welcome []€¦ · its annual report for 2012-13. this report provides the community with...

Welcome

The City of Swan is proud to present its Annual Report for 2012-13.

This report provides the community with comprehensive financial data to inform our ratepayers, residents and other key stakeholders how the City has used public funds to build a better place to live, work, invest and recreate.

The report also details key milestones achieved throughout the year and provides information on major projects, services and facilities.

Our Annual Report is the City’s primary means of reporting on our performance during the financial year against our objectives outlined in our Strategic Community Plan 2012-22 (SCP).

This is the first year the City is reporting against the new SCP, which is the City’s principal strategy and planning document. It sets out our vision, aspirations and objectives for the Swan community over the next 10 years.

The SCP will be reviewed periodically and community input will be sought every four years to ensure our vision remains in line with that of our community.

Table of contents

OUR CITY 2

WARD MAP 3

ELECTED REPRESENTATIVES 4

COUNCIL MEETING ATTENDANCE 7

OUR VISION 9

STRATEGIC COMMUNITY PLAN 10

KEY PERFORMANCE INDICATORS 12

MAYOR’S MESSAGE 18

CEO’S MESSAGE 19

FIVE YEAR KEY SUMMARY OF STATISTICS 21

ORGANISATIONAL STRUCTURE 22

ECONOMIC 25Planning for the futureTourism

NATURAL ENVIRONMENT 28Leading by example Waste servicesEmbracing green technology Emergency planningPreserving natural ecosystems

BUILT ENVIRONMENT 34Major projects Building approvals Strategic planning Managing our assetsSustainable transport

SOCIAL 42Sport and recreationAn inclusive communityOur young peopleLibrariesBuilding capacityCommunity care servicesYouth servicesCommunity safetyHealth

GOVERNANCE 52Freedom of InformationPromoting the CityMetropolitan Local Government ReviewCustomer servicePlace managementResponsible governanceGrants and sponsorship

FINANCIAL REPORTS 60

2 annual report 2012/2013

Our City

An introduction to the City of SwanAt 1,044 square kilometres, the City of Swan is geographically the largest Local Government in the Perth metropolitan area. We have a unique blend of residential, commercial, industrial and rural land uses.

We have a long and rich history. Inhabited by Aboriginal people from the Wadjuk Noongar group prior to European arrival, the region was one of three original settlements in Western Australia. Heritage buildings from this era are treasured reminders in our community and sit at the start of a trail through the renowned tourism region of the Swan Valley.

Our diversity is also reflected in the City’s population. We have a large Culturally and Linguistically Diverse (CaLD) community, with about 30 per cent of our population born overseas. We also have the largest Aboriginal population in the metropolitan area, making up three per cent of local residents.

Our population is continuing to grow rapidly, with forecast average annual population growth over the next 23 years (2013-2036) expected to be 2.47 per cent. This population growth has necessitated additional housing. The City is home to many new greenfield subdivisions, particularly in the Ellenbrook Place area and Urban Growth Corridor suburbs of Bennett Springs, Brabham and Dayton. Additional housing is also being achieved through increased densities, part of the revitalisation of established suburbs such as Midland.

The City is also experiencing rapid economic growth due to increased activity in the manufacturing, construction and retail sectors. This contributes to our aim of ensuring local jobs are available for City residents.

With such a dynamic area, it is important we plan well for our future and it is equally important that our planning fits in with the needs, aspirations and vision of our residents and ratepayers.

Altone

Wards

Ballajura

Ellenbrook

Midland/Guildford

Swan Valley/Gidgegannup

North

CAVERSHAM

WEST SWANBR

ABHA

M

HENLEYBROOK

BASKERVILLE

BRIGADOON

MILLENDON

HERNE HILL

MIDDLESWAN

RED HILL

UPPER SWAN

BULLSBROOK

MELALEUCA

LEXIA

BALLAJURA

MALAGA

GIDGEGANNUP

SOUTH GUILDFORD

GUILDFORD

HAZELMERE

WOODBRIDGE

STRATTON

MIDVALE

BELHUS

CULLACABARDEE

NORANDA

KIARA

JANE BROOK

SWAN VIEW VIVEASH

MIDLANDBELLEVUE

KOONGAMIA

PERTH AIRPORT

AVELEY

ELLENBROOK

WHITEMAN

WALYUNGA NATIONAL

PARK

THEVINES

BEECHBORO

DAYTON

AVON VALLEYNATIONAL PARK

LOCKRIDGE

BENNETT SPRINGS

Ward map of the City of Swan

3annual report 2012/2013

Altone Ward CR MICK WAINWRIGHTDeputy MayorTerm ends: 2013First elected: 2005t: 9377 7845e: [email protected]

Ellenbrook Ward CR NATASHA CHEUNGTerm ends: 2015First elected: 2007t: 0433 288 953e: [email protected]

Elected representatives

Altone Ward CR DAVID FÄRDIGTerm ends: 2013First elected: 1992t: 9279 6752e: [email protected]

Altone Ward CR DAVID LUCASTerm ends: 2015First elected: 1992t: 9378 2180e: [email protected]

Swan Valley/Gidgegannup Ward CR CHARLIE ZANNINOMayorTerm ends: 2015First elected: 1987 to 1993, re-elected 1999 through to presentt: 9267 9104e: [email protected]

Ellenbrook Ward CR PATTY WILLIAMSTerm ends: 2013First elected: 2009t: 0428 882 778e: [email protected]

The City is represented by 15 elected members, made up of the Mayor, Deputy Mayor and 13 Councillors. Each elected member, including the Mayor and Deputy Mayor, represents one of the City’s seven wards, but governs for the entire City.

The elected representatives work together to provide good governance by making decisions on all aspects of community, social, environmental and economic wellbeing, through effective strategic planning and by balancing competing interests openly and fairly.


Midland Ward CR JOE MARINOTerm ends: 2013First elected: 1997 to 1999Re-elected 2001 to 2013

Swan Valley/Gidgegannup Ward CR DARRYL TREASE, JPTerm ends: 2013First elected: 2009t: 0418 917 513e: [email protected]

Ballajura Ward CR MEL CONGERTON, JPTerm ends: 2015First elected: 1999t: 0417 831 727e: [email protected]

Midland Ward CR SANDRA GREGORINITerm ends: 2015First elected: 2009t: 9294 1827e: [email protected]

Ballajura Ward CR MARIA HAYNES, JPTerm ends: 2015First elected: 1989t: 9249 1344e: [email protected]

North Ward CR KEVIN BAILEYTerm ends: 2013First elected: 2005t: 9571 2726e: [email protected]

Guildford Ward CR TED WILLIAMS Term ends: 2013First elected: 2009

Ballajura Ward CR JOHN McNAMARATerm ends: 2013First elected 1997t: 9249 5039e: [email protected]

Midland Ward CR MARK ELLIOTTTerm ends: 2015First elected: 2011t: 0458 660 804e: [email protected]



Council meeting attendance

Financial year 2012-13

Possible number of meetings attended

Actual number of meetings attended

Possible number of briefings attended

Actual number of briefings attended

Cr K Bailey 17 17 22 17

Cr N Cheung 17 12 22 12

Cr M Congerton 17 16 22 17

Cr M Elliott 12 16 22 18

Cr D Färdig 17 15 22 17

Cr S Gregorini 17 14 22 18

Cr M Haynes 17 16 22 19

Cr D Lucas 17 17 22 19

Cr J Marino 17 16 22 18

Cr J McNamara 17 12 22 16

Cr D Trease 17 14 22 12

Cr M Wainwright 17 12 22 18

Cr P Williams 17 16 22 21

Cr T Williams 17 15 22 18

Cr C Zannino 17 16 22 21

No Special Meetings of Council were held during this financial year.

Our visionOne City, diverse PlacesOur City reflects the diversity of our people, our industry, and our landscapes, providing a place where people want to live, work and recreate.

Our City is a place for all people, having access to local and central services and employment that meets changing community needs and growth, while being affordable, innovative and celebrating and protecting our rich history, heritage and culture.

Our City is a significant and thriving economic region, contributing to the growth and wealth of our community and the State.

Emergent themesAs we developed our Strategic Community Plan, clear themes were identified that need to be considered so that we can achieve our strategic objectives. These emergent themes will guide the work that is delivered in our community.

Place based services: We are committed to build and support our diverse places, providing access to services close to our communities of interest through local vibrant community hubs.

Service models: We aim to provide inclusive and accessible services and assets in efficient delivery models, partnering with government, the private sector and not-for-profit agencies when required.

Sustainable growth and employment access: We are committed to economic and industry growth and diversity to ensure the City provides local services, industry access, local employment and diverse places to live.

Our commitment to our communityWe make a commitment to our community about how we will work to achieve our strategic objectives.

Leadership: We will advocate on behalf of our community to position our City with key stakeholders that will support our success and growth.

Accountable and sustainable: We will be transparent, display good governance and manage our customer service commitments within our resources.

Advocating improvement and reform: We are determined to be solution focused, proactively seeking innovative partnerships, working collaboratively with stakeholders and industry to enable growth and ensure that our City is viable.


Our Strategic Community Plan 2012-2022The SCP guides the City in the short and long term. The five year key result areas were developed in consultation with the community and each year we will report back to the community against the goals we set.

EconomicOutcome: Accelerated economic growthObjective: Attract business and investment opportunitiesStrategies:

• Identify extent and type of industry growth and address our economic vulnerability

• Provide prioritised industrial and commerce areas through land use planning

• Accelerate the development of future industrial areas

• Target and attract identified industries to capitalise on the power economy of Western Australia

• Strengthen Midland as the economic centre ensuring our community needs are met

Outcome: Sustainable business commerce growthObjective: Actively support and develop local and new businessStrategies:

• Lobby for the technological infrastructure necessary to support commercial and business growth

• Create business and community partnerships• Review and align land use and infrastructure plans

Outcome: A great place to visitObjective: Strengthen the capacity and integration of the tourism industryStrategies:

• Develop partnerships to actively support visitor growth

• Support our heritage tourism hubs for future generations

Natural environmentOutcome: Our environment is protected for future generationsObjective: Mitigate the City’s carbon footprint, reducing waste and greenhouse gas productionStrategies:

• Effectively manage resource consumption, including water, energy and non-renewable resources

• Reduce waste through reduction, re-use and recycling of waste products

• Preserve and protect air qualityObjective: Adapt to the effects of climate changeStrategies:

• Minimise the impact of extreme weather conditions through emergency management planning

• Implement Policy changes through planning, building, land management and infrastructure

Outcome: Biodiversity retentionObjective: Preserve and protect local ecology and biodiversity of natural ecosystemsStrategy: Conserve open spaces, natural vegetation and bushlandObjective: Reduce adverse impacts on biodiversityStrategies:

• Protect waterways through appropriate land management practices

• Implement ‘best practice’ in management of ground and surface water


Built environmentOutcome: Community places to live, recreate and workObjective: Facilitate and integrate housing options, local services, employment and recreational spacesStrategies:

• Facilitate diverse, inclusive housing options• Align land use and infrastructure planning• Provide commercial and industrial land aligned to

economic need and growth• Provide appropriate open space to recreate and

connectObjective: Build a sense of place through open spacesStrategy: Create and align Place Land Use Plans

Outcome: Infrastructure that meets community needObjective: Manage current and future assets and infrastructureStrategies:

• Continue to improve asset management practices• Maintain and protect heritage

Outcome: Sustainable transport solutionsObjective: Advocate and provide alternative transportStrategies:

• Lobby and advocate for public transport• Provide bicycle and pedestrian connections

SocialOutcome: Accessible services meeting changing community needsObjective: Determine service requirements and delivery options in the areas of aged, youth, families and childrenStrategies:• Develop acceptable service levels and service

delivery models• Seek alternative service providers to facilitate

appropriate service access such as other agencies, non-government organisations and community groups

• Strengthen advocacy role on behalf of our community

Outcome: Community health and wellbeingObjective: Strengthen Place based access and delivery of servicesStrategies:

• Strengthen Place based management of services• Create a sense of place and culture and belonging

through inclusive community interaction and participation

• Advocate and continue to strengthen relationships with our diverse cultural community

Objective: Build a strong sense of community health and safetyStrategy: Facilitate improvement of community safety

GovernanceOutcome: City of Swan is seen as a place to live, work and visitObjective: Provide accountable and transparent leadershipStrategies:

• Continue to develop policy framework that guides decision making

• Integrate planning, resources and reporting• Manage future Local Government reforms

Objective: Promote the City of Swan as a place to live, work and visitStrategies:

• Develop successful and collaborative partnerships• Advocate for infrastructure and access to services• Promote, advocate and market the City’s profile

Outcome: Optimise use of City resourcesObjective: Improve capability and capacity

Strategies: Strengthen Place based delivery model

• Improve organisational systems• Strengthen customer service• Use resources efficiently and effectively


Key Performance Indicators (KPIs)The City uses KPIs to define and measure its performance. Regular review of the data helps the City to ensure it is on target to meet, or exceed, these KPIs.

The City has developed the following indicators to measure the progress of its Strategic Plan implementation. These established measures are then cascaded through the organisation.

E1 - Outcome - Accelerated economic growthObjective Strategy Measures 2012/13 Data

E1.1 Attract business and investment opportunities

E1.1.1 Identify extent and type of industry growth and address our economic vulnerability

E1.1.2 Provide prioritised industrial and commerce areas through land use planning

E1.1.3 Accelerate the development of future industrial areas

E1.1.4 Target and attract identified industries to capitalise on the power economy of Western Australia

E1.1.5 Strengthen Midland as the economic centre ensuring our community needs are met

Number of people employed per industry type

Table A

% unemployment 4.1% (March Quarter, 2013)

6.1% (March Quarter, 2012)

$ household disposable income $4,849.4 million (2011/12)

$4,466.1 million (2010/11)

% of workforce who are City of Swan residents

34.8%

(Source: Economy.id - 2011 Census)

% residents working in locations outside the City

56.8%

(Source: Profile.id - 2011 Census)

Note: Census shows 12.3% of residents with “unknown” workplace

$ Annual Gross Regional Product (compared to WA)

Swan: $7,487 million (2012)

WA: $244,174 million (2012)

E2 - Outcome - Sustainable business commerce growthObjective Strategy Measures 2012/13 Data

E2.1 Actively support and develop local and new business

E2.1.1 Lobby for the technological infrastructure necessary to support commercial and business growth

E2.1.2 Create business and community partnerships

E2.1.3 Review and align land use and infrastructure plans

Number of new businesses registered in the City per industry type

Table B

$ turnover per industry type Table C

% satisfaction with new business support by the City

This data will be collected in the Community & Business Survey during 2013/14.

E3 - Outcome - A great place to visitObjective Strategy Measures 2012/13 Data

E3.1 Strengthen the capacity and integration of the tourism industry

E3.1.1 Develop partnerships to actively support visitor growth

E3.1.2 Support our heritage tourism hubs for future generations

Number of visitors to the City 2.1 million day-trip visits

$ spend per visitor to the City $135.50 per person

% share of WA visitors Third of Perth day-tripper market

Economic


Table ANumber of people employed per industry typeIndustry Sector Year ending 30 June 2011 Year ending 30 June 2012 Change 2011 to 2012

Agriculture, Forestry and Fishing 1,117 1,105 -11

Mining 1,487 1,539 52

Manufacturing 9,953 11,622 1,669

Electricity, Gas, Water and Waste Services 687 646 -41

Construction 7,362 8,225 863

Wholesale Trade 4,042 4,242 199

Retail Trade 6,688 6,814 126

Accommodation and Food Services 3,043 2,863 -181

Transport, Postal and Warehousing 4,009 4,030 22

Information Media and Telecommunications 583 704 121

Financial and Insurance Services 634 676 43

Rental, Hiring and Real Estate Services 997 1,113 116

Professional, Scientific and Technical Services 2,427 2,336 -91

Administrative and Support Services 1,342 1,361 20

Public Administration and Safety 4,759 5,137 377

Education and Training 3,686 3,912 226

Health Care and Social Assistance 3,950 3,994 44

Arts and Recreation Services 753 572 -181

Other Services 4,236 4,208 -28

Total industries 61,755 65,099 3,345

Source: Economy.id (Modelled data)

Table BNew businesses registrations - 2010/11 and 2011/12 (Actively trading with active ABN and GST status)Industry Sector 2010/11

Business Registrations

(Number)

2011/12

Business Registrations

(Number)

Change

2010/11 to 2011/12

(Number)

Change

2010/11 to 2011/12

(%)

A. Agriculture, Forestry and Fishing 21 15 -6 -28.57%

B. Mining 5 4 -1 -20.00%

C. Manufacturing 38 43 5 13.16%

D. Electricity, Gas, Water and Waste Services 4 2 -2 -50.00%

E. Construction 178 143 -35 -19.66%

F. Wholesale Trade 29 24 -5 -17.24%

G. Retail Trade 60 59 -1 -1.67%

H. Accommodation and Food Services 39 37 -2 -5.13%

I. Transport, Postal and Warehousing 61 63 2 3.28%

J. Information Media and Telecommunications 5 2 -3 -60.00%

K. Financial and Insurance Services 15 14 -1 -6.67%

L. Rental, Hiring and Real Estate Services 62 52 -10 -16.13%

M. Professional, Scientific and Technical Services 83 78 -5 -6.02%

N. Administrative and Support Services 40 33 -7 -17.50%

O. Public Administration and Safety 10 8 -2 -20.00%

P. Education and Training 16 8 -8 -50.00%

Q. Health Care and Social Assistance 21 19 -2 -9.52%

R. Arts and Recreation Services 12 7 -5 -41.67%

S. Other Services 67 57 -10 -14.93%

Totals 766 668 -98 -12.79%

Source: ABR


Table CAnnual turnover ranges by industry division - 2011Industry Sector Zero to

$50k$50k to less than $100k

$100k to less than $200K

$200k to less than $500k

$500k to less than $2m

$2m or more

Total

A. Agriculture, Forestry and Fishing 237 51 68 53 33 18 460

B. Mining 19 9 18 25 0 9 80

C. Manufacturing 109 85 100 140 160 142 736

D. Electricity, Gas, Water and Waste Services

3 6 9 9 6 9 42

E. Construction 276 561 460 376 280 165 2118

F. Wholesale Trade 72 37 47 67 102 119 444

G. Retail Trade 105 80 73 101 146 114 619

H. Accommodation and Food Services 22 51 63 84 83 24 327

I. Transport, Postal and Warehousing 253 204 159 169 43 23 851

J. Information Media and Telecommunications

22 0 9 12 4 0 47

K. Financial and Insurance Services 225 85 68 71 41 4 494

L. Rental, Hiring and Real Estate Services

270 143 156 115 92 40 816

M. Professional, Scientific and Technical Services

232 128 174 149 98 52 833

N. Administrative and Support Services 124 48 75 33 36 21 337

O. Public Administration and Safety 12 6 9 6 3 4 40

P. Education and Training 31 16 18 15 12 6 98

Q. Health Care and Social Assistance 53 28 31 59 34 15 220

R. Arts and Recreation Services 33 27 15 24 18 3 120

S. Other Services 97 100 121 143 97 26 584

Totals 2195 1665 1673 1651 1288 794 9266

Source: ABS

Natural Environment

N1 - Outcome - the environment is protected for future generationsObjective Strategy Measures 2012/13 Data

N1.1 Mitigate the City’s carbon footprint, reducing waste and greenhouse gas production

N1.1.1 Effectively manage resource consumption, including water, energy and non-renewable resources

N1.1.2 Reduce waste through reduction, re-use and recycling of waste products

N1.1.3 Preserve and protect air quality

Greenhouse gas emissions - City Fleet 3694 Tonnes CO2e

Greenhouse gas emissions - City Buildings

6357.63 Tonnes CO2e

City water usage 124,068 kl

City energy usage 12,236,745 kwh

% waste recycled in City of Swan 28%

Average Tonnes waste per pickup 18.11 kg.(Excluding recycling)

N1.2 Adapt to the effects of climate change

N1.2.1 Minimise the impact of extreme weather conditions through emergency management planning

N1.2.2 Implement Policy changes through planning, building, land management and infrastructure

% community satisfaction with City of Swan emergency management


% land in City of Swan compliant with fire management requirements

76%


Built Environment

B1 - Outcome - Community places to live, recreate and workObjective Strategy Measures 2012/13 Data

B1.1 Facilitate and integrate housing options, local services, employment and recreational spaces

B1.1.1 Facilitate diverse, inclusive, housing options

B1.1.2 Align land use and infrastructure planning

B1.1.3 Provide commercial and industrial land aligned to economic need and growth

B1.1.4 Provide appropriate open space to recreate and connect

% population growth 4.44% (ABS, ERP)

Ratio of single and multi dwellings in the City

7.9 : 1

Number of households spending less than 30% of disposable income on mortgage repayments and rent

< 30% on Mortgage: 84.6%

< 30% on Rent: 92.2%

Hectares of land zoned industrial 857.81

% land zoned industrial that has been developed

93.01

B1.2 Build a sense of place through open spaces

B1.2.1 Create and align Place Land Use Plans

% community satisfaction with recreation spaces


Amount of open space per population 0.013 ha open space per person

B2 - Outcome - Infrastructure that meets community need Objective Strategy Measures 2012/13 Data

B2.1 Manage current and future assets and infrastructure

B2.1.1 Continue to improve asset management practices

B2.1.2 Maintain and protect heritage

Asset Sustainability Ratio 0.81

Asset Consumption Ratio 0.64

Asset Renewal Funding Ratio 1.25

% community satisfaction with City assets


Average daily traffic on main arterial roads

West Swan Road 17,476

Lord Street 14,673

Beechboro Road North 29,518

Benara Road 13,784

Marshall Road 11,340

Gnangara Road 24,113

Number of serious traffic accidents 446

Number of fatal traffic accidents 6

N2- Outcome - Biodiversity retention N2.1 Preserve and

protect local ecology and biodiversity of natural ecosystems

N2.1.1 Conserve open spaces, natural vegetation and bushland

% native vegetation in City of Swan 42.2%

N2.2 Reduce impacts on biodiversity

N2.2.1 Protect waterways through appropriate land management practices

N2.2.2 Implement ‘best practice’ in management of ground and surface water

% waterways exceeding ANZECC trigger points (for contamination)

27.7% Total Nitrogen, 11.1% Total Phosphorus, 22.2% pH

Native reserve condition 2% Pristine, 15% Excellent, 17% Very Good, 24% Good, 26% Degraded, 15% Completely Degraded


S1 - Outcome - Accessible services meeting changing community needs Objective Strategy Measures 2012/13 Data

S1.1 Determine service requirements and delivery options in the areas of aged, youth, families and children

S1.1.1 Develop acceptable service levels and service delivery models

S1.1.2 Seek alternative service providers to facilitate appropriate service access such as other agencies, non government organisations and community groups

S1.1.3 Strengthen advocacy role on behalf of our community

Number of participants in local sporting and recreational activities

Leisure Centre Attendances 791,370

Club Members 5,566

% community who feel their community is accepting of people from diverse cultural backgrounds

This data will be collected in the Community & Business Survey during 2013/14

S2 - Outcome - Community health and wellbeing S2.1 Strengthen

Place based access and delivery of services

S2.1.1 Strengthen place based management of services

S2.1.2 Create a sense of place and culture and belonging through inclusive community interaction and participation

S2.1.3 Advocate and continue to strengthen relationships with our diverse cultural community

% community who rate quality of life as average or better


% community who like living in their community


% population registered as library members

39.5%

% community satisfaction with library


Volunteer rates 927

Attendance per 1,000 population at arts and cultural activities

Not reported in this format. To be replaced with a survey based measure

% community satisfaction with services and facilities for youth


% community satisfaction with services and facilities for families


% community satisfaction with services and facilities for seniors


% community satisfaction with services and facilities for people with disabilities


Social

B3 - Outcome - Sustainable transport solutionsB3.1 Advocate

and provide alternative transport

B3.1.1 Lobby and advocate for public transport

B3.1.2 Provide bicycle and pedestrian connections

Kilometres of dedicated walk and cycle trails

31.7km by Developers

3.9km by City

Number of public transport passengers boarding and alighting trains at Midland Station

Midland Station Train Patronage 2012/13

Total Boardings (ON): 1,171,793

Total Alightings (OFF): 1,073,349

(Source: Public Transport Authority)


S2.2 Build a strong sense of community health and safety

S2.2.1 Facilitate improvement of community health and safety

% community satisfaction with safety of their community


Number of crimes (against property and person) per 1,000 people in the City of Swan

39.1

G1 - Outcome - City of Swan is seen as a place to live, work and visit Objective Strategy Measures 2012/13 Data

G1.1 Provide accountable and transparent leadership

G1.1.1 Continue to develop policy framework that guides decision making

G1.1.2 Integrate planning, resources and reporting

G1.1.3 Manage future local government reforms

% community who feel they have an opportunity to vote for a candidate they trust


% community satisfaction with overall performance of the City


% community feeling they have opportunities to participate in planning for the City's future direction


G1.2 Promote the City of Swan as a place to live, work and visit

G1.2.1 Develop successful and collaborative partnerships

G1.2.2 Advocate for infrastructure and access to services

G1.2.3 Promote, advocate and market the City’s profile

% community satisfaction with quality of information about City services


% community satisfaction with the City's advocacy and community representation on key local issues


Number and $ value of relevant grants attracted

20

$6.4 million

G2 - Outcome - Optimise use of City resources G2.1 Improve

capability and capacity

G2.1.1 Strengthen Place based delivery model

G2.1.2 Improve organisational systems

G2.1.3 Strengthen customer service

G2.1.4 Use resources efficiently and effectively

Current Ratio 1.19 : 1

Debt Service Cover Ratio 12.38

Operating Surplus Ratio 0.15

Revenue Coverage Ratio 1.09

% staff turnover rate 10.99%

Australian Business Excellence Framework assessment score


% community satisfaction with City responsiveness to resolving problems and enquiries


Governance


The Swan Valley Visitor Centre, operated by the City of Swan, won its third consecutive gold medal at the WA Tourism Awards. This entitled the centre to entry into the Hall of Fame, an enduring title and tourism’s highest honour in Western Australia.

