financial management report november 2016

Ordinary Meeting of Council 14 December 2016

5.2 FINANCIAL MANAGEMENT REPORT - NOVEMBER 2016

Ward: (All Wards) (Financial Services and Rates)

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Corporate)

KEY ISSUES

• This report provides Council with the suite of financial management reports in order for Council to monitor the financial performance and position of the City.

• A summary page has been developed that includes high level financial information, commentary and graphical representation from the various statements and schedules included in the report.

• Statements included are Financial Activity, Rate Setting, Cash Flow, Comprehensive Income, Financial Position, Changes in Equity, Capital Jobs, Cash and Investments and Net Current Funding.

• A Debtors Schedule has been included that lists the top 10 non-rate debtors (in value). For privacy purposes the names of the debtors are not included, however the report provides insight into the management of the aged debtors.

It is recommended that Council resolve to note the monthly financial management reports for the period ended 30 November 2016.

BACKGROUND

Section 6.4 of the Local Government Act 1995 requires an annual financial report to be prepared as well as such other financial reports as prescribed.

Regulation 34(1) of the Local Government (Financial Management) Regulations 1996 (the Regulations) requires a local government to prepare each month a statement of financial activity reporting on the income and expenditure, as set out in the annual budget. The statement of financial activity is to be supported by such information as is considered relevant by the local government.

A statement of financial activity and any accompanying documents are to be presented at the next ordinary council meeting following the end of the month to which the statement relates, or to the next ordinary council meeting after that meeting.

In addition under regulation 34(5) of the Regulations each financial year, local government is to adopt a percentage or value, calculated in accordance with AASB 1031 to be used in the statement of financial activity for reporting material variances.


The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and position of the City. The materiality threshold adopted by Council, together with the Annual Budget for 2016/2017 is variances greater than 10% of the original adopted budget and a value greater than $10,000.

DETAILS

The financial management report for the period ended November 2016 is included as an attachment to this report.

As the information contained in the Statement of Financial Activity is repeated in the Statement of Comprehensive Income and Financial position, the analysis of the information is included below.

1. Statement of Comprehensive Income

The actual revenue from ordinary activities for the year to date is $153.4m; this is greater than budget by $1.1m.

Expenditure from ordinary activities for the year to date is $57.1m; this is less than budget by $8.4m.

The net result is $104.6m surplus compared to $101.4m budgeted year to date.

2. Statement of Financial Position

Current Assets decreased by $8.4m compared to the previous month. This is mainly due to a reduction in Rates Debtors as a result of interim payments and the second instalment falling due.

Expenditure for capital works in progress, mainly within Buildings and Roads has contributed to the $5.4m increase in Non-Current Assets for November, when compared to the previous month.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of November 2016 with a balance of $179.8m. Cash and Cash Equivalents at the end of November 2015 reflected a balance of $173.4m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending November 2016.


STRATEGIC IMPLICATIONS

Consistent with the City's Strategic Community Plan 2012-2022 Key Result Area - Governance

Objectives: G1.1 - Provide accountable and transparent leadership, and G2.1 - Improve capability and capacity.

Monitoring performance by comparison of budget and actual is an essential management tool to ensure financial performance within acceptable pre determined limits.

STATUTORY IMPLICATIONS

Section 6.4 of the Local Government Act 1995 and regulation 34(1) of the Local Government (Financial Management) Regulations 1996

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolve to:

1) Note the financial statements and report for the month ended 30 November 2016 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

30th November 2016

Contents

1.0 Financial Summary 1.0

2.0 Statements of Comprehensive Income 2.1 By Nature & Type 2.2 By Program 2.3

3.0 Statements of Financial Position & Equity 3.1 Statement of Financial Position 3.2 Statement of Changes in Equity 3.3

4.0 Capital Payment 4.1 Capital Works Schedules 4.2 - 4.7

5.0 Cash and Investments 5.1 Investment Report 5.2 - 5.4

6.0 Debtors Rates Debtors 6.1 Sundry Debtors 6.2

7.0 Statement of Financial Activity 7.1 - 7. (With Variance Analysis Commentary)

Statement of Financial Activity 7. Net Current Funding Position 7. Liquidity Over Three Years 7.

8.0 Other Statutory Reports 8.1 Statement of Cash Flow 8.2 Rate Setting Statement 8.3

1.0

City of Swan - Financial Management Summary Report for the period ended 30th November 2016

2.0 Statement of Comprehensive Income (Performance)

Year to 30th November 2016 Annual AnnualBudget Bgt Var

$000's %

Revenue 153,441 152,301 1% 170,405 90%

Expenses (57,051) (65,431) -15% (156,693) 36%

Profit/Loss 96,390 86,870 10% 13,712 703%

Non-operating 8,191 14,545 -78% 61,473 13%

Net Result 104,581 101,415 3% 75,185 139%

3.0 Statement of Financial Position2016 2016 2016June October November$000's $000's $000's

Current

Assets 143,867 244,119 235,709

Liabilities 36,733 37,021 36,406

Non Current

Assets 1,377,045 1,383,947 1,389,390

Liabilities 41,718 41,579 41,651

Net Assets 1,442,461 1,549,466 1,547,042

4.0 Capital PaymentsYear to 30th November 2016 Annual Annual

Nov Actual/Comm Budget Var Budget Bgt Var

$000's $000's % $000's %

Buildings 15,204 12,864 118% 30,874 49%Drainage 1,820 2,743 66% 6,583 28%

Footpaths 806 448 180% 1,075 75%Parks 2,151 5,558 39% 13,339 16%

Roads 15,182 15,535 98% 37,283 41%P&E, Other 8,688 9,783 89% 23,478 37%

Total 43,851 46,930 93% 112,632 39%

5.0 Cash and InvestmentsVolume Held

October November Ave Interest$000's $000's %

Cash 14,160 15,555 1.2%

24 hr Call - 0 0.0%Cash Mgt - 0 0.0%

Floating Rate - 0 0.0%Term Deposits 163,200 164,200 2.7%

Total 177,360 179,755 2.0%

6.0 Debtors October November Change

$000's $000's %Trade Debtors

Current 84 364 333%> 30 Days 415 15 -96%> 60 Days 118 288 144%> 90 Days 699 792 13%

Total Trade 1,316 1,459 11%Rates Debtors

Rates Debtors 56,389 46,723 -17%Other Debtors 7,791 6,896 -11%

Total Debtors 65,496 55,078 -16%

Actual '$000's Budget '$000's Variance

%

The net result at the end of November was 3% above ytd budget.

Revenue was marginally above budget by 1%.

Operating expenses achieved a below budget result of $8.4m.Employee Costs were underspent by $1.3m due to vacant positions andMaterials & Contracts were underspent by $3.4m mainly due to timingdifferences. Depreciation was also less than budget expectations by$2.8m. Depreciation charge out rates were impacted as a result of achange in the useful lives of assets during the 2015/16 year end assetreview process.

Non-Operating Income was down compared to budget by $6.4m. $4.5mof this is attributed to Capital grants, with the Roads to Recovery grantaccounting for $2.9m. Profit on Disposal of Assets was also under budgetby $2.2m. This is a timing difference which will reduce upon disposal ofassets.

65% of the City's portfolio was invested in non-fossil fuel lending banks at the end of November.

The investment portfolio ytd return was 2.65% vs1.86% pa, surpassing the bank bill benchmark by0.79%.

The RBA left the cash rate unchanged at 1.50%.Australian money markets are pricing in globalinflationary expectations and are now leaningtowards flat rates through 2017 and a rate increaseby mid-2018.

Current Assets decreased by $8.4m compared to theprevious month. This is mainly due to interimpayments and the second instalment for Rates debtorsbeing due in November.

A decrease in Trade and Other Receivables andrestricted Current Assets has contributed to theCurrent Ratio falling slightly to 4.52 in November.

Expenditure for capital works in progress, mainlywithin Buildings and Roads has contributed to the$5.4m increase in Non-Current Assets for November.

1.35

4.58 4.52

1.00 1.00 1.00

-

1.00

2.00

3.00

4.00

5.00

6.00

June 16 Oct-16 Nov-16

C.Assets C.Liabilities

Capital works expenditure was $43.9m at the end of November. Ofthis, $25.5m was actual costs and $18.4m was committed costs.

Buildings have exceeded ytd budget by $2.3m. Significantexpenditure against annual budget was noted for: Midland YouthServices Hub $2.3m, Caversham Community Centre $2.5m, DaytonCommunity Centre $2.7m and Rosher Oval $1.2m.

Roads have realised 98% of $15.5m ytd budget. HazelmereIndustrial Infrastructure Road accounted for $4.9m, Gnangara Road$5.3m, Benara Road $1m and Great Northern Highway/Bishop Road$1.3m.

Works within Parks continue to progress slowly; ytd expenditure was$2.1m compared to $5.5m ytd budget. The following Parks withsignificant budgets have recorded minimal costs: BrabhamNeighbourhood Park $1m budget, Caversham Oval $1.3m budget andParadise Quays $1.6m budget.

0

300

600

900

Current > 30 Days > 60 Days > 90 Days

$000

's

Trade Debtors

October November

AA+ to AA- 71%

A+ to A-

29%

Overall trade debtors increased by 11%.

Current Debtors rose sharply by 333% due toannual advertising invoices raised during the month.The 30 Days debtors declined by 96% partly due tolow invoicing in October and partly due to some debtsbeing paid off. A prosecution debt that remainedoutstanding was the main reason for the 144%increase within the 60 Day debtors.

Rates debtors excluding Emergency ServicesLevy, reduced by $9.7m or 17% on the prior month'sclosing balance. The decrease was significant due tothe first batch of interims and the second instalmentbeing due on the 2nd of November.

2.1

AASB 101.8 requires a financial report to include a "Statement of Comprehensive Income". The definition of "IncomeStatement" at Financial Management Regulation 3 is "income statement (or equivalent) that meets therequirements of Australian Accounting Standards for income statements". By virtue of the changes to terminology inAASB101, we now refer to the "income statement" as the "statement of comprehensive income" as that is the"equivalent" in the context of the Australian Accounting Standards.

