financial management report - october 2017

Ordinary Meeting of Council 13 December 2017

5.2 FINANCIAL MANAGEMENT REPORT - OCTOBER 2017

Ward: (All Wards) (Financial Services and Rates)

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Stakeholder Relations)

KEY ISSUES

• This report provides Council with the suite of financial management reports in order for Council to monitor the financial performance and position of the City.

• A summary page has been developed that includes high level financial information, commentary and graphical representation from the various statements and schedules included in the report.

• Statements included are Financial Activity, Rate Setting, Cash Flow, Comprehensive Income, Financial Position, Changes in Equity, Capital Jobs, Cash and Investments and Net Current Funding.

• A Debtors Schedule has been included that lists the top 10 non-rate debtors (in value). For privacy purposes the names of the debtors are not included, however the report provides insight into the management of the aged debtors.

It is recommended that Council resolve to note the monthly financial management reports for the period ended 31 October 2017.

BACKGROUND

Section 6.4 of the Local Government Act 1995 requires an annual financial report to be prepared as well as such other financial reports as prescribed.

Regulation 34(1) of the Local Government (Financial Management) Regulations 1996 (the Regulations) requires a local government to prepare each month a statement of financial activity reporting on the income and expenditure, as set out in the annual budget. The statement of financial activity is to be supported by such information as is considered relevant by the local government.

A statement of financial activity and any accompanying documents are to be presented at the next ordinary council meeting following the end of the month to which the statement relates, or to the next ordinary council meeting after that meeting.

In addition under regulation 34(5) of the Regulations each financial year, local government is to adopt a percentage or value, calculated in accordance with Australian Accounting Standards to be used in the statement of financial activity for reporting material variances.


The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and position of the City. The materiality threshold adopted by Council, together with the Annual Budget for 2017/2018 is variances greater than 10% of the original adopted budget and a value greater than $10,000.

DETAILS

The financial management report for the period ended 31 October 2017 is included as an attachment to this report.

As the information contained in the Statement of Financial Activity is repeated in the Statements of Comprehensive Income and Financial Position, the analysis of the information is included below.

1. Statement of Comprehensive Income

Actual Revenue from ordinary activities for the year to date is $153.9m, this is below budget by $3.6m.

Expenditure from ordinary activities for the year to date is $48.7m, this is less than budget by $5.1m.

The net result is $114.7m surplus compared to $109.1m budgeted year to date.

2. Statement of Financial Position

Trade and Other Receivables have decreased by $14.9m primarily due to final notices, interim rates and second instalments being due. This was offset by an increase in Cash and Cash Equivalents of $3.9m contributing to the net decrease in Current Assets of $10.2m in October.

Property, Plant and Equipment has increased by $1.7m for the month of October. Capital works expenditure within the Altone Leisure Centre project has contributed to this increase.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of October 2017 with a balance of $198.1m. Cash and Cash Equivalents at the end of October 2016 reflected a balance of $177.4m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending 31 October 2017.


STRATEGIC IMPLICATIONS

Consistent with the City's Strategic Community Plan 2017-2027 Key Result Area - Governance

Objectives: G1.1 - Provide accountable and transparent leadership, and G2.1 - Improve capability and capacity.

Monitoring performance by comparison of budget and actual is an essential management tool to ensure financial performance within acceptable pre determined limits.

STATUTORY IMPLICATIONS

Section 6.4 of the Local Government Act 1995 and regulation 34(1) of the Local Government (Financial Management) Regulations 1996

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolve to:

1) Note the financial statements and report for the month ended 31 October 2017 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

31st October 2017

Contents

1.0 Financial Summary 1.0

2.0 Statements of Comprehensive Income 2.1 By Nature & Type 2.2 By Program 2.3

3.0 Statements of Financial Position & Equity 3.1 Statement of Financial Position 3.2 Statement of Changes in Equity 3.3

4.0 Capital Payment 4.1 Capital Works Schedules 4.2 - 4.

5.0 Cash and Investments 5.1 Investment Report 5.2 - 5.4

6.0 Debtors Rates Debtors 6.1 Sundry Debtors 6.2

7.0 Statement of Financial Activity 7.1 - 7.3 (With Variance Analysis Commentary)

Statement of Financial Activity 7.4 Net Current Funding Position 7.5 Liquidity Over Three Years 7.5

8.0 Other Statutory Reports 8.1 Statement of Cash Flow 8.2 Rate Setting Statement 8.3

1.0

City of Swan - Financial Management SummaryReport for the period ended 31st October 2017

2.0 Statement of Comprehensive Income (Performance)

Year to 31st October 2017 Annual AnnualBudget Bgt Var

$000's %

Revenue 153,900 157,466 -2% 178,072 86%

Expenses (48,726) (53,821) -10% (160,157) 30%

Profit/Loss 105,174 103,645 1% 17,915 587%

Non-operating 9,557 5,412 43% 44,669 21%

Net Result 114,731 109,057 5% 62,584 183%

3.0 Statement of Financial Position2017 2017 2017June September October$000's $000's $000's

Current

Assets 158,756 279,396 269,216

Liabilities 39,521 35,808 37,199

Non Current

Assets 1,566,565 1,569,259 1,570,923

Liabilities 44,996 47,087 47,405

Net Assets 1,640,804 1,765,760 1,755,535

4.0 Capital PaymentsYear to 31st October 2017 Annual Annual

October Actual/Comm Budget Var Budget Bgt Var

$000's $000's % $000's %

Buildings 3,656 6,800 54% 20,400 18%Drainage 1,944 1,516 128% 4,549 43%

Footpaths 371 376 99% 1,128 33%Parks 4,475 4,053 110% 12,160 37%

Roads 9,046 14,170 64% 42,509 21%P&E, Other 9,313 9,025 103% 27,074 34%

Total 28,805 35,940 80% 107,820 27%

5.0 Cash and InvestmentsVolume Held

September October Ave Interest$000's $000's %

Cash 16,918 21,655 1.2%Term Deposits 177,200 176,400 2.6%

Total 194,118 198,055 2.0%

6.0 Debtors September October Change

$000's $000's %Trade Debtors

Current 354 210 -41%> 30 Days 20 106 430%> 60 Days 200 11 -95%> 90 Days 592 718 21%

Total Trade 1,166 1,045 -10%Rates Debtors

Rates Debtors 66,843 53,671 -20%Other Debtors 8,920 7,341 -18%

Total Debtors 76,929 62,057 -19%

Actual '$000's Budget '$000's Variance

%

The City achieved a net result of $115m, exceeding ytd budget by 5%.Revenue was 2% or $3.6m below budget largely due to an adjustment

processed at the beginning of the year for rates payments made inadvance.

The positive variance of $5.1m for Operating Expenses includes $3.1mfor Materials & Contracts and $1.1m for Employee Costs. This is due totiming differences and vacant positions. Below budget spend for otheremployee related expenditure also added to the variance.

Non-operating income showed a favourable result of $4.1m. Thefollowing Capital grants were received at the beginning of the current yearinstead of the prior year where they were scheduled: Midland YouthServices Hub $1.6m, Ethel Warren Bullsbrook Community Centre $500k,Halden Road $576k, Maralla Road $322k and Cunningham Road $442k.

The October 2017 Cash and Cash Equivalents balancewas $198.1m, $20.7m higher than in October 2016.

To date the City has received 65% or $78m of rateslevied compared to 50% or $55m for the same period lastyear. Rates were issued earlier in 2017/18 compared to2016/17, resulting in the second instalment being due inOctober 2017 in contrast to November in the prior year.

The City's return on investment was 2.42% pa,exceeding the bank bill index of 1.72% pa by 0.70%

The RBA left the cash rate unchanged at 1.5%.

Trade and Other Receivables have decreased by$14.9m primarily due to final notices, interim rates andsecond instalments being due. This was offset by anincrease in Cash and Cash Equivalents of $3.9mcontributing to the net decrease in Current Assets of$10.2m in October.

The decrease in Trade and Other Receivablescontributed to the Current Ratio decreasing slightly to5.56.

Property, Plant and Equipment has increased by$1.7m for the month of October. Capital worksexpenditure within the Altone Leisure Centre project hascontributed to this increase.

1.56

6.25

5.56

1.00 1.00 1.00

- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

June 17 Sep-17 Oct-17

C.Assets C.Liabilities

Total spend for Capital works was $28.8m, consisting of $16.1m actualcosts and $12.7m committed costs.

Ytd expenditure for Buildings was $3.7m against $6.8m ytd budget. AltonePark Leisure Centre accounted for $1.4m of the total spend.

Roads have expended $9m against $14.2m ytd budget with HazelmereIndustrial Area Infrastructure Road accounting for $2.5m and EllenbrookBridge $2.9m.

Parks have exceeded ytd budget of $4.1m by $422k due to the followingprojects: Chequers Club Bore/Irrigation $1.1m, Midland Oval Master Plan$617k and Caversham Oval $689k. This is a timing difference as total spendis still within annual budget.

The One Council Implementation project has realised $1.5m of its $2.6mannual budget.

0

200

400

600

800

Current > 30Days

> 60Days

> 90Days

$000

's

Trade Debtors

September October

AAA 36%

AA+ to AA- 12%

A+ to A-

52%

Current debtors decreased by 41% as a result ofless invoices raised compared to the prior month.Unpaid invoices have moved from Current debtors to30 Days debtors, causing an increase of $86k.Similarly, the 90 Day debtors have increased by 21%as a result of unpaid invoices moving from the 60 Daysdebtors.

Rates Debtors excluding Emergency Services were$53.7m compared to $66.8m in September, a decreaseof $13.2m or 20%. The significant decrease was aresult of final notices, interim rates and secondinstalments being due in October.

2.1

AASB 101.8 requires a financial report to include a "Statement of Comprehensive Income". The definition of "IncomeStatement" at Financial Management Regulation 3 is "income statement (or equivalent) that meets therequirements of Australian Accounting Standards for income statements". By virtue of the changes to terminology inAASB101, we now refer to the "income statement" as the "statement of comprehensive income" as that is the"equivalent" in the context of the Australian Accounting Standards.

