2021/2022 Shire of Esperance Annual Report

Acknowledgement OF Country

The Shire of Esperance acknowledges the Kepa Kurl Wudjari people of the Nyungar nation and Ngadju people who are the traditional custodians of this land, and their continuing connection to land, waters and community.

We pay our respects to Elders past, present and emerging and we extend that respect to other Aboriginal Australians today.

Our Purpose

The Shire of Esperance exists to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperity.

- Shire of Esperance Council Plan 2022-2032

- Shire of Esperance Council Plan 2022-2032

Our Vision Esperance, together we make it happen.

Shire President’s Report

It is with pleasure that I present the 2021/2022 Annual Report of the Shire of Esperance. This year has been one of consolidation.

Our Chief Executive Officer, Shane Burge, has shown great leadership by building an extremely strong Executive Management Team with Mathew Walker, Director Asset Management, Felicity Baxter, Director Corporate & Community Services and the addition of Holly Phillips as Director External Services. He also put a clear focus on customer service, requiring all departments to promptly deal with project and public requests.

Throughout the year the Executive Management Team have provided excellent information to Council through detailed briefing sessions and connecting specialist consultants via modern technologies. This supported Council to progress the Waste Management Plan for Myrup and site planning for the James Street Cultural Precinct development.

There has been a lot of work around alternate accommodation options, with Council approving the amendment to the Accommodation in a Caravan Policy and consulting the community on the need to review holiday homes within the Esperance town site.

Council was proud to distribute $328,081 via the Community Grants Program, our biggest and most direct investment to support our community groups.

We formally adopted the Food Organics Garden Organics service, which will be instigated when the new waste management facility is operational.

The Bush Fire Risk Management Plan was endorsed, along with the Elected Members Social Media Policy and the Public Health Plan 2021-2026. These matters show the diversity of topics Council consider for our residents.

Like so many other businesses, COVID-19 impacted Shire operations. Implementing the Shire’s Organisational COVID-19 Plan, flexible work options were quickly put into place. Some staff worked from home, while others worked from alternate venues. This ensured social distancing and other health requirements were complied with all while continuing services. Some services, such as Home Care, had to be significantly altered. My sincere thanks to all staff who worked so hard to ensure our customers, clients and community were well informed and kept safe. It was an uncomfortable time, but it is nice to have everything back to normal.

At the 2021 Local Government Election, Cr Dale Piercey and long serving Cr Basil Parker chose not to re-nominate. Cr Steve McMullen decided to run again and was re-elected alongside new members Cr Leonie de Haas, Cr Rob Horan and Cr Shayne Flanagan. I extend my sincere thanks to Cr Piercey and Cr Parker for their dedicated efforts as Shire of Esperance Councillors, and thank my fellow Councillors for their dedicated work ethic and focus serving the Esperance region.

I also extend my great appreciation to all Shire staff who work diligently behind the scenes, making sure the goals set by the community and Council are achieved to the highest of standards.

I look forward to working with everyone in providing a great service to our magnificent Esperance Community.

Chief Executive Officer’s Report

I am proud to present the 2021/2022 Annual Report for the Shire of Esperance.

The Annual Report is a summary of our highlights, challenges, developments and achievements made throughout the year. Esperance has a wonderful community, and we should be proud of what we have achieved together.

During the year, the Shire developed a new Council Plan, which combined both the Strategic Community Plan and Corporate Business Plan. The Shire of Esperance Council Plan 2022-2032 presents a clear, easy to read roadmap of our strategies and priority actions for the Esperance Community over the next four years. I would like to extend a special thank you to those who participated in the workshops or attended sessions for the development of the Plan.

During October 2021, Council elections were held resulting in us welcoming three new Councillors, Rob Horan, Leonie De Haas and Shayne Flanagan; and Steve McMullen was successfully re-elected to represent the Town Ward. We congratulate all our new Councillors and commend Shire President, Ian Mickel, for his support and guidance during the past 12 months.

The pandemic has been very much a part of 2021/2022 and the way we conducted business. The Shire acted to uphold State Government regulations, and meetings with metropolitan based consultants and stakeholders continued to be predominately held via Zoom. Staff welcomed the opportunity to attend various webinars and conferences online, which would ordinarily have required attendance in person. We responded well to COVID restrictions and remained flexible under unusual working arrangements when required.

With restrictions prohibiting interstate travel, we saw our fellow Western Australians flock to Esperance over the summer period. This influx of visitors caused the Shire Overflow Campground to reach near capacity, accommodating over 10,000 people during a 5 week period.

The completion of the pump track and opening of the beach enclosure and lap pontoon just in time for the Christmas period was a highlight, with many making use of the new infrastructure.

The finalisation and adoption of the Esperance Greater Sports Ground Redevelopment Masterplan and the trial of sand back passing to address coastal erosion along the foreshore were two long outstanding projects that came to fruition. Learnings from these projects will provide guidance and advice on how to proceed with future infrastructure developments.

I would like to thank my Executive Management Team for their hard work and dedication over the past 12 months, and all the Shire staff who go above and beyond to deliver wonderful service to the Esperance community.

I look forward to what the next 12 months will bring and am excited for the Shire to continue providing essential services and infrastructure to the Esperance community.

Planning for the Future

Council Plan

The Shire of Esperance’s Strategic Community Plan 2017-2027 was the overarching strategy document for 2021/2022, which reflects the long-term aspirations and goals of the Esperance Community.

The Strategic Community Plan 2017-2027 focusses on the following five themes:

Leadership

Community Connection

Built Environment Natural Environment Growth & Prosperity

A major review of the Shire’s integrated planning and reporting framework commenced in late 2021. A significant engagement program to gather information from the diverse community for the review was undertaken, by way of community workshops and reference to the biennial MARKYT Community Scorecard outcomes. The community provided input on what they felt were the current challenges and opportunities in our Shire and the important focus areas for Council.

This resulted in Council choosing to merge both the Strategic Community Plan and Corporate Business Plan into one succinct document. The Shire of Esperance Council Plan 2022-2032 identifies our vision, aspirations and priorities for the future and comes into effect from 1 July 2022.

The new Council Plan includes five themes:

People Planet Place Prosperity Performance

The Plan will be reviewed annually to meet the integrated planning and reporting requirements under the Local Government Act 1995. One of the most significant changes was a simplification of the Shire’s vision to “Esperance, together we make it happen”. We aim to be an inclusive community where things can get done if we pull together with a common goal.

About this Report

Welcome!

Every year the Shire provides vital services to the community, and our Annual Report is where we highlight our achievements and the progress made towards realising the strategic goals identified in our Council Plan

The Annual Report is one of our key reporting tools, providing transparency to our community and details our operational performance, achievements and challenges experienced throughout the past financial year.

Our priority for 2021/2022 was to continue to enhance our communication with the community and encourage more people to participate in developing solutions on topics Council are being asked to make decisions on.

Council Elections

The 2021 Local Government Election, held on 16 October 2021, was highly contested with four elected member positions available. Shire staff supported the Returning Officer appointed by the WA Electoral Commission.

We welcomed Councillors Rob Horan, Leonie De Haas, Shayne Flanagan and Steve McMullen representing the Town Ward.

Councillors Basil Parker and Dale Piercey did not nominate for re-election.

The Shire remains apolitical during elections, however actively promotes and encourages community members to be involved and vote for their preferred elected representatives.

Our community benefits from having a range of Councillors with differing views, ensuring the broader community is represented when making decisions.

Elections for Council leadership roles were held on the following Monday with Ian Mickel being elected as Shire President and Ron Chambers being elected as Deputy Shire President.

Following the Ward and Representation Review undertaken in 2020/2021, which resulted in the ward boundaries being adjusted and one Rural Ward councillor position moving to the Town Ward, there was no Rural Ward election this year.

Annual Electors meeting

Our Annual Electors Meeting was held in February 2022 with 125 community members, Councillors and the Shire Executive Team in attendance. This gave local residents an opportunity to question the Annual Report 2020/2021, query general business and raise motions to Council for discussion at subsequent meetings.

Ten motions were raised on the night, all of which were carried. Eight of these were broadly related to the local pro-choice campaign, one pertaining to signage on Tupper Street, and one in relation to the reallocation of $300,000 from the proposed dog park.

The motions which were carried at the Annual Electors Meeting were discussed by Council at their February 2022 Ordinary Council Meeting.

L1 Encourage community participation and insight into activities and decisions

Currently none of our Elected Members identify as Aboriginal or Torres Straight Islander and all have a linguistic background of English.

Meeting Attendance

The Esperance Shire Council meets weekly on a Tuesday for information sessions and workshops on a variety of topics.

On the third Tuesday of each month they attend an Agenda Briefing, an informal opportunity for Councillors to ask questions, request further information and discuss the items listed in the Ordinary Council Meeting Agenda.

On the fourth Tuesday, Council attend the Ordinary Council Meeting where decisions are made on all report items in the best interest of the community.

The Ordinary Council Meeting for September 2021 was held at the Condingup Community Hall with 16 members of the public and press attending.

This also provided an opportunity for open discussion at the conclusion of the meeting. Below is a table outlining individual Councillor attendance for the Financial Year.

Fostering leadership and accountable decision making

Council Policies

Our policies are in place to guide us in the efficient management of resources, and effective procedures for our daily operations and decision making.

Our policies are reviewed regularly to ensure they remain current and relevant to our needs and the expectations of our community. This year the following policies were endorsed by Council;

• Accommodation in a Caravan

• Tanker Jetty Timbers

• Elected Member Social Media

• Small Grants Approval

• Memorials in Public Places

• Budget Control

• Corporate Credit Card

• Investment

• Compliance and Enforcement.

Delegated Authority

Each year the Delegated Authority Register is presented to Council for endorsement. The Register provides authority to the CEO and Authorised Officers to use some of the Local Government’s powers and discharge its duties under the Local Government Act 1995

Changes to delegations for the 2021/2022 financial year include;

• Rescinding the Registration of Infringement Notice delegation from the Register as legislation gives this authority directly to the CEO

• Rescinding the Donations delegation and replacing with the Small Grants Approval Policy.

Council Plan

63 members of the community came together in November 2021 to take part in the FUTYR Community Workshops. The information from these workshops, our Strategic Community Plan 2021 survey, 2021 MARKYT Community Scorecard and other strategic documents were considered when drafting the new Council Plan.

The Council Plan merges and simplifies the Shire’s Strategic Community Plan and Corporate Business Plan, and is designed to be a practical document that people can read quickly and easily to understand where the Shire is headed.

The Shire of Esperance Council Plan 20222032 was adopted at the May 2022 Ordinary Council Meeting and a community sundowner to celebrate the release is planned for August 2022

Topics raised during the community workshops include;

• Youth (services, activities)

• Housing, Accommodation, Development

• Aged Care (service availability, employee recruitment/retention)

• Health Care (mental health, access to specialists)

• Recreation (parks, tracks/trails, affordable entertainment options)

• Sustainability (emission baseline, vehicle options, working group)

• Streetscapes (trees, plants, mowing)

• Roads (parking, crossings, maintenance)

• Local Higher Education Options

• Increased Communication, Networks

• Celebrate Cultural Heritage/Diversity

• Coastal Erosion Solutions

• Transport Options

• Community Safety

Council Committees

Following the Local Government Election, a review of the Shire’s Council Committees was undertaken where it was recommended that the majority become informal working groups to allow greater flexibility in how they are managed. As a result, the Shire now has the following Committees and Working Groups in place to provide guidance to Council on a wide variety of areas within the community.

Committees:

• Bush Fire Advisory Committee

• Audit Committee

Working Groups:

• Sustainability Working Group

• Disability Access and Inclusion Plan Working Group

• Museum Working Group

• Esperance Twin Towns Working Group

• Esperance RoadWise Working Group

• Reconciliation Action Plan Working Group

• Streetscape Advisory Working Group

• Business Round Table Working Group

• Esperance Tourism Stakeholder Working Group

• Cemetery Working Group

Further information on our Committees and Working Groups is available on the Shire’s website.

Citizenship Ceremonies

The Shire of Esperance works with the Australian Department of Home Affairs to help people from other countries become an Australian Citizen. A list of approved names from the Department is received once a month and helps the Shire administer the final step of becoming an Australian Citizen – the Ceremony. At the Ceremony, we ensure that all of the mandated aspects of Citizenship Ceremonies are followed and provide the individuals with their citizenship certificate.

During 2021/2022 we held 9 citizenship ceremonies with 46 people becoming Australian citizens. These people have come from many places such as the United Kingdom, Philippines, South Africa, Zimbabwe, Ireland, Sri Lanka, Canada, Taiwan, India, Brazil, Scotland, Poland, Thailand, Vietnam and Germany.

Fostering leadership and accountable decision making

L2 Provide responsible resource and planning management for now and the future

Information Services

During the year, a replacement for Adobe Acrobat was investigated due a significant increase in Adobe licensing fees. Kofax Power PDF was tested and found to include all the familiar functionality and security measures at a reduced cost. Kofax Power PDF was subsequently procured and made available for use by staff.

To assist Councillors in fulfilling their meeting obligations in an ever-changing technological world, iPads were purchased and configured for use. The iPads provide greater flexibility in accessing Shire related meeting papers and were distributed to Councillors following the 2021 Local Government Election.

In January 2022, Microsoft Teams telephony became operational for Shire staff. Teams telephony provides a cloud-based solution with advanced features and removes the need for ongoing maintenance of the legacy PBX system. A replacement 4G antenna and modem was also installed at the Airport to try to alleviate intermittent connectivity issues being experienced.

The IT team worked closely with the Asset Management team to upgrade the Shire’s internal mapping software (IntraMaps) as well as working with an external contractor to upgrade our Content Manager Records Management Software. Both projects experienced delays following the urgency to prepare staff to be able to work from home due to stay at home orders.

An additional casual resource was employed during the year, and their work focused on a legacy digitisation project which saw 1,011 Building Licenses and 391 Septic Applications scanned in.

Many of these required extensive research to determine which property they belonged to.

Information Services also reviewed the Records Disaster Recovery Plan and Record Keeping Plan in March with the next review to be undertaken in 2024.

Organisational Changes

There were some minor changes to the organisational structure this year, with the Manager Council Enterprises position being removed and their duties shared between other Managers in External Services, with the exception of the Airport which is now part of Economic Development.

Community Development and Economic Development were split into separate work areas, after previously being combined, with Economic Development moving to Executive Services and Community Development remaining in Corporate & Community Services.

Development & Statutory Services

The Shire was successful in being a part of a Small Business Friendly Program, which is an opportunity to simplify and improve processes for the benefit of our local small businesses. Consultation and engagement commenced with the Small Business Development Corporation in April 2022, and it is expected that the program will be undertaken in the 2022/2023 financial year.

The Compliance and Enforcement Policy was adopted by Council in March 2022 in order to set out a consistent and transparent approach when dealing with compliance and enforcement related matters.

Our Workforce

We currently employ 327 employees with an approximate full time equivalent (FTE) of 228. It’s a highly diverse workforce with females making up 56% of the workforce, although only 33% of permanent employees.

The turnover rate for permanent employees in 2021/2022 was 19%, which is the same as last year’s rate of 19% but significantly higher than the 2019/2020 rate of 15%. With the reopening of State borders, the Shire has noted an increase in availability of skilled and experienced workers, albeit shortages in critical skills remains an issue. To assist with attraction and retention of staff, we offer a number of strategies including flexible work arrangements where practicable, health and wellbeing opportunities, as well as training and development.

The pandemic continued to impact staff, with a number being required to work from home, work from other worksites or be redeployed to carry out alternative work in situations where they were required to isolate. Staff were encouraged to be vaccinated and granted time off from work to attend vaccination bookings or recover from any related illness.

Shire employees overwhelmingly followed vaccination guidelines and vaccination levels were correspondingly high.

New Employee Code of Conduct

In September 2021, staff were provided with the new Employee Code of Conduct, which;

• provides employees with clear guidelines for the standards of professional conduct expected of them in carrying out their functions and responsibilities;

• addresses the broader issue of ethical responsibility and encourages transparency and accountability; and

• expresses the Shire’s commitment to high standards of ethical and professional behaviour and outlines the principles in which individual responsibilities are based.

The Code is complementary to the principles adopted in the Local Government Act 1995 (the Act) and associated regulations, which incorporate four fundamental aims:

1. better decision-making by local governments;

2. greater community participation in the decisions and affairs of local governments;

3. greater accountability of local governments to their communities; and

4. more efficient and effective local government.

Fostering leadership and accountable decision making

Enterprise Agreement

During 2021/2022 the Shire negotiated an Enterprise Agreement which was ratified by the Fair Work Commission on 29 June 2022 and will take effect from 7 July 2022. The process was seamless and reflects the high level of commitment of all bargaining representatives, who negotiated in good faith to achieve an outcome that embraces contemporary workplace issues and sets a platform for effective management of the Shire’s Human Resources.

Staff Training

Employee training and staff development plays an important part in the upskilling and compliance of employees throughout the organisation. 2022 has been busier than ever with training being held both onsite and remotely to enable employees to upskill to meet the expectations of their positions such as Traffic Management, Rigging and Dogging, Fire Warden and Extinguisher Training, and First Aid.

Other training that has benefited the organisation has been Team Development workshops by Candor Training. As part of R U OK? Day and Mental Health awareness month, Happiness Co also provided free training to employees in mental health, wellbeing and happiness. Other training provided by WALGA, LG Professionals, TAFE and other RTOs has been beneficial across the organisation in ensuring employees are skilled and equipped to perform their roles effectively.

The Shire also provided training in Working with Difficult Customers and Workplace Behaviour workshops, both of which were well attended and received by staff. The Human Resources Department also attended the inaugural Stars Futures Careers Expo showcasing Traineeship opportunities within the Shire and future career paths available within the organisation.

New Annual Performance Review Process

The Annual Employee Performance Management Review process was updated this year with a focus on the Shire’s Values of Professionalism, Respect, Integrity, Dedication and Excellence. As representatives of the Esperance community, Shire employees are guided by these values in their day to day activities. The new process more accurately measures employee behaviours against these five values.

The Performance Review measures job skills and knowledge against the specific accountabilities of each position, OSH compliance, customer service and future training requirements to assess skills gaps analysis and KPIs/goals will be in line with the Shire of Esperance Council Plan 2022-2032.

Feedback to date from the new process has been positive.The new Performance Management process is managed by electronic distribution and has enabled the process to be more streamlined with the turnaround time greatly reduced.

Live Streaming of Council Meetings

Live Streaming of Council meetings has now commenced, with the first live stream being conducted at the August 2021 Ordinary Council Meeting. Live stream links and recordings of all Council meetings are available on the Shire’s website.

The meeting with the greatest views was February 2022 with 480 people watching. This was the Ordinary Council Meeting where the mandate petition was tabled.

1,122Livestream Views

Marketing & Branding

Strategy

Quotes are being gathered to refresh the Shire’s Corporate Branding. Phase 1 of this project will be refreshing the corporate style guide, with the process to then continue into a review of our templates and documents, and further business branding for our facilities.

Benchmarking

The Shire of Esperance continues to work with other Local Governments through the Regional Capitals Alliance Western Australian (RCAWA) by providing relevant information for inclusion in their benchmarking report, which was received in December 2021.

This benchmarking report provides a comparison between the ten local governments involved in RCAWA and is used for internal comparison and improvements.

L3 Foster a culture of innovation

Fostering leadership and accountable decision making

Reconciliation Action Plan

NAIDOC Week 2021 was held from Sunday 4 to Sunday 11 July with the theme – Heal Country! which focussed on embracing First Nation’s cultural knowledge and understanding of Country as part of Australia’s national heritage.

The Shire of Esperance and the Esperance Tjaltjraak Native Title Aboriginal Corporation (ETNTAC) celebrated with an official opening ceremony in front of the flag poles at the Shire’s administration building. The event was open to all and took place on Monday 5 July. Participants were then invited to join a procession down Andrew Street to the Whale Tail for more NAIDOC-themed activities and a free BBQ.

The Shire of Esperance’s Reconciliation Action Plan Working Group was proud to present a free film screening of Mabo to celebrate the 30th anniversary of the Mabo case, and to kick off National Reconciliation Week for 2022, which was held 27 May to 3 June.

The movie tells the remarkable life story of Eddie ‘Koiki’ Mabo; a Torres Strait Islander who left school at the age of 15, yet spearheaded the High Court challenge that overthrew the fiction of terra nullius. The screening was held at the Civic Centre on 25 May 2022, and local indigenous art and products were displayed.

The Shire also worked with local Nyungar artist Atheleen Thomas to incorporate an indigenous design into the side panels of our corporate polo shirts, more affectionately known at ‘Friday shirts’.

L4 Actively engage and communicate with the community to ensure informed decision making

Marketing & Communications

244 media enquiries were received by the Media team in 2021/2022, with well over 400 questions requiring responses. Journalists from across the country generated over 750 stories and news articles about the Shire of Esperance, which went out in print, on the radio, TV and online.

The new shark barrier and lap pontoon generated wide interest and stories, as did the trial of Beam electric scooters, the Local Government election, the bus trial, and the Edge of the Bay Festival. Reporting on the innovative shows at the Civic Centre was also a constant focus.

The Shire provides information to over 900 subscribers of the Shire Flyer email newsletter, with more reading the print version, and also posts regular Latest News articles on the Shire’s website. The 2021/2022 financial year saw 21 editions of the Shire Flyer, covering a myriad of topics, and 80 Latest News articles uploaded to the Shire website, with important information for our local community, visitors and other interested parties.

This last financial year saw our Facebook followers grow by over 700 to hit the 10,000 mark – a great milestone!

Digital subscriptions to newspapers have increased the sustainability of the media monitoring process as physical newspapers no longer need to be collected and stored, resulting in reduced costs and greater efficiencies for the team as the digital newspapers are key term searchable.

The Media team was asked to create a video to go with the Visitor Centre’s GWN7 Top Tourism Town Awards application. We are finalists in this award and are very pleased with the outcome. The video is now located on the Visit Esperance Website, and is a stunning addition to the site.

Fostering leadership and accountable decision making

Disability, Access & Inclusion

The Shire of Esperance’s Disability Access and Inclusion Plan (DAIP) continued to demonstrate our commitment to greater equity for people living with disabilities in our region during 2021/2022.

The Shire is an equal opportunity employer, partners with Workforce to assist people with disability in work placements, and promotes employment and traineeships through our cultural schooling programs and NDIS providers. Notable achievements during the year included:

• The Shire was successful in receiving a grant from the Department of Communities to provide a beach wheelchair and beach matting to access the water as part of the James Street Town Beach upgrades

• The new swimming pontoon at the James Street Town Beach was designed to include a water level, accessible platform for swimming and respite

• All Shire events now include “drop off” options close to the event area to enable easy access.

• Accessible upgrades were undertaken including carpeting in a colour, texture and pattern to assist our community members with vision impairment to the Civic Centre, sit down desks in the Shire Administration building and additional disabled parking bays at the Bay of Isles Leisure Centre.

• Shire staff undertook training via a registered NDIS provider on Cultural Awareness, Understanding Disability and See the Person, Not the Problem.

Town Tunes

Town Tunes kicked off in December 2021 to build vibrancy in the centre of town. The call was put out for musicians, dancers, creatives, jugglers and curious performers of all ages and abilities. Residents and visitors were treated to an array of performances from our very talented members of the community. 20 sessions were held, consisting of mainly solo artists (singers/ musicians) and Community Choir groups.

