Annual 2007 / 2008 Report - Shire of Esperance...2007 / 2008 Contents Our Mission Page Shire President’s Report 4 CEO’s Report 7 Elected Members and Executive 9 Executive Services

Annual

Report

Shire of Esperance

2007

/ 20

08

2007/08 Annual Report - Page 2

2007

/ 20

08

Contents

Our Mission

Page

Shire President’s Report 4

CEO’s Report 7

Elected Members and Executive 9

Executive Services 10

Community Services 16

Development Services 26

Engineering Services 30

Corporate Services 35

Financial Report 40

The spirit of Esperance is unique, we take pride in being a creative, caring, and supportive community. We live in a diverse and dynamic region with outstanding opportunities for all. As custodians, we are committed to protect our spectacular natural environment. Esperance has a sense of community ownership with a commitment to determine its own direction. We make it happen!

The Shire of Esperance will listen to its people and provide services in a caring, responsive and consultative manner through Councillors and staff that are well equipped to meet community needs, and show leadership in development at regional and higher levels.

Our Vision

The 2007/08 Shire of Esperance Annual Report features

rich and diverse imagery by both professional and

amateur photographers.

The imagery melds every day life with spectacular scenery

to capture the Essence of Esperance.

We hope that once Council has reported to the WA Planning Commission, the new Scheme can be supported by the State Government and implemented in early 2009. One of the challenges that we face each year is balancing the needs of a growing community with available resources. In particular, the past year has seen a huge increase in fuel costs, subsequently impacting on transport costs. Council has reviewed budgets and cut costs where possible, however we also believe that excellent service delivery to the community needs to be maintained. As a consequence, and in order to balance the 2008/2009 Budget, we have elected to have a rate increase significantly higher than in previous years. The Council is the custodian of many community assets, and they all require care, maintenance, and whole-of-life planning. Council has focussed on asset management plans in recent years to ensure that we are providing sufficient funds to adequately maintain roads, footpaths, buildings etc. Each year has seen increased allocations for roads, streets and buildings, yet we recognise that the community would like to see more done.

It is with pleasure that I present to you the Annual Report for 2007/2008 for the Shire of Esperance. The past 12 months have again presented a number of challenges as well as successes, and this Annual Report illustrates our performance over this period. The Shire has enjoyed increased growth during the past year, with the construction of many new high-quality residential and commercial buildings. It is envisaged that this growth will continue because of the ever increasing demand for permanent and rental accommodation. The development of BHP Billiton’s Ravensthorpe Nickel Operation (RNO) has resulted in many new families having relocated to Esperance; not only as employees of RNO, but also to work in support industries as well as becoming a part of the increasing general service industry of Esperance. We welcome all who have joined our communities over the past year, and trust that you will enjoy the lifestyle that Esperance provides and remain here for a very long time. I am sure that with the number of new projects that are currently in the pipeline, such as the harvesting of plantation timbers, two oil-from-coal projects at Scaddan and Salmon Gums, as well as various other mining projects in the north and east of our district, we will be welcoming many new people in the future. Councillors and staff are committed to managing the challenges of rapid expansion. We recognise the importance of having a new Town Planning Scheme, but continue to be frustrated at the delays of State Government departments in progressing the issue. After four years, we have finally been given permission to advertise the draft Town Planning Scheme No. 23 and Local Planning Strategy. A number of public submissions have been received, and we thank those members of the public who responded.

Shire President’s Report


Shire President’s Report (cont.)

In June, following the Varanus Island gas explosion, which impacted on our gas supply, we made the decision to bring forward a planned closure of the Bay of Isles Leisure Centre to undertake major repairs to the 25m lap pool, which was losing 150,000 litres of water per day. The pool has served the community extremely well for 35 years, but unfortunately needed major repair, with pipe work around and under the pool in extremely poor condition. A team of Shire workers under the control of Mr John Crawley have worked diligently to remove all failed pipe work and replace it with new improved equipment, implement improvements for future management, as well as address higher standards as required by the Health Department of WA. When the pool is reopened in late 2008, we know that it will provide a greatly improved environment for all who recreate at the Centre. The costs to undertake this work will be significant, but have been accommodated within the 2008/2009 Budget. While focused on financial matters, I am pleased to report that Council has all of its investments with the Commonwealth Bank of Australia. Much media focus has been on Councils who have investments in Lehman Brothers and other institutions that are exposed to the sub prime financial crisis in the US. Fortunately, due to strong investment policies set by Council a number of years ago, the Shire has not been exposed. I would like to recognise the invaluable contribution made this past year by our volunteer community. It is fair to say that although we have unique issues associated with our isolation, it is perhaps because of this that we have so many dedicated and giving people who continue to make significant contributions to our quality of life.

Upgrade to the transport corridor is an ongoing lobby to State and Federal Government, and good progress has been made with design and planning. The community has been included through community consultation and stakeholder workshops. During the Federal election campaign, the Rudd Labor Government committed $60 million as a one-third share for the upgrade, and the Esperance Port Authority has committed an equal amount from industry. The WA Government has given strong support for the project and we trust they will announce a funding commitment soon. The upgrade, designed to separate local traffic from the heavy traffic of trucks and trains, will greatly improve the amenity of the town, improve safety for all, and improve transport logistics for product entering and leaving the Port. The October 2007 local government election was conducted by postal vote, and managed by the WA Electoral Commission. The aim was to make voting easier for electors, hence increasing voter participation and reducing staff workload. The percentage of votes returned in 2007 was 35.3% as opposed to 13.5% for the 2005 election. At that election, Cr Trevor Furniss was elected, with Cr George Starcevich elected in an extra-ordinary election in February 2008. All other retiring Councillors were re-elected. Louise Paterson and Ron Padgurskis had completed their terms and we thank them for their dedicated service.


Shire President’s Report (cont.) Council fully recognises the importance of a dedicated and professional staff. We are all proud of the great team that work for the Shire of Esperance, willingly doing “that bit extra” to ensure that services are of the highest quality. Over the past 12 months there have been a number of changes for various reasons. Chief Executive Officer Mike Archer finished his contract in January 2008 after nine years in that role. We thank him for his long and dedicated service. We were very fortunate to have Mal Osborne apply for the Chief Executive Officer position, who has subsequently taken up a five-year contract as the Shire’s new Chief Executive. Mal brings a variety of experience from his long career in local government, and previously in private enterprise. The senior executive team are enthusiastic and highly professional, and all staff members contribute to a dedicated team. I thank each and every one of them for their efforts. I also thank all my fellow Councillors for their dedication and commitment to their responsibility; always contributing in a positive manner to make the Shire of Esperance a better place for all. Finally, I thank my deputy Cr Beverley Stewart for her support and leadership, and the special support she has provided me over the past 12 months.

Cr Ian Mickel, AM, JP, FAICD

Shire President


It gives me great pleasure to report on the operational performance of the Shire of Esperance for the 2007/2008 financial year. The Annual Report reviews Council’s achievements for the past year in line with the Plan for the Future, the Strategic Plan and adopted Budget. During the 2007/2008 financial year, the Council further consolidated its strong financial position. This was achieved by the close monitoring of Budgets by staff during the year and it was pleasing to note the level of attention that staff have afforded to monitoring and reviewing their budgets. The past twelve months has seen a continuation of high levels of staff turnover and difficulties in the recruitment of staff. This presents challenges to the Council and Administration from a service delivery perspective, the completion of the capital works campaign, the creation of an additional cost burden and pressure on staff. However, we are pleased to welcome a number of new staff members to the Shire and are positive they will grow and develop to guarantee the Shire’s highly regarded professional and progressive reputation is upheld. In order to assist in staff attraction and retention, and to recognise the efforts of the current staff, Council agreed to review the Esperance Retention Allowance and increase it to account for annual indexation. A rostered day off system was also supported to enable staff to spend more time with their families and to attend to their personal business without any commensurate loss of customer service. The Shire has conducted a Gap Year Program, whereby local young people who are seeking to spend a year in the workforce

before commencing their tertiary studies, are employed by the Shire. This has worked exceptionally well, with two outstanding young ladies, in Eden McGill and Tori Castledine, having provided terrific service to the Shire, whilst increasing their workplace skills. This program will be continued whilst investigations are undertaken to consider a formalised Cadetship Policy. This will have the intention of bringing young people into the Local Government industry where it is hoped they will create a career for themselves. Much effort has been placed on driving Workplace Safety, and a new Occupational Safety and Health and Risk Management Committee has been formed, with staff representing all operational areas involved in identifying and solving any issues of risk. The various Shire works crews are to be congratulated on their work in managing a significant works program as well as maintaining the many facilities that the Shire is responsible for. The Council and all the Staff continue to strive higher quality environmental, community and economic outcomes for residents, visitors and future generations.

CEO’s Report


CEO’s Report (cont.)

The current review of the Local Planning Scheme, together with the preparation of the Local Planning Strategy will provide much of the framework to achieve those goals. Linked with the Shire’s Strategic Plan (2007-2027) and Plan for the Future, the future direction of Esperance is being purposefully managed. May I take this opportunity to thank each member of the staff for their dedication, hard work and commitment, which has assisted the Shire to achieve the results of the 2007/2008 year. Additionally, I wish to recognise the efforts of Michael Archer, the previous Chief Executive Officer, for his commitment and efforts during his time with the Shire of Esperance. I also wish to thank the Council for providing me with the privilege of being the Chief Executive Officer of the Shire, a position I took up in January of this year. My appreciation is also extended to the Councillors, especially the Shire President, Cr Ian Mickel, for their guidance and support. We have much to undertake for the betterment of Esperance in the 2008/2009 year, and I look forward to working with the Staff, the Council, and especially the Community, in achieving the goals set by Council. There is no doubt in my mind, that partnering with the Community, the State and Australian Governments and the corporate sector, is the way “we will make it happen”.

M J (Mal) Osborne Chief Executive Officer


Elected Members and Executive

Shire President

Cr Ian Mickel, AM, JP, FAICD

Council Standing Committees

Engineering and Development Services Committee

Meets on the third Tuesday of the month at 9.00am.

Deals with: Traffic management and planning, road construction and maintenance, drainage, council reserves, health local laws including meat inspection services, building and town planning applications.

Corporate and Community Services

Meets on the third Tuesday of the month at 4.00pm.

Deals with: Financial and administration issues such as budgets & accounts, governance issues as well as issues relating to Ranger Services, Library Services, Community Arts/Cultural Services, Esperance Home Care, and the Bay of Isles Leisure Centre.

Executive Management Team

Councillors

Deputy Shire President

Cr Beverley Stewart, JP

Cr Tony Ietto Cr Peter Paxton Cr Wayne (Buck) Rodgers Cr Christine Smith

Cr Ron (Doc) Reynolds Cr Nigel Walker Cr Brian Pearce Cr Trevor Furniss Cr George Starcevich

Mal Osborne

Chief Executive Officer

Rod Hilton Doug Pearson

Executive Manager Community Services Executive Manager Engineering Services

Darren Kennedy Richard Brookes

Executive Manager Corporate Services Executive Manager Development Services


Executive

Services Governance

Human Services

Major Projects

Strategic Planning

Chief Executive Officer

Mal Osborne

Executive Services Team

Khai Bui

Janet Done

Beverley Hoey

Leigh Scott

Members

The Council of the Shire of Esperance consists of eleven (11) Elected Members. Each is elected for a four year term. Elections are held every two years with half of the Council seats being contested each time. The Council is divided into two wards, with the Town Ward represented by seven (7) Councillors and the Rural Ward represented by four (4) Councillors. The biennial Local Government elections were held on 20 October 2007. The Shire of Esperance had three vacant seats in the Town Ward (retiring Councillors Ron [Doc] Reynolds; Brian Pearce; and Louise Paterson), and two vacant seats in the Rural Ward (retiring Councillors Ron Padgurskis and Nigel Walker). Cr Ron (Doc) Reynolds and Cr Brian Pearce both re-nominated for the Town Ward, and with there being no further nominations, both Councillors Reynolds and Pearce were declared elected unopposed for a term of four (4) years to October 2011. The two vacant seats in the Rural Ward, saw Councillors Ron Padgurskis and Nigel Walker re-nominated, along with a nomination from Mr Trevor Furniss. The result of the election saw Nigel Walker and Trevor Furniss being elected to represent the Rural Ward for a term of four (4) years to October 2011. At a Special Council Meeting held on 24 October 2007, Cr Ian Mickel was re-elected as Shire President and Cr Beverley Stewart re-elected as Deputy Shire President for 2007 to 2009. 28 February 2008 saw an extra-ordinary election held for the vacant seat in the Town Ward, attracting the following nominations: Ann Green; Sherriden Mackenzie; George Starcevich; and Roger Mansell. Following the election, George Starcevich was declared the successful candidate to represent the Town Ward for a term of four (4) years to October 2011. Town Ward: Cr Beverley Stewart, Deputy President (Retiring 2009); Cr Wayne (Buck) Rodgers (Retiring 2009); Cr Christine Smith (Retiring 2009); Cr Peter Paxton (Retiring 2009); Cr Ron (Doc) Reynolds (Retiring 2011); Cr Brian

Executive Services

Pearce (Retiring 2011); Cr George Starcevich (Retiring 2011). Rural Ward: Cr Ian Mickel, Shire President (Retiring 2009); Cr Tony Ietto (Retiring 2009); Cr Nigel Walker (Retiring 2011); Cr Trevor Furniss (Retiring 2011). The Council meets on the evening of the fourth Tuesday of every month as part of a monthly business cycle, with Council meetings being open to the general public. Reports to the Council and its Committees are the formal method by which the administration provides advice to the Elected Members. The majority of business is dealt with by two Standing Committees made up of Elected Members (the Corporate and Community Services Committee; and the Engineering and Development Services Committee). These Committees consider matters relevant to their portfolios and subsequently make recommendations to the Council.

Mal Osborne, Shire CEO


Members (cont.)

Membership of Council’s two (2) Standing Committees during 2007/ 08 were as follows: Engineering & Development Services: Councillors Mickel, Rodgers, Smith, Furniss, Paxton & Ietto. Corporate & Community Services: Councillors Mickel, Stewart, Pearce, Reynolds, Walker & Starcevich. Agendas for Council and Standing Committee meetings are made available to members of the

Executive Services

public on the Shire’s website, as well as at the Shire Administration Offices and Library. Minutes of all Council and Standing Committee meetings are also publicly available. The following table details Councillor attendance at meetings of the Engineering & Development Services Committee, the Corporate & Community Services Committee and Audit Committee, as well as Ordinary and Special meetings of Council held throughout the 2007/08 financial year:

Ordinary

Meetings of

Council

(12)

Special

Meetings of

Council

(6)

Engineering &

Development

Services

Committee

Meetings

(11)

Corporate &

Community

Services

Committee

Meetings

(11)

Audit

Committee

Meetings

(1)

Cr Mickel 12 6 10 8 1

Cr Stewart 11 6 7 (as deputy) 10 1

Cr Reynolds 11 4 6

Cr Ietto 11 5 9 5 (as deputy) 1 (as deputy)

Cr Walker 10 6 5 (1 as deputy) 6

Cr Pearce 12 6 1 (as deputy) 10 1

Cr Paxton 12 4 10

Cr Rodgers 9 5 8 3 (as deputy) 1 (as deputy)

Cr Smith 11 6 9 3 (as deputy)

Cr Furniss

(elected Oct 07)

8 2 5

Cr Starcevich

(elected Feb 08)

3 2 4 1

Cr Padgurskis

(retired Oct 07)

3 1 2 (as deputy) 4

Cr Paterson

(retired Oct 07)

2 1 3


The Year in Review

July 2007 Council agrees to allow all full-time and

permanent part-time employees free access to the Bay of Isles Leisure Centre inclusive of one free personal fitness assessment each financial year and free crèche facilities. This to encourage staff to improve their health and fitness.

Council agrees to retain the Visitors

Information Centre in its current location for the time being, and endorses the preparation of a costed plan for the expansion of the Visitors Centre building to meet future market demands. This includes a costed works program for enhancements to the Museum Precinct to include the expansion of the Dempster Street car park by leveling the grassed mound, and extensions to the pedestrian pathways either side of the Sound Shell amphitheatre complete with directional signs.

Council continues its support of the Museum

Village Precinct with the upgrade of the Village Café and the Blacksmith Shop, as well as an upgrade of electricity supplies to the Precinct to support all the businesses therein.

Council agrees to the establishment of a CEO

Selection Committee comprising five Elected Members for the purpose of CEO Recruitment and to recommend a preferred applicant to Council.

August 2007 Council endorses the design of the Southeast

Region Gateway Entry Statements. September 2007 Council supports an amendment to the Town

Planning Scheme No. 22 to change the residential density codes within the Esperance Townsite in accordance with the draft Local Planning Strategy and the proposed new Town Planning Scheme No. 23.

Council agrees to holding an extraordinary

election to fill the vacant position within the Town Ward.

Executive Services

Council agrees to act as the banker for the distribution of funds received from the WA Government for the Esperance Community Alliance Recovery Campaign promotion.

Council endorses the concept plans for the

proposed new Esperance Indoor Sports Stadium at the Greater Sports Ground.

October 2007 Mal Osborne is appointed as the new CEO

of the Shire of Esperance. December 2007 Council supports the establishment of a

Spin Room and associated classes at the Bay of Isles Leisure Centre.

Council farewells CEO Mike Archer after

nine years as the CEO of the Shire of Esperance.

January 2008 Mal Osborne commences duties as CEO of

the Shire of Esperance. Council resolves to proceed with the Shire

of Esperance Town Planning Scheme No. 23 and the Shire of Esperance Local Planning Strategy, inclusive of modifications as outlined by the Minister for Planning and Infrastructure.

Council resolves that in order to facilitate

the construction of the Indoor Sports Stadium, it needs to commence the road closure process for a portion of Black Street under Section 58 of the Land Administration Act 1997.


The Year in Review (cont.)

January 2008 (cont.) Council endorses the landscaping concept

plans for Stage 2 of the Flinders residential development and agrees to the naming of public open space in Stage 2 as “ Investigator Park”.

Council agrees to the implementation of a

Port Access Implementation Group to fast track improvements to the Access Corridor.

Council agrees to oversee any community

funding that may be forthcoming from Magellan Metals Pty Ltd, and continues to maintain dialogue with Magellan Metals Pty Ltd with a view to gaining additional funding for the betterment of the community.

February 2008 Council supports an entry in the Triple J

One Night Stand Competition. Council supports the Lingalonga Early Years

Learning Centre Inc. with a $1,500 contribution towards asphalt sealing works.

Council supports the development of a

structure plan by the Department of Planning and Infrastructure for Bandy Creek Harbour, and agrees to work with Department staff to develop a scope of works, timelines, and deliverables for the project.

Council supports the registration of the

Railway Goods Shed with the Heritage Council.

Council adopts the Esperance Master Trails

Master Plan 2007-2017. March 2008 Council agrees to borrow up to $1.2m for

the purpose of constructing infrastructure in relation to the development of the Shark Lake Industrial Park.

Council agrees to undertake sampling of

parks and playgrounds within an identified

Executive Services

area being potentially contaminated with lead.

Council commits to the preparation of a

Memorandum of Understanding between the Shire, the Adventureland Park Committee Inc. and the Miniature Railways Committee Inc. dealing with the roles and obligations of each group within the Ralph Bower Adventureland Park area .

Council supports the acquisition of the Old

Hospital building to be relocated within the Museum Park Village Precinct.

April 2008 Council supports the formation of a Working

Group to consider and recommend suitable design works, costing schedules and the implementation of the Esperance Townsite Foreshore Redevelopment Plan.

Council endorses the recommendation of

the Esperance Foreshore Erosion Steering Committee that Option 3, Headland Development at the base of the Tanker Jetty be subject to: the design of the structure retaining sufficient sand on the town beach to minimise the need for truck carted sand replenishment; and that the design meets the requirements of the Esperance Townsite Foreshore Redevelopment Master Plan.

