Mount Buller and Mount Stirling Alpine Resort Manag ement Board Annual Report 2015–16 Contents Overview Message from the Chairman 1 Entity Information 3 Year at a Glance 4 Organisational Structure Board of Directors 6 Resort Management Team 9 Organisational Chart 11 Strategic Direction and Operations Introduction 12 Our Services 14 Our Environment 17 Our Tourism 20 Our Community 22 Our People 24 Our Corporate Governance 26 Financial Statements 2015–16 Financial Statements 31 Notes to Financial Statements 36 Independent Auditors Report 74 Disclosure Index 76 In accordance with the Financial Management Act 1994, I am pleased to present the Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report for the year ending 31 December 2016. Jaqueline Jennings Chairman Mount Buller and Mount Stirling Alpine Resort Management Board 3 March 2017 Annual Report 2015–16 1 Message from the Chairman The 2016 snow season delivered outstanding visitation with Mt Buller welcoming 317,891 visitors for a total of 449,157 visitor days. This result put Mt Buller’s visitors in the mountain. A number of the resorts during 2015-16. The at 5% above 2015 and 19% above Master Plan projects have already ‘Living Bin’ organics management the 10-year average. Visitor been completed as part of the system continued to recover good numbers at Mount Stirling finished first phases, including Athletes’ amounts of food waste, reducing marginally lower than 2015, with Walk, Black Forest Walk, the the amount of waste going into 6,041 visitors across the 2016 Resort Reception and Interpretive landfill. The Mountain Pygmy- winter compared to 6,161 the Centre at Alpine Central, the possum program continued previous winter, however finished redevelopment of the YHA now with monitoring for the year the season 17% above the 10 year Buller Central site, along with indicating very strong growth in average for visitors and a huge the complete renovation and the population with the highest 34% above the 10-year average for extension to Village Square Plaza. numbers ever recorded, and the visitor days, reflecting the success Additionally, the next stage of eradication of the noxious plant in promoting Mt Stirling’s unique the implementation phase has Orange Hawkweed is imminent. backcountry experience. begun with the commencement of In the green season, detailed analysis that will underpin Across the 2015-16 period, Mt Buller continues to lead the the more strategic projects such initiatives to improve the visitor way as Australia’s premier as the development of world class experience were undertaken mountain bike destination, and in snow play facilities at Horse Hill, and implemented for the winter addition to welcoming a continually the Valley North car parking season. These included continued growing number of guests each facility and the Horse Hill to efficiency enhancements to Resort summer season, in December Village gondola. Entry processes, addressing wait 2015 hosted the second Australian time issues experienced during In winter 2016 Mt Buller was proud Mountain Bike Summit. This peak arrival times as a result of to continue its role as host of unique event dedicated to the unprecedented growth in day Victorian Interschools Snowsports mountain bike industry saw a visitation. In addition, a substantial Championships and the South strong contingent of domestic capital works program was Australian Schools Snowsports and international speakers completed, with a strong focus events. Critical to the development and delegates come together on improving public amenity of junior snowsports competitors to discuss the latest issues across both resorts. and enthusiasts, these events and trends facing the industry. are a successful partnership Summer events continue to drive The Mount Buller Resort between Resort Management, visitation, with significant events Master Plan is now well into Buller Ski Lifts, Mt Buller Chamber including the Targa High Country its implementation phase and of Commerce and the Mt Buller motor racing event (which has continues to guide the resort’s Ratepayers Association. been secured through to 2022), development over the next bringing thousands of visitors to 10–15 years, as well as providing Innovative and best practice the mountains outside of the core confidence for individual environmental management winter period. stakeholders to commit investment programs continued to benefit Continued over the page 2 Key financial data 2014–15 2015–16 Change ‘000 ‘000 ‘000 Net Result 1,339 371 (968) Total operating expenditure 12,765 15,241 2,476 Gas and electricity 769 798 29 Finance costs 91 84 (7) (Gain)/loss on disposal of assets 19 (23) (42) Health 249 257 8 Depreciation 1,808 2,274 (466) Staff costs 3,929 4,776 847 Cash on hand 4,493 4,406 (87) Overview In the coming year, along with The role of the Resort In addition, I wish to acknowledge delivering a comprehensive Management team involves, the support and dedication capital works program, we will among other things, attempting to provided by the Resort