annual report - shire of esperance · advantages and disadvantages arising out of local government...

ANNUAL REPORT

1998/99

NORTH WARD

EAST WARD

WEST WARD

TOWN WARD

Cr Julie Starcevich Cr Tony Ietto, CD

Cr Ian Mickel, JP SHIRE PRESIDENT

Cr Wayne Rodgers

Cr Miles Cattle, Deputy Shire President

Cr Joe Rszyk

Cr Allan Timmins

Cr Lawrie Shaw

Cr Elaine Siemer

Cr Tony Bright

Cr Louise Paterson

Cr Ron Padgurskis

Cr Beverley Stewart

PRESIDENT’S REPORT

Council has continued to provide quality services and facilities throughout this challenging year despite the devastating floods and fires endured by the community early in 1999. Council has honoured its commitment to improved recreational facilities by commissioning the reconstruction of the Aquatic and Recreation Centre. We look forward to this facility opening in February 2000. As well, services to the community in Television and Radio services have become a priority issue in addressing some of the social needs that our community faces being relatively isolated. Council has continued to support Educational and Learning opportunities through the commitment of $216,000 to the Esperance Community College. In recognising the needs of persons travelling to and from Esperance, Council has also provided a major upgrade of the Airport Terminal buildings, which will greatly improve passenger comfort and flight operations as passenger numbers continue to grow. The appointment of Michael Archer as Chief Executive Officer in January 1999 has enabled Council to proceed with its Corporate restructure. The appointment of an Executive Management team on performance based contracts is destined to provide the Council with professional advice and enhanced accountability in the management of community resources. At the May Council Elections we bade farewell to Councillors Trevor Burleigh, Ray Crocker, Christine Smith and George Starcevich and welcomed Tony Bright, Beverley Stewart, Elaine Siemer and Ron Padgurskis. All Councillors are committed to good governance and, along with the Executive Management team, have put in place procedures for the development of strategic and forward planning which will identify and implement the community visions. This process will carry Esperance forward as a progressive and autonomous community caring for its people and the environment. Community input into this process is seen as a priority of Council in ensuring that our community develops a vision for Esperance’s future. On behalf of Council, I express my sincere appreciation to the many volunteers, community groups and Government departments for their assistance and support received during the year. In addition, the assistance of the Lotteries Commission, the Home and Community Care program and Main Roads WA is recognised and appreciated. Without the assistance of these and other agencies the Shire would be unable to provide the level of services and facilities expected by our ratepayers. CR I S MICKEL, JP SHIRE PRESIDENT

Shire of Esperance Statistics

Distance from Perth 725km Area 42,250sqkm Length of Sealed Roads 710km Length of Unsealed Roads 3,241km Population 12,800 Number of Electors 7,997 Number of Dwellings 4,788 Total Rates levied $5,000,000 Number of Employees 138

Local Industries

Grain/ cereal growing Beef Wool/ fat Lambs Cattle

Fishing Fish Processing Superphosphate Works Tourism

Port Salt Works Abattoir Light Industry Winery Bulk Petroleum Storage

Cottage Crafts Cement Works

Esperance Bay, from Dempster Head

CHIEF EXECUTIVE OFFICER Since arriving in January 1999, and assuming management control from caretaker Chief Executive Officer, Mr Brett Spencer, I have set about implementing Council’s direction for a restructured organisation. This planning will enable Council to enter the new millennium with a focus and a process to meet the changing demands of this rapidly developing community. Unfortunately, the loss of key staff during this transitional period has caused a severe depletion of skills and experience within the organisation. Despite these losses, the workforce has rallied and provided support for the restructuring program which has seen the traditional structure of CEO, Deputy CEO and line managers, reorganised to the CEO and four executive managers with the autonomy to manage their own departments. We have commenced developing a framework of new management policies and strategic planning which will continue throughout the next reporting year. Our objective is to build a strong and efficient organisation that is responsive to community needs. Council has set us the challenge of achieving its mission, "to be a leader in the provision of local government services and to aspire to diversify economic activity throughout the Shire while increasing the quality of life". Financially, the Shire has performed well. Despite floods and fires over the 1998/99 summer period, Council staff were still able to complete the works program within budget. A modest surplus was carried forward into the next financial year. The 1999/2000 financial year will see many challenges to management. Not the least of which is the further loss of key staff. David Pope, Manager: Building Services and Barry Sponberg, Principal Planner who will be terminating their services at the end of 1999 to pursue private concerns. I thank them for their commitment and dedication to the organisation over a great many years. As a result the restructuring program will enter a second phase whereby the importance of financial planning has been recognised by the appointment of an Executive Manager of Financial Services. A new coordinated approach to building, health and planning will be introduced through the appointment of an Executive Manager of Development Services. Council has also entered into a forecast cash deficit budget of $207,000 in order to fund the new Recreation and Aquatic Centre and other infrastructure development. Staff will be forced to monitor spending and take advantage of any revenue raising opportunities to draw back this deficit so as not to restrict capital improvements in future years. In closing, I thank all of Council staff for their efforts over the past year and I look forward to the community, Councillors and staff working together to achieve positive outcomes to create a healthy environment for everyone into the future. Michael S L Archer CHIEF EXECUTIVE OFFICER

o Financial Management

Budget Audit Rates

o Information Technology o Payroll o Purchasing o Grants Management o Human Resources

EXECUTIVE MANAGER DEVELOPMENT SERVICES

Vacant

EXECUTIVE MANAGER CORPORATE AND

COMMUNITY SERVICES Rod Hilton

EXECUTIVE MANAGER FINANCIAL SERVICES

Paul Breman

Corporate & Community Services Committee

ESPERANCE SHIRE COUNCIL President – Cr Ian Mickel

o Town & Regional Planning

o Health o Environmental o Asset Management o Property Management

o Community Development Home & Community Care Volunteer Management

o Ranger Services o Library & Information Svcs o Human Resources o Administration Services o Customer Services o Recreation Services

Engineering & Development Services

CHIEF EXECUTIVE OFFICER Michael Archer

Cr A Ietto Cr I Mickel Cr R Padgurskis Cr J Raszyk Cr W Rodgers Cr B Stewart Cr E Siemer

Cr A Bright Cr M Cattle Cr I Mickel Cr L Paterson Cr L Shaw Cr J Starcevich Cr A Timmins

EXECUTIVE MANAGER ENGINEERING SERVICES

Michael Kahler

o Roadworks o Drainage o Infrastructure Mgmt o Parks & Gardens o Plant & Equipment o Airport o Cemetery

Executive Management Team

Chief Executive Officer Executive Manager –

Corporate & Community Services

Executive Manager – Engineering Services

Executive Manager – Development Services

Executive Manager –Financial Services

Mike Archer Rod Hilton Michael Kahler Vacant Paul Breman

Manager, Health & Environmental Services

Manager – Building Services

Manager – Planning Services

Manager – Recreation Services

Simon di Rosso David Pope Ellen Gude Cam Robbins

CORPORATE AND COMMUNITY SERVICES The Corporate and Community Services Department is the most diverse department within Council. It provides administrative support to the entire organisation as well as community services for the aged, disabled and general community, library services, recreation services and ranger services. Administrative Services The administrative services section is responsible for the interpretation and implementation of all standards pertinent to local government to ensure the organisation meets its statutory obligations. Statutory Procedures & National Competition Policy A review of tenders, policies and local laws was commenced to ensure Council’s compliance with all relevant Acts. This process will continue into the Year 2000.

National Competition Policy Statement The Competition Principles Agreement is an intergovernmental agreement between the Commonwealth and State/ Territory Governments that sets out how government will apply National Competition Policy Principles to public sector organisations within their jurisdiction. The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The provisions of Clause 7 of the Competition Principles Agreements require Local Governments to report annually as the implementation, application and effects of Competition Policy. In accordance with the requirement of the National Competition Policy the Shire of Esperance undertook the following initiatives during 1998\99: Activity Based Costing Activity based costing was incorporated into the Council budget and annual financial statements ie. Allocation of administration to works and services.

Competitive Neutrality Review Under competitive neutrality, all Western Australian councils, which have significant business activities that have an annual income from fees in excess of $200,000, must report on the benefits and costs of removing competitive advantages and disadvantages arising out of local government ownership. (ie. Sales tax, Land tax, Income tax and Payroll tax exemption, rates exemption on land etc) The Esperance Airport was the only activity that required to be reported on under competitive neutrality, other areas such as the rubbish collection services are contracted out and are therefore exempt from reporting. Council employed the services of Local Government Consultant, Mr John Crothers, to undertake the initial assessment of competitive neutrality on the Esperance Airport.

The recommendations of the review were adopted by Council. • Competitive neutrality should be implemented by removing all competitive

advantages accruing to the airport from Local Government ownership. • The competitive disadvantages should be retained such as inflexibility in

employment conditions. • Airport prices should be maintained at their current level but reviewed

annually as part of a competitive neutrality update. Action should be taken to ensure that there is close to an annual surplus on operations after Council’s competitive advantages and disadvantages have been taken into account. Based on an annual rate of return of 7% this should result in $126,000 per annum.

• Council is free to determine which of these payments should be retained in the Airport Reserve Account. Council is free to structure the financial arrangements of the Airport as it sees fit.

• A benchmarking process should be established. Landing fees at other regional airports should be considered as part of the annual review of charges.

• The community should be kept informed of changes to the airport finances resulting from the implementation of competitive neutrality.

Refer Note 30 of Financial Report for details of Airport Income & Expenditure. Complaints: Council has received no complaints regarding competitive neutrality.

Review of Local Laws Section 3.16(1) of the Local Government Act 1995 requires that within a period of eight (8) years from the day when a local law commenced or a report of a review of the local law was accepted under the section, as the case requires, a local government is to carry out a review of the local law to determine whether or not it should be repealed or amended to comply with the principals of National Competition Policy. The following local laws have been repealed:

Local Law Repealed Government Gazette Publication Date

General 18th September 1914 Poundage Fees 18th September 1914 Poundage 22nd March 1946 Discount on Rates 31st August 1923 Hawkers 5th September 1924 Hawkers 2nd June 1939 Esperance Town Jetty, Foreshore & Bathing Houses 25th March 1937 Appointment of Employees 1st May 1942 Fencing 14th June 1946 Building 20th August 1948 Minimum Areas of Buildings 24th September 1948 Keeping of Bees 7th January 1949

Parking 9th March 1951 Parking 11th June 1954 Holiday Accommodation 21st November 1986 Motels 23rd July 1962 Prevention of Damage to Streets 1st September 1965 Removal of Refuse 7th February 1963 Sick Leave 28th December 1967 Street Verandahs 26th February 1965 Storage of Inflammable Liquid 3rd December 1963

A formal review of the remaining local laws as follows, will be undertaken during 1999/2000 and recommendations on possible amendments or repeal action submitted for Council consideration as this process continues.

Aerodromes Animal in Streets and Public Places Bush Fire Brigades Control of Hawkers Dogs Dog Kennels and the Keeping of Dogs Eating Houses Esperance Public Cemetery Extractive Industries Fencing Food Vending Machines Health Model By-laws Series “A” Keeping of Bees Long Service Leave Management and Control of the Bay of Isles Leisure Centre (formerly Esperance Recreation Centre) Numbering of Houses and Buildings Old refrigerators and Cabinets Parking Facilities Parking of Commercial Vehicles on Street Verges Pest Plants Private Swimming Pools Removal and Disposal of Obstructing Animals or Vehicles Safety, Decency, Convenience and Comfort of Persons in Respect of Bathing Signs, Hoardings and Bill Postings Snack Bars

Agendas and Minutes Council’s agendas and minutes system was streamlined to enable timely compilation and presentation of agendas and minutes in accordance with the Department of Local Governments best practise model. Records Management Due to management restructuring, implementation of records management has been deferred until 1999/2000.

Community Services During 1998/99 foundations were laid to enable forward and strategic planning to commence to enable community services to become more responsive to ratepayers’ needs. Residents already have access to home and community care services, youth services and local community based arts, sports and recreation services.

During the year, two exchange students were sent from Esperance to Isle de Ré as part of the exchange program in conjunction with the Esperance Lions Club. Council officers where also involved in the successful application to host the Regional Arts Australia National Conference which will take place in November 2000.

Year 2000 Projects Council established the Year 2000 Advisory Committee to consider projects to commemorate the turn of the Century. Projects identified to commemorate the turn of the Century and the Centenary of Federation include an artwork for the Post Office Square Wall and a shade shelter structure on the foreshore at James Street. It is envisaged that these projects will be completed during the year 2000.

