Financial Management Report - February 2016 · The report shows Cash and Cash Equivalents at the...

Ordinary Meeting of Council 23 March 2016

5.1 FINANCIAL MANAGEMENT REPORT - FEBRUARY 2016

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

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Corporate)

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 29 February 2016.

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 AASB 1031 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 2015/2016 is variances greater or lower than 10% of the original adopted budget and greater than $10,000 in value.

DETAILS

The financial management report for the period ended February 2016 is included as an attachment to this report.

As the information contained in the Statement of Financial Activity is repeated in the Statement of Comprehensive Income and Statement of 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 $151.3m; this is less than budget by $1.4m year to date.

The actual expenditure from ordinary activities for the year to date is $88.7m; this is less than budget by $8.3m.

Currently the net result is a $83m surplus compared to $79.9m budget year to date.

2. Statement of Financial Position

Current Assets have decreased by $12.1m in February mainly due to Cash and Cash Equivalents. Rates Debtors reduced by $4.4m contributing to the overall result. Property, Plant and Equipment increased by $5.6m in January, due to an increase in expenditure on infrastructure mainly within Roads and Parks. Current Liabilities have decreased by $4m mainly within Trade and Other Payables.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of February 2016 with a balance of $161.6m. Cash and cash Equivalents at the end of February 2015 reflected a balance of $136m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending February 2016


STRATEGIC IMPLICATIONS

Consistent with the City's Strategic Community Plan 2012-2022 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 February 2016 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

29th February 2016

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 - 4.7 5.0 Cash and Investments 5.1 -5.2 Investment Report 5.3 - 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 29th February 2016

2.0 Statement of Comprehensive Income (Performance)

Year to 29th February 2016 Annual AnnualBudget Bgt Var

$000's %

Revenue 151,267 152,673 -1% 161,490 94%

Expenses (88,681) (96,956) -9% (146,207) 61%

Profit/Loss 62,586 55,717 11% 15,283 410%

Non-operating 20,464 24,145 -18% 83,939 24%

Net Result 83,050 79,862 4% 99,222 84%

3.0 Statement of Financial Position2015 2016 2016June January February$000's $000's $000's

Current

Assets 129,969 202,438 190,381

Liabilities 29,276 29,167 25,209

Non Current

Assets 1,291,276 1,309,170 1,314,772

Liabilities 43,379 48,881 48,304

Net Assets 1,348,590 1,433,560 1,431,640

4.0 Capital PaymentsYear to 29th February 2016 Annual Annual

February Budget Var Budget Bgt Var$000's $000's % $000's %

Buildings 6,181 7,295 85% 10,943 56%Drainage 2,396 2,647 91% 3,971 60%

Footpaths 863 721 120% 1,082 80%Parks 16,888 13,879 122% 20,819 81%

Roads 25,518 23,947 107% 35,921 71%P&E, Other 19,578 15,061 130% 22,591 87%

Total 71,424 63,551 112% 95,327 75%

5.0 Cash and InvestmentsVolume Held

January February Ave Interest$000's $000's %

Cash 17,525 8,808 2.0%

24 hr Call 10,296 12,434 2.0%Cash Mgt 0 0 0.0%

Floating Rate 0 0 0.0%Term Deposits 141,000 140,000 2.9%

Total 168,821 161,242 2.3%

6.0 Debtors January February Change

$000's $000's %Trade Debtors

Current 770 227 -71%> 30 Days 132 716 442%> 60 Days 61 89 46%> 90 Days 1,036 1,084 5%

Total Trade 1,999 2,116 6%Rates Debtors

Rates Debtors 27,318 22,958 -16%Other Debtors 3,846 3,348 -13%

Total Debtors 33,163 28,422 -14%

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

%

The Net Result achieved was 4% above ytd budget. Revenue was marginally behind budget by 1% mainly due to Operating Grants Subsidies & Contributions being under by $2.1m. Quarterly instalments for the Financial Assistance Grants have been reduced in the current year as a result of $2.6m of the grants being received and accounted for in 2014/15. Operating Expenses continue to be less than anticipated with Materials & Contracts showing the biggest variance of $4.9m. Projects Studies and Surveys plus Contracts have expended less than anticipated by $2.1m and $2m respectively. Employee Costs also contributed $3.1m to the variance, partially due to some positions being vacant for part of the financial year and some positions yet to be filled. A below budget result of 18% or $3.7m is reflected within Non-Operating Income. Developers Contribution Plans accounted for $3.1m while Profit/Loss on Disposal of Assets accounted for $2.m. Non-Operating Grants, Subsidies & Contributions was above budget by $1.1m, reducing the impact of the variance.

The closing balance for Cash and Cash Equivalents is $161.6m, $25.7m higher than the 2015/16 balance. Six months term deposits currently offer the highest interest rates of up to 3.12% pa. Rates fall to around the 2.9% mark with the twelve month term. The City has recently made the most of the higher six month rate with several investments around this time frame, whilst ensuring its future cashflow requirements are considered. The City's investment portfolio return is 2.67% pa for the Financial Year to date, 0.47% pa above the bank bill index benchmark.

Current Assets have decreased by $12m in February mainly due to Cash and Cash Equivalents used to pay creditors. Rates Debtors reduced by $4.36m contributing to the overall result.

The Current Ratio increased to 4.68% in February as a result of a decrease in Trade and Other Payables.

The increase in Property, Plant and Equipment of $5.6m is attributed to increase in infrastructure expenditure for Roads and Parks.

Current Liabilities have decreased by $3.9m mainly due to Trade and Other Payables.

1.61

4.35 4.68

1.00 1.00 1.00

-

1.00

2.00

3.00

4.00

5.00

6.00

June 15 Jan-16 Feb-16

C.Assets C.Liabilities

Capital Works reflected ytd costs of $71.4m, consisting of $48.2m actual and $23.1m committed costs. Buildings have utilised $6.1m of its $7.3m ytd budget. 35% of this expenditure is represented by Ellenbrook District Open Space Southern, which is in the last stages of construction. The project has recorded $1.9m actual costs.

Parks are overspent by 22% or $3m mainly due to Ellenbrook District Open Space South which has recorded $6.3m actual costs. The Park has exceeded its $11.8m annual budget by $1.2m. Committed costs are being reviewed and are expected to reduce. Roads have expended $17.2m in actual costs and recorded $8.2m committed costs. The two sections of Gnangara Road account for $14.6m of this. Significant costs were also recorded in: Lloyd Street $1.2m, Great Northern Highway/Bishop Road $2m and Hazelmere Industrial Area Infrastructure Road $1.9m.

0

300

600

900

1,200

Current > 30 Days > 60 Days > 90 Days

$000

's

Trade Debtors

January February

AA+ to AA- 63% A+ to

A- 37%

There were full and partial payments made by debtors during the month, however overall Trade Debtors increased by 6%.

Unpaid invoices moved from the Current to 30 Day category contributing to a decrease of 71% in the former and an increase of 442% in the latter. Similarly, unpaid invoices moved from 30 to 60 Days and from 60 to 90 Days resulting in an increase of 46% and 5% respectively.

Rates debtors, excluding Emergency Services Levy reduced by $4.36m or 16% on the prior month's closing balance. The reduction was smaller than in January as there were no instalments or interims due in February.

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 Income 2.0 Statements of Comprehensive Income

2.2

Original Budget

2015/16

Revised Budget

2015/16

YTD CURRENTREVISED BUDGET@ 29 FEBRUARY

2016

YTD ACTUAL@ 29 FEBRUARY

2016$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities110,516,610 110,516,610 Rates Revenue 110,350,733 109,819,011 (531,723)

1,120,000 1,120,000 Service Charges 1,120,000 1,179,786 59,78633,627,090 33,787,290 Fees & Charges 29,093,027 29,442,683 349,65610,193,970 10,382,810 Operating Grants, Subsidies & Contributions 8,066,186 5,963,950 (2,102,236) U (26%)

4,834,610 4,834,610 Interest Earnings 3,492,719 3,870,650 377,932 F 11%821,750 848,880 Other Revenue 550,295 990,824 440,529 F 80%

161,114,030 161,490,200 Sub-Total Ordinary Revenue 152,672,960 151,266,904 (1,406,056)

Expenses from Ordinary Activities(71,153,960) (71,125,430) Employee Costs (47,048,111) (43,939,629) 3,108,481(30,303,249) (30,668,829) Materials & Contracts (20,497,480) (15,608,956) 4,888,524 F (24%)

(6,565,680) (6,565,680) Utility Charges (4,097,502) (3,302,210) 795,292 F (19%)(33,256,980) (33,256,980) Depreciation on Non-Current Assets (22,171,320) (22,779,424) (608,104)

(2,083,330) (2,083,330) Interest Expenses (1,065,936) (1,082,452) (16,515)(674,660) (674,660) Insurance Expenses (918,067) (963,411) (45,345)

(1,832,368) (1,832,368) Other Expenses (1,157,276) (1,005,016) 152,260 F (13%)

(145,870,227) (146,207,277) Sub-Total Ordinary Expenses (96,955,692) (88,681,099) 8,274,593

15,243,803 15,282,923 Ordinary Activities 55,717,268 62,585,806 6,868,538

Add Non-Ordinary Activities16,255,830 16,272,810 Non-Operating Grants, Subsidies & Contributions 11,624,533 12,772,086 1,147,553 F 10%30,138,230 30,138,230 Non-Operating Gifted Assets from Developers: Other - - -13,620,580 13,620,580 Developer Contribution Plans: Cash 9,080,387 5,970,769 (3,109,617) U (34%)11,861,520 11,861,520 Developer Contribution Plans: In Kind - - -

1,814,690 3,499,690 Profit / (Loss) on Disposal of Assets 2,894,793 876,566 (2,018,227) U (70%)- 544,730 Profit / (Loss) on Impairment of Investments 544,730 844,869 300,139 F 55%

8,000,000 8,000,000 Unrealised Gain from Other Financial Assets: EMRC - - -

96,934,653 99,220,483 Net Result 79,861,711 83,050,096 3,188,385

Financial Ratios 2013 2014 2015 Current Month

OPERATING SURPLUS RATIO 15.00% 22.00% 22.00%

DEBT SERVICE COVER RATIO 12.38 11.17 13.73

OWN SOURCE REVENUE COVERAGE RATIO 1.09 1.05 1.10

CITY OF SWAN

FOR THE PERIOD 1 JULY 2015 to 29 FEBRUARY 2016

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.

