WELCOME TO CITY COUNCIL ANNUAL REPORT 2017-18

Welcome to Wollongong City Council’s Annual Report 2017-18. This report provides a summary of our performance over the 2017-18 financial year against the actions in the Annual Plan 2017-18 and the five year actions in the Delivery Program 2012-17 (revised 17 February 2014).

HOW TO READ THIS DOCUMENT The annual report comprises five main sections. The first section provides an overview of our city and Council, including the Lord Mayor and General Manager messages, and an overview of major capital works projects and financials. Pages 3-18. The main body of the report contains two sections: Strategic Programs and Strategic Goals. Both sections provide an overview of our performance during 2017-18 toward achieving the five year Strategic Programs and Delivery Program Actions. Pages 19-67. The fourth section of this report presents our detailed financial statements, including General Purpose Statements and Special Purpose Statements. Attachment A-C The last section of the report provides additional information on legislative requirements not covered in the main body of the report. Attachment D-E

HOW TO OBTAIN A COPY OF THIS DOCUMENT A copy of this annual report and various other Council publications is available on our website (www.wollongong.nsw.gov.au). If you would like a hard copy of this report, contact the Executive Strategy Unit by telephone 4227 7111 or write to: Executive Strategy Unit Wollongong City Council Locked Bag 8821, Wollongong DC NSW 2500

Hard copies of this report are also available for viewing in Council libraries and community centres.

CONTENTS

Community Vision and Values 2 Financial Reports Wollongong Community Profile 3 Lord Mayor’s Message 5 Attachment A: Financial Commentary General Manager’s Message 6 Attachment B: General Purpose Financial Our Council 7 Statements Major Capital Works Projects 2017-18 9 Attachment C: Special Purpose Financial Financial Overview 11 Statements Five Year Summary of Key Statistics 13 Organisational Leadership 17 Local Government Requirements Integrated Planning and Reporting Framework 18 Attachment D: Additional Local Government Act Requirements Strategic Programs Attachment E: Payment of Expenses and Provision Financial Sustainability 19 of Facilities to Lord Mayor and West Dapto Urban Release 20 Councillors Waste Management 21 City Centre Revitalisation 23 Connectivity/Walkability 24

Community Strategic Goals Goal 1: We value and protect our environment 25 Goal 2: We have an innovative and sustainable economy 33 Goal 3: Wollongong is a creative, vibrant city 40 Goal 4: We are a connected and engaged community 47 Goal 5: We have a healthy community in a liveable city 54 Goal 6: We have sustainable, accessible and affordable transport 63

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MESSAGE FROM THE LORD MAYOR

It gives me great pleasure to report on the 2017-18 I’m excited to say, this year the Wollongong Botanic financial year and what your Council has delivered for Garden was the first garden in to receive the benefit of our community in this time. Conservation Practitioner Accreditation from Botanic Gardens Conservation International for their innovative Our city is growing and becoming increasingly vibrant work. We received this accolade for monitoring and and enticing as a place to live, work and play. propagating the rare Banksia Vincentia and the 1,000 Our focus from 2011 onwards to achieve financial specimens of the critically endangered Bomaderry sustainability has been successful and this has allowed Zieria our staff nurtured at the Garden’s workshop. us to invest more than $96 million in capital work Conservation is also a key theme in the city’s first projects across 2017-18. Last financial year we Urban Greening Strategy, adopted in December 2017. completed or began more than 600 projects across the This is an ambitious plan to double the green canopy city as part of the largest capital works program this over our city suburbs from Windang to Helensburgh by Council has embarked on. 2046. This strategy will guide us on a clear path to cater What we are doing will have an impact now, and into for rising urban temperatures, as well as help us make the future. In West Dapto, we completed Stage 1 of the our city liveable with a greater urban tree canopy. Fowlers Road extension and continued to develop work We continue to plan and manage a city that is diverse, on access to the West Dapto urban release area. One vibrant, and provides healthy and accessible choices of Council’s biggest tenders was recently awarded for for all community members. the construction of a bridge over the Mullet Creek floodplain and the rail corridor. This link road, from I take this opportunity to thank all Council staff, under Fowlers Road to Fairwater Drive, will provide flood- the leadership of David Farmer, who bring these reliable access for community members in this fast projects and services to life each week for our growing area. We expect West Dapto will continue to community members. grow into a series of integrated communities that will include 19,500 new homes, house more than 56,000 people and create eight towns and village centres when complete. Wollongong City Lord Mayor We finished a wide range of projects across all parts of Councillor Gordon Bradbery AM the city, such as the refurbishment of the ageing Cringila Community Hall and the updates to amenities at Western Suburbs Pool, Unanderra. At the pool, which is more than 40 years old, we rebuilt the amenities and installed energy and water efficient fittings and fixtures. This facility is just one of 20 examples where we’ve been able to introduce energy and water efficiency measures into Council buildings over the past year. We also commenced work on 48 projects in parks, gardens and sports fields throughout the city. This includes work on our first synthetic pitch at Ian McLennan Park, Kembla Grange; fencing and site screens around Figtree Oval; as well as accessible fitness equipment at MM Beach Port Kembla.

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MESSAGE FROM THE GENERAL MANAGER

This 2017-18 Annual Report summarises our ongoing While the historic tramway link was a key project for work to meet and deliver on the targets and strategic 2017-18, it wasn’t alone. Last year we continued work direction set out in our Community Strategic Plan. on Stage 1 of the Fowlers Road extension to Fairwater Drive and the Grand Pacific Walk, while at Whytes Gully This year, we worked with our community to check in we invested $5.3 million in new cell construction to and review progress towards our agreed goals and respond to our city’s waste needs into the future. There ten-year vision for Wollongong, and provide an was also the opening of the Community Recycling updated Community Strategic Plan, Our Wollongong Centre, which provides a space to drop off household 2028. items such as batteries, fluorescent lights and paint, Overwhelmingly, the community agreed that the six recycling or safe disposal. goals decided by our community and Council in 2012 We’ve continued to invest in footpaths and cycle ways are still the benchmarks you want us to focus on, and with some $22.5 million spent on works including an our plans including our delivery programs and upgrade to Stanwell Park’s commercial area and new operational plans are moving us in the right direction footpaths in Mulda Street, Dapto. to achieve those goals through a myriad of projects, initiatives and events. Financially we have worked Away from construction, we’ve delivered our free New hard over the past six years to ensure our budget is Year’s Eve, Australia Day, Viva la Gong and Moonlight sustainable and can support these plans. Movies events and continued to invest in our city centre’s activation program to bring people into a safe, On the infrastructure front we have continued to vibrant and engaging CBD. This mix of social and invest substantially, and in record amounts, on the cultural activities continues to be a high priority for renewal and upgrade of existing assets and the Council, as they contribute to the liveability of our city. construction and purchase of new assets. These events help set us apart from other cities. One of our key milestones for this financial year was On a personal note, I would like to extend my thanks to the completion of the refurbishment of the Blue Mile all Council staff for their ongoing focus on delivering Tramway Seawall and Shared Path. This multimillion great outcomes for the community every day. Their dollar project of the popular heritage pathway energy, passion and enthusiasm for making between Belmore Basin and North Wollongong Wollongong an enviable place to live, work and play Beach was finished in June and was a complex and now, and into the future, is to be commended. detailed job. Each of the 150 precast reinforced concrete panels that make up the new seawall weighed between six and 12 tonnes each, while

underfoot some 8,500 pavers and 19,000 individual stone cobbles were laid. General Manager The project, jointly funded by the Australian David Farmer Government through its National Stronger Regions Fund and Wollongong City Council, is a key component of the Blue Mile Master Plan and is part of our broader focus to enhance the foreshore for the enjoyment and use of locals and visitors and the ongoing growth of the city centre.

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MAJOR CAPITAL WORKS PROJECTS

Wollongong City Council is the custodian of infrastructure, property, plant and equipment assets valued at approximately $4.3 billion (written down value after depreciation of $2.4 billion) on behalf of the community. During 2017-18, Council delivered a capital works program worth $95.9 million, completing, commencing and working on 650 projects across the local government area. This includes $56.4 million on renewing and replacing existing ageing assets, and $39.4 million on upgrading or constructing and purchasing new assets. In addition, Council received a further $18.1 million of contributed assets such as roads and drainage from new subdivisions constructed by developers. The following is a summary of the 2017-18 expenditure program, highlighting some of the major projects undertaken in the financial year:

2013-14 2014-15 2015-16 2016-17 2017-18 Capital Works* $86.2M $85.8M $82.7M $90.8M $95.9M

Major Capital Projects . Continuing Stage 1 Fowlers Road extension to Fairwater Drive $9.6 million . Completion of the Lower Tramway seawall and shared path $7.9 million . Continuing The Grand Pacific Walk Stage 1 to Stanwell Park $6.0 million . Whytes Gully Waste Facility new cell construction $5.3 million

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Footpaths and Cycle Ways Parks Gardens and Sports Fields 140 projects 48 projects $22.5 million spent including: $3.1 million spent including: . Stanwell Park commercial area upgrade $1M . Ian McLennan Park synthetic football pitch . Kembla Street, Wollongong - Crown to Market construction $175k streets CBD, streetscape upgrade $515k . Figtree Oval fencing and sight screens $235k . Mulda Street, Dapto – Byamee to Barellan . Gloucester Boulevard fitness equipment at MM streets, new footpath $185k Beach, Port Kembla $145k . Belmore Basin embankment repair $405k . Integral Energy Park playground $150k

Roads, Bridges and Related Assets Car Parks 215 projects 27 projects $18.9 million spent including: $2.4 million spent including: . Cowper and streets new signals $710k . Coalcliff Surf Club car park remediation $483k . Mercury Street, Wollongong reconstruction . MM Beach car park $380k $588k . car park access road $175k . Harry Graham Drive bank stabilisation $528k . Berkeley Road bridge replacement $660k Beaches and Pools 22 projects Buildings $2.2 million spent including: 87 projects . Beaton Park water filtration and circulation $12.5 million spent including: system $528k . Botanic Garden nursery shade house $836k . Unanderra Pool solar heating $250k . Beaton Park Leisure Centre fit out . Coalcliff Rock Pool construction works $614k . Cringila Community Hall $670k . Unanderra Pool amenities $560k Commercial Operations 15 projects West Dapto $1.3 million spent including: 11 projects . Bulli Tourist Park three new cabins $485k $11.4 million spent including: . Lawn cemetery lawn beams $114k . Baan Baan Street extension $568k . Lakeside Leisure Centre exercise equipment $85k

Waste Facilities 17 projects Library Books $7.3 million spent including: $1.2 million spent on library materials for loan . Community Recycling Centre $730k (both physical and online materials) and for in-library reference use.

Storm Water/ Floodplain Management 142 projects $6.6 million spent including: . JJ Kelly Park swale drain $389k . Brokers Road dam rehabilitation $254k . Hutton Avenue Bulli, pipe lining $200k . Wellington Drive Balgownie, debris control structure $564k . Foothills Dam channel lining $578k

Plant and Equipment (including Fleet) $4.0 million spent replacing Council plant including major mobile plant, with two new crew vehicles

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FINANCIAL SNAPSHOT

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OPERATING RESULT TOTAL ASSETS CASH AND INVESTMENT

80 3.0 200 $2.57

$2.54 180 $69.47 $167.60 70 $2.46 $2.40 $2.36

2.5 $154.03 160 $157.80 60 $144.66 140

$48.77 2.0 50 $117.97 120

40 1.5 100 $31.60

$27.84 80 30

Total Total Assets ($B) 1.0 60 Operating Surplus Surplus Operating ($M)

20 Total Cash Balance ($M)

$12.10 40 0.5 10 20

0 0.0 0 2017-18 2017-18 2016-17 2016-17 2013-14 2013-14 2014-15 2014-15 2015-16 2015-16 2017-18 2016-17 2013-14 2014-15 2015-16

INCOME STATEMENT BALANCE SHEET CASH FLOW STATEMENT The income statement identifies The balance sheet identifies This statement provides a income and expenses for 2017-18. what Council owns as assets, summary of Council’s cash As at June 2018, Council’s what it owes as liabilities and its receipts (inflow) and cash operating result was $48.77 net worth position (equity). As at payments (outflows) during the million. The operating surplus of June 2018, Council managed year. The closing cash balance as $48.77 million was $12.34 $2.57 billion worth of total at 30 June 2018 was $157.80 million higher than original assets. million. This represents a $9.81 budget, primarily due to the million decrease from the early payment of the first two previous year, primarily due to quarters of the 2018-19 timing of financial assistance Financial Assistance Grant in grant. June 2018.

EXTERNAL FUNDING In 2017-18 Wollongong City Council received $41.72 million in federal and state government funding compared to $43.37 million received in 2016-17. These receipts have been impacted by the timing of the Financial Assistance Grant payments. Council received $18.66 million during 2017-18 compared to $26.48 million in 2016- 17, which effectively represented one and half years of Financial Assistance Grant entitlement. When adjusted for the timing of these payments, external funding increased by $6.25 million, largely due to increased level of capital grants received associated with the West Dapto development. Some of the funding received this financial year includes: . $0.71 million received for floodplain and stormwater management . $10.95 million for roads and bridges . $3.90 million for community transport and social support. The full amount of grants received is reported in Note 3 of the financial statements. WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 12 | Page

Five Year Summary of Key Statistics

2013-14 2014-15 2015-16 2016-17 2017-18 Total number of residents* 205,231 206,794 208,875 211,201 213,841 Total number of ratepayers 78,985 79,316 79,881 81,005 82,089 Rates levied (income) $127.6M $137.8M $146.4M $158.1M $159.8M Average general residential rate $1,174.95 $1,249.30 $1,333.12 $1,417.99 $1,444.05 Increase in average residential rate 3.46% 6.33% 6.71% 6.37% 1.84% State government rate ceiling 3.4% 2.3% 2.4% 1.8% 1.50% Specific purpose grants revenue $22.0M $16.0M $21.29M $15.21M $21.51M (incl. capital and operating) Available working funds balance $24.5M $17.4M $10.4M $27.0M $23.4M Operating performance ratio -6.53% 2.31% 0.87% 10.74% 4.09% Debt service ratio 2.68% 2.73% 3.25% 3.18% 3.34% Asset maintenance ratio 0.78 0.97 0.97 0.98 0.98 Capital Works Program $86.2M $85.8M $82.7M $90.8M $95.9M Number of positions (permanent FTE) 1,008.2 1,029.8 1,046.27 1,045.92 1,097.26 Population per employee ( permanent FTE) 203.6 200.8 199.6 201.9 194.9 Governance + Admin expense per capita $139# $144 $167 $199 $153 Environmental expenditure per capita $272 $281 $280 $291 $302 Community services, education, housing, $132 $138 $143 $134 $151 amenities expenditure per capita Recreational + Culture expenditure per capita $263 $250 $262 $258 $267 Public order, safety + health expenditure per $74 $70 $74 $76 $69 capita Roads, bridges and footpath expenditure per $230 $225 $239 $192 $251 capita Material diverted from landfill (Domestic waste 47.0% 47.6% 46.9% 46.3% 45.2% collection) Development applications assessed 1,388 1479 1,462 1,419 1,502 Wollongong Botanic Garden visitation 393,468 440,929 481,214 451,652 418,177 Wollongong City Gallery visitation 99,915 83,727 80,488 87,328 101,030 Illawarra Performing Arts Centre and Town 107,790 103,316^ 131,231 113,694 170,351 Hall visitation Library visitation 969,207 1,103,454 1,008,330 981,551 1,020,671 Pools attendance 1,086,412 1,075,193 1,175,667 1,219,485 1,152,239

* 2017 Estimated Resident Population figure - Source: Australian Bureau of Statistics, Regional Population Growth, Australia (3218.0). Compiled by .id # Note: The allocation of costs between the services has varied over the reporting period making direct comparison at this level inaccurate. ^ In June 2014, Merrigong Theatre Company took over the management of the Wollongong Town Hall.

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ORGANISATIONAL LEADERSHIP

Council is the governing body that appoints the General Manager. Four directors (Planning + Environment, Infrastructure + Works, Corporate Services and Community Services), along with the General Manager, form the Executive Management Committee (EMC). A revised executive structure, with the inclusion of a fourth director, was endorsed by Council in July 2017. The revised senior staff structure was endorsed by Council in May 2018. The Executive Management Committee (EMC) meets on a weekly basis to oversee policy development, strategy and the overall management of Council. Members of EMC attend all Council meetings and provide information and advice enabling Council to make informed decisions on strategic and policy issues. This Executive team is supported by senior managers and staff that have responsibility for implementing the policies and directions set by the Council.

General Manager

Planning + Infrastructure + Corporate Community Environment Works Services Services Department Department Department Department

Community Development Information + Cultural + Assessment + City Works Improvement Economic Certification Development

Open Space + Library + City Strategy Environmental Finance Community Services Services

Infrastructure Regulation + Governance + Property + Strategy + Enforcement Customer Service Recreation Planning

Human Project Delivery Resources

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STRATEGIC PROGRAMS

Our councillors have made a commitment to support our organisation and the community in making Wollongong a better place to live, work, visit and play. To focus Council’s attention to achieve this, councillors agreed to five strategic programs; which were outlined in the Delivery Program 2012-17.

Financial Sustainability Our Council is committed to improving the standards of community assets over the five-year Council term. This will be achieved by directing 85% of all operational funds for capital to the renewal of existing assets. Project Sponsor: Director Corporate Services Project Manager: Executive Strategy Manager Strategic Program Progress  On Track

The Securing Our Future financial sustainability program was formally closed at the December 2016 Quarterly Review, having achieved overall targets ahead of schedule and without the need to pursue high impact service adjustments. Council continues to seek and implement financial sustainability initiatives through a number of activities, including service reviews, the Business Solutions Steering Committee and the strategic planning and reporting process.

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West Dapto Urban Release Council has been working in collaboration with key government agencies to provide the infrastructure needed to support growth within the West Dapto Urban Release Area. This includes improving access, infrastructure and local services which are needed to support the additional 19,000 future dwellings within the release area. Project Sponsor: Director Planning and Environment Project Manager: Manager Project Delivery/ Manager City Strategy Strategic Program Progress  On Track

PROGRAM ACHIEVEMENTS Adoption of the West Dapto Section 94 Development Contributions Plan 2017 and execution of the Calderwood Planning Agreement in December 2017 substantially reduced the financial risk to Council in the funding of essential local infrastructure. Council staff commenced the biennial review of the West Dapto Section 94 Plan to ensure the contributions plan continue to reflect local infrastructure requirements. The aim is to further reduce the financial risk to Council in the funding of essential local infrastructure. The biennial review will be completed by June 2019. The early stages of the Fowlers Road to Fairwater Drive extension are substantially complete with construction of the smaller bridge over the flood cut channel complete. Stages involving the relocation of services are underway. The tender for the main bridge and roadworks was awarded by Council in July with site work commencing in August 2018. Stage One of Wongawilli Road/ West Dapto Road project commenced late in June 2018. A number of options were investigated and considered by Council staff in the structure plan review for the North South Link Road (extension of Northcliffe Drive). Concept design works continued for a number of the section 94 funded roads within the West Dapto Access Strategy. Design work continues for a number of the section 94 funded roads within the West Dapto Access Strategy as follows: . Wongawilli and West Dapto roads - Work commenced late in the financial year on Stage 1 of this project. Stage 2 (east of the Shone Avenue intersection) is in detailed design . A proposed road link extending from Northcliffe Drive through to West Dapto Road - A number of options were investigated for Council consideration in the structure plan review . West Dapto, Darkes and Sheaffe roads - Concept design commenced . Jersey Farm Road - Preliminary concept designs were completed to provide input into the structure plan . Cleveland Road - Concept design completed . Huntley and Avondale roads - Concept design commenced . North South Link Road (proposed road linking Bong Bong Road to the future Fowlers to Fairwater Link Road) - Preliminary investigations undertaken for consideration.

PROGRAM RISKS Both access projects (Fowlers Road to Fairwater Drive, and Wongawilli and West Dapto roads) identify a number of significant risks under their project risk registers. Assessment of the risks, including possible mitigation measures are being undertaken at regular milestones to manage these risks. Council has prepared alternative options for the West Dapto Road, Darkes and Sheaffes Road links which are being considered in the West Dapto Structure Plan.

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Waste Management During Council's term we will work to reduce the environmental impact of waste by improving waste management across the city. We will finalise and deploy Council's Waste Strategy, assess the impacts of the carbon tax, and work toward the development of a new landfill cell at Whytes Gully to increase landfill capacity for the region. Project Sponsor: Director Infrastructure and Works Project Manager: Manager City Works Strategic Program Progress  On Track

PROGRAM ACHIEVEMENTS The Waste Management Strategic Program is rapidly progressing. Multiple concurrent projects derived out of the Wollongong Waste and Resource Recovery Strategy are currently being implemented. When complete, these strategic projects will improve waste management related services offered to our community and benefit the environment. Some of the highlights from 2017-18 include:

NEW COMMUNITY RECYCLING CENTRE DEVELOPMENT The facility was officially opened in March. Located at Whytes Gully Waste Facility, Kembla Grange, the centre accepts free of charge a large range of waste that cannot be collected from kerbside pick-ups such as paint, fluorescent lights and batteries free of charge.

NEW LEACHATE MANAGEMENT SYSTEM AT WHYTES GULLY The laboratory bench scale analysis was conducted. This analysis will inform delivery of a new specially designed leachate management system at Whytes Gully to aid continual improvement and deliver best practice environmental site management.

ENVIRONMENTAL REHABILITATION OF HELENSBURGH LANDFILL Extensive technical investigation into the interaction between the proposed construction materials has been completed. These investigations will ensure the best environmental outcome can be achieved in the site rehabilitation. Council is in the process of having the design documentation reviewed and certified prior to calling tenders for major rehabilitation construction.

NEW AND ONGOING ARRANGEMENT FOR LANDFILL GAS EXTRACTION AND POWER GENERATION AT WHYTES GULLY Gas flaring continued this year, and the quality and quantity investigation of the site’s gas profile was completed. The concept design for a landfill gas management system has been completed and a joint regional tender specification with the Illawarra Shoalhaven Joint Organisation was provided to the marketplace with a view to implementing a long term gas collection and power generation facility at Whytes Gully. Once complete, Council will be able to generate electricity as a by-product of waste emplacement at Whytes Gully and greatly reduce our GHG emissions. The joint council tender negotiation process is currently underway. Landfill gas continues to be captured and flared at Whytes Gully with approximately 1 million cubic metres of methane gas combusted over the year. The combustion of methane gas greatly reduces the global warming impact of emissions. Due to the repeal of the Carbon Pollution Reduction Scheme (Carbon Tax) and the removal of the related liability, Council held approximately $1.8 million in Carbon Tax revenue that it could not feasibly return to customers. The Australian Government subsequently released a Waste Industry Protocol (the protocol) to administer handling of these funds. This effectively provided a mechanism for Council to invest the funds into suitable projects that have emissions reduction as one of their purposes.

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Subsequent to Council resolving to participate in the protocol, a project program has been established to deliver projects that comply with the protocol's terms and intent. The completed project list includes: . Solar Photovoltaic Systems at Bulli, Corrimal and Windang tourist parks, Ribbonwood Community Centre, Beaton Park Leisure Centre, Dapto Community Pool and Whytes Gully. . Energy efficient lighting upgrades for the Administration Building, Wollongong City Art Gallery and Bulli, Corrimal and Windang tourist parks.

CONSTRUCTION OF NEW LANDFILL CELL STAGES AT WHYTES GULLY Two new large landfill cells are in the last phases of construction and are currently being lined. These works are the next phase of construction within the site to maximise the landfill capacity in line with our planning approval. Part of the cell works required the de-commissioning of the old leachate treatment ponds and the construction of a new leachate pond which is also complete. It is expected that filling of the new cells will take place in January 2019, following receipt of construction approvals from Environment Protection Authority (EPA).

PROGRAM RISKS . To ensure the uninterrupted ability to landfill waste, the new landfill cell Stage 2 must be constructed and subsequently achieve EPA approval prior to being commissioned for use. The technical nature of the construction and lack of surety, with regard to approval timeframes, contributes risk to this project. An expert project team has been engaged to mitigate this risk, and ensure an ongoing dialogue with EPA to help minimise any potential approval delays.

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City Centre Revitalisation Council’s fourth strategic program, is to improve the attractiveness of the Wollongong City Centre to work and visit, reinforcing its role as the region’s major hub for investment and jobs growth. Project Sponsor: Director Community Services Project Managers: Manager Project Delivery and Manager Community Cultural and Economic Development Strategic Program Progress  On Track

PROGRAM ACHIEVEMENTS Council continues to manage the ongoing operations of the Wollongong City Centre and focus on activation. This includes the delivery and assessment of the city centre free Wi-Fi network and CCTV system upgrade, and introduction of removable outdoor umbrellas at the intersection of Crown and Market streets. A Safer City Centre Working Group focused on actions that help deliver a positive space in the mall for all community members. Successful initiatives by the cross-agency group include the Need a Feed coffee service in Globe Lane and initiatives for the socially disadvantaged members of our community. Advocating for a strong evening economy has continued with the City Centre Activation Manager sitting on the Night Time Economy Councils Committee (NTECC), with a membership of nine local councils (City of , Parramatta, Waverley, Newcastle, Liverpool, Canterbury-Bankstown, Lake Macquarie, Northern Beaches and Wollongong) and Local Government NSW. The group was established to encourage the ongoing development of the night time economy across NSW local government areas and as an advocacy and capacity building committee to share information, support councils and promote matters of common interest in the shaping of vibrant, safe and sustainable night time economies. During 2017-18, evening events and activations in the city centre included Nights on Crown - Down the Rabbit Hole over three evenings in June, Honk Oz and Lunar New Year. The Eat Street Markets continue to be a major attractor for the city centre on a Thursday evening with 10,000-15,000 visitors coming along each week. Specialist consultants have been engaged to address key objectives, including shopfront vacancies and improving the pedestrian experience across key city centre precincts. Extensive engagement with Crown Street Mall businesses has been undertaken across a range of projects including large-scale Mall Public Art project and city centre marketing and promotional opportunities, promoting positive business engagement. In addition, a number of capital and operational programs were rolled out during the year, including: . Completion of upgrade works, including footpath widening at lower Crown Street and street light refurbishment at western Crown Street. . Creative Wayfinding Research and Scoping. This project implements key actions from the City for People report. It will consider a holistic system for wayfinding incorporating information based signage (to inform) and creative elements (to attract). . Commencing work with state agencies to review and update the CBD’s Access and Movement Strategy to inform plans and programs to manage vehicle and people movements in and around the city centre, and to encourage greater use of public transport and active transport such as walking and cycling. . Successful delivery of tree replanting program throughout CBD. . Launch of the City Centre Marketing and Communications Strategy and campaign, The Centre of it All.

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Connectivity / Walkability Council’s fifth strategic program is to improve the connectivity of the local government area through the upgrade of our network of footpaths and cycle ways. This focus on our path and cycle network will ensure that necessary works are carried out to achieve an accessible and connected city. Project Sponsor: Director Infrastructure and Works Project Manager: Manager Infrastructure Strategy and Planning Strategic Program Progress  On Track

PROGRAM ACHIEVEMENTS During the past 12 months, Council has invested over $22 million on 142 different cycling and walking infrastructure projects. This includes both the renewal of existing infrastructure and construction of new connections. The Wollongong Bike Plan was adopted in May 2014 and the companion Pedestrian Plan adopted in December 2017. Actions identified within these plans are incorporated into the Infrastructure Delivery Program and operational programs for progressive implementation. Council has a forward program for footpaths and cycle ways valued at over $39 million over the next three years, including a significant increase in funding for new footpaths across the local government area.

Major projects progressed or completed during the year include: . Grand Pacific Walk Stage 1, continuing construction of the new shared path from Coalcliff to Stanwell Park. This crucial link is expected to be completed during 2018-19. . Construction of the Tramway Seawall and shared path that was completed ahead of schedule and opened in June 2018. . Concept designs of the Smith and Kembla streets on-road cycle way continued, which will provide dedicated access for cyclists into the city centre. Council has applied for a grant through the NSW Active Transport Program to enable a detailed design. Funding submissions have also been made under this program for the Smith Street rail underpass and 15 other active transport projects across the city. . Council received funding to undertake an initial feasibility study into a rail trail through the historic Otford Railway Tunnel, with this project continuing through 2018-19.

PROGRAM RISKS There are a number of sites on the network expansion program with significant geographical, technical, agency approval and community concerns that may impact on the design phase and construction timeframes. To minimise the impact of these risks, designs for projects further down the delivery program are being progressed such that construction programs can be rescheduled to ensure continued delivery of the improvement program.

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We Value and Protect our Environment

An overview of how we worked towards achieving the community’s goal of valuing and protecting our environment through the five-year delivery program actions and annual plan actions are detailed in the following pages. Additional highlights relating to this goal are also included under the Strategic Programs – West Dapto Urban Release (page 20) and Waste Management (page 21).

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 0.0% 4.8% 0.0% REQUIRED 90.3% 4.8%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Participation in environmental programs 58,341 41,462* 35,349* 44,817 62,370 Plants propagated by Wollongong Botanic Garden 73,399 63,772 64,896 74,280 55,001 Nursery Plants distributed via Greenplan, external sales, landscape sales, Bushcare, Fiready, Dunecare and 65,505 67,623 68,678 79,291 55,025 Botanic Garden collection Rubbish collect from clean up activities ^ 103 67 53 60 58 Total domestic material to landfill (tonnes) 46,059 46,870 47,681 49,158 45,964

* Numbers dropped during 2014-15 and 2015-16 due to a reduction in grant funding for events (withdrawal of WaSIP funding ^ Measures the tonnage collected from Environment Strategy and Planning Community Service Program, Rise and Shine and Clean Up Australia Day. A significantly higher amount of material was collected in 2013-14 as a result of concentration on removing large heavy items from bushland i.e. cars, concrete, engine blocks, etc

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Botanic Garden Nursery distributed Pest Management Programs 55,025 native plants which The Pest Management Program throughout 2017-18 focused on rabbit and deer control at contributed to the urban greening of strategic sites. the city A review of resource allocation for pest

management and opportunities is currently Urban Greening Strategy underway to collaborate with other key Urban Greening has been identified as one of the stakeholders. The Illawarra Wild Deer councillor strategic priorities for the current term, Management Program finalised the tender and work is well underway to implement a suite of process for contractors in May 2018 and culling actions to deliver against the strategy's vision and operations have recommenced. goals. This work is guided by the Implementation

Plan 2017-21, which identifies detailed and specific strategies to achieve immediate outcomes. These include a focus on public tree management, putting in place technical guidelines for improved consistency of outcomes across the public and private realm, and developing targeted planting programs to 1,721 volunteers contributed 8,012 hours maximise the benefit of urban greening for people Participation in Bushcare/ Dunecare/ Fiready and places. A project team has been formed and planning is 2,016 customers bought 22,408 native plants well progressed for a street tree program to align Botanic Garden Greenplan program with the Urban Greening Strategy, adopted by

Council in December 2017. Pilot sites have been Regulatory Programs identified, with the initial site at Farmborough Reactive inspection programs based on customer Road, Unanderra completed with 150 trees requests are undertaken, in addition to targeted planted. enforcement programs aimed at improving A trial tree inventory collection was also awareness, and where necessary, undertaking undertaken by an arborist as part of this year’s enforcement action. Proactive work with the street tree pilot project in Unanderra. The cost of inspection of development sites in the CBD area data captured in the trial will inform the extent of involving development standards and site controls priority data capture achievable with current have commenced and will continue into 2018-19. budgets. Participation in the Global Covenant of Mayors Asset Protection Zones Council joined the Global Covenant of Mayors for Council's Bushfire Management Program Climate and Energy in August 2017. The continued to implement and report on the greenhouse inventory was completed and a City maintenance of 96 Asset Protection Zones across Emissions Profile has been submitted to the the city in compliance with the Illawarra Bushfire International Council for Local Environmental Risk Management Plan. This work involved a mix Initiatives for verification prior to submission to of contractor and volunteer management, and the Global Covenant of Mayors for Climate and also included the resolution of resident enquiries Energy. in liaison with the RFS and NSW Fire and Rescue. Monitor Council’s Water, Energy and Greenhouse Gas Emission Natural Area Management Program Council is integrating sustainability outcomes into annual works was active at 147 project scopes as a matter of business as usual. restoration sites over 240.6 Ha. The integrated sustainability outcomes are being informed by Council's Sustainable Buildings Annual expenditure of $726,417 was Strategy. Key areas being addressed at the supplemented by $146,328 in external moment include lighting upgrades and the funds (grants) and $240,165 in value progression of projects funded through the of volunteer labour. Voluntary Waste Industry Protocol associated with the early collection of Carbon Price liabilities.

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A number of key projects have progressed over the In December 2017, Council received three grants past 12 months including the installation of from the Office of Environment and Heritage photovoltaic systems and lighting upgrades. under the Floodplain Management Program.

Lighting upgrades to the Administration Building These are: are anticipated to reduce consumption by around . Investigation and concept design - Bellambi 100,000 kWh. Gully Scheme It is projected, based on available data, that . Feasibility Study - JJ Kelly Park land form Council's high consumption sites will show a modification decrease in electricity consumption. Projections . Review of Mullet Creek Floodplain Risk suggest savings will be in the vicinity of 500,000 Management Study and Plan kWh. The savings are attributable to upgrades Council also received funding for the Voluntary implemented at several of these sites including Purchase of 17 Wilford Street, Corrimal. lighting and solar projects. At present the bill data received from Sydney Biodiversity Certification of West Dapto Urban Water is insufficient to make a comment with Release Area regards to water performance. This will be In 2014, Council submitted the draft West Dapto updated as data becomes available. Council will Biocertification report to the NSW Department of continue implementing technical and behaviour Planning and Environment, with a request for a change strategies to improve performance, Biocertification levy to be included in the draft however, consumption values will be influenced by Special Infrastructure Contribution Plan. In weather patterns. February 2018, the state government announced the West Dapto Urban Release Area as an Interim Water Quality Monitoring Designated Area for the purposed of the savings Program and transitional arrangements to the Biodiversity Council has completed five years of monitoring Conservation Act 2016. In addition, the West Dapto water quality in Lake Illawarra. Analysis of the Urban Release Area was included in the multiple results show the lake to be spatially variable with strategic biodiversity certification areas of the water quality being generally poor in the less well state. Following several meetings with the flushed areas in the north and south, while the Department of Planning and Environment and the middle section of the lake is relatively good quality. Office of Environment and Heritage between Over the five years, water quality in the southern March and May, progress has been made on section appears to have become worse. funding options.

Floodplain and Stormwater Management Joint Memorandum of Understanding During 2017-18 over $6.9 million was spent on Wollongong City Council has led the review of the Stormwater and Floodplain Management joint Memorandum of Understanding (MOU) projects. 65 projects were completed with a between Shellharbour, Kiama and Wollongong, further 100 projects underway. whose boundaries form the Illawarra Emergency Flood studies or floodplain risk management Management Committee. The MOU sets out the studies are currently progressing in 11 different relationship between the councils for the catchments. The status of implementing Council’s governance of the Illawarra Local Emergency revised blockage factors into each of the revised Area. Following liaison with staff from all councils, flood studies is listed below NSW Police and the Regional Emergency Management Officer, the MOU was signed by all . Brooks Creek Catchment – 100% complete councils in July 2018. . Mullet Creek Catchment – 100% complete . Duck Creek Catchment – 60% complete . Minnegang Creek – 50% complete . Kully Bay Catchment – 50% complete . Wollongong City Catchment – 70% complete . Collins Creek Catchment – 75% complete . Allans Creek Catchment – 50% complete . Fairy Cabbage Tree Catchment – 50% complete . Hewitts Creek Catchment – 75% complete . Towradgi Creek Catchment – 75% complete.

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. Studies for dune management options for Council Ocean Lifeguards delivered Bellambi, Wollongong City and Port Kembla Council's Surf Sense and Water beaches are underway. During the year, preliminary options reports have been safety education program to over 700 delivered for all projects. primary school and TAFE students, . The Beach and Dune Monitoring Program culturally diverse and refugee groups continued, with transects surveyed and photo and over 600 University of monitoring at dune project sites every Wollongong students. two/three months.

Beaches With a warm summer and favourable sea conditions our beaches saw over 1.2 million people visiting our 17 patrolled beaches. Council Lifeguards and Volunteer Lifesavers experienced a busy peak season with swift preventative actions leading to no major incidents at patrolled beaches. 7,544 participants Unfortunately, there were two fatalities at waste education workshops/ events unpatrolled sections of beaches (Sharkeys at Bulli 12 waste wise events and MM Beach at Port Kembla) in January. In diverted 85% of waste from landfill March, three Council beach and pool staff at Port Kembla responded to a critical incident and their swift actions led to the community member Waste Minimisation Programs making a full recovery. 2017-18 saw a successful 12 months of delivering waste minimisation and educational programs,

including:

. launch of the Community Recycling Centre

(CRC), recognised as outstanding by the EPA

. awarded two Betty Awards for Council's Asbestos Awareness campaigning 89% satisfaction . introduction of a Plastic Free Wollongong Trial cleanliness of our beaches with Boomerang Alliance, which increased momentum throughout the year and is continuing across the community NSW Coastal Reforms . installation of the anti-litter artworks along The NSW Coastal Reforms are largely complete, Wollongong's foreshore. and Council has participated in this process through providing feedback on reform proposals. Regional Illegal Dumping (RID) Program Within this period, the Wollongong Coastal Zone Significant progress has been made in regards to Management Plan was certified and gazetted by the RID Program throughout the year, including the state government, giving it formal recognition extensive work to process improvement and under the policy framework guiding coastal development, staff training and support and management in NSW. overall program review.

Dune Management Strategy Work has progressed on the following actions from the Dune Management Strategy: . Bush regeneration contractors were engaged The Community Service Order Program for the year to implement actions from the involved 146 personnel contributing Dune Vegetation Site management plans for 9,948 hours to assist in cleaning up the Stanwell Park, Bulli, Woonona, Bellambi, Corrimal, Towradgi, Fairy Meadow and city's natural assets, roadsides and litter Wollongong City beaches. This includes weed hotspots. control and revegetation with low growing native species. Council has responded to vegetation vandalism at Woonona Beach.

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Preserving Local Cultural Heritage FUTURE DIRECTIONS Illawarra Images comprises the photographic Over the next 12 months, we will work towards collections of Wollongong City libraries and other achieving the following objectives: organisations. The collection continues to grow as . Provide opportunities to work with volunteers, more photographs of people, places, buildings and community groups and government to actively events are added covering the last two centuries participate in urban greening. of local history from the mid-1800s. The Friends of . Implement a landfill gas management system at Wollongong Library have donated $10,000 towards Whytes Gully. this project. . Implement priority actions from the Illawarra The Illawarra Remembers database also Escarpment Strategic Management Plan. continues to expand as more records are added. . Implement a Pilot Public Place Recycling Accessible from anywhere across the globe, Program. people can view profiles, create new profiles or add new information such as a comment, image, . Engage with the community and carry out the story, link, or other media to a current profile. Woonona Village and Village People can share an image by uploading it to the planning studies. library’s images page. . Complete Helensburgh Town Centre Study. To date, over 50% of the . Set an emissions reduction target that is in photographic collection has been digitised. A alignment with the Global Covenant of Mayors project to add 20 oral history recordings from a compliance requirements. social history of Wollongong Town Hall (2009) to . Develop a climate change Adaption Action Plan Illawarra Stories has also been completed. and an Emissions Reduction Action Plan.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables 2017-18 Responsibility 5 Year Action Implement programs and events which All annual deliverables on track/ongoing. Director Planning + facilitate community participation Environment Impacts from development on the All annual deliverables on track/ongoing. Director Planning + environment are assessed, monitored Environment and mitigated Establish effective urban stormwater All annual deliverables on track/ongoing. Director Infrastructure + Works management programs Manage vegetation to reduce bushfire All annual deliverables on track/ongoing. Director Planning + risk in Asset Protection Zones on Environment/ natural areas under Council care and Director Infrastructure + Works control Implement a coordinated approach to All annual deliverables on track/ongoing. Director Community Services/ floodplain and stormwater Director Infrastructure + Works/ management Director Planning + Environment Implement priority actions from the 3 annual deliverables on track/ongoing, 1 Director Planning + Illawarra Biodiversity Strategy delayed. Environment Delayed: Continue to pursue biodiversity certification of the West Dapto Urban Release Area including offsetting provisions Council has been seeking the biocertification of the West Dapto Release Area since 2014. The project has been delayed, as it requires a funding commitment from the state government through a Special Infrastructure Contribution Plan or alternate funding mechanism. There has been recent progress, with a commitment from the NSW Department of Planning and Environment to finalise the biocertification. Additional information and data has been forwarded to the NSW Department of Planning and Environment to assist with the proposed biocertification levy for the West Dapto Release Area. Implement priority actions from the All annual deliverables on track/ongoing Director Planning + Strategic Environment Management Plan Finalise and implement the Coastal All annual deliverables on track/ongoing Director Planning + Zone Management Plan Environment Assess the impact of day visitors on All annual deliverables on track/ongoing Director Community Services service levels Coordinate a range of Water Safety All annual deliverables on track/ongoing Director Community Services Education programs to enhance safe community access to our beaches Develop and implement programs that All annual deliverables on track/ongoing Director Planning + encourage community participation in Environment reducing Wollongong’s ecological footprint

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Delivery Program 2012-2017 Status of Annual Deliverables 2017-18 Responsibility 5 Year Action Finalise and deploy Council’s Waste 1 annual deliverable delayed Director Infrastructure + Works and Resource Recovery Strategy in Delayed: Continue to deploy Council’s Waste consultation with industry leaders and Resource Recovery Strategy Notable developments and strategic progress aligned with the Waste Strategy include: - Tender for landfill gas collection and power generation provided to the marketplace in May. The tender was a joint procurement effort with Shellharbour and Shoalhaven city councils, coordinated by ISJO. The incorporation of other councils increased the legal and technical complexity significantly, causing a delay in the procurement process of several months. - Development of draft best practice instructions to support continuous improvement in landfill operations. - Extensive macro environment analysis conducted into alternatives to landfill through the iAccelerate program in conjunction with the . - New landfill cell development is currently under delivery by landfill construction contractor. This work is vital for continued operations at the site. Due to the scale and complexities associated with the project and site the project timeline will mean the handover of the project is expected during the second quarter of the 2018-19 financial year. Implement water and energy saving All annual deliverables on track/ongoing Director Planning + strategies Environment Emissions are monitored and reduction All annual deliverables on track/ongoing Director Planning + methods are investigated and utilised Environment/ Director Infrastructure + Works

Investigate a landfill gas management All annual deliverables on track/ongoing Director Infrastructure + Works system for Whytes Gully Develop and implement an All annual deliverables on track/ongoing Director Infrastructure + Works/ Environmental Sustainability Policy and Director Planning + Strategy Environment

Seek external funds to support All annual deliverables on track/ongoing Director Planning + programs for Lake Illawarra, following Environment the closure of the Lake Illawarra Authority

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Delivery Program 2012-2017 Status of Annual Deliverables 2017-18 Responsibility 5 Year Action Establish and maintain an Estuary 1 annual deliverable on track/ongoing, 1 Director Infrastructure + Works Management Committee to protect the delayed. health of Lake Illawarra Delayed: Prepare a Coastal Zone Management Plan for Lake Illawarra In April 2018, the finalised Coastal Management Manual was released by the Office of Environment and Heritage (OEH). The manual outlines the essential elements required of a Coastal Management Program (CMP) in order for it to be certified. Changes to the essential elements from those outlined in the draft that we were working to (on advice from the state government) has meant that a review of the CMP against the new elements is required. This is currently taking place by OEH and may result in additional work being required to the draft CMP before it can go on public exhibition. Lake Illawarra Estuary Management Committee (LIEMC) comments have been reviewed and advice prepared for the consultant to prepare a new draft. These changes are on hold until the review is finalised. Further fine-tuning of management actions is taking place with key stakeholders. Work in partnership with others to All annual deliverables on track/ongoing Director Community Services/ promote a diverse range of heritage Director Planning + education and promotion programs Environment Implement priority actions of the All annual deliverables on track/ongoing Director Community Services/ Heritage Strategy Director Planning + Environment

Implement community and cultural All annual deliverables on track/ongoing Director Community Services promotions program Work with the local Aboriginal All annual deliverables on track/ongoing Director Planning + community in the management of Environment Indigenous heritage Facilitate a range of programs and All annual deliverables on track/ongoing Director Planning + activities which improve food security Environment and local food production Review planning controls for All annual deliverables on track/ongoing Director Planning + environmentally sensitive locations Environment Provide high quality development All annual deliverables on track/ongoing Director Planning + assessment and certification based on Environment QBL principles (note: QBL or the Quadruple Bottom Line takes consideration of environmental, economic, social and governance factors) Maximise sustainability principles in All annual deliverables on track/ongoing Director Planning + the design and construction of Environment Wollongong’s built form Prepare for the introduction and All annual deliverables on track/ongoing Director Planning + implementation of the NSW State Environment Government Planning Reforms

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We have an innovative and sustainable economy

An overview of how we worked towards achieving the community’s goal of establishing an innovative and sustainable economy through the five-year delivery program actions and annual plan actions are detailed in the following pages. Additional highlights relating to this goal are also included under the Strategic Programs – West Dapto Urban Release (page 20) and City Centre Revitalisation (page 23).

