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City of Canning Annual Report 2012/2013Page 2
Contents
Table of Contents 2Key Goals 3Statement from the Commissioner 4Council 5Council 6Chief Executive Officer Report 7Snapshot of the Year Past 9Statutory Compliance 20Plan for the Future 22Financial Statements 24Auditors Report 77Statement by the CEO 2012/13 80
Table of Contents
City of Canning Annual Report 2012/2013Page 3
Key Goals
The Council has set a series of key goals that will provide a tangible expression of what it wants to see achieved in the future.
They are:• Serve the people of the City of Canning with sensitivity to their needs and,
encapsulate as part of its culture, the organisation’s motto …
“Above All - Service”
• Provide for the convenience, comfort and safety of all persons of the City.• Ensure appropriate development and maintenance of the amenities of every part
of the City.• Build a City of opportunities and one in which people will be proud to live, work and
recreate.• Promote the economic development and substantial growth of the City.• Provide open and fair government for all residents and ratepayers• Safeguard the health and welfare of those who reside or work within the City.
Key Goals
City of Canning Annual Report 2012/2013Page 4
Linton Reynolds AM LGM JP
Thefinancialyear2012/2013wasanunusualoneforanumberofreasons.TheCouncilrolewascarriedoutbyElectedMembers foronlyfivemonths,with theothersevenmonths supervised by a Commissioner appointed by the Minister for Local Government.
Reform of Local Government boundaries within the metropolitan region was also front andcentreandalthoughthefirstindicationofthestategovernment’spreferredoptionwas not released until after the period covered by this report, a large amount of additional work was undertaken to identify the community’s preferred option and internal analysis of a range of options.
The clear community view was that residents wanted Canning to remain within its current boundaries. This option is not acceptable to the current State Government.
Despite and almost because of these distractions, the City’s staff continued to provide the full range of services to our community. Some of these services are not currently provided by our neighbours, and staff responsible for those services are naturally anxious about their future.
Whilewedonotexpectfinalboundariestobeknownuntilafterthecompletionofthe2013/14year,theadministrationandIshareastronglyendorsed‘businessasusual’approachto2013/14.Inaddition,wewillworkwithstaffandthecommunitytoachievethe best possible outcome for all parties.
As the period in review came to a conclusion, our new CEO, Lyn Russell, took her place at the helm. Lyn brings with her a strong strategic focus on service delivery to customers andsupportforherstaff.Iwelcomeherandlookforwardtoarewardingpartnership.
Iwanttoclosewithapersonalthankyoutothestaff,newandlongerterm,whohavewillingly worked with me to ensure that services to the community continue to be delivered in the most appropriate manner.
Pages10and11ofthisreportcontaindetailsrelatingtokeyprojects,whichwillreshape,refurbishandrejuvenatethisdistrictformanyyearstocome.
Linton ReynoldsCOMMISSIONER
Statement from the Commissioner
City of Canning Annual Report 2012/2013Page 5
Joe Delle Donne OAM JP Mayor
Mason Ward
Cr Robert Morgan
Deputy Mayor Bruce Mason
Cr Bev OlsenCr Stuart Clarke JP Resigned - 7 February 2013
Cr Graham Barry Cr Lindsay Elliott Cr Stephen Boylen Resigned - 24 July 2013
Bannister Ward
The Former Minister for Local Government, the Hon John Castrilli MLA, following the report tabled in Parliament on 15 November 2012, suspended the City of Canning’s Mayor and Councillors, effective from 27 November 2012. A further inquiry panel has been appointed to assess in more detail, the City’s governance issues and matters for improvement.
Nicholson Ward
Cr Megan O’Donnell
Cr Mary DalyCr Tim Dowsett JP
Beeliar WardMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARD
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BANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARD
QUEENS PARK
EAST CANNINGTON
ST JAMES
LEEMING
CANNING VALE
FERNDALE
WILSON
CANNINGTON
BENTLEY
SHELLEY
WELSHPOOL
MASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARDMASON WARD
NICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARDNICHOLSON WARD
BANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBANNISTER WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARDBEELIAR WARD
QUEENS PARK
EAST CANNINGTON
ST JAMES
LEEMING
CANNING VALE
FERNDALE
WILSON
CANNINGTON
BENTLEY
SHELLEY
WELSHPOOL
PARKWOOD
WILLETTON
ROSSMOYNE LYNWOOD
RIVERTON
Ward Boundary ChangeCurrent Boundaries
City of Canning Wards
Council
City of Canning Annual Report 2012/2013Page 6
Mr Linton Reynolds has been appointed as Commissioner to act as the Council for the City of Canning. Mr Reynolds has extensive local government experience, having previouslybeentheMayorofArmadaleforfiveterms.
The Commissioner is responsible for:
• Providing leadership and guidance to the Canning community; • Assisting in communication between the City of Canning and the Canning
community; • Representing the interests of the City of Canning; • Managing Council Meetings without favouritism or bias and ensuring that they are
conducted in an orderly and compliant manner; • Carrying out civic and ceremonial duties, including conducting citizenship
ceremonies; and • Liaising with the City of Canning’s Chief Executive Officer regarding the City’s
performance.
The Commissioner also has a role in developing and communicating policies, strategies andprojectswhichpromotethesocial,economic,environmentalandculturalwell-beingof the City of Canning.
Council Member Ordinary Council Special Council Audit Committee Council ForumsMeeting Meeting Meeting
9 total 3 total 1 total 20 totalMayor Joe Delle Donne JP 7 3 1 18Cr Bruce Mason 9 3 1 11Cr Lindsay Elliott 8 3 1 16Cr Graham Barry 9 3 1 18Cr Stephen Boylen 8 3 1 16Cr Robert Morgan 7 2 0 5Cr Stuart Clarke JP 8 2 0 2Cr Bev Olsen 9 3 1 5Cr Tim Dowsett 8 0 1 0Cr Mary Daly 7 3 1 0Cr Megan O'Donnell 9 3 1 9
Ordinary Council Special Council Audit Committee Agenda Settlement Meeting Meeting Meeting Briefing
Linton Reynolds AM JP 12 5 2 6
COUNCILLORS ATTENDANCE AT MEETINGS
COMMISSIONER REYNOLDS ATTENDANCE FOR 2012/13 (from 27 November 2014 to 30 June 2013)
Council
Linton Reynolds AM LGM JP
City of Canning Annual Report 2012/2013Page 7
ItiswithpleasurethatwepresenttheCityofCanningAnnualReportforthe2012-2013financialyear.
The appointment of Commissioner Linton Reynolds, to replace the suspended Council, inNovember2012and thecommencementofournewChiefExecutiveOfficer,LynRussell PSM in June 2013, hasmarked the beginning of a new era for theCity ofCanning.
This, together with the conclusion of the DepartmentalAuthorised Person’s InquiryinNovember2012,hasresulted inawiderangeof improvements,which isradicallychanging the way the City of Canning manages its business.These include: 1.GovernanceThe development of a dedicated Governance team who are implementing a comprehensive review program to improve the governance arrangements at the City of Canning.
2.InternalProcessesStructural and enhancement changes have been undertaken in a variety of areas, such as a compliant new records management software system and improvements in Council businesspapers.Anumberofofficerpositionshavebeennewlycreatedtooptimisethecapabilities of the system improvements.
3.CustomerServiceA new customer service philosophy along with dedicated staff training is being developed; this will be supported by new customer relationship management technology that will enable us to better manage our contact with customers.
4.PlanningThe review of the City’s existing Town Planning Scheme is well underway. A new framework will ensure an innovative planning scheme, underpinned by an associated Local Planning Strategy that will set the long term direction for sustainable land use in the City.
5.Employee engagementWe are creating an array of initiatives to nurture, support and enhance the culture of the organisation. The team at Canning is one of our most valuable assets and as such we mustnurtureandencouragethemtoflourish.
TheyeartheCityhashadtomanagesignificantexternalinfluences,suchasthefutureoutlookofacross-the-boardLocalGovernmentreform,aswellastheongoingInquiryinto the City of Canning. However, despite these diversions, our staff have remained committed to delivering the highest level of services and facilities to our community. Our new Integrated Planning Framework was implemented with great success. Itincorporates our Strategic Community Plan and Corporate Business Plan, which clearly articulates the future of the City. These plans are supported by internal business strategies including Asset Management, Long Term Financial Forecasting andWorkforce Planning.
A comprehensive Land Asset Review, which concentrated on all the City’s land and building assets, was also completed. The assessment of key land development prospects allows theCity to develop opportunities tomaximise the benefit of theseassets and create additional services and revenue streams, in the interests of our ratepayers.
Chief Executive Officer Report
Lyn Russell PSM
Andrew Sharpe
City of Canning Annual Report 2012/2013Page 8
The state of the art Cannington Leisureplex was successfully opened this year and has created a benchmark in local design and service delivery. The Leisureplex is also a key development that will attract future interest and investment for the proposed CanningCityCentreproject.TheCanningtonLeisureplexwascompletedatacostof$37millionandprovidescontemporarymulti-purposefacilities,recreationandlearningopportunities for our residents.
We continued to work collaboratively with other municipalities across the State, in the sharing of our knowledge and resources. This has included providing assistance to theShires ofGoomalling andNgaanyatjaraku in the areas of financial reporting,administration, environmental health and building services.
IncooperationwiththeDepartmentofHousing,theplanningfortherejuvenationoftheBrownliePrecinctinBentleyhasadvanced;thiswillpotentiallyresultinupto1700newdwellings. We also continued to work on the multi-million dollar investment in upgrading the Burrendah Precinct facilities. Both these projects are focused on forming cohesivecommunities with a stronger sense of local place and we look forward to continuing theseprojectsinthecomingyear.
The City has proudly developed an excellent calendar of events that are provided to the community free of charge. A highlight of the year was the Canning World Art Exchange, theBlessingoftheRiverandtheNewYear’sDaycommunityconcertandfireworksatShelley foreshore. Our events calendar for the coming year is well in the development stageandIlookforwardtoaprogramthatengagesourcommunity,showingourdiversityand sense of celebration.
We also take this opportunity to extend our genuine appreciation to Commissioner Linton Reynolds, for his high level of leadership, ongoing encouragement and good governance of the City of Canning.
Finallywewouldliketopaytributetotheprofessionalism,enthusiasmandresilienceof theCityofCanning’semployees.Theyhaveexperiencedsignificantchallengesinrecent times and are now facing some uncertainty through the local government reform agenda. Their passion for their City is inspiring.
Our commitment to them, for the coming year, is to provide a clear sense of purpose and direction. Their energy and dedication is unwavering and we looking forward to a prosperousandexciting2013/14year.
Andrew Sharpe ACTINGCHIEFEXECUTIVEOFFICER From1July2012to4June2013
Lyn Russell PSM CHIEFEXECUTIVEOFFICERFrom4June2013
Chief Executive Officer Report
City of Canning Annual Report 2012/2013Page 9
Snapshot of the Year Past
Reform AgendaThe City of Canning was informed by the State Government in July 2013of the proposed widespread changes to local government arrangements in metropolitan Perth. The plans, which include reducing the number of local governments from 1 July 2015 willsee approximately 60% of the Cityof Canning merge with the City of Gosnells, and some Canning suburbs tothenorthandwestjoiningwithothernew surrounding local government entities.
Each local government authority was asked to prepare a submission responding to the proposed boundary changes. This submission was delivered to the Local Government AdvisoryBoard(LGAB)on4October2013.
A new model of 15 councils wasproposed by the State Government in November,andasaresulttheCitywilllose parts of;
• Welshpool
• Riverton
• CanningVale
• Leeming
• Wilson
and all of;
• Rossmoyne
• Willetton
• Shelley
• andBentley.
The new boundaries proposed would impact upon the Riverton Leisureplex, Riverton Library, Care Services which delivers meals on wheels, aged care packages, senior’s accommodation, approximately$6millionoffundingforHome and Community Care Services, Canning Lodge for the elderly and a number of other services which are very important to the Canning community. The new boundaries will also result in the loss of the Ranford RoadWasteTransferstation,amajorassetfortheCityofCanning/Gosnells.
It isnowuptotheLocalGovernmentAdvisory Board (LGAB) to gather input from local governments and their communities and conduct a review before final recommendations aremadein2014.
City of Canning Annual Report 2012/2013Page 10
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Cityof Swan
Shire ofMundaring
City ofStirling City of
Bayswater
Town ofBassendean
City ofBelmont
Shire ofKalamunda
City ofGosnells
City ofArmadale
City ofCanning
City ofCockburn
Shire ofSerpentine-Jarrahdale
City ofKwinana
Town ofVictoria
Park
City ofPerth
City ofSouthPerth
City ofMelville
CurtinUniversity
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GREAT EASTERN HWY
ARMADALE RD
ROE
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ARMADALE RD
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Canning/Gosnells
Legend
")E tertiary education facilities
proposed local government areas
existing LGAs
waterway
cadastre (>1ha)
Metropolitan Region Scheme reserves
other regional roads
parks and recreation
public purposes
primary regional roads
railways
state forests
Index to map area
Produced by:Mapping & GeoSpatial Data BranchDepartment of Planning, WAOn behalf of:Dept of Local Government and CommunitiesCopyright © November 2013
\\Nts-per\magsprojects\Perth\LGA_ProposedAreas_2013\Canning_Gosnells.mxd
Base information supplied by:Western Australian Land Information AuthorityLI 430-2009-6
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Disclaimer: Coastal local governments include offshoreisland land areas but not ocean. Riverine localgovernment mid-river boundaries are approximate only.
PerthAirport
GREAT EASTE RN HIGHWAY BYPASSMetropolitan Local Governments
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ACOURT RD
WARTON RD
Snapshot of the Year Past
Proposed New Boundaries of City of Canning/ Gosnells
City of Canning Annual Report 2012/2013Page 11
Land Asset ReviewDuring the year the City undertook a process to review all of its land holdings (freehold and reserved land) with the aim of identifying how to optimise the use of this land as potential additional income streams. The review has identified the capacity to increasethe return on investment and in some casesselllandand/orcommencethestrategic purchase of other income generating investments. An initial work plan has been developed which focuses on optimising the return on various land holdings and/or sellingland. The overall intent of this long term program is to reduce the reliance on rates as the primary source of income and leveraging from current community assets held and developed over time.
Integrated Planning FrameworkThe City has established its integrated Planning and Reporting Framework,inlinewiththelegislatedrequirementsof Local Government reform. This involved the preparation of the City’s first Strategic Community Plan. Thiswas followed by aligning a Corporate Business Plan with that strategy and a framework that initiates a Long Term Financial Plan, including thedevelopment of Asset Management Plans for all of Council’s assets, preparation of a Risk Management strategy and initiation of a Workforce andaCommunicationandInformationTechnology Plans. These were all requirementstobeinplaceby30June2013.Thisworknowformsthebasisfor ongoing review and development of these initiatives in a way that provides for more informed decision making.
Local Planning Strategy and Scheme ReviewThe review aimed to develop a best practice Local Planning Strategy for the City of Canning, through establishing a number of relevant sub-strategies and combining them into the Local Planning Strategy.
The sub-strategies will cover areas such as:
• housing
• environment
• water management
• public open space
• transport
• commercial and activity centres
• andcommunityservices/facilities
The development of a Local Planning Scheme is conducted concurrently with the development of the Local Planning Strategy. However, the Local Planning Strategy’s outcome is requiredprior to finalising thenewScheme. The City is also currently doing a number of strategic scheme amendments to bring the current scheme up to date and more in line withtheModelSchemetext.Followingthese amendments, an audit of our current scheme will be conducted to determine compliance with the model scheme text and then drafting of the new scheme will start.
Snapshot of the Year Past
Environment Management StrategyBushland, trees
Water Management Strategy
Rivers
Public Open Space Strategy Parks, playgrounds
Commercial and Activity Centre StrategyShopping, cafes, town centres
Housing Strategy
Apartments, single storey homes
Integrated Transport StrategyTrains, buses, bicycles, walking, cars
Community Infrastructure Strategy
People, libraries, leisure centres
Infrastructure Services Assess-ment
City of Canning Annual Report 2012/2013Page 12
Canning City CentreThe Canning City Centre is a designated Strategic Metropolitan City Centre in key metropolitan planning policies, such as Directions 2031and Beyond, State Planning Policy 4.2 Activity Centres for Perth andPeel.During2012/2013theCityhasdeveloped the Canning City Centre (Activity Centre) structure plan as a key part of the Canning City Centre Urban Regeneration Strategy. Thisstructure plan has been prepared for exhibition and formal comment from key private and public stakeholders.
The Structure Plan, which sets the scene for the future of the Centre, acts as a framework or enabling mechanism to attract much needed public and private investment. Itis also a planning tool that guides development assessment. A clear vision for the centre was established through this process, which is:
A re-energised City Centre with a community heart that is connected, accessible, vital and resilient.
The Structure Plan, along with other documents that make up the overall urban regeneration strategy, represents a fundamental shift in approach to the way that further development of the Centre needs to be managed. It provides for Councilto play a vital role as the facilitator of investment and an active place manager. Council is continuing to invest in the City Centre through commencing the initiating of the additional work identified in the implementation planfor the City Centre.
Brownlie RegenerationCouncil has been working in partnership with the Department of Housing for a number of years to revitalise the Bentley Brownlie Towers precinct. This urban regeneration project is focussed on forming acohesive community with a stronger sense of place, through rationalisation of community uses and incorporation of commercial operations to form mixed-use development that may see the developmentofup to1700dwellingsacross a site of approximately 25hectares.
During the last year a draft Structure plan and a scheme amendment have been prepared to provide the statutory framework which will guide the implementation of this development. The process has included engagement with community stakeholders.
It is anticipated the development willinclude a mix of private and affordable housing, a neighbourhood centre, revitalised community facilities and demonstrated urban sustainability principles and practices.
The revitalisation will result in a more balanced social mix in the local population and an expanded ratepayer base for the City. A significantlyimproved physical environment that will demonstrate urban infill canproduce more housing and diverse options to meet the needs of a rapidly growing metropolitan population.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 13
Burrendah PrecinctA Master Plan established during 2012/13 for the potential futureredevelopment of the Burrendah Precinct was received by Council onthe9July2013.ThePlanwillactas guide for any future planning or development in the area.
Council accepted an offer from the State Government of dollar for dollar matching funding of $1,000,000towards the refurbishment of the former Willetton Sports Club (WSC) and associated facilities. The City has allocated these matching funds inthe2013/14Annualbudgetforthispurpose. This funding is intended to be spent on the refurbishment of the WSC, associated change rooms and potentially the construction of a new building for the Willetton Bowling Club (WBC).
The refurbishment of the WSC is intended to enable existing sporting clubs to hire the upgraded building. It will potentially enable communitygroups to also lease part of the building.
