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ANNUAL REPORT


WHO WE ARE

CHAIRMAN’S REPORT

The Eastern Metropolitan Regional Council (EMRC) is a progressive and innovative regional Local Government working on behalf of six member Councils – the Town of Bassendean, City of Bayswater, City of Belmont, Shire of Kalamunda, Shire of Mundaring and City of Swan. Providing a range of services, the EMRC’s operations are governed by the Council which consists of two Councillors and a Deputy from each member Council. The Council works through approximately 85 skilled and dedicated staff who work across six core business areas – Governance and Corporate Services, Waste Management and Engineering, Environmental Services, Regional Development, Risk Management Services and the Resource Recovery Project.

WHERE WE ARE GOING The EMRC’s vision is to be a responsive and innovative leader in assisting Perth’s Eastern Region to be a great place to live, work, play and do business. Our mission is, the EMRC, by partnering with member Councils and other stakeholders, facilitates strategies and provides services for the benefit and sustainability of Perth’s Eastern Region.

OUR VALUES EMRC is governed by the values of: Excellence Striving for excellence through the development of quality and continuous improvement Recognition Valuing staff in a supportive environment that focuses on their wellbeing Innovation Focus on innovative approaches in projects and service delivery Responsiveness Dynamic and flexible service delivery Integrity Accountability and consistency in all that we do

Leaders ensure that the organisation’s values are created and sustained by establishing the Council’s strategic direction and providing an environment that encourages all staff to reach their potential in achieving the organisational goals.

COMMITTEES

THE REGION WE WORK FOR Perth’s Eastern Region, represented by the six member Councils that comprise the EMRC, stretches from the edge of the Perth CBD, along the Swan River through urban residential, commercial and industrial areas to the scenic Swan Valley and into the forests and prime agricultural land in the Darling Ranges. Covering approximately one third of the Perth metropolitan area, the region is home to approximately 300,000 people from diverse cultural backgrounds, and with population growth forecast to be around 8% per annum over the next 10 years, it is also one of the fastest growing regions in Western Australia. This growth has lead to the development of a range of attractive residential options. With everything from family based communities through to luxury waterfront apartments on the Swan River; the region represents a great place to live. With world-class wineries, an abundance of heritage and cultural attractions, and some of the State’s most beautiful national parks and walking trails; the region also has lots to see and do. Home to Western Australia’s major transport hub, the region hosts both the international and domestic airports, along with major rail and road networks linking WA with the east coast of Australia. This coupled with the region’s proximity to the CBD, strong service, manufacturing and engineering industries, and affordable commercial and industrial properties; make it an ideal place in which to do business and invest.

GOVERNANCE

& CORPORATE SERVICES

ENVIRONMENTAL SERVICES

RISK MANAGEMENT SERVICES

STATUTORY REPORTS

FINANCIAL REPORTS

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04 06 07 07 09 11 14 16 19 21 24 26 27 33 2

CEO’S OVERVIEW

ELECTED REPRESENTATIVES

WASTE MANAGEMENT

& ENGINEERING

REGIONAL DEVELOPMENT

RESOURCE RECOVERY PROJECT

FIVE YEAR FINANCIAL PLAN

NOTES FOR CONCISE FINANCIAL REPORT

Annual Report 2005


CHAIRMAN’S REPORT “I urge you all to experience and explore the many wonderful places that Perth's Eastern Region has to offer.”

Over the last year, the EMRC’s work has continued to focus on achieving sustainable outcomes for the region in the continued development of its strategic framework. We have implemented an internal audit committee, and to show the new change of purpose, the former Image Identity Review Committee is now the Regional Identity Committee.

to develop the strategy for a blueprint for transport infrastructure in our region. This Integrated Transport Strategy is planned to guide developments for the next 20 years. A third contract went to Hassell Pty Ltd. They will develop the Swan River Concept Plan and Management Strategy. This will continue to improve the environmental, social and economic value of the river to our region. The major contract in the last year went to Cardno BSD Meinhardt for the Resource Recovery Project. Cardno BSD have already started the vital process of consulting with the communities across all six Councils. Part of the Resource Recovery Project includes examining the possibilities of a Resource Recovery Park at Hazelmere and Council received the report on a study of this aspect of resource recovery.

In the major area of waste management, the EMRC managed to divert over 12,000 tonnes of greenwaste from landfill. During the year, filling to Stage 10 of our Class III cell began, and the design of Stage 2 of the Class IV cell got underway. EMRC continues to plan for the future and as part of this, a large part of Red Hill farm was re-zoned to allow room for future waste management activities. An extensive drilling programme was also commenced to source underground water to give us more information on the geology of the site.

I’d like to acknowledge the work of former Chairman Cr Elizabeth Taylor. I also want to congratulate the Chairmans and deputies of the EMRC committees, to thank all Councillors for their enthusiasm and input at our meetings, and a special thanks to the community volunteers who gave up their valuable time to serve on the EMRC’s Waste Management Community Reference Group. If you haven’t yet, I urge you all to visit the Perth Tourism website at www.perthtourism.com.au. This fantastic website features advanced search abilities that will help you, your friends and visitors to experience and explore the many wonderful places that Perth’s Eastern Region has to offer.

The Environmental Services Team prepared many submissions on environmental initiatives and plans that affect the region. This work is part of their regional environmental advisory work for all member Councils. A new team of professional staff was also established to progress Natural Resource Management (NRM) activities in the Eastern Hills Sub-region. At the same time, in Risk Management, member Councils saw a 15% drop in the number of workers compensation claims.

