Financial Management Report - February 2018 · Ellenbrook Bridge $4.6m, Lord Street $1.4m and...

Ordinary Meeting of Council 11 April 2018

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5.2 FINANCIAL MANAGEMENT REPORT - FEBRUARY 2018

Ward: (All Wards) (Financial Services and Rates)

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Stakeholder Relations)

KEY ISSUES

• This report provides Council with the suite of financial management reports in order for Council to monitor the financial performance and position of the City.

• A summary page has been developed that includes high level financial information, commentary and graphical representation from the various statements and schedules included in the report.

• Statements included are Financial Activity, Rate Setting, Cash Flow, Comprehensive Income, Financial Position, Changes in Equity, Capital Jobs, Cash and Investments and Net Current Funding.

• A Debtors Schedule has been included that lists the top 10 non-rate debtors (in value). For privacy purposes the names of the debtors are not included, however the report provides insight into the management of the aged debtors.

It is recommended that Council resolve to note the monthly financial management reports for the period ended 28 February 2018.

BACKGROUND

Section 6.4 of the Local Government Act 1995 requires an annual financial report to be prepared as well as such other financial reports as prescribed.

Regulation 34(1) of the Local Government (Financial Management) Regulations 1996 (the Regulations) requires a local government to prepare each month a statement of financial activity reporting on the income and expenditure, as set out in the annual budget. The statement of financial activity is to be supported by such information as is considered relevant by the local government.

A statement of financial activity and any accompanying documents are to be presented at the next ordinary council meeting following the end of the month to which the statement relates, or to the next ordinary council meeting after that meeting.

In addition under regulation 34(5) of the Regulations each financial year, local government is to adopt a percentage or value, calculated in accordance with Australian Accounting Standards to be used in the statement of financial activity for reporting material variances.


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The City of Swan Financial Management Reports use a materiality threshold to measure, monitor and report on financial performance and position of the City. The materiality threshold adopted by Council, together with the Annual Budget for 2017/2018 is variances greater than 10% of the original adopted budget and a value greater than $10,000.

DETAILS

The financial management report for the period ended 28 February 2018 is included as an attachment to this report.

As the information contained in the Statement of Financial Activity is repeated in the Statement of Comprehensive Income and Financial Position, the analysis of the information is included below.

1. Statement of Comprehensive Income

Actual Revenue from ordinary activities for the year to date is $165.8m, this is below budget by $3.4m.

Expenditure from ordinary activities for the year to date is $96.4m, this is less than budget by $10.6m.

The net result is $83.1m surplus compared to $75.4m budgeted year to date.

2. Statement of Financial Position

Current Assets have decreased by $6.2m compared with January. The reduction mainly occurred within Rates Debtors and Cash and Cash Equivalents.

Capital expenditure, mainly for road infrastructure projects reflected in Work In Progress, has contributed to the increase in Property, Plant and Equipment by $668k for February.

3. Statement of Cash Flows

The report shows Cash and Cash Equivalents at the end of February 2018 with a balance of $180.8m. Cash and Cash Equivalents at the end of February 2017 reflected a balance of $166m.

CONSULTATION

Not applicable

ATTACHMENTS

Financial Report for the period ending 28 February 2018.


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STRATEGIC IMPLICATIONS

Consistent with the City's Strategic Community Plan 2017-2027 Key Result Area - Governance

Objectives: G1.1 - Provide accountable and transparent leadership, and G2.1 - Improve capability and capacity.

Monitoring performance by comparison of budget and actual is an essential management tool to ensure financial performance within acceptable pre determined limits.

STATUTORY IMPLICATIONS

Section 6.4 of the Local Government Act 1995 and regulation 34(1) of the Local Government (Financial Management) Regulations 1996

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolve to:

1) Note the financial statements and report for the month ended 28 February 2018 in accordance with regulation 34(1) of the Local Government (Financial Management) Regulations 1996.

CARRIED

Financial Report

for the Period Ending

28th February 2018

Contents

1.0 Financial Summary 1.0

2.0 Statements of Comprehensive Income 2.1 By Nature & Type 2.2

By Program 2.3

3.0 Statements of Financial Position & Equity 3.1 Statement of Financial Position 3.2 Statement of Changes in Equity 3.3 4.0 Capital Payment 4.1 Capital Works Schedules 4.2 - 4.8 5.0 Cash and Investments 5.1 Investment Report 5.2 - 5.4 6.0 Debtors Rates Debtors 6.1 Sundry Debtors 6.2 7.0 Statement of Financial Activity 7.1 - 7.3

(With Variance Analysis Commentary) Statement of Financial Activity 7.4 Net Current Funding Position 7.5

Liquidity Over Three Years 7.5

8.0 Other Statutory Reports 8.1 Statement of Cash Flow 8.2

Rate Setting Statement 8.3

1.0

City of Swan - Financial Management SummaryReport for the period ended 28th February 2018

2.0 Statement of Comprehensive Income (Performance)

Year to 28th February 2018 Annual AnnualBudget Bgt Var

$000's %

Revenue 165,768 169,190 -2% 178,061 93%

Expenses (96,355) (106,938) -11% (160,378) 60%

Profit/Loss 69,413 62,252 10% 17,683 393%

Non-operating 13,675 13,166 4% 44,860 30%

Net Result 83,088 75,418 9% 62,543 133%

3.0 Statement of Financial Position2017 2017 2018June January February$000's $000's $000's

Current

Assets 158,756 230,901 224,692

Liabilities 39,521 28,942 29,485

Non Current

Assets 1,566,565 1,574,759 1,575,423

Liabilities 44,996 46,784 46,739

Net Assets 1,640,804 1,729,934 1,723,891

4.0 Capital PaymentsYear to 28th February 2018 Annual Annual

February Actual/Comm Budget Var Budget Bgt Var

$000's $000's % $000's %

Buildings 5,755 13,109 44% 19,664 29%Drainage 3,202 3,116 103% 4,674 69%

Footpaths 673 730 92% 1,095 61%Parks 6,764 8,146 83% 12,219 55%

Roads 18,618 28,970 64% 43,455 43%P&E, Other 12,506 17,121 73% 25,682 49%

Total 47,518 71,193 67% 106,789 44%

5.0 Cash and InvestmentsVolume Held

January February Ave Interest$000's $000's %

Cash 15,479 18,537 1.2%Term Deposits 167,300 162,300 2.6%

Total 182,779 180,837 2.0%

6.0 Debtors January February Change

$000's $000's %Trade Debtors

Current 216 822 281%> 30 Days 104 62 -40%> 60 Days 15 64 327%> 90 Days 698 689 -1%

Total Trade 1,033 1,637 58%Rates Debtors

Rates Debtors 33,875 29,897 -12%Other Debtors 3,192 3,811 19%

Total Debtors 38,100 35,345 -7%

Actual '$000's Budget '$000's Variance

%

The net result at the end of February was $83m, 9% above ytd budget.

Revenue was slightly less than budget by 2%. $2.7m of the 2017/18FAGS grant was received in advance in the prior year, reducing thereceipts for the current year. An adjustment for rates paid in advance andrecognised as revenue in 2016/17, also impacted on revenue.

Operating Expenses were less than budget by $10.6m. $5.6m of this isattributed to Materials & Contracts mostly due to timing differences and$2.6m to Employee Costs due to vacant positions, staff annual leavetaken over the Christmas period and other employee related expenditure.

The favourable variance of $509k for Non-Operating Income is acombination of Non-Operating Grants, Subsides and Contributions andProfit on Disposal of Assets which were above budget by $900k and$287k respectively, being offset by Developer's Contribution Plans whichare below budget by $682k.

At the end of February, the Cash and CashEquivalents balance was $180.8m, which is $2m lowerthan the prior month. Cash inflow is slower in the secondhalf of the year as a high number of rates are paid in thefirst quarter of the financial year.

During the month of February, $11.4m was reinvestedinto term deposits and $5m was redeemed due to liquidityrequirements.

The City's return on investment was 2.41% pa vs thebank bill index of 1.73% pa.

Current Assets have decreased by $6.2m comparedwith January. The reduction mainly occurred within RatesDebtors and Cash and Cash Equivalents.

A decrease in Trade and Other Receivables and Cashand Cash Equivalents has contributed to the decrease inthe current ratio to 5.62.

Capital expenditure, mainly for road infrastructureprojects reflected in Work In Progress, has contributed tothe increase in Property, Plant and Equipment by $668kfor February.

1.56

6.02 5.62

1.00 1.00 1.00

- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

June 17 Jan-18 Feb-18

C.Assets C.Liabilities

Total expenditure for capital works was $47.5m with $32.4m being actualcosts and $15.1m being committed costs.

Buildings have expended $5.8m against ytd budget of $13.1m. TheAquatic Centre at the Altone Park Leisure Centre underwent renovationworks, contributing $1.5m to total spend for Buildings.

Roads have realised $18.6m of $29m ytd budget. Significant expenditurewas noted for: Hazelmere Industrial Area Infrastructure Road $2.9m,Ellenbrook Bridge $4.6m, Lord Street $1.4m and Stoneville Road $1m.

Within Parks, total spend at the end of February was $6.8m against ytdbudget of $8.1m. Works have progressed for the following projects whichhave recorded significant expenditure: Chequers Club Bore/Irrigation $1.3m,Caversham Oval$780k and Midland Oval Master Plan $887k

The One Council Implementation project has spent $1.4m of its $2.6mannual budget.

0

200

400

600

800

1,000

Current > 30Days

> 60Days

> 90Days

$000

's

Trade Debtors

January February

AAA 33%

AA+ to AA- 14%

A+ to A-

53%

Two large invoices raised in February were the mainreason for Current Debtors going up by $606k. 30 DayDebtors have decreased by 40% as a result ofoutstanding invoices being paid as well as unpaidinvoices shifting to 60 Days. A 1% decrease hasoccurred within the 90 Days due to payments beingreceived.

There was a reduction of $4m on the prior month'sclosing balance for Rates Debtors, excludingEmergency Services Levy. A greater decrease isexpected in March as the fourth instalment and interimnotices are due on the 16th of March 2018.

2.1

AASB 101.8 requires a financial report to include a "Statement of Comprehensive Income". The definition of "IncomeStatement" at Financial Management Regulation 3 is "income statement (or equivalent) that meets therequirements of Australian Accounting Standards for income statements". By virtue of the changes to terminology inAASB101, we now refer to the "income statement" as the "statement of comprehensive income" as that is the"equivalent" in the context of the Australian Accounting Standards.

The Statements of Comprehensive Income summarise the operating revenue and expenditure for a particular periodof a financial year. The principle aim of these financial statements are to report on the performance of the City inmeeting the approved budgets in both revenue and expenditure terms. An important aspect of The Statements ofComprehensive Income is the exclusion of capital and infrastructure project expenditure. There are two versionsthat are prepared with each presenting information in two distinct forms.

The first Statement of Comprehensive Income is by Nature & Type as prescribed by the Financial ManagementRegulations Schedule 1 Part 2 that ensures compliance with statutory requirements. The report categorisesrevenues and expenses into easy to understand types based on the nature of the individual revenue or expense. Forexample employee costs are made up of not only salaries and wages but also casual labour, labour hire, staffrecruitment, staff training etc.