It is anticipated that a builderwill beappointed to commence construction workspriortoChristmas2013.
Strategic Community PlanInJanuary2013theCouncilendorsedits first Strategic Community Planwhich was based on a broad range of community engagement.
ThisPlanwasrequiredtobepreparedunder the Department of Local Government’s Integrated PlanningFramework. This new Plan andreporting for the City’s Corporate BusinessPlan2013/2014andreplacesthecurrentPlanfortheFuturefrom1July2013.
This is a 10 year plus StrategicCommunity Plan which articulates a vision and sub-visions based around community aspirational themes, and establishes goals based on key issues that were identified duringthe engagement process with our community.
The five themes identified within theplan are:
• Natural Environment –Our placein nature
• OurCommunity–Connectingandsupporting people
• Built Environment – Living andmoving around
• Prosperity – Working and doingbusiness
• Leadership and Governance –How we decide
The Strategic Community Plan will guide all other planning across the City and become the primary documentthattheCityisjudgedonbyestablishing a framework of measures of success. The Plans implementation will be monitored and reviewed every 2years.
This important document has also set the framework for informing resourcing choices and other key strategies such as the workforce plan, asset management strategy and plans plus service provision with the aim of aligning resource capabilities with in identifiedcommunityaspirations.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 14
Low Carbon StrategiesWith rising energy prices and the challenges associated with Climate Change, the City is proactively exploring ways to address these issues. The City has established a “UtilityRevolvingFund”forfuturesolar,waterandenergyefficiencyprojects.
TheUtilityRevolvingFundprovidesanefficient,transparent,andaccountablemechanism through which the City can invest in water & energy efficiency.Projectswillbeidentifiedfromarangeof water & energy saving opportunities which are available across City properties which are justified bybusiness case rules, with financialsavings being returned to the fund to provide for further energy efficiencyprojectimprovements.
Building In April 2012 the new BuildingAct commenced operation which set approval timeframes for local government to issue building permits (10daysforcertifiedapplicationsand25 days for uncertified applications).In the 12 months since the BuildingActcame intooperation (from1April2012 to 31 March 2013) the Cityhad processed 1065 permitswith anaverageapproval timeof10daysforcertified applications and 20 daysfor uncertified applications. Despitestaffing resource shortages in thearea the City was able to meet the requirementsofthenewlegislation.
In the2012/13financialyear theCityapproved 2034 building permits, anincrease on 1647 building permitsapprovedin2011/12.
Building Income for 2012/13 was$626,335 which represented adecrease from 2011/12 whereby$720,106 was received. This wasprimarily due to the reduced fees schedule imposed as a result of the new Building Act, that set reduced fees forapplicationscertifiedbyconsultantbuilding surveyors.
PlanningThe state government’s Development Assessment Panels (DAPs) were introduced in 2011. A total of 8applications located within the City of Canning were approved by the Metro Central Joint Development AssessmentPanelin2012/13.
In the 2012/13 financial year theCity approved 631 developmentapplications, an increase on 618development applications approved in 2011/12.
Planning Income for 2012/13increased substantially to $930,147from$745,532in2011/2012.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 15
Environmental Health & ComplianceDuring 2012/13 the City’sEnvironmental Health and Compliance teams continued to deliver services that promote and protect public health of the community and respond effectively to community complaints.
The Department dealt with over 700 requests from the communityfor complaint resolution, involving issues including food safety, offensive odours, pest control, mosquitoes,asbestos management, dilapidated fences, excessive storage of materials on residential properties, dangerous buildings, construction noise, dilapidated swimming pools and more.
The City’s Environmental Health and Compliance Team aims to work with the community to resolve compliance matters and takes an educational approach. However in a minority of cases the City needs to take enforcement action to resolve matters. During2012/13theCityinitiatedthreelegal actions resulting in fines of$125,000.
The Department delivered a successful Mosquito TreatmentProgram,whichfocusedonmosquitolarvae treatments during the warmer months (November to March). OurEnvironmental Health Officers kepta close eye on tidal conditions and were able to respond effectively to significant mosquito breeding duringDecember, January and February.Larvae treatments continued during these months which minimised the numbers of adult mosquitoes in theCanning River Regional Park to reduce the likelihood of Ross River Virusinfection.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 16
Security and Public SafetyPatrol and Security ServicesTheCity’s24hour,7dayaweekPatroland Security Services responded to over 6,500 incidents in 2012/13,continuing to provide peace of mind to the local community through security patrols and assistance in the areas of litter, parking, off-road vehicles, dogs and fire control aswell as safeguarding and protecting community infrastructure.
Emergency ManagementThe City’s commitment to ensuring the safety of our residents has resulted in the appointment of a dedicated Emergency Management ProjectOfficer.
eWatchThis community safety initiative connects residents to their local police and City Council and keeps everyone informed of crime trends, emerging issues and safety initiatives in the area. The City has coordinated a successful program locally for some years and is pleased to support WA Police in their roll-out of a Statewide eWatch program in 2013/2014through continued involvement and participation.
Neighbourhood WatchThe City coordinates a small group of dedicated Neighbourhood Watchvolunteers who support crime prevention activities in the area.
These include letterbox drops of identified crime hotspots, thedistribution of personal property marking kits, promotion of the eWatch initiative and promotional activities at local shopping centres and community events, including the Canning Show.
Neighbourhood Watch State BoardThe City’s Neighbourhood WatchOfficer has continued to providerepresentationontheNeighbourhoodWatchStateBoardduring2013/2014,providing an excellent opportunity for Canning to be actively involved in the ongoing re-vitalisation of the program.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 17
Care ServicesThe Care Services building had its Official Opening on the 27thSeptember 2012 attended by theMayor, Councillors, local dignitaries and invited guests from funding agencies.
Care Services experienced continued growth during 2012-2013, withrecurrent funding secured from the Western Australian Health Department Home and Community Care (WA HACC) to increase the provision of domestic assistance and home and garden maintenance to our community clients.
Several innovative programs were implemented in the Day Centres, including more emphasis on providing access to external social activities, and also the very successful “Sunday Roast” program was introduced, enabling carers to achieve respite while their family members attend a traditional Sunday meal-based activity at the Centre.
Canning Lodge continued to provide optimum care to its residents and also hosted fun events such as the FarmyardonWheelsFamilyFunDayin October, and Australia’s Biggest Morning Tea in May.
Client and Resident Forumsundertaken helped to identify and suggest areas for improvement which will help us to plan services for the coming year, with the usual strong emphasis on continuous improvement.
Customer ServicesThe City aims to continuously improve and focus on customer service delivery to its residents. This has included many key transactions for a wide range of services including answering customer queries, lodgingcustomer requests and applications,handling and reconciling payments, managing bookings for external and internalcustomers.During2013/2014the City has developed an operational business plan to ensure the City meets its promise and commitment of “AboveAll – Service” and continuesto improve service delivery across all areas. Work in partnership with key Council service units to maximise their service performance and efficiencyusing modern media and systems.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 18
Recreation ServicesKidSport–theCity’sClubDevelopmentsection has administered submissions from387Canningjuniorsportsplayersfor assistance towards participating in community sport from funds provided by the Dept of Sport & Recreation. Grants were made to various sporting clubs with the largest helping the Rossmoyne Bowling Club create a further two synthetic bowling greens and roof over one to enable year round activities. Riverton Rossmoyne Junior Cricket Club also received a grant towards a new equipmentshed. Equipment grants were madeto a variety of community and sporting organisations. The Club Development section has worked with all community organisations, not just sportinggroups, and offered assistance with governance, volunteers and club management.
PlanningStudiesfortheCanningValesports grounds on the old sand pit sites adjacent to the eastern side ofJandakot airport have taken place in conjunctionwiththeDeptofPlanningand Infrastructure and the Dept ofSport and Recreation to ascertain what facilities have been accommodated. A final report isexpectedby theendof2013.
Usage of the City’s halls andcommunity centres has been constant with facilities provided for a variety of meetings, social functions and community activities.
Leisure ServicesCannington Leisureplex had a successful first year of operationwith over 270,000 visits. The Centreopened to the public on the 5th September2012.Thefacilitycontinueto attract local participation in a broad rangeofsportingcompetitions,fitnessprograms and community programs. Like Riverton Leisureplex it is open to the community 7 days a week.
The geothermal bore installed as part of the facility is intended to provide energy efficiencies in water heatingover the life of the facility.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 19
Library ServicesThe highlight of the year was the opening of the new Cannington Library, within the Cannington Leisureplex. The Cannington facility replaces the Queens Park Library. With much more space, longer opening hours, state-of-the-art design, and a bright and welcoming ambience, Cannington was an immediate hit with the local community, and has continued to be a drawcard throughout the year. Significant increases in lending,attendance at extension programs for children and hours booked on public access computers, have been the result by comparison with its predecessor.
The City’s other libraries in Riverton, Willetton, and Bentley have continued to be well-used and valued by library members. 439,000 visits to librarieswere recorded during 2012/2013,with the majority of these to borrowmaterials from the extensive collections that include books (in ordinary and large print, and including a variety of community languages), talking books, magazines,DVDs,videos,musicCDs,andjigsawpuzzles.
The libraries are also visited for a variety of other services. To use a computer for internet access, or to prepare a document, to attend a storytime or a school holiday program for children, to study or to hear a guest speaker, to participate in a book club or to seek assistance from one of the volunteer services hosted by the Library Service (Justice of the Peace, TaxHelp, and the Read Write Nowliteracy program).
Services are not restricted to what can be accessed inside the library buildings. ‘BooksonWheels’deliversloans to City residents who are not able to come to the library, and the ‘virtual library’ provides 24/7 access,via the City’s website, for consulting the catalogue, for reserving items, and renewing loans, for using a selection of online databases or for seeking online assistance with homework and study via the YourTutor service. Thecommencement of an ebook lending service, as part of a statewide public library initiative, has proved very popular with library members.
Snapshot of the Year Past
City of Canning Annual Report 2012/2013Page 20
Register of ComplaintsTheLocalGovernmentAct1995section5.121requires,theCity’scomplaintsofficer tomaintaina register of complaintswhich recordsall complaints thathave been considered by the Local Government Standards Panel and resulted in action under section 5.110(6) of thatAct. For the period covered by thisAnnual Report there were no complaints recorded.
Freedom of InformationTheFreedomofInformationAct1992(theFOIAct)givesmembersofthepublicthe right to access documents held by local governments, subject to somelimitations. The term documents, as defined in the FOIAct, includes paperrecords,plansanddrawings,photographs,taperecordings,films,videotapesorinformationstoredinacomputerizedform.AccessrightsundertheFOIActdo not apply to documents which are already publicly available for inspection or purchase. Members of the public can also apply for personal information about them that may be contained in City documents to be amended if that information is inaccurate, incomplete, out of date or misleading. The City of Caning prepared, as required by section 96 of the FOI Act, an up-to-dateinformation statement and made it available to the members of the public online and in hard copy.
Employee Renumeration
2011/12 Annual Cash Salary 2012/133 $100,000to$110,000 26 $110,001to$120,000 45 $120,001to$130,000 72 $130,001to$140,000 21 $140,001to$150,000 21 $150,001to$160,000 64 $160,001to$170,000 11 $170,001to$180,000 11 $250,001to$260,000 1
National Competition PolicyTheCity of Canning is classified as aCategory 1 LocalGovernment undertheNationalCompetitionPolicy,whichdefinesabusinessactivityasonethatgeneratesanannualincomeoffeesandchargesexceeding$200,000.TheCityhas continued with established Business Plans for all various activities and to applythePrinciplesoftheNationalCompetitionPolicy.TheseBusinessPlanswereprepared toCompetitiveNeutralityPrincipals.This is tosatisfy theCitymeets the essential criteria of the Policy.
Statutory Compliance
City of Canning Annual Report 2012/2013Page 21
Local LawsTheCity’s local lawsaresubject toaprocessofsystematic review.No locallawsweregazettedbytheCityduring2012-13andnolocallawswererepealedbytheCityduring2012-13.TheCitydidnotprivatiseanyactivitiesin2012-13with no obligations for structural reform.
Public Interest DisclosureThePublic InterestDisclosureAct 2003promotesaccountabilitywithin stateand local government agencies and organizations by facilitating the disclosure of public interest information involving misconduct, offences, misuse of public resources or risks to public health or safety. The Act aims to protect whistleblowers who make public interest disclosures to appropriate authorities. As a public authoritycoveredbythePIDAct,theCityofCanningisrequiredtoinvestigatedisclosures, take any necessary action, keep the whistleblower informed regardingtheprogressandoutcomeoftheinvestigation.Undersection23ofthePIDActtheCEOoftheCityofCanning,astheprincipalexecutiveofficerofthepublicauthority,isrequiredtoprovideinformationannuallytothePublicSector Commissioner on the number of public interest disclosures received over the report period, the results of any investigations conducted as a result of the disclosures and action, if any, taken as a result of each investigation and other matters as may be prescribed. The City of Canning currently has three delegations for Public Interest Disclosure Officers. Since the last publishedannualreport,nodisclosureshavebeenmadeunderthePIDActattheCityofCanning.
Disability Access and Inclusion PlanTheCityrevieweditsDisabilityAccessandInclusionPlan(DAIP)andadoptedtherevised2012-2017Planon11December2012.
The Plan was lodged with the Disability Services Commission shortly thereafter asrequiredbylegislation.
Theobjective of thePlan is to continueon the path to improveaccess andinclusion to the City’s buildings, facilities and services for people with disability.
This Plan is available for viewing on the City’s Web Page
www.canning.wa.gov.au
Compliant Record KeepingThe rollout of the new Electronic Document & Records Management System, ‘HPTRIM,’®in2012enableddecentralisedrecordkeeping.‘HPTRIM’recordsare created, managed and maintained over time and disposed of in accordance with principles and standards issued by the State Records Commission. The City’sRecordkeepingPlanof2009iscurrentlyintheprocessofbeingupdatedforapprovalbytheStateRecordsOffice.ThePlansetsoutthemannerinwhichrecordsaretobecreatedandhowtheyaretobekept.Itprovidesanaccuratereflection of the disposal arrangements, policies, practices and processes.Records Management training for new staff is included as part of the City’s induction program and existing staff are provided with ongoing training and development in record keeping responsibilities.
Statutory Compliance
City of Canning Annual Report 2012/2013Page 22
Legislation gazetted on 26August 2011, introduced theStateGovernment’sdesire for Local Governments to conduct an increased level of strategic planning andlongterm(10year)budgeting.
The Department of Local Government’s Reform process included amendments totheAdministrationRegulationswhichintroducedtheIntegratedPlanningandReportingFramework,withtherequirementsfortheCitytoprepareaStrategicCommunityPlanandaCorporateBusinessPlan,thattogetherformthe‘PlanfortheFuture’,effective1July2013.TheCityimplementedtheserequirementsbefore the prescribed date of 30 June 2013. Future annual statements willreportprogressusingtheCity’sIntegratedPlanningandReportingFramework.
Forthe2012/2013year,thefollowingmajorprojectsoftheCity’spreviousPlanfortheFutureisprovidedunderthetransitionalprovisions.
• CaladeniaGroveSubdivision–Theremaining42ofthe137residentiallotsdevelopedweresoldin2012/13.Theproceedshavebeentransferredtothelandandbuildingreserve,tobespentonmajorcapitalworks.
• CanningtonLeisureplex–ThismajorprojectwassuccessfullycompletedontimeandwithinbudgetinAugust2012.
• Infrastructure Maintenance Program –With an on-going commitment toimprove the appearance and condition of the City’s streetscapes, funds continuedtobeallocatedandexpandedduring2012/2013.
• Centenary Park Public Open Space contamination site investigation was recommenced with a view to improving the future development of this site
• CanningCityCentre–Inordertohelprealisetheopportunitiesandpotentialof the Canning City Centre, the City commenced the development of a Canning City Centre (Activity Centre) structure plan within an overarching Urban Regeneration Strategy. The Structure Plan sets the scene forthe future of the Canning City Centre, which is of strategic metropolitan significanceintheSouthEastCorridorofPerth.TheStrategyconsiderstheeconomic, social, natural environment and transport context as fundamental components of the Canning City Centre. The Structure Plan and Strategy act as a framework or enabling mechanism to attract much needed public and private investment and will guide development assessment.
• Contract Services –TheCity has continued its support to regional localgovernments by providing environmental health and financial reportingservicestotheShiresofNgaanyatjarrakuandGoomalling.
• AssistanceprovidedtoCommunityandSportingOrganisations–withcashandin-kindcontributions.Thisincludedreducedregistrationfeesforjuniorparticipants to encourage active lifestyle participation.
• Waste Management – The 2012/13 Budget contained an amount of$150,000forthedevelopmentofaWasteManagementStudyandStrategy,these works were recommenced during the year and will continue on into 2013/14.
Plan for the Future
City of Canning Annual Report 2012/2013Page 23
• The City of Canning offers an exciting range of event experiences using themesofArts andCulture,Multicultural andAboriginal Issues,HeritageandConservation,andFamilyFundaystoinspireandentertainresidentsofall ages. The City ran a number of community events such as:
• TheBlessingoftheRiverFestival
• NewYear’sDayCommunityConcertandFireworksonthe ShelleyForeshore
• CanningWorldArtsExchangewithperformingguests
• AustraliaDayCelebration-BigBreakfast
• FridayNightMovies
• AnzacDayMarch
• HarmonyDayConcert
• NAIDOCWeekand
• CarolsbyCandlelightintheCivicAmphitheatre.