Council supports a delegation to St Martin de

Re to commemorate the 20-year twin town relationship and to explore the possibility of expanding the current student exchange to include cultural, tourism, recreational and economic ties.


The Year in Review (cont.)

May 2008 Council supports the gazettal of Lake

Quallilup as a water ski area. Council supports expanding the delegation

to St Martin de Re to include a representative from each of the Lions Club of Esperance, Esperance Chamber of Commerce & Industry, Esperance Regional Tourist Association, Alliance Francaise Esperance, and the Esperance Senior High School, with financial support of up to $1,200 per person.

Council resolves to defer any commitment

to construct the new Indoor Sports Stadium for 12 months to enable financing options to be reassessed and consolidated.

Council commits $140,000 to assist with

repairs to the lap pool at the Bay of Isles Leisure Centre.

Council supports the proposal of the

Festival of the Wind to install public seating along the Esperance Bay foreshore as part of the Festival for 2009.

June 2008 Council supports the development and

revitalisation of Adventureland Park, Flinders subdivision, Treasure Road and Salmon Gums Community Hall playgrounds over the next three years.

Executive Services


Jayne Arnold

Erica Austen

Dale Burgess

Sarah Downe

James Hilton

Thuruiyya Ibrahim

Taryn Jackson

Karen Milligan

Chris Oversby

Renae Rance

Jason Rhodes

Jim Robinson

Robbie Storch

German Ugarte

Jenny White

Homecare Staff

Library Staff

Visitors Centre Staff

Volunteer Resource Centre Staff

Community Services

Home and Community Care

Library and Information Services

Ranger Services

Recreation Services

Tourism and Culture

Volunteer Management Services

Executive Manager Community Services

Rod Hilton

Community Services Team

Community

Services

Community Services

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

Esperance Public Library Loans The Library loaned 132,737 items from July 2007 to June 2008. Resources The Library has over 25,000 items for loan comprising: Books; Talking Books on cassette or CD; DVD’s; Videos; CD ROM’s; Music CD’s; Magazines; Comic books; Jigsaws; Children’s Activity Bags (for travel or sick

children); and Literacy Packs. Also available are newspapers, Council information, ABS information and a wide variety of pamphlets and brochures on a multitude of subjects. Services The Library offers: Public access computers available for

Internet access, Word Processing, Scanning and other software uses;

A public Fax service; Inter-Library Loans to access items from

other libraries across the state, interstate, and sometimes overseas; A housebound delivery service; Community Information database; Play Stations and PC’s for Computer Games

in Teenage and Children’s Areas; and Children’s Activities -

Toddler Time; Baby Bounce Rhyme Time; Story Time; Chess Club; Holiday Activity Sessions; and Born to Read.

Staff The Library is staffed by one full-time professional Librarian, as well as one full-time and five part-time Customer Service Officers. In addition there are over a dozen Volunteers who assist with shelving, cleaning disks, children’s activities and newspaper indexing. The Esperance Library Friends (ELF) group was established in 2007 and their mission is the support, improvement and promotion of the Library. To date they have been responsible for organising a State Library Discard Book Sale; fundraising for cancer Research through Australia’s Biggest Morning Tea events and Daffodil Day; and the Lisa Forrest Visiting Author event in May 2008.

Rod Hilton

Executive Manager Community Services


Library (cont.) Building External steel columns were installed in June 2008 to ensure the continued stability of the Library building and enable further extension work to be planned for the future. Internally, a new Teenage Space was constructed on the Mezzanine Floor which houses a variety of resources for teenagers including a Play Station and a computer for games, Internet access and homework purposes.

2007/08 Highlights National Science Week August 2007 Themed “Stars in your eyes!” the mysteries of the universe were brought to life through a series of fun sessions for younger children. After-school activities for the 6 – 10 age group included making Glowing Gifts, trying some Cosmic Cooking and devising Crazy Concoctions. For the under 6 age group, daytime sessions made Glitter Stars and Star Cookies in a Star Light Star Bright story time. The main event was an “Out of This World” Star Gazing Evening led by guest presenter “Captain Derek”, where over 50 young ‘cosmonauts’ boarded the Starship Jayne Arnold (a sturdy and loyal vessel), for an evening of fun, facts and frolics, including making “Star Pictures” with sparklers and receiving Galaxy

Community Services Goodie Gift Bags. Over 180 children and parents participated in the week’s activities. Daffodil Day August 2007 The ELF’s ordered and sold 500 bunches of fresh daffodils around the Shire in a well coordinated and marketed venture on Friday 24 August. They also held a Plant & Produce Stall on the library lawn and their dedicated efforts raised $3,000 for cancer research. BankWest Seniors’ Week October 2007 This year we introduced the “Living Library” concept whereby six people volunteered their time to be “booked out” for half or one-hour sessions at the Library to talk about their special subject to anyone who was interested. The volunteers were a mix of Seniors imparting well-earned advice and life experiences to all age groups, and young people prepared to assist Seniors with much in demand information about modern technology. The six “Living Library” subjects were “Find your Family (history)”, “Learn to paint or draw”, “Take up Bonsai”, “Travel Tips for Retirees” and two “Get Connected” sessions: “Email and Mobile Phones” or “Master your Ipod”. One session per day was offered in four half-hour booking blocks with all sessions having been booked out.

ELF’s - Australia’s Biggest Morning Tea


Library (cont.) 2007/08 Highlights (cont.) Seniors’ Computer Classes March-May 2008 As a result of the demand by Seniors confounded by new technology the Library, staff partnered with the Senior Citizens’ Centre to gain a grant from Telstra’s Connected Seniors program to run a series of classes aimed at helping Seniors to understand and use new technologies. For young people new technologies are a way of life, but Seniors can also enjoy the rewards of technology if given time and assistance until it becomes more familiar. The Connected Seniors program was created to help older Australians learn about new technologies to enable them to confidently use mobile phones and Internet to keep in contact with family, friends and the world around them. Over 100 Seniors expressed interest in the six week courses on basic Word Processing, Emailing, and Internet Research, while more computer literate Seniors also received training in Publisher and advanced emailing and computer management. At the end of the program, most seniors felt more confident with using computers and various software applications, and have now organised a Seniors’ Computer Help Club which meets regularly at the Centre. Due to ongoing demand, beginners’ computer classes are still held at the Centre and interested Seniors should contact the Centre if they are interested in attending.

Community Services

Lisa Forrest – Visiting Author May 2008 The Sunday Times Big Book Club evolved from a concept developed to promote reading and literature in South Australia in 2002. Each month a chosen Australian author travels around the country to meet readers and promote their new book. Lisa Forrest, a former Olympic swimmer and Commonwealth Games gold medallist, visited Esperance in May to promote her new book “Boycott”, which is based on her experiences at the boycotted 1980 Moscow Olympics. Fifty people attended her evening presentation and she also spoke to over 50 High School students the following morning. This was the Library’s first foray into a “Visiting Author” program and its success will ensure future visits and possibly an Author Residency involving workshops and more speaking engagements.

New Teenage Area - Play Stations in the Library! As a result of a grant from the Department of Industry and Resources, it was decided to create a dedicated space on the Mezzanine Floor of the Library for teenagers and young adults 12 - 25 years.

Seniors’ Computer Classes

Lisa Forrest at ESHS


Community Services

Library (cont.) New Teenage Area (cont.) The area has been partly perspexed for sound control and houses Young Adult resources as well as a Play Station 2 and a PC that is loaded with games, as well as having Internet access and Word Processing abilities. With comfortable furniture, a DVD player and sound system, the area can be utilised for many purposes, including discussion groups, teenage workshops, and supervised social events. The area is very popular, especially with teenage boys, and is working well with minimum supervision. A Play Station 2 and a Games PC have also been installed in the Children’s area for the younger children, which has proven to be equally as popular.

Ranger Services Staff Changes In August 2007, Senior Shire Ranger Richard Hearne retired and was replaced in November 2007 with Senior Ranger Jim Robinson. Telephone Enquiries Rangers dealt with a total of 4,285 enquiries during the year, broken down as depicted below:

Ranger Enquiries

Animal Control

Illegal Camping A total of 100 illegal campers were cautioned during the year and requested to move to an authorised camping ground. The Greater Sports Ground was again utilised this year as an overflow camping ground during Christmas, New Year and Easter due to the town’s Caravan Parks and camping grounds being full. Parking Rangers issued a total of 52 parking cautions during the year with no specific problem areas in town. Fire Control Rangers inspected a total of 98 vacant blocks during the fire season, and subsequently issued 43 reminder notices and seven infringement notices. Coastal Reserves All Coastal Reserves continued to be occupied to their maximum capacity during the summer months with maintenance carried out as per normal.

2007-08 2006-07 2005-06

Dogs Impounded

479

415

417

Dogs Returned to Owners

179

224

N/A

Dogs Euthanised

99

89

94

Feral Cats Euthanised

24 9

13

Attended to Stray Livestock

43

N/A

N/A

0

500

1000

1500

2000

2500

3000

Dogs

RSPCA

Livestock

Litter

Cats

Fire Control

Parking

Camping

General Enquires


Community Services

Recreation & Youth Services

Greater Sports Ground Redevelopment Update Over a period of approximately six years, Council has invested in reviewing the provision of sporting facilities on the Greater Sports Ground (GSG). The Council has endorsed a 20-Year Master Plan that is the guide for future facility provision on the GSG area with a view to meeting future demands and growth trends. As a part of this Master Plan, detailed designs for a new Indoor Sports Stadium were finalised in late 2007/08, with the project well positioned to soon go to tender. Council will review the financial capacity of the Shire to fund this project in 2008/09 based on the progress of the Flinders Estate residential development. Funding Partnerships with Sports Clubs Two development projects were jointly funded this financial year by the Shire, the Department for Sport and Recreation (DSR) and the associated sporting clubs: 1. Gibson Football Club undertook a

power upgrade and oval lighting improvements. The project cost a total of $117,000 with DSR contributing $35,000 and the Shire 15,000.

2. The Salmon Gums Development Group was funded to undertake a needs assessment and feasibility study for amalgamating the town hall, golf club, tennis club and badminton facilities into one complex. The project cost $17,000 with the Shire contributing $5,000 and DSR $5,700.

Playground Development A playground audit was undertaken during 2007/08 and the Shire’s Playground Strategy was reviewed. Council endorsed a number of Playground Reserves as priority consideration for development over the next three years, including Adventureland Park, Flinders Estate Reserve and Treasure Road Reserve.

Physical Activity Plan The Shire received $25,000 funding from the Premier’s Physical Activity Task Force to develop a Physical Activity Plan for the Shire. This project is being undertaken in partnership with WA Country Health, the GP Network, the Department of Sport and Recreation, and Active After Schools (Australian Sports Commission). The purpose of the Plan will be to develop interagency strategies to increase the health and wellbeing of the Esperance community, with a focus on increasing physical activity levels. The Plan will be finalised in late 2008. Winter Music Festival The Youth Advisory Group received a grant from the Shire’s Community Development Fund to introduce the inaugural Winter Music Festival for young people. The Festival, initiated at the close of the 2007-08 financial year, ran over two weeks providing a range of music entertainment and workshops. The project was designed and run by young people for young people and proved to be highly successful. Partners with the Youth Advisory Group included the Cannery, the Shire’s Youth Services and the Civic Centre.


Community Services

Bay of Isles Leisure Centre The Bay of Isles Leisure Centre has had a successful year with respect to the delivery of programs and services. There has been an increase in both the quality and range of programs and services offered and it is planned to continue this trend into the next financial year. In the wet area, Swimming School income was 12% above target, and the number of families using this service continues to grow annually. The success of the Swim School has offset both Pool Admissions and Pool Membership income which were down approximately 10%. This is largely due to the closure of the pool in one of it’s busiest times, but also due to a significant down turn in numbers in the community Swimming Club that is located at the Centre. The Centre will work with the Club in the next financial year to assist the Club to address this issue. The Health and Fitness area has started to show a significant improvement in membership and program income which has been a key target for improvement during 2007/08. Health and Fitness Program income has increased 25% on last year’s figures, and will continue to be a focus for improvement for the Centre. The projected deficit indicates a slight increase of $18,000 primarily related to the increase in the cost of labour, the cost of chemicals for the pool, software expenses, and the closure of the pools during the last half of June due to gas supply restrictions and subsequent pool repair works.

Tourism & Culture Visitor Centre A great year for the Esperance Visitor Centre with an impressive increase of 63% in commissions earned in accommodation bookings.

Recreation & Youth Services (cont.)

Working in partnership with Australia’s Golden Outback has helped enormously in the consolidation of our Visitor Centre as a reliable booking agency and first stop for visitors to Esperance. As a result of customer service and merchandising training in June, the Visitor Centre underwent a complete makeover and looks much bigger and is much more practical in its layout.

Civic Centre A year characterized with important changes, many events, and the implementation of a new management structure that will aim to streamline the overall operations of the centre. Taryn Jackson has been appointed to oversee administrative aspects of the centre and James Hilton is in charge of the building and the technical side of the theatre.

Visitor Centre Staff Cheryl Bow and Stephanie Carter

Theatre Technician James Hilton and Venue Administrator Taryn Jackson


Community Services

Tourism & Culture (cont.) Esperance Museum The Museum extensions are nearly complete and it is expected that it will be open to the public shortly. This area will be a completely renovated maritime exhibition depicting many passages of Esperance history. 2007/08 saw the completion of the Museum Village Park heritage walk booklet, which makes reference to the creation of the park, with a complete description of the historical importance of these buildings to the community.

Disability Services Access and Inclusion Plan In an endeavour to improve the Disability Access and Inclusion Plan implementation process, Council disbanded the Access and Inclusion Committee in October 2007 and replaced it with a staff Working Party. It is proposed that the former committee members and members of the public will join together in consultation to review and update the Disability Access and Inclusion Plan in December of each year. Prior to the committee being disbanded, members facilitated a public facility and events community survey to identify any key impacts for persons with disabilities.

The survey was concluded in December 2007. The winner of the $100 prize drawn from the 95 respondents was Mrs. C. Welke. The following recurring issues appeared throughout the responses: The need for self opening doors at the Visitors Information Centre; The Civic Centre stairs are an impediment to equal access; No provision for Disabled Parking at community events; Lack of a safe pedestrian crossing in the CBD; Trip hazards on slab footpaths and tanker jetty created by cracks and raised surfaces; Poor scooter access to the Bay of Isles Leisure Centre; Lack of footpaths in Taylor Street to the jetty, tearooms, mini train, and playgrounds; Public toilets are often unclean and entrances are too narrow for scooters; and The premier easy access toilets have doors that are difficult to open, restricted access for scooters, and are locked at night time. During May 2008, the Disability Services Working Party assessed the Disability Access and Inclusion Plan and prioritised its recommendations down to short term achievable and long term planning issues. Items that were beyond the capacity of the Shire to achieve were deleted.

Museum Curator Dorothy André with copies of the newly released Museum Village Park histori-cal walk booklet


Community Services

Disability Services (cont.)

Access and Inclusion Plan (cont.)

Significantly the Working Party is pleased to report the following outcomes during 2007/08: Council has agreed to contribute

towards the installation of a self opening door at the Visitors Centre;

A Disabled Access parking bay has been constructed beside the Employment Esperance office;

Kerb openings at the West Rail bus stop have been delineated in yellow for improved visibility;

CBD pedestrian safety has been improved by the installation of a protected road centre refuge in Demspter Street;

An architect has been engaged to design disabled change rooms and reception area modifications at the Bay of Isles Leisure Centre and easy access onto Twilight Beach;

Outcomes

Total number of

planned strategies

Number of strategies completed

Number of strategies partially

completed

Number of contractors undertaking

DAIP activity

Outcome 1: People with disabilities have the same opportunities as other people to access the services of and any events organised by a public au-thority.

7 2 4 0

Outcome 2: People with disabilities have the same opportunity as other people to access the buildings and other facilities of a public authority.

17 2 3 0

Outcome 3: People with disabilities receive information from a public authority in a format that will enable them to access the information as readily as other people are able to access it.

1 0 1 0

Outcome 4: People with disabilities receive the same level and quality of service from the staff of a public au-thority as other people receive from the staff of that public authority.

1 0 0 0

Outcome 5: People with disabilities have the same opportunities as other people to make complaints to a pub-lic authority.

2 0 2 0

Outcome 6: People with disabilities have the same opportunities as other people to participate in any public consultations by a public authority.

1 0 1 0


Community Services

Disability Services (cont.)

Access and Inclusion Plan (cont.) ACROD easy access car parking bays

have been repainted and signed with penalty information;

Senior Citizens’ car parking has been improved by the introduction of ranger patrols targeting non-member parking;

The Windich Street centre road me-dian strip crossing has been modified for scooters;

Kerb crossings have been con-structed at Phyllis Street & Goldfields Road; Pink Lake Road & Milner Street; and Reynolds & Burton Streets to provide improved scooter access;

The pedestrian refuge on Norseman Road & Gladstone Street has been increased in size and made safer;

The Library has installed additional shelving to improve access to books; and

Footpaths have been installed throughout the Nulsen area and the concrete slab path along the Espla-nade to Emily Street have been re-placed with pavers.

Dissemination of the Plan The Disability Access and Inclusion Plan is a public document, which is available on re-quest from Council’s Administration Offices or Library. It can be translated into alterna-tive formats for large print, audio or Braille and is also available electronically and via email upon request. The Plan is also avail-able to download from the Shire of Esper-ance website at www.esperance.wa.gov.au. Enquiries: Rod Hilton, Executive Manager Community Services

Community Services Home and Community Care Esperance Home Care’s financial position remains strong, with annual funding growth allowing the organisation to continue to meet the needs of frail older people and younger people with a disability living in the community. The organisation has experienced rapid growth over the past five years and will take the opportunity in the 2008/09 financial year to consolidate the current service program and establish changes to the organisational structure. Recurrent funding increased by $140,400 in 2007/08 and the opening of the $300,000 administrative building extension in May 2008 has provided capacity to make the necessary administrative changes to ensure the organisation can provide the most effective service possible to meet the needs of the growing number of people in the target group, which is expected to climb from its current level of 17% of people aged over 60 years, to 25% of the population by 2020. Our priority areas in 2008/09 are the support of people living in the community with memory loss, and the needs of men who find it more difficult to engage in social activities and are at greater risk of becoming socially isolated. Senior Citizens Centre The Senior Citizens Centre is continuing to be “The Place.” Statistics taken for the month of June 2008 show that 1,309 members used the centre in that month. Membership continues to grow, with the Centre now at 455 members. Having a volunteer hostess opening the office every morning is working well, and with the growth and popularity of the “Stay on Your Feet” exercise program (now with the support from hospital Physiotherapists), there are many phone calls and enquiries for new memberships . As a joint venture with the Library, the Centre was successful in obtaining a Telstra Connecting Seniors Grant that was used to hold computer lessons for seniors.


http://www.esperance.wa.gov.au/�

Paul Clifton

Priscilla Davies

Brendon Dowell

David Giles

Alan Gilpin

Richard Hindley

Peter Ibbott

Philip Jones

Nicholas Kleinig

Rose Riley

Chantal Spittle

Rob Suter

Naomi Wyllie

Building Services

Environmental Services

Health Services

Planning Services

Executive Manager Development Services

Richard Brookes

Development Services Team

Development

Services

Development Services

Council received a list of modifications to the Local Planning Scheme and Strategy from the Western Australian Planning Commission (WAPC), with the changes subsequently incorporated into these documents. Once the changes were made to the satisfaction of the WAPC, the Local Planning Scheme and Local Planning Strategy were advertised and work will continue to enable its final adoption. A significant review of the Town Planning Policy Manual commenced in December 2007 and has resulted in a rationalisation of existing controls as well as the development of a number of new policies to fill gaps in the regulatory framework. A significant number of development applications were received during the 2007/08 year with 477 development applications being received along with 28 subdivision applications receiving comment. Significant applications received in this period include the Bunnings Warehouse on Norseman Road, and 26 Holiday Accommodation units on the Esplanade adjacent the Jetty Motel. A compliance program has also commenced. This program is currently progressing through compliance issues with the industrial areas of town, with a particular focus on the sealing and marking of parking areas and landscaping.