42.99%

19.66

1.64

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.

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE

2.3

Original Budget

2015/16

Revised Budget

2015/16

YTD CURRENTREVISED BUDGET@ 29 FEBRUARY

2016


2016 $ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities120,868,840 120,868,840 General Purpose Funding 117,940,873 115,928,134 (2,012,740)

173,830 173,830 Governance 106,552 550,716 444,164 F 417%2,271,040 2,271,040 Law Order & Public Safety 2,007,198 1,936,075 (71,123)

273,000 277,080 Health 186,080 285,606 99,526 F 53%4,370,990 4,635,950 Education & Welfare 3,693,113 3,411,177 (281,936)

60,000 60,000 Housing 40,000 43,461 3,46120,099,930 20,114,970 Community Amenities 19,648,327 19,974,087 325,760

6,765,350 6,857,440 Recreation & Culture 4,714,620 4,872,951 158,3311,571,780 1,571,780 Transport 1,230,017 1,247,711 17,6952,027,000 2,027,000 Economic Services 1,351,333 1,221,826 (129,508) U (10%)2,632,270 2,632,270 Other Property & Services 1,754,847 1,795,161 40,314

161,114,030 161,490,200 Sub-Total Revenue 152,672,960 151,266,904 (1,406,056)

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,468,195) (2,468,195) General Purpose Funding (1,470,635) (1,473,208) (2,573)(12,747,758) (12,640,958) Governance (8,561,043) (6,531,815) 2,029,227 F (24%)

(5,855,057) (5,851,677) Law Order & Public Safety (3,902,814) (3,622,836) 279,978(1,676,737) (1,672,647) Health (1,113,735) (1,083,441) 30,294(8,889,149) (9,162,879) Education & Welfare (6,232,842) (5,450,961) 781,881 F (13%)

(101,796) (101,796) Housing (67,864) (54,696) 13,168 F (19%)(23,377,079) (23,372,239) Community Amenities (15,390,303) (13,770,929) 1,619,374 F (11%)(44,519,558) (44,645,958) Recreation & Culture (29,760,446) (29,845,167) (84,721)(35,826,811) (35,930,421) Transport (23,887,816) (21,079,532) 2,808,284 F (12%)

(5,888,414) (5,783,184) Economic Services (3,820,379) (3,140,437) 679,942 F (18%)(2,436,343) (2,493,993) Other Property & Services (1,681,878) (1,545,624) 136,254

(143,786,897) (144,123,947) Sub-Total Non-Borrowing Expense (95,889,756) (87,598,646) 8,291,110

Borrowing Costs Expense(415,020) (415,020) Governance (207,203) (250,934) (43,731) U 21%(678,200) (678,200) Recreation & Culture (351,800) (351,533) 268(546,920) (546,920) Transport (227,697) (206,751) 20,946(443,190) (443,190) Other Property & Services (279,236) (273,234) 6,002

(2,083,330) (2,083,330) Sub-Total Borrowing Costs (1,065,936) (1,082,452) (16,515)

15,243,803 15,282,923 Net Operating Result 55,717,268 62,585,806 6,868,538

Non-Operating Grants, Subsidies & Contributions25,482,100 25,482,100 Governance 9,080,387 5,970,769 (3,109,617) U (34%)

620,000 620,000 Law Order & Public Safety 413,333 605,000 191,667 F 46%381,330 381,330 Education & Welfare 254,220 237,513 (16,707)

9,335,500 9,674,130 Recreation & Culture 1,908,963 301,914 (1,607,050) U (84%)36,057,230 35,735,580 Transport 9,048,017 11,627,660 2,579,643 F 29%71,876,160 71,893,140 20,704,920 18,742,856 (1,962,064)

Profit/(Loss) on Disposal of Assets863,750 2,163,750 Recreation & Culture 1,875,833 309,552 (1,566,281) U (83%)950,940 1,335,940 Transport 1,018,960 567,279 (451,681) U (44%)

- - Other Property & Services - - -1,814,690 3,499,690 2,894,793 876,565 (2,018,228)

Profit/(Loss) on Impairment of Investments- 544,730 General Purpose Funding 544,730 844,869 300,139

Unrealised Gain from Other Financial Assets: EMRC8,000,000 8,000,000 General Purpose Funding - - -

96,934,653 99,220,483 Net Result 79,861,711 83,050,096 3,188,385


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM CITY OF SWAN

3.1

Description

2. Statement of Change in Equity

Financial Ratios 2013 2014 2015 Current MonthCURRENT RATIO 1.19 1.52 1.61 4.68

QUICK RATIO 1.18 1.52 1.61 4.68

UNTIED CASH TO TOTAL CREDITORS 3.96 3.83 5.50 39.73

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 30 June due to much of the cash reserves of the City having been expended by this time. 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.

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%).

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @29 FEBRUARY 2016

ACTUAL @30 JUNE 2015

Current AssetsCash and cash equivalents 161,648,385 119,701,485Investments - -Trade and other receivables 28,422,357 9,783,428Other Assets 279,484 416,115Inventories 30,514 68,359

Total: Current Assets 190,380,740 129,969,387

Non Current AssetsTrade and other receivables 2,487,946 2,315,897Property, plant and equipment 1,258,782,037 1,235,457,340Other Financial Assets 53,502,350 53,502,350

Total: Non Current Assets 1,314,772,332 1,291,275,587

Total Assets 1,505,153,073 1,421,244,975

Current LiabilitiesShort term borrowings 2,114,726 4,640,232Trade and other payables 10,611,565 13,176,072Income in advance 1,024,303 -Provisions 11,458,179 11,459,234

Total: Current Liabilities 25,208,772 29,275,539

Non Current LiabilitiesLong term borrowings 41,585,856 36,027,075Trade and other payables 5,172,614 5,963,224Provisions 1,545,941 1,389,341

Total: Non Current Liabilities 48,304,411 43,379,640

Total Liabilities 73,513,183 72,655,179

NET ASSETS 1,431,639,890 1,348,589,796

Equity AccountsAccumulated Surplus 874,031,269 800,285,085Asset Revaluation Reserves 464,384,313 464,384,315Cash Backed Reserves 93,224,307 83,920,395

TOTAL EQUITY 1,431,639,889 1,348,589,796

CITY OF SWANSTATEMENT OF FINANCIAL POSITION

AS AT 29 FEBRUARY 2016

3.3

RETAINEDSURPLUS

ASSET REVALUATION RESERVES

RESERVES CASH / INVESTMENT BACKED

TOTALEQUITY

Balance as at 1 JULY 2013 636,504,887 371,874,179 51,911,917 1,060,290,981

Changes in Accounting Policy - - - -

Correction Of Errors - - - -

Restated Balance 636,504,887 371,874,179 51,911,917 1,060,290,981

Net Result 94,232,674 - - 94,232,674

Total Other Comprehensive Income - 18,388,588 - 18,388,588

Transfer to Trust Fund from Reserves - - - -

Transfer from/(to) Reserves (15,884,101) - 15,884,101 -

Balance as at 30 JUNE 2014 714,853,460 390,262,767 67,796,018 1,172,912,245

Net Result 101,556,002 - - 101,556,002

Total Other Comprehensive Income - 74,121,548 - 74,121,549

Transfer from/(to) Reserves (16,124,378) - 16,124,378 -

Balance as at 30 JUNE 2015 800,285,085 464,384,315 83,920,395 1,348,589,796

Net Result 83,050,096 - - 83,050,096

Total Other Comprehensive Income - - - - Transfer from/(to) Reserves (9,303,909) - 9,303,909 - Balance as at 29 FEBRUARY 2016 874,031,269 464,384,313 93,224,307 1,431,639,889

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS29-Feb-16 30-Jun-15

Cash / Investment Backed Reserves

Aged Services Asset Replacement 12,726 188,951

City Asset Replacement 5,673,453 3,764,752

Ellenbrook Community Facilities 849,948 868,983

General Insurance 437,255 530,320

Gravel Pit Rehabilitation 369,655 298,140

Hazelmere/Guildford Drainage 1,564,045 1,106,959

Midland District Drainage Development 7,170,138 6,936,148

Plant & Equipment 1,740,093 3,137,491

Vale Community 1,504,080 1,544,516

Waste Management 5,528,046 4,449,818

Employee Entitlements - LSL 5,569,229 4,578,367

Hazelmere Industrial Area Infrastructure - Stage 2 7,413,115 4,130,404

Ellenbrook Bridge 1,982,900 1,806,713Strategic Development 594,269 -

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 13,125,604 11,640,110

- Caversham 14,241,945 12,908,754

- Dayton (West Swan East) 20,784,825 18,313,657

Other Restricted Assets

- Midland Brick 30,284 35,275

- Drainage 62,584 62,584

- Footpath 227,958 155,648

- Malaga Parking 117,000 -

- Midland Parking 35,000 35,000

- Ellenbrook Parking 819,880 123,663

- Roadwork 2,814,199 2,731,418 - Unspent Specific Grants - 4,130,393

- Public Art 556,075 442,333

Sub total Cash / Investment Backed Reserves 93,224,307 83,920,395

Add: other restricted cash / investment assets (i.e Bonds) 5,172,614 6,374,823Total of restricted cash / investment assets 98,396,921 90,295,218Add: Unrestricted cash / investment assets (i.e. MUNI funds) 63,251,465 29,406,267TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 161,648,385 119,701,485Consisting of: Cash and Cash Equivalents 161,648,385 119,701,485 Investments - -

161,648,385 119,701,485


CITY OF SWANSTATEMENT OF CHANGES IN EQUITY

4.1

Comments► Ellenbrook District Open Space Park (South) showed total costs of $13m against annual budget of $11.8m. $2.2m actual costs were recorded during February. A budget adjustment to address the overspend is yet to be processed. Works are progressing well; approximately 75% of the playing field has been laid with drainage cells and shock pads. Work has also commenced to lay artificial turf on the south east corner of the playing field.

