Annual Report 2013 - 2014
1 CONTENTS
3. City of Kalgoorlie - Boulder Mission & Vision Statement
4. Mayor & Councillors
5. Mayor’s Report
7. Executive Report
8. Executive Services Directorate
10. Community Services Report
14. Development Services Report
18. Engineering Report
20. Corporate Services Report
26. National Competition Act Compliance
27. Financial Report
98. Independent Auditor Report
2 MISSION STATEMENT
The City of Kalgoorlie-Boulder will strive to ensure that we are a dynamic regional centre with a proud history and a high quality of life. We are dedicated to working with the community to achieve the best possible services.
VISION STATEMENT
The City of Kalgoorlie-Boulder has a vision to be a sustainable regional city of the future.
Underpinned by the following: • we will be a clean and green city • people will call Kalgoorlie-Boulder home • there will be adequate facilities and services for everyone • we will encourage and support economic development and diversification • we will be a quality employer • we will project a positive image at all times, demonstrating that we are a sustainable regional city of the future, with a ‘can do’ approach
3 MAYOR & COUNCILLORS
City of Kalgoorlie - Boulder Elected Members 2013/14: Mayor Ron Yuryevich AM RFD, Deputy Mayor Allan Pendal, Cr Deborah Botica, Cr Lisa Malicky, Cr Beth Richardson, Cr Laurie Ayers, Cr Amanda Cruse, Cr Wayne Johnson, Cr Mandy Reidy, Cr Mick McKay, Cr Kyran O’Donnell, Cr Gary Brown, Cr Suzie Williams
4 MAYOR’S REPORT
Mayor Ron Yuryevich
Once again the City has had a very productive year, with 2013/14 seeing some major projects really moving forward.
Many of you would have seen the works underway in Burt Street with the City undertaking the restoration of the facades, parapets and verandas of many of the shops in Burt Street. The Burt Street Heritage Precinct project will see the transformation of Burt Street into a very visually appealing street with great Mayor potential. Along with this project, the City completed the Burt Street Community Ronald Yuryevich AM RFD Hall, which is the former Goldfields War Museum. This building is now home to a number of community groups with the anchor group being the Volunteer Centre. The War Museum is being revamped and relocated into the old medical rooms at the Boulder Town Hall. These projects will enhance the vibrancy of Burt Street. The City also proposes to work with the businesses in Burt Street to improve their financial sustainability and to also look at creating an arts precinct in Burt Street. All of this should see Burt Street become a great destination for residents and tourists alike.
One of the other major projects being worked on is the Ray Finlayson Sporting complex, which is off Marshall Street adjoining DR Morrison Oval. The facility will cater for equestrian, cricket, soccer, rugby and squash. It is anticipated that the final stage of this project, being the clubrooms will be completed late 2015, early 2016. The equestrian facilities are already in use and the City has received feedback that they are of the highest standard. The standard of the rest of the complex should also be of “hallmark” standard, which means we could host a Perth Glory game or a WACA game.
As I have mentioned above, the City prides itself on providing sporting facilities of the highest standard, and the Kalgoorlie Golf Course meets this criteria. Once again in 2013 the City hosted the PGA Goldfields Open and also won the Regional Golf Facility of the Year and Regional Golf Course of the Year. It is one of the highest rated courses in WA and regularly receives good media coverage on the uniqueness over other courses and the high standard of presentation. There is no doubt that the Kalgoorlie Golf Course has added another dimension to the City’s tourism product and media exposure. If you haven’t been to the golf course to have a look, then I encourage you to take the opportunity to have a visit.
The City is seeking funds from the RfR Goldfields Revitalisation Fund to build a community facility at the golf course, which will include a café/bar, community hall and meeting rooms, kid’s indoor playground, crèche and convention facilities. It is anticipated that if this is built it will attract a resort developer operator to construct a 120 room resort.
Every year the City’s events calendar grows and 2013/14 was no different. The existing events have been enhanced and new programs and events have introduced into the Town Halls. The Kids Fest has proven to be an enormous success with over 10,000 mums, dads and kids attending over the 2 days. Although this is a City event, it wouldn’t be possible without the assistance of all the community groups and volunteers who help out over the 2 days. If you haven’t been to some of our free family orientated events, then I suggest you take the opportunity when our next event is on.
5 MAYOR’S REPORT The City has entered into an agreement to manage the Goldfields Arts Centre on behalf of the State Government. The City proposes to build up the program and enhance what the GAC brings to the City. It is still early days and the City is working on a business plan to achieve this objective. I encourage everyone to support the GAC when shows come to the City.
I would like to thank all of the City staff, led by CEO Don Burnett, for their hard work for the last 12 months. I would also like to thank my fellow elected members for their tireless contributions to the City. In October 2013 we had an election, which saw the re’election of Allan Pendal, Deborah Botica, Laurie Ayers and Amanda Cruse. Suzie Williams returned as a Councillor, along with newly elected Kyran O’Donnell and Gary Brown. Nat James and Anne Petz completed their terms as Councillor’s and I would like to put on record my appreciation for their efforts as Councillors and for the work they put into the community.
Ron Yuryevich, AM RFD Mayor, City of Kalgoorlie-Boulder
6 EXECUTIVE REPORT
CEO’s Report The Annual Report covers the operations of the City for the 12 month period 1 July 2013 to 30 June 2014. Each section within the City has provided a snapshot of its operations for this period.
The City of Kalgoorlie-Boulder is the most diverse Local Government in WA in the type of services it provides and delivers to its community. It is also one of the largest, with a total annual budget of around $100million and assets under the control of the City valued at over $600million. Chief Executive Officer Donald Burnett As can be seen in this report, several large projects are well underway which will further enhance the City’s family friendly status.
The City’s great built facilities are matched by the services we provide and the community events that the City put on. As a Local Government we hope we more than just provide for the basic needs of the community and do actually achieve a higher standard.
During 2013/14 we commenced a review of our Community Strategic Plan, which combined with the first community satisfaction survey, will provide a clearer direction for the City on how to continue to provide the good facilities and services and enhance these where possible.
Don Burnett Chief Executive Officer
7 EXECUTIVE SERVICES DIRECTORATE ORGANISATIONAL DEVELOPMENT AND GOVERNANCE
Human Resources During 2013/14, the City maintained a workforce of approximately 276 staff. The workforce was comprised of 249 permanent full and part time employees and 27 on fixed term contracts of which16 were Trainees and 1 an Apprentice. The City also employed 172 casuals, 143 of whom worked at the Oasis Recreational Centre.
For the year ending 30 June 2014, there were 41 resignations with a turnover rate of around 16%. The City also engaged a small number of project workers to facilitate new initiatives and projects.
In September 2013, the City of Kalgoorlie-Boulder took over management of the Goldfields Arts Centre including the established staff.
Occupational Health and Safety The City continued to improve and rationalise its Occupational Health and Safety, program. Safety committees, inspections and reporting all increased and the OSH program was audited by the insurers in September 2013. An e-learning module was introduced for contractor inductions and this will be extended to staff in 2014/15. Over 2013/14 all City departments assessed potential workplace organisation risks as part of the Organisational Risk Management program (ORM).
Safety performance figures for incidents and injuries during the period recorded a total of 60 incidents, which although an increase from the previous year is a direct result of a focus on hazard reporting. Sixteen of the incidents above resulted in a Workers Compensation claim being lodged of which 4 were Lost Time Injuries. The Lost Time Injury Frequency Rate (LTIFR) of 6% is down from 20.7% from the previous year. A new process for workers compensation was introduced which contributed to a reduction in lost work time injuries.
Learning and Development During 2013/14 City staff attended training courses, seminars and conferences on a variety of topics including Post Traumatic Incident Response, Workforce Planning, First Aid and Epilepsy Essentials. The City employed 15 Trainees, 1 School Based Trainee and 1 Apprentice during the year completing qualifications in finance, building, IT, business, horticulture, fitness, regulatory services, events and community services. A 100% completion rate was again reached by City Trainees. The City’s OSH Trainee, Parewa Poka was nominated for the State Training Awards for the “Trainee of the Year” category.
2014 Trainee Cohort, image courtesy Kalgoorlie Miner 8 Governance In line with the Cat Act 2011, the City is in the process of making its Cat Local Law which will be presented to Council for approval. The City has also undertaken a document review on the intranet and internet sites to ensure quality of documents and consistency; these include Local Laws, Minutes and Delegated Authorities.
Customer Service There has been a focus on improving customer service across the City since the Customer Service Coordinator role was introduced in September 2013.
The customer service standards guidebook has been revised and all new starters now receive customer service induction training. A customer complaints handling procedure has been implemented to track and monitor progress of responses.
To make it easier for customers to contact the City the following have been implemented; an online customer enquiry form, an automated phone diversion system, and a link to the National Relay Service for people with speech or hearing difficulties.
During 2013/14, the City initiated a project to complete its first Community Perception Survey. It will be valuable for highlighting areas where the city performs well and also areas that need further development. It will also be valuable for the review of the Community Strategic Plan.
9 COMMUNITY SERVICES DIRECTORATE
COMMUNITY SERVICES History and Heritage Unit The History and Heritage Unit had a productive year with two traveling exhibitions and two lectures being hosted at the Kalgoorlie Town Hall. The Unit participated in events such as Australian Heritage Week, Australian Heritage Festival, Kalgoorlie Race Round, International Museum Day as well as participating in two new community events, Explore the Goldfields Day and the St. Barbara’s Day celebrations. The year has seen an increase in visitor numbers in all areas of the Unit’s activities. The highlight of the year was preparing tender documents for the redevelopment of the Goldfields War Museum.
Town Halls The Kalgoorlie and Boulder Town Halls collectively enjoyed 1,709 visitors Director of Community Services who took advantage of the free weekly guided tours. Comments in the Coby Halpin Visitors Books were all very positive, expressing visitor enjoyment of both historic Town Halls.
Goldfields War Museum The Goldfields War Museum had 6,567 visitors view their displays. Return visitors indicated their pleasure at new exhibits being displayed since their previous visit. The successful school holiday program saw 368 children enjoy museum themed activities. Research continued on the collection in anticipation for the redevelopment of the Goldfields War Museum and the Commemoration of World War I. Plans to relocate the Goldfields War Museum from their temporary location in the Kalgoorlie Town Hall to the Boulder Town Hall are progressing well and expected to be complete in late 2015.
Archives The City Archives are proving popular with over 550 enquiries being handled this year. The Archives have been involved in research projects such as the interpretation of Lord Forrest Olympic Swimming Pool and the review of the Municipal Heritage Register.
CollectionsCare WA Project Although the CollectionsCare Project accomplished a great deal in the area of heritage conservation with the 4 participating Shires, the project wound up at the end of April 2014.
Eastern Goldfields Community Centre The Eastern Goldfields Community Centre continues to provide a quality service to senior citizens, the frail aged and younger people with disabilities and their carer’s to assist them to remain living as independently as possible in their own homes.
Services including domestic assistance, social services, transport and Adult Day Centre are all planned and implemented in line with the Home and Community Care (HACC) Wellness Philosophy.
The Community Centre implemented the Western Australian Assessment Framework Interface in collaboration with the Regional Assessment Service (RAS) which facilitates all assessments for residents seeking to avail HACC services.
The Meals on Wheels (MOW) Volunteers were nominated as Volunteers of the Year for 2013. The City is enormously proud of them and thank them for their ongoing commitment in delivering meals to residents of our City. Other successful events over the last year included Seniors Week, the annual Christmas Lunch, Stay on your Feet, Tai Chi, Dine for Dementia, Valentine’s Day Lunch. The EGCC continues to host weekly scheduled activities for the Seniors, with plans to introduce some new activities in the future.
10 Access and Inclusion for People with Disabilities The City recently submitted its annual progress report related to the City’s Disability Access and Inclusion Plan to the Disability Services Commission and Western Australia Health and Community Care department.
Improvements to access and inclusion for people with disabilities within the City for the 2013/2014 Financial Year include:
• Introduction of the National Relay Service to ease access for clients who are deaf or have a hearing impairment • Installation of accessible toilets at Sir Richard Moore Oval, Digger Daws Oval and the Boulder Town Hall • Continuation of the City’s repaving program with the use of tactile pavers • Replacement of a hoist at the Oasis recreation facility to assist with access to the 50 metre Olympic Pool • Installation of a new portable and adjustable shower trolley for the Oasis Recreation Centre’s disabled change rooms • Modification to existing disabled car bays to comply with current Australian Standards at the Oasis recreation centre • Marking out of ACROD parking bays at City hosted events • Continued support for people with disabilities through the Home and Community Care program, with the replacement of the door at the Adult Day Centre (part of the Eastern Goldfields Community Centre) and renovations of the Adult Day Centre’s Kitchen to comply with the City’s Food Safe Program, enabling that kitchen to be used for cooking activities with clients, promoting independent living.
C.Y. O’Connor Men’s Shed The C.Y. O’Connor Men’s Shed is well utilised with 96 men now registered as active members plus 32 more as part of group memberships. The Shed provides a venue for programs and activities for a variety of non- profit groups within Kalgoorlie-Boulder.
Projects undertaken have included the creation of Taser Boxes to safely house Taser equipment for the Kalgoorlie Police Station. These were constructed by Eastern Goldfields College students. Play toys, cabinets and repairs on equipment have been undertaken on behalf of play groups within the local area by members. Various other projects for not for profit organisations include the EGCC pamphlet display stand and the Dizzy Fingers craft display.
Men’s health programs in the shed have included One Pot Cooking Classes and Asthma awareness.
William Grundt Memorial Library The William Grundt Memorial Library continues to promote literature in various formats, providing the community education and leisure opportunities.
The William Grundt Memorial Library has maintained a high profile attracting 70,054 visitors in 2013/14. There has been a noticeable change in the way that library members are using the library, with members accessing resources from home and conducting their catalogue searching online in the first instance, prior to visiting.
Library members have conducted approximately 20,415 searches via the online catalogue and placed 3,100 reservations online this year. Library members borrowed 100,902 library items and we recorded 41,301 borrower transactions during the 2013/14 financial year.
Library members have checked out 3,000 eBooks and downloaded 182 audio books. Membership is currently 10,045 and the usage of the Flexible Learning Room and computer access to computers is still in very high demand with over 9,696 sessions, which is 13.8% of the people through the door.
11 COMMUNITY DEVELOPMENT Grants Coordinator This role is responsible for finding alternative revenue streams through government grants for various capital and operational projects around the City. This financial year saw the completion of a number of successful capital grant funded projects including the Oasis Alternative Energy Project and Elements 1 & 2 of the Ray Finlayson Sporting Complex. The City also received a number of operational grants to help fund Community Development events and projects, the implementation of the Cat Act, CCTV amongst many other projects.
Sport The continuation of the Department and Sport and Recreation’s KidSport initiative was a major success for the City 2013-14 with approximately $50,000 in financial support being provided to youth aged 5 -18 years to participate in structured sport and recreation opportunities over the past 3 years.
In July 2013 the Regional Talent Development Program was launched in Kalgoorlie-Boulder aimed at increasing the capacity of local sports coaches and talented junior athletes. The program, a partnership between the City of Kalgoorlie-Boulder (CKB), the Department of Sport and Recreation (DSR) and sponsored by BHP Billiton Nickel West, aimed to increase the skills and knowledge of coaches in the Goldfields by providing access to professional development, mentor coaching opportunities and educational workshops facilitated by State Sporting Associations and high profile industry leaders. Participating sports were then required to develop and implement a 12 month junior athlete development program in collaboration with their sports governing body which provides an elite pathway for local athletes without having the need to travel to metropolitan areas. After the success of the inaugural year the RTP Program has expanded from 6 sports to 10 in 2014-15.
Community Events The annual calendar of community events was once again very well received with increased attendance at all events throughout the year. The Sunset at the Soundshell Concert Series saw large crowds coming to sing along and dance to Australian Played, So Hot Right Now- Hits of Today, The Ultimate Bee Gees and who could forget the amazing talent which was Johnny Cash: The Concert. The second annual Outdoor Cinema Series was also popular with families, despite the weather conditions many still attended all rugged up in blankets to enjoy a night watching the big screen. This years Multicultural Festival was the most successful yet, with not only a record attendance at the festival but also a record number of community groups taking part in the event. Goldfields KidsFest Those who attended enjoyed the vibrancy of the day as they watched traditional dancing fill the stage, tasted plenty of delicious food, and experienced the array of multicultural workshops and stalls on offer. Other annual events which continue to be a highlight for families in Kalgoorlie-Boulder include the Australia Day Big Aussie Breakfast, Spotlight: Town Hall Concert Series, Art Prize, Pet’s Day Out and Lighting of the Christmas Tree Street Party.
Youth There were a number of successful programs and events held for young people in Kalgoorlie-Boulder throughout the 2013/14 financial year. The biggest highlights were Youth Fest where over one thousand young people from the Goldfields celebrated the WA launch of National Youth Week with headline acts Taylor Henderson, Omar Dean and ‘Make Believe Me’.
The grand opening of the Kalgoorlie-Boulder Skate Park facility attracted young people from all over WA and over 400 locals; the event was the biggest Skate, Scooter and BMX comp held in Kalgoorlie to date and the park still attracts approximately 80-100 young people per day over the weekends.
A number of successful events and programs were also run over the school holidays, including the Skateboard 12 Australia Partnership, Art Workshops, the School’s Out Pool Party, the Youth Starlight Cinema Nights and the Youth Leadership Program. The Youth Council also reviewed their Youth Council Charter to allow for an open term time frame and an increase of youth council members from 16 to 20.
Goldfields Arts Centre The Goldfields Arts Centre was officially taken over by the City of Kalgoorlie-Boulder on 1 September 2013. From then until now, the transition process has been a major undertaking for staff, with all IT services being transferred from Goldfields Institute of Technology to the City.
Integration with the City has resulted in the Goldfields Arts Centre now being able to take future bookings. This has led to a healthy and diverse program of events for the 2014/2015 calendar. The ongoing development of the Strategic Business Plan is also expected to see activity at the Goldfields Arts Centre on the rise in the new financial year. After three years of not being eligible for funding, the Goldfields Arts Centre has been recently approved for Lotterywest funding.
Goldfields Oasis Recreation Centre The Goldfields Oasis had a successful year in 2013/14, with the centre receiving awards and major national recognition for its commitment to workforce culture, customer service and environmental sustainability. This recognition included the Fitness Australia Gold Quality Award, DSR Creating a Better Workforce Award and Waterwise Water efficiency endorsement in addition to national recognition from Les Mills Asia Pacific, listing the Oasis as a Top 5 centre in Australia.
Several major works were completed at the Oasis this year, including the completion of The Compound, a 150m2 outdoor facility dedicated to small group fitness training, Indoor stadium re-surfacing, expanding the crèche outdoor area, increasing its quickly growing capacity and the re-opening of the FlowRider artificial wave attraction.