One & All

Residents and visitors were once again invited to join in the fun during the One & All Community program. The Esperance One & All Community Program is a partnership between ESCARE and the Shire of Esperance and is about making sport and recreation fun through a variety of activities, games and challenges.

The sessions run this year focussed on indoor soccer, ninja kid’s exercise, a screening of children’s movie Abominable, damper making, beat ball, disco party, Anzac poppies, surf life saving, mural painting, chess and a games / brick club.

Edge of the Bay Festival

The Edge of the Bay Festival was once again held on Saturday, 4 December 2021 much to the delight of the Shire and event participants. Edge of the Bay provides a youth focused, inclusive community event that caters to both locals and visitors, located at the Youth Precinct on the Esplanade near the Scout Hall.

With most skate, scooter and BMX competitions not running this year, Battle of the Bay attracted competitors and spectators from across the state, and was a great opportunity for our home-grown talent to test themselves against the best in WA.

The new Busking Space was popular, as was the live music provided by local talented artists.

Kite Kinetics’ kite displays entertained young and old alike, and the inclusion of the Realise Ability sensory chillout zone was a welcomed addition.

Almost 60 different stall holders, vendors and community groups were present; including face painting, a coffee van, electric vehicle test driving with the WA Branch of the Australian Electric Vehicle Association, the climbing wall run by Esperance Scouts, and bouncy castles, laser tag, food vendors, drumming, arts and crafts, clothing, gifts and homewares, and business displays.

The Esperance Distillery Co. were a new presence this year, alongside Lucky Bay Brewing.

Connecting our community to achieve a healthy, inclusive, active and safe place to live

Esperance Home Care

Drake Brockman Building and Construction has successfully tendered for the Esperance Home Care Centre upgrade project with works expected to commence in November 2022.

The Hon. Shelley Payne MLC attended to present a certificate from Lotterywest regarding the grant of $189,000. This grant, along with a combined donation of $150,000 received from the Esperance Rotary Club and Esperance Bay Rotary Club was for our Centre building upgrade.

A minor restructure at the Esperance Home Care was undertaken, and an appointment of a Quality and Compliance Coordinator was made.

Esperance Home Care participated in an NDIS audit on 11 February 2022. This was our first NDIS audit, and was very successful with no non-conformances and praise for the way the organisation is run.

Esperance Home Care staff attended the Dying to Know Expo at the Senior Citizens Centre in February 2022. Staff also hosted a stall with information about Esperance Home Care, and our new Quality and Compliance Coordinator spoke about dementia and Parkinson’s Disease on the day.

The Dementia Support Australia team attended the Centre in March 2022. This visit was advertised on our Facebook page for anyone who wanted to attend, with 10 community members attending.

Alzheimer’s WA provided training to some of our staff, as well as staff from the Esperance Aged Care Facility and Aged Care Assessment Team assessors. They also provided an information session for carers and the public.

Environmental Health

Our Environmental Health team focused on ensuring premises requiring regulatory inspections were inspected and associated health programs are in operation to keep our community safe. This included ensuring businesses were displaying their Safe WA QR codes and contact registers in line with the Department of Health guidelines. The team continued to asses COVID-19 Safety Plans, COVID-19 Event Plans and training to ensure safety of the community.

Our visual messaging board was used to promote the Fight the Bite campaign and social distancing in public places and at events. Fight the Bite was also promoted at events while distributing freebies.

The Food Safety – Be Prepared week was held from 13 to 20 November 2021. A Foodsafe Online Program was provided free of charge for business operators to train their staff to minimum compliance levels in hygiene and food safety standards.

Public Health Plan

Our Public Health Plan, designed to protect, promote and enhance the health, wellbeing and quality of life for the Esperance community was adopted by Council in July 2021.

Following the Plan’s adoption, activities and partnerships were developed to support the goals and objectives that line up with the theme ‘An Inclusive, Resilient & Connected Community’.

This included the Environmental Health team successfully applying for a Suicide Prevention grant from WA Primary Health Alliance (WAPHA), enabling us to provide this funding to community groups for delivery of local suicide prevention projects within the community. Grants were issued to Esperance Lifespan Suicide Prevention Network, Lifeline WA, Happiness Co, Mental Health Week, Lifeline Australia and Injury Matters.

One of the projects delivered by Road Trauma Support and supported by the Shire of Esperance covered first response and mental health wellbeing within the freight sector in Esperance.

Connecting our community to achieve a healthy, inclusive, active and safe place to live

Community Connection

C3 Facilitate and support sport, recreation, arts and cultural activities

Civic Centre

Over 3 days in May, the Civic Centre conducted an Audience Development Research project. Over 20 people attended the sessions, and 5 school groups were visited. The group discussions demonstrated that the locals take great pride in the venue because it is an iconic landmark of the Shire. It is well-accepted and liked by the locals, and visits are seen as positive. Some of the notable positives include the following:

• The cleanliness of the venue.

• The friendly and hospitable attitudes of staff and volunteers.

• The acoustics of the auditorium.

• The comfort of the seats in the auditorium and the good views they offer.

COVID mandates saw us move the Annual Electors Meeting to the Noel White Centre; the CATCH performance was held at Nulsen Primary School to allow more members of our community to attend. For many, this was the first time they had experienced a show. Workshops were also held at the school over two days. Following the easing of restrictions, the Centre welcomed patrons back for performances such as A Taste of Ireland, The Australian Beatles and Jumping Jack Flash, Great Gable, Human Highway playing the music of Neil Young and Grug.

Stage upgrades were completed in October 2021 and carpets within the building replaced.

Sadly, we farewelled long-time Civic Centre Manager Neville Mulgat following his passing in October 2021. Neville demonstrated extraordinary dedication and customer service during his time of employment with the Shire and will be missed.

Library

The Strategic Plan for the Library is well underway with the focus on succession planning for Library staff. Library staff investigated potential new Library Management Systems and were busy with plans to further rearrange areas of the library to meet the ongoing needs of our customers, especially in regard to digital and electronic usage requests.

We are now subscribed to the Hoopla digital platform. Hoopla is a digital media service that allows library members to borrow movies, popular music, audiobooks, ebooks, comics and TV shows to enjoy on their computer or mobile device with no holds or waiting.

Esperance Library is one of eight trial libraries participating in the ‘Boosting Early Language and Literacy Skills in WA Communities’ program; a State Library and Public Libraries WA initiative in collaboration with the Dyslexia SPELD Foundation and Telethon.

The project involves training to enable staff to provide support to parents about how children best learn to read so that they can support the development of reading skills in their children.

Digital Health Literacy sessions were arranged in four locations (Esperance Library, Senior Citizens Centre, Men in Sheds and Esperance Care Services) to educate seniors in the use of MyGov / MyHealth online sites and apps, particularly around COVID vaccination records.

The Library hosted many events during the year, including a local Spinning Group demonstration morning on 17 September, the worldwide ‘Spin-in’ Day, a statewide Sketchbook Project for youth aged 12-25 years, four ‘Resilience through Art’ programs, a youth art Healthy Mindset journaling workshop, a Book Sculpture Project hosted by visiting artist Helen Siever and a visit from author Yann Toussaint encouraging children to write like an animal, in parternship with Esperance Community Arts. In partnership with Escare, three parenting workshops were held during June - Cyber Safety, Cyber Bullying and Pornography Access by Minors.

Museum

The Esperance Bay Historical Society marked their 50th anniversary in September, with over 100 people visiting the successful Gold Coin Open Day. The Museum was able to open to the public over the September/October school holidays, with volunteers stepping up to cover extra shifts to accommodate the busy period.

Training for volunteers in the areas of collection management, covering conservation, cleaning, storage and labelling of objects was offered during the year. Training is a priority, as the environmental climate of the Museum continues to lead to deterioration of objects on display. We also held our first ‘Behind the Scenes Open Day’ to show the community what happens to items when they are donated to the Museum.

The EFTPOS trial is proving very positive. Statistics are showing a healthy use of the system by Museum visitors, and staff will recommend that a permanent EFPTOS facility is installed after the trial concludes in October.

A large contingent of over one hundred Castletown Primary School students and teachers visited the Museum as part of a curriculum project. Children rotated in onehour visits to look around the museum and investigate early Esperance settlement experiences.

From December 2021 to February 2022, the Australian National Maritime Museum banner (Remarkable – Stories of Australians and Their Boats) was displayed, with the theme exploring the connections that people from all communities have with boats.

Connecting our community to achieve a healthy, inclusive, active and safe place to live

Community Connection

Bay of Isles Leisure Centre

The Bay of Isles Leisure Centre team are to be commended on their amazing work during the year. Afternoon creche recommenced in the afternoons, and we held an Olympic Games Day, with children competing in various events such as hurdles, basketball, rowing, shot put, track cycling and trampoline.

The Bay of Isles Leisure Centre hosted a display at the Esperance Districts Agriculture Society Show, with 468 children engaging with the ‘Watch Around Water’ activity. Esperance, being a coastal community surrounded by beautiful beaches, made ‘Watch Around Water’ an easy choice of theme to promote the importance of learning to swim. Visitors to the display had fun meeting water safety mascots Wendy and Walter and learning all about water safety.

The Rottnest Swim Event held in February 2022 was successful, with a good level of team entries and great community spirit on the day. A total of $3,000 was raised for local charities, Restore Hope and Tor Youth Shed.

Water Polo commenced this year, with the program run as a class until the group can gauge popularity of the program to determine whether a water polo club can be established in Esperance.

South Regional TAFE also commenced their partnership, with a TAFE lecturer operating from the centre once a week to train Health and Fitness students.

The Royal Life Saving Association conducted a safety audit of the centre in February 2021. Overall, the centre achieved a 98.5% rating and staff are in the process of implementing the improvements identified in the report, with key focus areas being Design & Construction, Special Feature, and Spa Pools.

Swim School

The Education Department Vacswim Program was held at the Bay of Isles Leisure Centre over the school holiday periods throughout the year.

Patrons enrolling in the swim school program were able to make payments via direct debit this year, providing flexibility in payment of fees.

90,952 Centre visits 1,984 Swim School Enrolments

Stadium Complex

The Stadiums continue to be utilised with Basketball, Netball, Badminton, Volleyball and Soccer completing their seasons.

Esperance Netball Association held their Mixed Netball Competition and was well supported.

Esperance Twilight Aerials Academy held a Gymnastic Competition in the Graham Mackenzie Stadium allowing athletes to demonstrate their talent in a regional context.

Graham Mackenzie Stadium was also used for a pop-up roller rink. This event included discos, workshops and has been scheduled to occur again in 2023.

The Esperance Agricultural Society used both Stadiums for the Agricultural Show with Esperance Indoor Stadium providing a large area for stall holders to promote their business

Overflow Campground

The Overflow Campground reopened in September 2021 and the process of campers booking on arrival at the Bay of Isles Leisure Centre is working well.

Users of the Overflow Campground have been thankful that they have had somewhere to stay, and verbal feedback to the hosts and Bay of Isles Leisure Centre staff has been positive.

This year ran smoothly, with 7 camp hosts employed as Customer Service Officers rostered during busy periods. Staff are managing camp overflow patrons at the Greater Sports Ground to minimise the impact on sporting surfaces.

Over the 5 week period the Overflow Campground was open, we accommodated over 10,000 people.

Be Somebody; Be a Volunteer!

The Esperance Volunteer Resource Centre moved into the Library premise in July 2021 to reduce operating costs as a result of external funding changes. While the Centre is visible, staff will be focusing on building foot traffic to the Centre and to the Library itself.

In August 2021, the Minister for Volunteering visited and met with local volunteers over afternoon tea, and we held a successful International Volunteer Day where volunteers were invited to come to the Markets and have tea / coffee and chocolates provided by us. Volunteers also placed their hand prints on a banner to be displayed, with around 80 volunteers making their mark.

To celebrate National Volunteer Week this year, we recorded a series of video interviews with five volunteers from diverse backgrounds about their volunteering and to discover how they started and why then continue to volunteer. The videos were shown at our National Volunteer Week event in May, which was the pinnacle of our work through the year. The use of social media over the week generated great traffic, with 540 views on Youtube.

We were able to host training in March 2022 for community groups on having Difficult Conversations and Why We Click. Staff provided a talk on setting up a volunteer program and what is involved for the Aged Care action groups feedback session, as increasing volunteering within the Esperance Aged Care Facility was a recommendation from the February forum.

We also took part in a Q&A session provided by the Club Development Officer as a guest speaker, discussing the implications of the new Work Health and Safety requirements for local groups.

Connecting our community to achieve a healthy, inclusive, active and safe place to live

Community Connection

Community Grants

Our Community Grants Program allocates funds to develop and actively support community organisations and individuals who are contributing to the wellbeing and cultural life of our region.

In 2021/2022, 46 grants were approved across all categories totalling $320,948, an increase of $53,362 from last year. One grant application was cancelled and two were postponed with the approved grant funding being rolled over into the coming financial year. A total of $20,425 was granted under the Support category, with 23 community groups benefitting.

A significant review of the Community Grants Program has been undertaken this year and will come into effect from 2022/2023. The change from four categories to two is intended to simplify the grant process and enable a more responsive approach to supporting community groups. Small Grant approvals will allow for a quick turnaround of applications for grants under $3,000, while Annual Grants will continue to be assessed by Council on an annual basis for applications greater than $3,000.

Council also endorsed recurring operational funding for the Esperance Brass Band, Esperance Community Arts and the Cannery Arts Centre, removing the need for these community groups to re-apply on an annual basis.

We ran two ‘Meet the Grantmakers’ sessions in March to connect grant seekers with grant makers, with 45 community members attending. Those who came along were from a wide range of local clubs and groups, including the Pistol Club, Bijou Theatre, Bowling Club, both Rotary Clubs, Gymnastics, Clay Target Club, Esperance Care Services, SES & Marine Rescue, Esperance Football Club, Lingalonga, Turf Club, Hockey Association, Lotteries House, 2 School P&Cs, SAFE, Salmon Gums Development Group, Farmers Across Borders, Esperance Basketball Association, Speedway Association, Hope FM and the Cricket Association.

In addition to the Shire, presentations were made by Horizon Power, Lotterywest, Department of Local Government, Sport and Cultural Industries, Southern Ports and the Mt Burdett Foundation.

Cannery

Cannery

Esperance

Grass

Escare Incorporated – Auspicing for the Kids Fun Day Out Committee

Esperance Sonshine Broadcasters Inc (103.9 Hope FM Esperance Community Radio)

Coastal Warriors Cricket Club Inc

Condingup Basketball Association Inc

Esperance Plagroup Association

Esperance Soccer Association (Inc.)

Moving Movies Esperance Inc.

Mudjar Aboriginal Corporation

The Association of Red Hatted Groups of Australia Inc – Auspicing for Bay of Isles Babes

Christian Aboriginal Parent-Directed School Incorporated - Wongutha Campus

Pump Track

Construction of the much-anticipated pump track commenced in October and was completed in December 2021, just in time for the school holiday period. The project was funded by the Federal Government’s Local Roads and Community Infrastructure Program with an allocation of $500,000.

The asphalt track contains three endless loops with rollers and berms and a pump bowl all designed to be ridden without pedalling, instead using a pumping motion, pulling up on the face of rollers and pushing down on the backside.

The project included a locally constructed shelter to match those along the foreshore, as well as landscaped seating and a water fountain. The active space of the Youth Precinct is surrounded by a network of passive space, ensuring the precinct is safe, inviting, family friendly and inclusive.

CCTV

An application for grant funding for implementation of stage two, three and four of the CCTV strategy was successful. Stage two, three and four will focus on the foreshore, Pink Lake Road area and a mobile CCTV solution.

Tenders for the project have been received and are expected to be awarded in the coming financial year.

The Shire of Esperance provides access to the CCTV system to WA Police who have exclusive control of all recorded footage. The WA Police monitor the CCTV as required for preventing or responding to antisocial behaviour or crime

C5 Engage youth in the community

Connecting our community to achieve a healthy, inclusive, active and safe place to live

C6 Develop and maintain a safe environment for the community

Community Connection

Community Emergency Services

The Bushfire Risk Management Plan (BRMP) was completed and endorsed by the Office of Bushfire Risk Management in September 2021, and by Council in October 2021. The BRMP is a strategic document that lays out the identification, assessment and treatment of assets exposed to bushfire risk within the Shire of Esperance, in order to protect people, assets, and historic and local heritage areas of value. The tenure blind approach used in the development of the BRMP ensures that all land is given equal importance; whether privately or state owned, the multi-agency program is applied on the same footing.

Volunteers were invited to visit Ravensthorpe to view the new 4.4 Broadacre style firefighting appliances on offer. Volunteers who attended were pleased with the new appliances and impressed with their abilities. The Shire of Esperance received Local Government Grant Scheme Capital Grant funding to build a new fire shed for the Condingup Bush Fire Brigade (BFB). Funds received were based upon the costings of the Coomalbidgup BFB shed. The COVID pandemic has raised the cost of materials and other associated building costs, and a revised quote was necessary. St John Ambulance have indicated they would like to be co-located with Condingup BFB, and negotiations are underway to see if the Shire can secure the additional funding prior to going to Tender.

The Bushfire Fleet Mobility Working Group project experienced a setback when the Department of Transport exemption for use of super single tyres expired. The Pink Lake 3.4U has since been modified and enhanced with a Central Tyre Inflation (CTI) system, after-market DPD and standard tyre configuration.

The Pink Lake and Six Mile Hill BFBs trialed the modified Pink Lake 3.4U, the DFES loan 3.4U with Super Single tyres and a standard Hi-Fire Season 3.4U. Volunteers from the Pink Lake BFB were impressed with the increased performance gained with the after-market DPD, and are driving up sand dunes with ease.

In February 2022, we received 4 Light Tankers following a recommendation from the 2015 Esperance Fires Coronial Inquest. Both the Commissioner and Emergency Services Minister were present for the handover of vehicles. A new fire danger rating system will be in operation for the upcoming fire season. This is a national platform, bringing consistency across all States.

Mississippi Bend, Pink Lake saw us need to attend the first large fire within the Shire area for the past two years. Pink Lake BFB were the primary brigade supported by Six Mile Hill BFB, Quarry Rd BFB, Dalyup BFB, Gibson BFB, Howick BFB, Mt Merivale BFB, Emergency Support Unit, Esperance SES, DFES and DBCA. Crews worked extremely well over six days, with crews working anywhere between 8-13 hours, utilising a mixture of defensive and offensive strategies to extinguish the fire. The fire burnt over 800Ha west of Eleven Mile Beach Road and was caused by a lightning strike.

The Shire of Esperance was successful in its application for funding from the Mitigation Activity Fund and received approximately $430,000 to complete 50 treatments. We attended the South Coast NRM “Prepare for the Bushfire Season” as one of four presenters. The event, held at Lucky Bay Brewing was attended by approximately 25 community members.

Rangers

Ranger Services continued to keep the Shire environment clean, welcoming and safe for residents and visitors during the year. In June 2022, Council endorsed the new Draft Dog Local Law and Rangers have been reviewing operational procedures relating to management of dogs. Ranger Services have also been contacting dog owners to assist with the registration process for dogs who have not been re-registered with us for some time.

A recent review on cat management has resulted in the drafting of a new Cat Local Law. Council also endorsed a memorandum of understanding with SAFE Esperance, which provides for use of the Shire’s animal management facility in urgent circumstances.

Ranger Services, in association with Biodiverse Solutions, South East Fire Safety and Department of Fire and Emergency Services, presented at a community workshop which aimed to raise community awareness for bushfire preparedness.

The new animal management facility was completed and handed over in July 2021 and is in operation, with both dogs and cats now being cared for in this facility.

During the period, 126 firebreak inspection reports were completed, 34 infringements were issued and 27 Variations to Notice requirements were approved.

COVID-19

The Shire received many enquiries during the year from community organisations seeking clarification and assistance in interpreting State Government directives on COVID management.

We thank the community for their patience and understanding during this time and appreciate all the attempts made by groups to meet their obligations.

The Shire hosted a Pop Up ‘Mass Vaccination Hub’ from 18 to 23 November and 9 to 14 December at the Noel White Centre; and an Organisational Preparedness Plan and Workplace Guidelines were completed to provide direction on COVID matters.

The Department of Health provided 200 pulse oximeters to the Shire, which were distributed to our vulnerable community members such as the elderly, indigenous and pregnant.

$27,000 of funding received from IGO Limited in 2020/2021 was used this year to assist with minor renovations and equipment purchases to reopen a ten-bed wing at the Esperance Aged Care Facility.

Connecting our community to achieve a healthy, inclusive, active and safe place to live

Built Environment

Cemetery

The Cemetery Working Group was reinstated in February 2022 and the Cemetery Master Plan 2015 document was tabled for review at the May 2022 meeting.

A Cemetery Master Plan workshop is planned to be held in July 2022 to consider priorities such as access to the cemetery, identification of lost graves, and options for the interment of ashes. Other issues that will be raised are infrastructure, landscaping and memorial options such as a tree of remembrance or butterfly wall.

Dog Park

During the year, we consulted with the community of the proposed location of an enclosed dog park. Following feedback, a dog park will be designed and installed at Wildcherry Park. Construction is scheduled to commence in the 2022/2023 financial year.

Jetty Award

The Shire of Esperance Replacement Jetty Project won the prestigious Civil Contractors Federation WA (CCF) Earth Award in the $5M - $10M category. The awards recognise excellence in civil construction and the West Australian chapter of the CCF bestowed the award on the joint applicants, the Shire of Esperance and Maritime Constructions, at a gala dinner held in October.

Streetscaping

The Urban Node trial was able to be completed this year following the easing of COVID restrictions. The Shire also sought feedback from the community and local business through a survey released in April. A review of the urban node trial was provided to Council in July 2021, with feedback highlighting that the idea had merit, however would benefit from a more detailed node design before further implementation. As a result of the review, Council resolved to investigate the design and implementation of permanent nodes at the Break Away Café and 33 Degrees sites, with future nodes to be designed and integrated into public open space areas of the CBD.

Following the removal of the old Tanker Jetty, some of the salvaged timber has been repurposed and made into street signs installed in visual areas throughout town, such as the roundabouts, approved for use at South Regional TAFE for their entry statement at the newly constructed campus, and used for the Hon. Shelley Payne’s bench outside her office.

Making our town center a vibrant and relaxing place for residents and visitors alike continued this year, with the installation of additional street furniture in post office square, including a seat around the Norfolk Island pine tree.

B1 Maintain the Shire’s robust asset management practices and maintenance programs

Regulatory Building Services

Building Services ensures that all statutory requirements are met for the issue of building approvals and maintains building records.

The Shire of Esperance has one residing Building Surveyor who provides certification services to the community for the lodgement of uncertified applications.

At times, enforcement of compliance with permits is required but this can only be fully effective with adequate and qualified staff to undertake inspections.

Town Boat Ramp

In September, installation of a new floating finger jetty at the Town Boat Ramp was completed.

The finger jetty allows for a much safer passenger movement in and out of boats. The new finger jetty will also provide a closer embarkment and collection point for tourist ship passengers.

Lap Pontoon / Beach Enclosure

The James Street groyne beach enclosure project was completed in December 2021 and provides a safe, protected swimming enclosure for residents and visitors to Esperance.

The project, funded in part by the Department of Primary Industries and Regional Development, the State Government and the Shire, includes a large beach enclosure, lap pontoon and beach cleaning machine.

The beach cleaning machine, known as ‘The Boss’, will remove rubbish, clean and dispose of sea grass wrack and also be used after storms and community events.

Maintaining, upgrading and planning for present and future infrastructure to service the community

Built Environment

Asset Planning

Our Building Asset Management Plan was endorsed by Council in August 2021 and has been developed to guide long-term sustainable management of the Shire’s building assets.

