2012_soe_annualreport

Shire of Esperance2011/2012 Annual Report

2 Shire of Esperance 2011/2012 Annual Report

Our Vision

The spirit of Esperance is unique, we take pride in being a creative, caring, and

supportive community.

We live in a diverse and dynamic region with outstanding opportunities for all.

As custodians, we are committed to protect our spectacular natural environment.

Esperance has a sense of community ownership with a commitment to

determine its own direction.

We make it happen!

Mission

The Shire of Esperance will listen to its people and provide services in a

caring, responsive and consultative manner through Councillors and staff

that are well equipped to meet community needs, and show leadership in

development at regional and higher levels.

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Contents

Shire President’s Report 4

CEO’s Report 6

Your Councillors 8

Executive Team 9

Executive Services 10

Community Services 14

Engineering Services 34

Development Services 36

Corporate Services 40

Annual Financial Report 47


Shire Presidents Report

It is with a great deal of pleasure that I present to you the Shire of Esperance Annual Report for 2011/2012.

Council elections held in October 2011 installed a new Council which I believe has operated as a strong dynamic team during the year. I wish to sincerely thank my fellow Councillors, the CEO and Council staff for their dedicated contribution to enable Council to achieve what it has over the 2011/2012 year. We are fortunate to have such an enthusiastic and professional team and I thank each and every member of our Council for their contribution.

As we reflect on the year I would describe it as a year of steady achievement punctuated with some highs and a few lows. We have had a steady stream of good news stories which is always guaranteed to attract a politician or two. It’s even better if they come bearing a cheque which we have been able, on each occasion, to put to good use.

The year has been dominated by Esperance being selected as a SuperTown which presented an opportunity to compete for a share of an $85m pool earmarked for the nine SuperTowns. The Council worked frantically to prepare business cases for our prioritised programs. A collaborative effort and pooling of resources with the Goldfields Esperance Development Commission (GEDC) and Esperance Chamber of Commerce and Industry (ECCI) produced four very professional submissions. These were assessed by the SuperTowns panel and Esperance was very fortunate to receive the requested funding on three of the four projects.

The number one community endorsed project which received $12.65m was the Esperance Waterfront Project (formerly called the Esperance Foreshore Protection and Enhancement project).

“As we reflect on the year I would describe it as a year of steady achievement punctuated with some highs and a few lows.“

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In addition Council has produced and endorsed, in conjunction with the GEDC and ECCI, an interim Growth Plan for the South East Region which will provide direction and strategic priorities for the region for the next twenty years. The final Growth Plan will be completed within the next few months.

The Shire has continued its good work in the asset management arena and now has a number of maintenance or management plans in place to preserve the value of our community assets and extend their useful life span. Ongoing asset management plans will continue into the future until such time as we have a long term financial plan for all our community assets.

The Council has a goal to provide quality services to the community at an affordable cost. With increasing utility and other costs, this has not been a simple exercise. In accordance with the community’s expectations, Council has prioritised where to spend its resources to achieve the most cost effective outcome and still provide a quality level of service.

In closing I wish to acknowledge the input and interest of our local community in all these developments within our wonderful town. For Esperance to achieve and continue to achieve a team effort is required involving the community, Industry groups, Shire staff, Councillors and our local Politicians. I am very pleased to say, because of all these ingredients Esperance is a SuperTown and will continue to be a safe and wonderful environment to visit or more importantly, to raise a family in.

I would like to thank our CEO Mal Osborne for his guidance, leadership and dedication during the past 12 months.

I conclude by saying that 2011/2012 was a watershed year and 2012/2013 will be even better.

Malcolm Heasman Shire President.

I know the community of Esperance will be delighted to see this long awaited project commence and hopefully resolve the erosion and other issues concerning on our foreshore. The Waterfront project will extend beyond the seawall and also include foreshore landscaped park land and amenity which will link the town centre to our foreshore. Our landscape planners were appointed in June 2012 and we look forward to community input in the finalisation of these project plans.

Whilst on the subject of infrastructure development there is a lot either happening or about to happen. The State and Federal funded Port Access Corridor project has commenced and on completion will make transport movement, not only to and from the Port, but traversing the railway line much more user friendly. In addition the High School hostel and new Esperance Primary School developments have commenced. Esperance Hospital upgrades have been announced and we are exhausting all avenues to obtain funding for the Greater Sports Ground development.

The Local Government Minister introduced the Integrated Planning and Reporting Framework requiring Council to prepare medium and long term planning documents for implementation. A refinement of our Draft Strategic Community Plan which summarises our community long term vision, values, priorities and aspirations for the next ten years is near completion and will be circulated for comment to the community early in the next financial year. We continue working on our Corporate Business Plan (four year plan) so that both of these plans will be ready for implementation by the deadline date of June 2013.


CEO’s Report

The 2011/2012 financial year has been especially rewarding for the Shire of Esperance due to the number of significant projects and opportunities that have become available to the Esperance community. This

was achieved by the hard work and commitment of Council and the staff, by the contributions of our community organisations, by partnerships with government agencies and the active participation of our community members.

The October 2011 Local Government Elections saw a substantial change to the makeup of the Council. A complete spill of all 11 existing Councillors occurred, with 9 positions contested at the election. This was a recommendation by the previous Council to reduce the number of elected representatives as part of the State Government’s Structural reform process. The Esperance Community saw this as an opportunity to have their input with a record number of nominees and voter turnout being recorded. The election saw 3 returning Councillors (Crs Rodgers, Stewart & Walker) and 6 new Councillors (Crs Heasman, Brown, Bowman, Griffiths, McIntyre and Mansell) being elected to represent the Shire of Esperance.

I would like to acknowledge the retiring Councillors, especially Ian Mickel, who was Shire president and Councillor for 22 years. 74 years of collective Council experience was contributed by the outgoing Councillors. They are to be applauded for ensuring that Esperance continually embraced development and reacted positively to change for the benefit of the whole Shire. The time and energy committed as elected representatives is greatly appreciated by all members of the community.

I would like to extend a welcome to Cr Malcolm Heasman as our new Shire President and all current Councillors, who as a whole, have challenged the status quo and encouraged fresh initiatives, whilst ensuring strong and visionary leadership within the community. We look forward to continuing to build on this relationship to ensure the delivery of the Community’s aspirations and goals.

The State Government’s Royalties for Regions program announced the SuperTowns initiative and in early 2012 Esperance was selected as one of nine towns identified as future regional centres. The impact of the SuperTowns funding will be felt positively throughout the community. We are now able to begin work on the Esperance Waterfront, which is a transformational project along the foreshore. Funding was also secured for Town Centre Revitalisation and Economic Development Projects, both of which look at social and economic drivers that will encourage investment and growth in a sustainable manner. Royalties for Regions has also included funding for Esperance Residential College, Esperance Primary School and upgrades to the Esperance Hospital.

Extensive work has been carried out within the Shire to develop the required plans under the Integrated Planning and Reporting Framework. These plans are designed to assist in equipping our organisation to respond to short, medium and long term community requirements. The Strategic Community Plan is in draft format and will be advertised as an overarching plan that guides the future directions of Council’s policies, plans, projects and decision making over the next ten years to 2022.

Asset Management Plans (AMP) have been further advanced this year with the majority of the Shire’s asset classes AMP’s now being completed. These AMP’s identify our current assets, current and future expenditure requirements and the assets condition. This information then feeds into our Long Term Financial Plan which will determine priorities and identify any funding shortfalls. The Long Term Financial Plan needs to balance the services needed by the community with the resources available.

Drafts have been completed for the Strategic Community Plan, the Corporate Business Plan and the Workforce Plan. These documents are required by the State Government to be in place by 1 July 2013 under the Integrated Planning and Reporting Framework. The Draft Strategic Community Plan is an overarching plan outlining community visions and aspirations which guide Council actions. It will

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be advertised for public comment in October 2012. The Corporate Business Plan is the operational plan for Shire Staff to deliver on services and projects identified as important to the community.

Some major challenges faced at the Shire this financial year include the temporary closure of the Myrup Truck wash due to environmental constraints. This site has subsequently been reopened however additional funding is being sought to ensure the facility meets best practice standards in environmental management.. The redevelopment of the truck wash facility will include the integration of a liquid waste facility, therefore ensuring efficiencies and better practice in liquid waste management for the Esperance community.

Legislative changes regarding baggage and security screening at Airports saw major capital works take place at the Esperance Airport. Security screening, incorporating x-raying of checked in and hand luggage, explosive trace detection and passenger screening had to be in place by July 2012. This deadline was met through some great organisation and project management by the Staff involved. Additional upgrades to the terminal include an expansion of the departure lounge that will be completed later in 2012.

Executive and Managerial staff have remained relatively consistent over the financial year allowing for stability and the building of local knowledge. The one significant change was the loss of our Director Corporate Services, Darren Kennedy who took the opportunity to move into a role in the private sector. I would like to thank Darren for his commitment and contribution to the Shire of Esperance.

The Shire was very fortunate to secure the services of Shane Burge as the incoming Director Corporate Services. Shane had previously worked for the Shire and came back to Esperance from his role as CEO at the Shire of Derby-West Kimberley.

Workforce training has been undertaken to ensure all staff have the skills required to perform their duties efficiently and effectively. A need to become more proficient in project management throughout the organisation was identified therefore a Diploma in Project Management course was conducted locally. Staff across all levels of the organisation committed to investing personal time to complete the study required. Our commitment to providing skills based training will assist in retaining a stronger more efficient workforce.

There are exciting times ahead for the Shire of Esperance and the broader community as the Esperance Waterfront project gets under way. This will build a better foreshore by protecting existing infrastructure and building environmental and picnic related infrastructure. The Town Centre Revitalisation project will be working towards the development of a town centre that boosts both economic and social investment. As an organisation we are very excited to be living and working in such a dynamic environment. I wish to thank all staff for their ongoing commitment and efforts and extend on behalf of the Shire, appreciation to all community groups and individuals that have supported and assisted Shire staff over these past twelve months.

Mal Osborne Chief Executive Officer

“We are poised to grab hold of the opportunities and address the challenges that come our way in such a rapidly changing landscape.“


Cr Malcom HeasmanShire PresidentTown WardTerm expires 2015

Cr Roger MansellTown WardTerm expires 2015

Cr Wayne (Buck) RodgersTown WardTerm expires 2013

Cr Victoria BrownDeputy Shire PresidentRural WardTerm expires 2015

Cr Natalie BowmanRural WardTerm expires 2015

Cr Beverley StewartTown WardTerm expires 2013

Cr Paul GriffithsTown WardTerm expires 2013

Cr Nigel WalkerRural WardTerm expires 2013

Cr Lara McIntyreTown WardTerm expires 2015

Cr M Heasman H: 9076 1483 M: 0428 713 444 E: [email protected] L McIntyreH: 9072 0006 M: 0429 301 066 E: [email protected] Cr R MansellH: 9072 0146 M: 0428 720 146 E: [email protected]

Cr V Brown H: 9076 6088 M: 0418 905 407E: [email protected] W RodgersH: 9072 0093 M: 0457 720 093 E: [email protected] Cr P Griffiths H: 9071 4106 M: 0458 381 840 E: [email protected]

Cr N WalkerH: 9076 5089 M: 0427 081 856E: [email protected] Cr N BowmanH: 9075 7034 M: 0427 757 034E: [email protected] Cr B StewartH: 9072 0737 M: 0427 720 737 E: [email protected]

Your Councillors

Contact details

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Shane BurgeDirector Corporate Services

Gavin HarrisDirector Engineering Services

Richard HindleyDirector Development Services

Rod HiltonDirector Community Services

Executive Team

Mal OsborneChief Executive Officer


Executive Services

The Executive Services Team has been working towards achieving compliance with the Integrated Planning and Reporting Framework that was introduced late in 2011. Community forums were held in the late stages of 2011 to re-evaluate the community’s visions and aspirations for the future growth of our Shire. These views, along with those established from previous community consultation, the community perception survey and community engagement through the SuperTowns initiative, form the foundations of the Esperance Strategic Community Plan. The community showed great enthusiasm and passion to see Esperance grow in an economically sustainable manner whilst retaining our current inclusive community spirit and pristine environment.

The Esperance Strategic Community Plan is now in draft format and work has begun on the Corporate Business Plan. The Corporate Business Plan coordinates the processes required to ensure the aspirations and goals identified in the Strategic Community plan are utilised to drive Shire operations. The Corporate Business Plan is a planning document that outlines priorities and major projects being undertaken within the Shire in addition to outlining business as usual activities.

Work will continue on the integration of asset management, workforce and long term financial plans ensuring the Shire is in a position to resource an appropriate level of service satisfactory to the community whilst maintaining an acceptable level of sustainability.

The promotion of health and well being in the workplace has been actively encouraged throughout the organisation this financial year. With new initiatives being introduced around healthy work place practices for internal and external staff, improving safety and producing a more positive work environment.

The Shire of Esperance, via the Emergency Services Levy (ESL) was allocated funding through the 2011/2012 Capital Grant allocation. This meant eight new fire fighting appliances are to be supplied to replace aging equipment throughout the Shire and a further six appliances are offered as part of the 2012/2013 allocation.

These new trucks will replace existing fleet vehicles at a cost of $3.6m. Neridup and Commalbidgup Bush Fire Brigade were the first to receive their new appliances, with trucks to arrive for Cascade, Munglinup, Grass Patch and Beaumont in the near future.

Executive Services is responsible for the coordination of Elected Members of Council; emergency services management; governance; human services; occupational safety and health; media and communications; major projects; strategic planning and economic and business development.

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SuperTownsWe were excited to be announced as one of nine SuperTowns across the Southern part of Western Australia by the State Government. This announcement provided us with significant Royalties for Regions funds to undertake long-term community planning (Esperance SuperTown Growth and Implementation Plan) and access to almost $80m of competitive project funding.

The SuperTowns program has resulted in a fantastic working relationship being developed between the Shire, Goldfields-Esperance Development Commission and Esperance Chamber of Commerce and Industries, which has huge benefits for the whole of the Esperance community. Development of the Growth and Implementation Plan is due to be finalised by the end of October 2012, with the significant community input received to this point being extremely valuable.

We have been successful in attracting funding for three projects from the competitive funding round. The major funding contribution is $12.65m for the Waterfront project, which means we now have enough funds to commence physical works on the project. We also received funding for preparing a Town Centre Revitalisation program and undertaking an Economic Development Program. These three projects will provide Esperance with a strong platform for community driven growth and development into the future, with all three projects to commence by the end of 2012.

One of the outcomes of the local partnership that we are looking forward to in the near future is the Town Centre Conference, an opportunity to showcase Esperance as a place and highlight the skills and abilities of the people of Esperance to organise and deliver an event of significance to the State.

Future funding opportunities will continue to be explored to allow the SuperTowns program to continue to be delivered and we look forward to continuing this in a collaborative environment with the Esperance community.

“The Team has been working towards achieving compliance with the Integrated Planning and Reporting Framework”


Executive Services

Elected MembersThere was some significant changes in the Council for Shire of Esperance during the 2011/2012 financial year with Local Government elections being held in October 2011. Prior to this election Council made a decision to reduce the number of Elected Members from eleven to nine therefore a complete spill of Council was undertaken. Fourteen nominations were received for the six town ward positions and seven for the rural ward. The number of nominations received generated significant community interest which saw a record turnout in the amount of voters.

The Town Ward representatives are: Cr Malcolm Heasman Cr Lara McIntyreCr Wayne (Buck) Rodgers Cr Roger Mansell Cr Paul Griffiths Cr Beverley Stewart

The Rural Ward representatives are:Cr Victoria Brown Cr Natalie BowmanCr Nigel Walker

Due to the nature of this election four Councillors terms were condensed to a two year period allowing for an election in 2013. After this date all terms will be for a four year period with Elections being held every two years, this allows for half the council seats to be contested each time.

The Council meets on the evening of the fourth Tuesday of every month as part of a monthly business cycle, with Council meetings being open to the general public. Reports to Council are the formal method by which the administration provides advice to the Elected Members. The majority of business is dealt with by the All Purpose Committee of Council, which makes recommendations to the Council. The All Purpose Committee comprises all nine Elected Members.

Agendas for Council and Committee meetings are made available to members of the public on the Shire’s website, as well as at the Shire Administration Offices and Library. Minutes of all Council and Committee meetings are also publicly available.


Community Services

Community Services covers a range of services within the Shire, including: rangers; Senior Citizens Centre; Home and Community Care centre; Museum; Library; Bay of Isles Leisure Centre; Civic Centre; Volunteer Resource Centre; community development funds; culture; recreation reserves and playgrounds and tourism and events.


Community Services

Key Outcomes

The Library loaned 119,426 items from July 2011 to June 2012

• Ongoing informal surveying indicates a continuing high level of community satisfaction with library services however usage patterns are slowly changing with reduced loans of print materials beginning to emerge as a trend.

• The Library was visited by 82,962 people during 2011/2012 and 40,867 of these people loaned items. Other reasons for visiting the library, but not necessarily loaning items, include using the Public Access Computers and Internet, attending various library events and activities, accessing the Tax Help programme, utilising other services, reading newspapers or seeking information. See Figure 1.

• Regular Children’s programmes are well attended with two Toddler Time and Story Time sessions held each week during school term. On average 75 children per week access these programmes which are provided free and are available to both locals and visitors. These programmes are interactive and provide a learning and social environment in a positive way to encourage children to enjoy their trip to the Library. In addition the library runs Better Beginnings Early Literacy programmes and School Holiday Activities throughout the year, both have high attendance rates.

• The library held two main Family events which were rewarded by excellent attendances. They were the 2011 National Science Week Dinosaur Discoveries night and the 2012 Heavens Above: Family Stargazing Night.

• The Library has retained a team of experienced Staff and is greatly benefitted by their combined skills and strengths in many different areas of library services.

Major Achievements

• Library staff were excited to be Finalist’s in the Community Services Category of the 2011 Esperance Chamber of Commerce Business Awards. We are also thrilled to be announced as a Finalist in the 2012 Awards and are proud of our Library Trainee Mel Harper who is also a Finalist in the Trainee section of the 2012 Awards.

The Esperance Public Library provides an essential service to the Esperance Community and its visitors. It offers a variety of items available for loan such as books, DVD’s Electronic resources, magazines and jigsaws. The library also provides reliable internet access, photocopying, printing, faxing and scanning services, all of which are utilised regularly.

Esperance Public Library

Figure 1 - 2011/2012 Library Statistics

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• To celebrate 40 years of library services in the existing building a Library Open Week was held in February 2012 to highlight the diverse range of services and resources provided by the library. The priority focus was the introduction of more electronic, digital services and resources.

• Adult events and activities also continue to be appreciated, for example:

• The 2012 Telstra Connected Seniors Computer Classes have attracted over 70 participants

• Adult Learners’ Week workshops in 2011 offered Cooking on a Budget, Cake Decorating, Laptop Lessons and an Art Class and were attended by 100 participants

• The 2012 Great Gardens Show featuring John Colwill and The Great Gardens team from Perth was very popular with over 170 attendees

• Local authors Jim Finnerty and Fleur MacDonald featured in lunchtime Meet the Author sessions and the popularity of these sessions encouraged the formation of a Library Book Club, Reading Between the Wines. This group has over 30 participants who meet monthly in various locations to discuss a range of literary issues and also has an online presence through the library’s Facebook site

• The eighth State Library Discard Book Sale was held over the Easter long weekend and was a great example of teamwork between the State Library, Esperance Library staff, Esperance Library Friends (ELF) and other volunteers. More than 3000 people attended and it was fantastic to see how much enthusiasm the community has for reading. The Esperance Library benefitted from the publicity and the donation of over 500 Large Print books left over from the sale.

