city of gosnells branch synopses · depreciation 2(a) 13,215,427 13,193,240 13,193,263 interest...

CITY OF GOSNELLS BRANCH SYNOPSES

Governance Directorate Health Services 1 Ranger Services 2 Communications and Marketing 3 Building Services 4 Planning and Sustainability Directorate City Growth 5 Economic Development 6 Planning Implementation 7 Urban Regeneration 8

Infrastructure Directorate City Facilities 9 Engineering Operations 10 Parks and Environmental Operations 11 Technical Services 12

Corporate Services Directorate Human Resources 13 Financial Services 14 Information Services 15

Community Engagement Directorate Library and Heritage Services 16 Leisure Services 17 Community Capacity Building 18-19

NOTE 2008/09 2007/08 2007/08Budget Actual Budget

$ $ $REVENUES FROM ORDINARY ACTIVITIESRates 8 (38,942,471) (35,029,491) (34,871,686) Grants and Subsidies (3,941,377) (4,665,532) (3,555,869) Contributions Reimbursements and Donations (392,938) (745,814) (492,445) Fees and Charges 11 (12,707,683) (12,491,904) (11,975,953) Interest Earnings 2(a) (3,183,491) (2,538,121) (4,128,211) Other Revenue (75,000) (301,956) (85,000)

(59,242,960) (55,772,818) (55,109,164)

EXPENSES FROM ORDINARY ACTIVITIESEmployee Costs 24,195,234 21,132,351 22,114,494 Materials and Contracts 18,239,248 14,749,181 17,672,011 Utilities 2,596,451 2,548,300 2,464,978 Depreciation 2(a) 13,215,427 13,193,240 13,193,263 Interest Expenses 2(a) 2,670,000 1,000,613 1,056,000 Insurance 1,185,576 1,140,241 1,179,030 Other Expenditure 520,700 707,122 656,200

62,622,636 54,471,048 58,335,976 3,379,676 (1,301,770) 3,226,812

Grants and Subsidies - non-operating (9,435,186) (4,072,080) (7,683,888) Contributions Reimbursements and Donations - non-operating (3,409,471) (5,737,896) (2,563,110) Profit on Asset Disposals 4 (4,452,296) (135,902) (4,386,927) Loss on Asset Disposals 4 394,048 109,495 330,227

NET RESULT (13,523,229) (11,138,153) (11,076,886)

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

FOR THE YEAR ENDED 30TH JUNE 2009

CITY OF GOSNELLSINCOME STATEMENTBY NATURE OR TYPE

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$ $ $OPERATING REVENUES (Refer Notes 1,2,8 to 13)Governance (50,100) (57,758) (55,100) General Purpose Funding (45,344,959) (40,945,783) (42,107,168) Law, Order, Public Safety (424,534) (362,832) (374,404) Health (99,970) (109,086) (97,695) Education and Welfare (860,019) (882,333) (858,094) Community Amenities (8,147,250) (7,609,793) (7,440,862) Recreation and Culture (2,173,597) (2,507,652) (2,379,137) Transport (90,500) (114,707) (71,000) Economic Services (1,759,188) (2,620,922) (1,329,954) Other Property and Services (292,842) (561,951) (395,750)

(59,242,959) (55,772,817) (55,109,164)

OPERATING EXPENSES (Refer Notes 1,2 & 14)Governance 3,578,973 3,529,174 3,592,566 General Purpose Funding 1,015,590 1,082,421 966,857 Law, Order, Public Safety 1,885,220 1,650,909 1,783,860 Health 1,214,024 1,076,667 1,250,840 Education and Welfare 3,001,032 2,610,007 2,699,570 Community Amenities 11,882,360 8,967,581 10,564,916 Recreation & Culture 19,077,125 18,155,266 17,891,569 Transport 14,339,534 13,902,520 13,507,042 Economic Services 3,301,228 2,431,649 4,160,430 Other Property and Services 657,549 64,240 862,326

59,952,635 53,470,434 57,279,976

BORROWING COSTS EXPENSE (Refer Notes 2 & 5)Recreation & Culture 1,170,000 394,613 450,000Other Property and Services 1,500,000 606,000 606,000

2,670,000 1,000,613 1,056,000GRANTS/CONTRIBUTIONS FOR THE DEVELOPMENT OF ASSETSLaw, Order, Public Safety 0 Community Amenities (2,700,000) (5,531,280) (2,250,000) Recreation & Culture (430,566) (633,549) (1,030,158) Transport (9,664,091) (3,623,047) (6,966,840) Other Property and Services (50,000) (22,100) 0

(12,844,657) (9,809,976) (10,246,998) (PROFIT)/LOSS ON DISPOSAL OF ASSETS (Refer Note 4)Recreation & Culture (4,156,000) 0 (4,156,000) Transport 97,752 (26,407) 99,300

(4,058,248) (26,407) (4,056,700)

NET RESULT (13,523,229) (11,138,153) (11,076,886)


CITY OF GOSNELLSINCOME STATEMENT

BY PROGRAMFOR THE YEAR ENDED 30TH JUNE 2009

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Cash Flows From Operating Activities $ $ $

ReceiptsRates (38,977,325) (35,163,491) (34,725,559) Grants and Subsidies - operating (3,876,262) (4,465,532) (3,555,869) Contributions, Reimbursements & Donations (177,319) (845,814) (492,445) Service Charges 0 0 (281,805) Fees and Charges (12,362,679) (12,275,343) (11,810,830) Interest Earnings (3,066,940) (2,358,121) (4,128,211) Goods and Services Tax (4,449,585) (4,320,042) (4,341,653) Other (75,000) (301,955) (85,000)

(62,985,110) (59,730,298) (59,421,372) PaymentsEmployee Costs 24,164,759 21,035,143 21,773,543 Materials and Contracts 17,757,431 18,395,761 21,361,113 Utilities (gas, electricity, water, etc) 2,596,451 2,748,300 1,214,978 Insurance 1,185,576 1,140,241 1,179,030 Interest 2,460,339 394,613 1,056,000 Goods and Services Tax 4,488,505 4,480,000 4,390,407 Other 520,700 707,121 656,200

53,173,761 48,901,179 51,631,271Net Cash Provided ByOperating Activities 15(b) (9,811,349) (10,829,119) (7,790,101)

Cash Flows from Investing ActivitiesPayments for Development of Land Held for Resale 3 0 0 1,700,000 Payments for Purchase of Property, Plant & Equipment 3 40,531,639 10,570,590 34,898,914 Payments for Construction of Infrastructure 3 31,675,332 11,570,912 26,780,995 Grants/Contributions for the Development of Assets (12,844,657) (9,809,976) (10,246,998)

Proceeds from Sale of Assets 4 (8,249,500) (1,091,741) (8,247,340) Net Cash Used in Investing Activities 51,112,814 11,239,785 44,885,571

Cash Flows from Financing ActivitiesRepayment of Debentures 5 5,385,000 0 5,385,000Proceeds from New Debentures 5 (30,640,000) (6,000,000) (26,768,300) Net Cash Provided By (Used In)Financing Activities (25,255,000) (6,000,000) (21,383,300)

Net Increase (Decrease) in Cash Held 16,046,465 (5,589,334) 15,712,170 Cash at Beginning of Year (55,247,567) (49,658,233) (51,576,755) Cash and Cash Equivalents at the End of the Year 15(a) (39,201,102) (55,247,567) (35,864,585)


