Financial Management Report - February 2017 · The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and

Ordinary Meeting of Council 12 April 2017

1

5.2 FINANCIAL MANAGEMENT REPORT - FEBRUARY 2017

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

Disclosure of Interest: Nil

Authorised Officer: (Acting Executive Manager Corporate)

KEY ISSUES

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

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

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

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

It is recommended that Council resolve to note the monthly financial management reports for the period ended 28 February 2017.

BACKGROUND

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

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

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

In addition under regulation 34(5) of the Regulations each financial year, local government is to adopt a percentage or value, calculated in accordance with AASB 1031 to be used in the statement of financial activity for reporting material variances.


2

The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and position of the City. The materiality threshold adopted by Council, together with the Annual Budget for 2016/2017 is variances greater than 10% of the original adopted budget and a value greater than $10,000.

DETAILS

The financial management report for the period ended 28 February 2017 is included as an attachment to this report.

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

1. Statement of Comprehensive Income

The actual revenue from ordinary activities for the year to date is $162.4m, this is greater than budget by $1.5m.

Expenditure from ordinary activities for the year to date is $90.2m, this is less than budget by $13.6m.

The net result is $81.3m surplus compared to $76.9m budgeted year to date.

2. Statement of Financial Position

Current Assets have decreased by $9.2m compared with January. The reduction mainly occurred within Rates Debtors and Cash and Cash Equivalents. Property, Plant and Equipment has increased by $5.6m for the month of February. Building Capital Works expenditure has contributed to this increase. A loan has been drawn down in February increasing Long Term Borrowings by $3.6m.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of February 2017 with a balance of $166m. Cash and Cash Equivalents at the end of February 2016 reflected a balance of $161.6m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending 28 February 2017.


3

STRATEGIC IMPLICATIONS

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

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

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

STATUTORY IMPLICATIONS

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

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolve to:

1) Note the financial statements and report for the month ended 28 February 2017 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

28th February 2017

Contents

1.0 Financial Summary 1.0

2.0 Statements of Comprehensive Income 2.1 By Nature & Type 2.2

By Program 2.3

3.0 Statements of Financial Position & Equity 3.1 Statement of Financial Position 3.2 Statement of Changes in Equity 3.3 4.0 Capital Payment 4.1 Capital Works Schedules 4.2 - 4.7 5.0 Cash and Investments 5.1 Investment Report 5.2 - 5.4 6.0 Debtors Rates Debtors 6.1 Sundry Debtors 6.2 7.0 Statement of Financial Activity 7.1 - 7.3

(With Variance Analysis Commentary) Statement of Financial Activity 7.4 Net Current Funding Position 7.5

Liquidity Over Three Years 7.5

8.0 Other Statutory Reports 8.1 Statement of Cash Flow 8.2

Rate Setting Statement 8.3

1.0

City of Swan - Financial Management Summary Report for the period ended 28th February 2017

2.0 Statement of Comprehensive Income (Performance)

Year to 28th February 2017 Annual AnnualBudget Bgt Var

$000's %

Revenue 162,360 160,881 1% 170,524 95%

Expenses (90,242) (103,841) -15% (156,793) 58%

Profit/Loss 72,118 57,040 21% 13,731 525%

Non-operating 9,136 19,863 -117% 61,477 15%

Net Result 81,254 76,903 5% 75,208 108%

3.0 Statement of Financial Position2016 2017 2017June January February$000's $000's $000's

Current

Assets 143,867 207,479 198,238

Liabilities 36,733 28,037 28,611

Non Current

Assets 1,377,045 1,398,462 1,404,106

Liabilities 41,718 46,529 50,018

Net Assets 1,442,461 1,531,375 1,523,715

4.0 Capital PaymentsYear to 28th February 2017 Annual Annual

Feb Actual/Comm Budget Var Budget Bgt Var

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

Buildings 20,808 20,545 101% 30,818 68%Drainage 2,742 4,389 62% 6,583 42%

Footpaths 947 735 129% 1,102 86%Parks 6,195 8,905 70% 13,357 46%

Roads 21,646 25,002 87% 37,503 58%P&E, Other 14,682 17,063 86% 25,595 57%

Total 67,020 76,639 87% 114,958 58%

5.0 Cash and InvestmentsVolume Held

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

Cash 11,732 20,819 1.2%

24 hr Call - 0 0.0%Cash Mgt - 0 0.0%

Floating Rate - 0 0.0%Term Deposits 158,200 145,200 2.7%

Total 169,932 166,019 2.0%

6.0 Debtors January February Change

$000's $000's %Trade Debtors

Current 210 307 46%> 30 Days 92 67 -27%> 60 Days 77 31 -60%> 90 Days 911 954 5%

Total Trade 1,290 1,359 5%Rates Debtors

Rates Debtors 30,768 26,203 -15%Other Debtors 4,719 3,978 -16%

Total Debtors 36,777 31,540 -14%

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

%

The net result was 5% above ytd budget for the second consecutivemonth.

Operating expenses maintained a below budget spend trend inFebruary. Timing differences were the main cause for the $5.3m positivevariance for Materials & Contracts while vacant positions were the maincause for the $3m positive result for Employee Costs. Additionally,Deprecation was below budget by $4.4m. During the 2015/16 year endasset review process, the useful lives of assets were revised, impacting ondepreciation charge rates.

Within Non-Operating income, $6.2m of the variance is attributed toCapital grants not received as anticipated and $3.5m is attributed to Profiton Disposal of Assets. The disposal of a Park asset has not occurred asanticipated. Once this materialises, the variance should decrease.

The February 2017 Cash and Cash Equivalentsbalance was $166m, $4.4m higher than the February2016 closing balance.

Rates debt collection has improved in the secondhalf of the financial year. Year to date, the City hasreceived 85% of rates levied, which is on par with 86%received in February 2016.

Interest rates from major Australian banks for threemonth term deposits were between 2.40% to 2.50%and for up to twelve months, were 2.60%. The RBA'sofficial cash rate remains at 1.5%.

Current Assets have decreased by $9.2m comparedwith January. The reduction mainly occurred withinRates Debtors and Cash and Cash Equivalents.

Property, Plant and Equipment has increased by$5.6m for the month of February. Building CapitalWorks expenditure has contributed to this increase.

A decrease in Trade and Other Receivables andCash And Cash Equivalents has contributed to thedecrease in the current ratio from 4.92 to 4.25.

A loan has been drawn down in Februaryincreasing Long Term Borrowings by $3.5m.

1.35

4.92

4.25

1.00 1.00 1.00

-

1.00

2.00

3.00

4.00

5.00

6.00

June 16 Jan-17 Feb-17

C.Assets C.Liabilities

Total Capital costs recorded at the end of February were $67m,comprising of $48.6m actual costs and $18.4m committed costs.

Expenditure for Buildings has surpassed budget expectations by $2.8m,with the following projects displaying significant expenditure: MidlandYouth Services Hub $2.5m, Pickett Park Community Facility $4.9m andCaversham Community Centre $3.1m.

Total spend for Roads was $21.6m, almost on par with its $21.9m ytdbudget. The ytd spend is mostly attributed to Hazelmere IndustrialInfrastructure Road $5.9m and Gnangara Road $6m.

Parks have realised 80% or $6.2m of $7.8m ytd budget, with ParadiseQuays accounting for $2m of this.

0

250

500

750

1,000

Current > 30 Days > 60 Days > 90 Days

$000

's

Trade Debtors

January February

AA+ to AA- 70%

A+ to A-

30%

Overall Trade Debtors have increased by 5%.

The current period has increased by 46% due to alarge number of invoices being issued during themonth. Full and partial payments were made bydebtors during the month, resulting in a decrease forthe 30 days and 60 days debtors of 27% and 60%respectively. An unpaid prosecution debt which isunder appeal has moved from the 60 days to the 90days plus debtors, causing an increase of 5%.

Rates Debtors excluding Emergency ServicesLevy, declined by 15% or $4.6m. The decrease waslower than January as there were no instalments ornotices due in February.