The Alternative Energy project, being solar thermal hot water for pools and solar PV and installation of a ground source heat pump system was completed. This $2.6million project partly funded by the State and Federal Governments is expected to realize annual greenhouse gas and energy cost savings in the order of $250,000 per annum.
The Oasis has seen significant demand for Swim School Membership with an increase of over 50%in 2013/14 more than 600 children enrolled.
The Oasis continued to host major events at the centre including the 2014 Goldfields KidsFest, the Goldfields Children’s Charity Ball, Women’s Triathlon and inaugural Kids Christmas Party.
A number of new initiatives have been implemented to help improve member retention and overall exercise participation. This includes MYZONE a heart rate monitoring tool, allowing users to track and record all movement activity and Fitness on Demand, a Virtual Group Fitness system allowing patrons to participate in a wide variety of classes every hour we are open.
The Oasis has continued to focus on social media engagement; further refining and improving our Facebook Page with improved videos demonstrating exercises every week, ongoing nutritional and training advice and our “challenge our staff” campaigns allowing followers to become highly interactive and engaged with the centre, even when not in attendance. The Facebook page has grown from 1800 ‘Likes’ to 2470 ‘Likes’ in the past twelve months. This continues to be a highly effective way to communicate with patrons and the community.
13 DEVELOPMENT SERVICES DIRECTORATE
DEVELOPMENT SERVICES
Strategic Planning Local Planning Strategy The Western Australian Planning Commission (WAPC) recently approved the City of Kalgoorlie-Boulder Local Planning Strategy (LPS). The LPS provides the strategic basis for the preparation of the new Town Planning Scheme and future planning decisions regarding development.
Kalgoorlie City Centre Revitalisation Project Concept development for stage one of the Kalgoorlie City Centre Revitalisation has been completed in line with the outcomes of the community consultation.
Public Open Space Strategy Director of Development Services The City recently adopted a new The Public Open Space Strategy. The Alex Wiese document creates a consolidated approach to planning public open space (such as parks and ovals) and will ensure the adequate provision of recreational facilities for the community of Kalgoorlie-Boulder as the City grows.
Residential Land Availability Review The City completed a Residential Land Availability Review to identify vacant land available for ‘Residential’ or ‘Future Urban’ uses. The review found that there is approximately 47 years supply of land for possible future residential development. Of the available land supply, 15 years supply can be developed in the short to medium term without any major impediments.
Statutory Planning The role of the Statutory Planning Services is to ensure that development is in accordance with the City’s Town Planning Scheme and that it does not cause negative amenity to others in the community.
Planning Applications The Statutory Planning Services determined 420 development applications for the 2013/14 year with 99.5% of these applications being approved. This represents an increase of 120 applications over the previous financial year. Residential applications took on average of 23.3 working days for assess while commercial applications took on average 14 working days. These figures do not include consultation time with state agencies, neighbours or the instance when the City was awaiting further information from the applicant. The team also provides a free Development Control Unit, which offers pre-application advice for commercial or larger proposals.
Subdivisions The Statutory Planning Services also provided recommendations to the WAPC on 33 applications for subdivision, survey-strata and or amalgamation and facilitated the clearance of conditions for 35 applications for the same.
Municipal Heritage Inventory The Statutory Planning Services is currently conducting a review of the Municipal Heritage Inventory (which contains 222 heritage buildings). This includes updating the descriptions, photographs and recommending additions or removal from the list. Heritage Building owners are encouraged to contact the City to find out if restoration works on their building would qualify for a Local Heritage grant and how to make a claim.
14 Building The role of the Building Services is to ensure that buildings within the City are structurally sound, do not provide a risk to the community and are in accordance with the construction Code and laws.
Building Applications The Building Services determined 536 building applications for the 2013/14 year with 97.4% of these applications being approved. Building applications were valued at $78,042,514, an increase of $25,936,929 over the previous financial year. The number of building applications also increased over the previous financial year with 107 additional applications made.
Other Building Applications In addition to the building applications, a considerable number of compliance issues, Building Approval Certificates, Certificates of Design Compliance, Certificates of Building Compliance, Certificates of Commercial Compliance and Building Orders were assessed and determined.
HEALTH AND COMPLIANCE SERVICES The primary role of Health and Compliance Services is to protect the health and well-being of residents through the delivery of various programs that encourage, monitor and ensure compliance with public health, community and environmental laws. The sections goal is to help make the City a safe, healthy and sustainable place to live.
Environmental Health Food Safety Food business assessments are conducted routinely throughout the year and when concerns are raised to ensure that practices and standards are being maintained in accordance with the relevant food safety and hygiene standards. A total of 241 food businesses including restaurants, cafés and take-away shop were registered during the year with 484 food safety and hygiene inspections conducted.
Accommodation Control – Lodging Houses and Substandard Buildings Health and Compliance Services conducted inspections of lodging houses, hotels and caravan parks within the City to ensure that they were maintained and operated in a manner that keeps patrons and residents safe. Substandard houses and buildings were also investigated throughout the year and action taken to ensure they were returned to an acceptable standard.
Water Quality Control Regular routine microbiological, physical and chemical testing of public swimming pools (hotels, motels etc.) was undertaken throughout the year. A total of 260 samples were submitted, with the majority of samples meeting the required standards. Non-compliances were addressed as a priority. In addition 239 samples were submitted to ensure the City’s reclaimed water reticulation scheme continues to operate within Health Department approval criteria.
Public Buildings Health and Compliance Services undertook 107 inspections of public buildings in accordance with Minister Marmion turns on the solar thermal water the Health (Public Buildings) Regulations 1992 to heating at the Oasis ensure patron safety.
Environmental Noise Control Health and Compliance Services actioned 142 formally lodged noise complaints, which resulted in 130 follow- up dealings due to the complexity of some matters. The majority of noise complaints were related to business activity in close proximity to residential housing, building construction noise, and amplified music.
15 Mosquito Monitoring and Control To minimise nuisance and public health issues to residents, mosquito control continues to be a priority. Mosquito breeding activity in 2013/14 has reduced compare to the previous year however is still above average for the district due to increased rainfall and favourable weather conditions that supported mosquito breeding. Despite extensive mosquito control activities, 26 cases of Ross River Virus were reported within the Kalgoorlie-Boulder.
Local Emergency Management The City’s Manager Health and Compliance has continued to chair the Local Emergency Management Committee (LEMC) as the Mayor’s nominee. Regular meetings and exercises were held to ensure the City is well prepared to deal with any emergencies that may arise.
Special Events and Temporary Public Building Environmental Health Officers inspected and issued 28 approvals for special events, fairs and festivals, including Kids Fest, Race Round, Diggers and Dealers, Community Fair, Spring Festival, NAIDOC week, the Nullarbor Muster and the Saint Barbara’s Day Festival.
Indigenous Environmental Health Environmental Health Officers visited and conducted a variety of activities to help improve the levelof environmental health in Indigenous communities. Communities visited included; Ninga Mia, Kurrawang, Mulga Queen, Morapoi Station, Marmion Village, Iragul, Katampul, Tjuntjuntjara, Cosmo Newberry, Coonana, Wongatha, Wonganarra, Nambi Road and Mount Margaret.
Ranger Services Rangers attended to 5,260 jobs throughout the year. Ranger Services continues with an approach to education rather than enforcement with 2,332 warnings/notices issued, compared to 1,818 infringements. Issues related to animals and parking comprises of the majority of complaints received.
Animal Issues 1,015 dogs were impounded during the year, a decrease of 15% on last year. 60% of dogs impounded were able to be returned to their owners, 21% re-homed with 19% of impounded dogs being euthanized.
406 cats were impounded during the year, 5% being returned to their owners, 9% re-homed, resulting in 86% of cats entering the facility being deemed feral and euthanized. Sixty other animals were also impounded ranging from ducks to horses.
Parking Control Timed parking areas around the City continue to be patrolled with 58,188 vehicles checked during the year, resulting in 818 infringements or 1.5% of vehicles checked found overstayed. Burt St CBD patrols were reduced for part of the year due to restoration work. A further 427 infringements were issued for general parking related offences.
Projects The City started to undertake it legislative responsibility with regards to Cat Control. A new separate cat holding facility was built to accommodate the animals. This has resulted in a 160% increase on previous cat related work. These types of complaints are also time consuming and often involve trapping and monitoring over a number of days to achieve the required results.
Rangers participated in a joint operation with WA Police during the year targeting Off-Road Vehicle (ORV) offences around the City. This joint effort was deemed a success by all involved and highlights the good working relationship the City has with local police. Similar operations will continue in the future.
16 SUSTAINABILITY AND WASTE MANAGEMENT Sustainability 2013/14 saw projects aimed at improving the City’s standing as a ‘sustainable regional city of the future’, the most notable project being the installation of a 150kW solar system at the City’s wastewater treatment plant. This system will generate approximately 250,000 kWh per annum, reducing electricity costs at the site by over $60,000 per year.
Goldfields Oasis Recreation Centre Solar Panels
The Oasis Alternative Energy project was completed and will reduce the City’s consumption of natural gas by over 70%. A further large solar PV system is planned for the Kalgoorlie-Boulder airport.
The Water Corporation recently awarded the City with a Waterwise Council accreditation for its ongoing commitment to water conservation and efficiency. The City aims to reduce its water consumption by a further 5% by 2015/16.
The Oasis Recreation Centre was awarded the Waterwise Leisure Centre accreditation for their work to reduce water consumption on site and in doing so becomes the sixth recipient in WA.
Sewerage In the 2013/14 year the City experienced 63 system failures, well within the City’s National Performance criteria. The City continued to use CCTV to identify at risk sewers, and the information obtained is used to set forward works programs.
The City’s South Boulder Wastewater Treatment Plant treated approximately 6.8 mega litres of wastewater per day. The treated effluent produced was used for the irrigation of ovals, parks, gardens, the Kalgoorlie Golf Course and on-sold to the mining industry.
Refuse collection and recycling The City’s kerbside recycling service captured approximately 1,951 tonnes of recyclables for the 2013/14 financial year.
The City’s residential bulk bin service provides one free 4m³ bulk bin per annum to residential premises on a first come first served basis to assist in the disposal of general property waste. This service was well utilised during the 2013/14 Sorting recyclable materials year.
17 ENGINEERING SERVICES DIRECTORATE
KALGOORLIE-BOULDER AIRPORT The resource industry correction, particularly insofar as the gold mining sector was concerned, saw passenger numbers through the Kalgoorlie- Boulder Airport for the year reduce by 12.45% compared to those in 2012/13 (from 249,050 to 218,035).
Passenger fee revenue too was about 9.91% less than the previous year at $4,726,101.
Passenger fees for charter passengers were introduced in January 2014 when, after that six month period, a further 6,084 travellers passed through the terminal for an additional revenue return of $134,091.
Landing fee income, however, improved marginally to achieve another Director of EngineeringServices record of $1,385,025 in 2013/14, compared to the $1,384,642 recorded in Rob Radosevich 2012/13.
Needed work was commenced to rebuild a deformed portion of the northern section of Taxiway Bravo (which services the north/south runway) with extensions having also been carried out to the northern general aviation apron to increase taxi lane widths to accommodate larger aircraft conducting charter operations in that area of the airport.
ENGINEERING SERVICES The 2013/14 financial year saw further substantial expenditure on major capital improvement and rehabilitation works in the Engineering Services area. Works undertaken included several traffic safety projects and numerous reconstructions of major roads.
Highlights for the year included the construction of the McDonald/Cassidy, Wilson/Dugan and Roberts/Lane roundabouts as well as the continued upgrade works carried out on the City’s rural regionally significant roads, including Yarri Road, Broad Arrow–Ora Banda Road and the Mt Monger Road.
ROADS AND TRANSPORT Roadworks The continuation of the Federal Government’s Roads to Recovery program provided expenditure of $830,000 for a number of projects. The State Government’s Road Project Grant saw the expenditure of $2,373,000 (2/3 State and 1/3 Council) on improvement and preservation works on several significant local roads, including Lionel Street, Graeme Street, Boulder Road-Federal Road-Lane Street, Piccadilly Street, Yarri Road, Boorara Road, Mt Monger Road and the Ora Banda – Broad Arrow Road.
A mixture of State, Federal and Council funds totalling $575,000 was spent on the maintenance and upgrading of the Trans Access Road which services the Aboriginal communities and pastoralists to the east of the City. These works included repairs to flood damage resulting from the heavy rains in January.
As per previous years, major expenditure items also included $153,000 for kerbing upgrades and maintenance, $725,000 for the sweeping and cleaning of streets, and $182,000 for laneway upgrades and maintenance works. Urban road maintenance expenditure totalled $901,000 with a further $573,000 being spent on rural road maintenance.
The annual costs for the operation and maintenance of streetlights throughout the City amounted to $907,000 while a further $59,000 was allocated to streetlighting upgrade projects. Upgrade projects were undertaken in the West Kalgoorlie, Boulder, South Kalgoorlie and Kalgoorlie Central areas of the City.
18 Traffic and Safety Improvements The continuation of the Federal Government and State Government Black Spot road funding programs saw an amount of $1,213,000 spent on a number of traffic safety improvement projects throughout the City. The main projects undertaken included the construction of the Cassidy / McDonald roundabout, completion of the of the Wilson / Dugan and Roberts / Lane roundabouts, installation of a turning lane off Gatacre Drive at O’Connor Steet, installation of centre islands and nibs at Johnston/Brookman and Collins/Parsons and the realignment of substandard bends on Yarri Road.
Footpaths and Shared Use Paths A total of $85,000 was spent on the construction of new footpaths as a continuation of the City’s ongoing footpath construction program and $151,000 spent on replacement/upgrades. Footpath maintenance expenditure of $563,000 included the footpath washing and sweeping program in the Kalgoorlie and Boulder CBD’s.
Drainage Drainage expenditure for the year totalled $408,000 spent on maintenance and construction, with the main construction project being the Maritana/ Bourke intersection drainage improvement.
GRAFFITI The City’s “Zero Tolerance” to Graffiti Policy, which includes the employment of a dedicated Graffiti Response Officer with his own specially equipped vehicle and trailer and the City’s graffiti reporting software has seen a continued improvement in the overall look of the City. Total cost of the program was $166,000. New Line Marking Tools
STREETSCAPE The ongoing upgrade of footpaths to brick paving and associated street furniture upgrade continued in the Kalgoorlie CBD with a total expenditure of $102,000.
BUSHFIRE SERVICES The City’s Chief Bushfire Control Officer (CBFCO) received a lower than average number of bushfire calls during the year.
PARKS, GARDENS RESERVES Approximately $5.1 million was expended on the maintenance of parks, gardens and recreational facilities during the year. This expenditure included $675,000 for specified maintenance and capital projects. New and enhancement projects undertaken during the year included replacement playgrounds at Finnerty Park, Richardson Park and Hopkins Park along with the installation of shade sails at Loopline Park and Centennial Park.
Reserves A total of $2.3 million was expended on verge maintenance throughout the City which included a total of $480,000 on the control of weeds on verges and lane ways following the heavy rainfall events experienced during summer. An amount of $510,000 was expended on the maintenance of street trees and a further $290,000 on the maintenance of Gribble Creek, Lake Douglas and Karlkurla Park.
The City also contributed $130,000 towards clean ups in outlying fringe camp sites throughout the year.
Reticulation A total of $342,000 was spent on maintenance and upgrade works to the City’s treated wastewater distribution system that provides water to the City’s major parks, ovals and gardens.
19 CORPORATE SERVICES DIRECTORATE
CORPORATE SERVICES DIRECTORATE
CORPORATE SERVICES The responsibility for Financial Management, Asset Management, Commercial and Property Management, Information Technology, Records Management, and Rating, all fall within the area of the City of Kalgoorlie- Boulder’s Corporate Services.
FINANCIAL MANAGEMENT Financial Management of the City’s resources lies with the Finance Team who are responsible for maintaining property records and rating, day to day accounting, investing surplus funds, calculation and payment of salaries and wages, tracking and payment of loans, and computerised purchasing of Materials and Services. Interim and Final Audits are completed each year, to ensure sound financial management is attained in accordance Director of Corporate Services with Legislative and Council requirements. Braden Fisher The Finance Team also report to the Audit Committee. Part of the Financial Management is calculation of performance indicators to highlights trends. A summary of these performance indicators is listed below:
20 Recording Of Assets at Fair Value Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and measurement of non-current assets at Fair Value became mandatory. This is being phased in over 3 years and transitions the value of non-current assets from historic cost to their assessed value by market or other determinations at the current time. Land and Buildings were re valued in 2014 and their value (including Investment Property – the Endowment Block) was $119,060,424.
Cash Backed Reserves and Investment Of Surplus Funds Corporate Services is responsible for the investment of Reserve Funds and Operational Funds. Investments are Term Deposits of up to 12 months duration, with Major Financial Institutions, and in accordance with Regulation 19C of Local Government (Financial Management) Regulations 1996. During 2013/14 Council had invested an average of $29.7 million, with a peak of $34.4 million during the rate collection season.
Most of the 19 Reserves held, have been established over the years to allow for development to occur without a major impact on rating or the need to borrow funds. Other reserves are to smooth operating expenses from year to year, like Leave Reserve and the Insurance Equalisation Reserve. Total of Cash Backed Reserves held at 30th June 2014 was $26,219,054, compared to $28,636,375 in 2013.
Cash Backed Reserves:
Financial Reporting The Finance Team presented Council with timely and accurate financial reports during the year as well as various management reports for the Airport, Golf Course and Oasis Committee Meetings. Special reports for Officers responsible for Income, Purchasing, Grant funding, and projects are also produced toassist Management of monies and resources. A snapshot of the City’s Financial Data for 2014 on the next page.
21 The following Charts show Operating Income and Expenditure by Nature and Type and Capital Expenditure by Type:
22 Loan Indebtedness Overall Loan Indebtedness has increased from $4.5 million in 2013 to $8.6 million in 2014. New Loans have been raised at very low interest rates for the Ray Finlayson Complex at 4.73% interest, the Oasis Alternative Energy Project at 4.45% interest, for new Plant and Equipment at the Golf Course at 3.4% interest . Loans are distributed as follows:
23 COMMERCIAL Golf Course The Kalgoorlie Golf Course has become a high quality course, improving its position to be the number 22 public access course in Australia and number 4 public access in Western Australia, reinforcing the City’s belief that it is a world class course. This status was further enhanced by the Kalgoorlie Golf Course and the City of Kalgoorlie-Boulder entering in to a three year deal with the PGA to host the WA Goldfields PGA Championship. Successful tournaments have now been held in 2012 and 2013. The Kalgoorlie Golf Course has won two awards, WA Regional Golf Course of the Year and WA Regional Golf Facility of the year, in 2013 and in 2014.
