2009/10 ANNUAL REPORT...2009/10 Annual Report - Page 5 It is with pleasure that I present to you a...

2009/10

ANNUAL REPORT

2009/10 Annual Report Page 2

2009

/ 20

10

Contents

Our Mission

Page

Shire President’s Report 4

CEO’s Report 6

Elected Members and Executive 8

Executive Services 9

Community Services 12

Development Services 20

Engineering Services 24

Corporate Services 27

Financial Report 31

The spirit of Esperance is unique, we take pride in being a creative, caring, and

supportive community.

We live in a diverse and dynamic region with outstanding opportunities for all.

As custodians, we are committed to protect

our spectacular natural environment.

Esperance has a sense of community ownership with a commitment to determine

its own direction.

We make it happen!

The Shire of Esperance will listen to its people and provide services in a caring, responsive and consultative manner through Councillors and

staff that are well equipped to meet community needs, and show leadership in development at

regional and higher levels.

Our Vision

redrawn to enable the Munglinup townsite to become part of the Shire of Esperance. It is expected that this may be progressed in due course through the Local Government Advisory Board process, pending both the Shire’s of Esperance and Ravensthorpe undertaking some further due diligence. Councillors and staff recognise the importance of having a new Town Planning Scheme, and finally, after years of frustration at the delays of State Government departments in progressing the issue, the Shire of Esperance Local Planning Scheme No.23 was gazetted on 19 February 2010. The Scheme, coupled with the Local Planning Strategy, which was also finalised in February 2010, enables Council to clearly express to the development industry and the community its strategic vision, policies and proposals with respect to the development of the Esperance Shire area. One of the challenges faced by Council each year is balancing the needs of a growing community with available resources. The Shire, like your household, is not immune from rising utility and service costs, and in particular the recent well publicised rise in the cost of electricity has seen Council have to make greater allowances in these areas. Council has reviewed budgets, prioritised and cut costs where possible, however we also believe that excellent service delivery to the community needs to be maintained. As a consequence, and in order to balance the 2009/2010 Budget, we have elected to have a rate increase of 5.75%.

It is with pleasure that I present to you the Shire of Esperance Annual Report for 2009/2010. The past 12 months have again presented a number of challenges as well as successes, and this Annual Report illustrates our performance over this period. Whilst the closure of BHP Billiton’s Ravensthorpe Nickel Operation (RNO) was a major stumbling block for the region in 2009, a white knight in the form of Canadian Miner First Quantum Minerals (FQM) generated much needed optimism with their purchase of the often maligned operation in December 2009. Production from the operation is expected to recommence in 2011/12, with the recommissioning sure to provide local service industries with a welcome boost. Despite RNO being non-operational over the 2009/10 year, the Shire has continued to enjoy increased growth, which is an indication of the resilience of our community, and highlights that we have a diverse industry base to help us develop into the future. The past year has seen the WA Government announce a number of local government reform strategies that it would like to see implemented. The Minister for Local Government has on numerous occasions indicated that he does not intend to instigate legislative change for local government reform, but has requested that local governments voluntarily investigate opportunities for a reduction in the number of local governments in WA, as well as a reduction in Elected Member numbers. The Shire of Esperance has taken a practical approach in this regard, indicating a willingness to undertake further investigation and business planning to determine whether there is any economic or social benefit in amalgamating, partly or wholly, with either of our neighbours, both of whom have formally indicated they are not interested in any type of reform. At this stage, unless the Minister advises otherwise, it seems as though the status quo will prevail for the Shire in terms of the reform agenda. Notwithstanding the above, as part of the consultation that the Shire undertook in this regard, the Munglinup Community Group expressed a willingness to have the boundaries

Shire President’s Report

2009/10 Annual Report - Page 4

...Shire President’s Report

The Council is the custodian of many community assets, and they all require care, maintenance, and whole-of-life planning. Council has increased its focus on asset management in recent years to ensure that we are providing sufficient funds to adequately maintain roads, footpaths, buildings, and other community infrastructure. The past year has seen the Shire take further steps in relation to implementing asset management best practice, which will incorporate the development of asset management plans across all our asset classes, and culminate in the creation of long-term financial plans, which will help provide a clear financial direction in regard to the Shire’s priorities over the medium-long term. Whilst on the topic of priorities and direction, the Council has identified a number of key projects which will remain priority projects over the coming years. These include the upgrade of the Port Transport Corridor, the Esperance Foreshore Protection and Enhancement Project, and master planning for the upgrade of the Greater Sports Ground. Each of these projects is at various stages of progression, and the Shire will be exhausting all avenues to ensure they are progressed as priority projects. The 2009/2010 year has seen the continuation of the Federal Government’s economic stimulus payments through the Regional and Local Community Infrastructure Program (RLCIP). The Shire was allocated a further $113,000 through this program in 2009/2010, which Council resolved to put towards the installation of solar panels on the Bay of Isles Leisure Centre (BOILC) and the implementation of the playground strategy. The installation of solar panels at the BOILC will reduce the centre’s electricity costs by around 12%, with the panels expected to be installed later in 2010. People will recall that Council chose to spend its 2008/2009 RLCIP allocation of $300,000 to complete the museum extension. I am happy to report that all construction works have now been completed, and the maritime extension was officially opened in July 2010. I encourage everyone to visit the new extension to see firsthand the maritime history of our region.

Furthermore, the Shire received almost $1.7 million as its year 1 allocation from the WA Governments Royalties for Regions program. Rather than dilute these funds across a range of projects, Council has allocated the funds to only a handful of projects to ensure maximum benefit for the community. The R4R funds have been allocated towards the upgrade of the Tanker Jetty ($1 million), and the balance towards upgrading the buildings and grassed playing areas at the Greater Sports Ground. Any subsequent funds allocated to the Shire over the coming years via R4R or any other program will be considered by Council in conjunction with associated funding guidelines. The 2009/2010 year has also seen the Shire reap the benefit of much planning and work that has gone into the development of the Flinders subdivision. The initial auction in May of lots at Flinders Stage 2 was a tremendous success, with 14 of the 15 lots up for sale having now been sold. The Shire will hold a further auction later in 2010. Flinders Stage 2 comprises 89 residential lots in total, and it is expected that future releases will take place in the coming years as demand dictates. Council fully recognises the importance of a dedicated and professional staff. We are all proud of the great team that work for the Shire of Esperance, willingly going the extra mile to ensure that services are of the highest quality. The senior executive team are enthusiastic and highly professional, and all staff members contribute to a dedicated team. I thank each and every one of them for their efforts. I also thank all my fellow Councillors for their dedication and commitment to their responsibility; always contributing in a positive manner to make the Shire of Esperance a better place for all.

Cr Ian Mickel, AM JP Shire President


It is with pleasure that I present to you a report on the operational performance of the Shire of Esperance for the 2009/2010 financial year. The Annual Report reviews the Shire’s achievements for the past year in line with the Plan for the Future, the Strategic Plan and adopted Budget. Esperance continues to enjoy a remarkable period of development and change, despite even the global financial crisis that has had such a dramatic effect on world financial markets over the past 12 months. As a result of its fiscal management policies, the Shire of Esperance remains in a healthy financial position whilst continuing to deliver a high level of service to the community during these challenging times. The 2009/2010 financial year has been a productive one for the Shire, with many strategically important projects making significant progress or being completed: The Flinders Stage 2 subdivision has now been completed, with 15 lots going under the hammer as part of the first land release in May. Fourteen of the 15 lots released have since been sold, with a further auction to take place later in 2010. All titles have now been obtained for lots at the Shark Lake Industrial Park. These lots also went under the hammer in conjunction with the lots at Flinders, however none were sold at the May auction. It is envisaged that more will be released for sale later in 2010 giving prospective purchasers a greater choice in size and location. The extension to the Esperance Museum has now been completed thanks to stimulus funding received from the Australian Government’s Regional and Local Community Infrastructure Program. Construction has commenced on the Emergency Services co-location facility. It is expected the facility will be complete by the end of 2010, and will enable the co-location of the State Emergency Service, Esperance Volunteer Sea Search & Rescue, and the Esperance Volunteer Fire & Rescue Service.

