MAYOR‟S FOREWORD ...... 1 CHIEF EXECUTIVE OFFICER‟S REPORT ...... 4 COUNCILLOR PROFILE ...... 6 REVIEW OF OUTCOMES ...... 10 RUN CLAREMONT ...... 10 RENEW CLAREMONT ...... 26 FUTURE CLAREMONT ...... 31 PARTNERING INITIATIVES ...... 39 DISABILITY ACCESS AND INCLUSION PLAN ...... 41 NATIONAL COMPETITION POLICY ...... 42 STATISTICAL COMPARISONS ...... 43 STATEMENT BY THE CHIEF EXECUTIVE OFFICER ...... 45 INDEPENDENT AUDITOR‟S REPORT ...... 46 ANNUAL FINANCIAL REPORT ...... 48

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MAYOR’S FOREWORD It is a privilege indeed to report to you as mayor of the Town of Claremont. Your council has achieved a great deal over the course of the year. Much has been done and the foundation is set for much more. The „new‟ business centre of Claremont has continued to take shape, with the Multiplex/Hawaiian development stage 1 project and the Clough/Twin Oceans development opened. One does not have to agree with everything in the new developments to acknowledge that they have brought new energy and opportunity to the town centre. The Claremont Quarter will be finished soon; the second stage is planned to open in early 2011, and it will set Claremont apart from other shopping centres. This is a time of change and the council wants to ensure that great opportunities emerge for the businesses which have been at the core of the town‟s commerce. There are plans now for significant investment by the Town in Bay View Terrace and other precincts within the town centre. Discussions are underway with a number of property owners who want to improve their assets in the town centre and businesses are contacting the Town to enquire about opportunities to become involved. The Claremont North East Precinct (NEP) Structure Plan project area covers approximately 9.4 ha on the northern side of the Claremont Train Station. The land is well located for transit orientated development (TOD) as it is within walking distance of the Claremont Town Centre and within very close proximity to the Claremont Train Station. Some 500 new residential dwellings will be provided so that a greater range of people will have the option of living in central Claremont. 2009-2010 was a mixed year for the project. Whilst numerous project milestones and State planning approvals were achieved, progress of the supporting business case for Cabinet approval has been delayed by cross-agency (State level) issues. A Cabinet decision to proceed with the NEP is anticipated in September 2010. Key milestones achieved this financial year include:  Ministerial approval of the Major Metropolitan Region Scheme Amendment;  Ministerial approval of the Local Planning Scheme Amendment;  Western Australian Planning Commission approval of the Structure Plan; and  Urban Planning Reform Category winner in the 2010 National Awards for Local Government. In February 2009 the Minister for Local Government announced wide-ranging strategies for the reform of local government in Western Australia. Council complied with the Minister‟s requirement to prepare and present a submission outlining the Council‟s position about local government reform. Town of Claremont is supporting the move for structural reform subject to the interests of the Town‟s residents not

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Town of Claremont Annual Report 2009 – 2010 being diminished. In March 2010 Council agreed to enter into a Regional Transition Group [RTG] with the Towns of Cottesloe and Mosman Park and Shire of Peppermint Grove. This would allow the members of the group to develop a business plan and have a sound basis upon which to assess if a merger would be a good outcome for the communities. I think it is unfortunate that it has not been possible to form a RTG, with both Mosman Park and Peppermint Grove voting against an RTG and Cottesloe‟s agreement being conditioned in such a manner that Claremont was left without partners to work with. I fear that if we do not find a way to work together then sooner or later the decision will be taken from local hands; so I believe it is important to secure a positive future for our communities by taking a proactive approach to reform. Your council will continue to seek opportunities to work with our neighbours for a united outcome. This was a year of change in the area of regional cooperation and we have been actively evaluating the effectiveness of the current regional structure. In the future the focus may be less on the Western Suburbs Regional Organisation of Councils (WESROC), as the Chief Executive Officers seek further opportunities for cooperation beyond WESROC. Lakeway continues to be a standout subdivision, attracting awards from the Urban Development Institute of Australia (UDIA) and the Institute of Public Works Engineering of Australia (IPWEA). The acknowledgment from the development industry and the sales achieved certainly validates Council decision to proceed with this venture for the ongoing benefit of current and future generations. With the sale of 24 lots grossing $19,786,000 all costs have been covered, the Treasury loan retired and surplus funds invested in capital works or held as reserves in safe investments. There are 15 lots remaining with a gross value in excess of $12 million. Lakeway is poised to move from subdivision to a community with 19 development applications approved for the construction of houses over the course of the year and the first home being completed and occupied. The Claremont Pool is receiving a major upgrade after your Council approved $1.9 million to refurbish the 25 metre and 50 metre pools. After almost 40 years the pools had deteriorated significantly and the drainage systems and other support infrastructure required attention. The major works consist of stainless steel PVC laminated modular systems being inserted within the existing structures. The works required closure of the Claremont Pool from May and it is scheduled to reopen for On a more subdued note I recognise the passing of former long serving councillor and Freeman of the Town, Trevor Nicholas. He served the Claremont community as a councillor from 1956 to 1989, a commitment that would be equalled by few, if any, across local government in WA. Perhaps he should best be remembered for his drive to get the Claremont Pool built, which is recognised in the naming of the main pool in his name. Page 2

I must also recognise the contribution of council members, staff and many volunteers to Claremont. Because 2009 was an election year some council members are no longer on the Council and their service, in particular, should be acknowledged. I am pleased to acknowledge our new Chief Executive Officer. We are indeed fortunate to welcome Stephen Goode, a very experienced and qualified professional who is already making a real contribution to the Town. I thank everybody who has contributed to our community and look forward to the opportunity to work together in the year ahead.

Jock Barker MAYOR

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Town of Claremont Annual Report 2009 – 2010

CHIEF EXECUTIVE OFFICER’S REPORT

During this period the strong commitment to the future direction developed in 2006 and reviewed in 2008 has been maintained. It is a true testament to the Council and officers who set out the direction in the Plan for the Future that it remains our guiding document, our road map to the future, and continues to deliver future focussed projects while ensuring today‟s priorities are properly addressed. The architect of this comprehensive foundation for Claremont‟s future was the Chief Executive Officer, Arthur Kyron, who left the Town after some ten years service.

The Town‟s organisational structure remains focussed on the program areas: Run Claremont, Renew Claremont and Future Claremont. The Plan for the Future is the foundation for everything the Town does and a very effective accountability mechanism is achieved by linking everything back to the Plan: Council‟s budget, business unit plans, officer performance agreements are all aligned. This alignment ensures the Town‟s resources are appropriately directed and properly utilised.

Our emphasis on planning for the future and ensuring that the Claremont Council strongly influences how the town develops has continued. The Strategic Investments Section is managing many present and future development projects in the Town. During the year the flagship development at Lakeway won prestigious awards including the „Best Residential Development under 250 Lots‟ and „Rising Star Award‟ categories of the 2010 Urban Development Institute of Australia [UDIA] Awards for Excellence, together with the Institute of Public Works Engineering of Australia [IPWEA] Awards for Local Government Engineering Excellence. The Lakeway subdivision has returned $19.8 million to the Town from an investment in the development costs of $8 million. The loan raised to finance the development was fully repaid this year and there are 15 lots remaining with an estimated value of $12 million.

Council maintained its commitment to renewal of community assets with $1.2 million of capital works undertaken by Infrastructure Services. One particularly important project approved and commenced is the $1.9 million upgrade of the Claremont Aquatic Centre which will be completed in November 2010. In addition to the capital program the business units of council continued to provide effective and efficient services for the community. The Services Section has the role of providing regulatory, community, corporate and governance services. The community services unit delivers important services such as Claremont‟s library, the museum, aquatic centre and popular community events like the Christmas festival. Infrastructure Services works to improve our roads, parks, paths, traffic management, signage and streetscape. Page 4

There was much activity in addressing the State Government‟s local government reform proposals. Following the results of a broad community consultation process which saw a considerable majority of the Claremont community indicate support for change, the Council has worked to achieve an outcome which will most benefit Claremont. The Minister for Local Government has proposed a process which allows potential partners in a merger to develop a business plan as the basis for assessing if they wish to proceed to an amalgamation. This is to be achieved through forming a Regional Transition Group which is made up from the Councils which agree to participate. There is State funding for the business planning process. At the end of the process each participant can decide whether or not it wishes to proceed to amalgamation based on the outcomes of the planning process. The Claremont Council supported the development of a regional business plan with the Town‟s of Cottesloe and Mosman Park and Shire of Peppermint Grove. Although the proposal to form a Regional Transition Group is yet to gain support from other councils, Claremont is working to increase regional cooperation and resource sharing.

Having joined the Town during this year I have been delighted at the way people work together for the good of Claremont. Our success depends upon the leadership of the Council, the commitment of the dedicated staff, the selfless work of many volunteers and the support of the community. I look forward to building on the achievements of 2009 – 2010 as we continue working together to deliver the Plan for the Future.

Stephen Goode CHIEF EXECUTIVE OFFICER

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Town of Claremont Annual Report 2009 – 2010

COUNCILLOR PROFILE

The Town of Claremont Council is made up of a Mayor and nine Councillors, who are elected by popular vote. Each member is elected for a four-year term and the terms are staggered so that only 50% of the Councillors retire at each biennial election. There are three wards: East, West and South with each ward represented by three Councillors. Up until 2007, elections for all local government authorities have been held biennially on the first Saturday in May. The State Government amended the Local Government Act 1995 to change the election date to the third Saturday in October, placing the 2009 election on the 17 October 2009. Members of the Claremont Town Council for the 2009-10 period were:

His Worship the Mayor Jock Barker Term expires 2013

Cr Paul Kelly Cr Wendy Stephens Cr Jill Goetze Deputy Mayor Cr Karen Wood South Ward South Ward South Ward West Ward Term expires 2011 Term expires 2013 Term expires 2013 Term expires 2013

Cr Anita Lorenz Cr Diana Christian Cr Mary McComish Cr Anne Halsted Cr Bruce Haynes East Ward West Ward West Ward East Ward East Ward Term expires 2011 Term expires 2011 Term expires 2011 Term expires 2011 Term expires 2013

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EXECUTIVE TEAM & FUNCTIONS

Stephen Goode CHIEF EXECUTIVE OFFICER

Saba Robert Kelly Les Crichton Will Pearce Ben Rose Brian Kirupananther Kavanagh EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE PRINCIPAL MANAGER MANAGER MANAGER MANAGER MANAGER URBAN STRATEGIC INFRASTRUCTURE REGULATORY CORPORATE & COMMUNITY PLANNER PROJECTS SERVICES GOVERNANCE SERVICES

Strategic Investment Strategic Investment Services Services Services Services Strategic urban Lakeway - Transport, Traffic Planning Customer Services Claremont Pool planning residential - and Design development Lake Claremont North East - Precinct Town centre - Project management Maintenance of Financial Services Community Events, Building Infrastructure, Youth, Aged Emergency Management Parks and Gardens Local Planning – Strategic asset - Rangers Governance Golf Course and the Lake Strategy investments Renewal Records Museum Local Planning - Heritage Programme Management Scheme Streets and - Contract Environmental Information Library Laneways Management Health Technology Activation Plan Connecting

Claremont Plan

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Town of Claremont Annual Report 2009 – 2010

TOWN OF CLAREMONT ORGANISATIONAL OVERVIEW Town of Claremont ORGANISA TIONAL OVERVIEW

PROGRAMS, SECTIONS & MAYOR & COUNCILLORS APPROVED FTE 73.47 STAFFING Executive & Support 3 1 JULY 2009 Regulatory 15.3 Corporate 13 Community 23.65

Infrastructure 14.52 CHIEF EXECUTIVE Strategic Investments 4 OFFICER

MANAGER EXECUTIVE EXECUTIVE SUPPORT OFFICER

RUN PROGRAM RENEW PROGRAM FUTURE PROGRAM

SECTIONS & REGULATORY CORPORATE & COMMUNITY INFRASTRUCTURE STRATEGIC EXECUTIVE SERVICES GOVERNANCE SERVICES SECTION INVESTMENTS SECTION SECTION SECTION 2FTE SECTION 1FTE 1FTE 1FTE 2FTE

RECORDS STRATEGIC RANGER SERVICES LIBRARY ENGINEERING DESIGN SERVICE UNITS MANAGEMENT PROJECTS 5FTE 3.95FTE 1FTE 3FTE 1FTE

CONTRACTS & HEALTH SERVICES FINANCE MUSEUM PROJECT URBAN PLANNING 3FTE 4FTE 2.8FTE ENGINEERING 1FTE 1FTE

STATUTORY CUSTOMER SERVICES CLAREMONT POOL RENEWAL PLANNING 3FTE 8.9FTE 2FTE 3.5FTE

INFORMATION BUILDING SERVICES GOLF COURSE ASSETS & WORKS TECHNOLOGY 2FTE 5FTE 4.52FTE 1FTE

COMMUNITY HERITAGE GOVERNANCE PARKS & GARDENS SERVICES .08FTE 1FTE 4FTE 2FTE

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MISSION, VISION AND VALUES OF THE TOWN

Our Mission

“To maintain our vibrant and harmonious village. Embracing the future, respecting the past.”

Vision

We are proud of our Town and our achievements and we will continue to work to:  Be a positive example to other communities of integration between built and natural environments.  Develop a beautiful, green environment which presents a clear identity for the Town.  Ensure our Town will be accessible and safe.  Welcome diversity in our community and have a harmonious, enjoyable and active community where our residents will have a strong sense of belonging.  Encourage the business community to be vibrant, successful, and integrated into the life of the Town.  Be an open and accountable government which encourages community involvement and strives to keep its community well informed.  Develop and manage the assets of the Town to the best of our ability and preserve our heritage for the enjoyment of the community.  Be a dynamic, achievement oriented, forward looking and caring organisation that strives for excellence. We are committed to sound financial management.  We will strive to create a community based around a village concept.

Values INTEGRITY - We will be ethical and honest in the way we work. QUALITY COMMUNICATION -We will keep our community involved in, and informed of, Council services and developments that may have an impact on them. CUSTOMER SERVICE - We will deliver services that are valued by our community, whilst building positive relationships. EXCELLENCE - We will strive to achieve excellence in all that we do. SUSTAINABILITY - The services we provide will be economically, socially and environmentally sustainable. ACCOMPLISHMENT - We will finish everything we start, within budget and on time. CONTRIBUTION TO COMMUNITY - We will enhance the sense of belonging within the community.