► A Roads to Recovery grant for $3m was received during the month and this will be allocated to different projects accordingly.

►Campersic Road recorded $12k actual and $295k committed costs during the month, resulting in an overspend of $253k. Construction works for the first section (Stock Road to William Street) have been finished. Works for the next section will begin in March.

► Gnangara Road (Alexander Drive to Beechboro Road North) has realised 94% of its $8.5m annual budget. $842k actual costs and $887k committed costs were recorded during the month. Road markings at the intersection of Beechboro Road North and Gnangara Road are now complete. Works between Alexander Drive and the Water Corporation Pump Station will commence in March. Both Western Power and Water Services are still to complete plant diversions of this section of the carriageway before road works can fully commence.

► Overspend in the following listed projects plus several other smaller ones has been reviewed and will be addressed by budget adjustments: Clayton Street $336k, Margaret Street drainage $393k, Campersic Road $253k and Great Northern Highway/Bishop Road $182k.

► West Swan Road committed costs of $306k during the month, utilising 45% of its $681k annual budget. Works have been completed with the exception of line markings which are due to be done in the short term.

4.0 Capital

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

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

mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 15/16 Budget 15/16

Prior Year Actual Prior Year Budget

0

5,000

10,000

15,000

20,000

25,000

30,000

Buildings Drainage Footpaths Parks Roads P&E, Other

mill

ions

$

YTD Capital Works expenditure Actual & CommittedBudget

Current Budget YTD Expense Current Budget

JobNumber

Job Name

FullYearExpense Actual Commited Total % of

BudgetFullYearRevenue

YTDRevenue

% ofBudget

BCW04134 Administration Building 332,000 60,186 9,081 69,267 21

BCW05104 Altone Park Library 69,000 60,090 60,090 87

BCW05106 Community Facilities 50,000 17,383 17,383 35

BCW05110 Midland Town Hall Build Imp 2,970 1,840 1,840 62

BCW05114 Minor Capital Building Projec 85,000 33,580 30,030 63,610 75

BCW05122 Swan Caring Aged Care Facilit 3,300 3,284 3,284 100

BCW05129 Guildford Visitor Centre 141,500 45,643 45,643 32

BCW05137 Altone Leisure Centre 340,000 9,720 259,648 269,368 79

BCW05139 New Depot 15,420 14,536 14,536 94

BCW06110 Ballajura Aquatic Centre 227,000 27,044 1,600 28,644 13

BCW06117 Stratton Community Centre 24,000 12,232 12,232 51

BCW06119 Pickett Park Hall 241,290 81,306 138,223 219,529 91

BCW07108 Swan Park Recreation Centre 137,410 104,664 7,915 112,579 82

BCW07116 Airconditioner Renewal Progra 47,000 64,410 64,410 137

BCW07117 Lock & Key Replacement Progra 92,000 46,743 3,510 50,253 55

BCW07122 South Ballajura Com Centre 25,000

BCW08109 Bullsbrook Waste Transfer Sta 220,640 44,404 24,635 69,039 31

BCW08116 Midland Junction Arts Centre 37,360 19,389 18,672 38,061 102

BCW08120 Midland Youth Services Hub 562,000 118,893 59,426 178,319 32

BCW09102 Bus Shelters 55,170 55,165 55,165 100

BCW09104 Bin Compounds 22,420 1,304 1,304 6

BCW09105 Energy Conservation Measures 145,000 11,188 2,175 13,363 9

BCW09106 Switchboards Renewal 20,000 11,789 9,589 21,377 107

BCW09107 Electrical Plant & Equipment 25,000 1,033 1,033 4

BCW09108 Heritage Precincts 365,000 346,691 15,837 362,529 99

BCW10102 Integrated Systems Program 130,000 53,973 27,792 81,765 63

BCW10106 Equipment Fire System Safety 25,000 10,992 3,719 14,711 59

BCW11103 Ellenbrook DOS Nthn 128,500 132,317 1,225 133,541 104

BCW11104 Ellenbrook DOS Sthn 2,160,490 1,965,236 183,765 2,149,002 99 500,000

BCW11106 Ellenbrook Recreation Centre 166,280 24,581 8,670 33,251 20

BCW11107 Ellenbrook Resource Centre 47,000 30,129 23,985 54,114 115

BCW11109 Building Disposal 24,000

BCW11112 Malvern Springs Community Cen 287,500

BCW12102 Pickett Park Community Facili 998,420 283,252 179,653 462,905 46

BCW12104 15 Keane Street Upgrade 200,000 26,349 25,267 51,616 26

BCW12110 Lilac Hill Pavilion 7,318 1,876 9,195

BCW13101 Ballajura Place Office 200,000 917 917

BCW13102 Caversham Community Centre 725,360 63,632 193,657 257,289 35

BCW13107 Old Mechanical Workshop 26,000 25,883 25,883 100

BCW14101 Altone Place Office 30,000 4,313 4,313 14

BCW14103 Brabham Community Centre 100,000 1,550 1,550 2

BCW14104 Dayton Community Centre 163,000 122,652 5,202 127,853 78

BCW14106 North Swan Park Pavilion 100,000 23,284 23,284 23

BCW14107 Rosher Oval Hall & Pavilion 100,000 4,779 4,779 5

BCW14109 Operations Centre 500,000 6,780 236,000 242,780 49

BCW14111 Bullsbrook Sports Club 1,198,640 153,615 463,735 617,350 52

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 29 FEBRUARY 2016

3/03/2016 1:03:06 PM


JobNumber

Job Name



YTDRevenue

% ofBudget

BCW15001 Hazelmere Hall 40,000

BCW15002 Koongamia Pavilion 40,000 345 345 1

BCW15003 Lowery Park Pavilion 12,000 4,983 4,983 42

BCW15004 Gidgegannup Fire Station 180,000 14,100 9,432 23,532 13 180,000

BCW15005 District Park Active- Buildin 120,000 82,896 82,896 69

BCW Building Capital Works 10,987,670 4,099,661 2,081,050 6,180,712 56 680,000 0 0

DRN04213 Midland Drainage 50,000 55,707 55,707 111

DRN06203 Sayer Street 157,300 176,615 11,801 188,416 120

DRN06206 John St Midland 85,800 5,014 1,090 6,104 7

DRN08203 Hazelmere/Guildford Drainage 75,000 33,007 29,828 62,835 84

DRN09202 Kidman Avenue 179,200 178,491 178,491 100

DRN10201 George St Midland 414,700 157,791 10,361 168,152 41

DRN11205 Charles Street 103,410 103,412 103,412 100

DRN12205 Hamersley Street 178,750 16,616 11,105 27,720 16

DRN13202 Dudley Street Midland 180,000 112,302 5,266 117,568 65

DRN13203 Ewart Street Midland 130,000 4,965 31,426 36,391 28

DRN13209 Other Drainage Upgrades 50,000 32,773 1,685 34,458 69

DRN14203 Elvire Street 370,000 208,059 44,395 252,454 68

DRN15000 Kay Place 207,350 84,448 18,002 102,450 49

DRN15001 Margaret Street 457,600 796,382 53,959 850,342 186

DRN15002 Gartrell Street 141,480 10,868 1,090 11,958 8

DRN15006 Ford Street 681 681

DRN15007 Spring Street 225,850 61,020 36,206 97,226 43

DRN15008 Lamont Street 150,150 35,424 36,986 72,410 48

DRN15009 Fawell Street 71,500 12,483 1,090 13,573 19

DRN15010 Taylor Crescent 135,850 5,014 1,090 6,104 4

DRN15011 Cole Street 107,250 5,316 1,090 6,406 6

DRN15012 Bushby Street 425,000 3,302 3,302 1

DRN15013 Midland Biofilters - 100,000

DRN15014 Bellevue Heritage Railway 100,000

DRN Drainage 4,096,190 2,099,688 296,470 2,396,157 58 0 0 0

FTP06502 Footpaths New 397,980 390,490 6,859 397,350 100 4,980 4,977 100

FTP06505 Footpath Replacements 160,000 154,140 1,058 155,198 97

FTP09501 Swan Cycle Planning Project 325,000 133,991 165,476 299,467 92 125,000

FTP10101 Universal Access - Footpath 15,000 3,718 3,718 25

FTP13502 West Parade Footpath 15,060 6,946 6,946 46

FTP Footpaths 913,040 689,285 173,393 862,679 94 129,980 4,977 4

GRP04100 Gravel Pit 32,984 32,984 97,061

GRP Gravel Pit 0 32,984 0 32,984 0 97,061

PEQ07103 Intranet Redevelopment 20,000 12,032 1,464 13,496 67

PEQ08104 CCTV - Safer Suburbs 956,050 496,255 440,420 936,676 98 620,000 605,000 98