The Statements of Comprehensive Income summarise the operating revenue and expenditure for a particular periodof a financial year. The principle aim of these financial statements are to report on the performance of the City inmeeting the approved budgets in both revenue and expenditure terms. An important aspect of The Statements ofComprehensive Income is the exclusion of capital and infrastructure project expenditure. There are two versionsthat are prepared with each presenting information in two distinct forms.

The first Statement of Comprehensive Income is by Nature & Type as prescribed by the Financial ManagementRegulations Schedule 1 Part 2 that ensures compliance with statutory requirements. The report categorisesrevenues and expenses into easy to understand types based on the nature of the individual revenue or expense. Forexample employee costs are made up of not only salaries and wages but also casual labour, labour hire, staffrecruitment, staff training etc.

The second Statement of Comprehensive Income is by Program. Since the withdrawal of AAS 27, AASB 1052.11(b)now governs the disclosure requirements relating to income and expenditure by program (function / activity). Thereport aims to give the reader information on what activity within the community revenue is generated from andwhere money is spent. For example the General Purpose Funding program is where most revenue is generated fromrates, the main source of local government funds. In regards to expenditure the program titled Recreation & Cultureoften has the greatest outlay. This program includes costs associated with operating Libraries, Leisure Centres,Street Lighting, maintaining Parks & Reserves and City owned Buildings.

Both reports calculate variances based on the Current Revised Budget. The actual figures for the year to date arecompared to the year to date current revised budget to present a monetary variance as well as a the variance shownas a percentage of the budget.

The following report on significant variances refers to those variances in the Statement of Comprehensive Income byNature and Type.

2.0 Statements of Comprehensive Income2.0 Statements of Comprehensive Income

2.2

Original Budget

2016/17

Revised Budget

2016/17

YTD CURRENTREVISED BUDGET@ 30 NOVEMBER

2016

YTD ACTUAL@ 30

NOVEMBER 2016

$ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities116,312,404 116,312,404 Rates Revenue 115,417,803 115,078,979 (338,824) - -

1,172,000 1,172,000 Service Charges 1,172,000 1,215,564 43,564 - -35,662,650 35,662,650 Fees & Charges 26,782,495 28,228,561 1,446,066 - -10,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,517,600 5,229,128 (288,473) - -

5,751,290 5,751,290 Interest Earnings 2,832,121 2,781,386 (50,735) - -1,051,160 1,195,160 Other Revenue 578,745 907,316 328,570 F 57%

170,270,564 170,404,564 Sub-Total Ordinary Revenue 152,300,765 153,440,934 1,140,170

Expenses from Ordinary Activities(74,643,550) (74,812,790) Employee Costs (30,789,511) (29,473,223) 1,316,289 - -(33,219,103) (33,363,673) Materials & Contracts (14,152,368) (10,720,629) 3,431,740 F (24%)

(6,570,760) (6,570,760) Utility Charges (2,545,891) (2,151,335) 394,556 F (15%)(37,518,100) (37,518,100) Depreciation on Non-Current Assets (15,632,542) (12,823,112) 2,809,430 F (18%)

(2,141,200) (2,141,200) Interest Expenses (604,162) (459,730) 144,432 F (24%)(668,280) (668,280) Insurance Expenses (1,051,723) (873,438) 178,285 F (17%)

(1,616,720) (1,617,720) Other Expenses (655,013) (549,910) 105,104 F (16%)

(156,377,713) (156,692,523) Sub-Total Ordinary Expenses (65,431,210) (57,051,375) 8,379,835

13,892,851 13,712,041 Ordinary Activities 86,869,555 96,389,559 9,520,005

Add Non-Ordinary Activities12,350,970 12,600,670 Non-Operating Grants, Subsidies & Contributions 7,653,397 3,185,296 (4,468,100) U (58%)22,496,510 22,496,510 Non-Operating Gifted Assets from Developers: Other - - - - -

7,203,730 7,203,730 Developer Contribution Plans: Cash 3,001,554 3,298,116 296,562 F 10%11,117,490 11,117,490 Developer Contribution Plans: In Kind - - - - -(4,083,130) (4,083,130) Land Ceded to the Crown - - - - -

5,566,820 5,566,820 Profit / (Loss) on Disposal of Assets 2,319,508 133,248 (2,186,261) U (94%)- 1,571,000 Profit / (Loss) on Impairment of Investments 1,571,000 1,574,446 3,446 - -

5,000,000 5,000,000 Unrealised Gain from Other Financial Assets: EMRC - - - - -

73,545,241 75,185,131 Net Result 101,415,015 104,580,666 3,165,651- - Other Comprehensive Income - - -

73,545,241 75,185,131 Total Comprehensive Income 101,415,015 104,580,666 3,165,651

Financial Ratios 2014 2015 2016 Current Month

OPERATING SURPLUS RATIO 22.00% 22.00% 23.00%

DEBT SERVICE COVER RATIO 11.17 13.73 8.93

OWN SOURCE REVENUE COVERAGE RATIO 1.05 1.10 1.15

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE CITY OF SWAN

FOR THE PERIOD 1 JULY 2016 to 30 NOVEMBER 2016

The Own Source Revenue Coverage Ratio measures the local government's ability to cover operating expenses from own source revenue. The higher the ratio, the more self reliant the City will be. This allows greater flexibility as less external funds are required for operational purposes. A ratio above 0.90 is considered low risk and less than 0.60 high risk.

The Debt Service Cover Ratio measures the ability to service debt. Also known as 'debt coverage ratio', this is the ratio of cash available for debt servicing to interest, principal and lease payments from the operations of the City. A ratio below 2.00 should be monitored carefully. A ratio above 5.00 is considered low risk. The higher the ratio, the better the City's financial capacity to meet the debt servicing commitments.

65.04%

47.14

2.60

The Operating Surplus Ratio highlights the extent of the operating surplus (deficit) relative to the revenues of the Council. This is an indicator of the extent to which revenue raised cover operational expenses and is available for capital funding purposes. The higher the ratio the more financial capacity to deal with asset renewal before reliance on external sources of revenue. A ratio above 15% is considered low risk - an indication that own source income is available to fund capital expenditure initiatives over and above depreciation. A ratio below 0% is considered high risk. The year to date ratios will vary considerably from year end results.

2.3

Original Budget

2016/17

Revised Budget

2016/17

YTD CURRENTREVISED BUDGET@ 30 NOVEMBER

2016

YTD ACTUAL@ 30

NOVEMBER 2016 $ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities127,536,494 127,536,494 General Purpose Funding 120,987,807 120,631,662 (356,145) - -

166,830 166,830 Governance 70,023 398,804 328,781 F 470%2,333,190 2,307,190 Law Order & Public Safety 1,761,159 1,820,945 59,786 - -

271,000 271,000 Health 112,917 259,228 146,312 F 130%4,526,420 4,526,420 Education & Welfare 2,459,288 2,077,113 (382,175) U (16%)

60,000 60,000 Housing 25,000 27,507 2,507 - -21,973,000 21,976,700 Community Amenities 21,059,117 22,294,712 1,235,595 - -

7,177,270 7,177,270 Recreation & Culture 2,828,646 2,837,257 8,611 - -1,663,940 1,663,940 Transport 939,500 1,080,502 141,002 F 15%1,530,000 1,686,300 Economic Services 793,800 820,975 27,175 - -3,032,420 3,032,420 Other Property & Services 1,263,509 1,192,229 (71,279) - -

170,270,564 170,404,564 Sub-Total Revenue 152,300,765 153,440,934 1,140,170

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,942,622) (2,941,362) General Purpose Funding (1,120,577) (1,006,104) 114,474 F (10%)(12,721,402) (12,634,501) Governance (5,148,210) (4,359,909) 788,301 F (15%)

(6,073,486) (6,028,616) Law Order & Public Safety (2,483,669) (2,523,330) (39,661) - -(1,827,893) (1,828,563) Health (762,294) (711,559) 50,735 - -(9,357,259) (9,342,529) Education & Welfare (3,978,608) (3,510,178) 468,430 F (12%)

(99,167) (99,167) Housing (41,320) (35,094) 6,225 - -(25,107,287) (25,228,957) Community Amenities (10,539,443) (10,006,164) 533,280 - -(51,024,352) (51,094,352) Recreation & Culture (21,683,342) (19,863,170) 1,820,173 - -(36,547,416) (36,619,256) Transport (15,314,748) (10,675,823) 4,638,925 F (30%)

(6,052,841) (6,312,281) Economic Services (2,781,412) (2,148,247) 633,165 F (23%)(2,482,786) (2,421,736) Other Property & Services (973,424) (1,752,068) (778,645) U 80%

(154,236,513) (154,551,323) Sub-Total Non-Borrowing Expense (64,827,048) (56,591,646) 8,235,403

Borrowing Costs Expense(559,810) (559,810) Governance (167,393) (123,628) 43,764 F (26%)(702,950) (702,950) Recreation & Culture (200,726) (154,128) 46,598 F (23%)(430,100) (430,100) Transport (113,524) (79,330) 34,194 F (30%)(448,340) (448,340) Other Property & Services (122,519) (102,643) 19,876 F (16%)

(2,141,200) (2,141,200) Sub-Total Borrowing Costs (604,162) (459,730) 144,432

13,892,851 13,712,041 Net Operating Result 86,869,555 96,389,559 9,520,004

Non-Operating Grants, Subsidies & Contributions18,321,220 18,321,220 Governance 3,001,554 3,298,116 296,562 F 10%

200,000 200,000 Law Order & Public Safety 83,333 15,000 (68,333) U (82%)332,210 322,210 Education & Welfare 128,421 14,391 (114,030) U (89%)

13,606,060 13,760,440 Recreation & Culture 1,656,905 804,233 (852,672) U (51%)20,709,210 20,814,530 Transport 5,784,738 2,351,672 (3,433,065) U (59%)53,168,700 53,418,400 10,654,951 6,483,412 (4,171,539)

Land Ceded to the Crown(1,918,710) (1,918,710) Recreation & Culture - - - - -(2,164,420) (2,164,420) Transport - - - - -(4,083,130) (4,083,130) - - -

Profit/(Loss) on Disposal of Assets5,059,470 5,059,470 Recreation & Culture 2,108,113 (110) (2,108,222) U (100%)

507,350 507,350 Transport 211,396 133,358 (78,038) U (37%)5,566,820 5,566,820 2,319,508 133,248 (2,186,261)

Profit/(Loss) on Impairment of Investments- 1,571,000 General Purpose Funding 1,571,000 1,574,446 3,446 - -

Unrealised Gain from Other Financial Assets: EMRC5,000,000 5,000,000 General Purpose Funding - - -

73,545,241 75,185,131 Net Result 101,415,015 104,580,666 3,165,651Other Comprehensive Income

73,545,241 75,185,131 Total Comprehensive Income 101,415,015 104,580,666 3,165,651


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM CITY OF SWAN

3.1

Description

2. Statement of Change in Equity

Financial Ratios 2014 2015 2016 Current MonthCURRENT RATIO 1.52 1.67 1.34 4.52

QUICK RATIO 1.52 1.67 1.34 4.51

UNTIED CASH TO TOTAL CREDITORS 3.83 5.50 2.72 12.53

1. Statement of Financial Position

AASB 101 requires all Councils to prepare a Statement of Financial Position, which discloses the assets, liabilities and equity ofthe Council as at the reporting date. The ratepayer equity in the Council can be calculated by deducting total liabilities from totalassets.