• The Esperance Library Friends (ELF) group had another successful year with sales from the ELF Discard Book Shop supporting Early Literacy programmes and the purchase of other resources. ELF also assisted staff with activities and events such as visiting author sessions, the Library Open Week and the State Library Discard Book Sale. They are a fantastic volunteer group who work towards making better resources and services available to all members of our community.

• The library has taken another step into the future by introducing, in a staged rollout, a range of electronic resources, namely Ebooks, Downloadable Audio and Ezines.

• The Structural Reform of Public Libraries is a lengthy process and is impacting on activities currently being undertaken at the Esperance Library. Staff are monitoring the changes being implemented and sourcing alternatives to continue to provide essential community services.

“The library has taken another step into the future by introducing E - Services.”


Community Services

Ranger Services has seen significant improvements over the last twelve months thanks to the hard work and ongoing team commitment of all staff. By working as a team and receiving amazing ongoing support from all Shire staff, various businesses in town and animal support groups such as SAFE (Save Animals from Euthanasia) and the RSPCA we have achieved great things.

Outstanding achievements include:

• The introduction of the “Pound Pooch” program involving ongoing advertising of our pound dogs and re homing them into safe and wonderful homes through out Esperance and beyond – one of our dogs was even returned to his original breeder in the Northern Territory. This has resulted in an amazing 100 dogs being re homed in the financial year 2011/2012.

• Ongoing works on the Coastal Reserves targeting Quagi and Alexander Bay including maintenance, upgrades and signage as well as the introduction of the Camp Hosts program.

• Upgrades and self registration for overflow camping on the Greater Sports Ground over Xmas, New Year and Easter 2011 into 2012

• Development of ongoing relationships with a variety of organisations in town inclusive of Fisheries, Police, Customs, DEC, support organisations and a multitude of other people and businesses.

• Heightened awareness through out the community of Ranger Services and what we offer through media support and pro active work engaging all staff with the community

Ranger Services are extremely proud of these achievements and are all looking forward in 2012/2013 to ongoing engagement within the community of Esperance to ensure a safe, happy and well balanced lifestyle in what is a magnificent natural environment.

Ranger ServicesRangers are responsible for dog and cat control, parking control, litter control, coastal reserves patrols and maintenance and block inspections under the Bushfires Act.

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Illegal Camping

A total of 195 illegal campers were issued with written cautions and 50 verbal cautions were issued. The illegal campers were requested to move on to authorised camping grounds and the overflow camp ground was offered as an alternative when it was available.

The Greater Sports Ground was utilised for an overflow camping ground during Christmas, New Year and Easter due to the town’s caravan parks and camping grounds being full. As part of a new initiative for the overflow camping ground the introduction of self registration was trialled for Easter 2012. This proved extremely successful and in conjunction with signage will be continued into the ensuing years for the overflow area.

This resulted in a marked reduction in the number of hours spent by Ranger Services staff conducting fee collection duties resulting in staff being able to attend to other matters over this busy period of the year.

Ranger Services staff utilised early starts to catch illegal campers and language translation sheets to convey positive messages as to why illegal camping was not permitted in the Shire of Esperance.

Parking

A total of five parking cautions were issued during the year with no specific problem areas in town. Rangers respond to public complaints regarding parking, we do not actively conduct parking patrols.

Fire Control/Unsightly blocks

Rangers inspected a total of 650 vacant blocks during the fire season, and subsequently 53 Notice to Comply were sent out to property owners to ensure that blocks were brought up to the required standards.

Local Laws

Quarterly inspections were conducted of all verges and thoroughfares during the year resulting in six cautions and nil infringement notices being issued for non compliance.

“We have a heightened awareness through out the community of Ranger Services.”


Community Services

Ranger ServicesLitter Control

Rangers received a total of 34 illegal dumping reports. One written warning and four infringements were issued for illegal dumping/littering. Rangers continued to conduct random patrols to detect offenders in this regard but rely heavily on community support to be effective.

Coastal Reserve

All coastal reserves continued to be occupied to their maximum capacity during the summer months with ongoing maintenance carried out during this period. During the winter months upgrades and maintenance works were carried out by Ranger Services staff as part of the annual works program.

After Hours

Rangers Emergency after Hours Service was very busy over the year. Rangers received a total of 943 after hour calls during the year resulting in Rangers attending to 76 call outs after hours.

Currently rangers respond to out of hours call outs which are related to, dog attacks, livestock roaming, emergency services requiring assistance and shark sightings.

Telephone enquiries

Telephone enquiries are one of our largest sources of information with a total of 1932 inquiries received during the 2011/2012 year.

This included 943 out of hours calls from Insight (all calls taken after 4:30 pm daily) and a total of 989 jobs on the ranger services job register. Dealing with dog related complaints still constitutes the main percentage of Ranger Services work.

The jobs on the job register are calls taken by the on call ranger for that week from Monday to Friday 7:30 am to 4:30 pm daily. See Figure 2.

Dog control

Dog control and education of the public remained the biggest single issue for rangers during the year.

19 cautions were issued in relation to dog matters with an increased focus on dogs off lead and dogs roaming. 71 infringements were issued in matters ranging from dogs causing nuisance to dogs roaming. Figure 3 provides additional information regarding animal control.

There appears to have been a marked increase in the number of dog attacks over the 2011/2012 financial year however, this could possibly be due to increased media releases regarding responsible dog ownership and encouraging residents to report dog attack incidents.

Due to the strong Pound Pooch re homing program, ongoing business and local support and continued support from dog support agencies SAFE and RSPCA, the number of dogs successfully re homed has considerably increased. This financial year Ranger Services reached a milestone re homing their 100th pound pooch.

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Figure 2 - Ranger Services Telephone enquiries

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012Dogs 2654 2847 2522 939 831RSPCA 57 56 18 8 13Livestock 175 154 185 66 56Litter 29 29 43 34 35Cats 166 233 219 56 54Fire 216 364 152 49 54Parking 104 103 90 21 14Camping 73 142 117 50 49General Enquiries 811 934 787 139 149After Hours Not known Not known Not known 501 943Total 4285 4862 4133 1863 2198

Figure 3 - Animal Control

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012Impounded dogs 479 416 390 296 275Dogs returned to owners after impounded 179 149 179 150 149

Dogs Euthanized 99 106 61 66 30Rehoused Dogs N/A 49 53 70 88Feral cats Euthanized 24 41 25 20 15


Community Services

The Esperance Visitor’s Centre has enjoyed another successful year. The 2011/2012 financial year saw a slight decrease in our ‘door count’ numbers from 125,399 in 2010/2011 to 123,600 in 2011/2012 - see Figure 4.

Despite slightly decreased numbers, the Esperance Visitors Centre did achieve an increase in income. Key outcomes include:

• Accommodation bookings through the Esperance Visitors Centre rose from $539,470 in 2010/2011 to $678,670 in 2011/2012, a rise of 25.8%.

• Overall commissions rose from $117,357 in 10/11 to $123,734 in 2011/2012, a 5.4% increase. This figure was severely affected by commissions earned from tour bookings that fell from $10,085 in 2010/2011 to $1,273 in 2011/2012 – a direct result of the change in ownership of the Woody Island Cruises with the new owners not wishing to use the Visitors Centre as a booking agent.

• Advertising revenue (from building and website advertising) rose from $4,571 in 2010/2011 to $7,920 in 2011/2012, a 73.275 increase.

• Souvenirs and CALM Pass sales rose from $109,593 in 2010/2011 to $114,462, a 4.4% increase.

Our Web site continues to be popular with 187,138 unique visits in 2011/2012, averaging 3,599 visits a week. This represents a 23% increase in visitation to our website. The average web visitor looked at 4

pages per visit and each visitor spent an average of 3-4 minutes on our site with 84% of visitors coming to the site via search engines – this represents no real change from the 2010/2011 Financial Year.

Other Esperance Visitors Centre highlights from the 2011/2012 Financial Year include:

• In October 2011 The Esperance Visitors Centre was represented at the annual Visitors Centre Association of Western Australia (VACWA) conference, held in Kununurra. The conference ran for three days and featured a series of guest speakers on a diverse range of topics including, staff recruitment, staff training, using social media as a promotional tool, the impact of natural disasters on tourism and the impact of cane toads on tourism.

• On the 1st of December 2011 the Esperance Visitors Centre co-hosted (with Tourism Esperance) the December ‘ECCI Business After Hours’. The function went well with about 30 guests attending the function held at the Visitor Centre.

• In April 2012 Ross Beckett attended the Sydney Caravan, Camping and Touring Supershow and represented Australia’s Golden Outback (AGO). This involved ‘manning’ the AGO booth on the Tourism WA stand and answering questions from prospective visitors about things to see and do around the AGO and the Esperance regions. Costs were covered by AGO.

Esperance Visitor CentreThe Esperance Visitor Centre provides a gateway for tourists to the Esperance Region.

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Figure 4 - Visitor Centre Door Count

“The Visitor Centre web site averages 3,599 visits a week.”

• In May 2012 Visitor Centre Representatives spent half a day with The Hon. Kim Hames MLA – Minister for Tourism. The Minister was taken on a cruise to Woody Island which was also attended by representatives from Tourism Esperance, ECCI and Cr. Paul Griffiths.

• In June 2012 it was announced that Lucky Bay won the ‘Natural Resource Management Award’ at the ‘Keep Australia Beautiful WA Clean Beaches Awards’; the submission was put together by Tahnee Adamson, and Milton Valli represented the Visitor Centre at the Awards Breakfast on Wednesday 13th June.

• The Australian Traveller Magazine “100 Best Views in Australia” awared Esperance the 31st spot due to a picture submitted of the Great Ocean Walk Cycle way.


Community Services

Entertainment

During the 2011/2012 financial year the Esperance Civic Centre presented 26 shows (up from 24 in the 2010/2011 financial year). Seven of these shows were venue hire’s, which was an increase of six from the previous financial year. This year there were two simulcast shows (both venue hire’s) from the Perth Concert Hall they were the Vienna Philharmonic Orchestra and the Western Australian Symphony Orchestra. The Civic Centre also continued its collaborative relationship with the Bijou Theatre by assisting in the sale of tickets for all their shows.

In 2011/2012, 6,743 tickets were sold to all shows at and presented by Esperance Civic Centre and at The Bijou Theatre. Ticket sales included:

• 779 Concession Card holders and Seniors Card holders (a 32.4% decrease)

• 25 Companion Card holders (up from 21)

• 224 Friends of Esperance Civic Centre (up from 175)

• 2,082 internet sales (a 10.1% decrease)

• 469 from the Library and The Visitors Centre (down from 734)

The total figure of 6,743 represents a 14.2% decrease on 2010/2011 ticket sales. However our revenue increased by 10.5% - $191,993.5 in 2011/2012 compared to $173,753 in 2010/2011.

The increase in expenditure for the 2011/2012 financial year is matched by an increase in income for the same period. In dollar terms there was an increase of $50,787 (this is a 7.8% increase) in expenditure and an increase of $57,852 (23.8%) in income - detailed in Figure 5.

Esperance Civic CentreThe Esperance Civic Centre provides the focal point of entertainment in the south east of Western Australia.

Figure 5 -Civic Centre Income and Expenditure

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Venue Hire / Use

The Civic Centre hosted a wide variety of functions across the 2011/2012 financial year, including:

• 92 meeting days

• 32 private functions and wedding receptions

• 13 funerals

• 4 Blue Light Dance Parties

Other highlights at the Esperance Civic Centre included:

• Annual Shire Senior Citizens dinner

• Annual Esperance Senior High School Ball and careers day

• Annual Esperance Music Festival over three days

• Annual Dance School End of Year Concert(s)

• Bridge Club Conference over four days

• Apex Teenage Fashion Awards

• Esperance Chamber of Commerce and Industry awards night

• Esperance District Recreation Association Sports Star of The Year award

• Six School graduations (plus rehearsals) South East Premium Wheat Growers Association Ladies Day

• Woolworths Charity Ball

• The Yellow Dot Ball

• Jehovah’s Witness Convention – a three day event

• Seventh Day Adventist services – seven days over a three week period

The Esperance Civic Centre was also the venue for two significant community celebrations and the funeral for a former civic leader.

• In January 2012 Fred DeGrussa celebrated his 100th birthday surrounded by family and friends.

• In March 2012 former Shire President Ian Mickle was made a ‘Freemen of the Shire’.

• Also in March 2012 former Shire President David Reichstein’s life was celebrated at a funeral in the Auditorium.

In 2011/2012 The Esperance Civic Centre continued its strong association with both CircuitWest and Country Arts WA. Ross Beckett continued as a Management Committee member of CircuitWest and a Board Member (representing Regional Performing Arts Venues) of Country Arts WA. Mr Beckett attended two special CircuitWest meetings, the Australian Performing Arts Centres Association annual conference and Long Paddock, in Perth and both were funded by Country Arts WA. Mr Beckett also represented Country Arts WA and the Esperance Civic Centre at the “Open Your Eyes” Regional Arts Conference in September of 2011 in Geraldton.

“The venue is utilised for a wide variety of community events”


Community Services

In this financial year attendance through the Bay of Isles Leisure Centre (BOILC) has dropped by 30,000 in total - see Figure 6. However, 24,000 of this decrease is from casual pool visits and matches with anecdotal observation that the pools have been quieter this year, without any determinable reason. The other areas suffering decreases in attendance are explainable. Firstly, group fitness has had the effect of ESP Fitness opening in town and offering a larger suite of classes, particularly evening classes which BOILC cannot offer, this inturn impacts crèche attendance. There was also a noticeable drop in Function and Sports Hall attendance. However, this figure is already under-reported by possibly 50% since gymnastics and taekwondo user groups do not register their entry into the facility. In 2010/2011 payments were made at reception but in 2011/2012 user groups are invoiced directly and do not at any time need to approach reception. Once Entry Control systems are operating these attendance statistic will increase dramatically.

Improvements made at the BOILC to increase efficiencies, reduce costs and ensure legislative compliance include, but are not limited to, the following:

• An energy audit of the facility was conducted and the recommendations resulted in improvements including the reactivation of automatic temperature control systems for the four swimming pools and investigation into the air handling unit control systems. Changing from manual to automatic control has shown a trend to fewer spikes in gas use and a more consistent gas use pattern.

• Backwash waters from the swimming pools is now discharged on site to sewer from a holding tank at a controlled low flow rate.

• The chlorine gas storage area was upgraded to comply with the Dangerous Goods Storage Act and simultaneously the on site storage area for chemicals was improved ensuring staff safety.

• Sight glasses were installed into the backwash discharge lines enabling water to go to waste for only as long as needed rather than for a set period of time. There will be a reduced duration and frequency of backwash for the coming years with anticipated large water savings and associated reduction in pool chemical use.

• An automatic floor cleaning machine for the pool concourse was purchased. This provides a more hygienic and clean surface whilst using less water and man hours.

Bay of Isles Leisure CentreThe Bay of Isles Leisure Centre provides access to a number of services for the community. This includes recreational, lap and hydrotherapy pools, gym, fitness classes, venue hire for sporting groups, sauna and spa.

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Figure 6 - Attendance Statistics2009/2010 2010/2011 2011/2012

Memberships sold 1001 979 976Casual Gym 3887 4557 4474Casual Class 1997 2741 1831Member Gym 29484 35873 32068Member Class 7863 8857 8922Casual Pool 95129 91390 67772Member Pool 30158 27674 27126Staff entry (all) - 2206 2101Swim School Enrol 2265 1874 1830Crèche 3748 3540 2884Function & Sports 4494 3986 2723Total entries 176,760 180,824 149,901(Health & Fitness) 47798 52028 47295(Pools) 125287 119064 94898

• Permanent pool blanket rollers were installed for the rehabilitation and lagoon pool which now enables a single staff member to complete the job. The 25m pool blanket trolleys are now stored on a newly built paved area immediately outside the deep end of the facility. These will soon be operational now the dive blocks have been removed.

• A Preventative Maintenance Schedule has been created and maintained. This was achieved in consultation with all Shire Buildings and it is now possible to refer to a single document to determine when inspections and programmed maintenance is due. This will also lead to savings as potential suppliers can be approached for multi-year contracts.

“Improvements have been made to increase efficiencies, reduce costs and ensure legislative compliance”


Finances

Operating figures in Figure 7 are taken from the ‘BOILC Business Plan Operating Report’. This does not include:

i) depreciation of the building ($127k),

ii) building expenses ($398k) or

iii) Shire’s administration allocation ($88k).

The BOILC does not currently pay for gas use, which is approximately $235,000 per year. Our operational cost recovery has remained at 74% which is a positive statistic given the large decrease in total attendance. The decrease in total attendance increased the ‘cost per attendance’ figure for the facility.

Benchmarking services engaged in 2011/2012 consider the total cost, rather than just operating, and BOILC compared similarly to most WA facilities of similar size. Our cost per visit was $3.09 in comparison to $2.80 for the others. However, once a figure for gas consumption is included the cost will increase. This is also a result of our low attendance and small catchment population. However, BOILC was fifth top on the whole list for attendance based on catchment population indicating our small population use the facility frequently.

Figure 8 details are taken from the ‘BOILC Committee Operating Report’ and include all costs associated with the facility. Rec Centre Building expenses were $400,000 this year, $150,000 over budget – primarily due to urgent repairs required on the lagoon pool wall and the requirement for the chlorine gas storage area to become compliant with the Dangerous Goods Storage Act.

In 2010/2011 benchmarking, only Swan Park Leisure Centre in Perth had a worse cost per visit figure with $6.35. They too had significant capital building expenditure in that year. Augusta-Margaret River had a cost recovery of only 49% and a comparable metro facility, Leisurepark Balga had 60%.

The largest of metropolitan centres achieved 93% cost recovery primarily due to their very large health and fitness centre operations generating significant profit to offset the costs of operating swimming pools.

The Shire of Esperance needs to determine an acceptable cost recovery figure and therefore estimate the proportion of the expenses of the facility supported by rate payers as a service to the community versus the revenue generated by the facility. In a positive development, both attendance and income will be highly likely to increase in 2012/2013 with the implementation of Entry Control systems to the facility for the first time and the employment of a Health and Fitness Supervisor to improve membership retention and customer service.

Figure 7 - Annual Figures: Operating

2009/2010 2010/2011 2011/2012

Expenditure $1,021,927 $1,105,950 $1,178,472

Income $762,523 $813,093 $876,469

Deficit $259,404 $292,857 $302,003

Total Attendance 176760 180824 149901

Cost per visit $1.46 $1.62 $2.01

Cost Recovery 74% 73% 74%

Figure 8 - Annual Figures: All expenses

2009/2010 2010/2011 2011/2012

Expenditure $1,446,870 $1,620,999 $1,794,747

Income $762,523 $813,093 $876,469

Deficit $684,347 $807,906 $918,278

Total Attendance 176760 180824 149901

Cost per visit $3.87 $4.46 $6.12

Cost Recovery 53% 50% 49%

Community Services

Bay of Isles Leisure Centre

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Health and Fitness Attendances

Figure 9 indicates the total member and non-member attendance to both the gym and group fitness classes. It is apparent that the general shape of the graph is the same as the preceding year with troughs in the school holidays, particularly over the summer break and Easter. Attendance in the pre-Christmas period was inflated with the attendance of Horizon Power and John Holland employees who were on short-term corporate memberships with the facility. Post-Christmas many of their individual memberships were not renewed and, combined with the lower Group Fitness attendance left our attendance lower than the corresponding period in the previous year.

Membership levels have been higher or equal to the previous year.

Aquatics

Once again a very different pattern to metropolitan centres is seen with the complete absence of a heat related increase in pool attendance during January to March as shown in Figure 10. There is a similar trend over both years with an Easter trough evident but with a clear reduction in attendance this year across all the months. We can only speculate as to the reason, it’s not immediately evident.