PEQ09101 ePlanning 65,000 42,400 42,400 65

PEQ10101 Environmental Induction 8,000


3/03/2016 1:03:06 PM


JobNumber

Job Name



YTDRevenue

% ofBudget

PEQ10104 Website Development - SVC 109,620 27,405 82,215 109,620 100

PEQ11102 Midland Parking Technology 80,970

PEQ12101 Aurion - Electronic Forms 13,200 13,200

PEQ12102 Aurion - Performance 1,650 20,870 22,520

PEQ12105 Unified Communications (PABX) 1,400 1,402 1,402 100

PEQ13102 COS Website Maintenance 48,000 17,133 17,133 36

PEQ14101 Asset Management Software 100,000

PEQ14103 User Generated Content System 30,000

PEQ14104 Herne Hill - Telecomunication 325,350 4,210 4,210 1

PEQ14106 Graffiti Reporting Upgrade 16,510 8,934 8,934 54

PEQ15000 Fire Fighting Assets 20,000

PEQ Plant & Equipment 1,780,900 569,021 600,569 1,169,590 66 620,000 605,000 98

PRK04324 Residential Street Trees 36,000 12,370 12,370 34

PRK04326 Minor Park Furniture 20,000 850 850 4

PRK04328 Rural Street Trees 20,000 (854) 14,721 13,867 69

PRK05304 Parks & Streetscapes Minor 238,630 211,386 200 211,586 89 38,630 38,625 100

PRK05307 Swan Regional Riverside Park 250,000 2,645 213,485 216,130 86 250,000

PRK05309 Tourism Signage 53,000 15,052 8,680 23,732 45

PRK05311 Emu Lake Restoration 259,300 487 9,850 10,337 4

PRK05317 Playgrounds - Ellenbrook 75,250

PRK06316 Coolamon Oval 35,000

PRK06317 Aveley Shade Structure 47,160 338 41,010 41,348 88

PRK06318 Playgrounds - Aveley 400,000

PRK07309 Kings Meadow 20,000 1,594 1,594 8

PRK07337 Streetscaping - Ballajura 247,410 9,690 5,628 15,318 6

PRK08302 Bellevue Landscape Upgrade 300,000 1,519 1,519 1

PRK08307 Bushland Fencing 55,000 10,629 14,178 24,807 45

PRK08318 Public Art 156,000

PRK09302 Chequers Club Bore/Irrigation 50,000 44,000 44,000 88

PRK09305 City Gateways Project 450 452 452 100

PRK10102 Playspace Replacemet Pgm 200,000 18,783 145,619 164,402 82

PRK11101 Regional Open Space - Whitema 90,000 41,044 41,044 46

PRK11102 Reticulation/Hydrozoning 376,480 20,726 113,999 134,725 36

PRK11105 Ellenbrook DOS North 45,000 44,620 44,620 99

PRK11106 Ellenbrook DOS South 11,751,650 6,276,527 6,752,312 13,028,839 111 1,500,000

PRK11107 Farrall Oval 80,000 77,836 7,648 85,484 107

PRK12306 City Wide Fencing Water Bodie 2,140 2,138 2,138 100

PRK12308 Lanius Park Drain 133,160 4,543 4,543 3 (71,166)

PRK13301 Boat Ramp, Fishmarket Rsv Gfr 480,740 35,023 14,814 49,837 10 85,500

PRK13303 Woodlake Park 75,000 43,007 22,542 65,549 87

PRK13307 Altone Oval 85,000 23,876 2,373 26,248 31

PRK13308 Pickett Park 100,000 44,573 10,508 55,082 55

PRK14301 Paradise Quays 3,271,120 1,659,428 16,164 1,675,592 51

PRK14302 Aveley Multi-Use Games Area 196,600

PRK14303 Aveley Youth Park Improvement 58,230 58,229 58,229 100

PRK14304 Bennett Springs Park 50,000 1,988 950 2,938 6


3/03/2016 1:03:06 PM


JobNumber

Job Name



YTDRevenue

% ofBudget

PRK14307 District Park Active 200,000

PRK14308 Foreshore Restoration 542,550 141,408 46,209 187,617 35 140,000 200,000 143

PRK14310 Midland Oval Master Plan 122,350 40,956 526 41,482 34

PRK14313 Gidgegannup Showgrounds 319,450 165,651 146,486 312,137 98

PRK14315 Annies Landing Playgrounds 46,000

PRK14316 Lexia Playground 46,000 40,250 40,250 88

PRK15000 Art Activation Street Banners 50,000

PRK15001 Coolamon Netball Courts 326,000 53,935 53,935 17

PRK15002 Ballajura Half Basketball Cou 30,000 5,070 5,070 17

PRK15003 Manetti Rose 10,000 6,925 450 7,375 74

PRK15004 Central Lakes 94,000 39,824 10,430 50,254 53

PRK15005 Middle Swan Reserve 44,000 58,468 1,885 60,353 137

PRK15006 Dayton Local Park - Passive 71,913 71,913

PRK Parks 21,088,670 9,196,787 7,690,780 16,887,567 80 2,014,130 167,459 8

RDN04410 Cassowary Drive 111,000 5,860 91,427 97,287 88 60,000 48,000 80

RDN04424 Widgee Road 53,480 52,900 52,900 99

RDN04426 Chittering Road 9,770 2,200 2,200 23

RDN04428 Railway Parade 110,000 751 1,950 2,701 2

RDN04430 Taylor Road 105,000 350 60,632 60,982 58

RDN04443 Charles Street 100,000 32,836 32,836 33

RDN04446 West Swan Rd/ Millhouse Rd 50,000 7,546 7,546 15

RDN04447 West Swan Road 681,920 561 305,754 306,316 45 255,860 102,342 40

RDN04461 Ridgetop Trail 32,000 21,339 516 21,854 68

RDN04468 Gnangara Road 6,282,990 5,704,868 886,313 6,591,180 105 1,725,330

RDN05401 Midland Parking 40,000 1,205 8 1,213 3

RDN05402 Street Lighting Upgrades 243,080 4,305 49,533 53,838 22

RDN05408 Morrison Road 418,260 106,019 203,956 309,975 74 150,000

RDN05423 Local Road Prog - City Wide 2,311,000 3,363,128 146

RDN05426 Marshall Rd(Belefin to Hepbur 213,000 158,595 158,595 74 141,850 113,474 80

RDN05457 O'Brien Road 183,180 183,183 183,183 100 61,334

RDN05459 Clenton Road 76,770 76,769 76,769 100 48,000

RDN06420 Bridge Works 900,330 29,328 74,160 103,488 11 375,330 22,500 6

RDN06421 Investigation,Design Projects 100,720 167,431 1,500 168,931 168

RDN06450 Lloyd Street 2,742,060 1,186,208 752 1,186,960 43

RDN07402 Local Road Program-Testing 5,000 777 500 1,277 26

RDN07403 Contributions For Works To 200,000 12,790 43,383 56,173 28

RDN07412 Reid Highway 4,313 4,313

RDN07423 Camboon Road 194,000 1,037 30,859 31,896 16

RDN07425 Beach Road/ Alexander Drive 156,000 1,349 1,349 1 156,000 128,400 82

RDN07426 Marangaroo Dr/ Illawarra Cres 123,000 2,582 600 3,182 3 123,000 49,200 40

RDN07439 GEH/ Ferguson Street 10,000 9,200 9,200 92

RDN07451 Warbrook Road 104,180

RDN07452 Lord Street 1,113,770 527,834 1,293 529,127 48

RDN07454 Malaga Industrial Carparking 200,000 6,667 113 6,780 3

RDN08405 Carpark Renewals 10,000 12,928 375 13,303 133

RDN08407 Clayton Street 599,980 888,683 47,688 936,371 156 124,667


3/03/2016 1:03:07 PM


JobNumber

Job Name



YTDRevenue

% ofBudget

RDN08408 Alexander Drive 27,875 1,317 29,192 55,000

RDN08427 Pinaster Parade 70,000

RDN08436 Jenkins Road 75,000 462 52,571 53,033 71

RDN08440 Traffic Safety Major Projects 20,000 2,974 241 3,216 16

RDN08441 Campersic Road 56,300 12,728 296,800 309,529 550 56,300 72,000 128

RDN09440 Bishop Road 419,800 4,992 224 5,215 1 129,770

RDN10235 Swan Road 60,000 17,629 32,493 50,122 84

RDN10242 McDonald Street 175,000

RDN11201 Hazelmere Ind Area Infrast RD 6,254,100 1,284,440 659,618 1,944,058 31 55,440 55,439 100

RDN11203 Suffolk Street 50,000 3,898 3,898 8

RDN12403 Henley Brook Avenue 50,000 22,228 2,471 24,699 49

RDN13204 Gnangara Road 8,543,090 3,829,123 4,168,325 7,997,448 94 5,600,000 5,600,000 100

