Annual Report 2012/13 About This Annual Report

Report Report Annual SHIRE COUNCIL BASS COAST 2012/13

1 | Bass Coast Shire Council Annual Report 2012/13 About this Annual Report

This is the fourth and last report against the objectives set out in the Council Plan 2009– 2013. Council elections were held by postal vote on 27 October 2012 and a new Council was appointed for a period of four years commencing 31 October 2012. The incoming Council has adopted a new Council Plan, covering the period from 2013 to 2017. This Annual Report was prepared to meet our regulatory and legislative reporting obligations. It is also an important vehicle to provide open, accurate and honest information to our residents, ratepayers, businesses and others with an interest in our Shire. Bass Coast Shire Council has elected not to produce printed copies of the Annual Report, other than copies required for legal or regulatory purposes. The Annual Report is available online and for inspection at Council premises. If you require a hard copy of this Report, please contact Council.

Bass Coast Shire Council 76 McBride Avenue, Wonthaggi VIC 3995 DX 34903 Wonthaggi PO Box 118, Wonthaggi VIC 3995 1300 BCOAST (226 278) for standard call cost National Relay Service 13 36 77 (for people with communication difficulties) email: [email protected] www.basscoast.vic.gov.au www.twitter.com/basscoast Council offices: Wonthaggi: 76 McBride Avenue Cowes: 91-97 Thompson Avenue Inverloch: 16 A’Beckett Street Grantville: 1509 Bass Highway Annual Report Annual 2012/13 Council Shire Coast Bass |

2 Occupational Health andSafety Employees and Performance Senior Officer Remuneration Senior Management T Structure andPeople Highlights oftheYear Incoming Council Outgoing Council Councillors Chief Executive Officer’s message Vision, Mission &Values How your rates are spent Map About Bass Coast About thisAnnual Report Contents Support Support Councillor’s Allowances and Elected Representatives Corporate Governance Cohesive Communities Business Prosperity Environmental Sustainability Good Governance Advocacy Objectives Performance Against Strategic Financial Overview Carers’ Recognition Volunteers Learning andDevelopment WorkCover ProgramEqual Opportunity eam

40 20 26 26 44 24 24 36 22 25 25 27 23 23 52 47 53 53 32 33 10 16 14 15 13 8 9 6 4 2 Council Committees Delegations Attendance at Council Meetings Council Meetings Council DecisionMaking Conflict ofInterest Councillor Code ofConduct Council’s Role Community Consultation Asset Management Performance Indicators Reporting Adopted Plans andPolicies Strategic Planning Process Council Plan Business Planning Membership ofOrganisations Other Committees Council Representatives on Public Art ReferencePublic Art Human Resources Place Names Bass Coast Shire Council Municipal Fire Management Planning Emergency Management Bass Coast Municipal Safety andEvents Advisory Bass Coast Community Road Safety Bass Coast Community Australia Day Emergency Management Bass Coast Municipal Audit

60 60 60 58 58 58 58 56 56 56 59 59 59 55 55 55 55 55 63 57 57 57 57 57 57 57 53 61 Report Report two:Section Annual Financial S Appendix 7–Performance Grants Appendix 6–Special Events Works Grants Appendix 5–MinorCapital Appendix 4–Community Grants Available for PublicInspection Appendix 3–Documents Government Indicators Appendix 2–Victorian Local Other Organisations Appendix 1–Membership of Appendices Glossary Ward Funds Grants anddonations Property RiskAudit Risk Management Protected Disclosures Risk Management Public Liability Audit Information Privacy Freedom ofInformation Management Plan Domestic Animal Local Laws Procurement Policy Legislative Compliance Process Improvements and BestValue Continuous Improvement tatement

88 68 68 66 66 66 66 66 66 64 64 64 64 64 65 70 82 67 77 76 72 75 74 73 71

3 | Bass Coast Shire Council Annual Report 2012/13 About Bass Coast

Bass Coast’s unique combination of unspoiled coastline and picturesque rural hinterland is less than two hours drive from Melbourne. Annual Report Annual 2012/13 Council hire S Bass Coast Coast Bass |

4 making andmanyothers. range eggs, olives, wineries, cheese enterprises, includingvenison, free as well asmanyagricultural boutique such asdairyandmeat production, combination oftraditional farming, to thelocal economy through a (approximately annually) $138million cent ofthetotal economic output Agriculture contributes over 7per approximately 3200 jobs annually. indirect expenditure, andsupports generates over indirect $1billion and indirectly. and approximately $385million $659 indirect million expenditure, T sheep grazing. agriculture, particularly cattle and Our majorindustriesare tourism and Employment Economy and than 3.4 visitors million each year. Phillip A and manymajorevents, suchasthe beaches, uniquenature reserves T swells to over 70,000. During peak periods,ourpopulation people wanting to make asea change. also very attractive to visitors andto proximity to Melbournemakes it permanent residents. However, its Bass Coast isthehomeof30,000 28 towns. addition, theShire comprises afurther Inverloch, RemoandGrantville. San In Wonthaggi, Cowes Island), (Phillip Bass Coast’s maincentres are Strait inthesouth. Gippsland Shire intheeast andBass Cardinia Shire east, inthenorth South Westernport andwest, inthenorth of Melbourneandisboundedby is located about130kmsouth east Local Government Act 1989 (Vic).It incorporatedauthority underthe Coast’) isalocal government Bass Coast Shire Council (‘Bass About Bass Coast ourism isestimated to generate about he ustralian Motorcycle Grand Prixat the S hire boastsmanybeautiful I sland Circuit, that attract more T his means that tourism is $855. The median weekly household income cent. U Victoria average of58.2percent. for work. T that is,employed oractively looking 51.9 percent are inthelabour force, O jobs were largely temporary. Desalination Project; however, these construction oftheVictorian reflects thelevel ofactivity during per cent(16.5 oftotal jobs). T approximately people 2,000 employer intheS construction was thebiggest During theyear 2012/13, existence ofBass Strait in1796. it duringanexpedition to prove the explorer George Bass, whosighted The area takes itsnamefrom the Coast area are theBunurong people. The traditional owners oftheBass History reside outsidetheShire. approximately half ofall ratepayers the Shire asaholiday destination, theattractivenessReflecting of the previous year. Shire. Thisisanincrease of447 from were 29,000 rateable properties inthe In thefinancial year 2012–2013,there the State. years, compared to 17.4 percent for of ourpopulation isaged over 65 percent).(32.2 Further, 23.6percent (45.8 percent) thanacross theState 50 issignificantly higherinBass Coast The proportion ofresidents aged over cent peryear over theperiod. annual population per change of2.21 cent). Thisrepresents anaverage increased per bypeople (11.6 3,071 (Census data), Bass Coast’s population at From 30June2012. 2006to 2011 population of Bass Coast was 30,367 of Statistics, theestimated resident According to theAustralian Bureau Population nemployment isjustunder5per f those aged 15years andabove, his isbelow theregional hire, employing his section ofWoorayl. included theincorporation ofasmall were amalgamated in1994.Thisalso Island,Phillip Bass andWonthaggi when thelocal governments of as theofficial nameoftheShire The nameBass Coast was adopted the population now reaching 30,000. Expansion hascontinued apace, with spurred significant growth inthearea. first bridge to Island Phillip inthe1940s established. Theconstruction ofthe many townships andvillages were to grow into theearly 1900s,when due to coal Thearea mining. continued to growth around Wonthaggi, largely land was openedfor selection, leading for farming andgrazing. Inthe1860s, coastline. Thecleared land was used beyond from several along ports the was shippedto Melbourneand primary industryofthearea. Timber In theearly 1800s,timber was the founding ofMelbournein1835. on theBass River shortly after the Another settlement was established permanent settlement inthestate. was set upat Corinella, thesecond back to 1826, whenamilitary outpost European settlement ofthearea dates * Estimated ResidentPopulation at 30 Agriculture ($138million) Tourism ($659 direct) million and Key industries– 52 percent Non-resident households – 29,000 Number ofrateable properties – Number ofBusinesses –8,358 Visitors –3.4 peryear million reserves –42 km Kilometres ofbeaches/coastal Area –865km Population –30,367* At aGlance highlights http://profile.id.com.au/bass-coast/ AustralianJune 2012, Bureau ofStatistics 2

5 | Bass Coast Shire Council Annual Report 2012/13

6 | Bass Coast Shire Council Annual Report 2012/13

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Y Change in number of people Estimated ResidentPopulation, Bass Coast Shire Resident population growth Employment status Employment Status +20,505 +28,505 +26,505 +30,505 +22,505 +24,505 Unemployed Employed Looking for work part-time Source: Australian Bureau ofStatistics, Census ofPopulation 2011(Usual residence andHousing, data) (%) ofpersons aged 15+ Looking for work full-time 2,000 Population by 5year groups 3,000 2,500 1,000 1,500 Hours worked not stated 500 0 Employed part-time Unemployed (total) Employed full-time Source: Australian Bureau ofStatistics, Regional Population Growth, Australia 2001 25,631 0 to 4 Employed (total) 5 to 9 2002 26,146 10 to 14 2003 26,528 15 to 19 Land Use

20 to 24 0 2004 26,832 25 to 29 30 to 34 Residential 2005 27,342 Parkland Agricultural 20 35 to 39 2006 27,502 40 to 44 45 to 49

2007 27,848 40 50 to 54 2008 28,291 55 to 59

60 to 64 60 2009 28,754 65 to 69 2010 29,460 70 to 74 Regional Vic Bass Coast Shire

75 to 79 80 2011 30,024 80 to 84 2012 30,367 85 and over 100

7 | Bass Coast Shire Council Annual Report 2012/13 8 | Bass Coast Shire Council Annual Report 2012/13 Community safety $4.84 & development $4.38 Community planning T * This ishow every $100you pay his illustration provides asnapshot For ofthebudget. details full visitourwebsite at www.basscoast.vic.gov.au S ome costs ofproviding ‘Waste &recycling’ services are also includedin‘Capital works’ and‘ in rates was spentin2012/13 Libraries $4.24 Aged care &disability $3.57 Culture, leisure &recreation $5.50 Waste &recycling *$12.63 Roads &transport $18.94 Public lighting$1.32 Environment $3.59 Tourism &economic development $4.99 building $5.04 Planning & Capital works $9.39

R unning Council’. interest payments $4.02 Loan redemption & Running Council $7.21 Family &children $1.08 Parks &gardens $9.27

community, now andinto thefuture. To maximise thequality oflife ofour Mission growth. development, tourism andeconomic balanced by sustainable andsensitive life andsense ofcommunity is significance where ourquality of as auniqueplace ofenvironmental Bass Coast Shire berecognised will Vision Vision, Mission &Values Values organisation. achievements, ourstaff andour We take pride inandpromote our Pride processes andservice delivery. We are committed to improving our Continuous Improvement relationships withcustomers. We continue will to develop effective Customer Focus than two hours drive from combination ofunspoiled coastline andpicturesque rural hinterland isless Bass Coast’s unique Melbourne. relevant information. staff. We provide accurate, timely and and respond to ourcommunity and Vision. We listen, understand, consult towards achieving theBass Coast We value andrecognise contributions Commitment respect. We treat people and withdignity Respect fair, honest,openandaccountable. We act andmake decisionsthat are Integrity

9 | Bass Coast Shire Council Annual Report 2012/13 10 | Bass Coast Shire Council Annual Report 2012/13 CEO’s Message generally borrows for capital projects level of$7.8 for million 2013.Council program. Thishasresulted inadebt financing its capital expenditure borrowed to $1million assist in During thefinancial year, Council within thisreport. in ourStrategic Objective pages Details ofcapital projects are included and justover onbuildings. $1million ofthiswas$8 million spentonroads on capital projects. Approximately CouncilIn 2012/13, spent$16.6million fund these capital works. operating expenditure inorder to related grants andcontributions) than revenue (which includescapital Council generates more operating control. Thesurplusoccurs because community assets underCouncil’s provides capacity to build orrenew result is a critical financial strategy that surplus. Sustaining asurplusoperating year operating witha$6.6million Council financial finishedthe2012/13 quartile for Victorian municipalities. Coast Shire remain inthebottom rates andcharges perproperty inBass per property for theyear. Average per cent inaverage rates andcharges This hasresulted inanincrease of5.9 the demandfor services andfacilities. rates asaffordable aspossible given has continued thetrend ofkeeping ratepayers are onfixed incomes, and The Council understands that many Finances faced. in dealing withthemanychallenges it contribution oftheoutgoing Council I want to acknowledge the 2013 –2017hassince beenadopted. new Council Plan covering theperiod Councillors for afour year term. A Councillor andtheelection ofsixnew 2012 resulted inthereturn ofone Council elections held on27October Council Plan 2009–2013. against theobjectives set outinthe fourth andfinal year of reporting This annual report represents the possible dueto oursuccess in Many ofthese projects were made the Inverloch Glade. Recreation Reserve andupgrades to Thompsonsto Reserve, Dalyston LifeSurf Saving Club,improvements access track from theCapePaterson construction ofthenew beach the Wonthaggi Recreation Reserve, drainage andirrigation system for landfill site, implementation ofnew improvements to theGrantville Dalyston Glen Forbes Road in Almurta, Island,Phillip extensive repairs on Road andSmithsBeach Road on strengthening andsealing ofCoghlan Centre, theCowes Town Square, Island Phillip million Early Learning during theyear includedthe$3.2 Major capital works completed other infrastructure, viable. community assets, suchasroads and renewal work inorder to keep vital we keep upthemaintenance and works are itiscrucial important, that ever growing community. While new providing services andfacilities to an faces some uniquechallenges in municipalities inVictoria, Bass Coast As oneofthefastest growing regional Capital Investment sub regional status. Regional Health Service hospital to and anupgrade oftheBass Coast health care service island onPhillip in theform ofanintegrated primary to argue for improved health services secondary education andcontinues exploration, improved access to post the moratorium oncoal seam gas Reserve,Island Surfing achieving the establishment ofthePhillip and arterial roads, supporting and maintenance ontheBass Highway our community, traffic management the impact ofproblem gambling in a range ofissues ofconcern including for itscommunity duringtheyear on The Council continued to advocate Advocacy years. as borrowings, that spananumberof be fundedby sources offunds,such asthese have along life andshould rate inBass Coast hasbeenbelow 4.5 percent, andtheunemployment more thanhalved from 9.7 percent to strong. Since 2001,unemployment has underlying economic health remains Desalination Project theShire’s and thecompletion oftheVictorian Despite theglobal financial crisis Economic Climate bargain agreement was finalised. outcomes. Athree year enterprise and improved occupational health to focus onleadership development training anddevelopment continues time equivalent positions. Employee during theyearFTE to 324.4 full- Employee numbers increased by 0.8 Staff the new financial year. declared commence andwill early in eastern entrance to Wonthaggi was upgrades andnew drainage for the Scheme, Wonthaggi to provide road the Graham Street Special Charge road improvements. project, Afurther provided underground drainage and South Dudley, Wonthaggi which Churchill Drive area ofCowes and Schemes inthePineAvenue and delivery oftwo major Special Charge projectsOther important were the Club ofInverloch. thanks to from thesupport theLions in thecase oftheInverloch Glade, attracting state andfederal grants, and

