KEY ISSUES · 2016. 1. 29. · Ordinary Meeting of Council 05 March 2014 Page 1 5.5 FINANCIAL...

Ordinary Meeting of Council

05 March 2014

5.5 FINANCIAL MANAGEMENT REPORT - JANUARY 2014

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 January 2014.

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 2013/2014 is


05 March 2014

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 January 2014 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

The actual revenue from ordinary activities for the year to date is $123.8m; this is less

than budget by $266k year to date.

Expenditure from ordinary activities for the year to date is $70.5m; this is less than

budget by $2.9m year to date.

The net result is currently $72.7m actual profit in comparison to $75.8m budget.

2. Statement of Financial Position

Current Assets of $152m for January 2014 are significantly higher than at year end

2012/13 which can be attributed to the rates being raised.

Current Liabilities are $22.8m year to date compared to $25.4m at year end 2012/13.

The main contributors are the decrease in Short Term Borrowings and Provisions.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of January 2014 with a balance

of $127m. Cash and Cash Equivalents at the end of January 2013 reflected a balance of

$89m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending January 2014.


05 March 2014

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 31 January 2014 in

accordance with regulation 34(1) of the Local Government (Financial

Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

31 January 2014

Contents

1.0 Financial Summary 1.0

2.0 Statements of Comprehensive Income 2.1 - 2.2 (With Variance Analysis Commentary)

By Nature & Type 2.3 By Program 2.4

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 - 4.6 5.0 Cash and Investments 5.1 Investment Report 5.2 - 5.3 6.0 Debtors Rates Debtors 6.1 Sundry Debtors 6.2 7.0 Statement of Financial Activity 7.1 - 7.2

(With Variance Analysis Commentary) Statement of Financial Activity 7.3 Net Current Funding Position 7.4

Liquidity Over Three Years 7.4

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 January 2014

2.0 Statement of Comprehensive Income (Performance)Year to 31st January 2014 Annual Annual

Budget Bgt Var$000's %

Revenue 123,857 124,123 0% 133,877 93%

Expenses (70,491) (73,392) -4% (125,767) 56%

Profit/Loss 53,366 50,731 5% 8,110 658%

Non-operating 19,389 25,136 -30% 71,631 27%

Net Result 72,755 75,867 -4% 79,741 91%

3.0 Statement of Financial Position2013 2013 2014June December January$000's $000's $000's

Current

Assets 86,641 150,774 152,167

Liabilities 25,424 21,264 22,846

Non Current

Assets 1,033,460 1,040,202 1,041,036

Liabilities 34,386 36,106 36,201

Net Assets 1,060,291 1,133,606 1,134,156

4.0 Capital PaymentsYear to 31st January 2014 Annual Annual

Act/Com Budget Var Budget Bgt Var$000's $000's % $000's %

Buildings 8,125 11,040 74% 18,926 43%

Drainage 1,059 1,435 74% 2,460 43%

Footpaths 375 814 46% 1,396 27%

Parks 2,874 6,920 42% 11,862 24%

Roads 8,682 14,628 59% 25,077 35%

P&E, Other 10,618 8,408 126% 14,413 74%

Total 31,733 43,245 73% 74,134 43%

5.0 Cash and Investments

Volume heldDecember January Ave Interest

$000's $000's %

Cash 21,256 22,262 2.0%

24 hr Call 6,446 12,986 2.5%Cash Mgt 1,284 1,289 1.7%

Floating Rate 1,792 361 4.3%Term Deposits 87,000 91,000 3.4%

Total 117,778 127,898 2.8%

6.0 Debtors December January Change

$000's $000's %Trade Debtors

Current 793 446 -44%> 30 Days 255 599 135%> 60 Days 93 170 83%> 90 Days 776 809 4%

Total Trade 1,917 2,024 6%Rates Debtors

Rates Debtors 27,434 20,470 -25%Other Debtors 3,468 1,559 -55%Total Debtors 32,819 24,053 -27%

Actual '$000'sBudget '$000's

Variance%

At the end of January overall performance was 96% of ytd target. Revenue was on par with ytd budget. Fees and Charges and Interest Earnings were $1.9m above budget. Rates Revenue was $1.9m below budget due to timing of adjustments for rates in advance.

Operating expenses were 4% less than expected with Materials and Contracts ($972k), Utility Charges ($577k), and Depreciation ($761k) contributing 80% to the variance.

Non-Operating Expenses were 30% below budget. The main cause of the variance was Developers Contributions below ytd target by $6.3m.

The City's current investment holdings have good credit diversification, with 98% spread among the top three credit rating categories.

The Reserve Bank of Australia (RBA) kept the official rate at 2.5%.

98% of current holdings are considered to be sound with little risk of capital loss.

ANZ Climate Change Trust matured in January 2014 at full capital price of $1m.

Cash and Cash equivalents increased by $11.5m due to a decrease in Trade and Other Receivables and Capital Grants received as well as the sale of two City of Swan properties.

The proceeds of a new loan of $200k were received for the construction of the Aveley Community Centre.

Investments reduced by $1.4m mainly due to the reduction on the ANZ Climate portfolio.

Current ratio has marginally decreased as a result of the increase in Trades and Other Payables.

Overall Capital Expenditure was $31.7m. $23.6m was actual and $8.1m was committed costs.

Progress at Reid highway resulted in expenditure of $742k in January.

At the end of the month Buildings and Drainage were at 43% spend of their annual budget, while Parks was at 24%, and Plant and Equipment Other was at 74%.

In January Capital revenue recorded was: Gnangara Road $5.6m and Marangaroo Drive $44k. Swan Riverside Park received an additional $137k relating to prior years.

3.41

4.46 4.34

1.00 1.00 1.00

-

1.00

2.00

3.00

4.00

5.00

June 13 Dec-13 Jan-14

C.Assets C.Liabilities

0

200

400

600

800

1,000

Current > 30Days

> 60Days

> 90Days

$000

's

Trade Debtors

December January

AA+ to AA- 68%

A+ to A-

32% B

Range 0%

Total Trade Debtors increased by 6% due to a number of invoices being raised during the month. A large invoice has moved into the 30 days category causing an increase of 135%. The 83% increase in the 60 Day debtors was due to a large invoice that has moved from the 30 day category and remains unpaid.

Rates Debtors with Emergency Services Levy excluded, decreased by $7m. The large decrease was a result of instalment and interim notices that were due on the 6th of January 2014.

2.1

REVENUE FROM ORDINARY ACTIVITIES

Interest Earnings 24% Favourable Variance of $573,805

Other Revenue 37% Unfavourable Variance of $356,731

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.

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

The City continues to attract higher than anticipated interest earnings due to higher than budgeted cash holdings. A budget adjustment is pending.

Recycling Revenue from the City of Wanneroo for November, December and January has not been received as anticipated. It is expected that actual will align with budget over time.

2.0 Statements of Comprehensive Income 2.0 Statements of Comprehensive Income

2.2

EXPENSES FROM ORDINARY ACTIVITIES

Utility Charges 19% Favourable Variance of $571,974

Insurance Expenses 14% Unfavourable Variance of $125,417

Other Expenses 16% Favourable Variance of $154,648

NON-ORDINARY ACTIVITIES

Developers Contribution: Cash24% Unfavourable Variance of $1,656,961

Developers Contribution: In Kind80% Unfavourable Variance of $4,633,235

Profit / Loss on Disposal of Assets 42% Favourable Variance of $570,685

Profit / Loss on Impairment of Investments 876% Favourable Variance of $235,134

Insurance Expenses reflect an unfavourable variance of 14% due to timing issues. This variance is expected to reduce as the year progresses.

This favourable variance is a mainly due to Elections spending only 5% of ytd budget of $101k and Members of Council only 29% of $102k ytd budget.

During the month $211k was received in Brabham. Determining the timing of Developers Contributions is complexand therefore variances are expected from time to time.

There were no In Kind Developers Contributions recognised in January. Developers Contributions are subject toseveral volatile factors. As such fluctuations of actual to budget are common.

The favourable variance is attributed to the sale of two City land assets.

In January an unbudgeted part payment of $200k was received from Lehman Brothers proceedings and was themain cause of this favourable variance. The proceeds will be allocated to the Strategic Land Reserve.

Electricity costs were $579k below budget and were the main cause of this favourable variance. Timing issuescontinue to be the main reason for the underspend.