The second Statement of Comprehensive Income is by Program. Since the withdrawal of AAS 27, AASB 1052.11(b)now governs the disclosure requirements relating to income and expenditure by program (function / activity). Thereport aims to give the reader information on what activity within the community revenue is generated from andwhere money is spent. For example the General Purpose Funding program is where most revenue is generated fromrates, the main source of local government funds. In regards to expenditure the program titled Recreation & Cultureoften has the greatest outlay. This program includes costs associated with operating Libraries, Leisure Centres,Street Lighting, maintaining Parks & Reserves and City owned Buildings.

Both reports calculate variances based on the Current Revised Budget. The actual figures for the year to date arecompared to the year to date current revised budget to present a monetary variance as well as a the variance shownas a percentage of the budget.

The following report on significant variances refers to those variances in the Statement of Comprehensive Income byNature and Type.

2.0 Statements of Comprehensive Income2.0 Statements of Comprehensive Income

2.2

Original Budget

2017/18

Revised Budget

2017/18

YTD CURRENTREVISED BUDGET@ 28 FEBRUARY

2018

YTD ACTUAL@ 28 FEBRUARY

2018$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenue from Ordinary Activities122,963,766 122,963,766 Rates Revenue 122,667,966 121,037,599 (1,630,367)

1,212,300 1,212,300 Service Charges 1,212,300 1,226,788 14,48837,490,460 37,490,460 Fees & Charges 32,670,963 33,244,082 573,11910,069,900 10,096,400 Operating Grants, Subsidies & Contributions 8,083,569 5,552,750 (2,530,819) U 31%

5,364,050 5,364,050 Interest Earnings 3,934,306 4,039,514 105,208923,340 933,790 Other Revenue 620,822 667,659 46,837

178,023,816 178,060,766 Sub-Total Ordinary Revenue 169,189,926 165,768,392 (3,421,533)

Expenses from Ordinary Activities(76,251,490) (76,559,670) Employee Costs (50,535,641) (47,921,569) 2,614,072(36,884,430) (37,177,470) Materials & Contracts (25,092,485) (19,437,945) 5,654,539 F 23%

(6,985,990) (6,985,990) Utility Charges (4,524,240) (4,051,083) 473,157 F 10%(34,877,410) (34,877,410) Depreciation on Non-Current Assets (23,251,607) (22,701,595) 550,012

(2,202,850) (2,202,850) Interest Expenses (1,468,567) (1,088,777) 379,790 F 26%(604,260) (604,260) Insurance Expenses (805,467) (133,917) 671,550 F 83%

(1,970,172) (1,970,262) Other Expenses (1,260,501) (1,020,581) 239,920 F 19%

(159,776,602) (160,377,912) Sub-Total Ordinary Expenses (106,938,507) (96,355,466) 10,583,040

18,247,214 17,682,854 Ordinary Activities 62,251,419 69,412,926 7,161,507

Add Non-Ordinary Activities8,954,380 9,385,870 Non-Operating Grants, Subsidies & Contributions 7,197,963 8,097,633 899,669 F (12%)

18,250,000 18,250,000 Non-Operating Gifted Assets from Developers: Other - - -7,689,610 7,689,610 Developer Contribution Plans: Cash 5,126,407 4,444,501 (681,906) U 13%4,878,730 4,878,730 Developer Contribution Plans: In Kind - - -

(1,606,700) (1,606,700) Land Ceded to the Crown - - -1,262,960 1,262,960 Profit / (Loss) on Disposal of Assets 841,973 1,128,502 286,528 F (34%)

- - Profit / (Loss) on Impairment of Investments - 3,939 3,9395,000,000 5,000,000 Unrealised Gain from Other Financial Assets: EMRC - - -

62,676,194 62,543,324 Net Result 75,417,765 83,087,501 7,669,74062,676,194 62,543,324 Total Comprehensive Income 75,417,765 83,087,501 7,669,740

Financial Ratios 2015 2016 2017 Current MonthOPERATING SURPLUS RATIO 22.00% 23.00% 26.00%

DEBT SERVICE COVER RATIO 13.73 8.93 9.93

OWN SOURCE REVENUE COVERAGE RATIO 1.10 1.15 1.16

STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE CITY OF SWAN

FOR THE PERIOD 1 JULY 2017 to 28 FEBRUARY 2018

The Own Source Revenue Coverage Ratio measures the local government's ability to cover operating expenses from own source revenue. The higher the ratio, the more self reliant the City will be. This allows greater flexibility as less external funds are required for operational purposes. A ratio above 0.90 is considered low risk and less than 0.60 high risk.

The Debt Service Cover Ratio measures the ability to service debt. Also known as 'debt coverage ratio', this is the ratio of cash available for debt servicing to interest, principal and lease payments from the operations of the City. A ratio below 2.00 should be monitored carefully. A ratio above 5.00 is considered low risk. The higher the ratio, the better the City's financial capacity to meet the debt servicing commitments.

43.32%

18.49

1.66

The Operating Surplus Ratio highlights the extent of the operating surplus (deficit) relative to the revenues of the Council. This is an indicator of the extent to which revenue raised cover operational expenses and is available for capital funding purposes. The higher the ratio the more financial capacity to deal with asset renewal before reliance on external sources of revenue. A ratio above 15% is considered low risk - an indication that own source income is available to fund capital expenditure initiatives over and above depreciation. A ratio below 0% is considered high risk. The year to date ratios will vary considerably from year end results.

2.3

Original Budget

2017/18

Revised Budget

2017/18

YTD CURRENTREVISED BUDGET@ 28 FEBRUARY

2018


2018$ Variance

VARNOTE

% VAR / CURRENT BUDGET

Revenues from Ordinary Activities133,778,476 133,778,476 General Purpose Funding 130,687,828 127,349,939 (3,337,889)

159,710 159,710 Governance 101,286 220,990 119,704 F (118%)2,330,330 2,330,330 Law Order & Public Safety 2,075,469 1,928,315 (147,154)

267,000 267,000 Health 178,000 299,520 121,520 F (68%)4,329,660 4,329,660 Education & Welfare 3,649,060 3,235,588 (413,472) U 11%

60,000 60,000 Housing 40,000 41,472 1,47223,444,130 23,444,130 Community Amenities 22,994,163 23,480,450 486,286

7,105,090 7,137,490 Recreation & Culture 4,852,690 4,903,753 51,0631,894,300 1,898,850 Transport 1,441,350 1,364,007 (77,343)1,660,000 1,660,000 Economic Services 1,173,333 1,236,050 62,7172,995,120 2,995,120 Other Property & Services 1,996,747 1,708,309 (288,438) U 14%

178,023,816 178,060,766 Sub-Total Revenue 169,189,926 165,768,392 (3,421,533)

Expenses from Ordinary Activities Excluding Borrowing Costs

(2,624,696) (2,624,696) General Purpose Funding (1,640,963) (1,566,304) 74,659(13,001,821) (13,306,231) Governance (8,789,536) (6,814,886) 1,974,650 F 22%

(6,242,648) (6,200,548) Law Order & Public Safety (4,121,655) (3,959,368) 162,287(1,847,676) (1,848,526) Health (1,232,634) (1,176,150) 56,483(9,761,478) (9,692,618) Education & Welfare (6,485,291) (5,586,299) 898,992 F 14%

(109,399) (109,399) Housing (72,933) (59,846) 13,086 F 18%(26,227,492) (26,109,782) Community Amenities (17,329,949) (15,936,042) 1,393,907(54,220,840) (54,557,070) Recreation & Culture (36,631,691) (34,842,471) 1,789,219(33,722,432) (33,701,112) Transport (22,411,966) (18,573,165) 3,838,801 F 17%

(6,357,420) (6,359,370) Economic Services (4,240,229) (3,578,332) 661,898 F 16%(3,457,850) (3,665,710) Other Property & Services (2,513,093) (3,173,826) (660,733) U (26%)

(157,573,752) (158,175,062) Sub-Total Non-Borrowing Expense (105,469,939) (95,266,690) 10,203,249

Borrowing Costs Expense(533,280) (533,280) Governance (355,520) (298,987) 56,533 F 16%(802,680) (802,680) Recreation & Culture (535,120) (344,512) 190,608 F 36%(434,420) (434,420) Transport (289,613) (204,409) 85,204 F 29%

(14,500) (14,500) Economic Services (9,667) - 9,667 F 100%(417,970) (417,970) Other Property & Services (278,647) (240,868) 37,779 F 14%

(2,202,850) (2,202,850) Sub-Total Borrowing Costs (1,468,567) (1,088,776) 379,790

18,247,214 17,682,854 Net Operating Result 62,251,419 69,412,926 7,161,508

Non-Operating Grants, Subsidies & Contributions12,568,340 12,568,340 Governance 5,126,407 4,444,501 (681,906) U (13%)

677,630 707,630 Law Order & Public Safety 481,753 30,000 (451,753) U (94%)267,300 267,300 Education & Welfare 178,200 96,660 (81,540) U (46%)

1,537,500 1,880,570 Recreation & Culture 534,737 3,151,500 2,616,763 F 489%24,721,950 24,780,370 Transport 6,003,273 4,819,472 (1,183,801) U (20%)39,772,720 40,204,210 12,324,370 12,542,133 217,763

Land Ceded to the Crown(236,237) (236,237) Recreation & Culture - - -

(1,370,463) (1,370,463) Transport - - -(1,606,700) (1,606,700) - - -

Profit/(Loss) on Disposal of Assets1,047,700 1,047,700 Recreation & Culture 698,467 694,187 (4,280)

215,260 215,260 Transport 143,507 434,178 290,671 F 203%1,262,960 1,262,960 841,973 1,128,502 286,528

Profit/(Loss) on Impairment of Investments- - General Purpose Funding - 3,939 3,939

Unrealised Gain from Other Financial Assets: EMRC5,000,000 5,000,000 General Purpose Funding - - -

62,676,194 62,543,324 Net Result 75,417,765 83,087,502 7,669,74262,676,194 62,543,324 Total Comprehensive Income 75,417,765 83,087,502 7,669,742


STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM CITY OF SWAN

3.1

Description

2. Statement of Change in Equity

Financial Ratios 2015 2016 2017 Current MonthCURRENT RATIO 1.67 1.34 1.74 5.62

QUICK RATIO 1.67 1.34 1.73 5.60

UNTIED CASH TO TOTAL CREDITORS 5.50 2.72 3.07 28.11

1. Statement of Financial Position

AASB 101 requires all Councils to prepare a Statement of Financial Position, which discloses the assets, liabilities and equity ofthe Council as at the reporting date. The ratepayer equity in the Council can be calculated by deducting total liabilities from totalassets.