Swim School

Swim School continues to struggle to attract and retain Swim Instructors. However this has stabilised over the latter half of 2011/2012. The young instructors now have a year of teaching experience which helps with the parents’ perception. A dip in Term 4 this year in comparison to last year is due to a greater range of classes offered by VacSwim (Education Department) over summer and parents opting for this. Total numbers for the year were 31 less than the previous year.

Group Fitness Classes

Esperance appears to have an inverse attendance pattern to metropolitan centres with our numbers reducing in summer time, seemingly due to people departing during school holidays. However, unique to 2011/12 was the opening of a new Group Fitness facility in Esperance in direct competition to our programs. This occurred in December and exacerbated the usual drop in attendance at that time. The new business offered free three month memberships plus regular evening classes which immediately caused some of our members to leave to obtain better value for money and access to more classes.

During autumn our numbers have increased once more and happily are not too much below last year. May had a spike in total numbers as it was a five week month with only four weekends included.

Figure 9 - Health and Fitness Attendance

Figure 10 - Aquatics Attendance


Community Services

Greater Sports Ground Re-Development Update

The Football Development Commission released its report about football in Esperance and the main recommendation was for Ports Football Club to remain located on the Greater Sports Ground (GSG). The potential playing field space around Ports is considered more than adequate for a significant increase in participant numbers based on the highest estimates of likely growth. Consequently the GSG Master Plan was amended to retain Ports Oval.

Following this decision Indoor Stadium user groups were consulted with at length regarding future requirements in the proposed new stadium. Ultimately several alternative options of court and room layouts were considered, all of which fit inside the proposed building ‘footprint’. This footprint has been approved by Council and along with the southern car park being upgraded to a sealed and kerbed surface.

Future GSG direction involves seeking a feasibility study to be carried out by an independent consultant, final plans to be sought and most importantly Council to determine when funding will be made available so that Community Sports and Recreation Facilities Fund (CSRFF) funds can be applied for. This will require the engagement of the Department of Sports and Recreation as there are other projects likely to be asking for over $1 million in the region.

Once a timeline is found then a number of other jobs within the GSG can be scheduled including demolition of badminton hall and netball hall, potential tennis club courts extension, creation of an ablution block in the north east corner and alterations to the agricultural society buildings. These jobs will cascade once the stadium redevelopment occurs.

Funding Partnership With Sports Clubs

Four projects were funded this financial year by the Department for Sport and Recreation through the CSRFF, the associated sporting clubs and the Shire.

• The Esperance Motocross Club received funding to upgrade its ablution block.

• Grass Patch Tennis club upgraded its tennis court playing surfaces.

• Esperance Cricket Association upgraded its nets on Esperance Oval and installed new nets on Newtown Oval.

• Esperance Soccer installed lighting towers on Little Lords Oval.

Public Open Space Strategy

Recently there was an audit of the Shire’s parks and reserves completed. This was necessary to gain a complete understanding of the asset management issues for all reserves without splitting these into separate components such as playground equipment, reticulation, mowing. This audit lead to the development of a single document addressing public open space and may serve to consolidate various previous stand-alone documents such as the Trails Master Plan, Playgrounds Strategy and Physical Activity Plan all of which had involvement from the Manager Recreation and Youth. Department of Sport and Recreation have expressed a strong interest in providing input at an early stage, particularly in relation to Education Department lands and their accessibility or otherwise to the public.

Bay of Isles Leisure Centre

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Looking Ahead

Entry control systems will be installed in Spring 2012 as the final phase of an upgrade to the entry and foyer area of the leisure centre. It is expected that this will increase recorded participation and revenue significantly plus improve the safety of young children around the aquatic area.

Recommendations were made in the Energy Audit for installation of Solar Heating systems to pre-heat the pool water thereby reducing the gas consumption. Although the regular use of pool blankets is likely to reduce gas consumption by around 20% the unit cost of gas is likely to continue to increase. It is imperative that the Council prepare for the effect of paying full price for gas consumption in 2023 by allocating money for suitable capital improvements to reduce consumption prior to this date.

A report from an independent consultant into the potential for redevelopment of the Bay of Isles ‘dry side’ is expected around November. It is expected that this will provide direction for revenue-generating improvements to the facility, positively affecting membership numbers and group fitness class attendance.

A significant increase in the number of group fitness classes offered at BOILC is going to occur in September with the implementation of Les MillsTM pre-choreographed classes. Restricted attendance evening classes will be added to the time table and will be conducted in the current indoor cycling room. This is not an ideal situation but evening classes are paramount for the success of a group fitness program and it is hoped the redevelopment of the Health and Fitness area will prioritise the creation of a dedicated Group Fitness Studio and turn the Group Fitness area of the facility into the revenue generating exciting area of the facility it ought to be.

During the 2012/2013 financial year a new 0.5 FTE Health and Fitness Supervisor position will be filled with the primary aim to drive membership retention and customer service of the dry side of the facility plus supervision of the group fitness program. This should have an immediate positive effect on membership numbers and participation.


Community Services

The Esperance Volunteer Centre was successful in winning the Best Local Community Group award at the 2011 Esperance Chamber of Commerce and Industry awards for the second year running. The centre officially opened its doors on 4 May 1999 with the assistance of funding from the Federal Department of Health and Aged Care, at the time, through their Volunteer Management Program, auspiced by the Shire of Esperance. The funding model of short annual funding has remained fairly unchanged over the years. However, in late June 2012 we finalised negotiations to continue our Federal Funding for a further three years and we were successful in bidding for State Government funding which covers the next five years. The Centre has never before had the luxury of knowing funding was guaranteed into the future for this length of time.

In the last year the centre has assisted 299 people to volunteer either through individual interview, phone contact or email assistance. We have worked with over 70 agency enquiries from the short query about volunteer insurance to the longer assistance on how to review and change a Constitution. The Centre organised and facilitated over 16 training sessions

with 319 volunteers and volunteer managers attending topics as diverse as Mental Health First Aid and Suicide Prevention through to Governance and Recruiting, Recognising and Retention of Volunteers. Figure 11 provides a comparisson of individualls and organisations assisted.

The Esperance Volunteer Resource Centre was involved in the 2012 Kids Fun Day, a large and very successful event held annually in Esperance. The centre was able to help as part of the management committee for the event and assisted in the recruiting and management of the volunteers on the day.

The Volunteer Resource Centre would like to acknowledge all members of the community who volunteer, without your commitment to volunteering some community events could not occur or would be of a smaller scale.

The winning of our second Best Local Community Group award was fantastic and is something we could not achieve without the assistance of many wonderful community members who volunteer their time.

2009/2010 2010/1011 2011/2012Individuals assisted to volunteer 283 119 299Community organisations assisted 80 72 71Volunteers Trained 188 236 228Volunteer Managers Trained 88 96 86

Esperance Volunteer Resource CentreEsperance Volunteer Resource Centre provides information and support to volunteers and agencies working with volunteers.

“we were successful in bidding for State Government funding which covers the next five years.”

Figure 11


Engineering Services

A significant part of the year has been spent in developing the Esperance Waterfront Project ready for works to commence in the 2012/2013 financial year. Along with this a number of peripheral projects have commenced including a review of the Norfolk Pines throughout the Esperance townsite, review of all playground equipment for compliance with Australian Safety standards, a review of the Road Network Hierarchy, commencement of a Public Open Space review and an audit of the Eastern Suburbs Waste Water Reuse Scheme.

Also officers have been working to secure funding for the new Myrup Waste Water Facility which will see the upgrading of the existing truckwash facility and the integration of the waste water facility currently located at the Wylie Bay Waste Facility.

Roads

The Shire of Esperance is responsible for the management and maintenance of the largest road network of any local government in Western Australia with 819 km of sealed roads and 3,679 km of unsealed roads

In the 2011/2012 financial year we were able to complete the following works –

• Gravel re-sheeting of approximately 113km of gravel roads including 59km on the Cascade - Lake King Road.

• Limestone re-sheeted of approximately 55km of limestone roads

• Reconstructed approximately 10km of rural sealed roads

• Resealed approximately 16.5km of rural sealed roads

• Construction of approximately 3.2km of new rural sealed roads to the value of $ 425,576

• Asphalt overlays on urban roads to the value of $378,467

• Footpaths – Replaced 1km of slab footpaths with brickpaved paths, constructed approximately 1km of new footpaths

• Spent $51,184 on new kerbing in the residential and industrial areas in Esperance.

• A number of solar lights were installed in remote location along the Twilight Beach footpath

Parks and Gardens

Works were completed on the new Walker Street Playground, valued at $180,000, which included playground equipment, landscaping, street furniture, footpaths, nature trail and tree top viewing area. This project represents the continuation of the Esperance reserve upgrade strategy, designed to develop more usable recreation space.

This year also saw a review of Parks and Gardens operations and infrastructure, to develop more efficient work programs and an increased level of service for our recreation spaces. The review also determined that a significant amount of investment was required to upgrade our existing aging reticulation network. This program is commencing in the 2012/2013 financial year.

Engineering Services is responsible for: infrastructure and property services, local roads, bridges, footpaths, drainage; asset management; airport; waste collection and recycling; cemeteries and foreshore erosion management and development.

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Waste ManagementThis year saw the commencement of a review of waste management within the Shire of Esperance and the development of a Waste Disposal Strategy which looks at the future of the Wylie Bay Waste Facility. The review is being developed further in consultation with the Department of Environment and Conservation prior to discussion with the community.

The Wylie Bay recycling centre also celebrated its 10 year anniversary with the Esperance community having recycled over 10,000 ton of material in that period. The recycling centre has continued to operate in an efficient manner and sent 1,300 ton of product to Perth for recycling in 2011/2012. This year saw the introduction of e-waste and florescent globe recycling.

Esperance AirportThis year saw the commencement of the Airport redevelopment for the introduction of security screening on 1 July 2012. The works involved a $2.5 million upgrade of the airport terminal to accommodate the screening equipment and a secure boarding area. The screening equipment was purchased with the assistance of a federal government grant and is valued at $650,000. The cost of the equipment including running and replacement and the engagement of a contractor to undertake the screening also will see an increase in airfare prices between Esperance and Perth of $40 per person on the outbound ticket. This price represents the total cost of screening per passenger per ticket. The 2011/2012 financial year saw approximately 48,000 passengers travel through the airport.

Asset Management

This year saw the continuation of data collection and the development of asset management plans for all shire assets. The asset management plans identify our assets, what they are, where they are, what condition are they in and what needs to be spent on them in the future to maintain them. This information then feeds into the long term financial plan to determine what Council needs to be allocating for the maintenance of our existing assets into the future. Currently our asset base is valued at approximately $651m.

The Shire road asset’s were also reviewed with the introduction of new asset management software (ROMAN II). This also involved the collection of condition data on our entire sealed and unsealed road network. The entire road network was traversed over a five week period with a variety of data collected for input into the new software system. This information will be used to develop the Roads Asset Management Plan in 2012/2013.

“The Wylie Bay Waste Facility celebrated it’s 10 year anniversary in 2011”


Development Services

Town Planning

Amendments 6, 8, 9 and 10 to Local Planning Scheme No. 23 were Gazetted in 2011/2012. A further 5 Scheme Amendments were being processed throughout the year.

A significant number of development applications were received and determined, by shire staff as per Figure 12.

The Commercial Centre Strategy was also adopted by Council. This Strategy aims to guide the provision of commercial and associated activities within the region during the next 10 to 15 years.

A Business Case for the Town Centre Revitalisation Plan was prepared for the SuperTowns project, and was sucessful in receiving $380,000. The Background Analysis document for the Plan has been developed, and will continue to develop over the next year.

Audits were carried out by our Planning staff to provide input in developing draft stategies for access and parking, residential and industrial land. These strategies are temporarily on hold to allow for the development of the SuperTowns Growth Strategy and Town Centre Revitalisation plan.

Local Planning Policies for Holiday Homes and Wind Turbines were adopted in 2012, and a further policy for Industrial Precinct Design Guidelines will be considered by Council in late 2012.

Further development has been made into the implementation of a Geographic Information System (GIS). The improvements, both in the range of data that is displayed as well as the quality of the data available, are enabling officers to more fully and efficiently assess development applications.

Figure 12 - 2011/2012 Development Application ApprovalsApplications Received

Applications Determined

Development Applications 292 276Subdivisions 23 23Home Occupations 5 5Home Occupation Renewals1 17 13

1Home Occupation Renewals have reduced based on a number becoming exempt under Local Planning Scheme No. 23.

Development Services is responsible for: health services such as water and food inspection, immunisation services, toilet facilities, noise control and meat inspections and animal control; building services, including inspections, licensing, certification and enforcement; planning and development approval and environmental services.


Development Services

Environmental Health

During 2011/2012, Environmental Health and Environment Services continued to undertake inspections and actions to promote community health and well being.

This included undertaking a range of activities including inspections, monitoring of Shire activities, audits, provision of educational material, complaint investigation and resolution. The Environmental Health team completed over 1000 assigned tasks associated with actives relating to food premises, caravan parks and camping grounds, environmental protection, public buildings, accommodation and aquatic facilities and a number of other health related premises. Some of this activity is outlined in Figure 13.

Figure 13

Inspections Eastern Suburbs Water supply SchemeFood 333 Chemistry 36Effluent Disposal Systems 39 Microbiological 240Caravan Parks & Camping Grounds 9 Myrup Truckwash 6Hairdressing and Skin Penetration 4 Recreational Water 55Lodging House 27 Food Safe Workshops provided 7Offensive Trade 5Public Buildings 106 Meat Inspection – Animals InspectedAquatic facilities 10 Bovine 13,551

Ovine 116,821Sampling Activity

Food: West Australian Department of Health Co-ordinated Food Sampling Programs Participation

Samples collected

14

21

Rainwater Tank Sampling 18Aquatic Facilities 137Air Handling Systems 24Mosquito 21Potable Water (Microbiological) 102Landfills 48

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Figure 14 - Breakdown of Building Approvals 2010/2011 2011/2012Description Number Value Number ValueNew Single Dwellings/Duplexes 72 $22,313,885 52 $14,969,358Alter to Dwellings 45 $2,905,259 25 $2,432,174Approval Certificates Dwellings (Retrospective Approval) 0 0 0 0

Industrial, Commercial 16 $11,450,982 14 $5,320,689Alter to Industrial, Commercial 13 $1,008,414 15 $9,990,503Approval Certificates Industrial, Commercial (Retrospective Approval) 0 0 2 $13,000

Outbuildings 126 $1,842,915 106 $1,573,716Alter to Outbuildings 16 $127,737 6 $25,000Approval Certificates Outbuilding (Retrospective Approval) 1 $18,000 0 0

Sundry Structures (Retaining walls, Fencing, etc) 19 $198,000 18 $172,998

Sundry Structures (Retaining walls, Fencing, etc) (Retrospective Approval) 0 0 0 0

Demolition 5 $78,275 4 $28,355Pools 2 $59,000 4 $57,500Total 315 $40,002,467 246 $34,583,293

Building

During the 2011/2012 financial year, Building Services prepared for new building projects such as the West Beach toilets (currently at design stage) and overseeing additions to existing buildings, some of which were the Home Care Building (kitchen additions) and Bay of Isles Leisure Centre chemical storage area.

The Building Maintenance Program has been split into two areas, planned and reactive maintenance so that a measure can be put into place to confirm that planned maintenance of the Shires built assets is having the desired effect which is to minimise reactive maintenance by implementing a comprehensive maintenance program. Council allocated funds in the 2011/2012 year for building asset maintenance which is also being used to inspect and rationalise existing buildings, ensuring that they will be brought up to standard, complying with legislative requirements.

Building Legislation Changes

In April 2012 sections of the Local Government (Miscellaneous Provisions) Act 1960 were repealed so that the new Building Act 2011 could take full effect. The changes have resulted in considerable administration and building approval process changes.

Building Approvals

In total, 246 building permits were issued by the Shire of Esperance, worth over $34 million dollars. These comprised of 52 residential dwellings, 14 commercial and industrial buildings, 112 outbuildings and 68 additions and alterations made up the remainder of the approvals. See Figure 14 for details.


Corporate Services

Corporate Services changed leadership this year with Mr Darren Kennedy leaving the Shire to take up other opportunities. Mr Kennedy was an asset to the Shire implementing many improvements for the long term benefit of the Shire and its residents. Mr Shane Burge has taken on the role since May 2012 and is keen to capitalise on the opportunities and challenges open to the Shire to ensure ongoing sustainability.

New legislation introduced by the State Government has seen local government make preparations for the Integrated Planning and Reporting Framework. The new framework is designed to improve the overall standard of long term strategic planning and financial management within Western Australian local governments. A particular emphasis has been placed on community engagement with the preparation of the strategic plans and for financial planning to take a longer term view.

As a result of these changes the annual Shire budget commencing 2013/2014 and subsequent annual budgets will need to be predominately derived from a Council adopted Corporate Business Plan and accompanying Long Term Financial Plan. These changes are a major deviation from what the Shire and local government have traditionally done in the past although Council and staff are progressively working through the new legislative framework to ensure that compliance is achieved within the stipulated timeframes. The majority of the changes will enable the local government industry within WA to move towards closer uniformity with the rest of Australia.

Corporate Services is responsible for: audit and grant management ; finance management; long term financial planning; information technology; records management; statutory reporting; administration; customer service; licensing and rates.

“Emphasis has been placed on community engagement with the preparation of Strategic Plans for long term Financial Planning”

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Information Technology

In the year leading up to 7 November 2011, IT conducted the “Managed Services Migration” project. This was an extensive project to inform and prepare staff for the transition of most IT systems to a secure data centre in Sydney. The majority of the project focused around analysis of staff interaction with the IT systems, and then defining and mitigating risks with the move. The move was well tested, and successfully completed on the 7 November 2011. The result of the move to a “Managed Services” environment has ensured the Shire has complete business continuity and a disaster recovery system with respect to its IT systems.

A new Council Agendas and Minutes system know as InfoCouncil was deployed during the year. This program allows agendas and minutes to be managed through dedicated software and includes processes to upload minutes directly to the Shire’s website. Preparation for telephone services to move to VOIP (TIPT) was performed, which included re-cabling of the Shire’s Admin building’s wired network, and a logical redesign of the whole Shire’s physical network (Administration building and attached out-centres). A new Customer Request Module(CRM) system was configured and is ready for testing.

Over the coming year there will be an assessment of the in-house Management Accounting Reporting Software (MARS) that was developed in-house. This software is no longer supported from an IT perspective therefore a sustainable IT solution needs to be implemented to ensure a continuance of management reports can be retained within the Shire.


Corporate Services

Statutory Reports

Report under Section 29(2) of the Disability Services Act 1993

The Shire of Esperance has continued its commitment to provided improved access for people with disabilities.

The Disability Access and Inclusion Plan Working Party monitor’s the Disability Access and Inclusion Plan 2010/2012 (DAIP). Key projects are identified and an implementation schedule is set out for each financial year. For the 2011/2012 financial year the following projects were undertaken:

• Promote and publish details of the DAIP and how persons with a disability or their carers can have input into the plan.

• Publish and advertise the process for lodging complaints or requests for works with the Shire.

• Advertise and promote the options available for people to receive information in differing formats from the Shire.

• Over the last five years the Shire has been replacing all concrete slab footpaths in the central business district to ensure smooth and easy access for all community members, this year saw the annual works program complete this project along The Esplanade. The Shire also regularly sweeps concrete footpaths of loose stones, installs kerb ramps in new footpaths, and requires provisions for disabled people in new commercial buildings and where major alterations have been undertaken in existing buildings.

• The Bay of Isles Leisure Centre installed two new machines in the gymnasium that specifically target strength training and can be utilised by able bodied patrons and patrons with a disability. The cardiovascular machine

is for upper body training only whilst the Multi Plex station provides a full body workout when required, both machines are wheelchair friendly. Health and Fitness staff have been trained to work with people with disabilities to assist in providing guidance and safety advice on the use of all equipment.