11 | Bass Coast Shire Council Annual Report 2012/13 12 | Bass Coast Shire Council Annual Report 2012/13 others. well strategies. assupporting the Bass Coast Planning S completing manyamendmentsto planning program commencing and its ambitiousstrategic land use R R Development Plan 2013-2017, a started work onanew E the Council Plan 2013-2017and Community H adopted itsnew Municipal Public Bass Coast S development. provide frameworks for sustainable of agriculture to theregion and documents identifytheimportance I R by Council, includingtheGippsland strategic documentswere adopted S Documents Policies andStrategic $131.8 million. annual events inBass Coast Shire is indirect financial impact of over 80 2011 showed that thetotal direct and local economy. Astudycompleted in and have asignificant impact onthe Bass Coast lifestyle and tourism profile Events are feature animportant of business environment. local businesses andimprove the traders to findways to promote work withbusiness associations and Council continue has,andwill to the state average since 2008.The policy’s andprojects. The“Speak up to engaging thecommunity onkey outlines theCouncils commitment Community Engagement Policy that Council hasadopted anew and Strengthening Community Engagement ntegrated everal policiesand important ural esponsible GamingPolicy anda egional Plan andtheGippsland ealth andWellbeing Plan, the L and T he Council continued U L and hire Council also E se se ngagement Policy, S U trategy, among se Plan. T conomic cheme as hese develop improvement plans. in detail to understand thedrivers and Council belooking will at these results with thescore falling from 52 to 47. result for Advocacy was disappointing, 52 in2013,compared The to 50in2012. Consultation measure, withascore of performance intheCommunity good’. Council also showed improved customer service as‘good’ or‘very 63% ofrespondents rating Council’s from 63 in2012to 68in2013,with showed asignificant improvement, (60). Customer Service score also slightly below thestate-wide average score for large rural shires and (57), two pointsabove full theaverage ‘good’ or‘very good’. Thisscore isalso view that Council’s performance is that 44% ofthecommunity isofthe from the2012result of55.Itindicates of 59 isasignificant improvement results. The Overall Performance Score five measures compared to the2012 show animprovement inthree outof 2013 Community Satisfaction Survey Bass Coast Shire Council results inthe Community Satisfaction Young Leaders. Australian oftheYear, andBass Coast Thank You, Australian andYoung ceremonies, includingaVolunteers’ members through various awards and contribution ofcommunity and recognises theextraordinary the community. Council celebrates contribution by manymembers of the recognition oftheoutstanding engagement andstrengthening is elementAn important ofcommunity Council Plan. and providing inputto thenew new Council at oneofthree forums of Bass Coast, by meetingwiththe tothe opportunity shapethe future community members andgroups S peak out”engagement provided with energy efficientglobes. the replacement ofall street lights emissions andwaste andhave begun our energy efficiency and reduce upgrade Council facilities to improve We also continue to review and community empowerment. emergency management and focussed onmitigation, adaptation, Climate change initiatives have agreed master plans. sensitively andinaccordance with and volunteers to manage publicland groups, other publicland managers to work closely withcommunity biodiversity. Council hascontinued environment andtheprotection of enhancement ofthenatural emphasises theprotection and Council’s visionfor theShire sustainability Environment and Chief Executive Officer Allan Bawden to ensure asmooth transition. appointment made by December 2013 new CEOandexpects to have an has commenced thesearch for a 19 years asitsCEO. TheCouncil leave the Council inMarch 2014after the Council inOctober 2013.Iwill retire after 33 years ofservice with Director ofCorporate Services will Coast Shire Council. DannyLuna, leadership andmanagement for Bass alsoIt will beayear ofchange in and renewing ageing infrastructure. ongoing challenges posed by growth The year ahead beshapedby will the The Future T A po he incoming Council was sworn Council election took place by than two hours drive from combination ofunspoiled coastline andpicturesque stal vote on27 rural hinterland isless Bass Coast’s unique Councillors in on31 Melbourne. O O ctober 2012. ctober 2012.

13 | Bass Coast Shire Council Annual Report 2012/13 14 | Bass Coast Shire Council Annual Report 2012/13 » » » » » » » » » » » committees: Council’s delegate onthefollowing Mayor –Leadbeater Ward Cr Veronica Dowman Outgoing Council Map ofShire

Community Liaison Group Victorian Desalination Plant Councils (SEM) South EastMetro Group of Peri UrbanGroup ofCouncils National Sea Change Taskforce (MAV) –substitute Municipal Association ofVictoria Human Resources Committee Management Group (GRWMG) Gippsland Regional Waste Network (GLGN) Gippsland Local Government Committee Bass Coast Environmental Review Australia Day Committee Audit Committee boundaries showing ward » » » » » » » » » » committees: Council’s delegate onthefollowing MayorDeputy –Hovell Ward Cr JohnDuscher committees: Council’s delegate onthefollowing McHaffie Ward Cr JaneDore Daly

Advisory Committee (RAJAC) Regional Aboriginal Justice Community Advisory Committee IslandPhillip Nature Parks Consultative Committee (ICA Inter-Council Aboriginal S Planning Committee Municipal Fire Management (MAV) Municipal Association ofVictoria Network (GLGN) –substitute Gippsland Local Government Committee Bass Coast Shire Place Names Management Planning Committee Bass Coast Municipal Emergency Australia Day Committee ( SEATS outh E ) ast A ustralian T ransport CC) S tudy tudy » » » » » » » » » » committees: Council’s delegate onthefollowing Townsend Ward Cr Ross Smith committees: Council’s delegate onthefollowing Anderson Ward Cr Gareth Barlow committees: Council’s delegate onthefollowing Thompson Ward Cr Peter Paul committees: Council’s delegate onthefollowing Churchill Ward Cr PhilWright

Corporation –Chairman West Gippsland Regional Library Liaison Group IslandPhillip Nature Parks Council Human Resources Committee Audit Committee Association (VLGA) Victorian Local Government Study (SEATS South EastAustralian Transport – substitute Management Group (GRWMG) Gippsland Regional Waste Human Resources Committee Australia Day Committee Audit Committee )–substitute (Townsend Ward), Mayor, CrClare LeServe (Leadbeater Ward), CrPhilWright (Churchill Ward) andCrKimberley Brown (McHaffie Ward) L » » » » » » » » » » committees: Council’s delegate onthefollowing November 2012. at theStatutory Meetingheld on14 Elected asMayor ofBass Coast Shire Mayor –Leadbeater Ward Cr Clare LeServe Incoming Council eft toeft right:CrA

Community Liaison Group Victorian Desalination Project Councils South EastMetro Group of Liaison Group IslandPhillip Nature Parks Council Peri UrbanGroup ofCouncils Network (GLGN) Gippsland Local Government Committee Bass Coast Environmental Review Human Resources Committee Management Planning Committee Bass Coast Municipal Emergency Australia Day Committee Audit Committee ndrew Phillips (T hompson Ward), CrBradley Drew (A » » » » » » » » » committees: Council’s delegate onthefollowing Meeting held on14November 2012. Coast Shire at Council’s Statutory Elected Mayor asDeputy ofBass Mayor,Deputy Hovell Ward Cr NeilRankine committees: Council’s delegate onthefollowing Churchill Ward Cr PhilWright committees: Council’s delegate onthefollowing Anderson Ward Cr Bradley Drew

Association (VLGA) Victorian Local Governance Study Seats (SEATS South EastAustralian Transport Management Group (GRWMG) Gippsland Regional Waste Human Resources Committee Western Port Biosphere Reserve Sea Change Taskforce Human Resources Committee Management Planning Committee Bass Coast Municipal Fire Audit Committee nderson Ward), CrN ) eil R ankine (H ovell Ward), CrJordan Crugnale » » » » » » » » » committees: Council’s delegate onthefollowing Thompson Ward Cr Andrew Phillips committees: Council’s delegate onthefollowing McHaffie Ward Cr Kimberley Brown committees: Council’s delegate onthefollowing Townsend Ward Cr Jordan Crugnale

Safety Committee Bass Coast Community Road Community Advisory Committee IslandPhillip Nature Park (MAV) Municipal Association ofVictoria Name Committee Bass Coast Shire Council Place Advisory Committee Community Safety andEvents Australia Day Committee Board West Gippsland Regional Library Consultative Committee Inter-Council Aboriginal Audit Committee

15 | Bass Coast Shire Council Annual Report 2012/13 16 | Bass Coast Shire Council Annual Report 2012/13 Highlights oftheYear » » » » » August 2012 July 2012 The SuperPages Bass Coast Business Awards isapopular annualevent thatpromotes local businesses andprovides agreat platform for networking.

over five days across Gippsland. international cyclists competing Remo,in San withnational and The Tour ofGippsland started farming. secondary studentsto dairy Australia program to introduce ‘Cows Create Careers’ –aDairy by Bass Coast businesses. Churchill andwas well represented Business Awards held in Council supported theGippsland Silverwater Resort. business inBass Coast, was held at evening, showcasing thebestof Business Awards gala presentation The SuperPages Bass Coast students from across Gippsland. government to secondary to promote careers inlocal ExpoatSkills Lardner Park, Council had astand at theJob » » » » » September 2012 November 2012 October 2012

Gippsland. travelled through various of parts The Great Victorian Bike Ride sculpting. event, story-telling andsand- Year ofReading’ withabeach closing activity for the‘National Inverloch Library hosted the Casey Stoner priorto retirement. Australian-born world champion visitors asitwas thelast race for attracted arecord numberof Prix at Island thePhillip Circuit The Australian Motorcycle Grand Lardnerat Park. the Gippsland WineAwards, held Council continues for itssupport the Shire. operators together from across TheNobbies,bringingbusiness at and Tourism Conference was held The inaugural Bass Coast Business Gippsland Cyclists from across theglobe compete intheTour of Sheene Memorial oftheAustralian Rideaspart Moto GP Students show theirexcitement for the10thannualBarry students to dairyfarming The ‘Cows Create Careers’ program introduces secondary

17 | Bass Coast Shire Council Annual Report 2012/13 18 | Bass Coast Shire Council Annual Report 2012/13 The AnnualKustom Nationalsin January proves to beincreasing inpopularity each year, gathering custom cars from across ofthecountry andinternational media » » » » » January 2013 December 2012

held across theShire. Australia Day celebrations were Island Circuit. display was held at thePhillip ‘Kustom Nationals’ custom car children. Centre openeditsdoors to IslandThe Phillip Early Learning access for people withdisability. these businesses were improving Good Business’ Awards to see how the ‘Bass Coast GoodAccess is visited nomineesandwinners of Inclusion Advisory Committee Members oftheAccess and beach activities. toabilities theopportunity try event, whichgave people ofall inclusive andaccessible beach South Coast Access Alliance beach was thevenue for the Cowes Beach Festival. Cowes » » » » » » February 2013 March 2013

town to delightthemanyvisitors. and saw great bandscome to Festival was held over four days The 20thAnnual Inverloch Jazz Wonthaggi. ownership –was held in to promote responsible pet Pet Expo–anannual event Bass Coast. Inverloch, thefirst of itskind for Indigenous Health Forum in Reconciliation Group ran an The Bass Coast SouthGippsland completed andstaff relocated. (Building 4)inWonthaggi was New office accommodation and outstanding improvement. excellence, excellence sporting work, leadership, academic responsibility, friendship,team who display qualities inrespect, The Awards recognise students in each school inBass Coast. Young Leaders Awards to leaders Council presented theannual advantagefull oftechnology. help local business operators take Workshop inWonthaggi to Council ran aDigital Retailing Classic features a50kmswim and4kmrun One ofourmanyannualathletic events, theCowes Australia DayCitizenship Ceremony Local residents become Australian citizens atthe2013 to abilitiesanopportunity all trybeach activities The Cowes Beach Festival inDecember gives people of » » » April 2013 The Phillip IslandThe Phillip JazzFestival hasbeenattracting musicians andjazzenthusiasts from around Australia for thepast10years

se Strategy.Use completion oftheDraft Rural Land process assist will inthe gathered through theconsultation submissions. Theinformation and received atotal of269 out, and11drop-in sessions, approximately letters 2,500 sent The consultation included Draft RuralStrategy. LandUse consultation process onthe Council undertook anextensive Strategy for Bass Coast. developing thenew Education in theShire, to beginwork in and groups involved ineducation to bringtogether all stakeholders in Bass Coast. Thepurpose was well-attended forum oneducation Council held asuccessful and days. 9,500 attendees over thethree Melbourne ExhibitionCentre, with was held again thisyear at the The Regional Victoria LivingExpo » » May 2013 June 2013

stakeholders andCouncil. of farmers, agricultural industry Engagement Group, consisting of thenewly formed Rural Council held thefirst meeting difficulties utilise publictransport. communication orreading those inthecommunity with pictorial bustimetables to help Bass Coast Shire Council launched Grand Prixbrings to Bass Coast each year the masses ofvisitors thattheAustralian Motorcycle The street festival inCowes provides entertainment for coastal livingandtourism inourregion Regional Victoria LivingExpoinMelbourneto promote Bass Coast Shire Council representatives exhibited atthe

19 | Bass Coast Shire Council Annual Report 2012/13 20 | Bass Coast Shire Council Annual Report 2012/13 Structure andPeople Structure Strategic Advisory Community and Development Planning and Environment Committee Economic

Mayor/Councillors Chief Executive Community Officer Corporate Services Audit Committee Infrastructure

21 | Bass Coast Shire Council Annual Report 2012/13 22 | Bass Coast Shire Council Annual Report 2012/13 A of corporate planning frameworks. substantial budgets anddevelopment developing andmonitoring with community andstakeholders, program management, working and delivering government policy, a wealth ofknowledge indeveloping Government Management andtheS H the development withprotection of the Coast given therapid growth of increasingly withinBass important Planning andenvironment issues are management, planning and building. environmental andcoastal H Director since S Coast’s Planning andE government andhasbeenBass experience instate andlocal H Hannah Duncan-Jones growing municipalities inVictoria. providing services for oneofthefastest challenges involved inplanning and Council policy andresponding to the sound advice to Council, implementing an organisation capable ofproviding Council, establishing anddeveloping responsible for theelected supporting L A A and innermetropolitan Melbourne. communities inboth regional Victoria years’ experience working indiverse in December 1994.A following thecreation oftheS S E A Allan Bawden Senior Management T ocal Government Management. xecutive hire Council since March 1995, s ChiefE dministration andqualifications in llan holds aMaster ofBusiness llan Bawden hasserved asChief annah’s experience inH annah’s responsibilities include annah Duncan-Jones has19years’ S S hire’s uniqueenvironment. hire andtheneedto balance xecutive O fficer ofBass Coast O ffice ofH eptember 2007. O llan hasover 37 fficer, nvironment tate tate ousing brings ospitality A llan is llan is hire

on arange oforganisational matters. organisation aswell ashighlevel advice of strategy andpolicy for the His role includesthedevelopment Governance andCustomer Service. Procurement, RiskManagement, Organisation Development, Property Valuations, Communications, Communication andTechnology, Revenue Collection, Information effectively. These includeFinance, enable theorganisation to function responsible for providing services that Corporate Services Director, Dannyis Government Management. As degrees inAccounting andLocal Chief Executive Officer. Heholds government positions including years’ experience inarange oflocal past 18years. Hehasmore than30 Bass Coast Shire Council over the of management positions within Danny Lunahasheld anumber Danny Luna Centres andtourism functions. oversees Council’s Visitor I investment to theS local businesses andattracting new assisting thegrowth andretention of sustainable economic development, management. environmental health andemergency family andaged services; local laws, recreation andleisure services; development; social planning; arts, S certificate inBusiness A in CivilE N E was appointed Community and years asI local shires. A Coast government experience at Bass S Steven Piasente conomic Development Director in teven isresponsible for community teven hasover 20years’ local ovember 2010.S eam S hire Council andformer ngineering andgraduate nfrastructure Director, he fter serving three H is role includesfostering teven hasadegree hire. dministration. S teven also nformation From top to bottom: Allan Bawden, Danny Luna, Steven Piasente Hannah Duncan-Jones, future generations. for thebenefitofcurrent and protect thecommunity’s majorassets long term asset management plans to S recycling andwaste collection services. roads, footpaths, buildings, parksand maintenance ofinfrastructure, including is responsible for theprovision and and Business A qualifications inCivilE and MelbourneWater. Felicity has the construction industry, T local government after working for Director on1July 2011.S S in various positions anddirectorates. experience at Bass Coast S Felicity has17years’ local government Felicity Sist he oversees thedevelopment of he was appointed I and Felicity Sist dministration. Felicity nfrastructure ngineering ngineering he came to hire Council elstra Staff numbers (FTE) Staff numbers(FTE) Staff GenderandStatus 37. Note are contained intheFinancial Report, Details ofsenior officers’ remuneration skills. councils andthedevelopment ofnew of comparable positions inother Consumer Price Index, salary packages on theirperformance, changes inthe salaries are reviewed annually based fixed terms ofupto five years. Their performance-based contracts with Senior officers are employed on and Performance R S eae21% Male Female Total Infrastructure Development Community &Economic 24.0 Planning &Environment Corporate Services CMT &Support enior emuneration ulTm atTm eprr Casual Temporary Part-Time Full-Time 33% O fficer ulTm atTm eprr Casual Temporary Part-Time Full-Time 3. 64.8 237.0 101.0 46.0 57.0 9.0 3% 22%