The purpose of the Statement of Financial Position is to provide a "snap - shot" of the overall financial position of the Council asat a particular date. An entity shall present current and non-current assets, and current and non-current liabilities, as separateclassifications on the face of its balance sheet and on the basis of liquidity. Subject to special requirements for revaluation ofvarious classes of assets, accepted accounting practice includes well defined accounting principles. This convention dictates thatan asset represents the value of an investment acquired to provide future economic benefit to an entity. The future economicbenefits may be in the form of cash or cash equivalents or in the case of not-for-profit (including public sector) entities, theeconomic benefits are derived from meeting the entities objectives of providing goods and services.

Councils are required by AASB 101 to prepare a Statement of Changes in Equity and include it in the Financial Statements. TheStatement of Changes in Equity reconciles the opening and closing balances of each class of the local government's equity overthe reporting period. It provides a summary of causes of the changes in equity and identifies specifically the changes incomposition of the local government's equity.

A Quick Ratio measures the short - term debt paying ability and the liquid position of the City of the Swan and the ability to pay its immediate debts with restricted assets and inventories removed from the calculation. The ratio should be greater than 1.00 (100%).

This ratio assesses the City's ability to meet immediate commitments from readily available cash. Trade creditors include orders for goods and services that have been received but not paid and any amount owing for GST. The higher the ratio the better placed Council is to pay its Creditors. This ratio is always at its lowest point at the end of the financial year and the beginning of the new financial year as much of the cash reserves of the City has been expended by this time and collection of rates revenue is yet to accelerate. This ratio has improved over the last couple of years with an improvement in net funds available at the end of the year.

A Current Ratio shows short - term paying ability with restricted assets removed from the current assets. It relates to the immediate financial sustainability of Council. A ratio greater than 1.00 (100%) indicates Council has more current assets than current liabilities. If less than 1.00 (100%), current liabilities are greater than current assets and there may be a short term funding issue.

3.0 Statement of Financial Position & Equity

3.2

ACTUAL @28 FEBRUARY 2018

ACTUAL @30 JUNE 2017

Current AssetsCash and cash equivalents 180,837,342 137,263,976Trade and other receivables 35,344,629 12,020,193Assets held for sale 7,847,019 7,847,019Inventories 309,070 263,351Other Assets 354,070 1,361,018

Total: Current Assets 224,692,131 158,755,558

Non Current AssetsTrade and other receivables 2,886,036 2,557,676Other Financial Assets 123,809 123,809Property, plant and equipment 1,505,337,875 1,496,808,837Interest in Joint Venture 67,074,404 67,074,404

Total: Non Current Assets 1,575,422,124 1,566,564,726

Total Assets 1,800,114,255 1,725,320,284

Current LiabilitiesShort term borrowings 2,354,063 6,306,981Trade and other payables 11,797,515 19,709,420Income in advance 1,775,451 -Provisions 13,557,610 13,504,458

Total: Current Liabilities 29,484,639 39,520,859

Non Current LiabilitiesLong term borrowings 40,678,507 40,678,507Trade and other payables 4,177,168 2,763,739Provisions 1,882,848 1,553,590

Total: Non Current Liabilities 46,738,522 44,995,836

Total Liabilities 76,223,163 84,516,695

NET ASSETS 1,723,891,093 1,640,803,589

Equity AccountsAccumulated Surplus 1,035,395,003 962,366,880Asset Revaluation Reserves 579,235,039 579,235,039Cash Backed Reserves 109,261,051 99,201,670

TOTAL EQUITY 1,723,891,093 1,640,803,589

CITY OF SWANSTATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2018

3.3

RETAINEDSURPLUS

ASSET REVALUATION RESERVES

RESERVES CASH / INVESTMENT BACKED

TOTALEQUITY

Balance as at 30 JUNE 2015 801,837,255 448,062,744 83,920,394 1,333,820,394

Net Result 106,487,074 - - 106,487,074

Transfer from Retained Surplus to Revaluation Surplus (13,060,059) 13,060,059 - -

Total Other Comprehensive Income - 2,153,738 - 2,153,738

Transfer from/(to) Reserves (13,278,185) - 13,278,185 -


Net Result 82,383,885 - - 82,383,885

Total Other Comprehensive Income - 115,958,498 - 115,958,498



Net Result 83,087,502 - - 83,087,502

Total Other Comprehensive Income - - - -


Balance as at 28 FEBRUARY 2018 1,035,395,003 579,235,039 109,261,051 1,723,891,093

ADDITIONAL DISCLOSURE ON CASH HOLDINGS, INVESTMENTS, RESERVES & MUNICIPAL FUNDS28-Feb-18 30-Jun-17

Cash / Investment Backed Reserves

Aged Services Asset Replacement 405,632 282,837

City Asset Replacement 10,274,896 8,413,172

Ellenbrook Community Facilities 97,152 271,377

Aveley Community 1,784,917 1,679,857

General Insurance 500,000 500,000

Gravel Pit Rehabilitation 525,262 410,870

Hazelmere/Guildford Drainage 1,142,730 929,841

Midland District Drainage Development 3,158,240 3,898,174

Plant & Equipment Reserve 9,586,350 6,208,660

Waste Management 10,569,992 7,406,909

Employee Entitlements - LSL 9,683,602 7,713,071

Hazelmere Industrial Area Infrastructure - Stage 2 5,794,844 4,053,893

Ellenbrook Bridge 2,010,019 1,955,533

Strategic Development 530,960 3,365,822

Urban Growth Corridor Sub-Regional Contributions

- Brabham (Albion) 18,272,042 16,411,604

- Caversham 6,960,410 7,266,845

- Dayton (West Swan East) 23,076,750 23,420,087

- West Swan West 906,278 -

Other Restricted Assets

- Drainage 69,584 69,584

- Footpath 242,258 242,258

- Malaga Parking 268,000 197,000

- Midland Parking 35,000 35,000

- Ellenbrook Parking 121,535 64,784

- Roadwork 2,752,082 2,530,518 - Unspent Specific Grants - 1,135,987

- Public Art 492,512 737,987

Sub total Cash / Investment Backed Reserves 109,261,051 99,201,672Add: other restricted cash / investment assets (i.e Bonds) 4,177,168 4,109,931Total of restricted cash / investment assets 113,438,218 103,311,605Add: Unrestricted cash / investment assets (i.e. MUNI funds) 67,399,124 33,952,372TOTAL CASH AND CASH EQUIVALENTS / INVESTMENTS 180,837,342 137,263,976

Consisting of: Cash and Cash Equivalents 180,837,342 137,263,976

180,837,342 137,263,976


CITY OF SWANSTATEMENT OF CHANGES IN EQUITY

4.1

Comments

Total expenditure for Robert Street was $888k at the end February, exceeding annual budget of $540k by $186k. A budget adjustment is pending. Construction works for the road are practically complete with handover expected in March 2018.

Stoneville Road has expended $1m against annual budget of $600k. The budget will be adjusted to account for overspending on the project. Asphalting for the intersections was completed in February while installation of the final seal layer and project handover is scheduled for March 2018.

Ellenbrook Bridge recorded expenditure of $1.6m in February resulting in total spend of $4.6m against annual budget of $5.9m. Construction of the bridge is progressing well with completion of works anticipated before the end of the financial year. Site clearing, earthworks and piling for the bridge has been completed and installation of beams will commence in March 2018.

Gnangara Road has utilised $441k of its $450k annual budget with $307k of this being recorded in February. Works which entail the rehabilitation of Gnangara Road/Lord Street Roundabout pavement commenced during February and are progressing. Landscaping for the roundabout is due to commence in May 2018.

4.0 Capital

0

20

40

60

80

100

120

July Aug Sep Oct Nov Dec Jan Feb March April May June

Mill

ions

$

Capital Expenditure - Actual v Budget with Prior Year comparison

Actual 17/18 Budget 17/18

Prior Year Actual Prior Year Budget

0

5

10

15

20

25

30

35

Buildings Drainage Footpaths Parks Roads P&E, Other

Mill

ions

$

YTD Capital Works expenditure Actual & CommittedBudget

Current Budget YTD Expense Current Budget

JobNumber

JobName

FullYearExpense Actual Commited Total

% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

BCW04134 Administration Building 500,000 10,129 20,571 30,700 6

BCW05104 Altone Park Library 185,340 70,909 3,405 74,315 40

BCW05106 Community Facilities 200,000 34,305 136,831 171,137 86

BCW05110 Midland Town Hall Build Imp 360,000 376,673 7,779 384,453 107

BCW05114 Minor Capital Building Projec 125,000 64,761 13,962 78,723 63

BCW05120 Extension to Hamersley House 47,000

BCW05122 Swan Caring Aged Care Facilit 12,730 7,004 4,983 11,986 94 11,070 10,066 91