Plan for the Future
City of Canning Annual Report 2012/2013Page 25
City of Canning Annual Report 2012-2013Annual Financial Statements
STATEMENT OF COMPREHENSIVE INCOME BY PROGRAMMEFOR THE YEAR ENDED 30 JUNE 2013
2011/2012 2012/2013 2012/2013ACTUAL NOTES ADOPTED ACTUAL
BUDGET$ $ $
EXPENDITURE(2,280,896) Governance (3,071,868) (3,310,672) (2,646,048) Law, Order, Public Safety (2,890,283) (2,825,125) (1,651,764) Health (2,288,756) (1,918,584)
(13,593,331) Education and Welfare (15,224,719) (15,426,027) (1,528,705) Housing (817,302) (988,487)
(18,397,746) Community Amenities (19,954,145) (17,539,479) (28,814,222) Recreation and Culture (35,183,106) (33,399,799) (16,012,809) Transport (16,114,438) (17,165,571)
(9,330,853) Economic Services (1,560,516) (3,136,375) (2,882,115) Other Property and Services (4,261,116) (4,276,139)
(97,138,489) (101,366,249) (99,986,259)
REVENUE47,720,512 General Purpose Funding 47,171,729 47,731,360
67,624 Governance 74,805 150,116 219,329 Law, Order, Public Safety 234,205 255,751 364,119 Health 545,042 541,365
12,014,603 Education and Welfare 13,097,926 12,944,044 1,693,384 Housing 365,508 548,020
13,925,390 Community Amenities 14,364,255 14,905,113 8,320,919 Recreation and Culture 10,089,996 10,212,380
783,967 Transport 827,646 894,934 8,963,231 Economic Services 1,292,500 2,555,515 1,623,427 Other Property and Services 1,600,880 1,895,854
95,696,505 89,664,492 92,634,451
(1,441,984) Increase/(Decrease) (11,701,757) (7,351,808)
DISPOSAL OF ASSETS(142,385) Land and Buildings 2,6(a) - 10,679,273
38,062 Plant and Equipment 2,6(a) (522,331) 271,286 - Furniture and Equipment 2,6(a) 1,000 3,446
(104,323) Gain / (Loss) on Disposal (521,331) 10,954,005
OTHER ITEMS(197,429) Infrastructure Assets - Decrement (4,650,689)
14,409,552 Non-operating Grants, Subsidies and Contributions 2 6,449,725 5,596,873 - Compensation paid for Land - (1,990,075) - Repayment of SMRC Loan 33 (12,788,309) (12,845,647)
14,212,123 Total Other Items (6,338,584) (13,889,538)
12,665,816 NET RESULT (18,561,672) (10,287,341)
OTHER COMPREHENSIVE INCOME17,638,919 Changes due to Asset Revaluations 8 20,830,217
17,638,919 Total Other Comprehensive Income - 20,830,217
30,304,734 TOTAL COMPREHENSIVE INCOME (18,561,672) 10,542,876
This statement is to be read in conjunction with the accompanying notes.
Page 1
City of Canning Annual Report 2012/2013Page 26
City of Canning Annual Report 2012-2013Annual Financial Statements
STATEMENT OF COMPREHENSIVE INCOME BY NATURE AND TYPEFOR THE YEAR ENDED 30 JUNE 2013
2011/2012 2012/2013 2012/2013ACTUAL NOTES ADOPTED ACTUAL
BUDGET$ $ $
EXPENDITURE(40,705,299) Employee Costs (46,846,221) (47,200,446) (27,548,484) Materials and Contracts (26,098,347) (22,112,228) (15,856,805) Depreciation of Non-Current Assets (15,826,550) (17,351,813)
(3,531,486) Utility Charges (Gas, Electricity, Water, etc) (3,743,375) (4,431,421) (1,993,328) Insurance Expenses (2,116,558) (2,165,521)
(113,124) Interest Expenses (341,877) (599,457) (7,389,964) Other Expenditure (6,393,321) (6,125,374)
(97,138,490) (101,366,249) (99,986,259)
REVENUE41,206,120 Rates - General 12(a) 42,826,292 42,894,595
4,362,297 Interest Earned 16 3,620,795 3,125,179 13,577,132 Operating Grants, Subsidies and Contributions 12,890,425 14,150,072
8,111,182 Service Charges 512,181 1,809,109 26,163,410 Fees and Charges 15 27,974,642 28,515,348
2,276,365 Other Revenue/Income 1,840,157 2,140,148
95,696,506 89,664,492 92,634,451 DISPOSAL OF ASSETS
(142,385) Land and Buildings 2,6(a) - 10,679,273 38,062 Plant and Equipment 2,6(a) (522,331) 271,286
- Furniture and Equipment 2,6(a) 1,000 3,446 (104,323) Gain / (Loss) on Disposal (521,331) 10,954,005
OTHER ITEMS(197,429) Infrastructure Assets - Decrement - (4,650,689)
14,409,552 Non-operating Grants, Subsidies and Contributions 2 6,449,725 5,596,873 - Compensation paid for Serpentine Trunk Main Land - (1,990,075) - Repayment of SMRC Loan 33 (12,788,309) (12,845,647)
14,212,123 Total Other Items (6,338,584) (13,889,538)
12,665,816 NET RESULT (18,561,672) (10,287,341)
OTHER COMPREHENSIVE INCOME17,638,919 Changes due to Asset Revaluations 8 (g) - 20,830,217
17,638,919 Total Other Comprehensive Income - 20,830,217
30,304,734 TOTAL COMPREHENSIVE INCOME (18,561,672) 10,542,876
This statement is to be read in conjunction with the accompanying notes.
Page 2
City of Canning Annual Report 2012/2013Page 27
City of Canning Annual Report 2012-2013Annual Financial Statements
STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2013
2011/2012 2012/2013ACTUAL NOTES ACTUAL
$ $CURRENT ASSETS
4,799,991 Cash and Cash Equivalents 4 3,010,770 56,421,835 Investments 4 66,201,459
6,352,459 Trade and Other Receivables 26 6,664,209 204,380 Inventories 27 179,918
1,460 Other Assets 48,126 2,449,656 Land Held for Resale 19 -
70,229,781 TOTAL CURRENT ASSETS 76,104,482
NON CURRENT ASSETS7,000,000 Investments 4 -
578,281,687 Property, Plant, Equipment and Infrastructure 6(b) 598,301,304 4,144,868 Trade and Other Receivables 26 5,256,622 1,185,728 Development Costs 28 1,346,574
590,612,283 TOTAL NON CURRENT ASSETS 604,904,500
660,842,064 TOTAL ASSETS 681,008,982
CURRENT LIABILITIES16,604,497 Trade and Other Payables 29 14,259,999
4,576,170 Provisions 30 6,011,045 2,941,922 Borrowings 7(c) 2,203,791
24,122,589 TOTAL CURRENT LIABILITIES 22,474,835
NON CURRENT LIABILITIES1,137,770 Provisions 30 634,992 5,702,737 Resident’s Equity-Rossmoyne Retirement Village 31 5,722,737 3,560,628 Borrowings 7(c) 15,315,202
10,401,135 TOTAL NON CURRENT LIABILITIES 21,672,931
34,523,724 TOTAL LIABILITIES 44,147,766
626,318,340 NET ASSETS 636,861,216
EQUITY311,716,804 Retained Surplus 291,221,185 314,601,536 Reserves 8 345,640,031
626,318,340 TOTAL EQUITY 636,861,216
This statement is to be read in conjunction with the accompanying notes.
Page 3
City of Canning Annual Report 2012/2013Page 28
City of Canning Annual Report 2012-2013Annual Financial Statements
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013
RETAINED RESERVES ASSET TOTALNOTES SURPLUS (CASH REVALUATION EQUITY
BACKED) RESERVES
Balance As At 30 June 2011 286,067,316 46,917,329 263,028,961 596,013,606
Net Result 12,665,816 - - 12,665,816 Total Other Comprehensive Income - - 17,638,919 17,638,919 Transfer to / from Reserves 8 12,983,671 (12,983,671) - -
Balance As At 30 June 2012 311,716,802 33,933,658 280,667,880 626,318,340
Net Result (10,287,341) - - (10,287,341) Total Other Comprehensive Income 8 - - 20,830,217 20,830,217 Transfer to / from Reserves 8 (10,208,276) 10,208,276 - -
Balance As At 30 June 2013 291,221,185 44,141,934 301,498,097 636,861,216
This Statement is to be read in conjunction with the accompanying Notes.
Page 4
City of Canning Annual Report 2012/2013Page 29
City of Canning Annual Report 2012-2013Annual Financial Statements
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2013
2011/2012 2012/2013 2012/2013ACTUAL NOTES ADOPTED ACTUAL
BUDGET$ $ $
Cash Flows from Operating Activities
Payments(40,724,844) Employee Costs (46,544,877) (46,268,349)(24,832,812) Materials and Contracts (26,273,051) (23,549,352)
(3,531,486) Utilities (4,088,545) (4,431,421)(1,993,328) Insurance (2,116,558) (2,165,521)
(517) Interest Expenses (454,484) (599,457)(4,011,771) GST Payable (4,061,521) (3,413,420)(7,389,965) Other (26,363,558) (20,961,096)
(82,484,723) Total Payments (109,902,594) (101,388,615)
Receipts40,842,096 Rates 42,973,977 42,689,32613,577,132 Operating Grants, Contributions and Donations 14,530,425 13,075,513
4,281,758 Service Charges 512,181 520,16624,414,128 Fees and Charges 28,251,975 28,524,148
4,636,911 Interest Earnings 3,324,211 3,334,6223,709,304 GST Receivable 4,537,507 3,717,8833,721,437 Other Revenue 1,840,157 1,833,130
95,182,766 Total Receipts 95,970,433 93,694,788
12,698,043 Net Cash flows from Operating Activities 9 (13,932,161) (7,693,826)
Cash flows from Investing Activities
Payments14,409,552 Non-Operating Grants, Contributions and Donations 2 6,434,725 5,596,873
4,500,000 Net (Outflows) / Inflows for Purchase of Investments 4 5,500,000 7,000,000(29,663,644) Purchase Land and Buildings (5,506,737) (5,313,229)
(6,382,324) Purchase Infrastructure Assets (10,571,222) (11,511,158)(1,285,984) Purchase Plant and Equipment (4,381,253) (3,742,135)
(355,666) Purchase Furniture and Equipment (2,183,489) (709,163)- Underground Power (4,302,318)
(18,778,066) (15,010,294) (8,678,813)Receipts
- Disposal of Land and Building 6(a) - 13,128,929 - Disposal of Furniture and Equipment 6(a) 1,000 3,446
95,038 Disposal of Plant and Equipment 6(a) 713,026 375,070 95,038 714,026 13,507,445
(18,683,028) Net cash flows from Investing Activities (14,296,268) 4,828,632
Cashflows from Financing Activities198,754 Town Planning Development Schemes 32 (b) - (160,846)
(4,634) Loan Repayments- Principal 7(c) (309,820) (4,231,204)6,497,629.00 New Borrowings 7(c) 17,090,627 15,247,647
6,691,749 Net cash flows from Financing Activities 16,780,807 10,855,597
706,764 Net (decrease)/increase in cash held (11,447,622) 7,990,403
60,515,062 Cash at the Beginning of Reporting Period 4 61,319,928 61,221,826
61,221,826 Cash at the End of Reporting Period 9 49,872,307 69,212,229
This statement is to be read in conjunction with the accompanying notes.
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City of Canning Annual Report 2012/2013Page 30
City of Canning Annual Report 2012-2013Annual Financial Statements
RATE SETTING STATEMENT FOR THE YEAR ENDED 30 JUNE 2013
2011/2012 2012/2013 2012/2013ACTUAL NOTES ADOPTED ACTUAL
BUDGET$ $ $
REVENUES6,743,731 General Purpose Funding 4,592,427 5,062,409
67,624 Governance 74,805 150,116326,878 Law, Order, Public Safety 249,205 270,671364,119 Health 545,042 541,365
12,405,245 Education and Welfare 13,097,926 12,959,3491,693,384 Housing 365,508 548,020
14,004,923 Community Amenities 14,387,815 14,918,67317,592,429 Recreation and Culture 11,164,996 11,270,656
5,344,285 Transport 6,163,811 4,839,7468,963,231 Economic Services 1,292,500 2,555,5151,623,427 Other Property and Services 1,600,880 2,445,854
69,129,276 53,534,915 55,562,373EXPENSES
(2,280,896) Governance (3,071,868) (3,310,672)(2,646,048) Law, Order, Public Safety (2,890,283) (2,825,125)(1,651,764) Health (2,288,756) (1,918,584)
(13,593,331) Education and Welfare (15,224,719) (15,426,027)(1,528,705) Housing (817,302) (988,487)
(18,397,746) Community Amenities (19,954,145) (17,539,479)(28,814,222) Recreation and Culture (35,183,106) (33,399,799)(16,012,809) Transport (16,114,438) (17,165,571)
(9,330,853) Economic Services (1,560,516) (3,136,375)(2,882,115) Other Property and Services (4,261,116) (4,276,139)
(97,138,489) (101,366,249) (99,986,259)(28,009,213) (Decrease) (47,831,334) (44,423,886)
OTHER ITEMS(197,429) Infrastructure Assets - Decrement - (4,650,689)
- Compensation paid for Serpentine Trunk Main Land - (1,990,075)- Repayment of SMRC Loan (12,788,309) (12,845,647)- Change in Equity- Joint Venture - -
(28,206,642) (60,619,643) (63,910,297)ADD
197,429 Infrastructure Assets Decrement Written Back - 4,650,68991,783 Write Back Change in Non-Current LSL - (502,778)
- Change in Long Term Debtors - Underground Power - 304,897 (3,865,524) Write back Income Due to be Paid in Future Years - (1,602,218)
(104,323) Profit/(Loss) on Disposal of Assets 2,6 (521,331) 10,954,00515,856,805 Depreciation Written Back 18 15,826,550 17,351,813
199,361 Book Value of Assets Sold Written Back 6(a) 1,235,357 2,553,441(15,831,111) (44,079,067) (30,200,448)
LESS CAPITAL PROGRAMME(29,663,644) Purchase Land and Buildings 24 (5,506,737) (5,313,229)
(5,363,463) Infrastructure Assets -Roads 24 (8,884,436) (9,628,205)(990,606) -Recreation Facilites 24 (1,676,861) (1,882,953)
(28,255) -Other 24 (9,925) - (1,285,984) Purchase Plant & Equipment 24 (4,381,253) (3,742,135)
(355,666) Purchase Furniture & Equipment 24 (2,183,489) (709,164)- Underground Power (4,302,318) -
(4,634) Repayment of Debt-Principal 7(c) (2,941,925) (4,231,204)(7,103,738) Transfers to Reserves 8 (11,484,462) (24,046,254)
(34,559) Transfers Other (6,600) (167,350)(60,661,660) (85,457,073) (79,920,944)
LESS - FUNDING FROM20,087,409 Reserves 8 6,219,557 13,837,977
6,497,629 Loans 7 17,090,627 15,247,647226,809 Transfers Other - -
- Loan Funds Unspent - From previous year 2,632,105 2,632,105(2,632,105) Unspent Loan Funds 7 - (799,782)12,132,489 Opening Funds 23 16,529,285 16,627,350
(16,627,350) Closing Funds 23 406,197 (10,293,304)(40,976,780) TO BE MADE UP FROM RATES (42,579,302) (42,668,951)
This statement is to be read in conjunction with the accompanying notes.
Page 6
City of Canning Annual Report 2012/2013Page 31
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
1 SIGNIFICANT ACCOUNTING POLICIES
The significant policies which have been adopted in the preparation of the Financial Report are:
1.1.0 Basis of Accounting
1.2.0 The Local Government Reporting Entity
1.3.0 Non-Current Assets - Valuation and Depreciation
The Annual Financial Report is a general purpose financial report which has been prepared in accordance with applicable accountingstandards, other mandatory professional reporting requirements and the Local Government Act 1995, including the Local Government(Financial Management) regulations. The Annual Financial Report has been prepared on the basis of historical cost and does not takeinto account changing money values, or, except where stated, current valuations of non-current assets. The accounting policies havebeen consistently applied, unless otherwise stated.Local Governments are not required to comply with the following Australian Accounting Standards: i) AASB 114 “Segment Reporting” (see note 1.15.0 for exceptions and further detail)ii) AASB 124 “Related Party Disclosures”
All Funds through which the Council controls resources to carry on its functions have been included in the financial statements formingpart of this budget.
In the process of reporting on the local government as a single unit, all transactions and balances between those funds (for example,loans and transfers between Funds) have been eliminated.
All monies held in the Trust Fund are excluded from the financial statements, but a separate statement of those monies is disclosed.
Fixed AssetsEach class of fixed assets is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation orimpairment losses.
Mandatory Requirement to Revalue Non-Current AssetsEffective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the measurement of non-current assets at fair value became mandatory.
The amendments allow for a phasing in of fair value in relation to fixed assets over three years as follows:
(a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local government that are plant and equipment;and(b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local government – (i) that are plant and equipment; and(ii) that are –(I) land and buildings; or(II) infrastructure; and(c) for a financial year ending on or after 30 June 2015, the fair value of all of the assets of the local government. The Council commenced the process of adopting Fair Value for plant and equipment in accordance with the Regulations. The Councilhas been reporting other classes of assets at fair valuation even in previous year and accordingly there has been early adoption of FairValuation reporting by the Council.
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City of Canning Annual Report 2012/2013Page 32
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it isprobable future economic benefits associated with the item will flow to the Council and the cost of the item can be measured reliably.All other repairs and maintenance are recognised as expenses in the statement of comprehensive income in the period in which theyare incurred.
RevaluationRevalued assets are carried at their fair value being the price that would be received to sell the asset, in an orderly transactionbetween market participants at the measurement date.
For land and buildings, fair value will be determined based on the nature of the asset class. For land and non-specialised buildings,fair value is determined on the basis of observable open market values of similar assets, adjusted for conditions and comparability attheir highest and best use (Level 2 inputs in the fair value hierarchy).
With regards to specialised buildings, fair value is determined having regard for current replacement cost and both observable andunobservable costs. These include construction costs based on recent contract prices, current condition (observable Level 2 inputs inthe fair value hierarchy), residual values and remaining useful life assessments (unobservable Level 3 inputs in the fair valuehierarchy).
For infrastructure and other asset classes, fair value is determined to be the current replacement cost of an asset (Level 2 inputs in thefair value hierarchy) less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the alreadyconsumed or expired future economic benefits of the asset (Level 3 inputs in the fair value hierarchy).
Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offsetprevious increases in the same asset are recognised against revaluation surplus directly in equity. All other decreases are recognisedas profit or loss.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the netamount is restated to the revalued amount of the asset.
Those assets carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulateddepreciation and accumulated impairment losses, are to be revalued with sufficient regularity to ensure the carrying amount does notdiffer materially from that determined using fair value at reporting date.
In addition, the amendments to the Financial Management Regulations mandating the use of Fair Value, imposes a further minimum of3 years revaluation requirement. As a minimum, all assets carried at a revalued amount, will be revalued at least every 3 years.
Transitional ArrangementDuring the time it takes to transition the carrying value of non-current assets from the cost approach to the fair value approach, theCouncil may still be utilising both methods across differing asset classes.
Those assets carried at cost will be carried in accordance with the policy detailed in the Initial Recognition section as detailed above.
Those assets carried at fair value will be carried in accordance with the Revaluation methodology section as detailed above.
Land Under ControlIn accordance with local Government (Financial Management) Regulation 16 (a), the Council is required to include as an asset, CrownLand operated by the local government as a golf course, showground, racecourse or other sporting or recreational facility of State orregional significance.
Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were then classified as Land andrevalued along with other land in accordance with other policies detailed in this Note.
Whilst they were initially recorded at cost, fair value at the date of acquisition was deemed cost as per AASB 116.
Easements
The Council has determined that under AASB 138 Intangible Assets, easements are valued on an historical cost basis, because it isunlikely that an active market in easements exists to allow for fair value measurement. Due to acquisition of easements at NIL values, no easements have been included in the financial report.