We have conducted a landmark trial of a new heavy braking system on some of the City’s waste and recycling vehicles. The testing has highlighted a number of benefits, notably lower brake wear, improved safety, and more control and confidence in the braking system. This trial has the potential to bring widespread change to waste fleets across Australia.

The City focused on 12 major capital works projects during 2012-13, including five elements of the Ellenbrook District Open Space. As a rapidly growing community, it is very important we consider what sporting, recreational and community facilities as well as essential infrastructure is needed in our community.

2012-13 was the first year the City offered a 50 per cent discount on memberships at our Leisure Centres to all people 65 years of age or older who are either a resident or ratepayer of the City and either hold a seniors card or are pensioners. This was very popular, with 262 seniors memberships sold and 25 per cent of these were in the first month of its offering. The membership drive is part of our commitment to building a strong, healthy and safe community for people of all ages.

Providing good governance and leadership remain priorities for the City and Council, reflected in the City’s push to recover funds after the Lehman Brothers collapse. The City has been a lead party in legal action and met with some success this year. However, the fight is not over and the City will continue to pursue this matter to ensure Councils and community organisations are able to recover as much money as possible.

I would like to thank all the Councillors for their contribution over the year. Councillors devote a lot of time, often unannounced, to serving the community. Their integrity, professionalism and passion for making the City the best it can be is certainly appreciated.

We have some challenging years ahead, with Local Government reform sure to change the landscape of Councils in the metropolitan area. However, I feel very positive about our future. We are in a strong position to move forward and I look forward to working with the Council, our ratepayers, residents and other stakeholders to forge a prosperous future for our community.

Cr Charlie Zannino Mayor City of Swan

Mayor’s message

2012-13 has been a very busy year for the City of Swan. Our Annual Report details our achievements throughout the year and we are very proud of what we have been able to accomplish. There have been so many highlights, but we are particularly proud of the recognition of excellence and the leadership we have provided.

“There have been so many highlights, but we are particularly proud of the recognition of excellence and the leadership we have provided.”


CEO’s message

2012-13 was the first year for the City operating under its new Strategic Community Plan (SCP). This document drives the City’s direction in the short and long term.

We made a huge effort to consult with our community at each of the stages of developing the plan to ensure we understood their priorities so we can align our work with the needs and aspirations of our rapidly growing and very diverse community. The SCP includes the overall vision for the City and five key result areas of economic, natural environment, built environment, social and governance. In each of these areas we have set objectives and strategies to meet the outcomes desired by our community. In this document, we outline how we fared in achieving these objectives and strategies.

As well as adopting a new SCP, the City also underwent a restructure in the past year. It has been a time of change, but this is aimed at improving our ability to meet the community’s needs. Our restructure has included an increased focus on delivery of services at Place. The City uses the Place Management model to better service our diverse communities.

We are blessed with some beautiful rural regions, thriving industrial areas and historic as well as still developing urban suburbs. Our urban areas also have vastly different demographics and diverse cultural backgrounds. These communities all have different needs and through Place Management we are better able to understand the differences in and needs of our communities. By putting more staff at Place and decentralising we become an organisation that is better in step with its ratepayers and residents.

This is particularly important as the City continues to grow. Our population has reached almost 120,000 residents (an increase of about 15,000 over the past five years) and we now have an operating revenue of $129.7 million (up from $92.1 million in 2008-09). This growth, combined with the sheer size of the City at 1044 km2, means the job of governing the municipality becomes more challenging every year.

I am lucky to have great support from staff from all areas of the City. I would like to thank everyone for their dedication, teamwork and commitment. I would like to make particular mention of my Executive Team, who have a wealth of experience and provide leadership for staff and the community. At the City of Swan, we actively seek to attract staff who are knowledgeable and customer service-focused. We are working on ensuring all staff provide customer service excellence and will continue to focus on this in the coming year.

Michael Foley Chief Executive Officer City of Swan

“It has been a time of change, but this is aimed at improving our ability to meet the community’s needs.”


Five year key summary of statistics2008-09 2009-10 2010-11 2011-12 2012-13

Total number of residents 105,000 111,096 114,560 116,561 119,438

Total number of rateable properties 43,496 44,411 45,774 47,368 48,849

Minimum general residential rate $600 $630 $675 $715 $765

Rates levied (excluding refuse) $56.8m $61.2m $67.7m $75.7m $82.4m

Operating revenue $92.1m $98.4m $107.2m $120.2m $129.7m

Total current assets $21.3m $22.7m $39.7m $59.6m $86.7m

Capital grants revenue $5.7m $9.4m $10.8m $5.7m $11.6m

Operating grants revenue $8.1m $8.4m $8.5m $10.2m $9.8m

Debt servicing ratio 1.76% 1.83% 1.52% 1.69% 1.95%

Debt service cover ratio 11.6% 17.87% 20.17% 20.83% 12.38%

Full-time equivalent staff 545 565 555 589 582

Planning applications received 1,236 1,305 1,271 739* 1,350

Aged/disabled people assisted 1,561 1,549 1,397 1,323 1,323

Building applications received 3,179 3,389 3,620 2,951** 4,062

Licensed dogs registered 7,078 7,090 7,011 7,368 7,675

Waste services provided (weekly) 41,096 42,725 43,907 45,473 47,120

Recycling services provided (fortnightly) 37,409 39,303 40,528 42,088 43,536

Swan Park Leisure Centre attendance 309,870 334,597 352,787 292,646*** 389,289

Altone Park Leisure Centre attendance 281,014 251,060 282,821 282,601 287,236

Ballajura Aquatic Centre attendance 110,961 112,417 117,575 122,428 114,845

Active registered library borrowers 49,119 54,659 52,789 58,517 61,504

Library loans of books and other items 859,589 895,988 845,260 790,492 740,932

Customer service calls received 125,961 131,149 155,356 145,598 142,509

*The City of Swan changed its policy during the 2011-12 financial year to no longer lodge incomplete applications.** The new Building Act came into effect in April 2012, which introduced new classifications for some applications previously categorised as Building Applications.***Swan Park Leisure Centre was closed for three months for renovation works.


Organisational structure at June 30, 2013

CHIEF EXECUTIVE OFFICERMichael Foley

EXECUTIVE MANAGERPLANNING Steven Tan

EXECUTIVE MANAGER PLACE

Mark Bishop

EXECUTIVE MANAGER

PLACEMark Bishop

EXECUTIVE MANAGERPLANNINGSteven Tan

MANAGER Strategic Planning

MANAGER Statutory Planning

MANAGER Health & Building

Services

MANAGER Community Safety

MANAGER Marketing & Public

RelationsMANAGER

Commercial & Economic

Development

MANAGER Leisure Services

MANAGER Lifespan Services

MANAGER Customer, Library

and Visitor Services

CHIEF EXECUTIVE OFFICER

Michael Foley


EXECUTIVE MANAGERCORPORATE

Colin Cameron

EXECUTIVE MANAGEROPERATIONS

Jim Coten

EXECUTIVE MANAGER

CORPORATEColin Cameron

EXECUTIVE MANAGER

OPERATIONSJim Coten

MANAGER Organisational

Planning & Development

MANAGER Asset

Management

MANAGER Construction & Maintenance

MANAGER Facilities

Management

MANAGER Project

Management

MANAGER Human Resources

MANAGER Governance Services

MANAGER Information Services

MANAGER Financial Services

& Rates

MANAGER Fleet & Waste

Services

CHIEF EXECUTIVE OFFICER

Michael Foley


EconomicThriving, sustainable business capacity and growth

Our vision is to be nationally and globally recognised as a great place and strategic location to invest, visit and establish

commercial and business centres. Our objectives include attracting business and investment opportunities, actively supporting

and developing local and new business, and strengthening the capacity and integration of the tourism industry within the City.


Business information and supportDevelopment work is well underway on the City of Swan business website. This will include vital information required for businesses in the City of Swan, both existing operations and new ventures. It is envisaged that this portal will be a ‘one stop shop’ for business, hosting information from external agencies to complement the City’s contributions. The database of knowledge will continue to develop as the site is used. Additionally, every business in the City will be able to advertise their contact details on the Business Directory. By offering this comprehensive local directory, the City will be supporting people to buy local.

Tourism

Adding value through tourismThe City of Swan is home to two significant tourism destinations – the Swan Valley, Western Australia’s oldest and most visited wine region, and the National Trust-listed historic town of Guildford. Visitors to these regions make a significant contribution to the local economy, with about 2.1 million visitors per annum, each with an average spend of $135.50, according to the City’s 2012 Day-tripper Research.

The City has undertaken an extensive review of the advertising and editorial opportunities, both in-flight and on-ground, available to promote the region to domestic and international travellers. This will tie in with the Swan

Planning for the future

Business and economic developmentEndeavours to attract investment to locations throughout the City have proven fruitful during 2012-13. These endeavours have included the attraction of land developments and ongoing meetings with large, global organisations with increasing success.

Strategic planningThe City has continued the development of its commercialisation strategy aimed at reducing our reliance on rates as a revenue source. By pursuing this, we can improve our financial sustainability while easing the burden on ratepayers. As part of the strategy, we have identified strategic and commercial land parcels which can be used to generate alternative revenue sources and property development negotiations have commenced on some parcels of land. The City is also exploring service and infrastructure commercialisation, with a focus on solar farming, signage, sponsorship, and public events.

The review of the Regional Economic Strategy has been completed, as has the City’s Economic Strategy. Together these will provide the City with its strategic direction for business development over the next few years. The City continues to proactively pursue and support businesses for “greenfield”, relocation or expansion projects creating and/or retaining jobs and capital expenditure.


Valley five year Destination Marketing Plan, which will identify strategies to increase the Swan Valley’s international and domestic market share and ensure that the Swan Valley is the number one day-tripper destination in Perth. The City also coordinated and hosted familiarisation tours to build awareness of the Swan Valley’s offerings.

Other marketing initiatives included developing new Swan Valley marketing collateral, including annotated maps of the region, as well as the Guildford Courthouse exhibition, Guildford Heritage Precinct Interpretive Signage Trails, and the Guildford Heritage Precinct Masterplan.

The Swan Valley Cycling Trail interpretive signage has also been replaced, including the trail header located at Stirling Square, to maintain the integrity of the experience which is ranked as one of WA’s Top 50 Trails.

Swan Valley Visitor CentreExceptional customer service is a priority for staff and volunteers at the Swan Valley Visitor Centre. The Visitor Centre aims to encourage longer stays and repeat business in the Swan Valley, providing more opportunities for local businesses to expand their activities and increase employment. The Visitor Centre also manages the leading tourism website www.swanvalley.com.au and the sculpture-park style information bay located on West Swan Road.

The Visitor Centre operates as a welcoming shop front for the entire region and is a leader in visitor servicing. This was recognised in 2012-13 with induction into the WA Tourism Awards Hall of Fame. The Hall of Fame Medal is only awarded to an entrant who receives a gold medal in the same category for three consecutive years and is an enduring title. This is tourism’s highest honour in Western Australia. The City also won its second consecutive Gold Medal in the Local Government category of the Perth Airport Western Australian Tourism Awards. This award recognises the significant efforts of the City to promote and develop tourism in the region.

Increased demand for visitor services has meant the centre continues to grow. So much so that today it operates with the equivalent of four full-time employees and 25 volunteers. The dedicated staff and volunteers are an integral part of the centre’s success.

This year, the centre serviced a record number of more than 63,000 visitors and dealt with 300,000 telephone, email and website enquiries. It provided information services, booking facilities and was a starting point for many exciting tourism activities.

The City is proud of the Swan Valley Visitor Centre’s achievements in visitor servicing and tourism and looks forward to providing exceptional visitor experiences into the future.

Swan Valley websiteDuring 2012-13, the City also progressed phase two of the Swan Valley website. Rollout of this second phase will include enhanced Bookeasy pages (lifting the profile of accommodation and tour operators on the site and therefore generating more online bookings), My Itinerary and Suggested Itineraries. Bookeasy integration enables visitors to easily search for and book accommodation and tours for their next visit to the Swan Valley.

With the introduction of My Itinerary, visitors will be able to effectively plan their visit to the region through this trip building tool. The customised trip planner will save visitors time by enabling them to create a customised itinerary. Suggested Itineraries will offer visitors a choice of themed Swan Valley experiences.


The City’s Swan Valley Visitor Centre won its third consecutive gold medal at the WA Tourism Awards, earning entry into the Hall of Fame. Mayor, Charlie Zannino, is pictured with both the awards.

Natural EnvironmentEnvironmentally sustainable leadership and stewardship

Our vision is for the City to lead by example, and respond to the changing global climate and its impact on the environment.

Our objectives include to mitigate the City’s carbon footprint through reducing waste and greenhouse gas production, to adapt

to the effects of climate change, to preserve and protect local ecology and the biodiversity of natural ecosystems, and to reduce

the adverse impacts on biodiversity.


and lifespan, and hence operating costs, of the truck brakes. The SIBS system has been used extensively over the past 10 years in commercial applications within the Australian mining industry but never previously tested in waste management vehicles. While the prime advantages are the significantly lower brake wear and improved safety, the testing has highlighted a number of other benefits with the new SIBS system, notably more control and confidence in the braking system.

A large number of the City’s heavy vehicle operators have now completed a Certificate IV in Transport as part of a national program called Clean Run. Through this program, drivers are trained to operate vehicles in a safer and more fuel efficient manner.

The City has also focused on reducing the number of crashes and incidents involving City vehicles. This has met with some success, with 79 incidents in 2012-13, down from 84 in the previous year and 96 in 2010-11.

Construction has started on the City’s new workshop. This will provide for efficient, modern servicing and maintenance of the City’s growing fleet, reducing vehicle downtime and costs. The facility is scheduled to be operational in February 2014.

The City has also commissioned a new, 65,000 litre, diesel, above-ground fuelling facility, replacing the 40-year old underground fuel tanks. This provides faster fuelling times and alleviates any risks associated with the ageing underground tanks.

Leading by example

Sustainable Environment StrategyThe Sustainable Environment Strategy contains the City’s environmental targets across seven key focus areas and the actions the City will undertake to meet these targets. This strategy was adopted by Council in March 2012 and the City has continued the implementation of many actions arising from this strategy during 2012-13. Some examples of this activity include development of an environmental education program to engage our community and staff, and a Water Action Plan which documents our quality and efficiency targets. As a result of this strategy, the City has developed a Carbon Inventory for 2011-12, providing a baseline assessment for our carbon reduction initiatives. These activities provide a solid foundation for the ongoing development of the City’s environmental approach in coming years.

Our fleetThe City’s fleet has grown to 790 vehicles, plant and equipment. These range from small passenger vehicles to large waste and recycling trucks. The City has increased its focus on sustainability, and the new waste and recycling vehicles purchased over the past few years have a nine per cent lower fuel consumption. This helps to minimise the City’s fuel usage and the cost of running the fleet.

The City conducted a landmark trial of a new heavy braking system during 2012-13. The trial included fitting two City waste and recycling vehicles with the Sealed Integrated Braking System (SIBS) with the aim of improving the safety

City Mayor, Charlie Zannino, inspects the new brakes being trialled in two waste and recycling vehicles.


Waste services

CollectionsThe City collected about 38,000 tonnes of household waste from residential and commercial properties, plus another 6,000 tonnes from its verge collections, during 2012-13. An additional 1,509 new properties received waste and recycling services this financial year, bringing the total of services to 47,120. The City’s litter control plus park and street collections amounted to an additional 560 tonnes of waste.

The City also collected about 10,000 tonnes of household recycling, which was sent for processing, and about 3,500 tonnes of bulk verge material. A large portion of the bulk verge material was green waste, which is woodchipped and mulched then reused throughout the City in parks and public open space.

Reducing the amount of waste going to landfill is a priority for the City, and residents were offered additional opportunities for recycling through six recyclable goods drop off days at Jack Williamson Reserve in Middle Swan throughout 2012-13. These events give residents the opportunity to bring bulk recyclable materials to a central location where the materials are able to be sorted and sent for recycling. More than 200 residents used this service at each of the six events.

Material transfer stationThe City has purchased a property in Stock West Road in Bullsbrook. A material transfer station will be established on the land, allowing bulk material to be brought in for sorting and recycling. This will be a valuable addition to the City’s waste services in an area where population growth is expected. The facility is expected be operational in late 2013.


Measures are also being taken to reduce loss in water which has already been heated. As heated pool water evaporates, water levels are replaced with cold water which in turns needs to be heated to maintain a consistent pool temperature. To prevent the continued heating of water overnight, pool blankets will be used to reduce the level of evaporation. As well as reducing energy consumption, this measure also cuts water consumption, reducing costs and improving the facility’s environmental footprint.

Improving water efficiency was a particular focus for Swan Park Leisure Centre this year. A Water Efficiency Management Plan was developed and implemented. As a result, the centre received a gold award in the Water Corporation’s Water Efficiency Management Plan recognition scheme.

Emergency planning

Bushfire Risk Management PlanThe City commenced work on developing a strategic Bushfire Risk Management Plan (BRMP) which will identify issues affecting bushfire prone rural land. It will also identify City assets located within communities at risk of bushfire, with risks assessed and specific strategies developed to deal with those risks. The knowledge and opinions of local people about bushfires, important assets and potential risks has been a focal point in the development of the BRMP. Mapping of fire prone areas has also commenced and this will aid in planning and preparing for emergency response.

Emergency managementThe City has continued to enhance its emergency management arrangements, which were tested during significant events in 2012-13. The City provided response and recovery activities to affected communities, specifically in the Bullsbrook, Shady Hills and The Vines areas as a result of significant bushfires in these areas in February 2013. The City’s involvement included support activities during these incidents by the City Volunteer Fire Brigades, City staff and community volunteers. The impact of these fires was reduced by the preparatory work which had occurred through education initiatives in these local communities and through enforcement action taken as part of the fire hazard inspection process.

Embracing green technology

Monitoring equipmentAs we continue to upgrade our ageing facilities, we are able to seize the opportunity to reduce our carbon footprint. During refurbishments, infrastructure is installed which allows us to identify how and where electricity is used at City facilities. Through the installation of monitoring equipment at pavilions, community centres and other buildings, as well as for services such as flood lighting at sports ovals, City staff are able to assess the operating performance of each facility. From these results, energy efficiency improvements are identified and implemented to control energy wastage, which also reduces facility costs.

New buildingsThe City also recognises the unique opportunity to incorporate energy and water saving initiatives into new facilities being built to service the community. Water harvesting and recycling initiatives have been incorporated into the design of the Percy Cullen Oval Pavilion and Aveley Community Centre. In addition to architectural design with environmental sustainable principles, these buildings feature the use of newer building methods and construction materials that complement the natural surroundings to increase their environmental performance and sustainability.

Existing facilitiesThe City’s leisure and aquatic centres are its biggest users of resources. The City is continually considering new measures to reduce the environmental impact of providing such important community infrastructure. The use of natural gas-fired boilers as the primary energy source for water heating has been in the spotlight during 2012-13 and planning is finalised for the switch to solar hot water systems. Work has started on the installation of these systems - with one already operating at Altone Park Leisure Centre - and this is expected to be completed in 2013-14. By installing solar hot water systems to these centres, the City is able to reduce its reliance on natural gas consumption, thereby reducing each facility’s carbon footprint and energy costs.

Water harvesting and recycling initiatives have been incorporated into the design of the Percy Cullen Pavilion.


Preserving natural ecosystems

Working with the communityThe conservation of public open spaces and natural habitat is important to our community and each year City staff plan and implement various activities towards this aim. Some of the key community programs offered throughout the year included Beyond Gardens and worm farm workshops. As well as offering practical tips for residents’ own gardens, these help to give attendees a greater understanding of the importance of protecting our natural ecosystems, and what they can do as individuals. More than 200 residents attended the Beyond Gardens sessions which provided unbiased and non-commercial advice on environmentally sensitive gardening practices. As part of these workshops, the City has worked with the Water Corporation, Beyond Gardens team and local residents to give away over 15 verge makeovers. During a makeover, lawn verges are replaced with native plants, saving the resident water, time and money and improving the outlook for native flora and fauna.

Great work has been done at Emu Lake in Ballajura over the past few years, bringing it back to a healthy water body and surrounding ecosystem. The lake was experiencing algal blooms, which were damaging to its ecosystem. The City has been working with various agencies and community groups over the years to restore Emu Lake to a safe haven for the area’s native flora and fauna. A major concern was the nutrients entering the lake as runoff from nearby gardens and from the stormwater system. To combat the increase of nutrients in the lake, the City of Swan has undertaken a range of remediation works, including installation of gross pollution traps on all 11 storm water inlets, establishing 40 floating island wetlands planted with native rushes and sedges, and two in-lake clay filtration systems. Total phosphorus, the main nutrient we targeted because of its contribution to the algal blooms, has reduced by well over 50 per cent since December 2010.

Bushland preservationTo combat the degradation occurring within some of the City’s natural areas through uncontrolled access, the City continued its Bushland Preservation project. This project involved the fencing of five bush reserves with rural style ring-lock fencing. Pedestrian gates were installed to allow access for those wishing to enjoy these bushland areas. To complement the fencing, signage was also installed with the aim of increasing community awareness, and to encourage appropriate human behaviour in regards to natural areas.

River foreshoreSections of the Swan River foreshore in Viveash were stabilised as part of the staged development of the Swan Regional Riverside Park. Works were undertaken on two sections of the foreshore, with funding of $173,500 from the Swan River Trust’s Riverbank Grants Scheme. A 65 metre section of the foreshore at the western end of Reg Bond Reserve, known as the ‘Headland’, which was severely eroded, was rehabilitated. The other rehabilitated area was an 82 metre section of moderate erosion at the Bush Forever site opposite Caversham House. The City took an innovative approach to control the erosion at the Bush Forever site, using large woody debris. This is the first time this approach has been used in the park as a method of foreshore stabilisation. These logs will play an important role in protecting the riverbank and providing habitat for fish, birds and other aquatic life. Large boulders, geo-fabric and coir logs were used for erosion control works at both locations while native rushes, sedges, trees and shrubs have been planted to protect the foreshore into the future. City and Trust staff worked together to develop the foreshore erosion control plans, which will be constantly reviewed and improved where possible.

Ballajura Ward Councillor, Mel Congerton, with information on measures to reduce algal blooms and restore the health of Emu Lake.


Built EnvironmentDiverse, connected, sustainable Places

Our vision is for a City that leads the State in creating sustainable communities by providing diverse and connected Places, with a mix of housing options for our growing and diverse population,

and infrastructure that meets our community’s needs. Our objectives include facilitating and integrating housing

options, local services, employment and recreation spaces, building a sense of place through open spaces, managing the

current and future assets and infrastructure, and advocating and providing alternative transport options.


EDOS Northern Playing FieldsOnce completed, these fields will host cricket and football at both the junior and senior level. Construction works are well progressed, with the electrical component complete and installation of the irrigation system 80 per cent finished. The fields are expected to be open by the end of 2013.

EDOS Northern Community BuildingThis building will service the adjacent playing fields, while also catering for the community through the provision of meeting and function space. Design works are in their final stages and construction is scheduled to commence late in 2013, with completion anticipated for late 2014.

EDOS Southern Playing FieldsPreliminary designs have been completed for the site that will include four synthetic playing fields catering to soccer and touch rugby, sports floodlighting, dual use pathways, a playground, viewing area and car parking. The City was successful in obtaining $1.5 million in funding towards this project from the Department of Sports and Recreation through the Community Sports and Recreation Facility Fund grants scheme. Expressions of Interest have been advertised to complete the works, with construction to start in 2013-14.

EDOS Southern Sports PavilionA preliminary concept design has been completed for the sports pavilion which will service the Southern Playing Fields.

A Request for Tender for design and superintendency was advertised and is expected to be awarded in August 2013. The City was successful in obtaining $500,000 in funding from the Department of Sports and Recreation through the Community Sports and Recreation Facility Fund grants scheme.

Ellenbrook Recreation CentrePreliminary concepts have been prepared for use in lobbying State and Federal Government for funding contributions. With the project still at the concept stage, planning work is being undertaken to align the project cost with anticipated available funding. The centre is intended to be a multi-purpose sport, recreation and arts facility meeting the needs of this growing community.

Aveley Community BuildingThe Aveley Community Building will provide junior sporting amenities to support the junior playing field, as well as a function hall and community meeting spaces. New carparking and landscaping will be added to the existing facilities at the Aveley Oval. Construction of this project is envisaged to be completed mid August 2013.

Swan City Youth CentreThe City is planning a new, purpose-built facility to house the Swan City Youth Service, Midland Headspace and complementary services. Design work is scheduled for completion by September 2013. This allows for the project to enter the tender documentation stage for construction.

Major projects

The City provides important sporting, recreational and community facilities as well as essential infrastructure for residents, businesses and other stakeholders throughout the municipality. The City undertook 12 major capital works projects during 2012-13, including five elements of the Ellenbrook District Open Space (EDOS). We also celebrated the official opening of some projects completed during 2011-12, including

The new Aveley Community Building. Photograph courtesy Site Architecture Studio


the Woodbridge All Abilities Playspace. More than 100 people of all ages explored this park during the Community Engagement Celebration. This playspace has been designed to inspire creative, engaging and physical play. Much of the inspiration for its design has been drawn from the surrounding areas, including the people, plants, animals, culture and history of the Swan River.

Charlotte’s Vineyard Sports PavilionWhen finalised, this new facility will provide change rooms, toilets and store rooms for sporting clubs which use the associated playing fields. Construction is due to start early in the 2013-14 financial year and is expected to take about eight months. Once the new facility is operational, the existing building on this site will be demolished. This project will be staged to ensure minimum disruptions and continuous access to current facilities for user groups.

Percy Cullen PavilionConstruction of the new building and the upgrade of the existing pavilion are nearing completion, with internal fit-out expected to be complete before the end of 2013. This will provide the community of Gidgegannup with a modern, practical facility able to meet the needs of the community now and into the future.

Gnangara Road (Lord Street to Drumpellier Drive)The City has upgraded this intersection to a standard dual carriageway, including the installation of traffic lights, median strips and kerbing. Traffic was still travelling along Gnangara Road throughout the construction, but was diverted off Drumpellier during key stages. The project works were finished and opened for full traffic use in December 2012.