Endowment Block The City took over management of the Endowment Block on 1 March 2014. Commercially it has been a very quiet year for leasing. The City has tried to combat this situation by upgrading the appearance of the Endowment Block properties, carrying out a major reroofing project and looking at alternative ways of leasing, such as Pop Up shops and Collaborative Leasing.
Burt St Facade Project The Burt St Facade Project is well underway with some amazing transformations. A number of properties have been completed, the community and tourists have taken a real interest in this project and once complete will be an outstanding asset for the City.
Goldfields Records Storage The Goldfields Records Storage Facility has been well received by the community. Disposal and shredding has been very popular with storage picking up monthly.
ASSETS & PROCUREMENTS Projects Last financial year the City carried out the following Projects: • Ray Finlayson Element 1 – Relocation of the Eastern Goldfields Equestrian Club and construction of new premises and arena’s • Lord Forrest Olympic Swimming Pool Stage 1- Demolition of the existing pool basin, grand stands, pump house, dive platform and concrete concourse • Burt Street Community Hub – Renovation and refurbishment of the former war museum building for use as a Community Hub. Kingsbury Skate Park Extensions • Kingsbury Park Skate Park extension - Skate park extension at Kingsbury Park. • Endowment Block re-roofs - Re-roofing and roof drainage of the endowment block and Kalgoorlie Town hall. • Market Arcade – The refurbishment and structural repairs to a number of units in the Markets Arcade building is almost complete. • Basketball Stadium Re-Roof – Phase 1 the re-roofing of the low level roofs has been completed • Hammond Park Café - A complete strip down and rebuild of the old Café, including completely new Kitchen and Appliance for the new Café. The following Projects have been substantially progressed • Ray Finlayson Element 3 – The tender has been issued for the construction of new playing fields, lighting and reticulation. • Ray Finlayson Element 4 – Changing rooms and clubrooms – Consultants have been appointed to prepare tender documentation with a view to going to tender in September / October 2014. 24 • Basketball Stadium Re-Roof – Phase 2 consisting of works to the high level roofs and ancillary site works is due to be completed in September. • Goldfields War Museum – Tender issued for the Design and Construct of the Goldfields War Museum. Tenders are due to close in September.
Procurement The Procurement team facilitated the tendering and awarding of 14 contracts in the 2013/14 year.
Assets Following the appointment of the Manager of Assets & Procurement in May 2014 work has commenced on reviewing the City’s Asset registers, plans, policies and procedures. Asset Management support is also being provided to the GVROC Councils as part of a Department of Local Government funded project.
INFORMATION SYSTEMS Information Systems has had a very busy and successful year. At the core of City business, Information Management (Records) and Information Technology Departments are at the forefront of change and growth.
A complete network, server and storage refresh has enabled the City to maintain and increase productivity. As well, an off-site backup centre has been implemented that provides a greater level of redundancy and risk mitigation.
A benchmarking and planning process was carried out in 2013/14 and from this was developed an ICT plan which will be implemented over the next 5 years. This will involve rebuilding the City’s infrastructure platform, expanding services to remote sites and business units, developing accessible mobile services to keep up with community expectations and demands, and preparing for possible amalgamation and hybrid cloud services.
Some recent software upgrades and implementations have seen significant cost reductions and productivity increases.
Two new sites, the Goldfields Arts centre and Kalgoorlie Golf course have been added to the network. The separation of services from Goldfields Institute of Technology and the Goldfields Arts Centre has been funded by the Department of Training and Workplace Development.
The following years, with the implementation of the ICT plan, will see an increase in online services, compliance and efficiencies delivered by the City of Kalgoorlie-Boulder Information Systems team.
Server room after upgrade
25 NATIONAL COMPETITION ACT COMPLIANCE
The City of Kalgoorlie-Boulder, in satisfaction of the provisions of clause seven of the Competition Principles Agreement, offers theollowing reports on activities which occurred during 2013/14.
COMPETITIVE NEUTRALITY This principle deals with ensuring that government business operations have no advantage or disadvantage in comparison with the private sector.
The policy dictates that competitive neutrality should apply to all business activities which generate a user pays income of over $200,000 unless it can be shown that it is not in the public interest. In this regard, no significant new business activities for the purposes of competitive neutrality were initiated or considered during the year and no non-compliance allegations were made.
26 FINANCIAL REPORT CONTENTS
28. Statement by Chief Executive Officer
29. Statement of Comprehensive Income by Nature or Type
30. Statement of Comprehensive Income by Program
32. Statement of Financial Position
33. Statement of Changes in Equity
34. Statement of Cash Flows
35. Rate Setting Statement
36. Notes to and Forming Part of the Financial Report
97. Independent Auditor’s Report
99. Supplementary Ratio Information
27 28 CITY OF KALGOORLIE-BOULDER STATEMENT OF COMPREHENSIVE INCOME BY NATURE OR TYPE FOR THE YEAR ENDED 30TH JUNE 2014
NOTE 2014 2014 2013 $ Budget $ $ Revenue Rates 22 21,691,389 21,756,300 21,186,858 Operating Grants, Subsidies and Contributions 28 7,047,658 6,738,313 7,124,121 Income from Property 3,426,121 2,892,982 3,288,981 Fees and Charges 27 25,902,277 28,155,413 25,973,678 Interest Earnings 2(a) 1,581,865 1,585,869 1,959,647 Other Revenue 478,537 7,705,586 551,886 60,127,847 68,834,463 60,085,171
Expenses Employee Costs (25,116,257) (24,489,614) (23,430,983) Materials and Contracts (21,143,608) (20,902,938) (21,285,172) Utility Charges (3,545,834) (3,183,850) (3,301,494) Council Contributions (1,597,383) (1,807,074) (1,592,446) Depreciation on Non-Current Assets 2(a) (10,457,943) (10,392,330) (9,740,657) Interest Expenses 2(a) (252,898) (337,675) (217,487) Insurance Expenses (1,396,142) (1,188,170) (1,149,425) Other Expenditure (1,212,820) (2,986,056) (1,288,414) (64,722,885) (65,287,707) (62,006,078) (4,595,038) 3,546,756 (1,920,907)
Non-Operating Grants, Subsidies and Contributions 28 3,836,938 41,591,582 8,160,244 Profit on Asset Disposals 20 19,926 354,791 191,956 Loss on Asset Disposals 20 (1,057,936) (252,137) (336,101)
Net Result (1,796,110) 45,240,992 6,095,192
Other Comprehensive Income
Changes on Revaluation of Non-Current Assets 12 57,833,679 0 137,555
Total Other Comprehensive Income 57,833,679 0 137,555
Total Comprehensive Income 56,037,569 45,240,992 6,232,747
This statement is to be read in conjunction with the accompanying notes.
29 Page 3 CITY OF KALGOORLIE-BOULDER STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM FOR THE YEAR ENDED 30TH JUNE 2014
NOTE 2014 2014 2013 $ Budget $ $ Revenue 2(a) Governance 767,674 4,002,000 3,813,206 General Purpose Funding 24,330,998 23,703,150 25,831,588 Law, Order, Public Safety 383,570 365,350 450,895 Health 428,766 434,190 387,099 Education and Welfare 1,490,858 1,443,520 1,395,386 Housing 49,671 61,500 53,073 Community Amenities 12,758,747 12,943,593 11,961,054 Recreation and Culture 6,966,892 8,222,304 6,660,421 Transport 9,224,348 12,310,932 5,915,296 Economic Services 1,985,678 2,785,955 1,707,224 Other Property and Services 1,740,645 2,561,969 1,909,929 60,127,847 68,834,463 60,085,171
Expenses 2(a) Governance (3,846,912) (2,909,769) (2,695,243) General Purpose Funding (791,093) (704,446) (1,006,950) Law, Order, Public Safety (1,591,089) (1,464,752) (1,205,246) Health (1,183,610) (1,402,371) (1,346,915) Education and Welfare (2,470,093) (2,493,192) (2,519,146) Housing (37,658) (60,000) (41,825) Community Amenities (11,663,961) (12,842,392) (12,406,034) Recreation & Culture (21,512,321) (20,139,376) (20,150,319) Transport (14,824,403) (18,662,648) (14,603,528) Economic Services (4,091,524) (3,174,955) (2,577,773) Other Property and Services (2,457,323) (1,096,131) (3,235,612) (64,469,987) (64,950,032) (61,788,591)
Financial Costs 2(a) Governance (7,935) (96,421) 0 Law, Order, Public Safety (1,763) (1,763) (2,277) Health (2,753) (2,754) (3,785) Community Amenities (93,286) (91,153) (100,574) Recreation & Culture (114,560) (113,403) (100,681) Economic Services (1,713) (1,713) (10,170) Other Property and Services (30,888) (30,468) 0 (252,898) (337,675) (217,487)
Non-Operating Grants, Subsidies and Contributions Governance 0 1,700,000 0 Law, Order, Public Safety 0 0 25,000 Health 0 0 25,200 Education and Welfare 0 0 106,440 Community Amenities 0 424,000 0 Recreation & Culture 1,283,321 38,038,818 4,556,816 Transport 2,553,617 1,428,764 3,413,088 Economic Services 0 0 33,700 3,836,938 41,591,582 8,160,244
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Page 4 CITY OF KALGOORLIE-BOULDER STATEMENT OF COMPREHENSIVE INCOME BY PROGRAM - CONTINUED FOR THE YEAR ENDED 30TH JUNE 2014
NOTE 2014 2014 2013 $ Budget $ Profit/(Loss) on Disposal of Assets $ Governance (39,664) (28,574) (30,358) Health (11,910) (18,659) (14,616) Education and Welfare (17,846) (60) (11,720) Community Amenities (11,831) (19,861) (10,019) Recreation & Culture (44,480) 73,939 (18,017) Transport (68,697) 167,405 151,722 Economic Services (814,274) (1,433) (6,034) Other Property and Services (29,308) (70,103) (205,103) (1,038,010) 102,654 (144,145)
Net Result (1,796,110) 45,240,992 6,095,192
Other Comprehensive Income
Changes on Revaluation of Non-Current Assets 12 57,833,679 0 137,555
Total Other Comprehensive Income 57,833,679 0 137,555
Total Comprehensive Income 56,037,569 45,240,992 6,232,747
This statement is to be read in conjunction with the accompanying notes.
31
Page 5 CITY OF KALGOORLIE-BOULDER STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2014
NOTE 2014 2013 2012 $ $ $
CURRENT ASSETS Cash and Cash Equivalents 3 26,975,063 31,839,744 29,439,345 Trade and Other Receivables 4 7,434,943 6,673,943 6,545,427 Inventories 5 614,666 397,184 398,978 TOTAL CURRENT ASSETS 35,024,672 38,910,871 36,383,750
NON-CURRENT ASSETS Other Receivables 4 696,529 766,467 838,983 Property, Plant and Equipment 6 122,825,713 74,752,662 85,777,308 Infrastructure 7A 169,621,325 163,427,065 142,625,430 Investment Property 7B 12,610,000 4,509,049 4,696,924 TOTAL NON-CURRENT ASSETS 305,753,567 243,455,243 233,938,645
TOTAL ASSETS 340,778,239 282,366,114 270,322,395
CURRENT LIABILITIES Trade and Other Payables 8 7,872,809 8,673,794 4,838,526 Current Portion of Long Term Borrowings 9 1,357,288 1,047,750 814,407 Provisions 10 3,008,908 3,235,634 2,885,858 TOTAL CURRENT LIABILITIES 12,239,005 12,957,178 8,538,791
NON-CURRENT LIABILITIES Long Term Borrowings 9 7,232,639 4,233,384 2,802,321 Provisions 10 484,382 390,908 429,386 TOTAL NON-CURRENT LIABILITIES 7,717,021 4,624,292 3,231,707
TOTAL LIABILITIES 19,956,026 17,581,470 11,770,498
NET ASSETS 320,822,213 264,784,644 258,551,897
EQUITY Retained Surplus 236,631,924 236,010,713 229,609,648 Reserves - Cash Backed 11 26,219,055 28,636,376 28,942,249 Revaluation Surplus 12 57,971,234 137,555 0 TOTAL EQUITY 320,822,213 264,784,644 258,551,897
This statement is to be read in conjunction with the accompanying notes.
32
Page 6 0 0 $ 137,555 (283,605) 6,095,192 6,232,747 TOTAL 57,833,679 56,037,569 (1,796,110) EQUITY 258,835,502 258,551,897 264,784,644 320,822,213 0 0 0 0 0 0 0 $ 137,555 137,555 137,555 57,833,679 57,833,679 57,971,234 SURPLUS REVALUATION 0 0 0 0 0 0 0 $ (305,873) CASH 28,942,249 28,942,249 28,636,376 26,219,055 (2,417,321) BACKED RESERVES 0 0 $ 305,873 (283,605) 6,095,192 6,095,192 2,417,321 (1,796,110) (1,796,110) 229,893,253 229,609,648 236,010,713 236,631,924 SURPLUS RETAINED Page 7 34 12 12 NOTE CITY OF KALGOORLIE-BOULDER STATEMENT OF CHANGES IN EQUITY STATEMENT OF CHANGES FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR Balance as at 1 July 2012 at 1 July as Balance ofCorrection Errors Restated Balance Comprehensive Income Result Net of Non-Current Assets Revaluation on Changes Total Comprehensive Income Transfers from/(to) Reserves June at 30 2013 as Balance Comprehensive Income Result Net of Non-Current Assets Revaluation on Changes Total Comprehensive Income Transfers from/(to) Reserves June at 30 2014 as Balance notes. accompanying the This with conjunction statement in read be to is
33 CITY OF KALGOORLIE-BOULDER STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE 2014
NOTE 2014 2014 2013 $ Budget $ Cash Flows From Operating Activities $ Receipts Rates 21,638,966 21,756,301 21,491,744 Operating Grants, Subsidies and Contributions 5,819,399 6,738,313 6,972,741 Income from Property 3,426,121 3,288,981 Fees and Charges 25,902,277 27,352,878 25,973,678 Interest Earnings 1,581,865 1,585,869 1,959,647 Goods and Services Tax 4,840,635 0 4,148,128 Other Revenue 478,538 9,641,698 551,886 63,687,801 67,075,059 64,386,805 Payments Employee Costs (25,088,328) (24,434,614) (23,144,089) Materials and Contracts (22,145,372) (20,804,677) (17,410,928) Utility Charges (3,545,834) (3,168,850) (3,301,494) Council Contributions (1,597,383) (1,807,074) (1,592,446) Interest Expenses (244,826) (337,675) (1,149,425) Insurance Expenses (1,396,142) (1,188,170) (219,777) Goods and Services Tax (4,386,836) 0 (4,446,876) Other Expenditure (1,212,820) (2,029,187) (1,249,900) (59,617,541) (53,770,247) (52,514,935) Net Cash Provided By (Used In) Operating Activities 13(b) 4,070,260 13,304,812 11,871,870
Cash Flows from Investing Activities Payments for Development of Land Held for Resale (148,052) (1,180,000) (89,840) Payments for Purchase of Property, Plant & Equipment (9,939,738) (55,834,740) (11,048,192) Payments for Construction of Infrastructure (7,261,451) (15,292,079) (9,224,224) Non-Operating Grants, Subsidies and Contributions 3,836,938 41,591,582 8,160,244 Proceeds from Sale of Fixed Assets 1,170,653 2,455,000 991,329 Net Cash Provided by (Used in) Investment Activities (12,341,650) (28,260,237) (11,210,683)
Cash Flows from Financing Activities Repayment of Debentures (1,047,746) (1,047,750) (860,010) Repayment of Finance Leases 0 (96,421) 0 Proceeds from Self Supporting Loans 97,916 63,841 74,806 Proceeds from New Debentures 4,356,539 5,281,539 2,524,416 Net Cash Provided By (Used In) Financing Activities 3,406,709 4,201,209 1,739,212
Net Increase (Decrease) in Cash Held (4,864,681) (10,754,216) 2,400,399 Cash at Beginning of Year 31,839,744 30,024,188 29,439,345 Cash and Cash Equivalents at the End of the Year 13(a) 26,975,063 19,269,972 31,839,744
This statement is to be read in conjunction with the accompanying notes.
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Page 8 CITY OF KALGOORLIE-BOULDER RATE SETTING STATEMENT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2014 2013 NOTE Actual Budget Actual $ $ $ Revenue Governance 767,674 5,704,783 3,813,206 General Purpose Funding 2,639,609 1,946,850 4,644,730 Law, Order, Public Safety 383,570 365,350 475,895 Health 428,766 434,190 412,299 Education and Welfare 1,490,858 1,443,520 1,501,826 Housing 49,671 61,500 53,073 Community Amenities 12,758,747 13,367,593 11,961,517 Recreation and Culture 8,250,213 46,355,236 11,226,688 Transport 11,777,965 13,992,503 9,495,764 Economic Services 1,985,678 2,785,955 1,740,924 Other Property and Services 1,740,645 2,567,056 1,924,591 42,273,396 89,024,536 47,250,513 Expenses Governance (3,894,511) (3,037,547) (2,725,601) General Purpose Funding (791,093) (704,446) (1,006,950) Law, Order, Public Safety (1,592,852) (1,466,515) (1,207,523) Health (1,198,273) (1,423,784) (1,365,316) Education and Welfare (2,487,939) (2,493,252) (2,530,866) Housing (37,658) (60,000) (41,825) Community Amenities (11,769,078) (12,953,406) (12,517,090) Recreation and Culture (21,671,361) (20,272,954) (20,278,468) Transport (14,893,100) (18,748,050) (14,619,186) Economic Services (4,907,511) (3,178,101) (2,593,977) Other Property and Services (2,517,518) (1,201,789) (3,455,377) (65,760,894) (65,539,844) (62,342,179) Net Result Excluding Rates (23,487,498) 23,484,692 (15,091,666)
Adjustments for Cash Budget Requirements:
Decrement from Revaluation of Light Vehicles 0 0 38,514 (Profit)/Loss on Asset Disposals 20 1,038,010 (102,654) 144,145 Movement in Deferred Pensioner Rates (Non-Current) (20,815) 0 (6,233) Movement in Employee Benefit Provisions (Non-current) (133,252) 0 311,298 Depreciation and Amortisation on Assets 2(a) 10,457,943 10,392,330 9,740,657 Capital Expenditure and Revenue Purchase Land Held for Resale (148,052) (1,180,000) (89,840) Purchase Property, Plant & Equipment 6(a) (9,939,738) (55,834,741) (11,048,192) Purchase Infrastrucutre Assets 7(a) (7,261,451) (15,292,078) (9,224,224) Proceeds from Disposal of Fixed Assets 20 1,170,653 2,455,000 991,329 Repayment of Debentures 21(a) (1,047,746) (1,047,649) (860,010) Proceeds from New Debentures 21(a) 4,356,539 5,281,539 2,524,416 Proceeds from Self Supporting Loans 97,916 63,841 74,806 Transfers to Reserves (Restricted Assets) 11 (1,919,061) (1,696,869) (5,838,867) Transfers from Reserves (Restricted Assets) 11 4,336,383 9,740,454 6,144,740
ADD Surplus/(Deficit) July 1 B/Fwd 22(b) 1,227,138 2,000,000 2,229,407 LESS Surplus/(Deficit) June 30 C/Fwd 22(b) 418,357 20,165 1,227,138
Total Amount Raised from General Rate 22(a) (21,691,389) (21,756,300) (21,186,858)
This statement is to be read in conjunction with the accompanying notes.
