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ANNUAL REPORT

Eastern Metropolitan Regional Council

05/06

QUINNS ROCK

JOONDALUP WUNDOWIE

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PAKER M LAND STIRLING

MORLEY EY

Ba nd Bassen Bassend ndean

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Bayswaterr Bay PERTH

Belmont

Kalaamu CANNINGT NGT TON

FREMANTLE

ARM RMADALE


EMRC ANNUAL REPORT 2005 / 2006

01 WHO WE ARE The Eastern Metropolitan Regional Council (EMRC) is a progressive and innovative regional local government working on behalf of six member Councils – 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 a Council consisting of two Councillors and one deputy from each member Council. The Council works through approximately 70 skilled and dedicated staff who work across three divisions: Corporate Services, Waste Management Services and Regional Services, as well as a separate Resource Recovery Project unit.

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 The 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 project 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.

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. With population growth forecast to be around 8% per annum over the next 10 years, it is one of the fastest growing regions in Western Australia. This growth has led 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 Western Australia with the east coast of Australia. This coupled with the region’s proximity to the Perth 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.

CONTENTS

Chairman’s Report

3

C.E.O’s Overview

5

Organisation Structure

7

Committees

8

Elected Representatives

8

Corporate Services

11

Waste Management Services

15

Regional Services

17

- Environmental Services

17

- Regional Development

21

- Risk Management Services

27

Resource Recovery Project

29

Statutory Reports

31

Five Year Financial Plan

33

Financial Reports

34

Notes for Concise Financial Report

40


EMRC ANNUAL REPORT 2005 / 2006

CHAIRMAN’S REPORT At a time when local government in Western Australia faces challenges in meeting growing community expectations to expand the range and quality of services, the EMRC and member Councils are leading the way in resource sharing, by increasing capacity and efficiency through the collaborative approach we take.

In early January, I travelled with an EMRC delegation to Adachi-ku in Japan. The City of Belmont asked the EMRC to expand their sister-city relationship with Adachi-ku, from cultural and student exchange to trade and business exchange. The delegation established valuable business and working relationships. The EMRC was offered promotional and business exchange opportunities, which will be progressed over the next two years. One of the promotional opportunities is screening a video promoting Perth’s Eastern Region on the Adachi City Vision facility, a large digital screen located at a typically very busy Tokyo railway station.

A Memorandum of Understanding was signed between the EMRC and the International Council for Local Environmental Initiatives (ICLEI). ICLEI sought approval to use the EMRC’s regional approach to environmental issues as a model for introduction elsewhere in Australia and New Zealand.

It was great to see the Councils collaborate on so many projects throughout 2005/2006. Looking back, there are four key projects that the EMRC, with the member Councils, initiated that will have long-term benefits for the region’s sustainability. •

The EMRC worked with the City of Bayswater, City of Belmont and City of Swan, as well as two non-member Councils (Town of Northam and Shire of Toodyay) to prepare a submission to Lotterywest to help fund the Councils’ Community Fun Days, held over the Avon Descent weekend. This collaboration resulted in a $137,594 grant from Lotterywest. The EMRC and member Councils were part of the Perth Solar City Consortium seeking funding under the Australian Government’s Solar Cities Funding Programme. In May, I travelled to Canberra with the Perth Solar City Consortium to present our business case on why Perth’s Eastern Region will be an ideal location to host one of Australia’s first solar cities. My thanks to Councillors and Politicians who put their support behind the Perth bid. Fingers crossed for a successful announcement.

Thanks very much to all the elected representatives on the EMRC Council for their work over the last year. On behalf of my fellow Councillors I would like to thank the Chief Executive Officer, Mr Gavin Watters and the EMRC team for their continued commitment to the EMRC, the Councils and the region.

COUNCILLOR JOHN BEATON Chairman

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Since being elected as Chairman of the EMRC 12 months ago, I have seen the EMRC grow in its range of services and projects. The organisation is a responsive and innovative leader.


EMRC ANNUAL REPORT 2005 / 2006

CEO’S OVERVIEW This report outlines the achievements and financial performance of the EMRC in 2005/2006, during which the organisation continued to deliver and develop its portfolio of services and regional projects for the benefit and sustainability of Perth’s Eastern Region.

The leadership and guidance provided by the EMRC Council and committees.

Working in close consultation and partnership with the six member Councils.

Integrating strategic and business plan actions with staff personal commitment plans to ensure they support our strategic objectives.

A high standard of accountability and sound governance practices giving stakeholders confidence in Council’s decisions.

Innovative contracts with commercial waste operators.

The energies and motivation of all EMRC staff.

The departure of two Executive Managers during 2005 provided a timely opportunity to streamline and simplify the organisational structure. Previously we had operated with five divisions: Corporate Services, Environmental Services, Risk Management Services, Regional Development, and Engineering and Waste Management Services, as well as a separate Resource Recovery Project unit. This structure served the EMRC and member Councils well; however, the EMRC’s strong growth and increasing number of functions and processes, internal evidence and customer surveys indicated that some restructuring was required to ensure that we remain responsive and adaptive to the evolving needs of the member Councils.

Under the new structure, three services were amalgamated into one new division – Regional Services. The amalgamation of Environmental Services, Regional Development and Risk Management Services into one division further builds our customer relationships and customer needs management, and streamlines consultation and service delivery to ensure we meet the changing needs of the member Councils. During the year, Council adopted a strong and well structured Strategic Plan that responds to a challenging environment. The Plan included a clear short-term and long-term focus on the varied needs of the EMRC’s many stakeholders. The Strategic Plan is for the period 2005 to 2010 and provides a framework for undertaking a range of actions that will enable the EMRC’s vision for the future of Perth’s Eastern Region to be achieved. After an extensive tender process, Strahan Research was appointed in late 2005 to provide market research services for the organisation, including our Stakeholder Perception Survey. Findings from this year’s Stakeholder Perception Survey were very pleasing and will be used to improve our service delivery to the member Councils and guide the development of the organisation’s strategic, business and marketing planning.

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The key achievements highlighted throughout this year’s annual report can be attributed to:


EMRC ANNUAL REPORT 2005 / 2006

06 In the major area of Waste Management Services, there was a decrease in member Council tonnages disposed at the Red Hill Waste Management Facility; however, there was a 34.8% increase in total waste tonnages received. We made real progress in the community consultation phase of the Resource Recovery Project during the year. After extensive community consultation in each member Council area, two resource recovery regional workshops were attended by 87 community members who allocated weightings to selection criteria that will assist us in selecting a resource recovery solution for Perth’s Eastern Region. A phone survey of residents in the region was also conducted, with the overall results identical to those from the workshop, validating the technology and site ranking results. I would also like to thank the community volunteers who give up their time to serve on the EMRC’s Waste Management Community Reference Group and provide informed advice and feedback to the EMRC on waste management and waste education issues. Their dedication is greatly appreciated.