Initial RecognitionAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidentalto the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date ofacquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, directlabour on the project and an appropriate proportion of variable and fixed overheads.
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City of Canning Annual Report 2012/2013Page 33
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Council’s Policy in relation to the valuation and depreciation of Council Assets is as follows:
1.3.1 The Assets Classes include:- Land and Buildings- Furniture and Equipment- Plant and Equipment- Tools - Infrastructure Assets
1.3.2 Infrastructure Assets include the following Sub-Classes: 1.3.2.1 Infrastructure Assets Roads-
- Roads- Footpaths- Drainage- Street Signs- Parking Signs- Bus Shelters- Bridges Land Under RoadsIn Western Australia, all land under roads is Crown Land, the responsibility for managing which, is vested in the local government.
Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. Thisaccords with the treatment available in Australian Accounting Standard AASB 1051 Land Under Roads and the fact Local Government(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government (Financial Management)Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
Whilst this treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2)provides, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail.
Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.
1.3.2.2 Recreation Facilities-
- Playing Fields- Passive Parklands- Reticulation and Irrigation- Lighting- Fences- Play Equipment and Facilities- Barbecue and Park Furniture
1.3.2.3 Other
- Carparks
1.3.3 Land – Valuation Policyi) Non Commercial Purposes (Recreation, Public Open Space, Roads and Drainage Construction) to be recorded at $100 per holding.ii) Commercial Purposes – Independent assessments to be obtained at 4 yearly intervals of the Fair market Value of Land based onexisting use which was undertaken in the 2007/2008 financial year. In view of the adoption of fair value reporting for land for the yearending 30 June 2014 no valuation was carried out in the year 2011-2012. The valuation of land will be carried out for the year ending 30June 2014 and the land value for next one year will be amended with respect to the additional historical cost value of land purchases.
1.3.4 Buildings, Furniture and Equipment – Valuation PolicyIndependent assessments to be obtained on 4 year intervals. An assessment was undertaken in 2011/2012 financial year based on thereplacement cost of the Asset. These values were incorporated in the Financial Records as an opening adjustment for the year ending30 June 2013. The values for the remaining 3 years will be amended by the additional historical cost of new purchases.
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City of Canning Annual Report 2012/2013Page 34
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
1.3.5 Plant, Equipment and Tools – Valuation Policy
An independent assessment was undertaken of all the plant items by the City's fleet management company. All the plant items werereported at fair value as at the financial year end except where the written down value of the plant was less than $5,000, in such casethe written down value was considered to be the fair value of the plant.
1.3.6 Infrastructure Assets – Valuation Policy
Where the annual valuation derived for the Infrastructure Asset models varies to the opening balance brought forward plus the actualamount expended on construction or purchase for each Asset class, the net increment or decrement in respect of that class comparedto the Valuation Model will be accounted for as follows:
i) If the annual valuation derived for the Infrastructure Asset model exceeds the opening balance brought forward plus the actualamount expended on construction or purchase for each Asset class the increment will be credited directly to the Asset RevaluationReserve – except to the extent that the increment reverses a re-valuation decrement previously recognised as an expense in theIncome Statement in respect of that same class of Asset, it must be recognised as revenue in the Income Statement for the period; and
ii) If the annual valuation amount derived from the Model is less than the opening balance brought forward plus the actual amountexpended on construction or purchase for each Asset class the decrement will be recognised as an expense in the Income Statement –except to the extent that such a decrement reverses a revaluation increment previously credited to, and still included in the balance ofthe Asset Revaluation Reserve in respect of that class, in this situation it will be debited directly to the Asset Revaluation Reserve.
Asset class increments and decrements shall be offset against on another within a class of non-current Assets, but shall not be offset inrespect of different classes of non-current Assets.
Values of Infrastructure Assets are recorded based on models used to value each class of Infrastructure Assets on an annual basis asdetailed below:
Infrastructure Assets Roads includes:
a) Infrastructure Assets Roads includes:
RoadsThe Pavement and Road Management Maintenance System (PARMMS) is the method used by Council to value it road Network. Theclass of Asset is valued at Replacement Cost and depreciated after taking into account the condition of the roads. Physical inspectionsand condition testing of the Road Network are continually undertaken.
BridgesThe Valuations of Bridges are based on Replacement Cost and Depreciation is calculated on its useful life.
FootpathsThe Valuations of Footpaths are based on Replacement Cost and Depreciation is calculated on its useful life.
DrainageThe Valuations of Drainage is based on Replacement Cost and Depreciation is calculated on its useful life.
SignsParking and Street - The Valuations of Signs is based on Replacement Cost and Depreciation is calculated on its useful life.
Bus SheltersThe Valuations of Bus Shelters is based on Replacement Cost and Depreciation is calculated on its useful life.
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City of Canning Annual Report 2012/2013Page 35
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
c) Infrastructure Assets Other includes: CarparksThis class of Asset is valued at Replacement Cost and depreciated after taking into account the condition of the Carparks. Physical inspections and condition testing of the all Carparks are continually undertaken.
d) Land Under Roads The City in accordance with AASB 1051 does not recognise Land Under Roads acquired before 1 July 2008 as an Asset.
In accordance with the Local Government (Financial Management) Regulations 1996, Regulation 16 Accounting for land under Local Government Control, the City does not include a value within its Asset Register for Land Under Roads.
1.3.7 DepreciationAll property (excluding land), plant and equipment and tools are depreciated over their useful lives on a straight line basis as follows:
a) Property, Plant and Equipment
Buildings - 2 – 60 years Tools - 1 – 5 years Plant and Equipment – Mobile Plant and Vehicles - 1 – 10 years Plant and Equipment – Other Plant - 1 – 15 years Furniture and Equipment - 1 – 10 years
From the 2003/2004 financial year, buildings have been recorded as per independent valuations and will be depreciated over theremainder of their useful life. During subsequent years depreciation is calculated as determined by the independent assessment to beobtained on 4 year intervals, with the most recent revaluation being conducted in 2011/2012. Buildings constructed in betweenindependent assessments are depreciated according to Officers estimate of their useful lives.
b) Infrastructure Assets Recreation Facilities includes:
Playing FieldsThe Valuation of Playing Fields is based on current Development Costs to develop land to Playing Fields.
Passive ParklandsThe Valuation of Parklands is based on current Development Costs to develop land to Passive Recreational Facilities.
Reticulation and IrrigationThe Valuation of Reticulation and Irrigation is based on Replacement Cost and Depreciation is calculated on its useful life.
LightingThe Valuation of Lighting is based on Replacement Cost and Depreciation is calculated on its useful life.
FencesThe Valuation of Fences is based on Replacement Cost and Depreciation is calculated based on annual condition assessments whichare continually undertaken.
Play Equipment and FacilitiesThe Valuation of Play Equipment and Facilities is based on Replacement Cost and Depreciation is calculated on its useful life.
Barbecues and Park FurnitureThe Valuation of Barbecues and Park Furniture is based on Replacement Cost and Depreciation is calculated on its useful life.
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City of Canning Annual Report 2012/2013Page 36
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
1.3.8 Rates, Grants, Donations and Other Contributions
Rates, grants, donations and other contributions are recognised as revenues when the City of Canning obtains control over the assetscomprising the contributions. Control over Assets acquired from rates is obtained at the commencement of the rating period or, whereearlier, upon receipt of the rates. Control over granted assets is normally obtained upon their receipt or upon prior notification that agrant has been secured, and the timing of commencement of control depends upon the arrangements that exist between the grantorand the City of Canning. Unreceived contributions over which the City of Canning has control are recognised as receivables.
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in aparticular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of andamounts pertaining to those undischarged conditions are disclosed in Note 5. That note also discloses the amount of contributionsrecognised as revenues in a previous reporting period which were obtained in respect of the City of Canning’s operations for thecurrent reporting period. Should the City receive Grant Funding related to future financial years then these monies will be recognisedas a liability for Income In Advance. The rating and reporting period coincides with rates levied for the year and recognised asrevenues. All outstanding rates are collectable and therefore no provision has been made for doubtful debts.
1.3.9 Employee Benefits
The amounts expected to be paid to Employees for their pro-rata entitlements to Long Service and Annual Leave are accrued annuallyas follows:
i) Annual Leave - accumulated to the last anniversary date from the commencement of employment, less leave taken. Leave untaken atbalance date is expressed as a liability by utilising the rate of pay applicable at 30 June in each year plus applicable salary and wageoncost.
ii) Long Service Leave - computed in accordance with the provisions of the Local Government (Long Service Leave) AmendmentRegulations 1983 and Australian Accounting Standards Board 119 -"Employee Entitlements". The provision for employee’sentitlements to Long Service Leave represents the present value of the estimated future cash outflows to be made by the City resultingfrom employees who have worked with the City for 12 months or more.
Liabilities for employee entitlements which are not expected to be settled within 12 months are discounted using the rates attached tothe Commonwealth Bond rates at balance date, which most closely match the terms of maturity of the related liability. In determiningthe liability for employee entitlements, consideration has been given to future increases in wage and salary rates. Related on-costs forsuperannuation and workers compensation have also been included in the calculations.
1.4.0 Superannuation
The City contributes to the Local Government Superannuation Fund and makes payments to other defined funds in accordance withChoice of Superannuation Fund laws passed in July 2005. Contributions are recognised as an expense, as they are incurred.
1.5.0 Prepaid Expenses Prepaid Expenses include amounts that relate to the operations of Canning Lodge, which Council assumed responsibility from theAssociation of the Blind.
b) Infrastructure
Roads - Condition Rated Annually Bridges - 30 – 50 years Footpaths - 50 years Drainage - 75 years Signs – Streets - 15 years Signs – Parking - 10 years Bus Shelters - 20 years
Recreation Facilities Playing Fields - Not Depreciated Passive Parklands - Not Depreciated Reticulation and Irrigation - 25 years Lighting - 40 years Fences - Condition Rated Annually Play Equipment and Facilities - 10 to 15 years BBQ and Park Furniture - 5 to 10 years
Other Facilities Carparks - 20 years
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City of Canning Annual Report 2012/2013Page 37
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
1.8.0 Interest in Joint Ventures
Council's interest in Joint Venture entities are brought to account using the equity method of accounting in the Financial Statements.
1.9.0 Goods and Services Tax (GST)
In accordance with recommended practice, revenue expenses and assets capitalised are stated net of any GST recoverable, exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and Payables in theBalance Sheet are stated inclusive of applicable GST. Cash flows are presented in the cash flow statement on a gross basis, except forthe GST component of investing and financing activities, which are disclosed as operating cash flows.
1.10.0 Impairment
In accordance with the Australian Accounting Standards the City's assets, other than inventory, are assessed at each reporting date todetermine whether there is any indication that they may be impaired. Where such an indication exists, an estimate of the recoverableamount of the asset is made in accordance with AASB 136 "Impairment of Assets" and appropriate adjustments made. An impairmentloss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairmentlosses are recognised in the Income Statement.
Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Council prior to the end of the financial year thatare unpaid and arise when the Council becomes obliged to make future payments in respect of the purchase of these goods andservices. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.
Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition,construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset.
ProvisionsProvisions are recognised when:
a) the Council has a present legal or constructive obligation as a result of past events;b) for which it is probable that an outflow of economic benefits will result; andc) that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
1.6.0 Stock on Hand
Stocks on hand of materials and stores are valued at cost. Materials are issued to works on basis of cost.
1.7.0 Cash and Cash Equivalents
For the purpose of the statement of cash flows, cash includes cash on hand and in banks and current investments in money marketinstruments, net of outstanding bank overdrafts.
Trade and Other ReceivablesTrade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due fromthird parties for goods sold and services performed in the ordinary course of business.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All otherreceivables are classified as non-current assets.
Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written offwhen identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.
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City of Canning Annual Report 2012/2013Page 38
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
1.14.0 Rounding Off Figures
All figures shown in this budget, other than a rate in the dollar, are rounded to the nearest dollar.
1.15.0 Budget Comparatives
Unless otherwise stated, the Budget comparative figures shown in this annual Financial Report relate to the original Budget adopted byCouncil and does not include any subsequent amendments.
1.16.0 Critical Accounting Estimates
The preparation of an Annual Financial Report in uniformity with the Australian Accounting Standards requires arrangement to makejudgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, incomesand expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to bereasonable under the circumstances; the result of which form the basis of making the judgements about carrying values of assets andliabilities that are not readily apparent from other sources. Actual results may vary from these estimates.
1.11.0 Segment Reporting
Whilst Local Governments are not required to comply with AASB 114 “Segment Reporting”, the City of Canning is an approvedprovider of residential aged care and receives funding from the Department of Health and Ageing. The funding is provided inaccordance with the Aged Care Act 1997 and is governed by the Residential Care Subsidy Amendment Principles 2005 (No.1). Acondition of these principles is that Residential Aged Care be treated as a reportable segment by the approved provider as part of itsFinancial Report. The Council does not treat any other part of its activities as reportable segments.
1.12.0 Land Held for Resale
The land was valued at net realisable value, prior to the land being subdivided. Land held for resale is valued at the lower cost and netrealisable value. Cost includes the cost of acquisition development. Revenue arising from the sale of property is recognised costs andany other costs applicable to the subdivision.
1.13.0 Comparative Information
Comparative Information has been included in the Financial Statements. Where required, comparative figures have been adjusted toconform with changes in presentation for the current financial year.
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City of Canning Annual Report 2012/2013Page 39
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
2 REVENUES AND EXPENSES
The Revenue and Expenses as reported in the Financial Report includes:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013$ $ $
Charging as Expenses15,856,805 Depreciation on Non-Current Assets 15,826,550 17,351,813
Auditors Remuneration21,000 - Audit 24,200 24,020
9,400 - Financial Management Review and Other Services 52,000 52,00030,400 76,200 76,020
Interest Expense113,124 Borrowings 341,877 599,457
Other Items- Direct from Operating Statement(197,429) -Infrastructure Assets - Decrement - (4,650,689)(197,429) - (4,650,689)
Crediting as RevenueProfit(Loss) on Sale of Non-Current Assets
(142,385) Land and Buildings - 10,679,27338,062 Plant and Equipment (522,331) 271,286
- Furniture and Equipment 1,000 3,446(104,323) (521,331) 10,954,005
Interest Earnings1,888,157 - Municipal Fund 1,720,803 1,399,7772,474,140 - Other Funds 1,788,650 1,725,4024,362,297 3,509,453 3,125,179
- Non cash contribution - Land acquisition 550,000 550,000- 550,000 550,000
Non-Operating Grants, Subsidies and Contributions- General Purpose Funding - - - Governance - -
107,549.00 Law, Order, Public Safety 15,000 14,920- Health - -
390,642 Education and Welfare - 15,305- Housing - -
79,533.00 Community Amenities 23,560 13,5609,271,510 Recreation and Culture 1,075,000 1,058,276
4,560,318 Transport 5,336,165 3,944,812- Economic Services - - - Other Property and Services - 550,000
14,409,552 6,449,725 5,596,873
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City of Canning Annual Report 2012/2013Page 40
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
3 DESCRIPTION OF FUNCTIONS / ACTIVITIES
General Purpose FundingRates Levied, Interest on Late Payment of Rates, General Purpose Grants and Interest Received on Investments.
GovernanceMember of Council Allowances and Reimbursements, Civic Functions, Election Expenses and Administration Expenses.
Law, Order, Public Safety
HealthEnvironmental Health, Food Control, Pest Control, Immunisation Services & Maintenance of Maternal Infant Health Clinics.
Education and Welfare
HousingAged Persons Residence, Accommodation for People with Disabilities and Staff Housing.
Community Amenities
Recreation and Culture
Transport
Economic Services
Other Property and Services
Maintenance of Halls, Swimming Pool, Recreation Centres, Reserves, Libraries, Golf course, Recreation Equipment Hire and Other
Maintenance of Roads, Drainage Works, Footpaths, Street Lighting, Parking Facilities, Crossovers, Verge Maintenance and Street
Weed Control, Area Promotion, Implementation of Building Controls, Swimming Pool Inspections, Plant Nursery Operations and Concrete Batching Operations.
Private Works, Town Planning Schemes, Public Works Overheads, Plant Operations, Materials, Salaries and Wages Controls and Other
Supervision of various Local Laws, Fire Prevention, Animal Control, Ranger and Security Services, Impounding of Vehicles and Emergency Services.
Pre-Schools and other Education. Care of Families and Children, Senior Citizens Centres, Day Care Centres, Meals on Wheels, Home Help, Transport Services, Family Support and Multicultural Centre Activities.
Refuse Collection Services, Landfill Site Operations, Protection of the Environment, Administration of the Town Planning Scheme and Urban Stormwater and Drainage Works.
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City of Canning Annual Report 2012/2013Page 41
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
4 CASH AND RESTRICTED FUNDS
Actual Actual2011/2012 2012/2013
$ $4,788,631 Cash at Bank 2,996,760
11,360 Cash on Hand 14,0104,799,991 Total Cash - Sub Total 3,010,770
56,421,835 Investments - Current 66,201,4597,000,000 Investments - Non Current 0
63,421,835 66,201,459
68,221,826 Total Cash and Investments 69,212,229
Current Cash and Investments4,788,631 Cash at Bank 2,996,760
11,360 Cash on Hand 14,01056,421,835 Investments - Current 66,201,459
61,221,826 Total Current Cash and Investments 69,212,229
Non Current Cash and Investments7,000,000 Investments - Held to Maturity - 7,000,000 Total Non-Current Cash and Investments -
68,221,826 Total Cash and Investments 69,212,229
Represented by:-42,461,729 Restricted Cash 51,251,38825,760,097 Unrestricted Cash 17,960,841
68,221,826 69,212,229
Actual Actual2011/2012 Note 2012/2013
$ $17,206,012 Reserve Fund - Land and Buildings (Restricted Cash) 8(a) 25,856,623
4,017,959 Reserve Fund - Waste Management (Restricted Cash) 8(b) 3,502,2525,626,575 Reserve Fund - Aged Persons Homes (Restricted Cash) 8(c) 5,779,2012,176,472 Reserve Fund - Insurance (Restricted Cash) 8(d) 2,176,4723,621,938 Reserve Fund - Infrastructure (Restricted Cash) 8(e) 5,579,124
1,284,701 8(f)1,248,262
2,632,105 7(b) 799,782127,495 Other - (Town Planning Scheme 23 and 24) (Restricted Cash) 32 133,997
1,629,466 Crossover Construction Fees 29 1,907,0551,368,352 Kerb and Footpath Deposits 29 1,428,9371,911,146 Canning Lodge Accommodation Bonds 29 2,335,146
859,508 Unspent Grants (Details Below) 5 504,53642,461,729 51,251,388
5 UNSPENT GRANTS
- Grant DSR-Kidsport Program 77,281- Govt Grant - Road Funding (Various) 427,255
504,536
Unspent Loan Funds
The following details Grants recognised as revenues during the financial year in respect of which expenditure had not been made and is to be carried forward and expenditure will be incurred in the 2012/2013 financial year:
The following restrictions on cash have been imposed by regulations or other imposed requirements; details of the restrictions can be obtained from the note number referenced next to each item.
