ANNUAL REPORT 2015/16 - Shire of Dandaragan report 2015/16 page 2 of 108 table of contents...

This document is available in alternative formats, such as Braille, large print, digital (on disk or by email) upon request, and on the Shire’s website at http://www.dandaragan.wa.gov.au

[2015 / 2016 ANNUAL REPORT] Jurien Bay Administration Centre | 69 Bashford Street | JURIEN BAY WA 6516

PO Box 676 | JURIEN BAY WA 6516 | Phone 08 9652 0800 | Fax 08 9652 1310 | Email: [email protected] | Website: www.dandaragan.wa.gov.au | Office Hours: 8.00

am - 5.00 pm Monday to Friday

http://www.dandaragan.wa.gov.au/

ANNUAL REPORT 2015/16

Page 1 of 108


Page 2 of 108

TABLE OF CONTENTS

COUNCILLORS .................................................................................................. 3

STAFF AND REMUNERATION ........................................................................ 5

PRESIDENT’S REPORT .................................................................................... 6

CHIEF EXECUTIVE OFFICERS REPORT ......................................................... 8

DEPUTY CHIEF EXECUTIVE OFFICER REPORT ......................................... 11

EXECUTIVE MANAGER INFRASTRUCTURE REPORT .............................. 20

EXECUTIVE MANAGER CORPORATE & COMMUNITY SERVICES REPORT ............................................................................................................ 34

COMPETITIVE NEUTRALITY......................................................................... 45

NATIONAL COMPETITION POLICY & STATE RECORDS ACT ................ 46

AUDIT REPORT ............................................................................................... 47

FINANCIAL REPORT ....................................................................................... 49


Page 3 of 108

COUNCILLORS

Cr Leslee Holmes - President

PO Box 245 CERVANTES WA 6511 Ph: 0408 419 468

Email: [email protected] Expiry of Term: 2019

Cr Darren Slyns - Deputy President PO Box 869 JURIEN BAY WA 6516

Ph: 0407 420 126 Email: [email protected]

Expiry of Term: 2017

Cr Wayne Gibson PO Box 717 JURIEN BAY WA 6516



Cr Kaye McGlew PO Box 63 DANDARAGAN WA 6507



Cr Mike Sheppard PO Box 390 JURIEN BAY WA 6516



Cr Judy Kulisa PO Box 854 JURIEN BAY WA 6516



mailto:[email protected]







Page 4 of 108

COUNCILLORS continued…

C r Dahlia Richardson PO Box 7 BADGINGARRA WA 6521



Cr Peter Scharf PO Box 298 JURIEN BAY WA 6516



RETIRED COUNCILLORS

Cr Tim Bailey 197 Zendora Road JURIEN BAY WA 6516

Cr Lawrie Short PO Box 36 DANDARAGAN WA 6507

Cr David Kent PO Box 371 JURIEN BAY WA 6516




Page 5 of 108

STAFF AND REMUNERATION

TONY NOTTLE Chief Executive Officer

IAN RENNIE Deputy Chief Executive Officer

SCOTT CLAYTON Executive Manager Corporate &

Community Services

GARRICK YANDLE Executive Manager Infrastructure

SALARY RANGE 2016

$100,000 - $109,999 1

$110,000 - $119,999 2

$120,000 - $129,999 0

$130,000 - $139,999 0

$140,000 - $149,999 0

$150,000 - $159,999 0

$160,000 - $169,999 1

Full time equivalent employees 48


Page 6 of 108

PRESIDENT’S REPORT 2015 / 2016

Having only been elected to the position of Shire President in October 2015, I certainly thank my fellow Councillors for their support in representing them as their leader. I also take this opportunity to sincerely thank Councillor Wayne Gibson for his dedication and commitment to the President’s role during the previous 2.5 years. He certainly led the Council during a busy period for the Shire where major Infrastructure projects were planned and completed. His leadership and compassion were greatly appreciated by all. Over the previous year our Shire has seen an ongoing commitment to the delivery of key infrastructure projects including: Opening and operation of the Jurien Bay Visitors Information and Civic

Centre Completion of the sealed link between Brand Highway and Indian Ocean

Drive along Mimegarra Road Completion of the Jurien Bay Infill Sewer Project Stages 1A & 1B Commencement of the Jurien Bay Foreshore Extension of Dobbyn Park Council is well aware of the need for small business and tourism to thrive within our Shire while exploiting our comparative advantages such as our relatively close proximity to Perth, diverse region and stunning natural assets. The private industry has also seen the benefits of investing in our Shire with key projects commencing which include: Commencement of the multi-million dollar upgrade of the Cervantes

Pinnacles Caravan Park Significant upgrade of the Jurien Bay Tourist Park Construction of the new Sandpiper Motel has commenced Carpenter Beef continue to work towards the completion of the Cataby

Abattoir Construction and operation of AAA Egg Free Range Egg Farm at Hill

River Upgrade and redevelopment of the Lobster Shack, Cervantes Our Council continues to plan for our future with each elected member taking on specific portfolios within the Shire. Key portfolios include aged care, tourism development, agribusiness, roads and key infrastructure, community facilities, recreation and engagement.


Page 7 of 108

I would like to thank my fellow Councillors, and in particular my Deputy President, Cr Darren Slyns, for their support and commitment to Council and the community. I also would like to thank our Chief Executive Officer, Mr Tony Nottle, and the staff for their guidance and contribution to the Shire of Dandaragan throughout the year in review. And finally, I would like to thank you, the community for your ongoing interest in the towns and the Shire that we live in and encourage you all to continue your involvement in the groups, organisations and businesses within our area. I commend the 2015 / 2016 Annual Report to you.

Cr Leslee Holmes PRESIDENT

Member of Moore, Mr Shane Love MLA, presents Caitlin Porteous with the Young Citizen of the Year Award 2015


Page 8 of 108

CHIEF EXECUTIVE OFFICER’S REPORT 2015 / 2016

Last year, the Shire of Dandaragan undertook its biggest infrastructure project ever, with the construction of the Jurien Bay Visitors Information and Civic Centre (JBVICC). Following on from this significant milestone saw the completion of the Jurien Bay Infill Sewer Project which was officially opened in June this year. This project was a result of the SuperTowns planning and funding that will assist in the further development of Jurien Bay as a sub-regional centre for our region. I certainly take this opportunity to thank all of those involved with the development and delivery of this project, in particular our Executive Manager of Infrastructure Garrick Yandle, who managed the project from start to finish. The Ordinary Election in October 2015 saw an expansion of Councillor representation across the Shire and an injection of new ideas and enthusiasm into the Council Chamber. The new Council also elected its first female President in Councillor Leslee Holmes as well as new Deputy President Councillor Darren Slyns. I congratulate both Councillors Holmes and Slyns on their new role at the Dandaragan Shire Council. Under this new leadership team, Council undertook its major review of the Shire’s Community Strategic Plan “in house” and held a number of community consultation sessions out in the community. The result is a finalised realistic plan that will guide the Shire over the next 10 years. The community provided essential feedback into what is important to them, what the community needed, but also with a realistic viewpoint about what we can afford. The community established Key Priorities for the Shire of Dandaragan which included:

• Ownership of Badgingarra Research Station and development of a viable regional waste facility

• Representation on Council Planning and land availability for health precinct and further residential development

• Planning for the development of aged care facilities close to medical services

• Actively engage with Federal and State Governments on their respective Roads and Mobile Blackspot Programs

• Provide and manage road and bridge networks for safe and efficient vehicle movement

• Lobby for improved mobile phone capacity of existing towers • Advocate the viable use of aquifers in agricultural and horticultural areas


Page 9 of 108

• Tourism and marketing with a focus on promotion and product development based on natural assets

The Shire has continued to expand its Community Services through a variety of ways including the continuation of the Leeuwin Scholarship, Community Grants Scheme, hosting of the Regional Club Development Officer Scheme and youth initiatives. The 2016 “Spray the Grey” was an outstanding success with locals, regular visitors and holiday makers all enjoying the festivities and youth focused activities. Our Shire directly employs over 60 people and approximately a further 20 people employed indirectly through regular contracts for services. I take this opportunity to thank all of those at the Shire of Dandaragan for the continued commitment to providing services to our communities. Staffing

Our staffing has remained relatively stable in comparison with previous years. This is quite pleasing considering the increased workload with statutory changes and legislative requirements, as well as the increased level of infrastructure projects that have been taken on “in-house”. As part of our Strategic Community Plan, Goal 5 (Build a proactive leading local government) has a key performance indicator of staff turnover rate. The past four years have shown an improvement in this area. Our senior management team has continued to remain stable with Ian Rennie (DCEO/Development Services), Scott Clayton (Corporate & Community

0%

5%

10%

15%

20%

25%

30%

35%

40%

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Employee Turnover %


Page 10 of 108

Services) and Garrick Yandle (Infrastructure Services), leading our teams with dedication, commitment and passion within the Shire structure. Budget Initiatives As with previous years, Council continues to implement a number of initiatives to assist in the growth and development of the Shire. Some of these included: Discount for users of the Jurien Bay Airstrip (JBA) – total discount $28,018 Free use of the JBVICC for educational purposes

Budget Incentive / Initiative Value of discount

Landing Fees waived to encourage use of the JBA

$28,018

Central West Men’s Shed (Cervantes) waiver of annual rates

$3,024

Waiver of charges to JBDHS for use of Education / Conference Centre

$6,220

I certainly encourage you all to read the Annual Report for 2015/16 and reflect on another successful year for the Shire of Dandaragan.

Tony Nottle CHIEF EXECUTIVE OFFICER

Royalties for Regions Jurien Bay Sewerage Project (Stage 1B)


Page 11 of 108

DEPUTY CHIEF EXECUTIVE OFFICER REPORT 2015 / 2016

The areas covered by this report include the following: Planning Building Environmental Health Emergency Services Ranger Services

There has been a number of staff who have carried out various duties within Development Services during the year as follows: Deputy Chief Executive Officer, Mr Ian Rennie Manager Planning, Mr David Chidlow Planning Officer, Mrs Barbara Macaulay ceased her employment with the

Shire in July 2015. Manager Building Services, Mr Will George Principal Environmental Health Officer, Mr Dennis Gillam was employed in

this role from April 2015 to January 2016. Following Dennis’ leaving, the Shire contracted Mr Bass Sahar to full this role temporarily until such time as the recruitment process was finalised and in May 2016 Mr Felix Neuweiler commenced in this position.

Community Emergency Services Coordinator, Mr Matt Dadd Senior Ranger, Mr Terry Sims Ranger, Ms Rosalyn Edwards Council Secretary / Personal Assistant, Mrs Robyn Headland Development Services Administration Officer, Ms Trevena Taylor

The following is a brief summary of some of the projects undertaken and issues faced in the Development Services department..

BUILDING STATISTICS 2015 / 2016

SUMMARY BUILDING STATISTICS 2015 / 2016

Class 1 Residences 52 $15,363,632

Outbuildings / Garages 39 1,168,710

Patio / Pergola / Carports 23 176,782

Swimming Pools 4 $81,750


Page 12 of 108

Additions 10 $313,264

Office / Commercial Sheds etc 7 $3,285,000

Fit-outs / Occupancy 5 $60,200

Fences 7 $55,170

Re-roof / Lean-to / Verandahs 8 $65,950

Storage Sheds / Units / Temporary Camps 3 $2,921,750

Communication Towers 1 $21,750

Miscellaneous 1 $500

Total $23,514,458

52

39

23

4

10

7

5

7 8

3

1 1

CONSTRUCTION TYPE YEAR 2015-2016 Class 1 Residences

Outbuildings / Garages

Patio / Pergola / Carports

Swimming Pools

Additions

Office / Commercial Sheds etc

Fit-outs / Occupancy

Fences

Re-roof / Lean-to / Verandahs

Storage Sheds / Units / Temporary Camps

Communication Towers

Miscellaneous


Page 13 of 108

Council Decision 18%

Delegated Authourity 82%

Discretionary 0%

PLANNING DECISIONS 2015 - 2016

Council Decision

Delegated Authourity

Discretionary


Page 14 of 108

BUILDING REPORT The items of the Capital Works Budget Sheet for the 2015/2016 financial year have involved a number of project completions and ongoing project commitments. The Jurien Community Recreation Centre re-roof and toilet upgrade project was delayed by difficulties in finding price competitive and available tiling contractors. The Shire of Dandaragan Administration building extensions and refurbishment work was completed relatively smoothly and almost within the financial year period with a short overlap from the suppliers to complete their installation work. The Jurien Community Recreation Centre kitchen refurbishment, in line with Council’s Policy for kitchen refurbishment, was completed satisfactorily and has been in operation for normal community use since completion of the work. There were a reduced number of budget carry-overs from the last financial year into the current period which has removed quite a few obstacles to completing the current budgeted work schedules.


Page 15 of 108

Community education following the introduction of Bushfire Attack Level assessments (BAL) introduced by the Department of Planning and the Department of Fire and Emergency Services (DFES), has progressed well and community preparedness to provide the required assessments has become well understood. Just as for the new building legislation introduction, the adjustment to the builder and general community in understanding of the need for a Fire Intensity projection, determined for each individual site resulting from the BAL assessment, will be an ongoing community education concern for Shire Development Services staff into the future. BUSHFIRE PLANNING The State Government introduced bushfire planning reforms which were announced in 2015. The package of landuse planning reform documents include the: Gazetted State Planning Policy No. 3.7: Planning in Bushfire Prone Areas

(SPP 3.7); Guidelines for Planning in Bushfire Prone Areas (the Guidelines), Planning Bulletin No 111/2015 Planning in Bushfire Prone Areas; and Fact Sheets to assist in understanding the implementation of these

reforms. Both the Manager Planning Services and Manager Building Services completed the Bushfire Attack Level (BAL) Level One in order to assess development applications in bushfire prone Areas. MAJOR PLANNING APPROVALS During the 2015 / 2016 Financial Year, Council approved or reapproved a number of major Development Applications including the following: Two storey motel (31 room) development on Lot 103 Cnr Murray Street

and Sandpiper Street, Jurien Bay. Renewal of planning approval for the establishment of the Joanna Plains

Peaker Project on Lot 3907 Brand Highway, Cataby. Planning approval for chalets and all of Stage One development for the

RAC Cervantes Holiday Park Lot 229 Aragon Street. Planning approval for small scale Workforce Accommodation

(backpackers) comprising two transportable units at Lot 2991 Woodbine Road, Regans Ford.

SUBDIVISION Council advised the Western Australian Planning Commission conditional support for the proposed application for amalgamation of Lot No’s 8, 9, 10, 11, 362 Madrid Street, Cervantes


Page 16 of 108

COASTAL HAZARD RISK MANAGEMENT AND ADAPTION PLANNING The project undertaken aims to assist the Shires of Gingin and Dandaragan to develop risk mitigation strategies for coastal settlements that are or are predicted to come under pressure from coastal development and change associated with coastal erosion and inundation, and to integrate these strategies into relevant planning instruments. The draft Dandaragan Coastal Hazard Risk Management and Adaption Planning report was presented to Council and referred to the Department of Planning for comment. The Department of Planning requested further information and consultation be undertaken, recognising that the report is breaking new ground and evolving as knowledge increases. Progress on the finalisation of the report continues and it is expected to be completed in the 2016/2017 financial year. LOCAL PLANNING SCHEME NO 7, AMENDMENT NO 28 Scheme Amendment No 28 dealt with merging Local Planning Scheme No.7 provisions with the Planning and Development (Local Planning Schemes) Amendment Regulations 2015. The amendment was determined to be a simple amendment and did not require community consultation. Council resolved to adopt the Amendment and to request Final Approval from the Minister for Planning. ROAD CLOSURES Council agreed to close an area of Talavera Road Reserve (18m wide and 300m in length) on the southern side of Reserve 30838, for amalgamation into the Reserve after having considered all submissions received. The approval of the Minister for Lands was requested in accordance with Section 58 of the Land Administration Act 1997. Council agreed to permanently close an area of Road Reserve on the corner of Aragon Street and Talavera Road that generally comprises the existing Memorial Park for creation of a new Reserve vested to the Shire of Dandaragan for the purposes of “Memorial Park” after having considered all submissions received. The approval of the Minister for Lands was requested in accordance with Section 58 of the Land Administration Act 1997. POLICY AMENDMENTS Council amended the policy relating to Outbuildings and Temporary Accommodation in Rural Residential and Special Use – Rural Development Zones to permit outbuildings up to 300m2 to be approved under delegation if


Page 17 of 108

there are no objections from neighbours and some minor amendments to definitions. LOCAL DEVELOPMENT PLAN Council advertised the proposed Local Development Plan for Lot 62 Roberts Street, Jurien Bay by publishing a notice of the proposed plan in a newspaper circulating in the Scheme area and on the Council website, including a statement that submissions may be made to the local government by 12 August 2016. DISABILITY SERVICES REPORT

Council continues to be conscious of the need to provide accessible facilities and events. In accordance with the Shire of Dandaragan’s 2012 - 2017 Disability Access and Inclusion Plan (DAIP) the Shire ensures that new buildings and landscaping comply with the latest standards. Existing Shire facilities are gradually upgraded to ensure that they can be enjoyed by everyone. The DAIP is regularly reviewed by staff and listed actions are progressively implemented. ENVIRONMENTAL HEALTH The Shire undertakes a range of actions designed to maintain and protect public health. During the year, more than 200 risk assessments of caravan parks, public pools, recreational waters, food businesses and public buildings were carried out to ensure legislative requirements were being adhered to. In addition, the Shire responded to nearly 100 service requests on a range of issues including noise, pests, food, waste water and other general health issues. EMERGENCY SERVICES The 2015/2016 financial year provided a busy year for the Volunteer Bushfire Brigades within the Shire of Dandaragan. Local volunteers from the Shire of Dandaragan responded to 15 reported fires. One of the most significant fires was the Meadows Road fire that started on the evening of 26 January 2016 (Australia Day). This fire burnt out over 28,000 Hectares and caused the evacuation of the Grey Community and closed the Indian Ocean Drive for a period of four days. Local and external fire fighters spent 12 days on the fire ground before it was declared safe. Local bush fire volunteers also provided assistance with fires across the Midwest Gascoyne and Southwest of the State over the past 12 months. Two deployments to the Shire of Carnarvon were required over a 10 day period. The large Shire of Waroona fire saw two separate deployments to form Strike


Page 18 of 108

Teams. This included four 4x4 Broadacre fire appliances and five fast attack fire appliances and a total of 18 personnel within each deployment. The financial year saw the Local Government Grants Scheme provide funding to complete the internal fitout of the Badgingarra Fire Station and electrical wiring of the Canover Fire Station, totalling $36,000. Bushfire brigade volunteers have really embraced fire training provided by Department of Fire and Emergency Services, with a strong contingent attending a wide range of strategic training to better assist their brigades and support the Shire of Dandaragan and the community. RANGER SERVICES

The 2015/2016 rural aerial firebreak inspections were carried out with the assistance of Chief Bushfire Control Officer, Mr Richard Allen and Fire Control Officer, Mr Bruce Cook. Follow up on ground inspections were carried out by Shire Rangers. A number of infringements were issued along with a number of work orders which were issued as part of an education program. The Shire is confident this education program will continue to assist in compliance next year.