• The introduction of the Swim ability squad has allowed children with disabilities to maintain their water fitness and increases the likelihood of their inclusion into a mainstream swimming school program.

Compliance with the State Records Act 2000

The Shire submitted an amended Recordkeeping Plan to the State Records Office on 26 July 2011. This amended plan was approved by the State Records Commission on 2 December 2011.

This Plan describes the Shire’s commitment to good and compliant recordkeeping procedures and identifies future projects.

The Shire main focus in Records has been improving the Electronic Document Management System (EDMS) TRIM, enhanced with a new business classification system and semi automated retention and disposal of folders.

The Shire has also been addressing the disposition backlog of hardcopy files held in storage within Records. The Shire has currently sentenced 8,285 folders, of which:

• 575 files identified as permanent archives

• 1,336 files identified as local archives

• 3,053 files identified as inactive records, for future disposal, and

• 3,321 files identified for destruction, which have since been destroyed.

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National Competition Policy

The Competition Principles Agreement is an Inter-government Agreement between

the Commonwealth and State/Territory Governments that sets out how government will apply National Competition Policy principles to public sector organisations within their jurisdiction.

The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition Principles Agreement require local government to report annually as to the implementation, application and effects of the Competition Policy.

The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting. These are:

1. Competitive Neutrality;

2. Structural Review of Public Monopolies; and

3. Legislative Review.

In accordance with the requirements of the National Competition Policy, the Shire of Esperance makes the following disclosures for 2011/2012.

Performance Indicators

The Records Department is currently maintaining statistical information for work processes within the department. In accordance with the State Records Act 2000 the Shire has developed performance indicators based on the statistical information gathered.

Information Statement

On 19 April 2012, the Shire updated and approved the Information Statement as required by the Freedom of Information Act 1992. The Information Statement can be obtained from the Shire’s website, Administration Office or on request.

Records Training

The Shire has developed a structured induction and training program to ensure that employees, contractors and elected members are aware of their role and responsibilities in regard to compliance with the Shire’s Recordkeeping Plan.

The Training consists of:

• Introduction to Records Management

• Records Awareness Training (RAT)

• TRIM (Electronic Document Management System) Training Manual

• Specific TRIM training targeting priority areas.

• Advice to staff regarding recordkeeping or TRIM on an ongoing as needs basis.

This training is provided to all employees who have record keeping duties. Employees are advised of any additional information such as policies and procedures which are published on the Shire’s intranet.


Competitive Neutrality

The objective of competitive neutrality is the elimination of resource allocation distortions arising out of local government ownership of significant business activities.

The Shire of Esperance has previously assessed its operations and considers that it has one business activity that would be classed as significant under the current guidelines. Also the Shire of Esperance does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise.

The number of activities to which competitive neutrality principles have been applied in the reporting period is Zero (0).

The number of activities to which competitive neutrality principles have been considered but not applied in the reporting period is Zero (0).

During the reporting period the Shire of Esperance did not become aware of any allegations of non-compliance with the competitive neutrality principles made by a private entity against the Shire.

Structural Review of Public Monopolies

In relation to Structural review of public monopolies, the Shire of Esperance discloses the following:

Structural reform principles have been applied to the following number of activities in the reporting period: Zero (0); and

Structural reform principles have been considered but not applied to the following number of activities in the reporting period: Zero (0).

As no structural reform has been applied to any activities, the review requirements of principal SR.3 of Clause 7 of the Competition Policy Statement have not been undertaken.

Legislative Review

Parties to the National Competition Policy package agreed that legislation should not restrict competition unless:

The benefits of the restriction to the community as a whole outweigh the costs; and

The objectives of the legislation can only be achieved by restricting competition.

Accordingly, the Shire of Esperance is required to implement a systematic review of all of its existing legislation to determine whether there are any direct or indirect effects on competition.

The Local Government Act 1995 requires all existing Local Laws to be reviewed every eight years. As part of this process the intention to review Local Laws is advertised in the media giving residents and rate payers the opportunity to comment on any proposed changes, additions or deletions to the Shire’s Local Laws. For the 2011/2012 Financial year there were no changes to the Shire’s Local Laws:

• As at the reporting date the number of by-laws and Local Laws which have been reviewed and reformed as a result of any legislative review is Zero (0); and

• As at the reporting date the number of by-laws and Local Laws which the application of any legislative review principles were considered but not applied is Zero (0).

Corporate Services

45

Plan for the Future

Section 5.56 of the Local Government Act 1995 (the Act) requires a local government to plan for the future of the district. Furthermore, Section 5.53(e) of the Act requires local government to provide an overview of the Plan for the Future in its Annual Report, including major initiatives that are proposed to commence or continue in the following financial year.

The Shire’s Plan for the Future was last reviewed during 2009/2010 and nominates the following initiatives as projects of key strategic importance:

• Esperance Foreshore Protection and Enhancement Project, now known as the Esperance Waterfront Project

• Greater Sports Ground Redevelopment;

• Tanker Jetty Maintenance;

The Plan also identifies the imperatives of Asset Management and Information and Communication Technologies as key operational objectives for the Shire for the period of the Plan. The Shire has performed significant work in both of these areas to ensure sustainable asset management is planned for now and into the future and that new technologies are embraced when proven efficiencies can be identified.

A copy of the Plan is available from the Administration Office or from the Shire website www.esperance.wa.gov.au

Employee Remuneration

Pursuant to Regulation 19B of the Local Government (Administration) Regulation 1996, the following table sets out, in bands of $10,000, the number of Shire employees entitled to an annual salary of $100,000 or more:

Salary Band (S) 2012 2011 2010$100,000 - $109,999 - 3 2$110,000 - $119,999 2 1 -$120,000 - $129,999 2 - -$160,000 - $169,000 - - 1$170,000 - $179,999 - 1 -$200,000 – 209,999 1 - -

Complaints

Section 5.53(2)(hb) of the Local Government Act 1995 requires the Annual report to contain details of entries made under section 5.121 during the financial year in the Register of Complaints. The 2011/2012 year saw zero (0) entries made in this regard.

TABLE OF CONTENTS

PageStatement by Chief Executive Officer (i)

Independent Audit Report (ii) - (iii)

Statement of Comprehensive Income by Nature or Type 1Statement of Comprehensive Income by Program 2Statement of Financial Position 3Statement of Changes in Equity 4Statement of Cash Flows 5Rate Setting Statement 6

Notes to and Forming Part of the Financial Report NoteSignificant Accounting Policies 1 7Revenues and Expenses 2 21Cash and Cash Equivalents 3 26Trade and Other Receivables 4 27Inventories 5 27Property, Plant and Equipment 6 28Infrastructure 7 30Trade and Other Payables 8 32Long Term Borrowings 9 32Provisions 10 32Reserves - Asset Revaluation 11 32Reserves - Cash Backed 12 33Notes to the Cash Flow Statement 13 39Capital and Leasing Commitments 14 40Contingent Liabilities 15 40Joint Venture 16 40Assets by Function and Activity 17 41Financial Ratios 18 41Trust Funds 19 42Disposal of Assets 20 42Information on Borrowings 21 43Rating Information 22 45Discounts, Incentives, Concessions and Write-offs 23 48Interest Charges and Instalments 24 48Fees and Charges 25 49Grant Revenue 26 49Employee Numbers 27 49Councillors' Remuneration 28 49

Major Land Transactions 29 50Major Trading Undertakings 30 53Financial Risk Management 31 55

SHIRE OF ESPERANCEWindich Street, Esperance Western Australia, 6450

Tel: (08) 9071 0666, Fax: (08) 9071 0600 Email: shire @esperance.wa.gov.auwww.esperance.wa.gov.au

Annual Financial Report For the year ended 30th June 2012

Table of Contents

2011-12

(i)


Audit Report

2011-12

(ii)


Audit Report

2011-12

(iii)


Audit Report

2011-12

NOTE 2012 2012 2011Actual Budget Actual

$ $ $RevenueRates 22 12,187,696 12,236,861 11,388,430Operating Grants, Subsidies and Contributions 26 9,230,839 6,115,712 8,032,526Fees and Charges 25 6,395,373 5,687,890 6,528,332Interest Earnings 2(a) 1,190,025 772,000 980,277

29,003,933 24,812,463 26,929,565

ExpensesEmployee Costs (11,757,213) (11,471,982) (10,732,697) Materials and Contracts (6,521,682) (6,024,493) (7,102,086) Utility Charges (936,309) (918,740) (728,678) Depreciation on Non-Current Assets 2(a) (8,588,017) (8,579,880) (8,606,104) Interest Expenses 2(a) (54,999) (57,761) (43,600) Insurance Expenses (excludes W.Comp) (473,578) (462,568) (421,886) Other Expenditure (529,470) (616,220) (570,861)

(28,861,268) (28,131,644) (28,205,912)

Sub-total 142,665 (3,319,181) (1,276,347)

Non-Operating Grants, Subsidies and Contributions 26 19,398,853 5,421,445 3,789,965Profit on Asset Disposals 20 329,180 83,872 442,888Loss on Asset Disposal 20 (16,187) (83,071) (89,079)

NET RESULT 19,854,511 2,103,065 2,867,427

Other Comprehensive Income - - -

Total Other Comprehensive Income - - -

TOTAL COMPREHENSIVE INCOME 19,854,511 2,103,065 2,867,427

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


Statement of Comprehensive Income by Nature & Type

2011-12


$ $ $RevenueGovernance 221,647 126,750 216,988General Purpose Funding 18,643,845 16,019,419 16,369,377Law, Order, Public Safety 351,855 320,989 758,791Health 158,405 154,853 161,395Education and Welfare 2,353,543 2,201,294 2,218,181Community Amenities 2,659,854 2,299,800 2,569,867Recreation and Culture 2,005,803 1,575,975 1,592,547Transport 1,298,901 1,094,950 1,251,687Economic Services 690,127 407,433 711,155Other Property and Services 619,953 611,000 1,079,577

2 (a) 29,003,933 24,812,463 26,929,565Expenses Excluding Finance CostsGovernance (1,219,015) (1,095,029) (1,087,820) General Purpose Funding (384,080) (434,355) (341,288) Law, Order, Public Safety (1,154,889) (1,152,935) (1,945,899) Health (412,662) (386,501) (316,940) Education and Welfare (2,542,779) (2,545,960) (2,401,933) Community Amenities (3,783,020) (3,409,747) (3,538,407) Recreation & Culture (5,806,630) (5,442,619) (5,741,809) Transport (10,996,849) (10,848,353) (10,697,382) Economic Services (1,651,299) (1,873,370) (1,010,423) Other Property and Services (855,046) (885,014) (1,080,411)

2 (a) (28,806,269) (28,073,883) (28,162,312) Finance CostsRecreation & Culture (54,491) (57,761) (48,833) Other Property and Services (508) - 5,233

(54,999) (57,761) (43,600) Non-Operating Grants, Subsidies and ContributionsLaw, Order, Public Safety 26,227 12,713 38,190 Education and Welfare 22,651 20,000 99,213 Recreation & Culture 1,269,175 1,145 399,944 Transport 4,069,934 5,387,587 3,252,618 Economic Services 13,942,866 - - Other Property and Services 68,000 - -

19,398,853 5,421,445 3,789,965 Profit on Disposal of AssetsLaw, Order, Public Safety - 234 - Education and Welfare 909 - - Community Amenities - 4,484 - Transport 177,699 79,154 56,608 Other Property and Services 150,572 - 386,280

329,180 83,872 442,888 Loss on Disposal of AssetsGovernance - - (6,041) Law, Order, Public Safety (4,924) (2,646) (6,996) Community Amenities (6,691) - (5,002) Transport (4,572) (75,884) (52,432) Economic Services - (3,839) - Other Property and Services - (702) (18,608)

(16,187) (83,071) (89,079)

NET RESULT 19,854,511 2,103,065 2,867,427

Other Comprehensive Income - - - Total Other Comprehensive Income - - -

TOTAL COMPREHENSIVE INCOME 19,854,511 2,103,065 2,867,427This statement is to be read in conjunction with the accompanying notes.


Statement of Comprehensive Income by Program

2011-12

NOTE 2012 2011Actual Actual

$ $CURRENT ASSETSCash and Cash Equivalents 3 32,946,714 13,974,222Trade and Other Receivables 4 2,160,390 2,065,552Inventories 5 395,813 394,803TOTAL CURRENT ASSETS 35,502,917 16,434,577

NON-CURRENT ASSETSOther Receivables 4 845,458 925,907Inventories 5 10,604,952 10,410,993Property, Plant and Equipment 6 36,214,149 35,167,321Infrastructure 7 196,268,937 194,629,455TOTAL NON-CURRENT ASSETS 243,933,496 241,133,676

TOTAL ASSETS 279,436,413 257,568,253

CURRENT LIABILITIESTrade and Other Payables 8 2,638,200 903,627Current Portion of Long Term Borrowings 9 127,779 76,541Provisions 10 1,591,472 1,534,149TOTAL CURRENT LIABILITIES 4,357,451 2,514,317

NON-CURRENT LIABILITIESLong Term Borrowings 9 8,973,938 8,840,972Provisions 10 219,170 181,621TOTAL NON-CURRENT LIABILITIES 9,193,108 9,022,593

TOTAL LIABILITIES 13,550,559 11,536,910

NET ASSETS 265,885,854 246,031,343

EQUITYRetained Surplus 236,122,784 232,356,754Reserves - Cash Backed 12 29,763,070 13,674,589TOTAL EQUITY 265,885,854 246,031,343


2011-12


Statement of Financial Position

RESERVES ASSETRETAINED CASH REVALUATION TOTAL

NOTE SURPLUS BACKED RESERVE EQUITY$ $ $ $

Balance as at 1 July 2010 127,415,662 11,363,104 104,385,150 243,163,916

Correction of Errors 104,385,150 0 (104,385,150) 0Restated Balance 11 231,800,812 11,363,104 0 243,163,916

Net Result 2,867,427 - - 2,867,427

Total Other Comprehensive Income - - - -

Transfers from/(to) Reserve (2,311,485) 2,311,485 - -

Balance as at 30 June 2011 232,356,754 13,674,589 0 246,031,343

Net Result 19,854,511 - - 19,854,511

Total Other Comprehensive Income - - - -

Transfers from/(to) Reserve (16,088,481) 16,088,481 - -

Balance as at 30 June 2012 236,122,784 29,763,070 0 265,885,854


2011-12


Statement of Changes in Equity


Cash Flows From Operating Activities $ $ $ReceiptsRates 12,217,845 12,258,861 11,362,217Operating Grants, Subsidies and Contributions 9,445,780 6,190,712 8,318,079Fees and Charges 6,219,060 5,833,469 6,552,302Interest Earnings 1,082,155 772,000 976,483Goods and Services Tax 3,028,167 2,100,000 1,690,512

31,993,007 27,155,042 28,899,593PaymentsEmployee Costs (11,580,123) (11,272,427) (10,557,396)Materials and Contracts (6,104,917) (5,093,238) (7,629,535)Utility Charges (895,809) (918,740) (750,985)Insurance Expenses (473,578) (462,568) (421,886)Interest Expenses (49,471) (57,761) (48,882)Goods and Services Tax (1,828,014) (2,100,000) (1,835,141)Other Expenditure (528,220) (616,220) (570,861)

(21,460,132) (20,520,954) (21,814,686)Net Cash Provided By Operating Activities 13(b) 10,532,875 6,634,088 7,084,907

Cash Flows from Investing ActivitiesPayments for Development of Land Held for Resale (469,441) (104,262) (1,050,984)Payments for Purchase of Property, Plant & Equipment (3,400,400) (6,299,078) (2,390,192)Payments for Construction of Infrastructure (8,146,229) (9,078,709) (7,103,076)Advances to Community Groups (59,395) - (410,000)Proceeds from Self Supporting Loans 63,659 113,837Non-Operating Grants, Subsidies and Contributions used for the Development of Assets 19,398,853 5,421,445 3,789,965Proceeds from Sale of Assets 868,366 662,762 1,268,771Net Cash Used InInvesting Activities 8,255,413 (9,397,842) (5,781,679)

Cash Flows from Financing ActivitiesRepayment of Debentures (263,659) (78,611) (245,543)Proceeds from New Debentures 447,863 64,330 809,877Net Cash Provided By (Used In)Financing Activities 184,204 (14,281) 564,334

Net Increase (Decrease) in Cash Held 18,972,492 (2,778,035) 1,867,562Cash at Beginning of Year 13,974,222 13,945,514 12,106,660Cash and Cash Equivalents at the End of the Year 13(a) 32,946,714 11,167,479 13,974,222


2011-12


Statement of Cash Flows

2012 2012 2011NOTE Actual Budget Actual

$ $ $RevenueGovernance 221,647 126,750 216,988General Purpose Funding 6,456,149 3,782,558 4,980,947Law, Order, Public Safety 378,082 333,936 796,981Health 158,405 154,853 161,395Education and Welfare 2,377,103 2,221,294 2,317,394Community Amenities 2,659,854 2,304,284 2,569,867Recreation and Culture 3,274,978 1,577,120 1,992,491Transport 5,546,534 6,561,691 4,560,913Economic Services 14,632,993 407,433 711,155Other Property and Services 838,525 611,000 1,465,857

36,544,270 18,080,919 19,773,988ExpensesGovernance (1,219,015) (1,095,029) (1,093,861)General Purpose Funding (384,080) (434,355) (341,288)Law, Order, Public Safety (1,159,813) (1,155,581) (1,952,895)Health (412,662) (386,501) (316,940)Education and Welfare (2,542,779) (2,545,960) (2,401,933)Community Amenities (3,789,711) (3,409,747) (3,543,409)Recreation & Culture (5,861,121) (5,500,380) (5,790,642)Transport (11,001,421) (10,924,237) (10,749,814)Economic Services (1,651,299) (1,877,209) (1,010,423)Other Property and Services (855,554) (885,716) (1,093,786)

(28,877,455) (28,214,715) (28,294,991)

Net Result Excluding Rates 7,666,815 (10,133,796) (8,521,003)Adjustments for Cash Budget Requirements:

Non-Cash Expenditure and Revenue

(Profit)/Loss on Asset Disposals 20 (312,993) (801) (353,809)Movement in Provisions and Accruals 47,015 153,639 70,069Movement in Deferred Pensioner Rates & Sundry Debtors (non-current)

24,947 - 27,218

Depreciation and Amortisation on Assets 2(a) 8,588,017 8,579,880 8,606,104Capital Expenditure and Revenue

Purchase Land Held for Resale (469,441) (104,262) (1,050,984)Purchase Land and Buildings (1,943,386) (3,650,893) (368,738)Purchase Infrastructure Assets - Roads (6,505,702) (7,697,575) (5,963,412)Purchase Infrastructure Assets - Other (1,640,527) (1,381,134) (1,139,664)Purchase Plant and Equipment (1,285,060) (2,599,120) (1,931,018)Purchase Furniture and Equipment (171,954) (49,065) (90,436)Proceeds from Disposal of Assets 20 868,366 662,762 1,268,771Repayment of Debentures 21(a) (263,659) (78,611) (245,543)Proceeds from New Debentures 21(a) 447,863 64,330 809,877Advances to Community Groups (59,395) (64,330) (410,000)Self-Supporting Loan Principal Income 63,659 78,611 113,837Transfers to Reserves (Restricted Assets) 12 (20,120,053) (1,923,175) (5,655,140)Transfers from Reserves (Restricted Assets) 12 4,005,772 4,730,286 3,343,655

Surplus/(Deficit) July 1 B/Fwd 22(b) 939,573 1,196,393 1,041,359Surplus/(Deficit) June 30 C/Fwd 2,067,553 20,000 939,573Amount Required to be Raised from Rates 22(a) (12,187,696) (12,236,861) (11,388,430)


2011-12


Rate Setting Statement

1. SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies which have been adopted in the preparation of this financialreport are:

(a) Basis of PreparationThe financial report is a general purpose financial report which has been prepared in accordancewith Australian Accounting Standards (as they apply to local governments and not-for-profit entities),Australian Accounting Interpretations, other authoritative pronouncements of the Australia AccountingStandards Board, the Local Government Act 1995 and accompanying regulations.