RDN13207 Kep Court 26,000

RDN13210 Neaves Road 405,000 252,946 43,407 296,353 73 405,000 162,000 40

RDN13214 Tomlin Street 30,000 2,772 47,190 49,962 167

RDN14201 Ellenbrook Bridge 250,000 70,534 27,882 98,416 39

RDN14203 Berry Road 130,000 1,519 89,864 91,383 70

RDN14205 Coolamon Boulevard 300,000 58,858 117,687 176,544 59

RDN15000 Agett Road 108,000 78,913 6,715 85,628 79

RDN15001 Bayview Vista 7,500 5,662 5,662 75

RDN15004 Crocker Drive 464,770 323,742 2,856 326,597 70 187,660 187,656 100

RDN15005 Forestview Boulevard 120,000 11,009 82,742 93,751 78

RDN15006 GNH/Bishop Road 1,799,390 1,362,024 619,470 1,981,494 110

RDN15007 Market Street 135,000 24,354 67,339 91,694 68

RDN15008 Marshall Road/Lord Street 100,000 6,023 7,753 13,776 14

RDN15009 Meadowbrook Ramble 35,000 41,650 41,650 119

RDN15010 Montgomery Way 114,000 108,820 108,820 95

RDN15011 Mountjoy Street 15,000

RDN15012 Padbury Avenue 33,220 1,649 1,649 5

RDN15013 Palm Crest 30,000 695 695 2

RDN15014 Rowe Street 95,000 70,843 70,843 75

RDN15015 Minor Capital Road Projects 51,630

RDN15017 Victoria Road 480,450 324,666 15,053 339,719 71 134,830 134,830 100

RDN15018 Victoria Street 160,000 3,060 122,014 125,074 78

RDN15019 Ferguson Street 150,000 56,511 12,966 69,477 46

RDN15020 Centuria Hotel Car Park 112,000

RDN15021 AP Recreation Centre Car Park 40,000 2,091 14,610 16,701 42

RDN Roads 36,134,740 17,223,453 8,294,570 25,518,022 71 11,867,370 10,327,970 87

CAPITAL JOBS TOTAL 75,001,210 33,910,879 19,136,833 53,047,711 71 15,311,480 11,202,467 73


3/03/2016 1:03:07 PM

CurrentBudgetFullYearExpense

ActualYTD

Expense

Commited Total % ofBudget

CurrentBudgetFullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 7,481,210 6,372,052 6,372,052 851609 Purchase of Assets Comm Bus P 1,066,574 1,066,574 1613 Purchase of Asset Office F & 599,460 207,367 29,468 236,834 401618 Purchase of Assets P & E 9,257,270 3,892,471 3,408,568 7,301,038 791623 Purchase of Assets Computer 1,416,720 805,235 29,348 834,582 591628 Purchase of Assets Vehicle 2,066,030 1,977,151 588,069 2,565,219 124

CAPITAL ASSETS TOTAL 20,820,690 14,320,848 4,055,451 18,376,300 88 0 0 0

GRAND TOTAL 95,821,900 48,231,727 23,192,284 71,424,011 75 15,311,480 11,202,467 73


3/03/2016 1:03:07 PM

5.1

4.0 DInvestments

Note: All figures have been updated to include Cash and Investments within the above graph.

0

40

80

120

160

200


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2013 2014 2015 2016

010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000130,000140,000150,000160,000170,000180,000


Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash

5.0 Cash and Investments

5.2

9.3%

17.5%

16.1%

27.3%

.1%

15.5%

14.2%

Investment Portfolio Exposure

ANZ Group - ANZ Commonwealth Bank of Australia - CBA-BWA

Members Equity Bank - MEB National Australia Bank - NAB

Other - Lehman Brothers Suncorp Bank - SUN

Westpac Group - WBC

(A-2, BBB+) MEB

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

(A-1+, AA-) NAB

(A-1, A+) SUN

(A-1+, AA-) ANZ

(A-1+, AA-) WBC

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Individual Institution Exposures vs. Policy Limits

Limits Funds

City of Swan Economic and Investment Portfolio Commentary

February 2016 Global issues:

� Global markets continued their shaky start to the year with equities in particular taking the brunt of investors’ concerns. The Australian shares joined the growing list of exchanges around the globe dropping more than 20% from recent highs.

� In the US, good jobs data and stronger than expected retail sales in January has helped keep slow but steady growth on track for the world’s largest economy.

� Saudi Arabia and Russia agreed to freeze oil production in an effort to stop the steadily declining price of oil which dropped below US$30/barrel in February. For the plan to work, several other oil producing nations will need to agree, including Iraq and Iran.

Domestic issues:

� Weaker than expected jobs data for January surprised the market with the unemployment rate going back up to the 6% level. A positive overall jobs trend has been helping to keep the RBA reluctant to cut rates again, therefore further jobs related disappointments may add pressure to ease rates.

� Corporate half year profits were encouraging with over 45% of companies beating expectations. While resource related profits were understandably down, banking, housing and consumer sections did well.

� In the latest release of its Board meeting minutes, the RBA noted that Australia’s services sectors continue to grow thus helping alleviate the impact of further declines in mining, but pressure in global financial markets remains a concern.

Interest rates

� Australia’s official cash rate remains at 2%, unchanged since May 2015.

� Short term interest rates remained largely unchanged during February with 3 month TDs from Australian ADIs largely in the 2.90%-3% area. Twelve month rates also stayed steady with the best of the majors in the 2.90% area.

Investment Portfolio Commentary

The City’s investment portfolio posted a return in February of 2.64%pa versus the bank bill index benchmark return of 2.26%pa. For the financial year to date, the City’s investment portfolio has exceeded the bank bill index benchmark by 0.46%pa (2.67%pa vs 2.21%pa)

Without marked-to-market influences, the City’s investment portfolio yielded 2.93%pa for the month. This is based on the actual interest rates being received on existing investments and excludes the underlying changes to the market value of the securities/deposits.

Investments with realised losses include:

Investment Purchase Price Realised value Crystallised Loss

Kalgoorlie 500,000 432,373 67,627

Bluegum 500,000 0 500,000

Deutsche Yield Curve 1,000,000 960,000 40,000

Scarborough 1,500,000 0 1,500,000

Parkes2A 500,000 0 500,000

Torquay 500,000 0 500,000

Flinders 250,000 215,000 35,000

Coolangatta 500,000 494,877 5,123

Merimbula 500,000 480,959 19,041

Esperance 500,000 348,658 151,342

Kakadu 550,000 502,708 47,292

Parkes1A 500,000 0 500,000

Oasis 1,000,000 316,637 683,363

Totals 8,300,000 3,751,212 4,548,788

Investments which matured without loss of capital include: Beech (500,000), Blaxland (500,00), Endeavour (500,000), Federation (500,000), Henley (150,000), Lawson (500,000), and Glenelg (1,000,000).

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.

Alternative InvestmentsFace Value Last

Coupon

Borrower Rating Maturity

Date

Purchase

Price

Current Value Reference

225,292 0.0000 Lehman Bros. Global Property Note D 7-Jul-15 300,000 -

225,292 0.0000 300,000 -

Current AccountsFace Value Current

Yield

Borrower Rating Current Value Reference

8,808,035 1.30% Commonwealth Bank of Australia A-1+ 8,808,035 RBA

2,024,412 1.30% Commonwealth Bank of Australia A-1+ 2,024,412 Cash At Bank

2,125,607 1.30% Commonwealth Bank of Australia A-1+ 2,125,607 Brabham

4,241,946 1.30% Commonwealth Bank of Australia A-1+ 4,241,946 Caversham

4,041,712 1.30% Commonwealth Bank of Australia A-1+ 4,041,712 Dayton

21,241,713 1.30% 21,241,713

Term DepositsFace Value Purchase

Yield

Borrower Rating Maturity

Date

Purchase

Price

Current Value Accrued

Interest

3,000,000.00 2.85% ME Bank A-2 3-Mar-16 3,000,000 3,043,804 44,038

3,000,000.00 2.85% Suncorp Bank A-1 3-Mar-16 3,000,000 3,043,788 44,038


2,000,000.00 2.90% ME Bank A-2 7-Mar-16 2,000,000 2,018,934 19,068

1,000,000.00 2.80% Commonwealth Bank of Australia A-1+ 9-Mar-16 1,000,000 1,022,491 22,400 Brabham

1,000,000.00 2.80% Commonwealth Bank of Australia A-1+ 9-Mar-16 1,000,000 1,022,491 22,400 Caversham

1,000,000.00 2.80% Commonwealth Bank of Australia A-1+ 9-Mar-16 1,000,000 1,022,491 22,400 Dayton

1,000,000.00 2.90% ME Bank A-2 15-Mar-16 1,000,000 1,009,162 9,216

3,000,000.00 3.05% National Australia Bank A-1+ 15-Mar-16 3,000,000 3,019,988 19,052 Dayton

2,000,000.00 3.05% National Australia Bank A-1+ 15-Mar-16 2,000,000 2,013,326 12,701 Brabham

2,000,000.00 2.90% ME Bank A-2 17-Mar-16 2,000,000 2,016,427 16,526

1,000,000.00 3.00% National Australia Bank A-1+ 21-Mar-16 1,000,000 1,013,667 13,233



1,000,000.00 2.90% ME Bank A-2 29-Mar-16 1,000,000 1,007,677 7,707

2,000,000.00 3.00% ME Bank A-2 29-Mar-16 2,000,000 2,011,446 11,342


1,000,000.00 2.94% ANZ Banking Group A-1+ 29-Mar-16 1,000,000 1,005,672 5,075 Brabham

1,000,000.00 2.94% ANZ Banking Group A-1+ 29-Mar-16 1,000,000 1,005,672 5,075 Caversham

1,000,000.00 2.94% ANZ Banking Group A-1+ 29-Mar-16 1,000,000 1,005,672 5,075 Dayton