2.1

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

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

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

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

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

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

2.0 Statements of Comprehensive Income2.0 Statements of Comprehensive Income

2.2

Original Budget

2016/17

Revised Budget

2016/17

YTD CURRENTREVISED BUDGET@ 28 FEBRUARY

2017

YTD ACTUAL@ 28 FEBRUARY

2017$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities116,312,404 116,312,404 Rates Revenue 115,866,603 115,640,913 (225,690) - -

1,172,000 1,172,000 Service Charges 1,172,000 1,218,714 46,714 - -35,662,650 35,662,650 Fees & Charges 30,722,682 31,977,957 1,255,275 - -10,321,060 10,430,520 Operating Grants, Subsidies & Contributions 8,103,959 8,115,789 11,830 - -

5,751,290 5,751,290 Interest Earnings 4,184,162 4,244,029 59,867 - -1,051,160 1,195,160 Other Revenue 831,931 1,162,126 330,195 F 40%

170,270,564 170,524,024 Sub-Total Ordinary Revenue 160,881,337 162,359,528 1,478,191

Expenses from Ordinary Activities(74,643,550) (74,807,190) Employee Costs (49,415,774) (46,339,596) 3,076,177 - -(33,219,103) (33,470,173) Materials & Contracts (22,235,626) (16,949,681) 5,285,945 F 24%

(6,570,760) (6,570,760) Utility Charges (4,108,526) (3,717,001) 391,525 F 10%(37,518,100) (37,518,100) Depreciation on Non-Current Assets (25,012,067) (20,604,537) 4,407,530 F 18%

(2,141,200) (2,141,200) Interest Expenses (1,161,195) (1,003,731) 157,464 F 14%(668,280) (668,280) Insurance Expenses (882,630) (755,164) 127,466 F 14%

(1,616,720) (1,617,720) Other Expenses (1,024,943) (872,515) 152,428 F 15%

(156,377,713) (156,793,423) Sub-Total Ordinary Expenses (103,840,761) (90,242,225) 13,598,536

13,892,851 13,730,601 Ordinary Activities 57,040,577 72,117,303 15,076,727

Add Non-Ordinary Activities12,350,970 12,605,170 Non-Operating Grants, Subsidies & Contributions 9,778,157 3,620,997 (6,157,159) U (63%)22,496,510 22,496,510 Non-Operating Gifted Assets from Developers: Other - - - - -

7,203,730 7,203,730 Developer Contribution Plans: Cash 4,802,487 3,694,208 (1,108,279) U (23%)11,117,490 11,117,490 Developer Contribution Plans: In Kind - - - - -(4,083,130) (4,083,130) Land Ceded to the Crown - - - - -

5,566,820 5,566,820 Profit / (Loss) on Disposal of Assets 3,711,213 247,215 (3,463,998) U (93%)- 1,571,000 Profit / (Loss) on Impairment of Investments 1,571,000 1,574,446 3,446 - -

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

73,545,241 75,208,191 Net Result 76,903,435 81,254,172 4,350,737- - Other Comprehensive Income - - - - -

73,545,241 75,208,191 Total Comprehensive Income 76,903,435 81,254,172 4,350,737

Financial Ratios 2014 2015 2016 Current Month

OPERATING SURPLUS RATIO 22.00% 22.00% 23.00%

DEBT SERVICE COVER RATIO 11.17 13.73 8.93

OWN SOURCE REVENUE COVERAGE RATIO 1.05 1.10 1.15

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE CITY OF SWAN

FOR THE PERIOD 1 JULY 2016 to 28 FEBRUARY 2017

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

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

46.76%

22.27

1.71

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

2.3

Original Budget

2016/17

Revised Budget

2016/17

YTD CURRENTREVISED BUDGET@ 28 FEBRUARY

2017


2017 $ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities127,536,494 127,536,494 General Purpose Funding 124,167,898 124,007,643 (160,256) - -

166,830 166,830 Governance 104,375 475,339 370,964 F 355%2,333,190 2,324,650 Law Order & Public Safety 2,060,093 2,220,916 160,823 - -

271,000 271,000 Health 180,667 283,168 102,501 F 57%4,526,420 4,526,420 Education & Welfare 3,535,300 3,471,853 (63,447) - -

60,000 60,000 Housing 40,000 45,111 5,111 - -21,973,000 21,977,700 Community Amenities 21,453,367 22,835,795 1,382,428 - -

7,177,270 7,278,270 Recreation & Culture 4,901,464 4,715,149 (186,314) - -1,663,940 1,663,940 Transport 1,240,260 1,358,083 117,823 - -1,530,000 1,686,300 Economic Services 1,176,300 1,136,379 (39,921) - -3,032,420 3,032,420 Other Property & Services 2,021,614 1,810,094 (211,520) U (10%)

170,270,564 170,524,024 Sub-Total Revenue 160,881,337 162,359,528 1,478,191

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,942,622) (2,918,632) General Purpose Funding (1,637,585) (1,469,890) 167,695 F 10%(12,721,402) (12,651,411) Governance (8,289,541) (7,200,313) 1,089,229 F 13%

(6,073,486) (6,041,796) Law Order & Public Safety (4,020,122) (4,126,384) (106,262) - -(1,827,893) (1,828,563) Health (1,219,267) (1,114,606) 104,660 - -(9,357,259) (9,340,929) Education & Welfare (6,275,831) (5,526,953) 748,878 F 12%

(99,167) (99,167) Housing (66,111) (58,881) 7,230 - -(25,107,287) (25,227,007) Community Amenities (16,812,713) (16,090,286) 722,428 - -(51,024,352) (51,199,382) Recreation & Culture (34,273,383) (31,234,468) 3,038,915 - -(36,547,416) (36,617,156) Transport (24,202,081) (17,345,233) 6,856,847 F 28%

(6,052,841) (6,297,581) Economic Services (4,279,942) (3,528,875) 751,067 F 18%(2,482,786) (2,430,596) Other Property & Services (1,602,989) (1,542,604) 60,385 - -

(154,236,513) (154,652,223) Sub-Total Non-Borrowing Expense (102,679,566) (89,238,494) 13,441,072

Borrowing Costs Expense(559,810) (559,810) Governance (297,250) (244,721) 52,528 F 18%(702,950) (702,950) Recreation & Culture (389,909) (342,888) 47,021 F 12%(430,100) (430,100) Transport (221,025) (182,986) 38,039 F 17%(448,340) (448,340) Other Property & Services (253,011) (233,136) 19,875 - -

(2,141,200) (2,141,200) Sub-Total Borrowing Costs (1,161,195) (1,003,731) 157,464

13,892,851 13,730,601 Net Operating Result 57,040,577 72,117,303 15,076,726

Non-Operating Grants, Subsidies & Contributions18,321,220 18,321,220 Governance 4,802,487 3,694,208 (1,108,279) U (23%)

200,000 200,000 Law Order & Public Safety 133,333 15,000 (118,333) U (89%)332,210 322,210 Education & Welfare 211,473 83,148 (128,325) U (61%)

13,606,060 13,764,940 Recreation & Culture 2,562,920 848,233 (1,714,687) U (67%)20,709,210 20,814,530 Transport 6,870,430 2,674,616 (4,195,814) U (61%)53,168,700 53,422,900 14,580,643 7,315,205 (7,265,437)

Land Ceded to the Crown(1,918,710) (1,918,710) Recreation & Culture - - - - -(2,164,420) (2,164,420) Transport - - - - -(4,083,130) (4,083,130) - - -

Profit/(Loss) on Disposal of Assets5,059,470 5,059,470 Recreation & Culture 3,372,980 (2,110) (3,375,090) U (100%)

507,350 507,350 Transport 338,233 249,325 (88,908) U (26%)5,566,820 5,566,820 3,711,213 247,217 (3,463,999)

Profit/(Loss) on Impairment of Investments- 1,571,000 General Purpose Funding 1,571,000 1,574,446 3,446

Unrealised Gain from Other Financial Assets: EMRC5,000,000 5,000,000 General Purpose Funding - - -

73,545,241 75,208,191 Net Result 76,903,435 81,254,172 4,350,737Other Comprehensive Income

73,545,241 75,208,191 Total Comprehensive Income 76,903,435 81,254,172 4,350,737


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM CITY OF SWAN

3.1

Description

2. Statement of Change in Equity

Financial Ratios 2014 2015 2016 Current MonthCURRENT RATIO 1.52 1.67 1.34 4.25

QUICK RATIO 1.52 1.67 1.34 4.24

UNTIED CASH TO TOTAL CREDITORS 3.83 5.50 2.72 27.41

1. Statement of Financial Position

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

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

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

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

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

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

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @28 FEBRUARY 2017

ACTUAL @30 JUNE 2016

Current AssetsCash and cash equivalents 166,019,240 133,247,518Trade and other receivables 31,539,718 9,673,594Other Assets 341,544 776,014Inventories 337,769 169,839

Total: Current Assets 198,238,270 143,866,966

Non Current AssetsTrade and other receivables 2,570,123 2,368,749Property, plant and equipment 1,341,170,312 1,314,310,707Other Financial Assets 60,365,712 60,365,712

Total: Non Current Assets 1,404,106,146 1,377,045,169

Total Assets 1,602,344,417 1,520,912,135

Current LiabilitiesShort term borrowings 2,469,594 5,412,027Trade and other payables 11,948,324 18,472,821Income in advance 1,361,747 -Provisions 12,830,985 12,847,797

