Annual Report 2018 | 2019 Welcome

Welcome to Country Contents On behalf of the community, the City of Bunbury wishes to respectfully acknowledge the Welcome to Country...... 3 traditional owners of Welcome to Bunbury...... 4 this land, the Wardandi Mayor’s Message...... 5 Noongar people, and Council...... 6 pay our respects Operational Structure...... 8 to elders both Theme 1 past and present. Our Community and Culture...... 12 Theme 2 Our Economy...... 20 Theme 3 Our Places and Spaces...... 24 Theme 4 Our City...... 34 Auditors Report and Financial Statements...... 40

City of Bunbury : Annual Report 2018 - 2019 3 Welcome to Bunbury Mayor’s Message

On behalf of the Bunbury City Council I am delighted to present the 2018/2019 Annual Bunbury is an accessible, diverse and vibrant city, where all people are valued equally. Report. Once again our staff have assembled and presented information in an easy-to-read Located about 180km south of Perth, the City of Bunbury is one of the fastest- document including a number of comparative graphs and tables plus pictures showing growing regional cities in Australia and widely recognised as the second capital city some of the many achievements during this period. of Western Australia. Bunbury’s population is estimated at almost 32,000 of its biggest attractions offering residents a variety of Overall the report demonstrates the continuing during the period are mostly unnoticed to the general (2019 ABS statistics), although the Bunbury Geographe facilities, schools, shops, pubs and beaches all within improvement and progress of our City in areas where the community however those of us who do notice greatly region, which includes the City of Bunbury and easy reach. It has everything a family needs including City Council has primary responsibility. I am also pleased to appreciate the effort across all areas. surrounding shires of Harvey, Dardanup and Capel, has public and private schools, tertiary education, and a observe the growing investor confidence particularly from The State Government appointed Bunbury Development a collective population of about 92,000 residents. The range of health services. Not to mention an extensive Bunbury-based property owners and developers. Committee continues its oversight of major projects that South West region, to which Bunbury acts as a hub, has and diverse events calendar. The City Council continued to provide financial support to continue over multiple reporting periods. These are the a total population of 180,000. The City of Bunbury will continue to grow, develop organisations running events this past 12 months, including Transforming Bunbury Waterfront project, Mangrove Cove Bunbury is a beautiful place to live, work and visit and and improve thanks to these qualities and the massive regional, state and national title sporting events. Many project, Glen Iris structure plan and Withers structure has something for everyone. The quality of life is one potential for investment and growth in our region. cultural events were also supported and the feedback plan. Each of these projects are progressing and while they I receive from hospitality and tourism business owners are matters for the State Government to report, they are welcomed this support as increased numbers of visitors significant projects for our City and have Council participation take advantage of purchasing goods and services while at committee and technical working group levels. Bunbury: welcoming and enjoying their visit to our City and region. The Annual Report is by nature reporting on historical Values full of opportunities Vision The central business district in our City continues to receive events however there is much to look forward to in the attention. Improvements during the reporting period immediate future with a number of WE ARE OPEN include landscaping, street lighting and street cleaning. transformational projects well > We are open to opportunities WE ARE COMMUNITY WE ARE BRAVE With support of the State Government attention has also advanced which will provide further > We actively listen and think things > We are one team > We lead the change, we own it been directed to Withers and Glen Iris and will continue direct and indirect benefits to through > We keep each other safe > We trust and empower each other over subsequent reporting periods. Acknowledging the our community. strong financial support by the State Government, sporting > We are inclusive and treat > We display empathy and respect > We have the difficult I record my appreciation to the facility improvements at Hay Park include increased playing everyone equally conversations early Elected Members, the CEO and > We have fun and celebrate our field lighting and the start of replacing aged change rooms > We are honest and open in our successes > We hold ourselves to the highest his Executive team and all staff with contemporary buildings expected to be completed in communications standard and the many volunteers who > We work together to achieve great the next financial year. > We are open to feedback to outcomes > We have the courage to improve invest their time, passion and improve our performance and simplify The City’s financial position remains strong with responsible energy in our City of Bunbury. reserve fund balances to cater for future needs, and a I commend this report to our modest level of borrowing along with an affordable rate community and all of increase. The Council has continued to invest in maintaining our stakeholders. and upgrading community assets which have a collective value of close to $700 million. The contribution by about 300 full-time equivalent staff in all areas of the City’s operations is greatly appreciated. While the Council mainly focuses on broader strategic Gary Brennan matters, operationally our Executive team and entire staff Mayor of Bunbury led by CEO Mal Osborne perform to a very high standard. The productivity and efficiency improvements achieved

4 5 Council Council

Elected Members The Council of the City of Bunbury is made up of 13 elected representatives, comprising 12 Councillors plus a popularly elected Mayor. The Deputy Mayor is elected by the Council following each ordinary Local Government election. Note that the Council has held over a vacancy since March 2018 following the resignation of former Cr Joel McGuinness.

Councillors are elected for a four-year term, with half of Councillor Remuneration their terms expiring every two years. Local Government In accordance with the Local Government Act 1995 Mayor elections are currently held on the third Saturday in Gary Brennan received a Mayoral allowance of $61,000, October every two years; the next ordinary election being Mayoral sitting fee of $30,000 and a Communications and 19 October 2019. IT allowance of $3,500. Each of the Councillors received a MAYOR DEPUTY MAYOR COUNCILLOR COUNCILLOR Council meetings are held on Tuesday evenings on a Councillor sitting fee of $25,000 and a Communications and Gary Jaysen Brendan Michelle fortnightly meeting cycle, with agenda briefings taking Brennan Miguel Kelly Steck IT allowance of $3,500, with Deputy Mayor Jaysen Miguel Term expires 16 October 2021 Term expires 16 October 2021 Term expires 19 October 2019 Term expires 16 October 2021 place on the alternate Tuesday. receiving an additional $15,250 Deputy Mayoral allowance.

Councillor Meeting Attendance The number of Council and Committee meetings held during the year ended 30 June 2019 and the numbers of those meetings attended by each Elected Member is as follows:

Disability Ordinary Special Youth Access and International CEO Council Council Audit Policy Heritage Advisory Roadwise Inclusion Relations Performance Meeting Meeting Committee Committee Committee Council Committee Committee Committee Review Panel

24 MEETINGS 1 MEETING 3 MEETINGS 5 MEETINGS 6 MEETINGS 4 MEETINGS 24 MEETINGS 4 MEETINGS 3 MEETINGS 3 MEETINGS

COUNCILLOR COUNCILLOR COUNCILLOR COUNCILLOR Mayor Gary Brennan 19 1 0 5 3 3 James Karen Betty Sam Hayward Steele McCleary Morris Dep. Mayor Jaysen Miguel 23 0 3 5 3 Term expires 16 October 2021 Term expires 16 October 2021 Term expires 19 October 2019 Term expires 19 October 2019 Cr Murray Cook 24 1 1

Cr Tresslyn Smith 23 1 5 2

Cr James Hayward 21 1 1 3 3

Cr Todd Brown 21 0 2 3

Cr Betty McCleary 23 1 3

Cr Monique Warnock 21 1

Cr Brendan Kelly 24 1 6 4

COUNCILLOR COUNCILLOR COUNCILLOR COUNCILLOR Cr Sam Morris 24 1 4 Monique Murray Tresslyn Todd Cr Michelle Steck 17 0 1 1 Warnock Cook Smith Brown Term expires 19 October 2019 Term expires 19 October 2019 Term expires 16 October 2021 Term expires 16 October 2021 Cr Karen Steele 21 1 1 5 3

Attended as Deputy

City of Bunbury : Annual Report 2018 - 2019 7 Operational structure Operational Structure

I am pleased to provide my report for the 2018/19 Annual Report as Chief Executive We have been actively engaging with Westport regarding Officer. This report will recap the achievements of the City of Bunbury and the key issues the Bunbury Port and the consideration of our port playing a greater role in the State’s freight task needs. we have faced over the past 12 months. The City has also continued to actively participate in the implementation of the Bunbury Geographe Bunbury continues to develop and grow while offering an • Review of CBD parking arrangements completed with a Growth Plan, the Bunbury Geographe Regional Tourism exciting vibrancy across our community. We are fortunate relaxation of restrictions of street parking and shoppers Strategy and the South West Regional Waste Project. to have a wide choice of lifestyles, as well as taking our car parking We continue to engage regularly with the Chamber of regional leadership obligations seriously. The past year has • CBD revitalisation project initiated including the Commerce and Industry, the South West Development seen significant advancements in a number of areas and installation of free WiFi points to CBD Commission, Regional Development Australia South West, with the opportunity to learn new roles. We said goodbye the delivery of key projects, which have included; • Street lighting upgrades including new LED units on Southern Ports, local and federal parliamentarians and to some valuable staff members and we also welcomed • Signing a new five-year contract with Cattleyard Prinsep – Victoria Street, Wellington – Victoria Street the government of the day to advance opportunities for new staff to the City; bringing with them new energy, Promotions for the annual delivery of the “Groovin the Bunbury and the region. ideas and experiences. I would like to say a special thank • Finalisation of sales and development contract for the Moo” concert. you to Stephanie Addison-Brown for her service to the sale of Lot 1881 Koombana Drive. The City continues to work very closely with our Bunbury • Koombana Bay revitalisation project completed Geographe partners including the Shires of Harvey, City in the role of Director Corporate and Community • Free commercial and residential graffiti removal kits Services. Stephanie resigned to take on the very exciting • The City’s new Works Depot at Picton was completed in Dardanup, Collie, Donnybrook, Boyup-Brook and Capel, provided for affected properties opportunity of CEO at the Shire of Augusta Margaret River. early 2018/19 as well as other local governments in the South West. • Continued waste education including the introduction of The City is also establishing relationships with I would like to thank the Elected Members for their • Demolition of the old Works Depot at Nyutsia Avenue the Container Deposit Scheme and household drop off metropolitan local governments who are seen to be contribution during the past 12 months. With the began points at City facilities leaders in the areas of community engagement, activation forthcoming year being an election year, this may see • Local Area Plan process for the Racecourses and Nyutsia • Upgrade of public toilets and back-of-house change and economic development so we can share ideas and some new faces on the City of Bunbury Council and for Avenue/Ecclestone Street/Barr Road precinct continuing rooms at Bunbury Regional Entertainment Centre (BREC) learn from each other. those who will not be renominating; I wish to recognise to create two Universal Access Toilets for both the public The City has also been actively engaging with our your services as Elected Members to the community of and performers’ use businesses within the region to assist with what is a very Bunbury. • Stirling Street Arts Centre redevelopment planning difficult retail period. One-on-one meetings with business I would like to take this opportunity to also thank the staff completed owners have been held by our Economic Development for their continued support and contribution to delivering • Refurbishment of the Power Boat Club public toilets department which has assisted with the development the multitude of services the City delivers across Bunbury. of the City’s Economic Development Action Plan The Executive Leadership Team and the management • Widened and reconstructed Estuary Drive from railway (currently in draft stage). group who deal with many complex matters are also crossing to Willinge Drive which included the new cycle deserving of special thanks as they work through the way In 2019/20, we will continue moving forward as one team with a continued emphasis on collaboration with our key strategic and operational issues the City faces. • Installation of culvert fronting 5 Mile Brook at Hay Park stakeholders to remain a priority. We are also continuing I see the year ahead as a further opportunity for Bunbury • Repointing of the limestone walls around the Leschenault to review our practices and processes in an effort to to continue to deliver on committed projects, ensure our Inlet continued with the upgrade of the inlet seawall from reduce the amount of red tape and also deliver the best community is engaged and we embrace the opportunities Stirling Street boat ramp to the Parade Hotel service to our customers. Today’s environment, more than that are afforded to us. Together with the staff, I look • Completed Washington Avenue cycle ways ever, requires us to work in close association with others forward to working with the Council and the community in • Energy efficiency measures which resulted with significant to achieve quality outcomes and the continued emphasis seeing Bunbury grow and develop further. savings in utility costs for the City. on establishing relationships to be leaders in the areas of community engagement, activation and economic • Advocacy for the northern interchange alignment with development. the announcement of the Bunbury Outer Ring Road route. We experienced a number of organisational structure Mal Osborne • Completion of Stage 1 of the purpose-built animal hospital and reporting line changes this year, providing some staff Chief Executive Officer and animal attendant facility at the Bunbury Wildlife Park.

City of Bunbury : Annual Report 2018 - 2019 9 Operational structure Operational structure

Corporate Structure

Mal Stephanie Gavin Gary Osborne Addison-Brown Harris Barbour CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR DIRECTOR Office of the Corporate and Corporate and Works Planning and Chief Executive Community Services and Services Development Services Planning for the Future • Governance • Arts and Culture • City Facilities • Community Law, The City undertook a full review of its Strategic that will be delivered over the next four years to Safety and Emergency • Audit and Risk • Corporate Information • Engineering and Civil Community Plan (SCP) during 2017/18, with a new help deliver the goals and objectives of the new Management • Corporate Planning and • Customer Support Operations plan adopted by Council in March 2018 following SCP. Major projects set to either begin or continue • Development consultation and engagement with more than 1500 Reporting • People and Place • Landscape and Open in 2019/20 include: the construction of a new Youth Space Assessment and Building participants through various surveys, workshops, Precinct; improvement works for the City’s parks, • Elected Member • Information and Certification community conversations and focus group sessions. gardens and entry statements; renewal of the foreshore Support Technology • Asset Management • Environmental Health The 2018/19 Annual Report outlines the City’s marine walls in the Leschenault Inlet; upgrading the • Finance • Sport and Recreation • Waste Services achievements against the SCP. • Sustainability, Planning South West Sports Centre change rooms; realigning • People and Safety • Works Administration • Library Services and Urban Design The City’s Integrated Financial Plan (Corporate and widening Koombana Drive east and Ocean Drive; and Community Business Plan) that was reviewed and adopted in May reconstructing drainage on Estuary Drive; and the • Economic Development Development 2019 operationalises the SCP by identifying projects ongoing expansion of the City’s path networks. and Lands • International Relations

10 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 11 Our community and culture : Theme 1

THEME 1 Christmas in the City categories. This saw a wide range of events and activities complement the Bunbury Geographe events calendar to Our Community Christmas in the City is the City of Bunbury’s annual event provide social and economic benefits to the City. A total to celebrate the start of the festive season. Each year of $465,549 was allocated towards projects and events that and Culture sees the event grow and attract more visitors to the CBD support the arts, community and events within Bunbury. from the City and surrounding shires, with about 15,000 attending on 9 December 2018. The 2018 event saw the Sports Marketing Australia Goal: Our objectives: largest number of floats participating in the RAC Street The City was successful in hosting the following events Parade and a captivated crowd watching the performers A safe, healthy and cohesive 1.1 A community where people are safe sourced through the City’s event broker, Sports Marketing on stage during The Apprentice and Traineeship Company and feel safe Australia. As a result, the following five State and National community, with a rich cultural Carols Concert. New attractions at the event this year 1.2 An active community, able to access level sporting competitions were held bringing more than life, and supportive social included an interactive photo area inside an inflatable a wide range of sporting, recreation 10,000 people and more than $5 million into Bunbury: environment. snow globe, themed mini golf, and large inflatable and leisure options Christmas decorations to activate the event area. Event Economic Impact 1.3 A welcoming community, where As in previous years, battery-operated candles were sold for 2018 Karting WA State Championships $262,000 diverse cultures are valued, and a gold coin donation, with all $1,038 of funds raised donated 2018 School Sport Australia U12 National $1,721,340 residents have a sense of belonging to Bunbury Meals on Wheels and Senior Citizens Association. Cricket Championships 1.4 Arts, culture, heritage and events Numerous local community groups and organisations also 2018 Cycling Australia Junior National Road $1,179,000 that enrich our understanding and participated in the RAC Street Parade which enabled them to Championships enjoyment of life, celebrate our promote themselves to the community. 2018 WA State Mixed Ultimate Championship $52,400 identity and bring the community Sky Fest Australia Day Celebrations 2019 U23 Beach Volleyball National $1,975,579 together Championships and Australian Junior Beach 1.5 Establish Bunbury as the most The City of Bunbury SkyFest Australia Day Celebration Volleyball Championships accessible regional city in Australia continues to be a hit each year, with more people choosing Total economic impact to Bunbury $5,190,319 to attend this event every year, including about 40,000 1.6 A community that provides for the in 2019. Just over half of those surveyed had previously GrandFamilies Fun Day particular needs of the young and attended the event, which shows a heavy growth of new the old The annual GrandFamilies Fun Day took place on 17 April patrons attending the event from Bunbury and afield. 2019 with a bumper crowd despite the cloudy weather. Highlights of the event were the live music concert featuring There were more community organisations taking up stalls Katy Steele (one half of band Little Birdy), sideshow alley, than ever, and attendees particularly enjoyed the earlier and the fireworks display which closes out the event. start. GrandFamilies Fun Day is fun family day out, which With more than half (63%) of surveyed attendees stating also links the community to local services. they drove to Bunbury specifically for SkyFest (when not residing in the City), it’s clear that this well-known event is Seniors Week a highlight for many people both within and outside of the To celebrate Seniors Week the City hosted a free walk and Bunbury Geographe region. yoga session at Koombana for local residents, which was followed by a morning tea at the Hello Summer Kiosk in 2018/19 Grant Funding Program November 2018. The morning was a great success with 35 City of Bunbury staff, together with the Bunbury Events participants in attendance. Everyone received a free yoga Advisory Group (BEAG), community and arts funding mat and morning tea. Shanae Norris from Cancer Council panels, had the task of selecting successful applicants for and the City’s Community Safety and Crime Prevention the City’s annual funding program, which comprised of the and Officer attended to distribute information and provide Events, Seed, CBD Summer Events, Community and Arts education to the participants.

City of Bunbury : Annual Report 2018 - 2019 13 Theme 1 : Our community and culture Our community and culture : Theme 1

Permits Youth Precinct opportunity for young people to interact and engage with training across three areas: Social Inclusion and Disability local organisations, and for organisations to connect with Awareness; Building Stronger, Better Connected Clubs; The City’s Events team produced the following number of Bunbury’s Youth Precinct project made significant headway young people and the wider community with about 3,000 and Inclusive Events. Workshops will continue into permits this financial year: in 2018/19, with a site being endorsed by Council (Luciana in attendance. The festival’s commitment to engage young 2019/20, giving participants the tools and skills to make Park) and funding committed for further community Permits 2018/2019 people in every aspect of its development and delivery their programs, services and events more inclusive, as well consultation and concept design development. The Public Event Permits 171 was realised by offering a range of opportunities for young as raising awareness across Bunbury about access and ensuing year will see the finalisation of the concept design, Private Event Permits 29 people to perform, present and exhibit as well as to plan, inclusion in order to offer more options for people with which will be followed by detailed design and ultimately Hay Park Community Hall Permit 40 deliver and volunteer. It also enabled YAC members to disability, carers and their family members. construction. Sporting Ground Bookings 39 develop their skills and leadership abilities as well as to BREC Unisex Accessible Toilets and Showers Athletics Arena Bookings 29 Unleashed shape the creative content of our City. As a result of a City access audit, the Bunbury Regional Wedding Bookings 19 A refreshed Unleashed school holiday program was Co-Design Access Panel Entertainment Centre (BREC) was allocated funding from Busking Permits 15 launched in January 2019 which aims to develop the As part of the MARCIA Research Report implementation, the MARCIA budget to upgrade its unisex accessible toilet Information Distribution Permits 12 capacity of young people residing in Bunbury by providing in the past year the City developed a Co-Design Access as well as to improve access to the backstage change Banner Bookings 10 them with opportunities to improve their skills, develop Panel (CoDAP), one of the key recommendations from the rooms and the installation of a universally accessible Billboard Bookings 13 confidence and contribute to their community. The research. The CoDAP is made up of people with a lived shower. The designs of the upgrades were co-designed Street Appeal Permits 19 program establishes strong foundations and connections experience of disability, disability industry professionals as with the City’s Disability Access and Inclusion Reference between participants, local organisations, businesses, Total 396 well as building, design and planning industry experts. The Group, and Facilities department in August 2018 with the facilitators and City of Bunbury departments and role of the CoDAP is to assist in the design of significant project being completed in February 2019. The upgrades programs. The new structure aimed to appeal to a wide Council has also agreed to begin a 12-month trial of a new City infrastructure and open space projects from an included many elements that went beyond the minimum range of interests and abilities of young people, achieved CBD Street Activity management process, in an effort to experiential perspective. This is to ensure that City projects requirements such as automated sliding doors and extra by offering a variety of categories and skill development reduce red tape and increase vibrancy in the CBD. From 1 are not just achieving compliance to minimum standards drop down hand railing. The improvements to the change opportunities each school holiday period. Categories April 2019 to 31 March 2020, permits are not required for but are meeting community need and expectations, and rooms and addition of an accessible shower allow BREC have been expanded from previous years to target youth busking/street entertainment, information distribution that end users are engaged throughout the project design to now include performers who have access requirements concerns and issues, as highlighted in the 2017 Mission and street charity collection/fundraising as a result of process. whereas previously would not have had capacity to do so. Australia Youth Survey Report (e.g. mental health, body consultation with those conducting street activities, Reconciliation selected affected businesses and extensive research. image, alcohol and drugs). Most events sold out in record City Access Standards time and included an amazing race around Bunbury, junior In addition to the CoDAP the City has developed a set of After almost two years of development the Greater marine biology at the newly opened Dolphin Discovery building and design standards that exceed the minimum Bunbury Reconciliation Action Plan, Reflect, was endorsed Centre, river rafting, film crash course and beatbox requirements of the Building Code of Australia’s Australian by Reconciliation Australia on 21 June 2019. A collaborative workshop. Standards. The standards have been developed using the effort between the City and the Shires of Capel, Harvey Youth Advisory Council (YAC) then Institute of Access Training Australia’s (now Access and Dardanup, South West Development Commission Institute) access audit checklists. These standards are and the local indigenous community, the plan sets It has been a busy 12 months for the YAC. The committee now the new set of guidelines for the design of all future out a one-year action plan encouraging the four local was a key driving force and appointed steering committee City projects. The standards will be regularly review and governments to reflect on where each organisation is at for the Youth Precinct, advocating for young people amended as necessary by the CoDAP. on their reconciliation journey, raise staff awareness and to have a voice on this significant multi-million dollar develop relationships with their local Wardandi Noongar project. The Shift Festival presented by Drug Aware was a Socially Inclusive Communities WA community. fantastic event held during Youth Week WA on 13 April at The City was selected to partner with Inclusion Solutions Safer Communities Bicentennial Square that celebrated and embraced young as part of the Socially Inclusive Communities WA project, people in the Bunbury-Geographe region. There was a which involves the mentoring of Bunbury community This year a strong relationship was formed with the Crime positive and vibrant atmosphere that encouraged youth clubs and groups in making their organisations more Prevention and Diversity Officer at the Bunbury Police station enabling the City to work cohesively within the participation and of course, fun. The event offered an socially inclusive and accepting. The project included

14 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 15 Theme 1 : Our community and culture Our community and culture : Theme 1

Sport and Recreation programming included a number of building history tours, art tours, artist talks and workshops as part of the Bunbury The South West Sports Centre (SWSC) continued its Summer School 2019 program in collaboration with Stirling consultation for the Sport and Recreation Strategy, being a Street Arts Centre. A highlight of the program was the full review of the City’s facilities with City-based sporting Contemporary Photography and Visual Art Practice talk by clubs to determine future requirements. More than 1,750 Nathan Beard, a Perth-based artist working across various engagements have been made throughout the process mediums including photography, video and sculpture. (individuals, sporting clubs and associations), with the strategy to be presented to Council for consideration in Noongar Country is always a popular exhibition. The early 2019/20. theme for the 2018 Noongar Country exhibition, Two Worlds, acknowledged the dichotomy of the world’s 2018/19 saw the completion of the Hay Park South lighting oldest culture within contemporary society. Five of project (a State Government election commitment of $1.3 the participating artists were invited to partake in the million), with Hay Park South now home to three soccer prestigious 2019 Revealed exhibition in Fremantle and were clubs: Bunbury United, Hay Park United, and the South well received. BRAG remains committed to celebrating West Phoenix. community to deliver a wider variety of community safety and supporting local artists through our externally funded pop-up information opportunities. These took place The year also saw the SWSC turnstiles record well in Noongar Arts Development program. over December and January and saw the police van taken excess of half a million patrons frequenting the centre, The Bunbury Biennale was a standout exhibition with 36 to Bunbury’s major shopping centres to promote Crime resulting in a net financial position $292,000 ahead of senior artists from around the State exhibiting work. The Stoppers and tips for home and vehicle safety over the budget highlighted by $125,000 in energy savings against opening night was a huge success attracting well over 400 summer months. Rangers were also in attendance at some budget, a $72,000 improvement in the café against budget, people and many more during the course of the exhibition. of these events. and an $80,000 improvement against budget for crèche/ Travelling exhibitions are always a feature on the BRAG The Safer Community Network website was launched in vacation care programs. photo opp: Multi Sports Pavilion schedule and this year was no exception. Standouts were March 2018 with a focus on empowering the community and Hay Park lighting debut the extremely popular Play On Sport, a NETS Victoria through an all hazards approach. The website encompasses Bunbury Regional Art Gallery show featuring a selection of finalists from the Basil Sellers community safety and emergency management under one The sculpture has been 12 months in the making and was Prize over the past 10 years, and Dead Centre from Art on umbrella making it a one-stop shop for the community. Change defined 2018/19 for the Bunbury Regional Art commissioned by the City of Bunbury and funded by State the Move. This exhibition showed a group of artists from This was created in partnership with WA Police and the Gallery and the team rose to the challenge. Early 2019 Government through Royalty for Regions. The completed around the country celebrating marginalised identities Department of Fire and Emergency Services and features welcomed a governance review, a new director and a new sculpture represents a Noongar face and seeks to merge within the broader spectrum of a multicultural society. updated information from all sources. Noongar Arts Program Officer. These new appointments traditional sculpture and advanced fabrication technology have invigorated the gallery which has been reflected Wardandi Boodja, a five and a half metre steel bust, is to create a striking contemporary artwork that pays deep Glen Iris Community Enhancement in the increased activity and engagement with the the latest piece of public art to be installed in Bunbury. respect to the Noongar people. In December 2018, the City of Bunbury undertook a community over the past few months. community engagement exercise regarding street–level Visitors experienced a diverse schedule of exhibitions this improvements in Glen Iris. The consultation report was past year, ranging from our popular biannual exhibitions completed and the City prepared the Glen Iris Community to digital installations and performance art. As always, Enhancement Action Plan which was launched via a joint a strong and engaging public program encouraged media statement between the City and the Bunbury viewer participation on every level, from graffiti and Development Committee in early 2019. Actions listed street art tours and workshops to figure drawing, textiles within the plan range from immediate-term to long-term and ceramics. The public art workshop with artist Luke 3,500 1,389 862 1,500 activities, with progress to date including the planting of O’Donohoe as part of the Unleashed Program, for example, FACEBOOK FOLLOWERS NEWSLETTER SUBSCRIBERS PAGE VIEWS PER MONTH INSTAGRAM FOLLOWERS additional street trees, installation of additional bins and was fully booked with 20 participants attending and a Electronic engagement with our community is impressive, with BRAG boasting greater social media presence than any a community safety campaign. The plan is available on the waitlist. It is fantastic to see the interest in the arts from other West Australian regional gallery and some of the major Perth galleries City’s website. the youth within the South-West region. BRAG’s public