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 2.3% 2.3% 0.0% REQUIRED 95.5% 0.0%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Business investment enquiries 102 133 285 350 106# Paid on street parking occupancy rate* 78% 69%* 69%* 72% 77% Visitation to tourist information centre 61,593 64,212 68,547 56,580 53,305 Tourist park occupancy of cabins 50% 48% 57% 58% 59% Tourist park occupancy of powered sites 42% 42% 47% 47% 46% Tourist park occupancy of unpowered sites 37% 31% 26% 33% 46% * Occupancy of metered parking was lower in 2014-16 due to a number of parking zones being block or isolated as a result of construction zones within the city making those parking areas inaccessible. #This change reflects a change in methodology, as it now only counts unique individual enquiries. Internal enquiries are no longer counted in these statistics.

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During 2017-18, Wollongong City Council assisted 106 businesses/investors, including new commercial and office market enquiries. This ongoing level of enquiry has come from manufacturing and industrial businesses looking to establish or re-locate from Sydney due to the ongoing urban encroachment issues and the lower cost base associated with being located in Wollongong.

Advantage Wollongong ‘Quicker, Lighter, Cheaper’ Initiatives Advantage Wollongong is a partnership between the Council has developed and consolidated a range of NSW Department of Premier and Cabinet, partnerships, collaborating with NSW Trains, GPT Wollongong City Council and the University of Group and the Anywhere Festival directly increasing Wollongong, representing a strategic and long-term activity and marketing reach for the city centre. A approach to attracting business, investment and range of Creative Wayfinding Pilot projects and jobs to our city. During the year, Advantage minor upgrades have been developed and delivered Wollongong assisted a number of business and in line with the A City for People/ Public Spaces investor enquiries around relocating or setting up in Public Life implementation plan. These have Wollongong. contributed to the vibrancy, amenity and a sense of Advantage Wollongong also supported and/or public safety across a range of sites including Lower hosted 15 events. One of these included partnering Crown Street, Globe Lane and western Crown with the University of Wollongong Alumni team to Street. host the Shining a Light on Wollongong event held at the Australian National Maritime Museum, targeted Continue to promote and support the iAccelerate at UoW Alumni based in Sydney. A number of other Program niche events were also held, including an event with Council is embracing its City of Innovation tag by Knight Frank in Sydney and a joint event with incubating two key projects to iAccelerate to Auscontact to showcase Wollongong’s growing undertake and work on innovative ideas, which will shared services sector. Advantage Wollongong also deliver better outcomes for the region. The inclusion exhibited at a number of bespoke industry events to of these two projects demonstrate Council’s grow the region’s competitiveness in key sectors commitment to deliver innovative solutions, and and distributed the 2017 Investor Prospectus, promote and support productive connections Shared Services Investor Prospectus and between iAccelerate residents and our broader Wollongong Defence Industry Directory. community. The Marketing the Wollongong Advantage has Council continues to support and promote achieved significant results and helped the iAccelerate through promotional and marketing Advantage Wollongong message reach over initiatives, including social media. 3 million readers (print and online); and a following of over 1,300 on Facebook. ICTC Cluster and i3Net Manufacturing Cluster During 2017-18, Council continued to support the A Google Adwords campaign was undertaken to ICTI and i3net clusters, through three-year funding advertise Wollongong’s competitiveness in the agreements. Advantage Wollongong also partnered Knowledge Services and Advanced Manufacturing with i3net on a number of events and activities in the sectors. The advertisement appeared in Google defence sector, including the development of the around 2 million times and achieved 46,000 views of Advantage Wollongong Defence Industry Strategy the Advantage Wollongong video. and the annual Advantage Wollongong defence During the year, a study into current business update. perceptions of Wollongong was undertaken, with a Council was also the main sponsor of i3net’s Annual particular focus on the Sydney business community Showcase, held in August 2017. to better understand perceptions of doing business and investing in Wollongong. Using both qualitative and quantitative methods to gain deeper insights into perceptions of Wollongong as a place to do business, the results will be used to enhance the Advantage Wollongong message.

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Marketing the Wollongong ‘city experience’ Visitor Information Services Council continues to deliver and support a diverse Destination Wollongong has strategically placed Visitor range of activations and marketing within the city Information Touch Screens in locations with heavy centre to reflect the city experience. Highlights visitor foot traffic, including Novotel Wollongong, North include: Beach, , University of Wollongong and . Working in partnership with GPT Group to deliver Wollongong City Council. These screens serve up real activations and marketing for Crown Street Mall time information to visitors and provide the ability to maximising opportunities to increase visitation book local accommodation and tourist attractions with and length of stay within the city centre. the click of a button. . Development and roll out of the city centre Destination Wollongong has engaged Sandwalk marketing and communications strategy ‘Centre Partners, specialists in new age visitor information of it All’, including television advertisements, provision, to develop a visitor information strategy for radio advertisements and editorial, signage and the region. The strategy is due to be delivered mid collateral. A bus wrap with Premier buses on a 2018-19. new northern suburbs bus route was also secured. Tourist Parks - Bulli, Corrimal and Windang . Facilitating community use of Crown Street Mall, All three tourist parks continue to provide a variety of including support and delivery of over 67 products and services to the visiting customer. commercial and/or community hires facilitated Investment has continued this year with three new over the year such as Honk Oz Festival, PCYC cabins at Bulli, as well as product diversification with Time for Kids amongst others. three ensuites installed and a camp kitchen opened at . Christmas on Crown delivered an integrated Windang. A full refurbishment of amenities at Windang Christmas program of activity and events within was also completed along with the installation of solar the mall including school concerts, ex store systems at all three parks. All initiatives have ensured window displays, piano in the mall, Carol that the tourist parks provide facilities that meet the performances and participatory chalk activation. expectations of its customers as well as provide an inviting base in which to visit the region. . Engaging with businesses to assist with retail

promotions in association with events such as Power and Water Supply to Mt Keira Summit Christmas One Day Sale, with 37 city centre Considerable progress has been made in the process retailers participating in December 2017, up to ultimately construct the powerline to Mt Keira from 22 in 2016. Summit. Earlier in the year the access track was . Continuing to work with Foragers to grow and completed and Council worked with National Parks develop the market, including revitalised layout and Wildlife (NPWS) to permit the use of the new to accommodate new public art work in the mall, facility as well as chasing up the executed Construction entertainment and use of space. Licence and Deed of Agreement. These were received . Delivering three night event Nights on Crown later in the year allowing Council to seek recertification Down the Rabbit Hole, featuring 5x7 metre of the electrical design from Endeavour Energy, and inflatable rabbit installations, live music and pop call for tenders to undertake the construction works up performances and engaging surrounding and associated with the installation of the powerline. local businesses to participate or stay open. Council has also been successful in gaining Nights on Crown Event listing on Facebook agreement from relevant stakeholders to provide achieved a reach of 133,000 people. capital contributions towards the cost of the construction project.

Paint the Town REaD (early literacy program) Council continued to deliver a free Approximately 530 children have been engaged in city centre WiFi service along Crown Paint the Gong REaD activities over the past 12 Street between the railway station months. Various activities have included the Reading Relay, early childhood and supported playgroup centre and Corrimal Street, Globe Lane, visits, the Annual Reading Day at and Arts Precinct and dining precincts of Bright Sparks Birthday event at . The Keira Street (between Smith and reading tents have been included at Council’s outdoor Crown streets), and Corrimal Street movie nights and Bright Spark has visited several of (between Market and Burelli streets). Council’s libraries to promote early childhood literacy. Work has also been undertaken with the Paint the Town REaD Coordination Group and the University of Sydney in relation to the evaluation of the program.

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Wollongong Art Gallery Education and Public Emerging Technologies for Library Service Program Provision The Wollongong Art Gallery delivered 305 education New customer RFID self-checkout units have been and access programs during 2017-18, including installed across all libraries. A self-scan after hours activities aimed at children in preschool, students in returns chute was installed at primary and secondary schools, access programs Library to enable customers' returned items to be for Indigenous children, youth, CaLD and disabilities checked in automatically as they travel through the focussed programs. The Gallery also conducted chute and into the library. programs during Comic Gong and two family fun New scanning technology has also been installed in days for children, parents and carers. All activities the Family History Room at Central Library that were well attended and received positive feedback. enables customers to scan from microfilm or microfiche records to USBs or to send images to the Database Sessions for Year 11-12 Students library printers. The outreach programs provided to Year 11 and 12 high school students appear to be highly valued by Community Facilities Offer Space for Micro- teaching staff and students. They provide the library Business with the opportunity to connect with younger adults A range of different activities such as exercise in an environment they are familiar with and to classes, counselling, art and dance lessons are promote a wide range of library services and provided through community centres by micro- programs including the online databases that can be business operators. This approach of utilising one accessed from home or school. The Local History space for multiple purposes at different times Prize for Young People is also promoted at these throughout the day enables small and start-up sessions. businesses an opportunity to setup and provide a service in a space at minimal cost, while at the same time making a variety of activities that support community life accessible to the whole community. 2,167 programs and events were run by Wollongong libraries with 62,433 Cadets, Apprenticeships and Trainee Program Throughout the year Council supported 17 cadets, people, from pre-schoolers to 10 apprentices, 34 trainees, 6 school-based trainees seniors, participating. and 3 undergraduates. The City Works and Services Traineeship Program won the Operational Performance Enhancement Award at the Local Government Professionals NSW 2018 Awards. Wollongong City Libraries Program of Activities Our cadets, apprentices, trainees and UDPs (CATS) Wollongong City libraries have been increasing the are a stronger and more connected team following number of programs offered across the seven the CATs mid-year workshop. Participants engaged libraries with the aim of facilitating lifelong learning in talks about mindset, professional development amongst community members. Additional adult and planning and peer presentations. They showed their one off programming has been offered across all competitive and fun side in team building activities, demographic areas including activities such as and were given the opportunity to talk to Executive regular author talks, History Week seminars and and evaluate the program. LAW Week programs, which concentrated on elder law and evening talks.

53 VET work placement and 38 work experience opportunities within Council were made available to 16 local high schools through the Illawarra Careers Adviser Network. Over 63,500 people

accessed Wollongong City libraries online data

bases, for research and reference purposes

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Youth Development Program FUTURE DIRECTIONS Council continued to work closely with local Over the next 12 months, we will work towards stakeholders during the year to provide a range of achieving the following objectives: education and employment pathways to students in . Review the Inner City Parking Strategy 2010-26 the Illawarra. This includes further developing the and update any identified necessary School Workplace Learning model in partnership adjustments. with Illawarra Careers Adviser Network and . Provide funds to support Wollongong’s ability to Workplace Learning Illawarra. attract and retain a tourist ship visitor economy Council is also working with the University of through on shore day visits. Wollongong to develop a model that will streamline . Implement a research and development opportunities and encourage further uptake of program targeting alternatives to placing waste internships within Council. into landfill in partnership with the University of Wollongong’s iAccelerate program. . In conjunction with the Illawarra Shoalhaven Joint Organisation and the University of Wollongong, continue to investigate opportunities to fund and deploy smart digital technologies across the region to enhance the productivity of local infrastructure. . Deliver learning programs for employment, digital inclusion and creativity from The Hub digital learning space.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Support regional activities and All annual deliverables on track/ongoing Director Community Services partnerships that result in increased business investment and jobs growth Ensure that Wollongong is attractive to All annual deliverables on track/ongoing Director Community Services diverse companies for business expansion, establishment and relocation Progress implementation of the CBD All annual deliverables on track/ongoing Director Infrastructure + Works Action Plan Build on partnerships which enable the All annual deliverables on track/ongoing Director Community Services retention of local talent Establish Wollongong City Council as an 3 annual deliverables on track/ongoing, 1 Director Corporate Services employer of choice delayed Delayed: Complete development and implementation of a Human Capital Management System At the end of June, additional information on Human Capital Management (HCM) vendors was gathered to assist in a decision on the HCM procurement. Develop and maintain partnerships with All annual deliverables on track/ongoing Director Community Services the business sector to fund and contribute to a broader range of community projects and activities In collaboration with key agencies, All annual deliverables on track/ongoing Director Planning + facilitate the West Dapto Taskforce to Environment deliver the first stages of the West Dapto Urban Release area Facilitate the delivery of business and All annual deliverables on track/ongoing Director Community Services tourism information services

Support projects that investigate All annual deliverables on track/ongoing Director Community Services opportunities for the provision of tourism infrastructure In conjunction with partner organisations All annual deliverables on track/ongoing Director Community Services support the development of innovative industries Facilitate the delivery of business and All annual deliverables on track/ongoing Director Infrastructure + Works tourism information services Director Community Services

Use funds obtained from Restart NSW All annual deliverables on track/ongoing Director Infrastructure + Works Illawarra to commence concept designs and planning for the Bald Hill Improvement Program Review the current investment to deliver a All annual deliverables on track/ongoing Director Community Services more efficient and targeted destination marketing program Undertake major refurbishment works in All annual deliverables on track/ongoing Director Community Services/ the City Centre Director Infrastructure + Works Manage and deliver improved marketing All annual deliverables on track/ongoing Director Community Services and promotion of the City Centre Provide a diverse range of activities in the All annual deliverables on track/ongoing Director Community Services City Centre that target and engage a broad community

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Improve policies and systems to support All annual deliverables on track/ongoing Director Community Services the revitalisation of the City Centre Deliver the Access and Movement Strategy All annual deliverables on track/ongoing Director Infrastructure + Works for the City Centre Deliver Visitor Information Services to the All annual deliverables on track/ongoing Director Community Services city and our visitors Pursue initiatives that promote the region All annual deliverables on track/ongoing Director Community Services/ as place to holiday to both the domestic Director Infrastructure + Works and international markets Support the creation and expansion of All annual deliverables on track/ongoing Director Community Services green industries Ensure that Wollongong is attractive to All annual deliverables on track/ongoing Director Community Services research and development based companies and organisations Implement a range of programs that All annual deliverables on track/ongoing Director Corporate Services/ incorporates learning and development Director Community Services

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Wollongong is a creative, vibrant city

An overview of how we worked towards achieving the community’s goal of a creative and vibrant city through the five-year delivery program actions and annual plan actions are detailed in the following pages. Additional highlights relating to this goal are also included under the Strategic Programs – City Centre Revitalisation (page 23).

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 0.0% 3.2% 0.0% REQUIRED 96.8% 0.0%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Wollongong art gallery visitation 92,250 83,730 80,490 87,328 101,030 IPAC and Town Hall visitation* 107,790 103,316 131,231 113,694 170,351 Library visitation^ 969,210 1,103,450 1,008,330 981,550 1,020,671 Library loans 1,320,000 1,373,000 1,421,000 1,432,000 1,367,542 Library programs - number 1,465 1,669 1,590 2,082 2,167 Library programs - participation 29,783 31,402 39,831 48,296 62,433

* In June 2014, Merrigong Theatre Company took over the management of the Wollongong Town Hall. ^ Library visitation for 2016-17 is 2.6% down on the figure recorded for 2015-16. Increased loans and program participation over the same period reflect the changing utilisation and community expectations of Council libraries. WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 40 | Page

‘Made in Wollongong’ Merrigong and Town Hall Made in Wollongong had a soft launch in January Both the IPAC and Town Hall hosted a 2018 at the welcome precinct for the cruise ship comprehensive selection of events this year. Some visitors. Made in Wollongong artists represented the of the more popular included Sydney Theatre brand and successfully sold their work in the precinct Company’s, smash hit, romantic comedy Black Is market organised by Destination Wollongong. Council the New White, the sensational musical Calamity is finalising the logo and branding licence agreement Jane starring Virginna Gay, Bakersfield Mist starring and work will continue on development of a brand John Wood and also the classical comedy Cyrano de strategy. Bergerac. Diving for Pearls saw the return to the Illawarra of one of Theatre South’s founder, writer Katherine Thomson. The Aspirations of Daise Morrow saw the Town Hall transformed into a grass field! Other popular shows included A Festival of Russian Ballet, Lawrence Mooney – Like Literally, The Umbilical Brothers – Speedmouse. In October 2017 the Merrigong Theatre Company was announced as the winner of the Illawarra Business $40,104 Chamber Awards Category – Wollongong City 13 successful applications Centre Business Excellence. The Music Lounge Small Cultural Grants program continued to grow its audience and reputation for fine music and Music in the Morning continues its popularity with our older community Cultural Grants members. MERRIGONGX, for the new generation of The applications opened for the Large and Small artists, featured Raw Comedy, The Carousel, Heart Cultural Grants Program on the 1 March and closed Shaped Shadow, The Epic and Quiet Faith. April on 31 March. The Large Cultural (Ward Based) 2018 saw the second successful Spiegeltent season funding program provides the community with the which brought over 13,000 people to the Arts opportunity to develop and deliver art based projects Precinct. Reinvigoration of the Town Hall was kicked in our local suburbs. Council received 25 off with Guy Sebastian’s Then and Now Tour which applications to the value of $361,293. The grant played to a full house. Melbourne International assessment panel will meet early in 2018-19 to Comedy Festival brought their own brand of giggles determine successful applicants. to the Town Hall in June.

Creative Space – Lower Town Hall Sixteen artists from varying disciplines have been supported through the Creative Spaces during 2017-18. Council is currently developing a new The use of the studio space has allowed artists to Cultural Plan 2018-22, with over 550 develop their own practice, network and collaborate people consulted to date. with other artists. The artists have also held open community sessions for the general public to gain awareness of their work and display their contribution to cultural activities in Wollongong. Cultural Plan The large room in the Lower Town Hall has also During the year, Council provided nine discreet been used as a workshop and consultation space, programs including workshops and forums in with approximately 89 people using the space. partnership with Office of Environment and Heritage, Bionet, Wonderwalls, Music NSW, Yours and Owls, Wollongong Writers Festival and Create Merrigong Theatre Company will benefit NSW. from $126,000 in NSW Government Community Cultural Development Projects planned, funding from its cultural development developed and delivered during 2017-18 include: program. $70,000 will assist the . The Women Out Loud Community Cultural Disability Trust Actors Ensemble, Development Project which comprised of a 10 $56,000 is from NSW’s Regional Arts week pilot workshop project (including three performance opportunities) in which nine female Touring Initiative and will assist the participants learnt technical performance skills state leg of the national tour of and confidence building practices, using comedy Merrigong’s ‘Letters to Lindy’. as a tool. Six participants performed at Viva La Gong in November 2017. WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 41 | Page

. Youth Art Workshops in partnership with Warrawong High School, Barnardos and Wollongong Youth Services. There were 10-12 The Art Precinct played host to the regular participants involved from Warrawong second Wollongong Spiegeltent from High School and four regular participants at 12 April to 6 May. This year’s Bundaleer over 3-4 workshops. Artworks generated by the workshops were exhibited at headliner was Limbo, a mix of Viva la Gong 2017. cabaret, circus and acrobatics. Twenty-three other shows were Broadcasting and Production Mentoring for Young featured across the season. People

The OnAir/PlayOut radio program on VOX FM provides opportunities for young people to develop skills in production and broadcasting. The 24 Arts Precinct program presenters were provided with a range of Connectivity to the Arts Precinct has been improved development skills including interviewing, show through the delivery of three new soundworks for production and developing podcasts. Opportunities the sound installation and lighting equipment being to extend skills, knowledge and experience were installed for digital artworks. The amenity of the provided for sound engineers, connecting them with area has also been improved with new furniture event managers and industry professionals. One on including tables and chairs plus decorative planter one mentoring opportunities with music industry boxes. This equipment provides an inviting sitting professionals were also implemented. and performance area, as well as deterring cars

from parking. Public Art Strategy The following projects have been developed and The Creative Container in the arts precinct provided delivered as part of the Public Art program 2017-18: an interactive space for artists and the community during the 12 months it was in the precinct. The . Sculpture in the Garden Creative Container hosted seven exhibitions, one . CBD panel project artist in residence opportunity, seven community . Curio Gallery exhibitions events including Comic Gong, Honk Oz and Viva la . Stage 1 Ephemeral Art Project by artist Abhiruchi Gong. The container provided a performance space Chikkarat for the ongoing Playing in the Precinct program, a . Gifting and installation of the Shellpod Sculpture. partnership program with the Conservatorium of Nowra based Aboriginal artist Warwick Keen Music. There were approximately 4,000 visitors to completed designs for a large mural on the eastern the container over the last 12 months. The container side of the Wollongong Art Gallery facing the Arts has now been moved to Dapto Square, where it will Precinct to celebrate the Wollongong Art Gallery’s remain for 12 months with programmed activities. 40th Anniversary. The artwork was installed by The site was activated every Friday, Saturday and Chalk Talk in February 2018. Sunday night with free live music, food sampling and free tent tours on Fridays. Wollongong Art Gallery The Wollongong Art Gallery presented 21 exhibitions in its general program including collection, solo and group shows. Exhibitions showcased Contemporary, Regional, Aboriginal, Youth, Disabilities and CaLD perspectives and included work by people represented in these communities. The gallery delivered 305 Public, Education and Access 12,000 people programs and had hosted 12 exhibition openings, attended Comic Gong seven Community Access Gallery exhibitions and their openings, was a partner in 2018 Comic Gong and hosted the gallery’s 40th Anniversary gala event. Comic Gong Festival The gallery continued to maintain and develop the Comic Gong 2018 was held on 19 May, with over art collection and purchased 77 artworks and were 12,000 attendees who moved between the Central gifted 36 artworks during 2017-18, bringing the Library, Arts Precinct, Wollongong Art Gallery and number of objects in the collection to 2,971 valued Town Hall for exhibitions, events, Cosplay at $15,111,455. competitions and interactive gaming.

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Applications from exhibitors for spaces in the Town Community Events and Celebrations – Culturally Hall exceeded the spaces available resulting in and Linguistically Diverse Communities (CALD) reconfiguring the floor plan to improve accessibility. Council continued to develop community and city The Cosplay competition, held in the Wollongong Art centre partnerships to deliver community based Gallery attracted a record number of entrants cultural events in the Mall; these including IIl Noche, across all ages. with the Spanish speaking communities and the lead Performances such as Rock and Roll Wrestling and agency Spanish and Latin-American Community activities such as ‘nerf’ archery were conducted in Organisation (SALCO), and the inaugural Naw Ruz the Arts Precinct grassed area between the Town celebration, with the Afghani, Iranian and Kurdish Hall and IPAC. A number of activities aimed at communities. children and families were held in Central Library, As part of Refugee Week events, Council supported including pinball machines, Virtual Reality, mini community leaders in their development to step into robotics and face painting. the lead role for the first time to organise the Refugee Week Festival which showcased an evening Heritage Sites and Museums of culturally diverse performances and food. Illawarra Regional Museums Network received a Highly Commended at the IMAGinE Awards 2017, for Library Programs for Cultural Diversity the Wollongong Heritage and Stories (Virtual This year the Library held Tech Savvy classes for Museum) and Wollongong City Council funded members of our CALD community with four Digitisation and Support Project. During the year, a technology training workshops held with a tutor Public Art program has been developed to promote fluent in Mandarin. Over 20 participants attended local museums and their collections as well as the these sessions. Heritage and Stories website (virtual museum). Libraries celebrated Multicultural March with DVD The 2018 Heritage Festival was held in April – May screenings throughout a two week period of Journey 2018. The Wollongong Botanic Garden hosted the to Freedom - a new addition to this series, Step Back in Time tour at Gleniffer Brae, and the showcasing success stories of refugees who have Ghost of Courtenay Puckey Tour. The Illawarra settled in Australia. Branch of the National Trust held a number of local Other programs delivered throughout the year events to mark the Heritage Festival and included Harmony Day, NAIDOC Week and Archaeology week. Multicultural Health Week.

Illawarra Refugee Challenge Council continued to raise awareness of refugee issues and stories through the Illawarra Refugee Challenge in partnership with Multicultural Communities Council of the Illawarra and Council's Youth Services. The first half of the year concluded the partnership with Warrawong High, which saw 24 students trained as facilitators and 185 young 300 people per screening people attend the tours. The second half of the year Moonlight Movies successful developed a new partnership with and 20 Year 11 students are being trained as facilitators to deliver the Refugee Challenge between 3-6 September 2018. Refurbishment of Community Facilities This year has seen a substantial amount of work NAIDOC Week, Reconciliation Week and Sorry Day undertaken to improve our community facilities. The Council partnered with the Aboriginal Community to coordination of this work, to ensure the building facilitate a range of community and Council works match community needs and minimise activities during NAIDOC Week, Reconciliation Week disruption to community services and activities that and Sorry Day. Highlights for 2017-18 include are delivered at our community facilities, Wollongong City Council acting as host Council to necessitates a collaborative effort from all parties. the 2017 NAIDOC Week Regional Awards Dinner This collaboration has resulted in: with over 500 people attending and the Lord Mayors Elders luncheon. . refurbishment works at Coniston Community Centre, Cringila Large Hall, Kemblawarra Council, through its NAIDOC Week small grants Community Hall program, supported Aboriginal and non-Aboriginal . retaining wall works at Smith Street Child Care community groups to conduct a variety of local Centre activities for NAIDOC week across Wollongong. WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 43 | Page

. external painting at Western Suburbs FUTURE DIRECTIONS Community Preschool and Dapto Ribbonwood Over the next 12 months, we will work towards Centre achieving the following objectives: . air conditioning replacement at Helensburgh . Development of a new Cultural Plan 2019-24 Library, and . Implement the Made in Wollongong concept. . refurbishment of the youth room kitchen at Unanderra Community Centre. . Implement public art opportunities at Hill 6- Reserve Ongoing maintenance works continue across . Involve children in the design of public art community facilities. Concurrently design work for features within key regional play space future projects at Wollongong Senior Citizens renewals Centre, Wombarra Children’s Centre and Russell Vale Community Centre are also underway. . Continue to deliver the recommendations from the Live Music Action Plan . Complete the upgrade of heating, ventilation and air conditioning at Wollongong Town Hall and Wollongong Art Gallery.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Promote Made in Wollongong through a All annual deliverables on track/ongoing Director Community Services variety of locally produced events, productions and programs Provide support to existing and emerging 1 annual deliverable on track/ongoing, 1 Director Community Services arts workers and their networks delayed. Delayed: Manage Cultural Grants (small and large) In April, the Cultural Grants assessment panel considered 27 Small Cultural Grants applications. Thirteen applications were successful sharing $40,104 between them. Large Cultural Grant applications are being collated for review and will be completed early in 2018-19. The Large Cultural Grants have been readvertised due to insufficient applications. The revised timeframe is on track. Provide opportunities for local artists and All annual deliverables on track/ongoing Director Community Services performers to exhibit, promote and perform at Council venues and events Successful collaborations with other All annual deliverables on track/ongoing Director Community Services organisations and agencies are established Seek funding for the promotion of All annual deliverables on track/ongoing Director Community Services heritage sites and museums to the community and visitors Encourage the integration of urban All annual deliverables on track/ongoing Director Community Services design and public art Deliver and support a range of projects All annual deliverables on track/ongoing Director Community Services and programs which build harmony and understanding Implement a coordinated approach to All annual deliverables on track/ongoing Director Community Services event acquisition and provision in Wollongong via the delivery of the Events Strategy Encourage Sports Associations to All annual deliverables on track/ongoing Director Community Services conduct regional, state and national events in the city Implement a sustainable program of All annual deliverables on track/ongoing Director Community Services local events via the Events Strategy Plan for, and host, culturally sensitive All annual deliverables on track/ongoing Director Community Services events and programs celebrating the Bi- Centenary of European Settlement in Wollongong across 2015-2016 Coordinate Council’s support and All annual deliverables on track/ongoing Director Community Services investment in events and festivals

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Coordinate an integrated approach to All annual deliverables on track/ongoing Director Community Services infrastructure improvement and service delivery in the Civic Plaza and through the re-establishment of an Arts Precinct in the city Support the coordination of an externally All annual deliverables on track/ongoing Director Community Services funded delivered calendar of activities across the city Develop a new cultural plan All annual deliverables on track/ongoing Director Community Services Deliver a program of activities in local All annual deliverables on track/ongoing Director Community Services communities

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We are a connected and engaged community An overview of how we worked towards achieving the community’s goal of a connected and engaged community through the five year delivery program actions and annual plan actions are detailed in the following pages. Additional highlights relating to this goal are also included under the Strategic Programs – Financial Sustainability (page 19).

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 4.5% 1.5% 1.5% REQUIRED 92.5% 0.0%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Twitter followers 2,340 3,240 4,212 4,965 5,508 Facebook likes 6,162 8,779 14,053 20,412 24,062 Instagram followers 459 1,044 2,224 3,422 4,141 Telephone calls answered within 30 seconds^ 70% 74% 71% 78% 66% In person enquiries attended to within 5 minutes 91% 92% 91% 97% 92%

Sick leave (days)# 6.80 7.03 8.29 6.86 8.13 Workers compensation costs 1.4% 1.2% 1.0% 1.0% 1.5% ^ The range in calls is from 143,820 pa to 185,046 pa during this 5 year period # 12 month rolling average number of sick days per employee. Sick leave calculation was revised in line with Wollongong City Council’s Enterprise Agreement early in 2016-17.

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Community feedback was sought on a range of key plans and projects such as Our Wollongong 2028, Community Engagement Policy, Urban Greening Strategy, Pedestrian Plan and Housing Our Community in the Future Strategy, Port Kembla Revitalisation Plan, Keiraville and Gywnneville Movement and Access Study, Public Toilet Strategy, Fairy Creek Corridor Master Plan, City Centre and Corrimal town plans and Beaton Park Plan of Management.

Community Engagement Council social media channels have continued to A key project over the last 12 months has been the grow over the past 12 months. Facebook likes have review of Council’s Community Engagement increased by 18% in the past year while Twitter has Policy, resulting in a visual, plain English, increased by 12% and Instagram by 26%. While community focussed document. Instagram has experienced the largest audience A number of targeted engagement activities were growth, Facebook continues to be our most held throughout the year including with Aboriginal followed channel. The changes to Facebook’s young people through art as part of the Port content algorithm have impacted Council’s reach. Kembla Revitalisation Plan. Short videos continue to be one of Council’s best Council continued its commitment to creating a performing post formats on social media and this Child Friendly Wollongong engaging children will continue to be a focus over the next 12 months. directly in matters that affect them. Children Stand out posts include a video to promote the participated in various engagement sessions in reopening of the Blue Mile Tramway link (reaching relation to play space design and official openings, over 76,000 people) and another showing Council’s the Community Engagement Policy, the lifeguards moving an echidna on a beach to a safer development of the refreshed Community location (reaching over 34,000 people). Posts Strategic Plan, master plans and the State of promoting job opportunities have continued to Wollongong Children's Report. perform very well and will form part of our ongoing social media strategy. Expanding Council’s Online Profile Council media release and social media channels Partnerships with the Aboriginal Community continue to grow as a valuable source of Council undertook a number of activities and information for our community. This year we actions to support opportunities to work in issued 45 media releases, with more than 3,400 partnership with the Aboriginal community views of these releases coming directly from including: Council’s website, and more than 600 from social . Organised a Reconciliation conference media click through posts. These numbers are focusing on improving the way early separate to the traffic that would come through childhood and family support staff, who work media following the links provided on our media with the Aboriginal community, can promote release notification emails and suggests that Aboriginal Culture and reconciliation within Councils media releases reach a broader audience the services they provide. Council has worked than news organisations. closely with members from Council’s Aboriginal Reference Group, the Aboriginal Community Based Working Group (ACBWG) and 18 other organisations across the local government area, both Aboriginal and non- Aboriginal, to develop the program. The conference was held in June 2018 at the University of Wollongong Innovation Campus with over 130 people in attendance, a highlight being the 28 Elders who conducted 18% increase 12% increase 26% increase a yarning circle session sharing their Facebook Twitter Instagram knowledge and wisdom with all participants. . Provided support to Wollongong Northern District Aboriginal Community (WNDAC) to identify opportunities for funding of cultural events including the running of their NAIDOC Week.

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. Supported Barnardos South Coast’s . Programs for the aged Aboriginal worker to develop their NAIDOC . Programs for people with a disability Week program for Warrawong . Multicultural programs . Participated in the Caring for Community . Programs that have a positive impact on project, an initiative of University of crime reduction strategies Wollongong that provides information and . Projects that have a wider community benefit support around health issues for Aboriginal and build community capacity. Men. Council provides administrative support for the running of the NSW ClubGrants scheme in Wollongong. Council's quarterly Community Volunteering Illawarra Newsletters continue to be valued by In the last twelve months, 365 new volunteers were the community. referred to non-government organisations with a 91% placement rate. Highlights for the year include:

. International Volunteers Day on 5 December Community Newsletter and Council Website 2017 with two Volunteer Bridging Information Newsletters continue to be delivered by letterbox sessions held to promote volunteering to drop for the April, October and December editions, Council staff and community while the July edition goes out with the rates . Assistance to the Nowra Family Support notices. In addition, the newsletters continue to be Service (NFSS) in developing a new volunteer published on Council's website and delivered to support program similar to the 'Aunties and libraries to increase their readership. Uncles' program - included information about Work on the redesign of the new Council website insurance, volunteer management and is well underway and extensive work has been governance. A training program was also completed on the copywriting component which developed and delivered to meet their will see all content reviewed and where organisational needs appropriate re-written, to be in simple English and . Collaboration with South Coast Private Hospital more accessible language. This work will continue - two information sessions have been held with into the next annual planning period. patients on the benefits of volunteering and workplace transitions . Facilitated partnership between Big Fat Smile and Social Support Centre Based Day Care programs, where pre-school children attend day care to interact and socialise with frail older members of the community. . Volunteering Illawarra participated as guest presenter at Housing Trust Expo $452,948 . Nine Volunteer Managers Interagency 63 successful applicants meetings and ten corporate volunteer induction ClubGrants NSW funding sessions for volunteers from across all Council divisions . Delivered training session in area such as Grief and Loss, Kitchen Health and Hygiene, Risk Clubs NSW Grants Program Management, Elder Abuse (New) and WHS for In the 2017 ClubGrants NSW funding round there Volunteers were 63 successful applications who received a total of $452,948 in funding. The successful applicants’ projects covered a wide range of the key funding priority areas including: . Projects that had a ‘group’ benefit . Children’s programs aged 0-11 years . Programs for young people aged 12-24 years, especially those that assist unemployed or marginalized young people and those that live in areas with higher levels of disadvantage WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 49 | Page

Friends of Wollongong City Libraries FUTURE DIRECTIONS The Friends of Wollongong Libraries provided Over the next 12 months, we will work towards $3,000 towards Comic Gong 2018. achieving the following objectives: The Friends sponsored the Wollongong Local . Pilot and evaluate a Connecting Neighbours History Prize 2018, with an adult prize of $5,000 Grant program. and a junior prize of $2,000 for high school . Continue to lobby government for financial students ($1,000 to the student and $1,000 to the assistance to address infrastructure renewals school's library). The aim of the competition was to and provide funding for key regional projects. encourage research and writing about local people . Undertake service reviews across targeted and events while generating new materials for the areas of business operations. Local Studies collection. . Work in collaboration with the Aboriginal The Friends also provided $3,000 towards the community to develop the Aboriginal specific Book to Baton concert on 30 July 2017 in the IPAC space and its operations at the Kembla Grange theatre. Cemetery. The Friends contributed to the purchase of a large . Develop the WHS behaviour strategy and collection of Duplo for Dapto, Thirroul, Warrawong program to enhance our WHS culture through and Wollongong libraries, which has proven to be the application of identified constructive very popular with children who visit our libraries. behaviour.

Support for intergenerational interaction and integration A variety of programs have been provided through Wollongong City libraries this year to provide opportunities for intergenerational interaction and integration. The diversity of programs has ensured there is something to suit anyone interested in participating. Examples include: . movie screenings based on books . participation in Moonlight Movie events . a range of fun and educational parent and children programs . family craft activities such as making ginger bread houses for Christmas . Kids Day Out - a collaborative project with the Illawarra Children's Book Council held at Dapto Ribbonwood . Get Skilled technology programs, . Comic Gong, . Thirroul Readers and . Writers event held at Thirroul Library (attended by over 100 children and adults) . outreach participation in the Stanwell Park Festival of Flight . many other regular and one off activities designed to connect our community.

Plan for the future operation of the cremator Following the entry of a third crematorium operator in the local market, Council made the decision in March to close its ageing facility. Last cremations took place at the 59 year old site on the 29th June 2018. The adjoining Wollongong Memorial Gardens remains open for burials.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Ensure an effective community All annual deliverables on track/ongoing Director Community Services engagement framework connects the community to Council decision making Expand Council's use of social media All annual deliverables on track/ongoing Director Community Services and online options for communication and engagement A coordinated approach to All annual deliverables on track/ongoing Director Community Services communication is developed and implemented Re-establish Council’s commitment to All annual deliverables on track/ongoing Director Community Services partnering with our local Aboriginal community Continue to provide regular information All annual deliverables on track/ongoing Director Corporate Services updates to the community about Council's Financial Sustainability Review Increase opportunities for the All annual deliverables on track/ongoing Director Community Services community to connect with volunteering organisations Support community participation in non- All annual deliverables on track/ongoing Director Community Services / profit activities Director Planning + Environment Build the capability of community based All annual deliverables on track/ongoing Director Community Services organisations in managing, developing and sustaining their volunteers Support a range of projects and All annual deliverables on track/ongoing Director Community Services programs in the city Contribute to activities and programs All annual deliverables on track/ongoing Director Community Services that enhance civic pride in Wollongong Lobby for the expansion of NBN to all All annual deliverables on track/ongoing Director Infrastructure + Works suburbs within the LGA within the next five years Investigate the provision of a district 1 annual deliverables delayed. Director Community Services level community and library centre for Delayed: Plan for the Southern Suburbs the southern suburbs Community Centre and Library Efforts to acquire the site for the new community centre and library have continued. Initial scoping and consideration of design elements for the community centre and library have also commenced. Continue to participate and contribute to All annual deliverables on track/ongoing Director Community Services an integrated community service network Improve community understanding and All annual deliverables on track/ongoing Director Corporate Services awareness of Council decisions Ensure appropriate strategies and All annual deliverables on track/ongoing Director Corporate Services systems are in place, monitored and reviewed Continue to build a professional, All annual deliverables on track/ongoing Director Corporate Services customer focussed quality organisation

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Lead continuous improvement in All annual deliverables on track/ongoing Director Corporate Services Council’s health and safety culture and behaviour Coordinate a service review program 3 annual deliverables on track/ongoing, 1 Director Corporate Services with a focus on business development deferred and improvement Deferred: Undertake service reviews across targeted areas of business operations In June 2018 Council endorsed a new Council structure at Senior Management level. The operational level is currently being determined in consultation with staff. The process of reviewing the structure is likely to identify opportunities for further review and improvement and inform future service reviews to be undertaken. Deliver the Asset Management Strategy All annual deliverables on track/ongoing Director Infrastructure + Works and Improvement Plan 2012-17 Investigate provision of cremation All annual deliverables on track/ongoing Director Community Services services across the region and determine Council's role in the market Improve systems for recording All annual deliverables on track/ongoing Director Community Services community & staff ideas Ensure policies and procedures are All annual deliverables on track/ongoing Director Corporate Services regularly reviewed, updated and promoted Streamline reporting across the All annual deliverables on track/ongoing Director Corporate Services organisation and provide user friendly, plain English reports Effective and transparent financial All annual deliverables on track/ongoing Director Corporate Services management systems are in place Improve the efficiency of supply All annual deliverables on track/ongoing Director Corporate Services management in order to achieve operational efficiencies Pursue alternative funding options to All annual deliverables on track/ongoing Director Corporate Services deliver Council services and facilities Achieve an operational savings as a part All annual deliverables on track/ongoing Director Corporate Services of Council's financial sustainability Review with savings to be directed to asset renewal Reduce Council's discretionary spend All annual deliverables on track/ongoing Director Corporate Services (excluding assets) by 5% with savings to be directed to asset renewal Undertake a review of Council's All annual deliverables on track/ongoing Director Corporate Services employment conditions including the consideration of more flexible employment conditions and Enterprise Agreement

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2017-18 Continue to pursue alternative funding All annual deliverables on track/ongoing Director Corporate Services option to deliver financially sustainable services and facilities Apply for a special rate variation of All annual deliverables completed 6.13% in 2014-15, 6.23% in 2015-16 and Director Corporate Services 6.24% in 2016-17 with additional funds to be directed to asset renewal Continue to actively seek grants and All annual deliverables on track/ongoing Director Infrastructure + Works contributions to deliver core community infrastructure and services Deliver a consistent and effective All annual deliverables on track/ongoing Director Corporate Services integrated frontline customer service centre

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We have a healthy community in a liveable city

An overview of how we worked towards achieving the community’s goal of a healthy community in a liveable city through the five-year delivery program actions and annual plan actions are detailed in the following pages.

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 1.1% 4.5% 0.0% REQUIRED 92.1% 2.3%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Direct Run District Community Facilities – 247,528 244,268 240,298 232,986 254,690 Visitation* Direct Run District Community Facilities – 38,500 37,873 37,321 37,669 40,695 Utilisation* Dapto Heated Pool - Visitation 61,686 71,996 67,304 72,701 74,659 Corrimal Heated Pool - Visitation 118,883 115,187 124,027 92,844 128,211

* Numbers fluctuate from year to year depending on Council elections, room closures due to refurbishments and continuation of bookings.

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Support Newly Arrived and Refugee This information formed the basis of action Communities plans for each location and community. During the year, Council continued to host the Council partnered with Illawarra Shoalhaven bi-monthly Illawarra Refugee Issues Forum Social Investment Trust (ISSIT) to undertake (IRIF) and supported the group to develop a new Community Safety Audits and provide written Terms of Reference. reports for Warrawong, Bundaleer and Illawong The lived experience of refugee and former Gardens between February and April 2018. refugee community members was also embedded in a range of community education programs including the Illawarra Refugee Challenge, Wollongong Living Books, Muslim conversations, Ready Arrive Work (RAW) program for young people for whom English is a second language. Council also engaged with local services to plan and deliver water and surf safety and swim programs for newly arrived 78% young people and their families. satisfaction with rock pools

Collective 2518 Bellambi Placemaking Project Council continues to be an active member of the Renewal Works at Rock Pools Illawarra Shoalhaven Social Investment Trust Throughout the year, Council completed works (ISSIT) Bellambi Implementation Group. The at the Coalcliff Pool, which included repairs to group works to implement the Bellambi Action the seawall, pool floor, replacement of access Plan 2016-18 strategies and seeks to steps, upgrading of access to the pool area and encourage participation from all community construction of a new shade structure. members. Council officers participated in the It has been a challenging year at the Austinmer Our Place Bellambi check-in, held in the rock pool project site. Efforts to complete the Bellambi Surf Life Saving Club. The check-in works on the southern pool have been was a way to showcase what has been achieved continually hampered during the year by the by the community and the Collective Impact adverse conditions from tides, seas and swell. approach. The majority of the remaining works are located Specific strategies from the Bellambi Action on the eastern wall. To reduce the time exposed Plan 2016-19 being implemented included: to the adverse conditions, the work . The Bellambi Safety Group which meets on methodology was changed by manufacturing the first Thursday of every month and works precast concrete units which allowed for a to clean up rubbish and/or make areas safe faster installation. The precast units have been in Bellambi. The group participated in installed and grout infilled. Remaining minor Graffiti Removal Day in October 2017 and repair works include the installation of four Clean Up Australia Day in March 2018. small pre-cast concrete panels to plug an . Council continues to support the Bellambi existing leak in the north east corner, as well as Neighbourhood Centre through participation reinstating the stepped seat along the inside of in its committee of management. the eastern wall. These works are scheduled to be completed during Spring 2018. Council has Collective Impact Working and Management worked with the community by keeping them Groups informed on progress of the works. Council continues to be an active member of the Illawarra Shoalhaven Social Investment Trust (ISSIT) Collective Impact Working and Management groups which coordinate key organisation contributions to achieving the strategies contained in the agreed action plans for Warrawong, Bundaleer and Illawong Gardens. Council assisted in a series of community engagements with residents and key community groups/organisations in these communities to identify the main issues of need.

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Playground Renewals In February 2018, Council adopted the Council officers deliver a comprehensive renewal program of playgrounds as part of our Ageing Plan 2018-22, which sets out Play Wollongong Strategy. Renewal of the the priorities for making Wollongong a following playgrounds were pursued during great place for older people. 2017-18: . Fred Finch Park, Berkeley . Foy Avenue, Figtree

. Harry Graham Park, Figtree Positive Ageing Plan 2017-22 . The 2018 Seniors Festival was held across the Pine Trees Park, Windang city from 4 April until 15 April with Council . Ray Crump Park, Primbee coordinating the production and distribution of . Robinson Park, Gwynneville the Seniors Festival Booklet. The festival . William Sweeny Park, Wombarra included the Lady Mayoress Tea Dance on 10 . Pop Errington Park, Towradgi April in the Wollongong City Town Hall. Council . Orana Park, Unanderra hosted a range of activities at the leisure . Wetherall Park, Primbee centres, libraries, Art Gallery and through the Green Team. Council partnered with Baptist . Boyton Park, Corrimal Care and Illawarra Shoalhaven Local Health . Blaker Park, Tarrawanna District to deliver a program of eight physical . Allan Street, Port Kembla activity sessions at the outdoor fitness . Integral Energy Park, Kembla Grange equipment located at MM Beach. An average of . St James Park, Coledale 13 people attended each session that were led . King George Oval Playground, Port Kembla - by a fitness leader. The participants gained a new shade structure was erected. skills in how to safely use the equipment.