Development Application Approvals

Building Projects During 2007/08 Council undertook a number of new building projects and additions to existing buildings. The second stage to the Home and Community Care building on Black Street was completed including the commercial laundry. The Men in Sheds facility was also extended to accommodate increasing patronage and to garage their buses for security. These developments will greatly improve Aged Care services to the community. The first stage of the marine extension to the municipal museum to house the pilot boat and other nautical theme exhibits has been completed at a cost of $334,000.

Town Planning

Richard Brookes

Executive Manager Development Services

Applications

Received

Applications

Determined

Development Applications

2007/2008 477 412

Subdivisions

2007/2008 28 N/A

Home Occupations

2007/2008 39 38 2007/08 Annual Report - Page 27


Building Maintenance

Council is in the seventh year of its building maintenance program. The program is funded from Council’s budget for the maintenance and preservation of its building infrastructure assets. Council allocated approximately $525,000 in 2007-08 for building asset maintenance. Major projects included: the upgrade of the School Masters Residence to be leased as a café; refurbishment and upgrade of the Blacksmith Shop for tenants; verandah and paving for the Courthouse; replacement of air handling units; emergency lighting at the Bay of Isles Leisure Centre; connection of several toilet blocks to the main sewer; re-cladding of Beaumont Hall; replacing the kitchen at the Scout Hall; upgrading the kitchen facilities at the Scaddan Hall; removal of old toilets from the Salmon Gums Hall after constructing new toilet facilities; construction of a patio area with a disabled ramp; upgrading of wiring to Grass Patch houses and the depot shed; upgrading the wiring at Canary Arts; replacing linoleum to non-slip in the Senior Citizens Centre; and the reupholstering of chairs in the Civic Centre auditorium. During 2007/08 the building industry within the Shire of Esperance was strong, with the total value of approvals issued highlighting consistent growth. Residential developments accounted for the majority of building work (as depicted in the adjacent table), with new residential dwelling approvals accounting for 62% of total building activity. In total, 96 new dwelling units were approved; a 3% decrease from the previous year. In total, 407 building licences were issued by the Shire of Esperance, worth approximately $41.19 million.

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

Breakdown of Building Approvals

2006/2007 2007/2008

DESCRIPTION No. VALUE

$ No.

VALUE

$

New Single Dwell-

ings/Duplexes 99 23,644,548 96 25,842,976

Alter to Dwellings 107 3,063,042 41 2,293,397

Industrial 14 4,754,729 7 6,233,951

Alter to Industrial 3, 38,000 7 360,521

Business 2 871,880 2 745,750

Alter to Business 10 175,593 5 204,000

Garages/Outbuildings 79 1,079,161 159 2,242,540

Alter to Garages/

Outbuildings 6 16,852 63 832,481

Flats/holiday

Alter to Churches

Sundry Buildings 52 924,435 26 337,450

Public Buildings 1 2,100,000

Alter to Public Build-

ings 2 102,000

Total 375 34,673,540 407 41,193,066



Health and Environmental Services (cont.) An important component of our activity has also been the development and implementation of new information management systems. This will assist Environmental Health Services to deliver, record and track a number of activities undertaken by relevant officers. It is envisaged that the new information system will be fully operational by early 2009. As in previous years, a free Food Safe workshop was organised by the Shire of Esperance in partnership with the Esperance Volunteer Resource Centre for community groups that intend to run a community food (fundraising event). Environmental Health Services, in association with the Esperance Volunteer Resource Centre, intends to continue to hold similar activities in the future to ensure that community groups can acquire the requisite food safety knowledge and skills needed to conduct food-based fund raising events. With new requirements for Public Swimming Pools in Western Australia, Environmental Health has been ensuring operators are aware of the new regulations and the impact these may have on respective facilities. To date this has involved an inspection of all Public Swimming Pools within the Shire and the facilitation of a Department of Health information session. The Shire of Esperance has continued to provide assistance to the Departments of Health and Environment and Conservation in their activities relating to heavy metal emissions from the Esperance Port in early 2007. In addition Environmental Health Services has developed and implemented a monitoring program to provide information on any lead and nickel contamination of parks and playgrounds within the impact zone, and the efficacy of cleaning activities undertaken by the Shire of Esperance. It is proposed that this program run for a 12-month period, with the intent to develop recommendations for future actions.

The Shire has continued its close association with South Coast Natural Resource Management Inc. in the coordination of tree planting activity at the Shark Lake Industrial Park, and Pink Lake Road Works with the Esperance Bushrangers, Millennium Kids and Esperance Primary School. The beach access infrastructure construction project at Blue Haven involving the Shire of Esperance, the Esperance Senior High School Building and Construction Program and Bushrangers is nearing completion.


Engineering

Services Asset Management

Asset Planning Services

Human Resource Management

Mapping, Survey and Design

Technical and Administration

Support

Executive Manager Engineering Services

Doug Pearson

Engineering Services Team

Debbie Coles

Alison Cull

Peter Cull

Graham Dellaca

John Dinning

Mark Haberecht

Dennis Kelly

David Klingberg

Garry Lamour

Bill Lance

Scott McKenzie

Noelene McNamara

Andrew Murray

Mary Parker

Simon Russell

Georgia Ryan

Craig Shearer

David Spencer

Bruce Warren

Neil Williams

Field Staff Personnel

Road Asset and Expenditure

The effective and efficient management of the Shire's $177,000,000 asset base is critical to the success and economic well-being of the region. As part of Council's ongoing commitment towards maintaining the local road network, extensive funds were spent on maintaining and upgrading road assets in 2007/08 as detailed below.

Roads to Recovery 2007/08 represents the second last year of funding under the Roads to Recovery funding program. The Federal Government have committed to another four years of funding from 2009/10 onwards, but are yet to define the quantum of funds to be received by each Council. Due to the significant size of Council's road network, the Shire of Esperance receives one of the larger allocations of Roads to Recovery funding in Australia. Each year we receive more than $1m. During the 2007/08 financial year, the majority of these funds were spent on those projects detailed below. Grass Patch Road Over $520,000 of Roads to Recovery Funding was spent in 2007/08 to reconstruct a 5km section of this road. Grass Patch Road is defined as a Rural Distributor Road - Category A under the Shires Functional Road Hierarchy and serves as a strategic grain haulage route bringing in grain from the east of Grass Patch. The road was upgraded and widened to a 7.4m seal.

Engineering Services

Merivale Road Roads to Recovery Funding of $126,483 was spent to improve the width and safety of the above road. The road was suffering from pavement failure and was not wide enough for the heavy vehicle traffic that it is required to accommodate. Merivale Road is also a Rural Distributor Road - Category A and is used heavily for grain haulage and access to the Esperance townsite. Parmango Road Roads to Recovery Funding of $172,166 was spent on this road to reseal 8.5km’s over three sections. Parmango Road is a Rural Distributor Road - Category A and is a strategic route for access to the Esperance townsite by tourists travelling from Balladonia, as well as accommodating heavy use by rural based trucking businesses and farmers.

Doug Pearson

Executive Manager Engineering Services

Shire of Esperance Road Statistics

Roads Length (km) Area (m3)

Unformed 505.04 2,882,620

Formed (Track) 189.61 1,502,102

Paved (Gravel/Limestone) 3,003.67 20,387,200

Sealed 819.95 5,170,482

Total Built Roads 4,518.27 29,942,404

Total Number of Roads 697


State Road Funds In addition to the Roads to Recovery Funding, which is from the Federal Government, the Shire also receives funding from the WA Government for roads, usually from the Blackspot and Regional Road Group Funding programs. Blackspot grants are for safety improvement initiatives on local roads and Council has recently focused on utilising these funds for the staggering of uncontrolled 4-way intersections in rural areas, which were identified as a priority in Council's Strategic Plan. Blackspot funding is in the form of a maximum of $2 from the State Government for every dollar committed by the Shire. During 2006/07, the following Blackspot projects were successfully applied for and constructed: Merivale Road: Bituminise and improve the S-bend east of Dunns Rock Road. Dalyup Road/Thomas Road: Intersection stagger. Dalyup Road/Speddingup West Road: Intersection stagger. Rolland Road/Field Road: Intersection stagger. Williams Road: Curve realignment. Wittenoom Road: Curve Realignment. Eleven Mile Beach Road: Car park and curve realignment. The above projects cost $378,000 to complete, with $262,112 being received from the State Government.


Regional Road Group Funding is allocated by the State Government to the nine Regional Road Groups in the State using a weighted formula split between population and road network lengths. The Goldfields-Esperance Regional Road Group received $3.229m in 2007/08 to split between 9 Local Governments. Esperance received an allocation of $1.712m, which allowed the further upgrading of Cascade Road, as well as improvement works on Myrup Road and Shark Lake Road. Works on Fisheries Road and Cape Le Grand Road also received funding approval but were deferred to allow flood reinstatement works to be undertaken.

Council Funds Town Works A number of footpaths and road projects were undertaken within the Towns Works budget during the year. Footpaths were constructed throughout the Nulsen area, and many other smaller projects spread throughout the Esperance townsite. Further upgrading of the paving in the CBD with interlocking pavers was also undertaken. Council also continued the staged upgrading of the Castletown Drainage system. Funds were also spent extending the Twilight Beach Dual Use Path to the Fourth Beach car park. It is intended to complete this DUP to the Twilight Beach car park in the next financial year.


Council Funds (cont.)

Foreshore Renourishment The foreshore renourishment program continues to provide protection to areas of the foreshore that are prone to damage from wave and storm action. Expenditure of $116,938 was spent on foreshore renourishment during the year, with the Department of Planning and Infrastructure contributing $86,935 towards this work. As reported previously, an advisory Committee to Council has been formulated to assess stabilization options and develop a preferred option for adoption by stakeholder organisations. The Department of Planning and Infrastructure are currently finalizing the design of the foreshore stabilization options. Esperance Aerodrome The Airport continued on with no major issues. There were no security incidents or threats received for the year. Council undertook a project to complete a 50mm asphalt overlay on the taxiway and apron in February 2008. This was 50% funded by Council and the other 50% by the Regional Airports Development Scheme. The Shire has also applied for funding from the same scheme to asphalt overlay the runway. This grant application is for 50% and totals $850,000. Passenger numbers at the airport have continued to increase steadily and exceeded 44,000 in 2007/08; an increase of 12.9% over the previous year.

New Landfill Site Due to pressure from the Department of Environment and Conservation and associated environmental concerns, Council is committed to relocate it's Wylie Bay landfill site. Finding a location for a suitable site is proving to be difficult due to potential environmental constraints in many areas of the Shire. The recycling facility and a transfer station for domestic waste would remain at Wylie Bay.


Ideally, Council would like the following conditions to be met: Within a 20-30km radius of the town centre; Within the Coastal sand plain area; Outside of the Lake Warden Wetland catchment area; and Adequate separation from groundwater. A contract has been let to ASK Waste Management to undertake a Future Landfill Review and recommend a course of action. ASK Waste Management have agreed to provide an assessment of the environmental, economic, social and technical issues of the following three options: 1. Establishing a new landfill facility at an

alternative site; 2. Constructing lined cells and effluent collection

systems at the existing Wylie Bay landfill facility, and

3. Diverting the majority of putrescible and other effluent generating wastes from the waste stream for treatment or recovery.

DrumMuster Farmers have an all year inspection service available from Monday to Friday at the Wylie Bay Landfill site. DrumMuster have agreed to the arrangement that the Shire of Esperance bale the drums upon collection and transport them to Perth for sale to the DrumMuster processor in Perth. Steel drums are sold locally to the scrap metal contractor after inspection and baling. Bulk Verge Collection Another bulk verge collection was conducted in May 2008, with the collection boundary being restricted to the town electoral ward boundary. The collection was held over one week, with the scrap metal merchant collecting all metal products, and the Shire cleaning up all other materials. The service was well utilised and was considered to be a success. The vast majority of residents only put out materials that could be taken by either the scrap metal merchant or into the landfill.

Waste Management


Waste Management (cont.)

Commercial Recycling Commercial recycling is continuing with collections each Tuesday and Thursday morning. The main items collected on the commercial run are cardboard and plastic sheeting. There are now over 90 businesses, organisations and schools on the Commercial Recycling Program. Community Recycling Program The overall rate of recycling continues to steadily increase. Changes were recorded in recycling of cardboard (down 35 tonnes), newspaper (down 20 tonnes), mixed paper (down 5 tonnes), and mixed glass (up 30 tonnes). The 2007/08 financial year was the second year we have been recycling an extended range of plastics – recycling plastic containers and bottles numbered 2-6 (previously we only collected number 1’s and milk bottles). A total of 27 tonnes of mixed plastics (2-6) were recycled. Contamination averages around 14%, which is consistent with previous years. However, in an effort to reduce the more offensive contamination, ie, food waste, garden rubbish, nappies and needles, a “3 Strikes and You’re Out” policy has been implemented and widely advertised. Shire staff and recycling truck drivers randomly audit recycling bins, with bins found to contain non-recyclable material considered offensive being stickered and the resident notified. If a bin receives three stickers the recycling service is removed. Thus far, two households have received 3 strikes and had their recycling bins removed. It must be remembered that the recyclable materials are hand sorted by staff at Wylie Bay, and they should not have to deal with rotting fish heads, food waste, used nappies etc. The market price for baled plastic materials and steel has dropped significantly in the past year, with prices for other recyclable products holding steady. We are fortunate that our main supplier is continuing to provide a slightly higher than market price for the plastics. Recycling Tours The Recycling Project Officer continued to


conduct tours of the Wylie Bay MRF, with tours being conducted on average, every two months. Tours are being encouraged through the schools and other organisations. Anecdotal evidence suggests that people recycle better once they have seen first hand what happens to the material at Wylie Bay. Bag Smart Program Following on from the ‘Plastic Bag Free by December 3’ (2006) deadline set by the community, the Bag Smart Program continued to be very successful. The Shire of Esperance won both the State and National award in the inaugural Keep Australia Beautiful Plastic Bag Reduction Awards, in November 2006. Esperance achieved a 68% reduction in the weekly use of plastic bags in 4 ½ years, from over 108,000 per week in January 2003, to 35,000 per week in July 2008. A total of 195 businesses have pledged support for being ‘Bag Smart’ and over 30 volunteers have been involved with the program.

Plant Replacement The following items of major plant were replaced during the 2007/08 financial year: G32 CAT 12H Grader L36 CAT 416c Loader L39 CAT 216 Skid Steer Loader T78 Isuzu Truck T79 Isuzu truck T84 Mitsubishi Prime Mover T85 Mitsubishi 8 Wheel Truck The planned continual replacement of high utilisation plant has ensured low downtime on the construction and maintenance of roads.


Executive Manager Corporate Services

Darren Kennedy

Corporate Services Team

Alison Middleton

Allison Guild

Andrew Fletcher

Andrew McKenzie

Annette Slade

Avnish Shah

Beth O’Callaghan

Cathy Murray

Christina Francis

David Scheer

Eden McGill

Heather O’Brien

Jo Smith

Josephine Roelofs

Kerryl Ross

Marcus Kirby

Mark Caporn

Melissa Ammon

Ron Scantelbury

Russell English

Tori Castledine

Administrative Services

Audit and Grant Management

Communications

Financial Services

Information Technology

Records Management

Statutory Reporting

Corporate

Services

Corporate Services

Corporate Services is responsible for financial management, administration, rating, information technology, police licensing, records management, Councillor services, governance, and electoral matters. At the time of compiling this annual report there is large uncertainty surrounding global financial markets and the resultant impact on the economy. We will continue to monitor these events closely and respond where necessary. On a positive note, the Shire of Esperance has no investment exposure to the sub-prime mortgage market through products such as Collateralised Debt Obligations (CDO’S).

Information Technology A new wide format copier was installed to improve document management of large engineering and building plans. The copier enables plans as large as A0 to be scanned and stored electronically. This will also enable the Shire’s 13,000 building licenses to be progressively scanned, making them available electronically and complementing the Shire’s disaster recovery plan. Additional software was implemented for Financial Services to improve bond management processes. The use of the software has made significant improvements to recordkeeping, reconciliation and traceability. The Shire’s wireless network infrastructure was upgraded to provide the Bay of Isles Leisure Centre greater bandwidth, thus providing staff at the centre greater access the Shire’s centralised corporate software and information systems. A new Harvest Ban messaging system was developed in-house to be able to notify Bushfire Brigade Captains and Senior Fire Control Officers via mobile phone text messages. Notifications can be sent reporting that a ban has been put in place or lifted, or of forecast extreme weather conditions.

Bushfire Control and Emergency Services The 2007/08 bushfire season was comparatively quiet compared to the past few years, however there were still a number of fire events throughout the Shire to keep the pressure on our volunteer Brigades and resources. As always the volunteers of the Shire of Esperance Bush Fire Brigades are to be commended for their commitment and dedication. The Shire of Esperance extends its thanks to all Brigade members for their continuing service to the community. The replacement and upgrading of Bush Fire plant and equipment is allocated by FESA and funded via the emergency services levy paid by all property owners. In 2005 our Shire, together with FESA via the Bushfire Advisory Committee, completed a Risk to Resources assessment for all 17 Brigades to determine existing and future needs. Based on this information, a Service Level Agreement has now been finalised between FESA and the Shire, which will see our fire fighting fleet meeting the needs of the community well into the future. As per this new Agreement the 2007/08 financial year saw replacement vehicles for Mount Merivale and Six Mile Hill Brigades, with new vehicles for the Dalyup and Coomalbidgup Brigades scheduled for the 2008/09 year.

Darren Kennedy

Executive Manager Corporate Services


Corporate Services

Bushfire Control (cont.)

In 2006, the State Government announced $20 million to fund a new West Australian Emergency Radio Network (WAERN) that will see the development of dual band radios to cover all emergency services. The Shire of Esperance was to be the first area in the State to receive this new system. The WAERN has now been installed across the Shire at various base sites, with an additional two new sites to improve coverage. Some 110 radios have been installed and the 2007/08 bush fire season saw the new system operational. WAERN has improved radio communications across the Shire eradicating “communication blackspots”. With ongoing training in the use of the new radios, they will provide a much safer working environment for fire fighters into the future. The Local Emergency Management Committee (LEMC) has had another successful year. Meetings have been well attended by the participating agencies and outcomes have been productive to the overall emergency management of the Esperance community. In 2005/06, grant money was received via the AWARE grant scheme, enabling the Shire to employ a consultant to complete three Local Emergency Management Plans in risk identification, implementation and recovery p lanning, pursuant to requirements outlined within the new Emergency Management Act 2005. These plans were finalised in the months leading up to the January 2007 “Perfect Storm”, where they were used during the event and through the recovery phase. Much was learned in emergency management during the aftermath of the storm, with one of the biggest lessons coming from the benefits of having a preplan from which to work. Looking forward, the LEMC has plans in the coming months to utilise some funding obtained from BHP Billiton to purchase some additional emergency response plant and equipment as well as resurrecting the Emergency Services Fun Day for 2009.

Native Title and Aboriginal Heritage The Shire continues to monitor the various native title claims within the Shire and across the region. Progress is very slow with matters that are complex, requiring considerable research prior to determination. This work will continue together with the watching brief. The Mount Ridley Association Inc. has now been constituted as a joint initiative between the Esperance Nuyngar Aboriginal Corporation and the Shire in order to obtain control and management of the land at Mount Ridley Reserve 13486.