2.3

Original Budget

2013/14

Revised Budget

2013/14

YTD CURRENTREVISED BUDGET@JANUARY 2014

YTD ACTUAL@ JANUARY 2014

$ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities92,803,400 92,803,400 Rates Revenue 92,420,959 90,539,081 (1,881,879) - -

976,250 976,250 Service Charges 976,250 1,024,819 48,569 - -27,354,530 27,404,530 Fees & Charges 22,364,661 23,687,532 1,322,871 - -

7,280,780 7,332,430 Operating Grants, Subsidies & 4,992,988 5,019,830 26,841 - -3,756,000 3,756,000 Interest Earnings 2,413,392 2,987,196 573,805 F 24%1,576,720 1,604,250 Other Revenue 955,188 598,457 (356,731) U (37%)

133,747,680 133,876,860 Sub-Total Ordinary Revenue 124,123,439 123,856,915 (266,523)

Expenses from Ordinary Activities(60,328,850) (60,373,170) Employee Costs (34,560,411) (33,996,048) 564,363 - -(26,959,580) (26,983,550) Materials & Contracts (16,008,195) (15,031,347) 976,849 - -

(5,448,530) (5,448,530) Utility Charges (3,012,175) (2,440,201) 571,974 F (19%)(29,293,080) (29,293,080) Depreciation on Non-Current Assets (17,087,630) (16,326,141) 761,489 - -

(1,654,990) (1,654,990) Interest Expenses (880,607) (883,616) (3,008) - -(379,260) (379,260) Insurance Expenses (890,392) (1,015,809) (125,417) U 14%

(1,624,100) (1,634,600) Other Expenses (952,538) (797,890) 154,648 F (16%)

(125,688,390) (125,767,180) Sub-Total Ordinary Expenses (73,391,949) (70,491,051) 2,900,898

8,059,290 8,109,680 Ordinary Activities 50,731,490 53,365,864 2,634,374

Add Non-Ordinary Activities

14,917,570 17,054,070Non-Operating Grants, Subsidies & Contributions 11,078,902 10,816,760 (262,143) - -

24,748,100 24,748,100Non-Operating Gifted Assets from Developers: Other - - - - -

11,769,600 11,769,600 Developer Contribution Plans: Cash 6,865,600 5,208,639 (1,656,961) U (24%)10,727,860 10,677,860 Developer Contribution Plans: In Kind 5,801,560 1,168,325 (4,633,235) U (80%)

2,335,760 2,335,760 Profit / (Loss) on Disposal of Assets 1,362,527 1,933,211 570,685 F 42%

46,000 46,000Profit / (Loss) on Impairment of Investments 26,833 261,967 235,134 F 876%

5,000,000 5,000,000Unrealised Gain from Other Financial Assets: EMRC - - - -

77,604,180 79,741,070 Net Result 75,866,911 72,754,767 (3,112,144)

Financial Ratios 2011 2012 2013 Current Month

OPERATING SURPLUS RATIO 4.61% 11.02% 9.35%

DEBT SERVICE COVER RATIO 17.76 18.64 11.12

OWN SOURCE REVENUE COVERAGE RATIO 0.96 1.02 1.01

CITY OF SWANSTATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE

FOR THE PERIOD 1 JULY 2013 to 31 JANUARY 2014

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.

44.91%

21.44

1.69

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.

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.

2.4

OriginalBudget

2013/14

RevisedBudget

2013/14

YTD CURRENTREVISED BUDGET@ JANUARY 2014 YTD ACTUAL

@JANUARY 2014 $ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities99,112,650 99,112,650 General Purpose Funding 96,206,939 94,985,412 (1,221,527) - -

204,120 257,890 Governance 179,912 213,097 33,185 F 18%1,985,520 1,985,520 Law Order & Public Safety 1,757,931 1,851,080 93,149 - -

256,000 256,000 Health 149,333 122,921 (26,413) U (18%)4,095,790 4,145,440 Education & Welfare 3,033,603 3,218,467 184,863 - -

50,000 50,000 Housing 29,167 40,789 11,622 F 40%16,850,270 16,852,270 Community Amenities 15,930,082 16,563,097 633,015 - -

6,303,010 6,326,770 Recreation & Culture 3,811,551 3,610,906 (200,645) - -1,344,280 1,344,280 Transport 956,397 994,752 38,356 - -1,742,400 1,742,400 Economic Services 1,016,400 1,206,916 190,516 F 19%1,803,640 1,803,640 Other Property & Services 1,052,123 1,049,478 (2,645) - -

133,747,680 133,876,860 Sub-Total Revenue 124,123,439 123,856,915 (266,523)

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,453,121) (2,453,121) General Purpose Funding (1,266,307) (1,145,368) 120,938 F 10%(11,432,217) (11,223,727) Governance (6,447,132) (5,613,638) 833,494 F 13%

(5,334,845) (5,369,185) Law Order & Public Safety (3,152,191) (2,970,250) 181,941 - -(1,520,491) (1,530,741) Health (897,051) (848,077) 48,973 - -(8,278,897) (8,529,047) Education & Welfare (5,118,043) (4,521,553) 596,490 F 12%

(142,119) (142,119) Housing (82,903) (71,425) 11,478 F 14%(19,112,532) (19,275,452) Community Amenities (11,295,423) (11,070,757) 224,667 - -(37,861,588) (37,665,548) Recreation & Culture (22,127,517) (21,705,088) 422,429 - -(30,819,655) (30,808,545) Transport (17,960,218) (17,205,954) 754,264 - -

(5,312,020) (5,320,390) Economic Services (3,106,655) (2,217,713) 888,942 F 29%(1,765,915) (1,794,315) Other Property & Services (1,057,902) (2,237,613) (1,179,711) U (112%)

(124,033,400) (124,112,190) Sub-Total Non-Borrowing Expense (72,511,341) (69,607,435) 2,903,906

Borrowing Costs Expense(202,440) (202,440) Governance (123,889) (126,734) (2,846) - -(541,820) (541,820) Recreation & Culture (234,499) (234,611) (112) - -(343,510) (343,510) Transport (189,300) (189,292) 8 - -(567,220) (567,220) Other Property & Services (332,920) (332,979) (59) - -

(1,654,990) (1,654,990) Sub-Total Borrowing Costs (880,607) (883,616) (3,008)

8,059,290 8,109,680 Net Operating Result 50,731,490 53,365,864 2,634,374 - -

Non-Operating Grants, Subsidies & Contributions

22,497,460 22,447,460 Governance 12,667,160 6,376,964 (6,290,196) U (50%)410,660 410,660 Education & Welfare 239,552 206,504 (33,048) U (14%)

9,970,030 10,095,530 Recreation & Culture 2,884,684 1,232,250 (1,652,434) U (57%)29,284,980 31,295,980 Transport 7,954,667 9,378,005 1,423,339 F 18%62,163,130 64,249,630 23,746,062 17,193,723 (6,552,339)

Profit/(Loss) on Disposal of Assets1,849,840 1,849,840 Recreation & Culture 1,079,073 1,753,632 674,559 F 63%

- - Governance - 8,942 8,942 - -485,920 485,920 Transport 283,453 170,637 (112,816) U (40%)

2,335,760 2,335,760 1,362,527 1,933,211 570,685Profit/(Loss) on Impairment of Investments

46,000 46,000 General Purpose Funding 26,833 261,967 235,134 F 876%Unrealised Gain from Other Financial Assets: EMRC

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

77,604,180 79,741,070 Net Result 75,866,911 72,754,767 (3,112,145) - -

CITY OF SWANSTATEMENT OF COMPREHENSIVE INCOME BY PROGRAM


3.1

Description

2. Statement of Change in Equity

Financial Ratios 2011 2012 2013 Current MonthCURRENT RATIO 0.67 0.73 1.19 4.34

QUICK RATIO 0.57 0.72 1.18 4.34

UNTIED CASH TO TOTAL CREDITORS 0.09 2.53 3.96 13.84

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 fromtotal assets.

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 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.