Dapto Town Centre Study Following on from the Dapto Town Centre Study, Council continued its engagement with the Dapto community to plan, develop and implement an activation project which incorporates elements of what people wanted to see in Dapto Square. The activation project includes seating, shade, Young People arts 66% panels and a play space for children; all of satisfaction with playgrounds which was installed and completed by August 2018.

Sponsorship partnerships were formed with Leisure Centres Dapto Business Chamber, Dapto Rotary, Dapto Usage across both leisure centres has Mall AMP and Dapto Leagues Club, whose continued to be strong with the introduction of valuable contributions have enriched the quality a number of new programs this year, including of the Dapto Pilot Activation project. Some classes for people with osteoarthritis and water activities undertaking as part of the project safety/ lifesaving for older adults. New group include a yarn bombing knitting cultural exercise classes such as functional training and project/ activity; installation of the Creative Arts Les Mills Grit and Cardio workouts, and the Container; and installation of a bush tucker replacement of ageing gymnasium equipment garden, a joint initiative with Endeavour Energy including group exercise bikes at Beaton Park and Greening Australia. and cardio and circuit equipment at Lakeside have also provided an increase in patronage. A draft master plan has been completed for the Beaton Park site and will be exhibited in early 2018-19 for community comment. The plan incorporates additional warm water pool space, a new six court multi-purpose hall, health and wellbeing areas along with internal upgrades of the leisure centre.

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Sportsground and Sporting Facilities Strategy Illawarra White Ribbon Walk 2016-2026 Illawarra White Ribbon Walk occurred along the The implementation of the Sports Ground and Blue Mile in November 2017, attended by Sports Facilities Strategy 2017-21 continued several hundred people from the Wollongong with a focus on sports field lighting at JJ Kelly and Shellharbour local government areas. The Park, Wollongong and the completion of theme for the walk was Walk a Mile in her Shoes preliminary planning approvals for King George and a display of women’s shoes was created at Oval, Port Kembla, Wisemans Park, the end of the walk, representing all women Gwynneville, and Hollymount Park, Woonona. who were killed by violence during the previous Works also commenced on the new synthetic 12 months. football field at Ian McLennan Oval, Kembla Grange.

Housing Study Over 300 people attended Reclaim the In July 2017, Council resolved to exhibit the Our Night March on 26 October 2017, Wollongong Housing Discussion Paper, which is ending with a rally in Crown Street the first stage in the preparation of a new Housing Strategy for the city. The second stage, Mall. a Housing Options paper is in preparation. Council has also made a submission to the NSW Department of Planning to be included in State Environmental Planning Policy No.70 I Belong in The Gong Affordable Housing. The inclusion in the policy A Council initiative is the Women’s Safety will enable Council to require developments to Project, funded by NSW Department of Justice. include the provision of dwellings which could This project focuses on reducing harassment house low to moderate income earners or key and threatening behaviour, particularly workers. targeted against women in the city centre. Council has partnered with NSW Police, Graffiti Prevention Multicultural Communities Council of the Council’s graffiti prevention Community Illawarra, Illawarra Multicultural Services and Partnership program offers support to private Strategic Community Assistance for Refugee and business property owners to remove graffiti Families (SCARF) Illawarra in the design and from their premises. The partners in this implementation of the project. program for the past year have been Dapto Rotary, NSW Illawarra Reintegration Centre, Maintenance of Alcohol Free Zones Essential Personnel and Corrective Services The existing Alcohol Free Zones (AFZs) are due NSW (Community Service Order program). for renewal by the 30 September 2018. Council Council has linked the NSW Illawarra began its review process of the existing AFZs in Reintegration Centre with local sporting groups September 2017, this includes: to remove graffiti from their sporting facilities. . Discussion and review with NSW Police This partnership program will continue to be from Lake Illawarra and Wollongong expanded next year targeting other high level Police districts which cover the areas of graffiti at facilities with sporting groups Wollongong LGA who are licensees from Council. In addition, . Conducting an audit of all seven existing Council supplies graffiti removal kits to assist AFZ’s signs located throughout community members or businesses to remove Wollongong to ensure their compliance graffiti from their premises. with legislation Graffiti Removal Day was held on the 29 October . Conducting engagement opportunities for 2017 with outstanding support from Dapto the community to have their say on the Rotary who are the community champions of existing AFZs and/ or if new ones are this event. Dapto Rotary partnered with the required. local Girl Guides group to remove a significant amount of graffiti from the pigeon club house in Unanderra.

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The Future of Our Pools Strategy Social Support team provided 49,301 The actions in the Future of Our Pools Strategy hours of service, compared to the continue to be implemented with: 46,912 hours funded to deliver. The . renewal and enhancement of works at Austinmer and Wombarra pools being demand for Social Support services undertaken in the latter part of 2017-18. continues to grow, with 527 new . key stakeholder consultation undertaken referrals this year (460 in 2016-17). on Corrimal Pool Master Plan . a technical plant and filtration audit on Helensburgh Pool being pursued . works commenced on the upgrade of Social Connection for Frail Aged People, amenities at Western Suburbs Unanderra. Young People with Disability and their Carers Social Support Services provided a variety of Hill 60 Reserve, Port Kembla - outcomes to the community to improve social Implementation of Landscape Masterplan connection for the target group. Highlights for As part of the endorsed landscape masterplan, this year include: outdoor exercise equipment, new park furniture . Three weekend cottage respite care. This and car parking along MM Beach have been program provided 72 hours of respite to four completed. Wayfinding signage along carers of people with dementia Gloucester Boulevard and MM Beach were also . Engaging with volunteers to seek feedback undertaken and renowned aboriginal artist about the structure of meetings and identify Chris Edwards is finalising a commissioned possible areas of improvement. From their artwork. feedback, the Social Support team has Options on securing the Military tunnels at Hill recently implemented a new meeting 60 are being initiated to eliminate public access structure for volunteer get togethers, which due to the preliminary costings on providing has resulted in an increased participation of safe access exceeding current and forecast volunteers operating across all services. budget allocations. . Focus groups at all Centre Based Day care facilities and the Men’s Shed, to obtain feedback from clients regarding their services. The data was used for planning purposes to ensure that the services meet the needs of customers and, if applicable, to improve the delivery of our service to the community.

. Combining Volunteer Recognition/ 418,177 visitation Christmas Lunch for Community Services 87 different tours/events with 66,139 people volunteers. The event is an opportunity to participating thank volunteers for their commitment and Botanic Garden contribution to the delivery of service to the

community.

Youth Services Wollongong Botanic Garden Wollongong Youth Services continues to Wollongong Botanic Garden highlights for facilitate the Wollongong Youth Network, 2017-18 included Sunset Cinema, Easter Egg delivering and presenting to youth and Hunt, BGANZ Open Day and Step Back in Time/ community work TAFE students. The aim of this Ghost of Courtney Puckey heritage tours and is to build capacity and professionalism in the free guided tours by the volunteer Friends. industry, along with raising the profile of The Discovery Centre increased the number of Wollongong Youth Services. events and programs over last year, with more university students and high school students taking part in education activities. Stage One of the all-access rainforest walk was completed to enhance the visitor experience and provide a new entry off Robsons Road.

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The Youth Centre also offers a number of FUTURE DIRECTIONS programs, including: Over the next 12 months, we will work towards . You Decide program, delivered in achieving the following objectives: Koonawarra and Bundaleer. This provides . Carry out design work for the recreation an opportunity for 25 young people to learn areas at all three tourist parks. about community engagement, determine a . Complete the master plan for the Beaton need in their community and develop and Park precinct. implement a strategy to address the need . Reinstate Waterfall (Garrawarra) Cemetery. using an actual budget. . Drainage works to be undertaken at Fred . The Young Women’s Forum, delivered with Finch Park Sports Field, Berkeley. young people in Cringila in partnership with Port Kembla Youth Project. The program . Investigate beach accessibility options for increased confidence and problem solving, people with disability. built networks and reduced isolation and . Implement key actions from the Corrimal increased participants’ sense of belonging. Town Centre Study: Shopfront Improvement Program. . Team Ignite provides an opportunity for young people to participate in the decision . Develop and implement a school zone car making, planning, delivery and evaluation of parking safety awareness program. music and creative performance programs and events in Wollongong. Team Ignite had 68 young people participate to build skills, confidence and knowledge in different aspects of the music, events and creative performance industry, whilst steering the creative performance and music event programs at the Wollongong Youth Service. Team Ignite facilitate projects and events that activate spaces and utilise existing resources to build a vibrant music and creative performance program for young people.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2016-17 Partner with community based All annual deliverables on track/ongoing Director Community Services organisations in the provision of services Actively engage children and young All annual deliverables on track/ongoing Director Community Services people in planning and design processes Partner with agencies and health All annual deliverables on track/ongoing Director Community Services authorities to support improvements to the region’s medical services Assess the changing profile of the All annual deliverables on track/ongoing Director Community Services community and reprioritise services appropriately

Investigate the future provision of 3 annual deliverables ongoing, 1 delayed. Director Community Services/ Aquatic Services across the local Delayed: Undertake programmed renewal Director Infrastructure + Works government area and implement works at Council's rock pools in accordance improvements with the capital works programme Austinmer Rock Pools - Council has installed the precast panels on the eastern wall of the southern pool. Sea conditions prevented the infill grouting of the panels to be completed. This has been delayed until the next available period when tide, sea and swell conditions are suitable. The community has been updated on the progress of this challenging project. Continue to undertake social, land use All annual deliverables on track/ongoing Director Community Services/ and environmental planning activities Director Planning + that assists in service planning Environment Carry out commercial business 2 annual deliverables on track/ongoing, 1 Director Community Services management of Council’s operational delayed lands Delayed: Reinstate Waterfall (Garrawarra) Cemetery. An Aboriginal Lands Claim over the site concluded in December however an appeal was lodged. The appeal is awaiting a hearing date with the Land & Environment Court. The NSW Department of Industry is awaiting the Land Claim outcome before providing any advice on our request for a licence over the land, allowing access to the site. Until this is resolved, no further action can be completed on this project. Review planning controls for priority All annual deliverables on track/ongoing Director Planning + locations Environment Provide an appropriate and 10 annual deliverables on track/ongoing, 1 Director Community Services sustainable range of quality passive delayed and active open spaces and facilities Delayed: Fred Finch Park – sports field drainage Proposed levelling and top soiling of sports field has been scheduled for September 2018 following consultation with Baseball Illawarra confirming baseball final bookings. Quotations are being sought. Policies and plans are developed, All annual deliverables on track/ongoing Director Community Services reviewed and implemented to encourage physical activity

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2016-17 Prepare a Housing Study and Strategy All annual deliverables on track/ongoing Director Planning + incorporating Affordable Housing Environment Issues In partnership with relevant agencies All annual deliverables on track/ongoing Director Planning + and networks lobby and advocate for Environment improved service levels and quality and enhanced access to service Promote and enforce compliance with All annual deliverables on track/ongoing Director Infrastructure + Works/ litter reduction Director Planning + Environment Manage and maintain public facilities All annual deliverables on track/ongoing Director Infrastructure + Works Use additional funds achieved through the All annual deliverables on track/ongoing Director Infrastructure + Works financial sustainability review for renewal of major building projects as per capital program Manage and maintain community All annual deliverables on track/ongoing Director Community Services / infrastructure portfolio with a focus on Director Infrastructure + Works asset renewal Facilitate a range of partnerships and All annual deliverables on track/ongoing Director Community Services networks to develop community safety initiatives Provide lifeguarding services at All annual deliverables on track/ongoing Director Community Services beaches (in partnership with Surf Life Saving Illawarra) and Council pools Continue to liaise with Local Area All annual deliverables on track/ongoing Director Community Services Commands on key initiatives and crime reduction strategies. Deliver projects and programs to All annual deliverables on track/ongoing Director Community Services reduce crime in the Wollongong Local Government Area Safety is considered in the planning All annual deliverables on track/ongoing Director Community Services/ and design of any development Director Planning + Environment Maintain and establish corridors and All annual deliverables on track/ongoing Director Community Services parks that strengthen open space connections and people movement. Coordinate an access improvement All annual deliverables on track/ongoing Director Infrastructure + Works program through pre-planning and renewal activities Use data to assess the current All annual deliverables on track/ongoing Director Community Services community infrastructure available, community demand and develop a strategic framework and policies to either rationalise, enhance or expand to meet hanging community needs Implement Council’s Planning, People, All annual deliverables on track/ongoing Director Community Services/ Places Strategy Director Infrastructure + Works

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Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2016-17 Develop a Regional Botanic Garden of 4 annual deliverables on track/ongoing, 1 Director Planning + Excellence delayed Environment Deferred: Facilitate the future uses of Glennifer Brae Glennifer Brae Plan of Management was prepared by consultants to address feedback from the Office of Environment and Heritage. This document will be reviewed by Council and resubmitted to the Heritage Office for endorsement early 2018-19. Provide statutory services to All annual deliverables on track/ongoing Director Community Services/ appropriately manage and maintain our Director Planning + public spaces Environment Develop a play strategy to support the All annual deliverables on track/ongoing Director Community Services planning of high quality centralised and integrated park facilities Deliver a range of recreational pursuits All annual deliverables on track/ongoing Director Community Services for older people Deliver a diverse suite of projects to the All annual deliverables on track/ongoing Director Community Services community that foster and enhance community strengths

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We have sustainable, accessible and affordable transport

An overview of how we worked towards achieving the community’s goal of sustainable, affordable and accessible transport through the five-year delivery program actions and annual plan actions are detailed in the following pages. Additional highlights relating to this goal are also included under the Strategic Programs – Connectivity / Walkability (page 24)

NOT ON TRACK/ COMPLETED DELAYED DEFERRED SCHEDULED/ ONGOING 0.0% 0.0% 0.0% REQUIRED 100.0% 0.0%

The effectiveness of the delivery program is assessed through a number of performance indicators. 2013-14 2014-15 2015-16 2016-17 2017-18 Community transport* 127,521 122,497 143,992 167,460 132,000 Capital works program $86.2M $85.8M $82.7M $90.8M $96.1M * Community Transport continues to deliver outputs significantly above the target number of 67,653 trips required by the funding agreement

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Construction of the Tramway Seawall Gong Shuttle and shared path completed ahead of The University of Wollongong and Wollongong City Council met with representatives from Transport for schedule - opened in June 2018. NSW to extend the Gong Shuttle service for another

three years. Conversations focused on maintaining

services at existing levels for weekdays, and the

frequency of service for weekends and public Active Transport Plans holidays. The weekday service remains the same The Wollongong Bike Plan was adopted in May 2014 and Sunday service reduced with service every 20 and the companion Pedestrian Plan adopted in minutes from 9:40 to 5:20pm. December 2017. Actions identified within these plans are incorporated into the Infrastructure Extend Average Lives of Footpaths (to 80 years) Delivery Program and operational programs for As part of Council’s Securing Our Future initiatives, in progressive implementation. 2014 Council extended the predicted lives Council has a forward program for footpaths and (depreciation rate) of footpaths to reduce community cycle ways valued at over $39 million over the next costs of our infrastructure. As this results in three years, including a significant increase in maintaining footpaths for a longer period prior to funding for new footpaths across the LGA. replacement, we continually monitor the condition of Major active transport projects progressed or our paths through periodic (five yearly) condition audits completed during the year include: and ongoing review of customer requests. . Grand Pacific Walk Stage 1 – continuing The footpath condition audit was last assessed in 2013. construction of the new shared path from A contract has been awarded to undertake a new Coalcliff to Stanwell Park. This crucial link is assessment and inspection, which commenced in June expected to be completed during 2018-19. 2018. More frequent inspections are carried out for high . Construction of the Tramway Seawall and shared use areas such as the city centre and foreshore. path has been completed ahead of schedule and was opened in June 2018.

. Concept designs of the Smith and Kembla streets on-road cycleway continued, which will provide dedicated access for cyclists into the city centre. Council has applied for a grant through NSW Active Transport Program to enable a detailed design. Funding submissions have also 75% satisfaction been made under this program for the Smith cycle ways/ shared pathways

Street rail underpass and 15 other active

transport projects across the city. . Council received funding to undertake an initial Extend the Lake Illawarra Cycle Way feasibility study into a rail trail through the Council continues to maintain, renew and extend historic Otford Railway Tunnel, with this project section of shared path around Lake Illawarra on continuing through 2018-19. Council land through allocation of budgets within capital and maintenance programs, such as the Park n Ride Feasibility Study reconstruction of a large section of shared path The Park and Ride initiative is identified in the outside the Illawarrra Yacht Club. The adopted Wollongong City Centre Access and redevelopment of Tallawarra Lands is likely to Movement Strategy. The feasibility assessment of a present significant opportunities to extend the path. southern city centre shuttle bus route and service to support park and ride has been completed. The Grand Pacific Walk – Stage One findings from the study will form part of the review Contract works began in May 2017 to construct the of the Inner City Parking Strategy and also the City new pathway between Coalcliff and Stanwell Park. Centre Access and Movement Strategy, both of The construction of the pathway included the which will progress in 2018-19. The feasibility of the reinforced concrete path itself, kerb and gutter, South Gong Shuttle is linked to the feasibility of a board walk, retaining walls and installation of Southern Park and Ride service. Following handrails. The works have progressed throughout completion of the initial strategy, the next stage is the year and the contracted works are scheduled to developing a business model for the projects. be completed in July 2018. The pathway in front of the new shops at Stanwell Park was completed and works are progressing on the pedestrian overpass access ramp. WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18 64 | Page

Design modifications to the proposed works along Community Transport Murrawal Road are being finalised following Community Transport Wollongong - Shellharbour substantial community consultation and works are provides a range of services to support frail older scheduled to progress by October 2018. people, people with disability and people who are transport disadvantaged to continue living Illawarra Transport Strategy independently in the community and to access Council continues to work with Transport for NSW essential services, such as social activities, medical on the delivery of agreed priorities in the Illawarra appointments and shopping. The service requires Regional Transport Plan, and request accelerated minimal promotion, as demand continues to grow delivery of key items. Example projects under beyond our expectations and the new referral investigation include the Mount Ousley Interchange, system of My Aged Care provides direct referral to Albion Park Rail Bypass, M1 intersection upgrades our service. to support West Dapto and various corridor Highlights for the year include: strategies. . Delivering 132,000 Community Transport trips During the year, Council also made submissions to . Accepting 1,316 new referrals, adding to the the state government of their Draft Transport 2056 more than 5,000 ‘active’,existing customers Strategic Plan and on the Draft NSW Freights and . State Government commencing the roll out of Ports Strategy. Council primary issues the National Disability Insurance Scheme (NDIS), communicated included: in the Illawarra region for people under 65 year . Upgrades to rail and road connections between of age. This meant all eligible customers within the Illawarra and Sydney and the South West this target group were progressively transitioned growth centres to the NDIS over the 12 months to June 2018 and . Commitment to the Maidon – Dombarton Rail funding from NSW FACS withdrawn from the Link, more recently referenced as the South service. A range of service efficiencies and West – Illawarra Rail Link (SWIRL) as a budget re-alignment were required to address commuter and freight rail link between the the loss of funding associated with the Illawarra and Macarthur regions. introduction of the NDIS. A working group has also been formed with state . Transport for NSW introducing a new agencies to support Council to progress the major information technology system, CTABS - Route review of the Wollongong City Centre Access and Match effective from September 2017, replacing Movement Strategy. This strategy will re-examine the previous manual registration, allocation and the function of all transport modes within the city reporting systems with an online portal. centre, focussing on parking, public transport and . Organising a well-received Elders Christmas active transport modes while also reviewing the Morning Tea, an opportunity to engage with our function of transport interchange within the Aboriginal Elders to ensure that the service Wollongong Station Precinct. meets their transport needs. This is now a Scoping prioritisation of actions for bus stops/ bus regular feature of the service, given the success zones to ensure compliance with the Disability of the previous two years. It was a great day, and Discrimination Act requirements is also underway. the feedback from the Elders was very positive. In addition, the Council held an end of year lunch Fowlers Road, Dapto to Fairwater Drive, Horsley to thank our volunteers for their contribution and A significant amount of progress has been made in commitment to our Social Support and the construction of the West Dapto Access Link - Community Transport services as well as to Fowlers Road to Fairwater Drive over this last year. celebrate International Volunteer Day. We have seen the completion of Stage 1A, which was . The contract for the delivery of this service was the first stage of the embankment construction from extended by Transport for NSW, for two more Fairwater Drive up to the location of the proposed years, until June 2020. overflow bridge; the near completion of Stage 1B water main diversion works, progress on the relocation of powerlines within the rail corridor and Marshall Street, the completion of Stage 1E, the overflow bridge structure and the calling of tenders for the remaining Stages 2 and 3. The tender for the main bridge and roadworks was awarded by Council in July with site work commencing in August 2018.

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FUTURE DIRECTIONS Over the next 12 months, we will work towards achieving the following objectives: . Incorporating findings of investigation for a potential second Gong Shuttle route into City Centre Access and Movement Strategy. . Undertaking an audit of accessible car parking and bus stops to be included on access map and in capital works program. . Investigating opportunities to install bike carriers on buses. . Developing an integrated and Sustainable Transport Strategy.

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STATUS OF ANNUAL PLAN 2017-18

Delivery Program 2012-2017 Status of Annual Deliverables Responsibility 5 Year Action 2016-17 Establish a strategic framework and a All annual deliverables on track/ongoing Director Infrastructure + Works plan for cycle ways and bicycle facilities within Wollongong Assess the feasibility to expand the All annual deliverables on track/ongoing Director Infrastructure + Works Gong Shuttle service to outer suburbs Improve the connectivity of the local All annual deliverables on track/ongoing Director Infrastructure + Works government area through the upgrade in our network of footpaths and cycle ways Use additional funds achieved through All annual deliverables on track/ongoing Director Infrastructure + Works the Financial Sustainability Review to accelerate the footpath renewal program by about $4M Extend the average lives of footpaths to All annual deliverables on track/ongoing Director Infrastructure + Works 80 years to create about $1M saving in depreciation annually Use funds obtained from Restart NSW All annual deliverables on track/ongoing Director Infrastructure + Works Illawarra to design and construct the Grand Pacific Walk - Stage one Work in partnership with key All annual deliverables on track/ongoing Director Infrastructure + Works stakeholders to consider the establishment of a Park n Ride commuter bus network Develop an integrated Transport All annual deliverables on track/ongoing Director Infrastructure + Works Strategy Deliver sustainable transport asset All annual deliverables on track/ongoing Director Infrastructure + Works renewal programs Allocate approximately $6M of All annual deliverables on track/ongoing Director Infrastructure + Works additional funds achieved through the Financial Sustainability Review to road resurfacing and reconstruction In collaboration with agencies deliver All annual deliverables on track/ongoing Director Planning + Environment the infrastructure required to support the first stage of the West Dapto Release Area Use funds obtained from Restart NSW All annual deliverables on track/ongoing Director Infrastructure + Works Illawarra and funds contributed by Council to construct the road link between Fowlers Road Dapto to Fairwater Drive Horsley Work with State and Government All annual deliverables on track/ongoing Director Infrastructure + Works agencies and lobby improve rail services and stations across the LGA. Work with State and Government All annual deliverables on track/ongoing Director Infrastructure + Works agencies to lobby and promote opportunities for transport to reduce travel time between Sydney and Wollongong Work with key agencies and partners to All annual deliverables on track/ongoing Director Infrastructure + Works continue and improve late night transport options

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Financial Commentary 2017-2018 1

Financial Commentary 2017-2018

2017-2018 FINANCIAL OVERVIEW This report provides an overview of Council’s 2017-2018 Financial Statements. The Financial Statements are prepared by Council to provide information in relation to Council’s financial performance and position. The Statements are prepared in accordance with Australian Accounting Standards, the NSW Local Government Act 1993 and the NSW Local Government Code of Accounting Practice and Financial Reporting (Update No 26). The Statements are independently audited by the Audit Office of NSW, reported to Council, placed on public exhibition and lodged with the Office of Local Government. The Financial Statements are made up of five key financial reports; Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows.

2017-2018 FINANCIAL OVERVIEW The 2017-2018 financial results are positive, continuing to build on the achievements of the Securing our Future Program, achieving an operating surplus before grants and contributions for capital purposes. At the end of the reporting period the Council’s financial position is financially sustainable in the short, medium and long term. Overall, Council is well placed for the future having the financial stability and capacity to manage short and medium-term challenges. While the Securing our Future Program was officially completed in 2017, Council continued the practice developed under the Program where improvements beyond plan targets are restricted for future Strategic Projects. During the year, Council added to these restricted assets and delivered recurring service enhancements and accelerated some capital projects. These funds are allocated using Council’s planning process, which encapsulates extensive community consultation. During its first year of term, the current Council worked on developing the Wollongong 2028 Community Strategic Plan and relevantly the Our Resourcing Strategy 2018-2021. Having achieved financial sustainability under the Securing our Future Program, Council will continue to rigorously maintain financial sustainability and shift focus to deliver services more effectively, efficiently and innovatively. Alongside this it will manage the anticipated significant growth in West Dapto and associated impacts. These plans and strategies will take Council into the future by building on current strengths and addressing future challenges.

Financial Commentary 2017-2018 2

2017-2018 HIGHLIGHTS

$2.57B 3.34% Total Assets Debt Service Ratio

LY $2.53B LY 3.18%

$39.4M $56.4M Capital Works - New Capital Works - Renew

LY $31M LY $59.4M

$48.8M Surplus $8.1M Surplus Net Operating Result Net Operating Result Before Capital Grants & Contributions

LY $69.5M Surplus LY $27.4M Surplus

$18.2M 2.93:1 Contributed Assets Recognised Unrestricted Current Ratio

LY $29.5M LY 2.60:1

$157.8M 4.66% Cash Assets & Investments Rates, Annual Charges, Interest & Extra Charges Outstanding

LY $167.6M LY 5.88%

Financial Commentary 2017-2018 3

ASSETS Council is the custodian of community assets with a total value of $2.57B at 30 June 2018. The composition of assets at balance date is shown as follows:

Infrastructure, Property, Plant & Equipment (IPPE) With a carrying value of $2.36B IPPE is Council’s most significant asset group representing 92% of total asset value. This asset group include roads, drains, footpaths, community facilities, recreational facilities, parks and gardens. During 2017-2018, Council achieved its target and delivered a capital works program of $95.9M including the construction and purchase of $39.4M of new assets and renewal of existing assets of $56.4M. After accounting for annual depreciation expense, the overall value of IPPE increased by $106.4M during 2017-2018. Further financial details of IPPE are shown at Note 10.

Cash and Investments Council maintained robust levels of cash and investments, with holdings of $158M at 30 June 2018. While holdings decreased compared to last year it is noted that last year’s holdings were higher than usual. Cash and investment positions over recent years are as follows:

CASH, INVESTMENTS & AVAILABLE FUNDS ($M)

YTD Actual 30 June YTD Actual 30 June YTD Actual 30 June YTD Actual 30 June 2015 2016 2017 2018

TOTAL CASH & INVESTMENTS 144.656 154.025 167.577 157.768 Less Restrictions: External 77.693 75.276 75.788 74.192 Internal 41.960 55.377 57.379 68.129 AVAILABLE CASH 25.003 23.372 34.410 15.447

Adjusted for : Current payables (34.039) (37.432) (41.617) (30.010) Receivables 26.422 24.487 34.211 37.702 AVAILABLE FUNDS 17.386 10.427 27.004 23.139 Council’s cash and investment position is robust at face-value; however these funds are subject to restriction. Council’s true cash position is more accurately depicted by considering available funds which are uncommitted and not subject to restriction. External restrictions are funds held by Council that must be spent for a specific purpose and cannot be used by Council for general operations. Internal restrictions are funds that Council has determined will be used for a specific future purpose. At 30 June 2018, Council achieved an available funds position of $23.1M, which is significantly higher than the Financial Strategy target range of 3.5% to 5.5% of operational revenue (pre-capital) or $9.6M - $15.1M. The result at balance date was uplifted by the early receipt of the first two instalments of the Financial Assistance Grant for 2018-2019 totalling $9.5M.

Financial Commentary 2017-2018 4

Measures: Cash/Liquidity Position or Council’s ability to satisfy obligations in the short term from its unrestricted activities. Strategy: Council’s strategy is to maximise the use of available funds for asset renewal by targeting a lean Unrestricted Current Ratio. Cash assets held for future waste facility requirements are captured in this ratio. As these amounts are significant, this ratio is expected to increase until payments are required. Performance: Council’s performance is on par with the Local Government Benchmark of >1.5:1 and it is reflective of a deliberate strategy to better utilise cash.

Receivables Receivables are the amount of money that is owed to Council or funds that Council has paid in advance. At 30 June 2018, receivables totalled $27M, an increase of $3.5M compared to the 2016- 2017 reporting period. The fluctuation is related to an increase in Government Grants and Subsidies receivable, which is partially offset by a decrease in Rates and Annual Charges Outstanding. Full details of receivables are provided in Note 7.

Measures: The impact of uncollected rates and other charges on liquidity and the adequacy of recovery efforts. Target: Industry standard of <5%. Performance: Council’s Debt Recovery Policy has produced a result which exceeds target and performance in recent years. This is the result of an improved debt recovery process for all classes of rate payers implemented over the last several years.

LIABILITIES At 30 June 2018 Council’s Total Liabilities were $158.4M. The composition of Council’s Total Liabilities is shown below. Provisions: Account for 59.9% of Council’s Liabilities with the most significant provisions relating to Employee Leave Entitlements [$47.9M], Waste Depot Remediation Provision [$41.3M], Workers’ Compensation Provision [$4.9M] and Self-Insurance [$0.8M]. Payables: Account for 19.4% of Council’s Liabilities. The most significant payables being goods and services received and capital expenditure incurred but not yet paid for, and accrued expenditure. Borrowings: Account for 20.7% of Council’s Liabilities and relate to the interest free Infrastructure Loan from the State Government secured in 2010 and the subsidised Local Infrastructure Renewal Scheme Programs (1, 2 and 3) secured over the previous five financial years.

Financial Commentary 2017-2018 5

Provisions Provisions decreased during 2017-2018 by $2M. The decrease is mainly attributable to decreased valuation for future remediation works at Whytes Gully waste facility [$2.9M] offset by increased Workers’ Compensation [$0.7M].

Borrowings Council continues to remain a relatively low debt user. In 2017-2018 Council did not undertake additional borrowings, all activity related to the repayment of previously secured loans. In prior years Council took advantage of borrowing opportunities enabling it to accelerate specific capital programs. The loan facilities which Council has in place include an interest free infrastructure loan from the NSW State Government for West Dapto Access Works, which was secured in 2010 for a 10 year term which will continue to be repaid over the next three years. Council also has subsidised loans under the Local Government Infrastructure Renewal Scheme (LIRS). Funds were secured under LIRS rounds 1, 2 and 3. The projects funded under round 1 (Citywide Footpaths and Shared Path Renewal and Missing Links Construction Program) and round 2 (Upgrade Berkeley and Corrimal Community Centres and Thirroul Pavilion and Kiosk) are complete. The project funded by the round 3 applications, (the West Dapto Access Project to construct Fowlers Road to Fairwater Drive) is still active. Repayment of LIRS loans will continue in accordance with the various payment schedules until 2025. Measures: The proportion of revenues that is required to meet Council’s annual loan repayments. Target: Council’s Financial Strategy allows for a ratio of 4%. Performance: A low level of debt is reflected in Council’s Debt Service Ratio of 3.34%. This is exceptionally low in comparison to the Local Government benchmark ratio of <10%, and is within Council’s own Strategy. The Debt Service Ratio increased slightly in the 2017- 2018 reporting period. This is due to a decrease in Council’s income from continuing operations.

Operational Performance - Income & Expenses Council achieved a Net Operating Surplus from Continuing Operations of $48.8M in 2017-2018 in comparison to a Surplus of $69.5M in 2016-2017. Council’s underlying measure of long term operational performance, the Operational Result before Capital Grants and Contributions, is a surplus of $8.1M, compared to a surplus of $27.4M in 2016-2017. The 2017-2018 result compares favourably to the original budget and meets Council’s long term financial target of achieving a small surplus. The decrease on prior year result is due to several one-off events that occurred in 2016-2017.

Income Council’s Income from Continuing Operations for 2017-2018 was $314.8M compared to a prior year result of $324.5M. Although there was an increase in Rates & Annual Charges of $6.9M, decreases in other revenue categories combined to offset this and cause an overall decrease, including:  Decreased grants & contributions operating [$8.3M] due to the timing of Financial Assistance Grant receipts from the Federal Government. The equivalent of a full year grant was received in 2017-2018 compared to one and a half years grant in 2016-2017.  Decreased other revenues [$3.9M] as 2016-2017 included recognition of a one off rebate for the cessation of the Carbon Tax Legislation of $4.2M.  Decreased user fees and charges [$2.7M] mainly associated with lower revenue at Whytes Gully Waste Facility the result of reduced use by major commercial customers.  Decreased Grants and Contributions Capital [$1.4M] due to a lower level of subdivision dedications which are impacted by the timing of development activity, largely offset by an

Financial Commentary 2017-2018 6

increase in capital grants due to funding for West Dapto Infrastructure in particular for Fowlers Road. The composition of Council’s revenue remained reasonably consistent compared to previous years as depicted in the table below. Exceptions include Rates and Annual Charges which increased in its portion of total income from continuing operations [from 57% to 61%] in favour of Grants and Contributions Capital which decreased [from 12% to 10%] its portion of total income from continuing operations. It is noted that Council does not control the flow of asset dedications by developers and contributions vary from year to year.

Income from Rates and Annual Charges, Council’s largest revenue stream, totalled $191.5M in 2017-2018, an increase of $6.9M on the prior year. The increase is due to indexation and an increase in residential rates resulting from subdivision growth in West Dapto and an increase in multi-unit developments. In addition, there was also an increase in revenue from domestic waste management that is partly due to a discount in 2016-2017 charges for carbon tax payments collected in previous years and increased costs of providing the service and growth in services as the City continues to grow.

Financial Commentary 2017-2018 7

Measures: The degree of Council's dependence upon revenue from rates and annual charges and the security of Council's income. Performance: In this ratio indicates an increased level of dependence on rates and annual charges revenue compared to last year. It is noted that this year’s performance is in line with the years prior to 2016-2017 and last year’s result was skewed by an increase in the flow of developer contributions which did not recur this year. As predicted, this ratio is subject to some fluctuation, and the current year performance is as expected.

Expenses Expenses from Continuing Operations for 2017-2018 totalled $266M, an increase on prior year expenditure of $10.9M. This increase can predominately be explained by Materials and Contracts rising from $47M in 2016-2017 to $53.8M in 2017-2018 alongside the $4.7M increase in Employee Benefits and On-Costs. This is partly due to impact of normal price increases such as enterprise agreement rises as well as an increase in volume of specific projects undertaken that required additional resources. In terms of composition, the proportion of each expenditure category against total expenses from continuing operations has remained consistent compared to prior years. Material budget variations from the 2017-2018 year for income and expenditure items are detailed in Note 21 of the statements.

Financial Commentary 2017-2018 8

Wollongong City Council

Historical Financial Data

Income Statement

Actual Actual Actual Actual 2014/15 2015/16 2016/17 2017/18 Notes $'000 $'000 $'000 $'000 Income from Continuing Operations Revenue: Rates & Annual Charges 3a 166,849 174,149 184,530 191,449 User Charges & Fees 3b 32,851 31,252 37,491 34,805 Interest and Investment Revenue 3c 5,689 5,597 5,909 5,162 Other Revenues 3d 11,965 12,891 14,418 10,551 Grants & Contributions provided for Operating Purposes 3e,f 30,319 30,461 39,639 31,364 Grants & Contributions provided for Capital Purposes 3e,f 22,033 26,548 42,022 40,637 Other Income: - Net Gains from the Disposal of Assets 5 3,533 - - - Fair Value Increment on Investment Property 11 ---5 Profit from interests in Joint Ventures & Associates - - - - Entities using the equity method 17 - 150 525 803 Total Income from Continuing Operations 273,239 281,048 324,534 314,776 Expenses from Continuing Operations Employee Benefits & On-Costs Employee Benefits & On-Costs 4a 95,399 103,547 103,139 107,843 Borrowing Costs 4b 4,037 4,223 4,071 3,819 Materials & Contracts 4c 45,647 47,144 47,032 53,709 Depreciation & Amortisation 4d 60,763 61,882 61,271 60,067 Impairment 4d -6 -- Other Expenses 4e 35,777 34,782 35,594 40,211 Net Losses from the Disposal of Assets 5 - 1,627 3,960 361 Loss from interests in Joint Ventures & Associates 19 22 - - Total Expenses from Continuing Operations 241,645 253,211 255,067 266,010

Operating Result from Continuing Operations 31,594 27,837 69,467 48,766

NET OPERATING RESULT FOR THE YEAR 31,594 27,837 69,467 48,766

Less: Grants & Contributions provided for Capital Purposes 3e,f 22,033 26,548 42,022 40,637 Net Operating Result for the year before Grants and Contributions provided for Capital Purposes 9,561 1,289 27,445 8,129

This Statement is to be read in conjunction with the Notes in the body of the financial statements.

Financial Commentary 2017-2018 9

Wollongong City Council

Historical Financial Data

Statement of Financial Position

Actual Actual Actual Actual 2014/15 2015/16 2016/17 2017/18 Notes $'000 $'000 $'000 $'000

ASSETS Current assets Cash & cash equivalents 6a 33,580 17,747 23,534 26,491 Investments 6b 102,076 126,193 119,458 109,162 Receivables 7 22,109 21,280 23,531 27,036 Inventories 8 6,040 6,027 298 306 Other 8 4,313 3,207 10,680 10,666 Assets held for sale (previously non-current) 9 - - 6,381 - Total current assets 168,118 174,454 183,882 173,661

Non-current assets Cash assets 6a - - - - Investments 6b 9,000 10,085 24,585 22,115 Receivables 7 - - - - Inventories 8 - - 5,791 5,835 Infrastructure, property, plant & equipment 10 2,250,472 2,270,419 2,309,628 2,356,306 Investments accounted for using the equity method 17 1,160 1,310 1,835 2,638 Investment property 11 2,750 4,775 4,775 4,780 Intangible assets 12 1,220 1,043 653 388 Non-current assets classified as 'held for sale' - - Other - - - - Total non-current assets 2,264,602 2,287,632 2,347,267 2,392,062 TOTAL ASSETS 2,432,720 2,462,086 2,531,149 2,565,723

LIABILITIES Current liabilities Payables 13 34,039 34,238 38,660 26,754 Income received in advance 13 6,369 3,194 2,957 3,256 Interest bearing liabilities 13 47,487 6,690 7,513 7,716 Provisions 14 - 50,683 48,853 50,377 Total current liabilities 87,895 94,805 97,983 88,103

Non-current liabilities Payables 13 - - - 700 Interest bearing liabilities 13 39,758 33,940 32,188 25,039 Provisions 14 42,554 44,031 48,121 44,566 Total non-current liabilities 82,312 77,971 80,309 70,305 TOTAL LIABILITIES 170,207 172,776 178,292 158,408

NET ASSETS $ 2,262,513 2,289,310 2,352,857 2,407,315

EQUITY Retained earnings 15 1,251,040 1,302,643 1,389,905 1,441,990 Revaluation reserves 15 1,011,473 986,667 962,952 965,325 Council Equity Interest 2,262,513 2,289,310 2,352,857 2,407,315 Minority Equity Interest - - - - TOTAL EQUITY $ 2,262,513 2,289,310 2,352,857 2,407,315

This Statement is to be read in conjunction with the Notes in the body of the financial statements..

Financial Statements 2018

Wollongong City Council

General Purpose Financial Statements for the year ended 30 June 2018

Contents Page

1. Statement by Councillors and Management 2

2. Primary Financial Statements:

– Income Statement 3 – Statement of Comprehensive Income 4 – Statement of Financial Position 5 – Statement of Changes in Equity 6 – Statement of Cash Flows 7

3. Notes to the Financial Statements 8

4. Independent Auditor’s Reports:

– On the Financial Statements (Sect 417 [2]) 81 – On the Conduct of the Audit (Sect 417 [3])

Overview

Wollongong City Council is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:

41 Burelli Street Wollongong NSW 2500

Council’s guiding principles are detailed in Chapter 3 of the LGA and includes:

 principles applying to the exercise of functions generally by council,  principles to be applied when making decisions,  principles of community participation,  principles of sound financial management, and  principles for strategic planning relating to the development of an integrated planning and reporting framework.

A description of the nature of Council’s operations and its principal activities are provided in Note 2(b).

Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimum cost. All press releases, financial statements and other information are publicly available on our website: www.wollongong.nsw.gov.au.

page 1

Financial Statements 2018

Wollongong City Council

X3A0T Income Statement for the year ended 30 June 2018

Original unaudited budget Actual Actual 2018 $ ’000 Notes 2018 2017

Income from continuing operations Revenue: 190,940 Rates and annual charges 3a 191,449 184,530 35,691 User charges and fees 3b 34,805 37,491 4,321 Interest and investment revenue 3c 5,162 5,909 9,705 Other revenues 3d 10,551 14,418 20,838 Grants and contributions provided for operating purposes 3e,f 31,364 39,639 44,858 Grants and contributions provided for capital purposes 3e,f 40,637 42,022 Other income: – Fair value increment on investment property 11 5 – Net share of interests in joint ventures and – associates using the equity method 17 803 525

306,353 Total income from continuing operations 314,776 324,534

Expenses from continuing operations 110,205 Employee benefits and on-costs 4a 107,843 103,139 3,849 Borrowing costs 4b 3,819 4,071 52,052 Materials and contracts 4c 53,709 47,032 64,340 Depreciation and amortisation 4d 60,067 61,271 39,480 Other expenses 4e 40,211 35,594 – Net losses from the disposal of assets 5 361 3,960

269,926 Total expenses from continuing operations 266,010 255,067

36,427 Operating result from continuing operations 48,766 69,467

36,427 Net operating result for the year 48,766 69,467

36,427 Net operating result attributable to Council 48,766 69,467

Net operating result for the year before grants and (8,431) contributions provided for capital purposes 8,129 27,445

This statement should be read in conjunction with the accompanying notes. page 3 Financial Statements 2018

Wollongong City Council

X3A1T Statement of Comprehensive Income for the year ended 30 June 2018

$ ’000 Notes 2018 2017

Net operating result for the year (as per Income Statement) 48,766 69,467

Other comprehensive income:

Amounts that will not be reclassified subsequently to the operating result

Gain (loss) on revaluation of IPP&E 10a 5,692 (511) Impairment (loss) reversal relating to IPP&E 10a – (760) Total items which will not be reclassified subsequently to the operating result 5,692 (1,271)

Total other comprehensive income for the year 5,692 (1,271)

Total comprehensive income for the year 54,458 68,196

Total comprehensive income attributable to Council 54,458 68,196

This statement should be read in conjunction with the accompanying notes. page 4 Financial Statements 2018

Wollongong City Council

X3A2T Statement of Financial Position as at 30 June 2018

$ ’000 Notes 2018 2017

ASSETS Current assets Cash and cash equivalents 6a 26,491 23,534 Investments 6b 109,162 119,458 Receivables 7 27,036 23,531 Inventories 8 306 298 Other 8 10,666 10,680 Non-current assets classified as ‘held for sale’ 9 – 6,381 Total current assets 173,661 183,882

Non-current assets Investments 6b 22,115 24,585 Inventories 8 5,835 5,791 Infrastructure, property, plant and equipment 10 2,356,306 2,309,628 Investments accounted for using the equity method 17 2,638 1,835 Investment property 11 4,780 4,775 Intangible assets 12 388 653 Total non-current assets 2,392,062 2,347,267 TOTAL ASSETS 2,565,723 2,531,149

LIABILITIES Current liabilities Payables 13 26,754 38,660 Income received in advance 13 3,256 2,957 Borrowings 13 7,716 7,513 Provisions 14 50,377 48,853 Total current liabilities 88,103 97,983

Non-current liabilities Payables 13 700 – Borrowings 13 25,039 32,188 Provisions 14 44,566 48,121 Total non-current liabilities 70,305 80,309 TOTAL LIABILITIES 158,408 178,292 Net assets 2,407,315 2,352,857

EQUITY Accumulated surplus 15 1,441,990 1,389,905 Revaluation reserves 15 965,325 962,952 Total equity 2,407,315 2,352,857

This statement should be read in conjunction with the accompanying notes. page 5 Financial Statements 2018 Wollongong City Council

X4A0T Statement of Changes in Equity for the year ended 30 June 2018 2018 2018 IPP&E 2017 IPP&E Restated Accumulated revaluation Total Accumulated revaluation Total $ ’000 Notes surplus reserve equity surplus reserve equity

Opening balance 1,389,905 962,952 2,352,857 1,302,643 986,667 2,289,310 Correction of prior period errors 15 (b) – – – 7,134 (11,783) (4,649) Restated opening balance 1,389,905 962,952 2,352,857 1,309,777 974,884 2,284,661

Net operating result for the year 48,766 – 48,766 69,467 – 69,467 Other comprehensive income – Gain (loss) on revaluation of IPP&E 10a – 5,692 5,692 – (511) (511) – Impairment (loss) reversal relating to IPP&E 10a – – – – (760) (760) Other comprehensive income – 5,692 5,692 – (1,271) (1,271)

Total comprehensive income (c&d) 48,766 5,692 54,458 69,467 (1,271) 68,196

Transfers between equity items 3,319 (3,319) – 10,661 (10,661) –

Equity – balance at end of the reporting period 1,441,990 965,325 2,407,315 1,389,905 962,952 2,352,857

This statement should be read in conjunction with the accompanying notes. page 6 Financial Statements 2018

Wollongong City Council

X3A3T Statement of Cash Flows for the year ended 30 June 2018

Original unaudited budget Actual Actual 2018 $ ’000 Notes 2018 2017

Cash flows from operating activities Receipts: 189,531 Rates and annual charges 193,451 182,005 35,691 User charges and fees 35,362 39,819 4,321 Investment and interest revenue received 5,426 5,464 62,096 Grants and contributions 50,700 57,871 – Bonds, deposits and retention amounts received 591 775 9,443 Other 23,198 24,784 Payments: (108,700) Employee benefits and on-costs (107,925) (102,860) (90,282) Materials and contracts (65,774) (60,479) (1,293) Borrowing costs (1,263) (1,447) – Bonds, deposits and retention amounts refunded (1,543) (1,162) – Other (52,022) (43,138) 100,807 Net cash provided (or used in) operating activities 16b 80,201 101,631

Cash flows from investing activities Receipts: (370) Sale of investment securities 67,557 69,530 1,750 Sale of infrastructure, property, plant and equipment 10,923 3,239 Payments: – Purchase of investment securities (54,661) (76,641) (91,373) Purchase of infrastructure, property, plant and equipment (93,506) (90,256) – Purchase of real estate assets (44) (57) (89,993) Net cash provided (or used in) investing activities (69,731) (94,185)

Cash flows from financing activities Receipts: – Proceeds from borrowings and advances – 5,500 Payments: (7,486) Repayment of borrowings and advances (7,513) (7,159) (7,486) Net cash flow provided (used in) financing activities (7,513) (1,659)

3,328 Net increase/(decrease) in cash and cash equivalents 2,957 5,787

136,065 Plus: cash and cash equivalents – beginning of year 16a 23,534 17,747

139,393 Cash and cash equivalents – end of the year 16a 26,491 23,534

Additional Information:

plus: Investments on hand – end of year 6b 131,277 144,043 Total cash, cash equivalents and investments 157,768 167,577

This statement should be read in conjunction with the accompanying notes. page 7 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X5A0T Contents of the notes accompanying the financial statements

Note Details Page

1 Basis of preparation 9 2(a) Council functions/activities – financial information 13 2(b) Council functions/activities – component descriptions 14 3 Income from continuing operations 15 4 Expenses from continuing operations 22 5 Gains or losses from the disposal of assets 27 6(a) Cash and cash equivalent assets 28 6(b) Investments 28 6(c) Restricted cash, cash equivalents and investments – details 30 7 Receivables 32 8 Inventories and other assets 33 9 Non-current assets classified as held for sale (and disposal groups) 34 10(a) Infrastructure, property, plant and equipment 35 10(b) Infrastructure, property, plant and equipment – current year impairments 37 11 Investment property 38 12 Intangible assets 39 13 Payables and borrowings 40 14 Provisions 42 Accumulated surplus, revaluation reserves, changes in accounting 15 46 policies, changes in accounting estimates and errors 16 Statement of cash flows – additional information 47 17 Interests in other entities 48 18 Commitments for expenditure 51 19 Contingencies and other liabilities/assets not recognised 52 20 Financial risk management 54 21 Material budget variations 57 22 Fair value measurement 59 23 Related party transactions 71 24 Events occurring after the reporting date 72 25 Statement of developer contributions 73 26 Financial result and financial position by fund 76 27(a) Statement of performance measures – consolidated results 76

Additional council disclosures (unaudited)

27(b) Statement of performance measures – consolidated results (graphs) 78 28 Council information and contact details 80

page 8

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 1. Basis of preparation

These financial statements were authorised for issue by Council on 24/09/2018. Council has the power to amend and reissue these financial statements.