LOCALITY NO. OF INFRINGEMENTS

Residential (Jurien Bay) 47

Residential (Cervantes) 11

Residential (Dandaragan) 3

Special Use (Jurien Bay) 15

Rural-Residential (Jurien Bay) 8

Rural (Dandaragan) 2

TOTAL 86

LOCALITY NO. OF WORK ORDERS Jurien Bay (Urban) 5

Jurien Bay (Rural-Residential) 34

Cervantes (Urban) 13

Cervantes (Rural) 1

Dandaragan (Rural) 10

Dandaragan (Rural-Residential) 2

Badgingarra (Rural) 4

Regans Ford (Rural) 2

TOTAL 71


Page 19 of 108

During the summer months of November through to February the main activity for Ranger Services is fire control. The months following reflect an increase in the amount of tourists in the Shire and the focus for Ranger Services moved toward customer education and monitoring camping areas. One area of particular emphasis has been the use of off road vehicles and dog control. The Easter and Anzac weekends saw an increase in off road vehicle queries.

Dogs have not been a major concern in the Shire. Rangers have attended a small number of dog attacks which were resolved through education of the owners and conciliation with both parties. Owners were happy to comply with fences and confinement of their dogs. It has become apparent that there are some pet owners who allow their dogs to wander at large early in the day and Rangers have now commenced early morning patrols to deter this practice. It was apparent over the summer period off road vehicles are a large problem in particular for the communities of Cervantes and Jurien Bay over the holiday weekends. By putting up extra signage we hope the town sites of Cervantes and Jurien will have minimal traffic and offenders in the future. Whilst the Shire of Dandaragan has some beautiful camping areas it is apparent that more policing and control is required. The grants that the shire has received to redevelop Sandy Cape with additional toilet blocks, shelters and barbeques has helped, also the free camping areas within the shire

Ian Rennie DEPUTY CHIEF EXECUTIVE OFFICER


Page 20 of 108

EXECUTIVE MANAGER INFRASTRUCTURE REPORT 2015 / 2016 The Infrastructure Department is responsible for all operational staff, with crews based in Jurien Bay and Dandaragan. These crews are responsible for the maintenance and development of the Shire’s roads, footpaths, storm water infrastructure, parks and gardens, sporting fields, and the four landfill sites. GENERAL WORKS Crews have been busy throughout the year carrying out regular maintenance of the Shire’s Infrastructure assets. The Jurien Bay Crew is responsible for all aspects associated with Parks and Gardens within each of the four Shire towns, as well as the urban streets. This includes maintenance of the foreshore areas and swales within Beachridge. The Dandaragan Crew is responsible for all aspects associated with road maintenance including maintenance grading, roadside spraying and slashing, culvert cleaning, and pavement repairs. The crew operates two maintenance graders and a road patrol truck which manage road maintenance across gravel roads, sealed roads and town streets within the Shire. Where necessary the crews share equipment and resources. Where required the Shire also uses local contractors from our tender panel to undertake tasks surplus to our resources or requiring a specific skillset. PERSONNEL The 2015 / 2016 financial year saw a consolidation of the recent management position changes within the Infrastructure Department. The infrastructure leadership positions are as follows: Executive Manager Infrastructure – Garrick Yandle Jurien Bay Operations Supervisor (Parks and Gardens) – Troy Wright Dandaragan Operations Supervisor (Works) – Paul Woolstencroft Engineering Technical Officer – James Morrison (departed in September

2015) Infrastructure Asset Coordinator – Angus Padfield (commenced in January

2016) Reticulation Fitter – Geoff Beale Leading Hand (Parks and Gardens) – Shaun Lyons Leading Hand (Final Trim Grader Driver) – William Sturges (was on long

service leave for 6 months from January 2016 – June 2016, during this time his role was undertaken by a contractor with assistance from various other


Page 21 of 108

crew members as required). Mechanic – David Taylor. The Infrastructure team also continues to manage the four landfill facilities within the Shire through a combination of staff and local contractors. As part of our continuing commitment to staff training and development, the Infrastructure staff undertook a number of training courses throughout the year. These included: Troy Wright and Paul Woolstencroft - WA Local Government Supervisors

Association Conference – August 2015 Shaun Lyons - Playground Inspection Course - September 2015 Bush Fire training - November 2015 First Aid Courses – February 2016 LGIS “Working Well” – general staff – March 2016 LGIS “Operational Leadership” - Supervisors and Coordinators – March

2016 LGIS “At the Coal Face” – All staff – March 2016 LGIS Workplace Behaviours – April 2016 The 2015 / 2016 financial year saw the final year of two trainee positions within the Infrastructure team. This included a trainee based out of each depot, with one focused on Horticulture and the other focused on Civil Construction. Both of these positions were nominally for a period of 2 years. Haydn Mackail successfully completed his Certificate III in Horticulture in January 2016. He has now progressed into a full role as a General Hand on staff in the Parks and Gardens team. David Sims-Lynch completed a Certificate III in Civil Construction in September 2015 and parted ways with the Shire following his completion of the course. CAPITAL WORKS PROJECTS - GENERAL The following section provides a summary of Capital Projects undertaken by the Infrastructure team in 2015/16. 1. I70001 - Jurien Bay Sewerage Project – Stages 1A and 1B The Jurien Bay Sewerage Stage 1 project construction commenced in June 2015 with construction completed in December 2015. Following this commissioning of the system took place over a number of months with the official opening of the project taking place in June 2016. The total funding for the project was approximately $5,618,901, exclusive of GST. The sources of this funding can be summarised as follows:


Page 22 of 108

FUNDING COMMENTS SuperTowns $ 3,694,850 Secured Shire $ 300,000 Supertowns interest WC DCWA PS 7 Diversion $ 220,000 Estimate from WC WC DN300 Sewer 600m $ 342,000 Estimate from WC RFR Grant $ 1,062,051 Confirmed February 2015 REVISED TOTAL FUNDING $ 5,618,901 Revised Project Budget

Stage 1 of the project consists of a new Pump Station and Pressure Main, as well as Infill Sewer. This will service areas east of Bashford Street including: Civic precinct Jurien Bay Police Station Jurien Bay District High School Health precinct Residential areas in Hamersley, Whitfield, Batt and Bayliss Streets. Key components of the project were as follows:

Practical Completion achieved 4 December 2015. Contractors commenced demobilisation 4 December 2015. Final walk through inspection 9 December 2015. Commissioning successfully completed 31 March 2016, prior to

correspondence from Water Corporation for official handover. Handover completed late May 2016. Official opening occurred on Friday, 24 June 2016 with Member for Moore,

Mr Shane Love, MLA and other key stakeholders in the project attending Shire continued to monitor and manage dust suppression once contractors

demobilised from site. Initial stages of construction came in approximately $800K under budget. CEO and Executive Manager Infrastructure (EMI) investigated possible

extensions to Infill Sewerage with consultant and Water Corporation and the Design and Cost estimate was finalised mid July 2016.

2. 270055 - Bashford Street Upgrade The Concept Design for a potential future Bashford Street Upgrade was completed by Cardno in February 2014 and presented Council. The design was reviewed by the Infrastructure team, with Council feedback presented to the consultant. The Concept design was revised and was presented at a Community Workshop in February 2015. The Concept Design was endorsed by Council in March 2015. The Infrastructure team has continued to work with Cardno regarding detailed design, which is expected to be completed during early 2017. Currently the Shire does not have any funding for the whole construction


Page 23 of 108

works of the project however potential funding sources will be pursued as the design progresses. Completing the detailed design will provide greater opportunities towards obtaining funding for the project. Small components of the project that were completed in the 2015 / 2016 financial year include: Dual Use Path from Dryandra Boulevard to Lesueur Drive Dual Use Path from Lindsay Street to Cook Street Dual Use Path from Whitfield Road to Nineteenth Avenue Small components of the project have been budgeted for in the 2016 / 2017 budget and are expected to be completed in the next financial year, these include: Dual Use Path from Roberts Street to White Street adjacent to the Caravan

Park. Dual Use Path from Batt Street to Whitfield Road adjacent to the property

boundaries.

3. I20079 - Foreshore Redevelopment The Infrastructure team continued to work on the planning and construction procurement for the Jurien Bay Foreshore Redevelopment. Construction commenced in April 2016 with completion expected early 2017. Key components of the project include: Clearing Permit received November 2015. EMI issued a series of Request for Quotes (RFQ) to undertake the works

as small scale packages with a series of specialised sub-contractors, sourced locally where possible rather than going to full tender.

Irrigation bores were installed early April 2016. Water Storage Tanks were installed May 2016. Earthworks and clearing commenced early May 2016. Fencing and Traffic Management onsite during construction. Upcoming works in the 2016 / 17 financial year will include:

Installation of irrigation pipework Topsoil preparation Turf installation Drainage installation Landscaping at jetty precinct Landscaping and car park upgrade at Cook Street toilets Street furniture installation

4. I20064 - Jurien Bay Entry Statements

Submissions were sought from the public for the design of new entry statements for the township of Jurien Bay. Submissions were received in


Page 24 of 108

December 2014 and advertised for public comment during January 2015. The submissions were presented at a Community Workshop in February 2015. The preferred design submission provided by ICAN was endorsed by Council in March 2015. The Infrastructure team continued to work with ICAN regarding detailed design and costs. Construction was completed in early 2016.

Contractor Little Rhino Designs was appointed to progress design through

to construction. Fabrication commenced in May 2016. Installation was completed in September 2016.

5. I20046 - Beachridge Planter Boxes

Work continued on the staged renewal of the Beachridge planter boxes. This has entailed the infill of the old tree box areas located in the park strips throughout Beachridge, where trees were causing pavement damage. The Infrastructure team is progressively filling in the areas with asphalt each year.

Construction commenced November 2015. Construction completed in June 2016.

6. I80001 - Baudin Park Playground Replacement

One of the Shire’s most popular playgrounds aka “Pirate Park” located in Baudin Park, Jurien Bay, had suffered significant structural damage in the previous years. Options were investigated to fix the damaged components, however the company who supplied the original playground no longer exists and parts were not available. The decision was made in line with the Shire’s Playground Replacement Plan to remove the old playground and install a new one. Key features of this project were:

To retain the Pirate Ship / Boat theme. Adventure Plus was commissioned to supply and install the replacement

playground. Removal of old playground took place 14 June 2016. Installation of new playground was completed in June 2016.

7. CCTV at Jetty Car Park

Project completed mid-September 2015.

8. Footpath Bashford Street (Lindsay Street to Cook Street) Works completed December 2015. Included an additional connection to Bashford Street crossover near Cook

Street. Included an additional connection through Harding Park between Lindsay

Street and Lesueur Drive.


Page 25 of 108

9. I10041 - Turquoise Path Realignment of sand affected path commenced in October 2015. Asphalt completed December 2016.

10. I30034 - Cervantes Waste Facility Fence Completed September 2015

11. I20078 - Jurien Bay Cricket Net Completed early October 2015.

12 I10043 - Footpath Bashford Street (19th Ave to Whitfield Rd Funded through Aged Friendly Communities Grant and completed in

April 2016 Shire staff are to remove old redundant footpath in late 2016.

13. I10042 - Footpath Indian Ocean Drive (Lesueur Dve to Dryandra Bvd) Funded through Aged Friendly Communities Grant and completed in

April 2016

14. I30035 - RSL Car Park Completed May 2016. CAPITAL WORKS PROJECTS - ROADS Rural Roads

Seal Renewal - funded through Regional Road Group [RRG]

1. RRG027 - Mimegarra Road The Shire was fortunate to receive $5M of State Initiatives funding from the WA State Government for the upgrade of Mimegarra / Meadows Roads. This entailed upgrading some 25km of a Type 3 gravel road to a Type 6 sealed road. Construction of the Meadows Road section took place in late 2014. This included pavement preparation with 150mm of gravel road base being imported and prepared along the 12km section, with the two coat seal being undertaken in December 2014. The Shire continues to liaise with Iluka regarding their planned works at the Brand Highway end of Mimegarra Road. Works were completed by Shire staff with a combination of local sub-contractors for specific components of the project. A summary of the 2015/16 works is as follows:

Clearing took place August 2015. Bulk earthworks, realignment and pavement preparation took place

October to December 2015.


Page 26 of 108

Final pavement preparation took place from March to April 2016. First coat primer seal completed late April 2016. Intersection Asphalt at Brand Highway completed early May 2016. Second coat seal to be undertaken December 2016.

2. MUR856 - Jurien East Road

Upgrade from Brand Highway (SLK 0) to Cockleshell Gully Road (SLK 24)

Approximately 24km to be done in stages over 3 years. Survey undertaken March / April 2016 Design commenced May 2016 Clearing requirements under investigation, Maia Environmental

undertook initial survey early May 2016. Initial vegetation management completed March 2016. Full clearing for widening to commence once Clearing Permit

received. Culverts procurement to commence once design complete. Major earthworks, pavement construction and seal widening to be

undertaken in 2016 / 2017 Budget. Gravel Resheets – predominantly funded through Municipal Funds

1. MGR049 - Goonderdoo Road Gravel Resheet commenced June 2016 and completed July 2016.

2. MGR015 - Agaton Road Gravel Resheet scheduled for June / July 2016.

3. RRG002 - Dandaragan Road Pavement reconstruction and widening. SLK 51.2 – 54.7. First coat primerseal completed February 2016. Second coat seal to be undertaken December 2016 funded through

2016 / 2017 projects.

4. MGR034 - Kayanaba Road Gravel Resheet completed August 2015. SLK 0 – 4.

5. MGR019 - Coalara Road Gravel Resheet completed September 2015. SLK 18.6 – 22.6

6. RTR127 - Sandy Cape Road Gravel Resheet completed September 2015. SLK 2.0 – 4.0.


Page 27 of 108

7. MGR016 - Waddi Road Gravel Resheet completed May 2016. SLK 6.4 – 9.0.

8. MGR047 - Cantabilling Road

Gravel Resheet completed May 2016. SLK 22.5 – 26.5. Issues with Declared Rare Flora meant a section could not be

completed. Urban Roads (funded through Roads to Recovery [RTR])

1. RTR901 - Cervantes Drainage

Aragon Street Stage 1 – Completed. Aragon Street Stage 2 – TBA. Weston and Lang – completed June 2016.

2. RTR252 - Ocean View Parade – Jurien Bay Heights

Works completed 9 January 2016. SLK 0 – 2.0

3. RTR117 - Meagher Drive – Badgingarra

Works completed 8 January 2015. Full length approximately 2km.

4. RTR205 - Lesueur Drive Between Osprey Close and Ward Street completed December 2015 Between Ward Street and Shearwater Drive completed April 2016.

5. RTR066 - Hamersley Street Awarded at December Council Meeting to WCP Civil. Works completed April 2016. Between Batt Street and Bayliss Street.

6. RTR107 - Corunna Road – Cervantes Awarded at December Council Meeting to WCP Civil. Works completed April 2016. Completed between Talavera Road and Ronsard Park.

7. RTR127 - Sandy Cape Road $130K funds to be transferred from Jurien East Road to Sandy Cape

Road. 2.0km of pavement construction and primerseal. SLK 0 – 2.0. First coat primerseal completed April 2016.


Page 28 of 108

PARKS & GARDENS The Parks and Gardens team and specific contractors continue to maintain all assets in each of the 4 towns within the Shire. Key areas of note in each town are: Badgingarra Oval Badgingarra Community Centre surrounds Town Streets Badgingarra Landfill Site

Dandaragan Oval Dandaragan Community Centre surrounds Pioneer Park Town Streets Community Resource Centre Grounds Cemetery Aggie’s Cottage Dandaragan Landfill Site

Jurien Bay Oval Jurien Community and Recreation Centre surrounds Town Streets Public Open Space Beachridge Swales Jurien Bay Jetty Turquoise Way Sandy Cape Cemetery Industrial Areas Airfield Jurien Landfill Site

Cervantes Oval Cervantes Community Recreation Centre surrounds Parks Town Streets Industrial Area Airfield Cervantes Waste Transfer Station


Page 29 of 108

PLANT AND EQUIPMENT In 2015 / 2016 the Shire replaced or bought the following items of Plant and Equipment: Heavy Vehicles

Small Trucks 7 Yard Truck sought through WALGA eQuotes in late 2015. EMI reviewing quotes based upon budget. To be held over to 2016 / 2017 budget

Loader for Jurien Yard Seeking second hand machine at Auction. RFQ for Disposal advertised in Shire Matters in April 2016 To be held over to 2016 /2017 budget

Small Trucks Road Maintenance Truck arrived February 2016

Water Tanker Purchased second hand machine in December 2015

Maintenance Grader Arrived March 2016

Slashing Tractor Arrived June 2016

Parks Equipment

Trailers Mower trailer for Dandaragan on order

Trailers Mower trailer for Jurien Bay procured November 2015

Mowers Verti mower procured September 2015 Cub mower replaced September 2015

Light Vehicles

2 x Colorado 7 replaced October 1 x Toyota Prado replaced October 2 x utilities replaced via second hand vehicles November 2015 1 x Colorado 7 (Environmental Health Officer) replaced February 2016

with Mazda CX5 2 x Colorado 7 LTZ (Executive Manager Corporate and Community

Services [EMCCS] and EMI) were replaced in March 2016 with 2 x Toyota Fortuners


Page 30 of 108

ASSET MANAGEMENT The Infrastructure team continues to development key Asset Management programs for Shire Infrastructure. Key items addressed in 2015 / 2016 as part of ongoing Asset Management included:

1. Infrastructure Management Procedures Document reviewed To be utilised in developing relevant Asset Management Plans

2. Asset Management Roads EMI presented Road Asset Management Overview at May Forum

including. Categorising Roads Hierarchy 1 – 5 Level of Service 1 – 5 Condition Rating Inspection 1 – 5 Heavy Vehicle (RAV) Policy Capital Budget for 2016/17

Data Collection All roads are in RAMM Require revaluing

3. Foot Path Asset Management Plan RAMM Data Survey completed late 2014 Valuations unit rates to be verified and updated Renewal works completed to be updated

Develop Hierarchy High and Low Level of Service Condition Rating (Use information from Bike Plan)

These values need to be updated into RAMM

4. Bike Network Plan New projects submitted to Department of Transport for 2016 / 2017 mid

October 2015 Bashford Street precinct projects awarded ($59,750) Bashford Street Dual Use Path (Roberts to White Streets) Bayliss Street Dual Use Paths (Bashford to Hamersley Streets) Whitfield Road Dual Use Paths (Bashford to Hamersley Streets)

5. Reserves / Parks Asset Management Plan RAMM Data - previously picked up by Ben Simmonds has been

uploaded into RAMM Photos and valuations to be added Review against Public Open Space Policy.


