city of bunbury council notice of agenda briefing and minutes/archives 2018... · 13 november 2018...

CITY OF BUNBURY 4 Stephen Street

Bunbury WA 6230 Western Australia

Correspondence to: Post Office Box 21

Bunbury WA 6231

Telephone: (08) 9792 7234 ◌ Facsimile: (08) 9792 7184 ◌ TTY: (08) 9792 7370 ◌ www.bunbury.wa.gov.au

City of Bunbury Council Notice of Agenda Briefing

The next Agenda Briefing of the City of Bunbury Council will be held in the Council Chambers, City of Bunbury Administration Building, 4 Stephen Street, Bunbury on Tuesday, 6 November 2018 at 5.30pm. Members of the public are advised that no public question time is included in the Agenda Briefing. ORDER OF BUSINESS 1. Attendance and apologies 2. Announcements by the Chair/Presiding Member 3. Disclosures of Interest 4. Review of items listed under sections 10 - 15 of the Draft Agenda for the Ordinary Council Meeting

of 13 November 2018 (attached) 4.1 Questions from Elected Members

5. Closure of Agenda Briefing

http://mydocs/sites/cp/Templates/Council%20Agendas%20and%20Minutes%20Templates/www.bunbury.wa.gov.au

CITY OF BUNBURY 4 Stephen Street



Bunbury WA 6231


City of Bunbury Council Notice of Meeting and Agenda 13 November 2018

http://mydocs/sites/cp/Templates/Council%20Agendas%20and%20Minutes%20Templates/www.bunbury.wa.gov.au

Table of Contents

Item No Subject Page

1. Declaration of Opening / Announcements of Visitors............................................................................ 6

2. Disclaimer ............................................................................................................................................... 7

3. Announcements from the Presiding Member ........................................................................................ 7

4. Attendance ............................................................................................................................................. 8

4.1 Apologies ............................................................................................................................... 8 4.2 Approved Leave of Absence .................................................................................................. 8

5. Declaration of Interest ............................................................................................................................ 9

6. Public Question Time .............................................................................................................................. 9

6.1 Public Question Time ............................................................................................................. 9 6.2 Responses to Public Questions Taken ‘On Notice’ ................................................................ 9

7. Confirmation of Previous Minutes and other Meetings under Clause 19.1 ......................................... 10

7.1 Minutes ................................................................................................................................ 10 7.1.1 Minutes – Ordinary Council Meeting ................................................................... 10 7.1.2 Minutes – Council Advisory Committees and Working/Project Groups ............. 10

8. Petitions, Presentations, Deputations and Delegations ....................................................................... 11

8.1 Petitions ............................................................................................................................... 11 8.2 Presentations ....................................................................................................................... 11 8.3 Deputations ......................................................................................................................... 11 8.4 Council Delegates’ Reports .................................................................................................. 11 8.5 Conference Delegates’ Reports ........................................................................................... 11

9. Method of Dealing with Agenda Business ............................................................................................ 11

10. Reports .................................................................................................................................................. 12

10.1 Recommendations from Advisory Committees ................................................................... 12 10.1.1 Draft Auditors Report and Annual Financial Statements for the year ending

30 June 2018 ........................................................................................................ 12 10.2 Chief Executive Officer Reports ........................................................................................... 17

10.1.2 2019 Council Meeting Schedule .......................................................................... 17 10.2.2 2017/18 Annual Electors Meeting ....................................................................... 19 10.2.3 Council Major Projects – Prioritisation of Key Projects ....................................... 21 10.2.4 City of Bunbury Membership to the Bunbury Geographe Economic Alliance .... 26

10.3 Director Corporate and Community Services Reports ........................................................ 29 10.3.1 Tenders for the Supply and Installation of Fibre Optic Cable to Withers

Library and Bunbury Wildlife Park ....................................................................... 29 10.4 Director Planning and Development Services Reports ........................................................ 32 10.5 Director Works and Services Reports .................................................................................. 33

10.5.1 Road Name Request for Lot 224 & 246 Spencer Street South Bunbury Subdivision ........................................................................................................... 33

11. Applications for Leave of Absence ........................................................................................................ 35

Table of Contents

Item No Subject Page

12. Motions on Notice ................................................................................................................................ 36

12.1 Cr Kelly Motion on Notice .................................................................................................... 36

13. Questions on Notice ............................................................................................................................. 42

13.1 Response to Previous Questions from Members taken on Notice...................................... 42 13.2 Questions from Members .................................................................................................... 42

14. New Business of an Urgent Nature Introduced by Decision of the Meeting ....................................... 42

15. Meeting Closed to Public ...................................................................................................................... 43

15.1 Matters for which the Meeting may be Closed ................................................................... 43 15.1.1 Confidential Report – Waste Collection Marketing and Financial Analysis ......... 43 15.1.2 Confidential Report – Land Acquisition Discovery Holiday Parks ........................ 44

15.2 Public Reading of Resolutions that may be made Public ..................................................... 44

16. Closure .................................................................................................................................................. 44

13 November 2018 Agenda – Council Meeting

Vision

Bunbury: welcoming and full of opportunities.

Core Values The City of Bunbury aspires to act in accordance with the following values in all of its decisions and actions: Leadership: empowering people to take responsibility for what they do and to strive to set an example for others to follow. Teamwork: communicating and working co-operatively for the mutual benefit of all. Integrity: establishing trust through openness and honesty. Accountability: for our actions and performance. Respect: for others by listening, understanding and responding appropriately. Innovation: continually improving our services and processes through creative and progressive thinking and action.

Nature of Council’s Role in Decision Making Advocacy: When Council advocates on its own behalf or on behalf of its community to

another level of government/body/agency. Executive/Strategic: The substantial direction setting and oversight role of the Council, e.g. adopting

plans and reports, accepting tenders, directing operations, setting and amending budgets.

Legislative: Includes adopting local laws, town planning schemes and policies. Review: When Council reviews decisions made by Officers. Quasi-Judicial: When Council determines an application/matter that directly affects a person’s

rights and interests. The Judicial character arises from the obligations to abide by the principles of natural justice.

Examples of Quasi-Judicial authority include town planning applications, building licences, applications for other permits/licences (e.g. under Health Act, Dog Act or Local Laws) and other decisions that may be appealable to the State Administrative Tribunal.


City of Bunbury Council Notice of Meeting

The next Ordinary Meeting of the City of Bunbury Council will be held in the Council Chambers, City of Bunbury Administration Building, 4 Stephen Street, Bunbury on Tuesday, 13 November 2018 at 5.30pm.

MJ (Mal) Osborne Chief Executive Officer (Date of Issue: 9 November 2018)

Agenda 13 November 2018

Note: The recommendations contained in this document are not final and are subject to adoption, amendment (or otherwise) at the meeting.

Council Members: Mayor Gary Brennan Councillor Jaysen Miguel Councillor Todd Brown Councillor Murray Cook Councillor James Hayward Councillor Brendan Kelly Councillor Betty McCleary Councillor Sam Morris Councillor Tresslyn Smith Councillor Michelle Steck Councillor Karen Steele Councillor Monique Warnock

1. Declaration of Opening / Announcements of Visitors


2. Disclaimer The City of Bunbury accepts no responsibility for any act, omission, statement or intimation that occurs during Council Briefings or Council Meetings. The City refuses liability for any loss caused arising out of reliance by any person or legal entity on any such act, omission, statement or intimation occurring during Council Briefings or Council Meetings. Any person or legal entity acting or failing to act in reliance upon any statement, act or omission made during a Council Briefing or Council Meeting does so at their own risk. Please note the recommendations contained in this document are not final and are subject to adoption, amendment (or otherwise) at the meeting. Any statement or intimation of approval regarding any planning or development application made during a Council Briefing or Council Meeting is not to be taken as notice of approval from the City. The City advises that anyone who has an application lodged with the City must obtain and should only rely on WRITTEN CONFIRMATION of the outcome of the application, and any conditions attached to the decision made by Council regarding the application. Copyright Any plans or documents contained within this Agenda and any associated Appendices are Copyright of the City of Bunbury. The content is protected by Australian and International copyright trademark. Content must not be modified or reproduced without written authorisation of the City of Bunbury. Recording and Webstreaming of Meetings

All Ordinary and Special Council Meetings are electronically recorded except when Council resolves to go behind closed doors

All recordings are retained as part of the City’s records in accordance with the General Disposal Authority for Local Government Records produced by the Public Records Office

The live stream can be accessed at http://www.bunbury.wa.gov.au/Pages/Live-Stream.aspx

Recordings can be accessed at http://www.bunbury.wa.gov.au/Pages/Council-Meeting-Videos-2018.aspx

Images of the public gallery are not included in the streaming, however the voices of people in attendance may be captured and streamed.

If you have any issues or concerns regarding the live streaming and recording of meetings, please contact the City’s Governance Officer on 9792 7273.

3. Announcements from the Presiding Member

http://www.bunbury.wa.gov.au/Pages/Live-Stream.aspx

http://www.bunbury.wa.gov.au/Pages/Live-Stream.aspx

http://www.bunbury.wa.gov.au/Pages/Council-Meeting-Videos-2018.aspx

http://www.bunbury.wa.gov.au/Pages/Council-Meeting-Videos-2018.aspx


4. Attendance

4.1 Apologies

4.2 Approved Leave of Absence


5. Declaration of Interest

Members should fill in Disclosure of Interest forms for items in which they have a financial, proximity or impartiality interest and forward these to the Presiding Member before the meeting commences. Section 5.60A: “a person has a financial interest in a matter if it is reasonable to expect that the matter will, if dealt with by the local government, or an employee or committee of the local government or member of the council of the local government, in a particular way, result in a financial gain, loss, benefit or detriment for the person.” Section 5.60B: “a person has a proximity interest in a matter if the matter concerns – (a) a proposed change to a planning scheme affecting land that adjoins the person’s

land; or (b) a proposed change to the zoning or use of land that adjoins the person’s land; or (c) a proposed development (as defined in section 5.63(5)) of land that adjoins the

person’s land.” Regulation 34C (Impartiality): “interest means an interest that could, or could reasonably be perceived to, adversely affect the impartiality of the person having the interest and includes an interest arising from kinship, friendship or membership of an association.”

6. Public Question Time

In accordance with Reg. 7(4)(a) of the Local Government (Administration) Regulations 1996, members of the public in attendance at the meeting may stand, state aloud their name and address, and ask a question in relation to any matter over which the municipality of Bunbury has jurisdiction or involvement. In accordance with Standing Order 6.7(3)(a) a person wishing to ask a question, must complete a question form which is provided in the trays at the back of the public gallery and on the City’s website. The completed form must include your name and address and contain no more than three (3) questions. If your question requires research or cannot be answered at the meeting, it will be taken on notice and you will receive a written response and a summary of your question (and any responses provided) will be printed in the minutes of the meeting.

6.1 Public Question Time

6.2 Responses to Public Questions Taken ‘On Notice’


7. Confirmation of Previous Minutes and other Meetings under Clause 19.1

7.1 Minutes 7.1.1 Minutes – Ordinary Council Meeting The minutes of the Ordinary meeting of the City of Bunbury Council held 30 October 2018 have been circulated. Recommendation The minutes of the Ordinary meeting of the City of Bunbury Council held 30 October 2018 be confirmed as a true and accurate record. Voting Requirement: Simple Majority Required

7.1.2 Minutes – Council Advisory Committees and Working/Project Groups

Applicant/Proponent: Internal Report

Author: Various

Executive: Various

Authority/Discretion: ☐ Advocacy

☐ Executive/Strategic

☐ Legislative

☐ Review

☐ Quasi-Judicial

☒ Information Purposes

Attachments: Appendix MTBN-1 – Audit Committee Minutes 11 October 2018

Summary The following Advisory Committee Meetings were held and the minutes are presented for noting: 1. Title: Audit Committee Minutes 11 October 2018

Author: Greg Golinski Appendix: MTBN-1

Council Committee Recommendation The following Advisory Committee meeting minutes listed in the report be accepted and noted: 1. Audit Committee Minutes 11 October 2018 Voting Requirement: Simple Majority Required


8. Petitions, Presentations, Deputations and Delegations

8.1 Petitions Pursuant to clause 6.10(2) of the City of Bunbury Standing Orders 2012, upon receiving a petition, the Council is to a) Receive the petition and refer to the relevant officer for a report to be submitted within

the next two (2) rounds of Council meetings; or b) Reject the petition

8.2 Presentations

8.3 Deputations

8.4 Council Delegates’ Reports

8.5 Conference Delegates’ Reports

9. Method of Dealing with Agenda Business


10. Reports

10.1 Recommendations from Advisory Committees

10.1.1 Auditors Report and Annual Financial Statements for the year ending 30 June 2018

Applicant/Proponent: Audit Committee

Responsible Officer: David Ransom, Manager Finance

Responsible Manager: David Ransom, Manager Finance

Executive: Mal Osborne, Chief Executive Officer

Authority/Discretion ☐ Advocacy


☒ Legislative

☐ Review

☐ Quasi-Judicial

☐ Information Purposes

Attachments: Appendix RAC-1: Auditor’s Report and Annual Financial Report

Summary The Auditor’s Report and Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2018 are attached at Appendix RAC-1. There are no qualifications to the audit opinion; however the Auditor’s Report does note that the Asset Sustainability Ratio and Operating Surplus Ratio are below the Department of Local Government, Sport and Cultural Industries standard for the last 3 years. Committee Recommendation That Council accept the Auditor’s Report and the Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2018. Voting Requirement: Simple Majority Required Strategic Relevance Theme 4: Our City. Goal: Civic leadership, partnerships and sound governance in delivering with and

for the community. Objective 4.4: A skilled organisation, which exercises responsible asset stewardship,

sound financial management, and exemplary customer service. Background The Auditor General has audited the 2017/18 Annual Financial Report and has provided an Independent Auditor’s Report (refer Pages 70 - 72 in Appendix RAC-1) as required under the relevant provisions of the Local Government Act 1995 (the Act). The Auditor’s Report and Annual Financial Report are commended to Council by the Audit Committee. Furthermore, section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once in every year. Ms Carly Meagher, Director Financial Audit, from the Office of the Auditor General WA, who is representing the Auditor General attended the Audit Committee meeting held


on 11 October 2018 and discussed with the Committee the audit and any queries arising from the 2017/18 Audit. Council Policy Compliance N/A Legislative Compliance Section 7.9(1) of the Act requires the auditor to submit a report to the local government by 31 December each year. Section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once each year. Officer Comments The City’s management and internal control systems are sound. In addition to being monitored internally on a daily and monthly basis, they are also strengthened by an independent assessment each year on the City’s financial management systems and external audit reporting. The independent assessment reviews the City’s financial position, financial management practices and compliance with the requirements of the Act, the Local Government (Financial Management) Regulations, and Accounting Standards. There are five (5) primary financial statements:

- Statement of Comprehensive Income

- Statement of Financial Position

- Statement of Changes in Equity

- Statement of Cash Flows

- Rate Setting Statement

Statement of Comprehensive Income: The Statement of Comprehensive Income (shown on pages 3 to 5 of the Financial Report) shows the extent to which operating expenditure has exceeded operating income during the financial year (i.e. operating deficit). Key financial figures within the audited Annual Financial Report for the year ended 30 June 2018 include: 2018 2017 Operating Revenue $ 56,243,651 $ 56,515,216 Operating Expenses $ 58,023,133 $ 55,739,045 Operating Surplus / (Deficit) $ (1,779,481) $ 776,171 Net Result $ 6,459,257 $ 3,840,772


For the year ending 30 June 2018, the operating deficit was $1.78M compared to an operating surplus of $776K in 2016/17, a decrease of $2.55M. Revenue decreased by $271K and expenditure increased by $2.28M. Operating Revenue –The City received $271K less in 2017/18 than in 2016/17. This was mainly due to receiving less Operating Grants & Subsidies ($725K), Contributions, Reimbursement & Donations ($207K) and Fees & Charges ($1.12M); which was partially offset by receiving more in Rates ($1.57M) and Interest Earnings ($221K). Note: Operating Grants were greater in 2016/17 due to receiving an advance payment for 2017/18 of $821K, and Fees and Charges were down in 2017/18 mainly due to lower Parking Fee income of $1.07M. Operating Expenditure – The increase in operating expenditure of $2.28M from the previous year was mainly due to an increase in expenditure of Employee Costs ($552K), Depreciation on Non-Current Assets ($1.12M) and Materials and Contract ($645K). While offset by a reduction in the following expenditure: Consultants ($144K), Insurance ($119K) and Interest Expenses ($65K). Net Result - When Capital Grants ($6.90M) and the Net Profit on Asset Disposal ($1.49M) etc. are included, the Net Result was a surplus of $6.46M. This compares to a surplus of $3.84M in 2016/17. The Statement also accounts for the Changes on Revaluation of Non-Current assets which was a decrease of $2.18M in 2017/18 resulting in Total Comprehensive Income for 2017/18 of $4.28M. Statement of Financial Position: The Statement of Financial Position (shown on page 6 of the Financial Report) shows the assets and liabilities which make up the community equity as at the 30 June 2018. Key financial figures within the Annual Financial Report for the year ended 30 June 2018 include: 2017 2017 Current Assets $ 39,244,271 $ 45,864,990 Current Liabilities $ 10,371,209 $ 10,330,650 Current Assets over Current Liabilities $ 28,873,062 $ 35,534,340 Non-Current Assets $ 577,992,363 $ 567,260,965 Non-Current Liabilities $ 13,431,449 $ 13,638,280 Total Equity $ 593,433,975 $ 589,157,025 The City’s Current Assets exceed Current Liabilities by $28.87M compared to $35.53M in 2016/17, a decrease of $6.66M. This is mainly due to a decrease in Unspent Grants of $11.50M used for the Koombana Bay Foreshore expansion and upgrade, and a decrease in the following cash backed reserves: Asset Management and Renewal ($2.36M), and Depot Construction ($2.28M). This was offset by an increase in the General Parking reserve of $6.23M mainly from the sale proceeds of the Cornwall Street Car Park; and an increase in the Building Restoration and Maintenance reserve of $2.18M. These changes together with a decrease in the Revaluation Surplus of $2.18M (from the Revaluation of Non-Current Assets), increased the total community equity at 30 June 2018 by $4.28M to $593.43M.


Statement of Changes in Equity: The Statement of Changes in Equity (shown on page 7 of the Financial Report) shows the extent to which the community equity has been increased by the net result of the year’s activities. For the year ending 30 June 2018, the Community Equity increased from $589.15M to $593.43M, an increase of $4.28M. Statement of Cash Flows: The Statement of Cash Flows (shown on page 8 of the Financial Report) shows the nature and amount of City’s cash inflows and out flows from all activities. The City’s cash held at the end of the reporting period was $36.31M compared to $42.55M in 2016/17. Rate Setting Statement: The Rate Setting Statement (shown on pages 9 and 10 of the Financial Report) shows the amount of rates required to be raised to fund the City’s operations during 2017/18. In 2017/18 $37.18M in rates were raised, an increase of $1.57M or 4.4% on 2016/17. Financial Information by Ratio: 2018 2017 2016 Current Ratio 1.297 1.246 1.111 Current Assets as a ratio of Current Liabilities. (Measure of short term liquidity, i.e. the ability of the City to meet its liabilities when they fall due. A ratio of greater than 1.0 indicates the City has more current assets than current liabilities. The Department of Local Government indicates that the standard is met if the ratio is greater than 1.00). Asset Sustainability Ratio 0.707 0.643 0.524 Capital renewal and replacement expenditure as a ratio of depreciation expense. (Measures the extent to which assets are being renewed/replaced compared to the amount consumed i.e. depreciation. The Department of Local Government indicates that the standard is met if the ratio is greater than 0.90, and is improving if the ratio is between 0.90 and 1.10. To improve this ratio the City will need to allocate more capital expenditure on the renewal or upgrade of existing assets). Asset Consumption Ratio 0.601 0.621 0.620 Depreciated replacement costs of assets as a ratio of current replacement costs of depreciable assets. (Measures the extent to which depreciable assets have been consumed by comparing their written down value to their replacement cost. The Department of Local Government indicates that the standard is met if the ratio is greater than 0.50, and is improving if the ratio is between 0.60 and 0.75). Asset Renewal Funding Ratio 0.943 0.743 0.748 NPV of planning renewal over 10 years as a ratio of NPV of required capital expenditure over 10 years. (Measures the ability of a local government to fund its projected asset renewal / replacements in the future. The Department of Local Government indicates that the standard is met if the ratio is between 0.75 and 0.95).


Debt Service Cover Ratio 3.592* 4.492 3.287 Operating Surplus before Interest and Depreciation as a ratio of principal and interest expense for borrowings. (Measures the City’s ability to service debt out of its uncommitted or general purpose funds available for its operations. The Department of Local Government indicates that a Basic standard is achieved if ≥ 2.0. An Advanced standard is ≥ 5.0). *Note: The Debt Service Cover Ratio is distorted in the 2018 Financial Year as the City received an early repayment of a self-supporting loan from DFES. If this was ignored, the calculation disclosed in the 2018 column above would be 4.891 Operating Surplus Ratio (0.009) (0.005) (0.066) Operating Revenue minus Operating Expenditure as a ratio of own source operating revenue. (A result of lower than zero indicates that the City has an operating deficit. The Department of Local Government indicates that a Basic standard is achieved if the ratio is greater than zero. To improve this ratio the City needs to either reduce operating expenditure and/or increase operating revenue. Note: A significant operating expense is depreciation which was $14.2M in 2017/18. This expenditure is currently being reviewed to ensure that this is not overstated). Own Source Revenue Coverage Ratio 0.953 0.948 0.948 Own source operating revenue as a ratio of operating expense. (Measures the City’s ability to cover operating expenses from own source revenue. The higher the ratio, the more self-reliant the local government is. The Department of Local Government indicates that an Advanced standard is achieved if the ratio is greater than 0.9). Analysis of Financial and Budget Implications There are no financial or budget implications for the Council to accept the Annual Financial Statements and draft Auditor’s Report. Community Consultation An abridged Annual Financial Report will be included in the City’s 2017/18 Annual Report.


10.2 Chief Executive Officer Reports

10.1.2 2019 Council Meeting Schedule

Applicant/Proponent: Internal

Responsible Officer: Maureen Keegan, Council Support Officer

Responsible Manager: Greg Golinski, Manager Governance

Executive: Mal Osborne, Acting Chief Executive Officer



☒ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix CEO-1: Proposed 2019 Council Meeting Schedule

Summary Regulation 12(1) of the Local Government (Administration) Regulations 1996 requires a local government to each year give public notice of the dates on which Ordinary Council Meetings are to be held for the next twelve months. The purpose of this report is for Council to consider its meeting schedule for 2019. Executive Recommendation That Council: 1. Adopt the 2019 Council Meeting Schedule as presented, noting that all meetings will take

place in the Council Chambers, 4 Stephen Street Bunbury commencing at 5.30pm. 2. Request that the Chief Executive Officer undertake all statutory advertising in this regard. Voting Requirement: Simple Majority Required Strategic Relevance Theme 4: Our City Goal: Civic leadership, partnerships and sound governance in delivering with and

for the community. Objective 4.3: Trusted leadership and robust decision making Background Council currently operates on a fortnightly meeting schedule, alternating between Council Briefing Sessions and Ordinary Meetings pursuant to Council Decision 313/13. Council has also historically gone into recess over the Christmas/New Year period, with the last Ordinary Meeting of Council typically being held in mid-December, reconvening in mid-January. Council Policy Compliance Not applicable.


Legislative Compliance Regulation 12(1) of the Local Government (Administration) Regulations 1996 requires local governments to give public notice of the dates on which it intends to hold its Ordinary Council meetings for the ensuing twelve (12) month period. Officer Comments Officers have prepared a proposed 2019 Council Meeting Schedule based on historical precedent which is attached at Appendix CEO-1. The last Ordinary Meeting of Council for 2018 is scheduled for 11 December, and the draft schedule proposes that Council reconvene on 15 January 2019 (Council Briefing Session). Officers believe the current fortnightly meeting schedule works effectively, therefore it is recommended it remains unchanged. It is also noted that the next local government elections will be held on 19 October 2018. Analysis of Financial and Budget Implications All advertising costs can be accommodated within the 2018/19 Budget. Community Consultation Not applicable. Councillor/Officer Consultation Not applicable.


10.2.2 2017/18 Annual Electors Meeting


Responsible Officer: Maureen Keegan, Council Support Officer

Responsible Manager: Greg Golinski, Manager Governance




☒ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Nil

Summary The purpose of this report is for Council to confirm a date for the 2018 Annual Meeting of Electors. Executive Recommendation That Council: 1. Schedules the 2018 Annual Meeting of Electors for Tuesday 4 December 2018,

commencing at 6.00pm in the City of Bunbury Function Room, 4 Stephen Street Bunbury. 2. Request the Chief Executive Officer undertake all statutory advertising in this regard. Voting Requirement: Simple Majority Strategic Relevance Theme 4: Our City Goal: Civic leadership, partnerships and sound governance in delivering with and

for the community. Objective 4.3: Trusted leadership and robust decision making Background In accordance with the provisions of section 5.27 of the Local Government Act 1995 (the Act), a general meeting of electors of a district is to be held once every financial year, but not more than 56 days after the local government accepts the annual report for the previous financial year. In addition, section 5.29(1) of the Act requires a minimum 14 day notice period of the annual meeting of electors be given via local public notice.


Legislative Compliance Subdivision 4 of Division 2 of Part 5 of the Local Government Act 1995 deals with meetings of electors. Officer Comments Last year’s Annual Meeting of Electors was held on Thursday 5 December 2017. The City’s annual report will be presented to Council for adoption on 27 November 2018. Giving consideration to the requisite statutory timeframes (in particular the 14 day notice period), the lead time required to lodge a notice in any of the local newspaper publications as necessary for a “local public notice”, and the adoption of the annual report, it is suggested that Council hold its 2018 Annual Meeting of Electors on Tuesday, 4 December 2018, following the agenda briefing that afternoon. Analysis of Financial and Budget Implications All advertising costs can be accommodated within the 2018/19 budget. Community Consultation Not applicable


10.2.3 Council Major Projects – Prioritisation of Key Projects


Responsible Officer: Mal Osborne, Chief Executive Officer

Responsible Manager: Mal Osborne, Chief Executive Officer


Authority/Discretion ☒ Advocacy

☒ Executive/Strategic

☒ Information Purposes

Attachments: Appendix CEO-2 Information Sheet on identified projects

Summary The 2018/19 financial budget contains the project PR-4631 Develop Business Cases for Future Capital Works. This will subsequently enable the scoping of works, preparation of detailed designs and budgets to be developed for each of the priorities identified by Council and enable the City to apply for funding and partnering opportunities (federal, state and public private partnerships). The development of sound business cases will assist the City of Bunbury to promote its projects to ensure we are best placed to be successful with grant applications submitted. This project also links item 2(d) of the Chief Executive Officer’s Key Performance Indicators:

d) ensure the preparation of Business Cases for 5 agreed key projects that meet Council priorities and are ready for lodgement for grant opportunities.

This purpose of this report is for Council to prioritise and agree to projects which have been identified by the Executive Leadership Team as suitable for progression. Executive Recommendation That the Council; 1. Endorse the following five projects as those that Council agrees are priorities for the Chief

Executive Officer to prepare business cases:

a) Youth Precinct/Skate Park b) Civic and Cultural Precinct c) CBD Revitalisation (including LIMP) d) Hay Park Masterplan e) Hands Oval Infrastructure

2. Request the Chief Executive Officer to provide the completed business cases to the Council

for information and noting. Voting Requirement: Simple Majority


Strategic Relevance Theme 1: Our Community and Culture Goal: A safe, healthy and cohesive community, with a rich cultural life, and

supportive social environment. Objective 1.2: An active community, able to access a wide range of sporting, recreation

and leisure options Background In order to progress the preparation of business cases, direction from the Council is sought on which projects they feel are the priorities. This will then enable the scoping of works, preparation of detailed designs and budgets to be developed for each of the five (5) identified priorities to enable Council to be in a position to apply for any funding opportunities (federal and state). The Executive have identified the following projects that currently are not included as specific projects within the Integrated Financial Plan and subsequently prepared information updates on each as attached at Appendix CEO-2:

Civic and Cultural Precinct

Youth Precinct/Skate Park

Big Swamp Master Plan

Review of Leschenault Inlet Master Plan

Glen Iris

Outer Harbour Community Infrastructure

Hands Oval Redevelopment

Boulters Height Redevelopment

Smart Cities Project

Timber Jetty Interpretation

CBD Revitalisation

Withers Redevelopment

Wastewater Re-Use

Water Splashpark/Playground

Hay Park Development

South West Sports Centre Upgrade It is noted that both the Federal and State Governments are currently in tight financial environments and the development of sound business cases will assist the City of Bunbury to promote is projects to ensure we are best placed to receive funding. Council Policy Compliance Not applicable. Legislative Compliance Not applicable.


