Annual Budget

Annual Budget

2016-17

Annual Budget 2016-17

Thursday, 23 June, 2016

TABLE of CONTENTS

Introduction

Page

Mayor's Introduction

4

Elected Members and Executive Leadership Team

5

Budget Certification

6

Our City

7

Consultation and Engagement

8

Our Planning Framework

9

Vision

10

Our Core Services

10

Service Delivery

10

Executive Summary

11

Financial Summaries

Statement of Comprehensive Income by Nature and Type

21

Statement of Comprehensive Income by Program

23

Rate Setting Statement

25

Statement of Net Current Assets

27

Statement of Financial Position

29

Statement of Cash Flows

31

Cash Back Reserves

33

Projects Funded from Reserves

40

Annual Budget 2016-17

Mayor's introduction to the 2016-17 Budget

I have great pleasure in commending the 2016-17 budget to you. The Council believes a 3% rate increase

in today's enconomic climate balances the continuing increase in service delivery costs and community

expectations with the financial capacity of our ratepayers.

We acknowledge that asset maintenance and replacement is an ongoing requirement and have allocated

$9.6 million for renewal of community assets.

Our loan borrowings are expected to increase by $3 million in 2016/17 to fund initial refurbishment works

on our new depot site. Further loan borrowings will be required in 2017/18 to complete these works.

Investment enquiries have increased over the past year and the City has an unprecidented pipeline of

private sector investment projects.

We are entering another exciting period in the City's development and growth and the projects included in

this budget will underpin the achievement of our Strategic Community Plan objectives.

I commend the Elected Members and City Officers who have embraced the need for a disciplined

approach to shaping our budget.

Regards

Dr Brad Pettitt

Mayor

Annual Budget 2016-17

Thursday, 23 June, 2016

Elected Members and Executive Leadership Team

THE MAYOR

Dr Brad Pettitt

Councillors

Cr Dave Coggin (Deputy Mayor)

Cr Dave Hume

Cr Rachael Pemberton

Cr Simon Nader

Cr Jon Strachan

Cr Bryn Jones

Cr Doug Thompson

Cr Andrew Sullivan

Cr Sam Wainwright

Cr Ingrid Waltham

Cr Jeff McDonald

CHIEF EXECUTIVE OFFICER

Philip St John

DIRECTOR CITY BUSINESS

Glen Dougal

DIRECTOR COMMUNITY DEVELOPMENT

Marisa Spaziani

DIRECTOR STRATEGIC PLANNING AND PROJECTS

Paul Trottman

DIRECTOR INFRASTRUCTURE AND PROJECT DELIVERY

Lionel Nicholson (Acting)

Page 5 of 42

Trotman

Dougall

Annual Budget 2016-17

Budget Certification

THE CITY OF FREMANTLE COMPILED THE ANNUAL BUDGET ACCORDING TO SECTION 6.2

OF THE LOCAL GOVERNMENT ACT 1995

I hereby certify that the budget for the

:-a) Municipal Fund and the following Reserve Accounts

·

Investment Reserve

·

Heritage Places Reserve

·

Parking Dividend Equalisation Reserve

·

Parks Recreation and Facilities Reserve

·

Fremantle Markets Conservation Reserve

·

Renewable Energy Investment Reserve

·

Leighton Precinct maintenance Reserve

·

Leisure Centre Upgrade Reserve

·

Fremantle Town Hall Refurbishment Reserve

·

Cantonment Hill Master Plan Reserve

·

Kings Square Improvements Reserve

·

Home and Community Care Assets Replacement Reserve

·

Stan Reilly Property Redevelopment Reserve

b) Trust Funds

·

City of Fremantle trust Account

for the City of Fremantle for the 2016-17 financial year were adopted by the Council at a Special

Meeting held on 30 June 2016.

Dr B Pettitt

P St John

Annual Budget 2016-17

Thursday, 23 June, 2016

Our City

The City of Fremantle is a local government authority located 20km south of the Perth CBD comprising the

suburbs of Beaconsfield, Fremantle, Hilton, North Fremantle, O’Connor, Samson, South Fremantle and White

Gum Valley.

The Town of Fremantle Council was founded in 1871 and it wasn’t until 1929 that it gained city status. Today, the

City employs more than 450 people and services approximately 30,000 residents over a land area of 19 square

kilometres.

We pride ourselves on responsible social, economic and environmental management and in 2009, Fremantle

became WA's first carbon neutral city. In September 2014, Fremantle became one of only two councils in

Australia to achieve national One Planet certification for sustainability.

The City also has a strong focus on arts and culture and owns and runs the iconic Fremantle Arts Centre and

world-renowned festivals including Australia’s oldest festival, the Fremantle Festival.

Population

Current population

31, 046 (Estimated - 2015)

Census official population

29, 471 (Census 2012)

Population density

16.32 persons per hectare

Geographical

Total area:

19.90sq km. (CBD 5.5ha)

Average Temperature:

Summer (Jan) 18.3 - 27.7C.

Winter (Jul) 10.2 - 17.6C

Average Rainfall :

775mm

Community

Schools:

Primary 13

Secondary 4

Hospitals:

1, Fremantle Hospital

Nursing Homes:

6

Tertiary Education institutions :

University of Notre Dame

Challenger Institute

Annual Budget 2016-17

Consultation and Engagement

"The future is not some place we are going but one we are creating"

As a way of guiding the new strategic plan, corporate business plan and annual budget the City

embarked on an extensive community visioning initiative aimed at getting to the core of community

visions and values for Fremantle, now and into the future.