BCW05130 Midland Library 38,000 32,966 32,966 87

BCW05131 Midland Lotteries 141,620 110,689 36,919 147,608 104

BCW05137 Altone Park Leisure Centre 1,460,500 1,411,107 77,365 1,488,472 102

BCW06110 Ballajura Aquatic Centre 137,860 84,709 9,020 93,729 68

BCW06121 Toilet Building Renewal 26,000 6,028 6,028 23

BCW07103 West Swan Home Supp 30,000

BCW07106 Bellevue Hall 47,000 5,704 5,704 12

BCW07108 Swan Park Recreation Centre 686,163 78,495 10,897 89,391 13

BCW07115 Roof Safety Access Systems 42,000 559 559 1

BCW07116 Airconditioner Renewal Progra 84,800 24,288 22,096 46,384 55

BCW07117 Lock & Key Replacement Progra 354,000 5,141 218 5,359 2

BCW07122 South Ballajura Com Centre 37,500 38,567 38,567 103

BCW07124 Midland Sports Complex 35,000 2,599 2,599 7 40,000

BCW08109 Bullsbrook Waste Transfer Sta 200,000 17,090 3,583 20,673 10

BCW08114 Alice Daveron Centre 60,000

BCW08115 Ballajura Library 50,000

BCW08118 Guildford Library 2,420 1,222 1,710 2,932 121

BCW08120 Midland Youth Services Hub 284,889 229,316 16,462 245,778 86 1,675,000

BCW09102 Bus Shelters 140,000 10,529 30 10,559 8 37,500

BCW09104 Bin Compounds 23,000 16,213 16,213 70

BCW09105 Energy Conservation Measures 142,000 2,325 2,325 2 9,091

BCW09106 Switchboards Renewal 2,000 834 834 42

BCW10101 Asbestos Management Program 132,500 120,710 19,266 139,976 106

BCW10102 Integrated Systems Program 1,585,974 185,504 149,503 335,006 21

BCW10106 Equipment Fire System Safety 16,000 4,546 4,546 28

BCW10110 Guildford Mechanics Institute 47,000

BCW11106 Ellenbrook Leisure Centre 649,000 34,725 209,426 244,151 38

BCW11107 Ellenbrook Resource Centre 50,000 9,850 28,718 38,567 77

BCW11109 Building Disposal 90,000 73,087 73,087 81

BCW11112 Malvern Springs Community Cen 115,000 115,000 115,000 100

BCW12102 Ethel Warren Bullsbrook CC 559,000 108,139 70,259 178,398 32 500,000

BCW13101 Ballajura Place Office 1,611,830 82,625 116,135 198,760 12

BCW13107 Old Mechanical Workshop 109,000

BCW14101 Altone Place Office 1,809,000 41,670 46,956 88,626 5

BCW14103 DCP-Brabham Community Centre 33,750 33,750

BCW14104 Dayton Community Centre 327,020 11,473 11,473 4

BCW14109 Operations Centre 4,424,197 24,714 193,660 218,374 5

BCW14110 Midland/Guildford Cricket Clu 42,000 73,215 73,215 174

BCW15001 Hazelmere Hall 690,000 34,309 255,908 290,216 42 100,000 100,000 100

BCW15002 Koongamia Pavilion 139,500

YTD CAPITAL JOBS SUMMARY REPORT FOR THE PERIOD ENDING 28 FEBRUARY 2018

6/03/2018 10:50:56 AM


JobNumber

JobName


% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

BCW15003 Lowery Park Pavilion 227,000 26,791 61,014 87,805 39

BCW15004 East Gidge Fire Station 303,751 304,440 1,538 305,978 101

BCW15005 District Park Active- Buildin 306,000 13,478 72,191 85,669 28

BCW16101 Stafford Court Training Room 25,000 21,098 21,098 84

BCW16104 Malaga Transfer Station 20,000 250 250 1

BCW16106 PA Midland Youth Hub 64,245 16,675 34,704 51,379 80

BCW16108 Waterhall Park 20,000 807 807 4

BCW16109 PA Bullsbrook Community Centr 33,030

BCW16110 Depot Chemical Shed 110,000 2,484 94,436 96,920 88

BCW17101 Altone Community Hub 50,000 50,000

BCW17102 Chequers Golf Club 30,000

BCW17103 West Gidgegannup Fire Station 50,000

BCW17104 Lilac Hill Public Toilets 274,000 570 570

BCW17105 Ron Jose Park Pavilion 120,000

BCW17106 SV & Eastern Visitor Centre 25,000

BCW17107 West Swan Hall 47,000 9,757 33,936 43,693 93

BCW17108 Guildford Potters 47,000

BCW17109 West Bullsbrook Hall 30,000 8,515 1,200 9,715 32

BCW17110 Recycling Facility Jack Willi 30,000

BCW Building Capital Works 19,663,869 3,855,044 1,899,978 5,755,023 29 198,570 2,334,157 1175

DRN04213 Midland Drainage 100,000 115,582 12,916 128,498 128

DRN07209 Morrison Road/Poynton Ave 185,000 318,970 180 319,150 173

DRN08203 Hazelmere/Guildford Drainage 100,000 53,613 1,650 55,263 55

DRN09203 Bushmead Road 90,000

DRN13203 Ewart Street Midland 1,355 1,355

DRN13209 Other Drainage Upgrades 430,000 227,780 16,504 244,284 57

DRN14202 Beverley Terrace Loader Way 340,000 399,196 31,995 431,191 127

DRN15005 First Avenue 125,000

DRN15012 Bushby Street 776,400 708,291 11,661 719,952 93

DRN15014 Bellevue Heritage Railway 100,000 11,861 13,046 24,907 25

DRN16201 Guildfd Foreshore Restoration 40,000

DRN16203 Byers Road 55,000 75,938 75,938 138

DRN16208 William Street 260,000 286,325 286,325 110

DRN16209 Burgess Street 100,000 99,379 99,379 99

DRN17201 Albert Street 561,000 5 34,676 34,682 6

DRN17202 Alice Street 363,000 221 221

DRN17203 Hackett Street 264,000 418,489 34,095 452,583 171

DRN17204 Kensington Street 133,100

DRN17205 Mount Street 177,100

DRN17206 Sophia Street 94,600

DRN17210 Sanderling Grove 180,000 126,419 126,419 70

DRN17211 Spring Park Road 200,000 201,643 201,643 101

DRN Drainage 4,674,200 2,918,648 283,142 3,201,790 68 0 0 0

FTP06502 Footpaths New 170,000 133,710 31,373 165,083 97

FTP06505 Footpath Replacements 265,000 78,918 78,918 30

FTP09501 Swan Cycle Planning Project 416,850 372,626 7,314 379,940 91 200,000 80,000 40


6/03/2018 10:50:56 AM


JobNumber

JobName


% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

FTP10101 Universal Access - Footpath 34,000 25,293 25,293 74 4,000 4,000 100

FTP16501 Cranleigh Street 162,320

FTP16502 DCP - Suffolk Street 46,900 2,540 21,199 23,740 51

FTP Footpaths 1,095,070 613,087 59,886 672,974 61 204,000 84,000 41

GRP04100 Gravel Pit 20,000 47,237 2,910 50,147 251 152,944

GRP Gravel Pit 20,000 47,237 2,910 50,147 251 0 152,944

PEQ07100 Internal Build P & E 44,000 7,283 2,943 10,226 23

PEQ08104 CCTV - Safer Suburbs 1,138,090 677,630

PEQ10104 Website Development - SVC 27,405 54,810 82,215

PEQ13102 COS Website Maintenance 64,000 12,500 56,000 68,500 107

PEQ14103 User Generated Content System 30,000

PEQ14104 Herne Hill - Telecomunication 677,270 12,665 597,298 609,962 90

PEQ15000 Fire Fighting Assets 40,000 14,325 5,367 19,692 49

PEQ15003 One Council Implementation 2,561,820 985,472 369,436 1,354,908 53

PEQ16101 DCP Software 72,000 26,950 100 27,050 38

PEQ16102 Leisure System Replacement 396,000 15,918 71,789 87,707 22

PEQ16103 Midland Town Hall Sound Syste 300,000 37,352 37,352 12

PEQ16104 Radio Frequency ID Equipment 62,400 65,952 65,952 106

PEQ16105 Sea Containers 96,200 70,543 23,523 94,067 98

PEQ16108 People Counter 5,000 200 200 4

PEQ16111 Waste Management Systems 60,000 32,550 3,450 36,000 60

PEQ17101 Library Services - Futures La 56,490 32,086 32,086 57

PEQ17102 Brigade Equipment Upgrade 30,000 30,000 30,000 100

PEQ Plant & Equipment 5,633,270 1,303,849 1,222,068 2,525,917 45 707,630 30,000 4

PRK04313 Percy Cullen Oval 50,000 15,736 15,736 31 50,000

PRK04324 Residential Street Trees 60,000 27,015 27,015 45

PRK04326 Minor Park Furniture 20,000 13,138 4,792 17,929 90

PRK04328 Rural Street Trees 20,000 4,724 10,104 14,828 74

PRK05304 Parks & Streetscapes Minor 202,000 167,834 15,822 183,656 91

PRK05307 Swan Regional Riverside Park 110,000 2,486 2,486 2 10,000 10,000 100

PRK05309 Tourism Signage 125,000 2,003 90 2,094 2 50,000 24,568 49

PRK05311 Emu Lake Restoration 374,000 7,345 62,492 69,837 19

PRK05317 Playgrounds - Ellenbrook 40,250

PRK05329 Ron Jose Oval 470,000 2,640 2,640 1 50,000 350,000 700

PRK06309 Baskerville Oval 362,000

PRK06318 Playgrounds - Aveley 692,300

PRK07309 Kings Meadow 100,000 53,823 10,863 64,687 65

PRK08302 Bellevue Landscape Upgrade 250,000 246,485 246,485 99

PRK08307 Bushland Fencing 328,000 19,440 39,641 59,081 18 2,000 1,998 100

PRK08308 Gazebo Replacement 206,500 27,404 50,297 77,701 38

PRK08318 Public Art 90,830 22,000 19,158 41,158 45

PRK09302 Chequers Club Bore/Irrigation 1,207,000 1,150,594 134,484 1,285,078 106

PRK09305 City Gateways Project 330,000 279,917 2,660 282,577 86

PRK10102 Playspace Replacemet Pgm 475,000 69,888 182,922 252,810 53 170,000 255,000 150

PRK11101 Regional Open Space - Whitema 40,400 29,913 3,118 33,031 82


6/03/2018 10:50:56 AM


JobNumber

JobName


% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

PRK11102 Reticulation/Hydrozoning 372,000 136,488 102,061 238,549 64

PRK11108 Swan View Oval 146,500 8,120 8,120 6 100,000 100,000 100

PRK13309 Sports Oval Lighting 60,000 41,019 53,173 94,192 157

PRK13311 John Stone Park 10,000 4,860 31,845 36,705 367

PRK14304 Bennett Springs Park 300,000 272,888 3,625 276,513 92 43,436

PRK14307 District Park Active 650,000 184,064 240,201 424,266 65

PRK14310 Midland Oval Master Plan 1,000,000 660,563 226,276 886,839 89

PRK14311 Parks Electrical Infrastructu 267,000 210,695 3,090 213,785 80

PRK14315 Annies Landing Playgrounds 46,000

PRK15006 Dayton Local Park - Passive 350,000 7,957 45,435 53,393 15

PRK15007 Caversham Oval - DCP 200,000 789,345 100 789,445 395

PRK16302 Dayton Neighbourhood Park 1,500,000 8,572 8,572 1

PRK16303 Aveley Outdoor Fitness Equip. 172,500

PRK16305 Koongamia Oval Bore Replaceme 150,000

PRK16308 Sherlock Park 235,000 44,583 44,583 19

PRK16309 PA Ellenbrook DOS South 115,290 89,146 20,110 109,256 95

PRK16310 PA Waterhall Park Playspace 70,000 47,654 6 47,660 68

PRK17301 City of Swan Signage Impmts 50,000

PRK17302 Electronic Bushfire Signs Gid 65,000 64,817 64,817 100

PRK17303 Foreshore Restrn-Woodbridge P 128,000 481,163 7,560 488,723 382

PRK17304 Foreshore Restrn-Loder Way 75,000 9,363 4,335 13,698 18

PRK17305 Foreshore Restrn-Lilac Hill 60,000 102,035 18,017 120,052 200

PRK17306 Foreshore Restrn-Wangalla Brk 90,000 11,985 12,069 24,053 27

PRK17309 Foreshore Restrn-Middle Swan 192,000 68,705 5,403 74,109 39

PRK17310 Foreshore Restrn-St Equestria 70,000 40,804 3,078 43,882 63

PRK17311 Foreshore Restrn-Eveline Rd 60,000 6,611 6,611 11

PRK17312 Central Park Toilets 120,000

PRK17313 Lassen Park 96,000

PRK17314 Gidgegannup Basketball Crt 15,000 10,638 10,638 71

PRK17315 PA Ellenbrook UrbanMur PP Tab 6,725 6,725

PRK Parks 12,218,570 5,175,044 1,588,967 6,764,015 55 432,000 785,001 182

RDN04403 The Promenade 850,000 447,143 447,143 53

RDN04426 Chittering Road 195,000 26,935 121,628 148,564 76 163,330 25,333 16

RDN04433 Lord Street 1,000,000

RDN04446 West Swan Rd/ Millhouse Rd 1,518,600 37,810 37,810 2 826,400 826,400 100

