SHIRE OF CARNARVON ANNUAL REPORT › files › assets › public › ...The Shire of Carnarvon is taking a lead role in progressing aged care in the Carnarvon townsite and have allocated

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SHIRE OF CARNARVON

ANNUAL REPORT 2012/2013

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Mission Statement

Through strategic partnerships and effective leadership we will ensure the Shire of Carnarvon is –

Friendly, vibrant, prosperous and attractive to residents, businesses and visitors;

A major tourist destination; A place where different communities live in harmony enjoying excellent

lifestyles; Recognised for achieving environmentally sustainable development; Well positioned to achieve economic success based on our location,

infrastructure, water resources and business opportunities; and The growth hub of the Gascoyne Region.

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SHIRE PRESIDENT’S MESSAGE .............................................................................................................................................................. 6 Council Members........................................................................................................................................................................................... 9 Council Meeting Attendance ....................................................................................................................................................................... 10 Management Structure ............................................................................................................................................................................... 11 ORGANISATIONAL CHART .................................................................................................................................................................. 12 GOVERNANCE Flood Mitigation .......................................................................................................................................................................................... 15 Royalties for Regions ................................................................................................................................................................................... 16 Robinson Street/Town Beach Upgrades .................................................................................................................................................. 16 Fascine Development Stage 5 .................................................................................................................................................................. 16 Library/Art Gallery ................................................................................................................................................................................... 17 Other Projects .......................................................................................................................................................................................... 17 Gascoyne Regional Collaborative Group/Alliance .................................................................................................................................... 17 Staff .......................................................................................................................................................................................................... 18 CORPORATE & COMMUNITY SERVICES Portfolio ....................................................................................................................................................................................................... 21 Rates ............................................................................................................................................................................................................ 21 Reserves ...................................................................................................................................................................................................... 21 Loan Liability ................................................................................................................................................................................................ 22 Rates Income Comparison with Debt Service ............................................................................................................................................. 22 Human Resources ........................................................................................................................................................................................ 22 Information & Communication Technology ................................................................................................................................................ 23 General ........................................................................................................................................................................................................ 23 Payment to Employees ................................................................................................................................................................................ 23 Community Development Community Growth Funds .......................................................................................................................................................................... 23 Junior Sports Development Funds ............................................................................................................................................................... 24 Events .......................................................................................................................................................................................................... 24 Youth Outreach Service ............................................................................................................................................................................... 25 Sport and Recreation ................................................................................................................................................................................... 25 Library .......................................................................................................................................................................................................... 25 Library Statistics .......................................................................................................................................................................................... 26 INFRASTRUCTURE SERVICES Operations ................................................................................................................................................................................................... 29 Strategic /Administration ............................................................................................................................................................................ 29 Major Events/ Projects ................................................................................................................................................................................ 30 Fascine Wall Maintenance ....................................................................................................................................................................... 30 Robinson Street Revitalisation ................................................................................................................................................................. 30 Integrated Water Supply .......................................................................................................................................................................... 30 Pelican Point Road Construction .............................................................................................................................................................. 30 Cemetery Upgrade ................................................................................................................................................................................... 30 Aquatic Centre Carpark ............................................................................................................................................................................ 30 Festival Grounds Carpark .......................................................................................................................................................................... 30 Olivia Terrace Calming and Boulevard Carpark Redesign ......................................................................................................................... 30 Van Dongen Park ...................................................................................................................................................................................... 30 Town Beach Playground ........................................................................................................................................................................... 31 Footpaths .................................................................................................................................................................................................. 31

INDEX

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Road Projects 2012/2013 ........................................................................................................................................... .......................... 31 Infrastructure Maintenance .................................................................................................................................................................. 32 Roads Infrastructure .......................................................................................................................................................................... 32 Parks Infrastructure ........................................................................................................................................................................... 32 Airport Infrastructure......................................................................................................................................................................... 32 REGULATORY SERVICES Emergency Services ............................................................................................................................................................................... 35 Ranger Services ..................................................................................................................................................................................... 35 DEVELOPMENT SERVICES Environmental Health Services .................................................................................................................................................... 39 Food Premises ....................................................................................................................................................................................... 39 Liquid Waste Disposal ............................................................................................................................................................................ 39 Waters ................................................................................................................................................................................................... 40 Caravans and Camping .......................................................................................................................................................................... 40 Environmental Health Staff ................................................................................................................................................................... 40 Building Services .......................................................................................................................................................................... 40 Building Staff ......................................................................................................................................................................................... 40 New Building Act ................................................................................................................................................................................... 40 Building Construction Applications Summary ....................................................................................................................................... 41 Land Use & Development OTC Facility ............................................................................................................................................................................................ 43 Town Planning Scheme Review ............................................................................................................................................................. 43 Carnarvon Airport Planning ................................................................................................................................................................... 43 Coral Bay Planning ................................................................................................................................................................................. 43 East Carnarvon/Kingsford Planning ....................................................................................................................................................... 43 Babbage/Whitlock Island Planning ........................................................................................................................................................ 43 Carnarvon Airport Planning ................................................................................................................................................................... 44 Review of Municipal Heritage Inventory ............................................................................................................................................... 44 Formulation of Local Planning Policies .................................................................................................................................................. 44 Statutory Planning ................................................................................................................................................................................. 44 Economic Development, Entertainment & Tourism Report Visitor Centre ......................................................................................................................................................................................... 44 Civic Centre ............................................................................................................................................................................................ 45 STATUTORY REPORTS Plan for the Future 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Disability Access & Inclusion Plan .......................................................................................................................................................... 47

Record Keeping Plan .............................................................................................................................................................................. 48

Public Interest Disclosure ...................................................................................................................................................................... 48

Freedom of Information ........................................................................................................................................................................ 49

National Competition Policy .................................................................................................................................................................. 49

Register of Minor Complaints ................................................................................................................................................................ 49

Corporate Plan ....................................................................................................................................................................................... 50

Workforce Plan ..................................................................................................................................................................................... 50

FINANCIAL REPORT ........................................................................................ ............................ .............................................. 51

INDEX

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Shire President’s Message

It is with pleasure that I provide my inaugural report as President of the Shire of Carnarvon and wish to highlight the following – Robinson Street Revitalisation The core work of our recent main street revitalisation project has been achieved, meeting its overall objective of becoming a more family and visitor friendly environment. With the introduction of more alfresco dining options and an increase in street seating, opportunities to spend time with friends and family catching up in town and enjoying our fabulous climate have been enhanced. Since the addition of extra seating it has been pleasing to see an increase in local residents spending more time out and about in the main street area. One of the more noticeable changes to our streetscape is the user friendly seamless pedestrian pathways that were designed to allow more street front space for cafes and shops. These pathways have been made flush with the roads to enable those with mobility issues easier and smoother transition from road to footpath. The overall look of our revitalised main street area has been done to replicate the local region. The mixed colours and layout of the pathways imitate an aerial view of our wonderful town. Carnarvon Airport Council has agreed to undertake a review of all proposed and existing airport locations along with a study into development opportunities over the existing airport land in the event the airport is relocated, within the existing airport boundaries. Council believe it is imperative we listen to the community to ensure the airport location is where they believe is appropriate and I believe we can achieve this as well as expanding and improving the airport facilities to accommodate existing and future development for the Carnarvon community. Community sentiments as well as technical expertise are reflected in the Draft Airport Structure Plan, which proposes solutions to the immediate airport needs of Carnarvon, as well as medium- to long term solutions including the potential relocation of the airport within the airport grounds and the subsequent use of the land once it becomes available in the future. A significant release of residential, community and industrial land could be achieved without a detrimental effect on the airport needs of Carnarvon. Fascine Stage 5 On visiting the Fascine and taking a walk along the newly constructed footpath, Carnarvon can be proud of the work that has been carried out to bring this beautiful icon back to the forefront as one of Carnarvon’s main attractions – as the saying goes, ‘where the desert meets the sea’. The Carnarvon Fascine Revitalisation Stage 5 Project was a 7 million dollar project to improve and enhance the Fascine area as an important and vibrant part of the community. The contract works were carried out by In-Situ Construction and Maintenance with the works being completed on schedule.

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Funded by Royalties for Regions and administrated by Department of Regional Development and Lands, this project followed on from the Stage 4 Robinson Street/Town Beach redevelopment. The work involved the removal of the existing wall from the Fascine Robinson Street round-about through to Baxter Park and replacing it with sheet piling. This will protect the town against powerful weather conditions and storm surge. The existing foot path was in bad repair and has been replaced with a 4 metre wide foot path adjacent to the new wall. Aged Care The Shire of Carnarvon is taking a lead role in progressing aged care in the Carnarvon townsite and have allocated significant internal resources towards this important facility. Many in the community will vividly remember the several other attempts made to establish an aged care facility in Carnarvon only to have this not come to fruition for many and various reasons. This project will remain a high priority for the Shire of Carnarvon and we will continue to place the community in the best possible position to establish this important facility. Flood Mitigation Following the 2010 floods the State and Federal Governments provided $60 million for the design and construction of a levee system to mitigate against the very high flood waters that were experienced in 2010. The funding was provided by the State and Federal Governments as follows; State – Royalties for Regions contributed $45 million through the Initiatives of Water & Natural Resource Management, Gascoyne Food Bowl ($20M) and Gascoyne Revitalisation Plan ($25M) and the Commonwealth contributed – $15 million through Regional Development Australia Fund. The works started in October 2012 and are expected to be completed on time and on budget in March 2014. The levee system consists of 6 levees to the west of Carnarvon that will act together to significantly reduce flood peaks in Carnarvon. The levees are known as Six Mile Creek, Lawson Street, Nickol Bay, South River Road, and McGlades Road levees. Work is significantly advanced on the Six Mile Creek, Lawson Street and Nickol Bay levees and works are about to commence on the South River Road levee. Coral Bay Workers Accommodation & Settlement Plan Council has been working with both the State Government and private contractors for establishment of workers accommodation at Coral Bay. The first phase of providing workers’ accommodation has been completed, and we are proposing alternative sites through our Strategic Planning processes to ensure that further phases can be developed as soon as possible.

Council have initiated an implementation of compliance across some areas in Coral Bay where buildings and accommodation breach legislation and we will work collaboratively and cooperatively with all existing land owners and residents to address these anomalies.

The Draft Coral Bay Settlement Structure Plan seeks to identify the best possible development opportunities and land use management systems over the next 25 years to ensure Coral Bay’s ongoing status as a regional tourism node, while protecting the treasured Ningaloo Reef environment that is its greatest asset. Library/Art Gallery On the 16

th August 2013, the Shire took possession of the new Carnarvon Regional Library and Art Gallery. Thanks to

funding received from the State Governments Royalties for Regions program after 40 years the Library will relocate to a modern and contemporary venue. This venue will provide the community with new and expanded resources and access to fresh and vibrant community spaces.

The new Shire Art Gallery will provide a new opportunity for community to exhibit its local talents, offer community space for creative initiatives and encourage traveling exhibitions to the region.

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Junior Council A big welcome to our fellow Junior Council and its Members. Junior Council was re-established early on in the year with the program being run by the Shire of Carnarvon with the local schools, St Mary’s Catholic School, Carnarvon Christian School and the Carnarvon Community College (Egan and Marmion St Campus’s). Each school nominated several Year 7 students to participate in the 10 month program with Junior Council meeting on a monthly basis in Council Chambers. This year’s Junior Council consists of 21 Junior Councillors from across the three participating schools.

The program aims to educate and inform young people about the three tiers of government in Australia, with a particular emphasis on local government. During the 10 months, participants have learnt about government decision making, meeting procedures, the purpose and services of local government, voting and election procedures, and have explored issues which affect young people in Carnarvon.

The Shire of Carnarvon Council Members have had the opportunity to meet with Junior Council to discuss issues that they feel have an impact on the youth of Carnarvon and the Council looks forward to working with the Junior Council in the 2014 year. Finally I wish to acknowledge the support of my fellow Councillors, the Shire Staff for the amiable and proactive working relationship we have developed to make the Shire of Carnarvon a more attractive place to visit and live. Karl Brandenburg SHIRE PRESIDENT

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Cr Karl Brandenburg - SHIRE PRESIDENT

Cr Neil Ganzer - COUNCILLOR TOWN WARD

Cr Julee Nelson - COUNCILLOR TOWN WARD

Cr Naomi McMahon - COUNCILLOR TOWN WARD

Cr Max March - COUNCILLOR TOWN WARD

Cr Melissa Gibbings - COUNCILLOR PLANTATION WARD

Councillor - GASCOYNE/MINILYA WARD

(VACANT)

Cr Graham Murphy - CORAL BAY WARD

COUNCIL MEMBERS

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SUMMARY OF ATTENDANCES COUNCIL MEETINGS

1 JULY 2012 TO 30 JUNE 2013

MEMBER

MTGS HELD

DURING OFFICE

ATTENDANCE

%

ATTENDED

LOA BRANDENBURG, K COUNCILLOR – TOWN WARD

13

13

0

100

GANZER, N COUNCILLOR – TOWN WARD

13

13

0

100

MCMAHON, N COUNCILLOR – TOWN WARD

13

13

0

100

NELSON, J COUNCILLOR – TOWN WARD

13

13

0

100

MURPHY, G COUNCILLOR – CORAL BAY WARD

13

5

0

38

GIBBINGS, M COUNCILLOR – PLANTATION WARD

13

12

0

92

MARCH, M COUNCILLOR – TOWN WARD (ELECTED MARCH 2013)

6

6

0

100

HOPKINSON, W COUNCILLOR – GASC/MINILYA WARD (RESIGNED FROM COUNCIL MAY 2013)

10

9

0

90

SMITH, E COUNCILLOR – TOWN WARD (RESIGNED FROM COUNCIL NOVEMBER 2012)

6

6

0

100

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GOVERNANCE Ian D'Arcy (Chief Executive Officer) Responsible for - - Coordination of Council activities and functions; - Coordination of management functions; - Liaison with Government and Ministerial Offices - Corporate and Strategic Planning; - Business/Economic Development; - Statutory Compliance; - Executive support to Council - Project Management

CORPORATE/COMMUNITY SERVICES Charlie Brown (Director, Corporate & Community Services) Responsible for - - Financial Administration; - Human Resources and Occ Health & Safety; - IT - Legal and Corporate Compliance; - Library & Information Services; Art & Culture; - Community Development;

REGULATORY SERVICES Dave Hadden (Director, Regulatory Services) Responsible for - - Community safety, law, order and public safety; - Emergency Services, Bush Fire Brigade; - Building Operations - Health - Waste Management

INFRASTRUCTURE SERVICES David Klye (Director, Infrastructure Services) Responsible for - - Design - Operations - Parks & Reserves - Specialist Services - Aerodrome - Sport & Recreation

DEVELOPMENT SERVICES Vacant (Director, Development Services) Responsible for - - Economic Development; - Marketing/PR & Tourism; - Statutory/Strategic Development; - Heritage - Project Management

COUNCIL’S MANAGEMENT STRUCTURE

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13

GO

VER

NA

NC

E

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Ian D’Arcy

Chief Executive Officer

Dannielle Hill

Executive Officer

Kelly D’Arcy Manager, Governance

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It is with much pleasure that I provide my inaugural Annual Report as Chief Executive Officer with the Shire of Carnarvon. 2012/2013 saw the completion, commencement and continuation of a number of major projects within the Shire of Carnarvon, which are addressing many years of neglect of the infrastructure depreciation backlog in this district. As a result of these projects the Shire staff and resources have continued to be stretched as we attempt to implement a number of significant projects whilst still dealing with the day-to-day core business of the Shire. FLOOD MITIGATION The Shire of Carnarvon continued to allocate an enormous amount of time, effort and resources into resolving the many and varied complex issues associated with the implementation of both the completion of Stage 1 and commencement of Stage 2 Carnarvon Flood Mitigation Works. Since the previous year’s Annual Report I am pleased to report works on the completion Flood Mitigation Stage 1 and commencement of Flood Mitigation (Stage2) works are underway. The appointment of Brown’s Range Alliance as the prime contractor was a major milestone in the Flood Mitigation Project, with on-the-ground works commencing in November 2012, with an anticipated completion date being March 2014. Council has been steadfast in its approach on areas such as –

State Government being the asset owners, which the State has agreed to;

State Government accepting asset liability and responsibility, which the State has agreed to;

Ongoing, generational maintenance funds being quarantined for the upkeep and maintenance of the flood mitigation system (both levees and drainage) after completion of the works;

Full completion of all four levee, not a partial completion i.e.

