annual report - City of Bayswater

The Local Government
reporting entity
All Funds through which the Council
controls resources to carry on its
functions have been included in the
financial statements forming part of
this financial report.
Principles of consolidation
All entities through which Council
controls resources to carry on
its operation have been included
in the financial statements. This
encompasses:
• Main Entity
The Municipality of the City
of Bayswater
• Consolidation
–– The Municipality of the
City of Bayswater
–– The City of Bayswater
Child Care Centre
Association (Inc)
Statement of
financial position
The 2008-09 balance sheet results
indicate the City of Bayswater
experienced an increase in net
assets during the financial year.
Statement of
changes in equity
The 2008-09 Equity Statement
shows that the City experienced
an increase in reserves of
$3.337 million to $13.691 million.
Income statement by
function activity
The Income Statement for 2008-09
revealed an increase in operating
revenue of $3.454 million and
a $0.923 million decrease in
operating expenditure.
Borrowings decreased from $4.035
million to $3.641 million mainly
as a result of a reduction in loan
liability. Grants and contributions
for the development of assets
increased from $3.141 million to
$12.431 million.
The significant movement in
operations from the previous financial
year which reported a $1.869 million
deficit to a $1.149 million surplus
is mainly attributed to the increase
in grants for the development
of assets and a $0.497 million
increase in equity movement in
the Eastern Metropolitan Regional
Council (EMRC).
Investment – Eastern
Metropolitan Regional
Council
The City of Bayswater has a share
in the net assets of the Eastern
Metropolitan Regional Council
(EMRC) as a member council.
The accounting share applicable to
the City of Bayswater at 30 June
2009, as disclosed in the financial
statements of the EMRC, was $9.105
million, or 19.77 per cent of the
total equity of the EMRC, which has
increased by $497,568 in 2008-09.
The member councils’ equity
holdings in the EMRC as at 30 June
2009 take into account, in EMRC’S
book, unrealised loss from change
in fair value of investments of
$3,250,474 for the 2008-09 financial
year (or $642,618, being the City of
Bayswater’s share). However, after
taking into account this unrealised
loss, the City’s investment has still
increased by $497,568 in 2008-09.
It should be noted that the total
unrealised loss from the change
in fair value of the investment to
30 June 2009 is $7,430,675 (the
City of Bayswater’s share being
$1,469,044). This is reflected in
the total equity of $9.105 million.
Grants
The City received $18.819 million in grants and subsidies.
These were used in the following areas:
$
Operating $6,387,600
Non-operating $12,431,460
General purpose funding $2,253,432
Law order and public safety $53,500
Health $77,861
Education and welfare $4,694,264
Community amenities $13,700
Recreation and culture $10,328,037
Transport/community amenities $1,398,266
Rates
The City received $25.574 million in rates income during 2008-09. Rates
were based on the Gross Rental Value (GRV) of the property as determined
by the Valuer General’s Office. Gross rental values in the district as at
30 June 2009 were $417.148 million.
city of bayswater annual report 2008-09 29