The purpose of the Statement of Financial Position is to provide a "snap - shot" of the overall financial position of the Council asat a particular date. An entity shall present current and non-current assets, and current and non-current liabilities, as separateclassifications on the face of its balance sheet and on the basis of liquidity. Subject to special requirements for revaluation ofvarious classes of assets, accepted accounting practice includes well defined accounting principles. This convention dictates thatan asset represents the value of an investment acquired to provide future economic benefit to an entity. The future economicbenefits may be in the form of cash or cash equivalents or in the case of not-for-profit (including public sector) entities, theeconomic benefits are derived from meeting the entities objectives of providing goods and services.

Councils are required by AASB 101 to prepare a Statement of Changes in Equity and include it in the Financial Statements. TheStatement of Changes in Equity reconciles the opening and closing balances of each class of the local government's equity overthe reporting period. It provides a summary of causes of the changes in equity and identifies specifically the changes incomposition of the local government's equity.

A Quick Ratio measures the short - term debt paying ability and the liquid position of the City of the Swan and the ability to pay its immediate debts with restricted assets and inventories removed from the calculation. The ratio should be greater than 1.00 (100%).

This ratio assesses the City's ability to meet immediate commitments from readily available cash. Trade creditors include orders for goods and services that have been received but not paid and any amount owing for GST. The higher the ratio the better placed Council is to pay its Creditors. This ratio is always at its lowest point at the end of the financial year and the beginning of the new financial year as much of the cash reserves of the City has been expended by this time and collection of rates revenue is yet to accelerate. This ratio has improved over the last couple of years with an improvement in net funds available at the end of the year.

A Current Ratio shows short - term paying ability with restricted assets removed from the current assets. It relates to the immediate financial sustainability of Council. A ratio greater than 1.00 (100%) indicates Council has more current assets than current liabilities. If less than 1.00 (100%), current liabilities are greater than current assets and there may be a short term funding issue.

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @30 NOVEMBER 2016

ACTUAL @30 JUNE 2016

Current AssetsCash and cash equivalents 179,754,863 133,247,518Trade and other receivables 55,077,847 9,673,594Other Assets 604,830 776,014Inventories 271,268 169,839

Total: Current Assets 235,708,806 143,866,966

Non Current AssetsTrade and other receivables 2,591,068 2,368,749Property, plant and equipment 1,326,433,172 1,314,310,707Other Financial Assets 60,365,712 60,365,712

Total: Non Current Assets 1,389,389,951 1,377,045,169

Total Assets 1,625,098,758 1,520,912,135

Current LiabilitiesShort term borrowings 3,544,991 5,412,027Trade and other payables 19,200,653 18,472,821Income in advance 771,545 -Provisions 12,888,785 12,847,797

Total: Current Liabilities 36,405,974 36,732,645

Non Current LiabilitiesLong term borrowings 36,673,829 36,673,830Trade and other payables 3,044,434 3,741,051Provisions 1,932,650 1,303,402

Total: Non Current Liabilities 41,650,913 41,718,283

Total Liabilities 78,056,887 78,450,928

NET ASSETS 1,547,041,873 1,442,461,207

Equity AccountsAccumulated Surplus 984,363,476 881,986,083Asset Revaluation Reserves 463,276,542 463,276,542Cash Backed Reserves 99,401,856 97,198,580

TOTAL EQUITY 1,547,041,873 1,442,461,207

CITY OF SWAN STATEMENT OF FINANCIAL POSITION

AS AT 30 NOVEMBER 2016

3.3

RETAINEDSURPLUS

ASSET REVALUATION RESERVES

RESERVES CASH / INVESTMENT BACKED

TOTALEQUITY

Balance as at 1 JULY 2014 714,853,460 390,262,767 67,796,018 1,172,912,245

Prior Period Adjustments 1,552,169 (16,321,571) - (14,769,402)

Restated Balance as at 1 JULY 2014 716,405,629 373,941,196 67,796,018 1,158,142,843

Net Result 101,556,002 - - 101,556,002

Total Other Comprehensive Income - 74,121,548 - 74,121,548

Transfer from/(to) Reserves (16,124,378) - 16,124,378 -

Balance as at 30 JUNE 2015 801,837,253 448,062,744 83,920,396 1,333,820,395

Net Result 106,487,074 - - 106,487,074

Transfer from Retained Surplus to Revaluation Surplus (13,060,059) 13,060,059 - -

Total Other Comprehensive Income - 2,153,738 - 2,153,738


Balance as at 30 JUNE 2016 881,986,083 463,276,542 97,198,580 1,442,461,207

Net Result 104,580,666 - - 104,580,666

Total Other Comprehensive Income - - - -


Balance as at 30 NOVEMBER 2016 984,363,476 463,276,542 99,401,856 1,547,041,873

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS30-Nov-16 30-Jun-16

Cash / Investment Backed Reserves

Aged Services Asset Replacement 139,751 267,804

City Asset Replacement 8,436,768 6,269,851

Ellenbrook Community Facilities 202,165 559,574

Vale Community 1,428,558 1,442,580

General Insurance 500,000 500,000

Gravel Pit Rehabilitation 365,558 313,637

Hazelmere/Guildford Drainage 1,524,628 1,368,745

Midland District Drainage Development 5,385,774 5,538,128

Plant & Equipment Reserve 1,954,119 1,907,521

Waste Management 6,360,149 7,275,188

Employee Entitlements - LSL 6,898,054 5,958,432

Hazelmere Industrial Area Infrastructure - Stage 2 6,047,896 6,901,504

Ellenbrook Bridge 2,134,480 2,166,748

Strategic Development 3,107,385 1,733,866

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 15,140,258 14,841,917

- Caversham 10,674,889 10,214,013

- Dayton (West Swan East) 24,253,978 23,766,614

Other Restricted Assets

- Drainage 66,084 66,084

- Footpath 242,258 227,958

- Malaga Parking 171,083 162,500

- Midland Parking 35,000 35,000

- Ellenbrook Parking 842,517 842,517

- Roadwork 2,718,923 2,753,528 - Unspent Specific Grants - 1,388,290

- Public Art 771,580 696,580

Sub total Cash / Investment Backed Reserves 99,401,855 97,198,580

Add: other restricted cash / investment assets (i.e Bonds) 3,044,434 5,325,651Total of restricted cash / investment assets 102,446,289 102,524,229Add: Unrestricted cash / investment assets (i.e. MUNI funds) 77,308,574 30,723,289TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 179,754,863 133,247,518

Consisting of: Cash and Cash Equivalents 179,754,863 133,247,518

179,754,863 133,247,518


CITY OF SWAN STATEMENT OF CHANGES IN EQUITY

4.1

Comments

Ytd expenditure for Midland Youth Services Hub is $2.3m against $2.9m annual budget, with $221k of this beingrecorded in November. Structural steel, roofing and brick works are almost complete and practical completion for the project is expected in the second quarter of 2017.

Gnangara Road expended $886k during the month, resulting in total spend of $5.3m or 102% against $5.1m annualbudget. A budget adjustment is pending for the 2% marginal above budget spend. Construction of Stage 2 (eastbound carriageway, between Alexander Drive and Water Corporation Pump Station) has been mostly completed with the last 300m to be asphalted in early December. Site clean-up, installation of signage and line marking is anticipated to be completed in January 2017.

Hazelmere Industrial Area Infrastructure Road has realised 52% or $4.9m of its $9.5m annual budget; $749k wasexpended in November. Construction is continuing between Stirling Crescent and Lakes Road. The City is liaising with Main Roads Western Australia regarding the purchase of land for the upgrade of Abernethy/Great Eastern Highway Intersection.

Bullsbrook Waste Transfer Station spent $352k during the month, resulting in total spend of $920k against annualbudget of $1.1m. Site works are proceeding; sand spreading is almost complete and drainage works are in their early stages. Completion of the project is scheduled for March 2017.

North Swan Park Pavilion has recognised 86% or $910k of its $1.1m budget. Of this $304k was recorded in November.Notable works still to be completed include the installation of appliances and works on the baseball pitching and catching practise area. It is anticipated that the facility will be in use by the community early in the new year.