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Australian Accounting Interpretations, the Local Government Act 1993 (NSW) and Regulations, and the Local Government Code of Accounting Practice and Financial Reporting. Council is a not for-profit entity for the purpose of preparing these financial statements. The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars.

Full dollars have been used in Note 23 Related party disclosures in relation to the disclosure of specific related party transactions.

Unless otherwise indicated, all amounts disclosed in the financial statements are actual amounts.

Specific budgetary amounts have been included for comparative analysis (to actuals) in the following reports and notes:

. Income statement . Statement of cash flows . Note 21 – Material budget variations and are clearly marked.

(a) New and amended standards adopted by Council

Council adopted the following Australian accounting standard amendments for these financial statements:

. AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

This disclosure Initiative helps users of financial statements to better understand changes in an entity’s debt.

Additional disclosures relating to changes in liabilities arising from financing activities (including both changes arising from cash flows and non-cash changes) have been incorporated in these financial statements at Note 13 (c).

. AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash- Generating Specialised Assets of Not-for-Profit Entities

This Standard means that Not-for-profit entities (and therefore Council) no longer need to consider AASB 136 Impairment of Assets for non-cash-generating specialised assets at fair value.

Instead it is expected that for Not-for-profit entities holding non-cash-generating assets the recoverable amount of these assets is expected to be materially the same as fair value, determined under AASB 13 Fair Value Measurement.

page 9

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 1. Basis of preparation (continued)

(b) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities and certain classes of infrastructure, property, plant and equipment and investment property.

(c) Significant accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Council's accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Council and that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

Council makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

(i) estimated fair values of investment properties –refer Note 11,

(ii) estimated fair values of infrastructure, property, plant and equipment – refer Note 10,

(iii) estimated tip remediation provisions – refer Note 14,

(iv) employee benefit provisions – refer Note 14.

Significant judgements in applying the Council's accounting policies

(v) Impairment of receivables

Council has made a significant judgement about the impairment of a number of its receivables in Note 7.

Monies and other assets received by Council

(a) The Consolidated Fund

In accordance with the provisions of Section 409(1) of the Local Government Act 1993 (NSW), all money and other assets received by Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund.

(b) The Trust Fund

In accordance with the provisions of Section 411 of the Local Government Act 1993 (NSW) (as amended), a separate and distinct Trust Fund is maintained to account for all money and other assets received by the Council in trust which must be applied only for the purposes of, or in accordance with the trusts relating to those monies. Trust monies and other assets subject to Council’s control have been included in these reports.

page 10

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 1. Basis of preparation (continued)

The following Trust monies and other assets are held by Council but are not considered to be under the control of Council and therefore are excluded from these financial statements:

. WCC Trust Account (deposits from sale of land/properties due to unpaid rates) . Lord Mayor’s Relief Fund . Art Gallery (bequeaths/donations) . Environment Foundation Gift Trust

A separate statement of monies held in the Trust Fund is available for inspection at the Council office by any person free of charge.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which that are recoverable from, or payable to the taxation authority are presented as operating cash flows.

New accounting standards and interpretations issued not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period and which have not been applied.

As at the date of authorisation of these financial statements, Council considers that the standards and interpretations listed below will have an impact upon future published financial statements ranging from additional and / or revised disclosures to actual changes as to how certain transactions and balances are accounted for.

Effective for annual reporting periods beginning on or after 1 July 2018

• AASB 9 Financial Instruments

This replaces AASB 139 Financial Instruments: Recognition and Measurement, and addresses the classification, measurement and disclosure of financial assets and liabilities.

The standard introduces a new impairment model that requires impairment provisions to be based on expected credit losses, rather than incurred credit losses.

Effective for annual reporting periods beginning on or after 1 July 2019

• AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

page 11

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 1. Basis of preparation (continued)

AASB 15 will replace AASB 118 Revenue, AASB 111 Construction Contracts and a number of Interpretations. AASB 2016-8 provides Australian requirements and guidance for not-for-profit entities in applying AASB 9 and AASB 15, and AASB 1058 will replace AASB 1004 Contributions.

Together they contain a comprehensive and robust framework for the recognition, measurement and disclosure of income including revenue from contracts with customers.

While Council is still reviewing the way that income is measured and recognised to identify whether there will be any material impact arising from these standards, these standards may affect the timing of the recognition of some grants and donations.

• AASB 16 Leases

Council is currently a party to leases that are not recognised in the Statement of Financial Position.

It is likely that some of these leases will need to be included in the Statement of Financial Position when this standard comes into effect.

A lease liability will initially be measured at the present value of the lease payments to be made over the lease term.

A corresponding right-of-use asset will also be recognised over the lease term.

Council has not elected to apply any pronouncements before their operative date in these financial statements.

page 12

Financial Statements 2018 Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X7A0T Note 2(a). Council functions/activities – financial information

$ ’000 Income, expenses and assets have been directly attributed to the following functions/activities. Details of these functions/activities are provided in Note 2(b).

Grants included in Total assets held Income from Expenses from Operating result from income from continuing (current and non- Functions/activities continuing operations continuing operations continuing operations operations current)

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Planning and engagement 13,355 9,189 26,099 20,498 (12,744) (11,309) 1,369 434 269,637 277,231 Environment 48,375 46,793 62,198 60,968 (13,823) (14,175) 1,899 1,800 354,637 354,226 Transport services/infrastructure 17,113 12,795 48,466 46,384 (31,353) (33,589) 14,130 9,868 457,146 398,448 Community services/facilities 9,033 9,461 32,730 31,679 (23,697) (22,218) 4,758 4,736 31,089 30,897 Recreation and open space 12,274 11,939 45,762 45,547 (33,488) (33,608) 209 35 93,734 92,541 Regulatory services and safety 8,417 8,656 18,574 18,238 (10,157) (9,582) 521 666 1,641 1,675 Governance and internal services 188,042 196,235 32,181 31,753 155,861 164,482 18,832 25,828 1,357,839 1,376,131 Contributed Assets 18,167 29,466 – – 18,167 29,466 – – – –

Total functions and activities 314,776 324,534 266,010 255,067 48,766 69,467 41,718 43,367 2,565,723 2,531,149

page 13 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X8A0T Note 2(b). Council functions/activities – component descriptions

Details relating to the Council’s functions/activities as reported in Note 2(a) are as follows:

Planning and engagement Infrastructure Planning and Support, City Centre Management, Land Use Planning, Public Relations, Economic Development, Strategy and Planning

Environment Waste Management, Stormwater Services, Natural Area Management, Environmental Planning and Programs

Transport services/infrastructure Transport Services and Infrastructure works

Community services/facilities Libraries, Cultural Services, Community Facilities, Age and Disability Services, Crematorium and Cemeteries, Community Programs, Youth Services

Recreation and open space Parks and Sports fields, Aquatic Services, Tourist Parks, Leisure Centres, Botanic Gardens

Regulatory services and safety Emergency Management, Development Assessment, Regulatory Control, Public Health

Governance and internal services Governance and Administration, Human Resources, Financial Services, Customer Service, Property Services, Information Technology, Internal Services

Contributed Assets Contributed assets relate mainly to the handover of transport and stormwater assets from various subdivisions in the West Dapto area.

page 14 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A18T Note 3. Income from continuing operations

$ ’000 2018 2017

(a)X9A5T Rates and annual charges

Ordinary rates Business 45,436 45,788 Farmland 302 316 Mining 897 1,072 Residential 108,969 105,081 Abandonments (1) (94) (140) Total ordinary rates 155,510 152,117

Special rates City centre 395 418 Mall 1,044 1,031 Total special rates 1,439 1,449

Annual charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611) Domestic waste management services 32,696 29,183 Stormwater management services 1,817 1,787 Abandonments – annual charges (1) (13) (6) Total annual charges 34,500 30,964

TOTAL RATES AND ANNUAL CHARGES 191,449 184,530

(1) Abandonments refer to amounts owed to Council that have been written off due to the property being exempted of rates, pensioner interest being waived, voluntary Council rebates, postponed rates and voluntary conservation agreements as per the OLG Rating and Revenue Raising Manual 2007.

Council has used 2016 year valuations provided by the NSW Valuer General in calculating its rates.

Accounting policy for rates and annual charges Rates, annual charges, grants and contributions (including developer contributions) are recognised as revenue when the Council obtains control over the assets comprising these receipts. Developer contributions may only be expended for the purposes for which the contributions were required, but the Council may apply contributions according to the priorities established in work schedules.

Control over assets acquired from rates and annual charges 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.

page 15 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

$ ’000 2018 2017

(b)X9A6T User charges and fees

Specific user charges (per s.502 – specific ‘actual use’ charges) Waste management services (non-domestic) 11,062 13,282 Total specific user charges 11,062 13,282

Other user charges and fees (i) Fees and charges – statutory and regulatory functions (per s.608) Contestable building services 334 294 Inspection services 507 530 Planning and building regulation 2,874 3,003 Registration fees 252 204 Section 149 certificates (EPA Act) 587 587 Section 603 certificates (rating certificate) 316 305 Section 611 charges (occupation of land) 187 188 Other 45 38 Total fees and charges – statutory/regulatory 5,102 5,149

(ii) Fees and charges – other (incl. general user charges (per s.608)) Additional waste services 117 108 Art gallery 9 12 Car parking 823 815 Credit card payment processing fee 124 150 Crematorium and cemeteries 2,219 2,623 Golf course 549 519 Health inspections 290 287 Hire charges 589 580 Leaseback fees – Council vehicles 710 714 Library 44 60 Marketing 39 33 Outdoor dining 91 131 Parking meters 1,262 1,271 Pre-lodgement meeting fees 127 98 Recreation 3,984 3,985 Road opening permits 271 267 Stallholder fees 103 84 Tourist parks 6,961 6,911 Tree management requests 93 95 Design review meeting application fees 150 117 Other 86 200 Total fees and charges – other 18,641 19,060 TOTAL USER CHARGES AND FEES 34,805 37,491

Accounting policy for user charges and fees User charges and fees are recognised as revenue when the service has been provided.

page 16 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

$ ’000 2018 2017

(c)X9A7T Interest and investment revenue (including losses)

Interest – Overdue rates and annual charges (incl. special purpose rates) 597 597 – Cash and investments 4,435 4,658 Fair value adjustments – Fair valuation movements in investments (at fair value or held for trading) 130 654 TOTAL INTEREST AND INVESTMENT REVENUE 5,162 5,909

Interest revenue is attributable to: Unrestricted investments/financial assets: Overdue rates and annual charges (general fund) 597 597 General Council cash and investments 2,566 3,406 Restricted investments/funds – external: Development contributions – Section 7.11 580 510 Unexpended infrastructure loan 226 217 Other externally restricted assets 1,193 1,179 Total interest and investment revenue recognised 5,162 5,909

Accounting policy for interest and investment revenue Interest income is recognised using the effective interest rate at the date that interest is earned.

page 17 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

$ ’000 Notes 2018 2017

(d)X9A8T Other revenues

Carbon tax rebate – 4,174 Diesel rebate 207 209 Energy saving certificates – 14 Fines 700 749 Fines – parking 2,336 2,500 Insurance claim recoveries 302 415 Legal fees recovery – rates and charges (extra charges) 271 144 Legal settlements 50 34 Outgoings reimbursements 125 136 Reimbursements 486 375 Rental income – investment property 11 347 339 Rental income – other council properties 4,400 4,313 Sales – general 709 547 Sponsorship and promotional income 71 54 Other 547 415 TOTAL OTHER REVENUE 10,551 14,418

Accounting policy for other revenue Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Council and specific criteria have been met for each of the Council’s activities as described below. Council bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Parking fees and fines are recognised as revenue when the service has been provided, or when the penalty has been applied, whichever occurs first.

Rental income is accounted for on a straight-line basis over the lease term.

Sales - general are recognised when physical possession has transferred to the customer which is deemed to be the point of transfer of risks and rewards.

Other income is recorded when the payment is due, the value of the payment is notified, or when the payment is received; whichever occurs first.

page 18 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

2018 2017 2018 2017 $ ’000 Operating Operating Capital Capital

(e)X9A17T Grants

General purpose (untied) Current year allocation Financial assistance 18,655 26,482 – – Other Pensioners’ rates subsidies – general component 1,551 1,677 – – Total general purpose 20,206 28,159 – –

Specific purpose Pensioners’ rates subsidies: – Domestic waste management 429 463 – – Arts and culture 82 79 – – Buildings – – 600 7 Community development and support 302 364 – – Economic development 289 234 – – Emergency services 439 593 – – Environmental management and enhancement 74 175 – – Environmental protection 82 73 – – Floodplain and stormwater management 87 65 620 – Footpaths and cycleways – – 454 761 HACC community transport 2,591 2,518 – – Heritage and cultural 254 18 31 18 Library 480 477 – – LIRS subsidy 992 1,113 – – Local bus route subsidy 56 62 – – Natural area management 146 184 – – Parks, gardens and sportsfields 60 – 71 – People and learning 36 43 – – Playgrounds – – 27 – Recreation and culture – – 41 – Strategic city planning 59 97 – – Street lighting 684 671 – – Transport (roads to recovery) – – 1,408 2,857 Transport (other roads and bridges funding) 22 – 9,517 2,126 Voluntary purchase scheme – – 39 482 Waste performance improvement 236 430 – – Wollongong multi service outlet 1,304 1,298 – – Total specific purpose 8,704 8,957 12,808 6,251 Total grants 28,910 37,116 12,808 6,251

Grant revenue is attributable to: – Commonwealth funding 22,195 29,773 3,872 3,307 – State funding 6,715 7,343 8,936 2,944 28,910 37,116 12,808 6,251

page 19 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

2018 2017 2018 2017 $ ’000 Notes Operating Operating Capital Capital

(f)X9A9T Contributions

Developer contributions: (s7.4 & s7.11 – EP&A Act, s64 of the LGA):

Cash contributions S 7.4 – contributions using planning agreements – – 141 – S 7.11 – contributions towards amenities/services – – 3,915 1,427 S 7.12 – fixed development consent levies – – 5,066 3,872 Other developer contributions – Calderwood – – 9 208 Total developer contributions – cash – – 9,131 5,507

Non-cash contributions S 7.12 – fixed development consent levies – – 49 – Planning agreements – – 1,433 4,867 Total developer contributions – non-cash – – 1,482 4,867 Total developer contributions 25 – – 10,613 10,374

Other contributions: Cash contributions Buildings – – 282 532 Community development and support 171 58 – – Community services and facilities 682 829 – – Parks, gardens and sportsfields 43 79 109 70 People and learning 18 36 – – Pollution minimisation 85 96 – – Roads and bridges 52 46 140 167 RMS contributions (regional roads, block grant) 1,403 1,379 – – Total other contributions – cash 2,454 2,523 531 769

Non-cash contributions Bushfire services – – 730 28 Dedications – subdivisions (other than by s7.11) – – 15,642 24,600 Wollongong City Gallery collection – – 313 – Total other contributions – non-cash – – 16,685 24,628

Total other contributions 2,454 2,523 17,216 25,397 Total contributions 2,454 2,523 27,829 35,771

TOTAL GRANTS AND CONTRIBUTIONS 31,364 39,639 40,637 42,022

page 20 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 3. Income from continuing operations (continued)

2018 2017 2018 2017 (f) Contributions (continued)

Accounting policy for contributions Control over grants and contributions is normally obtained upon their receipt (or acquittal) and is valued at the fair value of the granted or contributed asset at the date of transfer.

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 un-discharged at reporting date; the unused grant or contribution is disclosed above.

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 reporting date.

$ ’000 2018 2017

(g) Unspent grants and contributions

Certain grants and contributions are obtained by Council on condition that they be spent in a specified manner:

Operating grants Unexpended at the close of the previous reporting period 2,688 2,916

Add: operating grants recognised in the current period but not yet spent 1,237 1,181

Less: operating grants recognised in a previous reporting period now spent (1,288) (1,409)

Unexpended and held as restricted assets (operating grants) 2,637 2,688

Capital grants Unexpended at the close of the previous reporting period 361 1,739

Add: capital grants recognised in the current period but not yet spent 59 102

Less: capital grants recognised in a previous reporting period now spent (342) (1,480)

Unexpended and held as restricted assets (capital grants) 78 361

Contributions Unexpended at the close of the previous reporting period 16,583 15,590

Add: contributions recognised in the current period but not yet spent 3,799 2,382

Less: contributions recognised in a previous reporting period now spent (1,392) (1,389)

Unexpended and held as restricted assets (contributions) 18,990 16,583

page 21 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A19T Note 4. Expenses from continuing operations

$ ’000 Notes 2018 2017

(a)X9A11T Employee benefits and on-costs

Employee leave entitlements (ELE) 12,815 12,508 Salaries and wages 93,529 89,742 Superannuation 11,617 10,985 Change in workers compensation provision 723 155 Workers compensation – self insurance 1,425 2,098 Fringe benefit tax (FBT) 114 163 Payroll tax 47 44 Training costs (other than salaries and wages) 766 582 Protective clothing 298 290 Labour hire 486 706 Other 285 193 Total employee costs 122,105 117,466 Less: capitalised costs (14,262) (14,327) TOTAL EMPLOYEE COSTS EXPENSED 107,843 103,139

Accounting policy for employee benefits and on-costs Employee benefit expenses are recorded when the service has been provided by the employee. Retirement benefit obligations All employees of the Council are entitled to benefits on retirement, disability or death. Council contributes to various defined benefit plans and defined contribution plans on behalf of its employees. Superannuation plans Contributions to defined contribution plans are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. Council participates in a Defined Benefit Plan under the Local Government Superannuation Scheme, however, presently sufficient information to account for the plan as a defined benefit is not available and therefore Council accounts for its obligations to defined benefit plans on the same basis as its obligations to defined contribution plans, i.e. as an expense when it becomes payable – refer to Note 19 for more information.

(b)X9A12T Borrowing costs

(i) Interest bearing liability costs Interest on loans 1,263 1,447 Total interest bearing liability costs expensed 1,263 1,447

(ii) Other borrowing costs Discount adjustments relating to movements in provisions (other than ELE) – – – Remediation liabilities 14 1,989 1,894 Amortisation of discount on interest free (& favourable) loans to council 567 730 Total other borrowing costs 2,556 2,624 TOTAL BORROWING COSTS EXPENSED 3,819 4,071

Accounting policy for borrowing costs Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

page 22 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 4. Expenses from continuing operations (continued)

$ ’000 2018 2017

(c)X9A13T Materials and contracts

Raw materials and consumables 16,100 15,838 Contractor and consultancy costs 78,793 70,024 – Waste Contractor 16,618 16,276 – Road Works Contractor 5,789 2,187 – Building Contractor 1,906 2,654 – Parks Contractor 1,817 1,745 – Cleaning Contractor 957 1,082 – Security Contractor 1,145 981 – Software Maintenance and Support Contractor 1,825 1,802 – Internal audit 149 155 Auditors remuneration (1) 141 139 Legal expenses: – Planning and development 6 – – Other 959 512 Operating leases: – Minimum lease payments 335 100 Total materials and contracts 126,540 113,495 Less: capitalised costs (72,831) (66,463) TOTAL MATERIALS AND CONTRACTS 53,709 47,032 Operating leases Leases in which a significant portion of the risks and rewards of ownership are not transferred to Council as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

1. Auditor remuneration During the year the following fees were paid or payable for services provided by the auditor of Council, related practices and non-related audit firms.

Auditors of the Council – NSW Auditor-General: (i) Audit and other assurance services Audit and review of financial statements 133 79 Remuneration for audit and other assurance services 133 79 Total Auditor-General remuneration 133 79

Non NSW Auditor-General audit firms: (i) Audit and other assurance services Audit and review of financial statements – 57 Other audit and assurance services 8 3 Remuneration for audit and other assurance services 8 60 Total remuneration of non NSW Auditor-General audit firms 8 60

Total Auditor remuneration 141 139 page 23 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 4. Expenses from continuing operations (continued)

$ ’000 Notes 2018 2017

(d)X9A14T Depreciation, amortisation and impairment

Depreciation and amortisation Plant and equipment 4,301 4,424 Office equipment 695 750 Furniture and fittings 172 116 Infrastructure: – Bridges 1,918 1,939 – Buildings – non-specialised 5,377 5,173 – Buildings – specialised 5,681 5,558 – Footpaths 3,818 3,881 – Other open space/recreational assets 3,448 3,401 – Other structures 597 603 – Roads 20,224 21,780 – Stormwater drainage 10,165 9,879 – Swimming pools 475 463 Other assets: – Library books 1,073 1,063 – Other 1,509 1,421 Reinstatement, rehabilitation and restoration assets: – Tip assets 10 & 14 220 220 Intangible assets 12 394 600 Total depreciation and amortisation costs 60,067 61,271

TOTALX9A15T DEPRECIATION, AMORTISATION AND IMPAIRMENT COSTS EXPENSED 60,067 61,271

page 24 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 4. Expenses from continuing operations (continued)

(d) Depreciation, amortisation and impairment (continued)

Accounting policy for depreciation, amortisation and impairment expenses

Depreciation and amortisation Depreciation and amortisation are calculated using the straight line method to allocate their cost, net of their residual values, over their estimated useful lives. Useful lives are included in Note 10 for IPPE assets and Note 12 for intangible assets.

Impairment of non-financial assets Intangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Impairment losses for revalued assets are firstly offset against the amount in the revaluation surplus for the class of asset, with only the excess to be recognised in the Income Statement.

Impairment of financial assets Council assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’), and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

page 25 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 4. Expenses from continuing operations (continued)

$ ’000 Notes 2018 2017

(e)X9A16T Other expenses

Advertising 309 284 Bad and doubtful debts (74) 65 Bank charges 497 455 Contributions/levies to other levels of government – – – Emergency services levy (includes FRNSW, SES, and RFS levies) 336 377 – NSW fire brigade levy 2,806 2,701 – NSW rural fire service levy 494 481 – Waste and environment levy 15,297 15,453 Councillor expenses – mayoral fee 95 82 Councillor expenses – councillors’ fees 387 367 Councillors’ expenses (incl. mayor) – other (excluding fees above) 106 59 Donations, contributions and assistance to other organisations (Section 356) – – – City Centre management 5 361 – Illawarra Institute of Sport 35 35 – Illawarra Joint Project Organisation 53 51 – Illawarra Performing Arts Centre 690 673 – Illawarra Regional Information Service 88 91 – Illawarra Surf Life Saving 53 52 – Neighbourhood youth program 129 152 – Sponsorship fund 53 51 – Tourism 1,396 1,010 – Other 420 649 Elections 966 – Insurance 2,659 2,747 Light, electricity and heating 1,937 2,004 Membership fees 191 205 Postage 466 435 Provision for self insurance claims 140 150 Rental agreements 37 268 Royalty payments 336 334 Sewerage charges 225 290 Street lighting 3,116 3,023 Telephone and communications 754 547 Valuation fees 437 409 Volunteer reimbursements 280 299 Water rates 975 807 Other 4,539 930 Total other expenses 40,233 35,897 Less: capitalised costs (22) (303) TOTAL OTHER EXPENSES 40,211 35,594

Accounting policy for other expenses Other expenses are recorded on an accruals basis as the Council receives the goods or services.

page 26 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A10T Note 5. Gains or losses from the disposal of assets

$ ’000 Notes 2018 2017

Property (excl. investment property) 10 Proceeds from disposal – property 52 1,861 Less: carrying amount of property assets sold/written off (27) (1,005) Net gain/(loss) on disposal 25 856

Plant and equipment 10 Proceeds from disposal – plant and equipment 1,621 1,378 Less: carrying amount of plant and equipment assets sold/written off (1,243) (1,583) Net gain/(loss) on disposal 378 (205)

Infrastructure 10 Proceeds from disposal – infrastructure – – Less: carrying amount of infrastructure assets sold/written off (3,633) (4,611) Net gain/(loss) on disposal (3,633) (4,611)

Financial assets 6 Proceeds from disposal/redemptions/maturities – financial assets 67,557 69,530 Less: carrying amount of financial assets sold/redeemed/matured (67,557) (69,530) Net gain/(loss) on disposal – –

Non-current assets classified as ‘held for sale’ 9 Proceeds from disposal – non-current assets ‘held for sale’ 9,250 – Less: carrying amount of ‘held for sale’ assets sold/written off (6,381) – Net gain/(loss) on disposal 2,869 –

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS (361) (3,960)

Accounting policy for disposal of assets The gain or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer and the asset is derecognised.

page 27 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 6(a). Cash and cash equivalent assets

$ ’000 2018 2017

CashX9A0T and cash equivalents Cash on hand and at bank 1,390 887 Cash-equivalent assets – Deposits at call 4,796 7,626 – Managed funds 20,305 15,021 Total cash and cash equivalents 26,491 23,534

Accounting policy for cash and cash equivalents For Statement of Cash Flow presentation purposes, cash and cash equivalents includes cash on hand; deposits held at call with financial institutions; other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.

Note 6(b). Investments

2018 2018 2017 2017 $ ’000 Current Non-current Current Non-current

InvestmentsX9A1T a. ‘At fair value through the profit and loss’ – ‘Designated at fair value on initial recognition’ 43,162 – 43,428 – b. ‘Held-to-maturity’ 66,000 22,115 76,030 24,585 Total investments 109,162 22,115 119,458 24,585

Financial assets at fair value through the profit and loss Managed funds 2,115 – 1,928 – NCD’s, FRN’s (with maturities > 3 months) 39,374 – 35,868 – Mortgage backed securities 1,673 – 1,714 – Other long term financial assets – – 3,918 – Total 43,162 – 43,428 –

Held to maturity investments Long term deposits 66,000 22,115 76,030 24,585 Total 66,000 22,115 76,030 24,585

page 28 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 6(b). Investments (continued)

2018 2018 2017 2017 Accounting policy for investments Classification Council classifies its financial assets in the following categories: financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.

(a) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term. Assets in this category are held at fair value with changes in value taken through the profit or loss at each reporting period.

(b) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that Council’s management has the positive intention and ability to hold to maturity. Assets in this category are measured at amortised cost.

(c) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the reporting date which are classified as non-current assets. Loans and receivables are included in other receivables and receivables (Note 7) in the Statement of Financial Position. Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Receivables are generally due for settlement within 30 days. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

(d) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term. Assets in this category are held at fair value with changes in fair value taken to other comprehensive income.

Recognition and de-recognition Regular purchases and sales of financial assets are recognised on trade-date: the date on which Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the income statement. Investments are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Council has transferred substantially all the risks and rewards of ownership. When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in the income statement as gains and losses from investment securities.

Impairment of available for sale investments In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost, is considered an indicator that the asset is impaired.

page 29 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A20T Note 6(c). Restricted cash, cash equivalents and investments – details

2018 2018 2017 2017 $ ’000 Current Non-current Current Non-current

Total cash, cash equivalents and investments 135,653 22,115 142,992 24,585 attributable to: External restrictions (refer below) 52,077 22,115 51,203 24,585 Internal restrictions (refer below) 68,129 – 57,379 – Unrestricted 15,447 – 34,410 – 135,653 22,115 142,992 24,585

$ ’000 Notes 2018 2017

Details of restrictions

External restrictions – other Developer contributions – general (A) 18,961 16,367 RMS contributions (B) 29 216 Specific purpose unexpended grants (C) 2,715 3,049 Domestic waste management (D) 12,813 11,114 Stormwater management (D) 1,265 1,423 Unexpended loan (E) 7,019 7,424 Private contributions 6,064 4,905 Carbon price – 891 Special rates levy – Wollongong mall 164 228 Special rates levy – city centre (42) 28 Local infrastructure renewal scheme round 3 (F) 14,721 19,973 West Dapto home deposits issued 85 85 West Dapto home deposit assistance program 10,398 10,085 External restrictions – other 74,192 75,788 Total external restrictions 74,192 75,788

A Development contributions which are not yet expended for the provision of services and amenities in accordance with contributions plans. B RMS contributions which are not yet expended for the provision of services and amenities in accordance with those contributions. C Grants which are not yet expended for the purposes for which the grants were obtained. D Domestic Waste Management and other special rates/levies/charges are externally restricted assets and must be applied for the purposes for which they were raised. E State Government interest free loan to be administered on infrastructure as part of the West Dapto development. F State Government subsidised loans to be administered on infrastructure projects over the Local Government area.

page 30 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 6(c). Restricted cash, cash equivalents and investments – details (continued)

$ ’000 Notes 2018 2017

Internal restrictions Car parking strategy 1,061 1,124 Property – 3,912 Darcy Wentworth Park 171 170 Maccabe Park development 1,140 991 Sports Priority Program 642 362 Telecommunications Reserve – 193 Waste Disposal Facility 2,165 5,915 West Dapto Development 4,759 501 Strategic Projects 49,404 30,175 Property Investment Fund 8,276 8,266 Southern Phone natural areas 266 366 Future Programs – 5,239 Lake Illawarra Estuary Management Fund 245 165 Total internal restrictions 68,129 57,379 TOTAL RESTRICTIONS 142,321 133,167

A On 3rd April 2018 Council resolved to consolidate the following internal restrictions: - The Future programs restriction be absorbed into the Strategic Projects restriction. - The Telecommunications Revenue restriction be absorbed into the Sports Priority Program restriction. - The Property restrictions be absorbed into the West Dapto Development restriction.

page 31 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A2T Note 7. Receivables

2018 2017 $ ’000 Notes Current Non-current Current Non-current

Purpose Rates and annual charges 8,035 – 10,037 – Interest and extra charges 1,459 – 1,374 – User charges and fees 4,688 – 3,552 – Accrued revenues – Interest on investments 886 – 1,365 – – Other income accruals 2,004 – 2,370 – Government grants and subsidies 8,492 – 3,094 – Net GST receivable 1,701 – 2,090 – Total 27,265 – 23,882 –

Less: provision for impairment User charges and fees (229) – (351) – Total provision for impairment – receivables (229) – (351) –

TOTAL NET RECEIVABLES 27,036 – 23,531 –

There are no restrictions applicable to the above assets.

Movement in provision for impairment of receivables 2018 2017 Balance at the beginning of the year 351 602 – amounts already provided for and written off this year (33) (202) – previous impairment losses reversed (89) (49) Balance at the end of the year 229 351

Accounting policy for receivables

Recognition and measurement Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets as other receivables and receivables (Note 7) in the Statement of Financial Position. Receivables are recognised initially at fair value and subsequently assessed for impairment. Receivables are generally due for settlement within 30 days.

Cash flows relating to short-term receivables are not discounted due to the short settlement period.

Impairment Where impairment of receivables occurs the carrying amount of the asset is reduced and the amount is recognised in the profit or loss.

Collectability of receivables is reviewed on an on-going basis. A provision for impairment of receivables account is used to recognise debtors balances that are unlikely to be collected under Council's Debt Recovery and Hardship Assistance Policy. When a receivable for which an impairment allowance has been recognised becomes uncollectable, in a subsequent period it is written off against the impairment provision account. Subsequent recoveries of amounts previously written off result in the reversal of write-off transactions.

page 32 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A3T Note 8. Inventories and other assets

2018 2017 $ ’000 Notes Current Non-current Current Non-current

(a) Inventories

(i) Inventories at cost Real estate for resale (refer below) – 5,835 – 5,791 Stores and materials 306 – 298 – Total inventories at cost 306 5,835 298 5,791 TOTAL INVENTORIES 306 5,835 298 5,791

(ii) Other disclosures

(a) Details for real estate development Residential – 5,835 – 5,791 Total real estate for resale – 5,835 – 5,791 Represented by: Acquisition costs – 5,791 – 5,734 Development costs – 44 – 57 Total real estate for resale – 5,835 – 5,791 Movements: Real estate assets at beginning of the year – 5,791 – 5,734 – Purchases and other costs – 44 – 57 Total real estate for resale – 5,835 – 5,791

(b) Other assets

Prepayments 10,666 – 10,680 – TOTAL OTHER ASSETS 10,666 – 10,680 –

Externally restricted assets There are no restrictions applicable to the above assets.

Accounting policy Raw materials and stores, work in progress and finished goods Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Costs are assigned to individual items of inventory on basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory held for distribution Inventory held for distribution is held at cost, adjusted where applicable for any loss of service potential. Land held for resale/capitalisation of borrowing costs Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification and includes the cost of acquisition, and development and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in the cost of land held for resale, are those costs that would have been avoided if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods, are recognised as expenses.

page 33 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X9A4T Note 9. Non-current assets classified as held for sale (and disposal groups)

2018 2018 2017 2017 $ ’000 Current Non-current Current Non-current

(i) Non-current assets and disposal group assets

Non-current assets ‘held for sale’ Land – – 6,381 – Total non-current assets ‘held for sale’ – – 6,381 –

TOTAL NON-CURRENT ASSETS CLASSIFIED AS ‘HELD FOR SALE’ – – 6,381 –

Disposal groups $ ’000 2018 2017 2018 2017

(ii) Reconciliation of non-current assets ‘held for sale’

Opening balance – – 6,381 – Balance still unsold after 12 months: – – 6,381 – Plus new transfers in: – Assets ‘held for sale’ – – 6,381 Less: carrying value of assets/operations sold that were re-classified this reporting period – (6,381) – Closing balance of ‘held for sale’ non-current assets and operations – – – 6,381

Accounting policy for non-current assets classified as held for sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets; assets arising from employee benefits; financial assets; and investment property that are carried at fair value.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

page 34 Financial Statements 2018

X10A1T Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X10A0T Note 10(a). Infrastructure, property, plant and equipment

Asset class Asset movements during the reporting period as at 30/6/2017 as at 30/6/2018 Revaluation Revaluation Carrying Waste Accumulated Additions Additions Depreciation WIP Transfer to decrements increments Accumulated Gross Net value Remediation Gross Net depreciation renewals new assets expense transfers expense to equity to equity depreciation carrying carrying of disposals reassessment carrying carrying and (ARR) (ARR) and amount amount amount amount $ ’000 impairment impairment

Capital work in progress 89,997 – 89,997 36,005 22,601 – – (45,912) – (3,617) – – 99,074 – 99,074 Plant and equipment 41,808 20,284 21,524 6,370 – (1,243) (4,301) – – – – – 43,048 20,698 22,350 Office equipment 6,120 3,060 3,060 1,380 – – (695) – – – – – 7,500 3,755 3,745 Furniture and fittings 2,405 927 1,478 561 – – (172) – – – – – 2,404 537 1,867 Land: – Operational land 169,578 – 169,578 – 555 (27) – – – – – – 170,106 – 170,106 – Community land 338,804 760 338,044 – 907 – – – – – – – 339,711 760 338,951 – Land under roads (post 30/6/08) 30,127 – 30,127 – 38 – – – – – – – 30,165 – 30,165 Infrastructure: – Buildings – non-specialised 200,387 119,223 81,164 1,931 384 (316) (5,377) 1,990 – – – – 203,416 123,640 79,776 – Buildings – specialised 307,488 198,043 109,445 2,820 555 (194) (5,681) 10,195 – – – – 319,580 202,440 117,140 – Other structures 14,855 8,437 6,418 247 333 (23) (597) 231 – – – – 15,544 8,935 6,609 – Roads 1,384,622 841,525 543,097 11,301 5,923 (1,733) (20,224) 13,978 – – – – 1,401,805 849,463 552,342 – Bridges 143,643 49,733 93,910 377 236 (206) (1,918) 424 – – – 5,703 150,163 51,637 98,526 – Footpaths 267,224 143,073 124,151 4,336 1,999 (409) (3,818) 9,593 – – (11) – 279,783 143,942 135,841 – Stormwater drainage 921,851 399,687 522,164 6,604 3,958 (677) (10,165) 1,972 – – – – 931,671 407,815 523,856 – Swimming pools 29,738 22,458 7,280 36 – – (475) 444 – – – – 30,218 22,933 7,285 – Other open space/recreational assets 151,801 43,151 108,650 1,301 723 (75) (3,448) 4,304 – – – – 157,008 45,553 111,455 Other assets: – Heritage collections 12,369 – 12,369 – 473 – – – – – – – 12,842 – 12,842 – Library books 7,997 3,639 4,358 1,166 – – (1,073) – – – – – 8,158 3,707 4,451 – Other 43,796 11,789 32,007 178 744 – (1,509) 2,781 – – – – 47,249 13,048 34,201 Reinstatement, rehabilitation and restoration assets (refer Note 14): – Tip assets 19,738 8,931 10,807 – – (220) – (4,863) – – – 14,875 9,151 5,724 TOTAL INFRASTRUCTURE, PROPERTY, PLANT AND EQUIP. 4,184,348 1,874,720 2,309,628 74,613 39,429 (4,903) (59,673) – (4,863) (3,617) (11) 5,703 4,264,320 1,908,014 2,356,306

page 35 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 10(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipment

Infrastructure, property, plant and equipment are held at fair value. Independent valuations are performed at least every five years, however the carrying amount of assets is assessed at each reporting date to confirm that it is not materially different from current fair value.

Increases in the carrying amounts arising on revaluation are credited to the asset revaluation reserve. To the extent that the increase reverses a decrease previously recognising profit or loss relating to that asset class, the increase is first recognised as profit or loss. Decreases that reverse previous increases of assets in the same class are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the class; all other decreases are charged to the Income Statement.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Council and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their cost, net of their residual values, over their estimated useful lives as follows:

Plant and equipment Years Other equipment Years Office equipment 6 to 10 Playground equipment 10 to 15 Office furniture 10 to 20 Benches, seats etc. 10 to 20 Computer equipment 6 Vehicles 3 to 5 Buildings Heavy plant/road making equipment 8 to 10 Buildings: masonry 50 to 100 Other plant and equipment 2 to 15 Buildings: other 15 to 40

Stormwater assets Stormwater assets Drains 80 to 100 Drains 80 to 100 Culverts 80 to 100 Culverts 80 to 100 Flood control structures 75 Flood control structures 75

Transportation assets Other infrastructure assets Sealed roads: surface 20 to 40 Bulk earthworks Infinite Sealed roads: structure 80 Swimming pools 50 Unsealed roads 25 Other open space/recreational assets 10 to 30 Bridge: concrete 80 Other infrastructure 20 to 80 Bridge: other 30 to 40 Road pavements 80 Kerb, gutter and footpaths 80

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Income statement.

page 36 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 10(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipment (continued)

Land under roads Land under roads is land under roadways and road reserves including land under footpaths, nature strips and median strips.

Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051 Land Under Roads.

Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 Property, Plant and Equipment.

Crown reserves Crown Reserves under Council’s care and control are recognised as assets of the Council. While ownership of the reserves remains with the Crown, Council retains operational control of the reserves and is responsible for their maintenance and use in accordance with the specific purposes to which the reserves are dedicated. Improvements on Crown Reserves are also recorded as assets, while maintenance costs incurred by Council and revenues relating to the reserves are recognised within Council’s Income Statement.

Rural Fire Service assets Under section 119 of the Rural Fire Services Act 1997 (NSW) , “all fire fighting equipment purchased or constructed wholly or from money to the credit of the Fund is to be vested in the council of the area for or on behalf of which the fire fighting equipment has been purchased or constructed”.

Until such time as discussions on this matter have concluded and the legislation changed, Council will recognise rural fire service assets including land, buildings, plant and vehicles.

X11A13T Note 10(b). Infrastructure, property, plant and equipment – current year impairments

$ ’000 2018 2017

Impairment losses recognised direct to equity (ARR):

Hector Harvey Park – (760) Total impairment losses – (760)

IMPAIRMENT OF ASSETS – DIRECT TO EQUITY (ARR) – (760)

page 37 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A1T Note 11. Investment property

$ ’000 2018 2017

(a) Investment property at fair value

InvestmentX11A10T property on hand 4,780 4,775

Reconciliation of annual movement: Opening balance 4,775 4,775 – Net gain/(loss) from fair value adjustments 5 – CLOSING BALANCE – INVESTMENT PROPERTY 4,780 4,775

(b) Contractual obligations at reporting date

Refer to Note 18 for disclosures relating to any capital and service obligations that have been contracted.

(c) Leasing arrangements – Council as lessor

The investment property are leased to tenants under long-term operating leases with rentals payable monthly. Future minimum lease payments receivable under non-cancellable investment property operating leases not recognised in the financial statements are receivable as follows: Within 1 year 283 243 Later than 1 year but less than 5 years 300 363 Total minimum lease payments receivable 583 606 Leases for Council's investment property are generally of a 5 year term with an option for a further 5 years. Rent is paid monthly in advance with tenants paying 100% of outgoings. Rent reviews are a mix of C.P.I. and market reviews. There is a requirement on tenants to hold $20m public liability insurance.

(d) Investment property income and expenditure – summary

Rental income from investment property: – Minimum lease payments 347 339 Direct operating expenses on investment property: – that generated rental income (149) (112) Net revenue contribution from investment property 198 227 plus: Fair value movement for year 5 – Total income attributable to investment property 203 227

page 38 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 11. Investment property (continued)

Accounting policy for investment property Investment property, principally comprising freehold office buildings, is held for long-term rental yields and is not occupied by the Council. Changes in fair values are recorded in the income statement as part of other income. Properties that are under construction for future use as investment property are regarded as investment property. These are also carried at fair value unless the fair value cannot yet be reliably determined. Where that is the case, the property will be accounted for at cost until either the fair value becomes reliably determinable or construction is complete. The basis of valuation of investment property is fair value, being the amounts for which the properties could be exchanged between willing parties in arms length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. The 2018 revaluations were based on independent assessments made by: R F Rubin Certified Practising Valuer.