35 Page 9 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation The financial report comprises general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material accounting policies which have been adopted in the preparation of this financial report are presented below and have been consistently applied unless stated otherwise.
Except for cash flow and rate setting information, the report has also been prepared on the accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities.
Critical Accounting Estimates The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The Local Government Reporting Entity All Funds through which the Council controls resources to carry on its functions have been included in the financial statements forming part of this financial report.
In the process of reporting on the local government as a single unit, all transactions and balances between those Funds (for example, loans and transfers between Funds) have been eliminated.
All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those monies appears at Note 19 to these financial statements.
(b) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows.
36
Page 10 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks and other short term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts.
Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial position.
(d) Trade and Other Receivables Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods sold and services performed in the ordinary course of business.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.
Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.
(e) Inventories
General Inventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Land Held for Sale Land held for development and sale is valued at the lower of cost and net realisable value. Cost includes the cost of acquisition, development, borrowing costs and holding costs until completion of development. Finance costs and holding charges incurred after development is completed are expensed.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.
Land held for sale is classified as current except where it is held as non-current based on Council’s intentions to release for sale.
37 Page 11 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets Each class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Mandatory Requirement to Revalue Non-Current Assets Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the measurement of non-current assets at Fair Value became mandatory.
The amendments allow for a phasing in of fair value in relation to fixed assets over three years as follows:
(a) for the financial year ending on 30 June 2013, the fair value of all of the assets of the local government that are plant and equipment; and (b) for the financial year ending on 30 June 2014, the fair value of all of the assets of the local government - (i) that are plant and equipment; and (ii) that are - (I) land and buildings; or- (II) Infrastructure; and (c) for a financial year ending on or after 30 June 2015, the fair value of all of the assets of the local government.
Thereafter, in accordance with the regulations, each asset class must be revalued at least every 3 years.
In 2013, Council commenced the process of adopting Fair Value in accordance with the Regulations.
Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been made in the financial report as necessary.
Land Under Control In accordance with Local Government (Financial Management) Regulation 16(a), the Council was required to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course, showground, racecourse or other sporting or recreational facility of State or Regional significance.
Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were then classified as Land and revalued along with other land in accordance with the other policies detailed in this Note.
Whilst they were initially recorded at cost, fair value at the date of acquisition was deemed cost as per AASB 116.
Consequently, these assets were initially recognised at cost but revalued along with other items of Land and Buildings at 30 June 2014.
38 Page 12 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Initial Recognition and Measurement between Mandatory Revaluation Dates All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory measurement framework detailed above.
In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads.
Individual assets acquired between initial recognition and the next revaluation of the asset class in accordance with the mandatory measurement framework detailed above, are carried at cost less accumulated depreciation as management believes this approximates fair value. They will be subject to subsequent revaluation at the next anniversary date in accordance with the mandatory measurement framework detailed above.
Revaluation 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 asset are recognised against revaluation surplus directly in equity. All other decreases are recognised in profit or loss.
Transitional Arrangements During the time it takes to transition the carrying value of non-current assets from the cost approach to the fair value approach, the Council may still be utilising both methods across differing asset classes.
Those assets carried at cost will be carried in accordance with the policy detailed in the Initial Recognition section as detailed above.
Those assets carried at fair value will be carried in accordance with the Revaluation Methodology section as detailed above.
Early Adoption of AASB 13 - Fair Value Measurement Whilst the new accounting standard in relation to Fair Value, AASB 13 – Fair Value Measurement only become applicable for the year ended 30 June 2014 (in relation to Council), given the legislative need to commence using Fair Value methodology in the previous reporting period (year ended 30 June 2013) the Council chose to early adopt AASB 13
As a consequence, the principles embodied in AASB 13 - Fair Value Measurement have been applied to the previous reporting period (year ended 30 June 2013).
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Page 13 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Land Under Roads In Western Australia, all land under roads is Crown Land, the responsibility for managing which, is vested in the local government.
Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. This accords with the treatment available in Australian Accounting Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail.
Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.
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Page 14 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Depreciation The depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways: a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount; or b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.
Major depreciation periods used for each class of depreciable asset are:
Buildings 30 to 50 years Temporary Buildings 20 years Furniture and Equipment 4 to 10 years Plant and Equipment 5 to 15 years Sealed roads and streets formation not depreciated pavement 50 years seal - bituminous seals 20 years - asphalt surfaces 25 years Gravel roads formation not depreciated pavement 50 years Formed roads formation not depreciated pavement 50 years Footpaths - slab 40 years Sewerage piping 100 years Water supply piping and drainage systems 75 years
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income in the period in which they arise.
When revalued assets are disposed of, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus.
Capitalisation Threshold Expenditure on items of equipment under $2,000 is not capitalised. Rather, it is recorded on an asset inventory listing.
41 Page 15 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities When performing a revaluation, the Council uses a mix of both independent and management valuations using the following as a guide:
Fair Value is the price that Council would receive to sell the asset or would have to pay to transfer a liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset (i.e. the market with the greatest volume and level of activity for the asset or, in the 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 receipts from the sale of the asset after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
Fair Value Hierarchy AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurement into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:
Level 1 Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
Valuation techniques The Council selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Council are consistent with one or more of the following valuation approaches:
Market approach Valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.
Page42 16 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities (Continued)
Valuation techniques (Continued)
Income approach Valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.
Cost approach Valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
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 Council gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability and considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.
As detailed above, the mandatory measurement framework imposed by the Local Government (Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to be revalued at least every 3 years.
(h) Financial Instruments
Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the Council becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Council commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately.
Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or at cost.
Amortised cost is calculated as:
(a) the amount in which the financial asset or financial liability is measured at initial recognition;
(b) less principal repayments and any reduction for impairment; and
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest rate method.
The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. 43 Page 17 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Classification and Subsequent Measurement (Continued)
(i) Financial assets at fair value through profit and loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss. Assets in this category are classified as current assets.
(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
Loans and receivables are included in current assets where they are expected to mature within 12 months after the end of the reporting period.
(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or determinable payments that the Council has the positive intention and ability to hold to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
Held-to-maturity investments are included in non-current assets, where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as non- current.
(iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in other comprehensive income (except for impairment losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.
Available-for-sale financial assets are included in current assets, where they are expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as non-current.
(v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
44 Page 18 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Impairment A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which will have an impact on the estimated future cash flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.
Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the Council no longer has any significant continual involvement in the risks and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of the consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
(i) Impairment of Assets In accordance with Australian Accounting Standards the Council's assets, other than inventories, are assessed at each reporting date to determine whether there is any indication they may be impaired.
Where such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount.
Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another standard (e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard.
For non-cash generating assets such as roads, drains, public buildings and the like, value in use is represented by the depreciated replacement cost of the asset.
(j) Trade and Other Payables Trade and other payables represent liabilities for goods and services provided to the Council prior to the end of the financial year that are unpaid and arise when the Council becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, are recognised as a current liability and are normally paid within 30 days of recognition.
Page45 19 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Employee Benefits Short-Term Employee Benefits Provision is made for the Council’s obligations for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.
The Council’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position. The Council’s obligations for employees’ annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.
Other Long-Term Employee Benefits Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations or service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur.
The Council’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Council does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current provisions.
(l) Borrowing Costs Borrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset until such time as the asset is substantially ready for its intended use or sale.
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Page 20 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Provisions Provisions are recognised when the Council has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(n) Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not legal ownership, are transferred to the Council, are classified as finance leases.
Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over the life of the lease term.
(o) Investment in Associates An associate is an entity over which the Council has significant influence. Significant influence is the power to participate in the financial operating policy decisions of that entity but is not control or joint control of those policies. Investments in associates are accounted for in the financial statements by applying the equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Council’s share of net assets of the associate. In addition, the Council’s share of the profit or loss of the associate is included in the Council’s profit or loss.
The carrying amount of the investment includes, where applicable, goodwill relating to the associate. Any discount on acquisition, whereby the Council’s share of the net fair value of the associate exceeds the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.
Profits and losses resulting from transactions between the Council and the associate are eliminated to the extent of the Council’s interest in the associate.
When the Council’s share of losses in an associate equals or exceeds its interest in the associate, the Council discontinues recognising its share of further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate subsequently makes profits, the Council will resume recognising its share of those profits once its share of the profits equals the share of the losses not recognised.
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Page 21 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) Interests in Joint Arrangements Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities are required.
Separate joint venture entities providing joint venturers with an interest to net assets are classified as a joint venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity method of accounting.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the arrangement. The Council’s interests in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements. Information about the joint ventures is set out in Note 16.
(q) Rates, Grants, Donations and Other Contributions Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions.
Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates.
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to 'those undischarged conditions are disclosed in Note 2(c). That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operations for the current reporting period.
(r) Superannuation The Council contributes to a number of Superannuation Funds on behalf of employees. All funds to which the Council contributes are defined contribution plans.
(s) Current and Non-Current Classification In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. In the case of liabilities where the Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for sale where it is held as non-current based on the Council’s intentions to release for sale.
(t) Rounding Off Figures All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest dollar.
48 Page 22 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
1. SUMMARY SIGNIFICANT ACCOUNTING POLICIES (Continued)
(u) Comparative Figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year.
When the Council applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statement, an additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements is presented.
(v) Budget Comparative Figures Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the original budget estimate for the relevant item of disclosure.
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Page 23 Impact Nil – The objective of this Standard is to improve and simplify the the improve simplify to is and The – of Standard this objective Nil effect give the standard to -this Theembodied in Nil revisions consequential changes arising from the issuance of AASB 9 which is from is arising changes which 9 consequential issuance of the AASB approach for measurement classification and assets of financial of nature the Given requirementsthe 139. compared of AASB with standard the anticipated not is it assets financial of Council, the the material effect. any have will materialnot anticipated effect any to have on the Council (refer (i) above). (1) Applicable Applicable 1 January 2018 1 January 2018 1 January Page 24 CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR December 2013 December 2013 Issued / CompiledIssued NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND Title AASB 9 – Financial Instruments– Financial 9 AASB AASB 2010 -7 Amendments Accounting to Australian from arising Standards 9 AASB (December 2010) 102, 101, 7, 5, 4, 3, 1, [AASB 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] (ii) (i) (i) SIGNIFICANT ACCOUNTING POLICIES (Continued) POLICIES ACCOUNTING SIGNIFICANT The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for dates futureperiods, reporting application mandatory have that Interpretations and numberStandards has issued a amended and The Accounting of AASB new Council. the to some relevant are of which yet not have which and periods future to reporting Management's applicable assessment Council, the to amended and pronouncementsare relevant of new that the been adopted are set out as follows: New Accounting Standards and Interpretations for Application in Future Periods and Interpretations Standards for Application New Accounting 1. (w) 50 Impact This Standard adds application guidance to AASB 132: Financial Financial 132: AASB to guidance This application adds Standard some of offsetting the of criteria AASB applying in identified Consequential changes to various standards arising from standards arising various to changes the Consequential issuance of 10, AASB 11,12, 127 and 128. impact significant a Council. on have to expected not It is inconsistencies Instruments: address to potential Presentation legally has a meaning the of “currently clarifying including 132, ofenforceable set-off” right some that and gross settlement settlement. net to equivalent considered be systems may impact the significantly to expected This not is Standard statements. financial Council’s (1) Applicable Applicable 1 January 2014 1 January 1 January 2014 1 January Page 25 CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR June 2012 December 2012 Issued / CompiledIssued NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND Title AASB 2011 - 7 Amendments - 7 2011 AASB Australian to from arising Standards Accounting the Arrangement Joint and Consolidation [Not-For-ProfitStandards entities] [AASB 1, 3, 5, 7, 9, 2009-11, 101, 107, 112 118, 121, 124, 131, 132, 133, 138, 139, 16 9, 5, Interpretations and 1038 & 1023 & 17] Amendments 2012-3: AASB Australian to - Offsetting Standards Accounting Financial Liabilities Assets Financial and [AASB 132] (iii) (iv) SIGNIFICANT ACCOUNTING POLICIES (Continued) POLICIES ACCOUNTING SIGNIFICANT New Accounting Standards and Interpretations for Application in Future(Continued) Periods and Interpretations Standards for Application New Accounting 1. (w) 51 Impact This standard adds Appendix E to AASB 10 to provide provide to 10 AASB to E This Appendix adds standard implementation for Not-for-Profit guidance regarding entities of makes standard A this Part corrections to editorial various Standards. Accounting Australian C ofPart makes standard this amendments consequential to numerousand 9 amends standards and other AASB the This makes standard amendments includes and 136 AASB to value present information when requirements disclose additional to measure to are used amounttechniques recoverable of the impaired assets. impact significant a Council. on have to expected not It is from criteria control of not-for-profit perspective the entities. impact significant a Council. on have to expected not It is in 1031 references of deletes standard B AASB this Part to of the advance in Standards Accounting Australian various 1031. of AASB withdrawal financial to relating permissions applications certain around fair reissued at value. liabilities or reference editorial to bulkAs either the of related changes impact significant a on have to expected not is changes it Council. (1) Applicable Applicable 1 January 2014 1 January 1 January 2014 1 January Refer Title column Page 26 CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR June 2013 October 2013 December 2013 Issued / CompiledIssued NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND Title Applicable to reporting periods commencing periods reporting date. to or after on given the Applicable AASB 2013 - 3: Amendments to 136 AASB - AmountDisclosuresRecoverable for Non- Assets Financial Amendments 2013-8: AASB Australian to Australian – Standards Accounting Implementation for Guidance Not-for-Profit Entities Structured and Control – Entities [AASB 10, 12 1049] & Amendments 2013-9: AASB Australian to Conceptual – Standards Accounting Financial and Framework, Materiality Instruments Conceptual A Part dates: [Operative Framework December20 – B Part 2013; C Part 2014; 1 January – Materiality 2015] InstrumentsFinancial 1 January – Notes: (1) (v) (vi) (vii) New Accounting Standards and Interpretations for Application in Future(Continued) Periods and Interpretations Standards for Application New Accounting SIGNIFICANT ACCOUNTING POLICIES (Continued) POLICIES ACCOUNTING SIGNIFICANT 1. (w) 52 AASB 2012 - 2 AASB 2012 - 3 AASB 2012 - 5 AASB 2012 - 10 Page 27 CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR AASB 128 AASB 2011 - 7 AASB 2011 - 9 AASB 2011 - 10 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND AASB 10 AASB 11 AASB 12 AASB 119 AASB 127 SIGNIFICANT ACCOUNTING POLICIES (Continued) POLICIES ACCOUNTING SIGNIFICANT During the current year, the Council adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, became were which mandatory Interpretations and Standards Accounting Australian revised and of new the all adopted Council the current the year, During operations. its to applicable were which and standards were: revised and These new impact accounting significant a the on have not did minimal a as they practices had ofMost Council ofreporting standards adopted the and effect the accounting the on measurement and recognition presentation, with consistency ensure help to revisions were nature, in editorial largely applicable, not either practicesor reporting or were operations. to relevant not topics criteria of to IFRSs or related Adoption of Standards New andAdoption Revised Accounting 1. (x)
53 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2. REVENUE AND EXPENSES 2014 2013 $ $ (a) Net Result
The Net Result includes:
(i) Charging as an Expense:
Auditors Remuneration - Audit of the annual financial report 44,500 37,400 - Audit of the Acquittals 17,950 18,050 - Assistance with the finalisation of the annual financial report 9,000 7,900
Depreciation Buildings 1,355,599 2,118,272 Construction Other Than Buildings 321,253 294,601 Furniture and Equipment 971,166 375,592 Plant and Equipment 1,457,790 935,892 Light Vehicles 294,250 364,655 Investment Properties 236,358 187,875 Roads 3,523,440 3,374,036 Laneways 1,324 1,324 Bus Shelters 11,311 11,311 Drainage 105,459 103,365 Parking Areas 57,925 49,678 Footpaths 375,720 340,879 Street Lights 12,961 12,962 Parks & Reserves 324,769 174,482 Sewerage 907,793 895,938 Effluent 187,315 186,531 Airport 313,510 313,264 10,457,943 9,740,657 Interest Expenses (Finance Costs) Debentures (refer Note 21(a)) 252,898 217,487 252,898 217,487 Rental Charges - Operating Leases 327,699 275,312 327,699 275,312
(ii) Crediting as Revenue: 2014 2014 2013 Actual Budget Actual $ $ $ Interest Earnings Investments - Reserve Funds 1,041,835 956,869 1,312,001 - Other Funds 120,940 250,000 258,912 Other Interest Revenue (refer note 26) 419,091 379,000 388,734 1,581,865 1,585,869 1,959,647
54 Page 28 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective
The City of Kalgoorie-Boulder is dedicated to providing high quality services to the community the various service orientated programs which it has established.
COMMUNITY VISION
The Shire will endeavour to provide the community services and facilities to meet the needs of the members of the community and enable them to enjoy a pleasant and healthy way of life.
Council operations as disclosed in these financial statements encompass the following service orientated activities/programs.
Objective: To provide a decision making process for the efficient allocation of scarce resources.
Activities: Includes the activities of members of council and the administrative support available to the council for the 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.
GENERAL PURPOSE FUNDING Objective: To collect revenue to allow for the provision of services.
Activities: Rates, general purpose government grants and interest revenue.
LAW, ORDER, PUBLIC SAFETY Objective: To provide services to help ensure a safer and environmentally conscious community.
Activities: Supervision and enforcement of various local laws relating to fire prevention, animal control and other aspects of public safety including emergency services.
HEALTH Objective: To provide an operational framework for environmental and community health.
Activities: Inspection of food outlets and their control, provision of meat inspection services, noise control and waste disposal compliance.
EDUCATION AND WELFARE Objective: To provide services to disadvantaged persons, the elderly, children and youth
Activities: Maintenance of child minding centre, playgroup centre, senior citizen centre and aged care centre. Provision and maintenance of home and community care programs and youth services.
HOUSING Objective: To provide and maintain elderly residents housing.