Lawson Street Levee;

Nichol Bay Levee;

South River Road Levee; and

McGlades Levee Council agreed to reallocate $25m, which was notionally allocated by the Gascoyne Revitalisation Steering Committee, Royalties for Regions Program from other significantly important infrastructure projects associated directly with the Shire of Carnarvon to the Flood Mitigation (Stage 2) Works. This reallocation was on the basis of flood mitigation being imperative to the economic viability and sustainability of the Carnarvon community. Council also worked very closely and collaboratively with other State Government Departments, (i.e. Regional Development and Lands, Main Roads WA, Gascoyne Development Commission and Department of Water) to produce a very professional and robust grant application under the Commonwealth Government Regional Development Australia

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Fund, seeking $15m towards the Carnarvon Flood Mitigation Stage 2 Works. It was with great pleasure Council received advice from the Commonwealth Government that the $15m grant application was successful. This $15m is the largest single amount allocated by the Commonwealth Government to any project under the Regional Development Australia Fund to date. Such an achievement is something all involved in the development of this application should be extremely proud of. ROYALTIES FOR REGIONS PROJECTS Robinson Street/Town Beach Upgrades The Robinson Street/Town Beach Upgrades Project was completed in 2012/2013 as funds were exhausted. It is well known this project had its difficulties, which Council and staff worked diligently to address and the focus was to re-open the Robinson Street construction area as soon as possible. Irrespective of some of the derogatory comments by a minority of the community the end result of the Robinson Street/Town Beach Upgrades Project is something the Council and community should be proud of as it has given the whole precinct a much needed face lift. Council and staff have always maintained and understood, there are a number of issues which still need to be addressed (particularly along Robinson Street) and have been diligently working to strategies and funding sources to continue the upgrade of this area. It must always be understood that Council reallocated a significant amount of its notional allocation for the Robinson Street/Town Beach/Fascine Upgrade project funding away from this project to the Carnarvon Flood Mitigation (Stage 2) project. This was considered the most appropriate course of action. However, this was always going to result in insufficient funds being left to complete the Robinson Street/Town Beach/Fascine Upgrade to the level all desired. Council and staff continue to work with the State Government to seek additional funding to allow the whole of the Robinson Street/Town Beach/Fascine Upgrade project to be completed. Fascine Development (Stage 5) The continuation on from the Robinson Street/Town Beach project is the Fascine Development Stage 5 project, which has sheet piling continuing through to Baxter Park and minor hard landscaping along the4 Fascine. Major upgrades to the infrastructure (e.g. jetties, plazas, footpaths) along the full length of the Fascine area could not be included into the Fascine (Stage 5) project at the time the works where allocated to the successful tender due to insufficient funds being available at the time. However, Council and staff have been diligently working with the State Government to acquire funding to ensure this project is fully completed and will be the jewel in the crown of the Gascoyne. The Shire of Carnarvon inherited the Fascine and associated infrastructure in a dilapidated state approximately 20 years ago and has been unable to maintain this particular asset to the standard we all desire since this time. However, with the

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introduction of the Royalties for Regions Program Council identified the Fascine as one of its highest priority to bring this asset up to a more satisfactory state. Library/Art Gallery As reported last year, the Carnarvon Library/Art Gallery Project has been on the planning board for many a year has experienced delays during 2011/2012, for many and varied reasons; however, it is with much pleasure I can report building renovation commenced in 2012/2013 and anticipated to be completed in October 2013. This is a facility the Carnarvon community has been requesting for many years and it exciting to see a project, with all the concepts and idea, eventually become a reality. This will be an icon for Carnarvon and the Gascoyne and now has the ability to attract the highest quality art and displays to the Gascoyne. I wish to formally congratulate all those involved in the initial idea, through to concepts, plans, funding application, tenders, contractual appointments, contract management, and eventually opening of the state of the art facility. Well done and congratulations to all those involved. OTHER PROJECTS In addition to the aforementioned major projects, the Shire of Carnarvon is also involved in many other important projects throughout this community, eg –

Upgrades to the Carnarvon Cemetery;

Waste Management (both Browns Range and Coral Bay facility upgrades);

Aquatic Centre Carpark Upgrade;

Festival Ground Carpark and Facility Upgrade;

Pelican Point Road Restoration/Upgrade;

Various Parkland Improvements (e.g. Baxter Park Water Playground);

Integrated Water Supply;

Carnarvon Airport Upgrades (i.e. tarmac repairs);

Coral Bay Settlement Plan;

Blowholes Camping and Recreation Reserve Upgrades;

Pelican Point Ablutions;

Carnarvon Airport Precinct Planning;

Asset Management Plan;

Aged Care Concept Plan;

Financial Strategic Plan; GASCOYNE REGIONAL ALLIANCE (GRA) During 2012/2013 the Gascoyne Regional Collaborative Group (GRCG) evolved into the Gascoyne Regional Alliance (GRA) and although there is much more work to be undertaken to recognise regional service delivery alliances, I personally believe such an approach for service delivery to our constituents is imperative to ensure costs are maintained and delivery of services are provided at the highest possible level. The GRA has already identified two areas to introduce service delivery alliance across the three shire i.e.

Information & Communication Technology; and

Asset Management

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The GRA also obtain seed funding from the Department of Local Government to assist with the establishment of the GRA and development of the aforementioned Service Delivery Units. I look forward to the ongoing, amiable, and positive relationship the three Local Governments have forged and hope in the very near future regional service deliveries are in place and operating efficiently and effectively in the near future. STAFF I wish to congratulate staff employed with the Shire of Carnarvon for their commitment, dedication and willingness to go the extra yard, which many times go un-noticed and unrecognised. However, I can assure it is does not go unrecognised by me and without such dedication and commitment, the many and varied services we are required to provide would not occur. In closing, I wish to reiterate my sincere appreciation to all Elected Members (both past and present) for continuing to give me the opportunity to improve the organisational structure and operations of the Shire of Carnarvon and I thank all staff for their tolerance and understanding during these periods of change.

Ian D’Arcy CHIEF EXECUTIVE OFFICER

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CO

RP

OR

ATE

&

CO

MM

UN

ITY

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Charlie Brown

Director, Corporate & Community Services

CORPORATE SERVICES Sa Toomalatai

Manager, Finance Sandra Wood

HR/Payroll Officer Stacey Martyn

Accounts Clerk – Creditors Melanie Hammerquist

Rates Officer Rebekah Skender Records Officer

Jordan Day Debtors/Customer Services Officer

COMMUNITY SERVICES

Tracey McNee Manager, Community Development

Vivienne Tonga Community Development Officer

Liam Ryder Trainee – Community Services

Glen Waru Community Youth Worker

LIBRARY SERVICES

Gillian Terry Regional Librarian Minh Henderson

Brian Chilby Children Services Library Officer

Joss Anderson Rachel Williams

Library Assistant

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Portfolio

Finance

Human Resources/OSH

Information Technology

Council Support

Legal

Corporate Compliance Rates Rate income increases for the previous four years has been as follows:

Total

Increase Average

2009 2010 2011 2012 2013 Over Annual

5 years Growth

over past

5 Years

2,860,201 3,156,715 3,334,032 3,545,386 3,795,200 934,999 7.34%

Differential Rates were again used in the Unimproved Valuation areas of the Shire for Mining, Pastoral and Intensive Horticulture. These rates were adopted by Council, advertised for public comment and endorsed by the Minister as required under the Local Government Act and Regulations. Specified Area Rates were again set for Fruit Fly, Coral Bay Refuse Site and Fascine Maintenance. The purposes of these Specified Area Rates are detailed in the Financial Report. Reserves The cash backed reserves remain high due predominantly to the “Unspent Grants and Contributions Reserve”, which is used to remove all grant and contribution funds out of the Shire’s Municipal Fund. In previous years these funds have been retained in the Municipal Funds and though identified as restricted assets, have resulted in an inflated surplus position in the Shire’s Municipal Funds at year end. The “Unspent Grants and Contributions Reserve”, makes up approximately 93% of the total cash backed reserve funds held by Council at the 30 June 2013. Therefore, there are limited cash backed reserves which have been derived from Council’s own resources for areas such as:

Leave Accruals

Plant Replacement

Waste Disposal

Staff Housing

IT Replacement

Airport

Fascine Dredging/Wall Maintenance

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Loan Liability The Shire’s loan liability at the 30 June 2013 was $557,033. Below is a history of the Shires Loan Liability position at the end of each financial year since 2002:

Year Ending Loan Principle Outstanding

30/06/2013 $462,958

30/06/2012 $557,033

30/06/2011 $645,181

30/06/2010 $622,423

30/06/2009 $534,159

30/06/2008 $697,926

30/06/2007 $337,692

30/06/2006 $655,905

30/06/2005 $1,070,927

30/06/2004 $1,503,623

30/06/2003 $1,822,552

30/06/2002 $2,062,719

Rates Income comparison with Debt Service

Human Resources The attracting and more importantly, retention of staff, continues to be an issue at the Shire of Carnarvon as it is with most Local Governments in WA. The basic Human Resource (HR) requirements are beginning to be addressed in a more structured manner, specifically the Risk Management (RM) and Occupational Safety & Health (OSH) issues, which are now being catered for by the

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Principal Outstanding

Revenue

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establishment of a service delivery alliance with Local Government Insurance Services in addition to Council’s in house resources. This alliance, along with training/skilling of existing staff, will see a vast improvement in the RM & OSH aspects of the Shire over the forthcoming years. Information and Communication Technology Information and Communication Technology (ICT) continues to be a significant operational resource demand on the Shire. With this in mind, the Shire sought assistance from experts in both the IT and Communications field to develop some rationale behind the on-going and future ICT requirements for the organisation. An ICT equipment replacement plan is now in place which has moved the Shire away from the “break and fix” practices of the past. General The Corporate Services Department is functioning well however, due to limited resources and the ever-increasing compliance demands placed upon Local Governments, there has been inadequate time and resources devoted to focussing on the major issues affecting all Local Government such as financial sustainability, asset management, etc. These issues are now being addressed as part of the Local Government Structural Reform process, which commenced in 2010/2011 and will hopefully be completed within the next three financial years. Payment to Employees Set out below in bands of $10,000 is the number of employees of the Council entitled to an annual salary of $100,000 or more.

Salary Range

2013 2012

100,000 110,000 110,000 120,000

4 4

120,000 130,000 130,000 140,000

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COMMUNITY DEVELOPMENT The following portfolios are the responsibility of the Community Development Department

Art and Culture

Sport and Recreation

Community Engagement

Community Funding

Community Events Community Growth Funds Commitment from Council to support new projects throughout the community has resulted in just over $131 712 being distributed to community groups, services and clubs. Just over $60 000 of subsidized rates are provided to not for profit community groups and organizations, as well as funding to varied projects including:

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Junior Sports Development Funds Clubs have the opportunity to apply for funds to assist with costs associated with attending competitions and training clinics for juniors. The funds assist with transport and accommodation. The following Carnarvon Clubs were assisted throughout the year:

Gymnastics

Junior cricket

These grants will continue to offer services, clubs and organizations throughout Carnarvon the opportunity to develop new initiatives and to support their continued development. Events Council and the Shire have worked collaboratively with agencies, and the community to deliver quality community events. These events have been successful in promoting Carnarvon and bringing together the community to celebrate our region and its diversity. We have assisted with finances and staff to ensure the events were a success. Our involvement has included:

Carnarvon TropiCOOL Festival

The Great Bike Hike

Paralympian Katrina Porter’s visit

Inclusion WA – School holiday programs

Seniors Week

Royal Show Display- Gascoyne District Display

Australia Day Celebrations

National Youth Week

Disabilities Week

Gascoyne Off Road Racing Club- Assistance with “Gascoyne Dash”

Carnarvon Softball Association.

Gascoyne Food Council – Long Table lunch

Chamber of Commerce

Carnarvon Bowling Club – Bowling Carnival

Gascoyne Off Road Racing Club- Assistance with

“Gascoyne Dash”

Variety Club WA- Variety WA Bash Car

Carnarvon Golf Club

Senior Citizens – Commercial Stove

PCYC- Ballet Bars

New Commercial Stove for Senior

Citizens Club

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Youth Outreach Service: Council and the Shire continued to support the Carnarvon Youth Outreach Service to ensure that young people are supported across the Shire. The service was generously funded by the Department of Child Protection and the Department of Corrections, who both have a commitment to ensuring young people at risk are supported to reduce harm and to provide opportunity to reach their full potential. Community Development Our Community Development Officer focused on ensuring that the community has been kept well informed about Shire business and

activities. The Shire newsletter Community Update was produced regularly, radio announcements ensured the community knew what was

going on, information pieces appeared regularly via the ‘What’s On’ in the local paper and a robust email network was established. Engaging with the community, supporting and assisting residents and groups work towards their aspirations and celebrate the many community assets was also a core focus for the Community Development Officer, who regularly met with the Seniors Group, Vietnamese community and worked with service clubs, sports groups and individuals on various activities. Sport and Recreation Disappointingly the Club Development Officer position was a challenge to fill during the 12/13 financial year. The Club Development program has the capacity to provide valuable support and assistance to sport and recreation Clubs in Carnarvon. In the absence of a dedicated Club Development Officer the Community Development Team worked together to ensure that clubs received any information and support they were seeking and that KidSport was delivered to its full potential. The KidSport program provides assistance to low income and disadvantaged families that allows their children to participate in sports. The programme provides funding to Clubs to assist with costs of fees, uniforms and equipment. During the 12/13 financial year over 135 applications for KidSports were approved with over $20 680 provided to ensure kids and young people could enjoy the benefits associated with being involved with a sporting club.

A positive relationship also continued with the Gascoyne Office of the Department of Sport and Recreation, ensuring a strategic approach to sport and recreation occurred across the Gascoyne region.

LIBRARY The library had another rewarding year providing a free library service to the Carnarvon community. The library has stock in excess of 19,000 items available to borrow in a variety of formats including books, DVD’s, audio books, and magazines. The library has wireless internet and provides access to computers, as well as daily newspapers and community information.

Christmas Baby Swim

2011

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Children’s Services runs weekly Story time and Baby Rhyme Time sessions as well as coordinating the Better Beginnings early literacy programme in Carnarvon. A highlight of the year was the annual Children’s Book Week Event when the library hosted Dianne Wolfer an award winning WA author.

This year’s statistics are down from previous years, partly due to the preparation for moving the library to new premises. The following statistics show the library usage for the past three years: Library Statistics

Charlie Brown DIRECTOR CORPORATE AND COMMUNITY SERVICES

2010/2011 2011/2012 2012/2013

Total Members 2717 2173 1782

Adults 2285 1798 1388

Children 432 375 394

Total No of items

borrowed

41352 37615 31802

Total No of internet &

wireless users

7935

6872

6877

Total No of people

counted

47542 42144 39167

Adult Services included author’s talks, Beginners Internet classes, a Book Club and

annual events for Adult Learners Week and Seniors Week.

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David Klye

Director, Infrastructure Services

Will Taylor Manager, Infrastructure Operations

Ross Shaw

Operations Supervisor

Darryl Ross Manager, Parks & Gardens

John Abreu

Leading Hand

Kathy Donald Operations Support Officer

YMCA

Aquatic Centre Manager

Eddie Smith Airport Supervisor

Peta Foulkes

Airport Reporting Officer

Rachel Wright Infrastructure Technical Officer

Melissa Perry

Infrastructure Support Officer

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The Directorate for Infrastructure Services carries responsibility for the following areas of Council business:

OPERATIONS

Works Department; Construction, maintenance and cleaning of roads, footpaths, and drainage throughout the Shire.