X11A2T Note 12. Intangible assets

$ ’000 2018 2017

Intangible assets are as follows:

Opening values: Gross book value 2,204 1,993 Accumulated amortisation (1,551) (950) Net book value – opening balance 653 1,043

Movements for the year – Purchases 129 211 – Amortisation charges (394) (600)

Closing values: Gross book value 2,333 2,204 Accumulated amortisation (1,945) (1,551)

TOTAL INTANGIBLE ASSETS – NET BOOK VALUE 1 388 653

1. The net book value of intangible assets represent: Software 388 653 388 653 Accounting policy for intangible assets IT development and software Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and services, direct payroll, and payroll related costs of employees’ time spent on the project. Amortisation is calculated on a straight line basis over periods generally ranging from three to five years. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility, and where Council has an intention and ability to use the asset. page 39 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A3T Note 13. Payables and borrowings

2018 2017 $ ’000 Current Non-current Current Non-current

Payables Goods and services – operating expenditure 7,668 – 7,071 – Goods and services – capital expenditure 9,758 – 15,740 – Accrued expenses: – Other expenditure accruals 6,762 – 12,709 – Security bonds, deposits and retentions 1,605 – 2,557 – Agency Funds 350 700 – – Other 611 – 583 – Total payables 26,754 700 38,660 –

Income received in advance Payments received in advance 3,256 – 2,957 – Total income received in advance 3,256 – 2,957 –

Borrowings Loans – secured 1 7,716 25,039 7,513 32,188 Total borrowings 7,716 25,039 7,513 32,188

TOTAL PAYABLES AND BORROWINGS 37,726 25,739 49,130 32,188

(a) Payables and borrowings relating to restricted assets

2018 2017 Current Non-current Current Non-current Externally restricted assets Loans 7,716 25,039 7,513 32,188 Total payables and borrowings relating to restricted assets 7,716 25,039 7,513 32,188 Total payables and borrowings relating to unrestricted assets 30,010 700 41,617 – TOTAL PAYABLES AND BORROWINGS 37,726 25,739 49,130 32,188

(b) Current payables and borrowings not anticipated to be settled within the next twelve months

The following payables and borrowings, even though classified as current, are not expected to be settled in the next 12 months.

Payables – security bonds, deposits and retentions 1,205 2,202 1,205 2,202

1. Loans are secured over the general rating income of Council. Disclosures on liability interest rate risk exposures, fair value disclosures and security can be found in Note 20. page 40 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 13. Payables and borrowings (continued)

$ ’000 2018 2017

(c) Changes in liabilities arising from financing activities

2017 Non-cash changes 2018 Opening Other Closing Class of Fair value balance Cash flows Acquisition non-cash balance changes borrowings as at 1/7/17 movements as at 30/6/18 Loans – secured 39,701 (7,513) – – 567 32,755 TOTAL 39,701 (7,513) – – 567 32,755

(d) Financing arrangements

(i) Unrestricted access was available at balance date to the following lines of credit: Bank overdraft facilities (1) 300 300 Credit cards/purchase cards 835 835 Total financing arrangements 1,135 1,135 Drawn facilities as at balance date: – Credit cards/purchase cards 98 6 Total drawn financing arrangements 98 6 Undrawn facilities as at balance date: – Bank overdraft facilities 300 300 – Credit cards/purchase cards 737 829 Total undrawn financing arrangements 1,037 1,129

1. The bank overdraft facility may be drawn at any time and may be terminated by the bank without notice.

Accounting policy for payables and borrowings Payables These amounts represent liabilities for goods and services provided to the Council prior to the end of financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or finance cost. Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

page 41 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A4T Note 14. Provisions

2018 2017 $ ’000 Current Non-current Current Non-current

Provisions Employee benefits: Annual leave 9,367 – 8,998 – Sick leave 144 – 133 – Long service leave 36,872 517 37,410 447 Other leave 1,037 – 940 – Sub-total – aggregate employee benefits 47,420 517 47,481 447

Asset remediation/restoration: Asset remediation/restoration (future works) 1,200 40,134 100 44,137 Sub-total – asset remediation/restoration 1,200 40,134 100 44,137

Other provisions: Self insurance – workers compensation 1,327 3,585 942 3,247 Self insurance – claims incurred 430 330 330 290 Sub-total – other provisions 1,757 3,915 1,272 3,537

TOTAL PROVISIONS 50,377 44,566 48,853 48,121

(a) Current provisions not anticipated to be settled within the next twelve months

The following provisions, even though classified as current, are not 2018 2017 expected to be settled in the next 12 months.

Provisions – employees benefits 37,710 38,146 37,710 38,146

page 42 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 14. Provisions (continued)

$ ’000

(b) Description of and movements in provisions

The movement in each class of provision (excluding those relating to employee benefits) is presented in the table below:

Self insurance Self insurance Other (enter Other (enter Asset 2018 – claims – workers Total details here...) details here...) remediation incurred compensation

At beginning of year – – 620 4,189 44,237 49,046 Changes to provision: Additional provisions 140 1,676 – 1,816 Amounts used (payments) – (1,970) – (1,970) Remeasurement effects – 1,017 (4,863) (3,846) Unwinding of discount – – 1,989 1,989 Expenditure incurred attributable to provisions – – (29) (29) Total other provisions at end of year – – 760 4,912 41,334 47,006

Other (enter Other (enter Self insurance Self insurance Asset 2017 details details – claims – workers Total remediation here...) here...) incurred compensation

At beginning of year 470 4,034 42,683 47,187 Changes to provision: Additional provisions 150 1,255 – 1,405 Amounts used (payments) – (2,329) – (2,329) Remeasurement effects – 1,229 (291) 938 Unwinding of discount – – 1,894 1,894 Expenditure incurred attributable to provisions – – (49) (49) Total other provisions at end of year – – 620 4,189 44,237 49,046

Nature and purpose of non-employee benefit provisions

Asset remediation Council has a legal/public obligation to make, restore, rehabilitate and reinstate the open Whytes Gully Waste Disposal Depot and closed Helensburgh Waste Depot Rehabilitation.

Self insurance – workers compensation To recognise liabilities for outstanding claims (uninsured losses) arising from Council’s decision to undertake self-insurance for certain risks faced.

Self insurance – claims incurred To recognise liabilities for both (i) claims expected to be incurred but not reported and (ii) claims reported and estimated as a result of Council being a self insurer up to certain levels of excess.

page 43 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 14. Provisions (continued)

Accounting policy for provisions Provisions are recognised when Council has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Employee benefits

Short-term obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be wholly settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations The liability for long service leave and annual leave that is not expected to be wholly settled within 12 months after the end of the period in which the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

The obligations are presented as current liabilities in the Statement of Financial Position if the Council does not have an unconditional right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlement is expected to occur.

page 44 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 14. Provisions (continued)

Asset Remediation/Restoration

Restoration Close down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Estimated close down and restoration costs are provided for in the accounting period when the obligation arising from the related disturbance occurs, whether this occurs during the development or during the operation phase, based on the net present value of estimated future costs. Provisions for close down and restoration costs do not include any additional obligations which are expected to arise from future disturbance. The costs are estimated on the basis of a closure plan. The cost estimates are calculated annually during the life of the operation to reflect known developments, eg updated cost estimates and revisions to the estimated lives of operations, and are subject to formal review at regular intervals.

Rehabilitation Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, provision is made for the estimated outstanding continuous rehabilitation work at each reporting date and the cost is charged to the Income Statement. Provision is made for the estimated present value of the costs of environmental clean up obligations outstanding at the reporting date. These costs are charged to the Income Statement. Movements in the environmental clean up provisions are presented as an operating cost, except for the unwinding of the discount which is shown as a borrowing cost. Remediation procedures generally commence soon after the time the damage, remediation process and estimated remediation costs become known, but may continue for many years depending on the nature of the disturbance and the remediation techniques. As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other locations. The expected timing of expenditure can also change, for example in response to changes in quarry reserves or production rates. As a result there could be significant adjustments to the provision for close down and restoration and environmental clean up, which would affect future financial results. Other movements in the provisions for close down and restoration costs, including those resulting from new disturbance, updated cost estimates, changes to the estimated lives of operations and revisions to discount rates are capitalised within property, plant and equipment. These costs are then depreciated over the lives of the assets to which they relate. Close down and restoration costs are a normal consequence of tip and quarry operations, and the majority of close down and restoration expenditure is incurred at the end of the life of the operations. Although the ultimate cost to be incurred is uncertain, Council estimates the respective costs based on feasibility and engineering studies using current restoration standards and techniques.

Self-insurance Council has decided to self-insure for various risks, including public liability and professional indemnity. A provision for self-insurance has been made to recognise outstanding claims. Council also maintains cash and investments to meet expected future claims; refer to Note 6(c).

page 45 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A5T Note 15. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

(a) Nature and purpose of reserves

Infrastructure, property, plant and equipment revaluation reserve The infrastructure, property, plant and equipment revaluation reserve is used to record increments / decrements of non-current asset values due to their revaluation.

Available for sale financial investments revaluation reserve The available for sale financial investments revaluation reserve is used to account for the fair value movements in all financial assets so classified that remain on hand at year end.

Upon sale, amounts in reserves are recognised in the Income Statement (in full) by way of transfer from the reserve.

(b)X11A11T Correction of errors relating to a previous reporting period

Nature of prior-period error As part of an on-going inspection program and data cleansing process it was found that IPPE that Council owned had not been recognised ($13.062M) and IPPE that had been recognised was disposed of in previous years ($17.711M). A similar exercise recognised a parcel of community land was no longer controlled by Council and this was also disposed.

In addition Real Estate for resale shown in Note 8a has been reclassified as non current asset, from current asset. The amount for 30 June 2017 is $5,791. These errors relate to an undetermined period making it impractical to restate prior period comparatives. Accordingly, Council has restated the opening balances of the earliest period presented being the 30 June 2017.

Adjustments to the comparative figures for the year ended 30 June 2017 Original Impact Restated Balance Increase/ Balance Statement of Financial Position 30 June 2017 (decrease) 30 June 2017 $'000s $'000s $'000s

Plant and Equipment 21,589 (65) 21,524 Community Land 348,428 (10,384) 338,044 Buildings -non-specialised 81,314 (150) 81,164 Buildings - specialised 109,545 (100) 109,445 Other structures 6,435 (17) 6,418 Roads 535,554 7,543 543,097 Bridges 94,098 (188) 93,910 Footpaths 124,723 (572) 124,151 Stormwater 522,839 (675) 522,164 Open Space / recreational assets 108,691 (41) 108,650 Total assets 2,535,798 (4,649) 2,531,149

Total liabilities 178,292 – 178,292

Reserves 974,735 (11,783) 962,952 Retained Earnings 1,382,771 7,134 1,389,905 Total equity 2,357,506 (4,649) 2,352,857 page 46 Financial Statements 2018

X11A12T Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A14T Note 16. Statement of cash flows – additional information

$ ’000 Notes 2018 2017

(a)X11A7T Reconciliation of cash assets

Total cash and cash equivalent assets 6a 26,491 23,534 Balance as per the Statement of Cash Flows 26,491 23,534

(b)X11A6T Reconciliation of net operating result to cash provided from operating activities

Net operating result from Income Statement 48,766 69,467 Adjust for non-cash items: Depreciation and amortisation 60,067 61,271 Net losses/(gains) on disposal of assets 361 3,960 Non-cash capital grants and contributions (18,167) (24,795) Losses/(gains) recognised on fair value re-measurements through the P&L: – Investments classified as ‘at fair value’ or ‘held for trading’ (130) (654) – investment property (5) – Amortisation of premiums, discounts and prior period fair valuations – Interest exp. on interest-free loans received by Council (previously fair valued) 567 730 Unwinding of discount rates on reinstatement provisions 1,989 1,894 Share of net (profits) or losses of associates/joint ventures (803) (525)

+/- Movement in operating assets and liabilities and other cash items: Decrease/(increase) in receivables (3,383) (2,000) Increase/(decrease) in provision for doubtful debts (122) (251) Decrease/(increase) in inventories (8) (5) Decrease/(increase) in other assets 14 (7,473) Increase/(decrease) in payables 597 (2,093) Increase/(decrease) in other accrued expenses payable (5,947) 6,460 Increase/(decrease) in other liabilities 425 (4,721) Increase/(decrease) in employee leave entitlements 9 401 Increase/(decrease) in other provisions (4,029) (35) Net cash provided from/(used in) operating activities from the Statement of Cash Flows 80,201 101,631

(c) Non-cash investing and financing activities

Developer contributions ‘in kind’ 1,482 – Other dedications 15,642 24,600 Contributed Art Works 313 – Contributed Bush Fire Assets 730 28 Contributed Transport Assets (RMS) – 167 Total non-cash investing and financing activities 18,167 24,795

page 47 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A0T Note 17. Interests in other entities

$ ’000

Council’s share of net income Council’s share of net assets 2018 2017 2018 2017 Joint ventures 803 525 2,638 1,835 Total 803 525 2,638 1,835

(a)X11A9T Joint arrangements

Joint ventures

Council has incorporated the following joint ventures into its consolidated financial statements.

(a) Net carrying amounts – Council’s share Nature of Measurement Name of entity relationship method 2018 2017 Civic West Joint venture Equity 1,584 988 Civic Risk Joint venture Equity 1,054 847 Total carrying amounts – material joint ventures 2,638 1,835

(b) Details Place of Name of entity Principal activity business Civic West Insurance Civic Risk Insurance

(c) Relevant interests and fair values Quoted Interest in Interest in Proportion of fair value outputs ownership voting power Name of entity 2018 2017 2018 2017 2018 2017 2018 2017 Civic West 1,584 988 4% 3% 4% 3% 10% 10% Civic Risk 1,054 847 12% 13% 12% 13% 6% 6%

page 48 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 17. Interests in other entities (continued)

$ ’000

(a) Joint arrangements (continued)

(d) Summarised financial information for joint ventures

Civic West Civic Risk Statement of financial position 2018 2017 2018 2017 Current assets Cash and cash equivalents 3,022 2,935 1,158 506 Other current assets 19,442 13,732 5,759 6,239 Non-current assets 41,740 47,434 5,989 5,889 Current liabilities Current financial liabilities (excluding trade and other payables and provisions) 6,111 5,008 2,690 2,890 Other current liabilities 720 688 299 423 Non-current liabilities Non-current financial liabilities (excluding trade and other payables and provisions) 15,612 20,429 1,448 2,830 Net assets 41,761 37,976 8,469 6,490

Reconciliation of the carrying amount Opening net assets (1 July) 37,976 32,195 6,490 7,287 Profit/(loss) for the period 5,913 7,465 1,978 (796) Other adjustments to equity (2,128) (1,684) – – Closing net assets 41,761 37,976 8,469 6,490

Council’s share of net assets (%) 3.8% 2.6% 12.4% 13.1% Council’s share of net assets ($) 1,584 988 1,054 847

Statement of comprehensive income Income 6,076 7,066 9,425 8,302 Interest income 3,261 3,757 439 584 Interest expense (17) (17) – – Other expenses (3,408) (3,341) (7,886) (9,682) Profit/(loss) from continuing operations 5,912 7,465 1,978 (796) Rounding Adjustment (2) – – – Total comprehensive income 5,913 7,465 1,978 (796)

Share of income – Council (%) 10.1% 8.2% 10.5% 10.9% Profit/(loss) – Council ($) 596 612 207 (87) Total comprehensive income – Council ($) 596 612 207 (87)

Summarised Statement of cash flows Cash flows from operating activities 113 3,219 903 (1,115) Cash flows from investing activities 1,510 (2,396) (250) (1) Cash flows from financing activities (1,537) (847) – – Net increase (decrease) in cash and cash equivalents 86 (24) 653 (1,116)

page 49 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 17. Interests in other entities (continued)

$ ’000

(a) Joint arrangements (continued)

Accounting policy for joint arrangements The Council has determined that it has only joint ventures.

Joint ventures Interests in joint ventures are accounted for using the equity method in accordance with AASB128 Investments in Associates and Joint Ventures . Under this method, the investment is initially recognised as a cost and the carrying amount is increased or decreased to recognise the Council’s share of the profit or loss and other comprehensive income of the joint venture after the date of acquisition. If the Council’s share of losses of a joint venture equals or exceeds its interest in the joint venture, the Council discontinues recognising its share of further losses. The Council’s share in the joint venture’s gains or losses arising from transactions between itself and its joint venture are eliminated. Adjustments are made to the joint venture’s accounting policies where they are different from those of the Council for the purpose of the consolidated financial statements.

(b) Subsidiaries, joint arrangements and associates not recognised

The following subsidiaries, joint arrangements and associates have not been recognised in this financial report.

2018 2018 Name of entity/operation Principal activity/type of entity Net profit Net assets

1. Illawarra Shoalhaven Joint Inter-Governmental Collaboration (242) 774 Organisation Joint Venture

Reasons for non-recognition Council has assessed this operation as not material for recognition in these statements.

2. Illawarra District Noxious Weed Administer Noxious Weeds Act (19) 793 Authority Joint Venture

Reasons for non-recognition Council has assessed this operation as not material for recognition in these statements.

3. Destination Wollongong Tourism Development & Promotion 8 57 Associate

Reasons for non-recognition Council has assessed this operation as not material for recognition in these statements.

4. Illawarra Performing Arts Centre Theatre & Town Hall Management 5 309 Associate

Reasons for non-recognition Council has assessed this operation as not material for recognition in these statements.

page 50 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A15T Note 18. Commitments for expenditure

$ ’000 2018 2017

(a) Capital commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Property, plant and equipment Buildings 2,957 112 Infrastructure 3,399 21,228 Total commitments 6,356 21,340

These expenditures are payable as follows: Within the next year 6,356 21,340 Total payable 6,356 21,340

Sources for funding of capital commitments: Unrestricted general funds 4,881 8,874 Future grants and contributions 1,415 165 Sect 64 and 94 funds/reserves – 100 Unexpended grants 60 2,389 Externally restricted reserves – 6,312 Unexpended loans – 3,500 Total sources of funding 6,356 21,340

Details of capital commitments Buildings include Stanwell Park Café, Austinmer Boatshed, Wombarra Pre School, Western Suburbs Pool Office & Amenities, Helensburgh RLFC. Infrastructure includes Fowlers Road to Fairwater Drive, Coalcliff Beach Works, Yallah Bay Road Bridge, O'Brien's Road Pedestrian Bridge, Harry Graham Drive stabilise, King George V Oval lighting, The Parkway Balgownie Retaining Wall, Belmore Basin Embankment, Wombarra Rock Pool Retaining wall.

(b) Operating lease commitments (non-cancellable) a. Commitments under non-cancellable operating leases at the reporting date, but not recognised as liabilities are payable:

Within the next year 335 100 Later than one year and not later than 5 years 661 400 Later than 5 years 612 699 Total non-cancellable operating lease commitments 1,608 1,199 b. Non-cancellable operating leases include the following assets: Lease of Land for Dapto Ribbonwood Centre and lease of Warrawong Library.

Conditions relating to operating leases: – All operating lease agreements are secured only against the leased asset. – No lease agreements impose any financial restrictions on Council regarding future debt etc.

page 51 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A18T Note 19. Contingencies and other liabilities/assets not recognised

The following assets and liabilities do not qualify for 4. Defined Benefit Superannuation recognition in the Balance Sheet, but their knowledge Contribution Plans & disclosure is considered relevant to the users of Council's Financial Report. Council participates in an employer sponsored Defined Benefit Superannuation Scheme, and makes LIABILITIES NOT RECOGNISED: contributions as determined by the Superannuation Scheme's Trustees. 1. Bank Guarantees Member Councils bear responsibility of ensuring Council has provided Bank Guarantees totalling there are sufficient funds available to pay out the $414,123 as security over damages for work that may required benefits as they fall due. impact a third party. The Schemes most recent full actuarial review Council is also Guarantor on a mortgage for a indicated that the Net Assets of the Scheme were third party of $180,000. not sufficient to meet the accrued benefits of the Schemes Defined Benefit member category with 2. Third Party Claims member Councils required to make a higher contribution during the reporting period. This The Council is involved from time to time in various amounted to $1.868M for Council in 2017/18. claims incidental to the ordinary course of business Council's LTFM includes forecast payments of including claims for damages relating to its services. $1.778M in 2018/19 and $1.868M annually up to and including 2020/21. Council believes that it is appropriately covered for all claims through its Insurance Coverage and The Local Government Superannuation Scheme does not expect any material liabilities to eventuate. however is unable to provide Council with an accurate estimate of its share of the net deficit and 3. Development Contributions accordingly Council has not recorded any net liability from its Defined Benefit Scheme obligations in Council levies Development Contributions upon accordance with AASB 119. various development across the Council area through the required Contributions Plans. As part of these Future contributions made to the defined benefit Plans, Council has received funds for which it will be scheme to rectify the net deficit position will be required to expend the monies in accordance with recognised as an expense when they become those Plans. payable - similar to the accounting for Defined Contributions Plans. As well, these Plans indicate proposed future expenditure to be undertaken by Council, which will 5. Greenhouse Park be funded by making levies and receipting funds in future years or where a shortfall exists by the use of Council owns and manages a former landfill site at Council's General Funds. Greenhouse Park. The landfill was constructed prior to contemporary environmental regulations and used as These future expenses do not yet qualify as liabilities both a putrescible and builders waste landfill. Following as of the Reporting Date, but represent Councils the closure of the site as a landfill, remediation of the intention to spend funds in the manner and timing site has been progressively occurring to transform the set out in those plans. site into a natural area.

page 52 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 19. Contingencies and other liabilities/assets not recognised (continued)

LIABILITIES NOT RECOGNISED: 7. Cleveland Road Stockpile (continued)

5. Greenhouse Park (continued) the order of $1.3M, while reuse costs if the material is suitable, will be costed to the 'Fowlers to Fairwater' Council is also working with the EPA and Project. specialised consultants to manage the landfill waste which was placed on the site. Total 8. Native Title remediation costs at this stage are unknown and In January 2018, the National Native Title Tribunal will be dependent on the remediation strategies accepted registration of a native title claim that implemented. includes the Wollongong LGA. The claim will take some time to determine. Private freehold land, and 6. Helensburgh Landfill Site certain other land owned by Council is not affected. Council manages a former landfill site at Council will continue to pursue updates on the Helensburgh located off Halls Road/Nixon Place. progress of the claim. The landfill was commenced prior to contemporary environmental regulations and was used at various times for both putrescible and builders construction ASSETS NOT RECOGNISED: waste. Following the closure of the site as a landfill, Council is required to remediate the site in 1. Various Insurances - HIH & CIC accordance with EPA requirements and licence conditions. Council is currently working with EPA Council placed or was a party to various liability, and specialised consultants to prepare the final property and workers compensation insurance policies design documentation for this project. Final with HIH & CIC. During 2000/2001 HIH & CIC went remediation costs at this stage are in the order of into liquidation. Both HIH & CIC remain responsible $8.7M to $11.8M depending on the source of for payment of their portion of each Council claim capping materials and the final design solution incurred which exceeded Council's insurance excess. adopted. Council's current provision is approximately Council has recovered $1,123,732 to date. The total of $4.3M. If a shortfall eventuates this will impact the Council's unrecovered claims is currently $1,173,770. income statement. At this time, based on the liquidator's estimated final dividend rates, Council expects to recover a further 7. Cleveland Road Stockpile $75,000 from the remaining assets of HIH & CIC.

Council operated a stockpile adjacent to Cleveland Road to stockpile material for the road projects specified within the West Dapto Access Strategy. 2. Land Under Roads Recently a large amount of this stockpile has been incorporated within the Fowlers to Fairwater Stage As permitted under AASB 1051, Council has elected 1 works. One of the stockpiles during testing was not to bring to account Land Under Roads that it found to contain small amounts of Asbestos owned or controlled up to & including 30/6/08. Containing Material and the known material has been subsequently removed from site to a licenced facility. The remainder of the stockpile is currently being tested to determine it’s classification for reuse or disposal. If the remaining material is found to be contaminated, the cost to dispose is in

page 53 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A16T Note 20. Financial risk management

$ ’000

Risk management

Council’s activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interest rate risk. The Council’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council. Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk. Financial risk management is carried out by Council’s finance section under policies approved by the Council. The fair value of Council’s financial assets and financial liabilities approximates their carrying amount.

Council’s objective is to maximise its return on cash and investments whilst maintaining an adequate level of liquidity and preserving capital. Council’s finance area manages the cash and Investments portfolio with the assistance of independent advisors. Council has an investment policy which complies with the Local Government Act 1993 and Ministerial Investment Order 625. This policy is regularly reviewed by Council and its staff and a monthly Investment report is provided to Council setting out the make-up and performance of the portfolio as required by Local Government regulations. The risks associated with the investments held are: – Price risk – the risk that the capital value of Investments may fluctuate due to changes in market prices, whether these changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market. – Interest rate risk – the risk that movements in interest rates could affect returns and income. – Credit risk – the risk that the investment counterparty will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council – be it of a capital or income nature. Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees.

(a) Market risk – price risk and interest rate risk The following represents a summary of the sensitivity of Council’s Income Statement and accumulated surplus (for the reporting period) due to a change in either the price of a financial asset or the interest rates applicable. It is assumed that the change in interest rates would have been constant throughout the reporting period.

Increase of values/rates Decrease of values/rates 2018 Profit Equity Profit Equity Possible impact of a 10% movement in market values 4,316 4,316 (4,316) (4,316) Possible impact of a 1% movement in interest rates 1,146 1,146 (1,146) (1,146)

2017 Possible impact of a 10% movement in market values 4,343 4,343 (4,343) (4,343) Possible impact of a 1% movement in interest rates 1,241 1,241 (1,241) (1,241)

page 54 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 20. Financial risk management (continued)

$ ’000

(b) Credit risk

Council’s major receivables comprise (i) rates and annual charges and (ii) user charges and fees.

The major risk associated with these receivables is credit risk – the risk that debts due and payable to Council may not be repaid in full.

Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures. It also encourages ratepayers to pay their rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to the debts – that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates and annual charges at higher than market rates which further encourages the payment of debt.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

A profile of Council’s receivables credit risk at balance date follows:

2018 2018 2017 2017 Rates and Rates and annual Other annual Other charges receivables charges receivables (i) Ageing of receivables – % Current (not yet overdue) 0% 87% 0% 83% Overdue 100% 13% 100% 17% 100% 100% 100% 100%

(ii) Ageing of receivables – value 2018 2017 Rates and annual charges < 1 year overdue 5,331 7,410 1 – 2 years overdue 1,367 1,381 2 – 5 years overdue 851 803 > 5 years overdue 1,945 1,817 9,494 11,411 Other receivables Current 14,052 10,403 0 – 30 days overdue 652 589 31 – 60 days overdue 328 61 61 – 90 days overdue 82 112 > 91 days overdue 956 1,306 16,070 12,471

page 55 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 20. Financial risk management (continued)

$ ’000

(c) Liquidity risk

Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended and overdraft facilities utilised as required.

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect funding costs and debt servicing requirements. Council manages this risk through the diversification of borrowing types, maturities and interest rate structures.

The contractual undiscounted cash outflows (ie. principal and interest) of Council’s payables and borrowings are set out in the maturity table below:

$ ’000 Weighted Subject Total Actual average to no payable in: cash carrying interest rate maturity ≤ 1 Year 1 – 5 Years > 5 Years outflows values

2018 Trade/other payables 0.00% 1,605 25,194 700 – 27,499 27,454 Loans and advances 1.50% – 8,814 27,448 3,313 39,575 32,755 Total financial liabilities 1,605 34,008 28,148 3,313 67,074 60,209

2017 Trade/other payables 0.00% 2,557 36,103 – – 38,660 38,660 Loans and advances 1.50% – 8,814 26,556 7,220 42,590 39,701 Total financial liabilities 2,557 44,917 26,556 7,220 81,250 78,361

page 56 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A17T Note 21. Material budget variations

Council’s original financial budget for 17/18 was adopted by the Council on 26 June 2017 and is not required to be audited.

While the Income Statement included in this General Purpose Financial Report must disclose the original budget adopted by Council, the Local Government Act 1993 requires Council to review its financial budget on a quarterly basis, so that it is able to manage the various variations between actuals versus budget that invariably occur throughout the year.

This note sets out the details of material variations between Council’s original budget and its actual results for the year as per the Income Statement – even though such variations may have been adjusted for during each quarterly budget review.

Note that for variations* of budget to actual : Material variations represent those variances that amount to 10% or more of the original budgeted figure. F = Favourable budget variation, U = Unfavourable budget variation

2018 2018 2018 $ ’000 Budget Actual ------Variance* ------

REVENUES Rates and annual charges 190,940 191,449 509 0% F

User charges and fees 35,691 34,805 (886) (2%) U

Interest and investment revenue 4,321 5,162 841 19% F Interest & investment income is greater due to increased cash holdings for a significant part of the year due to timing of delivery of projects, favourable operating performance and positive fair valuation of a number of investment assets.

Other revenues 9,705 10,551 846 9% F

Operating grants and contributions 20,838 31,364 10,526 51% F Operating grants are affected by the early receipt of two instalments of the Financial Assistance Grant ($9.5M) and additional grants received during the year.

Capital grants and contributions 44,858 40,637 (4,221) (9%) U

Fair value increment on investment property – 5 5 0% F No movement was anticipated on investment property valuation for 2017/18 budget purposes.

Joint ventures and associates - net profits – 803 803 0% F Council's budget does not currently provide for potential movements in joint ventures as these valuations are impacted by a range of external variables that cannot be easily determined.

page 57 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 21. Material budget variations (continued)

2018 2018 2018 $ ’000 Budget Actual ------Variance* ------

EXPENSES Employee benefits and on-costs 110,205 107,843 2,362 2% F

Borrowing costs 3,849 3,819 30 1% F

Materials and contracts 52,052 53,709 (1,657) (3%) U

Depreciation and amortisation 64,340 60,067 4,273 7% F

Other expenses 39,480 40,211 (731) (2%) U

Net losses from disposal of assets – 361 (361) 0% U

Budget variations relating to Council’s Cash Flow Statement include:

Cash flows from operating activities 100,807 80,201 (20,606) (20.4%) U The lower level of cash flow compared to original budget is largely attributed to a change in timing of land release in the West Dapto subdivision area which has resulted in a lower level of developer contributions ($25.7M) that has been partially offset by the early payment of the first two quarter of the 2018-19 Financial Assistance Grant ($9.5M) in June 2018.

Cash flows from investing activities (89,993) (69,731) 20,262 (22.5%) F This is primarily due to a net sale (decrease) of investment securities necessitated by lower than anticipated cash from operating activities.

Cash flows from financing activities (7,486) (7,513) (27) 0.4% U

page 58 Financial Statements 2018

X11A8T Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X11A20T Note 22. Fair value measurement

$ ’000

The Council measures the following asset and liability classes at fair value on a recurring basis: – Infrastructure, property, plant and equipment – Investment property – Financial assets and liabilities The fair value of assets and liabilities must be estimated in accordance with various accounting standards for either recognition and measurement requirements or for disclosure purposes. AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a ‘level’ in the fair value hierarchy as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values: Fair value measurement hierarchy 2018 Level 1 Level 2 Level 3 Total Date Quoted Significant Significant Recurring fair value measurements of latest prices in observable unobservable valuation active mkts inputs inputs Financial assets Investments – ‘Designated at fair value on initial recognition’ 30/06/18 – – 43,162 43,162 Total financial assets – – 43,162 43,162 Investment property Commercial building 30/06/18 – – 4,780 4,780 Total investment property – – 4,780 4,780 Infrastructure, property, plant and equipment Roads 30/06/17 – – 548,394 548,394 Bridges 30/06/17 – – 98,172 98,172 Footpaths 30/06/17 – – 130,662 130,662 Stormwater 30/06/17 – – 523,775 523,775 Plant and equipment 30/06/18 – – 22,350 22,350 Office equipment 30/06/18 – – 3,745 3,745 Furniture and fittings 30/06/18 – – 1,867 1,867 Operational land 30/06/14 – – 170,106 170,106 Community land 30/06/16 – – 338,951 338,951 Land under roads 30/06/14 – – 30,165 30,165 Buildings 30/06/14 – – 188,583 188,583 Other structures 30/06/16 – – 5,967 5,967 Swimming pools 30/06/16 – – 6,805 6,805 Library books 30/06/18 – – 4,451 4,451 Other open space/recreational assets 30/06/16 – – 109,986 109,986 Tip asset 30/06/18 – – 5,724 5,724 Works in progress 30/06/18 – – 119,560 119,560 Artworks 30/06/17 – – 12,842 12,842 Other 30/06/16 – – 34,201 34,201 Total infrastructure, property, plant and equipment – – 2,356,306 2,356,306

page 59 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

$ ’000

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values: (continued) Fair value measurement hierarchy 2017 Level 1 Level 2 Level 3 Total Date Quoted Significant Significant Recurring fair value measurements of latest prices in observable unobservable valuation active mkts inputs inputs Financial assets Investments – ‘Designated at fair value on initial recognition’ 30/06/17 – – 43,428 43,428 Total financial assets – – 43,428 43,428

Investment property Commercial building 30/06/17 – – 4,775 4,775 Total investment property – – 4,775 4,775

Infrastructure, property, plant and equipment Roads 30/06/17 – – 543,097 543,097 Bridges 30/06/17 – – 93,910 93,910 Footpaths 30/06/17 – – 124,151 124,151 Stormwater 30/06/17 – – 522,164 522,164 Plant and equipment 30/06/17 – – 21,524 21,524 Office equipment 30/06/17 – – 3,060 3,060 Furniture and fittings 30/06/17 – – 1,478 1,478 Operational land 30/06/14 – – 169,578 169,578 Community land 30/06/16 – – 338,044 338,044 Land under roads 30/06/14 – – 30,127 30,127 Buildings 30/06/14 – – 190,609 190,609 Other structures 30/06/16 – – 6,418 6,418 Swimming pools 30/06/16 – – 7,280 7,280 Library books 30/06/16 – – 4,358 4,358 Other open space/recreational assets 30/06/16 – – 108,650 108,650 Tip asset 30/06/17 – – 10,807 10,807 Works in progress 30/06/17 – – 89,997 89,997 Artworks 30/06/17 – – 12,369 12,369 Other 30/06/16 – – 32,007 32,007 Total infrastructure, property, plant and equipment – – 2,309,628 2,309,628

Non-recurring fair value measurements

Non-current assets classified as ‘held for sale’ Flinders Street North Wollongong 30/06/14 – – 6,381 6,381 Total NCA’s classified as ‘held for sale’ – – 6,381 6,381

page 60

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values

Where Council is unable to derive Fair Valuations using quoted market prices of identical assets (i.e. Level 1 inputs), Council instead utilises a spread of both observable inputs (Level 2 inputs) and unobservable inputs (Level 3 inputs).

Level 2 inputs include;

• quoted prices for similar assets in active markets, • quoted prices for identical or similar assets in markets that are not active, • inputs other than quoted prices that are observable (e.g. interest rates, credit spreads etc.) and • market corroborated inputs.

Level 3 inputs are unobservable inputs. If an observable input (Level 2) requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement is categorised within Level 3 of the fair value hierarchy. Council uses unobservable inputs to the extent relevant observable inputs are not available. But the objective remains the same; i.e. an exit price from the perspective of market participants. Therefore, unobservable inputs reflect the assumptions market participants would use when pricing, including assumptions about risk. Assumptions about risk include risk inherent in a particular valuation technique and risk inherent in inputs to the technique. Such an adjustment may be necessary if there is a significant measurement uncertainty.

Unobservable inputs have been developed using the best information available, which includes Council’s own data. In some cases, Council adjusts its own data if reasonable available information indicates other market participants would use different data or if there is an entity specific synergy (i.e. not available to other market participants).

Level 3 inputs include;

• Unit Rates, • Unit Price, • Asset Condition, • Remaining Useful Life, • Future Demands, • Borrowing Rates

page 61

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:

Financial Assets

Valuation Technique – A portion of Council’s investment portfolio is measured at fair value (i.e. market approach).

Fair Value Hierarchy – the fair value has been derived from the current price in an active market for similar assets. Emerald Reverse Mortgage investment securities form part of this portion of Council’s portfolio. The market for Australian mortgage backed securities, regardless of the robustness of the structure, is highly illiquid as a direct consequence of the global financial crisis. This has caused difficulties in valuing the security as there is limited “price discovery” in the market. As such the level of valuation input for Council’s fair valued investments was considered a Level 3.

Investment Property

Valuation Technique – Council’s Investment Property is measured using sales direct comparison based on a market selling approach (i.e. market approach).

Fair Value Hierarchy - the fair value has been derived from the sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant inputs into this valuation approach are rental yields and price per square metre.

The level of evidence to support the critical assumptions of Council’s investment property valuation was considered to be significant due to high levels of variability in the market for rental yields and future demands. As such the level of valuation input for these properties was considered level 3.

Infrastructure, Property, Plant & Equipment

Infrastructure – Council’s Infrastructure incorporates;

• Roads - Surface and bases, Car Parks, Kerb and Guttering and Traffic Facilities (speed humps, bollards and signs), • Bridges – Road, Pedestrian and Jetties, • Footpaths including shared pathways and • Stormwater Drainage

page 62

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Valuation Technique – Infrastructure assets are recognised using the cost method, which equates to the current replacement cost of a modern equivalent asset. The cost to replace the asset is to equal the amount that a market participant buyer of that asset would pay to acquire it.

Fair Value Hierarchy - the general valuation approach to determine the fair value of Council’s infrastructure inventory is to determine a unit rate based on square metres or an appropriate unit corroborated by market evidence (Level 2 input). A process is then undertaken to compare these rates with internal unit rates derived by Council as a result of specific projects that have been undertaken. Further to this other input such as asset condition and useful life require a significant level of professional judgement and can impact significantly on the fair value. As such the level of valuation input for these assets was considered level 3.

Property Plant & Equipment, Office Equipment & Furniture & Fittings incorporate:

• Property, Plant & Equipment – Trucks, Tractors, Graders, Rollers, Buses, Vans, Passenger Vehicles, Mobile Equipment (i.e. generators, hand mowers, tools), Fluid storage units (i.e. septic tanks, water tanks), • Office Equipment – Electronic Whiteboards, Printing Equipment, Safes and I.T. equipment such as computers, printers and scanners, • Furniture & Fittings – Chairs, Tables, Filing Cabinets, Bookshelves, Compactuses,

Valuation Technique – These assets are recognised at depreciated historical cost as an acceptable substitute for fair value because any difference between fair value and depreciated historical cost is unlikely to be material.

Fair Value Hierarchy – The key unobservable unit to the valuation of this category is asset condition and useful life. The condition of assets is reviewed on an annual basis and an assessment of remaining life undertaken based on these results.

Operational Land

Valuation Technique – Council’s Operational Land is measured using a comparative market selling approach (i.e. market approach).

Fair Value Hierarchy – the fair value has been derived from the sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant inputs into this valuation approach is price per square metre. The level of evidence to support the critical assumptions of Council’s operational land valuation was considered to be significant due to high levels of variability in the market for similar properties and future demands. As such the level of valuation input for these properties was considered level 3.

page 63

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Community Land

Valuation Technique – Council’s Community Land is measured using comparative Land Values (LV) provided by the Valuer General (VG) or an average unit rate based on a comparable LV for similar properties (i.e. market approach). Fair Value Hierarchy – the fair value has been derived from the LV’s provided by the Valuer General or an average unit rate based on the LV for similar properties where the Valuer General did not provide a LV. The most significant input into this valuation approach is price per square metre. Valuations provided by the Valuer General are not in the public domain and the application of an average rate requires a level of professional judgement. As such the level of valuation input for these properties was considered level 3.

Land Under Roads

Valuation Technique – Land is generally valued using comparative Land Values (LV) provided by the Valuer General (VG) or an average unit rate based on a comparable LV for similar properties (i.e. market approach).

Fair Value Hierarchy – The existing use fair value of land under roads is best expressed as undeveloped or en globo land (pre-subdivision). However, as sufficient sales evidence of en globo land with similar features to the land being valued is generally not available, it is appropriate to use a proxy to estimate the en globo value. Community land value is used as a reasonable proxy to value land under roads, as such land generally has no feasible alternative use, and it is undeveloped and is publicly accessible. As such the level of valuation input for these properties was considered level 3.

Buildings – Non-Specialised and Specialised

Valuation Technique – Buildings are recognised using the cost method, which equates to the current replacement cost of a modern equivalent asset. The cost to replace the asset is equal to the amount that a market participant buyer of that asset would pay to acquire it.

Fair Value Hierarchy – Specialised and Non-Specialised buildings are generally assessed at level 3 of the fair value hierarchy due to lack of market evidence. Key inputs are unit rates and remaining useful life. The exception is non-specialised residential properties which have been valued using sale prices of comparable properties (level 2). The most significant input into this valuation approach is price per square metre. The level of evidence to support the critical assumptions of Council’s residential property valuation was considered to be significant due to high levels of variability in the market for rental yields and future demands. As such the level of valuation input for all buildings was considered level 3.

page 64

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Intangible Assets

Valuation Technique – These assets are recognised at depreciated historical cost as an acceptable substitute for fair value because any difference between fair value and depreciated historical cost is unlikely to be material.

Fair Value Hierarchy – The key unobservable unit to the valuation of this category is asset condition and useful life. The condition of assets is reviewed on an annual basis and an assessment of remaining life undertaken based on these results.

Other Structures

Other Structures incorporates Bus Shelters, Shade Structures, Picnic Shelters and BBQ Shelters.

Valuation Technique – Other Structures are recognised at depreciated historical cost as an acceptable substitute for fair value because any difference between fair value and depreciated historical cost is unlikely to be material.

Fair Value Hierarchy – The key unobservable unit to the valuation of this category is asset condition and useful life. The condition of assets is reviewed on an annual basis and an assessment of remaining life undertaken based on these results.

Other Open Space / Recreational Assets

Other Open Space/Recreational Assets incorporate Off-road Footpaths, Park Assets including Playgrounds, Skateboard Facilities, Tennis Courts, Furniture and Landscaping and Power Poles.

Valuation Technique – Other Open Space/Recreational Assets are recognised using the cost method (e.g. Off-Road Footpaths).

Fair Value Hierarchy – while some elements of the cost method can be supported by market evidence (Level 2) other factors require professional judgement such as asset condition and useful life. As these inputs can have a significant impact on the fair value the valuation input all Other Open Space / Recreational Assets were considered level 3.

page 65

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Swimming Pools – Structures

Valuation Technique – Swimming Pools and Rock Pools are valued using the cost approach, which equates to the current replacement cost of a modern equivalent asset. The cost to replace the asset is to equal the amount that a market participant buyer of that asset would pay to acquire it. External Valuer Ninnes Fong undertook the original valuation in 2009. An internal valuation was undertaken during the 2016 financial year.

Fair Value Hierarchy - the general valuation approach to determine the fair value of Council’s swimming pool inventory is to determine a unit rate based on square metres corroborated by market evidence (Level 2 input). A process is then undertaken to compare these rates with internal unit rates derived by Council as a result of specific work that has been undertaken. Further to this other input such as asset condition and useful life require a significant level of professional judgement and can impact significantly on the fair value. As such the level of valuation input for these properties was considered level 3.

Artworks

Valuation Technique – Art Works are valued using the cost approach, which equates to the current replacement cost of a modern equivalent asset. The cost to replace the asset is to equal the amount that a market participant buyer of that asset would pay to acquire it.

Fair Value Hierarchy - the general valuation approach to determine the fair value of Council’s Artworks is to use the market price or purchase price of the original transaction or if the work is in the form of a donation an external valuation is undertaken corroborated by market evidence (Level 2 input). It is noted that the valuation process requires a significant level of professional judgement and this can impact significantly on the fair value. As such the level of valuation input for artworks was considered level 3.

Library Books

Valuation Technique – These assets are recognised at depreciated historical cost as an acceptable substitute for fair value because any difference between fair value and depreciated historical cost is unlikely to be material.

Fair Value Hierarchy – The key unobservable unit to the valuation of this category is asset condition and useful life. The condition of assets is reviewed on an annual basis and an assessment of remaining life undertaken based on these results.

page 66

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Other Assets

Other Assets is a catch all for the remaining assets held by Council and includes Waste Assets such as Cell Development and Liners, Public Art, Power Poles and Crematorium and Cemetery Beams and Walls.

Valuation Technique - Other Assets are recognised using the cost method.

Fair Value Hierarchy – While some elements of the cost method can be supported by market evidence (Level 2) others factors require professional judgement such as asset condition and useful life. As these inputs can have a significant impact on the fair value the valuation input all Other Assets were considered level 3.

Tip Remediation Asset

Valuation Technique – Council’s Tip Remediation Asset is measured using the cost method.