4.0 Capital

0

20,000

40,000

60,000

80,000

100,000

120,000

July Aug Sep Oct Nov Dec Jan Feb March April May June

mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 16/17 Budget 16/17

Prior Year Actual Prior Year Budget

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Buildings Drainage Footpaths Parks Roads P&E, Other

mill

ions

$

YTD Capital Works expenditure Actual & CommittedBudget

Current Budget YTD Expense Current Budget

JobNumber

JobName

FullYearExpense Actual Commited Total % of

BudgetFullYearRevenue

YTDRevenue

% ofBudget

BCW04134 Administration Building 722,000 5,184 134,910 140,094 19

BCW05104 Altone Park Library 69,000

BCW05106 Community Facilities 50,000

BCW05110 Midland Town Hall Build Imp 590,000 1,472 15,060 16,532 3

BCW05114 Minor Capital Building Projec 60,000 34,279 2,200 36,479 61

BCW05129 Guildford Visitor Centre 140,000

BCW05131 Midland Lotteries 120,000

BCW05137 Altone Leisure Centre 577,000 31,164 26,800 57,964 10

BCW06110 Ballajura Aquatic Centre 203,000 24,133 5,637 29,770 15

BCW06121 Toilet Renewals 18,000 2,608 5,982 8,590 48

BCW07103 West Swan Home Supp 40,000

BCW07108 Swan Park Recreation Centre 804,600 15,191 15,191 2

BCW07116 Airconditioner Renewal Progra 54,800

BCW07121 Percy Cullen Pavilion 220,000 200,000

BCW07122 South Ballajura Com Centre 35,000

BCW07124 Midland Sports Complex 109,120 10,723 10,723 10

BCW08109 Bullsbrook Waste Transfer Sta 1,060,640 458,351 461,955 920,306 87 200,000

BCW08115 Ballajura Library 5,200 5,198 5,198 100

BCW08116 Midland Junction Arts Centre 15,000 12,297 12,297 82

BCW08120 Midland Youth Services Hub 2,907,260 743,777 1,587,746 2,331,523 80 1,725,000

BCW09102 Bus Shelters 160,000 1,346 101,867 103,212 65 37,500

BCW09104 Bin Compounds 22,420 12,918 12,918 58

BCW09105 Energy Conservation Measures 3,150 3,150

BCW09106 Switchboards Renewal 14,000 3,672 3,672 26

BCW09107 Electrical Plant & Equipment 25,000

BCW09108 Heritage Precincts 185,060 19,317 38,845 58,163 31

BCW10101 Asbestos Management Program 175,000 1,710 36,278 37,988 22

BCW10102 Integrated Systems Program 401,000 88,282 88,282 22

BCW11104 Ellenbrook DOS Sthn 394,000 31,206 7,621 38,828 10

BCW11106 Ellenbrook Leisure Centre 566,000 72,377 7,073 79,450 14

BCW11107 Ellenbrook Resource Centre 20,000 11,578 11,578 58

BCW11109 Building Disposal 24,000 2,000 2,000 8

BCW11110 Swan View Oval Pavilion 20,000 9,360 9,360 47

BCW11112 Malvern Springs Community Cen 287,500 287,500 287,500 100

BCW12102 Pickett Park Community Facili 7,034,300 1,750,265 1,750,265 25 736,250

BCW12103 Woodlake Community Centre 36,000 5,158 5,158 14

BCW12104 15 Keane Street Upgrade 298,000 243,231 47,369 290,599 98

BCW13101 Ballajura Place Office 298,000

BCW13102 Caversham Community Centre 3,916,000 669,724 1,837,561 2,507,285 64

BCW13104 Midland Oval 871,420 180,260 123,729 303,989 35

BCW13107 Old Mechanical Workshop 30,000

BCW14101 Altone Place Office 124,000

BCW14103 Brabham Community Centre 555,730 61,125 61,125 11

BCW14104 Dayton Community Centre 3,132,700 262,805 2,433,487 2,696,292 86

BCW14106 North Swan Park Pavilion 1,054,000 893,326 16,844 910,171 86

BCW14107 Rosher Oval Hall & Pavilion 1,248,000 1,050,443 138,417 1,188,859 95

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 30 NOVEMBER 2016

5/12/2016 3:28:54 PM


JobNumber

JobName



YTDRevenue

% ofBudget

BCW14109 Operations Centre 478,000 22,408 343,375 365,783 77

BCW15001 Hazelmere Hall 40,000 11,719 14,970 26,689 67

BCW15002 Koongamia Pavilion 139,500

BCW15003 Lowery Park Pavilion 227,000 230 230

BCW15004 Gidgegannup Fire Station 309,380 4,140 13,620 17,760 6 309,380

BCW15005 District Park Active- Buildin 285,000 42,167 236,012 278,179 98

BCW15006 Ewart Street 10,000 5,761 4,400 10,161 102

BCW16101 Stafford Court - Training Roo 180,000 8,209 130,981 139,190 77

BCW16102 Guildford Gaol 371,940 121,451 160,106 281,557 76

BCW16103 Jane Brook Community Centre 20,000 874 7,480 8,354 42

BCW16104 Malaga Transfer Station 20,000

BCW16105 Temporary Men's Shed 100,000 29,918 11,956 41,874 42

BCW Building Capital Works 30,873,570 7,142,326 8,061,960 15,204,286 49 3,208,130 0 0

DRN04213 Midland Drainage 490,000 50,500 109,732 160,231 33

DRN05203 Hooley/Mathoura Drainage 677,000

DRN06206 John St Midland 8,550 8,545 8,545 100

DRN07209 Morrison Road/Poynton Ave 286,000

DRN08203 Hazelmere/Guildford Drainage 1,020,000 142,095 428,666 570,761 56

DRN08205 Morrison Road 426,400

DRN10201 George St Midland 40,000 39,770 39,770 99

DRN12205 Hamersley Street 148,750 1,909 1,909 1

DRN13203 Ewart Street Midland 93,500 56,335 90,369 146,704 157

DRN13209 Other Drainage Upgrades 220,000 810 4,853 5,663 3

DRN14203 Elvire Street 325,000 65,738 1,035 66,773 21

DRN15001 Margaret Street 272,040 264,415 13,463 277,878 102

DRN15002 Gartrell Street 193,050 182,688 8,350 191,039 99

DRN15006 Ford Street 243,100 7,315 (1) 7,314 3

DRN15007 Spring Street 5,820 5,815 5,815 100

DRN15009 Fawell Street 56,500

DRN15010 Taylor Crescent 1,580 1,573 1,573 100

DRN15011 Cole Street 6,320 6,317 6,317 100

DRN15012 Bushby Street 405,000 22,243 10,820 33,063 8

DRN15014 Bellevue Heritage Railway 100,000 685 685 1

DRN16201 Guildfd Foreshore Restoration 175,000 1,260 1,260 1

DRN16202 Midland Foreshore Restoratio 310,000 3,960 3,960 1

DRN16203 Byers Road 443,300 420 420

DRN16204 Devon Road 260,000 141,496 12,031 153,526 59

DRN16206 Holmesdale Road 169,000 18,967 360 19,327 11

DRN16207 Plymouth Street 78,000 116,326 1,632 117,958 151

DRN16208 William Street 128,700

DRN Drainage 6,582,610 1,133,963 686,529 1,820,492 28 0 0 0

FTP06502 Footpaths New 115,000

FTP06505 Footpath Replacements 250,000 36,006 164,603 200,609 80

FTP09501 Swan Cycle Planning Project 680,000 384,115 221,571 605,686 89 230,000


5/12/2016 3:28:54 PM


JobNumber

JobName



YTDRevenue

% ofBudget

FTP10101 Universal Access - Footpath 30,000

FTP Footpaths 1,075,000 420,121 386,174 806,295 75 230,000 0 0

GRP04100 Gravel Pit 232 232 47,462

GRP Gravel Pit 0 232 0 232 0 47,462

PEQ08104 CCTV - Safer Suburbs 200,000 4,541 4,541 2 200,000 15,000 8

PEQ10104 Website Development - SVC 82,210 82,215 82,215 100

PEQ11102 Midland Parking Technology 265,970 670 59,000 59,670 22

PEQ13102 COS Website Maintenance 73,870

PEQ14101 Asset Management Software 200,000

PEQ14102 Discovery Layer 33,800

PEQ14103 User Generated Content System 30,000

PEQ14104 Herne Hill - Telecomunication 331,140 529 33,300 33,829 10

PEQ15000 Fire Fighting Assets 40,000 6,716 408 7,124 18

PEQ15003 CSR - Technology One 799,000 605,693 237,375 843,068 106

PEQ15004 Movie Trailer 326 1,723 2,049

PEQ16101 DCP Software 100,000

PEQ16102 Leisure System Replacement 396,000

PEQ16103 Midland Town Hall Sound Syste 100,000

PEQ16104 Radio Frequency ID Equipment 129,500

PEQ16105 Sea Containers 200,000 103,800 103,800 52

PEQ16106 Electric Vehicle Charge Stati 30,000

PEQ16107 Digital Asset Management 30,340

PEQ Plant & Equipment 3,041,830 722,276 414,021 1,136,296 37 200,000 15,000 8

PRK04324 Residential Street Trees 36,000 41,227 41,227 115

PRK04326 Minor Park Furniture 20,000 479 479 2

PRK04328 Rural Street Trees 20,000

PRK05304 Parks & Streetscapes Minor 200,000 44,469 12,337 56,806 28

PRK05307 Swan Regional Riverside Park 241,858

PRK05309 Tourism Signage 52,000 7,396 1,676 9,072 17

PRK05311 Emu Lake Restoration 344,000 168,604 19,757 188,360 55

PRK05317 Playgrounds - Ellenbrook 40,250

PRK05336 North Swan Pk Bowling Club 190,000 2,818 2,818 1

PRK06303 Jack Mann Oval 50,000 45,901 45,901 92

PRK06316 Coolamon Oval 35,000 11,102 11,102 32

PRK06318 Playgrounds - Aveley 692,300

PRK07309 Kings Meadow 100,000

PRK08302 Bellevue Landscape Upgrade 289,000 7,200 7,200 2

PRK08307 Bushland Fencing 205,500 5,876 5,876 3

PRK08318 Public Art 150,000 1,426 1,426 1

PRK09302 Chequers Club Bore/Irrigation 850,000 2,949 171,804 174,753 21

PRK09305 City Gateways Project 300,000 3,723 3,723 1

PRK10102 Playspace Replacemet Pgm 840,000 13,166 9,795 22,961 3


5/12/2016 3:28:54 PM


JobNumber

JobName



YTDRevenue

% ofBudget

PRK11101 Regional Open Space - Whitema 128,000 900 900 1

PRK11102 Reticulation/Hydrozoning 513,000 57,362 101,717 159,079 31

PRK11106 Ellenbrook DOS South 500,000 371,886 40,096 411,982 82 375,000 375,000 100