The Fremantle 2029: Community Visioning Project was an innovative, professional and interactive

community engagement exercise which involved a wide range of Fremantle people including those who

are not normally engaged in the future of Fremantle.

Close to 1,000 people attended five major workshops and three stakeholder forums during 2013-14. The

visioning made the most of Fremantle’s extraordinary local talent and knowledge among the presenters

and the participants to reach a diverse group of stakeholders in the community. The interactive

workshops enabled participants to have their say on key Fremantle issues and to be informed about the

long-term strategic issues facing council.

The issues most frequently mentioned by participants during the workshops included:

·

slowing traffic and making the city better for pedestrians, cyclists and improving public transport

·

supporting independent small business and the creative sector

·

protecting and enhancing the natural environment, green spaces and heritage features of the city

·

improving the connectivity around Fremantle, especially to the waterfront.

This budget and future budgets will reflect the priorities identified through the engagement process

Council's strategic management planning documemts include:

>

Strategic Community Plan

>

Corporate Business Plan

>

Long Term Financial Plan

>

Workforce Plan

The Strategic Community Plan contains a vision statement for the City and describes our objectives for

each of our seven focus areas over the next ten years.

The Corporate Business Plan outlines the strategies, activities and projects that will be delivered over the

next four years to ensure Strategic Community Plan objectives are met.

The following diagram depicts our planning framework and describes the linkages between all relevant

planning documents

Annual Budget 2016-17

Thursday, 23 June, 2016

Our Planning Framework - Continued

Annual Budget 2016-17

Our Vision

A city that is clever and creative, inspiring and inclusive. A city that welcomes and celebrates all

people, all cultures.

A city that encourages innovation, prosperity and achievement. A compassionate city that cares for

the wellbeing of our people and the environment we share.

A city that thrives on diversity, that dares to be different - and delivers on its promises.

Our Core Services

Council has developed a structured approach to the definaition of services as a key part of its stratgic and

business planning framework.

Key activities have been defined for each services and these have been used as a bisi for the development

of the 2016-17 budget.

The introduction of a new service model means that this budget document does not provide comparatives to

this new level of detail.

Service and activity budgets have been provided as an attachment to the main budget document

Service Delivery

It is proposed that existing service levels will be maintained for all operational activities in the short term,

however our objectives defined in the City of Fremantle Strategic Community Plan 2015-25 aspire to

maintain and selectively improve existing levels of service in the longer term whilst moving toward

achieving annual operating surpluses to fund new and replacement infrastructure

Annual Budget 2016-17

Thursday, 23 June, 2016

Executive Summary

The 2016-17 Annual Budget has been prepared in accordance with the requirements of the Local

Governemnt Act 1995, relevant Australian Accounting Standards and the Local Government Financial

Management Regulations.

This budget is focussed on maintaining the level of services that our community continues to expect.

Total budgeted expenditure for 2016-17 is $90.98 million. This comprises $18.7 million in capital works, $1.6

million for debt reduction and $70.68 million in operating expenditure (excluding depreciation).

This budgeted expenditure is being funded from the following revenue sources

·

$ 42.49 million in general rates

·

$ 32.6 million in other operating revenue (grants, fees and charges etc)

·

$ 4.1 million in capital grants and contributions

·

$ 4.795 million in new loan borrowings

·

$ 31.85 million from the disposal of assets (transfered to Reserves)

·

$ 6.7 million from surplus cash

·

$ 6.5 million from reserves

Highlights of how our community will benefit from this year's budget are outlined below. Some activies and

projects are partially funded by grants or other external funding sources.

Budget Highlights - Operating Income

Rate Income

The proposed general rate and minimum rate in the dollar will increase by 3% for all properties on last year's

rates.

The minimum rate will increase from $1,222 in 2015/16 to $1,259 in 2016/17.

Total rate revenue will increase from $$40.78 million in 2015/16 to $42.49 million in 2016/17.

Rate revenue includes additional interim rate revenue of $0.31 million in 2016/17.

Details of rating information are provided within the Notes to and Forming Part of the Budget.

Fees and Charges Income

Individual fees and charges have been generally increased by 3%.

Total revenue from fees and charges will increase from $25.115 million in 2015/16 to $25.525 million in

2016/17

Details on individual fees and charges increases are provided with the Fees and Charges document that

forms part of the Annual Budget.

Operating Grant Income

Operating Grants from the State and Federal Governments for base operating activities will increase from

$3.30 million in 2015/16 to $3.37 million in 2016/17.

Reimbursement Income

Operating Grants Subsidies and Contributions Income includes an addition $0.92 million in tenant

recoverable income not recognised in previous years. This is offset by the recognition of additional utility

expenses included in the expenditure side of the budget in previous years.

Annual Budget 2016-17

Executive Summary - Continued

Budget Highlights - Operating Projects

Community Safety and Crime Prevention Initiatives

Provision of an additional $50,000 to facilitate the expansion of community safety services.

Tree Planting in Recreation Reserves $50,000

An increase in the parks and landscape base operating budget to enable the city to meet the objective of

planting 1000 trees annually.

Tree Planting in Road Reserves $20,000

An increase in the parks and landscape base operating budget to enable the city to meet the objective of

planting 1000 trees annually.

Foreshore and Natural Area Maintenance $35,000

An increase in the parks and landscape base operating budget to maintain foreshores and natural areas.

Deliver in Cahoots Art Exhibition and New Residency $150,000

A residency and exhibition project presented by the Fremantle Arts Centre, in partnership with six leading

Aboriginal Art Centres across Australia, funded by the Department of Culture and the Arts.