16 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 17 Theme 1 : Our community and culture Our community and culture : Theme 1

Bunbury Regional and City Library and Withers Bunbury Museum and Heritage Centre • maintaining the Local Heritage Survey (formerly known Community Library as the Municipal Heritage Inventory) and place records in The Bunbury Museum and Heritage Centre’s focus has accordance with legislative requirements, that included The Bunbury Regional and City Library and the Withers been on education programs that reach a wide age range comprehensive updates to the inHerit online database Community Library continue to deliver a targeted, relevant of audiences. This has included a number of exhibitions, • coordination of the popular Heritage Advisory Service and high standard of service to our community. Staff public events and workshops. Total museum visitors from • supporting the City of Bunbury’s internal Development continue to value the partnerships that are formed as part local, intrastate, interstate and overseas for 2018/19 have Coordination Unit (DCU) in providing value adding of delivering our library service, programs and events to been 11,602. heritage advice on development proposals with our community. This includes authors and writers, Bunbury The museum adds to the diversity of attractions within recognised heritage values Regional College, Djidi Djidi Aboriginal School, College Row School, Bunbury High School, Youth Driver Development the region by being open and accessible to visitors and by • providing heritage advice and guidance to the public and Council on numerous interpretation projects and Program, local businesses (Live and Learn Sessions), Alannah contributing to the development of the tourism industry. conservation works and Madeline Foundation, WA Police, Bunbury-Harvey A trial began during the year for the museum to trade Regional Council, Hudson Road Family Centre, Bunbury Tuesday to Sunday, instead of Tuesday to Saturday. Sunday • facilitation of and executive support to the Heritage High School, the Goodnight Nurse, Sensorium Theatre, visitor numbers have increased between 10 to 30 percent Advisory Committee (HAC) on a bi-monthly basis

the Knitters Group, Australian Hearing, Dementia Australia, during the trial period. Since this time, the City has agreed • assistance in the interpretation and implementation of Photo Credit: Bunbury Timber Jetty (Bunbury Local Studies LSC. 2016.45); local aged care facilities, Life Lessons Australia, WA Primary to make provision within future budgets to continue with conservation management plans for Local Government Health, and Bunbury Regional Art Gallery to name a few. Sunday opening hours. owned assets The Bewsher family engaged Bevan Dix to carry out restoration and conservation works on the timber grave In collaboration with other teams at the City, more bike • liaising with State Government agencies and community Cultural Heritage marker of Harriet (d. 1877) and William (d. 1900) Bewsher. racks have been installed at the front of the Bunbury Library. organisations to promote and achieve desirable heritage outcomes This was a success story for the family and it is hoped that New furniture includes collaboration booth seating, which The Strategic Planning and Urban Design team contributed further works can be carried out in the near future to the site has been a fantastic hit with customers. New shelf dividers directly towards achieving Strategic Community Plan • coordination and delivery of the well-attended annual through the assistance of working bees and funding support. with both writing and pictures have helped younger Objective 1.4 in the delivery of the following key services Bunbury Heritage Forum customers identify reading material more readily. and projects throughout the last financial year: The heritage forum held in August 2019 brought together local scholars, historians and those with a passion for Bunbury’s rich cultural heritage to engage in a thought- provoking event. The forum was chaired by Cr Brendan Kelly and delivered a variety of presentations, panel discussion and short films. About 60 people from the local community, Perth and the South West attended the event which was hosted at the Bunbury Museum and Heritage Centre. Topics and speakers included: • Vintage Port: Bunbury Port circa 1900 in Pictures (James Shaw) presented by Aidan Kelly • Works of the Bunbury Timber Jetty Environment and Conservation Society presented by Phil Smith • Archival News Footage of Bunbury’s Historical Community Events presented by John Vukovich and Peter Murphy • The Deconstruction of Bunbury Timber Jetty presented by Kerry Trantham • Reflections on Busselton Port presented by Photo Credit: Iona Bewsher 2019 Dr Colleen Liston

18 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 19 Our economy : Theme 2

THEME 2 City Centre Revitalisation planning staff participated in the State Government’s on-going inquiry into short-stay accommodation The Strategic Planning and Urban Design team was heavily Our Economy (i.e. the impacts of holiday home sharing platforms such involved in organising a Bunbury CBD Revitalisation as Airbnb on local housing and tourism), presenting on workshop that was held over two days in December Bunbury’s policy and regulatory responses and experiences 2018. A small team of notable planning and urban design to the State Parliament’s Economics and Industry professionals (including Evan Jones, Wendy Morris, Standing Committee. Goal: Theme 2 Our objectives: Malcolm Mackay and Jim Higgs) were invited to facilitate the event with the support of the City’s staff. The program A thriving and dynamic Our 2.1economy Bunbury builds on its competitive Sporting and Community Group Rentals for the workshop sessions was put together in a way advantages, supports innovation As of 1 July 2018, the City ceased charging rent to sporting economy, that plays to its that investigated a range of matters affecting the future and celebrates business success and community groups that leased facilities from the City. strengths, and confidently of Bunbury and in particular the ongoing growth and Goal:2.2 A thrivingBunbury and is dynamic known economy,far and widethat plays for to its The change came via an amendment to the Leases and development of the regional city centre. presents to the world. strengths,its and strengths confidently as presents a place to to the live, world. visit Licenses Policy after it was recognised the rents being and do business Attended by representatives from the Bunbury charged varied greatly from group to group. The changes Development Committee, the Department of Planning, to the policy followed significant consultation with the Our objectives: Lands and Heritage and a wide range of key local industry lease holders that included workshops, surveys, financial 2.1 Bunbury builds on its competitive advantages, and community stakeholders, session discussions explored modelling and many different iterations of a possible supports innovation and celebrates business success ideas that were collated and captured within a Bunbury policy. The policy change saw positive and collaborative City Centre Outcomes Report (2019). The report signals relationships between the City and the leaseholders 2.2 Bunbury is known far and wide for its strengths as the preparation of a draft Bunbury City Centre Action Plan established or strengthened. a place to live, visit and do business which will guide public works investment to leverage the development of Bunbury’s city centre over the short to Lot 1881 Koombana Drive long term and the Strategic Planning and Urban Design Following an international marketing campaign to sell team remains actively involved in this on-going task. Lot 1881 Koombana Drive for development, an open The year also saw the Strategic Planning and Urban Design expression of interest process and a closed tender, the team contribute to initiatives and plans happening at the City entered into negotiations with Discovery Holiday state and regional level. For example, the City of Bunbury’s Parks. Negotiations initially began with the sale of Lot 1881

City of Bunbury : Annual Report 2018 - 2019 21 Theme 2 : Our economy Our economy : Theme 2

Koombana Drive, however both parties soon recognising permit from the City’s Visitor Centre and in exchange in its collection and that of other ZAA members, thus other South West attractions to promote the Bunbury the potential in a whole precinct development. complete a survey providing their demographics and to improving sustainability and conservation opportunities Wildlife Park, Bunbury Museum and Heritage Centre and for native animals. After extensive negotiations between the City and provide an insight into their time spent in Bunbury. In the Bunbury Regional Art Gallery. Discovery Holiday Parks were finalised, the contracts were first six months to April 2019, the City saw 472 permits The park was rated number five of Top Things to Do in Wildflower season continues to bring many visitors to signed in the new financial year. The end result: the City given out. The majority of our visitors were travelling in Bunbury with Tripadvisor, with 4,890 Facebook and 1,100 Bunbury and a bespoke flyer was produced, containing a sells Lot 1881 Koombana Drive for $1.8m with Discovery pairs, over the age of 56 years and were travelling from Instagram followers as at 30 June 2019. Operationally, description of wildflowers species and a map showcasing Holiday Parks developing this parcel of land into an interstate. From our survey questions, those 472 vehicles visitors to the park are now able to book tickets via where they can be seen around the Bunbury Geographe extension of their existing tourist accommodation village; also provided an economic benefit to the City’s businesses an online system called Rezdy, the world’s leading region. This has been promoted across state and national the existing park lease being renewed for a further 50 that were frequented. On average, each vehicle spent $259 independent booking software and distribution platform. print material focused on Grey Nomads. Other marketing years; and a 50-year lease being entered into between the totalling $122,026 in the first six months. More work is to be done in this area with guided tours activity included BRAG featuring in Australia’s South West’s City and Discovery Holiday Parks for a portion of Sykes Community feedback has been generally positive and the becoming commonplace during 2019/20. There is an ever Six Seasons indigenous culture-focused campaign, the foreshore so that a splash park can be built for and used by City looks forward to continuing the trial. increasing visitation particularly from international visitors. Western Australian Indigenous Tourism Operators Council’s the community. More than 2,500 individuals from schools and community (WAITOC) WA map and Rex in-flight magazine’s regional International Relations groups visited the park. The splash park precinct will be open to the community art galleries feature. All three attractions featured in both and feature a 750sqm splash pad with 40 water features The inaugural South West Festival of Japan was held in The Wildside Café improved its branding via inclusion editions of the Bunbury Geographe FOUND magazine to cater for all ages and plenty of shade. The City will be 2018, and attracted more than 900 people to celebrate in the Bunbury Wildlife Park logo and improved signage. and Australia’s South West’s (ASW) Holiday Planner and developing the adjoining car park, playground, ablutions Bunbury and Setagaya’s 25th anniversary and all things An external review by Total Hospitality Services regional map, with ASW promoting Bunbury at the Japan and change facilities so the community can enjoy the Japanese. The Cube at BREC was home to performances highlighted functionality changes which were trialled Walkabout trade show. by Taiko On, traditional Japanese dance, Kyodu, Kendo, precinct as a whole. Works are due to start in 2019. and modified to enhance the customer experience, for Bunbury Visitor Centre and local groups including Treendale Taiko. Local example weekend breakfasts and change of traffic flow in Trial of Overnight Rest Areas businesses had stalls in the market area as well as other the café. Café staff received ongoing training and support The Bunbury Visitor Centre handled more than 84,000 In November 2018, the City’s two-year trial of free, stallholders from around the South West and Perth. It was leading to increased sales and customer satisfaction. visitor contacts across the year and directed those visitors overnight rest areas for fully self-contained recreational a fantastic celebration of cultures and a much applauded Catering proved to be successful though must be balanced to more than 124 members offering accommodation, vehicles began. The trial requires visitors to obtain a community event. with the size of the kitchen. hospitality and experience options in the region. Grant funding from Tourism WA’s Regional Visitor Centre During 2018/19, the City also hosted visits by The Bunbury Wildlife Park Senior Wildlife Park Keeper Sustainability Grant Program allowed for the purchase and representatives from Jiaxing City to celebrate 18 years trained up to 45 volunteers, with 31 staying and assisting updates to the following items: of friendship, as well as the Chairman of the People’s the keepers for varying lengths of time throughout the Committee of the City of Nha Trang. year and in addition to this also hosted 12 work experience • Installation of a new interactive touchscreen TV, uploaded students in 2018/19. with information on Bunbury’s tourist attractions, maps Bunbury Wildlife Park and QR codes Tourism The Bunbury Wildlife Park went from strength to strength • Virtual Reality goggles for visitor use on many fronts in 2018/19 with about 39,000 visiting over The City of Bunbury attended the Australian Tourism • New signage both inside and outside of the Visitor Centre the year. Exchange for the first time this year, with the Bunbury to reflect the Bunbury Geographe branding At the culmination of a three-year induction process, Wildlife Park (and Bunbury in general) showcased to more • Purchase of modern stock display stands the park gained Regional Member Zoo and Aquarium than 90 domestic and international tour operators and Association (ZAA) accreditation. ZAA is the peak wholesalers across four days in Perth in April. This was The City again supported the Cruise Bunbury Committee, professional body representing the collective voice of the first time Bunbury and its native Australian animal and saw three cruise ships docked in Bunbury during the zoos, aquariums, sanctuaries and wildlife parks across attraction has been formally promoted on the domestic 2018/19 summer season bringing about 2,350 passengers, Australasia and is a valued network for improving wildlife and international stage, and started relationships that will who enjoyed a number of tours offered within the conservation, scientific study and education. The Bunbury continue to grow for years to come. Bunbury Geographe region. The Maasdam, docking on 5 Wildlife Park is now able to co-operate with other Another first time appearance, the City also attended the January 2019 with 1,200 passengers was the largest of the members to plan and manage the populations of wildlife WA Marketplace section of the Perth Royal Show, joining three ships.

22 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 23 Our places and spaces : Theme 3

THEME 3 Our Places Environmental Education The Sustainability and Environmental Planning team and Spaces primary environmental education initiative during the 2018/19 was the ongoing coordination of the Habitat Bunbury Program. More than $23,000 in grant funding was allocated to three school projects in the 2018/2019 Goal: Our objectives: financial year under the program, including: A natural and built 3.1 A city that is easy to get around • Cooinda Primary School’s Kids Teaching Kids environment that reflects with attractive streetscapes and Conference 2018 Bunbury’s Core values. pathways. • Newton Moore Senior High School’s Monitoring and 3.2 An irresistible city centre, with Maintaining Local Ecosystems Using Technology project thriving businesses and a vibrant • Manea Senior College’s Monitoring Blue Swimmer Crabs inner-city residential community. in the Bunbury Region project 3.3 High-quality urban design, Provision of Support to Community well-planned neighbourhoods with Natural Area Planning and Management Environmental Groups housing choice, and appropriate This past financial year, the City of Bunbury has continued The Sustainability and Environmental Planning team provision for diverse land uses to to provide support towards the establishment of the continued to provide equipment, supplies and general meet the community’s needs. proposed Preston River to Ocean and Leschenault advice to a range of local community environmental 3.4 Minimised risk of flooding through Regional Parks through the following activities: groups in the 2018/19 financial year. Additionally, activities effective management that has regard • ongoing management of local government landholdings delivered by local community environmental groups in to the impacts of climate change. proposed for inclusion in the parks partnership with the City of Bunbury this year included: 3.5 Efficient use of resources, particularly • provision of general advice and support to the • the Friends of Big Swamp, Bunbury Regional Prison and water and energy, with minimum Department of Biodiversity, Conservation and Attractions City undertook a perimeter improvement project around waste and efficient disposal. (DBCA) regarding the land currently owned and/or the foreshores of Big Swamp in order to remove Kikuyu 3.6 The public health and amenity of managed by the Local Government grass thatch and plant native seedlings the community is protected. • participation in DBCA’s community and technical working • the Friends of Manea Park applied a fungicide to bolster 3.7 Management of significant natural groups in supporting the preparation of a management native plant immunity to Phytophthora Dieback at Manea areas which provides for human plan for the parks Park via the direct injection of 276 trees and foliar spraying enjoyment while protecting habitat • prepared a memorandum of understanding with DBCA of understorey species over an area of 4.98 hectares and environmental values for in order to enable the department to begin some • the Friends of Manea Park, Friends of Hartley Anderson generations to come. management activities on Local Government land in the Reserve, Friends of Big Swamp and Stewards of Katherine interim period preceding the formalisation of the new Chauhan Reserve, in partnership with the City, removed regional parks extensive areas of exotic pampass grass and planted 1,300 The Sustainability and Environmental Planning team native seedlings across a combined area of one hectare continued to lead the City of Bunbury’s natural area • the South West Catchments Council and City began management activities in 2018/19 financial year through a partnership project that seeks to support the the coordination of works in priority conservation areas, conservation of the threatened Western Ringtail Possum. provision of support to local community environmental The project will take place over several years and will groups and management of the City’s statutory offset involve possum monitoring, weed control, revegetation management sites. and community engagement activities

City of Bunbury : Annual Report 2018 - 2019 25 Theme 3 : Our places and spaces Our places and spaces : Theme 3

• fortnightly site visits to inspect fence, sign and gate amendment) following a request that seeks to establish a same reporting period. This is a marginal decrease on the condition new local centre within the curtilage of the Homemaker 318 development approvals determined in the previous • repair of two damaged gates Centre, which will be publicly advertised during the financial year. The total value of new development works course of 2019 determined by the local government for the 2018/19 • two rounds of pest animal monitoring reporting period was $36,944,258. • two rounds of fox control utilising soft jaw traps and 1080 Local Planning Policy Review The following is a summary of development approvals and baits During 2018/19 the Strategic Planning and Urban Design building permits for major development projects that were • completion of a Phytophthora Dieback survey team continued reviewing and updating the existing suite approved over the last financial year: • control of priority weeds onsite including pampass grass of local planning policies. The City of Bunbury’s local • Bunbury Forum shopping centre redevelopment and arum lily planning polices require review on a regular basis in order ($78,980,000) to keep them up to date and relevant. The local planning • rubbish removal policy review process is being undertaken in accordance • Aspire apartments mixed use high rise in Holman Street • compliance reporting to the State and Federal with a quality assured approach (including a Relevancy, ($14,728,500) governments Efficacy and Veracity Test) that is documented in the Local • 44 grouped dwelling subdivision in Spencer Street • the South West Institute of Technology, in partnership Urban Pest Management Planning Policy Review Manual. ($6,050,000) with the City, undertook the brushing of 700 square metres Local planning policies prepared, adopted and The City of Bunbury’s introduced Corella management • Major storage and distribution shed for Qube in Willinge of degraded dunes at Back Beach, installed 250 metres of implemented included the following: program continued this year in response to the ongoing Drive ($2,981,000) fencing at Hartley Anderson Reserve and the removal of • Local Planning Policy: Non Residential adjoining introduced wattles across 1.4 hectares of local bushland nuisance caused by the pest. Key achievements during this • Commonwealth Bank fitout and signage in Stephen Street past financial year have included ongoing implementation Residential Development ($2,160,000) Significantly, local environmental volunteers collectively of the City’s Introduced Corella Management Strategy; contributed more than 920 hours of volunteer labour • Local Planning Policies: Sea Containers and Transportable • Alterations and additions to Stirling Street Arts Centre continued participation in WALGA’s Coordinated Corella towards the management of City of Bunbury bushland or Relocatable Storage Containers and Structures ($2,020,700) Control Group, which supports local governments to reserves over the reporting period. • Local Planning Policy: Spencer Street Activity Corridor share knowledge on management of the pest; and the Design Guidelines Management of Environmental Offset Sites City’s contractor was successful in culling 688 introduced corellas this financial year, as supported by an increase This year, the Sustainability and Environmental Planning Local Area and Precinct Planning in management options brought about through a recent team completed the sixth year of statutory management The City of Bunbury, in partnership with LandCorp change in legislation. works at the Somerville Drive extension project and in association with the South West Development environmental offset site. Key tasks undertaken during the Local Planning Strategy and Scheme Commission (SWDC), advanced the final draft Racecourses past financial year included the following: Local Area Plan, which comprises the Bunbury Turf Club, Since the endorsement of the inaugural City of Bunbury • the infill planting of 2,563 native seedlings along a closed Bunbury Trotting Club, residential Stables Precinct area and Local Planning Strategy and the subsequent gazettal of access track occupying a total area of one hectare in order the old Council depot site on Nuytsia Avenue. the City of Bunbury Local Planning Scheme No. 8 (LPS8) to restrict illegal four wheel drive access in March 2018, the City has been engaged in a process of Work on the local area plan continues, with the • the installation of rows of bollards at seven locations on-going monitoring and review. During the 2018-2019 department’s Strategic Planning and Urban Design team along the closed access track to assist in restricting illegal reporting period it has led to the preparation of: progressing the project to the point where the draft four wheel drive access and in turn support seedling Racecourses Local Area Plan and supporting planning • Omnibus Amendment No. 1 (basic amendment) – establishment instruments can now be advertised for public comment gazetted on 13 August 2019 • compliance reporting to the state and commonwealth during the latter part of 2019. governments • Omnibus Amendment No. 2 (standard amendment) – adopted by Council for the purpose of public advertising Development Approvals The team also implemented the fourth year of statutory on 6 August 2019 management works at the Bunbury Airport expansion The Development Assessment and Compliance team project environmental offset site. Key activities carried • Local Planning Strategy Amendment No. 1 and associated assessed 291 applications for development approval during out during the past financial year included the following: Local Planning Scheme Amendment No. 3 (complex 2018/19, including nine signage applications during the

26 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 27 Theme 3 : Our places and spaces Our places and spaces : Theme 3

Development Application Type 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 Building Approvals Development Approvals Determined By City of Bunbury The City issued 760 building permits (BA4), with a total Asset Facts Single Houses 37 43 46 71 61 value of $68,997,171 during the 2018/19 financial year, The City of Bunbury owns and maintains: Grouped Dwellings 102 73 66 64 38 representing an increase of $6,344,922 on 2017/18 figures of Multiple Dwellings 4 2 6 4 5 $62,652,249 for 725 approvals. Building permit applications were processed in an average of about eight to nine days Ancillary Dwellings 8 8 4 2 3 during 2018/19, far less than the statutory timeframe for 62 218 Home Occupation / Home Business 12 23 21 19 18 PIECES OF PUBLIC ART KM OF FOOTPATH approval of 25 days. Commercial / Industrial 162 177 123 121 147 Signage 33 29 31 25 9 Path and Cycle Infrastructure

Compliance 24 12 13 12 10 255 326 A further 2,550m of footpath and 2,390m of on-road and KM OF STORMWATER PIPE KM OF ROADS Sub-total of development value $42,000,000 $93,388,150 $55,013,228 $63,195,270 $36,944,258 off-road cycle path was added to the City’s network in the Development Approvals Determined By Southern Joint Development Assessment Panel (SJDAP) following areas: Number 0 2 0 1 1 • Petherick Street from Bruce Street to Picton Road, 430m 102 14,000+ BUILDINGS STREET TREES Development Value - $78,000,000 - $11,000,000 $78,980,000 • Kelly Park, carpark to playground, 60m Development Approvals Determined By Western Australian Planning Commission (WAPC) • Sandridge Road from Pennant Road to Picton Road, 330m Number 1 3 3 2 0 • Skewes Street from Walker Street to Caporn Street, 200m Development Value $5,500,000 $1,430,000 $100,000 $243,000 - 46 246 • Jubilee Road from Ince Road to the Farmers market, 360m PLAYGROUNDS PIECES OF PLAY EQUIPMENT • College ROW from Bellemore Park to Minninup Road, There was a slight decrease in the number of single and the need for Council to determine such applications 360m house, grouped dwellings and signage development in instances where there were objections made to the 40 39 applications approved during the 2018/19 reporting proposal. • Birch Street from Birch Street to Ocean Drive, 80m PICNIC SETTINGS BARBEQUES period, as compared to the previous financial year. There Process improvements have continued to be a focus • Higgins Street from Forrest Avenue to Blair Street, 320m was conversely a moderate reduction in the number If the City of Bunbury had to replace all of its for the City of Bunbury in the 2018/19 financial year, • Ecclestone Street from Clarke Street to of all other types of development during the same assets is would cost more than $700 million. strengthening the focus on electronic communication Queensbury Street, 88m reporting period and a significant decrease in cost of methods with applicants to provide feedback and receive works compared to previous financial years (refer to table • Jeffery Road from Riverlea Estate to Vittoria Road, 320m further information faster. The City is also focusing on Giorgi Road and Sutherland Way and the roundabout at above). The number of commercial industry development • Stage 1 of the Washington Avenue road widening works upgrading its application management systems in a drive the intersection of Vitoria Street and Stephen Street applications however showed a substantial increase for the to facilitate the construction of on-road cycle lanes, to become on-line and paperless, with the dividend of • Upgrade of Columba Street between Spencer Street and past financial year period. $200,000 electronic methods having greater accuracy of assessment Telford Street, $380,000 Processing times of development applications have varied • Stage 3 of the Ocean Drive road widening works to while reducing the turnaround on receiving required • Upgrade of Ocean Drive from Hastie Street to Mangle between 13 to 19 business days, with the average being facilitate the construction of on-road cycle lanes, $760,000 referral information faster. Street, $760,000 around 15 business days (adjusted). This is a decrease on • Stage 1 of the Estuary Drive road widening works to Development Compliance • Upgrade to Hayward Street from Jarvis Street to Ocean the previous financial years processing timeframe averaging facilitate the construction of separated bidirectional cycle Drive, $248,000 of approximately 20 business days (adjusted). The City of Bunbury has been engaged in a number of lane, $193,000 Typically over half of all application types could not be matters dealing with non-compliance with local laws and • Upgrade of Parade Road from Guile Fairway to Hudson Road Reseals and Upgrades immediately processed due to missing information, plan planning legislation governing unlawful development, non- Road, $180,000 revisions and external referrals to agencies for advice compliance with conditions of development, and the storage Works were completed in the following areas: • Upgrade of Picton Road from the train station to Forrest of inappropriate materials. As of 30 June 2019, there were and comment. This is similar to previous financial years, • Reseals at Koombana Drive , Adam Road, Alexander Street, Avenue, $300,000 74 cases active in the City’s compliance register, a number of some of which is unavoidable due to the requirement for Moss Street, portion of Timperley Street, intersection • Upgrade of Estuary Drive from Willinge Drive to the public advertising of many applications seeking variations which have since been resolved through negotiation. of Dodson Road and Beddingfield Street, intersection of railway crossing, $140,000

28 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 29 Theme 3 : Our places and spaces Our places and spaces : Theme 3

Drainage Upgrade and Replacements • Installation of hand railing to the jetty south of the Stirling Waste Education Mobile Waste App Street boat ramp $10,000 The stormwater improvements are part of an ongoing The City of Bunbury Waste Education team has been busy The launch of the City of Bunbury’s very own My 3 Bins • Emergency works to the Marlston waterfront seawall and program that improves access to stormwater infrastructure introducing tools and information to assist our residents Waste app was a State first with the ability to send out jetty $500,000 and confidence that the drainage is capable of operating and youth with our three bin system. This year saw the birth real time notifications to our residents. The app allows our to its design parameters. Waste Management of our very own bin mascots, Freddy FOGO, Reggie Recycle residents to access: • Drainage analysis of the Creek Street drainage catchment and Lenny Landfill. These were a huge hit with the kids and • A personalised bin collection calendar for residents It’s been a busy year for the Waste Services team with the a welcomed addition to our school and event visits. showing bin days, green and hard waste, special events $22,000 introduction of new services to our community along and public holiday changes • Upgrade of the stormwater network at Brockman Park to with all the changes to our waste and recycling streams it Recycle Drop off points facilitate additional storage and treatment stormwater has been a bit confusing at times. But our residents have • An A-Z list of materials and images showing which bin to New drop off points at our libraries, South West Sports during low flow $325,000 worked hard and are still above the State target which is a put materials in Centre and administration building were set up in May this credit to them all. • Hints and tips to help with waste management • Stage 2 of the upgrade of the stormwater network, Perkins year. The initiative behind this was to allow residents to Avenue, East Bunbury, $220,000 Next year looks just as exciting with the introduction drop off those little items in convenient everyday places • Map of waste drop off locations and Responsible Café’s • The grand canal basin was filled and evegetatedr to of the Container Deposit Scheme (CDS), and the City is that still may their way into landfill. • Report a problem form allowing residents to report improve the amenity of the area and reduce issues with working hard to ensure a smooth introduction with the problems with bins (missed, broke or contaminated bins) Totals so far and very impressive for such a short period of odour $80,000 McCombe Road recycling drop off centre being upgraded and send feedback direct to Council to take on the containers as well as other services not time are: • Upgrade of the stormwater network fronting the soccer • Push notifications letting esidentsr know changes to there already. 141kg household batteries club was undertaken to facilitate improved access to the collection dates, events and programs The CDS was showcased at the Bunbury Show with 50kg terra-cycle and bottle lids adjacent ovals $300,000 This has seen a reduction in the need to print the yearly whopping 6,895 cash for cans containers collected, with 26kg mobile phones calendar which is a cost saving for our residents as well as Marine upgrades the community receiving the benefit of the 10 cent return. 7kg medical sharps environmental savings. This shows how enthusiastic our community will be when Works were completed in the following areas: it comes in permanently. The CDS will be implemented • Refurbish piles and decking support structure to the jetty into to Western Australia on 2 June 2020. opposite Symmons Street $60,000 • Stage 2 replacement and reconstruction of a new inlet Kerbside Waste Generation wall, Frank Buswell Foreshore adjacent to Stirling Street Our kerbside weekly waste generated per household is between the boat ramp and King Road $938,000 still trending down. The State average is 22kg with City of Bunbury residents being well below at 16kg per household. Kerbside Domestic Recovery City of Bunbury residents are well above the State target for recovery through their passion to recycle and divert as much from landfill as possible. The State target for this year is 50 percent with Bunbury increasing from 61 to 63 percent. Household hazardous waste and e-waste Our household hazardous waste which covers electrical, oil, paint and chemicals hit an all-time high this year with a total of 2,787 tonnes diverted from landfill. This could never be achieved without the commitment of our residents and it’s great to see that this service is increasing as we evolve from the waste to landfill behaviours of past.