Page 31 of 108

Condition Rating to be completed Level of Service to be completed

6. Building Asset Management Plan RAMM Data - previously picked up by Ben Simmonds has been

uploaded into RAMM Photos and valuations to be added Review against Public Open Space Policy Condition Rating to be completed Level of Service to be completed Over the last 2 years we have had all buildings and infrastructure

(minus roads and footpaths) valued by Griffin Valuers for both insurance and fair value including replacement cost, remaining effective life and current value

7. Airport Asset Management Plan Completed June 2015 Executive Manager Infrastructure to review bi-annually Executive Manager Infrastructure conducted Condition Rating

inspection May 2016 Executive Manager Infrastructure developing capital renewal budget

projects for 2016/17 and next 5 years Executive Manager Infrastructure developing maintenance plan

Royalties for Regions Jurien Bay Sewerage Project Stage 1B


Page 32 of 108

STRATEGIC PLAN The following key performance indicators from the Shire of Dandaragan Strategic Plan were addressed by the Infrastructure Team in 2014 / 2015:

GOAL AREA KEY PERFOMANCE INDICATOR COMMENTS

1. Great Place for Residential and Business Development

Ensure timely provision of essential and strategic infrastructure

Key infrastructure essential and strategic projects have been undertaken as per the Capital Projects sections of this report. Significant projects include: • Jurien Bay Infill Sewer

Project Stage 1. • Jurien Bay Foreshore

Redevelopment. • Mimegarra Road

upgrade. • Sandy Cape Road

upgrade. • Corunna Road renewal. • Meagher Drive reseal

Residents have access to television channels

The Shire continues to distribute television service from the Jurien Bay Depot. Currently the community has access to all channels available to resident in regional Western Australia

2. Healthy, Safe and Active Community

N/A

3. Strong and connected community

N/A

4. Healthy Natural and Built Environment

Manage and maintain priority road verges which link or are strategic sites on Shire reserves

Develop and implement gravel pit restoration program

Relevant gravel pits continue to be maintained and rehabilitated on an ongoing basis.


Page 33 of 108

The Infrastructure Department continues to be an extremely busy and vital component of the Shire’s delivery of services to the communities of Jurien Bay, Dandaragan, Cervantes and Badgingarra. The day-to-day routine maintenance activities, combined with the capital projects, has kept all members of the team active and provided great opportunities for staff and local contractors to work together. The year 2016 / 2017 looks to be busier again with more capital works projects likely to reach construction phase as the Shire continues its pursuit of strategic infrastructure development.

Garrick Yandle EXECUTIVE MANAGER INFRASTRUCTURE


Page 34 of 108

EXECUTIVE MANAGER CORPORATE & COMMUNITY SERVICES REPORT

2015 / 2016 FINANCE Rates & Charges A total of $5,421,564 was levied in property rates in the 2015 / 2016 financial year. In the process of rates collection a further $40,293 in income was recognised from interest on unpaid rates and instalment plan interest. As at 30 June 2016, 94.9% of rates had been collected. A specified area charge totalling $115,312.83 for repayment of a loan for the design, concept, planning, costing and construction of the Jurien Bay jetty project was also levied in 2015 / 2016. Finally, a total of $49,179 for refuse charges was collected from rateable properties in 2015 / 2016.

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

UV General UV Mining GRV General GRV Vacant

Rate Income 2015/ 2016

General Minimum


Page 35 of 108

Grants A total of $4,742,430 in grants was secured by the Shire of Dandaragan during 2015 / 2016, these include: $ 757,735 from the WA Grants Commission $ 225,000 for the Sandy Cape Extension $2,000,000 from Main Roads for the Local Roads State Initiative $ 173,774 from Main Roads WA Regional Road Group $1,149,142 from Roads to Recovery

The Shire of Dandaragan would like to thank all the agencies who have made grants or contributions towards projects in the 2015 / 2016 financial year. Financial Results The Shire of Dandaragan finished 2015 / 2016 with a surplus of $2,250,891. However, the majority of this surplus is as a result of large unspent grants and incomplete capital works projects. Therefore, this surplus does not constitute a surplus of funds after all requirements have been met in the true definition of a surplus, rather reflects outstanding commitments that will be reprogrammed into the 2016 / 2017 budget. COMMUNITY The 2015 / 2016 year has seen the consolidation of major changes in the Community Development Team at the Shire from the previous year, with the Club Development Officer/Community Services Coordinator and the Community Development Officer working to deliver community development across the Shire. This new team have been more proactive in connecting with established community groups and groups of interest. They have been working more collaboratively with the Jurien Bay Youth Group and schools throughout the Shire which is improving engagement with youth in the Shire, and has resulted in a more focused approach to Youth Services. The Team has formalised its approach to working with both seniors and young people, by developing specific plans that become informing strategies for Council. This ensures that projects are appropriate, strategically-focused, and importantly, are supported by the groups that they impact. The Age Friendly Community Plan was adopted in April 2016 which enabled older members of our communities to provide feedback and ideas for areas of focus. This plan allows Council to respond to changing needs and ensure support for the wellbeing of the Shire of Dandaragan’s ageing population. Projects we worked on such as the Age Friendly Community Bus Pilot; improved access from the RSL Village and Beachridge with upgraded footpaths in Jurien Bay; beach access for people with disability and mobility issues, and continued advocacy for support services for seniors in their own home across the Shire, were all objectives that the public raised with us


Page 36 of 108

during this consultation phase. Youth Services have been focused on Youth Leadership; Events and Social Media; and Services. There has been continued support from Council of the Leeuwin Ocean Adventure Scholarship Program which awards one full fare on a Leeuwin voyage to a young person in the Shire who is aged between 15-18 years of age. This year two young women from Jurien Bay District High School (JBDHS) were successful and participated in the trip of lifetime in October 2016. After consultation with young people, we set up a social media app specifically for youth in the Shire. Shire of Dandaragan Team App has been launched which will be one of a number of social media platforms the Shire Community Development team will use to share news, get feedback, and engage with young people from around the Shire. Council have also continued to support Jurien Bay Youth Group financially and has been working more collaboratively with the Coordinator to look at ways we can improve the service. The team also worked with JBDHS on an art mural project for the Jurien Bay Federation Memorial Park toilet block, and with Badgingarra Primary School on the WALGA Banners in the Terrace Competition. The Spray the Grey Youth Festival was also cemented as an annual youth event coordinated by the Community Development team and the second festival in October 2015 attracted a large number of the Shire’s young people. We are continuing to grow this event and to work with young people to ensure that the festival is responsive to youth and community.

Spray the Grey 2016


Page 37 of 108

Mid-2016, the Shire was successful in receiving funding from Department of Local Government and Communities to undertake a Youth Plan. A consultant has been engaged and a survey for all young people has been developed and promoted widely. To date the main respondents are under the age of eleven years so the survey has been held open until the beginning of the school year to get the older demographic involved. This is important as they are the group that the Shire is seeking to engage with to have them more involved in decisions that affect them directly. The Community Development team worked with multiple community groups and consultants on the management of the North Head Radar Installation. The site was surveyed to determine the level of historical value, and this project will continue onto its next phase which is to determine community support and ideas for management. However, it was determined that in the short-term minor repairs be undertaken to stabilise bunker ‘A’ and this was undertaken by the Shire late 2016. The main focus of the Club Development Officer is to work with clubs to assist them to be more sustainable into the future and provide training in governance, talent development and volunteer recruitment and training. Funding for the position is provided in conjunction with the Department of Sport and Recreation and the Shire of Coorow. Since commencing in August 2014 the Club Development Officer has assisted clubs to review and update their constitutions, and has provided training workshops for club committees across the two Shires. There is regular reporting to the Department of Sport and Recreation and an operational plan is developed each year. The focus for this year is to promote Kidsport to the community and involve more people in sport and recreation. Future planning workshops are scheduled for early 2017 to provide clubs from across the Shire the opportunity to learn how to plan for the future and set their clubs up for success. Community Events The Shire hosts and supports many events across each of the towns. The Community Development team works with event organisers to ensure that they comply with statutory regulations so that events are kept incident free. Well managed and appropriate events are instrumental in showcasing our towns to the wider West Australian community to encourage more visitors that help our towns grow and be economically viable. The Community Development Team worked on creating a more seamless system for approving and issuing event permits after feedback that the existing process was complicated and hard to understand. These changes are now being rolled out administratively and the team will continue to work with event organisers and other Shire departments to ensure continuity and efficiency of event approvals, and make improvements where necessary.


Page 38 of 108

During the course of the 2015 / 2016 financial year the Shire hosted a range of events for its residents and tourists. The events were varied and catered to all age demographics in the community and recognised special milestones in the nation’s history. Anzac Day, and Remembrance Day are examples of nationally significant events that are held annually at memorials across towns in the Shire. A number of open air movie nights featuring family appropriate films were held in the amphitheatre at the civic precinct. Carols by candlelight is a regular feature of the Christmas festivities in the Shire and attracts audiences from all across the spectrum. Country Arts WA provided a stage production touring WA annually for the second time and the Shire of Dandaragan was host to one of these performances. The Shire continues to promote Australia Day events in each of the towns and provides funding to the respective town communities to host these activities. The Shire also acknowledges new Australian Citizens at Citizenship ceremonies at the Shire Offices as the need arises. Citizen and Young Citizen of the year ceremonies are held each year to recognise those residents in our community that have provided outstanding service to their communities.

Citizen of the Year Winner 2015 – Jane Roberts


Page 39 of 108

Annually the Shire of Dandaragan hosts the Jurien Bay Beach Mission and the Cervantes Family Festival which is targeted at engaging young people in healthy outdoor activities utilising the Shire’s magnificent beaches. There are regular markets held on Sunday’s across the year operated by the Lions Club of Jurien Bay and attract stallholders from within the Shire as well as from further afield. These markets have become a main attraction for locals and tourists alike. A list of events and activities for the 2015/2016 year are listed below. The Lions Club Sunday Markets (8 to 10 each year) Australia Day Festivities across the four towns Citizen and Young Citizen of the Year Awards evening Indian Ocean Festival Aggies Christmas Pop Up Shop Carols in the Park Spray the Grey Youth Festival Anzac Day Service Remembrance Day Service Vietnam Veterans Day Memorial Service Duyfken Visit – Dirk Hartog 400th Anniversary Voyage Jurien Bay Family Fiesta Wamplified Jurien Bay Junior Fishing Competition Girl Guides Whitfords Coastal Region Environmental Camp Dandaragan Walkathon Jurien Bay Dog’s Breakfast Cervantes Show & Shine Cervantes Market Day The Rocky Horror Picture Show Badgingarra Chamber of Commerce BBQ Christmas Night

In addition, the Shire received a number of requests to hold weddings on local beaches from community members local and afar in which the Community Development team assisted in coordinating use of Shire land and resources. The Shire recognises the community building advantages of hosting such events and will continue to support the above activities and endeavour to attract more of these events in the future. Shire of Dandaragan / Tronox Small Grants Program Policy 6.6 - Sport and Recreation Funding includes a provision for the Shire of Dandaragan and Tronox Sporting and Recreational Equipment and Small Grants Funding program.


Page 40 of 108

The Shire of Dandaragan, in its annual budget, allocates $15,000 to be matched by Tronox to fund the program. The purpose of the program is to assist community based organisations in the purchase of durable equipment and small grants to undertake improvements. The applications for funding this year were in excess of $100,000 due to the work of the Community Development team promoting the grants to sporting and community groups. A total of $48,880 worth of projects were funded, enabled by the carryover from previous years. The following groups received funding from this program in 2015 / 2016:

Organisation Project Description Project Cost ($)

Grant ($)

Badgingarra Community Association

Laptop and software 1,010.86 505.43

Cervantes Community Recreation Centre

Kitchen Equipment 1,700.00 750.00

Cervantes Cultural Committee

Sandwich Advertising Boards

1,263.60 631.80

Cervantes Playgroup Toys 1,335.55 667.78

Dandaragan St John’s Ambulance

Shed Fit Out 2,732.25 1,366.13

Coastal Kids Care Cubby house ground cover upgrade

4,727.27 2,363.64

Jurien Bay Bowling Club Cooking Range 6,289.00 3,144.50

Jurien Bay Football Club Roller Door 2,875.00 1,437.53

Jurien Bay Football Club Blinds 4,614.80 2,307.40

Jurien Bay Progress Association

Signage 689.70 344.85

Jurien Sport and Recreation Centre

Compressor for cool room

7,436.00 3,718.00

Jurien Bay Volunteer Marine Rescue Group

Fuel tank and Pump 4,200.00 2,100.00

TOTAL $38,874.03 $19,337.06


Page 41 of 108

Community Grants Program Policy 1.6 - Community Grants Program provides funds to community based organisations and individuals to support the promotion and development of social, economic, recreational, art and cultural benefits for the residents of the Shire of Dandaragan. The policy contains two sections, firstly a recurring annual grant as follows: 1. Local publications

Each year the Shire will incorporate within the budget a grant to be provided in September of each year to the community newspapers. The grant of $250 each is to cover the cost of community service announcements by the Shire in the various local publications. Advertising by the Shire is to be invoiced separately.

Shire of Dandaragan Community Newspapers 2. Student awards - schools

Each year the Shire will contribute $100 to the Jurien Bay District High School, $100 to the Central Midlands Senior High School, and $50 each to the Dandaragan Primary School, Badgingarra Primary School, Jurien Bay Primary School and Cervantes Primary School award nights.

3. Australia Day

Each year the Shire of Dandaragan will grant $1,000 to the Jurien Bay Progress and Tourism Association, $1,000 to the Cervantes Ratepayers & Progress Association, $750 to the Badgingarra Community Association and $750 to Advance Dandaragan for Australia Day festivities. This grant is to assist organisations with conducting an Australia Day event and is not intended to meet the total cost of the event. This year, the Cervantes Ratepayers & Progress Association were unable to coordinate their local


Page 42 of 108

event so the Cervantes Football Club were able to step in to ensure the event took place.

4. Leeuwin Sail Training Foundation

The Shire of Dandaragan will make an annual grant to the Leeuwin Sail Training Foundation to the value of one full fare in support of a local participant. Due to no recipient in the previous year, this year the Shire was able to support two local participant’s to take part in the voyage.

Jurien Bay District High School Leewin Scholarship recipients

5. Art acquisition

Each year the Shire of Dandaragan will contribute to the Cervantes Cultural Committee $1,500 to secure the Shire of Dandaragan Art Acquisition Prize. The $1,500 will be awarded to the chosen artist irrespective of the purchase value of the artwork. The prize will be determined by the Shire President or his delegate, who will seek guidance from the judges. In addition to the Acquisition Prize, the Shire of Dandaragan will donate $500 towards the cost of delivering the Art Show. These funds will be spent at the discretion of the Cervantes Cultural Committee.

6. Mid-West Group of Affiliated Agricultural Societies Inc

Each year the Shire of Dandaragan will contribute to the Mid West Group of Affiliated Agricultural Societies Inc $200 to showcase the Shire of Dandaragan’s products and attractions.


Page 43 of 108

The second section of the policy allows groups and individuals to make application for funding, with each application being assessed against the policy criteria. In 2015 / 2016 the following were funded from this policy:

ORGANISATION PROJECT DESCRIPTION GRANT

Cervantes P&C Art, Music and Dance Workshop $845.00

Cervantes Playgroup Petting Zoo $926.55

Cervantes Volunteer Bush Fire Brigade

Dinner for Emergency Services $1,500.00

Advance Dandaragan Community Dinner $500.00

Advance Dandaragan Christmas Carols $300.00

Dandaragan Community Resource Centre Archive Specialist Workshop $1,500.00

Dandaragan Community Resource Centre Yallalie Meteorite Event $1,500.00

Redgum Reports Photoshop Workshop $1,500.00

West Midlands Group Women, Wellbeing and Wine $1,500.00

Wolba Wolba Heritage Committee Christmas Pop Up Stores $1,500.00

Inspirational Community Arts Network 2 x Singing, Performing and Arts Workshops

$1,000.00

Jurien Bay Men’s Shed Octoberfest $1,500.00

Dandaragan Golf Club 50th Anniversary Celebration $1,400.00

Jurien Bay Beach Mission Summer Holiday Program $1,500.00

Cervantes Family Festival Summer Holiday Program $1,500.00

Jurien Community Resource Centre 3 x Movie Licences $750.00

TOTAL $19221.55


Page 44 of 108

Scott Clayton EXECUTIVE MANAGER CORPORATE & COMMUNITY SERVICES


Page 45 of 108

COMPETITIVE NEUTRALITY 2015 / 2016 National Competition Policy reforms require local governments to comply with and implement the principles of competitive neutrality and restructure monopolies (or near monopolies), subject to a public benefits assessment. National Competition Policy is a framework for reform and is about promoting competition in business across Australia regardless of private or public ownership, size of business or ownership structure. The key issues for local government are: Competitive neutrality - removal of any net benefits, which accrue to

government business activities as a result of public ownership. Legislation review (Local Laws) - to review government regulation,

which restricts competition. Structural reform - to reform the structure of government owned

monopoly business where it is possible to introduce competition. When conducting the competitive neutrality review, Council needed to ascertain the following in relation to services provided by the Shire: Is it a business? Is the annual income over $200,000? If the annual income is under the $200,000 threshold, then Council is not required to implement competitive neutrality. At the present time, Council does not have any business units with an annual income over $200,000, therefore, Council has not had to apply the competitive neutrality principle on National Competition Policy during the year under review.