The new Percy Cullen Pavilion.Photograph by Trasko Industrial Photographics, courtesy of Coniglio Ainsworth Architects

Hazelmere Industrial InfrastructureDuring 2012-13, the City completed the upgrade of Bushmead Road and construction of drainage from Central Avenue to Stirling Crescent. Line marking is all that is needed to finalise this project. This is part of a much larger project which will see the installation of significant infrastructure in the Hazelmere area. Design work is underway for the next stage of the project which is the road upgrade and drainage construction from Stirling Crescent to Military Road.

City GatewaysThe main entrances, or gateways, into the City are an important first impression. City Gateways is an ongoing project to improve the amenity of these areas.

Great Eastern Highway, Midland: A new surface to the car park, refreshed paving and planting have been key elements of this project, which welcomes travellers to the region’s strategic centre of Midland.

Great Northern Highway, Bishop Road to Reid/Roe Highway intersection: Due to the heavy traffic on this road, it was decided to carry out these works at night. Works included underground service location, boxing out, brick paving, concreting, planting and mulching.

James Street, Guildford: In 2012-13, preparation activities, including design work, approvals and public consultation were completed in preparation for construction to begin in 2013-14.


Building approvals

New Building ActThis was the first full year operating under the new Building Act. This legislation introduced prescribed timeframes of 10 days and 25 days for processing of certified and uncertified applications respectively. The City largely met these targets, with average times of eight days for certified applications and 19 days for uncertified. During peak periods, where there was potential for the timeframe to be exceeded, the City proactively liaised with applicants to prioritise applications.

The City issued more than 3,500 building permits during the financial year and revenue from building permits was just over $1.5 million. All building permits are now processed electronically, leading to faster delivery of permit documentation to builders.

Electronic lodgementThe City entered a new phase in electronic lodgement, with continued investment in the ICON suite of products. ICON Lodge was implemented on July 1, 2012, and is a key part of the City’s journey toward improved efficiencies through electronic building application handling and processing.

Strategic planning

Local Planning StrategyThe Local Planning Strategy is the overarching land use planning document which will facilitate the City’s decision making over the next 10 to 15 years. It sets out the long

term planning directions for the City, incorporates State and Regional strategies and policies, and provides the rationale for the zones and other provisions to be included in a new Local Planning Scheme or reviews of the Scheme.

The Local Planning Strategy encompasses eight key areas including: housing, commercial/retail, rural planning, industrial land use, transport planning, environmental planning, community facilities and Public Open Space planning, and infrastructure planning. The draft strategy has been presented to Council and has been forwarded to the Western Australian Planning Commission (WAPC) seeking consent to advertise the strategy for public comment.

Transport StrategyThe Transport Strategy is one of the sub strategies under the Local Planning Strategy and will be prepared under the WAPC’s guidelines for preparation of integrated transport plans. The purpose of the Transport Strategy is to review the transportation needs within the City, and to identify issues and deficiencies in the existing network as a result of the impact of urban growth and industrial development. It will also provide recommendations addressing the issues and deficiencies by means of both engineering and planning solutions. This strategy will support the City’s decision making until 2031. The initial component of the study, the transport assessment, was available from mid-2013 and this will lead to a strategy that can be progressively implemented.

Urban Housing Strategy (UHS)The UHS provides a strategic approach to support infill development and increase the diversity of housing opportunities and affordability for residents throughout the City. The UHS is currently under consideration by the WAPC and the associated Local Planning Scheme amendments have been initiated by Council.


Public Access Way StrategyThis strategy addresses development issues and sets policy standards for development of land adjacent to Rights of Way (ROWs) and Public Access Ways (PAWs) throughout the City. The strategy seeks to review existing ROWs and PAWs, which may result in widening of roads or closures. As identified in the UHS, this strategy will facilitate lots that are adjacent to PAWs to be developed in conjunction with the PAWs or ROWs widening. It is expected that the strategy will be released for public comment in early 2014.

Bellevue East Land Use Study (BELUS)In response to concerns raised by the community, the City has carried out a comprehensive review of land zoning and uses in the eastern residential portion of Bellevue. The BELUS report offers recommendations to ease identified land use conflicts and stimulate development in the area. These recommendations include landscaping improvements, traffic management proposals and proposed zoning changes. With all phases of public consultation complete, the study has been adopted by Council and appropriate Scheme amendments will now be prepared in 2014 to implement the recommendations.

Local Rural Planning StrategyThe Local Rural Planning Strategy is a consolidated land use planning instrument that will guide land use and development in rural areas. It will become an important component of the City’s Local Planning Strategy which will, in turn, underpin revisions to the Local Planning Scheme.

The Local Rural Planning Strategy encompasses a review of the City’s current planning framework in rural areas and incorporates recent revisions to the State’s planning framework, bushfire planning requirements, agricultural land suitability and capability, environmental considerations and Place planning objectives. The first component, a rural land capability assessment and review of bushfire planning at the strategic level, has been completed and it is expected that the draft strategy will be ready for comment in the first quarter of 2014.

Bullsbrook Townsite Land Use Master PlanBullsbrook is forecast to grow from a population of 5,614 in 2013 to 17,148 by 2031, and 26,483 by 2036. The Master Plan is a strategy for future development in the locality that will provide guidance and advocacy for development of the townsite to 2031 and beyond. Development through this strategy works towards meeting the aims of the State Government, as outlined in its “Directions 2031 and Beyond” document, of providing for anticipated population growth in a liveable city which is sustainable, vibrant and prosperous. The final draft of the plan is currently being prepared for consideration by Council before it is released for public comment.

Midland Activity Centre Structure PlanThe Midland Activity Centre Structure Plan is a strategy for the development of the area bounded by Amherst and Morrison Roads in the west, Lloyd Street to the east, north to Morrison Road and south to the Helena River. The plan defines the long term future form of Midland centre and identifies the proposed distribution and intensity of activity. It provides a mechanism for implementation, by informing changes to the City’s statutory and policy provisions. Importantly, it will provide landowners and investors with certainty regarding development opportunities in Midland centre. The Draft Activity Centre Structure Plan was advertised for public comment earlier this year. A number of submissions have been received and these will be given detailed consideration in finalising the plan.

Heritage Strategic Plan 2013The City’s Heritage Strategic Plan outlines strategies and actions that will enable City-wide coordination on heritage management. It will provide clarity on both the City’s commitment and approach to the management of its heritage assets. The plan identifies positive heritage measures already employed by the City while also identifying and prioritising work to be done in the future. Provisions in the plan will also enable the City to appropriately manage and monitor the heritage assets of the community.

Asset Management Plans (AMPs)The City is home to a diverse and growing population. Providing infrastructure that meets the needs of emerging communities, while ensuring infrastructure in established communities is renewed as needed, is an ongoing challenge for the City. To assist in this, the City completed AMPs in June 2012. During development of the AMPs, many practices and processes were identified as needing improvement. Each AMP has its own improvement plan, and key improvement opportunities have been included in the 2012-13 business planning. At June 30, 2013, 50.55 of 59 improvements (86 per cent) had been completed. A complete review of the AMPs is carried out every two years.

SubdivisionsThe majority of the City’s population growth is due to urban developments on greenfield sites. During the 2012-13 financial year, the total value of in-kind contributions from subdivisions was $23.8 million. This figure is second only to 2010-11, when the total value of in-kind contributions was $31.6 million.

Traffic managementWork was undertaken on four Local Area Traffic Management Plans during 2012-13. The Henley Brook and Hazelmere plans have been completed; the Malaga plan is 90 per cent complete and the Guildford plan is 40 per cent complete.


Managing our assets

BuildingsThe City has a comprehensive renewal program for its building assets. Historically, our refurbishments focused on the renewal of individual elements of a facility but we identified that a more holistic approach, incorporating full refurbishment, would provide better value for money. Now all aspects of the building are considered, including electrical switchboards, air conditioners, kitchens, floor coverings, painting and toilet facilities. This leaves our community with a more valued, and therefore better used, facility.

The Altone Pavilion, Alice Daveron Centre and Maguire Oval Pavilion in Beechboro were the first three projects identified under this new approach. The City received Federal Government funding for the works at Altone Pavilion, and funded the remaining projects from municipal funds. Each of the upgrades included refurbishment of the club rooms and renovation of the kitchen facilities. Additional storage and improved lighting were also featured in each project. A significant refurbishment was also undertaken at Baskerville Memorial Hall to ensure the building meets the community needs now and into the future. A new pavilion is being built at Percy Cullen Oval and this is complemented by the renewal of the existing building on the site.

The City’s heritage assets are highly valued by residents and ratepayers. During 2012-13, the City has invested in one of Midland’s landmark buildings, replacing the roof on the historic Midland Junction Arts Centre. These are important works to ensure the weatherproofing of an important asset. For the safety of patrons, the centre was closed during this period.

Asset summary

Asset type Quantity Current replacement value %

1. Land assets $188,206,618 9%

Freehold land parcels 380

Crown Reserve parcels 608

2. Building assets 204 buildings $253,100,000 12%

3. Parks and streetscaping 395Ha $109,812,079 5%

Active reserves 41

Passive reserves 197

Verges/medians 324

Roundabouts 120

Roundabouts/islands 100

4. Natural resource management

$491,212,150 23%

Nature reserves 44 (717.5Ha)

Foreshore reserve 73 (467Ha)

5. Roads 2430 roads (1329km) $640,400,000 31%

6. Paths 988,602m2 (553km) $52,900,000 3%

7. Bridges $66,217,657 3%

Boardwalks 14

Footbridges 38

Canoe ramp, pontoons 6

Road bridges 32

Underpasses 4

8. Drainage ~ 25,366 objects (602km pipe) $278,600,000 13%

9. Carparks $15,989,117 1%

Off street carparks 108

On street parking zones 429

TOTAL $2,096,437,621 100%


Sustainable transport

Public transportThere are rapidly growing residential communities in Ellenbrook and throughout the Urban Growth Corridor which need access to new and expanding public transport options. The City is also home to some of Western Australia’s oldest suburbs and some infrastructure in the established suburbs no longer meets the needs of the modern, more populous community.

The City holds regular meetings with local Members of Parliament, at a State and National level, where important priorities can be raised. City representatives travel to Canberra each year to meet with key Ministers and Shadow Ministers where we outline our advocacy priorities. In 2013, meetings have also been held with candidates for the upcoming Federal Election.

Public transport priorities raised have included a Rapid Bus Transit system to Ellenbrook, upgrades to, and relocation of, the Midland Train Station plus dual use paths. The population of Ellenbrook has ballooned to more than 27,000 and this is predicted to almost double by 2036. The City has been advocating for improved access to public transport in this area, with connections through the Urban Growth Corridor to service residents in this area, too. Opened in 1968, the Midland Train Station and Bus Interchange is a vital

connection to Perth city and beyond for residents of the City of Swan and surrounding areas. The City is advocating for a new station and interchange to be built on the site of the original Midland Junction Station, on the corner of Cale Street and Railway Parade.

Cycle strategyThe CycleConnect Strategy, supporting cycling to become a safe and viable form of transport, is part of the City’s over-arching Sustainable Environment Strategy. The primary purpose of this strategy is to provide the strategic direction for the future provision of cycle facilities in all areas of the City. It identifies a range of measures to help meet the needs of cyclists in and through the City. The City held a community consultation period in late 2012 to receive feedback on the strategy and ensure it is aligned with the community’s vision.

The strategy will guide the provision of suitable infrastructure to support cycling as a viable transport and recreation choice in the City of Swan. There are many benefits of cycling, to the individual and the community. As well as the obvious health benefits of the exercise, cycling saves a commuter money, reduces congestion on the roads and in carparks, does not produce harmful emissions, and increases opportunities for passive surveillance, adding to the safety of the neighbourhood.


SocialConnected, safe, inclusive

Our vision is to strengthen our Place based approach, allowing us to build on the uniqueness and diversity of culture and age

while providing local services within safe, central hubs and central locations across identified Places. Our objectives include

determining service requirements and delivery options in the areas of aged, youth, families and children, strengthening our Place

based access and delivery of services, and building a strong sense of community health and safety.

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Sport and recreation

Leisure centresAttendances at the City’s leisure centres increased in 2012-13. Swan Park Leisure Centre welcomed 389,289 patrons, while 287,236 people used the Altone Park Leisure Centre, 114,845 swam at the Ballajura Aquatic Centre, and 64,128 visited Midland Sports Complex. This is a total of 855,498 patrons at the City’s facilities. Ballajura Aquatic reached its goal of 100 members and has set a new target of 150 members. Altone Park also hit its membership goal of 800 members, and has set a new target of 1,000. Swan Park reached its goal of 800 so early the goal was updated to 1,000, which was also surpassed.

From July 1, 2012, a discount of 50 per cent was offered to all people 65 years of age or older who are either a resident or ratepayer of the City of Swan and either hold a seniors card or are pensioners. The discount on memberships was available at Swan Park and Altone Park Leisure Centres as well as Ballajura Aquatic Centre. This was well received and the impact was immediate, with 262 seniors memberships sold across all centres during the year and 66 (25 per cent) of these in July alone. These were a combination of membership types, ie one, three, six and 12 month memberships, sold to a mixture of existing and new members. Seniors memberships contributed $44,535 towards the income of these centres.

A range of new initiatives designed to entice more people to the City’s leisure centres, and cater for a more diverse range of users, were introduced in 2012-13. These included two very successful aquatic discos, a ‘30 days for $30’ promotion, the relaunch of personal training, Konga group fitness classes, and the Ageing Disgracefully seminar, which attracted a crowd of more than 400 people. The latter was part of the Feeling Fabulous series of Be Active events, all of which had vastly increased attendance. Community bowls re-started at Midland Sports Centre and specialised training programs for school children and police officers were introduced at Swan Park. Record numbers took part in the Swim to Rotto

challenge at each centre this year. The annual Bike in the Valley event also attracted a record crowd this year, with 410 people of all ages turning out. This is almost double the previous record of 230.

To ensure the facilities continue to meet community needs, some improvements were made. These included a new room for Spin classes at Altone Park, and new flooring laid in the gym at Altone Park, the kiosks at Altone Park and Ballajura Aquatic, and the function room and members bar at Midland Sports Centre.

Sports groundsThe City provides local and district level facilities for a range of organised sports. There are 90 sporting clubs in the City of Swan, catering for junior to senior sports throughout the year. The City provides 65 hectares of active sports grounds which are well used for training and matches.

Blue Ribbon ClubsThe first Blue Ribbon Clubs Conference was held in June 2013. Blue Ribbon Clubs is a joint initiative of the Cities of Swan and Bayswater which aims to help clubs become more healthy and sustainable through an incentive-based accreditation scheme. All local sporting clubs, plus service and community clubs were able to attend the conference, which had 42 attendees from City of Swan and Bayswater clubs. Eight workshops were held at this conference.

KidSportThe City was a frontline contact point for the State Government’s KidSport program. We issued 973 vouchers to 954 unique participants through this scheme; this is equivalent to $166,982 paid to sporting groups throughout the City so that children can participate in organised sports. Of the 973 vouchers issued, 449 of these were for children who were not previously registered with a club. Football (AFL) and netball were the most popular sports.


Seniors were keen to sign up for a 50 per cent discount, offered at City of Swan leisure centres for the first time in 2012-13.

An inclusive community

Disability Access and Inclusion Plan (DAIP)The City’s current DAIP was adopted by Council in 2012 and various initiatives have been implemented in 2012-13 to support the plan’s outcomes. An accessibility audit was conducted for all libraries using Disability Services Commission standards. Where possible, relevant changes have been made including adjusting shelves and tables heights, and widening spaces between shelves to ensure they are wheelchair accessible.

The City provided funding for the Live it up Festival, an event which was held at the Woodbridge All Abilities Playspace. The event, organised by Workpower, provided various activities and opportunities for children with disabilities and their families to connect with different service providers.

DAIP training sessions were provided for City of Swan staff. A session was organised for the City’s DAIP Committee and this was facilitated by the Disability Services Commission. The City also held Disability Awareness training sessions which were facilitated by an independent disability consultant. Based on the feedback received from participants, future training sessions are being planned.

Diverse communitiesThe City does a lot of work to support the Culturally and Linguistically Diverse (CaLD) communities in the municipality. One pot cooking events, facilitated by the City and led by community members, are an opportunity to share cultural insights through the shared joy of cooking. The City also facilitates the Metropolitan Migrant Resource Centre to work from the Altone Place Office, with a large CaLD community in Altone Place able to take advantage of important services in the region.

In 2012-13, the City was awarded a grant from the Department of Immigration and Citizenship of $50,000 for the ‘One City, Diverse Cultures’ project. This project aims to address social isolation and tension in CaLD communities across the City through building links and providing increased opportunities for cross cultural interaction. The City has one of the highest rates in Western Australia for the number of people who are born overseas and it is clear that this additional support is needed City-wide. This project will commence in the 2013-14 financial year.

The City supported local community members working towards the formation of a Noongar Institute Community Group. This initiative was sparked by community Elders and families to promote a collaborative approach to education and training. The City partnered with Landgate to present a NAIDOC Week celebration in Midland and supported other events in Altone and Ballajura as well as providing support for a Derbal Yerrigan Family Week event.


Our young people

Swan Family ConnectEstablished in April 2012, Swan Family Connect is a new service which connects families with their local community services and activities. Based in the Altone Park, Bullsbrook and Ellenbrook Libraries, Swan Family Connect is a free information and referral service for families with children under 12 years. The service provides information and referral services and activities; opportunities for parents and carers to access parenting information; and opportunities for children and families to participate in early literacy and learning activities. Information displays with free brochures and flyers are available at all City libraries. Swan Family Connect has hosted a number of successful events this past year that have seen families and children interacting, learning and having fun. Some highlights include launch events in Ellenbrook and Bullsbrook, Altone Park’s and Ellenbrook’s Children’s Week art workshop, Early Years Directory launches in Ellenbrook and Bullsbrook, and Parenting WA workshops at Altone Park. This service is funded by Communities for Children Plus, an initiative of the Department of Families, Housing, Community Services and Indigenous Affairs.

Communities for Children PlusThe City is a key member of Communities for Children Plus (CfC+) that provides activities for children and families in the Altone, Ellenbrook and Midland Place Areas and the locality of Bullsbrook. The City is represented on the committee that makes decisions regarding the activities that are implemented in each area, the funding allocations and the strategic direction of the CfC+ site. CfC+ is an initiative of the Department of Families, Housing, Community Services and Indigenous Affairs and is committed to the Swan region until the end of June 2014.

Midland HeadspaceThe City has been participating in a consortium of agencies which include mental health, allied health, drug and alcohol, vocational and support services to secure and establish the Midland Headspace. This service has commenced operations from an interim centre on Sayer Street while the City completes design works for a purpose-built facility to be shared with the Swan City Youth Service and other allied services. Representatives from the consortium meet monthly to discuss strategic direction, processes, and effective partnership delivery.

Swan NESTThe City has partnered with Rise Community Services on a project to strengthen the youth sector across Swan. Known as the Swan Network, Engagement Strategy and Training (NEST) project, it has led to the development of a North East Youth Organisations Network group. A Model of Operation, Strategic Plan for 2012-15, Operational Plan 2013, Terms of Reference, Coordination Agreement and Member Acknowledgement Brochure have been produced to guide this group. NEST has also provided input towards planning for the Youth Summit and the Workroom series training sessions.

Youth Friendly CommunityA plan has been prepared for the Ellenbrook Youth Friendly Community project, proposing to bring additional agencies into the area to address issues around antisocial and risk taking behaviour in young people. The City received positive feedback on the plan during an initial meeting with primary stakeholders. Lobbying efforts to date have targeted State Government Ministers and Shadow Ministers as well as local Members of Parliament.

Swan Early Years GroupsThe City supports and facilitates Early Years Groups in three key locations: Altone, Ellenbrook and Midland. These groups bring together professionals and community members with expertise in early childhood health, well-being and education to work collaboratively to help improve life outcomes for children and their families.

The Midland Early Years Action Group is currently working on professional development and early intervention priorities identified in its 2012 planning sessions. The Ellenbrook Early Years Working Group has recently revamped its local Early Years Directory. The Altone Early Years Network re-established in 2012 and has a current membership of 38. There have also been some initial discussions with agencies servicing the Bullsbrook community to establish a Bullsbrook Family Support Network; a Bullsbrook Early Years Directory was launched in June 2013.

Connecting Community through the AEDIWith the second release of national Australian Early Development Index (AEDI) results, the City committed to the continuation of the Connecting Community through the AEDI project that developed the Brain Box toolkit. The Brain Box has been an interactive platform to initiate conversations with communities about early childhood development particularly early brain development, the AEDI, and the significant role families, services, communities and government play in influencing a child’s development in the first few years of life. More than 70 Brain Boxes have been distributed to early childhood and family services, who have incorporated the information and visual aids into their daily practices. An evaluation of the project received a positive response from both service providers and families who have had contact with the toolkit. In 2012, the project was published as a WA Local Champions Story for the region on the AEDI website.


Libraries

eLibraryThe newest branch of the City of Swan library service, eLibrary, has proven to be a tremendous success. The eLibrary is a virtual branch with a wide range of electronic resources available. Customers can now access the City’s libraries’ collections at any time of the day or night from wherever they happen to be - whether at home, on the bus or halfway around the world.

To capitalise on the increasing popularity of this service, the City significantly increased its collection of eBooks available to library customers during 2012-13. Other popular services available through the eLibrary are the online magazine subscriptions through Zinio, the eAudio collection and the language learning resources available through the Transparent Language Online service.

Library membership procedures have also been revised to allow for online memberships, giving greater access to online services without the need to visit the library in person.

Local historyChanges to the Australian Curriculum mean that local history must now be taught in all primary schools. The Local History Librarian, based at Midland library has been busy developing information packages to assist schools with resources from the collection. Information packages include:

Photographs of the relevant area, including images depicting the development of local buildings and landmarks;

Aboriginal historical information; Reports relevant to the schools and the

history of the local area; Maps; Articles.

New and traditional servicesLibraries deliver many valuable services in Place. Libraries offer a wide range of programs to assist patrons with using new technologies, including computing classes for seniors, and information sessions on using iPads and other tablets. New programs are continually being developed to keep up with new and emerging technologies.

Libraries are also valued as a community building, with many groups regularly meeting at many of the City’s library branches. Book clubs continue to grow in popularity and the City’s libraries now host and support more than 20 book club groups and have more than 200 titles available for book club use. The City also hosts a huge array of events at its libraries, with writing workshops held throughout the year proving particularly popular.

Young people’s servicesLibraries continue to serve the needs of young people in the community, offering early literacy programs, such as Story time and Rhyme time. These programs continue to grow and develop with the expanding population of the City. Popular events held during the year have included the Mad Hatters Tea Party at Midland Public Library and a Teddy Bears Picnic at Ballajura Public Library.

Children’s Week WAThe City is a key stakeholder in the WA Children’s Week Reference Group which oversees the implementation of Children’s Week celebrations that occur annually in October. The City is an active promoter of the Children’s Week message that supports the rights of the child and encourages children and families to play, learn and grow together. Last year the City participated in the Children’s Week Art Awards by hosting art sessions for young children to get creative and express what it means to be ‘healthy’. Art entries submitted by the City of Swan on behalf of local children received commendation awards which were presented at the Heath Ledger Theatre in October 2012. The City’s Library and Early Years services also have an expo stall annually at the Family Fun Safe Day held at Whiteman Park during Children’s Week which attracts thousands of families from across WA.


Altone Ward Councillor, Mick Wainwright, (centre) encourages young people to take part in Children’s Week WA activities.

Building capacity

One Life projectThe City of Swan was awarded $268,500 by the Ministerial Council of Suicide Prevention (MCSP) to undertake six Community Action Plans (CAPs) as part of the One Life program.

The City has been ‘host agency’ for Stage 1 of six CAPs - including one for each Place Management area (Midland, Ellenbrook, Altone, Ballajura, Rural) and a whole of City youth-focused CAP. The Place-based CAPs focused on mapping the unique strengths, gaps and opportunities for these geographic communities, and also considered City-wide issues for children, families, seniors, Aboriginal people, CaLD communities, and people with a disability. The youth-focused CAP was designed to highlight issues for young people across the City, and link to the service development of the new Midland Headspace Centre.

The Stage 1 consultations are complete. It is estimated there were more than 10,000 consultation engagements, including at Place-based events, activities, meetings, seminars and programs. On-line surveys were also promoted with young people, health practitioners, teachers, and the general community.

Community trainingThroughout the 2013 calendar year, the City is providing monthly, free training sessions to build the capacity and networks of new and established community groups and organisations across the City. A series of seminars targeting seniors has been held on the same days. These information sessions were presented in partnership with the Council on the Ageing and were part of the City’s larger commitment to supporting seniors.

Groups and networksCity staff provided advice, information and linkages to assist community groups and networks to establish, become more effective and sustainable. In response to an identified community need, the City facilitated setting up a community counselling service and computer room in the Ellenbrook Place Office. The City has also been liaising with members of the Midland Trades and Crafts Alliance who are looking to establish a joint complex with several groups of similar interests.

Community development with seniorsThe City has undertaken a range of engagement and capacity building activities with local seniors groups. We also provide support and advice for seniors networks and have partnered with seniors groups to bring a range of events to the community. The City remains a key partner in the Ellenbrook Senior Social Space, and supported the Ageing Disgracefully Expo in Ballajura. We have a good working partnership with

the Swan Regional Senior’s Group, based in Midland, which enables the delivery of key activities, including the monthly Memorable Movies in Midland events and the annual Time of Your Life Festival. Keeping seniors active and connected with their community is very important and assisted by a series of bus outings for seniors living in Rural Place communities and the popular seniors Christmas lights tour organised in Ballajura. Buses are also organised to transport local seniors to Have A Go Day. Interest has grown in this annual event and buses now leave from Altone, Ballajura and Ellenbrook.

Community initiativesThe City supports a range of initiatives to provide inclusive community and family activities in Place, in partnership with local community groups. Through our involvement, we engage with local communities, promote participation and build the capacity of local groups to build their profile and deliver activities. These events celebrate the unique identities, achievements and attributes of the local community. Highlights from 2012-13 have included working with the Country Women’s Association and the Department for Communities to run the Toddler and Baby Bazaar, a series of Movie Nights throughout the City and school holiday activities.