PRK12306 City Wide Fencing Water Bodie 10,000 3,300 3,300 33

PRK12308 Lanius Park Drain 100,000

PRK13301 Boat Ramp, Fishmarket Rsv Gfr 400,740 267,475 2,156 269,631 67 85,500 90,000 105

PRK13309 Sports Oval Lighting 225,000 44,847 18,369 63,215 28

PRK13311 John Stone Park 30,000

PRK14301 Paradise Quays 1,635,560 8,505 8,505 1

PRK14304 Bennett Springs Park 500,000 45,887 12,379 58,266 12 91,810

PRK14305 Brabham Neighbourhood Park 1,000,000 16,650 16,650 2

PRK14307 District Park Active 502,470 85,655 68,385 154,040 31

PRK14308 Foreshore Restoration 441,000 13,361 65,601 78,961 18 22,375

PRK14310 Midland Oval Master Plan 4,982 1,510 6,492

PRK14311 Parks Electrical Infrastructu 233,500 41,968 37,255 79,223 34

PRK14313 Gidgegannup Showgrounds 47,000 2,890 2,890 6

PRK14315 Annies Landing Playgrounds 46,000

PRK15000 Art Activation Street Banners 50,000 240 240

PRK15001 Coolamon Netball Courts 150,000 22,372 42,169 64,541 43

PRK15006 Dayton Local Park - Passive 100,000 1,142 1,142 1

PRK15007 Caversham Oval - DCP 1,300,000 62,457 100 62,557 5

PRK16301 Altone Parks BBQ & Water 40,000

PRK16302 Dayton Neighbourhood Park 584,950

PRK16303 Aveley Outdoor Fitness Equip. 172,500

PRK16304 Brigadoon RDA Arena Improvemt 100,000 513 73,002 73,515 74

PRK16305 Koongamia Oval Bore Replaceme 20,000 15,340 15,340 77

PRK16306 Dorrigo Park 20,000 7,573 282 7,855 39

PRK16307 Bremer Park 75,000 1,084 39,589 40,673 54

PRK Parks 13,338,770 1,391,751 758,948 2,150,700 16 552,310 729,233 132

RDN04403 The Promenade 500,000

RDN04420 Millhouse Road 465,000 2,385 57 2,441 1

RDN04421 Cranleigh Street 35,000 1,138 1,138 3

RDN04426 Chittering Road 125,000 916 29,357 30,273 24 70,000 28,000 40

RDN04432 Albert Road 40,000

RDN04446 West Swan Rd/ Millhouse Rd 400,000 34,154 8,000 42,154 11

RDN05402 Street Lighting Upgrades 516,250 17,164 14,342 31,505 6

RDN05405 Traffic Safety Minor Projects 55,000 7,945 7,450 15,395 28

RDN05408 Morrison Road 232,260

RDN05423 Local Road Prog - City Wide 3,869,930 1,015,246 26

RDN05457 O'Brien Road 70,000

RDN05459 Clenton Road 70,000

RDN05487 Kingsley Drive 75,000

RDN05497 Muriel Street 485,000 11,492 230,251 241,742 50

RDN06404 Hepburn Avenue 3,913,820 50,895 78,916 129,811 3 1,043,680

RDN06409 Johnson Street 180,000 12,723 92,136 104,858 58

RDN06420 Bridge Works 1,195,330 311,099 30,754 341,853 29 40,000


5/12/2016 3:28:54 PM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN06421 Investigation,Design Projects 150,000 109,763 11,341 121,105 81

RDN06437 West Parade 49,000

RDN06450 Lloyd Street 85,000

RDN07402 Local Road Program-Testing 75,000

RDN07403 Contributions For Works To 200,000 8,995 21,812 30,808 15

RDN07425 Beach Road/ Alexander Drive 119,926

RDN07426 Marangaroo Dr/ Illawarra Cres 5,743 5,743 81,932

RDN07451 Warbrook Road 140,000 4,045 4,606 8,651 6 140,000 56,000 40

RDN07452 Lord Street 3,267,275 99,773 (1) 99,773 3

RDN07454 Malaga Industrial Carparking 255,000 2,917 4,670 7,587 3

RDN08402 Carpark Kingfisher Park 175,000

RDN08427 Pinaster Parade 300,000 79,805 241,209 321,014 107

RDN08436 Jenkins Road 160,000 744 744

RDN08441 Campersic Road 30,936

RDN09403 Bellefin Drive 120,000

RDN09431 Oakover Road 30,000 372 372 1

RDN09440 Bishop Road 105,320 92,076 7,936 100,011 95 105,320 148,576 141

RDN10253 Henley Street 150,000

RDN11201 Hazelmere Ind Area Infrast RD 9,468,010 4,171,320 730,882 4,902,202 52

RDN11401 Benara Road 1,205,100 76,606 925,388 1,001,993 83 750,070 300,027 40

RDN11426 Meadow Street 400,000

RDN12403 Henley Brook Avenue 75,000 19,380 19,380 26

RDN13204 Gnangara Road 5,185,000 3,852,773 1,425,231 5,278,004 102 585,660

RDN13206 Joseph Road 150,000 11,059 91,575 102,634 68

RDN13210 Neaves Road 111,000 62 27,856 27,918 25 111,000 44,400 40

RDN14201 Ellenbrook Bridge 1,640,000 12,810 40,604 53,414 3

RDN15003 Clipper Drive 160,000

RDN15006 GNH/Bishop Road 1,400,000 1,062,645 248,888 1,311,533 94

RDN15008 Marshall Road/Lord Street 50,000

RDN15011 Mountjoy Street 15,000

RDN15016 Tyne Link 100,000 91,617 13,695 105,312 105

RDN15017 Victoria Road 460,000 1,474 1,474

RDN15020 Centuria Hotel Car Park 112,000 102,331 102,331 91

RDN16201 Helena River Footbridge 20,000 328 328 2

RDN16202 Sloop Rise 26,000 20,157 3,482 23,639 91

RDN16203 Colorino Avenue 1,000 1,694 1,694 169

RDN16204 Guildford Railway Station 250,000 3,577 3,577 1 250,000

RDN16205 Hardwick Road 40,000 1,374 1,374 3

RDN16206 Hyem Road 100,000 1,121 17,529 18,650 19

RDN16207 Inlet Trail 55,000 53,550 (1) 53,549 97

RDN16208 Lefroy Avenue 60,000

RDN16209 Millhouse Rd/Chateau Pl RAB 918,540 75,035 74,090 149,124 16 612,360 244,943 40

RDN16210 Montreal Road 215,000 1,507 1,507 1

RDN16211 Moore Road 95,000


5/12/2016 3:28:54 PM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN16212 Riverside Drive 110,000 2,022 135,444 137,466 125

RDN16213 Stirling Cr/Hazelmere Circus 50,000

RDN16214 Weddall Road 285,000 7,569 199,766 207,335 73

RDN16215 New Lord Street 50,000

RDN16216 Benara Road, Intersection 832,380 12,161 8,823 20,984 3

RDN16217 Altone Park Car Park 25,000 19,682 19,683 79

RDN Roads 37,283,285 10,435,109 4,746,975 15,182,083 41 7,538,020 2,109,986 28

CAPITAL JOBS TOTAL 92,195,065 21,245,776 15,054,607 36,300,383 39 11,728,460 2,901,681 25

Current Budget

YTD Expense Current Budget

FullYearExpense

Actual Commited Total % ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 8,035,210 193,451 193,451 2

1608 Purchase of Assets Buildings

1613 Purchase of Asset Office F & 587,120 70,064 29,454 99,518 17

1618 Purchase of Assets P & E 8,925,870 3,103,690 1,921,825 5,025,515 56

1623 Purchase of Assets Computer 924,160 307,885 91,270 399,155 43

1628 Purchase of Assets Vehicle 1,964,750 560,659 1,272,617 1,833,276 93

CAPITAL ASSETS TOTAL 20,437,110 4,235,750 3,315,166 7,550,915 37 0 0 0

GRAND TOTAL 112,632,175 25,481,526 18,369,773 43,851,298 39 11,728,460 2,901,681 25


5/12/2016 3:28:54 PM

5.1

4.0 DInvestments

ADI Lending Status Value Invested $Fossil Fuel lending ADI's

15,554,861

39,000,000

8,000,000

62,554,861

Non Fossil Fuel lending ADI's

23,000,000

30,000,000

64,200,000

117,200,000

Total Cash and cash equivalents 179,754,861

0

40

80

120

160

200


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2014 2015 2016 20170

40,000

80,000

120,000

160,000

July Aug Sep Oct Nov Dec Jan Feb MarchApril May June

Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash

5.0 Cash and Investments

13%

9%

16%

22%

36%

4%

Investment Portfolio Exposure

Bendigo and Adelaide Bank - BENCommonwealth Bank of Australia - CBA-BWAMembers Equity Bank - MEBNational Australia Bank - NABSuncorp Bank - SUNWestpac Group - WBC

(A-2, BBB+) MEB

(A-1, A+) SUN

(A-2, A-) BEN

(A-1+, AA-) NAB

(A-1+, AA-) CBA-BWA

(A-1+, AA-) WBC

0% 10% 20% 30% 40% 50%

Individual Institution Exposures vs. Policy Limits

Limits Funds

0%

20%

40%

60%

80%

100%

0

50

100

150

200

Historical Portfolio Exposure to Non Fossil Fuel Lending ADIs

Sum(Total) Sum(Non Fossil Fuel Lending ADI (%))

Comm Bank of Australia

National Australia Bank

Westpac Group

Bendigo and Adelaide Bank

Members of Equity Bank

Suncorp Bank

Mill

ions

$

City of Swan Economic and Investment Portfolio Commentary

November 2016 Global issues: The US election was the focal point of the financial markets in November and the results look to hold the

world’s attention for some time. Speculation over the fallout of some of Donald Trump’s election promises have the markets pricing in inflationary expectations.