Page 46 of 108

NATIONAL COMPETITION POLICY & STATE RECORDS ACT 2015 / 2016 NATIONAL COMPETITION POLICY The Shire of Dandaragan had 35 Local Laws that may have restricted competition and hence were reviewed under National Competition Policy. This process was completed in 2000 / 2001 with the gazettal of the following Local Laws on the 9 May 2001: Activities on thoroughfares and trading in thoroughfares and public

places Beekeeping Local Government Property Standing Orders Extractive Industries Fencing Repeal Local Law 2001 Pest Plants Bushfire Brigades Public Cemeteries Dogs Local Law STATE RECORDS ACT 2000 In compliance with the State Records Act 2000, the Shire of Dandaragan has a Record Keeping Plan. The amended Record Keeping Plan outlines the improvements made to the Shire’s record keeping policies, as they relate to staff and Councillors. The Plan has assisted the Shire to implement an efficient and effective electronic records management system, InfoXpert. This system has promoted ongoing improvements and continued compliance with the State Records Act 2000. Although the conversion to an electronic system was not easy, the benefits it provides far outweigh the initial difficulties. Each individual is now responsible for their own documents, in accordance with the State Records Act; records are everyone’s responsibility.


Page 47 of 108

AUDIT REPORT 2015 / 2016


Page 48 of 108


Page 49 of 108

FINANCIAL REPORT 2015 / 2016

Declaration

SHIRE OF DANDARAGAN FINANCIAL

REPORT FOR THE YEAR ENDED 30th JUNE 2016

LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the Shire of Dandaragan being the annual financial report and other information for the financial year ended 30th June 2016 are in my opinion properly drawn up to present fairly the financial position of the Shire of Dandaragan at 30th June 2016 and the results of the operations for the financial year then ended in accordance with the Australian Accounting Standards (except to the extent that these have been varied in the Statement of Accounting Policies required by Australian Accounting Standards AAS6 "Accounting Policies" and the accompanying notes to the annual financial report) and comply with the provisions of the Local Government Act 1995 and regulations under that Act.

Signed as authorisation of issue on the 24th day of October 2016.

Tony Nottle

CHIEF EXECUTIVE OFFICER


Page 50 of 108

Statement of Comprehensive Income by Nature and Type

SHIRE OF DANDARAGAN STATEMENT OF COMPREHENSIVE INCOME by Nature or Type

for the year ending 30 June 2016

Description Notes Actual

2015/2016 Budget

2015/2016 Actual

2014/2015 Revenue from Ordinary Activities

Rates 19a 5,549,577 5,557,872 5,277,120 Grants and Subsidies 24 1,143,498 1,072,751 2,869,161 Contributions Reimbursements Donations

658,396 471,572 272,458

Service Charges

(0) (0) 24,145 Fees and Charges 23 1,928,134 1,705,777 1,911,681 Interest Earnings 2a 257,179 267,000 334,921 Other Revenue

102,515 76,599 102,787

9,639,298 9,151,572 10,792,274

Expenses from Ordinary Activities Employee Costs

(3,444,566) (3,587,839) (3,437,460) Materials and Contracts

(2,566,930) (2,803,990) (2,501,608)

Utilities

(472,362) (535,591) (421,934) Insurance

(384,601) (351,295) (372,037)

Other Expenses

(606,958) (717,394) (1,448,240) Depreciation 2a (5,677,356) (5,026,812) (3,812,044) (13,152,772) (13,022,921) (11,993,322)

(3,513,474) (3,871,349) (1,201,048)

Borrowing Costs Expense 2a (46,070) (47,899) (57,051) Grants & Subsidies (towards non-operating activities) 24 3,598,932 5,062,100 5,106,974 Profit / Loss on Disposal of Assets 17 (116,653) (212,648) (164,298) NET RESULT (77,264) 930,204 3,684,576

Other Comprehensive Income Changes on revaluation of non-current assets 26 60,722 (0) 25,222,507

60,722 (0) 25,222,507

TOTAL COMPREHENSIVE INCOME (16,542) 930,204 28,907,083

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


Page 51 of 108

Statement of Comprehensive Income by Department

SHIRE OF DANDARAGAN STATEMENT OF COMPREHENSIVE INCOME by Department


Description

Actual 2015/2016

Budget 2015/2016

Actual 2014/2015

Revenues from Ordinary Activities 2a Governance

43,554 37,375 54,320

General Purpose Funding

6,504,566 6,497,376 7,958,536 Law, Order, Public Safety

484,653 443,775 431,189

Health

16,517 6,298 16,650 Education & Welfare

(0) (0) 10,000

Community Amenities

1,168,150 1,156,961 1,368,150 Recreation and Culture

556,940 331,770 371,732

Transport

464,198 426,700 231,677 Economic Services

224,157 178,797 190,536

Other Property and Services

176,564 72,520 159,484

9,639,298 9,151,572 10,792,274

Expenses from Ordinary Activities 2a Governance

(761,128) (594,663) (830,695)


(180,834) (146,781) (119,082) Law, Order, Public Safety

(1,077,631) (1,029,941) (987,913)

Health

(317,866) (303,338) (322,208) Education & Welfare

(16,407) (10,000) (6,290)

Community Amenities

(2,059,840) (1,980,482) (1,856,024) Recreation and Culture

(2,782,776) (2,743,267) (3,471,338)

Transport

(4,920,940) (5,251,126) (3,349,151) Economic Services

(543,281) (699,706) (501,055)

Other Property and Services (492,068) (263,617) (549,566) (13,152,772) (13,022,921) (11,993,322)

(3,513,474) (3,871,349) (1,201,048)

Borrowing Costs Expense 2a Governance

(16,861) (24,432) (26,241)


(0) (0) (0) Law, Order, Public Safety

(0) (0) (0)

Health

(0) (0) (0)

Education & Welfare

(0) (0) (0) Community Amenities

(0) (0) (0)

Recreation and Culture

(28,494) (22,548) (28,568) Transport

(0) (0) (0)

Economic Services

(0) (0) (0) Other Property and Services (715) (920) (2,242)


Page 52 of 108

(46,070) (47,899) (57,051) Grants and Subsidies Non-Operating

Governance

(0) (0) (0) General Purpose Funding

(0) (0) (0)

Law, Order, Public Safety

(0) (0) 579,451 Health

(0) (0) (0)

Education & Welfare

(0) (0) (0) Community Amenities

(0) 562,000 1,062,051


225,000 612,198 407,453 Transport 3,373,932 3,887,902 3,058,019 Economic Services (0) (0) (0) Other Property and Services (0) (0) (0)

3,598,932 5,062,100 5,106,974

Profit / Loss on Asset Disposal 17 Governance

(8,432) (14,364) (0)


(0) (0) (0) Law, Order, Public Safety

(0) (0) (62,658)

Health

(4,281) (7,682) (0) Education & Welfare

(0) (0) (0)

Community Amenities

(4,535) (7,682) (0) Recreation and Culture

(0) (0) (0)

Transport

(121,272) (170,193) (86,491) Economic Services (3,781) (7,182) (0) Other Property and Services 25,648 (5,545) (15,149) (116,653) (212,648) (164,298) NET RESULT (77,264) 930,204 3,684,576 Other Comprehensive Income

Changes on revaluation of non-current assets 26 60,722 (0) 25,222,507 60,722 (0) 25,222,507

TOTAL COMPREHENSIVE INCOME (16,542) 930,204 28,907,083

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


Page 53 of 108

Statement of Financial Position

SHIRE OF DANDARAGAN STATEMENT OF FINANCIAL POSITION

as at 30 June 2016

Description Notes 30 June 2016 30 June 2015

CURRENT ASSETS Cash 3 8,843,273 13,612,925

Trade & Other Receivables 4 508,582 1,208,368 Inventories 5 25,563 26,466

TOTAL CURRENT ASSETS

9,377,418 14,847,760

NON-CURRENT ASSETS Land 6 2,628,000 2,643,000

Buildings and Improvements 6 31,114,264 31,937,069 Furniture and Equipment 6 991,650 817,522 Plant and Equipment 6 4,457,675 4,596,790 Infrastructure 7 207,380,000 201,722,983 Trade & Other Receivables 4 282,001 266,237

TOTAL NON-CURRENT ASSETS

246,853,590 241,983,602 TOTAL ASSETS 256,231,008 256,831,362

CURRENT LIABILITIES Creditors 8 (529,645) (556,971)

Provisions 10 (524,151) (502,085) Loans Leases Overdrafts 9 (213,028) (199,104) Accruals 8 (51,568) (445,435)

TOTAL CURRENT LIABILITIES

(1,318,392) (1,703,594)

NON-CURRENT LIABILITIES Provisions 10 (82,086) (97,677)

Loans Leases and Overdrafts 9 (525,195) (708,214) TOTAL NON-CURRENT LIABILTIES

(607,281) (805,891)

TOTAL LIABILITIES

(1,925,673) (2,509,485)

TOTAL NET ASSETS 254,305,335 254,321,877

EQUITY Reserves - Cash Backed 11 6,596,882 10,568,117

Revaluation Surplus 26 42,052,339 41,991,617 Accumulations

205,656,113 201,762,143

TOTAL EQUITY 254,305,335 254,321,877

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


Page 54 of 108

Statement of Changes in Equity

SHIRE OF DANDARAGAN STATEMENT OF CHANGES IN EQUITY

RESERVES

RETAINED CASH REVALUATION TOTAL

NOTE SURPLUS BACKED SURPLUS EQUITY

$ $ $ $

Balance as at 30 June 2014

195,738,157 12,907,528 16,769,111 225,414,795

Changes in Accounting Policy

(0) (0) (0) (0)

Correction of Errors

(0) (0) (0) (0)

Restated Balance

195,738,157 12,907,528 16,769,111 225,414,795

Comprehensive Income Net Result

3,684,576 (0) (0) 3,684,576 Changes on Revaluation of Non-Current Assets 12 (0) (0) 25,222,507 25,222,507 Total Comprehensive Income

3,684,576 (0) 25,222,507 28,907,083

Reserve Transfers

2,339,410 (2,339,410) (0) (0)


201,762,144 10,568,118 41,991,617 254,321,878

Comprehensive Income

Net Result

(77,264) (0) (0) (77,264) Changes on Revaluation of Non-Current Assets 12 (0) (0) 60,722 60,722 Total Other Comprehensive Income

(77,264) (0) 60,722 (16,542)

Reserve Transfers

3,971,235 (3,971,235) (0) (0)


205,656,114 6,596,883 42,052,339 254,305,336



Page 55 of 108

Statement of Cash Flows SHIRE OF DANDARAGAN

STATEMENT OF CASH FLOWS


Note

Actual 2015/2016

Budget 2015/2016

Actual 2014/2015

Cash Flows from Operating Activities Receipts Rates

5,486,323 5,571,872 5,375,072 Operating Grants, Subsidies & Contributions

1,801,894 2,056,323 3,141,619

Service Charges

(0) (0) 24,145 Fees and Charges

2,591,684 1,705,777 1,411,900

Interest Earnings

257,179 267,000 334,921 Goods and Services Tax

630,274

559,228

Other Revenue 102,515 76,599 102,787

10,869,869 9,677,571 10,949,672

Payments Employee Costs

(3,415,163) (3,587,839) (3,427,860) Materials and Contracts

(2,965,787) (3,006,434) (1,978,342)

Utilities

(472,362) (535,591) (421,934) Insurance

(384,601) (351,295) (372,037)

Interest Expenses

(47,836) (47,899) (58,925) Goods and Services Tax

(580,121)

(541,739)

Other Expenses (606,958) (717,394) (628,806)

(8,472,828) (8,246,452) (7,429,643)

Net Cash provided by Operating Activities 12b 2,397,041 1,431,119 3,520,029

Cash Flows from Investing Activities Payment for Property, Plant and Equipment

(1,379,595) (2,508,743) (5,392,801) Payments for Construction of Infrastructure

(9,581,487) (12,378,840) (3,272,531)

Grants/Contributions for Assets

3,598,932 5,062,100 5,106,974 Proceeds from Sale of assets 17 373,570 278,363 186,556 Net Cash Used in Investing Activities

(6,988,580) (9,547,120) (3,371,802)

Cash Flows from Financing Activities Repayment of Debentures 18a (199,096) (199,104) (214,121)

Proceeds from Self-Supporting Loans

(9,019) 44,673 34,737 Payment to Community Groups (self supporting loans)

(0) (80,000) (0)

Proceeds from New Debentures 30,000 109,066 (0) Net Cash Provided by (Used in) Financing Activities

(178,115) (125,365) (179,384)

Net Increase (Decrease) in Cash Held

(4,769,654) (8,241,366) (31,157)

Cash at Beginning of Year 13,612,925 13,612,926 13,644,079 Cash at End of Year 12a 8,843,271 5,371,560 13,612,922


Page 56 of 108

Rate Setting Statement

SHIRE OF DANDARAGAN RATE SETTING STATEMENT by Department


Description

Notes

Actual 2015/2016

Budget 2015/2016

Actual 2014/2015

Operating Revenues / Sources Governance

43,554 37,375 54,320 General Purpose Funding (Excluding Rate Revenue)

1,083,002 1,067,223 2,797,023

Law, Order and Public Safety

484,653 443,775 1,010,640 Health

16,517 6,298 16,650

Education & Welfare

(0) (0) 10,000 Community Ammenities

1,168,150 1,718,961 2,430,201


781,940 943,968 779,186 Transport

3,838,131 4,314,602 3,289,696

Economic Services

224,157 178,797 190,536 Other Property and Services 202,212 72,520 161,835

7,842,314 8,783,519 10,740,086

Expenses / (Application) Governance

(786,422) (633,458) (856,936) General Purpose Funding

(180,834) (146,781) (119,082)

Law, Order and Public Safety

(1,077,631) (1,029,941) (1,050,570) Health

(322,147) (311,019) (322,208)

Education & Welfare

(16,407) (10,000) (6,290) Community Ammenities

(2,064,374) (1,988,164) (1,856,024)


(2,811,270) (2,765,815) (3,499,906) Transport

(5,042,212) (5,421,319) (3,435,642)

Economic Services

(547,062) (706,888) (501,055) Other Property and Services (492,783) (270,082) (569,308)

(13,341,143)

(13,283,468)

(12,217,022)

Adjustments for Non-Cash (Revenue) and Expenditure (Profit)/Loss on Asset Disposals 17 (116,653) (212,648) (164,298)

Movement in Accrued Interest

1,766 (0) 1,874 Movement in Accrued Salaries and Wages

(22,928) (0) 102,297

Movement in Employee Provisions

(6,476) (0) (111,897) Movement in Deferred Rates

6,745 (0) 1,438

Movement in Accrued Expenses

415,028 (0) (409,220) Loss on fair value of asset through profit & loss

(0) (0) (819,436)


Page 57 of 108

Depreciation on Assets 2a (5,677,356) (5,026,812) (3,812,044)

Total Operating less non cash items

(98,955) 739,510 3,734,350

Capital Revenue and (Expenditure) Purchase Land and Buildings

(367,858) (1,298,434) (3,961,436) Purchase Furniture and Equipment

(2,482) (55,450) (12,333)

Purchase Plant and Equipment

(1,009,254) (1,154,859) (1,419,033) Purchase Tools and Attractive Items

(0) (0) (0)

Purchase Infrastructure Assets - Roads

(4,360,771) (5,945,674) (2,435,927) Purchase Infrastructure Assets - Parks & Reserves

(356,623) (1,247,970) (163,608)

Purchase Infrastructure Assets - Other

(4,864,093) (5,185,196) (672,996) Proceeds from disposal of assets 17 373,570 278,363 186,556 Proceeds from Debentures (New) 18 30,000 109,066 (0) Repayment of Debentures 18 (199,095) (199,104) (214,121) Payment of Self Supporting Loan to Community Group

(50,760) (80,000) (0)

Self-Supporting Loan Principal Income

41,740 44,673 34,737 Transfer to Reserves 11 (853,706) (863,224) (2,050,759) Transfer from Reserves 11 4,824,941 5,787,447 4,390,169

Surplus/(Deficit) July 1 B/Fwd 19b 3,722,672 3,640,700 1,145,560 Surplus/(Deficit) June 30 C/Fwd 19b 2,250,891 0 3,722,672

Amount raised from rates 19a 5,421,564 5,430,153 5,161,512


ANNUAL REPORT 2015 / 2016

Page 57 of 108

Note 1 – Significant Accounting Policies

The significant policies, which have been adopted in the preparation of this financial report, are: (a) Basis of Accounting

The financial report is a general purpose financial report which has been prepared in accordance with 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 and accompanying regulations. The reports have been prepared on the accrual basis under the convention of historical cost accounting modified, where applicable, by measurement at fair value of selected non-current assets, financial assets and liabilities. Except for cash flow and rate setting information, the report has also been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities.

Critical Accounting Estimates The preparation of a financial report in conformity with Australian Accounting Standards require 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 which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

(b) The Local Government Reporting Entity All Funds through which the Council controls resources to carry on its functions have been included 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 balances between those Funds (for example, loans and transfers between Funds) have been eliminated. All monies held in the Trust Funds are excluded from the financial statements. A separate statement of those monies appears at Note 16 to these financial statements.

(c) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of

GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables in the statement of financial position.


Page 58 of 108

Cash flows are presented on a Gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows..

(d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with

banks and other short term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial position.

(e) Trade and Other Receivables

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.

(f) Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(g) Fixed Assets

Mandatory Requirement to Revalue Non-Current Assets Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the measurement of non-current assets at Fair Value became mandatory. The amendments allow for a phasing in of fair value in relation to fixed assets over three years as follows: (a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local

government that are plant and equipment; and (b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local

government –

(i) that are plant and equipment; and

(ii) that are –


Page 59 of 108

(I) land and buildings; or

(II) infrastructure;

and

(c) for a financial year ending on or after 30 June 2015, the fair value of all of the assets of the local government.

Thereafter, in accordance with the regulations, each asset class must be revalued at least every 3 years.

In 2013, Council commenced the process of adopting Fair Value in accordance with the Regulations.

Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been made in the financial report as necessary.

Initial Recognition and Measurement between Mandatory Revaluation Dates

All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory measurement framework detailed above. In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads. Individual assets acquired between initial recognition and the next revaluation of the asset class in accordance with the mandatory measurement framework detailed above, are carried at cost less accumulated depreciation as management believes this approximates fair value. They will be subject to subsequent revaluation at the next anniversary date in accordance with the mandatory measurement framework detailed above.

Revaluation

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in equity. All other decreases are recognised in profit or loss.

Land under Roads 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 AASB 1051 Land Under Roads and the fact Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.


Page 60 of 108

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

Whilst this treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail. Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.

(h) Depreciation of Non-Current Assets The depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements. When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways: a) Restated proportionately with the change in the gross carrying amount of the asset so that

the carrying amount of the asset after revaluation equals its revalued amount; or b) Eliminated against the gross carrying amount of the asset and the net amount restated to

the revalued amount of the asset.

