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MU PAKER M LAND JOONDALUP JOONDALUP WUNDOWIE O MORLE Y EY PERTH STIRLING NGT CANNIN GT TON FREMANTLE K Kala mu Belmont Ba ayswater Bay r RMADALE ARM QUINNS ROCK nd ndean assen B Ba ssend 05 / 06 ANNUAL REPORT Eastern Metropolitan Regional Council

2005/2006 EMRC Annual Report

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2005/2006 EMRC Annual Report

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Page 1: 2005/2006 EMRC Annual Report

MU

PAKERM LAND

JOONDALUPJOONDALUPWUNDOWIE

O

MORLEYEY

PERTH

STIRLING

NGTCANNINGTTON

FREMANTLE

KKalaamu

Belmont

BayBayswaterBay r

RMADALEARM

QUINNS ROCK

ndndeanBassenBBaBassend

05/06ANNUAL REPORTEastern Metropolitan Regional Council

Page 2: 2005/2006 EMRC Annual Report

Providing a range of services, the EMRC’s operations aregoverned by a Council consisting of two Councillors and onedeputy from each member Council. The Council worksthrough approximately 70 skilled and dedicated staff whowork across three divisions: Corporate Services, WasteManagement Services and Regional Services, as well as aseparate Resource Recovery Project unit.

Where we are goingThe EMRC’s vision is to be a responsive and innovative

leader in assisting Perth’s Eastern Region to be a great place tolive, work, play and do business.

Our mission is: the EMRC, by partnering with memberCouncils and other stakeholders, facilitates strategies andprovides services for the benefit and sustainability of Perth’sEastern Region.

Our valuesThe EMRC is governed by the values of:

ExcellenceStriving for excellence through the development

of quality and continuous improvement.

RecognitionValuing staff in a supportive environment that

focuses on their wellbeing.

InnovationFocus on innovative approaches in project

and service delivery.

ResponsivenessDynamic and flexible service delivery.

IntegrityAccountability and consistency in all that we do.

Leaders ensure that the organisation’s values are created and sustained by establishing the Council’s strategic direction and providing an environment thatencourages all staff to reach their potential in achieving the organisational goals.

The region we work forPerth’s Eastern Region, represented by the six member

Councils that comprise the EMRC, stretches from the edge ofthe Perth CBD, along the Swan River through urbanresidential, commercial and industrial areas, to the scenicSwan Valley and into the forests and prime agricultural landin the Darling Ranges.

Covering approximately one third of the Perthmetropolitan area, the region is home to approximately300,000 people from diverse cultural backgrounds. Withpopulation growth forecast to be around 8% per annum overthe next 10 years, it is one of the fastest growing regions inWestern Australia.

This growth has led to the development of a range ofattractive residential options. With everything from familybased communities through to luxury waterfront apartmentson the Swan River, the region represents a great place to live.With world-class wineries, an abundance of heritage andcultural attractions, and some of the State’s most beautifulnational parks and walking trails, the region also has lots tosee and do.

Home to Western Australia’s major transport hub, theregion hosts both the international and domestic airports,along with major rail and road networks linking WesternAustralia with the east coast of Australia. This coupled withthe region’s proximity to the Perth CBD, strong service,manufacturing and engineering industries, and affordablecommercial and industrial properties, make it an ideal placein which to do business and invest.

WHO WE AREThe Eastern Metropolitan Regional Council (EMRC) is a progressive and innovative regional localgovernment working on behalf of six member Councils – Town of Bassendean, City of Bayswater, City of Belmont, Shire of Kalamunda, Shire of Mundaring and City of Swan.

Chairman’s Report 3

C.E.O’s Overview 5

Organisation Structure 7

Committees 8

Elected Representatives 8

Corporate Services 11

Waste Management Services 15

Regional Services 17

- Environmental Services 17

- Regional Development 21

- Risk Management Services 27

Resource Recovery Project 29

Statutory Reports 31

Five Year Financial Plan 33

Financial Reports 34

Notes for Concise Financial Report 40

EMRC ANNUAL REPORT 2005 / 2006

01

CONTENTS

Page 3: 2005/2006 EMRC Annual Report

EMRC ANNUAL REPORT 2005 / 2006

CHAIRMAN’S REPORTAt a time when local government in Western Australia faces challenges inmeeting growing community expectations to expand the range and quality of services, the EMRC and member Councils are leading the way in resourcesharing, by increasing capacity and efficiency through the collaborative approach we take.

Since being elected as Chairman of the EMRC 12 months ago, I have seen the EMRC grow in its range ofservices and projects. The organisation is a responsive andinnovative leader.

It was great to see the Councils collaborate on so manyprojects throughout 2005/2006. Looking back, there are fourkey projects that the EMRC, with the member Councils,initiated that will have long-term benefits for the region’ssustainability.

• The EMRC worked with the City of Bayswater, City of Belmont and City of Swan, as well as two non-member Councils (Town of Northam and Shire of Toodyay) to prepare a submission to Lotterywest to helpfund the Councils’ Community Fun Days, held over the Avon Descent weekend. This collaboration resulted in a $137,594 grant from Lotterywest.

• The EMRC and member Councils were part of the Perth Solar City Consortium seeking funding under the Australian Government’s Solar Cities Funding Programme. In May, I travelled to Canberra with the PerthSolar City Consortium to present our business case on why Perth’s Eastern Region will be an ideal location to host one of Australia’s first solar cities. My thanks to Councillors and Politicians who put their support behindthe Perth bid. Fingers crossed for a successful announcement.

• In early January, I travelled with an EMRC delegation to Adachi-ku in Japan. The City of Belmont asked the EMRCto expand their sister-city relationship with Adachi-ku, from cultural and student exchange to trade and business exchange. The delegation established valuable business and working relationships. The EMRC was offered promotional and business exchange opportunities, which will be progressed over the next two years. One of the promotional opportunities is screening a video promoting Perth’s Eastern Region on the Adachi City Vision facility, a large digital screen located at a typically very busy Tokyo railway station.

• A Memorandum of Understanding was signed between the EMRC and the International Council for Local Environmental Initiatives (ICLEI). ICLEI sought approval to use the EMRC’s regional approach to environmental issues as a model for introduction elsewhere in Australiaand New Zealand.

Thanks very much to all the elected representatives onthe EMRC Council for their work over the last year.

On behalf of my fellow Councillors I would like to thankthe Chief Executive Officer, Mr Gavin Watters and the EMRCteam for their continued commitment to the EMRC, theCouncils and the region.

COUNCILLOR JOHN BEATONChairman Re

turn

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Page 4: 2005/2006 EMRC Annual Report

EMRC ANNUAL REPORT 2005 / 2006

CEO’S OVERVIEWThis report outlines the achievements and financial performance of the EMRC in2005/2006, during which the organisation continued to deliver and develop itsportfolio of services and regional projects for the benefit and sustainability ofPerth’s Eastern Region.

The key achievements highlighted throughout this year’sannual report can be attributed to:

• The leadership and guidance provided by the EMRC Council and committees.

• Working in close consultation and partnership with the six member Councils.

• Integrating strategic and business plan actions with staff personal commitment plans to ensure they support our strategic objectives.

• A high standard of accountability and sound governance practices giving stakeholders confidence in Council’s decisions.

• Innovative contracts with commercial waste operators.

• The energies and motivation of all EMRC staff.