RDN04447 West Swan Road 742,000 52,624 92,317 144,941 20 503,000 200,000 40

RDN04480 Robert Street 540,000 733,833 154,035 887,868 164

RDN05401 Midland Parking 50,000 874 440 1,314 3

RDN05402 Street Lighting Upgrades 412,600 233,287

RDN05405 Traffic Safety Minor Projects 50,000 19,881 19,881 40

RDN05423 Local Road Prog - City Wide 364,500

RDN05457 O'Brien Road 70,000 4,806 47,450 52,256 75

RDN06404 Hepburn Avenue 40,000 40,310 40,310 101 12,175

RDN06410 Charles St/Frederic St 750,200 260,546 52,562 313,107 42 324,800 129,918 40

RDN06420 Bridge Works 156,667

RDN06421 Investigation,Design Projects 150,000 143,980 143,980 96

RDN06450 Lloyd Street 181,470 268,078 268,078 148


6/03/2018 10:50:56 AM


JobNumber

JobName


% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

RDN07402 Local Roads Program -Testing 75,000 39,252 16,432 55,684 74

RDN07403 Contributions For Works To 200,000 15,083 30,000 45,083 23

RDN07429 Stoneville Road 600,000 779,258 238,415 1,017,673 170 600,000

RDN07435 Talbot Road 100,000 4,844 69,086 73,929 74

RDN07441 Blackadder Road 155,000 165,251 16,178 181,430 117

RDN07451 Warbrook Road 563 563 91,149

RDN07452 Lord Street 5,595,389 642,002 711,112 1,353,114 24 510

RDN08441 Campersic Road 375,000 368,937 368,937 98 250,000 200,000 80

RDN09403 Bellefin Drive 120,000 143,758 10,060 153,818 128

RDN09423 Altone Road 500,000 438,540 8,839 447,380 89

RDN09431 Oakover Road 47,000 43,240 43,240 92 31,335 12,533 40

RDN09441 Beach Road 100,000 111,974 111,974 112 100,000 40,000 40

RDN11201 Hazelmere Ind Area Infrast RD 5,051,524 2,397,637 507,618 2,905,255 58

RDN11203 DCP RABWest Swan Rd/Arthur S 570,550 6,461 6,461 1

RDN11401 Benara Road 75,000 36,864 22,500 59,364 79

RDN11426 Meadow Street 400,000 311,000 1,650 312,650 78

RDN12403 Henley Brook Avenue 791,200 718,566 75,000 793,566 100

RDN13204 Gnangara Road 450,000 80,893 359,570 440,462 98 293,050 1,030,188 352

RDN14201 Ellenbrook Bridge 5,908,800 1,638,140 3,002,082 4,640,223 79

RDN15006 GNH/Bishop Road 13,838 5,992 19,831

RDN16201 Helena River Footbridge 190,000 97,676 97,676 51 120,000

RDN16209 Millhouse Rd/Chateau Place RA 81,470 86,006 4,226 90,232 111

RDN16211 Moore Road 2,409 2,409

RDN16215 Drumpellier Drive 4,288,801 1,380,000 533,333 39

RDN16216 Benara Road, Intersection 970,690 10,408 360,385 370,793 38

RDN16219 Halden Road 74,440 72,073 72,073 97 74,440 576,101 774

RDN16220 Maralla Road 46,520 30,382 30,382 65 46,520 321,545 691

RDN16221 Cunningham Road 65,130 42,536 42,536 65 65,130 442,124 679

RDN17201 Barkers Bridge 965,820 24,687 306,621 331,308 34

RDN17202 West Swan Road Bridge 905,000 2,183 2,183 800,000

RDN17203 Susannah Brook Bridge 223,330 23,520 23,520 11 53,330

RDN17204 Woodbridge Creek Footbridge 25,000 11,718 11,718 47

RDN17205 Myles Road 501,130 131,235 86,931 218,165 44 197,420 78,968 40

RDN17206 Brookmount Drive 400,000 29,657 127,499 157,156 39

RDN17207 Burgess Road 100,000 2,904 2,904 3

RDN17208 Cruse Road 470,000 460,507 1 460,508 98

RDN17209 Dudley Street 90,000 3,660 38,444 42,105 47

RDN17210 Flecker Promenade 415,000 263,032 99,836 362,868 87

RDN17211 Haddrill Road 1,200,000 45,157 25,232 70,389 6 1,197,615

RDN17212 Oxleigh Drive 190,000 10,088 129,823 139,912 74

RDN17214 Reserve Road 89,000 14,701 52,591 67,292 76

RDN17215 Tondoon Bend 170,000 3,167 600 3,767 2

RDN17216 Wilkins Street 100,000 13,261 18,110 31,371 31

RDN17218 Charlton Way/Papago Loop 20,000

RDN17219 The Broadway 125,000 90,459 12,930 103,389 83

RDN17220 Stock West Road 150,000 25,435 25,435 17

RDN17223 Marshall Road 809,300

RDN17224 Brigadoon Tennis Crts Car Par 30,000


6/03/2018 10:50:56 AM


JobNumber

JobName


% ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

RDN17225 Guildford Parking Infrastruct 25,000 3,064 470 3,534 14

RDN17226 Swan Park Leisure Ctr Car Par 330,000

RDN17227 Bennett Springs Oval Car Park 200,000 55,787 62,888 118,675 59

RDN17228 Car Park - Cnr Atley/Beringar 60,000

RDN17229 Narloo Street Car Park 120,000

RDN17230 Rowe Street Car Park 60,000 7,588 81,938 89,526 149

RDN17231 Parking Technology 75,000 1,944 1,944 3

RDN17232 Parklet Malaga 25,000

RDN17233 Infrastructure The Avenue 2,000,000

RDN17234 Truganina Road 50,000 68,223 267 68,490 137

RDN17235 Wilson Road 66,000 3,423 36,455 39,878 60

RDN17236 Chittering Road Bridge 63,180

RDN17237 Fredrick Street Bridge 21,000

RDN Roads 43,455,144 11,629,814 6,988,213 18,618,027 43 7,026,370 5,274,730 75

CAPITAL JOBS TOTAL 86,760,123 25,542,723 12,045,164 37,587,893 43 8,568,570 8,660,832 101

Current Budget

YTD Expense Current Budget

FullYearExpense

Actual Commited Total % ofBudget

FullYearRevenue

YTDRevenue

% ofBudget

1603 Purchase of Assets Land 9,077,750 2,261,950 2,261,950 25

1608 Purchase of Assets Buildings

1609 Purchase of Assets Comm Bus P 944,700 944,771 944,771 100

1613 Purchase of Asset Office F & 570,250 173,791 87,999 261,790 46

1618 Purchase of Assets P & E 6,673,470 1,859,743 2,224,123 4,083,866 61

1623 Purchase of Assets Computer 797,280 224,585 143,441 368,026 46

1628 Purchase of Assets Vehicle 1,965,530 1,279,774 567,861 1,847,635 94

1634 Purchase of Asset Other Rd In 81,362 81,362

1648 Purchase of Assets Other Infr 80,233 80,233

CAPITAL ASSETS TOTAL 20,028,980 6,906,210 3,023,423 9,929,633 50 0 0 0

GRAND TOTAL 106,789,103 32,448,933 15,068,587 47,517,519 44 8,568,570 8,660,832 101


6/03/2018 10:50:56 AM

5.1

4.0 DInvestments

ADI Lending Status Value Invested $Fossil Fuel lending ADI's

Comm Bank of Australia 18,537,342

National Australia Bank 35,400,000

Bank of Queensland 34,300,000

Westpac Group 5,000,000

93,237,342 Non Fossil Fuel lending ADI's

23,100,000

33,500,000

5,400,000

25,600,000

87,600,000

Total Cash and cash equivalents 180,837,342

0

40

80

120

160

200

240


Mill

ions

$

Total Cash and Investment Position showing Prior Year Comparisons

2015 2016 2017 20180

40

80

120

160

200

July Aug Sep Oct Nov Dec Jan Feb Mar April May June

Mill

ions

$

Cash and Investment Mix (by Type)

24 Hour Call Cash Management Floating Rate Term Deposits Cash

5.0 Cash and Investments

13%

19%

10%

18%

20%

3% 14%

3%

Investment Portfolio Exposure

Bendigo and Adelaide Bank - BENBank of Queensland - BoQCommonwealth Bank of Australia - CBA-BWAMembers Equity Bank - MEBNational Australia Bank - NABRural Bank - RURSuncorp Bank - SUNWestpac Group - WBC

(A-2, BBB+) BoQ

(A-2, BBB) MEB

(A-2, BBB+) BEN

(A-1+, AA-) NAB

(A-1, A+) SUN

(A-1+, AA-) CBA-BWA

(A-2, BBB+) RUR

(A-1+, AA-) WBC

0% 10% 20% 30% 40% 50%

Individual Institution Exposures vs. Policy Limits

Limit Funds

0%

20%

40%

60%

80%

100%

0

50

100

150

200

Historical Portfolio Exposure to Non Fossil Fuel Lending ADIs

Sum(Total) Sum(Non Fossil Fuel Lending ADI (%))

Bendigo and Adelaide Bank

Members of Equity Bank

Rural Bank

Suncorp Bank

Mill

ions

$

City of Swan Economic and Investment Portfolio Commentary

February 2018 Global issues: In the US, fears of rising interest rates helped to trigger a sharp sell-off in the share market at the start of

the month sending ripple effects across major markets around the world. Calmer heads prevailed and most share markets, including Australia’s, ended the month with modest gains.

While continued market volatility is widely expected, the underlying concern of rising interest rates stems from the positive news of solid economic data and good corporate earnings which may eventually trigger central bank rate hikes to control inflation.

In Europe, business conditions and consumer confidence data dipped, but their overall trend continues to be positive.

Domestic issues: In Australia, there was a solid gain in wage price growth over the December quarter taking annual wage

growth to +2.1%. While the annual growth rate is modest, and consisting largely of the rise in the minimum wage, it is the first sign in years of a possible turnaround in stagnant wage growth.

The number of Australian companies reporting half yearly profit growth is on track to be the highest since the GFC.

Interest rates The market is now pricing in no change to Australia’s official cash rate until April/May 2019, when the

RBA is expected to hike rates to 1.75%. Term deposit rates ended February largely unchanged from January month end. The best indicative 3 &

6 month TDs from Australian majors closed out February in the 2.45%-2.50% area. Meanwhile, 12 month rates from the four majors ranged between 2.60%-2.65%, inline with the end of January. Some lower rated banks continue to offer 2.60%-2.65% in the 6 - 9 month area, representing good value depending upon cash flow and policy compliance.