The Statements of Comprehensive Income summarise the operating revenue and expenditure for a particular periodof a financial year. The principle aim of these financial statements are to report on the performance of the City inmeeting the approved budgets in both revenue and expenditure terms. An important aspect of The Statements ofComprehensive Income is the exclusion of capital and infrastructure project expenditure. There are two versionsthat are prepared with each presenting information in two distinct forms.

The first Statement of Comprehensive Income is by Nature & Type as prescribed by the Financial ManagementRegulations Schedule 1 Part 2 that ensures compliance with statutory requirements. The report categorisesrevenues and expenses into easy to understand types based on the nature of the individual revenue or expense. Forexample employee costs are made up of not only salaries and wages but also casual labour, labour hire, staffrecruitment, staff training etc.

The second Statement of Comprehensive Income is by Program. Since the withdrawal of AAS 27, AASB 1052.11(b)now governs the disclosure requirements relating to income and expenditure by program (function / activity). Thereport aims to give the reader information on what activity within the community revenue is generated from andwhere money is spent. For example the General Purpose Funding program is where most revenue is generated fromrates, the main source of local government funds. In regards to expenditure the program titled Recreation & Cultureoften has the greatest outlay. This program includes costs associated with operating Libraries, Leisure Centres,Street Lighting, maintaining Parks & Reserves and City owned Buildings.

Both reports calculate variances based on the Current Revised Budget. The actual figures for the year to date arecompared to the year to date current revised budget to present a monetary variance as well as a the variance shownas a percentage of the budget.

The following report on significant variances refers to those variances in the Statement of Comprehensive Income byNature and Type.

2.0 Statements of Comprehensive Income2.0 Statements of Comprehensive Income

2.2

Original Budget

2017/18

Revised Budget

2017/18

YTD CURRENTREVISED BUDGET@ 31 OCTOBER

2017

YTD ACTUAL@ 31 OCTOBER

2017$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities122,963,766 122,963,766 Rates Revenue 122,369,566 119,324,400 (3,045,166)

1,212,300 1,212,300 Service Charges 1,212,300 1,220,700 8,40037,490,460 37,490,460 Fees & Charges 27,339,526 27,665,169 325,64210,069,900 10,096,400 Operating Grants, Subsidies & Contributions 4,014,807 3,098,901 (915,906) U 23%

5,364,050 5,364,050 Interest Earnings 2,211,476 2,198,551 (12,926)923,340 945,340 Other Revenue 318,230 392,601 74,371 F (23%)

178,023,816 178,072,316 Sub-Total Ordinary Revenue 157,465,906 153,900,321 (3,565,585)

Expenses from Ordinary Activities(76,251,490) (76,502,670) Employee Costs (25,309,244) (24,210,128) 1,099,115(36,884,430) (37,013,470) Materials & Contracts (13,008,057) (9,908,039) 3,100,018 F 24%

(6,985,990) (6,985,990) Utility Charges (1,927,870) (1,784,266) 143,604(34,877,410) (34,877,410) Depreciation on Non-Current Assets (11,625,804) (11,449,380) 176,423

(2,202,850) (2,202,850) Interest Expenses (522,141) (361,653) 160,488 F 31%(604,260) (604,260) Insurance Expenses (727,988) (655,138) 72,850 F 10%

(1,970,172) (1,970,262) Other Expenses (700,046) (357,297) 342,748 F 49%

(159,776,602) (160,156,912) Sub-Total Ordinary Expenses (53,821,149) (48,725,902) 5,095,247

18,247,214 17,915,404 Ordinary Activities 103,644,757 105,174,419 1,529,662

Add Non-Ordinary Activities8,954,380 9,194,470 Non-Operating Grants, Subsidies & Contributions 2,427,997 6,802,527 4,374,530 F (180%)

18,250,000 18,250,000 Non-Operating Gifted Assets from Developers: Other - - -7,689,610 7,689,610 Developer Contribution Plans: Cash 2,563,203 2,490,377 (72,826)4,878,730 4,878,730 Developer Contribution Plans: In Kind - - -

(1,606,700) (1,606,700) Land Ceded to the Crown - - -1,262,960 1,262,960 Profit / (Loss) on Disposal of Assets 420,987 263,788 (157,198) U 37%5,000,000 5,000,000 Unrealised Gain from Other Financial Assets: EMRC - - -

62,676,194 62,584,474 Net Result 109,056,945 114,731,112 5,674,170- - Other Comprehensive Income - - -

62,676,194 62,584,474 Total Comprehensive Income 109,056,945 114,731,112 5,674,170

Financial Ratios 2015 2016 2017 Current Month

OPERATING SURPLUS RATIO 22.00% 23.00% 26.00%

DEBT SERVICE COVER RATIO 13.73 8.93 9.93

OWN SOURCE REVENUE COVERAGE RATIO 1.10 1.15 1.16

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE CITY OF SWAN

FOR THE PERIOD 1 JULY 2017 to 31 OCTOBER 2017

The Own Source Revenue Coverage Ratio measures the local government's ability to cover operating expenses from own source revenue. The higher the ratio, the more self reliant the City will be. This allows greater flexibility as less external funds are required for operational purposes. A ratio above 0.90 is considered low risk and less than 0.60 high risk.

The Debt Service Cover Ratio measures the ability to service debt. Also known as 'debt coverage ratio', this is the ratio of cash available for debt servicing to interest, principal and lease payments from the operations of the City. A ratio below 2.00 should be monitored carefully. A ratio above 5.00 is considered low risk. The higher the ratio, the better the City's financial capacity to meet the debt servicing commitments.

69.74%

53.51

3.09

The Operating Surplus Ratio highlights the extent of the operating surplus (deficit) relative to the revenues of the Council. This is an indicator of the extent to which revenue raised cover operational expenses and is available for capital funding purposes. The higher the ratio the more financial capacity to deal with asset renewal before reliance on external sources of revenue. A ratio above 15% is considered low risk - an indication that own source income is available to fund capital expenditure initiatives over and above depreciation. A ratio below 0% is considered high risk. The year to date ratios will vary considerably from year end results.

2.3

Original Budget

2017/18

Revised Budget

2017/18

YTD CURRENTREVISED BUDGET@ 31 OCTOBER

2017


2017$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities133,778,476 133,778,476 General Purpose Funding 125,946,146 122,359,641 (3,586,504)

159,710 159,710 Governance 41,687 184,152 142,465 F (342%)2,330,330 2,330,330 Law Order & Public Safety 1,668,157 1,552,519 (115,638)

267,000 267,000 Health 89,000 259,580 170,580 F (192%)4,329,660 4,329,660 Education & Welfare 2,162,530 2,124,074 (38,456)

60,000 60,000 Housing 20,000 19,141 (859)23,444,130 23,444,130 Community Amenities 22,544,197 22,583,134 38,937

7,105,090 7,153,590 Recreation & Culture 2,383,750 2,285,439 (98,311)1,894,300 1,894,300 Transport 925,400 856,829 (68,571)1,660,000 1,660,000 Economic Services 686,667 747,519 60,8522,995,120 2,995,120 Other Property & Services 998,373 928,295 (70,079)

178,023,816 178,072,316 Sub-Total Revenue 157,465,906 153,900,321 (3,565,585)

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,624,696) (2,624,696) General Purpose Funding (838,230) (896,555) (58,325)(13,001,821) (13,230,501) Governance (4,801,516) (4,010,375) 791,141 F 16%

(6,242,648) (6,242,648) Law Order & Public Safety (2,078,422) (1,973,835) 104,587(1,847,676) (1,847,676) Health (615,891) (614,562) 1,329(9,761,478) (9,763,098) Education & Welfare (3,348,444) (2,903,264) 445,181 F 13%

(109,399) (109,399) Housing (36,466) (30,463) 6,003(26,227,492) (26,218,752) Community Amenities (8,703,086) (7,500,024) 1,203,062 F 14%(54,220,840) (54,365,100) Recreation & Culture (17,926,569) (17,571,690) 354,878(33,722,432) (33,690,632) Transport (11,632,339) (9,270,825) 2,361,514 F 20%

(6,357,420) (6,357,420) Economic Services (2,119,139) (1,841,018) 278,121 F 13%(3,457,850) (3,504,140) Other Property & Services (1,198,905) (1,751,637) (552,733) U (46%)

(157,573,752) (157,954,062) Sub-Total Non-Borrowing Expense (53,299,007) (48,364,249) 4,934,759

Borrowing Costs Expense(533,280) (533,280) Governance (145,368) (88,703) 56,665 F 39%(802,680) (802,680) Recreation & Culture (167,919) (113,605) 54,314 F 32%(434,420) (434,420) Transport (89,906) (70,460) 19,446 F (100%)(417,970) (417,970) Other Property & Services (118,948) (88,886) 30,062 F 25%

(2,202,850) (2,202,850) Sub-Total Borrowing Costs (522,141) (361,654) 160,487

18,247,214 17,915,404 Net Operating Result 103,644,758 105,174,420 1,529,661

Non-Operating Grants, Subsidies & Contributions12,568,340 12,568,340 Governance 2,563,203 2,490,377 (72,826)

677,630 677,630 Law Order & Public Safety 225,877 - (225,877) U (100%)267,300 267,300 Education & Welfare 89,100 5,907 (83,193) U (93%)

1,537,500 1,587,500 Recreation & Culture 145,833 2,948,000 2,802,167 F 1921%24,721,950 24,912,040 Transport 1,967,187 3,848,619 1,881,432 F 96%39,772,720 40,012,810 4,991,200 9,292,903 4,301,702

Land Ceded to the Crown(236,237) (236,237) Recreation & Culture - - -

(1,370,463) (1,370,463) Transport - - -(1,606,700) (1,606,700) - - -

Profit/(Loss) on Disposal of Assets1,047,700 1,047,700 Recreation & Culture 349,233 (4,526) (353,759) U (101%)

215,260 215,260 Transport 71,753 268,314 196,561 F 274%1,262,960 1,262,960 420,987 263,788 (157,198)

5,000,000 5,000,000 General Purpose Funding - - -

62,676,194 62,584,474 Net Result 109,056,945 114,731,112 5,674,170- - Other Comprehensive Income - - -

62,676,194 62,584,474 Total Comprehensive Income 109,056,945 114,731,112 5,674,170


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM CITY OF SWAN

3.1

Description

2. Statement of Change in Equity

Financial Ratios 2015 2016 2017 Current MonthCURRENT RATIO 1.67 1.34 1.74 5.56

QUICK RATIO 1.67 1.34 1.73 5.55

UNTIED CASH TO TOTAL CREDITORS 5.50 2.72 3.07 17.01

1. Statement of Financial Position

AASB 101 requires all Councils to prepare a Statement of Financial Position, which discloses the assets, liabilities and equity ofthe Council as at the reporting date. The ratepayer equity in the Council can be calculated by deducting total liabilities from totalassets.