CONT.

This year also saw the retirement of Kevin Lang (Manager, Audit and Compliance), after a career in local government spanning in excess of fifty years and inclusive of ten years with the EMRC. I take this opportunity to personally thank Kevin for his outstanding contribution to the success of the EMRC and to convey our thanks for a job well done. The EMRC, member Councils and regional stakeholders can be proud of the organisation’s achievements during the past year.

The Environmental Services team were kept busy during the year progressing a number of projects aimed at improving air and water quality, water conservation, maintaining regional biodiversity, and minimising the environmental impact of waste and regional contamination.

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During the year the Risk Management Service became a WorkSafe WA authorised provider of the new ‘Safety Awareness Training for the Construction Industry’. This is mandatory training for everyone working in construction, and as such demand began to build towards the end of the year.

ORGANISATION STRUCTURE

The Regional Development team continued to work closely with the member Councils and regional stakeholders to encourage economic and tourism development in Perth’s Eastern Region. After three years of dedication to remapping trails, the Swan Valley and Perth Hills Trails Discovery Guide and complementary website (www.perthtrails.com.au) was officially launched in October 2005. The Guide has been well received, with over 100 bookstores in the Perth metropolitan area stocking it.

GAVIN K WATTERS Chief Executive Officer

Chief Executive Officer Gavin Watters

Resource Recovery Project Development Manager Stephen Fitzpatrick • Alternative waste disposal methods • Community education

Corporate Services Executive Manager Corporate Services Peter Schneider Finance • Accounts • Payroll • Asset management Organisational Development • Human resources management • Strategic and business planning • Strategic and business reporting • Business management system Compliance • Statutory compliance • Financial compliance Governance and Administration • Records • Functions and training management • Agendas and minutes • Contract management • Council and committee support Information Services • Information planning • Information storage and access Marketing and Communications • Stakeholder relationship management • Organisational marketing and communications services • Maintain EMRC’s web presence

Waste Management Services Executive Manager Waste Management Services Brian Jones Red Hill Waste Management Facility • Class I - III waste disposal • Class IV waste disposal • Weighbridge operation • Red Hill administration • Transfer station • Recyclables recovery • Greenwaste composting • Greenwaste shredding and mulching • Ferricrete production and sales • Landfill gas control • Leachate control and monitoring • Household hazardous waste collection and disposal • Dry-cell battery collection programme • Waste education • Waste management research

Regional Services Executive Manager Regional Services Mick McCarthy Environmental • Environmental management • Natural resource management • Environmental consulting • Environmental advice and advocacy • Regional sustainability • Regional catchment management • Environmental research Risk Management • Occupational safety training • Risk management consulting • Hazard prevention • Accident prevention • Public liability risk surveys • Workplace safety system audits • Risk management research Regional Development • Economic development • Regional transport • Regional employment • Regional tourism • Regional information resources • Regional development advice and advocacy • Community development • Regional education • Regional development research

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CEO’S OVERVIEW

07


EMRC ANNUAL REPORT 2005 / 2006

08

09

COMMITTEES Chief Executive Officers Advisory Committee (CEOAC) The CEOAC was formed to consider matters that have an impact on the member Councils and/or the EMRC’s business activities. Consisting of the member Councils’ Chief Executive Officers and the EMRC’s Chief Executive Officer, the CEOAC provides recommendations to the EMRC Council.

Technical Advisory Committee (TAC) The TAC consists of an officer from each member Council, the EMRC’s Chief Executive Officer and appointed deputies. The TAC reviews and provides reports on technical matters and recommendations for Council meetings.

Strategic and Secondary Waste Treatment Committee (SSWTC) The SSWTC is comprised of the members of the TAC and

a Councillor from each member Council. The SSWTC meets to review and progress resource recovery activities for the region.

Regional Identity Committee (RIC) The RIC consists of one Councillor from each member Council and 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.

Cr Tina Klein

Cr Michelle Stubbs

Cr Mark Devlin

Cr Lou Magro

Cr Barry McKenna

Town of Bassendean

Town of Bassendean

Town of Bassendean

City of Bayswater

City of Bayswater

Cr Terry Kenyon

Cr Glenys Godfrey

Cr Marion Blair

Cr Janet Powell

Cr Elizabeth Taylor

City of Belmont

City of Belmont

City of Belmont

Shire of Kalamunda

Deputy

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

Deputy

City of Bayswater

ELECTED REPRESENTATIVES •

Cr Tina Klein, Town of Bassendean

Cr Elizabeth Taylor, Shire of Kalamunda

Cr Michelle Stubbs, Town of Bassendean

Cr Pauline Tonkin, Shire of Kalamunda

Cr Mark Devlin, Town of Bassendean (Deputy)

Cr Sue Blair, Shire of Kalamunda (Deputy)

Cr Lou Magro, City of Bayswater

Cr John Beaton, Shire of Mundaring (Chairman)

Cr Barry McKenna, City of Bayswater

Cr David Lavell, Shire of Mundaring

Cr Terry Kenyon, City of Bayswater (Deputy)

Cr Tony Cuccaro, Shire of Mundaring (Deputy)

Cr Glenys Godfrey, City of Belmont

Cr David Fardig, City of Swan (Deputy Chairman)

Cr Marion Blair, City of Belmont

Cr Todd Jones, City of Swan

Cr Janet Powell, City of Belmont (Deputy)

Cr Charlie Zannino, City of Swan (Deputy)

Cr Pauline Tonkin Shire of Kalamunda

Cr Sue Blair

Cr John Beaton

Deputy

Chairman

Shire of Kalamunda

Shire of Mundaring

Cr David Fardig Deputy Chairman

City of Swan

Cr Todd Jones City of Swan

Cr David Lavell Shire of Mundaring

Cr Charlie Zannino Deputy

City of Swan

Cr Tony Cuccaro Deputy

Shire of Mundaring

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The 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 2006, the appointed Council members were:


EMRC ANNUAL REPORT 2005 / 2006

11 CORPORATE SERVICES 2005/2006 Highlights and Achievements

The impacts of adopting Australian Equivalents to International Financial Reporting Standards (AIFRSs). The EMRC reported for the first time in compliance with AIFRSs in the Annual Financial Report for the year ended 30 June 2006. The transition to the AIFRSs was managed via a process of education, which included technical training and liaison with the EMRC’s auditors and industry groups. This included a review of AIFRSs to determine the effect on the EMRC’s existing accounting policies and treatments, resulting in some changes to the accounting policies applied to previously prepared Annual Financial Statements. Overall it was determined that there were no material differences as a result of adopting AIFRSs.