Fair Value Hierarchy – Whytes Gully Waste Disposal Depot will require remediation and restoration works to be carried out during and at the end of its useful life. The cash outflows relating to these remediation and restoration works have been modelled and recognised as an asset in Note 9 of Council’s statements. Key unobservable inputs are the discount rate, cost escalation rate, timing of costs and future environmental management requirements. As such the level of valuation input for Council’s fair valued tip asset was considered a Level 3.

page 67

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

A summary of the Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:

Asset Category Valuation Frequency Description of Process Valuer* Responsibility

Monthly valuation using the current price Financial Assets Monthly External Finance Division in an active market for similar assets Assessed each year for material change Investment Properties Annually External Property Division and adjusted accordingly Full valuation using current unit rates and comparable work. Assessed each Infrastructure & Strategic Infrastructure 5 years Internal year for material change and adjusted Planning Division accordingly Assessment of remaining useful life undertaken with adjustments to Property Plant & Equipment Annually Internal Finance Division consumption patterns that may impact fair value Assessment of remaining useful life Office Equipment & Furniture & undertaken with adjustments to Annually Internal Finance Division Fittings consumption patterns that may impact fair value Full valuation every 5 years or index Operational Land 5 Years External Property Division applied annually if material Valuer General Land Values or Average Property / Finance Community Land 5 Years Unit Rate for similar properties if not Valuer General / Internal Division available Valuer General Land Values or Average Land Under Roads 5 Years Unit Rate used as proxy to derive en Valuer General / Internal Finance Division globo rate Infrastructure & Strategic Buildings – Non Specialised & Full valuation every 5 years or index 5 Years External / Internal Planning Division / Specialised applied annually if material Property Division

page 68

Financial Statements 2018_

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

Asset Category Valuation Frequency Description of Process Valuer Responsibility

Assessment of remaining useful life undertaken with adjustments Intangibles 5 years Internal Finance Division to consumption patterns that may impact fair value Assessment of remaining useful life undertaken with adjustments Infrastructure & Strategic Other Structures 5 years Internal to consumption patterns that may Planning Division impact fair value Other Open Space / Recreational Full valuation every 5 years or Infrastructure & Strategic 5 years Internal Assets index applied annually if material Planning Division Full valuation every 5 years or Infrastructure & Strategic Swimming Pools - Structures 5 years External / Internal index applied annually if material Planning Division Assessment of remaining useful life undertaken with adjustments Library Books Annually Internal Finance Division to consumption patterns that may impact fair value Full valuation every 5 years or Other Assets 5 years Internal Various index applied annually if material Reassessment of discount rate Tip Remediation Asset Annually and application to discounted Internal Finance Division cash flows if material

* Internal Valuation refers to the utilisation of in-house expertise to value Council’s assets.

page 69

Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 22. Fair value measurement (continued)

$ ’000

(3). Fair value measurements using significant unobservable inputs (level 3) a. The following tables present the changes in level 3 fair value asset classes.

class Financial Investment here assets property IPP&E Total

Opening balance – 1/7/16 – 31,663 4,775 2,270,419 2,306,857

Transfers from/(to) another asset class – – – (6,380) (6,380) Purchases (GBV) – 11,125 – 119,994 131,119 Disposals (WDV) – (30) – (7,199) (7,229) Depreciation and impairment – – – (60,671) (60,671) FV gains – other comprehensive income – – – (511) (511) FV gains – Income Statement – 670 – – 670 Prior period errors – – – (4,649) (4,649) Impairment (refer Note 4d) – – – (760) (760) Land remediation reversal – – – (315) (315) Transfer to expense – – – (300) (300)

Closing balance – 30/6/17 – 43,428 4,775 2,309,628 2,357,831

Purchases (GBV) – 3,348 – 114,042 117,390 Disposals (WDV) – (4,057) – (8,447) (12,504) Depreciation and impairment – – – (59,673) (59,673) FV gains – other comprehensive income – – – 5,692 5,692 FV gains – Income Statement – 443 5 – 448 Waste remediation reassessment – – – (4,863) (4,863) Transfer to expense – – – (73) (73)

Closing balance – 30/6/18 – 43,162 4,780 2,356,306 2,404,248

Asset Asset Held for class class sale assets IPP&E Total

Opening balance – 1/7/16 – – – 6,381 6,381

Transfers from/(to) another asset class – – 6,381 (6,381) –

Closing balance – 30/6/17 – – 6,381 – 6,381

Disposals (WDV) – – (6,381) – (6,381)

Closing balance – 30/6/18 – – – – –

page 70 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X12A0T Note 23. Related party transactions

$ ’000 a. Key management personnel Key management personnel (KMP) of the Council are those persons having the authority and responsibility for planning, directing and controlling the activities of the council, directly or indirectly.

The aggregate amount of KMP compensation included in the Income Statement is:

Compensation: 2018 2017 Short-term benefits 2,176 1,955 Termination benefits – 2 Total 2,176 1,957 b. Other transactions with KMP and their related parties Council has assessed other transactions with KMP and their related parties as not material for recognition in these statements. c. Other related party transactions

Nature of the transaction Value of Outstanding Terms and conditions transactions balance during year (incl. loans and commitments) 2018 $ Associate Marketing, events, business and investment in LGA 1,375,691 – Amounts provided under a funding agreement. LGA Major Events 20,000 – Amounts provided under a funding agreement. Subsidised office space 146,000 – Amounts provided under a funding agreement. Event sponsorship & support 90,800 – Based on specific events Feasibility study 7,500 – Visitor guide 3,950 – Partner program 3,341 – Contribution to Green Bus Service Extension 3,255 – Commission on accommodation bookings 665 – Associate Contribution for management of the Performing 689,829 – Amounts provided Arts Centre under a funding agreement. Town Hall management 375,000 – Amounts provided under a funding agreement. Community Subsidy 22,727 – Amounts provided under a funding agreement. Venue Hire 10,956 – Ticket Purchase 9,311 – Town Hall - Evacuation Ushers 5,546 – Student Transportation 736 – Power Supply for event 187 –

page 71 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 23. Related party transactions (continued)

c. Other related party transactions (continued)

Nature of the transaction Value of Outstanding Terms and conditions transactions balance during year (incl. loans and commitments) 2017 Amounts provided under a funding agreement

Associate 1,010,188 – Marketing, events, business and investment in LGA.

331,950 – LGA Major events.

146,000 – Subsidised office space

Amounts provided Associate under a funding agreement.

673,175 – Contribution for Management of the Performing Arts Centre 350,000 – Town Hall management.

Note 24. Events occurring after the reporting date

Council is unaware of any material or significant ‘non-adjusting events’ that should be disclosed.

page 72 Financial Statements 2018 Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X13A0T Note 25. Statement of developer contributions

$ ’000

Council recovers contributions, raises levies and enters into planning agreements on development works that are subject to a development consent issued by Council. All contributions must be spent/utilised for the specific purpose they were levied and any interest applicable to unspent funds must be attributed to remaining funds.

The following tables detail the receipt, interest and use of the above contributions and levies and the value of all remaining funds which are 'restricted' in their future use.

SUMMARY OF CONTRIBUTIONS AND LEVIES Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Drainage 3,910 55 – 123 – – 4,088 – Roads (3,967) 1,857 – (144) (5,497) – (7,751) – Open space 3,568 1,645 – 147 – – 5,360 – Community facilities 738 348 – 30 – – 1,116 – Administration (817) 5 – (29) (336) – (1,177) – Public transport 555 5 – 17 – – 577 – S7.11 contributions – under a plan 3,987 3,915 – 144 (5,833) – 2,213 – S7.12 levies – under a plan 12,062 5,066 49 422 (1,333) – 16,266 – Total S7.11 and S7.12 revenue under plans 16,049 8,981 49 566 (7,166) – 18,479 –

S7.11 not under plans 318 9 – 10 – – 337 – S7.4 planning agreements – 141 1,433 4 (1,433) – 145 Total contributions 16,367 9,131 1,482 580 (8,599) – 18,961 –

page 73 Financial Statements 2018 Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 25. Statement of developer contributions (continued)

$ ’000

S7.11 CONTRIBUTIONS – UNDER A PLAN

CONTRIBUTION PLAN - WEST DAPTO Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Drainage 3,910 55 – 123 – – 4,088 – Roads (3,967) 1,857 – (144) (5,497) – (7,751) – Open space 3,568 1,645 – 147 – – 5,360 – Community facilities 738 348 – 30 – – 1,116 – Administration (817) 5 – (29) (336) – (1,177) – Public transport 555 5 – 17 – – 577 – Total 3,987 3,915 – 144 (5,833) – 2,213 –

S7.12 LEVIES – UNDER A PLAN CONTRIBUTION PLAN - WOLLONGONG Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) City Wide 13,539 4,020 49 459 (1,249) – 16,818 – City Centre (1,477) 1,046 – (37) (84) – (552) – Total 12,062 5,066 49 422 (1,333) – 16,266 –

A The Wollongong S94A plan is a levy based plan that reflects development activity in the Local Government Area excluding areas covered by the West Dapto Section 94 Plan.

B Figures provided include amounts collected under the Section 94A Plan as well as contributions received from relevant development consents approved prior to 2006 that contained conditions for contributions to be made, under now repealed Section 94 plans. These are transferred and applied towards items within the Section 94A Plan Works schedule as the Section 94A is the replacement for the plans repealed in June 2006.

page 74 Financial Statements 2018 Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 25. Statement of developer contributions (continued)

$ ’000

S7.11 CONTRIBUTIONS – NOT UNDER A PLAN

CONTRIBUTION PLAN - CALDERWOOD Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Roads 318 9 – 10 – – 337 – Total 318 9 – 10 – – 337 –

A The Calderwood Urban Release Area was historically in the Shellharbour City Local Government Area. However, the Urban Release Area was later expanded during the State Government's major project approval process to include land that straddles the local government boundary, which comprises 107 hectares of land in the Wollongong Local Government Area at Marshall Mount. B In 2013, the Land and Environment Court imposed a development contribution condition on Stage 1 of the Calderwood development within Shellharbour City Council Local Government area, requiring the payment of a contribution of $1,320 per lot to Wollongong City Council to be used towards the upgrades of Marshall Mount Road and Yallah Road. The payments reflected in the above relate to these court proceedings. C Wollongong City Council and Lendlease Communities (Australia) Limited have entered into a Planning Agreement for the remainder of the contributions relating to the Calderwood development. No contributions have been received as a result of the Planning Agreement.

S7.4 planning agreements

Contributions Interest Expenditure Internal Held as Cumulative internal PURPOSE Opening received during the year earned during borrowing restricted borrowings balance Cash Non-cash in year year (to)/from asset due/(payable) Roads – 141 1,433 4 (1,433) – 145 – Total – 141 1,433 4 (1,433) – 145 –

page 75 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X14A1T Note 26. Financial result and financial position by fund

Council utilises only a general fund for its operations.

X14A0T Note 27(a). Statement of performance measures – consolidated results

Amounts Indicator Prior periods Benchmark $ ’000 2018 2018 2017 2016

Local government industry indicators – consolidated

1. Operating performance ratio Total continuing operating revenue (1) excluding capital grants and contributions less operating expenses 7,552 2.76% 10.74% 0.87% > 0.00% Total continuing operating revenue (1) excluding capital 273,201 grants and contributions

2. Own source operating revenue ratio Total continuing operating revenue (1) excluding all grants and contributions 241,837 77.06% 74.75% 79.55% > 60.00% Total continuing operating revenue (1) 313,838

3. Unrestricted current ratio Current assets less all external restrictions (2) 121,584 (3, 4) 2.93x 2.65x 2.25x > 1.5x Current liabilities less specific purpose liabilities 41,472

4. Debt service cover ratio Operating result (1) before capital excluding interest and depreciation/impairment/amortisation 71,438 6.30x 8.51x 6.44x > 2x Principal repayments (Statement of Cash Flows) 11,332 plus borrowing costs (Income Statement)

5. Rates, annual charges, interest and extra charges outstanding percentage Rates, annual and extra charges outstanding 9,494 < 5% 4.66% 5.88% 4.79% Rates, annual and extra charges collectible 203,728 metro

6. Cash expense cover ratio Current year’s cash and cash equivalents plus all term deposits 114,606 x12 5.83 mths 6.9 mths 7.3 mths > 3 mths Payments from cash flow of operating and 19,670 financing activities

Notes (1) Excludes fair value adjustments and reversal of revaluation decrements, net gain/(loss) on sale of assets and the net share of interests in joint ventures and associates. (2) Refer Notes 6-8 inclusive. Also excludes any real estate and land for resale not expected to be sold in the next 12 months. (3) Refer to Notes 13 and 14. (4) Refer to Note 13(b) and 14(a) – excludes all payables and provisions not expected to be paid in the next 12 months (incl. ELE).

page 76 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X15A0T Note 27(b). Statement of performance measures – consolidated results (graphs)

Commentary on 2017/18 result 1. Operating performance ratio Purpose of 12% operating performance ratio 2017/18 ratio 2.76% 10% The 2017 result has been favourably distorted by 8% the early payment of the first two quarters of the This ratio measures 2017/18 Financial Assistance Grant ( $9M) and 6%

Ratio % 11% Council’s the elimination of carbon tax liability ($4.1M ) . achievement of The variation has been further impacted by 4% containing operating election cost ( $1M) and abnormal material expenditure within disposal costs ($2.8M) in 2017/18. Without these 2% 1% operating revenue. abnormal variations, this indicator would be 2% 3% 5.2% and 5.9% for 2016/17 and 2017/18 0% respectively. 2015 2016 2017 2018

Benchmark: ――― Minimum >=0.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Commentary on 2017/18 result 2. Own source operating revenue ratio Purpose of own 100% source operating 2017/18 ratio 77.06% 90% revenue ratio 80% 70% 60% This ratio measures 50% fiscal flexibility. It is

Ratio % This result is consistent with previous reporting the degree of reliance 40% 81% 80% 77% periods. It is noted that total revenue includes 75% on external funding 30% non-cash contributed assets which fluctuate from sources such as year to year and impact this result. 20% operating grants and 10% contributions. 0% 2015 2016 2017 2018

Benchmark: ――― Minimum >=60.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Commentary on 2017/18 result 3. Unrestricted current ratio Purpose of 3.5 unrestricted current ratio 2017/18 ratio 2.93x 3.0

2.5 1. Council's strategy is to maximise the use of To assess the 2.0 available funds and target a lean unrestricted adequacy of working ratio. 2. Cash assets held for future waste facility Ratio (x) 1.5 2.9 capital and its ability 2.6 requirements are held in the unrestrcited ratio. to satisfy obligations 2.2 2.3 As the requirements to hold funds for waste 1.0 in the short term for facility rehabilitation is significant the measure is the unrestricted 0.5 expected to increase until payments are activities of Council. required. 0.0 2015 2016 2017 2018

Benchmark: ――― Minimum >=1.50 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

page 78 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

Note 27(b). Statement of performance measures – consolidated results (graphs)

4. Debt service cover ratio Commentary on 2017/18 result Purpose of debt 12.0 service cover ratio 2017/18 ratio 6.30x 10.0

8.0 This ratio measures 6.0 the availability of Ratio (x) operating cash to The result indicates that Council can adequately 4.0 8.5 7.6 service debt including service its outstanding debt. 6.4 6.3 interest, principal and 2.0 lease payments

0.0 2015 2016 2017 2018

Benchmark: ――― Minimum >=2.00 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

5. Rates, annual charges, interest and Commentary on 2017/18 result extra charges outstanding percentage Purpose of rates 7% and annual charges outstanding ratio 2017/18 ratio 4.66% 6%

5% The on-going development of improved recovery 4% To assess the impact processes has continued for all classes of rate

Ratio % of uncollected rates 3% 5.88% payers and this is reflected in this result. One 5.48% and annual charges 4.79% such recovery strategy that has been 4.66% on Council’s liquidity 2% implemented entails contacting the corporate and the adequacy of ratepayers to remind them that instalments are 1% recovery efforts. due. 0% 2015 2016 2017 2018

Benchmark: ――― Maximum <5.00% Ratio is within Benchmark Source for Benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside Benchmark

6. Cash expense cover ratio Commentary on 2017/18 result Purpose of cash 9.0 expense cover ratio 2017/18 ratio 5.83 mths 8.0 7.0 6.0 This liquidity ratio 5.0 indicates the number 4.0 8.0 of months a Council The result of this measure reflects a high level of 7.3 6.9 3.0 can continue paying liquidity in Council's investment portfolio at the Ratio (mths) 5.8 for its immediate end of 2017/18. 2.0 expenses without 1.0 additional cash inflow. 0.0 2015 2016 2017 2018

Benchmark: ――― Minimum >=3.00 Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

page 79 Financial Statements 2018

Wollongong City Council

Notes to the Financial Statements for the year ended 30 June 2018

X16A0T Note 28. Council information and contact details

Principal place of business: 41 Burelli Street Wollongong NSW 2500

Contact details Mailing address: Opening hours: Locked Bag 8821 Administration Building: 8:30am - 5:00pm Wollongong NSW 2500

Telephone: (02) 4227 7111 Internet: www.wollongong.nsw.gov.au Facsimile: (02) 4227 7277 Email: [email protected]

Officers Elected members GENERAL MANAGER LORD MAYOR David Farmer Gordon Bradbery

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORS Brian Jenkins Ward 1 Leigh Colacino PUBLIC OFFICER Janice Kershaw Clare Phelan Jenelle Rimmer Mithra Cox AUDITORS Ward 2 Audit Office of John Dorahy Level 15, 1 Margaret Street, Sydney, NSW, 2000 David Brown (DEPUTY LORD MAYOR) Tania Brown Cath Blakey Ward 3 Chris Connor Vicky King Other information Dom Figliomeni ABN: 63 139 525 939 Cameron Walters

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INDEPENDENT AUDITOR’S REPORT Report on the general purpose financial report

Wollongong City Council

To the Councillors of the Wollongong City Council Opinion I have audited the accompanying financial report of Wollongong City Council (the Council), which comprise the Income Statement and Statement of Comprehensive Income for the year ended 30 June 2018, the Statement of Financial Position as at 30 June 2018, the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Statement by Councillors and Management.

In my opinion,

• the Council’s accounting records have been kept in accordance with the requirements of the Local Government Act 1993, Chapter 13, Part 3, Division 2 (the Division) • the financial report: - has been presented, in all material respects, in accordance with the requirements of this Division - is consistent with the Council’s accounting records - presents fairly, in all material respects, the financial position of the Council as at 30 June 2018, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards • all information relevant to the conduct of the audit has been obtained • no material deficiencies in the accounting records or financial report have come to light during the audit.

My opinion should be read in conjunction with the rest of this report. Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Report’ section of my report.

I am independent of the Council in accordance with the requirements of the:

• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an Auditor-General • mandating the Auditor-General as auditor of councils • precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Other Information Other information comprises the information included in the Council’s annual report for the year ended 30 June 2018, other than the financial report and my Independent Auditor’s Report thereon. The Councillors are responsible for the other information. At the date of this Independent Auditor’s Report, the other information I have received comprise the special purpose financial statements and Special Schedules (the Schedules).

My opinion on the financial report does not cover the other information. Accordingly, I do not express any form of assurance conclusion on the other information. However, as required by the Local Government Act 1993, I have separately expressed an opinion on the special purpose financial statements and Special Schedule 2 - Permissible income for general rates.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other information, I must report that fact.

I have nothing to report in this regard. The Councillors’ Responsibilities for the Financial Report The Councillors are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Local Government Act 1993, and for such internal control as the Councillors determine is necessary to enable the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Councillors are responsible for assessing the Council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting except where the Council will be dissolved or amalgamated by an Act of Parliament, or otherwise cease operations. Auditor’s Responsibilities for the Audit of the Financial Report My objectives are to:

• obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error • issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial report.

A description of my responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The description forms part of my auditor’s report.

My opinion does not provide assurance:

• that the Council carried out its activities effectively, efficiently and economically • on the Original Budget information included in the Income Statement, Statement of Cash Flows, and Note 21 Material budget variations • on the Special Schedules. A separate opinion has been provided on Special Schedule 2 - Permissible income for general rates • about the security and controls over the electronic publication of the audited financial report on any website where it may be presented • about any other information which may have been hyperlinked to/from the financial report.

Dominika Ryan Director

28 September 2018 SYDNEY

Councillor Gordon Bradbery OAM Lord Mayor Contact: Dominika Ryan Wollongong City Council Phone no: 02 9275 7336 Locked Bag 8821 WOLLONGONG DC NSW 2500 Our ref: D1821133/1811

28 September 2018

Dear Lord Mayor

Report on the Conduct of the Audit for the year ended 30 June 2018 Wollongong City Council

I have audited the general purpose financial statements of the Wollongong City Council (the Council) for the year ended 30 June 2018 as required by section 415 of the Local Government Act 1993 (the Act).

I expressed an unmodified opinion on the Council’s general purpose financial statements.

This Report on the Conduct of the Audit (the Report) for the Council for the year ended 30 June 2018 is issued in accordance with section 417 of the Act. This Report should be read in conjunction with my audit opinion on the general purpose financial statements issued under section 417(2) of the Act. FINANCIAL POSITION Cash and Investments

Cash and Investments 2018 2017 Commentary

$m $m

External restrictions 74.2 75.8 Council’s cash and investments at 30 June 2018 was lower by $9.9 million compared to previous year. The Internal restrictions 68.1 57.4 decrease was largely due to increased net sale of Unrestricted 15.4 34.4 investment securities to supplement the lower cash generated from the Council’s operating activities. Cash and investments 157.7 167.6 Externally restricted balances include unexpended specific loans, developer contributions and domestic waste management charges. Balances are internally restricted due to Council policy or decisions for forward plans including works program. Unrestricted balances provide liquidity for day-to-day operations.

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Debt At 30 June 2018, Council had external borrowings of $32.8 million (30 June 2017: $39.7 million). The loans are secured over Council’s general rating income.

At 30 June 2018, Council also had access to a $300,000 (30 June 2017: $300,000) bank overdraft facility. This facility was unused at year end. INCOME STATEMENT Operating result

2018 2017 Variance $m $m %

Rates and annual 191.4 184.5 charges revenue 3.7

Grants and 72.0 81.7 11.9 contributions revenue 9

Operating result 48.8 69.5 29.8 for the year

Net operating result 8.1 27.4 70.4 before capital amounts

Rates and annual charges revenue ($191.4 million) increased by $6.9 million (3.7 per cent) in 2017–18 due to:

• 1.5 per cent general rate increase • growth in subdivision in West Dapto area and infill developments • increase in domestic waste management services as Wollongong City grows • lower domestic waste management charges in 2016–17 due to the refund of carbon tax collected in prior years.

Grants and contributions revenue ($72.0 million) decreased by $9.7 million ($11.9 per cent) in 2017–2018. This was mainly caused by the timing of financial assistance grants received in the past two years and lower level of subdivision dedications.

Council’s operating result (including the effect of depreciation and amortisation expense of $60.1 million) before and after capital grants and contributions were $19.3 million and $20.7 million lower respectively than the 2016–17 result. The decrease was primarily driven by:

• decrease in grants and contributions revenue of $9.7 million • decrease in other revenue of $3.9 million • decrease in user charges and fees of $2.7 million • increase in materials and contracts expense of $6.7 million • increase in employee benefits and on-costs expense of $4.7 million and • increase in other expenses of $4.6 million.

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STATEMENT OF CASH FLOWS

After remaining largely steady from Net cash flows for the year 2015–16 to 2016–17, cash flows from 120 operating activities decreased by 100 $21.4 million in 2017–18. This was 80 due to higher payments during the 60 40 year offset by the increase in rates 20 and annual charges. The decrease in 0

grants and contributions also $million -20 contributed to lower cash flows. -40 Cash flows from investing activities -60 -80 was also $24.5 million lower than -100 2016–17 mainly due to increased net 2016 2017 2018 sale of investment securities. Year ended 30 June Operating activities Investing activities Financing activities

PERFORMANCE RATIOS The definition of each ratio analysed below (except for the ‘building and infrastructure renewals ratio’) is included in Note 27 of the Council’s audited general purpose financial statements. The ‘building and infrastructure renewals ratio’ is defined in Council’s Special Schedule 7 which has not been audited. Operating performance ratio

Council’s operating performance ratio Operating performance ratio exceeded the industry benchmark over the past three years. Its 12 operating performance ratio in – 2016 17 was higher than this year 10 mainly due to the early payment of the first two instalments of the 2017–18 Ratio 8 Financial Assistance Grants. % The ‘operating performance ratio’ 6 measures how well council contained 4 operating expenditure within operating revenue (excluding capital grants and 2 contributions, fair value adjustments, and reversal of revaluation 0 decrements). The benchmark set by 2016 2017 2018 the Office of Local Government (OLG) Year ended 30 June is greater than zero per cent. Operating performance ratio Industry benchmark > 0%

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Own source operating revenue ratio

Council’s own source operating Own source operating revenue ratio revenue ratio exceeded the industry benchmark over the past three years. 90 The current year ratio of 77.1 per cent 80 is largely consistent with the previous 70 reporting periods. Ratio 60 The ‘own source operating revenue % 50 ratio’ measures council’s fiscal 40 flexibility and the degree to which it 30 relies on external funding sources 20 such as operating grants and 10 contributions. The benchmark set by 0 OLG is greater than 60 per cent. 2016 2017 2018 Year ended 30 June Own source operating revenue ratio Industry benchmark > 60%

Unrestricted current ratio

Council’s unrestricted current ratio Unrestricted current ratio exceeded the industry benchmark over the past three years. The ratio 3.5 increased as funds held for future 3 waste facility requirements is included in the ratio. Council anticipates the 2.5 ratio will increase in coming years for Ratio 2 this reason. Notwithstanding, x Council’s strategy is to maximise the 1.5 use of available funds and not have 1 an excessive ratio. 0.5 The ‘unrestricted current ratio’ is 0 specific to local government and 2016 2017 2018 represents council’s ability to meet its Year ended 30 June short-term obligations as they fall due. Unrestricted current ratio The benchmark set by OLG is greater Industry benchmark > 1.5x than 1.5 times.

Debt service cover ratio

Council’s debt service cover ratio Debt service cover ratio exceeded the industry benchmark over the past three years. Its ratio 9 decreased from 8.5 to 6.3 at 8 30 June 2018. A higher ratio indicates 7 Council has greater capacity to take 6 on, and service additional debt. Ratio 5 x 4 The ‘debt service cover ratio’ 3 measures the operating cash to 2 service debt including interest, 1 principal and lease payments. The 0 benchmark set by OLG is greater than 2016 2017 2018 two times. Year ended 30 June Debt service cover ratio Industry benchmark > 2x

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Rates and annual charges outstanding ratio

Council met the rates and annual Rates and annual charges outstanding ratio charges outstanding ratio benchmark in 2017-18. Last year’s ratio was 7 negatively affected by an unpaid debt 6 of $1.6 million by one corporate 5 ratepayer. 4 The ‘rates and annual charges Ratio outstanding ratio’ assesses the impact % 3 of uncollected rates and annual 2 charges on council’s liquidity and the 1 adequacy of debt recovery efforts. 0 The benchmark set by OLG is less 2016 2017 2018 than 5 per cent for metro councils. Year ended 30 June Rates and annual charges outstanding ratio Industry benchmark < 5%

Cash expense cover ratio

Council’s cash expense cover ratio Cash expense cover ratio exceeded the industry benchmark over the past three years. The ratio 8 ranged from 7.3 to 5.8 months. 6 Council’s ratio continuous to decline. Despite this, it is still well above the 4

benchmark. Ratio

This liquidity ratio indicates the (months) 2 number of months the council can continue paying for its immediate 0 expenses without additional cash 2016 2017 2018 inflow. The benchmark set by OLG is Year ended 30 June greater than three months. Cash expense cover ratio Industry benchmark > 3 months

Building and infrastructure renewals ratio (unaudited)

Council met the building and Building and infrastructure renewals ratio infrastructure renewals ratio benchmark in the past two years. 110 There was no significant movement in the past two years. 105 The ‘building and infrastructure renewals ratio’ assesses the rate at Ratio100 which these assets are being renewed % against the rate at which they are 95 depreciating. The benchmark set by OLG is greater than 100 per cent. 90 This ratio is sourced from council’s 85 Special Schedule 7 which has not 2016 2017 2018 been audited. Year ended 30 June Building and infrastructure renewals ratio Industry benchmark > 100%

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OTHER MATTERS New accounting standards implemented

AASB 2016-2 ‘Disclosure Initiative – Amendments to AASB 107’

Effective for annual reporting periods This Standard requires entities to provide disclosures that beginning on or after 1 January 2017 enable users of financial statements to evaluate changes (both cash flows and non-cash changes) in liabilities arising from financing activities. Council’s disclosure of the changes in their liabilities arising from financing activities is disclosed in Note 16 (c).

AASB 2016-4 ‘Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities – Amendments to AASB 136’

Effective for annual reporting periods This Standard no longer requires not-for-profit entities to beginning on or after 1 January 2017 consider AASB 136 Impairment of Assets for non-cash- generating specialised assets at fair value. It is expected for not-for-profit entities holding non-cash- generating, the recoverable amount of these assets is expected to be materially the same as fair value, determined under AASB 113 Fair Value Measurement.

Legislative compliance My audit procedures did not identify any instances of non-compliance with legislative requirements or a material deficiency in the Council’s accounting records or financial reports. The Council’s:

• accounting records were maintained in a manner and form to allow the general purpose financial statements to be prepared and effectively audited • staff provided all accounting records and information relevant to the audit.

The Council’s:

• accounting records were maintained in a manner and form that facilitated the preparation and the effective audit of the general purpose financial statements • staff provided all accounting records and information relevant to the audit.

Dominika Ryan Director, Financial Audit Services

cc: Mr David Farmer, General Manager Tim Hurst, Acting Chief Executive of the Office of Local Government

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Special Schedules 2018

Wollongong City Council

Special Schedules for the year ended 30 June 2018

Contents Page

Special Schedules 1

Special Schedule 1 Net Cost of Services 2

Special Schedule 2 Permissible income for general rates 4 Special Schedule 2 Independent Auditors Report 5

Special Schedule 7 Report on Infrastructure Assets 6

1 Special Schedules are not audited (with the exception of Special Schedule 2).

Background

(i) These Special Schedules have been designed to meet the requirements of special purpose users such as;

 the NSW Grants Commission  the Australian Bureau of Statistics (ABS),  the NSW Office of Water (NOW), and  the Office of Local Government (OLG).

(ii) The financial data is collected for various uses including;

 the allocation of Financial Assistance Grants,  the incorporation of Local Government financial figures in national statistics,  the monitoring of loan approvals,  the allocation of borrowing rights, and  the monitoring of the financial activities of specific services.

page 1 Special Schedules 2018

Wollongong City Council

X2A0T Special Schedule 1 – Net Cost of Services for the year ended 30 June 2018

$’000 Expenses from. Income from Net cost. Function or activity continuing. continuing operations of services. operations. Non-capital. Capital.

Governance – – – –

Administration 32,752 5,174 – (27,578)

Public order and safety Fire service levy, fire protection, emergency services 5,256 521 730 (4,005) Beach control 5,706 2 20 (5,684) Enforcement of local government regulations 2,136 2,558 – 422 Animal control 1,461 601 – (860) Other 109 3 – (106) Total public order and safety 14,668 3,685 750 (10,233)

Health 1,433 834 – (599)

Environment Noxious plants and insect/vermin control – – – – Other environmental protection 7,296 613 659 (6,024) Solid waste management 37,337 45,021 – 7,684 Street cleaning 4,934 13 – (4,921) Drainage 13,670 1,817 267 (11,586) Stormwater management – – – – Total environment 63,237 47,464 926 (14,847)

Community services and education Administration and education 56 12 – (44) Social protection (welfare) 4,894 3,418 – (1,476) Aged persons and disabled 364 47 – (317) Children’s services 3,667 1,689 – (1,978) Total community services and education 8,981 5,166 – (3,815)

Housing and community amenities Public cemeteries 2,359 2,307 – (52) Public conveniences 709 – – (709) Street lighting 3,154 684 – (2,470) Town planning 13,698 5,257 10,869 2,428 Other community amenities 3,294 1,560 – (1,734) Total housing and community amenities 23,214 9,808 10,869 (2,537)

page 2 Special Schedules 2018

Wollongong City Council

Special Schedule 1 – Net Cost of Services (continued) for the year ended 30 June 2018

$’000 Expenses from. Income from Net cost. Function or activity continuing. continuing operations of services. operations. Non-capital. Capital.

Recreation and culture Public libraries 11,901 843 – (11,058) Museums – – – – Art galleries 2,965 183 – (2,782) Community centres and halls 5,111 549 – (4,562) Performing arts venues 2,249 5 – (2,244) Other performing arts – – – – Other cultural services 937 19 – (918) Sporting grounds and venues 4,428 567 116 (3,745) Swimming pools 7,193 688 – (6,505) Parks and gardens (lakes) 18,648 810 121 (17,717) Other sport and recreation 3,617 2,743 – (874) Total recreation and culture 57,049 6,407 237 (50,405) Fuel and energy – – – – Agriculture – – – – Mining, manufacturing and construction Building control – – – – Other mining, manufacturing and construction – – – – Total mining, manufacturing and const. – – – – Transport and communication Urban roads (UR) – local 41,093 1,646 27,190 (12,257) Urban roads – regional – – – – Sealed rural roads (SRR) – local – – – – Sealed rural roads (SRR) – regional – – – – Unsealed rural roads (URR) – local – – – – Unsealed rural roads (URR) – regional – – – – Bridges on UR – local – – – – Bridges on SRR – local – – – – Bridges on URR – local – – – – Bridges on regional roads – – – – Parking areas 2,593 1,266 – (1,327) Footpaths 9,201 29 447 (8,725) Aerodromes – – – – Other transport and communication 837 – – (837) Total transport and communication 53,724 2,941 27,637 (23,146) Economic affairs Camping areas and caravan parks 5,766 7,106 – 1,340 Other economic affairs 5,186 5,872 218 904 Total economic affairs 10,952 12,978 218 2,244 Totals – functions 266,010 94,457 40,637 (130,916) (1) General purpose revenues – 178,879 – 178,879 Share of interests – joint ventures and associates using the equity method – 803 – 803 (2) NET OPERATING RESULT 266,010 274,139 40,637 48,766

(1) Includes: rates and annual charges (including ex gratia, excluding water and sewer), non-capital general purpose (2) As reported in the Income Statement grants, interest on investments (excluding externally restricted assets) and interest on overdue rates and annual charges

page 3 Special Schedules 2018

Wollongong City Council

X3A0T Special Schedule 2 – Permissible income for general rates for the year ended 30 June 2019

Calculation Calculation $’000 2018/19 2017/18

Notional general income calculation (1)

Last year notional general income yield a 160,469 157,481 (2) Plus or minus adjustments b 854 668 Notional general income c = (a + b) 161,323 158,149

Permissible income calculation (3) Special variation percentage d 0.00% 0.00% Or rate peg percentage e 2.30% 1.50% Or crown land adjustment (incl. rate peg percentage) f 0.00% 0.00%

Less expiring special variation amount g – – Plus special variation amount h = d x (c – g) – – Or plus rate peg amount i = c x e 3,710 2,372 Or plus Crown land adjustment and rate peg amount j = c x f – – Sub-total k = (c + g + h + i + j) 165,033 160,521

Plus (or minus) last year’s carry forward total l 190 30 Less valuation objections claimed in the previous year m (138) – Sub-total n = (l + m) 52 30

Total permissible income o = k + n 165,085 160,551

Less notional general income yield p 165,477 160,469 Catch-up or (excess) result q = o – p (392) 82

(4) Plus income lost due to valuation objections claimed r 396 138 (5) Less unused catch-up s – (30) Carry forward to next year t = q + r – s 4 190

Notes

(1) The notional general income will not reconcile with rate income in the financial statements in the corresponding year. The statements are reported on an accrual accounting basis which include amounts that relate to prior years’ rates income.

(2) Adjustments account for changes in the number of assessments and any increase or decrease in land value occurring during the year. The adjustments are called ‘supplementary valuations’ as defined in the Valuation of Land Act 1916 .

(3) The ‘special variation percentage’ is inclusive of the rate peg percentage and where applicable Crown land adjustment.

(4) Valuation objections are unexpected changes in land values as a result of land owners successfully objecting to the land value issued by the Valuer-General. Councils can claim the value of the income lost due to valuation objections in any single year.

(5) Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils will have a nominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

(6) Carry forward amounts which are in excess (an amount that exceeds the permissible income) require ministerial approval by order published in the NSW Government Gazette in accordance with section 512 of the Local Government Act 1993 . The OLG will extract these amounts from Council’s Special Schedule 2 in the financial data return (FDR) to administer this process.

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INDEPENDENT AUDITOR’S REPORT Special Schedule 2 - Permissible Income for general rates Wollongong City Council

To the Councillors of Wollongong City Council Opinion I have audited the accompanying Special Schedule 2 – Permissible Income for general rates (the Schedule) of Wollongong City Council (the Council) for the year ending 30 June 2018.

In my opinion, the Schedule of the Council for the year ending 30 June 2018 is prepared, in all material respects in accordance with the requirements of the Local Government Code of Accounting Practice and Financial Reporting (LG Code) issued by the Office of Local Government (OLG), and is in accordance with the books and records of the Council.

My opinion should be read in conjunction with the rest of this report. Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are described in the ‘Auditor’s Responsibilities for the Audit of the Schedule’ section of my report.

I am independent of the Council in accordance with the requirements of the:

• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an Auditor-General • mandating the Auditor-General as auditor of councils • precluding the Auditor-General from providing non-audit services.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Emphasis of Matter – Basis of Accounting Without modifying my opinion, I draw attention to the special purpose framework used to prepare the Schedule. The Schedule had been prepared for the purpose of fulfilling the Council’s reporting obligations under the LG Code. As a result, the Schedule may not be suitable for another purpose.

Other Information Other information comprises the information included in the Council’s annual report for the year ended 30 June 2018, other than the Schedule and my Independent Auditor’s Report thereon. The Councillors are responsible for the other information. At the date of this Independent Auditor’s Report, the other information I have received comprise the general purpose financial statements, special purpose financial statements and the Special Schedules excluding Special Schedule 2 (the other Schedules).

My opinion on the Schedule does not cover the other information. Accordingly, I do not express any form of assurance conclusion on the other information. However, as required by the Local Government Act 1993, I have separately expressed an opinion on the general purpose financial statements and the special purpose financial statements.

In connection with my audit of the Schedule, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Schedule or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other information, I must report that fact.

I have nothing to report in this regard. The Councillors’ Responsibilities for the Schedule The Councillors are responsible for the preparation of the Schedule in accordance with the LG Code. The Councillors’ responsibility also includes such internal control as the Councillors determine is necessary to enable the preparation of the Schedule that is free from material misstatement, whether due to fraud or error.

In preparing the Schedule, the Councillors are responsible for assessing the Council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless it is not appropriate to do so. Auditor’s Responsibilities for the Audit of the Schedule My objectives are to:

• obtain reasonable assurance whether the Schedule as a whole is free from material misstatement, whether due to fraud or error • issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the Schedule.

A description of my responsibilities for the audit of the Schedule is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar8.pdf. The description forms part of my auditor’s report.

My opinion does not provide assurance:

• that the Council carried out its activities effectively, efficiently and economically • about the security and controls over the electronic publication of the audited Schedule on any website where it may be presented • about any other information which may have been hyperlinked to/from the Schedule.

Dominika Ryan Director

28 September 2018 SYDNEY

Special Schedules 2018 Wollongong City Council

X5A0T Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018

$’000 Estimated cost Estimated cost Assets in condition as a percentage of gross to bring assets to bring to the 2017/18 2017/18 Gross replacement cost to satisfactory agreed level of Required Actual Net carrying replacement a Asset class Asset category standard service set by maintenance maintenance amount cost (GRC) 1 2 3 4 5 Council

Buildings Buildings 3,341 677 20,536 20,011 196,916 522,996 2% 9% 86% 3% 0% Sub-total 3,341 677 20,536 20,011 196,916 522,996 2.0% 9.0% 86.0% 3.0% 0.0%

Other Other structures 920 1,232 512 499 6,609 15,544 6% 18% 45% 23% 8% structures Sub-total 920 1,232 512 499 6,609 15,544 6.0% 18.0% 45.0% 23.0% 8.0%

Roads Sealed roads 78,982 108,907 15,984 14,971 552,342 1,401,805 5% 10% 74% 3% 8% Bridges 785 1,049 1,022 957 98,526 150,163 11% 32% 50% 0% 7% Footpaths 1,679 3,383 2,198 2,059 135,841 279,783 14% 16% 68% 1% 1% Sub-total 81,446 113,339 19,204 17,987 786,709 1,831,751 6.9% 12.7% 71.1% 2.4% 6.8%

Stormwater Stormwater drainage 64 86 2,703 2,528 523,856 931,671 4% 13% 83% 0% 0% drainage Sub-total 64 86 2,703 2,528 523,856 931,671 4.0% 13.0% 83.0% 0.0% 0.0%

Open space/ Swimming pools & Open recreational Space/Recreation 4,093 5,795 26,006 26,926 118,740 187,226 4% 9% 71% 12% 4% assets Sub-total 4,093 5,795 26,006 26,926 118,740 187,226 4.0% 9.0% 71.0% 12.0% 4.0%

TOTAL – ALL ASSETS 89,864 121,129 68,961 67,951 1,632,830 3,489,188 5.2% 12.1% 76.4% 2.5% 3.8%

Notes: a Required maintenance is the amount identified in Council’s asset management plans.

page 6 Special Schedules 2018 Wollongong City Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018 (continued)

Notes: Infrastructure asset condition assessment ‘key’

(1) Cost to bring up to 'satisfactory standard' refers to the estimated cost to replace the calculated percentage of each asset type that are below satisfactory. Satisfactory standard is generally defined as condition 2 (see Asset Condition Definitions). As identified through Council's Securing our Future community engagement, for footpaths and shared paths, this is condition 3. Cost estimates are based on adopted valuation methodologies and do not generally include the cost of enhancements/upgrades to existing assets. The nominated percentage of each asset type below satisfactory standard is detailed under Condition of Public Works in the Annual Report.

(2) Required Annual Maintenance is the amount that should be spent to maintain assets in a satisfactory standard and to ensure that the estimated remaining life of the asset is achieved PLUS the new requirement to include the "operating expenses required to keep the asset in a funcitional state for community use'. During the 2016/17 financial year this process was completely reviewed to ensure inclusion o all labour and materials on all 'asset operaton' tasks.

(3) Current Annual Maintenance is the total expenditure incurred during the year to maintain assets. It also includes the actual expenditure on operational costs to keep the asset in a functional state for community use, which includes costs such as mowing, painting, lighting, cleaning, enery supply etc. It does not include operational overheads (eg. administration staff) or capital expenditure.

(4) Cost to bring to agreed service level is defined as "The proportion of the GRC that have reached the intervention level based on condition." The outstanding renewal works compared to the total replacement cost of Council assets. That is calculated as the cost of bringng condition 4 and 5 assets to condition 1.

(5) Below is a summary of asset types included in Asset Class:

Buildings: Community Facilities, Cultural Facilities, Childcare Centres, Public Toilets, Exeloos, Grandstands, Surf Life Savings Clubs, Amenities, Office/Shops, Industrial, Residences, Cabins and Leisure Centres Roads and Road Related Assets: Road seal, base, sub-base, kerb and gutter, guardrails and traffic facilities (roundabouts, speedhumps, medians, etc) Bridge, Boardwalks and Jetties: Road Bridges, Pedestrian Bridges, Boardwalks and Jetties Footpaths and Cycleways: Footpaths and cycleways (excluding off road footpaths in parks) Car parks: Surface car parks (not multi-storey) and Boat ramps Stormwater: Pits, Pipes, Headwalls, Culverts and Riparian Assets Recreation: Pools, Playgrounds, Sport Courts, Park Furniture, Picnic Shelters and Landscaping. Does not include non-depreciable land and earthworks

page 7 Special Schedules 2018 Wollongong City Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018 (continued)

Condition of Public Assets

In assessing the condition of Public Assrts, Council has considered the existing condition and function of each asset. The results shown for the conidtion of assets within each category are an average. Therefore, a proportion of assets in each category are above and below the average result. Council recognise that the ratings scale used (as outlined below) may be different from those used by other Councils, but has been based on the rating scale in the International Infrastructure Management Manual.

Asset Condition Definition #

Rating Status 1 As New 2 Good 3 Fair 4 Poor 5 To be replaced

page 8 Special Schedules 2018

Wollongong City Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2018

Amounts Indicator Prior periods Benchmark $ ’000 2018 2018 2017 2016

Infrastructure asset performance indicators * consolidated

1. Buildings and infrastructure renewals ratio (1) Asset renewals (2) 53,906 104.26% 104.90% 92.20% >= 100% Depreciation, amortisation and impairment 51,703

2. Infrastructure backlog ratio (1) Estimated cost to bring assets to a satisfactory standard 89,864 5.50% 5.72% 5.90% < 2.00% Net carrying amount of infrastructure assets 1,632,830

3. Asset maintenance ratio Actual asset maintenance 67,951 98.54% 98.07% 97.40% > 100% Required asset maintenance 68,961

4. Cost to bring assets to agreed service level Estimated cost to bring assets to an agreed service level set by Council 121,129 3.47% 3.68% 4.24% Gross replacement cost 3,489,188

Notes * All asset performance indicators are calculated using the asset classes identified in the previous table.

(1) Excludes Work In Progress (WIP)

(2) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent

capacity/performance as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

page 9 Special Schedules 2018

Wollongong City Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2018

Commentary on 2017/18 result 1. Buildings and infrastructure renewals Purpose of asset ratio 120% renewals ratio 2017/18 Ratio 104.26% 100% Capital renewal is calculated at an 80% To assess the rate at individual capital project level, providing a 60% which these assets 105% 104% high degree of confidence in the renewal Ratio % 91% 92% are being renewed 40% result. The ratio has increased above relative to the rate at 20% which they are 100%. This is ideal and represents Councils allocations of rates specifically for 0% depreciating. asset renewal. 2015 2016 2017 2018

Benchmark: ――― Minimum >=100.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Commentary on 2017/18 result 2. Infrastructure backlog ratio Purpose of infrastructure 7.0% 2017/18 Ratio 5.50% backlog ratio 6.0% The cost to bring to satisfactory is defined 5.0% This ratio shows as the cost difference of the written down 4.0% what proportion the value of the assets in condition 4 and 5, to 3.0% 6.2% 5.9% 5.7% Ratio % 5.5% backlog is against their wrtitten down value at condition 2, with 2.0% the total value the exception of path assets to condition 3. 1.0% of a Council’s Councils 'Securing our Future' financial 0.0% infrastructure. review confirmed condition 3 for paths 2015 2016 2017 2018 through public consultation.