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Town of Claremont Annual Report 2009 – 2010

REVIEW OF OUTCOMES

Council’s over-arching strategic document, the Plan for the Future, identifies three focus areas in the operations of the Town:  Run an efficient and effective Council business  Renew the Town's infrastructure  Manage the future development of the Town

The outcomes for the 2009-10 year are reported under these three focus areas. RUN CLAREMONT Objectives  Build a proud, positive and safe community by continuing to deliver cost effective statutory and discretionary services and activities.  Appropriately resource the services delivered by the Council‟s business units.  Comply with statutory obligations.  Work in partnership with other western suburbs councils (WESROC †) in addressing regional issues and improving local government services.

We were able to make positive contributions to achieve these outcome objectives through many targeted initiatives.

CORPORATE & GOVERNANCE SERVICES SECTION Council included a number of projects within the 2009–10 budget for the continued improvement in its effectiveness of Corporate & Governance leadership. Policies & Local Laws During the review period, staff reviewed of 98 policies, modified 52, removed 46, and prepared 8 new policies in order to streamline and provide more effective, efficient and current processes to which Council and staff could operate. The programmed review ensures all policies remain relevant in the current environment in context of Councils strategic objectives. Local Law reviews commenced or completed during the financial year included two new local laws (Parking and Parking Facilities 2009, Standing Orders 2009), and one amendment (Health Amendment 2009).

† Note: WESROC is a voluntary regional alliance and is made up of City of Subiaco, City of Nedlands, Towns of Claremont, Cottesloe and Mosmon Park and Shire of Peppermint Gove.

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Finance The market slowdown, attributable to the global financial crisis, experienced in 2008- 09 appeared to reverse in 2009-10 to provide Lakeway sales of 17 lots and gross land sales revenue of $12.763 million. Council was then able to repay the whole loan principal outstanding of $6.455 million and transfer $4.798 million to the Future Fund Reserve.

Council also resumed its Capital Works (Renewal) Program with expenditure of $1.258 million during the year.

Councils Operating Surplus was an improved result in comparison to the previous 3 years of $0.267 million prior to the abnormal profit on sale of land took it to a Surplus of $5.575 million. Council ended the financial year with an overall Surplus Carried Forward of $1.446 million which can be attributed to various areas of genuine savings in expenditure and better than expected performance with some areas of revenue.

Records Management State Records Act 2000 The Town of Claremont Record Keeping Plan (RKP) was reviewed and approved by the State Records Commission on 7 April 2010. The RKP details how Council should create and keep records. The RKP comprises documents which, when assessed as a whole, provide an accurate reflection of Council‟s record keeping program. Documents referenced in the RKP include the Disposal Authority and Record Keeping Policies and Procedures. Principle 6, compliance to the State Records Act 2000, states that the Annual Report should include evidence of the Council‟s work to maintain an efficient and effective record keeping system. Activities in 2009-10 to support this included the following:  Records training included in induction programs for new officers conducted.  Review of Records file plan.  Ongoing archival of inactive files within the file plan. Freedom of Information Statement

The Town of Claremont received 6 applications for information under the Freedom of Information Act during the 2009-2010 financial year.

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Town of Claremont Annual Report 2009 – 2010

COMMUNITY SERVICES SECTION The section ran highly successful programmes in 2009-10 that were able to attract residents and visitors in celebrating the community‟s vibrancy. The majority of programmes and facilities experienced an increase in participant and visitor numbers compared to the previous year‟s figures. Community Services Community Services presented a variety of services and events for all sections of the community including seniors, youth, families and volunteers plus commemorative events such as Anzac and Remembrance Day. The 2009 Christmas Carnival again sustained its reputation as a highly regarded festival on the community calendar. The Claremont Town Centre for one wonderful evening was a focal point in showcasing community talents and skills. The Carnival‟s popularity witnessed larger crowds compared to the previous year. Extended boundaries down to and including Avion Way, a wider range of activities and community stalls and a strengthening of community and local business participation continue to consolidate local ownership of the event. The Council continues its commitment to residents with the provision of various support services for the aged, disabled, youth and families. Services include Home and Community Care (HACC), TAPSS Community Care, youth events and community safety/crime prevention and are provided through regional partnerships with neighbouring local governments, community groups and the State and Federal governments. The Youth Advisory Council (YAC) of Claremont, a youth council for 12 – 25 year olds, was involved in AmpFest, the Claremont Christmas Carnival and the Anzac Day Ceremony, held photography and film workshops (as part of National Youth Week), Movies in the Pool, pool parties, a combined Council movie screening and urban art workshops leading to a painting of a graffiti hot spot location in the town centre to name a few. A series of four walking trails within the Town were developed internally in partnership with the Council‟s Heritage Services and Museum. This project is partly funded by a Local Activity Grant. The trails seek to develop a sense of place through an appreciation of the Town‟s history. Maps for each trail are now available. Directional signage will be erected at the starting point of each trail early in the new financial year.

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Community Services Events in Pictures

Anzac Day 2010 Ceremony Anzac Day 2010 Ceremony

Seniors Week Morning Tea – October 2009 Seniors Week Morning Tea – October 2009 With Claremont Primary School Students With Claremont Primary School Students

Claremont Christmas Carnival 2009 Remembrance Day Ceremony 2009

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Town of Claremont Annual Report 2009 – 2010

Community Services Events in Pictures continued…

Claremont Pool Party 2009 Claremont Christmas Carnival 2009

Carols in the Park 2009 – Claremont Concert Carols in the Park 2009 Band

YAC Movies in the Pool 2009

Painting of Banner‟s in the Terrace Banner 2010

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Claremont Museum Claremont Museum completed new interpretation of the „old school‟ building and site with the assistance of two Lotterywest grants. It was officially launched by outgoing Claremont Mayor Peter Olson during the Museum Open Day held in October 2009. The event attracted nearly 600 visitors who enjoyed a range of entertaining, educational and family orientated activities.

A „significance assessment‟ was prepared by Heritage Today. It identified the history, themes, importance and meaning of the collection and highlighted items of national significance, such as the collection of items relating to Sir Paul Hasluck, as well as the historic Boatshed and the collection associated with it. A „preservation needs assessment‟, conducted by Preservations Australia, identified key conservation issues, such as the need to re-position the Boatshed on concrete flooring, the need for new adequate storage facilities and new exhibition space to enhance the collection‟s usability and greater public access. Funding is sought through the Federal Community Heritage Grants Program to complete the first phase of conservation work on the Boatshed collection. Interpretation of the Boatshed has commenced with new funding received through the Lotterywest Interpretation Grants Program. In stage one, the Museum has developed an interactive multi-media presentation, utilising 3D technology which allows visitors to explore the use of boat building tools.

Claremont Museum hosted the annual Museums Australia WA Christmas Function. More than 80 members of the Museum and Gallery sector attended.

Storage space located at the depot has been upgraded by installing additional shelving and re-organising larger collection items. The butcher‟s cart was relocated from the Education room to the Council depot. This move has created additional space for school activities.

Two UWA Arts Practicum students undertook 100 hours of project related work each between August and October 2009. A French student doing her Masters in Tourism and Cultural Heritage at the University Lumière in Lyon, France, has taken up a five month internship at the Museum. She is gaining skills in collection management and research and is involved in various projects, as well as assisting with the Education Program.

During International Museum Week, the Museum held a French soiree. Guided tours in French of the Museum were followed by tastings of French wine and cheese. This

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Town of Claremont Annual Report 2009 – 2010 event attracted many first time visitors.

Museum staff collaborated with the Council‟s Community and Heritage Services to develop Walking Trails for Claremont. The Trails project was officially launched in February 2010 at the Museum with breakfast and guided walking tours.

Museum staff organised an Oral History seminar at Notre Dame University and presented a talk at the oral history conference in Canberra.

Claremont Library The Claremont Library has once again provided recreational, educational and cultural activities and events throughout the year.

The library programme for adults included a successful guest author session presented by Danica-Lea Larcombe on her book „Pushing the Boundaries: a mission to see the world’. As part of the 2010 Library and Information Week held in May 2010, Claremont Library hosted a writing workshop for adults entitled „Co-creating in an Ego Bucket’.

The commemorative historical ANZAC Day display was again coordinated by the Library and featured photographs and wartime memorabilia provided by local residents and community groups.

A new initiative introduced this year was a programme of special author presentations to commemorate ANZAC Day. Support from local schools was overwhelming with 350 students attending the five sessions.

An excellent range of programmes and events for children of all ages was offered during the year. This included the very popular weekly story time, a special Spooky Stories in the Park, National Simultaneous Storytime, Premier‟s Reading Challenge, October School holidays raffle and a comprehensive programme for Children‟s Book Week. More than 1,000 students and teachers listened to award winning authors, illustrators and storytellers during the week. Baby Rhyme Time continued to be a success with an average fortnightly attendance of 20 babies and their parents. Forums are held with new Mother‟s groups every six weeks to disseminate information on the Better Beginnings family literacy programme, in partnership with the State Library of Western Australia.

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The Library continues to provide outreach services for housebound residents with the assistance and time of the Town‟s enthusiastic, dedicated and very much appreciated volunteers.

Claremont Library was invited by Claremont Quarter to present story time sessions at the shopping centre in August 2009 and May 2010. It was a wonderful opportunity to promote the library and resulted in benefits to both organisations. The community received the sessions well with some 40 children and their parents attending each session.

Lobbying from the Council during the course of the year helped persuade the State Government increase its level of financial support for library materials.

The Claremont Library is one of five libraries that form the Western Suburbs Libraries Group. This regional initiative enables Western Suburbs residents to access a wider selection of library materials by sharing a regional library network and database. An example of this was a consortium to share the costing of Your tutor, which has proved to be a popular addition to the online databases.

Lake Claremont Golf Course Following many reviews and a referendum, the Council decided that the long 9 course would play its last day on 30 June 2009 and that the area be used as a mix of park and bush land. The short course (par 3) was retained and continued to provide a valuable service for those wanting to play this version of the game. Our professional golfer continues to be available for coaching purposes. A significant amount of work went in to upgrading the surfaces around the tees and greens during the financial year with some good results. Claremont Pool

Claremont Pool was built in 1971 as an outdoor facility and operated on a seasonal basis until 2003. It has operated all year round since it was heated in 2003 by a Geothermal Heating System.

The pool received 210,000 visitors in 2008-09 and had 204,239 visitors through the doors from 1 July to 16 May 2010 (due to closure for upgrading of the 25m and 50m pools). The centre offers a range of activities from leisure and lap swimming to tuition, water aerobics, squad and diving training. The pool is also home to the Dolphins Water Polo Club and over thirty school swimming carnivals per year.

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Town of Claremont Annual Report 2009 – 2010

Claremont Pool held several youth and family events during the summer period including two youth pool parties, three family orientated „swim in movie‟ nights, two fitness camps and the annual Australia Day Barbeque.

Due to the age and structural integrity of the pool, on 20 April 2010 the Town of Claremont approved $1.9M to refurbish the 25m and 50m pool structures and renew the grounds and surrounds. The works started on 17 May 2010 and will see the installation of stainless steel PVC laminated modular systems being inserted into each of the pool structures. New paving will be laid, concrete pavements repainted and lawn areas renovated. The centre will re-open for the 2010-11 summer season.

Claremont Pool Refurbishment Works

Pools drained of water Cutting of box gutters Demolition of centre channel

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REGULATORY SERVICES SECTION The Regulatory Services are those that cover the Planning, Heritage, Building, Public Health and Environment, Waste Management and Ranger and Law Enforcement functions of the Town. These core statutory responsibilities are the essential functions that make up the enforcement and compliance area of Council. During the year these service units were able to make positive contributions to achieve the PFF outcome objectives through implementing many targeted initiatives in partnership with other service units. In 2009-10 Regulatory Services successfully managed the processing of planning and building applications and heritage requests and provided ranger, parking, health and waste/ recycling services to a high level of satisfaction to the majority of residents, businesses and developers.

Planning Services Unit The Planning Services Unit managed applications for development in the Town of Claremont by applying the provisions of its Town Planning Scheme (TPS3), Guidelines and policies.

Applications submitted for planning approval were completed within the sixty day statutory period of time in most cases. This achievement has seen an improvement on the previous year‟s assessment time and has been primarily achieved through modifications to the application process involving the following changes:

 Applicants undertaking compliance self-audit and attending pre- lodgement meetings.  Applicants undertaking the advertising of applications.  The strict implementation of the quality assurance system.  Increase of delegation powers.

Overall the Town was successful in achieving its goals with only four Planning Applications being lodged as an Application for Review at the State Administration Tribunal.

Building Services Unit The Building Services team assessed and approved 275 building licences over the 2009-10 year. This has shown a steady increase over the past 2 financial years. The Building Surveyor also approved 21 demolition licences, 14 verge permits and 8 sign licences.

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Town of Claremont Annual Report 2009 – 2010

The value of these building licence application fees total $242,772 for the financial year. Development within the Town Centre is progressing with applications for commercial „fit outs‟ being lodged throughout the year. The Building Services units received 25 fit out applications which were assessed and approved. These applications were for the Claremont Quarter and Clough Development site. Stage Two for Claremont Quarter Development is well underway and progressing ahead of schedule where further fit out application will be lodged. Heritage Unit Community and Cultural Development 2009-10 has been a successful year for heritage promotion with the completion of the development of four heritage walking trails. This was a collaborative project between the Heritage Officer, Museum Manager and Community Services Coordinator. The trails showcase the Town‟s fascinating history and significant heritage assets in a way that is accessible to the whole of the community. The Trails were launched successfully at the Claremont Museum in February with guided tours conducted by the Heritage Officer, Museum Staff and Mary Yates the map illustrator. The Walking Trail Brochures have been a huge success and the Town has received considerable positive feedback from the community.

The next stage in the walking trails project is to have signage installed at the beginning of each trail. The design proposal for the signage has advanced considerably and the signage should be installed in the coming weeks. Design concepts for second and third tier interpretative signage have been developed and the Heritage Officer and Community Services Coordinator have applied for a Lottery West Grant to have interpretative signage installed at significant heritage sites along the Walking Trail routes.

Regular Town Talk articles have kept the community informed of progress and achievements in heritage matters. Among other things the community was informed about the Heritage Loan Subsidy Scheme, the historical significance of the Claremont Train Station precinct and the listing of the avenue of Pine Trees on the Lake Claremont Golf Course.

Customer Service Prompt answers to heritage related questions and the availability of the Heritage Officer to meet with owners concerning proposed developments have continued to result in a high level of customer satisfaction.