Reserve Fund - Local Government & Organisational Reform (Restricted Cash)
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City of Canning Annual Report 2012/2013Page 42
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
6 PROPERTY, PLANT, EQUIPMENT AND INFRASTRUCTURE(a) Sale of Assets
In accordance with Financial Management Regulation 36(1)(e), the following information is provided in relation to the disposalof Assets by Asset Class:
Gain(Loss) on Disposal
2012/2013 2012/2013 2012/2013 2012/2013 2012/2013 2012/2013Adopted Adopted Adopted
Budget Actual Budget Actual Budget Actual $ $ $ $ $ $
Asset by ClassLand and Buildings - 13,128,929 - 2,449,656 - 10,679,273Furniture and Equipment 1,000 3,446 - - 1,000 3,446Plant and Equipment 713,026 375,070 1,235,357 103,784 (522,331) 271,286
TOTAL BY CLASS OF ASSETS 714,026 13,507,445 1,235,357 2,553,440 (521,331) 10,954,005
(b) Property, Plant, Equipment and Infrastructure Classified according to Class
$ $ $ $Property Plant and Equipment Assets
29,203,250 Land (management valuation) 29,753,250
246,466,017 Buildings (management valuation) 225,119,120 (114,003,223) 132,462,794 Less Accumulated Depreciation (85,585,516) 139,533,604
14,846,465 18,744,365 (13,181,446) 1,665,019 Less Accumulated Depreciation (16,750,799) 1,993,566
18,109,462 20,569,799 (12,018,716) 6,090,746 Less Accumulated Depreciation (11,786,663) 8,783,136
92,516 Tools (at cost) 92,516 (92,516) - Less Accumulated Depreciation (92,516) -
169,421,809 Total Property Plant and Equipment Assets 180,063,556
Infrastructure Assets519,826,692 Roads (management valuation) 551,680,588
(165,918,821) 353,907,871 Less Accumulated Depreciation (185,215,763) 366,464,825
63,772,020 61,126,237 (13,744,127) 50,027,893 Less Accumulated Depreciation (15,099,610) 46,026,627
7,772,171 Other (management valuation) 9,019,049 (2,848,057) 4,924,114 Less Accumulated Depreciation (3,272,753) 5,746,296
408,859,878 Total Infrastructure Assets 418,237,748
578,281,687 598,301,304
For further details on Council’s Policy on Accounting for Fixed Assets refer to Note 1.3.0 "Non-Current Assets - Valuationsand Depreciation”.
Recreation Facilities (management valuation)
TOTAL PROPERTY, PLANT, EQUIPMENT & INFRASTRUCTURE
Actual Actual2011/2012 2012/2013
Furniture and Fittings (management valuation)
Plant and Equipment (Independent Valuation)
Proceeds Written Down Sale of Assets Value
Page18
City of Canning Annual Report 2012/2013Page 43
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(c) Assets Classified by Program
Council’s Assets classified by Program are summarised as follows:
Program Land Buildings Furniture Plant Infrastructure All Totaland and Other By
Equipment Equipment Assets Program $ $ $ $ $ $ $
Governance - 38,048,064 576,736 1,231,439 - 14,851 39,871,090Law, Order & Public Safety 457,657 1,175,954 30,503 35,219 - 507,295 2,206,628Health - 857,211 13,111 111,014 - 150,454 1,131,790Education & Welfare 465,599 6,886,968 195,968 202,337 - 5,731,278 13,482,150Housing 3,843,657 3,730,608 17,319 214,610 - 567,536 8,373,730Community Amenities 5,034,232 17,320,712 264,505 2,754,834 - 8,390,080 33,764,363Recreation & Culture 18,101,811 30,921,844 311,493 2,459,882 57,005,568 4,998,730 113,799,328Transport - 9,443,214 142,700 549,764 361,232,180 3,991,842 375,359,700Economic Services - 611,950 9,363 45,892 - 1,036,125 1,703,330Other Property & Services 1,850,294 30,537,078 431,868 1,178,144 - 57,319,487 91,316,871
TOTAL 29,753,250 139,533,604 1,993,566 8,783,136 418,237,748 82,707,678 681,008,982
The following buildings, included in the above figures are restricted assets:$
176 Gibbs Street, East Cannington ) The properties are held under a Deed 9,000178 Gibbs Street, East Cannington ) Management from the State Planning 13,440305 Welshpool Road, Welshpool ) Commission for a period of 25 years. 24,96012/1179 Albany Highway, Bentley ) The properties are held under Deeds 79,80076 Hamilton Street, Cannington ) of Trust with Caveats lodged on the 54,72012 Allen Court, Queens Park ) Certificate of Title to prevent any 100,32012/152 Hamilton Street, Cannington ) dealings 116,2808 Blenny Close, Cannington ) 155,04054 Hybanthus Road , Ferndale ) 198,0188/19 Saurel Way, Ferndale ) 78,660
830,238(d) Movements in Carrying Amounts
Program Land Buildings Furniture Plant Infrastructure Totaland and
Equipment Equipment$ $ $ $ $ $
29,203,250 132,462,794 1,665,019 6,090,744 408,859,879 578,281,686
550,000 4,763,229 709,164 3,742,135 11,511,158 21,275,686
20,000 - - - 20,000
Disposals - - - (103,784) - (103,784)
- 6,724,097 323,021 1,606,963 7,525,447 16,179,528
- (4,436,516) (703,638) (2,552,922) (9,658,736) (17,351,812)
29,753,250 139,533,604 1,993,566 8,783,136 418,237,748 598,301,30429,753,250 139,533,604 1,993,566 8,783,136 418,237,748 598,301,304
Revaluation Increments/(decrements)
Depreciation ExpenseCarrying Amount at the end of Year
The Land component of the Assets does not include Land held for Resale. Transactions relating to Land Held for Resale are shown at Note 19.
Movement in the carrying amounts of each class of property, plant, and equipment between the beginning and the end of the current financial year
Balance at the beginning of the year
Additions
Increase in ResidentsEquity Retirement Villages
Page19
City of Canning Annual Report 2012/2013Page 44
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Infrastructure Assets contains the following components;
Infrastructure Roads Recreation Other TotalFacilities Infrastructure
$ $ $ $
353,907,871 50,027,893 4,924,114 408,859,878
9,470,216 2,040,942 11,511,158
Disposals - - - -
11,354,362 (5,102,048) 1,273,133 7,525,447
(8,267,624) (940,160) (450,952) (9,658,735)
366,464,825 46,026,627 5,746,295 418,237,748366,464,825 46,026,627 5,746,296 418,237,748
7 INTEREST BEARING LIABILITIES
(a) Unspent balance of money borrowed in a previous financial year
(b) Loans Raised in Financial Year
The City raised the following loans in the 2012/2013 financial year;
Underground Power Schemes (Wilson East)
Southern Metropolitan Regional Council
Loan Est. Amount AmountProgram No. To be Term of Interest to be Spent
Borrowed Lending Institution Borrowing Rate 2012/2013Community Amenities $ $ $
12,788,309 Upto 12 Years 3.55% 12,788,309 Economic Services
4,302,318 10 Years 3.87% 4,302,318
17,090,627 17,090,627
Underground Power- Wilson East WATC
The City is a participating in another separate Underground Power Scheme for the Wilson East area. Ratepayers have been informed of the proposed Scheme cost $7,804,436 (*50% funded by Western Power) and have the option of paying a one-off lump sum amountadvised (which will reduce the loan borrowing amount proposed by the City) or to pay by instalments through the City's rating processthrough the raising of a service charge. The Service Charge will equal the cost of the interest and principal required by the loan andbe imposed on an annual basis for the term of the loan.
At a Special Meeting held on 19 February 2009, Council resolved to give notice of its intention to withdraw from the SouthernMetropolitan Regional Council (SMRC) and the Regional Resource Recovery Centre (RRRC). The terms of the City's withdrawal aregoverned by the agreements which specify conditions relating to the City's future obligations and distribution of assets and liabilities.The City's withdrawal took effect as at the 30 June 2010.
As part of its original agreement in the Southern Metropolitan Regional Council (SMRC) and the Canning Vale Regional ResourceRecovery Centre (RRRC), the City of Canning provides a guarantee to the Western Australian Treasury Corporation for its share of anyoutstanding debenture borrowings provided for the RRRC Project and the SMRC Administration Building.
The City extinguished this guarantee and has undertaken its own borrowing in regard to its share of the outstanding debentures. Thecurrent repayment under the existing guarantee, together with any future borrowing repayments will be funded as part of the rubbishremoval charge.
Southern Metropolitan Regional Council WATC
Additions
Revaluation Increments/(decrements)
Depreciation ExpenseRoundingCarrying Amount at the end of Year
In accordance with Financial Management Regulation 48, the unspent balance of money borrowed in a previous financial years is nil.Details of Loan Funds remaining Unspent for the current financial year are detailed in Note 7(b).
Balance at the beginning of the year
Page20
City of Canning Annual Report 2012/2013Page 45
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Loans Raised in Financial Year
Program Loan Adopted Actual Adopted Actual Adopted Actual No. Budget Budget Budget
2012/2013 2012/2013 2012/2013 2012/2013 2012/2013 2012/2013$ $ $ $ $ $
Community Amenities
SMRC Exit 237 12,788,309 12,845,647 12,788,309 12,845,647 - - Funding
Economic Services
Underground 238 4,302,318 2,402,000 4,302,318 1,602,218 - 799,782 Power - Wilson East
SUB TOTAL 17,090,627 15,247,647 17,090,627 14,447,865 - 799,782
(c) Loan Repayments
Council’s Loan Liability is summarised as follows:
Program Loan Principal Loans PrincipalNo. Raised Adopted Actual Adopted Actual
Budget Budget1/07/2012 2012/2013 2012/2013 2012/2013 2012/2013 2012/2013 30/06/2013
$ $ $ $ $ $ $Community Amenities
SMRC Exit 237 - 12,845,647 - 268,093 - 1,289,280 11,556,367 Funding
Economic Services
Underground 236 4,921 - 228 228 4,921 4,921 - Power - St James
Underground 236A 2,457,751 - 151,547 154,889 685,814 685,814 1,771,937 Power - Wilson West
Underground 236B 4,039,878 - 301,709 284,312 2,251,188 2,251,189 1,788,689 Power - Bentley East
Underground 238 - 2,402,000 - - - - 2,402,000 Power - Wilson EastSUB TOTAL 6,502,550 15,247,647 453,484 707,522 2,941,923 4,231,204 17,518,993
LESS Change in Net Accrual - - - (108,065) - - - Rounding
TOTAL 6,502,550 15,247,647 453,484 599,457 2,941,923 4,231,204 17,518,993
Current 2,941,922 - - - - - 2,203,791 Non-Current 3,560,628 - - - - - 15,315,202
Loan Repayments reimbursed - - 453,484 707,522 2,941,923 4,231,204 - from external sources
TOTAL 6,502,550 - 453,484 707,522 2,941,923 4,231,204 17,518,993
Principal Borrowed Amount Spent Unspent Loan Funds
Interest Loan Repayment
Page21
City of Canning Annual Report 2012/2013Page 46
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
8 RESERVES
In accordance with Financial Management Regulation 38 the following Reserve account information is disclosed.
(a) Land, Building and Development Reserve (Cash Backed)
Subject to approval by Council, this Reserve may also make funds available for the following:- - To repay or refinance existing loan borrowings - To provide internal finance as an alternative to external borrowings- For payments of compensation awarded against the City
The transactions of the Reserve Fund are summarised as follows:Adopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $
33,923,176 Opening Balance 17,257,013 17,206,012
833,794 Interest Received 289,186 141,339387,806 Transfer to Reserve 168,000 13,282,930
(17,938,764) Transfer from Reserve (2,790,740) (4,773,658)
17,206,012 Closing Balance 14,923,459 25,856,623
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
Details1,797,082 - Multi Purpose Complex - Cannington 14,923,459 -
15,408,930 - General Purpose Land, Building and Development - 25,856,623
17,206,012 CLOSING BALANCE 14,923,459 25,856,623
(b) Waste Management Reserve (Cash Backed)
The transactions of the Reserve Fund are summarised as follows:Adopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $2,401,847 Opening Balance 4,017,959 4,017,961
118,369 Interest Received 149,620 185,0131,781,572 Transfer to Reserve 2,000,862 1,885,833(283,827) Transfer from Reserve (2,887,333) (2,586,555)
4,017,961 Closing Balance 3,281,108 3,502,252
Purpose : Acquisition, Development and Improvement of Land and Buildings and make loans to Council's Town Planning Schemes forthe purpose of acquiring Public Open Space, together with investigations and planning associated with Council land holdings, CityCentre and Strategic Precinct developments:
The Council has committed funds within the Land, Building and Development Reserve detailed below;
Purpose : Acquisition and Development of Infrastructure, Plant and Equipment and Studies/Investigations associated with the City'sWaste Management.
Page22
City of Canning Annual Report 2012/2013Page 47
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(c) Aged and Disabled Services Reserve (Cash Backed)
Purpose : To fund operational and Capital requirements associated with the City's Aged Care and Disability Services.
The transactions of the Reserve Fund are summarised as follows:Adopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $5,112,911 Opening Balance 5,647,243 5,626,574
293,685 Interest Received 299,819 268,393973,523 Transfer to Reserve 876,482 559,966
(753,545) Transfer from Reserve (486,485) (675,732)
5,626,574 Closing Balance 6,337,059 5,779,201
(d) Insurance Reserve (Cash Backed)
The transactions of the Reserve Fund are summarised as follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $2,286,741 Opening Balance 2,176,472 2,176,472
148,747 Transfer to Reserve - - (259,016) Transfer from Reserve - -
2,176,472 Closing Balance 2,176,472 2,176,472
(e) Infrastructure Reserve (Cash Backed)
The transactions of the Reserve Fund are summarised as follows:Adopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $1,907,953 Opening Balance 3,621,107 3,621,938
93,985 Interest Received 143,336 165,6241,620,000 Transfer to Reserve 7,557,157 7,557,157
- Transfer from Reserve - (5,765,595)
3,621,938 Closing Balance 11,321,600 5,579,124
Purpose : To provide for the liabilities that may arise from the City's external and internal Insurance requirements and to providefunding for various risk management strategies that will assist in reducing Insurance Premiums.
Purpose : To accumulate for Infrastructure Works that are scheduled but may not commence within the current financial year. Fundsheld in the Reserve will retain their Capital Works identity and be accessed in a future period when Capital Works commence.
Page23
City of Canning Annual Report 2012/2013Page 48
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
Details380,910 - Depot Refurbishment 395,988 395,988579,045 - POS Development Bentley / St James 601,966 601,966
1,200,000 - Sevenoaks St - Dual Carriageway (Acc 53890,53896) 1,247,500 1,247,5001,220,013 - Welshpool Rd - Dual Carriageway (Acc 45425, 45355, 71557) 1,267,441 193,101
241,970 - Drain Recontour/Landscaping & Refunds TPS38 (Acc 46831, 57853) 251,548 251,548- - Road Rehabilitation & Resurfacing 5,023,469 2,518,999- - Traffic Management 41,666 - - - Drainage 1,242,022 300,022- - Park Construction & Development 20,000 - - - Parklands for Active Use 810,000 70,000- - Playgrounds 370,000 - - - Streetscape Enhancement 50,000 -
3,621,938 CLOSING BALANCE 11,321,600 5,579,124
(f) Local Government & Organisational Reform Reserve (Cash Backed)
The transactions of the Reserve Fund are summarised as follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $1,284,701 Opening Balance 1,284,701 1,284,701
- Transfer to Reserve - - - Transfer from Reserve (55,000) (36,439)
1,284,701 Closing Balance 1,229,701 1,248,262
Summary of Reserve BalancesAdopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $17,206,012 Land, Building and Development Reserve (Cash Backed) 14,923,459 25,856,623
4,017,961 Waste Management Reserve (Cash Backed) 3,281,108 3,502,2525,626,574 Aged and Disabled Services Reserve (Cash Backed) 6,337,059 5,779,2012,176,472 Insurance Reserve (Cash Backed) 2,176,472 2,176,4723,621,938 Infrastructure Reserve (Cash Backed) 11,321,600 5,579,1241,284,701 Local Government & Organisational Reform Reserve (Cash Backed) 1,229,701 1,248,262
33,933,658 39,269,399 44,141,934
All of the above Reserve Accounts are Cash Backed and are disclosed as Restricted Cash Assets in Note 4 of theFinancial Statements.
It is anticipated the Reserves will be utilised as follows:Land, Building and Development Reserve (Cash Backed) Progressively over the next 5 YearsWaste Management Reserve (Cash Backed) Progressively over the next 2 YearsAged and Disabled Services Reserve (Cash Backed) Progressively over the next 5 YearsInsurance Reserve (Cash Backed) Progressively over the next 5 YearsInfrastructure Reserve (Cash Backed) Progressively over the next 5 YearsLocal Government & Organisational Reform Reserve (Cash Backed) Progressively over the next 2 Years
The Council has committed funds within the Infrastructure Reserve detailed below;
Purpose : To fund costs associated with the reform of the Organisation together with State Government reform of the industry includingboth structural change and the implementation of integrated planning.
Council would expect further transfers to be made to and from all Reserves as funds are utilised.
Page24
City of Canning Annual Report 2012/2013Page 49
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(g) Asset Revaluation Reserve
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
263,028,961 Opening Balance - 280,667,88017,638,919 PLUS/(LESS) Valuation changes to Fixed Assets - 20,830,217
280,667,880 - 301,498,097
The amount in the Asset Revaluation Reserve is represented by the following Asset Class balances:
$28,964,174 Land 28,964,17449,817,214 Buildings 56,541,311
152,297 Furniture & Equipment 475,318- Plant & Equipment 1,606,963
Infrastructure Assets:124,122,516 Roads 129,369,411
18,145,112 Footpaths 19,743,2084,418,849 Bridges 4,713,870
345,105 Signs 381,0732,590,149 Playing Fields 2,865,1121,949,957 Reticulation and Irrigation 1,467,309
402,590 Play Equipment 252,0411,084,795 Park Furniture 1,119,964
86,908 Lighting - 2,496,878 Carparks 3,770,011
43,311,859 Drainage 47,475,998343,358 Bus Shelters 357,602
2,436,119 Fences 2,394,732280,667,880 301,498,097
The following Asset Revaluation Reserve has resulted from the revaluation of Council Assets in accordance with the AASB 116 -"Property, Plant and Equipment”.
