Actual Budget Actual Budget

Particulars $ $ $ $ $ $ $ $

223 Streetscape Program 220,292 - 35,830 35,830 184,462 184,462 14,276 14,323

225 Streets Ahead (1) 470,299 - 62,136 62,136 408,163 408,163 30,383 30,485

232 Streets Ahead (2) 519,027 - 57,696 57,696 461,331 461,331 32,070 32,185

236 Streets Ahead (3) 458,428 - 43,207 43,207 415,221 415,221 28,644 28,748

242 Booyembara Park 7,488 - 7,488 7,488 - - - -

244 Stan Reilly Building Upgrade 1,988 - 1,988 1,988 - - - -

245 City Blueprint Projects 13,585 - 13,585 13,585 - - - -

247 City Blueprint Projects 123,094 - 97,775 97,775 25,319 25,319 3,878 3,987

248 Footpath Replacements 47,466 - 37,702 37,702 9,764 9,764 1,496 1,538



265 Footpath Replacement 155,451 - 32,273 32,273 123,178 123,178 10,331 10,375

268 Local Government Software Acquisition 28,287 - 28,287 28,287 - - - -

269 Heritage Restoration Projects 364,984 - 60,773 60,773 304,211 304,211 20,484 20,570

271 Road Asset Program 692,844 - 94,463 94,463 598,381 598,381 38,034 38,175

272 Footpath Asset Program 381,064 - 51,955 51,955 329,109 329,109 20,919 20,996



279 Fremantle Markets Upgrade 388,929 - 44,849 44,849 344,080 344,080 20,287 20,356

280 Road Rehabilitation & Improvement Program 511,411 - 53,567 53,566 457,844 457,845 19,035 19,117

281 Footpath Replacement Program 297,948 - 31,208 31,208 266,740 266,740 11,090 11,138

283 Fremantle Markets Upgrade 340,941 - 35,711 35,711 305,230 305,230 12,690 12,745


289 Road Asset Program 1,760,000 - 104,305 104,305 1,655,695 1,655,695 74,143 74,387


291 Drainage Asset Program 300,000 - 17,779 17,779 282,221 282,221 12,638 12,679

294 Acquisition 73 Hampton Road 935,000 - 56,619 56,619 878,381 878,381 38,288 38,417

295 Road Asset Program - 900,000 - - 900,000 900,000 - -

296 Footpath Asset Program - 258,030 - - 258,030 258,030 - -

297 Drainage Asset Program - 300,000 - - 300,000 300,000 - -

298 Leighton Beach Kiosk & Changerooms - 1,422,000 - - 1,422,000 1,200,000 - -

299 Works Depot Property - 8,000,000 - - 8,000,000 8,000,000 - -

10,279,844 10,880,030 1,226,556 1,226,555 19,933,318 19,711,319 494,690 496,629

1 July

2014

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CITY OF FREMANTLE



25. INFORMATION ON BORROWINGS

(a)

Principal New Principal Principal Interest

1 July 2014 Loans Repayments Repayments

$ $ Actual Budget Actual Budget Actual Budget

Self Supporting Loans $ $ $ $ $ $

251 Silver Chain - Self Supporting Loan 619,464 - 264,863 264,863 354,601 354,601 28,880 29,190

288 Fremantle Workers Club- Self Supporting Loan 330,000 - 330,000 - - 330,000 29,533 13,645

Sub Total of Self Supporting Loans* 949,464 - 594,863 264,863 354,601 684,601 58,413 42,835

Total as per Consolidated Financial Statements 11,229,308 10,880,030 1,821,419 1,491,418 20,287,919 20,395,920 553,103 539,464

(*) Self supporting loan financed by payments from third parties. All other loan repayments were financed by general purpose revenue.