The Shire has established a Playground Strategy to guide standards of p layground deve lopment and rationalization within the Shire. Eagle Court, Treasure Road and Hockey Place playgrounds have been the first to receive upgrade treatments. The Shire is undertaking an Organisational Risk Management pilot project through our insurers, LGIS, which will assist the organisation in applying risk management best practice in everything we do. Local Planning Scheme No. 23 was gazetted in February 2010. The Scheme, coupled with the Local Planning Strategy, which was also finalised in February, enables Council to clearly express to the development industry and the community its strategic vision, policies and proposals with respect to the development of the Esperance Shire area. The Shire has taken a leadership role in identifying a solution to our foreshore erosion issues and is developing concept plans that will provide a first and last line of defence to coastal erosion as well as portraying how the community amenity aspect of the foreshore and Tanker Jetty surrounds can be improved. Once formal costings have been developed, a funding strategy will be produced. As well as capital projects, the past year has also seen the Shire commence a number of strategic operational imperatives. As mentioned by the Shire President, a key focus for the Shire both over the past twelve months and into the future is asset management. The ability to know and understand the condition of our infrastructure assets is one of the first steps in being able to develop forward financial plans.

CEO’s Report

...CEO’s Report The Shire has established a Strategic Asset Management Working Group whose task it is to develop first cut asset management plans for each of our asset classes, therefore facilitating the development of forward financial plans to assist with future strategic planning. Whilst on the topic of Officer working groups, the Shire has also initiated a staff consultative committee to develop the Shire’s first Collective Bargaining Agreement (CBA) for staff. The intent of the CBA is to bring all Shire staff under the one employment agreement. It is envisaged that once implemented, the new Agreement will harbor benefits for both staff and the Shire. Historically, administration staff have worked under the Local Government Officers Award, and outside staff under a Municipal Employees Award. With the introduction of the new Local Government Industry Award the two existing awards have been transitioned into a single industry Award. The past twelve months has seen high levels of staff turnover and difficulties in the recruitment of staff. This presents challenges to the Council and Administration from a service delivery perspective, the completion of the capital works campaign, the creation of an additional cost burden and pressure on staff. However, we are pleased to welcome a number of new staff members to the Shire and are positive they will grow and develop to guarantee the Shire’s highly regarded professional and progressive reputation is upheld. I would like to take this opportunity to thank all my Senior Executive Managers, Rod Hilton, Richard Hindley, Gavin Harris and Darren Kennedy for their dedication and support over the past year, and to all Shire staff throughout the organisation in their tireless effort and commitment to making the Community of Esperance a great place to live. There is much work to be done throughout 2010/2011 for the betterment of Esperance, and I look forward to working with the Staff, the Council, and especially the Community in achieving the goals set by Council.

The Shire of Esperance looks forward with confidence to the future, with a commitment to responsible planning, asset management, and the highest standard of service delivery.

M J (Mal) Osborne Chief Executive Officer

Elected Members and Executive

Shire President

Cr Ian Mickel, AM, JP

Executive Management Team

Councillors

Deputy Shire President

Cr Wayne Rodgers

Cr Christine Smith Cr Ian Mickel Cr Nigel Walker Cr Trevor Furniss

Cr Brian Pearce Cr Beverley Stewart Cr George Starcevich Cr Mike Penny Cr Peter Paxton Cr Ron Reynolds Cr Wayne Rodgers

Mal Osborne Chief Executive Officer

Darren Kennedy

Executive Manager Corporate Services

Richard Hindley

Executive Manager Development Services

Rod Hilton

Executive Manager Community Services

Gavin Harris

Executive Manager Engineering Services

Rural Ward

Town Ward

Executive Services

Emergency Services

Governance

Human Services

Major Projects

Occupational Safety & Health

Strategic Planning

Chief Executive Officer

Mal Osborne

Executive Services Team

Greg Golinski

Ian Liddle

Janet Done

Lee Anderson

Lynda Horn

Melissa Ammon

Elected Members

The Council of the Shire of Esperance consists of eleven (11) Elected Members. Each is elected for a four year term. Elections are held every two years with half of the Council seats being contested each time. The Council is divided into two wards, with the Town Ward represented by seven (7) Councillors and the Rural Ward represented by four (4) Councillors. Town Ward: Cr Beverley Stewart, (Retiring 2013) Cr Wayne (Buck) Rodgers (Retiring 2013) Cr Mike Penny (Retiring 2013) Cr Peter Paxton (Retiring 2013) Cr Ron (Doc) Reynolds (Retiring 2011) Cr Brian Pearce (Retiring 2011) Cr George Starcevich (Retiring 2011) Rural Ward: Cr Ian Mickel, (Retiring 2013) Cr Christine Smith (Retiring 2013) Cr Nigel Walker (Retiring 2011) Cr Trevor Furniss (Retiring 2011) The Council meets on the evening of the fourth Tuesday of every month as part of a monthly business cycle, with Council meetings being open to the general public.

Executive Services

Reports to the Council are the formal method by which the administration provides advice to the Elected Members. The majority of business is dealt with by the All Purpose Committee of Council, which makes recommendations to the Council. Prior to January 2010, the Shire had two Standing Committees, being the Corporate and Community Services Committee and the Engineering and Development Services Committee. These two Committees were consolidated in December 2009, resulting in the current All Purpose Committee. The All Purpose Committee comprises all eleven (11) Elected Members. Agendas for Council and Committee meetings are made available to members of the public on the Shire’s website, as well as at the Shire Administration Offices and Library. Minutes of all Council and Committee meetings are also publicly available.

Mal Osborne, Shire CEO

Cr Ian Mickel congratulates retiring Cr Tony Ietto


The Year in Review

July 2009 Council endorses a partnership agreement

between the Shire of Esperance and the City of Rockingham to help foster mutually beneficial relationships.

Under direction from the Minister for Local

Government, Council endorses four options for structural reform for the Shire and begins the process of community consultation.

August 2009

Council adopts the Bandy Creek Structure

Plan. Council advises the Minister for Local

Government that it declines the prospect of amalgamating with either of its adjacent local governments.

September 2009

Council approves a development application

for a Winery in Grass Patch.

October 2009 Local Government Elections were held, with

long-serving Councillor Tony Ietto retiring after 19 years of continuous service to the Esperance community.

Councillors Mike Penny, Christine Smith, Ian

Mickel, Beverley Stewart, Wayne Rodgers and Peter Paxton are elected unopposed as Councillors until 2013.

Councillor Ian Mickel is elected as Shire

President and Councillor Wayne Rodgers is elected as the Shire’s Deputy President.

November 2009

Council commits funds toward detailed

designs and cost estimates for the construction of a seawall between the Tanker Jetty and the James Street groyne, as well as design, costings and community consultation for landscaping and community infrastructure along the foreshore reserve.

Executive Services

Council awards the FESA Co-location

Facility tender to Stirling Constructions. Council agrees to a restructure of its

Standing Committee system by disbanding the Corporate & Community Services and Engineering & Development Services Committees, and replacing them with an All Purpose Committee.

January 2010

Council endorses a statement of support

for Esperance Ports Sea & Land, recognising the important role that the Port plays in relation to facilitating regional trade, the local economy, and the economy of the Goldfields-Esperance region.

February 2010

Council supports in-principle the proposal

by the Rotary Club of Esperance to construct a Stonehenge replica within the Shire.

Shire of Esperance Local Planning Scheme

No.23 is gazetted.

March 2010 Council endorses a project brief and

selection criteria for the preparation of a Commercial Strategy for the Esperance Townsite.

April 2010

Council supports sand/lime mining activities

that are the subject of a mining lease on a property along Connolly Street.

May 2010

Initial auction of land at the Shark Lake

Industrial Park and Flinders Stage 2. Council determines that it will close the

Condingup tip site on 30 September 2010.

June 2010 Council sells lot 384 Chaplin Street, despite

concern from neighbouring residents.

Belinda O’Brien

Dale Burgess

Deena West

Denise Hargreaves

Erica Austen

Ian Whyborn

Jayne Arnold

Karen Milligan

Lyn Reid

Renae Rance

Ross Beckett

Thuriyya Ibrahim

Wayne Willey

Wesley Jacobs

Civic Centre Staff

Homecare Staff

BOILC Staff

Library Staff

Visitors Centre Staff

EVRC Staff

Community Services

Home and Community Care

Library and Information Services

Ranger Services

Recreation Services

Volunteer Management Services

Executive Manager Community Services

Rod Hilton

Community Services Team

Community Services

Community Services The Community Services Department provides an interface for members of the community to access and utilise the Shire’s facilities and services. Through the Community Services Department the Shire engages the community with the provision of an extensive library service, aged and disability programs, exposure to cultural initiatives, youth services, community events and the facilitation of physical activity programs and the provision of recreation facilities.