The purpose of the Statement of Financial Position is to provide a "snap - shot" of the overall financial position of the Council asat a particular date. An entity shall present current and non-current assets, and current and non-current liabilities, as separateclassifications on the face of its balance sheet and on the basis of liquidity. Subject to special requirements for revaluation ofvarious classes of assets, accepted accounting practice includes well defined accounting principles. This convention dictates thatan asset represents the value of an investment acquired to provide future economic benefit to an entity. The future economicbenefits may be in the form of cash or cash equivalents or in the case of not-for-profit (including public sector) entities, theeconomic benefits are derived from meeting the entities objectives of providing goods and services.

Councils are required by AASB 101 to prepare a Statement of Changes in Equity and include it in the Financial Statements. TheStatement of Changes in Equity reconciles the opening and closing balances of each class of the local government's equity overthe reporting period. It provides a summary of causes of the changes in equity and identifies specifically the changes incomposition of the local government's equity.

A Quick Ratio measures the short - term debt paying ability and the liquid position of the City of the Swan and the ability to pay its immediate debts with restricted assets and inventories removed from the calculation. The ratio should be greater than 1.00 (100%).

This ratio assesses the City's ability to meet immediate commitments from readily available cash. Trade creditors include orders for goods and services that have been received but not paid and any amount owing for GST. The higher the ratio the better placed Council is to pay its Creditors. This ratio is always at its lowest point at the end of the financial year and the beginning of the new financial year as much of the cash reserves of the City has been expended by this time and collection of rates revenue is yet to accelerate. This ratio has improved over the last couple of years with an improvement in net funds available at the end of the year.

A Current Ratio shows short - term paying ability with restricted assets removed from the current assets. It relates to the immediate financial sustainability of Council. A ratio greater than 1.00 (100%) indicates Council has more current assets than current liabilities. If less than 1.00 (100%), current liabilities are greater than current assets and there may be a short term funding issue.

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @31 OCTOBER 2017

ACTUAL @30 JUNE 2017

Current AssetsCash and cash equivalents 198,055,146 137,263,976Trade and other receivables 62,056,850 12,020,193Assets held for sale 7,847,019 7,847,019Inventories 302,058 263,351Other Assets 955,072 1,361,018

Total: Current Assets 269,216,144 158,755,558

Non Current AssetsTrade and other receivables 2,916,817 2,557,676Other Financial Assets 123,809 123,809Property, plant and equipment 1,500,807,418 1,496,808,837Other Financial Assets 67,074,404 67,074,404

Total: Non Current Assets 1,570,922,449 1,566,564,726

Total Assets 1,840,138,593 1,725,320,284

Current LiabilitiesShort term borrowings 4,482,419 6,306,981Trade and other payables 18,518,419 19,709,420Income in advance 754,317 -Provisions 13,443,507 13,504,458

Total: Current Liabilities 37,198,662 39,520,859

Non Current LiabilitiesLong term borrowings 40,678,507 40,678,507Trade and other payables 4,642,331 2,763,739Provisions 2,084,389 1,553,590

Total: Non Current Liabilities 47,405,227 44,995,836

Total Liabilities 84,603,889 84,516,695

NET ASSETS 1,755,534,704 1,640,803,589

Equity AccountsAccumulated Surplus 1,071,707,024 962,366,880Asset Revaluation Reserves 579,235,039 579,235,039Cash Backed Reserves 104,592,641 99,201,670

TOTAL EQUITY 1,755,534,704 1,640,803,589

CITY OF SWANSTATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2017

3.3

RETAINEDSURPLUS

ASSET REVALUATION RESERVES

RESERVES CASH / INVESTMENT BACKED

TOTALEQUITY

Balance as at 30 JUNE 2015 801,837,255 448,062,744 83,920,394 1,333,820,394

Net Result 106,487,074 - - 106,487,074

Transfer from Retained Surplus to Revaluation Surplus (13,060,059) 13,060,059 - -

Total Other Comprehensive Income - 2,153,738 - 2,153,738

Transfer from/(to) Reserves (13,278,185) - 13,278,185 -


Net Result 82,383,885 - - 82,383,885

Total Other Comprehensive Income - 115,958,498 - 115,958,498



Net Result 114,731,112 - - 114,731,112

Total Other Comprehensive Income - - - -


Balance as at 31 OCTOBER 2017 1,071,707,024 579,235,039 104,592,641 1,755,534,704

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS31-Oct-17 30-Jun-17

Cash / Investment Backed Reserves

Aged Services Asset Replacement 342,728 282,837

City Asset Replacement 10,754,479 8,413,172

Ellenbrook Community Facilities 209,151 271,377

Aveley Community 1,678,286 1,679,857

General Insurance 500,000 500,000

Gravel Pit Rehabilitation 446,744 410,870

Hazelmere/Guildford Drainage 1,129,689 929,841

Midland District Drainage Development 3,843,041 3,898,174

Plant & Equipment Reserve 8,745,808 6,208,660

Waste Management 9,042,210 7,406,909

Employee Entitlements - LSL 8,429,031 7,713,071

Hazelmere Industrial Area Infrastructure - Stage 2 5,252,680 4,053,893

Ellenbrook Bridge 2,234,957 1,955,533

Strategic Development 163,461 3,365,822

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 17,299,048 16,411,604

- Caversham 6,475,590 7,266,845

- Dayton (West Swan East) 23,111,852 23,420,087

- West Swan West 919,892 -

Other Restricted Assets

- Drainage 69,584 69,584

- Footpath 242,258 242,258

- Malaga Parking 209,154 197,000

- Midland Parking 35,000 35,000

- Ellenbrook Parking 121,535 64,784

- Roadwork 2,687,104 2,530,518 - Unspent Specific Grants - 1,135,987

- Public Art 649,354 737,987

Sub total Cash / Investment Backed Reserves 104,592,641 99,201,672Add: other restricted cash / investment assets (i.e Bonds) 4,642,331 4,109,931Total of restricted cash / investment assets 109,234,972 103,311,605Add: Unrestricted cash / investment assets (i.e. MUNI funds) 88,820,173 33,952,372TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 198,055,146 137,263,976

Consisting of: Cash and Cash Equivalents 198,055,146 137,263,976

198,055,146 137,263,976


CITY OF SWANSTATEMENT OF CHANGES IN EQUITY

4.1

Comments

East Gidgegannup Fire Station has expended 94% or $290k against annual budget of $310k. The project has reached practical completion and defect works are scheduled for completion in November 2017.

Stoneville Road has realised 85% or $513k of its annual budget of $600k. Construction works for stage one of the project have now been completed despite some delays experienced due to wet weather. Works for stage two have commenced and are expected to be completed in November 2017.

Hazelmere Industrial Area Infrastructure Road reflected total spend of $2.5m compared to $5.2m annual budget. Road line marking has been finalised while footpath works are planned for November 2017. Street lighting installation by Western Power is scheduled to take place in the latter part of the financial year.

Ellenbrook Bridge has recorded total spend of $2.9m against $5.9m annual budget. The project entails construction of the bridge and the associated roads. A contract for works was awarded in October and clearing works are expected to commence in November 2017. Construction of the bridge is due to be completed in the current financial year while road construction works are anticipated to be finalised in 2018/19.