Parks & Gardens Department; Construction and maintenance of Councils sporting fields, passive parkland areas, road verges, streetscapes, street trees, cemeteries and water ways maintenance.

Projects; The construction of new, infrastructure projects not provided for within annual maintenance budget.

Fascine Management; Maintenance of tramway bridge, 1 jetty, boat ramp and dredging works

Airport; Operation and maintenance of all airport infrastructure including runways, aprons, taxi ways, grass runoff areas, security, buildings, grounds and car parks.

Aquatic Centre; Manage and maintain the swimming pool and Baxter Park Aquatic Spray Park.

STRATEGIC/ADMINISTRATION

Strategic Planning

Budget preparation and management

Management of Human resources

Asset management

Tender preparation and administration

Compliance with appropriate legislation associated with provided services

Council Policy

Council Agenda Items

Purchasing and procurement

Road programs

Roads to Recovery (R2R) funding management and acquittals

Regional Roads Group (RRG) funding management and acquittals

Funding applications

Crossover applications

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MAJOR PROJECTS 2012/2013

FASCINE WALL CONSTRUCTION Construction of the new fascine wall using sheet piling, including a new 4.0m wide foot path and a limestone storm surge seawall has commenced and at the time of writing was partially complete. The works are progressing well with a high standard of finish. The works are on time but behind budget by about $1,026,000 due to the need to add further tie-backs to the wall as a result of weaker than predicted ground conditions. The project’s contingency funds only covered some of this cost and $750,000 was covered by Council’s own funds. A completion stage is planned for the Fascine wall works that includes three Plaza areas, three jetties, irrigation reticulation and landscaping. These works are dependent on grant funding.

ROBINSON STREET REVITALISATION The re-construction of Robinson Street and Town Beach has been completed, however, Council has received complaints about some minor aspects of the new street layout. Council is preparing plans to improve pedestrian cross street access along with a few other minor changes. The finalisation of the plaza area at Town Beach including the BBQ areas, toilets, paved areas, and the grassed terraces was also completed in 2012/13. INTEGRATED WATER SUPPLY Upgrade of the integrated water supply reticulation system to Councils parks and gardens. Partial duplication of the supply line from the settling ponds to Brockman Park to increase capacity. PELICAN POINT ROAD RECONSTRUCTION The storm damage to Pelican Point Road was repaired using large sandbags to create a stable embankment between the road and the beach. CEMETERY UPGRADE The cemetery area was expanded, the vehicle tracks were re-sheeted and a new toilet block was constructed. AQUACTIC CENTRE CARPARK Kerbing was installed and the carpark was sealed FESTIVAL GROUNDS CARPARK Kerbing was installed and the carpark was sealed OLIVIA TCE TRAFFIC CALMING AND BOULEVARD CARPARK REDESIGN Speed humps and medians were installed on Olivia Tce. The kerbing layout was changed and speed humps installed in the Boulevard carpark to reduce traffic movements and speed. Footpaths were installed in the Boulevard carpark and Alexandra St.

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VAN DONGEN PARK Limestone walls were installed around central drainage sump area and garden beds. Landscaping to be completed in 2013/2014. TOWN BEACH PLAYGROUND A playground made up of 15 pieces of play equipment was installed on town beach and included swings, flying fox, climbing net and other items. Funding for the installation of softfall was received for 2013/14.

FOOTPATHS The long awaited footpath from the IGA Store to Carnarvon Caravan Park was installed; footpath maintenance throughout Town continued. Funding applied for 2012/2013 Department of Transport Cycleways Grant, was used to install a new 3m footpath from Town Beach to the Seniors Citizens building on Olivia Tce.

ROAD PROJECTS 2012/2013

The following road projects were started/completed during 2012/2013.

Quobba Gnaraloo Rd – 5km was reformed and resheeted;

Carnarvon Mullewa – 18km resealed;

Sydney II Memorial Drive - 1km of road cement stabilised and pavement overlay;

James St – Raise road and reconstruct was delayed to 2013/2014 due to a large number of truck movements in the area due to another project;

Marmion St – Construct and seal 240m at end of Marmion St;

Sandhurst Rd – Construct, install drainage and seal 300m at start of Sandhurst Rd;

Speedway Road/NWCH intersection North – project completed in consultation with MRWA who had funding to develop this intersection, completion coincided with new Truck stop;

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INFRASTRUCTURE MAINTENANCE ROADS INFRASTRUCTURE

Country road maintenance; maintenance, pot-holing and resealing to all roads, inclusive of verge mowing to roads outside Town area, annual maintenance works to roads affected by flooding.

Urban road maintenance; maintenance, pot-holing and resealing to roads within town site.

Drainage maintenance; maintenance to natural flood ways, open drains, gulley traps and sumps.

Footpath maintenance; maintenance, sweeping and replacement of minor sections of paths.

Street cleaning, includes regular sweeping of roads and car parks. PARKS MAINTENANCE Maintenance to parks infrastructure includes the maintenance to both passive and active (sporting) parks throughout the town, maintenance to road verges, garden median strips, reticulation system repair inclusive of effluent watering system and street tree maintenance. The completion of the upgrades to Robinson Street and Town Beach have improved the appearance and amenity of those areas and the town. AIRPORT INFRASTRUCTURE Council is responsible for the maintenance and effective management of the Carnarvon Airport. This includes compliance with regulations and legislation. Council employ a contractor to undertake the day to day management of the airport, however the Shire is the responsible party for airport management with respect to the Civil Aviation Safety Authority’s requirements. The runways are at the end of their service life with failing subgrades (foundations) and Council is working towards replacing the runways before they fail completely and are deemed to be unsafe for use by Regular Public Transport aircraft. Airport staff are maintaining the current strip to maintain compliance.

Services to maintain compliance of the airport include:

Maintenance of runways, taxiways and aprons;

Maintenance of aircraft parking ;

Maintenance of grass and surrounding areas to runways;

Fencing maintenance;

Garden and building maintenance ;

David Klye DIRECTOR, INFRASTRUCTURE SERVICES

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Dave Hadden

Director, Regulatory Services

Jay Gordon Louis Franks

Environmental Health Officers

Position Vacant Building Surveyor

Chris Leca

Trainee Building Surveyor

Paul Wilson Ranger Co-ordinator

Theo Brugman Luke De Sousa

Rangers

Mike Barnes Manager, Fire & Emergency

Chantelle Bush

Regulatory Support Officer

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As a result of an organisation restructure a newly formed Regulatory Services Directorate was established wherein the portfolios of Environmental Health, Building, Emergency Services and Rangers Services were transferred from the Development Services Directorate. This occurred in the second half of the 2012/2013 financial year.

EMERGENCY SERVICES The Emergency Services Department has welcomed a new CESM (Community Emergency Services Manager) to source the Gascoyne Region. Mr Mike Barnes has taken the position over from Greg Lyons who left us earlier on in the year. Mike will be sourcing the Gascoyne Region including; Denham, Sharkbay, Upper Gascoyne and Carnarvon. The CESM Program is established to mitigate risks to the community through a Memorandum of Understanding (MOU) between FESA (now DFES) and the respective Local Governments. Additionally, it includes the development of a business plan which is reviewed bi-annually. The program provides a level of administrative and operational support for volunteer Bush Fire Brigades and other volunteer emergency service units (State Emergency Service, Volunteer Fire & Rescue, Volunteer Marine Rescue & St. John Ambulance) within the Local Government area, and in some cases is shared across Local Government boundaries. This position covers Carnarvon, Shark Bay and Upper Gascoyne Shires.

RANGER SERVICES With the implementation of a new Ranger Team an emphasis on Community engagement and education is high on the agenda. Other duties include; RANGER DUTIES:

Ranger Services;

Dog/Cat Impounds;

Animal Contro;l

Abandon Vehicles;

Animal Registration;

Illegal Dumping;

Infringements;

Illegal Camping;

Parking ;

Animal Nuisance/Complaints;

The Ranger Services Team has recently employed the Services of 3 new Rangers; Team Leader Paul Wilson providing over a decade of experience within the Animal Control and Ranger Services, the team have also welcomed Luke De Sousa and Theo Brugman, with the introduction of the new Rangers Team recently, it has allowed increased Regular presence within the town.

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The new Shire Rangers team have made issues regarding strengthening community relationships, improvements in response times and sharing information with the community in regards to the Acts and Regulations and any amendments to this affect being their top priorities among others. As such the Dog Act 2011 has been amended and a new Cat Act 2011 has been created and implemented which is to be enforced as of 1

st November 2013.

As part of the implementation of our New Ranger Services team operating hours have also changed for their services you will not be able to contact the team Monday – Friday from 6am – 6pm.

Dave Hadden DIRECTOR, REGULATORY SERVICES

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Ian D’Arcy

Director, Development Services

Jay Gordon Louis Franks

Environmental Health Officers

Position Vacant Building Surveyor

LAND USE & DEVELOPMENT Marius Shepherd

Sarah Chan Planning Officers

TOURISM Sharon Williams

Manager, Carnarvon Visitor Centre

Leah Ivey Economic Tourism Support Officer

Stephanie Leca Ashleigh Goff Visitor Centre

Merome Beard

Tourism Development Officer

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ENVIRONMENTAL HEALTH SERVICES Council’s Environmental Health Service remained under the Development Services Directorate for the first 5 months of the 2012/13 financial year before the section was moved in an organisational restructure to a newly formed Regulatory Services Directorate. Notwithstanding this change, the Environmental Health Section has been successful in its delivery and monitoring on a range of programs and activities that has set out to enhance and safeguard public health and promote a safe environment for the well-being of our communities. Programs performed by Council’s Environmental Health Officers over the past year has included: Water Sampling (Potable; Recreational-Swimming Pools; Environmental; Waste Water Re-use Inspection of Accommodation, including Public Buildings

and Caravan Parks Pest Control and use of pesticides Food Premises Inspections Waste Management Licencing Regulation of Pet Meat Sales Health Promotion & Workshops Emergency Management Noise control Treatment and disposal of onsite waste water Control of Infectious Disease Control of hazardous substances eg asbestos Statutory nuisance

Food Premises: Regular inspections of food premises has also continued throughout the year with significant improvement in cleanliness and hygiene as proprietors of food businesses embraced their responsibilities pursuant to the new Food Act 2008, Food Regulations 2009 and the ANZ Food Standards Code.

Specifically, the Food Act 2008 and Food Regulations 2009 give a broad approach to the requirements for food businesses incorporating provisions for the encouragement of food businesses to comply with the legislation by a decrease of surveillance fees for compliant businesses, and an increase in the same fees for premises that register a high level of non-compliance. It should be recognised that the Environmental Health Officers have approached the requirements of compliance with the Food Act 2008 through a number of education and training workshops with business owners and community groups.

Liquid Waste Disposal: As reported in previous years the Health Department WA has approved the use of alternative treatments for the treatment and disposal of sewage and liquid waste. One of the alternative disposal methods is the use of Aerobic Treatment Units (ATU) with sub-surface drip irrigation and sprinklers for the re-use/disposal of waste water in a compliant manner. There are also guidelines for “grey water” disposal. Collectively, these new systems are proving popular for watering gardens and lawn areas, thereby reducing the water consumption from the reticulated water supply, and a related decrease in the supply cost.

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Waters: The Shire’s Health section has continued to sample and monitor local waterways to ensure compliance with required health standards. For example the Fascine and Small Boat Harbour is regularly monitored so that these recreational waters are maintained an acceptable biological standard for recreational purposes, including swimming. Caravans and Camping: Shire Health officers have continued to annually inspect caravan parks and work with owners/operators in Carnarvon and Coral Bay to ensure compliance is met with the Caravan Parking and Camping Grounds Act 1995 and associated regulations. As for remote camping locations the Shire is intending to work with owners to register and improve servicing Nature Based Camping facilities, notwithstanding it is necessary for campers in isolated situations, particularly pastoral camping areas, to provide and maintain their own basic health requirements. Environmental Health Staff: The Shire has continued to see a number of changes to staff over the past year. As mentioned, one significant change occurred in Mr David Hadden assuming the role of Director of Regulatory Services as a certified Environmental Health Officer with the view to enhancing the delivery of health services for the local community.

BUILDING SERVICES Council’s Building Section has continued to perform in the monitoring of all building activities within the Shire. While doing so, the Building Section needed to adjust to procedural change brought about by the introduction of the new Building Act 2011. Additionally, this Section was also moved part way through the year to the newly formed Directorate of Regulatory Services. The functions of the Building Section has continued to include:

Maintenance of all Council Buildings

Process and issue of Building Permits

Inspection of buildings

Asset Management

Project Management

Enforcement of non-compliant and unauthorized building works Building Staff: The Building Services Section has also benefited from the Mr David Hadden heading up the new Regulatory Services Directorate. Mr Haddon is a certified Building Surveyor with 20 plus years of expertise in Local Government. New Building Act 2011: The change in legislation with the new Building Act 2011 has increased focus on certification of buildings and practitioners and other building professionals to ensure accountability and conformity with building standards. However, notwithstanding the respective changes, introduction of the new Building Act has proven to be challenging for this Shire, as well as the building industry and most other local governments throughout Western Australia, due to a lack of accountability and confusion in its implementation by the WA Building Commission.

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Building Construction Applications Summary 2012/2013: See Over Page

3

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2012/13

SH IRE OF CARNARVON - SUMMARY OF BUILD ING CONSTRUCTION APPLICATIONS - 2011/2012

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LAND USE AND DEVELOPMENT REPORT Strategic Planning across the Shire over the past 12 months has seen a number of formal planning initiatives and documents being progressed paving the way for future development opportunities. These initiatives and plans are briefly mentioned below:

OTC Facility – The Planning Section of the Shire has stalled in progressing preparation of a draft Management Plan for the OTC facility with a focus on tourism and education due to other planning priorities as requested by Council.

Town Planning Scheme Review - Land use and development within the Shire is regulated by Town Planning Scheme No.10 – Carnarvon Town site and Environs, and District Zoning Scheme No. 11 that covers the balance of the district, including Coral Bay. Given both Schemes are scheduled for review under the Planning and Development Act, 2005. The Planning Section is in the process of a formal review culminating in the preparation of Local Planning Scheme No.13, as well as preparing a Local Planning Strategy to guide future land use change.

Coral Bay Planning – The Council in February 2012 in response to mounting pressure on Coral Bay as a premier tourist node implemented a planning study to review the Coral Bay Settlement Plan based on a vision for the next 25 years. The outcome of the planning exercise is to establish a Structure Plan that identifies and recommends change to accommodate future tourist and development pressures without detriment to the Ningaloo coastal environs. Through the year the Council considered and endorsed an outcomes report and a draft Settlement Structure Plan. It is expected the draft Plan will be advertised in August 2013.

East Carnarvon/Kingsford Planning – The Council in early 2013 resolved to review the East Carnarvon Subdivision Guide Plan that also includes the Kingsford locality. The review will identify the opportunity for infill development and land-use change in consideration of conflicts of land-use, adequate utilities and servicing, flood risk and protection of prime agricultural land.

Babbage/Whitlock Island Planning - As with the East Carnarvon planning, the Council in early 2013 commenced a planning process to prepare a new Structure Plan for Babbage and Whitlock Islands. This will see a plan being prepared to guide the future development of this area in consideration of environmental, heritage and cultural, and tourism as well as some residential opportunity.

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Carnarvon Airport Planning – The Council in October 2011 initiated a planning exercise to review the most appropriate location for a new airport followed by preparation of a Structure Plan to guide urbanisation of any surplus land associated with the existing airport site and a Master Plan for the new a new airport. The year culminated in preparation of an outcomes report, a decision by Council to narrow the focus to the existing airport land holding and preparation of a staged approach to this current planning. In light of this a draft Structure Plan and Master Plan is expected in the latter part of 2013 for consideration to advertise seeking public comment/input.

Review of Municipal Heritage Inventory - The Shire Planning Section has embarked, albeit as a low priority, on review of the Shire of Carnarvon Municipal Heritage Inventory to more accurately capture the recognise the heritage value of buildings and places within the Carnarvon municipality.