For the first time, and as a requirement of the ‘Local Government (Financial Management) Regulations 1996’ (Clause 33A), a budget review was required to be undertaken between 1 January and 31 March 2006. The review of the EMRC 2005/2006 Annual Financial Budget was undertaken during March 2006 and submitted to Council, via the Audit Committee, for adoption. The format of the review undertaken was based on a review by officers of all EMRC accounts (operating income, operating expenditure and capital expenditure accounts) within their area of responsibility.

A review of the tonnages budgeted to be received at the Red Hill Waste Management Facility. This review was undertaken to forecast tonnages expected to be received by 30 June 2006. These forecasts, when calculated against the appropriate disposal rates, provided financial forecasts relating to:

Throughout the year the Corporate Services team provided valuable support to the business units and assisted in the delivery of services, projects and regional initiatives.

Administration The Administration team was committed to providing compliant record keeping practices in accordance with the Record Keeping Plan. In August 2004, the EMRC’s Record Keeping Plan was formally approved by the State Records Commission for a period of three years. A revised Record Keeping Plan will be submitted to the State Records Office by July 2007 taking into account updates and changes to the EMRC’s record keeping systems. Document Manager, the EMRC’s primary electronic document management system introduced in July 2003, has had 60,000 documents saved into its two repositories by staff. During the year, records management training was included as part of all new staff members’ induction process to inform them of their responsibilities in regards to corporate record keeping. The Records Officer also provided a helpdesk for Document Manager users.

Financial Management The Finance team continued to provide financial services to the organisation, including the core processes of accounts payable and receivable, payroll processing, assets monitoring, financial reporting, financial forecasting and general accounting processing. Key financial activities undertaken during the year were: •

The performance of managed funds, which resulted in net returns higher than general bank term deposit rates, following the implementation of short-term and long term investment strategies in accordance with the Management of Investments Policy.

Base income (including landfill levy) from tonnages analysis

Secondary waste income

Landfill levy expenditure

Waste education charge income

Cell depreciation/usage

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The Corporate Services team provides administrative, financial management, information services, marketing and communications, and organisational development support services to the organisation and ensure that the EMRC’s operations comply with statutory requirements.


EMRC ANNUAL REPORT 2005 / 2006

12 Marketing and Communications The Marketing and Communications team continued to provide day-to-day marketing assistance, including the development of public relations opportunities, coordination of advertising, production of EMRC newsletters and collateral in accordance with the corporate style guide, compilation of award submissions, coordination of sponsorship opportunities and the review of content and functionality across all four EMRC websites.

Information Services Information technology infrastructure was updated in several areas during the year, including: •

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Staff who work remotely from the EMRC, both at member Councils and other locations, were able to access email and documents at the EMRC via a virtual private network (VPN) link to a server. A high speed internet link was established at the Red Hill Waste Management Facility using a wireless internet service provider. This greatly improved the previous link, which was limited by restricted telecommunications services available to the area. It also enabled staff at the Facility to make greater use of the IT systems in place at the EMRC’s administration office in Belmont. Upgrades were made to four servers, including the mail system, file server and the Red Hill server. This was a major task as it involved upgrading the EMRC network system to Microsoft Active Directory 2003.

Key marketing activities undertaken during the year were: •

The implementation of an electronic-newsletter (e-news) function enabling the organisation’s newsletters to be distributed in a more environmentally friendly and cost-effective way. Assisting the Tourism Development team to launch the Swan Valley and Perth Hills Trails Discovery Guide, including the design of a complementary website (www.perthtrails.com.au). The development of a secure online payment gateway to facilitate sales of the Swan Valley and Perth Hills Trails Discovery Guide via the EMRC’s website. Coordinating a regular schedule of EMRC staff information sessions/sundowners to help improve internal communications. Developing a Lobbying and Advocacy Policy to provide a consistent approach and framework for dealing with organisational and regional lobbying and advocacy issues.

Appointing consultants, through a tender process, to conduct stakeholder perception surveys over the next three years. Overall findings from the 2005/2006 survey were positive and will assist the organisation in future planning processes.

Organisational Development As part of facilitating continuous improvement initiatives throughout the organisation, significant effort was expended on improving induction processes, succession planning and

The EMRC’s annual Community Grants Programme was again conducted to support community groups in the vicinity of the Red Hill Waste Management Facility. Successful recipients under this year’s programme were recognised with a cheque presentation ceremony at the 2005 Red Hill Open Day.

other staff-focused programmes to ensure the EMRC remains

A total of $11,000 was awarded to 11 groups under the 2005/2006 programme:

over the next few years. The Strategic Plan covers the period

Gidgegannup Agricultural Society Inc

Gidgegannup Recreational Club

Gidgegannup Playgroup Inc

an employer of choice. The EMRC’s Strategic Plan was adopted by Council in December 2005. It was published in order to inform the community of projects and services that will be progressed from July 2005 to June 2010. In accordance with r19C(7) of the ‘Local Government (Administration) Regulations 1996’, a local government is to ensure that the electors and ratepayers of its district are

Gidgegannup Ratepayers Economic & Business Enterprise Group

Gidgegannup Basketball Club

and when preparing any modifications of a plan.

Parkerville Playgroup

Consequently, the EMRC’s Five Year Plan for the Future was

Gidgegannup Netball Club

made available through the member Councils’ libraries, on

Mt Helena Badminton Club

the EMRC website, and upon request through the EMRC

Wooroloo Brook Land Conservation District Committee

1st Gidgegannup Scout Group

Gidgegannup Junior Football Club

consulted during the development of a plan for the future,

reception. No public comments were received and the Plan was adopted on 20 July 2006 without modification.

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All forecasts, which were an actual review of the budget provisions set against each account, were then loaded into the financial management system to provide a more accurate forecast of the end of year result. These reviewed results also formed part of future financial reports, including the Five Year Financial Plan, which was submitted to Council during budget deliberations and will form the basis of future annual budgets.