1.7 53.1 4.6 5.4 0 » » Numbers increased insome areas to: positions. FTE individuals approved to work in323.6 timelastAt thesame year we had 432 individuals approved to work inthese. were 324.4 positions with430 FTE positions. At30June2013there(FTE) equivalentthe numberoffull-time Employee numbers are measured by E

mployees impacts ofclimate change strategically address expected residential developments workloads that come withnew keep pace withincreasing 1% 6% 9.3 2.0 5.3 1.0 1.0 0.0 3% 11% . 108.0 13.3 112.9 3.3 29.8 8.5 0.2 1.3 0.0 40% 60% Total Total 324.4 64.7 9.0 » » where: Numbers decreased insome areas » »

provide better value to Council. business was outsourced to completed externally fundedprojects were Council asabusiness assure thelong-term viability of technology solutions thegrowingsupport demandsfor 23 | Bass Coast Shire Council Annual Report 2012/13 24 | Bass Coast Shire Council Annual Report 2012/13 and policiesat all Council sites. safety andcompliance withregulations implemented to ensure contractor safe systems ofwork have been being developed andseveral other Contractor processes induction are attending several training seminars. and managers across theorganisation contractor management, withstaff A strong focus hasbeenplaced on continuous improvement. and measured annually to ensure The actions betracked identifiedwill and OHSConsultative Committee. were workshopped withtheStaff strategies for each ofthekey drivers Wellbeing. Performance improvement Audits/Compliance, andHealth and Hazards/Injuries, WorkCover, Training, performance across five key drivers: Occupational Health andSafety (OHS) During theyear, we measured our Health andSafety Occupational staff inall areas oftheorganisation. strategy that isbeingwell received by billed service isanearly intervention organisation free skinchecks.Thisbulk Centre to offer staff across the South Gippsland Family Medicine Council isworking closely withthe workshops andfitness classes. management seminars, nutrition and exciting initiatives, suchasstress and Wellbeing Program andtrial new was used to build onourstaff Health health checksfor staff. Thisfunding dedicated approach to annual work from WorkSafe Victoria dueto our Council was awarded a$10kgrant government legislation. by Council policy andrelevant local made available to all staff asrequired Future refresher workshops be will service to theBass Coast community. together to continue to improve our andrespect,with dignity andworks of theteam feels safe, istreated environment where every member responsibility to create aworking as acore oftheircorporate part customer, andempowers all staff the rightsofevery employee and the value that Council places on These mandatory workshops reinforce diversity andequal opportunity. harassment, bullying, discrimination, organisation, andcovered theareas of Together workshops across the Code ofConduct andWorking we2012/13, developed anddelivered which are obligatory for all staff. In Conduct andWorking Together policy, principles isreflected inourCode of andEmploymentOpportunity (EEO) Our commitment to Equal Program Equal Opportunity Leaders. that isbeingpiloted withDepot Team 12-month Frontline Leadership Program We also developed andfacilitated a leaders from across theorganisation. involving 20current andemerging third leadership development program recent years. Thisyear, we launched a organisation in hasbeenapriority Leadership development across the service to thecommunity. experience to continue to improve knowledgewith theskills, and at Bass Coast aimto equipemployees Learning anddevelopment programs Learning andDevelopment 2011/2012 to 23.9 in2012/2013. This continued to decrease from 29.3 in the average days lost perclaim Whilst thenumberofclaims increased, 2012/2013. of claims increasing from 15to 18in challenge for Council withthenumber WorkCover claims continues to bea Preventing injuriesandtheresulting WorkCover % of remuneration 0.0% 2.0% 3.0% 0.5% 2.5% 3.5% 1.0% 1.5% WorkCover Premium

2009/2010 2010/2011 Premium $ 2011/2012 Plan isaligned to thecompetencies agreed withtheirsupervisor. This Development Plan, whichhasbeen Each employee also hasaPersonal saving $50,000. this training completely in-house, the year we developed andfacilitated anddiscrimination.opportunity During addresses bullying, harassment, equal then every three years. Thistraining employees uponcommencement and Together training iscompulsory for all Code ofConduct andWorking from ourCommunity Care Workers, WorkCover claims continue to come Most significant injuries andlong-term injury. capacity) asthey recover from their or return to work sooner (insome so that employees can stay at work identifying suitable alternative duties, has beenachieved by focussing on 2012/2013

$800.000 $600.000 $400.000 $200.000 $500.000 $300.000 $700.000 $100.000 Premium on year data hasremained steady. as apercentage ofourremuneration, theyear claims processed period. However, in the same staff numbers andremuneration levels, and year. Thiscan beattributed to anincrease in WorkCover premium over thelast financial This graph reflects theincrease inour $275,000. business days at aninvestment of activities involving in excess of1,000 430 staff attended formal training In thefinancial year more 2012/13, than education.further training, specialist conferences and seminars, compliance andOHS organisation, includingworkshops, training offered to staff across the These Plans form thebasisfor required intheperson’s role. WorkCover claims. incurring theadded related costs of physically intensive service, without Our challenge isto deliver this disabled members ofthecommunity. care services to thefrail, aged and who deliver homeandcommunity 25 | Bass Coast Shire Council Annual Report 2012/13 26 | Bass Coast Shire Council Annual Report 2012/13 operating throughout Inverloch Our Community Transport Services and transporting clients. days, themedays andmorningteas, a musicprogram, workshops, craft senior community members, including arangesupport ofactivities for our GroupsActivity Island onPhillip Volunteers involved withPlanned Centre. the Wonthaggi UnionCommunity Arts cemeteries, historical information and recreation reserves, public art, that helpCouncil manage halls, of management andfriendsgroups Volunteers are ofthecommittees part departments. community through various Council invaluable services to theBass Coast Approximately 250volunteers provide Volunteers of volunteers. the reliable andenthusiastic support Many programs would not runwithout of visitors to ourregion. the internet, to enrichtheexperience generally available inguidebooks orvia share tips andinformation not with passion andlocal knowledge Visitor Service Officers, volunteers throughout Bass Coast. Working as asset to Visitor Information Centres Volunteers are also animportant networks. appointments andmaintain social to attend undertake shopping, and disabled community members community buses that enable elderly without ourvolunteers. They drive the and Wonthaggi would not function available. many flexible working arrangements given consideration priority for the that these employees are to be relationships. We continually reinforce forsupport employees incare a strong focus onrecognition and Bargaining Agreement (EBA) with Council negotiated anew Enterprise During theyear, Bass Coast Shire community. economic fabric oftheVictorian relationships make to thesocial and that carers andpeople incare formally recognises thecontribution people incare relationships and promotes andvalues therole of The Carers Recognition Act 2012 Recognition Carers’ Financial Overview 27 | Bass Coast Shire Council Annual Report 2012/13 28 | Bass Coast Shire Council Annual Report 2012/13 » » » » » » T sustainable andaffordable manner. community’s needsinarealistic, the organisation inmeetingthe is reviewed annually whichguides place a10year financial plan that A to respond to these needs. that ithasthecapacity andcapability business planning inorder to ensure continue andCouncil isinvesting in our and thelarge numberofvisitors to and services from ourcommunity meet thegrowing demandfor works for hasbeento 2012/13 continue to regional Victoria. the f Bass Coast Financial » » » » » » » » his plan isdesignedto: s part ofthis,Councils part hasin required by thecommunity upgr E manner maint E mana E liquidit A surplus A community the s E s E S et at appropriate levels nsure that we can fundany nsure that ourassets are nsure that debtlevels are nsure that we can provide nsure that rates andcharges are astest growing municipalities in chieve strong working capital and chieve consistent operating hire. ade orcreation ofnew assets ervices required by our ged responsibly ained inanappropriate y positions es T S his growth isexpected to hire Council isoneof A O majorchallenge verview » » » » » » » Financial snapshot » » » » » » » Cash holdings $17.0 million Borrowings $7.8 and million; program; total$16.6 million capital works N relating to subdivisions); built by private developers (mainly contributed andinfrastructure T operating$6.6 million surplus. inexpenses;$60.8 million coming from rates andcharges; with $40.4 or59.9 million percent $67.4 inrevenue million items his includes$5.1 inland million et assets $491.4 million; expenditure items of$1.7 million. andanetdecrease million of $1.3 in of anetincrease inrevenue items variance ismade of$3.0million up T budgeted surplusof$3.6million. compares favourably to theoriginal Council’s surplus $6.6million fund these capital works. operating expenditure inorder to related grants andcontributions) than revenue (which includescapital Council generates more operating control. community assets underCouncil’s provides capacity to build orrenew S Net result is acritic ustaining asurplusoperating result he favourable budget surplus T al financial strategy that he surplusoccurs because Income Statement andvariance explanation report. Further details onrevenue variances are available intheattached Standard Standard Income Statement andVariance Explanation Report. Further details onexpenditure variances are available intheattached » » » » Major budget variances inexpenditure items include: » » capital projects completion timeframes. Government capital grants underbudget whichgenerally $1.3m, reflects Major budget variances inrevenue items include:

Assets written off$0.4m Depreciation over budget $0.9m Materials, services andsupplies underbudget $2.4m. Employee related costs underbudget $0.6m. Landcontributed andinfrastructure builtby private developers • Additional other contributions andreimbursements including: $2.5m Additional government contributions andreimbursements $0.6m. * * (mainly relating to subdivisions)$5.1m, offset by: Desalination Project deferred to $1.9m. 2012/13 Contribution to works from theVictorian a result ofscheme abandonmentsordeferrals. Special charge scheme levies underbudget $1.0mas Revenue (Total $67.4m) expenditure fortheyear Council revenueand $ Millions Expenditure (Total$60.8m) Surplus results for Past5Years 08/09 Otherrevenue 0.9% Interest 1.2% Contributions and reimbursements 11% Grants –capital 7.1% Grants -operating 12.5% User fees andcharges 4.9% S Rates (inclgarbage) 59.9% Share ofprofit, Regional Library 0.1% L Assets writtenoff 0.7% Finance costs 0.8% Otherexpenses 1.5% Depreciation 18.4% Materials andservices 38.7% Employee expenses 39.8% 16.3 oss onasset disposals 0.1% tatutory fees andfines2.4% 91 01 11/12 10/11 09/10 12.0 Financial Years 12.3 12.8 12/13 6.6 29 | Bass Coast Shire Council Annual Report 2012/13 30 | Bass Coast Shire Council Annual Report 2012/13 in theattached Standard Balance Sheetandvariance explanation report. Details onbudget variances for assets andliabilities for theyear are available » » » Explanation Report. available intheattached Standard Statement ofCapital Works andVariance Details onbudget variances for capital works expenditure for theyear are » » » » » » of $16.6moncapital works across Bass Coast asfollows: the services neededby ourcommunity. Council During2012/13, spentatotal infrastructure andother assets while at timecontinuing thesame to deliver Council aimsto ensure that itisable to provide andmaintain arange of Capital Works » net assets comprises: Council’s netassets increased by $13.7 to million Thisgrowth $491.8million. in The Balance Sheetrepresents theoverall wealth ofCouncil. In2012/13, Financial Position

accrued into theprevious year from thepayment ofCouncil’s unfundedsuperannuation whichwas Decreased non-current liabilities $4.0m.Thisreduction mainly results Increase inprovisions $0.5m.Thisrelates to provisions • Decrease intrade andother payables $3.4m • Decreased current liabilities $3.0m.Thisincludes: Increase inproperty, infrastructure, plant andequipment • Increase intrade andother receivables $0.6m • Increased non-current Thisincludes: assets $22.6m. Other (other structures, furniture andequipment) $1.0m Plant andequipment$1.5m Buildings $1.1m Open space (land, land improvements) $3.5m Drains $1.4m Roads, footpaths etc $8.1m Decrease intrade andother receivables $1.1m • Decrease incash andinvestments $7.3m. Thisincludesthepayment • Decreased current assets Thisincludes: $8.3m. leave &long service leave entitlements) for Council’s liability inrespect ofemployee annual Council (mainly by private developers) andasset revaluations undertaken by Council duringtheyear, assets contributed to assets of$21.9m whichoccurred asaresult ofcapital works of Council’s unfundedsuperannuation liability duringtheyear $3.9m Capital Expenditure for Past 5 Years 5 Capital ExpenditureforPast $ Millions $ Millions Net AssetsforPast5Years 08/09 344.4 08/09 14.4 91 10/11 09/10 414.6 09/10 17.4 Financial Years Financial Years 465.3 15.7 10/11 478.1 11/12 11 12/13 11/12 18.4 491.4 12/13 16.6 Report. the attached Standard Statement ofCashFlows andVariance Explanation Details oncash flows andbudget variances for the year are available in » » » from: decreased by $7.3m to $17.0m. Thisreduction incash assets hasresulted Council’sIn 2012/13, cash position (cash at bankandoninvestment), Cash Position year. Thishasresulted inadebtlevel of$7.8m remaining for 2013. capital expenditure program, andrepaid $1mfrom existing loans duringthe financialIn the2012/13 year, Council borrowed $1.0m to assist infinancingits Debt Levels

repayments andmovement intrustfunds)$0.3m. Net cash used infinancing (proceedsactivities from new loans less loan asset sales inflows) $13.8m. Net cash used ininvesting activities (capital expenditure outflows less general expenditure outflows) $6.8m. Net cash provided from operating activities (general revenue inflows less Loan LiabilityforPast5Years $ Millions Cash positionforPast5Years $ Millions 08/09 08/09 12.2 5.3 91 10/11 09/10 91 10/11 09/10 5.6 14.5 Financial Years Financial Years 7.8 21.7 11 12/13 11/12 11 12/13 11/12 24.3 . 7.8 7.8 17.0

31 | Bass Coast Shire Council Annual Report 2012/13 Performance Against Strategic Objectives

Progress against Council Plan This section includes highlights of activities aligning them to each of Council’s Strategic Objectives as set out in the Council Plan 2009–2013. This is the last year of reporting Annual Report Annual 2012/13 Council Shire Coast Bass |

against this Council Plan, with the incoming Council adopting a Plan for 2013–2017. 32 S trategic Advocacy O bjective 1 33 | Bass Coast Shire Council Annual Report 2012/13 34 | Bass Coast Shire Council Annual Report 2012/13 » Mayor Clare Le Serve awards 2013Bass Coast Young Leaders CharliRoss and Cale Farrel from Cowes Primary School.

