City Of Fremantle Minutes – SMRC RRRC WCF Odour Issue – 22 August 2007
Southern Metropolitan Regional Council – Regional Finance Group Meeting
DataWorks Reference: 038/012
Author: Glen Dougall, Director Corporate Services
Agenda Attachments: Attachments 1 & 2
The un-audited financial statements to 30 June, 2007 were presented at this meeting. Basically, a surplus of $311,000 was made from the Waste Composting Facility and this surplus is being used to support a deficit of $130,000 from the Recycling Facility and a deficit of $47,000 from the Greenwaste Facility.
The surplus from the WCF is due to the increase in tonnages put through for the year, the increase in the gate fee assisted with this as well. Due to the closure of the facility at different times the total tonnage received did not meet the budget expectations, however as tonnages were up when open the cost per unit decreased for the tonnage processed
when compared to the previous year.
The deficit for the Recycling Facility occurred due to the change-over to the new plant. The budget had allowed for the new plant to commence operation from June, however practical completion is still taking place. Whilst the plant is now receiving all waste provided by the member council’s this has only recently occurred. Practical completion is due to be finalized within the next three weeks. There is some recycling stockpile that is sitting on-site and has a value of approximately $200,000. This stockpile has been water damaged and will need to be reprocessed to ensure the bundles have not become hardened (like paper mache) and the income form this may offset some of the loss.
Greenwaste was always going to finish in deficit, but is only small and incidental to the rest of the operation.
All plant replacement reserves have been established in accordance with the budget. This is significant in that it is the first year of plant replacement funds being established for each facility. Whilst the WCF fund is lower than required it is a step in the right direction.
Not all loan funds have been raised as yet and there is a small unspent loans allocation at year end. The main reason for this is that there are still two payments for the new recycling plant. These payments will not be released until the practical completion demonstrates the facility is working in accordance with specifications. The remainder of the loan funds will be carried forward into next financial year for this purpose.
During the course of discussions with the regional finance group it was decided that the SMRC should undertake revaluations of their assets. This is yet to occur so there may be some adjustment to the balance sheet before the audit is finalised. This will also influence each member’s equity. The revaluation is planned for the beginning of August with the final report expected to be completed by the end of August.