Total: Current Liabilities 28,610,650 36,732,645

Non Current LiabilitiesLong term borrowings 45,435,488 36,673,830Trade and other payables 3,078,006 3,741,051Provisions 1,504,897 1,303,402

Total: Non Current Liabilities 50,018,391 41,718,283

Total Liabilities 78,629,041 78,450,928

NET ASSETS 1,523,715,376 1,442,461,204

Equity AccountsAccumulated Surplus 956,940,786 881,986,083Asset Revaluation Reserves 463,276,541 463,276,541Cash Backed Reserves 103,498,051 97,198,580

TOTAL EQUITY 1,523,715,376 1,442,461,204

CITY OF SWAN STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2017

3.3

RETAINEDSURPLUS

ASSET REVALUATION RESERVES

RESERVES CASH / INVESTMENT BACKED

TOTALEQUITY

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

Prior Period Adjustments 1,552,169 (16,321,571) - (14,769,402)

Restated Balance as at 1 JULY 2014 716,405,629 373,941,196 67,796,018 1,158,142,843

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

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

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

Balance as at 30 JUNE 2015 801,837,253 448,062,744 83,920,396 1,333,820,392

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

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

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


Balance as at 30 JUNE 2016 881,986,083 463,276,541 97,198,580 1,442,461,204

Net Result 81,254,172 - - 81,254,172

Total Other Comprehensive Income - - - -


Balance as at 28 FEBRUARY 2017 956,940,786 463,276,541 103,498,051 1,523,715,376

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS28-Feb-17 30-Jun-16

Cash / Investment Backed Reserves

Aged Services Asset Replacement 377,922 267,804

City Asset Replacement 8,873,183 6,269,851

Ellenbrook Community Facilities 281,875 559,574

Vale Community 1,401,354 1,442,580

General Insurance 500,000 500,000

Gravel Pit Rehabilitation 387,518 313,637

Hazelmere/Guildford Drainage 1,431,946 1,368,745

Midland District Drainage Development 4,746,675 5,538,128

Plant & Equipment Reserve 4,407,635 1,907,521

Waste Management 6,499,860 7,275,188

Employee Entitlements - LSL 7,058,504 5,958,432

Hazelmere Industrial Area Infrastructure - Stage 2 5,622,819 6,901,504

Ellenbrook Bridge 2,057,786 2,166,748

Strategic Development 3,366,761 1,733,866

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 16,009,826 14,841,917

- Caversham 9,167,539 10,214,013

- Dayton (West Swan East) 26,662,756 23,766,614

Other Restricted Assets

- Drainage 66,084 66,084

- Footpath 242,258 227,958

- Malaga Parking 175,650 162,500

- Midland Parking 35,000 35,000

- Ellenbrook Parking 842,517 842,517

- Roadwork 2,514,383 2,753,528 - Unspent Specific Grants - 1,388,290

- Public Art 768,199 696,580

Sub total Cash / Investment Backed Reserves 103,498,051 97,198,580

Add: other restricted cash / investment assets (i.e Bonds) 3,078,006 5,325,651Total of restricted cash / investment assets 106,576,057 102,524,229Add: Unrestricted cash / investment assets (i.e. MUNI funds) 59,443,183 30,723,289TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 166,019,240 133,247,518

Consisting of: Cash and Cash Equivalents 166,019,240 133,247,518

166,019,240 133,247,518


CITY OF SWAN STATEMENT OF CHANGES IN EQUITY

4.1

CommentsBullsbrook Waste Transfer Station recognised additional expenditure of $345k in February, resulting in a total spend of

$1.9m against $1.1m annual budget. A budget adjustment to address the above budget spend is pending. Drainage and asphalting works plus the laying of concrete slabs for five

sheds have been completed. The following works are scheduled to be done between March and April 2017: installation of sheds, rock pitching, spreading of mulch and installation of new boundary fences.

Millhouse Road/Chateau Place Roundabout has realised $779k of its $919k annual budget, with $265k of this beingrecorded in February. Works for the construction of a single lane roundabout are progressing, with drainage and road widening works almost complete. The relocation of poles has been delayed by Western Power. As a result, works are likely to be carried over to 2017/18.

In February, Hepburn Avenue expended $597k realising 29% of its $3.9m annual budget. The laying of limestone (sub-

base layer) from Bellefin Drive towards Marangaroo Drive commenced in February, with completion expected in March 2017. It is anticipated that construction works for this project will be y the end of the financial year

Total spend for Hazelmere Industrial Area Infrastructure Road amounted to $5.9m compared to its $9.5m annualbudget. Construction works are progressing between Stirling Crescent and Lakes Road. Western Power and Telstra service relocations have now commenced after facing delays at the end of 2016. Despite the delays, construction is on schedule for completion in 2016/17.

4.0 Capital

0

20,000

40,000

60,000

80,000

100,000

120,000

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

mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 16/17 Budget 16/17

Prior Year Actual Prior Year Budget

0

5,000

10,000

15,000

20,000

25,000

30,000

Buildings Drainage Footpaths Parks Roads P&E, Other

mill

ions

$

YTD Capital Works expenditure Actual & CommittedBudget

Current Budget YTD Expense Current Budget

JobNumber

JobName

FullYearExpense Actual Commited Total % of

BudgetFullYearRevenue

YTDRevenue

% ofBudget

BCW04134 Administration Building 722,930 111,313 143,432 254,745 35

BCW05104 Altone Park Library 69,000

BCW05106 Community Facilities 50,000

BCW05110 Midland Town Hall Build Imp 590,000 10,266 13,960 24,226 4

BCW05114 Minor Capital Building Projec 60,000 47,811 2,870 50,681 84

BCW05129 Guildford Visitor Centre 140,000 3,105 3,105 2

BCW05131 Midland Lotteries 120,000 75 870 945 1

BCW05137 Altone Leisure Centre 577,000 50,881 10,185 61,066 11

BCW06110 Ballajura Aquatic Centre 203,000 36,543 36,225 72,769 36

BCW06121 Toilet Renewals 18,000 10,392 10,392 58

BCW07103 West Swan Home Supp 40,000 9,971 20,230 30,201 76

BCW07108 Swan Park Recreation Centre 804,600 20,825 106,048 126,872 16

BCW07116 Airconditioner Renewal Progra 54,800

BCW07117 Lock & Key Replacement Progra 16,914 5,528 22,441

BCW07121 Percy Cullen Pavilion 220,000 20,210 20,210 9 200,000

BCW07122 South Ballajura Com Centre 35,000

BCW07124 Midland Sports Complex 136,120 52,905 2,627 55,532 41

BCW08109 Bullsbrook Waste Transfer Sta 1,060,640 1,308,048 565,303 1,873,351 177 200,000

BCW08115 Ballajura Library 5,200 5,198 5,198 100

BCW08116 Midland Junction Arts Centre 15,000 12,297 12,297 82

BCW08120 Midland Youth Services Hub 2,907,260 1,634,355 820,291 2,454,645 84 1,725,000

BCW09102 Bus Shelters 160,000 94,771 3,121 97,893 61 37,500

BCW09104 Bin Compounds 22,420 896 12,918 13,814 62

BCW09105 Energy Conservation Measures 3,150 3,150

BCW09106 Switchboards Renewal 14,000 3,672 3,672 26

BCW09108 Heritage Precincts 65,060 63,721 4,762 68,484 105

BCW10101 Asbestos Management Program 175,000 35,332 57,078 92,410 53

BCW10102 Integrated Systems Program 401,000 88,282 18,378 106,660 27

BCW11104 Ellenbrook DOS Sthn 391,900 38,729 104,769 143,498 37

BCW11106 Ellenbrook Leisure Centre 566,000 96,226 68,292 164,518 29

BCW11107 Ellenbrook Resource Centre 20,000 11,578 11,578 58

BCW11109 Building Disposal 24,000 2,000 2,000 8

BCW11110 Swan View Oval Pavilion 20,000 9,360 9,360 47

BCW11112 Malvern Springs Community Cen 287,500 287,500 287,500 100

BCW12102 Pickett Park Community Facili 7,034,300 3,193,491 1,675,575 4,869,065 69 736,250