This financial year saw us complete a range of projects throughout Shire buildings and the community including:

• Painting of the Condingup Public Toilet

• Installation of a new server room at the Noel White Centre

• New kitchen and toilet upgrades to the creche and new sliding doors in the wet area of the Bay of Isles Leisure Centre

• Technical / rigging upgrades and installation of new carpet at the Civic Centre

• Construction of a tank stand at Salmon Gums

• Asbestos replacement and installation of a grease arrestor at the Cannery Arts Centre Innerspace building

• Upgrade to the water feed into the Greater Sports Ground soccer public toilets

• External painting of the Old Police Sergeants Quarters

• Replacement of the hot water system at the Grass Patch Community Hall and upgrades to the Grass Patch Caravan Park;

• External storage and foyer upgrades to the Esperance Public Library; and

• Maintenance work to the Shire Administration building including the conversion of the CEO meeting room into an office.

The Bay of Isles Leisure Centre heat pump upgrade project has seen all materials procured and the majority delivered to site. The contract for construction has been awarded, with fabrication on structural steel commencing. The shutdown of the centre has been delayed until early July 2022 to ensure minimal disruption to the community.

Planned work for the year includes lifting of columns within the railway shed section of the museum, CCTV upgrades at the Civic Centre, additional storage at the Noel White Centre and reception upgrades at Esperance Home Care. The Shire is planning for implementation of a new geographic information system (GIS) to allow for better functionality.

Drone Program

The Drone Program has continued to progress in development. In March, a computerised drone flight management system, AVCRM, was implemented, removing the need for paper copies for planning flights, running operations, maintenance and pilot skill set continuity.

The main platform of the fleet, the Matrice 300 RTK drone has three payloads, the Zenmuse H20T camera, allows for at height inspections, thermal inspections and general photography, the Zenmuse P1, a 45-megapixel camera used to produce high resolution aerial imagery and the Zenmuse L1 a compact LIDAR (Light Distance and Return) unit can produce threedimensional imagery.

A new drone platform capturing spectral data has been budgeted for and is planned to be commissioned in the 2022/2023 period and will help identify the vegetation health, especially in rehabilitated areas. The Drone Program is continuing to prove its worth providing an inspection tool that removes the need for staff to work at heights, a fantastic point of view for capture of imagery at height and a highly accurate survey tool that produces superior results compared to previous practices.

Greater Sports Ground Master Plan

The Greater Sports Ground Redevelopment Committee endorsed the proposed masterplan and recommended it to Council, where it was endorsed at their October Ordinary Council Meeting.

The Esperance Greater Sports Ground Redevelopment Masterplan provides a common-sense approach for future redevelopment projects at the Greater Sports Ground.

The plan identifies projects that are likely to occur over a 20-year timeframe and how they fit in the overall context of the Greater Sports Ground so that any detrimental impacts are avoided.

Priority projects identified from the Esperance Greater Sports Ground Redevelopment Masterplan include:

• Sealing of internal roads

• Closure of internal roads to prevent the Greater Sports Ground being used for through traffic

• Power Upgrade to the Greater Sports Ground

• Construction of four new outdoor Netball courts

• Replacement of the Tuart trees with a more suitable species.

B2 Deliver a diverse, efficient and safe transport system

Cycling Strategy

With the exception of minor asphalting works at the railway crossing, the Harbour Road shared path has been completed. Kerbing works along Bandy Creek Road commenced in April, and both the Castletown Quays and Bandy Creek shared paths are progressing well.

The Shire is awaiting required approvals for installation of the Bandy Creek foot bridge in the meantime. Sealed shoulders have also been completed on Eleven Mile Beach Road making for a safer cycling experience.

Bus Trial

With assistance from the Shire, the Public Transport Authority held two days of community consultation in March 2022 with regard to a proposed public bus service trial.

Following these sessions, it was determined that a proposed service including three routes (810, 811 and 812) would operate from Monday to Friday, three trips per route, for a period of 12 months.

The trial, which will commence in July 2022 is expected to improve public transport options and access to the Esperance town centre and surrounding suburbs

Trails Master Plan

Following announcement of the Trails Master Plan Project in the 2020/2021 Annual Report, the Plan is still in development, however a draft has been compiled. The Shire will progress the project in the 2022/2023 year with available resources.

Maintaining, upgrading and planning for present and future infrastructure to service the community

Asset Operations

The Dempster Street Roundabout project is progressing well, with asphalting completed in May, creation of traffic islands progressing and landscaping commenced.

The Fisheries Road project has seen sealing completed and signage installed in March. Line marking has commenced for the safety of all drivers. Installation of new rail guards will be completed under traffic management.

Two important regional road safety projects include sealing of road shoulders (where required), installation of audio tactile line markings and provide centre / edge line marking where missing on Eleven Mile Beach Road and Fisheries Road from Ridgelands Road.

Built Environment

Airport

The Shire of Esperance was offered and accepted the Esperance Airport Air BP contract, commencing officially as the local refuelling agent in September 2021. Included among the changes to airport operations was the addition of a new staff member, with all existing Airport Reporting Officers being cross-trained and upskilled to perform Air BP quality control checks and aircraft refuelling.

Only a year on from the height of the COVID-19 impacts, where many flights locally were either empty or cancelled as the pandemic spread, passenger numbers between Perth and Esperance have rebounded strongly. Workers in the ‘Air Services’ sector were mandated by the State Government to be fully vaccinated by 1 January 2022, all Shire Airport employees were and are, with all tenants and regular users of the airport being contacted to ensure they were aware of the requirements.

Works are currently progressing on assessing the condition of the main sealed runway, with Airport Consultancy Group (ACG) engaged to test the strength, friction, geotechnical and surface life characteristics as existing, all of which will be used to inform a formal surface treatment options report. That in turn will then guide runway development and enhancements in the short to medium term.

49,859

Passengers travelled by air

Planning Services

Amendment Number 7 to the Shire of Esperance Local Planning Scheme, Planning and Development Act 2005 was Gazetted in January, with Amendment Number 8 being initiated by Council at the April meeting. Amendment Number 8 is currently undergoing assessment and should be released for public comment in the coming year. The draft Blue Haven and Second Beach Local Planning Policy was adopted by Council in October. The recent Holiday House Review has included a call for feedback, which is due for completion by August 2022

Asset Development

Civil surveying has been undertaken for various areas to assist with road construction works and line marking projects, and drone flights for material volume surveys have been completed.

A Water Corporation start-up meeting has been arranged for the Flinders Stage 4 Project, and site meetings undertaken with the developer on the Spencer Road development.

Design works are in progress for the following;

• The Esplanade Roundabout; design and majority of construction was completed and we are awaiting completion of power/lighting installation and landscaping.

• Brazier Street fuel depot access road;

• Forrest Street parking;

Property Sales/Purchases

Council were updated on the Shark Lake Industrial Park during July 2021 and the availability of land for industrial purposes in Esperance. Currently there are only seven residential properties remaining for sale (four in Flinders, two on Hockey Place and one on Voile Lane), while there are still 26 properties available in Shark Lake Industrial park.

• Padbury Street (the left turn island installation was completed by end of financial year) and Bandy Creek Road shared paths (awaiting section 18 approval to undertake works in an Aboriginal Heritage Area;

• Ocean Street subdivision sewer and water supply infrastructure;

• Foreshore sand return line;

• Airport hangar area drainage design was completed and issued to Airport Coordinator for comment; and

• Cattle grid installation initial designs completed.

The team also undertook several designs for future year regional group projects on Cascade Road, Neds Corner Road and Myrup Road.

Natural Environment

N1 Raise awareness and increase education on environmental issues

Environmental Partnerships

The Environmental Services team partnered with the Esperance Tjaltjraak Native Title Aboriginal Corporation (ETNTAC) Aboriginal Rangers, Esperance Senior High School Bushrangers, Wongutha CAP Bushrangers and numerous school groups throughout the year to implement a range of coastal and reserve restoration activities including:

• Woody weed control of Victorian Tea Tree at Lake Monjingup Reserve

• Winter rehabilitation planting programs; and

• Project collaborations in reserve management.

Environmental Services staff attended Esperance Wildflower Society, Esperance Weed Action Group, local Natural Resource Management (NRM) Reference Group and Lake Warden / Gore Technical Advisory Group meetings during the year. The team also assisted in flora displays, technical support and species collection for the 2021 Esperance Wildflower Festival.

During an Environmental Impact Assessment in September, Shire Environmental staff discovered a new species of plant - Acrotriche sp. Cascade. Acrotriche sp. Cascade is a spreading multi-stemmed shrub growing up to 60cm tall and 2 metres wide, flowering and beginning to fruit in mid-September.

Both mature and immature fruit were present on the plant in mid-January, suggesting a potentially long flowering period. The undersides of the leaves are a distinctive pale green and fruit a distinctive oval/disk like shape with ribbing.

Coastal Projects

In March 2022, Council resolved to accept a proposal to formally name the land known as Duke of Orleans Bay Regional Park, as Tjaltjraak Boodja Park. This recognises the cultural significance of the land as there are currently a number of Registered Aboriginal Heritage Sites as well as a number of Lodged Sites on the reserve.

The Shire continued coastal restoration works in partnership with ETNTAC around Tjaltjraak Boodja Park, with a focus on Wharton Beach and the Duke of Orleans Bay during the year following receipt of Coastwest funding from the Department of Planning, Lands and Heritage in 2020/2021.

A desktop review of the Coastal Management Plan is underway, with a consultant expected to provide the stage one report shortly to assist with the review of the Plan.

Staff worked with the ETNTAC Ranger Team to re-instate access closures onto Pink Lake and attended a set up meeting to discuss cultural values and heritage information on signage at the Pink Lake lookout.

Pink Lake Feasibility Study

Following Council endorsement in August 2020, the Shire partnered with a WA University to host a student to work on this project. Research is progressing well, with the student recently in town completing site investigation works

Sand Backpassing Trial

A report was put to Council in June 2022 providing an update on the sand back-passing trial being undertaken with the Department of Transport to utilise dredged sand from Bandy Creek to nourish eroding sections of Castletown Quays Beach.

Following conclusion of the back-passing operation in September 2021, the site was surveyed by the Department of Transport to monitor sand movement. The survey shows that the sand loss is on track with expectations.

As a result of this update, Council resolved to seek funding for the installation of permanent back-passing infrastructure to allow backpassing to occur biennially at a significantly reduced cost.

It is anticipated that the permanent infrastructure will be installed prior to the next dredging program commencing, which is scheduled for May 2023

Parks & Environment

The treated waste water supply from Water Corporation ceased while Water Corporation worked to improve the quality of the reuse water supplied. Shire staff and contractors used this time to clean the Eastern Suburbs Water Supply water storage tanks, and supplied bore water only for irrigation until the Water Corporation situation was resolved.

Further consultation regarding future playground upgrades as a part of the delivery of the Public Open Space Strategy will be undertaken as we are nearly half way through the delivery of the 10-year capital works program associated with the Strategy.

Additional lighting was installed at Adventureland Park with support from the Southern Ports Authority and it is hoped this may reduce the instances of vandalism to the park infrastructure.

The stand of Tuart trees at Esperance oval, and some from the Greater Sports Ground were removed in January and February due to conflict with existing infrastructure at Esperance Oval and development of the access road around Ports Oval.

Timber from the trees was donated to the Royal Flying Doctor Service, and will also be utilised by community groups and in Shire capital projects. Replacement trees will be considered for both areas in the future.

6,500seedlings

Natural Environment

Waste Revolution

Following promotion during October, the Garage Sale Trail was successfully held over two weekends in November 2021.

The Waste Education Officer continued to deliver community education workshops consistent with the Community Waste Engagement Plan. These included a Waste Warrior Workshop at the Cannery, a Plastic Free July promotion at the Museum Markets, and a presentation about the Climate Clever program.

Tours of the Wylie Bay MRF have continued to gain interest, tours have included the Condingup Country Women’s Association and Castletown Primary School with 75 Students plus teachers, parents and carers attending. Shire Waste staff continued to support the Tangaroa Blue WA Beach Clean Up for the sixth year running; and 2021 saw the Carmel Adventist School participate in the cleanup at West Beach in November 2021.

Esperance Waste Revolution social media pages continued to grow, particularly our Instagram reach that increased by 182% over the year. Our Facebook posts reached over 8,000 people but this was down 25% from the previous year.

FOGO

Council adopted the Food Organics and Garden Organics (FOGO) Communications and Engagement Strategy during the January 2022 Ordinary Council Meeting.

The Waste Management Team attended the Esperance Agricultural Show in the Shire stall to gauge public interest around the upcoming FOGO rollout via a survey.

The survey was also promoted at the Esperance Boulevard Shopping Centre where staff manned a stall for a day as well as having the survey online and at shire buildings where community frequent, including the Administration Building and the Library. FOGO proved favorable with the community and has been endorsed by Council.

The commencement of FOGO will coincide with the future delivery of the Myrup Waste Transfer Station. The Detailed Concept Design process for the Project will define the design of the FOGO system and the whole of life, plus operational, costs of the process.

The Shire was awarded a Better Bins grant to supplement the purchase of bins for the FOGO program.

Transfer Station

The Detailed Concept Design phase for the Myrup Waste Transfer Station is progressing.

Council were briefed on the proposed design of the Transfer Station in December 2021, with a formal presentation at the January 2022 Ordinary Council Meeting. Following this meeting, staff have been focused preparing Detailed Construction Plans for the facility.

N2 Targeted reduction of waste with an emphasis on resource recovery and waste minimisation

Waste Management

Over 1,000m3 of asbestos contaminated soil from an earthworks project was received safely and without any issues over a five-day period in January 2022.

An application was made seeking to alter our licence for the Wylie Bay Waste Facility to extend the final landfilling date to match the construction timing of the Myrup facility and waste being transferred to Coolgardie. It is being assessed by the Department of Water and Environmental Regulation.

Our verge collection pickup was conducted over two weeks in November and was well received by the community, with a bulk bin option available for smaller properties outside of the verge collection area.

Liquid Waste Facility

Following a Request for Quote (RFQ) process, Talis Consultants were engaged to conduct an Operational Review and Capital Needs Assessment of the Myrup Truck Wash and Liquid Waste Facility. Talis attended a site visit in March 2022 and a draft document was received in June 2022. The document was reviewed by key internal stakeholders, and a number of operational and legislative recommendations were highlighted which Shire staff are prioritising and progressing through.

A pump failure in early November caused a temporary shutdown of the Truck Wash side of the facility. All users were notified by SMS of the maintenance works. The shutdown lasted from 1 November through to 8 November 2021; and again, 30 May through to 3 June 2022. No complaints were received during the closure and the maintenance caused minimal disruption for users.

A pond desludging quote was awarded in late March and desludging works commenced in late June 2022.

Exploring alternative renewable energy, minimising waste and protecting our natural environment for everyone to enjoy

Natural Environment

Improve Energy Efficiency of Shire

The Shire has continued to look for ways to improve energy efficiency for Shire owned buildings during the year. We investigated changing the design of heat pumps to eliminate use of gas hot water boilers for the Bay of Isles Leisure Centre, reducing pool heating costs and our carbon footprint. Replacement of fluorescent style tubes with energy efficient LED’s continues, and we are looking at solar films to be applied to windows of the Administration building to reduce heating and cooling costs.

The Solar film is to be applied to windows of the administration building once the manufacturer confirms suitability of the film in our coastal environment.

The Shire has procured Hybrid cars as part of its light vehicle fleet to assist with the reduction of carbon. Fuel consumption is considered when purchasing every vehicle or item of fleet.

Electric Vehicle Charging Stations

In May, Council approved a request from Horizon Power to licence a small area of land between the War Memorial and Sports House. Fast electric vehicle (EV) chargers will be built at the site, allowing up to four cars to charge at one time.

The new chargers will expand the local public EV charger network, and provide certainty around availability of fast public chargers for members of the local community and visitors, encouraging the switch to cleaner transport.

Cities Power Partnership

The Shire committed to five pledges in June 2020 to officially join the Cities Power Partnership. In doing so, the Shire joined Australia’s largest local government climate network, made up of 123 councils from across the country, working together to tackle climate change.

Our procedures have since been updated, ensuring that the changes become business as usual activities across the organisation.

In August, Council endorsed the Shire of Esperance Climate Change Declaration which will see the Shire encourage and empower the local community and businesses to reduce their greenhouse gas emissions and to adapt to the impacts of climate change.

The Shire of Esperance partnered with ClimateClever, a free online platform that can be used by local households, schools and businesses to learn how to reduce their utility costs and their carbon footprint. We hosted a Community Information Session via Zoom in March 2022 with Luke from ClimateClever to discuss the platform, demo the App and answer any questions.

N3 Build capacity, educate and encourage the community to self-manage minimising resource consumption

Regional Climate Alliance

In July, the Goldfields Voluntary Regional Organisation of Councils (GVROC) was announced as one of the two successful applicants to establish a Regional Climate Alliance.

The $500,000 Regional Climate Alliance pilot program is part of the Western Australian Climate Policy, and encourages regional local governments to work together to address climate change and reduce greenhouse gas emissions.

GVROC includes the City of KalgoorlieBoulder, and the Shires of Coolgardie, Dundas, Esperance, Laverton, Leonora, Menzies, Ngaanyatjarraku and Wiluna, and will progress projects that reduce the increased risk of bushfires, mitigate the impacts of drought and improve the uptake of renewable energy and energy efficiency solutions.

The Regional Climate Alliance program is overseen by the Department of Water and Environmental Regulation and Department of Local Government, Sport and Cultural Industries in partnership with the Western Australian Local Government Association.

Exploring alternative renewable energy, minimising waste and protecting our natural environment for everyone to enjoy

Growth & Prosperity

James Street Precinct

The James Street Cultural Precinct is one step closer after Council endorsed the James Street Cultural Precinct Development Plan at the March 2022 Council Meeting.

The Development Plan splits staging and implementation into a series of packages, with the Library being the major component of Package 1 – Cultural and Tourism Hub. In order to progress this, detailed planning will also need to be undertaken on Package 2 – Goods Shed Redevelopment and Package 3(b) –Village Green.

The next stage of the project is to secure a suitability qualified consultant for delivery of a detailed concept design, business case and costings for the priority development packages, and is expected to take place in the coming finanical year.

Flinders Subdivision

Flinders Stage 4 has now been designed and put out for tender, with the contract awarded to Sime Building. Construction works are planned to start in August 2022 with an estimated completion by February 2023.

A design tender for Flinders Stage 3 is expected to be released next year.

G2 Develop partnerships to strengthen economic growth

Blue Waters Lodge

The Blue Waters Lodge continues to provide an important service to town by providing accommodation for local workers unable to access residential accommodation.

Due to the high demand, Thorp Realty has been contracted to assist with tenant management to ensure that service levels are maintained.

G1 Promote the Esperance lifestyle using environmental, built, cultural and social assets

Economic Development

In June, following collaboration with Australia’s Golden Outback, the Shire released an ‘Invest in Esperance’ prospectus. The Investment Prospectus provides an insight into some of the opportunities currently available and our ambitions for the region.

Feedback was gained from Thorp Realty and The Professionals with regard to the current rental situation, and we continue to look at ways to resolve this. Meetings have been held with several businesses, with discussion on additional accommodation for workers being a common theme. A scope of work is currently being developed to assist with demand in this area, and the Shire is also undertaking projects to better understand the current housing shortage and options with assistance from the Goldfields-Esperance Development Commission.

The redevelopment of the RAC Holiday Park was completed, with the site opening in December in time for the holiday season. The Park has been a popular choice for visitors, being fully booked since its reopening.

We welcomed the French Ambassador over two days in April as part of the Twin Towns relationship, with a breakfast with the Twin Towns Committee and previous exchange students.

Shire staff attended Chamber of Commerce and Industry WA events to support the Esperance CCI to continue to build relationships within the business community. We also attended a Tourism WA Shaping the Future of Tourism Workshop, and Shaping our Future seminar.

The Shire supported the presentation of a procurement workshop to assist local businesses in understanding how they can gain access to work through local and state governments.

Support was provided to the Cascade District Recreation Association as they undertake a strategic planning exercise to understand the needs and desires of the local Cascade community with regard to future development of the Cascade townsite.

Beam e-Scooters put forward a proposal to operate 70 e-scooters to provide an alternative transport option for Esperance. This was supported by Council, with operations commencing in town in December 2021.

Promoting Esperance as a place to live, work, invest and visit to encourage growth in our region ensuring we have a prosperous future.

Growth & Prosperity

G3 Lead the promotion of Esperance as a destination of choice

Visitors Centre

The Esperance Visitor Centre is participating in a mentoring program via Australia’s Golden Outback, focused on identifying product and service offerings that have the potential to enhance the experience of visitors to the region and further supporting our local operators.

Additional product and service offerings that can be offered via the website are being explored to leverage off the increased web-based traffic volumes currently being experienced.

Package and Itinerary Building capacity is currently being developed for the Visit Esperance website to better leverage off the visitors to the site and support our local businesses

With the ongoing closure of interstate and international borders until March 2022, sales of bus tickets and National Parks passes continued at lower levels than previous years.

Even though there were ongoing impacts from COVID in the early part of the 2021/2022 financial year, the Visitor Centre still provided service to a significant number of people.

Over the 12 months there were 83,895 visits to the centre. Even though visits were slightly down, souvenir sales were stronger than any previous years, with the biggest growth being in the locally produced area.

TransWA bus ticket sales, National Parks passes and accommodation, and tour bookings were down on last year. National Park passes were impacted by the lack of interstate and international visitors, with sales being consistent with last year over the months that interstate visitors were able to visit WA. While accommodation and tour bookings were down on the previous year they were still the second strongest year on record.

Online ratings of the service provided by the Visitor Centre staff were exceptional (and the best on record) with an average rating of 4.46/5 over the year.

The annual pre-peak season sundowner held at the Visitor Centre in December was very successful with in excess of 50 attendees. A second tourism sundowner hosted by the Visitor Centre and held at the RAC Holiday Park in June was also attended by approximately 50 attendees.

These events provide an opportunity for a range of information to be able to be discussed within the industry at the same time as making sure businesses are better connected to enable them to work in partnership.

Tourism Strategy

To increase visitor numbers and promote our region, the Shire participated in a range of tourism activities throughout the year, including:

• A Tourism WA workshop, focusing on the development of a regional Tourism Destination Development Plan;

• Publishing a feature in the Skippers November / December inflight magazine, encouraging people to visit and stay in Esperance;

• Preparatory work on the Australia’s Golden Outback Holiday Guide and advertisement;

• Working with the new RAC Holiday Park to stock visitor information;

• The appointment of a Tourism Development Manager, who will work closely with industry to promote our region;

• Funding of a banner, flown over the beaches in Perth advertising ‘The Beaches Are Whiter in Esperance’;

• Promotion of our town in a Destinations WA episode;

• Negotiating a free of charge fortnightly tourism column in the Esperance Weekender; and

• Working with the Visitor Centre to apply for the GWN7’s Top Tourism Town Awards.

The Tourism Stakeholder Working Group was formed in March, to work with the community, industry and Tourism Development Manager on a range of opportunities.

We also developed a partnership with the Kalgoorlie-Boulder Esperance Aviation Route, and developed a new Esperance Visitors Guide to present a more inclusive view of Esperance.

Tourism Australia has funded filming of five Esperance operators over a period of one week. This venture will generate domestic and international exposure for Esperance.