Concept Design for Kings Square Public Realm $75,000

Preparation of a concept plan as part of the redevelopment of Kings Square

Business Plan for Fremantle Oval Precinct Redevelopment $75,000

The development of a funding model and management plan for the redevelopment of Fremantle Oval.

Library System Replacement $70,000

Replacement of our out-dated library system with a cloud based solution.

Cantonment Hill Recreation Reserve Soft Landscaping $155,000

Carried forward works from 2015/16

Bike Plan Maintenance and Minor Works $55,000

Improvement of bike amenities

Coastal Hazard Risk Management Plan $75,000

Preparation of a risk management plan for Leighton and Port beaches in partnership with other stakeholders.

Beaconsfield West Master Plan $40,000

Preparation of technical reports to support the preparation of a local structure plan.

Municipal Heritage Review $40,000

Undertake a review in high priority areas previously identified by Council.

Concept Plans for Pocket Parks at Hilton and O'Connor $30,000

Prepartion of plans as outlined in the Green Plan 2020.

Information Technology Server and Network Storage Infrastructure $150,000

Operating lease cost for the repalcement of equipment under existing lease agreements (no net increase in

cost from previous lease arrangements)

Annual Budget 2016-17

Thursday, 23 June, 2016

Executive Summary - Continued

Budget Highlights - Capital Projects

Path and Cycleway Construction, Replacement and Maintenance $0.52 million

The path and cycleway program will continue in 2016/17 for upgrading replacing and developing single and

dual use paths throughout the city

Construction of New Operations Centre $3.00 million

The detailed design for the new operations centre will be completed during 2016/17 and initial physical works

will commence on the refurbishment of the new depot site. Further funding will be allocated in the 2017/18

budget to complete this project

Fremantle Town Hall Refurbishment $2.24 million

Completion of external conservation works commenced in 2015/16

Cantonment Hill Naval Store Refurbishment $0.68 million

Building refurbishment

Landscaping Works Cantonment Hill $2.1 million

Installation of paths, irrigation equipment, park furniture and soft landscaping

Road Network Upgrade and Rehabilitation Works

Projects to be undertaken to provide a safer and efficient road network include, construction of a new

intersection at Marmion and Petra Streets, construction of a roundabout at the intersection of Watkins Street

and Wiluna Ave, construction of new traffic calming measures, resurfacing Ord Street, upgrading the

intersection of South Street and South Terrace and upgrading the intersection at Norfolk/Parry and South

Terrace

Way Finding and Signage $0.25 million

The way finding and signage program will continue in 2016/17

Warders Cottage $0.80 million

Provision for the acquisition of a Warders Cottage

South Beach Basketball Court $0.20 million

Construction of a new full sized basketball court

Detailed Design for Fremantle Park $0.10 million

Preparation of a detailed design to facilitate reconstruction of facilities

Refurbish Fremantle Boys School $0.70 million

Refurbishment of this building to facilitate use by various organisations

CCTV Upgrade $0.175 million

Provision to expand the number of cameras and connect to the police monitoring room

Loan Borrowings

This budget proposes to borrow $ 4.795 million for the following projects:

·

Project-10253 Refurbish Fremantle Boys School

$ 0.700 million

·

Project-10259 Construct new operations centre

$ 3.000 million

·

Project-10508 External conservation works to Fremantle Town Hall $ 0.300 million

·

Project-10844 Underground low volatge lines in South Terrace

$ 0.150 million

·

Project-10380 Replace heavy vehicles

$ 0.570 million

·

Project-10379 Replace light vehicles

$ 0.075 million

Annual Budget 2016-17

Income Sources

Dollars

Income Sources

Percentage

Annual Budget 2016-17

Thursday, 23 June, 2016

Operating Costs

Dollars

Operating Costs

Percentage

Page 15 of 42

Annual Budget 2016-17

Capital Expenditure

Dollars

Capital Expenditure

Percentage

Annual Budget 2016-17

Thursday, 23 June, 2016

Operating Income

Operating Expenditure

Operating Surplus (Deficit)

The operating deficit for 2016/17 will increase as a result of:

·

Classifying soft landscaping works as operating expenditure instead of capital expenditure

·

Changes to the way public works overheads have been allocated in previous years

·

An increase in the value of operating projects to be undertaken in 2016/17 compared with 206/17

Annual Budget 2016-17

Capital Expenditure

Note: Expenditure in 2014/15 includes $6.5 million for the purchase of a new operations

depot site.

Statement of Comprehensive Income

by

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Revenue

42,486,764

40,777,481

40,262,727

Rate Income

5,015,250

4,343,370

4,748,186

Operating Grants Subsidies and Contributions

Income

25,525,100

25,115,966

24,861,240

Fees and Charges Income

Service Charges Income

1,834,045

1,837,684

1,554,045

Interest Income

240,550

225,542

198,292

Other Income

75,101,709

72,300,043

71,624,490

Expenses

(37,417,109)

(35,552,496)

(36,987,338)

Employee Expenses

(26,275,618)

(25,962,098)

(25,353,795)

Materials and Contracts Expenses

(2,318,765)

(1,618,104)

(1,720,066)

Utility Expenses

(7,234,000)

(7,191,244)

(7,457,066)

Depreciation Expense

(685,000)

(806,768)

(806,768)

Interest Expenses

(753,470)

(776,023)

(847,718)

Insurance Expenses

(3,233,869)

(1,879,643)

(2,003,704)

Other Expenses

(77,917,831)

(73,786,376)

(75,176,455)

Operating Surplus (Deficit)