Buildings 10 to 50 years Furniture and Equipment 5 to 20 years Plant and Equipment 5 to 15 years Sealed roads and streets

formation not depreciated pavement 30 years seal 30 years

Gravel roads formation not depreciated pavement 30 years

gravel sheet 15 years pavement 50 years Foot paths - slab 20 years

Sewerage piping 100 years Water supply piping & drainage systems

75 years

Footpaths 50 years Infrastructure Parks & Reserves 10 to 50 years Infrastructure Other 10 to 50 years

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.


Page 61 of 108

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus. Capitalisation Threshold Expenditure on items of equipment under $2,000 is not capitalised. Rather, it is recorded on an asset inventory listing. Fair Value of Assets and Liabilities When performing a revaluation, the Council uses a mix of both independent and management valuations using the following as a guide: Fair Value is the price that Council would receive to sell the asset or would have to pay to transfer a liability, in an orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset (ie the market with the greatest volume and level of activity for the asset or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (ie the market that maximises the receipts from the sale of the asset after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

Fair Value Hierarchy

AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurement into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

Level 1

Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.


Page 62 of 108

Level 2

Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3

Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

Valuation techniques

The Council selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Council are consistent with one or more of the following valuation approaches:

Market approach

Valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

Income approach

Valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

Cost approach

Valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

Valuation techniques

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Council gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability and considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.

As detailed above, the mandatory measurement framework imposed by the Local


Page 63 of 108

Government (Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to be revalued at least every 3 years.

(i) Investments and Other Financial Assets

Classification

Council classifies its investments in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit and loss Financial assets at fair value through profit or loss are financial assets held for trading. A financial

asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets.

(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that

are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in trade and other receivables in the balance sheet.

(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable

payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. If Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets.

(iv) Available-for-sale financial assets Available-for-sale financial assets, comprising principally marketable equity securities, are non-

derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the Council no longer has any significant continual involvement in the risks and benefits associated with the asset.


Page 64 of 108

Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of the consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

Subsequent measurement Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.

Available-for-sale financial assets and financial assets at fair value through profit and loss are

subsequently carried at fair value. Gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are presented in the income statement within other income or other expenses in the period in which they arise. Dividend income from financial assets at fair value through profit and loss is recognised in the income statement as part of revenue from continuing operations when Council’s right to receive payments is established. Changes in the fair value of other monetary and non-monetary securities classified as available-for- sale are recognised in equity.

Impairment A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as

a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value

of the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the

debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance

account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

(k) Impairment

In accordance with Australian Accounting Standards the Shire’s assets, other than inventories, are assessed at each reporting date to determine whether there is any indication they may be impaired.


Page 65 of 108

Where such an indication exists, an estimate of the recoverable amount of the asset is made in accordance with AASB 136 ‘Impairment of Assets’ and appropriate adjustments made.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating

unit exceeds its recoverable amount. Impairment losses are recognised in the income statement.

For non-cash generating assets such as roads, drains, public buildings and the like, value in use is represented by the depreciated replacement cost of the asset.

(l) Trade and Other Payables Trade payables and other payables are carried at amortised cost. They represent liabilities for goods

and services provided to the Shire prior to the end of the financial year that are unpaid and arise when the Shire becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

(m) Employee Benefits

The provisions for employee entitlements relates to amounts expected to be paid for long service leave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries and Annual and Long Service Leave (Short-term benefits)

The provision for employee entitlements to wages, salaries, annual leave and long service leave expected to be settled within 12 months represents the amount that the municipality has a present obligation to pay resulting from employees’ services provided to balance date. The provision has been calculated at nominal amounts based on remuneration rates the Council expects to pay and includes related on-costs.

(ii) Long Service Leave (Long-term benefits) The liability for long service leave is recognised in the provision for employee benefits and

measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match as closely as possible, the estimated future cash outflows. Where Council does not have the unconditional right to defer settlement beyond 12 months, the liability is recognised as a current liability.

(n) Interest-bearing Loans and Borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings.


Page 66 of 108

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Borrowing costs are recognised as an expense when incurred and adjusted for accrued interest at balance day.

(o) Provisions Provisions are recognised when: The council has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

(p) Leases

Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred

. (q) Rates, Grants, Donations and Other Contributions

Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions. Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates. Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed in Note 2(c). That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operation for the current reporting period.

(r) Superannuation The Council contributes to a number of Superannuation Funds on behalf of employees. All funds to which the Council contributes are defined contribution plans.

(s) Rounding Off Figures All figures in this annual financial report, other than a rate in the dollar, are rounded to the nearest dollar.

(t) Comparative Figures


Page 67 of 108

Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year. Where required, comparative figures shown in this annual financial report relate to the original budget estimate for the relevant item of disclosure.

(u) Current and Non-Current Classification

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for resale where it is held as non-current based on Council’s intentions to release for sale.

(v) Budget Comparative Figures

Unless otherwise stated, the budget comparative figures shown in this annual financial report relate

to the original budget estimate for the relevant item of disclosure.

(w) Intangible Assets

Easements Due to legislative changes, Easements are required to be recognised as assets. They are initially recognised at cost and have an indefinite useful life. It has been deemed that all easement in the control of the Council have a NIL value.

(x) New Accounting Standards and Interpretations for Application in Future Periods

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Council. Management’s assessment of the new and amended pronouncement that are relevant to the Council, applicable to future reporting periods and which have not yet been adopted are set out as follows.


Page 68 of 108

Title

Issu

ed /

Com

pile

dAp

plic

able

(1)

Impa

ct

(i)

AASB

9 F

inan

cial

Inst

rum

ents

Dec

embe

r 201

41

Janu

ary

2018

Nil

– Th

e ob

ject

ive

of th

is S

tand

ard

is to

impr

ove

and

sim

plify

the

(inco

rpor

atin

g AA

SB 2

014-

7 an

dap

proa

ch fo

r cla

ssifi

catio

n an

d m

easu

rem

ent o

f fin

anci

al a

sset

sAA

SB 2

014-

8)co

mpa

red

with

the

requ

irem

ents

of A

ASB

139.

Giv

en th

e na

ture

of

the

finan

cial

ass

ets

of th

e C

ity, i

t is

not a

ntic

ipat

ed th

e St

anda

rd

will

have

any

mat

eria

l effe

ct.

(ii)

AASB

15

Rev

enue

from

Con

tract

s w

ith

Dec

embe

r 201

41

Janu

ary

2017

This

Sta

ndar

d es

tabl

ishe

s pr

inci

ples

for e

ntiti

es to

app

ly to

repo

rtC

usto

mer

sus

eful

info

rmat

ion

to u

sers

of f

inan

cial

sta

tem

ents

abo

ut th

e na

ture

,am

ount

, tim

ing

and

unce

rtain

ty o

f rev

enue

and

cas

h flo

ws

aris

ing

from

a c

ontra

ct w

ith a

cus

tom

er.

The

effe

ct o

f thi

s St

anda

rd w

ill de

pend

upo

n th

e na

ture

of f

utur

etra

nsac

tions

the

City

has

with

thos

e th

ird p

artie

s it

has

deal

ings

with

. It m

ay o

r may

not

be

sign

ifica

nt.

(iii)

AASB

16

Leas

esFe

brua

ry 2

016

1 Ja

nuar

y 20

19U

nder

AAS

B 16

ther

e is

no

long

er a

dis

tinct

ion

betw

een

finan

cean

d op

erat

ing

leas

es. L

esse

es w

ill no

w b

ring

to a

ccou

nt a

right

-to-u

se a

sset

and

leas

e lia

bilit

y on

to th

eir s

tate

men

t of f

inan

cial

poiti

on fo

r all

leas

es. E

ffect

ivel

y th

is m

eans

the

vast

maj

ority

of

oper

atin

g le

ases

as

defin

ed b

y th

e cu

rren

t AAS

B 11

7 Le

ases

whi

chcu

rren

tly d

o no

t im

pact

the

stat

emen

t of f

inan

cial

pos

ition

will

bere

quire

d to

be

capi

talis

ed o

n th

e st

atem

ent o

f fin

anci

al p

ositi

on o

nce

AAS

B 16

is a

dopt

ed.

Cur

rent

ly, o

pera

ting

leas

e pa

ymen

ts a

re e

xpen

sed

as in

curr

ed.

This

will

ceas

e an

d w

ill be

repl

aced

by

both

dep

reci

atio

n an

d in

tere

st c

harg

es. B

ased

on

the

curr

ent n

umbe

r of o

pera

ting

leas

es h

eld

by th

e C

ity, t

he im

pact

is n

ot e

xpec

ted

to b

esi

gnifi

cant

.


Page 69 of 108

Title

Issu

ed /

Com

pile

dAp

plic

able

(1)

Impa

ct

(iv)

AASB

201

4-3

Amen

dmen

ts to

Aus

tralia

nAu

gust

201

41

Janu

ary

2016

This

Sta

ndar

d am

ends

AAS

B 11

: Joi

nt A

rran

gem

ents

to re

quire

the

Acco

untin

g St

anda

rds

- Acc

ount

ing

for

acqu

irer o

f an

inte

rest

(bot

h in

itial

and

add

ition

al) i

n a

join

t ope

ratio

nAc

quis

ition

s of

Inte

rest

s in

Joi

nt O

pera

tions

in w

hich

the

activ

ity c

onst

itute

s a

busi

ness

, as

defin

ed in

AAS

B 3:

Bus

ines

s C

ombi

natio

ns,

to a

pply

all

of th

e pr

inci

ples

on

busi

ness

[AAS

B 1

& AA

SB 1

1]co

mbi

natio

ns a

ccou

ntin

g in

AAS

B 3

and

othe

r Aus

tralia

n Ac

coun

ting

Stan

dard

s ex

cept

for t

hose

prin

cipl

es th

at c

onfli

ct w

ithth

e gu

idan

ce in

AAS

B 11

; and

dis

clos

e th

e in

form

atio

n re

quire

dby

AAS

B 3

and

othe

r Aus

tralia

n Ac

coun

ting

Stan

dard

s fo

r bus

ines

sco

mbi

natio

ns.

Sinc

e ad

optio

n of

this

Sta

ndar

d w

ould

impa

ct o

nly

acqu

isiti

ons

ofin

tere

sts

in jo

int o

pera

tions

on

or a

fter 1

Jan

uary

201

6,m

anag

emen

t bel

ieve

s it

is im

prac

ticab

le a

t thi

s st

age

to p

rovi

de a

reas

onab

le e

stim

ate

of s

uch

impa

ct o

n th

e C

ity's

fina

ncia

lst

atem

ents

.

(v)

AASB

201

4-4

Amen

dmen

ts to

Aus

tralia

n

Augu

st 2

014

1 Ja

nuar

y 20

16Th

is S

tand

ard

amen

ds A

ASB

116

and

AASB

138

to e

stab

lish

the

Acco

untin

g St

anda

rds

- Cla

rific

atio

n of

pr

inci

ple

for t

he b

asis

of d

epre

ciat

ion

and

amor

tisat

ion

as b

eing

the

Acce

ptab

le M

etho

ds o

f Dep

reci

atio

n an

dex

pect

ed p

atte

rn o

f con

sum

ptio

n of

the

futu

re e

cono

mic

ben

efits

of

Amor

tisat

ion

an a

sset

. It a

lso

clar

ifies

the

use

of re

venu

e-ba

sed

met

hods

to

calc

ulat

e th

e de

prec

iatio

n of

an

asse

t is

not a

ppro

pria

te n

or is

[AAS

B 11

6 &

138]

reve

nue

gene

rally

an

appr

opria

te b

asis

for m

easu

ring

the

cons

umpt

ion

of th

e ec

onom

ic b

enef

its e

mbo

died

in a

n in

tang

ible

asse

t.

Giv

en th

e C

ity c

uren

tly u

ses

the

expe

cted

pat

tern

of c

onsu

mpt

ion

of th

e fu

ture

eco

nom

ic b

enef

its o

f an

asse

t as

the

basi

s of

cal

cula

tion

of d

epre

ciat

ion,

it is

not

exp

ecte

d to

hav

e a

sign

ifica

nt im

pact

.

(vi)

AASB

201

4-5

Amen

dmen

ts to

Aus

tralia

n D

ecem

ber 2

014

1 Ja

nuar

y 20

17C

onse

quen

tial c

hang

es to

var

ious

Sta

ndar

ds a

risin

g fro

m th

e Ac

coun

ting

Stan

dard

s ar

isin

g fro

m A

ASB

15is

suan

ce o

f AAS

B 15

.

It w

ill re

quire

cha

nges

to re

flect

the

impa

ct o

f AAS

B 15

.


Page 70 of 108

Title

Issu

ed /

Com

pile

dAp

plic

able

(1)

Impa

ct

(vii)

AASB

201

5-2

Amen

dmen

ts to

Aus

tralia

n Ja

nuar

y 20

151

Janu

ary

2016

This

Sta

ndar

d am

ends

AAS

B 10

1 to

pro

vide

cla

rific

atio

n re

gard

ing

Acco

untin

g St

anda

rds

– D

iscl

osur

eth

e di

sclo

sure

requ

irem

ents

in A

ASB

101.

Spe

cific

ally

, the

Initi

ativ

e: A

men

dmen

ts to

Stan

dard

pro

pose

s na

rrow

-focu

s am

endm

ents

to a

ddre

ss s

ome

of

AASB

101

the

conc

erns

exp

ress

ed a

bout

exi

stin

g pr

esen

tatio

n an

d di

sclo

sure

requ

irem

ents

and

to e

nsur

e en

titie

s ar

e ab

le to

use

judg

emen

t[A

ASB

7, 1

01, 1

34 &

104

9]w

hen

appl

ying

a S

tand

ard

in d

eter

min

ing

wha

t inf

orm

atio

n to

disc

lose

in th

eir f

inan

cial

sta

tem

ents

.

This

Sta

ndar

d al

so m

akes

edi

toria

l and

con

sequ

entia

l am

endm

ents

as a

resu

lt of

am

endm

ents

to th

e St

anda

rds

liste

d in

the

title

colu

mn.

It is

not

ant

icip

ated

it w

ill ha

ve a

ny s

igni

fican

t im

pact

on

disc

losu

res

as th

ey c

urre

ntly

exi

st a

nd a

ny c

hang

es w

ill re

late

to

pres

enta

tion.

(viii)

AASB

201

5-6

Amen

dmen

ts to

Aus

tralia

n M

arch

201

51

July

201

6Th

e ob

ject

ive

of th

is S

tand

ard

is to

ext

end

the

scop

e of

AAS

B 12

4Ac

coun

ting

Stan

dard

s - E

xten

ding

Rel

ated

R

elat

ed P

arty

Dis

clos

ures

to in

clud

e no

t-for

-pro

fit s

ecto

r ent

ities

.Pa

rty D

iscl

osur

es to

Not

-for-

Prof

it Pu

blic

Sect

or E

ntiti

esTh

e St

anda

rd is

exp

ecte

d to

hav

e a

sign

ifica

nt d

iscl

osur

e im

pact

on

the

finan

cial

repo

rt of

the

City

as

both

Ele

cted

Mem

bers

and

Sen

ior

[AAS

B 10

, 124

& 1

049]

Man

agem

ent w

ill be

dee

med

to b

e Ke

y M

anag

emen

t Per

sonn

elan

d re

sulta

nt d

iscl

osur

es w

ill be

nec

essa

ry.

Not

es:

(1) A

pplic

able

to re

porti

ng p

erio

ds c

omm

enci

ng o

n or

afte

r the

giv

en d

ate.


Page 71 of 108

Note 2 2. OPERATING REVENUES AND EXPENSES

(a) Result from Ordinary Activities

The result from ordinary activities includes: (i) Charging as an Expense:

Depreciation

Actual 2015/2016

Actual 2014/2015

By Program Governance

164,381 157,195 Law Order and Public Safety

176,715 112,083

Health

24,612 22,839 Community Amenities

446,560 202,160


908,665 926,320 Transport

3,329,330 1,790,618

Economic Services

57,930 27,465 Other Property and Services

569,163 573,364

5,677,356 3,812,044

By Class Land and Buildings

1,131,312 955,868

Plant and Equipment

516,540 448,312

Furniture and Equipment

105,034 107,730

Infrastructure - Roads

2,862,999 1,639,311

Infrastructure - Parks and Reserves

143,431 470,016

Infrastructure - Other

918,040 190,807

5,677,356 3,812,044

Auditors Remuneration - Audit

19,580 12,050

Interest Expenses Accrued Interest Adjustment

(1,766) (1,874) Debentures (refer Note 18(a)) 47,836 58,925

46,070 57,051

Rental Charges - Operating Leases 44,784 40,125

(ii) Crediting as Revenue: Actual

2015/2016 Budget

2015/2016 Actual

2014/2015

Interest Earnings Investments - Reserve Funds 195,482 200,000 261,725

- Other Funds 19,817 25,000 31,832 Other Interest Revenue (refer note 22) 41,880 42,000 41,365

257,179 267,000 334,921


Page 72 of 108

Note 2 (cont) (b) Statement of Objectives

The Shire of Dandaragan is dedicated to providing high quality services to the community through the various service orientated programmes which it has established:-

General Purpose Funding (Schedule 3) Rate revenue and expenses (excluding Specified Area Rate income), amounts received from Government bodies of a general purpose nature and amounts receivable in respect of interest on deferred pensioner rates. Interest received from investments. It also includes Valuation and Legal Expenses.

Governance (Schedule 4) Members’ Costs incurred in carrying out Council’s functions.

Law, Order, Public Safety (Schedule 5)

Supervision of various by-laws, fire prevention and animal control.

Health (Schedule 7) Health administration and inspection, maintenance of doctor’s surgery, residence and other health and preventative services.

Community Amenities (Schedule 10) Rubbish collection services, rubbish tip maintenance, effluent disposal, townsite stormwater drainage control, maintenance and protection of environment, tourism, television rebroadcasting facilities, administration of Town Planning Scheme, operations of Community Development Officer and maintenance of cemeteries.

Recreation and Culture (Schedule 11)

Maintenance of halls and community centres, maintenance of beaches and foreshore amenities, maintenance of parks, gardens and reserves, and library services.

Transport (Schedule 12) Construction and maintenance of roads, footpaths, depots, traffic signs, street trees, street lighting and airfields.

Economic Services (Schedule 13) Pest & Vermin Control Services and administration of Building Control.

Other Property and Services (Schedule 14) Private works, plant operation costs, overhead costs, salaries and wages.