4.0 Capital

0

20

40

60

80

100

120

July Aug Sep Oct Nov Dec Jan Feb March April May June

Mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 17/18 Budget 17/18

Prior Year Actual Prior Year Budget

0

2

4

6

8

10

12

14

16

Buildings Drainage Footpaths Parks Roads P&E, Other

Mill

ions

$

YTD Capital Works expenditure Actual & CommittedBudget

Current Budget YTD Expense Current Budget

JobNumber

JobName

FullYearExpense Actual Commited Total % of

BudgetFullYearRevenue

YTDRevenue

% ofBudget

BCW04134 Administration Building 500,000 1,685 4,455 6,140 1

BCW05104 Altone Park Library 230,500

BCW05106 Community Facilities 200,000 20,322 58,995 79,317 40

BCW05110 Midland Town Hall Build Imp 192,828 155,167 347,995

BCW05114 Minor Capital Building Projec 125,000 25,266 26,813 52,079 42

BCW05120 Extension to Hamersley House 47,000

BCW05130 Midland Library 38,000

BCW05131 Midland Lotteries 141,620 108,107 35,533 143,640 101

BCW05137 Altone Park Leisure Centre 1,371,500 1,318,492 86,290 1,404,782 102

BCW06110 Ballajura Aquatic Centre 146,500 84,525 13,230 97,755 67

BCW06121 Toilet Building Renewal 26,000 1,306 1,306 5

BCW07103 West Swan Home Supp 30,000

BCW07106 Bellevue Hall 47,000 1,725 3,460 5,185 11

BCW07108 Swan Park Recreation Centre 746,600 151 8,991 9,142 1

BCW07115 Roof Safety Access Systems 42,000 559 559 1

BCW07116 Airconditioner Renewal Progra 84,800 10,433 4,995 15,428 18

BCW07117 Lock & Key Replacement Progra 354,000 5,141 218 5,359 2

BCW07122 South Ballajura Com Centre 75,000 1,993 1,993 3

BCW07124 Midland Sports Complex 70,000 2,260 2,260 3

BCW08109 Bullsbrook Waste Transfer Sta 200,000 13,826 1,018 14,843 7

BCW08114 Alice Daveron Centre 60,000

BCW08115 Ballajura Library 50,000

BCW08120 Midland Youth Services Hub 558,620 103,894 110,101 213,994 38 1,625,000

BCW09102 Bus Shelters 140,000 236 236 37,500

BCW09104 Bin Compounds 23,000 811 12,918 13,729 60

BCW09105 Energy Conservation Measures 142,000 1,956 1,956 1

BCW09106 Switchboards Renewal 2,000 834 834 42

BCW10101 Asbestos Management Program 95,000 (68) 29,760 29,692 31

BCW10102 Integrated Systems Program 1,662,000 10,785 62,670 73,456 4

BCW10106 Equipment Fire System Safety 16,000

BCW10110 Guildford Mechanics Institute 47,000

BCW11106 Ellenbrook Leisure Centre 649,000 33,500 101 33,601 5

BCW11107 Ellenbrook Resource Centre 50,000 28,221 28,221 56

BCW11109 Building Disposal 90,000 46,529 46,529 52

BCW11112 Malvern Springs Community Cen 115,000

BCW12102 Ethel Warren Bullsbrook CC 1,600,000 66,051 55,230 121,281 8 500,000

BCW12103 Woodlake Community Centre 23,840

BCW13101 Ballajura Place Office 1,611,830 26,349 165,070 191,419 12

BCW13102 DCP-Caversham Community Centr 12,891 12,891

BCW13107 Old Mechanical Workshop 109,000

BCW14101 Altone Place Office 1,809,000 23,959 48,835 72,794 4

BCW14103 DCP-Brabham Community Centre 14,855 14,855

BCW14104 Dayton Community Centre 327,020 (2,060) 10,690 8,630 3

BCW14109 Operations Centre 4,268,000 11,097 193,000 204,097 5

BCW14110 Midland/Guildford Cricket Clu 42,000

BCW15001 Hazelmere Hall 590,000 1,271 1,271 100,000

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 31 OCTOBER 2017

3/11/2017 11:28:23 AM


JobNumber

JobName



YTDRevenue

% ofBudget

BCW15002 Koongamia Pavilion 139,500

BCW15003 Lowery Park Pavilion 227,000 138 138

BCW15004 East Gidge Fire Station 310,000 223,679 66,805 290,484 94

BCW15005 District Park Active- Buildin 306,000 13,478 12,691 26,169 9

BCW16101 Stafford Court Training Room 10,000 14,959 4,552 19,510 195

BCW16104 Malaga Transfer Station 20,000

BCW16106 PA Midland Youth Hub 45,300 16,675 34,704 51,379 113

BCW16108 Waterhall Park 20,000 519 519 3

BCW16109 PA Bullsbrook Community Centr 33,030

BCW16110 Depot Chemical Shed 30,000 2,160 2,160 7

BCW17101 Altone Community Hub 50,000 50,000

BCW17102 Chequers Golf Club 30,000

BCW17103 West Gidgegannup Fire Station 50,000

BCW17104 Lilac Hill Public Toilets 274,000

BCW17105 Ron Jose Park Pavilion 120,000

BCW17106 SV & Eastern Visitor Centre 25,000

BCW17107 West Swan Hall 47,000

BCW17108 Guildford Potters 47,000

BCW17109 West Bullsbrook Hall 30,000 5,007 3,404 8,411 28

BCW17110 Recycling Facility Jack Willi 30,000

BCW Building Capital Works 20,399,660 2,385,723 1,270,317 3,656,040 18 87,500 2,225,000 2543

DRN04210 Swan St Guildford 90,000

DRN04213 Midland Drainage 100,000 47,714 10,093 57,808 58

DRN07209 Morrison Road/Poynton Ave 185,000 314,930 50,049 364,979 197

DRN08203 Hazelmere/Guildford Drainage 100,000 7,659 617 8,276 8

DRN08205 Morrison Road 426,400

DRN13209 Other Drainage Upgrades 430,000 83,535 83,535 19

DRN14202 Beverley Terrace Loader Way 90,000 80,788 28,269 109,056 121

DRN15012 Bushby Street 350,000 526,458 68,144 594,602 170

DRN15014 Bellevue Heritage Railway 100,000 23,360 23,360 23

DRN16201 Guildfd Foreshore Restoration 40,000

DRN16203 Byers Road 55,000 33,252 23,151 56,403 103

DRN16208 William Street 260,000 277,987 53,810 331,797 128

DRN16209 Burgess Street 100,000 74,342 6,724 81,066 81

DRN17201 Albert Street 561,000

DRN17202 Alice Street 363,000

DRN17203 Hackett Street 264,000 25,809 25,809 10

DRN17204 Kensington Street 133,100

DRN17205 Mount Street 177,100

DRN17206 Sophia Street 94,600

DRN17207 Great Eastern Highway 60,000

DRN17208 Robertson Street 90,000

DRN17209 Riverview Avenue 100,000 310 310

DRN17210 Sanderling Grove 180,000


3/11/2017 11:28:24 AM


JobNumber

JobName



YTDRevenue

% ofBudget

DRN17211 Spring Park Road 200,000 89,900 117,018 206,918 103

DRN Drainage 4,549,200 1,562,685 381,234 1,943,920 43 0 0 0

FTP06502 Footpaths New 170,000 25,093 25,093 15

FTP06505 Footpath Replacements 265,000 1,654 1,654 1

FTP09501 Swan Cycle Planning Project 496,850 134,837 165,715 300,552 60 200,000 40,000 20

FTP10101 Universal Access - Footpath 34,000 18,691 1,388 20,079 59 4,000 4,000 100

FTP16501 Cranleigh Street 162,320

FTP16502 DCP - Suffolk Street 2,540 21,199 23,740

FTP Footpaths 1,128,170 182,816 188,303 371,119 33 204,000 44,000 22

GRP04100 Gravel Pit 20,000 25,550 910 26,460 132 52,599

GRP Gravel Pit 20,000 25,550 910 26,460 132 0 52,599

PEQ08104 CCTV - Safer Suburbs 1,138,090 677,630

PEQ10104 Website Development - SVC 27,405 54,810 82,215

PEQ11102 Midland Parking Technology 1,965 1,965

PEQ13102 COS Website Maintenance 64,000 12,500 12,500 20

PEQ14103 User Generated Content System 30,000

PEQ14104 Herne Hill - Telecomunication 677,270 8,320 8,320 1

PEQ15000 Fire Fighting Assets 40,000 5,340 950 6,290 16

PEQ15003 One Council Implementation 2,608,820 802,313 702,687 1,504,999 58

PEQ16101 DCP Software 72,000 24,000 24,000 33

PEQ16102 Leisure System Replacement 396,000 5,133 82,289 87,422 22

PEQ16103 Midland Town Hall Sound Syste 300,000

PEQ16104 Radio Frequency ID Equipment 62,400 65,952 65,952 106

PEQ16105 Sea Containers 96,200 1,168 8,726 9,894 10

PEQ16108 People Counter 5,000 200 200 4

PEQ16111 Waste Management Systems 13,900 13,900

PEQ17101 Library Services - Futures La 56,490 18,829 18,829 33

PEQ Plant & Equipment 5,546,270 961,059 875,427 1,836,485 33 677,630 0 0

PRK04313 Percy Cullen Oval 50,000 775 775 2 50,000

PRK04324 Residential Street Trees 60,000 27,015 27,015 45

PRK04326 Minor Park Furniture 20,000 9,212 630 9,842 49

PRK04328 Rural Street Trees 20,000

PRK05304 Parks & Streetscapes Minor 246,500 24,770 121,560 146,329 59

PRK05307 Swan Regional Riverside Park 10,000

PRK05309 Tourism Signage 75,000 591 273 864 1 (432)