Formulation of Local Planning Policies – The Council embarked on commencement of formulating new Planning Policies to assist in guiding and regulating future land use and development across the Shire. This process also involves the evaluation of existing Policies to ensure they remain current and relevant to the community sentiment and expectation. It is expected this process, which includes community consultation, will run for a further 12 months.

Statutory Planning The past 12 months has seen continued processing of Development (Planning) Applications and providing advice to the Western Australian Planning Commission (WAPC) on subdivision/strata applications. Additionally, the State Government has continued to introduce a number of reforms to the planning system in Western Australia. The following provides some insight on these matters: Planning Statistics – Over the course of the 2012/2013 financial year the Council processed the following

applications:

Application Type Number

Development Applications 86

Subdivision Applications 10

Scheme Amendments 6

ECONOMIC DEVELOPMENT, ENTERTAINMENT AND TOURISM REPORT

While the Environmental Health and Building Services Sections was moved to the new Regulatory Services Directorate, the Development Services Directorate was bolstered by the inclusion of economic development and tourism that included the Carnarvon Visitor Centre and Civic Centre, previously part of the former Community Services Directorate. Visitor Centre – The Council in July 2012 accepted the responsibility for continued operation of the Carnarvon Visitor Centre due to financial viability difficulties experienced by the Carnarvon Tourist Bureau Inc. This resulted in appointment of Mrs Sharon Williams as the Manager of the Carnarvon Visitor Centre. An approach to establish dedicated administrative support from within the Shire, and tourism input from the Carnarvon Tourism Alliance, has assisted greatly in the operations of the Visitor Centre. Recent improvements through the change in management has seen work progressed on:

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New membership package New Visitor Centre website Refreshed Holiday Planner Increased accommodation, bus bookings and

souvenir sales Increase promotion across the whole district

Civic Centre – The Carnarvon Civic Centre has continued through 2012/13 financial to present live shows and cinema movies for the benefit of the community. During the year new digital projection equipment was installed in replace antiquated 35mm reel movies. This has allowed new movies to be shown immediately on release as opposed to a 6 month delay under the old format. The year also experienced a change in the Centre management with the departure of Mr Andrew Sloan and appointment of Mrs Michelle Gough as the Civic Centre Manager. The Civic Centre also could not operate effective and efficiently without the support of the ‘Friends of the Theatre’ of which the Shire is extremely appreciative of their assistance.

Economic Initiatives – The initial focus of from an economic development perspective has been the appointment of a local Economic/Tourism Officer to assist in the development and promotion of tourism through establishment of the new Visitor Centre website, revision of the tourist planner, and compilation of the new membership package. Additionally, this position has been instrumental in the preparation of a Reserves Management Plan for the Blowholes, which is ongoing and scheduled for completion by the end of 2013.

Ian D’Arcy DIRECTOR, DEVELOPMENT SERVICES

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STATUTORY REPORTS PLAN FOR THE FUTURE Section 5.56 of the Local Government Act requires Council to plan for the future. Council has incorporated the Plan For The Future into the Shire of Carnarvon’s Strategic Community Plan. Section 5.53 of the Local Government Act requires an overview of the plan for the future of the district made in accordance with, including major initiatives that are proposed to commence or to continue in the next financial year. The Plan was last reviewed by Council in June 2007. The Plan covers a variety of strategic directions and aspirations for the Shire of Carnarvon. As part of compliance with the State Government’s new Integrated Planning and Monitoring Framework legislation a new Strategic Community Plan was adopted by Council in 2012/2013 Financial year. This document is available on our website - www.carnarvon.wa.gov.au

DISABILITY ACCESS & INCLUSION PLAN Section 29(2) of the Disability Services Act requires local governments to report about the implementation of the plan. A review of the Shire of Carnarvon’s Disability Access & Inclusion Plan (previously Disability Services Plan) required by Part 5 of the Disability Services Act was carried out in 2012. In particular, the following areas were identified as priorities and have been progressed with appropriate strategies:

Robinson St/Town Beach upgrade has introduced seamless pavement throughout the precinct area to enhance access for people with mobility disability;

Pathways – maintenance of existing, to include off ramps, consult with users to determine priority areas;

Camel Lane Theatre – improve access for people with mobility disability;

Pelican point universal fishing platform repaired and made safe;

Pelican Point platform and access to beach;

Public toilets – need to be universal access;

Development of You’re Welcome website promoting local business, facilities which are accessible;

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

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RECORDKEEPING PLAN The State Records Act provides an obligation on local governments to adopt a Recordkeeping Plan which is an accurate reflection of its record keeping program. Further, an obligation on local governments exists to review its Plan periodically or when there is any significant change to its functions. In 2009/2010 Council’s Recordkeeping Plan and Policy was endorsed by the State Records Commission in accordance with Section 28 of the State Records Act 2000. Section 28 (5) of that Act requires that no more than 5 years must elapse between approval of a government organization’s Recordkeeping Plan and a review of it. Council’s archive building was significantly upgraded in 2006/07. Suitable storage space was identified as a major impediment to upgrading the records system. This continues to be a problem; however, the limited space issue was partially addressed in 2009/2010 with the proper disposal of records which had expiry dates for archive purposes as stipulated by the State Records Act. This practice has continued in 2012/2013. Staff training in records management (both physical and electronic) is an on-going requirement with staff also being trained during their induction to the organisation.

PUBLIC INTEREST DISCLOSURE

The Public Interest Disclosure Code was established by the Commissioner for Public Sector Standards under Section 20 of the Public Interest Disclosure Act. One of the principles of the Code is not just to provide protection to those who make disclosures (and those who are the subject of disclosures) but also to encourage a system of transparency and accountability in the way government officials act and utilise public monies. Matters that fall into the category of public interest include:

Improper conduct (irregular or unauthorised use of public resources);

An offence under State Law including corruption (substantial unauthorised or irregular use of, or substantial

mismanagement of, public monies)

Administration matters generally (conduct involving a substantial risk of injury to public health, prejudice to

public safety or harm to the environment)

Matters that relate to the Shire of Carnarvon should be referred to the Shire of Carnarvon’s Public Interest Disclosure Officer. Disclosures to the Public Interest Disclosure Officer can be made not just about officers of the Shire of Carnarvon but also about its elected officials. There is an obligation of the Public Interest Disclosure Officer in the Public Interest Disclosure Act to ensure that the disclosure is confidential and that the person making a disclosure is provided adequate protection from reprisals, civil and criminal liability or breach of confidentiality.

The Shire of Carnarvon had no Public Interest Disclosures during the reporting period.

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FREEDOM OF INFORMATION

Section 96 of the Freedom of Information Act requires local governments to publish an Information Statement. In summary, the Shire of Carnarvon’s Statement indicates that the Shire of Carnarvon is responsible for the good governance of the Shire and carries out functions as required including statutory compliance and provision of services and facilities. All Council meetings are open to the public and meeting dates and venues are advertised on a regular basis. Members of the public are invited to ask questions during Public Question Time shortly after the commencement of each meeting. The Shire of Carnarvon maintains records relating to the function and administration of the Shire, each property within the Shire and includes such documents as the Minutes of Meetings, Rate Book, Town Planning Scheme, Local Laws, Codes of Conduct, Register of Financial Interests, Register of Delegated Authority, Financial Statements and Electoral Rolls. These documents can be inspected free of charge at the Shire Office, 3 F r a n c i s Street, Carnarvon during office hours. Wherever possible and practical and in line with privacy laws, the Shire of Carnarvon makes personal information readily available free of charge. Three Freedom of Information requests were made during the reporting period.

NATIONAL COMPETITION POLICY

In 1995 the Council of Australian Government entered into a number of agreements known as the National Competition Policy. The Policy is a whole of government approach to bring about reform in the public sector to encourage government to become more competitive. Local government will mainly be affected where it operates significant business activities (defined as one that generates an annual income from fees and charges exceeding $200,000) that compete or could compete with private sector business. Local government will also be impacted where its local laws unnecessarily affect competition. A review of all local laws was undertaken during the year. The Shire of Carnarvon does not operate any significant business activities.

REGISTER OF MINOR COMPLAINTS

Section 5.121 of the Local Government Act requires the complaints officer for each local government to maintain a register of complaints which records all complaints that result in action under section 5.110(6) (b) or (c) of the Act.

Section 5.53 (2) (hb) of the Local Government Act requires that details of entries made under section 5.121 during the financial year in the register of complaints, including: (i) the number of complaints recorded on the register of complaints;

(ii) how the recorded complaints were dealt with; and

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CORPORATE PLAN

Building upon our 2011 Strategic Community Plan, the Corporate Business Plan outlines what the Shire intends to deliver over the next four years, to meet the needs of its community. The Corporate Business Plan is developed in response to the Western Australian Government’s Integrated Planning and Reporting Framework 2010/2011 to improve Local Government Strategic Planning and to guide Local Governments long and short term planning process.

WORKFORCE PLAN

We have developed our ten year Strategic Community Plan and our four year Corporate Plan which outlines our hopes and aspirations for our community. Our Workforce Plan, as part of the Western Australian Local Government’s integrated planning framework, helps to ensure the Shire has the right people in the right place at the right time, to meet the needs of our community.

The Shire faces a range of workforce challenges and opportunities. We have a healthy balance of female and

male staff, which promotes a diverse workforce and workplace. However, just 40% of our workforce is within the 35 to 49 year old age groups. This provides the Shire with a rich pool of young talent, yet at the same time places pressure on the organisation to maintain and retain this valued group. We also have a significant group of mature aged employees whose knowledge and expertise is critical to our business continuity. Overall, the Shire needs to develop retention strategies to address the needs of our employees at all stages of their careers and life. At the same time the Shire is experiencing significant

growth in its traditionally non-core areas of economic and community development and tourism. These changes will bring with them changes in the role of the Shire to a more facilitative advocacy and project management one, which will require new and emerging skill sets in our staff. This requires a workforce that is increasingly skilled and able to work flexibly and productively across the organisation in order to deliver the Shire’s Strategic Community Plan objectives. It also requires us to build a culture of innovation and continual improvement.

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SHIRE OF CARNARVON

FINANCIAL REPORT

FOR THE YEAR ENDED 30TH JUNE 2013

TABLE OF CONTENTS

Statement by Chief Executive Officer 2

Statement of Comprehensive Income by Nature or Type 3

Statement of Comprehensive Income by Program 4

Statement of Financial Position 5

Statement of Changes in Equity 6

Statement of Cash Flows 7

Rate Setting Statement 8

Notes to and Forming Part of the Financial Report 9 to 56

Independent Audit Report 57 & 58

Supplementary Ratio Information 59

SHIRE OF CARNARVON

FINANCIAL REPORT


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

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the Shire of Carnarvon being the annual financial report andother information for the financial year ended 30th June 2013 are in my opinion properly drawnup to present fairly the financial position of the Shire of Carnarvon at 30th June 2013 and theresults of the operations for the financial year then ended in accordance with the AustralianAccounting Standards and comply with the provisions of the Local Government Act 1995 andthe regulations under that Act.

Signed as authorisation of issue on the day of 2013

__________________________Ian DarcyChief Executive Officer

SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME

BY NATURE OR TYPEFOR THE YEAR ENDED 30TH JUNE 2013

NOTE 2013 2013 2012$ Budget $

$RevenueRates 22 3,795,200 3,768,057 3,545,386Operating Grants, Subsidies and Contributions 28 6,154,236 3,753,515 12,951,638Fees and Charges 27 2,990,529 2,562,425 2,724,325Interest Earnings 2(a) 1,735,294 1,950,000 545,774Other Revenue 656,496 557,381 371,534

15,331,755 12,591,378 20,138,657

ExpensesEmployee Costs (4,539,927) (5,133,956) (3,817,850)Materials and Contracts (29,204,004) (6,774,695) (6,491,269)Utility Charges (702,255) (564,223) (693,268)Depreciation on Non-Current Assets 2(a) (5,219,877) (4,772,180) (4,588,516)Interest Expenses 2(a) (34,828) (43,508) (40,678)Insurance Expenses (298,565) (230,450) (196,927)Other Expenditure (324,756) (541,215) (334,283)

(40,324,212) (18,060,227) (16,162,791)(24,992,457) (5,468,849) 3,975,866

Non-Operating Grants, Subsidies andContributions 28 13,360,745 8,037,048 55,541,671Profit on Asset Disposals 20 3,843 0 834,831Loss on Asset Disposal 20 (12,603) 0 (35,130)

Net Result (11,640,472) 2,568,199 60,317,238

Other Comprehensive Income

Changes on revaluation of non-current assets 12 783,753 0 0

Total Other Comprehensive Income 783,753 0 0

Total Comprehensive Income (10,856,719) 2,568,199 60,317,238

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

Page 3

SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME

BY PROGRAMFOR THE YEAR ENDED 30TH JUNE 2013

NOTE 2013 2013 2012$ Budget $

$RevenueGovernance 143,171 25,100 36,252General Purpose Funding 10,061,874 7,964,554 9,164,965Law, Order, Public Safety 154,103 165,687 94,107Health 49,947 31,000 37,091Education and Welfare 403,591 354,212 380,459Housing 67,904 79,300 29,122Community Amenities 1,567,914 1,526,446 1,708,414Recreation and Culture 775,783 582,567 477,777Transport 1,130,841 1,086,508 7,760,728Economic Services 922,832 747,508 306,798Other Property and Services 53,795 28,500 142,944

2(a) 15,331,755 12,591,382 20,138,657ExpensesGovernance (708,422) (825,192) (654,512)General Purpose Funding (120,098) (105,632) (82,648)Law, Order, Public Safety (568,119) (644,401) (476,547)Health (549,878) (570,865) (464,772)Education and Welfare (792,774) (1,072,744) (861,526)Housing (118,014) (107,420) (80,044)Community Amenities (2,191,562) (2,328,437) (2,343,662)Recreation and Culture (4,404,926) (4,135,850) (3,975,711)Transport (29,519,155) (6,659,659) (6,492,189)Economic Services (1,305,652) (1,296,816) (559,131)Other Property and Services (10,784) (269,703) (131,371)

2(a) (40,289,384) (18,016,718) (16,122,113)Finance CostsHousing (5,432) (5,312) (5,785)Recreation and Culture (24,973) (24,973) (28,917)Transport (4,423) (4,424) 0Other Property and Services 0 (8,800) (5,976)

2(a) (34,828) (43,509) (40,678)

Non-Operating Grants, Subsidies and ContributionsLaw, Order, Public Safety 0 0 8,660Community Amenities 0 938,636 447,189Recreation and Culture 5,689,318 5,178,636 1,675,000Transport 7,671,427 1,919,776 51,404,403Other Property and Services 0 0 2,006,419

13,360,745 8,037,048 55,541,671

Profit/(Loss) on Disposal of AssetsLaw, Order, Public Safety (5,735) 0 51Health 0 0 3,119Community Amenities 0 0 (13,348)Recreation and Culture 0 0 (820)Transport 0 0 (10,692)Other Property and Services (3,025) 0 821,391

(8,760) 0 799,701

Net Result (11,640,472) 2,568,199 60,317,238

Other Comprehensive IncomeChanges on revaluation of non-current assets 12 783,753 0 0Total Other Comprehensive Income 783,753 0 0

Total Comprehensive Income (10,856,719) 2,568,199 60,317,238


Page 4

SHIRE OF CARNARVONSTATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE 2013

NOTE 2013 2012$ $

CURRENT ASSETSCash and Cash Equivalents 3 45,949,004 58,743,345Trade and Other Receivables 4 3,178,941 2,965,653Inventories 5 47,583 9,609TOTAL CURRENT ASSETS 49,175,528 61,718,607

NON-CURRENT ASSETSOther Receivables 4 59,268 64,674Property, Plant and Equipment 6 20,564,981 15,075,995Infrastructure 7 86,677,429 81,784,175TOTAL NON-CURRENT ASSETS 107,301,678 96,924,844