COUNCILLOR JOHN BEATON Chairman

Ernst & Young are our managing consultants to help us establish Industry Clusters for Perth’s Eastern Region. Another contract was awarded to the ARRB Group

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Annual Report 2005


CEO’S OVERVIEW The EMRC, member Councils and its stakeholders can be proud of the organisation’s achievements during the past year and this can be directly attributed to the enthusiasm and support of our Council and committees, to the energies and motivation of all EMRC staff and to the collaborative efforts of member Council staff. EMRC’s key outcomes and outcome objectives, along with the core processes we will be undertaking to achieve them. We recognise that the only way we can achieve these outcomes and objectives is to work in close partnership with the six member Councils. In an effort to strengthen the working relationship we have forged with the member Councils and improve communication, in 2004-05 EMRC introduced the production of Delegate’s Reports. Delegate’s Reports are produced for each Councillor following EMRC Council meetings and provide a summary of key issues and resolutions along with the implications of each decision for that member Council. The reports also highlight upcoming projects, activities and initiatives that have an impact on each member Council, along with relevant contact details if further information is required. I trust the implementation of this communication protocol is working well and facilitating information exchange with greater ease.

“...the organisation continued to deliver and develop its portfolio of services and regional projects.”

I would like to begin by congratulating everyone involved in the EMRC’s 2004-05 financial year, during which the organisation continued to deliver and develop its portfolio of services and regional projects. This year’s pleasing results have enabled us to continue on our mission, in partnership with member Councils and other stakeholders, to facilitate strategies and actions for the benefit and sustainability of Perth’s Eastern Region. The key achievements highlighted throughout this year’s annual report can be attributed to: The leadership and guidance provided by Council and committees Working in close consultation and partnership with the six member Councils Recruiting and retaining experienced and qualified staff at both the Red Hill Waste Management Facility and Belmont Administration Office Integrating Strategic and Business Plan actions with staff Personal Commitment Plans to ensure they support EMRC’s strategic objectives Implementing innovative business planning software to improve monitoring and progress reporting to stakeholders A key focus of the past year has been the ongoing development of EMRC’s approach to strategic planning. The review of EMRC’s strategic framework culminated in the development of EMRC’s Strategy Map in 2003-04. This map continues to undergo refinement and outlines

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With a new Council appointed in May 2005, I’d like to sincerely thank all Council members, as well as committee members, deputies and officers on the Chief Executive Officers Advisory Committee (CEOAC), Technical Advisory Committee (TAC) and Strategic and Secondary Waste Treatment Committee (SSWTC). In the last two years they have so generously provided their time and energies in making a valued contribution to our activities. In particular I’d like to thank Councillor Elizabeth Taylor for the advice and support she provided me during her term as EMRC Chairman from May 2003 to May 2005. I also extend my appreciation to the Executive Management Team for the direction they give me in my position as Chief Executive Officer. The recent departure of two Executive Managers has provided a timely opportunity to streamline and simplify organisational structure in 2005-06. Finally, I would like to praise the work of all EMRC staff. Their professionalism, energy and dedication towards serving the member Councils is most valuable - every outcome they work to achieve brings great benefit to residents, businesses and investors in the region. I look forward to seeing the continued development of EMRC and Perth’s Eastern Region unfold in the coming years and I hope you do the same.

G.K. WATTERS Chief Executive Officer

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COMMITTEES In order to assist with its planning and decision-making, the EMRC Council has appointed five key committees:

THE CHIEF EXECUTIVE OFFICERS ADVISORY COMMITTEE (CEOAC)

THE REGIONAL IDENTITY COMMITTEE (RIC)

The CEOAC was formed to consider matters that have an impact on the member Councils and/or EMRC’s business activities. Consisting of the member Council CEOs and the EMRC CEO, the CEOAC provides recommendations to the EMRC Council.

The RIC consists of one Councillor from each member Council. The RIC meets to review and develop branding for the region. The RIC was previously known as the Image Identity Review Committee (IIRC). The name change reflects the amended terms of reference for the committee in overseeing the development of a regional identity.

THE TECHNICAL ADVISORY COMMITTEE (TAC)

THE AUDIT COMMITTEE (AC)

The TAC consists of an officer from each member Council, the EMRC’s CEO and appointed deputies. The TAC reviews and provides reports on technical matters and recommendations for Council meetings.

The AC consists of one Councillor from each member Council. An Audit Committee was appointed as required by law. It guides and assists Council with audits and financial management.

Cr Tina Klein

Cr Michelle Stubbs

Cr Mark Devlin

Cr Lou Magro

Cr Barry McKenna

Deputy

THE STRATEGIC AND SECONDARY WASTE TREATMENT COMMITTEE (SSWTC) The SSWTC is comprised of the members of TAC and a Councillor from each member Council. The SSWTC meets to review and progress resource recovery activities for the region.

Cr Terry Kenyon

Cr Glenys Godfrey

Cr Marion Blair

Deputy

Cr Janet Powell Deputy

ELECTED REPRESENTATIVES EMRC’s Establishment Agreement specifies that two Councillors from each member Council be appointed to the EMRC Council, whilst a third Councillor is appointed to deputise in their absence. At 30 June 2005, the appointed Council members include: Cr Elizabeth Taylor, Shire of Kalamunda Cr Pauline Tonkin, Shire of Kalamunda Cr Sue Blair, Shire of Kalamunda (Deputy) Cr John Beaton, Shire of Mundaring (Chairman) Cr David Lavell, Shire of Mundaring Cr Tony Cuccaro, Shire of Mundaring (Deputy) Cr David Fardig, City of Swan (Deputy Chairman) Cr Todd Jones, City of Swan Cr Charlie Zannino, City of Swan (Deputy)

Cr Tina Klein, Town of Bassendean Cr Michelle Stubbs, Town of Bassendean Cr Mark Devlin, Town of Bassendean (Deputy) Cr Lou Magro, City of Bayswater Cr Barry McKenna, City of Bayswater Cr Terry Kenyon, City of Bayswater (Deputy) Cr Glenys Godfrey, City of Belmont Cr Marion Blair, City of Belmont Cr Janet Powell, City of Belmont (Deputy)

Cr Elizabeth Taylor

Cr David Lavell

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Cr Pauline Tonkin

Cr Tony Cuccaro

Cr David Fardig

Deputy

Deputy Chairman

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Cr Sue Blair

Cr John Beaton

Deputy

Chairman

Cr Todd Jones

Cr Charlie Zannino Deputy

Annual Report 2005


GOVERNANCE AND CORPORATE SERVICES The Governance and Corporate Services Team provides administrative, organisational development, human resources, information technology, financial management and marketing and communication support services to the organisation, and ensure that EMRC’s operations comply with statutory requirements.

