MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
• Rates income of $342k received in advance for the 2012/2013 financial year;
• Better than expected interest earnings with excess funds available for investment as
a result of timing expenditure differences and favourable interest rates giving rise to
this result;
• Decline in fees and charges with the Wembley Golf Course experiencing a reduction
in green fee revenue of $468k with the golf industry still impacted by the aftermath of
the global financial crisis.
• Savings and timing delays in expenditures on materials and contractors of $1.1
million as compared to budget.
Statement of Financial Position
Current Assets
Current assets decreased slightly from $26.4 million to $26.3 million during the year. The
two major movements being primarily as a result of the decrease in financial assets of
$492k with the redemption of a floating rate maturing which was partially offset by an
increase in trade and other receivables of $300k as a result of an increase in waste fees
raised during the year.
The other point to note is that the inventories of $5.5 million includes Ocean Mia land held
for resale of $5.2 million which is reflected in the accounts at the lower of cost or net
realisable value. The net market value of this land is estimated between $27 million to $29
million.
Non Current Assets
Property, Plant and Equipment and Infrastructure has increased during the year by $8
million, reflecting the Town's continued commitment to maintaining and enhancing its
infrastructure. The Town expended $10.5 million on assets against depreciation and writeoffs
of $7.2 million. In addition, the Town gained $4.8 million of infrastructure assets as a
contribution from the Perry Lakes Land Development.
Current Liabilities
Trade and Other Payables decreased by $1.9 million with the repayment of $945,100 to the
Commonwealth for the Perry Lakes Reserve Aquifer Recharge project and the transfer of a
$1 million works bonds and deposits liability into trust .
Non Current Liabilities
The Town’s non current loan liability increased by $0.9 million during the year with the
acquisition of 39 Southport Street, West Leederville for $990k financed by a three year fixed
interest loan with the WA Treasury Corporation.
Equity
Accumulated surplus increased by $8.2 million primarily as a result of capital contributions
and expenditure on infrastructure assets beyond depreciation. The overall net worth of the
Town increased by $8.7 million.
Financial Ratios
The statutory financial ratios provide an indication of the reliance on rate funding over other
sources of funds and to measure the impact of loan borrowing and debt servicing. Whilst
there is some movement in the indicators, the ratios reflect a healthy position as shown in
the following table:
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