CITY OF GOSNELLSCASH FLOW STATEMENT


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$ $ $REVENUES 1,2Governance (50,100) (57,758) (55,100) General Purpose Funding (6,402,488) (5,916,292) (7,235,482) Law, Order, Public Safety (424,534) (362,832) (374,404) Health (99,970) (109,086) (97,695) Education and Welfare (860,019) (882,333) (858,094) Community Amenities (8,147,250) (7,609,793) (7,440,862) Recreation and Culture (6,329,597) (2,507,652) (6,535,137) Transport (386,796) (250,609) (301,927) Economic Services (1,759,190) (2,620,922) (1,329,954) Other Property and Services (292,842) (561,951) (395,750)

(24,752,786) (20,879,228) (24,624,405) EXPENSES 1,2Governance 1,015,590 3,529,174 3,592,566 General Purpose Funding 3,578,973 1,082,421 966,857 Law, Order, Public Safety 1,885,220 1,650,909 1,783,860 Health 1,214,024 1,076,667 1,250,840 Education and Welfare 3,001,032 2,610,007 2,699,570 Community Amenities 11,882,360 8,967,581 10,564,916 Recreation & Culture 20,247,125 18,549,879 18,341,569 Transport 14,733,584 14,012,015 13,837,269 Economic Services 3,301,228 2,431,649 4,160,430 Other Property and Services 2,157,549 670,240 1,468,326

63,016,685 54,580,542 58,666,203Adjustments for Cash Budget Requirements:Non-Cash Expenditure and RevenueProfit/(Loss) on Asset Disposals 4 4,058,248 26,407 4,056,700 Depreciation on Assets 2(a) (13,215,427) (13,193,240) (13,193,263) Capital Expenditure and RevenuePurchase Land Held for Resale 3 0 0 1,700,000 Purchase Land and Buildings 3 34,645,410 7,173,047 29,217,120 Purchase Infrastructure Assets 3 31,675,332 11,570,912 26,780,995 Purchase Plant and Equipment 3 4,536,820 2,933,052 4,645,900 Purchase Furniture and Equipment 3 1,349,409 464,491 1,035,894 Proceeds from Disposal of Assets 4 (8,249,500) (1,091,741) (8,247,340) Repayment of Debentures 5 5,385,000 0 5,385,000 Proceeds from New Debentures 5 (30,640,000) (6,000,000) (26,768,300) Contribution/Grants for the construction of Assets (12,844,657) (9,809,976) (10,246,998) Change in Non Current Liabilities 0 1,000,000 0 Transfers to Reserves (Restricted Assets) 6 7,219,720 11,265,370 8,573,320 Transfers from Reserves (Restricted Assets) 6 (10,528,504) (4,979,793) (11,207,019)

ADD Estimated (Surplus)/Deficit July 1 B/Fwd 7 (13,113,279) (11,143,631) (11,302,121) LESS Estimated Surplus/(Deficit) June 30 C/Fwd 7 400,000 13,113,279 400,000

Amount Required to be Raised from Rates 8 38,942,471 35,029,491 34,871,686


RATE SETTING STATEMENTFOR THE YEAR ENDED 30TH JUNE 2009

CITY OF GOSNELLS

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1. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies which have been adopted in the preparation of this financialreport are:

(a) Basis of AccountingThe budget has been prepared in accordance with applicable Australian Accounting Standards (as theyapply to local government and not-for-profit entities), other mandatory professional reporting requirements,the Local Government Act 1995 (as amended) and accompanying regulations (as amended). Thebudget has also been prepared on the accrual basis under the convention of historical cost accounting.

(b) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functions have beenincluded in the financial statements forming part of this budget.

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

All monies held in the Trust Fund are excluded from the financial statements, but a separatestatement of those monies appears at Note 16 to this budget document.

(c) 2007/08 Actual BalancesBalances shown in this budget as 2007/08 Actual are as forecast at the time of budgetpreparation and are subject to final adjustments.

(d) Rounding Off FiguresAll figures shown in this budget, other than a rate in the dollar, are rounded to the nearest dollar.

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

(f) Goods and Services TaxIn accordance with recommended practice, revenues, expenses and assets capitalised are stated netof any GST recoverable. Receivables and payables are stated inclusive of applicable GST.

(g) Cash and Cash EquivalentsCash and cash equivalents comprise cash at bank and in hand and short-term deposits that arereadily convertible to known amounts of cash and which are subject to an insignificant risk ofchanges in value.

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash andcash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts areincluded as short-term borrowings in current liabilities.


CITY OF GOSNELLSNOTES TO AND FORMING PART OF THE BUDGET

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1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(h) Trade and Other Receivables

(i) Inventories

(j) Fixed Assets

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

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

Those assets carried at a revalued amount, being their fair value at the date of revaluation less anysubsequent accumulated depreciation and accumulated impairment losses, are to be revalued withsufficient regularity to ensure the carrying amount does not differ materially from that determined usingfair value at reporting date.



Trade receivables, which generally have 30 - 90 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less any allowance for uncollectible amounts.

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

General Inventories are valued at the lower of cost and net realisable value. Net realisablevalue is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories held from trading are classified as current even if not expected to be realised in the next 12 months.

Land Held for ResaleLand 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.

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

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Land Under RoadsLand under roads is excluded from infrastructure in accordance with the transitional arrangements availableunder AASB 1045 and in accordance with legislative requirements.

(k) Depreciation of Non-Current AssetsAll non-current assets having a limited useful life are separately and systematically depreciated overtheir useful lives in a manner which reflects the consumption of the future economic benefits embodiedin those assets. Assets are depreciated from the date of acquisition or, in respect of internallyconstructed assets, from the time the asset is completed and held ready for use.

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

Buildings 30 to 50 yearsFurniture and Equipment 4 to 10 yearsIT Equipment 3 to 5 yearsPlant and Equipment 5 to 15 yearsSealed roads and streets clearing and earthworks not depreciated construction/road base 20 to 30 years original surfacing and major re-surfacing - bituminous seals 30 years - asphalt surfaces 30 yearsFootpaths 40 yearsBridges 50 yearsDrains 50 yearsPark Development 20 yearsPlay Equipment 5 years

(l) Investments and Other Financial Assets



ClassificationCouncil classifies its investments in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit and lossFinancial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets.

(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in trade and other receivables in the balance sheet.

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(l) Investments and Other Financial Assets (Continued)

NOTES TO AND FORMING PART OF THE BUDGETFOR THE YEAR ENDED 30TH JUNE 2009

CITY OF GOSNELLS

Classification (Continued)(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. If Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets. (iv) Available-for-sale financial assetsAvailable-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

Recognition and derecognitionRegular purchases and sales of financial assets are recognised on trade-date – the date on which Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the income statement. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Council has transferred substantially all the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in the income statement as gains and losses from investment securities.

Subsequent measurementLoans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.

Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are presented in the income statement within other income or other expenses in the period in which they arise. Dividend income from financial assets at fair value through profit and loss is recognised in the income statement as part of revenue from continuing operations when Council’s right to receive payments is established. Changes in the fair value of other monetary and non-monetary securities classified as available-for-sale are recognised in equity.

ImpairmentCouncil assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss- measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments classified as available-for-sale are not reversed through the income statement.

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(m) Estimation of Fair Value

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

Where such an indication exists, an estimate of the recoverable amount of the asset is madein accordance with AASB 136 "Impairment of Assets" and appropriate adjustments made.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generatingunit exceeds its recoverable amount. Impairment losses are recognised in the Income Statement.

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

At the time of adopting the budget, it is not possible to estimate the amount of impairment losses(if any) as at 30 June 2009.