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EMRC ANNUAL REPORT 2005 / 2006

15 WASTE MANAGEMENT SERVICES The Waste Management Services team provides advice on waste management issues to the member Councils and undertakes the design, documentation and supervision of the works required to ensure the Red Hill Waste Management Facility is able to minimise the environmental impact of waste disposal, and waste management operations.

2005/2006 Highlights and Achievements Red Hill Waste Management Facility During 2005/2006 there was a decrease in the amount of member Council tonnages disposed of at the Red Hill Waste Management Facility; however, there was a 34.8% increase in the total waste tonnages received. Most of the increase was waste from the CSBP Cresco site in Bayswater, together with increased commercial and industrial waste tonnages. Total income amounted to $10,502,193 which was 20.5% up on the budgeted income. In early 2006, a new 51 tonne Caterpillar 836H waste compactor costing $1,144,000 was purchased, which was the first machine of its kind in Australia, and as a result the additional tonnages delivered were able to be processed without a corresponding increase in expenditure. Total operating expenditures were 10.7% up on the budgeted operating expenditures. The concrete encapsulation service was used extensively and provided businesses in the region with an environmentally safe and economical method of disposing wastes that would otherwise have to be shipped interstate for disposal or to Karratha for incineration. During 2005/2006, work on the design for Stage 2 of the Class IV cell and Stage 11 for Class II/III waste by EMRC staff, with the assistance of specialist consultants, continued and is scheduled for construction during 2006/2007. The cells will incorporate world best practice liner, leachate and collection technologies.

Greenwaste Processing 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 continued to be used to construct contour banks on the completed areas of landfill, and such contour banks proved considerably more effective than the clay contour banks previously used. There has also been a substantial improvement in the germination of the seeds used to rehabilitate the site. The area licensed by the Department of Environment and Conservation to undertake soil remediation provided 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.

Methane Gas Collection Methane gas collection and electricity generation utilising the gas was also expanded in 2005/2006 with additional gas wells installed. This led to approximately 19,800 mega watt hours being supplied to the electricity grid. This generated enough energy to power around 3,300 homes.

Household Chemical/Hazardous Waste Collections During the year, the collection of household chemical/hazardous wastes from residents in the region was expanded as part of the EMRC’s partnership with member Councils in regional waste management projects. Each month, collections were undertaken at one of the member Council depots. This gave residents the opportunity to take their household chemical/hazardous waste materials to their local Council depot twice a year, rather than put the material in the bin where it may cause harm. Also during the year, drumMUSTER collections of farm chemical containers continued and the school ‘Dry-cell Battery Collection Programme’ expanded.

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The team also ensure the Red Hill Waste Management Facility is operated in such a way as to improve member Council and EMRC financial viability, undertake research on waste management issues, encourage utilisation of waste management by-products, work to improve regional waste management practices and encourage stakeholder commitment to waste minimisation.


EMRC ANNUAL REPORT 2005 / 2006

17 REGIONAL SERVICES Following changes in staff and a review of the organisational structure in late 2005, the Regional Services division was established and comprises Environmental Services, Regional Development and Risk Management. The new structure provides improved efficiency and has facilitated closer working relationships between the services, with a number of joint initiatives being identified and pursued. 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, water conservation, maintaining regional biodiversity and minimising the environmental impact of waste and regional contamination.

2005/2006 Highlights and Achievements During the year, the Environmental Services team worked in a professional and coordinated manner to deliver significant outcomes in all areas of their operations. A key initiative in 2005/2006 was the development and adoption of a ‘Sustainability Position Paper for the Eastern Metropolitan Region’ that highlighted the work on sustainability initiatives by the EMRC and each member Council.

Environmental Management of the Red Hill Waste Management Facility Environmental management support was provided to the Red Hill Waste Management Facility in waste acceptance approvals, compliance reporting, national pollutant inventory, environmental monitoring, rehabilitation and the development of operating procedures in the Environmental Management System.

Environmental Officer Services Ongoing Environmental Officer support was provided for the Town of Bassendean, the Shire of Kalamunda and the Shire of Mundaring, working on a range of activities related to

environmental impact assessments, environmental management plan development and implementation, advisory committee support, and community consultation for environmental activities. It is now increasingly recognised that the environmental consulting roles within the member Councils has grown and that the consulting service needs to adapt to meet changing needs.

Project Officer Roles Particular highlights in the year included, projects initiated by the member Councils that will provide them with a sound strategic basis on which to build effective and sustainable environmental practices. Projects in this category include: •

The state of the environment reporting process for Mundaring.

A Local Biodiversity Strategy for Kalamunda.

Initiating an Environmental Plan for the City of Bayswater.

Continuing to implement the Town of Bassendean’s Environment Plan.

Initiating work on a Local Environmental Planning Strategy for the City of Belmont.

Advice to Member Councils Advice to member Councils was provided on the implications for local governments on a range of State and Federal Government statutes, policies and initiatives. These included changes to the Vegetation Clearing Regulations, Draft Swan and Canning Rivers Management Bill and the EPA Guidance Statement (Number 33) for Planning and Development. Through this advice, the member Councils were able to stay up-to-date on regulatory and policy initiatives.

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Environmental Services


EMRC ANNUAL REPORT 2005 / 2006

18 The EMRC and six member Councils were part of the Perth Solar City Consortium seeking funding under the Australian Government’s Solar Cities Funding Programme, a $75 million initiative in energy efficiency and demand management, smart metering and distributed solar technologies across Australia. A detailed business case was submitted in April 2006 and outcomes of the funding bid should be known in 2006/2007. If funded, Phase One of the Perth Solar City Project will be a focused trial of community engagement in Perth’s Eastern Region and the establishment of demonstration projects, many of which will also be in the region. Phase Two will see a wider roll out of the engagement and technologies throughout the region and elsewhere in the Perth metropolitan area. The EMRC’s role has been to provide coordination and facilitation of the member Councils’ interests particularly in relation to community engagement, marketing and communications, and demonstration projects. It is envisaged that the EMRC will continue its involvement in the implementation stage of the project, should the proposal be successful.

Major Regional Environmental Projects

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The Natural Resource Management (NRM) Policy Development Project is a partnership between the Swan River Trust and local governments. It is coordinated and delivered through the EMRC, to improve the health of the Swan River and its catchment. This water quality improvement initiative involves 11 Councils, including all six EMRC member Councils. The Local Government NRM Manual, a key deliverable of the project, 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. During the year a Sustainable Landscaping Package was developed, and Foreshore Management and Waste Guidelines released.

