Warrnambool City Council ANNUAL REPORT 07/08 Warrnambool ...the city by the sea Nestled at the western gateway of the rugged Great Ocean Road and surrounded by a lush hinterland and rural landscapes. Warrnambool means spectacular stretches of coastline with fantastic beaches and sparkling water, beautiful parks and gardens, long stretches of seaside walking and beach trails, visiting whales, notorious shipwrecks, unique volcanoes, great food and exhilarating sports and a thriving City Centre. Warrnambool is the largest city on the Great Ocean Road located 263km south-west of Melbourne, an easy 3 hour drive via Geelong on the Princes Highway or Hamilton Highway. Or, take the scenic route via the Great Ocean Road. This beautiful coastal City has a bustling population of more than 32,000 – that swells to more than 45,000 over the summer months. Warrnambool is among the top five fastest growing regional cities in Victoria. Contents
About Warrnambool 2
Our Commitments 3
Report from the Mayor 4
Councillors 5
Chief Executive’s Overview 6
Organisation Structure 7
Location Map 8
Community Focused Council 9
Natural & Built Environment 21
Safe & Healthy Community 29
A Growing City 37
Responsible Asset Management 45
Warrnambool Best Value Program 50
Statutory & Government Policy Information 50
Victorian Local Government Indicators 2007-08 52
Local Government Improvement Incentive 53 Program Statement 2007-08
Documents Available For Public Inspection 54
Civic Receptions & Ministerial Visits 54
Understanding the Financial Reports 55
1 About Warrnambool Warrnambool is a growing, vibrant centre and is one of the fastest growing regional cities in Victoria. Our City is experiencing unprecedented growth and is expected to be home to 50,000 people by the year 2030 and will service 120,000 people in the region. Currently our City has 31,000 people, an annual expenditure of $50 million and assets worth $368 million. In the past 5 years the amount spent on major projects in the City totals $116 million. This includes the development of The Homemaker Centre, Lady Bay Resort and Mantra Deep Blue, as well as the redevelopment of Lyndoch Warrnambool and the courthouse. In the next 5 years major projects to the value of $317 million will be developed. This will include the expansion of South West Healthcare Warrnambool Campus, Warrnambool Cheese and Butter and South West TAFE. There are currently a number of residential developments underway in the City to the value of around 43 million. These developments will result in the construction of 3,850 new homes in the next 15 years. The City is the major source of employment for its residents, as well as other areas in the South West of Victoria, most notably Moyne Shire. About 25% of Warrnambool’s workforce is employed in the wholesale and retail trade, with a further 30% employed in education, health, community and business services. Jobs in Warrnambool’s manufacturing sector are on the increase. Large investments to dairying plants in the area have resulted in overall employment gains in this sector. Tourism is also a notable employer in Warrnambool with the City attracting many people to its beaches during the warmer months. Whale spotting in winter has also been a big drawcard for tourists. Our tourism industry generates $147 million for our City annually and attracts 703,000 visitors per year to Warrnambool. Overall, employment factors will have a strong bearing on our population in 15 to 20 years in Warrnambool City. The recent development of various industries around the City such as gas production in the Otway Basin, wind farms and timber production are likely to maintain strong employment growth in Warrnambool. This is due to the fact that the City will benefit from expenditure and further growth of its services. Our City will indirectly support almost $6.1 billion worth of projects of State and National significance in coming years. These projects include Woodside Otway Gas ($800 million), Macarthur Windfarm ($800 million), Mortlake Gas Power Generation Plant ($1,000 million), Heywood Pulp Mill ($650 million), IIluka Mineral Sands ($270 million). These projects are expected to generate 4,400 construction jobs and 800 permanent positions. Warrnambool City Council continues to lead the way in innovative projects and activities. The Middle Island Maremma project, where Maremma dogs were used to protect the Little Penguin colony from fox predation, has been awarded for its innovation. Our annual Fun4Kids Festival continues to receive accolades and has won the 2007 Qantas Australian Tourism Award for Festivals and Events for the second year running. To support our community in the next four years Council will spend an estimated $245 million on a wide range of services and activities. In the next four years we will welcome new citizens from interstate and overseas, become more environmentally sustainable and work on innovative projects that have not been thought of today.
UNEMPLOYMENT RATES, WARRNAMBOOL 1998 - 2008
10
9 Warrnambool 8 Regional Victoria 7 Victoria 6
5 % UNEMPLOYMENT 4.3 4
3
2 Our Commitments Our Purpose To benefit the people of Warrnambool by providing: • Responsible governance; • Quality and valued service; and • Effective strategic planning based on the City’s natural features and diverse assets.
Our Vision for Warrnambool • Centre of a prosperous region of outstanding clean and green reputation; • High quality lifestyle; • Learning and enterprising City; and • Leading practice in regional City local government.
Our Values Our decisions, services and allocation of resources will be guided according to the following values:
Good Governance We will have open, accessible and accountable governance in touch with the existing and changing needs of our community.
Fairness and Responsiveness We will ensure that all people are treated with dignity, respect and fairness. Our staff are critical to the achievement of our goals and we are committed to their continuing development.
Service Excellence We are here to serve our community and will strive to meet its needs to the highest affordable standards.
Continuous Improvement We will continually look for ways to improve our services to enhance community benefit.
Communication and Engagement We will deliver accurate, timely and relevant information involving the open exchange of ideas and information with the community.
Environmental Sustainability We will aspire to become be environmentally sustainable and maximise opportunities for all people and future generations to enjoy social and physical well being.
3 Report from the Mayor
It is always encouraging to reflect on Council’s achievements for the past year and to recognise the efforts of the hundreds of people employed by Council to serve our community. This year our 503 staff have achieved some impressive results, many of which go unnoticed by our community. In the past year our Customer Service staff had 91,020 contacts with people and more than 500,000 people used our facilities at the Warrnambool Entertainment Centre, Art Gallery, Warrnambool Stadium and Aquazone. Our library enjoyed unprecedented support in the past year with circulation of library items up by 8.3% - the largest increase in 5 years. From our Community Support division we provided 35,555 home-delivered meals and provided respite, community care and activities to almost 55,000 people. Our events, attractions and programs received State and National recognition with the Fun4Kids Festival, Flagstaff Hill and the Wealthy and Wise Communities Program all awarded throughout the year. Council continued to develop sport and recreation in our City, forming partnerships with 46 clubs who have supported participation of refugee youth in soccer, netball and basketball. We carried out $405,000 worth of upgrades to sports grounds and recreation facilities and provided $58,000 in grants to 34 local clubs and organisations throughout the year. Our staff were also kept busy maintaining our City – we looked after assets valued at $368 million, including 370km kilometres of roads and 284 buildings. We built a new main drain at Morriss Road valued at $1.7 million, upgraded Gateway Road, built new roundabouts and bus shelters and filled countless potholes and cracks in footpaths. All of this work has combined to make our City a wonderful place to live. It is a beautiful City with well-maintained facilities and outstanding services for local residents. This City could not function without the support of the wider community, and on behalf of Council I would like to thank the many thousands of volunteers who make our City a better place to live. The past year has been my last year on Council after 20 years of service. It has again been a privilege to work so closely with Council officers and the community to continue to grow our City. Thank you to my fellow Councillors and Council officers for your commitment and dedication to improving the beautiful City of Warrnambool.
Cr. David Atkinson OAM JP Mayor Warrnambool City Council
4 Councillors
Cr. David Atkinson OAM JP MAYOR Elected March 1996 Re-elected March 1999, 2002, November 2004 Retires 2008 Warrnambool Migrant Resettlement Advisory Committee
Cr. Jack Daffy OAM JP Cr. Adrian Jacobs Elected March 2002 Elected November 2004 Re-elected November 2004 Retires 2008 Retires 2008 Flagstaff Hill Advisory Flagstaff Hill Advisory Committee Committee Public Land & Environment Warrnambool Airport Advisory Committee Reference Group
Cr. Michael Neoh Cr. Jacinta Ermacora Elected November 2004 Elected November 2004 Retires 2008 Retires 2008 Community Services Advisory Audit Committee Committee Public Land & Environment Recreation & Youth Advisory Advisory Committee Committee
Cr. Andrew Fawcett Cr. Glenys Phillpot Elected November 2004 Elected March 1996 Retires 2008 Re-elected March 1999, 2002, Audit Committee November 2004. City Art Advisory Committee Retires 2008 Warrnambool Livestock Built Environment Advisory Exchange Reference Group Committee
5 Chief Executive’s Overview I am very proud to have been Chief Executive of Warrnambool City Council for six months of the reporting period for the 2007/2008 Annual Report. The Council recorded an accounting surplus of $6.33m for the financial year which equates to a small underlying loss of $0.18m once adjusted for non-cash and abnormal items. Council remains in a sound financial position to meet the challenges of an expanding municipality which requires new infrastructure as well as the need to renew the existing $368m worth of assets it manages. The long term financial plan underpins Council’s financial position and will be challenged by the advent of new development infrastructure requirements. The debt level of $8.47m represents 44% of rate revenue which is well under the prudential limit of 60% and is in line with Council’s debt management strategy. Budgetary control remains strong which was evidenced by positive recurrent financial results. It is a year that will be remembered as one of growth and planning for an exciting future. Construction works in the City totalled $113.7 million and the number of planning applications received increased by 36%. This is a sign of things to come as our City sits on the brink of major expansion. Our population is expected to boom to 50,000 people by the year 2030 and we have started planning for the demands this will place on our City. Council this year developed plans to build new neighbourhoods in our City with around 3,850 blocks of land to be released onto the market in Dennington, North Warrnambool, Hopkins Point Road and north of the Merri in the next 15 years. In Dennington and North Warrnambool alone we will develop neighbourhoods the size of Port Fairy. Our City Centre will have to grow and change to accommodate new retailers and changing needs of our community. Planning for this started with an extensive community consultation campaign around what people want in our City Centre in the future. In the future we will need improved transport links to our City and upgrading our airport has been on the agenda this year. We have started The Warrnambool Regional Airport Feasibility Study to determine the anticipated demands on our airport as multi-national industries set-up in our region. Work also started on a $400,000 upgrade to the terminal building. The expansion of our City will bring with it challenges for our liveability and our environment. This year we have undertaken substantial work to ensure our City remains a great place to live. We carried out improvement works at the Harbour Precinct and put in place plans for a new Harbour Pavilion. The Warrnambool to Port Fairy Rail Trail was started and improvement works to jetties were carried out. We planted 20,000 native trees around our City and started work on our 5 year Environmental Sustainability Strategy. I am also pleased to note that Warrnambool City Council maintained its place among the top ranked councils in Victoria for Community Satisfaction.
Bruce A. Anson Chief Executive
6 Organisation Structure
Council
CHIEF EXECUTIVE Bruce Anson
EXECUTIVE ASSISTANT Wendy Clark
DIRECTOR DIRECTOR DIRECTOR DIRECTOR CORPORATE COMMUNITY CITY INFRASTRUCTURE CITY GROWTH STRATEGIES DEVELOPMENT Neil Allen Bill Millard Peter Brown Paul O’Brien
MANAGER- MANAGER- INFORMATION MANAGER- INFRASTRUCTURE MANAGER- SERVICES COMMUNITY SUPPORT SERVICES BUSINESS SUPPORT Peter Newell Anne Waters Peter Robertson Tanya Egan
MANAGER- MANAGER- MANAGER- MANAGER- CAPITAL WORKS & REVENUE & PROPERTY FAMILY SERVICES TOURISM SERVICES PROJECTS Glendon Dickinson Yvonne Stewart Peter Abbott Rohan McKinnon
MANAGER- MANAGER- MANAGER- MANAGER- FINANCIAL SERVICES RECREATION & HEALTH & LOCAL LAWS STRATEGIC PLANNING Kevin Leddin CULTURE Murray Murfett Lucinda Peterson Russell Lineham
MANAGER- MANAGER- MANAGER- MANAGER- ORGANISATION EVENTS & PROMOTION BUILDING SERVICES PLANNING SERVICES Contracted Position DEVELOPMENT Narelle Allen Matthew Kirby Julie Winzar Peter Keen
MANAGER- MARKETING & MEDIA Kim Sweetnam
7 Location Map
VICTORIA
8 Community Focused Council STRATEGIC OBJECTIVE To provide responsible governance for our City, inclusive of community engagement, effective advocacy, financial sustainability, service excellence and organisational capacity.
HIGHLIGHTS • Unqualified audit report. • Strategic Resource Plan reviewed and updated. • Strong advocacy for the upgrading of the Princes Highway West and South West Healthcare, Warrnambool campus. • Completed the sale of the Fletcher Jones site. • In top 3 Victorian councils for risk management practices and procedures with a score of 94% compared with the State average of 74%. • A comprehensive audit of Council’s Customer Service Charter. • Completion of the 2008 General Revaluation. • Relocation of off-site records facility to Fletcher Jones building and completing of cataloguing archive records. • Council maintains its position relative to councils in Regional Cities Group in the 2008 Community Satisfaction Survey. • Upgrading the media position to a broader media and marketing management role within Council to reflect the importance of Council’s relationships with the community.
9 Good Governance Council Warrnambool City Council derives its role, powers and functions primarily from the Local Government Act 1989. The Act specifies that the primary objective of Council is to achieve the best outcomes for the community having regard to the following objectives: • Promoting social, economic and environmental viability and sustainability. • Ensuring that resources are effectively and efficiently used. • Improving the overall quality of life. • Promoting business and employment opportunities. • Ensuring services and facilities are accessible and equitable. • Ensuring equitable setting of rates. • Ensuring transparency in decision-making. Council is responsible for establishing strategic objectives for the municipality, establishing and guiding policies, setting service standards and for monitoring the organisation’s performance.
Councillors are the elected representatives of the residents and ratepayers within the municipality and provide an essential link between the community and the Council. The broad role of a Councillor is: • To form an effective Council. • Strategic planning for a sustainable future. • Representation on behalf of all residents and ratepayers. • Advocacy on behalf of the community. • Overseeing an effective organisation. • Facilitation on behalf of the community. • Partnership with other levels of government, the private sector and community groups. Councillors are required by legislation to comply with rules of conduct that require Councillors to: a) Act honestly. b) Exercise reasonable care and diligence. c) Not make improper use of their position • To gain, or attempt to gain, directly or indirectly an advantage for themselves or for any other person; or • To cause, or attempt to cause, damage to the Council. OVERALL PERFORMANCE
d) Not make improper use of information acquired 2006 2007 because of their position WCC 2008 • To gain, or attempt to gain, directly or indirectly an
advantage for themselves or for any other person; OTHER COUNCILS or IN GROUP
• To cause, or attempt to cause, damage to the 50 60 70 80 90 100 Council. * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
10 Delegations Councillor Support Most decisions of an operational nature are delegated to The Mayoral allowance for the 2007/08 year the Chief Executive or in certain circumstances directly to a responsible officer. The Chief Executive will usually was $45,000 and the Councillor allowance was delegate certain responsibilities to other Council staff. $15,000. This is to ensure that the operations of the Council are Councillors are also provided with broadband internet carried out in an efficient and effective manner. access or a home telephone line and facsimile machine. The Chief Executive has statutory responsibility for The Mayor is also provided with a vehicle and mobile managing the day-to-day operations of the Council and the telephone. effective use of delegated authority is an essential element of effective management. Decision Making Council Plan Council The Council Plan is the principal strategic planning document of Council and contains details of Council’s There are two ways that Council makes purpose and vision, the Strategic Objectives, a 20 year decisions; by resolution at Council meetings or vision, the principles Council will use in achieving its vision and four year Strategies and Performance special committees or by individual staff under Indicators. The Plan also includes a 4 Year Strategic delegated authority. Resource Plan. Preparation of the Council Plan is a Council’s decision process involves Council and Special comprehensive and complex task that involves the Council meetings which are open to the public and coordination of numerous inputs, including existing plans, Committee of the Whole Council and Audit Committee, Best Value Service Reviews, Councillor and Council staff which deal only with confidential matters. input and community satisfaction surveys. During the year there were 17 Council Meetings, 4 Special In addition to the statutory community engagement Council Meetings, 5 Committee of the Whole Council programs, increased community participation has Meetings and 5 Audit Committee meetings. occurred via neighbourhood plans, advisory committees, weekly groups, forums and submissions on service and Council meets on a three weekly cycle, the Audit project plans. Committee approximately 5 times per annum, with Special Council meetings and Committee of the Whole Council The 2005 - 2009 Plan was prepared in the following meetings as required. Strategic Objective “themes”: • Community Focused Council. Briefing Sessions • Natural & Built Environment. In addition to regular Council meetings, Warrnambool City • Safe & Healthy Community. Council holds briefing sessions where Council officers make presentations to Councillors on policy development • Growing City. and other matters. These sessions provide Councillors and • Responsible Asset Management. Council officers with an opportunity to discuss issues in The Plan includes a Strategic Resource Plan linking detail and allow questions and concerns to be addressed directly to Council’s Annual Budget, including allocation in an open and frank environment. of financial and other resources. In June 2008 Council adopted a new Council Plan 2008-2012 which will guide future decision making.
COUNCIL MEETINGS Ordinary Council Special Council Committee of the Whole Councillor Meetings Attended Meetings Attended Council Meetings Attended
Cr. David Atkinson OAM JP 16 of 17 4 of 4 5 of 5 Cr. Jack Daffy OAM JP 15 of 17 4 of 4 4 of 5 Cr. Jacinta Ermacora 17 of 17 4 of 4 5 of 5 Cr. Andrew Fawcett 17 of 17 4 of 4 5 of 5 Cr. Adrian Jacobs 17 of 17 4 of 4 5 of 5 Cr. Michael Neoh 17 of 17 4 of 4 5 of 5 Cr. Glenys Phillpot 17 of 17 4 of 4 4 of 5 Note: Leave of Absence was granted to Cr. Jack Daffy for the Council Meeting and Committee of the Whole Council Meeting on 8 October 2007. 11 Advocacy Advocacy on behalf of the community is an essential element of the Council’s role. Effective advocacy requires strong understanding of community needs combined with making meaningful presentations on issues of public importance.
Council is a strong advocate on behalf of the community. ADVOCACY A key area of success in advocacy is the State Government’s commitment to the redevelopment of the 2006 2007 Warrnambool campus of South West Healthcare. WCC 2008 Council has also been a strong advocate for the upgrading
of the Princes Highway West. A coalition of 17 councils OTHER COUNCILS from Mt Gambier to Geelong has been active in seeking IN GROUP to have the road recognised as a priority in the Auslink 50 60 70 80 90 100 Program and has achieved State and Federal agreement to extend duplication of the highway to Winchelsea. * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
12 Recreation & Youth Advisory Committee Community Input Cr. Michael Neoh Active community input into the Council Assist with City-wide recreation planning, particularly in decision-making process is an essential relation to Aquazone, Warrnambool Stadium and youth development services. ingredient of good decision-making. A variety of community engagement methods are used to Warrnambool Airport Reference Group seek the input and view of community members, including Cr. Jack Daffy reference groups, focus groups, community meetings, Develop and operate the Warrnambool Airport as the special interest groups and surveys. principal airport serving Warrnambool and Moyne In 2007/08 the following advisory committees were active municipalities. in providing advice to Council. The principle function of the Committees is listed below: Warrnambool Livestock Exchange Reference Group Audit Committee Cr. Andrew Fawcett Cr. Andrew Fawcett, Cr. Jacinta Ermacora Develop the Warrnambool Saleyards as the key saleyards Monitor and review Council’s financial management, in the region and operate it as a viable commercial accountability and internal controls. enterprise to the benefit of the City. Built Environment Advisory Committee Warrnambool (Migrant) Resettlement Cr. Glenys Phillpot Advisory Committee Assist Council’s heritage program relating to the City’s Cr. David Atkinson built environment and land use planning, Heritage Provide advice on and advocate for issues of attracting Restoration Revolving Fund and other key issues relating skilled migrants to Warrnambool. to the quality of the City’s built environment. City Art Advisory Committee Audit Oversight Cr. Andrew Fawcett Audit Committee Assist with the Warrnambool Art Gallery, City public art and Council cultural collections. An effective audit committee is an integral Community Services Advisory Committee component of good government and provides Cr. Michael Neoh an independent overview of Council’s financial Assist with Community services (primarily disability and reporting, risk management and internal older persons services). control procedures. Flagstaff Hill Advisory Committee During the year Council’s Audit Committee comprised of: Mr Rhys Boyle (Chair) Cr. Jack Daffy, Cr. Adrian Jacobs Mr Boyle has a health service background and is the Chief Assist development and operation of the Flagstaff Hill Executive of Lyndoch Warrnambool Inc. Maritime Village complex as a leading practice heritage park. Mr Denis Farley Public Land & Environment Mr Farley is the Finance Manager of Westvic Work Force, being the largest registered training organisation within Advisory Committee South West Victoria. Cr. Adrian Jacobs Mr Peter Dryden Assist with the Warrnambool Foreshore Reserve, public Mr Dryden is a qualified accountant and company auditor lands along the Merri River and Hopkins River within the who operates his own consultancy providing services to City and all parks, gardens and reserves. government, business and education. Cr. Jacinta Ermacora Cr. Andrew Fawcett
13 The key roles and responsibilities of the Audit Committee include reviewing: Media & Marketing • Council’s Standard Statements and Financial Statements prior to approval by Council. Overview The Media and Marketing role supports all media and • Matters arising from the external audit and monitoring Council officers to ensure timely, accurate information action taken. is provided to the community. This is done through • The scope of the internal audit program and the developing relationships with the media, producing effectiveness of the function. press releases, keeping the website updated, monitoring • Reports of the internal audit and monitoring actions Council’s marketing and branding as well as ensuring all taken on recommendations. Council communication is written in simple language. The role also offers advice and support on community The Audit Committee met on 5 occasions during the year engagement. and addressed a range of issues. The Audit Committee provides advice to Council on a wide range of financial risk, At A Glance management systems, reporting and accountability issues. C2C – Council to Community magazine Items considered by the Audit Committee included: Published bi-monthly (13,500 copies per edition) • Review of the Annual Standard Statements and Warrnambool Community Directory Financial Statements. 16,000 delivered/requested • Strategic Resource Plan and Annual Budget. Booletin Board • Audit Management Letter. Published every 3 weeks • Audit Review Recommendations. Noticeboard • Municipal Association of Victoria’s STEP Asset Published weekly Management Program. Key Achievements • Public Liability Risk Management. • Annual Report on Risk. Community Forums • Civic Mutual Plus Risk Audit. Council conducted three community forums during the • Information Technology Controls Review year in August, November and April. The forums provided (November 2007). members of the community the opportunity to meet with Councillors and staff to discuss a wide range of issues. • Review of Infrastructure and Asset Management The agendas for the meetings are driven by items raised by (February 2008). the community prior to or at the meetings.
Internal Auditing Specific Purpose Community Engagement Council has appointed RSM Bird Cameron to provide Council also undertake a wide range of specific purpose internal audit services and to review the processes and community engagements, including planning mediation, controls applied by Council to its administrative and meeting with facility users, presentations to Council by accounting functions. community members and group, and on-site meetings. In addition, an independent review of public liability risk These processes all contribute to ensuring that Council management was undertaken by Civic Mutual Plus. is informed on the community views on a wide range of RSM Bird Cameron, Chartered Accountants, have been issues. appointed by Council as Internal Auditors until July 2009.