The departure of two Executive Managers during 2005provided a timely opportunity to streamline and simplify theorganisational structure. Previously we had operated withfive divisions: Corporate Services, Environmental Services,Risk Management Services, Regional Development, andEngineering and Waste Management Services, as well as aseparate Resource Recovery Project unit. This structureserved the EMRC and member Councils well; however, theEMRC’s strong growth and increasing number of functionsand processes, internal evidence and customer surveysindicated that some restructuring was required to ensure thatwe remain responsive and adaptive to the evolving needs ofthe member Councils.

Under the new structure, three services wereamalgamated into one new division – Regional Services. The amalgamation of Environmental Services, RegionalDevelopment and Risk Management Services into onedivision further builds our customer relationships andcustomer needs management, and streamlines consultationand service delivery to ensure we meet the changing needsof the member Councils.

During the year, Council adopted a strong and wellstructured Strategic Plan that responds to a challengingenvironment. The Plan included a clear short-term and long-term focus on the varied needs of the EMRC’s many stakeholders. The Strategic Plan is for the period 2005to 2010 and provides a framework for undertaking a range of actions that will enable the EMRC’s vision for the future of Perth’s Eastern Region to be achieved.

After an extensive tender process, Strahan Research wasappointed in late 2005 to provide market research servicesfor the organisation, including our Stakeholder PerceptionSurvey. Findings from this year’s Stakeholder PerceptionSurvey were very pleasing and will be used to improve ourservice delivery to the member Councils and guide thedevelopment of the organisation’s strategic, business andmarketing planning.

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EMRC ANNUAL REPORT 2005 / 2006

In the major area of Waste Management Services, therewas a decrease in member Council tonnages disposed at theRed Hill Waste Management Facility; however, there was a34.8% increase in total waste tonnages received.

We made real progress in the community consultationphase of the Resource Recovery Project during the year. Afterextensive community consultation in each member Councilarea, two resource recovery regional workshops wereattended by 87 community members who allocatedweightings to selection criteria that will assist us in selectinga resource recovery solution for Perth’s Eastern Region. Aphone survey of residents in the region was also conducted,with the overall results identical to those from the workshop,validating the technology and site ranking results.

I would also like to thank the community volunteers whogive up their time to serve on the EMRC’s Waste ManagementCommunity Reference Group and provide informed adviceand feedback to the EMRC on waste management and wasteeducation issues. Their dedication is greatly appreciated.

The Environmental Services team were kept busy duringthe year progressing a number of projects aimed at improvingair and water quality, water conservation, maintainingregional biodiversity, and minimising the environmentalimpact of waste and regional contamination.

During the year the Risk Management Service became aWorkSafe WA authorised provider of the new ‘SafetyAwareness Training for the Construction Industry’. This ismandatory training for everyone working in construction, andas such demand began to build towards the end of the year.

The Regional Development team continued to workclosely with the member Councils and regional stakeholdersto encourage economic and tourism development in Perth’sEastern Region. After three years of dedication to remappingtrails, the Swan Valley and Perth Hills Trails Discovery Guideand complementary website (www.perthtrails.com.au) wasofficially launched in October 2005. The Guide has been wellreceived, with over 100 bookstores in the Perth metropolitanarea stocking it.

This year also saw the retirement of Kevin Lang (Manager,Audit and Compliance), after a career in local governmentspanning in excess of fifty years and inclusive of ten yearswith the EMRC. I take this opportunity to personally thankKevin for his outstanding contribution to the success of theEMRC and to convey our thanks for a job well done.

The EMRC, member Councils and regional stakeholderscan be proud of the organisation’s achievements during thepast year.

GAVIN K WATTERSChief Executive Officer

CEO’S OVERVIEW CONT.

0706

Finance• Accounts• Payroll• Asset managementOrganisational Development• Human resources management• Strategic and business planning• Strategic and business reporting• Business management systemCompliance• Statutory compliance• Financial complianceGovernance and Administration• Records• Functions and training management• Agendas and minutes• Contract management• Council and committee supportInformation Services• Information planning• Information storage and accessMarketing and Communications• Stakeholder relationship management• Organisational marketing and communications services• Maintain EMRC’s web presence

Red Hill Waste Management Facility• Class I - III waste disposal• Class IV waste disposal• Weighbridge operation• Red Hill administration• Transfer station• Recyclables recovery• Greenwaste composting• Greenwaste shredding and mulching• Ferricrete production and sales• Landfill gas control• Leachate control and monitoring• Household hazardous waste collection and disposal• Dry-cell battery collection programme• Waste education• Waste management research

Environmental• Environmental management• Natural resource management• Environmental consulting• Environmental advice and advocacy• Regional sustainability• Regional catchment management• Environmental researchRisk Management• Occupational safety training• Risk management consulting• Hazard prevention• Accident prevention• Public liability risk surveys• Workplace safety system audits• Risk management research Regional Development• Economic development• Regional transport• Regional employment• Regional tourism• Regional information resources• Regional development advice and advocacy• Community development• Regional education• Regional development research

Chief Executive OfficerGavin Watters

Resource Recovery Project Development ManagerStephen Fitzpatrick

Waste Management ServicesExecutive Manager Waste Management ServicesBrian Jones

Corporate ServicesExecutive ManagerCorporate ServicesPeter Schneider

Regional ServicesExecutive Manager Regional Services Mick McCarthy

• Alternative waste disposal methods• Community education

ORGANISATION STRUCTURE

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EMRC ANNUAL REPORT 2005 / 2006

COMMITTEES

ELECTED REPRESENTATIVESThe EMRC’s Establishment Agreement specifies that two Councillors from each member Council beappointed to the EMRC Council, whilst a third Councillor is appointed to deputise in their absence. At 30 June 2006, the appointed Council members were:

08 09

Cr Barry McKennaCity of Bayswater

Cr Lou MagroCity of Bayswater

Cr Mark DevlinDeputy

Town of Bassendean

Cr Michelle StubbsTown of Bassendean

Cr Tina KleinTown of Bassendean

Cr Elizabeth TaylorShire of Kalamunda

Cr Janet PowellCity of Belmont

Cr Marion BlairCity of Belmont

Cr Glenys GodfreyCity of Belmont

Cr Terry KenyonDeputy

City of Bayswater

Cr Tony CuccaroDeputy

Shire of Mundaring

Cr David LavellShire of Mundaring

Cr John BeatonChairman

Shire of Mundaring

Cr Sue BlairDeputy

Shire of Kalamunda

Cr Pauline TonkinShire of Kalamunda

Cr Charlie ZanninoDeputy

City of Swan

Cr Todd JonesCity of Swan

Cr David FardigDeputy Chairman

City of Swan

Chief Executive Officers AdvisoryCommittee (CEOAC)

The CEOAC was formed to consider matters that have an impact on the member Councils and/or the EMRC’sbusiness activities. Consisting of the member Councils’ ChiefExecutive Officers and the EMRC’s Chief Executive Officer,the CEOAC provides recommendations to the EMRC Council.

Technical Advisory Committee (TAC)The TAC consists of an officer from each member

Council, the EMRC’s Chief Executive Officer and appointeddeputies. The TAC reviews and provides reports on technicalmatters and recommendations for Council meetings.

Strategic and Secondary Waste TreatmentCommittee (SSWTC)

The SSWTC is comprised of the members of the TAC and

a Councillor from each member Council. The SSWTC meetsto review and progress resource recovery activities for theregion.

Regional Identity Committee (RIC) The RIC consists of one Councillor from each member

Council and meets to review and develop branding for theregion. The RIC was previously known as the Image IdentityReview Committee (IIRC). The name change reflects theamended terms of reference for the Committee in overseeingthe development of a regional identity.

Audit Committee (AC) The AC consists of one Councillor from each member

Council and was established as required by law. It guides andassists the Council with audits and financial management.