We also met with Southern Ports to discuss Cruise Ship opportunities, with three cruises now confirmed.

Promoting Esperance as a place to live, work, invest and visit to encourage growth in our region ensuring we have a prosperous future.

Growth & Prosperity

G4 Lobby for infrastructure and capacity necessary to support business growth

The Shire placed a motion on the WALGA agenda for increased State funding for telecommunications and shared this position with the Goldfields Voluntary Regional Organisation of Councils (GVROC) and Regional Capitals Alliance WA (RCAWA).

We also provided input into the draft Infrastructure WA State Strategy, specifically in relation to improving data technology and water security. This Strategy outlines the State’s significant infrastructure needs and priorities, and provides a long-term vision and infrastructure outlook.

We have been working with DWER on National Water Grid Connection funds to allow the State to improve community water supplies. Improvements for the program have been identified for Grass Patch and Salmon Gums, mainly around improvements to the catchments.

Grass Patch and Salmon Gums were declared as water deficient in March 2022 due to lack of rain resulting in low available water supplies. Water deficiency declarations are issued by the State Government to allow for emergency water carting to farmers to address livestock water needs during very dry periods.

Telecommunications

The Shire provided a letter of support for Telstra to seek funding to upgrade the mobile phone towers in Esperance.

The Regional Connectivity Program has allocated funding of just over $1.1m to improve voice and data connectivity in Esperance by deploying three new Telstra macro mobile sites and one new Telstra Small Cell mobile site.

The macro sites will deliver improved connectivity at Pink Lake South, Myrup, and Bandy Creek, while the new small cell will deliver improved connectivity at Munglinup Camp.

Gas Distribution

The Hon. Bill Johnston, Minister for Energy met with our community in regard to an extension of the gas contract for a further 12 months, and the process for transitioning customers off reticulated gas. The transition is estimated to be completed by 31 March 2023.

The Shire further met with the Office of Energy in relation to the Esperance Gas reticulation system, with discussion focusing on Government support for the transition of households and businesses from reticulated gas to either electric or LPG appliances.

Information was provided to Horizon Power for the Shire’s use of the reticulated gas system for Shire managed facilities, and our transition plan for each facility.

G5 Lobby for new industries that add value to established industries

The Executive Team received a briefing from Fortescue Future Industries on their proposed green hydrogen project, to gain an understanding of the potential impacts to the community if it were to proceed.

Representatives from Allup Silica met with Directors with regard to their local exploration activities. The Esperance Silica Exploration Project is understood to consist of three tenements, two of which are known as Pink Bark, located between Salmon Gums and Grass Patch, while the third is known as Dune Buggy and is located 20km west of the Port. No exploration has been conducted to date other than desktop geological interpretation and visual inspections at the surface for these areas.

The Shire accepted a request from Meeka Gold to do exploration drilling on a number of road reserves within the Shire, which is expected to take place in the second half of 2022, predominantly focusing around the Cascade area.

Aquaculture

The Shire of Esperance provided a letter of support to Rare Foods Australia Pty Ltd, previously Ocean Grown Abalone, to assist with a funding application for their Esperance Abalone Farm Project.

The bankable feasibility study is continuing with the lease being extended for a further 12 months to support the project following publicly announced project delays. A presentation was made to Council to provide an update on the current progress.

Promoting Esperance as a place to live, work, invest and visit to encourage growth in our region ensuring we have a prosperous future.

Statutory Requirements

CEO Remuneration

The Total Reward Package provided to the CEO of the Shire of Esperance for the 2021/2022 financial year was $278,068.

This is within the relevant Local Government Band Classification (Band 2 $206,500$319,752).

The position of CEO at the Shire of Esperance is eligible for a $25,000 Regional/Location Allowance, awarded at the Shire’s discretion, however the Shire chooses not to pay this allowance.

Employee Salary Bands

Pursuant to Regulation 19B of the Local Government (Administration) Regulations 1996, Table 1 sets out, in bands of $10,000, the number of Shire employees entitled to an annual salary of $130,000 or more.

Table 1: Employee Remuneration

2021/22 2020/21

$130,000 - $139,999 2 1

$140,000 - $149,999

$150,000 - $159,999 2 3

$160,000 - $169,999 1

$170,000 - $179,999

$180,000 - $189,999

$190,000 - $199,999

$200,000 - $209,999

$210,000 - $219,999

$220,000 - $229,999

$230,000 - $239,000

$240,000 - $249,999

*CEO not included.

Complaints and Payments

Section 5.53(2)(hb) of the Local Government Act 1995 requires the Annual Report to contain details of entries made under section 5.121 during the financial year in the Register of Complaints.

There were no complaints made under this section in the 2021/2022 financial year.

No remuneration or allowances were paid by the Shire under Schedule 5.1 clause 9, and no amount was ordered under section 5.110(6) (b)(iv) to be paid by a person against whom a complaint was made under section 5.107(1), 5.109(1) or 5.114(1).

These clauses deal with remuneration, allowances and amounts ordered to be paid as a result of complaints against Council Members.

As there were no complaints, there have also been no remuneration, allowances or amounts ordered to be paid.

Freedom of Information Requests

In Western Australia, the Freedom of Information Act 1992 (the Act), gives the public a right to access government documents, subject to some limitations. The following table outlines the FOI requests received and average processing days taken for the past three financial years.

An external review of an application from the previous financial year occured, with the Commissioner upholding the original decision.

In accordance with Section 96 and 97 of the Act, the Shire is required to publish an Information Statement which details the process for applying for information under the Act as well as information that the Shire provides outside the Act. This Information Statement is available on the Shire of Esperance website.

2021/22 2020/21 2019/20

FOI Requests Received 3 2 5

Average processing time (Days) 34 38 40

Access in Full - - 2

Access with Restrictions (Edited) 3 1 3

Access Refused - -Withdrawn - 1 -

State Records Act

The State Records Act 2000 requires the Shire to have an approved Recordkeeping Plan to detail the way the Shire keeps its records.

Following the expiry of the Shire’s 2017 – 2022 Recordkeeping Plan, the Shire submitted a Recordkeeping Plan Review Report.

On 5 April 2022, the State Records Commission of WA approved the continuation of the Shire’s Recordkeeping Plan for an additional 2 years, with a new plan to be submitted on or before 17 March 2024.

The Shire’s recordkeeping systems are continuously reviewed and developed to improve efficiency, reliability and meet new requirements. A total of 65,951 records were captured into the Shire’s corporate recordkeeping system during this period.

As part of the Staff Induction Program, employees are informed of their recordkeeping obligations. 26 new staff were provided record keeping awareness training during 2021/2022. Additional training sessions for the Shire’s recordkeeping system are performed on a regular basis.

Elected Members receive training in their recordkeeping obligations and the associated process at the commencement of their term of office. Regular updates are provided to Elected Members through their normal communication channels.

2021 - 2022

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

TABLE OF CONTENTS

Certification of Financial Report 2

Statement of Comprehensive Income by Nature or Type 3

Statement of Financial Position 4

Statement of Changes in Equity 5

Statement of Cash Flows 6

Rate Setting Statement 7

Index of Notes to the Financial Report 8

Independent Auditor's Report 56

The Shire of Esperance conducts the operations of a local government with the following community vision:

The Shire of Esperance exists to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperity.

Esperance, together we make it happen

Principal place of business:

Administration Offices Windich Street Esperance WA 6450

Shire of Esperance Annual Financial Report

Statement of Comprehensive Income by Nature and Type

For the year ended 30th June 2022 2022 2022 2021 NOTE Actual Budget Actual $ $ $

Revenue

Rates 24(a),2(a) 22,115,030 22,076,294 21,513,319

Operating grants, subsidies and contributions 2(a) 16,828,512 8,627,838 10,224,432 Fees and charges 23(c),2(a) 10,262,139 9,445,366 9,040,472

Interest earnings 2(a) 249,537 286,846 294,421 Other revenue 2(a) 827,320 741,160 880,382 50,282,538 41,177,504 41,953,026

Expenses

Employee costs (18,432,247) (18,163,351) (16,620,402)

Materials and contracts (10,894,438) (12,096,536) (9,729,137)

Utility charges (1,356,927) (1,127,822) (1,203,164) Depreciation 10(a) (19,333,077) (17,625,921) (17,671,550)

Finance costs 2(b) (96,365) (85,614) (94,820) Insurance (745,776) (779,697) (667,747)

Other expenditure 2(b) (607,075) (635,956) (811,465) (51,465,905) (50,514,897) (46,798,285) (1,183,367) (9,337,393) (4,845,259)

Capital grants, subsidies and contributions 2(a) 10,643,976 16,557,813 10,272,118 Profit on asset disposals 10(b) 383,422 292,496 957,096 Loss on asset disposals 10(b) (202,379) (588,643) (196,058) 10,825,019 16,261,666 11,033,156

Net result for the period 23(b) 9,641,652 6,924,273 6,187,897

Total other comprehensive income for the period 17 0 0 0

Total comprehensive income for the period 9,641,652 6,924,273 6,187,897 This statement is to be read in conjunction with the accompanying notes.

Shire of Esperance Annual Financial Report

As at 30 June 2022

Statement of Financial Position

NOTE 2022 2021 $ $

CURRENT ASSETS

Cash and cash equivalents 3 41,857,599 29,990,480 Trade and other receivables 5 1,497,774 1,330,385 Other financial assets 4(a) 198,228 169,328 Inventories 6 528,956 404,157 Other assets 7 915,171 126,331

TOTAL CURRENT ASSETS 44,997,728 32,020,681

NON-CURRENT ASSETS

Trade and other receivables 5 97,459 103,126 Other financial assets 4(b) 1,722,090 10,373,790 Inventories 6 3,774,582 3,893,859 Property, plant and equipment 8 102,983,171 102,446,053 Infrastructure 9 419,840,748 414,978,488 Right-of-use assets 11(a) 31,416 44,621

TOTAL NON-CURRENT ASSETS 528,449,466 531,839,937

TOTAL ASSETS 573,447,194 563,860,618

CURRENT LIABILITIES

Trade and other payables 12 3,105,086 3,812,652 Other liabilities 13 2,211,302 2,588,954 Lease liabilities 11(b) 23,105 22,310 Borrowings 14 250,645 219,453 Employee related provisions 15 3,126,337 2,914,416

TOTAL CURRENT LIABILITIES 8,716,475 9,557,785

NON-CURRENT LIABILITIES

Lease liabilities 11(b) 5,767 22,900 Borrowings 14 2,261,724 1,772,834 Employee related provisions 15 222,392 293,399 Other provisions 16 5,693,373 5,307,889

TOTAL NON-CURRENT LIABILITIES 8,183,256 7,397,022

TOTAL LIABILITIES 16,899,731 16,954,807

NET ASSETS 556,547,463 546,905,811

EQUITY

Retained surplus 314,224,048 309,311,629 Reserve accounts 27 33,959,332 29,230,099 Revaluation surplus 17 208,364,083 208,364,083

TOTAL EQUITY 556,547,463 546,905,811

This statement is to be read in conjunction with the accompanying notes.

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

Statement of Changes in Equity

RETAINED RESERVE REVALUATION TOTAL NOTE SURPLUS ACCOUNTS SURPLUS EQUITY $ $ $ $

Balance as at 1 July 2020 302,362,354 29,991,477 208,364,083 540,717,914

Comprehensive income for the period Net result for the period 6,187,897 0 0 6,187,897

Total comprehensive income for the period 6,187,897 0 0 6,187,897

Transfers from reserves 27 10,260,610 (10,260,610) 0 0

Transfers to reserves 27 (9,499,232) 9,499,232 0 0

Balance as at 30 June 2021 309,311,629 29,230,099 208,364,083 546,905,811

Comprehensive income for the period Net result for the period 9,641,652 0 0 9,641,652

Total comprehensive income for the period 9,641,652 0 0 9,641,652

Transfers from reserves 27 5,708,087 (5,708,087) 0 0

Transfers to reserves 27 (10,437,320) 10,437,320 0 0

Balance as at 30 June 2022 314,224,048 33,959,332 208,364,083 556,547,463

This statement is to be read in conjunction with the accompanying notes.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

2022 2022 2021 NOTE Actual Budget Actual $ $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Rates

22,289,334 22,086,294 21,452,993

Operating grants, subsidies and contributions 16,241,306 7,969,838 12,441,164

Fees and charges 10,647,623 9,445,366 9,656,777

Interest received 249,537 241,550 294,421

Goods and services tax received 1,142,967 125,000 967,188

Other revenue 827,320 786,456 880,382 51,398,087 40,654,504 45,692,925

Payments

Employee costs (18,091,111) (18,193,351) (16,245,142)

Materials and contracts (12,683,182) (11,898,036) (10,608,659)

Utility charges (1,356,927) (1,127,822) (1,203,164)

Finance costs (93,807) (86,114) (95,978)

Insurance paid (745,776) (779,697) (667,747)

Goods and services tax paid (1,318,094) (125,000) (842,190)

Other expenditure (607,075) (635,956) (811,465) (34,895,972) (32,845,976) (30,474,345)

Net cash provided by (used in) operating activities 18(b) 16,502,115 7,808,528 15,218,580

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for financial assets at amortised cost 0 0 182,242

Payments for financial assets at amortised cost - self supporting loans (750,000) (800,000) (20,000)

Payments for development of land held for resale (142,115) (970,954) (74,344)

Payments for purchase of property, plant & equipment 8(a) (6,007,953) (10,471,160) (4,473,495)

Payments for construction of infrastructure 9(a) (19,791,743) (26,544,827) (22,233,751)

Non-operating grants, subsidies and contributions 10,643,976 16,557,813 10,272,118

Proceeds from financial assets at amortised cost 9,200,000 0 (9,200,000)

Proceeds from financial assets at amortised cost - self supporting loans 179,794 169,328 163,005

Proceeds from financial assets at fair values through profit and loss - Local Government House Trust (6,994) 0 (6,542)

Proceeds from sale of property, plant & equipment 10(b) 1,536,297 1,483,500 2,945,730

Net cash provided by (used in) investing activities (5,138,738) (20,576,300) (22,445,037)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings 26(a) (229,920) (219,454) (210,940)

Payments for principal portion of lease liabilities 26(c) (16,338) (22,310) (27,377)

Proceeds from new borrowings 26(a) 750,000 800,000 20,000

Net cash provided by (used In) financing activities 503,742 558,236 (218,317)

Net increase (decrease) in cash held 11,867,119 (12,209,536) (7,444,774)

Cash at beginning of year 29,990,480 39,190,481 37,435,254

Cash and cash equivalents at the end of the year 18(a) 41,857,599 26,980,945 29,990,480

This statement is to be read in conjunction with the accompanying notes.

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

2022 2022 2021

NOTE Actual Budget Actual $ $ $

NET CURRENT ASSETS - At start of financial year - surplus/(deficit) 25(b) 3,959,285 4,469,126 3,927,680

OPERATING ACTIVITIES

Revenue from operating activities (excluding general rate)

Rates (excluding general rate) 24(b) 417,529 323,270 525,059

Operating grants, subsidies and contributions 16,828,512 8,627,838 10,224,432

Fees and charges 10,262,139 9,445,366 9,040,472

Interest earnings 249,537 286,846 294,421

Other revenue 827,320 741,160 880,382

Profit on asset disposals 10(b) 383,422 292,496 957,096 28,968,459 19,716,976 21,921,862

Expenditure from operating activities

Employee costs (18,432,247) (18,163,351) (16,620,402)

Materials and contracts (10,894,438) (12,096,536) (9,729,142)

Utility charges (1,356,927) (1,127,822) (1,203,164)

Depreciation (19,333,077) (17,625,921) (17,671,550)

Finance costs (96,365) (85,614) (94,820) Insurance (745,776) (779,697) (667,747) Other expenditure (607,075) (635,956) (811,465)

Loss on asset disposals 10(b) (202,379) (588,643) (196,058) (51,668,284) (51,103,540) (46,994,348)

Non-cash amounts excluded from operating activities 25(a) 19,526,468 17,889,485 16,474,990 Amount attributable to operating activities (3,173,357) (13,497,079) (4,669,816)

INVESTING ACTIVITIES

Non-operating grants, subsidies and contributions 10,643,976 16,557,813 10,272,118

Proceeds from disposal of assets 10(b) 1,536,297 1,483,500 2,945,730

Proceeds from financial assets at amortised cost - self supporting loans 26(a) 179,794 169,328 163,005

Payments for financial assets at amortised cost - self supporting loans (750,000) (800,000) (20,000) Proceeds from financial assets at fair values through profit and lossLocal Government House Trust (6,994) 0 (6,542) Payments for investments in associates (142,115) (970,954) (74,344)

Purchase of property, plant and equipment 8(a) (6,007,953) (10,471,160) (4,473,495) Purchase and construction of infrastructure 9(a) (19,791,743) (26,544,827) (22,233,751) (14,338,738) (20,576,300) (13,427,279)

Amount attributable to investing activities (14,338,738) (20,576,300) (13,427,279)

FINANCING ACTIVITIES

Repayment of borrowings 26(a) (229,920) (219,454) (210,940)

Proceeds from borrowings 26(a) 750,000 800,000 20,000 Payments for principal portion of lease liabilities 26(c) (16,338) (22,310) (27,377)

Transfers to reserves (restricted assets) 27 (10,437,320) (2,476,424) (9,499,232)

Transfers from reserves (restricted assets) 27 5,708,087 9,501,524 10,260,610

Amount attributable to financing activities (4,225,491) 7,627,956 543,061

Surplus/(deficit) before imposition of general rates (17,778,301) (21,976,294) (17,554,034) Total amount raised from general rates 24(a) 21,697,501 21,976,294 21,513,319 Surplus/(deficit) after imposition of general rates 25(b) 3,919,200 0 3,959,285

This statement is to be read in conjunction with the accompanying notes.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Index of Notes

Note 1 Basis of Preparation 9

Note 2 Revenue and Expenses 10

Note 3 Cash and Cash Equivalents 12

Note 4 Other Financial Assets 12

Note 5 Trade and Other Receivables 13

Note 6 Inventories 14

Note 7 Other Assets 15

Note 8 Property, Plant and Equipment 16

Note 9 Infrastructure 18

Note 10 Fixed Assets 20

Note 11 Leases 23

Note 12 Trade and Other Payables 25

Note 13 Other Liabilities 26

Note 14 Borrowings 27

Note 15 Employee Related Provisions 28

Note 16 Other Provisions 29

Note 17 Revaluation Surplus 30

Note 18 Notes to the Statement of Cash Flows 31

Note 19 Related Party Transactions 32

Note 20 Joint Arrangements 34

Note 21 Financial Risk Management 35

Note 22 Other Significant Accounting Policies 39

Note 23 Function and Activity 40

Note 24 Rating Information 43

Note 25 Rate Setting Statement Information 46

Note 26 Borrowing and Lease Liabilities 47

Note 27 Reserve accounts 50

Note 28 Trust Funds 52

Note 29 Major Land Transactions 53

Note 30 Trading Undertakings and Major Trading Undertakings 55

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

1. BASIS OF PREPARATION

The financial report comprises general purpose financial

The local government reporting entity statements which have been prepared in accordance with All funds through which the Shire controls resources to carry the Local Government Act 1995 and accompanying regulations. on its functions have been included in the financial statements forming part of this financial report.

Local Government Act 1995 requirements Section 6.4(2) of the Local Government Act 1995 read with the Local

All monies held in the Trust Fund are excluded from Government (Financial Management) Regulations 1996 prescribe that the financial statements. A separate statement of those the financial report be prepared in accordance with the Local monies appears at Note 28 of the financial report. Government Act 1995 and, to the extent that they are not inconsistent with the Act, the Australian Accounting Standards. The Australian Judgements and estimates Accounting Standards (as they apply to local governments and not-for- The preparation of a financial report in conformity with profit entities) and Interpretations of the Australian Accounting Australian Accounting Standards requires management Standards Board were applied where no inconsistencies exist. to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets

The Local Government (Financial Management) Regulations 1996 and liabilities, income and expenses. specify that vested land is a right-of-use asset to be measured at cost, and is considered a zero cost concessionary lease. All right-of-use The estimates and associated assumptions are based on assets under zero cost concessionary leases are measured at zero historical experience and various other factors that are cost rather than at fair value, except for vested improvements on believed to be reasonable under the circumstances; the results concessionary land leases such as roads, buildings or other of which form the basis of making the judgements about infrastructure which continue to be reported at fair value, as opposed carrying values of assets and liabilities that are not readily to the vested land which is measured at zero cost. The measurement apparent from other sources. Actual results may differ from of vested improvements at fair value is a departure from AASB 16 these estimates. which would have required the Shire to measure any vested improvements at zero cost. The balances, transactions and disclosures impacted by accounting estimates are as follows:

Accounting policies which have been adopted in the preparation of this financial report have been consistently applied unless stated • estimated fair value of certain financial assets otherwise. Except for cash flow and rate setting information, the • impairment of financial assets financial report has been prepared on the accrual basis and is • estimation of fair values of land and buildings, and infrastructure. based on historical costs, modified, where applicable, by the • estimation uncertainties made in relation to lease accounting measurement at fair value of selected non-current assets, financial • estimation of useful lives of non-current assets assets and liabilities.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

2. REVENUE AND EXPENSES

(a) Revenue

Contracts with customers

Recognition of revenue is dependant on the source of revenue and the associated terms and conditions associated with each source of revenue and recognised as follows:

Revenue Category

Nature of goods and services When obligations typically satisfied Payment terms Returns/Refunds/ Warranties Timing of revenue recognition Operating grants, subsidies and contributions with customers

Community events, facilities, research, design, planning evaluation and services

Fees and charges - licences, registrations, approvals Building, planning, development and animal management

Fees and charges - waste management entry fees Waste treatment, recycling and disposal service at disposal sites

Fees and charges - leisure centre Gym and pool membership fees

Fees and charges - airport landing charges

Over time Fixed terms transfer of funds based on agreed milestones and reporting

Contract obligation if project not complete Output method based on project milestones and/or completion date matched to performance obligations

Single point in time Full payment prior to issue None

Single point in time Payment in advance at gate or on normal trading terms if credit provided

Permission to use facilities and runway

Fees and charges - sale of stock Aviation fuel, kiosk and visitor centre stock

On payment of the licence, registration or approval

None On entry to facility

Over time Payment in full in advance Refund for unused portion on application

Single point in time Monthly in arrears None

Output method over 12 months matched to access right

On landing/departure event.

Single point in time Payment in full in advance Refund for faulty goods Output method based on goods

Other revenue - private works Contracted private works Single point in time Monthly in arrears None

Consideration from contracts with customers is included in the transaction price.