PRK05311 Emu Lake Restoration 374,000 138 31,012 31,150 8

PRK05317 Playgrounds - Ellenbrook 40,250

PRK05329 Ron Jose Oval 120,000 350,000

PRK06309 Baskerville Oval Lights 362,000

PRK06318 Playgrounds - Aveley 692,300

PRK07309 Kings Meadow 100,000 28,875 51,164 80,039 80


3/11/2017 11:28:24 AM


JobNumber

JobName



YTDRevenue

% ofBudget

PRK08302 Bellevue Landscape Upgrade 250,000 246,485 246,485 99

PRK08307 Bushland Fencing 326,000 38,270 38,270 12

PRK08308 Gazebo Replacement 206,500 23,556 23,556 11

PRK08318 Public Art 102,980 6,000 6,000 6

PRK09302 Chequers Club Bore/Irrigation 1,630,000 1,033,445 106,074 1,139,520 70

PRK09305 City Gateways Project 220,000 16,704 233,541 250,245 114

PRK10102 Playspace Replacemet Pgm 305,000 633 35,000 35,633 12 255,000

PRK11101 Regional Open Space - Whitema 160,400 1,264 4,490 5,754 4

PRK11102 Reticulation/Hydrozoning 372,000 (99) 113,113 113,014 30

PRK11108 Swan View Oval 50,000

PRK13309 Sports Oval Lighting 360,000 29,998 9,557 39,554 11

PRK13311 John Stone Park 10,000 4,860 4,860 49

PRK14304 Bennett Springs Park 300,000 47,848 103,216 151,064 50

PRK14307 District Park Active 500,000 134,557 66,347 200,904 40

PRK14310 Midland Oval Master Plan 1,000,000 212,588 399,974 612,562 61

PRK14311 Parks Electrical Infrastructu 267,000 125,116 35,447 160,563 60

PRK14315 Annies Landing Playgrounds 46,000

PRK15000 Electronic Place Signage

PRK15006 Dayton Local Park - Passive 350,000 7,957 2,497 10,454 3

PRK15007 Caversham Oval - DCP 200,000 689,233 200 689,433 345

PRK16302 Dayton Neighbourhood Park 1,500,000 8,572 8,572 1

PRK16303 Aveley Outdoor Fitness Equip. 172,500

PRK16308 Sherlock Park 235,000 26,739 12,155 38,894 17

PRK16309 PA Ellenbrook DOS South 115,290 49,586 54,510 104,096 90

PRK16310 PA Waterhall Park Playspace 70,000 21,527 16,000 37,527 54

PRK17301 City of Swan Signage Impmts 50,000

PRK17302 Electronic Bushfire Signs Gid 35,000

PRK17303 Foreshore Restrn-Woodbridge P 328,000 16,808 16,200 33,008 10 200,000

PRK17304 Foreshore Restrn-Loder Way 75,000

PRK17305 Foreshore Restrn-Lilac Hill 60,000 62,868 37,113 99,981 167

PRK17306 Foreshore Restrn-Wangalla Brk 90,000 11,985 12,069 24,053 27

PRK17307 Foreshore Restrn-Blackadder C 50,000

PRK17308 Foreshore Restrn-East St Res 60,000

PRK17309 Foreshore Restrn-Middle Swan 192,000 26,201 36,960 63,161 33

PRK17310 Foreshore Restrn-St Equestria 70,000 32,637 32,637 47

PRK17311 Foreshore Restrn-Eveline Rd 60,000

PRK17312 Central Park Toilets 120,000

PRK17313 Lassen Park 96,000

PRK17314 Gidgegannup Basketball Crt 15,000 9,250 9,250 62

PRK Parks 12,159,720 2,592,751 1,882,314 4,475,064 37 250,000 664,568 266

RDN04403 The Promenade 610,000

RDN04426 Chittering Road 195,000 1,659 48,699 50,359 26 163,330 25,333 16

RDN04433 Lord Street 1,000,000

RDN04446 West Swan Rd/ Millhouse Rd 1,518,600 25,869 1,500 27,369 2 826,400 826,400 100

RDN04447 West Swan Road 742,000 31,115 4,328 35,443 5 503,000 200,000 40

RDN04480 Robert Street 540,000 20,430 40,917 61,347 11


3/11/2017 11:28:24 AM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN05401 Midland Parking 50,000

RDN05402 Street Lighting Upgrades 412,600 233,287

RDN05405 Traffic Safety Minor Projects 50,000 19,140 2,937 22,078 44

RDN05457 O'Brien Road 70,000 3,254 3,254 5

RDN06404 Hepburn Avenue 40,000 29,815 29,815 75

RDN06410 Charles St/Frederic St 750,200 78,310 29,039 107,349 14 324,800 129,918 40

RDN06420 Bridge Works 2,543 2,543 78,333

RDN06421 Investigation,Design Projects 150,000 105,522 105,522 70

RDN06450 Lloyd Street 181,470 18,893 18,893 10

RDN07402 Local Roads Program -Testing 75,000 17,542 12,164 29,706 40

RDN07403 Contributions For Works To 200,000 15,083 15,083 8

RDN07429 Stoneville Road 600,000 310,656 202,182 512,838 85 600,000

RDN07435 Talbot Road 100,000

RDN07441 Blackadder Road 155,000

RDN07451 Warbrook Road 91,149

RDN07452 Lord Street 7,734,190 55,725 159,294 215,020 3

RDN07454 Malaga Industrial Carparking 3,596 3,596

RDN08441 Campersic Road 375,000 314,037 29,391 343,428 92 250,000 100,000 40

RDN09403 Bellefin Drive 120,000 14,472 110,017 124,489 104

RDN09423 Altone Road 500,000 1,035 203,392 204,427 41

RDN09431 Oakover Road 47,000 9,333 24,787 34,120 73 31,335 12,533 40

RDN09441 Beach Road 100,000 2,377 11,188 13,565 14 100,000 40,000 40

RDN11201 Hazelmere Ind Area Infrast RD 5,212,680 2,105,758 409,657 2,515,415 48

RDN11203 Suffolk Street 570,550

RDN11401 Benara Road 75,000 7,447 29,690 37,137 50

RDN11426 Meadow Street 400,000 104,223 189,891 294,114 74

RDN12403 Henley Brook Avenue 122,500 86,840 86,840 71

RDN13204 Gnangara Road 400,000 33,910 70,799 104,709 26 293,050 117,050 40

RDN13206 Joseph Road 283 283

RDN13210 Neaves Road (1) (1)

RDN14201 Ellenbrook Bridge 5,908,800 7,716 2,847,944 2,855,660 48

RDN15007 Market Street

RDN15017 Victoria Road 139 139

RDN16201 Helena River Footbridge 250,000 97,676 97,676 39 180,000

RDN16209 Millhouse Rd/Chateau Place RA 81,470 74,321 4,300 78,621 97

RDN16211 Moore Road 2,409 2,409

RDN16215 Drumpellier Drive 2,070,000 1,380,000 533,333 39

RDN16216 Benara Road, Intersection 970,690 6,978 101,245 108,223 11

RDN16219 Halden Road 74,440 54,066 8,550 62,616 84 74,440 576,101 774

RDN16220 Maralla Road 46,520 30,382 30,382 65 46,520 321,545 691

RDN16221 Cunningham Road 65,130 42,536 42,536 65 65,130 442,124 679

RDN17201 Barkers Bridge 1,050,000 1,248 1,248

RDN17202 West Swan Road Bridge 950,000 69 69 845,000

RDN17203 Susannah Brook Bridge 250,000 23,000 23,000 9

RDN17204 Woodbridge Creek Footbridge 25,000 11,295 11,295 45 80,000

RDN17205 Myles Road 501,130 26,152 26,152 5 197,420 78,968 40

RDN17206 Brookmount Drive 400,000 17,825 49,651 67,476 17


3/11/2017 11:28:24 AM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN17207 Burgess Road 100,000 29 29

RDN17208 Cruse Road 270,000 280,802 106,390 387,191 143

RDN17209 Dudley Street 90,000 1,364 1,364 2

RDN17210 Flecker Promenade 415,000 600 600

RDN17211 Haddrill Road 1,200,000 45,157 1,457 46,615 4 1,197,615

RDN17212 Oxleigh Drive 190,000

RDN17213 Purton Place 209 209

RDN17214 Reserve Road 89,000 4,946 4,946 6

RDN17215 Tondoon Bend 170,000 300 300

RDN17216 Wilkins Street 100,000 7,571 18,110 25,681 26

RDN17218 Charlton Way/Papago Loop 20,000

RDN17219 The Broadway 125,000 91,100 91,100 73

RDN17220 Stock West Road 150,000 25,435 25,435 17

RDN17223 Marshall Road 809,300

RDN17224 Brigadoon Tennis Crts Car Par 30,000

RDN17225 Guildford Parking Infrastruct 25,000

RDN17226 Swan Park Leisure Ctr Car Par 330,000

RDN17227 Bennett Springs Oval Car Park 200,000 482 480 962

RDN17228 Car Park - Cnr Atley/Beringar 60,000

RDN17229 Narloo Street Car Park 120,000

RDN17230 Rowe Street Car Park 60,000

RDN17231 Parking Technology 75,000

RDN17232 Parklet Malaga 25,000

RDN17233 Infrastructure The Avenue 2,000,000

RDN17234 Truganina Road 50,000 1,190 52,628 53,818 108

RDN17235 Wilson Road 66,000 1,334 1,334 2

RDN Roads 42,509,270 4,096,361 4,949,468 9,045,828 21 7,158,040 3,806,074 53

CAPITAL JOBS TOTAL 86,312,290 11,806,944 9,547,972 21,354,916 25 8,377,170 6,792,241 81

Current Budget

YTD Expense Current Budget

FullYearExpense

Actual Commited Total % ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 10,427,750 2,261,950 2,261,950 22

1609 Purchase of Assets Comm Bus P 944,700 944,771 944,771 100

1613 Purchase of Asset Office F & 564,430 87,121 40,543 127,664 23

1618 Purchase of Assets P & E 6,717,470 501,173 2,199,540 2,700,714 40

1623 Purchase of Assets Computer 917,590 109,972 256,531 366,502 40

1628 Purchase of Assets Vehicle 1,935,530 263,175 623,901 887,076 46

1634 Purchase of Asset Other Rd In 81,362 81,362


3/11/2017 11:28:24 AM

1648 Purchase of Assets Other Infr 80,233 80,233

CAPITAL ASSETS TOTAL 21,507,470 4,329,757 3,120,515 7,450,272 35 0 0 0

GRAND TOTAL 107,819,760 16,136,701 12,668,487 28,805,188 27 8,377,170 6,792,241 81


3/11/2017 11:28:24 AM

5.1

4.0 DInvestments

ADI Lending Status Value Invested $Fossil Fuel lending ADI's

21,655,146

49,100,000

70,755,146

Non Fossil Fuel lending ADI's

34,300,000

26,100,000

34,000,000

9,000,00023,900,000

127,300,000

Total Cash and cash equivalents 198,055,146

0

40

80

120

160

200

240


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2015 2016 2017 20180

40

80

120

160

July Aug Sep Oct Nov Dec Jan Feb Mar April May June

Mill

ions

$

Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash

5.0 Cash and Investments

13%

17%

11%

17%

25%

5% 12%

Investment Portfolio Exposure

Bendigo and Adelaide Bank - BENBank of Queensland - BoQCommonwealth Bank of Australia - CBA-BWAMembers Equity Bank - MEBNational Australia Bank - NABRural Bank - RURSuncorp Bank - SUN

(A-2, BBB) MEB

(A-2, BBB+) BoQ

(A-1+, AA-) NAB

(A-2, BBB+) BEN

(A-2, BBB+) RUR

(A-1, A+) SUN

(A-1+, AA-) CBA-BWA

0% 10% 20% 30% 40% 50%

Individual Institution Exposures vs. Policy Limits

Limit Funds

0%

20%

40%

60%

80%

100%

0

50

100

150

200

Historical Portfolio Exposure to Non Fossil Fuel Lending ADIs

Sum(Total) Sum(Non Fossil Fuel Lending ADI (%))

Comm Bank of Australia

National Australia Bank

Bank of Queensland

Bendigo and Adelaide Bank

Members of Equity Bank

Rural Bank

Suncorp Bank

Mill

ions

$

City of Swan Economic and Investment Portfolio Commentary

October 2017 Global issues: Solid economic growth across US, Europe and Asia continues to push global share markets higher with

only a handful of countries not recording at least 10% gains since the start of 2017. The positive sentiment remains fuelled by expectations of continuing low official interest rates well into

2018/19 across Europe and Asia and only gradual increases in the US. In the US, business-friendly tax reform is inching closer to a vote in Congress before year end. While the

final tax cuts may not be as large as many Republicans wish, the prospects of at least a favourable compromise has helped US financial markets continue their upward trend.