• Cr Tina Klein, Town of Bassendean

• Cr Michelle Stubbs, Town of Bassendean

• Cr Mark Devlin, Town of Bassendean (Deputy)

• Cr Lou Magro, City of Bayswater

• Cr Barry McKenna, City of Bayswater

• Cr Terry Kenyon, City of Bayswater (Deputy)

• Cr Glenys Godfrey, City of Belmont

• Cr Marion Blair, City of Belmont

• Cr Janet Powell, City of Belmont (Deputy)

• Cr Elizabeth Taylor, Shire of Kalamunda

• Cr Pauline Tonkin, Shire of Kalamunda

• Cr Sue Blair, Shire of Kalamunda (Deputy)

• Cr John Beaton, Shire of Mundaring (Chairman)

• Cr David Lavell, Shire of Mundaring

• Cr Tony Cuccaro, Shire of Mundaring (Deputy)

• Cr David Fardig, City of Swan (Deputy Chairman)

• Cr Todd Jones, City of Swan

• Cr Charlie Zannino, City of Swan (Deputy)

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EMRC ANNUAL REPORT 2005 / 2006

2005/2006 Highlights and AchievementsThroughout the year the Corporate Services team

provided valuable support to the business units and assistedin the delivery of services, projects and regional initiatives.

AdministrationThe Administration team was committed to providing

compliant record keeping practices in accordance with theRecord Keeping Plan. In August 2004, the EMRC’s RecordKeeping Plan was formally approved by the State RecordsCommission for a period of three years. A revised RecordKeeping Plan will be submitted to the State Records Office byJuly 2007 taking into account updates and changes to theEMRC’s record keeping systems.

Document Manager, the EMRC’s primary electronicdocument management system introduced in July 2003, hashad 60,000 documents saved into its two repositories by staff.

During the year, records management training wasincluded as part of all new staff members’ induction processto inform them of their responsibilities in regards tocorporate record keeping. The Records Officer also provideda helpdesk for Document Manager users.

Financial ManagementThe Finance team continued to provide financial services

to the organisation, including the core processes of accountspayable and receivable, payroll processing, assets monitoring,financial reporting, financial forecasting and generalaccounting processing.

Key financial activities undertaken during the year were:

• The performance of managed funds, which resulted in net returns higher than general bank term deposit rates, following the implementation of short-term and long term investment strategies in accordance with the Management of Investments Policy.

• The impacts of adopting Australian Equivalents to International Financial Reporting Standards (AIFRSs). The EMRC reported for the first time in compliance with AIFRSs in the Annual Financial Report for the year ended 30 June 2006. The transition to the AIFRSs was managed via a process of education, which included technical training and liaison with the EMRC’s auditors and industrygroups. This included a review of AIFRSs to determine the effect on the EMRC’s existing accounting policies and treatments, resulting in some changes to the accounting policies applied to previously prepared Annual Financial Statements. Overall it was determined that there were no material differences as a result of adopting AIFRSs.

• For the first time, and as a requirement of the ‘Local Government (Financial Management) Regulations 1996’ (Clause 33A), a budget review was required to be undertaken between 1 January and 31 March 2006. The review of the EMRC 2005/2006 Annual Financial Budget was undertaken during March 2006 and submitted to Council, via the Audit Committee, for adoption. The format of the review undertaken was based on a review by officers of all EMRC accounts (operating income, operating expenditure and capital expenditure accounts) within their area of responsibility.

• A review of the tonnages budgeted to be received at the Red Hill Waste Management Facility. This review was undertaken to forecast tonnages expected to be received by 30 June 2006. These forecasts, when calculated againstthe appropriate disposal rates, provided financial forecasts relating to:

• Base income (including landfill levy) from tonnages analysis

• Secondary waste income

• Landfill levy expenditure

• Waste education charge income

• Cell depreciation/usage

11CORPORATE SERVICESThe Corporate Services team provides administrative, financial management, information services,marketing and communications, and organisational development support services to the organisationand ensure that the EMRC’s operations comply with statutory requirements.

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EMRC ANNUAL REPORT 2005 / 2006

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All forecasts, which were an actual review of the budgetprovisions set against each account, were then loaded into the financial management system to provide a moreaccurate forecast of the end of year result. These reviewedresults also formed part of future financial reports, includingthe Five Year Financial Plan, which was submitted to Councilduring budget deliberations and will form the basis of future annual budgets.

Information ServicesInformation technology infrastructure was updated in

several areas during the year, including:

• Staff who work remotely from the EMRC, both at member Councils and other locations, were able to access email and documents at the EMRC via a virtual private network (VPN) link to a server.

• A high speed internet link was established at the Red Hill Waste Management Facility using a wireless internet service provider. This greatly improved the previous link, which was limited by restricted telecommunications services available to the area. It also enabled staff at the Facility to make greater use of the IT systems in place at the EMRC’s administration office in Belmont.

• Upgrades were made to four servers, including the mail system, file server and the Red Hill server. This was a major task as it involved upgrading the EMRC network system to Microsoft Active Directory 2003.

Marketing and CommunicationsThe Marketing and Communications team continued to

provide day-to-day marketing assistance, including thedevelopment of public relations opportunities, coordinationof advertising, production of EMRC newsletters andcollateral in accordance with the corporate style guide,compilation of award submissions, coordination ofsponsorship opportunities and the review of content andfunctionality across all four EMRC websites.

Key marketing activities undertaken during the year were:

• The implementation of an electronic-newsletter (e-news) function enabling the organisation’s newsletters to be distributed in a more environmentally friendly and cost-effective way.

• Assisting the Tourism Development team to launch the Swan Valley and Perth Hills Trails Discovery Guide, including the design of a complementary website (www.perthtrails.com.au).

• The development of a secure online payment gateway to facilitate sales of the Swan Valley and Perth Hills Trails Discovery Guide via the EMRC’s website.

• Coordinating a regular schedule of EMRC staff information sessions/sundowners to help improve internal communications.

• Developing a Lobbying and Advocacy Policy to provide a consistent approach and framework for dealing with organisational and regional lobbying and advocacy issues.

• Appointing consultants, through a tender process, to conduct stakeholder perception surveys over the next three years. Overall findings from the 2005/2006 survey were positive and will assist the organisation in future planning processes.

The EMRC’s annual Community Grants Programme was again conducted to support community groups in thevicinity of the Red Hill Waste Management Facility.Successful recipients under this year’s programme wererecognised with a cheque presentation ceremony at the 2005 Red Hill Open Day.

A total of $11,000 was awarded to 11 groups under the2005/2006 programme:

• Gidgegannup Agricultural Society Inc

• Gidgegannup Recreational Club

• Gidgegannup Playgroup Inc

• Gidgegannup Ratepayers Economic & Business Enterprise Group

• Gidgegannup Basketball Club

• Parkerville Playgroup

• Gidgegannup Netball Club

• Mt Helena Badminton Club

• Wooroloo Brook Land Conservation District Committee

• 1st Gidgegannup Scout Group

• Gidgegannup Junior Football Club

Organisational Development

As part of facilitating continuous improvement initiatives

throughout the organisation, significant effort was expended

on improving induction processes, succession planning and

other staff-focused programmes to ensure the EMRC remains

an employer of choice.

The EMRC’s Strategic Plan was adopted by Council in

December 2005. It was published in order to inform the

community of projects and services that will be progressed

over the next few years. The Strategic Plan covers the period

from July 2005 to June 2010.