TOTAL ASSETS 156,477,206 158,643,451

CURRENT LIABILITIESTrade and Other Payables 8 14,085,656 5,361,195Current Portion of Long Term Borrowings 9 100,403 94,075Provisions 10 698,696 628,873TOTAL CURRENT LIABILITIES 14,884,755 6,084,143

NON-CURRENT LIABILITIESLong Term Borrowings 9 362,555 462,958Provisions 10 62,154 71,889TOTAL NON-CURRENT LIABILITIES 424,709 534,847

TOTAL LIABILITIES 15,309,464 6,618,990

NET ASSETS 141,167,742 152,024,461

EQUITYRetained Surplus 91,003,834 83,353,892Reserves - Cash Backed 11 32,674,711 51,965,125Revaluation Surplus 12 17,489,197 16,705,444TOTAL EQUITY 141,167,742 152,024,461


Page 5

SHIRE OF CARNARVONSTATEMENT OF CHANGES IN EQUITY


RESERVESRETAINED CASH REVALUATION TOTAL

NOTE SURPLUS BACKED SURPLUS EQUITY$ $ $ $

Balance as at 1 July 2011 70,141,781 4,859,998 16,705,444 91,707,223

Comprehensive Income Net Result 60,317,238 0 0 60,317,238 Changes on Revaluation of Non-Current Assets 12 0 0 0 0Total Comprehensive Income 60,317,238 0 0 60,317,238

Reserve Transfers (47,105,127) 47,105,127 0 0

Balance as at 30 June 2012 83,353,892 51,965,125 16,705,444 152,024,461

Comprehensive Income Net Result (11,640,472) 0 0 (11,640,472) Changes on Revaluation of Non-Current Assets 12 0 0 783,753 783,753Total Comprehensive Income (11,640,472) 0 783,753 (10,856,719)

Reserve Transfers 19,290,414 (19,290,414) 0 0

Balance as at 30 June 2013 91,003,834 32,674,711 17,489,197 141,167,742


Page 6

SHIRE OF CARNARVONSTATEMENT OF CASH FLOWS


NOTE 2013 2013 2012$ Budget $

Cash Flows From Operating Activities $ReceiptsRates 3,754,521 3,756,057 3,580,884Operating Grants, Subsidies and Contributions 7,192,626 6,666,831 14,132,405Fees and Charges 2,990,529 2,562,425 2,729,010Interest Earnings 1,735,294 1,950,000 545,774Goods and Services Tax 3,102,982 0 6,134,065Other Revenue 295,689 557,381 371,534

19,071,641 15,492,694 27,493,672PaymentsEmployee Costs (4,487,987) (5,183,956) (3,827,980)Materials and Contracts (16,593,153) (7,019,695) (6,690,346)Utility Charges (702,255) (564,223) (693,268)Insurance Expenses (298,565) (230,450) (196,927)Interest expenses (35,528) (43,508) (41,335)Goods and Services Tax (8,224,091) 0 (1,981,689)Other Expenditure (324,756) (541,215) (334,283)

(30,666,335) (13,583,047) (13,765,828)Net Cash Provided By (Used In)Operating Activities 13(b) (11,594,694) 1,909,647 13,727,844

Cash Flows from Investing ActivitiesPayments for Purchase of Property, Plant & Equipment (5,006,788) (10,960,611) (2,290,497)Payments for Construction of Infrastructure (9,469,529) (4,312,447) (16,136,904)Non-Operating Grants, Subsidies and Contributions 13,360,745 8,037,048 55,541,671Proceeds from Sale of Plant & Equipment 10,000 0 1,111,345Net Cash Provided By (Used In)Investing Activities (1,105,572) (7,236,010) 38,225,615

Cash Flows from Financing ActivitiesRepayment of Debentures (94,075) (120,225) (88,148)Proceeds from New Debentures 0 300,000 0Net Cash Provided By (Used In)Financing Activities (94,075) 179,775 (88,148)

Net Increase (Decrease) in Cash Held (12,794,341) (5,146,588) 51,865,311Cash at Beginning of Year 58,743,345 55,065,112 6,878,034Cash and Cash Equivalents at the End of the Year 13(a) 45,949,004 49,918,524 58,743,345


Page 7

SHIRE OF CARNARVONRATE SETTING STATEMENT


2013 2013 2012NOTE Actual Budget Actual

$ $ $RevenueGovernance 143,171 25,100 36,252General Purpose Funding 6,569,077 4,478,008 5,910,663Law, Order, Public Safety 154,103 165,687 102,818Health 49,947 31,000 40,210Education and Welfare 403,591 354,212 380,459Housing 67,904 79,300 29,122Community Amenities 1,567,914 2,465,082 2,155,603Recreation and Culture 6,465,101 5,761,203 2,152,777Transport 8,802,268 3,006,284 59,165,131Economic Services 922,832 747,508 306,798Other Property and Services 57,638 28,500 2,981,024

25,203,546 17,141,884 73,260,857ExpensesGovernance (708,422) (825,192) (654,512)General Purpose Funding (120,098) (105,632) (82,648)Law, Order, Public Safety (573,854) (644,401) (476,547)Health (549,878) (570,865) (464,772)Education and Welfare (792,774) (1,072,744) (861,526)Housing (123,446) (112,732) (85,829)Community Amenities (2,191,562) (2,328,437) (2,357,010)Recreation and Culture (4,429,899) (4,160,823) (4,005,448)Transport (29,523,578) (6,664,083) (6,508,857)Economic Services (1,305,652) (1,296,816) (559,131)Other Property and Services (17,652) (278,503) (141,641)

(40,336,815) (18,060,228) (16,197,921)

Net Result Excluding Rates (15,133,269) (918,344) 57,062,936

Adjustments for Cash Budget Requirements:Non-Cash Expenditure and RevenueInitial Recognition of Assets Due to Change to Regulations- Land Vested in and Under the Control of Council (360,807) 0 0(Profit)/Loss on Asset Disposals 20 8,760 0 (799,701)Movement in Deferred Pensioner Rates (Non-Current) 5,406 0 4,150Movement in Employee Benefit Provisions (Non-Current) 60,088 0 (32,154)Depreciation and Amortisation on Assets 2(a) 5,219,877 4,772,180 4,588,516Capital Expenditure and RevenuePurchase Land and Buildings (4,920,443) (10,858,447) (1,801,165)Purchase Infrastructure Assets - Roads (1,242,755) (1,357,352) (7,982,824)Purchase Infrastructure Assets - Parks & Ovals (1,885,792) 0 (6,611,617)Purchase Infrastructure Assets - Footpaths (100,002) 0 (69,283)Purchase Infrastructure Assets - Airports (243,750) 0 (330,183)Purchase Infrastructure Assets - Others (5,997,230) (2,955,095) (1,142,997)Purchase Plant and Equipment (18,418) (87,000) (429,791)Purchase Furniture and Equipment (67,927) (15,164) (59,541)Proceeds from Disposal of Assets 20 10,000 0 1,111,345Repayment of Debentures 21 (94,075) (120,225) (88,148)Proceeds from New Debentures 21 0 300,000 0Transfers to Reserves (Restricted Assets) 11 (10,069,735) (2,341,470) (57,761,595)Transfers from Reserves (Restricted Assets) 11 29,360,149 7,316,058 8,228,484Transfers from Reserves (Restricted Cash) 2,427,984 0 0

ADD Surplus/(Deficit) July 1 B/Fwd 22(b) 1,964,303 2,778,256 4,823,569LESS Surplus/(Deficit) June 30 C/Fwd 22(b) 2,415,161 0 1,964,303

Total Amount Raised from General Rate 22(a) (3,492,797) (3,486,603) (3,254,302)


Page 8

SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT


1. SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies which have been adopted in the preparation of this financialreport are presented below and have been consistently applied unless stated otherwise.

(a) Basis of Preparation

of the selected non-current assets, financial assets and liabilities.

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 these financial statements.

(c) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where theamount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST receivable or payable. The net amountof GST recoverable from, or payable to the ATO, is included with receivables or payables in the statement of financial position.

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

Except for cash flow and rate setting information, the report has also been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value

The financial report is a general purpose financial statement which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoratative pronouncements of the Australian Accounting Standards Board, the local Government Act 1995 and accompanying regulations.

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

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

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1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(d) Cash and Cash Equivalents

(e) Trade and Other Receivables

(f) Inventories

General

Land Held for ResaleLand purchased for development and/or resale is valued at the lower of cost and net realisablevalue. Cost includes the cost of acquisition, development, borrowing costs and holding costsuntil completion of development. Finance costs and holding charges incurred after developmentis completed are expensed.

Gains and losses are recognised in the statement of comprehensive income at the time ofsigning an unconditional contract of sale if significant risks and rewards, and effective controlover the land, are passed on to the buyer at this point.

Land held for resale is classified as current except where it is held as non-current based onCouncil's intention to release for sale.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

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

Inventories are measured at the lower of cost and net realisable value.

Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks, other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

Bank overdrafts are shown as short term borrowings in current liabilities in the statement of financial position.

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business.

Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

Page 10




(g) Fixed Assets

Mandatory Requirement to Revalue Non-Current Assets

as follows:

(i) that are plant and equipment; and (ii) that are - (I) land and buildings; or (II) infrastructure;and

Land Under Control

The amendments allow for a phasing in of fair value in relation to fixed assets over three years

(a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local government that are plant and equipment; and

(b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local government -

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

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

Each class of fixed assets is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation or impairment losses.

Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the measurement of non-current assets at fair value became mandatory.

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

Council has commenced the process of adopting Fair Value in accordance with the Regulations.

In accordance with local Government (Financial Management) Regulation 16 (a), the Council is required to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course, showground, racecourse or other sporting or recreational facility of State or regional significance.

Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were then classified as Land and revalued along with other land in accordance with other policies detailed in this Note.

Whilst they were initially recorded at cost, fair value at the date of acquisition was deemed cost as per AASB 116.

Page 11




(g) Fixed Assets (Continued)

Initial Recognition

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset,as appropriate, only when it is probable future economic benefits associated with the item willflow to the Council and the cost of the item can be measured reliably. All other repairs andmaintenance are recognised as expenses in the statement of comprehensive income in theperiod in which they are incurred.

Revaluation

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 determined usingfair value at reporting date.

For land and buildings, fair value will be determined based on the nature of the asset class. For land and non-specialised buildings, fair value is determined on the basis of observable open market values of similar assets, adjusted for conditions and comparability at their highest and best use (Level 2 inputs in the fair value hierarchy).

With regards to specialised buildings, fair value is determined having regard for current replacement cost and both observable and unobservable costs. These include construction costs based on recent contract prices, current condition (observable Level 2 inputs in the fair value hierarchy), residual values and remaining useful life assessments (unobservable Level 3 inputs in the fair value hierarchy).

For infrastructure and other asset classes, fair value is determined to be the current replacement cost of an asset (Level 2 inputs in the fair value hierarchy) less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset (Level 3 inputs in the fair value hierarchy).

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

In addition, the amendments to the Financial Management Regulations mandating the use of Fair Value, imposes a further minimum of 3 years revaluation requirement. As a minimum, all assets carried at a revalued amount, will be revalued at least every 3 years.

When performing a revaluation, the Council uses a mix of both independent and Management valuation using the following as a guide:

Revalued assets are carried at their fair value being the price that would be received to sell the asset, in an orderly transaction between market participants at the measurement date (Level 1 inputs in the fair value hierarchy).

All assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads.

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

Page 12





Transitional Arrangement

Early Adoption of AASB 13 - Fair Value Measurement

Land under Roads

Due to the nature and timing of the adoption (driven by legislation), the adoption of this standard has had no effect on previous reporting periods.

Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.

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

Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail.

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

Those assets carried at cost will be carried in accordance with the policy detailed in the Initial Recognition section as detailed above.

Those assets carried at fair value will be carried in accordance with the Revaluation methodology section as detailed above.

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

During the time it takes to transition the carrying value of non-current assets from the cost approach to the fair value approach, the Council may still be utilising both methods across differing asset classes.

Whilst the new accounting standard in relation to fair value, AASB 13 - Fair Value Measurement does not become applicable until the end of the year ended 30 June 2014 (in relation to Council), given the legislative need to commence using Fair Value methodology for this reporting period, the Council chose to earlt adopt AASB 13 (as allowed for in the standard).

As a consequence, the principles embodied in AASB 13 - Fair Value Measurement have been applied to this reporting period (year ended 30 June 2013).

Page 13





Depreciation of Non-Current Assets

embodied in those assets.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets,from the time the asset is completed and held ready for use.

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

Buildings 30 to 50 yearsFurniture and Equipment 4 to 10 yearsPlant and Equipment 5 to 15 yearsSealed roads and streets formation not depreciated pavement 50 years seal - bituminous seals 20 years - asphalt surfaces 25 yearsGravel roads formation not depreciated pavement 50 yearsFormed roads formation not depreciated pavement 50 yearsFootpaths - slab 40 yearsSewerage piping 100 yearsWater supply piping and drainage systems 75 years

Capitalisation Threshold

(h) Intangible Assets

EasementsDue to legislative changes, Easements are required to be recognised as assets.

If significant, they are initially recognised at cost and have an indefinite useful life.

depreciated over their useful lives in a manner which reflects the consumption of the future economic benefits

All non-current assets having a limited useful life (excluding freehold land) are separately and systematically

Expenditure on items of equipment under $1,000 is not capitalised. Rather, it is recorded on an asset inventory listing.

Gains and losses on disposals are determined by comparing proceeds with with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

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

Page 14




(i) Financial Instruments

Initial Recognition and Measurement

Classification and Subsequent Measurement

(i) Financial assets at fair value through profit and loss

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or at cost.

Financial assets and financial liabilities are recognised when the Council becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Council commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately.

The effective interest rate method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

Amortised cost is calculated as:

(a) the amount in which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest rate method; and

(d) less any reduction for impairment.

Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

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. They are subsequently measured at fair value with changes to carrying amount being included in profit or loss.

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(i) Financial Instruments (Continued)

Classification and Subsequent Measurement (Continued)(ii) Loans and receivables

(iii) Held-to-maturity investments

(iv) Available-for-sale financial assets

(v) Financial liabilities

Impairment

Loans and receivables are included in current assets where they are expected to mature within 12 months after the end of the reporting period.

A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events having occurred, which will have an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial instruments, a significant or prolonged decline in the market value of the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point.

Held-to-maturity investments are included in current assets where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as non-current.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

They are subsequently measured at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to the asset previously recognised in other comprehensive income, is reclassified into profit or loss.

At the end of each reporting period, the Council assesses whether there is objective evidence that a financial instrument has been impaired.

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Available-for-sale financial assets, are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable.

Available-for-sale financial assets are included in current assets where they are expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as non-current.

Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Page 16




(i) Financial Instruments (Continued)

Derecognition

(j) 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 impairment test is carried out on the asset by comparing therecoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value inuse, to the asset's carrying amount.

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

(k) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Councilprior to the end of the financial year that are unpaid and arise when the Council becomesobliged to make future payments in respect of the purchase of these goods and services.The amounts are unsecured, are recognised as a current liability and are normally paid within30 days of recognition.

(l) Employee Benefits

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

Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another standard (eg AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard.

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

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

Provision is made for the Council's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to the employee wage increases and the probability the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity matching the expected timing of cash flows.

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(n) ProvisionsProvisions are recognised when:

a) the Council has a present legal or constructive obligation as a result of past events; b) for which it is probable that an outflow of economic benefits will result; and c) that outflow can be reliably measured.

(o) 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 Council, are classified as financeleases.

Finance leases are capitalised recording an asset and a liability at the lower amounts equal to thefair value of the leased property or the present value of the minimum lease payments, including anyguaranteed residual values. Lease payments are allocated between the reduction of the lease liabilityand the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated useful livesor the lease term.

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

Lease incentives under operating leases are recognised as a liability and amortised on a straight linebasis over the life of the lease term.