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 ofselected non-current assets, financial assets and liabilities.

Critical Accounting Estimates

(b) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functions have beenincluded 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 balancesbetween 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 separatestatement of those monies appears at Note 19 to these financial statements.

(c) Goods and Services TaxRevenues, expenses and assets capitalised are stated net of any GST recoverable.Receivables and payables in the statement of financial position are stated inclusive ofapplicable GST. The net amount of GST recoverable from, or payable to, the ATO is includedwith receivables or payables in the statement of financial position.

Cash flows are presented on a Gross basis. The GST components of cash flows arising from investingor financing activities which are recoverable from, or payable to, the ATO are presented asoperating cash flows.

(d) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, cash at bank, deposits held at call with banks, othershort term highly liquid investments with original maturities of three months or less that are readily convertible to know amounts of cash which are subject to an insignificant risk of changes in value andbank overdrafts.Bank overdrafts are shown as short term borrowings in current liabilities on the statement of finanical position.

(e) Trade and Other Receivables

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Collectibility of trade 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.

2011-12


Notes to and forming part of the Financial Report

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(f) InventoriesGeneralInventories are measured at the lower of cost and net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Land Held for ResaleLand purchased for development and/or resale is valued at the lower of cost and net realisablevalue. Cost includes the cost of acquisition, development, borrowing cost and holding costs until completionof development. Finance costs and holding charges incurred after development is completed are expensed.

Revenue arising from the sale of property is recognised in the statement of comprehensive income as atthe time of signing an unconditional contract of sale.

Land held for resale is classified as current except where it is held as non-current based on Council's intentionto release for sale.

(g) Fixed AssetsEach class of fixed assets is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Initial RecognitionAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given asconsideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominalconsideration, cost is determined as fair value at the date of acquisition. The cost of non-current assetsconstructed 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.

Subsequent costs are included in the assets's carrying amount or recognised as a separate asset, asappropriate, only when it is probably that future economic benefits associated with the item will flow tothe 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 period in which they are incurred.

RevaluationCertain asset classes may be revalued on a regular basis such that the carying values are not materiallydifferent from fair value. For infrastructure and other asset classes where no active market exists, fairvalue is determined to be the current replacement cost of an asset less, where applicable, accumulateddepreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus inequity. Decreases that offset previous increases of the same asset are recognised against revaluation surplusdirectly in equity; all other decreases are recognised in profit or loss.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amountof the asset and the net amount is restated to the revalued amount of the asset.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less any subsequentaccumulated depreciation and accumulated impairment losses, are to be revalued with sufficient regularity toensure the carrying amount does not differ materially from that determined using fair value at reporting date.

2011-12




(g) Fixed Assets (Continued)

Land under Roads

Depreciation of Non-Current AssetsAll non-current assets having a limited useful life are separately and systematically depreciatedover their useful lives in a manner which reflects the consumption of the future economic benefitsembodied in those assets.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from thetime the asset is completed and held ready for use.

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

Buildings 20 to 50 yearsFurniture and Equipment 5 to 20 yearsMotor Vehicles 3 yearsRoad Making Plant 5 to 10 yearsOther Plant and Equipment 3 to 15 yearsInfrastructure

Roads and Streets - Construction Road Base 50 yearsRoads and Streets - Bituminous Seal 25 yearsFootpaths - slab 10 to 30 yearsParking Facilities 15 to 16 yearsWater Supply Piping and Drainage Systems 40 yearsParks and Gardens 20 yearsAirport 35 to 36 years

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the endof each reporting period.An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

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 an asset. Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail. Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.

2011-12 Annual Financial Report For the year ended 30th June 2012



(g) Fixed Assets (Continued)Gains and losses on disposals are determined by comparing proceeds with the carrying amount.These gains and losses are included in the statement of comprehensive income. When revaluedassets are sold, amounts included in the revaluation surplus relating to that asset are transferredto retained earnings.

Capitalisation ThresholdExpenditure on items of equipment under $5,000 is not capitalised. Rather, it is recorded on anasset inventory listing.

(h) Financial Instruments

Initial Recognition and MeasurementFinancial assets and financial liabilities are recognised when the Council becomes a party to the contractualprovisions to the instrument. For financial assets, this is equivalent to the date that the Council commits itselfto either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrumentis classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or lossimmediately.

Classification and Subsequent MeasurementFinancial instruments are subsequently measured at fair value, amortised cost using the effective interest ratemethod or cost.

Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fairvalue. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as:

(a) the amount in which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognisedand the maturity amount calculated using the effective interest rate method; and

(d) less any reduction for impairment.

The effective interest method used is to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees,transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliablypredicted, the contractual term) of the financial instrument to the net carrying amount of the financial assetor financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carryingvalue with a consequential recognition of an income or expense in profit or loss.

2011-12




(h) Financial Instruments (Continued)(i) Financial assets at fair value through profit and loss Financial assets at fair value through profit or 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. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and subsequently measured at amortised cost. Loans and receivables are included in current assets where they are expected to mature within 12 months after the end of the reporting period. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or determinable payments that the Council’s management has the positive intention and ability to hold to maturity. They are subsequently measured at amortised cost. Held-to-maturity investments are included in current assets, where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as non-current. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise of investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are included in current assets, where they are expected to be sold within 12 months after the end of the reporting period. All other financial assets are classified as non-current. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the Council assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in profit or loss. Any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit and loss at this point.

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(h) Financial Instruments (Continued)

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the Council no longer has any significant continual involvement in the risks and benefits associated with the asset.

Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of the consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(i) ImpairmentIn accordance with Australian Accounting Standards the Council's assets, other than inventories,are assessed at each reporting date to determine whether there is any indication they may be impaired.

Where such an indication exists, an impairment test is carried out on the asset by compairing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount.

Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profitor loss, unless the asset is carried at a revalued amount in accordance with another standard (eg AASB 116)whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard.

For non-cash generating assets such as roads, drains, public buildings and the like, value in use isrepresented by the depreciated replacement cost of the asset.

(j) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Council prior tothe end of the financial year that are unpaid and arise when the Council becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecuredand are usually paid within 30 days of recognition.

(k) Employee BenefitsProvision is made for the Council's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled.Employee benefits payable later that one year have been measured at the present value of the estimatedfuture cash outflows to be made for those benefits. In determining the liability, consideration is given toemployee wage increases and the probability that the employee may not satisfy vesting requirements.Those cash flows are discounted using market yields on national government bonds with terms to maturitythat match the expected timing of cash flows.

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(l) Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as partof the cost of the particular asset.

(m) Provisions

(n) LeasesLeases of fixed assets, where substantially all the risks and benefits incidental to the ownershipof the asset, but not legal ownership, are transferred to the Council, are classified as financeleases. Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated usefullives or the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with thelessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straightline basis over the life of the lease term.

(o) Joint VentureThe Council’s interest in a joint venture has been recognised in the financial statements byincluding its share of any assets, liabilities, revenues and expenses of the joint venture withinthe appropriate line items of the financial statement. Information about the joint venture is set out in Note 16.The Council's interests in joint venture entities are recorded using the equity method of accountingin the financial report.

Where the Council contributes assets to the joint venture or if the Council purchases assets from thejoint venture, only the portion of the gain or loss that is not attributable to the Council's share of thejoint venture shall be recognised. The Council recognises the full amount of any loss when thecontribution results in a reduction in the net realisable value of current assets or an impairment loss.

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 to settle the obligation; and (c) that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

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(p) Rates, Grants, Donations and Other ContributionsRates, grants, donations and other contributions are recognised as revenues when the localgovernment obtains control over the assets comprising the contributions. Control over assetsacquired from rates is obtained at the commencement of the rating period or, where earlier, uponreceipt of the rates.

Where contributions recognised as revenues during the reporting period were obtained on thecondition that they be expended in a particular manner or used over a particular period, and thoseconditions were undischarged as at the reporting date, the nature of and amounts pertaining tothose undischarged conditions are disclosed in Note 2(c). That note also discloses the amountof contributions recognised as revenues in a previous reporting period which were obtained inrespect of the local government's operations for the current reporting period.

(q) SuperannuationThe Council contributes to a number of Superannuation funds on behalf of employees.All funds to which the Council contributes are defined contribution plans.

(r) Current and Non-Current Classification

(s) Rounding Off FiguresAll figures shown in this annual financial report, other than a rate in the dollar, are rounded to thenearest dollar.

(t) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changes in presentationfor the current financial year.When the Council applies an accounting policy retrospectively, makes a retrospective restatement orreclassifies items in its financial statement, a statement of financial position as at the beginning of theearliest period will be disclosed.

(u) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annual financial report relate tothe original budget estimate for the relevant item of disclosure.

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 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

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(v) New Accounting Standards and Interpretations for Application in Future Periods

Title and Topic Issued Applicable (*) Impact

(i) December 2009 01 January 2013

(ii) June 2010 01 July 2013

(iii) December 2009 01 January 2013

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Council for the annual reporting period ending 30 June 2012. Council’s assessment of these new standards and interpretations is set out below:

AASB 9– Financial Instruments

AASB 1053– Application of Tiers of Australian Accounting Standards

Nil – The objective of this Standard is to improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. Given the nature of the financial assets of the Council, it is not anticipated the standard will have any material effect. Nil – Due to its nature and statutory requirements the Council will be deemed a Tier 1 entity and will continue to prepare general purpose financial statements.

AASB 2009 - 11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12]

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).

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(v) New Accounting Standards and Interpretations for Application in Future Periods (Continued)


(iv) June 2010 01 July 2013

(v) December 2010 1 January 2013

(vi) December 2010 1 January 2012

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108 ,110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129, & 1052]

Nil – None of these amendments will have any effect on the financial report as the standard does not apply in the case of general purpose financial statements.

AASB 2010 - 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [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]

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 2010 - 8 Amendments to Australian Accounting Standards - Deferred Tax: Recovery of Underlying Assets [AASB 112]

Nil - None of these amendment wills have any effect on the financial report as none of the topics are relevant to the operations of the Council.

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(vii) December 2010 1 January 2013

(viii) May 2011 1 July 2013

May 2011 1 July 2012

July 2011 1 July 2013

AASB 2010 - 10 Further Amendments to Australian Accounting Standards - Removal of Fixed Dates for First-time Adopters [AASB 2009-11 & AASB 2010-7]

Nil – None of these amendments will have any effect on the financial report as none of the topics are relevant to the operations of the Council.

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AASB 2011 - 2 Amendments to Australian Accounting Standards - Arising from the Trans - Tasman Consequence Project - Reduced Disclosure Requirements [AASB 101 & AASB 1054]

Nil - None of these amendments will have any effect on the financial report as none of the topics are relevant to the operations of the Council.

AASB 2011 - 3 Amendments to Australian Accounting Standards - Orderly Adoption of Changes to ABS GFS manual and related Amendments. [AASB 1049]

AASB 2011 - 6 Amendments to Australian Accounting Standards - Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation - Reduced Disclosure Requirements [AASB 127, 128 & 131]




(ix) August 2011 1 January 2013

(x) September 2011 1 January 2013

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 Standards arising from the Consolidation and Joint Arrangement Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 131, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

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 supercede 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 on the Council.

AASB 13 - Fair Value Measurement AASB 2011 - 8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7 ,9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

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AASB 13 defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. AASB 13 requires: - Inputs to all fair value measurement to be categorised in accordance with a fair value hierarchy; and - Enhanced disclosures regarding all assets and liabilities (including, but not limited to financial assets and financial liabilities) measured at fair value. AASB 13 will have particular relevance to the process of the Council adopting fair value methodology in relation to its fixed assets as mandated from 1 July 2012. Apart from the changes in value in relation to assets to be revalued (which are mandated by legislation and not changes to the standard) it is not expected to significantly impact the Council as the framework embodied in AASB 13 does not differ significantly from that which is present in existing standards. The amendments to the legislation requires the phasing in of fair value in relation to fixed assets over the three years from 1 July 2012. It is not possible to estimate the likely amount of any revaluations.




(xi) September 2011 1 July 2013

(xii) September 2011 1 January 2013

Notes:

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. It effects presentation only and is not expected to significantly impact the Council.

AASB 2011 - 9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

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AASB 119 - Employee Benefits AASB 2010 - 10 Amendments to Australian Accounting Standards arising from AASB 119 [AASB 1, 8, 101, 124, 134, 1049 & 2011 - 8 and Interpretation 14]

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.




(xiii) September 2011 1 July 2013

November 2011 1 January 2013

December 2011 1 July 2012

(w) 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. These new and revised standards were: AASB 124 AASB 1054 AASB 2009-12 AASB 2010-4 AASB 2010-5 AASB 2010-6 AASB 2010-9 AASB 2010-14 AASB 2011-1 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.

AASB 2011 - 11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements AASB 2011 - 12 Amendments to Australian Accounting Standards arising from Interpretation 20 [AASB 1] AASB 2011 - 13 Amendments to Australian Accounting Standards - Improvements to AASB 1049

Nil - None of these amendments will have any effect on the financial report as none of the topics are relevant to the operations of the Council.

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2. REVENUE AND EXPENSES 2012 2011Actual Actual

$ $(a) Net Result

The Net Result includes:

(i) Charging as an Expense:

Auditors Remuneration- Audit 33,909 23,850- Other Services 18,000 2,945

DepreciationBuildings 618,927 610,513Furniture and Equipment 43,409 37,676Plant and Equipment 1,249,025 1,208,822Construction other than Building 169,909 151,634Roads 5,802,398 5,625,435Lighting 23,617 21,240Footpaths 214,952 198,436Parks and Reserves 5,478 313,426Drainage 108,679 100,499Pipes 112,652 112,654Other 75,149 69,377Tourist Signs 2,453 2,237Airport 132,732 126,122Parking 28,637 28,033

8,588,017 8,606,104Interest Expenses (Finance Costs)Debentures (refer Note 21(a)) 54,999 43,600

Rental Charges- Operating Leases 83,846 128,481

(ii) Crediting as Revenue: 2012 2012 2011Actual Budget Actual

$ $ $Interest Earnings- Municipal Funds 438,891 294,000 396,165- Reserve Funds 659,501 400,000 498,232- Other Interest Revenue (refer note 24) 91,633 78,000 85,880

1,190,025 772,000 980,277

Significant IncomeEconomic ServicesSupertowns Project Funding 13,222,867 0 0

The significant income relates to Royalties for Regionsfunding through Supertowns for the Esperance Waterfront,Economic Development & Town Centre Revitalisation Project.

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2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective

COMMUNITY VISION : We make IT happen!The spirit of Esperance is unique, we take pride in being a creative, caring and supportive community.We live in a diverse and dynamic region with outstanding opportunities for all. As custodians, we arecommitted to protect our spectacular natural environment. Esperance has a sense of community ownership with commitment to determine is own direction.

The Shire of Esperance is dedicated to providing high quality services to the community throughthe various service orientated programs which it has established.

GOVERNANCEObjective : To provide a decision making process for the efficient allocation of scarce resourcesActivities : Includes the activities of members of council (Councillors) and the administrative supportavailable to the Council for the provision of governance of the district. Other costs relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council services.

GENERAL PURPOSE FUNDINGObjective : To collect revenue to allow for the provision of services.Activities : Rates, general purpose government grants, and interest revenue.

LAW, ORDER, PUBLIC SAFETYObjective: To provide services to help ensure a safer and environmentally conscious community.Activities : Supervision and enforcement of various local laws relating to fire prevention, animal control and protection of the environment other aspects of public safety including emergency services.

HEALTHObjective: To provide an operational framework for good community healthActivities : Inspection of food outlets and their control as well as provision of meat inspection services, noise control, and waste disposal compliance.

EDUCATION AND WELFAREObjective: To provide services to disadvantaged persons, the elderly, children and youthActivities : Maintenance of child minding centre, playgroup centre, senior citizens centre and aged care centre. Provision and maintenance of home & community care programs and youth support services.

COMMUNITY AMENITIESObjective : To provide services required by the communityActivities : Rubbish collection services, operation of rubbish disposal sites, litter control, construction and maintenance of urban storm water drains, protection of the environment and administration of townplanning schemes, cemetery and public conveniences.

RECREATION AND CULTUREObjective : To establish and effectively manage infrastructure and resources which will help the socialwell being of the communityActivities : Maintenance of public halls, civic centre, aquatic centre, beaches, recreation centres and various sporting facilities. Provision and maintenance of parks, gardens and playgrounds. Operation of library, museum and other cultural facilities.

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(b) Statement of Objective (continued)

TRANSPORTObjective : To provide safe, effective and efficient transport services to the community.Activities : Construction and maintenance of roads, streets, footpaths, depots, cycleways, parking facilities and traffic control. Cleaning of streets and maintenance of street trees, street lighting etc. Provision and operation of airport.

ECONOMIC SERVICESObjective: To help promote the shire and it's economic wellbeing.Activities : Tourism and area promotion including the maintenance and operation of a caravan park. Provision of rural services including weed control, vermin control and standpipes. Building control.

OTHER PROPERTY AND SERVICESObjective: To monitor and control Council's overheads operating accounts.Activities : Private works operation, plant repair and operation costs and engineering operation costs.

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(c) CONDITIONS OVER CONTRIBUTIONS

Opening Recognised Spent Restricted Opening Recognised Spent RestrictedBalance (1) as Revenue (2) or Used (3) Reserve Balance (1) as Revenue (2) or Used (3) Reserve1/07/2010 30/06/2011 1/07/2011 30/06/2012

General Purpose FundingRoyalties for Regions 601,676 - (265,501) 336,175 336,175 - (336,175) - Governance & AdministrationForward Capital Works Plan Grant 35,000 - (35,000) - - - - - Law, Order & Public SafetyGrant - Co-Location Facility 460,018 379,187 (839,205) - - - - - FESA - Fire Prevention FESA - - - - - 194,716 (187,256) 7,460 LEMC - BHP Sponsorship 43,465 - (40,023) 3,442 3,442 - (1,547) 1,895 Safer WA Committee Subsidy 2,346 - (2,346) - - - - - Horizon Power Sponsorship - - - - - 10,000 - 10,000 State Graffiti Fund - - - - - 13,627 - 13,627 Education & WelfareGrant - Disability & Inclusion Plan 1,653 - (1,653) - - - - - Grant - HACC Seniors Leisure Link 4,000 - - 4,000 4,000 - - 4,000 Grant - Hearing Impaired Pilot Project 4,417 - - 4,417 4,417 - - 4,417 Grant - Other Programs - 13,868 - 13,868 13,868 12,665 - 26,533 Grant - HACC Operating 11/12 18,732 6,385 - 25,117 25,117 34,019 - 59,136 Grant - HACC Capital 126,054 99,213 (9,554) 215,713 215,713 22,651 (185,829) 52,535 Grant - VMP CPO 17,734 - (4,665) 13,069 13,069 4,442 - 17,511 Grant - NRCP Capital 7,000 - (7,000) - - - - - Grant - NRCP Operating 652 - (652) - - - - - Grant - CACP 1,954 - (1,954) - - - - - Grant - EACH Capital 19,041 - (19,041) - - - - - Grant - EACH Operating 5,794 - (5,794) - - - - - Grant - Seniors Project 9,300 - (9,300) - - - - - Community AmenitiesGrant - SCNRM Environmental Weed Project 4,772 - (66) 4,706 4,706 - - 4,706 Grant - Dieback Works #1 & 2 36,000 - (31,515) 4,485 4,485 - - 4,485 Grant - Lovers Cove - - - - - 5,835 (4,709) 1,126

Balance carried to next page 1,399,608 498,653 (1,273,269) 624,992 624,992 297,955 (715,516) 207,431 Notes(1) Grants/contributions recognised as revenues in a previous reporting period which were not expended at the close of the previous reporting period.(2) New grants/contributions which were recognised as revenues during the reporting period and which had not yet been fully expended in the manner specified by the contributor.(3) Grants/contributions which have been recognised as revenues in a previous reporting period or received in the current reporting period and which were expended in the current

reporting period in the manner specified by the contributor.