In any event, an impairment loss is a non-cash transaction and consequently, has no impact onthis budget document.

(o) Trade and Other PayablesTrade and other payables are carried at amortised cost. They represent liabilities for goods and servicesprovided to the Municipality prior to the end of the financial year that are unpaid and arise when theMunicipality becomes obliged to make future payments in respect of the purchase of these goods andservices. The amounts are unsecured and are usually paid within 30 days of recognition.



The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments.

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(p) Employee BenefitsThe provisions for employee benefits relates to amounts expected to be paid for long serviceleave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits)The provision for employees’ benefits to wages, salaries, annual leave and long service leaveexpected to be settled within 12 months represents the amount the municipality has a presentobligation to pay resulting from employees services provided to balance date. The provision hasbeen calculated at nominal amounts based on remuneration rates the Council expects to payand includes related on-costs.

(ii) Annual Leave and Long Service Leave (Long-term Benefits)

(q) Interest-bearing Loans and BorrowingsAll loans and borrowings are initially recognised at the fair value of the consideration received lessdirectly attributable transaction costs.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortisedcost using the effective interest method. Fees paid on the establishment of loan facilities that areyield related are included as part of the carrying amount of the loans and borrowings.

Borrowings are classified as current liabilities unless the Council has an unconditional right to defersettlement of the liability for at least 12 months after the balance sheet date.

Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributableto the acquisition, construction or production of a qualifying asset. Where this is the case, they arecapitalised as part of the cost of the particular asset.

(r) Provisions



The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match as closely as possible, the estimated future cash outflows. Where Council does not have the unconditional right to defer settlement beyond 12 months, the liability is recognised as a current liability.

Provisions are recognised when: The council has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

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(s) SuperannuationThe City of Gosnells contributes to the Local Government Superannuation Scheme and the OccupationalSuperannuation Fund. Both Funds are defined contribution schemes.

Contributions to defined contribution plans are recognised as an expense as they become payable.Prepaid contributions are recognised as an asset to the extent a cash refund or a reduction in the futurepayments is available.

(t) Current and Non-Current Classification



In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for resale where it is held as non-current based on Council’s intentions to release for sale.

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2008/09 2007/08 2007/08Budget Actual Budget

2. REVENUES AND EXPENSES $ $ $

(a) Net Result from Ordinary Activities was arrived at after:

(i) Charging as Expenses:

Depreciation

By ProgramLaw, Order, Public Safety 7,620 7,597 7,620Health 62,600 62,600 62,600Education and Welfare 103,300 103,300 103,300Community Amenities 1,700 1,700 1,700Recreation and Culture 2,912,900 2,912,900 2,912,900Transport 7,910,000 7,910,000 7,910,000Other Property and Services 2,217,307 2,195,143 2,195,143

13,215,427 13,193,240 13,193,263

By ClassLand and Buildings 1,757,200 1,757,200 1,757,200Furniture and Equipment 415,120 415,097 415,120Plant and Equipment 1,602,107 1,579,943 1,579,943Roads & Footpaths 6,700,000 6,700,000 6,700,000Bridges 172,000 172,000 172,000Drainage 875,000 875,000 875,000Car Parks 163,000 163,000 163,000Parks 1,370,000 1,370,000 1,370,000Amortisation 161,000 161,000 161,000

13,215,427 13,193,240 13,193,263

Borrowing Costs (Interest)- Short Term Facilities (refer note 5(a)) 2,670,000 1,000,613 1,056,000

2,670,000 1,000,613 1,056,000Rental Charges- Operating Leases 75,000 75,000 75,000

(ii) Crediting as Revenues:

Interest Earnings Investments - Reserve Funds (1,689,309) (1,264,298) (2,657,732) - Other Funds (1,097,427) (908,710) (1,086,562) Other Interest Revenue (refer note 13) (396,755) (365,113) (383,917)

(3,183,491) (2,538,121) (4,128,211)


CITY OF GOSNELLS

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2. REVENUES AND EXPENSES (Continued)

(b) Statement of Objective

In order to discharge its responsibilities to the community, Council has developed a set ofoperational and financial objectives. These objectives have been established both on an overallbasis and for each of its broad activities/programs.

Council operations as disclosed in this budget encompass the following service orientatedactivities/programs:

GOVERNANCEObjective:

Activities:

GENERAL PURPOSE FUNDINGObjective:

Activities:

LAW, ORDER, PUBLIC SAFETYObjective:

Activities:

HEALTHObjective:

Activities:

EDUCATION AND WELFAREObjective:

Activities:

To provide a decision-making process to efficiently allocate scarce resources.

Administration and operation of facilities and services to Members of Council and other costs relating to assistance to Members that cannot be specifically allocated.

To collect revenue to finance Council activities.

Rates, government grants, interest revenue collection and administration.


To assist in meeting the needs of the community.

Operation of senior citizens' and day-care centres, pre-schools, playgroup assistance and other voluntary services.

To provide services to ensure a safer community.

Supervision of by-laws, fire prevention, emergency services and animal control.

To provide an operational framework for good community health.

Enforcement of food quality standards, pest control, immunisation and child health services.


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2. REVENUES AND EXPENSES (Continued)

(b) Statement of Objective (Continued)

COMMUNITY AMENITIESObjective:

Activities:

RECREATION AND CULTUREObjective:

Activities:

TRANSPORTObjective:

Activities:

ECONOMIC SERVICESObjective:

Activities:

OTHER PROPERTY AND SERVICES

Activities:

To promote the City and improve its economic base.

Promotion of tourism in the area together with regulation of building.

Private works operations, plant repairs and general operations costs.

To provide services required by the community.

Rubbish collection and recycling programs, tip operation, noise control, town planning and storm water drainage and maintenance.

To establish and manage facilities for the well-being of the community.

Ensure availability of halls, aquatic centre, recreation sportsgrounds and libraries.

To provide effective infrastructure to the community in the most efficient way.

Construction and maintenance of roads and bridges and lighting and clearing of streets.



14

2008/093. ACQUISITION OF ASSETS Budget

$The following assets are budgeted to be acquiredduring the year:

By Program

Law, Order, Public Safety 60,000Education and Welfare 10,000Recreation and Culture 22,664,329Transport 22,500,832Other Property and Services 26,971,810

72,206,971By Class

Land and Buildings 34,645,410Infrastructure Assets - Roads & Paths 19,703,362Infrastructure Assets - Parks 9,249,500Infrastructure Assets - Bridges 2,053,000Infrastructure Assets - Drains 669,470Plant and Equipment 4,536,820Furniture and Equipment 1,349,409

72,206,971

A detailed breakdown of acquisitions on an individual asset basis can be found inthe supplementary information attached to this budget document as follows:

- Capital and Non-Recurrent Program and Capital and Carryforward Program.



15

4. DISPOSALS OF ASSETS

The following assets are budgeted to be disposed of during the year.