Leases and Legal Documents The management and review of leases and legal documents is an ongoing process. Increasing electronic record keeping will improve the Shire’s ability to search for and retrieve information held by the Shire.

Statutory Reports Records Management The Shire’s records are managed according to the Shire’s Record Keeping Plan. The Plan is a statutory obligation under the State Records Act 2000. The Plan details the control, retention and disposal of the Shire’s public records. The Plan was endorsed by the State Records Commission for a five year term in 2004. It is to be reviewed and re-submitted for approval in March 2009.


Corporate Services

Statutory Reports (cont.) Records Management (cont.) Under the Record Keeping Plan, the Shire maintains record keeping training and induction programs to ensure that Shire employee’s are informed of their responsibilities in regard to record keeping. This program is subject to periodic review to improve its effectiveness and efficiency. During 2007/08 specific developments in the Shire’s record keeping have been: The introduction of registering

outgoing mail created by Shire Officers to the Shire electronic record management system (TRIM). This allows incoming, outgoing and future internal records to be registered and located on TRIM; and

The commencement of the scanning of all current development applications e.g. planning applications and building licence applications. Eventually all past building licences will also be scanned and placed in the TRIM system.

National Competition Policy The Competition Principles Agreement is an Inter-government Agreement between the Commonwealth and State/Territory Governments that sets out how government wi l l apply National Competition Policy principles to public sector organisations within their jurisdiction. The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition Principles Agreement require local government to report annually as to the implementation, application and effects of the Competition Policy.

The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting. These are: 1. Competitive Neutrality; 2. Structural Review of Public Monopolies; and 3. Legislative Review. In accordance with the requirements of the National Competition Policy, the Shire of Esperance makes the following disclosures for 2007/08. Competitive Neutrality The objective of competitive neutrality is the elimination of resource allocation distortions arising out of local government ownership of significant business activities. The Shire of Esperance has previously assessed its operations and considers that it has one business activity that would be classed as significant under the current guidelines. Also the Shire of Esperance does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise. The number of activities to which

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

The number of activities to which

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

Under the implementation timetable required by the National Competition Policy Statement, the Shire of Esperance was to undertake a cost benefit analysis to determine which significant business activities would be subject to competitive neutrality principles by 1 June 1997. This analysis was undertaken by an independent party and summarised in a report dated December 1997. During the reporting period the Shire of Esperance did not become aware of any allegations of non-compliance with the competitive neutrality principles made by a private entity against the Shire. 2007/08 Annual Report - Page 38

Corporate Services

Statutory Reports (cont.) Structural Review of Public Monopolies In relation to Structural review of public monopolies, the Shire of Esperance discloses the following: Structural reform principles have

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

Structural reform principles have

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

As no structural reform has been applied to any activities, the review requirements of principal SR.3 of Clause 7 of the Competition Policy Statement have not been undertaken. Legislative Review Parties to the National Competition Policy package agreed that legislation should not restrict competition unless: The benefits of the restriction to the

community as a whole outweigh the costs; and

The objectives of the legislation can

only be achieved by restricting competition.

Accordingly, the Shire of Esperance is required to implement a systematic review of all of its existing legislation to determine whether there are any direct or indirect effects on competition.

In relation to a Legislative Review the Shire of Esperance discloses that: As at the reporting date the number of

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

As at the reporting date the number of

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

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

Ground recreation area; Development of the Esperance Townsite

Foreshore; Development of the Flinders Residential

subdivision; Development of the Shark Lake

Industrial Park; and Development of the Port Access

Corridor. A copy of the Shire’s Plan for the Future is available from the Administration Office or from the website www.esperance.wa.gov.au.


http://www.esperance.wa.gov.au/�

TABLE OF CONTENTSPage

Statement by Chief Executive Officer i

Independent Audit Report ii

Income Statement (by Nature or Type) 1Income Statement (by Program) 2Balance Sheet 3Statement of Changes in Equity 4Cash Flow Statement 5Rate Setting Statement 6

Notes to and Forming Part of the Financial Report NoteSignificant Accounting Policies 1 7Revenues and Expenses 2 16Cash and Cash Equivalents 3 20Trade and Other Receivables 4 21Inventories 5 21Property, Plant and Equipment 6 22Infrastructure 7 24Trade and Other Payables 8 26Long Term Borrowings 9 26Provisions 10 26Reserves - Asset Revaluation 11 26Reserves - Cash Backed 12 27Notes to the Cash Flow Statement 13 34Capital and Leasing Commitments 14 35Contingent Liabilities 15 35Joint Venture and Major Land Transaction 16 36Assets by Function and Activity 17 39Financial Ratios 18 39Trust Funds 19 40Disposal of Assets 20 40Information on Borrowings 21 41Rating Information 22 43Discounts, Incentives, Concessions and Write-offs 23 44Interest Charges and Instalments 24 45Fees and Charges 25 45Grant Revenue 26 45Employee Numbers 27 46Councillors' Remuneration 28 46Employees Remuneration 29 46Major Land Transactions 30 47Major Trading Undertakings 31 48Conditions over Contributions 32 50Financial Risk Management 33 52Comparative Figures 34 57

SHIRE OF ESPERANCEWindich Street, Esperance Western Australia, 6450

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

Annual Financial ReportFor the year ending 30th June 2008

Table of Contents

2007-08

Shire of Esperance


Statement byChief Executive Officer

2007-08

i Shire of Esperance


Audit Report

2007-08

ii Shire of Esperance


Audit Report

2007-08



Audit Report

2007-08


2008 2008 2007Actual Budget Actual

NOTE $ $ $REVENUES FROM ORDINARY ACTIVITIES

EXCLUDING PROFIT ON ASSET DISPOSAL

AND GRANTS & CONTRIBUTIONS FOR ASSETS

Rates 22 8,767,179 8,674,973 8,116,582 Grants and Subsidies 26(a) 5,923,332 7,905,408 5,266,892 Contributions, Reimbursements and Donations 1,320,411 841,261 1,720,703 Service Charges - - - Fees and Charges 25 5,424,581 4,727,584 4,999,717 Interest Earnings 2(a) 822,335 596,632 603,425 Other Revenue - - -

22,257,838 22,745,858 20,707,319

EXPENSES FROM ORDINARY ACTIVITIES

EXCLUDING LOSS ON ASSET DISPOSAL

Employee Costs (8,153,714) (9,666,098) (8,777,721) Materials and Contracts (6,312,222) (7,636,120) (5,158,457) Utilities (444,647) (445,934) (443,972) Depreciation 2(a) (7,950,712) (7,559,024) (7,776,986) Interest Expenses 21(a) (155,643) (268,308) (96,257) Insurance (356,916) (345,673) (336,390) Other Expenses (557,397) (442,762) (564,333)

(23,931,251) (26,363,919) (23,154,116)

Sub-total (1,673,413) (3,618,061) (2,446,797)

Grants and Subsidies - Non-operating 26(a) 3,640,313 4,710,862 3,230,109 Contributions, Reimbursements and Donations - Non-operating 390,453 - 1,251,963 Profit on Asset Disposals 20 521,441 1,556,739 61,424 Loss on Asset Disposals 20 (214,101) (107,922) (115,701)

4,338,106 6,159,679 4,427,795

NET RESULT 2,664,693 2,541,618 1,980,998

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


Income Statementby Nature or Type

2007-08

Page 1 Shire of Esperance


NOTE $ $ $REVENUES FROM ORDINARY ACTIVITIES 2(a)Governance 159,584 80,080 108,566 General Purpose Funding 13,093,515 12,761,356 12,221,261 Law, Order, Public Safety 762,974 2,658,926 686,829 Health 203,772 186,980 262,378 Education and Welfare 2,119,773 2,312,522 1,660,935 Community Amenities 1,900,007 1,735,325 1,688,168 Recreation and Culture 1,621,420 1,484,423 1,328,903 Transport 4,877,557 5,253,968 4,800,907 Economic Services 1,091,285 442,020 503,702 Other Property and Services 980,158 2,097,859 1,989,166

26,810,045 29,013,459 25,250,815

EXPENSES FROM ORDINARY ACTIVITIES

EXCLUDING BORROWING COSTS EXPENSE 2(a)Governance (861,761) (920,801) (802,072) General Purpose Funding (172,360) (176,457) (171,816) Law, Order, Public Safety (1,250,024) (3,506,529) (1,137,630) Health (347,754) (384,908) (356,604) Education and Welfare (2,042,746) (2,012,508) (1,706,246) Community Amenities (3,045,350) (3,212,664) (2,859,238) Recreation & Culture (4,687,709) (4,672,098) (4,236,316) Transport (9,770,630) (9,679,283) (9,433,599) Economic Services (1,208,910) (737,602) (616,182) Other Property and Services (602,465) (900,683) (1,853,857)

(23,989,709) (26,203,533) (23,173,560)

BORROWING COSTS EXPENSE 2(a)Education and Welfare - (6,000) - Recreation & Culture (43,827) (44,670) (32,969) Other Property & Services (111,816) (217,638) (63,288)

(155,643) (268,308) (96,257)

NET RESULT 2,664,693 2,541,618 1,980,998



Income Statementby Program

2007-08


2008 2007Actual Actual

NOTE $ $CURRENT ASSETSCash and Cash Equivalents 3 6,746,191 7,281,850Trade and Other Receivables 4(a) 2,157,225 3,103,941Inventories 5(a) 1,400,339 1,179,958TOTAL CURRENT ASSETS 10,303,755 11,565,749

NON-CURRENT ASSETSOther Receivables 4(b) 564,812 644,066Inventories 5(b) 922,584 1,264,516Property, Plant and Equipment 6 34,597,290 33,634,830Infrastructure 7 191,497,407 189,383,540TOTAL NON-CURRENT ASSETS 227,582,093 224,926,952

TOTAL ASSETS 237,885,848 236,492,701

CURRENT LIABILITIESTrade and Other Payables 8 1,595,451 1,126,295Current Portion of Long Term Borrowings 9(a) 604,786 2,364,195Provisions 10(a) 1,245,832 696,249TOTAL CURRENT LIABILITIES 3,446,069 4,186,739

NON-CURRENT LIABILITIESLong Term Borrowings 9(b) 535,761 615,548Provisions 10(b) 135,722 586,811TOTAL NON-CURRENT LIABILITIES 671,483 1,202,359

TOTAL LIABILITIES 4,117,552 5,389,098

NET ASSETS 233,768,296 231,103,603

EQUITYRetained Surplus 123,001,770 119,989,498Reserves - Asset Revaluation 11 104,385,150 104,385,150Reserves - Cash Backed 12 6,381,376 6,728,955TOTAL EQUITY 233,768,296 231,103,603



Balance Sheet

2007-08


NOTE 2008 2007Actual Actual

$ $RETAINED PROFITS (SURPLUS)

Balance as at 1 July 2007 119,989,498 119,684,020

Change in Net Assets Resulting from Operations 2,664,693 1,980,998

Transfer from/(to) Reserves 347,579 (1,675,520) Balance as at 30 June 2008 123,001,770 119,989,498

RESERVES - CASH BACKED


Amount Transferred (to)/fromRetained Surplus (347,579) 1,675,520 Balance as at 30 June 2008 12 6,381,376 6,728,955

RESERVES - ASSET REVALUATION


Revaluation Increment - -

Revaluation Decrement - - Balance as at 30 June 2008 11 104,385,150 104,385,150

TOTAL EQUITY 233,768,296 231,103,603



Statement of Changes in Equity

2007-08


NOTE 2008 2008 2007Actual Budget Actual

Cash Flows From Operating Activities $ $ $ReceiptsRates 8,785,192 8,694,973 8,162,271 Grants and Subsidies - operating 5,860,406 8,805,408 5,260,882 Contributions, Reimbursements & Donations 1,677,677 860,183 1,024,702 Fees and Charges 5,987,115 4,807,584 4,843,263 Interest Earnings 828,539 596,632 603,361 Goods and Services Tax 1,707,249 1,073,023 1,495,040 Other - - -

24,846,178 24,837,803 21,389,519 PaymentsEmployee Costs (Operating only) (8,031,518) (9,551,332) (8,898,001) Materials and Contracts (5,771,106) (7,615,824) (5,045,115) Utilities (gas, electricity, water, etc) (463,802) (445,934) (444,929) Insurance (356,916) (345,673) (336,390) Interest (221,493) (302,308) (31,717) Goods and Services Tax (1,757,221) (1,073,023) (1,525,459) Other (557,397) (442,762) (568,465)

(17,159,453) (19,776,856) (16,850,076) Net Cash Provided By (Used In)Operating Activities 13(b) 7,686,725 5,060,947 4,539,443

Cash Flows from Investing ActivitiesPayments for Development of Land Held for Re-sale (633,395) (8,763,407) (1,009,086) Payments for Purchase of Property, Plant & Equipment (3,878,319) (5,050,020) (2,738,440) Payments for Construction of Infrastructure (8,066,470) (8,755,587) (6,186,340) Advances to Community Groups - - - Proceeds from Sale of Land Held for Re-sale 1,054,910 - - Grants/Contributions for the Development of Assets 4,145,314 4,710,862 3,727,526 Proceeds from Sale of Plant & Equipment 914,465 4,897,370 759,429 Net Cash Provided By (Used In)Investing Activities (6,463,495) (12,960,782) (5,446,911)

Cash Flows from Financing ActivitiesAdvances to Community Groups - (500,000) - Repayment of Debentures (2,364,195) (2,705,416) (79,504) Proceeds from Self Supporting Loans 80,306 85,482 (209,495) Proceeds from New Borrowings 525,000 8,840,443 2,574,466 Net Cash Provided By (Used In)Financing Activities (1,758,889) 5,720,509 2,285,467

Net Increase (Decrease) in Cash Held (535,659) (2,179,326) 1,377,999 Cash at Beginning of Year 7,281,850 7,281,850 5,903,851 Cash and Cash Equivalents at End of Year 13(a) 6,746,191 5,102,524 7,281,850



Cashflow Statement

2007-08


NOTE 2008 2008 2007Actual Budget Actual

REVENUES $ $ $Governance 159,584 82,955 108,566 General Purpose Funding (Excl Rates) 4,326,335 4,086,383 4,104,679 Law, Order, Public Safety 762,974 2,658,926 686,829 Health 203,772 186,980 262,378 Education & Welfare 2,119,773 2,312,522 1,660,935 Community Amenities 1,900,007 1,735,808 1,688,168 Recreation and Culture 1,621,420 1,484,423 1,328,903 Transport 4,877,557 5,226,466 4,800,907 Economic Services 1,091,285 442,020 503,702 Other Property and Services 980,158 2,122,003 1,989,166

18,042,865 20,338,486 17,134,233 EXPENSESGovernance (861,761) (923,676) (802,072) General Purpose Funding (172,360) (176,457) (171,816) Law, Order, Public Safety (1,250,024) (3,506,529) (1,137,630) Health (347,754) (384,908) (356,604) Education & Welfare (2,042,746) (2,018,508) (1,706,246) Community Amenities (3,045,350) (3,213,146) (2,859,238) Recreation & Culture (4,731,536) (4,716,768) (4,269,285) Transport (9,770,630) (9,626,814) (9,433,599) Economic Services (1,208,910) (737,602) (616,182) Other Property and Services (714,281) (1,167,433) (1,917,145)

(24,145,352) (26,471,841) (23,269,817) Adjustments for Cash Budget Requirements:

Non-Cash Expenditure and Income

(Profit)/Loss on Asset Disposals 20 (307,340) (1,448,817) 54,277 Movement in Provisions and Accruals 164,470 153,090 (203,769) Movement in Deferred Pensioner Rates (non-current) (533) - (5,562) Depreciation on Assets 2(a) 7,950,712 7,559,024 7,776,986 Capital Expenditure and Income

Development of Land Held for Resale (633,395) (8,763,407) (1,009,086) Purchase Land and Buildings (1,156,456) (2,392,450) (454,674) Construct Infrastructure Assets - Roads (6,710,252) (7,434,285) (5,333,707) Construct Infrastructure Assets - Other (1,544,829) (1,321,302) (1,058,144) Purchase Vehicles, Plant and Machinery (2,461,161) (2,416,222) (2,015,837) Purchase Furniture and Equipment (72,091) (241,348) (62,418) Proceeds from Disposal of Assets 20 1,969,375 4,897,370 759,429 Repayment of Debentures 21(a) (2,364,195) (2,705,416) (79,504) Proceeds from New Debentures 21(b) 525,000 8,840,443 2,574,466 Advances to Community Groups - (500,000) - Self-Supporting Loan Principal Income 80,306 85,482 (209,495) Transfers to Reserves (Restricted Assets) 12 (1,837,549) (1,339,452) (3,376,061) Transfers from Reserves (Restricted Assets) 12 2,185,128 3,215,914 1,700,541

Add Actual Surplus/(Deficit) July 1 B/Fwd 2,024,015 1,192,108 985,575 Less Actual Surplus/(Deficit) June 30 C/Fwd 475,897 (77,650) 2,024,015

Amount Required to be Raised from Rates 22 (8,767,179) (8,674,973) (8,116,582)



Rate Setting Statement

2007-08


1. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies which have been adopted in the preparation of this financialreport are:

(a) Basis of AccountingThe financial report is a general purpose financial report which has been prepared in accordancewith applicable 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 report has also been prepared on the accrual basis under the convention of historical cost accounting as modified by the accounting treatment relating to the revaluation of financial assets and liabilities at fair value through profit and loss and certain classes of non-current assets.

Critical Accounting Estimates

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

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

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

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

(d) Cash and Cash EquivalentsCash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-termdeposits with an original maturity of three months or less that are readily convertible to known amountsof cash and which are subject to an insignificant risk of changes in value.

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cashequivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included asshort term borrowings in current liabilities on the balance sheet.

(e) Trade and Other ReceivablesTrade receivables, which generally have 30 - 90 day terms, are recognised initially at fair value andsubsequently measured at amortised cost using the effective interest method, less an allowance forany uncollectable amounts.

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


Notes to and forming part of theFinancial Report

2007-08

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

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


1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(f) Inventories

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

Inventories held from trading are classified as current even if not expected to be realised in the next12 months.

Land Held for ResaleLand purchased for development and/or resale is valued at the lower of cost and net realisable value.Cost includes the cost of acquisition, development and interest incurred on the financing of that landduring its development. Interest and holding charges incurred after development is complete are recognised as expenses.

Revenue arising from the sale of property is recognised in the operating statement as at the time ofsigning a binding contract of sale.

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

(g) Fixed Assets

Initial RecognitionAll assets are initially recognised at cost. Cost is determined as the fair value of the assets given asconsideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominalconsideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Municipality includes the cost of all materials used in construction, direct labour onthe project and an appropriate proportion of variable and fixed overhead.

RevaluationCertain asset classes may be revalued on a regular basis such that the carrying values are not materially different from fair value. For infrastructure and other asset classes where no activemarket exists, fair value is determined to be current replacement cost of an asset less, whereapplicable, accumulated depreciation calculated on the basis of such cost to reflect the alreadyconsumed or expired future economic benefits of the asset.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less anysubsequent accumulated depreciation and accumulated impairment losses, are to be revalued withsufficient regularity to ensure the carrying amount does not differ materially from that determinedusing fair value at reporting date.

Land Under RoadsLand under roads is excluded from infrastructure in accordance with the transitional arrangements availableunder AASB 1045 and in accordance with legislative requirements.

OtherAs of 1 July 2004, Council elected to revert to the cost basis for measuring all infrastructure road assetsthat were being carried at a revalued amount at the immediately preceding reporting date being30 June 2004.

This was achieved by deeming the carrying amount of the non current assets comprising the particularclass to be their cost and complied with requirements on application of AASB 1 "First Time Adoption ofAustralian Equivalents to International Financial Reporting Standards".



2007-08



(h) Depreciation of Non-Current AssetsAll non-current assets having a limited useful life are systematically depreciated over their usefullives in a manner which reflects the consumption of the future economic benefits embodied inthose assets.