Celebrating diversityMajor events were held in locations across the City to celebrate the unique identities, achievements and attributes of local communities. Many of these events included cultural elements distinct to their communities. Strong, diverse attendances were recorded and very positive feedback was received from the community. A full review of each event has been undertaken to identify improvement opportunities and local successes. Major events in the 2012-13 calendar included Ellenbrook Connect, Altone Comes Alive, Ballajura Harmony and a KULCHA on Swan concert in Bullsbrook.


Community care services

Practical helpThe City offers practical help and support to residents who are frail aged, living with dementia or disabilities and to carers. The range of support services is designed to help people maintain independence, improve quality of life and age in place, preventing premature entry into residential care.

Residents accessed personal care services, domestic assistance, social support, respite, gardening and home maintenance, and support through centre based services and community transport.

The important role of carers, and the associated responsibilities and pressures, is also recognised by the City, with a variety of support services offered to carers, including advice and information, respite care, social outings and the opportunity to get involved in the biannual Carers’ Forum.

Centre-based facilitationThe City offered a range of activity clubs and outing groups, catering for a range of demographics. Entertainment provided by these groups included excursions, guest musicians, artists or speakers, crafts, bingo, board games, in-house movies, special themed events and celebrations. As well as expanding services to younger people with a disability over recent years, the latest initiative has been the launch of a Men’s Shed service at the newly refurbished and extended facility in Beechboro.

TransportAn integral part of the City’s service delivery is the provision of community transport. In 2012-13, a total of 30,606 cost-effective transport trips were provided to clients and their carers to enable them to attend social activities, shopping and medical appointments. The vehicles are fully accessible and appropriately equipped for client/carer comfort and safety.

VolunteersThe provision of many of our services would not be possible without the support and dedication of a selfless team of volunteers. In 2012-13, volunteers contributed 25,658 hours of community care service delivery.

Aged careThe City has identified the potential for an aged care development on Paradise Quays in Ballajura and during 2012-13 undertook a 42-day community consultation to gauge community sentiment towards the project. This generated 213 survey responses from the community which will be presented to Council to seek a resolution on whether or not to proceed with the project.


2012-13 at a glance:

Number of outreach sessions - 120Number of contacts - 2,448Individual young people who received intentional case support - 96Linking to services (referrals) - 32Main issues for young people: mental health, family, peer relationships, bullying, legal, physical health and education.

Youth services

LeadershipThe City of Swan supports young people to speak out or lead, while building formal opportunities for young people to advocate to Council or other levels of government.

Youth Out Loud is a public speaking event open to students from Years 7 to 12. The planning committee for this event is made up of young people, mentored by City staff. Youth Out Loud was developed in memory of the late Mayor, Charlie Gregorini, in recognition of the passion and dedication to young people he demonstrated throughout his tenure at the City. The event was also designed to enable young people to voice their thoughts on current issues.

What Say YouthThe City works with local youth committees in Place to improve leadership, participation and active citizenship. A major initiative undertaken in 2012-13 was the production of films by local skate park user groups. Young people from Ballajura, Bullsbrook and Stratton came together to attend three workshops with a semi professional film maker who mentored them on film making and editing short films. The young people who attended the workshops led the process of making the film at their local skate park and got other young people involved in either filming or being interviewed for the film. The project aimed to highlight the positive impact of skate parks on young people and the community.

Youth outreachThe City delivers youth outreach programs in community ‘hot spots’, engaging with young people in environments where they feel safe. The main issues highlighted to staff by the young people were mental health, family, peer relationships, bullying, legal, physical health and education.

Skate Park Outreach Service projectThe City undertakes outreach at local skate parks where there has been a history of drug use and antisocial behaviour. The main objective is to promote healthy participation at the skate parks through various engagement strategies such as targeted outreach sessions, delivery of activities and by creating “user groups” for each skate park who take a leadership role.

During 2012-13, young people successfully ran skate park events in Stratton, Ballajura and Bullsbrook. The City also partnered with Holyoake drug and alcohol service to deliver workshops at skate parks.

Hyper Festival programHyper is the City’s youth-led festival program which promotes young people’s participation and skills development, and celebrates the unique identity and achievements in youth culture. More than 2,000 patrons, volunteers, bands and staff turned out for HyperFest 2012 to watch headline Australian acts Bluejuice, Purple Sneakers DJs, Seth Sentry and Heroes For Hire. These were supported by local talent.

The Hyper Vision art exhibition, held in July 2012, was based around the theme What’s on your radar? The pieces that were developed were a very eclectic mix of styles and artforms. Seventy pieces were submitted for exhibition by 35 artists, with most of these being displayed at the major exhibition and some at Midland Junction Arts Centre.

Facilitate youth centresThe City supports local youth centres to provide spaces for young people to meet, socialise, recreate and have access to positive adult relationships. We provide a range of support to youth centres in Place areas throughout the City. The City funds contracts with preferred service providers to provide a minimum number of open hours and programs, as well as subsidising the use of facilities.

In 2012-13, the City provided management and programs at the Cool Room Youth Centre in Ellenbrook and supported five youth centres through service agreements. These are the Swan City Youth Services (Midland), The Edge Youth Centre/Rise Community Services (Stratton), The Dungeon (Ballajura), Stand By Me Youth Services (Altone), and a mobile youth service through the Midland PCYC. Bullsbrook Youth Centre was not running due to the dissolution of the Bullsbrook Neighbourhood Centre Committee. However, a range of youth activities were offered in Bullsbrook directly by City staff.


Community safety

Working partnershipsCommunity safety is a high priority for the City and this is reflected in the variety of initiatives aimed to make our City a safe place. Community safety activities aim to increase public education and community awareness in relation to local laws, crime prevention and emergency management. These initiatives are aimed at keeping the community protected from a variety of safety concerns including those related to criminal activity, animals, vehicles and bushfires. The City also works with local police and community groups to improve security and amenity through a range of successful programs and committees including the Local Emergency Management Committee, Bushfire Advisory Committee, Eyes on the Street program, Neighbourhood Watch, Constable Care and Midnight Basketball programs.

During 2012-13, work started on the development of the City’s Community Safety Plan. This important document will guide the City’s priorities in this area over the next four years. Significant community consultation was undertaken during 2012-13 as part of the development of the plan, a draft of which will be available for public comment following Council endorsement in September 2013.

The Customer Advocate team provides an essential service to community members by investigating complaints, informing and educating stakeholders, and, when necessary, enforcing a range of legislation related to dogs, cats and other livestock, illegal dumping investigations, and abandoned and off road vehicles including trail bikes. The City responded to 8,637 customer requests through the City’s Customer Advocates during 2012-13.

Midnight basketballNow in its fourth year, this continues to be a highly successful program. Two tournaments were held in 2012-13, with each tournament running for eight weeks. The sessions provide a rewarding evening for young people who may have otherwise spent their Friday evening roaming the streets. Players must attend a compulsory life skills workshop to join the basketball games and can also share in a communal meal. This program continues to provide excellent outcomes for participants and the community through its partnership approach.

Constable CareConstable Care has delivered 55 performances to more than 5,000 students in the City of Swan during 2012-13. As part of the partnership agreement between the City and Constable Care, the arson prevention/bushfire safety theme made up 40 per cent of all upper primary performances.

Northbridge DiversionThe City has supported the Midland PCYC to run a positive and meaningful program, with interesting activities to engage young people on Friday nights. This is part of a strategy to encourage young people to remain in Midland, instead of congregating in Northbridge. About 85 per cent of the young people who attend this program are Indigenous. Increasing attendance and the distance some young people travel to attend show the value in this service.

GrafFix projectIn July, the City secured $144,567 in Federal Government funding to run an 18-month graffiti prevention, reduction and removal program. The multi-faceted, proactive approach to dealing with graffiti includes ongoing rapid removal, CCTV intervention and delivery of youth outreach and urban art projects in identified graffiti hotspots. The holistic strategy to this community issue, will have a strong emphasis on interventions and prevention measures to address the underlying issues surrounding graffiti.

Urban Stylin’This is an urban art project funded by grant money received from the Office of Crime Prevention (WA Police). It is a diversionary and education project which aims to divert young people in or close to the illegal “graffiti scene” into positive, legal art pursuits and educate this target group about the consequences of graffiti for themselves and the community.

Health

MonitoringCity environmental health staff continue to monitor aspects in the built and natural environment that have the capacity to affect human health. This includes water testing, mosquito reduction programs and air quality valuations.

During 2012-13, the City received more than 700 public health complaints, of which 260 related to noise. Staff carried out more than 1,400 risk assessment inspections of food businesses. A number of significant fines awarded by the courts for non-compliance with the Food Act demonstrate the value the community places on food safety matters.

While the revised Public Health Act did not come into effect at the end of 2012 as originally scheduled, the City continues to review environmental health planning in preparation for the legislative change.


GovernanceA sustainable and capable Council

Our vision is for the City of Swan to be regarded as a leader across Local Government and known as a Council that provides good governance. Our objectives include providing accountable and

transparent leadership, promoting the City as a place to live, work and visit, and improving the capability and capacity of the City.


Freedom of Information

RequestsThe City received 60 Freedom of Information applications (not including those transferred in full) for the 2012-13 financial year. Of the applications received, 59 were for non-personal information and one application for personal information. No applications relating to the amendment of personal information were received.

Of the applications received, 45 resulted in the City providing edited access to documents, with the most common exemption cited being Clause 3 of Schedule 1 of the Act, relating to personal information. Four applicants were refused access to documents in accordance with Section 26 of the Act. Two applications were refused access to requested documents and two applications were withdrawn by the applicants.

Of the applications processed, two were reviewed internally by the City upon request by the applicant and the original decision varied. Of those applications, one is currently being reviewed by the Office of the Information Commissioner.

In accordance with the Freedom of Information Act 1992, all access applications must be dealt with within 45 calendar days. The City’s average application processing time for 2012-13 was 15 days. A total of $1,371.50 was levied by the City in processing applications received during the financial year.

Promoting the City

Reaching our communityNew avenues to promote the City as a great place to live, work and visit were explored during 2012-13. The City also continued with mediums already in place, including the corporate website, Place newsletters, community calendar, media releases and events. The effectiveness of existing measures was monitored through a publications and marketing survey conducted in June and July 2012. The survey was conducted via hardcopy at the City’s libraries, leisure centres and main administration centre, as well as online via the City’s website.

The results show 70 per cent of respondents recall receiving the community calendar, 43 per cent remember receiving the Place newsletter and 22 per cent heard City advertisements on Nova 93.7FM. The level of satisfaction with the Place newsletter, community calendar and annual report was high, with the City rating above 85 per cent in all categories except the frequency of the Place newsletter. The survey was also an opportunity to find out what other media residents rely on for information.

The City in the mediaDuring 2012-13, 164 media releases were issued covering a range of topics. The media also showed an active interest in the City’s affairs, attending Council meetings, community and civic events, and local announcements. As a result, there were 2,922 articles mentioning the City of Swan or Council during the year in the press, radio, television and internet media.

Work on a social media strategy, policy, risk assessment and guidelines was started during 2012-13. This has involved workshops to consult with staff across the organisation and research into other Local Governments’ use of social media to ensure that the model implemented by the City is both innovative and consistent with the objectives of the City’s Strategic Community Plan.

Community calendarThe 2013 City of Swan calendar was focused on promoting and supporting local business, showcasing businesses which offer something a bit special and which can best promote our City and attract more residents and visitors to the region. Work has started on the 2014 community calendar, which will feature imagery of things to do in the City of Swan as its theme.


Metropolitan Local Government Review

Proactive stanceWith the State Government’s review into reforms of Local Government in the metropolitan area, the City has taken a proactive approach and met with each of the neighbouring LGAs. We have also devised a proposal for reform, under which Local Governments in the metropolitan area would be reduced to nine. We will continue discussions with our neighbours and are interested in working together towards reform.

Customer service

A priorityCustomer service is a high business priority at the City of Swan and to improve the quality of service to our residents and ratepayers, the City created and rolled out its Customer Service Charter, which sets the guidelines and standards for customer service expected from all City staff. A Customer Service Development Officer was also employed to implement a planned approach to improving the standard of customer service across the organisation, to both internal and external customers.

More than 142,500 telephone calls were received by the City’s customer service call centre during 2012-13, including 16,569 which were managed after hours. Of these, 95 per cent of calls were managed at the first point of contact, highlighting the efficiency of the service provided to our ratepayers and residents.

An interactive voice response telephony system was introduced this financial year. This new system allows for increased efficiency in the customer contact centre and better, more targeted, service delivery. A full refurbishment of the contact centre was undertaken, and new display stands were installed in the Administration Building foyer, providing easy access to City information and brochures on State Government initiatives.

Expanded servicesThe City has embraced the Place Management model of service delivery, and this financial year increased the number of services provided at Place, including the ability to process payments. Library staff have received training in cashier transactions and call centre enquiries to support this initiative.

A total of 26,255 cashiering transactions were made during the year, over the phone and at the front counter.

ComplaintsNew processes have been developed and implemented to assist with the registration and management of complaints. The data collected is used to identify trends and improvement opportunities. Complaints are categorised into four areas. This year the City received a total of 93 complaints, with 25 related to the attitude or behaviour of staff, 16 about decisions made by the City, 12 relating to substandard City facilities, and the remaining 40 on standard of service.

The main area of improvement identified through this feedback is the standard of service provided and it is anticipated this will be addressed through implementation of the Customer Service Improvement Strategy.


Place management

Strengthened focusThe City has strengthened its focus on delivery of services at Place. The Place Management model used by the City is designed for managing and servicing our communities at the local level. The City is currently divided into five Places based on geographically identified communities and communities of interest. Place offices are conveniently located within Place Service Hubs, offering easy access to a wide range of services.

Each of our Places has a Place Leader, Place Manager and Place teams. The Place Leader has overall accountability for the negotiation and delivery of services at Place, including business planning and managing strategic issues within the Place. Place Managers are the operational interface with the wider community. They work across Business Units within the City, providing a two-way conduit between the City and the community on matters of importance to their respective communities.

A Place team is made up primarily of City staff who work from a Place Service Hub including a Place office or other Place facility. These staff include Customer Advocates, Place Managers, and staff from community development, customer service, Place administration support, libraries and leisure centres.

A Place Service Hub is centrally located and typically involves the clustering of community facilities that provide space for local organisations and access to services. The City is working towards recognising Place Service Hubs within each Place that will encompass the local Place office, library, leisure centre and other City facilities that are in close proximity. This allows for improved customer service at Place.


Responsible governance

Information managementThe safe, secure and proper keeping of records is essential when managing an area the size of the City of Swan. Paper and electronic records are a core information resource in the City, and sound record keeping practices contribute to the overall efficiency and effectiveness of the organisation. The City remains committed to meeting the requirements of the State Records Act 2000. Records are a core information resource in the City of Swan and sound recordkeeping practices are acknowledged to contribute to overall effectiveness and efficiency of the organisation. The City’s records management program aims to ensure proper and adequate records are created, maintained and kept to ensure sufficient evidence of the City’s performance of its functions.

The City has a responsibility to ensure all staff are aware of their recordkeeping requirements in relation to the State Records Act 2000. The City uses an online recordkeeping training system to provide regular recordkeeping and systems training programs for all staff. In the past financial year, 28 staff participated in the training.

Business systemsNew key business systems were implemented during 2012-13. These included a unified management system for the City’s leisure and aquatic centres, electronic reporting of occupational health and safety incidents, and the public launch of ICON Lodge. The latter is an electronic lodgement portal, used by builders and architects to lodge building licence applications at any time of the day or night.

Flexible and mobile work arrangements are increasingly important and work was started on a project to arrive at a unified communication system for all of the City’s facilities. This will also include the ability for staff to work from home. Additional work was undertaken on the implementation of IT infrastructure to enable access to corporate systems from (almost) anywhere, and the rollout of tablet PCs for the mobile workforce and management continued this financial year. We are also preparing for the digitisation of source records and their proper disposal.

The City started work on building a new computer disaster recovery room. This will increase our capabilities in the area of business resilience and disaster recovery for computing services in the event of an emergency situation.

Long term financial planningOne of the most pressing civic leadership issues the City faces is that of financial sustainability. Central to this is having enough money to operate, maintain and renew all of the existing assets to the appropriate level of service while providing new infrastructure to meet the needs of the growing population. Managing community expectations as to how much the City can deliver with minimal increases to rates and charges is challenging.

Long term financial estimates are an integral part of Council’s strategic planning process and represent a 10 year rolling plan. The City has completed a review of its Long Term Financial Plan for 2013-14 to 2022-23 and set its operating and capital requirements for this period. The budgets for each financial year have been balanced and the plan will be continuously reviewed to reflect the prevailing economic conditions and changing community needs.

Developer Contribution Plans (DCPs)These are a means of sharing the cost of providing a community with the infrastructure that satisfies its economic and social needs. Land owners in the affected area are required to contribute towards the cost of that infrastructure but only when an application to subdivide a property is made. The required contribution can be made in the form of monetary contributions, the provision of agreed infrastructure works and/or the ceding of land. For the DCPs to function successfully, various departments within the City co-ordinate their activities. The City currently operates three Development Contribution Areas, namely Brabham (Albion), Dayton (West Swan West) and Caversham. During the 2012-13 financial year, the City received $10.7 million in monetary contributions and recognised $4.4 million in non monetary contributions from the provision of agreed infrastructure works and the ceding of land from the three contribution areas.

Fair ValueThe City of Swan has started the three year transition from historical cost valuation of assets to the ‘Fair Value’ method, as prescribed under an amendment to the Local Government (Financial Management) regulations. The change requires all physical non-current assets to be valued on a fair value basis with full implementation by June 30, 2015. Phasing in of this requirement began in 2012-13 with building, land, infrastructure, plant and equipment and vehicle classes undergoing revaluation for June 30, 2013. Remaining classes will be finalised in line with the Department of Local Government and Communities’ suggested timeframe.


Lehman BrothersThe City has recovered $1.5 million in funds that were previously written down to almost a nil value. The recovery is a result of legal action taken by the City, as part of the Belmont Group of litigants. The group were successful in legal action taken to enforce a ‘flip clause’ on the Dante series of CDOs. While successful in the UK Supreme Court, the trustee would not distribute the funds, until the matter was dealt with by the New York Bankruptcy Court. The NY Bankruptcy Court was sympathetic to Lehman Brothers and had stayed proceedings for many years. The Belmont Group of litigants negotiated a settlement to recover funds that equates to $1.5 million for the City.

The City is also the lead plaintiff in legal claims against Lehman Brothers Australia as well as Standard and Poor’s rating agency. In the action against Lehman Brothers Australia, the City received a positive finding in September 2012 when Justice Rares handed down his judgement in favour of the Cities of Swan, Wingercarribee (NSW) and Parkes (NSW). However, liquidator PPB has lodged an appeal. A scheme dealing with insurance proceeds is awaiting court approval, with a partial distribution expected in early 2014 and the balance of distribution to occur through liquidation some time after.

The City has been a leader in the fight to ensure Councils and community organisations, including charities and church groups, are able to recover as much money as possible after the Lehman Brothers collapse. The City will continue to pursue this on all fronts.

Grants and sponsorship

Assisting our communityDuring the 2012-13 financial year, $345,980 was allocated to 1,141 individuals and groups within the City of Swan through grants and sponsorship. The funding assists community members and organisations to run events and programs, and to pursue outstanding endeavours. Sporting, community and service groups as well as individuals are all eligible to apply for funding. One hundred individuals accessed funding through the Access All Areas program and 973 individuals received funding through the KidSport program. The Swan Community Funding Scheme offers a number of funding categories from cash donations through to the support of iconic events within the City.

Swan cash donationsDonations are granted to a wide range of City of Swan residents to support outstanding endeavours such as competing in State, National and International sporting events and arts and cultural events.

Swan non-cash donationsDonations are provided to a wide cross-section of organisations to support community projects and events.

Grants provided during the 2012-13 financial year:Small grants of up to $1,000 to support seeding grass roots initiatives

Ellenbrook Cultural Foundation - Short and Sweet Writing project

Bullsbrook and Districts Senior Citizens Association - Assistance with bus hire for excursions

Brockman House Inc - Vacation care program and martial arts instructor

Matching grants of up to $20,000 - to encourage a sustainable approach

Jane Brook Community Association - Foreshore Reserve Rehabilitation project

Therapy Through Design - Yellow Bird project

Swan events Meerilinga - Meerilinga’s Children’s Week official

opening Community Key/Swan Regional Seniors Group -

Time of Your Life Festival Rotary Club of Ballajura - Ballajura Community Fair Gidgegannup Agriculture Society - Gidgegannup

Agricultural Show St Matthew’s Anglican Church - Stirling Square Carols

by Candlelight event Swan Districts Baseball Club - 2012 International

Goodwill Games Ballajura Lions Club Inc - Harmony Day Riding for the Disabled - 2013 Metropolitan Games

of RDA Stand By Me Youth Service - Activities at the Altone

Comes Alive event Guildford Heritage Festival Council Inc - 2013

Guildford Festival Swan Chamber of Commerce Inc - Swan Women

in Business Expo Country Women’s Association of Western Australia Inc -

CWA Handcraft and Home Farm Garden Exhibition

Iconic eventsNortham Avon Descent Association - Bells Rapids Race, Act-Belong-Commit Avon Descent

Awards supportedMalaga and Districts Business Association Inc - Malaga Business Excellence Awards 2013


Grants from the State and Federal Government AgenciesRoads to Recovery Grants 2012-13

Beechboro Road, Bennett Springs (At the intersection of Beechboro Road and Marshall Road) $140,000

Morley Drive East, Lockridge (East of Altone Road to Korbosky Street on the eastbound lanes) $195,000

Summerlakes Parade, Ballajura (South of Lagoon Heights) $100,000

Clenton Road, Gidgegannup (From Avon Road eastwards) $40,000

O’Brien Road, Gidgegannup (North of Gogulger Stock Route) $40,000

Stirling Crescent, Hazelmere (From Christina Street to Amherst Street) $130,000

Whittome Street, Middle Swan (From Dance Drive to Dickson Drive) $95,000

Ellenbrook Road, Bullsbrook (East of Railway Parade) $199,880

Dalgety Road, Herne Hill (Between Swan Road and Albert Road) $45,000

Marangaroo Drive, Ballajura (Between Illawarra Crescent and Vista Parade, eastbound lanes only) $63,600

Metropolitan Regional Roads Group Rehabilitation Grants Scheme 2012-13

Alexander Drive, Ballajura $63,610 Smith Road, Bullsbrook $49,220 Warbrook Road, Bullsbrook $21,804

Other significant funding approved during the financial year includes:

$1,047,574 from the Department of Sport and Recreation through the Community Sport and Recreation Facilities Fund (CSRFF) for the development of playing fields for Ellenbrook District Open Space (North)

$185,000 from the Department of Sport and Recreation through the CSRFF for floodlighting at Swan View Oval

$250,000 from the Department of Sport and Recreation through the CSRFF for the Charlotte’s Vineyard Pavilion

$143,500 from the Department of Sport and Recreation for the KidSport program

$1,625,000 from Lotterywest for the Midland Youth Services Hub

$144,567 from the Department of the Attorney General for the GrafFix project

$450,000 from Lotterywest for the Aveley Community Building

$450,000 from Lotterywest for Ellenbrook District Open Space (North)


Financial report 2012/2013


Table of contents

INDEPENDENT AUDITOR’S REPORT 64

STATEMENT BY THE CHIEF EXECUTIVE OFFICER 66

FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2013 67

STATEMENT OF COMPREHENSIVE INCOME 67

STATEMENT OF CASH FLOWS 70

STATEMENT OF RATING INFORMATION 71

FINANCIAL PERFORMANCE INDICATORS 71

STATEMENT OF COMPREHENSIVE INCOME (BY NATURE OR TYPE) 74

STATEMENT OF COMPREHENSIVE INCOME (BY PROGRAM) 75

STATEMENT OF FINANCIAL POSITION 77

STATEMENT OF CHANGES IN EQUITY 78

STATEMENT OF CASH FLOWS 79

RATE SETTING STATEMENT 80

NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT 81 to 125

SUPPLEMENTARY INFORMATION TO THE FINANCIAL REPORT 126


FINANCIAL OVERVIEW FOR THE YEAR ENDED

The Financial Report for the requirements of the Local Government Act 1995, the Local Government (Financial Management) Regulations 1996 including amendments up to June 2013

Standards. The Statements have been prepared on a full accrual basis, and recognise the value of all infrastructure assets (roads, drains, footpaths, parks and reserves).

STATEMENT OF COMPREHENSIVE INCOME

REVENUE

The City’s total revenue for the financial year was $ordinary activity and $55.7

Total revenue was $185.5 17.9% or $28.1 million over the contributions from DevelopersSubsidies & Contributions increased by $6 million and F

The following chart shows the sanitation are reflected in the funding contributions to the tPurpose Funding, Community Amenities

BC

D

E

F

G

H

General Purpose Income A

Law Order & Public Safety C

Education and Welfare E

Community Amenities G

Transport I - 1.09%

Other Property & Services K

City of Swan Financial Report 2012/2013

FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2013

The Financial Report for the 2012/13 financial year has been prepared in accordance with the requirements of the Local Government Act 1995, the Local Government (Financial Management)

uding amendments up to June 2013, and the relevant Australian Accounting

Statements have been prepared on a full accrual basis, and recognise the value of all infrastructure assets (roads, drains, footpaths, parks and reserves).

ENSIVE INCOME

total revenue for the financial year was $185.5 million, of which $129.8 million related to capital and investment transactions.

million compared to $157.4 million for the previous year. ver the previous year, this was due to increase in the Non

contributions from Developers of $9.6 million, rates increased by $7.1 million, NonSubsidies & Contributions increased by $6 million and Fees and Charges increased by $3

shows the breakdown of revenue by program. Rates and treflected in the funding contributions to the three largest segments

Community Amenities and Recreation & Culture.