In accordance with r19C(7) of the ‘Local Government

(Administration) Regulations 1996’, a local government is to

ensure that the electors and ratepayers of its district are

consulted during the development of a plan for the future,

and when preparing any modifications of a plan.

Consequently, the EMRC’s Five Year Plan for the Future was

made available through the member Councils’ libraries, on

the EMRC website, and upon request through the EMRC

reception. No public comments were received and the Plan

was adopted on 20 July 2006 without modification.

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EMRC ANNUAL REPORT 2005 / 2006

The team also ensure the Red Hill Waste ManagementFacility is operated in such a way as to improve memberCouncil and EMRC financial viability, undertake research onwaste management issues, encourage utilisation of wastemanagement by-products, work to improve regional wastemanagement practices and encourage stakeholdercommitment to waste minimisation.

2005/2006 Highlights and Achievements

Red Hill Waste Management FacilityDuring 2005/2006 there was a decrease in the amount of

member Council tonnages disposed of at the Red Hill WasteManagement Facility; however, there was a 34.8% increase inthe total waste tonnages received. Most of the increase waswaste from the CSBP Cresco site in Bayswater, together withincreased commercial and industrial waste tonnages. Totalincome amounted to $10,502,193 which was 20.5% up on thebudgeted income.

In early 2006, a new 51 tonne Caterpillar 836H wastecompactor costing $1,144,000 was purchased, which was thefirst machine of its kind in Australia, and as a result theadditional tonnages delivered were able to be processedwithout a corresponding increase in expenditure. Totaloperating expenditures were 10.7% up on the budgetedoperating expenditures.

The concrete encapsulation service was used extensivelyand provided businesses in the region with anenvironmentally safe and economical method of disposingwastes that would otherwise have to be shipped interstatefor disposal or to Karratha for incineration.

During 2005/2006, work on the design for Stage 2 of theClass IV cell and Stage 11 for Class II/III waste by EMRC staff,with the assistance of specialist consultants, continued and isscheduled for construction during 2006/2007. The cells willincorporate world best practice liner, leachate and collectiontechnologies.

Greenwaste ProcessingThe greenwaste processing area enabled over 12,000

tonnes of greenwaste to be diverted from landfill, and workhas continued to develop products that comply withAS4454-2003 (composts, soil conditioners and mulches).

Mulch produced on site continued to be used toconstruct contour banks on the completed areas of landfill,and such contour banks proved considerably more effectivethan the clay contour banks previously used. There has alsobeen a substantial improvement in the germination of theseeds used to rehabilitate the site.

The area licensed by the Department of Environment andConservation to undertake soil remediation providedmember Councils and others in the region with the capacityto remediate acid sulphate soils and other contaminated soilsthat are capable of being treated.

Methane Gas CollectionMethane gas collection and electricity generation

utilising the gas was also expanded in 2005/2006 withadditional gas wells installed. This led to approximately 19,800 mega watt hours being supplied to the electricity grid.This generated enough energy to power around 3,300 homes.

Household Chemical/Hazardous WasteCollections

During the year, the collection of householdchemical/hazardous wastes from residents in the region wasexpanded as part of the EMRC’s partnership with memberCouncils in regional waste management projects. Eachmonth, collections were undertaken at one of the memberCouncil depots. This gave residents the opportunity to taketheir household chemical/hazardous waste materials to theirlocal Council depot twice a year, rather than put the materialin the bin where it may cause harm.

Also during the year, drumMUSTER collections of farmchemical containers continued and the school ‘Dry-cellBattery Collection Programme’ expanded.

WASTE MANAGEMENT SERVICESThe Waste Management Services team provides advice on waste management issues to the memberCouncils and undertakes the design, documentation and supervision of the works required to ensure theRed Hill Waste Management Facility is able to minimise the environmental impact of waste disposal, and waste management operations.

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EMRC ANNUAL REPORT 2005 / 2006

Environmental ServicesThe Environmental Services team strives for the

achievement of measurable and sustainable benefits throughdeveloping strong partnerships and building positive workingrelationships with member Councils and other stakeholders.

The team’s approach to environmental sustainability issupported by key outcome objectives related to improvingair and water quality, water conservation, maintainingregional biodiversity and minimising the environmentalimpact of waste and regional contamination.

2005/2006 Highlights and AchievementsDuring the year, the Environmental Services team worked

in a professional and coordinated manner to deliversignificant outcomes in all areas of their operations. A key initiative in 2005/2006 was the development and adoption of a ‘Sustainability Position Paper for the Eastern Metropolitan Region’ that highlighted the work on sustainability initiatives by the EMRC and each member Council.

Environmental Management of the RedHill Waste Management Facility

Environmental management support was provided to theRed Hill Waste Management Facility in waste acceptanceapprovals, compliance reporting, national pollutantinventory, environmental monitoring, rehabilitation and thedevelopment of operating procedures in the EnvironmentalManagement System.

Environmental Officer ServicesOngoing Environmental Officer support was provided for

the Town of Bassendean, the Shire of Kalamunda and theShire of Mundaring, working on a range of activities related to

environmental impact assessments, environmentalmanagement plan development and implementation,advisory committee support, and community consultationfor environmental activities. It is now increasingly recognisedthat the environmental consulting roles within the memberCouncils has grown and that the consulting service needs toadapt to meet changing needs.

Project Officer RolesParticular highlights in the year included, projects initiated

by the member Councils that will provide them with a soundstrategic basis on which to build effective and sustainableenvironmental practices. Projects in this category include:

• The state of the environment reporting process for Mundaring.

• A Local Biodiversity Strategy for Kalamunda.

• Initiating an Environmental Plan for the City of Bayswater.

• Continuing to implement the Town of Bassendean’s Environment Plan.

• Initiating work on a Local Environmental Planning Strategy for the City of Belmont.

Advice to Member Councils Advice to member Councils was provided on the

implications for local governments on a range of State andFederal Government statutes, policies and initiatives. Theseincluded changes to the Vegetation Clearing Regulations,Draft Swan and Canning Rivers Management Bill and the EPAGuidance Statement (Number 33) for Planning andDevelopment. Through this advice, the member Councilswere able to stay up-to-date on regulatory and policyinitiatives.

17REGIONAL SERVICESFollowing changes in staff and a review of the organisational structure in late 2005, the Regional Servicesdivision was established and comprises Environmental Services, Regional Development and RiskManagement. The new structure provides improved efficiency and has facilitated closer workingrelationships between the services, with a number of joint initiatives being identified and pursued.

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EMRC ANNUAL REPORT 2005 / 2006

Perth Solar City ProjectThe EMRC and six member Councils were part of the

Perth Solar City Consortium seeking funding under theAustralian Government’s Solar Cities Funding Programme, a$75 million initiative in energy efficiency and demandmanagement, smart metering and distributed solartechnologies across Australia. A detailed business case wassubmitted in April 2006 and outcomes of the funding bidshould be known in 2006/2007.

If funded, Phase One of the Perth Solar City Project willbe a focused trial of community engagement in Perth’sEastern Region and the establishment of demonstrationprojects, many of which will also be in the region. Phase Twowill see a wider roll out of the engagement and technologiesthroughout the region and elsewhere in the Perthmetropolitan area.

The EMRC’s role has been to provide coordination and facilitation of the member Councils’ interests particularlyin relation to community engagement, marketing and communications, and demonstration projects. It is envisaged that the EMRC will continue its involvement in the implementation stage of the project, should theproposal be successful.

Major Regional Environmental ProjectsThe Natural Resource Management (NRM) Policy

Development Project is a partnership between the SwanRiver Trust and local governments. It is coordinated anddelivered through the EMRC, to improve the health of theSwan River and its catchment. This water qualityimprovement initiative involves 11 Councils, including all sixEMRC member Councils.