(b) New Debentures - 2014/15

Amount Borrowed Institution Loan Term Total Interest Amount Used Balance

Type (Years) Interest & Rate Unspent

Actual Budget Charges % Actual Budget $

Particulars/Purpose $ $ $ $ $

295 Road Asset Program 900,000 900,000 WATC Debenture 10 169,085 3.44% 900,000 900,000 -

296 Footpath Asset Program 258,030 258,030 WATC Debenture 10 48,477 3.44% 258,030 258,030 -

297 Drainage Asset Program 300,000 300,000 WATC Debenture 10 56,362 3.44% 300,000 300,000 -

298 Leighton Beach Kiosk 1,422,000 1,200,000 WATC Debenture 10 267,154 3.44% 1,422,000 1,200,000 -

299 Works Depot Property* 8,000,000 8,000,000 WATC Debenture 3 645,319 2.65% 8,000,000 8,000,000 -

10,880,030 10,658,030 1,186,397 10,880,030 10,658,030 -

(c) Unspent Debentures

Date Balance Borrowed Expended Balance

Borrowed 1 July 14 During During 30 June 15

$ Year Year $

Particulars $ $

283 Fremantle Markets Upgrade 2011/2012 103,872 - 103,872 -

294 Acquisition 73 Hampton Road 2013/2014 935,000 - 935,000 -

290 Footpath Asset Program 2013/2014 75,569 - 75,569 -

296 Footpath Asset Program 2014/2015 - 258,030 237,624 20,406

298 Leighton Beach Kiosk 2014/2015 - 1,422,000 569,715 852,285

299 Works Depot Property-2 Jones Street 2014/2015 - 8,000,000 7,800,000 200,000

1,114,441 9,680,030 9,721,780 1,072,691

(d) Overdraft

Council established an overdraft facility of $250,000 to assist with short term liquidity requirements. The balance of the bank overdraft at 1 July 2014 and 30 June 2015 was $nil.

* Loan 299 to acquire the works depot property is an interest only loan.

Repayments - Debentures (continued)

30 June 2015

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CITY OF FREMANTLE



26. RATING INFORMATION - 2014/15 FINANCIAL YEAR

(a) Rates Rate in Number Rateable Rate Interim Total Budget Budget Budget Budget

$ of Value Revenue Rates Revenue Rate Interim Back Total

Properties $ $ $ $ Revenue Rate Rate Revenue

RATE TYPE $ $ $ $

Differential general rate / general rate

Gross rental value valuations

Residential Improved 0.060709 8,325 243,165,577 14,762,339 147,135 14,909,474 14,762,339 59,581 - 14,821,920

Commercial and Industrial General 0.071641 1,378 146,010,413 10,460,332 11,761 10,472,093 10,410,582 30,455 - 10,441,037

City Centre Commercial 0.075656 377 81,589,682 6,172,749 (57,479) 6,115,270 6,263,823 16,385 - 6,280,208

Residential Vacant Land 0.100777 222 5,576,084 561,941 55,345 617,286 559,296 1,454 - 560,750

Vacant Commercial or Industrial 0.121417 36 1,541,259 187,135 (62,608) 124,527 192,150 - - 192,150

Nightclubs 0.121416 3 2,206,332 267,884 - 267,884 267,884 - - 267,884

Sub-Totals 10,341 480,089,347 32,412,380 94,154 32,506,534 32,456,074 107,875 - 32,563,949

Minimum

Minimum payment $

Gross rental value valuations

Residential Improved 1164.00 4,185 69,057,844 4,871,340 - 4,871,340 4,869,012 12,877 - 4,881,889

Commercial and Industrial General 1164.00 248 2,651,531 288,672 - 288,672 288,672 - - 288,672

City Centre Commercial 1164.00 52 774,030 60,528 - 60,528 75,660 - - 75,660

Residential Vacant Land 1050.00 192 1,507,507 201,600 - 201,600 199,500 - - 199,500

Vacant Commercial or Industrial 1164.00 9 49,230 10,476 - 10,476 10,476 - - 10,476

Nightclubs 1164.00 - - - - - - - - -

Sub-Totals 4,686 74,040,142 5,432,616 - 5,432,616 5,443,320 12,877 - 5,456,197

37,939,150 38,020,146

Ex-gratia rates - -

Total amount raised from general rate 37,939,150 38,020,146

Specified Area Rate (refer note 27) 137,385 138,000

Totals 38,076,535 38,158,146

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CITY OF FREMANTLE



26. RATING INFORMATION - 2014/15 FINANCIAL YEAR (Continued)

(b)

2015 2015 2014

Carried Forward) Brought Forward) Carried Forward)

$ $ $

Surplus/(Deficit) 1 July 14 brought forward 3,934,439 1,856,988 1,856,988

Comprises:

Cash and cash equivalents

Unrestricted 16,625,874 11,551,907 11,551,907

Restricted 28,382,233 27,898,158 27,898,158

Receivables

Rates outstanding 264,154 227,827 227,827

Sundry debtors 1,297,497 1,578,580 1,578,580

GST receivable 581,005 995,719 995,719

Loans - clubs/institutions 211,333 200,237 200,237

Inventories

Consumables 76,998 78,703 78,703

Goods for Sale 101,765 91,636 91,636

Less:

Trade and other payables

Sundry creditors (6,169,081) (4,864,005) (4,864,005)

Accrued interest on debentures (119,181) (115,194) (115,194)

Accrued salaries and wages (929,027) (655,855) (655,855)

Debtors invoiced in advance (274,157) (331,932) (331,932)

GST payable (235,000) (782,862) (782,862)

Bonds and deposits held (2,828,407) (2,178,757) (2,178,757)

Current portion of long term borrowings

Secured by Floating Charge Debentures (2,471,326) (1,491,418) (1,491,418)

Provisions

Provision for annual leave (3,003,565) (2,427,764) (2,427,764)

Provision for long service leave (3,047,129) (2,735,248) (2,735,248)

Fremantle Market-Prepaid Lease (12,964) (12,964) (12,964)

Other Provisions (532,980) (584,728) (584,728)

Net current assets 27,918,042 26,442,040 26,442,040

Less:

Reserves - restricted cash (25,834,023) (25,431,452) (25,431,452)

Non Current Leave Provisions (783,024) (801,277) (801,277)

Loans - Clubs/Institutions (211,333) (200,237) (200,237)

Add:

Secured by Floating Charge Debentures 2,471,326 1,491,418 1,491,418

Non Current Rates Debtors 373,451 356,496 356,496

Surplus/(deficit) 3,934,439 1,856,988 1,856,988

Difference

in the 2015 audited financial report and the surplus/(deficit) carried forward position as disclosed

in the 2014 audited financial report.

Information on Surplus/(Deficit) Brought Forward

(30 June 2014

There was no difference between the surplus/(deficit) 1 July 2014 brought forward position used

(1 July 2014(30 June 2015

Page 62

27.

Rate in Basis Rateable Rate Budget Applied Budget

$ of Value Revenue Rate to Costs Applied

Rate $ $ Revenue $ to Costs

$ $

Security Levy 0.001010 GRV 98,400,000 99,384 100,000 99,384 100,000

Leighton Precinct Maintenance 0.004804 GRV 7,910,284 38,001 38,000 - -

137,385 138,000 99,384 100,000

(a) Security Service.

In 2004/2005, Council introduced a security service for a specified area of the City Centre which is

recovered via a specified area rate. The area covered by the service is those areas within the following

boundary:- “the area bounded by Parry Street, South Terrace, Suffolk Street, Fishing Boat Harbour (west

of Mews Road) and along the coast to Bathers Beach, Fleet Street, Phillimore Street, and Elder Place.”

The objectives of the service are:-

(a) Reduce anti-social behaviour on the street, e.g. theft, vandalism, graffiti

(b) Reduce noise and disturbance for residents

(c) Reduce illegal drug and street drinking activity

(d) Better monitor and respond to impacts of licensed premises

(e) Achieve safer, smoother access and transport solutions at “night hotspot times”

The services/facilities that it is intended to provide are:-

Physical presence on the street

Call out/response capability

Lighting & Infrastructure Improvements

Inspection regime

Installation, maintenance and/or monitoring of security cameras

(b) Leighton Precinct Maintenance

In 2011/2012, Council introduced a specified area rate to fund the above normal costs associated with maintaining the higher standard

of the landscaping of the Leighton residential area.

28. SERVICE CHARGES - 2014/15 FINANCIAL YEAR

Amount Revenue Budget Applied Budget

of Raised Revenue to Applied

Charge $ $ Service to

$ Costs Costs

$ $

Underground Power East* - (3,274) - (3,274) -

(3,274) - (3,274) -

*Refund under Underground Power East Scheme.