External Auditing The Auditor-General of Victoria has appointed Mr Chris Website Kol from Coffey Hunt and Co to undertake the audit of the Annual Standard Statements, Financial Statements and Council’s website is constantly being reviewed and Performance Statement. upgraded to make it relevant to our visitors. Updates are constantly being done to ensure people can have quick, easy access to timely information through our website. Feedback is always welcome, and our flexible approach means we try to accommodate new innovations where appropriate.
14 Customer Service C2C – Council to Community The C2C magazine keeps people informed of what is Overview happening in our vibrant City. Council distributes 13,500 The Customer Service Unit plays an integral role in the copies bi-monthly to Warrnambool residents and the dissemination of information on behalf of all Council magazine is also used to promote our City outside the departments and branches. Working on the ‘One Stop region. Shop’ principle, the Customer Service Team aims to have most queries satisfied at this first contact. Community Directory At A Glance The Warrnambool Community Directory has become a popular and well sourced publication by residents and Customer contacts 91,020 visitors alike. Telephone calls 56,181 The directory is a one-stop-shop of Council and community Counter enquiries 34,839 information as well as containing a list of Warrnambool Customer requests 20,592 clubs and organisation contacts. Key Achievements Media Council has developed a productive and professional Customer Service Charter relationship with the Warrnambool media, which includes As a major initiative and in line with its Business The Standard, WIN News and radio stations 3YB, ABC and Excellence program, a comprehensive audit program of Coast FM. Daily contact is made with these media outlets Council’s Charter was undertaken in order to measure staff through the Manager Media & Marketing who assists with compliance with the promises listed within the Charter. the media inquiries and interviews. Emphasis has been The Charter lists 12 commitments that make up placed on response times and this has led to a productive the benchmark service deliverables for the staff at and improved relationship between media and Council. Warrnambool City Council. As well as typical surveying, Council understands the importance and the value of the the audit program included the use of mystery shoppers. local media in delivering its messages to the community This enables Council to capture the complexities of service and is committed to continuing good relations and provision that would otherwise be difficult to measure. assisting the media on Council-related matters. The Future Indicators Aims COMMUNITY ENGAGEMENT • Regular accessible training for all Council staff in respect of the Customer Request System to ensure 2006 compliance with service standards. 2007 WCC 2008 • Provide a more effective ‘One Stop Shop’ within the Customer Service Unit through the provision of inter-
OTHER COUNCILS departmental/branch training. IN GROUP Challenges 50 60 70 80 90 100 • Develop a more confidential environment for dealing
* SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 with customer contacts.
WEBSITE - UNIQUE VISITORS Indicator 12,000 CUSTOMER CONTACT 10,000 2006 8,000 2007 6,000 WCC 2008
4,000
2,000 OTHER COUNCILS IN GROUP 0 JUNE JUNE JUNE JUNE JUNE ‘04 ‘05 ‘06 ‘07 ‘08 50 60 70 80 90 100
SOURCE: WEB BROWSER COUNTER, WCC WEBSITE * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
15 Revenue & Property Overview The Revenue and Property Branch encompasses collection of Council revenue, property valuations and maintaining a strategically focussed property management system. This ensures consistency in debt management and accurate and timely property-based information for strategic planning purposes. At A Glance Rateable assessments 15,012 Supplementary valuations 1,051 Pensioner concession verification 2,922 Land Information Certificates 1,416 Notices of Acquisition/Disposition 1,255 Key Achievements General Revaluation The past 12 months have seen the completion of the 2008 General Revaluation of the entire municipality. In addition, and as a result of the continued strong growth in property development, a record number of supplementary revaluations were undertaken resulting in an all time high in supplementary rate income. Council’s rateable properties during this past year reached and passed 15,000 assessments.
Property Information Project The branch continues to focus heavily on the Property Information Project (‘PIP’). PIP is a collaboration between State and Local Government to establish a Statewide system of property data exchange. This will ensure the State’s digital map base (Vicmap) is accurate and available for key public and private sector users.
The Future Aims • Ensure ongoing responsible stewardship of community assets through the application of rental pricing philosophies that meet community expectations in respect of fair return for the use of Council land. • Active participation in the Valuer General Victoria’s review of Valuation Best Practice to ensure the protection of Council’s property data asset. Challenges • Establishment of revenue strategies to ensure that the fee/charge for use of services is balanced between social and economic considerations. • Developing an online payment system for all Council services.
16 Organisation Development Overview The Organisation Development Branch encompasses the Risk Management, Human Resources and Training units. The branch delivers business services to internal Council branches and works with external stakeholders to enhance Council’s reputation and fulfill obligations. At A Glance Public Liability Audit score 94% (74% State average) Employment vacancies filled 96 Employment enquires 2,000 Career Opportunities for Young People Employment applications 950 Each year Council works with secondary schools, Training program participants 1,366 South West TAFE and Deakin University to ensure that Traineeship participants 35 young people are aware of the career opportunities with Council. Promotional activities undertaken have included Aspiring Leadership program participants 24 tours of the Council facilities, participation a range of Key Achievements regional careers expos, work experience programs, university practical placements and research projects Human Resources with Deakin graduate students. Council also hosts a range of job creation and employment Employment programs where participants gain valuable work skills Recruitment and retention are key issues for Council. With while completing projects that assist the Warrnambool ageing demographics and a tightening in the employment community. market, Council is taking a proactive approach to selection, recruitment and retention activities. Initiatives include Traineeships & Apprentices opportunities for cadetships, graduate employment Council has had 35 staff participate in traineeships programs, flexible work arrangements and salary in a range of areas including Childcare, Business packaging. Council also offers existing staff more choice in Administration, Information Technology, Tourism, relation to training and career development. Horticulture, Human Resources and Motor Mechanics.
STAFF NUMBERS FULL TIME PART TIME CASUAL NO. EQUIVALENT FEMALE MALE FEMALE MALE FEMALE MALE EMPLOYED FULL TIME EXECUTIVE SERVICES 1 1 0 0 0 0 2 2
CORPORATE STRATEGIES 13 14 13 4 6 0 50 37
INFRASTRUCTURE SERVICES 8 72 23 11 3 3 120 91
COMMUNITY DEVELOPMENT 50 14 0 106 21 76 279 149
CITY GROWTH 7 13 14 8 7 3 52 33 TOTALS 79 114 50 129 37 82 503 312
17 Employer of Choice Risk Management Council completed negotiations for the next collective The need for better management of risks is becoming Enterprise Agreement. The agreement addresses issues increasingly important today. Council has recognised relating to work/life balance, family friendly provisions and this need and responded by introducing a broad range competitive salaries while setting targets for improved of initiatives to enhance the culture of organisation and levels of customer service and responsiveness. community risk awareness and management. These risk management initiatives are driven by Council’s Audit Compliance Training Committee, Management Executive Group and the Risk As part of the Council’s ongoing commitment to legislative Management Committee. compliance, a range of training programs were delivered During 2007/08 Council’s Risk Management Policy and across all divisions of Council. These courses included Strategy were revised and relevant procedures were Privacy, Equal Employment Opportunity and Human developed. The enhanced Strategy and processes are Rights. based on the major areas of risk as indicated in the annual Civic Mutual Plus (CMP) Public Liability Assessment. Any Commitment to the Development of New identified risks are registered into Council’s Risk Register Organisational Leaders to ensure the organisation can identify, assess, treat Recognition and development of emerging leaders is a key and monitor identified risks. Sections in the risk register focus for Council. In 2007/08 Council again took part in include OH&S, fraud, financial, business continuity and the Local Government Managers of Australia Management reputation. Challenge held in Melbourne. The team achieved Council’s Occupational Health and Safety Policy and commendable results in the Victorian section processes were also reviewed to ensure their compliance of the challenge. with current legislation. Induction and Manual Handling Council also conducted an Aspiring Leadership Program Injury Prevention training was also conducted for each with 13 emerging leaders commencing study in Certificate new staff member. Council has recently introduced IV in Government and Frontline Management. A further Ergonomic Workplace Assessments to further minimise 11 staff commenced study in an Advanced Diploma in workplace injury. Business Management. Occupational Health & Safety Training & Development (OH&S) Committee A key outcome for Council is to develop and retain staff The Occupational Health and Safety Committee, consisting and encourage innovative practices. To assist in the of staff and management representatives, meet bi-monthly achievement of this goal, Council offers a large selection of to discuss OH&S within their Council workplaces. During corporate training and development opportunities to staff 2007/08, committee members undertook the 5 day members. OH&S Representative’s Courses, and an OH&S Law and Responsibilities Awareness Workshop. The Committee In addition to the corporate training programs, most also enhances organisational First Aid coverage by Council departments also operate a range of industry- assigning designated First Aid Officers at each worksite. specific training courses. Council also supports a number These First Aid Officers are provided with Level 2 First Aid of individual staff members to undertake external degrees, training with ongoing training annually. The Committee post graduate qualifications and TAFE certificates which all will begin working on revising Council’s existing OH&S lead to increased staff competence and capacity. procedures manual in the near future. STAFF RECOGNITION AWARDS
Years 30 Phillip Doukas Leon Lenehan 25 Gary Shawyer Brian Mustard Jill McLeod 20 Bruce Anson Anthony Hamilton Mary Chenoweth 15 Albert Lewis Heather Love Barbara Kelly Patrick Medley Judith O’Keefe 10 Gary Neill Shelley Elliott Mark Rixon Trevor White Anne Waters Robert Brownlaw Margaret Lane Yvonne McGinness Lorraine McNaughton 5 Margaret Dillon Brenda O’Connor Linda Jennings Tania Cugley Jenny Plozza Richard Stone Valerie Attrill Svetlana Lineham Anne Hulands Dean Berger Robyn Bowen Alecia Bidman Julie Wilson Carol Conn Patricia Foreman Cheryl McKinnon Sarah McKean Lynette McKenzie
18 Training Insurance Premiums To ensure compliance and staff awareness, Council Council is covered by a broad range of insurance policies conducted an extensive range of training during the past which are reviewed annually. Council’s liability insurer 12 months which included the following: CMP uses the Public Liability Assessment scores to determine Council’s annual premium. Council’s superior Participant Training Title scores have resulted in Council receiving a significant Numbers reduction in its insurance premiums for 2008/09. This is Manual Handling Injury 85 the fourth consecutive year that Council has received a net Prevention Training decrease in premium. Confined Space Training 12 Spotter Training (Traffic Management) 25 Claims Management First Aid Training 62 Solid risk management procedures coupled with OH&S 5 Day (Representatives) 4 compliance against the Road Management Act continues OH&S Law & Responsibilities/ to ensure Council’s ability to defend future claims. 71 Hazard Identification Red Card Training The Future 62 (Construction Site OH&S) Aims
• Develop a workforce planning strategy. CMP Public Liability Assessment • Introduce Business Excellence Continuous Each year Council is audited on areas considered Improvement Program. high risk by our public liability insurers. These risks • Further embed of risk management strategies. include organisational risk management, road reserves, recreational reserves, food safety, working with children • Continue to enhance the corporate training program. and planning and building functions. • Introduce new initiatives to further enhance the image Warrnambool City Council has greatly improved its and reputation of Council as an ‘Employer of Choice’. performance over the past 6 years. This year Council was • Continue to enhance organisational development with named third in the State with a score of 94%, compared to a range of corporate policies and procedures. the State average of 74%. Challenges PUBLIC LIABILITY RISK RANKING • Adapting to the tightening labour market.
100% WCC • Developing in-house skills to minimise staff skill 90% All Council’s Average shortages. 80% 70% • Finding innovative ways to attract and retain staff. 60% • Undertaking workforce planning and succession 50% 40% planning. 30% • Adopting Continuous Improvement initiatives and 20% practices. 10% 0% 2002 2003 2004 2005 2006 2007 2008 19 Records Unit Information Services The Records Unit has continued to process and manage Overview Council’s records system including scanning of all incoming mail, electronic management of emails and The Information Services Branch facilitates the collection, facsimiles. protection and dissemination of information required for the smooth operation of Council services. The branch A major project has been the relocation of all Council’s manages the hardware and software, and coordinates off-site records to the Fletcher Jones building and the appropriate training, documentation, procedures and cataloguing of all archival records which have been stored policies to meet Council’s information technology in 2,400 archive boxes. requirements. The Records Unit processed: At A Glance • Paper mail 184,000 Locations supported 23 • Email 280,000 Desktop and notebook computers 220 • Facsimile 6,800 Servers 13 The Records Unit manages: Software applications supported 75 • Active electronic documents 111,000 Internal Customer Requests actioned 1,427 • Property files 16,975 New staff registered and inducted 90 • Archive boxes 2,400 Key Achievements The Future Aims Information Services • Commence implementation of 5 year Information Throughout the year the branch has undertaken and Technology Strategic Plan. investigated many changes and upgrades to Council’s • Implementation of Voice Over IP (VOIP) Telephony. information and communication systems. • Increase number of services available on-line. System upgrades have included the wireless wide area computer network which increased data speeds and • Examine information technology shared services with the productivity of “remote” offices along with selected neighbouring councils. functions being migrated to Personal Digital Assistants. Challenges To date email and calendar, animal registrations, asset • Provide expected service levels to existing staff. inspections and infringement have been migrated. Throughout the year, 90 new staff have been allocated Indicators both hardware and software, and undertaken Council’s Computers per Information Technology staff 58.25 induction process. The induction process now includes Information Technology, Records Management and Internal Customer Requests actioned per year 1,427 Ergonomic Assessment. An analysis has been undertaken of Council’s telecommunications usage and an investigation is currently underway relating to new communications technologies. Due to an organisation restructure and building refurbishment, the branch relocated information technology for 70 staff.
Going Green Information Technology has implemented several ‘green’ initiatives. All printers capable of printing double sided have been set to do so by default. All computers have been set to go to power save mode and turn off the monitor if unused for 15 minutes.
20 Natural & Built Environment STRATEGIC OBJECTIVE To facilitate the planned development of our City, achieving high standards of amenity and environmental sustainability. HIGHLIGHTS • Maintaining the planning decision rate of previous years. • Adoption of the North East Warrnambool Growth Area Structure Plan. • 391 planning application were submitted to Council with 9 reviewed at the Victorian Civil and Administrative Tribunal (2.3% compared to the State average of 7%). • 2 of the 9 applications reviewed at the Victorian Civil and Administrative Tribunal were found against the Council decision. • Increase of 53% in domestic building permits issued by Council. • Increase of 10% in the value of building permits. • Creating dedicated position of Environmental Planner to provide leadership and strategic direction in environmental sustainability principles. • Miura Friendship Gardens completed at a cost of $93,000. • Installation of water tanks at Council’s works depot and the Warrnambool Stadium. • Continuing to plant 15,000 trees as part of Council’s environmental responsibilities. • Purchased a total of 20% green power. • $175,000 invested in new playground equipment installed at Natalie Court/ Chisholm Court, Lake Pertobe, Balmoral Road and Heritage Court. • Successfully obtaining a grant in conjunction with the Friends of the Botanic Gardens, to assist with upgrading of the fernery. • Introducing a waste collection in the rural areas of the municipality. • Increasing the amount of recyclables collected by 480 tonnes. • Continuing Council’s trend of being in the top 3 percentile of recycling waste in Victoria.
21 Planning Services Overview The Planning Services Branch provides services in relation to the statutory implementation of the Warrnambool Planning Scheme. The branch determines planning permits for land use development and follows up with compliance and enforcement. An important function is provision of planning advice and information including land information certificates. The branch is also responsible for maintaining and amending the Warrnambool Planning Scheme and processing new subdivisions. The Heritage Advisory Service also provides important information to developers and ratepayers. At A Glance Planning applications received 391 (36% increase over 2006/07) Planning applications determined 404 (75% increase over 2006/07) Determination rate 84% (65% in 2006/07 and 69% Regional Avg.) Key Achievements The Future Aims Performance • Establish a performance framework to measure Despite the significant increase in demand for planning continuous improvement. permits, the overall processing of permits maintained a consistent level of output. • Achieve application processing performance consistently above the Regional average for all Subdivisions measured areas. The branch started using and developing electronic • Increase responsive structure to deliver improved and subdivision registration and processing. This will be timely services to customers. further expanded with the use of SPEAR which will allow electronic lodgement and referral of plans. This will Challenges eliminate the need for paper versions, speeding up the process and reducing administrative workload. • Quality internal systems particularly where decisions involve other units in the organisation. Heritage • Recruitment of planning professionals. The Heritage Advisory Service continues to be fully booked • Review of the Planning Scheme. almost every fortnight the service is provided.
Planning Scheme Amendments TOWN PLANNING & POLICY APPROVALS A number of Planning Scheme amendments commenced in relation to the implementation of the various growth 2006 2007 structure plans and the Retail Strategy. The Planning WCC 2008 Scheme amendment process has been formalised as a separate service delivery component of the branch distinct OTHER COUNCILS from projects. This has enabled improved development of IN GROUP amendments to better reflect Planning Scheme outcomes and led to quicker amendments to correct or improve 50 60 70 80 90 100 identified issues. * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
22 Building Services Overview The Building Services Branch is a joint shared arrangement between Warrnambool City Council and Moyne Shire Council to provide a seamless service to customers across the two municipalities. At A Glance Building permits issued 121 Customer requests 68 Information requests 1,766 Building permits issued by Council and the industry are:
WORKS IN THE COUNCIL ISSUED 2007 / 2008 2006 / 2007 2007 / 2008 2006 / 2007 MUNICIPALITY PERMITS Type of No. $ Value No. $ Value Type of No. $ Value No. $ Value Construction Construction Domestic 458 58,218,000 494 56,118,000 Domestic 92 3,198,088 60 2,400,509 Residential 4 121,000 11 13,294,000 Residential 15 268,661 11 35,000 Commercial 40 8,045,000 57 16,306,000 Commercial 3 103,000 7 236,500 Retail 43 19,302,000 30 12,916,000 Retail 2 115,000 - - Industrial 18 2,914,000 11 1,038,000 Industrial - - - - Hospital / Hospital / 10 6,731,000 7 178,000 ---- Healthcare Healthcare Public Buildings 35 18,390,000 19 4,376 Public Buildings 9 1,113,367 2 20,800 TOTAL 635 113,720,000 629 104,225,000 Ancillary 10 71,660 TOTAL 121 4,798,116 80 104,225,000 Key Achievements Building Permits Council has seen an increase in the building permits issued from 80 in 2006/07 to 121 in 2007/08. Council is now issuing 20% of the permits in the Warrnambool City and Moyne Shire and providing an important alternative service to both municipalities. The total value of building permits issued in the City over the last 12 months has increased by a further 10% reflecting the sustained growth of the municipality. The cost recovery of the Building Service to Council continues to improve. In 2007/08 the net cost to Council for provision of the Building Service decreased from the Budget allocation of $40,000 to an actual cost of $23,000.
The Future Aims Challenges • Increase regional role in providing advice and guidance • Continue working with the Building Commission to on strategic building. address the continued shortage of skilled professional • Employ a cadet building surveyor to assist with building practitioners qualified as municipal building increasing work loads. surveyors. • Develop and manage essential services within • Reassess and review service levels to ensure that Council’s buildings to meet the legislative changes to customer service is maintained in relation to significant be introduced mid 2009. growth in commercial development. • Ensure pool fences are compliant by creating a • Increase training and qualifications of building staff to swimming pool register and undertaking random provide a greater level of assessment of energy efficient checks to ensure that barriers are maintained. buildings.
23 Natural Environment Overview Council aims to protect and enhance biodiversity by minimising impact on the environment. Council undertakes a range of natural environment key initiatives across various branches and works in partnership with other government departments, schools and community groups to raise the awareness of environmental issues which often involves leading by example through programs and projects conducted by the Warrnambool City Council. At A Glance Trees planted 15,000 Water tanks fitted 5 Green power purchased 20% Energy efficient vehicles purchased 1 Key Achievements Cities for Climate Protection Council has continued with its Cities for Climate Protection program and currently is at ‘Milestone 5 Plus’, which is the upper level of achievement in greenhouse abatement initiatives under the Cities for Climate Protection program. This program is an ongoing commitment to Council’s environmental program and the reduction of greenhouse gas emission. Council is a leading regional council in showing environmental initiatives at this level. Key initiatives include: • Purchase of a Prius and conversion of several vehicles to gas. • Purchase of 20% green power through electricity contracts, which increased from 10%. • Purchase of energy efficient office equipment. • Continuing energy efficient lighting installation in Council buildings on an ongoing basis. • Conducting an energy audit for the Art Gallery and Civic Centre, which will assist in introducing future energy efficiencies. • Purchase of an electric bike to use around the City which reduces the demand on the vehicle fleet. • Continuing implementation of the TravelSmart and Walking School Bus programs to educate students on the importance of the environment.
Environment Committee Council’s internal Environment Committee has set key challenges including introducing energy saving measures across Council, introducing a Bokashi Bin in the offices to minimise food waste reaching landfill and working with Fun4Kids to conduct a carbon audit. The audit will assist Council to undertake future festivals based on sound environmental sustainability principles. Council has committed to the Eco-buy program which is a program that commits Council to green purchasing.
Work for the Dole Council continues to work in partnership with the Federal Government and the community on its Work for the Dole program which provides significant environmental benefits through revegetation, fencing, pest, plant and animal control and general beach access maintenance. This program also provides valuable skills to unemployed people who, with the aid of Council training, are able to find suitable employment within other areas of the workforce.
24 Tree Planting & Revegetation The Future Council continues to plant trees as part of its Aims environmental responsibilities and to date has planted • Continue the commitment to the environment to save approximately 15,000 trees with the assistance of energy, reduce waste and work more efficiently. government funded programs and community groups. Major revegetation works were undertaken at numerous Challenges areas throughout the City including Russells Creek, Merri • Climate change is expected to result in long term rises River, Albert Park and the foreshore area. in sea levels which will impact on the sensitive coastal environments and change the way the community lives, Water Sustainability works and plays on the coast. Council received funding to improve stormwater related • Balancing the maintenance and enhancement of the infrastructure. Installation of water tanks were fitted at natural environment with the future development and Council’s works depot to assist with the provision of water use of open spaces and coastal reserves. for road making and parks and gardens activities. Tanks • Continue to review transportation needs and fleet were also installed at the Warrnambool Stadium to assist operations to ensure that Council is operating with provision of water to the Warrnambool Livestock sustainable transport networks and complying Exchange. with best practice for greenhouse and environment Council is continuing to improve the water supply management. infrastructure with efficient water equipment fittings.