30 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 31 Theme 3 : Our places and spaces Our places and spaces : Theme 3

Parking The City has coordinated the implementation of a jointly- funded mosquito awareness communications strategy As part of the ongoing process of monitoring parking rates within the CBD, Parking Officers have continued to undertake throughout the region together with the City of Busselton average occupancy surveys. The comparison of the average vacancy within the CBD is indicated in the table below. and Shires of Harvey, Capel and Dardanup. Communications activities in 2018/19 included television advertising, website 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 and social media placement, and event displays and August average vacancy 36.71% 37.05% 33.37% 33.60% 33.41% 33.49% 42.14% 38.19% merchandise distribution to deliver key messages to target February average vacancy 33.14% 32.65% 32.46% 32.35% 31.93% 33.22% 36.67% 37.17% groups across the South West. The branding and messaging of the Fight the Bite initiative, in collaboration with the New Parking and Parking Facilities Local Laws were gazetted in the City. Parking officers monitored parking areas within the Department of Health (DoH), has been incorporated CBD (both on-street and in car parks) as well as monitoring parking in other areas i.e. schools, shopping centres and areas throughout the communications materials. The ongoing outside the CBD where parking restrictions apply. success of this regional communications strategy has been recognised and reinforced by the continued funding A summary of parking statistics is provided below. support provided by DoH for the program. 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 The Leschenault region experienced a below average Parking public complaints received 436 760 450 406 388 291 year in 2018/19 with regard to adult mosquito numbers Meat Inspection Parking cautions issued 6111 8092 5123 7794 9014 2299 and the number of cases of mosquito-borne disease. There were three cases of Ross River Virus notified in Parking infringement issued 9017 10176 8442 7836 4167 2506 The City provides a meat inspection service to a local Bunbury over this period, with four aerial treatments and abattoir. Ante-mortem and post-mortem inspections were Local Law cautions issued 324 42 28 50 176 43 160 ground treatments conducted at known breeding areas conducted of the following numbers of animals during Local Law infringements issued 278 129 111 131 176 107 in the City. 2019/19: Public Health Compliance Beef 20,997 Local Law Infringements issued Bushfire Management Numerous complaint investigations were undertaken by Lambs 83,244 Parking and Traffic Related 88 Prior to the bushfire season, all properties reaching the Environmental Health staff and included the investigation of Sheep 49,559 Fire Related 8 risk threshold to be considered as bushfire prone were 54 noise complaints, 13 asbestos complaints and 30 pollution Pigs 52,353 again re-assessed for their bushfire-risk level. This year saw Litter Related 5 complaints as well as a number of complaints regarding Goats 746 a greater compliance from property owners by working Shopping Trolleys 5 issues such as the keeping of animals, rodents, dwellings and Deer 387 with Ranger staff to address unsightly property complaints Straying Stock 0 health premises such as caravan parks and beauty therapists. before fire season ultimately reducing their bushfire risk. In some circumstances, investigations required staff to Safe Food TOTAL 106 The City has undertaken fire track maintenance works in undertake further sampling, collect evidence, monitor noise During the year, City staff completed 588 on-site Reissued 1 the Maidens Reserve, Manea Park, Irwin Street Reserve and levels or issue infringement notices. assessments of registered food businesses and issued 106 Voided 31 Hartley Anderson Reserve. The additional work undertaken On behalf of AQWEST, 566 water samples were taken written instructions, 20 formal letters, seven improvement at Edith Cowan University has significantly reduced the net throughout the Bunbury area in 2018/19 to ensure the notices and three infringements to food businesses. risk to community which has been evidenced in the City’s All Infringements and Warnings Issued drinking water supply complies with microbiological In addition, staff investigated 23 food complaints and risk register. Animal Infringement 207 requirements. As part of the DoH bacterial monitoring assessed 24 fit-out plans for compliance. program, 87 water samples were taken from popular Animal Warning 357 Mosquito Management recreational/swimming beaches. To ensure compliance Forty-five food recalls were completed by staff during By-Laws Infringement 107 The City continues to work closely with neighbouring with the Health (Aquatic Facilities) Regulations, 302 water 2018/19. Food recalls can be initiated for a number of By-Laws Warning 43 local governments to provide a comprehensive mosquito samples were collected from public swimming pools reasons including the presence of foreign objects, incorrect labelling, unsatisfactory levels of harmful bacteria or Parking Infringement 2506 management program for the Leschenault region. City and spas. Other inspections undertaken included 119 of Bunbury and the Shires of Harvey and Dardanup inspections of tattooists, beauty salons and hairdressing that the food contains inappropriate levels of certain Parking Warning 2299 collectively form the Leschenault CLAG (Contiguous Local establishments, 24 inspections of accommodation facilities chemicals, or ingredients not permitted by the Australian TOTAL 5519 Authority Group). and 140 inspections of public buildings. Food Standards Code.

32 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 33 Our City : Theme 4

THEME 4 Contracts and Procurement Bunbury Wildlife Park and the Withers Community Library. This high speed connection will allow for the introduction Our City The City has introduced procurement software to conduct of a variety of new digital services from these sites. the end to end procurement function for operational efficiency. Vendor Panel also increases the opportunities Record Keeping provided to local business in responding to quotations and The City’s new record-keeping management plan, coupled Goal: Our objectives: increase local business expenditure by the City. with an upgrade of the City’s record keeping system, is Procurement continues to be a focus area with an emphasis driving the move to a total digital records keeping system which will improve record keeping and maximise internal Civic leadership, partnerships 4.1 A passionate advocate for on providing value for money and delivery quality goods operational efficiencies. and sound governance in the community, with strong and services to the community. The past 12 months has seen delivering with and for the partnerships to amplify the an increased engagement with local business to provide Customer Service outcomes that can be achieved greater opportunities to do business with the City. Review of the City’s Customer Service Charter has been community. 4.2 A highly-engaged and involved Information Communication and Technology completed. The City’s Customer Service Charter and community, working together Customer Complaint Handling Guidelines establishes the on strategy development and The City of Bunbury is changing its technological City’s customer service standards, identifies a whole-of- implementation environment into a highly reliable, secure and agile IT organisation commitment to customer service and defines 4.3 Trusted leadership and robust backbone that will drive business improvements. a common set of expected principles and behaviours decision-making The City of Bunbury is also looking to embrace emerging relating to the delivery of service to our customers. The 4.4 A skilled organisation, which online technologies. We know these technologies can guidelines also define what our customers can do if the City has not delivered a level of customer service that exercises responsible asset help shape citizen-centric service delivery, enhance how meets these guidelines. stewardship, sound financial we engage with the community, and maximise operational management, and exemplary efficiencies within our organisation. Currently the City’s administration office per month receives around 2,400 phone calls, and assists 1,600 customer service The City has conducted a community consultation program customers over the counter and concierge service, this that will inform the development of the City’s digital and includes general enquires, visitor registrations, organic bag online strategy, and the functions of the City’s new website. distribution and courier deliveries. Over the past 12 months the City has also made significant Our Happy/Not Happy Terminals that are located in the changes to its wide area network, which includes a high foyer of the Administration building, indicate that 96 speed connection to the South West Sport Centre, the percent of our customer were very happy with our service.

City of Bunbury : Annual Report 2018 - 2019 35 Theme 4 : Our City Our City : Theme 4

Community Perception Survey Results (% satisfaction) Built Environment 2017 2019 Trend The area’s character and identity 51% 55% Overall Performance Planning and building approvals 43% 47% The City of Bunbury as a place to live 77% 78% Streetscapes 52% 56% City of Bunbury as the organisation that governs the local area 55% 55% Lighting of streets and public places 55% 58% Value for money from Council rates 47% 47% Building and maintaining local roads 56% 60% Leadership and communication Traffic management on local roads 57% 62% Council’s leadership within the community 52% 50% Footpaths and cycleways 52% 56% The City has developed and communicated a clear vision for the area 46% 40% Access to public transport 48% 49% Advocacy and lobbying on behalf of the community to influence decisions, support local causes, etc 50% 48% Quality of bus stops and shelters 47% 49% How the community is consulted about local issues 47% 47% Natural Environment Elected Members (the Councillors) have a good understanding of community needs 37% 28% Conservation and environmental management 54% 58% Staff have a good understanding of community needs 39% 39% City’s use of water resources 52% 55% How the community is informed about what’s happening in the local area (including local issues, events, services and facilities) 51% 54% Tree management (i.e. protection, planting and maintenance) 54% 59% The City clearly explains reasons for decisions and how residents’ views have been taken into account 37% 25% Weekly organic waste collection (lime green bin) 75% 80% Customer service 62% 65% Fortnightly rubbish collections (red or dark green lid) 64% 74% Economic Development Fortnightly recycling collections (yellow lid) 71% 75% Economic Development (efforts to attract investors, attract and retain businesses, grow tourism and create job opportunities) 44% 42% Verge-side bulk rubbish collections 76% 79% How Bunbury City Centre is being developed 46% 41% Management of public litter 57% 64% Access to education, training and personal development opportunities 53% 58% Natural disaster management (education, prevention and relief for fires, flooding etc) 56% 62% Community Development Services and facilities for youth 52% 52% Freedom of Information Complaint Handling Services and care available for seniors 56% 56% The City of Bunbury will if possible provide access to On 13 February 2018 a complaint was lodged concerning Access to services and facilities for people with disabilities 56% 53% documents held by the City outside the Freedom of an alleged breach of the Local Government (Rules of Community buildings, halls and toilets 54% 58% Information Act 1992 process, however if we are unable to Conduct) Regulations 2007 (the Conduct Rules) by supply this information by less formal means, a Freedom of Councillor Kelly. By Order published 21 October 2018, Sport and recreation facilities 66% 71% Information request can be made. the Local Government Standards Panel made a finding South West Sports Centre (SWSC) 73% 74% In accordance with the Freedom of Information Act 1992 that Councillor Kelly committed a breach of regulation Playgrounds, parks and reserves 60% 67% the City publishes a Freedom of Information Statement 7 (1) (b) of the Local Government Rules of Conduct Airport facilities and services 36% 39% on the City’s website. The statement outlines the City’s Regulations 2007 by publishing comments on Facebook with the intention of damaging his fellow Councillors Safety and security 48% 52% functions, the kind of documents held by the City, how those documents can be accessed and details the who had voted in favour of a recommendation to include Graffiti removal services 62% 65% process of applying for information under the Freedom of a Bunbury Geographe Chamber of Commerce and Art and Culture Information Act 1992. Industry representative on the Council’s Policy Review and Library and information services 75% 76% Development Committee. A total of six Freedom of Information applications Festivals, events, art and cultural activities 60% 70% were received in the 2018-2019 financial year, and were The Standards Panel made orders that Councillor Kelly How local history and heritage is preserved and promoted 56% 61% processed at an average of 23 days per application. publically apologise to his fellow Councillors at the City’s

36 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 37 Theme 4 : Our City Our City : Theme 4

Councillor Steck failed to adhere to the Standards Panel’s Financial Planning Rating orders. As required under the Local Government Act 1995, The City’s capital and operating works program as outlined Raising rates is a primary source of revenue for the City to the Chief Executive Officer reported the failure to adhere in the 2018/19 Budget was implemented during the year. meet its budgetary requirements. The rate levy is based on to the Standards Panel’s orders on 14 February 2019. A 15-year Integrated Financial Plan (IFP), which includes the individual Gross Rental Valuation (GRV) supplied by Occupational Safety and Health a long-term financial plan, corporate business plan, Landgate Valuation Services for each property and is deemed workforce plan and asset management plan, was also to be an independent valuation and fair for all ratepayers in During this period the City has focused on reviewing and adopted in 2018/19. This provides a plan to deliver the Bunbury. For 2018/19 the rate in the dollar was 9.351 cents in building a framework for an effective Safety Management vision, goal and objectives of the Strategic Community the dollar of GRV and the minimum rate was $1,164. System. This has entailed reviewing current safety Plan. It also demonstrates Council’s financial capacity to practices, processes, procedures and previous audit results. deliver services, provide facilities and manage assets that Rates and chanrges levied Identified areas of improvement are being documented first Ordinary Council Meeting Cr Kelly attended after the will sustain the Bunbury community into the future. General Rate $35,125,920 with an action plan to assist with future strategic safety expiration of 28 days from the date of service of the Order Minimum Rate $3,217,296 planning and tracking. Debt Management or if unable to do so, publish within the first 10 pages of Interim Rate $79,972 the South Western Times Newspaper a public apology in The City places a strong emphasis on maintaining the debt Employee Remuneration Specific area rates: accordance with the details within the Order. service cover ratio within an acceptable target range. A debt In accordance with the provisions of regulation 19B of service cover ratio of 5.0 or greater represents a low risk, and Pelican Point Grand Canals $46,446 Cr Kelly subsequently published a public apology on the Local Government (Administration) Regulations 1996, a ratio of 2.0 or lower represents a high risk. The City’s debt Other fees and charges: Page 8 of the South Western Times Newspaper edition set out below in bands of $10,000 are the number of service cover ratio was 2.2 after taking into account one-off circulated Thursday 15 November 2018, as specified in Rate instalment plan $352,157 employees who received an annual salary of $100,000 or adjustments at 30 June 2019 which is within Council’s the Panels ‘Sanction Decision and Reasons for Decision’ Late rate payment penalty $221,720 more in 2018/19. In the interest of full disclosure, package acceptable target range. Outstanding debt was $14.5 million documentation. salary is provided along with cash salary. at 30 June 2019 compared to $15.1 million at the end of 2018. On 13 February 2018 a complaint was lodged concerning Rate Exempt Properties During 2018/19 the City borrowed $1.64 million to part an alleged breach of the Local Government (Rules of 2017-2018 2018-2019 fund the redevelopment of the Stirling Street Arts Centre The Local Government Act 1995 allows properties owned by Conduct) Regulations 2007 by Councillor Steck. Salary Salary Salary Salary Only Package Only Package ($900,000); road construction ($500,000); and self- charitable or not-for-profit organisations to be exempt from By Order published 21 October 2018, the Local $100,000 - $109,999 6 6 7 12 supporting loans to the Bunbury and Districts Hockey paying rates. In the 2018/19 financial year, 343 properties in Government Standards Panel made a finding that Association ($150,000) and to the Bunbury Bowling and Social the City received rates exempt status. Rates foregone on Councillor Steck committed a breach of regulation 7 (1) (b) $110,000 - $119,999 3 5 1 3 Club ($90,000). $681,177 was paid in interest on outstanding all charitable properties in the City under the provisions of of the Local Government Rules of Conduct Regulations $120,000 - $129,999 2 7 3 5 debt in 2018/19 compared to $716,877 in 2017/18. section 6.26(2) of the Act are about $1.19 million. 2007 by criticising a Council decision in a letter to the $130,000 - $139,999 1 4 1 3 editor of the South Western Times local newspaper published 1 February 2018. The council decision was to $140,000 - $149,999 1 2 1 4 appoint a representative to the Bunbury Geographe $150,000 - $159,999 2 1 Chamber of Commerce and Industry and to the Council’s $160,000 - $169,999 1 1 1 1 Policy Review and Development Committee. $170,000 - $179,999 1 1 The Standards Panel made orders that Councillor Steck publically apologise to Mayor Gary Brennan and her fellow $180,000 - $189,999 1 1 Councillors at the City’s first Ordinary Council Meeting $210,000 - $219,999 2 1 Cr Steck attended after the expiration of 28 days from $220,000 - $229,999 1 the date of service of the Order or if unable to do so, publish within the first 10 pages of the South Western $240,000 - $249,999 1 Times Newspaper a public apology in accordance with the $250,000 - $259,999 1 details as specified in the Panels ‘Sanction Decision and $290,000 - $299,999 1 1 Reasons for Decision’ documentation.

38 City of Bunbury : Annual Report 2018 - 2019 City of Bunbury : Annual Report 2018 - 2019 39 Auditors Report & Financial Statements For the year ending 30 June 2019 CITY OF BUNBURY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

TABLE OF CONTENTS Members and Executives 3 Statement by Chief Executive Officer 4 Statement of Comprehensive Income by Nature and Type 5 Statement of Comprehensive Income by Program 6 Statement of Financial Position 8 Statement of Changes in Equity 9 Statement of Cash Flows 10 Rate Setting Statement 11 Notes to and forming part of the Financial Report 1. Basis of Preparation 13 2. Revenue and Expenses 14 (a) Revenue 14 (b) Grant Revenue 16 (c) Conditions over Grants/Contributions 20 (d) Expenses 23 (e) Loss on Asset Disposals 23 3. Cash and Cash Equivalents 24 4. Reserves ‐ Cash Backed 25 5. Trade and Other Receivables 30 6. Inventories 31 7. Other Assets and Assets Classified as Held for Sale 32 8. Investments 32 9. Other Financial Assets 33 (a) Current Assets 33 (b) Non‐current Assets 33 10. Property, Plant and Equipment 35 (a) Movements in Carrying Amounts 35 (b) Fair Value Measurements 36 11. Infrastructure 37 (a) Movements in Carrying Amounts 37 (b) Fair Value Measurements 38 12. Property, Plant and Equipment (including Infrastructure) 39 (a) Disposals of Assets 40 (b) Depreciation 40 13. Revaluation Surplus 42 14. Investment Properties 44 15. Trade and Other Payables 44 16. Information on Borrowings 45 (a) Borrowings 45 (b) Loan Principal and Interest Repayments 45 (c) New Borrowings 47 (d) Unspent Borrowings 47 (e) Overdraft 48 (f) Loan Guarantees provided by the City of Bunbury 48 17. Employee Related Provisions 49

Page 1 of 80 CITY OF BUNBURY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

TABLE OF CONTENTS Notes to and forming part of the Financial Report (continued) 18. Notes to the Statement of Cash Flows 51 (a) Reconciliation of Cash 51 (b) Reconciliation of Net Cash Provided by Operating Activities to Net Result 51 19. Total Assets Classified by Function and Activity 51 20. Contingent Liabilities 52 (a) Contaminated Sites 52 (b) Aluminium Composite Panels 52 21. Leasing and Capital Commitments 52 (a) Operating Lease Commitments 52 (b) Capital Expenditure Commitments 53 22. Joint Venture Arrangements 54 (a) Land Development Agreements 54 (b) Controlled Entity 55 23. Related Party Transactions 57 24. Major Land Transactions 58 25. Trading Undertakings and Major Trading Undertakings 58 26. Rating Information 59 (a) Rates 59 (b) Specified Area Rate 60 (c) Service Charges 60 (d) Discounts, Incentives, Concessions and Write Offs 60 (e) Interest Charges and Instalments 62 27. Rate Setting Statement Information 63 (a) Non‐cash Amounts Excluded from Operating Activities 63 (b) Surplus/(Deficit) After Imposition of General Rates 63 28. Employee Information 64 (a) Employees Remuneration 64 (b) Employee Numbers 64 29. Financial Risk Management 65 (a) Interest Rate Risk 65 (b) Credit Risk 67 (c) Liquidity Risk 69 30. Trust Funds 70 (a) Cash Funds Held in Trust 70 (b) Assets Held in Trust 70 31. Events Occurring After the End of the Reporting Period 70 32. Initial Application of Australian Accounting Standards 71 33. New Accounting Standards and Interpretations for Application in Future Years 72 (a) Revenue from Contracts with Customers 72 (b) Leases 72 (c) Income for Not‐for‐Profit Entities 73 (d) Impact of Changes to Retained Surplus 73 34. Other Significant Accounting Policies 74 35. Activities/Programs 76 36. Financial Ratios 77 37. Changes in Accounting Policy 77

Independent Audit Report 78

Page 2 of 80 CITY OF BUNBURY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

MEMBERS AND EXECUTIVES

MAYOR Gary Brennan

COUNCILLORS Cr Jaysen De San Miguel (Deputy Mayor) Cr Todd Brown Cr Murray Cook Cr James Hayward Cr Brendan Kelly Cr Betty McCleary Cr Sam Morris Cr Tresslyn Smith Cr Michelle Steck Cr Karen Steele Cr Monique Warnock

CHIEF EXECUTIVE OFFICER Malcolm Osborne

DIRECTOR CORPORATE AND COMMUNITY SERVICES Stephanie Addison‐Brown

DIRECTOR PLANNING AND DEVELOPMENT SERVICES Gary Barbour

DIRECTOR WORKS AND SERVICES Gavin Harris

Administration Offices 4 Stephen Street, Bunbury WA 6230 Telephone (08) 9792 7000, Facsimile (08) 9792 7184, TTY 133 677 www.bunbury.wa.gov.au

Page 3 of 80 CITY OF BUNBURY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

Local Government Act 1995 Local Government (Financial Management) Regulations 1996

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the City of Bunbury for the financial year ended 30 June 2019 is based on proper accounts and records to present fairly the financial position of the City of Bunbury at 30 June 2019 and the results of the operations for the financial year then ended in accordance with the Local Government Act 1995 and, to the extent that they are not inconsistent with the Act, the Australian Accounting Standards.