Community Arts and Activities Grants Shire of Esperance allocated $15,000 towards the Community Arts and Activities Grants scheme during 1998/99. This funding was utilised by various community groups including: • The Cannery Arts Centre • The Bay Music Club • The Esperance Music Festival Committee • The Festival of the Wind Committee

Esperance Youth Advisory Council This Council was established in June 1998 by the Shire of Esperance and the Office of Youth Affairs, to advocate for and voice the opinions of young people. The Urban Art Program has been a main focus of the Youth Advisory Council since June 1999, and will be completed in February 2000. The Program is aims to eradicate graffiti vandalism and enhance the Adventureland Skate Park ramp with Artwork by local youth. Funding has also been obtained to install a Gazebo/ barbecue area to further enhance the facility and encourage family use, in the hopes of combating any antisocial behaviour.

Other activities undertaken by officers of the Community Services Department include: coordination of Clean Up Australia Day, support of the Salmon Gums entry into the Tidy Towns Competition, involvement in the Community College development, preparation of displays for the Esperance Agricultural Society Show and State Landcare Conference, and the formation of the Esperance Cemetery Advisory Committee.

Members have attended: the YAC Annual Conference, Youth Affairs Council of WA Annual Conference, WA Rural Foundations for Leadership course, Johnson & Johnson 7th Annual Young Leaders Conference and are delegates to the following community groups/communities: Local Drug Action Group, Esperance Suicide Prevention Taskforce, Adventureland Park Management Committee and JPET (Job Placement, Employment and Training) Steering Committee.

Home and Community Care Esperance Home and Community Care for the elderly continues to receive accolades from recipients and is a benchmark service for the rest of the State. Manager, Thuriyya Ibrahim, has expanded the service beyond in-home care to also involve the social and recreational needs of seniors. Esperance HACC won the 1997/98 Seniors Exceptional Organisation Award and has been awarded runner up in the 1998/99 Seniors Exceptional Organisation Award. Ms Ibrahim was the recipient of the individual 1998/99 Seniors Award of Excellence. Currently Esperance HACC services 320 residents.

Highlights: fundraising for the Esperance Community Nursing Home and involvement with Esperance Home Care in a number of activities; being instrumental in the establishment of the Naval Reserve Cadets Unit; and, lobbying the Minister for Youth for a permanent part-time Youth Development Officer for Esperance.

Adventureland Park Skate Park

Esperance Home Care staff

Volunteer Resource Centre This new program commenced in March 1999 under the management of Michelle Clarke. Its objective is to place volunteers into health and family care services. The service provides information and support to volunteers and agencies working with volunteers, operates a referral service, keeps an up-to-date register of vacant volunteer positions available within local community agencies, and matches volunteers needs to the positions, allowing informed choice and support to enter into volunteering. Esperance Volunteer Resource Centre offers training and education to enhance skills and opportunities for volunteers and agencies working with volunteers and also trains agencies in their responsibilities towards volunteers. Highlights: Official opening of the service on 4 May 1999; commencement of Volunteer Referral Service and Community Education and Training workshops; involvement in statewide National Volunteer Week activities. Esperance Volunteer Resource Centre is one of only four (4) regional Volunteer Resource Centres in Western Australia, and is one of the most remote and rural centres in Australia. Disability Services Planning The Community Services Department has the responsibility of preparing and implementing the Esperance Disability Service Plan which outlines the future strategic direction that Esperance will take to facilitate the identification and addressing of barriers experienced by people with disabilities when accessing Council services. During this year the Committee advocated, on behalf of people with special needs, to obtain better access to Australia Post, Westrail and other service agencies. Library Services Council’s library and information service managed by Jayne Arnold continues to provide for the recreational reading needs of the community. Council also contributed $100,000 towards development of a technical library in conjunction with the construction of the Esperance Community College. The Esperance Public Library and Information Service continues to be well utilised with loans of 114,654 from July 1998 to June 1999. This compares favourably with loans of 112,670 in the previous financial year. The Library and Information Service continues to be heavily used by people of all ages in the community for a wide variety of reasons. Highlights: Installation of the new circulation desk. Hosting international author Tim Severin. Increased use of the public access Internet/ word processing facility and installation of an Internet connection at the circulation desk for reference information. Development of a foreign language collection comprising of books, cassettes, videos and CDs. Increased usage by primary school classes. Rising numbers of library volunteers, allowing the enhancement of services provided by the library and meeting a growing demand for local history and community information.

Esperance Municipal Museum – Archives The Esperance Municipal Museum was extended to include an archives room to house the many valuable documents relating to the history of Esperance. The archives room was officially opened on Tuesday, 6th April 1999, by the Esperance Shire President, Councillor Ian Mickel. Council archivist, Mrs Pam De Grussa and many volunteers have been working continuously to catalogue and archive the materials collected for the archive room. Recreational Services The Shire of Esperance has stood by its commitment to provide residents with a range of first class recreational facilities by embarking on a major upgrade of the Esperance Recreation and Aquatic Centre. The new centre will boast a 25-metre pool, a family lagoon with water slide, a gymnasium, childcare facilities and an indoor court area. The project will cost approximately $4,000,000 and will be opened early 2000. Council also hosted a Civic Reception for the Flying 15’s World Sailing Championships in conjunction with the Esperance Bay Yacht Club during February 1999 bringing together competitors from around the world, thereby enhancing Esperance’s reputation as a premier sailing venue. The Premier, Mr Richard Court, attended and opened the event. Construction of a boat ramp on the foreshore at a cost of $193,000 was commenced and the James Street swimming jetty, complete with a water slide at a cost of $206,000 was constructed to provide a safe beach swimming area within the Esperance townsite. Council further catered for the youth of Esperance by constructing a skateboard facility on the foreshore, $33,000, and by its program of continuous improvement to playgrounds, $30,000. A further $4,000 was made available to sports clubs through Council’s minor grants program and $47,000 was granted to arts and cultural projects.

Community Sporting & Recreation Facilities Fund The Shire of Esperance assisted various organisations with a funding contribution towards projects approved under the Community Sporting & Recreation Facilities Fund. Organisations assisted include: • The Esperance Football & Sporting Club • The Esperance Golf Club • The Esperance Speedway Association • The Salmon Gums Pistol Club Council also received $4,000 towards undertaking the Esperance Strategic Leisure Plan.

Growing community concern over Council’s future plans for the Library has accelerated with the funding of the new Community College Library (Left), however, Council’s Strategic Planning process later this year will give the community an opportunity to advise on future Library services for the Shire of Esperance.

Ranger Services The implementation of animal control and coastal management programs has challenged Council’s ranger services. Dog Control During the year 256 dogs were impounded. Unfortunately 89 impounded dogs were destroyed because of owners’ failure to act responsibly. Coastal Management Basic management control of coastal reserves has become a full time job for the ranger department as increasing numbers of campers seek remote campsites. Ranger Brian Warren’s involvement in development of the Lake Monjingup environmental area has become a local showpiece.

Tourism Council invested $100,000 in the promotion and marketing of Esperance as a tourist destination of which $30,000 maintains the local tourism information centre. Licensing Agency Following the transfer of licensing services from the Police Department to the Department of Transport, Council agreed to provide an agency for processing drivers, vehicle and shooters licenses. The Esperance Agency handles the State’s highest volume and is one of the more efficient with in excess of $1,000,000 of transactions each year.

9 Mile beach rehabilitation works

Lake Monjinup reserve (left)

BUILDING

Major capital works for the year 1999 have been the upgrade of Council’s Recreation Centre and Airport Terminal. Recreation Centre Works commenced in April 1999 for the upgrade of the $3,353,280 project. Devaugh Pty Ltd of Bunbury was the successful tenderer and works are progressing within budget and due to be completed in January 2000.

Many variations to the contract have been experienced due to works on an existing building. The community should be well pleased with the completed project.

Airport Terminal Perth company Brown & Joy Industries was the successful tenderer to carry out upgrade works on the Council owned Airport Terminal. The project value is $505,040 and again the community will be pleased with the completed project due for completion in December 1999.

Building Activity June 30th, 1999 saw a total of 159 new residential buildings approved. For the commencement of the 99/2000 year, the months of July, August, September saw only 27 new residential approvals as compared to 38 for the same period in 1998/99.

Should this indication continue, Council will see a reduction in approvals for the current year ,however, with the impending GST provisions on the building trade, there should be a dramatic increase in the near future.

Below: Concept drawing, Recreation Centre

Above: Staff oversee construction.

The project should be opened to the public in February 2000.

Below: Airport Terminal building under construction

TOWN PLANNING It has been a busy and productive year on the town planning front. Planning consents have increased over those of the previous year and Council has commenced the statutory process required to review the provisions of the local planning scheme. A number of group dwelling developments have been approved and implemented and developers are taking advantage of Strata Titles legislation by erecting a “second” dwelling on 1,000 sqm lots (¼ acre) within established residential areas. This desired form of urban consolidation utilises existing infrastructure and in the long term provides a financial saving for the overall community. An improvement and variety in housing design is very evident and this is no more demonstrated than in the Dempster Heights subdivision. The last stage of this estate was auctioned at Easter 1999 and there was a very keen demand. Activity in the commercial and industrial sectors has been very encouraging. A commercial building in Dempster Street has been completed and 2 office buildings are to be commenced shortly in Dempster and Windich Streets. A number of industrial sheds have been completed and CBH has developed its large site on the corner of Harbour Road and the South Coast Highway. The town centre remains generally void of vacant premises and the number of use approvals offered indicates an optimistic outlook for the retail sector. Subdivision approvals have been constant and offered landowners the opportunity to realise the full potential of their sites. Council’s Small Rural Holdings Areas project was gazetted and this will satisfy the demand for farmlets for the foreseeable future. In October Council will commence the design process for its land holding between Ormonde Street and Bandy Creek Boat Harbour. Council is in the process of reviewing its planning scheme in order to ensure that it caters for the needs of the community. Naturally enough all proposed zoning alterations will be subject to intense public participation. The draft Goldfields-Esperance Regional Planning Strategy was completed and was on public exhibition until August 1999. It is presently being finalised. The less prominent aspects of the planning system continue to be great time consumers. These include liaison with State Government Departments, enquiries, committee memberships, appeals, answering correspondence and general clerical work. As legislation becomes more complex and procedures more complicated these mundane areas will eat further into the time available for genuine planning projects. Due to the increasing workload Council employed a second town planner for a probationary period of 6 months after which time the position will be re-assessed. Overall it has been a successful year from the town planning point of view. The present development trend shows no signs of appreciably decreasing and with this being controlled by Council’s planning scheme and policies, should result in satisfactory development within the Shire.

HEALTH AND ENVIRONMENTAL SERVICES The Environmental Health Department is currently structured as follows:-

Manager Environmental Health Services – Simon Di Rosso Environmental Health Officer – Jaala Downes Environmental Health Officer – Natasha Thompson (maternity leave) During the year of 1998/1999 this department has been involved in issues such as the renewal of the Shire’s rubbish / refuse contract with the previous contractor submitting the successful tender thereby securing the term of 5 years (commencement 1st July 1999) with a 5 year option. The rubbish service and disposal contractor has provided excellent service during this term. Recycling services within the Esperance Shire have slumped over the last two years, however the prospects in this area are becoming more positive with a potentially beneficial offer of low cost transport of materials now being investigated. The Environmental Health Department controls several contracts such as:-

Meat Inspection Services Based at the Shark Lake Abattoir a contract, that over the period previously specified has run effectively and diligently, especially with a strict HACCP plan and regular auditing. This contract is currently due for renewal. Wylie Bay Landfill Site A contract is in place for the management and control of this site. Regular audits are undertaken via annual reporting and is relayed to the Department of Environmental Protection. Current licensing conditions of this site have been the focus of some recent scrutiny as the site reached its 50% life stage.

The Environmental Health Department oversees five further, unmanned rural landfill locations, with conditions from the Department of Environmental Protection becoming stricter each year. This department’s other major focuses are:-

• Notifiable Disease Monitoring – with current trends over the last three years indicating a rise in notifications representing both an increase in community awareness and communication.

• Shire Water Sampling – Monitoring of the towns reclaimed water, public use, and private use recreational / consumable supply.

• Noise monitoring.

• Complaint Action / Response – largely increasing with community awareness.

• Building / Plumbing – in the area of both inspection and legislative control / assistance to the Shire’s building department.

• With the tourist season now in force this department’s major objective is to ensure all food, accommodation, entertainment and recreational premises are in compliance with all relevant legislation.