25 26 Parks & Gardens Overview The Parks & Gardens Unit is responsible for more than 200 parks, gardens, playgrounds and foreshore reserves varying in size throughout the City. The Lake Pertobe foreshore reserve is a major attraction for visitors from outside the City and the vast area of public open space requires an estimated 90% of works dedicated to maintenance. At A Glance Plant & Equipment Maintenance of ovals and reserves $416,000 Council purchased a chipper which reduced the green New playground equipment installed 4 waste cost of $80,000 per year and also provides a valuable source of woodchips and mulch for use in the Council Maintain playgrounds 55 garden beds. Maintain ovals 14 The Future Maintain street roundabouts 40 Aims Key Achievements • Continue to provide open space for passive and recreational purposes to meet the needs of the Botanic Gardens community. In conjunction with the Friends of the Botanic Gardens • Increasing emphasis on environmental considerations Council have developed a long term management plan and the needs of the community will require Council to to maintain the gardens historic trees and garden beds. maintain its high standards of parks and open spaces. Council was also successful in obtaining a grant in conjunction with the Friends of the Botanical Gardens, to Challenges assist with the upgrading of the fernery within the Botanic • Demand for increased open space such as walking Gardens. corridors and environmental wetlands due to developing growth corridors. Sporting Ovals & Reserves • Developing a balance between the various community Sporting ovals and reserves are a major part of the health and recreational needs against the ability to fund the and recreation needs for Warrnambool residents and works. Council invests approximately $416,000 towards the • Continue to maintain high Community Satisfaction maintenance of the ovals and reserves. Council continues Survey results as the City develops and builds more to work towards improving the playing surfaces and the parks infrastructure. overall amenity of Council’s recreation reserves.
Playgrounds APPEARANCE OF PUBLIC AREAS
Council has 55 playgrounds located throughout the City, 2006 2007 with $175,000 invested in new playground equipment WCC 2008 installed at Natalie Court/Chisholm Court, Lake Pertobe, Balmoral Road and Heritage Court. OTHER COUNCILS Miura Friendship Gardens IN GROUP The Miura Friendship Gardens were completed at a cost 50 60 70 80 90 100 of $93,000. The works included extensive landscaping of * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 the area and planting with a range of groundcover, grasses and trees complimented with mulching. A combination of varying hard surfaced areas exists within the Garden.
27 Waste Management Overview The Future The Waste Management Unit manages the waste and Aims recycling contract for the collection of garbage and • Investigate a green and hard waste collection for the recyclables, and delivery of education initiatives to promote municipality. recycling opportunities and waste minimisation. • Focus on education and marketing. At A Glance • A fleet able to use biodiesel. Garbage collection 5,830 tonnes • Provide a 20% increased recycle capacity and smarter Recycling collection 5,052 tonnes material recovery. Garbage tenements 13,171 • Provide a 30% waste diversion from landfill supported Recycling tenements 13,069 by a number of recycling measures. • Undertake the Mobile Muster, Garden Waste Centre, Key Achievements DETOX days, workshops on composting and worm farms. Kerbside Collection Contract Challenges Council continued with the successful waste and • Provide a 20% waste reduction per tenement each year. recyclables kerbside collection contract based on an 80 litre garbage bin collected weekly and a 240 litre recycling • Reduce litter in our waterways. bin collected fortnightly. In response to community • Incorporate and implement the recommendations in requests the garbage and recycle service was extended the Regional Waste Management Plan. into rural areas and is working well. • Ensure Council’s long term waste management is A green waste and hard rubbish collection service will be environmentally responsible and leads the region in researched in the coming year. compliance with climate change principals. Recycling Collection • Investigate a Resource Recovery Facility in the region with the Regional Waste Management Group. The amount of recyclables collected during the reporting period increased by 480 tonnes, most likely due to a corresponding increase in population during this period WASTE MANAGEMENT
and the community’s changing attitude to the environment 2006 and improvements in recycling behavior. 2007 WCC 2008 A kerbside garbage collection tonnage has increased slightly over the last 12 months due to growth from OTHER COUNCILS new development, increasing from 5,391 tonnes to IN GROUP 5,829 tonnes. The static garbage collection is offset by significant increases in recycling as the Warrnambool 50 60 70 80 90 100 community embraces environmental benefits of recycling. * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
Quantity Quantity Description 2006 / 2007 2007 / 2008 Tenements using kerbside garbage collection service. 12,490 13,171 State average for tenements using kerbside garbage collection services. 474 kg/yr Not yet available
Warrnambool average for tenements using kerbside garbage service. 431.7 kg/yr 442.6 Total weight of garbage collected in Warrnambool by kerbside garbage 5,391.9 tonne/yr 5,829.8 collection. Tenements using recycling service. 12,391 13,069 State average for tenements using recycling service. 271 kg/yr Not yet available Warrnambool average for tenements using recycling service. 369.1 kg/yr 386.6 Total weight of recyclables collected in Warrnambool by kerbside 4,573.3 tonne/yr 5,052.82 recycling collection.
28 Safe & Healthy Community STRATEGIC OBJECTIVE To provide a broad range of health, recreational, cultural and social support services and facilities to a community that is growing in numbers and diversity. HIGHLIGHTS • Public Art and Cultural Materials Management Plan completed and endorsed by Council. • Loch Ard Heron, acquired in partnership with local philanthropic trusts and a significant private donation, is on exhibition at the Art Gallery. • Warrnambool Entertainment Centre performances events and conferences were attended by 139,000 people. • Circulation of library items up by 8.3%, the largest increase in 5 years. • Community Development Fund provided $58,000 of funding to 34 local clubs and organisations. • Hardwired Youth Event attended by 1,300 young people. • Wealthy & Wise Communities Program received the 2007 Consumer Affairs Victoria Regional Consumer Champion Award. • Upgrade of the Archie Graham Community Kitchen. • Development of the Warrnambool Active Ageing Plan 2008 – 2013. • Development of a Scooter Recharge Program and Welcome Business Program. • Attraction of 46 skilled migrants to fill 29 skill vacancies. • State Early Years Award received for the Language Services Project developed in partnership with the Sudanese community. • Family Day Care accomplished 100% Quality Assurance through an external ‘on the spot’ compliance check by the Federal Government. • Kindergarten enrolments of Indigenous children have increased with the support of the Indigenous Education Strategic Initiatives Program. • Immunisation rate of 97%, above the regional, State and National figures. • 500 participants collecting 10 cubic metres of litter and rubbish on Clean Up Day.
29 Recreation & Culture Overview The Recreation & Culture Branch provides many of the key services that contribute towards Warrnambool’s liveability. It provides major facilities for indoor sport and recreation at AquaZone and the Warrnambool Stadium, and for visual and performing arts at the Art Gallery and the Warrnambool Entertainment Centre. A number of important and diverse programs are provided including After School Care, gymnastics, youth leadership and events, cultural education, Learn to Swim, community funding, and developmental assistance to local clubs and organisations. Council is also a member of the Corangamite Regional Library Corporation that provides library services to the City. At A Glance Young people attending Freeza events 1,910 AquaZone attendances 205,759 Warrnambool Stadium attendances 68,335 Warrnambool Entertainment Centre productions 161 Art Gallery exhibitions 31 Items borrowed from the Warrnambool Library 229,011 Casual hire requests for use of Council sports grounds 78 30 Key Achievements The Future Aims Warrnambool Recreation Plan 2007-2017 • Confirm the new Art Gallery Foundation. The Warrnambool Recreation Plan 2007-2017 was endorsed by Council in January 2008. The Plan provides • Complete the review of the Art Gallery’s Collection Council and the community with a strategic direction in policy. relation to the development and provision of recreation • AquaZone to focus on member retention with and sporting opportunities for the next 10 years. The Plan competitors continuing to enter the health and was funded by Council and the Department of Planning fitness market. and Community Development. Council’s 2008/09 Budget • Completion of the Spin Studio project to provide a incorporates initiatives to support implementation of purpose-built home and free up space in the crèche. priorities identified in the Plan. • Investigation into issues associated with ageing Gymnastics Relocation infrastructure and water loss at AquaZone’s outdoor pool. A new home has been secured for the gymnastics program. Following Council’s decision to close and • Funding for education programs at the Art Gallery demolish the Queens Road Stadium, the opportunity was and Warrnambool Entertainment Centre. identified, in consultation with Springers Gymnastics Club, • Continue to work towards implementation of priorities to relocate the program to the Arts and Crafts Pavilion at from the Warrnambool Recreation Plan 2007-2017. the showgrounds. Council allocated $115,000 to develop • Complete the review of the policy for user fees and facilities to accommodate the program at the Pavilion. charges at Council sports grounds. Work on this project, undertaken in conjunction with students from the Australian Technical College, is nearing • Implement the second stage of the Our PlaYce completion. program. • Seek funding to support implementation of Our PlaYce AquaZone youth projects. AquaZone achieved outstanding growth in its Learn to • Investigate opportunities to develop a Rural and Urban Swim program due to excellent service delivery, combined Youth Link Program. with the introduction of a monthly direct debit membership with a free swim option and semester enrolments. Total • Develop an online Youth Services Directory. enrolments for the year were above 2,650, a 17% increase Challenges from the previous year. • Project planning and confirmation of funding sources, Warrnambool Entertainment Centre for redevelopment of the Warrnambool Entertainment Centre. The Entertainment Centre’s new education program presented a wide range of quality performance and • Undertake a review of the library service in 2008/09 education events including Melbourne Symphony using Best Value principles to look at the long-term Orchestra Schools Program, Possum Magic and My improvement of the service in Warrnambool. Grandma Lived in Gooligulch. The program has greatly • Develop an achievable and affordable improvement facilitated communication between the centre and project for improved netball facilities at Reid Oval. schools, resulting in higher levels of participation from students in performing arts programs. Indicators RECREATION FACILITIES Recreation Facilities 2006 Council completed 10 redevelopment or renewal projects 2007 at local sportsgrounds and recreation facilities. Nearly WCC 2008 all of the projects included partnerships with various
State Government departments and local clubs and OTHER COUNCILS organisations. IN GROUP
The projects included the South Warrnambool Football 50 60 70 80 90 100 Netball Clubrooms, Bushfield Recreation Reserve, * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 Russells Creek Trail, West Warrnambool Neighbourhood playground, South Rovers Football Netball changerooms, Warrnambool Rangers Football Club training facilities, Otway Road Scout Hall playground, Dennington Bowls Club and Allansford Recreation Reserve. Total cost of the works was approximately $405,000, with $186,000 funding from the State Government, $135,000 from Council and $84,000 contributed by the local clubs and organisations. 31 Council developed the 2007-08 Community Access Community Support Plan with actions outlined to progressively implement improvements in awareness, communication, services and Overview public access for people with a disability and people with The Community Development Branch plans and delivers universal access needs. a broad range of community care service options to meet An example is the Scooter Recharge Program developed the emerging growth needs of Warrnambool and the in partnership with 18 businesses throughout the region region. The branch attracts project funding and resources who have provided mobility scooter/electric wheelchair to allow innovation and builds strategic partnerships with recharge sites, with 5 sites in Warrnambool. the community, public and private sectors and government agencies to enhance the depth and quality of existing Volunteering community programs. To strengthen community involvement in public and civic life, Volunteers@Warrnambool Resource Centre At A Glance has provided a range of assistance to individuals and the Community care services community on volunteer matters. hours provided 105,957 • Interviews and registration of 1,187 volunteers. Meals on Wheels delivered 35,555 • 95% of registrations referred to volunteer positions. Residents provided • 71% uptake in volunteer positions. with community care support 2,796 National Volunteers Week – Carers provided with carer “Volunteers Change the South West” respite options 1,132 A highlight was Volunteer Tours that offered prospective Archie Graham volunteers a ‘behind the scenes’ view of volunteer roles in Community Centre users 40,000 childcare, community care, heritage, arts and culture. Community inclusion Volunteer Expos were held with existing volunteers project participants 3,600 and volunteer organisations were on hand to chat to Settlement of culturally diverse people 92 perspective volunteers. An active display was held on the Civic Green Key Achievements showcasing the volunteer opportunities available in Positive Ageing emergency services including the SES, CFA, Warrnambool Coast Guard, Warrnambool Coastcare/Landcare Group and Council is committed to a healthy lifestyle and quality Warrnambool Fish Care. of life for all its residents. To ensure that opportunities A ‘thank you’ high tea for community volunteers through are available for older residents to maximise their quality Council was held with staff utilising corporate volunteering of life, Council has developed the Warrnambool Active time to act as hosts. Entertainment was provided by a Ageing Plan 2008–2013. The Plan has been developed group of indigenous musicians and dancers. through extensive consultation with residents, learnings from the Positive Ageing Project and outcomes from Two community research projects were undertaken Archie Graham Community Centre programs. in consultation with the local community on youth participation in volunteering and how to utilise the skills Cultural Diversity and experience of older people. Council has welcomed the increased cultural diversity of the community through successful attraction and retention The Future of refugees and migrants to strengthen economic and Aims social outcomes for Warrnambool and the region. • Implementation of Active Ageing Plan 2008-2013 Council has successfully implemented the Regional Skill recommendations. Migration Strategy that attracted 46 skilled migrants from • Develop a Community Access Plan 2009–2011. 19 different ethnic backgrounds, to fill 29 skill vacancies. • Introduce the Active Service Model. Access & Inclusion Challenges Council is committed to increasing equitable access to public and community services, information and facilities, • Develop a community information hub. through inclusive planning and partnership arrangements. Indicators Council has implemented actions to ensure that services • Quality of Life 79.4 compared to 78.2 for Victoria. provided are responsive and inclusive of the needs of people from a culturally and linguistic diverse background. • Feeling Part of the Community 77.8 compared to 75 for This includes improved access to public transport through Victoria. the Transport Connections Project (TCP). • Social Support 95.4 compared to 94.6 Barwon Region. http://www.communityindicators.net.au/wellbeing_reports/warrnambool 32 Family Services Overview The Family Services Branch provides a wide range of services including Maternal and Child Health, Family Day Care, Centre Based Child Care, Kindergarten, Specialist Programs and Family Support Services that cater for the education, development, health, safety and wellbeing of children 0-6 years of age. At A Glance Children accessing children’s services 1,800 Birth Notifications 421 Children accessed Centre Based Child Care 615 Average hours of Family Day Care provided monthly 16,400 Children enrolled at kindergarten 410 Children with high needs accessing services 160
33 Key Achievements
Children’s Services Centre Swan Reserve Challenges Continuing development of the Children’s Hub has • Participation in the Early Years Educational Framework. encouraged flexibility in the delivery of information and • Coordination of National and State Accreditation services to meet the needs of children and families at a systems across Maternal and Child Health, Childcare, central location. Child health nurses, child care workers, Family Day Care, Kindergartens and Specialist Early kindergarten teachers and specialist practitioners have Years programs. worked closely together to provide the best outcomes for children. • Development of the 2009-2013 Municipal Early Years Strategic Plan. Child First • Continue to develop the Children’s Services Centre as The roll out of new State Government legislation has set a vibrant regional hub that provides information and out principles and guidelines to improve and respond to support regarding early childhood services activities the most vulnerable children in our community. Council’s and programs. Family Services has entered into an alliance with local • Strengthen partnerships and networks to respond to agencies to address the growing numbers of high risk the health, safety and well being of vulnerable families families with the delivery of intensive support programs in Warrnambool and district. and services. Indicators Municipal Early Years Plan • 100% compliance with the Regional Early Years Inclusion Support Contract that assists children with 95% of continuous improvement activities and initiatives disabilities and children from culturally and linguistic have been implemented in Council’s four year Municipal diverse backgrounds access childcare services. Early Years Strategic Plan. • Funding and service agreement Quality Indicator Welcoming Environments Checklist (PQAC) complianne with all 7 kindergartens. Successful minor capital government grants together with • NCAC and QIAS National Standards and Quality parent committee fundraising activities have resulted in Improvement systems for Family Day Care Service, many visual improvements to Council’s 3 childcare centres Florence Collins, Matron Swinton and Sherwood Park and 7 kindergartens. Staff and families have worked closely Child Care Centres recognised and accredited for together to ensure that all centres are of high standard, 2007/08. welcoming and inclusive. HEALTH & HUMAN SERVICES Family Day Care providers have achieved recognition for providing safe, secure and stimulating environments 2006 2007 through annual house, environment and car safety checks. WCC 2008 The Future OTHER COUNCILS Aims IN GROUP
• Continue to plan and deliver support services for young 50 60 70 80 90 100 children and their families. * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 • Maintain high quality service delivery of early years programs, complying with National and State standards and accreditation systems. • Complete the redevelopment of the Children’s Services Centre. • Achieve recognition by UNICEF of Warrnambool being a ‘child friendly City’. • Develop the Early Years Network as a leading platform in the South West. • Ensure equitable access for all families to early childhood services. • Support and strengthen professionals and organisations in partnership with parents to ensure the best chance of good outcomes for children.
34 Health & Local Laws Overview The Health & Local Laws Branch offers a variety of legislative-based services and functions which include immunisation, food safety, registration and inspection of specific premises, tobacco sales, wastewater management, residential noise and air pollution complaint investigation. The branch is also responsible for parking management and enforcement, school crossing management, animal control, Local Laws enforcement and litter investigations. Community Housing management is also undertaken for 13 properties. At A Glance Food premises inspected 310 Health premises inspected and registered 100 Immunisations given 7,000 Dogs registered 3,500 Cats registered 1,600 Fire prevention notices served 700 Food samples analysed for compliance 100 Community Houses 13 (50 tenants) Key Achievements Protected by Immunisation Footpath Trading Revisited Warrnambool continues to celebrate high immunisation This activity began as an extension of the Street Life rates, which are further increasing following improved Program and encouraged the use of City Centre footpaths service delivery and the introduction of family friendly, for displaying samples of goods, al fresco dining and appointment-based sessions. Evening and Saturday A-frame sign advertising. Traders quickly took up the morning sessions have been added to the program to opportunities which increased their commercial exposure, assist working parents. A dedicated nursing team provides including the establishment of thriving outdoor eating 50% of Warrnambool’s infant immunisation and also visits venues. Last year a review was undertaken and to comply secondary schools and provides special flu programs. with current legislation, minor format changes were made which resulted in increased safety and amenity while Safe Food for All maintaining the vibrancy of the City Centre. Food sampling, premises inspections, complaint investigations, food poisoning and safe food handling are roles the 2 Environmental Health Officers oversee as part of their statutory role to ensure maximum food safety and compliance with standards. In addition, the temporary sale of food from stalls, vans, festivals, markets and fetes are also monitored, resulting in high levels of compliance.
Clean-Up Warrnambool Weekend Each year in March a combined ‘Detox your Home’ household chemicals collection and Clean-Up Day encourages a good clean-up of our foreshore areas as well as any unwanted chemicals stored in our homes. Warrnambool has been involved in the National Clean-Up Day for 18 years and the chemical collections for 5 years. Officers are working towards a permanent disposal site.
35 The Future Aims • Continually improve parking administration. • Maintaining infant immunisation levels above 95%. • Review the Municipal Fire Prevention Plan. • Review the Municipal Road Safety Plan. Challenges • Maintaining consistency of a parking hierarchy throughout the City Centre. • Maintaining a high standard of food handling in registered premises.
Indicators
IMMUNISATION
National State Barwon Warrnambool
87 89 91 93 95 97 99
* SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
ENFORCEMENT OF BY LAWS
2006 2007 WCC 2008
OTHER COUNCILS IN GROUP
50 60 70 80 90 100
* SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
TRAFFIC MANAGEMENT & PARKING FACILITIES
2006 2007 WCC 2008
OTHER COUNCILS IN GROUP
50 60 70 80 90 100
* SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007
3636 A Growing City STRATEGIC OBJECTIVE To facilitate the balanced economic growth of our City, consistent with long-term sustainability, equity and benefits for the community of Warrnambool and the Great South Coast. OVERALL HIGHLIGHTS • Warrnambool Retail Strategy 2007 adopted and implementation commenced. • City Centre Structure Plan (Make Your Mark On Our City Heart) commenced. • Business workshops delivered for the local business community with excellent feedback received from participating businesses. • Strategic studies undertaken including Warrnambool Regional Airport Upgrade Net Benefit and Business Case Assessment, Economic Impact Assessment of Warrnambool Saleyards and Allansford Business Park. • Strong advocacy for the rail freight regional capability and Princes Highway West upgrade. • Completion of Hopkins Coast Structure Plan. • Formulation of Developer Contributions Plan Overlay. • Completion of Merri Street Planning Guidelines. • Public engagement for the Environmental Sustainability Strategy. • Flagstaff Hill Precinct awarded 2007 Victorian State Tourism Award – Tourist Attraction. • Shipwrecked Sound and Laser Show recorded highest visitation since its development. • Increase in Flagstaff Hill memberships and ambassador cards. • Development of partnership with local tourism industry that delivered strong industry support for Warrnambool Booking Service. • Fun4Kids Festival won the 2007 Victorian Tourism Award for Festivals and Events for the third consecutive year which saw it inducted into the ‘Victorian Tourism Awards Hall of Fame. • Fun4Kids Festival won the prestigious 2007 Qantas Australian Tourism Award for Festivals and Events the second year running. • Attraction of the NSW Variety Club Bash and the AFL International Cup to Warrnambool.
37 Business Development Overview The Business Development Branch delivers a diverse range of economic development initiatives to assist existing and new businesses grow. These services are targeted at both individual firms (investment attraction, business advice, recruitment support etc) and specific industry support eg food processing. At A Glance Community planning events participants 191 Retail industry planning submissions 149 Indigenous jobseekers provided with advice and services 75 People participating at 15 business development workshops 346 External funding received > $300,000 Key Achievements
Retail Strategy – The Right Balance Warrnambool Is A Great Place To Work In December 2007 Council adopted a new Retail Strategy Under the State Government’s Global Skills for Provincial for Warrnambool. The Strategy was developed with funding Victoria funding grant Council commenced delivering assistance from the State Government and will be used to skilled migration assistance to employers and businesses guide the development of Warrnambool’s activity centres in Warrnambool and across the Great South Coast. for the next 25 years. The Strategy identifies the City’s role Skill shortages in the region are being identified in providing retail services to Warrnambool and the wider and addressed in partnership with local businesses, region as well as future locations for retail services in neighbouring councils, State and Federal Government Warrnambool. and existing employment and community support Make Your Mark On Our City Heart – service providers. The most notable skills shortages are Planning For Our City Centre experienced by the transport, meat processing and the light and heavy motor vehicle repairs industries. Council commenced the preparation of a structure plan for Warrnambool City Centre. This project attracted Up-Skilling Our Business Community $60,000 funding from the State Government. Preparation In response to the strong demand from the City’s business of the plan is one of the key recommendations of the community, Council has delivered a comprehensive Warrnambool Retail Strategy 2007. program of business development workshops. Overall, 15 To involve our community in the project, Council group initiatives were delivered with close to 400 people conducted a “Make Your Mark On Our City Heart” attending the workshops, in partnership with the State campaign. The campaign hosted 2 community planning Government’s Under New Management program and other conferences with 130 people taking part in the vision- State and Federal Government agencies. The evaluation setting process for Warrnambool’s City Centre. At the results of the workshops indicated a high level of client same time, 72 submissions were received outlining satisfaction with the rating of the workshops being overall people’s aspirations for the future of the City Centre. excellent or good.
