Shire of Esperance Shire of Esperance

SHIRE OF ESPERANCE ANNUAL REPORT

2004 – 2005

3 Table of Contents President...... 6 Councillors ...... 8 Chief Executive Officer...... 9 Executive Management Team...... 10 Executive Services...... 12 Executive Services Team Profile...... 12 Members...... 13 Esperance Townsite Foreshore Master Plan ...... 14 Shark Lake Industrial Park...... 15 Essence of Esperance Strategic Plan ...... 16 Community Services ...... 18 Community Services Team Profile ...... 18 Community Services Information ...... 19 Disability Services...... 20 Coastal Services...... 22 Ranger Services ...... 23 Recreation and Sporting Services ...... 24 Recharge Health and Fitness Centre Programmes ...... 29 External Health and Fitness Programmes and Community Partnerships...... 29 Esperance Public Library...... 35 Community Events...... 37 Community Development Fund...... 41 Seniors...... 42 Home and Community Care...... 43 Volunteer Management Programme ...... 45 Development Services ...... 48 Development Services Team Profile ...... 48 Town Planning Scheme Review & Local Planning Strategy...... 49 Flinders ...... 49 Development Application Approvals...... 49 Building Maintenance...... 50 Building Activity...... 50 Community Heritage Committee ...... 51 Health and Environmental Services...... 52 Natural Resource & Environment Advisory Committee...... 53 Engineering Services ...... 54 Engineering Services Team Profile ...... 54 Road Asset & Expenditure...... 55 Roads to Recovery ...... 55 Regional Road Funds...... 56 Private Contracts...... 56 Foreshore Renourishment...... 57 Town Works...... 57 Esperance Cemetery...... 57 Coastal Trails and Beach Access...... 58 Other Projects ...... 58 Community Recycling Programme...... 58 Commercial Recycling...... 59 Recycling Tours ...... 59 4 Bag Smart Campaign ...... 60 Confidential Shredding Service...... 60 Bulk Verge Collections...... 60 Corporate Services ...... 61 Corporate Services Team Profile...... 61 Financial Services...... 62 Information Technology ...... 62 Bushfire Control and Emergency Services...... 62 Native Title and Aboriginal Heritage ...... 63 Leases and Legal Documents...... 63 Records Management ...... 63 Communications...... 63 National Competition Policy Statement ...... 63 Competitive Neutrality...... 64 Structural Review of Public Monopolies ...... 64 Legislative Review ...... 65 Report on Principal Activities...... 65 1. Esperance Airport and Aerodrome...... 65 2. Plant Replacement...... 66 3. Bay of Isles Leisure Centre...... 66 4. Waste Management...... 67 5. Building Maintenance/ Refurbishment...... 67 6. Major Land Developments...... 68 Financial Report for Year Ended 30 June, 2005...... 68

Introduction

President

It gives me great pleasure to present to you the Annual Report for 2004-05. The last 12 months have been very productive with several key projects either making significant progress or nearing completion.

One of the major decisions by Council in 2003-04 was to move to a 2 ward system with representation from 11 councillors. This system came into effect at the council elections held in May 2005.

The elections saw two long standing and dedicated Councillors, Julie Starcevich and Don Paterson, elect not to nominate for a further term. I would like to take this opportunity to thank them for the significant contribution they have made in improving the quality of life for all members of the community through the commitment and the leadership they have provided over many years. Council representation is not any easy task, with large demands both personally and professionally, and to have served the community with the passion they have for so long deserves recognition.

I would also like to acknowledge the excellent contribution made by Councillor Warren Slater during his 4 years on Council, who also elected not to nominate for a further term.

Councillor Dick Thorp, who resigned from Council in 2004, should also be recognised for his contribution during his time on Council.

The elections also saw Councillors Louise Paterson and Brian Pearce return to Council and Esperance’s first indigenous Councillor, Ron (Doc) Reynolds elected to Council. It was also pleasing to see Councillors Beverley Stewart, Nigel Walker, Christine Smith, Buck Rodgers, Tony Ietto, Ron Padgurskis and Peter Paxton nominate and be successful in being re-elected to Council.

I am sure that all Councillors will be looking forward to the challenge of guiding Esperance through a period of unprecedented growth and development.

Work has commenced on the construction of the BHP Billiton Ravensthorpe Nickel Project, with the effects on the demand for housing already being felt as a result of the decision to locate the mine’s operational workforce in Esperance and Hopetoun. The challenge over the next several years will be to ensure that Esperance maximises any economic benefits that arise as a result of the project.

The unprecedented demand for housing has seen several new housing estates being developed and housing construction commencing at an unparalleled level. This has placed a significant pressure on Council to ensure that development occurs in the best possible way, and on Council staff in processing the many building approvals. I am pleased to say that thus far Council and staff have met the challenge.

6 Work on Council’s Flinders development continues with an Overall Development Plan (ODP) being prepared for submission to the Western Australian Planning Commission. As a result of consultation with private landowners during the development of the ODP the initial proposal to develop canal blocks in the eastern portion of the development did not come to fruition.

The development of the Shark Lake Industrial Park continues to progress. In February 2005 the Shire, in partnership with the Esperance Port Authority, acquired a site 13km north of town on the Esperance- Coolgardie Hwy, and in May full environmental and town planning approvals were achieved. The Shire and Port are now seeking a partnership with the State and Federal governments to assist with the development of infrastructure at the Park.

One of the significant achievements for 2004-05 was the completion of the Esperance Townsite Foreshore Redevelopment Master Plan, which was received by Council in May 2005. The catalyst for development of the Master Plan was the need to find a permanent solution to the ongoing foreshore erosion problems. Upon formal endorsement of the recommendations of the Master Plan by Council, work will commence on the next phase of the project which will include the development of an implementation strategy and identification of funding sources.

Council has worked hard in lobbying State and Federal Ministers on a number of issues during their visits to Esperance in 2004-05. The main issues highlighted included the need for upgrades to the Esperance Senior High School and Esperance District Hospital, investment in infrastructure at the Shark Lake Industrial Park and further development of the Transport Corridor to the Port, as well as the need to fund construction of the erosion control measures for the townsite foreshore. These issues were again highlighted during a visit by State Cabinet in August 2005. It was very pleasing to be advised that funding has been secured for the upgrade to the school and planning work to be commenced for the hospital upgrades. However, we will need to continue our pressure on the State and Federal Governments in relation to the other important projects.

As in previous years, the improvement and maintenance of the Shire’s 4,500 km road network continues to be a major focus, with Council spending almost in excess of $8 million during 2004-05. Two of the key projects undertaken during the year were the widening of Myrup and Grigg Roads to 7.4 metres, due to their role as strategic grain haulage routes.

I would like to express my sincere appreciation to the many people who serve on Council’s management and advisory committees. Their passion and commitment have made a significant contribution towards improving the many services provided to the community. The work undertaken by the Service Clubs and volunteers throughout the community, which does so much to improve the quality of life we all enjoy, is considerable and also deserves recognition. We are certainly very fortunate to live in a community that contributes so much through its volunteers.

I wish to thank the Chief Executive Officer, Michael Archer and his dedicated staff who all provide great service to Council and the people of Esperance, by converting Council decisions to action and providing the community with the services and facilities they enjoy.

Finally, I would like to thank my fellow Councillors, especially my deputy Beverley Stewart, for their dedication and commitment in striving to make correct decisions that ensure our community continues to prosper and be served at the highest level.

Cr Ian Mickel, JP, FAICD Shire President

7 Councillors

8 Chief Executive Officer

As a result of its fiscal management policies the Shire of Esperance remains in a healthy financial position, whilst continuing to deliver a high level of service to the community. The 2004-05 financial year has been a productive one for Council, with many strategically important projects making significant progress or being completed. Major achievements during the year included: • Acquisition of the Shark Lake Industrial Park site and the commencement of the Outline Development Plan phase and infrastructure planning. • Completion of a major planning study of the Esperance Townsite Foreshore to identify opportunities for future recreational, social, cultural and economic development. • Continued planning of the new suburb of Flinders, with the finalisation of Stage 1 marketing and sale of 33 lots, and the further planning of stage 2 release and outline development plan of the whole subdivision. • Continued clear audits and management reports in relation to Council’s Statutory and Legislative obligations under various Acts of Parliament. In this respect, it was pleasing to see the Shire’s Corporate Services team recognised with a Certificate of Excellence in Financial Management awarded by the Minister for Local Government and Regional Development. • A continued priority being given to maintenance and refurbishment of Council’s buildings and facilities to ensure their standards meet community expectations. • A continued focus on maintaining and improving the Shire’s vast networks of roads, streets and footpaths to accommodate larger vehicle masses and community safety expectations. • Further planning, design work and grant funding applications for the further development of the Bay of Isles Leisure Centre, incorporating a new indoor sports stadium facility The Shire continues to maintain a close working relationship with BHP-Billiton and other key stakeholders in relationship to the development of the Ravensthorpe Nickel Project, to maximise opportunities for economic and social benefits for the South East Region. As outlined in previous years, Local Government in regional areas continues to face critical challenges in recruiting and retaining qualified and experienced staff in many of the more specialised areas of operations. Fortunately, the Council has been successful in recruiting staff against this trend with innovative strategies, which has resulted in most key positions within the Shire currently being filled. Finally, I would like to thank all my Senior Executive Managers, Paul Breman, Rod Hilton, Doug Pearson and Richard Brooks, for their dedication and support to the Council and myself and to all the staff for assisting Council in achieving its goals to making Esperance a great place to live. I would also like to express a final note of thanks to my Secretary, Mrs Beverley Hoey for her continued support and assistance.

Michael S L Archer Chief Executive Officer 9

Executive Management Team

Chief Executive Officer

Mike Archer

• Council Members Services • Agendas & Minute taking • Policy Making • Community Development • Strategic Planning • Major Projects • External Relations

Executive Manager Executive Manager Executive Manager Executive Manager Community Services Engineering Services Development Services Corporate Services

Rod Hilton Doug Pearson Richard Brookes Paul Breman

• • • Community Development • Roadworks Town & Regional Planning Financial Management • • • Home & Community Care • Drainage Health Information Technology • • • Volunteer Management • Infrastructure Management Environmental Management Rates • • • Ranger Services • Parks & Gardens Asset Management Human Resources • • • Library & Information Services • Plant & Equipment Property Management Licensing • • Customer Services • Airport Customer Service • • Recreation Services • Cemetery Bushfire Services • • Disability Services • Recycling Promotion & Waste Records Management • Youth Services Management • Recycling Facility

Services

Executive Services

Executive Services Team Profile CHIEF EXECUTIVE OFFI CER STATUTORY COMPLIANCE FINANCIAL PLANNING MR MICHAEL ARCHER CUSTOMER SERVICE ASSET MANAGEMENT HUMAN RESOURCES MANAGEMENT SUPERVISION PUBLIC RELATIONS COUNCIL SPOKESPERSON STRATEGIC PLANNING/ HUMAN RESOURCES GOVERNANCE SERVICES MAJOR PROJECTS MANAGEMENT

STRATEGIC PLANNING STATUTORY OBLIGATIONS UNDER FINANCIAL MODELLING ACT AGENDAS & MINUTES GOAL ACHIEVEMENTS PRODUCTIVITY IMPROVEMENT COUNCIL/COMMITTEE MEETINGS KEY PERFORMANCE INDICATORS PROGRAM – (DEPARTMENTAL) COUNCILLOR ADVICE CORPORATE PLANNING SENIOR STAFF RECRUITMENT, EXECUTIVE SUPPORT ORGANISATIONAL PLANNING APPRAISALS, REVIEWS FUNCTIONS AND CIVIC ECONOMIC DEVELOPMENT (DEPARTMENTAL) RECEPTIONS SHARK LAKE INDUSTRIAL PARK PROFESSIONAL DEVELOPMENT OF ADVOCACY AND FLINDERS SUBDIVISION EXECUTIVE STAFF IMPLEMENTATION ESPERANCE TOWNSITE FUTURE HR MANAGER MEDIA AND PUBLIC RELATIONS FORESHORE PLANNING RETURNING OFFICER LOCAL RAVENSTHORPE NICKEL GOVT ELECTIONS PROJECT ADVISORY COMMITTEES STRATEGIC PLANNING TWIN TOWNS LOCAL GOVERNMENT ACT LEGAL OPINIONS DELEGATED AUTHORITY POLICY DEVELOPMENT Executive Services Team SENIORS XMAS DINNER CITIZEN OF THE MONTH Michael Archer, Beverley Hoey, Shayne Flanagan AUSTRALIA DAY CITIZENSHIP CEREMONIES

12 Members

The bi-annual Council elections were held on 7 th May 2005. As a result of a ward boundary review, which is a statutory requirement the Shire of Esperance is now represented by eleven (11) Councillors in two (2) wards; i.e Town Ward seven (7) Councillors and Rural Ward four (4) Councillors. As a result of the ward boundary review there was a total ‘spill’ of Councillors, with the result being as follows:

Town Ward – Cr Beverley Stewart – Deputy President (Retiring 2009); Cr Wayne (Buck) Rodgers (Retiring 2009); Cr Christine Smith (Retiring 2009); Cr Peter Paxton (Retiring 2009); Cr Louise Paterson (Retiring 2007); Cr Ron (Doc) Reynolds (Retiring 2007); Cr Brian Pearce (Retiring 2007).

Rural Ward – Cr Ian Mickel – Shire President (Retiring 2009); Cr Tony Ietto (Retiring 2009); Cr Ron Padgurskis (Retiring 2007) Cr Nigel Walker (Retiring 2007).

Crs Julie Starcevich; Don Paterson & Warren Slater elected not to stand for re- election in May 2005.

Membership of Council’s Standing Committees is as follows:

Engineering & Development Services : Councillors Mickel; Ietto; Paxton; Smith; Rodgers & Walker.

Corporate & Community Services: Councillors Mickel; Stewart; Padgurskis; Pearce; Paterson & Reynolds.

Along with Councillor representation on various Community Advisory Committees/ Working Groups, Council has introduced a “Portfolio” system with four (4) Councillors allocated to each Portfolio for ease of administration. The Portfolios are as follows:

Environment and Coastal Management

Health, Education and Training

Recreation and Culture

Crime and Community Safety

Social and Community Development

Regional Development, Government Services, Tourism

Local Government Assets/ Infrastructure

Governance, Administration & Finance

The following table details Councillor attendances at the Engineering & Development Services Committee, the Corporate & Community Services Committee, Ordinary and Special Council Meeting held throughout the year.

Council Ordinary Special Engineering & Corporate & Attendance Council Council Development Community Meetings Meetings Services Services during period during period Committee Committee Meetings Meetings (12) (12) (12) (12) Cr Mickel 12 12 11 11 Cr Stewart 11 11 2 (as deputy) 10 Cr Ietto 12 8 10 9 (as deputy) Cr Rodgers 10 11 10 8 Cr Padgurskis 10 10 9 (as deputy) 11 Cr Smith 12 9 11 3 (as deputy Cr Walker 8 8 9 2 (as deputy) Cr Paxton 12 9 12 3 (as deputy) Cr L Paterson 2 4 (elected May 05) Cr Reynolds 1 3 1 (elected May 05) Cr Pearce 2 5 2 (elected May 05) Cr Starcevich 10 6 1 (as deputy) 9 (retired May 05) Cr D Paterson 6 2 6 (retired May 05) Cr D Thorp 2 (Resigned Oct 05) Cr W Slater 9 2 5 4 (as deputy) (retired May 05)

The Council continues involvement in 58 advisory and community committees

Esperance Townsite Foreshore Master Plan

The Esperance Townsite Foreshore Redevelopment Master Plan was commissioned by the Shire in May 2004, to guide the enhancement and future development of the Esperance Townsite Foreshore. The fundamental intent of the Master Plan was to provide a framework within which the Esperance Foreshore could be regenerated from the Port to Castletown Quays, having regard to social, environmental, cultural and economic needs. In this context, the specific objectives of the project were: • To meet community values and aspirations. • To maximise opportunities to develop the relationship between the CBD and Foreshore Area.

14 • The integration of traffic management and parking with appropriate development opportunities with a coherent framework. • Through Environmentally Sustainable Design, preserve and protect the Esperance Townsite Foreshore, particularly the Esperance Tanker Jetty for the future by adding value to the utilisation of the precinct. • To identify appropriate development and investment opportunities integrated with tourism, recreation, commercial and community activities. The Master Plan is intended to explain how the Esperance Townsite Foreshore may be developed from a conceptual perspective. It is not intended to prescribe in detail how development should be designed. In this respect, it will be used by Council to guide structure planning and the production of Outline Development Plans (ODP) in the future. Council received the final Master Plan report from project managers Benchmark Projects in May 2005, and subsequently requested that it be released to the community for public comment. In this respect, residents were provided with the opportunity to view the report at the Shire Office, Public Library and the Shire website during August/ September 2005. Public displays were also held at the Boulevard Shopping Centre and Dewson’s during September to provide the public with the opportunity to discuss elements of the report with Shire representatives. A Public Comment Form was also made available to give the public the facility to submit their views on the various aspects of the Master Plan, with submissions closing on 30 September 2005. It is intended to brief members of the Foreshore Master Plan Steering Committee on the

outcome of the public comment process during October 2005.

Shark Lake Industrial Park

In April 1997, a study conducted by the Shire identified the need to locate and plan for the future use of general industrial land in the Shire. By April 2001, funding had been secured to establish a steering committee, comprising representatives from Council, Esperance Port Authority, Esperance Chamber of Commerce, and Goldfields Esperance Development Commission, with a brief to oversee the implementation of the planning phase for the project.

By March 2003, a suitable site situated in the Shark Lake area was identified, and a formal agreement entered in to between the Shire and Esperance Port Authority to commence negotiations to purchase the land. At the same time, an anchor tenant was identified in the form of CBH, who would be expected to occupy a significant portion of the proposed development.

15 The land was chosen due to its ideal location and physical attributes, including:

• Rail access to the block from the South without crossing the Coolgardie- Esperance Hwy and a spur can be constructed for northern access by rail and gas; • It has excellent access to major roads (Shark Lake Road and Esperance- Coolgardie Hwy), critical for grain movements and future timber products stockpiling); • It was already zoned for rural and was already cleared freehold land; and • Existing well-established tree buffers. In February 2005 the Shire, in partnership with the Esperance Port Authority (EPA) acquired the site and in May full environmental and town planning approvals were achieved. The Shire and EPA are now seeking a commitment from both the State and Federal governments to contribute financially towards the development of this strategic project, which will significantly benefit the whole South-east and Goldfields region.

The Shire has submitted an application to the Federal Government for Regional Partnership funding for critical infrastructure such as gas connection, drainage on-site retention, power, and revegetation of drainage/buffer areas. Funding has also been sought from the State Government under the Regional Infrastructure Funding Programme to assist in the construction of a rail spur into the park.

The Shire and Port are currently developing an Outline Development Plan for the project, which, it is envisaged, will be submitted to the Western Australian Planning Commission for consideration in October 2005. Upon the Commission’s endorsement, work will commence on sub-dividing the Park into super-lots, possibly in late 2005/early 2006.

Essence of Esperance Strategic Plan

The Essence of Esperance Strategic Plan was the culmination of a process that commenced in late 1999 and was finalised in early 2001. In the period since the adoption of the strategic plan, many of the objectives and philosophies that underpin the strategic plan have been achieved or are in the process of being implemented.

As part of its commitment to a living Strategic Plan, Council has committed to a continual review process to ensure that the plan remains relevant and targeted to achieving outcomes which are important to the community. In previous years the review process has been undertaken leading into the development of Council’s annual budget. However, with Council elections taking place in May 2005, it was considered that it would be more appropriate to postpone the review of the plan until 2005/06 which would allow current councillors to have input into the process.

16 It is expected that many of the key objectives identified in the 2004 review of the plan, will remain as priorities, including:

• The “Nulsen Urban Renewal Project” • Support for the proposal for a desalination plant in Esperance to supply water to the Goldfields and points in between • Upgrade of the aging power reticulation system • Lobby for increased specialist services to Esperance and the upgrade of the Esperance District Hospital, especially the Emergency Department • Support for the concept of a tuna farming trial off the coast of Esperance as long as it is carried out in a sustainable and environmentally sound manner and independently audited • Lobbying to ensure the benefits of regional projects flow on to the local community In addition, other priorities which may be considered for inclusion in the plan may include: • The establishment of a formal agreement with the Western Australian Government to facilitate the development of Esperance and, in particular, to progress major planned infrastructure projects. • Further development of the transport corridor into the Esperance Port to ensure that it has the capability to accommodate current and future transport requirements for the Port, whilst ensuring that measures are implemented which ensure that the Esperance Community is not adversely impacted. This should include the construction of infrastructure improvements to resolve traffic related issues , especially the need for grade separation at the entry to the port at Harbour Rd/Rail. • The further development and construction of key infrastructure at the Shark Lake Industrial Park. • Implementation of the recommendations set out in the Esperance Townsite Foreshore Redevelopment Master Plan.

Community Services

EXTERNAL OPERATIONS Community Services Team Profile EXECUTIVE MANAGER CO MMUNITY SERVICES COMMUNITY PLANNING COMMUNITY CONSULTATION HR MANAGEMENT FINANCIAL MANAGEMENT MR ROD HILTON SUPERVISION

ADMINISTRATIVE RANGER RECREATION LIBRARY & COMMUNITY HOME & VOLUNTEER SERVICES SERVICES SERVICES INFORMATION SERVICES COMMUNITY MANAGEMENT SERVICES CARE SERVICES AGENDA PREPARATION • COMMUNITY CORPORATE & COMMMUNITY EDUCATION SERVICES • DOG CONTROL STAFF TRAINING • FACILITIES LITTER CONTROL MANAGEMENT POLICY DEVELOPMENT • INFORMATION YOUTH AGED CARE VOLUNTEER TRAINING PARKING CONTROL SPORT DEVELOPMENT ADVISORY COMMITTEES • CHILDREN’S LIBRARY FAMILY SENIORS CENTRE VOLUNTEER REFERRALS BEACH/ COASTAL RECREATION TIDY TOWNS • BUSHFIRE DISTRICT MULTICULTURAL AFFAIRS FUNDING DATA COLLECTION DEVELOPMENT DEVELOPMENT COMMUNITY PLANNING SPONSORSHIP FUNDRAISING DISABILITY SERVICES • LAW, ORDER & SPORTS FIELD ADMIN INFORMATION TOURISM & PROMOTION EVENT MANAGEMENT SPONSORSHIP YAC OTHER PUBLIC LEISURE PLANNING PLANNING MUSEUM VOLUNTEER M’MENT PROGRAMMING YOUTH CO-ORD NETWORK SAFETY MUSEUM EVENT MANAGEMENT EVENT MANAGEMENT CIVIC CENTRE AGED CARE/ SENIORS’ • CRIME & SAFETY BOILC SPONSORSHIP SPONSORSHIP ARTS & CULTIURE PLANNING PROGRAMMES CIVIC CENTRE PROGRAMMING PROGRAMMING DISABILITIES PROGRAMMING COASTAL RESERVES COASTAL CAMPING NULSEN URBAN GSG GROUNDS M’MENT ADVISORY COUNCIL SENIOR CITIZENS CENTRE SENIOR CITIZENS M’MENT CTTEE LAKE MONJINGUP DEVEL GRP SAFER WA COMMUNITY EVENTS ANNUAL XMAS PAGEANT AUSTRALIA DAY SPECIAL FUNCTIONS OCCUPATIONAL HEALTH & SAFETY COMMUNITY DEVELOPMENT FUND Community Services Team Rod Hilton, Darren Jones, Jayne Arnold, Thuriyya Ibrahim, Michelle Clarke, Renae Rance, Richard Hearne, Tom King, Bernie vonCastel, Library staff, HACC staff, Leisure Centre staff, Volunteer Centre staff, Jenny White (Senior Citizens Center Co-ordinator)

Community Services Information

Nulsen Urban Renewal Project Olympian way was selected as a trial location to introduce the Nulsen Urban Renewal Program. The program aims to raise the amenity of Nulsen to combat stagnant property prices and to reintroduce a sense of community.

A number of community consultations were held and surveys conducted to determine the expectations of Olympian way residents. As a result, bitumen footpaths and crossovers have been constructed, and processes have been put in place to replace the public access way between Olympian Way and Dalyup Drive with a road. The next stage will involve the planting of street trees and an upgrade of street lighting. The Olympian Way playground has also been targeted for improvements.

Esperance Museum The Museum continues to attract positive comments in its Visitors Book. Annual visits average 10,300 each year.

During this year the AL Harvester, Steam Crane and Saunderson & Gifkin tractor were restored. Keith Murray’s book “First There Came Ships” was launched and the Museum facilitated a very successful Dempster Homestead Open Day in March, as well as hosting the National High Wheelers rally in April.

