financial management report - december 2016

Ordinary Meeting of Council 15 February 2017

5.1 FINANCIAL MANAGEMENT REPORT - DECEMBER 2016

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

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Corporate)

KEY ISSUES

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

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

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

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

It is recommended that Council resolve to note the monthly financial management reports for the period ended 31 December 2016.

BACKGROUND

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

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

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

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


The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and position of the City. The materiality threshold adopted by Council, together with the Annual Budget for 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 December 2016 is included as an attachment to this report.

As the information contained in the Statement of Financial Activity is repeated in the Statement of Comprehensive Income and 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 $155.1m; this is greater than budget by $862k.

Expenditure from ordinary activities for the year to date is $68m: this is less than budget by $10.4m.

The net result is $95.7m surplus compared to $92.2m budgeted year to date.

2. Statement of Financial Position

Cash and Cash Equivalents have decreased by $12.4m from November to December, being the main cause of the reduction in Current Assets of $17.9m. Current Liabilities have decreased by $5.7m, mainly within Trade and Other Payables. The Purchase of a Land Asset has contributed to the increase in Non Current assets of $6m from November to December.

3. Statement of Cash Flow

The report shows Cash and Cash Equivalents at the end of December 2016 with a balance of $167.3m. Cash and Cash Equivalents at the end of December 2015 reflected a balance of $165.2m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending December 2016.


STRATEGIC IMPLICATIONS

Consistent with the City's Strategic Community Plan 2017-2022 Key Result Area - Governance

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

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

STATUTORY IMPLICATIONS

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

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolve to:

1) Note the financial statements and report for the month ended 31 December 2016 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

31st December 2016

Contents

1.0 Financial Summary 1.0

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

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

4.0 Capital Payment 4.1 Capital Works Schedules 4.2 - 4.7

5.0 Cash and Investments 5.1 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. (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 31st December 2016

2.0 Statement of Comprehensive Income (Performance)

Year to 31st December 2016 Annual AnnualBudget Bgt Var

$000's %

Revenue 155,133 154,271 1% 170,405 91%

Expenses (68,030) (78,415) -15% (156,693) 43%

Profit/Loss 87,103 75,856 13% 13,712 635%

Non-operating 8,643 16,317 -89% 61,473 14%

Net Result 95,746 92,173 4% 75,185 127%

3.0 Statement of Financial Position2016 2016 2016June November December$000's $000's $000's

Current

Assets 143,867 235,709 217,798

Liabilities 36,733 36,406 30,656

Non Current

Assets 1,377,045 1,389,390 1,395,347

Liabilities 41,718 41,651 44,282

Net Assets 1,442,461 1,547,042 1,538,207

4.0 Capital PaymentsYear to 31st December 2016 Annual Annual

Dec Actual/Comm Budget Var Budget Bgt Var

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

Buildings 18,943 15,437 123% 30,874 61%Drainage 2,155 3,292 65% 6,583 33%

Footpaths 869 538 162% 1,075 81%Parks 3,115 6,670 47% 13,339 23%

Roads 18,004 18,642 97% 37,283 48%P&E, Other 12,278 11,739 105% 23,478 52%

Total 55,364 56,316 98% 112,632 49%

5.0 Cash and InvestmentsVolume Held

November December Ave Interest$000's $000's %

Cash 15,555 11,128 1.2%

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

Floating Rate - 0 0.0%Term Deposits 164,200 156,200 2.7%

Total 179,755 167,328 2.0%

6.0 Debtors November December Change

$000's $000's %Trade Debtors

Current 364 341 -6%> 30 Days 15 120 700%> 60 Days 288 6 -98%> 90 Days 792 971 23%

Total Trade 1,459 1,438 -1%Rates Debtors

Rates Debtors 46,723 42,041 -10%Other Debtors 6,896 6,151 -11%

Total Debtors 55,078 49,630 -10%

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

%

The net result was 4% above budget expectations.

Operating expenses reflected a positive variance of $10.4m. EmployeeCosts were under budget by $2.3m due to staff annual leave taken overthe Christmas period and also due to vacant positions, particularly for theCore System Replacement project. Materials and Contracts, as a result oftiming differences were under budget by $3.9m. Depreciation was alsobelow budget by $3.3m due to depreciation charge out rates beingimpacted by the change in the remaining useful lives of assets, followingthe 15/16 year end asset review process.

Non-operating income reflected a below budget result of $7.7m mostlydue to capital grants not being received as anticipated. The Roads toRecovery capital grant was less than budget by $2.9m and various capitalgrants for Buildings and Urban Arterial Roads were under budget by a totalof $2.7m. Profit on Disposal of Assets also contributed $2.6m to thevariance, as a result of timing differences.

The December 2016 Cash and Cash Equivalentswas $2.2m higher than the December 2015 closingbalance.

Term deposit interest rates remained largelyunchanged for the month with the major Australianbanks offering rates between 2.50% and 2.75%.Australian money markets are predicting the nextofficial rate increase to occur in the first quarter of2018.

The City's investment portfolio return on investmentwas 2.64% vs the Bank Bill index of 1.72%, exceedingthe Bank by 0.92%.

Cash and Cash Equivalents have decreased by$12.4m from November to December, being the maincause of the reduction in Current Assets of $17.9m.

Current Liabilities have decreased by $5.7m, mainlywithin Trade and Other Payables.

A decrease in Trade and Other Payables hascontributed to the Current Ratio increasing slightly to4.93 in December.

The Purchase of a Land Asset has contributed tothe increase in Non Current assets of $5.9m fromNovember to December.

1.35

4.52 4.93

1.00 1.00 1.00

-

1.00

2.00

3.00

4.00

5.00

6.00

June 16 Nov-16 Dec-16

C.Assets C.Liabilities

Total spend for Capital works was $55.4m at the end of the period. Thisconsisted of $34.1m actual costs and $21.3m committed costs.

Expenditure for Buildings was above budget by $3.5m with thefollowing projects accounting for a large proportion of the total spend:Midland Youth Services Hub $2.4m, Pickett Park Community Facility$4.8m and Caversham Community Centre $3m.

Within Roads, total spend was $18m against ytd budget of $18.6m. Ofthis $5.8m is attributed to Gnangara Road and $5.4m to HazelmereIndustrial Area Infrastructure Road.

Parks have spent $3.1m compared to ytd budget of $6.6m. Thefollowing Parks with significant budgets have recorded minimal costs:Paradise Quays $1.6m budget, Caversham Oval $1.3m budget andBrabham Neighbourhood Park $1m budget.

The City spent $2m in December towards the acquisition of a LandAsset.

0

300

600

900

Current > 30 Days > 60 Days > 90 Days

$000

's

Trade Debtors

November December

AA+ to AA- 70%

A+ to A-

30%

Less invoices were raised during the monthcompared to November, resulting in a slight decreasein Current Debtors of 6%. Two disputed prosecutiondebts remain unpaid mainly contributing to theincrease in the 30 and 60 day debtors, of $105k and$179k respectively.

Rates debtors excluding Emergency ServicesLevy, declined by $4.7m or 10%. The decrease wasnot as significant as the previous month as noinstalments or interims were due in December. Thethird instalment and the second notices are due inJanuary.