Benchmark: ――― Maximum <2.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Commentary on 2017/18 result 3. Asset maintenance ratio Purpose of asset 120% maintenance ratio 2017/18 Ratio 98.54% 100% Compares actual vs. As at 2015/16 the ratio now requires the 80% required annual asset inclusion of '..operating expenses required 60% maintenance. A ratio to keep the asset in a functional state for

Ratio % 98% 97% 98% 99% above 100% indicates community use..'. Council has reviewed 40% Council is investing 500 cost centres and all supporting natural 20% enough funds to stop accounts to improve the detail of this result. the infrastructure 0% Operational required costs have been set backlog growing. 2015 2016 2017 2018 to equal the operational actual cost.

Benchmark: ――― Minimum >100.00% Ratio achieves benchmark Source for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Commentary on 2017/18 result 4. Cost to bring assets to agreed service Purpose of agreed level 6.00% service level ratio 2017/18 Ratio 3.47%

5.00% This ratio provides a 4.00% snapshot of the This ratio is the sum of the outstanding proportion of renewal works compared to the total 3.00% outstanding renewal

Ratio % 4.80% replacement cost of infrastructure assets. 2.00% 4.24% works compared to 3.68% 3.47% the total value of That is, the cost to renew assets in 1.00% assets under condition 4 and 5 as a proportion of the 0.00% Council's care and Gross Replacement Cost. 2015 2016 2017 2018 stewardship.

page 10

Requirements as per Act (section 428) Wollongong City Council 2017-18 Annual Report was produced to comply with the Local Government Act 1993 (section 428) and the Local Government (General) Regulation 2005 (clauses 132, 217 and 224). The following information is a requirement under the Act to include in a council’s annual report.

Special Variation of Rating Income Local Government (General) Regulation S508(2) s508(a)

The tables below outline how the total amount of the rating increase has been allocated and expended during the 2017- 18 financial year, in accordance with Council’s financial sustainability program.

Capital Program Related to Special Rate Variation (SRV) 30 June 2018 SRV Renewal Program Base Allocation of Base + SRV Total renewal Difference of Revenue SRV revenue actuals expenditure expenditure to Base + SRV of revenue funding $ $ $ $ $ Public Transport -Bus Shelters 100,000 95,000 195,000 360,597 -24,403 Roadworks - Road Resurfacing 1,000,000 1,905,000 2,905,000 4,433,868 1,403,868 Roadworks - Road Reconstruction 4,040,000 4,390,000 8,430,000 8,704,053 -1,405,947 Bridges, Boardwalks and Jetties 820,000 476,000 1,296,000 2,150,948 854,948 Footpaths 1,405,000 4,286,000 5,691,000 5,708,823 -62,177 Cycle/Shared Paths 700,000 857,000 1,557,000 7,954,884 5,847,884 Car parks 840,000 238,000 1,078,000 2,183,488 1,032,762 Community Buildings 7,337,590 5,429,000 12,766,590 10,225,753 -3,221,216 Public Facilities (Shelters, Toilets 260,000 305,000 565,000 600,620 35,620 etc.) Crematoriums/Cemetery Facilities 160,000 48,000 208,000 231,871 23,871 Play Facilities 690,000 514,000 1,204,000 1,462,703 112,712 Recreation Facilities 841,280 457,000 1,298,280 40,075 -1,258,205 Sporting Facilities 418,000 333,000 751,000 600,928 -150,072 Aquatic Facilities (Pools etc.) 2,033,600 667,000 2,700,600 2,074,905 -799,499

TOTAL 20,645,470 20,000,000 40,645,470 46,733,517 2,390,147

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 1 | Page The following table provides a comparison of forecast operating result contained in the submission for the special Rate Variation (SRV) that was approved by Independent Pricing and Regulatory Tribunal (IPART) in June 2014 with the actual result for the year ending 30 June 2018.

Operating Statement Comparison of Special Rate Variation Forecast and Actual 2017-18 30 June 2018 SRV Actual Variation $’000 $’000 $’000 Total Revenue 283,219 314,776 31,557 Total Expenses 274,270 266,010 8,260 Operating results including capital grants and 8,949 48,766 23,297 contributions

Major Variations $M Revenue Variation Assets contributed to Council by external parties largely associated with West Dapto 18.3 subdivision Capital grants received for projects mainly associated with West Dapto Access Strategy 12.8 projects Timing of developer contributions 2.3 Additional specific purpose operating grants mainly for community transport and 1.6 environmental programs Improved revenue trends at tourist parks 1.3 Interest on investments 0.9 Share in joint venture 0.8 Development and approval income reflecting economic environment 0.6 Waste Facility and Domestic Waste Management income partly due to lower operating costs (7.5) and abolition of carbon tax Expense Variation Waste facility operating costs including EPA levy and carbon tax repeal 12.1 Utility costs 2.4 Depreciation expenses 4.3 Legal and insurance costs 1.6 Loss on disposal of assets (3.9) Processing of waste materials (2.8) Change in time of local government elections (1.0) Other including additional funded and specific projects (4.0) Total variation for year ending 30 June 2018 39.8

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 2 | Page Senior Managers Remuneration As determined by a resolution of Council in July 2017, the General Manager, four directors and 13 senior managers are defined as senior staff under the Local Government Act (sec 332). The remuneration packages of senior staff include the: . total value of the salary component of the package . total amount payable by Council by way of the employer contribution or salary sacrifice to any superannuation scheme to which the manager may be a contributor . total value of any non-cash benefits for which the manager may elect under the package . total amount payable by Council by way of fringe benefits tax for any such non-cash benefits, and . total amount of any bonus, performance or other payments that do not form part of the salary package.

Position Period Total Value

$

General Manager 1-7-17 to 30-6-18 401,044

Directors (4) Community Services 1-7-17 to 30-6-18 948,972 Corporate Services Infrastructure + Works Planning + Environment Senior Managers (13) Manager Property + Recreation; Manager City Works; Manager Infrastructure, Strategy + Planning; Manager Project Delivery; Manager Library + Community Services; Manager Governance + Information; Manager Finance; Manager Community, Cultural + 1-7-17 to 30-6-18 2,410,836 Economic Development; Manager Human Resources ; Manager Environmental Strategy + Planning; Manager Development Assessment and Certification; Manager Regulation + Enforcement; General Counsel.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 3 | Page Contracts Awarded In accordance with Section 428(2)(h) of the Local Government Act 1993 the following is a list of contracts equal to or greater than $150,000 awarded during the period 1 July 2017 to 30 June 2018 (whether as a result of tender or otherwise):

Tender Name of Contractor Contract Description Contract Amount No. (Excluding GST) $ T17/01 Kenpass Pty Ltd Refurbishment of Road Bridge on Berkeley 661,132 Road, Unanderra T17/08 • Cleary Bros (Bombo) Pty Ltd Supply and Delivery of Pre-Mixed Concrete 4,500,000 • Hansen Construction Materials • Hy-Tech Industries Pty Ltd • Boral Resources • Baines Transport T17/09 OTIS Elevator Lift Upgrades at Wollongong City Art Gallery 226,600 T17/10 • Ecohart Pty Ltd Natural Area Restoration and Bushfire Hazard 5,500,000 • Good Bush Pty Ltd Reduction Works • Southern Habitat (NSW) Pty Ltd • Illawarra Local Aboriginal Land Council • Midges Bushland Restoration • Tooliijooa Pty Ltd • Illawarra Bushland Restoration • Commelina Bushworks • Bowantz Bushfire and Environmental Pty Ltd T17/12 Batmac Constructions Pty Ltd Windang Tourist Park Amenities 625,343 Refurbishment – Southern Block T17/16 Batmac Constructions Pty Ltd Mt Keira Summit Works – Stage 2 642,267 T17/19 Batmac Constructions Pty Ltd Fernhill Soccer Club Amenities 543,028 T17/20 Van Mal Group Pty Ltd Dapto Memorial Swimming Pool Roof and Ceiling 455,213 Replacement T17/23 Broad Area Mowing consisting of: Open Space Maintenance 150,000 • Skyline Landscape Services Pty Ltd • Illawarra Grounds and Surrounds • Prime Facility and Asset Management Pty Ltd • Asplundh Tree Expert (Australia) Pty Ltd trading as Summit Open Space Services • Waratah Lawncare and Garden Management Small Parks consisting of: • Skyline Landscape Services Pty Ltd • Programmed Property Services • Illawarra Grounds and Surrounds • Prime Facility and Asset Management Pty Ltd • Nat’s Neat Cuts Pty Ltd Maintenance Crew consisting of: • Skyline Landscape Services Pty Ltd • Programmed Property Services • Illawarra Grounds and Surrounds • Prime Facility and Asset Management Pty Ltd • Nat’s Neat Cuts Pty Ltd T17/27 T & C Services Pty Ltd Unanderra Pool Solar Panel 159,000 ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 4 | Page Tender Name of Contractor Contract Description Contract Amount No. (Excluding GST) $ T17/30 Infrastructure Management Group Pty Roads and Footpaths Video and Condition 176,138 Ltd Assessment T17/32 Water Research Laboratory (WRL) Lake Illawarra Entrance Channel Management 262,675 T17/35 Project Coordination Stanwell Park Café Redevelopment 1,419,396 T17/36 SRG Structural Systems Pty Yallah Bay Road Bridge 1 Cathodic Protection 578,552 T17/38 GT Civil Pty Ltd Brokers Road Dam Rehabilitation 190,586 T17/41 The Flagstaff Group Tourist Park Linen Services 470,331 T17/42 Batmac Constructions Pty Ltd Cringila Community Hall (Large) 618,979 Refurbishment T17/44 Batmac Constructions Pty Ltd Coniston Community Centre Refurbishment 499,296 T17/45 Abergeldie Contractors Pty Ltd Fowlers Road to Fairwater Drive – Stage 1C 2,691.465 and 1D – Electrical Services Relocation T17/48 Specialised Geo Pty Ltd Harry Graham Drive Embankment Stabilisation 422,072 T17/50 Panel Administration of Project Management 1,500,000 Services Panel – PMS T17/55 Kenpass Pty ltd O’Brien’s Road Pedestrian Bridge Replacement 438,225 T17/57 Batmac Constructions Pty Ltd Ensuite Blocks and onsite Astroturf Annex 276,700 Sites at Windang Beach Tourist Park – Construct, Supply, Deliver and Install T17/58 Peloton Construction Pty Ltd Austinmer Boatshed Extension Project 513,904 T18/01 JRW Trading Pty Ltd King George V Park Sports Field Lighting 273,024 T18/02 Growth Civil Landscapes Pty Ltd Belmore Basin Embankment Reinstatement 350,367 T18/03 Dynamic Civil Pty Ltd Wombarra Rock Pool Retaining Wall and Shell 1,019,642 Works T18/04 Dynamic Civil Pty Ltd Coalcliff Beach Revetment Works 923,672 T18/06 Batmac Constructions Pty Ltd Refurbishment of Office/Amenities at Western 820,644 Suburbs Pool T18/07 Programmed Property Services Pty Ltd City Wide Park Furniture Painting 297,164 T18/10 Twin Connect Pty Ltd Kanahooka Road and Brownsville Avenue 235,010 Traffic Signal T18/13 Project Coordination Pty Ltd Wombarra Pre School Refurbishment and 879,090 Retaining Wall T18/19 Specialised Geo Pty Ltd Harry Graham Drive Embankment Stabilisation 476,417 – Stage 2 (Site 1) T18/23 New England Constructions Pty Ltd Helensburgh Rugby League Football Club 240,209 Refurbishment T18/26 Glennos Constructions Pty Ltd Wongawilli Road – DN250 Water Pipe 294,700 Installation E4858 Fuji Xerox Business Centre Illawarra Supply and Maintenance of Production Colour 343,193 Printer for WCC Printing Department E5074 Bibliothece Pty Ltd Wollongong City Libraries RFID Self-Check 211,702 Units ISJO Flick Anticimex Pty Ltd Sanitary and Nappy Disposal and Cleaning 152,165 05/16 Services E4975 T & C Services Pty Ltd Western Suburbs Pool Solar Panel Installation 159,175 E5022 Stowe Australia Bulli and Corrimal Beach Tourist Parks 162,752 Lighting Upgrade E5021 Batmac Constructions Pty Ltd Civil Works/Services at Bulli Beach Tourist 163,100 Park in preparation for Installation of Cabins E5037 Clinton’s Toyota Purchase of two Buses – 22 seat Community 231,999 Transport E5137 Hitachi Construction Machinery Supply of three Hydraulic Crawler Excavators 266,150 E5115 Programmed Building Projects IPAC Column External Repair and Painting 406,914

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 5 | Page Controlled Entities There are no controlled entities in the financial statements for 2017-18.

Council has significant influence over the following entities but do not consolidate due to their immaterial value and nature. • Illawarra Performing Arts Centre Limited • Wollongong City of Innovation Limited (trading as Destination Wollongong)

Partnerships, Cooperatives or Joint Ventures Wollongong City Council is in a joint venture with CivicRisk West and CivicRisk Mutual, whose principal activities are insurance.

Financial Assistance to Persons for Council Functions Contributions made by Council under Section 356 of the Local Government Act, 1993 in 2017-18 include:

Name of Contractor $

Community Events and Activities 109,459 Arts and Cultural Activities 71,445 Educational and Environmental Activities 20,095 Sporting Activities 93,526 Heritage Grants 37,500 Total 332,025

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 6 | Page National Competition Policy Council has adopted the principle of ‘competitive neutrality’ to its business activities as part of the national competition policy which is being applied throughout Australia at all levels of government. The framework for its application is set out in the June 1996 Government Policy statement on the Application of National Competition Policy to Local Government. The Pricing and Costing for Council Businesses ‘A Guide to Competitive Neutrality’ issued by the Division of Local Government in July 1997 has also been adopted. The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standard of disclosure requirements. These disclosures are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents; Council subsidies; return on investments (rate of return); and dividends paid.

DECLARED BUSINESS ACTIVITIES In accordance with Pricing and Costing for Council Businesses ‘A Guide to Competitive Neutrality’ Council has declared that the following are to be considered as business activities: CATEGORY 1 (where gross operating turnover is over $2 million): a. Waste Disposal - Manages the disposal of solid waste generated within the city. b. Tourist Parks - Operation, management and development of tourist parks at Bulli, Corrimal and Windang. c. Health and Fitness - Responsible for the management and upkeep of Council’s leisure centres. d. Crematorium and Cemeteries - Provision of quality crematorium, cemetery and memorial facilities and services.

COMPETITIVE NEUTRALITY COMPLAINTS Underpinning competitive neutrality is the need to properly recognise the full costs of Council’s business activities. This allows comparisons to be made with competitors in the same marketplace and provides information that will allow Council to determine pricing policies for each business. Wollongong City Council has a process distributing indirect costs and overheads attributable to the declared business activities which are shown in the Special Purpose Financial Reports.

Rates and Charges Written Off

$

Postponed Rates 33,825 Postponed Interest 51,667 Council Voluntary Pension Rebate 409,984 Rates written off due to Crown Lease cancelled 35,350 Total 530,826

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 7 | Page Companion Animal Management Council has lodged the annual Pound Data Collection Returns with the Office of Local Government for the 2017-18 year. Information regarding dog attacks that have occurred throughout the city has also been lodged with the Office of Local Government for the year. These returns provided the following information: . There were 161 dog attacks within the Wollongong City Local Government Area during the 2017-18 year. . Council seized 415 companion animals during the 2017-18 year. . Council returned 78 companion animals to their owners, the remaining 337 were impounded. Council undertakes its impounding activities in accordance with Deed of Agreement with the RSPCA, through their facility at Industrial Road, Unanderra. This partnership provides improved opportunities for the re-homing of companion animals with Council and the RSPCA working together to achieve this. Council also has a “Hardship Policy” that is currently being reviewed. This policy provides opportunities to arrange payment options for owners who may be experiencing financial difficulty to have their animals released and taken home. Throughout the 2017-18 year, Council invested $1,375,455 on companion animal management and activities with all the companion animal registration income returned from the Office of Local Government’s Companion Animal Fund being invested back into companion animal management and activities. Community education programs conducted this year included partnering with the RSPCA to conduct a free microchipping day. This event provided Council an opportunity to distribute information to the community regarding responsible pet ownership, including the importance of de-sexing, identifying and registering dogs and cats. Council also participated in the “Aussie Dog Show” that was held as part of Australia Day celebrations. This event also provided Council the opportunity to remind companion animal owners of the importance of responsible pet ownership and to distribute information on how to achieve this. Website information including registration and identification requirements was reviewed and updated to ensure that information provided is contemporary and accurate. Council’s Foreshore Rangers continued to operate Friday to Sunday with an emphasis on education in relation to Council’s Dogs on Beaches & Parks Policy, with particular attention to the foreshore areas of the City. In May 2018 Council’s Animal Control & Foreshore Rangers conducted a beach patrol education program. This program was focused on community education and engagement and was conducted on the northern beaches of the City from Woonona to Stanwell Park. The review of Council’s Dogs on Beaches & Parks Policy also commenced in the second half of the 2017-18 year with an audit of current signage and access points one of the first activities being undertaken. The review of this policy will continue into the 2018-19 year including investigations into establishing other reserve / park based leash free declared areas. The current list of declared off-leash beaches are: . Perkins Beach, Windang (extending from Shellharbour Road/Wattle Street beach walkway north to access way south of Port Kembla Surf Life Saving Club southern car park; . MM Beach, Port Kembla; . Coniston Beach, Coniston south of Bank Street; . Beach area directly east of Puckey’s Estate, Fairy Meadow ie walkway north of Fairy Creek lagoon to walkway south of playground at Fairy Meadow Beach; . East Corrimal Beach (from northern side of Bellambi Lagoon to Bellambi Point); . Bellambi between Bellambi ramp and ocean pool; . McCauley’s Beach, Bulli/Thirroul; . Little Austinmer Beach, Austinmer; . Sharkey’s Beach, Coledale (from the car park, south toward the rock outcrop); . Stanwell Park Beach, north of northern lagoon.

In addition, Council also has a number of leash free areas declared in parks and reserves: . Figtree Oval, Figtree; . Proud Park, Helensburgh; . Riley Park, Unanderra; . Eleebana Reserve, Koonawarra; and . King George V Park, Port Kembla.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 8 | Page Environmental Planning and Assessment Act 1979 Section 7.5(5) Planning Agreements

Particulars of compliance with and the effect of planning agreements in force during the year.

Agreement Description Property Description Agreement Particulars of compliance Date with and effect of Brooks Reach Subdivision Lot 601 DP 1054648, Lot 60 6/05/2011 This Planning Agreement Monetary contributions, DP 1063539, Lot 1 DP 549692 (Amended was finalised during the land dedication and onsite & Lot 62 DP 751278 Bong 26/10/2012 period through the works. Bong Road, HORSLEY and payment of a monetary 12/5/2017) contribution and the provision of on-site works. Vista Park Subdivision Lots 1, 2, 5 and 6 DP 1169628, 25/07/2013 Monetary contributions in Monetary contributions, Lot 4 DP 1178706, Lot 2 DP accordance with the land dedication and onsite 1175865, known as 60 Smiths schedule in the works. Lane, WONGAWILLI agreement. Alkira Estate, Horsley Lots 3, 5, 6 and 9 in DP 33650, 8/09/2015 No effect this period. Monetary contributions, Lot N in DP 103642 and Lot 4 land dedication and onsite in DP 661032 otherwise works. known as 80, 88, 94, 104 Shone Avenue and Lot 9 Iredell Road, Horsley. Calderwood Lot 2 DP 2534, Lots 1-4 and 8 13/12/17 The agreement was Monetary contributions of 6 DP 259137, Lot 112 DP entered into during the staged payments toward 851153, Lots 21,22 and 23 DP period. the construction of 1224293, Lots 21 and 22 DP Marshall Mount Road, 809156, Lot 1 DP195342, Lot Yallah Road and new road 1 DP 558196, Lot 10 DP NR1-NR3 619547, Lot 42 DP 878122, Lots 1101-1175, 1177 and 1182 DP 1202087, Lots 1201, 1222-1225, 1227, 1233 and 1234 DP 1206166, Lots 1301- 1377, 1379-1380 and 1382- 1383 DP 1206167, Lots 1401- 1450 DP 1206168, Lot 2 DP 158988, Lot 1 and Lot 2 DP 608238, Lot 1 DP 1044038, Lot 1 DP 998349.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 9 | Page Swimming Pool Inspections In accordance with Clause 18BC of the Swimming Pool Regulations 2008, Councils are required to include in their annual report the number of inspections performed and the resultant number of certificates of compliance and certificates of non-compliance issued.

Inspections of pool barriers located at Tourist and visitor accommodation 20 Inspections of pool barriers upon premises with 2 or more dwellings 0 Total number of compliance certificates issued 78 Total number of non-compliance certificates issued 73

Environmental Upgrade Agreements (Section 54p) Particulars of any environmental upgrade agreement entered into, in accordance with any requirements imposed under s406

Nil. This is not a service offered by WCC.

Stormwater Management Services STORMWATER MANAGEMENT CHARGE Management of stormwater in Wollongong is challenging due to the large number of creeks and estuaries as well as the proximity of the escarpment to the coast which results in rapid stormwater surface flows during rainfall events. This presents particular challenges for managing the planning and development of the city’s stormwater drainage network in such a way to balance the sometimes competing demands for new land for development, increased stormwater run-off that accompanies new development, protection of private and public assets from floods and protection of the natural environment. The Stormwater Management Service Charge was introduced in 2006-07, following changes to the Local Government Act, to help fund the stormwater infrastructure and management costs borne by councils. The legislation allowed a flat fee of $12.50/$25.00 to be applied to each unit and townhouse/individual household and a pro rata fee for each business premises. The charge enables a significant increase in the works program for renewal of our ageing stormwater infrastructure, along with construction of new stormwater infrastructure with a focus on urban flooding and stormwater quality improvement works. The City has an Integrated Stormwater Management Plan that incorporates the three stormwater management plans, including some overlap into the Shellharbour LGA, that provide a strategic approach to stormwater management. The plans, along with the Stormwater Asset Management Plan, catchment specific Floodplain Risk Management Plans, Illawarra Biodiversity Strategy and estuary management plans, inform future capital, maintenance and operational works programs to continue to build the capacity and reliability of the city’s stormwater infrastructure to manage both the quantity and quality of stormwater run-off. Some tasks and projects identified in these programs are funded, or part funded, by the Stormwater Management Service Charge. Projected Versus Actual Expenditure on Stormwater Infrastructure Stormwater Management Service Expenditure Funding * $’000 $’000 Planned - Annual Plan 2017-18 6,961 1,700 Actual costs 2017-18 6,681 1,817 Difference 280 (117) * Stormwater Management Service Charge revenue

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 10 | Page ALLOCATION OF STORMWATER MANAGEMENT SERVICE CHARGE FUNDS Income from the Stormwater Management Service Charge is allocated across five categories as follows: Category Planned Final Reasons for change Expenditure Expenditure 2017-18 2017-18 $ $ Stormwater Quality Projects were progressed from other Management 106,000 10,000 funding sources Stormwater and Watercourse Quality Management 767,853 767,853 Stormwater Infrastructure Projects were progressed from other Restoration and Replacement 530,000 120,234 funding sources Stormwater Operational Additional planned maintenance Management 82,624 529,291 were carried out Stormwater Asset Management Delivery cost of the planned System program was lower than initial 225,000 221,644 estimates Floodplain Structures 325,004 325,004 Total 2,036,481 1,974,026

STORMWATER MANAGEMENT SERVICE CHARGE FUNDED WORKS Stormwater Quantity Management Construction of new or enhanced stormwater drainage services to address current needs

Project Location Work Description Funding $ Springhill Road, Water Quality Device Debris control structure (design) 10,000 Total 10,000

Stormwater and Watercourse Quality Management Construction or renewal of infrastructure for debris and/or pollution control; and creek bank clearing and revegetation with appropriate native species to maintain or improve stormwater flows, improve natural pollution control including siltation reduction and weed propagation as well as reducing flood risks.

Project Location Work Description Funding $ Stormwater - Weed Tree Removal Weed removal and replanting with native species 38,319 Bellambi Creek Weed removal and replanting with native species 35,500 Collins Creek Weed removal and replanting with native species 21,000 Edgewood Estate Weed removal and replanting with native species 10,500 Hargraves Creek Weed removal and replanting with native species 7,500 Towradgi Creek East Weed removal and replanting with native species 24,236 Towradgi Creek West Weed removal and replanting with native species 26,500 Whartons Creek Weed removal and replanting with native species 15,000 Slacky Creek Weed removal and replanting with native species 18,000 Tramway Creek Weed removal and replanting with native species 1,000 Camp Creek Weed removal and replanting with native species 7,000 Cabbage Tree Creek West Weed removal and replanting with native species 47,500 Cabbage Tree Creek Guest Park Weed removal and replanting with native species 20,000 Cabbage Tree Creek East Weed removal and replanting with native species 20,340 Anthropegenic Creeks Weed removal and replanting with native species 28,868 Fairy Creek Catchment Weed removal and replanting with native species 37,486 Byarong Creek Weed removal and replanting with native species 20,000 Branch Creek/Brandy & Water Creek Weed removal and replanting with native species 35,500 American Creek Weed removal and replanting with native species 26,500 Budgong Creek Weed removal and replanting with native species 33,104 Minegang Creek Weed removal and replanting with native species 40,000 ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 11 | Page

Project Location Work Description Funding $ Brooks Creek Weed removal and replanting with native species 60,000 Allans Creek- Surrounds Weed removal and replanting with native species 35,000 Harbour Creek Weed removal and replanting with native species 10,000 Lake Projects East Weed removal and replanting with native species 10,000 Mullet Creek West Weed removal and replanting with native species 45,000 Mullet Creek South Weed removal and replanting with native species 14,000 Mullet Creek North Weed removal and replanting with native species 10,000 Allans Creek - Charcoal Weed removal and replanting with native species 50,000 Gurungaty Waterway Weed removal and replanting with native species 20,000 Total 767,853

Stormwater Infrastructure Restoration and Replacement The replacement and/or upgrading of existing stormwater drainage assets due the condition of the asset or to address current needs.

Project Location Work Description Funding $ Buttenshaw Drive, pipe Construction 35,000 Minor Drainage Central - stormwater Construction 4.994 drainage Cnr Lawrence & Carrington St - outlet Construction 15,000 structure Gunyah Park Dam - Prescribed dam Design 12,237 Rehabilitation 9 Toorak Ave, pipe reline Construction 23,003 Vale St & Gladstone Ave, additional pits & Construction 30,000 pipes Total 120,234

Stormwater Operational Management Planning and undertaking operational activities including cleaning of debris and pollution control assets

Project Location Work Description Funding $ Citywide Cleaning and removing of debris from stormwater pollution 529,291 control and stormwater drainage infrastructure Total 529,291

Stormwater Asset Management System Collection of asset management data on the stormwater drainage network, the urban drainage (pits and pipes), creeks/waterways, flood attenuation and management structures and pollution/debris control structures. This information is used to refine and update the asset management plan including maintenance, capital renewal and augmentation programs.

Project Location Work Description Funding $ Citywide Programmed inspections of stormwater assets, develop 221,644 maintenance and capital renewal programs Total 221,644

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 12 | Page Condition of Public Works Financial information on the condition of public works is reported in the General Purpose Financial Statements through Note 9a - Infrastructure, Property, Plant and Equipment, Note 27 - Fair Value Measurement; and Special Schedule No. 7 - Report on Infrastructure Assets.

Work Carried Out On Private Land (Section 67(3)) Throughout the year, Council did not complete any works on private lands applicable under Sect 67 of the Local Government Act 1993.

Public Interest Disclosures (PID) Public authorities are required to report annually to Parliament on their obligations under the Public Interest Disclosures Act 1994 (Section 31). The Public Interest Disclosures Act 1994 (PID Act) sets in place a system to encourage public officials to report serious wrongdoing. The conditions around this reporting are set out in Council’s Internal Reporting Policy.

Public Interest Disclosures received and investigated by Council during 2017-18 include: Number of public officials who made PIDs 3 Number of PIDs received 3 Corrupt Conduct 3 Number of PIDs finalised 2 Note: The number of PIDs finalised only refers to PIDs that have been received since 1 July 2016.

During the reporting period, Council undertook the following actions to meet its staff awareness obligations: . Policy briefing to senior managers . Staff undertaking that they have read and understood Council’s Code of Conduct and reporting procedures . Refresher training provided by the organisation . Reminder messages shared through the Hub and Team Brief . Awareness raising posters in all locations of Council.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 13 | Page Government Information (Public Access) Act 2009 The Government Information (Public Access) Act was introduced 1 July 2010 and facilitates access to information that Council holds in the following ways: Mandatory release of information via Council’s website (Open access), authorised proactive release via Council’s website, informal release subject to an informal access application and release subject to a formal access application. Any person who wishes to obtain access to information held by Council is encouraged to contact our public officer for assistance. There are a number of open access documents available including Wollongong 2022 Community Strategic Plan, management plans, annual reports, annual budgets, plans and policies, meeting agendas and minutes and graffiti and land registers. These, and other documents, are easily accessed via our website. The following table specifies the number of Formal Access Applications lodged under the Government Information (Public Access) Act 2009 received during the 2017-18 period. Statutory processing times were complied with in all cases.

Month Number of Were applications processed within the statutory Applications Received timeframe of 20 working days July 3 Yes August 5 Yes September 3 Yes October 3 Yes November 6 Yes December 1 Yes January 4 Yes February 0 Yes March 4 Yes April 4 Yes May 2 Yes June 4 Yes

Where a formal access application is received, and it is likely to be of interest to members of the public, Council may make the details available by publishing the content to its disclosure log. The disclosure log contains non-personal information only and can be viewed on Council’s website via the following link – http://www.wollongong.nsw.gov.au/council/gipa/Pages/DisclosureLog.aspx

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 14 | Page Summary of Legal Proceedings Particulars Finalised Expenses Receipts Including Excluding GST GST $ $ Liability Litigation Against Council Commercial Litigation No 59,657 Personal Injury Yes 115,624 0 Personal Injury No 83,760 0 Professional Indemnity Yes 0 0 Professional Indemnity No 0 0 Council Initiated Litigation Unauthorised Structures and Use Yes 15,294 10,000 Unauthorised Structures and Use No 11,437 Swimming Pool Litigation Yes 1,818 1,818 General Prosecutions Yes 7,454 Planning Appeals Against Council Refusal of Development Applications Yes 86,358 9,544 Refusal of Development Applications No 182,751 31,854 Challenges to Consents Yes 12,500

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 15 | Page External Bodies That Exercise Functions Delegated By Council During 2017-18 the following external bodies exercised functions delegated by Council under Section 355 of the Local Government Act, 1993.

Body Function PLANNING + ENVIRONMENT Alanson Avenue Fiready APZ maintenance Allen Park Bushcare Riparian restoration Alvan Parade Bushcare Bushland restoration Balmer Crescent Fiready APZ maintenance Bellambi Dune Bushcare Dune/lagoon restoration Blue Divers Bushcare Riparian restoration Blue Lagoon Bushcare Coastal/riparian restoration Brickyard Point Bushcare Coastal headland restoration Brooks Creek Upper Riparian restoration Budjong Creek Landcare Riparian restoration Buttenshaw Place Bushcare Bushland restoration Byarong Creek (Figtree) Bushcare Riparian restoration Byarong Creek (Mt Keira) Bushcare Riparian restoration Carrington Road Bushcare Woodland restoration City Beach Dunecare Dune restoration Coachwood Park Bushcare Riparian restoration Coalcliff FiReady APZ maintenance Coledale Bushcare Sea cliff restoration Compton St FiReady APZ maintenance Emperor Court Bushcare Bushland restoration Farmborough Waterfall Bushcare Bushland restoration Figtree Oval Bushcare Riparian restoration Friends of the Botanical Gardens Through active volunteering, the Friends foster community interest in the garden, promote the role of education in the garden, and support the development of the garden by raising funds for specific projects. Garden Avenue Bushcare Riparian restoration Garden Avenue Fiready APZ maintenance Gellatly Bushcare Riparian restoration Greenhouse Park Bushcare Revegetation Helensburgh Bushcare Bushland restoration Hewitts Bushcare Riparian restoration Hewitts Ck (Armagh Pde) FiReady APZ maintenance Hooka Point Bushcare Saltmarsh/riparian restoration John Parker Reserve Riparian restoration Keira Oval Bushcare Riparian restoration Kelvin Road Bushcare Bushland restoration King George V Oval Bushcare Revegetation Kooloobong Park Bushcare Riparian restoration Kulgoa Road Bushcare Riparian Restoration Kurrimul Creek Bushcare Riparian restoration Lower Hill Street Fiready APZ maintenance Mangerton Park Bushcare Dry rainforest Mangerton Park Project Dry rainforest Melaleuca Park Bushcare Bushland restoration Mount Kembla Pathway Project Maintenance of Memorial Track Murray Garden Bushcare Riparian restoration Nyrang Park Bushcare Riparian restoration Odenpa Road Bushcare Bushland restoration Puckeys Estate Bushcare Dune/lagoon restoration Rae Crescent Bushcare Riparian restoration ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 16 | Page Body Function Reed Park Bushcare Bushland Restoration Richardson Park Bushcare Bushland restoration Riveroak Bushcare Bushland restoration Stanwell Park Dunecare Dune restoration Stephen Drive Fiready APZ maintenance Stockyard Slope Riparian restoration Sunninghill Circuit Fiready APZ maintenance Taminga Crescent Bushcare Bushland restoration Tathra Park Bushcare Riparian restoration Throsby Drive Bushcare Bushland restoration Towradgi Dune Bushcare Dune restoration Underwood Bushcare Riparian restoration Upper Hill Street Fiready APZ maintenance Wharton’s Creek Bushcare Riparian restoration Whipbird Reserve Bushcare Bushland restoration William Beach Park Bushcare Riparian restoration Wilson Street Bushcare Sea cliff restoration Windang Dunes North Dunecare Dune restoration Windang Dunes South Dunecare Dune restoration Wisemans Park Bushcare Woodland restoration Wollomai Pt Bushcare Bushland restoration Wollongong Surf Leisure Resort Dunecare Dune restoration Wombarra Creek Bushcare Riparian Restoration Wombarra LHD Dunecare Dune restoration Wombarra Pool Bushland restoration CORPORATE SERVICES Mt Kembla Mining Heritage Inc. Hosting of the 96 Candles Ceremony; Hosting of the WW1 Memorial Planting Ceremony; Operation of the Mt Kembla Heritage Centre. COMMUNITY SERVICES Berkeley Pioneer Cemetery Restoration Group Undertake minor maintenance and works to the grounds and improvements of Berkeley Pioneer Cemetery also utilising private equipment and labour from the Periodical Detention Centre. Bulli Senior Citizens’ Centre To occupy, manage, secure, care take and maintain the premises on behalf of Council. Make the premises available for use by senior groups, community groups and others compatible with guidelines at mutually agreed times. Comic Gong Volunteers To assist to meet and greet visitors, conduct craft activities and surveys. Community Transport Volunteers To transport eligible older people and their carers and people that are transport disadvantaged in their own vehicles or Council’s vehicles. Friends of Scarborough Cemetery Undertake minor maintenance and works to the grounds and improvements of Scarborough cemetery. Home Library Service Volunteers Selection of books on behalf of and delivery to customers’ homes Living Books To be a “ living book” as part of Councils Living Book program which includes sharing their story with young people and members of the Community at Living Book events Social Support Services Volunteers To provide social support in the community for eligible people. To provide respite support for eligible dementia client’s carers by providing entry level care for dementia clients. Surf Life Saving Illawarra To provide lifesaving and rescue services to Council in accordance with the executed service agreement. Viva La Gong Volunteers To assist with set up and running of Viva la Gong Festival Volunteering Illawarra Volunteers Interviewing members of the public interested in volunteering their time in the community. Wollongong Art Gallery Volunteers To fulfil the role of Gallery guides, provide informed talks and facilitate discussion about the exhibitions for both school groups and adult members of the community. Wollongong City Libraries Volunteers Broadly working in libraries to gain skills undertaking administrative and customer service tasks such as IT training and events.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 17 | Page Details of Overseas Visits by Councillors and Council Staff

Kerry Hunt Jason Hall Cr Gordon Bradbery AM Director Community Services Risk and Insurance Team Leader Lord Mayor [Acting] Governance + Information Commonwealth Local Executive Management Division Government Conference (Malta) Community Infrastructure – PRIMA Annual Conference and and Trade opportunities (UK) Research Tour Insurance Pooling Research Tour 21-30 November 2017 Christchurch, New Zealand USA 7-9 November 2017 2-19 June 2018 COSTS Registration 948 COSTS COSTS Accommodation 161 Registration N/A Registration Nil Flights 11,962 Accommodation $336 Accommodation Nil Expenses 877 Flights $548 Flights Nil TOTAL COST 13,948 Expenses $134 Expenses Nil TOTAL COST $1,018 TOTAL COST Nil

Note: Costs met by CivicRisk Mutual of which Council is a member for insurance and risk management purposes.

Greg Doyle Sue Savage Director Infrastructure and Works Community Cultural and Executive Management Development Manager Community Infrastructure – Community Services Department Research Tour 13th International Conference on Christchurch, New Zealand the Arts in Society Research 7-11 November 2017 Network Vancouver, Canada COSTS 26-29 June 2018 Registration N/A Accommodation $1068 COSTS Flights $925 Registration $710 Expenses $545 Accommodation N/A TOTAL COST $2,538 Flights N/A Expenses N/A TOTAL COST $710

Note: S Savage presented a paper at this conference titled ‘Local Government and the Arts: Building Identify through Collaboration with Creative Industries and the Arts’.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 18 | Page Equal Employment Opportunity Management Plan The Employment, Equity and Diversity (EED) Management Plan includes a number of programs addressing targeted groups. Our EED programs have continued to expand, and staff continued to be involved in employment strategy initiatives in the community. During 2017-18, Council undertook the following activities which provided and maintained opportunities for a diverse range of groups:

. Following on from Council's commitment to achieving gender equity, Council’s focus during the year centred on reporting on gender equality pay matters. The Gender Equality Report, as at January 2018 was published on Council’s website. An updated summary of this report is now available in the main body of this annual report (pages 14-15). Results highlight a gender pay gap, based on like for like positions, is 1.03% or $807 p.a in favour of women. This compares to the industry average published by Workplace Gender Equality Agency of 15.3% or $253.70 p.a in favour of men. The Gender Equality Report will be an ongoing feature of Council’s annual report.

. Council reviewed and finalised its Workforce Management Strategy 2018-2022, which expresses an ongoing commitment to strengthening Council’s workplace focus on diversity and inclusiveness through the following strategies; o To move toward representing our community and benefit from greater diversity of experience and thought. o Diversity and inclusion are part of our day to day decisions. o Better reflect the diversity of our community through designated recruitment process and positions.

. Significant improvements were made to Council’s recruitment practices resulting in the streamlining of processes, improved employment screening and a reduction in recruitment campaign periods.

. Recruitment and appointment of a number of women in key leadership roles across the organisation, including achieving an Executive Committee that includes 40% women.

Council is committed to: . Continuing to support the promotion and advocacy of diversity within the workforce. . Implementing an EEO management plan for groups of people who are under-represented in our workforce and provide specific strategies to encourage better representation and participation within work areas, job families and managerial roles where they are underrepresented. These groups include women, Aboriginal and Torres Strait Islander people, young people, people with disability and people from culturally and linguistically diverse backgrounds.

Human Service Agency Wollongong City Council comply with the Carers Recognition Act 2010 (CR Act s8(2)).

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 19 | Page Councillors Attendance at Meetings Council on 14 September 2015 resolved that councillor attendance at Ordinary and Extraordinary Council meetings, Section 355 Committees, as well as Councillor Briefing sessions, be recorded and reported in the annual report. Attendance at Council Meetings and Councillor Briefing Sessions (1 July to 31 July 2017) During the period under review, there were two Council meetings (pre September Election) and one Councillor briefing held (pre September Election).

Councillor Council Meetings Attended Councillor Briefings Attended Lord Mayor, Councillor Gordon Bradbery AM 2 1 Councillor Michelle Blicavs 2 1 Councillor David Brown 2 1 Councillor Chris Connor 2 1 Councillor Leigh Colacino 2 1 Councillor Bede Crasnich 2 0 Councillor Vicki Curran 2 1 Councillor John Dorahy 2 1 Councillor Janice Kershaw 2 1 Councillor Ann Martin 2 1 Councillor Jill Merrin 2 1 Councillor Greg Petty 2 0 Councillor George Takacs 2 1

Attendance at Section 355 Committees

Australia Day Committee Meetings Held Attended Lord Mayor, Councillor Gordon Bradbery AM 2 2 Councillor Chris Connor 2 0

City Centre Major Projects Steering Committee Councillor Members Meetings Held Attended Lord Mayor, Councillor Gordon Bradbery AM 1 0 Councillor Michelle Blicavs 1 1 Councillor David Brown 1 1 Councillor John Dorahy 1 1 Councillor George Takacs 1 1 Attendance at Council Meetings and Councillor Briefing Sessions (September 2017 to 30 June 2018) During the period under review, there were 12 Council meetings (post September Election) and 19 Councillor briefings held (post September Election).

Councillor Council Meetings Attended Councillor Briefings Attended Lord Mayor, Councillor Gordon Bradbery AM 11 18 Councillor Cath Blakey 12 19 Councillor David Brown 12 19 Councillor Tania Brown 12 18 Councillor Chris Connor 8 14 Councillor Leigh Colacino 12 16 Councillor Mithra Cox 12 19 Councillor John Dorahy 9 10 Councillor Dom Figliomeni 11 17 Councillor Janice Kershaw 11 17 Councillor Vicky King 11 15 Councillor Jenelle Rimmer 11 17 Councillor Cameron Walters 12 17

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 20 | Page Attendance at Section 355 Committees (September 2017 to 30 June 2018)

Australia Day Committee Meetings Held Attended Lord Mayor, Councillor Gordon Bradbery AM 7 7 Councillor Chris Connor 7 2

City Centre Major Projects Steering Committee Councillor Members Meetings Held Attended Lord Mayor, Councillor Gordon Bradbery AM 2 2 Councillor David Brown 2 2 Councillor Tania Brown 2 2 Councillor John Dorahy 2 1 Councillor Cath Blakey 2 1

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 21 | Page Report of the Audit Committee Report to Council covering the period July 2017 to June 2018 Membership The Audit Committee of Council (The Committee) comprises five (5) members: three (3) independent members and two (2) Councillor members. They are: Independent members Mr Jim Mitchell FCPA, Chairperson Dr Philip Ross BBus, MCom, PhD, CA Mr Stephen Horne PFIIA, CIA, CGAP, CRMA, MAICD, FGIA Councillor members Councillor Vicky King JP FPA

All independent members have recent and relevant financial experience in addition to extensive experience in corporate governance. Councillor members have appropriate qualifications and experience to allow them to undertake their roles. Responsibilities The Committee has the following responsibilities: Financial Reporting Advise Council whether the financial information reported by management reasonably portrays the Council’s financial position, results of operations and significant commitments. In fulfilling this responsibility throughout the year the Committee have: . Reviewed monthly and quarterly management financial, investment and performance reports. . Reviewed the annual financial statements to ensure completeness, consistency with the Committee’s knowledge of operations and application of accounting policies and principles. . Received briefings on significant accounting and legislative matters with the potential to affect the financial position of Council. Internal and External Audit Oversight the work of both internal audit and external audit. External Audit included that provided by Council's contracted external auditors and more recently the Audit work undertaken by the Audit Office of NSW. In fulfilling this responsibility throughout the year the Committee have: . Reviewed Council’s risk profile developed by the Internal Auditor and subsequently considered, approved and monitored the annual audit plan for internal audit activities. . Ensured that all systems, processes, operations, functions, and activities of the Council were subject to internal audit evaluation at regular intervals based on risk assessment. To assist in this regard the Committee received regular briefings and updates on legislative and operational changes with the potential to affect Council’s risk profile. . Monitored, through the results of internal and external audits, the adequacy and effectiveness of the Council’s internal control structure. . Reviewed internal and external audit reports, the practicality of any recommendations and the adequacy of management responses. The Committee also monitored the implementation by management of recommendations arising from audit reports. . Provided input and feedback on external audit coverage and performance. . Reviewed the Audit Committee and Internal Audit Charters.

Other Responsibilities . The Committee is required, through the Chair, to provide assistance and advice to the Corporate Governance Committee should any matters related to ethics, conflict of interests, misconduct, or fraud come to its attention. . The Committee, during the year, received reports and provided advice to Management and Council on the review of Council’s advisory committee structure. . The Chair of the Committee may provide advice to the General Manager in relation to any matter if requested.

J Mitchell Chairperson Audit Committee 2 July 2018 ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 22 | Page Internal audits undertaken during the period July 2017 to June 2018, which were overseen by and reported to the Committee. 2017-18 Internal Audit Plan

Sponsorships and Grants Policy The overall objective of the internal audit was to consider the effectiveness and Controls of key controls as identified with WCC Management, compliance with current policies and procedures to manage WCC sponsorships and grants, and to identify any improvement opportunities.

Infrastructure and Works The objective of this internal audit was to consider the effectiveness of Project Management Infrastructure and Works Project Management processes and to identify improvement opportunities

The objective of this internal audit was to consider the effectiveness of key controls as identified with Management and compliance with current Rates Revenue policies and procedures relating to rates revenue, and to identify any improvement opportunities.