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Managing the Built Environment The Heritage Management Plan was adopted by Council in 2005 as a tool to guide heritage management into the future. Much has progressed and further actions will be completed in the coming financial year subject to budget approval. Both the 2000 Heritage Conservation Strategy and the 2002 review of heritage management techniques identified the necessity for change in the heritage provisions in the current Town Planning Scheme. The proposed new Town Planning Scheme will give the Town the possibility to address this need. Heritage Services has been researching and consulting with heritage professionals, other local governments and the Office of Heritage to ensure that heritage provisions in the new local Planning Scheme will reflect best practice in heritage conservation and planning. A review of heritage related policies was conducted this year which resulted in minor amendments to the archival records policy. The Heritage Officer and Senior Planning Officer, along with consultants Chris Antill and Rosemary Rosario have been developing two local planning policies. These policies will ensure that future development and re-development within Claremont will conserve and protect places of cultural heritage significance and the residential character of Claremont. They will also provide clear guidelines to landowners and the community about what is considered appropriate development. The policies have been vigorously tested against Development Applications received by the Town to ensure that any potential problems have been resolved prior to their adoption by Council. Submissions from the community have also been considered and the policies amended accordingly. A workshop with Councillors will occur in July to ensure that Council is familiar with the Policies prior to adoption. This year eight heritage assessments for properties in Agett Road have been updated and a further six are near completion. Agett Road is a significant heritage streetscape and these assessments will be useful to owners when considering making alterations and additions to their heritage properties. This year saw the addition of the Avenue of Pine Trees at the Lake Claremont Golf Course to the Town‟s Heritage lists. One de-listing request was also processed resulting in the removal of a place from the Town‟s Schedule. The place was retained on the Municipal Inventory ensuring that any future development of the place is sympathetic to the heritage significance of the streetscape in Shenton Road. Heritage Services dealt with one referral of a planning application for a front fence to the State Administrative Tribunal. The case was settled through mediation. A Heritage Assessment of the Town Hall is near completion. This assessment will guide Council when making any decisions on the future use of the Hall and any alterations

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Town of Claremont Annual Report 2009 – 2010 and additions that can be made to the building without affecting its heritage significance. This year Heritage Services provided the Planning Department with thirty-one reports on Developing Applications for Heritage Listed places.

Health Services Unit The Health Services Unit aimed to achieve excellent public health standards within the built environment by identification of public health issues and then worked towards a safe and healthy community. The Health Services Unit was able to ensure this by:  Reviewing and amending the Health Local Law  Drafting the new Waste Local Law  Continued inspections of all public pools and spas and analysing 211 water samples to ensure the correct chemical and bacteriological parameters  Conducted regular risk based food premises inspections and 14 foods were analysed for compliance with the Food Standards Code  Public building inspections were conducted, to ensure that existing premises have not changed in use and remain in a safe state for the occupation of the public  There were 38 noise complaints received which was a significant decrease to the previous two years  The Health Unit continues to have a major role in all events such as the Big Day Out, Good Vibrations and the Royal Show where it monitors noise, crowd numbers and food sales, while also ensuring that free drinkable water is available to all patrons

The Town monitored the noise of the major concerts such as the Big Day Out, Good Vibrations and Stereosonic. The Christmas Carnival and along with other events like the Royal Show the Town allocated an Environmental Health Officer to coordinate these events. The Town has commitment to waste reduction and working toward the Federal Government initiative of Zero Waste for the reduction of waste to landfill and is actively encouraging resident to reduce waste by; recycling – the Town offers a second free recycling bin, reusing products and selective purchases. The Town is a participant in the International Council for Local Environmental Initiatives (ICLEI) „Water Campaign‟ and Health Services in conjunction with Infrastructure staff are keen for the Town to gain the status as “Water Wise” council with Department of Water/Water Corporation.

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Ranger/Compliance Services Unit During the 2009-10 year, significant staff changes have occurred in the Rangers Services Unit. A flexible roster has allowed the Unit to cover 6 days of operation over both morning and afternoon shifts. This has resulted in productivity improvement and created flexible work times for staff and allows for increased coverage of the Town. Achievements:  Fines enforcement audit and completed update.  EnforceIt version 5 upgrade of the infringement database system.  Meter-Eye Smart Parking System procurement and installation.  Renewal programme of regulatory signs and line marking throughout the Town.  New taxi and scooter bays have been created in the CBD.  Audit of gazetted car parks and assets contained therein.  Upgrade of pidion parking machines including latest soft ware.  Standardised traffic management models for special events around the Royal Agriculture Society grounds.  Better response times to infringement appeals and resolution of complaints  A review of Local Laws and Policies including the Parking and Parking Facilities Local Laws 2009.  Re negotiation of the Graffiti contract. Trial of a new service provider.  Reduction in impounding of trolleys due to a more efficient trolley collection management by businesses in the Central Business District.  Proactive approach to Parking and Ranger Services including the Ranger Resource sharing cooperation with our G4 neighbours.  Review and audit of the Dog registration and data base The Town remained active in its endeavours to minimise the impact of graffiti by continuing to remove all graffiti on Town and private property as quickly as possible. The Town has been successful in maintaining removal within 48 hours of reporting or within 24 hours where the graffiti is racist or obscene in nature (weather permitting). The Ranger Unit has made improvements in the reporting and collation of incidents of graffiti and the Town‟s contractor provides proactive patrols in some of the more active areas. Meetings with the Police and the exchange of information continue, with Police advising of prosecutions and Council claiming costs against the offenders.

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Town of Claremont Annual Report 2009 – 2010

A coordinated approach to parking has been instigated this year within the CBD, with signage being consistent in both language and compliance to Australian Standards. During 2009-10, we saw the installation of Meter-Eye Smart parking technology in certain streets and car parks within the CBD. This system has been installed by other Councils and has had the effect of turning over vehicle parking bays more frequently to the benefit of the retailers in the area. As a result of community input, Dean, Albert and Saladin streets were changed from unlimited parking to 2 hour parking, with residential parking permits exempted. This resulted in a less congested streets, and has allowed residents the opportunity to utilise the on street parking to their benefit. Bay View Terrace near Victoria Ave has No Parking set down and pick up only added to the section of the carriageway to facilitate and assist the nearby Private School and has proved successful to date. Corry Lynn Road, Brae Road and Cliff Road have been subject to a trial of restrictive signs to alleviate the traffic congestion around school peak periods. St Thomas school has also received the benefit of Council Officers attention in regards to traffic management issues. The Disability Services Act requires the Town to demonstrate how it is meeting the objectives of the act in relation to providing access and opportunities for inclusion to everybody in relation to its facilities, information and consultative mechanisms. The Towns Disability Access and Inclusion Plan sets out our commitment to providing a safe , efficient and welcoming facilities and the Town has been actively committing resources to initiatives that demonstrate this philosophy of universal access. During the year, the Town also reported to the Disability Services Commission on its achievements in relation to universal access. Council approved the installation of bituminised easy access bays in Graylands Road, Claremont for patrons attending special events. This has received applause from both the public and the Disability Serves Commission. Council has also dedicated a car park on Shenton Road, Claremont for the exclusive use of public requiring universal access to parking spaces. This area is closest to Gate 1 of the Royal Agricultural Society grounds and near public transport. Council officers assisted with a Dog Registration initiative with both the Town of Vincent and The City of Nedlands attending both foreshore and park facilities. This initiative was supported by local Vets and welfare organisations. Council Officers conducted the yearly Town wide Bush Fire inspection. Several compliance orders were issued to remove hazards from either vacant blocks or overgrown/ dead debris Page 24

A review of the Parking and Parking Facilities Local Laws was undertaken and a revised law has been implemented.

Line of sight issue Footpath obstruction

Contravening signs Pedestrian Access denied

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Town of Claremont Annual Report 2009 – 2010

RENEW CLAREMONT Objectives  Maximise the contribution to community amenity and to the character of the Town by upgrading our:  Infrastructure and streetscapes  Parks & reserves  Community use buildings  Invest in the appearance of the Town Centre and shopping precincts in Claremont Crescent, Shenton Road, Ashton Avenue, Davies Road and Stirling Highway.  Protect the natural environment. Infrastructure Directorate performs functions in the following areas to achieve the above objectives-  Programmed Infrastructure Maintenance (PIM)  Traffic and transport including TravelSmart  Lake Claremont  Renewal program and capital works  Engineering works (depot) and contract management  Parks, gardens and reserves  Managing external infrastructure works arising from major developments  Representation in the regional technical initiatives A key component of the Plan for the Future is to target funds over the next five years to accelerate the repair, replacement and renewal of the Town‟s ageing infrastructure. Councils across Australia have recognised that for many decades they have neglected the replacement of major assets such as roads, bridges, drainage, paths, irrigation, landscaping and buildings. Few Councils have been able to put money aside to be in a position to do such work, once the asset finally succumbs to continual use. Claremont is no different. Its infrastructure assets are „wearing out‟ after over 100 years of use. To address this situation, the objectives in the plan will be achieved by implementing the following two programmes:  Infrastructure Renewal Programme will implement selected projects that focus on key locations in an integrated way.

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 Programmed Infrastructure Maintenance will target funds towards the regular maintenance of roads, footpaths, buildings, drainage and other infrastructure and the natural environment (Lake Claremont, adjoining bushland and the foreshore) in order to continue to provide a safe, functional and sustainable public environment.

Infrastructure Renewal Programme 2006-2010 The programme recognises that public infrastructure not only has to be safe and functional, but also has a major role in the „look and feel‟ of Claremont and the reinforcement of its distinctive sense of place. The projects will be planned, designed and implemented to integrate all elements in the public domain - roads, drainage, footpaths, parks, street trees and other planting, pedestrian facilities, street furniture, lighting and opportunities for public art. The programme will implement selected infrastructure renewal projects by spending $1m to $2m each year over five years commencing in 2006/07, after which the programme will be reviewed by the Council. The programme is a commitment to the future by the Town which sets out a five years plus plan to progressively implement a range of practical and achievable projects, mainly under the following three categories:  Improved pedestrian links to activity centres and railway stations.  Upgrading of parks & reserves.  Streetscape and road improvements. The important works including renewal programme, capital projects, maintenance, Lake Claremont and bushland works carried out with volunteers and local school students and projects with developer contribution are listed below. The funding for these projects were allocated from Council budget process, state and federal sources and developer contributions: 1. Claremont Pool Terrace upgrade. This is to terrace the steep grass embankment to improve safety and some seating for spectators at pool events. 2. Mrs Herberts Play Equipment replacement. Replaced the rusted out playground equipment at this location and installed a new maritime theme play equipment in keeping with its riverside location 3. Barnfield Road storm water drainage upgrade and rain garden. Drainage flooding mitigation in Barnfield Road between Albert Street and Grange Street. The works included installation of stormwater pits, modification

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Town of Claremont Annual Report 2009 – 2010

of crossover, footpath and kerb on the south side and drainage swale and a rain garden on the north side. 4. Graylands Road ACROD parking. 5. Foreshore works between Alex Prior Park and Jetty Road. 6. Queenslea Drive resurfacing. 7. Lake Claremont Park stage 1 works. 8. Crack Sealing of various roads. Using the condition assessment report and inspection, an interim crack seal programme has been completed. The crack seal works will delay the deterioration of the road pavement by sealing the cracks from rain water entering the base and sub base course of the road pavement. 9. Ashton Avenue/ Judge Avenue intersection modifications to improve safety. 10. Bay Road Stage 2 Streetscape Renewal Works between Victoria Avenue and Melvista Avenue. 11. Victoria Avenue stage 1 Streetscape Renewal Works between Goldsmith Road and Bay Road. 12. Ashton Avenue Streetscape works stage 2. 13. Lake Claremont Park development of draft concept plan. 14. Street tree planting in 2009 During 2009 winter, 380 new trees have been planted and 20 trees were removed across the Town. 15. Lakeway Bushland and Lake Claremont Park The following works have been done in the Lakeway bushland and Lake Claremont Park as part of the regeneration, preservation and retention of bush.

Council Works  Continued from weed control in 2008 to 2009 prior to seed formation stage.  Dead wooding, remedial pruning and removal of dead trees throughout site. Retained some dead trees for bird habitat.  2,000 m3 of mulch spread throughout the site  14,000 plants were planted within the bushland from July to August 09.  2,000 tree guards were installed.

16. Works in Lake Claremont area The following works have been done in the Lake area. Page 28

 Weed Control during lake dry out  Wetland planting to the north (Golf Course) – approximately 4000 (Reeds and Rushes)  Dry land Plantings – Scotch college students planted 500 seed grown plants along Lake Bank and 200 Paper Bark cuttings grown and planted  Dead tree removal – approximately 2 dead blue gums and 2 Agonis (Peppermint) were removed from lake edge (logs retained for Fauna habitat and trunk left for roosting)  The contractor worked with Scotch College students to design bee free bat boxes and installed 18 boxes across the site. 17. Playground Equipment Inspections The playground equipment inspection has now been formalised. Earlier there was an informal programme with internal staff checking the equipment. A formal programme is in place. The recommendations are assessed and follow up actions are taken. 18. Footpath inspection programme This programme has been continuing for some time now but it has been reviewed again to identify any trip hazards and attend to them as soon as possible. In the 2009-2010 financial year the entire Town was inspected twice and serious trip hazards have been repaired. Other items are prioritised and programmed depending on the availability of budget. Paved paths in the Town Centre, Swanbourne and Ashton Avenue shopping precincts are being pressure cleaned 3 times year.

19. Improvement to storm water drainage system. Soak pits, bubble up pits and swales have been installed to capture the storm water and reduce flooding in to the properties in the following streets. Second Avenue, Judge Avenue, Richardson Avenue and Strickland Street

20. Sustainability: Working towards achieving ICLEI Milestone 4 which is the water campaign. Also partaking in the waterwise campaign (initiative of the Water Corporation). 21. Blackspot funding approval State black spot funding approval was given to two projects  Stirling Road/ Gugeri Street modification of traffic lights to improve safety.  Stirling Road new underpass for pedestrians and cyclists to improve safety. 22. Asset Management System A review of the Infrastructure Asset Management plan which was initially developed in 2004 and Programmed Infrastructure Maintenance (PIM) is

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Town of Claremont Annual Report 2009 – 2010

continuing. The condition of all the roads has been assessed and some works are being carried out including crack sealing with Council budget and external funding. The Town is using NAMS.PLUS Infrastructure Asset Management system to revise the plan in a format that will satisfy the future legislative requirement. 23. Upgrading of park furniture Old park benches are being gradually being replaced with a new, low maintenance style. Matching bin enclosures with attractive, cylindrical dog bag dispensers are also being installed as funds allow. 24. Sifting sand in play equipment areas in parks The Town sift the sand in playground pits four times a year. It involves using a machine modified to sift the playground sand to remove leaves, sticks and other nasties such as broken glass or dog waste. Once completed a report on litter collected from the sand is sent to the Town of Claremont. Each playground is generally finished in a few hours and requires no water use to clean the sand. This improves the appearance of the playground immensely. 25. Footpath Vegetation Clearance The Town appreciates the good work of many residents who regularly clear overhanging vegetation as part of their garden maintenance routine. Private gardens add to the pleasant environment in our streets. However, they can be a concern to pedestrians when they encroach through or over the fence line and obstruct clear access along a footpath. Potential hazards include falling limbs, branches at eye level and pedestrians tripping over path edges whilst trying to avoid overgrown vegetation.