Revenue Recognition

Output method based on works done

Revenue recognised during the year under each basis of recognition by nature or types of goods or services is provided in the table below:

For the year ended 30 June 2022

Nature or type

Contracts with customers Capital grant/contributions Statutory Requirements Other Total $ $ $ $ $

Rates 0 0 22,115,030 0 22,115,030

Operating grants, subsidies and contributions 16,828,512 0 0 0 16,828,512

Fees and charges 10,262,139 0 0 0 10,262,139

Interest earnings 55,935 0 46,841 146,761 249,537 Other revenue 827,320 0 0 0 827,320 Non-operating grants, subsidies and contributions 0 10,643,976 0 0 10,643,976

Total 27,973,906 10,643,976 22,161,871 146,761 60,926,514

For the year ended 30 June 2021

Nature or type

Contracts with customers Capital grant/contributions

Statutory Requirements Other Total $ $ $ $ $

Rates 0 0 21,513,319 0 21,513,319

Operating grants, subsidies and contributions 10,224,432 0 0 0 10,224,432

Fees and charges 9,040,472 0 0 0 9,040,472

Interest earnings 0 0 47,503 246,918 294,421

Other revenue 880,382 0 0 0 880,382

Non-operating grants, subsidies and contributions 0 10,272,118 0 0 10,272,118

Total 20,145,286 10,272,118 21,560,822 246,918 52,225,144

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

2. REVENUE AND EXPENSES (Continued)

Interest earnings

2022 2022 2021

Note Actual Budget Actual

Financial assets at amortised cost - self supporting loans 55,935 45,296 51,660 Interest on reserve funds 86,266 140,971 142,722 Rates instalment and penalty interest (refer Note 24(e)) 46,841 51,000 47,503 Other interest earnings 60,495 49,579 52,536 249,537 286,846 294,421

(b) Expenses

Auditors remuneration - Audit of the Annual Financial Report 58,000 40,000 56,000 - Other services 4,400 16,000 10,678 62,400 56,000 66,678

Finance costs

Borrowings 26(a) 95,780 85,146 93,987 Lease liabilities 26(c) 585 468 833 96,365 85,614 94,820

Other expenditure Sundry expenses 607,075 635,956 811,465 607,075 635,956 811,465

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

3. CASH AND CASH EQUIVALENTS

Notes to and forming part of the Financial Report

Note 2022 2021 $ $

Cash at bank and on hand 12,857,599 22,990,480 Term deposits 29,000,000 7,000,000 Total cash and cash equivalents 18(a) 41,857,599 29,990,480

Held as - Unrestricted cash and cash equivalents 7,898,267 760,381 - Restricted cash and cash equivalents 18(a) 33,959,332 29,230,099 41,857,599 29,990,480

SIGNIFICANT ACCOUNTING POLICIES

Cash and cash equivalents

Restricted financial assets Cash and cash equivalents include cash on hand, cash at bank, Restricted financial asset balances are not available for general use deposits available on demand with banks and other short term by the local government due to externally imposed restrictions. highly liquid investments with original maturities of three months Restrictions are specified in an agreement, contract or legislation. or less that are readily convertible to known amounts of cash This applies to reserves, unspent grants, subsidies and contributions and which are subject to an insignificant risk of changes in value. and unspent loans that have not been fully expended in the manner specified by the contributor, legislation or loan agreement and for Bank overdrafts are reported as short term borrowings in current which no liability has been recognised. liabilities in the statement of financial position.

Details of restrictions on financial assets can be found at Note 18. Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours notice with no loss of interest.

4. OTHER FINANCIAL ASSETS

(a) Current assets

2022 2021 $ $

Financial assets at amortised cost 198,228 169,328 198,228 169,328

Other financial assets at amortised cost Self supporting loans receivable 198,228 169,328 198,228 169,328

Held as - Unrestricted other financial assets at amortised cost 198,228 169,328 198,228 169,328

(b) Non-current assets

Financial assets at amortised cost 1,585,934 10,244,628 Financial assets at fair value through profit and loss 136,156 129,162 1,722,090 10,373,790

Financial assets at amortised cost Self supporting loans receivable 1,585,934 1,044,628

Term deposits 0 9,200,000 1,585,934 10,244,628

Financial assets at fair value through profit and loss Units in Local Government House Trust 136,156 129,162 136,156 129,162

Loans receivable from clubs/institutions have the same terms and conditions as the related borrowing disclosed in Note 14 as self supporting loans.

SIGNIFICANT ACCOUNTING POLICIES

Other financial assets at amortised cost

Financial assets at fair value through profit and loss

The Shire classifies financial assets at amortised cost if both of The Shire classifies the following financial assets at fair value the following criteria are met: through profit and loss: - the asset is held within a business model whose objective is to - debt investments which do not qualify for measurement at either collect the contractual cashflows, and amortised cost or fair value through other comprehensive income. - the contractual terms give rise to cash flows that are solely - equity investments which the Shire has not elected to recognise payments of principal and interest. fair value gains and losses through other comprehensive income.

Fair values of financial assets at amortised cost are not materially

Impairment and risk different to their carrying amounts, since the interest receivable Information regarding impairment and exposure to risk can be on those assets is either close to current market rates or the found at Note 21. assets are of a short term nature. Non-current financial assets at amortised cost fair values are based on discounted cash flows using a current market rates. They are classified as level 2 fair values in the fair value hierachy (see Note 22 (i)) due to the observable market rates.

Interest received is presented under cashflows from operating activities in the Statement of Cash Flows where it is earned from financial assets that are held for cash management purposes.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

5. TRADE AND OTHER RECEIVABLES

Current

Notes to and forming part of the Financial Report

Note 2022 2021 $ $

Rates receivable 153,939 238,540

Trade and other receivables 978,994 769,440 GST receivable 364,841 322,405 1,497,774 1,330,385 Non-current Pensioner's rates and ESL deferred 97,459 103,126 97,459 103,126

SIGNIFICANT ACCOUNTING POLICIES

Trade and other receivables

Classification and subsequent measurement Trade and other receivables include amounts due from Receivables which are generally due for settlement within ratepayers for unpaid rates and service charges and 30 days except rates receivables which are expected to be other amounts due from third parties for grants, collected within 12 months are classified as current assets. contributions, reimbursements, and goods sold and All other receivables such as, deferred pensioner rates services performed in the ordinary course of business. receivable after the end of the reporting period are classified as non-current assets.

Trade and other receivables are recognised initially at the amount of consideration that is unconditional, unless they

Trade and other receivables are held with the objective contain significant financing components, when they are to collect the contractual cashflows and therefore the Shire recognised at fair value. measures them subsequently at amortised cost using the effective interest rate method.

Impairment and risk exposure Information about the impairment of trade receivables

Due to the short term nature of current receivables, their and their exposure to credit risk and interest rate risk carrying amount is considered to be the same as their can be found in Note 21. fair value. Non-current receivables are indexed to value is considered immaterial.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

6. INVENTORIES

Notes to and forming part of the Financial Report

Note 2022 2021

Current $ $

Fuel and materials 96,074 55,373

Roadmaking materials 152,674 98,952

Various goods held for resale 104,151 73,775

Land held for resale - Flinders Estate Cost of acquisition 176,057 176,057 528,956 404,157

Non-current

Land held for resale - Flinders Estate 1,353,324 1,510,122

Land held for resale - Ocean Street 117,984 0

Land held for resale - Shark Lake Industrial Park 2,303,274 2,383,737 3,774,582 3,893,859

The following movements in inventories occurred during the year:

Balance at beginning of year 4,298,016 5,672,906

Inventories expensed during the year (2,206,390) (3,087,798)

Additions to inventory 2,211,912 1,712,908

Balance at end of year 4,303,538 4,298,016

SIGNIFICANT ACCOUNTING POLICIES

General Land held for resale (Continued)

Inventories are measured at the lower of cost and net

Borrowing costs and holding charges incurred after realisable value. development is completed are expensed.

Net realisable value is the estimated selling price in the

Gains and losses are recognised in profit or loss at ordinary course of business less the estimated costs of the time of signing an unconditional contract of sale if completion and the estimated costs necessary to make significant risks and rewards, and effective control over the sale. the land, are passed onto the buyer at this point.

Land held for resale

Land held for resale is classified as current except Land held for development and resale is valued at the where it is held as non-current based on the Council’s lower of cost and net realisable value. Cost includes the intentions to release for sale. cost of acquisition, development, borrowing costs and holding costs until completion of development.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

7. OTHER ASSETS

Notes to and forming part of the Financial Report

2022 2021 $ $

Other assets - current Interest Receivable 28,686 5,546 Accrued income 77,915 0 Contract assets 796,278 112,969 Infringements 12,292 7,816 915,171 126,331

30 June 30 June 1 July 2022 2021 2020 Actual Actual Actual

Contract assets $ $ $

Contract assets 796,278 112,969 787,570 Loss allowance 0 0 0 Total contract assets 796,278 112,969 787,570

SIGNIFICANT ACCOUNTING POLICIES

Other current assets

Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

Contract assets

Contract assets primarily relate to the Shire's right to . consideration for work completed but not billed at the end of the period.

Impairment of assets associated with contracts with customers are detailed at note 2 (b).

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

8. PROPERTY, PLANT AND EQUIPMENT

(a) Movements in Balances

Movement in the balances of each class of property, plant and equipment between the beginning and the end of the current financial year.

Notes to and forming part of the Financial Report

Note Land Buildings

Total land and buildings

Furniture and equipment Plant and equipment

Motor vehiclesnon specialised

Motor vehiclesspecialised

Road Making Plantmajor Roadmaking Plant - minor

Total property, plant and equipment $ $ $ $ $ $ $ $ $ $ Balance at 1 July 2020 27,676,500 58,197,838 85,874,338 646,127 5,107,395 1,895,537 459,741 8,707,419 368,382 103,058,939 Additions 12,649 1,935,578 1,948,227 53,705 200,739 573,014 0 1,501,186 196,624 4,473,495 Disposals 0 0 0 (2,371) (1,267) (177,187) 0 (578,529) (8,359) (767,713)

Depreciation 10(a) 0 (2,228,760) (2,228,760) (79,460) (414,867) (283,630) (55,979) (1,216,456) (39,516) (4,318,668) Balance at 30 June 2021 27,689,149 57,904,656 85,593,805 618,001 4,892,000 2,007,734 403,762 8,413,620 517,131 102,446,053

Comprises:

Gross balance amount at 30 June 2021

27,689,149 112,490,576 140,179,725 1,367,928 9,434,052 3,145,426 1,940,000 12,435,572 821,893 169,324,596 Accumulated depreciation at 30 June 2021 0 (54,585,920) (54,585,920) (749,927) (4,542,052) (1,137,692) (1,536,238) (4,021,952) (304,762) (66,878,543) Balance at 30 June 2021 27,689,149 57,904,656 85,593,805 618,001 4,892,000 2,007,734 403,762 8,413,620 517,131 102,446,053

Additions 4,923 1,065,961 1,070,884 93,725 2,231,467 580,753 0 1,699,830 331,294 6,007,953 Disposals (402,000) (63,440) (465,440) 0 (69,015) (30,918) (49,153) (479,337) 0 (1,093,863)

Depreciation 10(a) 0 (2,240,883) (2,240,883) (86,712) (495,748) (222,470) (54,500) (1,212,478) (64,181) (4,376,972)

Balance at 30 June 2022

Comprises:

Gross balance amount at 30 June 2022

27,292,072 56,666,294 83,958,366 625,014 6,558,704 2,335,099 300,109 8,421,635 784,244 102,983,171

27,292,072 113,484,037 140,776,109 1,461,652 11,575,519 3,611,179 1,370,000 13,010,401 1,153,188 172,958,048

Accumulated depreciation at 30 June 2022 0 (56,817,743) (56,817,743) (836,638) (5,016,815) (1,276,080) (1,069,891) (4,588,766) (368,944) (69,974,877)

Balance at 30 June 2022

27,292,072 56,666,294 83,958,366 625,014 6,558,704 2,335,099 300,109 8,421,635 784,244 102,983,171

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

8. PROPERTY, PLANT AND EQUIPMENT (Continued)

(b) Carrying Value Measurements

Asset Class Fair Value Hierarchy Valuation Technique

(i) Fair Value

Land and buildings

Land 2 Market approach using recent observable market data for similar properties/income approach using discounted cashflow methodology

Basis of Valuation Date of Last Valuation Inputs Used

Independent registered valuer June 2020 Price per hectare / market borrowing rate Buildings 3 Cost approach using depreciated replacement cost Independent registered valuer June 2020

Construction costs and current condition (level 2), residual values and remaining useful life assessments (level 3) inputs

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement.

During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant and equipment using either

level 2 or level 3 inputs.

(ii) Cost

Furniture and equipment

Cost Cost Purchase cost

Plant and equipment Cost Cost Purchase cost

Motor Vehicles Cost Cost Purchase cost

Road Making Plant Cost Cost Purchase cost

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

9. INFRASTRUCTURE

(a) Movements in Balances

Movement in the balances of each class of infrastructure between the beginning and the end of the current financial year. Note Infrastructureroads

Other infrastructurefootpaths

Other infrastructuredrainage

Other infrastructureparks and ovals

Other infrastructureother infrastructure

Other infrastructureEsperance airport Works in Progress Total Infrastructure $ $ $ $ $ $ $ $ $

Other infrastructureculverts and pipes

Balance at 1 July 2020 337,573,096 13,027,356 18,585,717 8,855,294 13,433,212 8,301,278 4,397,914 1,896,306 406,070,173

Additions 12,924,356 240,591 207,664 1,360,635 6,757,871 0 19,229 723,405 22,233,751 Depreciation 10(a) (10,461,266) (598,684) (207,554) (910,494) (818,356) (118,742) (210,340) 0 (13,325,436)

Transfers 0 0 0 0 1,807,697 0 0 (1,807,697) 0 Balance at 30 June 2021 340,036,186 12,669,263 18,585,827 9,305,435 21,180,424 8,182,536 4,206,803 812,014 414,978,488

Comprises:

Gross balance at 30 June 2021 456,004,264 19,839,443 23,678,098 17,445,205 46,665,525 11,874,176 7,826,101 812,014 584,144,826 Accumulated depreciation at 30 June 2021 (115,968,078) (7,170,180) (5,092,271) (8,139,770) (25,485,101) (3,691,640) (3,619,298) 0 (169,166,338) Balance at 30 June 2021 340,036,186 12,669,263 18,585,827 9,305,435 21,180,424 8,182,536 4,206,803 812,014 414,978,488

Additions 15,303,929 989,490 109,879 851,993 1,447,747 0 35,577 1,053,128 19,791,743 Depreciation 10(a) (11,775,282) (610,273) (210,356) (1,070,064) (942,630) (118,742) (202,136) (14,929,483) Balance at 30 June 2022 343,564,833 13,048,480 18,485,350 9,087,364 21,685,541 8,063,794 4,040,244 1,865,142 419,840,748

Comprises:

Gross balance at 30 June 2022 471,308,193 20,828,933 23,787,977 18,297,198 48,113,272 11,874,176 7,861,678 1,865,142 603,936,569 Accumulated depreciation at 30 June 2022 (127,743,360) (7,780,453) (5,302,627) (9,209,834) (26,427,731) (3,810,382) (3,821,434) 0 (184,095,821) Balance at 30 June 2022 343,564,833 13,048,480 18,485,350 9,087,364 21,685,541 8,063,794 4,040,244 1,865,142 419,840,748

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

9. INFRASTRUCTURE (Continued)

(b) Carrying Value Measurements

(i) Fair Value

Notes to and forming part of the Financial Report

Asset Class Fair Value Hierarchy Valuation Technique Basis of Valuation Date of Last Valuation Inputs Used

Infrastructure - roads 3 Cost approach using depreciated replacement cost Management valuation June 2018

Other infrastructure - footpaths 3 Cost approach using depreciated replacement cost Management valuation June 2018

Construction costs and current condition, residual values and remaining useful life assessments inputs

Construction costs and current condition, residual values and remaining useful life assessments inputs

Other infrastructure - drainage 3 Cost approach using depreciated replacement cost Management valuation June 2018

Other infrastructure - parks and ovals 3 Cost approach using depreciated replacement cost Management valuation June 2018

Construction costs and current condition, residual values and remaining useful life assessments inputs

Construction costs and current condition, residual values and remaining useful life assessments inputs

Other infrastructure - other infrastructu 3 Cost approach using depreciated replacement cost Management valuation June 2018

Other infrastructure - culverts and pipe 3 Cost approach using depreciated replacement cost Management valuation June 2018

Construction costs and current condition, residual values and remaining useful life assessments inputs

Construction costs and current condition, residual values and remaining useful life assessments inputs

Other infrastructure - Esperance airpor 3 Cost approach using depreciated replacement cost Management valuation June 2018

Works in Progress 3 Cost approach using depreciated replacement cost Management valuation June 2022

Construction costs and current condition, residual values and remaining useful life assessments inputs

Construction costs and current condition, residual values and remaining useful life assessments inputs

Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have the potential to result in a significantly higher or lower fair value measurement.

During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

10. FIXED ASSETS

Notes to and forming part of the Financial Report

(a) Depreciation 2022 2022 2021 Note Actual Budget Actual $ $ $

Buildings - non-specialised

8(a) 2,240,883 2,224,531 2,228,760

Furniture and equipment 8(a) 86,712 81,813 79,460

Plant and equipment 8(a) 495,748 421,272 414,867

Motor vehicles - non specialised 8(a) 222,470 255,407 283,630

Motor vehicles - specialised 8(a) 54,500 60,000 55,979

Road Making Plant - major 8(a) 1,212,478 1,242,785 1,216,456

Roadmaking Plant - minor 8(a) 64,181 42,000 39,516

Infrastructure - roads 9(a) 11,775,282 9,212,500 10,461,266

Other infrastructure - footpaths 9(a) 610,273 605,000 598,684

Other infrastructure - drainage 9(a) 210,356 210,000 207,554

Other infrastructure - parks and ovals 9(a) 1,070,064 920,000 910,494

Other infrastructure - other infrastructure 9(a) 942,630 1,911,871 818,356

Other infrastructure - culverts and pipes 9(a) 118,742 118,742 118,742

Other infrastructure - Esperance airport 9(a) 202,136 320,000 210,340

Right-of-use assets - plant and equipment 11(a) 26,622 0 27,446 19,333,077 17,625,921 17,671,550

Depreciation rates

Typical estimated useful lives for the different asset classes for the current and prior years are included in the table below:

Asset Class Useful life

Buildings 30 to 75 years

Furniture and equipment 5 to 20 years

Plant and equipment 3 to 15 years

Motor vehicles 5 to 20 years

Road making plant 5 to 10 years

Infrastructure - roads 15 to 60 years

Infrastructure - footpaths 30 to 60 years

Infrastructure - drainage 30 to 100 years

Infrastructure - parks and ovals 10 to 30 years

Infrastructure - other 10 to 70 years

Infrastructure - culverts and pipes 30 to 100 years

Infrastructure - Esperance Airport 10 to 50 years

Right of use - plant and equipment Based on the remaining lease

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

10. FIXED ASSETS (Continued)

(b) Disposals of assets

Notes to and forming part of the Financial Report

2022 2022 2022 2022 2021 2021

Actual Actual 2022 2022 Budget Budget 2022 2022 Actual Actual 2021 2021

Net Book Sale Actual Actual Net Book Sale Budget Budget Net Book Sale Actual Actual Value Proceeds Profit Loss Value Proceeds Profit Loss Value Proceeds Profit Loss $ $ $ $ $ $ $ $ $ $ $ $

Land - freehold land 663,391 864,296 285,380 (84,475) 325,000 500,000 175,000 0 1,416,979 2,334,316 917,337 0

Buildings - non-specialised 63,440 58,937 0 (4,503) 0 0 0 0 0 0 0 0 Furniture and equipment 0 0 0 0 0 0 0 0 2,371 364 24 (2,031) Plant and equipment 69,015 22,731 0 (46,284) 205,000 102,500 20,000 (122,500) 1,267 1,126 0 (141)

Motor vehicles - non specialised 30,918 60,000 29,082 0 426,342 341,000 69,861 (155,203) 177,187 188,182 18,266 (7,271)

Motor vehicles - specialised 49,153 69,545 20,392 0 0 0 0 0 0 0 0 0

Road Making Plant - major 479,337 460,788 48,568 (67,117) 823,305 540,000 27,635 (310,940) 578,529 415,179 19,106 (182,456)

Roadmaking Plant - minor 0 0 0 0 0 0 0 0 8,359 6,563 2,363 (4,159)

1,355,254 1,536,297 383,422 (202,379) 1,779,647 1,483,500 292,496 (588,643) 2,184,692 2,945,730 957,096 (196,058)

The following assets were disposed of during the year.

2022 2022 Actual Actual 2022 2022 Net Book Sale Actual Actual

Plant and Equipment Value Proceeds Profit Loss

Law, order, public safety

FT21 Fire Truck 31,153 35,000 3,847 0

FT27 Fire Truck 18,000 34,545 16,545 0

Education and welfare

LV611 Bus 30,918 60,000 29,082 0

Community amenities

GC1 Glass Crusher 69,015 22,731 0 (46,284)

L65 Front End Loader 95,410 72,541 0 (22,869)

Transport

FL3 Fork Lift 18,133 8,890 0 (9,243)

G45 Grader 123,898 115,298 0 (8,600)

T115 Tip Truck 127,214 118,384 0 (8,830)

T120 Prime Mover 89,803 138,371 48,568 0

TC40 Mower 24,879 7,304 0 (17,575) 628,423 613,064 98,042 (113,401)

Land

Other Property and Services

Flinders Estate 180,927 326,159 145,232 0

Shark Lake Industrial Park 80,464 135,192 54,728 0 Mills Place 160,000 219,532 59,532 0

Coolgardie/Esperance Highway 25,000 7,527 0 (17,473)

Pink Lake Road 136,000 161,888 25,888 0 Dunn Street 41,000 3,891 0 (37,109) Baker Street 40,000 10,107 0 (29,893) 663,391 864,296 285,380 (84,475)

Buildings Administration

Regional Records Facility 63,440 58,937 0 (4,503) 63,440 58,937 0 (4,503)

1,355,254 1,536,297 383,422 (202,379)

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

10. FIXED ASSETS (Continued)

SIGNIFICANT ACCOUNTING POLICIES

Fixed assets

Notes to and forming part of the Financial Report

Revaluation (continued)

For property, plant and equipment and infrastructure, increases in or infrastructure, is carried at cost or fair value as indicated less, the carrying amount arising on revaluation of assets are credited where applicable, any accumulated depreciation and impairment to a revaluation surplus in equity. Decreases that offset previous losses. increases of the same class of asset are recognised against revaluation surplus directly in equity. All other decreases are

Each class of fixed assets within either property, plant and equipment

Initial recognition and measurement for assets held at cost recognised in profit or loss. Subsequent increases are Plant and equipment including furniture and equipment is then recognised in profit or loss to the extent they reverse a recognised at cost on acquisition in accordance with Financial net revaluation decrease previously recognised in profit or loss Management Regulation 17A. Where acquired at no cost the asset for the same class of asset. is initially recognised at fair value. Assets held at cost are depreciated and assessed for indicators of impairment annually.

Depreciation

The depreciable amount of all property, plant and equipment Initial recognition and measurement between and infrastructure, are depreciated on a straight-line mandatory revaluation dates for assets held at fair value basis over the individual asset’s useful life from the time the Assets for which the fair value as at the date of acquisition is under asset is held ready for use. Leasehold improvements are $5,000 are not recognised as an asset in accordance with depreciated over the shorter of either the unexpired period Financial Management Regulation 17A (5). These assets are of the lease or the estimated useful life of the improvements. expensed immediately.