The Esperance Port Authority offered to donate its’ “Customs Boat” to the museum which initiated a proposal to develop an attached Maritime Museum. Concept plans for the Maritime Museum, inclusive of improvements to the existing museum building, have been drawn and Council is awaiting funding opportunities to commence this project.

Esperance Civic Centre New carpets were installed within the Reception area and 200 new chairs placed on order, to replace the 30 year old carpet and chairs. The replacements will significantly improve the amenity of the facility.

Occupational Safety & Health The appointment of an Occupational Safety and Health Coordinator has raised the profile of risk assessment and hazard management throughout the organisation by the introduction of an Occupational Safety and Health Management Plan.

Management’s objective is to ensure that Councils working environment is as safe as possible.

Council’s vision is to be committed to setting the Occupational Safety and Health benchmark for Local Government Authorities through developing a culture and 19 processes that form part of daily business practices. Council will do this by providing a safe and healthy working environment for all employees, contractors, visitors and the community by conforming to current legislation, regulations, codes of practice, and appropriate national standards.

Mens Pit Stop program A total of 47 staff members participated in a “Pit Stop” health screening program during August 2004. The health issues of concern amongst staff include obesity (60% failed), alcohol consumption (60% failed), and testicular self examination (62% failed). Whilst positive results were obtained in the areas of smoking (78% do not smoke) coping skills (78% are not under stress), blood pressure (64% are within acceptable limits) and sun protection (98% take precautions).

Corporate Training The Esperance Island Hoppers took on the rest of the state in the Local Government Managers Australia annual management challenge. The team comprising Rod Hilton (mentor) and members Jessica Prince, Mark Caporn, Josie Roelofs, Adrianne Darling, Darren Jones, and Craig Shearer participated in a day long series of management challenges depicting a range of typical decision making situations likely to be encountered by local government managers. The team acquitted themselves well amid tough competition. The City of Joondalup won the challenge and went on to also win the National event.

Disability Services

Disability Services Planning Advisory Committee During 2004/05 the Disability Services Planning Advisory Committee continued to meet on a monthly basis to discuss and raise matters for Council consideration in respect of providing people with disabilities equitable access to community services and facilities. The committee comprises persons with disabilities, representatives of agencies providing support to persons with disabilities, and council officers.

Disability Services Planning The Advisory Committee developed a Disability Services Plan for the period 2003 to 2009. During 2004/05 the Committee continued to implement the plan, which has been supported by Council as funding resources became available. A copy of the plan is available on request.

Achievements in the five identified (Disability Services Act) categories are listed as follows: 1. Existing services are adapted to ensure they meet the needs of people with disabilities. • The acquisition of additional shelving for the Frank Collet public library has enabled shelf heights to be reduced so as to be more readily accessible.

20 • The addition of boutique shelving signage in the Frank Collet Public library enables book stocks to be displayed by category and author rather than author alone. The various categories are identifiable by picture symbols prominently displayed above each group. • A magnifying screen was kindly donated to the library to assist vision impaired people to read books, papers and other library literature. • A shaded gazebo with seating has been constructed at the cemetery in response to a request for additional seating from elderly people attending funerals and visiting the cemetery. Additional seating through sponsorship is being publicised. • Street seating has been provided in Randall and Hicks St. to provide rest stops for persons living at the aged care hostel, and at the hospital, to encourage people to walk and exercise. 2. Access to buildings and facilities is improved. • An internal self opening door was installed in the Shire administration office. • The access ramp to Frank Collet public library main entrance has been widened during an upgrade to the entry foyer to improve access for scooters. • The barrier safety fence between Bay of Isles Leisure Centre hydrotherapy pool and leisure pools has been removed to improve accessibility by mobility impaired people who previously experienced difficulty in opening the pool gate safety lock. • A dual use taxi bay and bus drop off and collection point has been established at the Boulevard shopping centre in response to concerns raised from bus and taxi operators collecting and delivering persons with disabilities. • The program of replacing concrete slab footpaths throughout the town with continuous surface paving is continuing. • Steps to the Rotary lookout have been edged with reflective paint to improve visibility to persons with vision impairment. • Ramps were added to playground equipment and concrete paths constructed to make playground equipment more accessible in the Grace Darling Park. • Worn floor coverings at the Bay of Isles Leisure Centre were replaced with non-slip tiles to provide strong visual and tactile contrasts between pool boundaries and walkways.

3. Information about services is provided in formats that meet the communication requirements of people with disabilities. • The Shire of Esperance web site continues to be upgraded with additional information. • A sign advising people that Shire documents are available on request in alternative formats has been made and is displayed on the reception counter. • The brochure designed during the previous reporting period providing information on accommodation and services available in Esperance for person with disabilities was formally launched.

21 4. Advice and services are delivered by staff that are aware of and understand the needs of people with disabilities. • The interaction and cooperation between members of the Disability Services Planning Advisory Committee and Shire of Esperance staff continues to assist in creating greater awareness of the special needs of persons with disabilities. 5. Opportunities are provided for persons with disabilities to participate in public consultations, grievance mechanisms and decision making processes. • The Shire of Esperance has continued production of a twice yearly newsletter that is distributed to all ratepayers to keep everyone informed of Council services, facilities, and new projects. • The dates of all council meetings are publicised in the local newspaper and opportunities are provided in the meeting agendas for public input and comment to Councillors. • Councillors with hearing impairment have been allocated seating in the Council Chambers close to the Presiding Member.

Coastal Services

Coastal Camping Grounds – Council’s Coastal Reserves Working Party focused attention on the Thomas River Camping ground. Facilities at the camping ground have also been improved by the addition of another toilet block, levelling and resurfacing of camping bays, upgrading the water supply, and redevelopment of the day picnic area. The objective being to retain traditional family camping values whilst providing a quality bush camping experience. Negotiations are nearing completion with the Department for Conservation and Land Management (CALM) to assume responsibility for the management of the Thomas River Camping Reserve for a trial period of 5 years.

At the western end of the Shire a community management programme is being trialed at the Munglinup Beach campsite. Camping fees of $8 a night have been charged. Campers will also benefit from a daily service whereby the camping facilities will be cleaned and rubbish removed. The Munglinup community has been given the task of protecting the environment surrounding the camping ground, as their contribution towards the sustainability of the camping area, since the camping area had been under the threat of closure 18 months ago. A new shower block has been constructed and an information bay is planned to be installed on the Munglinup Beach Road to provide information on camping options and local history.

During the year, camping bays at Alexander Bay have been levelled and resurfaced to improve the standard of the grounds.

New toilet facilities have also been provided at Wharton, Little Wharton and Quagi beaches.

Regrettably, there continues to be concern over the indiscriminate use of all terrain vehicles (ATV’s) in sensitive dune areas and the ongoing vandalism 22 of facilities that were provided by Council, particularly public toilets. As a general issue, the amount of damage to areas and facilities within the Shire of Esperance is causing Council to review its policies on providing public access to (and facilities in) remote locations.

Lake Monjingup Reserve – The Lake Monjingup Community Development committee and caretaker Mr Brian Warren have continued developing stage 2 of the reserve. A gas barbecue and picnic table have been installed at the reserve to compliment the recently planted Maze, which should become a popular attraction as the plants mature. ACTIV Industries continue to do a great job of maintaining the grounds .

Ranger Services Ranger Patrols The Ranger Service continued to operate night patrols of the Esperance township in conjunction with the Esperance Police at weekends during the summer months, in order to reduce vandalism and other anti social behaviour.

Junior Ranger Programme The Junior Ranger Programme continued at the Nulsen Primary School.

Overflow Camping - Christmas/New Year period Shire rangers were even busier this year coordinating the overflow camping arrangements at the Greater Sports Ground over the Christmas/New year period, due to the town’s caravan parks operating at full capacity.

Activities

Animal Control 2004-05 2003-04 2002-03 Dogs Impounded 397 341 279 Dogs Euthanased 103 90 71 Feral Cats Euthanased 25 48 47 Straying Stock Calls 92 77 49 Phone Calls/ Enquiries 4,815 4,531 3,838

Coastal Reserves All Coastal camp grounds continued to be well patronised during the year, with Council rangers carrying out normal maintenance and servicing of camp sites during the year. Assistance was also provided with the installation of composting toilet blocks at Thomas River and Little Wharton Beach and the upgrade of the compositing toilet block at Wharton Beach.

Lake Monjingup Reserve Lake Monjingup Reserve Information sign at Thomas River coastal res erve entrance. Tidy Towns The Rangers assisted organisers on the Tidy Towns Clean-Up days.

Recreation and Sporting Services

Bay of Isles Leisure Centre Minister’s Awards for Excellence The Shire entered the Bay of Isles Leisure Centre in the Minister’s Awards for Excellence in the category of Trainees during the 2004-05 year. The Centre was short listed in the finals of judging and was one of the runners up. This award is recognition of the outstanding work the Centre undertakes in promoting Traineeships to members of the local community. Over the past 4 years the Centre has employed 4 trainees, with 3 of the trainees undertaking Certificates in Community Recreation and 1 undertaking a Certificate in Fitness.

Neville Mulgat Customer Service Award Recreation Officer David Bell received the inaugural award for customer service. The award reinforces the Leisure Centre’s ethos of great customer service being a priority for all staff and was recognition of David’s excellent customer service.

Statistics During 2004-05 the Bay of Isles Leisure Centre continued to build on previous patronage levels.

Casual Aquatic entries 88,062 Casual Gym entries 1,736 Casual Group Fitness class entries 5,512 Casual Crèche entries 2,365 Sports Hall entries 7,458 Birthday Parties 123 Memberships 737 members for a total of 22,766 visits

Major Activities ‘’It’s a Knockout” for 45+ The 4 th annual ‘’It’s A Knockout’’ (for 45+) was held on the 12th May 2005 at the Bay of Isles Leisure Centre with events such as Scooter T-Ball, a Coin Hunt, Bean Bag Basketball, Balloon Lift off, Written Quiz, Walking Relay, a physical quiz, Tunnel Ball, Leader Ball, Bubble and Run and the Celebrity Egg Throwing Competition. The 24 Probus team made it back to back titles and although the participants were very competitive, they were good spirited in the manner in which they played the games; the emphasis of the day was on participation and promoting the services available at the Bay of Isles Leisure Centre.

Corporate ‘’It’s a Knockout” The 3rd annual Corporate “It’s a Knockout” was held on Sunday, 15 th May 2005. The aim of the competition was to encourage businesses and clubs to compete in a range of fun activities and foster team and community spirit. The Corporate “It’s a Knockout” shield donated by Trophy Kings was won by the Esperance Amateur Swimming Club and is on display at the Leisure Centre. Six teams competed on the day, and these were mainly entered by sporting clubs, and the majority of these were under 16yrs old. It has been decided that in the future this event will target youth and endeavour to build a greater following for the Centre amongst the younger community of Esperance.

Goldfield Short Course Swimming Championships The Short Course Swimming Championships were held at the Bay of Isles Leisure Centre for the first time on the weekend of 19 th and 20 th February 2005. Participants came from Kalgoorlie, Boulder, Ravensthorpe, Norseman, and other Goldfields communities to compete against the Esperance swimmers. Competition was fierce with medals being won by swimmers from a variety of clubs. All swimmers enjoyed the facilities provided by the Bay of Isles Leisure Centre and the carnival was a resounding success.

Swim to Woody Island V The fifth annual Swim to Woody Island commenced in the middle of June and ran until the end of September. Added time was allowed for this program due to the Aquatic area being closed for four weeks during the normal running time of the swim. A total of 305 people entered the program and out of the 119 who completed the allotted distances, 20km for children and seniors and 35km for adults, approximately 80 were treated to a free cruise to Woody Island and a BBQ lunch courtesy of the program’s sponsors Mackenzie’s Island Cruises. A total of 262,167 laps were recorded by swimmers, with Shelly Cumbers swimming 6,628 laps, to be the most prolific swimmer in the program. Participants were able to purchase a souvenir “I swam to Woody Island” t-shirt to commemorate their efforts.

25 Swim Around Australia The ‘’Swim Around Australia’’ event involved swimmers tallying up the distance they swam in the Leisure Centre pool and plotting the distance onto a map of Australia. The program recommenced from Coolangatta and after tallying up all of the laps swum by the participants this year, it revealed that they had swum down the east coast of Australia as far as Malacoota. There was approximately 50 participants in the Swim Around Australia program, with Chris Baldwin contributing 6,000 laps between December 04 to May 05, to be the greatest contributor to the team tally.

Pool Parties Introduction of “Eliminator” Aqua Inflatable - The purchase of the aqua inflatable, the “Eliminator”, saw the entry numbers on weekends increase significantly. A pool party was held on Sunday 29 th August 2004 to introduce children to the new attraction, with 75 people attending.

Youth Advisory Council – The Leisure Centre and Youth Advisory Council teamed up to provide an event, targeted to 12-18 year olds. Attractions included the Eliminator, music and a variety of new pool games which appealed to the target age group. Approx 90 young people attended the event. Centre staff and YAC organisers were particularly grateful to local businesses who supplied prizes and incentives as give-aways on the day.

Special Needs Swimming Lessons The BOILC Swim School initiated new Special Needs Swimming classes for local Primary Schools. These classes provide swimming and water confidence lessons to children with disabilities, who cannot participate in standard swimming lessons. Instructors and carers underwent training in this area earlier in the year. The Rotary Club’s support in providing funding to facilitate this program is gratefully acknowledged.

Bronze Medallion Courses Three full bronze medallion and three re-qualification courses were run during the 2004- 05 financial year.

Pool Lifeguard All staff employed at the Centre attended the Lifeguard Re-qualification course held on Friday 5 th and Sunday 7 th August 2004 as part of requirements for their respective positions. A further 6 local youth completed the full course, providing them with the opportunity to find casual employment at the Centre, which also provides Centre Management with a wider pool of potential employees. A number of Goldfields people also undertook the re-qualification and full course over the weekend.

Swim School Qualifications Swim School instructors underwent training in infant aquatics in January 2005. There are now 8 Instructors who hold infant aquatic qualifications, which are essential for conducting lessons for children under 5yrs old. Staff also undertook in-service training at the commencement of each Term to ensure that they are proficient in rescue and resuscitation techniques.

26 Regular Aquatic Activities: • Monday Recovery Day - utilisation of the Spa and Sauna as well as the swimming pools by sports people recovering from weekend sport activities. • Go Swim – this program, which has been renamed SHARKS, is where children were taught drills so that they are better equipped to join a swimming club and progress to competitive swimming. • Aqua Aerobics – low impact exercise classes for increasing cardiovascular fitness. • SwimFit – structured lessons (in a non-competitive, supportive and fun atmosphere) for improving stroke technique and training strategies are predominantly undertaken by adults. • Swim School – catered for a wide range of patrons, including infants, pre- schoolers, school age and adult Learn to Swim and Go Swim participants. • Birthday Parties – an average of two birthday parties per week were catered for through the Wet Deck Café. Choices of either traditional party food or a healthy option were offered and the Aqua Inflatables were available for hire. • Eliminator Aqua Inflatable – the Eliminator is inflated on weekends, public and school holidays for patrons to test their balance and skill. The Eliminator is also available for groups to hire for parties, club events or used during Leisure Centre parties. • Other Regularly Available Equipment (free) - Floating Mats, Tubes, Turbo pool, Seated Spa, and the Dolphin Water Fountain; • Hire Equipment - pool buoys, kickboards, hand paddles and deep water running belts, and inflatables were made available for hire by the patrons.. • Esperance Amateur Swimming Club – The Swimming Club held regular training sessions and time trials in the Lap Pool at the Leisure Centre. There Club caters for both children who swim competitively and those that wish to swim for fun. • Esperance Goldfields Surf Lifesaving Club – The Surf Club trained regularly in the Lap pool during the winter months, and held their Surf Bronze proficiency swims in the pool as well. • Esperance Triathlon Club – At the commencement of the Triathlon season the Tri Club held a number of short course events at the Bay of Isles Leisure Centre.

Hydrotherapy Pool • Home and Community Care – HACC clients (seniors and the disabled) used the hydrotherapy pool for exercise and fellowship. • Esperance Hospital Physiotherapy utilised this facilitty to assist clients with their rehabilitation, and as an introduction to exercise. • Self Help Exercise Group undertook low impact exercise programmes, with participation including a mix of male and female senior citizens. • Esperance Physiotherapy, Bay of Isles Swim School, EDRA Disability Services and Take Heart Exercise Group also utilised the facility for a number of activities.

27 Swimming Groups The following swimming groups continued to utilise the Bay of Isles Leisure Centre during 2004-05: • Esperance Amateur Swimming Club – a group of dedicated young people from the club participate in competitions around the State. • Esperance Goldfields Surf Lifesaving Club – regular swimming training and CPR sessions were held. • Vacation Swimming Lessons – catered for in excess of 280 children during the October and January school holidays. • In-term School Swimming Lessons – part of the Education Department’s programme for Primary School students from Esperance and the surrounding districts. • Education Support Centre - swimming lessons for students from the Esperance Senior High School Education Support Centre.

Bay of Isles Swim School During 2004-05 the Bay of Isles Swim School undertook the following regular programmes: • Parent/Baby Classes (6 month – 3 years) • Pre-School Learn-to-Swim (3 – 5 years) • School Age Learn-to-Swim (5-15 years) • SHARKS – squad training • Adult Beginner Classes/ Adult Learn-to-Swim Classes • Swim Fit • Individual 1 to 1 Classes • Special Needs Classes for disabled patrons • Bronze Medallion Courses and Re-qualifications

Activities The following additional activities were undertaken at the Bay of Isles Leisure Centre during 2004-05: • Sporting Clubs – aqua aerobics classes particularly for the netball clubs, use of aquatic area also fitness classes and gym by football clubs • Esperance Senior High School – physical education programmes, including water polo, triathlon training, snorkelling, and water safety. A number of students also utilise the Gymnasium. • Sporting Club Windups – especially by junior sporting clubs. • Esperance Diving & Fishing – conducting regular scuba training sessions.

28 Recharge Health and Fitness Centre Programmes The programmes and classes at the Recharge Health and Fitness Centre continued to deliver good outcomes as part of the Leisure Centre during 2004/05. New and innovative programmes were initiated as a result of input from the community, management and especially the Health and Fitness instructors, who have really taken ‘ownership’ of this area of the Centre.

The following is a list of classes and programmes undertaken throughout the year.

• Circuit: A cross training workout using a combination of gymnasium equipment and cardio exercises that promises to deliver results.

• Step and Shape : As the name suggests, Step and Shape utilises a step to work the abdominal, buttock and thigh muscles to tone and strengthen these areas. Conducted in the sports hall this is a fun workout that delivers results quickly.

• Aquaburner: Exercising in water, reducing the impact placed on the joints. These classes are designed to accommodate everyone from the beginner to the extremely fit. Aquaburner incorporates aerobic components as well as new deep water exercise concepts.

• PowerBar: This class incorporates barbells and weights to music. Focusing on correct resistance training techniques and the use of light weights and high repetitions, this class promotes muscle tone and conditioning as well as an increased fat burning ability.

• Low Impact Circuit : This is a fantastic class for any participant wanting a low intensity workout. Ideal for the beginner or seniors needing to increase bone density, strength and overall well being.

• Pilates : This class introduces people to the Pilates principles. Pilates assists in increasing core strength, increase flexibility and improves concentration and co-ordination .

• Step Circuit: Combines the versatility of a Circuit workout with some heart pumping Step and Shape routines.

• SwimFit : SwimFit is a structured swimming session designed to improve stroke technique and provide training strategies for improved fitness and stroke development. SwimFit is conducted by qualified instructors for novice and elite swimmers and is non-competitive, supportive and fun.

• Step Attack : Variety is the key to getting great fitness results. This combat workout has so much variety, it is the workout that will make the difference and change body shape fast. Participants get more muscle tone and reduce body fat in a very short period of time. The best thing about the Step Attack workout is that it's fun.

External Health and Fitness Programmes and Community Partnerships Active After-School Communities and the BOILC The Bay of isles Leisure Centre formed a partnership with the Active After School Communities Program, which will enable the Centre to train a number of young local people in the skills needed to obtain employment at the Centre. These skills include qualifications in Bronze Medallion, First Aid, the Pool Lifeguard Certificate and the Australian Sports Commission Coaching Certificate. AASC and the BOILC sourced DSR

29 funding to train these young people free of charge. This will ensure that the Leisure Centre has a pool of qualified staff to draw from over the next 2-3yrs for positions within the Kiosk, Reception and Pool Lifeguard areas.

Wongutha CAPS A number of students from Wongutha CAPS Aboriginal Residential College participated in a range of Group Fitness Classes tailored specifically for their needs. Leisure Centre Fitness Instructors designed programs that the students found achievable and fun, and allowed them to exercise within a group situation that was non-threatening and supportive.

School Work Experience Program The Leisure Centre hosted a number of students from Esperance Senior High School and Wongutha CAPS who were interested in the Recreation and Fitness industry as a career. These students were inducted into a range of tasks that staff undertook on a day to day basis that would give them a feel for the types of duties staff were required to perform each day. It was pleasing to see a number of these students carry on and acquire the necessary qualifications to enable them to apply for and achieve positions within the organisation as Junior Recreation Officers.

Self Help Exercise Group The Self Help Exercise Group is a group of predominantly senior citizens who undertake exercise sessions in the Hydrotherapy pool three times each week. There are three sessions each Monday, Wednesday and Friday morning, with a volunteer instructor taking each group through a range of stretching and strengthening routines. Participants, Management and Staff members have regular morning teas, hosted by the Centre to enable participants and Centre staff to socialise and for participants to provide feedback to the Centre.

Take Heart Exercise Group The Take Heart Exercise Group met on a regular basis during 2004/05. A number of participants who are new to the program exercise in the Hydrotherapy pool, while members of the group who have been attending for a longer period of time enjoyed working out in the Gymnasium.

Austswim The Leisure Centre and Austswim provides swimming instructor courses on a yearly basis. Courses are presented by Austswim instructors and the Leisure Centre provides the facilities and Exam supervisors. Swim School Co-ordinator Tracey Sellenger has recently completed her presenter’s certificate and this will enable the Centre to provide courses on a more regular basis or as requirements demand.

Sports Hall The Sports Hall was booked on a regular basis for the following activities or group: • Esperance Tae Kwon Do Academy. • Esperance Toy Library.

30 • Bay of Isles Leisure Centre Group Fitness Classes. • Kinder Gym Classes • Esperance Gymnastics Academy. • Tai Chi Classes. • Yoga Classes.

Crèche Programmes The Crèche has continued to offer patrons of the Leisure Centre the convenience of childcare facilities over the past year, at an affordable rate. Staff are aware of the importance of providing stimulating activities for children while their parents are utilising the Centre, and as such have devised a range of activities that are both enjoyable and educational for children. The Crèche is an integral component of the Leisure Centre, as it enabled patrons to attend other areas of the Leisure Centre with the knowledge that their children were being cared for in a professional and caring environment.

Wet Deck Café Parties – The Wet Deck Café continues to be a favourite venue for children’s birthday parties and junior sporting club end of season wind-ups. The Café averages 2-3 parties each week, with an influx during the holiday periods. Staff have created a range of menus for children’s enjoyment, ranging from traditional party food to healthy options.

Menu – Management and staff are conscious of the need to provide quality service, food and drinks to patrons, and are constantly revising the menu to cater for people’s tastes. A range of fresh foods have been trialled, however patrons seem to be reluctant to purchase fresh, healthy foods, and the Centre was forced to concede that perhaps this was not a viable option.

Training – All staff are Foodsafe accredited and are regularly trained in best practice methods of preparing food and drinks. Of special note is the standard of espresso coffee produced by staff, which has members looking forward to their free Cappuccino on a Sunday morning.

Capital Items Retiling of the Aquatic Area Following an investigation of possible options for the refurbishment of the Aquatic area floors and seating, Council contracted AVP to replace the original floor and seat covering in the Aquatic area with tiles. The extensive research conducted revealed that this option would be the most durable and safest in terms of providing a non-slip surface. The Aquatic Area of the Centre was closed to the public for a period of four weeks, from early July to early August 2004 to allow for the completion of this work.

A number of other maintenance items were also completed during this time and are as follows. 1. Structural steel was prepared and primed before being painted. 2. Rusted steel was removed from underneath the Leisure Pool windows and the area tiled. 3. Rusted sections were removed from the lower sections of all doorframes in the Aquatic area and were repaired using stainless steel. 4. The Centre Supervisor’s desk was removed and replaced with a desk which provided Supervisors with better vision over the pools and Kiosk. 5. The Lifeguard tower was prepared and painted to remove rust and prolong the life of this equipment. 6. All doors, door frames, window frames and skirting boards were painted to match the colour scheme within the Centre. 7. A leak in the pipework leading to one of the showers in the women’s wet area change rooms was repaired. This leak was causing damage to the walls and floor tiles in the men’s change rooms and the cleaner’s storeroom. 8. Tiles were replaced in the men’s wet area change rooms. 9. Ceilings were painted in the men’s and women’s wet area change rooms. 10. The floor and walls of the Lap pool were repaired and painted with 3 coats of pool paint. 11. Lane rope anchor points were installed in the Leisure pool to help define areas set aside for swimming lessons. 12. The fence around the Hydro pool was removed to provide easier access for disabled and elderly patrons and to facilitate the application of pool blankets. 13. Mechanical ventilation was fitted to the disabled change rooms and sensors installed to activate and deactivate these units.