Warrnambool Is A Great Place To Study Allansford Industrial Park To promote the City as a great place to study, Council has Council reluctantly took a decision to abandon the again hosted a welcoming function to all the international Allansford Industrial Business Park project. Final students studying in Warrnambool. The welcome, held geotechnical and environmental surveys raised concerns in March 2008, was well attended by the international about the engineering solutions that would be required students and representatives of the local education on the land to cater for heavy industry. It was likely that institutions. a proportion of the land would be unusable and this impacted on the cost and therefore the viability of the Council Welcomes Medical Students project. To assist the medical skills shortages in the region, Council is now undertaking urgent Strategic Planning work Council has developed a ‘Welcome to Warrnambool’ pack to ensure that Warrnambool has access to appropriately for the medical students of the Greater Green Triangle zoned industrial land. University Department of Rural Health (GGTUDRH). This initiative has been warmly received by medical students. 38 Image courtesy of The Warrnambool Standard Warrnambool Regional Airport Upgrade Net The Future Benefit & Business Case Assessment Aims In partnership with Tourism Victoria, Council has • Provide strong support and encouragement to the key commenced the Warrnambool Regional Airport Feasibility industries of Warrnambool and the Great South Coast Study. The Study establishes projections for passenger Region. and tourist numbers, spend rates, length of stay and other • Continue promotion of Warrnambool as a great place relevant data to form a robust regional economic analysis to visit, live, work, do business and study. to complement the infrastructure requirements and needs. • Provide business support across all sectors of Warrnambool’s economy, including workshops Rail Freight – A Vital Regional Transport Link program, business surveys and business directory. Following the announcement of rail freight providers • Ensure that the City’s transport linkages are capable Asciano/Pacific National to withdraw from rail freight of supporting the needs of the growing industries of operations in Victoria, Council strongly advocated to the Warrnambool and the Great South Coast Region. State Government on the need to continue the rail freight Challenges services to Warrnambool and the broader region. • Complete Warrnambool City Centre Structure Plan As a member of the Alliance of Councils for Rail Freight to create a blueprint for future development of Development, Council is acutely aware of the economic Warrnambool City Centre. benefits to the Warrnambool region from improved rail • Deliver the skilled migration project to ensure freight links to the Warrnambool terminal. Council’s Warrnambool and the region has access to a skilled strong advocacy contributed to another rail freight workforce. service provider, El Zorro, taking over the operations of the Warrnambool to Melbourne rail freight line and the • Ensure there is an adequate supply of appropriately continuing provision of rail freight capability to the region. zoned industrial land to facilitate growth of Warrnambool’s economy. Warrnambool – Miura Sister City Association Indicators Council continues to support the efforts of the ECONOMIC DEVELOPMENT Warrnambool – Miura Sister City Association in forging cultural and social links with sister city Miura, Japan. 2006 2007 During the past year Council has completed works on the WCC 2008 Friendship Gardens and has assisted Miura City Council with selection of a Warrnambool resident to live and work OTHER COUNCILS in Miura for the coming year. IN GROUP
50 60 70 80 90 100
* SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 39 Strategic Planning Overview The Strategic Planning Branch was established in an organisational restructure and has been operating for less than 6 months. The aim of the branch is to strategically plan and facilitate Warrnambool’s needs in liveability, land supply, boundary management/regional planning, environmental planning and planning of activity centres. At A Glance Branch established January 2008 Staff resources 2 Senior Strategic Planners 1 Environment Officer 1 Graphical Information Systems Officer Key Achievements The branch has progressed key projects from the inception stage to implementation into the Planning Scheme.
North Dennington Structure Plan After extensive background work to identify the required projects and accurately calculate the costs, final community information sessions are being undertaken Individual Heritage Overlay 1A Liebig Street with affected landowners and parties prior to starting the In response to an application to demolish the building, the Planning Scheme amendment. Minister for Planning intervened to allow interim Heritage Controls to be applied to the site. An independent panel Merri Street & Raglan Parade Guidelines will determine the significance of the building and the The project has been completed and the Planning Scheme suitability of extending the interim controls to a permanent amendment will incorporate the relevant components Heritage Overlay. of the project into a Design Development Overlay which is intended to promote view-sharing principles through The Future consideration of building heights, setbacks and promote Aims good design. • Achieve the delivery of land supplies commensurate Heritage Gap Study Stage 3A (Precincts) with State Government requirements and the City’s growth needs. 28 new heritage precincts have been selected to protect • Promote South West Victoria as a regional growth the quality of Warrnambool’s historic fabric. After further corridor. consultation with the community, a Planning Scheme amendment will also commence later in 2008. Heritage • Plan and deliver tangible improvements to the natural Guidelines are being prepared to coincide with this environment. amendment which will provide advice and certainty in • Continue ongoing review and implementation of planning applications. appropriate planning controls for Warrnambool. Retail Strategy • Increase community involvement in planning processes and lift public opinion of planning within the The Strategy provides policy direction for the planning and municipality. management of activity centres in Warrnambool over the next 25 years. The Planning Scheme amendment will be Challenges undertaken to implement the recommendations of the • Resolve land supply issues for both residential and Strategy. industrial land.
40 Holiday Parks Tourism Services Surfside Holiday Park is a major tourism operation with Overview over 1,200 camping sites and 35 self contained cabins. Significant growth in this sector of the tourism industry The Tourism Services Branch oversees a range of has been reflected in the 2007/08 results with strong operational, tourism development and marketing initiatives growth in use through shoulder and off-peak periods. The that Warrnambool City Council directly operates and Surfside Holiday Park camp kitchen is due for completion supports including Flagstaff Hill Maritime Precinct, in September 2008. Warrnambool Visitor Information Centre, Holiday Parks, Industry Liaison and Marketing Support. Industry Liaison At A Glance Tourism Services continued a strong liaison with the National, State and local industry. Manager Tourism “Shipwrecked” attendance 31,800 Services was elected Chair of the Australian Heritage Visitor Information Centre Parks Association, as well being a board member of booking service $350,000 Great Ocean Road Marketing and the Heritage Victoria Visitor Information Centre Shipwreck Advisory Committee. Tourism Services staff attendance 153,451 also play an active role in Victorian Tourism Alliance and Victorian Maritime Museums Association. Visitor Information Centre website hits 85,844 Marketing Support Flagstaff Hill website hits 25,408 Tourism Services oversees Council’s investment of Flagstaff Hill volunteer hours 15,000 $170,000pa in Shipwreck Coast Marketing, the regional Holiday park visitors 49,224 tourism organisation, which is a partnership of local governments (Warrnambool, Moyne and Corangamite) and Key Achievements the region’s tourism operators. Flagstaff Hill Maritime Precinct The Future Flagstaff Hill fulfils a number of roles in the local tourism Aims industry, as well as maintaining Warrnambool cultural • Develop a Flagstaff Hill Accommodation Study linked to and heritage links to its maritime past. It provides 2017 Navigate Strategic Plan. Warrnambool with a facility that acts as a tourism • Ongoing development of Flagstaff Hill business model attractor, not just a tourism activity. to take advantage of the cultural and heritage precinct Throughout the year, in line with the Navigate 2017 values. Flagstaff Hill Strategic Plan, a range of new initiatives • Further develop Warrnambool Visitor Information resulted in a record level of revenue for the precinct. This Centre services linked to its operational vision. came from products, flexibility in the operation of the precinct and a development of a broader range of revenue • Develop a Surfside Strategic Development Plan to sources. assist in capturing industry trends and maintaining important Warrnambool lifestyle values. Warrnambool Visitor Information Centre • Continue industry leadership to promote Warrnambool Warrnambool Visitor Information Centre operates as a as an industry leader. significant tourism service with the vision ‘to influence • Develop a short and long term strategy for the ‘Rowitta’ guest behaviour to stay longer and do more activities in vessel and undertake small vessel restoration works. Warrnambool.’ Challenges Throughout the year significant renewal of services was undertaken to better service the local community. A major • Economic conditions in tourism will result in project was the introduction of an over-the-counter and challenging trading conditions through 2008/09 for online booking service. Through a partnership with the Flagstaff Hill and holiday parks. Warrnambool Tourism Association, the service achieved • Raised expectations of holiday parks users will require over 1,500 bookings totalling $350,000 in sales for the strong planning for future infrastructure developments. Warrnambool tourism industry in 7 months of operation. • Managing the extensive heritage collection contained at Flagstaff Hill Maritime Precinct.
41 42 Events & Promotion Overview The Events & Promotion Branch is responsible for the Fun4Kids Festival and other events together with the production of visitor information material and destination promotion for event and conference attraction. Service delivery is split across 3 distinct areas being event attraction and facilitation, promotion and research and development. At A Glance Summer Activity Pavilion participants 1,100 Twilight Movies participants 1,300 Fun4Kids Festival participants 33,519 Australia Day participants 650 Key Achievements
Event Support Website Significant event support was provided to hosting a range The design and layout of the www.warrnamboolinfo.com.au of events including Australia Day, the 2008 Wunta Fiesta, website was coordinated by the branch and the site went and the Crusty Demons tour. The Portuguese Festival also live in November 2007. attracted hundreds of visitors to the City in early March. The Future Fun4Kids Festival Aims The 2007 Fun4Kids Festival was held from 1 to 8 July. • Support events that grow the economy and positive This not-for-profit tourism initiative successfully attracted profile of the City by attracting visitors to Warrnambool. 33,519 visitors resulting in over 28,000 bed-nights and a $2.2 million injection into the local economy. Organisers • Support and maximise the benefits and legacies of utilised valuable feedback from the event to implement major events hosted by Warrnambool to increase the new initiatives and planning for the 2008 festival in order positive impact for the City. to continue to improve on the significant social and • Establish and promote Warrnambool as an appealing economic benefits the event delivers to the City. event/conference destination. • Develop a 4 year event/conference attraction strategy. Summer Initiatives • Build and strengthen Warrnambool’s capacity to host Summer initiatives were implemented to compliment the and produce high quality events. visitor experience during the peak December/January period to lift the positive perception of Warrnambool and • Foster a vibrant calendar of events that enhance encourage repeat visitation. Warrnambool as a place to live and visit. Summer Night Markets were held on 28 December and • Maintain and grow the Fun4Kids Festival’s position as 4, 11, 18 and 25 January at Lake Pertobe. The Summer Australia’s premier children’s festival. Activity Pavilion was held from 5 to 20 January with a range Challenges of activities for adults and children along with the Twilight • Sustain Fun4Kids as Australia’s best children’s festival. Movies in the Park held on 4, 11 & 19 January. • Effectively grow tourism yield by focusing on key Promotional Material markets with greater tendency for expenditure and overnight stays. The branch produced a range of promotional material, including the 2008 Warrnambool Visitor Guide, • Effectively position Warrnambool as an attractive Warrnambool Visitor Maps, the Warrnambool Street destination among a challenging and competitive Directory, introduced a new Warrnambool ‘activity tourism environment. placemat’ and provided ongoing management and updates of the Warrnambool image library. 43 Warrnambool Livestock Exchange Overview The Warrnambool Livestock Exchange provides weekly fat cattle, calf and sheep sales at the Caramut Road facility servicing primary industry across South West Victoria. At A Glance Cattle throughput 102,205 Calves throughput 9,587 Sheep throughput 13,993 Value of cattle sold $66,425,829 Key Achievements Value of Stock Sold The value of stock sold through the yards has decreased slightly with the total value of cattle sold between 1 July 2007 and 30 June 2008 being $66,425,829. All cattle are now being scanned at the Exchange under the National Livestock Exchange Identification Scheme (NLIS) and checked against the database for Lifetime Traceability. The Warrnambool Livestock Exchange electronically scans National Vendor Declarations (NVDs) which are emailed to agents, buyers and via request to vendors.
Economic Impact Assessment Study During 2007 Council was approached by a private operator to build, own and operate a livestock exchange facility on the basis that Council closed its operations. Council completed the Economic Impact Assessment Report of the Warrnambool Livestock Exchange. The objective of the study was to determine the existing economic contribution the exchange makes to the Warrnambool regional economy on an annual basis and identify any change in the regional economy as a result of a potential relocation to a site near Garvoc. The Economic Impact Assessment Report has now been adopted by Council as a reference document. Council needs to consider a wide range of issues and undertake community consultation before making a decision.
Effluent Effluent treatment systems have successfully contained all waste in the 2007/08 year. The cost of waste treatment is increasing and remains an issue for management.
Accreditations Warrnambool Livestock Exchange has also successfully reapplied for accreditations including Quality Assurance, Meat Standards Australia and European Union accreditation.
The Future 10 YEAR CATTLE THROUGHPUT Aims 130,000
• Determine the future of the 120,000
saleyards on the current site. 110,000 • Minimise waste treatment costs. 100,000 90,000 Challenges 80,000
• Continue to meet modern standards 70,000
of selling stock. 60,000
50,000
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 44 Responsible Asset Management STRATEGIC OBJECTIVE To ensure Council–managed infrastructure assets are safe, functional and well maintained and that new investment or improvements achieve environmental and industry best practice. OVERALL HIGHLIGHTS • Received funding to upgrade major works at the Warrnambool Airport and Port of Warrnambool. • Completed a major building audit of all Council buildings. • Use of recycled road material for the construction of the Warrnambool to Port Fairy Rail Trail. • Completion of Gateway Road from Raglan Parade to 400 metres North at a total cost of $1.23m. • Completion of Morriss Road Main Drain Scheme at a total cost of $1.8m including installation of pipes and construction of a gross pollutant trap prior to the outfall to the Merri River. • Treatment of 3 black spot locations at intersections at a cost of $700,000. • Construction of Timor Street pedestrian crossing at a cost of $90,000. • Council upgraded access and pits as the first step in the restoration of Simpson Street Tunnel.
45 Infrastructure Services Overview The Infrastructure Services Branch carries out building maintenance on all Council facilities including management of Warrnambool Airport and Port of Warrnambool and is responsible for rehabilitation refurbishment of Council’s infrastructure. The branch manages Council’s fleet of plant and motor vehicles and is responsible for the maintenance of parks and gardens, recreation reserves and open space areas. The branch also oversees the contract and services in relation to waste management and litter collection and street and footpath sweeping. The branch maintains Council’s asset register, collection of asset data and development of asset management plans. At A Glance Roads and drains maintenance $1.99m Parks and Gardens maintenance $2.19m Fleet maintenance $2.59m Port of Warrnambool funding $1.7m Waterways improve/upgrade funding $780,000
Rehabilitation Cost Asset Quantity Asset Description $ (m2) Pavement (Sealed Link Roads) 24,838,050 496,761 Pavement (Sealed Collector Roads) 19,894,950 397,899 Pavement (Sealed Access Roads) 63,457,661 1,269,153 Gravel Resheets 287,210 114,884 Asphalt Surfaces 8,239,786 411,989 Spray Seals 10,521,431 1,878,827 Concrete Footpaths 20,097,544 304,508 Other Footpaths 2,488,500 49,770 Kerb & Channel 26,563,589 402,479 Bridges + Major Culverts Long Life 7,540,000 22 Bridges + Major Culverts Short Life 520,000 2 Storm Water Pits 8,319,104 10,080 Storm Water Pipes 22,343,836 182,671 Build Structure - Long Life 54,189,414 131 Build Structure - Short Life 8,838,830 122 Building Roof 4,502,018 249 Build Mechanical Services 4,502,018 175 Building Fit Out 18,008,070 242 Playground Equipment 2,045,000 61 Sporting Ovals 2,640,000 18 TOTAL 309,837,011 5,520,043
4646 STORM WATER ASSETS $ VALUE BUILDING ASSETS $ VALUE ROAD RESERVE ASSETS $ VALUE $31.66 Million $90.04 Million $176.39 Million
$2,488,500 $26,563,589 $20,097,544 $8,319,10 $18,008,07 $10,521,431
$4,502,018 $24,838,050 $8,239,786 $287,210 $4,502,018
$8,838,830 $22,343,836 $54,189,414 $19,894,950
$63,457,661
Storm Water Pits Build Structure – Long life Pavement (Sealed Acess Roads) Storm Water Pipes Build Structure – Short life Pavement (Sealed Collector Roads) Building Roof Pavement (Sealed Link Roads) Build Mechanical Services Kerb & Channel Building Fit Out Other Footpaths Concrete Footpaths Spray Seals Asphalt Surfaces Key Achievements Gravel Resheets Asset Maintenance The branch maintained 291 buildings, 182km of drainage and over 2,278,000m2 of road infrastructure including The Future 2 114,884m of unsealed roads. Aims 2 The branch also undertook 91,800m of bituminous • Continue to ensure that Council’s asset base is 2 resealing of roads and streets, 6,500m of asphalt strategically managed and rigorously reviewed 2 resheeting and reconstructed 17,000m of road pavement. responding to the community’s changing needs. A larger growing area of parks, gardens and open space • Model and report the future levels of funding to ensure areas were maintained throughout the municipality. The that there is a clear link between the budget process area managed is growing each year as Warrnambool and financial needs to maintain Council’s assets. continues its residential land growth. • Complete dredging of the Port of Warrnambool. Asset Management Plan • Complete construction of the terminal building at the Development of an Asset Management Plan for Council’s Warrnambool Airport. building has commenced. The Plan will provide Council • Undertake rehabilitation works on the breakwater. with a methodology to manage Council’s buildings as well Challenges as determining the long-term funding needs to maintain and preserve the assets for their whole-of-life. • Ensure the asset database is continuing to be improved and identifies all Council’s assets Warrnambool Airport & Port of Warrnambool • Provide a funding model to manage Council’s assets Council received funding to upgrade the terminal building over the next 20 years at the Warrnambool Airport and major works at the Port of • Record all Council’s assets, in particular to understand Warrnambool totalling $1.8m. the extent of Council’s drainage infrastructure. Building Audit • Ensure community expectations match the service level at which Council maintains its assets. The branch completed a major building audit of all Council buildings. An Asset Management Plan for buildings has • Develop a Road Asset Management Plan also commenced with a view to identifying the lifecycle recommending funding needs and to better manage responsibilities, a building hierarchy, a definition of Council’s road network maintenance verses renewal responsibilities and the • Develop a Long Term Financial Strategy to meet financial modelling of the works that need to be achieved expectations of the community to maintain all classes verses the annual budget allocations. of assets.
Going Green Indicators Council used recycled road material for the construction of • 90% target for Customer Service levels for asset Stage 1 of the Warrnambool to Port Fairy Rail Trail. maintenance. 47 Capital Works & Major Projects Overview The Capital Works & Major Projects Branch undertakes the planning and delivery of infrastructure works and major projects on behalf of Council and its many service areas. At A Glance Capital works completed $12.38m Footpaths and walking paths extension 1,757m New stormwater drains 1,500m Bituminous resealing 91,800m2 Upgraded bus stops 40 Treated black spots 3
Capital Works $ Value
Capital Works - Local Road Asphalt Resheets 141,796 Capital Works - Local Road Pavement Rehabilitation 813,946 Capital Works - Local Roads - Major Patching 268,612 New Road, Carpark Construction 1,348,648 New Traffic Works 759,081 New Footpath Works 275,589 Roads Miscellaneous Works 328,494 Capital Drainage Backlog and Rehabilitation Works 346,475 Development Works 1,873,332 Community Facilities 703,556 Active Reserves New and Rehabilitation 149,536 Neighbourhood Parks New and Rehabilitation 47,125 Natural and Environmental 151,562 Playgrounds 87,883 Town/Activity Centres Including CBD 29,589 Warrnambool Harbour and Foreshore Treatment 649,539 Warrnambool Harbour Pavilion 18,991 Cultural Precinct 56,381 Swan Reserve 6,745 SES Relocation Walsh Road 107,437 Miura Friendship Gardens 92,502
4848 Key Achievements The Future Aims Stormwater Drainage • Develop Council’s Long-Term Capital Works Program. Council continues its focus on renewal of the City’s important drainage infrastructure and has completed • Plan for the infrastructure needs in developing areas in 1,500m of new stormwater drains predominately in Morriss Dennington and North Warrnambool. Road and renewed a further 100m of stormwater drains. • Develop longer term traffic management needs to meet Council has also upgraded the access and cleared debris future growth. from the Simpson Street tunnel and constructed a gross • Continue to implement actions identified in the pollutant trap on the Japan Street outfall drain. Drainage Strategy. Footpaths & Walking Paths • Capital Works & Projects Branch becomes the leading regional engineering group for the government sector. Council’s commitment to extending the footpaths and walking paths continues with 1,757m of footpaths Challenges constructed in Gateway Road, Gateway Road to Wanstead • Planning infrastructure for growth in Warrnambool. Street, Russell Street and along Russells Creek from Wares • Impact of increased freight on Warrnambool road and Road to Whites Road. rail services. Council has also undertaken a significant Rail Trail project • Identify major traffic routes and potential alternative in conjunction with the Moyne Shire Council and has truck routes through the City. constructed the trail from Gilles Street to Stanley Street. The trail is planned to go from the Harbour Pavilion at • Develop a priority list of major intersection and traffic Warrnambool through to Port Fairy. treatments. • Community expectations of further development in Traffic Management relation to linking and upgrading of active transport Council has undertaken pedestrian counts at 165 systems including bicycle paths, walkways and locations, treated 3 accident Black Spots and completed 3 footpath links. Road Safety Audits. Council has also constructed 2 speed • Develop a forward capital works program to deliver the humps along The Esplanade (Dennington Kindergarten), vision of the City Centre Structure Plan. 2 along the Raglan Parade service road (opposite Gateway Road) and 1 at the exit of McGennans Carpark. • Finalise land acquisition for the Harrington Road drainage project and Block 17 drainage easements. Public Transport Indicators Council replaced 15 bus shelters and upgraded a further LOCAL ROADS & FOOTPATHS 40 bus stops to meet disability access requirements.
2006 Community Projects 2007 WCC 2008 Council has completed harbour revitalisation works and installed fishing jetties on the Hopkins River at Jubilee OTHER COUNCILS Park and the Warrnambool Angling Club. IN GROUP Construction has also commenced on the community facilities at the Airport Terminal building, Allansford 50 60 70 80 90 100 Mechanics Institute Hall, relocation of the SES * SOURCE: Auspoll Community Satisfaction Measurement Survey – November 2007 Headquarters to Walsh Road and the Surfside Holiday Park camp kitchen. These projects are expected to be completed by September 2008. 49 Warrnambool The corporate reporting system allows Council to effectively monitor performance against established Best Value Program targets to ensure sustainable service delivery to the community. Service unit costs and quality standards have 2007- 2008 been developed and these will be compared over time to Warrnambool City Council introduced the Best Value identify trends and influence future service delivery. Program in 2001 as part of Council’s commitment to Planning For The Future providing relevant and effective service delivery. Council has embraced the 6 Best Value Principles by incorporating Council will continue to engage the community in its them into the organisation’s management processes, to decision making through regular consultation activities ensure services are delivered that reflect the needs of our including the annual Community Satisfaction Survey, community. service-specific customer surveys, workshops, community meetings, focus groups and Council advisory committees The Best Value Principles relate to quality and cost and meetings. standards, the provision of responsive and accessible services, continuous improvement, as well as consultation Council has commenced the introduction of the Australian and reporting to the community. Warrnambool City Business Excellence Framework (ABEF). It is suggested Council has applied the principles through corporate that ABEF will provide a suitable mechanism to ensure the planning and community engagement initiatives, and in long-term sustainability of Warrnambool City Council and the development of the Council Plan, service area business enhance previous approaches incorporating the Best Value plans, strategies and policies. Principles. Council has integrated the Best Value Principles into In 2008/09 Council will undertake a learning program Council’s annual business planning process with links which takes the organisation and staff through a stage to the Council Plan Strategies and Budget Activities and by stage assessment of Business Excellence Principles. Initiatives. Council staff will then undertake an assessment of the organisation where improvement action plans and Measuring Our Performance priorities are established for 12 months and link into the Council has implemented an integrated reporting and Council Plan. measurement system to support strategic and business Initially ABEF will focus on improving organisation-wide unit planning, and regularly monitors and measures the systems and processes and then will return to applying achievement of projects and our performance. ABEF to service units.