H

IJ K

REVENUE BY PROGRAM

General Purpose Income A - 73.63% Governance B - 0.15%

Law Order & Public Safety C - 1.66% Health D - 0.25%

Education and Welfare E - 3.26% Housing F - 0.05%

Community Amenities G - 12.58% Recreation & Culture H

Economic Services J - 1.24%

Other Property & Services K - 1.42%

Financial Report 2012/2013

67

financial year has been prepared in accordance with the requirements of the Local Government Act 1995, the Local Government (Financial Management)

, and the relevant Australian Accounting

Statements have been prepared on a full accrual basis, and recognise the value of all

129.8 million was from transactions.

million for the previous year. The increase of in the Non-Operating In-Kind

, Non-Operating Grants, ased by $3 million.

Rates and the City's emphasis on largest segments, being General

A

Recreation & Culture H - 4.68%

1.24%


68

The City continues to have strong development 2011/12) of non-cash infrastructure assets land areas. The value of these contributions Comprehensive Income. As part of the Developers Contribution Plans funds of $10.7 million from the developersof Comprehensive Income. The funds received development areas. The City takes on the responsibility for the maintenance of these assets, and thecontributions are taken into account in the City’s asset register.

Analysis of revenue by nature and type shows that the major source of revenue in rates and associated chargesand was $0.34 million moresanitation charge at $14.3 million as well as property rental fees at $2.

Grants, subsidies and contributions source of income for the City in with $16 million in the previous year. Of the amount received, $and $11.6 million for capital

OTHER COMPREHENSIVE INCOME

A revaluation of the City’s plant and equipment, land, buildings and and footpaths) was carried out the replacement value of the City’s and equipment, land and buildings were revalued to fair value. Plant and equipment were revalued internally; land and buildings were vaincrease of $171.4 million is shown as Other Comprehensive Income in the Statement of Comprehensive Income and is not included in

D


continues to have strong development outcomes and received $25.6 million, infrastructure assets (i.e. roads, drains and footpaths) from developers of new

d areas. The value of these contributions is shown as non-operating income in the As part of the Developers Contribution Plans the City has received provisional

from the developers, which is shown as non-operating income in the Statement of Comprehensive Income. The funds received will in part be allocated to assets built

The City takes on the responsibility for the maintenance of these assets, and theaken into account in the City’s asset register.

evenue by nature and type shows that the major source of revenue in and associated charges, which amounted to $86.2 million, compared to $79

more than the original budget. Another main source of revenue was the million as well as property rental fees at $2.3 million.

and contributions for operating and capital expenses continued to be of income for the City in 2012/13. The City received $21.46 million during the year, compared

the previous year. Of the amount received, $9.8 million was for capital projects.

plant and equipment, land, buildings and infrastructure assets (roads, drainage ootpaths) was carried out at the 30th June 2013. The revaluation resulted in a significant

the replacement value of the City’s assets. Due to legislative changes, this was the first year that plant and equipment, land and buildings were revalued to fair value. Plant and equipment were revalued

land and buildings were valued by an independent third party valuation company. million is shown as Other Comprehensive Income in the Statement of Comprehensive

not included in the calculation of the year’s net result.

B

C

E

F

OPERATING REVENUE BY NATURE OR TYPE

Rate Levies A - 46.5%

Service Charges B - 0.5%

Fees & Charges C - 14.5%

Grants, Subsidies & Contributions D - 31.1%

Interest Earnings E - 2.3%

All Other Revenue F - 5.1%

25.6 million, ($16 million in from developers of new

operating income in the Statement of the City has received provisional

operating income in the Statement be allocated to assets built in the

The City takes on the responsibility for the maintenance of these assets, and these

evenue by nature and type shows that the major source of revenue in 2012/13 was from 79.1 million in 2011/12

main source of revenue was the .

ontinued to be an important million during the year, compared

as for operating activities

infrastructure assets (roads, drainage tion resulted in a significant increase in

Due to legislative changes, this was the first year that plant and equipment, land and buildings were revalued to fair value. Plant and equipment were revalued

lued by an independent third party valuation company. The million is shown as Other Comprehensive Income in the Statement of Comprehensive

A

31.1%

EXPENSES

The City’s total expenditure for the financial year was $activities.

The greatest source of expenditure was million of expenditure. This representscomponents of this program are the operations of Swan Park Centre, Ballajura Aquatic Centrethe respective buildings.

The next most substantial program, of roads, consumed 27.15% or $$3.1 million in program expenses compared to the $

Analysis of expenditure by nature and type indicates that employee c47% of total operating costs. Th

Depreciation of non-current assets, which amounted to $another large area of expense. This

I

General Purpose Income A

Law Order & Public Safety C

Education and Welfare E -

Community Amenities G -

Transport I - 27.15%

Other Property & Services K


City’s total expenditure for the financial year was $117.6 million, which all related to

greatest source of expenditure was Recreation & Culture Program consum. This represents an increase on 2011/12 expenditure of $

components of this program are the operations of Swan Park Leisure Centre, Altone Park Centre, Ballajura Aquatic Centre, the six libraries and the maintenance of Parks &

next most substantial program, Transport, includes the maintenance of more than % or $31.6 million of the total expenditure. This represented

program expenses compared to the $28.4 million expended in 2011/12

nature and type indicates that employee costs at $55.3operating costs. This represents an increase of $3.3 million over the previous year.

current assets, which amounted to $27.2 million or 23.2% of total expenses, was large area of expense. This expense reflects changing values of the assets

A B C

H

J K

EXPENDITURE BY PROGRAM

General Purpose Income A - 1.57% Governance B - 6.56%

Law Order & Public Safety C - 4.36% Health D - 1.24%

- 6.81% Housing F - 0.11%

- 16.64% Recreation & Culture H

Economic Services J -

Other Property & Services K - 2.49%


69

which all related to operating

consuming 29.62% or $34.4 expenditure of $1.6 million. The major

Centre, Altone Park Leisure ance of Parks & Reserves, including

e maintenance of more than 1,390 kilometres This represented an increase of

2011/12.

55.3 million accounted for million over the previous year.

% of total expenses, was assets of the City.

D

E

F

G

6.56%

Recreation & Culture H - 29.62%

- 3.45%


70

STATEMENT OF CASH FLOWS

The City received $132 million during compared to the previous year. The main sourceincreased by $9.3 million over the previous yeargrants, subsidies and contributions $0.4million compared to the previous year andvariances.

Payments for operating activities in compared to the previous year. increase of $3.7 million Employee

The net cash provided by operating activities was $previous year.

The net cash used in 2012/13buildings, investments etc) was $decrease is a result the increase in the Capital Grants, Subsidies & Contributions.

The overall effect of all activities of the City during

$50.7 to $77.7 million.

C

D

E

Employee Costs A - 47%

Materials & Contracts C - 22.7%

Depreciation on Non-Current Assets E

Insurance G- 0.7%


million during 2012/13 from operating activities, an increase of $compared to the previous year. The main sources of cash were rates and

million over the previous year. Overall increases were partly ontributions of $4.8 million on the previous year. Interest earnings

million compared to the previous year and income from other business activities

Payments for operating activities in 2012/13 totalled $88.3 million, an increase of $compared to the previous year. Materials and contracts decreased by $3.6 million which is offset by an

Employee payments. Other payments had a net decrease

The net cash provided by operating activities was $43.7 million, a significantly higher

2012/13 on investing activities (plant and equipment, constructioetc) was $23.9 million compared to $27.4 million the previous year.

the increase in the Capital Grants, Subsidies & Contributions.

effect of all activities of the City during 2012/13 was an increase in the cash balance

B

F G

EXPENDITURE BY NATURE OR TYPE

All Other Expenditure B - 0.7%

22.7% Utilities D - 4.5%

Current Assets E - 23.2% Interest Expenses F - 1.2%

from operating activities, an increase of $6.4 million and fees & charges which

offset by a decrease in nterest earnings increased by

activities showed marginal

crease of $0.6 million Materials and contracts decreased by $3.6 million which is offset by an

decrease of $0.5 million.

significantly higher result to the

construction of roads and illion the previous year. The

the increase in the Capital Grants, Subsidies & Contributions.

increase in the cash balance from

A


71

STATEMENT OF RATING INFORMATION

Note 27 of the Financial Statements provides rating information.

The Local Government Act 1995 allows local governments to adopt differential rates, and the City of Swan has levied differential rates for a number of years. This has been adopted to allow an equitable

basis of levying rates on the diverse types of rateable properties in the Municipality.

Properties in the urban suburbs of the Municipality have rates based on the Gross Rental Values (GRVs) of the properties as determined by the Valuer General once every three years. A revaluation was undertaken during the 2011/12 financial year. The City of Swan increased Gross Rental Value of differential rates by approximately 6.5%.

Properties in the rural areas have rates based on the Unimproved Values (UVs) of the properties as determined by the Valuer General each year. The General Rural rate in the dollar is the base rate for rural properties. Concessional rates are set for Urban Farmland and Swan Valley Farmland, with a premium rate for Special Areas and Landscape zones.

The total rates levied in 2012/13 as was $83.5 million, slightly below the budget of $84.2 million.

FINANCIAL PERFORMANCE INDICATORS

Measures the percentage of net rate revenue allocated to the repayment of loans.

1

2

3

4

5

6

7

8

9

10

%

Year

Debt Costs to Rates Income


72

The net annual growth of rate revenue compared with loan repayments each year.

Measures the percentage of total operating revenue allocated to the repayment of loans.

1

2

3

4

5

6

7

10

20

30

40

50

60

70

80

90

100

R

e

p

a

y

m

e

n

t

s

$M

R

a

t

e

s

Year

Rates Income/Loan Repayments

RATE REVENUE LOAN REPAYMENTS

$M

0

1

2

3

4

5

6

%

Debt Servicing RatioDebt Service Costs/Operating Revenue

Year


73

Compares total principal outstanding on loans at the end of each financial year.

Compares total operating revenue over the current and previous financial years.

5

10

15

20

25

30

35

$M

Year

Principal Outstanding

35404550556065707580859095

100105110115120125130135

R

e

v

e

n

u

e

Year

Operating Revenue$M


2012/13

BUDGET

Actual ($)

2012/13

Actual ($)

2011/12

Revenue

85,856,260 Rates Revenue 27 86,198,174 79,104,173

942,100 Service Charges 29 972,474 917,483

26,675,100 Fees & Charges 30 26,914,614 23,902,265

7,123,320 Operating Grants, Subsidies & Contributions 31 9,764,630 10,285,596

3,856,000 Interest Earnings 2(A) 4,324,383 4,175,098

1,467,610 Other Revenue 1,624,828 1,846,775

125,920,390 Sub-Total Ordinary Revenue 129,799,102 120,231,391

Expenses

(57,623,220) Employee Costs (55,294,304) (51,976,602)

(27,332,501) Materials & Contracts (26,751,318) (25,608,332)

(5,105,310) Utility Charges (5,338,141) (4,457,614)

(27,278,600) Depreciation on Non-Current Assets 2(A) (27,189,887) (25,289,261)

(1,471,500) Interest Expenses 26(C) (1,388,833) (904,077)

(350,680) Insurance Expenses (827,772) (392,110)

(937,250) Other Expenses (852,595) (829,322)

(120,099,061) Sub-Total Ordinary Expenses (117,642,850) (109,457,317)

5,821,329 12,156,253 10,774,074

Add Non-Ordinary Activities

14,875,450 Non-Operating Grants, Subsidies & Contributions 31 11,638,364 5,688,354

10,000,000 Non-Operating Gifted Assets from Developers: Other 31 21,212,317 16,016,647

2,662,550 Developers Contribution Plans: Cash 31 10,685,586 9,997,682

7,926,940 Developers Contribution Plans: In Kind 31 4,426,823 -

720,000 Profit/(Loss) on Disposal of Assets 23 472,575 667,973

- Profit/(Loss) on Impairment of Assets (Vehicles) 8 (172,274) -

- Profit/(Loss) on Investments 3(B) 2,176,769 (576,059)

3,400,000 Unrealised Gain from Other Financial Assets: EMRC 20 5,241,301 5,341,666

45,406,269 Net Result 67,837,714 47,910,336

Other Comprehensive Income

- Changes on revaluation of Non Current Assets 15 171,435,553 27,453,521

45,406,269 Total Comprehensive Income 239,273,267 75,363,857

Notes:

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

STATEMENT OF COMPREHENSIVE INCOME BY NATURE/TYPE

For the Year Ended 30 June 2013

The amount shown as Rates Revenue in this statement is greater than that shown in the Rates Setting Statement as it includes

Specified Area Rates and Rates in Advance which is shown separately in the other statement. Refer to Note 27A of the notes.

Notes

74


2012/13

BUDGET

Actual ($)

2012/13

Actual ($)

2011/12

Operating Revenue

92,363,260 General Purpose Funding 27(A) 95,609,494 89,298,688

113,410 Governance 189,684 165,320

1,814,120 Law Order & Public Safety 2,119,185 1,825,067

293,500 Health 322,695 244,364

4,067,930 Education & Welfare 4,214,559 3,856,711

50,000 Housing 62,085 56,644

16,111,900 Community Amenities 16,331,653 15,636,018

6,200,460 Recreation & Culture 6,070,964 5,305,723

1,198,960 Transport 1,417,440 1,241,497

2,099,200 Economic Services 1,612,089 1,699,794

1,607,650 Other Property & Services 1,849,255 901,565

125,920,390 129,799,102 120,231,391

Operating Expenses Excluding Borrowing Costs

(2,021,719) General Purpose Funding (1,835,865) (1,619,512)

(9,065,254) Governance (7,626,909) (7,784,693)

(4,899,727) Law Order & Public Safety (5,066,494) (4,456,784)

(1,495,488) Health (1,437,497) (1,331,893)

(8,666,804) Education & Welfare (7,916,815) (7,330,901)

(132,599) Housing (133,488) (140,063)

(20,215,755) Community Amenities (19,342,162) (18,967,847)

(35,634,777) Recreation & Culture (34,434,573) (32,801,053)

(30,336,536) Transport (31,556,384) (28,435,552)

(4,969,625) Economic Services (4,008,135) (4,231,434)

(1,189,277) Other Property & Services (2,895,695) (1,453,509)

(118,627,561) (116,254,017) (108,553,240)

Borrowing Costs Expense 26(C)

(205,540) Governance (203,927) (128,963)

(421,910) Recreation & Culture (344,070) (295,955)

(419,390) Transport (363,867) (325,822)

(424,660) Other Property & Services (476,970) (153,338)

(1,471,500) (1,388,833) (904,077)

5,821,329 Net Operating Result 12,156,253 10,774,074


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM


Notes

75


2012/13

BUDGET

Actual ($)

2012/13

Actual ($)

2011/12

Non Operating Grants, Subsidies, Contributions 31

10,589,490 Governance 15,112,409 9,997,682

- Law Order & Public Safety - 21,150

280,000 Education & Welfare 555,315 423,338

- Community Amenities 22,295 22,727


19,243,880 Transport 28,927,119 18,230,241

- Economic Services - 25,000

- Other Property & Services 17,616 -

35,464,940 47,963,090 31,702,683

Profit / (Loss) on Disposal of Assets 23

- Governance (18,076) 9,942

- Recreation & Culture (58,083) -

720,000 Transport 548,735 658,031

720,000 472,575 667,973

Profit / (Loss) on Impairment of Assets 8

- General Purpose Funding (172,274) -

- (172,274) -

Profit / (Loss) on Investments 3(B)

- General Purpose Funding 2,176,769 (576,059)

- 2,176,769 (576,059)

Unrealised Gain from Other Financial Assets:

EMRC20

3,400,000 General Purpose Funding 5,241,301 5,341,666

3,400,000 5,241,301 5,341,666

45,406,269 Net Result 67,837,714 47,910,336

Other Comprehensive Income 15

- Changes on revalution of Non Current Asset 171,435,553 27,453,521

45,406,269 Total Comprehensive Income 239,273,268 75,363,857


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM (Continued)


Notes

76

City Of Swan Financial Report 2012/2013

Notes

ACTUAL ($)

2012/13

ACTUAL ($)

2011/12

Current Assets

Cash and cash equivalents 3(A) 77,739,200 50,679,765

Investments 3(B) 1,791,679 2,489,864

Trade and other receivables 4 6,696,696 5,995,776

Other Assets 6 273,451 201,386

Inventories 5 139,428 205,053

Total: Current Assets 86,640,453 59,571,844

Non Current Assets

Trade and other receivables 4 2,228,421 2,363,412

Property, plant and equipment 8 317,460,245 107,525,742

Infrastructure 9 681,056,551 671,688,942

Other Financial Assets 7 32,715,166 27,473,865

Total: Non Current Assets 1,033,460,383 809,051,961

Total Assets 1,120,100,836 868,623,805

Current Liabilities

Short term borrowings 11 3,795,791 2,182,164

Trade and other payables 10 12,531,933 8,857,224

Income in advance 12 - 2,148,544

Provisions 13 9,096,450 8,411,654

Total: Current Liabilities 25,424,174 21,599,586

Non Current Liabilities

Long term borrowings 11 26,784,943 21,442,393

Trade and other payables 10 6,230,432 3,213,799

Provisions 13 1,370,306 1,350,311

Total: Non Current Liabilities 34,385,681 26,006,504

Total Liabilities 59,809,855 47,606,090

NET ASSETS 1,060,290,982 821,017,715

Equity Accounts

Accumulated Surplus 636,504,887 579,457,682

Revaluation Surplus 15 371,874,179 200,438,626

Cash Backed Reserves 14 51,911,916 41,121,407

TOTAL EQUITY 1,060,290,982 821,017,715


STATEMENT OF FINANCIAL POSITION

As at 30 June 2013

77


Notes

Retained

Surplus

Reserves

Cash/Investment

Backed

Revaluation

Surplus Total Equity

($) ($) ($) ($)

Balance as at 30 June

2011 546,436,082 26,232,671 172,985,105 745,653,858

Net result 2011/12 47,910,336 - - 47,910,336

Other Comprehensive Income - - 27,453,521 27,453,521

Transfer from/(to) Reserves (14,888,736) 14,888,736 - -


2012 579,457,682 41,121,407 200,438,626 821,017,715

Net result 2012/13 67,837,714 - - 67,837,714

Other Comprehensive Income 15 - - 171,435,553 171,435,553

Transfer from/(to) Reserves 14 (10,790,509) 10,790,509 - -


2013 636,504,887 51,911,916 371,874,179 1,060,290,982

STATEMENT OF CHANGES IN EQUITY

As at the 30 June 2013


78


2012/13

BUDGET CASH FLOWS FROM OPERATING ACTIVITIES Note

Actual ($)

2012/13

Actual ($)

2011/12

Receipts

85,493,151 Rates Revenue 86,047,857 78,537,662

936,674 Service Charges 972,474 917,483

26,662,205 Fees & Charges 25,605,861 23,881,423

3,856,000 Interest Earnings 4,308,770 3,894,217

7,111,153 Operating Grants, Subsidies & Contributions 7,616,086 12,501,266

1,467,610 All Other Revenue 4,641,461 3,064,920

3,618,400 GST Inflow 2,804,816 2,787,940

129,145,193 Total Receipts 131,997,325 125,584,911

Payments


(5,120,360) Utility Charges (4,706,559) (4,457,614)

(57,321,165) Employee Costs (54,598,719) (50,926,627)

(350,680) Insurance Payments (827,772) (377,073)

(1,471,500) Interest Payments (1,388,833) (904,077)

(999,639) Other Payments (851,126) (888,710)

(3,716,799) GST Outflow (2,138,992) (2,716,799)

(95,319,642) Total Payments (88,318,110) (87,710,444)

33,825,549

Net cash provided/(used) by operating

activities 16(B) 43,679,214 37,874,467

CASH FLOWS FROM INVESTING ACTIVITIES

(28,927,870) Purchase/Construction of Capital Assets (35,166,088) (24,427,012)

STATEMENT OF CASH FLOWS


(30,653,030) Purchase/Development of Infrastructure (15,344,641) (21,988,392)

- Proceeds from Disposal of Investments 2,874,955 3,458,468

12,875,450 Capital Grants, Subsidies & Contributions 11,638,364 5,688,354

2,662,550 Developer Contributions: Cash 10,685,586 8,392,083

1,735,600 Proceeds from Sale of Fixed Assets 1,393,725 1,524,685

(42,307,300)

Net cash provided/(used) by investing

activities (23,918,100) (27,351,815)

CASH FLOWS FROM FINANCING ACTIVITIES

10,285,000 Proceeds from Loan Borrowings 9,482,570 14,070,400

(2,594,095) Repayment of Borrowings (2,526,393) (1,131,305)

75,430 Self Supporting Loans - Repayments 82,928 58,100

120,000 Other Loan Repayments Received 160,000 200,000

- ESL Movements 99,215 238,049

7,886,335

Net cash provided/(used) by financing

activities 7,298,321 13,435,244

(595,416) Net increase/(decrease) in cash held 27,059,435 23,957,896

46,589,027 Cash at the beginning of the year 50,679,765 26,721,869

CASH & CASH EQUIVALENTS AT

45,993,611 THE END OF THE YEAR 16 (A) 77,739,200 50,679,765


79


2012/13

BUDGET OPERATING REVENUE

Actual ($)

2012/13

Actual ($)

2011/12

942,100 Service Charges 972,474 917,483

26,675,100 Fees & Charges 26,914,614 23,902,265

1,660,000 Specified Area Rates & Rates in Advance 2,157,195 1,809,420

7,123,320 Operating Grants, Subsidies & Contributions 9,764,630 10,285,596


1,467,610 Other Revenue 1,624,828 1,846,775

41,724,130 Subtotal - operating revenue 45,758,123 42,936,637OPERATING EXPENSE

(57,623,220) Employee Costs (55,294,304) (51,976,602)


(5,105,310) Utility Charges (5,338,141) (4,457,614)

(27,278,600) Depreciation on Non-Current Assets (27,189,887) (25,289,261)

(1,471,500) Interest Expenses (1,388,833) (904,077)

(350,680) Insurance Expenses (827,772) (392,110)

(937,250) Other Expenses (852,595) (829,322)

(120,099,061) Subtotal - operating expense (117,642,850) (109,457,316)

(78,374,931) Net from operating activities (71,884,726) (66,520,679)Non Cash Items

Movement in Deferred Rates (Non Current) (127,080) (200,411)

Movement in Other Debtors (Non Current) 160,000 200,000

275,802 Movement in Employee Provisions and Adjustments (6,920,480) 972,302

27,278,600 Write Back Depreciation 27,189,887 25,289,261

27,554,402 Total 20,302,327 26,261,152Capital Works

(30,653,030) Purchase/construction of Infrastructure Assets (24,908,273) (21,988,392)

RATE SETTING STATEMENT


(30,653,030) Purchase/construction of Infrastructure Assets (24,908,273) (21,988,392)

(28,927,870) Purchase/construction of Other Capital Assets (25,602,449) (24,427,012)

1,735,600 Proceeds from Sale of Fixed Assets 1,393,725 1,524,272

2,662,550 Developer Contribution Plans: Cash Contribution 10,685,586 8,392,083

7,926,940 Developer Contribution Plans: In Kind Contribution 4,426,823 1,605,599

10,000,000 In Kind Developer Contributions: Other 21,212,317 16,016,647

14,875,450 Capital Grants, Subsidies & Contributions 11,638,364 5,688,354

(17,926,940) Assets Contributed by Developers (25,639,140) (17,622,246)

(40,307,300) Net Capital Outlays (26,793,047) (30,810,695)Debt Management

10,285,000 Proceeds from New Loans 9,482,570 14,070,400

(2,594,095) Repayment of Loans (2,526,393) (1,131,305)

75,430 Contributions to Debt 82,928 58,100

7,766,335 Total 7,039,105 12,997,195Other Funding Transactions

- Profit/(Loss) on Investments 2,176,769 (576,059)

16,635,834 Transfers from Reserves 22,364,253 14,192,056

(20,396,090) Transfers to Reserves (33,154,763) (29,080,792)

(3,760,256) Total (8,613,740) (15,464,795)

3,094,550 Opening Funds 1 July 4,161,618 404,686

169,060 Less Closing Funds 30 June 8,252,517 4,161,618

84,196,260 84,040,980 77,294,753


SHORTFALL TO BE MADE UP FROM GENERAL RATES

80

NOTES TO, AND FORMING PART OF, THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2013


1 Significant Accounting Policies

The significant policies which have been adopted in the preparation of this Financial report are:

(a) Basis of Accounting and Presentation

Critical Accounting Estimates

(b) The Local Government Reporting Entity

The financial report is a general purpose financial report which has been prepared in accordance with

Australian Accounting Standards (as they apply to local governments and not-for-profit entities),

Australian Accounting Interpretations, other authoratative pronouncements of the Australian Accounting

Standards Board, the local Government Act 1995 and accompanying regulations.

The preparation of a financial report in conformity with Australian Accounting Standards requires

management to make judgements, estimates and assumptions that affect the application of policies and

reported amounts of assets and liabilities, income and expenses.

Except for cash flow and rate setting information, the report has also been prepared on the accrual

basis and is based on historical costs, modified, where applicable, by the measurement at fair value of

the selected non-current assets, financial assets and liabilities.

All Funds through which the Council 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, but a separate statement

of those monies appears at Note 21 to these financial statements.

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.

(c) Goods and Services Tax (GST)

(d) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with

banks, other short term highly liquid investments with original maturities of three months or less that

are readily convertible to known amounts of cash and which are subject to an insignificant risk of

changes in value and bank overdrafts.

Bank overdrafts are shown as short term borrowings in current liabilities in the statement of financial

position.

of those monies appears at Note 21 to these financial statements.

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).

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.

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.

81



1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Trade and Other Receivables

(f) Inventories

(g) Fixed Assets

Mandatory Requirement to Revalue Non-Current Assets

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.

Collectibility 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.

Inventories from trading are classified as current even if not expected to be realised in the next 12

months.

Each class of fixed assets is carried at cost or fair value as indicated less, where applicable, any

accumulated depreciation or impairment losses.

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 -

Inventories are valued 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 cost of completion and

estimated costs necessary to make the sale.

(i) that are plant and equipment; and

(ii) that are -

(I) land and buildings; or

(II) infrastructure; and

Land Under Control

government -

(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.

Council has commenced the process of adopting Fair Value in accordance with the Regulations.

Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have

been made in the financial report as necessary.

In accordance with local Government (Financial Management) Regulation 16 (a), the Council is 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 other policies detailed in

this Note.