The Eastern Hills Catchment Management Programme (EHCMP) is an initiative aimed at improving land quality, water quality and maintaining biodiversity. The EHCMP is a sub-region of the Swan NRM Region and aims to achieve the relevant objectives and outcomes set through the Swan Region Strategy for NRM, and to provide community capacity building for the participating member Councils. Additionally the EHCMP has had a strong working partnership with the Swan River Trust, delivering water quality and community capacity building outcomes in the Eastern Hills. The team also represents member Council interests and perspectives in regional NRM forums. Working closely with the Eastern Hills Community Landcare network, through five catchment groups and one Land Conservation District Committee, the EHCMP coordinates activities in the key areas of water management, natural diversity and sustainable production in partnership with the member Councils. The Programme operates with funding support from the Shires of Kalamunda and Mundaring and the City of Swan, as well as from the Swan Catchment Council and the Swan River Trust. In addition to core funding, the EHCMP, in collaboration with community and local government, secured or pursued over $220,000 in external funding in the 2005/2006 financial year for on-ground projects in the region. Many projects extended across more than one Council area allowing for the sharing of ideas and resources to achieve a common goal. The EHCMP was listed as a finalist for a State Landcare Award in 2005. Based on the integrated model of community capacity building and support, where the EHCMP officers work closely with bushcare staff in Council Offices to ensure a seamless integration between catchment and landcare support and Friends Group support mechanisms. Research across Australia indicates the level of community involvement in landcare and bushcare in the Eastern Hills is amongst the highest levels in Australia. This demonstrates the EMRC’s ability to draw together a range of stakeholders to achieve common outcomes for protecting and managing the environment.

The EMRC is also tackling the emerging issue of global warming associated with greenhouse gas emissions through an air quality improvement project aimed at energy efficiency. Through the Cities for Climate Protection (CCP) Programme, an initiative of the International Council for Local Environmental Initiatives (ICLEI), the EMRC assisted all the member Councils and the City of South Perth to implement their corporate greenhouse action plans and work with residents on practical ways in which they can reduce home energy use. The majority of member Councils participating in the Programme completed milestone five during the year and are progressing toward the next phase of the Programme, known as CCP Plus. It is anticipated that if the Perth Solar City Project is funded, it will be a major component of corporate and community greenhouse reductions in the coming years. The Water Campaign Programme is also an initiative of ICLEI and uses the same milestone structure as CCP to assist Councils in addressing water conservation and water quality issues. The EMRC is currently supporting five member Councils and the City of South Perth to progress through the milestone process. All Councils supported by the EMRC achieved milestone one in 2005/2006 and work has begun on establishing targets and developing action plans for corporate and community sectors.

Memorandum of Understanding between the EMRC and the International Council for Local Environmental Initiatives (ICLEI) One advantage of the EMRC’s role in coordinating regional environmental projects, can be demonstrated by the high levels of outcomes possible through a regional partnership approach to tackling a major environmental issue, together with support for policy development and for high levels of community engagement. In 2005, ICLEI approached the EMRC seeking to establish a Memorandum of Understanding between the two organisations based on the long history of collaborative working partnerships between ICLEI, the EMRC and the member Councils on CCP and more recently the Water Campaign. ICLEI sought approval to develop and use the EMRC’s regional approach as a model for potential introduction elsewhere in Australia and New Zealand. The Memorandum of Understanding was signed in February 2006.

Environmental Management for Ascot Place Support for the EMRC’s Environmental Policy Implementation Group, which has responsibility for leadership and initiatives in sustainable management of the EMRC’s Ascot Place premises, was continued in 2005/2006. During the year, the Environmental Policy Implementation Group continued to address issues related to reducing carbon emissions from the EMRC car fleet through the Carbon Neutral Programme, as well as recycling, energy efficiency and water conservation initiatives.

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Perth Solar City Project

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EMRC ANNUAL REPORT 2005 / 2006

21 Regional Development

Adachi-ku Delegation

The role of the Regional Development team is to work closely with member Councils and regional stakeholders to:

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. Following a request from the City of Belmont to expand their sister-city relationship with the Adachi-ku municipality in Japan beyond cultural and student exchange to trade and business exchange, the EMRC undertook a delegation to Japan in early 2006 to establish business and working relationships.

• •

Encourage economic development in the region. Create new investment opportunities, sustainable economic growth and employment opportunities. Facilitate the growth and promotion of tourism development in the region. Increase community participation in arts, culture and recreation opportunities.

2005/2006 Highlights and Achievements During 2005/2006, the Regional Development team continued to concentrate its efforts towards initiatives that make Perth’s Eastern Region an ideal business, investment and tourism destination.

The delegation, comprising of the EMRC Chairman, Executive Manager Regional Services and an interpreter, was extremely successful and the EMRC was offered a range of promotional and business exchange opportunities, which will be progressed over the next two years, culminating in a further delegation in late 2007. One of the promotional opportunities relates to the televising of a video promoting Perth’s Eastern Region on the Adachi City Vision facility, a large digital screen located at a busy railway station.

Industry Clusters Project

Regional Integrated Transport Strategy

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.

A preliminary review of transport infrastructure initiated by the member Councils, led to the EMRC, the member Councils, and the Department of Planning and Infrastructure identifying the need for the development of a comprehensive regional integrated transport strategy for Perth’s Eastern Region.

Based on research conducted in previous years, the Regional Development team progressed the establishment of an industry cluster for Perth’s Eastern Region, focusing on the mining and technology services, metals fabrication and equipment manufacturing sectors. Specific issues being considered from a cluster perspective include the development and retention of skills, resource sharing, collaborative tendering and strategies to enhance business growth and sustainability. The cluster members have also considered the type of structure and legal entity required to support the activities of the network and a leadership group has provided valuable input into the preparation of a business plan to guide the future development of the cluster initiative.

The Regional Integrated Transport Strategy, being undertaken by the ARRB Group through a public tender process, was progressed during 2005/2006. There was a review of the transport infrastructure performance and the identification of current and future transport needs for the region. Strategy and action plan development was initiated in the year and included a detailed assessment of priority projects for the region. It will be completed during 2006/2007. It is expected that the strategy will provide a ‘blueprint’ for the development of transport infrastructure in Perth’s Eastern Region over the next 20 years.

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EMRC ANNUAL REPORT 2005 / 2006

The member Councils recognise the importance of the Swan River as one of the region’s most significant natural assets and are in the process of developing a strategy and management framework to enhance its environmental, social and economic value to Perth’s Eastern Region. Initial research undertaken by the 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.