BCW12103 Woodlake Community Centre 36,000 5,158 5,158 14

BCW12104 15 Keane Street Upgrade 298,000 304,038 304,038 102

BCW13101 Ballajura Place Office 298,000

BCW13102 Caversham Community Centre 3,916,000 2,151,882 960,798 3,112,680 79

BCW13104 Midland Oval 871,420

BCW13107 Old Mechanical Workshop 30,000

BCW14101 Altone Place Office 124,000 16,562 97,313 113,875 92

BCW14103 Brabham Community Centre 555,730 30,038 35,004 65,043 12

BCW14104 Dayton Community Centre 3,132,700 999,240 1,793,109 2,792,349 89

BCW14106 North Swan Park Pavilion 1,054,000 921,281 15,891 937,172 89

BCW14107 Rosher Oval Hall & Pavilion 1,248,000 1,208,116 17,521 1,225,637 98

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 28 FEBRUARY 2017

2/03/2017 1:47:20 PM


JobNumber

JobName



YTDRevenue

% ofBudget

BCW14109 Operations Centre 478,000 165,439 222,040 387,479 81

BCW15001 Hazelmere Hall 40,000 27,497 3,010 30,507 76

BCW15002 Koongamia Pavilion 139,500

BCW15003 Lowery Park Pavilion 227,000 230 230

BCW15004 Gidgegannup Fire Station 309,380 21,096 21,096 7 309,380

BCW15005 District Park Active- Buildin 285,000 116,693 160,564 277,257 97

BCW15006 Ewart Street 10,000 5,761 4,400 10,161 102

BCW16101 Stafford Court - Training Roo 180,000 155,826 9,395 165,221 92

BCW16102 Guildford Gaol 371,940 311,776 311,776 84

BCW16103 Jane Brook Community Centre 20,000 9,476 9,476 47

BCW16104 Malaga Transfer Station 20,000

BCW16105 Temporary Men's Shed 100,000 35,608 14,664 50,273 50

BCW16106 PA Midland Youth Hub 63,250 2,473 3,850 6,323 10

BCW16107 Dayton Pavilion 2 - East 29,595 29,595

BCW Building Capital Works 30,817,650 13,741,754 7,065,870 20,807,624 68 3,208,130 0 0

DRN04213 Midland Drainage 490,000 153,246 102,674 255,920 52

DRN06206 John St Midland 8,550 8,545 8,545 100

DRN07209 Morrison Road/Poynton Ave 286,000

DRN08203 Hazelmere/Guildford Drainage 1,020,000 309,060 508,744 817,804 80

DRN08205 Morrison Road 426,400

DRN10201 George St Midland 40,000 39,770 39,770 99

DRN12205 Hamersley Street 148,750 1,909 3,720 5,629 4

DRN13203 Ewart Street Midland 770,500 579,005 62,231 641,236 83

DRN13209 Other Drainage Upgrades 220,000 5,564 10,150 15,714 7

DRN14203 Elvire Street 325,000 109,658 1,035 110,693 34

DRN15001 Margaret Street 272,040 264,415 1,000 265,415 98

DRN15002 Gartrell Street 193,050 182,688 182,688 95

DRN15006 Ford Street 243,100 7,315 7,315 3

DRN15007 Spring Street 5,820 5,815 5,815 100

DRN15009 Fawell Street 56,500

DRN15010 Taylor Crescent 1,580 1,573 1,573 100

DRN15011 Cole Street 6,320 6,317 6,317 100

DRN15012 Bushby Street 405,000 22,243 10,820 33,063 8

DRN15014 Bellevue Heritage Railway 100,000 685 685 1

DRN16201 Guildfd Foreshore Restoration 175,000 1,449 1,449 1

DRN16202 Midland Foreshore Restoratio 310,000 33,483 15,984 49,468 16

DRN16203 Byers Road 443,300 420 420

DRN16204 Devon Road 260,000 149,776 6,331 156,106 60

DRN16206 Holmesdale Road 169,000 56,628 360 56,988 34

DRN16207 Plymouth Street 78,000 79,156 79,156 101

DRN16208 William Street 128,700

DRN Drainage 6,582,610 2,018,719 723,050 2,741,769 42 0 0 0

FTP06502 Footpaths New 115,000 24,529 21,862 46,391 40

FTP06505 Footpath Replacements 250,000 242,784 7,071 249,855 100

FTP09501 Swan Cycle Planning Project 680,850 614,266 22,811 637,077 94 230,000


2/03/2017 1:47:20 PM


JobNumber

JobName



YTDRevenue

% ofBudget

FTP10101 Universal Access - Footpath 30,000 6,660 6,326 12,986 43

FTP16501 Cranleigh Street 26,500 927 927 3

FTP Footpaths 1,102,350 889,165 58,070 947,236 86 230,000 0 0

GRP04100 Gravel Pit 232 232 67,254

GRP Gravel Pit 0 232 0 232 0 67,254

PEQ08104 CCTV - Safer Suburbs 200,000 4,541 4,541 2 200,000 15,000 8

PEQ10104 Website Development - SVC 82,210 82,215 82,215 100

PEQ11102 Midland Parking Technology 265,970 75,653 5,621 81,273 31

PEQ13102 COS Website Maintenance 73,870 159 159

PEQ14101 Asset Management Software 200,000

PEQ14102 Discovery Layer 33,800

PEQ14103 User Generated Content System 30,000

PEQ14104 Herne Hill - Telecomunication 331,140 529 33,300 33,829 10

PEQ15000 Fire Fighting Assets 40,000 10,349 10,349 26

PEQ15003 One Council Implementation 799,000 1,121,384 584,403 1,705,787 213

PEQ15004 Movie Trailer 3,673 3,673

PEQ16101 DCP Software 100,000 9,600 76,000 85,600 86

PEQ16102 Leisure System Replacement 396,000

PEQ16103 Midland Town Hall Sound Syste 100,000

PEQ16104 Radio Frequency ID Equipment 129,500 1,120 1,120 1

PEQ16105 Sea Containers 200,000 103,800 103,800 52

PEQ16106 Electric Vehicle Charge Stati 30,000

PEQ16107 Digital Asset Management 30,340

PEQ16108 People Counter 5,000

PEQ Plant & Equipment 3,046,830 1,330,808 781,539 2,112,347 69 200,000 15,000 8

PRK04324 Residential Street Trees 36,000 41,227 41,227 115

PRK04326 Minor Park Furniture 20,000 479 2,986 3,465 17

PRK04328 Rural Street Trees 20,000 13,274 13,274 66

PRK05304 Parks & Streetscapes Minor 200,000 57,971 27,208 85,179 43

PRK05307 Swan Regional Riverside Park 241,858

PRK05309 Tourism Signage 52,000 15,682 2,714 18,395 35 432

PRK05311 Emu Lake Restoration 344,000 187,186 15,505 202,691 59

PRK05317 Playgrounds - Ellenbrook 40,250

PRK05336 North Swan Pk Bowling Club 190,000 2,818 2,818 1

PRK06303 Jack Mann Oval 50,000 45,901 45,901 92

PRK06316 Coolamon Oval 35,000 15,662 14,591 30,253 86

PRK06318 Playgrounds - Aveley 692,300

PRK07309 Kings Meadow 100,000 14,468 65,956 80,424 80

PRK08302 Bellevue Landscape Upgrade 289,000 26,530 26,530 9

PRK08307 Bushland Fencing 205,500 5,876 3,029 8,905 4

PRK08318 Public Art 150,000 2,576 4,725 7,301 5

PRK09302 Chequers Club Bore/Irrigation 850,000 131,167 308,900 440,068 52

PRK09305 City Gateways Project 300,000 5,793 5,793 2

PRK10102 Playspace Replacemet Pgm 840,000 24,482 342,863 367,345 44


2/03/2017 1:47:20 PM


JobNumber

JobName



YTDRevenue

% ofBudget

PRK11101 Regional Open Space - Whitema 128,000 7,613 7,613 6

PRK11102 Reticulation/Hydrozoning 513,000 138,757 52,024 190,781 37

PRK11106 Ellenbrook DOS South 500,000 436,649 42,271 478,920 96 375,000 375,000 100

PRK12306 City Wide Fencing Water Bodie 10,000 3,795 3,795 38

PRK13301 Boat Ramp, Fishmarket Rsv Gfr 405,240 270,320 270,320 67 90,000 90,000 100