Officer Comments The Executive have developed a list of potential projects of high importance for the City of Bunbury and the Bunbury Geographe area and consider the following criteria should be reflected upon when assessing the projects:

Strategic alignment - promoting projects that align with the Community Strategic Plan

Financial factors – funding stream available or projects that maximise external funding opportunities to the City.

Organisational efficiency - promote projects that improve the effectiveness of our people

Sustainability - promote projects that increase positive social and environmental outcomes

Risk - promote projects that have lower risk of failure

Resilience - promote projects that increase the ability to respond to environmental changes

Technology fit - promote projects that leverage existing infrastructure and skills In addition to the above points, the below quartile breaks down the large number of projects into a format that identifies:

Projects that might require more planning and scope definition prior to developing business cases;

Projects that may be able to be delivered through existing operational budgets;

Projects that the City expects would be funded wholly or partly by State Government and/or others; and

A rough order of estimated project costs, with more accuracy of capital and operating costs (including whole-of-life-costs).

COVERED BY OPEX

1. Big Swamp (funded within existing budgets circa $60K – implementation of report TBC later by Council)

2. Glen Iris (to be contained within existing opex budgets and larger projects funded through DCP)

3. Smart Cities Strategy (developed in-house)

4. Withers (Capex by State Government) 5. 2nd City Strategy 6. Review Parking Strategy 7. POS Strategy Implementation 8. Recreation Strategy Implementation

$0-$2M

1. Water Splashpark – (funded if accepting of partial investment from the sale of Lot 1881)

2. CBD Revitalisation Planning + LIMP Review (should be connected as both interact – looking at some state government funding – some City contribution will be needed)

3. Boulters Heights – Additional funding required on top of proceeds from sale of Wither’s Crescent

$2-$10M

1. Youth Precinct 2. Timber Jetty Interpretation 3. Hay Park Masterplan 4. SWSC Upgrade, Scope to be

determined 5. Waste Water Reuse(Stakeholders –

WC, SoC, SoD, Aqwest)

$10+M

1. Civic and Cultural Precinct 2. Hands Oval Infrastructure – Scope TBD 3. CBD Works and LIMP – Scope TBD


Prioritisation is required to determine which projects are to have business cases and further scope/detailed design in readiness to progress to “shovel ready” status. Without this detail, the City is unable to submit competitive grant submissions This report seeks Council to nominate its priorities to provide further direction to staff to progress business cases. Furthermore, where projects are identified to have business cases prepared, those projects should become priorities for own-source funding from the City in order to progress them, even if that is through staging of the project. This will assist in demonstrating a commitment to the priorities and to ensuring that projects are commenced. It should also be noted that there will be other competing demands for scarce investment sources for the implementation of works recommended from strategic documents. As an example, the Public Open Space Strategy and the Recreation Strategy will identify funding requirements for the implementation of improvements once endorsed by Council. Analysis of Financial and Budget Implications

It is noted that the current list of projects have not currently been included in the Long Term Financial Plan and estimates to deliver the projects are only preliminary calculations. Preliminary work to scope and cost each of the five (5) identified priority projects will be undertaken as part of business case planning process. It is envisaged that upon the completion of the business cases, there will more accurate financial details reflected and a clear outline of the financial implications these projects will have on the City’s annual budget and Long Term Financial Plan. The 2018/19 budget includes the provision of $100K (PR-4631 Develop Business Cases for Future Capital Works) for the purpose of developing business cases, design drawings etc. Officers have identified that there is scope in the City’s finances to fund additional projects over the next decade. The City’s debt levels are reducing, allowing capacity for new loans. Business cases will identify the operating costs and asset management obligations of each project. Officers have also identified possible external funding opportunities for capital projects;

1. Lotterywest

2. State Government agencies

3. State Government Election commitments, (due March 2021)

4. Australian Government Election commitments, (due May, 2019)

5. Government – Building Better Regions Fund Infrastructure Projects Stream

6. Government – Building Better Regions Fund Community Investments Stream

Further financial analysis is required to componentise projects so that a successful grant will see project/s delivered (even under a staged approach).


Community Consultation Many of the projects contained in the list presented, have been the matter of previous community consultation/discussions and in some cases, driven by the community requesting Council explore the development of these facilities. Community engagement will take place during the preparation of the business cases, and once developed it is envisaged that further consultation will be undertaken as project scope matures and funding streams are sought. Councillor/Officer Consultation This matter has been discussed with Elected Members and is now presented to Council for formal endorsement. Applicant Consultation Not applicable.


10.2.4 City of Bunbury Membership to the Bunbury Geographe Economic Alliance

Applicant/Proponent: Internal Report

Responsible Officer: Malcolm Osborne, Chief Executive Officer

Responsible Manager: Malcolm Osborne, Chief Executive Officer

Executive: Malcolm Osborne, Chief Executive Officer



☐ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Nil

Summary The City of Bunbury was previously a member of the Bunbury Wellington Economic Alliance (BWEA) but resolved to cease its membership in 2016 until the Alliance revised its constitution and encompassed the whole Bunbury Geographe Region. At the Annual General Meeting of the BWEA held on Monday 29 October 2018, it was resolved that the Board change its name to Bunbury Geographe Economic Alliance. The purpose of this report is for Council to agree to its involvement and membership of the Bunbury Geographe Economic Alliance. Executive Recommendation That Council agrees to become a member of the Bunbury Geographe Economic Alliance, with a maximum annual contribution of $25,000. Voting Requirement: Simple Majority Strategic Relevance Theme 2: Our Economy Goal: A thriving and dynamic economy, that plays to its strengths and confidently

presents to the world. Objective 2.2: Bunbury is known far and wide for its strengths as a place to live, visits and

do business Background At the Council Meeting held 19 April 2016, Council resolved (Decision 107/16) to cease financial support to the Bunbury Wellington Economic Alliance and not renew membership for the 2016/17 financial year. Prior to the Council Decision, the City of Bunbury was a financial member of the Bunbury Wellington Economic Alliance from its inception in 2001. Councillor Brendan Kelly was the former representative for the City of Bunbury on the Board of Management when the City was a financial Member. As part of the City of Bunbury becoming a member under the category of Local Government Partner of the Bunbury Geographe Economic Alliance, the City of Bunbury would receive:


• providing opportunities for members to have high level engagement with senior members of Government, Opposition and the bureaucracy.

• prepare and/or coordinate submissions and/or responses to government on economic development/infrastructure/planning issues – a combined, regionally based submission, particularly with the backing of six local government authorities is well received by government.

• members will receive a monthly e-newsletter to keep them informed of BGEA initiatives, events and submissions.

• provide briefings on alliance activities to Local Government Partners. • Special reference is made in the Annual Report to BGEA's Local Government Partners. • BGEA BOARD: Representation by Shire Presidents and the Mayor of the City of Bunbury on

the BGEA Board is encouraged for Local Government Partners. • Local Government Partners will be recognised on the BGEA website. . Council Policy Compliance Not Applicable. Legislative Compliance Not Applicable. Officer Comments At present, the Bunbury Geographe Economic Alliance is an incorporated not-for-profit member-focused organisation. It is a joint venture partnership between Capel, Collie, Dardanup, Donnybrook-Balingup and Harvey Councils, along with private organisations, with the aim of the organisation being to facilitate economic development of the region. By becoming a financial member of the Bunbury Geographe Economic Alliance, this would support the regional economic development initiatives assists in meeting Council’s objective of having Bunbury recognised as a place to live, work and invest. The current sponsors of the Bunbury Wellington Economic Alliance with the other local authorities contributing being the Shires of Collie, Dardanup, Harvey, Donnybrook-Balingup and Capel with the membership fee is determined based on the population of the local government. BGEA website notes the Alliance as a: • unique partnership encompassing community leadership through the five local

governments of the Bunbury Wellington sub-region, industry leadership in the resources, energy, transport, engineering, construction, water supply, timber processing, telecommunications, education, consulting and accounting sectors.

• works on behalf of our members to promote economic growth and development. • make the Bunbury Geographe area a preferred location to live, work and invest. • advocating for investment by government in critical enabling infrastructure and services, to

foster growth in existing enterprises, and to attract new investment.


Analysis of Financial and Budget Implications The current financial Budget contains provision of $25,000 for the purpose of “Maintain relationships BGGP (Bunbury Geographe Growth Plan) which would be utilised for the funding of the membership to the group. Community Consultation Not Applicable. Councillor/Officer Consultation The purpose of this report serves to bring the matter of whether the City of Bunbury wishes to become a financial member of the Bunbury Geographe Economic Alliance. Applicant Consultation Not Applicable.


10.3 Director Corporate and Community Services Reports 10.3.1 Tenders for the Supply and Installation of Fibre Optic Cable to Withers Library and Bunbury

Wildlife Park

File Ref: RFT1819-00009


Responsible Officer: Jane Parsons, Contracts and Procurement Officer

Responsible Manager: Martin Robert, Manager Information and Communication Technology

Executive: Stephanie Addison-Brown, Director Corporate and Community Services



☐ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix CRUSC-1: Evaluation Report

Summary Tenders for the Supply and Installation of Fibre Optic Cable to Withers Library and Bunbury Wildlife Park have been received and Council is requested to appoint the preferred Tenderer as the contractor. Executive Recommendation That Council: 1. Endorse the recommended contractor to supply and install fibre optic cable to Withers Library

and Bunbury Wildlife Park. 2. Authorise the Chief Executive Officer to enter into a contract with the recommended

contractor for the supply and installation of fibre optic cable to Withers Library and Bunbury Wildlife Park is in accordance with the report evaluation.

Voting Requirement: Simple Majority Strategic Relevance Theme 4: Our City Goal: Civic leadership, partnerships and sound governance in delivering with and

for the community. Objective 4.4: A skilled organisation, which exercise responsible asset stewardship, sound

financial management, and exemplary customer service. Background The Withers Fibre Link project will provide a fibre-optic link between the City of Bunbury’s data centre and both the Withers Community Library and the Bunbury Wildlife Park. Funding for the project is from a grant received from the Department of Industry, Innovation and Science through their Safer Communities Fund (Round 2).


The tender was advertised in the West Australian and the Bunbury South West Times newspapers on Wednesday 5 September 2018 and Thursday 6 September 2018 respectively. The tender document was made available via www.tenderlink.com/bunbury/. A total of 140 suppliers viewed the advertisement, 22 companies downloaded the documentation, and at closing four (4) responses were received from:

Tenderer Name Address

CipherTel Pty Ltd Unit 3, 9 Bourke Street Bunbury 6230

JCW Electrical Group 7A Stuart Street Bunbury WA 6230

Kalbay Pty Ltd AFT Kardel Unit Trust T/As Professional Cabling Services

Unit 4, 4 Picton Road Bunbury WA 6230

Lightspeed Communications and Electrical Pty Ltd

68 Gordon Road East, Osborne Park WA 6017

An evaluation panel comprising internal staff evaluated the responses as follows: - Manager Information Communication and Technology - ICT Change Coordinator - Engineering Technical Officer - Contracts and Procurement Officer (non-voting)

The tenders were evaluated using the following criteria: Compliance Criteria – Yes / No answers Qualitative Criteria weighting

1. 30% Relevant Experience and Key Personnel 2. 20% Tenderers Resources 3. 25% Demonstrated Understanding

Evaluation of the tender prices (and ranking) has been assessed but because the results are "commercial in confidence" details are listed in a Confidential Report that has been circulated to members at Appendix CRUSC-1. Council Policy Compliance Tendering for goods and services is conducted in accordance with:

Model Purchasing Policy

Access and Inclusion Policy (DAIP) Legislative Compliance Advertising and processing of tenders was conducted in accordance with:

Local Government (Functions and General) Regulations 1996, Part 4 Tender for Providing Goods or Services

Local Government Act 1995

http://www.tenderlink.com/bunbury/


The cost of this procurement exceeds the Chief Executive Officer’s level of authority, therefore it has been dealt with in accordance with Local Government (Functions and General) Regulations 1996 (Part 4 - Tenders for Providing Goods or Services). Officer Comments All members of the evaluation panel have signed a declaration of confidentiality and interest to ensure probity. The Evaluation Report at Appendix CRUSC-1 details the evaluation process and recommendation for award. Analysis of Financial and Budget Implications PR-4609 Establish Withers Fibre Link has been funded by a grant received from the Department of Industry, Innovation and Science through their Safer Communities Fund (Round 2). This was approved on 24 May 2018 for a total of $469,000 (plus GST where applicable). The expectation with the grant is that the works will be completed within this financial year and that the grant will fully fund the works Community Consultation Not Applicable Councillor/Officer Consultation Consultation was undertaken with the Manager Information and Communication Technology, ICT Change Coordinator, Team Leader Information Technology, Director Works and Services, Manager Engineering, Engineering Technical Officer, Manager Works Administration and the Facilities Maintenance Supervisor in the specification, and the civil works component of the contract. Applicant Consultation Not Applicable


10.4 Director Planning and Development Services Reports

Nil


10.5 Director Works and Services Reports

10.5.1 Road Name Request for Lot 224 & 246 Spencer Street South Bunbury Subdivision

File Ref: R00561-12

Applicant/Proponent: Aaron Bell, Able Planning & Project Management

Responsible Officer: Beth Kozyrski, Engineering Technical Officer

Responsible Manager: Shaun Millen, Manager Engineering and Civil Operations

Executive: Gavin Harris, Director Works & Services



☒ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix DWS-1 Email Correspondence – LNG Appendix DWS-2 Strata Plan

Summary Landgate Geographic Names (LGN) received a request from Able Planning and Project Management (AP&PM) requesting approval of a road name for their subdivision of Lot 224 and 246 Spencer Street, South Bunbury. As per the Land Act, endorsement by the relevant Local Government Authority is necessary prior to any submissions being made to LGN. Executive Recommendation That Council endorse the road name “Canter Crescent” for the subdivision on Lots 224 and 246 Spencer Street, South Bunbury. Voting Requirement: Simple Majority Strategic Relevance Theme 3: Our places and spaces. Goal: A natural and built environment that reflects Bunbury’s core values. Objective 3.3: High quality urban design, well-planned neighbourhoods with housing

choice, and appropriate provision for diverse land uses to meet the community’s needs.

Background On Tuesday 16 October 2018 the City received an email from LGN advising they had a request from AP&PM for approval of road names for a Strata Subdivision Lots 224 and 246 on Plan 2138, Street numbers 254 and 256 Spencer Street, South Bunbury (Appendix DWS-1). AP&PM have submitted the proposed road names, Canter, Stallion, Thoroughbred and Trifecta to be considered for their Survey Strata Subdivision. The submitted proposed road names have all passed LGN’s preliminary validation. Supporting information for the origin of the proposed road names is due to the subdivision’s close proximity to the Bunbury Turf Club. AP&PM’s preferred road name is Canter Crescent as shown on the draft Survey-Strata Plan 77539 showing the application of Canter Crescent to the common property driveway (Appendix DWS-2).


Council Policy Compliance There is no existing Council Policy relevant to this issue. Legislative Compliance In order for the LGN to approve an official road name, Local Government endorsement is required. Officer Comments Recommend endorsement of the name “Canter Crescent.” The submitted proposed road names have all passed LGN’s preliminary validation. The origin of the proposed road names is due to the subdivision’s close proximity to the Bunbury Turf Club. Analysis of Financial and Budget Implications This proposal will not impact on the Council’s financial and budgetary implications. Community Consultation Community Consultation not required, Councillor/Officer Consultation Nil Applicant Consultation Nil


11. Applications for Leave of Absence

No requests for Leave of Absence had been received at the time of printing.


12. Motions on Notice

12.1 Cr Kelly Motion on Notice

Author: Councillor Brendan Kelly


Attachments: Appendix MoN-1: Governance Review 2015 – Research and Discussion

Cr Kelly has submitted the following motion for the Ordinary Council Meeting 13 November 2018. That Council direct the CEO to commence an independent review of the governance model of the Bunbury Regional Art Gallery, and that the terms of reference for the review include:

1. A period of public consultation that includes artists, art collectors and arts administrators

from Bunbury and the South West Region, and 2. Exploring the option of introducing an independent Board of Management for the Bunbury

Regional Art Gallery. Summary The purpose of this Motion on Notice is for the Bunbury City Council to resolve to commence an independent review of the governance model of the Bunbury Regional Art Gallery. Councillor Recommendation* * Please note Executive comments in the Analysis of Financial and Budget Implications That Council direct the CEO to commence an independent review of the governance model of the Bunbury Regional Art Gallery, and that the terms of reference for the review include: 1. A period of public consultation that includes artists, art collectors and arts administrators

from Bunbury and the South West Region, and 2. Exploring the option of introducing an independent Board of Management for the Bunbury

Regional Art Gallery. Background The Bunbury Regional Art Gallery (BRAG) is owned and managed by the City of Bunbury, supported by the State Government through the Department of Culture and the Arts, and is the premier public art gallery in the South West of Western Australia. BRAG endeavours to present a wide range of exhibitions that have a strong regional significance and national relevance, with exhibitions by local artists and touring exhibitions from around Australia.


BRAG also offers a range of education opportunities and resources for all levels from pre-primary to tertiary education, as well as making rooms available for hire for meetings, cultural activities and functions. Through a diverse programme of exhibitions and workshops, focusing on community access and engagement, BRAG provides regional artists and audiences valuable exposure to contemporary and traditional art. BRAG provides exhibition and artistic development opportunities for artists working in regional and remote locations and requires an inclusive governance model to operate at an optimum level. Strategic Relevance The community of Bunbury believes that fostering arts and culture as a point of difference will make Bunbury a better place to live or visit (City of Bunbury ‘Strategic Community Plan, 2018-2028’). Bunbury is rich in its art and culture, showcasing its multi-faceted heritage (‘Bunbury in Profile’). This Motion supports the City’s Strategic Community Plan - Theme 1: Our community and culture’ Goal: A safe, healthy and cohesive community, with a rich cultural life, and

supportive social environment. Objective 1.4: Arts, culture, heritage and events that enrich our understanding and

enjoyment of life, celebrate our identity and bring the community together.

Theme 4: ‘Our City’ Goal: Civic leadership, partnerships and sound governance in delivering with and

for the community. Objective 4.2: A highly-engaged and involved community, working together on strategy

development and implementation Councillor Comments Some of the most successful regional galleries, making major contributions to their local community and economy, have structures in place which provide a degree of independence from their local government authority. Positive public and stakeholder perceptions are vital to the success of regional galleries, which enables independent fundraising and garners community support. This Motion of Notice serves to enable the City to review its position delivering cultural leadership by including the broader arts community in the governance of BRAG. It is anticipated that successful governance by the Boards of the Bunbury Regional Entertainment Centre and the Stirling Street Arts Centre will be exemplars.


The motion aims to ensure that a governance structure is put in place that provides the community with a sustainable regional gallery, which contributes to the social and economic vitality of the region. Analysis of Financial and Budget Implications It should be noted that the Department of Local Government, Sport and Cultural Industries are unlikely to have the resources to undertake this review, so it is likely that an external consultant will need to be sourced. There is no funding in the 2018/19 budget to undertake an independent review as proposed. It is expected that an amount up to $30,000 would need to be allocated for an independent review based on previous work of this nature undertaken ie. the recent review of Media and Marketing. Should Council support the motion on notice, a budget amendment will need to be made to provide the necessary funding. The only identified source for these funds would be to consider a reduced surplus position for the 2018/19 budget. Such an adjustment would require an absolute majority vote. To enable the Chief Executive Officer to enact Cr Kelly’s proposed motion, the following point 3 would also be required to be passed by Council by an absolute majority: 3. That Council amends the 2018/19 budget by increasing expenditure in the budget area of

Chief Executive Leadership (Contract Expenses) by $30,000 for the purpose of undertaking an independent review of the governance model of the Bunbury Regional Art Gallery.

Voting Requirements: Absolute Majority required Officer Comments Advice from Cr Kelly regarding his proposed independent review was that it should be a desktop exercise comparing the current BRAG governance arrangements with those of six other similar sized galleries across Australia, and for the review to be written along the lines of the report presented to Council on 29 September 2015. Cr Kelly also suggested a community consultation component be included as part of the review. Background information

In late 2013, a Review of Operational Structures and Functions at BRAG was undertaken via a

“BRAG Working Group” comprising the following stakeholders:

Cr Murray Cook (Chairperson);

Cr Neville McNeill;

David Ansell, Acting Deputy Director General, Department of Culture and the Arts (DCA);

Dr Stefano Carboni, Director ART Gallery of Western Australia (AGWA) (with Brian Stewart as his delegate);

Beth Ferguson, Bunbury Regional Arts Management Board (BRAMB) Chairperson;

Margaret Perkins, Stirling Street Arts Centre (SSAC) representative on BRAMB;

Tresslyn Smith, City of Bunbury Art Collection Committee Chairperson (and member of BRAMB)

Julian Bowron, Director BRAG


Stephanie Addison-Brown, Director Community Development

Wayne Wright, Director Corporate Services

The endorsed brief for the Review of Operational Structures and Functions of BRAG was:

1. Undertake a review of BRAMB’s governance model to consider the following activities:

a. Review of the BRAMB constitution

b. Establish a three-way Memorandum of Understanding (MOU) between the City of

Bunbury, AGWA and BRAMB

c. Review options for funding

2. Undertake a review of the previous efficiency and functions reviews of BRAG undertaken

by BRAMB as part of this process.

3. Undertake a review of the relationship between BRAMB and City of Bunbury’s Art

Collection as part of this process.

On 4 February 2014, Council considered the following recommendations from the BRAG Working

Group:

1. That the following documents be prepared and implemented: a. Memorandum of Understanding between City of Bunbury, Art Gallery of Western

Australia and Bunbury Regional Arts Management Board detailing the strategic focus for BRAMB

b. Separate three year funding contracts to be prepared between: i. City of Bunbury and BRAMB ii. AGWA and BRAMB

c. An amended BRAMB constitution reflecting that Council will no longer be a party to the constitution and that the purpose of the constitution is solely for use by BRAMB as an independent Board for their own governance purposes. Amendments are to include the following: i. Remove the requirement to have a Councillor representative on BRAMB ii. Remove the requirement to have a City of Bunbury staff representative on

BRAMB iii. Remove all reference to constitutional changes being brought back to Council

for approval iv. Remove all reference to Council approving appointments or reappointments of

Board members to BRAMB v. Remove all reference to Council being mandatorily involved in the appointment

of the Director BRAG vi. Remove any other clauses that require Council involvement in the governance of

BRAMB 2. That the matter of the management of the City of Bunbury Art Collection be referred to the

City of Bunbury Art Collection Committee to review with the assistance of experts from the Art Gallery of Western Australia and for that Committee to make a recommendation to Council within three (3) months.

At that meeting, an alternative recommendation was moved by Cr Hayward (seconded by Cr Steck)

which was carried 11/1, Council Decision 35/14 as follows:


1. Council thanks the Bunbury Regional Art Gallery Working Group for its efforts and notes the recommendations.

2. Given the desire for more creative projects and vibrancy in our community and the limitations on the Board’s ability to attract additional funding or initiate any change to the services it delivers, Council no longer funds the Bunbury Regional Arts Management Board.

3. The Bunbury Regional Arts Management Board’s tenure of management of the Bunbury Regional Art Gallery end at 30th June 2014 and the Board find alternative accommodation as of 1st July 2014.

4. The management and operational funding of the Bunbury Regional Art Gallery be provided by the Council’s financial management systems.

5. The Director and Staff employed at the Bunbury Regional Art Gallery be offered employment with the Council, to be managed by the CEO, or upon his delegation by the Director Community Development, at the same rates and conditions as their current terms and conditions.

6. The CEO of the Bunbury City Council, in conjunction with Art Gallery of Western Australia, arrange in-house regional consultation and national research to be conducted of contemporary governance models of Art Galleries, or related Boards and constitutions, that enables an independent Board to effectively and proactively oversee the management and functions of the Bunbury Regional Art Gallery, including management of the City of Bunbury Art Collection.

7. That the CEO submits recommendations for a suitable model of governance to Council prior to February 2016.

8. The CEO invite the Director of the Bunbury Regional Art Gallery and the General Manager Bunbury Regional Entertainment Centre, in consultation with the Department for the Arts and other relevant stakeholders, to participate and guide inhouse regional consultation and national research on the establishment of a "Creative City Strategy" and submit recommendations to Council by 30th June 2014.

As a result of this decision, BRAG was transferred to City management effective 1 July 2014.

After 12 months of operation under City management, a review was provided to Council (attached

at Appendix MoN-1) which also included a review of governance models of other galleries in

Australia. A further Council Decision (336/15) was made on 29 September 2015 which was to leave

the existing governance arrangements in place.

That Council: 1 Note the Bunbury Regional Art Galleries Governance Review. 2. Continues to manage the Bunbury Regional Art Galleries under the current arrangements. 3. Request the Chief Executive Officer to consider the establishment of a Greater Bunbury

Regional Arts Advisory Group as part of the review and future direction for the Creative Bunbury Strategy.

4. Supports the establishment of an independent trust or foundation for the Bunbury Regional Art Galleries with the aim of seeking and maintaining funds for acquisition of art works for the City collection and support of the gallery.

It should be noted that the report to Council on 29 September 2015 referred to a 2014 survey of

National Public Galleries (45 responses) with the following information supplied regarding the

range of governance models:


33 - local government owned and operated

9 - managed by an incorporated association

2 – company limited by guarantee

1 – independent trust

Funding Advice

During the BRAG Working Group review process, it was noted and minuted that the Director BRAG at the time spent much of his time “applying for grants and seeking enough sponsorship just to keep the galleries operating”. A previous report noted the previous Director BRAG spent 42% of her time on Board administration. This is no longer the case with BRAG being operated by the City and being provided with considerable in-kind support from other departments within the City (marketing, finance, events, community development, ICT, Museum etc.). It should also be noted that there is a current three (3) year funding agreement in place with the State Government for BRAG, whereby the City receives $170,000 per annum towards BRAG operations. This has been extended to 2020 and negotiations are currently underway with regard to future funding for BRAG from the State Government for beyond 2020.

The Director Corporate and Community Services and Manager Libraries and Cultural Development are currently in negotiations with the Art Gallery of Western Australia to bring a touring exhibition from the State Collection to Bunbury in the next year through their “Regional Exhibition Touring Boost” program.


13. Questions on Notice

13.1 Response to Previous Questions from Members taken on Notice Nil

13.2 Questions from Members

14. New Business of an Urgent Nature Introduced by Decision of the Meeting


15. Meeting Closed to Public

15.1 Matters for which the Meeting may be Closed 15.1.1 Confidential Report – Waste Collection Marketing and Financial Analysis


Responsible Officer: Aileen Clemens, Manager Waste Services

Responsible Manager: Aileen Clemens, Manager Waste Services

Executive: Gavin Harris, Director Works and Services



☐ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix CRUSC-2: Confidential Report Waste Collection Marketing and Financial Analysis

This report is confidential in accordance with section 5.23(2)(a) of the Local Government Act 1995, which permits the meeting to be closed to the public for business relating to the following: (e) a matter that if disclosed, would reveal —

(i) a trade secret; or (ii) information that has a commercial value to a person; or (iii) information about the business, professional, commercial or financial affairs of a

person, A confidential report and recommendation has been circulated to members under separate cover (Confidential Report CRUSC-2). The report is not for circulation.


15.1.2 Confidential Report – Land Acquisition Discovery Holiday Parks

File Ref: A04991

Applicant/Proponent: Discovery Holiday Parks

Responsible Officer: Kristen Mildwaters, Lands Officer

Responsible Manager: Felicity Anderson, Manager Economic Development & Lands

Executive: Gary Barbour, Director Planning and Development Services



☐ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix CRUSC-3: Confidential Report Land Acquisition Discovery Holiday Parks

This report is confidential in accordance with section 5.23(2)(a) of the Local Government Act 1995, which permits the meeting to be closed to the public for business relating to the following:

(c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting; and

A confidential report and recommendation has been circulated to members under separate cover (Confidential Report CRUSC-3). The report is not for circulation.