(p) Joint VentureThe Council’s interest in a joint venture has been recognised in the financial statements byincluding its share of any assets, liabilities, revenues and expenses of the joint venture withinthe appropriate line items of the financial statement. Information about the joint venture is set out in Note 16.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

The Council's interest in joint venture entities are recorded using the equity method of accounting (refer to Note 1(p) for details) in the financial report.

When the Council contributes assets to the joint venture or if the Council purchases assets from the joint venture, only the portion of gain or loss not attributable to the Council's share of the joint venture shall be recognised. The Council recognises the full amount of any loss when the contribution results in a reduction in the net realisable value of current assets or an impairment loss.

Page 18




(q) 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 assets acquired from rates is obtained at the commencement of the rating periodor, where earlier, upon receipt 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 are disclosed in Note 2(c). That note also discloses the amountof contributions recognised as revenues in a previous reporting period which were obtained inrespect of the local government's operation for the current reporting period.

(r) Superannuation

(s) Current and Non-Current Classification

(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) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annual financial report relate tothe original budget estimate for the relevant item of disclosure.

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 the 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.

The Council contributes to a number of superannuation funds on behalf of employees. All funds to which the Council contributes are defined contribution plans.

When the Council applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statement, a statement of financial position as at the beginning of the earliest period will be disclosed.

Page 19




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

Title and Topic Issued Applicable (*) Impact

(i) AASB 9 – Financial Instruments

December 2009 01 January 2013 Nil – The objective of this Standard is to improve and simplify the approach for classification and

AASB 2012 – 6 Amendments to Australian Accounting Standards – Mandatory effective date of AASB 9 and Transition Disclosures

September 2012 Deferred AASB 9 until 1 January 2015

measurement of financial assets compared with the requirements of AASB 139. Given the nature of the financial assets of the Council, it is not anticipated the standard will have any material effect.

(ii) AASB 2009 – 11 Amendments to Australian Accounting Standards arising from AASB 9

December 2009 01 January 2013 Nil – The revisions embodied in this standard give effect to the consequential changes arising from the issuance of AASB 9 which is not anticipated to have any material effect on the Council (refer (i) above).

[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12)

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Council.

Management’s assessment of the new and amended pronouncement that are relevant to the Council, applicable to future reporting periods and which have not yet been adopted are set out as follows.

Page 20




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


(iii) AASB 2010 – 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

December 2010 01 January 2013 Nil – The revisions embodied in this standard give effect to the consequential changes arising from the issuance of AASB 9 which is not anticipated to have any material effect on the Council (refer (i) above).

[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

(iv) AASB 10 - Consolidated Financial Statements, AASB 11 - Joint Arrangements, AASB 12 - Disclosure of Interests in Other Entities, AASB 127 -Separate Financial Statements, AASB 128 - Investments in Associates and Joint Ventures, AASB 2011 - 7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangement Standards

August 2011 01 January 2013 Nil - None of these, except for AASB 128 , are expected to have significant application to the operations of the Council. With respect to AASB 128, where the Council has an interest in a Joint Venture, the requirements of AASB 128 supercede those of the current Joint Venture Standard AASB 131. The new standard more clearly defines the accounting treatment and disclosure in relation to it. Due to the nature of the Joint Venture, it is not expected to have a significant impact on the Council.

[AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

Page 21






(v) AASB 2011 - 9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income

September 2011 01 July 2013 The main change embodied in this standard is the requirement to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently.

[AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

It effects presentation only and is not expected to significantly impact the Council.

(vi) AASB 119 - Employee Benefits, AASB 2011 - 10 Amendments to Australian Accounting Standards arising from AASB 119 [AASB 1, 8, 101, 124, 134, 1049 & 2012-8 and Interpretation 14]

September 2011 01 January 2013 The changes in relation to defined benefit plans contained in this standard are not expected to significantly impact the Council nor are the changes to AASBs in relation to termination benefits.

(vii) AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 7 & 32]

June 2012 01 January 2013 Principally amends AASB 7: Financial Instruments: Disclosures to require entities to include information that will enable users of their financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.

This Standard is not expected to significantly impact on the Council’s financial statements.

Page 22






(viii) AASB 2012-3: Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132]

June 2013 01 January 2014 This Standard adds application guidance to AASB 132: Financial Instruments: Presentation to address potential inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.

This Standard is not expected to significantly impact on the Council’s financial statements.

(ix) AASB 2012-5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle [AASB 1, 101, 116, 132, 134

June 2012 01 January 2013 Outlines changes to the various standards and interpretations as listed. These topics are not currently relevant to Council, nor are they expected to be in the future. As a consequence, this Standard is not expected to significantly impact on the Council’s financial statements.

and Interpretation 2]

(x) AASB 2012-10: Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments.

December 2012 01 January 2013 Mainly consequential changes relating to transition guidance. It is not expected to have a significant impact on Council.

[AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Interpretation 12]

(*) Applicable to reporting periods commencing on or after the given date.Page 23




(y) Adoption of New and Revised Accounting Standards

AASB 2010 – 8AASB 2011 - 3AASB 2011 - 13

The Council also chose to early adopt AASB 13 – Fair Value Measurement as allowed for in the standard. For futher details with respect to this early adoption, refer to Note 1(g).

During the current year, the Council adopted all of the new and revised Australian Accounting Standards and Interpretations which became mandatory and which were applicable to its operations.

These new and revised standards were:

The standards adopted had a minimal effect on the accounting and reporting practices of the Council as they were either largely editorial in nature, were revisions to help ensure consistency with presentation, recognition and measurement criteria of IFRSs or related to topics not relevant to operations.

Page 24



2. REVENUE AND EXPENSES 2013 2012$ $

(a) Net Result

The Net Result includes:

(i) Charging as an Expense:

Significant ExpenseTransport 22,857,993 0

This significant expense relates to the construction of levee banks for Flood Mitigation.

Auditors Remuneration- Audit of the financial report 22,375 21,750- Financial Management Review 0 8,500- Assistance with the finalisation of the annual financial report 6,750 4,400- Audit of Acquittals 21,350 3,450

DepreciationLand & Buildings 307,524 268,038Furniture and Equipment 58,819 28,383Plant and Equipment 283,416 332,875Roads 3,756,246 3,308,419Footpaths 45,023 43,637Drainage 58,328 54,974Bridges 155,022 155,021Parks & Ovals 403,365 271,327Levee 30,617 29,974Airport 59,537 46,794Carparks 55,206 45,086Others 6,774 3,988

5,219,877 4,588,516Interest Expenses (Finance Costs)Debentures (refer Note 21(a)) 34,828 40,678

Rental Charges- Operating Leases 255,017 111,571

(ii) Crediting as Revenue:

Significant RevenueRecreation and Culture 360,807 0

This significant revenue relates to the initial recognition of land under the Shire's control in accordance with amendments to the Financial Management Regulations. It has beenclassified as Other Revenue by Nature or Type.

2013 2013 2012$ Budget $

Interest Earnings $Investments- Reserve Funds 1,565,653 1,841,470 400,140- Other Funds 90,542 108,530 117,080Other Interest Revenue (refer note 26) 79,099 0 28,554

1,735,294 1,950,000 545,774

Page 25



2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective

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

Council operations as disclosed in this budget encompass the following service orientatedactivities/programs:

GOVERNANCEObjective: To provide a decision making process for the efficient allocation of resources.Activities: Administration and operations of facilities and services to members of Council. Other costs that relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council services.

GENERAL PURPOSE FUNDINGObjective: To collect general reveunue to allow for the provision of services.Activities: Rates activity, general purpose grants, banking costs and interest revenue.

LAW, ORDER, PUBLIC SAFETYObjective: To provide services to help ensure safer community.Activities: Supervision of various local laws, fire prevention, emergency services, CBD security, administration of the Crime Prevention Plan.

HEALTHObjectives: To provide an operational framework for good community health.Activities: Food quality and pest control, inspections and infant health. This function also

provides for the implentation of the Healthy Lifestyles model.

EDUCATION AND WELFAREObjectives: To meet the needs of the community in these areas.Activities: Support pre school facilities and assistance of seniors and retirement villages This function also provides for Youth Strategy and the accounting of the Carnarvon Youth Co ordinating Networks finance as part of an agreement.

HOUSINGObjectives: To meet the needs of the Shire of Carnarvon Staff.Activities: Staff Housing.

COMMUNITY AMENITIESObjectives: To provide sanitary and essential services required by the community. To provide land development strategies and to process land development activities. Environmental sustainability.Activities: Refuse collection service, operation of refuse site, administration of town planning scheme, cemetery service and maintenance, environmental protection services and land development services.

RECREATION AND CULTUREObjectives: To establish and manage efficiently infrastructure and resources which will help the social well being of the community.Activities: Operations of Civic Centre (Camel Lane), aquatic centre and beach areas, regional libray service, cultural and heritage services and facilities, reserves parks and gardens

Page 26



2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective (Continued)

TRANSPORTObjectives: To provide effective and efficient transport services to the community.Activities: Maintenance of streets, roads, footpaths, street lighting, airport. Agency for Department of Planning and Infrastructures On Line Vehicle Licensing Service.

ECONOMIC SERVICESObjectives: To help promote and market the Shire of Carnarvon to the world and impove the economic well being. To ensure building development regulations are adhered to.Activities: Noxious weed control, tourism and area promotion, building control and services.

OTHER PROPERTY & SERVICESObjectives: To ensure works programs are operating efficiently.Activities: Private works operations, public works operations and plant operations.

Page 27


FOR THE YEAR ENDED 30TH JUNE 20132. REVENUE AND EXPENSES (Continued)

(c) Conditions Over Grants/Contributions Opening Closing ClosingBalance (*) Received (+) Expended (#) Balance (*) Received (+) Expended (#) Balance

Function/ 1-Jul-11 2011/12 2011/12 30-Jun-12 2012/13 2012/13 30-Jun-13Grant/Contribution Activity $ $ $ $ $ $ $

Indigenous Diabetes/Chronic Diseases Education and Welfare 27500 0 (27,500) 0 0 0 0Blowholes (Balance of $1,800,000) Recreation & Culture 1,400,697 56,307 (13,551) 1,443,453 60,378 (347,718) 1,156,113R4R RGS Intergated Water Recreation & Culture 148,018 5,950 (95,497) 58,471 1,637 (60,108) 0Youth DCP & DCS Education and Welfare 140,073 229,418 (307,761) 61,730 242,336 (185,354) 118,712Aged Friendly Communities Education and Welfare 3,750 151 (204) 3,697 0 (3,697) 0DRDLG Fascine Redevelopment Recreation & Culture 312,000 480,542 (644,272) 148,270 0 (148,270) 0GDC & DRDLG Library Art Gall (RDL) Recreation & Culture 700,000 1,201,587 (6,023) 1,895,564 67,410 (1,962,974) 0GDC & DRDLG Library Art Gall (GDC) Recreation & Culture 557,491 12,025 (139,164) 430,352 609,994 (1,040,346) 0GDC & DRDLG Library Art Gall Recreation & Culture 0 522,433 0 522,433 9,983 (532,416) 0Robinson St Fascine Redevelopment Transport 200,000 7,977,306 (6,804,812) 1,372,494 14,479 (1,386,973) 0Robinson St Fascine Redevelopment Transport 0 420,000 0 420,000 0 (420,000) 0TDOfficer Other Property and Services 28,089 1,129 (29,218) 0 28,089 (28,089) 0MRD Blackspot Transport 16,000 643 0 16,643 769 (17,412) 0DOH Animal Health Program Law, Order, Public Safety 16,668 0 (16,668) 0 0 0 0Flood Mitigation (State) Transport 0 42,500,000 0 42,500,000 1,761,731 (21,017,993) 23,243,738Flood Mitigation (Federal) Transport 0 0 0 0 5,257,860 0 5,257,860CLGF S2 Browns Range Community Amenities 0 200,000 (55,686) 144,314 0 (144,314) 0CLGF S2 Pel Point Ablutions Community Amenities 0 39,783 0 39,783 0 (39,783) 0CLGF S2 Carnarvon Rd Transport 0 93,000 (68,705) 24,295 0 (24,295) 0CLGF S2 Olivia Terrace Transport 0 120,000 (216) 119,784 0 (119,784) 0CLGF S2 Aquatic Centre CP Recreation & Culture 0 175,000 (65,476) 109,524 0 (109,524) 0CLGF S2 Festival Grds CP Recreation & Culture 0 225,000 (103,219) 121,781 0 (121,781) 0CLGF S2 Pel Point Rd Restoration Recreation & Culture 0 100,000 0 100,000 0 (100,000) 0Waste Facility (Regional CLGF) Community Amenities 0 374,960 0 374,960 17,332 (6,175) 386,117Coral Bay Settlement Plan Community Amenities 0 270,000 0 270,000 7,254 (201,944) 75,310Airport Structure Plan (SPC) Transport 0 50,000 0 50,000 1,372 (51,372) 0Fascine Stage 5 Recreation & Culture 0 0 0 0 5,053,925 (5,053,925) 0Kidsport Community Amenities 0 0 0 0 52,000 (38,129) 13,871Department of Local Government (Workforce) Administration 0 0 0 0 25,000 0 25,000Department of Local Government (RCG) Administration 0 0 0 0 75,000 0 75,000East Carnarvon & Kingsford Structure Plan Planning 0 0 0 0 60,000 0 60,000Babbage & Whitlock Isn Structure Plan Planning 0 0 0 0 75,000 0 75,000

Total 3,910,711 55,129,105 (8,812,268) 50,227,548 13,421,549 (33,162,376) 30,486,721

Notes:

(*) - Grants/contributions recognised as revenue in a previous reporting period which were not expended at the close of the previous reporting period.

(+) - New grants/contributions which were recognised as revenues during the reporting period and which had not yet been fully expended in the manner specified by the contributor.

(#) - Grants/contributions which had been recognised as revenues in a previous reporting period or received in the current reporting period and which were expended in the current reporting period in the manner specified by the contributor.

All of the Unspent Grants and Contributions were included in Unspent Grants and Contributions Reserve.

Page 28



2013 2012$ $

3. CASH AND CASH EQUIVALENTS

Unrestricted 13,274,293 6,778,220Restricted 32,674,711 51,965,125

45,949,004 58,743,345The following restrictions have been imposed byregulations or other externally imposed requirements:

Leave Reserve 126,097 101,871Plant Reserve 120,534 120,090Waste Disposal Reserve 35,995 35,862Property Infrastructure Reserve 1,624 21,080Coral Bay Tip Reserve 20,737 303,585Staff Housing Reserve 304,707 177,860Civic Centre Reserve 100,383 64,189I.T. Replacement Reserve 64,322 87,703Airport Reserve 28,136 20,661Surge/Fascine Wall Reserve 304,824 302,289Flood Mitigation Reserve 9,832 21,994Town Planning Scheme Reserve 22,040 248,387Fascine Maintenance Reserve 250,470 1,304,123OTC/NASA Reserve 7,512 7,484Blowholes Reserve 20,425 20,383Unspent Grants and Contributions Reserve 30,486,721 47,799,564Land and Infrastructure Development Reserve 770,352 1,328,000

32,674,711 51,965,125

4. TRADE AND OTHER RECEIVABLES

CurrentRates Outstanding 295,047 248,962Sundry Debtors 1,569,857 460,608Less Provision for Doubtful Debt (3,425) (3,425)Accrued Income 82,957 2,234,298Bond Staff Housing 3,010 3,010GST Receivable 1,205,593 0ESL Receivable 25,902 22,200

3,178,941 2,965,653Non-CurrentRates Outstanding - Pensioners 59,268 64,674

59,268 64,674

5. INVENTORIES

CurrentFuel and Materials 17,641 4,857Civic Centre (520) 4,752Visitors Centre 30,461 0

47,583 9,609

Page 29



2013 2012$ $

6. PROPERTY, PLANT AND EQUIPMENT

Land and BuildingsFreehold Land - Cost 1,405,464 1,066,894

Land (Vested in and Under Control of Council)- Cost 360,807 0Total Land 1,766,271 1,066,894

Buildings - Cost 20,693,117 16,114,491

Less Accumulated Depreciation (4,075,745) (3,769,974)

Total Buildings 16,617,372 12,344,517

Total Land and Buildings 18,383,643 13,411,411

Furniture and Equipment - Cost 1,363,970 967,387Less Accumulated Depreciation (1,088,910) (813,775)

275,060 153,612

Plant and Equipment - Independent Valuation 2013 1,830,100 0Plant and Equipment - Management Valuation 2013 76,178 0Plant and Equipment - Cost 0 4,157,387Less Accumulated Depreciation 0 (2,646,415)

1,906,278 1,510,972

20,564,981 15,075,995

Page 30



6. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)Plant and Equipment:The Shire's Plant and Equipment was revalued at 30 June 2013 by independent valuers andmanagement. Those Plant and Equipment that were revalued by independent valuers weremade on the basis of open market values of similar assets adjusted for condition andcomparability (Level 2 inputs in the fair value hierarchy).