Ranger Services 2009/10 has seen some staff changes within Ranger Services, with Jason Rhodes resigning as Senior Ranger in November 2009, and Ian Whyborn taking up this position in December 2009. Rangers Leanne Shepherd and Dale Burgess also left us during the 2009/10 year, although we were fortunate to acquire the services of Trainee Ranger Wesley Jacobs in September 2009.

Telephone Enquiries

Rangers dealt with a total of 4,133 enquiries during the year, broken down as follows:

Animal Control Rangers conducted random patrols of all areas in the Shire for roaming dogs during the year including the rural town sites of Condingup and Gibson, resulting in 142 dog owners being

cautioned and 50 infringement notices being issued for various offences.

Illegal Camping Rangers conducted routine morning patrols of the townsite and surrounding areas resulting in 70 cautions being issued.

Litter Control

Rangers received 17 reports of illegally dumped rubbish during the year, investigations were carried out on each occasion. Rangers continued to conduct random patrols of the roads to the tip for unsecure loads.

Rod Hilton Executive Manager Community Services

2009-10 2008-09 2007-08

Dogs Impounded

390

416

479

Dogs Returned to Owners

179

149

179

Dogs Euthanized

61

106

99

Feral Cats Euthanized

25

41

24

Attended to Stray Livestock

43

43

43


...Ranger Services

Fire Control

Rangers inspected a total of 681 vacant blocks during the 2009-2010 fire season of which 62 reminder notices were sent out and 1 infringement notice issued for non compliance. Rangers requested one vacant block be cleared by the Shire for non compliance in a high risk area. The work was carried out and the owners have been charged accordingly.

Parking Control

Rangers conducted random patrols of all parking areas during the year resulting in 33 parking cautions and 4 infringements being issued for a range of offences.

Coastal Reserves

All Coastal Reserves continued to be occupied to their maximum capacity during the summer months with maintenance carried out on a weekly basis by Rangers. The Greater Sports Ground was again utilised this year as an overflow camping ground during Christmas, New Year and Easter due to Caravan Parks and Camping Grounds being full.

Local Laws Rangers conducted quarterly inspections of all verges and thoroughfares during the year resulting in 10 cautions and no infringement notices being issued for non compliance.

After Hours Service Rangers Emergency After Hours Service was very busy over the year. Rangers received a total of 958 afterhours calls during the year resulting in Rangers attending to 173 callouts.

Community Services Esperance Public Library

Loans

The Library loaned 132,651 items from July 2009 to June 2010.

Resources

The Library has over 25,000 items for loan comprising:

Books Talking Books on cassette or cd DVDs CD Roms Music CDs Magazines Comic books Jigsaws

Also available are newspapers, Council information, ABS information and a wide variety of pamphlets and brochures on a multitude of subjects.

Staff

The Library is staffed by one full-time professional Librarian and six part-time Customer Service Officers. In addition there are over a dozen Volunteers who assist with shelving, cleaning disks, children’s activities and newspaper indexing. The Esperance Library Friends (ELF) group, established in 2007 to support and promote the Library assist library staff with State Library Discard Book Sales, fundraising for Cancer Research through Australia’s Biggest Morning Tea events and Daffodil Day, promoting the library at the Esperance Show, and managing the Library’s own Discard Book Shop in the front Foyer area.


...Esperance Public Library

Services

The Library offers: Public access computers available for

Internet access, Word Processing, Scanning and other software uses

A public Fax service Inter-Library Loans to access items

from other libraries across the state, inter-state and sometimes overseas

Housebound Delivery service Community Information database Fun and informational workshops for

adults A Tax Help Program for low income

earners Playstations and PCs for Computer

Games in Teenage and Children’s Areas

A selection of Online Databases, such as Encyclopaedia Britannica

Children’s Activities Toddler Time Baby Bounce Rhymetime Storytime Holiday Activity Sessions Born to Read

2009/10 Highlights

National Science Week August 2009

This year’s theme was “Indiana Jones and the Quest for Knowledge” culminating in an Awesome Egypt Evening with special guest stars Indiana Jones and The Mummy, courtesy of the Esperance Theatre Guild. A variety of challenging activities during the night - The “Trail of Terror”, “Dangerous Digsite”, “Dungeon of Dread” and Monkey Brains Soup – provided plenty of entertainment and information for 40 young children during the two-hour session and they all received an Awesome Egypt Activity Pack to take home. The aim of the evening was to introduce children and their families to the wonders of Ancient Egypt and the science of archaeology by attracting families into the Library to show what is available at the Library and how learning can be fun.

Community Services

Adult Learners’ Week September 2009 An interesting programme of workshops around the theme of “Pastimes for Past –Times” was organized with the main event being Esperance’s own Antiques Roadshow – an Antiques and Collectables Night on Tuesday 1 September. People were invited to bring along a family heirloom and Paul Bowler, a Perth Antiques Dealer, appraised items and spoke about his passion for antiques and collecting. Paul has been in the antiques business for over twenty five years and has taken part in a variety of similar events for community groups, charities and even on television, and proved a very entertaining host and presenter and the evening was enjoyed by over 70 people, with many requests to repeat the event in the future. Two other workshops – Restoring Furniture and Simple Picture Framing were also popular.

The Library is on Facebook ! Libraries are all about people and how we can best help them find the information and resources that they need. Facebook is a great way to interact with people to let them know what we can offer them and to find out what they want from us! It is a quick and interactive way of communicating with existing customers as well as people who don’t use us now but may be persuaded to use us in the future. We a l s o h a v e a l i b r a r y w e b s i t e www.library.esperance.wa.gov.au where you can find out about our resources and services and use them to better advantage 24 hours a day!

National Science Week


Community Services ...Esperance Public Library

Seniors’ Week October 2009

This year the Esperance Public Library received a grant from the Council on the Ageing to present a positive, fun and enduring event for Seniors Week. This took the form of “glamour” photo sessions for Seniors – similar to the PixiFoto concept for babies and young children. Marni Topping, Library Customer Service Officer and professional photographer, took 2000 snaps of 70 seniors over a two-day period during the week. Some of the participants were quite “camera-shy” to begin with but soon relaxed under Marni’s pleasant and encouraging approach and the result was a plethora of truly inspiring colour and black and white photos of seniors of all ages and sexes enjoying the chance to create special memories for themselves and their families. The concept was received with overwhelming excitement and sessions booked out quickly as the general opinion was that it was a marvellous chance for older people to “glamourise” themselves and show that age is no barrier to being beautiful! Organizers and participants were unanimous in their praise for the event as it presented a very positive image of Seniors and also encouraged Seniors to visit the local Seniors Centre and see the marvellous variety of activities, events and programmes on offer that may encourage newer seniors to “call again”.

ELF Discard Book Shop

The Esperance Library Friends group have taken over the responsibility for maintaining and developing the Discard Bookshop. The library receives many generous donations of books and DVDs and those that are not suitable for library stock are sold at reasonable prices to raise money towards library resources and projects. Recently ELF agreed to put funds from discard sales towards funding the Better Beginnings early literacy programme that provides a free book and book bag to all newborns in the Esperance Shire.

Visitor Centre

Visitor Center Statistics Visitor Centre numbers 100,000 people Value of accommodation bookings for 2009/2010 $555,000 Value of tour and cruise bookings 2009/2010 $108,000 Booking commissions $79,500 The Visitor Centre has had a very busy year, particularly during peak times between Christmas 2009 and Easter 2010. Compared to the previous financial year, accommodation bookings have gone up 6.5%. Website statistics show 95,000 visits, with a majority originating from search engines. The page most visited was the accommodation search. Civic Centre tickets are now available from the Visitor Centre, and a new laptop was installed on the counter against the wall for this purpose, as the other two computers at the front are always busy with bus tickets and accommodation bookings. During off-peak times, Visitor Centre staff undertook familiarization tours of most aspects of visitor servicing, empowering staff to provide better-informed and superior service. The Visitor Centre was one of the finalists in the 2009 WA Tourism Awards.

Visitor Centre Staff Cheryl Bow and Stephanie Carpenter


Community Services Civic Centre

During the 2009/2010 financial year, the Esperance Civic Centre presented 14 shows, including two children’s shows and two shows outside of the Civic Centre (Driftwood 2010 in April at The Cannery and Mum’s Big Day Out in May at the Sound Shell). Over 6,700 tickets were sold to all shows at and presented by ECC and at The Bijou Theatre, including:

945 Concession Card and Seniors Card holders;

7 Companion Card holders; and 1,210 children.

The total figure of 6,700 represents a 22% increase on 2008/2009 ticket sales. 2009/2010 saw the Civic Centre also selling tickets from The Esperance Library and The Visitors Centre. Although only a small percentage of tickets have been sold through these alternative options, sales will increase as more people become aware of the options. Approximately 26% of all tickets purchased were purchased on line compared to approximately 20% in 2008/2009.