15.2 Public Reading of Resolutions that may be made Public

16. Closure

City of Bunbury 4 Stephen Street



Bunbury WA 6231


Appendices Council Meeting 13 November 2018

Appendix MTBN-1 Audit Committee Minutes 11 October 2018

Appendix RAC-1 Auditors Report and Annual Financial Statements 2018

Appendix CEO-1 Proposed 2019 Council Meeting Schedule

Appendic CEO-2 Information sheet on identified projects

Appendix DWS-1 Email Correspondence LGN

Appendix DWS-2 Strata Plan

Appendix Mon-1 BRAG Governance Review 2015

City of Bunbury 4 Stephen Street



Bunbury WA 6231


Audit Committee

Minutes 11 October 2018

Appendix MTBN-1

http://mydocs/sites/cp/Advisory%20Committee%20Meetings/CP-ACOMM-00009%20Audit%20Committee/www.bunbury.wa.gov.au

11 October 2018 Minutes – Audit Committee ______________________________________________________________________________

Audit Committee Terms of Reference The duties and responsibilities of the committee will be:

a) Provide guidance and assistance to Council as to the carrying out the functions of the local government in relation to audits and

matters related to financial management;

b) Meet with the auditor once in each year and provide a report to Council on the matters discussed and outcome of those discussions;

c) Liaise with the CEO to ensure that the local government does everything in its power to: - assist the auditor to conduct the audit and carry out his or her other duties under the Local Government Act

1995; and

- ensure that audits are conducted successfully and expeditiously; d) Examine the reports of the auditor after receiving a report from the CEO on the matters to:

- determine if any matters raised require action to be taken by the local government; and

- oversee the implementation of any action so determined in respect of those matters; e) Review the report prepared by the CEO on any actions taken in respect of any matters raised in the report of the auditor and

presenting the report to Council for adoption prior to the end of the next financial year or 6 months after the last report prepared by the auditor is received, whichever is the latest in time;

f) Review the scope of the internal audit plan and program and its effectiveness;

g) Review the appropriateness of special internal audit assignments undertaken by internal audit at the request of Council or the CEO;

h) Review the level of resources allocated to internal audit and the scope of its authority;

i) Review reports of internal audits, monitor the implementation of recommendations made by the audit and review the extent to which Council and management reacts to matters raised;

j) Facilitate liaison between the internal and external auditor to promote compatibility, to the extent appropriate, between their audit programs;

k) Review the local government’s draft annual financial report, focusing on: - accounting policies and practices;

- changes to accounting policies and practices;

- the process used in making significant accounting estimates;

- significant adjustments to the financial report (if any) arising from the audit process;

- compliance with accounting standards and other reporting requirements; and

- significant variances from prior years; l) Consider and recommend adoption of the annual financial report to Council. Review any significant changes that may arise

subsequent to any such recommendation but before the annual financial report is signed;

m) Address issues brought to the attention of the committee, including responding to requests from Council for advice that are within the parameters of the committee’s terms of reference;

n) Seek information or obtain expert advice through the CEO on matters of concern within the scope of the committee’s terms of reference following authorisation from the Council;

o) Review the annual Compliance Audit Return and report to the council the results of that review,

p) Having regard to the culture and capability of the organisation, consider the CEO’s reviews of the appropriateness and effectiveness of the local government’s systems and procedures in regard to risk management, internal control and legislative compliance, required to be provided to the committee, and report to the council the results of those reviews;

q) Monitor and advise the CEO when the CEO is carrying out functions in relation to a review of the appropriateness and effectiveness of the local government’s systems and procedures in regard to risk management, internal control and legislative compliance;

r) Oversee the implementation of any action required following receipt of the review of the appropriateness and effectiveness of the local government’s systems and procedures in regard to risk management, internal control and legislative compliance;

s) Monitor and advise the CEO when the CEO is carrying out functions in relation to a review of the appropriateness and effectiveness of the financial management systems and procedures;

t) Oversee the implementation of any action required following receipt of a review of the appropriateness and effectiveness of the financial management systems and procedures.


Minutes 11 October 2018

Members of the public to note that recommendations made by this committee are not final and will be subject to adoption (or otherwise) at a future meeting of the Bunbury City Council.

1. Declaration of Opening

The Presiding Member declared the meeting open at 11.00am.

2. Disclaimer Not applicable to this committee.

3. Announcements from the Presiding Member The Deputy Mayor welcomed Carly Meagher from OAG as well as Tim Partridge and Maria Cavallo from AMD to the meeting.

4. Attendances

Committee Members:

Member Name Representing

Cr Jaysen Miguel (Presiding Member) City of Bunbury

Cr Michelle Steck City of Bunbury

Mr Stephen Foster Community Member

Mr John Barratt Community Member

Support Staff/Visitors:

Name Title

Mr Greg Golinski Manager Governance

Mr Mal Osborne Chief Executive Officer

Mr David Ransom Manager Finance

Mrs Vicki Gregg Team Leader Financial Accounting

Carly Meagher Director Financial Audit, OAG

Tim Partridge Director, AMD

Maria Cavallo Director, AMD


4.1 Apologies Mayor Gary Brennan was an apology. 4.2 Approved Leave of Absence

Nil

5. Declaration of Interest

Nil

6. Public Question Time

Not applicable to this committee.

7. Confirmation of Minutes

Committee Decision: Moved: Mr Foster Seconded: Mr Barratt

The minutes of the Audit Committee Meeting held on 30 August 2018 are confirmed as a true and accurate record.

CARRIED 8. Presentations

The presentation by Carly Meagher, Tim Partridge and Maria Cavallo in relation to the City of Bunbury audit for the year ending 30 June 2018 was delivered as part of item 10.1 on this agenda.

9. Method of Dealing with Agenda Business

There was only 1 item of business being item 10.1 on the agenda.


10. Reports 10.1 Draft Auditors Report and Annual Financial Statements for the year ending 30 June 2018


Responsible Officer: David Ransom, Manager Finance

Responsible Manager: David Ransom, Manager Finance




☒ Legislative

☐ Review

☐ Quasi-Judicial


Attachments: Appendix 2: Draft Auditor’s Report and Annual Financial Report

Summary The draft Auditor’s Report and draft Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2018 are attached at Appendix 2 for the information of the Audit Committee. These reports are in ‘draft’ as Ms Carly Meagher, Director Financial Audit, from the Office of the Auditor General WA is required to meet with the Audit Committee prior to the signing of the Auditors Report. Ms Meagher will be attending this meeting to brief the Committee on the audit and to answer any questions. Following this meeting both the Auditors Report and Statement by the Chief Executive Officer will be signed and will then be presented to Council. There are no qualifications to the audit opinion; however the Auditor’s Report does note that the Asset Sustainability Ratio and Operating Surplus Ratio are below the Department of Local Government, Sport and Cultural Industries standard for the last 3 years. Executive Recommendation That the Audit Committee recommends that Council accept the Auditor’s Report and the Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2018. Background The Auditor General has audited the 2017/18 Annual Financial Report and have provided a draft Independent Auditor’s Report (refer Pages 70 - 72 in the attached Annual Financial Report) as required under the relevant provisions of the Local Government Act 1995 (the Act). The draft Auditor’s Report and Annual Financial Report are now presented to the Audit Committee for information. Furthermore, section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once in every year. Ms Carly Meagher, Director Financial Audit, from the Office of the Auditor General WA, who is representing the Auditor General will be in attendance to discuss with the Committee the audit and any queries arising from the 2017/18 Audit.


Council Policy Compliance N/A Legislative Compliance Section 7.9(1) of the Act requires the auditor to submit a report to the local government by 31 December each year. Section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once each year. Officer Comments The City’s management and internal control systems are sound. In addition to being monitored internally on a daily and monthly basis, they are also strengthened by an independent assessment each year on the City’s financial management systems and external audit reporting. The independent assessment reviews the City’s financial position, financial management practices and compliance with the requirements of the Act, the Local Government (Financial Management) Regulations, and Accounting Standards. There are five (5) primary financial statements:

- Statement of Comprehensive Income

- Statement of Financial Position

- Statement of Changes in Equity

- Statement of Cash Flows

- Rate Setting Statement

Statement of Comprehensive Income: The Statement of Comprehensive Income (shown on pages 3 to 5 of the Financial Report) shows the extent to which operating expenditure has exceeded operating income during the financial year (i.e. operating deficit). Key financial figures within the audited Annual Financial Report for the year ended 30 June 2018 include: 2018 2017 Operating Revenue $ 56,243,651 $ 56,515,216 Operating Expenses $ 58,023,133 $ 55,739,045 Operating Surplus / (Deficit) $ (1,779,481) $ 776,171 Net Result $ 6,459,257 $ 3,840,772 For the year ending 30 June 2018, the operating deficit was $1.78M compared to an operating surplus of $776K in 2016/17, a decrease of $2.55M. Revenue decreased by $271K and expenditure increased by $2.28M.


Operating Revenue –The City received $271K less in 2017/18 than in 2016/17. This was mainly due to receiving less Operating Grants & Subsidies ($725K), Contributions, Reimbursement & Donations ($207K) and Fees & Charges ($1.12M); which was partially offset by receiving more in Rates ($1.57M) and Interest Earnings ($221K). Note: Operating Grants were greater in 2016/17 due to receiving an advance payment for 2017/18 of $821K, and Fees and Charges were down in 2017/18 mainly due to lower Parking Fee income of $1.07M. Operating Expenditure – The increase in operating expenditure of $2.28M from the previous year was mainly due to an increase in expenditure of Employee Costs ($552K), Depreciation on Non-Current Assets ($1.12M) and Materials and Contract ($645K). While offset by a reduction in the following expenditure: Consultants ($144K), Insurance ($119K) and Interest Expenses ($65K). Net Result - When Capital Grants ($6.90M) and the Net Profit on Asset Disposal ($1.49M) etc. are included, the Net Result was a surplus of $6.46M. This compares to a surplus of $3.84M in 2016/17. The Statement also accounts for the Changes on Revaluation of Non-Current assets which was a decrease of $2.18M in 2017/18 resulting in Total Comprehensive Income for 2017/18 of $4.28M. Statement of Financial Position: The Statement of Financial Position (shown on page 6 of the Financial Report) shows the assets and liabilities which make up the community equity as at the 30 June 2018. Key financial figures within the Annual Financial Report for the year ended 30 June 2018 include: 2017 2017 Current Assets $ 39,244,271 $ 45,864,990 Current Liabilities $ 10,371,209 $ 10,330,650 Current Assets over Current Liabilities $ 28,873,062 $ 35,534,340 Non-Current Assets $ 577,992,363 $ 567,260,965 Non-Current Liabilities $ 13,431,449 $ 13,638,280 Total Equity $ 593,433,975 $ 589,157,025 The City’s Current Assets exceed Current Liabilities by $28.87M compared to $35.53M in 2016/17, a decrease of $6.66M. This is mainly due to a decrease in Unspent Grants of $11.50M used for the Koombana Bay Foreshore expansion and upgrade, and a decrease in the following cash backed reserves: Asset Management and Renewal ($2.36M), and Depot Construction ($2.28M). This was offset by an increase in the General Parking reserve of $6.23M mainly from the sale proceeds of the Cornwall Street Car Park; and an increase in the Building Restoration and Maintenance reserve of $2.18M. These changes together with a decrease in the Revaluation Surplus of $2.18M (from the Revaluation of Non-Current Assets), increased the total community equity at 30 June 2018 by $4.28M to $593.43M. Statement of Changes in Equity: The Statement of Changes in Equity (shown on page 7 of the Financial Report) shows the extent to which the community equity has been increased by the net result of the year’s activities. For the year ending 30 June 2018, the Community Equity increased from $589.15M to $593.43M, an increase of $4.28M.


Statement of Cash Flows: The Statement of Cash Flows (shown on page 8 of the Financial Report) shows the nature and amount of City’s cash inflows and out flows from all activities. The City’s cash held at the end of the reporting period was $36.31M compared to $42.55M in 2016/17. Rate Setting Statement: The Rate Setting Statement (shown on pages 9 and 10 of the Financial Report) shows the amount of rates required to be raised to fund the City’s operations during 2017/18. In 2017/18 $37.18M in rates were raised, an increase of $1.57M or 4.4% on 2016/17. Financial Information by Ratio: 2018 2017 2016 Current Ratio 1.297 1.246 1.111 Current Assets as a ratio of Current Liabilities. (Measure of short term liquidity, i.e. the ability of the City to meet its liabilities when they fall due. A ratio of greater than 1.0 indicates the City has more current assets than current liabilities. The Department of Local Government indicates that the standard is met if the ratio is greater than 1.00). Asset Sustainability Ratio 0.707 0.643 0.524 Capital renewal and replacement expenditure as a ratio of depreciation expense. (Measures the extent to which assets are being renewed/replaced compared to the amount consumed i.e. depreciation. The Department of Local Government indicates that the standard is met if the ratio is greater than 0.90, and is improving if the ratio is between 0.90 and 1.10. To improve this ratio the City will need to allocate more capital expenditure on the renewal or upgrade of existing assets). Asset Consumption Ratio 0.601 0.621 0.620 Depreciated replacement costs of assets as a ratio of current replacement costs of depreciable assets. (Measures the extent to which depreciable assets have been consumed by comparing their written down value to their replacement cost. The Department of Local Government indicates that the standard is met if the ratio is greater than 0.50, and is improving if the ratio is between 0.60 and 0.75). Asset Renewal Funding Ratio 0.943 0.743 0.748 NPV of planning renewal over 10 years as a ratio of NPV of required capital expenditure over 10 years. (Measures the ability of a local government to fund its projected asset renewal / replacements in the future. The Department of Local Government indicates that the standard is met if the ratio is between 0.75 and 0.95). Debt Service Cover Ratio 3.592* 4.492 3.287 Operating Surplus before Interest and Depreciation as a ratio of principal and interest expense for borrowings. (Measures the City’s ability to service debt out of its uncommitted or general purpose funds available for its operations. The Department of Local Government indicates that a Basic standard is achieved if ≥ 2.0. An Advanced standard is ≥ 5.0).


*Note: The Debt Service Cover Ratio is distorted in the 2018 Financial Year as the City received an early repayment of a self-supporting loan from DFES. If this was ignored, the calculation disclosed in the 2018 column above would be 4.891 Operating Surplus Ratio (0.009) (0.005) (0.066) Operating Revenue minus Operating Expenditure as a ratio of own source operating revenue. (A result of lower than zero indicates that the City has an operating deficit. The Department of Local Government indicates that a Basic standard is achieved if the ratio is greater than zero. To improve this ratio the City needs to either reduce operating expenditure and/or increase operating revenue. Note: A significant operating expense is depreciation which was $14.2M in 2017/18. This expenditure is currently being reviewed to ensure that this is not overstated). Own Source Revenue Coverage Ratio 0.953 0.948 0.948 Own source operating revenue as a ratio of operating expense. (Measures the City’s ability to cover operating expenses from own source revenue. The higher the ratio, the more self-reliant the local government is. The Department of Local Government indicates that an Advanced standard is achieved if the ratio is greater than 0.9). Analysis of Financial and Budget Implications There are no financial or budget implications for the Council to accept the Annual Financial Statements and draft Auditor’s Report. Community Consultation An abridged Annual Financial Report will be included in the City’s 2017/18 Annual Report. Outcome of Meeting – 11 October 2018 Carly Meagher from OAG and Tim Partridge and Maria Cavallo from AMD provided the committee with a general overview of the outcomes of the City’s 2017/18 audit, and answered general questions from the Committee. Mr Partridge noted that all issues raised in the OAG interim management letter dated 31 July 2018 had been actioned, and that no issues were identified as part of the year end audit. Whilst there are no qualifications to the audit opinion, Mr Partridge did note that the Asset Sustainability and Operating Surplus ratios were below the standard set by the Department of Local Government, Sport and Cultural Industries. As ratios are only a snapshot at a particular point in time, Mr Partridge did emphasise that the long-term trending of ratios is a more appropriate measure, a point agreed to by Ms Meagher. The City’s trend for these ratios is improving. Ms Meagher also noted that no local government that OAG have audited has had an Operating Surplus ratio that met the standards set by the Department, and this was a benchmark that may need to be looked at.


The executive recommendation was moved by Mr Foster and was seconded by Mr Barratt and was carried unanimously as follows: That the Audit Committee recommends that Council accept the Auditor’s Report and the Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2018.


11. Questions from Members

11.1 Response to Previous Questions from Members taken on Notice

Nil

11.2 Committee Discussion and Questions from Members Nil

12. Urgent Business Nil

13. Date of Next Meeting TBA

14. Close of Meeting The Presiding Member closed the meeting at 11.35am.

These minutes were confirmed as a true and accurate record by

the Audit Committee at its meeting held on ________________

Signed: ____________________

Cr Jaysen Miguel - Chair

ANNUAL FINANCIAL

REPORT for the year ended 30 June 2018

Appendix RAC-1

Members and Executives 1

Statement by Chief Executive Officer 2

Statement of Comprehensive Income by Nature and Type 3

Statement of Comprehensive Income by Program 4

Statement of Financial Position 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Rate Setting Statement 9

Notes to and forming part of the Financial Report

1. Basis of Preparation 11

2. Revenue and Expenses 12

12

12

12

13

13

16

19

19

(i) Significant Revenue

(ii) Contributions, Reimbursements and Donations

(iii) Fees and Charges

(iv) Interest Earnings

(v) Grant Revenue

(vi) Conditions over Grants/Contributions

(vii) Auditors Remuneration

(viii) Interest Expense

(ix) Rental Charges 19

3. Cash and Cash Equivalents 20

4. Investments 21

5. Trade and Other Receivables 21

6. Inventories 22

7. Property, Plant and Equipment 23

8. Infrastructure 27

9. Fixed Assets 31

10. Total Assets Classified by Function and Activity 33

11. Trade and Other Payables 34

12. Information on Borrowings 35

13. Provisions 39

14. Reserves - Cash Backed 40

15. Asset Revaluation Surplus 46

16. Notes to the Statement of Cash Flows 48

17. Contingent Liabilities 4818. Capital and Leasing Commitments 49

19. Joint Venture Arrangements 50

20. Related Party Transactions 52

21. Major Land Transactions 53

22. Trading Undertakings and Major Trading Undertakings 53

23. Rating Information 54

24. Specified Area Rates 55

25. Service Charges 55

26. Discounts, Incentives, Concessions and Write Offs 55

27. Interest Charges and Instalments 56

CITY OF BUNBURY

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2018

TABLE OF CONTENTS

28. Net Current Assets 57

29. Employee Information 58

30. Financial Risk Management 59

31. Trust Funds 63

32. New Accounting Standards 64

33. Siginificant Accounting Policies 66

34. Activitues/Programs 68

35. Financial Ratios 69

Independent Audit Report 70

FINANCIAL REPORT


TABLE OF CONTENTS

CITY OF BUNBURY

MEMBERS AND EXECUTIVES


CITY OF BUNBURYAdministration Offices

4 Stephen Street, Bunbury WA 6230

Telephone (08) 9792 7000, Facsimile (08) 9792 7184, TTY 133 677 www.bunbury.wa.gov.au

MAYORGary Brennan

COUNCILLORSCr Jaysen De San Miguel (Deputy Mayor)

Cr Todd BrownCr Murray Cook

Cr James HaywardCr Brendan KellyCr Sam Morris

Cr Tresslyn SmithCr Sam Morris

Cr Michelle SteckCr Karen Steele

Cr Monique Warnock

CHIEF EXECUTIVE OFFICER

Malcolm Osborne

DIRECTOR OF CORPORATE AND COMMUNITY SERVICES

Stephanie Addison‐Brown

ACTING DIRECTOR OF PLANNING AND DEVELOPMENT SERVICES

Felicity Anderson

DIRECTOR OF WORKS AND SERVICES

Gavin Harris

Page 1

Signed on the 11 day of October 2018

MJ (Mal) OsborneChief Executive Officer

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the City of Bunbury for the financial year ended 30 June 2018 is based onproper accounts and records to present fairly the financial position of the City of Bunbury at 30 June 2018and the results of the operations for the financial year then ended in accordance with the Local Government

Act 1995 and, to the extent that they are not inconsistent with the Act, the Australian Accounting Standards.

CITY OF BUNBURYFINANCIAL REPORT


LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

Page 2

NOTE 2018 2018 2017Actual Budget Actual

$ $ $RevenueRates 23 37,226,931 37,269,621 35,659,229 Operating Grants and Subsidies 2(v) 2,671,269 1,746,831 3,396,342 Contributions, Reimbursements and Donations 2(ii) 1,103,518 1,228,687 1,310,330 Fees and Charges 2(iii) 13,422,073 12,977,384 14,547,774 Interest Earnings 2(iv) 1,475,751 1,390,741 1,254,261 Other Revenue 344,109 331,863 347,280

56,243,651 54,945,127 56,515,216

ExpensesEmployee Costs (24,198,556) (25,440,611) (23,646,392)Consultants (1,113,491) (1,981,749) (1,257,705)Materials and Contracts (12,062,687) (14,829,626) (11,418,065)Utility Charges (2,624,127) (2,945,905) (2,596,944)Depreciation on Non‐Current Assets 9(b) (14,225,341) (13,151,843) (13,110,288)Insurance Expenses (539,282) (543,221) (727,918)Interest Expenses 2(viii) (716,877) (724,343) (781,453)Other Expenditure (2,542,772) (2,966,265) (2,200,280)

(58,023,133) (62,583,563) (55,739,045)(1,779,481) (7,638,436) 776,171

Non‐Operating Grants, Subsidies and 2(v) 6,902,721 4,710,469 3,923,222 2(iv) 82,493 ‐ 202,8028(b) (241,175) ‐ ‐9(a) 5,809,523 6,026,197 261,175

ContributionsInterest on Capital GrantsImpairment Loss on Civil Infrastructure Profit on Asset DisposalsLoss on Asset Disposals 9(a) (4,314,823) ‐ (1,322,600)

NET RESULT 6,459,257 3,098,230 3,840,771

Other Comprehensive Income

Items that will not be reclassified subsequently to profit or loss

Changes on Revaluation of Non‐Current Assets 15 (2,182,305) ‐ 11,764,565

Total Other Comprehensive Income (2,182,305) ‐ 11,764,565

Total Comprehensive Income 4,276,951 3,098,230 15,605,336

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

CITY OF BUNBURY

STATEMENT OF COMPREHENSIVE INCOME

BY NATURE AND TYPE


Page 3


$ $ $Revenue 2, 34General Purpose Funding 39,627,652 38,800,601 39,069,834 Governance 1,170,553 1,060,482 959,911 Law, Order, Public Safety 739,931 750,423 368,218 Health 453,536 421,891 464,388 Education and Welfare 2,148 3,553 28,768 Community Amenities 6,275,219 6,190,083 6,427,325 Recreation and Culture 5,025,666 4,574,318 5,087,987 Transport 720,030 756,384 2,143,161 Economic Services 409,504 423,761 393,446 Other Property and Services 1,819,412 1,963,631 1,572,177

56,243,651 54,945,127 56,515,216

Expenses 2, 34General Purpose Funding (870,578) (1,198,694) (1,130,366)Governance (4,639,580) (3,358,454) (3,718,906)Law, Order, Public Safety (1,944,697) (1,959,966) (1,278,987)Health (1,160,378) (1,101,773) (1,039,976)Education and Welfare (348,294) (425,172) (360,945)Community Amenities (8,236,398) (8,849,529) (7,306,725)Recreation and Culture (16,655,295) (15,914,934) (13,878,222)Transport (6,828,957) (7,008,617) (7,370,343)Economic Services (1,207,039) (1,329,354) (982,709)Other Property and Services (15,415,041) (20,712,727) (17,890,413)

(57,306,255) (61,859,220) (54,957,592)

Finance Costs 2(viii)Law, Order, Public Safety (44,523) (48,622) (51,077)Community Amenities (60,148) (58,554) (67,627)Recreation and Culture (278,578) (248,129) (312,490)Transport (158,294) (163,274) (162,994)Other Property and Services (175,334) (205,764) (187,265)

(716,877) (724,343) (781,453)

Non‐Operating Grants, Subsidies and

Contributions 2(v)Law, Order, Public Safety 30,257 ‐ 346,731 Education and Welfare 34,121 50,000 ‐Community Amenities ‐ ‐ 334,074 Recreation and Culture 888,495 1,893,495 233,997 Transport 2,782,341 2,732,853 3,139,087 Economic Services ‐ 34,121 ‐Other Property and Services 3,250,000 ‐ 72,135

6,985,214 4,710,469 4,126,023


CITY OF BUNBURY


BY PROGRAM


Page 4


$ $ $9(a) 5,809,523 6,026,197 261,175 9(a) (4,314,823) ‐ (1,322,600)

Profit on Disposal of AssetsLoss on Disposal of Assets Impairment Loss on Civil Infrastructure 8(b) (241,175) ‐ ‐

1,253,525 6,026,197 (1,061,425)

NET RESULT 6,459,257 3,098,230 3,840,771

Other Comprehensive Income

Items that will not be reclassified subsequently to profit or loss

Changes on revaluation of non‐current assets 15 (2,182,305) ‐ 11,764,565

Total Other Comprehensive Income (2,182,305) ‐ 11,764,565

Total Comprehensive Income 4,276,951 3,098,230 15,605,336


BY PROGRAM


CITY OF BUNBURY

Page 5

NOTE 2018 2017$ $

CURRENT ASSETS

Cash and Cash Equivalents ‐ Unrestricted 3 9,237,142 8,333,253 Cash and Cash Equivalents ‐ Restricted 3 27,077,985 34,213,094 Trade and Other Receivables 5 2,867,153 3,262,302 Inventories 6 61,991 56,340 TOTAL CURRENT ASSETS 39,244,271 45,864,990

NON‐CURRENT ASSETS

Other Receivables 5 583,310 1,672,344 Property, Plant and Equipment 7 259,641,592 252,458,830 Infrastructure 8 317,767,461 313,129,791 TOTAL NON‐CURRENT ASSETS 577,992,363 567,260,965

TOTAL ASSETS 617,236,634 613,125,955

CURRENT LIABILITIES

Trade and Other Payables 11 4,316,837 4,459,427 Current Portion of Long term Borrowings 12 2,210,963 2,223,631 Provisions 13 3,843,409 3,647,593 TOTAL CURRENT LIABILITIES 10,371,209 10,330,650

NON‐CURRENT LIABILITIES

Other Payables 11 12,893 16,666 Long Term Borrowings 12 12,893,639 13,172,095 Provisions 13 524,917 449,519 TOTAL NON‐CURRENT LIABILITIES 13,431,449 13,638,280

TOTAL LIABILITIES 23,802,658 23,968,931

NET ASSETS 593,433,975 589,157,025

EQUITYRetained Surplus 230,558,176 228,538,249 Reserves ‐ Cash Backed 14 25,687,046 21,247,715 Revaluation Surplus 15 337,188,753 339,371,059 TOTAL EQUITY 593,433,975 589,157,025


CITY OF BUNBURY

STATEMENT OF FINANCIAL POSITION


Page 6

NOTERETAINED

SURPLUSRESERVES CASH

BACKEDREVALUATION

SURPLUSTOTAL

EQUITY$ $ $ $

Balance as at 1 July 2016 229,413,598 16,531,596 327,606,494 573,551,687

Comprehensive Income Net Result 3,840,771 ‐ ‐ 3,840,771 Changes on Revaluation of Non‐Current Assets 15 ‐ ‐ 11,764,565 11,764,565

Total Comprehensive Income 3,840,771 ‐ 11,764,565 15,605,336

Transfers from/(to) Reserves 14 (4,716,120) 4,716,120 ‐ ‐

Balance as at 30 June 2017 228,538,249 21,247,715 339,371,059 589,157,023

Comprehensive Income Net Result 6,459,257 ‐ ‐ 6,459,257 Changes on Revaluation of Non‐Current Assets 15 ‐ ‐ (2,182,305) (2,182,305)

Total Comprehensive Income 6,459,257 ‐ (2,182,305) 4,276,951

Transfers from/(to) Reserves 14 (4,439,331) 4,439,331 ‐ ‐

Balance as at 30 June 2018 230,558,176 25,687,046 337,188,753 593,433,975


CITY OF BUNBURYSTATEMENT OF CHANGES IN EQUITY


Page 7


$ $ $

Cash Flows from Operating Activities

Receipts

Rates 37,038,708 37,269,621 35,584,486 Operating Grants & Subsidies 2,936,454 1,746,831 3,159,027 Contributions, Reimbursements and 1,103,518 1,228,687 1,310,330 DonationsFees and Charges 13,588,301 12,997,384 14,857,288 Interest Earnings 1,475,751 1,390,741 1,254,261 Other Revenue 344,109 331,863 347,280