Pool Blankets In an effort to reduce the amount of gas used to heat the pools, Air Handling Units and Aquatic Area showers, a partnership was formed with Burns and Roe Worely and Council to purchase pool blankets. Pool blankets for all pools arrived and were fitted for use on rollers. Staff were provided with work instructions on how to install and uninstall these items each evening and morning respectively. Gas usage dropped by an average 150 litres of gas per day as a result of the blanket being installed and condensation within the Centre has been reduced. This will assist in building maintenance issues and extend the life of the facility.

Whirlaway tile cleaner A Whirlaway tile cleaner and high pressure unit was purchased and a cleaning schedule has been instituted to ensure that the tiles remain in a clean condition. This schedule is a priority of Management and staff are constantly reviewing it to ensure the best possible outcome. Patrons are being educated as to the times that certain areas of the

32 concourse are being cleaned and signage/barriers are erected to restrict access to these areas while cleaning is in progress.

Aqua Inflatable The purchase of the new “Eliminator” aqua inflatable has generated a new interest among children in the area. Aquatic entries on the weekends have risen as a result of this apparatus, and staff has included the Eliminator in a range of holiday activities that draw young people to the Centre during the school holidays.

RECREATION SERVICES - OTHER

Greater Sports Ground Redevelopment Over a period of approximately five (5) years, Council has completed an extensive Master Planning process to review the provision of sporting facilities on the Greater Sports Ground (GSG) to ensure future demands and growth trends over the next twenty (20) year period can be met. An important part of the review involved consultation with a variety of key stakeholders including – the community, Sporting User Groups, the Department of Sport and Recreation, relevant Council staff in addition to the services of Professional Architectural services.

As a result of the review, Council endorsed a 20 Year Master Plan that will provide a framework for future facility development within the GSG area. It is intended to implement the Plan over four stages during the 20 year term of the plan, as outlined below:

Stage 1 (0-5yrs) • Construction of 1st Stage - Esperance Tennis Club (ETC) and Esperance Bowling Club (EBC) co-located facility i.e. ETC component of facility. • Black St road diversion around BOILC to prepare for BOILC - Redevelopment. • Construction of revamped Bay of Isles Leisure Centre, Indoor Sports Stadium and car park.

Stage 2 (5-10yrs) • Demolish Badminton Stadium and develop area as grassed playing fields. • Develop former netball court area as grassed playing fields • Create Synthetic Bowling Green/s (D & C) for EBC • Construction of 2nd Stage Esperance Tennis Club and Esperance Bowling Club collocated facility i.e. EBC component of facility. • Create carparking to accommodate ETC and EBC

33 Stage 3 (10-15yrs) • Relocate Shire of Esperance Depot and redevelop area for extra playing fields on GSG • Begin redevelopment of an alternative Oval to accommodate Ports Football Club • Construct Football Grandstand and Ports Clubrooms at an alternative Oval • Relocate Agricultural Society sheds into South Western corner (may occur earlier if the opportunity arises) • Develop original Agricultural Society area as grassed playing fields

Stage 4 & 5 (15-20yrs) • Demolish Ports Football Club facilities • Construct Multi Sports Pavilion and fully develop outdoor playing fields, playgrounds and car parking throughout GSG. • Demolish the Multi Sports Pavilion

GSG Major Achievements to date (Stage 1) • Successful sourcing of funding and subsequent commencement of Esperance Tennis Club facility (Stage 1 of co-located facility with the Esperance Bowling Club). • Endorsement of the Bay of Isles Leisure Centre Redevelopment concept plan and review of artistic impression. • Development of a draft Bay of Isles Leisure Centre Redevelopment Business Plan 2005/06 and CSRFF funding application to be submitted to the Department of Sport and Recreation in October 2005.

Major CSRFF Projects and Funding Results • Esperance Tennis Club – For the construction of a new clubhouse including changerooms and ablutions. The clubhouse facility has been designed in such a way to allow further additions to be built onto in future years to provide club house facilities for other sporting groups based at the GSG. The total cost of the project was $163,636, with DSR and the Shire of Esperance each contributing $81,818. • Cascades Recreation Association – For the construction of 2 lit synthetic tennis courts, storage facilities and upgrade of oval irrigation pump. The total cost of the project was $208443, with DSR and the Shire of Esperance each contributing $71,833 and the Cascades Recreation Association $64,777. • Multi-sports Pavillion Management Committee – For the installation of Training Lights to their training facilities at the GSG. The total cost of the project was $31,332, with DSR and the Shire of Esperance each contributing $15,666.

Major Playground Redevelopment • Replacement of Level 3 playground equipment at Dixon Park – 1 x Multi Activity Station and 1 x Salvado Shadeshelter. • Improvements to the Grace Darling playground, including ramps, pathways and fencing. • Installation of a seesaw at Gibson Community Playground. • Installment of play structures at Lions Park

“Grace Darling playground improvements - including ramps, pathways and fencing ”.

Support Provided to Esperance District Recreation Association (EDRA) • CSRFF Workshop – joint presentation by the DSR, Shire of Esperance and EDRA • Creation of a sporting database for the timely and cost efficient dissemination of sporting information. • A Members Protection Workshop was held. • Promotion of Funding Opportunities including - Junior Travel Trust Fund, Esperance Sporting Trust, Healthway Scholarships, Healthy Clubs, Club Start-up. • Distribution of a Clubhouse CD to all sporting groups that provided information on how to start a club, run a Club, maintain volunteers and develop club checklists. • Regular Newsletters were circulated to a comprehensive email database of sporting group members throughout the Esperance Region. Funding was secured and the subsequent appointment made of a Strategic Club Development Officer. This creation of this position enabled the following programs to be instigated: Commencement of Smart Club Checklist, the review and updating of club constitutions, an awareness program informing clubs of the correct policies relating to Anti-harassment, Child Protection, Complaints Handling and developing Codes of Conduct.

Esperance Public Library Loans The library has over 24,000 items for loan, comprising fiction, non-fiction and junior books, talking books in cassette or CD, DVD format, videos, CD ROMS, magazines, comic books, jigsaws, stuck in bed bags (for sick children) and music CDs. Also available are daily newspapers, Internet access for emails or research, Inter Library Loans and housebound service.

The library loaned 135,148 items from July 2004 to June 2005.

Resources The library was fortunate to secure $5000 worth of metal shelving from Gosnells Public Library. This enabled the library staff to rearrange the shelving in the fiction and non-fiction areas of the library to create “Bookshop” shelving, designed to make it easier for people to locate everything on a subject at one location. The new 35 arrangement has been very successful, with the majority of borrowers expressing satisfaction with the system.

A magnifying screen was kindly donated to the library to assist vision impaired people to read books, papers and other library literature.

An Early Years’ grant was also obtained to make up Literacy Packs for struggling readers, together with a Story-time Resource Box for pre-school children was put together.

Staff A trainee and part-time library officer commenced employment in September as a result of Council’s allocation of funding for more library staff.

As part of the library’s ongoing commitment to staff training, a staff member, attended the Country Library Officers course at the State Library during 2004/05. Three staff members also commenced a Library Technician Diploma with Central TAFE in Perth, and the Library Manager is working towards a Diploma of Community Services Management with Curtin University’s Esperance Campus.

Building A new Frank Collett Library sign was been placed at the entrance during 2004/05, with maintenance commencing on the entrance and foyer, which involved a repaint and installation of a permanent display cabinet. It is planned to install new carpeting in the main area of the library early in the 2005-06 financial year. Long term plans to replace the library building remain on the agenda, subject to the

availability of funding.

Highlights Seniors Week Two “Scrapbooking Your Memories” workshops were held during Seniors week. The workshops were very popular with three generations of some families taking part.

Freycinet – Our French Collection exhibition. An exhibition of French maps and drawings dating from the voyage of Nicholas Baudin 1800-1804 and that of Louis de Freycinet 1817-1820 was held at the Cannery Art Centre. The exhibition was organised by Patrick Moore from State Library of WA assistance from the Esperance Library Manager.

Cancer Council Morning Tea This event was organised by the Library staff in May 2005 as a fundraiser for charity and also as a promotion for the library. The event drew a very good response from the public and successfully raised over $490 for the appeal.

36 Children’s Activities • School holiday activities were held throughout the year and were well attended. • Summer Holiday program was held in conjunction with Premier’s reading Challenge and in partnership with the Cannery and ending with a sand sculpture competition. • Children’s Book Week. A very successful week of activities to celebrate Children’s Book Week with a special ‘Doorways to Space’ Blast Off one evening, and a sausage sizzle held by RFDS. • Pirate activity held at the Lions Park for Children’s Day (Children’s Week) in the park with a great Pirate boat and stories. • School visit from Mallee Muster, to learn how to use the library. • Club 7-11. This is an after school reading group for 7 – 11 year olds. • The Library hosted the ‘Nestle Write Around Australia’ Competition for the south west region. This is a competition for Year 6 and 7 students to write a story. • Toddler time started this year with mums and toddlers coming in to the library for stories, singing and activities. • Stuck In Bed Bags were introduced for children to utilize while sick at home. • Born To Read has continued this year in conjunction with Speech Department at hospital and Community Health. • Read And Play Time (Speech Department at the hospital) was held at the library on Wednesday mornings.

Community Events National Tree Day The 2004 National Tree day was held at the Nulsen Community Garden with many volunteers braving the rain to plant trees. Numerous varieties of trees were also made available for people to collect and take home to plant in their own garden.

The Esperance tree planting site was visited by Senator Dee Margets, who assisted with the planting and mingled with the volunteers and organisers.

A BBQ lunch was arranged to thank the many volunteers who helped on the day.

Cr Stewart doing her bit for Local resident choosing National Tree Day her trees to take home

37 Esperance Tidy Towns The Esperance Tidy Towns submission was complied and sent into the Department of Environment for judging. Esperance was also visited by a representative from the Department of Environment for specific site visits enabling them to comment and judge accordingly.

The Tidy Towns awards acknowledge and reward communities and recognises community projects that enhance and look after the communities assets and surrounding environment. Traditionally, the program focused on tidy streets, litter prevention and beautification. Whilst these elements remain important, today being “tidy” means so much more.

Communities investigate and conserve assets as their cultural heritage, bushland and rivers and limit their impact on the environment through recycling and resource recovery.

The judging criteria covers various initiatives such as Community Action, General Appearance, Waste and Recycling Management, Natural Heritage Conservation, Cultural Heritage Conservation and Fresh Water Conservation.

Esperance was a regional finalist and received awards for two initiatives – Natural Heritage and Recycling & Waste Management.

Salmon Gums Show The Shire of Esperance attended the Salmon Gums show and had a small display promoting the Community Recycling programme and Volunteering whilst also providing various sorts of information relating to Shire projects and up and coming events.

National Children’s Week In conjunction with the Office for Children and Youth we ran a week of activities for children during National Children’s Week. Activities included a Fun Family Day at Adventureland park (storytelling, painting, music playing, clowns, balloons, fire engines and police cars, train rides, bubble making); Scitech Science shows; School visits by a West Coast Eagle (encouraging students to become active and promoting no drugs in sport); and a Wandering in the Bush Show.

SciTech Road Show

Children Painting at the Family Fun Day 38 Esperance Agricultural Show There was a hive of activity at the Shire of Esperance display stand as people judged the photos for the 2004 Community Calendar and the young ones entered the Shire Ranger colouring in competition, patrons “Guessed the weight of the Bale” and the Senior Citizens launched their new book “Esperance Seniors Reminiscence”. Various other items were also on display including the new Ward Boundaries, the Men in Sheds projects, Esperance Public Library information, the Festival of the Wind promotion, Esperance Volunteering material and Roadwise promotion. Willy Wastenot also attended the show and did the rounds of the showgrounds promoting recycling.

Sports Star of the Year Awards The 2004 Sports Star of the Year Awards were again held by the Esperance District Recreation Association in conjunction with the Department of Sport and Recreation, Bay of Isles Leisure Centre and the Shire of Esperance. It was a prestigious night attended by two guest speakers, Katrina Powell, Captain of the Olympic team Hockeyroos and Glen Jakovich, West Coast Eagles football legend. The Esperance Express Rising star was jointly won by Chad Sellenger and Brodie Lance, the Department of Finalists for the Shire of Esperance Sport and Recreation Veteran Sports Star of the Sports Star of the Year Year was won by Kathleen Donavan and the Shire of Esperance Sports Star of the Year was won by Jody Brownley.

Pool Party The Youth Advisory Council, together with the Bay of Isles Leisure Center held a pool party for the young people of Esperance. Activities included a Boat Race, Bombie Competition, The Eliminator, Funnel Face, Wet Jumper relay, Coin Toss, Noodle Race, Shotgun Shave and Spud Hunt. Local youth band Attit2d played out some tunes during the events to entertain the crowd. A door prize was drawn and lots of other prizes handed out to winners of each event.

International Day for People with a Disability A luncheon was held at the Civic Centre to celebrate International Day for People with a Disability. The event was a huge success with over 100 people attending. Attendees were treated to the thoughts and experiences of 3 guest speakers, Helen Errington, who works for the Department of Education and Training in the Access branch, Mallika McLeod, who works for the Australian Council for Rehabilitation of the Disabled and is a member of the Disability Services Commission and Senses Foundation and Barry Cable, an Aussie Rules Football Legend who now leads a not-for-profit organisation called the Community Development Foundation, L-R Herb & Avis Montgomerie 39 meet Barry Cable, Mallika McLeod and Helen Errington which works to develop leadership and self-determination within communities.

The organising committee comprised of representatives from Employment Esperance, Shire of Esperance, Centrelink, Carer Respite and the Red Cross, as well as input from a local man living with a disability.

Community Christmas Pageant The 2004 Community Christmas Pageant was branded a huge success with 28 registrations including various floats, walking groups and animal’s taking part in the procession. The Christmas pageant attracted thousands of spectators throughout the CBD route.

The crowd was entertained with festive tunes by the Esperance Brass Band prior to the pageant and then by local youth band Attit2d after the pageant.

Ellen Saltmarsh from the Esperance Scooter Group gets Seniors Christmas Dinner into the festive spirit The Shire of Esperance Senior’s Christmas dinner attracted over 300 patrons who enjoyed a 3 course meal and various types of entertainment. The programme included carols, piano and vocal duet, dancers, choir singing, recorder medley and skits from the Seniors Variety Concert. The cutting of the cake was conducted by the eldest male and eldest female attendees, which were Lyle Shipard and Win Win Juggins and Lyle Shipard Juggins. cutting the Christmas Cake at the Seniors Christmas Dinner Surfing Clinic and Competition The Esperance Youth Advisory Council and the Shire of Esperance sponsored a surfing clinic and competition, which was run in conjunction with the Esperance Community College and the Esperance Surfing Academy. The clinic was well received with a total of 32 people registering. The competition took place at Fourth Beach were there were approx 20 competitors entered in various categories. Categories included: 17 and under Open Board riding - Male 17 and under Open Board riding - Female 15 and under Board riding – Male 15 and under Board riding – Female 17 and under Body board – Male 17 and under Body board – Female 15 and under Body board – Male 15 and under Body board – Female 13-17 yrs Soft board (mixed) Under 13 yrs Soft board (mixed) 40 Prizes were awarded for each category and a BBQ lunch for competitors and spectators finished off the day.

Youth Spaces Tour A study tour of various operational youth spaces throughout Perth and the South West was conducted to enable potential stakeholders and a number of young people to see first hand how a youth space could be set up and operated. Youth spaces that were visited included Waneroo (Clarkson Centre), Leederville (Headquarters), Mandurah (Billy Dower Youth Centre), Margaret River (The Zone) and Australind (The Escape). Observations of each centre was then collated to enable stakeholders and young people to review and discuss the potential of Esperance having its own youth space. This project is ongoing.

Festival of the Wind The Shire of Esperance was a major sponsor of the 2005 Festival of the Wind. The Festival attracted thousands of patrons who enjoyed the Foreshore Fun, Chess, Bungee Run, Dance Expo, Rave, World Food Market and the closing ceremony. The Festival had major support by the local community and local businesses and was rated a huge success throughout the entire community.

It’s a Knockout Games Day The senior’s It’s a Knockout Games Day was held at the Bay of Isles Leisure Centre in conjunction with the Shire of Esperance, the Seniors Recreational Council and Home and Community Care. 10 teams registered and enjoyed a morning full of action, followed by a hearty lunch and cake! Activities included Bean Bag Basketball, Coin Toss, Scooter T-Ball, Croquet, Written Quiz, Tunnel Ball, Leader Ball, Walking Race and a Novelty Event. One of the participat ing teams with their prize

Community Development Fund The Community Development Fund is funding allocated by Council for community and sporting groups. Between late February and the end of April of each year local community groups are encouraged to apply for funding through the application process.

In addition to the detail provided in the written submissions for funding, Council also gave representatives of the various community organizations an opportunity to argue their case before a CDF Special Council Meeting. All applications were considered and grants allocated were determined at the conclusion of the submissions.

Funding amounting to $300,000 was allocated to sporting and community groups to assist with the development of facilities and services. A similar process for allocating CDF funding is planned for next financial year.

41 The following is a sample of grants made for the 2004-05 financial year: • Esperance Showbizz - $4,500 • Esperance YouthCare - $5,000 • Esperance Brass Band - $4,000 • Festival of the Wind Committee - $10,000 • Esperance Community Arts - $12,000 • Salmon Gums Development Group - $5,000 • Esperance Theatre Guild - $9,000 • Scaddan Pioneer Park Committee - $5,000 • Esperance Goldfields Surf Lifesaving Club - $5,000 • Toowacka Campsite Committee - $8,500

Community Arts and Activity Fund Community groups and not-for profit organisations are invited to apply for ad-hoc funding throughout the year for activities conducted over the school holidays. This allocation of funds will be available during 2004-05 financial year.

During 2004-2005, financial assistance via this fund was provided to: • The Esperance Community College • Esperance Community Arts • Cannery Art Centre

Seniors Esperance Senior Citizens Centre As at December 2004 the Esperance Senior Citizens Centre had 237 financial members with a further 25 new members joining during 2005.

The Management Committee, with financial assistance from the Shire and a successful grant from the Community Development Fund has continued with of improvements and upgrades to the Centre, including: • Installation of curtains and blinds in all rooms • Purchase of new office equipment • Purchase of a TV & DVD player, Stereo system and associated furniture • Re-upholstering of Lounge chairs • Purchase of a double door display fridge and commercial dishwasher • The Centre will soon be fitted with reverse cycle air conditioning.

14 groups operate within the centre with several groups having more than one session per week. One new group commenced at the Centre this year with another about to join. The centre will also soon be offering an online service for seniors to learn and access the internet and email services.

42 Wednesday Lunches - the ladies have served on average 35-40 meals per week this year. With the high average number of meals served it wasn’t necessary to close the kitchen during the winter months.

The Senior Citizens Centre group activity highlights for this year were • The 2004 Melbourne cup Luncheon • Taking part in the Christmas Pageant • It’s a Knockout Seniors Games • Monthly quiz afternoons • Seniors Holiday Break to Mt Barker and Albany 97 year old Win Juggins and friends crossing the Valley of the Giants • Seniors Week Open Day Luncheon and whilst on holiday in Denmark /Mt Sing-a-long Barker • Seniors Art and Craft Exhibition

The Senior Citizens Management Committee is currently raffling an Electric Scooter as part of its ongoing fundraising project.

Home and Community Care Esperance Home Care During 2004-05 the Esperance Home Care continued to follow its mandate to provide a range of basic support services to frail older persons, younger people with disabilities and the Carers of these two groups within the Shire of Esperance.

Annually, the provision of basic services has grown to meet the ever growing demand of the target group within the Esperance Shire. Esperance Home Care has provided in excess of 5000 hours of service per month to more than 290 individuals and 80 Carers. Domestic assistance, gardening and respite are the services most requested, other services provided include Meals on Wheels, personal care, shopping, transport, assistance with appointments, bill paying, banking, social support and laundry. These services and 11 social support programmes are delivered and administered by a team of 34 full/part-time staff and a team of 145 Volunteers.

New Outdoor Room The construction of the facility’s new outdoor room is almost completed with the new room now at lock-up stage. Internal furnishing will be arranged early in the 2005-06 financial year.

43 Adult Respite Centre The Adult Respite Centre continues to be the Shire’s main venue for providing respite services on a regular basis, for up to 6 hours a day, 5 days a week. The Centre currently provides 61 clients with social and emotional support through a range of appropriate activities and outings.

In March this year the Shire took possession of a new wheelchair accessible Rosa bus, providing the capacity to transport 20 clients at one time.

Men in Sheds The Coordinator of this programme with several clients and volunteers attended the Wood Show in Perth in August 2004.

Community awareness of this programme was heightened by a stall held at the Australia Day Celebrations. A four day “Trip Down South” - held in March, was very successful with the men enjoying the opportunity to observe craft ideas on sale in other areas.

Women in Sheds This programme has commenced with 4 ladies attending the first session. Group numbers continue to grow each week.

Meals on Wheels Service The Meals on wheels service provides 200 meals per week in meeting the needs of both people within the community and those who attend the Adult Respite Centre. This service is provided by two Meal Supervisors with support from 8 dedicated Volunteers.

Corporate business became involved with the Meals on Wheels service this year when 5 staff members of the National Bank commenced delivering meals.

Fundraising Fundraising continues to be an important means for the Shire to support the development of its service. Once again staff, volunteers, our clients, Carers and family members have continued to support fundraising efforts, which enabled Esperance Home Care to raise $5,000.00. Events included a BBQ at the Festival of the Wind, catering for the Esperance Agriculture Show, a street stall at Dewson’s and numerous raffles. Funds are currently being directed towards the development of a Sensory Garden at the Adult Respite Centre which can be enjoyed by all clientele.

Wongutha CAPS School A joint Community initiative between Wongutha Caps and Esperance Home Care to provide additional gardening services for the clients of Esperance Home Care is being trialled during the 2005 school year.

44 Community Nursing Service The Community Nursing Services commenced in March 2005, with the service providing maintenance only type support for clients and an advisory service for staff, carers and clients where appropriate. National Respite For Carers Programme Esperance Home Care has been successful in renewing its funding contract with the Commonwealth Department of Health and Ageing for 3 years at $100,000 per annum. This will enable the Shire to increase its services and support to Carers in the area over the next 3 years.

Volunteer Management Programme Volunteer Resource Centre The Esperance Volunteer Resource Centre continued to work within the community to support volunteering and connect groups and individuals. To meet these aims the funding from both state and federal governments, the Western Australian Government Department of Community Development, Volunteering Secretariat and the Australian Government Department of Family and Community Services respectively, and Volunteering Australia has been essential. Funding has also been obtained from the Lottery West through Volunteering Western Australia for the support of National Volunteer Week activities and from the Department of Community Development Volunteering Secretariat for "Thank a Volunteer Day" celebrations.

As part of the aims of supporting people to volunteer, Esperance Volunteer Resource Centre referred 206 volunteers to community groups and volunteering opportunities. Fifty nine of these volunteers have chosen to remain on the “Skills Register” or “Skills Bank” project, which provides a pool of people with differing skills willing to be contacted about short-term volunteering opportunities.

The volunteers were referred to a variety of community organisations and projects, ranging from Esperance Home Care to the Department of Fisheries and the Festival of the Wind.

In meeting its aim to provide education and training to volunteers and organisations to enhance skills and provide information on volunteering and involving volunteers (volunteer management), the Volunteer Resource Centre completed 57 sessions. This equates to 86 hours of training, with 331 people attending the training sessions. The training and information sessions ranged from providing opportunities for volunteers to update skills in “Basic Fire Training” and “safe food handling” to assisting community organisations with information on “meeting formats”, “managing staff performance” and "managing for 'succession" The majority of training sessions were based on the locally made video “Bridging the Gap” which is offered to people looking at volunteering. The training sessions endeavour to facilitate discussion about opportunities that are available, as well as assisting potential volunteers in making a decision about what may best suit them when volunteering. It includes such considerations as looking at times available, reasons for volunteering, such as making new friends, and any restrictions that they may have which could impact on their ability to volunteer in certain areas.