Page 73 of 108

Note 2 (cont)

2. O

PERA

TIN

G R

EVEN

UES

AN

D EX

PEN

SES

( c )

Cond

ition

s ove

r Gra

nts /

Con

trib

utio

ns

Gran

t/Co

ntrib

utio

nFu

nctio

n/Ac

tivity

Ope

ning

Ba

lanc

e(1)

01/0

7/14

Rece

ived

(2)

2014

/201

5Ex

pend

ed(3

) 20

14/2

015

Clos

ing

Bala

nce

30/0

6/15

Rece

ived

(2)

2015

/201

6Ex

pend

ed(3

)

2015

/201

6

Clos

ing

Bala

nce

30/0

6/16

R4R

Fore

shor

eO

ther

Rec

reat

ion

& C

ultu

re39

9,90

0

26,1

83

37

3,71

7

91,9

84

28

1,73

3

Jurie

n CC

TVO

ther

Law

Ord

er &

Pub

lic

Safe

ty25

,000

25,0

00

25

,000

-

Ro

ads t

o Re

cove

ryTr

ansp

ort

402,

122

79

,391

322,

731

1,

149,

142

1,47

1,87

3

-

Loca

l Roa

ds S

tate

Initi

ativ

eTr

ansp

ort

1,84

0,00

0

1,

076,

374

763,

626

2,

000,

000

1,59

4,49

9

1,

169,

127

Aged

Frie

ndly

Com

mun

ities

tr

ateg

ic P

lan

Educ

atio

n &

Wel

fare

10,0

00

10

,000

10,0

00

-

Com

mun

ity C

rime

Prev

entio

n Fu

ndO

ther

Rec

reat

ion

& C

ultu

re6,

500

6,

500

6,

500

-

Aged

Frie

ndly

Com

mun

ities

Sm

all V

alue

Gra

ntTr

ansp

ort

51,0

00

51

,000

51,0

00

-

-

-

-

-

R4R

2012

/13

Indi

vidu

al

Com

pone

ntRe

crea

tion

and

Cultu

re19

8,55

1

1,73

4

2,47

2

197,

813

20

,969

176,

844

To

tal

223,

551

2,

711,

256

1,18

4,41

9

1,

750,

388

3,14

9,14

2

3,

271,

825

1,62

7,70

5


Page 74 of 108

Note 3

Actual 2015/2016

Actual 2014/2015

3. CASH AND CASH EQUIVALENTS Unrestricted 2,246,391 3,044,809

Restricted 6,596,882 10,568,117 8,843,273 13,612,925 The following restrictions have been imposed by regulations or other

externally imposed requirements : Plant Replacement Reserve 576,353 855,811

Building Reserve 862,589 588,052

Long Service Leave Reserve Rubbish Reserve 357,962 351,029

Community Centre reserve 373,498 360,380

Television Reserve 92,244 90,458

Bushfire Reserve Computer Reserve 53,818 52,776

Annual Leave Entitlements Reserve Road Construction Reserve Caravan Parks Reserve 398,522 346,158

Playground Equipment Reserve Land Development Reserve 66,697 65,405

Parking Requirements Reserve 10,765 10,557

Coastal / Foreshore Development Reserve Parks and Recreational Grounds Development Reserve 355,176 348,297

Footpath Construction Reserve Sport and Recreation Reserve 182,854 130,280

Admin Office Extension Reserve 426 425

Landscaping Reserve 2,499 2,451

Jetty Reserve 276,558 336,660

Aerodrome Reserve 79,692 56,141

Housing Reserve Jurien Bay City Centre Enhancement Project (Supertowns) Reserve 494,397 3,829,365

Staff Attraction & Incentive Reserve 197,822 193,990

Public Open Space Renewal Reserve 739,715 557,373

Infrastructure Renewal Reserve 1,056,110 937,591

Public Open Space Construction Reserve 84,279 82,647

Infrastructure Construction Reserve Building Construction Reserve 109,687 107,563

Leave Reserve 203,419 199,479

Sewer Stage 1B Reserve 21,798 1,065,231

Total Reserve 6,596,882 10,568,117


Page 75 of 108

Note 4

2016

2015

4. TRADE AND OTHER RECEIVABLES

$

$

Current

Rates Outstanding

244,702

188,192

Sundry Debtors

146,873

737,133

GST Receivable

117,007

209,753

Accrued Income

0

73,290

508,582

1,208,368

Non-Current

Rates Outstanding - Pensioners

32,598

25,854

Loans - Clubs/Institutions

247,541

238,522

Bonds and Deposits

1,862

1,862

282,001

266,237

Note 5

2016

2015

5. INVENTORIES

Current

Fuel and Materials

25,563

26,466

25,563

26,466


Page 76 of 108

Note 6

6. PROPERTY, PLANT AND EQUIPMENT 2016

2015

$

$

Land and Buildings - Independent Valuation 2014 31,574,502

31,574,502

Additions after Valuation - cost

4,244,294

3,961,435

Less Accumulated Depreciation

(2,076,532)

(955,868)

33,742,264

34,580,069

Furniture and Equipment - Independent Valuation 2016 991,650

901,170


0

133,833


0

(217,481)

991,650

817,522

Plant and Equipment - Independent Valuation 2016 4,386,050

4,113,150


71,805

1,287,230


(180)

(803,590)

4,457,675

4,596,790

Depreciated Cost of PP&E at fair value 39,191,589

39,994,381

Current Replacement cost of

Depreciated PP&E at fair value

41,268,301

41,971,320

less Land

(2,643,000)

(2,643,000)


38,625,301

39,328,320

Depreciated PP&E at fair value less land

less Accumulated Depreciation

(2,076,712)

(1,976,939)

Depreciate Cost of PP&E at fair value (less land) 36,548,589

37,351,381

Land

2,643,000

2,643,000

Depreciated Cost of PP&E at fair value 39,191,589 39,994,381


Page 77 of 108

Note 6 (cont)

Land & Buildings The Shire’s land and buildings were revalued at 30 June 2014 by independent valuers. In relation to land and non-specialised buildings, valuations were made on the basis of observable open market values of similar assets, adjusted for condition and comparability, at their highest and best use (Level 2 inputs in the fair value hierarchy). With regard to specialised buildings, these were valued having regard for their current replacement cost utilising both observable and unobservable inputs being construction costs based on recent contract prices, current condition (Level 2 inputs), residual values and remaining useful life assessments (Level 3 inputs). Given the significance of the Level 3 inputs into the overall fair value measurement, these specialised building assets are deemed to have been valued using Level 3 inputs. These Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement. The revaluation of these assets resulted in an overall increase of $15,555,572.87 in the net value of the Shire’s land and buildings. All of this increase was credited to the revaluation surplus in the Shire’s equity and was recognised as Changes on Revaluation of non-current Assets in the Statement of Comprehensive Income. Furniture and Equipment & Plant and Equipment: Both furniture and equipment and plant and equipment were revalued in 2016 as part of the mandatory requirements embodied in Local Government (Financial Management) Regulation 17A. Whilst the additions since that time are shown at cost, given they were acquired at arms length and any accumulated depreciation reflects the usage of service potential, it is considered the recorded written down value approximates fair value. Thus, the value is considered in accordance with Local Government (Financial Management (Regulation) 17A (2) which requires these assets to be shown at fair value. They will be revalued during the year ended 30 June 2019 in accordance with the mandatory asset measurement framework detailed at Note 1.


Page 78 of 108

Note 6 (cont)

6.PR

OPE

RTY,

PLA

NT

AND

EQU

IPM

ENT

(Con

tinue

d)

Mov

emen

ts in

Car

ryin

g Am

ount

s

Mov

emen

t in

the

carr

ying

am

ount

s of e

ach

clas

s of p

rope

rty,

pla

nt a

nd e

quip

men

t bet

wee

n th

e be

ginn

ing

and

the

end

of th

e cu

rren

t fin

anci

al y

ear.

Bala

nce

Carr

ying

at th

eRe

valu

atio

nAm

ount

Begi

nnin

gIn

crem

ents

/De

prec

iatio

nat

the

of th

e Ye

arAd

ditio

ns(D

ispo

sals

)(D

ecre

men

ts)

(Exp

ense

)En

d of

Yea

r$

$$

$$

$

Free

hold

Lan

d(L

evel

2)

2,64

3,00

00

(15,

000)

00

2,62

8,00

0To

tal L

and

2,64

3,00

00

(15,

000)

00

2,62

8,00

0

Non

-Spe

cial

ised

Build

ings

(Lev

el 2

)1,

266,

709

52,2

44(7

0,00

0)0

(59,

032)

1,18

9,92

0

Spec

ialis

ed B

uild

ings

(Lev

el 3

)30

,670

,360

315,

615

00

(1,0

61,6

32)

29,9

24,3

43To

tal B

uild

ings

31,9

37,0

6936

7,85

8(7

0,00

0)0

(1,1

20,6

64)

31,1

14,2

64

Tota

l Lan

d an

d Bu

ildin

gs34

,580

,069

367,

858

(85,

000)

0(1

,120

,664

)33

,742

,264

Furn

iture

and

Equ

ipm

ent

(Lev

el 3

)81

7,52

22,

482

027

6,68

0(1

05,0

34)

991,

650

Plan

t and

Equ

ipm

ent

(Lev

el 2

)4,

596,

790

1,00

9,25

4(4

15,8

72)

(1,2

67,2

58)

(516

,540

)3,

406,

375

Plan

t and

Equ

ipm

ent

(Lev

el 3

)0

00

1,05

1,30

00

1,05

1,30

0

Tota

l Pro

pert

y, P

lant

and

Equ

ipm

ent

39,9

94,3

811,

379,

595

(500

,872

)60

,722

(1,7

42,2

38)

39,1

91,5

89


Page 79 of 108

Note 6 (cont)

6PR

OPE

RTY,

PLA

NT

AND

EQU

IPM

ENT

(Con

tinue

d)

(c)

Fair

Valu

e M

easu

rem

ents

Asse

t Cla

ssFa

ir Va

lue

Hier

arch

yVa

luat

ion

Tech

niqu

eBa

sis o

f val

uatio

nDa

te o

f las

t Va

luat

ion

Inpu

ts u

sed

Land

and

Bui

ldin

gs

Free

hold

Lan

d2

Obs

erva

ble

open

mar

ket v

alue

s of

simila

r ass

ets,

adj

uste

d fo

r con

ditio

n an

d co

mpa

rabi

lity,

at t

heir

high

est

and

best

use

Inde

pend

ent v

alua

tion

June

201

4Pr

ice

per h

ecta

re /

mar

ket b

orro

win

g ra

te

Non

- Sp

ecia

lised

Bu

ildin

gs2

Obs

erva

ble

open

mar

ket v

alue

s of

simila

r ass

ets,

adj

uste

d fo

r con

ditio

n an

d co

mpa

rabi

lity,

at t

heir

high

est

and

best

use

Inde

pend

ent v

alua

tion

June

201

4Im

prov

emen

ts to

land

usin

g co

nstr

uctio

n co

sts a

nd

curr

ent c

ondi

tion

Spec

ialis

ed B

uild

ings

3Im

prov

emen

ts to

land

val

ued

usin

g co

st a

ppro

ach

usin

g de

prec

iate

d re

plac

emen

t cos

tIn

depe

nden

t val

uatio

nJu

ne 2

014

Impr

ovem

ents

to la

nd u

sing

cons

truc

tion

cost

s and

cu

rren

t con

ditio

n (le

vel 2

), re

sidua

l and

rem

aini

ng u

sefu

l lif

e as

sess

men

t (le

vel 3

)

Furn

iture

and

Equ

ipm

ent

3Co

st a

ppro

ach

usin

g de

prec

iate

d re

plac

emen

t cos

tIn

depe

nden

t val

uatio

nJu

ne 2

016

Purc

hase

cos

ts a

nd c

urre

nt c

ondi

tion

(Lev

el 2

), re

sidua

l va

lues

and

rem

aini

ng u

sefu

l life

ass

essm

ents

(Lev

el 3

) in

puts

Plan

t and

Equ

ipm

ent

Plan

t and

Equ

ipm

ent

2M

arke

t app

roac

h us

ing

rece

nt

obse

rvab

le m

arke

t dat

a fo

r sim

ilar

item

Inde

pend

ent v

alua

tion

June

201

6M

arke

t pric

e pe

r ite

m

Plan

t and

Equ

ipm

ent

3Co

st a

ppro

ach

usin

g de

prec

iate

d re

plac

emen

t cos

tIn

depe

nden

t val

uatio

nJu

ne 2

016

Purc

hase

cos

ts a

nd c

urre

nt c

ondi

tion

(Lev

el 2

), re

sidua

l va

lues

and

rem

aini

ng u

sefu

l life

ass

essm

ents

(Lev

el 3

) in

puts

Leve

l 3 in

puts

are

bas

ed o

n as

sum

ptio

ns w

ith re

gard

s to

futu

re v

alue

s and

pat

tern

s of c

onsu

mpt

ion

utili

sing

curr

ent i

nfor

mat

ion.

If th

e ba

sis o

f th

ese

assu

mpt

ions

wer

e va

ried

, the

y ha

ve th

e po

tent

ial t

o re

sult

in a

sign

ifica

ntly

hig

her o

r low

er fa

ir va

lue

mea

sure

men

t.

Durin

g th

e pe

riod

ther

e w

ere

chan

ges i

n th

e va

luat

ion

tech

niqu

es u

sed

to d

eter

min

e th

e fa

ir va

lue

ofPr

oper

ty, P

lant

and

equ

ipm

ent u

sing

leve

l 2 o

r lev

el 3

inpu

ts


Page 80 of 108

Note 7

2016

2015

$

$

7. INFRASTRUCTURE

Roads - Management Valuation 2015 - Level 3

234,795,000

234,795,000

Additions after valuation - cost

4,360,771

0


(59,245,999)

(56,383,000)

179,909,772

178,412,000

Footpaths - Management Valuation 2015 - Level 3

7,072,000

7,072,000


269,356

0


(2,069,000)

(1,859,000)

5,272,356

5,213,000

Drainage - Independent Valuation 2015 - Level 3

6,870,000

6,870,000


4,369,015

0


(1,624,348)

(1,510,000)

9,614,667

5,360,000

Parks and Reserves - Independent Valuation 2015 - Level 3 2,878,183

2,878,183


356,623

0


(1,193,631)

(1,050,200)

2,041,175

1,827,983

Other Infrastructure - Independent Valuation 2015 - Level 3 16,279,000

16,279,000


225,722

0


(5,962,692)

(5,369,000)

10,542,030

10,910,000

Depreciated Infrastructure at fair value

207,380,000

201,722,983



277,475,670

267,894,183

less Accumulated Depreciation

(70,095,670)

(66,171,200)


207,380,000

201,722,983

The fair value of infrastructure is determined at least every three years in accordance with the regulatory framework. Additions since the date of valuation are shown as cost. Given they were acquired at arms length and any accumulated depreciation reflects the usage of service potential, it is considered the recorded written down value approximates fair value. At the end of each intervening period the valuation is reviewed and, where appropriate, the fair value is updated to reflect current market conditions. This process is considered to be in accordance with Local Government (Financial Management) Regulation 17A (2) which requires infrastructure to be shown at fair value.


Page 81 of 108

Note 7 (cont)

7. I

NFR

ASTR

UCT

URE

(Con

tinue

d)

Mov

emen

ts in

Car

ryin

g Am

ount

s

The

follo

win

g re

pres

ents

the

mov

emen

t in

the

carr

ying

am

ount

s of e

ach

clas

s of i

nfra

stru

ctur

e be

twee

n th

ebe

ginn

ing

and

the

end

of th

e cu

rren

t fin

anci

al y

ear.

Bala

nce

Carr

ying

at th

eRe

valu

atio

nAm

ount

Begi

nnin

gIn

crem

ents

/De

prec

iatio

nat

the

of th

e Ye

arAd

ditio

ns(D

ispo

sals

)(D

ecre

men

ts)

(Exp

ense

)En

d of

Yea

r$

$$

$$

$

Road

s(L

evel

3)

178,

412,

000

4,36

0,77

10

(2,8

62,9

99)

179,

909,

772

Foot

path

s(L

evel

3)

5,21

3,00

026

9,35

60

(210

,000

)5,

272,

356

Drai

nage

(Lev

el 3

)5,

360,

000

4,36

9,01

50

(114

,348

)9,

614,

667

Park

s and

Res

erve

s(L

evel

3)

1,82

7,98

335

6,62

30

(143

,431

)2,

041,

175

Oth

er In

fras

truc

ture

(Lev

el 3

)10

,910

,000

225,

722

0(5

93,6

92)

10,5

42,0

30

Tota

l Inf

rast

ruct

ure

201,

722,

984

9,58

1,48

70

0(3

,924

,470

)20

7,38

0,00

1


Page 82 of 108

Note 7 (cont)

7.IN

FRAS

TRU

CTU

RE (C

ontin

ued)

(c)

Fair

Valu

e M

easu

rem

ents

Asse

t Cla

ssFa

ir Va

lue

Hier

arch

yVa

luat

ion

Tech

niqu

eBa

sis o

f val

uatio

nDa

te o

f las

t Va

luat

ion

Inpu

ts u

sed

Road

s3

Cost

app

roac

h us

ing

depr

ecia

ted

repl

acem

ent c

ost

Man

agem

ent v

alua

tion

June

201

5Co

nsrt

uctio

n co

sts a

nd c

urre

nt c

ondi

tion

(Lev

el 2

), re

sidua

l val

ues a

nd re

mai

ning

use

ful l

ife a

sses

smen

ts

(Lev

el 3

) inp

uts

Foot

path

s3

Cost

app

roac

h us

ing

depr

ecia

ted

repl

acem

ent c

ost

Man

agem

ent v

alua

tion

June

201

5Co

nsrt

uctio

n co

sts a

nd c

urre

nt c

ondi

tion

(Lev

el 2

), re

sidua

l val

ues a

nd re

mai

ning

use

ful l

ife a

sses

smen

ts

(Lev

el 3

) inp

uts

Drai

nage

3Co

st a

ppro

ach

usin

g de

prec

iate

d re

plac

emen

t cos

tIn

depe

nden

t val

uatio

nJu

ne 2

015

Cons

rtuc

tion

cost

s and

cur

rent

con

ditio

n (L

evel

2),

resid

ual v

alue

s and

rem

aini

ng u

sefu

l life

ass

essm

ents

(L

evel

3) i

nput

s

Park

s and

Res

erve

s3

Cost

app

roac

h us

ing

depr

ecia

ted

repl

acem

ent c

ost

Inde

pend

ent v

alua

tion

June

201

5Co

nsrt

uctio

n co

sts a

nd c

urre

nt c

ondi

tion

(Lev

el 2

), re

sidua

l val

ues a

nd re

mai

ning

use

ful l

ife a

sses

smen

ts

(Lev

el 3

) inp

uts

Oth

er In

fras

truc

ture

3Co

st a

ppro

ach

usin

g de

prec

iate

d re

plac

emen

t cos

tIn

depe

nden

t val

uatio

nJu

ne 2

015

Cons

rtuc

tion

cost

s and

cur

rent

con

ditio

n (L

evel

2),

resid

ual v

alue

s and

rem

aini

ng u

sefu

l life

ass

essm

ents

(L

evel

3) i

nput

s

Leve

l 3 in

puts

are

bas

ed o

n as

sum

ptio

ns w

ith re

gard

s to

futu

re v

alue

s and

pat

tern

s of c

onsu

mpt

ion

utili

sing

curr

ent i

nfor

mat

ion.