2011 2012



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(c) CONDITIONS OVER CONTRIBUTIONS (Continued)

Opening Recognised Spent Restricted Opening Recognised Spent RestrictedBalance (1) as Revenue (2) or Used (3) Reserve Balance (1) as Revenue (2) or Used (3) Reserve 1/07/2010 30/06/2011 1/07/2011 30/06/2012

$ $ $ $ $ $ $ $Balance from previous page 1,399,608 498,653 (1,273,269) 624,992 624,992 297,955 (715,516) 207,431

Recreation & CultureGrant - RLCIP Solar Panals 88,995 126,841 (199,492) 16,344 16,344 - - 16,344 Grant - Southcoast NRM Castletown Quays 2,128 - (2,128) - - - - - Grant - Magellan - Lions Playground Equipme 28,000 - (28,000) - - - - - Grant - Magellan - Lions Playground Equipme - - - - - 15,000 (10,985) 4,015 TRust - POS - Treasure Road Park Upgrade 61,000 - (61,000) - - - - - Grant - WALGA Physical Activity 29,653 - (29,653) - - - - - Grant - Tanker Jetty Structural Assessment 38,265 - (20,050) 18,215 18,215 - (11,202) 7,013 Grant - National Science Week - Library 909 909 (1,058) 760 760 - (760) - Grant - Telstra Connected Seniors - - - - - 5,000 (167) 4,833 Grant - PLA Storytime on Stage - - - - - 500 - 500 Grant - RLCIP - Walker Street Playground - 115,000 (3,465) 111,535 111,535 - (111,535) - Grant - Accessible Communities - 11,615 - 11,615 11,615 - (11,615) - Grant - Department of Agriculture - 21,805 (3,996) 17,809 17,809 - (17,809) - Grant - NRM Walker Street Fencing & Signage - - - - - 20,000 - 20,000 Grant - Dept of Sport & Rec Kidsport Grant - - - - - 52,000 (14,451) 37,549 Grant - Dept of Regional Dev & Lands - Foresh - - - - - 1,045,000 - 1,045,000 Grant - Community Arts Catalyst - Walker St P - - - - - 10,000 (9,805) 195 Grant - Club Development Officer - - - - - 50,000 (49,175) 825 TransportGrant - Roadwise #491 6,423 - (580) 5,843 5,843 - (5,843) - Grant - Road Safety #286 - 17,050 (15,013) 2,037 2,037 - (2,037) - Grant - Roadwise Action Plan - 1,000 (657) 343 343 1,000 (580) 763 Contribution - DEC - Lake Road Floodway 20,589 - (20,589) - - - - - Contribution - Jetrio Pty Ltd - Footpath 15,000 - - 15,000 15,000 - - 15,000 Grant - DOT - Transport Security Screen Equip - - - - - 650,000 (218,214) 431,786 Economic ServicesContribution - Wild Dog Control 110,246 164,074 (168,318) 106,002 106,002 155,932 (145,595) 116,339 Supertowns Grant - - - - - 13,942,867 (484,113) 13,458,754 Grant - Department of Agriculture - 20,000 (16,000) 4,000 4,000 - (4,000) -

1,800,816 976,947 (1,843,268) 934,495 934,495 16,245,254 (1,813,402) 15,366,347 Notes (4)(1) Grants/contributions recognised as revenues in a previous reporting period which were not expended at the close of the previous reporting period.(2) New grants/contributions which were recognised as revenues during the reporting period and which had not yet been fully expended in the manner specified by the contributor.(3) Grants/contributions which have been recognised as revenues in a previous reporting period or received in the current reporting period and which were expended in the current

reporting period in the manner specified by the contributor.(4) All of the unspent grants/contributions are held as unrestricted cash in Unspent Grants & Contributions Reserve.

2011 2012



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2012 2011Actual Actual

$ $3. CASH AND CASH EQUIVALENTS

Unrestricted 3,183,644 299,633Restricted 29,763,070 13,674,589

32,946,714 13,974,222The following restrictions have been imposed byregulations or other externally imposed requirements:

Cash Reserves:Land Purchase & Development Reserve 890,054 777,983 Council Buildings Construction Reserve 174,378 16,125 Eastern Suburbs Water Pipeline Reserve 79,413 136,683 Jetty Reserve 696,877 1,552,851 Aerodrome Reserve 1,454,520 1,842,733 Salmon Gums Quarry Reserve 9,134 8,718 Municipal Museum Reserve - 2,597 Meat Inspection Reserve - - Off Street Parking Reserve 128,252 122,417 Sanitation (Rubbish Removal) Services Reserve 1,620,206 1,368,867 Esperance Home Care Fundraising Reserve 62,111 62,762 HACC Asset Replacement Reserve 191,935 126,963 Gravel Resources Compensation Reserve 49,382 47,135 Southern Suburbs Water Supply Reserve 34,649 38,756 Cemetery Reserve 32,103 27,778 Unspent Grants & Contributions Reserve 17,724,018 2,129,275 Historical Village Reserve 1,839 1,756 Plant Replacement Reserve 1,105,304 626,023 Employee Entitlements- Annual Leave Reserve - - Employee Entitlements- Long Service Leave Reserve 746,481 712,515 History Book Reserve 16,597 15,803 Tanker Jetty Donations Reserve 34,480 30,521 Library Reserve 32,541 28,805 Drainage Reserve 220,566 210,529 Building Maintenance Reserve 2,771,970 2,348,036 Community Bus Maintenance & Replacement Reserve 73,020 65,965 Governance & Workers Compensation Reserve 307,099 249,873

68,990 54,397 Staff Retention & Attraction Reserve 641,730 584,850 IT System & Process Development Reserve 316,506 246,520 Esperance Home Care Annual Leave Reserve 139,844 118,722 Esperance Home Care Long Service Leave Reserve 139,071 118,631

Total Reserves 29,763,070 13,674,589

Shark Lake Industrial Park - Environmental Monitoring and Landscape/Drainage Maintenance Reserve

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$ $4. TRADE AND OTHER RECEIVABLES

CurrentRates & Rubbish 134,030 179,232General Receivables 1,786,687 1,785,315Goods & Services Tax - 20,440Interest 111,894 4,024Self Supporting Loan Debtors 127,779 76,541

2,160,390 2,065,552Non-CurrentSelf Supporting Loan Debtors 736,244 791,746Rates Outstanding - Pensioners 69,214 54,161General Receivable 40,000 80,000

845,458 925,907

5. INVENTORIES

CurrentRoadmaking Materials 96,731 101,349Fuel & Oils 36,995 39,613Goods Held for Resale 81,339 65,504Land Held for Resale (Shark Lake Industrial Park) - - Land Held for Resale (Flinders) 180,748 188,337

395,813 394,803Non-CurrentLand Held for Resale (Shark Lake Industrial Park) 2,553,709 2,515,625Land Held for Resale (Flinders) 8,051,243 7,895,368

10,604,952 10,410,993

2011-12




$ $6. PROPERTY, PLANT AND EQUIPMENT(a)

Land and Buildings - Cost 34,698,847 33,434,666Less Accumulated Depreciation (9,051,259) (8,432,333)

25,647,588 25,002,333

Office Furniture - Cost - - Less Accumulated Depreciation - -

- -

Office Equipment - Cost 70,147 58,381Less Accumulated Depreciation (33,017) (23,126)

37,130 35,255

Other Furniture and Equipment - Cost 447,069 286,882Less Accumulated Depreciation (132,368) (98,851)

314,701 188,031

Plant and Equipment - Cost 1,800,215 1,724,533Less Accumulated Depreciation (1,230,852) (1,157,965)

569,363 566,568

Motor Vehicles - Cost 3,765,703 3,673,281Less Accumulated Depreciation (1,567,896) (1,337,252)

2,197,807 2,336,029

Construction other than buildings - Cost 3,884,028 3,204,824Less Accumulated Depreciation (1,763,067) (1,593,158)

2,120,961 1,611,666

Road Making Plant - Cost 8,970,835 8,817,517Less Accumulated Depreciation (3,644,236) (3,390,078)

5,326,599 5,427,439

Total Property Plant & Equipment 36,214,149 35,167,321

2011-12



6. PROPERTY, PLANT AND EQUIPMENT (Continued)

(b) Movements in Carrying Amounts

Movement in the carrying amounts of each class of property, plant and equipment between thebeginning and the end of the current financial year.

Land Other Plant Construction Road& Office Office Furniture & & Motor other than Making

Buildings Furniture Equipment Equipment Equipment Vehicles Buildings Plant Total$ $ $ $ $ $ $ $ $

Balance as at 1 July 2011 25,002,333 - 35,255 188,031 566,568 2,336,029 1,611,666 5,427,439 35,167,321

Additions 1,264,182 - 11,766 160,188 75,682 377,569 679,204 831,809 3,400,400

(Disposals) - - - - (134,052) - (138,250) (272,302)

Impairment - (losses) - - - - - - - - - - reversals

Depreciation (Expense) (618,927) - (9,891) (33,518) (72,887) (381,739) (169,909) (794,399) (2,081,270)

Other Movements - - - - - - - - -

Balance as at 30 June 2012 25,647,588 - 37,130 314,701 569,363 2,197,807 2,120,961 5,326,599 36,214,149



2011-12


$ $7. INFRASTRUCTURE

(a)Roads - cost 296,754,133 290,248,431 Less Accumulated Depreciation (115,872,713) (110,070,315)

180,881,420 180,178,116

Footpaths - cost 6,779,008 6,448,595 Less Accumulated Depreciation (2,282,774) (2,067,821)

4,496,234 4,380,774

Drainage - cost 4,775,393 4,347,164 Less Accumulated Depreciation (1,494,150) (1,385,471)

3,281,243 2,961,693

Culverts & Pipes - cost 4,506,113 4,506,113 Less Accumulated Depreciation (3,951,602) (3,838,950)

554,511 667,163

Parks & Ovals - Cost 6,268,506 6,268,506 Less Accumulated Depreciation (6,268,506) (6,263,028)

- 5,478

Street Lighting - Cost 720,264 681,001 Less Accumulated Depreciation (162,776) (139,159)

557,488 541,842

Tourist Road Signs - Cost 80,937 80,937 Less Accumulated Depreciation (17,129) (14,676)

63,808 66,261

Esperance Airport - Cost 5,028,769 4,606,255 Less Accumulated Depreciation (969,842) (837,110)

4,058,927 3,769,145

Parking - Cost 640,841 420,500 Less Accumulated Depreciation (345,415) (316,778)

295,426 103,722

Other - Cost 2,605,594 2,405,826 Less Accumulated Depreciation (525,714) (450,565)

2,079,880 1,955,261

Total Infrastructure Assets 196,268,937 194,629,455

2011-12



7. INFRASTRUCTURE (Continued)

(b) Movements in Carrying Amounts

Movement in the carrying amounts of each class of infrastructure between thebeginning and the end of the current financial year.

Culverts Parks Street Tourist Road EsperanceRoads Footpaths Drainage & Pipes & Ovals Lighting Signs Airport Parking Other

Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Total$ $ $ $ $ $ $ $ $ $ $

Balance as at 1 July 2011 180,178,116 4,380,774 2,961,693 667,163 5,478 541,842 66,261 3,769,145 103,722 1,955,261 194,629,455

Additions 6,505,702 330,412 428,229 - - 39,263 - 422,514 220,341 199,768 8,146,229

(Disposals) - - - - - - - - - - -

Impairment - (losses) - - - - - - - - - - - - reversals

Depreciation (Expense) (5,802,398) (214,952) (108,679) (112,652) (5,478) (23,617) (2,453) (132,732) (28,637) (75,149) (6,506,747)

Other Movements - - - - - - - - - - -

Balance as at 30 June 2012 180,881,420 4,496,234 3,281,243 554,511 - 557,488 63,808 4,058,927 295,426 2,079,880 196,268,937



2011-12


$ $8. TRADE AND OTHER PAYABLES

CurrentSundry Creditors 1,143,474 677,500 Accrued Interest on Long Term Borrowings 11,931 6,403 Accrued Salaries & Wages 303,082 219,724 Goods & Services Tax 1,179,713 -

2,638,200 903,627

9. LONG TERM BORROWINGS

(a) CurrentSecured by Floating Charge Debentures 127,779 76,541

127,779 76,541

(b) Non-CurrentSecured by Floating Charge Debentures 8,973,938 8,840,972

8,973,938 8,840,972

Additional detail on borrowings is provided in Note 21.

10. PROVISIONS

(a) CurrentProvision for Employee Annual Leave 839,611 770,632 Provision for Employee Long Service Leave 751,861 763,517

1,591,472 1,534,149 (b) Non-Current

Provision for Employee Long Service Leave 219,170 181,621 219,170 181,621

11. RESERVES - ASSET REVALUATION

Asset revaluation reserves arose on initial revaluation of asset classifications in prior years as follows:

$(a) Land and Buildings 14,914,317

(b) Roads 89,470,833

TOTAL 104,385,150

In 2011 (and previous years), these balances were disclosed as part of the Asset Revaluation Reserve balance despite thCouncil resolving to revert to deemed cost in accordance with the transition to AASB 1041 'Revaluation of Non-Current Aeffective from 1 July 2001. At the time of reverting to deemed cost the Asset Revaluation Reserve should have been transto Retained Surplus.

This prior period adjustment is necessary to reflect this correction.



2011-12

2012 2012 2011Actual Budget Actual

$ $ $12. RESERVES - CASH BACKED

(a) Land Purchase & Development ReserveOpening Balance 777,983 777,983 810,516 Transfer to Reserve 165,294 33,716 44,467 Transfer from Reserve (53,223) (106,000) (77,000) Closing Balance 890,054 705,699 777,983

(b) Council Buildings Construction ReserveOpening Balance 16,125 16,125 15,220 Transfer to Reserve 158,253 651 905 Transfer from Reserve - - - Closing Balance 174,378 16,776 16,125

(c) Eastern Suburbs Water Pipeline ReserveOpening Balance 136,683 136,683 202,748 Transfer to Reserve 6,515 7,667 12,052 Transfer from Reserve (63,785) (73,700) (78,117) Closing Balance 79,413 70,650 136,683

(d) Jetty ReserveOpening Balance 1,552,851 1,552,851 1,413,334 Transfer to Reserve 144,026 59,845 154,017 Transfer from Reserve (1,000,000) - (14,500) Closing Balance 696,877 1,612,696 1,552,851

(e) Aerodrome ReserveOpening Balance 1,842,733 1,842,733 1,465,380 Transfer to Reserve 87,845 497,618 377,353 Transfer from Reserve (476,058) (1,452,063) - Closing Balance 1,454,520 888,288 1,842,733

(f) Salmon Gums Quarry ReserveOpening Balance 8,718 8,718 8,229 Transfer to Reserve 416 352 489 Transfer from Reserve - - - Closing Balance 9,134 9,070 8,718

(g) Municipal Museum ReserveOpening Balance 2,597 2,597 2,451 Transfer to Reserve 124 105 146 Transfer from Reserve (2,721) - - Closing Balance - 2,702 2,597

(h) Meat Inspection ReserveOpening Balance - - - Transfer to Reserve - - - Transfer from Reserve - - - Closing Balance - - -

(i) Off Street Parking ReserveOpening Balance 122,417 122,417 102,621 Transfer to Reserve 5,835 4,140 19,796 Transfer from Reserve - - - Closing Balance 128,252 126,557 122,417



2011-12


$ $ $12. RESERVES - CASH BACKED (Continued)

(j) Sanitation (Rubbish Removal) Services ReserveOpening Balance 1,368,867 1,368,867 887,337 Transfer to Reserve 251,339 411,342 481,530 Transfer from Reserve - (734,074) - Closing Balance 1,620,206 1,046,135 1,368,867

(k) HACC Asset Replacement ReserveOpening Balance 126,963 126,963 56,387 Transfer to Reserve 64,972 2,412 70,576 Transfer from Reserve - - - Closing Balance 191,935 129,375 126,963

(l) Esperance Home Care Fundraising ReserveOpening Balance 62,762 62,762 19,468 Transfer to Reserve 2,993 3,874 43,294 Transfer from Reserve (3,644) (2,009) - Closing Balance 62,111 64,627 62,762

(m) Gravel Resources Compensation ReserveOpening Balance 47,135 47,135 44,490 Transfer to Reserve 2,247 1,861 2,645 Transfer from Reserve - (1,000) - Closing Balance 49,382 47,996 47,135

(n) Southern Suburbs Water Supply ReserveOpening Balance 38,756 38,756 56,684 Transfer to Reserve 1,847 2,373 8,133 Transfer from Reserve (5,954) (7,365) (26,061) Closing Balance 34,649 33,764 38,756

(o) Cemetery ReserveOpening Balance 27,778 27,778 23,624 Transfer to Reserve 4,325 3,614 4,154 Transfer from Reserve - - - Closing Balance 32,103 31,392 27,778

(p) Unspent Grants & Contributions ReserveOpening Balance 2,129,275 2,129,275 2,950,164 Transfer to Reserve 17,724,018 - 2,129,275 Transfer from Reserve (2,129,275) (2,129,275) (2,950,164) Closing Balance 17,724,018 - 2,129,275

(q) Historical Village ReserveOpening Balance 1,756 1,756 1,657 Transfer to Reserve 83 71 99 Transfer from Reserve - - - Closing Balance 1,839 1,827 1,756

(r) Plant Replacement ReserveOpening Balance 626,023 626,023 454,033 Transfer to Reserve 479,281 18,506 171,990 Transfer from Reserve - (76,800) - Closing Balance 1,105,304 567,729 626,023

(s) Employee Entitlements- Annual Leave ReserveOpening Balance - - 154,969 Transfer to Reserve - - 875 Transfer from Reserve - - (155,844) Closing Balance - - -



2011-12


$ $ $12. RESERVES - CASH BACKED (continued)

(t) Employee Entitlements- Long Service Leave ReserveOpening Balance 712,515 712,515 714,268 Transfer to Reserve 33,966 28,480 40,216 Transfer from Reserve - - (41,969) Closing Balance 746,481 740,995 712,515

(u) History Book ReserveOpening Balance 15,803 15,803 14,654 Transfer to Reserve 794 1,460 1,149 Transfer from Reserve - - - Closing Balance 16,597 17,263 15,803

(v) Tanker Jetty Donations ReserveOpening Balance 30,521 30,521 26,738 Transfer to Reserve 3,959 3,747 3,783 Transfer from Reserve - - - Closing Balance 34,480 34,268 30,521

(w) Library ReserveOpening Balance 28,805 28,805 25,986 Transfer to Reserve 3,736 2,882 2,819 Transfer from Reserve - - - Closing Balance 32,541 31,687 28,805

(x) Drainage ReserveOpening Balance 210,529 210,529 165,194 Transfer to Reserve 10,037 7,065 45,335 Transfer from Reserve - - - Closing Balance 220,566 217,594 210,529

(y) Building Maintenance ReserveOpening Balance 2,348,036 2,348,036 939,065 Transfer to Reserve 640,781 709,031 1,408,971 Transfer from Reserve (216,847) (75,000) - Closing Balance 2,771,970 2,982,067 2,348,036

(z) Community Bus Maintenance & Replacement ReserveOpening Balance 65,965 65,965 58,511 Transfer to Reserve 7,055 9,793 7,454 Transfer from Reserve - - - Closing Balance 73,020 75,758 65,965

(aa) Governance & Workers Compensation ReserveOpening Balance 249,873 249,873 170,048 Transfer to Reserve 99,726 7,273 79,825 Transfer from Reserve (42,500) - - Closing Balance 307,099 257,146 249,873

(ab) Shark Lake Industrial Park - Environmetal Monitoring andLandscape/Drainage MaintenanceReserveOpening Balance 54,397 54,397 40,018 Transfer to Reserve 14,593 1,712 14,379 Transfer from Reserve - - - Closing Balance 68,990 56,109 54,397



2011-12


$ $ $12. RESERVES - CASH BACKED (Continued)

(ac) Staff Retention & Attraction ReserveOpening Balance 584,850 584,850 363,256 Transfer to Reserve 56,880 14,873 221,594 Transfer from Reserve - (73,000) - Closing Balance 641,730 526,723 584,850

(ad) IT System & Process Development ReserveOpening Balance 246,520 246,520 176,054 Transfer to Reserve 81,751 80,017 70,466 Transfer from Reserve (11,765) - - Closing Balance 316,506 326,537 246,520

(ae) Esperance Home Care Annual Leave ReserveOpening Balance 118,722 118,722 - Transfer to Reserve 21,122 4,501 118,722 Transfer from Reserve - - - Closing Balance 139,844 123,223 118,722

(af) Esperance Home Care Long Service Leave ReserveOpening Balance 118,631 118,631 - Transfer to Reserve 20,440 4,194 118,631 Transfer from Reserve - - - Closing Balance 139,071 122,825 118,631

Total Cash Backed Reserves 29,763,070 10,867,478 13,674,589

All of the reserve accounts are supported by money held in financial institutions and match the amount shown as restricted cash in Note 3 to this financial report.