Investment Portfolio Commentary The City’s investment portfolio posted a return of 2.42%pa for the month of February versus the bank bill index benchmark return of 1.76%pa. For the financial year to date, the investment portfolio returned 2.41%pa, exceeding the bank bill index benchmark’s 1.73%pa by 0.68%pa. 48% of the portfolio was invested in non-fossil fuel lending ADIs, the same as the month prior. Investments with realised losses include:

Investment Purchase Price Realised value Crystallised Loss Kalgoorlie 500,000 432,373 67,627 Bluegum 500,000 - 500,000 Deutsche Yield Curve 1,000,000 960,000 40,000 Scarborough 1,500,000 - 1,500,000 Parkes2A 500,000 - 500,000 Torquay 500,000 - 500,000 Flinders 250,000 215,000 35,000 Coolangatta 500,000 494,877 5,123 Merimbula 500,000 480,959 19,041 Esperance 500,000 348,658 151,342 Kakadu 550,000 502,708 47,292 Parkes1A 500,000 - 500,000 Oasis 1,000,000 324,670 675,330 Lehman Brothers Global Property Note 300,000 123,508 176,492 Matured CDOs* 3,650,000 3,650,000 - Legal recovery - 3,621,784 - Total Amount 12,250,000 11,154,537 4,717,247 Net Loss 1,095,463 * Beech, Blaxland, Endeavour, Federation, Henley, Lawson and Glenelg

Current AccountsFace Value Current

YieldBorrower Rating Current Value Reference

13,354,687 1.20% Commonwealth Bank of Australia A-1+ 13,354,687 Cash At Bank2,330,526 1.20% Commonwealth Bank of Australia A-1+ 2,330,526 Brabham1,467,902 1.20% Commonwealth Bank of Australia A-1+ 1,467,902 Caversham1,098,256 1.20% Commonwealth Bank of Australia A-1+ 1,098,256 Dayton285,971 1.20% Commonwealth Bank of Australia A-1+ 285,971 West Swan

18,537,342 1.20% 18,537,342Term Deposits

Face Value Purchase Yield

Borrower Rating Maturity Date

Purchase Price

Current Value Accrued Interest

1,700,000.00 2.55% Bank of Queensland A-2 5-Mar-18 1,700,000 1,722,566 22,5661,000,000.00 2.55% Suncorp Bank A-1 8-Mar-18 1,000,000 1,016,278 16,278 Brabham2,000,000.00 2.55% Suncorp Bank A-1 8-Mar-18 2,000,000 2,032,556 32,556 Caversham3,000,000.00 2.55% Suncorp Bank A-1 8-Mar-18 3,000,000 3,048,834 48,834 Dayton5,000,000.00 2.51% National Australia Bank A-1+ 12-Mar-18 5,000,000 5,064,641 64,6411,700,000.00 2.50% National Australia Bank A-1+ 19-Mar-18 1,700,000 1,722,123 22,1235,000,000.00 2.55% ME Bank A-2 26-Mar-18 5,000,000 5,065,671 65,671

900,000.00 2.55% Suncorp Bank A-1 26-Mar-18 900,000 909,746 9,746 West Swan1,700,000.00 2.55% ME Bank A-2 3-Apr-18 1,700,000 1,721,853 21,8535,000,000.00 2.52% Suncorp Bank A-1 9-Apr-18 5,000,000 5,063,518 63,5181,700,000.00 2.55% ME Bank A-2 17-Apr-18 1,700,000 1,721,853 21,8532,000,000.00 2.51% Bendigo and Adelaide Bank A-2 19-Apr-18 2,000,000 2,026,269 26,269 Brabham1,000,000.00 2.51% Bendigo and Adelaide Bank A-2 19-Apr-18 1,000,000 1,013,135 13,135 Caversham2,000,000.00 2.51% Bendigo and Adelaide Bank A-2 19-Apr-18 2,000,000 2,026,269 26,269 Dayton5,000,000.00 2.52% Suncorp Bank A-1 23-Apr-18 5,000,000 5,063,518 63,5181,700,000.00 2.56% Bank of Queensland A-2 1-May-18 1,700,000 1,721,939 21,9395,000,000.00 2.56% Bank of Queensland A-2 7-May-18 5,000,000 5,064,526 64,5262,000,000.00 2.55% National Australia Bank A-1+ 7-May-18 2,000,000 2,019,981 19,981 Brabham3,000,000.00 2.55% National Australia Bank A-1+ 7-May-18 3,000,000 3,029,971 29,971 Dayton1,700,000.00 2.55% Bank of Queensland A-2 15-May-18 1,700,000 1,721,497 21,4973,000,000.00 2.55% National Australia Bank A-1+ 16-May-18 3,000,000 3,037,307 37,307 Brabham2,000,000.00 2.50% Bendigo and Adelaide Bank A-2 16-May-18 2,000,000 2,024,110 24,110 Dayton5,000,000.00 2.55% National Australia Bank A-1+ 21-May-18 5,000,000 5,063,226 63,2261,000,000.00 2.45% Bank of Queensland A-2 22-May-18 1,000,000 1,002,551 2,551 Caversham1,700,000.00 2.60% ME Bank A-2 29-May-18 1,700,000 1,722,282 22,2825,000,000.00 2.56% National Australia Bank A-1+ 4-Jun-18 5,000,000 5,063,474 63,4741,700,000.00 2.60% ME Bank A-2 12-Jun-18 1,700,000 1,722,282 22,2822,000,000.00 2.60% ME Bank A-2 18-Jun-18 2,000,000 2,025,786 25,7863,000,000.00 2.55% Bendigo and Adelaide Bank A-2 18-Jun-18 3,000,000 3,034,373 34,3731,000,000.00 2.60% Bank of Queensland A-2 18-Jun-18 1,000,000 1,005,200 5,200 Dayton1,000,000.00 2.55% Bank of Queensland A-2 21-Jun-18 1,000,000 1,002,655 2,655 Brabham1,000,000.00 2.45% National Australia Bank A-1+ 21-Jun-18 1,000,000 1,000,873 873 Caversham1,000,000.00 2.55% Bank of Queensland A-2 21-Jun-18 1,000,000 1,002,655 2,655 Dayton1,700,000.00 2.56% Bank of Queensland A-2 26-Jun-18 1,700,000 1,721,939 21,9392,000,000.00 2.55% Suncorp Bank A-1 2-Jul-18 2,000,000 2,019,003 19,0031,500,000.00 2.61% ME Bank A-2 2-Jul-18 1,500,000 1,515,982 15,9821,500,000.00 2.60% Bank of Queensland A-2 2-Jul-18 1,500,000 1,515,600 15,6001,000,000.00 2.62% Bank of Queensland A-2 2-Jul-18 1,000,000 1,008,470 8,470 Brabham2,000,000.00 2.62% Bank of Queensland A-2 2-Jul-18 2,000,000 2,016,940 16,940 Dayton1,700,000.00 2.55% Bendigo and Adelaide Bank A-2 9-Jul-18 1,700,000 1,719,478 19,4782,000,000.00 2.60% Bank of Queensland A-2 16-Jul-18 2,000,000 2,019,375 19,3753,000,000.00 2.50% Bendigo and Adelaide Bank A-2 16-Jul-18 3,000,000 3,030,000 30,0001,700,000.00 2.55% Bendigo and Adelaide Bank A-2 23-Jul-18 1,700,000 1,719,478 19,4785,000,000.00 2.55% Bendigo and Adelaide Bank A-2 30-Jul-18 5,000,000 5,055,890 55,8901,700,000.00 2.55% Bendigo and Adelaide Bank A-2 7-Aug-18 1,700,000 1,716,152 16,1525,000,000.00 2.50% Suncorp Bank A-1 10-Aug-18 5,000,000 5,041,096 41,0962,000,000.00 2.62% ME Bank A-2 14-Aug-18 2,000,000 2,016,222 16,222 Brabham2,000,000.00 2.62% ME Bank A-2 14-Aug-18 2,000,000 2,016,222 16,222 Dayton1,700,000.00 2.50% Suncorp Bank A-1 21-Aug-18 1,700,000 1,713,973 13,9733,000,000.00 2.62% ME Bank A-2 24-Aug-18 3,000,000 3,022,396 22,3961,700,000.00 2.61% Rural Bank A-2 4-Sep-18 1,700,000 1,713,736 13,7361,000,000.00 2.61% ME Bank A-2 7-Sep-18 1,000,000 1,007,222 7,2222,000,000.00 2.60% Bank of Queensland A-2 7-Sep-18 2,000,000 2,006,411 6,4112,000,000.00 2.64% ME Bank A-2 10-Sep-18 2,000,000 2,007,522 7,5221,500,000.00 2.63% ME Bank A-2 17-Sep-18 1,500,000 1,504,864 4,8645,000,000.00 2.60% Bank of Queensland A-2 17-Sep-18 5,000,000 5,016,027 16,0271,000,000.00 2.62% Bank of Queensland A-2 18-Sep-18 1,000,000 1,005,240 5,240 Brabham1,000,000.00 2.62% Bank of Queensland A-2 18-Sep-18 1,000,000 1,005,240 5,240 Dayton2,000,000.00 2.64% ME Bank A-2 24-Sep-18 2,000,000 2,005,063 5,0633,000,000.00 2.50% National Australia Bank A-1+ 24-Sep-18 3,000,000 3,007,192 7,1921,000,000.00 2.62% ME Bank A-2 1-Oct-18 1,000,000 1,004,020 4,020 Brabham

Disclaimer: The statements and opinions contained in this report are based on currently prevailing conditions in financial markets and are so contained in good faith and in the belief that such statements and opinion are not false or misleading. In preparing this report, Prudential Investment Services Corp has relied upon information which it believes to be reliable and accurate. Prudential Investment Services Corp believes that this report and the opinions expressed in this report are accurate, but no warranty of accuracy or reliability is given. Prudential Investment Services Corp does not warrant that its investigation has revealed all of the matters which a more extensive examination might disclose. This report may not be reproduced, transmitted, or made available either in part or in whole to any third party without the prior written consent of Prudential Investment Services Corp. AFS Licence No. 468145.

Term Deposits (continued...)Face Value Purchase

YieldBorrower Rating Maturity

DatePurchase

PriceCurrent Value Accrued

Interest1,700,000.00 2.50% National Australia Bank A-1+ 2-Oct-18 1,700,000 1,702,678 2,6785,000,000.00 2.52% Westpac Group A-1+ 8-Oct-18 5,000,000 5,015,534 15,5341,700,000.00 2.60% ME Bank A-2 17-Oct-18 1,700,000 1,701,090 1,0901,000,000.00 2.60% Bank of Queensland A-2 29-Oct-18 1,000,000 1,002,066 2,066 Brabham2,000,000.00 2.60% Bank of Queensland A-2 29-Oct-18 2,000,000 2,004,132 4,132 Dayton5,000,000.00 2.50% National Australia Bank A-1+ 5-Nov-18 5,000,000 5,005,822 5,8221,700,000.00 2.65% Rural Bank A-2 26-Nov-18 1,700,000 1,711,972 11,9721,000,000.00 2.60% ME Bank A-2 26-Nov-18 1,000,000 1,000,926 926 Brabham2,000,000.00 2.65% Rural Bank A-2 26-Nov-18 2,000,000 2,014,085 14,085 Dayton1,000,000.00 2.60% ME Bank A-2 13-Dec-18 1,000,000 1,000,926 926 Dayton162,300,000 2.56% 162,300,000 163,793,500 1,493,500

162,300,000 163,793,50018,537,342 18,537,342

180,837,342 182,330,842Total Face ValueCash Face Value

Investment Face Value Investment Current ValueCash Current ValueTotal Current Value

6.1

5.0 Debtors

i) Rate Debtors ii) Sundry Debtors

i) Rate Debtors

Notes

TABLE 6.1 Rates Debtor Breakdown by Type

Type of DebtorTotal Levied $('000)Current & Arrears

Collected YTD $('000)Outstanding $('000)Current & Arrears

Total Outstanding %

General Rates 128,169 100,546 27,623 22%Sanitation Charges 23,771 21,751 2,020 8%Drainage Charges 2,704 2,576 128 5%Security Charges 1,287 1,176 111 9%Other 236 221 15 6%

156,167$ 126,270$ 29,897$ 19%

GRAPH 6.2 Rates Debtor Position with Prior Year Comparisons

??? Prior year debtors

As at 28 February 2018

Each year Rates are levied in July. When this occurs the City recognises the Rates owed as an asset on the balance sheet. Ratenotices are printed and distributed to the public. As these are paid the Rates Debtor position reduces over the course of the year.Graph 6.2 below shows the progress in collecting these funds over the financial year including a comparison to prior yearcollection.