Net Book Value Sale Proceeds Profit(Loss)

By Program 2008/09 2008/09 2008/09BUDGET BUDGET BUDGET

$ $ $

Recreation and Culture 2,429,000 (6,585,000) (4,156,000)

Transport 1,762,252 (1,664,500) 97,752

4,191,252 (8,249,500) (4,058,248)

Net Book Value Sale Proceeds Profit(Loss)

By Class 2008/09 2008/09 2008/09BUDGET BUDGET BUDGET

$ $ $

Land 2,429,000 (6,585,000) (4,156,000)

Plant and Equipment 1,762,252 (1,664,500) 97,752

4,191,252 (8,249,500) (4,058,248)

2008/09Summary BUDGET

$

Profit on Asset Disposals (4,452,296) Loss on Asset Disposals 394,048

(4,058,248)


CITY OF GOSNELLS

16



5. INFORMATION ON BORROWINGS(a) Debt Repayments

Principal Principal Interest

Repayments Outstanding RepaymentsPrincipal New 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08

Particulars 1-Jul-08 Loans Budget Actual Budget Actual Budget Actual$ $ $ $ $ $

Harmony Fields 6,500,000 5,385,000 0 1,115,000 6,500,000 300,000 394,613

Civic Centre 20,900,000 3,500,000 0 0 24,400,000 6,000,000 1,500,000 606,000

Amherst Village Community Centre 5,760,000 0 0 5,760,000 0 410,000 0

Lot 8 Holmes St, Southern River - Development 6,480,000 0 0 6,480,000 0 460,000 0

27,400,000 15,740,000 5,385,000 0 37,755,000 12,500,000 2,670,000 1,000,613

All debt repayments are to be financed by general purpose revenue.All debt are short term interest only facilities which will be rolled into debenture facilties once the final debt required can be determined

17



5. INFORMATION ON BORROWINGS (Continued)

(b) New Debentures - 2008/09

Total Interest Balance Particulars/Purpose Amount Borrowed Institution Loan Term Interest & Rate Amount Used Unspent

Budget Type (Years) Charges % Budget $

Civic Centre 3,500,000 WATC

Short Term Interest Only

Facility 2 553,000 7.90 3,500,000 0

Amherst Village Community Centre 5,760,000 WATC


Facility 2 910,080 7.90 5,760,000 0

Lot 8 Holmes St, Southern River - Development 6,480,000 WATC


Facility 2 1,023,840 7.90 6,480,000 0

(c) Unspent Debentures

(d) Overdraft

Council has not utilised an overdraft facility during the financial year.It is not anticipated that such a facility will be required to be utilised during 2008/09.

18

Council has $2,195,000 drawn but not spent and $18,400,000 undrawn and unspent Civic Centre funds as at 30 June 2008

Council has $553,000 undrawn and unspent Harmony Fields funds as at 30 June 2008.


$ $ $6. RESERVES

Cash Backed Reserves

MGB Plant and EquipmentOpening Balance 1,720,052 1,155,596 1,184,639 Transfer to Reserve 649,496 585,687 435,497 Interest Transfer to Reserve 80,784 51,965 101,068 Transfer from Reserve (1,008,000) (73,196) (72,500)

1,442,332 1,720,052 1,648,704

Leisure World - Mechanical/Plant ServicesOpening Balance 85,527 82,399 82,701 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 4,017 3,128 7,056 Transfer from Reserve 0 0 (6,600)

89,544 85,527 83,157

Netball Courts - ResurfacingOpening Balance 7,117 6,857 6,853 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 334 260 585 Transfer from Reserve 0 0 0

7,451 7,117 7,438

Performing Arts CentreOpening Balance 90,423 89,410 103,049 Transfer to Reserve 17,517 17,230 18,050 Interest Transfer to Reserve 4,247 3,544 8,792 Transfer from Reserve 0 (19,761) (22,000)

112,187 90,423 107,891

Waste Disposal Site DevelopmentOpening Balance 4,070,894 3,922,007 3,919,826 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 191,195 148,887 334,422 Transfer from Reserve 0 0 0

4,262,089 4,070,894 4,254,248

Refuse Disposal Site RehabilitationOpening Balance 289,448 225,195 224,976 Transfer to Reserve 67,937 55,532 50,000 Interest Transfer to Reserve 13,594 8,721 19,194 Transfer from Reserve 0 0 (103,000)

370,979 289,448 191,170

Hillside Farm EquipmentOpening Balance 1,963 1,891 1,890 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 92 72 161 Transfer from Reserve 0 0 0

2,055 1,963 2,051



19


$ $ $6. RESERVES (Continued)

InsuranceOpening Balance 381,501 367,549 367,345 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 17,918 13,952 31,340 Transfer from Reserve 0 0 0

399,419 381,501 398,685

Southern River Contaminated Site RehabilitationOpening Balance 604,292 665,064 664,563 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 28,381 25,099 56,698 Transfer from Reserve (100,000) (85,871) (100,000)

532,673 604,292 621,261

Building ConstructionOpening Balance 415,606 400,406 526,439 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 19,519 15,200 44,913 Transfer from Reserve 0 0 0

435,125 415,606 571,352

Local Government ElectionsOpening Balance 159,467 190,843 189,892 Transfer to Reserve 101,236 97,062 97,062 Interest Transfer to Reserve 7,490 6,644 16,201 Transfer from Reserve 0 (135,082) (141,500)

268,193 159,467 161,655

Rate RevaluationOpening Balance 14,998 121,039 120,206 Transfer to Reserve 111,758 87,975 87,975 Interest Transfer to Reserve 704 5,984 10,255 Transfer from Reserve 0 (200,000) 0

127,460 14,998 218,436

Gosnells Town Centre RevitalisationOpening Balance 122,143 121,190 492,698 Transfer to Reserve 74,140 0 0 Interest Transfer to Reserve 5,737 1,287 42,035 Transfer from Reserve (18,500) (334) (19,000)

183,520 122,143 515,733

Plant and EquipmentOpening Balance 1,184,696 1,382,843 1,757,821 Transfer to Reserve 1,134,760 1,101,708 1,101,708 Interest Transfer to Reserve 55,641 69,901 149,969 Transfer from Reserve (1,555,000) (1,369,756) (2,605,560)

820,097 1,184,696 403,938


CITY OF GOSNELLS

20


$ $ $

Walter Padbury ParkOpening Balance 306,561 267,666 288,789 Transfer to Reserve 48,064 45,801 47,073 Interest Transfer to Reserve 14,398 11,274 24,638 Transfer from Reserve (260,000) (18,180) (20,325)

109,023 306,561 340,175

Sutherlands ParkOpening Balance 137,310 71,857 71,675 Transfer to Reserve 64,681 62,376 64,612 Interest Transfer to Reserve 6,449 3,077 6,115 Transfer from Reserve 0 0 (40,562)

208,440 137,310 101,840

Harmony FieldsOpening Balance 31,601 110,451 570,221 Transfer to Reserve 18,121 18,194 16,859 Interest Transfer to Reserve 1,484 976 48,649 Transfer from Reserve 0 (98,020) (395,000)

51,206 31,601 240,729

Administration Building ConstructionOpening Balance 864,799 363,274 499,700 Transfer to Reserve 253,542 558,453 558,453 Interest Transfer to Reserve 40,616 19,600 42,632 Transfer from Reserve (134,350) (76,528) (130,000)

1,024,607 864,799 970,785

Maddington / Kenwick RevitalisationOpening Balance 3,470,960 2,495,579 2,507,157 Transfer to Reserve 0 1,607,415 1,000,000 Interest Transfer to Reserve 163,018 100,667 213,899 Transfer from Reserve (1,604,573) (732,701) (3,552,039)

2,029,405 3,470,960 169,017

Mills ParkOpening Balance 148,275 101,125 102,324 Transfer to Reserve 36,201 42,242 35,595 Interest Transfer to Reserve 6,964 4,908 8,730 Transfer from Reserve 0 0 0

191,440 148,275 146,649

Langford Oval RedevelopmentOpening Balance 65,033 46,119 49,128 Transfer to Reserve 17,549 16,751 17,549 Interest Transfer to Reserve 3,054 2,163 4,191 Transfer from Reserve (40,000) 0 (40,000)