(3,551,965)

(1,486,333)

(2,816,122)

Non Operating Grants Subsidies and Contributions

4,109,287

2,286,834

4,161,531

Non Operating Grants Subsidies and Contributions

4,109,287

2,286,834

4,161,531

Proceeds on Asset Disposal

30,850,000

544,963

31,420,000

Proceeds on Asset Disposal - Land

850,000

1,010,000

Proceeds on Asset Disposal - Buildings

152,000

126,973

149,600

Proceeds on Asset Disposal - Fleet

23,912

Proceeds on Asset Disposal - Other

31,852,000

695,848

32,579,600

Value of Disposed Assets

(25,280,000)

(640,000)

(25,890,000)

Value of Disposed Assets - Land

(850,000)

(405,641)

(2,839,520)

Value of Disposed Assets - Buildings

(340,000)

(125,037)

(149,202)

Value of Disposed Assets - Fleet

(10,314)

Value of Disposed Assets - Other

(26,470,000)

(1,180,992)

(28,878,722)

Non Operating income and Expenditure

7,862,409

1,801,690

9,491,287

NET RESULT

4,310,444

315,357

6,675,165

Change in Equity

Change in Equity - Joint Venture

0

0

0

Other Comprehensive Income

0

0

0

4,310,444

315,357

6,675,165

TOTAL COMPREHENSIVE INCOME

Statement of Comprehensive Income

by

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Operating Revenue

66,050

238,830

199,338

Governance

45,637,858

43,271,468

43,042,710

General Purpose Funding

2,407,500

2,457,152

2,238,535

Law Order Public Safety

546,100

541,276

501,650

Health

1,536,900

1,515,961

1,964,504

Education and Welfare

3,104

Housing

2,148,600

1,742,680

1,780,718

Community Amenities

7,954,781

7,246,942

6,823,552

Recreation and Culture

11,328,000

11,176,657

11,021,000

Transport

1,152,450

516,588

499,840

Economic Services

2,323,470

3,589,385

3,552,643

Other Property and Services

71,624,490

72,300,043

75,101,709

Operating Expenditure

(6,023,901)

(5,703,981)

(5,779,203)

Governance

(999,056)

(945,998)

(1,071,902)

General Purpose Funding

(4,553,452)

(4,311,625)

(4,623,999)

Law Order Public Safety

(867,815)

(821,727)

(830,200)

Health

(4,275,572)

(4,048,503)

(4,664,767)

Education and Welfare

(49,373)

(46,751)

(52,727)

Housing

(12,093,782)

(11,451,499)

(11,693,354)

Community Amenities

(21,801,162)

(20,643,335)

(19,958,947)

Recreation and Culture

(15,889,162)

(15,045,312)

(15,958,806)

Transport

(3,133,090)

(2,966,696)

(2,827,959)

Economic Services

(7,386,466)

(6,994,181)

(6,907,823)

Other Property and Services

(74,369,687)

(72,979,608)

(77,072,831)

Finance Costs

(11,576)

(11,052)

(11,052)

Education and Welfare

(17,098)

(16,324)

(16,324)

Recreation and Culture

(786,388)

(750,809)

(750,809)

Transport

(29,938)

(28,583)

(28,583)

Other Property and Services

(806,768)

(806,768)

(845,000)

Operating Surplus (Deficit)

(3,551,965)

(1,486,333)

(2,816,122)

Non-Operating Grants Subsidies and Contributions

9,091

Governance

175,000

(5,186)

(4,871)

Law Order Public Safety

20,000

4,765

115,229

Education and Welfare

2,272,000

304,775

1,390,336

Recreation and Culture

1,262,287

1,447,756

9,758,068

Transport

50,000

Economic Services

5,712,000

40,489

(3,396,353)

Other Property and Services

7,862,409

1,801,690

9,491,287

Non Operating income and Expenditure

7,862,409

1,801,690

9,491,287

Change in Equity

0

0

0

Other Comprehensive Income

0

0

0

TOTAL COMPREHENSIVE INCOME

4,310,444

315,357

6,675,165

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Revenue from Operating Activities

Service Charges (Underground Power)

5,015,250

4,343,370

4,748,186

Operating Grants, Subsidies and Contributions

25,525,100

25,115,966

24,861,240

Fees and Charges

1,834,045

1,837,684

1,554,045

Interest Earnings

240,550

225,542

198,292

Other Revenue

32,614,945

31,522,562

31,361,763

Expenditure from Operating Activities

(37,417,109)

(35,552,496)

(36,987,338)

Employee Costs

(26,275,618)

(25,962,098)

(25,353,795)

Materials and Contracts

(685,000)

(806,768)

(806,768)

Interest Expenses

(2,318,765)

(1,618,104)

(1,720,066)

Utility Charges (gas, electricity, water)

(753,470)

(776,023)

(847,718)

Insurance Expenses

(3,233,869)

(1,873,342)

(2,003,704)

Other Expenditure

(70,683,831)

(66,588,831)

(67,719,389)

Operating activities excluded from budget

(6,301)

Fair Value Adjustments

(26,470,000)

(1,180,992)

(28,878,722)

Value of Assets Sold

(7,234,000)

(7,191,244)

(7,457,066)

Depreciation of non-current assets

(33,704,000)

(8,378,537)

(36,335,788)

Non Current Movements Excluded

16,325

Non Current Movements

16,325

Capital Revenue and Expenditure

Revenue from Capital Activities

4,109,287

2,286,834

4,161,531

Capital Grants Subsidies and Contributions

4,109,287

2,286,834

4,161,531

Expenditure on Capital Activities

(18,709,739)