The City's Debtors can be divided into two types:

0

25

50

75

100

125

150


$ M

illio

ns

2016

2017

2018

A high number of residential rates are paid in August as ratepayers take advantage of the early bird payment prize draw.

Current PositionRate Debtors in Arrears

outstanding $4.2m

Current Debtors outstanding$25.7m

Total Debtors $29.9m

6.0 Debtors

The second, third & fourth rate instalments are due in Oct, Jan &

Mar respectively.

6.2

ii) Sundry Debtors

Notes

Table 6.3 shows a summary of the City's top 10 debtors 90 Days plus by dollar value divided by periods. Table 6.4 shows debt recovery comments for the top 10 debtors over 90 days. Graph 6.5 shows sundry debtors outstanding as a percentage based on payment period.

TABLE 6.3 Total Debtors including Top Ten 90 Days plus as at 28 February 2018

Current 30 Days 60 Days 90 Days plus Total

$ $ $ $ $

1 - - - 127,700 127,700 18.54% 7.80%2 - - - 70,000 70,000 10.16% 4.27%3 - - - 61,282 61,282 8.90% 3.74%4 - - - 35,000 35,000 5.08% 2.14%5 - - - 24,447 24,447 3.55% 1.49%6 - - - 20,000 20,000 2.90% 1.22%7 - 7,648 - 18,045 25,693 2.62% 1.57%8 - - - 16,340 16,340 2.37% 1.00%9 - - - 16,231 16,231 2.36% 0.99%

10 - - - 15,817 15,817 2.30% 0.97%Other Debtors 822,407 54,389 64,492 284,071 1,225,359 41.23% 74.81%

Total 822,407 62,036 64,492 688,933 1,637,868 100.00% 100.00%

TABLE 6.4 Progress on Debt Recovery. Comments for top 10 over 90 days from table above

Top Ten Debtors123456789

10

GRAPH 6.5 Outstanding Debtors as a percentage

Progress for the recovery of Funds Comment

The City has lodged a Caveat on the land title. Monies to be recovered upon sale of property.

Referred to Fines Enforcement Registry for enforcement.

Sundry debtors include all monies owed to the City other than those relating to Rates. This includes but is not limited to invoicesraised for grants, leasing of City's premises, and recovery of costs for services provided to developers. The City issues invoiceswith 7 day payment terms.

Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.

Reminder notice sent to customer.

Referred to Fines Enforcement Registry for enforcement.Referred to Fines Enforcement Registry for enforcement.



As % of 90 Days Plus Debtors

As % of Total DebtorsTop Ten > 90 Day

Debtors


Current 50%

30 Days 4%

60 Days 4%

90 Days plus 42%

7.1

Income from Operating Activities

General Purpose Funding Grants and Other Contributions

21% Unfavourable Variance of $1,707,522

Governance 118% Favourable Variance of $119,704

Health 68% Favourable Variance of $121,520

Education & Welfare 11% Unfavourable Variance of $413,472

Other Property and Services 14% Unfavourable Variance of $288,438

Expenditure from Operating Activities

Governance 20% Favourable Variance of $1,726,907

Commercialisation rental income was below budget by $349k as the rental occupancy rates continue to be less than anticipated. The unfavourable variance was offset by Asset Management subdivision clearance revenue which was above budget by $61k.

In Governance, a receipt from the LGIS relating to claims for damages caused by flooding that occurred in February 2017 has offset expenditure, resulting in a positive variance for Insurance Costs of $711k. Other areas that also reflected significant variances are: Contracts $274k, Project Studies and Surveys $563k and Employee Costs $655k. In contrast, Computing License Fees were over budget by $391k mostly due to timing.

The variance is mostly due to an insurance rebate received from the LGIS based on good performance. The budget will be adjusted as part of the mid-year budget review.

Within Health, the variance is partly a timing difference as a result of Annual Food Safety Fees being due for renewal at the beginning of the financial year and also partly due to revenue exceeding budget expectations.

The Swan Community Care Services HACC Program and Community Aged Care grants were less than anticipated by $251k and $69k. The KidSport grant also came under budget by $125k due to the Department of Local Government, Sport and Cultural industries changing their payment method from a lump some payment to monthly invoicing.

A Local Government is to prepare each month a statement of financial activity as prescribed by Regulation (34) of the Local Government (Financial Management) Regulations 1996. The statement of financial activity must report on the revenue and expenditure, as set out in the annual budget under FM Regulation 22(1)(d), taking into account any expenditure incurred for an additional purpose under section 6.8(1)(b) or (c). It includes original budget estimates to the end of the month to which the statement relates and actual amounts of expenditure and revenue to the end of the month. The statement must include material variances between the comparable amounts in ytd budget and ytd actual and an explanation of each. The net current assets at the end of each month have to be shown within the statement of financial activity.

The report calculates variances based on the Original Budget. The actual figures for the year to date are compared to the year to date original budget to present a monetary variance as well as the variance shown as a percentage of the budget.

The composition of net current assets is also required to be presented as support to the statement and this is presented showing funds at the end of the current month, those at the previous 30 June and also those at the end of the corresponding month in the previous year. A graph is also included that identifies the monthly movement in funds for the current year and the previous two years.

Report on Significant Variances of 10% of Original Budget and greater than $10,000 in value

An advance part payment of $2.7m for the 2017/18 Financial Assistance Grants was received in the prior year, resulting in a reduction in grant payments for the current year. Following the mid-year budget review, the budget will be adjusted to bring it in alignment with actuals.

1.0 Income Statement 7.0 Statement of Financial Activity

7.2

Education & Welfare 15% Favourable Variance of $967,852

Housing 18% Favourable Variance of $13,086

Transport 17% Favourable Variance of $3,879,568

Economic Services 16% Favourable Variance of $659,948

Other Property and Services 33% Unfavourable Variance of $838,531

Non Cash Items

Provisions and Other Accruals 114% Favourable Variance of $1,225,058

Capital Income & Expenditure

Capital Grants, Subsidies & Contributions 19% Favourable Variance of $1,274,342

Developer Contributions Plans: Cash Contribution 13% Unfavourable Variance of $681,906

Purchase of Plant and Equipment 62% Favourable Variance of $19,082,711Building construction works were underspent by $9.7m with the following projects displaying minimal spend compared to original budget: Ethel Warren Bullsbrook Community Centre $959k, Altone Place Office $1.2m, Ballajura Place Office $1.1m and Operations Centre $2.9m. In addition Land Purchases were below budget by $3.6m, Plant & Equipment by $2.9m and Computing Purchases by $2.6m.

This is a timing difference which is expected to reduce as the year progresses.

Capital Grants, Subsidies & Contributions have exceeded original ytd budget by $1.9m. Grants for: Midland Youth Services Hub $1.6m, Ethel Warren Bullsbrook Community Centre $500k, Halden Road $502k, Maralla Road $275k and Cunningham Road $377k were received in the current financial year instead of the prior year where they were budgeted. Additionally, unbudgeted grants were received for Ron Jose Oval $350k and Playspace Replacement Program $255k. Budget adjustments will be processed following the mid-year budget review. The favourable variances were partly offset by the Roads to Recovery Grant which was below budget by $2m due to timing.

$1.3m was collected during February for Developers Contributions. $247k was for Brabham and $1.1m was for Dayton. Due to the unpredictable nature of Developers Contributions, variations between budget and actuals are not unusual.

In Transport, fleet running costs were below budget expectations by $601k. A budget adjustment to reserves is pending. Significant variances were also noted for: Electricity Costs $190k, Employee Costs $197k, Contracts $497k and Depreciation $1m. The budget for Depreciation will be adjusted as part of the mid-year budget review.

Operating projects were underspent by $345k accounting for 52% of the variance within Economic Services. The following projects reflected significant below budget expenditure: Urban Design/Heritage Working Paper $25k, Midland Parking $33k, Midland Implementation Plan 2010-2017 $40k and Transport Strategy $68k. Vacant positions resulted in Employee Costs being under budget by $188k, adding to the variance.

In Other Property and Services, Project Management Costs Recovery, which is correlated to capital works expenditure reflected an unfavourable variance of $2.1m. Conversely, Employee Costs were under budget by $347k, Projects Studies & Surveys by $143k, Depreciation by $427k and Consultants by $129k, offsetting the variance.

Employee Costs were less than budget by $423k as result of vacant position and staff annual leave taken over the Christmas period. Projects Studies and Surveys were also under budget by $377k predominately due to various projects not expending as budgeted. As the year progresses it is expected that the budgeted funds will be utilised.

Consultants and Contracts Costs displayed timing differences of $7k and $6k respectively. It is anticipated that the variances will reduce as the year progresses.

7.3

Purchase or Construction of Infrastructure 48% Favourable Variance of $18,523,307

Other Non Operating Items

Loan Principal Repayments 13% Favourable Variance of $597,198

Transfer To Reserves 11% Favourable Variance of $3,170,538

Other Funding Sources

Transfer from Reserves 48% Unfavourable Variance of $15,071,594

Transfer (to) from Trust Funds 66% Unfavourable Variance of $109,850

Proceeds from Sale of Assets 78% Unfavourable Variance of $7,258,816

Proceeds from New Loans 100% Unfavourable Variance of $8,430,960

Movement in Deferred Rates (Non-Current) 180% Unfavourable Variance of $211,218

Opening Net Current Assets July 1 B/Fwd 120% Favourable Variance of $12,720,803

The unfavourable variance in deferred rates is due to timing and is likely to decrease during the course of the year as payments are received.

The majority of this favourable variance relates to carry forwards for capital works and the advance receipt of a portion of the Financial Assistance Grant for 2017/18. The balance of the variance relates to operating revenue being greater than budget and operating expenditure being lower than budget.

Anticipated year to date asset disposals have not yet occurred, resulting in an unfavourable variance. Proceeds from sale of assets are expected to increase as assets are disposed of through the year, which will result in a decline in the unfavourable variance.