If th

e ba

sis o

f th

ese

assu

mpt

ions

wer

e va

ried

, the

y ha

ve th

e po

tent

ial t

o re

sult

in a

sign

ifica

ntly

hig

her o

r low

er fa

ir va

lue

mea

sure

men

t.

Durin

g th

e pe

riod

ther

e w

ere

no c

hang

es in

the

valu

atio

n te

chni

ques

use

d to

det

erm

ine

the

fair

valu

e of

infr

astr

uctu

re u

sing

leve

l 3 in

puts

.


Page 83 of 108

Note 8

2016

2015

$

$

8.

TRADE AND OTHER PAYABLES

Current

Sundry Creditors

499,013

483,745

GST Payable

30,632

73,225

Accrued Interest on Debentures

12,726

14,493

Accrued Expenses

15,914

430,942

Accrued Salaries and Wages

22,928

0

581,213

1,002,405

Note 9 9. LONG-TERM BORROWINGS

Current

Secured by Floating Charge

Debentures

213,028

199,104

213,028

199,104

Non-Current

Secured by Floating Charge

Debentures

525,195

708,214

525,195

708,214

Additional detail on borrowings is provided in Note 18.

Note 10 10. PROVISIONS

Current

Provision for Annual Leave

307,329

297,238

Provision for Long Service Leave

216,822

204,847

524,151

502,085

Non-Current

Provision for Long Service Leave

82,086

97,677

82,086

97,677


Page 84 of 108

Note 11

11 RESERVES - CASH/INVESTMENT BACKED

Actual Actual Actual Actual

2016 2016 2016 2016

Opening Balance

Transfer to Transfer (from)

Closing Balance

$ $ $ $

Plant Replacement Reserve 855,811 16,904 (296,362) 576,353

Building Renewal Reserve 588,052 274,537

862,589

Rubbish Reserve 351,029 6,934

357,962

Community Centre reserve 360,380 13,118

373,498

Television Reserve 90,458 1,787

92,244

Computer Reserve 52,776 1,042

53,818

Caravan Parks Reserve 346,158 52,364

398,522

Land Development Reserve 65,405 1,292

66,697

Parking Requirements Reserve (Lot 1154 Sandpiper Street) 10,557 209

10,765

Parks and Recreational Grounds Development Reserve (Seagate Estate) 348,297 6,880

355,176

Sport and Recreation Reserve 130,280 52,573

182,854

Admin Office Extension Reserve 425 1

426

Landscaping Reserve (Lot 1154 Sandpiper Street) 2,451 48

2,499

Jetty Reserve 336,660 6,650 (66,751) 276,558

Aerodrome Reserve 56,141 23,551

79,692

Jurien Bay City Centre Enhancement Project (Supertowns) Reserve 3,829,365 64,809 (3,399,776) 494,397

Staff Attraction & Incentive Reserve 193,990 3,832

197,822

Public Open Space Renewal Reserve 557,373 182,342

739,715

Infrastructure Renewal Reserve 937,591 118,519

1,056,110

Public Open Space Construction Reserve 82,647 1,632

84,279

Infrastructure Construction Reserve

0

Building Construction Reserve 107,563 2,125

109,687

Leave Reserve 199,479 3,939

203,419

Sewer Stage 1B Reserve 1,065,231 18,618 (1,062,051) 21,798

10,568,117 853,706 (4,824,941) 6,596,882

All of the reserve accounts are supported by money held in financial institutions and match the amount shown as restricted cash in Note 3 to this financial report.


Page 85 of 108

Note 11 (cont)

11 RESERVES - CASH/INVESTMENT BACKED

In accordance with council resolutions in relation to each reserve account, the purpose for which the reserves are set aside and their anticipated date of use are as follows:

Name of Reserve

Anticipated date of use

Purpose of the reserve

Plant Replacement Reserve Ongoing

- to be used in order to assist in the purchase of major items of plant.

Building Renewal Reserve Ongoing

- to fund capital renewal of buildings and associated assets as guided by the Building Asset Management Plan.

Rubbish Reserve Ongoing

- to be used to fund establishing, enhancing, rehabilitation or any other activities associated with new and existing landfill or waste site

Community Centre reserve Ongoing

- to be used to fund capital construction costs and major maintenance restoration / preservation costs to the community recreation centres located in the four towns.

Television Reserve Ongoing

- to be used to fund the provision of new or improved television rebroadcasting facilities throughout the shire.

Computer Reserve Ongoing - to be used for the future purchase of computers.

Caravan Parks Reserve Ongoing

- to be used to fund improvements, other works and the promotion of caravan parks and their surrounds. To also fund planning, feasibility and establishment of new caravan parks.

Land Development Reserve Ongoing

- For the purpose of funding land development in the townsites of Dandaragan and Badgingarra.

Parking Requirements Reserve (Lot 1154 Sandpiper Street) Ongoing

- to fund future parking requirements in the Shire of Dandaragan in the vicinity of Lot 1154 Sandpiper Street, Jurien Bay as separately identified.

Parks and Recreational Grounds Development Reserve (Seagate Estate) Ongoing

- to fund the future purchase of land or development of parks and recreation grounds in the locality of Seagate Estates as separately identified or with Ministerial approval, for the improvement or development of parks and recreation.

Sport and Recreation Reserve Ongoing

- To fund community sporting groups requests in accordance with the Shire of Dandaragan's Recreation Plan.

Admin Office Extension Reserve 2016/2017

- To fund investigation, design and capital costs of future office extensions.

Landscaping Reserve (Lot 1154 Sandpiper Street) Ongoing

- to fund future landscaping requirements in the Shire of Dandaragan in the vicinity of Lot 1154 Sandpiper Street, Jurien Bay as separately identified.

Jetty Reserve 2016/2017

- to fund design, feasibility and construction relating to the jetty project

Aerodrome Reserve Ongoing

- to be used for renewal, major maintenance, expansion or relocation of Shire of Dandaragan's airstrips and aerodromes


Page 86 of 108

Note 11 (cont)

Jurien Bay City Centre Enhancement Project (Supertowns) Reserve 2016/2017

- to be used to fulfilling the requirements, outcomes and achievables identified in the Financial Assistance Agreement for the Supertowns Development Project Fund – Jurien Bay City Centre Enhancement Project

Staff Attraction & Incentive Reserve Ongoing

- to be used to fund staff attraction and incentive programs and processes, such as, but not limited to additional superannuation contributions, bonuses, rental subsidies and utility subsidies

Public Open Space Renewal Reserve Ongoing

- to fund capital renewal of public open space and associated assets as guided by the Public Open Space Asset Management Plan

Infrastructure Renewal Reserve Ongoing

- to fund capital renewal of infrastructure and associated assets as guided by the Infrastructure Asset Management Plan.

Public Open Space Construction Reserve Ongoing

- to fund capital construction and/or purchase of public open space and associated assets.

Infrastructure Construction Reserve Ongoing

- to fund capital construction and/or purchase of infrastructure and associated assets.

Building Construction Reserve Ongoing

- to fund capital construction and/or purchase of infrastructure and other associated assets.

Leave Reserve Ongoing

- to fund annual leave and long service leave entitlements.

Sewer Stage 1B Reserve 2016/2017

- to be used to fulfilling the requirements, outcomes and achievables identified in the Financial Assistance Agreement for the Sewer Stage 1B Project


Page 87 of 108

Note 12

Actual 2015/2016

Budget 2015/2016

Actual 2014/2015

12. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash

Cash and Cash Equivalents 8,843,273

5,377,631 13,612,925

(b) Reconciliation of Net Cash Provided by Operating Activities to Net Result

Net Result (77,264) 930,204 3,684,576 (Increase)/Decrease in Receivables 693,041 526,000 (430,564) Grants and Subsidies for the development of assets (3,598,932) (5,062,100) (5,106,974) (Profit)/Loss on Disposal of Assets 116,653 212,648 164,298 (Increase)/Decrease in Stock 903 (0) (5,028) Depreciation 5,677,356 5,026,812 3,812,044 Fair Value adjustment to asset through profit & loss (0)

819,436

Increase/Decrease in Payables and Provisions (414,717) (202,444) 582,243 Net Cash provided by Operating Activities 2,397,040 1,431,120 3,520,031

(c) Undrawn Borrowing Facilities Credit Standby Arrangements Bank Overdraft limit 350,000

350,000

Bank Overdraft at Balance Date 0

0 Credit Card limit 21,000

21,000

Credit Card Balance at Balance Date 2,437

1,332 Total Amount of Credit Unused 373,437

364,332

Loan Facilities Loan Facilities - Current 213,028

214,121

Loan Facilities - Non-Current 525,195

907,318 Total Facilities in Use at Balance Date 738,223

1,121,439

Unused Loan Facilities at Balance Date 0

0

For the purposes of the cash flow statement, cash includes cash on hand and cash equivalents net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the balance sheet as follows:


Page 88 of 108

Note 13

2016

2015

13. CAPITAL AND LEASING COMMITMENTS $

$

(a) Operating Lease Commitments

Non-cancellable operating leases

contracted for but not capitalised in

the accounts.

Payable:

- not later than one year

29,621

18,500

- later than one year but not later than five years 87,736

49,334

- later than five years

0

0

117,357

67,835

(b) Capital Expenditure Commitments

Contracted for:

- plant & equipment purchases

-

-

- capital expenditure projects

556,369

381,117

Payable:

- not later than one year

556,369

381,117

Note 14

2016

2015

$

$

14. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

Governance

5,338,353

5,579,935


0

0


1,846,101

1,794,562

Health

822,887

881,509

Community Amenities

18,028,142

18,517,343


17,309,000

17,167,983

Transport

193,080,037

188,237,684

Economic Services

1,514,079

880,637

Other Property and Services

8,632,990

8,657,710

246,571,589

241,717,364


Page 89 of 108

Note 15

2016 2015 201415. FINANCIAL RATIOS

Current Ratio 3.50 1.75 1.43 Asset Sustainability Ratio 0.97 1.20 1.31 Debt Service Cover Ratio 8.60 9.77 5.23 Operating Surplus Ratio* (0.43) (0.18) (0.18) Own Source Revenue Ratio 0.64 0.65 0.76

The above ratios are calculated as follows:

Current Ratio current assets minus restricted current assetscurrent liabilities minus liabilities associated

with restricted assets

Asset Sustainability Ratio capital renewal and replacement expendituredepreciation expense

Debt Service Cover Ratio annual operating surplus before interest and depreciationprincipal and interest

Operating Surplus Ratio operating revenue minus operating expenseown source operating revenue

Own Source Revenue Ratio own source operating revenueoperating expense


Page 90 of 108

Note 16

16. RESTRICTED ASSETS

Funds held at balance date over which the Municipality has no control and are not included inthe financial statements are as follows:

TRUST Balance Balance30-Jun-15 Inwards Outwards 30-Jun-16

$ $ $ $

Housing Bonds 250 250 Seagate Estate 37,300 37,300 Dust Bond 50,007 50,007 Fire Fighting Facility 5,000 5,000 Housing Relocation Bond 4,000 4,000 Footpath Deposit 2,600 2,600 Burial Plots 1,869 450 2,319 Other Development Bonds 19,000 19,000 Dandaragan Recreation Fund 9,500 9,500 Nomination Deposits - - Unclaimed monies 4,476 4,476 Development Assessment Panel Fee - BSL 639 41,248 38,887 3,000 BCITF - Scheme Amendment Deposit 1,000 1,000 KidsSport - 480 480

135,641 42,178 38,887 138,932

RESTRICTED ASSETS Balance Balance30-Jun-15 Inwards Outwards 30-Jun-16

$ $ $ $

Regional Strategy 13,540 13,540 DOLA Stage 1 Fencing & Footpaths, Cervantes 41,401 41,401 Landcorp Cash in Lieu POS 162,500 162,500 $500 x 11 Lot Contrib. Mtce of Canover Rd Stage 2 15,900 15,900 Footpath - Foreshore Management Plan 20,814 20,814 Lot 1146 Sandpiper Street 2,000 2,000 Retention Wormall Civil 148,050 148,050 Retention DJ MacCormick Stowns 39,078 39,078 Lot 290 Canover 5,000 5,000 Interest 59,550 59,550

320,706 187,128 - 507,834

Movement

Movement


Page 91 of 108

Note 17

17. DISPOSALS OF ASSETS - 2015/2016 FINANCIAL YEAR

The following assets were disposed of during the year.

Net Book Value Sale Price Profit (Loss)

Actual Budget Actual Budget Actual Budget

$ $ $ $ $ $

Class of Asset

Plant & Machinery

Grader 66,000 65,000 138,676 142,000 (72,676) (77,000)

Water Tanker 5,025 5,000 15,000 15,000 (9,975) (10,000)

Tractor 5,000 11,818 20,000 20,000 (15,000) (8,182)

Pig Trailer 0 5,000 12,000 0 (7,000)

Loader 0 5,000 12,500 0 (7,500)

Ride On Mower 3,000 3,000 3,233 3,300 (233) (300)

Light Vehicle CEO 31,818 29,091 38,074 37,000 (6,256) (7,909)

Light Vehicle EMI 28,182 25,455 29,071 31,000 (889) (5,545)

Light Vehicle EMCCS 28,182 24,545 30,358 31,000 (2,177) (6,455)

Light Vehicle MPS 25,455 21,818 29,989 29,500 (4,535) (7,682)

Light Vehicle MBS 25,455 21,818 29,235 29,000 (3,781) (7,182)

Light Vehicle EHO 24,545 21,818 28,827 29,500 (4,281) (7,682)

Light Vehicle Utility 5,455 2,000 12,022 11,000 (6,567) (9,000)

Light Vehicle Utility 7,273 2,000 11,386 11,500 (4,113) (9,500)

Road Patrol Truck 18,182 20,000 30,000 32,711 (11,818) (12,711)

7 Yard Truck 0 15,000 44,000 0 (29,000)

Land

Lot 6 Dandaragan Road 15,000 15,000

Building

Lot 6 Dandaragan Road 85,000 0 59,352 0 25,648 0

373,570 278,363 490,224 491,011 (116,653) (212,648)


Page 92 of 108

Note 18

18.I

NFO

RMAT

ION

ON

BO

RRO

WIN

GS

(a)

Debe

ntur

e Re

paym

ents

Loan

Det

ails

Amou

nt

New

In

tere

st R

epay

men

tsPr

inci

pal

Out

stan

ding

Loan

sAc

tual

Budg

etAc

tual

Budg

etO

utst

andi

ngN

o.1

July

201

520

15/2

016

15/1

615

/16

15/1

615

/16

30 Ju

ne 2

016

Self

Supp

ortin

g Lo

ans

113

Adva

nce

Dand

arag

an16

,232

904

920

4,29

7

4,29

7

11,9

35

11

4Ce

rvan

tes C

omm

unity

Clu

b72

,415

4,96

4

5,03

3

14,1

36

14

,136

58,2

79

13

0Ju

rien

Bow

ling

Club

14

9,87

4

7,17

9

8,05

6

18,4

07

18

,407

131,

467

13

1Ju

rien

Bow

ling

Club

-

30,0

00

40

2

38

1

2,

824

2,

833

27

,176

Oth

er L

oans

127

Jurie

n Ad

min

Cen

tre

(ref

inan

ce 1

15)

453,

687

24

,432

24,4

32

54

,668

54,6

68

39

9,01

9

128

Jurie

n Je

tty

215,

110

9,

955

9,

955

10

4,76

3

104,

763

11

0,34

6

129

Heat

on S

tree

t Und

ergr

ound

Pow

er-

-

-

-

Ce

rvan

tes C

omm

unity

Cen

tre

-

-

Tota

l90

7,31

8

30,0

00

47

,836

48,7

76

19

9,09

5

199,

104

73

8,22

3

Com

mun

ity G

roup

Cas

h Ad

vanc

eAm

ount

N

ew

Prin

cipa

lO

utst

andi

ngLo

ans

Actu

alBu

dget

Out

stan

ding

1 Ju

ly 2

015

2015

/201

6-

-

30

June

201

6

Self

Supp

ortin

gCe

rvan

tes B

owlin

g Cl

ub20

,760

2,07

6

5,00

0

15,7

60

Tota

l-

20,7

60

-

-

2,

076

5,

000

15

,760

GRA

ND

TOTA

L90

7,31

8

50,7

60

47

,836

48,7

76

20

1,17

1

204,

104

75

3,98

3

Heat

on S

tree

t Und

ergr

ound

Pow

er is

par

tly fi

nanc

ed b

y a

Serv

ice

Char

geJu

rien

Recr

eatio

nal J

etty

is fi

nanc

ed b

y a

Spec

ified

Are

a Ra

teAl

l oth

er lo

an re

paym

ents

wer

e fin

ance

d by

gen

eral

pur

pose

reve

nue.

(b)

Ove

rdra

ft

Coun

cil e

stab

lishe

d an

ove

rdra

ft fa

cilit

y of

$35

0,00

0 in

200

1/02

to a

ssist

with

shor

t ter

m li

quid

ity re

quire

men

ts.

The

bala

nce

of th

e ba

nk o

verd

raft

at 1

July

201

5 an

d 30

June

201

6 w

as $

Nil.

Prin

cipa

l Rep

aym

ents

Prin

cipa

l Rep

aym

ents


Page 93 of 108

Note 19

19a

RATI

NG

INFO

RMAT

ION

- 20

15/2

016

FIN

ANCI

AL Y

EAR

RATE

TYP

ERa

te in

Num

ber

Rate

able

Budg

etBu

dget

Budg

etBu

dget

$of

Valu

eRa

teIn

terim

Back

Tota

lRa

teIn

terim

Back

Tota

lPr

oper

ties

Reve

nue

Rate

Rate

sRe

venu

eRe

venu

eRa

teRa

tes

Reve

nue

Gen

eral

Rat

eGe

nera

l GRV

0.07

5600

1,83

527

,614

,498

2,08

7,65

6-

-2,

087,

656

2,09

0,68

022

,187

-2,

112,

867

Vaca

nt R

esid

entia

l - G

RV0.