Activities: Provision and maintenance of elderly residents housing. Page55 29 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective (Continued)
COMMUNITY AMENITIES Objective: To provide services required by the community.
Activities: Rubbish collection services, operation of rubbish disposal sites, litter control, construction and maintenance of urban storm water drains, protection of the environment and administration of town planning schemes, cemetery and public conveniences.
RECREATION AND CULTURE Objective: To establish and effectively manage infrastructure and resource which will help the social well being of the community.
Activities: Maintenance of public halls, civic centres, aquatic centre, beaches, recreation centres and various sporting facilities. Provision and maintenance of parks, gardens and playgrounds. Operation of library, museum and other cultural facilities.
TRANSPORT Objective: To provide safe, effective and efficient transport services to the community
Activities: Construction and maintenance of roads, streets, footpaths, depots, cycleways, parking facilities and traffic control. Cleaning of streets and maintenance of street trees, street lighting etc.
ECONOMIC SERVICES Objective: To help promote the shire and its economic wellbeing.
Activities: Tourism and area promotion including the maintenance and operation of a caravan park. Provision of rural services including weed control, vermin control and standpipes. Building Control.
OTHER PROPERTY AND SERVICES Objective: To monitor and control council’s overheads operating accounts.
Activities: Private works operation, plant repair and operation costs and engineering operation costs.
56 Page 30 0 0 0 0 0 8,715 5,669 22,763 10,000 23,632 $ 253,818 244,942 2,472,562 6,810,488 3,768,387 Closing Balance 30/06/14 0 0 0 0 0 (3) (7,840) (5,044) $ (16,486) (88,127) (660,000) (138,469) (101,955) 2013/14 (1,395,709) (1,043,452) (3,457,082) Expended 0 0 0 (2) 628 615 111 2,492 10,000 23,632 16,555 $ 392,287 674,341 141,000 1,499,007 2,760,668 2013/14 Received Received 0 0 0 0 0 0 (1) 4,933 21,527 $ 108,398 101,340 614,053 1,633,555 1,395,709 7,506,902 3,627,387 Closing 30/06/13 Balance 0 0 0 0 0 0 0 0 (3) $ (97,740) (41,927) (212,760) (881,167) (517,008) (325,843) 2012/13 (2,076,445) Expended 0 0 0 0 0 (2) 6,781 1,542 60,945 45,709 Page 31 21,527 17,008 $ 101,340 939,896 119,331 1,314,079 2012/13 Received Received 0 0 0 0 0 0 0 (1) 45,318 $ CITY OF KALGOORLIE-BOULDER CITY 199,357 500,000 881,167 1,785,370 1,350,000 8,269,268 3,508,056 1/07/12 FOR THE YEAR ENDED JUNE 2014 30TH FOR THE YEAR Opening Balance NOTES TO AND FORMING PART OF THE FINANCIAL REPORT OF FORMING THE FINANCIAL NOTES PART TO AND 8 8 5 7 7 8 11 13 13 11 11 12 13 12 Activity Function/ Grant/Contribution - Grants/contributions recognised as revenue in a previous reporting period which were not expended at the close of the previous reporting period. - New grants/contributions which were recognised as revenues during the reporting period and which expended in the been fully manner had not yet specified - Grants/contributions which had been recognised as revenues in a previous reporting period or received in the current reporting period and which were Conditions Over Grants/Contributions Over Conditions REVENUE AND EXPENSES (Continued) EXPENSES AND REVENUE Roads to Intermodal Recovery Hub FaHCSIA Boulder Camp Contribution Indigenous Environmental Health Golf Course Burt Street Heritage Grant Boulder United (BUFS) Society Friendly Sporting Finlayson ComplexRay HACC Bus Roadwise Roads to Recovery Cat Act Implementation Grant AWARE: Training in Regional WA Risk Emergency AWARE: Community CEEPGoldfields Esp Project Regional Energy Total Notes: (1) (2) the contributor. by (3) expended in the current reporting period in the manner specified the contributor. by 2. (c) (c) 57 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
Note 2014 2013 $ $ 3. CASH AND CASH EQUIVALENTS
Cash on Hand - Unrestricted 17,720 11,320 Cash at Bank - Municipal 738,289 3,192,048 Cash at Bank - Reserve - Restricted 26,219,054 28,636,376 26,975,063 31,839,744
Cash at Bank - Municipal Cash at Bank - Municipal - Unrestricted (1,377,751) 1,085,323 Cash at Bank - Restricted (Unspent Loans) 2,116,040 1,492,672 Cash at Bank - Restricted (Unspent Grants) 0 614,053 738,289 3,192,048 The following restrictions have been imposed by regulations or other externally imposed requirements:
Leave Reserve 11 759,744 731,736 Plant Reserve 11 257,521 1,701,178 Building Reserve 11 1,852,901 2,022,600 Computer Facilities 11 1,214,387 1,171,299 Sewerage Construction Reserve 11 257,302 248,184 Recreation Reserve 11 3,133,461 3,582,344 Parking Facilities Reserve 11 760,049 808,892 Senior Citizens Reserve 11 786,653 758,842 Airport Movement Area Reserve 11 5,428,412 5,461,683 Oasis Reserve 11 724,186 705,077 Aerodrome 11 2,884,097 2,782,275 Valuations Equalisation Reserve 11 125,042 120,432 Insurance Equalisation Reserve 11 461,941 444,912 Town Halls Refurbishment Reserve 11 89,330 86,037 Waste Initiatives Reserve 11 92,264 88,862 Airport and City Promotions 11 576,915 565,404 Staff Retention and Attraction 11 4,361 463,769 Unspent Grants 2(c) 6,810,488 6,892,849 26,219,054 28,636,375
4. TRADE AND OTHER RECEIVABLES
Current Rates Outstanding 1,751,909 1,740,779 Provision for Doubtful Debts (494,914) (476,252) Sundry Debtors 5,888,952 4,735,540 Provision for Doubtful Debts (70,418) (184,404) Prepayments 66,745 104,649 GST Receivable 229,397 683,196 Loans - Clubs/Institutions 63,272 70,435 7,434,943 6,673,943 Non-Current Rates Outstanding - Pensioners 393,396 372,581 Loans - Clubs/Institutions 303,133 393,886 696,529 766,467
Page 3258 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
5. INVENTORIES
Current Fuel and Materials 59,170 62,732 Goldfields Oasis 32,827 31,324 Golf Course 68,522 0 Goldfields Art Centre 2,967 0 Land Held for Resale - Cost Cost of Acquisition 0 0 Development Costs 451,180 303,128 614,666 397,184
6. PROPERTY, PLANT AND EQUIPMENT 2014 2013 $ $ Council Controlled Land at: - Management Valuation 2014 8,109,417 0 - Cost 0 8,784,521 8,109,417 8,784,521
Freehold Land at: - Independent Valuation 2014 22,271,120 0 - Cost 0 811,732 22,271,120 811,732
Total Land 30,380,537 9,596,253
Buildings at: - Independent Valuation 2014 1,579,500 0 - Management Valuation 2014 74,490,387 0 - Cost 0 74,870,532 Less: Accumulated Depreciation 0 (21,218,863) 76,069,887 53,651,669
Total Buildings 76,069,887 53,651,669
Total Land and Buildings 106,450,424 63,247,922
Work in Progress at: - Cost 812,361 643,169 Furniture and Equipment at: - Management Valuation 2013 1,911,379 1,939,738 - Additions after Valuation - Cost 535,141 0 Less Accumulated Depreciation (585,606) 0 1,860,914 1,939,738
Plant and Equipment at: - Management Valuation 2013 1,607,079 3,832,071 - Independant Valuation 2013 2,480,700 2,983,200 - Additions after Valuation - Cost 8,314,311 0 Less Accumulated Depreciation (1,297,222) (217,225) 11,104,868 6,598,046
59 Page 33 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
6. PROPERTY, PLANT AND EQUIPMENT (Continued) 2014 2013 $ $ Light Vehicles at: - Management Valuation 2013 1,853,520 2,085,070 - Independant Valuation 2013 228,000 254,000 - Additions after Valuation - Cost 823,211 0 Less Accumulated Depreciation (307,585) (15,283) 2,597,146 2,323,787
122,825,713 74,752,662
Land and Buildings: The City’s land and buildings were revalued at 30 June 2014 by independent valuer and Management. In relation to land, valuations were made on the basis of observable open market values of similar assets, adjusted for condition and comparability, at their highest and best use (Level 2 inputs in the fair value hierarchy) unless there are some restrictions or other factors associated with the land which resulted in the land being deemed to be valued using Level 3 inputs. These restrictions and other factors included zoning, area, usage or topography had resulted in a reduced degree of confidence when applying a typical valuation method based on direct comparable sales evidence. The value of these lands were derived by making the necessary adjustments to the closest available market evidence in order to reflect the current (highest and best) use to which the land is zoned. Given the significance of the Level 3 inputs into the overall fair value measurement these lands are deemed to have been valued using Level 3 inputs. With regard to non-specialised buildings, valuations were made on the basis of observable open market values or similar assets, adjusted for condition and comparability, at their highest and best use (Level 2 inputs in the fair value hierarchy). As for specialised buildings, they were valued having regard for their current replacement cost utilising both observable and unobservable inputs being construction costs based on recent contract prices, current condition (Level 2 inputs), residual values and remaining useful life assessments (Level 3 inputs). Given the significance of the Level 3 inputs into the overall fair value measurement, these specialised building assets are deemed to have been valued using Level 3 inputs. These 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. With regard to land vested in and under the control of Council, as land is Crown Land restricted as to usage, it is not possible for an alternative usage to be considered when arriving at the fair value. In addition, due to its nature, any significant value attributable directly to the land would likely be offset by the need to return value to the Crown before any restriction is lifted, thus reducing the net fair value to nil. Consequently, it was valued having regard for the current replacement cost of the improvements on the land to allow for its current restricted usage. These included both observable and unobservable inputs being construction costs based on recent contract prices, current condition (Level 2 inputs), residual values and remaining useful life assessments (Level 3 inputs). Given the significance of the Level 3 inputs into the overall fair value measurement, this land vested in and under the control of Council is deemed to have been valued using Level 3 inputs. These 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. The revaluation of these assets resulted in an overall increase of $51,164,626 in the net value of the City’s land and buildings. All of this increase was credited to the revaluation surplus in the City’s equity (refer Note 12 for further details) and was recognised as Changes on Revaluation of non- current Assets in the Statement of Comprehensive Income. 60 Page 34 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
6. PROPERTY, PLANT AND EQUIPMENT (Continued)
Plant and Equipment: Furniture and Equipment: Light Vehicles:
The City's plant and equipment, furniture and equipment and light vehicles were revalued in 2013 as part of the mandatory requirements embodied in Local Government (Financial Management) Regulation 17A.
Whilst the additions since that time are shown at cost, given they were acquired at arms length and any accumulated depreciation reflects the usage of service potential, it is considered the recorded written down value approximates fair value. Thus, the value is considered in accordance with Local Government (Financial Management) Regulation 17A(2) which requires these assets to be shown at fair value.
They will be revalued during the year ended 30 June 2016 in accordance with the mandatory asset measurement framework detailed at Note 1(f).
61
Page 35 75,500 812,361 6,809,522 7,650,951 8,109,417 1,860,914 4,295,346 2,597,146 $ 30,380,537 14,620,169 75,994,387 76,069,887 at the at 106,450,424 122,825,713 Amount Carrying End of Year of End 0 0 0 0 0 (1,867) $ (623,743) (971,166) (834,047) (294,250) (1,353,732) (1,355,599) (1,355,599) (4,078,805) (Expense) Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ (Losses)/ Reversals Impairment 0 0 0 0 0 4,552 $ (675,104) 7,387,524 20,749,284 30,410,790 14,036,864 30,415,342 51,164,626 51,164,626 Increments/ (Decrements) Revaluation 0 0 0 0 0 0 (1,986) (1,986) $ (817,716) (333,016) (1,055,945) (1,055,945) (1,057,931) (2,208,663) (Disposals) 0 0 0 35,000 35,000 $ 169,192 506,782 3,107,622 1,470,014 3,107,622 3,142,622 8,374,109 1,455,161 1,630,338 Page 36 Additions 0 0 0 0 0 CITY OF KALGOORLIE-BOULDER 1,986 1,986 385,560 (69,836) $ FOR ENDED 2014 THE30TH JUNE YEAR 3,197,276 (8,693,202) (8,693,202) (8,691,216) (5,178,216) Transfers NOTES TO AND FORMING PART OF THE FINANCIAL REPORTNOTES TO OF THE PART FORMING FINANCIAL AND 72,815 583,305 228,427 643,169 $ 9,596,253 8,784,521 1,939,738 3,832,071 2,765,975 2,323,787 53,578,854 53,651,669 63,247,922 74,752,662 at the at Balance Beginning of the Year of the (Level 3) (Level 2) (Level 3) (Level 3) (Level 2) (Level 3) (Level 2) (Level 2) (Level 3) PROPERTY, EQUIPMENT (Continued) PLANT AND Movementin the carrying amounts of each class the end and the beginning ofbetween plantand equipment property, of the currentfinancial year. Council Controlled Land Freehold Land Freehold Land Total Land Buildings Buildings Total Buildings Buildings and Land Total Work In Progress Furniture Equipment and Major Plantand Equipment Minor Plantand Equipment Light Vehicles Equipment and Plant Total Property, Movements in Carrying Amounts Carrying in Movements 6. (a)
62 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2013 7A. INFRASTRUCTURE $ $
Construction Other Than Buildings at: - Cost 16,823,626 13,358,136 Less: Accumulated Depreciation (5,079,791) (1,723,292) 11,743,835 11,634,844 Roads - Cost 182,341,798 176,176,505 Less Accumulated Depreciation (90,218,351) (86,694,911) 92,123,447 89,481,594 Laneways - Cost 66,206 66,206 Less Accumulated Depreciation (55,612) (54,288) 10,594 11,918 Bus Shelters - Cost 282,880 282,880 Less Accumulated Depreciation (247,162) (235,851) 35,718 47,029 Drainage - Cost 8,303,768 8,246,366 Less Accumulated Depreciation (3,564,481) (3,459,022) 4,739,287 4,787,344 Parking Areas - Cost 3,997,275 3,517,517 Less Accumulated Depreciation (603,638) (551,092) 3,393,637 2,966,425 Footpaths - Cost 15,720,378 14,406,740 Less Accumulated Depreciation (6,255,306) (5,900,439) 9,465,072 8,506,301 Street Lights - Cost 324,043 324,043 Less Accumulated Depreciation (138,731) (125,770) 185,312 198,273 Parks & Reserves - Cost 17,468,536 13,947,963 Less Accumulated Depreciation (2,213,065) (1,888,296) 15,255,471 12,059,667 Sewerage - Cost 42,688,491 42,688,491 Less Accumulated Depreciation (24,319,940) (23,412,147) 18,368,551 19,276,344 Effluent - Cost 8,510,699 8,440,563 Less Accumulated Depreciation (3,838,429) (3,651,114) 4,672,270 4,789,449 Airport - Cost 12,802,423 12,531,536 Less Accumulated Depreciation (8,583,506) (8,269,996) 4,218,917 4,261,540 Water Conservation at: - Cost 5,409,214 5,406,337 Less Accumulated Depreciation 0 0 5,409,214 5,406,337
169,621,325 163,427,065 63
Page 37 35,718 10,594 $ 185,312 at the 3,393,637 4,739,287 5,409,214 4,672,270 9,465,072 4,218,917 Amount Carrying 11,743,835 18,368,551 92,123,447 15,255,471 169,621,325 End of Year of End 0 (1,324) $ (12,961) (11,311) (57,925) (105,459) (321,253) (907,793) (187,315) (375,720) (324,769) (313,510) (6,142,780) (3,523,440) (Expense) Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ (Losses)/ Reversals Impairment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ (Disposals) 0 0 0 0 2,877 57,402 70,136 $ 110,936 134,758 243,637 560,525 270,887 7,261,451 5,810,293 Additions Page 38 0 0 0 0 0 0 0 0 $ 319,308 355,000 350,379 1,090,854 5,075,589 2,960,048 Transfers CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH JUNE 2014 JUNE 30TH ENDED YEAR THE FOR 11,918 47,029 $ 198,273 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT OF THE FORMING FINANCIAL NOTES PART TO AND 4,787,344 2,966,425 8,506,301 5,406,337 4,261,540 4,789,449 Balance as at the 11,634,844 12,059,667 19,276,344 89,481,594 Beginning of the Year the of 163,427,065 INFRASTRUCTURE (Continued)INFRASTRUCTURE Movement in the carrying amounts of in theMovement each carrying class of infrastructure theand the beginning end between of thecurrent financial year. Construction Other Than Building Laneways Bus Shelters Drainage Parking Areas Footpaths Street Lights Parks & Reserves Sewerage Water Conservation Total Movements in Carrying Amounts Airport Roads Effluent (a) 7A.
64 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014 2014 2013 $ $ 7B. INVESTMENT PROPERTY Land at: - Cost 0 49 - Independent Valuation 2014 3,405,000 3,405,000 49 Buildings at: - Cost 0 7,515,000 - Management Valuation 2014 1,250,000 0 - Independent Valuation 2014 7,955,000 0 Less Accumulated Depreciation 0 (3,006,000) 9,205,000 4,509,000
Total Investment Property 12,610,000 4,509,049
(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. Land Buildings Buildings (Level 2) (Level 2) (Level 3) Total $ $ $ $
Balance at the beginning of the year 49 3,644,342 864,658 4,509,049
Additions 0 1,565,629 0 1,565,629
Transfers 0 102,627 0 102,627
Revaluation - Increments 3,404,951 2,878,760 385,342 6,669,053
Depreciation (Expense) 0 (236,358) 0 (236,358)
Carrying amount at the end of year 3,405,000 7,955,000 1,250,000 12,610,000
Investment Property: The City’s investment property were revalued at 30 June 2014 by independent valuer. In relation to land and non-specialised buildings, valuations were made on the basis of observable open market values of similar assets, adjusted for condition and comparability, at their highest and best use (Level 2 inputs in the fair value hierarchy). With regard to specialised buildings, these were valued having regard for their current replacement cost utilising both observable and unobservable inputs being construction costs based on recent contract prices, current condition (Level 2 inputs), residual values and remaining useful life assessments (Level 3 inputs). Given the significance of the Level 3 inputs into the overall fair value measurement, these specialised building assets are deemed to have been valued using Level 3 inputs. These 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. The revaluation of these assets resulted in an overall increase of $6,669,053 in the net value of the City’s investment property. All of this increase was credited to the revaluation surplus in the City’s equity (refer Note 12 for further details) and was recognised as Changes on Revaluation of non- current Assets in the Statement of Comprehensive Income.