ANNUAL REPORT – 1998/1999 SHIRE OF ESPERANCE HEALTH & ENVIRONMENTAL SERVICES

• Environmental Department

The primary role of this department is to protect the environment by monitoring, investigating complaints and advising the Council where development may create adverse environmental impact.

Current initiatives in the environmental field are:-

i) The proposition to the community via Council that the Esperance Archipelago be considered for Marine Park status, thereby creating an environmental strategy that will allow both commercial and recreational activities to continue while preserving the natural environment for generations to come through strict planning and control.

ii) Submission of an application to Coast Care for the purpose of securing a

$25,000 grant to assist in the employment (contract based) of an Environmental Planner. The main objective being to provide a document detailing the planning and management of the Esperance Coastal Region for the next 20 years.

The Environmental Department aims to raise community awareness of coastal management issues, both current and future through development of clear pathways and set access to beaches, reducing access to previously undisturbed sites. This department essentially undertakes strategic planning, development control and community liaison / communication with the aim of environmental protection.

West Beach Connection Trails, extending from West Beach to

Salmon Beach

Foreshore Renourishment Program 1999

ENGINEERING SERVICES The 1998/1999 financial year comprised one of the most challenging years to date for Council’s Engineering Department. The Engineering Department undertook works on roads, drainage, parks and gardens, depot facilities, recreational facilities, coastal and marine reserves and the airport. The 1998/1999 budget showed an increase in capital works projects constructed with a similar allocation of maintenance funding to the previous year. Some major areas of resource allocation are detailed as follows:- Regional Road Group Funding Council prepared a detailed five (5) year plan detailing road construction and preservation strategies for the Goldfields Esperance Regional Road Group to consider. Submissions from all Councils in the Goldfields Esperance region are made to the Regional Road Group in order to rank priority projects, which will receive funding from the annual $1.3million State Government funding allocation. Esperance Shire Council’s allocation increased from $330,000 (1997/1998) to $441,000 (1998/1999). This rising trend has continued into the current financial year. Bayview Subdivision Council designed and constructed an exclusive 12 lot development off John Street with scenic ocean views. The subdivision, due to the significant earthworks component, required an innovative design and strict quality control during construction. The development was constructed below the budget allocation for the project and lot sales exceeded expectations. Foreshore Development The long awaited James Street Swimming Jetty and Foreshore Boat Ramp were constructed on the Esperance foreshore. The cost of constructing the foreshore boat ramp was reduced by approximately 50% when compared to previous tender bids by utilising Council Engineers, plant and labour, with support from local contractors. Despite set backs from unusually high tides and bad weather; both projects were completed very close to budget estimates. Black Street Deviation The construction of Esperance’s new Aquatic Centre resulted in the need for a realignment of Black Street and the construction of a roundabout. A meandering horizontal alignment of the new road was introduced for the first time in Esperance in order to limit vehicle speeds. Airport Operations The passenger numbers to Esperance airport continued to grow through the year at a rate of approximately 8% per annum. Plans for the terminal extensions were developed and tendered for construction.

Bushfires and Flooding The 1998/1999 financial year was an exceptional year in terms of natural disasters with severe bushfires in the eastern region of the Shire prior to Christmas 1998 and severe flooding in January 1999. The floods in particular resulted in a large allocation of resources in order to impose road closures, carry out emergency drainage works and commence the rebuilding process of roads and drainage infrastructure destroyed by flood waters. The western and central regions of the Shire were worst affected with a total reinstatement cost in the order of $1million. Approximately 60% of this amount was funded under the MRWA Special Funding for Flooding scheme. Despite the additional workload imposed on Council by the flood reinstatement works, Council’s regular works program was completed on time and on budget. As Council embarks on the strategic planning process, there will be a continued focus on the improvement of facilities in all Shire townsites and road infrastructure. The Engineering Department will focus on the development of technological resources to improve asset management, such as the Geographical Information System and Pavement Management System development. Master Plans will be prepared for the Esperance Aerodrome and Esperance townsite drainage infrastructure. The Engineering Department was restructured early in 1998/1999 Michael Kahler was appointed as Executive Manager Engineering Services and Mr Rick Miller commenced duties with the Department as Council’s Technical Officer for the town area later in the year.

Official opening of the James St Swimming Jetty

Bay View Subdivision, John Street

PRINCIPAL ACTIVITIES Report on the Principal Activities commenced or continued during the financial year (LGA S.5.54(2)(d) and proposed to commence or continue into the next financial year (LGA.S.5.54(2)(e). ACTIVITY – Administration General Factors influencing this activity during the year include: Termination payment to previous Chief Executive Officer Legal costs associated with termination of previous CEO Increased insurances Additional bank fees due to increased incidence of credit card payments Introduction of cash transport security Under budgeted telephone expenses Additional lease costs of office equipment Building modifications to accommodate restructured staffing

arrangements These factors resulted in a 19% increase in administration costs during the year. Approximately 50% of this over-expenditure will be recurrent in future years and will be included in subsequent Principal Activity Plans. A staff “Climatic Survey” indicated that no serious staff issues exist and services are satisfactory. The following activities are proposed to commence in the next financial year: Review of Council Policies and Local Laws and Procedures, Strategic Planning, Centralisation of records systems, Implementation of a complaints register.

ACTIVITY – Fire Prevention Council continued to service its commitment to support the Volunteer Bushfire Brigades by providing support funding matched by the Bush Fire Service for the replacement of fire fighting vehicles and equipment. Summer bush fires fire fighting added to the cost of this program this year. This program is ongoing. The following activities are proposed to commence in the next financial year: The program of plant and equipment upgrading is ongoing each year.

ACTIVITY – Home & Community Care Services Council has accepted an ongoing obligation to sponsor this Federal Government funded program to enable aged, frail and persons with disabilities and their carers to remain as independent persons in their own homes. Expenditure increased 14% over the estimated amount in line with an increase of over 50 years of age

residents comprising 44% of the population growth over the past 7 years. The entire program is government funded. The following activities are proposed to commence in the next financial year: The provision of HACC services continues to expand and will include

Meals on Wheels ACTIVITY – Library Services Basic recreational book lending services continue to be provided by the Council library. During the year Council decided to contribute $100,000 to the Esperance Community College Library. It was originally proposed that development of the Community Library may result in relocation of the Public Library to the new premises. This option was not considered during the year. Council participates in the WAMA benchmarking bureau and annual statistics comparing libraries are published in LISWA. The following activities are proposed to commence in the next financial year: Operation of the Council library is an ongoing commitment of the Council. A financial contribution of $100,000 will be made to the Esperance

community College joint library 1999/2000. ACTIVITY – Meat Inspection Services The contracted meat inspection service is an ongoing service provided by Council under the auspices of its health department. Costs are met by abattoir fees and charges. The following activities are proposed to commence in the next financial year: This service is contracted out and provided on an annual basis.

ACTIVITY – Waste Collection and Disposal Successful negotiations of contracted waste removals and increasing new properties collections ensure that this program is cost effective and efficient. Surplus proceeds are preserved in a Reserve Fund for future waste disposal requirements. A benchmarking review has identified Council as being competitive with other Councils. Benchmarking Practice Bureau: Benchmarking Practice 86cents/service; Esperance $1.15/service The following activities are proposed to commence in the next financial year: This service is contracted out and provided on an annual basis. Action taken to support development of a livestock vehicle wash down

bay include liaison with the local Abattoir.

ACTIVITY – Asset Acquisition and Replacement Council continues to update and replace machinery and equipment in order to maintain a modern and efficient workplace. The computer systems support officer in conjunction with senior staff will pursue options for a rolling five (5) year Integrated Technology Replacement Program. The Shire Accountant will continue to investigate leasing options for furniture, fittings and computer hardware requirements. A plant replacement program has been adopted by Council. The following activities are proposed to commence in the next financial year: Council has an annual plant equipment and machinery replacement

program, which is reviewed each year. ACTIVITY – Airport Operations Council operates the airport in accordance with Civil Aviation Authority standards. Operating costs are funded from airport passenger charges and any surplus is placed into Reserve Funds for future upgrade works. The proposed terminal building extensions were not commenced as forecast and have been deferred to the 1999/2000 financial year. A satisfactory report by CAA on the annual safety and facilities inspection was received. The following activities are proposed to commence in the next financial year: Terminal extensions will be completed during 1999/2000 and

investigations commenced into runway tarmac strengthening and extensions.

ACTIVITY – Marine Structures/Foreshore Development The Esperance Foreshore boat ramps and the Bandy Creek Boat Lifter and hardstand area were completed during 1998/99. An ongoing sand renourishment program jointly funded by the Department of Transport was continued to protect footpaths and park infrastructure along the Esperance foreshore. It is now proposed that a consultant be appointed in 1999/2000 to recommend a permanent solution to this beach erosion problem. Tanker Jetty maintenance and protection from marine worm attack is an ongoing commitment of Council to retain this important tourism attraction. An annual inspection of the Tanker Jetty in conducted to ensure that the maintenance program is being implemented and upgrade requirements addressed. Stage 1 of the James Street swimming jetty was completed with the construction of a right angle jetty with a water slide, swim platform and safety rails. It is proposed that the jetty will be progressively extended back to the beach to provide an enclosed swimming area.

The following activities are proposed to commence in the next financial year: Beach erosion will be ongoing with a consultant to be appointed to try and

achieve a permanent solution. The Tanker Jetty will continue to be preserved as a premier recreational

facility within the townsite. Further studies will be conducted next year on the selection of a site for

another boat launching facility between Esperance and Israelite Bay. ACTIVITY – Recreation Facilities Parks and Gardens are being maintained according to accepted Council standards. Children’s playgrounds development is continuing annually. Of significance is the redevelopment of the Esperance Aquatic Recreation Centre. Work on this $4 million project commenced during 1998/99 and will be completed in 1999/2000. The following activities are proposed to commence in the next financial year: Reconstruction of the Esperance Aquatic Recreation Centre will be

completed in December 1999 and opened to the public in February 2000. The appointment of a Recreation Centre Manager will facilitate a coordinated approach to the recreational services offered by Council.

ACTIVITY – Road Asset Management Council has an ongoing program on maintaining roads, drains, kerbs and footpaths. Despite road damages caused by floods during the summer period, the road program was completed. The following activities are proposed to commence in the next financial year: Council has in place a five (5) year road construction program which may

be inspected at Council'’ Engineering Department The re-alignment of the Esplanade Deviation will be completed over two

(2) financial years commencing 1999/2000 and incorporates an extended carparking proposal.

ACTIVITY – Major Land Transactions 1. The Dempster Heights sub-division was completed and 10 lots of

residential land auctioned. Sale proceeds part funded the Esperance Recreation Centre refurbishment. Dempster Heights – sale of the land by auction for a price equal to or exceeding the reserve price. The land sales were budgeted to return $357,000. On finalisation of this project with the last two lots selling in October 1999, project costs and earnings were: Total Sales (12 lots) $1,081,500 Development and sales Costs $ 323,600 Profit on sales $ 756,900 The profit is being used to assist in financing the Recreation and Aquatic Centre.

2. Princess Street development was again deferred whilst property owners

were co-opted to finalise financing of this private road construction. The majority of owners have now committed funding and the project is scheduled to commence in 1999/2000.

Princess Street development – provision of fully serviced lots to the satisfaction of the majority of landholders within the agreed timetable on a full cost recovery basis. Negotiation with landowners is continuing. Following a public meeting held 15 September 1999, pledges totalling $162,426 have been received from lot owners. Council has budgeted $25,000, leaving a shortfall of $16,072 towards the total project cost of $203,498.

3. Johns Street Development Area No. 3 has been deferred due to difficulties over multiple ownership of land.

4. Esperance Port Authority – Phillips Street land, Council has commenced acquisition of land to be held for recreation purposes. Acquisition is staged over 5 years.

5. CBD parking – additional car parking requirements still in planning stage. The following activities are proposed to commence in the next financial year: Investigations and planning for development of the No. 13 Ormonde

Street subdivision (Castletown Quays extension) will commence during 1999/2000.

ACTIVITY – General Business District Development 1. The Esplanade deviation – roadworks to realign the beachfront Esplanade

deferred to commence 1999/2000 with completion during 2000/2001. Carparking requirements are planned in this project.

2. Redesign of the CBD Post Office Square is still in the planning stage. Works on public art to commence during 1999/2000.

The following activities are proposed to commence in the next financial year: The Post Office Square mural wall is expected to be completed by 30th

June 2000. A Centenary of Federation Sail shade Shelter has been designed and is

proposed to be constructed on the foreshore at the James Street swimming jetty.

FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 1999

OPERATING STATEMENT BY ACTIVITY

Revenue $15,601,2530%

21%

33%

1%1%4%0%7%

5%

14%

3%

10%1%

Governance

General Purpose Funding

Rates

Law, Order & Public Safety

Health

Education & Welfare

Housing

Communtiy Amenities

Recreation & Culture

Transport

Economic Services

Other Property & Services

Change in Net Assets

Expenditure $15,601,2535%

2%3%5%

8%

11%

58%

3% 4% 1%

0%

Governance

General Purpose Funding

Law, Order & Public Safety

Health

Education & Welfare

Housing

Communtiy Amenities


Transport

Economic Services

Other Property & Services

SHIRE OF ESPERANCE

FINANCIAL REPORT

FOR THE YEAR ENDED 30TH JUNE 1999

TABLE OF CONTENTS

Statement by Responsible Employee 2

Operating Statement 3

Statement of Financial Position 4

Statement of Changes in Equity 5

Statement of Cash Flows 6

Notes to and Forming Part of the Financial Report 7 to 40

Independent Audit Report 41 to 42

Page 1

SHIRE OF ESPERANCE

FINANCIAL REPORT


LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

STATEMENT BY RESPONSIBLE EMPLOYEE

The attached financial report of the Shire of Esperance being the annual financial report and

other information for the financial year ended 30th June 1999 are in my opinion properly drawn

up to present fairly the financial position of the Shire of Esperance at 30th June 1999 and the

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

Accounting Standards (except to the extent that these have been varied in the Statement of

Accounting Policies required by Australian Accounting Standards AAS6 "Accounting Policies"

and the accompanying notes to the annual financial report) and comply with the provisions of

the Local Government Act 1995 and regulations under that Act.

Signed on the Second day of December, 1999

__________________________

M S L Archer

Chief Executive Officer

Page 2

SHIRE OF ESPERANCE

OPERATING STATEMENT


NOTE 1999 1999 1998

$ Budget $

$

OPERATING REVENUES

Governance 74,806 46,050 73,674

General Purpose Funding 8,288,167 8,171,886 7,975,715

Law, Order, Public Safety 101,772 117,850 121,318

Health 226,284 238,135 240,930

Education and Welfare 687,974 554,179 608,441

Housing 0 0 0

Community Amenities 1,036,832 995,081 745,349

Recreation and Culture 769,046 884,138 623,132

Transport 2,178,901 1,341,234 1,616,852

Economic Services 401,285 298,286 217,633

Other Property and Services 1,615,030 460,600 625,467

TOTAL OPERATING REVENUE 2 15,380,097 13,107,439 12,848,511

OPERATING EXPENSES

Governance 741,197 1,427,761 1,357,808

General Purpose Funding 194,377 0 0


Health 396,837 368,260 347,288

Education and Welfare 815,022 571,263 610,367

Housing 10,300 10,604 11,610

Community Amenities 1,265,155 1,167,097 1,020,419

Recreation & Culture 1,712,696 1,366,393 1,247,569

Transport 9,185,272 8,403,586 8,537,913


Other Property and Services 563,020 96,532 181,828

TOTAL OPERATING EXPENSE 2 15,601,253 13,933,205 13,675,778

CHANGE IN NET ASSETS

RESULTING FROM OPERATIONS (221,156) (825,766) (827,267)

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

Page 3

SHIRE OF ESPERANCE

STATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE 1999

NOTE 1999 1998

$ $

CURRENT ASSETS

Cash 3 5,470,127 4,989,818

Receivables 4 684,755 508,412

Stock on Hand 5 121,197 142,610

TOTAL CURRENT ASSETS 6,276,079 5,640,840

CURRENT LIABILITIES

Creditors and Provisions 9 1,276,612 543,492

Borrowings 10 250,608 341,166

TOTAL CURRENT LIABILITIES 1,527,220 884,658

NET CURRENT ASSETS 4,748,859 4,756,182

NON-CURRENT ASSETS

Receivables 4 872,845 828,907

Works in Progress 6 872,057 0

Property, Plant and Equipment 7 28,096,043 26,662,524

Infrastructure 8 100,099,514 102,640,014

TOTAL NON-CURRENT ASSETS 129,940,459 130,131,445

NON-CURRENT LIABILITIES

Creditors and Provisions 9 181,336 44,271

Borrowings 10 1,009,415 1,123,633

TOTAL NON-CURRENT LIABILITIES 1,190,751 1,167,904

NET ASSETS 133,498,567 133,719,723

EQUITY

Accumulated Surplus 114,255,047 114,691,627

Reserves - Cash Backed 12 4,329,203 4,113,779

Reserves - Asset Revaluation 11 14,914,317 14,914,317

TOTAL EQUITY 133,498,567 133,719,723


Page 4

SHIRE OF ESPERANCE

STATEMENT OF CHANGES IN EQUITY


NOTE 1999 1998

$ $

ACCUMULATED SURPLUS

Balance as at 1 July 1998 114,691,627 116,544,408

Change in Net Assets Resulting

from Operations (221,156) (827,267)

Transfer from/(to) Reserves 12 (215,424) (1,025,514)

Balance as at 30 June 1999 114,255,047 114,691,627

RESERVES - CASH BACKED

Balance as at 1 July 1998 4,113,779 3,088,265

Amount Transferred (to)/from

Accumulated Surplus 215,424 1,025,514

Balance as at 30 June 1999 12 4,329,203 4,113,779

RESERVES - ASSET REVALUATION

Balance as at 1 July 1998 14,914,317 0

Adjustment on recognition of revaluation 0 14,914,317

of Buildings

11 14,914,317 14,914,317

TOTAL EQUITY 133,498,567 133,719,723


Page 5

SHIRE OF ESPERANCE

STATEMENT OF CASH FLOWS


NOTE 1999 1999 1998

$ Budget $

Cash Flows From Operating Activities $

Receipts

Rates 4,950,373 4,972,029 4,707,537

Grants and Subsidies - operating 3,970,104 3,544,883 4,191,851

Contributions, Reimbursements & Donations 1,968,632 640,540 689,387

Fees and Charges 1,996,702 1,945,117 1,954,441

Interest Earnings 352,464 249,619 278,279

13,238,275 11,352,188 11,821,495

Payments

Employee Costs (3,244,026) (2,819,046) (2,627,031)

Materials and Contracts (3,204,208) (2,448,490) (2,716,510)

Utilities (gas, electricity, water, etc) (289,426) (34,970) (84,202)

Insurance (205,065) (203,368) (203,368)

Interest (141,950) (181,639) (173,324)

Other (441,781) (768,647) (689,816)

(7,526,456) (6,456,160) (6,494,251)

Net Cash Provided By

Operating Activities 13(b) 5,711,819 4,896,028 5,327,244

Cash Flows from Investing Activities

Payments for Development of

Land Held for Resale (320,615) (356,500) 0

Payments for Purchase of

Property, Plant & Equipment (4,071,468) (4,599,906) (2,329,627)

Payments for Construction of

Infrastructure (3,607,540) (4,921,998) (3,067,380)

Grants and Contributions for

the Development of Assets 962,166 1,292,664 168,839

Proceeds from Sale of

Plant & Equipment 2,018,576 1,852,200 1,483,248

Net Cash Used In Investing Activities (5,018,881) (6,733,540) (3,744,920)

Cash Flows from Financing Activities

Repayment of Loans (343,776) (341,165) (472,628)

Advances to Community Groups (139,000) 0 (67,000)

Proceeds from Self Supporting Loans 131,147 139,459 187,489

Proceeds from New Loans 139,000 185,000 67,000

Proceeds from Finance Leases 0 0 0

Net Cash Used In Financing Activities (212,629) (16,706) (285,139)

Net Increase (Decrease) in Cash Held 480,309 (1,854,218) 1,297,185

Cash at Beginning of year 4,989,818 4,957,173 3,692,633

Cash at End of Year 13(a) 5,470,127 3,102,955 4,989,818


Page 6

SHIRE OF ESPERANCE

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT


1. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies which have been adopted in the preparation of this financial

report are:

(a) Basis of Accounting

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

with applicable Australian Accounting Standards (except for the departure allowed by legislation

relating to infrastructure assets noted below) and the Local Government Act 1995 (as amended)

and accompanying regulations. The report has also been prepared on the accrual basis under

the convention of historical cost accounting.

(b) The Local Government Reporting Entity

All Funds through which the Council controls resources to carry on its functions have been

included in the financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balances

between those funds (for example, loans and transfers between Funds) have been eliminated.

All monies held in the Trust Fund are excluded from the financial statements, but a separate

statement of those monies appears at Note 19 to this financial report.

(c) Infrastructure Assets

Infrastructure (eg roads, drainage, parks & ovals etc) constructed or acquired since 1st July 1995

has been capitalised and recorded in the statement of financial position. In accordance with the

transitional provisions of the Local Government Act 1995 (as amended) and accompanying

regulations, Council elected to defer recording the value of all infrastructure in the statement of

financial position until 30th June 1997.

Future revaluations of infrastructure are reflected in the asset revaluation reserve.

(d) Land Held for Resale

Land purchased for development and/or resale is valued at the lower of cost and net realisable

value. Cost includes the cost of acquisition, development and interest incurred on the financing

of that land during its development. Interest and holding charges incurred after development is

complete are recognised as expenses.

Revenue arising from the sale of property is recognised in the operating statement as at the time

of signing a binding contract of sale.

Page 7

SHIRE OF ESPERANCE



1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Depreciation of Non-Current Assets

All non-current assets having a limited useful life are systematically depreciated over their useful

lives in a manner which reflects the consumption of the future economic benefits embodied in

those assets.

Depreciation is recognised on a straight-line basis, using rates which are reviewed each reporting

period. Major depreciation periods are:

Buildings 30 to 50 years

Furniture and Equipment 5 to 10 years

Motor Vehicles not depreciated

Roadmarking Plant 5 to 8 years

Other Plant & Equipment 3 to 10 years

Sealed roads and streets

clearing and earthworks not depreciated

construction/road base 50 years

original surfacing and

major re-surfacing

- bituminous seals 20 years

- asphalt surfaces 25 years

Gravel roads



gravel sheet 12 years

Formed roads (unsealed)



Footpaths - slab 10 to 20 years

Jetties 15 to 50 years

Water supply piping & drainage systems 50 years

(f) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership

of the asset, but not legal ownership, are transferred to the company, are classified as finance

leases. Finance leases are capitalised recording an asset and a liability equal to the present

value of the minimum lease payments, including any guaranteed residual value. Leased assets

are amortised over their estimated useful lives. Lease payments are allocated between the

reduction of the lease liability and the lease interest expense for the period.

Lease payments under operating leases, where substantially all the risks and benefits remain

with the lessor, are charged as expenses in the periods in which they are incurred.

Page 8

SHIRE OF ESPERANCE




(g) Investments

All investments are valued at cost and interest on those investments is recognised when accrued.

(h) Employee Entitlements

The provisions for employee entitlements relates to amounts expected to be paid for long service

leave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries and Annual Leave

The provision for employees’ entitlements to wages, salaries and annual leave represents the

amount that the municipality has a present obligation to pay resulting from employees services

to balance date. The provision has been calculated at nominal amounts based on current wage

and salary rates and includes related on-costs.

(ii) Long Service Leave

The provision for employees’ entitlements for long service leave represents the present value of

the estimated future cash outflows to be made by the employer resulting from the employees'

service to balance date.

(i) Rates, Grants, Donations and Other Contributions

Rates, grants, donations and other contributions are recognised as revenues when the local

government obtains control over the assets comprising the contributions. Control over assets

acquired from rates is obtained at the commencement of the rating period or, where earlier, upon

receipt of the rates.

Where contributions recognised as revenues during the reporting period were obtained on the

condition that they be expended in a particular manner or used over a particular period, and those

conditions were undischarged as at the reporting date, the nature of and amounts pertaining to

those undischarged conditions are disclosed in Note 2(d). 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 operation for the current reporting period.

(j) Superannuation

The Shire of Esperance contributes to the Local Government Superannuation Scheme and the

Occupational Superannuation Fund. Both funds are defined contribution schemes.

Page 9

SHIRE OF ESPERANCE




(k) Interest Rate Risk

The Shire's exposure to interest rate risk, which is the risk that a financial instrument's value will

fluctuate as a result of changes in market interest rates, is considered negligible for all financial

instruments other than borrowings. Information on interest rate risk as it applies to borrowings

is disclosed in Note 21.