1914

0068

53,

653,

810

699,

339

--

699,

339

699,

290

12,0

87-

-

687,

203

Vaca

nt R

ural

Res

iden

tial G

RVU

V0.

0074

7768

633

4,84

0,50

0

2,50

3,60

3

-

-2,

503,

603

2,50

3,60

3

2,

574

-

-

2,50

1,02

9U

V - M

inin

g0.

0074

772

736,

932

5,51

0

5,51

05,

510

5,

510

Sub-

Tota

l3,

208

36

6,84

5,74

0

5,29

6,10

8

-

-

5,

296,

108

5,29

9,08

2

7,

527

-

5,30

6,60

9

Min

imum

Rat

esGe

nera

l GRV

627

$

187

1,29

3,25

4

117,

249

-

-11

7,24

911

7,24

9

--

117,

249

Vaca

nt R

esid

entia

l - G

RV62

7$

16

947

5,88

0

10

5,96

3

--

105,

963

105,

963

-

-10

5,96

3Va

cant

Rur

al R

esid

entia

l GRV

--

0-

-0

UV

627

$

502,

440,

400

31

,350

--

31,3

5031

,350

--

31,3

50U

V - M

inin

g78

5$

87

1,64

8,12

5

68,2

95

-

-68

,295

67,5

10

-

-67

,510

Sub-

Tota

l49

35,

857,

659

322,

857

00

322,

857

322,

072

00

322,

072

Ex G

ratia

Rat

es1,

188

1,20

41,

204

3,70

137

2,70

3,39

95,

618,

965

5,62

0,15

35,

621,

154

5,62

9,88

5Di

scou

nts (

refe

r not

e 21

)(1

90,0

00)

(208

,322

)

Tota

l as p

er R

ate

Sett

ing

Stat

emen

t5,

430,

153

5,42

1,56

3Sp

ecifi

ed A

rea

Rate

(ref

er to

not

e 20

b)11

4,71

911

5,31

3In

stal

men

t Adm

in F

ee13

,000

12,7

00

Tota

l as p

er In

com

e St

atem

ent

5,55

7,87

25,

549,

576

2015

/16

BUDG

ET20

15/1

6 AC

TUAL


Page 94 of 108

Note 19 (cont)

19b RATING INFORMATION - 2015/2016 FINANCIAL YEAR

Information on Surplus/(Deficit) Brought Forward

Description 1 July 2015 Movement Closing Balance

NET CURRENT ASSETS

Composition of Estimated Net Current Asset Position

CURRENT ASSET

Cash - Unrestricted 3,044,809 (798,418) 2,246,391

Cash - Restricted 10,568,117 (3,971,235) 6,596,882

Receivables 1,135,143 (657,193) 477,950

Inventories 26,466 (903) 25,563

14,774,534 (5,427,748) 9,346,786

LESS: CURRENT LIABILITIES

Payables and Provisions (483,745) (15,268) (499,013)

14,290,789 (5,443,016) 8,847,773

Less: Restricted Cash - Reserves 10,568,117 (3,971,235) 6,596,882

NET CURRENT ASSET POSITION 3,722,672 (1,471,781) 2,250,891

30 June 2015 Carried Forward Surplus (Deficit) $ 1,145,560

1 July 2015 Brought Forward Surplus (Deficit) $ 3,722,672

30 June 2016 Carried Forward Surplus (Deficit) $ 2,250,891

There was no difference between the Surplus/(Deficit) 1 July 2015 Brought Forward position used in the 2016 audited financial report and the Surplus/(Deficit) Carried Forward position as disclosed in the 2015 audited financial report.


Page 95 of 108

Note 20

20a.

SPEC

IFIE

D AR

EA R

ATE

- 201

5/16

FIN

ANCI

AL Y

EAR

Rate

inBa

sis

Rate

able

Rate

Budg

etAp

plie

dBu

dget

$of

Valu

eRe

venu

eRa

teto

Cos

tsAp

plie

dRa

te$

$Re

venu

e$

to C

osts

$

$Je

tty

- Rat

e0.

0055

94GR

V20

,507

,076

114,

719

114,

719

114,

719

114,

719

- Int

erim

Rat

e59

40

594

0- B

ack

Rate

115,

313

114,

719

115,

313

114,

719

The

spec

ified

are

a ra

te is

for d

esig

n, fe

asib

ility

and

con

stru

ctio

n re

latin

g to

the

new

jett

y an

d fo

resh

ore

deve

lopm

ent a

t Dob

byn

Park

- Ju

rien

Bay

The

proc

eeds

of t

he ra

te a

re a

pplie

d to

the

cost

of d

esig

n co

ncep

t, pl

ans,

cos

ting

and

cons

truc

iton.


Page 96 of 108

Note 21

21. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS- 2015/2016 FINANCIAL YEAR

Type Disc % Total BudgetCost/ Cost/Value Value

$ $General Rates Discount 5.00% 208,322 190,000

RatesCentral West Men's Shed Write-Off 3,024.00 3,024

Civic Centre HireJurien Bay District High School Waiver 6,220.00 6,220

Jurien Bay Airstrip LandingsMr P M Lonnon Waiver 24,958.37Pearce Flying Club Inc Waiver 606.32R F D S Western Operations - WA Waiver 316.94Najara Enterprises P/L Waiver 137.80Royal Aero Club of WA Inc Waiver 124.02Geraldton Air Charter P/L Waiver 96.46Back Nominees P/L Waiver 82.68Lloyd Helicopters P/L - In Administration Waiver 82.68Mr L Northey Waiver 82.68Mr H L Hamersley Waiver 68.90All Sky Helicopters P/L Waiver 55.12Skydive Express P/L Waiver 55.12Interair P/L Waiver 55.12Kelmac Aviation P/L Waiver 55.12Rotorwest P/L Waiver 55.12Aviair P/L Waiver 55.12Curtin Flying Club Inc Waiver 41.34Groundwater Consulting Services P/L Waiver 41.34Mr C O Hanson Waiver 41.34Mr D Joice Waiver 41.34Mr G Poett Waiver 41.34Mr P Bess Waiver 41.34Mr W G White Waiver 41.34Aeropower P/L Waiver 27.56Air Australia International P/L Waiver 27.56Chrishine Nominees P/L Waiver 27.56Corsaire P/L Waiver 27.56Fortescue Helicopters P/L Waiver 27.56Jandakot Flight Centre P/L Waiver 27.56L E & A Coppin Waiver 27.56Mr A Dean Waiver 27.56Mr A Dudgeon Waiver 27.56Mr B J Norrish Waiver 27.56


Page 97 of 108

Note 21 (cont)

21. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS- 2015/2016 FINANCIAL YEAR

Type Disc % Total BudgetCost/ Cost/Value Value

$ $Mr E Croft Waiver 27.56Mr T Moore Waiver 27.56Mr W H Van Ast Waiver 27.56Shine Air P/L Waiver 27.56Togarn P/L Waiver 27.56VH-JOK P/L Waiver 27.56Bunbury Aero Club (Inc) Waiver 13.78C T L Flying Group Waiver 13.78Cloud Dancer Pilot Training P/L Waiver 13.78Cumbertronics P/L Waiver 13.78D S L Contracting P/L Waiver 13.78Datatec Australia P/L Waiver 13.78Deba International P/L Waiver 13.78Dr S N Clarke Waiver 13.78Dunn Aviation Aust P/L Waiver 13.78Erickson Air-Crane Inc Waiver 13.78H T Tan & J A Elliot-Tan Waiver 13.78Helibits P/L Waiver 13.78I L H A P/L Waiver 13.78Longbow Geological Services P/L Waiver 13.78Mr A Hyde Waiver 13.78Mr C Brady Waiver 13.78Mr C D Brown Waiver 13.78Mr D Cullen Waiver 13.78Mr G Hood Waiver 13.78Mr J Murphy Waiver 13.78Mr M Laufer Waiver 13.78Mr R E Naef Waiver 13.78Mt Gallipoli P/L Waiver 13.78Nantay P/L Waiver 13.78Northam Air Services P/L Waiver 13.78Outline Global P/L Waiver 13.78Robi44 Investments P/L Waiver 13.78Stamford Park Investments P/L Waiver 13.78University Flying Club Inc (WA) Waiver 13.78 28,018

A discount on rates is granted to all who pay their rates in full within 35 days of the date of serviceappearing on the rate notice.

Rates for 3 Madrid Street, Cervantes are written-off for the following reasons;i. the tenure of the land being crown land would be otherwise exempt from rating had the Central West Men’s Shed not taken up tenancyii. the Central West Men’s Shed is a non for profit community group with limited income earning potential; andiii. the purpose of a Men’s Shed aligns with the Shire of Dandaragan’s strategic plan

Hire fees for rooms at the Civic Centre are waived for educational purposes

Landing fees at the Jurien Bay airstrip were waive for 2015/2016


Page 98 of 108

Note 22

22. INTEREST CHARGES AND INSTALMENTS - 2015/2016 FINANCIAL YEAR

Interest Revenue Budgeted

Rate $ Revenue

% $

Interest on Unpaid Rates 10.00% 25,060 27,000

Interest on Instalments Plan 5.00% 15,233 14,000

Interest on ESL

11.00% 850 0

Interest on Deferred Pensioner 737 1,000

41,879 42,000

Charges on Instalment Plan

12,700 13,000

Ratepayers had the option of paying rates in four equal instalments, due;

Friday, 25 September 2015

Wednesday, 25th November 2015

Monday, 25 January 2016

Tuesday, 29 March 2016

Administration charges and interest applied for the final three instalments.


Page 99 of 108

Note 23

2016

2015

23. FEES & CHARGES

$

$

Governance

113

320


11,190

20,271


311,063

283,583

Health

11,169

8,101

Community Amenities

1,102,559

1,329,839

Recreation & Culture

203,262

20,481

Transport

10,424

4,808

Economic Services

192,831

179,778

Other Property & Services

85,524

64,500

1,928,134

1,911,681

There were no changes during the year to the amount of the fees or charges detailed in the original budget.


Page 100 of 108

Note 24

24. GRANT REVENUE

2016

2015

$

$

By Nature and Type:

Grants and Subsidies - operating 1,143,498

2,869,161

Grants and Subsidies - non-operating 3,598,932

5,106,974

4,742,430

7,976,136

By Program:

General Purpose Funding 757,735

2,427,434

Law, Order, Public Sector 79,722

638,565

Health

0

455

Education and Welfare 0

10,000

Community Amenities

20,000

1,062,051

Recreation and Culture 297,500

552,743

Transport

3,565,355

3,284,888

Economic Services

22,118

0

4,742,430

7,976,136

Note 25

2016 2016 2015

25. COUNCILLORS’ REMUNERATION

$ Budget $

$

The following fees, expenses and allowances were

paid to council members and/or the president.

Councillor Meeting Fees

126,056 127,720 127,720

President Meeting Fees

24,384 24,720 16,018

President Allowance

11,837 12,000 8,003

Deputy President Allowance

2,959 3,000 3,000

Travelling Expenses

18,325 25,000 26,262

Technology Allowance

9,003 9,000 6,455

Telecommunications Allowance

4,327 4,500 4,250

196,892 205,940 191,708


Page 101 of 108

Note 26

2016

2015

26. REVALUATION SURPLUS $

$

Revaluation surplus have arisen on

revaluation of the following classes of

non-current assets;

(a) Furniture and Equipment

Opening Balance 400,366

400,366

Revaluation Increment 276,680

0

Revaluation Decrement 0

0

677,046

400,366

(b) Plant and Equipment

Opening Balance 813,172

813,172

Revaluation Increment 0

0

Revaluation Decrement -215,958

0

597,214

813,172

(c) Land

Opening Balance 1,883,204

1,883,204


0


0

1,883,204

1,883,204

(d) Building


13,672,369


0


0

13,672,369

13,672,369

(e) Infrastructure Roads


0


10,476,118


0

10,476,118

10,476,118

(f) Infrastructure Drainage


0


3,690,258


0

3,690,258

3,690,258


Page 102 of 108

Note 26 (cont)

(g) Infrastructure Footpaths


0


3,862,146


0

3,862,146

3,862,146

(h) Infrastructure Other


0


7,193,984


0

7,193,984

7,193,984

TOTAL ASSET REVALUATION SURPLUS 42,052,339

41,991,617

Note 27

27. EMPLOYEE NUMBERS

2016

2015

The number of full-time equivalent

employees at balance date

48

47

Note 28

28. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Council did not participate in any trading undertakings

or major trading undertakings during 2015 / 2016


Page 103 of 108

Note 29 29. FINANCIAL RISK MANAGEMENT

Carrying Value

Fair Value

2016

2015

2016

2015

$

$

$

$

Financial Assets

Cash and cash equivalents 8,843,273

13,612,925

8,843,273

13,612,925

Receivables 790,583

1,474,605

790,583

1,474,605

9,633,856

14,396,319

9,633,856

14,396,319

Financial Liabilities

Payables

581,213

1,002,406

581,213

1,002,406

Borrowings 738,223

907,318

738,223

907,318

1,319,436

1,476,110

1,319,436

1,371,851

Council’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and interest rate risk. The Council’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council. Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk. Financial risk management is carried out by the finance area under policies approved by the Council. The Council held the following financial instruments at balance date:

Fair value is determined as follows: • Cash and Cash Equivalents, Receivables, Payables – estimated to the carrying value which approximates net market value. • Borrowings, Held-to-Maturity Investments – estimated future cash flows discounted by the current market interest rates applicable to assets and liabilities with similar risk profiles. • Financial Assets at Fair Value through profit and loss, Available for Sale Financial Assets – based on quoted market prices at the reporting date or independent valuation.


Page 104 of 108

Note 29 (cont)

29. FINANCIAL RISK MANAGEMENT (Continued) (a) Cash and Cash Equivalents

30-Jun-16

30-Jun-15

$

$

Impact of a 1% (+) movement in interest rates on cash

and investments:

- Equity

88,433

136,129

- Income Statement

88,433

136,129

Council’s objective is to maximise its return on cash and investments whilst maintaining an adequate level of liquidity and preserving capital. The finance area manages the cash and investments portfolio with the assistance of independent advisers (where applicable). Council has an investment policy and the policy is subject to review by Council. The major risk associated with investments is price risk – the risk that the capital value of investments may fluctuate due to changes in market prices, whether these changes are caused by factors specific to individual financial instruments of their issuers or factors affecting similar instruments traded in a market. Cash and investments are also subject to interest rate risk – the risk that movements in interest rates could affect returns. Another risk associated with cash and investments is credit risk – the risk that a contracting entity will not complete its obligations under a financial instrument resulting in a financial loss to Council. Council manages these risks by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees. Council also seeks advice from independent advisers (where applicable) before placing any cash and investments.


Page 105 of 108

Note 29 (cont)

29. FINANCIAL RISK MANAGEMENT (Continued) (b) Receivables

30-Jun-16

30-Jun-15

Percentage of Rates and Annual Charges

- Current

0.14%

0.00%

- Overdue

99.86%

100.00%

Percentage of Other Receivables

- Current

72.80%

99.25%

- Overdue

27.20%

0.75%

Council’s major receivables comprise rates and annual charges and user charges and fees. The major risk associated with these receivables is credit risk – the risk that the debts may not be repaid. Council manages this risk by monitoring outstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date through incentives. Credit risk on rates and annual charges is minimised by the ability of Council to recover these debts as a secured charge over the land – that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates and annual charges at higher than market rates, which further encourages payment. The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance. The profile of the Council’s credit risk at balance date was:


Page 106 of 108

Note 29 (cont)

29.F

INAN

CIAL

RIS

K M

ANAG

EMEN

T (C

ontin

ued)

(c)

Borr

owin

gs

The

follo

win

g ta

bles

set o

ut th

e ca

rryi

ng a

mou

nt, b

y m

atur

ity, o

f the

fina

ncia

l ins

trum

ents

exp

osed

to in

tere

st ra

te ri

sk:

Wei

ghte

dAv

erag

eEf

fect

ive

<1 y

ear

>1<2

yea

rs>2

<3 y

ears

>3<4

yea

rs>4

<5 y

ears

>5 y

ears

Tota

lIn

tere

st R

ate

$$

$$

$$

$%

Year

End

ed 3

0 Ju

ne 2

016

Borr

owin

gs

Fixe

d Ra

teDe

bent

ures

110,

346

11,9

3558

,279

27,1

7653

0,48

673

8,22

25.

43%

Wei

ghte

d Av

erag

e E

ffect

ive

Inte

rest

Rat

e5.

26%

5.96

%7.

20%

2.68

%5.

40%

Aver

age

Effe

ctiv

e<1

yea

r>1

<2 y

ears

>2<3

yea

rs>3

<4 y

ears

>4<5

yea

rs>5

yea

rsTo

tal

Inte

rest

Rat

e$

$$

$$

$$

%Ye

ar E

nded

30

June

201

5

Borr

owin

gs

Fixe

d Ra

teDe

bent

ures

14,2

6121

5,11

016

,232

72,4

1563

3,56

195

1,57

95.

42%

Wei

ghte

d Av

erag

e E

ffect

ive

Inte

rest

Rat

e5.

14%

5.26

%5.

96%

7.20

%5.

27%

Borr

owin

gs a

re a

lso

subj

ect t

o in

tere

st ra

te ri

sk –

the

risk

that

mov

emen

ts in

inte

rest

rate

s co

uld

adve

rsel

y af

fect

fund

ing

cost

s.

Cou

ncil

man

ages

this

risk

by

borr

owin

g lo

ng te

rm a

nd fi

xing

the

inte

rest

rate

to th

e si

tuat

ion

cons

ider

ed th

e m

ost a

dvan

tage

ous

at

the

time

of n

egot

iatio

n.


Page 107 of 108

Supplementary Ratio Information

SHIRE OF DANDARAGAN SUPPLEMENTARY RATIO INFORMATION

RATIO INFORMATION

The following information relates to those ratios which only require attestation they have been checked and are supported by verifiable information. It does not form part of the audited financial report

2016

2015

2014

Asset Consumption Ratio 0.77

0.78

0.70 Asset Renewal Funding

Ratio 1.79

2.42

1.80

The above ratios are calculated as follows:

Asset Consumption Ratio depreciated replacement cost of assets

current replacement cost of depreciated assets

Asset Renewal Funding Ratio NPV of planned capital renewals over 10 years

NPV of required capital expenditure over 10 years

ANNUAL REPORT 2015/16 - Shire of Dandaragan report 2015/16 page 2 of 108 table of contents...

Documents

Transcript of ANNUAL REPORT 2015/16 - Shire of Dandaragan report 2015/16 page 2 of 108 table of contents...