2004-05 HIGHLIGHTS AND ACHIEVEMENTS

A total of $11,143 was awarded to 13 groups that received funding under the 2004-05 programme:

A key focus of the Team during the year was the continued development of the EMRC strategic framework, which has been used for the preparation of the organisation’s:

1st Gidgegannup Scout Group 1st Mundaring Scout Group East Gidgegannup Volunteer Bush Fire Brigade Gidgegannup Agricultural Society Inc Gidgegannup Community Website Inc Gidgegannup Junior Football Club Gidgegannup Netball Club Gidgegannup Parents and Citizens Association Gidgegannup Playgroup Inc Gidgegannup Progress Association Inc Parkerville Childrens Home Parkerville Volunteer Bush Fire Brigade Wooroloo Brook Land Conservation District Committee The continued high standards of the EMRC’s corporate governance function were further supported with the draft terms of reference for an internal audit committee being adopted by Council in May 2005. A comprehensive compliance checklist of the requirements under the Local Government Act was also completed and will be implemented in the 2005-06 financial year.

Strategic Plan Principal Activity Plan Individual Business Unit Plans Annual Budget Strategic and Business Plan actions have been successfully integrated with individual staff Personal Commitment Plans to ensure that they align with and support EMRC’s strategic outcomes and objectives. Innovative business planning software has been utilised to improve monitoring and progress reporting to stakeholders. A revised five year financial plan was developed and used as a basis for the preparation and presentation of the 2005-06 draft budget. As part of facilitating continuous organisational improvement programmes, three member Councils (Bassendean, Kalamunda and Swan) and the EMRC completed a series of Excellence in Local Government workshops that support the adoption of the principles behind the Australian Business Excellence Framework. Corporate Services also played an important role in the promotion of regional initiatives throughout the year. Key projects undertaken include the development of public relations opportunities, production of EMRC’s newsletter, compilation of award submissions, and coordination of sponsorship opportunities. Another successful Community Grants Programme was conducted in 2004-05 to support community groups in the vicinity of the Red Hill Waste Management Facility. EMRC has provided more than $90,000 to assist a diverse range of local community groups since commencing the programme in 1997.

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RECORDS MANAGEMENT The EMRC is committed to providing compliant record keeping practices in accordance with its Record Keeping Plan. In August 2004, EMRC’s Record Keeping Plan was formally approved by the State Records Commission for a period of three years. Document Manager is EMRC’s primary electronic document management system. It was introduced in July 2003. Since its inception staff members have saved over 40,000 documents into its two repositories. Records Management Training forms part of the induction process for all new staff members and this includes being informed of their responsibilities for corporate record keeping. The Records Officer also provides a helpdesk for all Document Manager users.

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“A key focus of the Team during the year was the continued development of the EMRC's strategic framework.”


WASTE MANAGEMENT AND ENGINEERING The Waste Management and Engineering Team manage and operate the Red Hill Waste Management Facility in such a way as to minimise the environmental impacts of waste disposal, minimise the environmental impacts of regional soil contamination and improve member Council and EMRC financial viability.

2004-05 HIGHLIGHTS AND ACHIEVEMENTS In addition to the day-to-day business of accepting Municipal Solid Waste (MSW) from member Councils and commercial waste from the private sector, a number of initiatives, developed in previous years, have been maintained to reduce the environmental impact of waste disposal and soil contamination. The greenwaste processing area enabled over 12,000 tonnes of greenwaste to be diverted from landfill and work has continued to develop products that comply with AS4454-2003 (composts, soil conditioners and mulches). Mulch produced on site has been used to construct contour banks on the capped areas of Stage 9 of the Class III landfill and such contour banks are more effective than the clay contour banks previously used. Trials using compost and clay for broad acre farming have been initiated and these will continue in 2005-06. The area licensed by the Department of Environment to undertake soil remediation, provides member Councils and others in the region with the capacity to remediate acid sulphate soils and other contaminated soils that are capable of being treated. Contaminated soils that can not be remediated economically will continue to be accepted into the Class IV cell. Material from contaminated sites in Midland and East Perth were received during the year, enabling remediated sites to be put to good use. The concrete encapsulation service was extensively used and Red Hill has been featured in the BRITE (Building Research Innovation Technology Environment) Report,

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produced by the ‘Cooperative Research Centre for Conservation Innovation’, for the work done on material from the Imago site that also won a Case Earth Award. The collection of household hazardous wastes from residents in the region has been expanded as part of the EMRC’s partnership with member Councils in regional waste management projects. Each month, collections are undertaken at one of the member Council depots. This gave residents the opportunity to take their household hazardous materials to their local Council depot twice a year, rather than put the material in the bin where it may cause harm. During 2004-05, drumMUSTER collections of farm chemical containers were continued and the School Dry Cell Battery Collection Programme expanded. Methane gas collection and electricity generation utilising the gas was also expanded with additional gas wells installed to Stages 8 and 9 of the Class III cells. This led to approximately 16,500 mega watt hours being supplied to the electricity grid. Filling to Stage 10 of the Class III cell began during the year. Work on the design for Stage 2 of the Class IV cell has been undertaken by EMRC staff with the assistance of specialist consultants. The cell will incorporate world best practice liner, leachate and collection technologies. Following the re-zoning of a large portion of Red Hill farm to allow for further waste management activities, an extensive drilling programme was commenced to source underground water and gain more information on the geology of the site. A report to obtain environmental approval to utilise the site has also been commissioned.

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“A number of initiatives have been maintained to reduce the environmental impact of waste disposal and soil contamination.”