56,486,841 54,965,127 56,512,672 PaymentsEmployee Costs (23,920,186) (24,902,278) (23,352,024)Consultants (1,113,491) (1,981,749) (1,257,705)Materials and Contracts (12,172,161) (14,829,626) (11,044,051)Utility Charges (2,624,127) (2,945,905) (2,596,944)Interest Expenses (722,736) (724,343) (791,323)Insurance Expenses (539,282) (543,221) (727,918)Goods and Services Tax (84,269) ‐ (1,210,686)Other Expenditure (2,546,544) (2,966,265) (2,199,648)

(43,722,795) (48,893,387) (43,180,299)Net Cash Provided by (Used In)

Operating Activities 16(b) 12,764,046 6,071,740 13,332,373

Cash Flows from Investing Activities

Payments for Purchase ofProperty, Plant and Equipment (13,225,041) (16,853,937) (6,011,978)

Payment for Construction of Infrastructure (20,759,743) (23,061,258) (8,234,179)

Non‐Operating Grants,Subsidies and Contributions 6,902,721 4,710,469 3,923,222

Interest Earning on Capital Grants 82,493 ‐ 202,802 Proceeds from Sale of Fixed Assets 7,010,230 7,340,320 1,060,736 Net Cash Provided by (Used in)

Investing Activities (19,989,341) (27,864,406) (9,059,396)

Cash Flows from Financing Activities

Repayments of Debentures (3,291,123) (3,418,956) (2,237,766)Proceeds from Self Supporting Loans 1,267,156 1,265,743 117,528 Proceeds from New Debentures 3,000,000 4,900,000 1,353,000 Repayments ‐ Deferred Debtors 18,042 ‐ 18,497 Net Cash Provided by (Used in)

Financing Activities 994,075 2,746,787 (748,742)

Net Increase (Decrease) in Cash Held (6,231,220) (19,045,879) 3,524,235 Cash at Beginning of Year 42,546,347 42,546,347 39,022,112 Cash and Cash Equivalents

at the End of the Year 16(a) 36,315,127 23,500,468 42,546,347


CITY OF BUNBURY

STATEMENT OF CASH FLOWS


Page 8

2018 2018 2017NOTE Actual Budget Actual

$ $ $Net current assets at start of financial year

‐ surplus/(deficit) 28 3,332,322 3,332,322 2,321,428 3,332,322 3,332,322 2,321,428

Revenue from operating activities (excluding rates)

Specified Area Rates 24 45,768 46,014 44,076 Operating Grants and Subsidies 2(v) 2,671,269 1,746,831 3,396,342 Contributions, Reimbursements and Donations 2(ii) 1,103,518 1,228,687 1,310,330 Fees and Charges 2(iii) 13,422,073 12,977,384 14,547,774 Interest Earnings 2(iv) 1,475,751 1,390,741 1,254,261 Other Revenue 344,109 331,863 347,280 Profit on Disposal of Assets 9(a) 5,809,523 6,026,197 261,175

24,872,011 23,747,717 21,161,238 Expenses from operating activities

Employee Costs (24,198,556) (25,440,611) (23,646,392)Consultants (1,113,491) (1,981,749) (1,257,705)Materials and Contracts (12,062,687) (14,829,626) (11,418,065)Utility Charges (2,624,127) (2,945,905) (2,596,944)Depreciation on Non‐Current Assets 9(b) (14,225,341) (13,151,843) (13,110,288)Insurance Expenses (539,282) (543,221) (727,918)Interest Expenses (716,877) (724,343) (781,453)Other Expenses (2,542,772) (2,966,265) (2,200,280)Loss on Disposal of Assets 9(a) (4,314,823) ‐ (1,322,600)

(62,337,955) (62,583,563) (57,061,644)

Net Result Excluding Rates (37,465,944) (38,835,846) (35,900,406)

Adjustments for Cash Budget Requirements:

Non‐Cash Expenditure and Revenue

(Profit)/Loss of Asset Disposals 9(a) (1,494,700) (6,026,197) 1,061,425 Depreciation and Amortisation on Assets 9(b) 14,225,341 13,151,843 13,110,288

Transfers Between Current and Non Current

Movement in Deferred Pensioner Rates (Non‐Current) 5 (8,908) ‐ (12,271)Movement in Deferred Sundry Debtors 5 25,808 ‐ 18,497Movement in Self‐Support Loans ‐ ‐ (80,000)Movement in Employee Benefit Provisions (Non‐Current) 13 75,398 62,100 21,651Movement in College Grove Joint Venture (North) 19 (3,773) ‐ 632

CapitalCapital Revenue

Proceeds from Disposal of Assets 9 7,010,230 7,340,320 1,060,736 Contributions for the Development of Assets 2(v) 6,902,721 4,710,469 3,923,222 Proceeds from New Loans 12 3,000,000 4,900,000 1,353,000 Self‐Supporting Loan Principal Income 1,267,156 1,265,743 197,528 Interest on Capital Grants 2(iv) 82,493 ‐ 202,802

18,262,599 18,216,532 6,737,288


CITY OF BUNBURY

RATE SETTING STATEMENT


Page 9

2018 2018 2017NOTE Actual Budget Actual

$ $ $Capital Expenditure

Purchase Land 7(b) (3,254,480) (69,869) (2,541,709)Purchase Buildings 7(b) (7,671,821) (11,825,330) (1,338,958)Purchase Plant and Vehicles 7(b) (1,108,298) (3,268,802) (781,852)Purchase Equipment 7(b) (1,125,311) (1,436,097) (1,257,765)Purchase Furniture and Fittings 7(b) (46,561) (117,314) (67,890)Purchase Arts and Culture Assets 7(b) (18,571) (136,525) (23,804)Purchase Infrastructure Assets 8(b) (20,759,743) (23,061,258) (8,234,179)Repayment of Loans 12 (3,291,124) (3,418,956) (2,237,766)

(37,275,908) (43,334,151) (16,483,923)Financial Transfers

Movement in Unspent Loans 12(c) 57,441 57,441 (57,441)Movement in Unspent Grants 2(iv) 11,516,999 12,520,458 1,696,122Transfers to Reserves (Restricted Assets) 14 (15,421,986) (15,561,558) (15,828,906)Transfers from Reserves (Restricted Assets) 14 10,982,655 19,424,191 11,112,786

Surplus(deficiency) before general rates (33,192,655) (36,992,865) (32,282,831)Total Amount Raised From General Rates 23 37,181,163 37,223,607 35,615,153 Net Current Assets as June 30 c/fwd ‐ surplus (deficit) 28 3,988,508 230,742 3,332,322


CITY OF BUNBURY

RATE SETTING STATEMENT

Page 10

1. BASIS OF PREPARATION

CRITICAL ACCOUNTING ESTIMATES (Continued)

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

THE LOCAL GOVERNMENT REPORTING ENTITY

All funds through which the City controls resources to carry on its functions have been included in the financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balances between those Funds (for example, loans and transfers between Funds) have been eliminated.

Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non‐current assets, financial assets and liabilities.

CRITICAL ACCOUNTING ESTIMATES

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses.

The financial report comprises general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not‐for‐profit entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Accounting policies which have been adopted in the preparation of this financial report have been consistently applied unless stated otherwise.

CITY OF BUNBURY

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT


All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those monies appears at Note 31 to these financial statements.

Page 11

2. REVENUE AND EXPENSES2018 2017

$ $

(i) Significant Revenue

Operating Grant Income 827,877 821,031 Non‐Operating Grant Income 3,250,000 ‐

4,077,877 821,031

Operating Grant Income

Non‐Operating Grant Income

(ii) Contributions, Reimbursements and Donations

Reimbursements and Recoveries 826,081 1,047,530 Contributions and Donations 277,437 262,800

1,103,518 1,310,330

(iii) Fees and ChargesGeneral Purpose 144,058 143,844 Governance 100,100 84,039Law, Order, Public Safety 483,903 270,526 Health 443,533 455,366 Education and Welfare 2,148 8,653Community Amenities 5,942,489 6,054,881 Recreation and Culture 4,474,717 4,439,018 Transport 644,004 1,927,094 Economic Services 277,126 270,653 Other Property and Services 909,995 893,700

13,422,073 14,547,774

CITY OF BUNBURY



This significant revenue in 2016/17 relates to the Federal Assistance Grant Scheme payments received inadvance for the 2017/18 Financial Year of $821,031.

There were no changes during the year to the amount of fees or charges detailed in the original budget.

This significant revenue in 2017/18 relates to the Federal Assistance Grant Scheme payments received in advance for the 2018/19 Financial Year of $827,877

This significant revenue in 2017/18 relates to the transfer of Lot 330 Ocean Drive to the City from the Department of Primary Industries and Regional Development for compensation for the College Grove Joint Venture agreement.

Page 12

2. REVENUE AND EXPENSES (Continued)

(iv) Interest Earnings 2018 2018 2017Actual Budget Actual

$ $ $Interest Earnings ‐ Operating

‐ Reserve Funds 13,592 850 13,615‐ General Funds 1,043,806 1,012,858 826,932 ‐ Other Interest Revenue (refer Note 27) 418,354 377,033 413,714

1,475,751 1,390,741 1,254,261

Interest Earnings ‐ Non‐Operating

82,493 ‐ 202,802 82,493 ‐ 202,802

‐ Investments ‐ Capital Grants

CITY OF BUNBURY



Page 13

(v) Grant Revenue

2018 2017$ $

2,671,269 3,396,342 6,985,214 3,923,222

9,656,483 7,319,564

663,710 1,045,486141,354 423,127164,852 521,126560,766 528,221

3,877,401 4,654,74079,111 27,849

By Program:

General Purpose FundingLaw, Order, Public SafetyCommunity AmenitiesRecreation and CultureTransportEconomic ServicesOther Property and Services 4,169,289 119,015

9,656,483 7,319,564

By Nature or Type:

Operating Grants, Subsidies and ContributionsNon‐Operating Grants, Subsidies, Contributions and Capital Interest

Grants, subsidies, contributions and capital interest are included as operating revenues in the Statement of Comprehensive Income:

2. REVENUES AND EXPENSES (Continued)

(v) Grant Revenue

Grants and Contributions for the Development of Assets Received from: 2018 2017$ $

Capital Grants

Department of Lands and Heritage College Grove South JV Compensation 3,250,000 ‐ Dept. Infrastructure & Regional Dev Roads to Recovery reseal program 758,903 ‐ Lotterywest Construct new playground, Koombana Bay 599,825 ‐ Main Roads Upgrade intersection of Parade Rd / Knight St 504,514 Main Roads Realign and widen Ocean Drive 502,729 ‐ Main Roads Upgrade Parade Road bus stop 168,279 ‐ Dept. Infrastructure & Regional Dev Edward Street road and drainage modifications 152,016 35,654 Main Roads Reseal Old Coast Rd, Pelican Point 141,242 ‐ City of Bunbury Surf Life Saving Club Construct accessible ramp at Back Beach 110,000 ‐ South West Development Commission Upgrade Kelly Park Playground 90,000 ‐ Main Roads Renew Parade Road 84,819 49,176 Dept. Transport Upgrade and widen Jetty Road 80,000 ‐ Dept. Fire & Emergency Services Construct helipad at Bunbury Airport 79,812 ‐ Main Roads Install pedestrian refuge Spencer Street 75,362 ‐ Dept. Infrastructure & Regional Dev Upgrade Spencer / Cornwall Sts intersection 43,584 ‐ Bunbury Yacht Club Raise the Koombana footbridge 36,364 ‐ Tourism Western Australia Implement Visitor Centre Upgrades 34,121 ‐ Dept. Fire & Emergency Services Construct trailer shed for SES 30,256 ‐ WA Local Government Koombana Foreshore Redevelopment 30,000 70,000 Main Roads Improve City's Landscaping, Parks, Gardens 30,000 ‐ South West Catchments Council Renew landscaping/irrigation Queens Gardens 28,670 ‐ Airservices Australia Installation of Airport Weather Camera 24,131 ‐ Dept. Infrastructure & Regional Dev Install traffic management devices 23,691 ‐ Developer Contributions Renew and upgrade path network 17,763 46,015 Dept. Infrastructure & Regional Dev Hotspot street lighting 6,639 20,000 Main Roads Reconstruct and widen Koombana Drive ‐ 1,600,000 Dept. Infrastructure & Regional Dev Reconstruct and widen Koombana Drive ‐ 714,367 Main Roads Upgrade Parade Rd/Crampton Ave intersection ‐ 360,830 West Australian Police Implement State CCTV Strategy program ‐ 336,802 Dept. Culture and the Arts Bunbury Regional Entertainment capital works ‐ 334,074 Dept. Transport Expand cycleways ‐ 156,310 Main Roads Upgrade Koombana Dve/Austral Pde intersection ‐ 92,272 Shire of Capel Expand cycleways ‐ 37,785 Dept. Sport & Recreation Renew and revitalise SWSC pool ‐ 21,195 SW Catchment Council Reconstruct and widen Koombana Drive ‐ 20,000 Bunbury Forum Shopping Centre Install dingo enclosure at Bunbury Wildlife Park ‐ 10,000 Bunbury Water Corporation Disposal of portion of Lot 200 Robinson Drive ‐ 9,929 Public Transport Authority of WA Network expansion for public transport ‐ 3,396 Stabilised Pavements of Australia Recycle and reseal Palmer Crescent ‐ 3,281 Dept. Finance Koombana Foreshore Redevelopment ‐ 2,136

6,902,720 3,923,222

CITY OF BUNBURY



Page 14

2. REVENUES AND EXPENSES (Continued)

(v) Grant Revenue

2018 2017$ $

WA Government ‐ Grants Commission Receive general purpose grants ‐ roads 867,189 1,295,657 WA Government ‐ Grants Commission Receive general purpose grants ‐ general 663,710 1,045,486 Art Gallery of Western Australia Operate Bunbury Regional Art Gallery 170,000 170,000 Dept. Environment Regulations Better Bins Kerbside Collection program 164,852 164,852 Dept. Local Government Design plans for Hay Park Sporting Precinct 150,000 ‐ Main Roads Receive general purpose grants ‐ roads 116,439 200,607 Dept. Sport & Recreation Deliver KidSport project 92,096 80,670 Dept. Community and the Arts Indigenous Arts Program 80,000 ‐ Dept. Fire & Emergency Services Administer Bushfire Brigade payments 51,935 37,417 Dept. Fire & Emergency Services Administer State Emergency Service payments 47,163 34,554 Dept. Sport & Recreation Deliver Club Development program 40,000 50,000 Water Corporation Deliver outcomes from Greener City Strategy 40,000 ‐ LotteryWest Conduct Australia Day event 30,000 30,000 Tourism Western Australia Implement Bunbury‐Geographe Tourism Brand 24,990 ‐ Public Transport Authority Maintain bus shelters 22,932 17,468 Dept. Education Provide traineeships and cadetships 21,400 2,500 South West Development Commission Develop Regional Tourism Strategy infrastructure 20,000 20,000 Dept. L/Government & Communities Implement Early Years Strategy 20,000 ‐ Healthways Deliver SHIFT 2018 Youth Festival 15,000 ‐ Dept. Transport Bunbury Airport Master Plan 14,863 ‐ Office of Emergency Management Safer Communities Network 12,000 ‐ Dept. L/Government & Communities Youth Development Scholarship 6,700 6,130 Dept. Sport and Recreation Deliver SiliverSport Funding ‐ 135,000 Road Safety Commission Roadwise 'M8 the call can W8' campaign ‐ 27,850 Dept. Agriculture and Food Implement Wattle control program ‐ 22,200 Dept. Sport & Recreation Renew and revitalise SWSC ‐ 10,805 Dept. L/Government & Communities Undertake Equal Employment Opportunity training ‐ 10,000 South West Development Commission Noongar Arts Strategy ‐ 10,000 State Heritage Office Coordinate heritage advisory service ‐ 9,451 Tourism Western Australia Implement Tourism WA free Wi‐Fi project ‐ 7,849 Dept. L/Government & Communities Bunbury Community Garden seating and fencing ‐ 4,424 Main Roads WA Install traffic control signals Sandridge/Pennant ‐ 1,922 Museum & Galleries of NSW "People Like Us" public program ‐ 1,100 Dept. Transport Bike Week program ‐ 400

2,671,269 3,396,342

NOTE

General Purpose Grants ‐ Roads and General

In 2016/17 the City received a general purpose grant advance payment for the 2017/18 financial year of $821,031.

Operating Grants Received from:

In 2017/18 the City received a general purpose grant advance payment for the 2018/19 financial year of $827,877.

CITY OF BUNBURY



Page 15


(vi)Conditions over Grants/Contributions Opening Closing ClosingBalance (1) Received (2) Expended (3) Balance (1) Received (2) Expended (3) Balance

Function/Activity 1/07/2016 2016/17 2016/17 30/06/2017 2017/18 2017/18 30/06/2018Grant/Contribution $ $ $ $ $ $ $

GovernanceManagement of funds for Bunbury Marine project 919,753 113,393 (329,921) 703,225 6,863 (241,935) 468,153

Law, Order and Public Safety

Design and construct Bunbury SES headquarters 346,628 ‐ (309,295) 37,333 ‐ ‐ 37,333

Implement State CCTV Strategy Program ‐ 336,802 (307,953) 28,849 ‐ (28,849) ‐

Develop Safer Communities ‐ ‐ ‐ ‐ 11,891 ‐ 11,891

Education and Welfare

Community capacity waterwise kitchen gardens 16,858 ‐ (16,858) ‐ ‐ ‐ ‐

Age Friendly Communities Strategic Plan 8,022 ‐ (8,022) ‐ ‐ ‐ ‐

Disability access and inclusion plans/MARCIA Induction 3,497 ‐ (3,497) ‐ ‐ ‐ ‐

Community Amenities

Better Bins Kerbside Collection Program ‐ 164,852 ‐ 164,852 164,852 (102,424) 227,280

Campus Precinct Study 5,715 ‐ ‐ 5,715 ‐ ‐ 5,715

Waste Management Education 4,428 ‐ (4,428) ‐ ‐ ‐ ‐

Recreation and Culture

Detailed design plans for Hay Park Precinct ‐ ‐ ‐ ‐ 148,000 ‐ 148,000

Construct heritage fishing and crabbing platform 94,091 ‐ ‐ 94,091 ‐ ‐ 94,091

Construct heritage interpretation, Koombana Bay 71,179 ‐ (12,660) 58,519 ‐ ‐ 58,519

Construct heritage interpretation, Koombana Bay 12,548 ‐ ‐ 12,548 ‐ ‐ 12,548

Conduct Indigenous Art Program at BRAG ‐ ‐ ‐ ‐ 55,040 ‐ 55,040

Deliver outcomes of Greener City Strategy ‐ ‐ ‐ ‐ 40,000 ‐ 40,000

Refurbish Hay Park Grounds ‐ 22,727 (6,636) 16,091 20,455 (25,040) 11,506

Noongar Arts Strategy ‐ 10,000 ‐ 10,000 ‐ ‐ 10,000

Shorelines Cultural Program 4,200 ‐ ‐ 4,200 ‐ ‐ 4,200

CITY OF BUNBURY



Page 16


(vi)Conditions over Grants/Contributions Opening Closing ClosingBalance (1) Received (2) Expended (3) Balance (1)

Received (2) Expended (3) Balance


Recreation and Culture (continued)

Expand and upgrade Koombana Bay Foreshore 12,535,700 202,802 (1,240,078) 11,498,424 ‐ (11,498,424) ‐

Changing Place ‐ Koombana Bay Upgrade ‐ 70,000 ‐ 70,000 ‐ (70,000) ‐

Deliver SilverSport Funding ‐ 135,000 (80,584) 54,416 ‐ (54,416) ‐

BREC Capital Improvements ‐ FlyTower ‐ 44,138 ‐ 44,138 ‐ (44,138) ‐

Install accessible ramp at Koombana Bay 28,842 ‐ ‐ 28,842 ‐ (28,842) ‐

Implement Tourism WA Free Wi‐Fi at Visitor Centre ‐ 7,849 ‐ 7,849 ‐ (7,849) ‐

Develop 'The Classroom' ‐ Museum and Heritage Centre 28,523 ‐ (27,138) 1,385 ‐ (1,385) ‐

Deliver KidSport Funding ‐ 80,850 (80,165) 685 ‐ (685) ‐

Deliver South West Sports Hall of Fame project 5,000 ‐ (4,545) 455 ‐ (455) ‐

Renew and revitalise SWSC (CPRP) 16,730 ‐ (16,730) ‐ ‐ ‐ ‐

Support SWDC vacation care program 14,823 ‐ (14,823) ‐ ‐ ‐ ‐

Interpretative signage at Katherine Chauhan Reserve 4,095 ‐ (4,095) ‐ ‐ ‐ ‐

Deliver 'Aqua Walking' program 3,110 ‐ (3,110) ‐ ‐ ‐ ‐

SWSC Vacation Care Program 1,985 ‐ (1,985) ‐ ‐ ‐ ‐

TransportUpgrade and widen Jetty Road ‐ ‐ ‐ ‐ 37,713 ‐ 37,713

Construct helipad at Bunbury Airport ‐ ‐ ‐ ‐ 23,622 ‐ 23,622

Roadwise ‐ "M8 the call can W8" campaign ‐ 27,850 (25,749) 2,101 ‐ (2,101) ‐

Parade Road Intersection Upgrade Design 12,335 ‐ (12,335) ‐ ‐ ‐ ‐

Reconstruct embankment ‐ Koombana Drive 28,494 ‐ (28,494) ‐ ‐ ‐ ‐

Reconstruct embankment ‐ Koombana Drive 191,515 ‐ (191,515) ‐ ‐ ‐ ‐


CITY OF BUNBURY


Page 17


(vi)Conditions over Grants/Contributions Opening Closing ClosingBalance (1) Received (2) Expended (3) Balance (1) Received (2) Expended (3) Balance


Transport (Continued)

Upgrade Adam Rd Primary School carpark 176,925 ‐ (176,925) ‐ ‐ ‐ ‐

Traffic control signals ‐ Sandridge/Pennant 4,065 ‐ (4,065) ‐ ‐ ‐ ‐

Reconstruct Pennant Road 30,000 ‐ (30,000) ‐ ‐ ‐ ‐

Economic Services

Regional Tourism Strategy Implementation ‐ 52,000 (7,780) 44,220 5,000 ‐ 49,220

Regional Tourism Strategy ‐ Infrastructure ‐ 20,000 ‐ 20,000 20,000 ‐ 40,000

Implementation of Bunbury Geographe Branding ‐ ‐ ‐ ‐ 24,990 ‐ 24,990

Establish a Bunbury‐Geographe Map ‐ ‐ ‐ ‐ 19,205 ‐ 19,205

Implement Visitor Centre Upgrades ‐ ‐ ‐ ‐ 11,913 ‐ 11,913

Support Bunbury Hotel investment analysis 35,000 ‐ (35,000) ‐ ‐ ‐ ‐

14,604,061 1,288,263 (2,984,386) 12,907,938 589,544 (12,106,543) 1,390,939

Notes:

(1) ‐ Grants/Contributions recognised as revenue in a previous reporting period which were not expended at the close of that previous reporting period.

(2) ‐ New grants/contributions which were recognised as revenues during the reporting period and which has not yet been fully expended in the manner specified by the contributor.

(3) ‐ Grants/contributions which had been recognised as revenues in a previous reporting period or received in the Current reporting period and which were expended in the current reporting period in the manner specified by the contributor.

CITY OF BUNBURY



Page 18

2.

Expenses 2018 2017$ $

(vii) Auditors Remuneration

‐ Audit of the Annual Financial Report 18,000 29,600‐ Financial Management Review 6,600 8,000‐ Other Services 5,725 4,387

30,325 41,987

(viii) Interest Expenses (Finance Costs)Debentures 665,055 719,474Debentures ‐ Self Supporting 51,822 61,979Refer Note 12(a) 716,877 781,453

(ix) Rental Charges

‐ Operating Leases 188,210 111,371

CITY OF BUNBURY



Grants, Donations and Other Contributions (Continued) a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed within this note.

That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operations.

Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over

SIGNIGICANT ACCOUNTING POLICIES

Grants, Donations and Other Contributions

Grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions.

REVENUES AND EXPENSES (Continued)

Grant Revenue (Continued)

Page 19

Note 2018 20173. CASH AND CASH EQUIVALENTS $ $

Unrestricted 9,237,142 8,333,253 Restricted 27,077,985 34,213,094

36,315,127 42,546,347

Unspent Grants 1,390,939 12,907,938 Unspent Loans ‐ 57,441

Cash Backed Reserves 14ACDI Equipment Replacement Program 734,693 660,417 Airport 133,278 70,032 Asset Management and Renewal 4,687,042 7,049,972 Building Restoration and Maintenance 2,640,254 457,254 Bunbury Museum and Heritage Centre 3,850 ‐Canal Management 537,304 478,599 City Arts Collection 46,368 40,211 City of Bunbury General Parking 8,284,129 2,050,725 College Grove Subdivision Amended Joint Venture 28,107 33,766 Depot Construction 709,742 2,992,682 Disaster Relief Fund ‐ (City of Bunbury) 100,000 100,000 Dual Use Path Upgrade Contributions 59,746 59,746 Employee Entitlements and Insurance 992,196 979,020 Environmental 182,679 189,707 Hay Park Regional Athletics Track 440,665 370,665 Heritage Building Maintenance 27,500 27,500 Infrastructure Development 557,739 153,333 Land Subdivision and Development 340,723 340,723 Local Planning Policy Framework 88,255 100,000 Meat Inspection 163,554 112,636 Planning and Development Act Section 152 678,325 541,325 Plant and Equipment 417,357 492,410 Public Art 73,536 135,333 Refuse Collection and Waste Minimisation 2,996,047 3,197,477 Road Upgrade Contributions 171,704 171,704 Town Planning Scheme Land Acquisition and Compensation 132,505 132,505 Withers 459,748 309,974

27,077,985 34,213,094

SIGNIFICANT ACCOUNTING POLICIES

CITY OF BUNBURY



The following restrictions have been imposed by regulations or other externally imposed requirements:

Cash and cash equivalents

Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk

Cash and cash equivalents (Continued)

of changes in value and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial position.

Page 20

4. INVESTMENTS

To manage cash flow requirements and maximise return, funds have been invested in:Term deposits with the following financial institutions:

‐ ANZ Bank‐ Bankwest‐ Bendigo Bank‐ Commonwealth Bank of Australia‐ National Australia Bank‐ Westpac Banking Corporation

On‐call Cash deposit funds with:‐ Commonwealth Bank of Australia‐ WA Treasury Corporation

Invested Funds2018 2017

Investment Type Term $ $Bankwest Short Term 2,531,218 9,030,470 Bendigo Bank Short Term ‐ 1,000,000 National Australia Bank Term Deposit Short Term 4,500,000 19,478,468 Westpac Banking Corporation Short Term 23,948,259 2,000,000 Commonwealth Bank of Australia On‐Call Fund Oncall 4,000,000 4,250,000 WA Treasury Corporation On‐Call Fund Oncall 240,009 4,262,423

35,219,486 40,021,361

5. TRADE AND OTHER RECEIVABLES

NoteCurrentRates Outstanding 1,052,922 873,607 Sundry Debtors 500,768 771,079 GST Receivable 403,372 319,104 Loans ‐ Clubs/Institutions 12 17,532 199,663 Prepayments and Accruals 594,524 730,866 Infringements 298,034 367,983

2,867,153 3,262,302

Non‐CurrentRates Outstanding ‐ Pensioners 494,331 485,424 Deferred Debtors 27,121 40,037 Loans ‐ Clubs/Institutions 12 61,858 1,146,884

583,310 1,672,344


Funds surplus to the City's daily operating requirements and restricted funds are invested with approved financial institutions.

CITY OF BUNBURY


Page 21

5. TRADE AND OTHER RECEIVABLES (Continued)

2018 2017Note $ $

Rates outstanding 1,052,922 873,607 Includes:

Past due and not impaired 30(b) 1,052,922 873,607 Impaired ‐ ‐

Sundry debtors 500,768 771,079 Includes: 30(b)

Past due and not impaired 44,860 50,503 Impaired ‐ ‐

6. INVENTORIES

Current

Construction Materials and Fuel 18,740 20,051 Bunbury Visitor Information Centre Stock Held for Sale 5,814 5,161Bunbury Wildlife Park Stock Held for Sale 19,456 13,756 South West Sports Centre Stock Held for Sale 17,981 17,373

61,991 56,340

CITY OF BUNBURY


Information with respect to the impairment or otherwise of the totals of rates outstanding and sundry debtors is as follows:


Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non‐current assets.

Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.

Classification and subsequent measurement

Loans and receivables are non‐derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Loans are receivables are included in current assets where they are expected to mature within 12 months after the end of the reporting period.


Trade and other receivables

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business.


General

Inventories are measured at the lower of cost and net realisable value.

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

Page 22

2018 2017$ $

7. (a) PROPERTY, PLANT AND EQUIPMENT

Land‐ Independent Valuation 2017 ‐ Level 2 111,917,389 111,917,389 ‐ Additions after valuation ‐ cost 2,410,428 ‐

114,327,816 111,917,389

Buildings‐ Independent Valuation 2017 ‐ Level 3 129,472,678 129,472,678 ‐ Additions after valuation ‐ cost 3,532,341 ‐Less: Accumulated Depreciation (3,188,131) ‐

129,816,887 129,472,678

Plant and Vehicles‐ Independent and Management Valuation 2016 ‐ Level 2 5,407,063 5,407,063 ‐ Additions after valuation ‐ cost 936,538 355,170Less: Accumulated Depreciation (1,321,153) (683,754)

5,022,449 5,078,479

Equipment‐ Management Valuation 2017 ‐ Level 3 2,970,768 2,970,768 ‐ Additions after valuation ‐ cost 1,009,307 ‐Less: Accumulated Depreciation (665,313) ‐

3,314,761 2,970,768

Furniture and Fittings‐ Management Valuation 2018 ‐ Level 3 189,682 ‐‐ Management Valuation 2015 ‐ Level 2 ‐ 254,571 ‐ Additions after valuation ‐ cost ‐ 75,928 Less: Accumulated Depreciation ‐ (99,230)

189,682 231,269

Arts and Culture‐ Independent and Management Valuation 2017 ‐ Level 3 2,201,752 2,201,752 ‐ Additions after valuation ‐ cost 18,571 ‐Less: Accumulated Depreciation (28,657) ‐

2,191,666 2,201,752

CITY OF BUNBURY



Page 23

2018 2017$ $

7. (a) PROPERTY, PLANT AND EQUIPMENT (Continued)

Capital Works in ProgressBuildings 4,603,314 572,439 Plant and Vehicles 45,738 ‐Equipment 108,044 14,057 Furniture and Fittings 21,236 ‐

4,778,332 586,496

259,641,592 252,458,830

The fair value of property, plant and equipment is determined at least every three years in accordance with the regulatory framework. Additions since the date of valuation are shown at cost, given they were acquired at arms length and any accumulated depreciation reflects the usage of service potential, it is considered the recorded written down value approximates fair value. At the end of each intervening period the valuation is reviewed and where appropriate the fair value is updated to reflect current market conditions. This process is considered to be in accordance with Local Government (Financial Management) Regulations 17A(2) , which requires property, plant and equipment to be shown at fair value.

CITY OF BUNBURY



Page 24

7. PROPERTY, PLANT AND EQUIPMENT (Continued)

(b)Movements in Carrying Amounts

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

Land BuildingsPlant and

Vehicles EquipmentFurniture and

FittingsArts and

CultureCapital Works

in Progress Total$ $ $ $ $ $ $ $

Balance at 1 July 2017 111,917,389 129,472,678 5,078,479 2,970,768 231,269 2,201,752 586,496 252,458,830

Additions 3,254,480 3,232,908 1,062,560 1,017,267 25,325 18,571 4,613,931 13,225,041

Transfers from Work in Progress ‐ 408,038 ‐ 13,477 ‐ ‐ (421,515) ‐

Internal Re‐classifications ‐ ‐ ‐ (701) 701 ‐ (580) (580)

(Disposals) (844,052) (104,250) (373,156) (15,046) (5,135) ‐ ‐ (1,341,639)

Revaluation ‐ Increments ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Revaluation ‐ Decrements ‐ ‐ ‐ ‐ (18,915) ‐ ‐ (18,915)

Impairment (Loss) / Reversals ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Depreciation Expense ‐ (3,192,486) (745,435) (671,004) (43,563) (28,657) ‐ (4,681,145)

Carrying amount at 30 June 2018 114,327,816 129,816,887 5,022,449 3,314,761 189,682 2,191,666 4,778,332 259,641,592

CITY OF BUNBURY



Page 25

7. PROPERTY, PLANT AND EQUIPMENT (Continued)

(c) Fair Value Measurements

Asset ClassFair Value

HierarchyValuation Technique Basis of valuation

Date of last

ValuationInputs Used

Land 2Sales Comparison (Market) approach

using recent observable market data for similar properties

Independent Registered Valuers

June 2017 Price per hectare

Buildings 3

Improvements to land valued using cost approach using depreciated replacement cost and Market approach using recent observable market data for similar

properties


June 2017Improvements to land using construction costs (level 2) and current condition (Level 3), residual values and remaining useful life assessments (Level 3) inputs

Plant and Vehicles

‐ Independent valuation 2016 2Sales Comparison (Market) approach

using recent observable market data for similar assets


June 2016 Market Price per item

‐ Management valuation 2016 3Market approach and Cost approach using

depreciated replacement costManagement Valuation

June 2016Purchase costs (level 2) and current condition (Level 3), residual values and remaining useful life assessments

(Level 3) inputs

Equipment 3Cost approach using depreciated

replacement costManagement Valuation

June 2017Residual values and remaining useful life assessments

(Level 3) inputs.

Furniture and Fittings 3Cost approach using depreciated


June 2018Residual values and remaining useful life assessments

(Level 3) inputs.

Arts and Culture

‐ Independent valuation 2017 2Market approach using recent observable

market data for similar art workIndependent

Registered ValuersJune 2017 Price per item

‐ Management valuation 2017 3

Cost approach using depreciated replacement cost for art and culture

assets excluding art collections and public art

Management Valuation

June 2017Purchase costs (level 2) and current condition (Level 3), residual values and remaining useful life assessments

(Level 3) inputs

CITY OF BUNBURY



Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement.During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant and equipment using either level 2 or level 3 inputs.

Page 26

2018 2017$ $

8. (a) INFRASTRUCTURE

Roads‐ Management Valuation 2018 ‐ Level 3 245,585,951 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 248,131,693 Less: Accumulated Depreciation (113,903,110) (117,406,685)

131,682,841 130,725,008

Paths‐ Management Valuation 2018 ‐ Level 3 64,860,532 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 57,528,272 Less: Accumulated Depreciation (24,088,763) (13,333,917)

40,771,768 44,194,355

Stormwater‐ Management Valuation 2018 ‐ Level 3 101,236,413 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 96,000,425 Less: Accumulated Depreciation (38,040,334) (28,842,090)

63,196,079 67,158,335

Open Space

‐ Management Valuation 2018 ‐ Level 3 37,160,594 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 39,938,330 Less: Accumulated Depreciation (8,573,723) (9,827,798)

28,586,871 30,110,532

Marine‐ Independant Valuation 2018 ‐ Level 3 27,722,386 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 12,316,969 Less: Accumulated Depreciation (12,562,881) (5,159,330)

15,159,506 7,157,639

Structures‐ Independent and Management Valuation 2018 ‐ Level 3 28,380,620 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 24,465,962 Less: Accumulated Depreciation (5,263,092) (4,973,070)

23,117,529 19,492,892

Bridges‐ Independent and Management Valuation 2018 ‐ Level 3 8,981,388 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 7,501,400 Less: Accumulated Depreciation (2,963,765) (1,065,669)

6,017,623 6,435,731

Other Infrastructure

‐ Management Valuation 2018 ‐ Level 3 10,964,908 ‐ ‐ Management Valuation 2017 ‐ Level 3 ‐ 9,208,995 Less: Accumulated Depreciation (4,524,444) (2,905,742)

6,440,464 6,303,253

CITY OF BUNBURY



Page 27

2018 2017$ $

8. (a) INFRASTRUCTURE (Continued)

Capital Works in Progress

Roads 1,930,686 11,383 Stormwater 305,229 216,497 Open Space ‐ 1,273,748 Marine 46,005 46,005 Structures 278,525 4,413 Other Infrastructure 234,333 ‐

2,794,779 1,552,045

317,767,461 313,129,791

The fair value of infrastructure is determined at least every three years in accordance with the regulatory framework. Additions since the date of valuation are shown at cost, given they were acquired at arms length and any accumulated depreciation reflects the usage of service potential, it is considered the recorded written down value approximates fair value. At the end of each intervening period the valuation is reviewed and where appropriate the fair value is updated to reflect current market conditions. This process is considered to be in accordance with Local Government (Financial

Management) Regulations 17A(2) , which requires infrastructure to be shown at fair value.


CITY OF BUNBURY


Page 28

8. INFRASTRUCTURE (Continued)

(b) Movements in Carrying Amounts

Balance as at

1 July 2017

2016/17 Work

in Progress

Capitalised Additions (Disposals)Internal Re‐

Classifications

Revaluation

Increments/

(Decrements)

Impairment

(Losses)/

Reversals

Depreciation

Expense

Carrying

Amount at

30 June 2018

$ $ $ $ $ $ $ $ $

Roads 130,725,008 11,383 4,139,261 (272,082) ‐ 870,072 ‐ (3,790,799) 131,682,842

Paths 44,194,355 ‐ 2,022,047 (574,489) ‐ (3,455,434) ‐ (1,414,711) 40,771,768

Stormwater 67,158,335 216,497 1,457,613 (209,756) ‐ (4,262,900) ‐ (1,163,709) 63,196,079

Open Space 30,110,532 1,273,748 2,547,078 (2,982,290) ‐ (1,275,216) ‐ (1,086,981) 28,586,871

Marine 7,157,639 ‐ 1,644,346 ‐ ‐ 7,011,478 ‐ (653,958) 15,159,506

Structures 19,492,892 4,413 2,805,277 (33,604) 580 1,304,651 ‐ (456,681) 23,117,529

Bridges 6,435,731 ‐ 1,286,768 ‐ ‐ (1,563,877) ‐ (141,000) 6,017,623

Other Infrastructure 6,303,253 ‐ 2,108,578 (101,670) ‐ (792,164) (241,175) (836,359) 6,440,464

Capital Works in Progress

1,552,045 (1,506,040) 2,748,774 ‐ ‐ ‐ ‐ ‐ 2,794,779

313,129,791 ‐ 20,759,743 (4,173,890) 580 (2,163,390) (241,175) (9,544,197) 317,767,462

CITY OF BUNBURY



Page 29

8. INFRASTRUCTURE (Continued)

(c) Fair Value Measurements

Asset ClassFair Value

HierarchyValuation Technique Basis of valuation

Date of last

ValuationInputs Used

Roads 3Cost approach using depreciated

replacement costManagement Valuation June 2018

Construction costs (level 2) and current condition (level 3), residualvalues and remaining useful life assessments (Level 3) inputs

Paths 3Cost approach using depreciated


Stormwater 3Cost approach using depreciated


Open Space 3Cost approach using depreciated


Marine 3Cost approach using depreciated

replacement costIndependent Registered

Valuers

Structures 3Cost approach using depreciated

replacement cost

Independent Registered Valuers (Public Art) and Management Valuation

Bridges 3Cost approach using depreciated

replacement cost

Independent Registered Valuers and

Management Valuation

Other Infrastructure 3Cost approach using depreciated


CITY OF BUNBURY



Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement.

During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.

Page 30

June 2018 Construction costs (level 2) and current condition (level 3), residual

values and remaining useful life assessments (Level 3) inputs













9. FIXED ASSETS


Fixed Assets Land under control

Each class of fixed assets within either property, plant and In accordance with Local Government (Financial Management)equipment or infrastructure, is carried at cost or fair value as Regulation 16(a)(ii), the City was required to include as indicated less, where applicable, any accumulated depreciation asset (by 30 June 2013), Crown Land operated by the and impairment losses. local government as a golf course, showground, racecourse

or other sporting or recreational facility of State or RegionalInitial recognition and measurement between significance. mandatory revaluation dates

All assets are initially recognised at cost and subsequently revalued Upon initial recognition, these assets were recorded at cost in in accordance with the mandatory measurement framework. accordance with AASB 116. They were then classified as Land

and revalued along with other land in accordance with the otherIn relation to this initial measurement, cost is determined as the fair polices detailed in this Note.value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or the nominal Land under roads

consideration, cost is determined as fair value at the date of In Western Australia, all land under roads is Crown Land, theacquisition. The cost of non‐current assets constructed by the responsibility for managing which, is vested in the localCity includes the cost of all materials used in construction, government.direct labour on the project and an appropriate proportion of variableand fixed overheads. Effective as at 1 July 2008, Council elected not to recognise

any value for land under roads acquired on or before 30 JuneIndividual assets acquired between initial recognition and the next 2008. This accords with the treatment available in Australianrevaluation of the asset class in accordance with the mandatory Accounting Standards AASB 1051 Land Under Roads and themeasurement framework, are recognised at cost and disclosed as fact Local Government (Financial Management) Regulation being at fair value as management believes cost approximates 16 (a)(ii) prohibits local governments from recognising such landfair value. They are subject to subsequent revaluation at the as an asset.next anniversary date in accordance with the mandatorymeasurement framework. In respect of land under roads acquired on or after 1 July 2008,

as detailed above, Local Government (Financial Management)Revaluation Regulation 16(a)(i) prohibits local governments from The fair value of fixed assets is determined at least every three recognising such land as an asset.years in accordance with the regulatory framework. At the end ofeach period the valuation is reviewed and where appropriate Whilst such treatment is inconsistent with the requirements ofthe fair value is updated to reflect current market conditions. AASB 1051, Local Government (Financial Management) The process is considered to be in accordance with Regulation 4(2) provides, in the event of such an inconsistency,Local Government (Financial Management) Regulation 17A (2) the Local Government (Financial Management) Regulations which requires property, plant and equipment to be shown at fair prevail.value.

Increases in carrying amount arising on revaluation of Consequently, all land under roads acquired on or after 1 July 2008 is not included as an asset of the City.

assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in equity. All other decreasesare recognised in profit or loss.

CITY OF BUNBURY



Page 31

9. FIXED ASSETS (Continued)

(a) Disposals of Assets

Asset by Class Actual Budget Actual Budget Actual Budget$ $ $ $ $ $

Land 844,052 710,000 6,653,575 6,653,425 5,809,523 5,943,425 Buildings 104,250 ‐ ‐ ‐ (104,250) ‐ Plant and Vehicles 373,156 604,123 355,736 686,895 (17,419) 82,772 Equipment 15,046 ‐ 918 ‐ (14,128) ‐ Furniture and Fittings 5,135 ‐ ‐ ‐ (5,135) ‐ Roads 272,082 ‐ ‐ ‐ (272,082) ‐ Paths 574,489 ‐ ‐ ‐ (574,489) ‐ Stormwater 209,756 ‐ ‐ ‐ (209,756) ‐ Open Space 2,982,290 ‐ ‐ ‐ (2,982,290) ‐ Structures 33,604 ‐ ‐ ‐ (33,604) ‐ Other Infrastructure 101,670 ‐ ‐ ‐ (101,670) ‐

5,515,530 1,314,123 7,010,230 7,340,320 1,494,700 6,026,197

Profit 5,809,523 6,026,197 Loss (4,314,823) ‐

1,494,700 6,026,197

(b) Depreciation2018 2017

$ $

Buildings 3,192,486 2,989,602 Plant and Vehicles 745,435 707,124 Equipment 671,004 878,550 Furniture and Fittings 43,563 45,271 Arts and Culture 28,657 38,259 Infrastructure

Roads 3,790,799 3,155,788 Paths 1,414,711 1,298,970 Stormwater 1,163,709 1,135,389 Open Space 1,086,981 1,049,403 Marine 653,958 386,525 Bridges 141,000 112,969 Structures 456,681 455,263 Other Infrastructure 836,359 857,175

14,225,341 13,110,288



The following assets were disposed of during the year:

Net Book Value Sale Price Profit (Loss)

CITY OF BUNBURY

Page 32

9. FIXED ASSETS (Continued)

Buildings 10 to 80 yearsFurniture and Fittings 7 to 13 yearsEquipment 4 to 60 yearsPlant and Vehicles 4 to 30 yearsArts and Culture 4 to 100 yearsRoads 25 to 75 yearsRoad Formation Not DepreciatedStormwater 20 to 100 yearsOpen Space 5 to 100 years Pathways 20 to 60 yearsBridges 10 to 100 yearsMarine 8 to 60 yearsStructures 8 to 80 yearsOther Infrastructure 6 to 100 years

10. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

2018 2017$ $

Governance 12,703,686 13,205,616 General Purpose Funding 2,160 5,384 Law, Order, Public Safety 6,694,297 8,344,160 Health 2,697,384 2,610,023 Education and Welfare 4,044,155 4,149,850 Community Amenities 73,168,038 77,250,060 Recreation and Culture 238,450,984 240,447,858 Transport 224,331,349 214,198,318 Economic Services 11,274,042 11,274,453 Other Property and Services 26,638,486 23,007,210 Unallocated 17,232,051 18,633,023

617,236,632 613,125,955

CITY OF BUNBURY




DepreciationThe depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated on a straight‐line basis over the individual asset's useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements.

Depreciation (Continued)

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

asset are:

asset. and the net amount restated to the revalued amount of the b) Eliminated against the gross carrying amount of the asset of the asset after revaluation equals its revalued amount; or

treated in one of the following ways:any accumulated depreciation at the date of the revaluation is When an item of property, plant and equipment is revalued,

Depreciation rates

Major depreciation periods used for each class of depreciable

carrying amount of the asset so that the carrying amounta) Restated proportionately with the change in the gross in which they arise.

included in the statement of comprehensive income in the periodproceeds with the carrying amount. These gains and losses areGains and losses on disposals are determined by comparing

Page 33

(b) Depreciation (Continued)

2018 2017$ $

11. TRADE AND OTHER PAYABLES

CurrentSundry Creditors 2,473,266 2,669,660 Accrued Interest on Loans 61,789 67,647 Accrued Salaries and Wages 264,035 256,878 Deposits and Prepayments 479,395 523,167 Income Received in Advance 1,038,353 942,075

4,316,837 4,459,427

Non‐CurrentCollege Grove Subdivision Profit Share 12,893 16,666

12,893 16,666


Trade and other payables (Continued)Trade and other payables

Trade and other payables represent liabilities for goods

CITY OF BUNBURYNOTES TO AND FORMING PART OF THE FINANCIAL REPORT


becomes obliged to make future payments in respectfinancial year that are unpaid and arise when the Cityand services provided to the City prior to the end of the

of the purchase of these goods and services. The amountsare unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.

Page 34

12. INFORMATION ON BORROWINGS

Principal1‐Jul New

2017 Loans Actual Budget Actual Budget Actual BudgetParticulars $ $ $ $ $ $ $ $Community Amenities

369 Urban Stormwater Drainage 1,314,074 ‐ 145,227 145,227 1,168,847 1,168,847 53,133 53,169 379 Public Amenities 200,000 ‐ 17,501 17,501 182,499 182,499 7,062 7,064

Sub Total 1,514,074 ‐ 162,728 162,728 1,351,346 1,351,346 60,195 60,233 Law, Order, Public Safety

371 DFES Construct new SES Headquarters* 899,840 ‐ 899,840 899,840 ‐ ‐ 41,933 36,408 377 DFES Construct & fitout SES HQ* 296,665 ‐ 296,665 296,665 ‐ ‐ 3,015 9,780

Sub Total 1,196,505 ‐ 1,196,505 1,196,505 ‐ ‐ 44,948 46,188 Recreation and Culture

345 Bunbury and Districts Hockey Club* 53,851 ‐ 53,851 53,851 ‐ ‐ 3,337 3,570 346 Bunbury Bowling Club* 19,728 ‐ 9,591 9,591 10,137 10,137 1,118 1,164 351 SWSC Heating, Filtration and Gas 158,631 ‐ 77,121 77,121 81,510 81,510 8,963 9,272 358 Irrigation Upgrades 86,555 ‐ 86,555 86,555 ‐ ‐ 3,031 3,297 362 Bunbury Regional Entertainment 3,217,132 ‐ 402,013 402,013 2,815,119 2,815,119 153,951 156,323

Centre Expansion365 Hay Park South Multi Purpose 1,052,912 ‐ 116,364 116,364 936,548 936,548 42,573 42,601

Sports Pavilion366 Hands Oval Upgrade 878,966 ‐ 132,517 132,517 746,449 746,449 39,318 40,075 367 Glen Iris Skate Park 189,554 ‐ 23,687 23,687 165,867 165,867 9,071 9,211 372 Hay Park Sports Pavilions 296,709 ‐ 29,568 29,568 267,141 267,141 9,778 9,781 373 Bunbury Museum & Heritage 293,000 ‐ 25,640 25,640 267,360 267,360 10,346 10,347 380 Bunbury Bowling Club* 76,463 ‐ 7,210 7,210 69,253 69,253 2,419 2,427

Sub Total 6,323,502 ‐ 964,117 964,117 5,359,385 5,359,385 283,906 288,068

Repayments 30‐Jun‐18

Interest

Repayments

CITY OF BUNBURY



Principal Principal

Page 35

(a) Loan Principal and Interest Repayments

12. INFORMATION ON BORROWINGS (Continued)

Principal1‐Jul New

2017 Loans Actual Budget Actual Budget Actual BudgetParticulars $ $ $ $ $ $ $ $Transport

350 Kerbside Parking Meters 418,739 ‐ 131,414 131,414 287,325 287,325 26,150 26,809 355 Road and Path Construction 326,575 ‐ 158,771 158,771 167,804 167,804 18,455 19,088 359 Road and Path Construction 66,510 ‐ 66,510 66,510 ‐ ‐ 2,329 2,534 360 CBD Parking 20,955 ‐ 20,955 20,955 ‐ ‐ 734 798 363 Roadworks and Path Construction 875,090 ‐ 131,933 131,933 743,157 743,157 39,143 39,898 364 Cobblestone Drive Car Park 193,889 ‐ 29,231 29,232 164,658 164,657 8,673 8,840 368 Path and Road Construction 826,462 ‐ 91,337 91,337 735,125 735,125 33,416 33,440 370 Airport Upgrades 201,656 ‐ 22,286 22,286 179,370 179,370 8,154 8,159 378 Roadworks and Path Construction 780,000 ‐ 68,256 68,256 711,744 711,744 27,541 27,548

Sub Total 3,709,875 ‐ 720,693 720,694 2,989,182 2,989,181 164,597 167,114 Other Property and Services

319 Civic Administration Building 2,281,878 ‐ 130,785 130,785 2,151,093 2,151,093 145,817 145,817 329 Civic Administration Building 369,888 ‐ 116,295 116,295 253,593 253,593 22,529 23,322 381 Depot Construction ‐ 3,000,000 ‐ 127,832 3,000,000 2,872,168 748 60,000

Sub Total 2,651,767 3,000,000 247,080 374,912 5,404,687 5,276,855 169,094 229,139

15,395,723 3,000,000 3,291,123 3,418,956 15,104,602 14,976,767 722,739 790,742

(*) Self supporting loan financed by payments from third parties. Total Interest 2017/18All other loan repayments were financed by general purpose revenue. Actual 722,739

Accrued (5,863)716,877

Repayments 30‐Jun‐18 Repayments

CITY OF BUNBURY



Principal Principal Interest

Page 36

(a) Loan Principal and Interest Repayments


(b) New Loans ‐ 2017/18

Institution Loan Term Interest Balance

Actual Budget Type (Years) Rate * Actual Budget UnspentParticulars/Purpose $ $ $ % $ $ $

Other Property and Services

381 Depot Construction 3,000,000 3,000,000 WATC Debenture 10 39,647 3.91 3,000,000 3,000,000 ‐

‐ 1,000,000 WATC Debenture 10 ‐ 1,000,000 ‐ Recreation and Culture

371 Water Playground382 Stirling Street Arts Centre ‐ 900,000 WATC Debenture 10 ‐ 900,000 ‐

3,000,000 4,900,000 39,647 3,000,000 4,900,000 ‐

Loans 371 and 382 were not required during the 2017/18 financial year and have been rebudgeted in the 2018/19 financial year.

(*) Inclusive of Government Guarantee Fee ‐ Currently 0.70% pa

(c) Unspent Debentures

Balance Borrowed Expended Balance1‐Jul‐17 During Year During Year 30‐Jun‐18

Particulars $ $ $ $

379 Public Amenities 57,441 ‐ 57,441 ‐

57,441 ‐ 57,441 ‐

Total Interest

& Charges

Amount Borrowed Amount Used

CITY OF BUNBURY



Page 37


(d) Overdraft

Council does not have an overdraft facility at balance date.

2018 2017$ $

‐ ‐ 100,000 80,000

(508) (1,842)

Undrawn Borrowing Facilities Credit Standby Arrangements Bank Overdraft limitCredit Card LimitCredit card balance at balance date Total amount of credit unused 99,492 78,158

2,210,963 2,223,631 12,893,639 13,172,095

Loan FacilitiesLoan Facilities ‐ currentLoan Facilities ‐ non‐currentTotal facilities in use at balance date 15,104,602 15,395,726

Unused loan facilities in use at balance date ‐ 57,441

(e) Loan Guarantees provided by the City of Bunbury

Council Resolution: 11 November 1997 (Resolution 18a)Loan Guarantee Provided to: Bunbury Regional Entertainment CentreAmount: $40,000Amount Used as at 30 June 2018: NilFinancial Institution: Commonwealth Bank of AustraliaPurpose: Operating Overdraft account

Council Resolution: 2 July 2013 (Resolution 184/13)Loan Guarantee Provided to: Community Home Care Inc.Amount: $550,000Amount Used as at 30 June 2018: $386,399Financial Institution: Bendigo and Adelaide BankPurpose: Construction of new premises for Community Home Care


Financial liabilities

guarantees) are subsequently measured at amortised cost.Non‐derivative financial liabilities (excluding financial

becomes a party to the contractual provisions to the instrument.

assumed, is recognised in profit or loss.paid, including the transfer of non‐cash assets or liabilities transferred to another party and the fair value of the considerationcarrying amount of the financial liability extinguished orare discharged, cancelled or expired. The difference between the

CITY OF BUNBURY



asset is substantially ready for its intended use or sale.of the costs of the particular asset until such time as the asset. Where this is the case, they are capitalised as partacquisition, construction or production of a qualifyingincurred except where they are directly attributable to the

Financial liabilities are recognised at fair value when the City Borrowing costs are recognises as an expense whenBorrowing costs

Financial liabilities are derecognised where the related obligations

Gains or losses are recognised in profit or loss.