PRK13309 Sports Oval Lighting 225,000 52,921 83,359 136,280 61

PRK13311 John Stone Park 30,000 15,489 15,489 52

PRK14301 Paradise Quays 1,635,560 1,959,458 1,959,458 120

PRK14304 Bennett Springs Park 500,000 56,472 98,963 155,436 31 91,810

PRK14305 Brabham Neighbourhood Park 1,000,000 16,650 16,650 2

PRK14307 District Park Active 502,470 130,056 34,970 165,026 33

PRK14308 Foreshore Restoration 441,000 15,680 68,136 83,815 19 66,375

PRK14310 Midland Oval Master Plan 624,996 116,597 741,594

PRK14311 Parks Electrical Infrastructu 233,500 87,626 93,672 181,298 78

PRK14313 Gidgegannup Showgrounds 47,000 22,280 22,280 47

PRK14315 Annies Landing Playgrounds 46,000

PRK15000 Art Activation Street Banners 50,000 173 173

PRK15001 Coolamon Netball Courts 150,000 60,594 24,725 85,319 57

PRK15006 Dayton Local Park - Passive 100,000 1,142 1,460 2,602 3

PRK15007 Caversham Oval - DCP 1,300,000 62,457 100 62,557 5

PRK16301 Altone Parks BBQ & Water 40,000 37,855 37,855 95

PRK16302 Dayton Neighbourhood Park 584,950

PRK16303 Aveley Outdoor Fitness Equip. 172,500

PRK16304 Brigadoon RDA Arena Improvemt 100,000 97,565 97,565 98

PRK16305 Koongamia Oval Bore Replaceme 20,000 15,340 15,340 77

PRK16306 Dorrigo Park 20,000 7,573 282 7,855 39

PRK16307 Bremer Park 75,000 51,974 173 52,147 70

PRK16308 Sherlock Park 4,813 4,813

PRK16309 PA Ellenbrook DOS South 28,290 3,381 9,060 12,441 44

PRK16310 PA Waterhall Park Playspace 85,000 3,076 5,325 8,401 10

PRK Parks 13,356,560 4,660,517 1,534,874 6,195,390 46 556,810 773,665 139

RDN04403 The Promenade 500,000

RDN04410 Cassowary Drive 63,001

RDN04420 Millhouse Road 465,000 10,544 160,841 171,385 37

RDN04421 Cranleigh Street 35,000 1,138 5,109 6,247 18

RDN04426 Chittering Road 125,000 3,771 53,725 57,496 46 70,000 28,000 40

RDN04432 Albert Road 40,000 8,968 28,575 37,543 94

RDN04446 West Swan Rd/ Millhouse Rd 400,000 42,862 42,862 11

RDN05402 Street Lighting Upgrades 516,250 30,000 21,015 51,015 10

RDN05405 Traffic Safety Minor Projects 55,000 42,366 42,366 77

RDN05408 Morrison Road 232,260 12,488 223,560 236,048 102 190,306

RDN05423 Local Road Prog - City Wide 3,869,930 1,015,246 26

RDN05457 O'Brien Road 140,000 3,451 88,521 91,972 66

RDN05487 Kingsley Drive 75,000 230 230

RDN05497 Muriel Street 485,000 386,686 56,612 443,299 91

RDN06404 Hepburn Avenue 3,913,820 417,195 711,833 1,129,029 29 1,043,680


2/03/2017 1:47:20 PM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN06409 Johnson Street 180,000 85,421 48,208 133,628 74

RDN06420 Bridge Works 1,195,330 334,042 300,307 634,350 53 60,000

RDN06421 Investigation,Design Projects 150,000 152,608 3,994 156,602 104

RDN06437 West Parade 49,000

RDN06450 Lloyd Street 85,000 3,470 3,470 4

RDN07402 Local Road Program-Testing 75,000 21,079 21,079 28

RDN07403 Contributions For Works To 200,000 24,709 216,924 241,633 121

RDN07425 Beach Road/ Alexander Drive 119,926

RDN07426 Marangaroo Dr/ Illawarra Cres 8,435 8,435 81,932

RDN07451 Warbrook Road 140,000 25,336 96,788 122,125 87 140,000 56,000 40

RDN07452 Lord Street 3,267,275 164,777 164,777 5

RDN07454 Malaga Industrial Carparking 255,000 6,350 3,900 10,250 4

RDN08402 Carpark Kingfisher Park 175,000 132 156,504 156,636 90

RDN08427 Pinaster Parade 300,000 290,867 27,681 318,547 106

RDN08436 Jenkins Road 160,000 744 744

RDN08441 Campersic Road 30,936

RDN09403 Bellefin Drive 120,000 861 96,205 97,067 81

RDN09431 Oakover Road 30,000 937 31,184 32,121 107

RDN09440 Bishop Road 105,320 100,308 100,308 95 105,320 148,576 141

RDN10253 Henley Street 150,000 128,152 128,152 85

RDN11201 Hazelmere Ind Area Infrast RD 9,468,010 5,352,732 555,159 5,907,891 62

RDN11401 Benara Road 1,205,100 472,946 587,104 1,060,049 88 750,070 300,027 40

RDN11426 Meadow Street 400,000

RDN12403 Henley Brook Avenue 75,000 5,210 14,850 20,060 27

RDN13204 Gnangara Road 5,615,000 5,377,630 596,624 5,974,254 106 585,660

RDN13206 Joseph Road 150,000 148,989 30,388 179,377 120

RDN13210 Neaves Road 111,000 9,981 38,795 48,776 44 111,000 44,400 40

RDN14201 Ellenbrook Bridge 1,640,000 179,458 37,469 216,928 13

RDN15006 GNH/Bishop Road 1,400,000 1,324,608 32,976 1,357,583 97

RDN15008 Marshall Road/Lord Street 50,000 1,219 1,219 2

RDN15011 Mountjoy Street 15,000

RDN15016 Tyne Link 100,000 91,617 91,617 92

RDN15017 Victoria Road 460,000 17,280 374,352 391,631 85

RDN15020 Centuria Hotel Car Park 112,000 102,331 102,331 91

RDN16201 Helena River Footbridge 20,000 328 328 2

RDN16202 Sloop Rise 26,000 24,048 24,048 92

RDN16203 Colorino Avenue 1,000 1,694 1,694 169

RDN16204 Guildford Railway Station 250,000 3,577 3,577 1 250,000

RDN16205 Hardwick Road 40,000 26,947 3,165 30,111 75

RDN16206 Hyem Road 100,000 57,902 2,298 60,200 60

RDN16207 Inlet Trail 55,000 53,550 53,550 97

RDN16208 Lefroy Avenue 60,000

RDN16209 Millhouse Rd/Chateau Pl RAB 918,540 629,580 149,153 778,733 85 612,360 244,943 40

RDN16210 Montreal Road 215,000 1,507 1,507 1

RDN16211 Moore Road 95,000

RDN16212 Riverside Drive 110,000 135,275 44,313 179,589 163

RDN16213 Stirling Cr/Hazelmere Circus 50,000


2/03/2017 1:47:20 PM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN16214 Weddall Road 285,000 145,437 110,062 255,498 90

RDN16216 Benara Road, Intersection 832,380 34,080 9,453 43,532 5

RDN16217 Altone Park Car Park 25,000 21,342 21,342 85

RDN16218 Northridge Drive 15,019 184,428 199,447

RDN16219 Halden Road 1,338 1,338

RDN Roads 37,503,285 16,413,890 5,231,734 21,645,623 58 7,538,020 2,383,293 32

CAPITAL JOBS TOTAL 92,409,285 39,055,085 15,395,136 54,450,221 59 11,732,960 3,239,212 28

Current Budget

YTD Expense Current Budget

FullYearExpense

Actual Commited Total % ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 9,985,210 2,410,261 2,410,261 24

1608 Purchase of Assets Buildings

1609 Purchase of Assets Comm Bus P 150,000 150,000 150,000 100

1613 Purchase of Asset Office F & 580,170 96,917 60,399 157,316 27

1618 Purchase of Assets P & E 8,925,870 4,745,263 1,352,828 6,098,091 68

1623 Purchase of Assets Computer 942,990 409,671 253,516 663,187 70

1628 Purchase of Assets Vehicle 1,964,750 1,726,591 548,338 2,274,929 116

1648 Purchase of Assets Other Infr 815,567 815,567

CAPITAL ASSETS TOTAL 22,548,990 9,538,702 3,030,649 12,569,352 56 0 0 0

GRAND TOTAL 114,958,275 48,593,787 18,425,785 67,019,573 58 11,732,960 3,239,212 28


2/03/2017 1:47:20 PM

5.1

4.0 DInvestments

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

20,819,240

29,000,000

11,000,000

60,819,240

Non Fossil Fuel lending ADI's

20,000,000

29,000,000

56,200,000

105,200,000

Total Cash and cash equivalents 166,019,240

0

40

80

120

160

200


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2014 2015 2016 20170

40,000

80,000

120,000

160,000

July Aug Sep Oct Nov Dec Jan Feb MarchApril May June

Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash

5.0 Cash and Investments

12%

13%

17%

17%

34%

7%

Investment Portfolio Exposure

Bendigo and Adelaide Bank - BENCommonwealth Bank of Australia - CBA-BWAMembers Equity Bank - MEBNational Australia Bank - NABSuncorp Bank - SUNWestpac Group - WBC

(A-2, BBB+) MEB

(A-1, A+) SUN

(A-2, A-) BEN

(A-1+, AA-) NAB

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

(A-1+, AA-) WBC

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

Individual Institution Exposures vs. Policy Limits

Limits Funds

0%

20%

40%

60%

80%

100%

0

50

100

150

200

Historical Portfolio Exposure to Non Fossil Fuel Lending ADIs

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

Comm Bank of Australia

National Australia Bank

Westpac Group

Bendigo and Adelaide Bank

Members of Equity Bank

Suncorp Bank

Mill

ions

$

City of Swan Economic and Investment Portfolio Commentary

February 2017 Global issues: In the US, share markets continued to move higher off the back of the Trump administrations’ tax reform

and deregulation agendas. The Down Jones Index was up nearly 5% for the month, nearly +9% for the quarter and over 25% for the past 12 months.