(l) Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at

balance date to recognised financial assets is the carrying amount, net of any provisions for

doubtful debts, as disclosed in the statement of financial position and notes to and forming

part of the financial report. The Shire does not have any material credit risk exposure to any

single debtor or group of debtors under financial instruments entered into by the Shire.

(m) Net Fair Values

The net fair value of assets and liabilities approximate their carrying values. No financial assets

and financial liabilities are readily traded on organised markets in standardised form. Financial

assets where the carrying amount exceeds net fair values have not been written down as the

Council intends to hold these assets to maturity.

The aggregate net fair value and carrying amounts of financial assets and financial liabilities are

disclosed in the statement of financial position and in the notes to and forming part of the

financial report.

(n) Rounding Off Figures

All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the

nearest dollar.

(o) Comparative Figures

Where required, comparative figures have been adjusted to conform with changes in presentation

for the current financial year.

Page 10

SHIRE OF ESPERANCE



2. OPERATING REVENUES AND EXPENSES 1999 1998

$ $

(a) The change in net assets from operations was

arrived at after:

(i) Charging as Expenses:

Depreciation

Buildings 407,099 394,020

Furniture and Equipment 92,443 129,256

Plant and Equipment 432,729 361,966

Construction other than Buildings 89,454 36,131

Roads 5,745,838 5,661,198

Lighting 4,269 2,993

Footpaths 80,094 74,944

Parks and Reserves 290,018 287,158

Drainage 28,950 28,840

Pipes 108,763 107,120

Other 4,375 0

Tourist Signs 126 0

Airport 38,957 38,739

Parking 8,133 2,505

7,331,248 7,124,870

Interest Paid

- Loans 136,458 165,939

136,458 165,939

Rental Charges

- Operating Leases 3,963 0

(ii) Crediting as Revenues: 1999 1999 1998

$ Budget $

$

Interest Earnings

Investments

- Reserve Funds 182,360 129,619 144,878

- Other Funds 111,462 120,000 133,401

Other Interest Revenue 29,321 0 0

323,143 249,619 278,279

Page 11

SHIRE OF ESPERANCE



2. OPERATING REVENUES AND EXPENSES (Continued)

(b) Operating Revenues and Expenses 1999 1998

Classified According to Nature and Type $ $

Operating Revenues

Rates 4,997,069 4,715,914

Grants and Subsidies - operating 4,096,007 4,191,851

Grants and Subsidies - non-operating 999,666 168,839

Contributions Reimbursements and Donations 1,741,529 872,952

Profit on Asset Disposals 967,228 666,235

Fees and Charges 2,255,455 1,954,441

Interest Earnings 323,143 278,279

15,380,097 12,848,511

Operating Expenses

Employee Costs 3,498,898 2,585,227

Materials and Contracts 3,574,499 2,742,357

Utilities (gas, electricity, water, etc) 297,151 84,202

Depreciation on Non-current Assets 7,331,248 7,124,870

Loss on Asset Disposals 116,153 83,023

Interest 136,458 165,939

Insurance 205,065 203,368

Other 441,781 686,792

15,601,253 13,675,778

Page 12

SHIRE OF ESPERANCE




(c) Statement of Objective

In order to discharge its responsibilities to the community, the Shire has developed a set of

operational and financial objectives. These objectives have been established both on an overall

basis and for each of its broad activities/programs.

Council operations as disclosed in this budget encompass the following service orientated

activities/programs:

SHIRE MISSION STATEMENT

To be a leader in the provision of local government services and to aspire to diversify economic activity

throughout the shire while increasing the quality of life.

GOVERNANCE

Objective : To provide a decision making process for the efficient allocation of scarce resources.

Activities : Includes the activities of members of council (Councillors) and the administrative support services

available to the Council for the provision of governence of the district. Other costs relate to the

tasks of assisting elected members and ratepayers on matters which do not concern

specific council services.

GENERAL PURPOSE FUNDING

Objective : To collect revenue to allow for the provision of services.

Activities : Rates, general purpose government grants, and interest revenue.

LAW, ORDER, PUBLIC SAFETY

Objective: To provide services to help ensure a safer and environmentally conscious community.

Activities : Supervision and enforcement of various local laws relating to fire prevention, animal control,and

protection of the environment, and other aspects of public safety including beaches and emergency services.

HEALTH

Objective: To provide an operational framework for good community health.

Activities : Inspection of food outlets and their control as well as provision of meat inspection

services, noise control, and waste disposal compliance.

EDUCATION AND WELFARE

Objective: To provide sevices to disadvantaged persons, the elderly, children, and youth.

Activities : Maintenance of child minding centre, playgroup centre, senior citizens centre, and aged care

centre. Provision and maintenance of home & community care programs and youth support services.

HOUSING

Objective: To provide and maintain elderly residents' housing.

Activities: Provision and maintenance of elderly residents housing.

COMMUNITY AMENITIES

Objective : To provide services required by the community.

Activities : Rubbish collection services, operation of rubbish disposal sites, litter control, construction and

maintenance of urban storm water drains, protection of the environment, and administration of town

planning schemes, cemeteryand public conveniences.

Page 13

SHIRE OF ESPERANCE




(c) Statement of Objective (Continued)

RECREATION AND CULTURE

Objective : To establish and effectively manage infrastructure and resources which will help the social

wellbeing of the community.

Activities : Maintenance of public halls, civic centre, aquatic centre, beaches, recreation centres,

and various sporting facilities. Provision and maintenance of parks, gardens, and playgrounds.

Operation of library, museum and other cultural facilities.

TRANSPORT

Objective : To provide safe, effective, and efficient transport services to the community.

Activities : Construction and maintenance of roads, streets, footpaths,depots, cycleways,parking facilities

and traffic control.Cleaning of streets and maintenance of street trees, street lighting etc.

Provision and operation of airport

ECONOMIC SERVICES

Objective: To help promote the shire and it's economic wellbeing.

Activities : Tourism and area promotion including the maintenance and operation of a caravan park.

Provision of rural services including weed control, vermin control, and standpipes. Building control.

OTHER PROPERTY & SERVICES

Objective: To monitor and control Council's overheads operating accounts.

Activities : Private works operation, plant repair and operation costs, and engineering operation costs.

1999 1998

$ $

(d) Conditions Over Contributions

Grants which were recognised as revenues during the

reporting period and which had not yet been expended

in the manner specified by the contributor.

Rural Roads Grant 144,951 0

Volunteer Mgment Prog Govt Grant 6,005 0

HACC Contrib Govt Grant 5,000 0

HACC Donations 4,000 0

Cascade Dam Water upgrade Grant 34,000 0

Monjingup Park Grant 1,400 0

Hydrotherapy Pool 7,750 0

Radio Triple JJJ Installation 4,891 0

Aerodrome Terminal Development 9,173 0

217,170 0

Grants which were recognised as revenues in the previous

reporting period and which were expended in the current

reporting period in the manner specified by the contributor. Nil Nil

Page 14

SHIRE OF ESPERANCE



1999 1998

$ $

3. CASH

Unrestricted 923,754 876,039

Restricted - Reserve Account 4,329,203 4,113,779

Restricted - Other 217,170 0

5,470,127 4,989,818

The following restrictions have been imposed by

regulations or other externally imposed requirements:

Reserves:

Land Purchase & Development Reserve 414,335 408,340

Council Buildings Construction Reserve 1,936,082 1,860,107

Aged Persons Hostel Reserve 422,060 441,430

Eastern Suburbs Water Pipeline Reserve 14,106 13,498

Jetty Reserve 45,362 109,649

Aerodrome Reserve 1,047,913 881,933

Salmon Gums Quarry Reserve 18,646 17,842

Municipal Museum Reserve 16,663 12,068

Condingup TV Repeater System Reserve 1,172 2,102

Civic and Cultural Centre Reserve 10,137 7,691

Meat Inspection Services Reserve 27,211 26,038

Off Street Parking Reserve 8,154 2,061

Sanitation (Rubbish Removal) Services Reserve 17,701 25,502

HACC Programme Reserve 6,731 21,751

Caravan Park Sewerage Reserve 24,982 23,905

Gravel Resources Compensation Reserve 39,177 44,797

Southern Suburbs Water Supply Reserve 19,473 18,633

The Esplanade Road Deviation Reserve 156,959 102,346

Boat Lifter Reserve 1,120 30,146

Casade Hall Reserve 397 380

Scaddan Hall Reserve 414 396

Condingup Community Centre Reserve 101 96

Historical Village Reserve 11,887 11,374

Plant Replacement Reserve 88,420 51,694

Sub Total Reserves 4,329,203 4,113,779

Other Restricted Cash:

Unspent Grants and Donations 217,170 0

4,546,373 4,113,779

Page 15

SHIRE OF ESPERANCE



1999 1998

$ $

4. RECEIVABLES

Current

Rates Outstanding 66,195 46,923

Rubbish Charges 2,068 3,366

Sundry Debtors 470,425 338,324

Provision for Doubtful Debtors 0 0

Self Supporting Loan Debtors 146,067 119,799

684,755 508,412

Non-Current

Pensioner Rates Outstanding 13,301 13,906

Self Supporting Loans:

WAWA Sewerage Loans 204,775 291,524

EBYC Breakwater 50,712 66,334

Esperance Squash Club 33,938 41,677

Esperance Tennis Club 26,335 29,870

Esperance Surf Life-Saving Club 33,367 35,157

Pink Lake Country Club 192,976 195,223

Esperance Indoor Sports Stadium 95,000 95,000

Gibson Football Club 26,915 23,986

Esperance Kart Club 33,000 36,230

Esperance Netball Club 11,552 0

Esperance Football Club 27,349 0

Esperance Speedway Club 22,095 0

Condingup District Recreation Assoc 38,850 0

Newton Football Club 46,236 0

Esperance Theatre Guild 16,444 0

872,845 828,907

5. STOCK ON HAND

Roadmaking Materials 103,663 128,735

Fuel and Oils 17,534 13,875

121,197 142,610

Page 16



1999 1998

$ $

6. WORKS IN PROGRESS

Recreation Centre 810,719 0

Airport Terminal 61,338 0

872,057 0

7. PROPERTY, PLANT AND EQUIPMENT

Land and Buildings - Cost 4,161,483 3,757,450

At independent valuation 1998 19,128,500 19,128,500

Less Accumulated Depreciation (1,714,241) (1,307,140)

21,575,742 21,578,810

Furniture and Equipment - Cost 229,608 217,311

Less Accumulated Depreciation (176,101) (150,401)

53,507 66,910

Office Equipment - Cost 888,754 851,593


329,163 306,952

Other Furniture & Equipment - cost 488,533 479,483


94,837 110,654

Other Plant and Equipment - Cost 799,181 649,599


530,995 433,836

Motor Vehicles - Cost 845,102 815,263


737,602 701,088

Construction other than Buildings - Cost 1,678,124 951,774


1,394,052 757,155

Road Making Plant - Cost 5,472,971 5,212,797


3,380,145 2,707,119

Total Property, Plant and Equipment 28,096,043 26,662,524

SHIRE OF ESPERANCE

Page 17



1999 1998

$ $

8. INFRASTRUCTURE

Roads - Management Valuation 1997 187,187,764 187,187,764

Roads - Cost 5,900,949 2,756,641


90,549,598 93,151,127

Footpaths - Management Valuation 1997 2,231,722 2,231,722

Footpaths - Cost 312,174 78,592


2,073,546 1,920,058

Drainage - Management Valuation 1997 1,153,585 1,153,585

Drainage - Cost 8,829 0


508,833 528,954

Culverts & Pipes - Management Valuation 1997 4,253,838 4,253,838

Culverts & Pipes - cost 131,514 61,884


1,894,715 1,933,848

Parks & Ovals - Management Valuation 1997 5,720,786 5,720,786

Parks & Ovals - Cost 185,112 44,751


3,345,771 3,495,428

Street Lighting- Management Valuation 1997 66,561 66,561

Street Lighting - Cost 76,630 46,646


133,247 107,532

Tourist Road Signs - Management Valuation 1997 1,620 1,620

Tourist Road Signs - Cost 3,115 2,044

Less Accumulated Depreciation (258) (132)

4,477 3,532

SHIRE OF ESPERANCE

Page 18



1999 1998

$ $

8. INFRASTRUCTURE (Continued)

Esperance Airport - Management Valuation 1997 1,374,760 1,374,760

Esperance Airport - Cost 33,111 0


1,291,436 1,297,282

Parking - Cost 169,016 75,223


158,378 72,718

Other - Management Valuation 1997 137,051 137,051

Other - Cost 15,952 1,599


139,513 129,535

Total Infrastructure Assets 100,099,514 102,640,014

The valuations of the municipality’s infrastructure were based on the written down replacement cost

performed in accordance with Statement of Accounting Practice SAP 1 "Current Cost Accounting".