The Asset Revaluation Reserve is not Cash Backed and future transactions on the Reserve will be in accordance with Note 1(c) “NonCurrent Assets - Valuation and Depreciation”.
Page25
City of Canning Annual Report 2012/2013Page 50
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
9 CASH FLOW INFORMATION
Reconciliation of cash flows from operations with change in net result from operations.
For the purpose of this statement of cash flows, cash includes cash on hand and deposits with Banks or Financial Institutions.
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
12,665,816 Change in net Result from operations (18,561,672) (10,287,341)
Non cash flows in change in Net Equity15,856,805 Depreciation 15,826,550 17,351,813
104,323 Profit/loss on sale of Fixed Assets 521,331 (10,954,005)(19,544) Changes to provisions 301,344 932,097
(14,409,552) Government Revenue (6,434,725) (5,596,873)- Change in Equity - Joint Venture - -
197,429 (Increment)/Decrement from Revaluation-Infrastructure Assets - 4,650,689
Change in Assets and Liabilities(24,814) (Increase)/Decrease in Inventory 8,564 24,462
- (Increase)/Decrease in Prepaid Expenses - (46,666)- Increase/(Decrease) in Accrued Expenditure - -
(5,853,364) (Increase)/Decrease in Accounts Receivables 2,526,004 (1,423,504)2,853,093 Increase/(Decrease) in Accounts Payables (7,586,942) (1,701,863)1,327,853 Increase/(Decrease) in Income in Advance (532,615) (642,635)
12,698,045 Cash flows from Operations (13,932,161) (7,693,826)
Reconciliation of Cash
4,799,991 Cash at Bank 3,010,77056,421,835 Investments - Current 66,201,459
61,221,826 TOTAL CASH 69,212,229
Credit standby arrangement and loan facilities
Council has Bank Overdraft facilities of:-1,900,000 Credit Facility 1,900,000 1,900,000
- Amount Utilised - - 1,900,000 Unused Facility available 1,900,000 1,900,000
Page26
City of Canning Annual Report 2012/2013Page 51
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
10 TRUST FUND INFORMATION
PARTICULARS OPENING CLOSING BALANCE BALANCE ADOPTED ACTUAL ADOPTED ACTUAL ADOPTED ACTUAL
BUDGET BUDGET INTEREST BUDGET1/07/2012 2012/2013 2012/2013 2012/2013 2012/2013 2012/2013 30/06/2013
$ $ $ $ $ $ $DEPOSITSCanning Rugby Club - Establish Clubrooms Wilson Park 500 - - 500 - 79 - 579
Canning Literary Awards 3,649 - - 3,649 - 577 - 4,226
Nomination Deposits - - - - - - -
PUBLIC OPEN SPACE CONTRIBUTIONSTPS6 Drainage (Kempe Hutchinson) 1,307 - - - - 207 1,307 1,514TPS9 (VM & FM Allen) 72 - - - - 11 72 83Public Open Space and Local Centre Contributions
- TPS 17 642,281 65,000 185,100 - - 97,628 707,281 925,009 - TPS 21 1,529,360 985,000 1,868,654 - 928,874 229,611 2,514,360 2,698,751 - TPS 23 805,313 - - - - 127,387 805,313 932,700 - TPS 24 67,796 - - - - 10,712 67,796 78,508 - TPS 33 464,426 - - - - 73,381 464,426 537,807
TOWN PLANNING SCHEMESTown Planning Scheme 28A- Reimbursement 154 - - - - 24 154 178
Town Planning Scheme 30 34,139 - - - - 5,394 34,139 39,533
OTHERWoodloes Folk Museum 628 - - 628 - 99 - 727
Dewey St-Private Drainage Scheme Contribution 19,783 - - - - 3,126 19,783 22,909
City of Canning Relief Fund 116 - - - - 360 116 476
414,092 2,000 36 - - 65,294 416,092 479,422
2,870 657.00 - - - 453 3,527 3,323
- - - - - 2,806 - 2,806
TOTAL 3,986,486 1,052,657 2,053,790 4,777 928,874 617,149 5,034,366 5,728,551
These funds held at the balance date are funds over which the Council has no control and which are not included in the financialstatements.
FOR THE PERIOD ENDING 30 JUNE 2013
RECEIPTS PAYMENTS
Unclaimed Monies and Returned Cheques
Sale of Impounded Vehicles
SMRC - GST pending ATO Tax Ruling
TRUST FUND
Page27
City of Canning Annual Report 2012/2013Page 52
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
11 COMPARISON WITH RATE SETTING BUDGET
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
Non Operating Income20,087,409 Transfer from Reserves 6,219,557 13,837,977
226,809 Transfer from Other - -
20,314,218 TOTAL 6,219,557 13,837,977
Non Operating Expenditure7,103,738 Transfer to Reserves 11,484,462 24,046,254
34,559 Transfer Other 6,600 167,350
7,138,297 TOTAL 11,491,062 24,213,604
In accordance with Financial Management Regulation 36(1)(a) the following information provides details of movements to and fromReserve Accounts which have not been included in the Income Statement but which have been included in the “Rate SettingStatement”.
Page28
City of Canning Annual Report 2012/2013Page 53
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
12 RATING INFORMATION
In accordance with Financial Management Regulation 39, Council has imposed the following Rates:
(a) General and Minimum Rate
CURRENT YEAR ESTIMATED 2012/2013
GENERAL RATE MINIMUM RATE
Number of Rateable G.R.V. Rate Number of Minimums Minimum
Properties Value Rate in Yield Properties Rateable Value Rate Yield TOTAL
$ $ $ $ $ $ $
GENERAL RATE
General Rate GRV 31,068 959,652,054 0.04176 40,075,072 40,075,072
Minimum Rate 4,530 46,394,619 491 2,224,230 2,224,230
Interim Rates 280,000
SUB TOTAL 31,068 959,652,054 40,075,072 4,530 46,394,619 2,224,230 42,579,302
SPECIFIED AREA
Canning Vale POS
- General Rates 3,204 64,610,189 0.00359 231,961 231,961
- Surplus C/F 15,029
Canning Vale POS
- Interim Rates
SUB TOTAL 3,204 64,610,189 231,961 246,990
GRAND TOTAL 34,272 1,024,262,243 40,307,033 4,530 46,394,619 2,224,230 42,826,292
CURRENT YEAR ACTUAL 2012/2013
GENERAL RATE MINIMUM RATE
Number of Rateable G.R.V. Rate Number of Minimums Minimum
Properties Value Rate in Yield Properties Rateable Value Rate Yield TOTAL
$ $ $ $ $ $ $
GENERAL RATE
General Rate GRV 31,068 959,652,054 0.04176 40,075,072 40,075,072
Minimum Rate (2) 4,530 46,394,619 491 2,224,230 2,224,230
Interim Rates 369,649 369,649
SUB TOTAL 31,068 959,652,054 40,444,721 4,530 46,394,619 2,224,230 42,668,951
SPECIFIED AREA
Canning Vale POS
- General Rates 3,204 64,610,189 0.00359 232,570 232,570
- Surplus C/F (21,955) (21,955)
Canning Vale POS 15,029 15,029
- Interim Rates
SUB TOTAL 3,204 64,610,189 225,644 225,644
GRAND TOTAL 34,272 1,024,262,243 40,670,365 4,530 46,394,619 2,224,230 42,894,595
Page29
City of Canning Annual Report 2012/2013Page 54
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
The Objectives and Reasons for General and Minimum Rate
(b) Specified Area Rates
Canning Vale Public Open Space Maintenance
Description of Land
More commonly known as the "Canning Vale Estates".
Application of Rates Levied
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
20,545 Unspent Balances Carried Forward 15,029 15,029223,822 Revenue 231,961 232,570244,367 246,990 247,599
Less ExpensesPublic Open Space & Verge Maintenance
(20,486) - Canning Vale Oval (19,985) (19,230)(62,158) - Livingston Estate P.O.S. (69,771) (63,272)
(51,843) - Waratah Estate P.O.S. (58,885) (52,683)(94,851) - Ranford Estate P.O.S (98,349) (90,459)
(229,338) (246,990) (225,644)
15,029 Unspent Balance Carried Forward - 21,955
(c) Information about discounts, incentives, concessions and write offs
The total cost of this Incentive Scheme for the City of Canning is nil.
* Art Lessons to the value of $100 by Canning Arts Group* 2 Theatre Tickets to the value of $150 held by the WA Ballet* 6 Food Vouchers x $50 each from Canning River Café
* 8 Gift Cards x $250 each from Stockland Riverton * 5 Bank Accounts x $500 each from National Australia Bank* 2 Double Passes for Concert held by the WA Symphony Orchestra* Voucher to the value of $50.00 for Lo Quay Café, at Riverton Bridge * A $300 Voucher for "Getaway for 2" at Miss Maud's Swedish Hotel, Murry Street Perth
The following Prizes were donated by the Sponsors of the Rate Payment Incentive Scheme for the 2012/2013 Financial year.
Council imposed a general rate of 0.04176 cents in the Dollar and minimum rate of $491pa, as Council perceives it to be a“reasonable” minimum level of rates which all ratepayers in its district should pay. The minimum rate reflects the basic cost incurredby the Council in servicing each lot or dwelling in its district.
To maintain the level of Public Open Space Development at the current standard. Recently established and ongoing subdivisions inCanning Vale, a suburb located in the South East Corner of the City, adjacent to Ranford Road, all have Public Open Space fullydeveloped and initially provided at the expense of the respective subdividers.
All the land comprised within the area connecting at the north western corner of the intersection of Nicholson Road and Clifton Roadthen in a north easterly direction along the north western boundary of Nicholson Road to Nicholson Court then in a north easterlydirection along the north western boundary of Nicholson Court to the south western corner of the intersection of Nicholson Court andthe Standard Gauge Railway Reserve then in a south westerly direction along the southern boundary of the Standard Gauge railwayReserve and Ranford Road then in a south easterly direction along the north eastern boundary of Ranford Road to the north easterncorner of the intersection of Ranford Road and Wilfred Road then in a south westerly direction along the south eastern boundary ofWilfred Road to the south eastern corner of the intersection of Wilfred Road and Clifton Road then in a south easterly direction alongthe north eastern boundary of Clifton Road to the south eastern corner of the intersection of Clifton Road and Silicon Road then in asouth easterly direction along the north eastern side of Clifton Road to the starting point.
To meet the additional cost of maintaining the Public Open Space developed in the Canning Vale Estates. The Canning Vale Estates
Page30
City of Canning Annual Report 2012/2013Page 55
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
13 SERVICE CHARGES
(a) St James
The City has borrowed the sum of $35,201 for a term of 9 years to fund the above project.
The Loan repayments for the 2012/2013 financial year amounts to $5,151 comprising of :
Interest Repayment $228Principal Repayment $4,923
$5,151Adopted
Actual Budget Actual2011/2012 2012/2013 2012/2013
$ $ $- Unspent Balance Carried Forward - -
5,151 Service Charges Raised 5,151 5,1515,151 5,151 5,151
Less Expenses(4,634) Loan Repayment Principal (4,923) (4,923)
(517) Loan Repayment Interest (228) (228)(5,151) (5,151) (5,151)
- Unspent Balance Carried Forward - -
The Service Charges imposed for the 2012/2013 financial year are defined as :
Annual AnnualService ServiceCharge Description Charge
2011/2012 St James Underground Power Charge 2012/2013$ $
Annual Charge185.90 (A) House or Unit with overhead internal power connection 185.90 123.89 (B) House or Unit with Underground internal power connection 123.89
via a greendome
154.86 (C) House or unit with underground internal power connection 154.86 via a service pole
206.88 (D) Commercial Premises 206.88 173.43 (E) Commercial Premises with underground power connection via 173.43
via service pole92.93 (F) Welshpool Road Mult Unit Commercial Centre (Total 7 Units) 92.93
The Project involved the Design, installation and commissioning of an underground Electricity Supply Distribution System. The Projectincluded the conversion of all existing Overhead customer service connections to Underground between the property boundary andthe property building.
The amount raised for the service charge is to meet the cost of the loan repayment comprising of principal and interest. Propertyowners were given a once only opportunity to make a lump sum payment in 2003/2004 financial year which together with the2003/2004 Annual Charge reduced the amount of loan funds raised in the 2004/2005 financial year .
Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulations 40 and 54 of the Local Government (FinancialManagement) Regulations, a Service Charge is imposed for the provision of Underground Electricity within a defined part of theDistrict of St James.
Description of Land
The properties on Boundary Road between Chapman Road and Albany Highway together with properties on Welshpool Road betweenEllam Street and Albany Highway within the City of Canning.
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City of Canning Annual Report 2012/2013Page 56
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(b) Wilson West
Description of Land
The Loan repayments for the 2012/2013 financial year amounts to $252,322 comprising of :
Interest Repayment $100,591Principal Repayment $151,731
$252,322
Lump Sum AnnualService ServiceCharge Description Charge
2011/2012 2012/2013$ $
3,743.50 491.02 1,199.03 157.27 3,093.50 405.77 3,368.50 441.83
549.03 72.01
3,093.50 405.77
AnnualService ServiceCharge Description Charge
2011/2012 2012/2013$ $
3,043.50 399.21
2,993.50 392.65
449.03 58.90
449.03 58.90
824.03 108.09
6,737.00 883.67
6,362.00 834.48
(WW3) Property with underground external and underground internal power connection
(WW3A) Property with underground external and underground internal power connection with 85% discount
(WW3D) Property with underground external and underground internal power connection with 85% discount
(WW3E) Property with overhead external and underground internal power connection with 85% discount
(WWM2A) Two dwellings on one property with overhead external and overhead internal power connection
(WWM2B) Two dwellings on one property with overhead external and underground internal power connection
(WW2) Property with overhead external and underground internal (WW2A) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings with 85% discount(WW2B) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings
Wilson West Underground Power Annual Charge
Once Only Charge (Lump Sum)(WW2C) Property with overhead external and underground internal power connection with $50 service charge due to multiple dwellings
The Service Charges imposed for the 2012/2013 financial year are defined as :
Wilson West Underground Power Annual Charge
Once Only Charge (Lump Sum)(WW1) Property with overhead external and overhead internal power (WW1A) Property with overhead external and overhead internal power (WW1B) Property with overhead external and overhead internal power
Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management)Regulations, a Service Charge is imposed for the provision of Underground Electricity within a defined part of the District of Wilson,described as Wilson West.
The properties bounded by Centenary Avenue, Manning Road and Leach Highway. This includes properties connected on both sidesof Leach Highway.
The Project involved the Design, installation and commissioning of an underground Electricity Supply Distribution System. The Projectincluded the conversion of all existing Overhead customer service connections to Underground between the property boundary andthe property building.
The City has borrowed the sum of $1,923,668 for a term of 10 years to fund the above project.
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City of Canning Annual Report 2012/2013Page 57
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
5,987.00 785.30
9,730.50 1,276.32
9,355.50 1,227.13
8,980.50 1,177.95
12,724.00 1,668.98
11,974.00 1,570.60
14,967.50 1,963.24
18,336.00 2,405.08 24,323.00 3,190.38
35,922.00 4,711.79 51,264.50 6,724.23 54,633.00 7,166.06 60,620.00 7,951.36 98,785.50 12,957.42
101,779.00 13,350.07
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
- Unspent Balance Carried Forward - - - Service Charges Raised 252,322 251,928- 252,322 251,928
Less Expenses- Loan Repayment Principal (151,731) (151,731)
- Loan Repayment Interest (100,591) (100,591)- (252,322) (252,322)
- Unspent Balance Carried Forward - (394)
(WWM20A) Twenty dwellings on one property with overhead external (WWM33C) Thirty-three dwellings on one property with underground (WWM34C) Thirty-four dwellings on one property with underground
The service charge for the area described as Wilson West was imposed on property owners for the first time in the 2011/2012 financial year. Property owners were given a once only opportunity to make a lump sum payment in 2011/2012 financial year which reducedthe amount of loan funds raised in the 2011/2012 financial year.
The Application of the service Charge levied is summarised as follows:
(WWM5C) Five dwellings on one property with underground external and underground internal power connection(WWM6B) Six dwellings on one property with overhead external and (WWM8B) Eight dwellings on one property with overhead external and underground internal power connection
(WWM12C) Twelve dwellings on one property with underground (WWM17B) Seventeen dwellings on one property with overhead (WWM18A) Eighteen dwellings on one property with overhead external
(WWM2C) Two dwellings on one property with underground external and underground internal power connection
(WWM3A) Three dwellings on one property with overhead external and overhead internal power connection
(WWM3B) Three dwellings on one property with overhead external and underground internal power connection
(WWM3C) Three dwellings on one property with underground external and underground internal power connection
(WWM4A) Four dwellings on one property with overhead external and overhead internal power connection
(WWM4C) Four dwellings on one property with underground external and underground internal power connection
Page33
City of Canning Annual Report 2012/2013Page 58
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(c ) Bentley East
The Loan repayments for the 2012/2013 financial year amounts to $254,708 comprising of :
Interest Repayment $101,542Principal Repayment $153,166
$254,708
Annual AnnualService Charge Service Charge
2011/2012 2012/2013$ $
3,659.26 457.781,058.89 132.473,159.26
395.233,109.26
388.97 3,359.26 420.25
758.89 94.94
3,159.26 395.23
3,109.26 388.97
3,059.26 382.73
458.89 57.41
458.89 57.41
6,718.52 840.50
6,418.52 802.97
6,118.52 765.44
917.78 114.82
1,517.78 189.88
9,777.78 1,223.23 (BEM3A) Three dwellings on one property with overhead external and overhead internal power connection
(BE3D) Property with underground external and underground internal power connection with 85% discount
(BEM2A) Two dwellings on one property with overhead external and overhead internal power connection
(BEM2B) Two dwellings on one property with overhead external and underground internal power connection(BEM2C) Two dwellings on one property with underground external and underground internal power connection
(BEM2D) Two dwellings on one property with underground external and underground internal power connection with 85% discount
(BEM2E) Two dwellings on one property with overhead external and overhead internal power connection with 85% discount
(BE2) Property with overhead external and underground internal power connection
(BE2A) Property with overhead external and underground internal power connection with 85% discount
(BE2B) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings
(BE2C) Property with overhead external and underground internal power connection with $50 service charge due to multiple dwellings
(BE3) Property with underground external and underground internal power connection
(BE3A) Property with underground external and underground internal power connection with 85% discount
Bentley East Underground Power Annual Charge
Once Only Charge (Lump Sum)(BE1) Property with overhead external and overhead internal power (BE1A) Property with overhead external and overhead internal power (BE1B) Property with overhead external and overhead internal power connection with $100 service charge due to multiple dwellings
(BE1C) Property with overhead external and overhead internal power connection with $50 service charge due to multiple dwellings
Description of Land
The properties bounded by Coolgardie Street, Albany Highway, Manning Road and the Brownlie Towers Precinct. This includesproperties connected on both sides of Manning Road but does not include the Brownlie Towers Precinct.