45,636 65,033 30,868



21


$ $ $

Gosnells Oval RedevelopmentOpening Balance 191,364 133,974 102,813 Transfer to Reserve 52,409 51,266 35,155 Interest Transfer to Reserve 8,988 6,124 8,772 Transfer from Reserve 0 0 0

252,761 191,364 146,740

Public Open SpaceOpening Balance 9,691,705 7,253,261 6,985,922 Transfer to Reserve 1,000,000 2,637,047 1,000,000 Interest Transfer to Reserve 455,184 315,207 596,008 Transfer from Reserve (3,350,699) (513,810) (221,300)

7,796,190 9,691,705 8,360,630

Operations CentreOpening Balance 421,475 406,061 417,480 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 19,795 15,414 35,618 Transfer from Reserve (340,000) 0 (364,455)

101,270 421,475 88,643

Development Contributions to InfrastructureOpening Balance 135,219 107,923 98,614 Transfer to Reserve 50,000 22,100 0 Interest Transfer to Reserve 6,351 5,196 8,413 Transfer from Reserve 0 0 0

191,570 135,219 107,027

Recreation and Culture InfrastructureOpening Balance 101,580 0 0 Transfer to Reserve 103,000 100,000 100,000 Interest Transfer to Reserve 4,771 1,580 0 Transfer from Reserve 0 0 0

209,351 101,580 100,000

Staff Retention ReserveOpening Balance 0 0 0 Transfer to Reserve 30,000 0 0 Interest Transfer to Reserve 0 0 0 Transfer from Reserve 0 0 0

30,000 0 0

TPS7Opening Balance 55,673 53,338 53,308 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 2,615 2,335 4,548 Transfer from Reserve 0 0 0

58,288 55,673 57,856



22


$ $ $

TPS9AOpening Balance 1,069,417 1,054,463 1,115,087 Transfer to Reserve 25,000 0 25,000 Interest Transfer to Reserve 50,227 45,437 95,134 Transfer from Reserve (580,000) (30,483) (631,000)

564,644 1,069,417 604,221

TPS10Opening Balance 8,098 7,758 7,754 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 380 340 662 Transfer from Reserve 0 0 0

8,478 8,098 8,416

TPS15Opening Balance 322,325 313,681 312,538 Transfer to Reserve 25,000 0 25,000 Interest Transfer to Reserve 15,138 13,644 26,664 Transfer from Reserve (5,000) (5,000) (5,000)

357,463 322,325 359,202

TPS17Opening Balance 227,752 315,685 656,144 Transfer to Reserve 50,000 29,268 100,000 Interest Transfer to Reserve 10,697 8,185 55,979 Transfer from Reserve (5,000) (125,386) (453,190)

283,449 227,752 358,933

TPS20Opening Balance 697,015 584,276 493,278 Transfer to Reserve 100,000 89,981 100,000 Interest Transfer to Reserve 32,736 28,838 42,084 Transfer from Reserve (205,000) (6,080) (205,000)

624,751 697,015 430,362

Canning Vale ODPOpening Balance 40,361 1,341,455 1,265,949 Transfer to Reserve 250,000 118,038 250,000 Interest Transfer to Reserve 1,896 20,473 108,005 Transfer from Reserve (346,736) (1,439,605) (1,208,988)

(54,479) 40,361 414,966

ODP Southern Precinct 5Opening Balance 342,229 332,749 332,637 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 16,073 14,480 28,379 Transfer from Reserve (325,000) (5,000) (330,000)

33,302 342,229 31,016



23


$ $ $

ODP Southern Precinct 3Opening Balance 64,951 62,225 62,191 Transfer to Reserve 0 0 0 Interest Transfer to Reserve 3,051 2,726 5,306 Transfer from Reserve 0 0 0

68,002 64,951 67,497

ODP Southern River Precinct 2Opening Balance 2,012,126 1,512,847 1,506,225 Transfer to Reserve 500,000 438,010 250,000 Interest Transfer to Reserve 94,502 81,269 128,504 Transfer from Reserve (450,000) (20,000) (445,000)

2,156,628 2,012,126 1,439,729

ODP Southern Precinct 1Opening Balance 750,365 723,764 723,434 Transfer to Reserve 250,000 0 250,000 Interest Transfer to Reserve 35,242 31,601 61,720 Transfer from Reserve (5,000) (5,000) (5,000)

1,030,607 750,365 1,030,154

ODP Campbell EstateOpening Balance 5,664,210 3,291,134 3,286,524 Transfer to Reserve 500,000 2,218,936 250,000 Interest Transfer to Reserve 266,027 174,140 280,393 Transfer from Reserve (195,646) (20,000) (90,000)

6,234,591 5,664,210 3,726,917

Total Cash Backed Reserves 32,659,747 35,968,531 28,518,091

All of the above reserve accounts are to be supported by money held in financial institutions.


CITY OF GOSNELLS

24


6. RESERVES (Continued) $ $ $

Summary of TransfersTo Cash Backed Reserves

MGB Plant and Equipment 730,280 637,652 536,565 4,017 3,128 7,056

Netball Courts - Resurfacing 334 260 585 Performing Arts Centre 21,764 20,774 26,842 Waste Disposal Site Development 191,195 148,887 334,422 Refuse Disposal Site Rehabilitation 81,531 64,253 69,194 Hillside Farm Equipment 92 72 161 Insurance 17,918 13,952 31,340 Southern River Contaminated Site Rehabilitation 28,381 25,099 56,698 Building Construction 19,519 15,200 44,913 Local Government Elections 108,726 103,706 113,263 Rate Revaluation 112,462 93,959 98,230 Gosnells Town Centre Revitalisation 79,877 1,287 42,035 Plant and Equipment 1,190,401 1,171,609 1,251,677 Walter Padbury Park 62,462 57,075 71,711 Sutherlands Park 71,130 65,453 70,727 Harmony Fields 19,605 19,170 65,508 Administration Building Construction 294,158 578,053 601,085 Maddington / Kenwick Revitalisation 163,018 1,708,082 1,213,899 Mills Park 43,165 47,150 44,325 Langford Oval Redevelopment 20,603 18,914 21,740 Gosnells Oval Redevelopment 61,397 57,390 43,927 Public Open Space 1,455,184 2,952,254 1,596,008 Operations Centre 19,795 15,414 35,618 Developer Contributions to Infrastructure 56,351 27,296 8,413 Recreation and Culture Infrastructure 107,771 101,580 100,000 Staff Retention Reserve 30,000 0 0 TPS7 2,615 2,335 4,548 TPS9A 75,227 45,437 120,134 TPS10 380 340 662 TPS15 40,138 13,644 51,664 TPS17 60,697 37,453 155,979 TPS20 132,736 118,819 142,084 Canning Vale ODP 251,896 138,511 358,005 ODP Southern Precinct 5 16,073 14,480 28,379 ODP Southern Precinct 3 3,051 2,726 5,306 ODP Southern Precinct 2 594,502 519,279 378,504 ODP Southern Precinct 1 285,242 31,601 311,720 ODP Campbell Estate 766,027 2,393,076 530,393 Total Transfer to/(from) Reserves 7,219,720 11,265,370 8,573,320



Leisure World - Mechanical/Plant Services

25


6. RESERVES (Continued) $ $ $

Transfers from ReservesMGB Plant and Equipment (1,008,000) (73,196) (72,500)