The remaining Plant and Equipment were valued at 30 June 2013 by management havingregard for their current replacement cost, condition assessment, residual values andremaining useful life.

Given the significance of the level 3 inputs into the overall fair value measurement, theassets are deemed to have been valued using Level 3 inputs. These level 3 inputs are basedon assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential toresult in a significant higher or lower fair value measurement.

Overall the revaluation resulted in an increase of $783,753 in the net value of the Shire's plant and equipment. All of this increase was credited to the revaluation surplus in theShire's equity (refer Note 12(b) further details) and was recognised as changes onRevaluation of non-current assets in the Statement of Comprehensive Income.

Page 31



6. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Movements in Carrying Amounts

Movement in the carrying amounts of each class of property, plant and equipment between the beginning and the endof the current financial year.

Total Plant Plant FurnitureLand and and and

Land Buildings and Equipment Equipment Equipment TotalBuildings (Level 2) (Level 3)

$ $ $ $ $ $ $

Balance as at the beginningof the year 1,066,894 12,344,517 13,411,411 1,437,102 73,870 153,612 15,075,995

Additions 338,570 4,581,873 4,920,443 0 18,418 67,927 5,006,788

(Disposals) 0 0 0 (12,603) 0 0 (12,603)

Asset Class Reclassification 0 (1,494) (1,494) (110,846) 0 112,340 0

Revaluation - Increments/(Decrements) 0 0 0 783,753 0 0 783,753

Initial Recognition of assetsDue to Changes to Regulations 360,807 0 360,807 0 0 0 360,807

Depreciation (Expense) 0 (307,524) (307,524) (267,306) (16,110) (58,819) (649,759)

Carrying amount at theend of year 1,766,271 16,617,372 18,383,643 1,830,100 76,178 275,060 20,564,981

Page 32



2013 2012$ $

7. INFRASTRUCTURERoads - Management Valuation 2011 63,495,853 63,495,853Roads - Cost 9,225,579 7,982,824Less Accumulated Depreciation (26,674,548) (22,918,302)

46,046,884 48,560,375

Footpaths - Cost 2,442,109 2,342,107Less Accumulated Depreciation (1,001,112) (956,089)

1,440,997 1,386,018

Drainage - Cost 3,276,466 3,219,546Less Accumulated Depreciation (1,930,878) (1,872,550)

1,345,588 1,346,996

Parks and Ovals - Cost 22,057,457 20,178,356Less Accumulated Depreciation (6,150,902) (5,748,071)

15,906,555 14,430,285

Bridges - Cost 7,751,066 7,751,066Less Accumulated Depreciation (1,348,285) (1,193,263)

6,402,781 6,557,803

Levee - Cost 6,123,380 6,123,380Less Accumulated Depreciation (690,119) (659,502)

5,433,261 5,463,878

Airport - Cost 8,588,078 8,344,327Less Accumulated Depreciation (6,583,230) (6,523,692)

2,004,848 1,820,635

Car Parks - Cost 1,412,677 985,339Less Accumulated Depreciation (441,464) (386,258)

971,213 599,081

Other Infrastructure - Cost 7,154,599 1,641,627Less Accumulated Depreciation (29,298) (22,523)

7,125,301 1,619,104

86,677,429 81,784,175

The above Management Valuation in relation to Road Infrastructure was performed in 2011and was not subject to the current requirements of Local Government (Financial Management)Regulation 17A. It was performed in accordance with AASB116. In accordance with the newregulation, it is due for revalution by 30th June 2015 (if not performed prior) and will be subject tothe requirements of AASB13 upon revaluation.

Page 33



INFRASTRUCTURE (Continued)

Movements in Carrying Amounts

Movement in the carrying amounts of each class of infrastructure between the beginning and the endof the current financial year.

Parksand Other

Roads Footpaths Drainage Ovals Bridges Levee Airport Car Parks Infrastructure Total$ $ $ $ $ $ $ $ $ $

Balance at the beginningof the year 48,560,375 1,386,018 1,346,996 14,430,285 6,557,803 5,463,878 1,820,635 599,081 1,619,104 81,784,175

Additions 1,242,755 100,002 56,920 1,885,792 0 0 243,750 427,338 5,512,972 9,469,529

(Disposals) 0 0 0 (6,157) 0 0 0 0 0 (6,157)

Depreciation (Expense) (3,756,246) (45,023) (58,328) (403,365) (155,022) (30,617) (59,537) (55,206) (6,774) (4,570,118)

Carrying amount at theend of year 46,046,884 1,440,997 1,345,588 15,906,555 6,402,781 5,433,261 2,004,848 971,213 7,125,302 86,677,429

Page 34



2013 2012$ $

8. TRADE AND OTHER PAYABLES

CurrentSundry Creditors 13,919,286 1,270,461Accrued Interest on Debentures 2,805 3,505Accrued Salaries and Wages 93,080 106,300GST Payable 0 3,915,516PAYG & FBT Payable 70,485 65,413

14,085,656 5,361,195

9. LONG-TERM BORROWINGS

CurrentSecured by Floating Charge Debentures 100,403 94,075

100,403 94,075

Non-CurrentSecured by Floating Charge Debentures 362,555 462,958

362,555 462,958

Additional detail on borrowings is provided in Note 21.

10. PROVISIONSAnalysis of Total Provisions:CurrentProvision for Annual Leave 473,623 456,873Provision for Long Service Leave 225,073 172,000

698,696 628,873

Non-CurrentProvision for Long Service Leave 62,154 71,889

62,154 71,889

Provision for Provision forAnnual Long ServiceLeave Leave Total

$ $ $

Opening balance as at 1 July 2012 456,873 243,889 700,762Net Additional provisions 16,750 43,338 60,088Balance at 30 June 2013 473,623 287,227 760,850

Page 35



2013 2013 2012$ Budget $

$11. RESERVES - CASH BACKED

(a) Leave ReserveOpening Balance 101,871 101,871 35,331Amount Set Aside / Transfer to Reserve 24,226 3,500 66,540Amount Used / Transfer from Reserve 0 0 0

126,097 105,371 101,871

(b) Plant ReserveOpening Balance 120,090 120,091 131,396Amount Set Aside / Transfer to Reserve 444 4,100 106,894Amount Used / Transfer from Reserve 0 0 (118,200)

120,534 124,191 120,090

(c) Waste Disposal ReserveOpening Balance 35,862 35,862 34,616Amount Set Aside / Transfer to Reserve 133 1,200 1,246Amount Used / Transfer from Reserve 0 0 0

35,995 37,062 35,862

(d) Property Infrastructure ReserveOpening Balance 21,080 21,080 20,833Amount Set Aside / Transfer to Reserve 44 700 247Amount Used / Transfer from Reserve (19,500) (19,500) 0

1,624 2,280 21,080

(e) Coral Bay Tip ReserveOpening Balance 20,661 20,662 19,944Amount Set Aside / Transfer to Reserve 76 720 717Amount Used / Transfer from Reserve 0 0 0

20,737 21,382 20,661

(f) Staff Housing ReserveOpening Balance 303,585 303,584 486,086Amount Set Aside / Transfer to Reserve 1,122 10,400 17,499Amount Used / Transfer from Reserve 0 0 (200,000)

304,707 313,984 303,585

(g) Civic Centre ReserveOpening Balance 177,860 177,860 153,663Amount Set Aside / Transfer to Reserve 368 6,200 24,197Amount Used / Transfer from Reserve (77,845) (177,845) 0

100,383 6,215 177,860

Page 36



2013 2013 2012$ Budget $

$11. RESERVES - CASH BACKED (CONTINUED)

(h) I.T. Replacement ReserveOpening Balance 64,189 64,189 63,437Amount Set Aside / Transfer to Reserve 133 2,200 752Amount Used / Transfer from Reserve 0 (65,000) 0

64,322 1,389 64,189

(i) Airport ReserveOpening Balance 87,703 87,704 246,193Amount Set Aside / Transfer to Reserve 324 8,850 8,862Amount Used / Transfer from Reserve (59,891) (65,658) (167,352)

28,136 30,896 87,703

(j) Surge/Fascine Wall ReserveOpening Balance 302,289 302,289 296,344Amount Set Aside / Transfer to Reserve 2,535 10,500 5,945Amount Used / Transfer from Reserve 0 0 0

304,824 312,789 302,289

(k) Flood Mitigation ReserveOpening Balance 1,304,123 1,304,123 1,278,475Amount Set Aside / Transfer to Reserve 10,939 45,400 25,648Amount Used / Transfer from Reserve (1,305,230) 0 0

9,832 1,349,523 1,304,123

(l) Town Planning Scheme ReserveOpening Balance 21,994 21,994 57,275Amount Set Aside / Transfer to Reserve 46 2,000 679Amount Used / Transfer from Reserve 0 0 (35,960)

22,040 23,994 21,994

(m) Fascine Maintenance ReserveOpening Balance 248,387 248,387 243,501Amount Set Aside / Transfer to Reserve 2,083 8,600 4,886Amount Used / Transfer from Reserve 0 0 0

250,470 256,987 248,387

(n) OTC/NASA ReserveOpening Balance 7,484 7,484 39,077Amount Set Aside / Transfer to Reserve 28 1,400 1,407Amount Used / Transfer from Reserve 0 0 (33,000)

7,512 8,884 7,484

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2013 2013 2012$ Budget $

$11. RESERVES - CASH BACKED (CONTINUED)

(o) Blowholes ReserveOpening Balance 20,383 20,383 20,144Amount Set Aside / Transfer to Reserve 42 700 239Amount Used / Transfer from Reserve 0 0 0

20,425 21,083 20,383

(p) Unspent Grants and Contributions ReserveOpening Balance 47,799,564 50,227,549 1,733,683Amount Set Aside / Transfer to Reserve 10,024,445 2,200,000 53,739,853Amount Used / Transfer from Reserve (27,337,288) (6,660,055) (7,673,972)

30,486,721 45,767,494 47,799,564

(q) Land and Infrastructure Development ReserveOpening Balance 1,328,000 1,328,000 0Amount Set Aside / Transfer to Reserve 2,747 35,000 1,328,000Amount Used / Transfer from Reserve (560,395) (328,000) 0

770,352 1,035,000 1,328,000

TOTAL CASH BACKED RESERVES 32,674,711 49,418,524 51,965,125

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11. RESERVES - CASH BACKED (CONTINUED)All of the reserve accounts are supported by money held in financial institutions andmatch the amounts shown as restricted cash in this financial report.

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

Leave Reserve - to be used to fund annual and long service leave requirements.

Plant Reserve - to be used to implement the Shire's Plant Replacement Program.

Waste Disposal Reserve - to be used for maintenance or capital expenditure at Browns Range Refuse Site.

Property Infrastructure Reserve - to be used to contribute to replacement or major upgrades on Shire of Carnarvon ablutions.

Coral Bay Tip Reserve - to be used for maintenance and capital costs associated with Coral Bay Refuse Site.

Staff Housing Reserve - to be used for major maintenance and capital purchase with respect to staff housing.

Civic Centre Reserve - to be used for major building and equipment upgrades to Carnarvon Civic Centre.

I.T Replacement Reserve - to be used to fund the Shire of Carnarvon Information Technology Strategy.

Airport Reserve - to be used to contribute to capital costs in relation to the Carnarvon Airport.

Surge/Fascine Wall Reserve - to be used for capital upgrade costs associated with the Fascine Wall.

Flood Mitigation Reserve - to be used to finance Council's obligations with respect to the Flood Mitigation Strategy.

Town Planning Scheme Review Reserve - to be used to contribute to funding town planning scheme reviews, new scheme & relevant TP purposes.

Fascine Maintenance Reserve - to be used to contribute to funding the fascine dregding program.

OTC/NASA Reserve - to be used for the development & conservation of the OTC site.

Blowholes Reserve - to be used to assist with the removal os shack debris and post-demolition rehabilitation ofshack area.

Unspent Grants and Contributions Reserve - to be used to isolate grants and contributions for specific purposes to be spent at a later date or in subsequent years(s)

Land and Infrastructure Development Reserve - the purchase of land and development of infrastructure within the Shire of Carnarvon.

The Unspent Grants and Contributions Reserve is expected to be utilised in 2013/2014. All otherReserves are not expected to be used within a set period as further transfers to the reserveaccounts are expected as funds are utilised.

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12. RESERVES - REVALUATION SURPLUS 2013 2012$ $

Revaluation surpluses have arisen on revaluationof the following classes of non-current assets:

(a) RoadsOpening balance 16,705,444 16,705,444Revaluation Increment 0 0Revaluation Decrement 0 0

16,705,444 16,705,444

(b) Plant & EquipmentOpening balance 0 0Revaluation Increment 783,753 0Revaluation Decrement 0 0

783,753 0

TOTAL ASSET REVALUATION SURPLUS 17,489,197 16,705,444

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13. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash and cash equivalents,net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled tothe related items in the statement of financial position as follows:

2013 2013 2012$ Budget $

$

Cash and Cash Equivalents 45,949,004 49,918,524 58,743,345

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

Net Result (11,640,472) 2,568,199 60,317,238

Depreciation 5,219,877 4,772,180 4,588,516(Profit)/Loss on Sale of Asset 8,760 0 (799,701)(Increase)/Decrease in Receivables (207,882) 2,901,316 1,459,269(Increase)/Decrease in Inventories (37,974) (120,000) (5,253)Increase/(Decrease) in Payables 8,737,681 (125,000) 3,741,600Increase/(Decrease) in Employee Provisions 46,868 (50,000) (32,154)Grants/Contributions for the Development of Assets (13,360,745) (8,037,048) (55,541,671)Initial Recognition of Assets due toChange to Regulations (360,807) 0 0Net Cash from Operating Activities (11,594,694) 1,909,647 13,727,844

(c) Undrawn Borrowing FacilitiesCredit Standby ArrangementsBank Overdraft limit 200,000 200,000Bank Overdraft at Balance Date 0 0Credit Card limit 40,000 40,000Credit Card Balance at Balance Date (2,092) (2,904)Total Amount of Credit Unused 237,908 237,096

Loan FacilitiesLoan Facilities - Current 100,403 94,075Loan Facilities - Non-Current 362,555 462,958Total Facilities in Use at Balance Date 462,958 557,033

Unused Loan Facilities at Balance Date 0 0

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14. CONTINGENT LIABILITIES

Council is not aware of any contingent liabilites as at 30th June 2013.

2013 201215. CAPITAL AND LEASING COMMITMENTS $ $

(a) Finance Lease Commitments

The Council has no financial lease commitments as at 30 June 2013.

(b) Operating Lease Commitments

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

Payable:- not later than one year 124,924 137,590- later than one year but not later than five years 46,523 165,083

171,447 302,673

(c) Capital Expenditure Commitments

Contracted for:- capital expenditure projects 0 1,745,496

Payable:- not later than one year 0 1,745,496

The capital expenditure project outstanding at the end of the previous reporting period representsthe construction of the Robinson Street Redevelopment.

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16. JOINT VENTURE

The Shire of Carnarvon does not have a joint venture arrangement as at 30 June 2013.