The Local Government NRM Manual, a key deliverable ofthe project, provides tailored information to localgovernments on a range of best practice planning andmanagement techniques aimed at reducing nutrient exportto the river system. During the year a Sustainable LandscapingPackage was developed, and Foreshore Management andWaste Guidelines released.

The Eastern Hills Catchment Management Programme(EHCMP) is an initiative aimed at improving land quality, waterquality and maintaining biodiversity. The EHCMP is a sub-region of the Swan NRM Region and aims to achieve therelevant objectives and outcomes set through the SwanRegion Strategy for NRM, and to provide communitycapacity building for the participating member Councils.Additionally the EHCMP has had a strong workingpartnership with the Swan River Trust, delivering waterquality and community capacity building outcomes in theEastern Hills. The team also represents member Councilinterests and perspectives in regional NRM forums.

Working closely with the Eastern Hills CommunityLandcare network, through five catchment groups and oneLand Conservation District Committee, the EHCMPcoordinates activities in the key areas of water management,natural diversity and sustainable production in partnershipwith the member Councils. The Programme operates withfunding support from the Shires of Kalamunda andMundaring and the City of Swan, as well as from the SwanCatchment Council and the Swan River Trust. In addition tocore funding, the EHCMP, in collaboration with communityand local government, secured or pursued over $220,000 inexternal funding in the 2005/2006 financial year for on-ground projects in the region. Many projects extendedacross more than one Council area allowing for the sharing ofideas and resources to achieve a common goal.

The EHCMP was listed as a finalist for a State LandcareAward in 2005. Based on the integrated model of communitycapacity building and support, where the EHCMP officerswork closely with bushcare staff in Council Offices to ensurea seamless integration between catchment and landcaresupport and Friends Group support mechanisms.

Research across Australia indicates the level ofcommunity involvement in landcare and bushcare in theEastern Hills is amongst the highest levels in Australia. This demonstrates the EMRC’s ability to draw together arange of stakeholders to achieve common outcomes forprotecting and managing the environment.

The EMRC is also tackling the emerging issue of globalwarming associated with greenhouse gas emissions throughan air quality improvement project aimed at energyefficiency. Through the Cities for Climate Protection (CCP)Programme, an initiative of the International Council forLocal Environmental Initiatives (ICLEI), the EMRC assisted allthe member Councils and the City of South Perth toimplement their corporate greenhouse action plans and workwith residents on practical ways in which they can reducehome energy use. The majority of member Councilsparticipating in the Programme completed milestone fiveduring the year and are progressing toward the next phase of the Programme, known as CCP Plus. It is anticipated that if the Perth Solar City Project is funded, it will be a majorcomponent of corporate and community greenhousereductions in the coming years.

The Water Campaign Programme is also an initiative ofICLEI and uses the same milestone structure as CCP to assistCouncils in addressing water conservation and water qualityissues. The EMRC is currently supporting five memberCouncils and the City of South Perth to progress through themilestone process. All Councils supported by the EMRCachieved milestone one in 2005/2006 and work has begunon establishing targets and developing action plans forcorporate and community sectors.

Memorandum of Understanding betweenthe EMRC and the International Councilfor Local Environmental Initiatives (ICLEI)

One advantage of the EMRC’s role in coordinatingregional environmental projects, can be demonstrated by thehigh levels of outcomes possible through a regionalpartnership approach to tackling a major environmentalissue, together with support for policy development and forhigh levels of community engagement.

In 2005, ICLEI approached the EMRC seeking to establisha Memorandum of Understanding between the twoorganisations based on the long history of collaborativeworking partnerships between ICLEI, the EMRC and themember Councils on CCP and more recently the WaterCampaign. ICLEI sought approval to develop and use theEMRC’s regional approach as a model for potentialintroduction elsewhere in Australia and New Zealand. TheMemorandum of Understanding was signed in February 2006.

Environmental Management for Ascot Place

Support for the EMRC’s Environmental PolicyImplementation Group, which has responsibility forleadership and initiatives in sustainable management of theEMRC’s Ascot Place premises, was continued in 2005/2006.During the year, the Environmental Policy ImplementationGroup continued to address issues related to reducingcarbon emissions from the EMRC car fleet through theCarbon Neutral Programme, as well as recycling, energyefficiency and water conservation initiatives.

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Regional DevelopmentThe role of the Regional Development team is to work

closely with member Councils and regional stakeholders to:

• Encourage economic development in the region.• Create new investment opportunities, sustainable

economic growth and employment opportunities.• Facilitate the growth and promotion of tourism

development in the region.• Increase community participation in arts,

culture and recreation opportunities.

2005/2006 Highlights and AchievementsDuring 2005/2006, the Regional Development team

continued to concentrate its efforts towards initiatives thatmake Perth’s Eastern Region an ideal business, investment andtourism destination.

Industry Clusters ProjectBusiness networks, or ‘industry clusters’, are groups of

similar or related businesses forming networks to worktogether in order to increase competitiveness and acceleratebusiness growth.

Based on research conducted in previous years, theRegional Development team progressed the establishment ofan industry cluster for Perth’s Eastern Region, focusing on themining and technology services, metals fabrication andequipment manufacturing sectors. Specific issues beingconsidered from a cluster perspective include thedevelopment and retention of skills, resource sharing,collaborative tendering and strategies to enhance businessgrowth and sustainability.

The cluster members have also considered the type of structure and legal entity required to support the activitiesof the network and a leadership group has provided valuable input into the preparation of a business plan toguide the future development of the cluster initiative.

Adachi-ku DelegationThe EMRC is committed to developing relationships with

international governments as a way to stimulate economicgrowth and investment opportunities for Perth’s Eastern Region.Following a request from the City of Belmont to expand theirsister-city relationship with the Adachi-ku municipality in Japanbeyond cultural and student exchange to trade and businessexchange, the EMRC undertook a delegation to Japan in early2006 to establish business and working relationships.

The delegation, comprising of the EMRC Chairman,Executive Manager Regional Services and an interpreter, wasextremely successful and the EMRC was offered a range ofpromotional and business exchange opportunities, which willbe progressed over the next two years, culminating in afurther delegation in late 2007. One of the promotionalopportunities relates to the televising of a video promotingPerth’s Eastern Region on the Adachi City Vision facility, alarge digital screen located at a busy railway station.

Regional Integrated Transport StrategyA preliminary review of transport infrastructure initiated by

the member Councils, led to the EMRC, the member Councils,and the Department of Planning and Infrastructure identifyingthe need for the development of a comprehensive regionalintegrated transport strategy for Perth’s Eastern Region.

The Regional Integrated Transport Strategy, beingundertaken by the ARRB Group through a public tenderprocess, was progressed during 2005/2006. There was areview of the transport infrastructure performance and theidentification of current and future transport needs for theregion. Strategy and action plan development was initiated inthe year and included a detailed assessment of priorityprojects for the region. It will be completed during2006/2007. It is expected that the strategy will provide a‘blueprint’ for the development of transport infrastructure inPerth’s Eastern Region over the next 20 years.

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Swan and Helena Rivers Management Framework

The member Councils recognise the importance of theSwan River as one of the region’s most significant naturalassets and are in the process of developing a strategy andmanagement framework to enhance its environmental, socialand economic value to Perth’s Eastern Region. Initial researchundertaken by the EMRC in early 2004 identified a range ofsites located within the region that already contribute (or have the potential to contribute) to these regional values.