0 0 (6,600) Netball Courts - Resurfacing 0 0 0 Performing Arts Centre 0 (19,761) (22,000) Waste Disposal Site Development 0 0 0 Refuse Disposal Site Rehabilitation 0 0 (103,000) Hillside Farm Equipment 0 0 0 Insurance 0 0 0 Southern River Contaminated Site Rehabilitatio (100,000) (85,871) (100,000) Building Construction 0 0 0 Local Government Elections 0 (135,082) (141,500) Rate Revaluation 0 (200,000) 0 Gosnells Town Centre Revitalisation (18,500) (334) (19,000) Plant and Equipment (1,555,000) (1,369,756) (2,605,560) Walter Padbury Park (260,000) (18,180) (20,325) Sutherlands Park 0 0 (40,562) Harmony Fields 0 (98,020) (395,000) Administration Building Construction (134,350) (76,528) (130,000) Maddington / Kenwick Revitalisation (1,604,573) (732,701) (3,552,039) Mills Park 0 0 0 Langford Oval Redevelopment (40,000) 0 (40,000) Gosnells Oval Redevelopment 0 0 0 Public Open Space (3,350,699) (513,810) (221,300) Operations Centre (340,000) 0 (364,455) Developer Contributions to Infrastructure 0 0 0 Recreation and Culture Infrastructure 0 0 0 Staff Retention Reserve 0 0 0 TPS7 0 0 0 TPS9A (580,000) (30,483) (631,000) TPS10 0 0 0 TPS15 (5,000) (5,000) (5,000) TPS17 (5,000) (125,386) (453,190) TPS20 (205,000) (6,080) (205,000) Canning Vale ODP (346,736) (1,439,605) (1,208,988) ODP Southern Precinct 5 (325,000) (5,000) (330,000) ODP Southern Precinct 3 0 0 0 ODP Southern Precinct 2 (450,000) (20,000) (445,000) ODP Southern Precinct 1 (5,000) (5,000) (5,000) ODP Campbell Estate (195,646) (20,000) (90,000)

Total Transfer to/(from) Reserves (10,528,504) (4,979,793) (11,207,019)


CITY OF GOSNELLS

Leisure World - Mechanical/Plant Services

NOTES TO AND FORMING PART OF THE BUDGET

26

6. RESERVES (Continued)

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

MGB Plant and Equipment - acquisition of rubbish plant and associated equipment (including bins).Leisure World - Mechanical/Plant Services - purchase and/or major repair of plant located at the Leisure World complex.Netball Courts - Resurfacing - resurfacing of the Southern Districts Netball Courts in Langford as required.Performing Arts Centre - construction, equipping and assessment of Don Russell Performing Arts Centre.Waste Disposal Site Development

Refuse Disposal Site Rehabilitation - rehabilitation of the Kelvin Road Refuse Disposal Site following future closure.Hillside Farm Equipment - to fund future purchases of equipment at Hillside Farm.Insurance - to provide funds in case of calls on Councils participating in the self-insurance scheme.Southern River Contaminated Site Rehabilitation - for expenditure associated with the rehabilitation of the Southern River contaminated site.Building Construction

Local Government Elections - for expenditure associated with holding of Local Government elections.Rate Revaluation - for expenditure associated with the revaluation of properties on which council raises rates.Gosnells Town Centre Revitalisation - to fund the cost of redeveloping the Gosnells Town Centre.Plant and Equipment

- to fund replacement or new acquisition of plant and associated equipment.Walter Padbury Park

- to provide future works at Walter Padbury park as determined by Council.Sutherlands park - to fund future works at Sutherlands Park.Harmony Fields (formerly known as Maddington Golf Course) - to provide future expenditure at Harmony Fields.Administration Building Construction

- to fund expenditure on a new Administration Building.Maddington / Kenwick Revitalisation

- to fund the cost of urban renewal in Maddington Kenwick.Mills Park

- to assist with the development of Mills Park.Langford oval Redevelopment

- to assist with the development of Langford Oval from phone tower revenues.Gosnells Oval Redevelopment

CITY OF GOSNELLS

- replacement of or work to extend the life of the Kelvin Road Refuse Disposal Site and/or funding towards entry cost to a regional site

- new or refurbished building activity & major building plant replacement.

- to fund Council's expenditure on Gosnells Oval from the income derived from telco tower leases.


27

6. RESERVES (Continued)

Public Open Space

Operations Centre - to fund Council's expenditure on redeveloping Gosnells operations centre .

Developer Contributions for Future Infrastructure - to fund future expenditure on developments that fall outside of a TPS or ODP.

Recreation and Culture Infrastructure - to fund future expenditure on Recreational and Cultural Infrastructure.

Staff Retention Reserve - to fund future director bonuses.

TPS7 - to fund expenditure on developments within the TPS site with contributions from developers .

TPS9A - to fund expenditure on developments within the TPS site with contributions from developers .





Canning Vale ODP - to fund expenditure on developments within the ODP site with contributions from developers .

ODP Southern Precinct 5 - to fund expenditure on developments within the ODP site with contributions from developers .




ODP Campbell Estate - to fund expenditure on developments within the ODP site with contributions from developers .

The timing of expenditure from reserves is varied depending upon the timing of projects

Equity transfers are movements between reserve funds.



- to fund infrastructure expenditure arising out of the need to meet our obligations in respect of contributions in lieu of Public Open Space.

Refer to the Supplementary Information (pages 40 - 49) for plans of the Town Planning Scheme and ODP (Outline Development Plan) areas.

28

2008/09 2007/08Budget Actual

$ $7. NET CURRENT ASSETS

Composition of Estimated Net Current Asset Position

CURRENT ASSETS

Cash - Unrestricted 6,541,355 19,279,036Cash - Restricted 32,659,747 35,968,531Receivables 2,455,911 2,870,770Inventories 315,865 352,775

41,972,878 58,471,112

LESS: CURRENT LIABILITIES

Payables and Provisions (8,913,131) (9,389,302)

NET CURRENT ASSET POSITION 33,059,747 49,081,810

Less: Cash - Restricted (32,659,747) (35,968,531)

ESTIMATED SURPLUS/(DEFICIENCY) C/FWD 400,000 13,113,279

The estimated surplus/(deficiency) c/fwd in the 2007/08 actual column represents the surplus(deficit) brought forward as at 1 July 2008.

The estimated surplus/(deficiency) c/fwd in the 2008/09 budget column represents the surplus(deficit) carried forward as at 30 June 2009.



29



8. RATING INFORMATION - 2008/09 FINANCIAL YEAR

2008/09 2008/09 2008/09 2008/09Number Budgeted Budgeted Budgeted Budgeted

of Rateable Rate Interim Back Total 2007/08Rate in Properties Value Revenue Rates Rates Revenue Actual

$ $ $ $ $ $ $Differential General RateGRV

7.0000 375 50,160,017 (3,511,201) (100,000) 0 (3,611,201) (4,207,595) 9.1000 35 835,450 (76,026) 0 0 (76,026) (68,658)

13.3000 3 324,000 (43,092) 0 0 (43,092) (41,434) 7.0000 2 144,500 (10,115) 0 0 (10,115) (11,433) 7.0000 721 39,069,700 (2,734,879) (60,000) 0 (2,794,879) (2,410,421) 9.1000 70 1,596,228 (145,257) (10,000) 0 (155,257) (133,302) 7.0000 120 1,390,504 (97,335) 0 0 (97,335) (97,576) 9.1000 0 0 0 0 0 0 0 8.4000 88 3,996,454 (335,702) 0 0 (335,702) (184,777) 7.0000 18,057 223,889,478 (15,672,263) (483,321) 0 (16,155,584) (15,771,343) 9.1000 2,132 24,968,540 (2,272,137) (50,000) 0 (2,322,137) (1,305,141) 8.4000 676 12,316,534 (1,034,589) 0 0 (1,034,589) (689,012)