CITY OF FREMANTLE



SPECIFIED AREA RATE - 2014/15 FINANCIAL YEAR

Page 63

29. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS

- 2014/15 FINANCIAL YEAR

Type Disc % Total Budget

Cost/ Cost/

Value Value

$ $

Rates Waiver 210,550 295,245

Rates Write Off 139 -

Parking & Infringement Write Off 11,909 -

Sundry Debtors Write Off 125,391 -

347,989 295,245

30. INTEREST CHARGES AND INSTALMENTS - 2014/15 FINANCIAL YEAR

Interest Admin. Revenue Budgeted

Rate Charge $ Revenue

% $ $

Interest on unpaid rates 11.00% - 80,765 100,000

Interest on instalments plan 5.50% - 232,548 184,000

Pensioner deferred rate interest 2.85% - 14,082 11,000

Total Interest 327,395 295,000

Charges on instalment plan 33 143,305 207,900

470,700 502,900

Ratepayers had the option of paying rates in four equal instalments, due on 25 August 2014,

27 October 2014, 19 January 2015 and 16 March 2015. Administration charges and

interest applied for the final three instalments.

2015 2014

31. FEES & CHARGES $ $

Governance 51,222 34,906

General purpose funding 272,518 256,151

Law, order, public safety 2,252,233 2,231,261

Health 472,121 467,661

Education and welfare 112,938 121,322

Housing 44,585 84,096

Community amenities 1,707,338 1,796,658


Transport 10,971,345 11,586,032

Economic services 603,952 497,747

Other property and services 3,639,384 3,732,032

25,384,773 23,749,221

CITY OF FREMANTLE



Page 64

32. GRANT REVENUE

Grants, subsidies and contributions are included as operating

revenues in the Statement of Comprehensive Income:

2015 2014

By Nature or Type: $ $

Operating grants, subsidies and contributions 5,679,736 4,552,675

Non-operating grants, subsidies and contributions 2,025,218 3,043,455

7,704,954 7,596,130

By Program:

Governance 280,299 203,171

General purpose funding 1,589,058 511,893

Law, order, public safety 4,672 70,000

Health - 5,373

Education and welfare 2,061,953 1,878,708


Transport 1,415,702 1,126,029

Other property and services 273,973 189,560

7,704,954 7,596,130

Operating Grants Classified for Operating Surplus Ratio

- Operating Grants, Contributions & Donations 4,967,145 3,919,580

- Reimbursement & Recoveries 712,591 633,095

5,679,736 4,552,675

33. EMPLOYEE NUMBERS

The number of full-time equivalent

employees at balance date 392 384

2015 2015 2014

34. ELECTED MEMBERS REMUNERATION $ Budget $

$

The following fees, expenses and allowances were

paid to council members and/or the president.

Mayor's Fees, Allowances & Motor Vehicle 134,626 131,250 133,172

Deputy Mayor's Fees & Allowances 48,750 49,575 48,750

Elected Member Fees 308,864 317,735 307,501

Elected Member Expense Reimbursement & Conferences 69,506 86,500 68,802

561,746 585,060 558,225

CITY OF FREMANTLE



Page 65

35. MAJOR LAND TRANSACTIONS

Kings Square Precinct Redevelopment and New Administration Building

At a special meeting on 12 November 2012 council approved the Kings Square Project Business Plan for public

advertising. The Kings Square Project is the integrated development and redevelopment of a number of City-owned

properties and functions - the library, administration offices, Queensgate Centre, Queensgate car park, Spicer site,

Fremantle Visitor Centre and the public spaces within the Kings Square precinct - in conjunction with the

redevelopment of the adjoining Myer building owned by Sirona Capital Management (Sirona).

The City of Fremantle and Sirona have signed a contract in regard to this redevelopment which includes milestones

and is estimated to occur over a three to five year period.

Acquisition of Property for New Works Depot (2 Jones Street O'Connor )

On 28 May 2014 Council approved the draft business plan for the acquisition of 2 Jones Street O'Connor for

public advertising. Subsequent to advertising of the business plan an offer was made to purchase the property and

settlement occurred in September 2014.

Disposal of Knutsford Street Works Depot

The budget included allowance for the disposal of the Knutsford Street Works Depot. A business plan was not

advertised during the financial year and it has been budgeted for disposal in 2015-16.