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@ 31 DECEMBER

2016

YTD ACTUAL@ 31 DECEMBER

2016$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities116,312,404 116,312,404 Rates Revenue 115,417,403 115,067,046 (350,357) - -

1,172,000 1,172,000 Service Charges 1,172,000 1,215,564 43,564 - -35,662,650 35,662,650 Fees & Charges 28,156,724 29,295,198 1,138,474 - -10,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,607,492 5,364,933 (242,559) - -

5,751,290 5,751,290 Interest Earnings 3,257,945 3,196,141 (61,804) - -1,051,160 1,195,160 Other Revenue 659,554 994,010 334,456 F 51%

170,270,564 170,404,564 Sub-Total Ordinary Revenue 154,271,119 155,132,893 861,774

Expenses from Ordinary Activities(74,643,550) (74,812,790) Employee Costs (37,135,665) (34,842,617) 2,293,048 - -(33,219,103) (33,363,673) Materials & Contracts (16,802,339) (12,914,978) 3,887,360 F 23%

(6,570,760) (6,570,760) Utility Charges (3,071,770) (2,372,695) 699,075 F 23%(37,518,100) (37,518,100) Depreciation on Non-Current Assets (18,759,050) (15,461,722) 3,297,329 F 18%

(2,141,200) (2,141,200) Interest Expenses (791,239) (790,196) 1,043 - -(668,280) (668,280) Insurance Expenses (977,025) (862,881) 114,144 F 12%

(1,616,720) (1,617,720) Other Expenses (877,860) (784,939) 92,921 F 11%

(156,377,713) (156,692,523) Sub-Total Ordinary Expenses (78,414,948) (68,030,028) 10,384,920

13,892,851 13,712,041 Ordinary Activities 75,856,171 87,102,864 11,246,693

Add Non-Ordinary Activities12,350,970 12,600,670 Non-Operating Grants, Subsidies & Contributions 8,360,150 3,319,778 (5,040,372) U (60%)22,496,510 22,496,510 Non-Operating Gifted Assets from Developers: Other - - - - -

7,203,730 7,203,730 Developer Contribution Plans: Cash 3,601,865 3,586,476 (15,389) - -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 2,783,410 162,248 (2,621,162) U (94%)- 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 75,185,131 Net Result 92,172,597 95,745,813 3,573,216- - Other Comprehensive Income - - - - -

73,545,241 75,185,131 Total Comprehensive Income 92,172,597 95,745,813 3,573,216

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

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

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE CITY OF SWAN

FOR THE PERIOD 1 JULY 2016 to 31 DECEMBER 2016

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

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

58.16%

31.53

2.20

2.3

Original Budget

2016/17

Revised Budget

2016/17

YTD CURRENTREVISED BUDGET@ 31 DECEMBER

2016


2016 $ VarianceVAR

NOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities127,536,494 127,536,494 General Purpose Funding 121,439,648 121,069,078 (370,570) - -

166,830 166,830 Governance 81,888 437,636 355,748 F 434%2,333,190 2,307,190 Law Order & Public Safety 1,829,242 1,925,082 95,840 - -

271,000 271,000 Health 135,500 265,703 130,203 F 96%4,526,420 4,526,420 Education & Welfare 2,554,625 2,150,935 (403,690) U (16%)

60,000 60,000 Housing 30,000 32,674 2,674 - -21,973,000 21,976,700 Community Amenities 21,190,200 22,415,598 1,225,398 - -

7,177,270 7,177,270 Recreation & Culture 3,537,085 3,436,265 (100,820) - -1,663,940 1,663,940 Transport 1,035,420 1,149,584 114,164 F 11%1,530,000 1,686,300 Economic Services 921,300 929,442 8,142 - -3,032,420 3,032,420 Other Property & Services 1,516,211 1,320,897 (195,314) U (13%)

170,270,564 170,404,564 Sub-Total Revenue 154,271,119 155,132,893 861,774

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,942,622) (2,941,362) General Purpose Funding (1,294,195) (1,143,758) 150,437 F 12%(12,721,402) (12,634,501) Governance (6,404,220) (5,386,601) 1,017,620 F 16%

(6,073,486) (6,028,616) Law Order & Public Safety (2,994,940) (2,991,736) 3,204 - -(1,827,893) (1,828,563) Health (914,618) (843,040) 71,579 - -(9,357,259) (9,342,529) Education & Welfare (4,744,883) (4,151,821) 593,061 F 12%

(99,167) (99,167) Housing (49,584) (42,042) 7,542 - -(25,107,287) (25,228,957) Community Amenities (12,627,517) (11,927,268) 700,248 - -(51,024,352) (51,094,352) Recreation & Culture (25,854,712) (23,696,056) 2,158,656 - -(36,547,416) (36,619,256) Transport (18,272,892) (12,823,674) 5,449,219 F 30%

(6,052,841) (6,312,281) Economic Services (3,285,822) (2,597,195) 688,627 F 21%(2,482,786) (2,421,736) Other Property & Services (1,180,326) (1,636,642) (456,316) U (39%)

(154,236,513) (154,551,323) Sub-Total Non-Borrowing Expense (77,623,709) (67,239,833) 10,383,876

Borrowing Costs Expense(559,810) (559,810) Governance (192,596) (184,854) 7,742 - -(702,950) (702,950) Recreation & Culture (281,459) (283,745) (2,286) - -(430,100) (430,100) Transport (170,860) (161,739) 9,121 - -(448,340) (448,340) Other Property & Services (146,324) (159,858) (13,534) - -

(2,141,200) (2,141,200) Sub-Total Borrowing Costs (791,239) (790,196) 1,043

13,892,851 13,712,041 Net Operating Result 75,856,171 87,102,864 11,246,693

Non-Operating Grants, Subsidies & Contributions18,321,220 18,321,220 Governance 3,601,865 3,586,476 (15,389) - -

200,000 200,000 Law Order & Public Safety 100,000 15,000 (85,000) U (85%)332,210 322,210 Education & Welfare 156,105 60,762 (95,343) U (61%)

13,606,060 13,760,440 Recreation & Culture 1,957,410 804,233 (1,153,177) U (59%)20,709,210 20,814,530 Transport 6,146,635 2,439,783 (3,706,852) U (60%)53,168,700 53,418,400 11,962,015 6,906,254 (5,055,761)

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 2,529,735 (110) (2,529,845) U (100%)

507,350 507,350 Transport 253,675 162,358 (91,317) U (36%)5,566,820 5,566,820 2,783,410 162,248 (2,621,163)

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 75,185,131 Net Result 92,172,597 95,745,813 3,573,216Other Comprehensive Income

73,545,241 75,185,131 Total Comprehensive Income 92,172,597 95,745,813 3,573,216


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 4.93

QUICK RATIO 1.52 1.67 1.34 4.91

UNTIED CASH TO TOTAL CREDITORS 3.83 5.50 2.72 20.30

1. Statement of Financial Position

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

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

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

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

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

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

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @31 DECEMBER 2016

ACTUAL @30 JUNE 2016

Current AssetsCash and cash equivalents 167,327,844 133,247,518Trade and other receivables 49,629,591 9,673,594Other Assets 542,897 776,014Inventories 297,599 169,839

Total: Current Assets 217,797,931 143,866,966

Non Current AssetsTrade and other receivables 2,583,107 2,368,749Property, plant and equipment 1,332,398,538 1,314,310,707Other Financial Assets 60,365,712 60,365,712