3,000,000.00 3.00% ME Bank A-2 4-Apr-16 3,000,000 3,014,297 14,055

1,000,000.00 2.90% Suncorp Bank A-1 5-Apr-16 1,000,000 1,013,806 13,904

1,000,000.00 2.83% ANZ Banking Group A-1+ 5-Apr-16 1,000,000 1,009,594 8,994 Brabham

1,000,000.00 2.83% ANZ Banking Group A-1+ 5-Apr-16 1,000,000 1,009,594 8,994 Caversham

2,000,000.00 2.83% ANZ Banking Group A-1+ 5-Apr-16 2,000,000 2,019,187 17,988 Dayton

3,000,000.00 2.85% ME Bank A-2 11-Apr-16 3,000,000 3,029,062 29,281

2,000,000.00 2.82% National Australia Bank A-1+ 11-Apr-16 2,000,000 2,019,876 18,542

3,000,000.00 3.05% National Australia Bank A-1+ 11-Apr-16 3,000,000 3,017,097 14,289

2,000,000.00 2.89% ANZ Banking Group A-1+ 18-Apr-16 2,000,000 2,018,173 16,469





2,000,000.00 2.87% National Australia Bank A-1+ 3-May-16 2,000,000 2,016,537 14,468

1,000,000.00 2.82% National Australia Bank A-1+ 4-May-16 1,000,000 1,009,915 8,962 Brabham

2,000,000.00 2.82% National Australia Bank A-1+ 4-May-16 2,000,000 2,019,830 17,924 Caversham

2,000,000.00 2.82% National Australia Bank A-1+ 4-May-16 2,000,000 2,019,830 17,924 Dayton

4,000,000.00 3.02% Suncorp Bank A-1 9-May-16 4,000,000 4,030,969 30,448


2,000,000.00 2.93% Westpac Group A-1+ 9-May-16 2,000,000 2,006,021 3,532 Brabham

2,000,000.00 2.93% Westpac Group A-1+ 9-May-16 2,000,000 2,006,021 3,532 Caversham

2,000,000.00 2.93% Westpac Group A-1+ 9-May-16 2,000,000 2,006,021 3,532 Dayton



1,000,000.00 2.96% Commonwealth Bank of Australia A-1+ 23-May-16 1,000,000 1,007,813 6,325 Dayton

1,000,000.00 2.96% Commonwealth Bank of Australia A-1+ 23-May-16 1,000,000 1,007,813 6,325 Brabham

1,000,000.00 2.96% Commonwealth Bank of Australia A-1+ 23-May-16 1,000,000 1,007,813 6,325 Caversham

1,000,000.00 2.96% Commonwealth Bank of Australia A-1+ 23-May-16 1,000,000 1,007,813 6,325 Dayton

2,000,000.00 3.00% ANZ Banking Group A-1+ 23-May-16 2,000,000 2,014,505 11,342


2,000,000.00 2.90% ANZ Banking Group A-1+ 30-May-16 2,000,000 2,009,592 6,674

1,000,000.00 2.87% Suncorp Bank A-1 31-May-16 1,000,000 1,002,131 2,280

2,000,000.00 2.87% St George Bank A-1+ 6-Jun-16 2,000,000 2,011,579 8,649

3,000,000.00 2.85% St George Bank A-1+ 8-Jun-16 3,000,000 3,016,724 12,415

1,000,000.00 2.92% Westpac Group A-1+ 13-Jun-16 1,000,000 1,005,614 3,920


1,000,000.00 2.95% Suncorp Bank A-1 15-Jun-16 1,000,000 1,002,243 2,182


2,000,000.00 3.10% Suncorp Bank A-1 20-Jun-16 2,000,000 2,012,688 11,721

2,000,000.00 2.95% ME Bank A-2 27-Jun-16 2,000,000 2,002,344 1,778

2,000,000.00 2.93% St George Bank A-1+ 4-Jul-16 2,000,000 2,013,130 9,151

1,000,000.00 3.00% National Australia Bank A-1+ 4-Jul-16 1,000,000 1,003,160 904

2,000,000.00 3.00% National Australia Bank A-1+ 4-Jul-16 2,000,000 2,004,690 164

2,000,000.00 3.10% National Australia Bank A-1+ 11-Jul-16 2,000,000 2,013,848 8,493

2,000,000.00 2.93% St George Bank A-1+ 11-Jul-16 2,000,000 2,013,281 9,151

3,000,000.00 2.95% Suncorp Bank A-1 21-Jul-16 3,000,000 3,002,220 1,940

2,000,000.00 3.00% National Australia Bank A-1+ 28-Jul-16 2,000,000 2,010,521 5,425 Brabham

2,000,000.00 3.00% National Australia Bank A-1+ 28-Jul-16 2,000,000 2,010,521 5,425 Caversham

4,000,000.00 3.00% National Australia Bank A-1+ 28-Jul-16 4,000,000 4,021,041 10,849 Dayton

2,000,000.00 3.02% Suncorp Bank A-1 28-Jul-16 2,000,000 2,000,934 165

3,000,000.00 2.95% ME Bank A-2 29-Jul-16 3,000,000 3,003,000 1,940

2,000,000.00 2.95% ME Bank A-2 1-Aug-16 2,000,000 2,000,894 162

2,000,000.00 2.95% ME Bank A-2 8-Aug-16 2,000,000 2,000,920 162

140,000,000 2.95% 140,000,000 140,951,946 830,204

149,033,327 149,759,981

12,433,678 12,433,678

161,467,004 162,193,659Total Face Value

Cash Face Value

Investment Face Value Investment Current Value

Cash Current Value

Total Current Value

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 109,562 88,285 21,277 19%Sanitation Charges 20,289 18,771 1,518 7%Drainage Charges 2,524 2,457 67 3%Security Charges 1,226 1,133 93 8%Other 27 24 3 11%

133,628$ 110,670$ 22,958$ 17%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

As at 29 February 2016

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


$ M

illio

ns

2014

2015

2016

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

Current Position Rate Debtors in Arrears

outstanding $5.1m

Current Debtors outstanding $17.9m

Total Debtors $23m

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 30 Days plus by dollar value divided by periods. Table 6.4 shows debt recovery comments for the top 10 debtors over 30 days. Graph 6.5 shows sundry debtors outstanding as a percentage based on payment period.

TABLE 6.3 Total Debtors including Top Ten 30 Days plus as at 29 February 2016

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - 605,000 - - 605,000 0.00% 28.59%2 - - - 127,700 127,700 11.78% 6.03%3 - - - 116,000 116,000 10.70% 5.48%4 - - - 95,425 95,425 8.80% 4.51%5 - - - 70,000 70,000 6.46% 3.31%6 - - - 61,282 61,282 5.65% 2.90%7 - - - 38,500 38,500 3.55% 1.82%8 - - - 37,014 37,014 3.41% 1.75%9 - 1,208 27,200 7,197 35,605 0.66% 1.68%

10 - - - 35,000 35,000 3.23% 1.65%Other Debtors 227,072 109,659 61,955 495,805 894,491 45.74% 42.27%

Total 227,072 715,867 89,155 1,083,923 2,116,017 100.00% 100.00%

TABLE 6.4 Progress on Debt Recovery. Comments for top 10 over 30 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.

Legal proceedings initiated by the City.

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.

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

Statement sent to customer.

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

Payment plan in place.

In negotiations with debtor.

As % of 90 Days Plus Debtors

As % of Total Debtors

Top Ten Debtors

Statement sent to customer.

Current 11%

30 Days 34%

60 Days 4%

90 Days plus 51%

7.1

Income from Operating Activities

General Purpose Funding Grants and Other Contributions

20% Unfavourable Variance of $1,481,017

Governance 417% Favourable Variance of $444,164

Health 57% Favourable Variance of $103,606

Economic Services 10% Unfavourable Variance of $129,508

Expenditure from Operating Activities

Governance 24% Favourable Variance of $2,092,297

Housing 19% Favourable Variance of $13,168

Building Services application fees are the main contributor of this variance, being $123k below target. The unfavourable result is an indication of the slowing housing market in Perth.

The favourable variance is attributed to underspending in: Subscriptions and Publications $243k, Conferences/Training $120k and Depreciation $362k. Projects Studies and Surveys also contributed $347k to the variance; operating jobs within the following cost centres showed significant below budget spend: Training and Development $150k, Marketing $78k, General Administration $67k and Occupational Health & Safety $37k.

Invoicing timing differences for the Elvire Chalets maintenance costs is the main cause of this variance. Actuals are expected to align to budget as the year progresses.

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

$2.6m or 52% of the 2015/16 Financial Assistance Grant was received and recognised in the prior financial year. Consequently, grant payments for the current financial year have been reduced to reflect this advance payment, contributing to the variation between original budget and actuals.

The City received $320k from the LGIS, $202 relates to dividend reimbursements and $118k to prior year insurance rebates. The amount received was not originally budgeted for, contributing to the positive variance.

The positive result is partly due to timing differences in the payment of Health and Safety Fees and partly due to the receipt of more revenue than originally budgeted. Following the budget review process, a budget adjustment to recognise this additional revenue will be effected.

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Community Amenities 11% Favourable Variance of $1,624,214

Transport 11% Favourable Variance of $2,725,620

Economic Services 20% Favourable Variance of $785,172

Non Cash Items

Provisions and Other Accruals 10% Unfavourable Variance of $107,967

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 10% Favourable Variance of $1,164,533

Developer Contributions Plans 34% Unfavourable Variance of $3,109,617

Purchase of Plant and Equipment 16% Favourable Variance of $3,706,136

Purchase or Construction of Infrastructure 32% Favourable Variance of $13,812,665

Other Non Operating Items

Transfer to Reserves 14% Favourable Variance of $3,868,370The favourable variance of $3.8m in transfer to reserves is mostly attributable to Developers Contributions Plans (DCP), which have acquired less contributions from the developers than expected.