Environment Plan 2012-2017 IslandPhillip Nature Parks InMarch 2013,Victoria’s first National Reserve Surfing was declared onPhillip National Reserve Surfing Network with theBass Coast Landcare strengthened itsrelationship Bass Coast Shire Council Education Forum Engagement Policy Review oftheCommunity Review What ofGamingPolicy thismeans Delivering thestrategy across Bass Coast with other key decisionsmakers community by forming alliances Represent theinterests ofour information to advocate for thebestquality We use will astrong voice andaccurate development ofthePlan andlater lodged asubmission onthedraft. Council was amemberoftheTechnical Review Committee duringthe Woolamai, SmithsBeach, Summerlands andCat Bay. Island. Thereserve ismade upoffour sites along Island’s Phillip coast: Cape continues to provide financial andin-kindsupport. into anagreement whereby BCLNnow employs itsstaff directly, while Council Bass Coast Shire Council andBass Coast Landcare Network (BCLN)entered Plan for theShire. Brought together education providers to commence work onanew Education and aimsto improve itsperformance inthisarea. Policy outlinesCouncil’s statement ofintent regarding community engagement A new Community Engagement Policy was adopted by Council in May 2013.The »

across theShire and knowledge ofcommunities Develop adeepunderstanding lifestyle for ourcommunity. »

outcomes for ourcommunity to achieve thebestpossible and effectively use ourresources Demonstrate strong leadership Status Deferred Complete Complete Complete Ongoing Complete

Achievements coal seam gas miningintheShire. decision to oppose anynew coal or Council hasmade aunanimous issue ofstrong community opposition. Coal Seam Gascontinues to bean municipality. constituents do not live withinthe particularly whenalmost half ofour the broad sectors ofourcommunity, strong working relationships with Council ishow to engage anddevelop One ofthekey challenges facing Challenges Council’s Policy onGaming. elementimportant whenreviewing information gathered bean will was ultimately unsuccessful, the community. While thesubmission this type ofgambling onthelocal the economic andsocial impacts of of thissubmission includedanalysing Wonthaggi. Work carried outaspart regarding poker machines in Gambling andLiquorRegulation submission to theCommission for During theyear, Council made a various community groups across Bass Coast Reserve Island projectThe Phillip National Surfing -the first ofitskind inVictoria - wassupported by Street. the Educational Precinct onMcKenzie Secondary College SeniorCampusto the transfer oftheWonthaggi Council continue will to work towards new GamingPolicy. inform thedevelopment ofCouncil’s gambling onthelocal community, will with data gathered ontheimpact of The knowledge collected, together gambling withall relevant stakeholders. extensive consultation ongaming and Council also plans to undertake project. development ofthisvery important of community members through the get involvement withabroad range new andexciting ways to ensure we engage withthecommunity insome Centre Plan. We belooking will to projects, includingtheCowes Activity number ofconsultation plans for Council iscurrently working ona Year Ahead ceremony atCape Woolamai Beach on16March 2012 Reserve Island The Phillip National Surfing was formally declared ata » » » results: Community satisfaction survey Indicators:

meetings outofapossible ten Local Government Network Attended nineGippsland 5 points) Advocacy was 47 points(down 55 points(up2points) Community consultation was 35 | Bass Coast Shire Council Annual Report 2012/13 36 | Bass Coast Shire Council Annual Report 2012/13 Good Governance S trategic O bjective 2 » »

Fraud and Corruption Control Plan Review ofCouncil Decisions Inspectorate Audit Local Government Investigations andCompliance consultations, please refer to page 63 transport plans andwaste services. For atable of major projects, includingspecial charge schemes, Community consultation was carried outfor all Improved telephone system functionality Telephone communication system upgraded Preparing for Climate Change Improving ouremissions reporting Council’s leadership group developed aCorporate Planning Framework ImprovedDeveloped asset aCorporate handover procedures Planning Framework to therelevant teams for service Adoption ofnew asset handover procedures development oftheAsset Improvement Plan Adoption ofnew Asset Management Policy and Delivering thestrategy We manage will ourresources effectively, keep the services provide affordable andaccessible Manage ourassets andriskwell to based onsound information Fair andequitable decisionmaking community engaged, listen to ourcommunities' concerns to create positive outcomes. »

democratic process toopportunities participate inthe Provide access to andcreate A Fraud andCorruption Control Plan was adopted. identified. monitoring andprogress reporting. for Opportunities improvement were The internal auditreviewed theprocesses for allocating resources, areasAll ofnon-compliance have beenaddressed. The auditindicated three areas ofnon-compliance, whichinclude: with 27testing topics from theLocal Government Act 1989. conducted anAuditofBass Coast Shire Council’s level ofcompliance The Local Government Investigations andCompliance Inspectorate considered for majorprojects. Council ensured that theviews ofthecommunity were understood and developing acoastal assets register. climate change framework andidentifywork adaptation onrisk, and Council began atwo year climate change project to develop further the and transition to alow carbon future. footprint, andenable usto target whichfacilities we can improve further We now have ongoing, accurate reports that helpto track ourcarbon Council’s Vision. that shows how strategic documentslinktogether to achieve the delivery, maintenance and/or management. ensure that theobjectives oftheA MA T and existing infrastructure assets. meeting of12December T 2012. T What thismeans he he » » » » » » » V

A A Councillor Ordinary Returns Senior Officer Contracts 95A) (Section Special Committees 81,86,87 (Sections 98) Improved reporting officer relationship ‘Follow me’ extension to enable consistent phoneextension to Improved voice mail Enhanced call management STE sset sset Management Policy was adopted by Council at itsordinary P program. I I mprovement Plan was developed andreviewed through the mplementation oftheA he Policy guidesall work related to new sset Management Policy are beingmet. sset »

I mprovement Plan will meet theirneeds value for money services that citizens anddeliver arange of Understand theneedsofour Ongoing Ongoing Completed Ongoing Completed Ongoing Complete Complete Complete Complete Status 37 | Bass Coast Shire Council Annual Report 2012/13 38 | Bass Coast Shire Council Annual Report 2012/13 assets inasustainable way. Council’s existing andfuture physical information required to manage all of systems andasset management to I risk. community andminimisingexposure future service delivery needsofthe while meetingthepresent and whole oflife costs ofitsassets, enable Council to optimise the T infrastructure andassociated assets. for thelong-term management ofits December 2012provides aframework adopted by Council at itsmeetingin future. TheAsset Management Policy our community, now andinto the maximising thequality oflife in to service supporting delivery and is acore Council andcritical function Prudent management ofthese assets excess (as of$500million at 1July 2012). and other physical assets valued in network ofroads, drainage, property Shire isunderpinnedby anextensive and cultural wellbeing ofBass Coast The economic, social, environmental Management Policy Adoption ofAsset A he objective ofthispolicy isto chievements t covers theprocesses, improve. target whichfacilities we can further carbon footprint, andenable usto accurate reports that helpto track our generation. We now have ongoing, vehicle use, electricity, andwaste information related to emissions from together all ouraccounts and finalised amajorproject bringing In 2013,Bass Coast Shire Council emissions data Consolidation of fully completed. completion rate and93 projects were Council achieved a93 percent average year. Despite theincreased workload, the program listed 140projects for the being added, by theendofyear landslides projects andhighpriority year andunexpected events suchas carry over projects from theprevious program included88projects, dueto While theoriginal capital works more than$25million. Bass Coast, withanoriginal budget of significant capital works program for saw2012/13 theimplementation ofa Capital Works program Delivery ofasignificant commencing infinancial year 2013/14. entrance into Wonthaggi, withworks infrastructure for theeastern and upgrade ofroad anddrainage scheme see will theimprovement Scheme was declared by Council. The The Graham Street Special Charge provision ofunderground drainage. of unsealed urbanroads, plusthe areas includedsealing over 4.7km Charge Scheme.Theupgrade ofthese the SouthDudley Estate Special Special ChargeCowes Scheme,and Avenue andChurchill Drive Area, major upgrade projects –thePine saw2012/13 thecompletion oftwo Special Charge Schemes renew those assets we already have. assets andtheneedto maintain and Council isto balance theneedfor new A significant ongoing challenge for Challenges » » » » » » » I

ndicators: Number of Section 223submissionNumber ofSection processes held: 8 Number ofpoliciesadopted orreviewed: 6 Number ofreports requiring adecision,considered by Council: 127 Respond to 13,000customer requests Answer 77,000 phonecalls Record, distribute andrespond to over 108,000items ofcorrespondence Customer service was 68points(up2points) • Overall performance was 59 points (up2points) • Community satisfaction survey results: » » Year

resources. greater efficiencieswithlimited processes can beimproved to gain which looks at how systems and program for Strategic Planning, participating intheMA Council hascommitted to more efficientdata collection. registration system to assist with Developing animproved animal Ahead Ahead V’s STE V’s P » » »

Strategy. Development ofaCorporate Project. Government Framework Reporting Participation intheLocal from across Australia. collaboration with23councils benchmarking project in Carry outanorganisational 39 | Bass Coast Shire Council Annual Report 2012/13 40 | Bass Coast Shire Council Annual Report 2012/13 Environmental Sustainability S trategic O bjective 3 » Ensure thenatural assets ofBass Coast are promoted

Fleet review Approximately 10,000trees andplants were planted across 40sites inBass Coast. Tree planting program programs Weed andrabbit control changeover Sustainable street lighting Carbon targets Network partnership – Bass Coast Landcare Bass Coast Shire Council Further development ofClimate Change Framework withafocus onmitigation, Climate Change Project Review Crown LandManagement Scenic Estate annexation Foreshore encroachment/ strategy Delivering the and managed inasustainable mannerso they can be the natural environment Plan for thesustainable future of What thismeans wherever possible. purchases vehicles withsmaller engines(4cyl) ornew technologies (hybrids) order to minimise theCO Council continue will to sustain andimprove management fleet practices in Cape Paterson andInverloch Cowes, Silverleaves, Newhaven, Rhyll, CapeWoolamai, SmithsBeach, Coronet Bay, This work isdoneinpartnership withCoast groups Action at Ventnor, RedRocks, measures across Bass Coast Council andLandcare carry outanannual cycle ofpestplant andanimal control Council’s by lightingbill almost $100,000each year energy Thisisset to efficientlighting. halve emissions andreduce Bass Coast Shire In 2012-13Council finalised theplanning to replace all street lightsinBass Coast with emissions Greenhouse andEnergy to methodology Reporting record, track andreport onour We have improved ouremissions data collection andadopted theNational farm-scale composting Landcare undertook aseries offarm workshops focussing onrevegetation and encourage sustainable farm management practices. Over thecourse oftheyear The Bass Coast Landcare Network works closely withover 1000members to adaptation, emergency management andcommunity engagement. management andservice delivery. land management arrangements could beconsolidated to improve on-ground Council undertook areview into itsCrown land assets to identifyareas were Council isthemanager ofalarge amountofCrown land. Duringtheyear, for thevision. appreciation ofthenature environment. There isconsiderable community support Scenic Estate, Beach, Surf Island, Phillip to beused for conservation andfacilitate In April2013,Council declared itsvisionfor theCouncil-owned land within public reserve. landholder oroccupier advances theuse ofland from private land into anabutting Encroachment orannexation into areserve isthepractice whereby aprivate enjoyed now andby future generations. »

community sectors business, industry, farming and environmental practices for Encourage sustainable 2 emissions andthelifecycle costs Council ofthefleet. »

management services environmental andresources Provide andassist bestpractice Ongoing program ofwork Ongoing asacontinuous Complete for 2012/13 program ofwork Ongoing asacontinuous Complete for 2012/13 Ongoing continuous reporting Ongoing interms of Complete for 2012/13 valuable relationship Ongoing interms ofthis Complete for 2012/13 Ongoing Complete Ongoing – Ongoing Program ofwork –CompleteReport Status

41 | Bass Coast Shire Council Annual Report 2012/13 42 | Bass Coast Shire Council Annual Report 2012/13 is responsible for new infrastructure in along theBass Coast. in over 42km offoreshore reserves access stairs, toilets andplaygrounds Bass Coast management Coast andbushland building. buildings, andlightingupgrade inone of efficienthanddryers intwo windows installation inonebuilding, walls andceiling, anddouble glazed panel system, improved insulation in including installation ofa5KWsolar s T Energy Efficiency Program Low CarbonCouncil – half of2013. installation commencing inthesecond three stages, withthefirst stage ofthe T instead ofinto thesky. toward theground, where itisneeded, meaning that the lightisdirected comparedspill to theolder type, community asthey have less upward increased lightingquality for the T three year project. funding theremaining $337,742 for the towards theproject, withCouncil T E 1 oftheFederal Community in obtaining agrant through globe after Council was successful upgraded to amore efficienttype of S almost $100,000each year. Coast roads each year –andreduce Bass of removing almost 200cars from the t E Lighting Project – Sustainable Street- Low CarbonCouncil A f or themaintenance ofpaths, tracks, o halve emissions –theequivalent everal Council building upgrades, fficiency Program (C nergy efficientstreet lightingisset treet lightsinthe his ongoing program delivered he new beinstalled lightswill over he new also lightswill achieve he Federal Grant contributed $291,747 chievements S hire Council’s by lightingbill S hire Council isresponsible S hire be will EE A s well, Council P). E R nergy ound T community engagement. emergency management and focusing onmitigation, adaptation, on aclimate change framework change project, whichaimsto deliver 2013 saw ofCouncil’s thestart climate Climate change region. impacts ofclimate change for our help usto betterunderstand the coastal hazard assessment that will government agencies onalocal neighbouring councils andstate as in ourmajorbushland reserves, such We undertake similar works each year climate change strategy. carbon emissions, akey aimofour improve biodiversity andabsorb Woolamai last year along pine trees were removed at Cape these areas. A T A E A R Coast of manyvolunteers organised through planted by Council withtheassistance over 10,000plants andtrees were in conjunction withtheCountry Fire reserves for thefire season each year, their place. range oflow lying indigenous plants in Group have beenactively planting a indigenous species. revegetationand undertaking with removing pestplants andweeds, includes managing vegetation – Managing foreshore reserves also ramp.mobility Cowes foreshore to upgrade anall- foreshore area, andwork doneonthe of new gravel tracks intheKilcunda splanade, andtheCoast atepayers Groups. his year we have worked with his work includespreparation ofthe s well asgreening ourcoasts, trees s anexample ofthiswork, several uthority. T hompsons A ction and ction T his year saw thecreation R eserve in R esidents and I n thepastyear, A I T nverloch. he ction ction a r prioritise thework. sites identified. the riskto thepublicofvarious assessment protocols andassessed We have followed Council’s risk encroachment. rehabilitate sites that were to subject remove unauthorisedand objects Council hasrunaprogram to I to publicsafety andbiodiversity. practice can result innegative impacts or other buildings inareserve. equipment, etc) orplacing ashed (eg firewood, outdoor settings, play a local beach, storing private items reserves, creating anaccess track to conducting unauthorised planting in to establish orexpand alawn, include clearing native vegetation of encroachment/annexation publicreserve.an abutting extends theuse ofprivate land into a private landholder oroccupier E Encroachment/Annexation 15 sites inpreparation for revegetation. bins andrubbish,were removed from caravans, sheds,trampolines, compost to various reserves anditems suchas indigenous plants. on rehabilitating thesites using compliance. Council hasthenworked them to remove unauthorised items. sent to therelevant landholders asking Ventnor and 230 sites at to deal withthe issue. planting in2013/14. spraying weeds inpreparation for unauthorised items removed and sending letters to landowners, getting consisted ofpreparing asite register, I T T Mo n 2012/13, 144 siten 2012/13, visitswere done n 2011,Council endorsed apolicy o da ncroachment orannexation into his hasresulted inahighlevel of eserve isthepractice whereby st ofthework duringtheyear te we have obtained data from S ilverleaves, Cowes, S miths Beach andletters T his hashelpedusto S ince then, E xamples S uch