The assets residual values and useful lives are reviewed, and Where multiple individual low value assets are purchased together adjusted if appropriate, at the end of each reporting period. as part of a larger asset or collectively forming a larger asset exceeding the threshold, the individual assets are recognised as An asset's carrying amount is written down immediately to its one asset and capitalised. recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration plus costs incidental to Gains and losses on disposals are determined by the acquisition. For assets acquired at zero cost or otherwise comparing proceeds with the carrying amount. These significantly less than fair value, cost is determined as fair value at gains and losses are included in the statement of the date of acquisition. The cost of non-current assets constructed comprehensive income in the period in which they arise. by the Shire includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable Depreciation on revaluation and fixed overheads. When an item of property, plant and equipment and infrastructure is revalued, any accumulated depreciation Individual assets that are land, buildings, infrastructure and at the date of the revaluation is treated in one of the investment properties acquired between scheduled revaluation following ways: dates of the asset class in accordance with the

(i) The gross carrying amount is adjusted in a manner mandatory measurement framework, are recognised at cost that is consistent with the revaluation of the carrying and disclosed as being at fair value as management believes cost amount of the asset. For example, the gross carrying approximates fair value. They are subject to subsequent revaluation amount may be restated by reference to observable at the next revaluation date in accordance with the mandatory market data or it may be restated proportionately to the measurement framework. change in the carrying amount. The accumulated depreciation at the date of the revaluation is adjusted Revaluation to equal the difference between the gross carrying

The fair value of land, buildings, infrastructure and investment amount and the carrying amount of the asset after properties is determined at least every five years in accordance taking into account accumulated impairment losses; or with the regulatory framework. This includes buildings and (ii) Eliminated against the gross carrying amount of the infrastructure items which were pre-existing improvements asset and the net amount restated to the revalued (i.e. vested improvements) on vested land acquired by the Shire. amount of the asset.

At the end of each period the carrying amount for each asset class

Amortisation is reviewed and where appropriate the fair value is updated to All intangible assets with a finite useful life, are amortised reflect current market conditions. This process is considered to be on a straight-line basis over the individual asset’s useful life in accordance with Local Government (Financial Management) from the time the asset is held ready for use. Regulation 17A (2) which requires land, buildings, infrastructure, investment properties and vested improvements to be shown at The residual value of intangible assets is considered to be fair value. zero and the useful life and amortisation method are reviewed at the end of each financial year.

Amortisation is included within depreciation in the Statement of Comprehensive Income and in Note 10(a).

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

11. LEASES

(a) Right-of-Use Assets

Movement in the balance of each class of right-of-use asset between the beginning and the end of the current financial year. Note

Notes to and forming part of the Financial Report

Right-of-use assets - plant and equipment

Right-of-use assets - land and buildings

Right-of-use assets - plant and equipment

Right-of-use assets Total $ $ $ $

Balance at 1 July 2020 72,067 0 0 72,067

Depreciation (27,446) 0 0 (27,446) Balance at 30 June 2021 44,621 0 0 44,621

Additions 13,417 0 0 13,417

Depreciation 10(a) (26,622) 0 0 (26,622) Balance at 30 June 2022 31,416 0 0 31,416

The following amounts were recognised in the statement 2022 2021 of comprehensive income during the period in respect Actual Actual of leases where the entity is the lessee: $ $

Total cash outflow from leases (27,321) (28,210)

(b) Lease Liabilities

Current 23,105 22,310

Non-current 5,767 22,900 26(c) 28,872 45,210

Secured liabilities and assets pledged as security Lease liabilities are effectively secured, as the rights to the leased assets recognised in the financial statements revert to the lessor in the event of default.

SIGNIFICANT ACCOUNTING POLICIES

Leases

Right-of-use assets - valuation measurement

At inception of a contract, the Shire assesses if the contract Right-of-use assets are measured at cost. This means that contains or is a lease. A contract is, or contains, a lease if the all right-of-use assets (other than vested improvements) contract conveys the right to control the use of an identified under zero cost concessionary leases are measured at asset for a period of time in exchange for consideration. zero cost (i.e. not included in the Statement of Financial Position). The exception is vested improvements on At the commencement date, a right-of-use asset is recognised concessionary land leases such as roads, buildings or at cost and lease liability at the present value of the lease other infrastructure which are reported at fair value. payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate Refer to Note 10 under revaluation for details on the significant can be readily determined. If that rate cannot be readily accounting policies applying to vested improvements. determined, the Shire uses its incremental borrowing rate.

Right-of-use assets - depreciation All contracts that are classified as short-term leases (i.e. a lease Right-of-use assets are depreciated over the lease term or with a term of 12 months or less) and leases of low useful life of the underlying asset, whichever is the shorter. value assets are recognised as an operating expense on a Where a lease transfers ownership of the underlying asset, straight-line basis over the term of the lease. or the cost of the right-of-use asset reflects that the Shire anticipates to exercise a purchase option, the Details of individual lease liabilities required by regulations specific asset is amortised over the useful life of the are provided at Note 26(c). underlying asset.

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

11. LEASES

(Continued)

Notes to and forming part of the Financial Report

(c) Lessor - Property, Plant and Equipment Subject to Lease 2022 2021 Actual Actual

The table below represents a maturity analysis of the undiscounted $ $ lease payments to be received after the reporting date.

Less than 1 year 150,000 150,000 1 to 2 years 300,000 300,000 2 to 3 years 300,000 300,000 3 to 4 years 300,000 300,000 4 to 5 years 300,000 300,000 > 5 years 3,062,500 3,212,500 4,412,500 4,562,500

The Shire has leased the caravan park to RAC for a term of 35 years commencing in 2019/2020.

SIGNIFICANT ACCOUNTING POLICIES

The Shire as Lessor

Upon entering into each contract as a lessor, the Shire assesses Initial direct costs incurred in entering into an operating if the lease is a finance or operating lease. lease (eg legal cost, cost to setup) are included in the carrying amount of the leased asset and recognised as an

The contract is classified as a finance lease when the terms expense on a straight-line basis over the lease term. of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases not within this definition When a contract is determined to include lease and are classified as operating leases. Rental income received from non-lease components, the Shire applies AASB 15 to operating leases is recognised on a straight-line basis over the allocate the consideration under the contract to each term of the specific lease. component.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

12. TRADE AND OTHER PAYABLES 2022 2021

$ $

Current Sundry creditors

1,991,764 3,009,354 Prepaid rates 178,295 94,259

Accrued payroll liabilities 590,934 390,712 Bonds and deposits held 333,343 310,135 Accrued interest on long term borrowings 10,750 8,192 3,105,086 3,812,652

SIGNIFICANT ACCOUNTING POLICIES

Financial liabilities Trade and other payables Financial liabilities are initially recognised at fair value Trade and other payables represent liabilities for goods when the Shire becomes a party to the contractual and services provided to the Shire prior to the end of the provisions of the instrument. financial year that are unpaid and arise when the Shire becomes obliged to make future payments in respect Non-derivative financial liabilities (excluding financial of the purchase of these goods and services. guarantees) are subsequently measured at amortised The amounts are unsecured, are recognised as a cost. current liability and are usually paid within 30 days of recognition. The carrying amounts of trade and other Financial liabilities are derecognised where the related payables are considered to be the same as their fair obligations are discharged, cancelled or expired. The values, due to their short-term nature. difference between the carrying amount of the financial liability extinguished or transferred to another party and Prepaid rates the fair value of the consideration paid, including the Prepaid rates are, until the taxable event has occurred transfer of non-cash assets or liabilities assumed, is (start of the next financial year), refundable at the request recognised in profit or loss. of the ratepayer. Rates received in advance are initially recognised as a financial liability. When the taxable event occurs, the financial liability is extinguished and the Shire recognises revenue for the prepaid rates that have not been refunded.

13.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

OTHER

Current

LIABILITIES

Contract liabilities

Reconciliation of changes in contract liabilities

Opening balance

2022 2021 $ $

2,211,302 2,588,954 2,211,302 2,588,954

2,588,954 760,282

Additions 2,211,302 2,588,954

Revenue from contracts with customers included as a contract liability at the start of the period (2,588,954) (760,282) 2,211,302 2,588,954

The Shire expects to satisfy the performance obligations from contracts with customers unsatisfied at the end of the reporting period to be satisfied within the next 12 months.

SIGNIFICANT ACCOUNTING POLICIES

Contract liabilities

Capital grant/contribution liabilities

Contract liabilities represent the Shire's obligation to Capital grant/contribution liabilities represent the Shire's transfer goods or services to a customer for which the obligations to construct recognisable non-financial Shire has received consideration from the customer. assets to identified specifications to be controlled the Shire which are yet to be satisfied. Capital grant/contribution

Contract liabilities represent obligations which are not liabilities are recognised as revenue when the yet satisfied. Contract liabilities are recognised as revenue obligations in the contract are satisfied. when the performance obligations in the contract are satisfied.

Non-current capital grant/contribution liabilities fair values are based on discounted cash flows of expected cashflows to satisfy the obligations using a current borrowing rate. They are classified as level 3 fair values in the fair value hierachy (see Note 22(i)) due to the unobservable inputs, including own credit risk.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

14. BORROWINGS

Note Current Non-current Total Current Non-current Total Secured $ $ $ $ $ $ Debentures 250,645 2,261,724 2,512,369 219,453 1,772,834 1,992,287 Total secured borrowings 26(a) 250,645 2,261,724 2,512,369 219,453 1,772,834 1,992,287

Secured liabilities and assets pledged as security Debentures, bank overdrafts and bank loans are secured by a floating charge over the assets of the Shire of Esperance.

SIGNIFICANT ACCOUNTING POLICIES

Borrowing costs Risk

Borrowing costs are recognised as an expense when incurred except

Information regarding exposure to risk can where they are directly attributable to the acquisition, construction or be found at Note 21. production of a qualifying asset. Where this is the case, they are

Details of individual borrowings required by regulations capitalised as part of the cost of the particular asset until such time are provided at Note 26(a). as the asset is substantially ready for its intended use or sale.

Fair values of borrowings are not materiallly different to their carrying amounts, since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short term nature. Borrowings fair values are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierachy (see Note 22(i)) due to the unobservable inputs, including own credit risk.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

15. EMPLOYEE RELATED PROVISIONS

Employee Related Provisions

2022 2021

Current provisions $ $

Employee benefit provisions

Annual Leave 1,701,855 1,538,489 Long Service Leave 1,424,482 1,375,927 3,126,337 2,914,416 Non-current provisions Long Service Leave 222,392 293,399 222,392 293,399 3,348,729 3,207,815

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave and associated on costs for services rendered up to the reporting date and recorded as an expense during the period the services are delivered.

Annual leave liabilities are classified as current, as there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

Note 2022 2021

Amounts are expected to be settled on the following basis: $ $ Less than 12 months after the reporting date 915,542 882,651 More than 12 months from reporting date 2,433,187 2,325,164 3,348,729 3,207,815

SIGNIFICANT ACCOUNTING POLICIES

Employee benefits

The Shire’s obligations for employees’ annual leave, long

Other long-term employee benefits service leave and other employee leave entitlements are Long-term employee benefits provisions are measured at the recognised as employee related provisions in the Statement present value of the expected future payments to be made to of Financial Position. employees. Expected future payments incorporate anticipated future wage and salary levels, durations of

Short-term employee benefits service and employee departures and are discounted at Provision is made for the Shire’s obligations for short-term rates determined by reference to market yields at the end employee benefits. Short-term employee benefits are of the reporting period on government bonds that have benefits (other than termination benefits) that are expected maturity dates that approximate the terms of the obligations. to be settled wholly before 12 months after the end of the Any remeasurements for changes in assumptions of annual reporting period in which the employees render the obligations for other long-term employee benefits are related service, including wages, salaries and sick leave. recognised in profit or loss in the periods in which the Short-term employee benefits are measured at the changes occur. (undiscounted) amounts expected to be paid when the obligation is settled.

The Shire’s obligations for long-term employee benefits are presented as non-current provisions in its statement of The Shire’s obligations for short-term employee benefits financial position, except where the Shire does not have an such as wages, salaries and sick leave are recognised as unconditional right to defer settlement for at least 12 months a part of current trade and other payables in the statement after the end of the reporting period, in which case the of financial position. obligations are presented as current provisions.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

16. OTHER PROVISIONS

Note

Notes to and forming part of the Financial Report

Provision for remediation costs Total $ $

Opening balance at 1 July 2021 Non-current provisions 5,307,889 5,307,889 5,307,889 5,307,889

Additional provision 385,484 385,484 Balance at 30 June 2022 5,693,373 5,693,373

Comprises Non-current 5,693,373 5,693,373 5,693,373 5,693,373

Other provisions

Amounts which are reliably expected to be paid out within 12 months of the reporting date are classified as current. Exact timing of payment of non-current obligations is unable to be reliably estimated as it is dependent on factors beyond the control of the local government.

Provision for remediation costs

Under the licence for the operation of the Wylie Bay Waste Facility landfill site, the Shire has a legal obligation to restore the site.

The estimated future obligations include the costs of restoring the affected areas and continued monitoring of the site.

The provision for future remediation costs is the best estimate of the present value of the expenditure required to settle the remediation obligation at the reporting date. Future remediation costs are reviewed annually and any changes in the estimate are reflected in the present value of the remediation provision at each reporting date.

Provisions

Provisions are recognised when the Shire has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

17. REVALUATION SURPLUS

2022 2022 2022 2021 2021 2021

Opening Revaluation Closing Opening Revaluation Closing Balance (Decrement) Balance Balance Increment Balance $ $ $ $ $ $

Revaluation surplus - Land & Buildings 37,565,324 0 37,565,324 37,565,324 0 37,565,324

Revaluation surplus - Furniture and equipment 120,357 0 120,357 120,357 0 120,357

Revaluation surplus - Plant and equipment 1,281,689 0 1,281,689 1,281,689 0 1,281,689

Revaluation surplus - Motor vehicles - non specialised 921,059 0 921,059 921,059 0 921,059

Revaluation surplus - Motor vehicles - specialised (134,611) 0 (134,611) (134,611) 0 (134,611)

Revaluation surplus - Road Making Plant - major 631,881 0 631,881 631,881 0 631,881

Revaluation surplus - Roadmaking Plant - minor 37,105 0 37,105 37,105 0 37,105

Revaluation surplus - Infrastructure - roads 134,584,177 0 134,584,177 134,584,177 0 134,584,177

Revaluation surplus - Other infrastructure - footpaths 6,199,980 0 6,199,980 6,199,980 0 6,199,980

Revaluation surplus - Other infrastructure - drainage 12,506,440 0 12,506,440 12,506,440 0 12,506,440

Revaluation surplus - Other infrastructure - parks and ovals 3,418,190 0 3,418,190 3,418,190 0 3,418,190

Revaluation surplus - Other infrastructure - other infrastructure 1,365,420 0 1,365,420 1,365,420 0 1,365,420

Revaluation surplus - Other infrastructure - culverts and pipes 8,613,107 0 8,613,107 8,613,107 0 8,613,107

Revaluation surplus - Other infrastructure - Esperance airport 1,253,965 0 1,253,965 1,253,965 0 1,253,965 208,364,083 0 208,364,083 208,364,083 0 208,364,083

Movements on revaluation of property, plant and equipment (including infrastructure) are not able to be reliably attributed to a program as the assets were revalued by class as provided for by AASB 116 Aus 40.1.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

18. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

Notes to and forming part of the Financial Report

For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the related items in the Statement of Financial Position as follows:

2022 2022 2021 Note Actual Budget Actual $ $ $

Cash and cash equivalents 3 41,857,599 26,980,945 29,990,480

Restrictions

The following classes of financial assets have restrictions imposed by regulations or other externally imposed requirements which limit or direct the purpose for which the resources may be used:

- Cash and cash equivalents 3 33,959,332 23,112,251 29,230,099 33,959,332 23,112,251 29,230,099

The restricted financial assets are a result of the following specific purposes to which the assets may be used:

Restricted reserve accounts 27 33,959,332 23,112,251 29,230,099

Total restricted financial assets 33,959,332 23,112,251 29,230,099

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

Net result 9,641,652 6,924,273 6,187,897

Non-cash items: Depreciation/amortisation 19,333,077 17,625,921 17,671,550 (Profit)/loss on sale of asset (181,043) 296,147 (761,038)

Changes in assets and liabilities: (Increase)/decrease in trade and other receivables (294,413) (141,000) 569,674 (Increase)/decrease in other assets (27,616) (57,688) (Increase)/decrease in inventories (5,522) (12,500) 32,259 (Increase)/decrease in contract assets (761,224) (8,000) 674,601

Increase/(decrease) in trade and other payables (707,566) 111,500 (895,662)

Increase/(decrease) in employee related provisions 140,914 70,000 240,433

Increase/(decrease) in other provisions 385,484 0 0

Increase/(decrease) in other liabilities (377,652) (500,000) 1,828,672

Non-operating grants, subsidies and contributions (10,643,976) (16,557,813) (10,272,118)

Net cash provided by/(used in) operating activities 16,502,115 7,808,528 15,218,580

(c) Undrawn Borrowing Facilities

Credit Standby Arrangements

Bank overdraft limit 200,000 200,000

Bank overdraft at balance date 0 0

Credit card limit 80,000 80,000

Credit card balance at balance date (6,039) (2,083)

Total amount of credit unused 273,961 277,917

Loan facilities

Loan facilities - current 250,645 219,453

Loan facilities - non-current 2,261,724 1,772,834

Total facilities in use at balance date 2,512,369 1,992,287

Unused loan facilities at balance date Nil Nil

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

19. RELATED PARTY TRANSACTIONS

(a) Elected Member Remuneration

Councillor Ian Mickel

2022 2022 2021

Note Actual Budget Actual $ $ $

President's annual allowance 34,500 34,500 33,638 Meeting attendance fees 22,000 22,000 21,450 Annual allowance for ICT expenses 1,500 2,000 2,000 58,000 58,500 57,088

Councillor Ron Chambers

Deputy President's annual allowance 6,094 0 0 Meeting attendance fees 18,000 18,000 18,000 Annual allowance for ICT expenses 1,500 2,000 2,000 25,594 20,000 20,000

Councillor Steven McMullen

Meeting attendance fees 18,000 18,000 18,000 Annual allowance for ICT expenses 1,500 2,000 2,000 19,500 20,000 20,000

Councillor Jennifer Obourne

Meeting attendance fees 18,000 18,000 18,000 Annual allowance for ICT expenses 1,500 2,000 2,000 19,500 20,000 20,000

Councillor Jo-Anne O'Donnell

Meeting attendance fees 18,000 18,000 18,000 Annual allowance for ICT expenses 1,500 2,000 2,000 19,500 20,000 20,000

Councillor Wes Graham

Meeting attendance fees 18,000 18,000 18,000 Annual allowance for ICT expenses 1,500 2,000 2,000 19,500 20,000 20,000

Councillor Rob Horan

Meeting attendance fees 12,717 0 0 Annual allowance for ICT expenses 1,060 0 0 13,777 0 0

Councillor Shayne Flanagan

Meeting attendance fees 12,717 0 0 Annual allowance for ICT expenses 1,060 0 0 13,777 0 0

Councillor Leonie De Haas

Meeting attendance fees 12,717 0 0 Annual allowance for ICT expenses 1,060 0 0 13,777 0 0

Councillor Dale Piercey

Meeting attendance fees 5,283 18,000 18,000 Annual allowance for ICT expenses 440 2,000 2,000 5,723 20,000 20,000

Councillor Basil Parker

Deputy President's annual allowance 2,531 8,625 8,625 Meeting attendance fees 5,283 18,000 18,000 Annual allowance for ICT expenses 440 2,000 2,000 8,254 28,625 28,625

Councillor Shelley Payne

Meeting attendance fees 0 18,000 13,846 Annual allowance for ICT expenses 0 2,000 1,538 0 20,000 15,384 216,902 227,125 221,097

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

(a) Elected Member Remuneration (Continued)

Fees, expenses and allowances to be paid or

2022 2022 2021 reimbursed to elected council members. Actual Budget Actual $ $ $

President's annual allowance 34,500 34,500 33,638 Deputy President's annual allowance 8,625 8,625 8,625 Meeting attendance fees 160,717 166,000 161,296 Annual allowance for ICT expenses 13,060 18,000 17,538 19(b) 216,902 227,125 221,097

(b) Key Management Personnel (KMP) Compensation

2022 2021

The total of compensation paid to KMP of the Actual Actual Shire during the year are as follows: $ $

Short-term employee benefits 720,935 550,593 Post-employment benefits 85,299 55,921 Employee - other long-term benefits (29,645) (23,035) Council member costs 19(a) 216,902 221,097 993,491 804,576

Short-term employee benefits

These amounts include all salary and fringe benefits awarded to KMP except for details in respect to fees and benefits paid to council members which may be separately found in the table above.

Post-employment benefits

These amounts are the current-year's cost of the Shire's superannuation contributions made during the year.

Other long-term benefits

These amounts represent annual leave and long service leave entitlements accruing during the year.

Council member costs These amounts represent payments of member fees, expenses, allowances and reimbursements during the year.

(c) Transactions with related parties

Transactions between related parties and the Shire are on normal commercial terms and conditions, no more favourable than those available to other parties, unless otherwise stated. No outstanding balances or provisions for doubtful debts or guarantees exist in relation to related parties at year end.

In addition to KMP compensation above the following transactions 2022 2021 occurred with related parties: Actual Actual $ $

Purchase of goods and services 128,686 136,479

(d) Related Parties

The Shire's main related parties are as follows:

i. Key management personnel

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any council member, are considered key management personnel.

ii. Other Related Parties

An associate person of KMP was employed by the Shire under normal employment terms and conditions. Any entity that is controlled by or over which KMP, or close family members of KMP, have authority and responsibility for planning, directing and controlling the activity of the entity, directly or indirectly, are considered related parties in relation to the Shire.

iii. Entities subject to significant influence by the Shire

An entity that has the power to participate in the financial and operating policy decisions of an entity, but does not have control over those policies, is an entity which holds significant influence. Significant influence may be gained by share ownership, statute or agreement.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

20. JOINT ARRANGEMENTS

Share of joint operations

Provision of a regional Records Service.

This joint venture ceased to exist for the Shire of Esperance during 2021/22. The only asset was a building.

Council's one-tenth share of this asset included in Land and Buildings is as follows:

Notes to and forming part of the Financial Report

2022 2021

Statement of Financial Position Actual Actual $ $

Non-current assets

Land and Buildings 72,500 72,500 Less: accumulated depreciation (9,060) (7,249) Sale proceeds (58,937) 0 Loss on disposal (4,503) 0 Total assets 0 65,251

SIGNIFICANT ACCOUNTING POLICIES

Joint operations

A joint operation is a joint arrangement where the Shire has joint control with another party to the joint arrangement. All parties to joint arrangementhave rights to the assets, and obligations for the liabilities relating to the arrangement.

Assets, liabilities, revenues and expenses relating to the Shire's interest in the joint operation are accounted for in accordance with the relevant Australian Accounting Standard.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

21. FINANCIAL RISK MANAGEMENT

Notes to and forming part of the Financial Report

This note explains the Shire’s exposure to financial risks and how these risks could affect the Shire’s future financial performance.

Risk Exposure arising from Measurement Management Market risk - interest rates Sensitivity analysis

Long term borrowings at variable rates

Utilise fixed interest rate borrowings

Credit risk Aging analysis Credit analysis

Cash and cash equivalents, trade receivables, financial assets and debt investments

Diversification of bank deposits, credit limits. Investment policy

Liquidity risk Rolling cash flow forecasts

Borrowings and other liabilities

Availability of committed credit lines and borrowing facilities

The Shire does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.

Financial risk management is carried out by the finance area under policies approved by the Council. The finance area identifies, evaluates and manages financial risks in close co-operation with the operating divisions. Council have approved the overall risk management policy and provide policies on specific areas such as investment policy.

(a) Interest rate risk

Cash and cash equivalents

The Shire's main interest rate risk arises from cash and cash equivalents with variable interest rates, which exposes the Shire to cash flow interest rate risk. Short term overdraft facilities also have variable interest rates however these are repaid within 12 months, reducing the risk level to minimal.