Footpath vegetation clearance Path edge to edge 2.4m upwards

Maintenance of vegetation is the responsibility of private property owners (excluding street trees). Council encourage you to prune any foliage overhanging the footpath. Where private owners do not maintain overhanging vegetation the Town may issue orders under the Local Government Act 1999 requiring the property owners to remove vegetation.

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FUTURE CLAREMONT Objectives  Current and anticipated demographic changes and development activity in the Town is guided by modern, clear statutory instruments, resulting in positive development outcomes;  Encourage appropriate economic development;  Commit to regional cooperation;  Prepare and implement a comprehensive and integrated Traffic Management Plan for the entire Town that protects the lifestyle of residents; and.  Encourage sustainable practices and development.

The Strategic Investment Section (SIS) is charged with the coordination of strategic planning and investment projects within the Town, covering a mix of urban planning, physical and people-related projects. Strategic tasks under management during 2009-10 included:  The construction of the Lakeway 39 lot residential sub-division at Narla Road, Swanbourne.  Coordination of Council‟s regulatory approvals process and relationship management with the developers of the two major shopping/residential/commercial construction projects in the Town Centre.  Acting as the lead agency for the North East Precinct urban renewal project, which includes the Claremont Football Club buildings and oval, the Council depot, the Public Transport Authority (railway) land between the railway line and Shenton Road, and the Police and Community Youth Centre.  Preparation of a Local Planning Strategy (as a precursor to the formal Local Planning Scheme Review).  Preparation of Local Planning Scheme No. 4.  Preparation of a Town Centre Streets and Laneways Activation Plan.  Initiation and planning for the Town Centre Upgrade (reinvesting in the Town Centre to complement the expansive private redevelopment projects).  A strategic review of Council‟s land and building assets, focusing on „rationalisation‟ of under-utilised assets.  Implementation of sub projects within Connecting Claremont (the Town‟s traffic and transport management strategy).

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Town of Claremont Annual Report 2009 – 2010

 Professional consultancy outsourcing to other local governments (delivering a profit to Council). The Strategic Investment Section has carriage of other ancillary projects in accordance with the Plan for the Future, including:  Participation in the Department of Planning „Stirling Highway Activity Corridor Study‟.  Proposed 37 dwelling Transit Oriented Development project at the intersection of Loch Street and Gugeri Street (adjacent to Loch Street train station), including proposed Local Planning Scheme Amendment.  Section Business Planning.  Coordination of public workshops (e.g. PlaceMaking workshop, which returned a profit to Council).  Numerous „advocacy‟ projects, including: o Public submissions on State planning policies and guidelines o Presentation at the International Cities and Town Centres Society Conference Lakeway Residential Development The milestones achieved during the year for the Lakeway Residential Subdivision, located at the old Lakeway drive-in theatre site, on Narla Road Swanbourne include:  Sale of an additional 12 lots in the year bring the total of lots sold and settled to 24, yielding a gross of $21.236 million  Retirement of the loan from Treasury for the development.  Completion of interpretation signage installed within the remnant bushland and Lake Claremont precinct surrounding the development site.  Successful in the Urban Development Institute of Australia [UDIA] Awards for Excellence in two categories; o „Best Residential Development under 250 Lots‟ o „Rising Star Award‟ for a new outstanding entrant in the Land development market.  Successful in the Institute of Public Works Engineering of Australia [IPWEA] Awards for Local Government Engineering Excellence.  19 Development Applications have been approved and 7 houses are under construction or completed.

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„Lakeway‟ continued to attract attention from potential buyers and is acknowledged as a first class development that provides enormous lifestyle benefits and is strategically located close to sporting and recreational amenities. The Town has acknowledged the indigenous heritage of the site by the installing interpretative signage throughout the estate. Another feature and acknowledgement is naming the remnant bush surrounding the site „Ballarruk Bushland‟. Ballarruk is the Bodney family skin group who lived in camps at several locations around Lake Claremont.

Town Centre Developments

The milestones achieved for the Town Centre revitalisation for the year include:  Stage 2 of the Claremont Quarter development commenced during the first week of April 2009 and has a projected date of February 2011for the opening of the retail component.  Stage 2 residential units are due for completion in June 2011  One way traffic flow was introduced in Bay View Terrace for vehicles travelling north to south from Gugeri Street to St Quentin Avenue (and retaining the current two lane vehicle movements from St Quentin Avenue to Stirling Highway) while Stage 2 of the Claremont Quarter is still under construction  The Twin Ocean („Saint Quentin‟) development on the corner of Stirling Road and Stirling Highway was completed.

Claremont Quarter stage 2 has progressed rapidly and is on schedule for the retail tenancies to open in February 2011. There are 73 retail tenancies and 29 residential apartments in Stage 2 of Claremont Quarter.

The One way modification to Bay View Terrace continues to work well and the traffic now flows with ease, whilst still maintaining Bay View Terrace as a pedestrian

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Town of Claremont Annual Report 2009 – 2010 friendly precinct. The Town has commenced developing concepts plans for the upgrade of the town centre to complement the developments of „Claremont Quarter‟ and „St Quentin‟. The key objectives and elements of the upgrade of the town centre are; o Improve the appearance of the town centre o Improve the function of the town centre o Plan the medium-long term land uses for the town centre o Improve the attractiveness of the town centre for visitors and residents

This will be an exciting project that will transform the heart of Claremont into a very vibrant and pedestrian friendly precinct, where the focus is on the total experience for visitors and residents.

The Town of Claremont continued coordinating the „Captain Claremont on Patrol‟ promotion. Captain Claremont commenced duties on the streets and within the „jungle‟ of the Town Centre during November 2008 and continued to patrol the streets at various times during the years until April 2010. This program has been very successful and has been well received by visitors and retail owners.

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CLAREMONT QUARTER-STAGE 2

ST QUENTIN’S

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Town of Claremont Annual Report 2009 – 2010

North East Precinct

The planned redevelopment of Claremont‟s North East Precinct is a wonderful example of how a collaborative approach, together with careful and strategic planning, will turn a tired and under-utilised area into an attractive, thriving and highly desirable community hub.

With its wide range of services and amenities, convenient access to modern and efficient public transport, a network of walkways and cycle paths, and diversity of building design in keeping with the character and qualities of Claremont, the development will offer new standards in lifestyle choices.

Project milestones achieved during the year include: Structure Plan Following Council‟s endorsement of the Structure Plan in December 2008, the Western Australian Planning Commission provided final approval on 15 June 2010. This planning approval marks a major milestone for the project, with certainty to development outcomes and progress of the project now guaranteed.

2010 National Awards for Excellence (Urban Planning Reforms Category) The locally led urban regeneration project was awarded the 2010 National Award for Local Government (Urban Planning Reform Category) at the Australian Council of Local Government Conference in Canberra in June. The National Awards for Local Government recognise, reward and promote the innovative work of local governments across Australia. The National Awards are an important component of the Government's new partnership with local government - showcasing unique local solutions to common problems.

This Award recognises innovative projects that support a coordinated approach to land-use planning; urban design and development assessment. Winning projects evidenced a balance of social, economic and environmental values and contribution to well designed, safe, healthy, and environmentally responsive built environments. LandCorp Detailed Business Plan and Cabinet Submission With the majority of urban planning procedures now completed, or nearing completion, LandCorp escalated their attention to project feasibility and business planning in early-mid 2010. As the State‟s principal land development agency, LandCorp‟s interest in the project is driven by the State Government; the principal

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landowner in the project area. Presently, LandCorp‟s business development team (along with numerous professional consultant groups) are finalising a Detailed Business Case. This Detailed Business Case will supplement a Cabinet Submission later in 2010, seeking State funding for LandCorp to deliver the development.

Local Planning Strategy The Local Planning Strategy is for the community – it will guide developers, local businesses and residents in planning and development matters over the next 10-15 years. Residents will be able to understand the way the Town will be likely to develop. Developers and business owners will gain confidence in going forward, so that investment can be attracted to the Town. The Department of Planning will be able to use the Local Planning Strategy to assess the upcoming Local Planning Scheme, as well as any future amendments. In December 2009, Council endorsed the draft Local Planning Strategy for advertising. Prior to advertising being undertaken by the Town, however, the Western Australian Planning Commission must also review and approve the draft for advertising also. The Western Australian Planning Commission is scheduled to consider the draft Local Planning Strategy on 13 July 2010. Preliminary advice from Department of Planning officers indicates that minimal changes to the draft will be requested – reflecting the collaborative approach adopted by the Town on the project. Streets & Laneways Activation Plan (SLAP) The Streets and Laneway Activation Plan (SLAP) was adopted by Council in March 2010. Through this plan, the Town wants to improve the town centre by providing more places for all types of people to linger in, enjoy and keep returning to, so that that owners and traders can prosper by having the chance to maximise the profitability of their spaces. The Strategic Investment Section has liaised with key land owners and traders in the town centre so as to understand opportunities and constraints in activating laneways and to agree on a set of principles that will guide the development of the plan. The SLAP program identifies a variety of „small win‟ projects for completion on a staged basis, commencing in mid-late 2010. Strategic Asset Review Following the extensive identification, research and evaluation of Council‟s land and building assets in 2008-2009, the SIS team (in collaboration with other sections of Administration) has identified a small number of land and building assets for rationalisation. These assets are surplus to requirements for Council and „realising‟

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Town of Claremont Annual Report 2009 – 2010 the assets will enable investment in other more appropriate community facilities and services.

Connecting Claremont: Implementation Connecting Claremont (the Town‟s traffic and transport management strategy) was adopted by Council in June 2009, following an extensive review and feedback process. From late 2009 – early 2010 an Implementation program was developed, focussing in key sub-projects identified in the strategy. During mid 2010, Administration has focussed on the town-wide Bike Plan and School Travel Plans (working with St Thomas‟ primary school in the first instance).

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PARTNERING INITIATIVES The Town continues to benefit from partnering arrangements with several key agencies and people in Australia mainly Western Australia and acknowledges the high value of such joint arrangements. The voluntary partnership between the Western Suburbs Regional Organisation of Councils (WESROC), comprising the Towns of Claremont, Cottesloe, and Mosman Park, the Cities of Nedlands and Subiaco, and the Shire of Peppermint Grove, has enabled the more efficient use of resources, improved planning and service delivery across a number of areas, such as:  WESROC Regional Environmental Improvement Action Plan including Total Water Cycle Management and Greening Strategy Management;  Climate adaptation and ICLEI milestones;  Youth Needs;  Recreation Services;  Cultural Events Co-ordination;  Stirling Highway Access Corridor Study (SHACS) and Revitalisation Plan;  The road upgrade programme, which has been significantly assisted by funding from Main Roads WA and Roads to Recovery grants;  Black Spot Traffic Management Program assisted by Federal and State funding;  Regional and Local Community Infrastructure Program assisted by Federal funding;  Aged persons support through partnerships with the Councils of Cottesloe, Mosman Park and Peppermint Grove and State and Federal Government HACC funding;  The Councils of Claremont, Cottesloe, Mosman Park and Peppermint Grove support the continuing operation of the Curtin Aged Persons Homes and The Aged Persons Support Service (TAPSS);  Wider access to library stock is one example of the many benefits of on-line access to the Claremont, Cottesloe/Mosman Park/Peppermint Grove, Nedlands and Subiaco libraries‟ catalogues;  The cooperative arrangement with the Western Suburbs regional library network provides residents with enhanced services and broader access to library resources. Following from the review of the regional network that was finalised last year, key recommendations have been implemented and the libraries have

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Town of Claremont Annual Report 2009 – 2010

collaborated on drafting a new service level agreement to cover the next contract period;  The Councils of Cambridge, Claremont, Cottesloe, Mosman Park, Nedlands, Peppermint Grove, Subiaco and Vincent are members of the Western Central Local Emergency Management Committee. The committee‟s core purpose is to develop composite recovery plans, incorporating local arrangements to reflect the characteristics of each community, that aim to restore as quickly as possible the quality of life following an emergency. Additional benefits include the sharing of resources and expertise across the Councils should the scale of the emergency so demand;  The Councils of Claremont, Cottesloe, Mosman Park, Peppermint Grove and Subiaco are members of the Western Metropolitan Regional Council, whose core purpose is the efficient and effective collection and disposal of household waste;  WESROC regional tenders for road asphalt works;  Swan River Trust;  Volunteers for the Lake Claremont.

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DISABILITY ACCESS AND INCLUSION PLAN

We are committed to the Run Claremont objective of building a proud, positive and safe community that respects and provides for the access and inclusion needs of all of its residents through the implementation of the Council‟s Disability Access and Inclusion Plan. Council approved the revised Disability Services Plan in August 2008. Part of the revision process was to evolve it into the newly adopted universal Disability Access and Inclusion Plan (DAIP) as required by the Disability Services Commission. There are now six Outcomes that will be required in the DAIP to help people with disabilities have the same access as the rest of the community within their Local Government Area: Outcome 1: Services and Events Outcome 2: Buildings and other facilities Outcome 3: Information Outcome 4: Quality of service from appropriate knowledgeable staff Outcome 5: Complaints process Outcome 6: Consultations

Outcomes Achieved in 2009-2010  Universal access facilities (eg: pram ramps, concrete footpath) were included as part of all capital and renewal streetscape works in Queenslea Drive, Victoria Avenue (stage 1) between Goldsmith Road and Bay Road, Bay Road (stage 2) between Melvista Avenue and Victoria Avenue and Ashton Avenue (stage 2).  New ACROD bays were constructed in Graylands Road (west side) between Shenton Road and Lapsley Road. This is mainly to assist people with disabilities attending the Royal Show.  Upgrade of footpaths and pram ramps throughout the Town to universal access standards as part of the programmed infrastructure maintenance work.

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Town of Claremont Annual Report 2009 – 2010

NATIONAL COMPETITION POLICY

Local laws are the subject of an ongoing reviews programme, to ensure compliance with National Competition Policy and with the review required pursuant to 5.3.16 of the Local Government Act 1995.