Further inflationary pressures came at the end of the month with oil prices jumping higher after OPEC members reached an agreement to cut production, signalling an end to the 2 year oil glut. If non-OPEC producers such as Russia also cut production, as is expected, experts predict oil to exceed US$60/barrel after being below US$45/barrel as recently as early November.

The US Federal Reserve is widely expected to raise the nation’s key cash rate by 25 basis points at its December meeting and then follow with as many as three more rate rises in 2017. Meanwhile, the US dollar continues to strengthen with the AUD/USD dropping from 76.1c to 73.9c during the month.

Domestic issues: In Australia, the most recent employment data continues to show weakness with only 9800 jobs created

in October versus expectations of +20k. Construction, retail sales and net exports have all been weaker than expected leaving experts to predict

upcoming quarterly GDP data to be disappointing.

Interest rates The RBA’s official cash rate remains at 1.50%. Despite weak domestic data, the Australian money markets

are pricing in global inflationary expectations and are now leaning toward flat rates through 2017 and a rate increase by mid-2018.

Term deposit rates are beginning to increase inline with market rates, particularly in the 6-9 month areas and also beyond 12 months. Three month TDs from Australian majors closed November in the 2.50%-2.70% area and the best indicative 12 month rate from a four major was at 2.75%.

Investment Portfolio Commentary The City’s investment portfolio posted a return in November of 2.61%pa versus the bank bill index benchmark return of 1.77%pa. 65% of the portfolio was invested in non-fossil fuel lending ADIs. For the financial year to date, the investment portfolio returned 2.65%pa, exceeding the bank bill index benchmark’s 1.86%pa by 0.78%pa. Investments with realised losses include:

Disclaimer: The statements and opinions contained in this report are based on currently prevailing conditions in financial markets and are so contained in good faith and in the belief that such statements and opinion are not false or misleading. In preparing this report, Prudential Investment Services Corp has relied upon information which it believes to be reliable and accurate. Prudential Investment Services Corp believes that this report and the opinions expressed in this report are accurate, but no warranty of accuracy or reliability is given. Prudential Investment Services Corp does not warrant that its investigation has revealed all of the matters which a more extensive examination might disclose. This report may not be reproduced, transmitted, or made available either in part or in whole to any third party without the prior written consent of Prudential Investment Services Corp. AFS Licence No. 468145.

6.1

5.0 Debtors

i) Rate Debtors ii) Sundry Debtors

i) Rate Debtors

Notes

TABLE 6.1 Rates Debtor Breakdown by Type

Type of DebtorTotal Levied $('000)Current & Arrears

Collected YTD $('000)Outstanding $('000)Current & Arrears

Total Outstanding %

General Rates 116,590 72,846 43,744 38%Sanitation Charges 22,377 19,692 2,685 12%Drainage Charges 2,647 2,503 144 5%Security Charges 1,267 1,123 144 11%Other 39 33 6 15%

142,920$ 96,197$ 46,723$ 33%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

As at 30 November 2016

Each year Rates are levied in July. When this occurs the City recognises the Rates owed as an asset on the balance sheet. Ratenotices are printed and distributed to the public. As these are paid the Rates Debtor position reduces over the course of the year.Graph 6.2 below shows the progress in collecting these funds over the financial year including a comparison to prior yearcollection.

The City's Debtors can be divided into two types:

0

25

50

75

100

125

150


$ M

illio

ns

2015

2016

2017

A high number of residential rates are paid in August as ratepayers take advantage of the early bird payment prize draw. In 2016/17 a high number of payments were made in both August and September as the first instalment was due on the 2nd of Septmber.

Current PositionRate Debtors in Arrears

outstanding $6.6m

Current Debtors outstanding$40.1m

Total Debtors $46.7m

6.0 Debtors

The second, third & fourth rate instalments are due in Oct, Jan &

Mar respectively.

6.2

ii) Sundry Debtors

Notes

Table 6.3 shows a summary of the City's top 10 debtors 30 Days plus by dollar value divided by periods. Table 6.4 shows debt recovery comments for the top 10 debtors over 30 days. Graph 6.5 shows sundry debtors outstanding as a percentage based on payment period.

TABLE 6.3 Total Debtors including Top Ten 90 Days plus as at 30 November 2016

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - - - 127,700 127,700 16.12% 8.75%2 - - - 70,000 70,000 8.84% 4.80%3 - - - 61,282 61,282 7.74% 4.20%4 51,707 - - 37,014 88,721 4.67% 6.08%5 - - - 35,000 35,000 4.42% 2.40%6 - - - 24,447 24,447 3.09% 1.68%7 - - - 21,230 21,230 2.68% 1.46%8 - - - 20,000 20,000 2.52% 1.37%9 - - - 18,100 18,100 2.29% 1.24%

10 - - - 16,560 16,560 2.09% 1.14%Other Debtors 312,185 15,051 287,643 360,760 975,639 45.55% 66.89%

Total 363,891 15,051 287,643 792,093 1,458,679 100.00% 100.00%

TABLE 6.4 Progress on Debt Recovery. Comments for top 10 over 90 days from table above

Top Ten Debtors123456789

10

GRAPH 6.5 Outstanding Debtors as a percentage

Progress for the recovery of Funds Comment

The City has lodged a Caveat on the land title. Monies to be recovered upon sale of property.

Referred to Fines Enforcement Registry for enforcement.

Sundry debtors include all monies owed to the City other than those relating to Rates. This includes but is not limited to invoicesraised for grants, leasing of City's premises, and recovery of costs for services provided to developers. The City issues invoiceswith 7 day payment terms.

Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.


Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.



As % of 90 Days Plus Debtors

As % of Total DebtorsTop Ten > 90 Day

Debtors


Current 25%

30 Days 1%

60 Days 20%

90 Days plus 54%

7.1

Income from Operating Activities

Governance 470% Favourable Variance of $328,781

Health 130% Favourable Variance of $146,312

Education & Welfare 16% Unfavourable Variance of $382,175

Transport 15% Favourable Variance of $141,002

Economic Services 29% Favourable Variance of $183,475

Expenditure from Operating Activities

General Purpose Funding 10% Favourable Variance of $115,734

In Health, Annual Food Safety fees continue to be the main cause of the favourable variance, with ytd fees collected amounting to $208k at the end of the period. During the budget review process this account will be analysed and a budget adjustment will be processed accordingly if required.

The Formula Local Road grant received was $160k more than the original budget. A budget adjustment to recognise the additional revenue will be processed during the mid-year budget review process.

Within Economic Services, the National Economic Development Conference revenue was $143k more than anticipated. A budget adjustment was processed in September, to take the additional revenue into account.

Legal costs within the Rating Services cost centre were overspent by $29k and were offset by Recoup of Legal costs which were above budget by $119k. Postage and Bank Charges also reflected an above budget spend result of $37k and $49k respectively. This was offset by Collection Charges which were underspent by $67k.

The KidSport grant was acquitted in November and is yet to be received, accounting for $356k of the unfavourable result. In addition, the Swan Community Care HACC grant was $229k less than anticipated. The unfavourable variances were largely offset by the Swan Community HACC Transport grant and the Aged Care grant, which were over budget by $128k and $73k respectively.

The City received an insurance rebate of $202k from the LGIS relating to prior financial years, mainly contributing to the positive variance within Governance.

A Local Government is to prepare each month a statement of financial activity as prescribed by Regulation (34) of the Local Government (Financial Management) Regulations 1996. The statement of financial activity must report on the revenue and expenditure, as set out in the annual budget under FM Regulation 22(1)(d), taking into account any expenditure incurred for an additional purpose under section 6.8(1)(b) or (c). It includes original budget estimates to the end of the month to which the statement relates and actual amounts of expenditure and revenue to the end of the month. The statement must include material variances between the comparable amounts in ytd budget and ytd actual and an explanation of each. The net current assets at the end of each month have to be shown within the statement of financial activity.The report calculates variances based on the Original Budget. The actual figures for the year to date are compared to the year to date original budget to present a monetary variance as well as the variance shown as a percentage of the budget.

The composition of net current assets is also required to be presented as support to the statement and this is presented showing funds at the end of the current month, those at the previous 30 June and also those at the end of the corresponding month in the previous year. A graph is also included that identifies the monthly movement in funds for the current year and the previous two years.

Report on Significant Variances of 10% of Original Budget and greater than $10,000 in value

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Governance 17% Favourable Variance of $918,966

Education & Welfare 12% Favourable Variance of $458,160

Transport 30% Favourable Variance of $4,601,279

Economic Services 15% Favourable Variance of $373,725

Other Property and Services 60% Unfavourable Variance of $697,719

Non Cash Items

Depreciation 18% Favourable Variance of $2,809,430

Provisions and Other Accruals 133% Unfavourable Variance of $895,044

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 57% Unfavourable Variance of $4,218,400

Developer Contributions Plans: Cash Contribution 10% Favourable Variance of $296,562

The Roads to Recovery grant received in November was $2.9m less than budget expectations. An additional payment from Main Roads is expected during the course of the financial year. Capital grants for Buildings and Urban Arterial Roads were also below budget by $1.3m and $646k respectively, as works have not progressed enough to warrant the acquittal of grants.

In November, $697k was collected for Developers Contributions. Collections comprised of $535k for Brabham and $162k for Caversham. Fluctuations between actuals and budget are expected due to the uncertain nature of Developers Contributions.

Provisions and other accruals comprise of long service leave movement and other non current employee provisions. The $895k unfavourable variance is expected to align to budget as the year progress.

Projects Studies and Surveys accounted for $423k of this favourable result. The following operating projects displayed significant below budget spend: HACC Program Swan Community Care Services $75k, Cultural Events $39k, Youth Initiative-HYPER $65k and Swan Community Grants $80k. Variances are expected to align closer to budget as the year progresses.

Depreciation was the main contributor to the favourable variance within Transport, being $3.1m below budget. Following the 2015/16 year end asset review, the useful lives of asset were revised, impacting on depreciation charge rates. Depreciation variances will be analysed during the mid-year budget review and budget adjustments will be processed accordingly.