Domestic issues: In Australia, weaker than expected September Qtr inflation data surprised the market. Despite a sharp

jump in energy prices (+9%), the overall annual rate of inflation slipped to 1.80%, well below the RBA’s 2-3% target range

The RBA Board noted the above average growth in Australia’s employment data over the year and forward indicators are showing good prospects for the remainder of 2017. Despite the sound jobs data, spare capacity is keeping a lid on wage inflation which was also up less than 2% over the year.

Interest rates The benign inflation data triggered a drop in interest rates at the end of the month. The market is now

expecting the RBA to keep the official cash rate unchanged at 1.50% until the first quarter of 2019: Term deposit rates dropped in late October in line with the market’s reaction to the Sep Qtr inflation data.

The best indicative 3 month TDs from Australian majors closed the month in the 2.40-2.45%, down 5-10 basis points from the prior month. Likewise, the highest 12 month rate from a four major was in the 2.50% area, down from 2.60% in late September. Short term rates in the 2.55% to 2.60% area are now largely only available in the 6-12 month area from lower rated banks.

Investment Portfolio Commentary The City’s investment portfolio posted a return of 2.40%pa for the month of October versus the bank bill index benchmark return of 1.74%pa. For the financial year to date, the investment portfolio returned 2.42%pa, exceeding the bank bill index benchmark’s 1.72%pa by 0.70%pa. 64% of the portfolio was invested in non-fossil fuel lending ADIs. Investments with realised losses include:

Disclaimer: The statements and opinions contained in this report are based on currently prevailing conditions in financial markets and are so contained in good faith and in the belief that such statements and opinion are not false or misleading. In preparing this report, Prudential Investment Services Corp has relied upon information which it believes to be reliable and accurate. Prudential Investment Services Corp believes that this report and the opinions expressed in this report are accurate, but no warranty of accuracy or reliability is given. Prudential Investment Services Corp does not warrant that its investigation has revealed all of the matters which a more extensive examination might disclose. This report may not be reproduced, transmitted, or made available either in part or in whole to any third party without the prior written consent of Prudential Investment Services Corp. AFS Licence No. 468145.

6.1

5.0 Debtors

i) Rate Debtors ii) Sundry Debtors

i) Rate Debtors

Notes

TABLE 6.1 Rates Debtor Breakdown by Type

Type of DebtorTotal Levied $('000)Current & Arrears

Collected YTD $('000)Outstanding $('000)Current & Arrears

Total Outstanding %

General Rates 126,589 75,947 50,642 40%Sanitation Charges 23,279 20,599 2,680 12%Drainage Charges 2,636 2,483 153 6%Security Charges 1,281 1,107 174 14%Other 234 212 22 9%

154,019$ 100,348$ 53,671$ 35%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

As at 31 October 2017

Each year Rates are levied in July. When this occurs the City recognises the Rates owed as an asset on the balance sheet. Ratenotices are printed and distributed to the public. As these are paid the Rates Debtor position reduces over the course of the year.Graph 6.2 below shows the progress in collecting these funds over the financial year including a comparison to prior yearcollection.

The City's Debtors can be divided into two types:

0

25

50

75

100

125

150


$ M

illio

ns

2016

2017

2018

A high number of residential rates are paid in August as ratepayers take advantage of the early bird payment prize draw.

Current PositionRate Debtors in Arrears

outstanding $6.4m

Current Debtors outstanding$47.3m

Total Debtors $53.7m

6.0 Debtors

The second, third & fourth rate instalments are due in Oct, Jan &

Mar respectively.

6.2

ii) Sundry Debtors

Notes

Table 6.3 shows a summary of the City's top 10 debtors 90 Days plus by dollar value divided by periods. Table 6.4 shows debt recovery comments for the top 10 debtors over 90 days. Graph 6.5 shows sundry debtors outstanding as a percentage based on payment period.

TABLE 6.3 Total Debtors including Top Ten 90 Days plus as at 31 October 2017

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - - - 127,700 127,700 17.75% 12.22%2 - - - 70,000 70,000 9.73% 6.70%3 - - - 61,282 61,282 8.52% 5.86%4 - - - 35,000 35,000 4.87% 3.35%5 - - - 24,447 24,447 3.40% 2.34%6 - - - 20,000 20,000 2.78% 1.91%7 - - - 16,423 16,423 2.28% 1.57%8 - - - 16,060 16,060 2.23% 1.54%9 - - - 15,712 15,712 2.18% 1.50%

10 - - - 15,312 15,312 2.13% 1.46%Other Debtors 209,746 105,500 10,862 317,373 643,481 44.12% 61.55%

Total 209,746 105,500 10,862 719,309 1,045,417 100.00% 100.00%

TABLE 6.4 Progress on Debt Recovery. Comments for top 10 over 90 days from table above

Top Ten Debtors123456789

10

GRAPH 6.5 Outstanding Debtors as a percentage

Progress for the recovery of Funds Comment

The City has lodged a Caveat on the land title. Monies to be recovered upon sale of property.

Referred to Fines Enforcement Registry for enforcement.

Sundry debtors include all monies owed to the City other than those relating to Rates. This includes but is not limited to invoicesraised for grants, leasing of City's premises, and recovery of costs for services provided to developers. The City issues invoiceswith 7 day payment terms.

Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.


Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.



As % of 90 Days Plus Debtors

As % of Total DebtorsTop Ten > 90 Day

Debtors


Current 20%

30 Days 10%

60 Days 1%

90 Days plus 69%

7.1

Income from Operating Activities

General Purpose Funding Grants and Other Contributions

15% Unfavourable Variance of $541,338

Governance 342% Favourable Variance of $142,465

Health 192% Favourable Variance of $170,580

Expenditure from Operating Activities

Governance 13% Favourable Variance of $619,127

Education & Welfare 13% Favourable Variance of $443,561

Community Amenities 14% Favourable Variance of $1,211,802

A Local Government is to prepare each month a statement of financial activity as prescribed by Regulation (34) of the Local Government (Financial Management) Regulations 1996. The statement of financial activity must report on the revenue and expenditure, as set out in the annual budget under FM Regulation 22(1)(d), taking into account any expenditure incurred for an additional purpose under section 6.8(1)(b) or (c). It includes original budget estimates to the end of the month to which the statement relates and actual amounts of expenditure and revenue to the end of the month. The statement must include material variances between the comparable amounts in ytd budget and ytd actual and an explanation of each. The net current assets at the end of each month have to be shown within the statement of financial activity.The report calculates variances based on the Original Budget. The actual figures for the year to date are compared to the year to date original budget to present a monetary variance as well as the variance shown as a percentage of the budget.

The composition of net current assets is also required to be presented as support to the statement and this is presented showing funds at the end of the current month, those at the previous 30 June and also those at the end of the corresponding month in the previous year. A graph is also included that identifies the monthly movement in funds for the current year and the previous two years.

Report on Significant Variances of 10% of Original Budget and greater than $10,000 in value

An advance part payment of $2.7m for the 2017/18 Financial Assistance Grant was made in the prior financial year. As such, the quarterly payments for the current year have been proportionally reduced, resulting in an unfavourable variance. The budget will be adjusted during the mid-year budget review.

Unbudgeted insurance rebates from the LGIS relating to prior financial years are the primary cause of the variance within Governance.

Computing License fees have exceeded ytd budget by $476k as most licenses are renewed at the beginning of the financial year. This was offset by favourable variances for: Consultants $165k, Projects Studies & Surveys $239k, Employee Costs $167k, Insurance $65k, plus other several smaller variances. Actual spend is expected to align to budget over time.

Revenue within Health reflected a positive variance of $171k mainly due to Annual Food Safety fees being due for renewal at the beginning of the financial year. This account will be assessed during the mid-year budget review and a budget adjustment will be effected if required.

Operating projects accounted for $269k of the positive result with the Youth Initiatives Hyper project accounting for $52k. Various projects also displayed smaller variances. Additionally, expenditure for the Swan Valley Sporting Club was below budget by $78k and $62k for the Swan Athletic Sporting Club. As the year progresses, it is anticipated that these timing differences will reduce.

Due to the timing of invoices, Waste Services Contract Costs were underspent by $792k, accounting for 65% of the variance within Community Amenities.