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Consultants were appointed in February 2005, following a public tender process, to undertake the study and the majority of work associated with the preparation of a draft report which was completed during 2005/2006. The study identified a range of planning strategies aimed at providing guidelines and standards for the protection and enhancement of the rivers’ values, and guidance on the development of precinct plans for those member Councils with foreshore reserves adjacent to the river. The study is expected to be completed toward the end of 2006 and it is proposed to establish a working group comprising of member Council and key government agency representatives, to oversee the implementation of the management framework.

Swan Alliance The Swan Alliance is a not-for-profit, incorporated body that has been funded under the Australian Government’s Career Advice Australia Programme to deliver a range of educational programmes across the eastern parts of the Perth metropolitan area. This area includes three district areas known as ‘Local Community Partnership’ regions. These educational initiatives are aimed at supporting young people who experience difficulties in engaging in the educational system and include structured workplace learning, career and transition support and the adopt a school programme. The EMRC is represented on the Swan Alliance Board and provides local government and industry input to assist the ‘Local Community Partnership’ in delivering improved outcomes that will provide long-term educational and economic benefits to Perth’s Eastern Region.

The NEMCC progressed a range of projects and activities during 2005/2006 including: •

A Regional Business Register - to provide local, national and international business access to trade, joint venture, and investment opportunities via an online tool for local business.

Industry Cluster Capability Register – to identify the skills, equipment, resources and capabilities of the companies involved in the cluster initiative.

Economic development planning with member Councils – to provide input and assist the member Councils to develop and implement local economic development plans and strategies.

Involvement with regional infrastructure and industry strategies – to provide input into regional scale initiatives being undertaken by the EMRC and relevant State Government agencies that affect the region. This includes a lobbying and advocacy role related to these and other projects.

North East Metropolitan Chamber of Commerce The EMRC has provided funding support to the North East Metropolitan Chamber of Commerce (NEMCC) over the last three years to assist the establishment of the organisation as a viable regional business association. A Memorandum of Understanding between the NEMCC and the EMRC has been signed and their Strategic Plan 2002-2005 identified a range of programmes as being essential to the long-term viability and sustainability of the NEMCC.

Training and capacity building for small business and export trade development – to increase the skills of small business and improve the export potential of the region.

Jobs Galore – to provide a major event for employers to recruit employees in a range of businesses and industries. An event was held in February 2006 with more planned.

Continued support for the NEMCC will be based on Council endorsement of the outcomes contained in a business proposal, which was under development at the end of 2005/2006.

Education Retention for Crime Prevention Project As part of its Youth Strategy, the EMRC provided funding support to the Hills Community Support Group (HCSG). This funding will be used to undertake a study investigating the development of a model to retain youth in the education system as a key strategy to minimise the economic and social impacts associated with youth crime and antisocial behaviour. Youth crime and antisocial behaviour cost the community significantly in terms of damage caused by vandalism, restitution costs and security measures. The study found there is strong anecdotal evidence indicating that retaining youth in a structured education based environment early in adolescence is a major determinant in reducing crime and antisocial behaviour. The study prepared a model that can be used to identify the roles and responsibilities for the various government and community sector organisations involved in this issue. The model will assist in clarifying the lead agencies and minimising duplication amongst the key target groups requiring support. The draft report for the study is expected to be completed in 2006/2007.

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Swan and Helena Rivers Management Framework


EMRC ANNUAL REPORT 2005 / 2006

Regional Tourism Initiatives

Updates to the Perth Tourism website (www.perthtourism.com.au) were made, 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 and visually appealing format.

Continued development of an annual visitor research programme, with input and advice from key tourism and Council stakeholders. The programme will be implemented by the EMRC and will produce a consistent comparable set of data for the Swan Valley and Perth Hills. This data will allow the EMRC and other regional stakeholders to identify and evaluate new initiatives and monitor the success of annual events.

Increased support for the 34th Avon Descent by providing spectator infrastructure and facilitating a joint application to Lotterywest for funding the Councils’ Community Fun Days. The EMRC is extremely grateful for the $137,594 provided by Lotterywest to support the community activities that complemented the 2005 Avon Descent.

The EMRC’s Regional Tourism Strategy entered its eighth year, during which the team completed many exciting initiatives that continued to promote Perth’s Eastern Region as an ideal destination to local residents, interstate and overseas visitors. Some of the projects undertaken were: •

Completion of the Swan Valley and Perth Hills Trails Discovery Guide and website (www.perthtrails.com.au). The aim of the project is to increase visitor numbers and spend in the region, by promoting 41 walk, cycle and bridle trails across three member Council areas. The Guide and website links users directly to the extensive tourism opportunities available in close proximity to the trails. The Guide is a major collaborative initiative between the EMRC, Shires of Kalamunda and Mundaring, City of Swan, the Department of Environment and Conservation, Lotterywest and the Department of Sport and Recreation. The Guide has been stocked by retailers throughout the region and across Perth. Production of the 2006 Regional Calendar of Events, which included 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. The calendar was distributed to over 130,000 households in the region and surrounding areas.

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EMRC ANNUAL REPORT 2005 / 2006

27 The Risk Management 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 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.

2005/2006 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 EMRC. Turnover in Risk Management Service staff later in the financial year created some challenges in maintaining the continuity of services, while at the same time assisting to achieve a more economical match between the supply of services and demand from member and client Councils. The Service continued to facilitate the reduction in accident numbers and costs.

Risk Management Training Traditional training courses such as Safety Inductions, Manual Handling, Emergency Response for Wardens and Traffic Management were offered throughout 2005/2006. During the year, the EMRC became a WorkSafe WA authorised provider of the new Safety Awareness Training for the Construction Industry. Being mandatory training, the demand began to build toward the end of 2005/2006. In Traffic Management Training, the EMRC remains one of the main four ‘Registered Training Organisations’ authorised by Main Roads WA to deliver their training requirements. There was much deliberation by Main Roads and other key stakeholders regarding State-based traffic management training (as opposed to nationally recognised training) during the year and the issue was still unresolved at the end of the period. This year saw a slight increase (0.8%) in the number of workers compensation claims for the six member Councils;

however, the services provided by the team have resulted in an 11.6% decrease in the number of claims since 2003/2004, as well as a substantial drop in claims costs. For some of the Councils, there was extensive work carried out on safety systems to prepare these Councils for future WorkSafe award assessments.