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STATISTICAL COMPARISONS

This table compares the level of activity within various business units over the last three years, by reference to various measures. Some statistics are not available for prior years. BUSINESS UNIT 2006-07 2007-08 2008-09 2009-10 Claremont Pool Number of patrons 202,915 193,752 205,764 204,239 Claremont Museum Visitors 2,807 2,130 3,106 4,035 Number of students 2,141 1,622 2,258 2,396 Lake Claremont Golf Course Number of patrons 25,603 20,195 21,662 10,804 Library Loans 138,360 124,424 109,125 104,046 Returns 117,150 107,983 96,521 95,803 Average loans per hour 66.1 59.22 54.56 50.68 Reservations 17,390 14,792 16,219 12,933 Interlibrary loans sent 2,699 2,448 3,361 5,172 Interlibrary loans requested 3,058 2,463 3,414 6,696 Reference enquiries 22,095 47,014 29,515 23,407 Visitors to the library 76,782 72,690 67,367 64,263 Health Total Building plan and Planning/Health Approval 236 202 234 172 Issued Demolition licence approvals 35 48 23 30 Public/semi public s/pool samples 167 108 139 217 Food premises inspections(*) 88 123 147 147 Food products sampled 1 12 13 7 Public buildings inspections 28 56 26 53 General complaints resolved 82 14 81 91 Noise complaints resolved 10 11 46 62 Royal show food outlet inspections(*) 98 99 62 111 RAS concert events 6 6 5 4 Waste tonnes to landfill 2115 2166 2179 2224 Verge collection waste tonnes to landfill 267 289 261 269 Recycling tonnes 1344 1487 1208 1256 Verge collection greenwaste tonnes recycled 721 802 489 532 81 127 91 88 General waste tip passes (24 tonnes) (37 tonnes) (27 tonnes) (24 tonnes) 77 83 47 77 Greenwaste tip passes (26 Tonnes) (25 tonnes) (14 tonnes) (20 tonnes) (*) Risk management of high risk food premise

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Town of Claremont Annual Report 2009 – 2010

BUSINESS UNIT 2006-07 2007-08 2008-09 2009-10

Planning & Building Total Planning approvals issued 235 199 191 185 Planning approvals issued under delegated 69 51 56 83 authority Town planning scheme amendments 1 6 3 2 Building licences 206 202 224 275 Demolition licences 35 48 23 21 Verge permits 27 14 12 14 Sign licences 28 5 14 8 Section 401 Notices NIL NIL NIL NIL SAT attendances 4 14 7 4 Certificate of classification 7 2 NIL Compliance Inspection (New) 76 51 55 19 Heritage Heritage assessments 22 41 21 31 Requests for removal from heritage lists 1 7 4 1 Ranger Services Removal notices placed on abandoned vehicles 40 150 43 56 Vehicles impounded 55 12 5 14 Notifications to retailers for shopping trolleys 51 71 150 69 Shopping trolleys impounded (majority impounded from Town Centre - no notification given) 250 81 51 18 Notice to comply issued on building sites 136 27 NIL NIL Infringement notices issued on building sites 15 NIL NIL NIL Licence for Trading in Public Places 4 NIL NIL NIL Signs impounded 24 14 NIL 34 Notices issued for illegal signs 43 14 NIL 47 Reports of graffiti to commercial properties 373 841 667 548 Reports of graffiti to residential properties 84 120 94 63 Animal control issues 153 249 300 287 Parking infringements issued 7212 11136 7239 6998 Residential parking permits 115 184 200 325

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STATEMENT BY THE CHIEF EXECUTIVE OFFICER

The Financial Statements of the Town of Claremont, being the annual financial report, supporting notes and other information for the financial year ended 30 June 2010, are, in my opinion, properly drawn up to present fairly the financial position of the Town of Claremont at 30 June 2010 and the results of the operations for the financial year then ended, in accordance with the Australian Accounting Standards (except to the extent that these have been varied in the Statement of Accounting Policies required by Australian Accounting Standard AAS6 “Accounting Policies” and the accompanying notes to the Annual Financial Report) and comply with the provisions of the Local Government Act 1995 and the regulations under that Act.

Signed on 23 December 2010

Stephen Goode CHIEF EXECUTIVE OFFICER

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Town of Claremont Annual Report 2009 – 2010

INDEPENDENT AUDITOR’S REPORT

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Town of Claremont Annual Report 2009 – 2010

ANNUAL FINANCIAL REPORT STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE FOR THE YEAR ENDED 30 JUNE 2010 2010 NOTE 2010 Revised 2009 $ Budget $ $ REVENUE Rates 23 8,446,303 8,421,550 7,410,269 Operating Grants, Subsidies & Contributions 29 530,103 352,400 487,861 Reimbursements 256,658 56,100 217,647 Fees, Charges & Penalties 28 2,421,656 2,406,600 2,408,310 Interest Earnings 2(a) 641,722 296,100 331,739 Other Revenue 43,858 25,600 22,755 12,340,300 11,558,350 10,878,581 EXPENSES Employee Costs (5,026,387) (5,343,722) (5,385,166) Materials & Contracts (3,803,356) (3,822,652) (3,828,545) Office Expenses (676,312) (715,787) (603,953) Consultancy (330,644) (418,562) (313,846) Council Buildings & Facilities (254,353) (259,980) (262,940) Utilities (364,534) (380,275) (344,294) Depreciation 2(a) (836,555) (803,630) (932,574) Interest Expense 2(a) (197,346) (150,000) (332,429) Insurance (139,903) (145,231) (134,993) Other Expenses (754,397) (738,385) (1,749,044) Elected Members Costs 30 (96,482) (93,250) (91,807) (12,480,269) (12,871,474) (13,979,591) (139,969) (1,313,124) (3,101,010)

Non -Operating Grants, Subsidies & Contributions 29 325,079 629,713 232,215 Share of Profit from Joint Venture 4 109,602 - 94,052 Profit on Disposal 21 5,307,916 5,305,736 3,942,755 Loss on Disposal 21 (27,824) (88,308) (20,602) NE T RESULT 5,574,804 4,534,017 1,147,410

OTHER COMPREHENSIVE INCOME Comprehensive Income - - -

TOTAL OTHER COMPREHENSIVE INCOME - - -

TOTAL COMPREHENSIVE INCOME 5,574,804 4,534,017 1,147,410

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

Page 48

STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM FOR THE YEAR ENDED 30 JUNE 2010 2010 NOTE 2010 Revised 2009 $ Budget $ $ REVENUE Corporate Governance 44,256 23,200 45,103 General Purpose Funding 9,451,276 8,936,550 8,118,419 Law, Order & Public Safety 6,486 10,500 22,799 Health 95,164 66,700 68,232 Welfare 12,793 17,100 - Community Amenities 537,153 329,900 390,609 Recreation & Culture 1,025,461 1,104,017 1,224,868 Transport 1,121,442 1,331,133 882,983 Economic Services 5,743,788 5,637,977 4,368,541 Other Property & Services 45,078 36,722 26,049 2(a) 18,082,897 17,493,799 15,147,603 EXPENSES EXCLUDING FINANCE COSTS Corporate Governance (1,162,594) (1,294,092) (926,186) General Purpose Funding (231,532) (248,373) (195,908) Law, Order & Public Safety (109,539) (177,607) (195,206) Health (358,958) (396,267) (397,874) Welfare (144,610) (172,026) (117,267) Community Amenities (1,767,587) (1,709,593) (1,683,331) Recreation & Culture (3,882,439) (4,252,255) (3,834,704) Transport (3,408,280) (3,124,623) (4,463,531) Economic Services (1,245,208) (1,434,946) (1,596,558) Other Property & Services - - (257,199) 2(a) (12,310,747) (12,809,782) (13,667,764) FINANCE COSTS General Purpose Funding (197,346) (150,000) (332,429) 2(a) (197,346) (150,000) (332,429)

NET RESULT 5,574,804 4,534,017 1,147,410

OTHER COMPREHENSIVE INCOME Comprehensive Income - - -

TOTAL OTHER COMPREHENSIVE INCOME - - -

TOTAL COMPREHENSIVE INCOME 5,574,804 4,534,017 1,147,410

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

Page 49

Town of Claremont Annual Report 2009 – 2010

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2010

NOTE 2010 2009 $ $

CURRENT ASSETS Cash and Cash Equivalents 3 10,910,874 4,464,633 Trade and Other Receivables 5 274,530 299,779 Inventories 6 6,248,458 4,188,800 TOTAL CURRENT ASSETS 17,433,862 8,953,212

NON -CURRENT ASSETS Investment Accounted for using the Equity Method 4 1,418,180 1,308,578 Other Receivables 5 132,844 138,232 Inventories 6 - 9,215,359 Property, Plant and Equipment 7 8,436,162 7,866,860 Infrastructure 8 11,555,240 10,739,124 TOTAL NON-CURRENT ASSETS 21,542,426 29,268,153

TOTAL ASSETS 38,976,288 38,221,365

CURRENT LIABILITIES Trade and Other Payables 9 3,216,970 1,685,015 Loans 10 - 6,455,000 Provisions 11 716,328 613,650 TOTAL CURRENT LIABILITIES 3,933,298 8,753,665

NON -CURRENT LIABILITIES Provisions 11 48,942 48,456 TOTAL NON-CURRENT LIABILITIES 48,942 48,456

TOTAL LIABILITIES 3,982,240 8,802,121

NET ASSETS 34,994,048 29,419,244

EQUITY Retained Surplus 26,216,641 21,164,135 Reserves - Cash Backed 12 5,277,400 788,441 Reserves - Asset Revaluation 13 3,500,007 7,466,668 TOTAL EQUITY 34,994,048 29,419,244

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

Page 50

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2010

RESERVES CASH/ ASSET RETAINED INVESTMENT REVALUATION TOTAL NOTE SURPLUS BACKED RESERVE EQUITY $ $ $ $

Balance as at 1 July 2008 17,221,678 1,950,156 9,100,000 28,271,834

Net Result 1,147,410 - - 1,147,410

Total Other Comprehensive Income - - - -

Reserve Transfers 2,795,047 (1,161,715) (1,633,332) -

Balance as at 30 June 2009 21,164,135 788,441 7,466,668 29,419,244

Net Result 5,574,804 - - 5,574,804

Total Other Comprehensive Income - - - -

Reserve Transfers (522,298) 4,488,959 (3,966,661) -

Balance as at 30 June 2010 26,216,641 5,277,400 3,500,007 34,994,048

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

Page 51

Town of Claremont Annual Report 2009 – 2010

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010 2010 NOTE 2010 Revised 2009 $ Budget $ $ Cash Flows from Operating Activities Receipts Rates 8,465,164 8,421,550 7,557,530 Operating Grants, Subsidies & Contributions 530,103 352,400 487,861 Reimbursements 205,708 56,100 217,647 Fees, Charges & Penalties 2,487,681 2,559,350 2,391,363 Interest Earnings 641,722 296,100 344,131 Goods & Services Tax 2,094,394 1,500,000 1,434,501 Other Income 43,858 25,600 22,751 14,468,630 13,211,100 12,455,784 Paymen ts Employee Costs (4,920,423) (5,303,722) (5,359,938) Materials & Contracts (3,521,604) (4,322,652) (4,100,546) Office Expenses (676,312) (715,787) (603,953) Consultancy (330,645) (418,562) (313,846) Council Buildings & Facilities (254,353) (259,980) (262,940) Utilities (364,534) (380,275) (344,294) Insurance (139,903) (145,232) (134,993) Interest Expense (197,346) (150,000) (332,429) Elected Members Costs (96,482) (93,250) (88,618) Goods & Services Tax (850,289) (1,500,000) (1,392,660) Other Costs (754,397) (738,385) (1,742,024) (12,106,288) (14,027,845) (14,676,241) Net Cash Provided By (Used In) Operating Activities 14(b) 2,362,342 (816,745) (2,220,457) Cash Flows from Investing Activities Payments for Development of Land Held For Resale (324,894) (411,620) (2,193,482) Payments for Property, Plant & Equipment (1,177,914) (744,238) (43,825) Payments for Infrastructure (1,258,142) (2,193,539) (370,084) Grants/Contributions for the Development of Assets 325,079 629,713 232,215 Proceeds from Sale of Assets 12,974,770 12,961,336 7,081,618 Net Cash Provided By (Used In) Investing Activities 10,538,899 10,241,652 4,706,442 Cash Flows from Financing Activities Repayment of Loan Principal (6,455,000) (6,455,000) (3,545,000) Net Cash Provided By (Used In) Financing Activities (6,455,000) (6,455,000) (3,545,000) Net Increase (Decrease) In Cash Held 6,446,241 2,969,907 (1,059,015) Cash At Beginning of Year 4,464,633 4,465,922 5,523,648 Cash and Cash Equivalents at End of the Year 14(a) 10,910,874 7,435,829 4,464,633

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

Page 52

RATE SETTING STATEMENT FOR THE YEAR ENDED 30 JUNE 2010 2010 NOTE 2010 Revised 2009 $ Budget $ $ REVENUE Corporate Governance 44,256 23,200 45,103 General Purpose Funding 1,004,973 515,000 708,150 Law, Order & Public Safety 6,486 10,500 22,799 Health 95,164 66,700 68,232 Welfare 12,793 17,100 - Community Amenities 537,153 329,900 390,609 Recreation & Culture 1,025,461 1,104,017 1,224,868 Transport 1,121,442 1,331,133 882,983 Economic Services 5,743,788 5,637,977 4,368,541 Other Property & Services 45,078 36,722 26,049 9,636,594 9,072,249 7,737,334 EXPENSES Corporate Governance (1,162,594) (1,294,092) (926,186) General Purpose Funding (428,878) (398,373) (528,337) Law, Order & Public Safety (109,539) (177,607) (195,206) Health (358,958) (396,267) (397,874) Welfare (144,610) (172,026) (117,267) Community Amenities (1,767,587) (1,709,593) (1,683,331) Recreation & Culture (3,882,439) (4,252,255) (3,834,704) Transport (3,408,280) (3,124,623) (4,463,531) Economic Services (1,245,208) (1,434,946) (1,596,558) Other Property & Services - - (257,199) (12,508,093) (12,959,782) (14,000,193) Adjustments for Cash Budget Requirements: Non Cash Expenditure & Revenue (Profit)Loss on Assets Disposal 21 (5,280,092) (5,217,428) (3,922,153) Share of Profit from Joint Venture 4 (109,602) - (94,052) Movement in Deferred Pensioner Rates 5,388 - 11,570 Movement in Employee Benefit Provisions 486 - 23,205 Depreciation & Amortisation on Assets 2(a) 836,555 803,630 932,574 Capital Expenditure & Revenue Purchase Land Held for Resale (324,894) (411,620) (2,193,482) Purchase Buildings & Improvements (474,758) (15,000) - Purchase Furniture & Equipment (51,197) (45,000) (1,813) Purchase Plant & Equipment (444,863) (504,238) (42,012) Purchase Electronic Equipment (207,096) (180,000) - Purchase Infrastructure Assets (1,258,142) (2,193,539) (370,084) Proceeds from Assets Disposal 21 12,974,770 12,961,336 7,081,618 Repayment of Loan Principal 22(a) (6,455,000) (6,455,000) (3,545,000)

Page 53

Town of Claremont Annual Report 2009 – 2010

RATE SETTING STATEMENT (Cont’d) FOR THE YEAR ENDED 30 JUNE 2010 2010 NOTE 2010 Revised 2009 $ Budget $ $ Transfers to Restricted Assets - Unspent Grants (27,392) 211,860 (210,569) Transfers from/(to) Loan Fund 158,792 245,519 2,472,448 Transfers to Reserves 12 (5,225,789) (4,875,854) (105,244) Transfers from Reserves 12 736,830 265,000 1,266,959

Add Surplus/(Deficit) B/Fwd 1 July 1,017,242 1,017,245 (1,434,130) Less (Surplus)/Deficit C/Fwd 30 June (1,446,041) (140,928) (1,017,242)

Amount Required to Be Raised from Rates 23 (8,446,303) (8,421,550) (7,410,267)

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

Page 54

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES

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

(a) Basis of Preparation The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), other mandatory professional reporting requirements and the Local Government Act 1995 (as amended) and accompanying regulations (as amended).