Gosnells Town Centre 8.0500 87 7,078,698 (569,835) 0 0 (569,835) 0

UV0.1190 4 6,500,000 (7,735) 0 0 (7,735) (7,700) 0.1990 229 213,208,550 (424,285) 0 0 (424,285) (366,291) 0.1590 25 90,185,000 (143,394) 0 0 (143,394) (155,995)

Sub-Totals 22,624 675,663,653 (27,077,845) (703,321) 0 (27,781,166) (25,450,678) Minimum

Minimum Rates $GRV

659 69 (45,471) 0 0 (45,471) (42,420) 659 2 (1,318) 0 0 (1,318) (1,212) 659 0 0 0 0 0 (606) 659 108 (71,172) 0 0 (71,172) (60,600) 659 29 (19,111) 0 0 (19,111) (10,302) 659 15,974 (10,526,866) 0 0 (10,526,866) (8,596,110) 659 235 (154,865) 0 0 (154,865) (539,340) 659 127 (83,693) 0 0 (83,693) (70,296)

Gosnells Town Centre 659 3 (1,977) 0 0 (1,977) 0

UV659 5 (3,295) 0 0 (3,295) (3,030)

Sub-Totals 16,552 0 (10,907,768) 0 0 (10,907,768) (9,323,916) (38,688,934) (34,774,594)

Specified Area Rates (Note 9) (253,537) (254,897) Totals (38,942,471) (35,029,491)

Kennel Area Improved

The minimum rates have been determined by Council on the basis that all ratepayers must make a reasonable contribution to the cost of the Local Government services/facilities.

Residential ImprovedResidential VacantRural GRV

Rural UV

The general rates detailed above for the 2008/09 financial year have been determined by Council on the basis of raising the revenue required to meet the deficiency between the total estimated expenditure proposed in the budget and the estimated revenue to be received from all sources other than rates and also considering the extent of any increase in rating over the level adopted in the previous year.

All land except exempt land in the City of Gosnells is rated according to its Gross Rental Value (GRV) in townsites or Unimproved Value (UV) in the remainder of the City.

Commercial ImprovedCommercial VacantGolf CoursesIndustrial Improved

Rural GRV

Residential Development UVRural UVRural UV Agricultural Concession

Kennel Area VacantResidential Development GRVResidential ImprovedResidential Vacant

Golf CoursesIndustrial ImprovedIndustrial VacantKennel Area Improved

RATE TYPE

Commercial ImprovedCommercial VacantExtractive Industry

30

8. RATING INFORMATION - 2008/09 FINANCIAL YEAR (Continued)

(i)

(ii)

(iii)

Objects and reasons:

Minimum Rates

A uniform minimum rate is applied to all rate categories. The imposition of a minimum rate is inrecognition that every property receives some minimum level of benefit from services provided andas such Council has adopted an appropriate minimum rate to take this into consideration.

Objects of, and reasons for, proposed rates

Objects of, and reasons for, proposed rates

The resident owner derives his/her livelihood from Uses include, but not limited to, grazing, dairying, tree farming, and animal husbandry.

Residential Development UVThe lower rate-in-the-dollar has been applied to rural-use properties in the Residential Developmentzone due to the higher values applied to these properties because of their proximity to urbandevelopment.

Rural UV Agricultural ConcessionA concession of 20% off the Rural UV rate is offered to owners of rural properties who meet certaincriteria.

Continuous ownership since 01 July 1986Minimum lot area of 20,200 square metres

A higher rate-in-the-dollar has been applied to Extractive Industry as Council considers itappropriate given the impact this activity has on the road infrastructure and the environment.

Unimproved Value Areas

The rates-in-the-dollar are calculated to provide the shortfall in income required to enable Council toprovide necessary works and services in the 2008/09 financial year.

A higher rate-in-the-dollar is applicable to all commercial properties in the Gosnells Town Centre torecognise both the investment by the City in the Town Centre Revitalisation project and theadditional operational expenses associated with the ongoing level of service provided.

The rates-in-the-dollar are calculated to provide the shortfall in income required to enable Council toprovide necessary works and services in the 2008/09 financial year.

A higher uniform rate-in-the-dollar for vacant land is applicable to all categories at 130% of the rateimposed on improved land. Council has chosen to levy this higher rate on vacant land in an effortto promote development of all properties to their full potential thereby stimulating growth anddevelopment in all areas of our community.

A higher rate-in-the-dollar has been applied to Rural GRV and Residential Development GRVbecause Gross Rental Values do not adequately take into consideration the value of larger landholdings.



Gross Rental Areas

31

9. SPECIFIED AREA RATE - 2008/09 FINANCIAL YEAR

Rate in Basis Rateable 2008/09 Budget 2007/08$ of Value Budgeted Applied Actual

Rate Revenue to Costs $ $ $

The Avenues 0.005089 498 7,421,000 (37,766) (37,766) (34,928) Sanctuary Waters 0.004878 688 11,403,669 (55,627) (55,627) (52,123) The Reserve 0.004216 301 5,026,950 (21,194) (21,194) (20,818) Brookland Greens 0.006315 546 9,626,069 (60,789) (60,789) (56,737) Brookland Park 0.005540 308 4,582,430 (25,386) (25,386) (19,615) The Boardwalk 0.004738 622 11,138,694 (52,775) (52,775) (70,676)

(253,537) (253,537) (254,897)

Purpose for the rate and proposed applicant of proceeds:

Description of the areas in which rates are to be applied:

The AvenuHousing development known as "The Avenues" Sanctuary Housing development known as "Sanctuary Waters" The ReservHousing development known as "The Reserve" Brookland Housing development known as "Brookland Greens" Brookland Housing development known as "Brookland Park" The BoardwHousing development known as "The Boardwalk"

10. SERVICE CHARGES - 2008/09 FINANCIAL YEAR

Nil

To recover in each Specified Area up to 25% of the park maintenance cost incurred by Council.

Refer to Supplementary Information (pages 50 - 55) for plans of the Specirfied Area Rate areas.



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11. FEES & CHARGES REVENUE $ $

Governance (25,100) (25,999) General Purpose Funding (346,000) (348,249) Law, Order, Public Safety (217,750) (213,385) Health (94,330) (103,658) Education and Welfare (422,560) (390,575) Community Amenities (7,649,876) (7,023,291) Recreation & Culture (2,118,780) (2,366,477) Transport (51,000) (53,005) Economic Services (1,599,775) (1,779,847) Other Property & Services (182,512) (187,418)

(12,707,683) (12,491,904)

12. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS- 2008/09 FINANCIAL YEAR

INCENTIVE A

INCENTIVE B

Centro Maddington will offer the chance for 4 residents to have their rates refunded in cash by Centro Maddington, up to a maximum value of $1000 per ratepayer.

An incentive for the early payment of rates is offered as follows:

Five prizes of $1,000 each funded by the City of Gosnells will be drawn on a random basis as an incentive for the early payment of rates and charges, in full.

Challenge Bank will also provide a $2,000 savings account.



Inclusion in the draw will be automatic for all ratepayers who have paid their rates in full by theadvertised due date of the first instalment.

Winners will be notified by mail and the results published in a newspaper circulating in the district.

Councillors and employees of the City of Gosnells and their immediate families are ineligible toenter.