Statutory & Government Policy Information
Freedom of Information Act The Freedom of Information Act provides the opportunity Details of requests received by Council over the preceding for public access to certain Council documents. The Act 12 months: establishes a legally enforceable right for the community to access information in document form held by Council. Total number of requests 4 Requests for access of information under the Freedom Access granted in full 2 of Information Act should be made in writing specifying Access granted in part 2 the information required. The application fee is $22.70 and other charges may be levied in accordance with the Applications withdrawn 0 Freedom of Information Regulations. Requests still under consideration 1 Number of internal reviews sought 0 Number of appeals lodged with the Victorian 0 Civil and Administrative Appeals Tribunal Total charges collected $88
50 Whistleblowers Protection Act Privacy Act The Whistleblowers Protection Act 2001 came into effect The Victorian Information Privacy Act 2000 came into effect on 1 January 2002. Its purpose is to encourage and on 1 September 2001. The Act has significant implications facilitate the disclosure of improper conduct by Councillors for information management within Council. It is based on and Council officers. information privacy principles that can be summarised as: The Act also provides protection for people making • Only information necessary to carry out Council disclosures who may suffer reprisals as a result of their functions should be collected. actions. • Those affected should be aware information is being Warrnambool City Council recognises the value of collected. transparency and accountability in its administrative and • Information should be used for the purpose for which it management practices. Council supports the making of was collected. disclosures that reveal: • Upon collecting information, responsibility should be • Corrupt conduct; taken to ensure that it is accurate and secure. • Conduct involving a substantial mismanagement of In implementing this Act, Council has identified the public resources; and organisation’s numerous information systems, the • Conduct involving a substantial risk to public health personal information each system holds and the practices and safety or the environment. that exist in respect to collection, management and use of The Whistleblowers Protection Act 2001 provides for a this information. confidential process for making disclosures. Warrnambool The implementation program has included the adoption of City Council has developed and adopted guidelines and a Privacy Policy and Guidelines, appointment of a Privacy procedures to manage its compliance with the Act. These Committee and Privacy Officer, amendment of numerous guidelines are consistent with Victoria’s Ombudsman forms and information systems to meet new consent and guidelines and with the requirements of the Act. security standards and review of information disclosure Council’s Policy and Guidelines are available for viewing at practices. Warrnambool City Council offices and on the Warrnambool Information requests and any questions or complaints City Council website. regarding people’s rights under the new privacy legislation Council’s Whistleblower Protection Coordinator is and Council’s information practices can be discussed with the initial contact for any disclosures made under the Council’s Privacy Officer. provisions of the Act and has principal responsibility for managing disclosures and overseeing the reporting system. Where a disclosure is to be made in relation to a Councillor or the Chief Executive Officer, it is made directly to the Ombudsman Victoria. During 2007/08 there were: • No disclosures made to the Council; • No disclosure referred to the Ombudsman for determination; • No disclosed matters referred to the Council by the Ombudsman; • No investigations of disclosed matters taken over by the Ombudsman from the Council; • No requests under Section 74 of the Whistleblowers Protection Act to the Ombudsman to investigate disclosed matters; • No matters that the Council has declined to investigate; • No disclosed matters that were substantiated on investigation and action taken on completion of the investigation; and • No recommendations from the Ombudsman under the Act to the Council.
51 Victorian Local Government Indicators 2007/08
2004/2005 2005/2006 2006/2007 2007/2008
Affordability/Cost of Governance Average Rates and Charges per Assessment 1,009 1,102 1,183 1,282 Average Rates and Charges per Residential Assessment 882 927 989 1,102
Sustainability Average Liability per Assessment 889 946 985 1,145 Operating Result per Assessment -39 86 424 422
Services Average Operating Expenditure per Assessment 2,799 2,725 2,796 3,050 Community Satisfaction Rating for Overall Performance Generally of the Council 69 68 71 68
Infrastructure Average Capital Expenditure per Assessment 298 384 462 805 Renewal Gap Ratio 45% 67% 66% 87% Renewal and Maintenance Gap Ratio 65% 78% 74% 89%
Governance Community Satisfaction Rating for Council’s Advocacy and Community Representation on Key Local Issues 65 67 68 63 Community Satisfaction Rating for Council’s Engagement in Decision Making on Key Local Issues 54 62 65 61
5252 Local Government Improvement Incentive Program Statement 2007/08
National Competition Policy Compliance – 2007/08 Certification by Chief Executive Officer Warrnambool City Council has complied with the requirements of the Local Government Improvement Incentive Program in respect of: • National Competition Policy (in accordance with National Competition Policy and Local Government – A Revised Statement of Victorian Government Policy (January 2002)); for the financial year as set out below:
A. Trade Practices Compliance State whether the Council is compliant or non-compliant. Council is compliant. If non-compliant, justify or cite actions to redress.
B. Local Laws Compliance State whether the Council is compliant or non-compliant. Council is compliant. If non-compliant, justify or cite actions to redress.
C. Competitive Neutrality Compliance
State whether the Council is compliant or non-compliant for all Council is compliant. significant businesses. If non-compliant, justify or cite actions to redress.
I certify that: a) this statement has been prepared in accordance with the 2006/07 Local Government Improvement Incentive guidelines issued in June 2007 for reporting on the following criterion :- National Competition Policy in accordance with National Competition Policy and Local Government – A Revised Statement of Victorian Government Policy (January 2002); and b) this statement presents fairly the Council’s implementation of the National Competition Policy.
Signed:
WILLIAM S. MILLARD (Acting Chief Executive Officer)
Date: 15 September 2008 53 Documents Available For Public Inspection The following information is available for m) Details of all property, finance and operating leases public inspection at the Warrnambool Civic involving land, buildings, plant, computer equipment or vehicles entered into by the Council as lessor or lessee, Centre. including the name of the other party to the lease and a) Details of current allowances fixed for the Mayor and the terms and the value of the lease. Councillors under Section 74 or 74A of the Act. n) A register of authorised officers appointed under b) Details of senior officers’ total salary packages for the Section 224 of the Act. current financial year and the previous year including o) A list of donations and grants made by the Council the gross salary, the amount of the Council or employer during the financial year, including the names of contribution to superannuation, the value of any motor persons or bodies which have received a donation or vehicle provided by the Council and the total value grant and the amount of each donation or grant. of any other benefits and allowances provided by the p) A list of the names of the organisations of which the Council. Council was a member during the financial year and c) Details of overseas or interstate travel (with the details of all membership fees and other amounts and exception of interstate travel by land for less than 3 services provided during that year to each organisation days) undertaken in an official capacity by Councillors by the Council. or any member of Council staff in the previous 12 q) A list of contracts valued at $100,000 or more which the months, including the names of the Councillors or Council entered into during the financial year without members of Council staff and the date, destination, first engaging in a competitive process and which are purpose and total cost of the overseas or interstate not contracts referred to in Section 186(5) of the Act. travel. d) Names of Council officers who were required to submit a return of interest during the financial year and the Civic Receptions dates the returns were submitted. e) Names of Councillors who submitted returns of interest & Ministerial Visits during the financial year and the dates the returns were • 10 August 2007 – The City hosted a Mayoral Welcome submitted. to visiting Miura City school students. f) Agendas for and minutes of ordinary and special • 18 September 2007 – The City hosted a two-day visit meetings held in the previous 12 months kept under from the Governor of Victoria, Professor David de Section 93 of the Act except if the minutes relate to Kretser AC & Mrs Jan de Kretser. parts of meetings which have been closed to members of the public under Section 89 of the Act. • 3 October 2007 – The City hosted a visit by The Hon. Jacinta Allan, MP, Minister for State g) A list of all special committees established by Council & Regional Development. and the purpose for which each committee was established. • 28 November 2007 – The City hosted a visit by The Hon. Joe Helper, MP, Minister for Small Business. h) A list of all special committees established by the Council which were abolished or ceased to function • 29 November 2007 – The City hosted a visit by The Hon. during the financial year. Richard Wynne, MP, Minister for Local Government. i) Minutes of meetings of special committees established • 12 December 2007 – The City hosted a visit from under Section 86 of the Act and held in the previous The Hon. Justin Madden, MP, Minister for Planning. 12 months except if the minutes relate to parts of • 18 March 2008 – The City hosted a Civic Reception meetings which have been closed to members of the to international students attending Warrnambool public under Section 89 of the Act. educational institutions and to celebrate International j) A register of delegations kept under Sections 87, 88 Education Week. and 98 of the Act, including the date on which the last • 2 April 2008 – The City hosted a visit from The Hon. review under Section 98(6) of the Act took place. James Merlino, MP, Minister for Sport & Recreation. k) Submissions received in accordance with Section 223 • 22 April 2008 – The City hosted a Civic Reception to of the Act during the previous 12 months. recognise the 150th Anniversary of the Warrnambool l) Agreements to establish regional libraries under Racing Club Inc. Section 196 of the Act. • 13 May 2008 – The City hosted a visit from the Governor of Victoria, Professor David de Kretser AC & Mrs Jan de Kretser. 54 Understanding the Financial Reports
Council’s Financial Report, Standard Statements and Performance Statement are prepared in accordance with the Australian Accounting Standards, the Local Government Act 1989 and the Auditor-General’s model accounts. Each of these reports is audited by the Victorian Auditor-General and Council has again received unqualified audit opinions. The Financial Reports provide details of Council’s financial performance for the 2007/08 financial year and of Council’s financial position at 30 June 2008. The results for this year record a surplus for the year of $6.330m and confirm that Council’s financial strategy continues to provide a sound financial position to enable Council to continue to deliver value for money services and facilities in accordance with the community’s expectations. A summary of the financial results and future year projections are shown below:
ACTUAL 2008 – 2012 STRATEGIC RESOURCE PLAN 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 $ 000’s $ 000’s $ 000’s $ 000’s $ 000’s $ 000’s Total Revenue 47,631 52,122 50,022 51,498 59,833 57,325 Total Expenditure (41,379) (45,792) (45,486) (46,549) (48,487) (50,268) Net Result for Year 6,252 6,330 4,536 4,949 11,346 7,057
2008 REVENUE Statutory fees User fees & fines 2% 23%
Rates & Income Statement charges 36% The Income Statement shows all sources of income and all expenditure for the year with net result being a surplus or Grants 26% deficit for the year. Other revenue 3% Contributions Council’s major sources of income are rates and charges, 7% Net gain on disposal user fees and fines and grants and contributions, of assets 3% including assets “gifted” to Council by developers. Employee costs and materials and services account for the 2008 EXPENSES Finance majority of Council’s operating expenses. Depreciation costs 1% (writing down of Council assets) is also a significant Materials & Employee expense item. benefits 39% services 43% To be financially sustainable, a Council should be returning a surplus result in most years.
Balance Sheet Deprecation Other The Balance Sheet is a snap-shot of the Council’s 15% expenses 2% financial position at 30 June. This summary shows what There are four key financial reports which record the assets Council owns and what it owes as liabilities. The Council’s financial performance, namely; difference between assets and liabilities is net assets which is the net worth of the Council. • Income Statement Assets and liabilities are separated into Current and Non- • Balance Sheet Current categories, with Current being those items which • Statement of Changes in Equity fall due in the next 12 months. • Cash Flow Statement These reports, together with the Notes to the Financial Statements, provide the readers with information on Council’s financial performance and are explained as follows. 55 Assets Notes to the Accounts • Cash including cash at bank and investments. The notes to the financial accounts set out the basis • Receivables are monies owed to Council including under which the financial report has been prepared. This rates outstanding and sums owed for a variety of includes reference to accounting policies and standards. services provided to customers. The notes also provide further detail of the summary • Property, infrastructure, plant and equipment represent figures contained in the major financial statements. the majority of Council’s assets and include the value Notes to the accounts are a very important part of the of all land, buildings, roads, equipment and other financial report and should be read in conjunction with infrastructure assets (drainage, footpaths, kerbs and the financial statements. Note references are contained channel) which have been built up and acquired over throughout the financial report. many years. Standard Statements Liabilities Standard Statements have been recently introduced to • Payables are amounts owed by Council to creditors and compare Council’s actual financial results to the budgeted others at 30 June for goods and services provided to outcomes. Council. The Standard Statement of Income, Balance Sheet, Cash • Provisions represent the accrued benefits owed to staff Flow and Capital Works are prepared annually. at balance date and includes long service leave and Any variance to budget which is greater than 10% is annual leave. explained with commentary. • Interest bearing loans is the amount of loan debt owing at balance date. Certification and Auditor-General’s Report The Financial Report is signed off by the Principal Equity Accounting Officer, Councillors and the Chief Executive • Asset Revaluation Reserve is the increases made to who certify that the Financial Report has been prepared in asset values from time to time which is over and above accordance with all reporting requirements. their previous carrying values. The Auditor-General provides an independent opinion • Accumulated Surplus is the value of all net assets on the financial report and will advise the reader of the accumulated over time. statements of any issues of concern.
Statement of Changes in Equity The statement shows the value of changes made within Ratepayers Equity over the course of the year. The main reasons for changes in equity are “surplus or deficit” results from operations, transfer of funds to or from reserves or the revaluation of assets.
Statement of Cash Flows The Cash Flow Statement provides a summary of the Council’s cash payments and cash receipts for the year and eliminates non cash transactions. This Statement reconciles cash balances at the beginning and end of the financial year.
5656
TABLE OF CONTENTS – Financial Report PAGE PAGE Financial Statements Note 28 Reconciliation of cash flows from 26 Income Statement 1 operating activities to surplus(deficit) Balance Sheet 2 Note 29 Reconciliation of cash and cash 26 Statement of Changes in Equity 3 equivalents Cash Flow Statement 4 Note 30 Financing arrangements 26
Notes to the Financial Statements Note 31 Restricted assets 27
Introduction 5 Note 32 Superannuation 27
Note 1 Significant accounting policies 5 Note 33 Commitments 29
Note 2 Rates and charges 12 Note 34 Operating lease commitments 30
Note 3 Statutory fees and fines 12 Note 35 Contingent liabilities and contingent 30 assets Note 4 User fees 12 Note 36 Financial instruments 31 Note 5 Grants 13 Note 37 Auditors’ remuneration 37 Note 6 Contributions 14 Note 38 Events occurring after balance date 37 Note 7 Other revenue 14 Note 39 Related party transactions 37 Note 8 Employee benefits 14 Note 40 Income, expenses and assets by Note 9 Materials and services 14 functions/activities 39 Note 10 Bad and doubtful debts 14 Note 41 Financial ratios (performance 41 indicators) Note 11 Depreciation and amortisation 15 Note 42 Capital expenditure 43 Note 12 Finance costs 15 Note 13 Other expenses 15 Note 43 Pending accounting standards 44 Note 14 Net gain(loss) on disposal of Certification of the Financial Report 46 property, plant and equipment, 15 Standard Statements infrastructure Note 1 Basis of preparation 47 Note 15 Investment in associates 15 Standard Income Statement 48 Note 16 Cash and cash equivalents 16 Standard Balance Sheet 50 Note 17 Trade and other receivables 17 Standard Cash Flow Statement 52 Note 18 Other assets 17 Standard Statement of Capital Works 54 Note 19 Inventories 17 Certification of the Standard Statements 56 Note 20 Assets held for sale 17 Auditor-General’s report on the financial Note 21 Property, plant and equipment, 57 17 report and standard statements infrastructure Performance Statement 59 Note 22 Other assets 23 Approval of the Performance Statement 62 Note 23 Trade and other payables 23 Auditor-General’s report on the Note 24 Trust funds and deposits 23 63 performance statement Note 25 Provisions 23
Note 26 Interest bearing loans and borrowings 24
Note 27 Reserves 25 Income Statement For The Year Ended 30 June 2008
Note 2008 2007 $’000 $’000
Revenue Rates and charges 2 19,238 17,492 Statutory fees and fines 3 988 948 User fees 4 12,026 11,125 Grants - Recurrent 5 10,504 9,423 Grants - Non-recurrent 5 3,154 1,937 Contributions - Cash 6 (a) 2,479 2,372 Contributions - Non-monetary assets 6 (b) 939 3,459 Other revenue 7 1,360 875
Total revenue 50,688 47,631
Expenses Employee benefits 8 (17,900) (16,452) Materials and services 9 (19,725) (17,434) Bad and doubtful debts 10 (145) (16) Depreciation and amortisation 11 (6,943) (6,501) Finance costs 12 (462) (400) Other expenses 13 (617) (560)
Total expenses (45,792) (41,363)
Net gain(loss) on disposal of property, plant and equipment, infrastructure 14 1,397 9 Share of net profits(losses) of associates and joint ventures accounted for by the equity method 15 37 (25)
Surplus (deficit) for the period 6,330 6,252
The above income statement should be read with the accompanying notes.
1 Balance Sheet as at 30 June 2008
Note 2008 2007 $’000 $’000
Assets Current assets Cash and cash equivalents 16 14,348 10,536 Trade and other receivables 17 3,522 2,078 Other assets 18 1,247 1,197 Inventories 19 99 150 Non-current assets classified as held for sale 20 0 388 Total current assets 19,216 14,349
Non-current assets Trade and other receivables 17 221 174 Investments in associates accounted for using the equity method 15 726 683 Property, plant and equipment, infrastructure 21 368,479 315,766 Other assets 22 561 174 Total non-current assets 369,987 316,797 Total assets 389,203 331,146
Liabilities Current liabilities Trade and other payables 23 3,845 2,362 Trust funds and deposits 24 1,009 831 Provisions 25 3,463 3,079 Interest-bearing loans and borrowings 26 1,415 1,202 Total current liabilities 9,732 7,474
Non-current liabilities Provisions 25 413 584 Interest-bearing loans and borrowings 26 7,054 6,469 Total non-current liabilities 7,467 7,053 Total liabilities 17,199 14,527
Net Assets 372,004 316,619
Equity Accumulated surplus 139,144 134,178 Reserves 27 232,860 182,441 Total Equity 372,004 316,619
The above balance sheet should be read with the accompanying notes.
2 Statement of Changes in Equity for the Year Ended 30 June 2008
Asset Accumulated Revaluation Other Total Surplus Reserve Reserves Note $’000 $’000 $’000 $’000
2008
Balance at beginning of the financial year 316,619 134,178 176,993 5,448 Surplus (deficit) for the year 6,330 6,330 0 0 Net asset revaluation increment (decrement) 49,055 0 49,055 0 Transfers to other reserves 0 (3,283) 0 3,283 Transfers from other reserves 0 1,919 0 (1,919) Balance at end of financial year 27 372,004 139,144 226,048 6,812
2007
Balance at beginning of the financial year 265,457 130,511 132,083 2,863 Surplus (deficit) for the year 6,252 6,252 0 0 Net asset revaluation increment (decrement) 44,910 0 44,910 0 Transfers to other reserves 0 (2,706) 0 2,706 Transfers from other reserves 0 121 0 (121) Balance at end of financial year 27 316,619 134,178 176,993 5,448
The above statement of changes in equity should be read with the accompanying notes.
3 Cash Flow Statement for the Year Ended 30 June 2008
2008 2007 Inflows/ Inflows/ (Outflows) (Outflows) Note $’000 $’000
Cash flows from operating activities Rates 19,091 17,492 Statutory fees and fines 988 948 User charges (inclusive of GST) 10,682 11,209 Grants (inclusive of GST) 13,658 11,360 Contributions (inclusive of GST) 2,369 1,511 Interest (inclusive of GST) 907 522 Other Receipts (inclusive of GST) 447 353 Payments to suppliers (inclusive of GST) (18,131) (17,750) Payments to employees (17,687) (16,132) Other payments (1,079) (843) Net cash flows provided by (used in) operating activities 28 11,245 8,670
Cash flows from investing activities Payments for property, plant and equipment, infrastructure (10,272) (6,514) Proceeds from sale of property, plant and equipment, infrastructure 2,230 523 Capitalised employee expenses (367) (332) Proceeds from trust deposits 178 0 Repayment of loans and advances from community organisations 0 8 Net cash provided by (used in) investing activities (8,231) (6,315)
Cash flows from financing activities Proceeds from interest bearing loans and borrowings 2,000 2,000 Repayment of interest bearing loans and borrowings (1,202) (1,134) Net cash provided by (used in) financing activities 798 866
Net increase (decrease) in cash and cash equivalents 3,812 3,221 Cash and cash equivalents at the beginning of the financial year 10,536 7,315 Cash and cash equivalents at the end of the financial year 29 14,348 10,536
Financing arrangements 30
Restrictions on cash and cash equivalents 31
The above cash flow statement should be read with the accompanying notes.
4 Notes to the Financial Report for the year ended 30 June 2008
Introduction (a) The Warrnambool City Council was established by an Order of the Governor in Council on 20 September 1994. The Council’s main office is located at 25 Liebig Street Warrnambool.
(b) The purpose of the Council is: - to provide for the peace, order and good government of its municipal district; - to promote the social, economic and environmental viability and sustainability of the municipal district; - to ensure that resources are used efficiently and effectively and services are provided in accordance with the Best Value Principles to best meet the needs of the local community; - to improve the overall quality of life of people in the local community; - to promote appropriate business and employment opportunities; - to ensure that services and facilities provided by the Council are accessible and equitable; - to ensure the equitable imposition of rates and charges; and - to ensure transparency and accountability in Council decision making.
External Auditor - Auditor-General of Victoria Internal Auditor - RSM Bird Cameron Solicitors - Tait Leishman Taylor Bankers - Commonwealth Bank Website address - www.warrnambool.vic.gov.au
This financial report is a general purpose financial report that consists of an Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1989, and the Local Government (Finance and Reporting) Regulations 2004.
Note 1 Significant accounting policies
(a) Basis of accounting This financial report has been prepared on the accrual and going concern basis.
This financial report has been prepared under the historical cost convention, except where specifically stated in notes 1(s) and 1(t).
Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation and disclosure has been made of any material changes to comparatives.
All entities controlled by Council that have material assets or liabilities, such as Special Committees of Management, have been included in this financial report. All transactions between these entities and the Council have been eliminated.
(b) Change in accounting policies
There has been no change in Council’s accounting policies from the previous year.
5 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) (c) Revenue recognition
Rates, grants and contributions Rates, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over the assets comprising these receipts.
Control over assets acquired from rates is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.
A provision for doubtful debts on rates has not been established as unpaid rates represents a charge against the rateable property that will be recovered when the property is next sold.
Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.
Income is recognised when the Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Council and the amount of the contribution can be measured reliably.
Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in note 5. The note also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year.
A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided at balance date.
User fees and fines User fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs.
A provision for doubtful debts is recognised when collection in full is no longer probable.
Sale of property, plant and equipment, infrastructure The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.
Interest and rents Interest and rents are recognised as revenue on a proportional basis when the payment is due, the value of the payment is notified, or the payment is received, whichever first occurs.