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

Buildings 20 to 50 yearsFurniture and Equipment 5 to 20 yearsMotor Vehicles 3 yearsRoadmaking Plant 5 to 10 yearsOther Plant & Equipment 3 to 15 yearsInfrastructure Roads and Streets - Construction Road Base 50 years Roads and Streets - Bituminous Seal 25 years Footpaths - slab 10 to 30 years Parking Facilities 15 to 16 years Water supply piping & drainage systems 40 years Parks and Gardens 20 years Airport 35 to 36 years

(i) Investments and Other Financial Assets



2007-08

ClassificationCouncil 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 investmentsHeld-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 assetsAvailable-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.



(i) Investments and Other Financial Assets (Continued)

(j) Estimation of Fair Value

Subsequent measurementLoans 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.

ImpairmentCouncil assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments classified as available-for-sale are not reversed through the income statement.

Recognition and derecognitionRegular purchases and sales of financial assets are recognised on trade-date – the date on which Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the income statement. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Council has transferred substantially all the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in the income statement as gains and losses from investment securities.



2007-08

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments.



(k) ImpairmentIn accordance with Australian Accounting Standards the Council's assets, other than inventories,are assessed at each reporting date to determine whether there is any indication they may be impaired.

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-generatingunit 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 useis represented by the depreciated replacement cost off the asset.

(l) Trade and Other PayablesTrade payables and other payables are carried at amortised cost. They represent liabilities for goodsand services provided to the Municipality prior to the end of the financial year that are unpaid and arisewhen the Municipality becomes obliged to make future payments in respect of the purchase of thesegoods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

(m) Employee BenefitsThe provisions for employee benefits relates to amounts expected to be paid for long serviceleave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits)The provision for employees’ benefits to wages, salaries, annual leave and long service leaveexpected to be settled within 12 months represents the amount the municipality has a presentobligation to pay resulting from employees services provided to balance date. The provision hasbeen calculated at nominal amounts based on remuneration rates the Council expects to payand includes related on-costs.

(ii) Long Service Leave (Long-term Benefits)

(n) Interest-bearing Loans and BorrowingsAll 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 amortisedcost using the effective interest method. Fees paid on the establishment of loan facilities that are yieldrelated are included as part of the carrying amount of the loans and borrowings.

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

Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset. Where this is the case , they are capitalised as part of the cost of the particular asset.

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.



2007-08



(o) Provisions

(p) LeasesLeases of fixed assets, where substantially all the risks and benefits incidental to the ownershipof the asset, but not legal ownership, are transferred to the Shire, are classified as financeleases. Finance leases are capitalised recording an asset and a liability equal to the presentvalue of the minimum lease payments, including any guaranteed residual value. Leased assetsare amortised over their estimated useful lives. Lease payments are allocated between thereduction of the lease liability and the lease interest expense for the period.

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

(q) Joint VentureThe municipality's interest in a joint venture has been recognised in the financial statements by includingits share of any assets, liabilities, revenues and expenses of the joint venture within the relevant itemsreported in the statement of financial position and operating statement. Information about the joint ventureis set out in Note 16.

(r) Rates, Grants, Donations and Other ContributionsRates, grants, donations and other contributions are recognised as revenues when the localgovernment obtains control over the assets comprising the contributions. Control over assetsacquired from rates is obtained at the commencement of the rating period or, where earlier, uponreceipt of the rates.

Where contributions recognised as revenues during the reporting period were obtained on thecondition that they be expended in a particular manner or used over a particular period, and thoseconditions were undischarged as at the reporting date, the nature of and amounts pertaining tothose undischarged conditions have been transferred to the Unspent Grants and Contributions Reserve.Details of those undischarged conditions are disclosed in Note 32 which also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operations for the current reporting period.

(s) SuperannuationThe Shire of Esperance contributes to the Local Government Superannuation Scheme and theOccupational Superannuation Fund. Both funds are defined contribution schemes.

(t) Rounding Off FiguresAll figures shown in this annual financial report, other than a rate in the dollar, are rounded to thenearest dollar.

(u) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changes in presentationfor the current financial year.

(v) Current and Non-Current Classification



2007-08

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.

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.



(w) New Accounting Standards and Interpretations

Title and Topic Issued Applicable (¹) Impact

(i) February 2007 1 January 2008

(ii) February 2007 1 January 2009

(iii) June 2007 1 January 2009

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Council for the annual reporting period ending 30 June 2008.

Council’s assessment of these new standards and interpretations is set out below:

AASB-I 12 Service Concession Arrangements, AASB 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation 12, revised UIG 4 Determining whether an Arrangement contains a Lease and revised UIG 129 Service Concession Arrangements: Disclosures

AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8

Revised AASB 123 Borrowing Costs and AASB 2007-6 Amendments to Australian Accounting Standards arising form AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]

Nil – Council is not party to any Service Concession Arrangements.

Nil – The Standard is not applicable to not-for-profit entities.

Nil – The revised Standard has removed the option to expense all borrowing costs and, when adopted, will require the capitalisation of all borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. There will be no impact on the financial report of the Council as the council already capitalises borrowing costs relating to qualifying assets.



2007-08



(w) New Accounting Standards and Interpretations (Continued)


(iv) AASB-I 13 Customer Loyalty August 2007 1 July 2008 Nil - Council has no Customer Loyalty Programmes.Programmes

(v) August 2007 1 January 2008

(vi) September 2007 1 January 2009and

December 2007

(vii) October 2007 1 July 2008 (²)

AASB-I 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 and AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101

AASB 1049 Whole of Government and General Government Sector Financial Reporting

Nil – The Interpretation provides guidance on the maximum amount that may be recognised as an asset in defined benefit plans. Council does not currently contribute to any defined benefit plans. Consequently, there is not expected to be any impact on the financial statements.

Nil – The revised Standard requires the presentation of a Statement of comprehensive income and makes changes to the Statement of changes in equity, but will not affect any of the amounts recognised in the financial statements. If Council has made a prior period adjustment or has reclassified items in the financial statements, it is likely it will need to disclose a third balance sheet (Statement of financial position), being as at the beginning of the comparative period.

Nil – The Standard is not applicable to Local Governments.



2007-08



(w) New Accounting Standards and Interpretations (Continued)


(viii) December 2007 1 July 2008 (²)

Notes:(¹)- Applicable to reporting periods commencing on or after the given date.(²) - Applicable to not-for-profit and/or public sector entities only.

AASB 1050 Administered Items: AASB 1051 Land Under Roads, AASB 1052 Disaggregated Disclosures, revised AASB 1004 Contributions, AASB 2007-9 Amendments to Australian Accounting Standards arising from the review of AAS 27, AAS 29 and AAS 31 and revised interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities

• AASB 1050 is only applicable to Government departments and will have no impact on Council.

• AASB 1051 will allow Council to recognise or not recognise land under roads acquired before 30 June 2008. Land under roads acquired after 30 June 2008 must be recognised.

• AASB 1052 requires disclosure of financial information by function or activity. Council already provides this information so there will be no additional impact on the financial statements.

• This Standard will have a significant impact on the Council’s financial statements.

• AASB 1004 requires contributions made to Council to be recognised at fair value when they are controlled and to be appropriately disclosed. Council already accounts for contributions in this manner so there will be no additional impact on the financial statements.



2007-08


2. REVENUES AND EXPENSES

(a) Result from Ordinary Activities

The result from ordinary activities includes:2008 2007

(i) Charging as Expenses: Actual Actual$ $

Auditors Remuneration- Audit 14,200 14,800 - Other Services 14,960 4,830

Bad and Doubtful DebtsRates 13,076 6,432 General Debtors 973 391

DepreciationBuildings 567,554 563,899 Furniture and Equipment 76,328 126,547 Plant and Equipment 1,192,511 1,299,152 Construction other than Building 161,716 141,212 Roads 5,132,865 4,861,414 Lighting 12,779 11,530 Footpaths 160,416 144,480 Parks and Reserves 312,954 312,950 Drainage 74,970 68,033 Pipes 112,653 112,653 Other 49,482 44,615 Tourist Signs 1,441 1,441 Airport 67,010 61,027 Parking 28,033 28,033

7,950,712 7,776,986

Interest ExpenseDebentures (refer note 21 (a)) 155,643 96,257

Rental Charges- Operating Leases 191,546 139,246

(ii) Crediting as Revenues: 2008 2008 2007Actual Budget Actual

$ $ $Interest EarningsInvestments- Reserve Funds 415,852 306,632 277,579 - Other Funds 350,976 233,000 273,591 Other Interest Revenue (refer note 24) 55,507 57,000 52,255

822,335 596,632 603,425



2007-08


2. REVENUES AND EXPENSES (Continued)

(b) Statement of Objectives, Reporting Programs and Nature-Type Classifications

In order to discharge its responsibilities to the community, the Shire has developed a set ofoperational and financial objectives. These objectives have been established both on an overallbasis and for each of its broad activities/programs.

COMMUNITY VISION : We make It happen!The spirit of Esperance is unique, we take pride in being a creative, caring and supportive community.We live in a diverse and dynamic region with outstanding opportunities for all. As custodians, we arecommitted to protect our spectacular natural environment. Esperance has a sense of community ownership with commitment to determine is own direction.

REPORTING PROGRAM DESCRIPTIONSCouncil operations as disclosed encompass the following service orientated activities/programs:

GovernanceObjective : To provide a decision making process for the efficient allocation of scarce resourcesActivities : Includes the activities of members of council (Councillors) and the administrative supportavailable to the Council for the provision of governance of the district. Other costs relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council services.

General Purpose FundingObjective : To collect revenue to allow for the provision of services.Activities : Rates, general purpose government grants, and interest revenue.

Law, Order & Public SafetyObjective: To provide services to help ensure a safer and environmentally conscious community.Activities : Supervision and enforcement of various local laws relating to fire prevention, animal control and protection of the environment other aspects of public safety including emergency services.

HealthObjective: To provide an operational framework for good community healthActivities : Inspection of food outlets and their control as well as provision of meat inspection services, noise control, and waste disposal compliance.

Education & WelfareObjective: To provide services to disadvantaged persons, the elderly, children and youthActivities : Maintenance of child minding centre, playgroup centre, senior citizens centre and aged care centre. Provision and maintenance of home & community care programs and youth support services.

HousingObjective: To provide and maintain elderly residents housingActivities: Provision and maintenance of elderly residents housing

Community AmenitiesObjective : To provide services required by the communityActivities : Rubbish collection services, operation of rubbish disposal sites, litter control, construction and maintenance of urban storm water drains, protection of the environment and administration of townplanning schemes, cemetery and public conveniences.



2007-08



(b) Statement of Objectives, Reporting Programs and Nature-Type Classifications (continued)

Recreation & CultureObjective : To establish and effectively manage infrastructure and resources which will help the socialwell being of the communityActivities : Maintenance of public halls, civic centre, aquatic centre, beaches, recreation centres and various sporting facilities. Provision and maintenance of parks, gardens and playgrounds. Operation of library, museum and other cultural facilities.

TransportObjective : To provide safe, effective and efficient transport services to the community.Activities : Construction and maintenance of roads, streets, footpaths, depots, cycleways, parking facilities and traffic control. Cleaning of streets and maintenance of street trees, street lighting etc. Provision and operation of airport.

Economic ServicesObjective: To help promote the shire and it's economic wellbeing.Activities : Tourism and area promotion including the maintenance and operation of a caravan park. Provision of rural services including weed control, vermin control and standpipes. Building control.

Other Property & ServicesObjective: To monitor and control Council's overheads operating accounts.Activities : Private works operation, plant repair and operation costs and engineering operation costs.

NATURE-TYPE CLASSIFICATIONS

The Shire of Esperance is required by the Australian Accounting Standards to disclose revenue and expenditure according to it's nature/type classification. The following nature and type descript-ions are also required by State Government regulation.

Revenue

RatesAll rates levied under the Local Government Act 1995. Includes general, differential, specific arearates, minimum rates, interim rates, back rates, ex-gratia rates, less discounts offered.Excludes administration fees, interest on instalments, interest on arrears, service charges and sewerage rates.

Grants and SubsidiesGrants and subsidies received from government and non-government entities. Includes operating grants for the purchase or the development of assets.

Contributions, reimbursements and donationsRevenues received for contribution to works and services such as crossings, footpaths, road re-instatements etc., contributions by community groups and other authorities to operating costsof shared facilities such as libraries and sports venues and reimbursement of expenses incurredin operating community facilities.

Profit on asset disposalProfit on the disposal of assets including gains on the disposal of long term investments. Losses are disclosed under the expenditure classifications.



2007-08



(b) Statement of Objectives, Reporting Programs and Nature-Type Classifications (continued)

Service chargesService charges imposed under Division 6 of Part 6 of the Local Government Act 1995. Regulation54 of the Local Government (Financial Management) Regulations identifies the charges, whichcan be raised. These are television and radio broadcasting, volunteer bush fire brigades, under-ground electricity and neighbourhood surveillance services. Excludes rubbish removal charges.

Fees and chargesRevenue (other than service charges) from the use of facilities and charges made for local govern-ment services, sewerage rates, rentals, hire charges, fee for service, photocopying charges, licences, sale of goods or information, fines, penalties and administration fees.

Interest EarningsInterest and other items of a similar nature received from bank and investment accounts, intereston rate instalments, interest on rate arrears and interest on debtors.

Other revenue/incomeOther revenue, which can not be classified under the above headings, includes dividends, dis-counts, rebates etc.

Expenditure

Employee costsAll costs associated with the employment of persons such as salaries, wages, allowances, benefitssuch as vehicle and housing, superannuation, employment expenses, removal expenses, relocationexpenses, worker's compensation insurance, training costs, conferences, safety expenses, medical examinations, fringe benefits tax etc.

Material and contractsAll expenditure on materials, supplies and contracts not classified under other headings. Theseinclude supply of goods and materials, legal expenses, consultancy, maintenance agreements,communication expenses, advertising expenses, membership, periodicals, publications, hireexpenses, rental, leases, postage and freight etc.

Utilities (gas, electricity, water, etc.)Expenditures made to respective agencies for the provision of power, gas or water. Excludes expenditures incurred for the re-instatement of road works on behalf of these agencies.

Depreciation on non-current assetsDepreciation expense raised on all classes of assets.

Loss on asset disposalLoss on the disposal of fixed assets.

Interest expensesInterest and other costs of finance paid, including costs of finance for loan debentures, overdraftaccommodation and re-financing expenses.

InsuranceAll insurance other than worker's compensation and health benefit insurance included as a costof employment.

Other expenditureStatutory fees, taxes, provision for bad debts. Donations and subsidies made to community groups.



2007-08



3. CASH AND CASH EQUIVALENTS $ $

Unrestricted 364,815 552,895 Restricted (Cash Reserves) 6,381,376 6,728,955

6,746,191 7,281,850 The following restrictions have been imposed byregulations or other externally imposed requirements:

Cash Reserves:Land Purchase & Development Reserve 82,368 781,108 Council Buildings Construction Reserve 107,303 6,813 Eastern Suburbs Water Pipeline Reserve 191,073 179,665 Jetty Reserve 304,084 218,383 Aerodrome Reserve 1,645,491 1,411,458 Salmon Gums Quarry Reserve 7,558 7,051 Municipal Museum Reserve 1,741 21,648 Meat Inspection Reserve 59,682 53,509 Off Street Parking Reserve 13,271 12,381 Sanitation (Rubbish Removal) Services Reserve 830,629 623,039 Esperance Home Care Fundraising Reserve 51,025 51,869 HACC Asset Replacement Reserve 54,562 96,852 Gravel Resources Compensation Reserve 40,861 38,120 Southern Suburbs Water Supply Reserve 29,008 27,062 Cemetery Reserve 16,972 13,501 Unspent Grants & Contributions Reserve 1,138,837 1,698,387 Historical Village Reserve 41,677 23,159 Plant Replacement Reserve 316,909 275,304 Employee Entitlements- Annual Leave Reserve 142,327 132,780 Employee Entitlements- Long Service Leave Reserve 526,231 511,380 History Book Reserve 12,172 10,339 Tanker Jetty Donations Reserve 17,946 14,019 Library Reserve 22,712 18,525 Public Open Space Contributions Reserve - 32,082 Lake Monjingup Reserve - 82 Drainage Reserve 63,000 58,775 Building Maintenance Reserve 242,040 164,401 Community Bus Maintenance & Replacement Reserve 42,582 31,402 Governance & Workers Compensation Reserve 189,315 125,681 Shark Lake Industrial Park - Future Development Reserve - 90,180 Staff Retention & Attraction Reserve 120,000 - IT System & Process Development Reserve 70,000 -

Total Reserves 6,381,376 6,728,955



2007-08



4. TRADE AND OTHER RECEIVABLES $ $

(a) CurrentRates and Rubbish 140,676 173,545 General Receivables 1,766,153 2,723,249 Goods & Services Tax 170,545 120,573 Interest 1,641 7,845 Self Supporting Loan Debtors 78,210 78,729

2,157,225 3,103,941 (b) Non-Current

Self Supporting Loan Debtors 535,761 615,548 Rates Outstanding - Pensioners 29,051 22,956 Other - 5,562

564,812 644,066

5. INVENTORIES

(a) CurrentRoadmaking Materials 131,279 161,153 Fuel and Oils 49,232 30,370 Goods held for Resale 49,574 49,219 Land Held for Resale (Shark Lake Industrial Park) 1,170,254 939,216

1,400,339 1,179,958

(b) Non-CurrentLand Held for Resale (Shark Lake Industrial Park) 922,584 1,264,516

922,584 1,264,516



2007-08



6. PROPERTY, PLANT AND EQUIPMENT $ $(a)

Land and Buildings - cost 31,858,103 30,743,122 Less Accumulated Depreciation (6,642,705) (6,098,246)

25,215,398 24,644,876

Office Furniture - cost 203,988 336,413 Less Accumulated Depreciation (145,818) (264,832)

58,170 71,581

Office Equipment - cost 482,784 558,761 Less Accumulated Depreciation (329,044) (373,403)

153,740 185,358

Other Furniture & Equipment - cost 775,454 839,633 Less Accumulated Depreciation (629,007) (701,316)

146,447 138,317

Other Plant and Equipment -cost 1,871,830 2,025,812 Less Accumulated Depreciation (1,389,539) (1,422,387)

482,291 603,425

Motor Vehicles - cost 2,642,916 2,270,110 Less Accumulated Depreciation (679,498) (595,703)

1,963,418 1,674,407

Construction other than buildings - cost 2,958,527 2,784,545 Less Accumulated Depreciation (1,454,547) (1,306,758)

1,503,980 1,477,787

Road Making Plant - cost 8,185,147 8,171,672 Less Accumulated Depreciation (3,111,301) (3,332,593)

5,073,846 4,839,079

Total Property, Plant and Equipment 34,597,290 33,634,830



2007-08


6. PROPERTY, PLANT AND EQUIPMENT (Continued)

(b) Movements in Carrying Amounts

The following represents the movement in the carrying amounts of each class of property, plant and equipment between thebeginning and the end of the current financial year.