(11,567,899)

(25,079,521)

Acquisition of Assets

(18,709,739)

(11,567,899)

(25,079,521)

Transfers to and from Reserves

33,570,760

(1,592,421)

(33,292,421)

Transfers to Reserves (Restricted Assets)

(6,487,800)

3,003,241

7,613,517

Transfers from Reserves (Restricted Assets)

27,082,960

1,410,820

(25,678,904)

Other Capital Funding

31,852,000

695,848

32,579,600

Proceeds from Disposal of Assets

4,795,500

1,209,000

8,909,000

Proceeds from New Debentures

(1,571,238)

(2,182,381)

Repayment of Debentures

54,168

211,333

Self-Supporting Loan Principal Income

35,130,430

(66,200)

41,488,600

Budget deficiency before general rates

(41,465,920)

(43,002,714)

(44,621,868)

Net current assets at the start of the year

surplus (deficit)

4,344,012

3,563,186

2,135,104

(40,262,727)

(40,777,481)

(42,486,764)

Estimated amount to be raised from general

rates

Net current assets at the end of the year

surplus (deficit)

2,359,993

2,135,104

0

Annual Budget 2016-17

Thursday, 23 June, 2016

City of Fremantle

Statement of Net Current Assets

Actual

204/15

Budget

2016/17

Current Forecast

2015/16

Current Assets

644,683

647,647

1,528,069

Cash - Unrestricted

Cash and Cash Equivalents

_1,528,069

_644,683

_647,647

11,435,871

9,816,247

16,841,054

Investments - Unrestricted

24,423,203

51,506,163

25,834,023

Investments - Restricted

748,555

743,955

804,961

Investments - Other

Investments

_43,480,038

_36,607,629

_62,066,365

705,166

705,166

264,154

Receivables - Rates

1,243,434

1,243,434

1,297,497

Receivables - Sundry Debtors

831,005

831,005

581,005

Receivables - GST

54,168

0

211,333

Receivables - Loans to Clubs and Institutions

Trade and Other Receivables

_2,353,989

_2,833,773

_2,779,605

185,955

185,955

178,763

Inventory - Consumables

0

0

0

Inventory - Goods for Sale

Inventories

_178,763

_185,955

_185,955

47,540,859

40,272,040

Total - Current Assets

65,679,572

Current Liabilities

(7,052,407)

(7,546,251)

(10,578,675)

Sundry Creditors

0

0

(274,157)

Income Received in Advance

(500,000)

(500,000)

(235,000)

GST Payable

Trade and Other Payables

_(11,087,833)

_(7,552,407)

_(8,046,251)

(1,571,238)

(1,572,039)

(2,471,326)

Current Loan Borrowings

Current Portion of Long Term Borrowings

_(2,471,326)

_(1,571,238)

_(1,572,039)

(12,964)

(12,964)

(12,964)

Current Prepaid Lease - Fremantle Markets

(6,094,194)

(6,114,194)

(6,050,693)

Current Provision - Annual Leave

Provisions

_(6,063,658)

_(6,107,158)

_(6,127,158)

(19,622,817)

(15,230,803)

Total - Current Liabilities

(15,745,448)

27,918,042

Net Current Assets

25,041,237

49,934,124

Less Cash - Restricted Reserves

(25,834,023)

(24,423,203)

(51,506,163)

Less Receivables - Loans to Clubs and Institutions

(211,333)

(54,168)

0

Add Current Loan Borrowing

2,471,326

1,571,238

1,572,039

ESTIMATED SURPLUS (DEFICIENCY) C/FWD

4,344,012

2,135,104

0

Annual Budget 2016-17

Thursday, 23 June, 2016

Opening Balance

2015/16

Budget

2016/17

Current Forecast

2015/16

Current Assets

1,528,069

644,683

647,647

Cash and Cash Equivalents

43,480,038

36,607,629

62,066,365

Investments

2,353,989

2,833,773

2,779,605

Trade and Other Receivables

178,763

185,955

185,955

Inventories

47,540,859

40,272,040

Total - Current Assets

65,679,572

Non Current Assets

427,620

357,126

357,126

Receivables - Non Current

2,445,405

2,445,405

2,445,405

Investments - Non Current

205,279,119

206,457,269

200,653,269

Property Plant and Equipment

48,514,989

49,057,022

25,457,022

Investment Property

229,941,752

231,500,226

227,200,226

Infrastructure

0

0

0

Asset Disposal Clearing

0

82,996

18,626,743

Capital Work In Progress

486,608,885

489,734,052

Total - Non Current Assets

474,739,791

Current Liabilities

11,087,833

7,552,407

8,046,251

Trade and Other Payables

2,471,326

1,571,238

1,572,039

Current Portion of Long Term Borrowings

6,063,658

6,107,158

6,127,158

Provisions

19,622,817

15,230,803

Total - Current Liabilities

15,745,448

Non Current Liabilities

17,816,593

17,743,300

20,966,761

Long Term Borrowings

916,231

922,531

922,531

Provisions - Non Current

18,732,824

18,665,831

Total - Non Current Liabilities

21,889,292

Equity

141,346,341

143,072,518

122,664,723

Retained Surplus

25,834,023

24,423,203

51,506,163

Reserves - Cash Backed

328,613,738

328,613,737

328,613,737

Revaluation Surplus

495,794,102

496,109,458

Total - Equity

502,784,623

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Cash Flows from Operating Activities