Dividends Dividend revenue is recognised when the Council’s right to receive payment is established.
6 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) (d) Depreciation and amortisation of property, plant and equipment, infrastructure Buildings, land improvements, plant and equipment, infrastructure and other assets having limited useful lives are systematically depreciated over their useful lives to the Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually. Where infrastructure assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component. Road earthworks are not depreciated. Artworks are not depreciated. Straight line depreciation is charged based on the residual useful life as determined each year. Major depreciation periods used are listed below and are consistent with the prior year unless otherwise stated:
Period Property buildings 60 years Plant and equipment plant, machinery and equipment 3 - 10 years fixtures, fittings and furniture 2 - 25 years Infrastructure roads road pavements 15 - 80 years road seal - concrete 50 years road formation - asphalt 25 years road formation - flush 10 - 15 years road kerb and channel 10 - 15 years bridges 60 - 100 years footpaths 50 - 100 years drainage - pipes and tunnels 30 - 50 years drainage - pits 80 - 100 years playground equipment 5 - 25 years parking meters 13 - 20 years other structures 5 - 100 years
(e) Repairs and maintenance Routine maintenance, repair costs, and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold the cost is capitalised and depreciated. The carrying value of the replaced asset is expensed.
(f) Borrowing costs Borrowing costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Except where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised. 7 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) Borrowing costs include interest on bank overdrafts, interest on borrowings, and finance lease charges.
(g) Recognition and measurement of assets
Acquisition The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the amount for which the asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.
Where assets are constructed by Council, cost includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.
The following classes of assets have been recognised in note 21. In accordance with Council’s policy, the threshold limits detailed below have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year:
Threshold $’000 Property land 0 buildings 5 Plant and equipment plant, machinery and equipment 1 fixtures, fittings and furniture 1 computers 1 Infrastructure roads road pavements and seals 5 road kerb and channel 5 bridges 5 footpaths 5 drainage 1 playground equipment 1 parking meters 1 other infrastructure 5
Revaluation Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment are measured at their fair value, being the amount for which the assets could be exchanged between knowledgeable willing parties in an arms length transaction. At balance date, the Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the class of asset was revalued.
In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis ranging from 2 to 4 years. The valuation is performed either by experienced council officers or independent experts. 8 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.
Land under roads The Council has elected not to recognise land under roads as an asset in accordance with AASB 1045 “Land under Roads”, which extends the requirement to recognise and measure land under roads as an asset of Council until 30 June 2009.
(h) Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts.
(i) Investments Investments, other than investments in associates, are measured at cost.
(j) Accounting for investments in associates Council’s investment in associates is accounted for by the equity method as the Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in the Council’s share of the net assets of the entities. The Council’s share of the financial result of the entities is recognised in the income statement.
(k) Tender deposits Amounts received as tender deposits and retention amounts controlled by Council are recognised as Trust funds until they are returned or forfeited (refer to note 24).
(l) Employee benefits
Wages and salaries Liabilities for wages and salaries and rostered days off are recognised and are measured as the amount unpaid at balance date and include appropriate oncosts such as workers compensation and payroll costs.
Annual leave Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date. Annual leave expected to be paid within 12 months is measured at nominal value based on the amount, including appropriate oncosts, expected to be paid when settled. Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.
9 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) Long service leave Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment, on settlement, and experience of employee departure per year of service. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.
Classification of employee benefits An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the period. This would include all annual leave and unconditional long service leave entitlements.
Superannuation A liability is recognised in respect of Council’s present obligation to meet the unfunded obliga- tions of defined benefit superannuation schemes to which its employees are members. The liability is defined as the Council’s share of the scheme’s unfunded position, being the differ- ence between the present value of employees’ accrued benefits and the net market value of the scheme’s assets at balance date.
The superannuation expense for the reporting year is the amount of the statutory contribution the Council makes to the superannuation plan which provides benefits to its employees to- gether with any movements (favourable/unfavourable) in the position of any defined benefits schemes. Details of these arrangements are recorded in note 32.
(m) Leases
Operating leases Lease payments for operating leases are recognised as an expense in the years in which they are incurred as this reflects the pattern of benefits derived by the Council.
(n) Allocation between current and non-current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next twelve months, being the Council’s operational cycle, or if the Council does not have an unconditional right to defer settlement of a liability for at least 12 months after the reporting date.
(o) Website costs Costs in relation to websites are charged as an expense in the period in which they are incurred.
10 Notes to the Financial Report for the year ended 30 June 2008
Note 1 Significant accounting policies (cont.) (p) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(q) Impairment of assets At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.
(r) Rounding Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars.
(s) Non-current assets held for sale A non-current asset held for sale is measured at the lower of its carrying amount and fair value less costs to sell.
(t) Investment property Investment property is held for capital appreciation and changes to fair value are recorded in the income statement as other income. Investment property is measured initially at cost, including transaction costs. After initial recognition, investment property is carried at fair value, determinied annually by independent valuers.
(u) Inventories Inventories held for distribution are measured at cost adjusted when applicable for any loss of service potential.
11 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 2 Rates and charges $’000 $’000
Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipal district. The CIV of a property is its imputed market value. The valuation base used to calculate general rates for 2007/08 was $4.323 billion (2006/2007 $4.208 billion). The 2007/08 rate in the CIV dollar was $0.002742 (2006/07 $0.002567).
General rates 10,004 9,162 Waste management charge 3,043 2,712 Commercial rates 2,764 2,442 Municipal charge 2,242 2,061 Industrial rates 840 789 Urban farm rates 307 290 Cultural and recreational land rates 38 36 19,238 17,492
The date of the general revaluation used for rating purposes within the municipal district for 2007/08 financial year was 1 January 2006.
The date of the latest general revaluation of land for rating purposes within the municipal district is 1 January 2008, and the valuation will be first applied in the rating year commencing 1 July 2008.
Note 3 Statutory fees and fines Parking fines 270 265 Animal control 150 156 Town planning and building 316 304 Health and local laws 185 137 Permits and certificates 67 86 988 948
Note 4 User fees Property management 419 473 Indoor aquatic centre 1,482 1,509 Child care services fees 1,666 1,848 Multi purpose sports stadiums 550 510 Cultural centres 939 685 Regulatory control 835 748 Tourism and promotion 2,165 1,591 Foreshore holiday parks 1,719 1,565 Saleyards 1,011 1,030 Aged services fees 849 820 Other fees and charges 391 346 12,026 11,125 12 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 5 Grants – Grants were received in respect of the following: $’000 $’000 Recurrent Victoria Grants Commission - unallocated 2,450 2,292 Victoria Grants Commission - local roads 497 473 Port operations 162 81 Family day care 747 854 Employment initiatives 137 108 Economic development 142 113 Family and children 2,833 2,089 Aged services 2,004 1,822 Recreation 56 95 Cultural centres 188 180 Rural access 342 262 Migration programs 169 204 Environmental initiatives 100 147 School crossing supervision 63 63 National competition policy 9 0 Pension rebate 461 430 Other 144 210 Total recurrent 10,504 9,423
Non-recurrent Commonwealth Government - roads to recovery 161 401 Physical services 2,613 793 Tourism & cultural programs 192 56 General recreation 75 162 Environmental initiatives 41 451 Other 72 74 Total non-recurrent 3,154 1,937
Conditions on grants Grants recognised as revenue during the year that were obtained on condition that they be expended in a specified manner that had not occurred at balance date were: Health and environment 0 450 Infrastructure 920 429 Tourism & cultural programs 69 30 Healthy communities 63 41 Family and community 247 60 Community Building 102 0 City Development 90 0 Organisation Development 19 0 1,510 1,010 Grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were: Health and environment 450 43 Infrastructure 429 270 Healthy communities 41 113 Family and community 60 12 Tourism & cultural programs 30 0 1,010 438
Net increase(decrease) in restricted assets resulting from grant revenues for the year: 500 572 13 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 6 Contributions $’000 $’000 (a) Cash Roads 1,128 1,755 Drainage 1,001 118 Recreation and cultural facilities 215 237 Other 135 262 2,479 2,372 (b) Non-monetary assets Roads 394 2,066 Drainage 210 1,080 Footpaths 104 312 Land 203 0 Other 28 1 939 3,459
Total 3,418 5,831
Note 7 Other revenue Interest 907 539 Physical services 47 21 Recreation & cultural programs 73 28 Family and community 59 26 Reimbursements 126 131 Other 148 130 1,360 875
Note 8 Employee benefits Wages and salaries 16,093 14,805 Workcover 411 372 Superannuation 1,396 1,275 17,900 16,452 Note 9 Materials and services Infrastructure services 5,296 3,115 Waste management 1,986 1,802 Recreation and cultural services 2,616 2,416 Child care program 707 719 Family day care 983 1,135 Corporate services 3,200 3,206 Tourism and promotion 2,617 1,403 Aged services 805 657 Foreshore caravan parks 594 760 Saleyards 468 349 Health and local laws 227 209 Other 226 1,663 19,725 17,434
Note 10 Bad and doubtful debts Other debtors 145 16 145 16 14 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 11 Depreciation and amortisation $’000 $’000
Property Buildings 1,692 1,594 Plant and equipment Plant, machinery and equipment 496 538 Furniture and fittings 353 680 Computers 66 80 Infrastructure Road bases 1,511 1,157 Road seals 706 634 Kerb and channel 437 357 Footpaths 457 452 Drainage 372 354 Bridges 107 112 Playground equipment 77 71 Parking meters 65 63 Other infrastructure 604 409 6,943 6,501
Note 12 Finance costs Interest - borrowings 462 400 462 400
Note 13 Other expenses Councillors’ allowances 137 128 Operating lease rentals 221 202 Other 259 230 617 560
Note 14 Net gain(loss) on disposal of property, plant and equipment, infrastructure Proceeds from sale of land and buildings 1,459 0 Proceeds from sale of plant and equipment 779 523 WDV of land and buildings sold (388) 0 WDV of plant and equipment sold (453) (514) 1,397 9
Note 15 Investment in associates
Investments in associates accounted for by the equity method are: - Corangamite Regional Library Corporation 692 660 - Warrnambool Childrens Centre 34 23 726 683
15 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Corangamite Regional Library Corporation $’000 $’000
Background Warrnambool City Council in conjunction with Colac Otway Shire, Corangamite Shire Council and Moyne Shire Council have an interest in the Corangamite Regional Library Corporation. The Library services much of the population of the South West Victoria and Warrnambool City Council currently has a 37.04% equity interest (36.76% in 2006/07).
Council’s share of accumulated surplus (deficit) Council’s share of accumulated surplus (deficit) at start of year (121) (81) Reported surplus (deficit) for year 26 (40) Council’s share of accumulated surplus (deficit) at end of year (95) (121)
Council’s share of reserves Council’s share of reserves at start of year 781 768 Transfer (to) from reserves 6 13 Council’s share of reserves at end of year 787 781
Movement in carrying value of specific investment Carrying value of investment at start of year 660 687 Share of surplus (deficit) for year 26 (40) Distributions received 6 13 Carrying value of investment at end of year 692 660
Warrnambool Childrens Centre
Background Warrnambool City Council has a joint venture operation for the construction (since complete) and operation of a child care facility. Warrnambool City Council has a 50% participating interest in this joint venture.
Council’s Share of Accumulated Surplus (Deficit) Council’s share of accumulated surplus (deficit) at start of year 23 21 Reported surplus (deficit) for year 11 2 Council’s share of accumulated surplus (deficit) at end of year 34 23
Note 16 Cash and cash equivalents Cash on hand 27 12 Cash at bank 1,561 3,001 Short term deposits 12,760 7,523 14,348 10,536
16 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 17 Trade and other receivables $’000 $’000 Current Rates debtors 587 440 Non-rate debtors 2,475 1,258 Provision for doubtful debts (64) (12) Loans and advances 49 32 Net GST receivable 475 360 3,522 2,078
Non-Current Loans and advances 221 174 221 174 Total 3,743 2,252
Note 18 Other assets Current Prepayments 239 299 Accrued income 1,008 898 1,247 1,197
Note 19 Inventories Inventories for distribution 3 52 Inventories held for sale 96 98 99 150 Note 20 Assets held for sale At fair value at 30 June 2004 0 388 0 388
Note 21 Property, plant and equipment, infrastructure
Summary At cost 48,759 39,576 Less accumulated depreciation (12,296) (11,256) 36,463 28,320
At fair value 437,349 384,797 Less accumulated depreciation (105,333) (97,351) 332,016 287,446 Total 368,479 315,766
Property
Land At fair value as at 30 June 2007 0 109,466 At fair value as at 30 June 2008 150,062 0 Total land 150,062 109,466
17 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 21 Property, plant and equipment, infrastructure (cont’d) $’000 $’000 Buildings At cost 15,353 14,284 Less accumulated depreciation (1,157) (919) 14,196 13,365
At fair value as at 30 June 2007 0 36,190 Less accumulated depreciation 0 (3,823) 0 32,367
At fair value as at 30 June 2008 43,517 0 Less accumulated depreciation (5,277) 0 38,240 0 Total buildings 52,436 45,732
Total property 202,498 155,198
Valuation of land and buildings were undertaken by Mr L. Speed, AAPI (Val), Contract Valuer engaged by Warrnambool City Council. The valuations of land is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. The valuation of buildings is at fair value based on current replacement cost less accumulated depreciation at the date of valuation. All freehold land reserved for public open space is valued at a discount of 30% percent to market value based on legal precedents.
Infrastructure Road bases At cost 2,242 450 Less accumulated depreciation (9) 0 2,233 450 At fair value as at 30 June 2007 117,063 117,063 Less accumulated depreciation (42,927) (41,509) 74,136 75,554 Road seals At cost 1,340 1,141 Less accumulated depreciation 0 0 1,340 1,141
At fair value as at 30 June 2007 0 14,759 Less accumulated depreciation 0 (8,453) 0 6,306
At fair value as at 30 June 2008 19,491 0 Less accumulated depreciation (11,777) 0 7,714 0 Kerb & channel At cost 374 73 Less accumulated depreciation (7) 0 367 73
At fair value as at 30 June 2007 26,249 26,174 18 Less accumulated depreciation (12,092) (11,662) 14,157 14,512 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 21 Property, plant and equipment, infrastructure (cont’d) $’000 $’000 Footpaths At cost 2,340 1,497 Less accumulated depreciation (56) (26) 2,284 1,471 At fair value as at 30 June 2004 22,978 22,874 Less accumulated depreciation (14,545) (14,118) 8,433 8,756 Drainage At cost 4,389 1,791 Less accumulated depreciation (81) (15) 4,308 1,776 At fair value as at 30 June 2005 33,563 33,352 Less accumulated depreciation (9,971) (9,664) 23,592 23,688 Bridges At cost 187 187 Less accumulated depreciation (3) 0 184 187 At fair value as at 30 June 2004 7,615 7,615 Less accumulated depreciation (2,694) (2,590) 4,921 5,025 Playground equipment At cost 1,970 1,756 Less accumulated depreciation (1,051) (975) 919 781 Parking meters At cost 914 878 Less accumulated depreciation (584) (519) 330 359 Other infrastructure At cost 4,963 3,400 Less accumulated depreciation (200) (115) 4,763 3,285 At fair value as at 30 June 2004 10,490 11,012 Less accumulated depreciation (6,050) (5,532) 4,440 5,480
Works in progress At cost 816 1,240 816 1,240
Total infrastructure 154,937 150,084
Valuation of infrastructure assets has been determined by Mr Darren Lynch CPA, Manager of Assets with Warrnambool City Council. The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation. 19 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 21 Property, plant and equipment, infrastructure (cont’d) $’000 $’000
Plant and equipment Plant and equipment At cost 6,918 6,040 Less accumulated depreciation (2,783) (2,739) 4,135 3,301
Furniture & fittings At Cost 5,658 5,647 Less accumulated depreciation (5,268) (4,917) 390 730
Computers At cost 1,225 1,178 Less accumulated depreciation (1,097) (1,031) 128 147
Paintings & exhibits At cost 70 14 At valuation as at 1 January 2004 6,293 6,292 At valuation as at 30 June 2008 28 0 6,391 6,306
Paintings and exhibits consist of Paintings, Other Exhibits and items in the Reference Collection. The valuation was carried out by Charles Nodrum, Approved Valuer for the Cultural Gifts Program based on market value.
Total plant and equipment 11,044 10,484
Total property, plant and equipment, infrastructure 368,479 315,766
20 Notes to the Financial Report for the year ended 30 June 2008 year Balance financial at end of down Written Written value of disposals & (Note 11) amortisation Transfers Deprecation
assets (Note 6) Non-cash contributed expenses employee Capitalised (Note 27) increments Revaluation (decrements) funded - council of assets Acquisition year beginning of financial LandBuildingsRoad BasesRoad SealsKerb & Channel 109,466Footpaths 45,732DrainageBridges 309Playground Equipment 76,004 0Parking Meters 14,585 7,447Other Infrastructure 7,851 40,303 996 in ProgressWorks 10,227 283 1,301 781 25,464 2 0Plant & Equipment 8,765 816 202 0 5,212 895 359 2,483Furniture & Fittings 1,240 0Computers 203 956Paintings & Exhibits 0 230 17 0 34 0 626 0 3,301 0 0 90 235 219 730 100 0 1,783 28 6,306 13 0 0 44 (1,692) 75 0 554 13 0 147 22 33 104 56 210 0 0 0 (1,511) 18 0 2 0 0 (706) 52,437 47 (123) 0 0 0 150,062 (437) 71 76,369 0 0 0 (22) 0 0 0 (457) 0 (372) 51 9,054 0 0 (1,050) (77) 0 0 0 14,524 0 0 (603) 0 0 0 0 0 10,718 28 (107) 27,900 0 (65) 0 919 0 0 0 0 (496) 9,202 0 0 (453) 5,105 816 (353) 330 0 4,135 0 0 (66) 0 390 0 6,390 128 Property PropertyTotal Infrastructure 155,198 309 48,154 2 203 325 Property, Total Infrastructure, Plant and (1,692)Equipment 0 202,499 315,766 9,905 49,049 369 939 (9) (6,942) (598) 368,479 2008 Balance at Total InfrastructureTotal Plant and Equipment 150,084 Plant and EquipmentTotal 7,697 10,484 895 1,899 367 0 708 (334) 0 (4,335) (145) 28 154,937 0 (915) (453) 11,043 Note 21 plant and equipment, infrastructure (cont’d) Property, 21 Notes to the Financial Report for the year ended 30 June 2008 year Balance financial at end of down Written Written value of disposals & (Note 11) amortisation Transfers Depreciation assets (Note 6) Non-cash contributed expenses employee Capitalised (Note 27) increments Revaluation (decrements) funded - council of assets Acquisition year beginning of financial LandBuildingsRoad BasesRoad SealsKerb & ChannelFootpaths 46,648 82,465DrainageBridgesPlayground Equipment 60,590 0 0Parking Meters 12,277 6,509Other Infrastructure 366 in ProgressWorks 27,001 581 10,187 1,046 731 72 24,108 14,865Plant & Equipment 0 7,293 179 115 5,137 2,247 0 385Furniture & Fittings 524 0 30 624Computers 1,436Paintings & Exhibits 187 0 32 1 0 1,290 1,123 0 0 95 3,093 0 1,401 0 345 1,346 0 0 431 53 97 6,090 1 6 0 0 99 9 92 (1,157) (1,594) 195 0 312 13 0 1,080 0 0 0 0 5 (33) 3 0 32 0 (357) 0 76,004 (634) 0 203 0 0 45,732 7 0 0 0 0 109,466 353 0 0 (452) 0 0 (354) 0 (510) 14,585 0 (71) 0 (409) 0 7,447 0 0 0 0 (112) 0 0 10,227 0 0 (63) 25,464 0 0 8,765 781 0 0 0 (538) 0 0 5,212 (600) 1,240 (680) 359 0 3,301 0 0 (80) 0 730 0 6,306 147 2007 Balance at Property PropertyTotal Infrastructure 129,113 0 27,582 InfrastructureTotal Plant and Equipment 0 127,841 0 Plant and EquipmentTotal 5,080 Property, Total 97 17,112 10,779Infrastructure, Plant and Equipment (1,594) 1,400 332 0 3,458 203 155,198 (97) 267,733 0 (3,609) 6,480 (33) 44,897 0 150,084 332 0 3,458 (1,298) (600) 0 10,484 (6,501) (633) 315,766 Note 21 plant and equipment, infrastructure (cont’d) Property, 22 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 22 Other assets $’000 $’000 (a) Investment property Land and buildings at beginning of financial year 0 388 Additions 00 Transfer to land held for sale 0 (388) Land and buildings at end of financial year 0 0
Rental income from investment property 0 27 Direct operating expenses: Investment property generating rental income 0 53
(b) Freehold land held as inventory at cost 561 174
561 174
Note 23 Trade and other payables Trade payables 3,570 2,178 Net GST payable 213 126 Accrued expenses 62 58 3,845 2,362
Note 24 Trust funds and deposits Refundable developer deposits 650 505 Refundable landscaping deposits 244 230 Contract retention amounts 84 89 Other refundable deposits 31 7 1,009 831
Note 25 Provisions Annual and Long Total Other Leave Service Leave 2008 $’000 $’000 $’000
Balance at beginning of the financial year 1,468 2,195 3,663 Additional provisions 1,333 610 1,943 Amounts used (1,211) (519) (1,730) Increase in the discounted amount arising because of time and the effect of any change in the discount rate 000 Balance at the end of the financial year 1,590 2,286 3,876
2007
Balance at beginning of the financial year 1,286 2,057 3,343 Additional provisions 1,217 477 1,694 Amounts used (1,035) (339) (1,374) Increase in the discounted amount arising because of time and the effect of any change in the discount rate. 000 Balance at the end of the financial year 1,468 2,195 3,663
23 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 (a) Employee benefits $’000 $’000
Current Annual leave 1,572 1,457 Long service leave 1,873 1,611 Other 18 11 3,463 3,079
Non current Long service leave 413 584
Aggregate carrying amount of employee benefits: Current 3,463 3,079 Non-current 413 584 3,876 3,663
The following assumptions were adopted in measuring the present value of long service leave and retirement gratuity:
Weighted average increase in employee costs 4.20% 4.00% Weighted average discount rates 6.48% 6.36% Weighted average settlement period 8 years 11 years
(i) Current All annual leave and the long service leave entitlements representing 7 or more years of: - Short-term employee benefits, that fall due within 12 months after the end of the period 1,590 1,868 - Other long-term employee benefits, that do not fall due within 12 months after the end of the period 1,873 1,211 3,463 3,079
(ii) Non-Current Long service leave representing less than 7 years of continuous services measured at present value. 413 584
Note 26 Interest-bearing loans and borrowings
Current Borrowings - secured 1,415 1,202
Non-current Borrowings - secured 7,054 6,469
Total 8,469 7,671
The maturity profile for Council’s borrowings is: Not later than one year 1,415 1,203 Later than one year and not later than five years 4,642 4,795 Later than five years 2,412 1,673 8,469 7,671 24 Notes to the Financial Report for the year ended 30 June 2008
Balance at Increment Balance at end beginning (decrement) of reporting of reporting period period
Note 27 Reserves $’000 $’000 $’000 (a) Asset revaluation reserve
2008 Property Land 80,669 40,302 120,971 Buildings 22,939 7,851 30,790 103,608 48,153 151,761
Infrastructure Roads 41,688 896 42,584 Plant & Equipment 1,785 0 1,785 Other Infrastructure 28,943 0 28,943 Corangamite Regional Library Corporation 764 6 770 Furniture, Fittings, Computers & Artworks 205 0 205 73,385 902 74,287
Total Asset Revaluation Reserve 176,993 49,055 226,048
2007 Property Land 53,668 27,001 80,669 Buildings 22,358 581 22,939 76,026 27,582 103,608
Infrastructure Road Pavements 26,823 14,865 41,688 Plant & Equipment 1,785 0 1,785 Other Infrastructure 26,696 2,247 28,943 Corangamite Regional Library Corporation 751 13 764 Furniture, Fittings & Computers 2 203 205 56,057 17,328 73,385
Total Asset Revaluation Reserve 132,083 44,910 176,993
(b) Other Reserves
2008 Asset replacement reserve 2,351 0 2,351 Main drainage fund 2,268 168 2,436 Committed reserve 188 1,008 1,196 Heritage restoration fund 30 2 32 Insurance claims reserve 61 29 90 Information technology reserve 120 60 180 Art gallery reserve 394 78 472 Resort and recreation reserve 36 19 55 Total Other Reserve 5,448 1,364 6,812 25 Notes to the Financial Report for the year ended 30 June 2008
Balance at Increment Balance at end beginning (decrement) of reporting of reporting period period
Note 27 Reserves (cont.) $’000 $’000 $’000 2007 Asset replacement reserve 1,425 926 2,351 Main drainage fund 0 2,268 2,268 Committed reserve 927 (739) 188 Heritage restoration fund 26 4 30 Insurance claims reserve 36 25 61 Information technology reserve 60 60 120 Art gallery reserve 344 50 394 Resort and recreation reserve 45 (9) 36 Total Other Reserve 2,863 2,585 5,448
Corangamite Regional Library Reserve recognises the fair value of revalued assets in this library.