Land Other Construction Road& Office Office Furniture & Plant & Motor other than Making

Buildings Furniture Equipment Equipment Equipment Vehicles Building Plant Total

Balance as at 1st July 2007 24,644,876 71,581 185,358 138,317 603,425 1,674,407 1,477,787 4,839,079 33,634,830

Additions 1,156,456 9,105 23,835 39,151 73,374 992,193 188,611 1,395,594 3,878,319

(Disposals) (18,380) (14,078) (11,037) (7,547) (46,462) (426,861) (702) (392,683) (917,750)

Write-downs - - - - - - - - -

Depreciation (Expense) (567,554) (8,438) (44,416) (23,474) (148,046) (276,321) (161,716) (768,144) (1,998,109)

Balance as at 30 June 2008 25,215,398 58,170 153,740 146,447 482,291 1,963,418 1,503,980 5,073,846 34,597,290



2007-08


2008 20077. INFRASTRUCTURE $ $

(a)Roads - cost 273,325,875 266,615,624 Less Accumulated Depreciation (93,671,701) (88,538,837)

179,654,174 178,076,787

Footpaths - cost 5,169,307 4,651,608 Less Accumulated Depreciation (1,512,511) (1,352,095)

3,656,796 3,299,513

Drainage - cost 3,201,080 2,832,873 Less Accumulated Depreciation (1,119,462) (1,044,492)

2,081,618 1,788,381

Culverts & Pipes - cost 4,506,113 4,506,113 Less Accumulated Depreciation (3,500,991) (3,388,338)

1,005,122 1,117,775

Parks & Ovals - Cost 6,268,506 6,258,991 Less Accumulated Depreciation (5,322,752) (5,009,798)

945,754 1,249,193

Street Lighting - Cost 399,625 373,600 Less Accumulated Depreciation (85,804) (73,025)

313,821 300,575

Tourist Road Signs - Cost 47,542 47,542 Less Accumulated Depreciation (9,072) (7,632)

38,470 39,910

Esperance Airport - Cost 2,601,360 2,398,359 Less Accumulated Depreciation (550,863) (483,853)

2,050,497 1,914,506

Parking - Cost 420,500 420,500 Less Accumulated Depreciation (232,678) (204,645)

187,822 215,855

Other - Cost 1,827,750 1,595,979 Less Accumulated Depreciation (264,417) (214,934)

1,563,333 1,381,045

Total Infrastructure Assets 191,497,407 189,383,540



2007-08


7. INFRASTRUCTURE (Continued)

(b) Movements in Carrying Amounts

The following represents the movement in the carrying amounts of each class of infrastructure between thebeginning and the end of the current financial year.

Culverts Parks Street Tourist Road Esperance Roads Footpath Drainage & Pipes & Ovals Lighting Signs Airport Parking Other

Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Total

Balance as at 1st July 2007 178,076,787 3,299,513 1,788,381 1,117,775 1,249,193 300,575 39,910 1,914,506 215,855 1,381,045 189,383,540

Additions 6,710,252 517,699 368,207 - 9,515 26,025 - 203,001 - 231,771 8,066,470

(Disposals) - - - - - - - - - - -

Write-downs - - - - - - - - - - -

Depreciation (Expense) (5,132,865) (160,416) (74,970) (112,653) (312,954) (12,779) (1,441) (67,010) (28,033) (49,482) (5,952,603)

Balance as at 30 June 2008 179,654,174 3,656,796 2,081,618 1,005,122 945,754 313,821 38,470 2,050,497 187,822 1,563,333 191,497,407



2007-08


2008 20078. TRADE AND OTHER PAYABLES $ $

CurrentSundry Creditors 1,464,813 986,730 Accrued Interest on Long Term Borrowings 5,802 71,652 Accrued Salaries & Wages 124,836 67,913

1,595,451 1,126,295

9. LONG TERM BORROWINGS

(a) CurrentSecured by Floating Charge Debentures 604,786 2,364,195

604,786 2,364,195

(b) Non-CurrentSecured by Floating Charge Debentures 535,761 615,548

535,761 615,548

Additional detail on borrowings is provided in Note 21.

10. PROVISIONS

(a) CurrentProvision for Employee Annual Leave 744,839 668,540 Provision for Employee Long Service Leave 500,993 519,940

1,245,832 1,188,480 (b) Non-Current

Provision for Employee Annual Leave - - Provision for Employee Long Service Leave 135,722 94,580

135,722 94,580

11. RESERVES - ASSET REVALUATION 2008 2007Actual Actual

Asset revaluation reserves have arisen on $ $revaluation of the following classes of assets:

(a) Land and BuildingsBalance as at 1 July 2007 14,914,317 14,914,317 Revaluation Increment - - Revaluation Decrement - - Balance as at 30 June 2008 14,914,317 14,914,317

(b) RoadsBalance as at 1 July 2007 89,470,833 89,470,833 Revaluation Increment - - Revaluation Decrement - - Balance as at 30 June 2008 89,470,833 89,470,833

TOTAL ASSET REVALUATION RESERVES 104,385,150 104,385,150



2007-08



12. RESERVES - CASH BACKED $ $ $

(a) Land Purchase & Development ReserveOpening Balance 781,108 781,108 434,375 Amount Set Aside / Transfer to Reserve 54,427 23,433 494,366 Amount Used / Transfer from Reserve (753,167) (587,993) (147,633) Closing Balance 82,368 216,548 781,108

(b) Council Buildings Construction ReserveOpening Balance 6,813 6,813 73,870 Amount Set Aside / Transfer to Reserve 100,490 409 3,602 Amount Used / Transfer from Reserve - - (70,659) Closing Balance 107,303 7,222 6,813

(c) Eastern Suburbs Water Pipeline ReserveOpening Balance 179,665 179,665 168,433 Amount Set Aside / Transfer to Reserve 20,514 25,731 11,232 Amount Used / Transfer from Reserve (9,106) (13,700) - Closing Balance 191,073 191,696 179,665

(d) Jetty ReserveOpening Balance 218,383 218,383 81,768 Amount Set Aside / Transfer to Reserve 85,701 13,103 136,615 Amount Used / Transfer from Reserve - - - Closing Balance 304,084 231,486 218,383

(e) Aerodrome ReserveOpening Balance 1,411,458 1,411,458 992,464 Amount Set Aside / Transfer to Reserve 234,033 325,881 756,598 Amount Used / Transfer from Reserve - (213,515) (337,604) Closing Balance 1,645,491 1,523,824 1,411,458

(f) Salmon Gums Quarry ReserveOpening Balance 7,051 7,051 6,636 Amount Set Aside / Transfer to Reserve 507 423 415 Amount Used / Transfer from Reserve - - - Closing Balance 7,558 7,474 7,051

(g) Municipal Museum ReserveOpening Balance 21,648 21,648 22,171 Amount Set Aside / Transfer to Reserve 1,556 1,299 1,295 Amount Used / Transfer from Reserve (21,463) (2,500) (1,818) Closing Balance 1,741 20,447 21,648

(h) Meat Inspection ReserveOpening Balance 53,509 53,509 53,494 Transfer to Reserve 6,173 3,211 3,343 Transfer from Reserve - (10,946) (3,328) Closing Balance 59,682 45,774 53,509



2007-08


2008 2008 200712. RESERVES - CASH BACKED (Continued) Actual Budget Actual

$ $ $

(i) Off Street Parking ReserveOpening Balance 12,381 12,381 11,653 Transfer to Reserve 890 743 728 Transfer from Reserve - - - Closing Balance 13,271 13,124 12,381

(j) Sanitation (Rubbish Removal) Services ReserveOpening Balance 623,039 623,039 406,750 Transfer to Reserve 245,077 94,257 218,906 Transfer from Reserve (37,487) (92,000) (2,617) Closing Balance 830,629 625,296 623,039

(k) HACC Asset Replacement ReserveOpening Balance 96,852 96,852 - Transfer to Reserve 5,710 5,811 96,852 Transfer from Reserve (48,000) (66,966) - Closing Balance 54,562 35,697 96,852

(l) Esperance Homecare Fundraising ReserveOpening Balance 51,869 51,869 60,336 Transfer to Reserve 3,729 7,612 44,458 Transfer from Reserve (4,573) (57,939) (52,925) Closing Balance 51,025 1,542 51,869

(m) Gravel Resources Compensation ReserveOpening Balance 38,120 38,120 36,114 Transfer to Reserve 2,741 2,287 2,257 Transfer from Reserve - (10,000) (251) Closing Balance 40,861 30,407 38,120

(n) Southern Suburbs Water Supply ReserveOpening Balance 27,062 27,062 25,617 Transfer to Reserve 1,946 1,624 1,601 Transfer from Reserve - - (156) Closing Balance 29,008 28,686 27,062

(o) Cemetery ReserveOpening Balance 13,501 13,501 10,260 Transfer to Reserve 3,471 810 3,241 Transfer from Reserve - - - Closing Balance 16,972 14,311 13,501

(p) Unspent Grants & Contributions ReserveOpening Balance 1,698,387 1,698,387 1,537,589 Transfer to Reserve 521,308 31,662 911,096 Transfer from Reserve (1,080,858) (1,170,675) (750,298) Closing Balance 1,138,837 559,374 1,698,387

(q) Historical Village ReserveOpening Balance 23,159 23,159 21,797 Transfer to Reserve 18,518 1,390 1,362 Transfer from Reserve - - - Closing Balance 41,677 24,549 23,159



2007-08


2008 2008 200712. RESERVES - CASH BACKED (continued) Actual Budget Actual

$ $ $

(r) Plant Replacement ReserveOpening Balance 275,304 275,304 291,633 Transfer to Reserve 41,605 16,518 122,671 Transfer from Reserve - (47,000) (139,000) Closing Balance 316,909 244,822 275,304

(s) Employee Entitlements- Annual Leave ReserveOpening Balance 132,780 132,780 288,168 Transfer to Reserve 9,547 7,967 18,010 Trans. to Employee Entitlements- LSL Reserve - - (130,000) Transfer from Reserve - (22,000) (43,398) Closing Balance 142,327 118,747 132,780

(t) Employee Entitlements- Long Service Leave ReserveOpening Balance 511,380 511,380 369,162 Transfer to Reserve 36,767 30,683 153,072 Transfer from Reserve (21,916) (93,000) (10,854) Closing Balance 526,231 449,063 511,380

(u) History Book ReserveOpening Balance 10,339 10,339 8,570 Transfer to Reserve 1,833 1,620 1,769 Transfer from Reserve - - - Closing Balance 12,172 11,959 10,339

(v) Tanker Jetty Donations ReserveOpening Balance 14,019 14,019 10,721 Transfer to Reserve 3,927 3,141 3,298 Transfer from Reserve - - - Closing Balance 17,946 17,160 14,019

(w) Library ReserveOpening Balance 18,525 18,525 13,212 Transfer to Reserve 4,187 2,612 5,313 Transfer from Reserve - - - Closing Balance 22,712 21,137 18,525

(x) Public Open Space Contributions ReserveOpening Balance 32,082 32,082 30,195 Transfer to Reserve 2,078 1,925 1,887 Transfer from Reserve (34,160) - - Closing Balance - 34,007 32,082

(y) Lake Monjingup ReserveOpening Balance 82 82 77 Transfer to Reserve 6 5 5 Transfer from Reserve (88) - - Closing Balance - 87 82

(z) Drainage ReserveOpening Balance 58,775 58,775 53,940 Transfer to Reserve 4,225 3,527 4,835 Transfer from Reserve - - - Closing Balance 63,000 62,302 58,775



2007-08



12. RESERVES - CASH BACKED (Continued) $ $ $

(aa) Building Maintenance ReserveOpening Balance 164,401 164,401 24,784 Transfer to Reserve 155,929 4,932 149,617 Transfer from Reserve (78,290) (140,883) (10,000) Closing Balance 242,040 28,450 164,401

(ab) Community Bus Maintenance & Replacement ReserveOpening Balance 31,402 31,402 19,646 Transfer to Reserve 11,180 11,884 11,756 Transfer from Reserve - - - Closing Balance 42,582 43,286 31,402

(ac) Governance & Workers Compensation ReserveOpening Balance 125,681 125,681 - Transfer to Reserve 63,634 9,041 125,681 Transfer from Reserve - - - Closing Balance 189,315 134,722 125,681

(ad) Shark Lake Industrial Park - Future Development ReserveOpening Balance 90,180 90,180 - Transfer to Reserve 5,841 655,911 90,180 Transfer from Reserve (96,021) (683,797) - Closing Balance - 62,294 90,180

(ae) Shark Lake Industrial Park - Environmetal Monitoring andLandscape/Drainage MaintenanceReserveOpening Balance - - - Transfer to Reserve - 30,000 - Transfer from Reserve - (3,000) - Closing Balance - 27,000 -

(af) Shark Lake Industrial Park -Infrastructure Contingency ReserveOpening Balance - - - Transfer to Reserve - 20,000 - Transfer from Reserve - - - Closing Balance - 20,000 -

(ag) Staff Retention & Attraction ReserveOpening Balance - - - Transfer to Reserve 120,000 - - Transfer from Reserve - - - Closing Balance 120,000 - -

(ah) IT System & Process Development ReserveOpening Balance - - - Transfer to Reserve 70,000 - - Transfer from Reserve - - - Closing Balance 70,000 - -

Total Cash Backed Reserves 6,381,376 # 4,852,493 # 6,728,955



2007-08


12. RESERVES - CASH BACKED (Continued)

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

In accordance with council resolutions in relation to each reserve account, the purpose for whichthe reserves are set aside are as follows:

Land Purchase & Development ReserveEstablished to fund land improvements and sub-division development. Funded by land sales.

Council Buildings Construction ReserveEstablished to provide a fund for the construction of new community facilities and upgrading of existing Council owned buildings. Funded from General Purpose Income.

East Suburbs Water Pipeline ReserveEstablished to provide funds to recycle waste water to recreation grounds.Funded by the proceeds from the sale of water.

Jetty ReserveEstablished to provide funds for future maintenance and repair of the main jetty opposite GladstoneStreet. Funded from General Purpose Income.

Aerodrome ReserveEstablished to fund future development and upgrades of the airport facility. Funded by the annual surplus derived from operation of the airport.

Salmon Gums Quarry ReserveEstablished to fund the rehabilitation of the Salmon Gums Quarry following exhaustion of its gravel reserves. Funded from General Purpose Income.

Municipal Museum ReserveEstablished to provide funds for future major repairs or renovations to the museum building. Funded from the annual surplus derived from museum entrance fees after expenses.

Meat Inspection ReserveA contingency fund for the purpose of employing a meat inspector if the existing contracted meat inspection service failed to fulfil its obligations.

Off Street Parking ReserveEstablished to provide funds for the future development of central business car parking in order to make provisions for future business expansion of the CBD. Funded from General Purpose Income.

Sanitation (Rubbish Removal) Services ReserveEstablished to fund the purchase of major sanitation equipment and for the future development of waste disposal facilities. Funded from the annual surplus derived from property rubbish disposal/ collection fees after expenses.

HACC Asset Replacement ReserveEstablished for the purpose of holding surplus cash from the operation of HACC activities byEsperance Home Care in accordance with HACC guidelines.

Esperance Home Care Fundraising ReserveEstablished for the purpose of holding the net proceeds of volunteer fundraising activities relating tothe operation of Esperance Home Care.



2007-08



Gravel Resources Compensation ReserveEstablished for the purpose of paying compensation to land owners for damages and inconvenience.caused by Council accessing gravel supplies on private property under the provisions of the Local Government and Public Works Act Legislation. Also used to fund works provided by Council by agreement with the landowner in lieu of a compensation payment. Funded from General Purpose Income.

Southern Suburbs Water Supply ReserveEstablished to provide funds to recycle waste water to recreation grounds. Funded by the proceeds of the sale of water.

Cemetery ReserveEstablished to fund Maintenance at the Shire of Esperance Cemetery

Unspent Grants & Contributions ReserveEstablished for the purpose of containing funds that are derived from unspent or prepaid grants and contribution from external parties. Funded from external sources.

Historical Village ReserveEstablished to fund future improvements and major building repairs at the historical village. Funded from the surplus derived from on site property rentals after operating and maintenance expenses.

Plant Replacement ReserveCouncil’s Policy is to minimise and if possible eliminate any need to rely upon loan finance or unreasonable rate increases to finance the acquisition of major plant items. Funding is from the General Purpose Income. Amounts allocated will be re-assessed annually in response to revisions of the five year plant replacement program and the associated forward cost estimates.

Employee Entitlements- Annual Leave ReserveEstablished to fund future commitments for employee entitlements incurred by the Council as a result of employing staff and workers in relation to Annual/Recreation leave. Funded by general purpose income.

Employee Entitlements- Long Service Leave ReserveThe purpose of this Reserve is to fund a portion of future commitments for employee entitlements incurred as a result of employing staff and workers in relation to Long Service Leave.

History Book ReserveEstablished to accumulate the proceeds from the sale of the Shire of Esperance history book. Theaccumulated funds are intended to offset future printing costs of the history book.

Tanker Jetty Donations ReserveEstablished to accumulate donated funds for the restoration and maintenance of the tanker jetty.

Library ReserveEstablished to hold the net proceeds from computer user charges at the Library to be used forthe future replacement and improvement of computer facilities to the general public.

Public Open Space Contributions ReserveEstablished to hold funds provided by developers to the Council for the purpose of provisionof public open space in the future.

Lake Monjingup ReserveEstablished to hold the proceeds of fundraising that is used specifically on works at the LakeMonjungup Reserve

Drainage ReserveEstablished to hold contributions made to the Council by Developers for the establishment of Drainage within the Esperance District.



2007-08



Building Maintenance ReserveEstablished to hold unexpended funds from the Building Maintenance Program for the use of building maintenance and refurbishment of Council buildings.

Community Bus Maintenance & Replacement ReserveEstablished to provide funds for the replacement and major maintenance of the Seniors CommunityBus. Funded from the revenue received from the hire of the Seniors Community Bus.

Governance & Workers Compensation ReserveEstablished for the purpose of future workers compensation insurance costs under the performancebased contribution scheme; or cyclical gross rental valuation cost for rating purposes; or unforeseenlegal costs.

Shark Lake Industrial Park - Future Development ReserveAll net proceeds of the sale of land at the Shark Lake Industrial Park to be held in reserveto fund future development at the Industrial Park.

Shark Lake Industrial Park - Environmental Monitoring and Landscape/Drainage Maintenance ReserveDirect contribution of $10,000 each by the Shire of Esperance, Esperance Port Authority andCBH and any subsequent Specified Area Rate applied to landowners within the Shark LakeIndustrial Park, to cover costs of undertaking water sampling and environmental monitoring as wellas maintaining landscape areas and drainage.

Shark Lake Industrial Park - Infrastructure Contingency ReserveContingency to cover any remedial works that may be required on infrastructure at the Shark LakeIndustrial Park, comprised of $25,000 contributions from the Shire of Esperance and EsperancePort Authority.

Staff Retention and Attraction ReserveEstablished to assist with the funding of future employment initiatives linked to the Enterprise BargainingAgreement or other staff related matters. Funded from savings within the wage and salary budget.

IT System & Process Development ReserveEstablished to finance the acquisition and enhancement of information technology across the Shire.Ongoing appropriations from the Municipal Fund are provided as and when needed.

Expected UsageThe majority of the Land Development Reserve & Building Maintenance Reserve is expected to be utilised during 2008-09.The Unspent Grants & Contributions Reserve is expected to reduce considerably during 2008-09 asa result of projects being completed.The remaining Reserves have funds applied to projects and may be reimbursed from the Municipal Fund on an ongoing basis each year as determined by Council during the budget process. The current year'smovements in to or out of reserves are disclosed at Note 12 above. Any change in the purpose of reserve funds is made in accordance with the Local Government Act and Local Government Financial ManagementRegulations.



2007-08


13. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash

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


$ $ $Cash and Cash Equivalents 6,746,191 5,102,524 7,281,850

(b) Reconciliation of Net Cash Provided ByOperating Activities to Result

Net Profit or Loss/Result 2,664,693 2,541,618 1,980,998

Depreciation 7,950,712 7,559,024 7,776,986 (Increase)/Decrease in Receivables 945,664 993,922 (1,597,805) (Profit)/Loss on Sale of Asset (307,340) (1,448,817) 54,277 (Increase)/Decrease in Inventories 10,657 40,742 (48,106) Increase/(Decrease) in Payables 469,156 (29,446) 232,991 Increase/(Decrease) in Employee Provisions 98,494 114,766 (132,372) Grants/Contributions for the Development of Assets (4,145,311) (4,710,862) (3,727,526) Net Cash from Operating Activities 7,686,725 5,060,947 4,539,443

(c) Credit Standby ArrangementsBank Overdraft limit 200,000 400,000 400,000 Bank Overdraft at Balance Date - - - Credit Card Facility 31,000 31,000 31,000 Credit Card Balance at Balance Date - - (8,212) Total Amount of Credit Unused 231,000 431,000 422,788

The above overdraft is secured by way of floating debenture over the Shire's income.