ENVIRONMENTAL SERVICES The Environmental Services Team strives for the achievement of measurable and sustainable benefits through developing strong partnerships and building positive working relationships with member Councils and other stakeholders. The Team’s approach to environmental sustainability is supported by key outcome objectives related to improving air and water quality, maintaining regional biodiversity and minimising the environmental impact of waste and regional contamination.

2004-05 HIGHLIGHTS AND ACHIEVEMENTS

GREENHOUSE GAS EMISSIONS AND CLIMATE CHANGE

During the course of the last year, the Team has provided on-going Environmental Officer support for member Councils working on a range of activities related to environmental impact assessments, environmental management plans, advisory committee support and community consultation for environmental activities.

EMRC is also tackling the emerging issue of global warming associated with greenhouse gas emissions through an air quality improvement project, which is aimed at energy efficiency.

The level of environmental consulting activity has continued to expand in the region, as member Councils have increased interest and involvement in environmental issues and strategies. The environmental consulting service has provided additional resources to assist member Councils address environmental management needs in a professional and coordinated manner. As part of its regional environmental advisory role to member Councils, the Environmental Services Team has also prepared submissions on environmental initiatives and strategies that impact on the region, such as the Draft Swan Region Strategy for Natural Resource Management Investment Plan, Swan and Canning Rivers Management Bill, Contaminated Sites legislation, Vegetation Clearing Regulations and draft chapters of the Stormwater Management Manual for Western Australia. The Environmental Service has continued to provide environmental management support for the Red Hill Waste Management Facility in areas such as waste acceptance approvals, compliance reporting, national pollutant inventory, environmental monitoring, rehabilitation and the development of operating procedures related to the Environmental Management System (EMS).

“Many projects extend across more than one Council area, allowing for the sharing of ideas and resources to achieve a common goal.”

The Team has also been involved in a number of regional projects on behalf of EMRC member Councils and other Local Governments. Many projects extended across more than one Council area, allowing for the sharing of ideas and resources to achieve a common goal. In terms of improving air and water quality, the Team has been actively working towards this outcome objective through a range of projects.

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The Cities for Climate Protection (CCP) Programme has resulted in EMRC assisting member Councils to implement their corporate greenhouse reduction action plans and educate residents on practical ways in which they can reduce energy use in the home. The majority of member Councils participating in the programme have completed Milestone 5 and are progressing toward the next phase of the programme, known as CCP Plus. The EMRC, on behalf of the member Councils, also coordinated the preparation of a funding application entitled “Solar Cities Residential Project” that seeks to create a residential renewable energy marketplace in Perth’s Eastern Region.

NATURAL RESOURCE MANAGEMENT PROJECT The Local Government Natural Resource Management (NRM) Policy Development Project is an example of EMRC using funding provided by the State Government to work with Local Governments to improve the health of the Swan River and its catchment. In partnership with the Swan River Trust, this water quality improvement initiative is coordinated by EMRC and involves 11 Councils. The project has continued to develop the Local Government NRM Manual, which incorporates improved environmental management outcomes in both land use planning and operational activities. The Local Government NRM Manual provides tailored information to Local Governments on a range of best practice planning and management techniques aimed at reducing nutrient export to the river system. Examples of policies and guidelines developed in the past year include Foreshore Management, Small Rural Properties and Waste Management. (continued over page)

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EASTERN HILLS CATCHMENT MANAGEMENT PROGRAMME The Eastern Hills Catchment Management Programme (EHCMP) is an initiative aimed at improving land and water quality, and maintaining biodiversity. This demonstrates EMRC’s ability to draw together a range of stakeholders to achieve common outcomes for protecting and managing the environment. Due to significant changes over the last 18 months in the way Natural Heritage Trust (NHT) funding is delivered throughout Australia, and the identification of the EHCMP as a formal Sub-region of the Swan NRM Region, in 2004-05 the EMRC established a new team of professional staff to progress NRM activities in the Eastern Hills Sub-region. The primary aim of the Eastern Hills Sub-region is to develop and implement a Sub-regional Implementation Plan that seeks to meet the objectives and outcomes associated with the recently accredited Swan Region Strategy for NRM, prepared by the Swan Catchment Council in consultation with the Swan River Trust, the community and Local Governments. The new team represents an improved level of service to member Councils, through the ongoing placement of staff within key Council service areas. In addition, EHCMP is well placed to represent member Council interests and perspectives in regional NRM forums. Working closely with the Eastern Hills Community Landcare network, through six catchment groups and two Land Conservation District Committees, EHCMP coordinates a range of activities in partnership with the member Councils. Water, natural diversity and sustainable production are the natural resource focuses of a series of assessment, planning, implementation and monitoring activities. With ongoing funding received from NHT and assistance provided by the Shires of Kalamunda and Mundaring and the City of Swan, the programme is widely recognised as one of the most successful in the Swan region.

PERTH BIODIVERSITY PROJECT Maintaining biodiversity is a key focus for a range of environmental projects in the region and one of EMRC’s key outcome objectives. Perth’s Eastern Region hosts a diverse and unique array of native plants and animals that contribute to WA’s south-west being recognised as one of the world’s 25 biodiversity hotspots. EMRC and the member Councils are partners in the Perth Biodiversity Project, which is coordinated by the Western Australian Local Government Association. The project enhances the capacity of Local Government to actively protect and manage our local natural areas and the animals and plants that depend upon these ecosystems. The EMRC will be working with member Councils over the coming years to develop and implement local biodiversity planning guidelines prepared by the Perth Biodiversity Project.

Annual Report 2005

REGIONAL DEVELOPMENT The Regional Development team works closely with member Councils and regional stakeholders to: Encourage economic development in the region Create new investment opportunities and sustainable economic growth and employment opportunities Facilitate the growth of tourism development in the region Increase community participation in arts, culture and recreation opportunities

2004-05 HIGHLIGHTS AND ACHIEVEMENTS

develop new export markets and promote Perth’s Eastern Region as an ideal investment and tourism destination.