An incentive for the early payment of rates is offered as follows:

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13. INTEREST CHARGES AND INSTALMENTS - 2008/09 FINANCIAL YEAR

2nd Instalment Due Date:3rd Instalment Due Date:4th Instalment Due Date:

Estimate of the income from the imposition of this charge is $170,000

LATE PAYMENT INTEREST CHARGE

Estimate of the income from the imposition of this charge is $180,131

ADMINISTRATION FEES

Estimated income from the fee is $260,000

Payment in full by the due date No feePayment of the advertised instalment plan $15.00Payment by special arrangement $25.00


14. COUNCILLORS’ REMUNERATION $ $

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

Meeting Fees 91,000 91,000Mayor’s Allowance 60,000 60,000Deputy President's Allowance 9,000 9,000Travelling Expenses 13,500 13,500Telecommunications Allowance 18,000 18,000

191,500 191,500

Administration fees will be applied to the payment of rates and charges (excluding eligible pensioners)as follows:

March 6, 2009

Interest at the rate of 11% per annum will be charged on a daily basis on all rates and service chargesunpaid as at the due date.

Payment in full or first instalment August 29, 2008October 31, 2008



The instalment option attracts interest calculated at the rate of 5.5% per annum charged on a dailybasis on all rates and service charges. Arrears are payable in the first instalment and continue toattract penalty interest until paid.

January 9, 2009

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15. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash

For the purposes of the cash flow statement, cash includes cash and cash equivalents,net of outstanding bank overdrafts. Estimated cash at the end of the reporting periodis as follows:


$ $ $

Cash - Unrestricted (6,541,355) (19,279,036) (10,346,494) Cash - Restricted (32,659,747) (35,968,531) (25,518,091)

(39,201,102) (55,247,567) (35,864,585)

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

Reserves (32,659,747) (35,968,531) (25,518,091) (32,659,747) (35,968,531) (25,518,091)

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

Net Result (13,523,229) (11,138,153) (11,076,886)

Amortisation (161,000) (161,000) (161,000) Depreciation (13,054,427) (13,032,240) (13,032,263) Profit/(Loss) on Sale of Asset 4,058,248 26,407 4,056,700 Increase/(Decrease) in Receivables 757,850 542,519 87,794 Increase/(Decrease) in Inventories 96,619 65,712 (39,722) (Increase)/Decrease in Payables (799,592) 3,154,868 2,469,229 (Increase)/Decrease in Employee Provisions (30,475) (97,208) (340,951) Grants/Contributions for the Development of Assets 12,844,657 9,809,976 10,246,998 Net Cash from Operating Activities (9,811,349) (10,829,119) (7,790,101)

(c) Undrawn Borrowing FacilitiesCredit Standby ArrangementsBank Overdraft limit 0 0 0 Bank Overdraft at Balance Date 0 0 0 Credit Card limit 30,000 30,000 30,000 Credit Card Balance at Balance Date 0 0 0 Total Amount of Credit Unused 30,000 30,000 30,000

Loan FacilitiesLoan Facilities in use at Balance Date 37,755,000 12,500,000 27,883,300

Unused Loan Facilities at Balance Date 0 18,953,000 0

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16. TRUST FUNDS

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

Balance Amounts Amounts BalanceDetail 01-Jul-08 Received Paid 30-Jun-09

$ $ ($) $

BCITF Levy (100,000) (500,000) 500,000 (100,000) BRB Levy (30,000) (50,000) 50,000 (30,000)

(130,000) (130,000)



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17. MAJOR LAND TRANSACTIONS

Former Gosnells Library Site

(a) Details

The site is to be sold and the funds used to pay for the development of Pioneer Park


(b) Current year transactions $ $

Operating Income- Profit on sale (1,200,000) 0

Capital Income- Sale Proceeds (1,200,000) 0

Capital Expenditure- Purchase of Land 0 0 - Development Costs 0 0

0 0

(c) Expected Future Cash Flows2008/09 2009/10 2010/11 2011/12 2012/13 Total

$ $ $ $ $ $Cash Outflows- Development Costs 0 0 0 0 0 0 - Loan Repayments 0 0 0 0 0 0

0 0 0 0 0 0 Cash Inflows- Loan Proceeds 0 0 0 0 0 0 - Sale Proceeds (1,200,000) 0 0 0 0 (1,200,000)

(1,200,000) 0 0 0 0 (1,200,000)

Net Cash Flows (1,200,000) 0 0 0 0 (1,200,000)

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Harmony Field Redevelopment

(a) Details

Redevelopment of the former Maddington Golf Course now named Harmony Fields. The project plan allows for the construction of a pavilion, active sporting reserve and a passive reserve area.

Funding will be derived from the sale of the small parcel of land around the edges of the area for residential development and the Tonkin Highway on ramp and various small reserves within Maddington and the sale of 10 Alloa Road Maddington.



Operating Income- Profit on sale (5,385,000) 0

Capital Income- Sale Proceeds (5,385,000) 0

Capital Expenditure- Purchase of Land 0 0 - Development Costs 0 0

0 0


$ $ $ $ $ $Cash Outflows- Development Costs 0 0 0 0 0 0 - Loan Repayments 5,385,000 1,115,000 0 0 0 6,500,000

5,385,000 1,115,000 0 0 0 6,500,000 Cash Inflows- Loan Proceeds 0 0 0 0 0 0 - Sale Proceeds (5,385,000) (1,850,000) 0 0 0 (7,235,000)

(5,385,000) (1,850,000) 0 0 0 (7,235,000)

Net Cash Flows 0 (735,000) 0 0 0 (735,000)

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Lot 8 Corner Holmes Street and Warton Rd, Southern River Development

(a) Details

Council intends to develop the 6 Hectare site for subdivision with the profits to be used to partially offset the cost of the construction of the new Civic Centre.The initial development of the site will be funded by a loan from Treasury.



Operating Income- Profit on sale 0 0

Capital Income- Sale Proceeds 0 0

Capital Expenditure- Purchase of Land 0 0 - Development Costs 5,780,000 0

5,780,000 0


$ $ $ $ $ $Cash Outflows- Development Costs 5,780,000 0 0 0 0 5,780,000 - Loan Repayments 460,000 6,480,000 0 0 0 6,940,000

6,240,000 6,480,000 0 0 0 12,720,000 Cash Inflows- Loan Proceeds (6,480,000) 0 0 0 0 (6,480,000) - Sale Proceeds 0 (21,000,000) 0 0 0 (21,000,000)

(6,480,000) (21,000,000) 0 0 0 (27,480,000)

Net Cash Flows (240,000) (14,520,000) 0 0 0 (14,760,000)

18. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

It is not anticipated any trading undertakings or major trading undertakings will occur in 2008/09.

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2008/2009 Budget Supplementary Information Town Planning Scheme Area Plans: Town Planning Scheme No. 9A 40 Town Planning Scheme No. 15 41 Town Planning Scheme No. 17 42 Town Planning Scheme No. 20 43 Outline Development Plans Canning Vale 44 Southern River (Precinct No. 2) Draft 45 Southern River (Precinct No. 3) Draft 46 Southern River (Precinct No. 5) 47 Southern River (Precinct No. 1) 48 West Canning Vale 49

Specified Area Rate Plans The Avenues 50 Sanctuary Waters 51 Brookland Greens and Surrounds 52 Brookland Park and Surrounds 53 The Boardwalk and Surrounds 54 The Reserve and Surrounds 55

CITY OF GOSNELLS NOTES TO AND FORMING PART OF THE BUDGET

FOR THE YEAR ENDED 30th JUNE 2009

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city of gosnells branch synopses · depreciation 2(a) 13,215,427 13,193,240 13,193,263 interest...

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