Council does not currently have a policy for periodic revaluation of infrastructure.

SHIRE OF ESPERANCE

Page 19



1999 1998

$ $

9. CREDITORS AND PROVISIONS

Current

Sundry Creditors 824,543 182,644

Accrued Interest on Loans 12,595 26,950

Provision for Annual Leave 318,725 162,808

Provision for Long Service Leave 120,749 171,090

1,276,612 543,492

Non Current

Provision for Long Service Leave 181,336 44,271

181,336 44,271

10. BORROWINGS

Current

Loans 250,608 341,166

Non-Current

Loans 1,009,415 1,123,633

TOTAL BORROWINGS 1,260,023 1,464,799

Additional detail on borrowings is provided in Note 21.

11. ASSET REVALUATION RESERVES - NON-CASH

Buildings

Opening Balance 14,914,317 0

Increment 0 14,914,317

Decrement 0 0

Closing Balance 14,914,317 14,914,317

SHIRE OF ESPERANCE

Page 20



1999 1999 1998

$ Budget $

$

12. RESERVES - CASH BACKED

(a) Land Purchase & Development Reserve

Opening Balance 408,340 408,340 390,042

Amount Set Aside / Transfer to Reserve 58,896 18,375 18,298

Amount Used / Transfer from Reserve (52,901) (64,000) 0

Closing Balance 414,335 362,715 408,340

(b) Council Buildings Construction Reserve

Opening Balance 1,860,107 1,860,107 1,143,712


Amount Used / Transfer from Reserve (757,046) (1,199,108) (51,392)

Closing Balance 1,936,082 1,204,376 1,860,107

(c) Aged Persons Hostel Reserve

Opening Balance 441,430 441,430 449,192


Amount Used / Transfer from Reserve (38,748) (5,605) (28,835)

Closing Balance 422,060 455,689 441,430

(d) Eastern Suburbs Water Pipeline Reserve

Opening Balance 13,498 13,498 11,169

Amount Set Aside / Transfer to Reserve 608 607 2,329

Amount Used / Transfer from Reserve 0 0 0

Closing Balance 14,106 14,105 13,498

(e) Jetty Reserve

Opening Balance 109,649 109,649 85,632


Amount Used / Transfer from Reserve (89,229) (120,000) 0

Closing Balance 45,362 14,583 109,649

(f) Aerodrome Reserve

Opening Balance 881,933 881,933 678,997


Amount Used / Transfer from Reserve (90,514) (489,000) (2,825)

Closing Balance 1,047,913 594,680 881,933

(g) Salmon Gums Quarry Reserve

Opening Balance 17,842 17,842 32,588

Amount Set Aside / Transfer to Reserve 804 401 1,529

Amount Used / Transfer from Reserve 0 (16,312) (16,275)

Closing Balance 18,646 1,931 17,842

(h) Municipal Museum Reserve

Opening Balance 12,068 12,068 8,167

Amount Set Aside / Transfer to Reserve 5,925 543 7,619

Amount Used / Transfer from Reserve (1,330) 0 (3,718)

Closing Balance 16,663 12,611 12,068

SHIRE OF ESPERANCE

Page 21



1999 1999 1998

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

$

(i) Condingup TV Repeater System Reserve


Transfer to Reserve 95 95 150

Transfer from Reserve (1,025) (1,000) (1,244)


(j) Civic and Cultural Centre Reserve


Transfer to Reserve 5,305 5,347 5,234

Transfer from Reserve (2,858) 0 (2,543)


(k) Meat Inspection Services Reserve

Opening Balance 26,038 26,038 24,871


Transfer from Reserve 0 0 0

Closing Balance 27,211 27,210 26,038

(l) Off Street Parking Reserve


Transfer to Reserve 6,093 93 93



(m) Sanitation (Rubbish Removal) Services

Opening Balance 25,502 25,502 47,989




(n) HACC Programme Reserve

Opening Balance 21,751 21,751 10,020

Transfer to Reserve 980 13,104 11,731

Transfer from Reserve (16,000) (10,000) 0


(o) Caravan Park Sewerage Reserve

Opening Balance 23,905 23,905 22,834



Closing Balance 24,982 24,980 23,905

(p) Gravel Resources Compensation Reserve

Opening Balance 44,797 44,797 71,731



Closing Balance 39,177 46,813 44,797

SHIRE OF ESPERANCE

Page 22



1999 1999 1998

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

$

(q) Southern Suburbs Water Supply Reserve

Opening Balance 18,633 18,633 17,798



Closing Balance 19,473 19,471 18,633

( r) The Esplanade Road Deviation Reserve

Opening Balance 102,346 102,346 50,000


Transfer from Reserve 0 (152,346) 0

Closing Balance 156,959 0 102,346

(s) Boat Lifter Reserve

Opening Balance 30,146 30,146 30,000

Transfer to Reserve 1,120 565 1,407


Closing Balance 1,120 711 30,146

(t) Cascade Hall Reserve

Opening Balance 380 380 363



Closing Balance 397 397 380

(u) Scaddan Hall Reserve

Opening Balance 396 396 378




(v) Condingup Community Centre Reserve

Opening Balance 97 97 2,619


Transfer from Reserve 0 0 (2,645)


(w) Historical Village Reserve

Opening Balance 11,374 11,374 0

Transfer to Reserve 513 13,397 11,374


Closing Balance 11,887 24,771 11,374

(x) Plant Replacement Reserve

Opening Balance 51,694 51,694 0



Closing Balance 88,420 54,020 51,694

Total Cash Backed Reserves 4,329,203 2,909,418 4,113,779

All of the cash backed reserve accounts are supported by money held in financial institutions and

match the amount shown as restricted cash (reserves) in Note 3 to this financial report.

SHIRE OF ESPERANCE

Page 23



1999 1999 1998

12. RESERVES (Continued) $ Budget $

Summary of Transfers $

To Cash Backed Reserves

Transfers to Reserves

Land Purchase & Development Reserve 58,896 18,375 18,298

Council Buildings Construction Reserve 833,021 543,377 767,787

Aged Persons Hostel Reserve 19,378 19,864 21,073

Eastern Suburbs Water Pipeline Reserve 608 607 2,329

Jetty Reserve 24,942 24,934 24,017

Aerodrome Reserve 256,494 201,747 205,761

Salmon Gums Quarry Reserve 804 401 1,529

Municipal Museum Reserve 5,925 543 7,619

Condingup TV Repeater System Reserve 95 95 150

Civic and Cultural Centre Reserve 5,305 5,347 5,234

Meat Inspection Services Reserve 1,173 1,172 1,167

Off Street Parking Reserve 6,093 93 93

Sanitation (Rubbish Removal) Services 1,149 1,148 2,251

HACC Programme Reserve 980 13,104 11,731

Caravan Park Sewerage Reserve 1,077 1,075 1,071

Gravel Resources Compensation Reserve 6,144 27,016 28,365

Southern Suburbs Water Supply Reserve 840 838 835

The Esplanade Road Deviation Reserve 54,613 50,000 52,346

Boat Lifter Reserve 1,120 565 1,407

Casade Hall Reserve 17 17 17

Scaddan Hall Reserve 18 18 18

Condingup Community Centre Reserve 4 3 123

Historical Village Reserve 513 13,397 11,374

Plant Replacement Reserve 726,085 749,326 624,000

2,005,294 1,673,062 1,788,595

Transfers from Reserves

Land Purchase & Development Reserve (52,901) (64,000) 0

Council Buildings Construction Reserve (757,046) (1,199,108) (51,392)

Aged Persons Hostel Reserve (38,748) (5,605) (28,835)

Jetty Reserve (89,229) (120,000) 0

Aerodrome Reserve (90,514) (489,000) (2,825)

Salmon Gums Quarry Reserve 0 (16,312) (16,275)

Municipal Museum Reserve (1,330) 0 (3,718)

Condingup TV Repeater System Reserve (1,025) (1,000) (1,244)

Civic and Cultural Centre Reserve (2,858) 0 (2,543)

Sanitation (Rubbish Removal) Services Reserve (8,950) (18,051) (24,738)

HACC Programme Reserve (16,000) (10,000) 0

Gravel Resources Compensation Reserve (11,764) (25,000) (55,299)

The Esplanade Road Deviation Reserve 0 (152,346) 0

Boat Lifter Reserve (30,146) (30,000) (1,261)

Condingup Community Centre Reserve 0 0 (2,645)

Plant Replacement Reserve (689,359) (747,000) (572,306)

(1,789,870) (2,877,422) (763,081)

Total Transfer to/(from) Reserves 215,424 (1,204,360) 1,025,514

SHIRE OF ESPERANCE

Page 24



12. RESERVES (Continued)

In accordance with council resolutions in relation to each reserve account, the purpose for which

the reserves are set aside are as follows:

Land Purchase & Development Reserve

Established to fund land improvements and sub-division development. Funded by land sales.

Council Buildings Construction Reserve

Established to provide a fund for the construction of new community facilities and upgrading of existing

Council owned buildings. Funded from General Purpose Income.

Aged Persons Hostel Reserve

Established to fund improvements to the frail aged hostel for the benefit of its inhabitants. Funded by a

bequeath to be managed by the Shire Council.

East Suburbs Water Pipe Line Reserve

Established to provide funds to recycle waste water to recreation grounds.

Funded by the proceeds from the sale of water.

Jetty Reserve

Established to provide funds for future maintenance and repair of the main jetty opposite Gladstone

Street. Funded from General Purpose Income.

Aerodrome Reserve

Established to fund future development and upgrades of the airport facility. Funded by the annual surplus

derived from operation of the airport.

Salmon Gums Quarry Reserve

Established to fund the rehabilitation of the Salmon Gums Quarry following exhaustion of its gravel reserves.

Funded from General Purpose Income.

Municipal Museum Reserve

Established to provide funds for future major repairs or renovations to the museum building. Funded from

the annual surplus derived from museum entrance fees after expenses.

Condingup TV Repeater System Reserve

Contains the surplus of funds provided for the installation of a TV rebroadcasting facility at Condingup.

Civic & Cultural Centre Reserve

Established to provide funds for improvements and major repairs to the Civic Centre. Funded from

General Purpose Income.

Meat Inspection Reserve

A contingency fund for the purpose of employing a meat inspector if the existing contracted meat

inspection service failed to fulfil its obligations.

Off Street Parking Reserve

Established to provide funds for the future development of central business car parking in order to make

provisions for future business expansion of the CBD. Funded from General Purpose Income.

Sanitation (Rubbish Removal) Services Reserve

Established to fund the purchase of major sanitation equipment and for the future development of waste

disposal facilities. Funded from the annual surplus derived from property rubbish disposal/ collection fees

after expenses.

SHIRE OF ESPERANCE

Page 25



12. RESERVES (Continued)

HACC Program Reserve

Established to retain unexpended income derived from the provision of Home and Community Care

Services in Esperance. Contains the proceeds of fund raising activities, fees for service provision, and

unexpended Government grants held for future employment provisions liabilities – Long Service Leave.

Caravan Park Sewerage Reserve

Established to provide funds for the installation and connection of sewerage to the Shire caravan park on

the intersection of Norseman and Goldfields Roads anticipated during 1999/2000. Funded from General

Purpose Income.

Gravel Resources Compensation Reserve

Established for the purpose of paying compensation to land owners for damages and inconvenience .

caused by Council accessing gravel supplies on private property under the provisions of the Local

Government and Public Works Act Legislation. Also used to fund works provided by Council by

agreement with the landowner in lieu of a compensation payment. Funded from General Purpose Income

Southern Suburbs Water Supply Reserve

Established to provide funds to recycle waste water to recreation grounds. Funded by the proceeds of the

sale of water.

The Esplanade Road Deviation Reserve

Established to fund the deviation of The Esplanade at the Andrews Street intersection. Funded from

General Purpose Income.

Boat Lifter Reserve

Contains surplus funds following construction of the boat lifting facility at Bandy Creek.

Cascade Hall Reserve

Contains the surplus of a self-supporting loan raised to fund improvements.

Scaddan Hall reserve

Contains the surplus of a self supporting loan raised to fund improvements.

Condingup Community Centre Reserve

Contains the surplus of a self supporting loan raised to fund construction.