Overhead Recovery was below budget expectations by $577k and was the main cause of the unfavourable result. Capital projects expenditure, which is correlated to overhead recovery was significantly below budget due to slow progress in works. As the year progress it is expected that capital works will advance and actuals will align closer to budget.

The 18% favourable variance in the depreciation expense is a result of depreciation rates and remaining useful lives of all asset classes being reviewed and amended where applicable at the end of the prior financial year. It is anticipated that budgeted depreciation will be adjusted as part of the budget review process.

Within Economic Services, Operating projects accounted for $127k of the positive variance. The following projects have recorded nil expenditure against their annual budgets: Midland Implementation Plan 2010-2017 $60k budget, Urban Design/Heritage Working Paper $80k budget, Local Planning Strategy $10k budget and Rural Strategy $10k budget.

Consultants were under budget by $208k and Employee Costs by $468k, due to positions relating to the Core System Replacement being vacant for part of the financial year and due to some positions that are still vacant. Significant below budget spend of $394k was also noted for Projects, Studies and Surveys, with the Leadership Development Program project accounting for $71k, Corporate Website $30k and Swan Valley Publications $30k. Computing Licence Fees were over budget by $95k, offsetting the positive variances. A budget adjustment is pending.

7.3

Purchase of Plant and Equipment 42% Favourable Variance of $8,856,345

Purchase or Construction of Infrastructure 41% Favourable Variance of $9,217,133

Other Non Operating Items

Loan Principal Repayments 24% Favourable Variance of $578,582

Other Funding Sources

Transfer from Reserves 35% Unfavourable Variance of $7,461,949

Transfer (to) from Trust Funds 100% Favourable Variance of $1,636,163

Profit on Impairment of Investments 100% Favourable Variance of $1,574,446

Proceeds from Sale of Assets 89% Unfavourable Variance of $4,805,249

Self Supporting Loans Repayments 75% Unfavourable Variance of $27,238

Proceeds from New Loans 100% Unfavourable Variance of $4,763,358

Movement in Deferred Rates (Non-Current) 232% Unfavourable Variance of $155,381

Opening Net Current Assets July 1 B/Fwd. 101% Favourable Variance of $8,763,981

Quarterly and biannual invoicing of Self Supporting Loans is responsible for the timing difference in the Self Supporting Loan repayments resulting in the 75% unfavourable variance. The variance is anticipated to smooth out over the course of the year.

The City is yet to draw any new loans this financial year, as the timing of the loans are aligned with spending on capital projects and the acquisition of assets. The $4.8m variance is expected to reduce during the second half of the year as spending is increased.

This is a timing difference which is a consequence of pensioners deferring their rates. The variance is expected to reduce as payments are received during the year.

The majority of this favourable variance relates to carry forwards for capital works, with the second largest contributor being a prior year adjustment to recognise interest earnings on the Emergency Services Levy. The balance relates to operating revenue being greater than budget and operating expenditure being lower than budget.

Budgeted asset disposals to date have been slow which resulted in the $4.8m unfavourable variance in proceeds from sales. Disposals are expected to fall in line with budget in the second half of the financial year.

The favourable variance in trust distribution is attributed to transfers that are yet to be actioned. The transfers are subject to sale of land transactions that are yet to occur.

An unbudgeted $1.6m recovered as a result of class action legal proceedings, resulted in the 100% favourable variance. It is anticipated that the budget will be adjusted during the mid-year review.

There has been an underspend on capital projects in the first few months of the financial year resulting in the unfavourable variance of $7.5m in the Transfers From Reserves. Expenditure is anticipated to increase during the second half of the financial year resulting in actuals aligning to budget.

The variance is mostly attributed to Land Purchases and Building works which were below budget by $2.5m and $4.3m respectively. It is expected that as the year progresses these budget will be utilised and the variances will reduce.

The favourable result was mainly due to underspending for: Parks $4m, Roads $3.8m and Drainage $1.2m. The following projects with significant annual budgets have recorded nil or minimal costs: Lord Street $3.3m budget, Hepburn Avenue $3.9m budget, Paradise Quays $1.6m budget and Hazelmere/Guildford Drainage $1.2m budget.

The cause of the $579k favourable variance in loan repayments is attributed to timing. It is anticipated to reduce and align to budget as City loans are drawn in the second half of the financial year, in line with expenditure of capital projects.

7.4

Original Budget2016/17

Revised Budget2016/17

YTD ORIGINALBUDGET

@ 30 NOVEMBER 2016

YTD ACTUAL@ 30 NOVEMBER

2016

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

116,312,404 116,312,404 Rates 115,417,803 115,078,979 (338,824) - -11,224,090 11,224,090 Grants and Other Contributions 5,570,004 5,552,683 (17,322) - -

127,536,494 127,536,494 Total General Purpose Funding 120,987,807 120,631,662 (356,145) - -166,830 166,830 Governance 70,023 398,804 328,781 F 470%

2,333,190 2,307,190 Law, Order and Public Safety 1,787,159 1,820,945 33,786 - -271,000 271,000 Health 112,917 259,228 146,312 F 130%

4,526,420 4,526,420 Education and Welfare 2,459,288 2,077,113 (382,175) U (16%)60,000 60,000 Housing 25,000 27,507 2,507 - -

21,973,000 21,976,700 Community Amenities 21,055,417 22,294,710 1,239,293 - -7,177,270 7,177,270 Recreation and Culture 2,828,646 2,837,257 8,611 - -1,663,940 1,663,940 Transport 939,500 1,080,502 141,002 F 15%1,530,000 1,686,300 Economic Services 637,500 820,975 183,475 F 29%3,032,420 3,032,420 Other Property and Services 1,263,509 1,192,229 (71,279) - -

170,270,564 170,404,564 Subtotal Income 152,166,765 153,440,932 1,274,168

Expenditure(2,942,622) (2,941,362) General Purpose Funding (1,121,837) (1,006,104) 115,734 F (10%)

(13,281,212) (13,194,311) Governance (5,402,503) (4,483,537) 918,966 F (17%)(6,073,486) (6,028,616) Law, Order and Public Safety (2,528,539) (2,523,330) 5,209 - -(1,827,893) (1,828,563) Health (761,624) (711,559) 50,065 - -(9,357,259) (9,342,529) Education and Welfare (3,968,338) (3,510,178) 458,160 F (12%)

(99,167) (99,167) Housing (41,320) (35,094) 6,225 - -(25,107,287) (25,228,957) Community Amenities (10,442,773) (10,006,164) 436,610 - -(51,727,302) (51,797,302) Recreation and Culture (21,814,068) (20,017,298) 1,796,770 - -(36,977,516) (37,049,356) Transport (15,356,432) (10,755,153) 4,601,279 F (30%)

(6,052,841) (6,312,281) Economic Services (2,521,972) (2,148,247) 373,725 F (15%)(2,931,126) (2,870,076) Other Property and Services (1,156,993) (1,854,712) (697,719) U 60%

(156,377,712) (156,692,522) Subtotal Expenditure (65,116,400) (57,051,375) 8,065,025

13,892,852 13,712,042 Net Operating Profit / (Loss) 87,050,365 96,389,557 9,339,192

ADD NON CASH ITEMS37,518,100 37,518,100 Depreciation 15,632,542 12,823,112 2,809,430 F 18%

1,617,197 1,617,197 Provisions and Other Accruals 673,832 1,568,876 (895,044) U (133%)39,135,297 39,135,297 Subtotal Non Cash Items 16,306,374 14,391,988 1,914,386

53,028,149 52,847,339 Net Operating Surplus / (Deficit) 103,356,739 110,781,545 11,253,579

LESS CAPITAL INCOME & EXPENDITURE12,350,970 12,600,670 Capital Grants, Subsidies & Contributions 7,403,697 3,185,296 (4,218,400) U (57%)

7,203,730 7,203,730 Developers Contributions: Cash contribution 3,001,554 3,298,116 296,562 F 10%11,117,490 11,117,490 Developers Contributions: In Kind Contribution - - - - -22,496,510 22,496,510 In Kind Developer Contributions: Other - - - - -

(50,296,070) (54,352,510) Purchase of Plant and Equipment (20,956,696) (12,100,351) 8,856,345 F (42%)(29,530,870) (29,530,870) Assets Contributed by Developers - - - - -(54,122,030) (58,279,665) Purchase or Construction of Infrastructure (22,550,846) (13,333,713) 9,217,133 F (41%)

(4,083,130) (4,083,130) Land Ceded to the Crown - - - - -(84,863,400) (92,827,775) Subtotal Capital Income and Expenditure (33,102,291) (18,950,651) 14,151,639

LESS OTHER NON OPERATING ITEMS(5,869,484) (5,869,484) Loan Principal Repayments (2,445,618) (1,867,036) 578,582 F (24%)

(41,901,318) (43,472,322) Transfer to Reserves (17,458,883) (15,963,989) 1,494,894 - -(47,770,802) (49,341,806) Subtotal Other Non Operating Items (19,904,501) (17,831,025) 2,073,476

OTHER FUNDING SOURCES50,934,391 58,947,386 Transfer from Reserves 21,222,663 13,760,713 (7,461,949) U (35%)(3,926,790) (3,926,790) Transfer (to) from Trust Funds (1,636,163) - 1,636,163 F (100%)

- 1,571,000 Profit on Impairment of Investments - 1,574,446 1,574,446 F 100%13,024,762 13,024,762 Proceeds from Sale of Assets 5,426,984 621,735 (4,805,249) U (89%)

87,481 87,481 Self Supporting Loans Repayments 36,450 9,213 (27,238) U (75%)11,432,060 11,432,060 Proceeds from New Loans 4,763,358 - (4,763,358) U (100%)

(160,652) (160,652) Movement in Deferred Rates (Non current) (66,938) (222,319) (155,381) U (232%)8,713,685 8,713,685 Opening Net Current Assets July 1 B/Fwd 8,713,685 17,477,666 8,763,981 F (101%)

80,104,937 89,688,932 Subtotal Other Funding Sources 38,460,040 33,221,454 (5,238,586)