The Project involved the Design, installation and commissioning of an underground Electricity Supply Distribution System. The Projectincluded the conversion of all existing Overhead customer service connections to Underground between the property boundary andthe property building.
The City has borrowed the sum of $1,941,857 for a term of 10 years to fund the above project.
The Service Charges imposed for the 2012/2013 financial year are defined as :
Description
Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management)Regulations, a Service Charge is imposed for the provision of Underground Electricity within a defined part of the District of Bentley,described as Bentley East.
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City of Canning Annual Report 2012/2013Page 59
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Annual AnnualService Service
ChargeDescription
Charge2011/2012 2012/2013
$ $
9,477.78 1,185.70
9,177.78 1,148.17
12,537.04 1,568.42
15,596.30 1,951.14
18,655.56 2,333.86
18,355.56 2,296.32
21,714.82 2,716.58
21,414.82 2,679.05
24,774.08 3,099.30
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
- Service Charge Raised 254,708 253,868- 254,708 253,868
Less Expenses- Loan Repayment Principal (153,166) (153,166)- Loan Repayment Interest (101,542) (101,542)- (254,708) (254,708)
- Unspent/(Overspent) Balance Carried Forward - (840)
The service charge for the area described as Bentley East was imposed on property owners for the first time in the 2011/2012 financialyear. Property owners were given a once only opportunity to make a lump sum payment which would reduce the amount of loanfunds to be raised, or elect to make annual payments over a ten year period commencing in the 2012/2013 financial year.
(BEM5B) Five dwellings on one property with overhead external and underground internal power connection
(BEM6B) Six dwellings on one property with overhead external and underground internal power connection
(BEM6C) Six dwellings on one property with underground external and underground internal power connection
(BEM7B) Seven dwellings on one property with overhead external and underground internal power connection
(BEM7C) Seven dwellings on one property with underground external and underground internal power connection
(BEM8B) Eight dwellings on one property with overhead external and underground internal power connection
Bentley East Underground Power Annual Charge
Once Only Charge (Lump Sum)(BEM3B) Three dwellings on one property with overhead external and underground internal power connection
(BEM3C) Three dwellings on one property with underground external and underground internal power connection
(BEM4B) Four dwellings on one property with overhead external and underground internal power connection
Page35
City of Canning Annual Report 2012/2013Page 60
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(d ) Wilson East
Description of Land
No repayments were made against this loan during the financial year.
14 INTEREST CHARGES FOR THE LATE PAYMENT OF RATES CHARGES
(1) Pursuant to Section 6.51 of the Local Government Act and Financial Management Regulation 43(a) the City of Canningimposed the following rate of interest applicable for the late payment of rates and service charges and applied as follows:
(a) Where no election has been made to pay the rate charge by instalments due
(i) after it becomes due and payable;or
(ii) 35 days after the date of issue of the rate notice
which ever is the later.
(b) Where an election has been made to pay the rate charge by instalments and an instalment remains unpaidafter its due and payable.
The rate of interest to apply is 10% and the estimated revenue from the imposition of the interest wasas follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
189,837 Interest Charges for the late Payment of Rates Charged 165,000 149,201
(2) Pursuant to Section 6.45 of the Local Government Act and Financial Management Regulation 43(c) the due dates ofeach instalment was as follows:
1st Instalment2nd Instalment3rd Instalment4th Instalment
12-October-201214-December-201215-February-2013
19-April-2013
Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management)Regulations, a Service Charge is imposed for the provision of Underground Electricity within a defined part of the District of Wilson,described as Wilson East.
The area is bounded by Leach Highway, Manning Road, Fern Road and the Canning River.
The Project involved the Design, installation and commissioning of an underground Electricity Supply Distribution System. The Projectincluded the conversion of all existing Overhead customer service connections to Underground between the property boundary andthe property building.
The City is expected to spend total cost of $7,804,436 on this project and the City would have to borrow up to 50% of the total cost tofund the above project, to be later offset by lump sum contributions received from ratepayers within the scheme area. The City hasborrowed the sum of $2,402,000 to date for a term of 10 years to fund the above project.
The service charge for the area described as Wilson East is to be imposed on property owners for the first time in the 2013/2014financial year. Property owners will be given a once only opportunity to make a lump sum payment which will reduce the amount ofloan funds to be raised, or elect to make annual payments over a ten year period commencing in the 2013/2014 financial year.
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City of Canning Annual Report 2012/2013Page 61
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
15 FEES AND CHARGES INFORMATION
(a) In accordance with Financial Management Regulation 41, the estimates of total revenue from Fees and Charges for eachprogram are summarised as follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
544 Governance 500 176105,860 Law, Order, Public Safety 124,700 119,295357,944 Health 371,542 391,605
2,092,983 Education and Welfare 2,006,048 2,158,247346,389 Housing 370,027 368,020
13,546,340 Community Amenities 13,999,944 14,527,9887,573,992 Recreation and Culture 9,163,873 8,893,178
106,451 Transport - 129,149849,696 Economic Services 767,319 733,150
1,183,212 Other Property and Services 1,170,689 1,194,541
26,163,411 TOTAL FEES AND CHARGES 27,974,642 28,515,348
(b) Fees and Charges amended during the financial year are as follows:
(c) Information about discounts, incentives, concessions and write offs
In accordance with Section 6.12 of the Local Government Act and Financial Management Regulation 42 the City of Canningprovided the following discounts, incentives and write-offs other than those applicable to Rates
Discounts
Sporting Club Discounts
Employee Enhancement Scheme Discounts
Canning River Eco Education Centre
The City of Canning has developed an extensive Employment Enhancement Program, which is designed to assist employees increating a work-life balance to suit their individual needs. This program was developed to assist the City to retain existing and attractnew staff following recent times of low unemployment and increased demand from other industry sectors, such as mining. Acomponent of the Employment Enhancement Program allows employees a 50% discount on the purchase of Gym Membership at theRiverton Leisureplex. Effective 1 April 2013 the Employment Enhancement Program was amended to allow employees a 100%discount on memberships at the Riverton and Cannington Leisureplexes.
The City of Canning controls the Canning River Eco Education Centre which was completed during 2007/2008. The centre wasconstructed by the State Government to assist the community in understanding the complexity of our river environments and toprovide a venue from which education programs could be facilitated and that members of the community could visit to appreciate thedifferent aspects of the river. The City is supports the increased community awareness of the river and has resolved at it OrdinaryCouncil Meeting held on 22nd April 2008 to provide free use of the centre to the Department of Environment and Conservation for itsSchool Holiday Program "Nearer to Nature."
There were no amendments to Fees & Charges during 2012/2013
A discount of 25% will be given to Clubs for Canning residents and/or ratepayers on fees charged to clubs for their seasonal use ofgrassed sports grounds. Such discount is only to be given provided advice and details of residents and/or ratepayer status andnumber of club members is received from each club by 15th May for winter sports and 15th November for summer sports each year. Itis further required that fees due are paid by 30th June and 31st December respectively. Such fee to apply to players fees only and notto fees or charges for changerooms, electricity etc. or to GST requirements.
Page37
City of Canning Annual Report 2012/2013Page 62
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Actual Actual2011/2012 Discounts Allowed 2012/2013
$ $5,023 Sporting Club Discounts 17,912
20,575 Employee Enhancement Scheme Discounts 40,976- Canning River Eco Education Centre -
25,598 Total Value of Discounts Allowed 58,888
Write Off Outstanding Debtors
The Council resolved to write off the following debts during 2012/2013
Actual Actual2011/2012 2012/2013
$ $457 Total amount written off. 155,431- Total amount of provision for doubtful debts used 154,702964 Net amount of Write Off 729
16 INTEREST EARNED ON INVESTMENTS
In accordance with Financial Management Regulation 49 the Earnings from Investments are summarised as follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $1,888,157 General Account 1,720,803 1,399,777
Reserve Funds1,500,794 - Land and Buildings 987,005 839,158
398,064 - Aged Persons Homes 299,819 356,959 118,369 - Waste Management 149,620 185,013
123,678 - Insurance 127,600 110,630 93,985 - Infrastructure 143,336 165,624
179,050 Internal Charge - Waste Trucks - - 53,695 Local Government Reform 74,670 61,749
6,505 Other - (Town Planning Scheme No 24) 6,600 6,269
4,362,297 TOTAL 3,509,453 3,125,179
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City of Canning Annual Report 2012/2013Page 63
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
17 COUNCIL MEMBERS - FEES, EXPENSES AND ALLOWANCES
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
-Annual Attendance Fee
70,000 Councillor (11) - $7,000 per annum 70,000 30,182
14,000 Mayor -$14,000 per annum 14,000 5,669
1,020 Audit Committee Member - $2,500 per annum 2,500 -
- Commissioner (from 27 November 2012) - 54,840
- Audit Committee Expenses - 3,560
- Telecommunication, Travel and Information Technology Allowance
- Information and Communication Technology (*reg 5.99A, as determined by SAT)- - 26,400 -Telecommunication - $2,400pa per Member 26,400 12,135 11,000 - information Technology - $1,000pa per Member 11,000 5,001
3,046 -Travel Expenses 6,000 3,164 325 -Other Re-imbursements - -
-Annual Local Government Allowance
60000 -Mayor 60000 24,294 15000 -Deputy Mayor 15000 6,073
18 DEPRECIATION ON NON-CURRENT ASSETS
The Depreciation charge included in the Financial Statements are summarised as follows:
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ $ $
528,844 Governance 133,967 633,814 149,364 Law, Order, Public Safety 88,870 132,517
38,748 Health 36,478 36,529 439,304 Education and Welfare 275,413 579,807 302,383 Housing 320,204 259,529 687,228 Community Amenities 839,072 769,242
4,277,665 Recreation and Culture 4,892,426 4,540,291 8,314,044 Transport 7,939,780 9,002,044
25,238 Economic Services 25,238 25,238 1,093,987 Other Property and Services 1,275,102 1,372,801
15,856,805 TOTAL 15,826,550 17,351,813
In accordance with Financial Management Regulation 44 Fees, Expenses or Allowances paid to Council Members are summarised as
The Minister for Local Government, the Hon John Castrilli MLA, following the report tabled in Parliament on 15 November 2012 , hadsuspended the City of Canning's Mayor and Councillors, effective from 27 November 2012. Mr Linton Reynolds had been appointed asCommissioner to act as the Council for the City of Canning.
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City of Canning Annual Report 2012/2013Page 64
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
19 MAJOR LAND TRANSACTIONS
A Business Plan was prepared in accordance with Section 3.59 of the Local Government Act 1995.
AdoptedActual Budget Actual
2011/2012 2012/2013 2012/2013 $ Programme: Other Property and Services $ $
Expenditure:4,667 Ranford Road Residential Subdivision 15,000 83,294
4,667 15,000 83,294Funding
4,667 Transfer from Land and Building Reserve Fund - 83,294
4,667 - 83,294
LAND HELD FOR RESALE
Actual Number of Actual2011/2012 Lots 2012/2013
$ $
2,449,656 Balance at the beginning of the year 42 2,449,656
- Additions - Infrastructure Development - -
- Adjustments - -
- Disposals 42 (2,449,656)
2,449,656 Closing Balance - -
Refer to note 6(a) with respect to computation of gain on disposal of land held for resale.
The subdivision incorporates a "Conservation Dampland" as Public Open Space, which must be protected in accordance with theconditions set by Environment Australia, which gave approval to the Subdivision in May 2003.
A flora and vegetation survey of the site was undertaken in September 2001 by the City's environmental consultants ATAEnvironmental, emphasis was placed on identifying and recording the location of any declared rare flora (DRF). The survey revealeddeclared rare flora was located on part of the site, resulting in the Subdivision being amended to protect the DRF. The City hasreceived the necessary approvals for the Subdivision from Department of Conservation and Land Management (WA) and Departmentof Environment and Heritage (formerly Environment Australia).
All 137 lots have now been sold. Council resolved at its Ordinary Meeting held on 5 March 2013 (Report CE-054-13) to Auction theremaining 42 lots. This was undertaken on 23 March 2013.
The titles to the subdivided individual parcels of land were issued during the 2005/2006 financial year. All relevant development costs have been accounted for as part of Council's infrastructure assets in accordance with the Accounting Policy detailed at Note 1.3.0. The City engaged Australian Property Consultants to conduct a revaluation of its land and building assets during 2007/2008. Accordingly the land held for resale was revalued however is shown at cost which is the lower of cost or net realisable value for this class of asset.
The City is carrying out the subdivision of Lot 502,Part lot 72 and Part Lot 501 Ranford Road, Canning Vale which will create anattractive residential environment that has due regards to the physical attributes and can be effectively linked into the adjoiningWaratah Estate.
The subdivision comprises of 15.7ha of land and will result in the creation of 137 residential home sites.
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City of Canning Annual Report 2012/2013Page 65
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
20 TRADING UNDERTAKINGS
Council did not participate in any trading undertakings.
21 CAPITAL AND LEASING COMMITMENTS
Council did not have any Capital or Leasing Commitments.
22 FINANCIAL INSTRUMENTS
(a) Financial Assets and Liabilities
The City held the following Financial Assets and Liabilities as at 30th June.
Carrying ValueFair
ValueCarrying
ValueFair
Value $ $ $ $
Financial Assets4,799,991 4,799,991 Cash 3,010,770 3,010,770
63,421,835 63,421,835 Investments 66,201,459 66,201,4596,352,459 6,352,459 Trade Receivables-Current 6,664,209 6,664,209
74,574,285 74,574,285 75,876,438 75,876,438
Financial Liabilities16,604,497 16,604,497 Accounts Payable - Current 14,259,999 14,259,999
2,824,245 2,824,245 Borrowings 2,203,791 2,150,6792,783,702 2,783,702 Borrowings - Non Current 15,315,202 13,206,621
22,212,444 22,212,444 31,778,992 29,617,299
(b) Interest Rate Risk
The following table details the City of Canning’s exposure to interest rate risks as at 30th June 2013.
Average Variable NonInterest Interest Current Non-Current Interest Total
% Rate Bearing $ $ $ $ $
Financial AssetsCash 4.41 3.97 2,996,760 - 14,010 3,010,770Investments 4.41 3.97 66,201,459 - - 66,201,459Trade Receivables-Current - - - - 6,664,209 6,664,209
69,198,219 - 6,678,219 75,876,438
Financial LiabilitiesAccounts Payable - Current - - - - 10,231,000 10,231,000Borrowings 3.92 - 2,203,791 15,315,202 - 17,518,993
2,203,791 15,315,202 10,231,000 27,749,993
(c) Council does not have any material credit risk exposure to any single debtor under any financial instrumentsentered into.
(d) The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the notesto and forming part of the Annual Financial Statements.
2011/2012 2012/2013
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City of Canning Annual Report 2012/2013Page 66
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(e) Investment of Council Funds:
Council funds may be invested in one or more of the following approved financial products:- Fixed Term Deposits- Commercial Bank Bills- Government Bonds- Town Planning Schemes - Public Open Space Acquisition- Investments of equivalent standing to Term Deposits including aspects of return, security and liquidity.
Council's Policy allows for funds to be invested with the following financial institutions:
- Licensed Australian Banks with a BBB rating or better as set by Standard and Poors. The institution must be an Approved Deposit-Taking Institution (ADI's) as defined under the Banking Act 1959 - Bonds Issued and guaranteed by the Commonwealth, State or Territory Government - Town Planning Schemes - Public Open Space Acquisition
(f) Credit Risk
Current NonCurrent
Current NonCurrent
$ $ $ $Financial Assets
1,420,269 584,241 Rates and Annual Charges 1,648,454 548,676304,897 3,560,627 Under Ground Power 454,899 4,707,947
1,640,694 - Interest 1,813,914 - - 1,185,728 TPS 21 - 1,346,574
737,747 - Goods and Services Tax 438,377 - 2,248,852 - General Debtors 2,308,566 - 6,352,459 5,330,596 6,664,209 6,603,196
The Council's Investment Policy (AF306) was reviewed during 2012/13 following amendments to the Local Government (FinancialManagement) Regulations. In part, policy states the following;
The City's investments are conducted in accordance with the above policy and it is intended that all investments will be held until their maturity.
The City's receivables are classified as Rates and Annual Charges, Interest, Goods and Services Tax and General Debtors. Rates andAnnual Charges are charges that are considered as charges against the property and as such are considered being secured by theProperty to which they relate. The City accounts for Interest as part of its receivables as and when investments are made and acommitment from Financial Institutions is received for payment of the investment earnings. Good and Services Tax represents moniesowed by the Australian Taxation Office to the City. The City's General Debtors include receivables for goods and services provides tomembers of the community, government departments and businesses. The City has exposure to credit risk in that debtors may not beable to meet their commitments to repay debts. The City reviews its outstanding debts regularly and commences a variety of recoverytechniques in accordance with its Debt Recovery Procedures. The City reviews outstanding debts annually and provides a provisionshould debts become doubtful.
2011/2012 2012/2013
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(g) Market Risk
Actual Actual2011/2012 2012/2013
$ $752,120 Impact of 1% Movement in Interest Rates on Investment Earnings (+/-) 708,657
1,880,300 Impact of 2.5% Movement in Interest Rates on Investment Earnings 1,771,643
Total TotalInvestments Investments
2011/2012 Current Non Current 2012/2013 $ $ $ $
57,421,835 Term Deposits 60,701,459 - 60,701,459 6,000,000 Floating Rate Notes 5,500,000 - 5,500,000
63,421,835 66,201,459 - 66,201,459
(h) Liquidity Risk
Less than 1 to 5 Greater than Contractual Carrying 1 year years 5 years Value Value
$ $ $ $ $Financial Liabilities
Accounts Payable - Current 14,259,999 - - 14,259,999 14,259,999Borrowings - Principal 2,203,791 9,697,921 5,617,283 17,518,995 17,518,995Borrowings - Interest 665,068 1,777,514 460,204 2,902,786 -
17,128,858 11,475,435 6,077,487 34,681,780 31,778,994
The City has investments in Financial Instruments that may be subject to market rate risk in the event that the investments are not held to maturity. The City's investments comprise;
Payable and borrowings are both subject to liquidity risk - that is the risk that insufficient funds may be on hand to meet paymentobligations as and when they fall due. Council manages this risk by monitoring its cash flow requirements and liquidity levels andmaintaining an adequate buffer. Payment terms can be extended and overdraft facilities drawn upon if required.