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @31 JANUARY 2014

ACTUAL @30 JUNE 2013

Current AssetsCash and cash equivalents 127,179,037 77,739,200Investments 361,269 1,791,679Trade and other receivables 24,052,837 6,696,696Other Assets 499,951 273,451Inventories 74,005 139,428

Total: Current Assets 152,167,098 86,640,454

Non Current AssetsTrade and other receivables 2,163,576 2,228,421Property, plant and equipment 1,006,157,662 998,516,796Other Financial Assets 32,715,166 32,715,166

Total: Non Current Assets 1,041,036,404 1,033,460,383

Total Assets 1,193,203,501 1,120,100,837

Current LiabilitiesShort term borrowings 1,391,115 3,795,791Trade and other payables 12,098,459 12,531,933Income in advance 1,233,722 -Provisions 8,122,733 9,096,450

Total: Current Liabilities 22,846,030 25,424,174

Non Current LiabilitiesLong term borrowings 26,980,961 26,784,943Trade and other payables 7,199,831 6,230,432Provisions 2,019,880 1,370,306

Total: Non Current Liabilities 36,200,673 34,385,680

Total Liabilities 59,046,703 59,809,855

NET ASSETS 1,134,156,799 1,060,290,982

Equity AccountsAccumulated Surplus 705,844,861 636,504,887Asset Revaluation Reserves 372,985,229 371,874,179Cash Backed Reserves 55,326,709 51,911,917

TOTAL EQUITY 1,134,156,799 1,060,290,982

CITY OF SWANSTATEMENT OF FINANCIAL POSITION

AS AT 31 JANUARY 2014

3.3

RETAINEDSURPLUS

ASSET REVALUATION

RESERVES

RESERVES CASH / INVESTMENT

BACKED

TOTALEQUITY

Balance as at 1 JULY 2012 579,457,682 200,438,626 41,121,408 821,017,715

Changes in Accounting Policy - - - -

Correction Of Errors - - - -

Restated Balance 579,457,682 200,438,626 41,121,408 821,017,714

Net Result 67,837,714 - - 67,837,714

Total Other Comprehensive Income - 171,435,553 - 171,435,553

Transfer to Trust Fund from Reserves - - - -

Transfer from/(to) Reserves (10,790,509) - 10,790,509 -

Balance as at 30 JUNE 2013 636,504,887 371,874,179 51,911,917 1,060,290,981

Net Result 72,754,767 - - 72,754,767

Total Other Comprehensive Income - 1,111,050 - 1,111,050

Transfer from/(to) Reserves (3,414,792) - 3,414,792 -

Balance as at 31 JANUARY 2014 705,844,861 372,985,229 55,326,709 1,134,156,798

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS31-Jan-14 30-Jun-13

Cash / Investment Backed ReservesAged Services Asset Replacement 96,655 13,373City Asset Replacement 2,630,813 4,722,376Ellenbrook Community Facilities 918,223 932,730General Insurance 434,468 500,000Gravel Pit Rehabilitation 256,120 252,625Hazelmere/Guildford District Drainage 1,128,620 816,283Midland District Drainage Development 7,510,321 6,639,380Plant & Equipment 3,616,082 3,760,268Vale Community Facilities 1,201,107 1,339,302Waste Management 1,713,319 2,716,659Employee Entitlements - LSL 2,211,986 1,471,179Hazelmere Industrial Area Infrastructure Reserve - Stage 1 493,705 963,227Hazelmere Industrial Area Infrastructure Reserve - Stage 2 3,131,813 - Strategic Development - Land Acquisition 1,268,998 - Urban Growth Corridor Sub-Regional Contributions - Brabham (Albion) 5,985,560 4,703,519 - Caversham 7,225,789 5,669,727 - Dayton (West Swan East) 12,721,220 12,243,464Other Restricted Assets - Midland Brick Trust Fund 35,275 35,275 - Drainage contributions 63,819 43,319 - Footpath contributions 155,648 155,648 - Malaga Parking contributions 48,913 56,721 - Roadwork contributions 2,306,283 2,175,201 - Unspent Specific Grants - 2,676,841 - Public Art 171,970 24,800Sub total Cash / Investment Backed Reserves 55,326,709 51,911,917Add: other restricted cash / investment assets (i.e Bonds) 7,199,831 6,230,432Total of restricted cash / investment assets 62,526,540 58,142,349Add: Unrestricted cash / investment assets (i.e. MUNI funds) 65,013,765 21,388,530TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 127,540,305 79,530,879Consisting of: Cash and Cash Equivalents 127,179,037 77,739,200 Investments 361,269 1,791,679

127,540,305 79,530,879

CITY OF SWANSTATEMENT OF CHANGES IN EQUITY


4.1

Comments

► During the month Ferguson St Midland expended $107k, resulting in completion of the drainage installation.

► Overall Capital Expenditure at the end January was $31.7m. $23.6m was actual and $8.1 committed costs.

► Charlottes Vineyard Pavilion spent $390k during the month resulting in a 92% spend of annual budget. Practical completion of works was achieved during the month and post completion remedial works have begun.

► The following projects will be re-budgeted to 2014/15 financial year as part of the budget review process: Swan Youth Service $1.6m, Ellenbrook DOS North building $1.1m, Gnangara Road $2m, Midland Oval Realign Drainage $340k and the Avenue $610k.

► In January Capital revenue recorded was: Marangaroo Drive $44k and Gnangara Road $5.6m. Swan Regional Riverside Park received an additional $137k relating to prior years.

► Progress to remove the island continues at the Reid Highway Intersection. $742k was expended during the period bringing total spend to date to $3.1m.

4.0 Capital

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,000

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

mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 13/14 Budget 13/14

Prior Year Actual Prior Year Budget

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Buildings Drainage Footpaths Parks Roads P&E, Other

mill

ions

$

YTD Capital Works expenditure

Actual & CommittedBudget

Total CommittedActualJob Number and Name

YTD

Revenue

4/02/14

11:41:42AM

% of

Budget

% of

Budget

Current Budget

YTD CAPITAL JOBS SUMMARY REPORTFOR THE PERIOD ENDING 31 JANUARY 2014

Current Budget

Full Year

Revenue

Full Year

Expense

Y T D E x p e n s e

Administration Building 158,200 91,322 30,185 121,508 BCW04134 77

Minor Capital Building Project 24,780 299 5,890 6,189 BCW05114 25

Swan Caring Building Upgrade 44,240 31,754 9,288 41,042 BCW05122 93

Guildford Visitor Centre 53,000 5,298 1,560 6,858 25,673 BCW05129 13

Altone Leisure Centre 224,770 16,319 39,311 55,630 BCW05137 25

New Depot 3,396,120 2,794,116 8,953 2,803,069 BCW05139 83

Ballajura Aquatic Centre 165,200 12,272 6,668 18,939 BCW06110 11

Noble Falls Toilets 10,350 BCW06121

Swan Park Recreation Centre 262,940 207,748 16,703 224,451 BCW07108 85

Roof Safety Access Systems 50,850 20,562 20,562 BCW07115 40

Airconditioner Renewal Program 275,940 18,699 232,010 250,709 BCW07116 91

Lock & Key Replacement Program 61,020 60,398 3,825 64,223 BCW07117 105

Charlottes Vineyard Pavilion 1,243,000 1,142,729 2 1,142,731 BCW07119 92 187,500

Percy Cullen Pavilion 820,000 770,376 15,162 785,537 250,000 BCW07121 96 60 420,000

Ballajura Pavilion 452,000 1,265 326,381 327,646 BCW07123 72

Depot - Disaster Recovery Room 95,000 106,313 6,404 112,717 BCW07128 119

Aveley/Turkich Pde Com Centr 208,770 208,859 173 209,031 BCW08103 100

Bullsbrook Waste Transfer Stat 256,000 27,082 27,082 BCW08109 11

Midland Junction Arts Centre 150,000 37,062 101,131 138,192 BCW08116 92

Midland Village 37,000 32,166 3,186 35,351 BCW08117 96

Swan City Youth Service 2,075,000 38,541 90,054 128,595 BCW08120 6 2,075,000

Bus Shelters 30,000 31,604 440 32,044 BCW09102 107

Bin Compounds 22,600 17,708 17,708 BCW09104 78

Energy Conservation Measures 220,350 58,512 3,640 62,152 BCW09105 28

Switchboards Renewal 87,280 11,305 15,192 26,497 BCW09106 30

Electrical Plant & Equipment 15,270 3,022 3,022 BCW09107 20

Heritage Precincts 329,000 76,463 207,860 284,322 BCW09108 86

Asbestos Management Program 40,000 5,090 500 5,590 BCW10101 14

Integrated Systems Program 180,350 116,554 47,950 164,503 BCW10102 91

Equipment Fire System Safety 169,500 17,140 91,252 108,392 18,905 BCW10106 64

Universal Access - Buildings 30,000 1,380 3,750 5,130 BCW10109 17

Ellenbrook DOS Nthn 3,800,080 17,786 32,930 50,716 BCW11103 1 1,522,530

Ellenbrook DOS Sthn 790,630 15,281 1 15,282 BCW11104 2

Ellenbrook Recreation Centre 50,000 BCW11106

Security Systems Renewal Progr 90,400 27,705 5,028 32,733 BCW11108 36

Building Disposal 49,000 43,137 43,137 BCW11109 88

Pickett Park Community Facilit 1,000,000 19,002 0 19,002 BCW12102 2

15 Keane Street Upgrade 700,000 27,402 45,300 72,702 BCW12104 10

Swan Valley Visitors & Noongar 100,000 34,146 34,146 BCW12105 34 50,000

Lilac Hill Pavilion 45,410 30,889 12,630 43,519 BCW12110 96

Ballajura Place Office 300,000 1,024 1,024 BCW13101 0

Caversham Community Centre 150,000 BCW13102

Gidgegannup Sheep Shed Rf Repl 10,000 33,925 33,925 BCW13103 339

Midland Oval 150,000 18,984 18,984 BCW13104 13

Ballajura Community Centre 452,000 462,184 462,184 BCW13105 102

Swan Child Care Centre 72,080 68,500 68,500 BCW13106 95

BCW Building Capital Works 4,255,030 18,948,130 6,210,674 1,914,602 8,125,277 294,578 43 7