Risk Management Consulting During 2005/2006 the EMRC became a member of the Human Resources Panel contract for all State Government agencies. With respect to the EMRC itself, the Safety Advisory Committee and Risk Management Coordination Committee were again instrumental in driving the reduction of risk within the EMRC’s operations. The EMRC had three workers compensation claims and no lost-time injuries for the year, which was a significant improvement on the previous year.

Performance Benchmarking 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 was 17, with Kalgoorlie-Boulder joining during the year. 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.

Risk Management Publications and Documents 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. Over 1,000 copies were sold throughout the year, and it has proven to be an important element of the induction process for more than 15 Councils. A special project completed during the year was the development of a new Occupational Health & Safety (OH&S) Code of Practice for the Waste Management Association Australia (WA). Input was provided from all Risk Management staff and helped to consolidate the expertise the Service has in this area.

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Risk Management Services


EMRC ANNUAL REPORT 2005 / 2006

29 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 for the region. The project’s key objective is to have a fully operational resource recovery solution in place by 2012 or sooner, which would involve a resource recovery facility and/or resource recovery park.

2005/2006 Highlights and Achievements

Committees and Advisory Groups

Cardno BSD/Meinhardt Joint Venture continued to progress the consultancy contract tasks, especially the community consultation process, the analysis of sites and technologies being considered, the selection criteria and the multi-criteria process to consider community issues and weight community choices of sites and technologies.

During the year, the team continued involvement in the Southern Metropolitan Regional Council’s Compost Steering Committee to oversee the development and marketing of the regional resource recovery centre compost.

Completion of two regional workshops to consult the community on the Resource Recovery Project. The first in October 2005 at the Burswood Resort Convention Centre, the second in February 2006 at the Midland Town Hall. Workshop findings and feedback was provided to all regional workshop participants.

Completion of a community survey across the region to validate the results of the regional workshops and to test community attitudes towards waste management.

Conducted round two of member Council consultation on an outline of the project business plan and member Council agreements and financing options.

Draft reports were prepared on site and technology assessment, waste collection systems and the financial model.

EMRC Councillors, EMRC staff and member Council staff visited the eastern states to view resource recovery facilities and container deposit systems, as well as attend the Enviro. 06 Conference and Exhibition in Melbourne. Development and distribution of the 2006/2007 Resource Recovery Guides to every household in the region.

Meetings of the Project Advisory Group, and Strategic and Secondary Waste Treatment Committee were held in 2005/2006 to keep member Council officers and Councillors informed on the Project’s progress. A new Committee was also formed in 2005/2006 - the Regional Waste Education Steering Group. This group comprises of member Council and EMRC officers, and was formed to implement waste education initiatives across Perth’s Eastern Region.

Waste Management Community Reference Group The Waste Management Community Reference Group continued to meet and review critical aspects of the Resource Recovery Project and the EMRC’s waste education initiatives. Key activities undertaken by the Waste Management Community Reference Group in 2005/2006 were: •

Previewing the arrangements and information to be provided at the resource recovery regional workshops.

Actively participating in the two resource recovery regional workshops.

Reviewing and providing input on the 2006/2007 Resource Recovery Guides.

Previewing the community survey questions and methodology.

Attending the annual Waste & Recycle Conference.

Keeping informed on State Government initiatives regarding Extended Producer Responsibility Container Deposit Systems.

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Work completed or progressed in 2005/2006 included:


EMRC ANNUAL REPORT 2005 / 2006

31 STATUTORY REPORTS Statutory Compliance Return

Payments to employees

The Statutory Compliance Return for the period 1 January 2005 to 31 December 2005 was completed and lodged as required. Council was able to advise that it achieved a high level of compliance with all matters applicable to the EMRC’s 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 the EMRC’s employees entitled to an annual salary of $100,000 or more:

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. 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. 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.

4 Staff Members

(b) The number of those employees with an annual salary entitlement that falls within each band of $10,000 over $100,000: $100,000 to $109,999 $110,000 to $119,999 $150,000 to $159,999 1 Staff Member

2 Staff Members

1 Staff Member

Plan for the future 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. 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, the EMRC’s Five Year Financial Plan is detailed on the following page to outline the operating income and expenditure for the period 2006/2007 to 2010/2011.

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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.


EMRC ANNUAL REPORT 2005 / 2006

33 FIVE YEAR FINANCIAL PLAN Forecast Financial Summary

2006/2007

2007/2008

2008/2009

2009/2010

2010/2011

Operating Income

($13,171,537)

($12,419,868)

($14,183,572)

($14,800,447)

($15,437,063)

Operating Expenditure

$13,157,435

$12,128,676

$12,935,480

$13,240,119

$13,533,119

($14,101)

($291,192)

($1,248,092)

($1,560,328)

($1,903,944)

($5,623,704)

($4,493,369)

($4,773,851)

($5,285,861)

($5,325,666)

$1,770,601

$1,080,675

$898,607

$1,175,045

$1,294,735

($3,867,205)

($3,703,887)

($5,123,336)

($5,671,143)

($5,934,875)

Normal Operating Result Other Income Other Expenditure Change in Net Assets from Operations Capital Expenditure

$7,755,996

$2,383,696

$1,292,796

$1,499,296

$11,316,796

Net Operating and Capital Expenditure

$3,888,791

($1,320,191)

($3,830,540)

($4,171,847)

$5,381,921

Current as at the adoption of the 2006/2007 Budget on 24 August 2006.

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Please note that all future year expenditure details are presented in 2006/2007 values.


34

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EMRC ANNUAL REPORT 2005 / 2006