Signed on the 07 day of November 2019

MJ (Mal) Osborne Chief Executive Officer

Page 4 of 80 CITY OF BUNBURY STATEMENT OF COMPREHENSIVE INCOME BY NATURE AND TYPE FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ Revenue Rates 26(a) 38,349,549 38,349,163 37,226,931 Operating Grants and Subsidies 2(a,b) 2,656,227 1,874,116 2,671,269 Contributions, Reimbursements and Donations 2(a) 1,099,513 977,448 1,103,518 Fees and Charges 2(a) 12,835,486 12,729,570 13,422,073 Interest Earnings 2(a) 1,566,296 1,371,431 1,475,751 Other Revenue 377,423 339,756 344,109 56,884,492 55,641,484 56,243,651

Expenses Employee Costs (25,892,558) (26,940,882) (24,448,721) Consultants (1,090,719) (2,184,634) (1,170,365) Materials and Contracts (14,253,914) (16,285,983) (12,062,687) Utility Charges (2,630,749) (2,816,090) (2,624,127) Depreciation on Non‐Current Assets 12(b) (14,114,759) (14,013,112) (14,225,341) Insurance Expenses (589,906) (597,572) (539,282) Interest Expenses 2(d) (683,177) (629,128) (716,877) Other Expenditure (2,385,069) (3,058,807) (2,292,606) (61,640,851) (66,526,208) (58,080,007) (4,756,359) (10,884,724) (1,836,356)

Non‐Operating Grants, Subsidies and Contributions 2(a,b) 7,039,334 5,076,555 6,902,721 Interest on Capital Grants 2(a) 8,323 ‐ 82,493 Fair Value Adjustment to Financial Assets at Fair Value through Profit or Loss 9(b) 140,137 ‐ ‐ Impairment Loss on Plant and Vehicles 10(a) (99,924) ‐ ‐ Impairment Loss on Civil Infrastructure 11(a) ‐ ‐ (241,175) Profit on Asset Disposals 12(a) 813,923 1,324,507 5,809,523 Loss on Asset Disposals 2(e),12(a) (4,889,288) ‐ (4,314,823)

Net Result for the Period (1,743,854) (4,483,662) 6,402,382

Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Changes in Asset Revaluation Surplus 13 (6,356,719) ‐ (2,182,305)

Total Other Comprehensive Income for the Period (6,356,719) ‐ (2,182,305)

Total Comprehensive Income for the Period (8,100,573) (4,483,662) 4,220,076

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

Page 5 of 80 CITY OF BUNBURY STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ Revenue 2(a) General Purpose Funding 40,815,787 39,920,801 39,627,652 Governance 1,199,729 1,086,198 1,170,553 Law, Order and Public Safety 592,503 579,039 739,855 Health 505,897 417,532 453,612 Education and Welfare 17,662 6,250 2,148 Community Amenities 6,010,423 6,120,654 6,275,219 Recreation and Culture 4,915,398 4,887,455 5,175,882 Transport 889,407 967,320 719,813 Economic Services 283,474 296,725 298,310 Other Property and Services 1,654,212 1,359,510 1,780,606 56,884,492 55,641,484 56,243,651

Expenses 2(d,e) General Purpose Funding (684,867) (1,305,043) (870,578) Governance (4,576,073) (5,281,728) (4,639,580) Law, Order and Public Safety (1,755,746) (1,927,934) (1,942,700) Health (1,426,079) (1,545,343) (1,162,375) Education and Welfare (532,535) (575,640) (348,294) Community Amenities (9,954,328) (11,019,640) (8,236,398) Recreation and Culture (19,724,301) (21,354,966) (16,957,451) Transport (7,460,843) (8,388,150) (6,596,430) Economic Services (1,057,160) (1,273,316) (984,971) Other Property and Services (13,785,743) (13,225,320) (15,624,353) (60,957,675) (65,897,080) (57,363,130)

Finance Costs 2(d) Law, Order and Public Safety ‐ ‐ (44,523) Community Amenities (53,483) (52,007) (60,148) Recreation and Culture (237,725) (209,119) (278,578) Transport (128,051) (126,384) (158,294) Other Property and Services (263,918) (241,618) (175,334) (683,177) (629,128) (716,877)

Non‐Operating Grants, Subsidies and Contributions 2(a) Law, Order and Public Safety 597,000 ‐ 30,257 Education and Welfare 3,000 ‐ 34,121 Community Amenities 417,501 420,000 ‐ Recreation and Culture 3,054,128 2,405,000 888,495 Transport 2,976,028 1,637,555 2,782,341 Other Property and Services ‐ 614,000 3,250,000 7,047,657 5,076,555 6,985,214

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

Page 6 of 80 CITY OF BUNBURY STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ Profit on asset disposals 12(a) Law, Order and Public Safety ‐ ‐ 163,575 Community Amenities ‐ 66,781 ‐ Recreation and Culture 46 46 318 Other Property and Services 813,877 1,257,680 5,645,630 813,923 1,324,507 5,809,522

Loss on asset disposals 12(a) Community Amenities (816,226) ‐ (135,333) Transport (3,683,983) ‐ (4,179,490) Other Property and Services (389,079) ‐ ‐ (4,889,288) ‐ (4,314,823)

Fair Value Adjustment to Financial Assets at Fair Value through Profit or Loss 9 140,137 ‐ ‐ Impairment loss on Plant and Equipment 10(a) (99,924) ‐ ‐ Impairment loss on Civil Infrastructure 11(a) ‐ ‐ (241,175) 40,213 ‐ (241,175)

Net Result for the Period (1,743,854) (4,483,662) 6,402,382

Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Changes in Asset Revaluation Surplus 13 (6,356,719) ‐ (2,182,305)

Total Other Comprehensive Income for the Period (6,356,719) ‐ (2,182,305)

Total Comprehensive Income for the Period (8,100,573) (4,483,662) 4,220,077

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

Page 7 of 80 CITY OF BUNBURY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019

2019 2018 NOTE $$ CURRENT ASSETS Cash and Cash Equivalents ‐ Unrestricted 3 11,354,498 9,237,142 Cash and Cash Equivalents ‐ Restricted 3 26,405,796 27,077,985 Trade and Other Receivables 5 2,326,199 2,255,097 Inventories 6 95,804 61,991 Other Current Assets 7 746,755 594,524 Other Financial Assets 9(a) 44,345 17,532 TOTAL CURRENT ASSETS 40,973,397 39,244,271

NON‐CURRENT ASSETS Trade and Other Receivables 5 583,611 521,452 Non‐Current Assets Held for Sale 7 1,500,000 ‐ Other Financial Assets 9(b) 393,771 61,858 Property, Plant and Equipment 10(a) 256,710,356 259,641,592 Infrastructure 11(a) 292,646,492 302,326,892 TOTAL NON‐CURRENT ASSETS 551,834,230 562,551,795

TOTAL ASSETS 19 592,807,627 601,796,066

CURRENT LIABILITIES Trade and Other Payables 15 4,338,411 4,316,837 Borrowings 16(a) 2,196,043 2,210,963 Provisions 17 4,107,119 3,843,409 TOTAL CURRENT LIABILITIES 10,641,573 10,371,209

NON‐CURRENT LIABILITIES Other Payables 15 12,458 12,893 Borrowings 16(a) 12,333,717 12,893,639 Provisions 17 605,370 524,917 TOTAL NON‐CURRENT LIABILITIES 12,951,545 13,431,449

TOTAL LIABILITIES 23,593,118 23,802,658

NET ASSETS 569,214,509 577,993,407

EQUITY Retained Surplus 217,066,282 215,117,608 Reserves ‐ Cash Backed 4 21,316,193 25,687,046 Revaluation Surplus 13 330,832,034 337,188,753 TOTAL EQUITY 569,214,509 577,993,407

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

Page 8 of 80 CITY OF BUNBURY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019

RETAINED RESERVES REVALUATION TOTAL SURPLUS CASH BACKED SURPLUS EQUITY NOTE $$$$

Balance as at 1 July 2017 228,538,249 21,247,715 339,371,059 589,157,024

Change in Accounting Policy 37 (15,383,693) ‐ ‐ (15,383,693) Restated Balance as at 1 July 2017 213,154,556 21,247,715 339,371,059 573,773,330 Comprehensive Income Net Result for the Period 6,402,382 ‐ ‐ 6,402,382

Other Comprehensive Income 13 ‐ ‐ (2,182,305) (2,182,305) Total Comprehensive Income 6,402,382 ‐ (2,182,305) 4,220,076

Transfers from/(to) Reserves 4 (4,439,331) 4,439,331 ‐ ‐

Balance as at 30 June 2018 215,117,608 25,687,046 337,188,753 577,993,407

Comprehensive Income Net Result for the Period (1,743,854) ‐ ‐ (1,743,854)

Other Comprehensive Income 13 ‐ ‐ (6,356,719) (6,356,719) Total Comprehensive Income (1,743,854) ‐ (6,356,719) (8,100,573)

Transfers from/(to) Reserves 4 3,692,528 (3,692,528) ‐ ‐ Reclassification of Planning & Development Act S.152 funds to Trust 4 (678,325) ‐ (678,325)

Balance as at 30 June 2019 217,066,282 21,316,193 330,832,034 569,214,509

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

Page 9 of 80 CITY OF BUNBURY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ CASH FLOWS FROM OPERATING ACTIVITIES Receipts Rates 37,919,172 38,349,163 37,038,708 Operating Grants and Subsidies 2,624,535 1,874,116 2,936,454 Contributions, Reimbursements and Donations 1,099,513 977,448 1,103,518 Fees and Charges 13,284,123 12,729,570 13,588,301 Interest Earnings 1,566,296 1,371,431 1,475,751 Goods and Services Tax (GST) 219,449 ‐ ‐ Other Revenue 377,423 339,756 344,109 57,090,511 55,641,484 56,486,841 Payments Employee Costs (25,511,885) (26,379,067) (23,920,186) Consultants (1,090,719) (2,184,634) (1,113,491) Materials and Contracts (14,801,950) (16,285,983) (12,229,036) Utility Charges (2,630,749) (2,816,090) (2,624,127) Interest Expenses (688,317) (629,128) (722,736) Insurance Expenses (589,906) (597,572) (539,282) Goods and Services Tax (GST) ‐ ‐ (84,269) Other Expenditure (2,385,505) (3,058,807) (2,546,544) (47,699,031) (51,951,281) (43,779,670)

Net Cash Provided By (Used In) Operating Activities 18(b) 9,391,480 3,690,203 12,707,171

CASH FLOWS FROM INVESTING ACTIVITIES Payments for the Purchase of Property, Plant and Equipment (6,155,604) (12,067,385) (13,225,041) Payment for Construction of Infrastructure (9,051,638) (13,375,044) (20,702,868) Non‐Operating Grants, Subsidies and Contributions 7,039,334 5,076,555 6,902,721 Interest Earnings on Capital Grants 8,323 ‐ 82,493 Proceeds from Self‐Supporting Loans (218,589) 1,265,743 1,267,156 Proceeds from Sale of Fixed Assets 1,672,111 2,091,155 7,010,230 Net Cash Provided By (Used In) Investing Activities (6,706,062) (17,008,976) (18,665,310)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of Borrowings (2,214,842) (2,213,708) (3,291,124) Proceeds from New Borrowings 1,640,000 2,640,000 3,000,000 Reclassification of Planning & Development Act S.152 funds from Reserve to Trust (678,325) ‐ ‐ Repayments ‐ Deferred Debtors 12,917 ‐ 18,042 Net Cash Provided By (Used In) Financing Activities (1,240,250) 426,292 (273,082)

Net Increase (Decrease) In Cash Held 1,445,167 (12,892,481) (6,231,220) Cash at Beginning of Year 36,315,127 36,315,127 42,546,347

Cash and Cash Equivalents at the End of the Year 18(a) 37,760,294 23,422,646 36,315,127

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

Page 10 of 80 CITY OF BUNBURY RATE SETTING STATEMENT FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ OPERATING ACTIVITIES Net Current Assets at Start of Financial Year ‐ Surplus/(Deficit) 27(b) 3,988,508 3,988,508 3,332,322 3,988,508 3,988,508 3,332,322

Revenue from Operating Activities (Excluding Rates) Specified Area Rates 46,446 46,031 45,768 Operating Grants and Subsidies 2(a) 2,656,227 1,874,116 2,671,269 Contributions, Reimbursements and Donations 1,099,513 977,448 1,103,518 Fees and Charges 12,835,486 12,729,570 13,422,073 Interest Earnings 1,566,296 1,371,431 1,475,751 Other Revenue 377,423 339,756 344,109 Profit on Disposal of Assets 813,923 1,324,507 5,809,523 19,395,312 18,662,859 24,872,010

Expenses from Operating Activities Employee Costs (25,892,558) (26,940,882) (24,448,721) Consultants (1,090,719) (2,184,634) (1,170,365) Materials and Consultants (14,253,914) (16,285,983) (12,062,687) Utility Charges (2,630,749) (2,816,090) (2,624,127) Depreciation on Non‐Current Assets (14,114,759) (14,013,112) (14,225,341) Insurance Expenses (589,906) (597,572) (539,282) Interest Expenses (683,177) (629,128) (716,877) Other Expenses (2,385,069) (3,058,807) (2,292,606) Loss on Disposal of Assets (4,889,288) ‐ (4,314,823) (66,530,139) (66,526,208) (62,394,831)

Non‐Cash Amounts Excluded from Operating Activities 27(a) 17,967,983 12,511,298 12,819,166 Amount Attributable to Operating Activities (29,166,845) (35,352,051) (24,703,654)

INVESTING ACTIVITIES Non‐Operating Grants, Subsidies and Contributions 2(a) 7,039,334 5,076,555 6,902,721 Interest on Capital Grants 2(a) 8,323 ‐ 82,493 Proceeds from Disposal of Assets 12(a) 1,672,111 2,091,155 7,010,230 Proceeds from Self‐Supporting Loans 16(b) 21,411 21,367 1,267,156 Purchase Land 10(a) (1,612,033) (40,376) (3,254,480) Purchase Buildings 10(a) (1,722,025) (7,071,830) (7,671,821) Purchase Plant and Vehicles 10(a) (1,693,544) (4,274,946) (1,108,298) Purchase Equipment 10(a) (1,086,675) (538,743) (1,125,311) Purchase Furniture and Fittings 10(a) (25,759) (101,490) (46,561) Purchase Arts and Culture Assets 10(a) (15,567) (40,000) (18,571) Purchase Infrastructure Assets 11(a) (9,051,638) (13,375,044) (20,702,868) Amount Attributable to Investing Activities (6,466,062) (18,253,352) (18,665,310)

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

Page 11 of 80 CITY OF BUNBURY RATE SETTING STATEMENT FOR THE YEAR ENDED 30 JUNE 2019

2019 2019 2018 Actual Budget Actual NOTE $$$ FINANCING ACTIVITIES Repayment of Borrowings 16(b) (2,214,842) (2,213,708) (3,291,124) Proceeds from Borrowings 16(c) 1,640,000 2,640,000 3,000,000 Movement in Unspent Loans 16(d) (767,715) ‐ 57,441 Movement in Unspent Grants 2(c) (2,930,949) 1,139,445 11,516,999 Reallocation of Planning and Development Act S.152 funds from Reserve to Trust 4 (678,325) ‐ ‐ Transfers to Reserves (Restricted Assets) 4 (4,380,800) (9,059,267) (15,421,986) Transfers from Reserves (Restricted Assets) 4 8,751,652 19,215,300 10,982,655 Amount Attributable to Financing Activities (580,978) 11,721,770 6,843,986

Surplus/(Deficit) Before Imposition of General Rates (32,225,378) (37,895,125) (33,192,656) Total Amount Raised from General Rates 26(a) 38,303,103 38,303,132 37,181,164

Surplus/(Deficit) After Imposition of General Rates 27(b) 6,077,725 408,007 3,988,508

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

Page 12 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

1. BASIS OF PREPARATION The financial report comprises general purpose financial CRITICAL ACCOUNTING ESTIMATES statements which have been prepared in accordance with The preparation of a financial report in conformity with Australian Accounting Standards (as they apply to local Australian Accounting Standards requires management to governments and not‐for‐profit entities), and make judgements, estimates and assumptions that effect Interpretations of the Australian Accounting Standards the application of policies and reported amounts of assets Board, and the Local Government Act 1995 and and liabilities, income and expenses. accompanying regulations. The Local Government (Financial Management) The estimates and associated assumptions are based on Regulations 1996 take precedence over Australian historical experience and various other factors that are Accounting Standards. Regulation 16 prohibits a local believed to be reasonable under the circumstances; the government from recognising as assets Crown land that is results of which form the basis of making the judgements a public thoroughfare, such as land under roads, and land about carrying values of assets and liabilities that are not not owned by but under the control or management of readily apparent from other sources. Actual results may the local government, unless it is a golf course, differ from these estimates. showground, racecourse or recreational facility of State or regional significance. Consequently, some assets, including THE LOCAL GOVERNMENT REPORTING ENTITY land under roads acquired on or after 1 July 2008, have All funds through which the City controls resources to not been recognised in this financial report. This is not in carry on its functions have been included in the financial accordance with the requirements of AASB 1051 Land statements forming part of this financial report. Under Roads paragraph 15 and AASB 116 Property, Plant and Equipment paragraph 7. In the process of reporting on the local government as a Accounting policies which have been adopted in the single unit, all transactions and balances between those preparation of this financial report have been consistently funds (for example, loans and transfers between funds) applied unless stated otherwise. Except for cash flow and have been eliminated. rate setting information, the report has been prepared on the accrual basis and is based on historical costs, modified, All monies held in the Trust Fund are excluded from the where applicable, by the measurement at fair value of financial statements. A separate statement of those selected non‐current assets, financial assets and liabilities. monies appears at Note 30 to these financial statements.

Page 13 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUE AND EXPENSES

(a) Revenue

Grant Revenue Grants, subsidies, contributions and capital interest are included as operating revenues in the Statement of Comprehensive Income: 2019 2018 $$ By Nature or Type: Operating Grants, Subsidies and Contributions 2,656,227 2,671,269 Non‐Operating Grants, Subsidies, Contributions 7,039,334 6,902,721 Non‐Operating Grants ‐ Capital Interest 8,323 82,493 9,703,884 9,656,483

By Program: General Purpose Funding 640,342 663,710 Law, Order and Public Safety 712,527 141,354 Education and Welfare 12,000 ‐ Community Amenities 461,494 164,852 Recreation and Culture 2,537,196 560,766 Transport 2,914,650 3,877,401 Economic Services 68,700 79,111 Other Property and Services 2,356,975 4,169,289 9,703,884 9,656,483

SIGNIFICANT ACCOUNTING POLICIES Grants, donations and other contributions Grants, donations and other contributions (continued) Grants, donations and other contributions are recognised undischarged as at the reporting date, the nature of and as revenues when the local government obtains control amounts pertaining to those undischarged conditions are over the assets comprising the contributions. disclosed in Note 2(c).

Where contributions are recognised as revenues during That note also discloses the amount of contributions the reporting period were obtained on the condition that recognised as revenues in a previous reporting period which they be expended in a particular manner or used over a were obtained in respect of the local government's particular period, and those conditions were operations for the current reporting period.

Significant Revenue Operating Grant Income 809,671 827,877 Non‐Operating Grant Income ‐ 3,250,000 809,671 4,077,877 Operating Grant Income This significant revenue in 2018/19 relates to the Federal Assistance Grant Scheme payments received in advance for the 2019/20 Financial Year of $809,671. This significant revenue in 2017/18 relates to the Federal Assistance Grant Scheme payments received in advance for the 2018/19 Financial Year of $827,877.

Non‐Operating Grant Income This significant revenue in 2017/18 relates to the transfer of Lot 330 Ocean Drive to the City from the Department of Primary Industries and Regional Development for compensation for the College Grove Joint Venture agreement.

Page 14 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUE AND EXPENSES (continued)

(a) Revenue (continued)

2019 2018 $$ Contributions, Reimbursements and Donations Reimbursements and Recoveries 717,710 826,081 Contributions and Donations 381,803 277,437 1,099,513 1,103,518

Fees and Charges General Purpose 149,626 144,058 Governance 93,730 100,100 Law, Order, Public Safety 405,789 483,903 Health 495,824 443,533 Education and Welfare 3,537 2,148 Community Amenities 5,796,707 5,942,489 Recreation and Culture 4,270,395 4,474,717 Transport 512,677 644,004 Economic Services 246,792 277,126 Other Property and Services 860,409 909,995 12,835,486 13,422,073

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

Interest Earnings 2019 2019 2018 Actual Budget Actual $$$ Interest Earnings ‐ Operating ‐ Reserve Funds 16,102 850 13,592 ‐ General Funds 1,079,214 967,229 1,043,806 ‐ Other Interest Revenue (refer Note 26(e)) 470,980 403,352 418,354 1,566,296 1,371,431 1,475,751

Interest Earnings ‐ Non‐Operating ‐ Investments ‐ Capital Grants 8,323 ‐ 82,493 8,323 ‐ 82,493

Page 15 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUES AND EXPENSES (continued)

(b) Grant Revenue

2019 2018 Grants and Contributions for the Development of Assets received: $$ Dept. Primary Industries & Regional Development Upgrade Halifax Park Infrastructure 1,500,000 ‐ Dept. Local Government, Sports & Cultural Industries Install Hay Park South Precinct lighting 1,264,912 ‐ Dept. Local Government, Sports & Cultural Industries Construct Hay Park Central Pavilion 951,240 ‐ Dept. Fire & Emergency Services Bunbury Bushfire Brigade ‐ Isuzu Fire Vehicle (gifted asset) 597,000 ‐ Dept. Industry, Innovation & Science Establish Withers Fibre Link 466,342 ‐ Dept. Infrastructure, Transport, Cities & Regional Development Roads to Recovery reseal program 407,296 758,903 Main Roads Realign and widen Ocean Drive 321,104 502,729 Dept. Local Government, Sports & Cultural Industries Install Box Culverts to pipe 5 Mile Brook 283,848 ‐ Dept. Primary Industries & Regional Development Installation of digital billboard 200,000 ‐ Main Roads Reseal Picton Road 185,713 ‐ Dept. Industry, Innovation & Science Implement CBD CCTV Network 130,500 ‐ Main Roads Renew Parade Road 124,176 84,819 Dept. of Water & Environmental Regulation Renew and improve drainage (Brockman Park) 120,000 ‐ Main Roads Expand cycleways 119,835 ‐ Dept. Transport Renew cycle path Estuary Drive 83,238 ‐ Main Roads Upgrade Ecclestone Street footpaths 75,144 ‐ Main Roads Extend left hand turning pocket 49,280 ‐ Main Roads Realign and Widen Koombana Drive 45,968 ‐ Dept. Primary Industries & Regional Development Connecting Bunbury Geographe ‐ Connect Dig 32,810 ‐ Main Roads Improvement of Albert Road & Blair Street 32,454 ‐ Dept. Industry, Innovation & Science Install hotspot street lighting 2018/19 18,088 ‐ Civil Infrastructure contributions Construct heritage community fishing & crabbing platform 13,653 ‐ Public Transport Authority Expand path network 8,400 ‐ Main Roads Upgrade street lighting on Sandridge Road 5,333 ‐ Bella Burgemeister Install community lockers 3,000 ‐ Dept. Planning, Lands & Heritage College Grove South JV Compensation ‐ 3,250,000 Lotterywest Construct new playground, Koombana Bay ‐ 599,825

Page 16 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUES AND EXPENSES (continued)

(b) Grant Revenue (continued)

2019 2018 Grants and Contributions for the Development of Assets received (continued): $$ Main Roads Reconstruct and widen Koombana Drive ‐ ‐ Main Roads Upgrade intersection of Parade Rd / Knight St ‐ 504,514 Main Roads Upgrade Parade Road bus stop ‐ 168,279 Dept. Infrastructure, Transport, Cities & Regional Development Edward Street road and drainage modifications ‐ 152,016 Main Roads Reseal Old Coast Rd, Pelican Point ‐ 141,242 City of Bunbury Surf Life Saving Club Construct accessible ramp at Back Beach ‐ 110,000 South West Development Commission Upgrade Kelly Park Playground ‐ 90,000 Dept. Transport Upgrade and widen Jetty Road ‐ 80,000 Dept. Fire & Emergency Services Construct helipad at Bunbury Airport ‐ 79,812 Main Roads Install pedestrian refuge Spencer Street ‐ 75,362 Dept. Infrastructure, Transport, Cities & Regional Development Upgrade Spencer / Cornwall Sts intersection ‐ 43,584 Bunbury Yacht Club Raise the Koombana footbridge ‐ 36,364 Tourism Western Australia Implement Visitor Centre Upgrades ‐ 34,121 Dept. Fire & Emergency Services Construct trailer shed for SES ‐ 30,256 WA Local Government Koombana Foreshore Redevelopment ‐ 30,000 Main Roads Improve City's Landscaping, Parks, Gardens ‐ 30,000 South West Catchments Council Renew landscaping/irrigation Queens Gardens ‐ 28,670 Airservices Australia Installation of Airport Weather Camera ‐ 24,131 Dept. Infrastructure, Transport, Cities & Regional Development Install traffic management devices ‐ 23,691 Developer Contributions Renew and upgrade path network ‐ 17,763 Dept. Infrastructure, Transport, Cities & Regional Development Hotspot street lighting ‐ 6,639

7,039,334 6,902,721

Page 17 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUES AND EXPENSES (continued)

(b) Grant Revenue (continued)

2019 2018 Operating Grants received: $$ Local Government Grants Commission Receive general purpose grants ‐ roads 888,010 867,189 Local Government Grants Commission Receive general purpose grants ‐ general 640,342 663,710 Federal Assistance Grant Koombana Bridge 314,157 ‐ Main Roads Receive general purpose grants ‐ roads 198,470 116,439 Dept. Local Government, Sports & Cultural Industries Operate Bunbury Regional Art Gallery 170,000 170,000 Dept. Communication & the Arts Indigenous Arts Program 80,000 80,000 Dept. Fire & Emergency Services Administer Bushfire Brigade payments 62,801 51,935 Dept. Fire & Emergency Services Administer State Emergency Service payments 52,726 47,163 Dept. Primary Industries & Regional Development Connect with Asia 43,700 ‐ Lotterywest Conduct Australia Day event 30,000 30,000 The Good Things Foundation Deliver Be Connected Capacity Building 25,000 ‐ Dept. of Water & Environmental Regulation Better Bins Kerbside Collection Complement 24,229 164,852 South West Development Commission Regional Tourism Strategy Implementation 20,000 ‐ Western Australia Police Force Implement Wipe Out Graffiti Program 19,764 ‐ Public Transport Authority Maintain bus shelters 19,165 22,932 Dept. Primary Industries & Regional Development Install Beach Emergency Numbers 17,819 ‐ Dept. Education Provide traineeships and cadetships 16,000 21,400 Healthway Conduct youth events and initiatives 12,000 ‐ Dept. Local Government, Sports & Cultural Industries Deliver every day club funding project 8,000 ‐ Tourism Western Australia Produce Regional Mountain Bike Maps 5,000 ‐ Dept. Jobs, Tourism, Science & Innovation Deliver "The Makerspace" digital and tech 4,397 ‐ Dept. Local Government, Sports & Cultural Industries Coordinate art exhibitions 3,647 ‐ Western Australia Police Force Support Bunbury RoadWise Committee 1,000 ‐ Dept. Local Government, Sports & Cultural Industries Design plans for Hay Park Sporting Precinct ‐ 150,000 Dept. Local Government, Sports & Cultural Industries Deliver KidSport project ‐ 92,096 Dept. Local Government, Sports & Cultural Industries Deliver Club Development program ‐ 40,000 Water Corporation WA Deliver outcomes from Greener City Strategy ‐ 40,000

Page 18 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUES AND EXPENSES (continued)

(b) Grant Revenue (continued)

2019 2018 Operating Grants received (continued): $$ Tourism Western Australia Implement Bunbury‐Geographe Tourism Brand ‐ 24,990 South West Development Commission Develop Regional Tourism Strategy infrastructure ‐ 20,000 Dept. Local Government, Sports & Cultural Industries Implement Early Years Strategy ‐ 20,000 Healthway Deliver SHIFT 2018 Youth Festival ‐ 15,000 Dept. Transport Bunbury Airport Master Plan ‐ 14,863 Office of Emergency Management Safer Communities Network ‐ 12,000 Dept. Local Government, Sports & Cultural Industries Youth Development Scholarship ‐ 6,700

2,656,227 2,671,269

NOTE General Purpose Grants ‐ Roads and General In 2018/19 the City received a general purpose grant advance payment for the 2019/20 financial year of $809,671. In 2017/18 the City received a general purpose grant advance payment for the 2018/19 financial year of $827,877.