During the last 12 months, the Regional Development Team has continued to concentrate its efforts towards initiatives that make Perth’s Eastern Region an ideal business, investment and tourism destination.

While the trade mission did not take place as originally scheduled, EMRC has since engaged an Economic Advisor/Interpreter to undertake a vital project management role to assist the delegation develop trade opportunities for its mission to Japan in early 2006.

INDUSTRY CLUSTERS PROJECT Based on research conducted in recent years, Regional Development commenced the process of establishing clusters for Perth’s Eastern Region. Two important industry sectors - mining and technology services, and the heavy machinery and equipment manufacturing sector will be engaged in facilitation workshops to establish business growth inhibitors, opportunities for collaboration, employment and training needs, and market development opportunities. Business networks, or industry clusters are groups of similar or related businesses forming networks to work together in order to increase competitiveness and accelerate business growth. Ernst & Young have been appointed as managing consultants for the Industry Clusters Project with funding provided by the Australian Government - the Department of Transport and Regional Services through their Regional Partnerships Programme, the Department of Industry and Resources WA and the six member Councils. The project is also supported by the Chamber of Commerce and Industry WA, the Chamber of Minerals and Energy and the North East Metropolitan Chamber of Commerce. Key recommendations on the study will be provided in late 2005.

ADACHI-KU DELEGATION The EMRC is committed to developing relationships with international governments as a way to stimulate economic growth and investment opportunities for Perth’s Eastern Region. Local businesses in the region were targeted in late 2004 to join EMRC on a trade mission to Adachi-ku, Japan to develop stronger ties and explore new partnerships,

REGIONAL INTEGRATED TRANSPORT STRATEGY A preliminary review of transport infrastructure initiated by the member Councils, led to the EMRC, member Councils, and the Department of Planning and Infrastructure identifying the need for development of a comprehensive Regional Integrated Transport Strategy. The Regional Integrated Transport Strategy was advertised by public tender in December 2004, with ARRB Group awarded the contract to develop a strategy, that on completion, will provide a ‘blueprint’ for the development of transport infrastructure in Perth’s Eastern Region over the next 20 years.

SWAN RIVER CONCEPT PLAN AND MANAGEMENT STRATEGY The member Councils recognise the importance of the Swan River as the region’s significant natural asset and wish to develop a strategy to enhance its environmental, social and economic value to Perth’s Eastern Region. Initial research undertaken by EMRC in early 2004 identified a range of sites located within the region that already contribute, or have the potential to contribute, to these regional values. EMRC advertised a public tender in February 2005 to engage consultant(s) to assist with developing a concept plan for the Swan River and its environs, in the four Council areas of Bassendean, Bayswater, Belmont and Swan, that will provide a shared vision for the Swan River in the region. Hassell Pty Ltd have been appointed by EMRC to develop the overarching Swan River Concept Plan and Management Strategy. (continued over page)

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RAPID Facilitated by EMRC, the RAPID (Recreation, Advice, Promotion and Inclusion for People with Disabilities) Programme came to an end on 30 June 2005. RAPID delivered support to people with disabilities residing in the Cities of Belmont and Swan, as well as providing general assistance and advice to 105 residents from other member Council areas.

REGIONAL TOURISM INITIATIVES The EMRC’s Regional Tourism Strategy entered its seventh year, and during the year completed many exciting initiatives that continue to promote Perth’s Eastern Region as an ideal destination to local residents, and interstate and overseas visitors. Some of the projects undertaken in 2004-05 include:

“The Regional Development Team continues to work in responding to the needs of member Councils and the region...”

Progressing towards completion of The Perth Hills and Swan Valley Trails Discovery Guide booklet and website (www.perthtrails.com.au), for their respective launch scheduled in October 2005. The aim of the project has been to increase visitor numbers and spend in the region, by promoting the 40 or more trails across three Council areas, and link them directly to the extensive tourism opportunities available in close proximity to the trails. The Guide is a major collaborative initiative made possible by support and funding from EMRC, Shires of Kalamunda and Mundaring, City of Swan, the Department of Conservation and Land Management (CALM), LotteryWest and the Department of Sport and Recreation. Production of the Annual Events Calendar, which includes nature-based recreational and tourism attractions in the region. The size of the calendar and print run was increased to meet demand from the public and to cater for the vast array of events held in the region. Updating the Perth Tourism website (www.perthtourism.com.au) with innovative improvements that better showcase Perth’s Eastern Region through advanced database search facilities and free self-managed tourism operator listings, all presented in an easy-to-use, visually appealing format. The continued development of an annual visitor research programme, with input and advice from key tourism and Council stakeholders. Increased support for the 33rd Avon Descent by providing spectator infrastructure and facilitating a joint application to LotteryWest for funding the Councils Community and Family Fun Days.

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Regional promotion of the sixth Perth’s Eastern Autumn Festival programme of events, through an extensive radio and public relations campaign. EMRC’s continued support for the Swan Valley and Eastern Region Visitors Centre, including holding a position on the Board to provide regional input on a bi-monthly basis. The Tourism Development Team’s continued involvement in the Perth Hills Precinct marketing and publicity programme in partnership with the Shires of Kalamunda and Mundaring. Although the project coordination role was taken over by the Implementation Working Group (IWG) and the new Strategic Marketing Committee, EMRC continues to have a presence on the IWG. The Regional Development Team continues to work in responding to the needs of member Councils and the region, in implementing the Regional Tourism Strategy and key regional economic development initiatives.

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RISK MANAGEMENT SERVICES The Risk Management Services Team assists member Councils and other clients to prevent accidents, injuries and losses in their workplaces. It does this by helping to identify risks and develop practical plans to deal with them. Operating since 1993, the Service delivers safety and risk management training courses as well as providing consultancy services to meet the individual needs of clients. The training courses equip staff with the skills they need to deal with the hazards they face in the workplace, whilst the Team’s consulting work supports the development of the client’s risk management plans and helps them stay abreast of legislative changes and new safety related practices.