65 Page 39 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2013 $ $
8. TRADE AND OTHER PAYABLES
Current Sundry Creditors 7,227,690 8,197,928 Accrued Interest on Debentures 20,772 12,700 Accrued Salaries and Wages 614,565 424,532 Others 9,782 38,634 7,872,809 8,673,794
9. LONG-TERM BORROWINGS
Current Secured by Floating Charge Debentures 1,357,288 1,047,750 1,357,288 1,047,750
Non-Current Secured by Floating Charge Debentures 7,232,639 4,233,384 7,232,639 4,233,384
Additional detail on borrowings is provided in Note 21.
10. PROVISIONS
Analysis of Total Provisions
Current Provision for Carbon Tax 85,000 0 Provision for Annual Leave 1,758,288 1,925,010 Provision for Long Service Leave 1,165,620 1,310,624 3,008,908 3,235,634
Non-Current Provision for Long Service Leave 484,382 390,908 484,382 390,908
Provision for Provision for Annual Long Service Leave Leave Total $ $ $
Opening balance at 1 July 2013 1,925,010 1,701,532 3,626,542 Amount used (166,722) (51,530) (218,252) Balance at 30 June 2014 1,758,288 1,650,002 3,408,290
66 Page 40 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2014 2013 $ Budget $ $ 11. RESERVES - CASH BACKED
(a) Leave Reserve Opening Balance 731,736 773,894 840,785 Amount Set Aside / Transfer to Reserve 28,008 39,355 37,411 Amount Used / Transfer from Reserve 0 0 (146,460) 759,744 813,249 731,736
(b) Plant Reserve Opening Balance 1,701,178 1,690,975 2,241,008 Amount Set Aside / Transfer to Reserve 58,343 667,844 1,443,710 Amount Used / Transfer from Reserve (1,502,000) (2,055,940) (1,983,540) 257,521 302,879 1,701,178
(c) Building Reserve Opening Balance 2,022,600 2,014,007 1,463,092 Amount Set Aside / Transfer to Reserve 74,099 42,187 559,508 Amount Used / Transfer from Reserve (243,798) (400,000) 0 1,852,901 1,656,194 2,022,600
(d) Computer Facilities Opening Balance 1,171,299 1,164,902 1,231,401 Amount Set Aside / Transfer to Reserve 43,088 45,000 54,898 Amount Used / Transfer from Reserve 0 0 (115,000) 1,214,387 1,209,902 1,171,299
(e) Sewerage Construction Reserve Opening Balance 248,184 243,790 859,944 Amount Set Aside / Transfer to Reserve 9,118 15,831 38,240 Amount Used / Transfer from Reserve 0 0 (650,000) 257,302 259,621 248,184
(f) Recreation Reserve Opening Balance 3,582,344 3,447,692 2,686,150 Amount Set Aside / Transfer to Reserve 131,101 93,906 1,169,734 Amount Used / Transfer from Reserve (579,984) (2,200,000) (273,540) 3,133,461 1,341,598 3,582,344
(g) Roads and Footpaths Reserve Opening Balance 0 0 211,357 Amount Set Aside / Transfer to Reserve 0 0 9,408 Amount Used / Transfer from Reserve 0 0 (220,765) 0 0 0
(h) Parking Facilities Reserve Opening Balance 808,892 804,677 774,189 Amount Set Aside / Transfer to Reserve 30,804 36,238 34,703 Amount Used / Transfer from Reserve (79,647) (152,000) 0 760,049 688,915 808,892
(i) Senior Citizens Reserve Opening Balance 758,842 755,017 703,326 Amount Set Aside / Transfer to Reserve 27,811 33,834 55,516 Amount Used / Transfer from Reserve 0 0 0 786,653 788,851 758,842
67 Page 41 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2014 2013 $ Budget $ $ 11. RESERVES - CASH BACKED (Continued)
(j) Airport Movement Area Reserve Opening Balance 5,461,683 5,433,225 5,227,373 Amount Set Aside / Transfer to Reserve 199,705 244,679 234,310 Amount Used / Transfer from Reserve (232,976) (500,000) 0 5,428,412 5,177,904 5,461,683
(k) Oasis Reserve Opening Balance 705,077 692,702 76,875 Amount Set Aside / Transfer to Reserve 19,109 34,500 1,053,202 Amount Used / Transfer from Reserve 0 (391,000) (425,000) 724,186 336,202 705,077
(l) Aerodrome Opening Balance 2,782,275 2,767,775 2,662,879 Amount Set Aside / Transfer to Reserve 101,822 180,000 119,396 Amount Used / Transfer from Reserve 0 0 0 2,884,097 2,947,775 2,782,275
(m) Valuations Equalisation Reserve Opening Balance 120,432 118,691 322,969 Amount Set Aside / Transfer to Reserve 4,610 145,000 144,463 Amount Used / Transfer from Reserve 0 0 (347,000) 125,042 263,691 120,432
(n) Insurance Equalisation Reserve Opening Balance 444,912 442,613 425,839 Amount Set Aside / Transfer to Reserve 17,029 18,892 19,073 Amount Used / Transfer from Reserve 0 0 0 461,941 461,505 444,912
(o) Town Halls Refurbishment Reserve Opening Balance 86,037 84,515 302,604 Amount Set Aside / Transfer to Reserve 3,293 1,050 13,433 Amount Used / Transfer from Reserve 0 (87,000) (230,000) 89,330 (1,435) 86,037
(p) Waste Initiatives Reserve Opening Balance 88,862 88,318 84,973 Amount Set Aside / Transfer to Reserve 3,402 9,853 3,889 Amount Used / Transfer from Reserve 0 0 0 92,264 98,171 88,862
(q) Airport and City Promotions Opening Balance 565,404 560,956 459,186 Amount Set Aside / Transfer to Reserve 21,511 5,000 435,218 Amount Used / Transfer from Reserve (10,000) (150,000) (329,000) 576,915 415,956 565,404
(r) Staff Retention and Attraction Opening Balance 463,769 458,926 980,196 Amount Set Aside / Transfer to Reserve 16,958 8,700 38,573 Amount Used / Transfer from Reserve (476,366) (476,366) (555,000) 4,361 (8,740) 463,769 68 Page 42 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2014 2013 $ Budget $ $ 11. RESERVES - CASH BACKED (Continued)
(s) Unspent Grants and Contributions Opening Balance 6,892,849 7,029,581 7,388,102 Amount Set Aside / Transfer to Reserve 1,129,250 75,000 374,182 Amount Used / Transfer from Reserve (1,211,611) (3,328,148) (869,435) 6,810,488 3,776,433 6,892,849
TOTAL RESERVES 26,219,054 20,528,671 28,636,375
Total Opening Balance 28,636,375 28,572,256 28,942,248 Total Amount Set Aside / Transfer to Reserve 1,919,061 1,696,869 5,838,867 Total Amount Used / Transfer from Reserve (4,336,383) (9,740,454) (6,144,740) TOTAL RESERVES 26,219,054 20,528,671 28,636,375
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.
In accordance with council resolutions in relation to each reserve account, the purpose for which the funds are set aside are as follows:
(a) Leave Reserve This Reserve is maintained to finance payments to staff for Long Service. It is funded from allocations in Annual Budgets by amounts calculated to be necessary from time to time.
(b) Plant Reserve As part of Council's forward planning, a five (5) year Plant Replacement Program is maintained and amounts calculated as necessary to ensure the funding of replacements are transferred annually.
(c) Building Reserve A Reserve has been created to assist funding of building projects and any major structural repairs to existing assets. It has been replenished from the sale of Council owned land and buildings.
(d) Computer Facilities This Reserve account has been established to enable emergency funding of IT requirements. It is replenished from time to time.
(e) Sewerage Construction Reserve As part of the Sewerage Rate (Specified Area Rate), Council has provided for the ongoing construction and future replacement of the sewerage lines as well as any other initiatives that may present themselves.
(f) Recreation Reserve Annual allocations to provide for future recreational needs of residents has allowed a substantial Reserve to be created. It may be utilised for future reserves, ovals, or any recreational projects Council deems necessary.
(g) Roads and Footpaths Reserve This Reserve is to provide funding for Road and Footpath Construction and is regarded by Council as a buffer to Council's normal allocations to construction projects.
(h) Parking Facilities Reserve The parking needs of the City are becoming more obvious and this Reserve is maintained to meet opportunities as they arise. It has been funded by developer payments and a one-off contribution by the City. 69 Page 43 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2014 2013 $ Budget $ $ 11. RESERVES - CASH BACKED (Continued)
(i) Senior Citizens Reserve This Reserve was created to meet any requirements the Community Centre may have from time to time. It funded the extensions in 1996/97 and is currently being re-assessed.
(j) Airport Movement Area Reserve This Reserve is funded from Airport Operations and was established for the replacement/ replenishment of the Movement Area Infrastructure.
(k) Oasis Reserve A Reserve was established in 1999/2000 by contributions from various sources to improve the Goldfields Oasis.
(l) Aerodrome A Reserve was established in 2002/2003 to facilitate the replacement of assets and the subsidisation of operations at the Airport which are not included in the Airport Movement Area Replacement Reserve.
(m) Valuations Equalisation Reserve A reserve account was established in 2009/2010 assist in the 4 yearly expense of revaluations. Government subsidy of $50% has now been removed.
(n) Insurance Equalisation Reserve A Reserve account was established in 2003/2004 from the surplus of budget to actual for the City's Workers Compensation policy.
(o) Town Halls Refurbishment Reserve A Reserve account was established in 2004/2005 to allow for future maintenance, refurbishment upgrading and heritage development of the Kalgoorlie and Boulder Town Halls.
(p) Waste Initiatives Reserve A Reserve account was established in 2004/2005 to allow for future maintenance, refurbishment upgrading and heritage development of the Kalgoorlie and Boulder Town Halls.
(q) Airport and City Promotions A Reserve account was established in 2005/2006 to allow council to promote the City of Kalgoorlie Boulder and the Kalgoorlie Boulder Airport.
(r) Staff Retention and Attraction A reserve account was established in 2006/2007 to assist the council in the implementation of the Workplace agreement adopted and introduced in December 2006 and renewed in December 2011.
(s) Unspent Grants and Contributions A reserve created in 2007/2008 to transfer unspend grants and contribution to as at 30th June each year in order to keep more control over these restricted funds.
The Unspent Grants reserve is expected to be utilised in 2014/2015. All other Reserves are not expected to be used within a set period as further transfers to the reservfe accounts are expected as funds are utilised.
70 Page 44 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
12. REVALUATION SURPLUS 2014 2013 $ $ Revaluation surpluses have arisen on revaluation of the following classes of non-current assets:
(a) Plant and Equipment Opening Balance 137,555 0 Revaluation Increment 0 137,555 Revaluation Decrement 0 0 137,555 137,555
(a) Land Opening Balance 0 0 Revaluation Increment 20,749,284 0 Revaluation Decrement 0 0 20,749,284 0
(a) Buildings Opening Balance 0 0 Revaluation Increment 30,415,342 0 Revaluation Decrement 0 0 30,415,342 0
(a) Investment Proeprty Opening Balance 0 0 Revaluation Increment 6,669,053 0 Revaluation Decrement 0 0 6,669,053 0
TOTAL ASSET REVALUATION SURPLUS 57,971,234 137,555
Page 45 71 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
13. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows:
2014 2014 2013 $ Budget $ $
Cash and Cash Equivalents 26,975,063 19,269,972 31,839,744
(b) Reconciliation of Net Cash Provided By Operating Activities to Net Result
Net Result (1,796,110) 45,240,992 6,095,192
Depreciation 10,457,943 10,392,330 9,740,657 (Profit)/Loss on Sale of Asset 1,038,010 (102,654) 144,145 (Increase)/Decrease in Receivables (788,978) (802,535) (130,806) (Increase)/Decrease in Inventories (69,430) 48,261 (2,154) Increase/(Decrease) in Payables (800,985) 50,000 3,835,268 Increase/(Decrease) in Provisions (133,252) 70,000 311,298 Grants Contributions for the Development of Assets (3,836,938) (41,591,582) (8,160,244) Non-Current Assets recognised due to changes in legislative requirements 0 0 38,514 Net Cash from Operating Activities 4,070,260 13,304,812 11,871,870
2014 2013 (c) Undrawn Borrowing Facilities $ $ Credit Standby Arrangements Bank Overdraft limit 0 0 Bank Overdraft at Balance Date 0 0 Credit Card limit 40,000 40,000 Credit Card Balance at Balance Date (8,286) (16,439) Total Amount of Credit Unused 31,714 23,561
Loan Facilities Loan Facilities - Current 1,357,288 1,047,750 Loan Facilities - Non-Current 7,232,639 4,233,384 Total Facilities in Use at Balance Date 8,589,927 5,281,134
Unused Loan Facilities at Balance Date 0 0
72 Page 46 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
14. CONTINGENT LIABILITIES
The City of Kalgoorlie-Boulder has no contingent liabilities as at 30 June 2014.
2014 2013 15. CAPITAL AND LEASING COMMITMENTS $ $
(a) Operating Lease Commitments
Non-cancellable operating leases contracted for but not capitalised in the accounts.
Payable: - not later than one year 257,897 156,110 - later than one year but not later than five years 700,200 38,897 - later than five years 0 0 958,097 195,007
(b) Capital Expenditure Commitments
Contracted for: - capital expenditure projects 12,464,554 0
Payable: - not later than one year 12,464,554 0
The capital expenditure project outstanding at the end of the current reporting period represents the construction of the new Shepardson Park Lighting, Airport Passenger Security Services, Oasis UV Systems, Airport Taxiway C Partial Rebuild, 2 x 30kW Surface Aerators, Burt Street Heritage Precinct.
73 Page 47 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
16. JOINT VENTURE ARRANGEMENTS
The City together with the Shires of Coolgardie, Dundas, Esperance, Laverton, Leonora, Menzies, Ngaanyatjarraku, Ravensthorpe, and Wiluna have a joint venture arrangement for the provision of a regional records service. The assets included in the joint venture recorded at councils one-tenth share are as follows:
2014 2013 $ $ Non-Current Assets Land & Buildings - Cost 0 74,688 Land & Buildings - Independent Valuation 75,500 0 Less: Accumulated Depreciation 0 (1,873) 75,500 72,815
Plant & Machinery 12,109 11,393 Less: Accumulated Depreciation (1,332) (868) 10,777 10,525
Furniture & Equipment 8,247 13,455 Less: Accumulated Depreciation (1,649) (762) 6,598 12,693
Light Vehicles 3,549 3,944 Less: Accumulated Depreciation (591) (394) 2,958 3,550
TOTAL ASSETS 95,833 99,583
17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY 2014 2013 $ $
Governance 6,164,220 4,658,735 Law, Order, Public Safety 933,349 443,627 Health 479,332 51,277 Education and Welfare 1,089,222 1,810,939 Housing 758,359 579,010 Community Amenities 23,796,581 24,843,329 Recreation and Culture 91,176,045 65,503,511 Transport 118,527,292 116,819,996 Economic Services 9,627,787 9,409,432 Other Property and Services 16,374,736 11,115,221 Unallocated 71,851,316 47,131,037 340,778,239 282,366,114
74 Page 48 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2013 2012 18. FINANCIAL RATIOS
Current Ratio 0.583 0.682 0.852 Asset Sustainability Ratio 1.117 1.051 1.210 Debt Service Cover Ratio 3.904 7.325 9.218 Operating Surplus Ratio (0.106) (0.039) 0.017 Own Source Revenue Coverage Ratio 0.807 0.852 0.874
The above ratios are calculated as follows:
Current Ratio current assets minus restricted assets current liabilities minus liabilities associated with restricted assets
Asset Sustainability Ratio capital renewal and replacement expenditure Depreciation expenses
Debt Service Cover Ratio annual operating surplus before interest and depreciation principal and interest
Operating Surplus Ratio operating revenue minus operating expenses own source operating revenue
Own Source Revenue Coverage Ratio own source operating revenue operating expenses
Notes:
Information relating to the Asset Consumption Ratio and the Asset Renewal Funding Ratio can be found at Supplementary Ratio Information on Page 72 of this document.
Two of the 2013 ratios disclosed above are distorted by item of expense totalling $38,514 relating to the revaluation decrement of major plant & equipment in accordance with Financial Management Regulations 17A (refer to Note 6 for further details). This item forms part of operating expenses and has been included in the calculations above. This item of expense is considered to be "one-off' and is non-cash in nature and, if it was ignored, the calculations disclosed in the 2013 column above would be as follows:
2013
Debt Service Cover Ratio 7.361 Operating Surplus Ratio 0.038
75 Page 49 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
19. TRUST FUNDS
Funds held at balance date over which the City has no control and which are not included in the financial statements are as follows:
Balance Amounts Amounts Balance 1 July 2013 Received Paid 30 June 2014 $ $ ($) $
Aged Persons Homes 0 0 0 0 Cash in Lieu POS 597,060 0 (280,079) 316,981 Subdivision Bonds 0 134,660 0 134,660 Cash in Lieu Footpaths 71,265 0 0 71,265 Cash in Lieu Parking 301,127 0 0 301,127 Deposits Demolitions 10,190 44,400 (22,100) 32,490 Deposits Footpaths 2,100 4,980 0 7,080 Deposits General 1,928 100 (100) 1,928 Deposits Halls & Buildings 6,800 6,800 (11,700) 1,900 Deposit Cat Traps 500 10,100 (10,000) 600 Deposits Keys 4,050 2,950 (6,200) 800 Deposits Security Access 50 0 0 50 Deposits Long Term Hall Bonds 0 2,600 0 2,600 Deposits Nominations 0 1,120 (1,120) 0 Sale of Land-Non Paymt of Rates 0 265,350 (228,117) 37,233 Government Grants 0 0 0 0 Bonds Ground Hire 2,500 14,900 (12,500) 4,900 Bonds Landscapes 17,000 0 (5,000) 12,000 Bonds Tenancy 1,000 0 (1,000) 0 Bonds General Planning 46,176 340 (46,516) 0 Unclaimed Monies 3,602 5,980 0 9,582 Sundry Trust 413,375 20,763,777 (488,890) 20,688,262 Deposits - Goldfields Art Centre 0 32,319 0 32,319 Endowment Block - Bonds/Variables 0 24,764 0 24,764 1,478,723 21,680,541
76 Page 50 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
20. DISPOSALS OF ASSETS - 2013/14 FINANCIAL YEAR
The following assets were disposed of during the year.