While they were initially recorded at cost, fair value at the date of acquisition was deemed cost as per

AASB 116.

Consequently, these assets were initially recognised at cost but revalued along with other items of Land

and Buildings at 30 June 2013.

82




(g) Fixed Assets (Continued)

Initial Recognition

Revaluation

All assets are initially recognised at cost. 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 Council includes the cost of all materials used in construction, direct labour on the

project and an appropriate proportion of variable and fixed overheads.

Revalued assets are carried at their fair value being the price that would be received to sell the asset, in

an orderly transaction between market participants at the measurement date.

Revalued assets are carried at their fair value being the price that would be received to sell the asset, in

an orderly transaction between market participants at the measurement date.

For land and buildings, fair value will be determined based on the nature of the asset class. For land and

non-specialised buildings, fair value is determined on the basis of observable open market values of

similar assets, adjusted for conditions and comparability at their highest and best use (Level 2 inputs in

the fair value hierarchy).

With regards to specialised buildings, fair value is determined having regard for current replacement

cost and both observable and unobservable costs. These include construction costs based on recent

contract prices, current condition (observable Level 2 inputs in the fair value hierarchy), residual values

and remaining useful life assessments (unobservable Level 3 inputs in the fair value hierarchy).

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as

appropriate, only when it is probable future economic benefits associated with the item will flow to the

Council and the cost of the item can be measured reliably. All other repairs and maintenance are

recognised as expenses in the statement of comprehensive income in the maintenance are recognised

as expenses in the statement of comprehensive income in the period in which they are incurred.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less any

subsequent accumulated depreciation and accumulated impairment losses, are to be revalued with

sufficient regularity to ensure the carrying amount does not differ materially from that determined using

fair value at reporting date.

For infrastructure and other asset classes, fair value is determined to be the current replacement cost of

an asset (Level 2 inputs in the fair value hierarchy) less, where applicable, accumulated depreciation

calculated on the basis of such cost to reflect the already consumed or expired future economic benefits

of the asset (Level 3 inputs in the fair value hierarchy).

In addition, the amendments to the Financial Management Regulations mandating the use of Fair Value,

imposes a further minimum of 3 years revaluation requirement. As a minimum, all assets carried at a

revalued amount, will be revalued at least every 3 years.

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in

equity. Decreases that offset previous increases in the same asset are recognised against revaluation

surplus directly in equity. All other decreases are recognised as profit or loss.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount

of the asset and the net amount is restated to the revalued amount of the asset.

83





Transitional Arrangement

Early Adoption of AASB 13 - Fair Value Measurement

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

AASB1051 - 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

Those assets carried at cost will be carried in accordance with the policy detailed in the Initial

Recognition section as detailed above.

During the time it takes to transition the carrying value of non-current assets from the cost approach to

the fair value approach, the Council may still be utilising both methods across differing asset classes.

Those assets carried at fair value will be carried in accordance with the Revaluation methodology

section as detailed above.

While the new accounting standard in relation to fair value, AASB 13 - Fair Value Measurement does not

become applicable until the end of the year ended 30 June 2014 (in relation to Council), given the

legislative need to commence using Fair Value methodology for this reporting period, the Council chose

to early adopt AASB 13 (as allowed for in the standard).

As a consequence, the principles embodied in AASB 13 - Fair Value Measurement have been applied to

this reporting period (year ended 30 June 2013).

Due to the nature and timing of the adoption (driven by legislation), the adoption of this standard has

had no effect on previous reporting periods.

(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as

an asset.

While 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

Council.

84





Classification and Capitalisation of Non-Current Assets

$

Land and Buildings -

Furniture and Equipment 1,000

Plant and Equipment 2,000

Infrastructure 20,000

Software 1,000

The City is required to adopt the Fair Value method of reporting on assets in the future. This change is

to be introduced from the 1 July 2013 and phased in over the ensuing three years. There is no provision

in this budget for any adjustments resulting from the current method of reporting at cost. Financial

Management Regulations require that as a minimum, all assets carried at a revalued amount, will be

revalued at least every three years. The financial impact of any adjustments during 2013/14 are

unavailable at the time of this budget.

Non-Current Assets are reported at cost except infrastructure assets and investments which are

reported at independent or City valuation. There is no policy on regular revaluation, except for

infrastructure assets which are revalued every year.

Any gain or loss on disposal of assets is determined as the difference between the written down value of

the asset at the time of disposal and the proceeds from disposal and is included in the operating results

in the year of disposal.

Non-Current Assets are capitalised if they exceed the following City thresholds:

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 class are recognised against

revaluation surplus in equity. All other decreases are recognised in profit or loss.

(h) Investments and Other Financial Assets

Initial Recognition and Measurement

Classification

(i) Financial Assets at fair value through profit and loss

Financial assets at fair value through profit and loss are financial assets held for trading. A financial

asset is classified in this category if acquired principally for the purpose of selling in the short term.

Derivatives are classified as held for trading unless they are designated as hedges. Assets in this

category are classified as current assets.

All investments, except as disclosed in Note 3 are made in accordance with the Trustees Act and the

City's policy on investment of surplus funds.

The City classifies its investments in the following categories: financial assets at fair value through profit

and loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets.

The classification depends on the purpose for which the investments were acquired. Management

determines the classification of its investments at initial recognition and, in the case of assets classified

as held-to-maturity, revaluates this designation at each reporting date.

Financial assets and financial liabilities are recognised when the Council becomes a party to the

contractual provisions to the instrument. For financial assets, this is equivalent to the date that the

Council commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

85




(h) Investments and Other Financial Assets (Continued)

(ii) Loans and Receivables

(iii) Held-to-maturity Investments

(iv) Available-for-sale Financial Assets

Recognition and Derecognition

Available-for-sale financial assets, comprising principally marketable equity securities, are non-

derivatives that are either designated in this category or not classified in any of the other categories.

They are included in non-current assets unless management intends to dispose of the investment within

12 months of the balance sheet date. Investments are designated as available-for-sale if they do not

have fixed maturities and fixed or determinable payments and management intends to hold them for

the medium to long term.

Regular purchases and sales of financial assets are recognised on trade-date – the date on which the

City commits to purchase or sell the assets. Investments are initially recognised at fair value plus

transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets

carried at fair value through profit or loss are initially recognised at fair value and transaction costs are

expensed in the income statement. Financial assets are derecognised when the rights to receive cash

flows from the financial assets have expired or have been transferred and the City has transferred

substantially all the risks and rewards of ownership.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are

not quoted in an active market. They are included in current assets, except for those with maturities

greater than 12 months after the balance sheet date which are classified as non-current assets. Loans

and receivables are included in trade and other receivables in the balance sheet.

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments

and fixed maturities that the City’s management has the positive intention and ability to hold to

maturity. If the City were to sell other than an insignificant amount of held-to-maturity financial assets,

the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity financial

assets are included in non-current assets, except for those with maturities less than 12 months from the

reporting date, which are classified as current assets.

(i) Impairment

An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit

exceeds its recoverable amount. Impairment losses are recognised in the Statement of Comprehensive

Income.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments

recognised in equity are included in the income statement as gains and losses from investment

securities.

In accordance with Australian Accounting Standards the City'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 estimate of the recoverable amount of the asset is made in

accordance with AASB 136 (Impairment of Assets) and appropriate adjustments made.

86



1 SIGNIFICANT ACCOUNTING POLICIES (Continued)

(j) Depreciation of Non-Current Assets

(i)

CapBuildings 50 years

Furniture & Equipment 3 to 10 years

Plant & Equipment 2 to 10 years

(ii) Infrastructure Assets

Roads

Formation Not depreciated

Pavement 30 years

Seal 30 years

Kerbing 30 years

Bridges 25 years

Items of property, plant and equipment, including buildings but excluding freehold land are depreciated

over their estimated useful lives on a straight line basis using rates which are reviewed each reporting

period. Major depreciation periods are:

From the 1 July 2013 all Portable Electronic Communication Devices will be written off over two years.

Motor vehicle sedans are generally changed over at 50,000 KMs or 2 years, whichever is the earlier

date and are depreciated accordingly. However, the City monitors market factors and may change the

vehicles at a more economical time period.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from

the time an asset is completed and held ready for use.

Infrastructure assets are depreciated over their estimated useful lives on a straight line basis using

rates which are reviewed each reporting period. Major depreciation periods are:

Drainage 75 years

Footpaths 50 years

Parks and Reserves 25 years

Other Infrastructure 25 years

(k) Trade and Other Payables

Trade and other payables are carried at amortised cost. They represent liabilities for goods and services

provided to the City prior to the end of the financial year that are unpaid and arise when the City

becomes obligated to make future payments in respect of the purchase of these goods and services.

The amounts are unsecured and are usually paid within 30 days of recognition.

Infrastructure assets are depreciated from the date of acquisition or, in respect of internally constructed

assets, from the time an asset is completed and held ready for use. In accordance with the Local

Government (Financial Management Regulations) 1996 section 16, 'land under roads' is not recognised

as an asset in the Statement of Financial Position.

87




(l) Employee Entitlements

(m) Borrowing Costs

(n) Provisions

Provisions are recognised when:

a) the Council has a present legal or constructive obligation as a result of past events;

b) for which it is probable that an outflow of economic benefits will result; and

c) that outflow can be reliably measured.

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.

Current Provision is made in respect of wages and salaries, annual leave, long service leave, time in lieu

leave and rostered day off leave expected to be settled within 12 months and represents the amount

that the municipality has a present obligation to pay resulting from employees’ services provided to

balance date. The provision has been calculated at nominal amounts based on remuneration rates the

City expects to pay and includes related on-costs.

Non-current Provision is made in respect of other long service leave not yet due for settlement and not

expected to be settled within 12 months. These are measured as the present value of the estimated

future cash outflows to be made by the employer in respect of services provided by employees up to

reporting date. Where the City does not have the unconditional right to defer settlement beyond 12

months, the liability is recognised as a current liability. Liabilities for employee entitlements which are

not expected to be settled within 12 months are discounted using the rates attached to national

government securities at balance date, which most closely match the terms of maturity of the related

liabilities.

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave,

long service leave, time in lieu leave and rostered day off leave.

c) that outflow can be reliably measured.

(o) Leases

With operating leases, where the leaser effectively retains substantially all the risks and benefits

incidental to ownership of the leased items, lease payments are expensed over the lease term.

The City’s rights and obligations under finance leases, which are leases that effectively transfer to the

City all of the risks and benefits incident to ownership of the leased items, are initially recognised as

assets and liabilities equal in amount to the present value of the minimum lease payments. The assets

are disclosed as plant and equipment under lease, and are amortised to expense over the period during

which the City is expected to benefit from use of the leased assets. Lease payments are allocated

between interest expense for the period and the reduction of the lease liability.

Lease liabilities are allocated between current and non-current components. The principal component of

lease payments due on or before the end of the succeeding year is disclosed as a current liability and

the remainder of the lease is disclosed as a non-current liability.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the

end of the reporting period.

88




(p) Joint Venture

(q) Share of Assets in Other Entities

(r) Rates, Grants, Donations and Other Contributions

(s) Bonds Payable

(t) Superannuation

Bonds payable are recognised when the City becomes obliged to make future payments subject to a

specific condition(s) being adhered to by the payee.

The rating and reporting periods coincide. Control over assets acquired from rates in the form of sundry

debtors and cash is obtained when rates are levied or, where earlier, upon receipt of the rates.

Grants, donations and other contributions are recognised as revenues when the City obtains control

over the assets comprising the contributions. Control over granted assets is normally obtained upon

their receipt or upon prior notification that a grant has been secured. The timing of commencement of

control depends upon the arrangements that exist between the grantor and the City. Contributions not

received over which the City has control are recognised as receivable.

The City’s interest in a joint venture has been recognised in the financial statements by including its

share of any assets, liabilities, revenues and expenses of the joint venture within the relevant items

reported in the Statement of Financial Position and Statement of Comprehensive Income. Information

regarding the joint venture is disclosed in Note 19.

The Council contributes to a number of superannuation funds on behalf of employees. All funds to

Contributions are recognised as revenues during the reporting period, where they are obtained on the

condition that they are expended in a particular manner or used over a particular period.

The City’s interest in other entities has been recognised in the financial statement as the relevant share

of the book value of the net assets of the respective entity as disclosed in Note 20.

(u) Current and Non-Current Classification

(v) Rounding

(w) Comparatives

Where required, comparative figures have been adjusted to conform with changes in presentation for

the current financial year.

When the Council applies an accounting policy retrospectively, makes a retrospective restatement or

reclassifies items in its financial statement, a statement of financial position as at the beginning of the

earliest period will be disclosed.

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 Council’s operational cycle.

In the case of liabilities where the Council 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 resale where it is held

as non-current based on Council’s intentions to release for sale.

All figures shown in this budget, other than a rate in the dollar, are rounded to the nearest dollar.

The Council contributes to a number of superannuation funds on behalf of employees. All funds to

which the Council contributes are defined contribution plans.

89




(x) Investment Property

(y) Budget Comparative Figures

(z) New Accounting Standards and Interpretations for Application in Future Periods

Title and Topic Issued Applicable (*) Impact

(i) AASB 9 – Financial

Instruments

December

2009

1 January 2013 Nil – The objective of this Standard is

to improve and simplify the approach

for classification and

AASB 2012 – 6

Amendments to Australian

Accounting Standards –

Mandatory effective date of

September

2012

Deferred AASB 9

until 1 January

2015

measurement of financial assets

compared with the requirements of

AASB 139. Given the nature of the

financial assets of the Council, it is not

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

Council.

Management’s assessment of the new and amended pronouncement that are relevant to the Council,

applicable to future reporting periods and which have not yet been adopted are set out as follows.

Investment Property is held to generate long-term rental yields. All tenant leases are on an arms

length basis. Investment property is carried at fair value, being market value asssuming the highest

and best use permitted by the relevant land use planning provisions or existing public use whichever is

greater. Changes to face value on revaluation to fair value are recorded in the Statement of

Comprehensive Income.

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.

AASB 9 and Transition

Disclosures

anticipated the standard will have any

material effect.

(ii) AASB 2009 – 11


Accounting Standards

arising from AASB 9

December

2009

1 January 2013 Nil – The revisions embodied in this

standard give effect to the

consequential changes arising from

the issuance of AASB 9 which is not

anticipated to have any material

effect on the Council (refer (i) above).

[AASB 1, 3, 4, 5, 7, 101,

102, 108, 112, 118, 121,

127, 128, 131, 132, 136,

139, 1023 & 1038 and

Interpretations 10 & 12)

90




(z) New Accounting Standards and Interpretations for Application in Future Periods (Continued)


(iii) AASB 2010 – 7



arising from AASB 9

(December 2010)

December

2010

1 January 2013 Nil – The revisions embodied in this

standard give effect to the

consequential changes arising from

the issuance of AASB 9 which is not

anticipated to have any material

effect on the Council (refer (i) 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]

(iv) AASB 10 - Consolidated

Financial Statements

AASB 11 - Joint

Arrangements

AASB 12 - Disclosure of

Interests in Other Entities,

AASB 127 -Separate

Financial Statements

AASB 128 - Investments in

Associates and Joint

Ventures

AASB 2011 - 7 Amendments

to Australian Accounting

August

2011

1 January 2013 Nil - None of these, except for AASB

128, are expected to have significant

application to the operations of the

Council. With respect to AASB 128,

where the Council has an interest in a

Joint Venture, the requirements of

AASB 128 supersede those of the

current Joint Venture Standard AASB

131. The new standard more clearly

defines the accounting treatment and

disclosure in relation to it. Due to the

nature of the Joint Venture, it is not

expected to have a significant impact to Australian Accounting

Standards arising from the

Consolidation and Joint

Arrangement Standards

expected to have a significant impact

on the Council.

[AASB 1, 2, 3, 5, 7, 9, 2009-

11, 101, 107, 112, 118,

121, 124, 132, 133, 136,

138, 139, 1023 & 1038 and

Interpretations 5, 9, 16 &

17]

(v) AASB 2011 - 9 Amendments


Standards – Presentation of

Items of Other

Comprehensive Income

September

2011

1 July 2013 The main change embodied in this

standard is the requirement to group

items presented in other

comprehensive income on the basis of

whether they are potentially

reclassifiable to profit or loss

subsequently.

[AASB 1, 5, 7, 101, 112,

120, 121, 132, 133, 134,

1039 & 1049]

It effects presentation only and is not

expected to significantly impact the

Council.

91






(vi) AASB 119 - Employee

Benefits, AASB 2011 - 10



arising from AASB 119

[AASB 1, 8, 101, 124, 134,

1049 & 2012-8 and

Interpretation 14]

September

2011

1 January 2013 The changes in relation to defined

benefit plans contained in this

standard are not expected to

significantly impact the Council nor

are the changes to AASBs in relation

to termination benefits.

(vii) AASB 2012-2 Amendments


Standards – Disclosures –

Offsetting Financial Assets

and Financial Liabilities

[AASB 7 & 32]

June

2012

1 January 2013 Principally amends AASB 7: Financial

Instruments: Disclosures to require

entities to include information that will

enable users of their financial

statements to evaluate the effect or

potential effect of netting

arrangements, including rights of set-

off associated with the entity’s

recognised financial assets and

recognised financial liabilities, on the

entity’s financial position.

This Standard is not expected to

significantly impact on the Council’s

financial statements.

(viii) AASB 2012-3: Amendments


June

2013

1 January 2014 This Standard adds application

guidance to AASB 132: Financial to Australian Accounting

Standards – Offsetting

Financial Assets and

Financial Liabilities

[AASB 132]

2013 guidance to AASB 132: Financial

Instruments: Presentation to address

potential inconsistencies identified in

applying some of the offsetting

criteria of AASB 132, including

clarifying the meaning of “currently

has a legally enforceable right of set-

off” and that some gross settlement

systems may be considered

equivalent to net settlement.

This Standard is not expected to

significantly impact on the Council’s

financial statements.

92






(ix) AASB 2012-5: Amendments


Standards arising from

Annual Improvements 2009-

2011 Cycle

[AASB 1, 101, 116, 132,

134 and Interpretation 2]

June

2012

1 January 2013 Outlines changes to the various

standards and interpretations as

listed. These topics are not currently

relevant to Council, nor are they

expected to be in the future. As a

consequence, this Standard is not

expected to significantly impact on

the Council’s financial statements.

(x) AASB 2012-10:


Accounting Standards –

Transition Guidance and

Other Amendments.

December

2012

1 January 2013 Mainly consequential changes relating

to transition guidance. It is not

expected to have a significant impact

on Council.

[AASB 1, 5, 7, 8, 10, 11,

12, 13, 101, 102, 108, 112,

118, 119, 127, 128, 132,

133, 134, 137, 1023, 1038,

1039, 1049 & 2011-7 and

Interpretation 12]

(*) Applicable to reporting periods commencing on or after the given date.

(aa) Adoption of New and Revised Accounting Standards

During the current year, the Council adopted all of the new and revised Australian Accounting Standards

and Interpretations which became mandatory and which were applicable to its operations.

AASB 2010 – 8

AASB 2011 - 3

AASB 2011 - 13

(ab) Intangible Assets

Easements

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 Intangible Assets , easements are valued on an historical

cost basis, because it is unlikely that an active market in easements exists to allow for fair value

measurement. Due to acquisition of easements at NIL values, no easements have been included in the

financial report.

and Interpretations which became mandatory and which were applicable to its operations.

The standards adopted had a minimal effect on the accounting and reporting practices of the Council as

they were either largely editorial in nature, were revisions to help ensure consistency with presentation,

recognition and measurement criteria of IFRSs or related to topics not relevant to operations.

These new and revised standards were:

The Council also chose to early adopt AASB 13 – Fair Value Measurement as allowed for in the

standard. For futher details with respect to this early adoption, refer to Note 1(g).

93



Actual ($)

2012/13

Actual ($)

2011/12

2 REVENUE AND EXPENSES

A Net Result

The Net Result includes:

(i) Charging as an Expense:

Depreciation

Buildings 1,991,980 1,638,383

Computing 1,351,248 1,333,265

Furniture 375,376 311,058

Plant and Equipment 3,145,669 2,991,513

Vehicles 875,429 837,139

Roads 12,942,787 12,640,489

Drainage 2,475,795 2,025,893

Footpaths 869,157 737,894

Parks and Reserves 2,913,962 2,547,851

Other Infrastructure 248,484 225,776

27,189,887 25,289,261

Auditors Remuneration

Audit of the financial report 27,500 27,440

Audit of Grant Acquittals 2,050 1,200

29,550 28,640

(ii) Crediting as Revenue:

Significant Revenue/ (Expense)

1. General Purpose Funding 2,176,769 (576,089)

The significant revenue in 2012/13 relates to

the increase in fair value of the City’s investments.

(refer to Note 3(B) for further details)

2. Other Property and Services 5,241,301 5,341,666

The significant revenue in both years relates to

unrealised gain from Other Financial Assets, being

increased value of the City’s share in the EMRC.

(refer to Note 20 for further details)

Interest Earnings

Investments

- Reserve Funds 1,455,922 1,680,246

- Other Funds 1,962,647 1,613,089

Other Interest Revenue (refer Note 27(B)) 905,814 881,763

4,324,383 4,175,098

2 B Statement of major program objectives

The City of Swan is dedicated to providing high quality services to the community through various

service-oriented programs. A summary of all financial transactions classified by the statutory

programs is provided in these notes.

94



2 C Description of programs

GENERAL PURPOSE FUNDING

GOVERNANCE

LAW, ORDER AND PUBLIC SAFETY

HEALTH

EDUCATION AND WELFARE

HOUSING

COMMUNITY AMENITIES

RECREATION AND CULTURE

TRANSPORT

ECONOMIC SERVICES

OTHER PROPERTY AND SERVICES

Activities: Construction and maintenance of roads, footpaths, bridge; cleaning and lighting of

streets, traffic lights; depot maintenance.

Objective: To help promote the Municipality and improve its economic wellbeing.

Activities: The regulation and provision of tourism, area promotion, building control, saleyards,

noxious weeds, vermin control, plant nursery and standpipes.

Activities: Private works operations, plant repairs and accounting for various accounts such as

overheads, salaries, wages and materials relating to operations costs. Miscellaneous transactions

are also accounted for under this program.

Council operations as disclosed in this budget encompass the following service orientated

activities/programs:

Objective: To establish and manage efficiently infrastructure and resources which will help the

social well being of the community.

Activities: Maintenance of halls, leisure and aquatic centres, parks and reserves; operation of

libraries.

Objective: To provide effective and efficient transport services to the community.

Objective: To help ensure adequate housing.

Activities: Maintain and administer Elvire Chalets.

Objective: Provide services required by the community.

Activities: Rubbish collection services and disposal of waste. Storm water drainage maintenance

and administration of the town planning scheme.

Activities: Supervision of various by-laws, fire prevention, emergency services and animal control.

Objective: To provide an operational framework for good community health.

Activities: Food and water quality, pest control, immunisation services, child health services and

health education.

Objective: To meet the needs of the community in these areas.

Activities: Management and support for families, children, youth and the aged within the

Community by providing Youth, Aged and Family Centres. Home and Community Aged Care

Program, Junior Council and assistance to schools.

Objective: To collect revenue to allow for the provision of services.

Activities: Rates, general purpose government grants and interest revenue.

Objective: To provide a decision making process for the efficient allocation of scarce resources.

Activities: Administration and operation of facilities and services to members of council; Other

costs that relate to the tasks of assisting elected members and ratepayers on matters which do not

concern specific council services.

Objective: To provide services to help ensure a safer community.