498,883 366,689 CLOSING NET CURRENT ASSETS YTD 88,809,987 107,221,321 18,411,334

CITY OF SWANSTATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @30 NOVEMBER 2016

ACTUAL @JUNE 2016

ACTUAL @NOVEMBER 2015

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 77,308,574 30,723,289 75,456,452Restricted Cash, Cash Equivalents & Investments 102,446,289 102,524,229 97,960,690Rates Debtors Current 52,248,810 6,949,724 46,412,994Trade and Other Receivables 2,829,037 2,723,870 3,597,626Prepayments 604,830 776,014 564,740Inventory 271,268 169,838 122,034Total Current Assets 235,708,807 143,866,964 224,114,536

Less Current LiabilitiesIncome in Advance (771,545) - (608,023)Accounts Payable (19,200,653) (18,472,821) (18,324,042)Provisions - Employee Entitlements (12,888,785) (12,847,797) (11,095,393)Loan Repayments (3,544,991) (5,412,027) (3,638,500)Total Current Liabilities (36,405,974) (36,732,645) (33,665,958)

Net Current Assets 199,302,834 107,134,319 190,448,578

Add Back Restricted LiabilitiesLSL Reserve 6,898,054 5,958,432 5,412,398Loan Repayments 3,544,991 5,412,027 2,785,585Self Supporting Loan Contributions (78,268) (87,481) (48,403)

Adjusted Net Assets 209,667,610 118,417,297 198,598,158

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (99,401,856) (97,198,580) (92,014,290) Bond monies (3,044,434) (3,741,051) (5,946,400)

Closing Funds 107,221,321 17,477,666 100,637,468

* Changed to reflect Local Government of Western Australia Guideline - Number 8 - June 2013.

CITY OF SWAN NET CURRENT FUNDING POSITION

AS AT 30 NOVEMBER 2016

10

30

50

70

90

110

130

150

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

Mill

ion

$

Liquidity Over Three Years

2014/152015/162016/17

8.1

1. STATEMENT OF CASH FLOW

2. RATE SETTING STATEMENT

Cash flow information provides users of financial reports with a basis to assess the ability of an entity to generatecash and cash equivalents and the needs of the entity to utilize those cash flows. The cash flow statement shallreport flows during the period classified by operating, investing and financing activities. The key objective of a cashflow forecast is to predict the period in which cash inflows and outflows will occur.

It is essential that local governments have meaningful and accurate financial information on which to base decisions.The starting point for sound financial management is the preparation of the Rate Setting Statement. This statementis a crucial component of the budget process and shows how much rates are required to pay for the localgovernment's operations. The Rate Setting Statement is a statutory requirement and is unique to local governmentin that it contains values of opening funds and closing funds. Opening funds refer to 'net current assets less restrictedfunds and committed cash and amounts already reflected in the current year budget'. The opening fund forms partof the calculation of the amount of the deficiency to be raised from rates as referred to in s 6.2(2)(C) of the LocalGovernment Act.

8.0 Other Statutory Reports8.0 Other Statutory Reports

8.2

ORIGINALBUDGET2016/17

REVISEDBUDGET2016/17 CASH FLOWS FROM OPERATING ACTIVITIES

YTD ACTUAL@ 30 NOVEMBER 2016

ACTUAL @30 JUNE 2016

Receipts116,058,352 116,312,404 Rates Revenue 70,329,119 111,701,344

1,172,000 1,172,000 Service Charges 1,215,564 1,189,82635,662,650 35,662,650 Fees & Charges 28,228,561 36,636,208

5,751,290 5,751,290 Interest Earnings 2,589,749 5,096,97110,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,229,128 7,942,983

1,134,698 1,134,698 All other revenue 907,316 1,952,7174,379,020 4,379,020 GST Inflow 2,808,131 6,084,086

174,479,070 174,723,122 Total Receipts 111,307,567 170,604,135Payments

(32,398,685) (33,363,673) Materials & Contracts (9,319,140) (24,457,974)(6,575,148) (6,570,760) Utility Charges (2,151,335) (5,914,655)

(74,563,550) (74,812,790) Employee Costs (29,407,793) (66,658,084)(668,280) (668,280) Insurance Payments (873,438) (674,790)

(2,141,200) (2,141,200) Interest Payments (459,730) (2,084,173)(1,616,720) (1,617,720) Other Payments (1,246,527) (1,666,615)(4,661,904) (4,661,904) GST Outflow (2,729,967) (5,907,824)

(122,625,487) (123,836,327) Total Payments (46,187,929) (107,364,115)51,853,582 50,886,794 Net cash provided / (used) by operating activities 65,119,638 63,240,018

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(50,296,070) (54,352,510) Purchase / Construction of capital assets (12,100,351) (27,494,941)(54,122,030) (58,279,665) Purchase / Development of infrastructure (13,333,713) (57,305,279)

(3,926,790) (3,926,790) Transfer (to) from Trust Funds - -- - Proceeds from Disposal of Investments 1,574,446 2,097,682

(108,344,890) (116,558,965) (23,859,617) (82,702,538)Receipts

12,350,970 12,600,670 Capital Grants, Subsidies & Contributions 3,185,296 18,123,6747,203,730 7,203,730 Developers Contributions 3,298,116 11,174,411

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 621,735 2,473,56232,579,462 32,829,162 7,105,147 31,771,647

(75,765,428) (83,729,803) Net cash provided / (used) by investing activities (16,754,470) (50,930,891)CASH FLOWS FROM FINANCING ACTIVITIES

11,432,060 11,432,060 Proceeds from Loan Borrowings - 6,848,620(5,869,484) (5,869,484) Repayment of Borrowings (1,867,036) (5,430,069)

87,481 87,481 Contributions - Self supporting loans 9,213 95,286- - ESL Movements - (276,932)

5,650,057 5,650,057 Net cash provided / (used) by financing activities (1,857,823) 1,236,905(18,261,789) (27,192,952) Net increase / (decrease) in cash held 46,507,345 13,546,032118,753,596 118,753,596 Cash at the beginning of the year 133,247,518 119,701,485100,491,807 91,560,644 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 179,754,863 133,247,518

CITY OF SWAN STATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2016/17

REVISEDBUDGET2016/17 OPERATING REVENUE

YTD ORIGINALBUDGET

@ 30 NOVEMBER 2016

YTD ACTUAL@ 30 NOVEMBER

20161,172,000 1,172,000 Service Charges 1,172,000 1,215,564

35,662,650 35,662,650 Fees & Charges 26,782,495 28,228,5612,588,578 2,588,578 Specified Area Rates 2,588,578 2,627,935

10,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,527,600 5,229,1285,751,290 5,751,290 Interest Earnings 2,832,121 2,781,3861,051,160 1,195,160 Other Revenue 434,745 907,316

56,546,738 56,680,738 Subtotal - operating revenue 39,337,540 40,989,891OPERATING EXPENSE

(74,643,550) (74,812,790) Employee Costs (30,620,271) (29,473,225)(33,219,103) (33,363,673) Materials & Contracts (14,007,798) (10,720,629)

(6,570,760) (6,570,760) Utility Charges (2,545,891) (2,151,335)(37,518,100) (37,518,100) Depreciation on Non-Current Assets (15,632,542) (12,823,112)

(2,141,200) (2,141,200) Interest Expenses (604,162) (459,730)(668,280) (668,280) Insurance Expenses (1,051,723) (873,438)

(1,616,720) (1,617,720) Other Expenses (654,013) (549,910)(156,377,713) (156,692,523) Subtotal - operating expense (65,116,400) (57,051,377)

(99,830,975) (100,011,785) Net cash from / (Non) operating activities (25,778,860) (16,061,487)Non Cash Items

(160,652) (160,652) Movement in Deferred Rates (Non Current) (66,938) (222,319)1,617,197 1,617,197 Movement in Employee Provisions and Adjustments 673,832 1,568,876

37,518,100 37,518,100 Write Back Depreciation 15,632,542 12,823,11238,974,645 38,974,645 Total 16,239,436 14,169,668

Capital Works(54,122,030) (58,279,665) Purchase / Construction of infrastructure assets (22,550,846) (13,333,713)(29,530,870) (29,530,870) Developer contributions - Infrastructure - -(50,296,070) (54,352,510) Purchase / Construction of other capital assets (20,956,696) (12,100,351)

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 5,426,984 621,73512,350,970 12,600,670 Capital Grants, subsidies & Contributions 7,403,697 3,185,296

7,203,730 7,203,730 Developers contributions: Cash 3,001,554 3,298,11611,117,490 11,117,490 Developers contributions: In kind - -22,496,510 22,496,510 In Kind Developer Contributions: Other - -(4,083,130) (4,083,130) Land Ceded to the Crown - -

(71,838,638) (79,803,013) Net Capital Outlays (27,675,307) (18,328,916)Debt Management

11,432,060 11,432,060 Proceeds from New Loans 4,763,358 -(5,869,484) (5,869,484) Repayment of Loans (2,445,618) (1,867,036)

87,481 87,481 Contributions to Debt 36,450 9,2135,650,057 5,650,057 Total 2,354,190 (1,857,823)

Other Funding Transactions- 1,571,000 Profit/Recovery Impairment of Investments - 1,574,446

(3,926,790) (3,926,790) Transfer (to) from Trust Funds (1,636,163) -50,934,391 58,947,386 Transfers from reserves 21,222,663 13,760,713

(41,901,318) (43,472,322) Transfers to reserves (17,458,883) (15,963,989)5,106,283 13,119,274 Net Movement in Reserves 2,127,618 (628,829)

8,713,685 8,713,685 Opening Funds 1 July - Net Current Assets 8,713,685 17,477,666(498,883) (366,689) Less Closing Funds 30 June - Net Current Assets (88,809,987) (107,221,321)8,214,802 8,346,996 Net Current Assets (Less Restricted) (80,096,302) (89,743,655)

113,723,826 113,723,826 SHORTFALL TO BE MADE UP FROM RATES 112,829,225 112,451,043


CITY OF SWANRATE SETTING STATEMENT

financial management report november 2016

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