Midland Drainage 50,000 1,997 1,997 DRN04213 4


YTD

Revenue

4/02/14

11:41:42AM

% of

Budget

% of

Budget

Current Budget


Current Budget

Full Year

Revenue

Full Year

Expense

Y T D E x p e n s e

Great Eastern Highway 60,000 DRN08207

Kidman Ave Sth Guildford 75,000 DRN09202

Ferguson St Midland 508,820 326,028 44,260 370,288 DRN10202 73

Janet St Hazelmere 60,000 DRN10204

Swan Valley Drainage 5,086 402 5,488 DRN11201

Terrace Road 0 0 DRN11202

Charles Street 400,000 3,291 23,882 27,173 DRN11205 7

Wroxton Street 240,000 237,927 4,721 242,647 DRN11206 101

Eric Street 131,180 131,177 131,177 DRN12202 100

Fauntleroy Street 75,000 DRN12203

Henry Street 40,000 24,645 3,923 28,568 DRN12206 71

Midland Oval Realign Drainage 340,000 DRN13205

Other Drainage Upgrades 350,000 120,350 18,792 139,142 DRN13209 40

Warde Street 130,000 105,094 7,632 112,726 DRN13210 87

DRN Drainage 2,460,000 955,594 103,612 1,059,206 43

Footpath Replacements 59,000 61,181 61,181 FTP06505 104

Swan Cycle Planning Project 121,090 121,091 121,091 FTP09501 100

Universal Access - Footpath 50,000 51,418 51,418 FTP10101 103

Farrall Road Footpath 10,000 6,325 6,325 FTP13501 63

West Parade Footpath 1,000,000 FTP13502 1,000,000

Footpaths - Hazelmere 130,000 132,890 1,833 134,723 FTP13503 104

SRRP Footpath 20,000 FTP13504

FTP Footpaths 1,000,000 1,390,090 372,905 1,833 374,739 27

Gravel Pit 56,616 2,000 58,616 32,234 GRP04100

GRP Gravel Pit 56,616 2,000 58,616 32,234 0

Internal Build P & E 40,880 28,078 1,783 29,861 PEQ07100 73

Intranet Redevelopment 28,000 10,360 10,360 PEQ07103 37

CCTV - Safer Suburbs 100,000 75,701 960 76,661 PEQ08104 77

ePlanning 40,000 7,053 7,053 PEQ09101 18

Online Learning System 24,000 PEQ10105

Midland Parking Technology 50,000 50,000 50,000 PEQ11102 100

Aurion - Electronic Forms 29,700 8,003 20,200 28,203 PEQ12101 95

Aurion - Planning Development 14,150 530 5,455 5,985 PEQ12102 42

Swan Business Website 15,000 21,720 21,720 PEQ12103 145

Unified Communications (PABX) 296,000 5,000 5,000 PEQ12105 2

Disaster Recovery Room 252,500 PEQ12107

Centaman Upgrade 44,760 20,325 20,325 PEQ13101 45

COS Website Maintenance 85,000 PEQ13102

PEQ Plant & Equipment 1,019,990 139,033 116,135 255,168 25

Guildford Entry Statement 270,000 PRK04321

Midland Streets & Entry Lscape 34,200 25,659 8,800 34,459 PRK04322 101

Residential Street Trees 36,000 24,091 298 24,389 PRK04324 68

Minor Park Furniture 10,000 256 256 PRK04326 3

Trees to Residents-Rural Areas 20,000 14,527 14,527 PRK04328 73


YTD

Revenue

4/02/14

11:41:42AM

% of

Budget

% of

Budget

Current Budget


Current Budget

Full Year

Revenue

Full Year

Expense

Y T D E x p e n s e

James St Lscape & Entry 285,000 94,395 52,092 146,487 PRK05303 51

Parks & Streetscapes Minor 100,000 40,965 46,607 87,573 PRK05304 88

Swan Regional Riverside Park 650,003 PRK05307

Tourism Signage 50,000 45,868 7,981 53,849 1,390 PRK05309 108

Emu Lake Restoration 153,000 322 322 PRK05311 0

Stirling Square 64,500 45,324 45,324 PRK05322 70

Altone Streets & Entry Lscape 560,000 5,347 97,482 102,829 PRK07315 18

Streetscaping - Ballajura 500,000 1,852 1,852 PRK07337 0

Bushland Fencing 180,920 13,002 13,002 58,000 PRK08307 7 100 58,000

Gazebo Replacement 52,000 PRK08308

Lilac Hill Oval Lighting 28,570 5,911 1,758 7,669 PRK08313 27

Public Art 127,000 PRK08318

Playspace Replacemet Pgm 860,000 250,323 221,587 471,911 PRK10102 55

Regional Open Space - Whiteman 100,000 999 999 PRK11101 1

Reticulation/Hydrozoning 152,000 120,896 120,896 PRK11102 80

Ellenbrook DOS North 3,606,000 1,238,804 251,860 1,490,664 PRK11105 41 375,000

Ellenbrook DOS South 4,000,000 964 964 PRK11106 0

Fauntleroy Park 235,000 920 48,903 49,823 PRK12302 21

Gidgegannup Skate Park 10,000 169 10,325 10,494 PRK12303 105

City Wide Fencing Water Bodies 50,000 22,281 22,281 PRK12306 45

Lanius Park Drain 85,500 67,500 PRK12308 100 67,500

Boat Ramp, Fishmarket Rsv Gfrd 50,000 10,155 10,155 PRK13301 20

Bollards Corona Way Park 15,500 15,254 15,254 PRK13302 98

Memorial Woodlake Amphitheatre 100,000 PRK13303

Swan Street Streetscape 41,000 PRK13304

Karijini Oval Lighting 57,140 47,785 26,221 74,005 PRK13305 130

Ballajura Oval Lighting 28,570 14,504 2,600 17,104 PRK13306 60

Altone Oval Lighting 45,720 2,596 9,650 12,246 PRK13307 27

Pickett Park Lighting 80,000 31,755 13,215 44,971 PRK13308 56

PRK Parks 500,500 11,987,620 2,060,398 813,906 2,874,304 776,892 24 155

Albert Road 191,000 166,859 15,780 182,639 RDN04432 96

Lord Street 110,000 6,137 100,333 106,471 49,628 RDN04433 97 68 73,330

Hamersley St 64,230 48,208 48,208 RDN04442 75

Beechboro Road 165,000 171,984 171,984 172,727 RDN04465 104

Gnangara Road 5,800,000 44,084 0 44,084 RDN04468 1 2,000,000

Hooley Road 67,500 RDN04477

Midland Parking 320,000 10,378 10,378 RDN05401 3

Street Lighting Upgrades 226,000 43,253 57,676 100,929 RDN05402 45

The Crescent 150,000 RDN05403

Traffic Safety Minor Projects 50,000 18,188 14,710 32,898 RDN05405 66

Marangaroo Drive 223,200 224,091 65 224,156 73,893 RDN05406 100 100 73,900

Morrison Road 89,800 3,506 84,000 87,506 19,147 RDN05408 97 40 47,800

Local Road Prog - City WideRDN05423 984,880

Haddrill Road 50,000 1,364 1,364 RDN05436 3

Bennett Street 49,000 RDN05437

Ellenbrook Road 410,000 370,602 67,228 437,830 RDN05449 107

O'Brien Road 70,000 63,395 63,395 RDN05457 91

Clenton Road 70,000 59,801 59,801 RDN05459 85

Rosher Road 323,800 323,785 323,785 194,909 RDN05494 100


YTD

Revenue

4/02/14

11:41:42AM

% of

Budget

% of

Budget

Current Budget


Current Budget

Full Year

Revenue

Full Year

Expense

Y T D E x p e n s e

Bridge Works 1,102,000 194,483 701,701 896,185 2,727 RDN06420 81 23 12,000

Investigation,Design Projects 118,000 130,008 960 130,968 RDN06421 111

Lloyd Street 50,000 234 234 RDN06450 0

Beechboro Road North 17,000 16,996 16,996 RDN06453 100

Local Road Program-Testing 57,000 12,707 2,523 15,230 RDN07402 27

Contributions For Works To 40,000 24,438 24,438 RDN07403 61

Reid Hwy 3,343,000 2,673,035 449,731 3,122,766 1,938,317 RDN07412 93 96 2,011,000

Marshall Rd/Bellefin Dr Inters 150,000 9,857 86,115 95,972 48,667 RDN07422 64 40 121,670