Civic Centre Income

Esperance Volunteer & Resource Centre

The 2009/10 year marked the tenth year of operation for the Volunteer Centre (EVRC), having officially opened in May 1999 with funding from the Federal Government, auspiced by the Shire of Esperance.

This funding model has remained fairly unchanged over the years, and the EVRC has expanded its scope of operation over the years by successfully attracting additional State funding, as well as ad-hoc grants and special project funding as they become available. The EVRC continues to operate as a one stop shop for everything to do with volunteering, servicing organisations looking for volunteers, through to individuals looking to volunteer through the referral service, as well as offering training to both volunteers and volunteer co-ordinators. Statistics for 2009/10 include: 283 potential volunteers assisted; 13 of whom classed themselves as having

a disability; 21 classed themselves as coming from a

CALD background; and 3 from an Aboriginal or Torres Strait

Islander background. The EVRC also ran a number of different training sessions with a total of 276 people attending. The EVRC continues to offer training that is of both general interest and more specifically geared to volunteering. The topics are usually those that have been requested by community members and volunteer Co-ordinators. The EVRC organised a number of events to celebrate the work of volunteers in Esperance through the annual Thank a Volunteer Day on 5 December and National Volunteer Week in May.

Celebrating 10 years of the EVRC


Community Services ...Esperance Volunteer &

Resource Centre Thank a Volunteer Day was a particular success, and in partnership with FESA we were able to attract a whole new element to the event - the family. As the day fell on a weekend, the EVRC put on a breakfast and invited volunteers to attend with their families. The day coincided with a visit from the CEO of FESA, which brought the local brigades out in force. Over 100 people attended the mornings events. The focus for this coming year will be sustainability, as both our streams of funding are due to finish at the end of June 2011. The EVRC will be lobbying for the continuation of these funding elements, and the extension of their terms in order to enable future planning. The EVRC is in the process of planning our 2 main events for 2010/11, being thank a Volunteer Day on 5 December and National Volunteer Week in May 2011. 2011 is gearing up to be a special year in the Volunteering World Calendar as it is International Year of Volunteering +10, so as they say, watch this space!

Recreation & Youth Services

Greater Sports Ground Update Progress has been made on the redevelopment of the GSG. Key initiatives include: In November 2009 a decision was

made to limit the redevelopment on the GSG to the existing reserve between Black Street and Brazier Street

Approximately $472,000 Royalties for Regions funding was allocated to the redevelopment of the GSG including:

$30,000 on the Tennis Club upgrade;

$104,578 on the Sports Stadium upgrade; and

A future allocation of $337,599 to priority projects in the next financial year.

A study was commenced to look at the feasibility of connecting a proposed 4 court Indoor Stadium to the existing Basketball Stadium.

Funding Partnerships With Sports Clubs Two facilities development projects were funded this financial year by the Department for Sport and Recreation (DSR) through the CSRFF, the associated sporting clubs and the Shire. The Esperance Basketball Association

was funded to replace backboard structures, backboards and rings. The total project cost was $62,254 with a CSRFF Grant of $20,751.

The Ports Football Club was funded for a wicket on the Ports oval. Total project cost $12,000 and included $4,000 CSRFF and a Shire contribution of $2,500.

Physical Activity Plan

The Shire received $50,000 to implement the Active Esperance Physical Activity Plan in 2009/10. This project is been undertaken in partnership with WA Country Health, the GP Network, the Department for Sport and Recreation, Active After Schools (Australian Sports Commission), Department of Planning, Disabilities Services Commission and Curtin Vocational Training and Education Centre. Key initiatives include: Implementation of the Esperance

Sporting Network/Club Development Project (funded by Department of Sports and Recreation, Esperance District Recreation Association and the Shire).

Physical Activity programs to prevent chronic illness including Active Kids and Lighten Up and expansion of the BOILC Seniors program to include Tia Chi and Beginner Pilates.

Collaborative delivery Pit Stop with WA Country Health.

Collaborative delivery of an Esperance Walking Strategy including 10,000 Steps, a Walking Web Page and the training walk leaders through the Heart Foundation.

Development of a supplementary Physical Activity Plan for Ravensthorpe.

Community Services ...Recreation & Youth Services

Bay of Isles Leisure Centre

The BOILC has had a successful year and there has been an increase in both the quality and range of programs and services offered. In alignment with national and state trends there has been an increasing focus on programs that address wellness, managing obesity and developing a healthy lifestyle. This is in addition to providing the regular group fitness programs and services. Swim School numbers have levelled out this year after 4 years of significant growth. This growth has reflected the population trends - Esperance has experienced a greater than average number of births over the past 4 years. The Centre has completed a restructure providing better opportunity for staff career development and to be able to accommodate the changing focus of the Centre. Financially the Centre performed well with an income of $717,023 and expenditure of $898,604. These figures will be the benchmark for efficiency reviews as 2007/08 and 2008/09 were anomalous due to the pool closure and repairs.

BOILC Performance 2005-2010

Disability Services The key outcomes for the 2009/10 year were: On the 29 March 2010 a town tour was

conducted with a group of local quadriplegics to inspect access improvements and to identify any additional barriers. As a consequence of the town tour a works plan was developed which included the construction of footpath crossovers, the installation of fillets to reduce kerb edge lips, widening of several ACROD Bays, removal and replacement of raised pavers to remove trip hazards, and construction of a footpath to link the foreshore pathway at James St to an easy access toilet block.

All ACROD Bays were repainted. The foreshore footpath at James St was

relocated to remove the risk of pedestrians walking behind vehicles in the car park; this had the added advantage of removing the need for wheelchairs and scooters to negotiate the kerbs into and from the car park.

A ramp was installed to improve access into the community agencies offices in Lotteries House.

A new website has been implemented which includes provision for members of the public to report problems on line.

Ongoing replacement of concrete slab footpaths with paved or asphalt.

Dissemination of the Plan

The Disability Access and Inclusion Plan is a public document, which is available on request from Council’s Administration Offices or Library. It can be translated into alternative formats for large print, audio or Braille and is also available electronically and via email upon request. The Plan is also available to download from the Sh i r e o f E spe r ance web s i t e a t www.esperance.wa.gov.au. Enquiries: Rod Hilton, Executive Manager Community Services

0

200000

400000

600000

800000

1000000

1200000

1400000

2005/06 2006/07 2007/08 2008/9 2009/10

Income Expenditure Deficit


Alan Gilpin

Annette Harbron

Brendon Dowell

Beverley Hoey Chantal Spittle

Chrystal Warr David Giles Elise Harris Jeff Hoey

Kathryn Little

Kyle Hodgkinson

Nicholas Kleinig Paul Clifton Philip Jones

Priscilla Davies Prue McTaggart

Rob Suter

Building Services

Environmental Services

Health Services

Planning Services

Executive Manager Development Services

Richard Hindley

Development Services Team

Development Services

Development Services

Local Planning Scheme No. 23 was gazetted on Friday 19 February 2010 and the Local Planning Strategy was endorsed by the Western Australian Planning Commission and became effective on 4 February 2010. The finalisation of the Scheme and Strategy represented the culmination of almost 8 years of work and represents a new direction for planning within the Shire. A significant number of development applications were received during the 2009/10 year with 380 development applications being received along with 37 subdivision applications being commented on. Significant applications received in this period included the Horizon Power Depot on Sims Street and the expansion of the ARG rail yard and the associated Sims Street overpass. Significant inroads have been made into the implementation of a Geographic In format ion System (GIS) . The improvement both in the range of data that is displayed as well as the quality of the data available is enabling officers to more fully and efficiently assess development applications.

Development Application Approvals

Town Planning

Richard Hindley Executive Manager Development Services

Applications Received

Applications Determined

Development Applications

2009/2010 380 366

Subdivisions

2009/2010 37 31

Home Occupations

2009/2010 5 2

Home Occupation Renewals

2009/2010 19 N/A


Development Services Building Projects

During the 2009/10 year the Shire undertook a number of new building projects and additions to existing buildings. Key improvements include: Internal fit out of the New Maritime

Museum extension (including the rewiring of the electrical cabling within the main Museum Building), totalling $472,000;

Refurbishment to the Indoor Sports Stadium and the Noel White Pavilion playing surfaces to improve the longevity of the playing surfaces ($88,000); and

Completion of the Old Hospital Building relocation including disabled access and refurbishment of the electrical, plumbing and grey water systems ($34,420).