Consultants were appointed in February 2005, followinga public tender process, to undertake the study and themajority of work associated with the preparation of a draftreport which was completed during 2005/2006. The studyidentified a range of planning strategies aimed at providingguidelines and standards for the protection andenhancement of the rivers’ values, and guidance on thedevelopment of precinct plans for those member Councilswith foreshore reserves adjacent to the river.

The study is expected to be completed toward the endof 2006 and it is proposed to establish a working groupcomprising of member Council and key government agencyrepresentatives, to oversee the implementation of themanagement framework.

Swan Alliance The Swan Alliance is a not-for-profit, incorporated body

that has been funded under the Australian Government’sCareer Advice Australia Programme to deliver a range ofeducational programmes across the eastern parts of the Perthmetropolitan area. This area includes three district areasknown as ‘Local Community Partnership’ regions. Theseeducational initiatives are aimed at supporting young peoplewho experience difficulties in engaging in the educationalsystem and include structured workplace learning, career andtransition support and the adopt a school programme.

The EMRC is represented on the Swan Alliance Board andprovides local government and industry input to assist the‘Local Community Partnership’ in delivering improvedoutcomes that will provide long-term educational andeconomic benefits to Perth’s Eastern Region.

North East Metropolitan Chamber of Commerce

The EMRC has provided funding support to the NorthEast Metropolitan Chamber of Commerce (NEMCC) over thelast three years to assist the establishment of theorganisation as a viable regional business association. A Memorandum of Understanding between the NEMCC andthe EMRC has been signed and their Strategic Plan 2002-2005identified a range of programmes as being essential to thelong-term viability and sustainability of the NEMCC.

The NEMCC progressed a range of projects and activitiesduring 2005/2006 including:

• A Regional Business Register - to provide local, national and international business access to trade, joint venture, and investment opportunities via an online tool for local business.

• Industry Cluster Capability Register – to identify the skills, equipment, resources and capabilities of the companies involved in the cluster initiative.

• Economic development planning with member Councils – to provide input and assist the member Councils to develop and implement local economic development plans and strategies.

• Involvement with regional infrastructure and industry strategies – to provide input into regional scale initiatives being undertaken by the EMRC and relevant State Government agencies that affect the region. This includes a lobbying and advocacy role related to these and other projects.

• Training and capacity building for small business and export trade development – to increase the skills of small business and improve the export potential of the region.

• Jobs Galore – to provide a major event for employers to recruit employees in a range of businesses and industries. An event was held in February 2006 with more planned.

Continued support for the NEMCC will be based onCouncil endorsement of the outcomes contained in abusiness proposal, which was under development at the endof 2005/2006.

Education Retention for Crime Prevention Project

As part of its Youth Strategy, the EMRC provided fundingsupport to the Hills Community Support Group (HCSG). This funding will be used to undertake a study investigatingthe development of a model to retain youth in the educationsystem as a key strategy to minimise the economic and socialimpacts associated with youth crime and antisocialbehaviour. Youth crime and antisocial behaviour cost thecommunity significantly in terms of damage caused byvandalism, restitution costs and security measures.

The study found there is strong anecdotal evidenceindicating that retaining youth in a structured educationbased environment early in adolescence is a majordeterminant in reducing crime and antisocial behaviour. The study prepared a model that can be used to identify theroles and responsibilities for the various government andcommunity sector organisations involved in this issue. Themodel will assist in clarifying the lead agencies andminimising duplication amongst the key target groupsrequiring support. The draft report for the study is expectedto be completed in 2006/2007.

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25

Regional Tourism InitiativesThe EMRC’s Regional Tourism Strategy entered its eighth

year, during which the team completed many excitinginitiatives that continued to promote Perth’s Eastern Regionas an ideal destination to local residents, interstate andoverseas visitors. Some of the projects undertaken were:

• Completion of the Swan Valley and Perth Hills Trails Discovery Guide and website (www.perthtrails.com.au). The aim of the project is to increase visitor numbers and spend in the region, by promoting 41 walk, cycle and bridle trails across three member Council areas. The Guide and website links users directly to the extensive tourism opportunities available in close proximity to the trails. The Guide is a major collaborative initiative between the EMRC, Shires of Kalamunda and Mundaring, City of Swan, the Department of Environment and Conservation, Lotterywest and the Department of Sport and Recreation. The Guide has been stocked by retailers throughout the region and across Perth.

• Production of the 2006 Regional Calendar of Events, which included nature-based recreational and tourism attractions in the region. The size of the calendar and print run was increased to meet demand from the public and to cater for the vast array of events held in the region. The calendar was distributed to over 130,000 households in the region and surrounding areas.

• Updates to the Perth Tourism website (www.perthtourism.com.au) were made, with innovative improvements that better showcase Perth’s Eastern Region through advanced database search facilities and free self-managed tourism operator listings, all presented in an easy-to-use and visually appealing format.

• Continued development of an annual visitor research programme, with input and advice from key tourism and Council stakeholders. The programme will be implemented by the EMRC and will produce a consistent comparable set of data for the Swan Valley and Perth Hills. This data will allow the EMRC and other regional stakeholders to identify and evaluate new initiatives and monitor the success of annual events.

• Increased support for the 34th Avon Descent by providing spectator infrastructure and facilitating a joint application to Lotterywest for funding the Councils’ Community Fun Days. The EMRC is extremely grateful forthe $137,594 provided by Lotterywest to support the community activities that complemented the 2005 Avon Descent.

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27Risk Management Services

The Risk Management team assists member Councils andother clients to prevent accidents, injuries and losses in theirworkplaces. It does this by helping to identify risks anddevelop practical plans to deal with them. Operating since1993, the Service delivers safety and risk management trainingcourses as well as providing consultancy services to meet theindividual needs of clients. The training courses equip staffwith the skills they need to deal with hazards they face in theworkplace, whilst the team’s consulting work supports thedevelopment of the client’s risk management plans and helpsthem stay abreast of legislative changes and new safetyrelated practices.

2005/2006 Highlights and AchievementsDuring the year, the Risk Management team continued to

supply a range of valuable training and consulting services toboth member and client Councils, as well as within the EMRC.Turnover in Risk Management Service staff later in thefinancial year created some challenges in maintaining thecontinuity of services, while at the same time assisting toachieve a more economical match between the supply ofservices and demand from member and client Councils. TheService continued to facilitate the reduction in accidentnumbers and costs.

Risk Management TrainingTraditional training courses such as Safety Inductions,

Manual Handling, Emergency Response for Wardens andTraffic Management were offered throughout 2005/2006.During the year, the EMRC became a WorkSafe WAauthorised provider of the new Safety Awareness Training forthe Construction Industry. Being mandatory training, thedemand began to build toward the end of 2005/2006.

In Traffic Management Training, the EMRC remains one ofthe main four ‘Registered Training Organisations’ authorisedby Main Roads WA to deliver their training requirements.There was much deliberation by Main Roads and other keystakeholders regarding State-based traffic managementtraining (as opposed to nationally recognised training) duringthe year and the issue was still unresolved at the end of the period.

This year saw a slight increase (0.8%) in the number ofworkers compensation claims for the six member Councils;

however, the services provided by the team have resulted inan 11.6% decrease in the number of claims since 2003/2004,as well as a substantial drop in claims costs. For some of theCouncils, there was extensive work carried out on safetysystems to prepare these Councils for future WorkSafe awardassessments.

Risk Management ConsultingDuring 2005/2006 the EMRC became a member of

the Human Resources Panel contract for all StateGovernment agencies.