Another focus of the Volunteer Resource Centre during 2004-05 was to provide community groups with information and resources to assist them in building their

45 services to the community. The Esperance Volunteer Resource Centre provided services on 249 occasions, encompassing the following activities: • Provision of resources and information from Government agencies; • Provision of information on volunteer insurance and governance; • Providing assistance and guidance with respect to Volunteer Management Program issues - policy development, volunteer involvement including application, interviewing and screening; recruitment and recognition of volunteers; • Assisting organizations such as the Department of Consumer and Employment Protection with their training sessions and distribution of associated information; • Loaning resources to community groups such as display boards, the video/TV, the portable BBQ; • Assisting organizations such as Read Write Now! by providing access to office and meeting room facilities at the Volunteer Resource Centre office for interviews; and • Providing assistance to community groups to identifying grants and sources of funding.

Esperance Volunteer Resource Centre became a foundation member of the Volunteer Resource Centre Alliance WA, which is a network of volunteer resource centres around the state. The Network has evolved from an increasing need for a coordinated approach to the delivery of volunteer referral and resource services throughout Western Australia. This network provides future opportunities for support and facilitates through the capacity to share of information and resources across the state, as well as developing services to meet the needs of people who are travelling and want to volunteer in short term projects around the state. This fits with the aims of Volunteering Australia’s network which is the national network of volunteer centres. Esperance Volunteer Resource Centre has input into both these networks, providing the capacity to shape future service delivery, advocate on behalf of local community groups in the areas of insurance and government policy and strengthen the fabric of volunteering across the nation.

The Esperance Volunteer Resource Centre was involved in projects in partnership with the community organizations on the following projects in order to promote volunteering in the community: • Esperance Christmas Pageant; • Αn  Ιntergenerational project with the Community Health Promotions team; • Mental health awareness with Bay of Isles Community Outreach; • Emergency Services Day; and • Festival of the Wind.

Projects were also undertaken to involve youth as volunteers, both as individuals as well as collectively through working with local schools, especially the Education Support Centre at Esperance High School.

46 Major Events The major events involving the Esperance Volunteer Resource Centre included: • International Volunteer Day (5 December 2004) which is known as "Thank a Volunteer Day" in WA –Family fun day, which was held at Adventureland Park; • National Volunteer Week – Volunteer breakfast with guest speaker Megan Paul; Bus trip for volunteers to meet and discuss volunteer issues in Hopetoun.

Development Services

REGULATORY CONTROL & Development Services Team Profile SUPERVISION EXECUTIVE MANAGER DE VELOPMENT SERVICES LAND USE PLANNING HUMAN RESOURCE MANAGEMENT INFRASTRUCTURE PLANNING & MAINTENANCE MR RICHARD BROOKES SUPERVISION PROCEDURES & POLICY DELIVERANCE

HEALTH SERVICES PLANNIN G SERVICES ENVIRONMENTAL SERVICES BUILDING SERVICES ADMINISTRATION & HUMAN RESOURCES SERVICES • STRATEGIC LAND USE HEALTH PLANNING & LOCAL PLANNING (FUTURE) GOVERNMENT ACT • BUILDING REGULATIONS & BCA • REQUIREMENTS OVERSEEING REGULATIONS • ASSET MANAGEMENT & • • MOSQUITO CONTROL ENVIRONMENTAL PLANNING STAFF TRAINING & DEVELOPMENT PLANNING PLANNING • SEPTIC TANK INSPECTIONS COMMUNITY CONSULTATION REPORT WRITING • SUBDIVISIONS • BUILDING CONSTRUCTION HEALTH COMPLIANCE, COAST CARE • LIAISION WITH OTHER COUNCILS AMALGAMATION CONTROL LANDCARE (SALINITY) • PROJECT MANAGEMENT • • APPEALS SHOP INSPECTIONS CUSTOMER SERVICE EXTERNAL LIAISON WITH GOVT DEPTS (COUNCIL FACILITIES) • COMMUNITY CONSULTATION & • TOWN PLANNING SCHEME WASTE MANAGEMENT • REGULATIONS/ LICENSING NOISE & EMMISSION MONITORING BUILDING APPROVAL ADVICE REVIEW/ COMPLIANCE WETLAND MANAGEMENT • SITE INSPECTIONS • • INFECTIOUS DISEASES & AGENDA PREPARATION EXTERNAL LIASION ADVISORY COMMITTEES • FENCING APPROVALS • GRANTS DEPARTMENTS PUBLIC SAFETY ENGINEERING & DEVELOPMENT WATER TESTING NREAC • COUNCIL BUILDINGS SERVICES • CBD PLANNING MEAT INSPECTION SERVICE LAKE MONJINGUP MANAGEMENT PROGRAMMES DEVELOPMENT APPROVAL • EXTERNAL PROFESSIONAL EDUCATION & PROMOTION • SIGN LICENSING PROCESS SERVICES EXTERNAL PROFESSIONAL • EXTERNAL PROFESSIONAL SERVICES SERVICES NOISE • ADVISORY COMMITTEES NATIONAL TRUST COMMUNITY HERITAGE Development Services Team Richard Brookes, Ellen Gude, Matthew Grey, Paul Garbett, Patrick McClure. Joel Gajic, Marisa Millward, Sonia Commisso, Chantal Spittle, Paul Clifton, Allan Gilpen, Brendan Dowell, Robert Suter, Les Crake, Amber Sharpe.

48 Town Planning Scheme Review & Local Planning Strategy The Council continued to commit significant resources to the Town Planning Scheme Review and the Local Planning Strategy in conjunction with the Department for Planning and Infrastructure. Council considered the draft Local Planning Strategy in several workshop sessions. The new Scheme based on the Model Scheme text is progressing concurrently with the limited planning strategy and it is anticipated that they will be advertised together. Considerable efforts have gone into finalising outstanding amendments to the existing Town Planning Scheme No. 22 to assist with administration in the interim.

Flinders The auction of the 33 lot Stage 1 of the Flinders Estate was very successful

Further plans exist to expand on the number of lots in this new suburb and the Council is in the process of preparing an Outline Development Plan.

The Council is currently is continuing negotiations with the Department of Planning and Infrastructure and private land holders, with a view to confirming an arrangement and plans to develop the land - out to Bandy Creek – for residential and tourist/ commercial purposes.

A decision on these proposals, once the negotiations for the development land have been concluded, should be made in the coming financial year.

Development Application Approvals

Applications Applications

Received Determined Jul 2004 34 26 Aug 2004 30 30 Sep 2004 25 23 Oct 2004 31 11 Nov 2004 40 30 Dec 2004 24 42 Jan 2005 27 27 Feb 2005 27 33 Mar 2005 27 18 Apr 2005 39 29 May 2005 44 31 Jun 2005 37 34 TOTAL 385 334

49 Water/ Sewerage The Council has continued to work closely with the Water Corporation in respect of reticulating water/sewerage around the town. Much work was done in Castletown, to place the sewerage utility underground however state funding has been reduced and further in fill has been delayed.

The recycled effluent water scheme continues to be a cost effective method of watering Council’s vast areas of grassed reserves.

Gas As part of the agreement – for BRW to supply gas and electricity to the Esperance region – BRW contracted with the Shire of Esperance to provide gas (free of charge) to the Bay of Isles Leisure Centre for a period of 18 years. A gas-fired boiler was installed and operates to heat the pool as well as provide general hot water for showers and the like.

BRW began providing low-pressure gas to consumers in the central town precinct of Esperance early in 2005, to supply the heating needs of residential, commercial and industrial consumers.

Building Maintenance The Council is in the fourth year of its building maintenance programme. The programme is funded from the Council’s budget for the maintenance and preservation of its building infrastructure assets. The Council allocated $445,020 in the 2004-05 financial year for building asset maintenance.

Building Activity In the 2004-2005 fiscal year, building industry within the Shire of Esperance was moderately strong; however, the total value of approvals issued was significantly stronger than for the corresponding period last year.

Residential developments accounted for the majority of building work (as depicted in the chart below), with new residential dwelling approvals accounting for 47% of the total building activity. In total, 70 new dwelling units were approved; slightly down on the previous year.

In total, 305 building licenses were issued by the Shire of Esperance, worth approximately $21.79 million in the 2004-2005 financial year.

Breakdown of Building Approvals by Value: Year

04/05

Alter to Churches, 0.17% Sundry Buildings, Flats/holiday, 9.08% 1.05% Garages & Outblds Public Buildings, Alterations/Adds, 1.17% 0.12% Garages & Outblds, 2.53% Business Alterations/Adds, 1.22% Industrial Alterations/Adds, Industrial, 14.60% Dwellings, 63.20% 0.36% Dwellings Alterations/Add 6.51%

Community Heritage Committee The Shire of Esperance continued to work with the Esperance Community Heritage Committee. In its second year of operating the committee has undertaken some major projects and accomplished the following:

• Commission works to be carried out on the Israelite Telegraph Station, and Moir Homestead (east of Stokes Inlet); • Carried out stabilisation and partial restoration of the principal buildings at the Israelite Telegraph Station and Moir Homestead, and supervising the work being carried out on site; • Mr Vince O’Brien was contracted to restore and stabilise the usable stonework of the buildings; • the Shire of Esperance negotiated a Joint Management Agreement with the National Trust to manage the two heritage sites; and • Continued planning for the development of a Heritage Trails document to detail and mark school sites that once existed in townships between Norseman and Esperance.

Vince O’Brien on site at Israelite Telegraph Station. Israelite Telegraph Station

Moir Homestead.

Health and Environmental Services There has been an inability to attract Environmental Health Officers to the Shire of Esperance however during the year the part-time environmental health officers – Amber Sharpe, Paul Clifton and Chantal Spittle have endeavoured to maintain all inspection programmes and other field duties despite the limited numbers of officers available.

A free Food Safe workshops was organised by the Shire of Esperance and the Volunteer Resource Centre - for community groups that intend to run community food (fundraising) events. The workshop was well attended. The Council intends to hold similar activities in October 2005 so that community groups can again acquire the requisite food safety knowledge and skills needed to conduct food-based fundraising events.

Community groups that intend to run food (fundraising) events can also borrow from the Shire an educational video that addresses the issues of food risks and safety.

In 2005 there was a rise in the number of (notified) Ross River Virus cases in the district. Similar trends were noted in most areas of the South West of Western Australia. A practical workshop on mosquito control was held during the year. A Council Environmental Health Officer and staff from Parks and Gardens attended. The workshop examined the factors that can give rise to increased numbers of mosquitos being present, the steps that can be taken to limit the chances for mosquitoes to breed and precautions – to avoid being bitten. The Shire of Esperance implemented a programme of publishing a range of media releases (to alert the public of potential hazards), erecting signs in BBQ areas and displaying signs in public areas to warn the public of potential mosquito hazards and precautions that could be taken to avoid being bitten.

Food Standards Code The Food Standards Code requires all food manufacturers and importers of food to comply with the labelling requirements. As a result, inspections continue to be made to ensure compliance.

In addition, orders were issued to a number of commercial kitchens to be upgraded, where they were not complying with the Code or were otherwise in breach of the health requirements.

52 There was one major incident of food poisoning, which resulted in a number of people being hospitalised. Although the matter was investigated, no conclusive finding was made as to the source of the contamination.

DrumMuster The Shire continued its involvement with the DrumMuster programme last year, as part of its commitment to reduce the amount of waste going into landfill. The programme collects appropriately rinsed empty pesticide containers for recycling into a wide variety of products. The Council only ran the collection at the Wyllie Bay site last year; however, it now encourages any community groups interested in organising collections to make use of the other sites at Cascades, Grass Patch or Condingup by contacting the Council’s Health Department. The collections can be a fundraising activity as money for the collections is provided by the DrumMuster programme.

Natural Resource & Environment Advisory Committee The activities of the Committee came to a close during the year with a number of projects such as cat control and 4 wheel drive access to public area and beaches unresolved

53 Engineering Services

Engineering Services Team Profile INFRASTRUCTURE MANAGEMENT EXECUTIVE MANAGER EN GINEERING SERVICES OPERATIONAL MANAGEMENT ADMINISTRATION HUMAN RESOURCE MANAGEMENT SUPERIVISION MR DOUG PEARSON ENGINEERING ADVICE

ASSET MANAGEMENT HUMAN RESOURCE MANAGEMENT ASSET PLANNING SERVICES TECHNICAL & ADMINISTRATION SUPPORT

MAINTENANCE & CONSTRUCTION PROGRAMMES – RURAL/ TOWNSITE OUTSIDE WORKFORCE FORWARD WORKS PROGRAMMING ENGINEERING ADMINISTRATION PLANT & EQUIPMENT REPLACEMENT ENGINEERING STAFF SUBDIVISIONAL WORKS & MAPPING, SURVEYING & DESIGNING PROGRAMMES RECRUITMENT, TRAINING & DEVELOPMENT PLANNING CUSTOMER SERVICE DEVELOPMENT AND MAINTENANCE OF EQUAL OPPORTUNITY ASSET REPLACEMENT OFFICE ADMINISTRATION STREETS, ROADS, BRIDGES, CULVERTS COUNSELLING & LEADERSHIP DEVELOPMENT PROGRAMMING BUDGETTING & ESTIMATING PARKS, RECREATIONS AREAS OCCUPATIONAL SAFETY & HEALTH COMMUNITY CONSULTATION QUALITY ASSURANCE DRAINS AND OTHER INFRASTRUCTURE SUPERVISING MANAGEMENT & COORDINATION ENVIRONMENTAL ASSESSMENT AGENDA PREPARATION FORESHORE, BEACHES & JETTIES TRAFFIC MANAGEMENT & ENGINEERING & DEVELOPMENT AERODROMES PLANNING SERVICES CEMETERIES ROAD FUNDING & OTHER ADVISORY COMMITTEES WYLIE BAY RECYCLING AND WASTE PROGRAMMES CEMETERY MANAGEMENT FACILITY DEVELOPMENT CONTROL ROADWISE PRIVATE WORKS – CONSTRUCTION PRIVATE WORKS - DESIGN REGIONAL ROADS GROUP FORESHORE MANAGEMENT COMMITTEE

Engineering Services Team Doug Pearson, David Spencer, Deb Bell, Peter Cull, Graham Dellaca, Ian Downie, James Gattera, Mark Haberecht, Alisynne Heinrich, Bill Lance, Garry Larmour, Andrew Murray, Mary Parker, Craig Shearer, Bruce, Warren, Neil Williams, Victoria Young, Field Staff Personnel, Recycling Promotions Officer .

54 Road Asset & Expenditure Roads are at the heart of Esperance’s economic and social integration, for Australians living and working on the land or living in outlying towns and travelling to and from work, our regional road network is vital for the supply of materials, equipment, and labour essential for the development and economic wellbeing of the community.

Through numerous mechanisms, investments in the roads sector benefit the whole society by providing access to regional areas and allowing social interaction to take place. In 2004-2005 the Shire of Esperance expended $5,385,896 on roads representing 74% its own resources. This investment in the road network creates and stimulates positive synergy and enhances social cohesion and integration by giving citizens access to the same opportunities.

Shire of Esperance Expenditure on Roads (excluding grant funding) Source: Shire of Esperance

Actual 2004-05

Rates $7,230,645

Nett Road Maintenance $2,361,004 as a percentage of rates 33%

Nett Road Construction $3,024,892 as a percentage of rates 42%

Nett Total Roadworks $5,385,896

as a percentage of rates 74%

Roads to Recovery The Shire of Esperance received an allocation of $4,675,435 over a five-year period of this $1,498,822 was for the 2004-05 financial year these funds were allocated to road works on the basis of approximately 75% to rural roads and 25% to urban roads. The initial Roads to Recovery funding program ended on June 30, 2005 and Roads to Recovery 2 funding program started July 1, 2005 it is anticipated the Shire of Esperance will be allocated $4,702,284 over the next four years.

Roads to Recovery 2 Anticipated Grants To be received by Shire of Esperance

Year $

2005-06 1,175,571

2006-07 1,175,571

2007-08 1,175,571

2008-09 1,175,571

TOTAL 4,702,284

55 Grigg Road This is one of the major projects to be undertaken using funds from the Roads to Recovery programme. Grigg Road is a Rural Distributor Road – Category B (less than 55 traffic movements per day) which serves as strategic grain haulage route bringing in grain connecting cropping farms to the Coolgardie - Esperance Highway. The road was upgraded and widened to a 7.4 metre seal over sections that were narrow 4 metre bitumen seal. In its existing condition the road was not coping with heavy traffic and was a safety hazard.

Myrup Road Roads to Recovery Funding of $184,800 were spent in the 2004/05 financial year for the upgrade Myrup Road. Funding was very timely in allowing for essential works to be undertaken on this heavy haulage route for grain transfer.

Myrup Road is a Rural Distributor Road – Category B which serves as strategic grain haulage route bringing in grain connecting cropping farms from the east of the Shire to the CBH site at the new Shark Lake Industrial Park. Sections of the road was upgraded and widened to a 7.4 metre seal over a narrow and badly failing bitumen seal.

Regional Road Funds Council was again successful at securing funds from the State Government for important regional roads within the Shire. The grant of approximately $848,567 this represents 75% of the $1,131,423 expended during 2004-05 for important ongoing reconstruction and upgrading works on Cascade and Fisheries Roads.

Private Contracts Works of this nature are undertaken when they will not conflict with and can be easily added to Council’s annual works programme, which ensures optimum utilisation of Councils plant and equipment.

The Shire was successful in securing a number of private contracts during the year, which included re-instatements for service authorities, subdivisional works for private developers and intersections improvements for Main Roads WA and MacMahon Contractors Pty Ltd. These works provide the capacity for the profits to be invested into other areas requiring expenditure by Council.

56 Foreshore Renourishment The foreshore renourishment programme provides protection to areas of the foreshore that are prone to damage from wave and storm action. Approximately $91,000 was spent on foreshore renourishment during the year, with the Department for Planning and Infrastructure contributing approximately $45,000 towards this, and previous renourishment work.

Council is working with the Port Authority and the Department for Planning and Infrastructure to develop a long-term strategy to address the issue of foreshore erosion along the town’s major beaches. Council has developed a master plan for the Esperance Foreshore which includes treatment options for the erosion problem; this plan is currently being submitted for public comment.

Town Works A number of footpath, road and drainage projects were undertaken within the Town Ward during the year.

Footpath works at Westmacott, Walmsley and Brockman Streets were undertaken as well as a path from the Primary School Bus Bay to the new sporting oval in Walker Street. The programme of improving the streetscape in the CBD was also continued, with new footpaths being installed in Dempster and William Streets. Nulson Urban Renewal Program Dual use pathway Council and the Department of Housing and Works commenced a Pilot Urban Renewal Program in Olympian Way, Nulsen. As part of this program footpath and crossover works

were completed to add to the amenity of the area.

Significant drainage projects were undertaken in Dempster Street between James and Hicks Streets. In addition, continued upgrades of Council’s stormwater drainage system in accordance with the Drainage Master Plan are helping to minimise flooding in the

townsite.

As well as a number of traffic safety projects Council completed the reconstruction and bituminisation of Fill Road and commence reconstruction and bituminisation of a section of Connolly Street, in accordance with Council’s commitment to seal all roads within the townsite.

Esperance Cemetery Council has continued to implement the Cemetery Master Plan by carrying out further works at the cemetery. During the 2004-05 financial year Council contributed $10,000 toward the construction of a gazebo, which was undertaken by the Esperance Rotary Club In addition, the front fence and gate to the Cemetery were also replaced by Council. New Fen cing at Esperance 57 Coastal Trails and Beach Access During the 2004-05 financial year significant works were undertaken along Twilight Beach and the Great Ocean Drive.

Council funded and constructed over 65 lineal metres of timber steps, rails, platforms and ramps to provide safe and sustainable access to the coastal lookout at Observatory Point and extended the Great Ocean Drive Trail from Fourth Beach toward Twilight Beach by 600meters.

The Shire of Esperance and LEAF prepared a joint submission to the Department for Planning and Infrastructure for funding to construct safe pedestrian access to the popular West Beach. The submission secured a Coastwest grant of $20,250, representing 46% of the total project cost. The project included design and construction consisted of a wheelchair ramp from the upper car park to a dual use pathway, 100 lineal metres of timber steps, rails and platforms leading from the car park to the beach.

Other Projects West Beach Steps Other works undertaken by Engineering Services during the year include: • Completion of the construction and reticulation of the new West Beach oval at Walker Street

• The blackspot project involving the construction of a right turn lane into Brazier Street from Dempster Street

• Construction of Rural Road intersection staggers at Neds Corner/Mills Road, Griffith/Belgian/Speddingup Roads, and Coolinup/Lane Roads.

Community Recycling Programme The following graph depicts the recycling trend over the past year. Recycling rates are steady and a recent random survey indicates that approximately 70% of households place their recycling bins out for collection every fortnight.

Education programmes continued during the year, although they were less frequent due to the successful Bag Smart campaign utilising much of the promotional resources.

58 Shire of Esperance Recycled Weights 04/05

120 100%

90% 104 100 96 80%

86 84 70% 81 83 80 78 74 75 74 71 71 72 60% 69 67 6567 66 65 62 63 60 5960 59 50%

Tonnes 40% 40 30%

20% 20

14% 10% 13% 13% 14% 14% 14% 13% 13% 13% 13% 13% 12%

0 0% Jul-04 Oct-04 Apr-05 Jan-05 Mar-05 Jun-05 Aug-04 Nov-04 Feb-05 May-05 Sep-04 Dec-04 Total Total Moving Average Contamination Weight Recycled Average Average prices received for recycled materials are as follows:

% of Value/tonn % of Materials Tonnes Total Value total e Revenue weight Cardboard 251 $ 80.00 $20080.00 31% 24% Mixed Paper 168 $ 50.00 $8400.00 21% 10% News Paper 194 $ 125.00 $24250.00 24% 28% Glass 133 $ 60.00 $7980.00 16% 9% PET Plastic 11 $ 300.00 $3300.00 1% 4% HDPE Plastic 13 $ 400.00 $5200.00 2% 6% Tins 12 $ 45.00 $540.00 1% 1% Ali Cans 13 $1,050.00 $13,650.00 2% 16% Office Paper 6 $ 125.00 $750.00 1% 1% Plastic Bags 9 $ 120.00 $1080.00 1% 1% Totals 810 $85,230.00 100% 100%

As detailed in the above schedule, the average revenue per tonne of recycled material processed was $105 .

Commercial Recycling Commercial recycling is continuing with collections each Tuesday and Thursday morning. The main items collected on the commercial run are cardboard and plastic sheeting .

Recycling Tours Tours at the Wylie Bay MRF have been Local Merchants supporting Bag Smart steady with visits to the centre being conducted every two months.

59 Bag Smart Campaign The Bag Smart campaign got underway in earnest during year with the formation of a committee made up of local volunteers. Regular displays at the shopping centres and direct approaches to business owners have encouraged the residents of Esperance to reduce their consumption of plastic bags from 100 000 bags per week down to 70 000 bags per week. People carrying reusable bags are a regular sight at shopping centres now.

Regular Displays manned by volunteers have helped communicate the Bag Smart message

Confidential Shredding Service The confidential shredding service with ACTIV Industries is continuing at a steady pace. A new document destruction service was introduced at the request of a local bank. Locked bins with a slot in the lid of the bin to receive confidential documents are supplied to the business. Once a month the bins are collected from the client and taken to Wylie Bay Recycling centre where the contents are mixed with office paper and baled. The documents are deemed to be confidential but do not need to be shredded.

Bulk Verge Collections Bulk verge collections for the entire town were introduced after a trial collection in Nulsen. Although the participation rate was low, most residents welcomed the service. A further collection is planned for Feb/Mar 2006.