Receipts - Operating

42,486,764

40,352,794

40,262,727

Rates

5,015,250

4,397,433

4,748,186

Operating Grants Subsidies and Contributions

25,525,100

24,973,960

24,861,240

Fees and Charges

Service Charges

1,834,045

1,837,684

1,554,045

Interest Earnings

265,000

Goods and Services Tax

735,950

514,720

198,292

Other Revenue

71,624,490

72,341,591

75,597,109

Payments - Operating

(37,384,145)

(35,462,657)

(36,987,338)

Employee Costs

(26,290,138)

(25,918,574)

(25,353,795)

Materials and Contracts

(2,318,765)

(1,618,104)

(1,720,066)

Utility Charges

(685,000)

(806,768)

(806,768)

Interest Expenses

(753,470)

(776,023)

(847,718)

Insurance Expenses

(250,000)

Goods and Services Tax

(3,233,869)

(5,917,995)

(2,003,704)

Other Expenditure

(67,719,389)

(70,750,121)

(70,665,387)

Net cash provided by (used in) operating activities

3,905,101

1,591,470

4,931,722

Cash Flows from Investing Activities

Receipts - Investing

4,109,287

2,286,834

4,161,531

Non Operating Grants Subsidies and Contributions

31,852,000

695,848

32,579,600

Proceeds from Asset Sales

36,741,131

2,982,682

35,961,287

Payments - Investing

(18,709,739)

(11,567,899)

(25,079,521)

Payments for the Acquisition of Assets

(25,079,521)

(11,567,899)

(18,709,739)

Net cash provided by (used in) investing activities

11,661,610

(8,585,217)

17,251,548

Cash Flows from Financing Activities

Receipts - Financing

4,795,500

1,209,000

8,909,000

Proceeds - New Debentures

54,168

211,334

211,333

Proceeds - Self Supporting Loans

9,120,333

1,420,334

4,849,668

Payments - Financing

(1,571,238)

(2,182,381)

(2,471,326)

Repayment of Debentures

(2,471,326)

(2,182,381)

(1,571,238)

Net cash provided by (used in) financing activities

6,649,007

(762,047)

3,278,430

Net increase (decrease) in cash held

Cash at the beginning of year

45,008,107

45,008,107

37,252,313

Cash and cash equivalents at the end of the year

67,223,825

37,252,313

62,714,013

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Cantonment Hill Master Plan Reserve

Reserve Purpose:

To fund capital works at Cantonment Hill in accordance with the Catonment Hill Master Plan.

Source of Income:

Transfer from the Investment Reserve as approved by Council. Transfer from Municipal Fund

amounts determined by Council through the annual budget and budget review

Opening Balance

1,712,227

1,712,227

1,439,884

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(1,707,185)

(272,343)

(1,264,800)

Closing Balance

5,042

1,439,884

175,084

Fremantle Markets Conservation Reserve

Reserve Purpose:

To fund conservation works to the Fremantle Markets

Source of Income:

Contribution by lessee on signing of new lease in June 2008. Increase of rent derived from the

premises for the first ten years of the lease commencing in June 2008 as a minimum to assit in

obtaining external funding for implementing the Conservation Plan.

Opening Balance

199,559

199,559

245,581

Transfer to Reserves (Based on Operating Surplus)

159,135

159,135

159,135

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(113,113)

(33,000)

Transfer from Reserves (Loan Principal Repayments)

(113,113)

(115,000)

Closing Balance

245,581

245,581

256,716

Fremantle Town Hall Refurbishment Reserve

Reserve Purpose:

To provide funds for major refurbishment of the historic Fremantle Town Hall.

Source of Income:

Transfer from the Investment Reserve as approved by Council. Transfer from Municipal Fund

amounts determined by Council through the annual budget and budget review.

Opening Balance

2,000,000

2,000,000

1,600,000

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(1,622,500)

(400,000)

(1,600,000)

Closing Balance

377,500

1,600,000

0

Annual Budget 2016-17

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

HACC Asset Replacement Reserve

Reserve Purpose:

To fund capital acquisitions for the Home and Community Care(HACC)program.

Source of Income:

Transfer from the cash operating surplus of Home and Community Care (HACC) program as

agreed by funding agency.

Opening Balance

76,545

76,545

76,545

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

Closing Balance

76,545

76,545

76,545

Heritage Places Reserve

Reserve Purpose:

To finance the major upgrading and maintenance (including painting) to the Fremantle Town Hall.

Conserve heritage places already owned or vested in the Council. Augment external funds

allocated to the City for the purpose of heritage conservation. Provide assiatnce to other owners of

heritage places within the municipality where Council is satisfied that this is a proper, cost effective

and lawful use of the funds. To administer conservation funds appeals. To finance the additional

costs of higher specified infrastructure improvements (e.g. footpaths, roads, landscaping,

buildings, etc) to areas abutting or adjacent to heritage places where the higher specifications are

incurred to maintain the area in sympathy with the heritage place. Purchase heritae properties

within the municipality of fremantle which are in a distinct need of conservation, Council can

conserve according to the Burra Charter principles, enable Council to demonstrate the Burra

Charter model of conservation for other to follow or in Council's estimation would otherwise be

conserved (restored) in accordance with Burra Charter principles. Finance major renewal,

restoration or maintenance of heritage properties. Council Policy SG30 HEritage Places Reserves

also refers.

Source of Income:

Municipal Fund contribution as approved by Council in the annual budget. Net proceeds from sale

of properties whose initial acquisition and restoration was financed from this reserve.