Page 19 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUE AND EXPENSES (continued)

(c) Conditions over Grants/Contributions Opening Closing Closing Balance (1) Received (2) Expended (3) Balance (1) Received (2) Expended (3) Balance Function/Activity 1/07/2017 2017/18 2017/18 30/06/2018 2018/19 2018/19 30/06/2019 Grant/Contribution $ $ $ $$$$ Governance Management of funds for Bunbury Marine project 703,225 6,863 (241,935) 468,153 3,503 (46,358) 425,298

Law, Order and Public Safety Implement CCTV CBD Network Stage 5 ‐ ‐ ‐ ‐ 130,500 (23,022) 107,478 Design and construct Bunbury SES headquarters 37,333 ‐ ‐ 37,333 ‐ (12,247) 25,086 Develop Safer Communities ‐ 11,891 ‐ 11,891 ‐ (7,790) 4,101 Implement State CCTV Strategy Program 28,849 ‐ (28,849) ‐ ‐ ‐ ‐

Education and Welfare Deliver "Be Connected Capacity Building" program ‐ ‐ ‐ ‐ 25,000 ‐ 25,000 Deliver "The Makerspace" digital and technology skills ‐ ‐ ‐ ‐ 4,397 ‐ 4,397

Community Amenities Renew and improve drainage (Brockman Park) ‐ ‐ ‐ ‐ 120,000 ‐ 120,000 Campus Precinct Study 5,715 ‐ ‐ 5,715 ‐ ‐ 5,715 Better Bins Kerbside Collection Program 164,852 164,852 (102,424) 227,280 ‐ (227,280) ‐

Recreation and Culture Construct Hay Park Central Pavilion ‐ ‐ ‐ ‐ 959,563 ‐ 959,563 Detailed design plans for Hay Park Precinct ‐ 148,000 ‐ 148,000 ‐ (27,621) 120,379 Conduct Indigenous Art Program at BRAG ‐ 55,040 ‐ 55,040 80,000 (25,422) 109,618 Construct heritage fishing and crabbing platform 94,091 ‐ ‐ 94,091 ‐ ‐ 94,091 Construct heritage interpretation, Koombana Bay 58,519 ‐ ‐ 58,519 ‐ ‐ 58,519 Connect with Asia ‐ ‐ ‐ ‐ 43,700 ‐ 43,700

Page 20 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUE AND EXPENSES (continued)

(c) Conditions over Grants/Contributions (continued) Opening Closing Closing Balance (1) Received (2) Expended (3) Balance (1) Received (2) Expended (3) Balance Function/Activity 1/07/2017 2017/18 2017/18 30/06/2018 2018/19 2018/19 30/06/2019 Grant/Contribution $ $ $ $$$$ Recreation and Culture (continued) Deliver outcomes of Greener City Strategy ‐ 40,000 ‐ 40,000 ‐ ‐ 40,000 Refurbish Hay Park Grounds 16,091 20,455 (25,040) 11,506 22,727 ‐ 34,233 Construct heritage fishing and crabbing platform ‐ ‐ ‐ ‐ 16,653 ‐ 16,653 Construct heritage interpretation, Koombana Bay 12,548 ‐ ‐ 12,548 ‐ ‐ 12,548 Deliver "Every Club" (Dept Sport & Rec) program ‐ ‐ ‐ ‐ 8,136 (2,604) 5,532 Shorelines Cultural Program 4,200 ‐ ‐ 4,200 ‐ ‐ 4,200 Participate in Xiuzhou (Jiaxing) Reciprocal Art Exchange ‐ ‐ ‐ ‐ 3,077 (1,005) 2,072 Noongar Arts Strategy 10,000 ‐ ‐ 10,000 ‐ (10,000) ‐ Expand and upgrade Koombana Bay Foreshore 11,498,424 ‐ (11,498,424) ‐ ‐ ‐ ‐ Changing Place ‐ Koombana Bay Upgrade 70,000 ‐ (70,000) ‐ ‐ ‐ ‐ Deliver SilverSport Funding 54,416 ‐ (54,416) ‐ ‐ ‐ ‐ BREC Capital Improvements ‐ FlyTower 44,138 ‐ (44,138) ‐ ‐ ‐ ‐ Install accessible ramp at Koombana Bay 28,842 ‐ (28,842) ‐ ‐ ‐ ‐ Implement Tourism WA Free Wi‐Fi at Visitor Centre 7,849 ‐ (7,849) ‐ ‐ ‐ ‐ Develop 'The Classroom' ‐ Museum and Heritage Centre 1,385 ‐ (1,385) ‐ ‐ ‐ ‐ Deliver KidSport Funding 685 ‐ (685) ‐ ‐ ‐ ‐ Deliver South West Sports Hall of Fame project 455 ‐ (455) ‐ ‐ ‐ ‐

Transport Upgrade Halifax Business Park Infrastructure ‐ ‐ ‐ ‐ 1,500,000 ‐ 1,500,000 Koombana Bridge general maintenance ‐ ‐ ‐ ‐ 314,157 ‐ 314,157 Implement Wipe‐out Graffiti program ‐ ‐ ‐ ‐ 19,764 (13,439) 6,325 Upgrade street lighting on Sandridge Road East ‐ ‐ ‐ ‐ 5,333 (1,420) 3,913

Page 21 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUE AND EXPENSES (Continued)

(c) Conditions over Grants/Contributions (continued) Opening Closing Closing Balance (1) Received (2) Expended (3) Balance (1) Received (2) Expended (3) Balance Function/Activity 1/07/2017 2017/18 2017/18 30/06/2018 2018/19 2018/19 30/06/2019 Grant/Contribution $ $ $ $$$$ Transport (continued) Upgrade and widen Jetty Road ‐ 37,713 ‐ 37,713 ‐ (37,713) ‐ Construct helipad at Bunbury Airport ‐ 23,622 ‐ 23,622 ‐ (23,622) ‐ RoadWise ‐ "M8 the call can W8" campaign 2,101 ‐ (2,101) ‐ ‐ ‐ ‐

Economic Services Installation of digital billboard, Forrest Highway ‐ ‐ ‐ ‐ 200,000 ‐ 200,000 Regional Tourism Strategy ‐ Infrastructure 20,000 20,000 ‐ 40,000 ‐ (2,500) 37,500 Connecting Bunbury Geographe ‐ ‐ ‐ ‐ 32,810 ‐ 32,810 Produce Regional Mountain Bike maps ‐ ‐ ‐ ‐ 9,000 ‐ 9,000 Regional Tourism Strategy Implementation 44,220 5,000 ‐ 49,220 ‐ (49,220) ‐ Implementation of Bunbury Geographe Branding ‐ 24,990 ‐ 24,990 ‐ (24,990) ‐ Establish a Bunbury‐Geographe Map ‐ 19,205 ‐ 19,205 ‐ (19,205) ‐ Implement Visitor Centre Upgrades ‐ 11,913 ‐ 11,913 ‐ (11,913) ‐

12,907,938 589,544 (12,106,543) 1,390,939 3,498,320 (567,371) 4,321,888 Notes: (1) Grants/Contributions recognised as revenue in a previous reporting period which were not expended at the close of that previous reporting period.

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

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

Page 22 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

2. REVENUES AND EXPENSES (continued)

(d) Expenses 2019 2018 $$ Auditors Remuneration ‐ Audit of the Annual Financial Report 36,000 18,000 ‐ Financial Management Review 3,500 6,600 ‐ Other Services 5,450 5,725 44,950 30,325

Interest Expenses (Finance Costs) Borrowings 676,531 665,055 Borrowings ‐ self‐supporting 6,646 51,822 Refer Note 16(b) 683,177 716,877

Rental Charges ‐ Operating Leases 153,890 188,210

(e) Loss on Asset Disposals

The main reason for the increase in Loss on Asset Disposal is due to changes to the Local Government (Financial Management) Regulations, Section 17A(5) that requires from 1 July 2018 that assets with a fair value at the date of acquisition of under $5,000 are excluded from the assets of the local government. The impact of these changes for the City of Bunbury is shown in the table below:

2019 2018 $$ Loss from Sale or Disposal 4,485,579 4,314,823 Removal of assets from the Asset Register (Fin Reg 17A(s)) 403,709 ‐ Total Loss on Asset Disposal 4,889,288 4,314,823

Note: Assets under $5,000 which because of their nature and portability, and carry a higher risk of being misused or stolen, are now recorded on a Portable and Attractive Asset Register.

Further details on Loss on Asset Disposal are shown in Note 12(a).

Page 23 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

3. CASH AND CASH EQUIVALENTS 2019 2018 NOTE $$ Cash at bank and on hand 3,471,828 5,335,650 Term deposits 34,288,466 30,979,477 37,760,294 36,315,127 Comprises Unrestricted cash and cash equivalents 11,354,498 9,237,142 Restricted cash and cash equivalents 26,405,796 27,077,985 37,760,294 36,315,127

The following restrictions have been imposed by regulations or other externally imposed requirements:

Unspent grants 2(c) 4,321,888 1,390,939 Unspent loans 16(c) 767,715 ‐ Cash Backed Reserves ACDI Equipment Replacement Program 4 734,693 734,693 Airport 4 195,567 133,278 Asset Management and Renewal 4 2,091,373 4,687,042 Building Restoration and Maintenance 4 1,405,914 2,640,254 Bunbury Museum and Heritage Centre 4 5,474 3,850 Canal Management 4 598,158 537,304 City Arts Collection 4 50,801 46,368 City of Bunbury General Parking 4 8,365,026 8,284,129 College Grove Subdivision Amended Joint Venture 4 27,454 28,107 Depot Construction 4 ‐ 709,742 Disaster Relief Fund ‐ (City of Bunbury) 4 100,000 100,000 Dual Use Path Upgrade Contributions 4 59,746 59,746 Employee Entitlements and Insurance 4 1,099,805 992,196 Environmental 4 196,710 182,679 Hay Park Regional Athletics Track 4 510,665 440,665 Heritage Building Maintenance 4 27,500 27,500 Infrastructure Development 4 757,867 557,739 Land Subdivision and Development 4 340,723 340,723 Local Planning Policy Framework 4 138,255 88,255 Meat Inspection 4 236,036 163,554 Planning and Development Act Section 152 4 ‐ 678,325 Plant and Equipment 4 343,357 417,357 Public Art 4 73,536 73,536 Refuse Collection and Waste Minimisation 4 3,250,684 2,996,047 Road Upgrade Contributions 4 171,704 171,704 Town Planning Scheme Land Acquisition and Compensation 4 132,505 132,505 Withers 4 402,641 459,748 26,405,796 27,077,985

SIGNIFICANT ACCOUNTING POLICIES Cash and cash equivalents Cash and cash equivalents (continued) Cash and cash equivalents include cash on hand, cash at subject to an insignificant risk of changes in value and bank bank, deposits available on demand with banks and other overdrafts. Bank overdrafts are reported as short term short term highly liquid investments with original borrowings in current liabilities in the statement of maturities of six months or less that are readily financial position. convertible to known amounts of cash and which are

Page 24 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

4. RESERVES ‐ CASH BACKED 2019 2019 2018 Actual Budget Actual $$$ ACDI Equipment Replacement Program Purpose: For the Purchase and upgrade of equipment used by ACDI Opening Balance 734,693 734,693 660,417 Amount Set Aside / Transfer to Reserve ‐ ‐ 93,167 Amount Used / Transfer from Reserve ‐ ‐ (18,891) 734,693 734,693 734,693

Airport Purpose: To receipt funds from airport leases for the future provision of asset management and expansion projects at the airport Opening Balance 133,278 133,278 70,032 Amount Set Aside / Transfer to Reserve 125,470 123,786 124,087 Amount Used / Transfer from Reserve (63,181) (67,107) (60,841) 195,567 189,957 133,278

Asset Management and Renewal Purpose: To provide funding for future asset management and renewal programs and projects Opening Balance 4,687,042 4,687,042 7,049,972 Amount Set Aside / Transfer to Reserve 481,343 223,000 478,634 Amount Used / Transfer from Reserve (3,077,012) (4,479,594) (2,841,564) 2,091,373 430,448 4,687,042

Building Restoration and Maintenance Purpose: For the purchase and upgrade of Council buildings Opening Balance 2,640,254 2,640,254 457,254 Amount Set Aside / Transfer to Reserve 1,168,733 1,168,733 2,183,000 Amount Used / Transfer from Reserve (2,403,073) (2,645,000) ‐ 1,405,914 1,163,987 2,640,254

Bunbury Museum and Heritage Centre Purpose: To provide funding for the Museum Opening Balance 3,850 3,850 ‐ Amount Set Aside / Transfer to Reserve 1,624 ‐ 3,850 Amount Used / Transfer from Reserve ‐ ‐ ‐ 5,474 3,850 3,850

Canal Management Purpose: To receipt specific area rating from the Pelican Point Canal Development to provide for the ongoing management and maintenance of the canal residential and commercial area Opening Balance 537,304 537,304 478,599 Amount Set Aside / Transfer to Reserve 61,480 46,031 58,705 Amount Used / Transfer from Reserve (626) (190,000) ‐ 598,158 393,335 537,304

Page 25 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

4. RESERVES ‐ CASH BACKED (continued) 2019 2019 2018 Actual Budget Actual $$$ City Arts Collection Purpose: For the Purchase and upgrade of Council Art Collections Opening Balance 46,368 46,368 40,211 Amount Set Aside / Transfer to Reserve 4,433 ‐ 6,157 Amount Used / Transfer from Reserve ‐ ‐ ‐ 50,801 46,368 46,368

City of Bunbury General Parking Purpose: To fund Council's general parking motor vehicle parking requirements within the City of Bunbury and promotion of the Central Business District (CBD) Opening Balance 8,284,129 8,284,129 2,050,725 Amount Set Aside / Transfer to Reserve 443,632 45,872 7,463,076 Amount Used / Transfer from Reserve (362,735) (682,282) (1,229,672) 8,365,026 7,647,719 8,284,129

College Grove Subdivision Amended Joint Venture Purpose: To provide funding for the development of land relating to the amended College Grove joint venture Opening Balance 28,107 28,107 33,766 Amount Set Aside / Transfer to Reserve 797 850 925 Amount Used / Transfer from Reserve (1,450) (20,000) (6,583) 27,454 8,957 28,107

Depot Construction Purpose: To receipt funds received from Council's associated land sales raised for the purpose of constructing a new depot Opening Balance 709,742 709,742 2,992,682 Amount Set Aside / Transfer to Reserve ‐ ‐ (2,282,940) Amount Used / Transfer from Reserve (709,742) (709,742) ‐ ‐ ‐ 709,742

Disaster Relief Fund ‐ (City of Bunbury) Purpose: To provide relief of personal hardship and distress arising from natural disasters Opening Balance 100,000 100,000 100,000 Amount Set Aside / Transfer to Reserve ‐ 20,000 3,000 Amount Used / Transfer from Reserve ‐ (20,000) (3,000) 100,000 100,000 100,000

Dual Use Path Upgrade Contributions Purpose: To receipt funds received from Council's subdivision conditions for the future provision of dual use paths improvements and path management measures to benefit path infrastructure Opening Balance 59,746 59,746 59,746 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐ 59,746 59,746 59,746

Page 26 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

4. RESERVES ‐ CASH BACKED (continued) 2019 2019 2018 Actual Budget Actual $$$ Employee Entitlements and Insurance Purpose: To provide future funds for employee related entitlements and insurance liabilities Opening Balance 992,196 992,196 979,020 Amount Set Aside / Transfer to Reserve 130,587 92,781 140,084 Amount Used / Transfer from Reserve (22,978) (57,635) (126,908) 1,099,805 1,027,342 992,196

Environmental Purpose: To receipt funds from specified are rate Environmental Services Levy for the future provision of environmental management and associated projects Opening Balance 182,679 182,679 189,707 Amount Set Aside / Transfer to Reserve 28,900 28,900 ‐ Amount Used / Transfer from Reserve (14,869) (160,622) (7,028) 196,710 50,957 182,679

Hay Park Regional Athletics Track Purpose: To retain funds for the future replacement of the regional athletics track Opening Balance 440,665 440,665 370,665 Amount Set Aside / Transfer to Reserve 70,000 70,000 70,000 Amount Used / Transfer from Reserve ‐ ‐ ‐ 510,665 510,665 440,665

Heritage Building Maintenance Purpose: Income received from the lease or rental of heritage buildings to be set aside from the maintenance of heritage buildings Opening Balance 27,500 27,500 27,500 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐ 27,500 27,500 27,500

Infrastructure Development Purpose: To receipt funds specifically raised from the annual rates levied for the renewal and upgrade of existing infrastructure assets Opening Balance 557,739 557,739 153,333 Amount Set Aside / Transfer to Reserve 1,107,253 1,107,253 725,026 Amount Used / Transfer from Reserve (907,125) (1,232,384) (320,620) 757,867 432,608 557,739

Land Subdivision and Development Purpose: To provide funding for land subdivision development Opening Balance 340,723 340,723 340,723 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐ 340,723 340,723 340,723

Page 27 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

4. RESERVES ‐ CASH BACKED (continued) 2019 2019 2018 Actual Budget Actual $$$ Local Planning Policy Framework Purpose: To provide funding for Local Planning Policy Framework Opening Balance 88,255 88,255 100,000 Amount Set Aside / Transfer to Reserve 50,000 50,000 50,000 Amount Used / Transfer from Reserve ‐ (68,507) (61,745) 138,255 69,748 88,255

Meat Inspection Purpose: To make funds available to enable the monitoring of annual meat inspection income and expenditure to ensure as far as possible the service is carried out on a self balancing basis Opening Balance 163,554 163,554 112,636 Amount Set Aside / Transfer to Reserve 72,482 349,664 295,625 Amount Used / Transfer from Reserve ‐ (354,450) (244,707) 236,036 158,768 163,554

Planning and Development Act Section 152 Purpose: To receipt income from the sale of Town Planning Act Section 20A Public Open Space Reserves to fund other public open space developments in accordance with the Town Planning Act Opening Balance 678,325 678,325 541,325 Amount Set Aside / Transfer to Reserve ‐ 24,581 137,000 Amount Used / Transfer from Reserve (678,325) (702,906) ‐ ‐ ‐ 678,325 Note: As required under Section 152 of the Planning and Development Act, $678,325 in 2018/19 has been transferred from the Reserve to Trust (Note 30).

Plant and Equipment Purpose: To provide for the purchase of plant and equipment, including office furniture, office equipment, computer hardware and software Opening Balance 417,357 417,357 492,410 Amount Set Aside / Transfer to Reserve ‐ ‐ 126,043 Amount Used / Transfer from Reserve (74,000) (103,187) (201,096) 343,357 314,170 417,357

Public Art Purpose: To provide funding for the installation of artworks in public spaces Opening Balance 73,536 73,536 135,333 Amount Set Aside / Transfer to Reserve ‐ ‐ 25,000 Amount Used / Transfer from Reserve ‐ ‐ (86,797) 73,536 73,536 73,536

Refuse Collection and Waste Minimisation Purpose: To receipt any annual surplus from Council's waste collection/minimisation program to provide funding for Council's sanitation program Opening Balance 2,996,047 2,996,047 3,197,477 Amount Set Aside / Transfer to Reserve 634,066 5,707,816 5,721,547 Amount Used / Transfer from Reserve (379,429) (7,493,884) (5,922,977) 3,250,684 1,209,979 2,996,047

Page 28 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

4. RESERVES ‐ CASH BACKED (continued) 2019 2019 2018 Actual Budget Actual $$$ Road Upgrade Contributions Purpose: To receipt funds received from Council's subdivision conditions for the future provision of road improvements and traffic management measures to benefit road infrastructure Opening Balance 171,704 171,704 171,704 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐ 171,704 171,704 171,704

Town Planning Scheme Land Acquisition and Compensation Purpose: For land acquisitions and compensation payable in respect to the implementation of Council's Town Planning Schemes Opening Balance 132,505 132,505 132,505 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve ‐ ‐ ‐ 132,505 132,505 132,505

Withers Purpose: To provide funding for the implementation of the Withers Action Plan Opening Balance 459,748 459,748 309,974 Amount Set Aside / Transfer to Reserve ‐ ‐ ‐ Amount Used / Transfer from Reserve (57,107) (228,000) 149,774 402,641 231,748 459,748

TOTAL RESERVES 21,316,193 15,531,013 25,687,046

Reserves Summary Total Opening Balance 25,687,046 25,687,046 21,247,715

Total Amount Set Aside / Transfer to Reserve 4,380,800 9,059,267 15,421,986 Total Amount Used / Transfer from Reserve (8,751,652) (19,215,300) (10,982,655) Net Transfers to / (from) Reserves (4,370,853) (10,156,033) 4,439,331

TOTAL RESERVES 21,316,193 15,531,013 25,687,046

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

Page 29 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

5. TRADE AND OTHER RECEIVABLES 2019 2018 Current $$ Rates Outstanding 1,407,799 1,052,922 Sundry Debtors 532,884 500,768 GST Receivable 183,923 403,372 Infringements 201,592 298,034 2,326,199 2,255,097

Non‐Current Rates Outstanding ‐ Pensioners 569,831 494,331 Deferred Debtors 13,780 27,121 583,611 521,452

SIGNIFICANT ACCOUNTING POLICIES Trade and other receivables Classification and subsequent measurement Trade and other receivables include amounts due from Receivables expected to be collected within 12 months of ratepayers for unpaid rates and service charges and other the end of the reporting period are classified as current amounts due from third parties for goods sold and assets. All other receivables are classified as non‐current services performed in the ordinary course of business. assets.

Trade receivables are recognised at original invoice Trade receivables are held with the objective to collect the amount less any allowances for uncollectible amounts contractual cashflows and therefore measures them (i.e. impairment). The carrying amount of net trade subsequently at amortised cost using the effective interest receivables is equivalent to fair value as it is due for rate method. settlement within 30 days. Due to the short term nature of current receivables, their Impairment and risk exposure carrying amount is considered to be the same as their fair Information about the impairment of trade receivables value. Non‐current receivables are indexed to inflation, any and their exposure to credit risk and interest rate risk can difference between the face value and fair value is be found in Note 29(b). considered immaterial.

Previous accounting policy: Impairment of trade receivables In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. Individual receivables which were known to be uncollectible were written off by reducing the carrying amount directly. The other receivables were assessed collectively to determine whether there was objective evidence that an impairment had been incurred but not yet identified. For these receivables the estimated impairment losses were recognised in a separate provision for impairment.

Page 30 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

6. INVENTORIES 2019 2018 $$ Current Construction Materials and Fuel 57,366 18,740 Bunbury Visitor Information Centre Stock Held for Sale 6,490 5,814 Bunbury Wildlife Park Stock Held for Sale 14,743 19,456 South West Sports Centre Stock Held for Sale 17,205 17,981 95,804 61,991

The following movements in inventories occurred during the year: Carrying Amount at 1 July 2018 61,991 56,340 Inventories expensed during the year (175,312) (205,973) Additions to inventory 209,125 211,624 Carrying Amount at 30 June 2019 95,804 61,991

SIGNIFICANT ACCOUNTING POLICIES General Land held for resale (continued) Inventories are measured at the lower of cost and net Borrowing costs and holding charges incurred after realisable value. development is completed are expensed.

Net realisable value is the estimated selling price in the Gains and losses are recognised in profit or loss at the time ordinary course of business less the estimated costs of of signing an unconditional contract of sale if significant completion and the estimated costs necessary to make risks and rewards, and effective control over the land, are the sale. passed onto the buyer at this point.

Land held for resale Land held for resale is classified as current except where it Land held for development and resale is valued at the is held as non‐current based on the Council's intentions to lower cost of net realisable value. Cost includes the cost release for sale. of acquisition, development, borrowing costs and holding costs until completion of development.

Page 31 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

7. OTHER ASSETS AND ASSETS CLASSIFIED AS HELD FOR SALE 2019 2018 $$ Other Current Assets Prepayments 653,197 500,738 Accrued income 93,559 93,786 746,755 594,524

Non‐Current Assets Held for Sale Land ‐ Lot 1881 Koombana Drive, Bunbury 1,500,000 ‐ 1,500,000 ‐

SIGNIFICANT ACCOUNTING POLICIES Other current assets Non‐current assets held for sale (continued) Other non‐financial assets include prepayments which Non‐current assets classified as held for sale are valued at represent payments in advance of receipt of goods or the lower of the carrying amount and fair value less costs services or that part of expenditure made in one to sell. accounting period covering a term extending beyond that period. The fair value of land and buildings was determined using the sales comparison approach using comparable Non‐current assets held for sale properties in the area. This is a level 2 measurement as per Assets are classified as held for sale where the carrying the fair value hierarchy set out in Note 34(h). amount will be recovered through a sale rather than continuing use and the asset is available for immediate sale with a sale being highly probable.

8. INVESTMENTS

Funds surplus to the City's daily operating requirements and restricted funds are invested with approved financial institutions. To manage cashflow requirements and maximise return, funds are invested in: Term deposits with the following financial institutions:‐ ‐ ANZ Bank ‐ Bankwest ‐ Bendigo Bank ‐ Commonwealth Bank of Australia ‐ National Australia Bank ‐ Westpac Banking Corporation On‐call Cash deposit funds with:‐ ‐ Commonwealth Bank of Australia ‐ WA Treasury Corporation

Invested Funds 2019 2018 Investment Type TERM $ $ Bankwest Term Deposit Short Term 10,121,438 2,531,218 National Australia Bank Term Deposit Short Term 5,000,000 4,500,000 Westpac Banking Corporation Term Deposit Short Term 19,167,028 23,948,259 Commonwealth Bank of Australia On‐Call Fund Oncall 2,000,000 4,000,000 WA Treasury Corporation On‐Call Fund Oncall 243,512 240,009 36,531,978 35,219,486

Page 32 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

9. OTHER FINANCIAL ASSETS 2019 2018 NOTE $$ (a) Current Assets Other financial assets at amortised cost 44,345 ‐ Other loans and receivables ‐ 17,532 44,345 17,532

Other Financial Assets at Amortised Cost Financial assets at amortised cost ‐ term deposits ‐ ‐ Financial assets at amortised cost ‐ self‐supporting loans 44,345 ‐ 44,345 ‐ Financial Assets previously Classified as Loans and Receivables Loans receivable ‐ clubs/institutions ‐ 17,532 ‐ 17,532 44,345 17,532

(b) Non‐current assets Other financial assets at amortised cost 253,634 ‐ Financial assets at fair value through profit and loss 140,137 ‐ Available for sale financial assets ‐ ‐ Other loans and receivables ‐ 61,858 393,771 61,858

Other Financial Assets at Amortised Cost Financial assets at amortised cost ‐ self‐supporting loans 253,634 ‐ 253,634 ‐ Financial Assets at Fair Value through Profit and Loss Unlisted equity investments ‐ ‐ Units in Local Government House Trust 140,137 ‐ 140,137 ‐ Financial Assets previously Classified as Loans and Receivables Loans receivable ‐ clubs/institutions ‐ 61,858 ‐ 61,858 393,771 61,858

Page 33 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

9. OTHER FINANCIAL ASSETS (continued)

(b) Non‐current assets (continued)

Changes in the fair value of Units in Local Government House recognised as non‐current financial assets at fair value through profit and loss have not been recognised nor considered as they are unlikely to be material and unable to be reliably determined at the time of preparation of these Statements.