Inventory Stores The objective of this internal audit was to consider the effectiveness of key controls as identified with Management and compliance with current policies and procedures relating to Inventory Store, and to identify any improvement opportunities.

Payroll Processes and Controls The objective of this internal audit was to consider the effectiveness of key controls as identified with Management and compliance with current policies and procedures relating to payroll processes and controls and to identify any improvement opportunities.

Corporate Governance Health The overall objective of the internal audit was to assess WCC Checklist documentation and processes against the Quarterly Corporate Governance Health Checklists completed. Where relevant, the assessment raised any identified potential enhancements or improvements that could be made to the Checklist and associated methodology.

Follow-up Audit The purpose of each review is to establish and report on the status of actions taken by management to implement agreed internal and external audit and PCC recommendations. This review covered all recommendations noted by management as completed during the audit period.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 23 | Page Report of the Corporate Governance Committee Report to Council covering the period July 2017 to June 2018

Membership The Corporate Governance Committee (The Committee) has five (5) members: three independent members and two Councillors. All independent members have recent and relevant corporate governance experience in addition to relevant industry experience. Councillor members have appropriate qualifications and experience to allow them to undertake their roles. They are: Independent Chairperson: Terry Clout BA (UoW), FAICD, FGCRI, FRMIA, FACHSM, CPRM, JP Independent members: Ross Clifton PhD, MBA, MA, BEd Catherine Hudson BEc, GAICD Councillor members: John Dorahy, GAICD Chris Connor, MEdAdmin, GradDipEdSt (School Admin), DipT, MAICD Responsibilities The role of the Corporate Governance Committee is to serve as an independent and objective party to assist Council in fulfilling its responsibilities in relation to corporate governance, management of its financial affairs, compliance with laws, ethical behaviour, and for risk management. As per the terms of reference, during the reporting period the Committee completed the following activities: 1. Financial Monitoring . Reviewed Council’s financial performance against the Budget as approved by Council, both operating and capital budgets . Reviewed strategies of management to achieve budget balance . Reviewed long term financial strategies developed by management. Note: The Corporate Governance Committee is responsible for examining the appropriate management of the budget. The Audit Committee is responsible for signing off on the financial statements for accuracy. 2. Planning and Performance Monitoring . Monitored the development of the Council’s annual management plan . Reviewed and monitored progress of Council’s strategic plans . Reviewed the Council’s progress against key performance indicators: o Executive key performance indicators o Council trends and statistics including: - Legal matters, including claims - Status of Council resolutions - Active Council tasks register - Internal audit recommendations - Customer relations feedback - TRIM statistics - Work health and safety - Corporate governance health checklist. 3. Risk Management The Committee closely monitored the risk management program to ensure a comprehensive risk management plan is in place and management has a program to manage all significant risks by identification, prioritisation, and implementation of strategies. In particular, the Committee reviewed: . Reports on risk assessments and controls . Risk management policies and procedures . Risk management systems and compliance processes for adequacy. The Committee received presentations in relation to the appropriate management of the following corporate risks: . Compliance with Work Health and Safety obligations . Fraud, corruption and/or maladministration prevention . Public safety – storm water drains and culverts . Maintenance of Council’s workers compensation self-insurer licence. In addition, the Committee provided advice on investigative processes throughout the year and undertook the role of monitoring the implementation of recommendations arising from some major external reviews.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 24 | Page 4. Ethical Conduct The Committee reviewed Council’s approach to: . Managing conflicts of interest . Managing gifts and benefits . Fraud prevention strategies . Corruption risk management . Probity issues relating to procurement practices and procedures . Developing and maintaining staff awareness of ethical conduct, risk management and corruption prevention. Closed Session Meetings with the Professional Conduct Coordinator (PCC) were held prior to each Committee Meeting to consider the PCC’s Progress Report for the preceding period. 5. Council Policy Reviews The Committee conducts ongoing reviews of the Council Policy Register and Corporate Governance Health Check to ensure that all key policies are current and meet legislative requirements. The Committee, during the year provided advice to Management and Council on the review of the following policies: . draft Model Code of Conduct (Office of Local Government) . Unsolicited Proposals policy . Councillor recordkeeping 6. Other Responsibilities The Committee Chairperson provided advice to the General Manager in relation to the assessment and investigation of Code of Conduct complaints. The Committee, during the year, received reports and provided advice to Management and Council on the review of Council’s advisory committee structure

Prepared by T Clout Chairperson Corporate Governance Committee 12 June 2018

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 25 | Page Sponsorship of Wollongong City Council Events The following table provides a list all sponsorship, as per Council’s Sponsorship Policy. (Figures reported excluding GST).

Sponsors / Event Australia NYE Moonlight Giving Tree Comic Gong Day $ Movies $ $ $ $ Friends of Wollongong City 3,000 Library BlueScope WIN Community Partners 2,500 Remondis 2,500 University of Wollongong 3,500 Telstra 10,000 McDonalds 2,000 Greenacres 1,000 Greencross Vets 500 Illawarra Dog Training Club 500 Dirty Dogz Day Spa 500 Bendigo Bank, Fairy Meadow 3,500 Go Hire 900 BlueScope WIN Community 500 Partners Acorn Lawyers 12,000 SouthCoast BMW 6,500 Foreshores Shipping Containers 500 Corrimal Chamber of Commerce 500 Horizon Credit Union 2,000 CareSouth 4,000 Thirroul Sea Side & Arts Festival 2,000 Total 27,400 18,500 9,000 500 3,000

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 26 | Page Disability Inclusion Action Plan 2016 – 2020 This is the second annual report of progress in the implementation of the Wollongong City Council Disability Inclusion Action Plan 2016 – 2020 which guides Council in meeting its requirements under the NSW Disability Inclusion Act 2014.

The plan has four focus areas: . Creating liveable communities . Improving access to services through better systems and processes . Promoting positive community attitudes and behaviours . Supporting access to meaningful employment.

The development of the plan involved extensive community consultation and Council continues to engage the community to ensure the priorities are current. A detailed Implementation plan and evaluation framework support the plan and measure our progress. An internal steering group with representatives across Council is overseeing the implementation of the plan.

HIGHLIGHTS FOR 2017 - 18 Annual Progress Completed Ongoing In Progress Pending Not Started (Projects) 9 82 7 0 10

Creating Liveable Communities Council has undertaken the following infrastructure projects to increase access to the built environment for people with disability: . Completed the Blue Mile Tramway Link project to improve accessibility to the Belmore Basin area and to the Continental Pool . Installed an Adult Lift and Change table at Wests Unanderra Pool, Unanderra and an automated toilet at Pop Errington Park . Completed Stage One of the accessible rainforest walk at the Wollongong Botanic Garden including a new entry off Robsons Road . Built three new cabins at Council tourist parks that include accessible ramp access . Improved access to several Council buildings including accessible toilets at Cringila and Coniston community halls, access to the kiosk at Mt Keira Summit and upgrades to the lift and balcony at the Wollongong Art Gallery . Installed an accessible lift platform into Berkeley Pool, Berkeley . Developed a Quick Links project where eight small projects to increase access were identified . Upgraded kerb ramps at 24 crossing points, five cycle way /shared paths and six footpaths . Improved access at 14 bus stops by creating paths of travel from the bus stop/shelter to the kerbside. Four of these upgrades incorporated seating and 5 incorporated shelters . Upgraded six car parks including paths of travel to and from the car parks.

Council is working towards a greater understanding of access across the city and has allocated funding in the 2017-18 budget to: . Develop a Public Toilet Strategy and work on the development of an implementation plan to deliver this strategy . Develop a Foreshore and Beach Access Strategy to inform future access upgrades to our beaches and foreshore areas . Collect data about access as part of the footpath condition audit . Undertake an access audit of bus stops and shelters . Undertake an audit of Council’s accessible parking both on road and in car parks in key locations.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 27 | Page Improve Access to Services Through Better Systems and Processes Council has worked to increase access to information including: . Installation of communication boards at Towradgi, Stuart Park, Botanic Garden, Corrimal and Thirroul playgrounds . Council is in the process of developing a new website. Increasing access to information for people with disability is a key goal of this project . 15 Council officers completed Easy Read Training to build skills in preparing documents using easy read techniques.

Council continues to be committed to consulting with people with disability. This includes: . Facilitating a mid term - Disability Inclusion Action Plan report back and engagement with people with disability . Engaging people with disability in the development of the Fairy Creek Master Plan.

Promote Positive Community Attitudes and Behaviours Council has worked towards promoting positive community attitudes and behaviours towards people with disability through the delivery of: . Employ-ABILITY local stories project to raise awareness of the Employ-ABILITY of people with disability through a series of short stories of local people with a disability in paid employment. Council has worked to increase opportunities for people with disability to participate in community activities. This includes: . Improved access to New Year’s Eve and Australia Day celebrations for people with disability. New Year’s Eve included a performance by an aerial artist with disability, an Auslan interpreter signing the countdown and a signed singing performance . Supported a range of recreation opportunities at Beaton Park Leisure Centre including Recreation Illawarra a partnership with the Disability Trust, Illawarra Academy of Sport group, the Water Rats swim group, and a gymnastics program for children with autism in the school holidays . Producing a calendar of events to celebrate International Day of People with a Disability ‘Celebration of Ability’ . Provided Ceramic Workshops for people with disability at the Wollongong Art Gallery.

Supporting Access to Meaningful Employment Council has worked to support people with disability seeking employment. Initiatives included: . Supported the Workers of Wollongong program by providing work experience opportunities for people with disability at Council’s tourist parks . Participated in mock interviews with people with disability to assist them with preparing for interviews . Continued to promote job vacancies at Council through disability networks.

ATTACHMENT D: ADDITIONAL LOCAL GOVERNMENT ACT REQUIREMENTS 2017-18 28 | Page PAYMENT OF EXPENSES AND PROVISION OF FACILITIES TO LORD MAYOR AND COUNCILLORS COUNCIL POLICY

ADOPTED BY COUNCIL: 9 NOVEMBER 2015

WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18: ATTACHMENT E 0 | P a g e PAYMENT OF EXPENSES AND PROVISION OF FACILITIES TO LORD MAYOR AND COUNCILLORS COUNCIL POLICY

BACKGROUND The Local Government Act 1993 requires Council to adopt a policy that allows for Councillors to receive adequate and reasonable expenses and facilities to enable them to carry out their civic duties as elected representatives of their local communities.

OBJECTIVE The objectives of this policy are to ensure that:  there is accountability and transparency in the payment of expenses incurred or to be incurred by Councillors;  these expenses and the facilities provided to Councillors are acceptable to, and meet the expectations of, the local community;  Council complies with legislative requirements; and  Councillors are not financially or otherwise disadvantaged in undertaking their civic duties.

POLICY STATEMENT This policy is to be read in conjunction with Council’s Code of Conduct for Councillors, particularly those provisions relating to the use of resources, to ensure that Councillor expenses and facilities are not used inappropriately. This policy is consistent with the goals and objectives outlined in the Community Strategic Plan and Council’s core values.

WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18: ATTACHMENT E 1 | P a g e PAYMENT OF EXPENSES AND PROVISION OF FACILITIES TO LORD MAYOR AND COUNCILLORS COUNCIL POLICY

TABLE OF CONTENTS

BACKGROUND ...... 1 OBJECTIVE ...... 1 POLICY STATEMENT ...... 1 PART 1 – INTRODUCTION ...... 4 Commencement ...... 4 Availability of Policy ...... 4 Reporting Requirements ...... 4 Legislative Provisions ...... 4 Approval Arrangements ...... 6 Approval Process ...... 6 PART 2 – PAYMENT OF EXPENSES ...... 7 GENERAL PROVISIONS - subject to the approval processes outlined in this Policy ...... 7 NOTE: All expense limits quoted within this Policy are exclusive of GST unless otherwise stated...... 7 Expenses ...... 7 Payment in Advance ...... 7 Reimbursement and Reconciliation of Expenses and Payments in Advance ...... 7 Community and Charitable Functions ...... 7 Dinners and Other Non-Council Functions ...... 7 Spouse and Partner Expenses ...... 7 SPECIFIC EXPENSES FOR MAYORS AND COUNCILLORS ...... 8 Attendance at Conferences and Seminars ...... 8 Local Travel Expenses – Official Council Business ...... 9 Professional Development ...... 10 Care and Other Related Expenses ...... 10 Protection Expenses and Obligations ...... 10 Insurance Expenses and Obligations ...... 10 Legal Expenses and Obligations ...... 11 PART 3 – PROVISION OF FACILITIES ...... 13 GENERAL PROVISIONS ...... 13 Provision of Facilities Generally ...... 13 Private Use of Equipment and Facilities ...... 13 PROVISION OF EQUIPMENT AND FACILITIES FOR COUNCILLORS ...... 13 Office ...... 13 Mobile Telephony ...... 13 Information Communication Technology ...... 13 Shredder ...... 14 Newspaper ...... 14

WOLLONGONG CITY COUNCIL ANNUAL REPORT 2017-18: ATTACHMENT E 2 | P a g e PAYMENT OF EXPENSES AND PROVISION OF FACILITIES TO LORD MAYOR AND COUNCILLORS COUNCIL POLICY

Stationery ...... 14 Postage ...... 14 Meals ...... 14 Refreshments ...... 14 Use of Motor Vehicle ...... 14 Parking ...... 15 Lockers ...... 15 Insignia of Office ...... 15 Secretarial Support ...... 15 Correspondence ...... 15 PROVISION OF ADDITIONAL EQUIPMENT AND FACILITIES FOR LORD MAYOR ...... 15 Motor Vehicle ...... 15 Office ...... 15 Purchase Card ...... 15 Motor Vehicle Parking Space ...... 15 Staff ...... 16 Refreshments ...... 16 Insignia of Office ...... 16 MAINTENANCE AND SERVICING OF EQUIPMENT ...... 16 PART 4 – OTHER MATTERS ...... 17 A Acquisition and Returning of Facilities and Equipment by Councillors ...... 17 B Status of the Policy ...... 17 C Dispute Resolution ...... 17

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STATEMENT OF PROCEDURES

PART 1 – INTRODUCTION

Commencement This policy commences on 9 November 2015 and replaces the existing policy on the Payment of Expenses and Provision of Facilities to the Lord Mayor, Deputy Lord Mayor and Councillors last amended on 13 October 2014.

Availability of Policy Council will ensure that this policy is readily identifiable and available to the community via Council’s website.

Reporting Requirements Legislative Clause 217 of the Local Government (General) Regulation 2005 requires Council to include detailed information in its Annual Report about the payment of expenses and facilities to Councillors. An annual report is to include the following information:  Details (including the purpose) of overseas visits undertaken during the year by Councillors, Council staff or other persons while representing the Council (including visits sponsored by other organisations);  Details of the total cost during the year of the payment of the expenses of, and the provision of facilities to, Councillors in relation to their civic functions (as paid by the Council, reimbursed to the Councillor or reconciled with the Councillor), including separate details on the total cost of each of the following: o The provision during the year of dedicated office equipment allocated to Councillors on a personal basis, such as laptop computers, mobile telephones and landline telephones and facsimile machines installed in Councillors’ homes (including equipment and line rental costs and internet access costs but not including call costs); o Telephone calls made by Councillors, including calls made from mobile telephones provided by Council and from landline telephones and facsimile services installed in Councillors’ homes; o The attendance of Councillors at conferences and seminars; o The training of Councillors and the provision of skill development for Councillors; o Interstate visits undertaken during the year by Councillors while representing the Council, including the cost of transport, cost of accommodation and other out-of-pocket travelling expenses; o Overseas visits undertaken during the year by Councillors while representing the Council, including the cost of transport, cost of accommodation and other out-of-pocket travelling expenses; o The expenses of any spouse, partner (whether of the same or opposite sex) or other person who accompanied a Councillor in the performance of his or her civic functions, being expenses payable in accordance with the Guidelines for the Payment of Expenses and the Provision of Facilities for Mayors and Councillors for Local Councils in NSW prepared by the Director-General from time to time; and o Expenses involved in the provision of care for a child of, or an immediate family member of, a Councillor, to allow the Councillor to undertake his or her civic functions. Council’s Annual Report must also incorporate a copy of this policy. Council A report on Lord Mayor, Councillor and General Manager expenses will be submitted to each Corporate Governance Committee meeting. An audit of Lord Mayor and Councillor expenses will be included in the Internal Audit Plan and undertaken every three years.

Legislative Provisions This policy has been prepared in accordance with the provisions of Sections 23A, 252, 253 and 254 of the Local Government Act 1993 and Clause 403 of the Local Government (General) Regulation 2005 which are detailed hereunder:

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Local Government Act 1993 (the Act) Section 252 of the Act states: 1 Within five (5) months after the end of each year, a Council must adopt a policy concerning the payment of expenses incurred or to be incurred by, and the provision of facilities to, the Mayor, the Deputy Mayor (if there is one) and the other Councillors in relation to discharging the functions of civic office. 2 The policy may provide for fees payable under this Division to be reduced by an amount representing the private benefit to the Mayor or a Councillor of a facility provided by the Council to the Mayor or Councillor. 3 A Council must not pay any expenses incurred or to be incurred by, or provide any facilities to, the Mayor, the Deputy Mayor (if there is one) or a Councillor otherwise than in accordance with a policy under this section. 4 A Council may from time to time amend a policy under this section. 5 A policy under this section must comply with the provisions of this Act, the regulations and any relevant guidelines issued under section 23A. Section 253 of the Act states: 1 A Council must give public notice of its intention to adopt or amend a policy for the payment of expenses or provision of facilities allowing at least 28 days for the making of public submissions. 2 Before adopting or amending the policy, the Council must consider any submissions made within the time allowed for submissions and make any appropriate changes to the draft policy or amendment. 3 Despite subsections (1) and (2), a Council need not give public notice of a proposed amendment to its policy for the payment of expenses or provision of facilities if the Council is of the opinion that the proposed amendment is not substantial. 4 Within 28 days after adopting a policy or making an amendment to a policy for which public notice is required to be given under this section, a Council is to forward to the Director-General: a a copy of the policy or amendment together with details of all submissions received in accordance with subsection (1); and b a statement setting out, for each submission, the Council’s response to the submission and the reasons for the Council’s response; and c a copy of the notice given under subsection (1). 5 A Council must comply with this section when proposing to adopt a policy each year in accordance with section 252(1) even if the Council proposes to adopt a policy that is the same as its existing policy. Section 254 of the Act requires that a part of a Council or Committee meeting which considers the adopting or amending of this policy must not be closed to the public. Section 23A of the Act makes provision for the Director-General of the Office of Local Government from time to time to prepare, adopt or vary guidelines that relate to the exercise of any of its functions. It also requires that a Council must take the relevant guidelines into consideration before exercising any of its functions. Local Government (General) Regulation 2005 Clause 403 of the Regulation states that a policy under Section 252 of the Local Government Act 1993 must not include any provision enabling a Council:  To pay any Councillor an allowance in the nature of a general expense allowance; or  To make a motor vehicle owned or leased by the Council available for the exclusive or primary use or disposition of a particular Councillor other than a Mayor. Other Government Policy Provisions This policy has also been prepared in consultation with the following documents:  The Office of Local Government Guidelines for payment of expenses and provision of facilities for Mayors and Councillors which have been issued under Section 23A of the Local Government Act 1993.  Council’s Code of Conduct and, in particular, sections related to Use of Council Resources.  ICAC publication – No Excuse for Misuse.

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Approval Arrangements 1 A Councillor Request to Attend External Event application form is to be submitted to the Lord Mayor in the first instance for Councillor attendance at any Conference, seminar, meeting with external parties on official Council business, professional development or training and skills development session, community function, dinner and other non-Council event or function the Councillor wishes to attend in their civic capacity. All requests for approvals under this Policy are to be made in writing. Verbal requests will not be considered. 2 Application forms are to be submitted prior to attendance at the event and/or any expenses being incurred and must detail the purpose of the trip, expected benefits, duration, itinerary and approximate costs (where known). 3 The Lord Mayor will consider whether they are authorised to approve the application form or whether it is appropriate to refer the application form for report to an open meeting of Council. 4 Where a report to Council is required, reports must detail the purpose of the trip, expected benefits, duration, itinerary, approximate costs and nomination/number of Councillors undertaking the trip. 5 Overseas travel must be approved prior to the Councillor/s undertaking the trip. 6 Retrospective reimbursement of overseas travel expenses is not allowed unless prior authorisation of the travel has been obtained. 7 The use of a Lord Mayoral Minute to obtain Council approval for travel is not appropriate as it is not consistent with the principles of openness and transparency.

Approval Process

Lord Mayor Report to Lord Mayor Approval Open Approval Only* Meeting of and Noted Council by GM A Costs not exceeding $2,000 (ex GST) per Councillor, up to a maximum of $4,000 per event in accordance with the following criteria: i Applications for attendance at any event, including those  requiring overnight accommodation and/or air travel within the ACT or New South Wales, including but not limited to:  Conferences/seminars;  Board meetings, meetings with government ministers or external organisations where the Councillor is Council’s appointed representative;  Community functions, annual awards, dinners and other non-Council Functions;  Events where the Councillor has been invited to speak on behalf of Council. ii Professional Development requests.  B Use of private vehicle for (non-local) official Council business  C Applications for attendance at any event or professional  development where individual Councillor attendance costs exceed $2,000 or $4,000 per event. D Applications requiring interstate travel.  E Applications requiring overseas travel.  F All other Applications and where approval at a meeting of  Council is not possible or appropriate.

* Where the Lord Mayor is the applicant, approval may be granted by the Deputy Lord Mayor and be noted by the General Manager or granted by the General Manager and be noted by the Deputy Lord Mayor.

END OF PART ONE

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PART 2 – PAYMENT OF EXPENSES

GENERAL PROVISIONS – subject to the approval processes outlined in this Policy.

NOTE: All expense limits quoted within this Policy are exclusive of GST unless otherwise stated.

Expenses  Council will reimburse reasonable incidental personal out-of-pocket expenses incurred by Councillors in attending Civic Functions, meetings relating to official Council business, seminars, conferences and training sessions. Incidental expenses include telephone or facsimile calls, laundry and dry cleaning (associated with overnight travel), taxi fares, parking station fees and cost of meals not included in registration fees, but excludes tips, and such expenses shall not exceed: o $150 per day excluding meals; or o $250 per day including meals, of which not more than $150 shall be on meals.  Other incidental expenses such as refreshments and parking meter fees, may be incurred and reimbursed without substantiation up to a value equivalent to the current Australian Taxation Office Taxation Determination on the reasonable travel and overtime meal allowance expense amounts for the current income year.

Payment in Advance Councillors may request a payment in advance, up to a maximum of $250 per day, in anticipation of expenses being incurred in attending conferences, seminars and training outside the City of Wollongong.

Reimbursement and Reconciliation of Expenses and Payments in Advance Councillors are required to complete a Reimbursement of Expenses Form for any claims not included on the monthly Councillor Claim for Expenses Form. Unless otherwise stated in this Policy, a claim for reimbursement of expenses and accounting for any payment in advance must be substantiated and lodged within 30 days of the costs being incurred.

Community and Charitable Functions Council will provide a budget allocation in the Annual Budget for Councillor attendance at community and charitable functions. Where a Councillor accepts an invitation to attend a community or charitable function in the role of a Councillor, Council shall meet all costs associated with such attendance, including entry but excluding travel costs.

Dinners and Other Non-Council Functions  Council will meet the entry fee associated with the attendance of a Councillor at a dinner or other non-Council function which provides briefings to Councillors from key members of the community, politicians and business.  Council will not contribute to, or reimburse to a Councillor, any costs associated with attendance at any political fundraising event, any donation to a political party or candidate’s electoral fund or for some other private benefit.

Spouse and Partner Expenses Council will meet:  Reasonable costs of spouses, partners or an accompanying person in attending official Council functions that are of a formal or ceremonial nature where the Councillor’s spouse, partner or accompanying person would reasonably be expected to attend. Examples include, but are not limited to Australia Day Award Ceremonies, Citizenship Ceremonies, Civic Receptions and charitable functions at the request of the Lord Mayor.  Limited expenses associated with the attendance of the Councillor’s spouse, partner or accompanying person at the Local Government NSW Annual Conference.

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These expenses are limited to the cost of the spouse, partner or accompanying person’s registration (including the official conference dinner and welcome reception) and official functions hosted by Wollongong City Council at the conference. Travel expenses, any additional accommodation expenses and the cost of the spouse, partner or accompanying person’s tours, etc will be the responsibility of individual Councillors.  Reasonable costs of the spouse, partner or accompanying person of the Lord Mayor (or a Councillor representing the Lord Mayor) where the spouse, partner or accompanying person would reasonably be expected to attend an official function of Council or accompany the Lord Mayor (or a Councillor representing the Lord Mayor) to carry out an official ceremonial duty within NSW or the ACT. Such functions include charitable functions to which the Lord Mayor has been invited and award ceremonies and other functions to which the Lord Mayor is invited to represent the Council. NOTE: The payment of expenses as detailed above is limited to the cost of the ticket, meal and/or the direct cost of attending the function. Where not provided above, all expenses incurred in relation to the attendance of a spouse, partner or accompanying person at any event, function, seminar, conference, business trip and the like, must be met by the Councillor or the spouse, partner or accompanying person. Peripheral expenses incurred by a spouse, partner or accompanying person such as grooming, special clothing and transport are not reimbursable expenses. In this section, reference to an ‘accompanying person’ is a person who has a close personal relationship with the Councillor and/or provides carer support for the Councillor.

SPECIFIC EXPENSES FOR MAYORS AND COUNCILLORS

Attendance at Conferences and Seminars Councillors will be required to submit a Councillor Request to Attend External Event application in respect of all other conferences and seminars for approval in accordance with this policy – refer to Approval Arrangements – with the exception of those seminars and training courses included in Council’s Induction Program. In determining Council’s delegates to the Local Government NSW Annual Conference the Lord Mayor and Deputy Lord Mayor are automatically granted delegate status. Costs  Council will arrange for all bookings and reservations associated with Councillors’ attendance at approved external events covered by this policy including those relating to travel, accommodation, official luncheons, dinners and tours/inspections considered relevant to the business and interest of Council.  All other costs incurred by an individual Councillor except where otherwise stated in this policy, will be the responsibility of the individual Councillor. Accommodation  Where possible, accommodation is to be booked at the conference venue unless the General Manager determines otherwise.  In all other cases Council will ensure that reasonable and appropriate accommodation is provided to Councillors and in this regard a standard equivalent to 4 Star, where available, is considered appropriate.  Preference will be given to accommodation venues providing Government Rates. Mode of Travel  All reasonable travel costs for Councillors whilst on official Council business will be met by Council and will be in accordance with the following standards: New South Wales and Australian Capital Territory The method of transport will be by road except in circumstances where air travel is considered the most appropriate method. Road Travel o Councillors may request the use of a Council motor vehicle for official business use.

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o Councillors are required to complete the Councillors Motor Vehicle Requisition and must comply with the general conditions of the Vehicle Management Policy. Where a number of Councillors are attending the same function, every attempt is to be made to share motor vehicles. o A minimum of 48 hours’ notice is required for access to a vehicle for overnight use and 7 days’ notice for longer periods. o A Councillor is permitted to use their private vehicle for (non-local) official Council related business: . where a Council vehicle is not available; or . in circumstances where it is considered reasonable and is pre-approved by the Lord Mayor. Note: In general, the use of a Council vehicle for Council related business is preferred. In such instances, reimbursement will be equivalent to the per kilometre rate as specified in the NSW Local Government (State) Award with the total claim not exceeding the cost of return air travel, where available, plus transfer costs. o A hire car may be utilised by Council in instances such as travel to and from Sydney airport when a number of Councillors are attending a Conference or where a Council vehicle is unavailable. Air Travel Australia and New Zealand o Economy class, where air travel time is less than four (4) hours. o Premium economy class, where air travel time exceeds four (4) hours. Where premium economy class is unavailable, business class is appropriate. Overseas o Air travel – premium economy, where available; if not available, business class is appropriate. o A Councillor seeking to extend travel for personal reasons whilst overseas on Council business must seek the approval of the Lord Mayor prior to making travel arrangements and must meet all additional costs associated with the extension. Travel Arrangements All Councillor travel arrangements will be centrally coordinated and booked by a Council officer with Council’s approved travel provider or via the internet. Conference Reports After returning from Conferences or overseas travel, a Councillor is to provide a written report to Council via the Information Folder on an assessment of the event including the benefit to Council and the community and the knowledge gained. No such report is required in respect of the Local Government NSW Annual Conference and the Australian Local Government Association’s National General Assembly of Local Government. Each quarter the General Manager shall inform Councillors via the Information Folder of the Conferences attended by Councillors and the expenses incurred.

Local Travel Expenses – Official Council Business  Private Vehicle – If the Lord Mayor or a Councillor is required to use his/her private vehicle, reimbursement will be equivalent to the per kilometre rate as specified in the NSW Local Government (State) Award. This allowance takes into account the use, maintenance and depreciation of the vehicle.  Public Transport – Councillors travelling by taxi or other means of public transport shall be reimbursed for actual expenses incurred subject to substantiation within 30 days of the costs being incurred. Council will provide Councillors with access to the Wollongong Taxi Service for travel in the Wollongong area on Council related business with all costs charged to Council.  Official Council Business includes, but is not limited to, attendance at the following: o all Council and Committee meetings including Council reference groups and Councillor briefing forums; o civic receptions; o meetings and inspections; o authorised conferences, seminars and training; o Independent Hearing and Assessment Panel (IHAP) and/or formal facilitation sessions; o meetings of external organisations where the Councillor is an elected Council delegate or alternate delegate; and o where Councillor attendance is required at official Council events as indicated on the Corporate Diary.

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Councillors are to take the most direct route when travelling on Council business.

Professional Development  All Councillors are expected to attend any Post Election Seminars coordinated by the Office of Local Government.  Councillors are expected to familiarise themselves with the Councillor Development Strategy which is a joint initiative of the Office of Local Government and the Local Government and Shires Associations of New South Wales.  Councillors are encouraged to undertake relevant training and skills development as part of the Local Government Professional Development Program and other appropriate programs to assist them in carrying out their civic duties.  Council will include in its annual budget a specific allocation for Councillors training and educational expenses. This budget will be increased to provide for additional training following a Council general election or introduction of new legislation.  Councillors are required to complete the Councillor Request to Attend External Event application for approval in accordance with this Policy – refer Approval Arrangements.

Care and Other Related Expenses  Council will reimburse Councillors the costs of reasonable child care expenses whilst attending: o Council and Committee meetings; and o the Local Government NSW Annual Conference during consideration of conference motions and conference dinner. All other child care expenses incurred at the Conference are to be met by the relevant Councillor.  Council will reimburse Councillors for the reasonable carer expenses incurred for immediate family members in order to allow the Councillor to fulfil his/her Council business obligations. Examples are care of elderly, disabled or sick family members.  All costs are subject to substantiation and will be reimbursed with the Councillor’s next monthly fee payment.  Reimbursement of Care and other related expenses will be made up to a limit of $2,000 per year.  Reimbursement does not apply where the care is provided by immediate family members including family, spouse or partner.

Protection Expenses and Obligations  Council may assist in providing protection to Councillors from any adverse security breaches to their person or property. Approval of the General Manager must be sought and gained prior to any expenses being incurred by Councillors.  The General Manager will determine requests after consultation with the NSW Police as to the risk and history of the matter. These protection measures may take the form of a security assessment, installation of a security system and/or physical monitoring.  Council will, subject to substantiation, reimburse Councillors for expenses that they may incur up to a limit of $2,000 per year.  Should an amount above the $2,000 per year limit be required by any Councillor, the matter will be referred to Council for determination after taking advice from the General Manager, Independent Chair of the Corporate Governance Committee and/or the Professional Conduct Coordinator.

Insurance Expenses and Obligations Councillors are to receive the benefit of insurance coverage effected by Council subject to any terms, conditions, exclusions and limitations of the policy of insurance effected by Council, for: a Travel for Councillors and accompanying spouses/partners on Council Business within Australia (outside of 100km from Wollongong) and Worldwide:  Personal injury and capital benefits;  Medical, evacuation and additional expenses (excluding medical expenses payable within Australia);

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 Evacuation cover (non-medical);  Baggage, travellers cheques, travel documents and credit cards, portable computers, display property and money;  Loss of deposits and cancellation charges;  Rental vehicle excess expenses; and  Personal liability. b Personal Accident for Councillors  Lost wages for injury and capital benefits for death or permanent disability. c Councillor’s Liability Liability to a third party arising out of Councillors’ exercise of their functions as Councillors including liability in the form of awards of damages (including punitive and exemplary damages), awards of costs or settlements (including plaintiff’s legal costs and expenses), pre- and post-judgment interest on a covered judgment or award, and the multiplied portion of multiple damages, defence/investigation costs, appeal costs, fines and penalties pursuant to any statute arising from any actual, alleged or proposed act, error or omission, breach of duty, breach of trust, misstatement, misleading statement or breach of warranty of authority by a Councillor.

Legal Expenses and Obligations 1 Councillors are to receive the benefit of relevant insurance coverage that may be effected by Council for Legal Services in the event of: a An enquiry, investigation or hearing by an appropriate investigative or review body including:  Council’s Conduct Review Committee/Reviewer;  Independent Commission Against Corruption;  Office of the NSW Ombudsman;  Office of Local Government;  NSW Police Force;  Director of Public Prosecutions or  NSW Civil and Administrative Tribunal; into the conduct of a Councillor; or b Legal proceedings being taken against a Councillor, arising out of or in connection with the Councillor's exercise in good faith of their functions as a Councillor. Provided the circumstances of the matter are reported to Council’s relevant insurance provider who in turn consents to the legal services and costs prior to the costs being incurred. Council shall subject to the terms and condition of the insurance coverage reimburse such Councillor, after the conclusion of the enquiry, investigation, hearing or proceeding, for expenses properly and reasonably incurred, given the nature of the enquiry, investigation, hearing or proceeding, on a Solicitor/client basis, provided that: i approval of the General Manager and insurance provider for the nominated solicitor and their hourly rates is both sought and gained in writing prior to legal expenses being incurred; ii approval of the General Manager and insurance provider for any additional legal expenses is both sought and gained in writing prior to those expenses being incurred; iii the outcome of the legal proceedings is favourable to the Councillor or where an investigator or review body makes a finding that is not substantially unfavourable to the Councillor; iv the amount of such reimbursement shall be reduced by the amount of any monies that may be or are recouped by the Councillor on any basis; and v the Councillor’s exercise of their function was, in the opinion of Council, bona fide and proper and as a Councillor. 2 Notwithstanding any other provisions of this Policy the following costs cannot be the subject of reimbursement: i the costs of any action in defamation taken by a Councillor as plaintiff in any circumstances; ii the costs of a Councillor seeking advice in respect of possible defamation, or in seeking a non-litigious remedy for possible defamation; iii legal costs for legal proceedings that do not involve a Councillor performing their role as a Councillor;

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iv legal costs of legal proceedings initiated by a Councillor under any circumstances; or v the costs of defending any matter relating to the eligibility of a Councillor to stand for election.

END OF PART 2

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PART 3 – PROVISION OF FACILITIES

GENERAL PROVISIONS

Provision of Facilities Generally The facilities, equipment and services made available under this policy are considered appropriate to support the Lord Mayor and Councillors in undertaking their role as elected members of Council.

Private Use of Equipment and Facilities Councillors should not generally obtain private benefit from the provision of equipment and facilities, nor from travel bonus or any other such loyalty schemes. However, it is acknowledged that incidental use of Council equipment and facilities may occur from time to time. Such incidental private use is not subject to a compensatory payment.

PROVISION OF EQUIPMENT AND FACILITIES FOR COUNCILLORS

Office  A furnished Councillors room is provided on the tenth floor of the Administrative Centre for use by all Councillors.  This office will incorporate two computers configured to Council’s standard operating environment, printing facility, telephones and a refrigerator.

Mobile Telephony  A Smart Phone with a minimum of 1000Mb data allowance will be available to Councillors for official use on request.  Council will meet the cost of calls up to a maximum of $300 (Excluding GST) per quarter with any additional costs being borne by the individual Councillor and will be deducted from their next monthly Councillor fee payment.  International roaming and message bank roaming will be activated when requested by a Councillor proposing overseas travel. However, where the travel is for vacation or personal business purposes all outgoing call costs incurred are to be reimbursed to Council by way of deduction from the next Councillor monthly fee payment.  Each month Councillors will receive a copy of their monthly smart phone account and be required to complete an online mobile phone usage declaration, highlighting any personal calls charges to be reimbursed to Council by way of deduction from their next monthly Councillor fee payment. The declaration is to be completed each month.  A Councillor may wish to use their private mobile phone in lieu of a Council provided smart phone and in such circumstances Council will meet the cost of Council business related calls only, up to a maximum of $300 per quarter subject to submission of their monthly telephone account highlighting that expenditure has been incurred. The Councillor will be responsible for any mobile phone access plan.

Information Communication Technology Council will provide Councillors with a Council specified standard Tablet PC package, printing facility and internet access.  Councillors will be provided with appropriate induction in the use of the provided equipment.  Internet access will be filtered by Council. A minimum of 3000Mb data allowance is included with all excess charges being reimbursed to Council by way of deduction from their next monthly Councillor fee payment.  Usage of all Council provided technology requires compliance with Council’s Technology Systems Acceptable Usage Policy. Councillors will be required to endorse a copy of the policy indicating that they have read the contents and agree to comply with the policy. Any alleged breach will be referred to the General Manager for appropriate action.  Council will provide support services during business hours, being 8.30 am to 5.30 pm, to assist Councillors in resolving operational issues. Such support will only relate to Council related services and applications. Non Council related applications will not be installed.

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 Councillors will be provided with consumables such as printer cartridges and paper for Council related purposes and will be available for collection at Council’s Administrative Centre.  Councillors may be reimbursed for the use of private printing device consumables (printer cartridges and paper), upon presentation of receipts, up to an annual value of $250. Councillors must submit their claim, quoting an estimated percentage of Council use of the private printing device and will be reimbursed for the equivalent percentage of the total cost of the consumables. For example, where an estimated percentage of Council use is 50%, reimbursement will be 50% of the total cost of the item/s.  Access to a Council supplied email address and Councillor Portal will be provided on the Tablet PC and the computers in the Councillors Room on the tenth floor of the Administrative Centre.

Shredder A medium duty personal shredder up to a maximum capacity of 10 pages shall be provided to the Lord Mayor and Councillors on request.

Newspaper One Illawarra Mercury newspaper home delivered Monday to Saturday, and/or subscription to the digital edition of the Illawarra Mercury.

Stationery Lord Mayor and Councillor stationery, business cards, briefcase, diary and Christmas cards – Lord Mayor (up to 150 pa) and Councillors (up to 100 pa). Council stationery is not to be converted or modified in any way and may only be used for carrying out the functions of civic office.

Postage All outgoing mail is to be included as part of Council’s daily mail collection by Australia Post and as such needs to be delivered to Council’s Administrative Centre. Mail is not permitted to be delivered directly to an individual Post Office.

Meals Councillors will be provided with a meal and refreshments, excluding alcohol, prior to Council meetings and Councillor briefings.

Refreshments Beverage service in the Councillors’ Room, excluding alcohol.

Use of Motor Vehicle  Councillors may request the use of a Council motor vehicle for official business use.  Councillors are required to complete a Councillor Motor Vehicle Requisition and must comply with the general conditions of the Motor Vehicle Management Policy. Where a number of Councillors are attending the same function, every attempt is to be made to share motor vehicles.  A minimum of 48 hours’ notice is required for access to a vehicle for overnight use and 7 days’ notice for longer periods.  A Councillor is permitted to use their private vehicle for (non-local) official Council related business: o where a Council vehicle is not available; or o in circumstances where it is considered reasonable and is pre-approved by the Lord Mayor. Note: In general, the use of a Council vehicle for Council related business is preferred. In such instances, reimbursement will be equivalent to the per kilometre rate as specified in the NSW Local Government (State) Award.  Individual drivers are personally liable for all fines resulting from breaches of traffic laws and regulations and parking offences when using a Council provided vehicle and when using a private vehicle for Council related business.

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Parking Councillors will be provided with two Wollongong City Council stickers for affixing to their private vehicle to enable them to park in the Administrative Centre car park or the Stewart Street East car park free of charge when attending the City on Council business.

Lockers A locker will be provided for each Councillor.

Insignia of Office Councillors will be provided with a jacket and name badge to be worn at civic functions indicating that the wearer holds the office of Deputy Lord Mayor and/or Councillor.

Secretarial Support Council staff will be available on the tenth floor of Council’s Administrative Centre as required to provide Councillors with stenographic and administrative support.

Correspondence  Correspondence to individual residents or groups of residents should be directly related to issues concerning that resident or group of residents.  Correspondence should not refer to the Lord Mayor or Councillor’s political allegiance or non-allegiance to any political group, organisation or party. This relates to any hard copy and/or electronic correspondence sent as Council business.  The Lord Mayor and Councillors should be mindful, particularly in the lead up to elections, that material should not directly or indirectly seek to promote the electoral prospects of any individual or group.  The content of mass correspondence (more than 50) with residents, which utilise Council resources, facilities or funds, should be referred to the General Manager or Public Officer for perusal as to its compliance with the above policy, prior to distribution.

PROVISION OF ADDITIONAL EQUIPMENT AND FACILITIES FOR LORD MAYOR

Motor Vehicle  A fully serviced and maintained vehicle with a value (inclusive of GST) below the Luxury Car Tax (LCT) threshold for official civic duties and incidental use or a credit through a Novated Lease to a similar value.  Full private use is available in accordance with the private use provisions contained within Council’s Vehicle Management Policy.  Servicing ensures that the vehicle is serviced, cleaned and fuelled ready for daily use.  The Lord Mayor is personally liable for all fines resulting from breaches of traffic laws and regulations and parking offences incurred whilst driving this vehicle.

Office  A furnished office suite located on the tenth floor of Council’s Administrative Centre.  This office will incorporate a computer configured to Council’s standard operating environment where required/requested, telephones, refrigerator and meeting room.

Purchase Card A Purchase Card will be provided to meet hospitality, reasonable incidental and other expenses incurred by the Lord Mayor in discharging his or her functions on behalf of Council. Use of the Purchase Card is to be in accordance with Council’s Purchase Card Policy.

Motor Vehicle Parking Space A permanent parking space in the basement of Council’s Administrative Centre will be provided to the Lord Mayor and Deputy Lord Mayor.

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Staff  An Executive Officer will provide executive support on a full time basis if required.  A Personal Assistant will provide stenographic/clerical support on a full-time basis.

Refreshments Food and beverage service associated with hosting meetings within the Administration Building, excluding alcohol.

Insignia of Office  Provision of a jacket, badge and name plates to be worn at civic functions indicating that the wearer holds the offices of Lord Mayor and Councillor.  Provision of a Lord Mayoral Robe and Chain to be worn at civic receptions, citizenship ceremonies and other appropriate functions.

MAINTENANCE AND SERVICING OF EQUIPMENT  Servicing and repairs to all Council provided equipment will be coordinated through Council’s IT Help Desk facility during business hours, being 8.30 am to 5.30 pm, on the basis of a back-to-base service.  All servicing and repairs to any privately owned equipment will be the responsibility of the individual Councillor irrespective of whether it is used for Council related business.

END OF PART 3

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PART 4 – OTHER MATTERS

A Acquisition and Returning of Facilities and Equipment by Councillors  All equipment provided to Councillors remains the property of Council except where Councillors are seeking to purchase equipment in accordance with this policy.  Councillors are to return all Council owned equipment to the location nominated by the Manager Governance and Information in accordance with the following circumstances: o Local Government Election – by 5.00 pm on the day preceding the day of the election; o Resignation from Civic Office – by 5.00 pm on the day of resignation; and o Extended Leave of Absence – where a Councillor has been granted leave of absence for a period of more than three (3) months.  A Councillor will be provided with the opportunity to purchase Council owned equipment in accordance with the following: o Where a Councillor has been in office for at least one full term of Council; o Where a Councillor has indicated that he/she is not standing for re-election at the next Council election; o Where a Councillor has been unsuccessful in seeking re-election; and o The sale price will be determined by the General Manager based on fair market value.  The opportunity to purchase Council owned equipment will not be available to a Councillor who: o Is disqualified from holding civic office; o Is dismissed from civic office; or o Ceases to hold civic office for any other reason.

B Status of the Policy Council may amend this Policy from time to time in accordance with the provisions of Sections 252 and 253 of the Local Government Act. However Council must adopt such a Policy within five (5) months after the end of each year as required by Section 252. For the purposes of this Policy a ‘year’ is defined as being a financial year.

C Dispute Resolution Where an individual Councillor disputes the decision on an expenses claim, Councillor Request to Attend External Event application or the provision of facilities the following process will apply:  The Councillor must notify the General Manager, in writing, of the details of the claim or request for facilities;  The General Manager will investigate the issue and inform the Councillor of the decision, in writing, within seven (7) days of the request being received;  Should the Councillor not accept the General Manager’s decision, the General Manager will submit a report to Council outlining the reasons for denying the claim or request; and Council’s decision will be final and no further appeal will be permitted.

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SUMMARY SHEET

Responsible Division Governance and Information

Date adopted by Council 9 November 2015

Date of previous adoptions 13 October 2014; 11 November 2013; 8 April 2013; 12 November 2012; 28 November 2011; 26 July 2011; 19 November 2007; 17 October 1994

Date of next review November 2016

Prepared by Governance Officer

Authorised by Manager Governance and Information

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