Opening Balance

105,241

105,241

17,272

Transfer to Reserves (Based on Operating Surplus)

495,180

495,180

523,125

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(619,787)

(583,149)

(540,000)

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Investment Fund Reserve

Reserve Purpose:

To realise and make investments in income producing assets. A specified list of investment

properties forms part of the investments. Funds will not be withdrawn from the reserve to

subsidise operating or recurrent expenditure, nor shall funds be withdrawn for the purpose of

providing community facilities that do not provide a commercial rate of return, unless specifically

decided otherwise by the Council.

Source of Income:

Net proceeds of sale of nominated freehold properties, unless otherwise resolved by Council. Net

proceeds from sale of miscellaneous parcels of land, unless otherwise resolved by Council.

Transfer from municipal fund of principal repayment equivalent for Loan 189 (Queensgate) that

was paid out in January 2006 using funds from the Investment Reserve. Net proceeds from the

winding up of the City of Fremantle Trust Fund as per the City of Fremantle and Town of East

Fremantle Trust Funds (Amendment and Expiry) Bill 2013.

Opening Balance

10,068,870

10,068,870

9,396,979

Transfer to Reserves (Based on Operating Surplus)

31,700,000

32,430,000

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(1,616,500)

(671,891)

(1,755,000)

Closing Balance

40,152,370

9,396,979

40,071,979

Kings Square Improvements Reserve

Reserve Purpose:

To fund capital improvements to Kings Square.

Source of Income:

Transfer from the Investment Reserve as approved by Council. Transfer from Municipal Fund

amounts determined by Council through the annual budget and budget review

Opening Balance

1,356,522

1,356,522

1,356,522

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(75,000)

Closing Balance

1,356,522

1,356,522

1,281,522

Annual Budget 2016-17

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Leighton Precinct Maintenance Reserve

Reserve Purpose:

To hold any specified area rate income raised during the financial year taht were unspent at 30

June in relation to Leighton Precinct maintenance. To fund the above normal costs associated with

maintaining the higher standard of the landscaping of the Leighton residential area.

Source of Income:

Revenue raised from a specified area rate that was unspent at the end of the financial year.

Opening Balance

144,888

144,888

162,319

Transfer to Reserves (Based on Operating Surplus)

38,001

40,000

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(20,570)

Closing Balance

144,888

162,319

202,319

Leisure Centre Upgrade Reserve

Reserve Purpose:

To provide funds for major upgrading and refurbishment works at the Fremantle Leisure Centre.

Source of Income:

Transfer from the Investment Reserve as approved by Council. Transfer from Municipal Fund

amounts determined by Council through the annual budget and budget review.

Opening Balance

150,000

150,000

150,000

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(27,500)

Annual Budget 2016-17

Thursday, 23 June, 2016

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Parking Dividend Equalisation Reserve

Reserve Purpose:

To provide a smoothing out of revenue contributions to municipal operations from commercial

parking activities. That is to be achieved as follows (a) by transferring net profits in excess of

budget to the reserve and (b) if required , when there is a material (i.e. plus 1%) net loss,

transferring funds from the reserve to municipal fund to compensate the loss. Fund commercial

parking capital equipment and facilities or parking infringement capital equipment and facilities to

the extent the funds available in the reserve exceed 2.5% of budgetted gross parking revenue.

Source of Income:

Transfer from the Municipal Fund (a) net profit on commercial parking operations exceeding a set

figure in the budget. Note: Net profit is calculated including depreciation and allocated support

service costs but excludes capital. and/or (b) Transfer from the Municipal Fund amounts

determined by Council through the annual budget or budget review in relation to parking

operations. Transfer from Municipal Fund amounts determined by Council through the annual

budget or budget review in relation to parking infringement operatons. Net proceeds from sale of

parking facilities as determined by Council through the annual budget or budget review.

Opening Balance

6,913,281

6,913,281

7,392,275

Transfer to Reserves (Based on Operating Surplus)

500,000

500,000

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(370,000)

(21,006)

(744,000)

Closing Balance

7,043,281

7,392,275

6,648,275

Parks Recreation and Facilities Reserve

Reserve Purpose:

To fund improvements within the South Fremantle Tip Site Reserve. To Finance improvements

within the Kings Square Reserve. To Finance tourism projects within the City. To finance facilities

for sporting clubs on a self supporting loan basis in accordance with Council guidelines for such

advances to clubs. To Finance improvements within the Port and Leighton Beach Reserve. To

finance capital works and improvements at Fremantle Oval. To Finance improvements or major

refurbishments to other parks and recreation facilities within the municipality.

Source of Income:

Municipal Fund contribution as approved by Council in the annual budget.

Opening Balance

767,925

767,925

261,236

Transfer to Reserves (Based on Operating Surplus)

41,962

3,961

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(1,170,650)

(510,650)

(260,000)

Closing Balance

(360,763)

261,236

1,236

Annual Budget 2016-17

Original Budget

2015/16

Current Forecast

2015/16

Budget

2016/17

Renewable Energy Investment Reserve

Reserve Purpose:

To purchase sufficient carbon offsets to maintain the City's carbon neutral status. Remaining funds

will then be used to invest in projects that promote positive renewable energy outcomes . If no

renewable energy projects can be identified, the fund will accumulate that year's contribution.

Source of Income:

Transfer from Municipal Fund amounts determined by Council through the annual budget and

budget review.

Opening Balance

338,965

338,965

324,590

Transfer to Reserves (Based on Operating Surplus)

396,144

396,144

418,500

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

(393,782)

(410,519)

(73,500)

Closing Balance

341,327

324,590

669,590

Stan Reilly Property Redevelopment Reserve

Reserve Purpose:

To fund capital works for the development of the Stan Reilly site.