Building Maintenance This programme is continuing to undergo a fundamental shift in its direction and in the approach to maintaining the Shires built assets after a report outlining the present condition of the buildings was received by Council. The report also outlined various recommendations to the processes and funding to facilitate improvement and longevity in current building assets. Council allocated approximately $715,000 in 2009/10 for building asset maintenance. Major projects included: the second stage of upgrading the

ventilation system within the Administration building;

Refurbishment of staff housing at Condingup, Grass Patch and the Airport Caretakers residence;

Civic centre reception room air conditioning upgraded, plus rekeying of the building into the master key system and re-varnishing of all the timberwork with the auditorium;

Repainting of the eastern end of the Bay of Isle Leisure Centre;

Airport terminal modified for security reasons and replacement of motors and sensor units to self opening doors;

Carpets throughout the library were replaced; and the

Police Sergeants Building within the Museum Park Precinct was repainted and minor repairs made prior to handover to the new tenant.

Building Services During 2009/10 the building industry within the Shire of Esperance continued to show resistance to the downturn in the industry in other parts of the country by upholding the number of total approvals issued, demonstrating consistent growth. Residential developments accounted for the majority of building work (as depicted in the table overleaf), with residential dwelling approvals accounting for 38% of the total building activity and 73% of the value. In total, 157 residential dwellings and alterations were approved. Commercial and industrial accounted for 38 approvals with 9% of total building activity and 18% of the value. The majority of the remaining approvals were for outbuildings, accounting for 45% of the building activity but only accounting for 7% of the value. In total, 416 building licences were issued by the Shire of Esperance, worth approximately $44 million.

Development Services ...Building Services

Health & Environmental Services

Preventative health measures are essential to minimising the impact of trauma and disease within our community. Environmental Health Services contributes to these measures through monitoring of such things as the supply of safe food and water, accommodation standards, investigating communicable disease, ensuring the implementation of appropriate waste disposal and pollution control measures. Environmental Health Services has continued to implement inspection programs in the areas of food, accommodation, public buildings, hair dressing, beauticians and skin penetration.

The information system project is ongoing, with the majority of all Environmental Health work being captured and recorded. Refinement and improvements in this system is an ongoing process. With new requirements for Food Businesses in Western Australia, Environmental Health has been ensuring operators are aware of the new regulations and the impact these may have on their operations. To date this has involved a process of advising food businesses of the new legislation, addressing operator concerns whilst ensuring that all food business are moving toward compliance with the new statutory structures. Environmental Health Services has also been involved in the development of works approval documentation for the Wylie Bay Liquid Waste Facility. It is envisaged that this documentation will be submitted to the Department of Environment and Conservation in late 2010. Similarly Environmental Health Services are to be actively involved in the environmental improvement plan for the Myrup truckwash facility. All construction activity associated with the planned sustainable beach access projects, that is Observatory Beach, Eleven Mile, and Castletown Quays were completed during the reporting period. For all of these endeavours, the identified challenges will be in the timely delivery of these projects.

Breakdown of Building Approvals

2008/2009 2009/2010

DESCRIPTION NO VALUE ($) NO VALUE ($)

New Single Dwellings/Duplexes

103 26,573,941 107 27,896,837

Alter to Dwellings 48 2,474,436 50 4,100,323

Approval Certificates Dwellings

(Retrospective Approval)

Industrial, Commercial 17 7,662,117 20 5,188,463

Alter to Industrial, Commercial

22 1,946,736 18 2,639,430

Approval Certificates Industrial, Commercial


Outbuildings 112 1,517,168 170 2,959,437

Alter to Outbuildings 99 1,429,048 18 187,900

Approval Certificates Outbuilding


Sundry Structures (Retaining walls, Fencing, etc)

35 3,447,699 26 306,361

Sundry Structures (Retaining walls, Fencing, etc) (Retrospective Approval)

Demolition 2 29,500 5 562,500

Pools 2 64,500

Total 438 45,080645 416 43,905,751

Engineering Services

Asset Management

Asset Planning Services

Mapping, Survey and Design

Technical and Administration Support

Executive Manager Engineering Services

Gavin Harris

Engineering Services Team

Adam Millar Alison Cull

Andrew Murray Bill Lance Bill Parry

Bruce Warren Catherine Millar Craig Shearer

David Klingberg David Spencer Dennis Kelly

Garry Lamour Georgia Ryan

Graham Dellaca Jennifer Parry John Dinning

Mark Haberecht Mary Parker Neil Williams

Noeline McNamara Peter Cull

Scott McKenzie Field Staff Personnel

Road Asset and Expenditure

The effective and efficient management of the Shire's $540,000,000 asset base is critical to the success and economic well-being of the region. As part of Council's ongoing commitment towards maintaining the local road network, extensive funds were spent on maintaining and upgrading the road asset in 2009/10 as detailed below:

Significant grant funds were received and enabled the following projects to be undertaken.

Roads to Recovery 2009/10 represents the last year of funding under the Roads to Recovery funding program. The Federal Government has committed to another four years of funding from 2009/10 onwards. During the 2009/10 financial year, the majority of these funds were spent on those projects detailed below:

Engineering Services

State Road Funds In addition to the Roads to Recovery Funding, which is from the Federal Government, the Shire also receives funding from the State Government for roads, usually from the Sate Blackspot and Regional Road Group Funding programs. Blackspot grants are for safety improvement initiatives on local roads and Council has recently focused on utilising these funds for the staggering of uncontrolled 4 way intersections in rural areas, which was identified as a priority in Council's Strategic Plan. Blackspot projects are funded 2/3 State and 1/3 Local Government. During 2009/10, the following Blackspot projects were successfully applied for and constructed:

Gavin Harris Executive Manager Engineering Services

Shire of Esperance Road Statistics

Roads Length (km) Area (m2)

Unformed 508.15 2,917,413

Formed (Track) 225.52 1,981,885

Paved (Gravel/Limestone) 3,021.67 21,010,750

Sealed 1014.22 6,878,387

Total Built Roads 4769.55 32,788,420

Total Number of Roads 715

Town Works $298,499

Asphalt overlays on various town roads

Rural Reseals $54,859 Various reseals

Kendall Road $23,215 Construct 380m section of road

Fisheries Road $567,220

Reconstruct various sections of road

Eleven Mile

Beach Road

$125,533 Reconstruct 1km section of road

Backmans Road $598,145

Reconstruct 4.4km section of road

Coolinup Road $75,361


Hobby & Kumarl Road Intersection $38,648

Staggered Inter-section

Burnside & Kumarl Road Intersection $43,788


Doney Road Intersec-tion $15,816


...State Road Funds Regional Road Group Funding is allocated by the State Government to the nine Regional Road Groups in the State using a weighted formula split between population and road network lengths. Esperance received an allocation of $1.383m split between the following road projects:

Council Funds

Rural Works A variety of rural road works, including gravel resheeting, resealing, reconstruction and floodway improvements, were undertaken to the value of $2.435m on various rural roads.

Town Works Asphalt footpaths were constructed in various locations throughout the town site to a total value of $367,250. Various drainage works were completed throughout the townsite to the value of $418,075, including the installation of a Gross Pollutant Trap on the Phyllis Street drainage line to reduce pollution into the ocean from the outfall. Also major upgrade works took place on James Street to upgrade the pipe size of a major town stormwater outfall. Landscaping works were undertaken in the CBD with annual planting being replaced with natives in roundabouts and medium strips.

Foreshore Renourishment The foreshore renourishment program continues to provide protection to areas of the foreshore that are prone to damage from wave and storm action. Expenditure of $153,449 was spent on foreshore renourishment during the year, with the Department of Transport contributing $115,086 towards this work.

Engineering Services Esperance Aerodrome

It was another busy year for the airport, with passenger numbers around 44,000 for the third year in a row. There were no major security incidents, and the airport continued to run in a financially viable manner. The Shire (with assistance from the Regional Airports Development Scheme) undertook a $2m upgrade of Runway 11/29. This involved a 50mm asphalt overlay along the full 1,800m runway. The asphalt overlay increases the structural strength of the runway, and allows the introduction of a jet service, if the airline decides to offer this. However, prior to any introduction of a jet service, the requisite security screening infrastructure would need to be installed and manned. The Shire also increased the capacity of the carpark by over 100 bays. The long term parking will be moved from the current location to the new carpark in the near future.