Total: Non Current Assets 1,395,347,356 1,377,045,169

Total Assets 1,613,145,288 1,520,912,135

Current LiabilitiesShort term borrowings 3,065,026 5,412,027Trade and other payables 13,302,967 18,472,821Income in advance 890,514 -Provisions 13,397,889 12,847,797

Total: Current Liabilities 30,656,395 36,732,645

Non Current LiabilitiesLong term borrowings 39,817,152 36,673,830Trade and other payables 2,990,852 3,741,051Provisions 1,473,870 1,303,402

Total: Non Current Liabilities 44,281,874 41,718,283

Total Liabilities 74,938,269 78,450,928

NET ASSETS 1,538,207,020 1,442,461,207

Equity AccountsAccumulated Surplus 976,974,177 881,986,083Asset Revaluation Reserves 463,276,542 463,276,542Cash Backed Reserves 97,956,302 97,198,580

TOTAL EQUITY 1,538,207,020 1,442,461,207

CITY OF SWAN STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

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 1,333,820,395

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

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

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

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

Balance as at 30 JUNE 2016 881,986,083 463,276,542 97,198,580 1,442,461,207

Net Result 95,745,813 - - 95,745,813

Total Other Comprehensive Income - - - -

Transfer from/(to) Reserves (757,722) - 757,722 -

Balance as at 31 DECEMBER 2016 976,974,177 463,276,542 97,956,302 1,538,207,020

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS31-Dec-16 30-Jun-16

Cash / Investment Backed Reserves

Aged Services Asset Replacement 153,268 267,804

City Asset Replacement 8,581,367 6,269,851

Ellenbrook Community Facilities 276,818 559,574

Vale Community 1,412,795 1,442,580

General Insurance 500,000 500,000

Gravel Pit Rehabilitation 369,643 313,637

Hazelmere/Guildford Drainage 1,536,197 1,368,745

Midland District Drainage Development 5,210,295 5,538,128

Plant & Equipment Reserve 442,077 1,907,521

Waste Management 6,411,491 7,275,188

Employee Entitlements - LSL 6,932,643 5,958,432

Hazelmere Industrial Area Infrastructure - Stage 2 5,961,584 6,901,504

Ellenbrook Bridge 2,053,643 2,166,748

Strategic Development 3,118,398 1,733,866

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 15,909,824 14,841,917

- Caversham 10,217,069 10,214,013

- Dayton (West Swan East) 24,013,744 23,766,614

Other Restricted Assets

- Drainage 66,084 66,084

- Footpath 242,258 227,958

- Malaga Parking 179,083 162,500

- Midland Parking 35,000 35,000

- Ellenbrook Parking 842,517 842,517

- Roadwork 2,718,923 2,753,528 - Unspent Specific Grants - 1,388,290

- Public Art 771,580 696,580

Sub total Cash / Investment Backed Reserves 97,956,302 97,198,580

Add: other restricted cash / investment assets (i.e Bonds) 2,990,852 5,325,651Total of restricted cash / investment assets 100,947,153 102,524,229Add: Unrestricted cash / investment assets (i.e. MUNI funds) 66,380,691 30,723,289TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 167,327,844 133,247,518

Consisting of: Cash and Cash Equivalents 167,327,844 133,247,518

167,327,844 133,247,518


CITY OF SWAN STATEMENT OF CHANGES IN EQUITY

4.1

Comments

Ytd expenditure for the Bullsbrook Waste Transfer S ation was $1.2m with $194k being recorded in December. Totalspend is marginally above budget by 5%; a budget adjustment is pending. Earthworks and drainage works are mostly completed while service relocations and electrical works are progressing.

Expenditure for Gnangara Road was 11% or $600k above annual budget of $5.2m at the end of December. A budgetadjustment is pending. The new dual carriageway is fully operational both ways as from early December 2016. Signage and line marking by Main Roads has commenced and is expected to be completed in January 2017. A Road Safety Audit is due to commence soon.

Hazelmere Industrial Area Infrastructure Road ended the month with ytd expenditure of $5.4m against annual budget of$9.5m Of this, $533k was spent in December. Construction is continuing between Stirling Crescent and Lakes Road with expected completion of this section in June 2017. Western Power service relocations have been delayed due to the discovery and remediation of hazardous materials. Delay in the purchase of land by Main Roads Western Australia is likely to lead to delays in the new road construction and the progression of the final intersections upgrades to connect through to Great Eastern Highway Bypass.

Pickett Park Community Facility recorded $2.9m in December recognising 67% of its $7m annual budget. Construction works are advancing with the lock-up stage expected at the end of January 2017. The project is still on track for practical completion to be achieved in April 2017.

Caversham Community Centre recorded $474k during the period resulting in ytd spend of $3m against $3.9m annualbudget. Internal fit-out and ceiling works have commenced and are progressing.

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

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

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 722,000 29,660 129,632 159,291 22

BCW05104 Altone Park Library 69,000

BCW05106 Community Facilities 50,000

BCW05110 Midland Town Hall Build Imp 590,000 1,472 15,060 16,532 3

BCW05114 Minor Capital Building Projec 60,000 34,279 2,200 36,479 61

BCW05129 Guildford Visitor Centre 140,000

BCW05131 Midland Lotteries 120,000

BCW05137 Altone Leisure Centre 577,000 37,633 32,415 70,048 12

BCW06110 Ballajura Aquatic Centre 203,000 24,133 24,387 48,520 24

BCW06121 Toilet Renewals 18,000 7,566 1,671 9,237 51

BCW07103 West Swan Home Supp 40,000 28,900 28,900 72

BCW07108 Swan Park Recreation Centre 804,600 15,191 20,939 36,130 4

BCW07116 Airconditioner Renewal Progra 54,800

BCW07121 Percy Cullen Pavilion 220,000 200,000

BCW07122 South Ballajura Com Centre 35,000

BCW07124 Midland Sports Complex 109,120 10,735 8,633 19,368 18

BCW08109 Bullsbrook Waste Transfer Sta 1,060,640 771,985 343,225 1,115,210 105 200,000

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 2,907,260 979,132 1,383,089 2,362,222 81 1,725,000

BCW09102 Bus Shelters 160,000 88,067 24,643 112,710 70 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

BCW09107 Electrical Plant & Equipment 25,000

BCW09108 Heritage Precincts 185,060 41,430 28,177 69,606 38

BCW10101 Asbestos Management Program 175,000 1,710 59,782 61,492 35

BCW10102 Integrated Systems Program 401,000 88,282 10,000 98,282 25

BCW11104 Ellenbrook DOS Sthn 394,000 34,037 7,621 41,658 11

BCW11106 Ellenbrook Leisure Centre 566,000 77,589 23,450 101,039 18

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 2,385,194 2,319,722 4,704,916 67 736,250