2015 2015 2014

(b) Current year transactions $ Budget $

$

Capital income

- Sale proceeds

Disposal of Knutsford Street Depot - 10,000,000 -

- Loan Borrowings

New Works Depot - 2 Jones St. 8,000,000 8,000,000 -

Capital expenditure

New Works Depot - 2 Jones St. (7,800,000) (8,000,000) -

New Admin Build and Library (643,478) (500,000) -

(443,478) 9,500,000 -

(c) Expected Future Cash Flows*

2016 2017 2018 2019 Total

$ $ $ $ $

Cash outflows

Loan Repayment - Depot 2 Jones St. - (14,000,000) - - (14,000,000)

Capital Expenditure

New Works Depot (7,900,000) - - - (7,900,000)

Kings Square Precinct

Redevelopment (500,000) (30,600,000) (13,800,000) - (44,900,000)

Transfer to Reserve - Sale Proceeds (29,150,000) - - - (29,150,000)

(37,550,000) (44,600,000) (13,800,000) - (95,950,000)

Cash inflows

- Loan Proceeds

New Works Depot - 2 Jones St. 7,700,000 - - - 7,700,000

New Admin Build and Library - 3,600,000 13,800,000 - 17,400,000

- Investment Reserve

- Transfer From for New Admin Build 500,000 13,800,000 - - 14,300,000

- Sale Proceeds

City's Current Depot - 10,000,000 - - 10,000,000

Spicers Site 6,650,000 - - - 6,650,000

Queensgate Centre 6,000,000 - - - 6,000,000

Queensgate Carpark 16,500,000 - - - 16,500,000

37,350,000 27,400,000 13,800,000 - 78,550,000

Net cash flows (200,000) (17,200,000) - - (17,400,000)

*Refer 2015-16 Budget and Long Term Financial Plan 2015-25

CITY OF FREMANTLE



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CITY OF FREMANTLE



36. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

City of Fremantle did not participate in any trading undertakings or major trading undertakings during

37. EVENTS POST 30 JUNE 2015

Nil.

38. FINANCIAL RISK MANAGEMENT

foreign currency risk.

Carrying Value Fair Value

2015 2014 2015 2014

$ $ $ $

Financial assets

Cash and cash equivalents 45,008,107 39,450,065 45,008,107 39,450,065

Receivables 2,781,609 3,954,361 2,781,609 3,954,361

47,789,716 43,404,426 47,789,716 43,404,426

Financial liabilities

Payables 10,554,853 8,928,605 10,554,853 8,928,605

Borrowings 20,287,919 11,229,308 20,287,919 11,229,308

30,842,772 20,157,913 30,842,772 20,157,913

Fair value is determined as follows:

• Cash and cash equivalents, receivables, payables - estimated to the carrying value which

approximates net market value.

• Borrowings, held to maturity investments, estimated future cash flows discounted by the current

market interest rates applicable to assets and liabilities with similar risk profiles.

• Financial assets at fair value through profit and loss, available for sale financial assets - based on

quoted market prices at the reporting date or independent valuation.

the 2014/15 financial year.

The City of Fremantle’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk

The City of Fremantle does not engage in transactions expressed in foreign currencies and is therefore not subject

Financial risk management is carried out by the finance area under policies approved by the Council.

interest rate risk. The City of Fremantle’s overall risk management focuses on the unpredictability of financial

markets and seeks to minimise potential adverse effects on the financial performance of the City of Fremantle.

The City of Fremantle held the following financial instruments at balance date:

Page 67

CITY OF FREMANTLE



38. FINANCIAL RISK MANAGEMENT (Continued)

(a) Cash and Cash Equivalents

Financial assets at fair value through profit and loss

Available-for-sale financial assets

Held-to-maturity investments

The major risk associated with investments is price risk - the risk that the capital value of investments

may fluctuate due to changes in market prices, whether these changes are caused by factors specific

to individual financial instruments of their issuers or factors affecting similar instruments traded in a

market.

could affect returns.