The Shire continued to improve the waste and recycling service for year under review. The Shire received over 40,000 cubic metres of landfill, and sent almost 1,000 tonnes of recycling to Perth and Adelaide for reprocessing. Late in the financial year, the Shire commenced accepting E-Waste as well. The Future Waste Strategy was in the process of being developed for consideration by Council. This strategy looks at the advantages and disadvantages of three options for the future waste disposal in Esperance, being: a new Landfill; a Lined Cell at the current landfill; and a third bin at each residence to take putrescible waste. The Strategy was not completed prior to the end of the financial year, and Council has requested further consideration for the Lined Cell option. With regard to recycling, the price being obtained for the baled recycled product continues to be quite low. This causes a strain on the finances of the Shire, with the funds being generated by the waste disposal being used to subsidise the recycling operations.

Cascade Road $535,314 Various sections recon-structed and resealed

Fisheries Road $176,694 Various sections recon-structed with $285,760 car-ried forward into 2009/10.

Cape Le Grand Road $296,939


Merrivale Road $468,028 Various sections recon-structed Twilight Beach

Road $78,923 Reseal 5.5km section

Parmango Road $62,299 Reseal 4km section

Waste Management

Executive Manager Corporate Services

Darren Kennedy

Corporate Services Team

Alison Golebiowski

Allison Guild

Andrew Fletcher

Annette Slade

Anthea Campbell

Avnish Shah

Beth O’Callaghan

Cathy Murray

Cherie Bugg

David Scheer

Erin Pilmer

Heather O’Brien

Karen Rushton

Kerryl Ross

Nathan Abbott

Sarah Beckett

Sean Kenny

Audit and Grant Management

Communications

Financial Services

Information Technology

Records Management

Statutory Reporting

Corporate Services

Corporate Services Corporate Services is responsible for financial management, administration, rating, information technology, police licensing, records management, and governance. Considerable activity continues to occur in the local government sphere across Australia to address the issue of financial sustainability. The need for local government reform, improved asset management and the development of robust long term financial plans is well overdue. Legislative changes are required to give this area the impetus that is so desperately needed and it is hoped that with the support of the Federal Government, this will be forthcoming in the near future. The Shire of Esperance is progressively working towards implementing changes to its financial and management practices in accordance with the clear direction set in the Local Government National Sustainability Framework. This framework has recently been agreed to by all states and ultimately local governments across Australia will need to demonstrate satisfactory compliance with the key components.

Information Technology The Shire’s new and vastly improved website went live in April. This site will continue to be developed to meet the increasing demands for this communication medium. During the year, the Shire’s Geographical Information System (GIS) was re-implemented. This has resulted in immediate productivity benefits and identified significant uses for this technology that had not been previously explored. Currently, due diligence is being performed on a proposal to move the Shire’s information technology infrastructure to a managed service environment. This will provide the Shire with many advantages including complete disaster and business continuity protection.

Statutory Reports

Records Management This report has been published in accordance with the requirements of the State Records Act 2000 and the Shire of Esperance Record Keeping Plan. The Plan details the control, retention and disposal of the Shire’s public records. The Plan was endorsed by the State Records Commission for a five year term in 2004. It was reviewed in 2009, where discrepancies identified have had timeframes allocated to improve them for further review in late 2010. The Shire of Esperance is committed to meeting the requirements of the State Records Act 2000. Under the Record Keeping Plan, the Shire maintains record keeping training and induction programs to ensure that Shire employee’s are informed of their responsibilities in regard to record keeping. This program is subject to periodic review to improve its effectiveness and efficiency.

Darren Kennedy Executive Manager Corporate Services

Corporate Services ...Statutory Reports Employees Remuneration

Pursuant to Regulation 19B of the Local Government (Administration) Regulation 1996, the following table sets out, in bands of $10,000, the number of Shire employees entitled to an annual salary of $100,000 or more:

National Competition Policy

The Competition Principles Agreement is an Inter-government Agreement between the Commonwealth and State/Territory Governments that sets out how government wi l l apply National Competition Policy principles to public sector organisations within their jurisdiction. The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition Principles Agreement require local government to report annually as to the implementation, application and effects of the Competition Policy. The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting. These are: 1. Competitive Neutrality; 2. Structural Review of Public Monopolies; and 3. Legislative Review. In accordance with the requirements of the National Competition Policy, the Shire of Esperance makes the following disclosures for 2009/10.

Competitive Neutrality

The objective of competitive neutrality is the elimination of resource allocation distortions arising out of local government ownership of significant business activities. The Shire of Esperance has previously assessed its operations and considers that it has one business activity that would be classed as significant under the current guidelines. Also the Shire of Esperance does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise. The number of activities to which

competitive neutrality principles have been applied in the reporting period is: Zero (0).

The number of activities to which

competitive neutrality principles have been considered but not applied in the reporting period is: Zero (0).

During the reporting period the Shire of Esperance did not become aware of any allegations of non-compliance with the competitive neutrality principles made by a private entity against the Shire.

Structural Review of Public Monopolies In relation to Structural review of public monopolies, the Shire of Esperance discloses the following: Structural reform principles have been

applied to the following number of activities in the reporting period: Zero (0); and

Structural reform principles have been

considered but not applied to the following number of activities in the reporting period: Zero (0).

As no structural reform has been applied to any activities, the review requirements of principal SR.3 of Clause 7 of the Competition Policy Statement have not been undertaken.

Salary Band ($) 2010 2009 2008

$100,000 - $109,999 2 - 2

$150,000 - $159,999 - 1 1

$160,000 - $169,999 1 - -


Corporate Services ...Statutory Reports

Legislative Review Parties to the National Competition Policy package agreed that legislation should not restrict competition unless: The benefits of the restriction to the

community as a whole outweigh the costs; and

The objectives of the legislation can

only be achieved by restricting competition.

Accordingly, the Shire of Esperance is required to implement a systematic review of all of its existing legislation to determine whether there are any direct or indirect effects on competition. In relation to a Legislative Review the Shire of Esperance discloses that: As at the reporting date the number

of by-laws and Local Laws which have been reviewed and reformed as a result of any legislative review is: Zero (0); and

As at the reporting date the number

of by-laws and Local Laws which the application of any legislative review principles were considered but not applied is: Zero (0).

Plan for the Future

Section 5.56 of the Local Government Act 1995 (the Act) requires a local government to plan for the future of the district. Furthermore, Section 5.53(e) of the Act requires local governments to provide an overview of the Plan for the Future in its Annual Report, including major initiatives that are proposed to commence or continue in the following financial year. The Shire’s Plan for the Future was reviewed during 2009/10 and nominates the following initiatives as projects of key strategic importance:

Esperance Foreshore Protection and

Enhancement Project; Greater Sports Ground Redevelopment; Tanker Jetty Maintenance; Development of the Shark Lake

Industrial Park and the Flinders residential subdivision; and

Development of the Port Access Corridor.

The Plan also identifies the imperatives of Asset Management and Information & Communication Technologies as key operational objectives for the Shire for the period of the Plan. A copy of the Plan is available from the Administration Office or from the Shire website www.esperance.wa.gov.au.


TABLE OF CONTENTS

PageStatement by Chief Executive Officer i

Independent Audit Report ii

Statement of Comprehensive Income by Nature or Type 1Statement of Comprehensive Income by Program 2Statement of Financial Position 3Statement of Changes in Equity 4Statement of Cash Flows 5Rate Setting Statement 6

Notes to and Forming Part of the Financial Report NoteSignificant Accounting Policies 1 7Revenues and Expenses 2 19Cash and Cash Equivalents 3 24Trade and Other Receivables 4 25Inventories 5 25Property, Plant and Equipment 6 26Infrastructure 7 28Trade and Other Payables 8 30Long Term Borrowings 9 30Provisions 10 30Reserves - Asset Revaluation 11 30Reserves - Cash Backed 12 31Notes to the Cash Flow Statement 13 37Capital and Leasing Commitments 14 38Contingent Liabilities 15 38Joint Venture and Major Land Transaction 16 39Assets by Function and Activity 17 42Financial Ratios 18 42Trust Funds 19 43Disposal of Assets 20 43Information on Borrowings 21 44Rating Information 22 46Discounts, Incentives, Concessions and Write-offs 23 47Interest Charges and Instalments 24 47Fees and Charges 25 48Grant Revenue 26 48Employee Numbers 27 48Councillors' Remuneration 28 48

Major Land Transactions 29 49Major Trading Undertakings 30 50Financial Risk Management 31 52

SHIRE OF ESPERANCEWindich Street, Esperance Western Australia, 6450

Tel: (08) 9071 0666, Fax: (08) 9071 0600 Email: shire @esperance.wa.gov.auwww.esperance.wa.gov.au

Annual Financial ReportFor the year ended 30th June 2010

Table of Contents

2009-10

LOCAL GOVERNMENT ACT 1995LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the Shire of Esperance being the annual financial report andother information for the financial year ended 30th June 2010 are in my opinion properly drawnup to present fairly the financial position of the Shire of Esperance at 30th June 2010 and theresults of the operations for the financial year then ended in accordance with the AustralianAccounting Standards and comply with the provisions of the Local Government Act 1995 andthe regulations under that Act.