In Europe, concerns of more defections from the EU are being driven by successes of far right campaigns particularly in France where Marine Le Pen’s Trump-like anti-immigration and nationalistic rhetoric has positioned her as a favourite to reach the second round of elections in two months.

Domestic issues: In Australia, recent economic data has been largely healthy. Business conditions, consumer confidence,

and jobs data were all market friendly. The latest retail sales numbers were lower than expected (-0.10 vs exp +0.30), but the decline was largely due to a slump in one sector, hardware sales.

Reserve Bank Governor, Philip Lowe, testified to Federal Parliament for the first time of his tenure. The message remains clear, the RBA is closely watching the nation’s increasing household debt and Sydney & Melbourne house prices which have been fuelled by the historically low interest rate environment. Another interest rate cut in this cycle is appearing increasingly remote.

Interest rates The RBA’s official cash rate remains at 1.50%. The Australian money markets are pricing the next official

movement to be a rate hike by July 2018 Term deposit rates across most maturities ended mostly unchanged for the month. Three month TDs

from Australian majors closed February in the 2.40%-2.50% area and the best indicative 12 month rate from a four major was at 2.60%.

Investment Portfolio Commentary The City’s investment portfolio posted a return in February of 2.52%pa versus the bank bill index benchmark return of 1.86%pa. 63% of the portfolio was invested in non-fossil fuel lending ADIs. For the financial year to date, the investment portfolio returned 2.63%pa, exceeding the bank bill index benchmark’s 1.83%pa by 0.79%pa. Investments with realised losses include:

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

6.1

5.0 Debtors

i) Rate Debtors ii) Sundry Debtors

i) Rate Debtors

Notes

TABLE 6.1 Rates Debtor Breakdown by Type

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

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

Total Outstanding %

General Rates 116,987 92,781 24,206 21%Sanitation Charges 22,603 20,790 1,813 8%Drainage Charges 2,650 2,571 79 3%Security Charges 1,271 1,169 102 8%Other 39 36 3 8%

143,550$ 117,347$ 26,203$ 18%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

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

As at 28 February 2017

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

0

25

50

75

100

125

150


$ M

illio

ns

2015

2016

2017

A high number of residential rates are paid in August as ratepayers take advantage of the early bird payment prize draw. In 2016/17 a high number of payments were made in both August and September as the first instalment was due on the 2nd of Septmber.

Current PositionRate Debtors in Arrears

outstanding $5.8m

Current Debtors outstanding$20.4m

Total Debtors $26.2m

6.0 Debtors

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

Mar respectively.

6.2

ii) Sundry Debtors

Notes

Table 6.3 shows a summary of the City's top 10 debtors 30 Days plus by dollar value divided by periods. Table 6.4 shows debt recovery comments for the top 10 debtors over 30 days. Graph 6.5 shows sundry debtors outstanding as a percentage based on payment period.

TABLE 6.3 Total Debtors including Top Ten 90 Days plus as at 28 February 2017

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - - - 252,086 252,086 26.43% 18.55%2 - - - 127,700 127,700 13.39% 9.40%3 - - - 70,000 70,000 7.34% 5.15%4 - - - 61,282 61,282 6.42% 4.51%5 - - - 51,707 51,707 5.42% 3.81%6 - - - 35,000 35,000 3.67% 2.58%7 - - - 24,447 24,447 2.56% 1.80%8 - - - 21,231 21,231 2.23% 1.56%9 - - - 20,000 20,000 2.10% 1.47%

10 - - - 16,560 16,560 1.74% 1.22%Other Debtors 306,958 67,073 30,904 273,848 678,783 28.71% 49.95%

Total 306,958 67,073 30,904 953,860 1,358,795 100.00% 100.00%

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

Top Ten Debtors123456789

10

GRAPH 6.5 Outstanding Debtors as a percentage

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

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

Referred to Fines Enforcement Registry for enforcement.

Appeal was heard in the Supreme Court on 24/01/17. Awaiting court decision.Referred to Fines Enforcement Registry for enforcement.


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

As % of 90 Days Plus Debtors

As % of Total DebtorsTop Ten > 90 Day

Debtors

Appeal was heard in the Supreme Court on 30/01/17. Awaiting court decision.

Progress for the recovery of Funds Comment



Current 23%

30 Days 5%

60 Days 2%

90 Days plus 70%

7.1

Income from Operating Activities

Governance 355% Favourable Variance of $370,964

Health 57% Favourable Variance of $102,501

Economic Services 11% Favourable Variance of $116,379

Other Property and Services 10% Unfavourable Variance of $211,520

Expenditure from Operating Activities

General Purpose Funding 12% Favourable Variance of $191,685

Revenue within Health has surpassed budget expectations mainly due to Annual Food Safety fees, with year to date fees collected amounting to $213k. The budget for this was revised during the mid-year budget process and a budget adjustment is pending.

The variance is largely attributed to revenue recognised for the National Economic Development Conference project, being $133k more than the original budget. A budget adjustment was processed in September 2016 to recognise the additional income.

Timing differences in the receipt of rent were the main cause of the variance, particularly within Commercialisation. Outstanding rent is due to be received in March 2017, which should reduce the variance.

Bank Charges and Legal Expenses were above budget by $31k and $94k respectively. The increase in expenditure was offset by positive variances for Recoup of Legal Costs $187k and Collection Charges $59k.

Governance 14% Favourable Variance of $1,211,747Within Governance, Computing Services Licence Fees exceeded original budget by $203k. This was offset by Employee Costs which were under budget by $899k, mainly due to positions relating to the OneCouncil Implementation project being vacant for part of the financial year and also due to leave taken within the Information Services Administration cost centre. Favourable variances were also noted for Consultants costs $274k and Projects Studies & Surveys $552k.

The favourable variance is mostly due to insurance rebates from the LGIS, which were not originally budgeted for. A budget adjustment is pending following the mid-year budget review.

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

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

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

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Education & Welfare 12% Favourable Variance of $756,875

Transport 28% Favourable Variance of $6,825,146

Economic Services 13% Favourable Variance of $506,327

Non Cash Items

Depreciation 18% Unfavourable Variance of $4,407,530

Provisions and Other Accruals 21% Favourable Variance of $223,441

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 62% Unfavourable Variance of $5,902,959

Developer Contributions Plans: Cash Contribution 23% Unfavourable Variance of $1,108,279

Purchase of Plant and Equipment 27% Favourable Variance of $8,954,866

Purchase or Construction of Infrastructure 34% Favourable Variance of $12,166,084

There were no Developer Contributions recognised in February. Due to the uncertainty of factors surrounding Developer Contributions, significant variances are not unusual.

The unfavourable variance of $4.4m from the original budget is a result of the change in depreciation charge out rates, following the review of useful lives for all asset classes, as part of the 2015/16 year end process. The unfavourable variance is offset by the $4.4m positive variance for Depreciation within Operating Activities. A budget adjustment will be processed as a result of the mid year budget review.

46% of the unfavourable result is attributed to the Roads to Recovery Grant which was $2.9m less than original budget at the end of February. A further payment from Main Roads is expected by the end of 2016/17. Additionally, grants for the following capital jobs are yet to be acquitted: Midland Youth Services Hub $1.7m, Hepburn Avenue $1m and Pickett Park Community Facility $736k.

Expenditure for Building construction works and Land Purchases were behind budget by $4.5m and $2.9m respectively, accounting for the majority of the variance within Purchase of Plant and Equipment.

$3.9m of the variance is attributed to Parks. Works for Brabham Neighbourhood Park ($1m original budget) and Dayton Neighbourhood Park ($585k original budget) have been deferred to 2017/18. In addition, Caversham Oval has only recorded $62k against its $1.3m annual budget due to works not progressing as anticipated. Within Roads, the main contributors to the variance were: Hepburn Avenue $2.2m, Lord Street $935k and Ellenbrook Bridge $914k.

The favourable variance of $223k is a timing difference mainly within the Non-Current Long Service Leave Provision. The variance will align to budget as the year progresses.

In Education and Health, operating projects accounted for the majority of the variance, being $580k below budget. Significant positive variances were displayed for the following jobs: Swan Community Grants $110k, Cultural Events $48k and HACC Program Swan Community Care Services $98k.

Within Transport, Deprecation was $4.9m below original budget, largely contributing to the variance. As part of the 2015/16 year end asset review process, the useful lives of assets were revised, thereby impacting on depreciation charge rates. Deprecation was analysed during the mid-year budget review process and the budgets were revised accordingly.