95



2 D CONDITIONS OVER GRANTS/CONTRIBUTIONS

Opening Balance (1) 1/07/2011

Received (2) 2011/12

Grant/Contribution Program/Activity $ $

Grants

Swan Compact Education & Welfare 19,123 -

Yagan Memorial Park Transport 156,426 -

Gnangara Road Transport - 400,000

Military Road Transport - 14,099

Western Swan Home Support – Out Building Education & Welfare 100,995 -

Swan Community Transport – Bus Replacement Education & Welfare - 138,338

Swan Community Care – Equipment CBDC Education & Welfare - 4,576

Community Aged Care – Surplus Education & Welfare - 574,308

Altone Park Pavilion Recreation & Culture 148,035 -

Robinson Road Transport 88,351 -

Swan Regional Park Education & Welfare 173,500 -

Communities for Children Education & Welfare - 175,000

One-Life Project Education & Welfare - 134,250

Bullsbrook Neighbourhood Centre Education & Welfare - 31,558

Kingfisher Park Family Centre Education & Welfare - 41,389

Lanius Park Drain Transport - -

Kid Sport Education & Welfare - 74,000

GrafFix Project Law, Order & Public Safety - -

Swan Volunteers Education & Welfare - -

Small Grant Funded Projects Education & Welfare - -

Yagan Ceremony Education & Welfare - -

Skate Park Youth Outreach Project Education & Welfare - -

Environmental Management System Economic Services - -

Contributions

Midland Brick Trust Contributions Transport 35,275 -

Drainage Contributions Transport 19,258 15,400

Footpath Contributions Transport 132,921 22,727

Malaga Parking Contributions Transport 107,274 161,000

Roadwork Contributions Transport 1,882,544 194,206

Public Art Recreation & Culture - -

Total 2,863,702 1,980,851

96



2 D CONDITIONS OVER GRANTS/CONTRIBUTIONS

Expended (3) 2011/12

Closing Balance 30/6/2012

Received (2) 2012/13

Expended (3) 2012/13

Closing Balance 30/6/2013

$ $ $ $ $

(19,123) - - - -

(156,426) - - - -

- 400,000 2,148,544 (211,597) 2,336,947

(711) 13,388 21,148 (34,536) -

(92,540) 8,455 - (8,455) -

- 138,338 - (138,338) -

(4,469) 107 21,974 (11,752) 10,329

(518,273) 56,035 564,841 (601,599) 19,277

(148,035) - - - -

(88,351) - - - -

(173,500) - - - -

(39,490) 135,510 279,010 (317,556) 96,964

- 134,250 - (134,250) -

(4,191) 27,367 - (11,042) 16,325

(15,490) 25,899 80 (1,733) 24,246

- - 18,000 - 18,000

(50,368) - 143,350 (143,350) -

- - 110,000 (4,171) 105,829

- - 44,252 (10,793) 33,459

- - 11,800 (4,760) 7,040

- - 8,426 8,426

- - 87,071 (87,071) -

- - 22,295 (22,295) -

- 35,275 - - 35,275

34,658 18,500 (9,838) 43,320

- 155,648 - - 155,648

(46,472) 221,802 7,000 (172,081) 56,721

- 2,076,750 197,605 (99,154) 2,175,201

- - 24,800 - 24,800

(1,357,439) 3,463,482 3,728,696 (2,024,371) 5,167,807

97



Actual ($)

2012/13

Actual ($)

2011/12

3 CASH, CASH EQUIVALENTS AND INVESTMENTS

A Cash and Cash Equivalents

Unrestricted Cash and Cash Equivalents 21,388,530 8,834,392

Restricted Cash and Cash Equivalents 56,350,670 41,845,373

77,739,200 50,679,765

The following restrictions have been imposed by regulations

or other externally imposed requirements:

Aged Persons Accommodation Reserve - -

Aged Services Asset Replacement Reserve 13,373 193,597

Ellenbrook Community Facilities Reserve 932,730 1,272,902

Vale Community Reserve 1,339,302 1,628,047

Employee Entitlement Long Service Leave Reserve 1,471,179 644,351

Midland Brick Trust Fund 35,275 35,275

General Insurance Reserve 500,000 954,798

Midland District Drainage Reserve 5,100,326 3,356,981

Plant & Equipment Reserve 3,760,268 3,014,985

Waste Management Reserve 2,716,659 5,966,600

City Asset Replacement Reserve 4,722,376 3,100,630

Hazelmere / Guildford Drainage Reserve 816,283 511,470

Hazelmere Industrial Reserve 963,227 1,689,978

Unspent Footpath Contributions 155,648 155,648

Unspent Roadwork Contributions 2,175,201 2,076,750

Unspent Drainage Contributions 43,319 34,688

Unspent Malaga Parking Contributions 56,721 221,801

Unspent Specific Grants 2,676,841 962,980

Sundry Bonds and Other Deposits 6,230,432 3,213,799

Strategic Development – Land Acquisitions - 810,876

Developers Contributions – Albion 4,703,519 2,707,407

Developers Contributions - Caversham 5,669,727 4,731,101

Developers Contributions - West Swan 12,243,464 4,560,709

Unspent Public Art 24,800 -

56,350,670 41,845,373

3 B Investments

Unrestricted Cash and Cash Equivalents -

Restricted Cash and Cash Equivalents 1,791,678 2,489,864

1,791,678 2,489,864

Financial Assets

At the beginning of the year 2,489,864 6,524,391

Additions - -

Disposals (2,874,956) (3,458,468)

Fair Value Adjustments 2,176,769 (576,059)

Value at end of the year 1,791,677 2,489,864

The following restrictions have been imposed by regulations

or other externally imposed requirements:

Midland District Drainage Reserve 1,539,053 2,211,930

Gravel Pit Rehabilitation Reserve 252,625 277,934

1,791,678 2,489,864

Less Shortfall in Backing of Restricted Funds - -

1,791,678 2,489,864

Volatility in the credit market between 2007 and 2009 resulted in impairment to the value of the City’s

investments. Independent valuations resulted in Unrealised Losses of $5,428,052 in 2007/08 and

$4,517,119 in 2008/09. In 2010/11 the portfolio increased in Fair Value to $6,524,391. In 2011/12

the portfolio decreased by $579,059. As at the 30 June 2013 the City's assessed Fair Value of

investments is $1,791,678 resulting in an Unrealised Profit of $2,176,770.

98



Actual ($)

2012/13

Actual ($)

2011/12

3 C Restricted Funds

Value of Cash and Cash Equivalents 77,739,200 50,679,765

Value of Investments – Financial Assets Available-for-Sale 1,791,678 2,489,864

Total Funds 79,530,878 53,169,629

Restricted Funds – Cash and Cash Equivalents 56,350,670 41,845,373

Restricted Funds – Investments 1,791,678 2,489,864

Total Restricted Funds 58,142,348 44,335,237

Less Shortfall in Backing Restricted Funds - -

Add Surplus in Backing of Assets 21,388,530 8,834,392

Total Funds 79,530,878 53,169,629

4 TRADE AND OTHER RECEIVABLES

Current Receivables

Rates & ESL Receivables 4,005,703 3,982,468

Sundry Debtors 1,815,644 1,687,973

ATO - Input Tax Claimable (Net) 1,095,004 428,639

Self Supporting Loans Receivable 88,391 69,248

Sub-Total Current Receivables 7,004,742 6,168,328

Less: Allowance for doubtful debts (308,045) (172,553)

Total Current Receivables 6,696,697 5,995,775

Non Current Receivables

Pensioner Deferred Rates 1,341,765 1,214,684

City of Wanneroo-MRF - 160,000

Self Supporting Loans Receivable 886,657 988,728

Total Non Current Receivables 2,228,421 2,363,412

Total Receivables 8,925,118 8,359,186

5 INVENTORIES

Materials at Cost 139,428 205,053

Total Inventory 139,428 205,053

6 OTHER ASSETS

Prepaid Motor Vehicle Registration 64,877 61,666

Prepaid Sundry Goods and Services 208,574 139,720

Total Other Assets 273,451 201,386

7 OTHER FINANCIAL ASSETS

Investment in Joint Venture - EMRC (Note 20) 32,715,166 27,473,865

Total Investments 32,715,166 27,473,865

99



Actual ($)

2012/13

Actual ($)

2011/12

8 PROPERTY, PLANT AND EQUIPMENT

Land - Cost - 14,291,356

Independent Valuation 2013 129,544,002 -

129,544,002 14,291,356

Buildings – Cost - 94,049,006


Less Accumulated Depreciation - (16,744,479)

171,918,630 77,304,527

Computing - Cost 9,921,005 10,894,238

Less Accumulated Depreciation (8,294,155) (8,405,624)

1,626,850 2,488,614

Furniture - Cost 4,859,547 4,503,333


1,141,334 1,160,497

Plant - Cost - 20,746,295


Less Accumulated Depreciation - (13,058,114)

8,949,694 7,688,181

Vehicles - Cost - 6,416,322


Less Accumulated Depreciation (2,238,686)

3,867,872 4,177,636

Other Assets - Cost 412,519 415,857

Less Accumulated Depreciation (656) (926)

411,863 414,931

Total Carrying Amount Property Plant & Equipment 317,460,245 107,525,742

Movements in Carrying Amounts

Balance at

Beginning of

the Year

Additions Disposals Depreciation Revaluation/

(Impairment)

Carrying

Amount at

end of the

Year

$ $ $ $ $ $

14,291,356 - - - 115,252,646 129,544,002

77,304,527 18,954,741 (55,015) (1,991,981) 77,706,358 171,918,630

2,488,614 508,016 (18,532) (1,351,248) - 1,626,850

1,160,497 356,214 - (375,376) - 1,141,335

7,688,181 4,239,396 (31,123) (3,145,669) 198,909 8,949,693

4,177,636 1,541,409 (803,469) (875,429) (172,274) 3,867,872

414,931 - (3,068) - - 411,863

107,525,742 25,599,775 (911,208) (7,739,703) 192,985,639 317,460,245

During the year Plant and Equipment, Land and Building were revalued. Plant and Equipment were reviewed

internally using level 3 inputs. Land and buildings were revalued by AVP Valuers for 30 June 2013. For Non-

specialised buildings Level 2 inputs were utilised. For specialised buildings level 3 inputs were used to due to the

specialised nature of the assets

Movement in the carrying amounts of each class of Property, Plant and Equipment

between the beginning and the end of the current financial year.

Land (Level2)

Buildings (Level 2

and 3)

Computing

Furniture

Plant & Equip

(Level 3)

Vehicles

Other Assets

Total

100



Actual ($)

2012/13

Actual ($)

2011/12

9 INFRASTRUCTURE

Roads – Management Valuation 382,426,285 374,125,093

Drainage – Management Valuation 175,440,260 182,180,638

Footpaths – Management Valuation 44,000,593 42,236,880

Parks and Reserves - Cost 80,820,512 77,019,653


56,258,995 55,372,098

Other Infrastructure - Cost 8,043,139 7,384,105


6,365,026 5,954,476

Work in Progress - Cost 16,565,392 11,819,758

Total Carrying Amount Infrastructure 681,056,551 671,688,943

Movements in Carrying Amounts

Balance at

Beginning of

Year

Additions AdjustsDepreciation

ExpenseRevaluation

Carrying

Amount at

the end of

Year

$ $ $ $ $ $

374,125,093 30,961,230 (7,260) (12,942,787) (9,709,992) 382,426,284

182,180,638 7,938,755 - (2,475,795) (12,203,336) 175,440,262

42,236,880 2,441,901 - (869,157) 190,969 44,000,593

55,372,098 3,800,859 - (2,913,962) - 56,258,995

5,954,475 659,034 - (248,484) - 6,365,025

11,819,758 4,745,634 - - - 16,565,392

671,688,942 50,547,413 (7,260) (19,450,185) (21,722,360) 681,056,551

Roads

Drainage

Footpaths

Movement in the carrying amounts of each class of Infrastructure between the

beginning and end of the current financial year.

· Footpath infrastructure assets were revalued by the City as at 30 June 2013 to a depreciated current

replacement cost of $44 million. This resulted in an increase to the asset value of $0.19 million which has been

credited to the Asset Revaluation Reserve. The valuation was made on the basis of the depreciated replacement

cost method. The previous revaluation by the City was at 30 June 2012.

Total

· During the reporting year there were no adjustments due to impairment in the above asset classes.

· Drainage infrastructure assets were revalued by the City as at 30 June 2013 to a depreciated current

replacement cost of $175.44 million. This resulted in an decrease to the asset value of $12.2 million which has

been credited to the Asset Revaluation Reserve. The valuation was made on the basis of the depreciated

replacement cost method. The previous revaluation by the City was at 30 June 2012.

· Road infrastructure assets were revalued by the City as at 30 June 2013 to a depreciated current

replacement cost of $382.4 million. A valuation on the basis of the depreciated replacement cost method as at

the 30 June 2013 resulted in a decrease of $9.72million which has been credited to the Asset Revaluation

Reserve. The previous revaluation by the City was at 30 June 2012.

Parks and

Reserves

Other

Infrastructure

Work in Progress

The City has adopted a policy of re-valuing infrastructure assets (Roads, Drainage and Footpaths) with

sufficient regularity to ensure the carrying amount of each asset is fairly stated at reporting date.

101



Actual ($)

2012/13

Actual ($)

2011/12

10 TRADE AND OTHER PAYABLES

Current

Trade Creditors and Accruals 7,566,803 5,011,969

Sundry Creditors 2,724,304 1,833,285

Creditors Retentions 200,085 157,975

FBT Accrual 174,409 77,658

Salary & Wages Accrual 1,131,590 1,140,810

Emergency Services Levy 734,742 635,527

Sub-Total - Current payables 12,531,933 8,857,224

Non-Current

Sundry Bonds and Other Deposits 6,230,432 3,213,799

Sub-Total - Non-current payables 6,230,432 3,213,799

Total Payables 18,762,364 12,071,023

11 BORROWINGS

Liabilities Current

Debentures (City of Swan) 3,693,303 2,106,739

Debentures (Self Supporting) 102,487 75,425

Sub-Total - Current payables 3,795,790 2,182,164

Loan Liabilities Non-Current

Debentures (City of Swan) 25,898,287 20,453,665

Debentures (Self Supporting) 886,657 988,728

Sub-Total - Non-current payables 26,784,944 21,442,393

Total Long–Term Borrowings 30,580,734 23,624,557

Additional detail on borrowings is provided in Note 26.

12 INCOME IN ADVANCE

Advance Income - 2,148,544

Total Income in Advance - 2,148,544

13 PROVISIONS

Current

Provision for Annual Leave 4,417,245 4,288,484

Provision for Time in Lieu Leave 275,260 209,945

Provision for Rostered Days Off 174,515 156,955

Provision for Long Service Leave 4,229,430 3,756,270

Sub-Total - Current provisions 9,096,450 8,411,654

Non-Current

Provision for Long Service Leave 1,370,306 1,350,311

Sub-Total - Non-current provisions 1,370,306 1,350,311

Total Provisions 10,466,756 9,761,965

In conformity with Australian Accounting Standards Rates received in Advance is treated as income in

the year that it is received under Rates and Grants, Subsidies and Contributions. The $2,148,544

relates to a grant for the 2012/13 financial year received in advance for a specific road project.

102



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

14 RESERVES - CASH/INVESTMENT BACKED

Summary

40,151,040 Opening Balance 41,121,407 26,232,671


18,507,559 Transfers From Accumulated Surplus 31,676,613 27,318,267

(16,635,834) Transfer to Accumulated Surplus (22,364,256) (14,192,056)

43,911,298 Closing Balance 51,911,917 41,121,407

Aged Persons Accommodation

16,766 Opening Balance - 15,266

838 Interest Earnings - 983

- Transfers From Accumulated Surplus - 56,644

- Transfer to Accumulated Surplus - (72,893)

17,604 Closing Balance - -

Aged Services Asset Replacement Reserve

168,863 Opening Balance 193,596 167,694

6,167 Interest Earnings 7,179 17,228

112,944 Transfers From Accumulated Surplus 294,867 8,674

(204,000) Transfer to Accumulated Surplus (482,269)

83,974 Closing Balance 13,373 193,596

Midland District Drainage Development Reserve

4,902,825 Opening Balance 5,568,911 4,685,105



(1,500,000) Transfer to Accumulated Surplus (653,505) (926,137)

5,101,841 Closing Balance 6,639,379 5,568,911

General Insurance Reserve

975,000 Opening Balance 954,798 500,000


532,200 Transfers From Accumulated Surplus 532,489 1,046,515

(300,000) Transfer to Accumulated Surplus (1,034,053) (618,551)

1,254,255 Closing Balance 500,000 954,798

Purpose - The fund was established in 1987/88 to assist with the future maintenance of

Elvire Chalets aged persons accommodation units. Income is from residents in-going

contributions and the net result of Elvire Chalet operations.

Purpose - Since 2001/02, this reserve has accumulated funds for the replacement of

vehicles and other assets used for the provision of Aged Care and related services. Funds are

maintained by an annual transfer of unspent HACC Non-Recurrent capital grants.

Purpose - Since 1991/92 this reserve holds the value of excess on general insurance

claims and any difference between the maximum premium and standard workers

compensation premium paid. An annual transfer of the difference between the standard

premium payable and the actual premium is charged under City Policy.

Purpose - Since 1982/83, this reserve has been used to upgrade the stormwater drainage

system in Bellevue and Midvale. A Specified Area Rate provides funding on an annual basis

and the City has a current policy that requires developers to contribute $59,700 per hectare

towards this fund.

103



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

14 RESERVES - CASH/INVESTMENT BACKED (CONTINUED)

Gravel Pit Rehabilitation Reserve

382,451 Opening Balance 277,934 279,651



- Transfer to Accumulated Surplus (92,110) (110,941)

488,699 Closing Balance 252,625 277,934

Plant & Equipment Reserve

3,116,546 Opening Balance 3,014,985 2,711,470




2,661,898 Closing Balance 3,760,269 3,014,985

Hazelmere/Guildford Drainage Reserve

421,545 Opening Balance 511,470 302,271


278,000 Transfers to Reserves 424,667 272,830

(600,000) Amount Used/Transfer from Reserve (147,445) (96,666)

112,572 Closing Balance 816,282 511,470

Waste Management Reserve

4,542,886 Opening Balance 5,966,600 3,684,312



(4,421,255) Transfer to Accumulated Surplus (5,366,389) (550,569)

3,435,720 Closing Balance 2,716,659 5,966,600

Purpose - After the amalgamation in 1992/93 of the Sanitation Reserve and West Midland

Rehabilitation Reserve, this fund has been used to pay for operations and the development of

the City's sanitation service. Incoming funds are an annual allocation equivalent to the net

'surplus' in the sanitation operation and a plant replacement component.

Purpose - Funds from this reserve are used for the remediation of the existing quarry and

to acquire land for future quarries. An annual allocation is charged for gravel which is

extracted from the quarry and used on the City's works.

Purpose - This reserve finances the purchase of motor vehicles, plant and equipment

associated with the City's works. The reserve is funded by an annual allocation of an amount

equivalent to the plant replacement component which is charged for plant used on all City

works.

Purpose - Since 2005/06, this reserve has been used to upgrade the stormwater drainage

system in Hazelmere and Guildford. A Specified Area Rate provides funding on an annual

basis and the City has a current policy that requires developers to contribute $59,700 per

hectare towards this fund.

104



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12


City Asset Replacement Reserve

3,016,227 Opening Balance 3,100,630 1,265,000

171,634 Interest earnings 149,632 146,494


(1,693,000) Transfer to Accumulated Surplus (1,053,760) (629,707)

4,020,749 Closing Balance 4,722,377 3,100,630

Ellenbrook Community Facilities Reserve

1,205,868 Opening Balance 1,272,902 1,016,818



(775,609) Transfer to Accumulated Surplus (936,999) (176,213)

784,812 Closing Balance 932,730 1,272,902

Vale Community Reserve

1,669,274 Opening Balance 1,628,047 1,510,366




1,364,583 Closing Balance 1,339,302 1,628,047

Employee Entitlements - LSL Reserve

637,024 Opening Balance 644,351 557,024



- Transfer to Accumulated Surplus - -

820,125 Closing Balance 1,471,179 644,351

Purpose - This fund was established in 1994/95 to provide community facilities and

services within the Ellenbrook Estate. Income is from the Ellenbrook Joint Venture and

matching contributions from the City's Municipal Fund.

Purpose - The Vale Community Facilities and Services Reserve fund was established in

July 2005, to provide community facilities and services within the Vale and the region.

Income is from the developers (Multiplex Energy Pty Ltd) of Vale and matching contributions

from City's Municipal Fund.

Purpose - fund long service leave requirements. To be used as required.

Purpose - Created in 2006/07 from the retention of rates funds for the repair,

maintenance and replacement of infrastructure and capital assets.

105



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12


Urban Growth Corridor Sub-Regional Contributions

Brabham - Albion

2,710,745 Opening Balance 2,707,407 -




4,359,579 Closing Balance 4,703,518 2,707,407

5,312,646 Opening Balance 4,731,101 2,212,130


844,540 Transfers From Accumulated Surplus 833,342 2,507,811


6,379,279 Closing Balance 5,669,727 4,731,101

5,398,286 Opening Balance 4,560,709 1,511,304


258,451 Transfers From Accumulated Surplus 7,823,481 5,445,443

(305,171) Transfer to Accumulated Surplus (344,657) (2,476,161)

5,598,347 Closing Balance 12,243,463 4,560,709

- Opening Balance - -

- Interest Earnings - -

- Transfers From Accumulated Surplus - -

- Transfer to Accumulated Surplus - -

- Closing Balance - -

16,337,205 22,616,708 11,999,217

Purpose - Reserve created in 2010/2011 to hold funds and to allow the payment for

infrastructure that relates to sub-regional community facilities for the Swan Urban Growth

Corridor which comprises the Development Contribution Areas of Brabham, Caversham,

Dayton and West Swan West.

Caversham

Dayton - West Swan East

West Swan West

Total Urban Growth Corridor Sub-Regional Contributions

106



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12


Hazelmere Industrial Area Infrastructure Reserve

1,825,462 Opening Balance 1,689,978 824,036




3,421,806 Closing Balance 963,228 1,689,978

Strategic Development - Land Acquisition

791,022 Opening Balance 810,876 2,126,522


- Transfers From Accumulated Surplus 4,108,800 -

- Transfer to Accumulated Surplus (4,925,846) (1,425,500)

830,573 Closing Balance 0 810,876

Purpose - Reserve created in 2010/2011 to hold funds for the acquisition of land in fee

simple to meet the City's strategic development needs.

Purpose - Reserve created in 2010/2011 to upgrade infrastructure in the Hazelmere

Industrial Area. Holds funds collected through a Specified Area Rate matched by a $3 to $1

contribution by the City.

107



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12


Restricted Cash Reserve

Summary Restricted Cash Reserve

3,057,604 Opening Balance 3,487,112 2,863,703

890,000 Transfers From Accumulated Surplus 3,852,046 1,356,314

(772,722) Transfer to Accumulated Surplus (2,171,352) (732,905)

3,174,882 Closing Balance 5,167,806 3,487,112

43,911,298 Total Cash/Investment Backed Reserves 51,911,917 41,121,407

15 REVALUATION SURPLUS

Opening Balance beginning of year 200,438,626 172,985,105

Add revaluation of:

Roads, Streets and Bridges (9,709,992) (7,024,529)

Drainage (12,203,336) 29,148,206

Footpaths 190,969 5,329,844

Land 115,252,646 -

Buildings 77,706,358 -

Plant and Equipment 198,909 -

Closing Balance end of year 371,874,179 200,438,626

Purpose - A reserve established in 1994/95 to reflect the City's restricted cash

commitment in respect to various contributions received for works not yet undertaken. This

reserve is maintained by allocations from the Municipal Fund, equivalent to the value of

contributions received.

Due to a change in legislative requirements Plant and Equipment, Land and Buildings are now

required to be revalued on a three year cycle. This has resulted in a significant increase to

the Revaluation Surplus Account.

The unit rates have been updated for current prices. In relation to the downward valuation of

drainage, durng the year a significant percentage of the City's drainage assets have had the

diameters included. This has enabled a more accurate determination of unit costs based on

the diameter of the pipes required rather than average cost.

All of the reserve accounts are supported by money held in financial institutions and match

the amount shown as restricted cash and restricted investments in Note 3 to this financial

report.

108



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

16 NOTES TO THE STATEMENT OF CASH FLOWS

A Reconcilation of Cash

45,993,611 Cash & Cash Equivalents 77,739,200 50,679,765

B Reconciliation of Net Cash used in Operating Activities

45,406,269 Net Result 67,837,714 47,910,336

(15,538,000) Grants and contributions (11,638,364) (5,688,354)

27,278,600 Add back Depreciation 27,189,887 25,289,261

(720,000) (Profit)/Loss on Disposal of Assets (472,575) (667,973)

(3,400,000) (Profit)/Loss on Other Financial Assets (5,241,301) (5,341,666)

- Unrealised (Profit)/Loss on Investments (2,176,769) 576,059

- (Profit)/Loss on Impairment of Assets (Vehicles) 172,274 -

(17,926,940) Non-cash contributions (25,639,140) (16,016,647)

- Developers contributions - cash (10,685,586) (9,997,682)

(466,935) (Increase)/Decrease in Receivables (808,858) (838,379)

(25,752) (Increase)/Decrease in Inventory 65,625 133,343

3,365 (Increase)/Decrease in Other Assets (72,065) 303,330

912,888 Increase/(Decrease) in Payables 6,592,126 (907,598)

(2,000,000) Increase/(Decrease) in Income in Advance (2,148,544) 2,148,544

302,054 Increase/(Decrease) in Provisions 704,791 971,893

33,825,549 Net cash provided by operating activities 43,679,214 37,874,467

C Undrawn Borrowing Facilities

Credit Standby Arrangements

Credit Card Limit 450,000 450,000

Credit Card at Balance Date - -

Total Amount of Credit Unused 450,000 450,000

Loan Facilities

Loan Facilities - Current 3,795,791 2,182,164

Loan Facilities – Non-Current 26,784,943 21,442,393

Total Facilities in Use at Balance Date 30,580,734 23,624,557

Unused Loan Facilities at Balance Date 478,448 -

Actual ($)

2012/13

Actual ($)

2011/12

17 CONTINGENT LIABILITIES

Contingent Liabilities

Workers Compensation Insurance - Burning Risk 1,588,425 1,446,539

Supreme Court action - Nielson & Loggie vs. City of Swan - 150,000

Total Contingent Liabilities 1,588,425 1,596,539

For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents.

Cash at the end of the reporting period as shown in the Statement of Cash Flows is

reconciled to the related items in the Statement of Financial Position as follows:

There are a number of Public Liability Claims still pending against the City of Swan. The

value of the claims and the probability of success cannot be determined.

109



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

18 CAPITAL AND LEASING COMMITMENTS

A Finance Lease Commitments

B Operating Lease Commitments

· Not later than one year 92,892 96,044

· Later than one year but not later than two years 42,248 77,088

· Later than two years but not later than five years 16,050 15,734

Total operating lease commitments 151,190 188,866

C Capital Expenditure Commitments

19 JOINT VENTURE - ALTONE PARK LEISURE CENTRE

Value of City of Swan Assets in Joint Venture

Non-Current Assets

Buildings 21,414,000 4,302,808

Plant & Equipment 95,563 179,143

Computing 5,946 37,985

Infrastructure 1,996,866 1,037,235

Art 24,022 0

23,536,397 5,557,171

Loans: Non Current Borrowings - -

Net Operating Expenses 1,012,647 1,154,966

Total Share of Assets Employed in Joint Venture

Written Down Value of Assets

The City of Swan is a joint venturer with the City of Bayswater in the development of the

Altone Park Leisure Centre on the corner of Danube and Benara Roads, Beechboro. The

centre was completed in February 1995.

The City of Swan has a 50% interest in the recreation component, 100% interest in the

Aquatic component and a 66.7% in the library component of assets and liabilities of this

facility. The City of Swan is responsible for all operating expenses incurred.

The City’s share of the assets and liabilities committed to the joint venture are included in

the statement of financial position under the following classifications:

There were no finance lease commitments at year end.

Future Operating Lease rentals of Plant & Equipment not provided for in the financial

statements and payable:-

There were no material capital expenditure commitments

at year end.