continue the planning and design satisfy the desire, expectations and Management team. Their hard of a supplementary water storage needs of its many stakeholders work and dedication has allowed facility at Mount Buller, with and in that regard I would like the organisation to deliver some construction works on this key to acknowledge the input and outstanding results and to infrastructure project hoped to support of the Department of distinguish itself as a leader in be able to be commenced in the Environment, Land, Water and alpine resort management. near future. The new water storage Planning, the Department of facility will ensure the security of Economic Development, Jobs, both potable and snowmaking Transport and Resources, Buller water on Mount Buller for the Ski Lifts, the Mount Buller Chamber coming years. of Commerce, the Mount Buller Ratepayers Association, Stirling Additional development of Experience, and many others initiatives and events to encourage in this endeavour. year-round visitation will continue, Jacqueline Jennings while securing the winter economic Chairman engine of the resorts through Mount Buller and Mount Stirling enhancement of Mount Buller Alpine Resort Management Board and Mount Stirling winter product offerings, services and brands. Annual Report 2015–16 3 Entity Information The Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) is a statutory authority established by the Alpine Resorts (Management) Act 1997 and responsible to the Minister for Environment, Climate Change and Water. The RMB was established in 2004 by Statutory Reporting — Develop a tourism and an amendment to the Alpine Resorts The RMB is a statutory authority. marketing strategy for and (Management) Act 1997 (The Act), The responsible Ministers during to promote the Resorts, and succeeding the separate Mount the 2015–16 reporting period were: collect and expend voluntary Buller Resort Alpine Management contributions from commercial — The Hon Lisa Neville MP, Board and the Mount Stirling Alpine undertakings in the Resorts for Minister for Environment, Resort Management Board. The this purpose; Climate Change and Water for RMB is charged under the Act with the period from 1 November — Provide a range of services managing the Mount Buller and 2015 to 22 May 2016; and . in the nature of: garbage Mount Stirling Alpine Resorts. disposal, water supply: recycled — The Hon Lily D’Ambrosio MP, and potable, sewerage, gas, The RMB operates under the Minister for Energy, Environment drainage, roads, fire protection provisions of the Act and is and Climate Change from 23 and snowmaking. established: May 2016 to 31 December 2016. — Charge contributions for the — As a Body Corporate with The Minister is responsible for provision of those services; perpetual succession; Crown Land management and — Collect fees prescribed by the — With its own Common Seal; delegates their authority to the Regulations for the Resorts; — With the power to sue or be sued; RMB to implement Government policy in relation to the use and — Attract investment for the — To acquire, hold and dispose of management of the alpine resort. improvement of the Resorts; real and personal property; and — Carry out any other function to carry out its functions as a The RMB accepts directions conferred on the RMB under Body Corporate may do at law. or guidelines from the Minister the Act or any other Act; regarding its performance and The object of the Alpine the discharge of its functions, — Plan for the development, Resorts (Management) duties or power and undertakes to promotion, management and Act 1997 adopt best practice in all activities, use of the Resorts; The object of this Act is to reporting to the Minister through — Manage the Resorts in make provision in respect of the Annual Reports, the Corporate accordance with the objective alpine resorts: Plan and Quarterly Financial of the Act as amended; Reports. The RMB also complies — Undertake research into — for the development, promotion, with the directions of the Minister alpine resort issues; management and use of for Finance and acts as a referral — Contribute to and support the the resorts on a sustainable authority for development matters. basis and in a manner that operation of the ARCC; is compatible with the alpine Functions of the RMB — Prepare and implement a environment, having regard to As set out in Section 38 of the Strategic Management Plan environmental and ecological Act, the specific functions of the for the Resorts; and considerations (in particular, RMB are to: — Expend or apply revenue of climate change) economic — Act as a Committee of the RMB in accordance with a considerations, and cultural Management of any direction of the Minister under heritage considerations (in Crown Land deemed to be Section 36(1A) of the Act. particular, Indigenous cultural permanently reserved under heritage considerations); and The RMB must carry out its the Crown Land (Reserves) functions in an environmentally — for the use of the resorts Act 1978 in the Resorts; sound way.