Economic Services Employee Costs were under budget by $156k mainly due to vacant positions. In addition, expenditure for operating projects was less than anticipated by $194k. Significant variances were noted for the following projects: Urban Design/Heritage Working Paper $51k, Midland Implementation Plan 2010-2017 $33k and Community Plans $39k. Several other jobs with smaller budgets have also recorded nil or minimal costs.

7.3

Other Non Operating Items

Loan Principal Repayments 18% Favourable Variance of $707,215

Other Funding Sources

Transfer from Reserves 34% Unfavourable Variance of $11,660,966

Transfer (to) from Trust Funds 100% Favourable Variance of $2,617,860

Profit on Impairment of Investments 100% Favourable Variance of $1,574,446

Proceeds from Sale of Assets 85% Unfavourable Variance of $7,408,985

Self Supporting Loans Repayments 28% Unfavourable Variance of $16,126

Proceeds from New Loans 18% Favourable Variance of $1,403,627

Movement in Deferred Rates (Non-Current) 88% Unfavourable Variance of $94,272

Opening Net Current Assets July 1 B/Fwd. 101% Favourable Variance of $8,763,981The majority of this favourable variance relates to carry forwards for capital works with the second largest contributor being a prior year adjustment to recognise interest earnings on the Emergency Services Levy. The balance relates to operating revenue being greater than budget and operating expenditure being lower than budget.

The unfavourable variance will decrease progressively as budgeted asset disposals are recognised throughout the year.

Invoicing of Self Supporting Loan repayments are raised quarterly and bi-annually. This timing difference against budget will reduce as the year progresses.

A City Loan of $3.6m was drawn down during February for the purchase of land within the Dayton Developer Contribution Plan, contributing to the favourable variance. This is a timing difference and actuals are expected to align to budget as the year progresses.

Deferred rates by pensioners have resulted in an unfavourable variance of $94k year to date. Budget and actuals are expected to align during the course of the year as this is a timing difference.

The favourable variance will reduce as budgeted City loans are drawn down during the course of the second half of the financial year.

Historically, capital expenditure increases during the second half of the financial year; it is anticipated that this variance will reduce as the year progresses.

This favourable variance will reduce when the budgeted sale of land occurs and the budget transfer is effected.

There was no further recovery in relation to investments during the month of February. The unbudgeted proceeds of $1.6m were accounted for by a budget adjustment in August 2016.

7.4

Original Budget2016/17

Revised Budget2016/17

YTD ORIGINALBUDGET

@ 28 FEBRUARY 2017


2017

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

116,312,404 116,312,404 Rates 115,866,603 115,640,913 (225,690) - -11,224,090 11,224,090 Grants and Other Contributions 8,301,295 8,366,730 65,434 - -

127,536,494 127,536,494 Total General Purpose Funding 124,167,898 124,007,643 (160,256) - -166,830 166,830 Governance 104,375 475,339 370,964 F 355%

2,333,190 2,324,650 Law, Order and Public Safety 2,068,633 2,220,916 152,283 - -271,000 271,000 Health 180,667 283,168 102,501 F 57%

4,526,420 4,526,420 Education and Welfare 3,535,300 3,471,853 (63,447) - -60,000 60,000 Housing 40,000 45,111 5,111 - -

21,973,000 21,977,700 Community Amenities 21,448,667 22,835,794 1,387,127 - -7,177,270 7,278,270 Recreation and Culture 4,800,464 4,715,149 (85,314) - -1,663,940 1,663,940 Transport 1,240,260 1,358,083 117,823 - -1,530,000 1,686,300 Economic Services 1,020,000 1,136,379 116,379 F 11%3,032,420 3,032,420 Other Property and Services 2,021,614 1,810,094 (211,520) U (10%)

170,270,564 170,524,024 Subtotal Income 160,627,877 162,359,527 1,731,650

Expenditure(2,942,622) (2,918,632) General Purpose Funding (1,661,575) (1,469,890) 191,685 F 12%

(13,281,212) (13,211,221) Governance (8,656,781) (7,445,034) 1,211,747 F 14%(6,073,486) (6,041,796) Law, Order and Public Safety (4,051,812) (4,126,384) (74,572) - -(1,827,893) (1,828,563) Health (1,218,597) (1,114,606) 103,990 - -(9,357,259) (9,340,929) Education and Welfare (6,283,828) (5,526,953) 756,875 F 12%

(99,167) (99,167) Housing (66,111) (58,881) 7,230 - -(25,107,287) (25,227,007) Community Amenities (16,701,327) (16,090,286) 611,041 - -(51,727,302) (51,902,332) Recreation and Culture (34,488,262) (31,577,356) 2,910,906 - -(36,977,516) (37,047,256) Transport (24,353,366) (17,528,220) 6,825,146 F 28%

(6,052,841) (6,297,581) Economic Services (4,035,202) (3,528,875) 506,327 F 13%(2,931,126) (2,878,936) Other Property and Services (1,908,190) (1,775,740) 132,451 - -

(156,377,712) (156,793,422) Subtotal Expenditure (103,425,051) (90,242,225) 13,182,826

13,892,852 13,730,602 Net Operating Profit / (Loss) 57,202,827 72,117,303 14,914,476

ADD NON CASH ITEMS37,518,100 37,518,100 Depreciation 25,012,067 20,604,537 (4,407,530) U (18%)

1,617,197 1,617,197 Provisions and Other Accruals 1,078,131 1,301,573 223,441 F 21%39,135,297 39,135,297 Subtotal Non Cash Items 26,090,198 21,906,109 (4,184,089)

53,028,149 52,865,899 Net Operating Surplus / (Deficit) 83,293,025 94,023,413 10,730,387

LESS CAPITAL INCOME & EXPENDITURE12,350,970 12,605,170 Capital Grants, Subsidies & Contributions 9,523,957 3,620,997 (5,902,959) U (62%)

7,203,730 7,203,730 Developers Contributions: Cash contribution 4,802,487 3,694,208 (1,108,279) U (23%)11,117,490 11,117,490 Developers Contributions: In Kind Contribution - - - - -22,496,510 22,496,510 In Kind Developer Contributions: Other - - - - -

(50,296,070) (56,413,470) Purchase of Plant and Equipment (33,530,713) (24,575,847) 8,954,866 F (27%)(29,530,870) (29,530,870) Assets Contributed by Developers - - - - -(54,122,030) (58,544,805) Purchase or Construction of Infrastructure (36,081,353) (23,915,269) 12,166,084 F (34%)

(4,083,130) (4,083,130) Land Ceded to the Crown - - - - -(84,863,400) (95,149,375) Subtotal Capital Income and Expenditure (55,285,623) (41,175,911) 14,109,713

LESS OTHER NON OPERATING ITEMS(5,869,484) (5,869,484) Loan Principal Repayments (3,912,989) (3,205,774) 707,215 F 18%

(41,901,318) (43,472,322) Transfer to Reserves (27,934,212) (28,594,766) (660,554) - -(47,770,802) (49,341,806) Subtotal Other Non Operating Items (31,847,201) (31,800,541) 46,661

OTHER FUNDING SOURCES50,934,391 59,150,426 Transfer from Reserves 33,956,261 22,295,294 (11,660,966) U (34%)(3,926,790) (3,926,790) Transfer (to) from Trust Funds (2,617,860) - 2,617,860 F (100%)

- 1,571,000 Profit on Impairment of Investments - 1,574,446 1,574,446 F 100%13,024,762 13,024,762 Proceeds from Sale of Assets 8,683,175 1,274,190 (7,408,985) U (85%)

87,481 87,481 Self Supporting Loans Repayments 58,321 42,195 (16,126) U (28%)11,432,060 13,532,060 Proceeds from New Loans 7,621,373 9,025,000 1,403,627 F 18%

(160,652) (160,652) Movement in Deferred Rates (Non current) (107,101) (201,374) (94,272) U 88%8,713,685 8,713,685 Opening Net Current Assets July 1 B/Fwd 8,713,685 17,477,666 8,763,981 F 101%

80,104,937 91,991,972 Subtotal Other Funding Sources 56,307,853 51,487,418 (4,820,435)

498,883 366,689 CLOSING NET CURRENT ASSETS YTD 52,468,053 72,534,374 20,066,321

CITY OF SWANSTATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @FEBRUARY 2017

ACTUAL @JUNE 2016

ACTUAL @FEBRUARY 2016

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 59,443,183 30,723,289 63,251,465Restricted Cash, Cash Equivalents & Investments 106,576,057 102,524,229 98,396,921Rates Debtors Current 28,543,070 6,949,724 25,109,729Trade and Other Receivables 2,996,647 2,723,870 3,312,627Prepayments 341,544 776,014 279,484Inventory 337,769 169,838 30,514Total Current Assets 198,238,271 143,866,964 190,380,739