With respect to the EMRC itself, the Safety AdvisoryCommittee and Risk Management Coordination Committeewere again instrumental in driving the reduction of risk withinthe EMRC’s operations. The EMRC had three workerscompensation claims and no lost-time injuries for the year,which was a significant improvement on the previous year.

Performance BenchmarkingThe EMRC Inter-Council Comparison Scheme continued

to benchmark performance in the area of injury preventionand fleet accidents. The number of Councils participating inthe scheme was 17, with Kalgoorlie-Boulder joining during theyear. This scheme provides local government with a valuableyard-stick against which to measure the performance ofindividual Councils. While not fixing any risk problems, theprocess has shown itself to be a valuable tool in motivatingmanagement to direct more of their time and effort towardrisk management matters.

Risk Management Publications and Documents

The EMRC Risk Management Safety Handbook wasupdated during the year and continues to be a popular toolused by both member and non-member Councils throughoutWestern Australia. Over 1,000 copies were sold throughoutthe year, and it has proven to be an important element of the induction process for more than 15 Councils.

A special project completed during the year was thedevelopment of a new Occupational Health & Safety (OH&S)Code of Practice for the Waste Management AssociationAustralia (WA). Input was provided from all Risk Managementstaff and helped to consolidate the expertise the Service hasin this area. Re

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2005/2006 Highlights and AchievementsCardno BSD/Meinhardt Joint Venture continued to

progress the consultancy contract tasks, especially thecommunity consultation process, the analysis of sites andtechnologies being considered, the selection criteria and themulti-criteria process to consider community issues andweight community choices of sites and technologies.

Work completed or progressed in 2005/2006 included:

• Completion of two regional workshops to consult the community on the Resource Recovery Project. The first in October 2005 at the Burswood Resort Convention Centre, the second in February 2006 at the Midland Town Hall. Workshop findings and feedback was provided to all regional workshop participants.

• Completion of a community survey across the region to validate the results of the regional workshops and to test community attitudes towards waste management.

• Conducted round two of member Council consultation on an outline of the project business plan and member Council agreements and financing options.

• Draft reports were prepared on site and technology assessment, waste collection systems and the financial model.

• EMRC Councillors, EMRC staff and member Council staff visited the eastern states to view resource recovery facilities and container deposit systems, as well as attend the Enviro. 06 Conference and Exhibition in Melbourne.

• Development and distribution of the 2006/2007 ResourceRecovery Guides to every household in the region.

Committees and Advisory GroupsDuring the year, the team continued involvement in the

Southern Metropolitan Regional Council’s Compost SteeringCommittee to oversee the development and marketing ofthe regional resource recovery centre compost.

Meetings of the Project Advisory Group, and Strategicand Secondary Waste Treatment Committee were held in2005/2006 to keep member Council officers and Councillorsinformed on the Project’s progress.

A new Committee was also formed in 2005/2006 - theRegional Waste Education Steering Group. This group comprises ofmember Council and EMRC officers, and was formed to implementwaste education initiatives across Perth’s Eastern Region.

Waste Management Community Reference Group

The Waste Management Community Reference Groupcontinued to meet and review critical aspects of the ResourceRecovery Project and the EMRC’s waste education initiatives.Key activities undertaken by the Waste ManagementCommunity Reference Group in 2005/2006 were:

• Previewing the arrangements and information to be provided at the resource recovery regional workshops.

• Actively participating in the two resource recovery regional workshops.

• Reviewing and providing input on the 2006/2007 Resource Recovery Guides.

• Previewing the community survey questions and methodology.

• Attending the annual Waste & Recycle Conference.

• Keeping informed on State Government initiatives regarding Extended Producer Responsibility Container Deposit Systems.

RESOURCE RECOVERY PROJECTThe Resource Recovery Project team is working to develop and implement a resource recovery system thatrecognises the importance of waste minimisation and maximises social, environmental and economicbenefits for the region. The project’s key objective is to have a fully operational resource recovery solutionin place by 2012 or sooner, which would involve a resource recovery facility and/or resource recovery park.

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Statutory Compliance ReturnThe Statutory Compliance Return for the period 1 January

2005 to 31 December 2005 was completed and lodged asrequired. Council was able to advise that it achieved a highlevel of compliance with all matters applicable to the EMRC’s operations.

National Competition PolicyThe Competition Principles Agreement (CPA) is a

contractual agreement between the Federal Government and all state and territory governments. As a result, localgovernment is committed to the CPA.

The CPA aims to ensure that all public enterprises operatein a transparent manner and in the best interests of the public. Under the CPA, public enterprises are required to review their operations to ensure they have nocompetitive advantage, or disadvantage, in comparison tothe private sector.

The EMRC supports the CPA concept. As such, a cost benefit analysis of our operations was conducted. The analysis concluded that none of our coreservices – operation of the Red Hill Waste ManagementFacility, Occupational Health and Safety Services, andEnvironmental Services – should be subject to CompetitiveNeutrality Principles.

Furthermore, the EMRC has not received notification that the Australian Bureau of Statistics has classified any of our operations as either Public Trading or Public Financial Enterprises.

No allegations of non-compliance with the principleshave been made against the EMRC.

Payments to employeesThe ‘Local Government (Administration) Regulations

1996’ prescribes under s19B that for the purposes of s.5.53(2g)of the ‘Local Government Act 1995’, the annual report of alocal government must contain the following information:

Plan for the futureSection 5.53(2e) of the ‘Local Government Act 1995’

requires local governments to provide an overview of theplan for the future of the district, made in accordance withs.5.56, including major initiatives that are proposed tocommence or to continue in the next financial year.

The ‘Local Government (Administration) Regulations1996’, s19C(9) Planning for the future – s.5.56 states that a localgovernment is to ensure that a plan for the future, made inaccordance with this regulation, applies in respect of eachfinancial year after the financial year ending 30 June 2006.Therefore, the EMRC’s Five Year Financial Plan is detailed onthe following page to outline the operating income andexpenditure for the period 2006/2007 to 2010/2011.

31STATUTORY REPORTS

(a) The number of the EMRC’s employees entitled to an annual salary of $100,000 or more:

4 Staff Members

$100,000 to $109,999

1 Staff Member

$110,000 to $119,999

2 Staff Members

$150,000 to $159,999

1 Staff Member

(b) The number of those employees with an annual salary entitlement that falls within each band of $10,000 over $100,000:

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33Forecast

Financial Summary 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Operating Income ($13,171,537) ($12,419,868) ($14,183,572) ($14,800,447) ($15,437,063)

Operating Expenditure $13,157,435 $12,128,676 $12,935,480 $13,240,119 $13,533,119

Normal Operating Result ($14,101) ($291,192) ($1,248,092) ($1,560,328) ($1,903,944)

Other Income ($5,623,704) ($4,493,369) ($4,773,851) ($5,285,861) ($5,325,666)

Other Expenditure $1,770,601 $1,080,675 $898,607 $1,175,045 $1,294,735

Change in Net Assets from Operations ($3,867,205) ($3,703,887) ($5,123,336) ($5,671,143) ($5,934,875)

Capital Expenditure $7,755,996 $2,383,696 $1,292,796 $1,499,296 $11,316,796

Net Operating and Capital Expenditure $3,888,791 ($1,320,191) ($3,830,540) ($4,171,847) $5,381,921

Current as at the adoption of the 2006/2007 Budget on 24 August 2006.

Please note that all future year expenditure details are presented in 2006/2007 values.