The maturity analysis for the City's financial liabilities is detailed as follows;
The City has investments in Financial Instruments that are subject to interest rate risk in that future cash flows may fluctuate because ofchanges in market interest rates.
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
23 POSITION AT COMMENCEMENT OF FINANCIAL YEAR
(a)Adopted
ACTUAL Budget ACTUAL2011/2012 2012/2013 2012/2013
$ $ $ Current Assets
56,421,835 Investments 48,146,314 66,201,4594,788,631 Cash at Bank 3,214,661 2,996,760
11,360 Cash on Hand 11,360 14,0106,073,579 Receivables 3,380,210 6,199,759
204,380 Stock on Hand 195,816 179,9181,460 Prepaid Expenses 1,460 48,126
67,501,245 54,949,821 75,640,032Less Current Liabilities
780,453 Interest Received in Advance 413,671 989,8963,891,181 Income Received in Advance 3,868,944 3,039,1037,023,869 Accounts Payable 6,792,397 4,559,8312,969,324 Accrued Annual Leave 3,154,936 3,394,2641,606,846 Accrued Long Service Leave 1,722,578 2,616,781
16,271,673 15,952,526 14,599,875SURPLUS OF CURRENT ASSETS OVER
51,229,572 CURRENT LIABILITIES 38,997,295 61,040,1577,000,000 Add Back Non Current Investments - -
(41,602,221) Less Cash Backed Reserves and Restricted Funds (39,403,492) (50,746,852)
16,627,351 OPENING/CLOSING FUNDS (406,197) 10,293,305
(b) STATEMENT OF RECONCILIATION OF NET CURRENT ASSETS BROUGHT FORWARD
Net Current Asset detailed in the 2012/2013 Annual Budget $16,529,285Net Current Assets Brought Forward as at 1st July 2012 $16,627,351Variance - Surplus / (Deficit) $98,066
24 CAPITAL EXPENDITURE BY PROGRAM
Actual Capital Expenditure incurred by Program is summarised as follows:
Program Furniture Land Plant Totaland and and Roads Recreation Other
Equipment Buildings Equipment Facilities$ $ $ $ $ $ $
Governance 562,974 43,214 - - - - 606,188Law, Order, Public Safety 18,613 - 180,252 - - - 198,865Health 13,636 - 18,837 - - - 32,473Education and Welfare 25,374 168,127 39,514 - - - 233,015Housing - 37,077 - - - 37,077Community Amenities - 18,279 958,885 - - - 977,164Recreation and Culture 63,767 4,477,605 24,981 - 1,882,953 - 6,449,306Transport - 18,927 - 9,628,205 - - 9,647,132Economic Services - - - - - - - Other Property & Services 24,800 550,000 2,519,666 - - - 3,094,466
TOTAL 709,164 5,313,229 3,742,135 9,628,205 1,882,953 - 21,275,686
DETERMINATION OF SURPLUS / (DEFICIT) BROUGHT FORWARD AND CARRIED FORWARD
In accordance with Financial Management Regulation 36(1)(b) the following reconciliation is provided between the Net Current Assets carried forward from the previous financial year, compared to the Net Current Assets detailed in the 2011/2012 Annual Budget.
Infrastructure
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
25 FINANCIAL INFORMATION BY RATIO
2010/2011 2011/2012 2012/2013
Current Ratio 1.49 1.81 1.48Asset Sustainability Ratio 0.56 0.37 0.55Debt Service Cover Ratio 3092.16 122.49 0.43Operating Surplus Ratio 0.01 -0.02 -0.13Own Source Revenue Coverage Ratio 0.85 0.83 0.77
The above ratios are calculated as follows:
Current Ratio Current Assets minus Restricted AssetsCurrent Liabilities Minus Liabilities Associated with Restricted Assets
Debt Service Cover Ratio Annual Operating Surplus Before Interest and DepreciationPrincipal and Interest
Own Source Revenue Coverage Ratio Own Source Operating RevenueOperating Expense
Operating Surplus Ratio Operating Revenue minus Operating ExpenseOwn Source Operating Revenue
Asset Sunstainability Ratio Capital Renewal and Replacement ExpenditureDepreciation
RATIO INFORMATION
2010/2011 2011/2012 2012/2013
Asset Consumption Ratio N/A N/A 0.64Asset Renewal Ratio N/A N/A 1.20
The above ratios are calculated as follows:
Asset Consumption Ratio Depreciated Replacement Cost or Depreciable AssetsCurrent Replacement Cost of Depreciable Assets
Asset Renewal Funding Ratio NPV of Planned Capital Renewals over 10 YearsNPV of Required Capital Renewals over 10 Years
The following information relates to those ratios which only require an attestation they have been checked and are supported byverifiable information.
N/A - In keeping with amendments to Local Government (Financial Management) Regulation 50, comparatives for the two preceding years (being2011/2012 and 2010/2011) have not been reported as financial information is not available.
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City of Canning Annual Report 2012/2013Page 70
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
26 TRADE AND OTHER RECEIVABLES
Receivables due to the City include the following:
ACTUAL ACTUAL2011/2012 2012/2013
$ $Current
1,056,198 Rates 1,304,000 351,180 Sanitation 325,949
8,117 Swimming Pool Charges 3,325 4,774 Underground Power 15,180
583,073 Private Works 397,326 3,380,407 General 3,727,758
(73,934) Less Provision for Doubtful Debts (2,604)737,747 Goods and Services Tax 438,377 151,731 Under Ground Power Debtors - Wilson West 159,575 153,166 Under Ground Power Debtors - Bentley East 161,084
- Under Ground Power Debtors - Wilson East 134,239 6,352,459 6,664,209
Non Current523,858 Rates Outstanding-Pensioner Deferred 489,168
60,383 ESL Outstanding-Pensioner Deferred 59,507 1,771,937 Under Ground Power Debtors - Wilson West 1,612,361 1,788,690 Under Ground Power Debtors - Bentley East 1,627,607
- Under Ground Power Debtors - Wilson East 1,467,979 4,144,868 5,256,622
27 INVENTORIES
ACTUAL ACTUAL2011/2012 2012/2013
$ $
204,380 Comprises of Construction Materials, Fuels and Consumables 179,918
All stock on hand at balance date has been valued at cost.
28 DEVELOPMENT COSTS
Development costs represent preliminary expenditure on Town Planning Schemes financed by the City.
ACTUAL ACTUAL2011/2012 2012/2013
$ $ Development costs to be recovered
1,458,536 Town Planning Scheme No 21 1,619,3821,458,536 1,619,382
Development costs over recovered(25,479) Town Planning Scheme No 29 (25,479)
(247,329) Town Planning Scheme No 38 (247,329)(272,808) (272,808)
1,185,728 TOTAL DEVELOPMENT COSTS 1,346,574
Town Planning Schemes 21
Town Planning Schemes 29 and 38
Further costs are to be incurred in relation to the Schemes, the Over Recovery of Scheme Costs is considered temporary.
Deferred pensioners rates represent amounts owing by pensioners who have chosen to defer the payment of their rates in accordance with the Rates and Charges (Rebates and Deferments) Act 1992.
Recovery of Costs are subject to as and when participants in the Schemes subdivide their land holdings in accordance with therelevant Scheme Texts and Maps.
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
29 TRADE AND OTHER PAYABLES
ACTUAL ACTUAL2011/2012 2012/2013
$ $ Income Received in Advance
1,629,466 Crossover Construction Fees 1,907,0552,261,715 Other 1,132,048
780,453 Interest Received in Advance 989,8964,671,634 Sub Total 4,028,999
Accounts Payable1,368,352 Kerb and Footpath Deposits 1,428,9371,911,146 Canning Lodge Accommodation Bonds 2,335,1468,653,365 Materials, Goods and Services Received (General Creditors) 6,466,916
11,932,863 Sub Total 10,231,00016,604,497 14,259,999
30
Provisions for employees’ entitlements at balance date are as follows:
ACTUAL ACTUAL2011/2012 2012/2013
$ $
Current2,969,324 -Accrued Annual Leave 3,394,2641,606,846 -Accrued Long Service Leave 2,616,7814,576,170 Sub Total 6,011,045
Non Current
1,137,770 - Accrued Long Service Leave 634,9921,137,770 Sub Total 634,992
5,713,940 6,646,037
PROVISIONS
Accrued Long Service Leave Liability has been calculated under the provisions of AASB 119 and in accordance with the provision of the Local Government (Long Service Leave) amendment Regulations 1983.
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City of Canning Annual Report 2012/2013Page 72
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
In addition to the above entitlements, Council’s Policy provides for the following:
(i)
(ii) The provision of a gratuity, as a token of appreciation, to officers and employees who are retiring as follows:
Upon resignation, termination or retirement of an Employee, Council shall as a token of appreciation as recognition foryears of continuous service, provide the following:
The payment made shall be the greater of:
(i) Prior to completion of ten (10) years service - Benefit Nil.
(ii) On completion of ten (10) years service - Benefit - One days salary.
(iii) On completion of eleven (11) years service and above - Benefit - One days salary plus 75% of a day's salary for each completed year of service over ten (10) years
or
(iv) On completion of twenty (20) years to twenty nine (29) years of service - Benefit - $7,500 subject to the employee having accumulated sick leave entitlement, to the extent not taken to a total of not less than 75% of the maximum sick leave which can be accumulated.
or
(v) On completion of thirty (30) years and above - Benefit - $15,000 subject to the employee, having accumulated sick leave entitlement to the extent not taken to a total of not less than 75% of the maximum sick leave which can be accumulated.
(vi) A Pro-rata payment shall apply for part time employees.
(viii) Any further recommended payments must be referred to Council for approval.
(viii) The Chief Executive Officer shall use his or her discretion to waive any rights to the above benefits in cases where an employee is dismissed by Council for reasons of misconduct or unsatisfactory work performance.
(iii) Contract of Employment - Executive Officers and Managers.The City has entered into Contracts of Employment with its five Executive Officers and eighteen Managers (23 Officers).
In the event that the City has not agreed to employ the Officers after the expiration of the Contract period (5 years), a liabilitymay arise as follows:
(a) applicable tax shall be paid;
or
(b) cash salary less any applicable tax shall be paid;
or
(c) applicable tax shall be paid.If the Officer is 55 years of age or over at the time employment is terminated, 50% of the annual current salary, less any
The provision of a watch, suitably inscribed, the value of which (together with engraving costs) is not to exceed $200.00, to thoseofficers or employees who have completed ten (10) years service with the Municipality.
The provision of a watch, suitably inscribed, the value of which (together with engraving costs) is not to exceed $400.00, to thoseofficers or employees who have completed twenty-five (25) continuous years service with the Municipality.
Alternatively, a recipient may make a written request to the Chief Executive Officer for a donation to be made (in lieu of the watch) to arecognised charity of their choice.
Council’s yearly liability is estimated at up to $3,000 and considered immaterial and has not been brought into account in thesestatements.
If the Officer is under the age of 45 years at the time employment is terminated, 30% of the annual current cash salary, less any
If the Officer is 45 years of age but under 55 years of age at the time employment is terminated, 40% of the annual current
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City of Canning Annual Report 2012/2013Page 73
City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
31 ROSSMOYNE AND WILSON RETIREMENT VILLAGES-RESIDENTS’ EQUITY
The Resident’s Equity is summarised as follows:
ACTUAL ACTUAL2011/2012 2012/2013
$ $4,772,743 Resident’s Equity Opening Balance 5,702,737
929,994 PLUS Capital Gain on the re-allocation of Units 20,0005,702,737 Resident’s Equity Closing Balance 5,722,737
32 TOWN PLANNING SCHEMES
(a) With Overdraft Facility
Statement of Revenue and ExpenditureFor the Year Ended 30 June 2013
DESCRIPTION TP23 TPS24 TOTAL$ $ $
RevenueValuation - - - Scheme Income - - - Interest on Investments 639 5,866 6,504Reimbursement - Drainage Construction - - -
639 5,866 6,504
ExpensesRoad Construction - - - All other Brown Roads - - - Cycleways - - - Valuation Expenses - - - Legal Expenses - - -
- - -
Net Income Over Expenses 639 5,866 6,504
Bank Balance As At 01.07.12 12,723 114,772 127,495
Bank Balance As At 30.06.13 13,362 120,638 133,999
Deficit/Surplus Represented by:Assets- Cash At Bank 1,360 6,637 7,997- Investments 12,000 114,000 126,000
NET ASSETS OVER LIABILITIES 13,360 120,637 133,997
TOWN PLANNING SCHEMES
(i) Town Planning Scheme No 23
The Overdraft facility was established in August 1973 for the sum of $500,000.
Purpose - Implementation of Guided Development Town Planning Scheme No. 23.
(ii) Town Planning Scheme No. 24
The Overdraft facility was established in October 1976 for the sum of $400,000.
Purpose - Implementation of Guided Development Town Planning Scheme No. 24.
The Resident’s Equity in the Villages amounted to $5,722,737 which is in exchange for their life occupancy of the Units.
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
(b) With No Overdraft Facility
Statement of Revenue and ExpenditureFor the Year Ended 30 June 2013
DESCRIPTION TPS21 TPS29 TPS38 TOTAL $ $ $ $
RevenueContributions - Valuation Fees 24,886 - - 24,886Contributions - Scheme Costs 118,575 - - 118,575
ExpensesUnderground Power - - - - Valuations (35,721) - - (35,721)Legal Costs - - - 0Roadworks Abutting POS (67,086) - - (67,086)Land Acquisition - Orange Roads (201,500) - - (201,500)
Funds Advanced by Municipality (160,846) - - (160,846)
Funds Advanced As At 01.07.12 (1,458,536) 25,479 247,329 (1,185,728)
Funds Advanced As At 30.06.13 (1,619,382) 25,479 247,329 (1,346,574)
Represented by:Assets- Development Costs Capitalised 1,619,382 - - 1,619,382
Liabilities- Development Cost Over Recovered - (25,479) (247,329) (272,808)
NET ASSETS OVER LIABILITIES 1,619,382 (25,479) (247,329) 1,346,574
33 JOINT VENTURES
Withdrawal from Joint Venture- Southern Metropolitan Regional Council
The City had no other joint venture as at the end of financial year.
34 CONTINGENT LIABILITY
Southern Metropolitan Regional Council (SMRC)
At a Special Meeting held on 19th February 2009, the Council resolved to give notice of its intention to withdraw from the SouthernMetropolitan Regional Council (SMRC) and the associated projects. The terms of the City's withdrawal are governed by theagreements which specify conditions relating to the City's future obligations and distribution of assets and liabilities. The City'swithdrawal took effect as at the 30 June 2010.
The City of Canning was a member of the SMRC, which was established via an Establishment Agreement in 1998. The SMRC wasresponsible, amongst other things, for three major projects: - The Regional Resources Recovery Centre Project (RRRC) - The Office Accommodation Project (Office Project) - The Regional Community Greenhouse Project
During the current year the City refinanced its loan liability payable to the Southern Metropolitan Regional Council (SMRC) andincorporated a new loan for $12,845,647 with a shorter repayments term onto the balance sheet. The refinancing achieved a significantsavings to the ratepayers and concludes the City's joint venture with the Southern Metropolitan Regional Council. For details of the newloan refer to note 7.
As a result of refinancing of the City's share of loan payable to the Souther Regional Metropolitan Council (SMRC) as mentioned in note33 above, the City did not have any contingent liability on this account as at the year end.
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
35 SEGMENT REPORTING
Residential Other Aged Care Segments Total
Current Year Information for Canning Lodge 2012/2013 2012/2013 2012/2013$ $ $
Segment ExpensesEmployee Costs (1,408,769) (45,791,677) (47,200,446)
- Care Employees (1,193,933) - Other Employees (214,836)
Materials and Contracts (246,505) (21,865,723) (22,112,228)Depreciation (88,831) (17,262,983) (17,351,813)Other (64,074) (32,472,824) (32,536,897)
(1,808,178) (117,393,206) (119,201,384)Segment RevenuesFees and Charges 779,922 27,735,426 28,515,348
715,55364,370
Government Grants 833,592 13,316,480 14,150,072Other 88,566 66,160,057 66,248,623
88,566
1,702,080 107,211,963 108,914,043
Segment Result (106,098) (10,181,243) (10,287,341)
Segment AssetsCurrent Assets 4,076,538 72,027,944 76,104,482Non - Current Assets 2,645,058 602,259,442 604,904,500
6,721,596 674,287,386 681,008,982
Segment LiabilitiesCurrent Liabilities (2,504,575) 24,979,410 22,474,835 - Accommodation Bonds (2,335,146)Non - Current Liabilities (34,145) 21,707,076 21,672,931
(2,538,720) 46,686,486 44,147,766
Net Assets for Segment 4,182,877 720,973,871 725,156,748
Acquisition of Property, Plant, Furniture and Equipment 71,312 21,204,374 21,275,686
In accordance with the Aged Care Act 1997 and the Residential Care Subsidy Principles provided under this Act, Council provides the following segment reporting relating to Residential Aged Care in relation to its services conducted at Canning Lodge.
- Resident Charges- Bond Retentions
- Interest
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City of Canning Annual Report 2012-2013Notes to and forming part of the
Annual Financial Statements
Residential Other Aged Care Segments Total
Prior Year Comparative information for Canning Lodge 2011/2012 2011/2012 2011/2012$ $ $
Segment ExpensesEmployee Costs (1,303,125) (39,402,174) (40,705,299)
- Care Employees (1,123,492) - Other Employees (179,633)
Materials and Contracts (352,595) (27,195,889) (27,548,484)Depreciation (55,729) (15,801,076) (15,856,805)Other (83,074) (13,284,642) (13,367,716)
(1,794,523) (95,683,781) (97,478,304)Segment RevenuesFees and Charges 728,059 25,435,351 26,163,410
671,01057,049
Government Grants 968,798 12,608,334 13,577,132Other 104,379 70,299,199 70,403,578
104,379
1,801,236 108,342,884 110,144,120
Segment Result 6,713 12,659,103 12,665,816
Segment AssetsCurrent Assets 3,271,251 66,958,530 70,229,781Non - Current Assets 754,006 589,858,277 590,612,283
4,025,257 656,816,807 660,842,064
Segment LiabilitiesCurrent Liabilities (2,049,457) (22,073,132) (24,122,589) - Accommodation Bonds (1,766,481)Non - Current Liabilities (34,145) (10,366,990) (10,401,135)
(2,083,602) (32,440,122) (34,523,724)
Net Assets for Segment 1,941,655 624,376,685 626,318,340
Acquisition of Property, Plant, Furniture and Equipment 12,242 37,675,376 37,687,618
36
Actual Actual2011/2012 2012/2013
629 Number of Full time Equivalent Employees as at Balance Date 681
- Resident Charges- Bond Retentions
- Interest
NUMBER OF EMPLOYEES
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