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

BCW12104 15 Keane Street Upgrade 298,000 243,231 52,876 296,107 99

BCW13101 Ballajura Place Office 298,000

BCW13102 Caversham Community Centre 3,916,000 1,143,604 1,837,561 2,981,166 76

BCW13104 Midland Oval 871,420

BCW13107 Old Mechanical Workshop 30,000

BCW14101 Altone Place Office 124,000 94,325 94,325 76

BCW14103 Brabham Community Centre 555,730 23,106 35,004 58,111 10

BCW14104 Dayton Community Centre 3,132,700 467,681 2,247,325 2,715,007 87

BCW14106 North Swan Park Pavilion 1,054,000 895,679 27,038 922,717 88

BCW14107 Rosher Oval Hall & Pavilion 1,248,000 1,128,094 82,632 1,210,726 97

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2016

5/01/2017 10:52:15 AM


JobNumber

JobName



YTDRevenue

% ofBudget

BCW14109 Operations Centre 478,000 22,408 343,375 365,783 77

BCW15001 Hazelmere Hall 40,000 11,719 14,970 26,689 67

BCW15002 Koongamia Pavilion 139,500

BCW15003 Lowery Park Pavilion 227,000 230 230

BCW15004 Gidgegannup Fire Station 309,380 17,906 1,650 19,556 6 309,380

BCW15005 District Park Active- Buildin 285,000 82,538 190,264 272,802 96

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

BCW16101 Stafford Court - Training Roo 180,000 52,319 93,632 145,951 81

BCW16102 Guildford Gaol 371,940 130,339 158,442 288,782 78

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 33,030 11,906 44,937 45

BCW16106 PA Midland Youth Hub 6,000 6,000

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

BCW Building Capital Works 30,873,570 9,229,983 9,713,502 18,943,486 61 3,208,130 0 0

DRN04213 Midland Drainage 490,000 53,498 158,242 211,741 43

DRN05203 Hooley/Mathoura Drainage 677,000

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

DRN07209 Morrison Road/Poynton Ave 286,000

DRN08203 Hazelmere/Guildford Drainage 1,020,000 150,193 486,902 637,095 62

DRN08205 Morrison Road 426,400

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

DRN12205 Hamersley Street 148,750 1,909 1,909 1

DRN13203 Ewart Street Midland 93,500 226,643 98,332 324,975 348

DRN13209 Other Drainage Upgrades 220,000 4,494 1,650 6,144 3

DRN14203 Elvire Street 325,000 65,738 34,825 100,563 31

DRN15001 Margaret Street 272,040 264,415 13,463 277,878 102

DRN15002 Gartrell Street 193,050 182,688 8,350 191,039 99

DRN15006 Ford Street 243,100 7,315 (1) 7,314 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 1,260 1,260 1

DRN16202 Midland Foreshore Restoratio 310,000 4,334 4,334 1

DRN16203 Byers Road 443,300 420 420

DRN16204 Devon Road 260,000 156,112 821 156,933 60

DRN16206 Holmesdale Road 169,000 19,457 360 19,817 12

DRN16207 Plymouth Street 78,000 116,326 1,632 117,958 151

DRN16208 William Street 128,700

DRN Drainage 6,582,610 1,334,157 820,990 2,155,148 33 0 0 0

FTP06502 Footpaths New 115,000 4,000 4,000 3

FTP06505 Footpath Replacements 250,000 52,367 186,329 238,696 95


5/01/2017 10:52:15 AM


JobNumber

JobName



YTDRevenue

% ofBudget

FTP09501 Swan Cycle Planning Project 680,000 503,540 122,298 625,838 92 230,000

FTP10101 Universal Access - Footpath 30,000

FTP Footpaths 1,075,000 555,907 312,627 868,534 81 230,000 0 0

GRP04100 Gravel Pit 232 232 50,252

GRP Gravel Pit 0 232 0 232 0 50,252

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 265,970 670 59,000 59,670 22

PEQ13102 COS Website Maintenance 73,870

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 7,139 7,139 18

PEQ15003 CSR - Technology One 799,000 648,665 832,113 1,480,778 185

PEQ15004 Movie Trailer 326 3,346 3,672

PEQ16101 DCP Software 100,000

PEQ16102 Leisure System Replacement 396,000

PEQ16103 Midland Town Hall Sound Syste 100,000

PEQ16104 Radio Frequency ID Equipment 129,500

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

PEQ16106 Electric Vehicle Charge Stati 30,000

PEQ16107 Digital Asset Management 30,340

PEQ Plant & Equipment 3,041,830 765,670 1,009,974 1,775,644 58 200,000 15,000 8

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

PRK04326 Minor Park Furniture 20,000 479 479 2

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

PRK05304 Parks & Streetscapes Minor 200,000 51,128 12,828 63,956 32

PRK05307 Swan Regional Riverside Park 241,858

PRK05309 Tourism Signage 52,000 8,325 5,388 13,713 26

PRK05311 Emu Lake Restoration 344,000 169,033 19,757 188,790 55

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 11,102 11,102 32

PRK06318 Playgrounds - Aveley 692,300

PRK07309 Kings Meadow 100,000 4,823 74,343 79,166 79

PRK08302 Bellevue Landscape Upgrade 289,000 7,200 7,200 2

PRK08307 Bushland Fencing 205,500 5,876 5,876 3

PRK08318 Public Art 150,000 1,426 4,725 6,151 4

PRK09302 Chequers Club Bore/Irrigation 850,000 3,984 187,624 191,608 23

PRK09305 City Gateways Project 300,000 3,723 3,723 1

PRK10102 Playspace Replacemet Pgm 840,000 24,482 234,673 259,155 31

PRK11101 Regional Open Space - Whitema 128,000 1,035 1,035 1


5/01/2017 10:52:15 AM


JobNumber

JobName



YTDRevenue

% ofBudget

PRK11102 Reticulation/Hydrozoning 513,000 88,013 89,955 177,968 35

PRK11106 Ellenbrook DOS South 500,000 407,135 9,445 416,580 83 375,000 375,000 100

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

PRK12308 Lanius Park Drain 100,000

PRK13301 Boat Ramp, Fishmarket Rsv Gfr 400,740 268,515 4,185 272,700 68 85,500 90,000 105

PRK13309 Sports Oval Lighting 225,000 44,991 18,369 63,360 28

PRK13311 John Stone Park 30,000 615 615 2

PRK14301 Paradise Quays 1,635,560 14,256 14,256 1

PRK14304 Bennett Springs Park 500,000 56,327 2,339 58,667 12 91,810

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

PRK14307 District Park Active 502,470 105,952 50,735 156,687 31

PRK14308 Foreshore Restoration 441,000 34,884 46,404 81,289 18 22,375

PRK14310 Midland Oval Master Plan 499,627 56,116 555,742

PRK14311 Parks Electrical Infrastructu 233,500 48,004 50,607 98,611 42

PRK14313 Gidgegannup Showgrounds 47,000 2,890 2,890 6

PRK14315 Annies Landing Playgrounds 46,000

PRK15000 Art Activation Street Banners 50,000 173 173

PRK15001 Coolamon Netball Courts 150,000 38,197 40,419 78,616 52

PRK15006 Dayton Local Park - Passive 100,000 1,142 1,142 1

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

PRK16301 Altone Parks BBQ & Water 40,000

PRK16302 Dayton Neighbourhood Park 584,950

PRK16303 Aveley Outdoor Fitness Equip. 172,500

PRK16304 Brigadoon RDA Arena Improvemt 100,000 513 73,002 73,515 74

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 1,084 1,084 1

PRK16309 PA Ellenbrook DOS South 12,000 12,000

PRK16310 PA Waterhall Park Playspace 8,000 8,000

PRK Parks 13,338,770 2,064,163 1,051,101 3,115,265 23 552,310 729,233 132

RDN04403 The Promenade 500,000

RDN04410 Cassowary Drive 63,001

RDN04420 Millhouse Road 465,000 2,385 57 2,441 1

RDN04421 Cranleigh Street 35,000 1,138 1,138 3

RDN04426 Chittering Road 125,000 916 29,357 30,273 24 70,000 28,000 40

RDN04432 Albert Road 40,000

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

RDN05402 Street Lighting Upgrades 516,250 17,164 14,342 31,505 6

RDN05405 Traffic Safety Minor Projects 55,000 7,945 27,043 34,988 64

RDN05408 Morrison Road 232,260 224,760 224,760 97

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

RDN05457 O'Brien Road 70,000 242 242

RDN05459 Clenton Road 70,000

RDN05487 Kingsley Drive 75,000

RDN05497 Muriel Street 485,000 88,636 321,570 410,206 85

RDN06404 Hepburn Avenue 3,913,820 142,441 79,067 221,508 6 1,043,680


5/01/2017 10:52:15 AM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN06409 Johnson Street 180,000 73,126 51,182 124,308 69