The Avenue 610,000 RDN07437

Smith Road 273,000 14,068 400 14,468 RDN07449 5

Warbrook Road 100,000 3,986 3,986 RDN07451 4

Malaga Industrial Carparking 300,000 11,308 11,308 RDN07454 4

Carpark Renewals 188,300 2,566 35,673 38,238 RDN08405 20

Clayton Street 1,300,000 15,000 15,000 249,333 RDN08407 1 40 623,300

Alexander Drive 129,950 129,996 129,996 140,800 RDN08408 100

Campersic Road Traffic Safety 100,000 1,400 1,400 RDN08440 1

Mathoura Street 90,000 RDN09411

Copley Road 290,000 259,319 5,927 265,246 RDN09414 91

Wandena Road 130,000 97,620 97,620 RDN09416 75

Oakover Road 30,000 4,196 22,000 26,196 RDN09431 87

Beach Road 412,200 174,617 1,000 175,617 154,545 RDN09441 43

Coolamon/Mornington 140,000 3,305 89,000 92,305 RDN10233 66

Henley Street 43,000 RDN10253

Hazelmere Industrial Area 2,130,000 542,597 97,439 640,036 RDN11201 30

Suffolk Street 50,000 RDN11203

Benara Road 39,210 34,288 0 34,288 RDN11401 87

Bermuda Drive 66,000 65,354 65,354 RDN11402 99

Breeze Road 60,000 RDN11404

Military Road 1,191 1,191 RDN11410

Water Street 190,000 131,000 131,000 RDN11422 69

Percy Cullen Parking 60,000 0 0 RDN12404 0

West Swan/Gnangara Rd - RAB 35,000 34,998 34,998 200,000 RDN12405 100

Clayton/Cowie - RAB 287,380 88,193 198,115 286,308 RDN12409 100

Admin Building Car Park 135,000 141,050 6,311 147,361 RDN13201 109

De Burgh Road 52,000 33,135 33,135 RDN13202 64

Farrall Road 15,000 15,405 15,405 RDN13203 103

Gnangara Road 4,000,000 38,635 4,881 43,516 5,600,000 RDN13204 1 140 4,000,000

Hazelmere Lighting 50,000 8,182 8,182 RDN13205 16

Joseph Road 30,000 RDN13206

Kep Court 26,000 RDN13207

Koojan Avenue 48,000 RDN13208

Korbosky Road 30,000 1,458 1,458 RDN13209 5

Neaves Road 80,500 17,289 17,289 RDN13210 21

Orchard Street 196,000 11,541 11,541 RDN13211 6

Peppermint Crescent 17,670 17,673 17,673 RDN13212 100

Rutland Road 330,000 5,227 108,817 114,044 88,000 RDN13213 35 40 220,000

Cheltenham Street 30,000 866 866 RDN13216 3

Third Avenue 200,000 4,892 3,818 8,709 RDN13217 4

RDN Roads 10,167,880 25,600,740 6,360,423 2,321,526 8,681,949 8,932,695 34 88

15,923,410 C A P I T A L J O B S T O T A L 61,406,570 16,155,643 5,273,616 21,429,259 10,036,399 35 63

FOR THE PERIOD ENDING 31 JANUARY 2014YTD CAPITAL JOBS SUMMARY REPORT

11:41:42AM

4/02/14

% of

Budget

YTD

Revenue

% of

BudgetTotal CommittedActual

Full Year

Expense

Full Year

Revenue

Y T D E x p e n s e

Current Budget

Current Budget

4,580,000 2,400 0 2,400 1603 Purchase of Assets Land

1608 Purchase of Assets Buildings

4,464,841 4,464,841 1609 Purchase of Assets Comm Bus Pr

380,300 123,975 33 63,979 59,996 1613 Purchase of Asset Office F & F

5,495,950 3,141,049 57 578,021 2,563,028 1618 Plant & Equipment

1,164,640 752,917 65 696,012 56,904 1623 Purchase of Assets Computer

1,789,720 1,822,311 102 1,675,469 146,842 1628 Purchase of Assets Vehicle

1634 Purchase of Asset Other Rd Inf

(1,815)(1,815)1638 Purchase of Assets Parks & Res

(2,400)(2,400)1648 Purchase of Assets Other Infr

1692 Purchase of Other Assets

C A P I T A L A S S E T S T O T A L 13,410,610 10,303,277 77 7,476,508 2,826,770

G R A N D T O T A L 15,923,410 74,817,180 23,632,150 8,100,385 31,732,536 10,036,399 42 63

5.1

4.0 DInvestmentsSummary

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

The City's Investment advisors Prudential Investment Services Corp, have completed the bi-annual Investment Strategy and Portfolio Review. They advise that, "Councils investment portfolio continues to be managed prudently while taking advantage of market opportunities as they arise. Performance has been soundly above benchmark while maintaining a portfolio predominately comprised of deposits and securities issued by Australia's highest rated financial institutions."


0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11 12

Mill

ions

$

Total Investment Position showing Prior Year Comparisons

2009

2010

2011

2012

0

20

40

60

80

100

120

140


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2010 2011 2012 2013 2014

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

100,000110,000120,000130,000


Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash


City of Swan Economic and Investment Portfolio Commentary

January 2014 Global issues:

� In the US, the Federal Reserve shaved another $10bln per month off of its Quantitative Easing cash infusion program. Monthly purchases of mortgage backed securities and treasuries by the central bank is now $65bln/mo, down from the original $85bln/mo level. The market took comfort in the Fed’s assurances that official interest rates would remain nearly zero for the foreseeable future.

� Conflict and economic weakness in emerging markets, particularly the Ukraine, Argentina and Turkey, helped trigger a drop in share markets around the world (including -3% in Australia) as the threat of a currency crisis, and drop in commodity demand, amongst these countries grows.

� SE Asian countries and Japan all recorded good economic data over the month, helping keep concerns in check over slowing Chinese growth.

Domestic issues:

� In Australia, economic data was again mixed with retail sales surprising on the upside, double its expected monthly growth, but employment data showing a drop of >30,000 jobs in December. Then the release of much higher than expected inflation data for the Dec Qtr had economists re-evaluating the possibility of the interest rate hikes in 2014.

� Summing up the recent releases, the RBA stated that it “expects [domestic] growth to remain below trend for a time yet and unemployment to rise further before it peaks. Beyond the short term, growth is expected to strengthen, helped by continued low interest rates and the lower exchange rate.”

Interest rates

� The RBA kept the official cash rate unchanged, at 2.50%, following its first meeting for 2014. Market rates remain in the 2.60/2.65% area from 1 to 12 months, before increasing 2 years onward.

Investment Portfolio Commentary

Council’s investment portfolio posted a return in January of 4.17%pa versus the bank bill index benchmark return of 2.67%pa. For the financial year to date, Council’s investment portfolio has exceeded the bank bill index benchmark by 1.15%pa (3.84%pa vs 2.69%pa)

Council has a well-diversified portfolio with over 98% of the portfolio spread among the top three credit rating categories (A long term/A2 short term and higher). It is expected that Council can continue to achieve above benchmark returns with prudent investment selection for its short and long term holdings.

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

Totals 6,250,000 2,931,867 3,318,133

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

Alternative Investments 225,292

Face Value Last

Coupon

Borrower Rating Maturity Purchase

Price

Current Value Annualised

Monthly

Return

Reference

225,292 0.0000 Lehman Bros. Global Property Note D 7-Jul-15 300,000 0

225,292 0.0000 300,000 0

Credit Linked Notes 1,775,375 525,749

Face Value Current

Coupon

Borrower Rating Maturity Purchase

Price

Current Value Accrued

Interest

Reference

502,708 4.0183 Corsair (Cayman Islands) No 4 Ltd Series 6 CCC 20-Mar-14 550,000 25,135 664 Kakadu

22,667 4.5000 Helix Capital - OASIS A CC 4-Sep-14 1,000,000 113 78 Oasis A

1,000,000 4.3150 Aphex Pacific Capital Ltd Series 2006-5 CCC- 22-Dec-14 1,000,000 500,000 1,064 Glenelg

250,000 4.2433 MSM ACES SPC Series 2006 -7 Class 1A D 22-Jun-15 500,000 500 349 Parkes 1A