Page 38

2018 2017$ $

13. PROVISIONS

CurrentAnnual Leave 1,879,016 1,799,924 Long Service Leave 1,896,344 1,801,849 RDO 38,336 31,807 Purchased Leave 29,712 14,013

3,843,409 3,647,593 Non‐Current

Long Service Leave 524,917 449,519

Total Provisions 4,368,326 4,097,113

Opening Balanceas at Provision as at

01‐Jul‐17 Movements 30‐Jun‐18

$ $ $

Annual Leave 1,799,924 79,092 1,879,016 Long Service Leave 2,251,369 169,893 2,421,262 RDO 31,807 6,530 38,336 Purchased Leave 14,013 15,699 29,712

4,097,113 271,214 4,368,326


CITY OF BUNBURY



Short‐term employee benefits

Employee benefits

obligation is settled.(undiscounted) amounts expected to be paid when theShort‐term employee benefits are measured at therelated service, including wages, salaries and sick leave.annual reporting period in which the employees render the

within 12 months after the end of the annual reporting period

to be settled wholly before 12 months after the end of thebenefits (other than termination benefits) that are expectedemployee benefits. Short‐term employee benefits areProvision is made for the City's obligations for short‐term

annual leave entitlements not expected to be settled whollyProvisions is made for employees' long service leave and Other long term employee benefits

recognised as provisions in the statement of financial position.

annual leave and long service leave entitlements are financial position. The City's obligations for employees' of current trade and other payables in the statement ofas wages, salaries and sick leave are recognised as a partThe City's obligations for short‐term employee benefits such

anticipated future wage and salary levels, durations ofemployees. Expected future payments incorporatevalue of the expected future payments to be made to long‐term employee benefits are measured at the presentin which the employees render the related service. Other

obligations are presented as current provisions.after the end of the reporting period, in which case theunconditional right to defer settlement for at least 12 monthsfinancial position, expect where the City does not have an

Other long term employee benefits (Continued)

presented as non‐current provisions in its statement of The City's obligations for long‐term employee benefits are

changes occur.recognised in profit or loss in the periods in which the obligations for other long‐term employee benefits areAny remeasurements for changes in assumptions of maturity dates that approximate the terms of the obligations.of the reporting period on government bonds that haverates determined by reference to market yields at the endservice and employee departures and are discounted at

Provisions

reporting period. amounts required to settle the obligation at the end of theProvisions are measured using the best estimate of the

will result and that outflow can be reliably measured.for which it is probable that an outflow of economic benefits

Provisions are recognised when the City has a present legal or constructive obligation, as a result of past events,

Page 39

2018 2018 2017Actual Budget Actual

$ $ $14. RESERVES ‐ CASH BACKED

ACDI Equipment Replacement Program

Opening Balance 660,417 660,417 587,895 Amount Set Aside / Transfer to Reserve 93,167 101,670 92,611 Amount Used / Transfer from Reserve (18,891) (10,000) (20,089)

734,693 752,087 660,417

Airport


133,278 125,053 70,032

Asset Management and Renewal

Opening Balance 7,049,972 7,040,042 4,447,972 Amount Set Aside / Transfer to Reserve 478,634 452,847 3,822,656 Amount Used / Transfer from Reserve (2,841,564) (5,155,062) (1,220,656)

4,687,042 2,337,827 7,049,972

Building Restoration and Maintenance

Opening Balance 457,254 457,254 238,254 Amount Set Aside / Transfer to Reserve 2,183,000 1,153,000 219,000 Amount Used / Transfer from Reserve ‐ (146,026) ‐

2,640,254 1,464,228 457,254

Bunbury Museum and Heritage Centre

Opening Balance ‐ ‐ 62,438 Amount Set Aside / Transfer to Reserve 3,850 800 ‐ Amount Used / Transfer from Reserve ‐ ‐ (62,438)

3,850 800 ‐

Canal Management

Opening Balance 478,599 465,932 444,146 Amount Set Aside / Transfer to Reserve 58,705 46,014 56,743 Amount Used / Transfer from Reserve ‐ ‐ (22,290)

537,304 511,946 478,599

CITY OF BUNBURY



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

Purpose: To receipt specific area rating from the Pelican Point Canal Development to provide for the ongoing management and maintenance of the canal residential and commercial area

Purpose: To provide funding for the Museum

Purpose: For the purchase and upgrade of Council buildings

Purpose: To provide funding for future asset management and renewal programs and projects

Purpose: For the Purchase and upgrade of equipment used by ACDI

Page 40


$ $ $14. RESERVES ‐ CASH BACKED (Continued)

City Arts Collection

Opening Balance 40,211 42,484 38,984 Amount Set Aside / Transfer to Reserve 6,157 ‐ 1,227 Amount Used / Transfer from Reserve ‐ ‐ ‐

46,368 42,484 40,211

City of Bunbury General Parking

Opening Balance 2,050,725 2,057,804 2,083,926 Amount Set Aside / Transfer to Reserve 7,463,076 7,604,885 2,068,209 Amount Used / Transfer from Reserve (1,229,672) (2,051,274) (2,101,410)

8,284,129 7,611,415 2,050,725

College Grove Subdivision Amended Joint Venture

Opening Balance 33,766 33,812 32,818 Amount Set Aside / Transfer to Reserve 925 850 948 Amount Used / Transfer from Reserve (6,583) (26,583) ‐

28,107 8,079 33,766

Depot Construction

Opening Balance 2,992,682 2,992,682 1,585,182 Amount Set Aside / Transfer to Reserve (2,282,940) ‐ 2,120,000 Amount Used / Transfer from Reserve ‐ (2,992,682) (712,500)

709,742 ‐ 2,992,682

Disaster Relief Fund ‐ (City of Bunbury)

Opening Balance 100,000 100,000 100,000 Amount Set Aside / Transfer to Reserve 3,000 20,000 ‐ Amount Used / Transfer from Reserve (3,000) (20,000) ‐

100,000 100,000 100,000

Dual Use Path Upgrade Contributions

Opening Balance 59,746 59,746 59,746 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐

59,746 59,746 59,746

Purpose: To receipt funds received from Council's subdivision conditions for the future provision of dual use paths improvements and path management measures to benefit path infrastructure

Purpose: To receipt funds received from Council's associated land sales raised for the purpose of constructing a new depot

Purpose: To provide funding for the development of land relating to the amended College Grove joint venture

Purpose: To fund Council's general parking motor vehicle parking requirements within the City of Bunbury and promotion of the Central Business District (CBD)

Purpose: For the Purchase and upgrade of Council Art Collections

Purpose: To provide relief of personal hardship and distress arising from natural disasters

CITY OF BUNBURY



Page 41



Employee Entitlements and Insurance


992,196 991,864 979,020

Environmental

Opening Balance 189,707 189,707 195,057 Amount Set Aside / Transfer to Reserve ‐ 23,900 ‐ Amount Used / Transfer from Reserve (7,028) (167,650) (5,350)

182,679 45,957 189,707

Hay Park Regional Athletics Track

Opening Balance 370,665 370,665 300,665 Amount Set Aside / Transfer to Reserve 70,000 70,000 70,000 Amount Used / Transfer from Reserve ‐ ‐ ‐

440,665 440,665 370,665

Heritage Building Maintenance


27,500 27,500 27,500

Infrastructure Development

Opening Balance 153,333 153,333 ‐ Amount Set Aside / Transfer to Reserve 725,026 725,020 375,053 Amount Used / Transfer from Reserve (320,620) (350,000) (221,720)

557,739 528,353 153,333

CITY OF BUNBURY



Purpose: Income received from the lease or rental of heritage buildings to be set aside from the maintenance of heritage buildings

Purpose: To provide future funds for employee related entitlements and insurance liabilities

Purpose: To receipt funds specifically raised from the annual rates levied for the renewal and upgrade of existing infrastructure assets

Purpose: To retain funds for the future replacement of the regional athletics track

Purpose: To receipt funds from specified are rate Environmental Services Levy for the future provision of environmental management and associated projects

Page 42



Land Subdivision and Development


340,723 340,723 340,723

Local Planning Policy Framework

Opening Balance 100,000 100,000 50,000 Amount Set Aside / Transfer to Reserve 50,000 50,000 50,000 Amount Used / Transfer from Reserve (61,745) (65,252) ‐

88,255 84,748 100,000

Meat Inspection


163,554 108,803 112,636

Planning and Development Act Section 152

Opening Balance 541,325 541,325 456,222 Amount Set Aside / Transfer to Reserve 137,000 ‐ 85,103 Amount Used / Transfer from Reserve ‐ ‐ ‐

678,325 541,325 541,325

Plant and Equipment

Opening Balance 492,410 516,827 323,327 Amount Set Aside / Transfer to Reserve 126,043 76,591 169,083 Amount Used / Transfer from Reserve (201,096) (230,568) ‐

417,357 362,850 492,410

Purpose: To provide funding for land subdivision development

CITY OF BUNBURY


Purpose: To provide funding for Local Planning Policy Framework

Purpose: To make funds available to enable the monitoring of annual meat inspection income and expenditure to ensure as far as possible the service is carried out on a self balancing basis


Purpose: To receipt income from the sale of Town Planning Act Section 20A Public Open Space Reserves to fund other public open space developments in accordance with the Town Planning Act

Purpose: To provide for the purchase of plant and equipment, including office furniture, office equipment, computer hardware and software

Page 43



Public Art

Opening Balance 135,333 135,333 135,333 Amount Set Aside / Transfer to Reserve 25,000 ‐ ‐ Amount Used / Transfer from Reserve (86,797) (86,797) ‐

73,536 48,536 135,333

Refuse Collection and Waste Minimisation

Opening Balance 3,197,477 3,212,855 3,544,134 Amount Set Aside / Transfer to Reserve 5,721,547 4,699,798 5,829,689 Amount Used / Transfer from Reserve (5,922,977) (7,553,903) (6,176,346)

2,996,047 358,750 3,197,477

Regional Museum

Opening Balance ‐ ‐ 3,442 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ (3,442)

‐ ‐ ‐

Road Upgrade Contributions

Opening Balance 171,704 171,704 153,730 Amount Set Aside / Transfer to Reserve ‐ ‐ 17,974 Amount Used / Transfer from Reserve ‐ ‐ ‐

171,704 171,704 171,704

Town Planning Scheme Land Acquisition and Compensation

Opening Balance 132,505 132,505 135,000 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ (9,725) (2,495)

132,505 122,780 132,505


CITY OF BUNBURY


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

Purpose: For land acquisitions and compensation payable in respect to the implementation of Council's Town Planning Schemes

Purpose: To receipt funds received from Council's subdivision conditions for the future provision of road improvements and traffic management measures to benefit road infrastructure

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

Purpose: To receipt any annual surplus from Council's waste collection/minimisation program to provide funding for Council's sanitation program

Page 44



Withers

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

Opening Balance 309,974 309,974 315,379 Amount Set Aside / Transfer to Reserve ‐ ‐ 149,686 Amount Used / Transfer from Reserve 149,774 (86,518) (155,091)

459,748 223,456 309,974

TOTAL RESERVES 25,687,046 17,411,679 21,247,715

Reserves Summary

Total Opening Balance 21,247,715 21,274,312 16,531,596 Total Amount Set Aside / Transfer to Reserve 15,421,986 15,561,558 15,828,906 Total Amount Used / Transfer from Reserve (10,982,655) (19,424,191) (11,112,786)TOTAL RESERVES 25,687,046 17,411,679 21,247,715

CITY OF BUNBURY



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

Page 45

2018 2017$ $

15. ASSET REVALUATION SURPLUS

(a) Land

Opening Balance 104,050,153 104,059,804 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ (9,651)

104,050,153 104,050,153

(b) BuildingsOpening Balance 79,212,247 74,702,234 Revaluation Increment ‐ 4,510,012 Revaluation Decrement ‐ ‐

79,212,247 79,212,247

(c) Plant and Vehicles

Opening Balance 564,591 564,591 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐

564,591 564,591

(d) Equipment

Opening Balance 378,880 378,880 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐

378,880 378,880

(e) Furniture and Fittings

Opening Balance 163,350 163,350 Revaluation Increment ‐ ‐ Revaluation Decrement (18,915) ‐

144,435 163,350

(f) Arts and Culture

Opening Balance 617,097 575,635 Revaluation Increment ‐ 41,462 Revaluation Decrement ‐ ‐

617,097 617,097

(g) RoadsOpening Balance 60,835,948 60,825,741 Revaluation Increment 870,072 10,207 Revaluation Decrement ‐ ‐

61,706,020 60,835,948

(h) Paths

Opening Balance 27,900,258 27,421,799 Revaluation Increment ‐ 478,459 Revaluation Decrement (3,455,434) ‐

24,444,824 27,900,258

CITY OF BUNBURY



Revaluation surpluses have arisen on revaluation of the following classes of non‐currentassets:

Page 46

2018 2017$ $

15. ASSET REVALUATION SURPLUS (Continued)

(i) StormwaterOpening Balance 37,467,499 26,045,932 Revaluation Increment ‐ 11,421,567 Revaluation Decrement (4,262,900) ‐

33,204,598 37,467,499

(j) Open Space

Opening Balance 3,056,439 8,468,432 Revaluation Increment ‐ ‐ Revaluation Decrement (1,275,216) (5,411,994)

1,781,222 3,056,439

(k) MarineOpening Balance 4,166,537 4,254,717 Revaluation Increment 7,011,478 ‐ Revaluation Decrement ‐ (88,180)

11,178,015 4,166,537

(l) Bridges

Opening Balance 3,529,642 3,418,194 Revaluation Increment ‐ 111,449 Revaluation Decrement (1,563,877) ‐

1,965,765 3,529,642

(m) StructuresOpening Balance 16,636,255 16,727,185 Revaluation Increment 1,304,651 ‐ Revaluation Decrement ‐ (90,930)

17,940,906 16,636,255

(n) Other Infrastructure

Opening Balance 792,164 ‐ Revaluation Increment ‐ 792,164 Revaluation Decrement (792,164) ‐

‐ 792,164

TOTAL ASSET REVALUATION SURPLUS 337,188,753 339,371,059

Revaluation Surplus Summary

Total Opening Balance 339,371,059 327,606,494 Revaluation Increment 9,186,201 17,365,320 Revaluation Decrement (11,368,507) (5,600,755)TOTAL ASSET REVALUATION SURPLUS 337,188,753 339,371,059



CITY OF BUNBURY

Page 47

16. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

2018 2017$ $

Cash and Cash Equivalents 36,315,127 42,546,347

(b) Reconciliation of Net Cash Provided By

Operating Activities to Net Result

Net Result 6,459,257 3,840,771

Non‐cash flows in Net Result:Depreciation 14,225,341 13,110,288 (Profit)/Loss on Sale of Asset (1,494,700) 1,061,425 Loss on Revaluation of Fixed Assets 241,175 ‐

Changes in assets and liabilities:(Increase)/Decrease in Receivables 198,985 (611,259)(Increase)/Decrease in Inventories (5,651) (4,051)Increase/(Decrease) in Payables (146,362) (145,181)Increase/(Decrease) in Employee Provisions 271,214 206,404

Grants, Contributions for the Developmentof Assets (6,985,214) (4,126,024)

Net Cash from Operating Activities 12,764,046 13,332,372

CITY OF BUNBURY



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:

Page 48

17. CONTINGENT LIABILITIES

In compliance with the Contaminated Sites Act 2003 Section 11, the City has listed sites to be possible sources of contamination. Details of those sites are:

Until the City conducts an investigation to determine the presence and scope of contamination, assess the risk, and agree with the Department of Water and Environmental Regulation on the need and criteria for remediation of a risk based approach, the City is unable to estimate the potential costs associated with remediation of these sites. This approach is consistent with the Department of Water and Environmental Regulation Guidelines.

* Nuytsia Ave* Lot 70 Winthrop Ave* Mangles St* Stanley Rd* Big Swamp POS* Koombana Dve* Molloy St* Jaycee Park* Turkey Point* ECU Land* Lot 9000

* Queens Gardens* Marlston Hill* Bunbury Airport* Bunbury Hospital* Rawling Rd* Donaldson Park* McCombe Rd* Lot 200 Robertson Dve* Clay Target Club* Austral Bricks Landfill* Bunbury Cemetery

* Pioneer Park Cemetery* Plaza St* Spencer St / Minninup Rd* Spencer St* Lot 1881 Koombana Dve* Koombana Dve * Wimbridge Rd* Strickland St* Hay Park* Jarvis St

18. CAPITAL AND LEASING COMMITMENTS

(a) Operating Lease Commitments

2018 2017Payable: $ $‐ not later than one year 166,704 176,279 ‐ later than one year but not later than five years 271,885 455,553 ‐ later than five years ‐ ‐

438,589 631,832

(b) Capital Expenditure Commitments

Contracted for:Purchase Lot 21 Wellington Street (South's) 2,309,091 ‐ Construct new depot, Sutherland Way 630,550 ‐ Horseshoe Lake catchment stormwater improvements 407,555 ‐ Koombana Bay Foreshore 158,846 9,738,129 Renew Pool Blankets at South West Sports Centre 134,490 ‐ Reconstruct pavement, Halifax Drive 84,553 ‐ Replace bore pumps 83,449 ‐ Remove liner and tile SWSC leisure pool 67,773 ‐ Redevelop Stirling Street Arts Centre 41,208 ‐ Cultural Precinct 35,409 107,448 Replace Wyalup / Rocky Point playground equipment 33,503 ‐ Construct helipad at Bunbury Airport 23,472 ‐ Repair jetties 10,820 ‐ Koombana Bay Playground ‐ 599,825 Replace waste vehicles and heavy plant ‐ 345,500 Bunbury Regional Entertainment Centre FlyTower ‐ 333,379 Replace corporate heavy plant ‐ 248,800 Koombana Bay Bore ‐ 106,592 Upgrade and segmentation of IT network infrastructure ‐ 65,756 Edwards Street road and drainage modifications ‐ 46,006 Queens Gardens Public Toilets Upgrade ‐ 31,666 Koombana Bay Accessible Ramp ‐ 28,842 Stubbs Close Electrical Cabinet ‐ 24,351 Replace corporate vehicles ‐ 16,288 Queens Gardens landscaping and irrigation upgrades ‐ 4,337 South West Sports Centre Accessible Changerooms ‐ 4,087 Barn Owl enclosure at Wildlife Park ‐ 1,268

4,061,475 11,702,274 Payable:‐ not later than one year 4,061,475 11,702,274 ‐ later than one year but not later than two years ‐ ‐

CITY OF BUNBURY



The City of Bunbury has the following capital expenditure commitments contracted for as at 30 June 2018which have not been recognised as a liability in the Statement of Financial Position:

Non‐cancellable operating leases contracted for but not capitalised in the accounts for photocopiers,gymnasium equipment and plant.

Page 49

19. JOINT VENTURE ARRANGEMENTS

(a) Land Development Agreements

CITY OF BUNBURY



Under the Original Joint Venture Agreement, the City and the Department of Primary Industries andRegional Development entered into a joint venture for the development, subdivision and sale of certainland in College Grove, Bunbury. The Original Joint Venture Agreement operated for approximately ten (10)years with the City having a 36.33% equity and the Department of Primary Industries and RegionalDevelopment having a 63.37% equity in the subdivision.

A Second Joint Venture Agreement between Landcorp, the City and the Minister on behalf of the State wassubsequently entered into for the development, subdivision and sale of additional land in College Grove,Bunbury. The Second Joint Venture Agreement covered an area of land primarily being the southernportion of the area of land covered by the Original Joint Venture Agreement.

It was intended by the parties that the Original Joint Venture Agreement would be terminated when theSecond Joint Venture Agreement was entered into but this did not occur because some land covered bythe Original Joint Venture Agreement had not been disposed of by the time the Second Joint VentureAgreement was entered into by the parties.

Due to part of the land comprised in the Second Joint Venture Agreement being ceded as Regional OpenSpace, as part of the proclamation of the Greater Bunbury Region Scheme and commitments made by theState Government that it would not undertake further development in College Grove, the developmentpotential of the land comprised in the Second Joint Venture Agreement was reduced. The StateGovernment provided in lieu of the reduced area of the College Grove Subdivision, alternate land fordevelopment.

In an agreement dated 31 October 2013 the parties agreed to terminate the Second Joint VentureAgreement so as to remove Landcorp from any further involvement, with the intent that the StateGovernment and the City will continue to work together to achieve the remaining outcomes under theOriginal Joint Venture Agreement and the Second Joint Venture Agreement by entering into a newAmended Joint Venture Agreement. The Amended Joint Venture Agreement also terminates the OriginalJoint Venture Agreement and compensates the City for its equity in the Second Joint Venture by thetransfer of freehold land to the City.

Under the Amended College Grove Joint Venture Agreement the City of Bunbury has a one third (33.33%)equity in the subdivision and the Department of Primary Industries and Regional Development two thirds(66.67%) equity in the subdivision. The City of Bunbury is the appointed manager of the subdivision. Thefunds originally held in the College Grove Land subdivision Reserve Account represented proceeds fromsales to date less development costs and have now been transferred to the Amended College Grove JointVenture Reserve to provide for the funding of future stages of the subdivision on behalf of the jointventure partners, eliminating the need to utilise borrowed funds.

After development costs and management fees are deducted from surplus income, profit on thesubdivision will be distributed to the joint venture partners in proportion to their equities. No dividendswere declared during 2017/18.

The Department of Primary Industries and Regional Development and the City have also entered into aFinancial Assistance Agreement for $2.8M to facilitate the City procuring the construction of the extensionof Somerville Drive, College Grove through to an intersection with Robertson Drive, College Grove to berepaid as part of the Amended Joint Venture Agreement from future land sales.

Page 50

19. JOINT VENTURE ARRANGEMENTS (Continued)

(a) Land Development Agreements (Continued)

2018 2017$ $

12,893 * 16,666 *Department of Primary Industries and Regional DevelopmentCity of Bunbury 15,214 17,100

28,107 33,766

*Included as a non‐creditor ‐ Refer Note 11

(b) Controlled Entity

Fees and Charges

Equity in Joint Venture2018 2017

$ $City of Bunbury 8,708,277 9,632,013 Shire of Harvey 1,010,782 1,118,002

9,719,059 10,750,015


Interests in Joint Ventures

Joint arrangements represent the contractual sharing of control between parties in a business where unanimous decisions about relevant activities are required.

Separate joint venture entities providing joint ventures with an interest to net assets are classified as a joint venture and accounted for using the equity method.

At 30 June 2018 the undistributed profits of the subdivision, which are held in Amended College Grove Joint Venture Reserve amount to:

CITY OF BUNBURY



89.60%10.40%

63.67%

36.33%

The City of Bunbury operates the Bunbury Harvey Regional Council in conjunction with the Shire of Harvey.The Regional Council was constituted with the City of Bunbury having 89.6% interest and the Shire ofHarvey having 10.4% interest.

Waste disposal fees payable by the City to the Bunbury Harvey Regional Council and reimbursements bythe Bunbury Harvey Regional Council to the City for accounting and payroll services are included in thefinancial statements.

Consolidated financial statements have not been prepared because they do not show a materiallydifferent position to that of the City of Bunbury due to the significant site rehabilitation costs expectedwith the post closure of the tip site. The City's equity in the joint venture is not considered material andtherefore does not form part of the financial statements.

liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements.

Interests in Joint Venture (Continued)

Joint venture operations represent arrangementswhereby joint operators maintain direct interestsin each asset and exposure to each liability of thearrangement. The City's interest in the assets,

Page 51

20. RELATED PARTY TRANSACTIONS

Elected Member Remuneration

2018 2018 2017The following fees, expenses and allowances were paid to Actual Budget Actualcouncil members and/or the mayor. $ $ $

Councillors Allowance 322,077 330,000 321,820 Mayoral Allowance 61,000 61,000 60,000 Deputy Mayoral Allowance 14,857 15,250 15,000 Telecommunications Allowance 44,388 45,500 45,500 Travel and Accommodation 3,322 20,000 7,014

445,643 471,750 449,333

Key Management Personnel (KMP) Compensation Disclosure

The total remuneration paid to KMP of the City during the year are as follows: 2018 2017

$ $Short‐term employee benefits 798,096 846,715 Post‐employment benefits 87,040 99,393 Other long‐term benefits 31,386 52,097 Termination benefits ‐ ‐

916,522 998,205

Post‐employment benefits

Other long‐term benefits

Termination benefits

CITY OF BUNBURY



Short‐term employee benefits

These amounts include all salary, paid leave, fringe benefits and cash bonuses awarded to KMP. Details in respect to fees and benefits paid to elected members (who are Key Management Personnel) may be found above in elected members remuneration table.

These amounts are the current‐year's estimated cost of providing for the City's superannuation contributions made during the year.

These amounts represent long service benefits accruing during the year.

These amounts represent termination benefits paid to KMP (Note: May or may not be applicable in any given year).

Page 52

20. RELATED PARTY TRANSACTIONS (Continued)

Transactions with related parties

2018 2017

$ $

Associated companies/individuals:

Sale of goods and services1 145,737 156,171 Purchase of goods and services2 (739,157) (760,788)

Joint Venture entities:

Distributions received from joint venture entities ‐ ‐

Amounts outstanding from related parties:

Trade and other receivables 10,542 156 Loans to associated entities ‐ ‐ Loans to key management personnel ‐ ‐

Amounts payable to related parties:

Trade and other payables (52,624) (56,508)Loans from associated entities ‐ ‐

Note:(1) Sale of goods and services

(2) Purchase of goods and services

Regional Council.

The City's main related parties are as follows:

entity, directly or indirectly, including any elected member, are considered key management personnel.

ii. Entities subject to significant influence by the City

iii. Joint venture entities accounts for under the equity method

The City has two joint venture arrangements, one with Bunbury‐Harvey Regional Council (89.60% equity holding)

21. MAJOR LAND TRANSACTIONS

22. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

financial year.Council did not participate in any trading undertakings or major trading undertakings during the 2017/18

and one with the Department of Primary Industries and Regional Development (36.33% equity holding). For detailsof interest held in joint venture arrangements, refer Note 19.


There were no major land transactions in the 2017/18 financial year.

CITY OF BUNBURY


i. Key management personnel

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the

Any entity that has the power to participate in the financial and operating policy decisions of an entity, but does

Significant influence may be gained by share ownership, statute or agreement. not have control over those policies, is an entity which holds significant influence.

This mainly includes accounting and payroll services provided to the Bunbury‐Harvey Regional Council.

This mainly includes normal commercial transactions for the disposal of waste received by the Bunbury‐Harvey

Transactions between related parties are on normal commercial terms and conditions no more favourable than thoseavailable to other parties unless otherwise stated. The following transactions occurred with related parties:

Page 53

23. RATING INFORMATION

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

Cents Properties $ $ $ $ $ Revenue Rate Rate RevenueRATE TYPE $ $ $ $General rate

Gross rental valuations

General 9.0870 13,554 373,501,934 33,940,119 129,543 1,848 34,071,510 33,940,120 174,433 ‐ 34,114,553Sub ‐ Total 13,554 373,501,934 33,940,119 129,543 1,848 34,071,510 33,940,120 174,433 ‐ 34,114,553

Minimum$

Minimum payment 1,131 2,812 27,624,249 3,180,372 ‐ ‐ 3,180,372 3,180,372 ‐ ‐ 3,180,372Sub ‐ Total 2,812 27,624,249 3,180,372 ‐ ‐ 3,180,372 3,180,372 ‐ ‐ 3,180,372

37,251,882 37,294,925

Concessions (refer Note 26) (70,719) (71,318)Total amount raised from general rate 37,181,163 37,223,607Specified Area Rate (Refer Note 24) 45,768 46,014

Total Rates 37,226,931 37,269,621

commencement of the rating period or, where earlier, upon receipt of the rates.




RatesControl over assets acquired from rates is obtained at the

Page 54

24. SPECIFIED AREA RATE

Rate in Basis Rateable Rate Budget Applied to Budget$ of Value Revenue Rate Reserve Applied to

(cents) Rate Revenue Reserve$ $ $ $ $

Pelican Point Grand Canal‐ Rate 1.1200 GRV 4,094,760 45,861 46,014 45,861 46,014‐ Interim Rate (93) ‐ (93) ‐

45,768 46,014 45,768 46,014

45,768 46,014 45,768 46,014

Pelican Point Grand Canal

25. SERVICE CHARGES

26. DISCOUNTS, INCENTIVES, CONCESSIONS & WRITE‐OFFS

1.

2.

3.

The competition is open to ratepayers of the City of Bunbury who pay the full amount due as listed on their 2017/18 rates notice before 4:00pm, 22 September 2017. No responsibility is accepted for late, lost or misdirected payments.

There is one (1) prize to be given away being a $2,000 cash prize courtesy of the Commonwealth Bank of Australia.

Councillors and Employees of the City of Bunbury, properties that receive a rates exemption, and government agencies are not eligible to be included in the prize draw.

IncentivesAn incentive prize of $2,000 from the Commonwealth Bank of Australia is offered to encourage the early payment of rates. The following terms and conditions applied to the 2017/18 early payment of rates incentive prize:



The rateable properties within the Grand Canals Specified Area Rate will be levied on a specified area rate for the purposeof raising funds to allow for the periodic dredging, clearing and maintenance of the canal waterways. The full amount raisedin 2017/18 has been transferred to the Canal Management Reserve.

No service charges were imposed in the reporting period.

Page 55

26. DISCOUNTS, INCENTIVES, CONCESSIONS & WRITE‐OFFS (Continued)

Type Disc %Total Cost/

ValueBudget

Cost/Value$ $

Rates ‐ Storage Units Concession 64,610 64,610 Rates ‐ TPS Heritage Concession 6,109 6,708

70,719 71,318

Rates Small Balances Write‐Off 8,987 8,450 Sundry Debtors Write‐Off 13,645 14,600 Infringements Write‐Off 107,938 115,048

130,570 138,098

201,289 209,416

ConcessionsStorage Units

Strata titled:

TPS Heritage Rates

27. INTEREST CHARGES AND INSTALMENTS

Interest RateAdmin. Charge Revenue

Budgeted Revenue

% $ $ $Interest on Unpaid Rates 11.00% 175,642 134,000 Interest on Instalment Plans 5.50% 230,726 231,047 Interest on Deferred Pensioners 11,986 11,986 Charges on Instalment Plans 21.00 117,621 117,700

535,975 494,733

The City of Bunbury contains a significant collection of heritage asset having cultural heritage significance. To acknowledgeand encourage conservation works of these properties a concession of 30% (up to a maximum of $1,000) on the generalrates payable will be provided to eligible properties for a period of five years where works relating to the conservation ofthe cultural heritage significance of the property has been undertaken in accordance with the City's Local Planning Policy ‐Rate Concession for Heritage Places. The total amount of TPS Heritage Rate Concessions in 2017/18 was $6,109.