Net Book Value Sale Price Profit (Loss) Actual Budget Actual Budget Actual Budget $ $ $ $ $ $ By Category Land LD031 0 280,000 0 280,000 0 0 LD032 0 900,000 0 900,000 0 0 2077 1,885 0 0 0 (1,885) 0 2093 101 0 0 0 (101) 0
Buildings 2001 11,501 0 0 0 (11,501) 0 2090 12,133 0 0 0 (12,133) 0 2099 27,556 0 0 0 (27,556) 0 2105 13,573 0 0 0 (13,573) 0 2104 2,154 0 0 0 (2,154) 0 2008 857 0 0 0 (857) 0 2061 2,799 0 0 0 (2,799) 0 2060 8,911 0 0 0 (8,911) 0 2064 231 0 0 0 (231) 0 2126 54,051 0 0 0 (54,051) 0 2011 31,786 0 0 0 (31,786) 0 LB027 3,738 0 0 0 (3,738) 0 LB007 1,948 0 0 0 (1,948) 0 2003 4,271 0 0 0 (4,271) 0 LB114 508,576 0 250,000 0 (258,576) 0 2075 371,860 0 0 0 (371,860) 0
Plant & Machinery PE332 43,093 0 32,000 85,000 (11,093) 85,000 PE437 0 0 0 20,000 0 20,000 PE438 10,118 0 6,000 20,000 (4,118) 20,000 PE440 0 0 0 15,000 0 15,000 PE500 0 0 6,000 10,000 6,000 10,000 PE501 2,380 0 6,000 10,000 3,620 10,000 PE502 2,380 0 4,000 10,000 1,620 10,000 PE503 10,206 0 10,000 25,000 (206) 25,000 PE530 68,880 0 70,000 110,000 1,120 110,000 PE564 92,671 55,030 68,000 70,000 (24,671) 14,970 PE587 94,081 144,236 100,000 105,000 5,919 (39,236) PE603 0 62,013 0 50,000 0 (12,013) PE922 0 12,838 0 15,000 0 2,162 PE923 9,207 16,100 4,738 15,000 (4,469) (1,100) PE924 0 13,040 0 15,000 0 1,960
Light Vehicles MV312 22,869 0 10,909 0 (11,960) 0 MV357 0 39,849 0 20,000 0 (19,849) MV361 31,974 23,744 28,182 30,000 (3,792) 6,256 MV417 23,683 15,725 19,727 15,000 (3,956) (725) MV424 16,326 29,979 10,476 16,000 (5,850) (13,979) MV425 0 29,991 0 15,000 0 (14,991) MV426 14,733 29,967 12,294 13,000 (2,439) (16,967) MV427 0 8,176 0 12,000 0 3,824 MV431 0 20,023 0 25,000 0 4,977 MV432 15,152 11,611 9,180 12,000 (5,972) 389 MV433 15,152 11,611 10,778 12,000 (4,374) 389
77 Page 51 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
20. DISPOSALS OF ASSETS - 2013/14 FINANCIAL YEAR (Continued)
Net Book Value Sale Price Profit (Loss) Actual Budget Actual Budget Actual Budget $ $ $ $ $ $ MV434 15,152 11,611 10,089 12,000 (5,063) 389 MV438 16,189 9,423 6,756 12,000 (9,433) 2,577 MV439 16,701 0 16,352 0 (349) 0 MV443 15,170 10,416 8,466 12,000 (6,704) 1,584 MV450 16,812 14,794 15,155 15,000 (1,657) 206 MV453 20,394 16,291 21,252 15,000 858 (1,291) MV454 13,943 10,632 9,091 10,000 (4,852) (632) MV455 13,250 10,801 9,773 10,000 (3,477) (801) MV456 25,195 38,151 19,533 23,000 (5,663) (15,151) MV459 26,148 18,403 12,811 18,000 (13,337) (403) MV461 12,733 11,031 7,727 11,000 (5,006) (31) MV462 15,190 13,063 14,002 10,000 (1,188) (3,063) MV463 12,553 11,890 9,713 12,000 (2,840) 110 MV464 12,550 11,931 9,690 12,000 (2,860) 69 MV465 12,553 11,914 12,427 12,000 (126) 86 MV466 0 12,128 0 12,000 0 (128) MV467 15,350 12,842 14,091 10,000 (1,258) (2,842) MV468 15,341 16,291 13,851 10,000 (1,491) (6,291) MV469 0 12,820 0 10,000 0 (2,820) MV471 15,319 16,489 15,000 10,000 (319) (6,489) MV472 20,089 15,977 13,850 15,000 (6,240) (977) MV473 16,957 14,233 12,362 12,000 (4,595) (2,233) MV474 16,811 14,371 12,171 12,000 (4,640) (2,371) MV475 21,401 0 10,998 0 (10,404) 0 MV477 14,831 11,060 8,945 11,000 (5,886) (60) MV480 17,926 21,660 14,604 15,000 (3,322) (6,660) MV481 20,681 24,062 14,091 15,000 (6,590) (9,062) MV483 43,857 37,002 32,727 34,000 (11,130) (3,002) MV484 20,711 33,840 15,631 18,000 (5,080) (15,840) MV485 14,035 14,289 8,006 12,000 (6,028) (2,289) MV486 29,434 34,838 20,909 18,000 (8,525) (16,838) MV487 0 21,360 0 14,000 0 (7,360) MV488 23,993 20,856 18,410 16,000 (5,582) (4,856) MV489 25,000 22,544 16,540 16,000 (8,459) (6,544) MV493 15,120 17,690 15,909 12,000 789 (5,690) MV494 25,485 20,389 20,229 16,000 (5,256) (4,389) MV495 25,310 18,819 18,481 16,000 (6,829) (2,819) MV524 35,643 20,155 32,727 30,000 (2,917) 9,845 MV557 0 14,345 0 12,000 0 (2,347) 2,208,663 2,352,344 1,170,653 2,455,000 (1,038,010) 102,654
Profit 19,926 354,791 Loss (1,057,936) (252,137) (1,038,010) 102,654
78 Page 52 0 0 0 0 0 202 262 6,796 1,763 2,753 1,511 $ 58,220 32,933 12,653 49,109 12,583 31,997 30,472 241,254 Budget 0 0 Interest 188 261 6,696 1,630 2,511 1,397 1,504 1,537 8,243 Repayments $ 58,042 33,398 12,104 49,517 12,547 32,449 30,874 252,898 Actual 0 0 0 $ 98,707 22,827 31,583 19,565 666,899 805,477 130,432 766,823 204,671 782,580 703,824 581,537 950,000 750,000 9,514,925 3,000,000 Budget 0 0 0 0 Principal 30 June 2014 30 June $ 98,707 22,827 31,583 19,565 666,899 805,477 130,432 766,823 204,672 782,580 703,823 581,539 775,000 Actual 8,589,927 3,000,000 0 0 0 0 0 6,766 5,191 6,534 75,980 30,037 11,389 73,820 37,133 12,080 23,711 10,355 $ 631,633 123,122 1,047,751 Budget 0 0 0 0 0 Principal Repayments 6,766 5,190 6,534 $ 75,980 30,036 11,389 73,820 37,133 12,080 23,711 10,354 631,633 123,120 Actual 1,047,746 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 581,539 775,000 New Loans 3,000,000 4,356,539 Page 53 0 0 0 0 0 5,190 6,534 $ 34,907 55,294 29,919 881,457 105,473 253,552 796,859 216,061 856,400 740,956 2013 1 July 1 July 1,298,532 5,281,134 Principal CITY KALGOORLIE-BOULDER OF FOR THE YEAR ENDED 30TH THE JUNE 2014FOR YEAR NOTES TO AND FORMING PART OF THE FINANCIAL REPORT THE OF FINANCIAL PART FORMING NOTES TO AND Particulars Law, Safety Public Order, Loan 333 CCTV Health Loan 308A RFDS* Amenities Community WorksLoan 337 Sewerage Burner Rd Methane Loan 340 Yarri Culture and Recreation Loan 324 Palace Theatre* Loan 326 Goldfields Tennis Assn* Loan 327 Goldfields Tennis Assn* Loan 329A Goldfields Oasis ExtensionsLoan 336 Library Loan 338 Kalgoorlie Bowling Club* Loan 339 Oasis Energy Alternative Complex Finlayson Loan 341 Ray Loan 344 Oasis Energy Alternative Loan 346 Golf Plant Course & Equipment Services Economic Loan 332 Visitors Centre* BlockLoan 342 Endowmnet Roof Loan 343 War Relocation Museum Lighting Loan 345 Shepardson Oval Self(*) supporting loan financed from third parties. payments by All were financed loan other repayments general by purpose revenue. INFORMATION ON BORROWINGS ON INFORMATION Repayments - Debentures - Repayments 21. (a) (a)
79 0 0 0 0 $ 2,116,040 2,116,040 Balance Unspent 0 $ 950,000 750,000 581,539 3,000,000 5,281,539 Budget 0 0 Amount Used Amount $ 581,539 883,960 775,000 Actual 2,240,499 % 4.77 4.77 4.45 4.73 3.40 Rate Interest 0 0 76,479 $ $ 385,469 304,318 226,719 Total 2,116,040 1,707,660 2,116,040 2,700,645 Balance Charges Interest & Interest 30 June 14 30 June 5 $ 15 15 15 20 695,982 796,690 883,960 Year Term During 1,579,942 (Years) Expended 0 0 $ Year Type Loan During 3,000,000 3,000,000 Debenture Debenture Debenture Debenture Debenture Borrowed Page 54 0 $ 695,982 796,690 WATC WATC WATC WATC WATC 1,492,672 Balance 1 July 13 1 July Institution 0 CITY KALGOORLIE-BOULDER OF FOR THE YEAR ENDED 30TH THE JUNE 2014FOR YEAR $ 950,000 750,000 581,539 Date 3,000,000 5,281,539 Budget Borrowed 28/03/2013 10/06/2014 28/03/2013 0 0 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT THE OF FINANCIAL PART FORMING NOTES TO AND $ 581,539 775,000 Amount BorrowedAmount Actual 3,000,000 4,356,539 Particulars/Purpose Complex Finlayson Loan 341 Ray Loan 343 War Relocation Museum Loan 344 Oasis Energy Alternative Lighting Loan 345 Shepardson Oval Loan 346 Golf Plant Course & Equipment Unspent Debentures Particulars Block Loan 342 Endowment Complex Finlayson Loan 341 Ray Burner Rd/ Methane Loan 340 Yarri City doesThe an not overdraft have facility. INFORMATION ON BORROWINGS (Continued) BORROWINGS ON INFORMATION New Debentures 2013/14 - Overdraft 21. (c) (b) (b) (d)
80 5,976 4,878 $ 17,073 25,203 243,889 736,307 185,469 150,405 131,513 176,790 (10,000) Total Budget 5,602,031 5,090,193 1,508,946 1,480,643 2,441,892 2,993,656 6,573,467 Revenue 16,164,269 21,756,300 21,766,300 0 0 0 0 0 0 0 0 0 0 0 0 1,500 1,500 1,500 1,500 9,000 $ 15,000 Rate Back Budget 0 0 0 0 0 0 0 0 0 0 0 0 $ 16,000 16,000 37,000 37,000 Rate 325,000 219,000 Interim Budget 5,976 4,878 $ 17,073 25,203 243,889 736,307 185,469 150,405 131,513 176,790 Rate Budget 5,602,031 5,090,193 1,491,446 1,463,143 2,403,392 2,955,156 6,345,467 Revenue 15,824,269 5,976 4,878 $ 17,073 25,203 243,889 203,210 185,469 767,048 150,405 131,513 176,790 (83,890) Total 5,602,031 1,491,446 1,467,170 2,401,804 3,010,907 5,090,193 6,402,305 Revenue 21,691,389 21,572,069 15,970,038 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ (1,098) (1,098) Back Rates 0 0 0 0 0 0 0 0 0 0 0 0 4,027 $ 55,749 55,817 30,741 (1,588) 144,745 Rates Interim 5,976 4,878 $ 17,073 25,203 243,889 185,469 736,307 150,405 131,513 176,790 Rate 5,602,031 1,491,446 1,463,143 2,403,392 2,955,158 5,090,193 6,347,586 Page 55 Revenue 15,826,388 7,016 $ 228,784 315,898 269,526 672,558 182,325 Value 4,442,504 3,061,302 4,538,801 1,485,131 Rateable 74,099,555 27,167,089 26,651,542 43,778,429 17,983,618 70,938,317 CITY OF KALGOORLIE-BOULDER 243,246,265 115,622,980 FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR 6 6 of 41 21 31 24 244 318 613 585 185 379 710 8,260 7,617 5,443 1,010 6,261 Number Properties NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND $ 813 813 813 813 347 249 249 813 Cents 5.4899 5.4899 5.4899 5.4899 5.4899 6.0585 Rate in 16.4325 16.2225 Minimum GRV Mining UV Mining Operations Mining UV Operations Mining UV GRV Residential Business GRV Central Industry GRV General GRV Other Properties / Prospecting Exploration UV Pastoral UV Sub-Totals GRV Residential Business GRV Central Industry GRV General GRV Other Properties / Prospecting Exploration UV Pastoral UV Sub-Totals RATING INFORMATION - 2013/14 FINANCIAL YEAR INFORMATION FINANCIAL - RATING 2013/14 GRV Mining Rates (a) 22. 02 03 08 03 08 04 10 05 RATE TYPERATE Rate General Rate / Differential General 01 11 & 09 Minimum Payment 01 11 & 09 Advance in Rates Paid Discounts (refer 25) note FromRate General Raised TotalAmount 02 04 10 05
81 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
22. RATING INFORMATION - 2013/14 FINANCIAL YEAR (Continued)
(b) Information on Surplus/(Deficit) Brought Forward
2014 2014 2013 (30 June 2014 (1 July 2013 (30 June 2013 Carried Forward) Brought Forward) Carried Forward) $ $ $
Surplus/(Deficit) 1 July 13 Brought Forward 418,357 1,227,138 1,227,138
Comprises:
Cash at Bank - Unrestricted (1,360,031) 1,096,643 1,096,643 Cash at Bank - Unpsent Grants 0 614,053 614,053 Cash at Bank - Unspent Loans 2,116,040 1,492,672 1,492,673 Reserves - Restricted Cash 26,219,054 28,636,376 28,636,376 Rates - Current 1,256,995 1,264,527 1,264,527 Sundry Debtors 5,818,534 4,551,136 4,551,136 GST Receivables 229,397 683,196 683,195 Other Debtors 66,745 104,649 104,649 Inventories - Fuel and Materials 163,486 94,056 94,056
Less:
Reserves - Restricted Cash (26,219,054) (28,636,376) (28,636,376)
Sundry Creditors (7,227,690) (8,197,928) (8,197,928) Accrued Interest on Debentures (20,772) (12,700) (12,700) Accrued Salaries and Wages (614,565) (424,532) (424,532) Other Payables (9,782) (38,634) (38,634)
Surplus/(Deficit) 418,357 1,227,138 1,227,138
Difference There was no difference between the Surplus/(Deficit) 1 July 2013 Brought Forward position used in the 2014 audited financial report and the Surplus/(Deficit) Carried Forward position as disclosed in the 2013 audited financial report.
82 Page 56 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
23. SEWERAGE RATE - 2013/14 FINANCIAL YEAR
Rate in Basis Rateable Rate Budget Applied Budget $ of Value Revenue Rate to Costs Applied Rate $ $ Revenue $ to Costs $ $ Sewerage Rate - Rate 2.2045 Rate in $ 189,986,948 4,220,672 4,188,260 4,220,672 4,188,260 - Minimum 311 Min 63,930,240 1,806,548 1,791,671 1,806,548 1,791,671 6,027,220 5,979,931 6,027,220 5,979,931
The sewerage rate for the City of Kalgoorlie-Boulder Effluent Scheme is for those properties in the Kalgoorlie-Boulder locality which are connected to, or capable of being connected to the sewerage scheme.
The proceeds of the rate are applied in full to the maintenance of the scheme and/or treatment and disposal of the treated effluent by-product as well as a transfer from the Reserve fund to fund the budgeted works.
24. SERVICE CHARGES - 2013/14 FINANCIAL YEAR
The City of Kalgoorlie-Boulder imposed no service charges on ratepayers for the 2013/14 financial year, and has not included any proposition to do so in 2014/15.
25. DISCOUNTS, INCENTIVES, CONCESSIONS, & WRITE-OFFS - 2013/14 FINANCIAL YEAR
Type Disc % Total Budget Cost/ Cost/ Value Value $ $ Rate Assessment Incentive N/A 10,000 10,000 Rate Assessment Write-Off N/A 83,890 10,000
26. INTEREST CHARGES AND INSTALMENTS - 2013/14 FINANCIAL YEAR
Interest Admin. Revenue Budgeted Rate Charge $ Revenue % $ $ Interest on Unpaid Rates 10% or 5% N/A 406,225 289,000 Charges on Instalment Plan N/A 5 12,866 90,000 419,091 379,000
Ratepayers had the option of paying rates in four equal instalments, due on 11 September 2013, 13 November 2013, 15 January 2014 and 19 March 2014. Administration charges and interest applied for the final three instalments.
83 Page 57 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2013 27. FEES & CHARGES $ $
Governance 4,454 446 General Purpose Funding 168,644 205,384 Law, Order, Public Safety 289,725 223,924 Health 166,178 164,662 Education and Welfare 144,788 135,804 Housing 0 3,679 Community Amenities 12,669,425 11,938,859 Recreation and Culture 5,601,867 5,556,064 Transport 6,572,361 7,556,128 Economic Services 251,148 188,728 Other Property and Services 33,687 0 25,902,277 25,973,678
There were no changes during the year to the amount of the fees or charges detailed in the original budget.
28. GRANT REVENUE Grants, subsidies and contributions are included as operating revenues in the Statement of Comprehensive Income:
2014 2013 By Nature or Type: $ $ Operating Grants, Subsidies and Contributions 7,047,658 7,124,121 Non-Operating Grants, Subsidies and Contributions 3,836,938 8,160,244 10,884,596 15,284,365 By Program: Governance 518,158 833,008 General Purpose Funding 1,113,614 2,455,547 Law, Order, Public Safety 68,795 213,797 Health 258,707 243,304 Education and Welfare 1,345,993 1,364,851 Housing 200 285 Community Amenities 67,276 7,312 Recreation and Culture 2,278,946 5,209,146 Transport 4,101,901 3,660,190 Economic Services 513,956 546,150 Other Property and Services 617,049 750,775 10,884,596 15,284,365
29. EMPLOYEE NUMBERS NUMBERS AND PAYMENTS
The number of full-time equivalent employees at balance date 299 288
2014 2014 2013 30. ELECTED MEMBERS REMUNERATION $ Budget $ Set out below in bands of $10,000 is the number of employees of the City entitled $to an annual salaryThe of following $100,000 fees, or expenses more. and allowances were paid to council members and/or the Mayor. Salary Range $ 2013 2014 Meeting Fees 260,000 269,999 304,780 1 312,000 95,669 Mayor Allowance 250,000 259,999 1 67,500 67,500 52,500 Deputy Mayor 190,000 Allowance 199,999 16,875 1 16,875 13,125 Travelling Expenses 0 1,000 372 Telecommunications 180,000 Allowance 189,999 2 12,698 1 13,000 43,067 170,000 179,999 1 401,853 2 410,375 204,733 140,000 149,999 2 2 130,000 139,999 5 8 120,000 129,999 3 2 110,000 119,999 4 2 100,000 109,999 Page 58 2 12
84 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
2014 2013 27. FEES & CHARGES $ $
Governance 4,454 446 General Purpose Funding 168,644 205,384 Law, Order, Public Safety 289,725 223,924 Health 166,178 164,662 Education and Welfare 144,788 135,804 Housing 0 3,679 Community Amenities 12,669,425 11,938,859 Recreation and Culture 5,601,867 5,556,064 Transport 6,572,361 7,556,128 Economic Services 251,148 188,728 Other Property and Services 33,687 0 25,902,277 25,973,678
There were no changes during the year to the amount of the fees or charges detailed in the original budget.