RDN06420 Bridge Works 1,195,330 314,729 317,324 632,054 53 40,000

RDN06421 Investigation,Design Projects 150,000 130,014 16,817 146,832 98

RDN06437 West Parade 49,000

RDN06450 Lloyd Street 85,000

RDN07402 Local Road Program-Testing 75,000

RDN07403 Contributions For Works To 200,000 9,591 195,312 204,903 102

RDN07425 Beach Road/ Alexander Drive 119,926

RDN07426 Marangaroo Dr/ Illawarra Cres 6,680 1,527 8,206 81,932

RDN07451 Warbrook Road 140,000 4,045 49,016 53,062 38 140,000 56,000 40

RDN07452 Lord Street 3,267,275 124,525 136,994 261,519 8

RDN07454 Malaga Industrial Carparking 255,000 2,917 4,840 7,757 3

RDN08402 Carpark Kingfisher Park 175,000

RDN08427 Pinaster Parade 300,000 96,497 242,343 338,840 113

RDN08436 Jenkins Road 160,000 744 744

RDN08441 Campersic Road 30,936

RDN09403 Bellefin Drive 120,000

RDN09431 Oakover Road 30,000 372 372 1

RDN09440 Bishop Road 105,320 94,419 94,419 90 105,320 148,576 141

RDN10253 Henley Street 150,000

RDN11201 Hazelmere Ind Area Infrast RD 9,468,010 4,552,430 882,890 5,435,320 57

RDN11401 Benara Road 1,205,100 237,809 633,439 871,248 72 750,070 300,027 40

RDN11426 Meadow Street 400,000

RDN12403 Henley Brook Avenue 75,000 19,380 19,380 26

RDN13204 Gnangara Road 5,185,000 4,259,881 1,498,796 5,758,677 111 585,660

RDN13206 Joseph Road 150,000 33,095 92,816 125,911 84

RDN13210 Neaves Road 111,000 9,981 27,856 37,837 34 111,000 44,400 40

RDN14201 Ellenbrook Bridge 1,640,000 99,839 73,224 173,063 11

RDN15003 Clipper Drive 160,000

RDN15006 GNH/Bishop Road 1,400,000 1,153,768 179,428 1,333,195 95

RDN15008 Marshall Road/Lord Street 50,000

RDN15011 Mountjoy Street 15,000

RDN15016 Tyne Link 100,000 91,617 13,695 105,312 105

RDN15017 Victoria Road 460,000 1,474 59,318 60,793 13

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 21,607 21,607 83

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 1,374 26,046 27,420 69

RDN16206 Hyem Road 100,000 3,276 39,806 43,082 43

RDN16207 Inlet Trail 55,000 53,550 (1) 53,549 97

RDN16208 Lefroy Avenue 60,000

RDN16209 Millhouse Rd/Chateau Pl RAB 918,540 75,753 371,115 446,868 49 612,360 244,943 40

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

RDN16211 Moore Road 95,000

RDN16212 Riverside Drive 110,000 23,185 136,564 159,750 145


5/01/2017 10:52:15 AM


JobNumber

JobName



YTDRevenue

% ofBudget

RDN16213 Stirling Cr/Hazelmere Circus 50,000

RDN16214 Weddall Road 285,000 68,109 192,548 260,656 91

RDN16215 New Lord Street 50,000

RDN16216 Benara Road, Intersection 832,380 19,207 47,328 66,535 8

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

RDN Roads 37,283,285 11,996,614 6,007,307 18,003,921 48 7,538,020 2,172,987 29

CAPITAL JOBS TOTAL 92,195,065 25,946,727 18,915,501 44,862,228 49 11,728,460 2,967,472 25

Current Budget

YTD Expense Current Budget

FullYearExpense

Actual Commited Total % ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 8,035,210 2,143,451 2,143,451 27

1608 Purchase of Assets Buildings

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

1613 Purchase of Asset Office F & 587,120 80,748 36,595 117,343 20

1618 Purchase of Assets P & E 8,925,870 3,964,540 1,612,775 5,577,315 62

1623 Purchase of Assets Computer 924,160 324,558 111,391 435,949 47

1628 Purchase of Assets Vehicle 1,964,750 1,478,267 599,783 2,078,049 106

CAPITAL ASSETS TOTAL 20,437,110 8,141,564 2,360,543 10,502,107 51 0 0 0

GRAND TOTAL 112,632,175 34,088,291 21,276,044 55,364,335 49 11,728,460 2,967,472 25


5/01/2017 10:52:15 AM

5.1

4.0 DInvestments

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

11,127,844

28,000,000

8,000,000

47,127,844

Non Fossil Fuel lending ADI's

23,000,000

28,000,000

69,200,000

120,200,000

Total Cash and cash equivalents 167,327,844

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

14%

7%

16%

17%

41%

5%

Investment Portfolio Exposure

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

(A-1, A+) SUN

(A-2, BBB+) MEB

(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

December 2016 Global issues: Global economic data was largely positive during the month. Chinese retail sales and industrial

production were stronger than expected; European business conditions are on an upward trend; and in the US jobless claims, manufacturing data and small business confidence were all market friendly.

Despite some positive economic signs coming out of Europe, remnants of the financial crisis remain with Italian banks Monte dei Paschi Siena and UniCredit announcing capital raising plans in bids to avoid collapse. Meanwhile, Deutsche Bank, Germany’s largest bank, settled with the US Dept of Justice for US$7.2bln for its role in pooling and selling of faulty mortgage securities during the GFC.

The US Federal Reserve raised the nation’s key cash rate by 25 basis points at its December meeting to a 0.50-0.75% range. The market expects up to three more rate rises by the Fed in 2017. The US dollar strengthened over the month with the AUD/USD dropping from 73.9c to 72.3c during the month.

Domestic issues: In Australia, Q3 GDP surprised the market with a negative reading. Weakness in housing, consumer

spending and business investments contributed to the decline of 0.5% over the September quarter. Recession fears are low as most economists are predicting a boost in growth during Q4.

Other data was mixed, with business conditions and jobs growth stronger than expected, but business conditions and consumer confidence fell.

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 Q1 2018. Term deposit rates across most maturities ended largely unchanged for the month. Three month TDs

from Australian majors closed December in the 2.50%-2.65% area and the best indicative 12 month rate from a four major was at 2.75%.