1,775,375 4.2233 3,050,000 525,749 2,155

Current Accounts 41670 34,458,092 #######

Face Value Current

Yield

Borrower Rating Maturity Current Value Reference

12,986,223 2.5000 Commonwealth Bank of Australia A-1+ 12,986,223 RBA

3,656,035 2.0000 Commonwealth Bank of Australia A-1+ 3,656,035 Cash at bank

3,165,793 2.0000 Commonwealth Bank of Australia A-1+ 3,165,793 Brabham

4,327,550 2.0000 Commonwealth Bank of Australia A-1+ 4,327,550 Caversham

10,322,490 2.0000 Commonwealth Bank of Australia A-1+ 10,322,490 Dayton

34,458,092 2.1884 34,458,092

Managed Funds 1,288,864 1,288,864

Face Value Current

Yield

Borrower Rating Current Value Reference

1,288,864 1.6800 UBS Cash Management Trust AAA 1,288,864

1,288,864 1.6800 1,288,864

Term Deposits 41673 41,753 91,000,000 #######

Face Value Purchase

Yield

Dealing Bank Rating Rollover DateFace Value Current Value Accrued

Interest

Reference

1,000,000 3.0800 ANZ Banking Group A-1+ 03-Feb-14 1,000,000 1,007,359 7,426 Brabham

2,000,000 3.4500 Bendigo and Adelaide Bank Limited A-2 03-Feb-14 2,000,000 2,016,733 16,825

1,000,000 3.0800 ANZ Banking Group A-1+ 03-Feb-14 1,000,000 1,007,359 7,426 Caversham

1,000,000 3.0800 ANZ Banking Group A-1+ 03-Feb-14 1,000,000 1,007,359 7,426 Dayton

2,000,000 3.4500 Suncorp Bank A-1 03-Feb-14 2,000,000 2,016,731 16,825

2,000,000 3.7000 National Australia Bank Limited A-1+ 03-Feb-14 2,000,000 2,017,977 18,044

2,000,000 3.2400 St George Bank A-1+ 04-Feb-14 2,000,000 2,015,349 15,445

3,000,000 3.6000 Members Equity Bank A-2 05-Feb-14 3,000,000 3,025,454 25,447

2,000,000 3.0400 ANZ Banking Group A-1+ 10-Feb-14 2,000,000 2,008,925 8,995



2,000,000 3.3300 Commonwealth Bank of Australia A-1+ 13-Feb-14 2,000,000 2,003,445 3,284

1,000,000 3.3300 Commonwealth Bank of Australia A-1+ 13-Feb-14 1,000,000 1,001,722 1,642 Dayton

1,000,000 3.3300 Commonwealth Bank of Australia A-1+ 13-Feb-14 1,000,000 1,001,722 1,642 Brabham

1,000,000 3.3300 Commonwealth Bank of Australia A-1+ 13-Feb-14 1,000,000 1,001,722 1,642 Caversham


1,000,000 3.3000 Commonwealth Bank of Australia A-1+ 17-Feb-14 1,000,000 1,001,476 1,356 Brabham


1,000,000 3.3000 Commonwealth Bank of Australia A-1+ 17-Feb-14 1,000,000 1,001,476 1,356 Caversham




2,000,000 3.6600 National Australia Bank Limited A-1+ 19-Feb-14 2,000,000 2,015,057 14,439

2,000,000 3.6500 Suncorp Bank A-1 03-Mar-14 2,000,000 2,013,318 12,200

4,000,000 3.6300 National Australia Bank Limited A-1+ 04-Mar-14 4,000,000 4,026,519 24,266

3,000,000 3.7000 Members Equity Bank A-2 04-Mar-14 3,000,000 3,020,450 18,551

4,000,000 3.2500 St George Bank A-1+ 04-Mar-14 4,000,000 4,022,698 21,726






3,000,000 3.0500 ANZ Banking Group A-1+ 25-Mar-14 3,000,000 3,002,572 2,005

3,000,000 3.3100 Commonwealth Bank of Australia A-1+ 25-Mar-14 3,000,000 3,003,849 2,176

3,000,000 3.6500 Members Equity Bank A-2 07-Apr-14 3,000,000 3,011,777 7,800

3,000,000 3.5000 Bendigo and Adelaide Bank Limited A-2 14-Apr-14 3,000,000 3,008,729 5,178

4,000,000 3.6500 National Australia Bank Limited A-1+ 14-Apr-14 4,000,000 4,013,010 7,200

2,000,000 3.5000 Suncorp Bank A-1 16-Apr-14 2,000,000 2,005,455 3,068

2,000,000 3.4000 Bendigo and Adelaide Bank Limited A-2 22-Apr-14 2,000,000 2,004,261 2,049

2,000,000 3.6500 Members Equity Bank A-2 22-Apr-14 2,000,000 2,005,500 2,200

2,000,000 3.4000 Suncorp Bank A-1 22-Apr-14 2,000,000 2,004,206 2,049

2,000,000 3.6000 National Australia Bank Limited A-1+ 23-Apr-14 2,000,000 2,005,235 2,170

4,000,000 3.2600 St George Bank A-1+ 24-Apr-14 4,000,000 4,006,394 3,215

91,000,000 3.4531 91,000,000 91,443,692 396,404

107,275,754 Investment Current Value 106,244,528

21,471,868 Cash Current Value 21,471,868

128,747,622 Total Current Value 127,716,396

Investment Face Value

Cash Face Value

Total Face Value 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. 430091.

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 91,969 72,706 19,263 21%Sanitation Charges 15,980 14,994 986 6%Drainage Charges 1,997 1,927 70 4%Security Charges 1,051 986 65 6%Other 116 30 86 74%

111,113$ 90,643$ 20,470$ 18%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

As at 31 January 2014

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

0

10

20

30

40

50

60

70

80

90

100

110


$ M

illio

ns

2011

2012

2013

2014A 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 $1.8m

Current Debtors outstanding $18.7m

Total Debtors $20.5m

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 31 January 2014

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - 525,807 - - 525,807 0.00% 25.98%2 - - - 127,700 127,700 15.79% 6.31%3 - - 127,188 - 127,188 0.00% 6.28%4 - - - 70,000 70,000 8.66% 3.46%5 - - - 39,955 39,955 4.94% 1.97%6 - - - 35,749 35,749 4.42% 1.77%7 - - - 35,000 35,000 4.33% 1.73%8 - 2,310 - 30,837 33,147 3.81% 1.64%9 - - - 29,000 29,000 3.59% 1.43%

10 - - - 27,000 27,000 3.34% 1.33%Other Debtors 446,383 71,503 42,320 413,496 973,702 51.13% 48.10%

Total 446,383 599,620 169,508 808,737 2,024,248 100.00% 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

Prosecution of debt has commenced.

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

Payment plan in place.

Payment plan in place.Prosecution of debt has commenced.

The City has lodged a Caveat on the land title, monies to be recovered upon sale of property.Prosecution of debt has commenced.Reminder notice sent.

Reminder notice sent.


As % of 90 Days Plus Debtors

As % of Total Debtors

Top Ten Debtors


Current 22%

30 Days 14%

60 Days 8%

90 Days plus 40%

7.1

Income from Operating Activities

Grants and Other Contributions 17% favourable Variance of $660,352

Governance 69% Favourable Variance of $86,955

Health 18% Unfavourable Variance of $26,413

Housing 40% Favourable Variance of $11,622

Economic Services 19% Favourable Variance of $190,516

Expenditure from Operating Activities

General Purpose Funding 10% Favourable Variance of $120,938

Governance 15% Favourable Variance of $1,045,393

Rebates received from the City's Local Government Insurance Scheme has contributed to the favourable variance within Governance. A budget adjustment for $53.7k was processed in November.

The timing of the valuation charges received for the period ended January has caused a $67k favourable variance, it is expected a majority of these costs will be received in the last quarter of the financial year. Charges relating to the collection of rates is less than budget by $58k, It is expected this variance will decrease during the course of the year.

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

Interest on Investments is showing a favourable variance of $461k due to cash levels being greater than originally budgeted. Penalty Interest on outstanding rates is higher than anticipated by $118k, this will reduce as outstanding rates are decreased. Property Information fees are showing a favourable result of $62k for the period ended January. These favourable variances have been taken into account as part of the annual budget review process.

The annual food safety service charge has produced a negative result for the period ended January due to the timing of the budget.

The Property Rental fee from the Elvire Chalets has produced a positive variance for January. It is anticipated that actual will align with budget as the year progresses.

Building application fees are greater than budget by $236k for January. Forecasts in building approvals are expected to increase this financial year and will be reflected in the budget review for 2013/14.

Employee costs show a favourable variance of $261k. Consultant expenditure is below original budget by $227k across all cost centres with the exception of Developers Contributions. Budget adjustments have been processed to reduce consultant expenditure by $58.9k . Legal expenses are less than budget by $98k with costs yet to be incurred. Project Studies & Surveys expenditure is showing a favourable variance of $248k for the period ended January.

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Housing 14% Favourable Variance of $11,478

Economic Services 28% Favourable Variance of $880,572

Other Property and Services 89% Unfavourable Variance of $1,208,169.