(d) Borrowing FacilitiesLoan Facilities - Current 604,786 2,364,195 Loan Facilities - Non-Current 535,761 615,548 Total Facilities in Use at Balance Date 1,140,547 2,979,743 Un-used Loan Facilities at Balance Date 583,779 583,779



2007-08



14. CAPITAL AND LEASING COMMITMENTS $ $

(a) Finance Leasing and Hire Purchase Commitments

Nil Nil

(b) Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the accounts.

Payable:- not later than one year 169,568 96,171 - later than one year but not later than five years 185,312 50,537 - later than five years - -

354,880 146,708

(c) Capital Expenditure Commitments

Capital expenditure commitments that have been contracted for as at the reporting date which have notbeen recognised as liabilities in the statement of financial position is as follows:


$ $Contracted For:- Capital Expenditure Projects Nil Nil

Payable:- not later than one year Nil Nil

15. CONTINGENT LIABILITIES

The Shire of Esperance is unaware of any contingent liabilities at the current reporting date.

The Shire of Esperance has no current finance leasing or hire purchase commitments.



2007-08


16. JOINT VENTURE AND MAJOR LAND TRANSACTION

(a) Shark Lake Industrial Park - Super Lot Stage

(i) Details

The Shire of Esperance participated in a joint venture with the Esperance Port Authority to purchaseand develop the Shark Lake Industrial Park during the reporting period. This joint venture involved theShire of Esperance and Esperance Port Authority entering into a 50/50 agreement to acquire anddevelop location 1044 Shark Lake Road Monjingup Esperance.

The first stage of the development was the creation of 3 superlots. This was completed during the yearand resulted in the transfer of ownership of one superlot to each party. The third superlot was sold to Co-operative Bulk Handling under an existing lease and option agreement.

It is expected that during the 2008/09 financial year, finalisation of the joint venture arrangement will becompleted.

The Shire of Esperance superlot is to be further subdivided, details of which are provided below - 16 (b).

The following transactions are those in which the Shire of Esperance has an interest:

(ii) Current Year Transactions 2008 2007Actual Actual

$ $Operating IncomePort Authority & Other Contributions 13,492 19,432 Housing Rent 2,925 3,900 Lease of Land- Grazing/Industrial (45,090) 94,295 Profit on Sale of Land 310,621 -

281,948 117,627 Operating ExpenseEmployment Expenses (25,154) (38,069) Advertising & Promotions - (641) Printing & Office Supplies - (623) Land Maintenance (279) (154) Insurance (159) (158) Interest (94,141) (63,288) Administration Allocation (68,525) (87,414)

(188,258) (190,347)

Operating Result 93,690 (72,720)

Capital IncomeTransfer from Land Development Reserve 481,764 - Subdivision Land Sale - Shire of Esperance Portion 1,054,910 - Subdivision Land Sale - Esperance Port Authority Portion 1,054,910 - Loan Proceeds - 2,285,466

2,591,584 2,285,466 Capital ExpenseLoan Repayment (2,285,466) - Road Works (90,945) (684,315) Drainage (44,358) (715,448) Electricity (2,590) (468,644) Fencing (14,970) (61,499) Legal Fees (10,025) (4,000) Planning and Environment (15,058) (20,319) Other (43,991) (71,845)

(2,507,403) (2,026,070)

Non-Operating Result 84,181 259,396

Total Net Result 177,871 186,676



2007-08


16. JOINT VENTURE AND MAJOR LAND TRANSACTION Continued

(a) Shark Lake Industrial Park - Superlot Stage (Continued)

(iii) Expected Future Cashflows 2009Inflows/(Outflows) Budget

$

Operating Cash InflowsContributions 1,000

Operating Cash OutflowsEmployment Expenses (1,000) Net Operating Cash Inflows/(Outflows) 0

Capital Cash InflowsLoan Borrowings 131,500

Capital Cash OutflowsLand Purchase - Land Development Costs (131,500)

-

Net Capital Cash Flows 0

(b) Shark Lake Industrial Park - Shire Subdivision.

(i) Details

During the 2008-09 financial year the Council intends to continue to undertake a major land transactionas defined under the Local Government Act, 1995.

With the Superlot Stage of the Shark Lake Industrial Park subdivision nearing completion, Council intendsto further subdivide the acquired superlot into approximately 90 general industrial lots of varying sizes.

It is proposed that this development will be conducted over a number of stages with Stage 1 consisting of28 lots developed during 2008-09 at a total capital cost of $1,455,000 excluding the costs associated withacquiring the superlot.



2007-08


16. JOINT VENTURE AND MAJOR LAND TRANSACTION Continued

(b) Shark Lake Industrial Park - Shire Subdivision.

(ii) Current Year Transactions 2008 2007Actual Actual

$ $Operating Income

- - 0 0

Operating ExpenseAdvertising & Promotions (65) - Legal Expenses (1,262) - Interest (17,675) -

(19,002) -

Operating Result (19,002) 0

Capital IncomeLoan Proceeds 59,000 -

59,000 0Capital ExpenseElectricity Connection (37,230) Engineering Design (4,826) - Fire Services (14,688) - Other Expenses - (5,500)

(56,744) (5,500)

Non-Operating Result 2,256 (5,500)

Total Net Result (16,746) (5,500)

(iii) Expected Future Cashflows 2009Inflows/(Outflows) Budget

$

Operating Cash InflowsManagement Fees 30,000 Transfer from Land Development Reserve 20,000

Operating Cash OutflowsAdvertising & Promotion (15,000) Interest on Borrowings (15,000) Engineering Allocation (20,000) Administration Allocation (80,000) Net Operating Cash Inflows/(Outflows) (80,000)

Capital Cash InflowsLoan Borrowings 1,200,000 Land Sales 1,550,000

Capital Cash OutflowsLand Development Costs (1,396,500) Loan Repayments (1,296,000) Transfer to Reserves (57,500)

-



2007-08


Net Capital Cash Flows (80,000)


17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY2008 2007

Actual Actual$ $

General Purpose Funding 145,790 165,155 Law, Order, Public Safety 1,483,992 1,371,084 Health 92,630 91,970 Education and Welfare 3,422,478 2,907,970 Community Amenities 1,951,812 1,705,536 Recreation and Culture 20,744,525 20,457,453 Transport 201,141,224 197,724,110 Economic Services 323,782 218,058 Other Property and Services 3,339,414 4,313,403 Unallocated 5,240,201 7,537,962

237,885,848 236,492,701

18. FINANCIAL RATIOS

2008 2007 2006Current Ratio 1.4 1.37 1.88Untied Cash to Trade Creditors Ratio 0.25 0.56 1.02Debt Ratio 0.02 0.02 0.01Debt Service Ratio 0.11 0.01 0.01Gross Debt to Revenue Ratio 0.05 0.16 0.03Gross Debt to Economically Realisable Assets Ratio 0.03 0.06 0.01Rate Coverage Ratio 0.33 0.35 0.35Outstanding Rates Ratio 0.02 0.02 0.03

The above rates are calculated as follows:

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

with restricted assets

Untied Cash to Trade Creditors Ratio Untied cashUnpaid trade creditors

Debt Ratio Total liabilitiesTotal assets

Debt Service Ratio Debt Service Cost (Principal & Interest)Available operating revenue

Gross Debt to Revenue Ratio Gross debtTotal revenue

Gross Debt to Gross debt Economically Realisable Assets Ratio Economically realisable assets

Rate Coverage Ratio Net rate revenueOperating revenue

Outstanding Rates Ratio Rates outstandingRates collectable



2007-08


19. TRUST FUNDS

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

Balance Amounts Amounts Balance1-Jul-07 Received Paid 30-Jun-08

Details $ $ ($) $Proceeds of Land Sales - Rates Recovery 2,747 - - 2,747 Town Planning Development Bonds 88,256 36,756 (20,726) 104,286 Caravan Park Lease Bonds 39,535 2,594 - 42,129 TransWA Bus Transport 17,896 272,603 (289,635) 864 Dept of Transport Licensing Agency 104,071 8,267,551 (8,243,689) 127,933 Air BP Fuel Agency 6,069 4,290 (6,069) 4,290 Builders Reinstatement Bonds 29,400 23,401 (13,700) 39,101 BCITF Levy 7,242 77,809 (81,970) 3,081 Staff Housing Bonds 5,115 3,580 (2,527) 6,168 Subdivision Bonds 7,555 8,405 - 15,960 Homecare Bus Bonds 1,500 200 (600) 1,100 Senior Citizens Centre Bonds 500 1,230 (1,730) - Builders Reg. Board Levy (36) 15,114 (15,116) (38) Engineering Sub-division Bonds 234,657 845,459 - 1,080,116 Other 3,432 77,246 (1,300) 79,378 Commercial Building Bonds 930 900 (334) 1,496 Contributions to Public Open Space - 45,723 - 45,723

548,869 9,682,861 (8,677,396) 1,554,334

20. DISPOSALS OF ASSETS (2007-08 FINANCIAL YEAR)

The following assets were disposed of during the year.

Net Book Value Sale Price Profit (Loss)Actual Budget Actual Budget Actual Budget

$ $ $ $ $ $Land Held for Resale 744,289 2,216,180 1,054,910 3,542,000 310,621 1,325,820 Land & Buildings 19,081 283,619 - 360,000 (19,081) 76,381 Other Plant and Equipment 46,462 9,900 - (36,562) - Other Furniture & Equipment 32,661 - - (32,661) - Motor Vehicles 426,860 571,144 372,227 502,000 (54,632) (69,144) Plant & Machinery 392,682 377,610 532,338 493,370 139,655 115,760

1,662,035 3,448,553 1,969,375 4,897,370 307,340 1,448,817

2008 2008Actual Budget

Summary $ $Profit on Asset Disposals 521,441 1,556,739 Loss on Asset Disposals (214,101) (107,922)

307,340 1,448,817



2007-08


21. INFORMATION ON BORROWINGS(a) Debenture Repayments

Borrowing Interest Maturity Principal New Interest Repayments Principal PrincipalInstitution Rate Date 1-Jul-07 Loans Repayments 30-Jun-08

Particulars % Actual Budget Actual Budget Actual BudgetEducation & WelfareEsperance Aged Care Facility * - - - - - - 6,000 - 6,753 - 493,247 Recreation & CultureLoan 244 - Netball C/Rooms * WATC 7.52 10/07 987 - 10 9 987 987 - - Loan 261 - Pink Lake Country Club * WATC 6.65 07/22 239,771 - 15,577 15,577 9,427 9,427 230,344 230,344 Loan 262 - Esp. Surf Club * WATC 8.95 01/11 15,313 - 1,159 1,123 3,605 3,605 11,708 11,708 Loan 265 - Esp. Indoor Sport * WATC 6.59 04/12 51,054 - 3,119 3,117 8,931 8,931 42,123 42,123 Loan 270 - Condingup Rec * WATC 5.35 09/08 8,114 - 279 278 6,448 6,448 1,666 1,666 Loan 271 - Newtown Lighting * WATC 6.03 04/09 12,525 - 537 538 6,075 6,075 6,450 6,450 Loan 273 - Esp. Cricket Club * WATC 7.11 03/10 3,762 - 226 225 1,167 1,167 2,594 2,594 Loan 274 - Esp. Golf Club * WATC 7.50 03/10 28,197 - 1,841 1,843 9,594 9,594 18,604 18,604 Loan 277 - Esp. Yacht Club * WATC 6.78 07/10 32,078 - 1,771 1,771 8,415 8,415 23,664 23,663 Loan 281 - Esp. Speedway * WATC 5.67 10/08 - - - - - - - Loan 283 - Cascade Rec Assoc * WATC 5.91 06/10 13,475 - 691 692 4,431 4,431 9,044 9,045 Loan 285 - Esp. Speedway * WATC 6.36 02/17 24,500 - 1,501 1,500 1,819 1,819 22,681 22,681 Loan 286 - Esp. Bowling Club * WATC 6.51 06/17 264,500 - 17,117 17,997 17,830 17,830 246,670 246,670 Other Property & ServicesTriplex Staff Housing - - - - - - 7,346 - - - 444,095 Flinders Subdivision - - - - - - - - - - 7,561,880 Loan 284 - Shark Lake I. Park ** WATC 6.65 10/07 798,624 - 798,624 798,624 - - Loan 284A - Shark Lake I. Park ** WATC 6.66 12/07 1,086,842 - 1,086,842 1,086,842 - - Loan 284B - Shark Lake I. Park ** WATC 6.68 12/07 400,000 - 400,000 400,000 - - Loan - Shark Lake I. Park ** WATC - - - - - - - 334,468 - - Loan 288 - SLIP/Flinders WATC 7.78 10/08 - 525,000 112 - - - 525,000 -

2,979,742 525,000 155,643 268,308 2,364,195 2,705,416 1,140,548 9,114,770 Funding of BorrowingsAll loan repayments were funded by general purpose income. Those loans denoted with a "*" are the subject of a repayment agreement that secured thereimbursement from a community organisation of all costs associated with the loan.(WATC = WA Treasury Corporation)

Shark Lake Industrial Park ** Loan is 50% underwritten by the Esperance Port Authority via Co-Ownership Agreement entered into between the Shire of Esperance and the Esperance Port Authority.

111,704 210,293



2007-08


21. INFORMATION ON BORROWINGS (CONTINUED)

(b) New Borrowings - 2007-08

Amount Borrowed Institution Loan Term Total Interest Amount Used Balance Type (Years) Interest & Rate Unspent

Particulars/Purpose Actual Budget Charges Actual Budget $Loan 288 - SLIP/Flinders 525,000 - WATC Debenture 1 13,601 7.78 525,000 - -

525,000 - 13,601 525,000 - -

(c) Unspent Loans

As at the reporting date, the Shire of Esperance did not hold any amount of unspent loan funds.

(d) Overdraft

Council established an overdraft facility of $200,000 on 12 July 2000 to assist with short term liquidityrequirements. The balance of the bank overdraft at 1 July 2007 and 30 June 2008 was $nil.

$$



2007-08


22. RATING INFORMATION - 2007-08 FINANCIAL YEAR

Rate in Number Rateable Rate Interim Back Total Budget Budget Budget Budgetdollar of Value Revenue Rates Rates Revenue Rate Interim Back Total

RATE TYPE Properties Actual Revenue Rate Rate RevenueGeneral RateGRV - Residential 0.088570 3,122 26,411,562 2,339,272 46,450 2,493 2,388,215 2,336,678 12,000 - 2,348,678 GRV - Commercial 0.088570 371 13,407,209 1,187,477 13,592 3,888 1,204,957 1,187,520 5,000 - 1,192,520 GRV - Vacant 0.088570 158 1,760,604 155,937 (4,366) (6,137) 145,433 151,300 - - 151,300 UV - Rural 0.010118 1,204 399,318,500 4,040,305 6,137 1,274 4,047,716 4,038,524 3,000 - 4,041,524 UV - Mining 0.010118 4 459,415 4,648 (1,873) (1,473) 1,303 4,648 - - 4,648 UV - Commercial/Industrial 0.010118 4 457,000 4,624 - - 4,624 4,624 - - 4,624 Sub-Totals 4,863 441,814,290 7,732,263 59,941 45 7,792,249 7,723,294 20,000 - 7,743,294

MinimumMinimum Rates $GRV - Residential 552.00 1,280 6,541,644 706,560 455 218 707,234 706,560 - - 757,992 GRV - Commercial 552.00 50 214,886 27,600 - - 27,600 27,600 - - 26,668 GRV - Vacant 552.00 718 2,432,471 396,336 16,441 147 412,924 396,336 - - 349,700 GRV - Lesser Service 276.00 76 24,325 20,976 1,036 - 22,012 20,976 - - 20,976 UV - Rural 552.00 47 1,846,720 25,944 137 - 26,081 25,944 - - 35,880 UV - Mining 552.00 108 1,028,894 59,616 (2,113) - 57,503 59,616 - - 62,376 UV - Commercial/Industrial 552.00 12 55,500 6,624 - - 6,624 6,624 - - 1,656 Sub-Totals 2,291 12,144,440 1,243,656 15,957 366 1,259,979 1,243,656 - - 1,255,248

9,052,228 8,998,542 Discounts (refer note 23a) (322,663) (323,569) Prepaid Rates 37,614 Totals 8,767,179 8,674,973



2007-08


23. DISCOUNTS, INCENTIVES, CONCESSIONS & WRITE-OFFS(2007-08 FINANCIAL YEAR)

Type Disc % Total BudgetCost/ Cost/

(a) Discounts Value ValueGeneral Rates Discount 5.00 322,663 323,569

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.

Total BudgetCost/ Cost/

(b) Write-Offs Value ValueGeneral Debtors 973 - Rate Assessments 13,076 700

14,049

(c) WaiversA waiver of rates in relation to commercial leases entered into with tenants of the Museum Village Parkhas been granted. This waiver is granted as part of a tenancy lease negotiated with each tenant.

(d) ConcessionsThe Council offers those residents who hold a current valid seniors concession card, a concession in respect of the following services:(I) Rubbish Collection Services, 50% of the normal fee applicable.(II) Dog registration fees, 50% of the normal fee applicable.(III) Various concessions on user charges at the Bay of Isles Leisure Centre (see below)

A concession of $38.50 is offered to Schools using the Shire Civic Centre for conventions, meetings andprize nights etc. on those fees normally charged.

Concessions of various fees are offered to holders of student cards, health care cards and pensioner cards. These concessions are available on pool/spa/sauna entry, health and fitness memberships to the gymnasium, aquatic area or whole complex, health and fitness classes and sport hall hire. Theseconcessions are available only upon presentation of a relevant card and are offered to make the Bay of Isles Leisure Centre financially accessible to everyone in the community.



2007-08


24. INTEREST CHARGES AND INSTALMENTS (2007-08 FINANCIAL YEAR)

Interest Admin. Revenue BudgetedRate (%) Charge Revenue

$ $ $Interest on Unpaid Rates (note 2a) 9.00% - 26,504 29,000 Interest on Instalments Plan (note 2a) 5.50% - 29,003 28,000

55,507 57,000

Ratepayers had the option of paying rates in four equal instalments, due on 27th September 2006,29th November 2006, 31st January 2007 and 4th April 2007. Interest was applied on the finalthree instalments.


25. FEES & CHARGES $ $ $

Governance 13,015 15,080 14,115 General Purpose Funding 1,955 1,000 784 Law, Order, Public Safety 35,531 31,490 29,958 Health 190,268 182,160 198,247 Education & Welfare 176,398 165,930 178,472 Community Amenities 1,836,824 1,697,522 1,624,661 Recreation & Culture 1,087,075 959,012 921,370 Transport 1,000,533 826,030 811,692 Economic Services 602,465 408,120 445,437 Other Property & Services 480,517 441,240 774,981

5,424,581 4,727,584 4,999,717

26. GRANT REVENUE 2008 2007Actual Actual

$ $(a) By Nature/Type:

Grants and Subsidies - operating 5,923,332 5,266,892 Grants and Subsidies - non-operating 3,640,313 3,230,109

9,563,645 8,497,001 (b) By Reporting Program:

General Purpose Funding 3,382,836 3,391,583 Law, Order, Public Safety 372,014 339,113 Education & Welfare 1,823,582 1,399,211 Community Amenities 42,031 37,743 Recreation and Culture 322,725 200,315 Transport ** 3,103,805 2,991,410 Economic Services 465,170 23,327 Other Property & Services 51,482 114,299

9,563,645 8,497,001



2007-08


9(a)10(a)

27. EMPLOYEE NUMBERS 2008 2007 2006

The number of full-time equivalentemployees at balance date. 181 172 168

2008 2008 200728. COUNCILLORS’ REMUNERATION Actual Budget Actual

$ $ $The following fees, expenses and allowances werepaid to council members and/or the president.