Investment Portfolio Commentary The City’s investment portfolio posted a return in December of 2.64%pa versus the bank bill index benchmark return of 1.72%pa. 72% of the portfolio was invested in non-fossil fuel lending ADIs. For the financial year to date, the investment portfolio returned 2.65%pa, exceeding the bank bill index benchmark’s 1.84%pa by 0.81%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 116,644 77,212 39,432 34%Sanitation Charges 22,393 20,013 2,380 11%Drainage Charges 2,647 2,548 99 4%Security Charges 1,268 1,143 125 10%Other 39 34 5 13%

142,991$ 100,950$ 42,041$ 29%

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 31 December 2016

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

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 $6.6m

Current Debtors outstanding$35.4m

Total Debtors $42m

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 31 December 2016

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - - - 252,086 252,086 25.98% 17.54%2 - - - 127,700 127,700 13.16% 8.88%3 - - - 70,000 70,000 7.21% 4.87%4 - - - 61,282 61,282 6.32% 4.26%5 - 51,707 - 37,014 88,721 3.81% 6.17%6 - - - 35,000 35,000 3.61% 2.43%7 - - - 24,447 24,447 2.52% 1.70%8 - - - 21,230 21,230 2.19% 1.48%9 - - - 20,000 20,000 2.06% 1.39%

10 - - - 17,400 17,400 1.79% 1.21%Other Debtors 341,112 68,625 5,735 304,250 719,722 31.35% 50.06%

Total 341,112 120,332 5,735 970,409 1,437,588 100.00% 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.

Payment received by Fines Enforcement Registry, City awaiting payment to be transferred.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

Prosecution debt, awaiting court decision on the appeal made by the debtor.

Progress for the recovery of Funds Comment



Current 24%

30 Days 8%

60 Days 0%

90 Days plus 68%

7.1

Income from Operating Activities

Governance 434% Favourable Variance of $355,748

Health 96% Favourable Variance of $130,203

Education & Welfare 16% Unfavourable Variance of $403,690

Transport 11% Favourable Variance of $114,164

Economic Services 21% Favourable Variance of $164,442

Other Property and Services 13% Unfavourable Variance of $195,314

An amount of $231k relating to the rebate of insurance from the LGIS was the main cause of this variance. A budget adjustment will be processed during the budget review process.

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

Annual Food Safety fees were again the main reason for this favourable result, with fees collected to date totalling $198k. The account will be analysed during the mid-year budget review process and a budget adjust will be processed, if required.

The unfavourable variance is mostly due to the Kidsport grant of $356k which has not been received yet and also due to the Swan Community Care Services HACC grant being $188k less than anticipated. The negative variances were partially offset by the Swan Community Transport HACC grant which was over budget by $128k.

The Formula Local Road grant has exceeded budget expectations by $160k, accounting for the majority of the variance within Transport. During the mid-year budget review process, a budget adjustment will be processed to take the additional revenue into account.

Revenue recorded for the National Economic Development Conference was the main cause of the positive result, being $141k more than anticipated. A budget adjustment to recognise the additional income was processed in September.

Commercialisation rental revenue was under budget by $133k mainly due to timing differences. The variance is expected to reduce in January upon receipt of outstanding rent. Subdivision application fees within Asset Management were also below budget by $63k mainly due to the downturn in the housing market within Western Australia.

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Expenditure from Operating Activities

General Purpose Funding 12% Favourable Variance of $151,697

Governance 17% Favourable Variance of $1,112,262

Education & Welfare 12% Favourable Variance of $582,791

Transport 29% Favourable Variance of $5,386,500

Economic Services 14% Favourable Variance of $429,187

Other Property and Services 29% Unfavourable Variance of $408,800

Non Cash Items

Depreciation 18% Unfavourable Variance of $3,297,329

Provisions and Other Accruals 42% Favourable Variance of $336,084

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 59% Unfavourable Variance of $4,790,672

Rating services Recoup of Legal costs and Collection charges reflected favourable variances of $175k and $62k respectively. The variances were offset by the following accounts also within the Rating Service cost centre, which were overspent mainly due to timing differences: Postage $30k, Bank Charges $41k and Legal Expenses $89k.

Employee Costs were the main cause of the variance being $944k less than budget. Some positions, particularly for the Core System replacement, were vacant for part of the financial year and some positions are still to be filled. Staff leave taken over the Christmas break also contributed to the positive variance for Employee Costs. Projects Studies and Surveys were also under budget by $451k, with the following projects displaying the least expenditure compared to ytd budget: Leadership Development Program $84k, Corporate Website $36k and Swan Valley Publications $35k.

The favourable variance is a result of timing differences. The add-back of non-cash provisions and other accruals (mainly employee non-current provisions) are higher than budget. It is anticipated that this variance will align to budget as the year progresses.

Operating projects were underspent by $499k, accounting for the majority of the positive variance within Education & Welfare. Of this, the HACC Program Swan Community Care Services project contributed $93k, Youth Initiative-HYPER $77k, Swan Community Grants $100k and Cultural Events $35k.

Within Transport, the majority of the variance is attributed to depreciation. As part of the 2015/16 year end process, a review of the remaining useful lives assets was undertaken, impacting on depreciation charge out rates. Deprecation variances will be analysed and budgets will be adjusted accordingly as part of the mid-year budget review process.

Employee Costs, due to some vacant positions were below budget by $99k. Projects Studies and Surveys were also down compared to budget by $154k. Significant below budget variances were noted for the following jobs, within the Strategic Land Use Planning cost centre: Urban Design/Heritage Working Paper $38k, Midland Implementation Plan $30k and Community Plans $21k.

Overhead Recovery, which is correlated to capital expenditure was less than budget expectations by $621k, mainly contributing to the unfavourable result. Slow progress in capital works has resulted in low capital expenditure and consequently low overhead recovery. The variance is expected to reduce as capital works advance during the course of the year.

The unfavourable variance is offset by the $3.3m positive variance for Depreciation within Operating Activities. The positive variance resulted from 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. Depreciation will be analysed during the mid-year budget process.

The Roads to Recovery Grant accounted for $2.9m or 60% of the unfavourable result. This variance should reduce as a further payment from Main Roads is expected during the course of the financial year. Capital Grants for Buildings and Urban Arterial Roads also added to the variance, being below budget by $1.7m and $971k respectively. As works progress the grants will be acquitted and actuals will align closer to budget.

7.3

Purchase of Plant and Equipment 28% Favourable Variance of $7,010,817

Purchase or Construction of Infrastructure 41% Favourable Variance of $11,160,194

Other Non Operating Items

Loan Principal Repayments 15% Favourable Variance of $447,065

Transfer to Reserves 12% Favourable Variance of $2,564,045

Other Funding Sources

Transfer from Reserves 31% Unfavourable Variance of $7,838,304

Transfer (to) from Trust Funds 100% Favourable Variance of $1,963,395

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

Proceeds from Sale of Assets 90% Unfavourable Variance of $5,861,646

Self Supporting Loans Repayments 59% Unfavourable Variance of $26,019

Proceeds from New Loans 43% Unfavourable Variance of $2,432,030

Movement in Deferred Rates (Non-Current) 167% Unfavourable Variance of $134,032

Opening Net Current Assets July 1 B/Fwd. 101% Favourable Variance of $8,763,981

Expenditure within the City Asset Replacement Reserve and Developer Contribution Plans is below ytd budget. Expenditure is anticipated to increase during the second half of the financial year reducing the unfavourable variance.

Building works accounted for $4.4m of the favourable result and Land Purchases accounted for $1.9m.The variance is expected to align closer to budget as the year progresses.