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Transport 21% Favourable Variance of $2,412,760

Economic Services 13% Favourable Variance of $278,121

Other Property and Services 45% Unfavourable Variance of $568,961

Non Cash Items

Provisions and Other Accruals 132% Favourable Variance of $709,395

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 210% Favourable Variance of $4,588,150

Purchase of Plant and Equipment 51% Favourable Variance of $7,963,637

Purchase or Construction of Infrastructure 57% Favourable Variance of $10,969,533

Other Non Operating Items

Loan Principal Repayments 20% Favourable Variance of $450,495

In Transport, fleet running costs were underspent by $548k. During the mid-year budget review, the variance will be analysed and a budget adjustment to reserves will be processed. Significant variances were also noted for: Electricity Costs $297k, Employee Costs $258k, Contracts $152k and Depreciation $528k.

Levies due to be paid to the Building Commission and the Construction Training Fund of $167k accounted for 60% of the variance within Economic Services. Additionally, Projects Studies & Surveys were below budget by $140k. The following projects with significant annual budgets have recorded nil or minimal expenditure: Midland Parking $50k, Midland Implementation Plan 2010-2017 $60k and Transport Strategy $110k.

Recovery of project management costs showed an unfavourable variance of $1.2m as a direct result of low capital works expenditure. This is typical in the early part of the financial year as most works are in their preliminary stages. In Contrast, Employee Costs were below budget by $104k, Projects Studies & Surveys by $175k, Depreciation by $213k and Consultants by $74k, partly offsetting the unfavourable variance.

The variance is due to timing. As the year progress results are anticipated to align to budget.

Capital Grants, Subsidies & Contributions have exceeded original ytd budget by $4.6m. The following grants were received at the beginning of the current financial year instead of the prior year where they were budgeted: Youth Services Hub $1.6m, Ethel Warren Bullsbrook Community Centre $500k, Halden Road $576k, Maralla Road $322k and Cunningham Road $442k. In addition, unbudgeted grants were received for Ron Jose Oval $350k and Playspace Replacement Program $255k. Budget adjustments will be processed during the mid-year budget review.

Building construction works were below budget by $4.1m, particularly in the following projects which showed significant variances: Integrated Systems Program $543k, Ethel Warren Bullsbrook Community Centre $467k, Ballajura Place Office $511k and the Operations Centre $1.4m. Computing Purchases were also under budget by $1.8m and Plant & Equipment Purchases by $1.1m.

A large portion of the variance is attributed to Roads construction works which showed underspending of $10m. The following projects with substantial annual budgets have recorded nil or minimal actual spend: Lord Street $7.7m, Drumpellier Drive $2m, Barkers Bridge $2m and Ellenbrook Bridge $5.9m. This a timing difference as commitments of $5m have been recorded against capital projects for Roads, with Ellenbrook Bridge showing $2.9m.

A majority of the City's new loans are drawn in the second half of the financial year. As repayments are made throughout the year the variance will reduce.

7.3

Other Funding Sources

Transfer from Reserves 35% Unfavourable Variance of $5,578,924

Transfer (to) from Trust Funds 68% Unfavourable Variance of $56,863

Proceeds from Sale of Assets 84% Unfavourable Variance of $3,892,677

Self Supporting Loans Repayments 65% Unfavourable Variance of $17,831

Proceeds from New Loans 100% Unfavourable Variance of $4,215,480

Movement in Deferred Rates (Non-Current) 513% Unfavourable Variance of $300,570

Opening Net Current Assets July 1 B/Fwd 120% Favourable Variance of $12,720,803

A large part of the City's capital works expenditure is generally incurred during the second half of the financial year. This unfavourable timing variance will reduce toward the end of the financial year.

This unfavourable variance is a timing difference. As expenditure is realised and transfers actioned the variance will reduce.

The majority of this favourable variance relates to carry forwards for capital works and the advance receipt of a portion of the Financial Assistance Grant for 2017/18. The balance relates to operating revenue being greater than budget and operating expenditure being lower than budget.

As budgeted asset disposals occur during the course of the year this unfavourable timing variance is expected to reduce and align with budget.

Self Supporting Loan repayments are received quarterly and bi-annually. This timing difference against budget will align as the year unfolds.

Budgeted City loans are aligned with capital works projects. Once these are progressed new loans will be drawn down as required, reducing this unfavourable timing difference.

As payments of Deferred Rates are received this unfavourable timing variance will reduce.

7.4

Original Budget 2017/18

Revised Budget 2017/18

YTD ORIGINALBUDGET

@ 31 OCTOBER 2017


2017

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

122,963,766 122,963,766 Rates 122,369,566 119,324,400 (3,045,166)10,814,710 10,814,710 Grants and Other Contributions 3,576,580 3,035,242 (541,338) U (15%)

133,778,476 133,778,476 Total General Purpose Funding 125,946,146 122,359,641 (3,586,504)159,710 159,710 Governance 41,687 184,152 142,465 F 342%

2,330,330 2,330,330 Law, Order and Public Safety 1,668,157 1,552,519 (115,638)267,000 267,000 Health 89,000 259,580 170,580 F 192%

4,329,660 4,329,660 Education and Welfare 2,162,530 2,124,074 (38,456)60,000 60,000 Housing 20,000 19,141 (859)

23,444,130 23,444,130 Community Amenities 22,544,197 22,583,134 38,9377,105,090 7,153,590 Recreation and Culture 2,335,250 2,285,439 (49,811)1,894,300 1,894,300 Transport 925,400 856,829 (68,571)1,660,000 1,660,000 Economic Services 686,667 747,519 60,8522,995,120 2,995,120 Other Property and Services 998,373 928,295 (70,079)

178,023,816 178,072,316 Subtotal Income 157,417,406 153,900,321 (3,517,085)

Expenditure(2,624,696) (2,624,696) General Purpose Funding (838,230) (896,555) (58,325)

(13,535,101) (13,763,781) Governance (4,718,205) (4,099,078) 619,127 F (13%)(6,242,648) (6,242,648) Law, Order and Public Safety (2,078,422) (1,973,835) 104,587(1,847,676) (1,847,676) Health (615,891) (614,562) 1,329(9,761,478) (9,763,098) Education and Welfare (3,346,824) (2,903,264) 443,561 F (13%)

(109,399) (109,399) Housing (36,466) (30,463) 6,003(26,227,492) (26,218,752) Community Amenities (8,711,826) (7,500,024) 1,211,802 F (14%)(55,023,520) (55,167,780) Recreation and Culture (17,950,228) (17,685,295) 264,933(34,156,852) (34,125,052) Transport (11,754,045) (9,341,285) 2,412,760 F (21%)

(6,371,920) (6,371,920) Economic Services (2,119,139) (1,841,018) 278,121 F (13%)(3,875,820) (3,922,110) Other Property and Services (1,271,563) (1,840,524) (568,961) U 45%

(159,776,601) (160,156,911) Subtotal Expenditure (53,440,839) (48,725,902) 4,714,937

18,247,215 17,915,405 Net Operating Profit / (Loss) 103,976,567 105,174,419 1,197,852

ADD NON CASH ITEMS34,877,410 34,877,410 Depreciation 11,625,804 11,449,380 (176,423)

1,612,095 1,612,095 Provisions and Other Accruals 537,365 1,246,760 709,395 F 132%36,489,505 36,489,505 Subtotal Non Cash Items 12,163,169 12,696,140 532,972

54,736,720 54,404,910 Net Operating Surplus / (Deficit) 116,139,735 117,870,559 1,730,824

LESS CAPITAL INCOME & EXPENDITURE8,954,380 9,194,470 Capital Grants, Subsidies & Contributions 2,187,907 6,776,057 4,588,150 F 210%7,689,610 7,689,610 Developers Contributions: Cash contribution 2,563,203 2,490,377 (72,826)4,878,730 4,878,730 Developers Contributions: In Kind Contribution - - -

18,250,000 18,250,000 In Kind Developer Contributions: Other - - -(46,433,910) (48,453,400) Purchase of Plant and Equipment (15,477,970) (7,514,333) 7,963,637 F (51%)(21,522,030) (21,522,030) Assets Contributed by Developers - - -(58,131,290) (59,366,360) Purchase or Construction of Infrastructure (19,377,097) (8,407,563) 10,969,533 F (57%)

(1,606,700) (1,606,700) Land Ceded to the Crown - - -(87,921,210) (90,935,680) Subtotal Capital Income and Expenditure (30,103,957) (6,655,463) 23,448,494

LESS OTHER NON OPERATING ITEMS(6,825,173) (6,825,173) Loan Principal Repayments (2,275,058) (1,824,562) 450,495 F (20%)

(44,822,930) (44,822,930) Transfer to Reserves (14,940,977) (15,673,860) (732,883)(51,648,103) (51,648,103) Subtotal Other Non Operating Items (17,216,034) (17,498,422) (282,388)

OTHER FUNDING SOURCES47,585,440 50,931,720 Transfer from Reserves 15,861,813 10,282,889 (5,578,924) U (35%)

250,000 250,000 Transfer (to) from Trust Funds 83,333 26,470 (56,863) U (68%)13,891,200 13,891,200 Proceeds from Sale of Assets 4,630,400 737,723 (3,892,677) U (84%)

82,931 82,931 Self Supporting Loans Repayments 27,644 9,813 (17,831) U (65%)12,646,440 12,646,440 Proceeds from New Loans 4,215,480 - (4,215,480) U (100%)

(175,714) (175,714) Movement in Deferred Rates (Non current) (58,571) (359,141) (300,570) U 513%10,638,590 10,638,590 Opening Net Current Assets July 1 B/Fwd 10,638,590 23,359,393 12,720,803 F 120%84,918,887 88,265,167 Subtotal Other Funding Sources 35,398,689 34,057,147 (1,341,542)

86,293 86,293 CLOSING NET CURRENT ASSETS YTD 104,218,432 127,773,822 23,555,390

CITY OF SWAN STATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @OCTOBER 2017

ACTUAL @JUNE 2017

ACTUAL @OCTOBER 2016

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 88,820,173 33,952,372 72,862,678 Restricted Cash, Cash Equivalents & Investments 109,234,973 103,311,605 104,497,189 Assets held for sale 7,847,019 7,847,019 - Rates Debtors Current 59,710,140 9,334,749 63,157,873 Trade and Other Receivables 2,346,710 2,685,444 2,338,128 Prepayments 955,072 1,361,018 1,057,532 Inventory 302,058 263,351 205,744 Total Current Assets 269,216,144 158,755,558 244,119,144

Less Current LiabilitiesIncome in Advance (754,317) - (698,790) Accounts Payable (18,518,419) (19,709,420) (19,739,574) Provisions - Employee Entitlements (13,443,507) (13,504,458) (12,662,128) Loan Repayments (4,482,419) (6,306,981) (3,920,742) Total Current Liabilities (37,198,662) (39,520,859) (37,021,233)

Net Current Assets 232,017,481 119,234,699 207,097,911

Add Back Restricted LiabilitiesLSL Reserve 8,429,031 7,713,071 6,516,513 Loan Repayments 4,482,419 6,306,981 3,920,742 Self Supporting Loan Contributions (73,119) (82,931) (78,268)

Adjusted Net Assets 244,855,813 133,171,820 217,456,899

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (104,592,641) (99,201,670) (101,350,140) Bond monies (4,642,331) (2,763,739) (3,147,048) Assets held for sale (7,847,019) (7,847,019) -

Closing Funds 127,773,822 23,359,393 112,959,712

* Changed to reflect Local Government of Western Australia Guideline - Number 8 - June 2013.