Environment Plan. around carbon beincludedinthe will revisit targets andstrategic indicators track against thetarget Work set. to making itdifficultto accurately municipality andintheorganisation, include population growth within the landfill. These targets failed to organisation, includingtheGrantville greenhouse emissions across the In 2006we set targets to reduce our – reduction targets Low CarbonCouncil Challenges ** tCO carbon emissions Organisational Data for thelast quarter was not available at thetimeofprinting. Thisfigure only covers quarters (July-March). 1-3of2012/13 » » » » » » Community satisfaction rating on: Indicators:

2 Work with10Landcare and13Coastal Groups Action Manage andmaintain over 42 kmofcoastline Appearance ofpublicareas: 70 points(up3points) Waste management: 63 points(nochange) Waste to landfill: 23,521 tonnes Kerbside recyclables: 4,279 tonnes e 000 070 080 091 001 011 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2000/01 028NA / 0932,0 25717,693** 22,557 21,805 20,903 N/A N/A 10,238 processes andconsideration. are now to subject Council planning land management. These actions Council could take to improve Crown identified arange ofactions that and service delivery. Thereview to improve on-ground management arrangements could beconsolidated identify areas were land management review into itsCrown land assets to During theyear, Council undertook a the land parcels hascaused confusion. other land managers orthesizeof region. Attimes,theproximity of other land managers across the amount ofCrown land, along with Council isthemanager ofalarge Crown land management » » » » » Year Ahead

improvements. and fundwalking tracks andother plan, undertake on-ground works, Scenic Estate –Finalise alandscape framework for action. Sustainable Water Plan and clubproject.efficient sporting research project andenergy working onenergy efficient Change Alliance partnership: South EastCouncil’s Climate Efficient Buildings Project. Low carbon Council: Energy and adaptation plan. Climate change: Riskassessment 43 | Bass Coast Shire Council Annual Report 2012/13 44 | Bass Coast Shire Council Annual Report 2012/13 Business Prosperity than two hours drive from combination ofunspoiled coastline andpicturesque rural hinterland isless Bass Coast’s unique S trategic Melbourne. O bjective 4 » »

salsmn faRrlEggmn ru TheRural Engagement Group comprising farmers, other agricultural Establishment ofaRural Engagement Group business andtourism associations thedevelopmentSupport ofstrong Aprogram ofvisitsto local businesses inconjunction withastate Relationship-building withlocal businesses Awards Hold theannual Bass Coast Business year andthroughout theShire Encourage events to bespread across the Tourism Profile Release ofthereport –Bass Coast Shire social benefitsofevents community to maximise theeconomic and Work Thedocumentprovides withthebusiness sector and policy direction for land use planning across the Gippsland Integrated LandUse Plan Strategy Development ofCouncil’s Rural LandUse speed broadband businesses aboutthebenefitsofhigh Increased engagement withresidents and Expo Participation intheRegional Victoria Living operators developmentSkill for local business Delivering thestrategy lifestyle opportunities economic development and events andservices that support infrastructure, land use planning, andencourageSupport investment intheregion Aid business development and increases wellbeing andprosperity intheS We create will aneconomic environment that What thismeans affecting thesector. Itheld aninitial meetinginJune2013. industry stakeholders andCouncil representatives isaforum for issues works hard to thedevelopment support oflocal associations. communicate withoperators abouttraining andadvocacy issues. Council Strong business andtourism associations provide anavenue to assistance available. government representative to gather information andadvise ofany promotion through associated media. review andrefine their business operations aswell asreceive considerable The Business Awards provide for anopportunity local businesses to year andlevel outthepeaks andtroughs ofseasonal visitation. Council staff work withevents organisers to schedule events across the servicing resources appropriately. This report provides valuable data to assist Council to allocate visitor order to maximise social andcommercial benefits. Assist businesses andcommunity groups to get involved withevents in participate strategic inimportant projects intheregion. Gippsland Region.Itprovides to theopportunity leverage funding and business operators isofgreat benefitto the Shire. Having aRural Strategy LandUse whichprovides clarity for investors and National Broadband Network (NBN). Ongoing program oftraining andeducation aboutthebenefitsof on anannual basis. residents andbusiness operators. Council plans to participate inthisevent Conference andExhibitionCentre, to promote Bass Coast to prospective Bass Coast was represented at thethree-day Expoat theMelbourne businesses. for local business operators. Council sees to thisasvital support local as well asgovernment bodiesto facilitate training development andskill Council continues to work withlocal business andtourism associations »

the area increase theeconomic benefits to improve visitor satisfaction and numbers across thewhole year, Achieve aspread ofvisitor »

partnerships Development ofbusiness Status 2012/13 Complete for Ongoing Ongoing 2012/13 Complete for Ongoing Completed Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing hire. 45 | Bass Coast Shire Council Annual Report 2012/13 46 | Bass Coast Shire Council Annual Report 2012/13 » » » including training sessions onarange oftopics, roll These activities included out. while waiting for thecomplete NBN effective use ofexisting technologies with theaimofpromoting more benefits ofhigh-speedbroadband, community members aboutthe to inform business operators and range ofactivities were undertaken Broadband Engagement Plan. A in implementing theGippsland with other Gippsland Councils Bass Coast Shire Council participated available. fibre norwireless connections be will are available inareas where neither also underway, andsatellite services towers for wireless connections is estates. Theinstallation ofnew optic fibre now live insome new has commenced inBass Coast, with The roll outofhigh-speedbroadband speed broadband engagement abouthigh- Community andbusiness Achievements

e-marketing andmanymore topics Cloud computing Effective use ofsocial media 22.63 percent. this year compared to last –down number ofjobads inthelocal papers evidenced by thereduction inthe activity intheShire hasslowed, asis As aresult, theoverall level ofbusiness relatively periodoftime. short discretionary income left theShire ina large numberofpeople withhigh Desalination Project meant that a the completion oftheVictorian state level andnationally. Inaddition, a numberofindustrysectors both at economic slowdown experienced in Bass Coast was also impacted by the Economic slowdown Challenges » » recorded afall intheaverage numberofjobadvertisements: For theperiodJuly 2012–June2013over previous year, theBass Coast region Community satisfaction rating: Indicators:

ecads 14919 13340 -$8,432.07 $193,334.00 -$154,725.50 $184,901.93 $987,998.50 Merchandise $833,273.00 Tickets Accommodation Visitor Information Centres –gross sales comparison Australia Victoria Bass Coast region compared2012/13 to 2011/12 Change innumber ofjobadvertisements point) Business andCommunity Development andTourism: 65points(down 1 Planning for population growth: 52 points(up1point) 178358 178130 $202.86 $1,718,113.00 $1,718,315.86 hsya atya Change Lastyear This year -30.32% -38.37% -22.63% » » Year Ahead

Development Plan. Development oftheEconomic competitive. the changes necessary to remain market strengths andimplement industry sectors to identifytheir ahead isto thevarious support Bass Coast’s challenge for theyear Cohesive Communities than two hours drive from combination ofunspoiled coastline andpicturesque rural hinterland isless Bass Coast’s unique S trategic Melbourne. O bjective 5 47 | Bass Coast Shire Council Annual Report 2012/13 48 | Bass Coast Shire Council Annual Report 2012/13 » by managing thebuiltenvironment andencouraging

We improve will lifestyle andoptions opportunities Community events World Environment Day Memories ofWonthaggi Book Heritage Workshop Acquisitive Program Art for Support festival, arts whichhad 20events inBass Coast during Creative Gippsland; Gippsland Festival Arts brochureArts Asculpture by David Kopelman was installed at theCoronet Bay BMX Sculpture, Coronet Bay BMXtrack. TownCowes Square component publicart project:Public art Seam Fruit andVegetable Project Healthy Communities Initiative Delivering thestrategy and learning activities participation inarange oflifestyle Maximise for opportunities What thismeans wide range ofactivities. events that created for opportunities residents to participate ina CouncilIn 2012/13, provided grants over supporting 20community the event at RemoRecreation theSan Centre. local schools. InNovember 2013,eightprimaryschools took in part Each year, Council organises aWorld Environment Day Expowith Wonthaggi collection ofpersonal stories across the100years. Publication andlaunch ofCentenary project Memoriesof Complete Workshop withBass Coast Heritage groups aboutdisaster planning. painting Kooyoora 1. groups andthepublic.Winnerfor 2012was JohnAdamfor his Bass Coast Acquisitive Program Art iswell supported by community in Bass Coast. May 2013,andextra for support Gatescape, withtwo prizewinners events, workshops andartists. Annual publication withover 60events, promoting local arts BMX track. Wind by David artist Fincherwere installed on25October 2012. byHarmony Bells DrAnton Hasell, andsculptured seat Wave and Wonthaggi’s miningheritage. , whichwasShaft installed theprevious year. Both works relate to at theWonthaggi Centennial Centre to withsculpture partner Seam, asculpture by ShaneCargill andMarinMoore was installed small communities via general stores. Victorian government funded. Project to increase access to fresh fruitandvegetable suppliesin Government funded. foractivities, includingLift Life andHeartmoves. Commonwealth Provision for ofopportunities healthy eating andfitness »

the community health, safety andwell-being of servicessupport necessary for the Facilitate balanced andintegrated cohesive communities. » »

community facilities that are neededby the Provide infrastructure and statutory requirements in linewithcommunity needsand Manage development andgrowth Status Complete Complete Complete Complete Complete Complete Complete Complete Complete 2013 Ongoing to December Ongoing to June2014 lifestyles across theregion forLift Life includedinthe Healthy isoneofthe fitness activities Communities Initiative promoting healthy Policy andappointment 86SpecialSection Committees ofCouncil Kilcunda Relocation ofMobile Library site at Reserve andWimbledon Heights New playgrounds installed at McMahons Reserve No.2Oval Reserve Oval andWonthaggi Recreation Installation ofdrainage at Bass Recreation Centre Construction Island ofPhillip Early Learning Citizens Centre half thecar parkat theWonthaggi Senior Redesign, construct andconcrete seal Kindergarten Renovate and extend Wonthaggi North Pet Expo Program Childhood andSchoolImmunisation Municipal Fire Management Plan Summer Safety Campaign at homesafely. younger people to withdisabilities remain Services to frail, support elderly and Deliver HomeandCommunity Care Delivering thestrategy What thismeans community facilities andassisting Council inanadvisory role. 86CommitteesAppointment ofSection for themanagement of adjacent community facilities. Provision ofsafer access to thelibrary service andenhancement of Fun new playgrounds for thelocal communities to enjoy. year. facilitiesHigh quality sporting available for use 12monthsofthe to residents ofCowes and surrounds. kindergarten, long day care, andmaternal andchild health services The provision ofintegrated children’s services including the building. A safe andaccessible car parkfor theSeniors andother users of kindergarten. Address requirement for universal hours for 4-year-old in Wonthaggi. Expo to promote responsible petownership was held inMarch 2013 were immunised. preventable diseases through vaccinations. 2,067 children In2012/13, The purpose oftheprogram isto protect thecommunity from associated withstructures andchemicals. The plan hasbeendeveloped to review bushfire riskandfire risk from Nov 2012to Feb 2013. Programs to promote safe behaviour amongvisitors to theShire 26,001 hours ofhomecare delivered. health andsocial benefitsof community gardening Wonthaggi Volunteer Coordinators, LindaandLorraine, enjoy the Status Completed Completed Completed Completed Complete Complete Ongoing Ongoing Ongoing Complete/Ongoing Complete Complete 49 | Bass Coast Shire Council Annual Report 2012/13 50 | Bass Coast Shire Council Annual Report 2012/13 C Country Fire Act Authority 1958. all requirements ofsection55Bthe audited by theCF a signatory to theplan, together with Police. Vic Parks, Bass Coast of Department includes: Country Fire managers from across the by government agencies andland the result ofcontinued collaboration about assets andfire history. to capture local further knowledge engagement carried outinearly 2012 following theextensive community for bushfire hasbeenstrengthened chemicals. fire associated withstructures and was expanded to includetheriskof solely onbushfire thenew risk, Plan While thePlan originally focused Coast Municipal Fire Management Plan. Committee –completed thenew Bass E committee of theMunicipal Pl T Management Plan The Municipal Fire childcare. kindergarten program and56in of 106children –50through the T meeting spaces. parenting programs andcommunity for playgroups, specialist services, old. for children aged upto sixyears Maternal andChild integrated early learning programs and February 2013. T Learning Centre IslandPhillip Early A S S E T nvironment, Phillip mergency Management Planning outh Gippsland Water. P he Municipal Fire Management Plan is he Municipal Fire Management he Centre caters for amaximum he Phillip entre was officially openedin anning Committee –asub- A chievements R oads, Parks Victoria, andVictoria T usnet, Westernport Water and he Centre also hasfacilities E ach oneofthese agencies is T I sland he section onplanning T S he Centre provides ustainability and ustainability S E A hire Council, arly in2012andmet H I sland ealth A L uthority, earning T he Plan was S N S hire. ature ervices T his Pl Gippsland Catchment Management includes representatives from the the municipality. andstormthe impacts offlood on Committee to look specifically at subcommittee set upby theMunicipal Bass Coast Municipal Flood Flood Emergency Plan Bass Coast Municipal and thecommunity hasbeenpositive. General feedback from tourism groups T T for rental to sixormore guests. holidayinspect houses that are available Wellbeing Act 2008to register and Bass Coast Registration Scheme Bass Coast Holiday House program. wide messaging ofthe T recover from, emergencies. flood be used to plan for, respond to, and the understanding impacts across offlood experiences, knowledge and T A S S E makers to the complaints made by unhappy holiday number ofhygiene andcleanliness noise, overcrowding andlitter. related to holiday houses, suchas in reducing thenumberofcomplaints impl mergency Management Planning hire Council, Victoria Police, West tate he Plan also linksinto thestate- he Plan hascollected the here hasalso beenareduction inthe he registration scheme hasassisted uthority andMelbourneWater.uthority an was developed by aspecialist S emented thePublicHealth and hire into adocumentthat can E mergency S hire Council has H ealth Department. ealth Department. T S he committee ervice, Bass Coast SES Floodsafe E mergency » » » » » » 2012/2013 included: Programs andprojects delivered in Group (B as thePhillip Victoria andcommunity groups such Council, Victoria Police, T for projects from Vic T pedestrians withinBass Coast. environment for all road users and promote strategies to provide asafe community. government agencies andthe of representatives from Council, S T Road Safety Committee Bass Coast Community and financi » » » » » » r af he Bass Coast Community he committee receives funding ansport ansport ety Committeeety ismade up reaccredited inBike 11 local schools trained and 12 teachers andvolunteers from three years. committee take will for thenext form thestrategic direction the The findings from thisanalysis will and s A and conjunction withthe Cowes and MapsMobility for Wonthaggi, Development andproduction of Wonthaggi, Cowes and mobilit R safety apparel the benefitsofmotorcycle riding World S in Cowes, Bass Coast was ondisplay duringtheMotoGP T E Maintenance onthe Bike by local schools ducation trailer andbicycles used how andat thetrack for the oad safety sessions for motorised he detailed analysis ofrecent fatal I R nclusion Program erious vehicle crash data. U oad A S G). y device owners in al and in-kind support fromal andin-kindsupport uper Bikes promoting ccident Commission ( I ts aimisto develop and I S sland Bicycle af I nverloch in e Gippsland trailer R oads andthe E A ducation A R mbulance gricultural ural U I R nverloch sers oad A ccess TA C), supported bysupported theHealthy Communities Initiative Community Gardens across Bass Coast Shire are services to match demand. beto will 2013/14 maintain thelevel of clients.Thechallenge2,500 intheyear for theprovision ofservices to its finalised theyear withnowaiting list The HomeandCommunity Care Team maintenance ofthese typeoffacilities. there isnogovernment assistance for participation iscostly to Council and foropportunities community Senior CitizensCentres –to maximise facilities –neighbourhoodhouses and Maintaining ageing community Challenges » » » » » » » » » » Year Ahead