2004-05 HIGHLIGHTS AND ACHIEVEMENTS During the year the Risk Management Team continued to supply a range of valuable training and consulting services to both member and client Councils, as well as within the organisation. While the traditional training courses, such as Safety Inductions, Manual Handling, Chemical Safety and Traffic Management were offered, two new training options were developed; these being in the area of Risk Management for Public Events and a formal course for Landcare Volunteers. Regarding Traffic Management training, EMRC is one of four Registered Training Organisations, which is authorised by Main Roads WA to deliver the new three-day Advanced Worksite Traffic Management course. There has been much deliberation regarding State based (basic level) traffic management training during the year and the issue is still unresolved. The services provided by the Team have facilitated a 15% drop in the number of workers compensation claims for the six member Councils, as well a substantial drop in claims costs. For some of the Councils, there has been extensive work carried out on safety systems to prepare these Councils for future WorkSafe Award assessments. The application of broad-spectrum risk management principles amongst the member Councils has been more evident during the year and this has fostered a heightened interest in the development of Risk Registers. Facilitating the development of these Registers will continue to be a focus during the 2005-06 year. With respect to EMRC itself, the Safety Advisory Committee and Risk Management Co-ordination Committee have again been instrumental in driving the reduction of risk within the EMRC’s operations. The EMRC had three workers compensation claims for the year, compared to six in 2003-04.

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The EMRC Risk Management Safety Handbook was updated during the year and continues to be a popular tool used by both member and non-member Councils throughout Western Australia. Just under a thousand copies were sold throughout the year, and these have proven to be an important element of the induction process for more than 20 Councils. The EMRC Inter-Council Comparison Scheme continued to benchmark performance in the area of injury prevention and fleet accidents. The number of Councils participating in the scheme remains at 17, with a new Council scheduled to join the Scheme later in 2005. This Scheme provides Local Government with a valuable yard-stick against which to measure the performance of individual Councils. While not fixing any risk problems, the process has shown itself to be a valuable tool in motivating management to direct more of their time and effort toward risk management matters. A special project, essentially completed during the year, was the development of a new Occupational Health and Safety (OH&S) Code of Practice for the Waste Management Association Australia (WA). This required input from all Risk Management staff and helped to consolidate the expertise the Service has in this area. With a staffing level that now offers greater specialisation and flexibility for the client base, the coming year will see services more tailored to meet the specific needs of member Councils and other clients. Other specific new service options will be offered, such as the new mandatory WorkSafe Construction Worker Safety Training. These services will support more focused programmes, which will result in fewer injuries and reduced accident costs.

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“The Risk Management Services Team assists member Councils and other clients to prevent accidents, injuries and losses in their workplaces.”


RESOURCE RECOVERY PROJECT The Resource Recovery Project Team is working to develop and implement a resource recovery system that recognises the importance of waste minimisation, and maximises social, environmental and economic benefits to the region. The Project’s key objective is to have a fully operational resource recovery solution in place by 2010 or sooner which would involve a resource recovery facility and/or resource recovery park. Completion of the six local Community Information and Feedback sessions Development of the EMRC Participant Consultation Programme Completion of round one of the member Council Consultation Programme Completion of the Task 2 report – Preliminary Technical and Financial Assessment Commencement of Task 7 – Financial Models Market research on community attitudes to waste management Monthly reporting by the consultant Monthly meetings of the Project Advisory Group which involves the TAC Officers In order to engage the residents of Perth’s Eastern Region through the Community Consultation Programme, the R-Gang website (www.rgang.org.au) has been updated, information packs prepared, a press release was issued announcing the commencement of the consultation process and advertisements were placed in community newspapers about the six local Community Information and Feedback Sessions.

2004-05 HIGHLIGHTS AND ACHIEVEMENTS After re-tendering the contract for the Project’s consultancy services, Council resolved to award the contract to Cardno BSD Meinhardt Joint Venture in September 2004, with the exception of the contract administration task which will be re-tendered at a later date. The contract value is between $727,000 and $849,000 (ex GST) depending upon the type of contract for the resource recovery facility. Cardno BSD Meinhardt commenced work on the consultancy contract in December 2004. Completion of the various tasks is expected to take until 2010-11. Work completed or underway includes the following:

The concept study for a resource recovery park at Hazelmere was finalised during the year and reported to the SSWTC and Council. The results from this study by Envision NZ provide important input to the main consultancy contract. In May 2005, Envision NZ coordinated a study tour of resource recovery parks in the eastern states of Australia which the Project Development Manager attended and reported on to committee and Council.

WASTE MANAGEMENT COMMUNITY REFERENCE GROUP The Waste Management Community Reference Group (WMCRG) has continued to provide input and advice to the EMRC on waste management and waste education issues. The WMCRG is made up of 13 members of the eastern region community. In the past year a new member from Belmont was appointed to the WMCRG to replace a member who resigned. During the 2004-05 year, the WMCRG met four times to provide community feedback on current and future waste management projects. Members also participated in: The 2004 Waste and Recycle Conference Project briefings by consultants Cardno BSD Meinhardt Joint Venture Waste education strategy workshop held by Mindarie Regional Council EMRC waste audit results briefing The Houghton’s Jazz and Wine Picnic as volunteers to monitor recycling and litter Two workshops on the proposed regional waste education strategy

Other activities completed during the year include: An audit of the member Council waste stream by Anne Prince Consultants An audit of the member Council recycling bins by Dallywater Consultants Continued involvement in the Southern Metropolitan

Development of the Project Management Plan and Project Schedule Development of the Community Consultation Programme

Annual Report 2005

The next stage of the Community Consultation Programme will be the two regional workshops to be held in October 2005 and February 2006. These workshops will identify key issues and concerns, develop evaluation criteria and weightings, and recommend preferred solutions.