Non Cash Items

Movement in Employee Provisions and Adjustments

1294% Favourable Variance of $1,350,842

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 21% Favourable Variance of $1,874,357

Developer Contributions Plans: Cash 24% Unfavourable Variance of $1,656,961

Other Funding Sources

Profit on Impairment of Investments 876% Favourable Variance of $235,134

Proceeds from Sale of Assets 26% Favourable Variance of $574,479

Self Supporting Loans Repayment 49% Favourable Variance of $27,322

Opening Net Current Assets July 1 B/Fwd 14% Favourable Variance of $993,565

The City of Swan has received an unbudgeted part payment of $200k from the Lehman Brothers proceedings, this has resulted in a favourable variance for January.

Due to the sale of land, a favourable variance has resulted for the period ended January 2014.

Self Supporting Loan (167) for Foundation Housing, was fully discharged in November contributing to the favourable variance.

The Opening Net Current Asset position was greater than anticipated.

Contract expenditure for cleaning and gardening for the Elvire Chalets continues to create a favourable variance. It is anticipated that expenditure will align with budget by the end of the financial year.

Project Studies and Surveys expenditure is below budget by $384k ytd. Strategic Land Use Planning and Economic Development project expenditure is expected in the second half of the financial year. Contract expenditure has yet to be incurred. Employee costs are $192k less than budget for the period ended January.

Project and Asset Management costs being recovered are directly related to expenditure on capital projects. Actual expenditure year to date on capital projects is only 27% of the annual original budget. As part of the budget review, $6.6m capital works will be rebudgeted to 2014/15.

The Non Current Long Service Leave provision has increased by $649k for the period ended January. The net movement in the Long Service Leave reserve was $741k for the period. Movement in Deferred Rates for January was $65k.

Capital Road grants are $3.3m greater than original budget for the period ended January. A capital grant of $1.9m has been received in January for the Reid Highway project.The Gnangara Road project has received 140% of its full year budget in January. Building Capital Grants for the Swan City Youth Service and the Ellenbrook DOS Northern projects are yet to be received. An unbudgeted capital grant for $650k has been received for the Swan Regional Riverside Park Project. Budget adjstments are pending.

In Brabham, developers contributed $211k during January. The timing of future development and the method of contribution is subject to economic variables, variances to actual can be expected as a result.

7.3

Original Budget

2013/14Revised Budget

2013/14

YTD ORIGINALBUDGET

@JANUARY 2014YTD ACTUAL

@JANUARY 2014$

VARIANCEVAR

NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

92,803,400 92,803,400 Rates 92,420,959 90,539,081 (1,881,879) - -6,309,250 6,309,250 Grants and Other Contributions 3,785,980 4,446,332 660,352 F 17%

99,112,650 99,112,650 Total General Purpose Funding 96,206,939 94,985,412 (1,221,527) - -204,120 257,890 Governance 126,142 213,097 86,955 F 69%

1,985,520 1,985,520 Law, Order and Public Safety 1,757,931 1,851,080 93,149 - -256,000 256,000 Health 149,333 122,921 (26,413) U (18%)

4,095,790 4,145,440 Education and Welfare 2,983,953 3,218,467 234,513 - -50,000 50,000 Housing 29,167 40,789 11,622 F 40%

16,850,270 16,852,270 Community Amenities 15,928,082 16,563,097 635,015 - -6,303,010 6,326,770 Recreation and Culture 3,787,791 3,610,906 (176,885) - -1,344,280 1,344,280 Transport 956,397 994,752 38,356 - -1,742,400 1,742,400 Economic Services 1,016,400 1,206,916 190,516 F 19%1,803,640 1,803,640 Other Property and Services 1,052,123 1,049,478 (2,645) - -

133,747,680 133,876,860 Subtotal Income 123,994,259 123,856,915 (137,343)

Expenditure(2,453,121) (2,453,121) General Purpose Funding (1,266,307) (1,145,368) 120,938 F 10%

(11,634,657) (11,426,167) Governance (6,785,765) (5,740,372) 1,045,393 F 15%(5,334,845) (5,369,185) Law, Order and Public Safety (3,117,851) (2,970,250) 147,601 - -(1,520,491) (1,530,741) Health (886,801) (848,077) 38,723 - -(8,278,897) (8,529,047) Education and Welfare (4,867,893) (4,521,553) 346,340 - -

(142,119) (142,119) Housing (82,903) (71,425) 11,478 F 14%(19,112,532) (19,275,452) Community Amenities (11,132,503) (11,070,757) 61,747 - -(38,403,408) (38,207,368) Recreation and Culture (22,558,056) (21,939,699) 618,357 - -(31,163,165) (31,152,055) Transport (18,160,628) (17,395,246) 765,382 - -

(5,312,020) (5,320,390) Economic Services (3,098,285) (2,217,713) 880,572 F 28%(2,333,135) (2,361,535) Other Property and Services (1,362,422) (2,570,591) (1,208,169) U (89%)

(125,688,390) (125,767,180) Subtotal Expenditure (73,319,414) (70,491,051) 2,828,362

8,059,290 8,109,680 Net Operating Profit / (Loss) 50,674,845 53,365,864 2,691,019

ADD NON CASH ITEMS29,293,080 29,293,080 Depreciation 17,087,630 16,326,141 (761,489) - -

178,932 178,932 Provisions and Other Accruals 104,377 1,455,219 1,350,842 F 1294%

29,472,012 29,472,012 Subtotal Non Cash Items 17,192,007 17,781,359 589,352

37,531,302 37,581,692 Net Operating Surplus / (Deficit) 67,866,852 71,147,224 3,280,371

LESS CAPITAL INCOME & EXPENDITURE14,917,570 17,054,070 Capital Grants, Subsidies & Contributions 8,942,402 10,816,760 1,874,357 F 21%11,769,600 11,769,600 Developers Contributions 6,865,600 5,208,639 (1,656,961) U (24%)

(32,988,670) (33,369,860) Purchase of Plant and Equipment (13,700,000) (12,799,968) 900,032 - -(39,398,720) (41,447,240) Purchase or Construction of Infrastructure (10,500,000) (9,771,136) 728,864 - -(45,700,220) (45,993,430) Subtotal Capital Income and Expenditure (8,391,998) (6,545,706) 1,846,292

LESS OTHER NON OPERATING ITEMS(3,850,709) (3,850,709) Loan Principal Repayments (2,246,247) (2,408,657) (162,410) - -

(34,877,781) (34,877,781) Transfer to Reserves (17,438,891) (16,158,921) 1,279,970 - -(38,728,490) (38,728,490) Subtotal Other Non Operating Items (19,685,138) (18,567,578) 1,117,560

OTHER FUNDING SOURCES25,758,843 25,961,743 Transfer from Reserves 12,879,421 12,744,129 (135,292) - -

198,990 198,990 Transfer from Trust Funds - - - - -46,000 46,000 Profit on Impairment of Investments 26,833 261,967 235,134 F 876%

3,843,780 3,843,780 Proceeds from Sale of Assets 2,242,205 2,816,684 574,479 F 26%95,895 95,895 Self Supporting Loans Repayments 55,939 83,261 27,322 F 49%

9,828,554 9,828,554 Proceeds from New Loans 200,000 200,000 - - -7,258,952 7,258,952 Opening Net Current Assets July 1 B/Fwd 7,258,952 8,252,517 993,565 F 14%

47,031,014 47,233,914 Subtotal Other Funding Sources 22,663,350 24,358,558 1,695,208

133,606 93,686 CLOSING NET CURRENT ASSETS YTD 62,453,067 70,392,498 7,939,431

CITY OF SWANSTATEMENT OF FINANCIAL ACTIVITY


7.4

ACTUAL @JANUARY

2014

ACTUAL @JUNE 2013

ACTUAL @JANUARY

2013Current Assets

Unrestricted Cash, Cash Equivalents & Investments 65,013,765 21,388,530 39,178,161Restricted Cash, Cash Equivalents & Investments 62,526,540 58,142,349 51,350,235Rates Debtors Current 22,062,190 4,005,705 19,942,922Trade and Other Receivables 1,990,646 2,690,994 2,082,822Prepayments 499,951 273,453 370,609Inventory 74,005 139,430 101,640Total Current Assets 152,167,098 86,640,461 113,026,389

Less Current LiabilitiesIncome in Advance (1,233,722) - (1,029,659) Accounts Payable (12,098,462) (12,531,933) (9,611,913) Provisions - Employee Entitlements (8,122,733) (9,096,450) (7,434,712) Loan Repayments (1,391,115) (3,795,791) (888,681) Total Current Liabilities (22,846,030) (25,424,174) (18,964,965)

Net Current Assets 129,321,068 61,216,287 94,061,424

Add Back Restricted LiabilitiesLSL Reserve 2,211,986 1,471,179 732,535 Loan Repayments 1,391,115 3,795,791 888,681 Self Supporting Loan Contributions (5,130) (88,391) (27,972)

Adjusted Net Assets 132,919,040 66,394,866 95,654,668

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (55,326,708) (51,911,917) (46,593,736) Monies Held In Trust (7,199,831) (6,230,432) (4,756,498)

Closing Funds 70,392,498 8,252,517 44,304,433 *

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

CITY OF SWANNET CURRENT FUNDING POSITION

AS AT 31 JANUARY 2014

0

20

40

60

80

100

120

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

Mill

ion

$

Liquidity Over Three Years

2011/122012/132013/14

8.1

1. STATEMENT OF CASH FLOW

Comments

2. RATE SETTING STATEMENT

Comments

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.