technology system registration information Consider animproved animal Sesquicentennial Celebrations 2018 Planning for Island Phillip 2015 Planning for Centenary ofAnzac Precinct 1 redevelopment Cowes Cultural Development ofplans for Stage location Library, Wonthaggi into new Relocation ofBass Coast Principal Centre for Bass Coast Aquatic and Leisure Detailed redevelopment design Cowes for Recreation CA79 OpenSpace Development ofthemaster plan Murphy at Coronet Bay project ‘Bronze Yarns’ by David Completion ofthepublicart Culture Plan Adoption oftheCouncil and Arts 2014 2013, to beopenfor Term One KindergartenNorth inDecember Completion for theWonthaggi » » » » » » » » » » » » » » » » » Indicators: Community satisfaction rating on:

1,300 fire plugs Completed maintenance on fire season issued: 732 unsightly properties duringthe Notices for long grass and Shire issued: 137 risk bushfire areas across the Fire Prevention Notices inhigh given: 2,067 Number ofimmunisations 50 premisesbody art registered: Number ofpersonal care and registered premises: 1,060 of Number inspections registered: 416 Number offood premises dogs 101cats and376 impounded: Number ofanimals Waiting list:0 2,500 Aged Clients: andDisability points (new question) centresArts andlibraries: 65 change) Parking facilities: 53 points(no (down 2points) Traffic management: 51 points points (up4points) Local streets andfootpaths: 51 points (up3points) Appearance ofpublicareas: 70 points (up2points) Enforcement oflocal laws: 64 points (up1point) Recreational facilities: 63

51 | Bass Coast Shire Council Annual Report 2012/13 52 | Bass Coast Shire Council Annual Report 2012/13 Corporate Governance against ourperformance targets and direction are followed by the overall goals, objectives management andreported Good governance ensures than two hours drive from combination ofunspoiled coastline andpicturesque rural hinterland isless Bass Coast’s unique Melbourne. » » claims andMayor andCouncillor expenditure. A quarterly report istabled at Council meetings detailing Councillors’ travel Executive’s Office. Mayoral year andissupported by an Executive Assistant withintheChief The Mayor isprovided withtheuse ofaCouncil car andanoffice duringtheir Department. Policy andare provided withsecretarial through support theGovernance reimbursed for expenses asoutlinedintheProvision ofResources to Councillors and afinancial contribution towards aprinter andcartridges. Councillors are Each Councillor isprovided withamobile telephone, iPad, broadband connection this amountasasuperannuation contribution. The Mayor andCouncillors also receive aninepercent payment inaddition to year are: Bass Coast Shire Council isincategory Theallowances 2. for financial the2012/13 in carrying outtheirduties. The allowance paid recognises the demands placed on the Mayor and Councillors Mayors andCouncillors dependingonthesizeandrevenue base ofthecouncil. The state government sets themaximumannual allowances that can bepaidto Councillors’ Allowances andSupport on 31October 2012. place by postal vote Theincoming on27October 2012. Council was sworn in community andtheorganisation. Duringthisreporting periodanelection took Bass Coast Shire Council’s seven Councillors are essential linksbetween the Elected Representatives

Councillors at $22,405.00 Mayor at $69,325.00

the organisation. monitoring theperformance of service delivery standards and and guidingpolicies,setting the municipality, establishing the strategic direction of performs thisrole by setting Bass Coast Shire Council 2. The role2. ofacouncil includes: 1. A council iselected to Victoria. Itstates: sets outtherole ofcouncils in The Local Government Act 1989 Council’s Role f. e. d. c. b. a. the local community and the municipal district the good governance of provide leadership for

in civiclife active participation cohesion andencouraging Fostering community communities the needsofother by taking into account ingovernmentpartner asaresponsibleActing and governments to other communities of thelocal community Advocating theinterests and accountable manner managed inaresponsible that resources are of thecouncil by ensuring Maintaining theviability their achievement objectives andmonitoring establishing strategic Providing leadership by in decisionmaking of thelocal community account thediverse needs government by taking into asarepresentativeActing 53 | Bass Coast Shire Council Annual Report 2012/13 54 | Bass Coast Shire Council Annual Report 2012/13 Professional Development Workshops for Incoming Councillors KPI Workshop withCouncillorsand Audit Committee–22March 2013 KPI Workshop 2013 –13February $2,970.00 Local Government Act Obligations Workshop 2013 –13February Risk Workshop withCouncillorsand Audit Committee–28November 2012 Councillor InductionProgram -November 2012 Training /Development Course Cr Drew Incoming Council (sworn inon31/10/12) Cr Barlow Outgoing Council to October 2012) (term ended26/10/12) (July Councillor expenditure for Financial Year 2012/13 Cr Wright Cr Wright Cr Rankine Cr Duscher Cr LeServe Cr Dowman Cr Brown Cr Daly Cr Phillips Cr Paul Cr Crugnale Cr Smith childcare including super& Allowance childcare including super& Allowance $18,716.08 $4,071.06 $18,716.08 $4,071.06 $18,716.08 $4,071.06 $44,303.33 $12,386.66 $18,716.08 $4,071.06 $18,716.08 $4,071.06 $18,716.08 $4,071.06 rvl1/3Workshops/ Travel 12/13 Workshops/ Travel 11/12 $683.50 $1,215.03 $1,749.48 $584.52 $715.63 $1,374.87 $0.00 $0.00 $4,843.36 $932.68 $2,358.69 $1,045.55 $591.28 $504.52 Conferences Conferences $0.00 $0.00 $625.00 $0.00 $3,581.86 $1,055.18 $3,598.82 $0.00 $2,188.64 $0.00 $0.00 $0.00 $264.00 $0.00 TOTAL Broadband/iPad Telephone/Fax/ Broadband Telephone/Fax/ $2,063.99 $572.79 $2,285.55 $274.24 $1,781.40 $514.41 $1,890.60 $799.86 $2,626.92 $732.26 $1,953.76 $743.77 $2,032.92 $635.40 $2,363.00 $2,363.00 $3,300.00 $8,000.00 $18,996.00 Cost TOTAL TOTAL $21,463.57 $5,858.88 $23,376.11 $4,929.82 $24,794.97 $7,015.52 $49,792.75 $13,186.52 $28,375.00 $5,736.00 $23,028.53 $5,860.38 $21,604.28 $5,210.98 » » 12 Ordinary Meetings, 1Statutory and0Special Meetings ofCouncil were held duringtheyear. Attendance at Council Meetings from 1July 2012to 30June2013 Direct Interest are two types ofinterests: disclosurea full ofthat interest. There of Council, theCouncillor mustmake considered ordiscussed at ameeting in amatter whichisorlikely to be If aCouncillor hasaconflict ofinterest Conflict ofinterest October 2013. and adopt anew Code ofConduct by The newly elected Council mustrevise good governance oftheShire. Council isto provide leadership for the our municipality. Theprimaryrole of the bestinterests ofthepeople within is committed to working together in adopted inNovember 2009. Council The Councillor Code ofConduct was of Conduct Councillor Code

onilrOrdinary meetings attended Cr Barlow Councillor Cr Daly Cr Dowman Cr Duscher Cr Paul Cr Smith Cr Wright Cr Phillips Cr Crugnale Cr LeServe Cr Rankine Cr Brown Cr Drew (either positive ornegative) Change ofresidential amenity Direct financial benefitor loss (12 held) (12 12 4 4 4 4 4 4 8 8 8 8 8 7 » » » » » Indirect Interest meetings. Council meetsonthe in openandpublicly advertised Council conducts itsbusiness Council meetings authority. By Council2. officers underdelegated and Special Committees ofCouncil 1. By resolution at Council meetings two ways: Council decisionsare made inoneof Council decisionmaking Councillors andonefrom Council staff. registered eightfrom in2012/13, N

ine Conflicts ofI interested party As aconsequence ofbecoming an Due to receipt ofapplicable gift Due to conflicting duties Indirect financial benefitor loss By close association Statutory meetings attended (1 held)attended (1 nterest were 0 0 0 0 0 0 1 1 1 1 1 1 1 from thepublic. each Council meetingfor questions Time ismade available at 5.00pmat debating andvoting onthese items. meetings andare precluded from any item to bediscussed at Council direct orindirect pecuniary interest in Councillors are required to disclose any recommended actions. independently by staff andinclude for consideration are prepared Procedure Local Law 2009. Reports accordance withCouncil’s Meeting Meetings are conducted in in Cowes. premises inWonthaggi withsome held are predominantly held at theShire’s consider specificmatters. Meetings Special Council meetings are called to at 5.00pm.Onoccasion, additional third Wednesday ofevery month Special meetings attended (0 held) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 55 | Bass Coast Shire Council Annual Report 2012/13 56 | Bass Coast Shire Council Annual Report 2012/13 » Key initiatives in2012/13: two months. control. TheCommittee meetsevery matters ofaccountability andinternal reviewing andadvising Council of Council’s operations by monitoring, to overview thefiduciary matters of The role oftheAuditCommittee is Audit Committee provided onCouncil’s website. committees and theirmembers is outlined below. Acomplete listof Major committees ofCouncil are Committees Council Council. managing theday to day operations of Officer’s statutory responsibility in system recognises theChiefExecutive in atimely andeffective manner. This ofCouncilfunctions to becarried out other Council officers to enable the turn, may delegate responsibility to the ChiefExecutive Officer who, in have beendelegated by Council to Functions ofanoperational nature Delegations Attendance at AuditCommittee Meetings

oss Smith Cr Ross rCaeL ev / N/A N/A Cr Clare LeServe Cr Veronica Dowman rNi akn / N/A N/A N/A N/A Cr Neil Rankine Cr Jordan Crugnale x Cr Peter Paul Mr David Schultz Mr Brian Rudzki Mr RobGoddard 22Aug Committee member review ofPayroll. communication processes, and processes, review ofCouncil’s decisions, ITgovernance Implementation ofCouncil Commissioned auditsof: 2012                2012 11 Sep  N/A N/A  N/A  x  » » » (November 2012–June2013) Cr Jordan Crugnale (November 2012–June2013) Cr NeilRankine (November 2012–June2013) Cr Clare LeServe 2012–October 2012) (July Smith Cr Ross Cr Peter 2012–October 2012) Paul (July 2012–October 2012) (July Cr Veronica Dowman Councillors: Mr David Schultz Mr Brian Rudzki Mr RobGoddard (Chair) Independent members:

Committee report to Council. The Chairalso provided a the Committee. secretariat provided support to charter andanassessment ofthe best practice, areview oftheir their performance against industry Conducted aself-assessment of outsourced service providers. and contract management of Events Management, Procurement, Governance, ITgeneral controls, and non-core Council services), Project (aimed at identifyingcore of theFinancial Sustainability Tracking andManagement, review Accounts Receivable, Document Grants, HACC services, payroll, the following audits:Community Monitored implementation of 2012 28 Nov     N/A  N/A  N/A  N/A N/A N/A 2013 27 Mar x 2013 26 June  ( ( ( Cr 2012– (July Cr Veronica Dowman Council members: Coast. road users andpedestrians withinBass that provide asafe environment for all developing andpromoting strategies serious injuryonVictorian roads by safety goal ofreducing death and is t T Road Safety Committee Bass Coast Community Cr Kimberley Brown ( Cr Clare ( Cr JohnDuscher 2012– (July Cr Cr Veronica Dowman Council members: Committee meetsasneeded. Coast selecting thewinners oftheBass their Clubs incoordinating andrunning r T Australia Day Committee N N N July 2012– July 2012– esponsible for assisting he key objective oftheCommittee he ovember 2012–June2013) ovember 2012–June2013) ovember 2012–June2013) o contribute to thelong-term road A R oss A ndrew Phillips A ustralia Day Committee is A ustralia Day celebrations, and T ustralia Day S hey meetbi-monthly. L mith e O O O O S erve ctober 2012) ctober 2012) ctober 2012) ctober 2012)