28. GRANT REVENUE Grants, subsidies and contributions are included as operating revenues in the Statement of Comprehensive Income:
2014 2013 By Nature or Type: $ $ Operating Grants, Subsidies and Contributions 7,047,658 7,124,121 Non-Operating Grants, Subsidies and Contributions 3,836,938 8,160,244 10,884,596 15,284,365 By Program: Governance 518,158 833,008 General Purpose Funding 1,113,614 2,455,547 Law, Order, Public Safety 68,795 213,797 Health 258,707 243,304 Education and Welfare 1,345,993 1,364,851 Housing 200 285 Community Amenities 67,276 7,312 Recreation and Culture 2,278,946 5,209,146 Transport 4,101,901 3,660,190 Economic Services 513,956 546,150 Other Property and Services 617,049 750,775 10,884,596 15,284,365
29. EMPLOYEE NUMBERS
The number of full-time equivalent employees at balance date 299 288
2014 2014 2013 30. ELECTED MEMBERS REMUNERATION $ Budget $ $ The following fees, expenses and allowances were paid to council members and/or the Mayor.
Meeting Fees 304,780 312,000 95,669 Mayor Allowance 67,500 67,500 52,500 Deputy Mayor Allowance 16,875 16,875 13,125 Travelling Expenses 0 1,000 372 Telecommunications Allowance 12,698 13,000 43,067 401,853 410,375 204,733
CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OFPage THE 58 FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
31. MAJOR LAND TRANSACTIONS
O'Connor Subdivision
(a) Details
In 1990 City obtained ownership and management of the airport which was relocated. As a result of this relocation of the airport, freehold land became available, which was developed and subdivided for residential lots. Additional costs were incurred by City in developing the lots. Costs were for services such as sewerage, power and transport infrastructure.
2014 2014 2013 (b) Current year transactions $ Budget $ $ Operating Revenue - Profit on sale 0 0 0
Capital Revenue - Sale Proceeds 0 900,000 0
Capital Expenditure - Development Costs 109,830 900,000 64,165 109,830 900,000 64,165
The above capital expenditure is included in land held for resale as disclosed elsewhere in this financial report. There are no liabilities in relation to this land transaction as at 30 June 2013.
(c) Expected Future Cash Flows 2015 2016 2017 2018 Total $ $ $ $ $ Cash Outflows - Development Costs (900,000) 0 0 0 (900,000) (900,000) 0 0 0 (900,000) Cash Inflows - Sale Proceeds 900,000 850,000 1,750,000 900,000 850,000 0 0 1,750,000
Net Cash Flows 0 850,000 0 0 850,000
The net cash flows to 30 June 2014 in relation to this subdivision is an outflow/(or cost) of $173,995. The net cash flows of the entire land transaction is expected to result in an inflow/(income) of $676,005.
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Page 59 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
Lot 501 Phoenix Place Subdivision
(a) Details
Lot 501, portion of Reserve 37979, is in the process of being purchased from the Government of Western Australia Department of Regional Development and Lands, in accordance with section 20A of the Town Planning and Development Act. The City is proposing to develop Lot 501 Phoenix Place into 11 single residential lots and 1 multi (3) site. the aim is to make the developed lots attractive to first home buyers with appropriate conditions of sale.
2014 2014 2013 (b) Current year transactions $ Budget $ $ Operating Revenue - Profit on sale 0 0 0
Capital Revenue - Sale Proceeds 0 280,000 0
Capital Expenditure - Development Costs 40,208 280,000 25,675 40,208 280,000 25,675
The above capital expenditure is included in land held for resale.
(c) Expected Future Cash Flows 2015 2016 2017 2018 Total $ $ $ $ $ Cash Outflows - Development Costs (280,000) 0 0 0 (280,000) (280,000) 0 0 0 (280,000) Cash Inflows - Sale Proceeds 280,000 320,000 600,000 280,000 320,000 0 0 600,000
Net Cash Flows 0 320,000 0 0 320,000
The net cash flows to 30 June 2014 in relation to this subdivision is an outflow (or cost) of $65,883. The net cash flows of the entire land transaction is expected to result in an inflow/income of $254,117.
86 Page 60 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
32. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS
KALGOORLIE-BOULDER AIRPORT OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2014
2014 2014 2013 Budget $ $ $
Operating Income 7,782,623 9,280,132 8,788,599 Operating Expenditure (6,532,438) (3,541,634) (6,455,504) Profit on Asset Disposals 0 0 0 Loss on Asset Disposal 0 0 (5,590) Operating Result 1,250,185 5,738,498 2,327,505
2014 2013 $ $ CURRENT ASSETS Cash at Bank 18,204,156 16,442,272 Receivables 1,461,429 1,818,928 19,665,585 18,261,200
NON-CURRENT ASSETS
Land 276,278 276,278 Buildings 10,724,077 10,721,822 Less Accumulated Depreciation (3,108,773) (2,838,792) Furniture & Equipment 99,344 97,321 Less Accumulated Depreciation (23,267) (10,889) Plant & Machinery 368,691 268,746 Less Accumulated Depreciation (62,698) (29,527) Construction Other than Buildings 131,095 130,720 Less Accumulated Depreciation (12,379) (7,596) Light Vehicles 45,200 45,200 Less Accumulated Depreciation (6,871) 0 Airport Area Infrastructure 12,936,371 12,531,536 Less Accumulated Depreciation (8,583,506) (8,269,996) Carpark Infrastructure 784,293 784,293 Less Accumulated Depreciation (314,916) (299,231) Drainage 557,950 557,950 Less Accumulated Depreciation (402,281) (395,027) 13,408,608 13,562,808
NET ASSETS 33,074,193 31,824,008
EQUITY Reserves - Cash Backed 8,312,509 8,243,957 Retained Surplus 24,761,684 23,580,051 33,074,193 31,824,008
87 Page 61 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
32. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS (Continued)
ENDOWMENT BLOCK OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2014
2014 2014 2013 Budget $ $ $
Operating Income 1,038,597 1,250,000 1,153,825 Operating Expenditure (490,899) (355,500) (421,678) Operating Result 547,698 894,500 732,147
CURRENT ASSETS Cash at Bank 5,536,789 7,995,091 5,536,789 7,995,091
NON-CURRENT ASSETS Land Buildings 0 7,515,000 Less Accumulated Depreciation 0 (3,006,000) 0 4,509,000
NET ASSETS 5,536,789 12,504,091
EQUITY Retained Surplus 5,536,789 12,504,091 5,536,789 12,504,091
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Page 62 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
33. FINANCIAL RISK MANAGEMENT
The City’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and interest rate risk. The City’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the City.
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 Council.
The City held the following financial instruments at balance date:
Carrying Value Fair Value 2014 2013 2014 2013 $ $ $ $ Financial Assets Cash and cash equivalents 26,975,063 31,839,744 26,975,063 31,839,744 Receivables 8,131,472 7,440,411 8,131,472 7,440,411 35,106,535 39,280,156 35,106,535 39,280,156
Financial Liabilities Payables 7,872,809 8,673,794 7,872,809 8,673,734 Long Term Borrowings 8,589,927 5,281,134 7,114,419 4,594,751 16,462,736 13,954,928 14,987,228 13,268,485
Fair value is determined as follows:
• Cash and Cash Equivalents, Receivables, Payables - estimated to the carrying value which approximates net market value.
• Borrowings, Held to Maturity Investments, estimated future cash flows discounted by the current market interest rates applicable to assets and liabilities with similar risk profiles.
89 Page 63 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
33. FINANCIAL RISK MANAGEMENT (Continued) (a) Cash and Cash Equivalents
The City’s objective is to maximise its return on cash and investments whilst maintaining an adequate level of liquidity and preserving capital. The finance area manages the cash and investments portfolio with the assistance of independent advisers (where applicable). The City has an investment policy and the policy is subject to review by Council. An Investment Report is provided to Council on a monthly basis setting out the make-up and performance of the portfolio.
Cash and investments are subject to interest rate risk - the risk that movements in interest rates could affect returns.
Another risk associated with cash is credit risk – the risk that a contracting entity will not complete its obligations under a financial instrument resulting in a financial loss to the City.
The City manages these risks by diversifying its portfolio and only investing in registered commercial banks. The City also seeks advice from independent advisers (where applicable) before placing any cash and investments.
2014 2013 $ $ Impact of a 1% (1) movement in interest rates on cash
- Equity 314,025 95,498 - Statement of Comprehensive Income 314,025 95,498
Notes: (1) Sensitivity percentages based on management's expectation of future possible market movements.
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Page 64 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
33. FINANCIAL RISK MANAGEMENT (Continued) (b) 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 makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.
There are no material receivables that have been subject to a re-negotiation of repayment terms.
The profile of the the City’s credit risk at balance date was:
2014 2013
Percentage of Rates and Annual Charges
- Current 0.00% 0.00% - Overdue 100.00% 100.00%
Percentage of Other Receivables
- Current 72.82% 80.17% - Overdue 27.18% 19.83%
91
Page 65 $ values 8,527,134 5,281,134 8,589,927 8,673,794 Carrying 17,117,061 13,954,928 $ Total 8,161,941 6,645,220 8,673,794 11,712,226 19,874,167 15,319,014 cash flowscash contractual 0 0 Page 66 $ Due after 6,507,127 6,507,127 2,841,503 2,841,503 5 years CITY OF KALGOORLIE-BOULDER 0 0 FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR $ Due 3,481,705 3,481,705 2,511,104 2,511,104 between 1 & 5 years 1 & 5 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND $ Due 1 year within 8,161,941 1,723,394 9,885,335 8,673,794 1,292,713 9,966,507 2014 2013 Borrowings obligations meet risk to risk the is hand on that payment insufficient be – funds that may subject liquidity are both to borrowings and Payables adequate an maintaining and levels requirements monitoring manages cash its liquidity flow and risk this The by due. City fall they when as and if required. upon cash terms drawn buffer. overdraft facilities and Payment extended can be Table below: Sensitivity Liquidity the in are setout Borrowings and Payables of cashThe City’s flows the undiscounted contractual Payables Borrowings Payables Borrowings FINANCIAL RISK MANAGEMENT (Continued) MANAGEMENT RISK FINANCIAL Payables (c) 33.
92 4.94% 4.65% % Average Effective Weighted Interest Rate $ Total 5,281,134 8,589,927 4.68% 4.66% $ 3,597,203 6,943,621 >5 years >5 0 3.40% $ 775,000 >4<5 years >4<5 0 0 $ >3<4 years >3<4 0 Page 67 5.64% $ 120,121 >2<3 years >2<3 CITY OF KALGOORLIE-BOULDER FOR THE YEAR ENDED 30TH ENDED 2014 JUNE FOR THE YEAR 5.63% 5.53% $ 73,975 1,552,086 >1<2 years >1<2 NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FORMINGNOTES OF THE TO FINANCIAL PART AND $ 5.52% 6.18% 11,724 797,331 <1 year <1 Year Ended 30 June 30 2014 Year Ended June 30 2013 Year Ended Borrowings are also subject to interest rate risk subject are also interest affect to risk -costs.Borrowings the funding movements The that City adversely rates could interest in time the most at the of considered advantageous situation term the rate to long interest the fixing and borrowing manages risk this by negotiation. instruments of rate risk: financial interest the to exposed maturity, amount, by carrying the setout tables The following Borrowings Fixed Rate Debentures Weighted Average Effective Rate Interest Borrowings Fixed Rate Debentures Weighted Average Effective Rate Interest FINANCIAL RISK MANAGEMENT (Continued) MANAGEMENT RISK FINANCIAL Borrowings (c) 33.
93 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
34. PRIOR PERIOD CORRECTIONS
The City of Kalgoorlie-Boulder begun construction of the Kalgoorlie Golf Course in 2002. This asset since then has been inadvertently subject to a depreciation rate of 2.5% per annum. This should have been accounted for as separate fixed asset classes of Land (Crown Land), not subject to depreciation, and Construction Other Than Buildings, subject to 10% depreciation per annum, since the completion of the Asset in November 2010. This error has now been identified disposals and the necessary depreciation expense adjustments have been affected. This oppurtunity was also taken to rectify asset disposals which were never processed for the following assets:
- Eastern Goldfields YMCA (Boulder Road) - Aged Pensions Homes (Collins Street)
As a result, a total expense of 184,582 was written back as follows:
a) Prior to 30 June 2012, a net expense of ($283,605) was deducted from the opening balance of retained surplus as at July 2012. This adjustment was made up of: i) Depreciation added back for Kalgoorlie Golf Course (Land) at 5% - $1,065,517 of which $746,263 was prior to 2010/2011 and $319,254 was for 2011/2012. ii) Depreciation charged for Kalgoorlie Golf Course (Construction other than Buildings) at 10% - ($661,948) of which ($413,717) was prior to 2010/2011 and ($248,231) was for 2011/2012. iii) Loss on assetts disposal of ($687,176) of which ($714,661) was prior to 2010/2011 and $27,487 was for 2011/2012. Land & Buildings have also been adjusted accordingly for the year 2012.
b) For 2012/2013, a net depreciation expense of $99,023 was adjusted to the depreciation and Land & Buildings accordingly for that year.
This opportunity was also taken to reclass: a) $8,784,521 from Land and Buildings to Council Controlled Land, b) $643,169 from Land and Buildings to Work in Progress, c) $5,406,337 from Land and Buildings to Water Conservation, d) $11,634,844 for Construction other than Building from Land and Buildings to Infrastructire, e) $49 from Land and Buildings to Investment Property, and f) $93,788 from Land Held for Resale to Land and Buildings.
Original Amount of Adjusted Effect of the above: Balance Adjustment Balance $ $ $
Statement of Comprehensive Income - by Nature or Type Depreciation (9,839,680) 99,023 (9,740,657) Net Results 5,996,169 99,023 6,095,192 Total Comprehensive income 6,133,724 99,023 6,232,747
- by Program Economic Services (2,676,796) 99,023 (2,577,773) Net Results 5,996,169 99,023 6,095,192 Total Comprehensive income 6,133,724 99,023 6,232,747
Statement of Financial Position As at 30 June 2013 Inventories 490,972 (93,788) 397,184 TOTAL CURRENT ASSETS 39,004,659 (93,788) 38,910,871 Property, Plant & Equipment 91,884,686 (17,132,024) 74,752,662 Infrastructure 146,385,884 17,041,181 163,427,065 Investment Property 4,509,000 49 4,509,049 TOTAL NON-CURRENT ASSETS 243,546,037 (90,794) 243,455,243 TOTAL ASSETS 282,550,696 (184,582) 282,366,114 Retained Surplus 236,195,295 (184,582) 236,010,713 NET ASSETS/TOTAL EQUITY 264,969,226 (184,582) 264,784,644 As at 30 June 2012 Property, Plant & Equipment 86,060,962 (283,654) 85,777,308 Investment Property 4,696,875 49 4,696,924 TOTAL NON-CURRENT ASSETS 234,222,250 (283,605) 233,938,645 TOTAL ASSETS 270,606,000 (283,605) 270,322,395 Retained Surplus 229,893,253 (283,605) 229,609,648 NET ASSETS/TOTAL EQUITY 94 258,835,502 (283,605) 258,551,897
Page 68 CITY OF KALGOORLIE-BOULDER NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2014
34. PRIOR PERIOD CORRECTIONS (Continued)
Original Amount of Adjusted Effect of the above: Balance Adjustment Balance $ $ $
Statement of changes in Equity RETAINED SURPLUS - Net Results/Total Comprehensive Income 5,996,169 99,023 6,095,192 RETAINED SURPLUS - Balance as at 30 June 2013 236,195,295 (184,582) 236,010,713 TOTAL EQUITY - Net Results 5,996,169 99,023 6,095,192 TOTAL EQUITY - Total Comprehensive income 6,133,724 99,023 6,232,747 TOTAL EQUITY - Balance as at 30 June 2013 264,969,226 (184,582) 264,784,644
Rate Setting Statement Expense - Economic Services (2,693,000) 99,023 (2,593,977) Depreciation and Amortisation on Assets 9,839,680 (99,023) 9,740,657
Note 2 (a) (i) - Depreciation Buildings 2,217,295 (99,023) 2,118,272
Note 6 - PROPERTY, PLANT & EQUIPMENT Council Controlled Land at: - Cost 0 8,784,521 8,784,521 Freehold Land at: - Cost 717,993 93,739 811,732 Buildings at: - Cost 89,705,333 (14,834,801) 74,870,532 Buildings at: Less: Accumulated Depreciation (21,035,055) (183,808) (21,218,863) Total Buildings 68,670,278 (15,018,609) 53,651,669 Total Land & Buildings 81,023,115 (17,775,193) 63,247,922 Work in Progress at: - Cost 0 643,169 643,169 (a) Movements in Carrying Amounts Balance at the Beginning of the Year - Total Buildings 68,670,278 (15,018,609) 53,651,669 Balance at the Beginning of the Year - Total 91,884,686 (17,132,024) 74,752,662
Note 7A - INFRASTRUCTURE Water Conservation at: - Cost 0 5,406,337 5,406,337 (a) Movements in Carrying Amounts Balance at the Beginning of the Year - Water Conservation 0 5,406,337 5,406,337 Balance at the Beginning of the Year - Total 146,385,884 17,041,181 163,427,065
Note 13 - NOTES TO STATEMENT OF CASH FLOW (b) Reconciliation of Net Cash Provided by Operating Activities to Net Result Net Result 5,996,169 99,023 6,095,192 Depreciation 9,839,680 (99,023) 9,740,657
Note 17 - TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY Economic Services 9,594,014 (184,582) 9,409,432 Total 282,550,696 (184,582) 282,366,114
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