The report has also been prepared on the accrual basis under the convention of historical cost accounting as modified by the accounting treatment relating to the revaluation of financial assets and liabilities at fair value through profit and loss and certain classes of non-current assets.

Critical Accounting Estimates

The preparation of a financial report in conformity with Australian Accounting Standards requires

management to make judgments, 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 this experience and other

factors combine to form the basis of making judgments about carrying values of assets and liabilities not

readily apparent from other sources. Actual results may differ from these estimates.

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

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

(c) Goods and Services Tax In accordance with recommended practice, revenues, expenses and assets capitalised are stated net of any GST recoverable. Receivables and payables in the Balance Sheet are stated inclusive of applicable GST.

Page 55

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(d) Cash and Cash Equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity 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.

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

(e) Trade and Other Receivables

Trade receivables, which generally have 30 - 90 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less any allowance for uncollectible amounts.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts that are known to be

uncollectible are written off when identified. An allowance for doubtful debts is raised when there is

objective evidence that they will not be collectible.

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

Inventories held from trading are classified as current even if not expected to be realised in the next 12 months.

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

Revenue arising from the sale of property is recognised in the Income Statement as at the time of signing a binding contract of sale.

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

Page 56

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SI GNIFICANT ACCOUNTING POLICIES (Continued)

(g) Fixed Assets

Initial Recognition 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 includes the cost of all materials, direct labour and variable and fixed overheads.

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

Those assets carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and accumulated impairment losses, are to be revalued with sufficient regularity to ensure the carrying amount does not differ significantly from that determined using fair value at reporting date.

Land under Roads

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

the local government. Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. This accords with the treatment available in Australian Accounting Standard 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. 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.

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

Council.

Page 57

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(h) Depreciation of Non-Current Assets All non-current assets having a limited useful life are separately and systematically depreciated over their useful lives in a manner which reflects the consumption of the future economic benefits embodied in those assets.

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

Plant and Major Equipment 3 -5 Years Powered Equipment 3-5 Years Electrical Equipment 10 Years Park Equipment and Furniture 10 Years Attachable Non-Licensed Plant 10 Years Playground Equipment 3-7 Years Mobile Plant 3-5 Years Electrical and Internal Equipment 10 Years Furniture and Equipment 5 Years Tools 50 Years Buildings 50 Years Infrastructure Assets 50 years

Page 58

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(i) Investments and Other Financial Assets

Classification

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

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

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is

classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are

classified as held for trading unless they are designated as hedges. Assets in this category are classified as

current assets.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not

quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non -current assets. Loans and receivables are included in trade and other receivables in the balance sheet. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council‟s management has the positive intention and ability to hold to maturity. If Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. Held -to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets. (iv) Available-for-sale financial assets Available-for-sale financial assets, comprising principally marketable equity securities, are non -derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

Recognition and Derecognition Regular purchases and sales of financial assets are recognised on trade-date – the date on which Council

commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs

for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value

through profit or loss are initially recognised at fair value and transaction costs are expensed in the income

statement. Financial assets are derecognised when the rights to receive cash flows from the financial assets

have expired or have been transferred and Council has transferred substantially all the risks and rewards of

ownership.

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

Page 59

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(i) Investments and Other Financial Assets (Continued)

Subsequent measurement

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

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

carried at fair value. Gains or losses arising from changes in the fair value of the financial assets at fair value

through profit or loss category are presented in the income statement within other income or other

expenses in the period in which they arise. Dividend income from financial assets at fair value through profit

and loss is recognised in the income statement as part of revenue from continuing operations when

Council‟s right to receive payments is established. Changes in the fair value of other monetary and non-

monetary securities classified as available-for-sale are recognised in equity.

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

(j) Estimation of Fair Value

The fair value of financial assets and financial liabilities must be estimated for recognition and

measurement or for disclosure purposes. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on

market conditions existing at each balance date. These include the use of recent arm‟s length

transactions, reference to other instruments that are substantially the same, discounted cash flow analysis,

and option pricing models making maximum use of market inputs and relying as little as possible on entity-

specific inputs.

Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held.

Other techniques, such as estimated discounted cash flows, are used to determine fair value for the

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

Page 60

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

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

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the Income Statement.

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

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

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

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

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

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

Page 61

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(n) Interest -bearing Loans and Borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Borrowing Costs

Borrowing costs are recognised as an expense when incurred except where they are directly

attributable to the acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset.

(o) Provisions

Provisions are recognised when: The council has a present legal or constructive obligation as a result

of past events; it is more likely than not that an outflow of resources will be required to settle the

obligation; and the amount has been reliably estimated. Provisions are not recognised for future

operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in

settlement is determined by considering the class of obligations as a whole. A provision is recognised

even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

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

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

(q) Joint Venture The municipality‟s interest in a joint venture has been recognised in the financial statements by including its share of any assets, liabilities, revenues and expenses of the joint venture within the relevant items reported in the Balance Sheet and Income Statement. Information about the joint venture is set out in Note 17.

Page 62

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

(s) Superannuation The Town of Claremont contributes to the Local Government Superannuation Scheme and the Occupational Superannuation Fund. Both funds are defined contribution schemes.

Contributions to defined contribution plans are recognised as an expense as they become

payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a

reduction in the future payments is available.

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

(u) Comparative Figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(v) Current and Non-Current Classification

In the determination of whether an asset or liability is current or non-current, consideration is given to

the time when each asset or liability is expected to be settled. The asset or liability is classified as

current if it is expected to be settled within the next 12 months, being the Council‟s operational

cycle. In the case of liabilities where Council does not have the unconditional right to defer

settlement beyond 12 months, such as vested long service leave, the liability is classified as current

even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for resale where it is held as non-current based on Council‟s intentions to release for sale.

(w) Budget Comparative Figures

Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the revised budget estimate for the relevant item of disclosure.

Page 63

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted

by the Council for the annual reporting period ending 30 June 2010.

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

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 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 124– Related Party Disclosures December 2009 01 January 2011 Nil – It is not anticipated the Council will have any related parties as defined by the Standard.

(iii) May 2009 01 January 2010 AASB 2009-5 - Further Amendments to Nil – The revisions are part of the AASB‟s annual Australian Accounting Standards arising improvement project to help ensure consistency from the Annual Improvements Project with presentation, recognition and measurement [AASB 5, 8, 101, 107, 117, 118, 136 & 139]. criteria of IFRSs. It is not anticipated these will have any effect on the Council.

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010 1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

Title and Topic Issued Applicable (*) Impact

(iv) AASB 2009-8 - Amendments to July 2009 01 January 2010 Nil - The Council will not have applicable

Australian Accounting Standards – Transactions. Group Cash – Settled Share-based Payment Transactions [AASB 2]

(v) AASB 2009-12 Amendments to December 2009 01 January 2011 Nil – The revisions embodied in this standard Australian Accounting Standards relate to standards which do not apply to local [AASB 5, 8, 108, 110, 112, 119, 133, 137, government (ie AASB8) or are largely editorial

139, 1023 & 1031 and Interpretations 2, in nature and will have minimal effect (if any) 4, 16, 1039 & 1052] on the accounting practices of the Council.

(vi) AASB 2009– 11 Amendments to December 2009 01 January 2013 Nil – The revisions embodied in this standard give

Australian Accounting Standards arising effect to the consequential changes arising from from AASB 9 the issuance of AASB 9 which is not anticipated [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, to have any material effect on the Council (refer 121, 127, 128, 131, 132, 136, 139, 1023 & (ii) above). 1038 and Interpretations 10 & 12)

(vii) AASB 2009-13 Amendments to Australian December 2009 01 July 2010 Nil – None of these amendments will have any Accoun ting Standards arising from effect on the financial report as none of the topics Interpretation 19 [AASB 1] are relevant to the operations of the Council.

AASB 2010- 1 Amendment to Australian February 2010 01 July 2010 Nil – None of these amendments will have any effect Accounting Standards – Limited on the financial report as none of the topics are Exemption from Comparative AASB 7 relevant to the operations of the Council. Disclosure for First-time Adopters [AASB 1 & AASB 7]

Page 65

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

Title and Topic Issued Applicable (*) Impact

(viii) AASB 2009- 10 Amendments to October 2009 01 February 2010

Australian Accounting Standards – Nil – None of these amendments will have any Classification of Rights Issues effect on the financial report as none of the topics [AASB132] are relevant to the operations of the Council.

Interpretation 19– Extinguishing December 2009 01 July 2010 Financial Liabilities with Equity Instruments

AASB 2009– 14 Amendments to December 2009 01 January 2011 Australian Interpretations – Prepayments of a minimum Funding Requirement [AASB Interpretation 14]

Notes: (*) Applicable to reporting periods commencing on or after the given date.

Page 66

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(y) Adoption of New and Revised Accounting Standards

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. The following is an explanation of the impact the adoption of these standards and interpretations has had on the financial statements of the Council.

AASB 101: Presentation of Financial Statements In September 2007, the Australian Accounting Standards Board revised AASB 101 and as a result, there have been changes to the presentation and disclosure of certain information within the financial statements. Below is an overview of the key changes and the impact on the Council‟s financial statements.

Disclosure Impact

Terminology changes – The revised version of AASB 101 contains a number of terminology changes, including the amendment of the names of the primary financial statements. Reporting changes in equity – The revised AASB 101 requires all changes in equity arising from transactions with owners, in their capacity as owners, to be presented separately from non-owner changes in equity. Owner changes in equity are to be presented in the statement of changes in equity, with non-owner changes in equity presented in the statement of comprehensive income. The previous version of AASB 101 required owner changes in equity and other comprehensive income to be presented in the statement of changes in equity.

Statement of comprehensive income – The revised AASB 101 requires all income and expenses to be presented in either a single statement, the statement of comprehensive income, or two statements, a separate income statement and a statement of comprehensive income. The previous version of AASB 101 required only the presentation of a single income statement. The Council has adopted the single statement approach and the financi al statements now contain a statement of comprehensive income. Other Comprehensive Income – The revised version of AASB 101 introduces the concept of „other comprehensive income‟ which comprises income and expenses not recognised in profit or loss as requi red by other Australian Accounting Standards. Items of other comprehensive income are to be disclosed in the statement of comprehensive income. The previous version of AASB 101 did not contain an equivalent concept.

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2. REVENUES AND EXPENSES 2010 2009 $ $

(a) Result from Ordinary Activities

The Result from Ordinary Activities includes:

(i) Charging as an Expense:

Auditors Remuneration - Audit Services 19,100 35,050 - Other Services - 5,000 - Total 19,100 40,050

Depreciation Buildings 155,952 156,564 Furniture and Equipment 13,310 32,471 Electronic Equipment 16,837 40,874 Plant and Equipment 208,430 266,464 Public Art Collection 3,171 1,102 Roads 328,969 326,697 Footpaths 80,280 80,274 Drainage 708 1,001 Carpark 819 696 Parks and Reserves 27,419 26,431 835,895 932,574

Interest Expenses - Loans/Overdraft (Refer Note 22(a)) 197,346 332,429

Rental Charges - Operating Leases 40,833 87,983

(ii) Crediting as Revenue: 2010 2010 2009 $ Revised $ Budget Interest Earnings $ Investments - Reserve Funds 39,208 40,000 105,244 - Other Funds 557,924 220,000 176,282 Other Interest Revenue (ref note 27) 48,302 54,800 50,213 645,434 314,800 331,739

Page 68

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2. REVENUES AND EXPENSES (Continued)

(b) Statement of Objective

The Town of Claremont is dedicated to providing high quality services to the community through the various service orientated programs which it has established.

GOVERNANCE Members of council, civic receptions and functions, public relations, administration and finance.

GENERAL PURPOSE FUNDING General rate revenue and costs relating to levying of rates, general purpose grant revenue and interest on investments.

LAW, ORDER & PUBLIC SAFETY Animal control, dog pound operations, local law control and state emergency services (SES).

HEALTH Public places health and safety, food safety and health compliance.

EDUCATION AND WELFARE Pre-schools, aged and disabled, senior citizens, welfare administration, donations to welfare organisations.

COMMUNITY AMENITIES Rubbish collections, recycling, litter control, public litter bins, town planning control/studies.

RECREATION AND CULTURE Public halls, civic centres, swimming pool, golf course, parks, sports grounds, sports groups, community recreation programs, library, community arts program, youth activities, heritage and museum.

TRANSPORT Roads, footpaths, cycleways, rights of way, drainage, road verges, median strips, street lighting, street cleaning, street trees, traffic surveys, parking services, traffic management and underground power.

ECONOMIC SERVICES Building Services, Strategic Planning and activities involving the Royal Agricultural Society and Anzac Cottage.

OTHER PROPERTY & SERVICES Public works overheads, plant/vehicle operations, private works and other property.