Ratepayers had the option of paying rates in four equal instalments, due on 22 September 2017, 22 November 2017, 22January 2018 and 22 March 2018. Administration charges and interest applied for the final three instalments.

‐ Have no ablutions (waste water system) connected;‐ Maximum area of 75m2

‐ Zoned "Industrial" under Town Planning Scheme No 7;

To recognise the nature, purpose and size of storage units compared to other properties a concession of $497.00 per stratatitle storage unit, totalling $64,610 was granted to strata titled storage units. This concession is to be applied to 130 storageunits.



The Town Planning Scheme No 7 defines "Storage" Unit in the following terms "premises used for the storage of goods,equipment, plant or materials". Further to this definition, the following criteria must be met:

Page 56

28. NET CURRENT ASSETS

Composition of net current assets for the purposes of the Rate Setting Statement

2018 2018 2017

(30 June 2018

Carried Forward)

(1 July 2017

Brought Forward)

(30 June 2017

Carried Forward)

$ $ $

Surplus/(Deficit) 1 July 2017 Brought Forward 3,988,508 3,332,322 3,332,322

CURRENT ASSETS

Cash ‐ Unrestricted 9,237,142 8,333,253 8,333,253Cash ‐ Restricted 27,077,985 34,213,094 34,213,094Trade and Other Receivables 2,446,248 2,743,536 2,743,536Loans ‐ Clubs/Institutions 17,532 199,663 199,663GST Receivable 403,372 319,104 319,104Inventories 61,991 56,340 56,340

LESS CURRENT LIABILITIES

Trade and Other Payables (4,316,837) (4,459,427) (4,459,427)Provisions (3,843,409) (3,647,593) (3,647,593)Long and Short Term Borrowings (2,210,963) (2,223,631) (2,223,631)

Unadjusted Net Current Assets 28,873,062 35,534,340 35,534,340

AdjustmentsAdd back:Long and Short Term Borrowings 2,210,963 2,223,631 2,223,631

Less:Receivables ‐ Self Supporting Loans (17,532) (199,663) (199,663)Receivables ‐ Deferred Debtors ‐ (12,891) (12,891)Cash ‐ Reserves (25,687,046) (21,247,715) (21,247,715)Cash ‐ Restricted (1,390,939) (12,965,379) (12,965,379)

Adjusted Net Current Assets ‐ surplus(deficit) 3,988,508 3,332,322 3,332,322

Difference

There was no difference between the Surplus/(Deficit) 1 July 2017 Brought Forward position used in the 2018 auditedfinancial report and the Surplus/(Deficit) Carried Forward position as disclosed in the 2017 audited financial report.

CITY OF BUNBURY



Page 57

29. EMPLOYEE INFORMATION

(a) Employees Remuneration

Salary Range 2018 2017$100,000 ‐ $109,999 6 3$110,000 ‐ $119,999 3 2$120,000 ‐ $129,999 2 2$130,000 ‐ $139,999 1 2$140,000 ‐ $149,999 1 ‐$150,000 ‐ $159,999 ‐ 1$160,000 ‐ $169,999 1 1$170,000 ‐ $179,999 1 ‐$190,000 ‐ $199,999 ‐ 1$240,000 ‐ $249,999 ‐ 1$250,000 ‐ $259,999 1 ‐

(b) Employee Numbers

The number of full‐time equivalent employees at balance date 302 294

CITY OF BUNBURY



Set out below, in bands of $10,000, is the number of employees of the City of Bunbury entitled to an annual salary of $100,000 or more:

Page 58

30. FINANCIAL RISK MANAGEMENT

2018 2017 2018 2017$ $ $ $

Financial Assets

Cash and cash equivalents 36,315,127 42,546,347 36,315,127 42,546,347 Receivables 3,450,463 4,934,646 3,450,463 4,934,646

39,765,590 47,480,993 39,765,591 47,480,993

Financial Liabilities

Payables 4,329,730 4,476,093 4,329,730 4,476,093 Borrowings 15,104,602 15,395,726 15,104,602 15,395,726

19,434,333 19,871,818 19,434,333 19,871,818

Fair Value is determined as follows:

CITY OF BUNBURY



The City's activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and interest rate risk.The City's overall risk management focuses on the unpredictability of financial markets and seeks to minimise potentialadverse effects on the financial performance of the City.

The City does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.

Borrowings, held to maturity investments, estimated future cash flows discounted by the current market interest ratesapplicable to assets and liabilities with similar risk profiles.

Financial risk management is carried out by the finance area under policies approved by the Council.

The City held the following financial instruments at balance date:

Carrying Value Fair Value

Cash and Cash equivalents, receivables, payables ‐ estimated to the carrying value which approximates net market value.

Page 59

30. FINANCIAL RISK MANAGEMENT (Continued)

(a) Cash and Cash Equivalents

2018 2017$ $

Impact of a 1% (1) movement in interest rates of cash

‐ Equity 363,151 425,463 ‐ Statement of Comprehensive Income 363,151 425,463

Notes:

The major risk associated with investments is price risk ‐ the risk that the capital value of investments may fluctuate due tochanges in market prices, whether these changes are caused by factors specific to individual financial instruments of theirissuers or factors affecting similar instruments traded in a market.

Cash is 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 the City.

The City manages these risks by diversifying its portfolio and only investing in investments authorised by Local Government

(1) Sensitivity percentages based on management's expectation of future possible market movements.

The City's objective is to maximise its return on cash whilst maintaining an adequate level of liquidity and preserving capital.

CITY OF BUNBURY



Page 60


(b) Receivables

2018 2017Percentage of Rates and Annual Charges‐ Current 0% 0%‐ Overdue 100% 100%

Percentage of Sundry Receivables‐ Current 91% 93%‐ Overdue 9% 7%

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptablecollection performance.

The City's major receivables comprise rates and annual charges and user charges and fees. The major risk associated withthese receivables is credit risk ‐ the risk that the debts may not be repaid. The City manages this risk by monitoringoutstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date throughincentives.

Credit risk on rates and annual charges is minimised by the ability of the City to recover these debts as a secured charge overthe land, that is, the land can be sold to recover the debt. The City is also able to charge interest on overdue rates and annualcharges at higher than market rates, which further encourages payment.

CITY OF BUNBURY



The City makes suitable provision for doubtful receivables as required and carries out credit checks on most non‐rate debtors.

There are no material receivables that have been subject to a re‐negotiation of repayment terms.

The profile of the Council's credit risk at balance date was:

Page 61


(c) Payables and Borrowings

Duewithin

Duebetween

Dueafter

TotalContractual Carrying

1 year 1 & 5 years 5 years cash flows values$ $ $ $ $

2018Payables 4,316,837 12,893 ‐ 4,329,730 4,329,730 Borrowings 2,210,963 7,736,725 5,156,913 15,104,602 15,104,602

6,527,800 7,749,618 5,156,913 19,434,333 19,434,333

2017Payables 4,459,427 16,666 ‐ 4,476,093 4,476,093 Borrowings 2,223,631 7,445,003 5,727,092 15,395,726 15,395,726

6,683,057 7,461,669 5,727,092 19,871,818 19,871,818

Borrowings 2018 2017$ $

Fixed interest rate maturing:‐ within one year 259,449 227,874 ‐ one to five years 2,195,183 1,293,560 ‐ over five years 12,649,970 13,874,291

Total Borrowings 15,104,602 15,395,725

Weighted Average Effective Interest Rate 4.83% 4.56%

The contractual undiscounted cash flows of the City's Payables and Borrowings are set out in the Liquidity Table below:

Borrowings are also subject to interest rate risk ‐ the risk that movements in interest rates could adversely affect fundingcosts. The City manages this risk by borrowing long term and fixing the interest rate to the situation considered the mostadvantageous at the time of negotiation.

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

CITY OF BUNBURY



Payables and borrowings are both subject to liquidity risk ‐ that is the risk that insufficient funds may be on hand to meetpayment obligations as and when they fall due. The City manages this risk by monitoring its cash flow requirements andliquidity levels and maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities drawn uponif required.

Page 62

31. TRUST FUNDS

(a) Cash Funds held in Trust

Balance Amounts Amounts Balance1‐Jul‐17 Received Paid 30‐Jun‐18

$ $ $ $

Glen Iris Structure Plan 1,405,663 55,293 ‐ 1,460,955 Donations and Grants 2,473 ‐ ‐ 2,473 Unclaimed Monies 64,606 113 (1,254) 63,466 Fees Collected 3,936 220,124 (203,211) 20,849 Miscellaneous 6,506 1,555 (1,395) 6,666 Artist Payments 5,530 34,030 (36,858) 2,702 Tuart Brook Local Structure Plan 150,936 3,816 ‐ 154,752 Regional Waste Transfer Station 5,009,283 70,956 (5,080,238) ‐ Brookfield Rail Agreement 13,462 13,785 ‐ 27,246

6,662,394 399,672 (5,322,957) 1,739,109

(b) Assets held in Trust

Funds held at balance date over which the City of Bunbury has no control and which are not includedin the financial statements are as follows:

The City of Bunbury holds in trust various equipment, furniture and fittings for charitable purposes as listed in theDeed of Declaration of Charitable Trust: Bunbury Regional Art Gallery dated 15th September 2014.

CITY OF BUNBURY



Page 63

32. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS FOR APPLICATION IN FUTURE PERIODS

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reportingperiods, some of which are relevant to the City.

Management's assessment of the new and amended pronouncements that are relevant to the City, applicable to future reporting periods and which have notyet been adopted are set out as follows:

Title Issued/Compiled Applicable (1) Impact

(i) AASB 9 Financial Instruments December 2014 1 January 2018 Nil – The objective of this Standard is to improve and simplify the (incorporating AASB 2014‐7 and approach for classification and measurement of financial assetsAASB 2014‐8) compared with the requirements of AASB 139. Given the nature of

the financial assets of the City, it is not anticipated the Standard willhave any material effect.

(ii) AASB 15 Revenue from Contracts with December 2014 1 January 2019 This Standard establishes principles for entities to apply to reportCustomers useful information to users of financial statements about the nature,

amount, timing and uncertainty of revenue and cash flows arisingfrom a contract with a customer.

The effect of this Standard will depend upon the nature of futuretransactions the City has with those third parties it has dealings with.It may or may not be significant.

(iii) AASB 16 Leases February 2016 1 January 2019 Under AASB 16 there is no longer a distinction between finance andoperating leases. Lessees will now bring to account a right‐to‐use assetand lease liability onto their statement of financial position for allleases. Effectively this means the vast majority of operating leases asdefined by the current AASB 117 Leases which currently do not impact the statement of financial position will be required to be capitalised on thestatement of financial position once AASB 16 is adopted.

Currently, operating lease payments are expensed as incurred. This willcease and will be replaced by both depreciation and interest charges.

Notes: Based on the current number of operating leases held by the City, the(1) Applicable to reporting periods commencing on or after the given date. impact is not expected to be significant.

CITY OF BUNBURY



Page 64

32. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS FOR APPLICATION IN FUTURE PERIODS (Continued)

Title Issued/Compiled Applicable (1) Impact

(iv) AASB 1058 Income of Not‐for‐Profit Entities December 2016 1 January 2019 These standards are likely to have a significant impact on the income (incorporating AASB 2016‐7 and recognition of NFP's. Key areas for consideration are:AASB 2016‐8) ‐ Assets received below fair value;

‐ Transfers received to acquire or construct non‐financial assets;‐ Grants received;‐ Prepaid Rates;‐ Leases entered into at below market rates; and ‐ Volunteer services.

Whilst it is not possible to quantify the financial impact (or if it ismaterial) of these key areas until the details of future transactions

Notes: are known, they will all have application to the City's operations.(1) Applicable to reporting periods commencing on or after the given date.

Adoption of New and Revised Accounting Standards

During the current year, the City adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, becamemandatory and which were applicable to its operations.

(i) AASB 2016‐4 Amendments to Australian 1 January 2017Accounting Standards ‐ Recoverable Amount of Non‐Cash‐Generating Specialised Assets of Not‐for‐Profit Entities.

(ii) AASB 2016‐7 Amendments to Accounting 1 January 2017Standards ‐ Deferral of AASB 15 for Not‐for‐ProfitEntities

Whilst many reflected consequential changes associate with the amendment of existing standards, the only new standard with material application is as follows:

CITY OF BUNBURY



Page 65

33. SIGNIFICANT ACCOUNTING POLICIESa) Goods and services tax (GST) g) Fair value of assets and liabilities (Continued)Revenues, expenses and assets are recognised net of the amount of the extent possible, the use of observable market data.GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). To the extent possible, market information is extracted from either

the principal market for the asset or liability (i.e. the market with theReceivables and payables are stated inclusive of GST receivable or greatest volume and level of activity for the asset or liability) or, in the payable. The net amount of GST recoverable from, or payable to, absence of such a market, the most advantageous market availablethe ATO is included with receivables or payables in the statement of to the entity at the end of the reporting period (i.e. the market that financial position. maximises the receipts from the sale of the asset after taking into

account transaction costs and transport costs).Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are For non‐financial assets, the fair value measurement also takes intorecoverable from, or payable to, the ATO are presented as operating account a market participant’s ability to use the asset in its highest cash flows. and best use or to sell it to another market participant that would use

the asset in its highest and best use.b) Current and non‐current classificationThe asset or liability is classified as current if it is expected to be settled h) Fair value hierarchywithin the next 12 months, being the City’s operational cycle. In the AASB 13 requires the disclosure of fair value information by level of case of liabilities where the City does not have the unconditional right the fair value hierarchy, which categorises fair value measurementto defer settlement beyond 12 months, such as vested long service into one of three possible levels based on the lowest level that an leave, the liability is classified as current even if not expected to be input that is significant to the measurement can be categorised into settled within the next 12 months. Inventories held for trading are as follows: classified as current or non‐current based on the City's intentions to release for sale. Level 1

Measurements based on quoted prices (unadjusted) in active markets c) Rounding off figures for identical assets or liabilities that the entity can access at the All figures shown in this annual financial report, other than a rate in measurement date.the dollar, are rounded to the nearest dollar. Amounts are presented inAustralian Dollars. Level 2

Measurements based on inputs other than quoted prices included in d) Comparative figures Level 1 that are observable for the asset or liability, either directly orWhere required, comparative figures have been adjusted to conform indirectly. with changes in presentation for the current financial year.

Level 3When the City applies an accounting policy retrospectively, makes a Measurements based on unobservable inputs for the asset or liability.retrospective restatement or reclassifies items in its financialstatements that has a material effect on the statement of financial The fair values of assets and liabilities that are not traded in an active position, an additional (third) statement of financial position as at the market are determined using one or more valuation techniques. beginning of the preceding period in addition to the minimum These valuation techniques maximise, to the extent possible, the use comparative financial statements is presented. of observable market data. If all significant inputs required to

measure fair value are observable, the asset or liability is included in e) Budget comparative figures Level 2. If one or more significant inputs are not based on observableUnless otherwise stated, the budget comparative figures shown in this market data, the asset or liability is included in Level 3.annual financial report relate to the current budget estimate for the relevant item of disclosure. Valuation techniques

The City selects a valuation technique that is appropriate in the f) Superannuation circumstances and for which sufficient data is available to measure The City contributes to a number of Superannuation Funds on behalf of fair value. The availability of sufficient and relevant data primarily employees. All funds to which the City contributes are defined depends on the specific characteristics of the asset or liability being contribution plans. measured. The valuation techniques selected by the City are

consistent with one or more of the following valuation approaches:g) Fair value of assets and liabilitiesFair value is the price that the City would receive to sell the asset or Market approachwould have to pay to transfer a liability, in an orderly (i.e. unforced) Valuation techniques that use prices and other relevant information transaction between independent, knowledgeable and willing market generated by market transactions for identical or similar assets orparticipants at the measurement date. liabilities.

As fair value is a market‐based measure, the closest equivalent Income approachobservable market pricing information is used to determine fair value. Valuation techniques that convert estimated future cash flows or Adjustments to market values may be made having regard to the income and expenses into a single discounted present value.characteristics of the specific asset or liability. The fair values of assetsthat are not traded in an active market are determined using one ormore valuation techniques. These valuation techniques maximise, to



Page 66

33. SIGNIFICANT ACCOUNTING POLICIES (Continued)

h) Fair value hierarchy (Continued) i) Impairment of assets (Continued)

Cost approachValuation techniques that reflect the current replacement cost of the service capacity of an asset.

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

Any excess of the asset's carrying amount over its recoverable amountis recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard(e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that otherStandard.

For non‐cash generating specialised assets that are measured underthe revaluation model ,such as roads, drains, public buildings and thelike, no annual assessment of impairment is required. Rather AASB

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the City gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable. 116.31 applies and revaluations need only be made with sufficient

regulatory to ensure the carrying value does not differ materiallyi) Impairment of assets from that which would be determined using fair value at the ends of In accordance with Australian Accounting Standards the City's cash the reporting period.generating non‐specialised assets, other than inventories, are assessedat each reporting date to determine whether there is any indication they may be impaired.



Page 67

34. ACTIVITIES/PROGRAMS

GOVERNANCE To provide a decision making process for the efficient allocation of scarce resources.

Includes the activities of members of council and the administrative support available to the council for the provision of governance of the district. Other costs relate to the task of assisting elected members and ratepayers on matters which do not concern specific council services.

GENERAL PURPOSE FUNDING To collect revenue to allow for the provision of services.

Rates, general purpose government grants and interest revenue.

LAW, ORDER, PUBLIC SAFETY To provide services to help ensure a safer and environmentally conscious community.

Supervision and enforcement of various local laws relating to fireprevention, animal control and other aspects of public safety includingemergency services.

HEALTH To provide an operational framework for environmental and community health.

Inspection of food outlets and their control, provision of meat inspectionservices, noise control and waste disposal compliance.

EDUCATION AND WELFARE To provide services to disadvantaged persons,the elderly, children and youth.

Elderly person's activities and support, community services planning,disabled persons, youth services, aboriginal issues, Meal on Wheelscentre, other welfare and voluntary persons.

COMMUNITY AMENITIES To provide services required by the community.

Refuse collection services, including recycling, greenwaste andhardwaste. Administration of the Town Planning Scheme, publicamenities and urban stormwater drainage works. Protection of theenvironment, coastline and waterways. Environmental planning.

RECREATION AND CULTURE To establish and effectively manage infrastructure and resource which will help the social wellbeing of

Maintenance of halls, recreation and cultural facilities, includingsportsgrounds, parks, gardens, reserves, playgrounds and foreshoreamenities. Maintenance of boat ramps and jetties. Townscape works.Operation of the Libraries, South West Sports Centre, Bunbury WildlifePark, Bunbury Regional Art Gallery, Bunbury Regional EntertainmentCentre, Bunbury Museum and Heritage Centre and other culturalactivities.

TRANSPORT To provide safe, effective and efficient transport services to the community.

Construction and maintenance of roads, drainage, footpaths, bridgesand traffic signs. Maintenance of pump stations and road verges,strategic planning for transport and traffic flows, street lighting andstreet cleaning, airport operation; parking control and car parkmaintenance.

ECONOMIC SERVICES To help promote the City and its economic well‐being.

Tourism and area promotion, operation of the Visitor Centre,International relationship expenses, City marketing and economicdevelopment, implementation of building control, operation of plantnursery.

OTHER PROPERTY AND SERVICES To monitor and control council's overheads operating accounts.

Private works operation, plant repair, public works overhead, landacquisition (including town planning schemes) and subdivisiondevelopment and sales.



Page 68

2018 2017 201635. FINANCIAL RATIOS



Page 69

1.297 1.246 1.111 0.707 0.643 0.524 0.601 0.621 0.620 0.943 0.743 0.748 3.592 4.492 3.287 (0.009) (0.005) (0.066)

Current RatioAsset Sustainability RatioAsset Consumption RatioAsset Renewal Funding RatioDebt Service Cover RatioOperating Surplus RatioOwn Source Revenue Coverage Ratio 0.953 0.948 0.948

The above ratios are calculated as follows:

Current Ratio

Asset Sustainability Ratio

Asset Consumption Ratio

Asset Renewal Funding Ratio

Debt Service Cover Ratio

Operating Surplus Ratio

Own Source Revenue Coverage Ratio

Notes:

Debt Service Cover Ratio 4.891

The Debt Service Cover Ratio is distorted for the 2018 Financial Year as the City received early repayment of the DFES self supporting loan.

If this was ignored, the calculation disclosed in the 2018 column above would be as follows:

own source operating revenue

own source operating revenueoperating expenses

depreciation expenses

depreciated replacement costs of assetscurrent replacement costs of depreciable assets

NPV of planning capital renewal over 10 years

principal and interest

operating revenue minus operating expenses

current assets minus restricted assets

current liabilities minus liabilities associated with restricted assets

capital renewal and replacement expenditure

NPV of required capital expenditure over 10 years

annual operating surplus before interest and depreciation

C i t y o f B u n b u r y 2 0 1 9 M e e t i n g S c h e d u l e

Council Briefing Session Ordinary Council Meetings Public Holidays Recess Period (Council does not meet) Local Government Election

MEETINGS START: 5.30PM MEETING VENUE: City of Bunbury Council Chambers 4 Stephen Street Bunbury

AGENDAS AND MINUTES: Can be downloaded from the City’s website: www.bunbury.wa.gov.au

ALL MEETINGS ARE OPEN TO THE PUBLIC UNLESS OTHERWISE STATED

PUBLIC QUESTION TIME: Questions must be in writing with a limit of 3 per person. Questions re-quiring research should be submitted 5 working days prior to the Meeting. Basic questions can be lodged up until 24 hours prior to the Meeting. Ques-tions which can be taken on notice and do not need to be answered on the night can be submitted up until 4pm on the day of the Meeting. Ques-tions can be submitted at the City’s Administration Building or via [email protected]. Forms can be located on the City’s website or available from Customer Service.

DEPUTATIONS: Deputations can be made at Council Meetings by completing the Request for Deputation Form found on the City’s website or Customer Service. Request for Deputations must be received 24 hours prior to the meeting.

January

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

May

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

September

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30

June

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

March M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

July

M T W T F S S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

August

M T W T F S S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31

October

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

November

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

December

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

February

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28

April

M T W T F S S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

Appendix CEO-1

DESCRIPTION

The current Big Swamp Precinct Concept Development plan encompasses the southern area of Big Swamp, a review of this plan is to be undertaken to incorporate the entire Big Swamp area.

The Master Plan will encompass the whole of the Big Swamp Precinct and integration of the adjacent Bunbury Wildlife Park.

The revised plan would also include management of the contaminated site issues within the area.

OBJECTIVES

Preserve the Environmental Sustainability

To enhance the amenity of the area

Increase community access and infrastructure in the precinct

BACKGROUND / COUNCIL DECISIONS

Council endorsed the Big Swamp Precinct Concept Development Plan at its 13 October 2015 meeting.

The development area has two primary functions, recreational and environmental, that are influenced by the context of the site.

It provides a significant and freely accessible community resource for recreation, education and tourism and is a regional attractor.

It also forms an important corridor and conduit for flora, fauna and water between the Big Swamp wetland and Five Mile Brook.

LINKAGES TO STRATEGIC COMMUNITY PLAN (SCP)

Theme 3 – Our places and spaces

Objective 3.7—Management of significant natural areas which provides for human enjoyment while protecting habitat and environmental values for generations to come.

ESTIMATED COST / GRANT FUNDING

The estimated cost to implement the Southern Development Plan was $1.425M (P50 based on 2015 figures and not including any contamination issues). The intention was to fund the implementation with the proceeds from the sale of Lot 89 Beach Road.

As there is no overall Master Plan for the Precinct, the full costs of the redevelopment are unknown.

OFFICER COMMENTS

The Big Swamp Precinct Concept Development Plan does not investigate or provide recommendations for the contamination issue present due to the area previously used as a municipal tip site.

The Big Swamp Concept Development Plan included consultation with a broad cross section of the community both during the development phase and public consultation period.

The current Development Plan needs to be reviewed and overall Big Swamp Master Plan developed, that considers all the lots including the Bunbury Wildlife Park.

P: 08 9792 7000 E : [email protected] A: 4 Stephen Street, Bunbury WA 6230, PO Box 21 Bunbury WA 6231

www.bunbury.wa.gov.au

Project Overview

BIG SWAMP MASTER PLAN

LINKAGES AND PREVIOUS WORKS

Contained in SCP

Listed in BG Growth Plan

Previous Community Engagement

Previous Budget Scoped

Designs/Concepts prepared

Contained in the LTFP

DESCRIPTION

In 2016, a reserve management plan was prepared for Boulters Heights in order to guide the future management of the site.

OBJECTIVES

To maintain and enhance the site’s visual and recreational amenity

To ensure that fire risk is appropriately addressed

To ensure that general risks posed by the site to its users and the general community are appropriately addressed through maintenance and management activities

To protect and enhance the recognised cultural heritage and potential tourism significance of the Apex Lookout on Withers Crescent

To protect and enhance remnant native vegetation and ecological values onsite.


At its meeting on 4 October 2016, Council resolved to, inter alia,

adopt the reserve management plan;

utilise the proceeds from the proposed disposal of Council land on Withers Crescent to support the plan’s implementation; and

to allocate ongoing funding towards the imple-mentation of the plan for the 2022/23 financial year onwards within the Integrated Financial Plan (Council Decision 363/16).


Implementation of the reserve management plan has links to the following SCP Objectives:

Theme 3— Our places and Spaces

Objective 3.7— Management of significant natural areas which provides for human enjoyment while protecting habitat and environmental values for generations to come.


Implementation of the plan was previously estimated to cost $1.26M (P70) over the first six years and approximately $50,000 p.a. thereafter.

As discussed, it is proposed that the proceeds from the disposal of land that the City is acquiring from the WA Government on Withers Crescent be used to commence the plan’s implementation.

OFFICER COMMENTS

Acquisition of, and subsequent disposal of the land on Withers Crescent is currently being progressed by the Economic Development and Lands Department.

Some routine management continues to occur at the site; however, implementation of the reserve management plan in full is yet to formally commence as it awaits the provision of the required funding. That is, it does not plan for a major upgrade of infrastructure.



Project Overview

Boulters Heights


Contained in SCP






DESCRIPTION

In conjunction with key stakeholders, development of a masterplan for the CBD for sustainable activation of the city centre as the region’s leading lifestyle, tourism, entertainment, education, and transit hub.

OBJECTIVES

To consolidate the CBD as the economic, social and cultural hub of the Bunbury Geographe region, with the preliminary objectives (subject to engagement outcomes) being:

To provide a range of high order services that cater for the local and regional community, including specialty shopping, restaurants, cafés and entertainment.

To provide a broad range of employment and investment opportunities to encourage diversity and adaptive reuse across the regional centre a city of three waters.

To encourage high quality, pedestrian-orientated development in the CBD as the focus of regional road, rail and radial bus public transport networks.

To encourage residential opportunities in the regional centre including high density housing and tourist accommodation that supports the role of the CBD and meets the needs of the community.

COUNCIL DECISIONS / BACKGROUND

Council noted Piacentini & Sons independently commissioned Master Plan (25 July 2017) produced by AECOM


Initiatives across the CBD span the triple-bottom-line of issues relevant to all SCP themes and goals.

Other relevant informing documents being the CBD Experience Survey undertaken in May 2017 and the City Heart Marketing Plan developed by the BGCCI in 2014.


The total project cost will be dependant on the scope, infrastructure requirements, and service factors.

It is felt that components of the project will require sizable Council funding to support applications to State and Federal Funding sources, and there will also the requirement/potential for PPP (Public Private Partnerships)

OFFICER COMMENTS

Bunbury CBD planning and revitalisation will need to take into consideration a number of factors including the provision of utilities (such as Water, transport nodes, Electricity etc).

At this point in time, initiation of the formal community and stakeholder engagement phase for the broader CBD planning process is expected to commence in the first half of 2019 using in-house resources.

Where there are synergies between the projects identified, and the objectives of the Council and the community, there remains a prospect that some projects can be advanced.