Corporate Services

Corporate Services Team Profile EXECUTIVE MANAGER CO RPORATE SERVICES INTERNAL CONTROL STATUTORY COMPLIANCE FINANCIAL PLANNING CUSTOMER SERVICE MR PAUL BREMAN ASSET MANAGEMENT HUMAN RESOURCES MANAGEMENT SUPERVISION

AUD IT/ GRANTS MANAGEMENT INFORMATION TECHNOLOGY FINANCIAL SERVICES ADMINISTRATION & SERVICES AND COMMUNICATIONS HUMAN RESOURCES

AUDITING COMPLIANCE GENERAL LEDGER ADVISORY COMMITTEES BUDGETTING COMPUTER OPERATIONS AUDIT RATING NETWORK SUPPORT GRANTS ACQUITAL ACCOUNTS – REGULATING STAFF TRAINING & DEVELOPMENT DEVELOPMENT GRANTS COMMISSION FINANCIAL ACCOUNTING REPORT WRITING TRAINING STATUTORY MONITORING ASSET MANAGEMENT COUNCIL LIAISON ELECTRONIC EQUIPMENT NATIONAL COMPETITION PURCHASING CONTROL PAYROLL SERVICES MANAGEMENT POLICY FINANCIAL LEGISLATION VEHICLE LICENSING TELEPHONES & COMMUNICATIONS INTERNAL CONTROL INSURANCE SERVICES WEBSITE MAINTENANCE EXTERNAL AUDITING POLICY DEVELOPMENT STRATEGIC PLANNING AGENDA PREPARATION PAYROLL, DEBTORS/ CREDITORS CORPORATE/COMMUNITY SERVICES STOCK CONTROL STAFF TRAINING TAXATION BUSHFIRES FORWARD FINANCIAL MODELLING RECORDS MANAGEMENT COSTING CASH RECEIPTING INVESTMENTS CORPORATE SERVICES TEAM EXTERNAL ACCOUNTING SERVICES Paul Breman, Shane Burge, Ron Scantlebury, Mark Caporn, Anthony Sharpe, Jessica Prince, Josephine Roelofs, David Scheer, Debbie Howard, Peter Kong, Cathy Murray, Pieta Holthouse, Rebecca Eeles, Allison Guild, Andrew Fletcher, Melissa Ammon, Janine Beck, Annette Slade,

61 Financial Services After the structural reforms implemented during the 2003-04 financial year, 2004-05 was a period of consolidation for the Financial Services area. Whist there were a number of staff movements within the area, the structure as implemented in 2003-04 was maintained and continues to provide adequate resources to meet the Shire’s statutory and budgetary requirements.

Information Technology The Shire's Geographical Information System started its implementation phase with Perth CADCentre supplying the CADCorp product SIS. It is envisaged that this system will be fully operational in the 2005-06 year following the completion of the implementation and testing phases of the project.

The Civic Centre entered a new age with the introduction of a computerised ticketing system completely designed and developed in-house by the IT staff. With professional looking tickets and a graphical display of the centre's seating arrangements showing which seats have been sold and which one's are still available it has proved a success with both the public and centre management alike.

Home and Community Care implemented a new system to assist them with aged care and rostering. The introduction of Care Manager has significantly improved the efficiency of the HACC staff in performing many of their administrative tasks.

Bushfire Control and Emergency Services The 2004-05 bushfire season was the busiest in recent years, with major fires spanning several days occurring across the Shire at Cascade, Howick, Coomalbidgup, Merivale, Shark Lake and in Nulsen. In early December seven fires were reported in one day stretching the volunteers and resources to their limits.

As always, the volunteers of the Shire of Esperance Bush Fire Brigades are to be commended for their commitment and dedication and the Shire extends it’s thanks to all Brigade members for their continuing service to the community.

Given the busy season experienced, the ESL funding allocations failed to cover all operational expenses resulting in a $33,000 overspend. An application for reimbursement has been lodged with FESA. Allocations for this financial year have been made with the first instalment distributed at the beginning of September.

ESL replacement for capital equipment this year has seen a new Light Tanker for the Gibson Brigade. In addition Quarry Rd Brigade will be receiving a new 1.4 Tanker Truck in the very near future, replacing the existing 1972 International 1.4 Tanker currently on station.

District Manager, Fire Services, Stuart McIntyre, has moved from the Shire Administration Building to a new office in the Esperance Business Centre. The Shire continues to work closely with FESA on fire control, management and administration.

FESA continues to provide training to our Brigades and during the off season has completed several Basic Fire Fighting courses across the Shire as well as a Fire Control Officers course for the Scaddan Brigade.

62 Native Title and Aboriginal Heritage The Shire continues to monitor the various native title claims within our Shire and across the region. Progress is very slow with matters that are complex and require considerable research prior to determination. This work will continue together with the watching brief. Work has also continued with the formation of a joint Association with representation for the Shire and the Esperance Noongar Aboriginal Corporation Inc to manage Mount Ridley, reserve 13486. The final rules of the Association have been agreed and the process of incorporation for the Association has commenced.

Leases and Legal Documents The management and review of leases and legal documents is an ongoing process. Increasing electronic record keeping will improve our ability to search for and retrieve information held by the Shire.

Records Management The fifth year of a records management program at the Shire saw the endorsement of the Shire’s Record Keeping Plan by the State Records Commission for the maximum period of five years to 2009. The Plan is a new statutory obligation under the State Records Act 2000 which details how the Shire manages it’s recordkeeping systems. This includes control, retention and disposal of the Shire’s public records. It also requires the Shire to maintain a recordkeeping training program which is regularly reviewed. To comply with this requirement a review and upgrade of the Records induction program has commenced, which ensure that Shire employee’s are informed of their responsibilities in regard to recordkeeping.

Communications In April 2004, following a lengthy delay in procedural matters relating to land and other issues, the CDMA mobile telephone service was commissioned at Howick Hill. This installation provides a service into the eastern section of the Shire and completes a project to provide a CDMA mobile telephone service throughout the Shire. The total cost of the project was $636,000 of which the Shire received a grant of $375,000 from the Commonwealth Government via the Networking the Nation programme.

During 2004-05 Telstra installed a full CDMA base station on Condingup Peak in order to boost the CDMA signal strength in and around Condingup and towards the coastal areas in this part of the Shire. This completes the Networking the Nation grant that the Shire secured from the Federal Government to assist with this project.

National Competition Policy Statement

The Competition Principles Agreement is an Inter-government Agreement between the Commonwealth and State/Territory Governments that sets out how government will apply National Competition Policy principles to public sector organizations within their jurisdiction.

The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition 63 Principles Agreement require local government to report annually as to the implementation, application and effects of the Competition Policy.

The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting, they are: 1. Competitive Neutrality 2. Structural Review of Public Monopolies; and 3. Legislative Review In accordance with the requirements of the National Competition Policy the Shire of Esperance makes the following disclosure for 2004-2005.

Competitive Neutrality The objective of competitive neutrality is the elimination of resource allocation distortions arising out of local government ownership of significant business activities.

The Shire of Esperance has assessed its operations and considers that it has one business activity that would be classed as significant under the current guidelines. Also the Shire of Esperance does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise.

• The number of activities to which competitive neutrality principles have been applied in the reporting period is: Zero (0) • The number of activities to which competitive neutrality principles have been considered but not applied in the reporting period is: Zero (0)

Under the implementation timetable required by the National Competition Policy Statement the Shire of Esperance was to undertake a cost benefit analysis to determine which significant business activities would be subject to competitive neutrality principles by 1 June 1997. This analysis was undertaken by an independent party and summarised in a report dated December 1997.

During the reporting period the Shire of Esperance did not become aware of any allegations of non-compliance with the competitive neutrality principles made by a private entity against the Shire.

Structural Review of Public Monopolies In relation to Structural review of public monopolies the Shire of Esperance discloses the following: • Structural reform principles have been applied to the following number of activities in the reporting period: Zero (0) • Structural reform principles have been considered but not applied to the following number of activities in the reporting period: Zero (0)

As no structural reform has been applied to any activities the review requirements of principal SR.3 of Clause 7 of the Competition Policy Statement have not been undertaken.

64 Legislative Review Parties to the National Competition Policy package agreed that legislation should not restrict competition unless: • The benefits of the restriction to the community as a whole outweigh the costs; and • The objectives of the legislation can only be achieved by restricting competition.

Accordingly, the Shire of Esperance is required to implement a systematic review of all of its existing legislation to determine whether there are any direct or indirect effects on competition.

In relation to a Legislative Review the Shire of Esperance discloses that: As at the reporting date the number of by-laws and Local Laws which have been reviewed and reformed as a result of any legislative review is: one (1) • Shire of Esperance Local Laws Relating To Signs 2004 – effective from 13/01/04

As at the reporting date the number of by-laws and Local Laws which the application of any legislative review principles were considered but not applied is: Zero (0).

Report on Principal Activities

Reference is made to the Shire of Esperance document – Esperance Shire 5 Year Financial Plan: Period 2004-05 to 2008-09: Incorporating the Principal Activity Plan: Adopted Draft 2004 , and the Essence of Esperance: Strategic Plan Review, June 2004.

Division 5 of the Local Government Act 1995 sets out the statutory obligations of the Shire in respect of Annual Reports and principal activities. Section 5.53 (in particular) details specific requirements in respect of the Shire’s ’principal activities’. 1. Esperance Airport and Aerodrome Council has continued to upgrade aviation facilities at Esperance Airport in accordance with the ten (10) year Master Plan. Key projects include the extension of the main runway from 1500m to 1800m, which has received part funding from the Regional Airport Development Scheme. Land Acquisitions to facilitate this extension have been finalised and construction has commenced and is due for completion in the 2005-06 financial year.

New aviation security laws came into force in Australia on 10 March 2005 Esperance Airport became a security controlled airport and has begun implementing transport security measures.

Once again passenger numbers increased in 2004-05 with 35,257 utilising Esperance Airport this amounts to an increase of more than 5,000 from 30,013 for the 2003-04 financial year.

65 2. Plant Replacement The following items of plant were replaced during the 2004-05 financial year:

• G29 Grader • TT3 Tipper Trailer • TC23 Verge Mower • T70 Gardeners Tipper Truck 3T • T71 Condingup Depot Tipper Truck 10T • T73 Town Tipper Truck 10T • T74 Town Tipper Truck 3T • T76 8 Wheel Tipper Truck • T77 8 Wheel Tipper Truck

The above plant replacements/ purchases were undertaken following a rigorous assessment of all trade units offered. This assessment involved whole of life costs as well as input from Council’s mechanics and operators.

The scheduled plant replacements/ purchases were undertaken well within the overall budget allocation resulting in a surplus of approximately $68,000 which was transferred to the plant replacement reserve.

3. Bay of Isles Leisure Centre

The centre has continued to provide the community with a wide variety of programmes - to meet the diverse needs of individuals, organizations and other groups. Where it has identified needs, new programmes have been initiated.

During 2004-05 the Bay of Isles Leisure Centre continued to build on previous patronage levels.

Following an investigation of possible options for the refurbishment of the Aquatic area floors and seating, Council contracted AVP to replace the original floor and seat covering in the Aquatic area with tiles. The extensive research conducted revealed that this option would be the most durable and safest in terms of providing a non-slip surface. The Aquatic Area of the Centre was closed to the public for a period of four weeks, from early July to early August 2004 to allow for the completion of this work.

In an effort to reduce the amount of gas used to heat the pools, Air Handling Units and Aquatic Area showers, a partnership was formed with Burns and Roe Worely and Council to purchase pool blankets. Pool blankets for all pools arrived and were fitted for use on rollers. Staff were provided with work instructions on how to install and uninstall

66 these items each evening and morning respectively. Gas usage dropped to an average of 11% every 24hrs as opposed to an average of 13% prior to blanket being installed and condensation within the Centre has been reduced. This will assist in building maintenance issues and extend the life of the facility.

4. Waste Management The location of a suitable site for a new landfill is progressing slowly. Two proposed locations have been rejected on environmental and aesthetic considerations. Most suitable locations fall into the Lake Warden catchment area and as the lakes are RAMSAR listed, any developments in the catchment draw close scrutiny.

Removal of scrap metals from the waste stream has been encouraged by the demand for scarp steel worldwide. Over the year there was an increased amount of inert waste (construction and demolition) deposited in the landfill due to the increase in building works and the demolition of the CSBP facilities

Condingup landfill site is now the only rural landfill in operation after the closure of the Scadden and Grass Patch landfill sites in the year. There is some pressure from the Department of Environment to close the Condingup site as well.

5. Building Maintenance/ Refurbishment In this 4th year of a 20-year maintenance programme, the Council continued to maintain and/or refurbish a range of building assets. Council allocated $445,000 for funding the 2004-05 financial year programmes. The Council completed its works for 2004-05 on time and within budget.

In keeping with Council’s goal of having maintenance funding equate to 2% of the value of building assets by 2005-06, maintenance spending increased from 1.22% (in 2002-03) to 1.85% (in 2004-05).

In addition to the day-to-day building maintenance carried out, a number of significant projects were completed in this financial year, including the following : • Civic Centre- roofing replacement program, floor coverings, painting • Senior Citizens Centre- kitchen upgrade, dishwasher, grease traps • Hospital Hostel-, internal painting • Grass Patch house, painting • Cascade house, roofing, painting • Country halls- painting guttering window treatments • Cascade recreation centre- fascias, painting • GSG stadium- painting kitchen carpets • Community house- painting • Bay of Isles- painting and tiling of pool concourse, major maintenance • Museum village- painting, BBQ’s • Museum- fire safety cabinets • Cannery arts- lighting, painting • Depot- guttering, roof sheeting • Administration building replacement roof sheeting, auto doors, dishwasher • Administration building, extension to staff room • Library, carpets, paving and painting • Public Toilets- construction (museum village) rendering

67 6. Major Land Developments Stage 1 (33 lots) of the Flinders Estate was developed and sold during the financial year. The Shire is negotiating with the Department of Planning and Infrastructure and private landholders to expand the Flinders Estate – by developing the land east of Stage 1 up to and including the Bandy Creek precinct. An Outline Development Plan to guide the overall development of the area is being prepared for submission to the Western Australian Planning Commission in the coming financial year.

The Shark Lake Industrial Park project – a joint Shire of Esperance and Esperance Port Authority arrangement – is progressing, with acquisition of the site completed in February 2005. The Shire has obtained a favourable assessment from the Environment Protection Authority (‘’EPA’’), and Environment Australia in respect of hydrological and water quality issues. In terms of the latter point, funds have been allocated to continue with further studies and water monitoring activities. The required amendment to the Town Planning Scheme to rezone the land for industrial purposes was formally gazetted on 20 th May 2005. Following the requirements of the Scheme amendment, an Outline Development Plan for the whole of the Industrial Park and a subdivision application are being prepared for submission to the Western Australian Planning Commission in the coming financial year.

Financial Report for Year Ended 30 June, 2005

68 SHIRE OF ESPERANCE

Financial Report

2004-2005

General Purpose Financial Report Table of Contents Annual Financial Report For the year ending 30th June 2005 2004-05

FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2005 TABLE OF CONTENTS Page Statement by Chief Executive Officer i

Independent Audit Report ii

Operating Statement 1 Statement of Financial Position (Balance Sheet) 2 Statement of Changes in Equity 3 Statement of Cash Flows 4

Notes to and Forming Part of the Financial Report Note Significant Accounting Policies 1 5 Operating Revenues and Expenses 2 10 Cash 3 15 Receivables 4 16 Inventories 5 16 Property, Plant and Equipment 6 17 Infrastructure 7 19 Payables 8 21 Interest Bearing Liabilities 9 21 Provisions 10 21 Reserves - Asset Revaluation 11 22 Reserves - Cash Backed 12 22 Notes to the Statement of Cash Flows 13 30 Capital and Leasing Commitments 14 31 Contingent Liabilities 15 31 Joint Venture and Major Land Transaction 16 32 Assets by Reporting Program 17 33 Financial Ratios 18 33 Trust Funds 19 34 Disposal of Assets 20 34 Budget Comparison 21 35 Information on Borrowings 22 36 Rating Information 23 38 Employees Renumeration 24 39 Discounts, Incentives, Concessions and Write-offs 25 39 Interest Charges and Instalments 26 40 Fees and Charges 27 40 Grant Revenue 28 40 Councillors' Remuneration 29 41 Major Land Transactions 30 42 Major Trading Undertakings 31 43 Employee Numbers 32 44 Economic Dependency 33 44 Conditions over Contributions 34 45

Shire of Esperance Statement by Annual Financial Report Chief Executive Officer For the year ending 30th June 2005 2004-05

FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2005

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

STATEMENT BY CHIEF EXECUTIVE OFFICER

The attached financial report of the Shire of Esperance being the annual financial report and other information for the financial year ended 30th June 2005 are in my opinion properly drawn up to present fairly the financial position of the Shire of Esperance at 30th June 2005 and the results of the operations for the financial year then ended in accordance with the Australian Accounting Standards (except to the extent that these have been varied in the Statement of Accounting Policies required by Australian Accounting Standards AAS6 "Accounting Policies" and the accompanying notes to the annual financial report) and comply with the provisions of the Local Government Act 1995 and regulations under that Act.

Signed on the 28th day of September 2005

______

Chief Executive Officer Michael SL Archer

Shire of Esperance

Operating Statement Annual Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 Actual Budget Actual NOTE $ $ $ REVENUES FROM ORDINARY ACTIVITIES Governance 110,883 69,471 73,392 General Purpose Funding 11,103,738 10,818,863 10,488,720 Law, Order, Public Safety 396,689 226,400 373,361 Health 180,425 149,800 142,590 Education and Welfare 1,220,692 1,176,487 1,359,449 Community Amenities 1,531,986 1,376,618 1,332,641 Recreation and Culture 989,888 975,748 971,968 Transport 3,665,585 3,784,806 3,070,368 Economic Services 220,460 209,231 196,280 Other Property and Services 2,736,899 2,076,975 1,682,954 2 22,157,245 20,864,399 19,691,723

EXPENSES FROM ORDINARY ACTIVITIES EXCLUDING BORROWING COSTS EXPENSE Governance 715,175 699,948 609,259 General Purpose Funding 241,257 142,298 209,877 Law, Order, Public Safety 784,421 777,938 709,324 Health 216,479 297,033 226,393 Education and Welfare 1,313,703 1,306,699 1,346,325 Community Amenities 2,685,060 2,698,058 2,305,932 Recreation & Culture 3,769,975 3,726,505 3,311,885 Transport 7,904,147 7,697,908 7,547,222 Economic Services 381,188 358,630 336,388 Other Property and Services 1,816,881 1,639,993 1,326,401 2 19,828,286 19,345,010 17,929,006

BORROWING COSTS EXPENSE Law, Order, Public Safety - - 322 Education and Welfare - 5,446 - Recreation & Culture 42,061 41,663 48,188 Transport 207 207 3,251 Economic Services 489 489 1,089 Other Property & Services - 29,834 - 2 42,757 77,639 52,850

NET RESULT 2,286,202 1,441,750 1,709,867

This statement is to be read in conjunction with the accompanying notes. Pages 5 - 44

Page 1 Shire of Esperance Statement of Financial Position Annual Financial Report (Balance Sheet) For the year ending 30th June 2005 2004-05

2005 2004 Actual Actual NOTE $ $ CURRENT ASSETS Cash Assets 3 4,857,914 3,147,866 Receivables 4 1,261,464 2,122,260 Inventories 5 187,222 841,854 TOTAL CURRENT ASSETS 6,306,600 6,111,980

NON-CURRENT ASSETS Receivables 4 546,978 578,282 Property, Plant and Equipment 6 34,180,711 33,178,316 Infrastructure 7 187,941,994 186,827,187 TOTAL NON-CURRENT ASSETS 222,669,683 220,583,785

TOTAL ASSETS 228,976,283 226,695,765

CURRENT LIABILITIES Payables 8 1,135,290 1,170,039 Interest-bearing Liabilities 9 75,150 209,083 Provisions 10 553,984 467,143 TOTAL CURRENT LIABILITIES 1,764,424 1,846,265

NON-CURRENT LIABILITIES Interest-bearing Liabilities 9 534,351 567,056 Provisions 10 786,085 677,223 TOTAL NON-CURRENT LIABILITIES 1,320,436 1,244,279

TOTAL LIABILITIES 3,084,860 3,090,544

NET ASSETS 225,891,423 223,605,221

EQUITY Retained Surplus 117,522,000 116,084,493 Reserves - Asset Revaluation 11 104,385,150 104,385,150 Reserves - Cash Backed 12 3,984,273 3,135,578 TOTAL EQUITY 225,891,423 223,605,221

This statement is to be read in conjunction with the accompanying notes. Pages 5 - 44

Page 2 Shire of Esperance Statement of Changes of Equity Annual Financial Report For the year ending 30th June 2005 2004-05

NOTE 2005 2004 Actual Actual $ $ RETAINED PROFITS (SURPLUS)

Balance as at 1 July 2004 116,084,493 115,061,694

Change in Net Assets Resulting from Operations 2,286,202 1,709,867

Initial Introduction of Accounting Standard AASB 1028 "Employee Benefits"" - -

Transfer from/(to) Reserves (848,695) (687,068) Balance as at 30 June 2005 117,522,000 116,084,493

RESERVES - CASH BACKED

Balance as at 1 July 2004 3,135,578 2,448,510

Amount Transferred (to)/from Accumulated Surplus 848,695 687,068 Balance as at 30 June 2005 12 3,984,273 3,135,578

RESERVES - ASSET REVALUATION

Balance as at 1 July 2004 104,385,150 104,385,150

Revaluation Increment - -

Revaluation Decrement Balance as at 30 June 2005 11 104,385,150 104,385,150

TOTAL EQUITY 225,891,423 223,605,221

This statement is to be read in conjunction with the accompanying notes. Pages 5 - 44

Page 3 Shire of Esperance Statement of Cashflows Annual Financial Report For the year ending 30th June 2005 2004-05

NOTE 2005 2005 2004 Actual Budget Actual Cash Flows From Operating Activities $ $ $ Receipts Rates 7,291,415 7,075,243 6,757,823 Grants and Subsidies - operating 4,721,735 4,487,139 4,648,687 Contributions, Reimbursements & Donations 896,272 521,732 734,266 Fees and Charges 6,992,107 5,943,731 3,363,177 Interest Earnings 430,337 328,479 329,130 Goods and Services Tax 1,303,775 1,316,201 1,178,601 Other - - - 21,635,641 19,672,525 17,011,684 Payments Employee Costs (Operating only) (6,767,355) (6,743,323) (6,189,198) Materials and Contracts (3,777,767) (3,924,023) (3,632,328) Utilities (gas, electricity, water, etc) (423,505) (395,771) (351,242) Insurance (299,266) (296,888) (319,099) Interest (44,033) (79,079) (54,096) Goods and Services Tax (1,329,168) (1,195,819) (1,179,793) Other (692,051) (666,614) (790,076) (13,333,145) (13,301,517) (12,515,832) Net Cash Provided By (Used In) Operating Activities 13(b) 8,302,496 6,371,008 4,495,852

Cash Flows from Investing Activities Payments for Purchase of Property, Plant & Equipment (3,723,338) (4,203,220) (2,274,595) Payments for Construction of Infrastructure (6,296,878) (7,494,407) (5,738,737) Grants/Contributions for the Development of Assets 2,566,511 3,234,823 2,644,432 Proceeds from Sale of Plant & Equipment 987,548 992,500 854,534 Net Cash Provided By (Used In) Investing Activities (6,466,157) (7,470,304) (4,514,366)

Cash Flows from Financing Activities Advances to Community Groups (60,000) (480,000) (30,000) Repayment of Debentures (121,273) (121,484) (214,795) Proceeds from Advances (105,365) 93,214 105,365 Proceeds from Self Supporting Loans 100,348 - 136,543 Proceeds from New Debentures 60,000 1,380,000 30,000 Net Cash Provided By (Used In) Financing Activities (126,290) 871,730 27,113

Net Increase (Decrease) in Cash Held 1,710,049 (227,566) 8,599 Cash at Beginning of Year 3,147,866 3,043,678 3,139,267 Cash at End of Year 13(a) 4,857,915 2,816,112 3,147,866

This statement is to be read in conjunction with the accompanying notes. Pages 5 - 44

Page 4 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

1. SIGNIFICANT ACCOUNTING POLICIES

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

(a) Basis of Accounting The financial report is a general purpose financial report which has been prepared in accordance with applicable Australian Accounting Standards and the Local Government Act 1995 (as amended) and accompanying regulations (as amended). The report has also been prepared on the accrual basis under the convention of historical cost accounting.

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

In the process of reporting on the local government as a single unit, all transactions and 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, but a separate statement of those monies appears at Note 19 to this financial report.

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

(d) Fixed Assets Property, plant and equipment and infrastructure assets are brought to account at cost or independent or management valuation, where applicable, any accumulated depreciation or amortisation.

The value of all infrastructure assets (other than bridges and land under roads) has been recorded in the Statement of Financial Position. Bridges and land under roads are excluded from infrastructure in accordance with legislative requirements.

As of 1 July 2001, the Council elected to revert to the cost basis for measuring land and buildings and all infrastructure assets (other than roads) that were being carried at a revalued amount at the immediately preceding reporting date being 30 June, 2001.

This was achieved by deeming the carrying amount of the non-current assets comprising the particular class to be their cost and complied with the requirements on first application of the Accounting Standard AASB 1041 'Revaluation of Non-Current Assets'.

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

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

Page 5 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

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

Buildings 20 to 50 years Furniture and Equipment 5 to 20 years Motor Vehicles 3 years Roadmaking Plant 5 to 10 years Other Plant & Equipment 3 to 15 years Infrastructure Roads and Streets - Construction Road Base 50 years Roads and Streets - Bituminous Seal 25 years Footpaths - slab 10 to 30 years Parking Facilities 15 to 16 years Water supply piping & drainage systems 40 years Parks and Gardens 20 years Airport 35 to 36 years

(g) 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 company, are classified as finance leases. Finance leases are capitalised recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual value. Leased assets are amortised over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

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

(h) Investments All investments are valued at cost and interest on those investments is recognised when accrued.