17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY

2013 2012$ $

Governance 1,208,123 875,874Law, Order, Public Safety 202,920 211,813Health 32,493 42,290Education and Welfare 44,317 33,725Housing 1,236,735 1,247,281Community Amenities 6,471,832 6,512,410Recreation and Culture 36,798,396 25,116,260Transport 59,323,423 61,413,152Economic Services 4,058 4,203Other Property and Services 1,919,577 1,403,161Unallocated 49,235,332 61,783,282

156,477,206 158,643,451

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2013 2012 201118. FINANCIAL RATIOS

Current Ratio 1.118 1.225 1.821Asset Sustainability Ratio 2.691 3.576 1.728Debt Service Cover Ratio (153.189) 73.004 6.227Operating Surplus Ratio (2.833) 0.600 (0.572)Own Source Revenue Coverage Ratio 0.219 0.496 0.456

The above ratios are calculated as follows:

Current Ratio current assets minus restricted assetscurrent liabilities minus liabilities associated

with restricted assets

Asset Sustainability Ratio capital renewal and relacement expendituredepreciation expense

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

Operating Surplus Ratio operating revenue minus operating expenseown source operating revenue

Own Source Revenue Coverage Ratio own source operating revenueoperating expense

Notes:

2013

Debt Service Cover Ratio 21.339Operating Surplus Ratio (0.282)Own Source Revenue Coverage Ratio 0.505

Information relating to the Asset Consumption Ration and the Asset Renewal Funding Ratio can be found at Supplementary Ratio Information on Page 59 of this document.

Three of the 2013 ratios disclosed above are distorted by:

These items form part of operating revenue and expense, and have been included in the calculations above. If they were ignored, the calculations disclosed in the 2013 column above would be as follows:

a) item of significant revenue totalling $360,807 relating to the initial recognition of Land under the Shire’s control in accordance with amendments to the Financial Management Regulations (refer to Notes 1(g) and 2(a)(ii) for further details). This item of significant revenue is considered to be "one-off" and is non-cash in nature.

b) item of significant expense totalling $22,857,993 relating to flood mitigation work (refer to Note 2(a)(i) for further details) of which the corresponding revenue was recognised in 2012.

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19. TRUST FUNDS

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

Balance Amounts Amounts Balance1-Jul-12 Received Paid 30-Jun-13

$ $ ($) $

Civic Centre Hire 3,929 7,200 (5,000) 6,129Footpath Deposits 21,299 698 (1,000) 20,997Private Works Deposits 1,000 0 0 1,000Shire Facility Deposits 4,100 3,550 (3,250) 4,400Public Open Space 110,374 0 0 110,374Other Sundry Trust 2,438 0 0 2,438Suspence 4,748 167 (334) 4,581Unclaimed Monies 1,242 0 0 1,242Carnarvon Artificial 281 0 0 281Civic Centre Airconditioning 51 0 0 51Perth Glory 12,500 0 0 12,500BCTIF 1,808 44,135 (45,642) 301Nomination Deposits 0 320 (320) 0Footpath Cash in Lieu 0 7,200 0 7,200

163,770 171,494

20. DISPOSALS OF ASSETS - 2012/13 FINANCIAL YEAR

The following assets were disposed of during the year.

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

$ $ $ $ $ $Law, Order, Public SafetyPlant and Equipment (5,735) 0 0 0 (5,735) 0Recreation & CulturePlant and Equipment 0 0 0 0 0 0TransportPlant and Equipment 0 0 0 0 0 0Other Property & ServicesLand and Buildings 6,157 0 10,000 0 3,843 0Plant and Equipment (6,868) 0 0 0 (6,868)

(6,446) 0 10,000 0 (8,760) 0

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21. INFORMATION ON BORROWINGS

(a) Repayments - Debentures

Principal New Principal Principal Interest1-Jul-12 Loans Repayments 30-Jun-13 Repayments

$ $ Actual Budget Actual Budget Actual BudgetParticulars $ $ $ $ $ $HousingLoan 213 Staff Housing 90,524 8,109 8,109 82,415 82,415 5,432 5,287Recreation & CultureLoan 211 Library/Art Gallery 380,155 58,838 58,838 321,317 321,317 24,973 25,287TransportLoan 212 Roller 86,354 27,128 27,128 59,226 59,226 4,423 4,700

557,033 0 94,075 94,075 462,958 462,958 34,828 35,274

(*) Self supporting loan financed by payments from third parties.All other loan repayments were financed by general purpose revenue.

(b) New Debentures - 2012/13

Nil.

(c) Unspent Debentures

Nil.

(d) Overdraft

Council established an overdraft facility of $200,000 in 1997 to assist with short term liquidity requirements.The balance of the bank overdraft at 1 July 2012 and 30 June 2013 was Nil.

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22. RATING INFORMATION - 2012/13 FINANCIAL YEAR

(a) RatesRate in Number Rateable Rate Interim Back Total Budget Budget Budget Budget

$ of Value Revenue Rates Rates Revenue Rate Interim Back TotalProperties $ $ $ $ $ Revenue Rate Rate Revenue

RATE TYPE $ $ $ $Differential General Rate

GRV Valued Properties 7.0573 1,748 36,891,247 2,603,526 (9,747) 0 2,593,779 2,593,430 10,000 0 2,603,430UV Mining 11.5000 32 889,304 102,270 (3,997) (1,107) 97,166 79,905 0 500 80,405UV Pastoral 5.0655 31 3,921,489 198,643 (4,559) 0 194,084 196,136 0 0 196,136UV Intensive Horticulture 0.6312 166 60,007,921 378,770 928 0 379,698 378,125 0 0 378,125

Sub-Totals 1,977 101,709,961 3,283,209 (17,375) (1,107) 3,264,727 3,247,596 10,000 500 3,258,096Minimum

Minimum Rates $GRV Valued Properties 690 314 2,215,203 216,660 0 0 216,660 218,040 0 0 218,040UV Mining 350 27 29,213 9,450 0 0 9,450 9,100 0 0 9,100UV Pastoral 330 2 1,499 660 0 0 660 660 0 0 660UV Intensive Horticulture 650 2 36,751 1,300 0 0 1,300 650 0 0 650

Sub-Totals 345 2,282,666 228,070 0 0 228,070 228,450 0 0 228,450

3,492,797 3,486,546

Specified Area Rate (refer note 23) 302,403 281,511

Total Rates 3,795,200 3,768,057

Total Amount Raised from General Rate

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22. RATING INFORMATION - 2012/13 FINANCIAL YEAR (CONTINUED)

(b) Information on Surplus/(Deficit) 2013 2013 2012 Brought Forward (30 June 2013 (1 July 2012 (30 June 2012

Carried Brought CarriedForward) Forward) Forward)

$ $ $

Surplus/(Deficit) - Rate Setting Statement 2,415,161 1,964,303 1,964,303

Comprises:

Cash - Unrestricted 2,000 2,000 2,000Cash - Restricted 13,272,293 6,776,220 6,776,220Investments - Restricted 32,674,711 51,965,125 51,965,125Rates - Current 295,047 248,962 248,962Sundry Debtors 1,566,432 457,183 457,183Accrued Income 82,957 2,234,298 2,234,298Bond Staff Housing 3,010 3,010 3,010GST Receivable 1,205,593 0 0ESL Receivable 25,902 22,200 22,200Inventories - Fuel and Materials 47,583 9,609 9,609

Less:

Reserves - Restricted Cash - Reserves (32,674,711) (51,965,125) (51,965,125) - Restricted Cash 0 (2,427,984) (2,427,984)

Sundry Creditors (13,919,286) (1,270,461) (1,270,461)Accrued Interest on Debentures (2,805) (3,505) (3,505)Accrued Salaries and Wages (93,080) (106,300) (106,300)PAYE & FBT Payable (70,485) (65,413) (65,413)GST Payable 0 (3,915,516) (3,915,516)Current Employee Benefits Provision (698,696) (628,873) (628,873)

Add back Leave Liability not required to be funded

698,696 628,873 628,873

Surplus/(Deficit) 2,415,161 1,964,303 1,964,303

Difference:

There was no difference between the Surplus/(Deficit) 1 July 2012 Brought Forward positionused in the 2013 audited financial report and the Surplus/(Deficit) Carried Forward positionas disclosed in the 2012 audited financial report.

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23. SPECIFIED AREA RATE - 2012/13 FINANCIAL YEAR

Rate in Basis Rateable Rate Budget Applied Budget$ of Value Revenue Rate to Costs Applied

Rate $ $ Revenue $ to Costs $ $

Fruit FlyUV Plantation 0.2871 UV 58,335,800 177,747 167,490 177,747 167,490Coral Bay Refuse SiteGRV Coral Bay 4.8881 GRV 2,218,060 118,666 108,421 118,666 108,421Fascine MaintenanceGRV Water front Properties 1.2247 GRV 471,890 5,990 5,600 5,990 5,600

302,403 281,511 302,403 281,511

Fruit Fly: The specified area rate for Fruit Fly is applied to all plantation properties within the plantation ward for the purpose of contributing to the cost of Carnarvon's compulsory fruit fly baiting scheme. The proceeds from this are applied in full to the scheme. There is no anticipated unspent surplus from this scheme and therefore no transfer to reserve fund at year end. The Carnarvon Fruit Fly Baiting Committee regulates operations.The Shire of Carnarvon has a policy to cater for this activity.

Coral Bay Refuse Site: The specified area rate for Coral Bay Refuse Site is to contribute to the maintenance and future deliberations of the Coral Bay refuse site. The rate will be applied to all rateable properties within. Coral Bay. The proceeds of the rate are applied in full to the Coral Bay refuse site.There is no anticipated unspent surplus The proceeds of the rate are applied in full to the Coral Bay refuse site from this scheme and therefore no transfer to reserve fund at year end.

Waterfront Properties: The specified area rate for waterfront properties applies to all properties with direct access to the Fascine. At present, all rates raised are transferred to the Fascine Maintenance reserve to be used for periodic maintenance of the Fascine, including dredging and tramway bridge operations.

24. SERVICE CHARGES - 2012/13 FINANCIAL YEAR

The Council has not raised Service Charges during the 2012/2013 financial year.

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25. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS- 2012/13 FINANCIAL YEAR

Council has not granted any discounts, incentives, concessions or write offs during 2012/2013.

26. INTEREST CHARGES AND INSTALMENTS - 2012/13 FINANCIAL YEAR

Interest Admin. Revenue BudgetedRate Charge $ Revenue

% $ $Interest on Unpaid Rates 11.00% N/A 65,070 20,000Interest on Instalments Plan 5.50% N/A 14,029 10,000Charges on Instalment Plan N/A 4 4,804 4,000

83,903 34,000

Ratepayers had the option of paying rates in four equal instalments, due on 8th October 2012,6th December 2012, 6th February 2012 and 9th April 2013. Administration charges andinterest applied for the final three instalments.

2013 201227. FEES & CHARGES $ $

Governance 109 27,084General Purpose Funding 34,766 158Law, Order, Public Safety 16,176 14,517Health 46,738 34,487Education and Welfare 1,160 0Housing 0 11,455Community Amenities 1,418,944 1,302,884Recreation and Culture 183,770 194,701Transport 853,639 923,450Economic Services 396,562 110,836Other Property and Services 38,666 104,753

2,990,529 2,724,325

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

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28. GRANT REVENUEGrants, subsidies and contributions are included as operating revenues in the Statement ofComprehensive Income:

2013 2012By Nature and Type: $ $Operating Grants, Subsidies and Contributions 6,154,236 12,951,638Non-Operating Grants, Subsidies and Contributions 13,360,745 55,541,671

19,514,981 68,493,309By Program:Governance 142,918 32,772General Purpose Funding 4,799,017 5,337,804Law, Order, Public Safety 137,927 88,251Health 709 0Education and Welfare 402,431 380,428Housing 0 10,307Community Amenities 13,398 738,455Recreation and Culture 5,903,484 1,882,289Transport 7,937,076 57,971,017Economic Services 162,912 4,286Other Property and Services 15,109 2,047,700

19,514,981 68,493,309

2013 2013 201229. ELECTED MEMBERS REMUNERATION $ Budget $

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

Meeting Fees 60,583 70,000 61,833President’s Allowance 20,000 20,000 20,000Deputy President’s Allowance 5,000 5,000 5,000Travelling Expenses 3,999 4,000 5,426Telecommunications Allowance 4,158 0 0

93,740 99,000 92,259

30. EMPLOYEE NUMBERS 2013 2012

The number of full-time equivalentemployees at balance date 61 59

31. MAJOR LAND TRANSACTIONS

Council did not have any major land transactions during the 2012/2013 financial year.

32. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Council did not participate in any trading undertakings or major trading undertakings during the2012/13 financial year.

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33. FINANCIAL RISK MANAGEMENT

Carrying Value Fair Value2013 2012 2013 2012

$ $ $ $Financial AssetsCash and cash equivalents 45,949,004 54,738,495 45,949,004 54,738,495Receivables 3,238,209 3,030,327 3,238,209 3,030,327

49,187,213 57,768,822 49,187,213 57,768,822

Financial LiabilitiesPayables 14,085,656 5,361,195 14,085,656 5,361,195Borrowings 462,958 557,033 439,639 526,965

14,548,614 5,918,228 14,525,295 5,888,160

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.

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

2013 2012$ $

Impact of a 1% (*) movement in interest rates on cashand cash equivalents:

- Equity 518,241 153,080 - Statement of Comprehensive Income 518,241 153,080

Council’s objective is to maximise its return on cash 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.

Cash is subject to interest rate risk – the risk that movements in interest rates could affect returns.

Another risk associated with cash 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 investing its funds with recognised Australian Banks.

Notes:

(*) Sensitivity percentages based on management’s expectation of future possible market movements.

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

2013 2012

Percentage of Rates and Annual Charges

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

Percentage of Other Receivables

- Current 96.99% 96.87% - Overdue 3.01% 3.13%

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:

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

Borrowings

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

$ $ $ $ $2013

Payables 14,085,656 0 0 14,085,656 14,085,656Borrowings 129,483 380,148 36,990 546,621 462,958

14,215,139 380,148 36,990 14,632,277 14,548,614

2012

Payables 5,361,195 0 0 5,361,195 5,361,195Borrowings 129,483 454,118 92,503 676,104 557,033

5,490,678 454,118 92,503 6,037,299 5,918,228

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:

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33. FINANCIAL RISK MANAGEMENT (CONTINUED)

(c) PayablesBorrowings (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 2013

PayablesBorrowings

Fixed RateDebentures 0 59,226 0 0 0 403,732 462,958 6.72%Weighted Average Effective Interest Rate 5.96% 6.83%

Year Ended 30 June 2012

PayablesBorrowings

Fixed RateDebentures 0 0 86,354 0 0 470,679 557,033 6.71%Weighted Average Effective Interest Rate 5.96% 6.84%

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.

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SHIRE OF CARNARVONSUPPLEMENTARY RATIO INFORMATIONFOR THE YEAR ENDED 30TH JUNE 2013

RATIO INFORMATION

2013 2012 2011

Asset Consumption Ratio 0.681 N/A N/AAsset Renewal Funding Ratio 2.730 N/A N/A

The above ratios are calculated as follows:

Asset Consumption Ratio depreciated replacement cost of assetscurrent replacement cost of depreciable assets

Asset Renewal Funding Ratio NPV of planned capital renewal over 10 yearsNPV of required capital expenditure over 10 years

The following information relates to thse ratios which only require attestation they have been checked and are supported by verifiable information.

N/A -In keeping with amendments to Local Government (Financial Management) Regulation 50, comparatives for the two preceeding years (being 2012 and 2011) have not been reported as financial information is not available.

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SHIRE OF CARNARVON

3 Francis Street, Carnarvon WA 6701

[email protected] • www.carnarvon.wa.gov.au

Phone: (08) 9941 0000 Fax: (08) 9941 0099

mailto:[email protected]

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

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SHIRE OF CARNARVON ANNUAL REPORT › files › assets › public › ...The Shire of Carnarvon is taking a lead role in progressing aged care in the Carnarvon townsite and have allocated