Excess cash and cash equivalents are invested in fixed interest rate term deposits which do not expose the Shire to cash flow interest rate risk. Cash and cash equivalents required for working capital are held in variable interest rate accounts and non-interest bearing accounts. Carrying amounts of cash and cash equivalents at the 30 June and the weighted average interest rate across all cash and cash equivalents, term deposits, and Treasury bonds held disclosed as financial assets at amortised cost are reflected in the table below.

Weighted Average Carrying Fixed Variable Non Interest Interest Rate Amounts Interest Rate Interest Rate Bearing % $ $ $ $ 2022

Cash and cash equivalents 1.10% 41,857,599 29,000,000 12,857,599 0

2021 Cash and cash equivalents 0.20% 29,990,480 7,000,000 22,990,480 0 Financial assets at amortised cost - term deposits 0.41% 9,199,999 9,199,999 0 0

Sensitivity

Profit or loss is sensitive to higher/lower interest income from cash and cash equivalents as a result of changes in interest rates. 2022 2021 $ $

Impact of a 1% movement in interest rates on profit and loss and equity* 128,576 229,905 * Holding all other variables constant

Borrowings

Borrowings are subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs. The Shire manages this risk by borrowing long term and fixing the interest rate to the situation considered the most advantageous at the time of negotiation. The Shire does not consider there to be any interest rate risk in relation to borrowings. Details of interest rates applicable to each borrowing may be found at Note 26(a).

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

21. FINANCIAL RISK MANAGEMENT (Continued)

(b) Credit risk

Trade and Other Receivables

The Shire’s major receivables comprise rates annual charges and user fees and charges. The major risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The Shire manages this risk by monitoring outstanding debt and employing debt recovery policies. It also encourages ratepayers to pay rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of the Shire to recover these debts as a secured charge over the land, that is, the land can be sold to recover the debt. The Shire is able to charge interest on overdue rates and annual charges at higher than market rates, which further encourages payment.

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance.

The Shire applies the AASB 9 simplified approach to measuring expected credit losses using a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, rates receivable are separated from other trade receivables due to the difference in payment terms and security for rates receivable.

The expected loss rates are based on the payment profiles of rates and fees and charges over a period of 36 months before 1 July 2021 or 1 July 2022 respectively and the corresponding historical losses experienced within this period. Historical credit loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors such as the ability of ratepayers and residents to settle the receivables. Housing prices and unemployment rates have been identified as the most relevant factor in repayment rates, and accordingly adjustments are made to the expected credit loss rate based on these factors.

The loss allowance as at 30 June 2022 and 30 June 2021 for rates receivable was determined as follows:

Less than 1 More than 1 More than 2 More than 3 year past due year past due years past due years past due Total Note 30 June 2022

Rates receivable

Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 41,778 20,087 12,309 79,765 153,939 Loss allowance 0 0 0 0 0 5

30 June 2021

Rates receivable

Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 52,196 14,449 8,867 163,028 238,540 Loss allowance 0 0 0 0 0 5

The loss allowance as at 30 June 2022 and 30 June 2021 was determined as follows for trade receivables.

Less than 30 More than 30 More than 60 More than 90 days past due days past due days past due days past due Total 30 June 2022

Trade and other receivables

Expected credit loss 0.00% 0.00% 0.00% 0.00% Gross carrying amount 942,451 16,780 1,012 18,751 978,994 Loss allowance 0 0 0 0 0 5

30 June 2021

Trade and other receivables

Expected credit loss 0.00% 0.00% 0.00% 0.00%

Gross carrying amount 694,753 67,725 2,856 4,106 769,440 Loss allowance 0 0 0 0 0 5

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

21. FINANCIAL RISK MANAGEMENT (Continued)

(b) Credit risk

Notes to and forming part of the Financial Report

The loss allowances for trade receivables and contract assets as at 30 June reconcile to the opening loss allowances as follows:

Rates receivable Trade and other receivables Contract Assets

2022 2021 2022 2021 2022 2021 Actual Actual Actual Actual Actual Actual $ $ $ $ $ $

Opening loss allowance as at 1 July 0 0 0 0 0 0 Receivables written off during the year as uncollectible 12,079 4,060 866 0 0 0 Unused amount reversed (12,079) (4,060) (866) 0 0 0 Closing loss allowance at 30 June 0 0 0 0 0 0

Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Shire, and a failure to make contractual payments for a period of greater than 120 days past due.

Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

Contract Assets

The Shire’s contract assets represent work completed, which have not been invoiced at year end. This is due to the Shire not having met all the performance obligations in the contract which give an unconditional right to receive consideration. The Shire applies the simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all contract assets. To measure the expected credit losses, contract assets have been grouped based on shared credit risk characteristics and the days past due. Contract assets have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Shire has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

21. FINANCIAL RISK MANAGEMENT (Continued)

(c) Liquidity risk

Payables and borrowings Payables and borrowings are both subject to liquidity risk – that is the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due. The Shire manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer. Payment terms can be extended and overdraft facilities drawn upon if required and disclosed in Note 18(c).

The contractual undiscounted cash flows of the Shire’s payables and borrowings are set out in the liquidity table below. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

Due Due Due Total within between after contractual Carrying 1 year 1 & 5 years 5 years cash flows values 2022 $ $ $ $ $

Trade and other payables 3,105,086 0 0 3,105,086 3,105,086 Borrowings 333,291 1,278,148 1,457,764 3,069,203 2,512,369 Lease liabilities 23,400 8,809 0 32,209 28,872 Contract liabilities 2,211,302 0 0 2,211,302 2,211,302 5,673,079 1,286,957 1,457,764 8,417,800 7,857,629

2021

Trade and other payables 3,812,652 0 0 3,812,652 3,812,652 Borrowings 219,453 1,048,462 724,372 1,992,287 1,992,287 Lease liabilities 22,310 17,133 5,767 45,210 45,210 Contract liabilities 2,588,954 0 0 2,588,954 2,588,954 6,643,369 1,065,595 730,139 8,439,103 8,439,103

Shire of Esperance

Notes to and forming part of the Financial Report Annual Financial Report

For the year ended 30th June 2022

22. OTHER SIGNIFICANT ACCOUNTING POLICIES

a) Goods and services tax (GST)

i) Fair value hierarchy

Revenues, expenses and assets are recognised net of the amount of GST, AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, except where the amount of GST incurred is not recoverable from the which categorises fair value measurement into one of three possible levels based on the lowest Australian Taxation Office (ATO). level that an input that is significant to the measurement can be categorised into as follows:

Receivables and payables are stated inclusive of GST receivable or payable. Level 1 The net amount of GST recoverable from, or payable to, the ATO is included

Measurements based on quoted prices (unadjusted) in active markets for identical assets or with receivables or payables in the statement of financial position. liabilities that the entity can access at the measurement date.

Cash flows are presented on a gross basis. The GST components of cash Level 2 flows arising from investing or financing activities which are recoverable from,

Measurements based on inputs other than quoted prices included in Level 1 that are or payable to, the ATO are presented as operating cash flows. observable for the asset or liability, either directly or indirectly.

b) Current and non-current classification Level 3

The asset or liability is classified as current if it is expected to be settled

Measurements based on unobservable inputs for the asset or liability. within the next 12 months, being the Shire’s operational cycle. In the case of liabilities where the Shire does not have the unconditional right to defer

The fair values of assets and liabilities that are not traded in an active market are determined settlement beyond 12 months, such as vested long service leave, the liability using one or more valuation techniques. These valuation techniques maximise, to the extent is classified as current even if not expected to be settled within the next 12 possible, the use of observable market data. If all significant inputs required to measure fair months. Inventories held for trading are classified as current or non-current value are observable, the asset or liability is included in Level 2. If one or more significant based on the Shire's intentions to release for sale. inputs are not based on observable market data, the asset or liability is included in Level 3.

c) Rounding off figures

Valuation techniques

All figures shown in this annual financial report, other than a rate in the dollar, The Shire selects a valuation technique that is appropriate in the circumstances and for which are rounded to the nearest dollar. Amounts are presented in Australian Dollars. sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The d) Comparative figures valuation techniques selected by the Shire are consistent with one or more of the following Where required, comparative figures have been adjusted to conform with valuation approaches: changes in presentation for the current financial year.

Market approach

When the Shire applies an accounting policy retrospectively, makes a Valuation techniques that use prices and other relevant information generated by market retrospective restatement or reclassifies items in its financial statements that transactions for identical or similar assets or liabilities. has a material effect on the statement of financial position, an additional (third) Statement of Financial Position as at the beginning of the preceding Income approach period in addition to the minimum comparative financial statements is Valuation techniques that convert estimated future cash flows or income and expenses into a presented. single discounted present value.

e) Budget comparative figures Cost approach

Unless otherwise stated, the budget comparative figures shown in this annual Valuation techniques that reflect the current replacement cost of the service capacity of an asset financial report relate to the original budget estimate for the relevant item of disclosure. Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting f) Superannuation a valuation technique, the Shire gives priority to those techniques that maximise the use of The Shire contributes to a number of Superannuation Funds on behalf of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using employees. All funds to which the Shire contributes are defined contribution market data (such as publicly available information on actual transactions) and reflect the plans. assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are g) Fair value of assets and liabilities developed using the best information available about such assumptions are considered Fair value is the price that the Shire would receive to sell the asset or would unobservable. have to pay to transfer a liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the j) Impairment of assets measurement date. In accordance with Australian Accounting Standards the Shire's cash generating non-specialised assets, other than inventories, are assessed at each reporting date to determine whether there As fair value is a market-based measure, the closest equivalent observable is any indication they may be impaired. market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the Where such an indication exists, an impairment test is carried out on the asset by comparing specific asset or liability. The fair values of assets that are not traded in an the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell active market are determined using one or more valuation techniques. These and value in use, to the asset's carrying amount. valuation techniques maximise, to the extent possible, the use of observable market data. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance

To the extent possible, market information is extracted from either the with another Standard (e.g. AASB 116) whereby any impairment loss of a revalued asset is principal market for the asset or liability (i.e. the market with the greatest treated as a revaluation decrease in accordance with that other Standard. volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the For non-cash generating specialised assets that are measured under the revaluation model, end of the reporting period (i.e. the market that maximises the receipts from such as roads, drains, public buildings and the like, no annual assessment of impairment is the sale of the asset after taking into account transaction costs and required. Rather AASB 116.31 applies and revaluations need only be made with sufficient transport costs). regularity to ensure the carrying value does not differ materially from that which would be determined using fair value at the end of the reporting period.

For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or k) Initial application of accounting standards to sell it to another market participant that would use the asset in its highest

During the current year, no new or revised Australian Accounting Standards and Interpretations and best use. were compiled, became mandatory and were applicable to its operations.

h) Interest earnings

New accounting standards for application in future years

The following new accounting standards will have application to local government in future years gross carrying amount of a financial asset measured at amortised cost

Interest income is calculated by applying the effective interest rate to the

- AASB 2020-1 Amendments to Australian Accounting Standards - Classification of except for financial assets that subsequently become credit-impaired. For Liabilities as Current or Non-current credit-impaired financial assets the effective interest rate is applied to the - AASB 2020-3 Amendments to Australian Accounting Standards - Annual Improvements net carrying amount of the financial asset (after deduction of the loss 2018-2020 and Other Amendments allowance).

- AASB 2021-2 Amendments to Australian Accounting Standards - Disclosure of Accounting Policies or Definition of Accounting Estimates

- AASB 2021-7 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections

It is not expected these standards will have an impact on the financial report.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

23. FUNCTION AND ACTIVITY

(a) Service objectives and descriptions

Notes to and forming part of the Financial Report

Shire operations as disclosed in this financial report encompass the following service orientated functions and activities.

Objective Description Governance

To provide a decision making process for the Includes the activities of members of Council (Councillors) and the efficient allocation of scarce resources. administration support services available to the Council for the provision of governance of the district. Other costs relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific services.

General purpose funding

To collect revenue to allow for the provision of Rates, general purpose government grants and interest revenue. services.

Law, order, public safety

To provide services to help ensure a safer and Supervision and enforcement of various local laws relating to fire prevention, environmentally conscious community. animal control and protection of the environment and other aspects of public safety including beaches and emergency services.

Health

To provide an operational framework for good Inspection of food outlets and their control as well as provision of meat community health. inspection services, noise control and waste disposal compliance.

Education and welfare

To provide services to disadvantaged persons, Maintenance of child minding centre, playgroup centre, senior citizens the elderly, children and youth. centre and aged care centre. Provision and maintenance of home and community care programs and youth support services.

Community amenities

To provide services required by the community. Rubbish collection services, operation of rubbish disposal sites, litter control, construction and maintenance of urban storm water drains, protection of the environment and administration of town planning schemes, cemetery and public conveniences.

Recreation and culture

To establish and effectively manage Maintenance of public halls, civic centre, aquatic centre, beaches, infrastructure and resources which will help recreation centre and various sporting facilities. Provision and maintenance the social well being of the community. of parks, gardens and playgrounds. Operations of library, museum and other cultural facilities.

Transport

To provide safe, effective and efficient

Construction and maintenance of roads, street, footpaths, depots, transport services to the community. cycleways, parking facilities and traffic control. Cleaning of streets and maintenance of street trees, street lighting etc. Provision and operation of airport. Provision of licensing facilities.

Economic services

To help promote the Shire and its economic

Tourism and area promotion including the maintenance and operation of a well being. caravan park. Provision of rural services including weed control, vermin control and standpipes. Building control.

Other property and services

To monitor and control Council's overheads and Private works, plant repair and operation costs and engineering operation operating accounts. costs.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

23. FUNCTION AND ACTIVITY

(Continued)

Notes to and forming part of the Financial Report

(b) Income and expenses 2022 2022 2021 Actual Budget Actual $ $ $

Income excluding grants, subsidies and contributions

Governance 320,721 215,400 276,213 General purpose funding 22,330,411 22,330,344 21,766,223 Law, order, public safety 135,480 84,650 97,932 Health 53,907 57,500 34,222 Education and welfare 867,741 1,057,771 1,046,012 Community amenities 5,381,237 4,774,000 4,935,254 Recreation and culture 2,027,943 1,909,396 1,785,879 Transport 1,636,609 1,473,851 1,218,571 Economic services 561,390 483,450 396,763 Other property and services 522,009 455,800 1,128,622 33,837,448 32,842,162 32,685,691

Grants, subsidies and contributions

Governance 72,440 235,136 42,125 General purpose funding 8,899,414 2,633,396 5,648,295 Law, order, public safety 2,363,065 1,414,565 662,171 Health 44,829 2,000 1,940 Education and welfare 4,010,311 4,522,367 3,244,417 Community amenities 125,130 386,625 62,184 Recreation and culture 2,657,568 3,689,842 3,173,435 Transport 8,925,038 11,703,240 6,082,859 Economic services 171,076 350,000 1,316,572 Other property and services 203,617 248,480 262,551 27,472,488 25,185,651 20,496,549

Total Income 61,309,936 58,027,813 53,182,240

Expenses

Governance (2,137,373) (2,254,744) (2,049,692) General purpose funding (409,421) (413,849) (342,487) Law, order, public safety (2,039,811) (1,875,500) (1,686,213) Health (317,865) (427,143) (386,333) Education and welfare (4,991,719) (5,727,252) (4,785,913)

Community amenities (5,774,954) (5,913,856) (4,588,751) Recreation and culture (13,380,721) (12,782,424) (12,193,046) Transport (19,709,647) (18,596,044) (18,160,439) Economic services (1,829,012) (2,156,756) (1,770,076) Other property and services (1,077,761) (955,972) (1,031,393)

Total expenses (51,668,284) (51,103,540) (46,994,343)

Net result for the period 9,641,652 6,924,273 6,187,897

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

23. FUNCTION AND ACTIVITY

(Continued)

2022 2022 2021 Actual Budget Actual

(c) Fees and Charges $ $ $

Governance 9,367 8,900 10,284 Law, order, public safety 74,991 64,250 67,967 Health 53,907 57,500 34,222 Education and welfare 571,817 776,400 757,323 Community amenities 5,376,313 4,771,300 4,931,008 Recreation and culture 1,880,551 1,758,800 1,641,342 Transport 1,561,936 1,423,966 1,078,872 Economic services 521,730 477,950 378,119 Other property and services 211,527 106,300 141,335 10,262,139 9,445,366 9,040,472 2022 2021

(d) Total Assets $ $

Governance 32,170,521 32,689,932

General purpose funding 5,794,929 3,381,244 Law, order, public safety 8,805,091 6,930,424 Health 12,800 13,200 Education and welfare 7,204,284 7,189,874 Community amenities 14,773,374 13,636,657 Recreation and culture 69,187,243 68,883,949 Transport 411,844,804 406,153,268 Economic services 759,248 1,241,951 Other property and services 7,113,596 7,352,167 Unallocated 15,781,304 16,387,952 573,447,194 563,860,618

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

24. RATING INFORMATION

(a) General Rates

2021/22 2021/22 2021/22 2021/22 2021/22 2021/22 2021/22 2021/22 2021/22 2020/21 Number Actual Actual Actual Actual Actual Budget Budget Budget Budget Actual

RATE TYPE Rate in of Rateable Rate Interim Back Total Rate Interim Back Total Total

Rate Description Basis of valuation $ Properties Value * Revenue Rates Rates Revenue Revenue Rate Rate Revenue Revenue $ $ $ $ $ $ $ $ $ $

GRV - Residential Gross rental valuation 0.101702 3,899 65,481,730 6,659,624 38,560 923 6,699,107 6,655,392 29,561 0 6,684,953 6,460,100

GRV - Commercial Gross rental valuation 0.101702 413 27,071,813 2,753,258 11,508 0 2,764,766 2,755,500 0 0 2,755,500 2,677,918

GRV - Vacant Gross rental valuation 0.101702 89 1,666,485 169,485 (5,195) (1,226) 163,064 169,485 0 0 169,485 167,204

UV - Rural Unimproved valuation 0.006342 1,037 1,481,941,000 9,398,470 511 (125) 9,398,856 9,398,470 0 0 9,398,470 9,164,688

UV - Mining Unimproved valuation 0.006342 0 0 0 0 0 0 0 0 0 0 2,132

UV - Commercial Industrial Unimproved valuation 0.006342 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 5,438 1,576,161,028 18,980,837 45,384 (428) 19,025,793 18,978,847 29,561 0 19,008,408 18,472,042 Minimum

Minimum payment $

GRV - Residential Gross rental valuation 1,201 1,375 13,253,541 1,651,375 (2,599) (99) 1,648,677 1,651,375 0 0 1,651,375 1,601,627

GRV - Commercial Gross rental valuation 1,201 63 427,175 75,663 0 0 75,663 75,663 0 0 75,663 73,458

GRV - Vacant Gross rental valuation 1,201 560 2,772,262 672,560 (14,103) (284) 658,173 673,761 0 0 673,761 658,751

UV - Rural Unimproved valuation 1,201 140 16,843,000 168,139 497 (96) 168,540 168,140 0 0 168,140 122,657

UV - Mining Unimproved valuation 1,201 74 986,975 88,874 43,667 725 133,266 88,874 0 0 88,874 74,300

UV - Commercial Industrial Unimproved valuation 1,201 3 172,100 3,603 0 0 3,603 3,603 0 0 3,603 3,498

Sub-Total 2,215 34,455,053 2,660,214 27,462 246 2,687,922 2,661,416 0 0 2,661,416 2,534,291 7,653 1,610,616,081 21,641,051 72,846 (182) 21,713,715 21,640,263 29,561 0 21,669,824 21,006,333 (16,214) (16,800) (18,073)

Total amount raised from general rates (excluding ex-gratia and prepaid rates) 21,697,501 21,653,024 20,988,260 * Rateable value is based on the value of properties at the time the rate is raised.

(b) Rates (excluding general rates) Rate in

Ex-gratia Rates and Prepaid Rates $ CBH Storage Facilities N/A 0 0 323,270 0 0 323,270 323,270 0 0 323,270 313,858 Prepaid Rates N/A 0 0 94,259 0 0 94,259 100,000 0 0 100,000 211,201 Sub-Total 0 0 417,529 0 0 417,529 423,270 0 0 423,270 525,059

Total amount raised from rates 417,529 423,270 525,059

(c) Total Rates 22,115,030 22,076,294 21,513,319

The entire balance of rates revenue has been recognised at a point in time in accordance with AASB 1058 Income for not-for-profit entities .

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

24. RATING INFORMATION (Continued)

(d) Discounts, Incentives, Concessions, & Write-offs Waivers or Concessions

Rate or Fee and Charge to which the Waiver or Waiver/ 2022 2022 2021 Concession is Granted Type Concession Discount Discount Actual Budget Actual % $ $ $ $

Unserviced Development Area 3 Lots Concession 50.00% 601 15,613 16,199 17,490 Unserviced Israelite Bay Lot Concession 50.00% 601 601 601 583

16,214 16,800 18,073

Total discounts/concessions (Note 24) 16,214 16,800 18,073

Rate or Fee and Circumstances in which Charge to which the Waiver or Concession is the Waiver or Granted and to whom it was

Objects of the Waiver Reasons for the Waiver Concession is Granted available or Concession or Concession

Unserviced Development Area Development Area 3 properties No access to Shire services Lots remain unserviced and unable to be developed

Unserviced Israelite Bay Lot Israelite Bay lot No access to Shire services Lot remains unserviced and extremely remote to Shire services

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

24. RATING INFORMATION (Continued)

(e) Interest Charges & Instalments

Instalment Instalment Unpaid Rates Date Plan Plan Interest Instalment Options Due Admin Charge Interest Rate Rate $ % %

Option One

Single full payment 29/09/2021 0.0 0.00% 7.00%

Option Two

First instalment 29/09/2021 0.0 2.00% 7.00%

Second instalment 24/11/2021

Third instalment 19/01/2022

Fourth instalment 16/03/2022

2022 2022 2021 Actual Budget Actual $ $ $

Interest on unpaid rates 14,798 16,000 12,553

Interest on instalment plan 32,043 35,000 34,950 46,841 51,000 47,503

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

25. RATE SETTING STATEMENT INFORMATION

2021/22 2021/22 Budget 2021/22 2020/21 (30 June 2022 (30 June 2022 (1 July 2021 (30 June 2021 Carried Carried Brought Carried Note Forward) Forward) Forward) Forward $ $ $ $

(a) Non-cash amounts excluded from operating activities

The following non-cash revenue or expenditure has been excluded from amounts attributable to operating activities within the Rate Setting Statement in accordance with Financial Management Regulation 32.

Adjustments to operating activities

Less: Profit on asset disposals 10(b) (383,422) (292,496) (957,096) (957,096)

Less: Movement in liabilities associated with restricted cash 337,630 (1,711,683) (1,711,683)

Add: Loss on disposal of assets 10(b) 202,379 588,643 196,058 196,058

Add: Depreciation 10(a) 19,333,077 17,625,921 17,671,550 17,671,550

Non-cash movements in non-current assets and liabilities:

Pensioner deferred rates 5,667 10,000 (8,344) (8,344) Movement in lease liabilities (17,133) (15,000)

Employee benefit provisions (71,007) (27,583) (58,131) (58,131)

Inventory 119,277 1,342,636 1,342,636 Non-cash amounts excluded from operating activities 19,526,468 17,889,485 16,474,990 16,474,990

(b) Surplus/(deficit) after imposition of general rates

The following current assets and liabilities have been excluded from the net current assets used in the Rate Setting Statement in accordance with Financial Management Regulation 32 to agree to the surplus/(deficit) after imposition of general rates.