A w

ards. R

otary T he ( Cr Kimberley Brown 2012– (July Cr Veronica Dowman Council members: second monthofevery month. across the response andevent management to community safety planning and int T Advisory Committee Safety andEvents Bass Coast Community ( Cr Clare 2012– (July Cr JohnDuscher Council members: S on thefirst Monday inMarch, June, Management Act 1986,they meet the provisions oftheEmergency for financial assistance. Plans, includingrecommendations mitigation plans, Plans, develops and fire flood E the Bass Coast recovery from emergencies within pr T Planning Committee Emergency Management Bass Coast Municipal N N mergency Management and eptember andDecember. he Committee provides an he Committee addresses the evention of, response to and ovember 2012–June2013) ovember 2012–June2013) egrated andconsultative approach L e S O O S hire. erve ctober 2012) ctober 2012) S hire. T E hey meetthe mergency I t coordinates S et upunder R A ecovery ction ction names f l ( Cr Kimberley Brown 2012– (July Cr JohnDuscher Council members: meet asrequired. and addressing withinthe considers submissions for place names in thecase of locality names. makes recommendations to Council T Place NamesCommittee Bass Coast Shire Council Cr 2012– (July Cr JohnDuscher Council members: bi-monthly. complement each other. of individual agencies are linked and management andensure that theplans shared purpose withregard to fire a common understanding and organisational partnerships, generate T Management Committee Bass Coast Municipal Fire ( evel forum to build andsustain N N he Committee decidesappropriate he Committee provides amunicipal ovember 2012–June2013) ovember 2012–June2013) N eil R or roads andfeatures. ankine O O ctober 2012) ctober 2012) T S hey meet hire. I t also I t T hey 57 | Bass Coast Shire Council Annual Report 2012/13 58 | Bass Coast Shire Council Annual Report 2012/13 (November 2012–June2013) Cr Bradley Drew (November 2012–June2013) Cr NeilRankine (November 2012–June2013) Cr Clare LeServe 2012–October 2012) (July Smith Cr Ross 2012–October 2012) (July Cr Peter Paul 2012–October 2012) (July Cr Veronica Dowman Council members: Committee meetsannually. by theChiefExecutive Officer. The resources policiesrecommended Council andendorsement ofhuman the salary range for senior officers of changes to theorganisation structure, and salary, approval ofanymajor Chief Executive Officer’s performance Executive Officer, thereview ofthe particular, therecruitment oftheChief Council onhumanresources issues, in The Committee gives advice to Committee Human Resources (November 2012–June2013) Cr Jordan Crugnale Council members: applicants for projects. publicart involved intheprocess listing ofshort advises onbriefs for andis publicart for Thecommittee funding. also land andadvising onpotential models installation sites onCouncil managed Thisincludessuggesting public art. Council onall matters related to The Committee provides advice to Committee ReferencePublic Art Foundation Western Port Biosphere Reserve Corporation West Gippsland Regional Library Association Victorian Local Governance South EastMetro Group ofCouncils South EastAustralian Transport Study National Sea Change Taskforce Liaison Group IslandPhillip Nature Parks Council Advisory Committee IslandPhillip Nature Parks Community Peri UrbanGroup ofCouncils Municipal Association ofVictoria Committee Inter-Council Aboriginal Consultative Management Group Gippsland Regional Waste Gippsland Local Government Network Committee Bass Coast Environmental Review on other committees: Council representation report. list isavailable inAppendix1ofthis a range oforganisations. Acomplete Council also haspaidmemberships to organisations Membership of » » » » » » available onourwebsite. A copy ofthe2013–2017Council Plan is Health andWellbeing Plan 2013–2017. incorporated theMunicipal Public Council Plan 2013–2017, whichalso newly elected Council adopted the 17 June2009. On19June2013,the Plan were adopted by Council on Municipal PublicHealth andWellbeing The 2009–2013Council Plan andthe staff, drawing oninformation from: 2017 was developed by Councillors and Bass Coast Shire Council’s Plan 2013– The Plan isthenreviewed annually. June intheyear following theelection. generate aCouncil Plan by theendof requires anewly elected Council to The Local Government Act 1989 Council Plan Business Planning

Council’s strategic documents requests andcomplaints correspondence andanalysis of surveys, consultations, Research gathered through federal government mandatedActivities by state and Council policiesandstrategies Projects /activities identifiedin Councillors andstaff ratepayers, community groups, Initiatives /suggestions from improvement measures Value Program andother process by Council oftheBest aspart Service reviews undertaken best outcomes for ourcommunity. planning anddelivery ofservices achieves the This process shows how we make sure our Strategic Planning Process Reflect Act Plan Council Plan Program Delivery Business Plans Municipal Strategic Statement Municipal PublicHealth Plan Community Plan Budget Document Strategic Resources Statement – Measures /Targets – Key Strategic Documents – Objectives – Vision – Budget performance – Measures /Targets onCouncil– Reporting Plan Outcomes Annual Report – Operational Actions Staff Performance andDevelopment Plan – Measures /Targets – Actions 59 | Bass Coast Shire Council Annual Report 2012/13 60 | Bass Coast Shire Council Annual Report 2012/13 projects specificto theirwards. Progress ontopics Reports and Councillors receive monthly Ward from internal audits. associated withanyrecommendations the AuditCommittee on actions Program. are Reports presented to Council Plan andCapital Works outlining theprogress against the Council andtheauditcommittee A quarterly report ispresented to the community onitsachievements. progress ofactions andreporting to record itsquality standards, track allows each Council service area to reporting software. Thesystem Council uses Interplan, aperformance Reporting Adopted Plans andPolicies 2012-2013 Council Plan 2013-2017 Procurement Policy Community Engagement Policy Fraud Corruption andControl Plan Asset Management Policy Councillor ITEquipmentPolicy Councillor Travel Policy Provision ofResources to Councillors Policy Municipal Fire Management Plan Compliance andEnforcement Policy Future LandRelease Management Plan 86SpecialSection Committees ofCouncil Policy Domestic Animal Management Plan Plan /Policy (Appendix 2). available onpage 73 ofthisreport results. Thisyear’s indicators are infrastructure, debtsandoperating such asrates, capital expenditure, ratings, aswell asfinancial measures include community satisfaction set outintheCouncil Plan. Indicators performance against theobjectives Government Indicators, to monitor its including theVictorian Local Council uses arange ofmeasures, Indicators Performance Date Adopted 19/06/2013 15/05/2013 15/05/2013 30/01/2013 12/12/2012 14/11/2012 14/11/2012 14/11/2012 17/10/2012 19/09/2012 19/09/2012 15/08/2012 25/07/2012 systems andasset information documents cover theprocesses, management. Together these two core asset maturity levels inasset plan to assist Council inachieving Plan provides officers withanaction Management Improvement Plan. The making andissupported by theAsset The policy isthebasisofdecision Framework. within theNational Assessment score against thisspecificelement Adoption of thepolicy raise will the core maturity inasset management. meeting itsobjective ofachieving regional councils andisakey step in bring Council into linewithmost other in December Thisversion 2012. will Framework, was adopted by Council Asset Management Assessment and inaccordance withtheNational prepared to meetourobjectives A new Asset Management Policy, Asset Management completion rate of93 percent. and achieved anoverall average these 140,we completed 93 projects landslips) andnew projects. priority Of 140 dueto unexpected projects (eg number ofprojects had increased to However, by theendofyear the of theyear contained 88projects. The planned project listat thestart Centennial Centre. Remo Kindergarten andtheWonthaggi Island’s Early Learning Centre, theSan formillion facilities including the Phillip on roads, andlarge items suchas$4.4 expenditure ofmore of$16million works program to date, whichincluded increase was dueto ourlargest capital This in2012/13. than $25million from to in2011/12 million $21.3 more Council’s capital expenditure increased and future physical assets. required to manage all oftheexisting » » » » » » » » the year included: Major capital works completed during

design andconstruction from Anderson to Woolamai – Bass Coast RailTrail extension at McMahons Reserve, Wonthaggi Recreational playground upgrades Square Landscaping –construction Cowes CivicPrecinct, Cowes Town Woolamai –construction Vista Place car parktoilets, Cape – construction IslandPhillip Early Learning Centre and construction Wonthaggi –Building 4–design Office accommodation, car-park anddrainage works Wonthaggi SeniorCitizensCentre Inverloch andCowes Skate Park Shelters inWonthaggi,

61 | Bass Coast Shire Council Annual Report 2012/13 62 | Bass Coast Shire Council Annual Report 2012/13 » » » » » » » » » » »

construction Coronet Bay Boat RampCarPark – construction Anderson Road to Justice Road – Settlement Road, Cowes from 2 –construction Hunter Street, Wonthaggi –Stage reconstruction Coghlan Road, Cowes – Scheme –construction Pine Avenue Special Charge reconstruction Biggs Drive, Wonthaggi – Scheme –construction South Dudley Special Charge resurfacing seal surface renewal program – Urban andrural roads spray Grantville Installation offlagpoles in purposes Ventnor Road for recreational Property purchase ofCA79 Church Street, Cowes Property purchase of50-52 and54 » » » » » » » » » » financial year are: 2013/14 and expected to becompleted innext commenced duringthisfinancial year Other majorprojects that were

landfill Construction ofCell 6inGrantville Rehabilitation landfill of Rhyll Point Stormwater management inTenby construction Smiths Beach Road, Cowes – reconstruction Alvie Road to Sheepways Road – Loch-Wonthaggi Road from Glen minor designandrehabilitation Hade Avenue Bass Bridge, Bass – design andreconstruction Road to Nyora StHelierRoad – Gurdies StHelierRoad/Steward Mobile Skate Parks ProjectPublic Art Scheme works Special ChargeStreet Area Highway) andStage 2–Graham Stage 1–Graham Street (Bass » » » » » » » tool was trialled in2012/13. evaluation andscheduling tool. This in developing anew capital works Bass Coast Shire Council assisted Regional Asset Management Program, As anactive intheMAV participant

Upgrade –construction Wonthaggi CivicCentre –Stage 1 Bass River –repair works Grantville Glen Alvie Road Bridge, Scheme –concept design Sunset StripSpecial Charge Extension –construction Wonthaggi Kindergarten North process Scheme –commence scheme Cape Paterson Special Charge construction Parade,Carpark Surf Inverloch – Foreshore PublicToilet –Western block –connection to Sewer Cape Paterson First toilet Surf Major consultation exercises duringtheyear included: undertaken thisyear. Coast community. Thetable below shows some ofthepublicconsultations contribute to helpingCouncil understand theissues andprioritiesoftheBass and planning processes. Consultation takes manyvaried forms, all ofwhich Community consultation isanessential ofCouncil’s part decisionmaking Community Consultation Ramp, Cowes Anderson Road Boat Budget 2013/14 Cowes Crown Allotment 79, Transport Study IslandPhillip Integrated Community forums were held invarious locations to seek community inputinto the Council Plan 2013–2017 Council consulted thecommunity to findthebestway to deal withissues caused BeachSurf Shearwaters McMahon Reserve Wimbledon Heightsand Playground renewal Road Access Strategy RemoTrafficSan and Rural LandUse Development Newhaven West Health andWellbeing Plan TheSpeak Up,Speak Outconsultation sought inputfrom communities across theShire Description Speak Up,Speak Out Consultation boat ramp inCowes. Consultation to helpdevelop adesignfor anew alongside jetty theAnderson Road through June. financial year. TheBudget was available for andsubmissions inspection accepted Submissions from thecommunity helpedshape Council’s Budget for thecoming exhibition next financial year. community feedback to develop amaster plan. Theplan beavailable will for public Having purchased theland for a new recreational area inCowes, Council sought preparation. community visionfor integrated transport Thedraft opportunities. documentisunder Community forums were held inNewhaven, RemoandCowes San to develop a new Council Plan. ThePlan was adopted by Council on19June. VicRoads Island andPhillip Nature Parks to develop asolution. by traffic andthebirds’ andparking, nestinghabitsinthearea. Council also worked selected designwas installed inMay. The community was invited to vote onpreferred designsfor thenew playgrounds. The Final bemade decisionwill in year 2013/14. Remo. Thecommunity were also invited to make submissions to theDraft strategy. Council held various community workshops to develop anAccess Strategy for San strategy was deferred at Council’s andadopted Junemeeting, inAugust. in consultation sessions were held inMay andsubmissions invited. Decisiononthe proposed direction before Council developed the Draft Rural Strategy. LandUse Drop- The community thenhad to theopportunity provide feedback onthekey issues and for improvement. Theinformation gathered was used to develop adirections paper. The community was consulted ontheirviews oncurrent land use policiesandareas rezone thisland to facilitate residential andcommercial development This application hasnow lapsed. However, thedeveloper drafting isstill aproposal to land west ofthecurrent township. Thisfeedback was provided to thedeveloper. Council consulted theresidents ofNewhaven ontheirviews onaproposal to develop adopted by Council on19June2013. into thedevelopment oftheMunicipal Health andWellbeing Plan 2013–2017, whichwas were available from all Council Customer Service Centres. Information collected went community. Surveys were also conducted inperson inJanuary2013,andpaperversions 189 responses from all towns, ages andlevels ofhealth andwellbeing withinthe was conducted between November 2012andFebruary 2013.Anonlinesurvey received Extensive consultation withthecommunity, health agencies andother stakeholders Cape Paterson throughout January2013. for thedevelopment oftheCouncil Plan. These forums took place onCowes, Bass and 63 | Bass Coast Shire Council Annual Report 2012/13 64 | Bass Coast Shire Council Annual Report 2012/13 or federal laws. they duplicated requirements ofstate removed duringthereview process, as was putinplace. Over 50clauses were new, more user-friendly Local Law consultation withthecommunity, a After extensivein 2011and2012. No1of2005was undertakenLaw reviewA full ofCouncil’s General Local Local Laws savings of$213,300to Council. processes were carried out,providing nineseparateIn 2012/13 improvement service level. – at awhole of council level andat levels –asdoesourstrategic planning Best Value principles work at two Process Improvements communities. providing value for money to their principles to ensure that they are to review theirservices against six Act 1999requires all Victorian councils The Local Government (BestValue) Best Value Continuous Improvement and intended for users that they are Continuously Be accessible to the Be responsive standards Set cost andquality must: Council Services Best Value Principles achievements community onits backReport to the improve community Consult withits Council must: Council’s Customer Service Centres. Council’s website andat anyof The Local Law can beviewed on 2 August2012. on 25July andgazetted on 2012, 2012wasAmenity passed by Council new No.1 Local Law Neighbourhood The resolution for themakingof Appendix 3 in this document. Appendix 3inthisdocument. for isavailable publicinspection at A listofthedocumentsavailable Legislative Compliance » » » » » » » » Procurement Policy Government Act 1989 (Vic). and isinaccordance withtheLocal industry andbestpractice standards The policy takes into account entered into. These include: to all purchases made andcontracts outlines thecore principles that apply Council hasaProcurement Policy that

Business Improvement Environmental Considerations and Local Sourcing Opportunities Probity andTransparency Risk Management Accountability Open andFair Competition Value for Money

offered ontheday. microchipping andregistrations focus ofthisyear’s Pet Expowith and identification was again amajor The importance ofpetregistration number ofregistrations. renewed. Thisassisted inincreasing the pet registrations that had not been undertaken doorknocksto follow up The Community Safety Rangers have Registration andIdentification monitor training for authorised staff. for staff andprovides to theability that identifieslearning opportunities A training calendar was developed Training ofAuthorised Staff outlined below. each ofthekey areas intheplan are undertakenActions inrelation to implementation oftheplan. has beenestablished to assist inthe industry andcommunity stakeholders Anadvisory2012. committee ofkey was adopted by Council on25July Domestic Animal Management Plan The Bass Coast Shire Council’s Annual Report. implementation ofthese plans inthe management plans andreport onthe councils mustprepare domesticanimal Under theDomesticAnimalsAct 1994, Domestic Animal Management Plan legislative changes. are reviewed annually along withall when addressing these complaints The procedures which rangers follow and effectively. be attended to promptly, efficiently weekend reports ofdogattacks can hours service numberprovided so that response to dogattacks withanafter- Council provides animmediate Dog Attacks breeds are undertaken annually. dangerous, menacing andrestricted Reviews oftheprocedures relating to Restricted Breeds Dangerous, Menacing and ownership. on education onresponsible pet The focus ofthese patrols was such asdogs at large andoffleash. patrols to monitor nuisance issues summer along withregular township Beach patrols were undertaken over Nuisance Dogs –6,315 Cats –1,515 Animals registered asat 30June2013 domestic animal business. if they fall withinthecategory ofa animals are inspected to ascertain have beenidentifiedashaving excess code ofpractice. Properties which ensure compliance withtherelevant as breeders, petshops andkennels to of domesticanimal businesses such Council undertakes annual inspections Domestic Animal Business pet ownership . toopportunity promote responsible the Pet Expoprovided anexcellent Education plays avital role inthisand unclaimed petsandferal animals. the overpopulation ofdomesticpets, information onstrategies to reduce and PrimaryIndustryto gain ofEnvironmentthe Department localsuch astheRSPCA, vets and Council works closely withagencies Overpopulation andEuthanasia 65 | Bass Coast Shire Council Annual Report 2012/13 66 | Bass Coast Shire Council Annual Report 2012/13 » » » » » » » Management. and Organisational Risk Planning, Special Committees found to beinTown areas intheaudit were period. Thebestperforming other Councils for thisaudit show ourranking against therefore we are unable to have completed theaudit, 86 percent. Not all Councils remained stable at period. Ourscore2012/14 in December 2012for the auditwasA full carried out Audit Public Liability No complaints were received during handle andstore personal information. Privacy Policy inform how we collect, Privacy Act 2000(Vic)andCouncil’s Standards set outby theInformation Information Privacy » were non-personal. Information Act four. All requests the year underthe Freedom of requests for information during Council received atotal offour under theAct. the information isdeededexempt information held by Council, unless organisation therightto access legislation gives aperson or Freedom ofInformation (FOI) Freedom ofInformation