Historical Village Reserve

Established to fund future improvements and major building repairs at the historical village. Funded from

the surplus derived from on site property rentals after operating and maintenance expenses.

Plant Replacement Reserve

Council’s Policy is to minimise and if possible eliminate any need to rely upon loan finance or

unreasonable rate increases to finance the acquisition of major plant items. Funding is from the General

Purpose Income. Amounts allocated will be re-assessed annually in response to revisions of the five year

plant replacement program and the associated forward cost estimates.

SHIRE OF ESPERANCE

Page 26



13. NOTES TO THE STATEMENT OF CASH FLOWS

(a)

Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks and

investments, 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:

1999 1999 1998

$ Budget $

$

Cash - Unrestricted 923,754 193,537 876,039

Cash - Restricted 4,546,373 2,909,418 4,113,779

5,470,127 3,102,955 4,989,818

(b) Reconciliation of Net Cash Provided By

Operating Activities to Change in Net

Assets Resulting from Operations

Change in Net Assets Resulting

from Operations (221,156) (825,766) (827,267)

Depreciation 7,331,248 7,376,510 7,124,870

(Profit)/Loss on Sale of Asset (851,075) (551,137) (583,212)

(Increase)/Decrease in Receivables (212,428) 118,324 (194,965)

(Increase)/Decrease in Stock on Hand 21,413 2,610 9,502

Increase/(Decrease) in Creditors & Accruals 363,342 27,050 8,960

Increase/(Decrease) in Employee Provisions 242,641 41,101 (41,805)

Government Grants - non operating (962,166) (1,292,664) (168,839)

Net Cash from Operating Activities 5,711,819 4,896,028 5,327,244

(c) Credit Standby Arrangements

Bank Overdraft Limit 400,000 400,000

Bank Overdraft at Balance Date 0 (170,381)

Credit Card Facility 2,000 0

Total Amount of Credit Unused 402,000 229,619

(d)

Loan Facilities

Loan Liability - Current 250,608 341,166

Loan Liability - Non-Current 1,009,415 1,123,633

Total Facilities in Use at Balance Date 1,260,023 1,464,799

Unused Loan Facilities at Balance Date 0 0

SHIRE OF ESPERANCE

Page 27



1999 1998

$ $

14. CAPITAL AND LEASING COMMITMENTS

(a) Operating Lease Commitments

Non-cancellable operating leases

contracted for but not capitalised in

the accounts.

Payable:

- not later than one year 25,602 0

- later than one year but not later than two years 21,756 0

- later than two years but not later than five years 5,136 0

- later than five years 0 0

52,494 0

(b) Capital Expenditure Commitments

Contracted For:

- capital expenditure projects 3,164,618 0

Payable:

- not later than one year 3,164,618 0

The capital expenditure projects outstanding at the end of the current reporting period represents

the construction of alterations and additions to the recreation centre and additions to the airport

passenger terminal.

15. CONTINGENT LIABILITIES

There were no pending or lodged claims against Council at the time of preparing this report.

SHIRE OF ESPERANCE

Page 28



1999 1998 1997

16. FINANCIAL RATIOS

Current Ratio 1.13 1.72 1.08

Debt Ratio 0.02 0.02 0.02

Debt Service Ratio 0.04 0.07 0.11

Rate Coverage Ratio 0.32 0.37 0.37

Outstanding Rates Ratio 0.02 0.01 0.01

The above rates are calculated as follows:

Current Ratio equals Current assets minus restricted current assets

Current liabilities minus liabilities associated

with restricted assets

Debt Ratio equals Total liabilities

Total assets

Debt Service Ratio equals Debt Service Cost (Principal & Interest)

Available operating revenue

Rate Coverage Ratio equals Net rate revenue

Operating revenue

Outstanding Rates Ratio equals Rates outstanding

Rates collectable

17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

1999 1998

$ $

Governance 4,066,229 4,111,137

General Purpose Funding 80,406 64,856

Law, Order, Public Safety 602,219 500,786

Health 136,135 125,395

Education and Welfare 2,898,800 2,790,016

Housing 143,310 149,885

Community Amenities 1,096,393 667,320

Recreation and Culture 20,003,608 19,916,598

Transport 102,680,263 103,776,787

Economic Services 382,204 356,645

Other Property and Services 846,538 666,853

Unallocated 3,280,433 2,646,007

136,216,538 135,772,285

SHIRE OF ESPERANCE

Page 29

SHIRE OF ESPERANCE



18. DISPOSALS OF ASSETS - 1998/99 FINANCIAL YEAR

The following assets were disposed of during the year.

Net Book Value Sale Price

By Class Actual Budget Actual Budget Actual Budget

$ $ $ $ $ $

Land 454,851 549,645 1,091,250 885,000 636,399 335,355

Furniture & Equipment 23,758 10,910 4,483 7,400 (19,275) (3,510)

Other Plant & Equipment 3,782 0 1,910 0 (1,872) 0

Motor Vehicles 572,388 637,053 493,713 667,800 (78,675) 30,747

Roadmaking Plant 112,722 103,455 427,220 292,000 314,498 188,545

1,167,501 1,301,063 2,018,576 1,852,200 851,075 551,137

Summary

Profit 967,228 580,911

Loss (116,153) (29,774)

19. TRUST FUNDS

Funds held at balance date over which the Municipality has no control and which are not included in

the financial statements are as follows:

Balance Amounts Amounts Balance

1/07/1998 Received Paid 30/06/1999

$ $ $ $

Subdivision Bonds 121,460 15,546 124,048 12,958

Civic Centre Bonds 270 1,800 2,070 0

Builders Reinstatements 12,400 17,800 17,800 12,400

Library Book Bonds 200 0 0 200

Pre-paid Rates 7,734 10,064 17,798 0

BCITF Levies 2,738 52,057 53,431 1,364

Transport License Agency 0 4,065,837 4,016,841 48,996

General Deposits 251,347 96,442 255,177 92,612

396,149 4,259,546 4,487,165 168,530

Profit (Loss)

Page 30

SHIRE OF ESPERANCE



20. BUDGET COMPARISON 1999 1999

$ Budget

(a) Non Operating Income and Expenditure $

The following is a comparison of capital income and

expenditure and movements to and from reserve accounts

and the amounts contained in the Rate Setting Statement

of the annual budget.

Non Operating Income

Proceeds on sale of assets 2,018,576 1,301,063

Loans raised 139,000 185,000

Repayments of self supporting loans 131,855 139,459

Transfers from reserves 1,789,870 2,877,423

Non Operating Expenditure

Advances to Community Groups (139,000) 0

Principal repayment of loans (343,776) (341,165)

Construction/purchase of assets

Land and Buildings (2,457,292) (2,770,570)

Furniture and Equipment (134,057) (172,436)

Plant and Equipment (1,903,456) (2,013,400)

Infrastructure (3,769,023) (4,921,998)

Transfers to Reserves (2,005,294) (1,673,063)

(b) Current Position at 1st July 1998

The net current assets carried forward from the previous financial year for the purpose of the

1998/99 budget was $860,746.

The actual net current assets shown in the audited financial report as at 30th June 1998

was $863,770. This difference amounts to $3,024 and was due to various audit adjustments

being processed.

Page 31

SHIRE OF ESPERANCE



21. INFORMATION ON BORROWINGS

(a) Loan Repayments Borrowing Interest Maturity Principal New Interest Repayments Principal Principal

Institution Rate Date 1-Jul-98 Loans Repayments 30-Jun-99

Particulars % Actual Budget Actual Budget Actual Budget

Housing - Council Staff

Loan 243 - Depot House WATC 9.92 06/02 40,791 3,725 3,704 8,146 8,146 32,645 32,645

Community Amenities

Loan 221 - New Tip WBC 7.85 08/98 7,361 283 283 7,361 7,361 0 0

Loan 164 - PWD Sewer * WATC 10.80 11/99 33,248 3,231 3,023 21,578 21,578 11,670 11,670

Loan 178 - PWD Sewer * WATC 13.90 04/01 71,202 10,938 9,204 20,625 20,625 50,577 50,577

Loan 187A - PWD Sewer * WATC 16.00 11/01 87,321 14,539 13,188 20,356 20,356 66,965 66,966

Loan 197 - Sewerage * WATC 14.60 12/03 186,407 27,341 26,367 24,096 24,096 162,311 162,311


Loan 241 - Condi Com Hall Bwest 7.21 06/03 103,655 8,831 6,961 16,891 16,891 86,764 86,764

Loan 232 - Breakwater * ANZ 14.55 10/00 22,698 3,528 3,017 8,137 8,137 14,561 14,562

Loan 198 - Indoor Stadium WBC 8.55 09/99 22,235 1,692 1,509 14,528 14,528 7,707 7,707

Loan 200 - Esp Golf Extens * Bwest 16.00 11/99 8,277 776 756 5,371 5,371 2,906 2,906

Loan 224 - Sports Pavilion * WBC 9.25 02/99 1,859 99 99 1,859 1,859 0 0

Loan 227 - ERC Coffee Shop ANZ 14.85 09/99 4,572 635 574 2,938 2,937 1,634 1,634

Loan 230 - Condi Oval WC ANZ 15.20 12/99 7,440 988 956 4,777 4,777 2,663 2,664

Loan 244 - Netball C/Rooms * WATC 7.93 10/07 13,654 1,300 1,043 1,010 1,010 12,644 12,644

Loan 251A - Gibson Oval * WATC 6.61 09/03 7,547 631 466 1,179 1,179 6,368 6,368

Loan 251B - Gibson Oval WATC 6.61 09/03 3,774 315 233 590 590 3,184 3,184

Loan 252 -Squash Courts * WATC 6.60 12/03 48,930 4,040 3,028 7,252 7,252 41,678 41,677

Loan 257 - Sporting Club * WATC 9.95 06/04 36,798 4,248 3,455 4,495 4,495 32,303 32,303

Loan 261 - Pink Lake Count * WATC 9.50 08/11 197,270 21,760 18,669 2,046 2,046 195,224 195,224

Loan 262 - Esp Surf Club * WATC 8.95 01/11 36,796 3,982 3,204 1,639 1,639 35,157 35,157

Loan 263 - Esp Tennis Club * ANZ 9.25 12/05 33,098 3,265 2,989 3,228 3,228 29,870 29,870

Loan 264 - Esp Yacht Club * WATC 8.50 10/05 57,532 5,750 4,661 5,760 5,760 51,772 51,772

Loan 265 - Esp Indoor Sport * WATC 8.39 04/12 95,000 9,717 7,971 0 0 95,000 95,000

Loan 267 - Gibson Football * WATC 6.65 11/07 26,028 1,859 1,697 2,042 2,042 23,986 23,986

Loan 268 - Esp Kart Club * WATC 6.20 01/08 39,269 2,725 2,347 3,039 3,039 36,230 36,230

Loan 235 - Museum Extns ANZ 13.05 02/01 17,595 2,677 2,134 5,141 5,141 12,454 12,454

Loan 269 - Esp Speedway * WATC 5.74 10/08 25,000 987 0 941 0 24,059 0

Loan 270 - Condingup Rec * WATC 5.58 12/08 44,000 1,406 0 1,669 0 42,331 0

Loan 271 - Newton Lighting * WATC 6.30 04/09 50,000 687 0 0 0 50,000 0

Loan 272 - Esp Theatre * WATC 5.76 05/04 20,000 173 0 0 0 20,000 0

Transport

Loan 253 - Plant WATC 6.10 12/98 67,922 2,362 2,066 67,922 67,922 0 0

Loan 258 - Town Drainage WBC 7.80 03/99 6,208 365 365 6,208 6,208 0 0

Loan 259 - Plant WATC 10.38 12/98 19,761 1,021 1,021 19,761 19,761 0 0

Loan 260 - Plant WATC 10.58 12/00 160,551 17,532 14,729 53,191 53,191 107,360 107,359

1,464,799 139,000 163,408 139,719 343,776 341,165 1,260,023 1,123,634

(*) Self supporting loan financed by payments from third parties.

All other loan repayments were financed by general purpose income.Page 32

SHIRE OF ESPERANCE



21. INFORMATION ON BORROWINGS (Continued)

(b) New Borrowings

Amount Borrowed Institution Loan Term Total Interest Amount Used Balance

Type (Years) Interest & Rate Unspent

Particulars/Purpose Actual Budget Charges Actual Budget $

Princess St Road Const 0 185,000 WATC Debenture 10 0 6.30 0 185,000 0

Loan 269 - Esp Speedway 25,000 0 WATC Debenture 10 8,032 6.10 25,000 0 0

Loan 270 - Condingup Rec 44,000 0 WATC Debenture 10 13,710 7.80 44,000 0 0

Loan 271 - Newton Lighting 50,000 0 WATC Debenture 10 16,946 10.38 50,000 0 0

Loan 272 - Esp Theatre 20,000 0 WATC Debenture 5 3,161 10.58 20,000 0 0

(c) Unspent Loans - Nil.