Signed on the day of 2010.

__________________________MJ (Mal) OsborneChief Executive Officer


Statement by Chief Executive Officer

2009-10


Statement by Chief Executive Officer

2009-10


Audit Report

2009-10

NOTE 2010 2010 2009Actual Budget Actual

$ $ $REVENUERates 22 10,429,482 10,417,500 9,771,142Operating Grants, Subsidies and Contributions 26 9,764,754 5,758,757 8,502,309Fees and Charges 25 6,096,909 5,139,145 5,090,137Interest Earnings 2(a) 671,393 442,915 559,339

26,962,538 21,758,317 23,922,927

EXPENSESEmployee Costs (10,100,726) (10,458,470) (9,867,129) Materials and Contracts (7,407,096) (5,285,100) (5,761,262) Utility Charges (677,561) (630,043) (437,752) Depreciation on Non-Current Assets 2(a) (8,571,490) (8,066,110) (8,200,348) Interest Expenses 2(a) (42,153) (37,066) (45,478) Insurance Expenses (excludes W.Comp) (419,596) (417,552) (351,326) Other Expenditure (651,795) (519,015) (794,872)

(27,870,417) (25,413,356) (25,458,167)

Sub-total (907,879) (3,655,039) (1,535,240)

Non-Operating Grants, Subsidies and Contributions 26 4,317,431 3,856,634 6,301,177Profit on Asset Disposals 20 1,692,418 867,865 65,536Loss on Asset Disposal 20 (279,360) (90,000) (258,463)

NET RESULT 4,822,610 979,460 4,573,010

Other Comprehensive Income - - -

Total Other Comprehensive Income - - -

TOTAL COMPREHENSIVE INCOME 4,822,610 979,460 4,573,010

This statement is to be read in conjunction with the accompanying notes.


Statement of Comprehensive Income by Nature & Type

2009-10


$ $ $REVENUEGovernance 961,138 177,010 233,782General Purpose Funding 14,829,628 13,563,879 16,726,156Law, Order, Public Safety 3,474,118 287,281 655,003Health 188,209 224,060 208,843Education and Welfare 2,222,016 2,063,131 2,210,681Community Amenities 2,336,452 1,975,870 2,108,992Recreation and Culture 1,928,940 1,754,356 1,827,507Transport 4,565,025 4,750,285 5,113,112Economic Services 734,203 402,170 732,545Other Property and Services 1,732,658 1,284,774 473,019

2 (a) 32,972,387 26,482,816 30,289,640

EXPENSES EXCLUDING FINANCE COSTSGovernance (998,909) (998,270) (978,673) General Purpose Funding (237,555) (242,000) (325,313) Law, Order, Public Safety (3,237,069) (1,106,691) (1,079,774) Health (405,851) (437,642) (414,513) Education and Welfare (2,355,935) (2,371,323) (2,256,093) Community Amenities (3,150,366) (3,134,606) (3,180,082) Recreation & Culture (5,179,376) (4,983,291) (5,264,711) Transport (10,337,456) (9,795,034) (10,331,396) Economic Services (1,049,819) (1,700,577) (892,395) Other Property and Services (1,155,288) (696,856) (948,202)

2 (a) (28,107,624) (25,466,290) (25,671,152)

FINANCE COSTSRecreation & Culture (39,727) (37,066) (41,621) Other Property and Services (2,426) - (3,857)

2 (a) (42,153) (37,066) (45,478)

NET RESULT 4,822,610 979,460 4,573,010

Other Comprehensive Income - - -

Total Other Comprehensive Income - - -

TOTAL COMPREHENSIVE INCOME 4,822,610 979,460 4,573,010



Statement of Comprehensive Income by Program

2009-10

NOTE 2010 2009Actual Actual

$ $CURRENT ASSETSCash and Cash Equivalents 3 12,106,660 10,866,014Trade and Other Receivables 4 2,328,054 1,723,375Inventories 5 2,019,155 1,892,177TOTAL CURRENT ASSETS 16,453,869 14,481,566

NON-CURRENT ASSETSOther Receivables 4 626,318 539,471Inventories 5 8,193,683 7,442,958Property, Plant and Equipment 6 35,241,724 35,107,620Infrastructure 7 194,123,838 191,457,932TOTAL NON-CURRENT ASSETS 238,185,563 234,547,981

TOTAL ASSETS 254,639,432 249,029,547

CURRENT LIABILITIESTrade and Other Payables 8 1,554,252 1,292,256Long Term Borrowings 9 7,888,240 7,442,240Provisions 10 1,410,512 1,307,643TOTAL CURRENT LIABILITIES 10,853,004 10,042,139

NON-CURRENT LIABILITIESLong Term Borrowings 9 464,939 504,813Provisions 10 157,573 141,289TOTAL NON-CURRENT LIABILITIES 622,512 646,102

TOTAL LIABILITIES 11,475,516 10,688,241

NET ASSETS 243,163,916 238,341,306

EQUITYRetained Surplus 127,415,662 123,784,070Reserves - Cash Backed 12 11,363,104 10,172,086Reserves - Asset Revaluation 11 104,385,150 104,385,150TOTAL EQUITY 243,163,916 238,341,306


2009-10


Statement of Financial Position

RESERVES ASSETRETAINED CASH REVALUATION TOTAL

NOTE SURPLUS BACKED RESERVE EQUITY$ $ $ $

Balance as at 1 July 2008 123,001,770 6,381,376 104,385,150 233,768,296

Net Result 4,573,010 - - 4,573,010

Total Other Comprehensive Income - - - -

Reserve Transfers (3,790,710) 3,790,710 - -

Balance as at 30 June 2009 123,784,070 10,172,086 104,385,150 238,341,306

Net Result 4,822,610 - - 4,822,610

Total Other Comprehensive Income - - - -

Reserve Transfers (1,191,018) 1,191,018 - -

Balance as at 30 June 2010 127,415,662 11,363,104 104,385,150 243,163,916


2009-10


Statement of Changes in Equity


Cash Flows From Operating Activities $ $ $ReceiptsRates 10,403,800 10,303,900 9,648,808Operating Grants, Subsidies and Contributions 9,137,820 5,972,357 8,785,758Fees and Charges 5,888,391 5,323,965 5,344,151Interest Earnings 671,269 442,915 560,744Goods and Services Tax 2,289,314 2,100,000 2,294,255Other Revenue - - -

28,390,594 24,143,137 26,633,716PaymentsEmployee Costs (9,930,738) (10,287,525) (9,784,426)Materials and Contracts (7,299,402) (5,257,377) (6,085,465)Utility Charges (683,240) (630,043) (428,386)Insurance Expenses (419,596) (417,552) (351,326)Interest Expenses (39,783) (37,066) (41,965)Goods and Services Tax (2,075,811) (2,100,000) (2,213,025)Other Expenditure (651,795) (519,015) (794,872)

(21,100,365) (19,248,578) (19,699,465)Net Cash Provided By (Used In)Operating Activities 13(b) 7,290,229 4,894,559 6,934,251

Cash Flows from Investing ActivitiesPayments for Development of Land Held for Resale (1,664,525) (1,139,500) (7,019,405)Payments for Purchase of Property, Plant & Equipment (3,202,730) (2,785,802) (3,253,940)Payments for Construction of Infrastructure (9,018,587) (10,781,672) (6,124,006)Advances to Community Groups (30,000) - (120,000)Proceeds from Self Supporting Loans 110,418 - 81,425Payments for Purchase of Investments - - - Non-Operating Grants, Subsidies and Contributions used for the Development of Assets 4,317,431 3,856,634 6,301,177Proceeds from Sale of Assets 3,032,284 3,723,500 513,816Proceeds from Advances - - - Proceeds from Sale of Investments - - - Net Cash Provided By (Used In)Investing Activities (6,455,709) (7,126,840) (9,620,933)