Project Overview

CBD Planning and Revitalisation


Contained in SCP





DESCRIPTION

The Civic and Cultural Precinct has two elements/ stages. The work within the stages may be delivered separately or concurrently.

Stage One - City of Bunbury The development of multi-deck carpark and adjacent community building and public realm.

Stage Two— Public Private Partnership (PPP) The delivery of the Commercial / Retail and Residential component on the eastern side of the proposal (subject to further project planning)

OBJECTIVES

Enhance the regional gallery component of BRAG

Increase social and economic vibrancy of the CBD

Activate community spaces

Provide long term parking solution

Provide a pedestrian friendly east—west connection between beach and inlet and a north—south connection between Stirling Street and the waterfront.

Encourage development and new business through onsite carparking policy changes.


The 12 July 2016 Council endorsed the Community Consultation report and progress a concept design for the ‘Souths Car Park’ on Wittenoom Street.

The project was expanded to include Lot 5 Wellington and further clarification was sought by Council and at the 11 July 2017 7 key elements were confirmed.

Bollig Design Group presented the Concept Plans to Council on 6 March 2018.



Objective 3.2 An irresistible city centre, with thriving businesses and vibrant inner – city residential community.


The estimated cost of the preferred concept design for stage one is $37M (P70) with the project split over two components. Deliver new community and gallery space, street

upgrades and piazza plus BRAG works $22.9M New car park delivery $14.1M No scope has been prepared for State 2 at this

stage.

OFFICER COMMENTS

The Civic and Cultural Precinct is an exciting project for the City which would enhance the City reputation as the second capital city of Western Australia and the cultural hub for the South West.

The City engaged Bollig Design Group in February 2017 to undertake an initial business assessment and design of the Civic and Cultural Precinct. The design was to include a multi-deck carpark, Wittenoom Street as a shared space between Prinsep and Wellington Street, public parkland (Gallery Square) and Gallery Space.



Project Overview

CIVIC AND CULTURAL PRECINCT


Contained in SCP






DESCRIPTION

Review demands within the existing urbanised area to east of Victoria Road to ensure that there is contemporary infrastructure and recreational provisions that meets the needs of the community.

OBJECTIVES

To ensure that development is coordinated and integrated.

To provide for place-based design guidance for new development.

To ensure urban design is functional, creates a distinctive identity and is robust to enable it to evolve over time.

To develop a safe, visually attractive and pedestrian oriented neighbourhood centre as the community and commercial focus of the local area.

To ensure that the character, amenity and environmental values of the local area are protect-ed and enhanced.


What has been achieved so far:

Glen Iris - Moorlands Local Area Plan adopted 2008 to guide structure planning of development ready land accordingly:

▪ Moorlands Structure Plan (Riverlea Estate) adopt-ed 2009

▪ Revised Glen Iris Structure Plan adopted 2010

▪ Wimbridge Precinct Structure Plan adopted 2015.

Bunbury Farmers Market Local Development Plan adopted 2013.

Vittoria Road Concept Plan (Opus) accepted 2013.

Updated flood modelling (SKM) and revised draft Floodplain Management Policy 2016.


Initiatives across the local area span the triple-bottom-line of issues relevant to all SCP themes and goals.


Operational support provided by the City on an in-kind basis, as not presently a scheduled project under Council's long term integrated financial plan or annual budget.

OFFICER COMMENTS

This project will encompass a larger body of work from Willinge Drive to Preston River and initially look at engagement with the local community to identify aspirations for the existing urbanised area.

It will also test community views on matters include infrastructure, footpaths, linkages, existing parks, open space, and linkages.

This project has also been identified as one of 3 focus areas of the recently established Bunbury Development Committee, that the City of Bunbury participates in.



Project Overview

Glen Iris


Contained in SCP






DESCRIPTION

Upgrade the playing ground, infrastructure (both building and perimeter to allow for commercial leasing) to meet the required standards for hosting elite level matches and meet community expectations as part of the redevelopment of the precinct.

OBJECTIVES

Provide fit for purpose, modern facilities that meet the current standards or service of the community.

Provide National Class facilities in the South West capable of hosting elite level games as a minimum standard.


Council Decision 56/12 determined that the City would “adopt Stage 1 of the Hands oval Master Plan and note the longer term Stages 2 and 3.”


Theme 1 - Our community and culture

Objective 1.2 An active community able to access a wide range of sporting, recreation and leisure options.


$50,000 will be proposed to develop initial concept designs in the August budget review.

This will enable better estimation of the require capital cost to redevelop the building infrastructure to provide modern, fit for purpose facilities.

For the City to access grant funding through CSRFF to support this project a minimum contribution of 33% will be required for sporting associated infrastructure.

OFFICER COMMENTS

Stage 1 of the Hands Oval Masterplan was completed in 2012 with the relaying of the playing surface and installation of light towers capable of hosting televised AFL matches. Stages 2 and beyond were not considered at the time due to lack of funds.

With Landcorp involved in the potential to redevelop the Hands Oval precinct in partnership with the City, South Bunbury Football Club, the West Australian Football Commission and the City are looking at options to upgrade the building infrastructure around the ground to meet the required standards for hosting elite level matches, community expectations as part of the redevelopment of the precinct.

Stage 1 of the Hands Oval Master Plan provided the capital funds required to redevelop the playing surface and associated lighting to meet this requirement.

As stages 2 and 3 were only ‘noted for the longer term’ when Stage 1 was adopted the need to upgrade the buildings providing changing, spectating and toilet facilities remains to be completed.

With Landcorp as a partner the City is investigating various options to develop the surrounding precinct for a balance of commercial, residential and recreational uses that could include providing some of the funding required to redevelop the built infrastructure that provides changing, toilet and spectator facilities.



Project Overview

Hands Oval Infrastructure


Contained in SCP






DESCRIPTION

The redevelopment of the City’s primary sports facilities located at Hay Park to ensure the City provides modern, fit for purpose, sustainable, multi use facilities that meet the needs of the community.

OBJECTIVES

Hay park to remain the premier sporting precinct in the South West.

Rationalisation of clubs and facilities through the philosophy of shared use via the co-location of user groups at multi use facilities including the potential to consolidate and/or relocate existing user groups.

Provide fit for purpose, modern facilities that meet the funding requirements of the State Gov-ernment.


Supported by Council Decision 72/18—Community Sport & Recreation Strategy

This planning process is also aligned to Council Decision 72/18 and seeks to identify opportunities to increase multi-use facilities to optimise the use of City assets.



Goal 1.2 - An active community able to access a wide range of sporting, recreation & leisure options.


The total project cost estimate of $10M (based on estimates in 2010) is to be reviewed under the current strategy.

It is felt that external funding will be required to be sought either from State, Federal sources or both to deliver any upgrades to the facility.

In all cases a significant City contribution will be a pre-requisite to any funding application.

OFFICER COMMENTS

Hay Park is classified as a Premier Sporting Pitch and Field within the South West.

The Community Sport & Recreation Strategy also in-cludes a review of the requirements for sports clubs and user groups to ensure that the City is able to provide fit for purpose facilities (sports grounds & associated built facilities) to meet the growing demands associated with a growing City.

Hay Park has been subject to extensive consultation since 2012 noting certain Sporting Clubs wish to move to hay park that priorities may have changed and these are being reassessed through the redevelopment works program established

It is essential for the future social, economic and community prosperity of the City that the facilities at Hay Park are upgraded to ensure that they remain mod-ern, fit for purpose and capable of servicing the needs of the City community.



Project Overview

Hay Park Redevelopment


Contained in SCP





Contained in LTFP

DESCRIPTION

Review the Leschenault Inlet Master Plan (LIMP) due to recent developments in the vicinity and the need to ensure the integration of blue and green spaces in a modern, contemporary manner.

OBJECTIVES

Enhance an inner city waterway to deliver environmental value and enhance economic, social and tourism returns.

Improve the connectivity between the Inlet, Koombana Bay and the City.


The LIMP was adopted at the 11 June 2013 Council Meeting. The LIMP was produced to provide an overall vision for the development and improvement of the area surrounding Leschenault Inlet. The Master Plan divided the area into 10 precincts that reflect the unique physical (built and natural) characteristics of each area. The precincts are:

1. Koombana North

2. Koombana South

3. City Square

4. Queen’s Gardens

5. Frank Buswell Foreshore

6. The Quays

7. Inlet Entrance

8. Mangrove Conservation

9. Koombana Tourism

10. Koombana Mixed Use.



Objective 3.7 Management of significant natural areas which provides for human enjoyment while protecting habitat and environmental values for generations to come.


The estimated cost to implement the LIMP in 2013 was $10.2M

OFFICER COMMENTS

The LIMP has been used as the guiding document when improvements have been implemented in the area. Queen’s Gardens – Friendship has had soft landscaping improvements completed in keeping with the themes outlined in the LIMP.

Three of the precincts are now the responsibility of the State Government. Koombana North has had forward landscaping works completed and is waiting construction of mixed commercial / residential building. The Mangrove Conservation and Koombana Tourism precinct is incorporated into the State Government ‘Koombana Park’.

The City commissioned a concept design and detailed plan for a Water Playground at the Koombana South precinct.

This project has changed focus and is being investigated as a joint venture at Skyes Foreshore. The seawall re-placement program is ongoing and is a staged multi-year project.



Project Overview

Leschenault Inlet Master Plan


Contained in SCP






DESCRIPTION

The emergence of innovative technologies to help cities become smarter holds great promise.

Yet a significant challenge remains: finding ways to finance the much-needed associated infrastructure and system developments and upgrades.

This project will supply seed funding for any Smart Cities initiatives that are suggested by the iTAG or other agencies.

OBJECTIVES

The City of Bunbury to be a leading digital smart city that:

Integrates the use of information and communication technology

Uses technology to increase the efficiency of city operations; and

Improves the way the city interacts with its rate payers and grows the local economy.


Them 2 - Our economy

Objective 2.1 - Bunbury builds on its competitive advantages, support innovation and celebrates business success


Budget $20,000 no expenditure as yet.

These funds were designed to help support and act as seed funding for any smart city projects

OFFICER COMMENTS

The Innovation and Technology Advisory Group (iTAG), the City’s foremost innovation ideas group, has been developing an ideas bank of future smart city projects.

Over the next couple of months, the group will run a two-part regional Internet of Things (IoT) hackathon to explore the use and development of IoT solutions with the prospect of commercialisation.

The notion of using the City’s recently reengineered CCTV fibre network to supply CBD wide high speed Wi-Fi or directly connected fibre internet access, that would be of significate value to local businesses, is being explored, as is the possibility of an innovation hub as part of the CCP.

The possible development of a cloud storage solution for local businesses using economies of scale and the City’s data centre is being fleshed out.

The City is also looking at digital signage technologies to display content such as digital images, video, streaming media, and information. They can be located in public spaces, museums, and the City’s corporate buildings.

They will provide wayfinding, show off exhibitions, marketing and outdoor advertising. The City is looking at strategically developing a fully integrated digital signage solution.



Project Overview

Smart Cities


Contained in SCP





Contained in LTFP

DESCRIPTION

The redevelopment of the City’s regional sports & leisure centre (South West Sports Centre) to ensure the City provides modern, fit for purpose, sustainable, multi use facilities that meet the needs of the community.

OBJECTIVES

The SWS remains the premier sporting centre in the South West

The SWSC is able to meet the needs of the Bunbury and Greater Bunbury population for the 20 years.

All facilities meet competition standards

Develop partnerships with the SWSC as a key service provider delivering preventative health services to the community

The SWSC remains competitive as a leading provider of facilities and services to the community at an ac-ceptable cost.


Supported by Council Decision 72/18—Community Sport & Recreation Strategy


Theme 1– Our community and culture

Goal 1.2 - An active community able to access a wide range of sporting, recreation & leisure options.


The total project cost will be dependant on the scope of any redevelopment which is to be determined.

External funding will be required to be sought from State, Federal sources or both.

In all cases a significant City contribution will be a pre-requisite to any funding application.

OFFICER COMMENTS

The centre attracts over 500,000 visitations per year and is also home to 13 sporting clubs and associations.

Any upgrades to the Centre should be undertaken to ensure that it is fit for purpose and meets contemporary standards whilst servicing the needs of the City and regional community

Community and User Group consultation has commenced with business case development to follow in the next 12 months for presentation to Council.

It is felt that all components of the project will require Council funding to support applications to State &/or Federal funding sources with at minimum, a contribution of 50% from the City.



Project Overview

SWSC Redevelopment


Contained in SCP






DESCRIPTION

Provision of a heritage interpretative precinct at the head of the Jetty Road Causeway groyne and the development of water based opportunities, including fishing infrastructure.

Finalise the refurbishment of the Sir William Arrol Crane.

OBJECTIVES

To create Heritage Interpretative precinct

Provision of fishing platform

Activation of public space


The construction of the Bunbury Timber Jetty commenced in 1864 with a 420m section completed.

The jetty was extended over nine stages to an ultimate length of 1,680m, with final extension completed in 1957. The last export occurred in 1982.

The Jetty was handed over to the City of Bunbury from the State Government, however the jetty fell into a state of disrepair and posed a danger to the public and access to the public was closed.

The jetty was deconstructed in 2014 jointly funded by the City of Bunbury and State Government (Landcorp).

The deconstruction was approved by WAPC and one of the advice notes required the design and implementation of interpretative panels to the satisfaction of the Heritage Council of WA.

Wilkes Architects were engaged to produce the Bunbury Jetty Causeway Heritage Interpretation Concept Masterplan.


Theme 1 – Our community and culture

Objective 1.4 - Arts, culture, heritage and events that enrich our understanding and enjoyment of life, celebrate our identity and bring the community together


The estimated cost for the project is $6.753M (P70 based on 2017 budget estimates).

OFFICER COMMENTS

The Master Plan aims to recreate the experience of the original jetty by including a deconstructed feature that replicates the original jetty width and alignment.

The plan includes crane restoration, interpretative feature elements, interpretive signage to fishing platforms, provision of water, waste and power services, jetty works, interpretive centre, café and public toilets.

It is to be noted for the full plan to be realised management of the section of the causeway will be re-quired to be transferred from Department of Transport, who are currently responsible for the length of the causeway.

In addition ownership of the Sir William Arrol Crane requires clarification.



Project Overview

Timber Jetty Interpretation


Contained in SCP






DESCRIPTION

To consider a scheme to recycle and re-use treated wastewater for irrigation purposes.

OBJECTIVES

Utilise valuable water resource currently discharged at ocean outfalls

Reduce environmental impact

Free up groundwater allocation for strategic use (other than irrigation)


The City of Bunbury’s Public Open Space requires significant quantities of water to sustain.

Continued use of limited groundwater supplies has the potential to increase salinity of the aquifers and further supresses aquifer water levels and limits opportunities for other potential users to benefit from this resource.

The City together with Department of Water and Aqwest have had ongoing discussions regarding the reuse of treated wastewater that is currently discharged to the ocean as recycled water for irrigation purposes.

The project is to supply treated waste water to irrigate Hay Park sporting grounds (which could be expanded in the future to offer recycled water to adjacent areas to the benefit of residents, visitors and businesses) creating green spaces and boosting investment potential within the City and the surrounding region.



Objective 3.5 - Efficient use of resources, particularly water and energy, with minimum waste and efficient disposal

Objective 3.7 Management of significant natural areas which provides for human enjoyment while protecting habitat and environmental values for generations to come


The order of magnitude cost estimate of the project in 2015 was $5.1M (P10) and it should be noted that the final scope may change this figure significantly.

The City has previously applied for RDAF funding in 2011 and 2012, which were unsuccessful due to the limited regional reach.

OFFICER COMMENTS

The ability to access treated waste water for irrigation purposes on sporting fields would significantly decrease the City’s reliance on bore water.

This would enable the City to redirect bore licence allocations to more strategic uses within the Bunbury Geographe Region subject to a critical review of all areas and using modern landscaping practices and water efficiency practices.

The Department of Water is progressing the South West non-potable water supply project and Waste Water has been identified as the second highest scoring option in the project.



Project Overview

Wastewater Re-use


Contained in SCP






DESCRIPTION

To facilitate the establishment of a Water playground at Skyes Foreshore.

OBJECTIVES

Improvement to the character, amenity of the area.

Provision of regional wet and dry play area as an alternative to the ocean.


The Leschenault Inlet Master Plan (LIMP) originally identified Koombana South as an area to develop a water playground.

The City developed detailed designs for the water playground, to assist with seeking funding.

Following a number of attempts to secure funding for the water playground, it ultimately proved an unviable project to attract significant funding to enable the project to proceed as proposed.

The project scope has changed to be a joint venture with a commercial partner to be constructed at Skyes Foreshore.



Objective 3.7 - Management of significant natural areas which provides for human enjoyment while protecting habitat and environmental values for generations to come.


The City is currently negotiating a PPP (Public Private Partnership) for the provision of a water playground at Skyes Foreshore.

The City currently has a $1M allocation in the LTFP to facilitate the construction of the water playground, dry playground, toilets, car parking and lighting.

OFFICER COMMENTS

The City and its partners are in the process of producing a design for the water playground at Skyes Foreshore.

The design is based on the 2014 consultation report and detailed plans produced by Josh Byrne and Associates.

This concept is linked to a proposed long term lease of the Koombana Caravan Park.



Project Overview

Water playground


Contained in SCP






DESCRIPTION

To participate in an Urban Renewal Program for Withers to deliver the outcomes of the Withers Urban Renewal Strategy and the Withers Local Area Plan.

OBJECTIVES

Work with key stakeholders including the Bunbury Development Committee, Department of Communities and the SWDC to see urban renewal in Withers

To facilitate appropriate community, landowner and resident participation


The Withers Urban Renewal Strategy was adopted at the 21 May 2013 Council Meeting. The Withers Local Area Plan was adopted at the 8 March 2016 Council Meeting.



Goal 3.3 – High quality urban design, well planned neighbourhoods with Housing choice, and appropriate provision for diverse land uses to meet the community’s needs.


As part of the MOU agreement the City committed $300,000 to the project this is accounted for in the current budget. SWDC committed $600,000.

The Department of Communities have spent funds on delivering the planning framework including the Structure Plan and LDP’s in addition to acquiring land and upgrading existing housing stock.

The full cost of the Withers Urban Renewal Program is yet to be costed and will require considerable State and private partnership funding

OFFICER COMMENTS

In 2012, the South West Development Commission and the City of Bunbury began the development of an Urban Renewal Strategy for Withers.

The aim was to deliver a community and place-led approach to an Urban Renewal Program for the area, resulting in a comprehensive community and government owned action plan for the development of the Withers.

The document ‘Withers Urban Renewal Strategy – A Village in the City’ was widely work-shopped in the Withers community, receiving some 350 submissions. This document established the vision and developmental objectives for the neighbourhood.

Work soon began to implement a range of short term place-making initiatives and developing business cases to secure funding for the larger projects. In 2015, a framework for the Withers Urban Renewal Program was devised through collaboration between the City, the SWDC and Department of Communities to produce the Withers Local Area Plan.

The Local Area Plan translates the Strategy into a spatial plan that will inform the next stage of structure planning for redevelopment sites, improvements to road and pathway networks and the upgrading of infrastructure services.



Project Overview

Withers


Contained in SCP



Previous Budget Scoped TBC



DESCRIPTION

Conduct community consultation and scoping for new Youth Facilities including a potential new or refurbished and expanded skate park following community interest and advocacy.

OBJECTIVES

To identify the need, potential location and plans for a Youth Precinct and develop plans for a Youth Precinct within Bunbury.


At the Council meeting of April 2018, Council supported the planning and community consultation elements of the proposed new skate park and allocated $50,000 to this investigation in the 18/19 budget.



Objective 1.6 - A community provides for the particular needs of the young and old


The cost of constructing and maintaining a Youth Precinct is unknown at this stage and will be dependent on the scoping study and preferred concepts. The current $50,000 budget allocation will be used to determine activities to be included and the budget required to develop the selected area.

Any budget estimate would rely on being able to attract additional grant funding from either State or Federal sources. Currently most grant funding opportunities rely on a 50/50 contribution and are aimed at economic development and job creation.

For the project to progress funds need to be allocated to undertake project planning works such as community consultation, site investigation, concept design development, detail design, tender documentation, business case development and have the project “shovel ready” to make grant applications.

OFFICER COMMENTS

Very low levels of interest in the development of a Youth Precinct or skate park were demonstrated in the 2017 Youth Survey.

The proposal started as a request for a new skate park but has developed beyond this into a Youth Precinct which may have a variety of activities included in the one area.

There are a number of highly-regarded Perth-based com-panies skilled in target audience consultation and Youth Precinct/skate park design, including Skate Sculpture and Convic.

For Council to consider the project on its merits further investigative works need to be undertaken to allow for the project scope and budget to be identified.

The Works & Services and Corporate & Community Services Directorates will co-manage the scoping process.



Project Overview

Youth Facilities


Contained in SCP






Appendix DWS-1

Appendix DWS-2

BUNBURY REGIONAL ART GALLERIES

GOVERNANCE REVIEW 2015 - RESEARCH AND DISCUSSION

September 2015

Overview

Australian regional and public art galleries and museums vary considerably according to

their local conditions and histories of evolution but all have a common purpose which is to

exhibit, interpret and promote Australia’s tangible and intangible culture and in particular

the culture of their region. Most regional art galleries and museums have the additional and

complementary purpose of caring for, researching, interpreting and promoting a collection.

Staff are guided by an established international code of museum practice which identifies

them as the custodians of cultural objects and their stories on behalf of their communities

and sets rigorous standards of care. Governance of regional art galleries and museums must

also be mindful of the disciplines of established museum practice but should primarily seek

to support, develop and promote their institutions.

Research undertaken

This desk top research project first identifies the key advantages and challenges which arise

from regional art galleries operating within local government structures and secondly

identifies a number of leading regional art galleries and their governance structures. The

report is based on a review of governance documents and related conversations with arts

administrators and local government officers with responsibility for regional art galleries

including representatives from the Department of Culture and the Arts, the Art Gallery of

Western Australia, Art on The Move, The Public Galleries Association of Victoria and the City

of Greater Bendigo. It also draws on the expertise of the City’s Manager Community, Arts

and Culture (also the Director of BRAG) who has more than thirty years of arts

administration experience both within, and outside of, local government.

Findings

A 2014 survey of National Public Galleries carried out by the Public Galleries Association of

Victoria received 45 responses from regional and metro galleries. Under the category ‘legal

structure of organisations’ the responses were as follows:

local government owned and operated: 33

incorporated association: 9

company limited by guarantee: 2

independent trust: 1

Appendix MoN-1

Local Government management brings with it the benefits of being part of the larger

organisation in terms of support and advice from financial, human resources, risk

management, contracts, building maintenance, parks and gardens and other departments.

Where a gallery is fully integrated into a local government department there are also

opportunities for mutually beneficial collaborations with other council work units and

departments which arguably would be harder to achieve, though not impossible, if the

gallery was external to Council.

It should be noted, however, that some of the most successful galleries which make major

contributions to their local community and economy have structures in place which, rather

than full integration, provide a degree of independence from their local government

authority which can also enable independent fundraising and community support. This is

significant because while not incompatible with the objectives of local government, regional

galleries are rarely identified as “core business”. As a result, when economies must be made

and asset planning priorities are set they can, at times, be considered a discretionary

function. This situation can inhibit development and limit potential for alignment with some

external funding opportunities.

When galleries are seen by the community as static and without a consistent plan to develop

their facilities and levels of amenity, this can generate the further effect of discouraging

potential donations and bequests because donors do not feel confident that their donations

will be afforded the care and attention that they would wish.

A further issue which arises when galleries are embedded as a business unit within local

government is that in the eyes of potential sponsors and supporters they are perceived as

already being adequately provided for which in turn may mean they are ineligible for some

grants and funding programs and may result in community resistance to making donations

and giving support.

Another important consideration identified when speaking to local government officers with

responsibility for leading regional galleries is that for a gallery to excel and develop its full

potential it is essential to have entrepreneurial leadership focussed on core gallery activities.

Positive public and stakeholder perceptions are vital to the success of regional galleries.

Achieving this requires courageous and innovative community engagement fostering a

strong and positive brand image built on clearly demonstrated economic and social impact.

Examples of other Gallery structures

Bendigo

The Bendigo Art Gallery is owned and managed by the City of Greater Bendigo within a

Council department called ‘City Futures’. City Futures was established twenty years ago –

with the deliberate aim of making art the point of difference for Bendigo. City Futures has

responsibility for Major Projects; Economic Development; Tourism; Destination Marketing;

Bendigo Art Gallery; Major, Community and Civic Events; The Capital – Bendigo’s Performing

Arts Centre; Bendigo Town Hall; Bendigo Exhibition Centre and Bendigo Airport. This very

deliberate, long-term strategy ensures stability and direction for the gallery. City Futures

actively seeks and secures funding to assist the development of arts and economic

development.

Bendigo Art Gallery is now widely regarded as the leading example of a regional gallery

which has achieved a national profile and in parallel has taken a leading role in increasing

attraction and driving economic growth for the city. In 2008, following a number of years

spent developing curatorial capacity and relationships Bendigo began programming

international exhibitions, beginning with The Golden Age of Couture from London’s Victoria

& Albert Museum which attracted 75,000 visitors. As this ambitious program has continued,

gallery facilities have undergone several major redevelopments and the collection has grown

to become one of the best in the country.

Bendigo Art Gallery has an independent trust rather than a board, which concentrates on

raising funds for acquisitions and also supports development of the ambitious exhibitions

program which has been so successful in making Bendigo a prominent arts destination.

(see attached Melbourne Age article)

Ballarat

The Art Gallery of Ballarat is the oldest and largest regional gallery in Australia and is home

to an art collection of major significance. The gallery is a not-for-profit company limited by

guarantee of which the Ballarat City Council is the sole shareholder. It is governed by an

eleven member Board of Directors (including the City’s CEO) who are directly responsible for

the Gallery’s day-to-day operations. Gallery staff are employed by the Council but the

structure enables the gallery to have a degree of independence from Council.

The Art Gallery of Ballarat Foundation was established in 1998 as a Charitable Fund for the

future benefit of the Gallery. The main aim of the Foundation is to establish a substantial

capital endowment to earn sufficient income to assist the Gallery with specific projects or

acquisitions.

Shepparton

Shepparton Art Museum (SAM) is owned and managed by the City of Greater Shepparton.

SAM is supported by an Advisory Committee which oversees acquisitions into the collection

and provides support to the Art Museum Director.

The SAM Foundation Board is a company limited by guarantee and its purpose

is to undertake a significant capital drive for a new expanded Art Museum and to grow funds

to benefit the SAM collection and program. The SAM Foundation has deductible gift

recipient status which provides opportunity for SAM in generating greater philanthropic

giving and thereby increasing its capacity to exhibit greater quality works. It is a repository

for gifts and bequests made for the long-term benefit of SAM and the broader community.

(see attached ArtsHub article)

http://www.bfagfoundation.org.au/

Examples of arts facilities with independent Boards

In WA examples of independent management of arts facilities are performing arts centres

such as the Bunbury Regional Entertainment Centre and the Mandurah Performing Arts

Centre. Both have independent boards managing facilities owned and maintained by

Council. Council approves board appointments and has one elected member on the Board.

Mandurah also has a senior council executive on their board. Significantly this structure

ensures that the Centres have independence in terms of marketing and programming

decisions and can structure staffing to suit the very particular needs of a performing arts

centre.

Council would be aware that the Stirling Street Arts Centre also runs with a Board and an

operating subsidy from the City.

In discussing governance models with a wide range of people for this report, one necessary

factor for successful governance arose consistently, i.e. the need for a high level of trust and

a shared vision to be established and maintained between the agencies/stakeholders

involved in that governance. This is essential if any structure is to succeed in enabling a

regional art gallery to realise its full potential.

Art Gallery of Western Australia AGWA comments

In response to a draft of this report AGWA Deputy Director Brian Stewart stated:

“In your paper ‘Bunbury Regional Art Galleries Governance Review’ you provide good

examples of what makes for a successful regional gallery.

The recommended model is very similar to the state gallery model of statutory authorities.

The proposed model benefits both from the support provided by local government and the

independence which can assist the gallery to attract funding and grow.

AGWA’s strongly supports developing a governance structure which provides the

community with a sustainable regional gallery which contributes to the social and

economic vitality of the region. As you note, this can only be achieved through a long-term

strategy which ensures the gallery stability and clear direction.

The paper sets out a good case for the recommendation and its benefits.”

Attachment 1

Attachment 2

city of bunbury council notice of agenda briefing and minutes/archives 2018... · 13 november 2018...

Documents