2015 2014

$ $

Impact of a 1% (1)

movement in interest rates on cash

- Equity 450,081 394,501

- Statement of Comprehensive Income 450,081 394,501(2)

Notes:(1)

(2)

level of liquidity and preserving capital. The finance area manages the cash and investments portfolio

with the assistance of independent advisers (where applicable). Council has endorsed an investment

policy which requires the city to identify financial institutions which support either direct or indirect

is provided to Council on a monthly basis setting out the make-up and performance of the portfolio.

support of fossil fuel companies and to limit investments in these institutions to the minimum required

which will allow compliance with the portfolio credit and counterparty frameworks. An Investment Report

Cash and investments are also subject to interest rate risk - the risk that movements in interest rates

Another risk associated with cash is credit risk – the risk that a contracting entity will not complete its

The City of Fremantle manages these risks by diversifying its portfolio and only investing in investments

The City of Fremantle’s objective is to maximise its return on cash and investments whilst maintaining an

obligations under a financial instrument resulting in a financial loss to the City of Fremantle.

authorised by Local Government (Financial Management) Regulation 19C . Council also seeks advice

from independent advisers (where considered necessary) before placing any cash and investments.

Sensitivity percentages based on management's expectation of future possible market movements.

Maximum impact.

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CITY OF FREMANTLE




(b) Receivables

2015 2014

Percentage of rates and annual charges

- Current 0.00% 0.00%

- Overdue 100.00% 100.00%

Percentage of other receivables

- Current 59.28% 63.19%

- Overdue 40.72% 36.81%

The level of outstanding receivables is reported to Council monthly and benchmarks are set and

a secured charge over the land – that is, the land can be sold to recover the debt. The City of Fremantle is

to charge interest on overdue rates and annual charges at higher than market rates, which further

encourages payment.

Credit risk on rates and annual charges is minimised by the ability of the City of Fremantle to recover these

The profile of the City of Fremantle’s credit risk at balance date was:

The City of Fremantle makes suitable provision for doubtful receivables as required.

There are no material receivables that have been subject to a re-negotiation of repayment terms.

monitored for acceptable collection performance.

risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The

City of Fremantle manages this risk by monitoring outstanding debt and employing debt recovery policies.

The City of Fremantle’s major receivables comprise rates and annual charges and user charges and fees.

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CITY OF FREMANTLE




(c) Payables

Borrowings

Due Due Due Total

within between after contractual Carrying

1 year 1 & 5 years 5 years cash flows values

$ $ $ $ $

2015

Payables 10,554,853 - - 10,554,853 10,554,853

Borrowings 2,471,326 14,137,745 3,678,848 20,287,919 20,287,919

13,026,179 14,137,745 3,678,848 30,842,772 30,842,772

2014

Payables 8,928,605 - - 8,928,605 8,928,605

Borrowings 1,491,418 5,472,111 4,265,779 11,229,308 11,229,308

10,420,023 5,472,111 4,265,779 20,157,913 20,157,913

Payables and borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations

The contractual undiscounted cash flows of the City of Fremantle’s Payables and Borrowings are set out in the Liquidity Sensitivity Table below:

as and when they fall due. The City of Fremantle manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an

cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required.

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CITY OF FREMANTLE




(c) Payables

Borrowings (continued)

The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk: Weighted

Average

Effective

<1 year >1<2 years >2<3 years >3<4 years >4<5 years >5 years Total Interest Rate

$ $ $ $ $ $ $ %

Year ended 30 June 2015

Payables 10,554,853 - - - - - 10,554,853

Borrowings 2,471,326 1,546,236 1,520,386 9,546,890 1,524,233 3,678,848 20,287,919

Fixed rate

Debentures 2,471,326 1,546,236 1,520,386 9,546,890 1,524,233 3,678,848 20,287,919 4.36%

Weighted average

Effective interest rate 3.90% 3.90% 3.90% 4.53% 4.53% 4.53%

Year ended 30 June 2014

Payables 8,928,605 - - - - - 8,928,605

Borrowings 1,491,418 1,526,565 1,330,932 1,297,812 1,316,802 4,265,779 11,229,308

Fixed rate

Debentures 1,491,418 1,526,565 1,330,932 1,297,812 1,316,802 4,265,779 11,229,308 5.12%

Weighted average

Effective interest rate 5.12% 5.12% 5.12% 5.12% 5.12% 5.12%

manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation.

Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs. The City of Fremantle

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city of fremantle annual report 2014 15 · 2014–15 has seen the city take many steps towards our...

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