The following capital projects reflected significant below budget spend, accounting for the majority of the favourable result within Purchase or Construction of Infrastructure: Paradise Quays Park $804k, Brabham Neighbourhood Park $483k, Caversham Oval $588k, Hepburn Avenue $1.8m and Lord Street $1.5m.

The favourable variance is anticipated to reduce and align to budget as City loans are drawn in line with expenditure on capital projects. In December loans were drawn for the Midland Youth Services Hub building and the Gnangara Road project.

The favourable variance is attributable to less than budgeted transfers to the Plant and Equipment reserve and Developer Contribution Plans. The timing of these transfers is expected to align with budget during the course of the year.

The favourable variance in trust distributions is attributed to transfers that are yet to be actioned. The transfers are subject to sale of land transactions that are yet to occur.

As a result of legal proceedings an additional $1.6m was recovered from investments. A budget adjustment was actioned in August to account for these proceeds.

The unfavourable variance within proceeds from sale of Assets will reduce as budgeted asset disposals are actioned during the course of the year.

The negative result within Self Supporting Loans Repayments is due to the timing differences. Actuals will align to budget as the year progresses.

The City has drawn down two loans this financial year. The remaining City loans are related to expenditure on capital works projects and the purchases of assets. The negative result will reduce accordingly during the second half of the year as spending is increased and loans are drawn down.

The unfavourable variance is a timing difference of actual deferred rates against budget year to date. As payments are received the variance is expected to reduce during the year.

The 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.

7.4

Original Budget2016/17

Revised Budget2016/17

YTD ORIGINALBUDGET

@ 31 DECEMBER 2016


2016

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

116,312,404 116,312,404 Rates 115,417,403 115,067,046 (350,357) - -11,224,090 11,224,090 Grants and Other Contributions 6,022,245 6,002,033 (20,212) - -

127,536,494 127,536,494 Total General Purpose Funding 121,439,648 121,069,078 (370,570)166,830 166,830 Governance 81,888 437,636 355,748 F 434%

2,333,190 2,307,190 Law, Order and Public Safety 1,855,242 1,925,082 69,840 - -271,000 271,000 Health 135,500 265,703 130,203 F 96%

4,526,420 4,526,420 Education and Welfare 2,554,625 2,150,935 (403,690) U (16%)60,000 60,000 Housing 30,000 32,674 2,674 - -

21,973,000 21,976,700 Community Amenities 21,186,500 22,415,596 1,229,096 - -7,177,270 7,177,270 Recreation and Culture 3,537,085 3,436,265 (100,820) - -1,663,940 1,663,940 Transport 1,035,420 1,149,584 114,164 F 11%1,530,000 1,686,300 Economic Services 765,000 929,442 164,442 F 21%3,032,420 3,032,420 Other Property and Services 1,516,211 1,320,897 (195,314) U (13%)

170,270,564 170,404,564 Subtotal Income 154,137,119 155,132,891 995,772

Expenditure(2,942,622) (2,941,362) General Purpose Funding (1,295,455) (1,143,758) 151,697 F 12%

(13,281,212) (13,194,311) Governance (6,683,717) (5,571,455) 1,112,262 F 17%(6,073,486) (6,028,616) Law, Order and Public Safety (3,039,810) (2,991,736) 48,074 - -(1,827,893) (1,828,563) Health (913,948) (843,040) 70,909 - -(9,357,259) (9,342,529) Education and Welfare (4,734,613) (4,151,821) 582,791 F 12%

(99,167) (99,167) Housing (49,584) (42,042) 7,542 - -(25,107,287) (25,228,957) Community Amenities (12,530,847) (11,927,268) 603,578 - -(51,727,302) (51,797,302) Recreation and Culture (26,066,171) (23,979,801) 2,086,370 - -(36,977,516) (37,049,356) Transport (18,371,912) (12,985,413) 5,386,500 F 29%

(6,052,841) (6,312,281) Economic Services (3,026,382) (2,597,195) 429,187 F 14%(2,931,126) (2,870,076) Other Property and Services (1,387,700) (1,796,500) (408,800) U (29%)

(156,377,712) (156,692,522) Subtotal Expenditure (78,100,138) (68,030,029) 10,070,110

13,892,852 13,712,042 Net Operating Profit / (Loss) 76,036,981 87,102,862 11,065,882

ADD NON CASH ITEMS37,518,100 37,518,100 Depreciation 18,759,050 15,461,722 (3,297,329) U (18%)

1,617,197 1,617,197 Provisions and Other Accruals 808,599 1,144,682 336,084 F 42%39,135,297 39,135,297 Subtotal Non Cash Items 19,567,649 16,606,404 (2,961,245)

53,028,149 52,847,339 Net Operating Surplus / (Deficit) 95,604,629 103,709,266 8,104,637

LESS CAPITAL INCOME & EXPENDITURE12,350,970 12,600,670 Capital Grants, Subsidies & Contributions 8,110,450 3,319,778 (4,790,672) U (59%)

7,203,730 7,203,730 Developers Contributions: Cash contribution 3,601,865 3,586,476 (15,389) - -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) (54,352,510) Purchase of Plant and Equipment (25,148,035) (18,137,218) 7,010,817 F 28%(29,530,870) (29,530,870) Assets Contributed by Developers - - - - -(54,122,030) (58,279,665) Purchase or Construction of Infrastructure (27,061,015) (15,900,821) 11,160,194 F 41%

(4,083,130) (4,083,130) Land Ceded to the Crown - - - - -(84,863,400) (92,827,775) Subtotal Capital Income and Expenditure (40,496,735) (27,131,784) 13,364,951

LESS OTHER NON OPERATING ITEMS(5,869,484) (5,869,484) Loan Principal Repayments (2,934,742) (2,487,678) 447,065 F 15%

(41,901,318) (43,472,322) Transfer to Reserves (20,950,659) (18,386,614) 2,564,045 F 12%(47,770,802) (49,341,806) Subtotal Other Non Operating Items (23,885,401) (20,874,291) 3,011,110

OTHER FUNDING SOURCES50,934,391 58,947,386 Transfer from Reserves 25,467,196 17,628,892 (7,838,304) U (31%)(3,926,790) (3,926,790) Transfer (to) from Trust Funds (1,963,395) - 1,963,395 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 6,512,381 650,735 (5,861,646) U (90%)

87,481 87,481 Self Supporting Loans Repayments 43,741 17,721 (26,019) U (59%)11,432,060 11,432,060 Proceeds from New Loans 5,716,030 3,284,000 (2,432,030) U (43%)

(160,652) (160,652) Movement in Deferred Rates (Non current) (80,326) (214,358) (134,032) U (167%)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 89,688,932 Subtotal Other Funding Sources 44,409,311 40,419,102 (3,990,209)

498,883 366,689 CLOSING NET CURRENT ASSETS YTD 75,631,804 96,122,292 20,490,488

CITY OF SWANSTATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @DECEMBER 2016

ACTUAL @JUNE 2016

ACTUAL @DECEMBER 2015

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 66,380,691 30,723,289 66,967,554Restricted Cash, Cash Equivalents & Investments 100,947,153 102,524,229 98,204,293Rates Debtors Current 46,853,516 6,949,724 42,107,611Trade and Other Receivables 2,776,075 2,723,870 2,606,465Prepayments 542,897 776,014 422,708Inventory 297,599 169,838 238,263Total Current Assets 217,797,932 143,866,964 210,546,893