In accordance with council resolutions in relation to each reserve account, the purpose for whichthe reserves are set aside are as follows:

Land Purchase & Development ReserveEstablished to fund land improvements and sub-division development. Funded by land sales.

Council Buildings Construction ReserveEstablished to provide a fund for the construction of new community facilities and upgrading of existing Council owned buildings. Funded from General Purpose Income.

East Suburbs Water Pipeline ReserveEstablished to provide funds to recycle waste water to recreation grounds.Funded by the proceeds from the sale of water.

Jetty ReserveEstablished to provide funds for future maintenance and repair of the main jetty opposite GladstoneStreet. Funded from General Purpose Income.

Aerodrome ReserveEstablished to fund future development and upgrades of the airport facility. Funded by the annual surplus derived from operation of the airport.

Salmon Gums Quarry ReserveEstablished to fund the rehabilitation of the Salmon Gums Quarry following exhaustion of its gravel reserves. Funded from General Purpose Income.

Municipal Museum ReserveEstablished to provide funds for future major repairs or renovations to the museum building. Funded from the annual surplus derived from museum entrance fees after expenses.



2011-12

12. RESERVES - CASH BACKED (Continued)

Meat Inspection ReserveA contingency fund for the purpose of employing a meat inspector if the existing contracted meat inspection service failed to fulfil its obligations.

Off Street Parking ReserveEstablished to provide funds for the future development of central business car parking in order to make provisions for future business expansion of the CBD. Funded from General Purpose Income.

Sanitation (Rubbish Removal) Services ReserveEstablished to fund the purchase of major sanitation equipment and for the future development of waste disposal facilities. Funded from the annual surplus derived from property rubbish disposal/ collection fees after expenses.

HACC Asset Replacement ReserveEstablished for the purpose of holding surplus cash from the operation of HACC activities byEsperance Home Care in accordance with HACC guidelines.

Esperance Home Care Fundraising ReserveEstablished for the purpose of holding the net proceeds of volunteer fundraising activities relating tothe operation of Esperance Home Care.

Gravel Resources Compensation ReserveEstablished for the purpose of paying compensation to land owners for damages and inconvenience.caused by Council accessing gravel supplies on private property under the provisions of the Local Government and Public Works Act Legislation. Also used to fund works provided by Council by agreement with the landowner in lieu of a compensation payment. Funded from General Purpose Income.

Southern Suburbs Water Supply ReserveEstablished to provide funds to recycle waste water to recreation grounds. Funded by the proceeds of the sale of water.

Cemetery ReserveEstablished to fund Maintenance at the Shire of Esperance Cemetery

Unspent Grants & Contributions ReserveEstablished for the purpose of containing funds that are derived from unspent or prepaid grants and contribution from external parties. Funded from external sources.

Historical Village ReserveEstablished to fund future improvements and major building repairs at the historical village. Funded from the surplus derived from on site property rentals after operating and maintenance expenses.

Plant Replacement ReserveCouncil’s Policy is to minimise and if possible eliminate any need to rely upon loan finance or unreasonable rate increases to finance the acquisition of major plant items. Funding is from the General Purpose Income. Amounts allocated will be re-assessed annually in response to revisions of the five year plant replacement program and the associated forward cost estimates.

Employee Entitlements- Annual Leave ReserveDuring the year this reserve was closed with the funds transferred to EHC Employee A/Leave Entitlements Reserve and EHC Employee Long Service Leave Entitlements Reserve.

Employee Entitlements- Long Service Leave ReserveThe purpose of this Reserve is to fund a portion of future commitments for employee entitlements incurred as a result of employing staff and workers in relation to Long Service Leave.

History Book ReserveEstablished to accumulate the proceeds from the sale of the Shire of Esperance history book. Theaccumulated funds are intended to offset future printing costs of the history book.

Tanker Jetty Donations ReserveEstablished to accumulate donated funds for the restoration and maintenance of the tanker jetty.



2011-12

12. RESERVES - CASH BACKED (Continued)

Library ReserveEstablished to hold the net proceeds from computer user charges at the Library to be used forthe future replacement and improvement of computer facilities to the general public.

Drainage ReserveEstablished to hold contributions made to the Council by Developers for the establishment of Drainage within the Esperance District.

Building Maintenance ReserveEstablished to hold unexpended funds from the Building Maintenance Program for the use of building maintenance and refurbishment of Council buildings.

Community Bus Maintenance & Replacement ReserveEstablished to provide funds for the replacement and major maintenance of the Seniors CommunityBus. Funded from the revenue received from the hire of the Seniors Community Bus.

Governance & Workers Compensation ReserveEstablished for the purpose of future workers compensation insurance costs under the performancebased contribution scheme; or cyclical gross rental valuation cost for rating purposes; or unforeseenlegal costs.

Shark Lake Industrial Park - Environmental Monitoring and Landscape/Drainage Maintenance ReserveDirect contribution of $10,000 each by the Shire of Esperance, Esperance Port Authority andCBH and any subsequent Specified Area Rate applied to landowners within the Shark LakeIndustrial Park, to cover costs of undertaking water sampling and environmental monitoring as wellas maintaining landscape areas and drainage.

Staff Retention & Attraction ReserveEstablished to assist with the funding of future employment initiatives linked to the Enterprise BargainingAgreement or other staff related matters. Funded from savings within the wage and salary budget.

IT System & Process Development ReserveEstablished to finance the acquisition and enhancement of information technology across the Shire.Ongoing appropriations from the Municipal Fund are provided as and when needed.

Esperance Home Care Annual Leave ReserveEstablished to fund future commitments for annual leave entitlements as a result of employing staff.Funded from external grant funding.

Esperance Home Care Long Service Leave ReserveEstablished to fund future commitments for long service leave entitlements as a result of employingstaff. Funded from external grant funding.

Expected UsageThe Reserves have funds applied to projects and may be reimbursed from the Municipal Fund on an ongoing basis each year as determined by Council during the budget process. The current year'smovements in to or out of reserves are disclosed at Note 12 above. Any change in the purpose of reserve funds is made in accordance with the Local Government Act and Local Government Financial ManagementRegulations.



2011-12

13. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows:


$ $ $Cash and Cash Equivalents 32,946,714 11,167,479 13,974,222

(b) Reconciliation of Net Cash Provided ByOperating Activities to Net Result

Net Result 19,854,511 2,103,065 2,867,427

Depreciation 8,588,017 8,579,880 8,606,104 (Profit)/Loss on Sale of Asset (312,993) (801) (353,809) (Increase)/Decrease in Receivables (18,653) 242,579 259,076 (Increase)/Decrease in Inventories (8,599) (24,054) (986) Increase/(Decrease) in Payables 1,734,573 955,309 (650,625) Increase/(Decrease) in Employee Provisions 94,872 199,555 147,685 Grants/Contributions for the Development of Assets (19,398,853) (5,421,445) (3,789,965) Net Cash from Operating Activities 10,532,875 6,634,088 7,084,907

(c) Undrawn Borrowing FacilitiesCredit Standby ArrangementsBank Overdraft limit 200,000 200,000 200,000 Bank Overdraft at Balance Date - - - Credit Card Facility 40,000 40,000 40,000 Credit Card Balance at Balance Date (69) (2,000) (2,810) Total Amount of Credit Unused 239,931 238,000 237,190

The above overdraft is secured by way of floating debenture over the Shire's income.

(d) Loan FacilitiesLoan Facilities - Current 127,779 76,541 Loan Facilities - Non-Current 8,973,938 8,840,972 Total Facilities in Use at Balance Date 9,101,717 8,917,513 Un-used Loan Facilities at Balance Date 962,305 1,150,773



2011-12

14. CAPITAL AND LEASING COMMITMENTS

(a) Finance Lease Commitments


$ $(b) Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the accounts.

Payable:- not later than one year 32,779 71,284 - later than one year but not later than five years 25,704 39,808

58,483 111,092

(c) Capital Expenditure Commitments

The Shire has no capital expenditure commitments as at the current reporting date.

15. CONTINGENT LIABILITIES

The Shire of Esperance is unaware of any contingent liabilities at the current reporting date.

16. JOINT VENTURE

The Shire of Esperance together with the Shires of Coolgardie, Dundas, Laverton, Leonora, Menzies, Ngaanyatjarraku, Ravensthorpe, Wiluna and City of Kalgoorlie Boulder have a joint venture arrangement with regard to the provision of a Regional Records Service. The only asset is a building. Council'sone-tenth share of this asset is included in Land and Buildings as follows:


$ $Non-Current AssetsLand & Buildings 68,000 - Less; Accumulated Depreciation 75 -

67,925 -

The Shire of Esperance has no current finance leasing or hire purchase commitments.



2011-12


$ $

17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

General Purpose Funding 2,447,392 1,680,239 Governance 3,304,077 3,210,491 Law, Order, Public Safety 1,326,993 1,610,761 Health 60,323 24,489 Education and Welfare 4,011,321 3,912,522 Community Amenities 3,134,724 2,930,896 Recreation and Culture 24,247,540 23,607,463 Transport 208,844,661 205,789,067 Economic Services 13,871,593 448,685 Other Property and Services 11,990,382 11,412,066 Unallocated 6,197,407 2,941,574

279,436,413 257,568,253

2012 2011 2010Actual Actual Actual

18. FINANCIAL RATIOS

Current Ratio 1.656 1.691 0.451Untied Cash to Trade Creditors Ratio 2.784 0.442 0.603Debt Ratio 0.048 0.045 0.045Debt Service Ratio 0.011 0.011 0.038Gross Debt to Revenue Ratio 0.310 0.326 0.292Gross Debt to Economically Realisable Assets Ratio 0.109 0.142 0.138Rate Coverage Ratio 0.252 0.368 0.318Outstanding Rates Ratio 0.011 0.015 0.016

The above rates are calculated as follows:Current Ratio Current assets minus restricted assets

Current liabilities minus liabilities associatedwith restricted assets

Untied Cash to Trade Creditors Ratio Untied cashUnpaid trade creditors

Debt Ratio Total liabilitiesTotal assets

Debt Service Ratio Debt Service Cost Available operating revenue

Gross Debt to Revenue Ratio Gross debtTotal revenue

Gross Debt to Gross debt Economically Realisable Assets Ratio Economically realisable assets

Rate Coverage Ratio Net rate revenueOperating revenue

Outstanding Rates Ratio Rates outstandingRates collectable



2011-12

19. TRUST FUNDS

Funds held at balance date over which the Council has no control and which are not included inthe financial statements are as follows:

Balance Amounts Amounts Balance1-Jul-11 Received Paid 30-Jun-12

Details $ $ $ $Town Planning Development Bonds 102,509 4,017 (13,570) 92,956Caravan Park Lease Bonds 47,663 1,989 - 49,652TransWA Bus Transport 19,693 15,716 (19,693) 15,716Dept of Transport Licensing Agency 84,853 97,168 (84,853) 97,168Air BP Fuel Agency 6,207 167 (235) 6,139Builders Reinstatement Bonds 25,200 500 (4,400) 21,300BCITF Levy 1,207 1,545 (1,207) 1,545Staff Housing Bonds 9,617 6,920 (5,190) 11,347Subdivision Bonds 1,984 83 - 2,067Homecare Bus Bonds 1,000 1,000 (200) 1,800Civic Centre Bonds - 2,240 (2,240) - Senior Citizens Centre Bonds - 1,122 (1,122) - Builders Reg. Board Levy - - - - Engineering Sub-division Bonds 150,211 7,711 (31,819) 126,103Other 8,848 17,454 (23,833) 2,469Commercial Building Bonds 1,453 - - 1,453Contributions to Public Open Space 176,843 7,381 - 184,224General Deposits 44,239 42,326 (44,238) 42,327

681,527 207,339 (232,600) 656,266

20. DISPOSALS OF ASSETS - 2011/12 FINANCIAL YEAR

The following assets were disposed of during the year.

Net Book Value Sale Price Profit (Loss)Actual Budget Actual Budget Actual Budget

$ $ $ $ $ $Law Order & Public SafetyLV499 Mitsubishi Triton Dual Cab 18,929 22,646 14,546 20,000 (4,384) (2,646) LV518 Mitsubishi Triton Dual Cab 17,540 19,766 17,000 20,000 (540) 234 Education & WelfareIVH2 Toyota Hi-Ace Mini Bus - - 909 - 909 - Community AmenitiesFL2 Caterpillar Forklift 4,849 7,516 15,000 12,000 10,151 4,484 TransportLV496 Mitsubishi Triton Dual Cab 18,740 18,163 14,545 19,000 (4,195) 837 LV545 Holden Colorado Dual Cab 18,347 25,270 24,000 25,000 5,654 (270) LV508 Toyota Hiace Bus 25,374 26,458 24,996 26,000 (377) (458) G36 Caterpillar Motor Grader 84,834 102,004 140,000 120,000 55,166 17,996 T94 Mitsubishi FS52 Tip Truck 48,567 63,483 104,545 85,000 55,979 21,517 T86 Isuzu NPR 300 tip Truck - 2,598 24,546 22,000 24,545 19,402 T87 Isuzu NPR 300 tip Truck - 2,598 25,455 22,000 25,455 19,402 MR6 Collins 12T Roller - - 750 - 750 - D10 Bulldozer - 218,690 - 150,000 - (68,690) TR59, TR60 Traffic Lights - 8,466 - 2,000 - (6,466) Sundry Equipment - - - 2,000 - - Economic ServicesLV501 Mitsubishi Triton Ute 13,692 13,839 7,000 10,000 (6,691) (3,839) Other Property & ServicesFlinders Subdivision 283,071 - 432,165 104,262 149,092 - LV514 Toyota Hilux Dual Cab 21,430 24,202 22,909 23,500 1,479 (702)

555,373 513,287 868,366 662,762 312,993 801



2011-12

21. INFORMATION ON BORROWINGS

(a) Repayments - Debentures Borrowing Interest Maturity Principal New Interest Repayments Principal Principal

Institution Rate Date 1-Jul-11 Loans Repayments 30-Jun-12Particulars % Actual Budget Actual Budget Actual BudgetRecreation & CultureLoan 261 - Pink Lake Country Club * WATC 6.65 07/22 198,029 - 12,687 12,867 12,273 12,273 185,756 185,756 Loan 265 - Esp. Indoor Sport * WATC 6.59 04/12 11,576 - 429 605 11,576 11,576 - - Loan 285 - Esp. Speedway * WATC 6.36 02/17 16,488 - 971 1,026 2,337 2,337 14,151 14,151 Loan 286 - Esp. Bowling Club * WATC 6.51 06/17 179,651 - 11,440 11,446 12,476 25,359 167,175 154,292 Loan 287 - Esp Seafarers Centre * WATC 7.01 8/13 37,328 - 2,459 2,520 5,242 5,242 32,086 32,086 Loan 290 - Cascade Town Rec Assoc * WATC 5.65 12/14 21,866 - 1,115 1,130 5,816 5,816 16,050 16,050 Loan 291 - Recherche Aged Welfare * WATC 6.36 12/30 345,570 - 21,944 21,973 9,290 9,290 336,280 336,280 Loan 292 - Esp Squash Club * WATC 6.05 12/20 57,778 - 3,413 3,425 4,649 4,649 53,128 53,129 Loan 294 - Scaddan Country Club * WATC 3.25 06/13 - 59,395 33 2,769 - 2,069 59,395 62,261 Other Property & ServicesLoan 288 - SLIP/Flinders WATC 3.60 06/13 8,049,227 388,468 508 - 200,000 - 8,237,696 8,049,226

8,917,513 447,863 54,999 57,761 263,659 78,611 9,101,717 8,903,231 Funding of Borrowings* Self Supporting Loan financed by payments from third parties.All other loan repayment were financed by general purpose revenue.



2011-12

21. INFORMATION ON BORROWINGS (CONTINUED)

(b) New Borrowings - 2011/12

Amount Borrowed Institution Loan Term Total Interest Amount Used Balance Type (Years) Interest & Rate Unspent

Particulars/Purpose Actual Budget Charges Actual Budget $Loan 294 - Scaddan Country Club 59,395 64,330 WATC Debenture 1 1,990 3.25 59,395 64,330 -

Loan 288 - SLIP/Flinders 388,468 - WATCShort Term

Lending Facility

Revolving 75,990 3.60 388,469 - -

447,863 64,330 77,980 447,864 64,330 -

(c) Unspent Loans

The Shire does not have any unspent loans as at 30 June 2012.

(d) Overdraft

Council established an overdraft facility of $200,000 on 12 July 2000 to assist with short term liquidityrequirements. The balance of the bank overdraft at 1 July 2011 and 30 June 2012 was $nil.