Source of Income:

Transfer from the Investment Reserve as approved by Council. Transfer from Municipal Fund

amounts determined by Council through the annual budget and budget review

Opening Balance

2,000,000

2,000,000

2,000,000

Transfer to Reserves (Based on Operating Surplus)

Transfer to Reserves (Specified Amount)

Transfer from Reserves (Operating and Capital Projects)

Closing Balance

2,000,000

2,000,000

2,000,000

Summary

Opening Balance

25,834,023

25,834,023

24,423,203

Transfer to Reserves (Based on Operating Surplus)

33,292,421

1,592,421

1,140,760

Transfer to Reserves (Specified Amount)

32,430,000

Transfer from Reserves (Operating and Capital Projects)

(7,613,517)

(2,890,128)

(6,372,800)

Transfer from Reserves (Loan Principal Repayments)

(113,113)

(115,000)

Annual Budget 2016-17

16/17

City of Fremantle

Draft Budget - Projects Funded from Reserves

Budget

Reserve Investment Fund

Capital

$270,000

Install compliant lift and stairs to Evan Davies building (stage 3)

Project-10242

$500,000

Prepare detailed design for Council offices (Freo 2029)

Project-10296

$145,000

Construct a new data center to facilitate the transition to the new depot

and construction of a new administration building.

Project-10454

$800,000

Purchase Warders Cottage

Project-10774

$20,000

Undertake land swap with State Government for Warders Cottage W1

Rear Yards

Project-10775

$20,000

Make an unsolicited bid for Lot 52 Kings Square

Project-10821

$1,755,000

Reserve Heritage Places

Capital

$340,000

Undertake external conservation works to Fremantle Town Hall

Project-10508

$200,000

Upgrade Old Fire Station building

Project-10845

$540,000

Reserve Parking Dividend Equalisation

Capital

$384,000

Replace parking modems supported by 3G network

Project-10712

$360,000

Install new parking meters on Marine Terrace

Project-10768

$744,000

Reserve Parks Recreation and Facilities

Operating

$15,000

Prepare concept design for pocket park Hilton (Green Plan 2020)

Project-10179

$15,000

Prepare concept design for pocket park O'Connor (Green Plan 2020)

Project-10183

Capital

$60,000

Prepare detailed design for the redevelopment of Fremantle Park

Project-10347

$170,000

Replace Esplanade Park bore

Project-10592

$260,000

Reserve Kings Square Improvements

Operating

$75,000

Prepare concept design for Kings Square Public Realm upgrade (Freo

2029)

Project-10293

Annual Budget 2016-17

Thursday, 23 June, 2016

16/17

City of Fremantle

Draft Budget - Projects Funded from Reserves

Budget

Reserve Fremantle Markets Conservation

Capital

$33,000

Replace ceiling at Stall 16 Fremantle Markets

Project-10232

$33,000

Reserve Renewable Energy Investment

Operating

$2,500

Review Climate Change Adaptation Plan (One Planet)

Project-10178

$10,000

Review and integrate Tech1 and GreensenseVIEW (One Planet)

Project-10374

$50,000

Prepare an energy plan for the City (One Planet)

Project-10375

$1,000

Conduct smart LED streetlighting trial (One Planet)

Project-10378

Capital

$10,000

Upgrade City owned public lighting to LED or sustainable technologies

(One Planet)

Project-10373

$73,500

Reserve Leisure Centre Upgrade

Capital

$27,500

Replace change room building roof at Fremantle Leisure Centre

Project-10270

$27,500

Reserve Fremantle Town Hall Refurbishment

Capital

$1,600,000

Undertake external conservation works to Fremantle Town Hall

Project-10508

$1,600,000

Reserve Cantonment Hill Master Plan

Operating

$55,500

Landscape Recreation Reserve (soft) - Cantonment Hill (stage 1)

Project-10328

Capital

$680,000

Refurbish Cantonment Hill Naval Store to heritage standards and public

access requirements

Project-10325

$292,200

Install structures - Cantonment Hill (stage 1)

Project-10329

$103,400

Install paths - Cantonment Hill (stage 1)

Project-10330

$133,700

Install irrigation system - Cantonment Hill (stage 1)

Project-10331

$1,264,800

Total number of projects: 27

$6,372,800

Annual Budget

2016-17

Notes to and forming part of the budget

Annual Budget

2016-17

Table of Contents

Notes forming to and part of the budget

Page

1.

Significant Accounting Policies

3

2.

Reporting Program Descriptions

13

3.

Auditors Remuneration

15

4.

Deprecaition of Non Current Assets by Program

15

5.

Deprecaition of Non Current Assets by Class

15

6.

Interest Income

16

7.

Interest Expense

16

8.

Fees and Charges Revenue

17

9.

Elected Member Remuneration

17

10. Reconcilliation of Cash and Reserves

18

11. Reconciliation of Net Cash Provided by Operating Activities

19

12. Undrawn Borrowings Facilities

19

13. Disposal of Assets by Class

20

14. Disposal of Assets by Program

21

15. Information on Loan Borrowings

22

16. Rating and Valuation Information

25

17. Objectives and Reasons for Differential Rates

26

18. Rate Payment Discounts, Wavers and Concessions

29

19. Specified Area Rates

30

20. Service Charges

31

21. Interest Charges and Instalments - Rates

31

22. Major Land Transactions

32

23. Trading Undertakings and Major Trading Undertakings

32

24. Loan Advances

33

25. Restricted Contributions

34

26. Trust Funds

37

27. Capital Projects

38