Note 28 Reconciliation of cash flows from operating activities 2008 2007 to surplus (deficit) $’000 $’000
Surplus (deficit) for the period 6,330 6,252
Depreciation/amortisation 6,943 6,501 (Profit)/loss on disposal of property, plant & equipment, infrastructure (1,397) (9) Non cash contributions (939) (3,459) Written down value of disposed assets 145 133 Decrement/(increment) in joint venture interests (43) 25
Change in assets and liabilities: (Increase)/decrease in trade & other receivables (1,491) 101 (Increase)/decrease in prepayments 60 (154) (Increase)/decrease in accrued income (110) (861) Increase/(decrease) in trade & other payables 1,479 (123) (Increase)/decrease in inventories 51 (54) Increase/(decrease) in provisions 213 320 (Decrease)/increase in accrued interest expense 4 (2)
Net cash provided by/(used in) operating activities 11,245 8,670
Note 29 Reconciliation of cash and cash equivalents Cash and cash equivalents (see note 16) 14,348 10,536
Note 30 Financing arrangements Bank overdraft facility 200 200 Used facilities 00 Unused facilities 200 200
26 Notes to the Financial Report for the year ended 30 June 2008
Note 31 Restricted assets Council has cash and cash equivalents (note 16) that are subject to restrictions. As at the reporting date, Council had legislative restrictions in relation to employee entitlements (Long Service Leave).
Long Service Leave (note 25) 1,815 1,868 Reserve Funds (note 27) 55 36 1,870 1,904
Restricted assets for long service leave is based on the Local Government (Long Service Leave) Regulations 2002 and does not necessarily equate to the long service leave liability disclosed in note 25 due to a different basis of calculation prescribed by the regulation.
Note 32 Superannuation Council makes employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in profit or loss when they are due. The Fund has two categories of membership, each of which is funded differently. The Fund’s accumulations category, Vision Super Saver, receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9% required under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund. From 1 July 2008 employers are required to pay superannuation guarantee contributions based on Ordinary Time Earnings (OTE) which may put upward pressure on contribution levels.
The Fund’s Defined Benefit Plan is a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided under Paragraph 32 (b) of AASB 119, Council does not use defined benefit accounting for these contributions.
Council makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s actuary as at 31 December 2005, the Trustee has determined that the current funding arrangements are adequate for the expected Defined Benefit Plan liabilities. Council makes the following contributions:
- 9.25% of members’ salaries (same as previous year); - the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contributions tax (same as previous year).
27 Notes to the Financial Report for the year ended 30 June 2008
Note 32 Superannuation (cont.)
The Fund’s liability for accrued benefits was determined in the 30 June 2007 actuarial review pursuant to the requirements of Australian Accounting Standard AAS25 as follows: 30 June 2007 $’000
Net Market Value of Assets 4,102,154 Accrued Benefits (per accounting standards) 3,923,436 Difference between Assets and Accrued Benefits 178,718 Vested Benefits 3,572,589
The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were:
Net Investment Return 8.0% Salary Inflation 5.5% Price Inflation 3.0%
2008 2007 Details of contributions to superannuation funds during $’000 $’000 the year and contributions payable at 30 June are as follows:
Fund
Defined benefit plans
Employer contributions to Local Authorities Superannuation Fund (Vision Super) 326 339
Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date 00
Accumulation funds
Employer contributions to Local Authorities Superannuation Fund (Vision Super) 1,069 936
28 Notes to the Financial Report for the year ended 30 June 2008
Note 33 Commitments The Council has entered into the following commitments
No later than 1 Later than 1 Later than 2 Later than 5 Total year year and years and years not later not later than 2 years than 5 years
$’000 $’000 $’000 $’000 $’000
2008
Operating Recycling 920 957 1,990 0 3,867 Waste Collection 693 721 1,499 0 2,913 Security 180 0 0 0 180 Internal Audit 60 0 0 0 60 Cleaning Services 444 0 0 0 444 Meals on Wheels 250 0 0 0 250 Total 2,547 1,678 3,489 0 7,714
Capital Roads 0 0 0 0 0 Drainage 0 0 0 0 0 Land & Buildings 464 212 0 0 676 Other 198 0 0 0 0 Total 464 212 0 0 676
2007
Operating Recycling 460 480 1,500 0 2,440 Waste Collection 1,200 1,240 3,700 0 6,140 Security 75 78 253 0 406 Valuations 111 116 356 0 583 Internal Audit 50 0 0 0 50 Cleaning Services 90 0 0 0 90 Meals on Wheels 159 0 0 0 159 Total 2,145 1,914 5,809 0 9,868
Capital Roads 1,210 0 0 0 1,210 Drainage 1,500 0 0 0 1,500 Total 2,710 0 0 0 2,710
29 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 Note 34 Operating lease commitments $’000 $’000 At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use within Council’s activities (these obligations are not recognised as liabilities):
Not later than one year 210 161
Later than one year and not later than five years 341 284 Later than five years 0 1 551 446
Note 35 Contingent liabilities and contingent assets
The Council is unaware of any issues at balance date that would give rise to a contingent liability. The Council acts as guarantor in respect of bank loans provided to the following clubs and community groups:
Original 2008 2007 Loan $’000 $’000 $’000 (i) City Memorial Bowls Club Commonwealth Bank 2,000 1,121 1,266
(ii) Warrnambool Football Club National Australia Bank 400 47 112
(iii) Warrnambool Returned Services Club Westpac 250 252 246
(iv) South Rovers Football Club National Australia Bank 80 8 19
(v) Old Collegians Football Club Westpac 80 26 27
(vi) Warrnambool Surf Life Savings Club ANZ Bank 100 92 30
2,910 1,546 1,700
30 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments
(a) Accounting policy, terms and conditions
Financial Note Accounting Policy Terms and Conditions Instruments
Financial Assets
Cash and cash 16 Cash on hand and at bank and money On call deposits returned a floating equivalents. market call account are valued at face interest rate of between 6.37% and value. 8.19% (6.00% to 6.48% in 2006/07). The interest rate at balance date was Interest is recognised as it accrues. 7.85% (6.40% in 2006/07).
Investments and bills are valued at cost.
Investments are held to maximise interest returns of surplus cash.
Interest revenues are recognised as they accrue.
Trade and other 17 Rates are carried at nominal amounts Rates are payable by four installments receivables. due plus interest. Rate debts are a during the year. Arrears, including charge attached to the rateable land deferred rates, attract interest. The and are recoverable on sale, therefore, interest rate was 12% (11.5% in no provision for doubtful debts is made. 2006/07) at balance date for general Interest rates are reviewed annually. rates. Interest rates charged for Special Rate and Private Street Schemes was 12% at balance date (11.5% in 2006/07).
Other debtors 17 Receivables are carried at nominal General debtors are unsecured, amounts due less any provision for are generally not subject to interest doubtful debts. A provision for doubtful charges and credit terms are based on debts is recognised when collection in 30 days. full is no longer probable.
Collectibility of overdue accounts is assessed on an ongoing basis.
31 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
Financial Note Accounting Policy Terms and Conditions Instruments
Financial Liabilities
Trade and other 23 Liabilities are recognised for amounts General Creditors are unsecured, payables to be paid in the future for goods and not subject to interest charges and services provided to Council as at are normally settled within 30 days of balance date whether or not invoices invoice receipt. have been received.
Interest-bearing 26 Loans are carried at their principal Borrowings are secured by way of loans and amounts, which represent the present mortgages over the general rates of borrowings value of future cash flows associated the Council. with servicing the debt. Interest is accrued over the period it becomes The weighted average interest rate on due and recognised as part of borrowings was 6.83% during 2007/08 payables. (6.4% in 2006/07).
Finance leases are accounted for at As at balance date Council did not their principle amount with the lease have any finance leases. payments discounted to present value using the interest rates implicit in the leases.
Bank overdraft 30 Overdrafts are recognised at the The overdraft is subject to annual principal amount. Interest is charged review. No overdraft facility was as an expense as it accrues. utilised during the 2007/08.
32 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
(b) Interest rate risk
The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:
Fixed interest maturing in:
Floating 1 year or Over More Non- Total interest less 1 to 5 than 5 interest rate years years bearing 2008 $’000 $’000 $’000 $’000 $’000 $’000
Financial Assets Cash and Cash Equivalents 1,588 12,760 0 0 0 14,348 Receivables - Other 0 587 0 0 2,886 3,473 Loans & Advances 0 49 141 80 0 270 Accrued Income 0 0 820 0 188 1,008 Prepayments 0 0 0 0 239 239 Total Financial Assets 1,588 13,396 961 80 3,313 19,338
Weighted average interest rate 6.93% 7.93% 7.10% 7.00%
Financial Liabilities Trade & Other Payables 0 0 0 0 3,845 3,845 Trust Funds & Deposits 0 0 0 0 1,009 1,009 Interest-Bearing Loans & Borrowings 0 1,415 4,642 2,412 0 8,469 Total Financial Liabilities 0 1,415 4,642 2,412 4,854 13,323
Weighted average interest rate 6.54% 6.57% 7.52%
Net Financial Assets (Liabilities) 1,588 11,981 (3,681) (2,332) (1,541) 6,015
33 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
(b) Interest rate risk
The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:
Fixed interest maturing in:
Floating 1 year or Over More Non- Total interest less 1 to 5 than 5 interest 2007 rate years years bearing $’000 $’000 $’000 $’000 $’000 $’000
Financial Assets Cash and Cash Equivalents 3,013 7,523 0 0 0 10,536 Receivables - Other 0 0 0 0 1,606 1,606 Loans & Advances 0 40 55 111 0 206 Accrued Income 0 0 0 0 898 898 Prepayments 0 0 0 0 299 299 Total Financial Assets 3,013 7,563 55 111 2,803 13,545
Weighted average interest rate 5.94% 6.94% 7.10% 6.71%
Financial Liabilities Trade & Other Payables 0 0 0 0 2,362 2,362 Trust Funds & Deposits 0 0 0 0 831 831 Interest-Bearing Loans & Borrowings 0 1,203 4,795 1,673 0 7,671 Total Financial Liabilities 0 1,203 4,795 1,673 3,193 10,864
Weighted average interest rate 6.50% 6.23% 6.14%
Net Financial Assets(Liabilities) 3,013 6,360 (4,740) (1,562) (390) 2,681
34 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
(c) Net fair values
The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:
Total carrying Aggregate net amount as per fair value Balance Sheet 2008 2007 2008 2007 Financial Instruments $’000 $’000 $’000 $’000
(1) Financial Assets Cash and Cash Equivalents 14,348 10,536 14,348 10,536 Receivables - Other 3,473 1,606 3,473 1,606 Loans & Advances 270 206 270 206 Accrued Income 1,008 898 1,008 898 Prepayments 239 299 239 299 Total Financial Assets 19,338 13,545 19,338 13,545
(2) Financial Liabilities Trade & Other Payables 3,845 2,362 3,845 2,362 Trust Funds & Deposits 1,009 831 1,009 831 Interest-Bearing Loans & Borrowings 8,469 7,671 8,415 7,824 Total Financial Liabilities 13,323 10,864 13,269 11,017
(d) Credit risk
The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Balance Sheet.
(e) Risks and mitigation
The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. Market risk Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. The Council’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below. Interest rate risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk.
Our loan borrowings are sourced from major Australian banks by a tender process. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our net debt portfolio by: - ensuring access to diverse sources of funding; - reducing risks of refinancing by managing in accordance with target maturity profiles; and - setting prudential limits on interest repayments as a percentage of rate revenue.
35 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
We manage the interest rate exposure on our net debt portfolio by appropriate budgeting strategies and obtaining approval for borrowings from the Australian Loan Council each year. Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. We manage interest rate risk by adopting an investment policy that ensures: - conformity with State and Federal regulations and standards, - adequate safety, - appropriate liquidity, - diversification by credit rating, financial institution and investment product, - monitoring of return on investment, - benchmarking of returns and comparison with budget. Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.
Credit risk
Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us to make a financial loss. We have exposure to credit risk on all financial assets included in our balance sheet. To help manage this risk: - we have a policy for establishing credit limits for the entities we deal with; - we may require collateral where appropriate; and - we only invest surplus funds with financial institutions which have a recognised credit rating specified in our investment policy.
Trade and other receivables consist of a large number of customers, spread across the consumer, business and government sectors. Credit risk associated with the Council’s financial assets is minimal because the main debtor is the Victorian Government. Apart from the Victorian Government we do not have any significant credit risk exposure to a single customer or groups of customers. Ongoing credit evaluation is performed on the financial condition of our customers and, where appropriate, an allowance for doubtful debts is raised.
We may also be subject to credit risk for transactions which are not included in the balance sheet, such as when we provide a guarantee for another party. Details of our contingent liabilities are disclosed in note 35.
Liquidity risk Liquidity risk includes the risk that, as a result of our operational liquidity requirements: - we will not have sufficient funds to settle a transaction on the date; - we will be forced to sell financial assets at a value which is less than what they are worth; or - we may be unable to settle or recover a financial assets at all.
To help reduce these risks we: - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; - have readily accessible standby facilities and other funding arrangements in place; - have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid instruments; - monitor budget to actual performance on a regular basis; and - set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue.
The Councils exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.
36 Notes to the Financial Report for the year ended 30 June 2008
Note 36 Financial instruments (cont.)
(f) Sensitivity disclosure analysis
Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from Federal Bank of Australia): - A parallel shift of +2% and -1% in market interest rates (AUD) from year-end rates of 8%.
The table below discloses the impact on net operating result and equity for each category of financial instruments held by the Council at year-end, if the above movements were to occur.
Interest rate risk
Market risk exposure Carrying -1% 2% amount 100 basis points 200 basis points subject to interest Profit Equity Profit Equity 2008 $’000 $’000 $’000 $’000 $’000 Financial assets: Cash and cash equivalents 14,348 (144) (144) 287 287 Other financial assets 1,090 (11) (11) 22 22 Trade and other receivables 587 (6) (6) 12 12 Financial liabilities: Interest-bearing loans and 8,469 (85) 85 169 169 borrowings
2008 2007 $’000 $’000 Note 37 Auditors’ remuneration Audit fee to conduct external audit - Victorian Auditor-General 34 28 Internal audit fees - RSM Bird Cameron 61 69 95 97
Note 38 Events occurring after balance date There were no events occurring after balance date which impact upon the balances shown in these financial statements.
Note 39 Related party transactions
(i) Responsible persons Names of persons holding the position of a Responsible Person at the Council at any time during the year were:
Councillors Councillor David Atkinson (Mayor) Councillor Jack Daffy Councillor Jacinta Ermacora Councillor Andrew Fawcett Councillor Adrian Jacobs Councillor Michael Neoh Councillor Glenys Phillpot
Chief Executive Bruce Anson (4/1/2008 to 30/6/2008) Lindsay Merritt (1/7/2007 to 3/1/2008) 37 Notes to the Financial Report for the year ended 30 June 2008 2008 2007 $’000 $’000 Note 39 Related party transactions (cont.) (ii) Remuneration of responsible persons
The numbers of Responsible Officers, whose total remuneration from 2008 2007 Council and any related entities fall within the following bands: No. No.
$10,000 - $19,999 6 5 $20,000 - $29,999 0 1 $30,000 - $39,999 0 1 $40,000 - $49,999 1 0 $90,000 - $99,999 1 0 $120,000 - $129,999 1 0 $200,000 - $209,999 0 1 9 8
$’000 $’000
Total Remuneration for the reporting year for Responsible Persons included above amounted to: 348 337
(iii) Retirement benefits No retirement benefits have been made by the Council to a Responsible Person during the reporting year (2006/07 Nil).
(iv) Loans No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting year (2006/07 Nil).
(v) Other transactions
No transactions other than remuneration payments or the reimbursement of approved expenses were entered into by Council with Responsible Persons, or Related Parties of such Responsible Persons during the reporting year (2006/07 Nil).
(vi) Senior officers remuneration A Senior Officer other than a Responsible Person, is an officer of Council who has management responsibilities and reports directly to the Chief Executive Officer or whose total annual remuneration exceeds $100,000.
The number of Senior Officers other than the Responsible Persons, are shown below in their relevant income bands:
2008 2007 No. No. Income Range: $100,000 - $109,999 2 1 $120,000 - $129,999 0 1 $130,000 - $139,999 1 1 $140,000 - $149,999 2 2 5 5
$’000 $’000
Total Remuneration for the reporting year for Senior Officers included above 38 amounted to: 636 660 Notes to the Financial Report for the year ended 30 June 2008 Community Development City Growth Total Services Infrastructure Corporate Strategies 3,064 2,826 3,638 2,590 6,415 5,626 542 318 13,659 11,360 24,138 20,21627,202 5,765 23,0420 7,196 9,403 9,7860 5,92418,855 12,339 5,663 11,2890 9,1320 (10,350) 3,890 4,432 (1,632)0 3,156 3,4740 (1,645) 53,376 39,717 47,591 36,231 240 (530) (1,272)0 6,330 6,252 (8,347) (13,910) (19,753) (11,418) (13,984) (11,265) (4,962) (4,746) (47,046) (41,339) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 191,229 140,142 154,937 150,042 29,878 27,875 13,446 1,400 389,490 331,146 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 INCOME Grants Other TOTAL EXPENSES SURPLUS/(DEFICIT) FOR THE YEAR TO ASSETS ATTRIBUTED FUNCTIONS/ACTIVITIES* Assets have been attributed to functions/activities based on the control and/or custodianship of specific assets. * Note 40Assets by Function/Activities Revenue, Expenses and 39 Notes to the Financial Report for the year ended 30 June 2008
Note 40 Income, expenses and assets by function/activities (cont.)
Corporate Strategies
The Corporate Strategies Division is responsible for providing a range of strategic and operational corporate services to business units and to the Council as a whole.
The Division includes the following Branches:
Financial Services Organisational Development Revenue & Property Information Technology Services Media & Marketing
City Infrastructure
The City Infrastructure Division is responsible for providing and maintaining a broad range of infrastructure, physical operations, planning and regulatory services to the wider community.
The Division includes the following Branches:
Infrastructure Services Capital Works & Projects Health & Local Laws Building Services
Community Development The Community Development Division promotes and enhances community wellbeing through programs, advocacy, service provision and community partnerships.
The Division includes the following Branches:
Community Support Family Services Recreation & Cultural Services Events & Promotion
City Growth
The City Growth Division promotes and enhances the local economy through the development, attraction and retention of businesses and major events.
The Division includes the following Branches:
Business Support Tourism Services Strategic Planning Planning Services 40 Notes to the Financial Report for the year ended 30 June 2008
Note 41 Financial ratios (performance indicators)
(a) Debt servicing ratio To identify the capacity of Council to service its outstanding debt.
2008 2008 2007 2007 2006 2006 $’000 (%) $’000 (%) $’000 (%)
Debt servicing costs 462 0.91% 400 0.84% 468 1.11% Total revenue 50,688 47,631 42,015
Debt servicing costs refer to the payment of interest on loan borrowings, finance lease and bank overdraft. The ratio expresses the amount of interest paid as a percentage of Council’s total revenue.
(b) Debt commitment ratio To identify Council’s debt redemption strategy.
2008 2008 2007 2007 2006 2006 $’000 (%) $’000 (%) $’000 (%)
Debt servicing & redemption costs 1,665 8.65% 1,534 8.77% 1,531 9.71% Rate revenue 19,238 17,492 15,770
The strategy involves the payment of loan principal and interest, finance lease principal and interest. The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.
(c) Revenue ratio To identify Council’s dependence on non-rate income.
2008 2008 2007 2007 2006 2006 $’000 (%) $’000 (%) $’000 (%)
Rate revenue 19,238 37.95% 17,492 36.72% 15,770 37.53% Total revenue 50,688 47,631 42,015
The level of Council’s reliance on rate revenue is determined by assessing rate revenue as a proportion of the total revenue of Council.
41 Notes to the Financial Report for the year ended 30 June 2008
Note 41 Financial ratios (performance indicators) (cont.)
(d) Debt exposure ratio To identify Council’s exposure to debt.
2008 2008 2007 2007 2006 2006 $’000 (%) $’000 (%) $’000 (%)
Total indebtedness 15,384 8.76% 12,659 9.38% 11,636 12.89% Total realisable assets 175,540 134,987 90,276
For the purposes of the calculation of financial ratios, realisable assets are those assets which can be sold and which are not subject to any restriction on realisation or use.
Any liability represented by a restricted asset (note 30) is excluded from total indebtedness.
The following assets are excluded from total assets when calculating Council’s realisable assets: land and buildings on Crown land; restricted assets; heritage assets; total infrastructure assets; and Council’s investment in associate.
This ratio enables assessment of Council’s solvency and exposure to debt. Total indebtedness refers to the total liabilities of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject to any restriction and are able to be realised. The ratio expresses the multiple of total liabilities for each dollar of realisable assets.
(e) Working capital ratio To assess Council’s ability to meet current commitments.
2008 2008 2007 2007 2006 2006 $’000 (%) $’000 (%) $’000 (%)
Current assets 19,216 197.45% 14,349 191.99% 9,753 133.66% Current liabilities 9,732 7,474 7,297
The ratio expresses the level of current assets the Council has available to meet its current liabilities.