(i) Joint Venture Any interest in a joint venture has been recognised in the financial statements by including its share of any assets, liabilities, revenues and expenses of the joint venture within the relevant items reported in the statement of financial position and operating statement. Information about the joint venture is set out in Note 16.

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

Page 6 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(i) Wages, Salaries and Annual Leave The provision for employees’ benefits to wages, salaries and annual leave represents the amount that the municipality has a present obligation to pay resulting from employees services to balance date. The provision has been calculated at nominal amounts based on remuneration rates the Council expects to pay and includes related on-costs.

(ii) Long Service Leave The provision for employees’ benefits for long service leave represents the present value of the estimated future cash outflows to be made by the employer resulting from the employees' service to balance date.

(k) 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 have been transferred to the Unspent Grants and Contributions Reserve. Details of those undischarged conditions are discloed in Note 34.

(l) Superannuation The Shire of Esperance contributes to the Local Government Superannuation Scheme and the Occupational Superannuation Fund. Both funds are defined contribution schemes.

(m) Interest Rate Risk The Shire's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates, is considered negligible for all financial instruments other than borrowings. Information on interest rate risk as it applies to borrowings is disclosed in Note 22(e).

(n) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to and forming part of the financial report. The Shire does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Shire.

(o) Net Fair Values The net fair value of assets and liabilities approximate their carrying values. No financial assets and financial liabilities are readily traded on organised markets in standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the Council intends to hold these assets to maturity.

The aggregate net fair value and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to and forming part of the financial report.

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

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

Page 7 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(r) Impacts of Adopting Australian Equivalents to International Financial Reporting Standards (AIFRs)

For reporting periods commencing on or after 1 January 2005, the Shire will be required to prepare financial statements using Australian equivalents to International Financial Reporting Standards and their related pronouncements (AIFRs) as issued by the Australian Accounting Standards Board (AASB).

As the AASB has prohibited the early adoption of AIFRSs, the Shire will report for the first time in compliance with AIFRSs in the annual financial report for the year ended 30 June 2006 (that is the year commencing 1 July 2005).

The Shire is required to prepare an opening balance sheet in accordance with AIFRSs as at 1 July 2004. Most adjustments required on transition to AIFRSs will be made retrospectively against opening retained earnings on 1 July 2004 in accordance with AIFRSs. Transitional adjustments relating to those standards for which comparitives are not required will only be made with effect from 1 July 2005.

The transition to AIFRSs has been managed via a process of education which includes technical traning and liaison with the Shire's auditors and industry groups. This has included a review of AIFRSs to determine the effect on the Shire's existing accounting policies and treatments.

The annual financial report for the year ended 30 June 2005 has been prepared in accordance the Australian Accounting Standards and other financial reporting requirements (Australian GAAP). The differences between Australian GAAP and AIFRSs identified to date as potentially having a significant effect on the Shire are summarised below.

Property, Plant and Equipement

AIFRSs provides an option to value each class of property, plant and equipment at either cost or fair value. At the transition date, an election is available under AIFRSs transition rules to use cost, fair value or deemed costs as the opening carrying value. It is the current intention of the Shire to: * value property, plant and equipment and infrastructure (other than roads) on the cost basis, adjusted for any accumulated impairment balances. * use fair value for the Shire's road infrastructure network and revalued with sufficient regularity to ensure carrying amounts are not materially different from their fair value at reporting date.

It is not anticipated any adjustments to carrying values will result from the above approach. If they do, they will be recognised against opening retained earnings or past revaluation reserves in the opering balance sheet.

Employee Benefits

AIFRSs require all long term employee benefits to be measured at present value. This treatment remains unchanged for the measurement of non current long service leave entitlements under current Australian GAAP. However, non current annual leave entitlments are currently measured at the amount the Shire expects to pay and not at present value.

It is not anticipated any such adjustment will be significant. However, adjustments to provisions, if any, will be made against opening retained earnings in the opening balance sheet and the effect on the year ended 30 June 2005 will also be adjusted via the operating statement for comparison purposes in the Shire's first AIFRSs financial report.

Impairment of Assets

Currently, assets are written down to recoverable amount when the asset's carrying amount exceeds recoverable amount. In determining recoverable amount, expected future cash flows are currently not discounted to their present value.

Page 8 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(r) Impacts of Adopting Australian Equivalents to International Financial Reporting Standards (AIFRs) (Continued)

Under AIFRSs, both current and non current assets are tested for impairment on an individual basis. If this is not possible, the Shire is required to test for impairment at the "Cash Generating Unit" CGU) level.

It is anticipated the Shire's material assets will be able to be tested for impairment on an individual basis and the CGU level will not apply.

Assets are tested for impairment where an impairment trigger (per AIFRSs) has occurred. Intangibles with indefinite useful lives will be tested annually for impairment (or more frequently if events or circumstances indicate).

To the extent any impairment is determined, this will be recognised immediately in the operating statement.

Assets may be considered impaired in one reporting period and not in subsequent periods. Therefore, it is not practicable to determine the impact of the changes in accounting policy for future financial reports as any impairment or reversal thereof will be affected by future conditions.

Intangibles

AIFRSs now require the recognition of intangibles not currently required under current Australian GAAP.

Intangibles identified will be recognised against opening retained earnings.

Intangibles with indefinite useful lives will be subject to impairment testing annually (or more frequently if events or circumstances indicate it might be impaired). Impairment losses will be recognised immediately in the operating statement as they occur.

This change in policy may result in increased volatility of future results if intangibles are recognised and impairment losses occur.

Based on reviews preformed to date, it is considered unlikely any significant intangibles exist.

Financial Assets and Financial Liabilities

Under current Australian GAAP, financial assets and financial liabilities are recognised at cost, at fair value, or at net market value.

On adoption of AIFRSs, the Shire will be required to classify these financial instruments into various specified categories (being either of trading assets, held to maturity investments, loans and receivables or available for sale financial assets). The classification of the instrument determines the instrument's subsequent measurement.

It is anticipated, based on definitions contaned within AIFRSs, the Shire's financial assets and liabilities will be classified in the loans and receivables category and will be measured at their initial regognition amount.

Based on reviews preformed to date, it is not anticipated any such adjustments will be necessary and if they are, they will not be significant.

However, in accordance with AIFRSs, such financial assets will be subject to annual impairment testing and to the extent any impairment testing is determined, it will be recognised immediately in the operating statement.

Assets may be considered impaired in one reporting period and not in subsequent periods. Therfore, it is not practicable to determine the impact of the change in accounting policy for future financial reports as any impairment or reversal thereof will be affected by future conditions.

Page 9 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2. REVENUES AND EXPENSES

(a) Result from Ordinary Activities

The result from ordinary activities includes: 2005 2004 (i) Charging as Expenses: Actual Actual $ $

Auditors Remuneration - Audit 13,050 11,200 - Other Services 2,700 950

Bad and Doubtful Debts Rates 90,474 474 General Debtors 3,196 1,654

Depreciation Buildings 543,554 546,011 Furniture and Equipment 119,726 131,927 Plant and Equipment 1,005,937 970,438 Construction other than Building 133,706 120,781 Roads 4,461,723 4,243,555 Lighting 9,015 8,087 Footpaths 119,106 109,873 Parks and Reserves 311,186 309,713 Drainage 58,407 51,788 Pipes 112,653 112,653 Other 36,526 28,688 Tourist Signs 1,441 1,238 Airport 43,981 43,194 Parking 28,033 28,033 6,984,994 6,705,979

Rental Charges - Operating Leases 110,449 112,792

(ii) Crediting as Revenues: 2005 2005 2004 Actual Budget Actual $ $ $

Interest Earnings Investments - Reserve Funds 164,120 134,508 113,856 - Other Funds 225,789 154,000 162,691 Other Interest Revenue (refer note 26) 51,923 41,000 47,830 441,832 329,508 324,377

Page 10 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2. REVENUES AND EXPENSES (Continued)

(b) Revenues and Expenses from Operations 2005 2005 2004 Classified According to Nature or Type Actual Budget Actual $ $ $ Revenues from Ordinary Activities Rates (refer note 23) 7,230,646 7,088,153 6,780,502 Grants and Subsidies - operating (note 28) 4,701,883 4,505,419 4,631,548 Grants and Subsidies - non-operating (note 28) 2,869,593 3,234,823 2,624,056 Contributions Reimbursements and Donations 825,886 521,732 716,292 Book-Profit on Asset Disposals (note 20) 155,864 184,316 99,500 Fees and Charges (note 27) 5,931,541 5,000,448 4,515,448 Interest Earnings (note2(a)) 441,832 329,508 324,377 Other Revenue - - - 22,157,245 20,864,399 19,691,723 Expenses from Ordinary Activities Employee Costs (Operating only) 6,900,476 6,713,761 6,364,429 Materials and Contracts 4,373,764 4,422,729 3,158,458 Utilities (gas, electricity, water, etc) 393,028 388,340 379,407 Depreciation on Non-current Assets (note 2(a)) 6,984,994 6,762,744 6,705,979 Book-Loss on Asset Disposals (refer note 20) 214,139 109,785 190,052 Insurance 299,266 296,888 319,099 Other 662,619 650,763 811,582 19,828,286 19,345,010 17,929,006 Interest/Borrowing Costs (refer Note 2(c)) 42,757 77,639 52,850 19,871,043 19,422,649 17,981,856

Comprises:

Debentures (refer Note 22(a)) 42,757 77,639 52,850 42,757 77,639 52,850

Note, that the above disclosure of revenue and expenditure by its nature/type rather than by the statutory reporting program only relate to the Shire of Esperance's operations. For example, employee costs shown above reflect operating expenses only and do not include any employee costs capitalised when constructing infrastructure or other assets.

Page 11 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2. OPERATING REVENUES AND EXPENSES (Continued)

(d) Statement of Objectives, Reporting Programs and Nature-Type Classifications

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

COMMUNITY VISION : We make It happen! The spirit of Esperance is unique, we take pride in being a creative, caring and supportive community. We live in a diverse and dynamic region with outstanding opportunities for all. As custodians, we are committed to protect our spectacular natural environment. Esperance has a sense of community ownership with commitment to determine is own direction.

REPORTING PROGRAM DESCRIPTIONS Council operations as disclosed encompass the following service orientated activities/programs:

GOVERNANCE Objective : To provide a decision making process for the efficient allocation of scarce resources Activities : Includes the activities of members of council (Councillors) and the administrative support available to the Council for the provision of governance of the district. Other costs relate to the tasks 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 protection of the environment other aspects of public safety including emergency services.

HEALTH Objective: To provide an operational framework for good community health Activities : Inspection of food outlets and their control as well as 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 citizens centre and aged care centre. Provision and maintenance of home & community care programs and youth support services.

HOUSING Objective: To provide and maintain elderly residents housing Activities: Provision and maintenance of elderly residents housing

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 resources which will help the social well being of the community Activities : Maintenance of public halls, civic centre, 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.

Page 12 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2. OPERATING REVENUES AND EXPENSES (Continued)

(d) Statement of Objectives, Reporting Programs and Nature-Type Classifications

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. Provision and operation of airport.

ECONOMIC SERVICES Objective: To help promote the shire and it's 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 & SERVICES Objective: To monitor and control Council's overheads operating accounts. Activities : Private works operation, plant repair and operation costs and engineering operation costs.

NATURE-TYPE CLASSIFICATIONS

The Shire of Esperance is required by the Australian Accounting Standards to disclose revenue and expenditure according to it's nature/type classification. The following nature and type descriptions are also required by State Government regulation.

Revenue

Rates All rates levied under the Local Government Act 1995. Includes general, differential, specific area rates, minimum rates, interim rates, back rates, ex-gratia rates, less discounts offered. Excludes administration fees, interest on instalments, interest on arrears, service charges and sewerage rates.

Grants and Subsidies Grants and subsidies received from government and non-government entities. Includes operating grants for the purchase or the development of assets.

Contributions, reimbursements and donations Revenues received for contribution to works and services such as crossings, footpaths, road re- instatements etc., contributions by community groups and other authorities to operating costs of shared facilities such as libraries and sports venues and reimbursement of expenses incurred in operating community facilities.

Profit on asset disposal Profit on the disposal of assets including gains on the disposal of long term investments. Losses are disclosed under the expenditure classifications.

Service charges Service charges imposed under Division 6 of Part 6 of the Local Government Act 1995. Regulation 54 of the Local Government (Financial Management) Regulations identifies the charges, which can be raised. These are television and radio broadcasting, volunteer bush fire brigades, underground electricity and neighbourhood surveillance services. Excludes rubbish removal charges.

Fees and charges Revenue (other than service charges) from the use of facilities and charges made for local government services, sewerage rates, rentals, hire charges, fee for service, photocopying charges, licences, sale of goods or information, fines, penalties and administration fees.

Page 13 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2. OPERATING REVENUES AND EXPENSES (Continued)

(d) Statement of Objectives, Reporting Programs and Nature-Type Classifications

Interest Earnings Interest and other items of a similar nature received from bank and investment accounts, interest on rate instalments, interest on rate arrears and interest on debtors.

Other revenue/income Other revenue, which can not be classified under the above headings, includes dividends, discounts, rebates etc.

Expenditure

Employee costs All costs associated with the employment of persons such as salaries, wages, allowances, benefits such as vehicle and housing, superannuation, employment expenses, removal expenses, relocation expenses, worker's compensation insurance, training costs, conferences, safety expenses, medical examinations, fringe benefits tax etc.

Material and contracts All expenditure on materials, supplies and contracts not classified under other headings. These include supply of goods and materials, legal expenses, consultancy, maintenance agreements, communication expenses, advertising expenses, membership, periodicals, publications, hire expenses, rental, leases, postage and freight etc.

Utilities (gas, electricity, water, etc.) Expenditures made to respective agencies for the provision of power, gas or water. Excludes expenditures incurred for the re-instatement of road works on behalf of these agencies.

Depreciation on non-current assets Depreciation expense raised on all classes of assets.

Loss on asset disposal Loss on the disposal of fixed assets.

Interest expenses Interest and other costs of finance paid, including costs of finance for loan debentures, overdraft accommodation and re-financing expenses.

Insurance All insurance other than worker's compensation and health benefit insurance included as a cost of employment.

Other expenditure Statutory fees, taxes, provision for bad debts. Donations and subsidies made to community groups.

Page 14 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05 2005 2004 Actual Actual 3. CASH ASSETS $ $

Unrestricted 873,641 12,288 Restricted (Cash Reserves) 3,984,273 3,135,578 4,857,914 3,147,866

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

Cash Reserves: Land Purchase & Development Reserve 911,649 1 Council Buildings Construction Reserve 178,555 191,560 Aged Persons Hostel Reserve 38,746 36,798 Eastern Suburbs Water Pipeline Reserve 70,178 55,622 Tanker Jetty Reserve 77,350 48,066 Aerodrome Reserve 1,035,573 1,077,551 Salmon Gums Quarry Reserve 6,277 8,431 Municipal Museum Reserve 10,210 13,895 Civic and Cultural Centre Reserve - 181,782 Meat Inspection Services Reserve 64,428 40,844 Off Street Parking Reserve 11,022 10,468 Sanitation (Rubbish Removal) Services Reserve 312,347 162,134 HACC Programme Reserve 38,389 54,372 Caravan Park Sewerage Reserve - - Gravel Resources Compensation Reserve 34,159 32,442 Southern Suburbs Water Supply Reserve 23,998 21,926 Cemetery Reserve 7,529 4,301 Unspent Grants & Contributions Reserve 282,540 445,416 Historical Village Reserve 20,614 14,534 Plant Replacement Reserve 298,358 255,172 Employee Entitlements- Annual Reserve 272,585 208,580 Employee Entitlements- Long Service Reserve 154,781 64,516 History Book Reserve 7,394 5,342 Tanker Jetty Donations Reserve 8,135 6,350 Library Reserve 11,267 8,849 Bush Fire Plant Reserve 5,091 12,099 Public Open Space Contributions 28,561 27,125 Leisure Centre Capital Reserve - 80,364 Lake Monjinup Reserve 73 1,114 Drainage Reserve 51,020 48,455 Building Maintenance Reserve 23,444 17,469 Total Reserves 3,984,273 3,135,578

Page 15 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05 2005 2004 Actual Actual 4. RECEIVABLES $ $

Current Rates Outstanding 234,003 223,487 Rubbish Charges 14,077 23,571 General 863,722 1,667,791 Provision for Doubtful Debtors (90,474) (495) Goods & Services Tax 146,966 121,573 Interest 14,263 2,719 Self Supporting Loan Debtors 78,907 83,614 1,261,464 2,122,260 Non-Current Self Supporting Loan Debtors 534,351 570,813 Rates Outstanding - Pensioners 12,627 7,469 546,978 578,282

5. INVENTORIES

Current Roadmaking Materials 146,777 125,135 Fuel and Oils 24,280 20,183 Goods held for Resale 16,165 15,094 Land Held for Resale- cost (refer note 30) Cost of Acquisition (Land) - 8,227 Development Costs - 673,215 187,222 841,854

Page 16 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2004 Actual Actual 6. PROPERTY, PLANT AND EQUIPMENT $ $

Land and Buildings - cost 30,295,155 28,920,694 Less Accumulated Depreciation (4,918,127) (4,390,658) 25,377,028 24,530,036

Office Furniture - cost 303,815 294,108 Less Accumulated Depreciation (239,896) (229,015) 63,919 65,093

Office Equipment - cost 995,133 1,074,047 Less Accumulated Depreciation (814,468) (852,345) 180,665 221,702

Other Furniture & Equipment - cost 748,923 748,155 Less Accumulated Depreciation (608,987) (567,657) 139,936 180,498

Other Plant and Equipment -cost 2,023,853 1,964,393 Less Accumulated Depreciation (1,159,465) (953,337) 864,388 1,011,056

Motor Vehicles - cost 1,589,170 1,276,026 Less Accumulated Depreciation (251,686) (203,625) 1,337,484 1,072,401

Construction other than buildings - cost 2,457,346 2,359,320 Less Accumulated Depreciation (1,018,888) (885,182) 1,438,458 1,474,138

Road Making Plant - cost 7,604,711 7,225,127 Less Accumulated Depreciation (2,825,878) (2,601,735) 4,778,833 4,623,392

Total Property, Plant and Equipment 34,180,711 33,178,316

Effective from 1 July 2001, Council deemed the carrying amount of land and buildings previously carried at a revalued amount based on market value to be their cost.

This was in accordance with the requirements on first application of Accounting Standard AASB 1041 'Revaluation of Non-Current Assets'. These assets, along with all other property, plant and equipment asset classes, are now being carried at cost and are not subject to a policy of regular revaluation.

Valuations of Land and Buildings Measured at Cost Basis

In accordance with the requirements of of AAS 36 "Statement of Financial Position" the current valuation of land and buildings disclosed above and measured on the cost basis is as follows:

Current valuation: $ 53,906,000

The above valuation is a management valuation based on the written down replacement cost of all of Council's land and buildings as at 30 June 2005.

It is not considered to be independent in nature.

Page 17 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

6. PROPERTY, PLANT AND EQUIPMENT (Continued)

Movements in Carrying Amounts

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

Land Other Construction Road & Office Office Furniture & Plant & Motor other than Making Buildings Furniture Equipment Equipment Equipment Vehicles Building Plant Total

Balance as at 1st July 2004 24,530,036 65,093 221,702 180,498 1,011,056 1,072,401 1,474,138 4,623,392 33,178,316

Additions 1,501,462 9,707 30,698 1,057 59,459 921,190 98,026 1,229,540 3,851,139

(Disposals) (110,916) - (4,409) (100) - (519,846) - (410,550) (1,045,821)

Revaluation - Increments ------(Decrements) ------

Write-downs ------

Depreciation (Expense) (543,554) (10,881) (67,326) (41,519) (206,127) (136,261) (133,706) (663,549) (1,802,923)

Other Movements ------

Balance as at 30 June 2005 25,377,028 63,919 180,665 139,936 864,388 1,337,484 1,438,458 4,778,833 34,180,711

Page 18 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2004 7. INFRASTRUCTURE $ $

Roads - management valuation 2002 255,904,115 250,834,628 Less Accumulated Depreciation (79,016,481) (74,554,758) 176,887,634 176,279,870

Footpaths - cost 4,014,837 3,533,027 Less Accumulated Depreciation (1,072,980) (953,874) 2,941,857 2,579,153

Drainage - cost 2,513,853 2,320,116 Less Accumulated Depreciation (913,202) (854,795) 1,600,651 1,465,321

Culverts & Pipes - cost 4,506,113 4,506,114 Less Accumulated Depreciation (3,163,033) (3,050,380) 1,343,080 1,455,734

Parks & Ovals - Cost 6,236,173 6,222,589 Less Accumulated Depreciation (4,384,945) (4,073,759) 1,851,228 2,148,830

Street Lighting - Cost 329,431 265,082 Less Accumulated Depreciation (50,476) (41,461) 278,955 223,621

Tourist Road Signs - Cost 47,542 47,542 Less Accumulated Depreciation (4,750) (3,310) 42,792 44,232

Esperance Airport - Cost 1,881,637 1,556,205 Less Accumulated Depreciation (369,871) (325,890) 1,511,766 1,230,315

Parking - Cost 420,500 420,500 Less Accumulated Depreciation (148,578) (120,545) 271,922 299,955

Other - Cost 1,341,476 1,192,997 Less Accumulated Depreciation (129,367) (92,841) 1,212,109 1,100,156

Total Infrastructure Assets 187,941,994 186,827,187

Effective from 1 July 2001, Council deemed the carrying amount of all infrastructure assets, other than roads, previously carried at a revalued amount based on market value, to be their cost.

This was in accordance with the requirements on first application of Accounting Standard AASB 1041 'Revaluation of Non-Current Assets'. These assets, are now being carried at cost and are not subject to a policy of regular revaluation.

Council have adopted a policy of re-valuing roads with sufficient regularity to ensure the carrying amount of each road asset is fairly stated at reporting date. This policy accords with the requirements of AASB 1041.

Page 19 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

7. INFRASTRUCTURE (Continued)

Movements in Carrying Amounts

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

Culverts Parks Street Tourist Road Esperance Roads Footpath Drainage & Pipes & Ovals Lighting Signs Airport Parking Other Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Total

Balance as at 1st July 2004 176,279,870 2,579,153 1,465,321 1,455,734 2,148,830 223,621 44,232 1,230,315 299,955 1,100,156 186,827,187

Additions 5,069,487 481,809 193,737 - 13,584 64,350 - 325,432 - 148,479 6,296,878

(Disposals) ------

Revaluation - Increments ------(Decrements) ------

Write-downs ------

Depreciation (Expense) (4,461,723) (119,106) (58,407) (112,653) (311,186) (9,015) (1,441) (43,981) (28,033) (36,526) (5,182,071)

Other Movements - 1 - (1) - (1) 1 - - - -

Balance as at 30 June 2005 176,887,634 2,941,857 1,600,651 1,343,080 1,851,228 278,955 42,792 1,511,766 271,922 1,212,109 187,941,994

Page 20 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2004 8. PAYABLES $ $

Current Sundry Creditors 1,030,276 1,158,227 Accrued Interest on Loans 8,263 9,539 Prepaid Contributions 51,000 2,273 Salaries & Wages 26,255 - Contract Retentions 19,496 - 1,135,290 1,170,039

9. INTEREST-BEARING LIABILITIES

Current Unsecured Bank Overdraft - 105,365

Secured by Floating Charge Debentures 75,150 103,718

75,150 209,083

Non-Current Secured by Floating Charge Debentures 534,351 567,056 534,351 567,056

Additional detail on borrowings is provided in Note 22.