Less Current LiabilitiesIncome in Advance (890,514) - (674,078)Accounts Payable (13,302,967) (18,472,821) (11,350,273)Provisions - Employee Entitlements (13,397,889) (12,847,797) (11,859,514)Loan Repayments (3,065,026) (5,412,027) (2,785,585)Total Current Liabilities (30,656,395) (36,732,645) (26,669,452)

Net Current Assets 187,141,537 107,134,319 183,877,442

Add Back Restricted LiabilitiesLSL Reserve 6,932,643 5,958,432 5,412,398Loan Repayments 3,065,026 5,412,027 2,785,585Self Supporting Loan Contributions (69,760) (87,481) (48,403)

Adjusted Net Assets 197,069,445 118,417,297 192,027,021

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (97,956,302) (97,198,580) (92,195,248) Bond monies (2,990,852) (3,741,051) (6,009,045)

Closing Funds 96,122,292 17,477,666 93,822,728

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

CITY OF SWAN NET CURRENT FUNDING POSITION

AS AT 31 DECEMBER 2016

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@ 31 DECEMBER 2016

ACTUAL @30 JUNE 2016

Receipts116,058,352 116,312,404 Rates Revenue 75,839,410 111,701,344

1,172,000 1,172,000 Service Charges 1,215,564 1,189,82635,662,650 35,662,650 Fees & Charges 29,295,198 36,636,208

5,751,290 5,751,290 Interest Earnings 2,812,295 5,096,97110,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,364,933 7,942,983

1,134,698 1,134,698 All other revenue 994,010 1,952,7174,379,020 4,379,020 GST Inflow 3,268,036 6,084,086

174,479,070 174,723,122 Total Receipts 118,789,447 170,604,135Payments

(32,398,685) (33,363,673) Materials & Contracts (17,416,267) (24,457,974)(6,575,148) (6,570,760) Utility Charges (2,372,695) (5,914,655)

(74,563,550) (74,812,790) Employee Costs (34,664,932) (66,658,084)(668,280) (668,280) Insurance Payments (862,881) (674,790)

(2,141,200) (2,141,200) Interest Payments (790,196) (2,084,173)(1,616,720) (1,617,720) Other Payments (1,535,138) (1,666,615)(4,661,904) (4,661,904) GST Outflow (2,974,451) (5,907,824)

(122,625,487) (123,836,327) Total Payments (60,616,561) (107,364,115)51,853,582 50,886,794 Net cash provided / (used) by operating activities 58,172,886 63,240,018

CASH FLOWS FROM INVESTING ACTIVITIES Payments

(50,296,070) (54,352,510) Purchase / Construction of capital assets (18,137,218) (27,494,941)(54,122,030) (58,279,665) Purchase / Development of infrastructure (15,900,821) (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) (116,558,965) (32,463,592) (82,702,538)Receipts

12,350,970 12,600,670 Capital Grants, Subsidies & Contributions 3,319,778 18,123,6747,203,730 7,203,730 Developers Contributions 3,586,476 11,174,411

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 650,735 2,473,56232,579,462 32,829,162 7,556,989 31,771,647

(75,765,428) (83,729,803) Net cash provided / (used) by investing activities (24,906,603) (50,930,891)CASH FLOWS FROM FINANCING ACTIVITIES

11,432,060 11,432,060 Proceeds from Loan Borrowings 3,284,000 6,848,620(5,869,484) (5,869,484) Repayment of Borrowings (2,487,678) (5,430,069)

87,481 87,481 Contributions - Self supporting loans 17,721 95,286- - ESL Movements - (276,932)

5,650,057 5,650,057 Net cash provided / (used) by financing activities 814,044 1,236,905(18,261,789) (27,192,952) Net increase / (decrease) in cash held 34,080,328 13,546,032118,753,596 118,753,596 Cash at the beginning of the year 133,247,518 119,701,485100,491,807 91,560,644 CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 167,327,844 133,247,518

CITY OF SWAN STATEMENT OF CASH FLOWS


8.3

ORIGINALBUDGET2016/17

REVISEDBUDGET2016/17 OPERATING REVENUE

YTD ORIGINALBUDGET

@ 31 DECEMBER 2016


20161,172,000 1,172,000 Service Charges 1,172,000 1,215,564

35,662,650 35,662,650 Fees & Charges 28,156,724 29,295,1982,588,578 2,588,578 Specified Area Rates 2,588,578 2,627,758

10,321,060 10,311,060 Operating Grants, Subsidies & Contributions 5,617,492 5,364,9335,751,290 5,751,290 Interest Earnings 3,257,945 3,196,1411,051,160 1,195,160 Other Revenue 515,554 994,010

56,546,738 56,680,738 Subtotal - operating revenue 41,308,294 42,693,605OPERATING EXPENSE

(74,643,550) (74,812,790) Employee Costs (36,966,425) (34,842,619)(33,219,103) (33,363,673) Materials & Contracts (16,657,769) (12,914,978)

(6,570,760) (6,570,760) Utility Charges (3,071,770) (2,372,695)(37,518,100) (37,518,100) Depreciation on Non-Current Assets (18,759,050) (15,461,722)

(2,141,200) (2,141,200) Interest Expenses (791,239) (790,196)(668,280) (668,280) Insurance Expenses (977,025) (862,881)

(1,616,720) (1,617,720) Other Expenses (876,860) (784,939)(156,377,713) (156,692,523) Subtotal - operating expense (78,100,138) (68,030,030)

(99,830,975) (100,011,785) Net cash from / (Non) operating activities (36,791,845) (25,336,426)Non Cash Items

(160,652) (160,652) Movement in Deferred Rates (Non Current) (80,326) (214,358)1,617,197 1,617,197 Movement in Employee Provisions and Adjustments 808,599 1,144,682

37,518,100 37,518,100 Write Back Depreciation 18,759,050 15,461,72238,974,645 38,974,645 Total 19,487,323 16,392,046

Capital Works(54,122,030) (58,279,665) Purchase / Construction of infrastructure assets (27,061,015) (15,900,821)(29,530,870) (29,530,870) Developer contributions - Infrastructure - -(50,296,070) (54,352,510) Purchase / Construction of other capital assets (25,148,035) (18,137,218)

13,024,762 13,024,762 Proceeds from Sale of Fixed Assets 6,512,381 650,73512,350,970 12,600,670 Capital Grants, subsidies & Contributions 8,110,450 3,319,778

7,203,730 7,203,730 Developers contributions: Cash 3,601,865 3,586,47611,117,490 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) (79,803,013) Net Capital Outlays (33,984,354) (26,481,049)Debt Management

11,432,060 11,432,060 Proceeds from New Loans 5,716,030 3,284,000(5,869,484) (5,869,484) Repayment of Loans (2,934,742) (2,487,678)

87,481 87,481 Contributions to Debt 43,741 17,7215,650,057 5,650,057 Total 2,825,029 814,044

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 (1,963,395) -50,934,391 58,947,386 Transfers from reserves 25,467,196 17,628,892

(41,901,318) (43,472,322) Transfers to reserves (20,950,659) (18,386,614)5,106,283 13,119,274 Net Movement in Reserves 2,553,142 816,724

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 (75,631,804) (96,122,292)8,214,802 8,346,996 Net Current Assets (Less Restricted) (66,918,119) (78,644,626)

113,723,826 113,723,826 SHORTFALL TO BE MADE UP FROM RATES 112,828,825 112,439,288


CITY OF SWANRATE SETTING STATEMENT

financial management report - december 2016

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