42 Notes to the Financial Report for the year ended 30 June 2008
Note 42 (a) Capital expenditure Note 2008 2007 $’000 $’000 Capital expenditure areas Roads 4,044 2,556 Drainage 2,466 709 Footpaths 222 180 Parks & recreation 88 628 Buildings 1,120 856 Plant & equipment 1,715 1,435 Other 2,426 448 Total capital works 12,081 6,812
Represented by: Renewal of infrastructure 42(b) 6,070 4,322 Upgrade of infrastructure 42(c) 994 438 New infrastructure 5,017 1,604 Other 0 448 Total capital works 12,081 6,812
Infrastructure, property, plant and equipment movement The movement between the previous year and the current year in infrastructure, property, plant and equipment as shown in the Balance Sheet links to the net of the following items:
Total capital works 12,081 6,812 Gifted assets 6(b) 939 3,459 Asset revaluation movement 27(a) 49,055 44,910 Depreciation/amortisation 11 (6,943) (6,501) Written down value of assets sold 21 (598) (647) Net movement in infrastructure, property, plant and equipment 54,534 48,033
(b) Renewal Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time.
(c) Upgrade Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the council’s asset base.
(d) Expansion Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure which increases future operating and maintenance costs, because it increases council’s asset base, but may be associated with additional revenue from the new user group.
43 Notes to the Financial Report for the year ended 30 June 2008 1-Jul-08 Council date for ective. Application 2006 date of October Standard Application until the end of first reporting period provisions of this Standard, may elect instead not to recognise land under roads as an asset in the balance sheet . AAS 27, there will be no direct contained in impact on the financial report. by Local Governments to which this Standard is first applied, AASAmendments to andAAS 29A 27A, Under transitional provisions shall apply. AAS 31A those provisions, local governments, while encouraged to apply the full AAS 27 Financial Reporting From the beginning of reporting period AASB 1045 Land Under Roads: ending on or after 31 December 2007, AASB amendment Standards affected Outline of amendment AASB 2006-3 Amendments to Australian Accounting Standards AASB 1004 Contributions AAS 27 Financial Reporting As this Standard broadly reproduces the by Local Governments requirements relating to contributions 1-Jul-08 1-Jul-08 They have not been adopted in preparation of the financial statements at reporting date. The following Australian Accounting Standards have been issued or amended and are applicable to the Council but not yet eff Australian The following Note 43 Pending accounting standards 44 Notes to the Financial Report for the year ended 30 June 2008 Council date for Application date of 1-Jul-08 1-Jul-08 1-Jul-08 1-Jul-08 Standard Application In respect to land under roads acquired before 30 June 2008: allows a Council to elect to recognise or not an asset; requires any adjustment upon recognition to be made against accumulated surplus; requires a Council to disclose its accounting policy; allows a Council to elect adopt the fair value or a previous revaluation; requires any above as at 1 July elections to be made effective 2008. Requires that land under roads acquired after 30 June 2008 is accounted for in AASB 116. accordance with The impact of any changes that may be required cannot be reliably estimated and is not disclosed in the financial report. AAS 27, there will disclosures contained in be no direct impact on the financial report. As this Standard broadly reproduces the requirements relating to certain relevant AAS 27, there requirements contained in will be no direct impact on the financial report. by Local Governments requirements relating to disaggregated by Local Governments AAS 27 Financial Reporting Amendments to: AASB 3, AASB 5, AASB 3, Amendments to: AASB 114, AASB 101, AASB 8, AASB 137 AASB 127, AASB 116, AASB amendment Standards affected Outline of amendment AASB 1051Land Under Roads AAS 27 Financial Reporting by Local Governments AASB 1052Disaggregated Disclosures AASB 2007-9 AAS 27Amendments to Financial ReportingAustralian As this Standard broadly reproduces theAccounting Standards arising from the Review 1-Jul-08AASs 27, 29 and 31 of 1-Jul-08 Note 43 Pending accounting standards (cont.)
45 Certification of the Financial Report
In my opinion the accompanying financial statements have been prepared in accordance with the Local Government Act 1989, the Local Government (Finance and Reporting) Regulations 2004, Australian Accounting Standards and other mandatory professional reporting requirements.
Kevin Leddin, B.Bus. Principal Accounting Officer
Date : 9 September 2008 Warrnambool
In our opinion the accompanying financial statements present fairly the financial transactions of Warrnambool City Council for the year ended 30 June 2008 and the financial position of the Council as at that date. As at the date of signing, we are not aware of any circumstances which would render any particulars in the financial statements to be misleading or inaccurate. We have been authorised by the Council on the 4 August 2008 to certify the financial statements in their final form.
Jacinta Ermacora Councillor
Date : 9 September 2008 Warrnambool
Andrew Fawcett Councillor
Date : 9 September 2008 Warrnambool
WilliWilliam S MillMillard d Acting Chief Executive
Date : 9 September 2008 Warrnambool
46 Standard Statements for the year ended 30 June 2008
Note 1 Basis of Preparation of Standard Statements
Council is required to prepare and include audited Standard Statements within its Annual Report. Four Statements are required - a Standard Income Statement, Standard Balance Sheet, Standard Cash Flow Statement and a Standard Statement of Capital Works, together with explanatory notes. These statements and supporting notes form a special purpose financial report prepared to meet the requirements of the Local Government Act 1989 and Local Government (Finance and Reporting) Regulations 2004. The Standard Statements have been prepared on accounting bases consistent with those used for General Purpose Financial Statements and the Budget. The results reported in these statements are consistent with those reported in the General Purpose Financial Statements. The Standard Statements are not a substitute for the General Purpose Financial Statements. They have not been prepared in accordance with all Australian Accounting Standards or other authoritative professional pronouncements. The Standard Statements compare Council’s financial plan, expressed through its Budget, with actual performance. The Local Government Act 1989 requires explanation of any material variances. The Council has adopted a materiality threshold of ten per cent. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature. The budget figures included in the Statements are those adopted by Council on 25th June 2007. The Budget was based on assumptions that were relevant at the time of adoption of the Budget. The Council set guidelines and parameters for revenue and expense targets in this budget in order to meet council’s business plan and financial performance targets for both the short and long term. The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were not considered predictable. Detailed information on the actual financial results are contained in the General Purpose Financial Statements. The detailed budget can be obtained by contacting Council or through the Council’s website. The Standard Statements must be read with reference to these documents.
47 Standard Income Statement for the Year Ended 30 June 2008
Budget Actuals 2007/08 Variances Ref 2007/08 $’000 $’000 % $’000
Revenue
Rates and charges 19,163 75 0% 19,238 User charges, fees and fines 12,689 325 3% 13,014 Grants - recurrent 9,703 801 8% 10,504 Grants - non-recurrent 3,532 (378) (12%) 1 3,154 Contributions 315 2,164 87% 2 2,479 Other revenue 1,031 329 24% 3 1,360
Total revenue 46,433 3,316 7% 49,749
Expenses from ordinary activities
Employee benefits 17,305 595 3% 17,900 Materials and services 18,596 1,746 9% 20,342 Bad and doubtful debts 4 141 97% 4 145 Depreciation and amortisation 6,136 807 12% 5 6,943 Finance costs 462 0 0% 462
Total expenses 42,503 3,289 7% 45,792
Net (loss)/gain on disposal of assets 250 1,184 83% 6 1,434 Granted assets 1,800 (861) (92%) 7 939 Surplus (deficit) for the year 5,980 350 6% 6,330
48 Standard Income Statement for the Year Ended 30 June 2008
Variance Explanation Report
Ref Item Explanation
1 Grants - non-recurrent The deferral of some capital projects delayed the receipt of these projects grants.
2 Contributions Project delays from 2006/07 resulted in contributions for these works being delayed until 2007/08.
3 Other revenue Interest on investments exceeded expectations due to higher levels of cash reserves being held by Council throughout the year combined with higher than expected interest rate levels.
4 Bad and doubtful debts Two large debt write-offs were not anticipated in the budget.
5 Depreciation and amortisation Infrastructure asset revaluations from 2006/07 resulted in higher than expected depreciation charges in 2007/08.
6 Net (loss)/gain on disposal of The sale of the Fletcher Jones property was budgeted for in the prior year. assets
7 Granted assets There was a lower level of subdivision activity during the year.
49 Standard Balance Sheet as at 30 June 2008
Budget Actuals 2007/08 Variances Ref 2007/08 $’000 $’000 % $’000 Current assets Cash and cash equivalents 7,703 6,645 46% 8 14,348 Trade and other receivables 1,900 1,622 46% 9 3,522 Inventories 100 (1) (1%) 99 Other assets 192 1,055 85% 10 1,247 Total current assets 9,895 8,266 43% 19,216
Non-current assets Trade and other receivables 155 66 30% 9 221 Investments in associates accounted for using the equity method 695 31 4% 726 Property, plant and equipment, infrastructure 302,452 66,027 18% 11 368,479 Other assets 0 561 100% 12 561 Total non-current assets 303,302 66,124 18% 369,987 Total assets 313,197 74,390 19% 389,203
Liabilities Current liabilities Trade and other payables 2,700 1,145 30% 13 3,845 Trust funds and deposits 750 259 26% 14 1,009 Provisions 3,066 397 12% 15 3,463 Interest-bearing loans and borrowings 1,425 (10) (1%) 1,415 Total current liabilities 7,941 1,791 18% 9,732
Non-current liabilities Provisions 520 (107) (26%) 15 413 Interest-bearing loans and borrowings 7,044 10 0% 7,054 Total non-current liabilities 7,564 (97) (26%) 7,467 Total liabilities 15,505 1,694 10% 17,199
Net assets 297,692 72,696 372,004
Equity Accumulated surplus 142,795 (3,651) (3%) 139,144 Reserves 154,897 77,963 34% 16 232,860 Total equity 297,692 74,312 20% 372,004
50 Standard Balance Sheet as at 30 June 2008
Variance Explanation Report
Ref Item Explanation
8 Cash and cash equivalents A number of major capital works projects did not commence until later than anticipated.
9 Trade and other receivables A number of large contributions and grants were raised just prior to year end.
10 Other current assets A large works contribution was accrued at balance date.
11 Property, plant and equipment Revaluations of asset categories were higher than expected. infrastructure
12 Other assets A land purchase was negotiated after the budget was adopted.
13 Trade and other payables Major contract payments were accrued at year end.
14 Trust funds and deposits Bonded works were higher than expected.
15 Provisions Long service leave provision was adjusted from ten year entitlement to seven years in accordance with Council’s EA agreement.
16 Reserves The higher than expected asset revaluations increased reserve levels.
51 Standard Cash Flow Statement for the Year Ended 30 June 2008
Budget Actuals 2007/08 Variances Ref 2007/08 $’000 $’000 % $’000
Cash flows from operating activities Receipts from ratepayers and user (inclusive of GST) 32,245 1,338 4% 33,583 Payments to suppliers and staff (inclusive of GST) (35,659) (782) 2% (36,441) Receipts from government 13,551 107 1% 13,658 Interest received 493 414 46% 17 907 Interest payments (466) 4 (1%) (462) Net cash flows provided by (used in) operating activities 10,164 1,081 10% 11,245
Cash flows from investing activities Payments for property, plant and equipment, infrastructure (12,225) 1,953 (19%) 18 (10,272) Capitalised employee expenses (300) (367)
Proceeds from sale of property, plant and equipment, infrastructure 1,532 698 31% 19 2,230 Proceeds from trust deposits 0 178 100% 20 178 Net cash provided by (used in) investing activities (10,993) 2,651 (32%) (8,231)
Cash flows from financing activities Proceeds from interest bearing loans and borrowings 2,000 0 0% 2,000 Repayment of interest bearing loans and borrowings (1,203) 1 0% (1,202) Net cash provided by (used in) financing activities 797 1 0% 798
Net increase (decrease) in cash and cash equivalents (32) 3,733 98% 3,812 Cash and cash equivalents at the beginning of the financial year 7,734 2,802 27% 10,536 Cash and cash equivalents at the end of the financial year 7,702 6,535 46% 14,348
Reconciliation of surplus (deficit) and net cash flows from operating activities for the year ended 30 June 2008
Surplus (deficit) 5,981 349 6% 6,330
Depreciation/amortisation 6,136 807 12% 6,943 (Profit) loss on sale of property, plant and equipment, infrastructure (250) (1,147) 82% (1,397) Written down value of disposed assets 0 145 100% 145 Non cash contributions (1,800) 861 (92%) (939) Decrement (increment) in joint venture interests 0 (43) 100% (43) Net movement in current assets and liabilities 97 109 53% 206 10,164 1,081 13% 11,245
52 Standard Cash Flow Statement for the Year Ended 30 June 2008
Variance Explanation Report
Ref Item Explanation
17 Interest received Interest on investments exceeded expectations due to higher levels of cash reserves being held by Council throughout the year due to delayed capital works.
18 Payments for property, plant The delay in some capital projects resulted in a lowewr level of capital and equipment, infrastructure expenditure.
19 Proceeds from sale of Higher than expected sale proceeds from the Fletcher Jones site. property, plant and equipment, infrastructure
20 Proceeds from trust deposits Bonded works were higher than expected.
53 Standard Statement of Capital Works for the Year Ended 30 June 2008
Budget Actuals 2007/08 Variances Ref 2007/08 $’000 $’000 % $’000
Capital works areas Roads, streets and bridges 3,466 578 17% 21 4,044 Drainage 2,351 115 5% 2,466 Land and buildings 2,729 (1,609) (59%) 22 1,120 Footpaths 350 (128) (37%) 23 222 Plant and equipment 1,828 (113) (6%) 1,715 Playground equipment 70 18 26% 24 88 Parking meters 66 (10) (15%) 25 56 Computers 63 24 38% 26 87 Paintings and exhibits 15 2 13% 27 17 Other 2,052 214 10% 28 2,266 Total capital works 12,990 (909) 12,081
Represented by: Renewal of infrastructure 9,094 (3,024) (33%) 6,070 New infrastructure 3,895 2,116 54% 6,011 Total capital works 12,989 (908) 12,081
Property, plant and equipment, infrastructure movement reconciliation worksheet
The movement between the previous year and the current year in property, plant and equipment, infrastructure as shown in the Balance Sheet links to the net of the following items:
Total capital works 12,989 (908) (7%) 12,081 Gifted Assets 1,800 (861) (48%) 939 Asset revaluation movement 9,608 39,447 411% 49,055 Depreciation and amortisation 6,136 (13,079) (213%) (6,943) Written down value of assets sold (250) (348) 139% (598) Net movement in property, plant and equipment, infrastructure 30,283 24,251 54,534
54 Standard Statement of Capital Works for the Year Ended 30 June 2008
Variance Explanation Report
Ref Item Explanation
21 Roads streets and bridges The carry forward of Gateway road from the prior year resulted in actual expenditure exceeding the budget for 2007/08.
22 Land and buildings Delays in the Harbour Pavilion project resulted in an underspend of the budget.
23 Footpaths A major footpath project was delayed until 2008/09.
24 Playground equipment Project exceeded budget estimate.
25 Parking meters Awaiting items ordered but not delivered at balance date.
26 Computers Additonal hardware purchased throughout the year.
27 Paintings and exhibits Minor over expenditure.
28 Other Fully funded bus stop upgrades were completed but not budgeted for.
55 Certification of the Standard Statements
In my opinion the accompanying standard statements have been prepared on an accounting bases consistent with the financial statements and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004.
Kevin Leddin, B.Bus. Principal Accounting Officer
Date : 9 September 2008 Warrnambool
In our opinion, the accompanying standard statements have been prepared on an accounting bases consistent with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. As at the date of signing, we are not aware of any circumstances which would render any particulars in the standard statements to be misleading or inaccurate. On the 4 August 2008 we were authorised by Warrnambool City Council to certify the standard statements in their final form on behalf of Warrnambool City Council.
JiJacinta EErmacora Councillor
Date : 9 September 2008 Warrnambool
Andrew Fawcett Councillor
Date : 9 September 2008 Warrnambool
William S Millard Acting Chief Executive
Date : 9 September 2008 Warrnambool 56 57 58 Performance Statement for the Year Ended 30 June 2008
Activities /Initiatives Key Strategic Activities Performance Targets & Measures Actual Results – Comments Ref No.
1.03.02 1 Complete Stage 1 inputs Undertake a comprehensive A comprehensive community from a range of community community engagement process as engagement process was stakeholders and sources part of the development of the Council undertaken including Council between October 2007 Plan 2008-2012. Meetings in the community, a – March 2008. range of surveys, a photography competition and community meetings.
Complete preparation The Council Plan 2008 – 2012 of the updated Council was adopted on 23 June 2008. Plan (including statutory processes) to enable adoption by Council not later than 30 June 2008.
2.01.01 2 Council seeking Ministerial Preparation and completion of Extensive research was authorisation of planning Planning Scheme amendment relating undertaken into the feasibility of scheme amendment for to the proposed Allansford Business the Allansford Industrial Business rezoning of the “North Park Park including a geotechnical Parcel” by end September report obtained in June 2008. In 2007. July 2008 Council determined to abandon the project.
4.11.02 Lodge RIDF and Section Ongoing facilitation of the 193 (LGA) applications establishment of the Allansford relating to Stage 1 Joint Industrial Business Park, including Municipal Economic Regional Infrastructure Development Development Initiative by Fund and Section 193 (LGA) January 2008. applications being submitted to the Victorian Government.
2.01.02 3 Council seeking Ministerial Incorporate Stage 1 amendments Council has not achieved the authorisation of planning recommended by Dennington North target date and expects to scheme amendment and North East Warrnambool structure have rezoning amendments for relating to the Dennington plans into the Planning scheme. North East Warrnambool and North growth area by Dennington on exhibition August 2007. in September 2008.
Council seeking Ministerial authorisation of planning scheme amendment relating to the North East Warrnambool growth area by December 2007.
2.04.02 4 Satisfactorily prepare the Preparation of Development Council has finalised Developer Development Contribution Contribution Plan(s) for priority growth Contribution Plans for Plan(s) in order to meet areas which considers drainage and Dennington and for North East performance targets for road infrastructure and overall public Warrnambool. Consultation with Key Strategic Activity open space provision. stakeholders will be conducted in No. 3. September 2008.
59 Performance Statement for the Year Ended 30 June 2008
Activities /Initiatives Key Strategic Activities Performance Targets & Measures Actual Results – Comments Ref No.
2.11.01 5 Report to Council by Establish a comprehensive sustainable Council has commenced an March 2008 relating to environment management plan for the environment management plan an updated environment City. and has undertaken extensive management plan for the community consultation. The City. draft plan will be presented to Council in October 2008.
3.01.01 6 Report to Council by Complete “Warrnambool 2015” – a Council endorsed the December 2007 relating to strategic planning project to inform Warrnambool Recreation Plan the completed Recreation the planning and provision of Council 2007 – 2017 in January 2008. A Plan “Warrnambool 2015”. recreation services over at least the number of initiatives have been next decade. included in Councils 2008/09 Budget to implement priority recommendations from the Plan.
3.08.04 7 Complete organisational Participate in second-stage The Warrnambool City Council services planning and State-funded arrangements relating developed a Regional Migration related decisions by end to the attraction/retention of skilled Strategy and received funding September 2007 for migrants in the region. from the State Government’s Council’s prospective Regional Migration Incentive participation within the Fund (RMIF) to implement Victorian Skilled Migration the strategy over a three year Strategy 2008-2011. period ending June 2007. RMIF was part of the Victorian Government’s Skilled Migration Program – the Global Skills for Provincial Victoria (GSPV) program has replaced RMIF and Warrnambool City Council has been successful in securing a further two years’ funding.
3.02.01 8 By end June 2007 Warrnambool Cultural Precinct Council is currently completing Council to review the Revitalisation Plan (Stage 2, a revised design and costing for candidate components and Warrnambool Entertainment Centre the project concept design based provisional scope/budget. redevelopment) – finalise funding around a revised timeframe for arrangements and the budget/scope project implementation. for the prospective project.
3.02.02 By end July 2007 funding Complete and submit funding An application to the applications to funding applications to identified funding Commonwealth Government partners to be completed/ partners for the Warrnambool was unsuccessful as the new submitted, based on an Entertainment Centre redevelopment Government replaced the identified upper-limit net project. regional funding program. cost to Council. A draft funding application was presented to the Stage Government and further negotiations were held regarding the timing and quantum of its support for the project. Local philanthropic trusts have committed $725,000 to the project. 60 Performance Statement for the Year Ended 30 June 2008
Activities /Initiatives Key Strategic Activities Performance Targets & Measures Actual Results – Comments Ref No.
4.04.02 9 Commencement of Establish a camp kitchen facility at Commenced construction on the construction for the camp Surfside Holiday Park. camp kitchen facility in April with kitchen facility by April expected completion by August 2008. 2008.
4.09.02 10 Commence exhibition Completion and implementation of the Warrnambool Retail Strategy of the relevant planning Warrnambool Retail Strategy (2007). was adopted by Council on 18 scheme amendment by December 2007. The City Centre mid September 2007. Structure Plan commenced in February 2008 with the aim of implementing the Retail Strategy.
Exhibition of the planning scheme amendment will occur in September 2008.
4.12.03 11 Council to reach a decision Finalisation of the Fletcher Jones The Fletcher Jones property on tenders received for the property sale process. was sold on with owners taking sale of the property by end possession in December 2007. August 2007.
5.02.04 12 Complete Morris Road Complete Morris Road main drainage Completed Morriss Road main main drain works by and commence Harrington Road main drain in April 2008. The majority September 2007 and drainage measures. of work was completed by complete pre-construction December 2007 with some minor activities for Harrington pavement reinstatement works Road main drainage and clean up being carried out measures by February during the maintenance period. 2008.
Consultants Cardno were employed to develop a preliminary design for the Harrington Road Drainage Basin which was completed by February 2008. Cardno is now finalising the detailed design of the Harrington Road main drain and basin in anticipation of going to tender.
Notes to the Performance Statement for the Year Ended 30 June 2008 Introduction to Performance Statement Section 127 of the Local Government Act 1989 includes the requirement for a Budget to contain “seperately identified Key Strategic Activities to be undertaken during the financial year and performance targets and measures in relation to each Key Strategic Activity”. Sections 131(1)(d) and 132(2) of the Act also require the performance statement component of the Annual Report to include the actual results achieved for the relevant Key Strategic Activities, having regard to the stated performance targets and measures. 61 Approval of the Performance Statement for the Year Ended 30 June 2008 In our opinion, the accompanying Performance Statement of Warrnambool City Council is presented fairly in accordance with Section 132 of the Local Government Act 1989. The Statement outlines the seperately identified Key Strategic Activities contained in the Budget under Section 127 of the Local Government Act 1989 and describes the actual results achieved in the financial year. As at the date of signing, we are not aware of any circumstances which would render any particulars in the financial report to be misleading or inaccurate. On 4 August 2008 we were authorised by Warrnambool City Council to approve the Performance Statement in its final form on behalf of Warrnambool City Council.
Jacinta Ermacora Councillor
Date : 9 September 2008 Warrnambool
Andrew Fawcett Councillor
Date : 9 September 2008 Warrnambool
William S Millard Acting Chief Executive
Date : 9 September 2008 Warrnambool
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