Meeting Fees 69,732 72,000 69,900 President’s Allowance 13,300 13,300 12,900 Deputy President's Allowance 3,325 3,325 1,850 Travelling Expenses 10,332 14,600 11,943 Telecommunications Allowance 15,950 16,500 16,568

112,639 119,725 113,161

29. EMPLOYEES REMUNERATION

Set out below, in bands of $10,000 is the number of employees of the Shire entitled to an annualsalary of $100,000 or more.

Details Salary Band $ 2008 2007Administration Regulations (19B) 2 1

- 11 -

$100,000 - $109,999$140,000 - $149,999$150,000 - $159,999



2007-08


30. MAJOR LAND TRANSACTIONS

Flinders Residential Subdivision(a) Details

The Council owns land, freehold at East Location 18, Lot 3 which is bounded by Ormonde Street andGoldfields Road. During the 2003/04 year the Council created 33 blocks from part of Lot 3. These blockswere sold at auction and the profit transferred into a Cash Reserve established for Land Development.The Council is planning to develop 90 Lots as a Stage 2 of the development and intends to sell Lotsover the next 2 - 4 financial years. The Council has developed a Business Plan in relation to this developmenta copy of which is available on request from the Council Administration Office.

(b) Current Year Transactions 2008 2007Actual Actual

Operating Income $ $Reimbursements - 436 Transfer from Land Development Reserve - 62,379

- 62,815 Operating ExpenseSelling Costs - (16,000) Feasibility Approval Studies (5,928) (34,315) Engineering Allocation (20,000) (12,500) Administration Allocation (62,140) (29,343)

(88,068) (92,158)

Capital IncomeLoan Proceeds 466,000 - Transfer from Land Development Reserve 15,551 15,551

481,551 15,551 Capital ExpenseProject Management & Design (364,928) - Development Costs (100,756) (15,551)

(465,684) (15,551)

Total (72,201) (29,343)

(c) Expected Future CashflowsInflows/(Outflows)

2009 2010 2011 2012Cash Inflows $ $ $ $Loan Borrowings 7,690,000 - - - Land Sales 4,000,000 6,000,000 6,000,000 2000000Transfer In from Reserve 42,000 - - -

11,732,000 6,000,000 6,000,000 2,000,000 Cash OutflowsPrinting & Stationary (2,000) (2,000) (2,000) (2,000) Interest Expense (300,000) (200,000) - - Landscaping Incentive - (120,000) (120,000) (70,000) Development Expenses (7,700,000) - - - Marketing & Selling Costs (140,000) (287,750) (287,750) (150,000) Repayment of Borrowings (4,000,000) (4,156,000) - - Engineering Allocation (40,000) (60,000) (60,000) (60,000) Administration Allocation (90,000) (70,000) (70,000) (70,000)

(12,272,000) (4,895,750) (539,750) (352,000)

Net Cash Flows (540,000) 1,104,250 5,460,250 1,648,000



2007-08


31. MAJOR TRADING UNDERTAKINGS

Esperance Aerodrome Council's objective is to maintain a safe landing airstrip and functional airport amenities conducive to

the promotion of the district as a tourist and business destination.Operating costs are met by landing fees charged. Annual surpluses are transferred to reserve fundsto finance future improvements to the facility.


$ $ $(a) Operating Statement

Operating Revenues Passenger Landing Fees 679,464 540,000 569,423 Commissions Fuel Agency 16,740 15,400 15,277 Rentals 13,374 13,200 12,542 Identification Charges 3,836 1,600 182 Other Sundry Income 716 570 420 Gain on Disposal of Asset - - 3,545 Reimbursement Operating Expenses 6,274 2,500 8,042

720,404 573,270 609,431 Less Operating Expenses Employee Expenses (151,146) (175,977) (111,650) Insurance (16,927) (19,631) (17,776) Building Expenses (5,462) (15,640) (16,827) Grounds & Strip Maintenance (85,408) (52,358) (44,130) Fuel Agency Expense (6,636) (5,800) (4,216) Marketing - (5,000) (7,393) Airport Identification Expenses (3,307) (1,600) (271) Administration Overheads (30,054) (30,368) (26,618) Depreciation (98,480) (97,052) (96,973) Other (43,135) (46,070) (31,043)

(440,555) (449,496) (356,897)

Operating Result 279,849 123,774 252,534

(b) Non-Operating Income & Expenditure Actual Budget Actual$ $ $

Capital Revenue Grants & Subsidies - 138,515 319,164 Proceeds on Disposal - - 24,545 Transfer From Reserve Fund 209,838 213,515 251,124

209,838 352,030 594,833 Less Capital Expenditure Land & Buildings - - (25,560) Infrastructure (203,001) (275,000) (43,836) Runway Extension - - (175,874) Plant & Equipment (6,837) - (5,855) Motor Vehicles - - (30,617) Transfers to Cash Reserves - (241,194) (756,598)

(209,838) (516,194) (1,038,340)

Non-Operating Result - (164,164) (443,507)

TOTAL NET TRADING UNDERTAKING 279,849 (40,390) (190,973)



2007-08


31. MAJOR TRADING UNDERTAKINGS (continued)

Esperance Aerodrome (Continued)2008 2007

Actual Actual(c) Financial Position $ $

CURRENT ASSETSCash Assets 1,646,586 1,412,602 Receivables 259,915 165,036 TOTAL CURRENT ASSETS 1,906,501 1,577,638

NON-CURRENT ASSETSProperty Plant and Equipment 1,079,548 1,111,548 Infrastructure 2,076,065 1,934,045 TOTAL NON CURRENT ASSETS 3,155,613 3,045,593

TOTAL ASSETS 5,062,114 4,623,231

CURRENT LIABILITIESPayables (Creditors and Wages Payable) 3,295 68,910 Provisions (Employee Entitlements) 26,440 9,036 TOTAL CURRENT LIABILITIES 29,735 77,946

NON CURRENT LIABILITIESProvisions (Employee Entitlements) 1,797 16,810 TOTAL NON CURRENT LIABILITIES 1,797 16,810

NET ASSETS 5,030,582 4,528,475

EQUITYAccumulated Surplus 3,053,040 2,784,966 Revaluation Reserve - Non Cash 332,051 332,051 Reserves - Cash Backed 1,645,491 1,411,458 TOTAL EQUITY 5,030,582 4,528,475



2007-08


32. CONDITIONS OVER CONTRIBUTIONSOpening Recognised Spent Restricted Opening Recognised Spent Restricted

Balance $ as Revenue $ or Used $ Reserve Balance $ as Revenue $ or Used $ Reserve1/07/2006 (1) 30/06/2007 1/07/2007 (1) (2)

Law, Order & Public SafetyHorizon Power Sponsorship - - - - - 10,000.00 (7,982.00) 2,018.00 Donations - IC Vehicle 15,379.00 20,000.00 (32,641.00) 2,738.00 2,738.00 - (2,738.00) - Grant - Co-Location Facility - 51,744.00 (850.00) 50,894.00 50,894.00 150,000.00 (178,075.00) 22,819.00 Contribution - Wild Dog Control 50,763.00 77,500.00 (40,555.00) 87,708.00 87,708.00 79,000.00 (64,213.00) 102,495.00 Safer WA Committee Subsidy - 1,200.00 (326.00) 874.00 874.00 1,200.00 (761.00) 1,313.00 CCTV System - - - - - 7,622.00 - 7,622.00 Education & WelfareGrant - Disability & Inclusion Plan - - - - - 4,182.00 (660.00) 3,522.00 Grant - Men In Sheds DVA - - - - - 29,663.00 - 29,663.00 Grant - HACC Seniors Leisure Link 4,000.00 - - 4,000.00 4,000.00 - - 4,000.00 Grant - HACC Building (Laundry) 6,494.00 - - 6,494.00 6,494.00 - (6,494.00) - Grant - HACC Storage Upgrade 4,311.00 - (265.00) 4,046.00 4,046.00 - (4,046.00) - Grant - Hearing Impaired Pilot Project 4,417.00 - - 4,417.00 4,417.00 - - 4,417.00 Grant - HACC State (Bus & UHF) - 111,657.00 (18,012.00) 93,645.00 93,645.00 - (93,645.00) - Grant - HACC Disabilities Specific Pathway - 3,000.00 - 3,000.00 3,000.00 - (3,000.00) - Grant - HACC Banner Food Specific - 450.00 - 450.00 450.00 - - 450.00 Grant - Policies & Procedures Development 3,894.00 - (1,894.00) 2,000.00 2,000.00 - (2,000.00) - Grant - HACC Training - - - - - 1,500.00 - 1,500.00 Grant - HACC Operating Minor Equipment - - - - - 6,629.00 - 6,629.00 Grant - HACC Capital - - - - - 5,728.00 - 5,728.00 Grant - VMP CPO (06/07) - 124,833.00 (99,300.00) 25,533.00 25,533.00 - (25,533.00) - Grant - VMP CPO (07/08) - - - - - 123,739.00 (115,807.00) 7,932.00 Grant - NRCP 3,720.00 102,200.00 (102,026.00) 3,894.00 3,894.00 119,669.00 (109,098.00) 14,465.00 Grant - CACP 2,804.00 251,080.00 (251,214.00) 2,670.00 2,670.00 239,663.00 (240,424.00) 1,909.00 Grant - Seniors Project - 9,300.00 - 9,300.00 9,300.00 - - 9,300.00 Community AmenitiesGrant - SCNRM Environmental Weed Strategy - - - - - 20,000.00 (10,000.00) 10,000.00

Balance carried to next page 95,782.00 752,964.00 (547,083.00) 301,663.00 301,663.00 798,595.00 (864,476.00) 235,782.00 Notes(1) Contributions which were recognised as revenues in the previous reporting periods and which were expended in the current reporting period in the manner specified by the contributor.(2) Contributions which were recognised as revenues during the reporting period and which had not yet been expended in the manner specified by the contributor.

2007 2008



2007-08


32. CONDITIONS OVER CONTRIBUTIONS (Continued)Opening Recognised Spent Restricted Opening Recognised Spent Restricted

Balance $ as Revenue $ or Used $ Reserve Balance $ as Revenue $ or Used $ Reserve1/07/2006 (1) 30/06/2007 1/07/2007 (1) (2)

Balance from previous page 95,782.00 752,964.00 (547,083.00) 301,663.00 301,663.00 798,595.00 (864,476.00) 235,782.00 Recreation & CultureGrant - Salmon Gums Hall - 25,000.00 - 25,000.00 25,000.00 - (25,000.00) - Grant - Coastwest Blue Haven - 16,650.00 (2,400.00) 14,250.00 14,250.00 - (11,405.00) 2,845.00 Grant - Coastwest Salmon Beach - 14,318.00 (11,080.00) 3,238.00 3,238.00 - (3,238.00) - Grant - Filter - ESWS 37,301.00 - - 37,301.00 37,301.00 - (37,301.00) - Grant - WALGA Physical Activity - - - - - 25,000.00 (5,000.00) 20,000.00 Grant - National Science Week - Library - - - - - 818.00 - 818.00 TransportGrant - Roads to Recovery 1,328,304.00 1,115,218.00 (1,366,255.00) 1,077,267.00 1,077,267.00 1,203,299.00 (1,597,388.00) 683,178.00 Contribution - Dead Pine Reward (Smallwood) - 350.00 - 350.00 350.00 - (350.00) - Contribution to works - R Sharpe - - - - - 15,000.00 - 15,000.00 Grant - MRWA (Fisheries Road) 2 - 120,103.00 - 120,103.00 120,103.00 - (120,103.00) - Grant - MRWA (Cape Le Grand) - 40,000.00 - 40,000.00 40,000.00 - (40,000.00) - Grant - MRWA (Lake King Cascade) - 267,903.00 (260,975.00) 6,928.00 6,928.00 - (6,928.00) - Grant - Blackspot Funding - 30,287.00 - 30,287.00 30,287.00 - (30,287.00) - Grant - FARS (Cascade Bridge 4871) - - - - - 34,000.00 - 34,000.00 Light Vehicle purchase - - - - - 29,545.00 - 29,545.00 Economic ServicesGrant - Dept Ag - Fox baiting program - - - - - 12,000.00 (12,000.00) - Grant/Contribution - Gateway Entry Signs - 42,000.00 - 42,000.00 42,000.00 22,000.00 (64,000.00) - Contribution - Shire Caravan Park Lease - - - - - 117,669.00 - 117,669.00

1,461,387.00 2,424,793.00 (2,187,793.00) 1,698,387.00 1,698,387.00 2,257,926.00 (2,817,476.00) 1,138,837.00 Notes (3)(1) Contributions which were recognised as revenues in the previous reporting periods and which were expended in the current reporting period in the manner specified by the contributor.(2) Contributions which were recognised as revenues during the reporting period and which had not yet been expended in the manner specified by the contributor.(3) $1,138,837 is included in Cash Reserve at Note 3.

2007 2008



2007-08


33. FINANCIAL RISK MANAGEMENT

Carrying Value Fair Value2008 2007 2008 2007

$ $ $ $Financial AssetsCash and cash equivalents 6,746,191 7,281,850 6,746,191 7,281,850Receivables 2,722,037 3,748,007 2,722,037 3,748,007

9,468,228 11,029,857 9,468,228 11,029,857

Financial LiabilitiesPayables 1,595,451 1,126,295 1,595,451 1,126,295Borrowings 1,140,547 2,979,743 1,070,364 2,884,164

2,735,998 4,106,038 2,665,815 4,010,459



2007-08

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 – estimated future cash flows discounted by the current market interest rates applicable to assets and liabilities with similar risk profiles.


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

30-Jun-08 30-Jun-07$ $

Impact of a 1% (¹) movement in interest rates on cashand investments:

- Equity 108,695 90,829 - Income Statement 108,695 90,829

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. An Investment Report is provided to Council on a monthly basis setting out the make-up and performance of the portfolio.

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.

Notes:

(¹) Sensitivity percentages based on management’s expectation of future possible market movements. Recent market volatility has seen large market movements for certain types of investments.



2007-08


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

30-Jun-08 30-Jun-07

Percentage of Rates and Annual Charges

- Current 0.00% 0.00% - Overdue 100.00% 100.00%

Percentage of Other Receivables

- Current 62.14% 60.75% - Overdue 37.86% 39.25%

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.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.

There are no material receivables that have been subject to a re-negotiation of repayment terms.

The profile of the Council’s credit risk at balance date was:



2007-08


33. FINANCIAL RISK MANAGEMENT (Continued)(c) Payables

Borrowings

Due Due Due Total Caryingwithin between after contractual values1 year 1 & 5 years 5 years cash flows

$ $ $ $ $2008

Payables 1,595,451 - - 1,595,451 1,595,451Borrowings 657,751 336,421 393,211 1,387,383 1,140,547

2,253,202 336,421 393,211 2,982,834 2,735,998

2007

Payables 1,126,295 - - 1,126,295 1,126,295Borrowings 2,543,238 390,264 458,519 3,392,021 2,979,743

3,669,533 390,264 458,519 4,518,316 4,106,038



2007-08

Payables and borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due. Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required.

The contractual undiscounted cash flows of Council’s Payables and Borrowings are set out in the Liquidity Sensitivity Table below:


33. FINANCIAL RISK MANAGEMENT (Continued)

(c) Borrowings (Continued)

The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk: WeightedAverageEffective

<1 year >1<2 years >2<3 years >3<4 years >4<5 years >5 years Total Interest Rate$ $ $ $ $ $ $ %

Year Ended 30 June 2008

Borrowings

Fixed RateDebentures (533,116) (21,198) (35,372) (42,123) - (508,739) (1,140,548) 7.16%Weighted Average Effective Interest Rate 7.75% 7.45% 7.50% 6.64% 6.47%

Year Ended 30 June 2007

Borrowings

Fixed RateDebentures (2,286,453) (20,639) (31,959) (47,392) (51,054) (542,246) (2,979,743) 6.65%Weighted Average Effective Interest Rate 6.67% 5.76% 7.45% 7.48% 6.64% 6.47%

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect funding costs. Council manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation.



2007-08


34 COMPARATIVE FIGURES

The 2007 comparative figures were changed for the following reasons:

(a) Recognition of the Esperance Port Authority's 50% ownership of the Shark Lake Industrial Park Development under joint venture accounting requirements.

This affected the 2007 comparatives as follows:By From To$ $ $

INCOME STATEMENT BY NATURE OR TYPE:

Increased Materials & Contracts Expenses (988,035) (4,170,422) (5,158,457) Increased Total Expenses (988,035) (22,166,081) (23,154,116) Increased Contributions, Reimbursements and

Donations - Non Operating 988,035 263,928 1,251,963 Increased Total Non Operating Revenue 988,035 3,439,760 4,427,795

INCOME STATEMENT BY PROGRAM:

Increased Other Property and Services Revenue 988,035 1,001,131 1,989,166 Increased Revenues from Ordinary Activities 988,035 24,262,780 25,250,815 Increased Other Property and Services Expenses (988,035) (865,822) (1,853,857) Increased Total Expenses from Ordinary Activities (988,035) (22,185,525) (23,173,560)

BALANCE SHEET:

Increased Current Assets -Trade and Other Receivables 988,035 2,115,906 3,103,941 Decreased Current Assets - Inventories (1,329,967) 2,509,925 1,179,958 Decreased Total Current Assets (341,932) 11,907,681 11,565,749 Increased Non-Current Assets - Inventories 341,932 922,584 1,264,516 Increased Total Non-Current Assets 341,932 224,585,020 224,926,952

CASHFLOW STATEMENT:

Increased Payments - Materials and Contracts (988,035) (4,057,080) (5,045,115) Increased Total Payments (988,035) (15,862,041) (16,850,076) Decreased Net Cash Provded By (Used In)

Operating Activities (988,035) 5,527,478 4,539,443 Decreased Payments for Development of Land

Held for Re-sale 988,035 (1,997,121) (1,009,086) Increased Net Cash Provided By (Used In)

Investing Activities 988,035 (6,434,946) (5,446,911)

RATE SETTING STATEMENT:

Increased Revenue - Other Property and Services 988,035 1,001,131 1,989,166 Increased Total Revenues 988,035 16,146,198 17,134,233 Increased Expense - Other Property and Services (988,035) (929,110) (1,917,145) Increased Total Expenses (988,035) (22,281,782) (23,269,817) Decreased Capital Expenditure - Development of Land

Held for Resale 988,035 (1,997,121) (1,009,086) Increased Estimated Surplus/(Deficit) June 30 C/Fwd 988,035 1,163,514 2,151,549



2007-08


34 COMPARATIVE FIGURES (Continued)By From To$ $ $

Note 4 TRADE AND OTHER RECEIVABLES

Increase Current - General Receivables 988,035 1,735,214 2,723,249 Increase Total Current Trade and Other Receivables 988,035 2,115,906 3,103,941

Note 5 INVENTORIES

Decreased Current - Land held for Re-sale (1,329,967) 2,269,183 939,216 Decreased Total Current Inventories (1,329,967) 2,509,925 1,179,958 Increased Non-Current - Land Held for Re-sale 341,932 922,584 1,264,516 Increased Total Non-Current Inventories 341,932 922,584 1,264,516

Note 13 NOTES TO THE CASHFLOW STATEMENT

Increased (Increase)/Decrease in Receivables (988,035) (609,770) (1,597,805) Decreased Net Cash from Operating Activities (988,035) 5,527,478 4,539,443

Note 18 FINANCIAL RATIOS

Current Ratio 0.09 1.33 1.37



2007-08