Bulk Collection and Refuse Collection Contracts costs were below budget by $231k and $625k respectively mainly due to invoicing timing differences. Employee Costs were also under by $279k , adding to the variance.

Parks and Roads construction works were the main contributors to the variance being $6.4m and $7.1m under budget respectively. Within Parks, Ellenbrook District Open Space South was underspent by $1.6m and Paradise Quays by $521k. In Roads, Hazelmere Industrial Infrastructure Road showed a below budget spend of $2.9m and Gnangara Road (Alexander Drive to Beechboro) $1.9m.

Timing differences were the main reason for Electricity and Contracts which were below budget by $591k and $387k respectively. The drop in crude oil prices has contributed to underspending of $345k for Fuel & Oil. Employee Costs also expended less than expected by $728k as a result of vacant positions that are yet to be filled.

Projects Studies & Surveys accounted for 58% of this variance with the following jobs displaying the most significant variances: Community Plans $66k, Urban Design/Heritage Working Paper $47k, Commercial Centre Plan $57k and Bellevue Land Use Planning $20k. The variance is expected to reduce over time as $232k has been accounted for as committed costs for these projects. Employee Costs were also less than budget by $297k due to some positions being vacant for part of this financial year.

The $107k unfavourable variance relates to long service leave plus the movement in non-current employee provisions. Actuals are expected to align to budget by year end.

A Roads to Recovery grant of $3m was received during the month. $1.1m of this was not anticipated and was the main reason for the above budget result. This extra revenue will be allocated to Great Northern Highway/Bishop Road and a budget adjustment to reflect this will be processed.

In February, $117k was collected for Developers Contributions. Fluctuations between budget and actual are expected due to the high level of uncertainty surrounding Developers Contributions.

Building Capital Works plus Plant & Equipment contributed $3.5m and $2.8m to this favourable variance. This was largely offset by above budget spend for Land purchases of $1.4m and $1.1 for Building Purchases. The variance for Land purchases is due to timing differences and should reduce over time. A budget adjustment is pending for Building purchases.

7.3

Other Funding Sources

Transfer from Reserves 40% Unfavourable Variance of $10,075,934

Proceeds of Trust funds 100% Unfavourable Variance of $463,493

Profit on Impairment of Investments 100% Favourable Variance of $844,869

Proceeds from Sale of Assets 68% Favourable Variance of $1,178,388

Self Supporting Loans Repayments 32% Unfavourable Variance of $22,353

Proceeds from New Loans 36% Unfavourable Variance of $3,637,526

New Self Supporting Loan Advances 100% Favourable Variance of $133,333

Movement in Deferred Rates (Non-Current) 40% Unfavourable Variance of $49,565

Opening Net Current Assets July 1 B/Fwd. 82% Favourable Variance of $8,995,094

As an outcome of the tough economic climate, pensioners are finding it difficult to pay their rates causing them to defer payments. The unfavourable variance is continuing to reduce over the course of the financial year and actuals are expected to align closer to budget by year end.

The Opening Net Current Asset position is significantly greater than budget. The variance is mostly reflective of the lower than anticipated capital expenditure in the prior financial year. Included in the variance is $2.6m relating to the current year's Financial Assistance Grant which was received in advance at the end of the 2014/15 financial year.

The $845k favourable variance relates to part payments from investment legal proceedings that were not originally scheduled for receipt.

At the start of the financial year the City sold properties which resulted in a favourable position for proceeds from sale of assets. Actuals are estimated to level out closer to year end.

The 32% unfavourable variance in self supporting loan repayments is a result of timing. As per the self supporting loan contracts, two of the loans are scheduled to be paid biannually while the other is quarterly. Actuals are anticipated to fall in line with budget by year end.

There is a timing lag in the City drawing down on new loans which has resulted in the 36% unfavourable variance. Historically the City has taken out new loans within the second half of the year. It is anticipated that actuals will align to the revised forecast budget in the coming months.

The $133k favourable variance for new self supporting loans is due to no new loans being advanced.

Expenditure to allocated jobs are less than originally budgeted year to date. It is expected that transfers out will increase towards the end of the year.

Projects associated with the Trust have not had any expenditure to date which has caused a 100% unfavourable variance in the proceeds of Trust Funds.

7.4

Original Budget2015/16

Revised Budget2015/16

YTD ORIGINALBUDGET

@ 29 FEBRUARY 2016


2016

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

110,516,610 110,516,610 Rates 110,350,733 109,819,011 (531,723)10,352,230 10,352,230 Grants and Other Contributions 7,590,140 6,109,123 (1,481,017) U (20%)

120,868,840 120,868,840 Total General Purpose Funding 117,940,873 115,928,134 (2,012,740)173,830 173,830 Governance 106,552 550,716 444,164 F 417%

2,271,040 2,271,040 Law, Order and Public Safety 2,007,198 1,936,075 (71,123)273,000 277,080 Health 182,000 285,606 103,606 F 57%

4,370,990 4,635,950 Education and Welfare 3,428,153 3,411,177 (16,976)60,000 60,000 Housing 40,000 43,461 3,461

20,099,930 20,114,970 Community Amenities 19,633,287 19,974,087 340,8006,765,350 6,857,440 Recreation and Culture 4,622,530 4,872,951 250,4211,571,780 1,571,780 Transport 1,230,017 1,247,711 17,6952,027,000 2,027,000 Economic Services 1,351,333 1,221,826 (129,508) U (10%)2,632,270 2,632,270 Other Property and Services 1,754,847 1,795,161 40,314

161,114,030 161,490,200 Subtotal Income 152,296,790 151,266,904 (1,029,886)

Expenditure(2,468,195) (2,468,195) General Purpose Funding (1,470,635) (1,473,208) (2,573)

(13,162,778) (13,055,978) Governance (8,875,046) (6,782,749) 2,092,297 F (24%)(5,855,057) (5,851,677) Law, Order and Public Safety (3,906,194) (3,622,836) 283,358(1,676,737) (1,672,647) Health (1,117,825) (1,083,441) 34,384(8,889,149) (9,162,879) Education and Welfare (5,959,112) (5,450,961) 508,151

(101,796) (101,796) Housing (67,864) (54,696) 13,168 F (19%)(23,377,079) (23,372,239) Community Amenities (15,395,143) (13,770,929) 1,624,214 F (11%)(45,197,758) (45,324,158) Recreation and Culture (29,985,846) (30,196,700) (210,854)(36,373,731) (36,477,341) Transport (24,011,903) (21,286,283) 2,725,620 F (11%)

(5,888,414) (5,783,184) Economic Services (3,925,609) (3,140,437) 785,172 F (20%)(2,879,533) (2,937,183) Other Property and Services (1,903,464) (1,818,857) 84,606

(145,870,227) (146,207,277) Subtotal Expenditure (96,618,642) (88,681,098) 7,937,544

15,243,803 15,282,923 Net Operating Profit / (Loss) 55,678,148 62,585,806 6,907,658

ADD NON CASH ITEMS33,256,980 33,256,980 Depreciation 22,171,320 22,779,422 608,102

1,559,242 1,559,242 Provisions and Other Accruals 1,039,495 1,147,462 107,967 U 10%

34,816,222 34,816,222 Subtotal Non Cash Items 23,210,815 23,926,884 716,069

50,060,025 50,099,145 Net Operating Surplus / (Deficit) 78,888,963 86,512,690 7,623,727

LESS CAPITAL INCOME & EXPENDITURE16,255,830 16,272,810 Capital Grants, Subsidies & Contributions 11,607,553 12,772,086 1,164,533 F 10%13,620,580 13,620,580 Developers Contributions: Cash contribution 9,080,387 5,970,769 (3,109,617) U (34%)11,861,520 11,861,520 Developers Contributions: In Kind Contribution - - -30,138,230 30,138,230 In Kind Developer Contributions: Other - - -

(34,043,500) (33,589,260) Purchase of Plant and Equipment (22,695,667) (18,989,531) 3,706,136 F (16%)(41,999,750) (41,999,750) Assets Contributed by Developers - - -(64,436,700) (62,232,640) Purchase or Construction of Infrastructure (42,957,800) (29,145,135) 13,812,665 F (32%)(68,603,790) (65,928,510) Subtotal Capital Income and Expenditure (44,965,527) (29,391,810) 15,573,716

LESS OTHER NON OPERATING ITEMS(5,298,973) (5,298,973) Loan Principal Repayments (3,532,649) (3,315,346) 217,303

(42,106,467) (42,612,587) Transfer to Reserves (28,070,978) (24,202,608) 3,868,370 F (14%)(47,405,440) (47,911,560) Subtotal Other Non Operating Items (31,603,627) (27,517,954) 4,085,673

OTHER FUNDING SOURCES37,461,950 38,774,230 Transfer from Reserves 24,974,633 14,898,699 (10,075,934) U (40%)

695,240 695,240 Proceeds of Trust funds 463,493 - (463,493) U (100%)- 544,730 Profit on Impairment of Investments - 844,869 844,869 F 100%

2,593,080 3,893,080 Proceeds from Sale of Assets 1,728,720 2,907,108 1,178,388 F 68%103,853 103,853 Self Supporting Loans Repayments 69,235 46,883 (22,353) U (32%)