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010 2. REVENUE AND EXPENSES (Continued)

(c) Conditions Over Grants/Contributions Opening Closing Closing Balance Received Expended Balance Received Expended (*) (+) (#) (*) (+) (#) Balance Function/ 1-Jul-08 2008-09 2008-09 30-Jun-09 2009-10 2009-10 30-Jun-10 Grant/Contribution Activity $ $ $ $ $ $ $

Heritage Trails Community Services 20,000 20,000 (20,000) - Community Heritage Claremont Museum 8,000 8,000 (8,000) - Urban Art Project Youth Services 20,000 20,000 (14,504) 5,496 Riverbank Remedial Parks & Reserves 27,000 27,000 (27,000) - Mrs Herberts Park Playground Parks & Reserves 45,000 45,000 (45,000) - Barnfield Road Drainage Infrastructure 40,000 (1,951) 38,049 (38,049) - Swimming Pool Embankment Claremont Pool 40,520 40,520 (40,520) - Law, Order & Public CCTV Town Centre Safety 12,000 12,000 (12,000) - Rowe Park Refurbishment Parks & Reserves - 41,000 41,000 Claremont Crescent Blackspot Infrastructure - 8,000 8,000 Stirling Road Pedestrian Underpass Infrastructure - 170,667 170,667 Stirling/Gugeri Traffic Signals Infrastructure - 25,760 (24,544) 1,216 Secure Taxi Rank Community Services - 11,582 11,582 Total - 212,520 (1,951) 210,569 257,009 (229,617) 237,961

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

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 $ $ 3. CASH AND CASH EQUIVALENTS Unrestricted 5,104,811 3,016,129 Restricted 5,806,063 1,448,504 10,910,874 4,464,633 The following restrictions have been imposed by regulations or other externally imposed requirements: Reserves Pool Upgrade 228,682 - Infrastructure Development & Maintenance - - Office Automation - - Underground Power - - Plant Replacement 62,000 - Bore Replacement - - Public Art - - Parking 617,542 788,441 Aged Transport Subsidy 9,440 - Golf Course Land 30,931 - Future Fund 4,328,805 - Other Unspent Loan Funds 290,702 449,494 Unspent Grants 237,961 210,569 5,806,063 1,448,504

4. INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD

Non -Current Investment in Joint Venture - Western Metropolitan Regional Council (WMRC) The Town together with the Town of Cottesloe, the Town of Mosman Park, the Shire of Peppermint Grove and the City of Subiaco have an interest in the WMRC waste transfer station. The Council was formed to provide for the efficient treatment and/or disposal of waste. A waste transfer station was constructed from funds provided from constituent Councils. The voting power held by the Town is 20%. The Town's 21.34% share of the net assets are included as follows:

(a) Retained Surplus attributable to interest in 2010 2009 joint venture: $ $

Balance at the beginning of the financial year 561,679 467,627 Share of joint venture's profit from ordinary activities after tax 109,602 94,052 Balance at the end of the financial year: 671,281 561,679

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 $ $

(b) Carrying amount of investment in joint venture:

Balance at the beginning of the financial year 1,308,578 1,214,526 Share of profit from ordinary activities 109,602 94,052 Balance at the end of the financial year: 1,418,180 1,308,578

5. TRADE AND OTHER RECEIVABLES

Current Rates Outstanding 46,737 60,209 Sundry Debtors 156,330 222,356 GST Receivable - 2,209 Accrued Income 65,955 15,005 Prepayments 5,508 - 274,530 299,779

Non -Current Rates Outstanding - Pensioners 132,844 138,232 132,844 138,232

6. INVENTORIES

Current Land Held for Resale - Cost Cost of Acquisition 3,525,991 2,341,450 Development Costs 2,722,467 1,847,350 6,248,458 4,188,800

Non -Current Land Held for Resale - Cost Cost of Acquisition - 5,151,202 Development Costs - 4,064,157 - 9,215,359

Page 72

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 $ $

7. PROPERTY, PLANT AND EQUIPMENT

Land and Buildings - Cost 8,927,526 8,452,768 Less Accumulated Depreciation (1,631,016) (1,475,064) 7,296,510 6,977,704

Furniture and Equipment - Cost 276,324 225,127 Less Accumulated Depreciation (191,671) (178,361) 84,653 46,766

Electronic Equipment - Cost 620,980 413,884 Less Accumulated Depreciation (414,146) (397,309) 206,834 16,575

Plant and Equipment - Cost 2,367,925 2,425,138 Less Accumulated Depreciation (1,519,760) (1,599,323) 848,165 825,815

8,436,162 7,866,860

Page 73

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

7. PROPERTY, PLANT AND EQUIPMENT (Continued)

Movements in Carrying Amounts

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

Land Furniture Plant & & Electronic & Buildings Equipment Equipment Equipment Total $ $ $ $ $

Balance as at 1 July 2009 6,977,704 46,766 16,575 825,815 7,866,860

Additions 474,758 51,197 207,096 444,863 1,177,914

(Disposals) - - - (214,083) (214,083)

Impairment - (losses) ------reversals - - - - -

Depreciation (Expense) (155,952) (13,310) (16,837) (208,430) (394,529)

Balance as at 30 June 2010 7,296,510 84,653 206,834 848,165 8,436,162

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 $ $ 8. INFRASTRUCTURE Roads - Cost 16,329,314 15,366,001 Less Accumulated Depreciation (6,898,648) (6,569,682) 9,430,666 8,796,319

Footpaths - Cost 3,772,374 3,772,374 Less Accumulated Depreciation (3,321,012) (3,240,732) 451,362 531,642

D rainage - Cost 3,809,912 3,747,692 Less Accumulated Depreciation (3,678,612) (3,678,612) 131,300 69,080

Parks & Ovals - Cost 1,486,529 1,332,701 Less Accumulated Depreciation (109,157) (80,367) 1,377,372 1,252,334

Carpark Construction - Cost 93,668 34,888 Less Accumulated Depreciation (5,155) (4,336) 88,513 30,552

Public Art Collection - Cost 80,300 60,300 Less Accumulated Depreciation (4,274) (1,103) 76,026 59,197

11,555,240 10,739,124

Page 75

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

8. INFRASTRUCTURE (Continued)

Movements in Carrying Amounts

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

Parks and Carpark Public Art Roads Footpaths Drainage Ovals Construction Collection Total $ $ $ $ $ $ $

Balance as at 1July 2009 8,796,319 531,642 69,080 1,252,334 30,552 59,197 10,739,124

Additions 963,312 - 62,220 153,828 58,781 20,000 1,258,142

(Disposals) ------

Impairment - (losses) ------reversals ------

Depreciation (Expense) (328,966) (80,280) - (28,790) (819) (3,171) (442,026)

Balance as at 30 June 2010 9,430,665 451,362 131,300 1,377,372 88,514 76,026 11,555,240

Page 76

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 $ $ 9. TRADE AND OTHER PAYABLES

Current Sundry Creditors 1,549,906 1,482,531 Accrued Salaries and Wages 83,400 80,600 Other Accrued Expenses 232,221 14,544 GST payable 1,351,444 107,340 3,216,970 1,685,015

10. LONG TERM BORROWINGS

Current Loans - 6,455,000

(Short Term Loan, expired 30 June 2010, with the Western Australia Treasury Corporation)

Additional detail on borrowings is provided in Note 22.

11. PROVISIONS

Current Provision for Annual Leave 447,074 362,049 Provision for Long Service Leave 223,114 194,234 Provision for Sick Leave 46,140 57,367 716,328 613,650

Non-Current Provision for Long Service Leave 48,942 48,456 48,942 48,456

Page 77

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010 2010 2010 Revised 2009 $ Budget $ $ 12. RESERVES - CASH BACKED (a) Aged Transport Subsidy Opening Balance - - - Amount Set Aside / Transfer to Reserve 13,122 14,000 - Amount Used / Transfer from Reserve (3,682) - - 9,440 14,000 - (b) Infrastructure Development & Maintenance Opening Balance - - 256,880 Amount Set Aside / Transfer to Reserve - - 13,863 Amount Used / Transfer from Reserve - - (270,743) - - - (c) Office Automation Opening Balance - - 150,590 Amount Set Aside / Transfer to Reserve - - 8,127 Amount Used / Transfer from Reserve - - (158,717) - - - (d) Underground Power Opening Balance - - 209,264 Amount Set Aside / Transfer to Reserve - - 11,293 Amount Used / Transfer from Reserve - - (220,557) - - - (e) Plant Replacement Opening Balance - - 335,638 Amount Set Aside / Transfer to Reserve 62,000 - 18,113 Amount Used / Transfer from Reserve - - (353,751) 62,000 - - (f) Bore Replacement Opening Balance - - 55,309 Amount Set Aside / Transfer to Reserve - - 2,985 Amount Used / Transfer from Reserve - - (58,294) - - - (g) Golf Course Land Opening Balance - - - Amount Set Aside / Transfer to Reserve 30,931 30,000 - Amount Used / Transfer from Reserve - - - 30,931 30,000 -

Page 78

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010 2010 2010 Revised 2009 $ Budget $ $ 12. RESERVES - CASH BACKED (Continued)

(h) Parking Opening Balance 788,441 788,441 748,069 Amount Set Aside / Transfer to Reserve 39,101 40,000 40,372 Amount Used / Transfer from Reserve (210,000) (210,000) - 617,542 618,441 788,441 (i) Public Art Opening Balance - - 105,907 Amount Set Aside / Transfer to Reserve - - 5,715 Amount Used / Transfer from Reserve - - (111,622) - - - (j) Depot Facilities Opening Balance - - 30,906 Amount Set Aside / Transfer to Reserve - - 1,668 Amount Used / Transfer from Reserve - - (32,574) - - - (k) Future Fund Opening Balance - - - Amount Set Aside / Transfer to Reserve 4,798,172 4,508,172 - Amount Used / Transfer from Reserve (469,367) - - 4,328,805 4,508,172 - (l) Pool Upgrade Opening Balance - - 57,593 Amount Set Aside / Transfer to Reserve 283,682 283,682 3,108 Amount Used / Transfer from Reserve (55,000) (55,000) (60,701) 228,682 228,682 - TOTAL CASH BACKED RESERVES 5,277,400 5,399,295 788,441

All of the cash backed reserve accounts are supported by money held in financial insti tutions and match the amounts shown as restricted cash in Note 3 to this report. In accordance with council resolutions in relation to each reserve account, the purpose for which the reserves are set aside are as follows:

A ged Transport Subsidy - newly created account to receive proceeds from sale of Aged Community Bus and to provide a subsidy to the CAPPS regional service for aged patrons' transport. Infrastructure Development & Maintenance - to provide for the future planning and undertaking of capital and infrastructure works in the town. Underground Power - to provide for the planning or installation of underground power.

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

12. RESERVES - CASH BACKED (Continued)

Plant Replacement - to provide for the replacement of major items of heavy plant. Bore Replacement - to finance the replacement of bores required for the reticulation of council‟s facilities. Golf Course Land - newly created account for the receipt of the sale of an easement on the Golf Course land to Western Power and to provide assistance for the future development of the Lake Claremont Golf Course. Parking - to provide for the purchase of land for car parking in accordance with Clause 33(2) of the Town of Claremont Town Planning Scheme 3. Public Art - to assist with the programmed purchase and development of Public Art assets throughout the Town. Depot Facilities – to provide for the upgrade and renovation of the facilities at the council depot at the corner of Shenton and Davies Roads. Future Fund – newly created to received proceeds of Lakeway Subdivision sales and to provide for the future planning and undertaking of capital and infrastructure works in the town. Pool Upgrade – to fund major maintenance of the Claremont Pool.

Council advertised on 5 November 2008 that it would change the use of the above Reser ve Funds to fund an amendment to the Adopted Budget 2008-09, temporarily, and then reinstated from future sales of Lakeway Lots. Where possible funds were used to offset specific Reserve-related purposes, otherwise the Reserve Fund purpose was temporarily changed to accommodate the budget amendment. During 2009-10, the Pool Upgrade Reserve had been adequately reinstated.

13. RESERVES - ASSET REVALUATION 2010 2009 $ $ Asset revaluation reserves have arisen on revaluation of the following classes of assets:

(a) Land Balance as at 1 July 2009 7,466,668 9,100,000 Transfer to Retained Surplus on Disposal (3,966,661) (1,633,332) Balance as at 30 June 2010 3,500,007 7,466,668

14. NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash

For the purposes of the cash flow statement, cash includes cash on hand and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the balance sheet as follows: 2010 2010 Revised 2009 $ Budget $ $ Cash and Cash Equivalents 10,910,874 7,435,829 4,464,633

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010 2010 2010 Revised 2009 $ Budget $ $

(b) Reconciliation of Net Cash Provided By (Used In) Operating Activities to Net Result

Net Result 5,574,804 4,534,017 1,147,410 Depreciation 836,555 803,630 932,574 (Increase)/Decrease in Receivables 23,041 152,750 229,975 (Increase)/Decrease in Deferred Rates Receivables 5,388 - 11,570 (Profit)/Loss on Sale of Asset (5,771,885) (5,217,428) (3,922,153) Increase/(Decrease) in Payables 1,534,163 (500,000) (321,648) Increase/(Decrease) in Employee Provisions 103,164 40,000 28,083 Grants/Contributions for the Development of Assets (325,079) (629,713) (232,215)

Share of surplus from Joint Venture's accounted for using the equity accounting method (109,602) - (94,052) Net Cash Provided By (Used In) Operating Activities 1,870,548 (816,744) (2,220,457)

(c) Undrawn Borrowing Facilities Credit Standby Arrangements Credit Card limit 14,000 10,000 10,000 Credit Card Balance at Balance Date - - (1,711) Total Amount of Credit Unused 14,000 10,000 8,289

15. CONTINGENT LIABILITIES

The Town of Claremont had no contingent liabilities as at 30 June 2010.

16. CAPITAL AND LEASING COMMITMENTS

(a) Finance Lease Commitments

Council does not have any finance lease commitments as at 30 June 2010.

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

(b) Operating Lease Commitments 2010 2009 $ $ Non-cancellable operating leases contracted for but not capitalised in the accounts.

Payable: - not later than one year 24,673 67,486 - later than one year but not later than five years 5,378 5,450 30,051 72,936 (c) Capital Expenditure Commitments

Council does not have any capital expenditure commitments as at 30 June 2010.

17. JOINT VENTURE

The Town of Claremont takes part in the Western Metrop olitan Regional Council Waste Transfer Station Joint Venture. See Note 4.

18. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY 2010 2009 $ $ Governance 2,407,610 2,454,025 Law, Order & Public Safety 75,318 22,755 Health 96,755 89,810 Education and Welfare - 258 Community Amenities 144,544 200,823 Recreation and Culture 5,733,548 5,139,604 Transport 11,157,825 10,333,885 Economic Services 6,345,477 13,537,315 Other Property and Services 278,782 271,412 Unclassified 12,736,428 6,171,478 38,976,288 38,221,365

Page 82

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

2010 2009 2008 19. FINANCIAL RATIOS

Current Ratio 2.960 0.904 1.012 Untied Cash to Trade Creditors Ratio 1.759 1.897 0.345 Debt Ratio 0.102 0.230 0.309 Debt Service Ratio 0.375 0.260 0.010 Gross Debt to Revenue Ratio - 0.433 1.017 Gross Debt to Economically Realisable Assets Ratio - 0.247 0.346 Rate Coverage Ratio 0.460 0.496 0.681 Outstanding Rates Ratio 0.005 0.008 0.010

The above ratios are calculated as follows:

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

Untied Cash to Trade Creditors Ratio Untied cash Unpaid trade creditors

Debt Ratio Total liabilities Total assets

Debt Service Ratio Debt Service Cost (Principal & Interes t) Available operating revenue

Gross Debt to Revenue Ratio Gross debt Total revenue

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

Net rate Rate Coverage Ratio revenue Operating revenue

Rates Outstanding Rates Ratio outstanding Rates collectable

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

20. TRUST FUNDS

Funds held at balance date over which the Municipality has no control and which are not included in the financial statements are as follows: Balance Amounts Amounts Balance 01/07/09 Received Paid 30/06/10 $ $ ($) $ ANZAC Cottage 787 - - 787 Building Construction Industry Training Fund 3,519 15,857 (15,288) 4,088 Builders Registration Board Levy 414 719 (680) 453 Claremont Station Master's Residence 515 - - 515 Election Nomination Deposits 1,360 800 (800) 1,360 Footpath Deposits 190,690 41,746 (75,125) 157,311 Footpath Deposits since 01/07/06 98,737 - - 98,737 Footpath Deposits 07/08 47,563 22,800 (27,300) 43,063 Footpath Deposits 07/08 No Vendor # 161,583 623,673 (349,802) 435,454 Hall Hire Bonds 3,200 1,200 (600) 3,800 Heritage Trust 11,467 - - 11,467 Museum 991 - - 991 Performance Bonds 25,432 18,000 - 43,432 Performance Bonds No Vendor # 5,464 - - 5,464 Plan Deposits 100 - - 100 Pool Coaching Rights 3,500 - - 3,500 Skateboard Arena Donations 100 - - 100 Staff Christmas Party/Fundraising 192 888 (193) 887 Unclaimed Monies 2,873 400 - 3,273 Use of Verge 2,916 - - 2,916 Youth Advisory Council 3,725 - - 3,725 565,128 821,423

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21. DISPOSA LS OF ASSETS - 2009-10 FINANCIAL YEAR

The following assets, by Function, were disposed of during the year.

Net Book Value Sale Price Profit (Loss) Actual Budget Actual Budget Actual Budget $ $ $ $ $ $ Law, Order & Public Safety 17,775 20,870 18,182 13,500 407 (7,370) Environmental Health Services 12,102 13,390 11,273 11,000 (830) (2,390) Welfare - - 12,727 14,000 12,727 14,000 Community Amenities 14,123 15,194 7,088 4,000 (7,035) (11,194) Recreation & Culture 55,740 74,475 35,782 36,000 (19,959) (38,475) Transport - 6,480 - 8,300 - 1,820 Economic Services 7,496,805 7,498,525 13,268,510 12,774,672 5,771,705 5,276,147 Other Property and Services 98,133 114,974 113,002 99,864 14,869 (15,110) 7,694,678 7,743,908 13,466,563 12,961,336 5,771,885 5,217,428

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010

22. INFORMATION ON BORROWINGS

(a) Debenture Repayments

Principal New Principal Principal Interest 1-Jul-09 Loans Repayments 30-Jun-10 Repayments $ $ Actual Budget Actual Budget Actual Budget Particulars $ $ $ $ $ $ Economic Services Lakeway Subdivision 6,455,000 0 6,455,000 6,455,000 0 0 197,346 150,000

6,455,000 0 6,455,000 6,455,000 0 0 197,346 150,000

During 2009-10 Council fully repaid outstanding loan principal from proceeds of Lakeway Residential lots' sales.

(b) New Debentures - 2009- 10

Council did not undertake any new debentures during 2009-10.

Council had no unspent debentures as at 30 June 2010.

(d) Overdraft

Council has no Overdraft Facility.

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2010

23. RATING INFORMATION - 2009 -10 FINANCIAL YEA R

Rate Number Rateable Rate Interim Back Total Budget Budget Budget Budget c/$ of Value Revenue Rates Rates Revenue Rate Interim Back Total Properties $ $ $ $ $ Revenue Rate Rate Revenue RATE TYPE $ $ $ $ General Rate

Residential 6.4707 2,931 77,177,954 4,993,954 165,506 - 5,159,460 4,993,954 2,395 - 4,996,349 Commercial 6.4707 162 20,426,020 1,321,706 252,926 - 1,574,632 1,321,707 375,000 - 1,696,707 Industrial 6.4707 60 6,329,606 409,570 1,630 - 411,200 409,570 - - 409,570 Miscellaneous 6.4707 4 589,956 38,174 - - 38,174 38,174 - - 38,174

Sub-Totals 3,157 104,523,536 6,763,404 420,062 - 7,183,466 6,763,405 377,395 - 7,140,800 Minimum Minimum Rates $

Residential 925 1,345 14,457,008 1,244,125 212 - 1,244,337 1,244,125 14,425 - 1,258,550 Commercial 925 24 238,978 22,200 (3,700) - 18,500 22,200 - - 22,200

Sub-Totals 1,369 14,695,986 1,266,325 (3,488) - 1,262,837 1,266,325 14,425 - 1,280,750 8,446,303 8,421,550 Specified Area Rate (refer - note 24) - 8,446,303 8,421,550 Discounts (refer note 26) - - Totals 8,446,303 8,421,550

Page 87

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

24. SPECIFIED AREA RATE - 2009- 10 FINANCIAL YEAR Council does not maintain a Specified Area Rate.

25. SERVICE CHARGES - 2009-10 FINANCIAL YEAR Council did not levy a Service Charge.

26. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE- OFFS - 2009-10 FINANCIAL YEAR Type Disc % Total Budget Cost/ Cost/ Value Value $ $ Rates Write Offs Rates N/A 1,251 1,000

27. INTEREST CHARGES AND INSTALMENTS - 2009-10 FINANCIAL YEAR

Interest Admin. Revenue Budgeted Rate Charge $ Revenue % $ $ Interest on Unpaid Rates 11.0 N/A 3,712 18,700 Interest on Instalments Plan 5.5 N/A 42,950 35,000 Interest on FESA levy 11.0 N/A 1,640 1,100 Charges on Instalment Plan N/A 15 52,065 47,200 100,367 102,000

Ratepayers had the option of paying rates in four equal instalments, due on 18 August 2009, 20 October 2009, 22 December 2009 and 23 February 2010. Administration charges and interest applied for the final three instalments. 2010 2009 28. FEES & CHARGES $ $

General Purpose Funding 76,531 55,248 Governance 408 - Law, Order, Public Safety 5,916 10,729 Health 94,842 68,186 Community Amenities 359,324 295,296 Recreation & Culture 828,649 1,027,452 Transport 591,736 575,215 Economic Services 444,015 348,221 Other Property & Services 20,235 27,963 2,421,656 2,408,310

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

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

29. GRANT REVENUE 2010 2009 $ $ By Nature and Type: Grants and Subsidies - operating 359,563 415,818 Grants and Subsidies - non-operating 325,079 232,215 684,642 648,033

By Program: General Purpose Funding 182,257 257,150 Recreation and Culture 114,703 187,846 Transport 387,682 160,029 Economic Services - 31,008 684,642 648,033

2010 2010 2009 30. COUNCILLORS’ REMUNERATION $ Budget $ $ The following fees, expenses and allowances were paid to council members and/or the mayor.

Meeting Fees 66,049 66,000 66,000 Mayor & Deputy Mayor Allowance 6,320 6,250 6,252 Travelling Expenses 4,409 2,500 271 Telecommunications Allowance 15,012 15,000 15,000 Other Costs 4,692 3,500 4,284 96,482 93,250 91,807

31. EMPLO YEE NUMBERS 2010 2009

The number of full-time equivalent employees at balance date 67 71

Page 89

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010 32. MAJOR LAND TRANSACTIONS

Lakeway (Drive-in Site) Development

(a) Details

Development commenced in January 2007 for the 39 lot residential sub-division with practical completion achieved in readiness for the auction of Stage One in September 2008. Settlement on seven (7) lots was completed as at the end of the 2008-09 financial year, and settlement on seventeen (17) lots was completed at the end of the 2009-10 financial year. The disposal of the balance (15 lots) will be subject to further consideration by Council.

2010 2009 (b) Current year transactions $ $

Operating Income - Profit on sale 5,282,577 3,942,755

Ca pital Income - Sale Proceeds 12,763,172 7,023,000

Capital Expenditure - Development Costs 324,894 2,193,482

The above capital expenditure is included as land held for resale (refer Note 5) .

There are no liabilities in relation to this land transaction as at 30 June 2010.

(c) Expected Future Cash Flows 2011 2012 2013 2014 2015 Total $ $ $ $ $ $ Cash Outflows - Development Costs (151,416) - - - - (151,416) (151,416) - - - - (151,416) Cash Inflows - Sale Proceeds 15 Remaining Lots 12,000,000 - - - - 12,000,000 12,000,000 - - - - 12,000,000

Net Cash Flows 11,848,584 - - - - 11,848,584

33. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Council did not participate in any trading undertakings or major trading undertakings during the 2009-10 financial year.

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

34. FINANCIAL RISK MANAGEMENT

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:

Carrying Value Fair Value 2010 2009 2010 2009 $ $ $ $ Financial Assets Cash and cash equivalents 10,910,874 4,464,633 10,910,874 4,464,633 Receivables 407,374 438,011 407,374 438,011 11,318,248 4,902,644 11,318,248 4,902,644

Financial Liabilities Payables 3,216,970 1,685,015 3,216,970 1,685,015 Borrowings - 6,455,000 - 5,994,563 3,216,970 8,140,015 3,216,970 7,679,578

Fair value is determined as follows:

• Cash and Cash Equivalents, Receivables, Payables – estimated to the carrying value which approximates net market value.

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

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Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

34. FINANCIAL RISK MANAGEMENT (Continued)

(a) Cash and Cash Equivalents

Council‟s objective is to maximise its return on cash and investments whilst maintaining an adequate level of liquidity and preserving capital. The finance area manages the cash and investments portfolio with the assistance of independent advisers (where applicable). Council has an investment policy and the policy is subject to review by Council. An Investment Report is provided to Council on a monthly basis setting out the make-up and performance of the portfolio.

The major risk associated with investments is price risk – the risk that the capital value of investments may fluctuate due to changes in market prices, whether these changes are caused by factors specific to individual financial instruments of their issuers or factors affecting similar instruments traded in a market.

Cash and investments are also subject to interest rate risk – the risk that movements in interest rates could affect returns.

Another risk associated with cash and investments is credit risk – the risk that a contracting entity will not complete its obligations under a financial instrument resulting in a financial loss to Council.

Council manages these risks by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees. Council also seeks advice from independent advisers (where applicable) before placing any cash and investments.

30-Jun-10 30-Jun-09 $ $ Impact of a 1% (*) movement in interest rates on cash:

- Equity 132,685 54,102 - Income Statement 132,685 54,102

Notes:

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

Recent market volatility has seen large market movements for certain types of investments.

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

34. FINANCIAL RISK MANAGEMENT (Continued)

(b) Receivables

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.

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:

30-Jun-10 30-Jun-09

Percentage of Rates and Annual Charges

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

Percentage of Other Receivables

- Current 31.75% 11.34%

- Overdue 68.25% 88.66%

Page 93

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

35. FINANCIAL RISK MANAGEMENT (Continued) (c) Payables Borrowings

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:

Due Due Due Total Carrying within between after contractual values 1 year 1 & 5 years 5 years cash flows $ $ $ $ $ 2010

Payables 3,216,970 - - 3,216,970 3,216,970 Borrowings - - - - - 3,216,970 - - 3,216,970 3,216,970

2009

Payables 1,685,015 - - 1,685,015 1,685,015 Borrowings 6,455,000 - - 6,455,000 6,455,000 8,140,015 - - 8,140,015 8,140,015

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NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

35. FINANCIAL RISK MANAGEMENT (Continued)

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.

The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk: Weighted Average Effective >1<2 >2<3 >3<4 >4<5 Interest <1 year years years years years >5 years Total Rate $ $ $ $ $ $ $ % Year Ended 30 June 2010 Borrowings

Fixed Rate Debentures 0 0 0 0 0 0 0 0.00% Weighted Average Effective Interest Rate 0.00%

Year Ended 30 June 2009 Borrowings

Fixed Rate Debentures 6,455,000 0 0 0 0 0 6,455,000 3.28% Weighted Average Effective Interest Rate 3.28%

Page 95

Town of Claremont Annual Report 2009 – 2010

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

35. POST BALANCE EVENTS

Council Administration and Library Building On Thursday 18 November 2010, Council‟s Administration and Library building located at 308 Stirling

Highway, Claremont suffered extensive damage due to fire. The Fire started at approximately 6.40pm within the ceiling space of the Library and spread through the roof space across the entire building. While the cause was determined to be electrical, fire investigators were unable to determi ne the exact source due to the extent of damage. Damage was significant with the building, in the main, gutted leaving the structure shell and walls. The building and contents are insured for replacement through Councils insurer, Local Government Insura nce Service (LGIS). Councils insurance also covers professional (architectural/engineers/consultants) fees associated with the reconstruction of the building together with business interruption cover. It is anticipated reconstruction of the building will be covered, based on returning the building to its pre-fire condition, through insurance and as such will have limited impact on Councils financial position. A firmer understanding of the cost and relative cover will be understood once reinstatement costs have been determined through the rebuild process. The event however does provide an opportunity for Council to purpose design and build a premise‟s which will provide greater functionality and to service the Town into the future. This option will be explored during the rebuild process. It should be noted however that any cost difference between such an option and the „reinstate to pre-fire condition‟ will be borne by Council. It is anticipated that costs relating to the establishing tempora ry premises (to house Councils administration during the reconstruction period) will require Council funds above that provided by Councils business interruption cover. Funding for this is expected to be covered through anticipated savings against the 2010- 11 Budget.

Purchase of Commercial Property At its ordinary meeting of the 21 December 2010, Council resolved to purchase commercial property located at Lot 103 (331 -333) Stirling Highway, Claremont. The property is located within the Town‟s central business district and comprises improvements and parking access. Accommodating a supermarket „Claremont Fresh‟, Council s offer of $11million plus GST was accepted by the vendor and is subject to Council completing the requirements of s. 3.59 of the Local Government Act. The business plan prepared for the purchase of the property was advertised on 25 October 2010 and closed on 6 December 2010. Fourteen submissions were received, 12 supporting the proposal and 2 against. Funding for the acquisition is proposed to be $3.5 million from the Future Fund Reserve and the balance of $7.5 million by loan. This requires a variation to the Annual Adopted Budget 2010 -11 and will involve advertising of the loan proposal. Council has reviewed the Town‟s financial position and believe that the fundamentals remain very strong and that the purchase the property can be undertaken without putting the Town at unacceptable risk financially because: • The land is a first class asset • Financing interest payments is within the Town‟s capacity • Interest on the loan can be more than offset against interest earned on investment of funds generated from land sales • If Council agrees to lease the property for a five year term the interest payments would be covered fully or mostly by rent.

Page 96

PO Box 54 CLAREMONT WA 6910 39 Gugeri Street CLAREMONT WA 6010

TOWN OF CLAREMONT

Ph (08) 9285 4300 Fax (08) 9285 4301 [email protected] www.claremont.wa.gov.au

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