Adjustments to net current assets

Less: Reserve accounts 27 (33,959,332) (23,112,251) (29,230,099) (29,230,099)

Less: Financial assets at amortised cost - self supporting loans 4(a) (198,228) (155,748) (169,328) (169,328)

- Land held for resale 6 (176,057) (229,634) (176,057) (176,057)

Add: Current liabilities not expected to be cleared at end of year

- Current portion of borrowings 14 250,645 838,837 219,453 219,453

- Proceeds from financial assets at amortised cost - Term Deposits 9,200,000 9,200,000

- Current portion of lease liabilities 11(b) 0 15,000 0 0

- Employee benefit provisions 1,720,919 1,716,725 1,652,420 1,652,420

Total adjustments to net current assets (32,362,053) (20,927,071) (18,503,611) (18,503,611)

Net current assets used in the Rate Setting Statement

Total current assets 44,997,728 29,502,318 32,020,681 32,020,681

Less: Total current liabilities (8,716,475) (8,575,247) (9,557,785) (9,557,785)

Less: Total adjustments to net current assets (32,362,053) (20,927,071) (18,503,611) (18,503,611)

Net current assets used in the Rate Setting Statement 3,919,200 0 3,959,285 3,959,285

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

26. BORROWING AND LEASE LIABILITIES

(a) Borrowings

Purpose Note Principal at 1 July 2020 New Loans During 2020-21

Notes to and forming part of the Financial Report Budget Actual

Principal Repayments During 2020-21 Principal at 30 June 2021 New Loans During 2021-22

Principal Repayments During 2021-22 Principal at 30 June 2022 Principal at 1 July 2021 New Loans During 2021-22

Principal Repayments During 2021-22 Principal at 30 June 2022 $ $ $ $ $ $ $ $ $ $ $

Shark Lake Industrial Park 826,267 0 (47,935) 778,332 0 (50,126) 728,206 778,332 0 (50,126) 728,206

Total 826,267 0 (47,935) 778,332 0 (50,126) 728,206 778,332 0 (50,126) 728,206

Self Supporting Loans

Pink Lake Country Club 52,137 0 (22,219) 29,918 0 (23,735) 6,183 29,918 0 (23,735) 6,183

Recherche Aged Welfare 236,517 0 (16,393) 220,124 0 (17,461) 202,663 220,125 0 (17,460) 202,665

Esperance Squash Club 3,930 0 (3,931) (1) 0 1 0 0 0 0 0

Esperance Bay Yacht Club 310,221 0 (16,559) 293,662 0 (17,399) 276,263 293,662 0 (17,399) 276,263

Newtown Condingup Football Club 49,407 0 (5,542) 43,865 0 (5,712) 38,153 43,866 0 (5,712) 38,154

Esperance Bay Yacht Club 42,819 0 (11,836) 30,983 0 (12,150) 18,833 30,982 0 (12,149) 18,833

Gibson Football Club 161,929 0 (39,013) 122,916 0 (39,976) 82,940 122,916 0 (39,977) 82,939

Condingup District Recreation Association 500,000 0 (47,512) 452,488 0 (47,942) 404,546 451,996 0 (47,942) 404,054

Esperance Tennis Club 0 20,000 0 20,000 0 (4,954) 15,046 0 0 (4,954) (4,954) Esperance Bay Yacht Club 0 0 0 0 750,000 (10,466) 739,534 0 800,000 0 800,000

Total Self Supporting Loans 1,356,960 20,000 (163,005) 1,213,955 750,000 (179,794) 1,784,161 1,193,465 800,000 (169,328) 1,824,137

Total Borrowings 14 2,183,227 20,000 (210,940) 1,992,287 750,000 (229,920) 2,512,369 1,971,797 800,000 (219,454) 2,552,343

* WA Treasury Corporation

Self supporting loans are financed by payments from third parties. These are shown in Note 4 as other financial assets at amortised cost. All other loan repayments were financed by general purpose revenue.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

26 BORROWING AND LEASE LIABILITIES (Continued

Borrowing Interest Repayments (Continued)

Purpose Note Function and activity Loan Number Institution Interest Rate

Notes to and forming part of the Financial

Actual for year ending 30 June 2022

Actual for year ending 30 June 2021 $ $ $

Budget for year ending 30 June 2022

Shark Lake Industrial Park Other property and services 296 WATC 4.52% (39,845) (39,850) (42,327)

Total (39,845) (39,850) (42,327)

Self Supporting Loans Interest Repayments

Pink Lake Country Club

Recreation & culture 261 WATC 6.55% (1,066) (1,156) (2,400)

Recherche Aged Welfare Recreation & culture 291 WATC 6.36% (15,024) (15,056) (16,197)

Esperance Squash Club Recreation & culture 292 WATC 6.05% (89) 0 (533)

Esperance Bay Yacht Club Recreation & culture 295 WATC 5.01% (16,134) (16,166) (17,077)

Newtown Condingup Football Club Recreation & culture 299 WATC 3.05% (1,589) (1,443) (1,799)

Esperance Bay Yacht Club Recreation & culture 300 WATC 2.63% (852) (850) (1,250)

Gibson Football Club Recreation & culture 301 WATC 2.47% (3,345) (3,353) (4,590)

Condingup District Recreation Association Recreation & culture 302 WATC 0.90% (7,005) (7,020) (7,769)

Esperance Tennis Club Recreation & culture 303 WATC 0.61% (252) (252) (45)

Esperance Bay Yacht Club Recreation & culture 304 WATC 2.34% (10,579) 0 0

Total Self Supporting Loans Interest Repayments (55,935) (45,296) (51,660)

Total Interest Repayments 2(b) (95,780) (85,146) (93,987)

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

26. BORROWING AND LEASE LIABILITIES (Continued)

(b) New Borrowings - 2021/22

Amount (Used) Amount

Notes to and forming part of the Financial Report

Total Actual

Loan Term Interest 2022 2022 2022 2022 Interest & Balance Institution Type Years Rate Actual Budget Actual Budget Charges Unspent Particulars/Purpose % $ $ $ $ $ $ Esperance Bay Yacht Club WATC Debenture 15 years 2.34% 750,000 800,000 (750,000) (800,000) 0 0 750,000 800,000 (750,000) (800,000) 0 0

* WA Treasury Corporation

(c) Lease Liabilities

Purpose Note Principal at 1 July 2020 New Leases During 2020-21

Principal Repayments During 2020-21 Principal at 30 June 2021 New Leases During 2021-22

Principal Repayments During 2021-22 Principal at 30 June 2022 Principal at 1 July 2021 New Leases During 2021-22

Principal Repayments During 2021-22 Principal at 30 June 2022 $ $ $ $ $ $ $ $ $ $ $

Motor vehicle 16,127 0 (10,714) 5,413 0 (5,413) 0 5,413 0 (5,413) 0 Gym Equipment 56,460 0 (16,663) 39,797 0 (16,897) 22,900 39,798 0 (16,897) 22,901 Motor vehicle 0 0 0 0 10,398 (4,426) 5,972 0 0 0 0

Total Lease Liabilities 11(b) 72,587 0 (27,377) 45,210 10,398 (26,736) 28,872 45,211 0 (22,310) 22,901

Lease Interest Repayments

Purpose Note Function and activity Lease Number Institution Interest Rate

Actual for year ending 30 June 2022

Actual for year ending 30 June 2021 Lease Term $ $ $

Budget for year ending 30 June 2022

Motor vehicle Law, order, public safety Toyota Fleet 1.40% (21) (21) (153) 36 months Gym Equipment Recreation and culture Maia Financial 1.40% (447) (447) (680) 60 months Motor vehicle Law, order, public safety Toyota Fleet 1.40% (117) 0 0 27 months

Total Interest Repayments 2(b) (585) (468) (833)

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

2022 2022 2022 2022 2022 2022 2022 2022 2021 2021 2021 2021 Actual Actual Actual Actual Budget Budget Budget Budget Actual Actual Actual Actual

27. Opening Balance Transfer to Transfer (from) Closing Balance Opening Balance Transfer to Transfer (from) Closing Balance Opening Balance Transfer to Transfer (from) Closing Balance $ $ $ $ $ $ $ $ $ $ $ $

RESERVE ACCOUNTS

Restricted by council

(a) Employee Entitlements Long Service Leave 1,082,308 16,058 0 1,098,366 1,188,505 7,142 0 1,195,647 1,076,267 6,041 0 1,082,308

(b) Land Purchase and Development 3,432,267 874,534 (147,038) 4,159,763 3,432,267 717,577 (1,470,954) 2,678,890 1,336,260 2,187,500 (91,493) 3,432,267 (c) Eastern Suburbs Water Pipeline 38,025 113 0 38,138 38,025 251 0 38,276 186,976 1,049 (150,000) 38,025 (d) Jetty 7,065 166,180 0 173,245 7,064 140,045 0 147,109 1,064,514 145,975 (1,203,424) 7,065 (e) Aerodrome 6,155,610 623,337 (236,629) 6,542,318 6,155,610 210,433 (279,457) 6,086,586 7,078,059 271,780 (1,194,229) 6,155,610

(f) Off Street Parking 541,283 1,615 0 542,898 541,284 3,572 0 544,856 538,262 3,021 0 541,283 (g) Sanitation (Rubbish Removal) 8,566,604 1,409,657 0 9,976,261 8,566,604 1,174,910 (549,000) 9,192,514 6,981,470 1,874,560 (289,426) 8,566,604 (h) EHC Asset Replacement 983,664 214,949 0 1,198,613 983,664 4,616 (433,000) 555,280 951,172 32,492 0 983,664 (i) Esperance Home Care Fundraising 275,432 82,458 0 357,890 275,432 2,915 0 278,347 455,250 2,555 (182,373) 275,432 (j) Unspent Grant & Contributions 4,151,016 6,220,287 (4,151,016) 6,220,287 5,058,268 0 (5,058,268) 0 3,757,089 4,151,016 (3,757,089) 4,151,016 (k) Plant Replacement 482,913 1,440 0 484,353 482,914 3,171 0 486,085 558,768 3,136 (78,991) 482,913 (l) Building Maintenance 1,878,254 662,349 (896,053) 1,644,550 1,878,254 10,969 (1,436,127) 453,096 3,307,804 486,840 (1,916,390) 1,878,254

(m) Governance & Workers Compensation 147,193 80,439 (150,000) 77,632 147,193 142,660 (150,000) 139,853 222,662 118,077 (193,546) 147,193 (n) IT System & Process Development 117,160 349 (55,965) 61,544 117,160 245 (80,000) 37,405 116,506 654 0 117,160

(o) Esperance Home Care Annual Leave 382,688 19,947 0 402,635 276,491 1,680 0 278,171 253,231 129,457 0 382,688

(p) Esperance Home Care Long Service Leave 241,470 11,379 0 252,849 241,469 1,440 0 242,909 217,000 24,470 0 241,470 (q) Priority Projects 747,147 52,229 (71,386) 727,990 747,147 54,798 (44,718) 757,227 1,890,187 60,609 (1,203,649) 747,147 29,230,099 10,437,320 (5,708,087) 33,959,332 30,137,351 2,476,424 (9,501,524) 23,112,251 29,991,477 9,499,232 (10,260,610) 29,230,099

All reserves are supported by cash and cash equivalents and are restricted within equity as Reserves - cash backed.

In accordance with Council resolutions or adopted budget in relation to each reserve account, the purpose for which the reserves are set aside and their anticipated date of use are as follows:

Shire of Esperance

Annual Financial Report

For the year ended 30th June 2022

27. RESERVE ACCOUNTS (Continued)

Name of Reserve

Anticipated date of use Purpose of the reserve

(a) Employee Entitlements Long Service Leave Ongoing

Notes to and forming part of the Financial Report

Established to fund a portion of future commitments for employee entitlements incurred as a result of employing staff and workers in relation to Long Service Leave. Home Care Long Service Leave Reserve specific to Esperance Home Care.

(b) Land Purchase and Development Ongoing Established to fund land improvement and sub-division development.

(c) Eastern Suburbs Water Pipeline Ongoing Established to provide funds to recycle waste water to recreation grounds. Funded by the proceeds from the sale of water to users.

(d) Jetty Ongoing Established to provide funds for maintenance and capital works of the main jetty at the Foreshore Headland. Funded from general purpose income and donations.

(e) Aerodrome Ongoing Established to fund future development and upgrades of airport facility. Funded by the annual surplus derived from operations of the airport.

(f) Off Street Parking Ongoing

(g) Sanitation (Rubbish Removal) Ongoing

(h) EHC Asset Replacement Ongoing

Established to provide funds for the future development of central business car parking in order to make provisions for future business expansion of the CBD. Funded by general purpose income and contributions.

Established to fund the purchase of major sanitation equipment and for the future development of waste disposal facilities. Funded from the annual surplus derived from property rubbish disposal collection fees after expenses.

Established for the purpose of Esperance Home Care to hold annual depreciation reserved and surplus cash for the replacement of HACC and other externally funded assets in accordance with HACC guidelines.

(i) Esperance Home Care Fundraising Ongoing Established for the purpose of holding the net proceeds of volunteer fundraising activities relating to the operation of Esperance Home Care.

(j) Unspent Grant & Contributions Ongoing Established for the purpose of containing funds that are derived from unspent or prepaid grants and contributions from external parties.

(k) Plant Replacement Ongoing

Established to minimise and if possible eliminate any need to rely upon loan finance or unreasonable rate increases to finance the acquisition of major plant items as per Council Policy. Funding is from general purpose income. Amounts allocated will be re-assessed annually in response to revision of the five year plant replacement program and the associated forward cost estimates.

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

(m) Governance & Workers Compensation Ongoing

(n) IT System & Process Development Ongoing

Established for the purpose of future workers compensation insurance costs under the performance based contribution scheme; or cyclical gross rental valuation cost for rating purposes; or unforeseen legal costs.

Established to finance the acquisition and enhancement of information technology across the Shire. Ongoing appropriations from the Municipal Fund are provided as and when needed.

(o) Esperance Home Care Annual Leave Ongoing Established to fund future commitments for annual leave entitlements as a result of employing staff. Funded from external grant funding.

(p) Esperance Home Care Long Service Leave Ongoing Established to fund future commitments for long service leave entitlements as a result of employing staff. Funded from external grant funding.

(q) Priority Projects Ongoing Established to fund sufficient capacity to assist with the design, construction and operation of priority projects as determined by Council.

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

28. TRUST FUNDS

Notes to and forming part of the Financial Report

Funds held at balance date which are required to be held in trust and which are not included in the financial statements are as follows:

1 July 2021 Amounts Received Amounts Paid 30 June 2022 $ $ $ $

Contributions to Public Open Space 197,113 477 0 197,590

Other Deposits 1,124 0 0 1,124

General Bonds - Interest Bearing 39,844 10,945 0 50,789 238,081 11,422 0 249,503

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

29. MAJOR LAND TRANSACTIONS

Flinders Residential Subdivision

(a) Details

The Council owned, freehold, East Location 18, Lot 3 which is bounded by Ormonde Street and Goldfields Road Esperance. During 2003/2004 the Council created 33 blocks from part of Lot 3. These blocks were sold at auction and profit transferred into a cash reserve established for land Development. The Council developed a further 90 lots as Stage 2 during 2009/2010. 85 lots have been sold with remainder to be progressively sold subject to market demand.

2022 2022 2021

(b) Current year transactions Actual Budget Actual $ $ $

Other revenue

- Sale proceeds 326,159 350,000 2,334,316

Other expenditure

- Cost of goods sold (24,131) (970,954) (74,344) 302,028 (620,954) 2,259,972

The above operating revenue for the proceeds of land held for resale is reflected in other revenue and operating expenditure for the cost of the disposed land held for resale is reflected in other expenditure.

(c)

Expected future cash flows

Cash outflows

2022/23 2023/24 2024/25 2025/26 Total $ $ $ $ $

- Development costs (2,378,823) (4,551,177) 0 0 (6,930,000)

- Printing, stationery & marketing (4,000) (38,300) (96,650) (64,450) (203,400)

- Loan repayments 0 (416,328) (416,329) (416,330) (1,248,987)

- Land Development reserve (780,000) 0 (1,677,021) (989,220) (3,446,241) (3,162,823) (5,005,805) (2,190,000) (1,470,000) (11,828,628)

Cash inflows

- Sale proceeds 780,000 780,000 2,190,000 1,470,000 5,220,000

- Proceeds from new borrowings 0 3,500,000 0 0 3,500,000

- Land Development reserve 2,378,823 725,805 0 0 3,104,628 3,158,823 5,005,805 2,190,000 1,470,000 11,824,628

Net cash flows (4,000) 0 0 0 (4,000)

(d) Assets and liabilities

Land held for resale included within Note 6 2022 2021 $ $

Current Inventory Land held for resale 176,057 176,057

Non Current Inventory Land held for resale 1,353,324 1,510,122

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

29. MAJOR LAND TRANSACTIONS (Continued)

Shark Lake Industrial Park (SLIP) - Shire Subdivision

(a) Details

Notes to and forming part of the Financial Report

During the 2010/2011 financial year the Council continued to undertake a major land transactions as defined under the Local Government Act 1995 . With the Superlot Stage of the Shark Lake Industrial Park subdivision complete, Council has further subdivided the acquired superlot in approximately 28 general industries lots of varying sizes. Stage 1 consisting of the 28 lots has been completely developed at a total capital cost of $1,037,953 excluding the costs associated with acquiring the superlot. Only 2 lots have been sold to date and all remaining lots are listed for sale with local real estate agents with Council taking a longer term view with this strategic industrial development site. The remaining lots are currently leased for grazing resulting in weed and fire control land.

2022 2022 2021

(b)

Current

year transactions Actual Budget Actual $ $ $

Other revenue

- Sale proceeds 135,192 150,000 0

Other expenditure - Loan repayments (50,126) (50,126) (47,935) 85,066 99,874 (47,935)

The above operating revenue for the proceeds of land held for resale is reflected in other revenue and operating expenditure for the loan repayments is reflected in other expenditure.

(c) Expected future cash flows

Cash outflows

2022/23 2023/24 2024/25 2025/26 Total $ $ $ $ $

- Interest expense (37,254) (34,712) (31,895) (28,923) (132,784)

- Loan repayments (52,417) (54,813) (57,319) (59,939) (224,488)

- Sundry supplies & expenditure (2,000) (2,000) (2,000) (2,000) (8,000)

- Land Development reserve 0 (128,975) (129,286) (129,638) (387,899) (91,671) (220,500) (220,500) (220,500) (753,171)

Cash inflows

- Sale proceeds 200,000 200,000 200,000 200,000 800,000

- SLIP rate income 10,000 10,000 10,000 10,000 40,000

- Lease income 10,500 10,500 10,500 10,500 42,000 220,500 220,500 220,500 220,500 882,000

Net cash flows 128,829 0 0 0 128,829

(d) Assets and liabilities

Land held for resale included within Note 6 2022 2021 $ $

Non Current Inventory Land held for resale 3,774,582 3,893,859

Non Current Inventory Land held for resale 2,303,274 2,383,737

Shire of Esperance Annual Financial Report

For the year ended 30th June 2022

Notes to and forming part of the Financial Report

30. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

Esperance Aerodrome

(a) Details

Council's objective is to maintain a safe landing airstrip and functional airport amenities conducive to the promotion of the district as a tourist and business destination. Operating costs are met by landing fees charges. Annual surpluses are transferred to a cash reserve to finance future improvements to the facility.

2022 2022 2021

(b) Current year transactions

Other revenue

Actual Budget Actual $ $ $

- Landing fees 1,046,624 1,050,000 819,793

- Property rental 39,809 32,000 29,613

- Air BP Refuelling 142,024 120,966 0

- Reimbursements 7,609 15,000 6,272

- Sundry income 4,182 1,000 1,948

- Grants and subidies 1,545 0 1,299

Other expenditure

- Employee expenses (255,035) (284,474) (320,664)

- Insurance (8,939) (9,873) (8,976)

- Building expenses (89,148) (354,471) (72,339)

- Grounds & strip maintenance (26,522) (68,000) (31,851)

- Other sundry expenses (149,633) (157,488) (115,973)

- Special projects 0 (71,200) 0

- Overhead allocation (107,541) (102,902) (77,070)

- Depreciation (320,442) (329,338) (330,217) 284,533 (158,780) (98,165)

Capital income

- Reserve transfer 61,629 104,457 19,229

Capital expenditure

- Purchases (26,052) (71,457) 0

- Airside projects (35,577) (33,000) 0

- Landside projects 0 0 (19,229) 0 0 0

Net result 284,533 (158,780) (98,165)

Auditor General

INDEPENDENT AUDITOR’S REPORT 2022

Shire of Esperance

To the Councillors of the Shire of Esperance

Opinion

I have audited the financial report of the Shire of Esperance (Shire) which comprises:

• the Statement of Financial Position at 30 June 2022, the Statement of Comprehensive Income by Nature or Type, Statement of Changes in Equity, and Statement of Cash Flows and Rate Setting Statement for the year then ended

• Notes comprising a summary of significant accounting policies and other explanatory information.

In my opinion, the financial report is:

• based on proper accounts and records

• presents fairly, in all material respects, the results of the operations of the Shire for the year ended 30 June 2022 and its financial position at the end of that period

• in accordance with the Local Government Act 1995 (the Act) and, to the extent that they are not inconsistent with the Act, Australian Accounting Standards.

Basis for opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section below.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other information

The Chief Executive Officer (CEO) is responsible for the preparation and the Council for overseeing the other information. The other information is the information in the entity’s annual report for the year ended 30 June 2022, but not the financial report and my auditor’s report.

My opinion on the financial report does not cover the other information and, accordingly, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I did not receive the other information prior to the date of this auditor’s report. When I do receive it, I will read it and if I conclude that there is a material misstatement in this information, I am required to communicate the matter to the CEO and Council and request them to correct the misstated information. If the misstated information is not corrected, I may need to retract this auditor’s report and re-issue an amended report.

Responsibilities of the Chief Executive Officer and Council for the financial report

The Chief Executive Officer of the Shire is responsible for:

• preparation and fair presentation of the financial report in accordance with the requirements of the Act, the Regulations and Australian Accounting Standards

• managing internal control as required by the CEO to ensure the financial report is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the CEO is responsible for:

• assessing the Shire’s ability to continue as a going concern

• disclosing, as applicable, matters related to going concern

• using the going concern basis of accounting unless the State Government has made decisions affecting the continued existence of the Shire.

The Council is responsible for overseeing the Shire’s financial reporting process.

Auditor’s responsibilities for the audit of the financial report

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial report. The objectives of my audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

A further description of my responsibilities for the audit of the financial report is located on the Auditing and Assurance Standards Board website. This description forms part of my auditor’s report and can be found at https://www.auasb.gov.au/auditors_responsibilities/ar4.pdf.

My independence and quality control relating to the report on the financial report

I have complied with the independence requirements of the Auditor General Act 2006 and the relevant ethical requirements relating to assurance engagements. In accordance with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements, the Office of the Auditor General maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Matters relating to the electronic publication of the audited financial report

This auditor’s report relates to the financial report of the Shire of Esperance for the year ended 30 June 2022 included in the annual report on the Shire’s website. The Shire’s management is responsible for the integrity of the Shire’s website. This audit does not provide assurance on the integrity of the Shire’s website. The auditor’s report refers only to the financial report. It does not provide an opinion on any other information which may have been hyperlinked to/from the annual report. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to contact the Shire to confirm the information contained in the website version.

Senior

Delegate of the Auditor General for Western Australia

Perth, Western Australia 22 November 2022