$ $



2011-12

22. RATING INFORMATION - 2011/12 FINANCIAL YEAR

(a) Rates

Rate in Number Rateable Rate Interim Back Total Budget Budget Budget Budgetdollar of Value Revenue Rates Rates Revenue Rate Interim Back Total

RATE TYPE Properties Actual Revenue Rate Rate RevenueGeneral RateGRV - Residential 0.076081 3,498 45,892,984 3,491,585 47,161 604 3,539,350 3,520,347 10,000 - 3,530,347 GRV - Commercial 0.076081 371 19,194,673 1,460,350 (3,250) - 1,457,100 1,448,250 10,000 - 1,458,250 GRV - Vacant 0.076081 210 3,601,780 274,027 (6,875) 838 267,990 288,916 - - 288,916 UV - Rural 0.006143 1,130 845,749,000 5,195,436 (4,307) (5) 5,191,124 5,193,381 - - 5,193,381 UV - Commercial/Industrial 0.006143 2 275,000 1,689 (768) - 921 1,689 - - 1,689 Sub-Totals 5,211 914,713,437 10,423,087 31,961 1,437 10,456,485 10,452,584 20,000 - 10,472,584

MinimumMinimum Rates $GRV - Residential 700.00 1,275 9,722,574 892,501 (1,639) (53) 890,809 872,200 - - 872,200 GRV - Commercial 700.00 80 476,355 56,000 (1,752) (751) 53,497 56,000 - - 56,000 GRV - Vacant 700.00 675 3,679,139 472,500 (17,404) (1,126) 453,970 490,700 - - 490,700 GRV - Lesser Service 350.00 71 13,496 24,850 - - 24,850 25,200 - - 25,200 UV - Lesser Service 350.00 1 11,000 350 - - 350 - - - - UV - Rural 700.00 52 3,295,900 36,400 - - 36,400 37,800 - - 37,800 UV - Mining 700.00 159 2,348,325 111,300 (4,841) (391) 106,068 120,400 - - 120,400 UV - Commercial/Industrial 700.00 1 78,000 700 - - 700 700 - - 700 Sub-Totals 2,314 19,624,789 1,594,601 (25,636) (2,321) 1,566,644 1,603,000 - - 1,603,000

12,023,129 12,075,584

Prepaid Rates 4,064 - Ex Gratia Rates 160,503 161,277 Totals 12,187,696 12,236,861



2011-12

22. RATING INFORMATION - 2011/12 FINANCIAL YEAR (CONTINUED)

(b) Information on Surplus/(Deficit) Brought Forward2012 2011

(1 July 2011 B/F) (30 June 2011 C/F)$ $

Surplus/(Deficit) 1 July 2011 Brought Forward 939,573 939,573

Comprises:

Cash - Unrestricted 299,633 299,633Cash - Restricted 13,674,589 13,674,589Rates - Current 179,232 179,232Sundry Debtors 1,785,315 1,785,315Interest Receivable 4,024 4,024GST Receivable 20,440 20,440Inventories 206,466 206,466

Less:Reserves - Restricted Cash

Land Purchase & Development Reserve 777,983 777,983Council Buildings Construction Reserve 16,125 16,125Eastern Suburbs Water Pipeline Reserve 136,683 136,683Jetty Reserve 1,552,851 1,552,851Aerodrome Reserve 1,842,733 1,842,733Salmon Gums Quarry Reserve 8,718 8,718Municipal Museum Reserve 2,597 2,597Meat Inspection Reserve - - Off Street Parking Reserve 122,417 122,417Sanitation (Rubbish Removal) Services Reserve 1,368,867 1,368,867Esperance Home Care Fundraising Reserve 62,762 62,762HACC Asset Replacement Reserve 126,963 126,963Gravel Resources Compensation Reserve 47,135 47,135Southern Suburbs Water Supply Reserve 38,756 38,756Cemetery Reserve 27,778 27,778Unspent Grants & Contributions Reserve 2,129,275 2,129,275Historical Village Reserve 1,756 1,756Plant Replacement Reserve 626,023 626,023Employee Entitlements- Annual Leave Reserve - - Employee Entitlements- Long Service Leave Reserve 712,515 712,515History Book Reserve 15,803 15,803Tanker Jetty Donations Reserve 30,521 30,521Library Reserve 28,805 28,805Drainage Reserve 210,529 210,529Building Maintenance Reserve 2,348,036 2,348,036Community Bus Maintenance & Replacement Reserve 65,965 65,965Governance & Workers Compensation Reserve 249,873 249,873

54,397 54,397Staff Retention & Attraction Reserve 584,850 584,850IT System & Process Development Reserve 246,520 246,520EHC Employee Entitlements A/Leave Reserve 118,722 118,722EHC Employee Entitlements LS/Leave Reserve 118,631 118,631

13,674,589 13,674,589

Subtotal 2,495,110 2,495,110

Shark Lake Industrial Park - Environmental Monitoring and Landscape/Drainage Maintenance



2011-12

22. RATING INFORMATION - 2011/12 FINANCIAL YEAR (CONTINUED)

(b) Information on Surplus/(Deficit) Brought Forward (Continued)2012 2011

(1 July 2011 B/F) (30 June 2011 C/F)$ $

Balance Brought Forward (from previous page) 2,495,110 2,495,110

Less:Sundry Creditors (677,500) (677,500) Accrued Interest on Debentures (6,403) (6,403) Accrued Salaries and Wages (219,724) (219,724) Provisions of Annual Leave (770,632) (770,632) Non-cash backed Staff Leave Liability 118,722 118,722

Surplus/(Deficit) 939,573 939,573

Difference:There was no difference between the Surplus/(Deficit) 1 July 2011 Brought Forward position used in the 2012 audited financial report and the Surplus/(Deficit) Carried Forward position as disclosed in the 2011 audited financial report.



2011-12

23. DISCOUNTS, INCENTIVES, CONCESSIONS & WRITE-OFFS(2011/12 FINANCIAL YEAR)

Total BudgetCost/ Cost/

(a) Write-Offs Value ValueGeneral Debtors 220 - Rate Assessments 3,645 1,000

3,865 1,000

(b) WaiversA waiver of rates in relation to commercial leases entered into with tenants of the Museum Village Parkhas been granted. This waiver is granted as part of a tenancy lease negotiated with each tenant.

(c) ConcessionsThe Council offers those residents who hold a current valid seniors concession card, a concession in respect of the following services:(I) Rubbish Collection Services, 50% of the normal fee applicable.(II) Dog registration fees, 50% of the normal fee applicable.(III) Various concessions on user charges at the Bay of Isles Leisure Centre (see below)

A concession of $40.00 is offered to Schools using the Shire Civic Centre for conventions, meetings andprize nights etc. on those fees normally charged.

Concessions of various fees are offered to holders of student cards, health care cards and pensioner cards. These concessions are available on pool/spa/sauna entry, health and fitness memberships to the gymnasium, aquatic area or whole complex, health and fitness classes and sport hall hire. Theseconcessions are available only upon presentation of a relevant card and are offered to make the Bay of Isles Leisure Centre financially accessible to everyone in the community.

(d) IncentivesA prize is offered to ratepayers whose payment of the full amount owing, including arrears, isreceived on or before 31st August 2011 or 35 days after the date of service appearing on the ratenotice, whichever is the later. The total value of the rate incentive scheme is $25,000.

24. INTEREST CHARGES AND INSTALMENTS (2011/12 FINANCIAL YEAR)

Interest Admin. Revenue BudgetedRate (%) Charge Revenue

$ $ $Interest on Unpaid Rates (note 2a) 11.00% - 36,006 29,000 Interest on Instalments Plan (note 2a) 5.50% - 55,627 45,000

91,633 74,000

Ratepayers had the option of paying rates in four equal instalments, due on 21st September 2011,23rd November 2011, 25th January 2012 and 28th March 2012. Interest was applied on the finalthree instalments.



2011-12


25. FEES & CHARGES $ $ $

Governance 10,410 13,250 11,050 General Purpose Funding 24 1,300 591 Law, Order, Public Safety 38,362 39,720 37,041 Health 136,769 154,853 161,395 Education & Welfare 234,582 220,800 209,054 Community Amenities 2,560,991 2,267,350 2,527,254 Recreation & Culture 1,227,878 1,174,834 1,134,536 Transport 1,261,264 1,053,450 1,089,186 Economic Services 509,906 331,833 506,499 Other Property & Services 415,187 430,500 851,726

6,395,373 5,687,890 6,528,332


26. GRANT REVENUE $ $

Grants, subsidies and contributions are included as operatingrevenues in the Statement of Comprehensive Income:

(a) By Nature/Type:Operating Grants, Subsidies & Contributions 9,230,839 8,032,526 Non-Operating Grants, Subsidies & Contributions 19,398,853 3,789,965

28,629,692 11,822,491 (b) By Reporting Program:

General Purpose Funding 5,269,309 4,003,339 Governance 211,237 205,938 Law, Order, Public Safety 339,720 759,939 Health 21,637 - Education & Welfare 2,141,612 2,108,340 Community Amenities 95,653 39,354 Recreation and Culture 2,047,100 857,955 Transport 4,107,572 3,415,119 Economic Services 14,123,087 204,656 Other Property & Services 272,765 227,851

28,629,692 11,822,491

27. EMPLOYEE NUMBERS 2012 2011 2010Actual Actual Actual

The number of full-time equivalentemployees at balance date. 192 178 177


$ $ $28. ELECTED MEMBERS REMUNERATION

The following fees, expenses and allowances werepaid to council members and/or the president.

Meeting Fees 71,000 78,000 79,450 President’s Allowance 15,000 15,000 14,600 Deputy President's Allowance 3,750 3,750 3,650 Travelling Expenses 11,197 10,000 4,345 Telecommunications Allowance 14,250 14,250 16,500 IT (Information Technology) Allowance 4,614 4,750 5,500

119,811 125,750 124,045



2011-12

29. MAJOR LAND TRANSACTIONS

(a) Flinders Residential Subdivision

(i) DetailsThe Council owns land, freehold at East Location 18, Lot 3 which is bounded by Ormonde Street andGoldfields Road. During 2003/04 the Council created 33 blocks from part of Lot 3. These blockswere sold at auction and the profit transferred into a Cash Reserve established for Land Development.The Council developed a further 90 Lots as Stage 2 during 2009/10. 21 Lots have been sold with the remainder to be progressively sold subject to market demand. The Council has developed a Business Plan in relation to this development a copy of which is available on request from the Council Administration Office.


$ $(ii) Current Year Transactions

Operating IncomeLoan Interest Written Back - 5,233Profit on Sale of Land 149,092 386,280

149,092 391,513Operating ExpenseOther Expenses - (4,424) Advertising & Promotion - (19,795) Administration Allocation (508) -

(508) (24,219) Capital IncomeLoan Proceeds 350,384 348,454Land Sale Proceeds 432,163 845,292

782,547 1,193,746Capital ExpenseMarketing & Legal Expenses - - Interest Capitalised (350,384) (348,454) Project Management & Design - - Development Costs (80,971) (736,570) Loan Principal Repayments (200,000) (131,706)

(631,355) (1,216,730)

Total 299,776 344,310

2013 2014 2015 2016Budget Budget Budget Budget

(iii) Expected Future Cashflows $ $ $ $Inflows/(Outflows)Cash InflowsLand Sales 320,000 4,200,000 3,360,000 3,840,000

320,000 4,200,000 3,360,000 3,840,000 Cash OutflowsPrinting & Stationery (3,000) (3,000) (3,000) (3,000) Interest Expense (430,000) (455,000) (331,000) (171,646) Development Expenses - - - - Marketing & Selling Costs (19,200) (252,000) (201,600) (230,400) GST (32,000) (420,000) (336,000) (384,000) Repayment of Borrowings - (2,520,000) (3,000,000) (3,032,408)

(484,200) (3,650,000) (3,871,600) (3,821,454) Net Cash Flows (164,200) 550,000 (511,600) 18,546

The net cash flows to 30 June 2012 in relation to this sub division is an outflow (or cost) of ($6,901,747).The net cash flows of the entire land transaction is expected to result in a net outflow of $107,254.



2011-12

29. MAJOR LAND TRANSACTIONS (Continued)

(b) Shark Lake Industrial Park - Shire Subdivision.

(i) Details

During the 2010-11 financial year the Council continued to undertake a major land transactionas defined under the Local Government Act, 1995.

With the Superlot Stage of the Shark Lake Industrial Park subdivision complete, Council has further subdivided the acquired superlot into approximately 90 general industrial lots of varying sizes.

Stage 1 consisting of 28 lots has been completely developed at a total capital cost of $1,037,953excluding the costs associated with acquiring the superlot.

Stage 1 lots were auctioned in May 2010 with no sales resulting.

All stage 1 lots remain listed for sale with local real estate agents with Council taking a longer term view withthis strategic industrial development site.


$ $(ii) Current Year Transactions

Operating Income- - - -

Operating ExpenseAdvertising & Promotions (3,525) Administration Allocation - -

- (3,525)

Operating Result - (3,525)

Capital IncomeLoan Proceeds 38,084 51,424

38,084 51,424Capital ExpenseElectricity Connection - - Interest (38,084) (51,424) Other Expenses - - Survey - -

(38,084) (51,424)

Non-Operating Result - -

Total Net Result - (3,525)



2011-12

29. MAJOR LAND TRANSACTIONS (Continued)

(b) Shark Lake Industrial Park - Shire Subdivision (Continued).

(iii) Expected Future CashflowsInflows/(Outflows)

Operating Cash InflowsProfit on Disposal - Transfer from Land Development Reserve -

Operating Cash OutflowsAdvertising & Promotion - Interest on Borrowings - Legal Expenses - Administration Allocation - Net Operating Cash Inflows/(Outflows) -

Capital Cash InflowsLoan Borrowings - Land Sales -

Capital Cash OutflowsLand Development Costs - Loan Repayments - Transfer to Reserves - Net Capital Cash Inflows/(Outflows) -

Net Operating/Capital Cash Flows -



2011-12

30. MAJOR TRADING UNDERTAKINGS

Esperance Aerodrome Council's objective is to maintain a safe landing airstrip and functional airport amenities conducive to

the promotion of the district as a tourist and business destination.Operating costs are met by landing fees charged. Annual surpluses are transferred to reserve fundsto finance future improvements to the facility.


$ $ $(a) Operating Statement

Operating Revenues Passenger Landing Fees 955,847 760,000 801,336 Commissions Fuel Agency 38,712 35,000 21,843 Rentals 16,641 13,000 16,411 Grants & Subsidies - - 45,000 Other Sundry Income 4,374 5,450 3,481 Gain on Disposal of Asset - - - Reimbursement Operating Expenses 2,037 1,000 1,385

1,017,611 814,450 889,456 Less Operating Expenses Employee Expenses (229,620) (205,972) (188,908) Insurance (8,580) (8,590) (7,810) Building Expenses (36,623) (26,316) (36,735) Grounds & Strip Maintenance (38,157) (65,929) (70,636) Fuel Agency Expense - (4,960) (2,852) Marketing - (2,000) (57) Security Screening (13,148) (100,000) - Airport Identification Expenses (2,758) (6,000) (1,741) Administration Overheads (52,891) (56,600) (32,739) Depreciation (172,936) (160,600) (162,835) Other (39,307) (48,220) (135,468)

(594,020) (685,187) (639,781)

Operating Result 423,591 129,263 249,675


$ $ $(b) Non-Operating Income & Expenditure

Capital Revenue Grants & Subsidies 767,625 1,781,000 51,670 Transfer From Reserve Fund 401,058 1,377,063 -

1,168,683 3,158,063 51,670 Less Capital Expenditure Infrastructure (1,146,497) (2,508,063) (105,883) Plant & Equipment (218,214) (650,000) (25,794)

(1,364,711) (3,158,063) (131,677)

Non-Operating Result (196,028) - (80,007)

TOTAL NET TRADING UNDERTAKING 227,563 129,263 169,668



2011-12

30. MAJOR TRADING UNDERTAKINGS (continued)

Esperance Aerodrome (Continued)2012 2011

Actual Actual$ $

(c) Financial Position

CURRENT ASSETSCash Assets 1,456,123 1,844,252 Receivables 319,668 230,452 TOTAL CURRENT ASSETS 1,775,791 2,074,704

NON-CURRENT ASSETSProperty Plant and Equipment 1,978,916 1,076,923 Infrastructure 4,058,927 3,769,145 TOTAL NON CURRENT ASSETS 6,037,843 4,846,068

TOTAL ASSETS 7,813,634 6,920,772

CURRENT LIABILITIESPayables (Creditors and Wages Payable) 11,795 6,959 Provisions (Employee Entitlements) 36,737 38,716 TOTAL CURRENT LIABILITIES 48,532 45,675

NON CURRENT LIABILITIESProvisions (Employee Entitlements) 342 - TOTAL NON CURRENT LIABILITIES 342 -

NET ASSETS 7,764,760 6,875,097

EQUITYAccumulated Surplus 5,978,189 4,700,312 Revaluation Reserve - Non Cash 332,051 332,051 Reserves - Cash Backed 1,454,520 1,842,734 TOTAL EQUITY 7,764,760 6,875,097



2011-12

31. FINANCIAL RISK MANAGEMENT

Carrying Value Fair Value2012 2011 2012 2011

$ $ $ $Financial AssetsCash and cash equivalents 32,946,714 13,974,222 32,946,714 13,974,222Receivables 1,061,848 2,991,460 1,061,848 2,991,460

34,008,562 16,965,682 34,008,562 16,965,682Financial LiabilitiesPayables 2,638,200 903,627 2,638,200 903,627Borrowings 9,101,717 8,917,513 8,618,053 8,178,768

11,739,917 9,821,140 11,256,253 9,082,395

(a) Cash and Cash Equivalents



2011-12

Council’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and interest rate risk. The Council’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council. Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk. Financial risk management is carried out by the finance area under policies approved by the Council. The Council held the following financial instruments at balance date:

Fair value is determined as follows: • Cash and Cash Equivalents, Receivables, Payables – estimated to 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.

Council's objective is to maximise its return on cash whilst maintaining an adequate level of liquidity and preserving capital. The finance area manages the cash portfolio with the assistance of independent advisers (where applicable). Council has an investment policy and the policy is subject to review by Council. 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 is credit risk - the risk that a contracting entity will not complete its obligations under a financial instrument resulting in a financial loss to Council. Council manages these risks by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees. Council also seeks advise from independent advisers (where applicable) before placing any cash and investments.

31. FINANCIAL RISK MANAGEMENT (Continued)

(a) Cash and Cash Equivalents (Continued)

30-Jun-12 30-Jun-11Impact of a 1% (¹) movement in interest rates on cash $ $and cash equivalents: - Equity 207,849 158,466 - Income Statement 207,849 158,466

(b) Receivables

30-Jun-12 30-Jun-11Percentage of Rates and Annual Charges $ $

- Current 0.00% 0.00% - Overdue 100.00% 100.00%

Percentage of Other Receivables

- Current 74.57% 89.17% - Overdue 25.43% 13.83%

Notes: (¹) Sensitivity percentages based on management’s expectation of future possible market movements. Recent market volatility has seen large market movements for certain types of investments.

Council’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. Council 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 Council to recover these debts as a secured charge over the land – that is, the land can be sold to recover the debt. Council 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 Council monthly and benchmarks are set and monitored for acceptable collection performance. Council 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 Council’s credit risk at balance date was:



2011-12


(c) Payables/Borrowings

Due Due Due Total Caryingwithin between after contractual values1 year 1 & 5 years 5 years cash flows

$ $ $ $ $2012

Payables 2,638,200 - - 2,638,200 2,638,200Borrowings 484,699 10,185,213 582,298 11,252,210 9,101,717

3,122,899 10,185,213 582,298 13,890,410 11,739,917

2011

Payables 907,627 - - 907,627 903,622Borrowings 559,216 8,626,798 686,942 9,872,956 8,917,513

1,466,843 8,626,798 686,942 10,780,583 9,821,135



2011-12

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. Council 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 Council’s Payables and Borrowings are set out in the Liquidity Sensitivity Table below:


(c) Payables/Borrowings (Continued)

The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk: WeightedAverageEffective

<1 year >1<2 years >2<3 years >3<4 years >4<5 years >5 years Total Interest Rate$ $ $ $ $ $ $ %

Year Ended 30 June 2012

Borrowings

Fixed RateDebentures 59,395 8,269,781 16,050 - 181,327 575,164 9,101,717 Weighted Average 3.94% Effective Interest Rate 3.35% 3.71% 5.65% 0.00% 6.50% 6.43%

Year Ended 30 June 2011

Borrowings

Fixed RateDebentures 11,576 8,049,227 37,328 21,866 - 797,516 8,917,513 5.29%Weighted Average Effective Interest Rate 6.59% 5.17% 7.01% 5.65% 0.00% 6.44%

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect funding costs. Council manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation.



2011-12

Shire of EsperanceWindich StreetPo Box 507Esperance WA 6450P: 08 9071 0666F: 08 9071 0600E: [email protected]: www.esperance.wa.gov.au

Shire of Esperance Annual Report 2011/2012Published November 2012Photo credit: Dan Paris, Lynda Horn

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