35


EMRC ANNUAL REPORT 2005 / 2006

36

37

OPERATING STATEMENT

STATEMENT OF FINANCIAL POSITION

FOR THE PERIOD ENDED 30 JUNE 2006

AS AT 30 JUNE 2006

ACTUAL 2005/2006 $

BUDGET 2005/2006 $

ACTUAL 2004/2005 $

OPERATING REVENUE

ACTUAL 2005/2006 $

ACTUAL 2004/2005 $

22,440,767

16,788,595

1,759,980

1,187,942

CURRENT ASSETS

Governance

250,609

447,676

526,145

Cash and Cash Equivalents

General Purpose Funding

1,096,772

833,482

819,036

Trade and Other Receivables

Community Amenities

13,981,140

12,043,222

10,123,196

Inventories

33,456

21,046

Other Property and Services

1,930,358

1,790,843

1,734,028

Other Assets

28,916

20,835

TOTAL OPERATING REVENUE

17,258,879

15,115,223

13,202,405

24,263,119

18,018,418

OPERATING EXPENSES

TOTAL CURRENT ASSETS CURRENT LIABILITIES

Governance

1,450,204

1,721,329

1,655,953

Trade and Other Payables

759,984

559,177

Community Amenities

7,682,676

8,380,243

6,548,050

Provisions

701,309

643,306

Other Property and Services

2,861,374

2,712,576

2,321,498

Borrowings - Current Portion

302,509

284,370

Economic Services

0

0

28,681

TOTAL OPERATING EXPENSES

11,994,254

12,814,148

10,554,182

OPERATING SURPLUS

5,264,625

2,301,075

2,648,223

TOTAL CURRENT LIABILITIES

1,763,802

1,486,853

NET CURRENT ASSETS

22,499,317

16,531,565

11,643,138

12,605,293

NON CURRENT ASSETS Property, Plant and Equipment Work in Progress

188,126

126,416

11,831,264

12,731,709

Provisions

914,887

809,697

Borrowings - Long Term Portion

321,804

624,312

TOTAL NON CURRENT LIABILITIES

1,236,691

1,434,009

33,093,890

27,829,265

TOTAL NON CURRENT ASSETS

NET ASSETS EQUITY Accumulated Surplus

14,344,281

12,881,925

Cash Backed Reserves

18,749,609

14,947,340

33,093,890

27,829,265

TOTAL EQUITY

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NON CURRENT LIABILITIES


EMRC ANNUAL REPORT 2005 / 2006

38

39

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2006

FOR THE YEAR ENDED 30 JUNE 2006

Change in net assets from operations

BUDGET 2005/2006 $

ACTUAL 2004/2005 $

ACTUAL 2005/2006 $

ACTUAL 2004/2005 $

Cash receipts in the course of normal operations

13,004,092

10,423,996

10,622,300

12,881,925

13,131,917

Cash payments in the course of normal operations

(9,729,736)

(8,557,746)

(9,092,333)

2,648,223

Interest receipts - Municipal Cash

167,918

83,980

132,893

Interest payments - Loan Ascot Place

(52,670)

(44,000)

(69,721)

3,389,604

1,906,230

1,593,139

2,366,704

ACCUMULATED SURPLUS Balance at the beginning of the year

ACTUAL 2005/2006 $

5,264,625

CASH FLOWS FROM OPERATING ACTIVITIES Cash Flows from Normal Operating Activities

Transfers from reserves

2,192,056

1,459,390

Transfers to reserves

(5,994,325)

(4,357,605)

Net Cash Provided by Normal Operating Activities

Balance at the end of the year

14,344,281

12,881,925

Cash Flows from Other Operating Activities

Balance at the beginning of the year

14,947,340

12,049,125

Cash receipts from secondary waste charge

2,982,189

2,465,744

Amount transferred from accumulated surplus

5,994,325

4,357,605

Cash receipts from resource recovery project

12,106

0

0

Amount transferred to accumulated surplus

(2,192,056)

(1,459,390)

Cash payments for resource recovery project

(566,878)

(766,284)

(428,847)

18,749,609

14,947,340

Interest receipts - secondary waste investment

484,442

411,060

292,195

33,093,890

27,829,265

Resource Recovery

RESERVES - CASH BACKED

Balance at the end of the year

Other Activities TOTAL EQUITY

444,412

338,442

393,948

Net Cash Provided by Other Operating Activities

Interest receipts - other restricted investments

3,356,271

2,448,962

2,624,000

NET CASH PROVIDED BY OPERATING ACTIVITIES

6,745,875

4,355,192

4,217,139

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

987,732

1,392,000

451,315

(1,797,065)

(5,621,400)

(1,940,061)

(809,333)

(4,229,400)

(1,488,746)

Cash payments - loan principal repayments

(284,370)

(284,369)

(267,318)

(284,370)

(284,369)

(267,318)

Cash at the beginning of the year

16,788,595

16,788,595

14,327,520

Net increase (decrease) in cash held

5,652,172

(158,577)

2,461,075

22,440,767

16,630,018

16,788,595

NET CASH USED IN FINANCING ACTIVITIES SUMMARY OF CASH FLOWS

CASH AT THE END OF THE YEAR

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CASH FLOWS FROM FINANCE ACTIVITIES


EMRC ANNUAL REPORT 2005 / 2006

40 BULLSBROOK

NOTES FOR CONCISE FINANCIAL REPORT Income Statement

Cash Flow Statement

Total Operating Revenue of $17,258,879 as at 30 June 2006 is approximately $4,056,000 greater than the 2004/2005 actual operating revenue and approximately $2,144,000 above budgeted provisions.

The cash flows used in investing activities for 2005/2006 reflects a decrease of approximately $143,000 capital expenditure from the 2004/2005 financial year.

Total Operating Expenses of $11,994,254 are approximately $1,440,000 greater than the 2004/2005 actual operating expenses and approximately $820,000 below budget for 2005/2006. The Operating Surplus resulting from operations of $5,264,625 is approximately $2,616,000 more than the level of 2004/2005 and approximately $2,964,000 greater than the 2005/2006 budget.

Balance Sheet Current assets as at 30 June 2006 increased approximately $6,245,000 in comparison to the level stated as at 30 June 2005. This relates to increased cash receipts from operations. Current liabilities as at 30 June 2006 increased approximately $277,000 in comparison to the level stated as at 30 June 2005.

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The value of cash backed Reserves increased by approximately $3,802,000 in comparison to the level stated as at 30 June 2005. This is primarily as a result of the low level of funds utilised from Reserve funds for capital expenditure together with transfers made to the Reserve funds during the 2005/2006 financial year. Overall equity increased during the 2005/2006 financial year by $5,264,625 to $33,093,890.

QUINNS ROCK

Swan

JOONDALUP

W

Net Cash provided by Operating Activities of $6,745,875 reflects an increase of $2,528,736 from the 2004/2005 value of $4,217,139. The overall impact on the cash position at the close of the financial year is an increase of $5,652,172 to $22,440,767. This is represented by restricted cash and investments of $18,967,379 and unrestricted cash and investments totalling $3,473,388.

CHIDLO PAKERVILLE STIRLING

MORLEY

MT HELENA STONEVILLE

MIDLAND

Bassendean

MUNDARING SAWYERS VALLEY

Bayswater

Mundar PERTH

Belmont

Concise Financial Report The concise financial report cannot 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.

Kalamunda CANNINGTON

FREMANTLE

ARMADALE


VISION

MISSION

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. 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

2005/2006 EMRC Annual Report  

2005/2006 EMRC Annual Report

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