Regional Council’s Compost Steering committee to oversee the development and marketing of the regional resource recovery centre compost Continuation of the SSWTC which is involved in the development of the Project and informed of progress in resource recovery activities in Australia and elsewhere Attendance at the 2004 Waste and Recycle Conference

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Annual Report 2005


STATUTORY REPORTS STATUTORY COMPLIANCE RETURN

PAYMENTS TO EMPLOYEES

The Statutory Compliance Return for the period 1 January 2004 to 31 December 2004 was completed and lodged as required. Council was able to advise that it achieved a high level of compliance with all matters applicable to EMRC operations.

The Local Government (Administration) Regulations 1996 prescribes under s19B that for the purposes of s.5.53(2g) of the Local Government Act 1995, the annual report of a Local Government must contain the following information:

NATIONAL COMPETITION POLICY

(a) The number of EMRC employees entitled to an annual salary of $100,000 or more

The Competition Principles Agreement (CPA) is a contractual agreement between the Federal Government and all State and Territory Governments. As a result, Local Government is committed to the CPA.

2 staff members

$100,000 – $110,000

$130,000 – $140,000

The CPA aims to ensure that all public enterprises operate in a transparent manner and in the best interests of the public. Under the CPA public enterprises are required to review their operations to ensure they have no competitive advantage, or disadvantage, in comparison to the private sector.

(b) The number of those employees with an annual salary entitlement that falls within each band of $10,000 over $100,000

The EMRC supports the CPA concept. As such, a cost benefit analysis of our operations was conducted. The analysis concluded that none of our core services – operation of the Red Hill Waste Management Facility, Occupational Health and Safety Services, and Environmental Services – should be subject to Competitive Neutrality Principles.

Section 5.53(2e) of the Local Government Act 1995 requires Local Governments to provide an overview of the plan for the future of the district, made in accordance with s.5.56, including major initiatives that are proposed to commence or to continue in the next financial year.

Furthermore, the EMRC has not received notification that the Australian Bureau of Statistics has classified any of our operations as either Public Trading or Public Financial Enterprises. No allegations of non-compliance with the principles have been made against the EMRC.

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PLAN FOR THE FUTURE

The Local Government (Administration) Regulations 1996, s19C(9) Planning for the future – s.5.56 states that a Local Government is to ensure that a plan for the future, made in accordance with this regulation, applies in respect of each financial year after the financial year ending 30 June 2006. Therefore, EMRC’s Five Year Financial Plan is detailed on the following page to outline the operating income and expenditure for the period 2004-05 to 2009-10.

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Annual Report 2005


FIVE YEAR FINANCIAL PLAN BUDGET FORECAST 2004/2005 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 Financial Summary

Operating Income Operating Expenditure Normal Operating Result

($10,010,425) ($10,216,940) ($10,597,577) ($10,864,570) ($10,679,425) ($10,986,324) ($11,310,887) $10,329,552 $10,341,502 $10,429,799 $10,319,531 $10,204,221 $10,279,606 $10,033,078 $319,127

$124,562

($167,778)

Other Income Other Expenditure

($3,559,496) ($4,420,963) $1,259,665 $1,889,891

(3,572,977) $881,636

Change in net assets from operations

($1,980,704) ($2,406,510) ($2,859,119) ($3,846,880) ($3,454,665) ($3,934,571) ($4,219,465)

Capital Expenditure

$5,619,400

$3,617,820

$3,835,700

Net Operating and Capital Expenditure

$3,638,696

$1,211,310

$976,581

($545,039)

($475,205)

($706,717) ($1,277,809)

($4,012,519) ($3,760,843) ($4,338,797) ($4,033,641) $710,677 $781,383 $1,110,943 $1,091,985

$3,757,500

$1,277,300

$1,558,500 $11,303,000

($89,380) ($2,177,365) ($2,376,071)

$7,083,535

Please note that all future year financial details are presented in 2005/2006 values.

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Annual Report 2005


Annual Report 2005

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Annual Report 2005


OPERATING STATEMENT

STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 30 JUNE 2005

AS AT 30 JUNE 2005

ACTUAL 2004/2005 $

BUDGET 2004/2005 $

ACTUAL 2003/2004 $

526,145 819,036 10,123,196 1,734,028

548,247 624,902 10,250,931 2,145,841

199,117 673,371 10,313,640 1,833,234

13,202,405

13,569,921

13,019,362

OPERATING REVENUE

ACTUAL 2004/2005 $

ACTUAL 2003/2004 $

987,257 15,801,338 1,187,942 21,046 20,835

1,493,931 12,833,589 1,092,473 18,656 26,291

18,018,418

15,464,940

559,177 643,306 284,370

730,030 545,368 267,318

1,486,853 16,531,565

1,542,716 13,922,224

5,452,708 2,656,335 2,399,159 1,572,251 406,060 118,780 126,416

4,761,459 2,867,252 3,177,266 1,530,334 410,151 113,242 37,282

12,731,709

12,896,986

CURRENT ASSETS

Governance General Purpose Funding Community Amenities Other Property and Services

Total Revenue from Ordinary Activities

Cash Assets Investments Receivables Inventory Prepayments

Total Current Assets OPERATING EXPENSES Governance Community Amenities Other Property and Services Economic Services

Total Expenses from Ordinary Activities Change in Net Assets from Operations

1,655,953 6,548,050 2,321,498 28,681

1,764,627 7,223,132 2,570,458 31,000

1,377,631 6,680,696 2,021,553 0

10,554,182 2,648,223

11,589,217 1,980,704

10,079,880 2,939,482

CURRENT LIABILITIES Payables Provisions Interest Bearing Liabilities

Total Current Liabilities Net Current Assets NON CURRENT ASSETS Land Buildings Structures Plant Equipment Furniture and Fittings Work in Progress

Total Non Current Assets NON CURRENT LIABILITIES Provisions Interest Bearing Liabilities