The City has not drawn down on any of its budgeted loans, resulting in an unfavourable variance in Proceeds from New Loans. It is expected that the variance will decrease through the remainder of the financial year as new loans are drawn to fund capital expenditure.

Expenditure incurred on capital projects triggers the draw down of City Loans. The 13% favourable variance is anticipated to reduce as City Loans are drawn down.

Actual amounts transferred to Reserves have been lower than the budgeted amount, contributing to the favourable variance. Transfers are expected to align to budget over the course of the financial year.

Expenditure that is incurred on capital jobs typically increases as the financial year end draws closer. The $15.1m unfavourable variance is reflective of reserve-funded expenditure being less than anticipated in the first half of the financial year and is expected to align with the budget in the second half of the year.

The variance is expected to reduce as financial year end approaches and transfers from Trust are processed. Actioning of Transfers from Trust is triggered by increase in expenditure on Trust funded capital jobs.

Road Construction projects displayed a favourable result of $18.3m, in particular, Lord Street $4.5m, Ellenbrook Bridge $2.3m, Drumpellier Drive $1.4m, Hadrill Road $754k and Barkers Bridge $675k. Expenditure is expected to increase as works for these projects progress, reducing the variance.

7.4

Original Budget 2017/18

Revised Budget 2017/18

YTD ORIGINALBUDGET

@ 28 FEBRUARY 2018


2018

$VARIANCE

VAR NOTE

% VAR /ORIGINAL BUDGET

YTDOPERATING ACTIVITIESIncome

122,963,766 122,963,766 Rates 122,667,966 121,037,599 (1,630,367)10,814,710 10,814,710 Grants and Other Contributions 8,019,862 6,312,340 (1,707,522) U (21%)

133,778,476 133,778,476 Total General Purpose Funding 130,687,828 127,349,939 (3,337,889)159,710 159,710 Governance 101,286 220,990 119,704 F 118%

2,330,330 2,330,330 Law, Order and Public Safety 2,075,469 1,928,315 (147,154)267,000 267,000 Health 178,000 299,520 121,520 F 68%

4,329,660 4,329,660 Education and Welfare 3,649,060 3,235,588 (413,472) U (11%)60,000 60,000 Housing 40,000 41,472 1,472

23,444,130 23,444,130 Community Amenities 22,994,163 23,480,450 486,2867,105,090 7,137,490 Recreation and Culture 4,820,290 4,903,753 83,4631,894,300 1,898,850 Transport 1,436,800 1,364,007 (72,793)1,660,000 1,660,000 Economic Services 1,173,333 1,236,050 62,7172,995,120 2,995,120 Other Property and Services 1,996,747 1,708,309 (288,438) U (14%)

178,023,816 178,060,766 Subtotal Income 169,152,976 165,768,392 (3,384,583)

Expenditure(2,624,696) (2,624,696) General Purpose Funding (1,640,963) (1,566,304) 74,659

(13,535,101) (13,839,511) Governance (8,840,780) (7,113,874) 1,726,907 F (20%)(6,242,648) (6,200,548) Law, Order and Public Safety (4,163,755) (3,959,368) 204,387(1,847,676) (1,848,526) Health (1,231,784) (1,176,150) 55,633(9,761,478) (9,692,618) Education and Welfare (6,554,151) (5,586,299) 967,852 F (15%)

(109,399) (109,399) Housing (72,933) (59,846) 13,086 F (18%)(26,227,492) (26,109,782) Community Amenities (17,447,659) (15,936,042) 1,511,617(55,023,520) (55,359,750) Recreation and Culture (36,681,482) (35,186,983) 1,494,498(34,156,852) (34,135,532) Transport (22,657,142) (18,777,574) 3,879,568 F (17%)

(6,371,920) (6,373,870) Economic Services (4,238,279) (3,578,332) 659,948 F (16%)(3,875,820) (4,083,680) Other Property and Services (2,576,163) (3,414,694) (838,531) U 33%

(159,776,601) (160,377,911) Subtotal Expenditure (106,105,090) (96,355,466) 9,749,625

18,247,215 17,682,855 Net Operating Profit / (Loss) 63,047,885 69,412,926 6,365,041

ADD NON CASH ITEMS34,877,410 34,877,410 Depreciation 23,251,607 22,701,595 (550,012)

1,612,095 1,612,095 Provisions and Other Accruals 1,074,730 2,299,788 1,225,058 F 114%36,489,505 36,489,505 Subtotal Non Cash Items 24,326,337 25,001,383 675,046

54,736,720 54,172,360 Net Operating Surplus / (Deficit) 87,374,222 94,414,310 7,040,087

LESS CAPITAL INCOME & EXPENDITURE8,954,380 9,385,870 Capital Grants, Subsidies & Contributions 6,766,473 8,040,816 1,274,342 F 19%7,689,610 7,689,610 Developers Contributions: Cash contribution 5,126,407 4,444,501 (681,906) U (13%)4,878,730 4,878,730 Developers Contributions: In Kind Contribution - - -

18,250,000 18,250,000 In Kind Developer Contributions: Other - - -(46,433,910) (45,326,119) Purchase of Plant and Equipment (30,955,940) (11,873,229) 19,082,711 F (62%)(21,522,030) (21,522,030) Assets Contributed by Developers - - -(58,131,290) (61,462,984) Purchase or Construction of Infrastructure (38,754,193) (20,230,887) 18,523,307 F (48%)

(1,606,700) (1,606,700) Land Ceded to the Crown - - -(87,921,210) (89,713,623) Subtotal Capital Income and Expenditure (57,817,253) (19,618,799) 38,198,454

LESS OTHER NON OPERATING ITEMS(6,825,173) (6,825,173) Loan Principal Repayments (4,550,115) (3,952,918) 597,198 F (13%)

(44,822,930) (44,822,930) Transfer to Reserves (29,881,953) (26,711,415) 3,170,538 F (11%)(51,648,103) (51,648,103) Subtotal Other Non Operating Items (34,432,069) (30,664,333) 3,767,736

OTHER FUNDING SOURCES47,585,440 52,227,959 Transfer from Reserves 31,723,627 16,652,033 (15,071,594) U (48%)

250,000 400,000 Transfer (to) from Trust Funds 166,667 56,817 (109,850) U (66%)- - Profit on Impairment of Investments - 3,939 3,939

13,891,200 13,891,200 Proceeds from Sale of Assets 9,260,800 2,001,984 (7,258,816) U (78%)82,931 82,931 Self Supporting Loans Repayments 55,287 45,869 (9,418)

12,646,440 12,646,440 Proceeds from New Loans 8,430,960 - (8,430,960) U (100%)(175,714) (175,714) Movement in Deferred Rates (Non current) (117,143) (328,361) (211,218) U 180%

10,638,590 8,202,844 Opening Net Current Assets July 1 B/Fwd 10,638,590 23,359,393 12,720,803 F 120%84,918,887 87,275,660 Subtotal Other Funding Sources 60,158,788 41,791,675 (18,367,113)

86,293 86,293 CLOSING NET CURRENT ASSETS YTD 55,283,687 85,922,855 30,639,168

CITY OF SWAN STATEMENT OF FINANCIAL ACTIVITY


7.5

ACTUAL @FEBRUARY 2018

ACTUAL @JUNE 2017

ACTUAL @FEBRUARY 2017

Current AssetsUnrestricted Cash, Cash Equivalents & Investments 67,399,124 33,952,372 59,443,183 Restricted Cash, Cash Equivalents & Investments 113,438,218 103,311,605 106,576,057 Assets Held For Sale 7,847,019 7,847,019 - Rates Debtors Current 32,211,211 9,334,749 28,543,070 Trade and Other Receivables 3,133,419 2,685,444 2,996,647 Prepayments 354,070 1,361,018 341,544 Inventory 309,070 263,351 337,769 Total Current Assets 224,692,130 158,755,558 198,238,271

Less Current LiabilitiesIncome in Advance (1,775,451) - (1,361,747) Accounts Payable (11,797,515) (19,709,420) (11,948,324) Provisions - Employee Entitlements (13,557,610) (13,504,458) (12,830,985) Loan Repayments (2,354,063) (6,306,981) (2,469,594) Total Current Liabilities (29,484,639) (39,520,859) (28,610,650)

Net Current Assets 195,207,491 119,234,699 169,627,620

Add Back Restricted LiabilitiesLSL Reserve 9,683,602 7,713,071 7,058,504 Loan Repayments 2,354,063 6,306,981 2,469,594 Self Supporting Loan Contributions (37,062) (82,931) (45,286)

Adjusted Net Assets 207,208,094 133,171,820 179,110,432

Less Restricted Cash, Cash Equivalents & InvestmentsReserves: Cash Backed (109,261,051) (99,201,670) (103,498,051) Bond monies (4,177,168) (2,763,739) (3,078,006) Assets held for sale (7,847,019) (7,847,019) -

Closing Funds 85,922,855 23,359,393 72,534,375

* Changed to reflect Local Government of Western Australia Guideline - Number 8 - June 2013.

CITY OF SWANNET CURRENT FUNDING POSITION

AS AT 28 FEBRUARY 2018

10

30

50

70

90

110

130

150

170

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Mill

ion

$

Liquidity Over Three Years

2015/162016/172017/18

8.1

1. STATEMENT OF CASH FLOW

2. RATE SETTING STATEMENT

Cash flow information provides users of financial reports with a basis to assess the ability of an entity to generatecash and cash equivalents and the needs of the entity to utilize those cash flows. The cash flow statement shallreport flows during the period classified by operating, investing and financing activities. The key objective of a cashflow forecast is to predict the period in which cash inflows and outflows will occur.

It is essential that local governments have meaningful and accurate financial information on which to base decisions.The starting point for sound financial management is the preparation of the Rate Setting Statement. This statementis a crucial component of the budget process and shows how much rates are required to pay for the localgovernment's operations. The Rate Setting Statement is a statutory requirement and is unique to local governmentin that it contains values of opening funds and closing funds. Opening funds refer to 'net current assets less restrictedfunds and committed cash and amounts already reflected in the current year budget'. The opening fund forms partof the calculation of the amount of the deficiency to be raised from rates as referred to in s 6.2(2)(C) of the LocalGovernment Act.

8.0 Other Statutory Reports8.0 Other Statutory Reports

8.2

ORIGINALBUDGET2017/18

REVISEDBUDGET2017/18 CASH FLOWS FROM OPERATING ACTIVITIES

YTD ACTUAL@ 28 FEBRUARY 2018

ACTUAL @30 JUNE 2017

Receipts122,694,652 122,694,652 Rates Revenue 102,649,089 116,499,160

1,212,300 1,212,300 Service Charges 1,175,788 1,219,67537,490,460 37,490,460 Fees & Charges 21,971,011 37,092,413

5,364,050 5,364,050 Interest Earnings 3,677,556 5,526,53510,069,900 10,096,400 Operating Grants, Subsidies & Contributions 5,552,750 13,433,603

1,066,043 1,066,043 All other revenue 667,659 2,008,2466,184,086 6,184,086 GST Inflow 3,547,452 4,567,5

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