Less Current LiabilitiesIncome in Advance (1,361,747) - (1,024,303)Accounts Payable (11,948,324) (18,472,821) (10,611,565)Provisions - Employee Entitlements (12,830,985) (12,847,797) (11,458,179)Loan Repayments (2,469,594) (5,412,027) (2,114,726)Total Current Liabilities (28,610,650) (36,732,645) (25,208,775)

Net Current Assets 169,627,620 107,134,319 165,171,965

Add Back Restricted LiabilitiesLSL Reserve 7,058,504 5,958,432 5,569,229Loan Repayments 2,469,594 5,412,027 2,114,726Self Supporting Loan Contributions (45,286) (87,481) (48,403)

Adjusted Net Assets 179,110,431 118,417,297 172,807,516

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (103,498,051) (97,198,580) (93,224,307) Bond monies (3,078,006) (3,741,051) (5,172,614)

Closing Funds 72,534,374 17,477,666 74,410,595

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

CITY OF SWAN NET CURRENT FUNDING POSITION

AS AT 28 FEBRUARY 2017

10

30

50

70

90

110

130

150

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

Mill

ion

$

Liquidity Over Three Years

2014/152015/162016/17

8.1

1. STATEMENT OF CASH FLOW

2. RATE SETTING STATEMENT

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

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

8.0 Other Statutory Reports8.0 Other Statutory Reports

8.2

ORIGINALBUDGET2016/17

REVISEDBUDGET2016/17 CASH FLOWS FROM OPERATING ACTIVITIES

YTD ACTUAL@ 28 FEBRUARY 2017

ACTUAL @30 JUNE 2016

Receipts116,058,352 116,312,404 Rates Revenue 95,207,941 111,701,344

1,172,000 1,172,000 Service Charges 1,218,714 1,189,82635,662,650 35,662,650 Fees & Charges 31,977,957 36,636,208

5,751,290 5,751,290 Interest Earnings 3,632,732 5,096,97110,321,060 10,430,520 Operating Grants, Subsidies & Contributions 8,115,789 7,942,983

1,134,698 1,134,698 All other revenue 1,162,126 1,952,7174,379,020 4,379,020 GST Inflow 3,886,226 6,084,086

174,479,070 174,842,582 Total Receipts 145,201,485 170,604,135Payments

(32,398,685) (33,470,173) Materials & Contracts (22,766,790) (24,457,974)(6,575,148) (6,570,760) Utility Charges (3,717,001) (5,914,655)

(74,563,550) (74,807,190) Employee Costs (46,496,433) (66,658,084)(668,280) (668,280) Insurance Payments (755,164) (674,790)

(2,141,200) (2,141,200) Interest Payments (1,003,731) (2,084,173)(1,616,720) (1,617,720) Other Payments (1,535,560) (1,666,615)(4,661,904) (4,661,904) GST Outflow (3,689,229) (5,907,824)

(122,625,487) (123,937,227) Total Payments (79,963,908) (107,364,115)51,853,582 50,905,354 Net cash provided / (used) by operating activities 65,237,577 63,240,018

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(50,296,070) (56,413,470) Purchase / Construction of capital assets (24,575,847) (27,494,941)(54,122,030) (58,544,805) Purchase / Development of infrastructure (23,915,269) (57,305,279)

(3,926,790) (3,926,790) Transfer (to) from Trust Funds - -- - Proceeds from Disposal of Investments 1,574,446 2,097,682

(108,344,890) (118,885,065) (46,916,670) (82,702,538)Receipts

12,350,970 12,605,170 Capital Grants, Subsidies & Contributions 3,620,997 18,123,6747,203,730 7,203,730 Developers Contributions 3,694,208 11,174,411

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 1,274,190 2,473,56232,579,462 32,833,662 8,589,395 31,771,647

(75,765,428) (86,051,403) Net cash provided / (used) by investing activities (38,327,275) (50,930,891)CASH FLOWS FROM FINANCING ACTIVITIES

11,432,060 13,532,060 Proceeds from Loan Borrowings 9,025,000 6,848,620(5,869,484) (5,869,484) Repayment of Borrowings (3,205,774) (5,430,069)

87,481 87,481 Contributions - Self supporting loans 42,195 95,286- - ESL Movements - (276,932)

5,650,057 7,750,057 Net cash provided / (used) by financing activities 5,861,420 1,236,905(18,261,789) (27,395,992) Net increase / (decrease) in cash held 32,771,724 13,546,032118,753,596 118,753,596 Cash at the beginning of the year 133,247,518 119,701,485100,491,807 91,357,604 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 166,019,240 133,247,518

CITY OF SWAN STATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2016/17

REVISEDBUDGET2016/17 OPERATING REVENUE

YTD ORIGINALBUDGET

@ 28 FEBRUARY 2017


20171,172,000 1,172,000 Service Charges 1,172,000 1,218,714

35,662,650 35,662,650 Fees & Charges 30,722,682 31,977,9572,588,578 2,588,578 Specified Area Rates 2,588,578 2,634,324

10,321,060 10,430,520 Operating Grants, Subsidies & Contributions 7,994,499 8,115,7895,751,290 5,751,290 Interest Earnings 4,184,162 4,244,0291,051,160 1,195,160 Other Revenue 687,931 1,162,126

56,546,738 56,800,198 Subtotal - operating revenue 47,349,852 49,352,939OPERATING EXPENSE

(74,643,550) (74,807,190) Employee Costs (49,252,134) (46,339,598)(33,219,103) (33,470,173) Materials & Contracts (21,984,556) (16,949,681)

(6,570,760) (6,570,760) Utility Charges (4,108,526) (3,717,001)(37,518,100) (37,518,100) Depreciation on Non-Current Assets (25,012,067) (20,604,537)

(2,141,200) (2,141,200) Interest Expenses (1,161,195) (1,003,731)(668,280) (668,280) Insurance Expenses (882,630) (755,164)

(1,616,720) (1,617,720) Other Expenses (1,023,943) (872,515)(156,377,713) (156,793,423) Subtotal - operating expense (103,425,051) (90,242,227)

(99,830,975) (99,993,225) Net cash from / (Non) operating activities (56,075,198) (40,889,288)Non Cash Items

(160,652) (160,652) Movement in Deferred Rates (Non Current) (107,101) (201,374)1,617,197 1,617,197 Movement in Employee Provisions and Adjustments 1,078,131 1,301,573

37,518,100 37,518,100 Write Back Depreciation 25,012,067 20,604,53738,974,645 38,974,645 Total 25,983,097 21,704,736

Capital Works(54,122,030) (58,544,805) Purchase / Construction of infrastructure assets (36,081,353) (23,915,269)(29,530,870) (29,530,870) Developer contributions - Infrastructure - -(50,296,070) (56,413,470) Purchase / Construction of other capital assets (33,530,713) (24,575,847)

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 8,683,175 1,274,19012,350,970 12,605,170 Capital Grants, subsidies & Contributions 9,523,957 3,620,997

7,203,730 7,203,730 Developers contributions: Cash 4,802,487 3,694,20811,117,490 11,117,490 Developers contributions: In kind - -22,496,510 22,496,510 In Kind Developer Contributions: Other - -(4,083,130) (4,083,130) Land Ceded to the Crown - -

(71,838,638) (82,124,613) Net Capital Outlays (46,602,449) (39,901,721)Debt Management

11,432,060 13,532,060 Proceeds from New Loans 7,621,373 9,025,000(5,869,484) (5,869,484) Repayment of Loans (3,912,989) (3,205,774)

87,481 87,481 Contributions to Debt 58,321 42,1955,650,057 7,750,057 Total 3,766,705 5,861,420

Other Funding Transactions- 1,571,000 Profit/Recovery Impairment of Investments - 1,574,446

(3,926,790) (3,926,790) Transfer (to) from Trust Funds (2,617,860) -50,934,391 59,150,426 Transfers from reserves 33,956,261 22,295,294

(41,901,318) (43,472,322) Transfers to reserves (27,934,212) (28,594,766)5,106,283 13,322,314 Net Movement in Reserves 3,404,189 (4,725,026)

8,713,685 8,713,685 Opening Funds 1 July - Net Current Assets 8,713,685 17,477,666(498,883) (366,689) Less Closing Funds 30 June - Net Current Assets (52,468,053) (72,534,374)8,214,802 8,346,996 Net Current Assets (Less Restricted) (43,754,368) (55,056,708)

113,723,826 113,723,826 SHORTFALL TO BE MADE UP FROM RATES 113,278,025 113,006,589


CITY OF SWANRATE SETTING STATEMENT

Documents

Financial Management Report - February 2017 · The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and