Loans receivable from clubs/institutions have the same terms and conditions as the related borrowing disclosed in Note 16(b) as self‐supporting loans.

SIGNIFICANT ACCOUNTING POLICIES Other financial assets at amortised cost Previous accounting policy: available for sale financial The City classifies financial assets at amortised cost if both assets of the following criteria are met: Available‐for‐sale financial assets were non‐derivative ‐ the asset is held within a business model whose financial assets that were either not suitable to be objective is to collect the contractual cashflows, and classified as other categories of financial assets due to their ‐ the contractual terms give rise to cash flows that are nature, or they were designated as such by management. solely payments of principal and interest. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or Financial assets at fair value through profit and loss determinable payments. The City classifies the following financial assets at fair value through profit and loss: Previous accounting policy: loans and receivables ‐ debt investments which do not qualify for Non‐derivative financial assets with fixed or determinable measurement at either amortised cost or fair value payments that were not quoted in an active market and through other comprehensive income. are solely payments of principal and interest were ‐ equity investments which the City has not elected to classified as loans and receivables and are subsequently recognise fair value gains and losses through other measured at amortised cost, using the effective interest comprehensive income. rate method.

Impairment and risk Information regarding impairment and exposure to risk can be found at Note 29.

Page 34 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

10. PROPERTY, PLANT AND EQUIPMENT

(a) Movements in Carrying Amounts Movement in the carrying amounts of each class of property, plant and equipment between the beginning and the end of the current financial year. Plant and Furniture and Arts and Capital WIP Land Buildings Vehicles Equipment Fittings Culture Movement TOTAL $$$$$$$$ Balance at 1 July 2017 111,917,389 129,472,677 5,078,479 2,970,768 231,269 2,201,752 586,496 252,458,830 Additions 3,254,479 3,640,946 1,062,560 1,030,043 26,026 18,571 4,191,836 13,224,461 (Disposals) (844,052) (104,250) (373,156) (15,046) (5,135) ‐ ‐ (1,341,639) Revaluation increment/(decrement) ‐ ‐ ‐ ‐ (18,915) ‐ ‐ (18,915) Depreciation (expense) ‐ (3,192,486) (745,435) (671,004) (43,563) (28,657) ‐ (4,681,145) Carrying Amount at 30 June 2018 114,327,816 129,816,887 5,022,449 3,314,761 189,682 2,191,666 4,778,332 259,641,592 Comprises, as at 30 June 2018 Gross carrying amount 114,327,816 133,005,018 6,343,602 3,980,074 189,682 2,220,323 4,778,332 264,844,847 Accumulated depreciation ‐ (3,188,131) (1,321,153) (665,313) ‐ (28,657) ‐ (5,203,255) Carrying Amount at 30 June 2018 114,327,816 129,816,887 5,022,449 3,314,761 189,682 2,191,666 4,778,332 259,641,592

Balance at 1 July 2018 114,327,816 129,816,887 5,022,449 3,314,761 189,682 2,191,666 4,778,332 259,641,592 Additions 1,612,033 1,722,026 1,693,544 1,086,675 25,759 15,567 ‐ 6,155,604 Works in Progress Movement ‐ 3,992,376 31,411 103,987 21,236 ‐ (4,149,009) ‐ (Disposals) (455,676) (805,247) (444,474) (167,161) (150,774) (40,162) ‐ (2,063,493) Revaluation increment/(decrement) ‐ ‐ (564,591) ‐ ‐ ‐ ‐ (564,591) Impairment (Loss) / Reversals ‐ ‐ (99,924) ‐ ‐ ‐ ‐ (99,924) Depreciation (expense) ‐ (3,136,536) (774,789) (893,003) (25,453) (29,052) ‐ (4,858,832) Carrying Amount at 30 June 2019 115,484,174 131,589,506 4,863,626 3,445,259 60,450 2,138,019 629,323 258,210,356 Comprises, as at 30 June 2019 Gross carrying amount 115,484,174 137,835,495 4,863,626 4,899,323 68,245 2,145,601 629,323 265,925,785 Accumulated depreciation ‐ (6,245,989) ‐ (1,454,064) (7,795) (7,582) ‐ (7,715,429) Carrying Amount at 30 June 2019 115,484,174 131,589,506 4,863,626 3,445,259 60,450 2,138,019 629,323 258,210,356

Less land held for re‐sale (Note 7) (1,500,000) (1,500,000) Adjusted Carrying Amount at 30 June 2019 113,984,174 131,589,506 4,863,626 3,445,259 60,450 2,138,019 629,323 256,710,356

Page 35 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

10. PROPERTY, PLANT AND EQUIPMENT (continued)

(b) Fair Value Measurements Fair Value Date of Last Asset Class Hierarchy Valuation Technique Basis of Valuation Valuation Inputs Used Sales comparison (market) approach using recent Independent Land 2 June 2017 Price per hectare observable market data for similar properties registered valuer

Improvements to land valued using cost approach Improvements to land using construction using depreciated replacement cost and Independent costs (level 2) and current condition (Level 3), Buildings 3 June 2017 Market approach using recent observable registered valuer residual values and remaining useful market data for similar properties life assessments (Level 3) inputs Plant and Vehicles ‐ Independent Sales comparison (market) approach using recent Independent 2 June 2019 Market price per item valuation 2019 observable market data for similar assets registered valuer Purchase costs (Level 2) and current condition (Level ‐ Management Market approach and Cost approach using Management 3 June 2019 3), residual values and remaining useful valuation 2019 depreciated replacement cost valuation life assessments (Level 3) inputs Cost approach using depreciated Management Residual values and remaining useful Equipment 3 June 2017 replacement cost valuation life assessments (Level 3) inputs. Cost approach using depreciated Management Residual values and remaining useful Furniture and Fittings 3 June 2018 replacement cost valuation life assessments (Level 3) inputs. Arts and Culture ‐ Independent Market approach using recent observable Independent 2 June 2017 Price per item valuation 2017 market data for similar artwork registered valuer Cost approach using depreciated replacement Purchase costs (Level 2) and current condition (Level ‐ Management Management 3 cost for art and culture asset, excluding June 2017 3), residual values and remaining useful valuation 2017 valuation art collections and public art life assessments (Level 3) inputs

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement. During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant and equipment using either level 2 or level 3 inputs.

Page 36 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

11. INFRASTRUCTURE

(a) Movements in Carrying Amounts

Movement in the carrying amounts of each class of infrastructure between the beginning and the end of the current financial year. Other Capital WIP Roads Paths Stormwater Open Space Marine Structures Bridges Infrastructure Movement TOTAL $$$$$$$$$$ Balance at 1 July 2017 130,725,008 44,194,355 67,158,335 14,726,839 7,157,639 19,492,892 6,435,731 6,303,253 1,552,045 297,746,098 Additions 4,150,644 2,022,047 1,674,110 3,763,951 1,644,346 2,809,690 1,286,768 2,108,578 1,242,734 20,702,868 Disposals (272,082) (574,489) (209,756) (2,982,290) ‐ (33,604) ‐ (101,670) ‐ (4,173,891) Revaluation increments / (decrements) transferred to revaluation surplus 870,072 (3,455,434) (4,262,900) (1,275,216) 7,011,478 1,305,231 (1,563,877) (792,164) ‐ (2,162,810) Impairment (loss)/reversals transferred to profit or loss ‐ ‐ ‐ ‐ ‐ ‐ ‐ (241,175) ‐ (241,175) Depreciation (expense) (3,790,799) (1,414,711) (1,163,709) (1,086,981) (653,958) (456,681) (141,000) (836,359) ‐ (9,544,197) Carrying Amount at 30 June 2018 131,682,841 40,771,768 63,196,079 13,146,303 15,159,506 23,117,529 6,017,623 6,440,464 2,794,779 302,326,892 Comprises, as at 30 June 2018 Gross carrying amount 245,585,951 64,860,532 101,236,413 21,720,026 27,722,386 28,380,620 8,981,388 10,964,908 2,794,779 512,247,004 Accumulated depreciation (113,903,110) (24,088,763) (38,040,334) (8,573,723) (12,562,881) (5,263,092) (2,963,765) (4,524,444) ‐ (209,920,112) Carrying Amount at 30 June 2018 131,682,841 40,771,768 63,196,079 13,146,303 15,159,506 23,117,529 6,017,623 6,440,464 2,794,779 302,326,892

Balance at 1 July 2018 131,682,841 40,771,768 63,196,079 13,146,303 15,159,506 23,117,529 6,017,623 6,440,464 2,794,779 302,326,892 Additions 3,636,758 909,460 1,272,376 490,465 725,434 463,739 ‐ 1,553,406 ‐ 9,051,638 Works in Progress Movement 1,854,633 ‐ 181,874 ‐ (598,191) 261,712 ‐ 232,203 (1,932,231) ‐ Disposals (241,995) (893,564) (277,089) (520,542) (28,951) (1,012,131) ‐ (709,711) ‐ (3,683,983) Reclassifications ‐ ‐ ‐ 753,525 ‐ (753,525) ‐ ‐ ‐ ‐ Reval increments / (decrements) transferred to reval surplus (4,616,408) 776,252 1,581,716 ‐ (436,572) (4,084,781) 2,349 985,316 ‐ (5,792,128) Revaluation (loss)/reversals transferred to profit or loss ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Depreciation (expense) (4,039,970) (1,356,365) (1,189,778) (712,690) (677,157) (406,180) (163,478) (710,310) ‐ (9,255,928) Carrying Amount at 30 June 2019 128,275,859 40,207,553 64,765,178 13,157,062 14,144,069 17,586,363 5,856,493 7,791,367 862,548 292,646,492 Comprises, as at 30 June 2019 Gross carrying amount 260,201,494 65,646,337 103,225,165 22,199,355 27,713,568 22,244,148 8,981,319 11,774,573 862,548 522,848,506 Accumulated depreciation (131,925,635) (25,438,784) (38,459,987) (9,042,293) (13,569,499) (4,657,785) (3,124,826) (3,983,206) ‐ (230,202,015) Carrying Amount at 30 June 2019 128,275,859 40,207,553 64,765,178 13,157,062 14,144,069 17,586,363 5,856,493 7,791,367 862,548 292,646,492

Page 37 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

11. INFRASTRUCTURE (continued)

(b) Fair Value Measurements Fair Value Date of last Asset Class Valuation Technique Basis of valuation Inputs Used Hierarchy Valuation Independent Construction costs and current condition, Cost approach using Roads 3 registered valuer and June 2019 residual values and remaining useful depreciated replacement cost Management valuation life assessments inputs Construction costs and current condition, Cost approach using Paths 3 Management valuation June 2019 residual values and remaining useful depreciated replacement cost life assessments inputs Construction costs and current condition, Cost approach using Stormwater 3 Management valuation June 2019 residual values and remaining useful depreciated replacement cost life assessments inputs Construction costs and current condition, Cost approach using Open Space 3 Management valuation June 2019 residual values and remaining useful depreciated replacement cost life assessments inputs Construction costs and current condition, Cost approach using Independent Marine 3 June 2019 residual values and remaining useful depreciated replacement cost registered valuer life assessments inputs Independent registered Construction costs and current condition, Cost approach using Structures 3 valuer (Public Art) and June 2019 residual values and remaining useful depreciated replacement cost Management valuation life assessments inputs Independent Construction costs and current condition, Cost approach using Bridges 3 registered valuer and June 2019 residual values and remaining useful depreciated replacement cost Management valuation life assessments inputs Construction costs and current condition, Cost approach using Other Infrastructure 3 Management valuation June 2019 residual values and remaining useful depreciated replacement cost life assessments inputs

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement. During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.

Page 38 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

12. PROPERTY, PLANT AND EQUIPMENT (INCLUDING INFRASTRUCTURE)

SIGNIFICANT ACCOUNTING POLICIES Fixed assets AUSTRALIAN ACCOUNTING STANDARDS ‐ INCONSISTENCY Each class of fixed assets within either plant and Land under control equipment or infrastructure, is carried at cost or fair value In accordance with Local Government (Financial as indicated less, where applicable, any accumulated Management) Regulation 16(a)(ii) , the City was required depreciation and impairment losses. to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course, Initial recognition and measurement between showground, racecourse or other sporting or recreational mandatory revaluation dates facility of State or Regional significance. All assets are initially recognised at cost where the fair value of the asset at date of acquisition is equal to or Upon initial recognition, these assets were recorded at above $5,000. all assets are subsequently revalued in cost in accordance with AASB 116. They were then accordance with the mandatory measurement framework. classified as Land and revalued along with other land in accordance with the other policies detailed in this Note. In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus Land under roads costs incidental to the acquisition. For assets acquired at In Western Australia, all land under roads is Crown Land, no cost or for nominal consideration, cost is determined as the responsibility for managing which, is vested in the fair value at the date of acquisition. The cost of non‐ local government. current assets constructed by the City includes the cost of all materials used in construction, direct labour on the Effective as at 1 July 2008, Council elected not to project and an appropriate proportion of variable and recognise any value for land under roads acquired on or fixed overheads. before 30 June 2008. This accords with the treatment available in Australian Accounting Standard AASB 1051 Individual assets acquired between initial recognition and Land Under Roads and the fact Local Government the next revaluation of the asset class in accordance with (Financial Management) Regulation 16(a)(i) prohibits local the mandatory measurement framework, are recognised governments from recognising such land as an asset. at cost and disclosed as being at fair value as management believes cost approximates fair value. They are subject to In respect of land under roads acquired on or after 1 July subsequent revaluation at the next anniversary date in 2008, as detailed above, Local Government (Financial accordance with the mandatory measurement framework. Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset. Revaluation The fair value of fixed assets is determined at least every Whilst such treatment is inconsistent with the three years and no more than five years in accordance requirements of AASB 1051, Local Government (Financial with the regulatory framework. At the end of each period Management) Regulation 4(2) provides, in the event of the valuation is reviewed and where appropriate the fair such an inconsistency, the Local Government (Financial value is updated to reflect current market conditions. This Management) Regulations prevail. process is considered to be in accordance with Local Government (Financial Management) Regulation 17A (2) Consequently, any land under roads acquired on or after 1 which requires property, plant and equipment to be July 2008 is not included as an asset of the City. shown at fair value.

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

Page 39 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

12. PROPERTY, PLANT AND EQUIPMENT (INCLUDING INFRASTRUCTURE) (continued)

(a) Disposals of Assets

The following assets were disposed of during the year:

Net Book Value Sale Price Profit (Loss) Asset by Class Actual Budget Actual Budget Actual Budget $$$$$$

Land 455,676 26,000 1,269,598 1,320,000 813,923 1,294,000 Buildings 805,247 ‐ 63,592 ‐ (741,654) ‐ Plant and Vehicles 444,474 740,489 338,250 746,990 (106,224) 6,501 Equipment 167,161 159 303 24,165 (166,858) 24,006 Furniture and Fittings 150,774 ‐ 367 ‐ (150,407) ‐ Arts and Culture 40,162 ‐ ‐ ‐ (40,162) ‐ Roads 241,995 ‐ ‐ ‐ (241,995) ‐ Paths 893,564 ‐ ‐ ‐ (893,564) ‐ Stormwater 277,089 ‐ ‐ ‐ (277,089) ‐ Open Space 520,542 ‐ ‐ ‐ (520,542) ‐ Marine 28,951 ‐ ‐ ‐ (28,951) ‐ Structures 1,012,131 ‐ ‐ ‐ (1,012,131) ‐ Bridges ‐ ‐ ‐ ‐ ‐ ‐ Other Infrastructure 709,711 ‐ ‐ ‐ (709,711) ‐

5,747,476 766,648 1,672,111 2,091,155 (4,075,365) 1,324,507

Profit 813,923 1,324,507 Loss (4,889,288) ‐ (4,075,365) 1,324,507

(b) Depreciation 2019 2018 $$ Buildings 3,136,536 3,192,486 Plant and Vehicles 774,789 745,435 Equipment 893,003 671,004 Furniture and Fittings 25,453 43,563 Arts and Culture 29,052 28,657 Infrastructure Roads 4,039,970 3,790,799 Paths 1,356,365 1,414,711 Stormwater 1,189,778 1,163,709 Open Space 712,690 1,086,981 Marine 677,157 653,958 Bridges 163,478 141,000 Structures 406,180 456,681 Other Infrastructure 710,310 836,359 14,114,759 14,225,341

Page 40 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

12. PROPERTY, PLANT AND EQUIPMENT (INCLUDING INFRASTRUCTURE) (continued)

(b) Depreciation (continued)

SIGNIFICANT ACCOUNTING POLICIES Depreciation Depreciation (continued) The depreciable amount of all fixed assets including When an item of property, plant and equipment is buildings but excluding freehold land and vested land, are revalued, any accumulated depreciation at the date of depreciated on a straight‐line basis over the individual revaluation is treated in one of the following ways: asset's useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the (a) The gross carrying amount is adjusted in a manner shorter of either the unexpired period of the lease or the that is consistent with the revaluation of the carrying estimated useful life of the improvements. amount of the asset. For example, the gross carrying amount may be restated by reference to observable The assets residual values and useful lives are reviewed, market data or it may be restated proportionately to and adjusted if appropriate, at the end of each reporting the change in the carrying amount. The accumulated period. depreciation at the date of the revaluation is adjusted to equal the difference between the gross carrying An asset's carrying amount is written down immediately amount and the carrying amount of the asset after to its recoverable amount if the asset's carrying amount is taking into account accumulated impairment losses; greater than its estimated recoverable amount. or (b) Eliminated against the gross carrying amount of the Gains and losses on disposals are determined by asset and the net amount restated to the revalued comparing proceeds with the carrying amount. These amount of the asset. gains and losses are included in the statement of comprehensive income in the period in which they arise.

Depreciation rates Typical estimated useful lives for the different asset classes for the current and prior years are included in the table below: Asset Class Useful Life Buildings 10 to 80 years Furniture and Fittings 7 to 13 years Equipment 4 to 60 years Plant and Vehicles 4 to 30 years Arts and Culture 4 to 100 years Roads 25 to 75 years Road Formation Not Depreciated Stormwater 20 to 100 years Open Space 5 to 100 years Pathways 20 to 60 years Bridges 10 to 100 years Marine 8 to 60 years Structures 8 to 80 years Other Infrastructure 6 to 100 years

Page 41 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

13. REVALUATION SURPLUS

Revaluation surpluses have arisen on revaluation of the following classes of non‐current assets:

2019 2018 $$ (i) Land Opening Balance 104,050,153 104,050,153 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐ 104,050,153 104,050,153

(ii) Buildings Opening Balance 79,212,247 79,212,247 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐ 79,212,247 79,212,247

(iii) Plant and Vehicles Opening Balance 564,591 564,591 Revaluation Increment ‐ ‐ Revaluation Decrement (564,591) ‐ ‐ 564,591

(iv) Equipment Opening Balance 378,880 378,880 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐ 378,880 378,880

(v) Furniture and Fittings Opening Balance 144,435 163,350 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ (18,915) 144,435 144,435

(vi) Arts and Culture Opening Balance 617,097 617,097 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ ‐ 617,097 617,097

(vii) Roads Opening Balance 61,706,020 60,835,948 Revaluation Increment ‐ 870,072 Revaluation Decrement (4,616,408) ‐ 57,089,612 61,706,020

(viii) Paths Opening Balance 24,444,824 27,900,258 Revaluation Increment 776,252 ‐ Revaluation Decrement ‐ (3,455,434) 25,221,076 24,444,824

Page 42 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

13. REVALUATION SURPLUS (continued)

2019 2018 $$ (ix) Stormwater Opening Balance 33,204,598 37,467,499 Revaluation Increment 1,581,716 ‐ Revaluation Decrement ‐ (4,262,900) 34,786,314 33,204,598

(x) Open Space Opening Balance 1,781,222 3,056,439 Revaluation Increment ‐ ‐ Revaluation Decrement ‐ (1,275,216) 1,781,222 1,781,222

(xi) Marine Opening Balance 11,178,015 4,166,537 Revaluation Increment ‐ 7,011,478 Revaluation Decrement (436,572) ‐ 10,741,443 11,178,015

(xii) Bridges Opening Balance 1,965,765 3,529,642 Revaluation Increment 2,349 ‐ Revaluation Decrement ‐ (1,563,877) 1,968,114 1,965,765

(xiii) Structures Opening Balance 17,940,906 16,636,255 Revaluation Increment ‐ 1,304,651 Revaluation Decrement (4,084,781) ‐ 13,856,125 17,940,906

(xiv) Other Infrastructure Opening Balance ‐ 792,164 Revaluation Increment 985,316 ‐ Revaluation Decrement ‐ (792,164) 985,316 ‐

TOTAL ASSET REVALUATION SURPLUS 330,832,034 337,188,753

Revaluation Surplus Summary Total Opening Balance 337,188,753 339,371,059 Revaluation Increment 3,345,633 9,186,201 Revaluation Decrement (9,702,352) (11,368,507) TOTAL ASSET REVALUATION SURPLUS 330,832,034 337,188,753

Movements on revaluation of property, plant and equipment (including infrastructure) are not able to be reliably attributed to a program as the assets were revalued by class as provided for by AASB 116 Aus 40.1.

Page 43 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

14. INVESTMENT PROPERTIES

The City holds no investment property at 30 June 2019.

15. TRADE AND OTHER PAYABLES 2019 2018 NOTE $$ Current Sundry Creditors 2,329,450 2,473,266 Accrued Interest on Loans 56,649 61,789 Accrued Salaries and Wages 300,544 264,035 Deposits and Prepayments 261,219 479,395 Income Received in Advance 1,390,549 1,038,353 4,338,411 4,316,837

Non‐Current College Grove Subdivision Profit Share 22(a) 12,458 12,893 12,458 12,893

SIGNIFICANT ACCOUNTING POLICIES Trade and other payables Trade and other payables (continued) Trade and other payables represent liabilities for goods the purchase of these goods and services. The amounts and services provided to the City prior to the end of the are unsecured, are recognised as a current liability and are financial year that are unpaid and arise when the City normally paid within 30 days of recognition. becomes obliged to make future payments in respect of

Page 44 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

16. INFORMATION ON BORROWINGS 2019 2018 $$ (a) Borrowings Current 2,196,043 2,210,963 Non‐current 12,333,717 12,893,639 14,529,760 15,104,602

(b) Loan Principal and Interest Repayments

Interest Principal New Principal Repayments Principal 30‐Jun‐19 Interest Repayments Institution Rate 01‐Jul‐18 Loans Actual Budget Actual Budget Actual Budget Particulars % $$$$$$$$ Community Amenities (1) 369 Urban Stormwater Drainage WATC 3.46 1,168,848 ‐ 150,295 150,295 1,018,553 1,018,553 47,035 47,074 (1) 379 Public Amenities WATC 2.91 182,499 ‐ 18,014 18,014 164,484 164,484 6,425 6,427 Sub Total 1,351,346 ‐ 168,309 168,309 1,183,037 1,183,037 53,460 53,501 Recreation and Culture * (1) 346 Bunbury Bowling Club WATC 5.62 10,137 ‐ 10,137 10,137 ‐ ‐ 507 528 (1) 351 SWSC Heating, Filtration and Gas WATC 5.61 81,509 ‐ 81,509 81,509 ‐ ‐ 4,098 4,182 (1) 362 Bunbury Entertainment Centre Expansion WATC 4.36 2,815,119 ‐ 419,830 419,830 2,395,289 2,395,289 133,658 136,922 (1) 365 Hay Park South Multi Sports Pavilion WATC 3.46 936,548 ‐ 120,425 120,425 816,123 816,123 37,687 37,719 (1) 366 Hands Oval Upgrade WATC 3.96 746,450 ‐ 137,817 137,817 608,633 608,633 33,214 33,953 (1) 367 Glen Iris Skate Park WATC 4.36 165,867 ‐ 24,737 24,737 141,131 141,131 7,875 8,067 (1) 372 Hay Park Sports Pavilion WATC 2.68 267,142 ‐ 30,365 30,365 236,776 236,776 8,771 8,775 (1) 373 Bunbury Museum & Heritage WATC 2.91 267,360 ‐ 26,391 26,391 240,969 240,969 9,413 9,415 * (1) 380 Bunbury Bowling Club WATC 2.55 69,253 ‐ 7,395 7,395 61,858 61,858 2,182 2,191 (1) 382 Stirling Street Arts Centre WATC 2.43 ‐ 900,000 ‐ ‐ 900,000 900,000 190 ‐ * (1) 384 Bunbury Bowling Club WATC 3.07 ‐ 90,000 3,879 3,835 86,121 86,165 1,955 1,800 * (1) 385 Bunbury and Districts Hockey Club WATC 1.99 ‐ 150,000 ‐ ‐ 150,000 150,000 253 ‐ Sub Total 5,359,385 1,140,000 862,484 862,440 5,636,901 5,636,945 239,802 243,552

Page 45 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

16. INFORMATION ON BORROWINGS (continued)

(b) Loan Principal and Interest Repayments (continued)

Interest Principal New Principal RepaymentsPrincipal 30‐Jun‐19 Interest Repayments Institution Rate 01‐Jul‐18 Loans Actual Budget Actual Budget Actual Budget Particulars % $$$$$$$$ Transport (1) 350 Kerbside Parking Meters WATC 6.00 287,325 ‐ 139,417 139,417 147,908 147,908 17,341 17,610 (1) 355 Road and Path Construction WATC 5.61 167,803 ‐ 167,803 167,803 ‐ ‐ 8,436 8,611 (1) 363 Roadworks and Path Construction WATC 3.96 743,156 ‐ 137,209 137,209 605,947 605,947 33,067 33,803 (1) 364 Cobblestone Drive Car Park WATC 3.96 164,658 ‐ 30,401 30,401 134,257 134,257 7,327 7,490 (1) 368 Path and Road Construction WATC 3.46 735,124 ‐ 94,525 94,525 640,599 640,599 29,582 29,607 (1) 370 Airport Upgrades WATC 3.46 179,370 ‐ 23,064 23,064 156,306 156,306 7,218 7,224 (1) 378 Roadworks and Path Construction WATC 2.91 711,744 ‐ 70,256 70,256 641,488 641,488 25,059 25,064 (1) 383 Road Construction WATC 2.43 ‐ 500,000 ‐ ‐ 500,000 500,000 105 ‐ Sub Total 2,989,181 500,000 662,676 662,676 2,826,505 2,826,505 128,134 129,409 Other Property and Services (2) 319 Civic Administration Building CBA 6.48 2,151,095 ‐ 139,348 139,348 2,011,747 2,011,747 137,253 137,253 (1) 329 Civic Administration Building WATC 5.82 253,595 ‐ 123,161 123,161 130,433 130,433 14,941 15,349 (1) 381 Depot Construction WATC 3.21 3,000,000 ‐ 258,863 257,773 2,741,137 2,742,227 114,726 117,444 Sub Total 5,404,690 ‐ 521,373 520,283 4,883,317 4,884,407 266,921 270,046

TOTAL 15,104,602 1,640,000 2,214,842 2,213,708 14,529,760 14,530,894 688,317 696,508 (1) WA Treasury Corporation (2) Commonwealth Bank of Australia * Self supporting loans are financed by payments from third parties. These are shown in Note 9 as other financial assets at amortised cost. All other loan repayments were financed by general purpose revenue. Total Interest 2018/19 Actual 688,317 Accrued (5,140) 683,177

Page 46 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

16. INFORMATION ON BORROWINGS (continued)

(c) New Borrowings ‐ 2018/19 Amount Borrowed Institution Loan Term Total Interest Amount Used Balance Actual Budget Type (Years) Interest & Rate * Actual Budget Unspent Particulars / Purpose $ $ Charges $ % $ $ $

Recreation and Culture 374 Water Playground ‐ 1,000,000 WATC Debenture 10 ‐ 1,000,000 ‐ 382 Stirling Street Arts Centre 900,000 900,000 WATC Debenture 10 119,204 3.13 132,285 900,000 767,715 384 Bunbury Bowling Club S/S 90,000 90,000 WATC Debenture 10 15,204 3.77 90,000 90,000 ‐ 385 Bunbury & Districts Hockey S/S 150,000 150,000 WATC Debenture 5 8,331 2.69 150,000 150,000 ‐

Transport 383 Road Construction 500,000 500,000 WATC Debenture 10 66,225 3.13 500,000 500,000 ‐

1,640,000 2,640,000 208,964 872,285 2,640,000 767,715

Loans 374 was not required during the 2018/19 financial year. * Inclusive of Government Guarantee Fee ‐ currently 0.70% pa

(d) Unspent Borrowings Balance Borrowed Expended Balance 1‐Jul‐18 During Year During Year 30‐Jun‐19 Particulars $$$$

382 Stirling Street Arts Centre ‐ 900,000 132,285 767,715

‐ 900,000 132,285 767,715

Page 47 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

16. INFORMATION ON BORROWINGS (continued)

(e) Overdraft

Council does not have an overdraft facility at balance date.