Cash and Cash Equivalents at the end of January 2014 are $127.2m compared to $77.7m as at June 2013. TotalOperating receipts for December are $111m. Operating payments for the period is $57m. Capital Grants, Subsidies &Contributions and Developers Contributions of $16m has been received. Payments for Capital Assets andInfrastructure costs ytd amounted to $22.5m.

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 lessrestricted funds and committed cash and amounts already reflected in the current year budget'. The opening fundforms part of the calculation of the amount of the deficiency to be raised from rates as referred to in s 6.2(2)(C) ofthe Local Government Act.

The City of Swan has levied all rateable properties as per the 2013/2014 Budget. Instalment interest Budget of $400k was levied in the month of Sept (excluding eligible pensioners and seniors). Penalty interest Budget of $450k will belevied throughout the year (excluding eligible pensioners and seniors). Ex-Gratia rates of $1.6m has been levied andcollected. Interim rates of $2.0m will be levied throughout the 2013/14 financial year.

8.0 Other Statutory Reports 8.0 Interim Other Statutory Reports

8.2

ORIGINALBUDGET2013/14

REVISEDBUDGET2013/14 CASH FLOWS FROM OPERATING ACTIVITIES

ACTUAL YTD@ JANUARY 2014

2012/2013ACTUAL

Receipts93,169,533 93,169,533 Rates Revenue 73,806,074 86,047,857

976,250 976,250 Service Charges 1,024,819 972,47427,354,530 27,354,530 Fees & Charges 23,687,532 25,605,861

3,756,000 3,756,000 Interest Earnings 2,987,196 4,308,7707,280,780 7,280,780 Operating Grants, Subsidies & Contributions 5,019,830 7,616,0861,576,720 1,576,720 All other revenue 1,567,859 4,641,4613,752,890 3,752,890 GST Inflow 2,912,114 2,804,816

137,866,703 137,866,703 Total Receipts 111,005,424 131,997,325Payments

(26,419,769) (26,419,769) Materials & Contracts (15,922,560) (23,806,108)(5,538,087) (5,538,087) Utility Charges (2,440,201) (4,706,559)

(60,026,795) (60,026,795) Employee Costs (34,718,698) (54,598,719)(379,260) (379,260) Insurance Payments (1,015,809) (827,772)

(1,654,990) (1,654,990) Interest Payments (883,616) (1,388,833)(1,624,100) (1,624,100) Other Payments (797,890) (851,126)(3,965,449) (3,965,449) GST Outflow (1,624,773) (2,138,992)

(99,608,450) (99,608,450) Total Payments (57,403,546) (88,318,109)38,258,252 38,258,252 Net cash provided / (used) by operating activities 53,601,878 43,679,216

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(32,988,670) (33,369,860) Purchase / Construction of capital assets (12,799,968) (35,166,088)(39,398,720) (41,447,240) Purchase / Development of infrastructure (9,771,136) (15,344,641)

- - Proceeds from Disposal of Investments 1,692,377 2,874,955(72,387,390) (74,817,100) (20,878,727) (47,635,774)

Receipts(14,917,570) (17,054,070) Capital Grants, Subsidies & Contributions 10,816,760 11,638,364(11,769,600) (11,769,600) Developers Contributions 5,208,639 10,685,586

3,843,780 3,843,780 Proceeds from Sale of Fixed Assets 2,816,684 1,393,725198,990 198,990 Transfer from Trust Funds - -

(22,644,400) (24,780,900) 18,842,083 23,717,675(95,031,790) (99,598,000) Net cash provided / (used) by investing activities (2,036,645) (23,918,100)

CASH FLOWS FROM FINANCING ACTIVITIES9,828,554 9,828,554 Proceeds from Loan Borrowings 200,000 9,482,570

(3,850,709) (3,850,709) Repayment of Borrowings (2,408,657) (2,526,393)95,895 95,895 Contributions to Repayments 83,261 82,928

- - ESL Movements - 99,215- - Other Loan Repayments Received - 160,000

6,073,740 6,073,740 Net cash provided / (used) by financing activities (2,125,396) 7,298,320(50,699,798) (55,266,008) Net increase / (decrease) in cash held 49,439,837 27,059,436

64,805,766 64,805,766 Cash at the beginning of the year 77,739,200 50,679,76514,105,968 9,539,758 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 127,179,037 77,739,200

CITY OF SWANSTATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2013/14

REVISEDBUDGET2013/14 OPERATING REVENUE

CURRENT REVISEDBUDGET YTD

@ JANUARY 2014

YTD ACTUAL@ JANUARY

2014976,250 976,250 Service Charges 976,250 1,024,819

27,354,530 27,404,530 Fees & Charges 22,364,661 23,687,5327,280,780 7,332,430 Operating Grants, Subsidies & Contributions 4,992,988 5,019,8301,915,460 1,915,460 Specified Area Rates 1,617,089 1,997,5473,756,000 3,756,000 Interest Earnings 2,413,392 2,987,1961,576,720 1,604,250 Other Revenue 955,188 598,457

42,859,740 42,988,920 Subtotal - operating revenue 33,319,569 35,315,382OPERATING EXPENSE

(60,328,850) (60,373,170) Employee Costs (34,560,411) (33,996,048)(26,959,580) (26,983,550) Materials & Contracts (16,008,195) (15,031,347)

(5,448,530) (5,448,530) Utility Charges (3,012,175) (2,440,201)(29,293,080) (29,293,080) Depreciation on Non-Current Assets (17,087,630) (16,326,141)

(1,654,990) (1,654,990) Interest Expenses (880,607) (883,616)(379,260) (379,260) Insurance Expenses (890,392) (1,015,809)

(1,624,100) (1,634,600) Other Expenses (952,538) (797,890)(125,688,390) (125,767,180) Subtotal - operating expense (73,391,949) (70,491,051)

(82,828,650) (82,778,260) Net cash from / (Non) operating activities (40,072,380) (35,175,669)Non Cash Items

- - Movement in Deferred Rates (Non Current) - 64,846178,932 178,932 Movement in Employee Provisions and Adjustments 104,377 1,390,372

29,293,080 29,293,080 Write Back Depreciation 17,087,630 16,326,14129,472,012 29,472,012 Total 17,192,007 17,781,359

Capital Works(39,398,720) (41,447,240) Purchase / Construction of infrastructure assets (10,500,000) (9,771,136)(32,988,670) (33,369,860) Purchase / Construction of other capital assets (13,700,000) (12,799,968)(72,387,390) (74,817,100) Total Capital Outlays (24,200,000) (22,571,104)

3,843,780 3,843,780 Proceeds from Sale of Fixed Assets 2,242,205 2,816,68411,769,600 11,769,600 Developers contributions 6,865,600 5,208,63914,917,570 17,054,070 Capital Grants, Subsidies & Contributions 11,078,902 10,816,760

(41,856,440) (42,149,650) Net Capital Outlays (4,013,293) (3,729,022)Debt Management

9,828,554 9,828,554 Proceeds from New Loans 200,000 200,000(3,850,709) (3,850,709) Repayment of Loans (2,246,247) (2,408,657)

95,895 95,895 Contributions to Debt 55,939 83,2616,073,740 6,073,740 Total (1,990,308) (2,125,396)

Other Funding Transactions46,000 46,000 Profit/Recovery Impairment of Investments 26,833 261,967

198,990 198,990 Transfer from Trust Fund - -25,758,843 25,961,743 Transfers from reserves 12,879,421 12,744,129

(34,877,781) (34,877,781) Transfers to reserves (17,438,891) (16,158,921)(8,873,948) (8,671,048) Net Movement in Reserves (4,532,637) (3,152,825)

7,258,952 7,258,952 Opening Funds 1 July - Net Current Assets 7,258,952 8,252,517(133,606) (93,686) Less Closing Funds 30 June - Net Current Assets (64,646,212) (70,392,498)7,125,346 7,165,266 Net Current Assets (Less Restricted) (57,387,260) (62,139,981)

90,887,940 90,887,940 SHORTFALL TO BE MADE UP FROM RATES 90,803,870 88,541,534


CITY OF SWANRATE SETTING STATEMENT

KEY ISSUES · 2016. 1. 29. · Ordinary Meeting of Council 05 March 2014 Page 1 5.5 FINANCIAL...

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