FIVE YEAR FINANCIAL PLAN

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36 37ACTUAL

2005/2006 $

BUDGET 2005/2006

$

ACTUAL 2004/2005

$

OPERATING REVENUE

Governance 250,609 447,676 526,145

General Purpose Funding 1,096,772 833,482 819,036

Community Amenities 13,981,140 12,043,222 10,123,196

Other Property and Services 1,930,358 1,790,843 1,734,028

TOTAL OPERATING REVENUE 17,258,879 15,115,223 13,202,405

OPERATING EXPENSES

Governance 1,450,204 1,721,329 1,655,953

Community Amenities 7,682,676 8,380,243 6,548,050

Other Property and Services 2,861,374 2,712,576 2,321,498

Economic Services 0 0 28,681

TOTAL OPERATING EXPENSES 11,994,254 12,814,148 10,554,182

OPERATING SURPLUS 5,264,625 2,301,075 2,648,223

OPERATING STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006

ACTUAL 2005/2006

$

ACTUAL 2004/2005

$

CURRENT ASSETS

Cash and Cash Equivalents 22,440,767 16,788,595

Trade and Other Receivables 1,759,980 1,187,942

Inventories 33,456 21,046

Other Assets 28,916 20,835

TOTAL CURRENT ASSETS 24,263,119 18,018,418

CURRENT LIABILITIES

Trade and Other Payables 759,984 559,177

Provisions 701,309 643,306

Borrowings - Current Portion 302,509 284,370

TOTAL CURRENT LIABILITIES 1,763,802 1,486,853

NET CURRENT ASSETS 22,499,317 16,531,565

NON CURRENT ASSETS

Property, Plant and Equipment 11,643,138 12,605,293

Work in Progress 188,126 126,416

TOTAL NON CURRENT ASSETS 11,831,264 12,731,709

NON CURRENT LIABILITIES

Provisions 914,887 809,697

Borrowings - Long Term Portion 321,804 624,312

TOTAL NON CURRENT LIABILITIES 1,236,691 1,434,009

NET ASSETS 33,093,890 27,829,265

EQUITY

Accumulated Surplus 14,344,281 12,881,925

Cash Backed Reserves 18,749,609 14,947,340

TOTAL EQUITY 33,093,890 27,829,265

STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2006

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38 39 ACTUAL

2005/2006 $

BUDGET 2005/2006

$

ACTUAL 2004/2005

$

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Flows from Normal Operating Activities

Cash receipts in the course of normal operations 13,004,092 10,423,996 10,622,300

Cash payments in the course of normal operations (9,729,736) (8,557,746) (9,092,333)

Interest receipts - Municipal Cash 167,918 83,980 132,893

Interest payments - Loan Ascot Place (52,670) (44,000) (69,721)

Net Cash Provided by Normal Operating Activities 3,389,604 1,906,230 1,593,139

Cash Flows from Other Operating Activities

Resource Recovery

Cash receipts from secondary waste charge 2,982,189 2,465,744 2,366,704

Cash receipts from resource recovery project 12,106 0 0

Cash payments for resource recovery project (566,878) (766,284) (428,847)

Interest receipts - secondary waste investment 484,442 411,060 292,195

Other Activities

Interest receipts - other restricted investments 444,412 338,442 393,948

Net Cash Provided by Other Operating Activities 3,356,271 2,448,962 2,624,000

NET CASH PROVIDED BY OPERATING ACTIVITIES 6,745,875 4,355,192 4,217,139

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from sale of assets 987,732 1,392,000 451,315

Cash payments for acquisition of assets (1,797,065) (5,621,400) (1,940,061)

NET CASH PROVIDED BY INVESTING ACTIVITIES (809,333) (4,229,400) (1,488,746)

CASH FLOWS FROM FINANCE ACTIVITIES

Cash payments - loan principal repayments (284,370) (284,369) (267,318)

NET CASH USED IN FINANCING ACTIVITIES (284,370) (284,369) (267,318)

SUMMARY OF CASH FLOWS

Cash at the beginning of the year 16,788,595 16,788,595 14,327,520

Net increase (decrease) in cash held 5,652,172 (158,577) 2,461,075

CASH AT THE END OF THE YEAR 22,440,767 16,630,018 16,788,595

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2006

ACTUAL 2005/2006

$

ACTUAL 2004/2005

$

ACCUMULATED SURPLUS

Balance at the beginning of the year 12,881,925 13,131,917

Change in net assets from operations 5,264,625 2,648,223

Transfers from reserves 2,192,056 1,459,390

Transfers to reserves (5,994,325) (4,357,605)

Balance at the end of the year 14,344,281 12,881,925

RESERVES - CASH BACKED

Balance at the beginning of the year 14,947,340 12,049,125

Amount transferred from accumulated surplus 5,994,325 4,357,605

Amount transferred to accumulated surplus (2,192,056) (1,459,390)

Balance at the end of the year 18,749,609 14,947,340

TOTAL EQUITY 33,093,890 27,829,265

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2006

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EMRC ANNUAL REPORT 2005 / 2006

Income StatementTotal Operating Revenue of $17,258,879 as at 30 June 2006

is approximately $4,056,000 greater than the 2004/2005actual operating revenue and approximately $2,144,000above budgeted provisions.

Total Operating Expenses of $11,994,254 areapproximately $1,440,000 greater than the 2004/2005 actualoperating expenses and approximately $820,000 belowbudget for 2005/2006.

The Operating Surplus resulting from operations of$5,264,625 is approximately $2,616,000 more than the level of2004/2005 and approximately $2,964,000 greater than the2005/2006 budget.

Balance SheetCurrent assets as at 30 June 2006 increased

approximately $6,245,000 in comparison to the level statedas at 30 June 2005. This relates to increased cash receiptsfrom operations.

Current liabilities as at 30 June 2006 increasedapproximately $277,000 in comparison to the level stated asat 30 June 2005.

The value of cash backed Reserves increased byapproximately $3,802,000 in comparison to the level statedas at 30 June 2005. This is primarily as a result of the low levelof funds utilised from Reserve funds for capital expendituretogether with transfers made to the Reserve funds during the2005/2006 financial year.

Overall equity increased during the 2005/2006 financialyear by $5,264,625 to $33,093,890.

Cash Flow Statement The cash flows used in investing activities for 2005/2006

reflects a decrease of approximately $143,000 capitalexpenditure from the 2004/2005 financial year.

Net Cash provided by Operating Activities of $6,745,875reflects an increase of $2,528,736 from the 2004/2005 value of $4,217,139.

The overall impact on the cash position at the close ofthe financial year is an increase of $5,652,172 to $22,440,767.This is represented by restricted cash and investments of$18,967,379 and unrestricted cash and investments totalling $3,473,388.

Concise Financial Report The concise financial report cannot be expected to

provide as full an understanding of the financial performance,financial position and financing and investing activities of theEMRC as the full financial report.

Further financial information can be obtained from thefull financial report on request to the EMRC.

NOTES FOR CONCISE FINANCIAL REPORT

40

Retu

rn to

Con

tent

s

BULLSBROOK

MUNDARING

STONEVILLEPAKERVILLE

MIDLAND

SwanJOONDALUP

W

CHIDLO

MT HELENA

SAWYERS VALLEYMORLEY

PERTH

STIRLING

CANNINGTON

FREMANTLE

Mundar

Kalamunda

Belmont

Bayswater

ARMADALE

QUINNS ROCK

Bassendean

Page 23: 2005/2006 EMRC Annual Report

VISION To be a responsive and innovative leader in assisting Perth’s Eastern Region to be a great place to live, work, play and do business.

MISSION The Eastern Metropolitan Regional Council, by partnering with member Councils, and other stakeholders, facilitates strategies and actions for the benefit and sustainability of the region.

www.emrc.org.au