Undrawn Borrowing Facilities 2019 2018 Credit Standby Arrangements $ $ Credit card Limit 100,000 100,000 Credit card balance at balance date (1,327) (508) Total Amount of Credit Unused 98,673 99,492

Loan Facilities Loan facilities ‐ current 2,196,043 2,210,963 Loan facilities ‐ non‐current 12,333,717 12,893,639 Total Facilities in Use at Balance Date 14,529,760 15,104,602

Unused Loan Facilities in Use at Balance Date ‐ ‐

(f) Loan Guarantees provided by the City of Bunbury Council Resolution: 11 November 1997 (Resolution 18a) Loan Guarantee Provided to: Bunbury Regional Entertainment Centre Amount: $40,000 Amount Used as at 30 June 2019: Nil Financial Institution: Commonwealth Bank of Australia Purpose: Operating Overdraft account Council Resolution: 2 July 2013 (Resolution 184/13) Loan Guarantee Provided to: Community Home Care Inc. Amount: $550,000 Amount Used as at 30 June 2019: $334,764 Financial Institution: Bendigo and Adelaide Bank Purpose: Construction of new premises for Community Home Care

SIGNIFICANT ACCOUNTING POLICIES Financial liabilities Financial liabilities (continued) Financial liabilities are recognised at fair value when the transfer of non‐cash assets or liabilities assumed, is City becomes a party to the contractual provisions to the recognised in profit or loss. instrument. Borrowing costs Non‐derivative financial liabilities (excluding financial Borrowing costs are recognised as an expense when guarantees) are subsequently measured at amortised incurred except where they are directly attributable to the cost. Gains or losses are recognised in profit or loss. acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the Financial liabilities are derecognised where the related cost of the particular asset until such time as the asset is obligations are discharged, cancelled or expired. The subsequently ready for its intended use or sale. difference between the carrying amount of the financial liability extinguished or transferred to another party and Risk the fair value of the consideration paid, including the Information regarding exposure to risk can be found at Note 29(c).

Page 48 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

17. EMPLOYEE RELATED PROVISIONS

Provision for Provision for Provision for Annual Long Service Other Leave Leave Leave TOTAL $$$$ Opening Balance at 1 July 2018 Current provisions 1,879,016 1,896,344 68,048 3,843,409 Non‐current provisions 524,917 524,917 1,879,016 2,421,262 68,048 4,368,326

Additional provision 1,889,713 590,389 190,988 2,671,091 Amounts used (1,838,018) (357,417) (163,697) (2,359,131) Increase in the discounted amount arising because of time and the effect of any change in the discounted rate ‐ 32,204 ‐ 32,204 Balance at 30 June 2019 1,930,712 2,686,438 95,339 4,712,489

Comprises Current provisions 1,930,712 2,081,068 95,339 4,107,119 Non‐current provisions 605,370 605,370 1,930,712 2,686,438 95,339 4,712,489

2019 2018 $$ Amounts are expected to be settled on the following basis: Less than 12 months after the reporting date 2,589,429 2,368,245 More than 12 months from the reporting date 1,990,132 1,879,659 Expected reimbursements from other WA local governments 132,928 120,423 4,712,489 4,368,326

Timing of the payment of current leave liabilities is difficult to determine as it is dependent on future decisions of employees. Expected settlement timings are based on information obtained from employees and historical leave trends and assumes no events will occur to impact on these historical trends.

Page 49 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

17. EMPLOYEE RELATED PROVISIONS (continued)

SIGNIFICANT ACCOUNTING POLICIES Employee benefits Other long term employee benefits (continued) Short‐term employee benefits discounted at rates determined by reference to market Provisions is made for the City's obligations for short‐ yields at the end of the reporting period on government term employee benefits. Short‐term employee benefits bonds that have maturity dates that approximate the terms are benefits (other than termination benefits) that are of the obligations. Any remeasurements for changes in expected to be settled wholly before 12 months after the assumptions of obligations for other long‐term employee end of the annual reporting period in which the benefits are recognised in profit or loss in the periods in employees render the related service, including wages, which the changes occur. salaries and sick leave. Short‐term employee benefits are measured at the (undiscounted) amounts expected to be The City's obligations for long‐term employee benefits are paid when the obligation is settled. presented as non‐current provisions in its statement of financial position, except where the City does not have an The City's obligations for short‐term employee benefits unconditional right to defer settlement for at least 12 such as wages, salaries and sick leave are recognised as a months after the end of the reporting period, in which case part of current trade and other payables in the statement the obligations are presented as current provisions. of financial position. Other long‐term employee benefits Provisions The City's obligations for employees' annual leave and Provisions are recognised when the City has a present legal long service leave entitlements are recognised as or constructive obligation, as a result of past events, for provisions in the statement of financial position. which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Long‐term employee benefits are measured at the present value of the expected future payments to be Provisions are measured using the best estimate of the made to employees. Expected future payments amounts required to settle the obligation at the end of the incorporate anticipated future wage and salary levels, reporting period. durations of service and employee departures and are

Page 50 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

18. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows: 2019 2018 $$

Cash and Cash Equivalents 37,760,294 36,315,127

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

Net Result (1,743,854) 6,402,382

Non‐cash flows in Net Result: Depreciation 14,114,759 14,225,341 (Profit)/Loss on Sale of Asset 4,075,365 (1,494,700) Loss on Revaluation of Fixed Assets 99,924 241,175 Changes in assets and liabilities: (Increase)/Decrease in Receivables (298,409) 198,985 (Increase)/Decrease in Inventories (33,813) (5,651) Increase/(Decrease) in Payables 21,138 (146,362) Increase/(Decrease) in Employee Provisions 344,163 271,214 Grants, Contributions for the Development of Assets (7,047,657) (6,985,214) Recognition of Investment in LG House (140,137) ‐ Net Cash from Operating Activities 9,391,480 12,707,171

19. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY 2019 2018 $$ General Purpose Funding 1,885,257 2,160 Governance 12,329,007 12,703,686 Law, Order and Public Safety 6,807,709 6,694,297 Health 2,771,338 2,697,384 Education and Welfare 3,960,617 4,044,155 Community Amenities 74,855,387 73,168,038 Recreation and Culture 218,017,429 223,010,416 Transport 219,608,146 224,331,349 Economic Services 13,878,498 11,274,042 Other Property and Services 23,292,127 26,638,486 Unallocated 15,402,113 17,232,051 592,807,627 601,796,066

Page 51 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

20. CONTINGENT LIABILITIES

(a) Contaminated Sites In compliance with the Contaminated Sites Act 2003 Section 11 , the City has listed sites to be possible sources of contamination. Details of those sites are: * Nuytsia Ave * ECU Land * Donaldson Park * Jaycee Park * Jarvis St * McCombe Rd * Lot 70 Winthrop Ave * Lot 9000 Bussell Hwy * Robertson Dve * Mangles St * Queens Gardens * Clay Target Club * Stanley Rd * Stirling Street Arts Centre * Austral Bricks Landfill * Big Swamp POS * Marlston Hill * Bunbury Cemetery * Koombana Dve * Bunbury Airport * Pioneer Park Cemetery * Molloy St * Bunbury Hospital * Hay Park * Turkey Point * Rawling Rd Until the City conducts an investigation to determine the presence and scope of contamination, assess the risk, and agree with the Department of Water and Environmental Regulation on the need and criteria for remediation of a risk based approach, the City is unable to estimate the potentials costs associated with remediation of these sites. This approach is consistent with the Department of Water and Environmental Regulation Guidelines.

(b) Aluminium Composite Panels The Department of Mines, Industry Regulation and Safety (DMIRS) have been auditing public sector and local government agencies with buildings vested in their control regarding the risk associated with potentially combustible aluminium composite panels. As part of this investigation, the Department has identified buildings that require remediation to remove the hazard. Work is being undertaken to assess remediation costs, however the cost is not able to be reliably estimated at this point in time.

21. LEASING AND CAPITAL COMMITMENTS

(a) Operating Lease Commitments Non‐cancellable operating lease contracted for but not capitalised in the accounts. 2019 2018 Payable: $$ ‐ not later than one year 153,552 166,704 ‐ later than one year but not later than five years 253,975 271,885 407,527 438,589

SIGNIFICANT ACCOUNTING POLICIES Leases Leases (continued) Leases of fixed assets where substantially all the risks and Leased assets are depreciated on a straight line basis over benefits incidental to the ownership of the asset, but the shorter of their estimated useful lives or the lease term. legal ownership, are transferred to the City, are classified as finance leases. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as Finance leases are capitalised recording an asset and a expenses on a straight line basis over the lease term. liability at the lower of the fair value of the leased property or the present value of the minimum lease Lease incentives under operating leases are recognised as a payments, including any guaranteed residual values. liability and amortised on a straight line basis over the life of Lease payments are allocated between the reduction of the lease term. the lease liability and the lease interest expense for the period.

Page 52 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

21. CAPITAL AND LEASING COMMITMENTS (continued)

(b) Capital Expenditure Commitments The City of Bunbury has the following capital expenditure commitments contracted for as at 30 June 2019 which have not been recognised as a liability in the Statement of Financial Position:

2019 2018 Contracted for: $$ Replace waste vehicles and plant 2,173,905 ‐ Redevelop Stirling Street Arts Centre 2,089,491 41,208 Replace corporate heavy plant 659,140 ‐ Renew foreshore marine walls ‐ Leschenault Inlet 211,680 ‐ Renew and improve drainage (Brockman Park) 111,611 ‐ Implement CCTV CBD Network Stage 5 107,795 ‐ Renew Bunbury Wildlife Park buildings 93,965 ‐ Cultural Precinct 35,409 35,409 Install outdoor digital screens at Bunbury Regional Art Gallery 25,468 ‐ Infrastructure development works at Lot 3002 Lyons Cove 21,352 ‐ Refurbish City Facilities changerooms and public conveniences 20,061 ‐ Upgrade South West Sports Centre leisure facility software 19,130 ‐ Purchase Lot 21 Wellington Street (South's) ‐ 2,309,091 Construct new depot, Sutherland Way ‐ 630,550 Horseshoe Lake catchment stormwater improvements ‐ 407,555 Koombana Bay Foreshore ‐ 158,846 Renew Pool Blankets at South West Sports Centre ‐ 134,490 Reconstruct pavement, Halifax Drive ‐ 84,553 Replace bore pumps ‐ 83,449 Remove liner and tile SWSC leisure pool ‐ 67,773 Replace Wyalup / Rocky Point playground equipment ‐ 33,503 Construct helipad at Bunbury Airport ‐ 23,472 Repair jetties ‐ 10,820

5,569,008 4,020,719 Payable: ‐ not later than one year 5,569,008 4,020,719 ‐ later than one year but not later than two years ‐ ‐

Page 53 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

22. JOINT VENTURE ARRANGEMENTS

(a) Land Development Agreements

Under the Original Joint Venture Agreement, the City and the Department of Primary Industries and Regional Development entered into a joint venture for the development, subdivision and sale of certain land in College Grove, Bunbury. The Original Joint Venture Agreement operated for approximately ten (10) years with the City having a 36.33% equity and the Department of Primary Industries and Regional Development having a 63.67% equity in the subdivision.

A Second Joint Venture Agreement between Landcorp, the City and the Minister on behalf of the State was subsequently entered into for the development, subdivision and sale of additional land in College Grove, Bunbury. The Second Joint Venture Agreement covered an area of land primarily being the southern portion of the area of land covered by the Original Joint Venture Agreement.

It was intended by the parties that the Original Joint Venture Agreement would be terminated when the Second Joint Venture Agreement was entered into but this did not occur because some land covered by the Original Joint Venture Agreement had not been disposed of by the time the Second Joint Venture Agreement was entered into by the parties.

Due to part of the land comprised in the Second Joint Venture Agreement being ceded as Regional Open Space, as part of the proclamation of the Greater Bunbury Region Scheme and commitments made by the State Government that it would not undertake further development in College Grove, the development potential of the land comprised in the Second Joint Venture Agreement was reduced. The State Government provided in lieu of the reduced area of the College Grove Subdivision, alternate land for development.

In an agreement dated 31 October 2013 the parties agreed to terminate the Second Joint Venture Agreement so as to remove Landcorp from any further involvement, with the intent that the State Government and the City will continue to work together to achieve the remaining outcomes under the Original Joint Venture Agreement and the Second Joint Venture Agreement by entering into a new Amended Joint Venture Agreement. The Amended Joint Venture Agreement also terminates the Original Joint Venture Agreement and compensates the City for its equity in the Second Joint Venture by the transfer of freehold land to the City.

Under the Amended College Grove Joint Venture Agreement the City of Bunbury has a one third (33.33%) equity in the subdivision and the Department of Primary Industries and Regional Development two thirds (66.67%) equity in the subdivision. The City of Bunbury is the appointed manager of the subdivision. The funds originally held in the College Grove Land subdivision Reserve Account represented proceeds from sales to date less development costs and have now been transferred to the Amended College Grove Joint Venture Reserve to provide for the funding of future stages of the subdivision on behalf of the joint venture partners, eliminating the need to utilise borrowed funds.

After development costs and management fees are deducted from surplus income, profit on the subdivision will be distributed to the joint venture partners in proportion to their equities. No dividends were declared during 2018/19.

The Department of Primary Industries and Regional Development and the City have also entered into a Financial Assistance Agreement for $2.8M to facilitate the City procuring the construction of the extension of Somerville Drive, College Grove through to an intersection with Robertson Drive, College Grove to be repaid as part of the Amended Joint Venture Agreement from future land sales.

Page 54 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

22. JOINT VENTURE ARRANGEMENTS (continued)

(a) Land Development Agreements (continued)

At 30 June 2019 the undistributed profits of the subdivision, which are held in Amended College Grove Joint Venture Reserve amount to: 2019 2018 NOTE $$ Dept of Primary Industries & Regional Development 15 63.67% 12,458 * 12,893 * City of Bunbury 36.33% 14,996 15,214 4 27,454 28,107

*Included as a non‐creditor ‐ Refer Note 15

The assets and liabilities associated with this joint venture are: Current Assets Investments 27,454 28,107 Total Assets 27,454 28,107

Current Liabilities ‐ ‐ Total Liabilities ‐ ‐

The income and expenses associated with this joint venture are: Statement of Comprehensive Income Other Revenue 797 924 Other Expenditure (1,450) (6,583) Net Result for the Period (653) (5,659)

Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Changes in Asset Revaluation Surplus ‐ ‐ Total Other Comprehensive Income for the Period ‐ ‐ Total Comprehensive Income for the Period (653) (5,659)

(b) Controlled Entity

The City of Bunbury operates the Bunbury Harvey Regional Council in conjunction with the Shire of Harvey. The Regional Council was constituted with the City of Bunbury having 89.6% interest and the Shire of Harvey having 10.4% interest.

Fees and Charges Waste disposal fees payable by the City to the Bunbury Harvey Regional Council and reimbursements by the Bunbury Harvey Regional Council to the City for accounting and payroll services are included in the financial statements.

Equity in Joint Venture 2019 2018 $$ City of Bunbury 89.6% 8,185,221 8,708,278 Shire of Harvey 10.4% 950,070 1,010,782 9,135,291 9,719,060

Page 55 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

22. JOINT VENTURE ARRANGEMENTS (continued)

(b) Controlled Entity (continued)

Consolidated financial statements have not been prepared because they do not show a materially different position to that of the City of Bunbury due to the significant site rehabilitation costs expected with the post closure of the tip site. The City's equity in the joint venture is not considered material and therefore does not form part of the financial statements.

The assets and liabilities associated with this controlled entity are: 2019 2018 NOTE $$ Current Assets 4,363,834 5,702,569 Non‐Current Assets 5,188,616 4,719,505 Total Assets 9,552,450 10,422,074

Current Liabilities 410,505 669,080 Non‐Current Liabilities 6,654 33,934 Total Liabilities 417,159 703,014

Net Assets 9,135,291 9,719,060

The income and expenses associated with this controlled entity are: Statement of Comprehensive Income Revenue 3,865,870 3,880,750 Operating Expenses (4,449,639) (4,850,483) Net Result for the Period (583,769) (969,733)

Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Changes in Asset Revaluation Surplus ‐ (61,222) Total Other Comprehensive Income for the Period ‐ (61,222)

Total Comprehensive Income for the Period (583,769) (1,030,955)

SIGNIFICANT ACCOUNTING POLICIES Interests in Joint Ventures Interests in Joint Ventures (continued) Joint arrangements represent the contractual sharing of Joint venture operations represent arrangements whereby control between parties in a business where unanimous joint operators maintain direct interests in each asset and decisions about relevant activities are required. exposure to each liability of the arrangement. The City's interest in the assets, liabilities, revenue and expenses of Separate joint arrangements providing joint ventures joint operations are included in the respective line items of with an interest to net assets are classified as a joint the financial statements. venture and accounted for using the equity method. The equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post‐acquisition change in the City's share of net assets of the associated. In addition, the City's share of the profit or loss of the associate is included in the City's profit or loss.

Page 56 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

23. RELATED PARTY TRANSACTIONS

Elected Members Remuneration 2019 2019 2018 The following fees, expenses and allowances were paid to Actual Budget Actual council members and/or the mayor. $$$

Councillors Allowance 275,000 275,000 322,077 Mayoral Allowance 91,000 91,000 61,000 Deputy Mayoral Allowance 15,250 15,250 14,857 Telecommunications Allowance 42,000 42,000 44,388 Travel and Accommodation 3,322 14,000 3,322 426,572 437,250 445,643

Key Management Personnel (KMP) Compensation Disclosure

The total remuneration paid to KMP of the City during the 2019 2018 year are as follows: $$

Short‐term employee benefits 899,110 798,096 Post‐employment benefits 80,805 87,040 Other long‐term benefits 20,435 31,386 1,000,350 916,522

Short‐term employee benefits These amounts include all salary, fringe benefits, cash bonuses and annual leave accrued awarded to KMP except for details in respect to fees and benefits paid to elected members which may be found above. Post‐employment benefits These amounts are the current‐year's estimated cost of providing for the City's superannuation contributions made during the year. Other long‐term benefits These amounts represent long service benefits accruing during the year.

Termination benefits These amounts represent termination benefits paid to KMP (Note: May or may not be applicable in any given year).

Transactions with Related Parties

Transactions between related parties and the City are on normal commercial terms and conditions, no more favourable than those available to other parties, unless otherwise stated.

Page 57 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

23. RELATED PARTY TRANSACTIONS (continued)

Transactions with Related Parties (continued) 2019 2018 The following transactions occurred with related parties: $$ Associated Companies / Individuals: Sale of goods and services1 1,343,232 145,737 Purchase of goods and services2 (719,786) (739,157) Amounts Outstanding from Related Parties: Trade and other receivables ‐ 10,542 Amounts Payable to Related Parties: Trade and other payables (45,464) (52,624)

Note: (1) Sale of goods and services The majority of this is for the sale of Lot 33 Strickland Street Drainage Reserve ($1.19M), with the balance mainly being for accounting and payroll services provided to the Bunbury‐Harvey Regional Council.

(2) Purchase of goods and services This mainly includes normal commercial transactions for the disposal of waste received by the Bunbury‐Harvey Regional Council.

The City's main related parties are as follows:

i. Key management personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any elected member, are considered key management personnel. ii. Entities subject to significant influence by the City Any entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity which holds significant influence. Significant influence may be gained by share ownership, statute or agreement. iii. Joint venture entities accounts for under the equity method The City has two joint venture arrangements, one with Bunbury‐Harvey Regional Council (89.60% equity holding) and one with the Department of Primary Industries and Regional Development (36.33% equity holding). For details of interest held in joint venture arrangements, refer Note 22.

24. MAJOR LAND TRANSACTIONS

There were no major land transactions in the 2018/19 financial year.

25. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Council did not participate in any trading undertakings or major trading undertakings during the 2018/19 financial year.

Page 58 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

26. RATING INFORMATION

(a) Rates Rate in Number 2018/19 2018/19 2018/19 2018/19 2018/19 2018/19 2018/19 2018/19 2018/19 2017/18 $ of Actual Rateable Actual Rate Actual Interim Actual Back Actual Total Budget Rate Budget Budget Back Budget Total Actual Total RATE TYPE (cents) Properties Value ($) Revenue ($) Rates ($) Rates ($) Revenue ($) Revenue ($) Interims ($) Rates ($) Revenue ($) Revenue ($)

General rate Gross rental valuations General 9.3510 13,656 375,638,078 35,125,920 71,242 8,730 35,205,891 35,125,920 80,000 ‐ 35,205,920 34,071,510 Sub ‐ Total 13,656 375,638,078 35,125,920 71,242 8,730 35,205,891 35,125,920 80,000 ‐ 35,205,920 34,071,510

Minimum $

Minimum payment 1,164 2,764 27,277,609 3,217,296 ‐ ‐ 3,217,296 3,217,296 ‐ ‐ 3,217,296 3,180,372 Sub ‐ Total 2,764 27,277,609 3,217,296 ‐ ‐ 3,217,296 3,217,296 ‐ ‐ 3,217,296 3,180,372

38,423,187 38,423,216 37,251,882

Concessions (refer Note 26(d)) (120,084) (120,084) (70,719)

Total amount raised from general rate 38,303,103 38,303,132 37,181,163

Specified Area Rate (Refer Note 26(b)) 46,446 46,031 45,768

TOTAL RATES 38,349,549 38,349,163 37,226,931

SIGNIFICANT ACCOUNTING POLICIES Rates Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates.

Page 59 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

26. RATING INFORMATION (continued)

(b) Specified Area Rate

Rate in Basis 2018/19 2018/19 2018/19 2018/19 2018/19 2017/18 $ of Actual Rateable Actual Rate Budget Rate Budget Rate Budget Rate Actual Total (cents) Rate Value ($) Revenue ($) Revenue ($) Revenue ($) Revenue ($) Revenue ($)

Pelican Point Grand Canal ‐ Rate 1.1520 GRV 4,099,110 47,222 46,031 47,222 47,222 45,861 ‐ Interim Rate (776) ‐ (776) (776) (93) 46,446 46,031 46,446 46,446 45,768

46,446 46,031 46,446 46,446 45,768

Pelican Point Grand Canal The rateable properties within the Grand Canals Specified Area Rate will be levied on a specified area rate for the purpose of raising funds to allow for the periodic dredging, clearing and maintenance of the canal waterways. The full amount raised in 2018/19 has been transferred to the Canal Management Reserve.

(c) Service Charges

No service charges were imposed in the reporting period.

(d) Discounts, Incentives, Concessions, & Write Offs

Incentives An incentive prize of $2,000 from the Commonwealth Bank of Australia is offered to encourage the early payment of rates. The following terms and conditions applied to the 2018/19 early payment of rates incentive prize:

1. The competition is open to ratepayers of the City of Bunbury who pay the full amount due as listed on their 2018/19 rates notice before 4:00pm, 7 September 2018. No responsibility is accepted for late, lost or misdirected payments.