Total Non Current Liabilities Net Assets

809,697 624,312

729,487 908,682

1,434,009 27,829,265

1,638,169 25,181,041

12,762,031 14,947,340 119,894

13,012,023 12,049,124 119,894

27,829,265

25,181,041

EQUITY Accumulated Surplus Cash Backed Reserves AAS27 Adjustments

Total Equity

Annual Report 2005

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Annual Report 2005


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2005

ACTUAL 2004/2005 $

ACTUAL 2003/2004 $

13,012,023 2,648,223 1,459,390 (4,357,605)

11,886,607 2,939,482 3,796,328 (5,610,394)

12,762,031

13,012,023

ACCUMULATED SURPLUS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005

ACTUAL 2004/2005 $

BUDGET 2004/2005 $

ACTUAL 2003/2004 $

Cash receipts in the course of normal operations Cash payments in the course of normal operations Interest receipts - Municipal Cash Interest payments - Loan Ascot Place

10,622,300 (9,092,333) 132,893 (69,721)

10,330,754 (8,291,129) 79,671 (62,300)

10,103,770 (7,717,031) 130,411 (85,750)

Net Cash Provided by Normal Operating Activities

1,593,139

2,056,996

2,431,400

2,366,704 0 (428,847) 292,195

2,080,665 100 (667,727) 229,638

2,089,765 12,735 (274,977) 165,026

CASH FLOWS FROM NORMAL OPERATING

Balance at the beginning of the year Change in net assets from operations Transfer from Reserves Transfer to Reserves

Balance at the end of year RESERVES - CASH BACKED

CASH FLOWS FROM OTHER OPERATING

Balance at the beginning of the year Amount transferred from accumulated surplus Amount transferred to accumulated surplus

Balance at the end of the year

12,049,125 4,357,605 (1,459,390)

10,235,058 5,610,394 (3,796,328)

14,947,340

12,049,124

AAS27 ADJUSTMENTS Balance at the beginning of the year

Balance at the end of year Total Equity

119,894

119,894

119,894 27,829,265

119,894 25,181,041

Resource Recovery Cash receipts from secondary waste charge Cash receipts from resource recovery project Cash payments for resource recovery project Interest receipts - secondary waste restricted Other Activities Interest receipts - other restricted investments

Net Cash Provided by Other Operating Activities Net Cash Provided by Operating Activities

393,948

315,593

377,934

2,624,000 4,217,139

1,958,269 4,015,265

2,370,483 4,801,883

451,315 (1,940,061)

933,500 (5,619,400)

522,682 (3,756,199)

(1,488,746)

(4,685,900)

(3,233,517)

CASH FLOWS FROM INVESTING ACTIVITIES Cash receipts from sale of assets Cash payments for acquisition of assets

Net Cash Provided by Investing Activities CASH FLOWS FROM FINANCE ACTIVITIES Cash payments - loan principal repayments

Net Cash Used in Financing Activities

(267,318)

(267,319)

(251,290)

(267,318)

(267,319)

(251,290)

SUMMARY OF CASH FLOWS Cash at the beginning of the year Net Increase (Decrease) in Cash Held

Cash at the end of the year

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14,327,520 2,461,075

14,327,520 (937,954)

13,010,444 1,317,076

16,788,595

13,389,566

14,327,520

Annual Report 2005


NOTES FOR CONCISE FINANCIAL REPORT OPERATING STATEMENT Total Operating Revenue of $13,202,405 as at 30 June 2005 is approximately $183,000 greater than the 2003-04 actual operating revenue and approximately $368,000 below budgeted provisions. Total Operating Expenses of $10,554,182 are approximately $474,000 greater than the 2003-04 actual operating expenses and approximately $1,035,000 below budget for 2004-05. The overall change in net assets resulting from operations of $2,648,223 is approximately $291,000 less than the level of 2003-04 and approximately $667,000 greater than the 2004-05 budget.

STATEMENT OF FINANCIAL POSITION The value of land as at 30 June 2005 reflects an increase of approximately $691,000 from the stated value as at 30 June 2004. This is predominantly as a result of buffer land purchased adjoining the Red Hill site. The value of buildings reflects a decrease of approximately $211,000 from the previous year. This is attributable primarily to the depreciation of buildings during the year together with the demolition, and subsequent write-off (approximately $94,000), of the house that was located at 222 Great Eastern Highway (adjoining the EMRC administration building) in preparation for the construction of a car parking area. The value of structures reflects a decrease of approximately $778,000 from the stated value as at 30 June 2004. This is mainly attributable to the writtendown (depreciated) value of the Class III Stage 10 and Class IV waste disposal cells (approximately $637,000). This value is calculated based on the percentage of usage during the year compared to the total capacity of the waste disposal cell.

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Current liabilities as at 30 June 2005 have decreased approximately $56,000 in comparison to the level stated as at 30 June 2004. Current assets as at 30 June 2005 have increased approximately $2,553,000 in comparison to the level stated as at 30 June 2004. This relates to increased cash receipts from operations. Overall equity has increased during the 2004-05 financial year by $2,648,224 to $27,829,265.

STATEMENT OF CASH FLOWS The cash flows used in investing activities for 2004-05 reflects a decrease of approximately $1,816,000 capital expenditure from the 2003-04 financial year. Net Cash provided by Operating Activities of $4,217,139 reflects a decrease of $584,744 from the 2003-04 value of $4,801,883. The overall impact on the cash position at the close of the financial year is an increase of $2,461,075 to $16,788,595. This is represented by restricted cash and investments of $15,126,895 and unrestricted cash and investments totalling $1,661,700.

CONCISE FINANCIAL REPORT The concise financial report can not be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the EMRC as the full financial report. Further financial information can be obtained from the full financial report on request to the EMRC.

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Annual Report 2005


VISION

To be a responsive and innovative leader in assisting the Eastern Metropolitan Region to be a great place to live, work, play and do business.

MISSION

The Eastern Metropolitan Regional Council, by partnering with member Councils, and other stakeholders, facilitates strategies and actions for the benefit and sustainability of the region.

www.emrc.org.au

Annual Report 2005

2004/2005 EMRC Annual Report  

2004/2005 EMRC Annual Report

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