Cash Flows from Financing ActivitiesRepayment of Debentures (1,060,418) (3,077,729) (83,006)Repayment of Finance Leases - - - Proceeds from New Debentures 1,466,544 1,376,795 6,889,511Net Cash Provided By (Used In)Financing Activities 406,126 (1,700,934) 6,806,505

Net Increase (Decrease) in Cash Held 1,240,646 (3,933,215) 4,119,823Cash at Beginning of Year 10,866,014 10,866,014 6,746,191Cash and Cash Equivalents at the End of the Year 13(a) 12,106,660 6,932,799 10,866,014


2009-10


Statement of Cash Flows

2010 2010 2009NOTE Actual Budget Actual

$ $ $REVENUEGovernance 961,138 177,010 233,782General Purpose Funding 4,400,146 3,146,379 6,955,014Law, Order, Public Safety 3,474,118 287,281 655,003Health 188,209 224,060 208,843Education and Welfare 2,222,016 2,063,131 2,210,681Community Amenities 2,336,452 1,975,870 2,108,992Recreation and Culture 1,928,940 1,754,356 1,827,507Transport 4,565,025 4,750,285 5,113,112Economic Services 734,203 402,170 732,545Other Property and Services 1,732,658 1,284,774 473,019

22,542,905 16,065,316 20,518,498EXPENSESGovernance (998,909) (998,270) (978,673)General Purpose Funding (237,555) (242,000) (325,313)Law, Order, Public Safety (3,237,069) (1,106,691) (1,079,774)Health (405,851) (437,642) (414,513)Education and Welfare (2,355,935) (2,371,323) (2,256,093)Community Amenities (3,150,366) (3,134,606) (3,180,082)Recreation & Culture (5,219,103) (5,020,357) (5,306,332)Transport (10,337,456) (9,795,034) (10,331,396)Economic Services (1,049,819) (1,700,577) (892,395)Other Property and Services (1,157,714) (696,856) (952,059)

(28,149,777) (25,503,356) (25,716,630)Adjustments for Cash Budget Requirements:

Non-Cash Expenditure and Revenue

(Profit)/Loss on Asset Disposals (1,413,058) (777,865) 192,927Movement in Provisions and Accruals 101,269 153,500 113,482Movement in Deferred Pensioner Rates (non-current) (126,721) - (5,607)Depreciation and Amortisation on Assets 8,571,490 8,066,110 8,200,348Capital Expenditure and Revenue

Purchase Land Held for Resale (1,664,525) (1,139,500) (7,019,404)Purchase Land and Buildings (946,859) (649,524) (826,580)Purchase Infrastructure Assets - Roads (5,780,521) (6,994,033) (5,178,623)Purchase Infrastructure Assets - Other (3,238,066) (3,787,639) (945,383)Purchase Plant and Equipment (2,204,580) (2,067,298) (2,331,469)Purchase Furniture and Equipment (51,291) (68,980) (95,891)Purchase of Investments - - - Proceeds from Disposal of Investments - - - Proceeds from Disposal of Assets 3,032,284 3,723,500 513,816Repayment of Debentures (1,060,418) (3,077,729) (83,006)Proceeds from New Debentures 1,466,544 1,376,794 6,889,511Advances to Community Groups (30,000) - (120,000)Self-Supporting Loan Principal Income 110,418 77,729 81,429Transfers to Reserves (Restricted Assets) (5,221,403) (1,171,715) (5,983,985)Transfers from Reserves (Restricted Assets) 4,030,385 4,711,001 2,193,275

Surplus/(Deficit) July 1 B/Fwd 643,801 651,309 475,951Surplus/(Deficit) June 30 C/Fwd 1,041,359 5,120 643,801Amount Required to be Raised from Rates 22 (10,429,482) (10,417,500) (9,771,142)


2009-10


Rate Setting Statement

1. SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies which have been adopted in the preparation of this financialreport are:

(a) Basis of PreparationThe financial report is a general purpose financial report which has been prepared in accordancewith Australian Accounting Standards (as they apply to local governments and not-for-profit entities),other mandatory professional reporting requirements and the Local Government Act 1995 (as amended)and accompanying regulations (as amended).

The report has also been prepared on the accrual basis under the convention of historical cost accounting asmodified by the accounting treatment relating to the revaluation of financial assets and liabilities at fair valuethrough profit and loss and certain classes of non-current assets.

Critical Accounting Estimates

(b) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functions have beenincluded in the financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balancesbetween those funds (for example, loans and transfers between Funds) have been eliminated.

All monies held in the Trust Fund are excluded from the financial statements, but a separatestatement of those monies appears at Note 19 to this financial report.

(c) Goods and Services TaxIn accordance with recommended practice, revenues, expenses and assets capitalised are stated netof any GST recoverable. Receivables and payables in the statement of financial position are statedinclusive of applicable GST.

(d) Cash and Cash EquivalentsCash and cash equivalents in the statement of financial position comprise cash at bank and in hand andshort-term deposits with an original maturity of three months or less that are readily convertible toknown amounts of cash and which are subject to an insignificant risk of changes in value.

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash andcash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts areincluded as short-term borrowings in current liabilities on the statement of financial position.

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The results of this experience and other factors combine to form the basis of making judgements about carrying values of assets and liabilities not readily apparent from other sources. Actual results may differ from these estimates.

2009-10


Notes to and forming part of the Financial Report

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Trade and Other Receivables

(f) InventoriesGeneralInventories are valued at the lower of cost and net realisable value. Net realisable value is the estimatedselling price in the ordinary course of business less the estimated costs of completion and the estimatedcosts necessary to make the sale. Inventories held for trading are classified as current even if not expectedto be realised in the next 12 months.

Land Held for ResaleLand purchased for development and/or resale is valued at the lower of cost and net realisablevalue. Cost includes the cost of acquisition, development and interest incurred on the financingof that land during its development. Interest and holding charges incurred after development iscomplete are recognised as expenses.

Revenue arising from the sale of property is recognised in the statement of comprehensive income as atthe time of signing a binding contract of sale.

Land held for resale is classified as current except where it is held as non-current based on Council's intentionto release for sale.

(g) Fixed AssetsInitial RecognitionAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given asconsideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominalconsideration, cost is determined as fair value at the date of acquisition. The cost of non-current assetsconstructed includes the cost of all materials, direct labour and variable and fixed overheads.

RevaluationCertain asset classes may be revalued on a regular basis such that the carying values are not materiallydifferent from fair value. For infrastructure and other asset classes where no active market exists, fairvalue is determined to be the current replacement cost of an asset less, where applicable, accumulateddepreciation calculated on a basis to reflect the already consumed or expired future economic benefits.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less any subsequentaccumulated depreciation and accumulated impairment losses, are to be revalued with sufficient regularity toensure the carrying amount does not differ significantly from that determined using fair value at balance date.

Trade receivables, which generally have 30 - 90 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less any allowance for uncollectible amounts.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.

2009-10


Notes to and forming part of the Financial Report

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(g) Fixed Assets (Continued)

Land under Roads

(h) Depreciation of Non-Current AssetsAll non-current assets having a limited useful life are separately and systematically depreciatedover their useful lives in a manner which reflects the consumption of the future economic benefitsembodied in those assets.

Depreciation is recognised on a straight-line basis, using rates which are reviewed each reportingperiod. Major depreciation periods are:

Buildings 20 to 50 yearsFurniture and Equipment 5 to 20 yearsMotor Vehicles 3 yearsRoad Making Plant 5 to 10 yearsOther Plant and Equipment 3 to 15 yearsInfrastructure

Roads and Streets - Construction Road Base 50 yearsRoads and Streets - Bituminous Seal 25 yearsFootpaths - slab 10 to 30 yearsParking Facilities 15 to 16 yearsWater Supply Piping and Drainage Systems 40 yearsParks and Gardens 20 yearsAirport 35 to 36 years

In Western Australia, all land under roads is Crown Land, the responsibility for managing which, is vested in the local government.

Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. This accords with the treatment available in Australian Accounting Standard AASB1051 -Land Under Roads and the fact Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.

In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.

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