2. There is one (1) prize to be given away being a $2,000 cash prize courtesy of the Commonwealth Bank of Australia.

3. Councillors and Employees of the City of Bunbury, properties that receive a rates exemption, and government agencies are not eligible to be included in the prize draw.

Page 60 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

26. RATING INFORMATION (continued)

(d) Discounts, Incentives, Concessions, & Write Offs (continued)

Concessions

Total Cost / Value Budget Cost / Value Type $ $ Rates ‐ Storage Units Concession 66,482 66,482 Rates ‐ TPS Heritage Concession 7,521 7,521 Rates ‐ Sporting Groups Concession 46,081 46,081 120,084 120,084

Storage Units To recognise the nature, purpose and size of storage units compared to other properties a concession of $511.40 per strata title storage unit, totalling $66,482 was granted to strata titled storage units. This concession was applied to 130 storage units.

The Town Planning Scheme No 7 defines "Storage" Unit in the following terms "premises used for the storage of goods, equipment, plant or materials". Further to this definition, the following criteria must be met:

Strata titled: ‐ Zoned "Industrial" under Town Planning Scheme No 7; ‐ Have no ablutions (waste water system) connected; ‐ Maximum area of 75m2

TPS Heritage Rates The City of Bunbury contains a significant collection of heritage asset having cultural heritage significance. To acknowledge and encourage conservation works of these properties a concession of 30% (up to a maximum of $1,000) on the general rates payable will be provided to eligible properties for a period of five years where works relating to the conservation of the cultural heritage significance of the property has been undertaken in accordance with the City's Local Planning Policy ‐ Rate Concession for Heritage Places. The total amount of TPS Heritage Rate Concessions in 2018/19 was $7,521.

Sporting and Community Leases and Licenses The City acknowledges the societal and economic value sporting and community groups provide to the city. Council is committed to supporting sporting and community groups that enter into lease or license arrangements with the City, to ensure they are affordable. To achieve this objective Council resolved to change the methodology for charging property leases and licences to sporting and community groups.

From the 2018‐19 financial year any sporting or community groups that have a lease or license arrangement with the City will not be charged a rental fee, and if they are required to pay rates, the City will reduce the amount of rates equal to the minimum rates in lieu of any rental fee.

The City will provide a rate concession being the difference between the Gross Rental Valuation calculated rates for the leased property and the minimum rate imposed by Council each year.

The total amount of Sporting and Community Leases and Licenses concessions in 2018/19 was $46,081.

Page 61 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

26. RATING INFORMATION (continued)

(d) Discounts, Incentives, Concessions, & Write Offs (continued)

Write‐Offs Total Cost / Value Budget Cost / Value Type Disc % $ $ Rates Small Balances Write‐Off 3,105 3,000 Sundry Debtors Write‐Off 1,675 ‐ Infringements Write‐Off 110,930 130,000 115,710 133,000

(e) Interest Charges & Instalments

Interest Admin Budgeted Rates Charge Revenue Revenue %$ $ $

Interest on Unpaid Rates 11.00% 221,721 155,000 Interest on Instalment Plans 5.50% 235,908 235,000 Interest on Deferred Pensioners 13,352 13,352 470,980 403,352

Charges on Instalment Plans 21.00 116,249 116,000 Direct Debit Fee 31.50 7,560 ‐ 123,809 116,000

594,789 519,352

Ratepayers had the option of paying rates in full, or in four equal instalments due on 7 September 2018, 7 November 2018, 7 January 2019 and 7 March 2019, or by direct debit over the rate instalment periods. Administration charges and interest applied to the final three instalments and direct debit options.

Page 62 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

27. RATE SETTING STATEMENT INFORMATION

2019 2019 2019 Budget (30 June 19 (30 June 2019 (1 July 2018 Carried Carried Brought NOTE Forward) Forward) Forward) $$$ (a) Non‐Cash Amounts Excluded from Operating Activities The following non‐cash revenue or expenditure has been excluded from amounts attributable to operating activities within the Rate Setting Statement in accordance with Financial Management Regulation 32.

Adjustments to Operating Activities Less: Profit on Asset Disposals 12(a) (813,923) (1,324,507) (5,809,523) Movement in Deferred Debtors 5 13,341 ‐ 25,808 Movement in Deferred Pensioner Rates 5 (75,500) ‐ (8,908) Increase in Self Supporting Loans 16(b) (240,000) (240,000) ‐ Movement in Employee Benefit Provisions (Non‐Current) 17 80,453 ‐ 75,398 Movement in College Grove Joint Venture 15 (436) 62,693 (3,773) Add: Loss on Disposal of Assets 12(a) 4,889,288 ‐ 4,314,823 Add: Depreciation on Assets 12(b) 14,114,759 14,013,112 14,225,341 Non‐Cash Amounts Excluded from Operating Activities 17,967,983 12,511,298 12,819,166

(b) Surplus/(Deficit) After Imposition of General Rates The following current assets and liabilities have been excluded from the net current assets used in the Rate Setting Statement in accordance with Financial Management Regulation 32 to agree to the surplus/(deficit) after imposition of general rates.

Surplus/(Deficit) 1 July 2018 Brought Forward Less: Reserves ‐ Restricted Cash 3 (26,405,796) (15,782,507) (27,077,985) Less: Financial Assets at Amortised Cost ‐ Self‐Supporting Loans 9(a) (44,345) (17,532) (17,532)

Add: Borrowings 16(a) 2,196,043 2,239,237 2,210,963 Total Adjustments to Net Current Assets (24,254,099) (13,560,802) (24,884,554)

Net Current Assets Used in the Rate Setting Statement Total Current Assets 40,973,397 24,474,278 39,244,271 Less: Total Current Liabilities (10,641,573) (10,505,469) (10,371,209) Less: Total Adjustments to Net Current Assets (24,254,099) (13,560,802) (24,884,554) Net Current Assets Used in the Rate Setting Statement 6,077,725 408,007 3,988,508

Page 63 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

28. EMPLOYEE INFORMATION

(a) Employees Remuneration

Set out below, in bands of $10,000, is the number of employees of the City of Bunbury entitled to an annual salary of $100,000 or more:

Salary Range 2019 2018 $100,000 ‐ $109,999 96 $110,000 ‐ $119,999 23 $120,000 ‐ $129,999 12 $130,000 ‐ $139,999 31 $140,000 ‐ $149,999 11 $150,000 ‐ $159,999 1‐ $160,000 ‐ $169,999 ‐1 $170,000 ‐ $179,999 11 $180,000 ‐ $189,999 1‐ $190,000 ‐ $199,999 1‐ $220,000 ‐ $229,999 ‐‐ $240,000 ‐ $249,999 ‐‐ $250,000 ‐ $259,999 ‐1 $260,000 ‐ $269,999 1‐

(b) Employee Numbers

The number of full‐time equivalent employees at balance date 291 302

Page 64 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

29. FINANCIAL RISK MANAGEMENT

This note explains the City's exposure to financial risks and how these risks could affect the City's future financial performance.

Risk Exposure arising from Measurement Management Market risk Long term borrowings at variable Sensitivity analysis Utilise fixed interest rate borrowings. ‐ interest rate rates. Cash and cash equivalents, trade Ageing analysis Diversification of bank deposits, credit limits. Investment Credit risk receivables, financial assets and debt Credit analysis policy. investments. Rolling cash flow Liquidity risk Borrowings and other liabilities Availability of committed credit lines and borrowing facilities. forecasts

The City 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 finance area identifies, evaluates and manages financial risks in close co‐operation with the operating divisions. Council have approved the overall risk management policy and provide policies on specific areas such as investment policy.

(a) Interest rate risk

Cash and cash equivalents

The City's main interest rate risk arises from cash and cash equivalents with variable interest rates, which exposes the City of cash flow interest rate risk. Short term overdraft facilities also have variable interest rates however these are repaid within 12 months, reducing the risk level to minimum.

Excess cash and cash equivalents are invested in fixed interest rate term deposits which do not expose the City to cash flow interest rate risk. Cash and cash equivalents required for working capital are held in variable interest rate accounts and non‐interest bearing accounts. Carrying amounts of cash and cash equivalents at the 30 June and the weighted average interest rate across all cash and cash equivalents and term deposits held disclosed as financial assets at amortised cost are reflected in the following table.

Page 65 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

29. FINANCIAL RISK MANAGEMENT (continued)

(a) Interest rate risk (continued) Weighted Average Carrying Fixed Variable Non Interest Interest Rate Amounts Interest Rate Interest Rate Bearing %$$$$ 2019 Cash and cash equivalents 2.16% 37,760,294 34,288,466 3,471,828 ‐

2018 Cash and cash equivalents 2.48% 36,315,127 30,979,477 5,335,650 ‐

Sensitivity Profit or loss is sensitive to higher/lower interest income from cash and cash equivalents as a result of changes in interest rates. 2019 2018 $$ Impact of a 1% movement in interest rates on profit and loss and equity(1) 377,603 363,151 Notes: (1) Holding all other variables constant

Borrowings Borrowings are subject to interest rate risk ‐ the risk that movements in interest rate could adversely affect funding costs. The City 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 City does not consider there to be any interest rate risk in relation to borrowings.

Page 66 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

29. FINANCIAL RISK MANAGEMENT (continued)

(b) Credit risk

Trade Receivables The City'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. The City manages this risk by monitoring outstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of the City to recover these debts as a secured charge over the land, that is, the land can be sold to recover the debt. The City 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.

The City has completed an assessment and determined no loss allowance is required for 30 June 2019.

Page 67 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

29. FINANCIAL RISK MANAGEMENT (continued)

(b) Credit risk (continued) More than 1 More than 2 More than 3 Current year past due years past due years past due Total 30 June 2019 Rates receivable Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 1,044,914 366,488 210,364 355,864 1,977,631 Loss allowance ‐ ‐ ‐ ‐ ‐

01 July 2018 Rates receivable Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 815,869 286,154 164,252 280,979 1,547,254 Loss allowance ‐ ‐ ‐ ‐ ‐

More than 30 More than 60 More than 90 Current days past due days past due days past due Total 30 June 2019 Sundry receivables and infringements Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 494,894 12,658 8,798 218,126 734,476 Loss allowance ‐ ‐ ‐ ‐ ‐

01 July 2018 Sundry receivables and infringements Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 386,920 84,213 12,829 314,840 798,802 Loss allowance ‐ ‐ ‐ ‐ ‐

Page 68 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

29. FINANCIAL RISK MANAGEMENT (continued)

(c) Liquidity risk

Payables and 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. The City 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 and disclosed in Note 16(e).

The contractual undiscounted cash flows of the City's payables and borrowings are set out in the liquidity table below. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

Due Due Due Total within between after Contractual Carrying 1 year 1 & 5 years 5 years cash flows values $$$$$ 2019 Payables 4,338,411 12,458 ‐ 4,350,868 4,350,868 Borrowings 2,196,043 8,074,448 4,259,269 14,529,760 14,529,760 6,534,454 8,086,906 4,259,269 18,880,628 18,880,628

2018 Payables 4,316,837 12,893 ‐ 4,329,730 4,329,730 Borrowings 2,210,963 7,736,725 5,156,913 15,104,602 15,104,602 6,527,800 7,749,619 5,156,913 19,434,332 19,434,332

Page 69 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

30. TRUST FUNDS

(a) Cash Funds held in Trust

Funds held at balance date over which the City of Bunbury has no control and which are not included in the financial statements are as follows:

Balance Muni Funds Amounts Amounts Balance 1‐Jul‐18 Reclassified Received Paid 30‐Jun‐19 $$$$$

Glen Iris Structure Plan 1,460,955 ‐ 71,433 ‐ 1,532,388 Donations and Grants 2,473 ‐ ‐ ‐ 2,473 Unclaimed Monies 63,466 ‐ 3,970 (692) 66,745 Fees Collected 20,849 ‐ 219,008 (213,731) 26,126 Miscellaneous 6,666 ‐ 80 (330) 6,416 Artist Payments 2,702 ‐ 26,490 (26,255) 2,937 Tuart Brook Local Structure Plan 154,752 ‐ 4,092 ‐ 158,844 Regional Waste Transfer Station ‐ ‐ ‐ ‐ ‐ Planning and Development Act s152 ‐ 678,325 96,239 ‐ 774,564 Mosquito Control (CLAG) ‐ 21,782 38,139 (27,376) 32,545 Setagaya Student Payments ‐ ‐ 58,859 (20,315) 38,544 SW Emergency Management ‐ 5,540 ‐ ‐ 5,540 Security Camera Contributions ‐ 5,000 ‐ ‐ 5,000 Brookfield Rail Agreement 27,246 ‐ 14,209 ‐ 41,455 1,739,109 710,648 532,518 (288,698) 2,693,577

(b) Assets held in Trust

The City of Bunbury holds in trust various equipment, furniture and fittings for charitable purposes as listed in the Deed of Declaration of Charitable Trust: Bunbury Regional Art Gallery, dated 15th September 2014.

31. EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD

There were no material events after 30 June 2019 that require inclusion in the notes to the Financial Statements.

Page 70 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

32. INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING STANDARDS

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

Whilst many reflected consequential changes associated with the amendment of existing standards, the only new standard with material application is AASB 9 Financial Instruments .

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual reporting period beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

There was no effect of adopting AASB 9.

Page 71 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

33. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS FOR APPLICATION IN FUTURE YEARS

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

This note explains management's assessment of the new and amended pronouncements that are relevant to the City, the impact of the adoption of AASB 15 Revenue from Contracts with Customers , AASB 16 Leases and AASB 1058 Income for Not‐for‐Profit Entities . These standards are applicable to future reporting periods and have not yet been adopted.

(a) Revenue from Contracts with Customers

The City will adopt AASB 15 Revenue from Contracts with Customers (issued December 2014) on 1 July 2019 resulting in changes in accounting policies. In accordance with the transition provisions AASB 15, the City will adopt the new rules retrospectively with the cumulative effect of initially applying these riles recognised on 1 July 2019. In summary, the following adjustments are expected to be made to the amounts recognised in the balance sheet at the date of initial application (1 July 2019):

AASB 118 AASB 15 carrying amount carrying amount NOTE 30 June 2019 Reclassification 01 July 2019 33(d) $$$ Contract liabilities ‐ current Unspent grants, contributions and reimbursements ‐ 4,321,888 4,321,888 Adjustment to retained surplus ‐ adoption of AASB 15 (4,321,888)

(b) Leases The City has adopted AASB16 from 2019.

On adoption of AASB 16, the City will recognise lease liabilities in relation to leases which had previously been classified as an 'operating lease' applying AASB 117. These lease liabilities will be measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate on 1 July 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 July 2019 is 5.97%.

NOTE 30 June 2019 $ Operating lease commitments disclosed as at 30 June 2019 21(a) 407,527 Lease liability recognised as at 1 July 2019, discounted using implicit interest rate within the lease agreements. (41,122) Right‐of‐use asset recognised as at 1 July 2019 366,405

Low‐value leases recognised on a straight‐line basis as an expense ‐

Page 72 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

33. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS FOR APPLICATION IN FUTURE YEARS (continued)

(b) Leases (continued)

On adoption of AASB 16, the City will recognise a right‐of‐use asset in relation to a lease which had previously been classified as an 'operating lease' applying AASB 117. This right‐of‐use asset is to be measured as if AASB 16 had been applied since its commencement date by the carrying amount but discounted using the lessee's incremental borrowing rate as on 1 July 2019. Property, plant and equipment increases by $366,405 on 1 July 2019 resulting in no impact on retained earnings on 1 July 2019.

On adoption of AASB 16 Leases (issued February 2016), for leases which had previously been classified as an 'operating lease' then applying AASB 117, the City is not required to make any adjustments on transition for leases for which the underlying asset is of low value. Assets for which the fair value as at the date of acquisition is under $5,000 are not recognised as an asset in accordance with Financial Management Regulation 17A (5) .

In applying AASB 16 for the first time, the City will use the following practical expedient permitted by the standard.

‐ The exclusion of initial direct costs from the measurement of the right‐of‐use asset at the date of initial application.

(c) Income For Not‐For‐Profit Entities

The City will adopt AASB 1058 Income for Not‐for‐Profit Entities (issued December 2016) on 1 July 2019 which will result in no changes in accounting policies as the City already recognises prepaid rates as a financial liability.

Prepaid rates are, until the taxable event for the rates has occurred, refundable at the request of the ratepayer. Therefore the rates received in advance give rise to a financial liability that is within the scope of AASB 9.

(d) Impact of changes to Retained Surplus

The impact on the City of the changes as at 1 July 2019 is as follows:

Adjustments 2019 NOTE $ $ Retained surplus ‐ 30 June 2019 217,066,282 Adjustment to retained surplus from adoption of AASB 15 33(a) (4,321,888) Adjustment to retained surplus from adoption of AASB 16 33(b) 366,405

Retained surplus ‐ 01 July 2019 (3,955,483) 213,110,799

Page 73 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

34. OTHER SIGNIFICANT ACCOUNTING POLICIES

a) Goods and services tax (GST) f) Superannuation Revenues, expenses and assets are recognised net of The City contributes to a number of Superannuation the amount of GST, except where the amount of GST Funds on behalf of employees. All funds to which the incurred is not recoverable from the Australian City contributes are defined contribution plans. Taxation Office (ATO). g) Fair value of assets and liabilities Receivables and payables are stated inclusive of GST Fair value is the price that the City would receive to receivable or payable. The net amount of GST sell the asset or would have to pay to transfer a recoverable from, or payable to, the ATO is included liability, in an orderly (i.e. unforced) transaction with receivables or payables in the statement of between independent, knowledgeable and willing financial position. market participants at the measurement date.

Cash flows are presented on a gross basis. The GST As fair value is a market‐based measure, the closest components of cash flows arising from investing or equivalent observable market pricing information is financing activities which are recoverable from, or used to determine fair value. Adjustments to market payable to, the ATO are presented as operating cash values may be made having regard to the flows. characteristics of the specific asset or liability. The fair values of assets that are not traded in an active market b) Current and non‐current classification are determined using one or more valuation The asset or liability is classified as current if it is techniques. These valuation techniques maximise, to expected to be settled within the next 12 months, the extent possible, the use of observable market being the City’s operational cycle. In the case of data. liabilities where the City does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability To the extent possible, market information is extracted is classified as current even if not expected to be from either the principal market for the asset or settled within the next 12 months. Inventories held liability (i.e. the market with the greatest volume and for trading are classified as current or non‐current level of activity for the asset or liability) or, in the based on the City's intentions to release for sale. absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the c) Rounding off figures receipts from the sale of the asset after taking into All figures shown in this annual financial report, other account transaction costs and transport costs). than a rate in the dollar, are rounded to the nearest dollar. Amounts are presented in Australian Dollars.

d) Comparative figures For non‐financial assets, the fair value measurement Where required, comparative figures have been also takes into account a market participant’s ability to adjusted to conform with changes in presentation for use the asset in its highest and best use or to sell it to the current financial year. another market participant that would use the asset in its highest and best use. When the City applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements that has a h) Fair value hierarchy material effect on the statement of financial position, AASB 13 requires the disclosure of fair value an additional (third) statement of financial position as information by level of the fair value hierarchy, which at the beginning of the preceding period in addition to categorises fair value measurement into one of three the minimum comparative financial statements is possible levels based on the lowest level that an input presented. that is significant to the measurement can be categorised into as follows: e) Budget comparative figures Unless otherwise stated, the budget comparative Level 1 figures shown in this annual financial report relate to Measurements based on quoted prices (unadjusted) in the current budget estimate for the relevant item of active markets for identical assets or liabilities that the disclosure. entity can access at the measurement date.

Page 74 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

34. OTHER SIGNIFICANT ACCOUNTING POLICIES (continued)

h) Fair value hierarchy (continued) h) Fair value hierarchy (continued) are developed using market data (such as publicly Level 2 available information on actual transactions) and Measurements based on inputs other than quoted reflect the assumptions that buyers and sellers would prices included in Level 1 that are observable for the generally use when pricing the asset or liability are asset or liability, either directly or indirectly. considered observable, whereas inputs for which market data is not available and therefore are Level 3 developed using the best information available about Measurements based on unobservable inputs for the such assumptions are considered unobservable. asset or liability.

The fair values of assets and liabilities that are not i) Impairment of assets traded in an active market are determined using one In accordance with Australian Accounting Standards or more valuation techniques. These valuation the City's cash generating non‐specialised assets, other techniques maximise, to the extent possible, the use of than inventories, are assessed at each reporting date observable market data. If all significant inputs to determine whether there is any indication they may required to measure fair value are observable, the be impaired. asset or liability is included in Level 2. If one or more Where such an indication exists, an impairment test is significant inputs are not based on observable market carried out on the asset by comparing the recoverable data, the asset or liability is included in Level 3. amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the Valuation techniques asset's carrying amount. The City selects a valuation technique that is appropriate in the circumstances and for which Any excess of the asset's carrying amount over its sufficient data is available to measure fair value. The recoverable amount is recognised immediately in availability of sufficient and relevant data primarily profit or loss, unless the asset is carried at a revalued depends on the specific characteristics of the asset or amount in accordance with another Standard (e.g. liability being measured. The valuation techniques AASB 116) whereby any impairment loss of a revalued selected by the City are consistent with one or more of asset is treated as a revaluation decrease in the following valuation approaches: accordance with that other Standard.

Market approach For non‐cash generating specialised assets that are Valuation techniques that use prices and other measured under the revaluation model ,such as roads, relevant information generated by market drains, public buildings and the like, no annual transactions for identical or similar assets or liabilities. assessment of impairment is required. Rather AASB 116.31 applies and revaluations need only be made Income approach with sufficient regulatory to ensure the carrying value Valuation techniques that convert estimated future does not differ materially from that which would be cash flows or income and expenses into a single determined using fair value at the ends of the discounted present value. reporting period. Cost approach Valuation techniques that reflect the current replacement cost of the service capacity of an asset.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the City gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that

Page 75 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

35. ACTIVITIES/PROGRAMS

City operations as disclosed in these financial statements encompass the following service orientated activities/programs.

GENERAL To collect revenue to allow for Rates, general purpose government grants and interest PURPOSE FUNDING the provision of services. revenue.

GOVERNANCE To provide a decision making Includes the activities of members of council and the process for the efficient administrative support available to the council for the allocation of scarce resources. provision of governance of the district. Other costs relate to the task of assisting elected members and ratepayers on matters which do not concern specific council services.

LAW, ORDER, AND To provide services to help Supervision and enforcement of various local laws relating PUBLIC SAFETY ensure a safer and to fire prevention, animal control and other aspects of environmentally conscious public safety including emergency services. community.

HEALTH To provide an operational Inspection of food outlets and their control, provision of framework for environmental meat inspection services, noise control and waste disposal and community health. compliance.

EDUCATION To provide services to Elderly person's activities and support, community services AND WELFARE disadvantaged persons, the planning, disabled persons, youth services, aboriginal issues, elderly, children and youth. Meal on Wheels centre, other welfare and voluntary persons.

COMMUNITY To provide services required by Refuse collection services, including recycling, greenwaste AMENITIES the community. and hardwaste. Administration of the Town Planning Scheme, public amenities and urban stormwater drainage works. Protection of the environment, coastline and waterways. Environmental planning.

RECREATION To establish and effectively Maintenance of halls, recreation and cultural facilities, AND CULTURE manage infrastructure and including sportsgrounds, parks, gardens, reserves, resource which will help the playgrounds and foreshore amenities. Maintenance of boat social wellbeing of ramps and jetties. Townscape works. Operation of the Libraries, South West Sports Centre, Bunbury Wildlife Park, Bunbury Regional Art Gallery, Bunbury Regional Entertainment Centre, Bunbury Museum and Heritage Centre and other cultural activities.

TRANSPORT To provide safe, effective and Construction and maintenance of roads, drainage, efficient transport services to footpaths, bridges and traffic signs. Maintenance of pump the community. stations and road verges, strategic planning for transport and traffic flows, street lighting and street cleaning, airport operation; parking control and car park maintenance.

ECONOMIC To help promote the City and its Tourism and area promotion, operation of the Visitor SERVICES economic well‐being. Centre, International relationship expenses, City marketing and economic development, implementation of building control, operation of plant nursery. OTHER PROPERTY To monitor and control Private works operation, plant repair, public works AND SERVICES council's overheads operating overhead, land acquisition (including town planning accounts. schemes) and subdivision development and sales.

Page 76 of 80 CITY OF BUNBURY NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019

36. FINANCIAL RATIOS

2019 2018 2017 Current ratio 1.527 1.297 1.246 Asset consumption ratio 0.567 0.601 0.621 Asset renewal funding ratio 0.956 0.943 0.743 Asset sustainability ratio 0.648 0.707 0.643 Debt service cover ratio 2.069 3.577 4.492 Operating surplus ratio (0.160) (0.010) (0.005) Own source revenue coverage ratio 0.827 0.953 0.948 The above ratios are calculated as follows: current assets minus restricted assets Current ratio current liabilities minus liabilities associated with restricted assets

depreciated replacement costs of assets Asset consumption ratio current replacement costs of depreciable assets

NPV of planning capital renewal over 10 years Asset renewal funding ratio NPV of required capital expenditure over 10 years

capital renewal and replacement expenditure Asset sustainability ratio depreciation expenses

annual operating surplus before interest Debt service cover ratio and depreciation principal and interest

operating revenue minus operating expenses Operating surplus ratio own source operating revenue

own source operating revenue Own source revenue coverage ratio operating expenses Notes: The Asset Sustainability Ratio for 2019 has been distorted due to the purchase of replacement waste vehicles and plant being delayed during the year to enable the review of City Waste Services to be completed. The purchases valued at $2,173,905 were committed but were not able to be delivered prior to the end of the financial year and were therefore excluded from capital replacement expenditure in 2019. If this expenditure was included the ratio would have been: Asset Sustainability Ratio 0.802

37. CHANGES IN ACCOUNTING POLICY

A new accounting policy was implemented in respect to Landscaping and Street Trees effective 1 July 2018. These are no longer recognised as a grouped asset and individual assets less than $5,000 have been written off. This has resulted in a $15,383,693 write‐down which has been recorded retrospectively as at 1 July 2017.

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4 Stephen Street, Bunbury WA 6230 PO Box 21 , Bunbury WA 6231 T: (08) 9792 7000 TTY: 13 36 77 F: (08) 9792 7184 E: [email protected] www.bunbury.wa.gov.au