10. PROVISIONS

Current Provision for Employee Recreation Leave 471,943 412,090 Provision for Employee Long Service Leave 82,041 55,053 553,984 467,143 Non-Current Provision for Employee Recreation Leave 272,585 208,552 Provision for Employee Long Service Leave 513,500 468,671 786,085 677,223

Page 21 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

11. RESERVES - Asset Revaluation (Non-Cash) 2005 2004 Actual Actual Asset revaluation reserves have arisen on $ $ revaluation of the following classes of assets:

(a) Land and Buildings Balance as at 1 July 2004 14,914,317 14,914,317 Revaluation Increment - - Revaluation Decrement - - Balance as at 30 June 2005 14,914,317 14,914,317

(b) Roads Balance as at 1 July 2004 89,470,833 89,470,833 Revaluation Increment - - Revaluation Decrement - - Balance as at 30 June 2005 89,470,833 89,470,833

TOTAL ASSET REVALUATION RESERVES 104,385,150 104,385,150

2005 2005 2004 Actual Budget Actual 12. RESERVES - Cash Backed $ $ $

(a) Land Purchase & Development Reserve Opening Balance 1 1 1 Amount Set Aside / Transfer to Reserve 1,851,345 1,554,144 - Amount Used / Transfer from Reserve (939,697) (540,847) - Closing Balance 911,649 1,013,298 1

(b) Council Buildings Construction Reserve Opening Balance 191,560 191,560 176,394 Amount Set Aside / Transfer to Reserve 103,759 102,078 29,814 Amount Used / Transfer from Reserve (116,764) (228,872) (14,648) Closing Balance 178,555 64,766 191,560

(c) Aged Persons Hostel Reserve Opening Balance 36,798 36,798 34,922 Amount Set Aside / Transfer to Reserve 1,948 1,840 1,876 Amount Used / Transfer from Reserve - - - Closing Balance 38,746 38,638 36,798

(d) Eastern Suburbs Water Pipeline Reserve Opening Balance 55,622 55,622 60,337 Amount Set Aside / Transfer to Reserve 14,556 9,677 3,242 Amount Used / Transfer from Reserve - - (7,957) Closing Balance 70,178 65,299 55,622

(e) Jetty Reserve Opening Balance 48,066 48,067 45,615 Amount Set Aside / Transfer to Reserve 29,284 2,403 2,451 Amount Used / Transfer from Reserve - - - Closing Balance 77,350 50,470 48,066

Page 22 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 12 RESERVES - CASH BACKED (Continued) Actual Budget Actual $ $ $ (f) Aerodrome Reserve Opening Balance 1,077,551 1,077,551 888,248 Amount Set Aside / Transfer to Reserve 350,920 201,219 280,997 Amount Used / Transfer from Reserve (392,898) (715,000) (91,694) Closing Balance 1,035,573 563,770 1,077,551

(g) Salmon Gums Quarry Reserve Opening Balance 8,431 8,431 12,417 Amount Set Aside / Transfer to Reserve 446 422 667 Amount Used / Transfer from Reserve (2,600) (4,094) (4,653) Closing Balance 6,277 4,759 8,431

(h) Municipal Museum Reserve Opening Balance 13,895 13,896 13,187 Amount Set Aside / Transfer to Reserve 1,462 695 708 Amount Used / Transfer from Reserve (5,147) (3,465) - Closing Balance 10,210 11,126 13,895

(i) Civic and Cultural Centre Reserve Opening Balance 181,782 181,783 95,388 Transfer to Reserve 6,684 9,089 99,303 Transfer from Reserve (188,466) (190,872) (12,909) Closing Balance - - 181,782

(j) Meat Inspection Services Reserve Opening Balance 40,844 40,844 39,770 Transfer to Reserve 23,584 2,042 2,136 Transfer from Reserve - (7,362) (1,062) Closing Balance 64,428 35,524 40,844

(k) Off Street Parking Reserve Opening Balance 10,468 10,468 9,934 Transfer to Reserve 554 523 534 Transfer from Reserve - - - Closing Balance 11,022 10,991 10,468

(l) Sanitation (Rubbish Removal) Services Opening Balance 162,134 162,134 129,710 Transfer to Reserve 157,195 109,703 145,833 Transfer from Reserve (6,982) (118,000) (113,409) Closing Balance 312,347 153,837 162,134

(m) HACC Programme Reserve Opening Balance 54,372 54,372 54,242 Transfer to Reserve 16,224 7,719 23,172 Transfer from Reserve (32,207) (40,779) (23,042) Closing Balance 38,389 21,312 54,372

(n) Caravan Park Sewerage Reserve Opening Balance - - 7,400 Transfer to Reserve - - 397 Transfer from Reserve - - (7,797) Closing Balance - - -

Page 23 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 12. RESERVES - CASH BACKED (continued) Actual Budget Actual $ $ $ (o) Gravel Resources Compensation Reserve Opening Balance 32,442 32,441 30,788 Transfer to Reserve 1,717 1,622 1,654 Transfer from Reserve - (16,345) - Closing Balance 34,159 17,718 32,442

(p) Southern Suburbs Water Supply Reserve Opening Balance 21,926 21,925 20,455 Transfer to Reserve 2,072 1,096 1,471 Transfer from Reserve - (650) - Closing Balance 23,998 22,371 21,926

(q) Cemetery Reserve Opening Balance 4,301 4,301 950 Transfer to Reserve 3,228 2,715 3,351 Transfer from Reserve - - - Closing Balance 7,529 7,016 4,301

(r) Unspent Grants & Contributions Opening Balance 445,416 445,416 336,180 Transfer to Reserve 282,540 - 356,278 Transfer from Reserve (445,416) (445,416) (247,042) Closing Balance 282,540 - 445,416

(s) Scaddan Hall Reserve Opening Balance - - 505 Transfer to Reserve - - 28 Transfer from Reserve - - (533) Closing Balance - - -

(t) Condingup Community Centre Reserve Opening Balance - - 669 Transfer to Reserve - - - Transfer from Reserve - - (669) Closing Balance - - -

(u) Historical Village Reserve Opening Balance 14,534 14,534 13,793 Transfer to Reserve 6,080 727 741 Transfer from Reserve - - - Closing Balance 20,614 15,261 14,534

(v) Plant Replacement Reserve Opening Balance 255,172 255,172 75,000 Transfer to Reserve 65,936 19,087 180,172 Transfer from Reserve (22,750) (40,750) - Closing Balance 298,358 233,509 255,172

Page 24 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 Actual Budget Actual 12. RESERVES - CASH BACKED (Continued) $ $ $

(w) Employee Entitlements- Annual Opening Balance 208,580 208,580 246,961 Transfer to Reserve 64,005 10,429 29,385 Trans. to Employee Entitlements- LSL Reserve - - (64,516) Transfer from Reserve - - (3,250) Closing Balance 272,585 219,009 208,580

(x) Employee Entitlements- Long Service Opening Balance 64,516 64,516 - Transfer to Reserve 90,265 23,226 84,516 Transfer from Reserve - - (20,000) Closing Balance 154,781 87,742 64,516

(y) History Book Reserve Opening Balance 5,342 5,342 3,873 Transfer to Reserve 2,052 1,017 1,469 Transfer from Reserve - - - Closing Balance 7,394 6,359 5,342

(z) Tanker Jetty Donations Reserve Opening Balance 6,350 6,349 4,971 Transfer to Reserve 1,785 1,717 1,379 Transfer from Reserve - - - Closing Balance 8,135 8,066 6,350

(aa) Library Reserve Opening Balance 8,849 8,850 6,221 Transfer to Reserve 2,418 2,346 2,628 Transfer from Reserve - - - Closing Balance 11,267 11,196 8,849

(ab) Bush Fire Plant Reserve Opening Balance 12,099 12,099 38,194 Transfer to Reserve 492 605 1,148 Transfer from Reserve (7,500) (7,500) (27,243) Closing Balance 5,091 5,204 12,099

(ac) Public Open Space Contributions Opening Balance 27,125 27,125 24,580 Transfer to Reserve 1,436 1,356 2,545 Transfer from Reserve - - - Closing Balance 28,561 28,481 27,125

(ad) Bay of Isles Leisure Centre Capital Reserve Opening Balance 80,364 80,363 77,805 Transfer to Reserve 2,954 4,018 4,179 Transfer from Reserve (83,318) (84,381) (1,620) Closing Balance - - 80,364

(ae) Lake Monjinup Reserve Opening Balance 1,114 1,114 - Transfer to Reserve 59 56 1,114 Transfer from Reserve (1,100) - - Closing Balance 73 1,170 1,114

Page 25 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 Actual Budget Actual 12. RESERVES - CASH BACKED (Continued) $ $ $

(af) Drainage Reserve Opening Balance 48,455 48,455 - Transfer to Reserve 2,565 2,423 48,455 Transfer from Reserve - - - Closing Balance 51,020 50,878 48,455

(ag) Building Maintenance Reserve Opening Balance 17,469 17,469 - Transfer to Reserve 5,975 873 17,469 Transfer from Reserve - - - Closing Balance 23,444 18,342 17,469

Total Cash Backed Reserves 3,984,273 2,766,112 3,135,578

All of the cash backed 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.

Summary of Transfers To Cash Backed Reserves Land Purchase & Development Reserve 1,851,345 1,554,144 - Council Buildings Construction Reserve 103,759 102,078 29,814 Aged Persons Hostel Reserve 1,948 1,840 1,876 Eastern Suburbs Water Pipeline Reserve 14,556 9,677 3,242 Jetty Reserve 29,284 2,403 2,451 Aerodrome Reserve 350,920 201,219 280,997 Salmon Gums Quarry Reserve 446 422 667 Municipal Museum Reserve 1,462 695 708 Civic and Cultural Centre Reserve 6,684 9,089 99,303 Meat Inspection Services Reserve 23,584 2,042 2,136 Off Street Parking Reserve 554 523 534 Sanitation (Rubbish Removal) Services 157,195 109,703 145,833 HACC Programme Reserve 16,224 7,719 23,172 Caravan Park Sewerage Reserve - - 397 Gravel Resources Compensation Reserve 1,717 1,622 1,654 Southern Suburbs Water Supply Reserve 2,072 1,096 1,471 Cemetery Reserve 3,228 2,715 3,351 Unspent Grants & Contributions 282,540 - 356,278 Scaddan Hall Reserve - - 28 Historical Village Reserve 6,080 727 741 Plant Replacement Reserve 65,936 19,087 180,172 Employee Entitlements- Annual Reserve 64,005 10,429 29,385 Employee Entitlements- Long Service Reserve 90,265 23,226 84,516 History Book Reserve 2,052 1,017 1,469 Tanker Jetty Donations Reserve 1,785 1,717 1,379 Library 2,418 2,346 2,628 Bush Fire Plant Reserve 492 605 1,148 Public Open Space Contributions 1,436 1,356 2,545 Leisure Centre Capital Reserve 2,954 4,018 4,179 Lake Monjinup Reserve 59 56 1,114 Drainage Reserve 2,565 2,423 48,455 Building Maintenance Reserve 5,975 873 17,469 3,093,540 2,074,867 1,329,112

Page 26 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 Actual Budget Actual 12. RESERVES - CASH BACKED (Continued) $ $ $

Summary of Transfers From Cash Backed Reserves Land Purchase & Development Reserve (939,697) (540,847) - Council Buildings Construction Reserve (116,764) (228,872) (14,648) Eastern Suburbs Water Pipeline - - (7,957) Aerodrome Reserve (392,898) (715,000) (91,694) Salmon Gums Quarry Reserve (2,600) (4,094) (4,653) Municipal Museum Reserve (5,147) (3,465) - Civic & Cultural Centre (188,466) (190,872) (12,909) Meat Inspection Reserve - (7,362) (1,062) Sanitation (Rubbish Removal) Services Reserve (6,982) (118,000) (113,409) HACC Programme Reserve (32,207) (40,779) (23,042) Caravan Park Sewerage - - (7,797) Gravel Resources Compensation Reserve - (16,345) - Southern Suburbs Water Supply Reserve - (650) - Unspent Grants & Contributions (445,416) (445,416) (247,042) Scaddan Hall Reserve - - (533) Condingup Community Centre Reserve - - (669) Plant Replacement Reserve (22,750) (40,750) - Employee Entitlements- Annual Reserve - - (67,766) Employee Entitlements- Long Service Reserve - - (20,000) Bush Fire Plant (7,500) (7,500) (27,243) Leisure Centre Reserve (83,318) (84,381) (1,620) Lake Monjingup Reserve (1,100) - - (2,244,845) (2,444,333) (642,044) Total Net Transfer to/(from) Reserves 848,695 (369,466) 687,068

All of the cash-backed 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 reserves are set aside are as follows:

Land Purchase & Development Reserve Established to fund land improvements and sub-division development. Funded by land sales.

Council Buildings Construction Reserve Established to provide a fund for the construction of new community facilities and upgrading of existing Council owned buildings. Funded from General Purpose Income.

Aged Persons Hostel Reserve Established to fund improvements to the frail aged hostel for the benefit of its inhabitants. Funded by a bequeath to be managed by the Shire Council.

East Suburbs Water Pipe Line Reserve Established to provide funds to recycle waste water to recreation grounds. Funded by the proceeds from the sale of water.

Jetty Reserve Established to provide funds for future maintenance and repair of the main jetty opposite Gladstone Street. Funded from General Purpose Income.

Aerodrome Reserve Established to fund future development and upgrades of the airport facility. Funded by the annual surplus derived from operation of the airport.

Page 27 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

12. RESERVES (Continued)

Salmon Gums Quarry Reserve Established to fund the rehabilitation of the Salmon Gums Quarry following exhaustion of its gravel reserves. Funded from General Purpose Income.

Municipal Museum Reserve Established to provide funds for future major repairs or renovations to the museum building. Funded from the annual surplus derived from museum entrance fees after expenses.

Civic & Cultural Centre Reserve Established to provide funds for improvements and major repairs to the Civic Centre. Funded from General Purpose Income.

Meat Inspection Reserve A contingency fund for the purpose of employing a meat inspector if the existing contracted meat inspection service failed to fulfil its obligations.

Off Street Parking Reserve Established to provide funds for the future development of central business car parking in order to make provisions for future business expansion of the CBD. Funded from General Purpose Income.

Sanitation (Rubbish Removal) Services Reserve Established to fund the purchase of major sanitation equipment and for the future development of waste disposal facilities. Funded from the annual surplus derived from property rubbish disposal/ collection fees after expenses.

HACC Program Reserve Established to retain unexpended income derived from the provision of Home and Community Care Services in Esperance. Contains the proceeds of fund raising activities, fees for service provision and unexpended Government grants held for future employment provisions liabilities – Long Service Leave.

Caravan Park Sewerage Reserve Established to provide funds for the installation and connection of sewerage to the Shire caravan park on the intersection of Norseman and Goldfields Roads anticipated during 1999/2000. Funded from General Purpose Income.

Gravel Resources Compensation Reserve Established for the purpose of paying compensation to land owners for damages and inconvenience. caused by Council accessing gravel supplies on private property under the provisions of the Local Government and Public Works Act Legislation. Also used to fund works provided by Council by agreement with the landowner in lieu of a compensation payment. Funded from General Purpose Income.

Southern Suburbs Water Supply Reserve Established to provide funds to recycle waste water to recreation grounds. Funded by the proceeds of the sale of water.

Cemetery Reserve Established to fund Maintenance at the Shire of Esperance Cemetery

Unspent Grants & Contributions Reserve Established for the purpose of containing funds that are derived from unspent or prepaid grants and contribution from external parties. Funded from external sources.

Scaddan Hall Reserve Contains the surplus of a self supporting loan raised to fund improvements.

Condingup Community Centre Reserve Contains the surplus of a self supporting loan raised to fund the construction of the Centre.

Page 28 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

12. RESERVES (Continued)

Historical Village Reserve Established to fund future improvements and major building repairs at the historical village. Funded from the surplus derived from on site property rentals after operating and maintenance expenses.

Plant Replacement Reserve Council’s Policy is to minimise and if possible eliminate any need to rely upon loan finance or unreasonable rate increases to finance the acquisition of major plant items. Funding is from the General Purpose Income. Amounts allocated will be re-assessed annually in response to revisions of the five year plant replacement program and the associated forward cost estimates.

Employee Entitlements- Annual Reserve Established be to fund future commitments for employee entitlements incurred by the Council as a result of employing staff and workers in relation to Annual/Recreation leave. Funded by general purpose income and grant funds.

Employee Entitlements- Long Service Reserve The purpose of this Reserve is to fund a portion of future commitments for employee entitlements incurred as a result of employing staff and workers in relation to Long Service Leave.

History Book Reserve Established to accumulate the proceeds from the sale of the Shire of Esperance history book. The accumulated funds are intended to offset future printing costs of the history book.

Tanker Jetty Donations Reserve Established to accumulate donated funds for the restoration and maintenance of the tanker jetty.

Library Reserve Established to hold the net proceeds from computer user charges at the Library to be used for the future replacement and improvement of computer facilities to the general public.

Bush Fire Plant Reserve Established to hold funds for the future purchase of capital plant and equipment for the use and benefit of the Volunteer Bush Fire Brigades within the Esperance district.

Public Open Space Contributions Established to hold funds provided by developers to the Council for the purpose of provision of public open space in the future.

Bay of Isles Leisure Centre Capital Reserve Established to hold funds for future capital improvements at the Bay of Isles Leisure Centre

Lake Monjingup Fundraising Reserve Established to hold the proceeds of fundraising that is used specifically on works at the Lake Monjungup Reserve

Drainage Contributions Reserve Established to hold contributions made to the Council by Developers for the establishment of Drainage within the Esperance District.

Building Maintenance Reserve Established to hold unexpended funds from the Building Maintenance Program for the use of building maintenance and refurbishment of Council buildings.

Expected Usage The Land Purchase & Development Reserve is expected to be used to fund the development of Stage 2 at Flinders and help fund the Industrial Park Development. The Aerodrome Reserve is expected to be used to fund the extention of the Esperance Aerodrome Landing Strip. The Bush Fire Plant Reserve is expected to be fully utilised in the 2005/06 financial year to fund a contribution towards a radio mast on Beltana Road. The remaining Reserves are not expected to be utilised within the foreseeable future or are dependant upon a third party to initiate action.

Page 29 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

13. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments, 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: 2005 2005 2004 Actual Budget Actual $ $ $ Cash Assets 4,857,914 2,816,112 3,147,866

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

Net Profit or Loss/Result 2,286,202 1,441,750 1,709,867

Depreciation 6,984,994 6,762,744 6,705,979 (Increase)/Decrease in Receivables 851,752 995,470 (1,132,025) (Profit)/Loss on Sale of Asset 58,275 (74,531) 90,552 (Increase)/Decrease in Inventories 654,632 681,854 (706,673) Increase/(Decrease) in Payables (162,551) (201,456) 352,018 Increase/(Decrease) in Employee Provisions 195,703 - 120,566 Grants/Contributions for the Development of Assets (2,566,511) (3,234,823) (2,644,432) Net Cash from Operating Activities 8,302,496 6,371,008 4,495,852

(c) Credit Standby Arrangements Bank Overdraft limit 400,000 400,000 400,000 Bank Overdraft at Balance Date - - - Credit Card Facility 31,000 24,000 31,000 Credit Card Balance at Balance Date 3,236 - 4,022 Total Amount of Credit Unused 434,236 424,000 435,022

(d) Borrowing Facilities Loan Facilities - Current 75,150 103,718 Loan Facilities - Non-Current 534,351 567,056 Total Facilities in Use at Balance Date 609,501 670,774 Un-used Loan Facilities at Balance Date - -

Page 30 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2004 Actual Actual 14. CAPITAL AND LEASING COMMITMENTS $ $

(a) Finance Leasing and Hire Purchase Commitments

The Shire of Esperance has no finance leasing or hire purchase commitments in the future

(b) Operating Lease Commitments

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

Payable: - not later than one year 105,974 83,601 - later than one year but not later than five years 103,224 49,636 - later than five years - - 209,198 133,237

Capital expenditure commitments that have been contracted for as at the reporting date which have not been recognised as liablilities in the statement of financial position is as follows: 2005 2004 Actual Actual $ $ Contracted For: - Capital Expenditure Projects Bay of Isles Leisure Centre Re-tiling - 155,880 Civic Centre Air-conditioning - 211,245 - 367,125

Payable: - not later than one year - 367,125

15. CONTINGENT LIABILITIES

The Shire of Esperance is unaware of any contingent liabilities at the current reporting date.

Page 31 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

16. JOINT VENTURE AND MAJOR LAND TRANSACTION

Shark Lake Industrial Park a) Details The Shire of Esperance did participate in a joint venture with the Esperance Port Authority for the purchase and development of the Shark Lake Industrial Park during the reporting period that requires disclosure in accordance with the Australian Accounting Standards. The Shire of Esperance and Esperance Port Authority entered into a 50/50 joint venture for the purchase of location 1044 Shark Lake Road Monjingup. The purpose of the land is to develop an Industrial Park The following transactions are those in which the Shire of Esperance has an interest.

b) Current Year Transactions 2005 Actual Capital Income $ Transfer from Land Development Reserve 837,500 Capital Expense Industrial Park Land Purchase (837,500) Industrial Park Land Development (4,744) (4,744) Operating Income Port Authrity & Other Contributions 26,549 Housing Rent 1,081 Lease of Land- Grazing 5,667 Transfer from Unspent Grants Reserve 15,000 Operating Expense Employment Expenses (24,392) Advertising & Promotions (1,281) Consultants Fees (60,438) Planning & Rezoning (6,126) Land Option Fees (12,062) Printing & Office Supplies (1,545) Land Maintenance (150) Administration Allocation (57,407) Nett Operating Income/(Expense) (115,104)

c) Expected Future Cash Flows 2006 Budget Capital Cash Inflows $ Loan Borrowings 500,000 State & Federal Government Grants 1,550,000 Contributions from Esperance Port Authority 500,000 Land Sales 1,030,000 Capital Cash Outflows Land Purchase (30,000) Land Development Costs (3,275,000) Transfer to Land Development Reserve (275,000) Nett Capital Cash Flows 0

Operating Cash Inflows Contributions from Esperance Port Authority 26,125 Lease of Land & Housing Rent 34,250 Operating Cash Outflows Employment Expenses (34,631) Advertising & Promotion (2,500) Planning & Rezoning (5,000) Printing & Office Supplies (1,500) Insurance (155) Building Maintenance (5,425) Land Maintenance (10,000) Administration Allocation (88,834) Nett Operating Cash Inflows/(Outflows) (87,670)

Page 32 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY 2005 2004 Governance Actual Actual 17. General Purpose Funding $ $ Law, Order, Public Safety Health - - Education and Welfare 3,725,683 275,227 Housing 995,554 962,244 Community Amenities 78,148 46,536 Recreation and Culture 2,682,770 2,584,229 Transport - - Economic Services 1,347,445 1,254,966 Other Property and Services 20,350,916 20,923,777 Unallocated 194,826,504 192,906,930 222,735 243,054 1,550,113 2,503,467 FINANCIAL RATIOS 3,196,415 4,995,335 228,976,283 226,695,765

18. 2005 2004 2003

Current Ratio 1.38 1.66 1.65 Untied Cash to Trade Creditors Ratio 0.85 0.01 0.89 Debt Ratio 0.01 0.01 0.01 Debt Service Ratio 0.01 0.02 0.02 Gross Debt to Revenue Ratio 0.03 0.03 0.05 Gross Debt to Economically Realisable Ratio 0.01 0.02 0.02 Rate Coverage Ratio 0.34 0.35 0.36 Outstanding Rates Ratio 0.03 0.03 0.03

The above rates are calculated as follows:

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

Untied Cash to Trade Creditors Ratio Untied Cash Unpaid Trade Creditors

Debt Ratio equals Total liabilities Total assets

Debt Service Ratio equals Debt Service Cost (Principal & Interest) Available operating revenue

Gross Debt to Revenue Ratio Gross Debt Total revenue

Gross Debt to Economically Realisable Ratio Gross Debt Economically realisable assets

Rate Coverage Ratio equals Net rate revenue Operating revenue

Outstanding Rates Ratio equals Rates outstanding Rates collectable

Page 33 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

19. TRUST FUNDS

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

Balance Amounts Amounts Balance 1-Jul-04 Received Paid 30-Jun-05 Details $ $ ($) $ Proceeds of Land Sales - Rates Recovery 2,747 - - 2,747 Town Planning Development Bonds 46,056 3,109 - 49,165 Caravan Park Lease Bonds 33,895 2,287 36,182 Recreation Grounds Bonds 200 - (200) - Emergency Services Fund 828 - (828) - Tidy Towns Committee 3,614 - 3,614 Quiet Lion Tour Committee 248 248 Dept. Transport Licensing Agency 67,032 7,891,989 (7,844,392) 114,629 Air BP Fuel Agency 7,257 101,387 (98,868) 9,776 Fundraising for Tom King - 150 150 Builders Reinstatement Bonds 32,100 23,000 (34,600) 20,500 BCITF Levy 811 40,175 (40,832) 154 Nomination Deposits - - Staff Housing Bonds 2,692 3,422 (1,973) 4,141 Function Centre Bonds 100 100 Subdivision Bonds 6,256 423 6,679 Gymnasium Key Bond 425 425 Builders Reg. Board Levy 660 8,220 (8,250) 630 Engineering Sub-division Bonds 15,304 136,768 (26,821) 125,251 Other 6,270 21,132 (3,403) 23,999 Commercial Building Bonds 693 324 (285) 732 Senior Citizens Bonds * (300) 625 (325) - 226,888 8,233,011 (8,060,777) 399,122

* Senior Citizens Bonds has a negative amount as at 1st July due to an overpayment of a bond. The amount has since been reimbursed to the Shire of Esperance.