CITY OF SWANNET CURRENT FUNDING POSITION

AS AT 31 OCTOBER 2017

10

30

50

70

90

110

130

150

170

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Mill

ion

$

Liquidity Over Three Years

2015/162016/172017/18

8.1

1. STATEMENT OF CASH FLOW

2. RATE SETTING STATEMENT

Cash flow information provides users of financial reports with a basis to assess the ability of an entity to generatecash and cash equivalents and the needs of the entity to utilize those cash flows. The cash flow statement shallreport flows during the period classified by operating, investing and financing activities. The key objective of a cashflow forecast is to predict the period in which cash inflows and outflows will occur.

It is essential that local governments have meaningful and accurate financial information on which to base decisions.The starting point for sound financial management is the preparation of the Rate Setting Statement. This statementis a crucial component of the budget process and shows how much rates are required to pay for the localgovernment's operations. The Rate Setting Statement is a statutory requirement and is unique to local governmentin that it contains values of opening funds and closing funds. Opening funds refer to 'net current assets less restrictedfunds and committed cash and amounts already reflected in the current year budget'. The opening fund forms partof the calculation of the amount of the deficiency to be raised from rates as referred to in s 6.2(2)(C) of the LocalGovernment Act.

8.0 Other Statutory Reports8.0 Other Statutory Reports

8.2

ORIGINALBUDGET2017/18

REVISEDBUDGET2017/18 CASH FLOWS FROM OPERATING ACTIVITIES

YTD ACTUAL@ 31 OCTOBER 2017

ACTUAL @30 JUNE 2017

Receipts122,694,652 122,694,652 Rates Revenue 77,982,329 116,499,160

1,212,300 1,212,300 Service Charges 1,107,347 1,219,67537,490,460 37,490,460 Fees & Charges 20,809,738 37,092,413

5,364,050 5,364,050 Interest Earnings 2,237,546 5,526,53510,069,900 10,096,400 Operating Grants, Subsidies & Contributions 3,098,901 13,433,603

1,066,043 1,066,043 All other revenue 392,601 2,008,2466,184,086 6,184,086 GST Inflow 1,546,014 4,567,518

184,081,491 184,107,991 Total Receipts 107,174,476 180,347,150Payments

(36,864,012) (36,864,012) Materials & Contracts (13,700,968) (29,979,569)(6,990,378) (6,990,378) Utility Charges (1,784,266) (6,239,285)

(76,121,490) (76,121,490) Employee Costs (24,249,988) (70,333,104)(604,260) (604,260) Insurance Payments (962,879) (1,308,835)

(2,202,850) (2,202,850) Interest Payments (361,653) (2,044,644)(1,970,172) (1,970,262) Other Payments (357,297) (1,427,185)(6,007,823) (6,007,823) GST Outflow (1,446,182) (4,475,414)

(130,760,985) (130,761,075) Total Payments (42,863,233) (115,808,035)53,320,505 53,346,915 Net cash provided / (used) by operating activities 64,311,243 64,539,115

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(46,433,910) (48,453,400) Purchase / Construction of capital assets (7,514,333) (42,872,526)(58,131,290) (59,366,360) Purchase / Development of infrastructure (8,407,563) (46,555,735)

250,000 250,000 Transfer (to) from Trust Funds 26,470 -- - Proceeds from Disposal of Investments - 1,648,329

(104,315,200) (107,569,760) (15,895,427) (87,779,932)Receipts

8,954,380 9,194,470 Capital Grants, Subsidies & Contributions 6,776,057 12,898,2127,689,610 7,689,610 Developers Contributions 2,490,377 6,871,984

13,891,200 13,891,200 Proceeds from Sale of Fixed Assets 737,723 2,008,69930,535,190 30,775,280 10,004,157 21,778,895

(73,780,010) (76,794,480) Net cash provided / (used) by investing activities (5,891,269) (66,001,037)CASH FLOWS FROM FINANCING ACTIVITIES

12,646,440 12,646,440 Proceeds from Loan Borrowings - 10,575,000(6,825,173) (6,825,173) Repayment of Borrowings (1,824,562) (5,675,368)

82,931 82,931 Contributions - Self supporting loans 9,813 87,481- - ESL Movements 4,185,944 491,266

5,904,198 5,904,198 Net cash provided / (used) by financing activities 2,371,195 5,478,379(14,555,307) (17,543,367) Net increase / (decrease) in cash held 60,791,170 4,016,458117,612,880 117,612,880 Cash at the beginning of the year 137,263,976 133,247,518103,057,573 100,069,513 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 198,055,146 137,263,976

CITY OF SWANSTATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2017/18

REVISEDBUDGET2017/18 OPERATING REVENUE

YTD ORIGINALBUDGET

@ 31 OCTOBER 2017


2017

1,212,300 1,212,300 Service Charges 1,212,300 1,220,70037,490,460 37,490,460 Fees & Charges 27,339,526 27,665,169

2,712,359 2,712,359 Specified Area Rates 2,712,359 2,604,36510,069,900 10,096,400 Operating Grants, Subsidies & Contributions 3,988,307 3,098,901

5,364,050 5,364,050 Interest Earnings 2,211,476 2,198,551923,340 945,340 Other Revenue 296,230 392,601

57,772,409 57,820,909 Subtotal - operating revenue 37,760,199 37,180,287OPERATING EXPENSE

(76,251,490) (76,502,670) Employee Costs (25,058,064) (24,210,128)(36,884,430) (37,013,470) Materials & Contracts (12,879,017) (9,908,039)

(6,985,990) (6,985,990) Utility Charges (1,927,870) (1,784,266)(34,877,410) (34,877,410) Depreciation on Non-Current Assets (11,625,804) (11,449,380)

(2,202,850) (2,202,850) Interest Expenses (522,141) (361,653)(604,260) (604,260) Insurance Expenses (727,988) (655,138)

(1,970,172) (1,970,262) Other Expenses (699,956) (357,297)(159,776,602) (160,156,912) Subtotal - operating expense (53,440,839) (48,725,902)(102,004,193) (102,336,003) Net cash from / (Non) operating activities (15,680,640) (11,545,615)

Non Cash Items(175,714) (175,714) Movement in Deferred Rates (Non Current) (58,571) (359,141)1,612,095 1,612,095 Movement in Employee Provisions 537,365 1,246,760

34,877,410 34,877,410 Write Back Depreciation 11,625,804 11,449,38036,313,791 36,313,791 Total 12,104,597 12,336,999

Capital Works(58,131,290) (59,366,360) Purchase / Construction of infrastructure assets (19,377,097) (8,407,563)(21,522,030) (21,522,030) Developer contributions - Infrastructure - -(46,433,910) (48,453,400) Purchase / Construction of other capital assets (15,477,970) (7,514,333)

13,891,200 13,891,200 Proceeds from Sale of Fixed Assets 4,630,400 737,7238,954,380 9,194,470 Capital Grants, Subsidies & Contributions 2,187,907 6,776,0577,689,610 7,689,610 Developers contributions: Cash 2,563,203 2,490,3774,878,730 4,878,730 Developers contributions: In kind - -

18,250,000 18,250,000 In Kind Developer Contributions: Other - -(1,606,700) (1,606,700) Land Ceded to the Crown - -

(74,030,010) (77,044,480) Net Capital Outlays (25,473,557) (5,917,739)

Debt Management12,646,440 12,646,440 Proceeds from New Loans 4,215,480 -(6,825,173) (6,825,173) Repayment of Loans (2,275,058) (1,824,562)

82,931 82,931 Contributions to Debt 27,644 9,8135,904,198 5,904,198 Total 1,968,066 (1,814,749)

Other Funding Transactions250,000 250,000 Transfer (to) from Trust Funds 83,333 26,470

47,585,440 50,931,720 Transfers from reserves 15,861,813 10,282,889(44,822,930) (44,822,930) Transfers to reserves (14,940,977) (15,673,860)

3,012,510 6,358,790 Net Movement in Reserves 1,004,170 (5,364,501)

10,638,590 10,638,590 Opening Funds 1 July - Net Current Assets 10,638,590 23,359,393(86,293) (86,293) Less Closing Funds 30 June - Net Current Assets (104,218,432) (127,773,822)

10,552,297 10,552,297 Net Current Assets (Less Restricted) (93,579,842) (104,414,429)120,251,407 120,251,407 SHORTFALL TO BE MADE UP FROM RATES 119,657,207 116,720,035


CITY OF SWANRATE SETTING STATEMENT

financial management report - october 2017

Documents