14,979,220 13,844,060 Proceeds from New Loans 9,986,147 6,348,621 (3,637,526) U (36%)(200,000) (200,000) New Self Supporting Loan Advance (133,333) - 133,333 F (100%)(183,727) (183,727) Movement in Deferred Rates (Non current) (122,485) (172,049) (49,565) U 40%

10,938,446 10,938,446 Opening Net Current Assets July 1 B/Fwd 10,938,446 19,933,540 8,995,094 F 82%66,388,062 68,409,912 Subtotal Other Funding Sources 47,904,857 44,807,670 (3,097,187)

438,857 4,668,987 CLOSING NET CURRENT ASSETS YTD 50,224,666 74,410,598 24,185,932

CITY OF SWANSTATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @29 FEBRUARY

2016ACTUAL @JUNE 2015

ACTUAL @FEBRUARY 2015

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 63,251,465 29,406,267 56,857,085Restricted Cash, Cash Equivalents & Investments 98,396,921 90,295,220 79,110,717Rates Debtors Current 25,109,729 6,089,832 23,407,825Trade and Other Receivables 3,312,627 3,693,596 4,904,950Prepayments 279,484 416,115 753,452Inventory 30,514 68,357 145,048Total Current Assets 190,380,739 129,969,387 165,179,077

Less Current LiabilitiesIncome in Advance (1,024,303) - (1,067,239) Accounts Payable (10,611,565) (13,176,073) (13,555,847) Provisions - Employee Entitlements (11,458,179) (11,459,234) (10,414,552) Loan Repayments (2,114,726) (4,640,232) (1,201,322) Total Current Liabilities (25,208,772) (29,275,539) (26,238,960)

Net Current Assets 165,171,967 100,693,848 138,940,117

Add Back Restricted LiabilitiesLSL Reserve 5,569,229 4,578,367 5,632,065 Loan Repayments 2,114,726 4,640,232 1,201,322 Self Supporting Loan Contributions (48,403) (95,286) (45,427)

Adjusted Net Assets 172,807,518 109,817,161 145,728,077

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (93,224,307) (83,920,397) (73,573,498) Monies Held In Trust (5,172,614) (5,963,224) (5,537,217)

Closing Funds 74,410,598 19,933,540 66,617,361

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

CITY OF SWANNET CURRENT FUNDING POSITION

AS AT 29 FEBRUARY 2016

0

20

40

60

80

100

120

140

160

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

Mill

ion

$

Liquidity Over Three Years

2013/142014/152015/16

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 Reports 8.0 Other Statutory Reports

8.2

ORIGINALBUDGET2015/16

REVISEDBUDGET2015/16 CASH FLOWS FROM OPERATING ACTIVITIES

YTD ACTUAL@ 29 FEBRUARY 2016

ACTUAL 2014/15

Receipts109,873,258 109,873,258 Rates Revenue 91,651,368 102,036,375

1,120,000 1,120,000 Service Charges 1,179,786 1,140,91733,627,090 33,787,290 Fees & Charges 29,442,683 35,100,739

4,834,610 4,834,610 Interest Earnings 3,322,010 5,483,12910,193,970 10,382,810 Operating Grants, Subsidies & Contributions 5,963,950 12,924,140

657,264 657,264 All other revenue 200,214 1,435,9944,170,495 4,170,495 GST Inflow 3,305,741 3,794,041

164,476,687 164,825,727 Total Receipts 135,065,752 161,915,336Payments

(29,882,310) (29,882,310) Materials & Contracts (17,870,039) (24,907,603)(6,587,207) (6,587,207) Utility Charges (3,302,210) (6,498,667)

(70,678,696) (70,678,696) Employee Costs (43,345,721) (66,086,315)(674,660) (674,660) Insurance Payments (963,411) (660,334)

(2,083,330) (2,083,330) Interest Payments (1,082,452) (1,380,523)(1,832,368) (1,832,368) Other Payments (1,005,016) (1,370,872)(4,570,494) (4,570,494) GST Outflow (2,990,327) (3,962,410)

(116,309,065) (116,309,065) Total Payments (70,559,176) (104,866,724)48,167,621 48,516,661 Net cash provided / (used) by operating activities 64,506,576 57,048,611

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(34,043,500) (33,589,260) Purchase / Construction of capital assets (18,989,531) (41,417,143)(64,436,700) (62,232,640) Purchase / Development of infrastructure (29,145,135) (38,621,721)

- - Proceeds from Disposal of Investments 844,869 1,054,171(98,480,200) (95,821,900) (47,289,797) (78,984,692)

Receipts16,255,830 16,272,810 Capital Grants, Subsidies & Contributions 12,772,086 11,654,90313,620,580 13,620,580 Developers Contributions 5,970,769 15,504,066

2,593,080 3,893,080 Proceeds from Sale of Fixed Assets 2,907,108 1,009,012695,240 695,240 Transfer from Trust Funds - -

33,164,730 34,481,710 21,649,963 28,167,982(65,315,470) (61,340,190) Net cash provided / (used) by investing activities (25,639,834) (50,816,712)

CASH FLOWS FROM FINANCING ACTIVITIES14,979,220 13,844,060 Proceeds from Loan Borrowings 6,348,621 17,048,707(5,298,973) (5,298,973) Repayment of Borrowings (3,315,346) (3,324,889)

103,853 103,853 Contributions - Self supporting loans 46,883 89,393- - ESL Movements - 279,428

(200,000) (200,000) Other Loan Repayments Received - -9,584,100 8,448,940 Net cash provided / (used) by financing activities 3,080,158 14,092,639

(7,563,749) (4,374,589) Net increase / (decrease) in cash held 41,946,900 20,324,538104,798,887 104,798,887 Cash at the beginning of the year 119,701,485 99,376,946

97,235,138 100,424,298 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 161,648,385 119,701,485

CITY OF SWANSTATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2015/16

REVISEDBUDGET2015/16 OPERATING REVENUE

YTD ORIGINALBUDGET

@ 29 FEBRUARY 2016


20161,120,000 1,120,000 Service Charges 1,120,000 1,179,786

33,627,090 33,787,290 Fees & Charges 28,932,827 29,442,68310,193,970 10,382,810 Operating Grants, Subsidies & Contributions 7,877,346 5,963,950

2,529,920 2,529,920 Specified Area Rates 2,529,920 2,503,0194,834,610 4,834,610 Interest Earnings 3,492,719 3,870,650

821,750 848,880 Other Revenue 523,165 990,82453,127,340 53,503,510 Subtotal - operating revenue 44,475,977 43,950,912

OPERATING EXPENSE(71,153,960) (71,125,430) Employee Costs (47,076,641) (43,939,629)(30,303,249) (30,668,829) Materials & Contracts (20,131,900) (15,608,956)

(6,565,680) (6,565,680) Utility Charges (4,097,502) (3,302,210)(33,256,980) (33,256,980) Depreciation on Non-Current Assets (22,171,320) (22,779,424)

(2,083,330) (2,083,330) Interest Expenses (1,065,936) (1,082,452)(674,660) (674,660) Insurance Expenses (918,067) (963,411)

(1,832,368) (1,832,368) Other Expenses (1,157,276) (1,005,016)(145,870,227) (146,207,277) Subtotal - operating expense (96,618,642) (88,681,099)

(92,742,887) (92,703,767) Net cash from / (Non) operating activities (52,142,665) (44,730,186)Non Cash Items

(183,727) (183,727) Movement in Deferred Rates (Non Current) (122,485) (172,049)1,559,242 1,559,242 Movement in Employee Provisions and Adjustments 1,039,495 1,147,462

33,256,980 33,256,980 Write Back Depreciation 22,171,320 22,779,42434,632,495 34,632,495 Total 23,088,330 23,754,837

Capital Works(64,436,700) (62,232,640) Purchase / Construction of infrastructure assets (42,957,800) (29,145,135)(34,043,500) (33,589,260) Purchase / Construction of other capital assets (22,695,667) (18,989,531)(98,480,200) (95,821,900) Total Capital Outlays (65,653,467) (48,134,666)

2,593,080 3,893,080 Proceeds from Sale of Fixed Assets 1,728,720 2,907,10813,620,580 13,620,580 Developers contributions 9,080,387 5,970,76916,255,830 16,272,810 Capital Grants, Subsidies & Contributions 11,607,553 12,772,086

(66,010,710) (62,035,430) Net Capital Outlays (43,236,807) (26,484,704)Debt Management

14,979,220 13,844,060 Proceeds from New Loans 9,986,147 6,348,621(200,000) (200,000) New Advances: Self Supporting Loans (133,333) -

(5,298,973) (5,298,973) Repayment of Loans (3,532,649) (3,315,346)103,853 103,853 Contributions to Debt 69,235 46,883

9,584,100 8,448,940 Total 6,389,400 3,080,158Other Funding Transactions

- 544,730 Profit/Recovery Impairment of Investments - 844,869695,240 695,240 Transfer from Trust Fund 463,493 -

37,461,950 38,774,230 Transfers from reserves 24,974,633 14,898,699(42,106,467) (42,612,587) Transfers to reserves (28,070,978) (24,202,608)

(3,949,277) (2,598,387) Net Movement in Reserves (2,632,851) (8,459,041)

10,938,446 10,938,446 Opening Funds 1 July - Net Current Assets 10,938,446 19,933,540(438,857) (4,668,987) Less Closing Funds 30 June - Net Current Assets (50,224,666) (74,410,598)

10,499,589 6,269,459 Net Current Assets (Less Restricted) (39,286,220) (54,477,058)107,986,690 107,986,690 SHORTFALL TO BE MADE UP FROM RATES 107,820,813 107,315,993


CITY OF SWANRATE SETTING STATEMENT

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