110



Actual ($)

2012/13

Actual ($)

2011/12

20 INVESTMENT IN JOINT VENTURE - EMRC

EASTERN METROPOLITAN REGIONAL COUNCIL INVESTMENT

32,715,166 27,473,865

Current Assets 20,663,686 18,106,996

Non-Current Assets 16,107,343 11,894,498

Total Assets 36,771,030 30,001,494

Current Liabilities 2,345,481 1,938,293

Non-Current Liabilities 1,710,383 589,336

Total Liabilities 4,055,864 2,527,629

Net Assets 32,715,166 27,473,865

21 TRUST FUNDS

Unclaimed and unidentified monies

Opening balance 30,201 30,201

Receipts - -

Payments - -

Closing balance 30,201 30,201

Public Open Spaces

Opening balance 1,722,038 1,722,038

Receipts 134,000 -

Payments - -

Closing balance 1,856,038 1,722,038

Building and Construction Industry Training Fund

Opening balance 78,176 51,339

Receipts 192,150 78,176

Payments (78,176) (51,339)

Closing Balance 192,150 78,176

Total of monies held in trust 2,078,389 1,830,415

The City has a 35.33% share in the net assets of the Eastern Metropolitan Regional Council

(EMRC) as a member Council.

The value of this investment is based on the City’s share of Net Assets as disclosed in the

Financial Statements of the EMRC for 2012/13.

The City’s investment in the EMRC has increased by $5,241,301 to $32,715,166. In

compliance with AASB139 the net increase is recognised in the Statement of

Comprehensive Income as an Unrealised Gain from Other Financial Assets

Represented by share of Joint Venture

entity’s financial position:

City's portion of EMRC's net assets

Total Investment in the Joint Venture

Funds over which the City has no control and which are not included in the financial

statements are as follows:

111



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

22 TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

Program Description

General Purpose Funding 5,347,468 5,197,151

Governance 1,869,294 1,839,896

Law, Order and Public Safety 2,445,352 2,668,779

Health 3,680,319 326,533

Education and Welfare 15,508,434 5,328,665

Housing 84,000 1,862

Community Amenities 5,185,783 4,439,132

Recreation and Culture 262,907,151 111,274,642

Transport 611,802,335 606,975,610

Economic Services 2,557,474 2,519,450

Other Property and Services 75,911,261 32,020,759

Unallocated 132,801,965 96,031,339

Total Assets 1,120,100,836 868,623,818

23 DISPOSALS OF ASSETS - 2012/13 FINANCIAL YEAR

DISPOSED ASSETS BY ASSET CLASS

Budget Actual Budget Actual Budget Actual$ $ $ $ $ $

Buildings 55,015 - (55,015)

Computing 18,532 10,398 (8,134)

Land -

Furniture -

Plant & Equip 1,015,600 31,123 1,735,600 461,016 720,000 419,950

Vehicles 803,469 922,311 118,842

Other Assets 3,068 - (3,068)

Parks Reserves -

1,015,600 911,207 1,735,600 1,393,725 720,000 472,575

24 NON CASH CONTRIBUTIONS

Non Cash Contributions by Asset Class

13,296,250 Roads 15,696,887 9,293,883

- Drainage 6,761,409 4,165,986

- Footpaths 1,746,345 1,243,557

4,630,690 Parks & Reserves (& merged improvements) 1,434,499 1,313,221

17,926,940 Total 25,639,140 16,016,647

Non-cash Contributions By Program

7,926,940 Governance 4,426,823 -

- Community Amenities 603,723 -

- Recreation and Culture 20,608,594 1,313,221

10,000,000 Transport - 14,703,426

17,926,940 Total Non Cash contributions 25,639,140 16,016,647

Non cash contributions are disclosed separately as non-operating revenue in the Statement

of Comprehensive Income to bring to account infrastructure assets and land acquired from

developers. The value of non cash contributions is detailed below.

Net Book Value Sale Price Profit (Loss)

112



2013 2012 2011

25 FINANCIAL RATIOS

Current Ratio 1.19:1 0.73:1 0.67:1

Asset Sustainability Ratio 0.81 0.80 0.54

Debt Service Cover Ratio 12.38 20.83 20.17

Operating Surplus Ratio 0.15 0.14 0.08

Own Source Revenue Coverage Ratio 1.09 1.05 1.00

The above ratios are calculated as follows:

Current Ratio

Asset Sustainability Ratio

depreciation expense

Debt Service Cover Ratio

principal and interest

Operating Surplus Ratio

own source operating revenue

Own Source Revenue Coverage Ratio

operating expense

ADDITIONAL FINANCIAL RATIOS

2013 2012 2011

Asset Renewal Funding Ratio 1.25 NA NA

Asset Consumption Ratio 0.64 NA NA

The above ratios are calculated as follows:

Asset Consumption Ratio

current replacement cost of depreciated assets

Asset Renewal Funding Ratio

N/A - In keeping with amendments to Local Government (Financial Management) Regulation 50,

comparatives for the two preceding years (being 2012 and 2011) have not been reported as

financial information is not available.

current assets minus restricted assets

current liabilities minus liabilities associated with restricted assets

NPV of planned capital renewals over 10 years

capital renewal and replacement expenditure

annual operating surplus before interest and depreciation

operating revenue minus operating expense

own source operating revenue

depreciated replacement cost of assets

NPV of required capital expenditure over 10 years

The following information relates to those ratios which only require an attestation they have been checked

and are supported by verifiable information.

113



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

26 BORROWINGS

A Loan Liabilities - Debentures

Current

Loan Liability (City of Swan) 3,693,303 2,106,739

Loan Liability (Self Supporting) 102,487 75,425

3,795,790 2,182,164

Non-Current

Loan Liability (City of Swan) 25,898,287 20,453,665

Loan Liability (Self Supporting) 886,657 988,728

26,784,944 21,442,393

Total Liability 30,580,734 23,624,557

Reconcilation of Loan Liabilities - Debentures

City of Swan

22,430,290 Opening balance 22,560,404 9,569,385

10,285,000 Loans raised 9,482,570 14,070,400

(2,518,665) Less: Principal repaid (2,451,385) (1,079,381)

30,196,625 Closing Balance 29,591,589 22,560,404

Self Supporting

1,057,890 Opening balance 1,064,153 1,116,077

- Loans raised - -

(75,340) Less: Principal repaid (75,009) (51,924)

982,550 Closing Balance 989,144 1,064,153

31,179,175 Total Liability 30,580,734 23,624,557

B Principal Paid By Program

Principal Principal

Outstanding New Paid Outstanding

30/06/2012 Loans 2012/13 30/06/2013

$ $ $ $

Program Description

Governance 3,930,645 - 428,172 3,502,473

Recreation & Culture 5,142,257 4,132,570 511,141 8,763,686

Transport 6,934,840 - 602,288 6,332,552

Housing - - - -

Parks & Reserves - - - -

Other Property Services 7,616,815 5,350,000 984,793 11,982,022

TOTALS 23,624,557 9,482,570 2,526,393 30,580,734

C Interest On Debentures Paid By Program

Program Description

205,540 Governance 203,927 128,962

421,910 Recreation & Culture 344,070 295,955

419,390 Transport 363,867 325,822

424,660 Other Property Services 476,970 153,338

1,471,500 Interest Paid 1,388,833 904,077

114



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

26 BORROWINGS (CONTINUE'D)

D Unspent Loans

478,448 -

E New Debentures

Particulars/

PurposeActual ($) Budget ($)

Institution

and Loan

type

Term

(years)

Total

interest and

charges

Interest

Rate

Amount

used

Loan 190 -

Purchase of

Building

3,100,000 3,100,000 WATC -

Debenture

10 668,323 4.83% 3,100,000

Loan 191 -

Purchase of

Land

2,000,000 - WATC -

Debenture

3 110,155 4.06% 2,000,000

Loan 192-

Aveley

Community

Centre

997,570 997,570 WATC -

Debenture

10 222,558 4.05% 997,570

Loan 194 -

Percy Cullen

Pavilion

2,675,000 2,675,000 WATC -

Debenture

10 596,794 4.99% 2,574,079

Loan 195 -

Swan City

Youth Centre

460,000 460,000 WATC -

Debenture

10 102,626 4.99% 228,455

Loan 196 -15

Keane Street

Upgrade

250,000 250,000 WATC -

Debenture

10 55,775 4.99% 104,018

There were unspent loan funds as at 30 June 2013.

On the 30 June 2012 there were no unspent loans.

115



27 RATES INFORMATION

A Reconcilaton of Rates to General Purpose Income

Budget ($)

2012/13 GROSS RENTAL VALUES Cents in $

No of

assessments

Rateable

Value $000

Actual ($)

2012/13

41,285,922 Residential 6.614 37,460 647,185 42,804,832

19,472,527 Commercial/Industrial 8.094 2,831 251,382 20,346,891

4,382,818 City Centre 8.093 250 54,246 4,390,109

3,830,172 Heavy Industry 13.227 52 33,037 4,369,768

- Storage Units 8.094 - - -

2,000,000 Interim & Back Rates (824,302)

70,971,439 GRV Rates levied 40,593 985,850 71,087,298

GROSS RENTAL VALUES -

Minimum rates $

2,581,875 Residential 765 3,555 27,003 2,719,575

650,025 Commercial/Industrial 1,215 467 5,277 567,405

70,470 City Centre 1,215 56 608 68,040

1,470 Heavy Industry 1,470 1 10 1,470

4,040 Storage Units 505 76 212 38,380

- Interim & Back Rates (38,914) 3,307,880 GRV minimum Rates 4,155 33,111 3,355,956

74,279,319 Total GRV Rates 44,748 1,018,961 74,443,253

Unimproved Values

UNIMPROVED VALUES Rate in $

No of

assessments

Rateable

Value $000

Actual ($)

2012/13

3,560,570 Rural 0.290 1,430 1,182,812 3,430,155

2,453,771 Special Area 0.291 1,589 805,945 2,345,300

297,547 UV Commercial 0.411 31 70,525 289,858

805,480 Landscape 0.276 453 259,280 715,613

1,152,018 0.206 509 510,324 1,051,268

- Interim & Back Rates 14,051

8,269,386 UV Rates levied 4,012 2,828,886 7,846,244

UNIMPROVED VALUES -

Minimum rates $

32,895 Rural 765 42 7,766 32,130

17,595 Special Area 765 25 4,250 19,125

2,295 UV Commercial 765 3 43 2,295

3,060 Landscape 765 4 750 3,060

10,710 Farmland 765 15 4,123 11,475

- Interim & Back Rates 122 66,555 UV minimum Rates 89 16,932 68,207

8,335,941 Total UV Rates 4,101 2,845,818 7,914,451

Total Rates Levied 82,357,704

Farmland

* Budget provisions for Interim and back rates are included within individual budget allocations

116



Budget ($)

2012/13 Description Reference

Actual ($)

2012/13

Actual ($)

2011/12

27 A Reconciliation of Rates to General Purpose Income (Continued)

82,615,260 TOTAL RATES LEVIED 82,357,704 75,680,231

1,590,000 Plus Ex Gratia Rates 1,692,736 1,620,360

(9,000) Less: Rates Written-Off (9,460) (5,838)

84,196,260 TOTAL MADE UP FROM GENERAL RATES 84,040,980 77,294,753

1,660,000 Plus Specified Area Rates 1,741,935 1,596,729

- Plus Future Years Rates Received in Advance 415,260 212,691

85,856,260 TOTAL RATES 86,198,175 79,104,173

General Purpose Grant

1,050,000 General (Untied) Grant 2,220,105 2,685,109

1,200,000 General (Untied) Road Grant 2,303,919 2,906,439

Other General Purpose Income

60,000 Pensioners' Deferred Rates interest grant 48,703 54,172

450,000 Penalty Interest: Rates 536,825 536,681

400,000 Instalment Interest: Rates 368,989 345,082

3,000,000 Interest on Investments 3,413,655 3,286,856

347,000 Miscellaneous 519,123 380,176

92,363,260 TOTAL GENERAL PURPOSE INCOME 95,609,494 89,298,688

B Rating Information

Rates concessions

Urban and Swan Valley farmland concession 429,153 522,440

5,680 Strata titled unit concession 58,520 5,320

The amount made up from general rates is reconciled to the

General Purpose Income shown in the Statement of

Comprehensive Income.

An urban farmland concession and a Swan Valley farmland

concession were on offer to all properties conducting farmland

activities consistent with the relevant provisions of City policy.

The concession is an incentive for ratepayers to maintain the

district's rural character.

A rating concession of 58% of the minimum rate for industrial

properties was provided to strata titled storage units, which

were appropriately zoned and used. The concession

recognises the majority of the strata units occupy small

areas; and generate little and infrequent use of the City's

facilities and services.

A rating concession of 100% applied to all privately leased

and licensed agreements at Whiteman Park; for which the

City provides no services. The Valuer General has not

provided valuations and the Water Corporation does not rate

these properties. 20 of the 26 agreements are with exempt

community based groups. The other properties are small in

scale and related to the tourist trade which enhances the

attraction of the park.

117



Budget ($)

2012/13 Description

Actual ($)

2012/13

Actual ($)

2011/12

27 B Rating Information (Continued)

Rates write offs

By City delegation or resolution the following was written off:

- Rates written off 9,460 5,838

Interest Charges

During the year the City charged interest on payment of rates as follows:

Interest rate for late payment of rates 11% 11%

Interest on rate instalments 5% 5%

850,000 Amount levied as interest charges 905,814 881,763

Rates Instalments

Early Payment to qualify for prize draw

Four Instalments

1st payment

2nd payment

3rd payment

4th payment

Discount on Rates

28 SPECIFIED AREA RATE - 2012/13 FINANCIAL YEAR

Rate in

$

Basis of

Rate in

$

Rateable

Value

Rate

Revenue

Budget Rate

Revenue

Applied To

Costs

Budget

Application

To Costs

Cents $ $ $ $ $

Midland

District

Drainage 0.0051 GRV 170,301,604 964,984 950,000 964,984 950,000

Guildford

District

Drainage 0.0051 GRV 39,574,249 214,973 210,000 209,869 156,059

Hazelmere

Industrial

Drainage 0.0253 GRV 22,038,842 561,978 500,000 434,611 260,116

231,914,695 1,741,935 1,660,000 1,609,464 1,366,175

29 SERVICE CHARGES - 2012/13 FINANCIAL YEAR

Amount

of

Charge

Number of

Properties

Revenue

Raised

Budget

Revenue

Applied To

Service

Costs

Budget

Application

To Costs

$ $ $ $ $

150 1,587 234,747 228,000 204,325 228,000

100 7,500 737,727 714,100 713,159 714,100

250 9,087 972,474 942,100 917,484 942,100

No discount is offered for early payment of rates under

section 6.46 of the Local Government Act 1995.

Unspent funds were transferred to the appropriate reserve during the financial year. Refer to Note 14.

The Vines Security

Ellenbrook Security

A range of formal rate instalments were offered to ratepayers

as follows:

Thursday, 7 March 2013

Monday, 27 August 2012

Monday, 29 October 2012

Monday, 7 January 2013

Monday, 27 August 2012

118



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

30 FEES AND CHARGES

Fees And Charges By Program

Program Description

347,000 General Purpose Funding 519,123 380,176

3,150 Governance 3,754 2,429

292,180 Law Order & Public Safety 369,792 292,006

281,000 Health 315,373 237,225

264,000 Education & Welfare 249,151 244,990

50,000 Housing 62,085 56,644

15,411,500 Community Amenities 15,663,258 14,613,287


737,960 Transport 807,637 656,738

1,961,000 Economic Services 1,554,454 1,532,264

1,607,650 Other Property & Services 1,842,826 882,004

26,675,100 Total Fees & Charges 26,914,614 23,902,265

31 GRANT REVENUE

By Nature or Type:

7,123,320 Operating Grants, Subsidies and Contributions 9,764,630 10,285,596

14,875,450 Non-Operating Grants, Subsidies and Contributions 11,638,364 5,688,354

17,926,940 Non-Operating In Kind Contributions from Developers 25,639,140 16,016,647

2,662,550 Developers Contributions 10,685,586 9,997,682

42,588,260 57,727,720 41,988,279

By Program:

2,310,000 General Purpose Funding 4,572,727 5,645,720

10,612,490 Governance 15,136,409 10,022,000

566,890 Law, Order and Public Safety 705,917 599,141

4,009,930 Education and Welfare 4,481,275 3,944,255

- Community Amenities 22,295 22,727

500 Health - -

5,394,570 Recreation and Culture 3,355,246 3,019,963

19,693,880 Transport 29,436,236 18,708,673

- Economic Services - 25,000

- Other Property and Services 17,616 800

42,588,260 57,727,720 41,988,279

32 COUNCILLOR FEES AND ALLOWANCES

178,250 Councillor Allowances 182,326 179,033

60,000 Telephone / Internet 57,173 55,665

125,000 Conferences / Training 53,482 29,756

5,000 Uniforms - 117

2,500 Child Minding 540 -

1,000 Wages - -

95,000 Travel / Mileage 127,737 85,309

466,750 Total Members Expenses 421,258 349,880

33 NUMBER OF EMPLOYEES

Total employees as at balance date 582 589

The following fees, expenses and allowances were paid to the Mayor and City members.

Grants, subsidies and contributions are included as operating revenues in the Statement of

Comprehensive Income:

119



Budget ($)

2012/13

Actual ($)

2012/13

Actual ($)

2011/12

34 Superannuation

Superannuation Contributions Paid 5,192,809 4,915,328

35 WESTERN AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION

WALGA Building Trust

Total Equity provided by WALGA (620 Units) 12,193,785 12,507,880

City of Swan's Equity (8 Units) 157,339 161,392

36 TOWN PLANNING SCHEME 14

Income 59,829 -

Expenditure (59,829) -

Net Surplus (Deficit) - -

Liabilities

Creditors 432,269 458,357

Creditors Retention - -

Total Liabilities 432,269 458,357

Assets

Bank 794,489 487,089

Scheme Debtors Net of Sale Proceeds (362,220) (28,732)

Total Assets 432,269 458,357

This note is provided for disclosure purposes only. None of the amounts shown below are

recorded in the City’s Financial Statements.

2. The recouping of sewer headwork costs from the Water Corporation based upon

agreements.

The City of Swan has no equity in the scheme and all scheme costs are secured by a charge

over land within the scheme area.

The City of Swan complies with the minimum obligations under federal law and contributes in

respect of its employees to the WA Local Government Superannuation Plan.

The City contributes in respect of certain of its employees to an accumulated benefit

superannuation fund established in respect of all Municipalities in the State. In accordance

with statutory requirements, the City contributes to the WA Local Government Superannuation

Plan amounts nominated by the City. As such, assets are accumulated in the plan to meet

member’s benefits as they accrue. For this reason no liability of the City has been recognised

as at the reporting date in respect of superannuation benefits for its employees.

Town Planning Scheme No. 14 is a guided scheme designed to provide a coordinated

approach to the planning and development of industrial land to the east of the existing Malaga

Industrial area. Stage 1 of the scheme works was completed in August, 1996 and stage 2 of

the scheme works is almost complete. The Stage 2 works complete the Scheme however

there are outstanding issues to be resolved before consideration can be given to winding up

the Scheme. The outstanding issues are: 1. A Court determination was in favour of the Environmental Protection Authority (EPA) in

a matter involving the EPA, the City of Swan and a landowner. The landowner is negotiating

with the EPA to subdivide/develop all or part of his property.

This note discloses the equity the City has in WALGA as a consequence of a contribution

towards the cost of purchasing Local Government House. The total contribution by all Councils

towards the cost of the WALGA building was $582,000 of which the City of Swan contributed

$8,000. There are 620 units in the Local Government House Trust, 8 of which are held by the

City of Swan.

The City has not capitalised its share in WALGA. The original contribution of $8,000 was

treated as an expense.

120



Description Reference

37 FINANCIAL RISK MANAGEMENT

2013 2012 2013 2012

$ $ $ $

Financial Assets

Cash and Cash

Equivalents

77,739,199 50,679,765 77,739,199 50,679,765

Receivables /

Other Assets

9,198,569 8,560,587 9,198,569 8,560,587

Investments

Available For

Sale

1,791,679 2,489,864 1,791,679 2,489,864

Other Financial

Assets

32,715,166 27,473,865 32,715,166 27,473,865

121,444,613 89,204,081 121,444,613 89,204,081

Financial

Liabilities

Payables /

Income in

Advance

18,762,364 14,219,580 18,762,364 14,219,580

Borrowings 30,580,734 23,624,557 27,292,005 20,184,981

49,343,098 37,844,137 46,054,369 34,404,561

The City’s activities expose it to a variety of financial risks including price risk, credit risk,

liquidity risk and interest rate risk. The City’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.

The City does not engage in transactions expressed in foreign currencies and is therefore not

subject to foreign currency risk.

Fair ValueCarrying Value

Fair value is determined as follows:

Cash and Cash Equivalents, Receivables, Other Assets, Other Financial Assets,

Payables, Income in Advance – estimated to be the carrying value which

approximates net market value.

Borrowings – estimated future cash flows discounted by the current market

interest rates applicable to assets and liabilities with similar risk profiles.

Financial Assets Available for Sale – based on market valuations and provided

by independent financial advisors.

121




37 FINANCIAL RISK MANAGEMENT (CONTINUED)

A Cash And Cash Equivalents

Financial Assets Available-for-Sale

2013 2012

$ $

7,953,088 3,884,560

7,953,088 3,884,560

644,709 532,057

644,709 532,057

The City’s objective is to maximise its return on cash and investments while maintaining an

adequate level of liquidity and preserving capital. The finance area manages the cash and

investments portfolio with the assistance of independent advisers. The City has an investment

policy and the policy is subject to review by the City. An Investment Report is provided to

Council on a monthly basis setting out the make-up and performance of the portfolio.

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.

Cash and investments are also subject to interest rate risk – the risk that movements in

interest rates could affect returns.

Another risk associated with cash and investments is credit risk – the risk that a contracting

entity will not complete its obligations under a financial instrument resulting in financial loss to

the City.

The City manages these risks by diversifying its portfolio and only purchasing investments

with high credit ratings or capital guarantees. The City seeks advice from independent

advisers (where applicable) before placing any cash and investments.

Impact of a 10% movement in price of cash

equivalents and investments- Equity

- Statement of Comprehensive Income

Impact of a 1% movement in interest rates on

cash and investments- Equity

- Statement of Comprehensive Income

122





B Receivables

2013 2012

- Current 35% 33%

- Overdue 65% 67%

- Current 83% 84%

- Overdue 17% 16%

2013 2012

$ $

30-60 days - -

60-90 days - -

120+ days 308,045 172,553

308,045 172,553

Opening Balance 172,553 281,250

Additions 156,312 128,998

Write Offs (20,820) (237,695)

Closing Balance 308,045 172,553

Percentage of Rates and Annual charges

Percentage of Other Receivables

Analysis of the Impaired Assets

Movement in the Provision for Doubtful Debts

The City’s major receivables comprise rates and annual charges and user charges and fees.

The major risk associated with these receivables is credit risk – the risk that the debts may

not be repaid. The City manages this risk by monitoring outstanding debt and employing debt

recovery policies. It also encourages ratepayers to pay rates by the due date through

incentives.

Credit risk on rates and annual charges is minimised by the ability of the City to recover these

debts as a secured charge over the land – that is, the land can be sold to recover the debt.

The City is also able to charge interest on overdue rates and annual charges at higher than

market rates, which further encourages payment.

The level of outstanding receivables is reported to the City monthly and benchmarks are set

and monitored for acceptable collection performance.

The City makes suitable provision for doubtful receivables as required and carries out credit

checks on most non-rate debtors.

There are no material receivables that have been subject to a re-negotiation of repayment

terms.

The profile of the City’s credit risk at balance date was:

Analysis of Receivable Overdue but Not Impaired

123





C Payables and Borrowings

2013

Due within 1

Year

Due between

1 and 5

Years

Due after 5

Years

Total

Contractual

Cash flows

Carrying

values

$ $ $ $ $

Payables 12,531,933 6,230,432 - 18,762,364 18,762,364

Borrowings 5,362,942 16,035,813 17,535,684 38,934,439 30,580,734

17,894,874 22,266,245 17,535,684 57,696,803 49,343,098

2012

Due within 1

Year

Due between

1 and 5

Years

Due after 5

Years

Total

Contractual

Cash flows

Carrying

values

$ $ $ $ $

Payables 8,857,237 3,213,799 - 12,071,036 12,071,036

Borrowings 3,423,530 12,197,240 15,798,891 31,419,661 23,485,278

12,280,767 15,411,039 15,798,891 43,490,697 35,556,314

Payables and borrowings are both subject to liquidity risk – that is the risk that insufficient

funds may be on hand to meet payment obligations as and when they fall due. The City

manages this risk by monitoring its cash flow requirements and liquidity levels and

maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities

drawn upon if required.

The contractual undiscounted cash flows of the City’s Payables and Borrowings are set out in

the Liquidity Sensitivity Table below:

124





C Payables and Borrowings (Continued)

Year ended

30 June 2013 %

Up to 1 to 5 Years Over 5 Total

1 Year Years

$ $ $ $

Borrowings

Fixed rate - - - -

Debentures 549,711 1,883,240 28,147,783 30,580,734 5.23%

Weighted average effective interest rate

6.12% 4.22% 5.30%

Year ended

30 June 2012 %

Up to 1 to 5 Years Over 5 Total

1 Year Years

$ $ $ $

Borrowings

Fixed rate

Debentures - 988,831 22,496,447 23,485,278 5.56%

Weighted average effective interest rate

- 6.13% 5.45%

38 EVENTS AFTER THE REPORTING PERIOD

Borrowings are also subject to interest rate risk – the risk that movements in interest rates

could adversely affect funding costs. The City manages this risk by borrowing long term and

fixing the interest rate to the situation considered the most advantageous at the time of

negotiation.

The following table sets out the carrying amount, by maturity, of the financial instruments

exposed to interest rate risk:

Subsequent to year-end, the State Government has announced the proposed amalgamation of

some Metropolitan Councils in Western Australia effective from 1 July 2015. The impact on the

City of Swan has not yet been quantified.

Weighted Average effective interest rate

Weighted Average effective interest rate

125


SUPPLEMENTARY INFORMATION TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

EMPLOYEE REMUNERATION

2013 2012

Annual salary entitlements

7 9

5 7

7 4

5 4

4 -

- -

- -

- 3

4 -

- -

- -

- 1

- -

1 -

TOTAL 33 28

Shown below in bands of $10,000, is the number of employees of the City entitled to an annual

salary of $100,000 or more. Based on guidance from the DLGRD, 'annual salary' only includes the

cash component of any remuneration.

Employees entitled to an annual salary of $100,000 to $109,999














126

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