20. DISPOSALS OF ASSETS (2004-05 FINANCIAL YEAR)

The following assets were disposed of during the year.

Net Book Value Sale Price Profit (Loss) Actual Budget Actual Budget Actual Budget $ $ $ $ $ $ Buildings 110,916 - - - (110,916) - Other Plant and Equipment 4,410 - 750 - (3,660) - Other Furniture & Equipment 100 - - - (100) - Motor Vehicles 519,847 519,112 473,818 461,500 (46,029) (57,612) Plant & Machinery 410,550 398,857 512,980 531,000 102,430 132,143 1,045,823 917,969 987,548 992,500 (58,275) 74,531

2005 2005 Actual Budget Summary $ $ Profit on Asset Disposals 155,864 184,316 Loss on Asset Disposals (214,139) (109,785) (58,275) 74,531

Page 34 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

21. BUDGET COMPARISON (FUNDING BASIS)

(a) Non Operating Income and Expenditure

The following is a comparison of capital income and expenditure and movements to and from reserve 2005 2005 2004 accounts and the amounts contained in the Actual Budget Actual Rate Setting Statement in the annual budget. $ $ $

Non Operating Income Proceeds on sale of assets 987,548 992,500 854,534 Debentures raised 60,000 1,380,000 30,000 Repayments of self supporting loans 101,170 93,214 113,799 Transfers from Reserves 2,244,845 2,444,333 577,528 3,393,563 4,910,047 1,575,861

Non Operating Expenditure Advances to Community Groups (60,000) (480,000) (30,000) Principal repayment of Debentures (121,273) (121,486) (209,946) Construction/Purchase of Assets Land Held for Resale - - - Land and Buildings (1,501,462) (2,008,510) (160,536) Furniture & Equipment (41,462) (99,160) (51,388) Plant, Vehicles and Equipment (2,210,190) (2,095,550) (2,108,119) Infrastructure Roads (5,157,402) (5,776,100) (4,738,690) Infrastructure Other (1,237,502) (1,718,307) (862,266) Transfers to Reserves (3,093,540) (2,074,867) (1,264,596) (13,422,831) (14,373,980) (9,425,541)

(b) Current Position at 1st July 2004

The current position balance carried forward from the previous financial year for the purpose of the 2004-05 budget was $ 1,227,145

The actual current position balance shown in the audited financial report as at 30th June 2004 was $ 1,205,294

This difference amounts to $176,591 and was primarily due to adjustments arising from the finalisation of the financial results for the 2003/04 financial year.

Page 35 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

22. INFORMATION ON BORROWINGS (a) Debenture Repayments Borrowing Interest Maturity Principal New Interest Repayments Principal Principal Institution Rate Date 1-Jul-04 Loans Repayments 30-Jun-05 Particulars % Actual Budget Actual Budget Actual Budget Education & Welfare Esperance Aged Care Facility * - - 5,446 - 6,753 - 473,247 Recreation & Culture Loan 244 - Netball C/Rooms * WATC 7.52 10/07 6,198 391 391 1,609 1,609 4,589 4,590 Loan 252- Squash Courts * WATC 7.08 12/03 - - 48 - - - - Loan 257 - Sporting Club * WATC 9.95 07/04 1,940 - - 1,940 1,940 - - Loan 261 - Pink Lake Country Club * WATC 6.65 07/22 264,592 17,291 17,294 7,735 7,735 256,857 256,857 Loan 262 - Esp. Surf Club * WATC 8.95 01/11 24,415 2,010 2,010 2,772 2,772 21,643 21,643 Loan 263 - Esp. Tennis Club * ANZ 9.25 12/05 8,524 564 564 5,553 5,554 2,971 2,971 Loan 264 - Esp. Yacht Club * WATC 8.50 10/05 14,543 730 729 9,492 9,492 5,051 5,051 Loan 265 - Esp. Indoor Sport * WATC 8.39 04/07 73,005 5,862 5,981 6,724 6,725 66,281 66,280 Loan 268 - Esp. Kart Club * WATC 6.20 01/08 17,915 958 957 4,383 4,383 13,532 13,530 Loan 269 - Esp. Speedway * WATC 5.74 10/08 13,018 660 660 2,612 2,612 10,406 10,406 Loan 270 - Condingup Rec * WATC 5.35 09/08 25,523 1,229 1,232 5,498 5,498 20,025 20,026 Loan 271 - Newtown Lighting * WATC 6.03 04/09 28,712 1,549 1,549 5,077 5,077 23,635 23,636 Loan 273- Esp. Cricket Club * WATC 7.11 03/10 6,812 450 450 947 947 5,865 5,865 Loan 274 - Esp. Golf Club * WATC 7.50 03/10 53,051 3,761 3,761 7,677 7,677 45,374 45,373 Loan 276 - Gibson Football * WATC 6.94 05/10 20,398 1,810 1,326 20,398 2,843 - 17,555 Loan 277 - Esp. Yacht Club * WATC 6.78 07/10 54,203 3,343 3,344 6,889 6,889 47,314 47,314 Loan 281- Esp. Speedway * WATC 5.67 10/08 27,366 1,367 1,367 5,497 5,497 21,869 21,869 Loan 282- Cascade Rec Assoc * WATC 5.81 06/25 - 60,000 86 - - 60,000 Transport Loan 279 - Plant WATC 5.74 09/04 17,258 207 207 17,258 17,258 - - Economic Services Loan 278 - Esp. Tourist Bureau * WATC 4.95 09/04 1,336 16 17 1,336 1,336 - - Loan 280 - Chamber of Comm. * WATC 5.11 11/05 11,965 473 472 7,876 7,876 4,089 4,089 Other Property & Services Shark Lake Industrial Park - - 29,834 - 11,013 - 888,987 670,774 60,000 42,757 77,639 121,273 121,486 609,501 1,929,289 Funding of Borrowings All loan repayments were FUNDED by general purpose income. Those loans denoted with a "*" are the subject of a repayment agreement that secured the reimbursement from a community organisation of all costs associated with the loan. (WATC - WA Treasury Corporation)

Page 36 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

22. INFORMATION ON BORROWINGS (CONTINUED)

(b) New Borrowings - 2004-05

Amount Borrowed Institution Loan Term Total Interest Amount Used Balance $ Type (Years) Interest & Rate$ Unspent Particulars/Purpose Actual Budget Charges % Actual Budget $ Loan 282 - Cascade Rec. Assoc. * 60,000 - WATC Debenture 20 42,873 5.81 60,000 - - 60,000 - 42,873 60,000 - -

As at the reporting date, the Shire of Esperance did not hold any amount of unspent loan funds.

(d) Overdraft

Council established an overdraft facility of $400,000 to assist with short term liquidity requirements. The extent of the bank overdraft at 1 July 2004 was $105,365 and at 30 June 2005 was nil.

(e) Interest Rate Risk Council's exposure to interest rate risk as a result of borrowings and the effective weighted average interest rate on these borrowings is as follows:

2005 2004 Borrowings $ $

Fixed interest rate maturing - not later than one year 12,111 20,534 - later than one year but not later than five years 211,575 226,770 - later than five years 385,814 423,470 Non interest bearing - - Total Borrowings 609,501 670,774

Weighted average effective interest rate 6.81% 6.91%

Page 37 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

23. RATING INFORMATION - 2004-05 FINANCIAL YEAR

Rate in Number Rateable Rate Interim Back Total Budget Budget Budget Budget dollar of Value Revenue Rates Rates Revenue Rate Interim Back Total RATE TYPE Properties Actual Revenue Rate Rate Revenue General Rate GRV - Residential 0.075755 3,078 26,162,570 1,981,946 31,255 - 2,013,201 1,980,480 13,246 - 1,993,726 GRV - Comm/Industrial 0.075755 378 12,859,533 974,174 116,494 - 1,090,668 970,163 2,500 - 972,663 GRV - Regional Townships 0.075755 12 151,684 11,491 - - 11,491 11,491 - - 11,491 UV - Rural 0.017101 1,169 199,942,000 3,419,208 5,560 - 3,424,768 3,420,738 10,046 - 3,430,784 UV - Mining 0.017101 11 571,764 9,778 - - 9,778 9,672 - - 9,672 UV - Commercial Industrial 0.017101 5 335,500 5,737 593 - 6,330 5,737 - - 5,737 Sub-Totals 4,653 240,023,051 6,402,334 153,902 - 6,556,236 6,398,281 25,792 - 6,424,073 Minimum Minimum Rates $ GRV - Residential 472.00 1,616 7,709,402 762,752 6,971 - 769,723 763,696 - - 763,696 GRV - Residential (lesser Min) 236.00 88 20,200 20,768 (962) - 19,806 20,768 - - 20,768 GRV - Comm/Industrial 472.00 91 413,774 42,952 707 - 43,659 42,480 - - 42,480 GRV - Regional Townships 472.00 180 578,163 84,960 (472) - 84,488 84,960 - - 84,960 UV - Rural 236.00 15 24,200 3,540 - - 3,540 3,540 - - 3,540 UV - Mining 236.00 24 71,056 5,664 1,621 - 7,285 5,664 - - 5,664 UV - Commercial/Industrial 236.00 2 5,400 472 - - 472 472 - - 472 Sub-Totals 2,016 8,822,195 921,108 7,865 - 928,973 921,580 - - 921,580 7,485,209 7,345,653 Less Discounts (refer note 25) (254,563) (257,500) Totals 7,230,646 7,088,153

Page 38 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

24. EMPLOYEES REMUNERATION

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

Details Salary Band $ 2005 2004 Administration Regulations (19B) $100,000 - $109,999 - - $110,000 - $119,999 - - $120,000 - $129,999 - - $130,000 - $139,999 1 1

25. DISCOUNTS, INCENTIVES, CONCESSIONS & WRITE-OFFS (2004-05 FINANCIAL YEAR) Type Disc % Total Budget Cost/ Cost/ (a) Discounts Value Value General Rates Discount 5.00 254,563 257,500

A discount on rates is granted to all who pay their rates in full within 35 days of the date of service appearing on the rate notice.

Total Budget Cost/ Cost/ (b) Write-Offs Value Value General Debtors 3,196 - Rate Assessments 0 - 3,196

(c) Waivers A waiver of rates in relation to commercial leases entered into with tenants of the Museum Village Park has been granted. This waiver is granted as part of a tenancy lease negotiated with each tenant.

(d) Concessions The Council offers those residents who hold a current valid seniors concession card, a concession in respect of the following services: (I) Rubbish Collection Services, 50% of the normal fee applicable. (II) Dog registration fees, 50% of the normal fee applicable. (III) Various concessions on user charges at the Bay of Isles Leisure Centre (see below)

A concession of $38.50 is offered to Schools using the Shire Civic Centre for conventions, meeting and prize nights etc. on those fees normally charged.

Concessions of various fees are offered to holders of student cards, health care cards and pensioner cards. These concessions are available on pool/spa/sauna entry, health and fitness memberships to the gymnasium, aquatic area or whole complex, health and fitness classes and sport hall hire. These concessions are available only upon presentation of a relevant card and are offered to make the Bay of Isles Leisure Centre financially accessible to everyone in the community.

Page 39 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

26. INTEREST CHARGES AND INSTALMENTS (2004-05 FINANCIAL YEAR)

Interest Admin. Revenue Budgeted Rate (%) Charge Revenue $ $ $ Interest on Unpaid Rates (note 2a) 9.00% - 33,152 25,000 Interest on Instalments Plan (note 2a) 5.50% - 18,771 16,000 Charges on Instalment Plan - 15 16,928 14,000 68,851 55,000

Ratepayers had the option of paying rates in four equal instalments, due on 28th September 2004, 30th November 2004, 1st February 2005 and 5th April 2005. Administration charges ($5 each instalment) and interest were applied on the final three instalments.

2005 2005 2004 Actual Budget Actual 27. FEES & CHARGES $ $ $

Governance 16,234 15,200 17,750 General Purpose Funding 16,928 15,300 14,936 Law, Order, Public Safety 34,662 31,210 34,937 Health 179,391 145,700 142,388 Education & Welfare 155,789 175,890 142,163 Housing - - - Community Amenities 1,349,107 1,233,712 1,242,278 Recreation & Culture 703,799 714,938 705,929 Transport 681,725 561,645 600,715 Economic Services 211,147 201,774 190,594 Other Property & Services * 2,582,759 1,905,079 1,423,758 5,931,541 5,000,448 4,515,448

* Income from the sale of 21 residential blocks to the value of $ 1,891,419 have been recognised as fees and charges.

28. GRANT REVENUE 2005 2004 Actual Actual $ $ (a) By Nature/Type: Grants and Subsidies - operating 4,701,883 4,631,548 Grants and Subsidies - non-operating 2,869,593 2,624,056 7,571,476 7,255,604 (b) By Reporting Program: General Purpose Funding 3,311,845 3,285,256 Governance 10,000 - Law, Order, Public Safety 193,025 309,183 Health - - Education & Welfare 985,952 1,125,536 Community Amenities 108,137 37,428 Recreation and Culture 100,684 60,300 Transport 2,761,943 2,245,527 Other Property & Services 99,890 192,374 7,571,476 7,255,604

Page 40 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

2005 2005 2004 29. COUNCILLORS’ REMUNERATION Actual Budget Actual $ $ $ The following fees, expenses and allowances were paid to council members and/or the president.

Meeting Fees 53,900 57,400 54,863 President’s Allowance 12,000 12,000 11,000 Deputy President's Allowance 3,500 3,500 2,750 Travelling Expenses 14,394 18,500 17,679 Telecommunications Allowance 15,719 18,000 17,893 99,513 109,400 104,185

Page 41 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

30. MAJOR LAND TRANSACTIONS

Flinders Residential Subdivision

a) Details

The Council owns land, freehold at East Location 18, Lot 3 which is bounded by Ormonde Street and Goldfields Road. During the 2003/04 year Council created 33 blocks from part of Lot 3. These blocks are suitable for residential dwellings and have frontage onto Ormonde Street. Twelve of the residential blocks were sold by public auction during 2003/04 and the remaing twenty one sold by public auction during the 2004/05 financial year. Provided planning approval can be obtained, it is anticipated that a further 50 lot residential subdivision will be developed during the 2005/06 financial year. On a historical cost basis, the value of the land on which the 33 blocks were developed was $12,926

b) Current Year Transactions 2005 Actual Operating Income $ Proceeds from Sale of Land 1,891,419 Transfer from Reserve 51,339 Operating Expense Salaries and Wages (2,110) Selling Costs (145,700) Feasibility Approval Studies (58,707) Resale of Land Expense (8,226) Development Expenses (678,512) Engineering Allocation (27,000) Administration Allocation (27,617) 994,886

The Development expenses and Land expense has been proportioned based upon the sale of twenty one blocks. There are no liabilities in relation to this land transaction as at the 30 June 2005.

c) Expected Future Cash Flows 2006 Cash Inflows $ Loan Borrowings 1,050,000 Transfer In from Reserve 1,175,500 2,225,500 Cash Outflows Feasibility Approval Studies (150,000) Printing & Stationary (500) Landscaping Incentive (45,000) Development Expenses (2,000,000) Engineering Allocation (30,000) Administration Allocation (31,505) (2,257,005)

Net Cash Flows (31,505)

Page 42 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

31. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Esperance Aerodrome Council's objective is to maintain a safe landing airstrip and functional airport amenities conducive to the promotion of the district as a tourist and business destination. Operating costs are met by landing fees charged. Annual surpluses are transferred to reserve funds to finance future improvements to the facility. 2005 2005 2004 Actual Budget Actual $ $ $ (a) Operating Statement Operating Revenues Passenger Landing Fees 461,144 350,000 389,730 Commissions Fuel Agency 15,476 13,908 14,918 Rentals 11,565 12,084 11,998 Other Sundry Income 435 513 394 Reimbursement Operating Expenses 5,015 2,572 2,482 493,635 379,077 419,522 Less Operating Expenses Employee Expenses 101,346 119,861 98,245 Insurance 15,645 15,645 15,618 Building Expenses 4,281 12,614 9,670 Grounds & Strip Maintenance 46,335 43,050 37,401 Fuel Agency Expense 4,647 5,152 4,647 Marketing - 5,000 - Loss on Asset Disposal - - 2,958 Administration Overheads 21,961 22,201 20,538 Depreciation 80,519 85,350 80,993 Other 27,026 29,660 16,687 301,760 338,533 286,757

OPERATING RESULT 191,875 40,544 132,765

(b) Non-Operating Income & Expenditure Actual Budget Actual $ $ $ Capital Revenue Grants & Subsidies - 195,000 - Transfer From Reserve Fund 392,898 715,000 91,694 392,898 910,000 91,694 Less Capital Expenditure Infrastructure 325,432 835,000 1,315 Plant & Equipment 7,466 15,000 Motor Vehicles - - 30,379 Transfers to Cash Reserves 294,356 148,095 234,297 627,254 998,095 265,991

TOTAL NET TRADING UNDERTAKING (42,481) (47,551) (41,532)

Page 43 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

31. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS (continued)

Esperance Aerodrome (Continued) 2005 2004 Actual Actual (c) Financial Position $ $

CURRENT ASSETS Cash Assets 1,045,878 1,084,950 Receivables 168,848 69,197 TOTAL CURRENT ASSETS 1,214,726 1,154,147

NON-CURRENT ASSETS Property Plant and Equipment 1,081,102 1,112,548 Infrastructure 1,528,434 1,247,566 TOTAL NON CURRENT ASSETS 2,609,536 2,360,114

TOTAL ASSETS 3,824,262 3,514,261

CURRENT LIABILITIES Payables (Creditors and Wages Payable) 2,183 3,861 Provisions (Recreation Leave) 4,955 4,864 TOTAL CURRENT LIABILITIES 7,138 8,725

NON CURRENT LIABILITIES Provisions (Employee Entitlements) 18,165 13,907 TOTAL NON CURRENT LIABILITIES 18,165 13,907

NET ASSETS 3,798,959 3,491,629

EQUITY Accumulated Surplus 2,431,335 2,082,027 Revaluation Reserve - Non Cash 332,051 332,051 Reserves - Cash Backed 1,035,573 1,077,551 TOTAL EQUITY 3,798,959 3,491,629

32. EMPLOYEE NUMBERS 2005 2004 2003

The number of full-time equivalent employees at balance date. 155 149 147

33. ECONOMIC DEPENDENCY

A significant portion of revenue is received by way of grants from the State and Federal Government. The total of grant revenue from government sources is disclosed in Note 28.

Page 44 Shire of Esperance Notes to and forming part of the Annual Financial Report Financial Report For the year ending 30th June 2005 2004-05

34 CONDITIONS OVER CONTRIBUTIONS 2004 2005 Opening Recognised Spent Closing Opening Recognised Spent Transferred Remaining Balance $ as Revenue $ or Used $ Balance $ Balance $ as Revenue $ or Used $ To Reserves Restricted $ 1/07/2003 (1) 30/06/2004 (2) 1/07/2004 (1) (2) 30/06/2005 Governance Grant- Young Indigenous Scholarship - - - - - 10,000.00 - 10,000.00 - Law, Order & Public Safety Grant- FESA Operating Subsidy (Fire) - 23,489.00 - 23,489.00 23,489.00 - (15,515.00) 7,974.00 - Contribution- Wild Dog Control - 11,157.00 - 11,157.00 11,157.00 10,850.00 (14,657.00) 7,350.00 - Education & Welfare Grant- Senior Citizens Lottery Grant - 2,176.00 - 2,176.00 2,176.00 - (516.00) 1,660.00 - Grant - Home & Community Care (HACC) Seniors Expo 2,000.00 - (2,000.00) ------Grant - HACC Seniors Leisure Link 4,000.00 - - 4,000.00 4,000.00 - - 4,000.00 - Grant - HACC Grant for Second Bus - 96,221.00 - 96,221.00 96,221.00 - (96,221.00) - - Grant - HACC Building Grant - 92,500.00 - 92,500.00 92,500.00 - (760.00) 91,740.00 - Grant - HACC Building Furnishings - - - - - 18,735.00 - 18,735.00 - Grant - HACC Security System - - - - - 994.00 - 994.00 - Grant - HACC Storage Upgrade - - - - - 4,311.00 - 4,311.00 - Grant- Disability Equipment Lotteries - 4,730.00 - 4,730.00 4,730.00 - (4,730.00) - - Grant- Hearing Impared Pilot Project - - - - - 5,840.00 (5.00) 5,835.00 - Grant - HACC Office Equipment 7,949.00 - (7,949.00) ------Grant- DVA - - - - - 34,508.00 (30,073.00) 4,435.00 - Grant- Redcross - - - - - 13,162.00 (11,211.00) 1,951.00 - Grant- CVS - - - - - 1,188.00 - 1,188.00 - Grant- VMP CPO - - - - - 16,218.00 - 16,218.00 - Grant - Volunteer Management Program (VMP) (03/04) - 2,549.00 - 2,549.00 2,549.00 - - 2,549.00 - Grant - Volunteer Management Program (VMP) (02/03) 26,826.00 - (26,826.00) ------Grant - VMP (01/02) 2,877.00 - (2,877.00) ------Grant - Youth Advisory Council (YAC) 1,200.00 - (1,200.00) ------Contributions - YAC (Hype Donations) 1,100.00 - - 1,100.00 1,100.00 - (1,100.00) - - Grant - NRCP 1,378.00 4,912.00 (1,378.00) 4,912.00 4,912.00 - (4,912.00) - - Grant- Community Visitor Scheme - 1,400.00 - 1,400.00 1,400.00 - (1,400.00) - - Grant - CACP 15,200.00 - (15,200.00) ------Community Amenities Grant- Bag Smart - - - - - 2,500.00 (1,371.00) 1,129.00 - Grant- SCRIPT Wharton Beach Rota Loo - - - - - 7,000.00 (5,102.00) 1,898.00 - Grant - Regional Area Planning 30,000.00 31,500.00 (30,000.00) 31,500.00 31,500.00 - (31,500.00) - - Contributions - Urban Drainage 3,204.00 - (3,204.00) ------Grant - Oil Waste Disposal 62,537.00 8,643.00 (62,537.00) 8,643.00 8,643.00 - (8,643.00) - - Recreation & Culture Grant- PAWG 10,000 Steps BOILC - - - - - 9,900.00 - 9,900.00 - Grant- ILC WA- BOILC - - - - - 17,250.00 - 17,250.00 - Contribution - BMX 1,462.00 - (1,462.00) ------Contribution - Bandy Creek Fish Cleaning Station - 2,680.00 - 2,680.00 2,680.00 4,091.00 - 6,771.00 - Contribution - POS Recreation 1,225.00 - (1,225.00) ------Grant- Nestle Write Around Australia - - - - - 800.00 (133.00) 667.00 - Grant - Esperance Society Lotterywest Grant - 3,280.00 - 3,280.00 3,280.00 - (2,880.00) 400.00 - Grant - Esperance Bay Historical Society 8,655.00 6,812.00 (8,655.00) 6,812.00 6,812.00 - (2,932.00) 3,880.00 - Contribution - Salmon Beach Windfarm 40,000.00 - - 40,000.00 40,000.00 - (13,842.00) 26,158.00 - Contribution - Museum Steam Crane - 3,535.00 - 3,535.00 3,535.00 - (3,535.00) - - Contribution- Esperance Community College - - - - - 39,000.00 (32,839.00) 6,161.00 - Transport Grant - Roads to Recovery 56,771.00 69,732.00 (56,771.00) 69,732.00 69,732.00 - (69,732.00) - - Contribution CALM- Skippy Rock Rd - 20,000.00 - 20,000.00 20,000.00 - (20,000.00) - - Grant- Blackspot Funding- Dempster/Brazier - - - - - 3,500.00 - 3,500.00 - Grant- Blackspot Funding- Coolingup/Lane - - - - - 5,000.00 - 5,000.00 - Grant- Blackspot Funding- Neds/Griffith - - - - - 7,000.00 - 7,000.00 - Contribution to Future Drainage (Lot 16 Harbour Road) 40,727.00 - (40,727.00) ------Contribution to Future Drainage (Effie Turner Dr.) 4,524.00 - (4,524.00) ------Other Property & Services Grant - Industrial Park Development - 15,000.00 - 15,000.00 15,000.00 - (15,000.00) - - Contribution- New Apprenticeship Training Fund - - - - - 52,750.00 (38,864.00) 13,886.00 - Contribution to Networking the Nation Project 24,545.45 - (24,545.45) ------336,180.45 400,316.00 (291,080.45) 445,416.00 445,416.00 264,597.00 (427,473.00) 282,540.00 - Notes (1) Contributions which were recognised as revenues in the previous reporting periods and which were expended in the current reporting period in the manner specified by the contributor. (2) Contributions which were recognised as revenues during the reporting period and which had not yet been expended in the manner specified by the contributor.

45 Shire of Esperance