(d) Overdraft

Council has established an overdraft facility of $400,000 to assist with short term liquidity requirements. The

balance of the bank overdraft at 1 July 1998 was $170,381 and 30 June 1999 was $Nil.

(e) Interest Rate Risk

Council's exposure to interest rate risk as a result of borrowings and the effective weighted average interest rate

on these borrowings is as follows:

1999 1998

Borrowings $ $

Floating interest rates 0 0

Fixed interest rate maturing

- within one year 26,581 103,111

- one to five years 637,169 863,040

- over five years 596,273 498,648

Non interest bearing 0 0

Total Borrowings 1,260,023 1,464,799

Weighted average effective interest rate 9.78% 10.06%

Page 33

SHIRE OF ESPERANCE



22. RATING INFORMATION - 1998/99 FINANCIAL YEAR

Rate in Number Rateable Rate Interim Back Total Budget Budget Budget Budget

$ of Value Revenue Rates Rates Revenue Rate Interim Back Total

RATE TYPE Properties Revenue Rate Rate Revenue

General Rate

GRV - Residential 7.2740 3,398 21,319,847 1,508,358 22,402 79 1,530,839 1,501,484 0 0 1,501,484

GRV - Comm/Industrial 7.2740 336 8,657,000 592,392 23,867 1,143 617,402 582,312 0 0 582,312

UV - Rural 2.1282 1,115 116,826,800 2,470,251 14,794 0 2,485,045 2,488,084 0 0 2,488,084

UV - Mining 2.1282 28 368,001 7,658 (664) 0 6,994 7,658 0 0 7,658

Phase-in GRV Country Townsites 7.2740 31 207,362 15,083 0 0 15,083 15,084 0 0 15,084

Sub-Totals 4,908 147,379,010 4,593,742 60,399 1,222 4,655,363 4,594,622 0 0 4,594,622

Minimum

Minimum Rates $

GRV - Residential 316 1142 2,554,541 349,180 (10,132) 0 339,048 354,552 0 0 354,552

GRV - Residential(lesser Min) 158 139 22,880 21,811 (530) 0 21,281 22,120 0 0 22,120

GRV - Comm/Industrial 316 97 212,577 30,336 (2,092) 0 28,244 30,020 0 0 30,020

UV - Rural 158 16 248,000 2,528 0 0 2,528 2,844 0 0 2,844

UV - Mining 158 50 100,702 6,320 (187) 0 6,133 5,688 0 0 5,688

Phase-in GRV Country Townsites 316 169 336,739 53,088 (417) 0 52,671 53,404 0 0 53,404

Sub-Totals 1613 3,475,439 463,263 (13,358) 0 449,905 468,628 0 0 468,628

5,105,268 5,063,250

Ex-Gratia Rates 42,439 42,439

Specified Area Rates 24,088 24,107

Prepaid Rates 10,064 0

5,181,859 5,129,796

Less Discounts (182,850) (191,957)

Less Rates Written Off (1,940) 0

Totals 4,997,069 4,937,839

MINIMUM RATES

Council has imposed a minimum rate of $316 with a lesser minimum rate of $158 for unserviced lots within prescribed areas.

The minimum rates have been determined by council on the basis that all ratepayers must make a reasonable contribution to the cost of local government services and facilities.

Page 34

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23. SPECIFIED AREA RATE - 1998/99 FINANCIAL YEAR

Rate in No Rateable Rate Budget Applied

$ of Value Revenue Rate to Costs

Services Revenue

Condingup Community Centre

GRV - Townsite 0.2200 50 143,576 316 316 316

UV - Rural 0.0850 155 27,989,500 23,791 23,791 23,791

Interim Rate (19) (19)

24,088 24,107 24,088

The Specified Area Rate for the Condingup Community Centre is applied to those properties in the vicinity

of Condingup. The proceeds of the rate are to service loan no. 241 expiring July 1, 2003 with annual repayments

of approximately $23,852 dependent upon the variable interest rate. Any remaining rate income is paid into

a reserve fund held for this purpose.

24. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS

- 1998/99 FINANCIAL YEAR

Type Disc % Total Budget

Cost/ Cost/

Value Value

Rates Discount 5 182,850 191,957

Write-off 100 1,920 0

184,770 191,957

A discount on rates is granted to all who pay their rates in full within 35 days of the date of service

appearing on the rate notice.

Rates written off relate to: (i) incorrect rating of a church manse from prior years; and

(ii) unknown whereabouts of the previous owner of a forfeited crown lease.

25. INTEREST CHARGES AND INSTALMENTS - 1998/99 FINANCIAL YEAR

Interest Admin. Revenue Budgeted

Rate (%) Charge Revenue

$ $ $

Interest on Unpaid Rates 10.0 16,410 5,000

Interest on Instalments Plan 6.5 12,911 9,595

Charges on Instalment Plan 15 10,530 9,595

39,851 24,190

Ratepayers had the option of paying rates in four equal instalments, due on 16th September 1998,

16th November 1998, 18th January 1999 and 18th March 1999. Administration charges and

interest applied for the final three instalments.

All rates outstanding as at due date attracted an interest penalty of 10% p.a. calculated daily.

Page 35

SHIRE OF ESPERANCE



1999 1999 1998

Budget

26. FEES & CHARGES $ $ $

Governance 5,981 4,050 8,750

General Purpose Funding 10,530 0 0


Health 222,672 236,500 232,646

Education & Welfare 67,365 75,685 79,478

Housing 0 0 0

Community Amenities 663,570 676,181 610,839

Recreation & Culture 275,079 233,825 338,641

Transport 395,104 330,740 367,406


Other Property & Services 231,461 2,500 95,104

2,255,455 1,885,117 1,954,441

There were no changes during the year to the amount of the fees

or charges detailed in the original budget.

27. GRANT REVENUE

General Purpose Funding 2,981,554 2,984,090 3,002,729

Law, Order, Public Sector 57,334 64,500 73,842

Education & Welfare 568,892 457,793 462,174

Community Amenities 0 0 60,000

Recreation and Culture 133,371 500,000 89,821

Transport 1,318,522 831,164 669,010

Economic Services 34,000 0 0

Other Property & Services 2,000 0 3,114

5,095,673 4,837,547 4,360,690

28. COUNCILLORS’ REMUNERATION

The following fees, expenses and allowances were

paid to council members and/or the president.

Meeting Fees 23,575 19,800 21,600

Travelling Expenses 21,092 17,700 14,782

Child Care Expenses 2,880 1,500 1,746

President’s Allowance 11,000 11,000 11,000

Entertainment Allowance (President) 0 0 0

Telephone & Fax Reimbursements 2,880 1,000 0

61,427 51,000 49,128

Page 36

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29. MAJOR LAND TRANSACTIONS

Dempster Heights Subdivision - Stage 3

(a) Details

All works on Stage 3 of Dempster Heights Subdivison were completed during 1997/98 financial year,

all of the blocks were sold in 1997/98 except for Lot 182 Addington Cross, which was settled during

this financial year.

1999 1998

(b) Current year transactions $ $

(i) OPERATING STATEMENT

Operating Income:

- Profit on sale 28,212 0

Operating Expenditure:

- Commission and Settlement Fees 0 23,218

(ii) CASHFLOWS

Inflows:

- Sale Proceeds 42,500 828,500

Outflows:

- Development Costs 0 314,615

(c) Total Project Transactions

Actual Estimated

$ $

Sale Proceeds 871,000 672,000

Development Costs 411,964 315,000

This subdivision provided a high standard of residential land at reasonable prices to members of

the community. The surplus of $459,036 from the sale of the lots was allocated to the Building

Construction Reserve for the purpose of upgrading the Recreation Centre to a high quality community

recreation facility.

Income

Expenditure

Page 37

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29. MAJOR LAND TRANSACTIONS (Continued)

Dempster Heights Subdivision - Stage 4

(a) Details

All works on Stage 4 of Dempster Heights Subdivison were completed during 1998/99 financial year,

Council developed 12 residential lots within the subdivison. The development costs include the provision

of services such as sewerage, power and transport infrastructure.

10 Lots were sold during 1998/99 financial year.

1999 1998

(b) Current year transactions $ $

(i) OPERATING STATEMENT

Operating Income:

- Profit on sale 609,125 0

(ii) CASHFLOWS

Inflows:

- Sale Proceeds 878,500 0

Outflows:

- Purchase of Land 12,060

- Development Costs 308,555 0

320,615

Net Cash Flows 557,885 0

(c) Expected Future Cash Flows 2000

$

Cash Inflows

Sale Proceeds 170,000

Cash Outflows

Settlement and Commission Costs 1,000

Net Cash Flows 169,000

The net cash flows to 30 June in relation to this subdivision is an inflow of $557,885. The net cash flow

of the whole land transaction is expected to result in an income of $726,885.

Page 38

SHIRE OF ESPERANCE



30. MAJOR TRADING UNDERTAKING

- Esperance Aerodrome

1999 1999 1998

Actual Budget Actual

$ $ $

(a) Operating Statement

Operating Revenues

Passenger Landing Fees 350,105 290,000 306,389

Commissions Fuel Agency 20,298 20,000 21,567

Building Rentals 3,890 3,740 3,360

Grounds Rentals 3,450 2,000 1,920

Other Sundry Income 2,231 500 2,434

Profit on Disposal of Assets 0 6,630 0

Reimbursement Operating Expenses 5,864 6,000 1,830

385,838 328,870 337,500

Operating Expenses

Employee Expenses 60,116 46,830 30,273

Insurance 5,442 5,000 5,941

Building Expenses 14,843 17,550 14,588

Grounds & Strip Maintenance 34,407 42,700 23,372

Fuel Agency Expense 17,572 15,000 21,787

Loss on Disposal of Assets 6,370 0 0

Depreciation 57,953 59,000 52,901

Other 13,613 11,350 8,915

210,316 197,430 157,777

CHANGE IN NET ASSETS

RESULTING FROM OPERATIONS 175,522 131,440 179,723

(b) Non-Operating Income & Expenditure

Capital Revenue

Sale of Motor Vehicle 15,000 28,000 0

Transfer From Reserve Fund 90,514 489,000 2,825

105,514 517,000 2,825

Capital Expenditure

Additions to Terminal Building (In Progress) 61,338 450,000 2,825

Purchase of Vehicle 19,245 31,000 0

Lighting Improvements 25,897 24,000 0

Back-up power supply 7,213 15,000 0

Frequency Response Equipment 3,265 0 0

Transfer To Reserve Fund 217,397 0 0

334,355 520,000 2,825

TOTAL NET TRADING UNDERTAKING (53,319) 128,440 179,723

Note: The extensions to the Airport Terminal have now been scheduled to be completed

during 1999/2000.

Page 39

SHIRE OF ESPERANCE



30. MAJOR TRADING UNDERTAKING

- Esperance Aerodrome (Continued)

1999 1999 1998

Actual Budget Actual

(c) Financial Position $ $ $

CURRENT ASSETS

Investments 1,047,913 881,934

Debtors 2,377

TOTAL CURRENT ASSETS 1,050,290 881,934

CURRENT LIABILITIES

Creditors and Provisions 4,584 0

TOTAL CURRENT LIABILITIES 4,584 0

NET CURRENT ASSETS 1,045,706 881,934

NON-CURRENT ASSETS

Property Plant and Equipment 552,860 163,794

Infrastructure 1,291,436 1,338,846

Work in Progress 61,338 0

TOTAL NON CURRENT ASSETS 1,905,634 1,502,640

NON CURRENT LIABILITIES

Creditors and Provisions 1,058 0

TOTAL NON CURRENT LIABILITIES 1,058 0

NET ASSETS 2,950,282 2,384,574

EQUITY

Accumulated Surplus 1,570,318 1,170,589

Revaluation Reserve - Non Cash 332,051 332,051

Reserves - Cash Backed 1,047,913 881,934

TOTAL EQUITY 2,950,282 2,384,574

Page 40

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Budget

Applied

to Costs

23,536

316

23,852

of Condingup. The proceeds of the rate are to service loan no. 241 expiring July 1, 2003 with annual repayments

Page 41

annual report - shire of esperance · advantages and disadvantages arising out of local government...

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