Information Act 1982 were S.33 oftheFreedom (1) of Exemptions used thisyear finalised Three requests are not yet finalised inthe2012/13 year 1 request from year the2011/12 was (VC Victorian CivilAppeals Tribunal 0 appeals were lodged withthe undertaken 0 internal reviews were 0 were refused the Act 1 was granted partial access under 0 were granted infull AT )

Score % 100% 80% 60% 90% 40% 20% 50% 30% 70% 10% 0% Public Liability Insurance –Annual AuditResults the year. » » » » The key objectives are oftheAct to: Whistleblowers Protection 2001. Act including Councils andreplaces the appliestoThis Act all publicbodies, the Protected Disclosures Act 2012. The State Government hasintroduced Protected Disclosures disclosures made to Council orIBAC. thereDuring 2012/13 were no Councillor mustbemade to IBAC. Victoria (IBAC). Adisclosure abouta Based Anti-Corruption Commission directly to theIndependentBroad- may bemade eitherto theCouncil or Disclosures aboutaCouncil officer download from Council’s website. Disclosures. These beavailable will for procedures relating to Protected has adopted apolicy andaset of As required by Council theAct,

75% 060 070 081 001 2012/14 2010/12 2008/10 2007/08 2006/07 35 dealt with to beproperly investigated and Provide for thematters disclosed to thisdisclosures who may suffer reprisals inrelation Provide protection for persons who make those disclosures Provide protection for persons bodies by publicofficers andpublic disclosures ofimproper conduct Encourage andfacilitate Audit Score 60% 67 74% 63 State Ranking were established. to behighrisksandtreatment plans delivery. Ofthese, 19were considered 135 potential risksinourservice CouncilDuring 2012/13 staff identified management. performance inthearea ofrisk strategies deployed to improve our risksacross Council andcurrent shows how we manage andmonitor to theAuditCommittee quarterly. It updated andareport ispresented The RiskRegister iscontinually performance reporting. our annual business planning cycle and processes are now embeddedinto potential losses. Ourriskmanagement while managing risksto minimise take advantage ofopportunities helps Council identifyitsrisksand Our RiskManagement Framework Risk Management 86% 27 86%

80 60 40 20 50 30 70

10 0 State Ranking State how to report suspicions. Key messages to staff were: what constitutes fraud, what to look outfor and T towards theendof2013. results for thisfinancial year show nochange. T The Commercial CrimeAuditisalso undertaken biannually and,therefore, the Commercial Crime Audit The next beheld auditwill towards theendof2013. significant losses. enhancing procedures for assessing andinvestigating incidentsthat result in We continue to work onimprovements to ourBusiness Continuity Plan and graph have not changed from last year. financial year covered inthisreport. For this reason, theresults shown inthe Being abiannual audit,Council hasnot undertaken aProperty RiskAuditinthe Property RiskAudit his year, we developed andintroduced aFraud andCorruption Control Plan. Score % Score % 80% 60% 90% 40% 20% 50% 30% 70% 85% 65% 95% 45% 25% 55% 35% 75% 10% 80% 60% 40% 20% 50% 15% 30% 70% 0% 10% 5% 0% Assets (JMAPP) InsuranceAssets (JMAPP) –Annual AuditResults Commercial crime –Annual AuditResults 060 070 2008/10 2007/08 2006/07 060 070 2008/10 2007/08 2006/07 24 37 70% 72% Audit Score Audit Score 40% 72% 37 40 State Ranking State Ranking 69% 49 35 he next becarried auditwill out 72% 2010/12 2010/12 18 50 87% 66% 60

40 20 50 30 60 40 20 50 10 30

10 0 0

State Ranking State State Ranking State

67 | Bass Coast Shire Council Annual Report 2012/13 68 | Bass Coast Shire Council Annual Report 2012/13 Ward Funds /Sponsorships andDonations development ofthecommunity. environmental andeconomic which enhance thesocial, cultural, innovative wishing to present quality, communitysupports organisations O Grants anddonations adFn Recipient Anderson Ward Fund Churchill Hovell Leadbeater ur Community Grants Program S hire-based activities, Cowes RecreationCowes funding) Reserve Landscape Plan (joint Bass Coast Agricultural Show –purchase funding) oflaptop (joint Wonthaggi Theatrical funding) Group (joint RemoRecreationSan Centre –roof fans RemoPreschoolSan –replacement ofgate Men’s Health Victoria Workshop Wonthaggi Table Tennis Club-Perth Championships Cowes RecreationCowes funding) Reserve Landscape Plan (joint Bass Coast Acoustic MusicClub Smiths Beach Streetscape Soccer Club–purchase ofequipment Shearwater funding) Project (joint Bass Coast Auto Club Memorial –AirObservers seat Wonthaggi Cemetery –seat Cassia Street Reserve Bass Coast Agricultural Show –purchase funding) oflaptop (joint Wonthaggi Theatrical funding) Group (joint State Coal MineRescue Station Shearwater funding) Project (joint Community Gallery Art Victorian Community Road Safety Conference Wonthaggi Scout Group Wonthaggi andInverloch Inter-Church Council Kernot Hall -toilet area upgrades Corinella Men’s andDistrict Shed–toilet andwash basin Corinella Community andDistrict Centre –seats Gippsland BeefAgricultural Education –storage shelves Grantville Town Banners Grantville CFA Pioneer Bay Australia Day Bass Valley Community Group Bass Community Centre Shearwater funding) Project (joint Corinella Men’s andDistrict Shed–connection ofelectricity supply JLM Preschool Fundraising Auction Corinella ChristmasinthePark fund small-scale facility developments. Minor Capital Works Grants –to equipment, activities andpromotion. assist community groups withfacilities, General Community Grants –to available intheProgram: There are three categories ofGrants Report. Appendices 4,5and6ofthisAnnual list ofcommunity grants isavailable in organisations across Bass Coast. Afull totalling $150,374 were allocated to 49 55communityIn 2012/13, grants community events. community groups to runlocal Special Events Funding –to support continued >> Amount $5,000 $2,050 $3,500 $3,200 $2,559 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,500 $1,500 $1,500 $1,500 $1,200 $1,408 $1,309 $1,450 $2,103 $800 $800 $980 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $897 $983 $750 adFn Recipient McHaffie Ward Fund Thompson Townsend Wooden Community Suggestion Boxes IslandPhillip Ladies Soccer Team –kitandequipment Red RocksCoast Care Bronze plaques for Historic Rhyll Walk Revegetation ofBayview Park, Ventnor RecreationCowes funding) Reserve Landscape Plan (joint Shearwater funding) Project (joint National VietnamVeterans Museum –Canberra Bomber RecreationCowes funding) Reserve Landscape Plan (joint IslandPhillip Community andLearning Centre –Community Garden Men’s Health andWellbeing Alliance Network –“Absence” documentary Shearwater funding) Project (joint Cowes Community Committee RemoCommunitySan Centre –Climate Change Forum Clean Ocean –Operation Eagle Sea signage Swell workshops Mamassupported surfing West Gippsland Regional Library Board –digital audiorecorders for Inverloch Library Inverloch Preschool andDistrict –play equipment Wonthaggi Theatrical funding) Group (joint Hall hire Royal Children’s Hospital Foundation dinnerdance South Gippsland Yacht Club–RIBOcean Runner VIEW Club–wireless PA system Inverloch Men’s Shed Queenscliff Drive Playground Inverloch Foreshore Promenade Resurfacing Total Ward Funds Amount $79,981 $4,000 $3,000 $2,500 $2,450 $2,675 $1,000 $1,000 $1,000 $1,500 $1,500 $1,045 $1,700 $2,120 $1,536 $1,424 $800 $800 $500 $500 $500 $200 $509 $654 $259 $320 69 | Bass Coast Shire Council Annual Report 2012/13 Glossary

GLOSSARY GLOSSARY ACMI Australian Centre for the Moving IT Information Technology Image LGA Local Government Area AFL Australian Football League LiDAR Airborne laser scanning ALGA Australian Local Government Bass Coast’s unique LPGro Local Government Professionals Association combinationMAV Municipal of Associationunspoiled of Victoria CBD Central Business District MRF Materials Recycling Facility CEO Chief Executive Officer coastline and picturesque MPHP Municipal Public Health Plan CSS Community Satisfaction Survey rural hinterland is less NBN National Broadband Network DAMP Domestic Animal Management Plan than twoOH&S / hoursOccupational drive Health &from Safety OHS DEECD Department of Education and Early Childhood Development PICAL Phillip IslandMelbourne. Centre for Adult Learning DPCD Department of Planning and Community Development PINP Phillip Island Nature Parks DoT Department of Transport RACV Royal Automotive Club Victoria DPI Department of Primary Industries RAJAC Regional Aboriginal Justice Advisory Committee DSE Department of Sustainability and Environment RMIT Royal Melbourne Institute of Technology FOI Freedom of Information SEATS South East Australian Transport GIS Geographic Information Systems Study GLGN Gippsland Local Government SEM South East Metro Group of Network Councils GP Grand Prix STEP MAV Step Enterprise Content GRWMG Gippsland Regional Waste Management Program Management Group VCAT Victorian Civil Appeals Tribunal HR Human Resources VLGA Victorian Local Government ICACC Inter Council Aboriginal Association Consultative Committee Annual Report Annual 2012/13 Council Shire Coast Bass |

70 Appendices

71 | Bass Coast Shire Council Annual Report 2012/13 72 | Bass Coast Shire Council Annual Report 2012/13 Membership ofOtherOrganisations Appendix 1 South EastAustralian Transport Strategy Group Rural Councils Victoria National Sea Change Taskforce Municipal Association ofVictoria Mornington Peninsula andWesternport Biosphere Foundation Ltd Maddocks (Subscription to Delegations andAuthorisations) Local Government Professionals Local Government Managers Australia Local Government Business Excellence Network International Council ofLocal Environment Initiatives Gippsland Local Government Network Organisation Victorian Local Governance Association South EastMetro contribution (ex. GST) 2012/13 2012/13 $22,000 $28,500 $21,500 $11,600 $8,600 $3,000 $2,200 $2,400 $2,700 $2,250 $1,800 $1,600 $770 Victorian Local Government Indicators Appendix 2 prtn eut Operating result perassessment Operating Results prtn ot Average operating expenditure per Operating Costs Expenditure Capital nrsrcueRenewal –ratio ofcurrent spendingon Infrastructure Debts Residential Rates All Rates All naeetCommunity satisfaction rating for Engagement aeoyIndicator Performance Overall Category doayCommunity satisfaction rating for Advocacy assessment assessment Average capital expenditure per maintenance asset consumption andplanned assets compared to theaverage annual maintenance ofexisting infrastructure current spendingoncapital renewal and Renewal andmaintenance –ratio of asset consumption assets compared to theaverage annual capital renewal ofexisting infrastructure Average liabilities perassessment assessment Average rates andcharges perresidential assessment Average rates andcharges per making onkey local issues Council’s engagement indecision Council’s overall performance Community Satisfaction rating for representation onkey local issues Council’s advocacy andcommunity $0.79 to $1.00 $0.52 to $1.00 $0.69 to $1.00 $0.67 to $1.00 $0.36 to $0.36 $0.67 to $1.00 $0.69 to $1.00 $0.52 to $1.00 $0.79 to $1.00 17 o$.0$.1t 10 $1.32 $1.21to $1.00 $1.79 to $1.00 0921 0121 2013 2012 2011 2010 2009 $1070 10 $1077 $1002 $1537 $485 $542 $616 60 62 63 $1746 $642 $503 $443 $1151 59 54 55 16 23 $2130 $2132 $1864 $1.00 $566 $1221 $454 $1141 $631 60 56 59 to 14 o$.0$1.17 to $1.46 to $1.00 10 $1388 $1308 12 $1309 $1224 86$646 $896 64$583 $654 45$230 $455 55 52 53 $1.00 $1.00 59 55 47 73 | Bass Coast Shire Council Annual Report 2012/13 74 | Bass Coast Shire Council Annual Report 2012/13 » » » » » » » Corporate Services Local Laws Documents Available for PublicInspection Appendix 3

dates thereturns were submitted; during thefinancial year andthe submitted returns ofinterest names ofCouncillors who were submitted; year andthedates thereturns of interest duringthefinancial were required to submitareturn names ofCouncil officers who including accommodation costs; the overseas orinterstate travel, and total cost to theCouncil of the date, destination, purpose members ofCouncil staff and the namesofCouncillors or the previous 12months,including any memberofCouncil staff in official capacity by Councillors or than three days) undertaken inan interstate travel by land for less travel (with theexception of details ofoverseas orinterstate these ranges; annual remuneration falls within of senior officers whose total ranges of$10,000andthenumber previous financial year, set outin the current financial year andthe all senior officers in of respect the total annual remuneration for Act’); Local Government Act 1989 (‘the under section 74 or74A ofthe for theMayor andCouncillors details ofcurrent allowances fixed Meeting Procedure Local Law 2009 2012 Amenity No. 1Neighbourhood Local Law » » » » » » »

Act; public undersection 89 ofthe been closed to members ofthe ofmeetings whichhaveparts except iftheminutes relate to kept undersection 93 oftheAct held intheprevious 12months ordinary andspecial meetings agendas for andminutes of Act; libraries undersection 196ofthe agreements to establish regional months; duringthepreviousthe Act 12 accordance withsection 223of submissions received in place; 86(6) and 98(6) took oftheAct the last reviews undersections includingthedatesAct, onwhich under sections 87 and98ofthe a register ofdelegations kept section 89 oftheAct; to members ofthepublicunder meetings whichhave beenclosed if theminutes relate to of parts the previous 12months,except andheldsection 86oftheAct in committees established under minutes ofmeetings ofspecial duringthefinancialfunction year; were abolishedorceased to established by theCouncil which a listofall special committees committee was established; the purpose for whicheach established by Council and a listofall special committees » » » » »

186(5) or (5A) oftheAct. or(5A) 186(5) contracts referred to insection process; and(ii)whichare not first engaging ina competitive during thefinancial year without (i) whichtheCouncil entered into ormore oftheAct) section 186(1) as isfixed from time to timeunder $100,000 (or suchhigheramount a listofcontracts valued at Council; year to each organisation by the services provided duringthat fees andother amountsand year anddetails ofall membership was amemberduringthefinancial organisations ofwhichthe Council a listofthenames grant; the amountofeach donation or received adonation orgrant and of persons orbodieswhichhave financial year, includingthenames made by theCouncil duringthe a listofdonations andgrants the Act; appointed undersection 224 of a register ofauthorised officers terms andthevalue ofthelease; toother party thelease andthe lessee, includingthenameof into by theCouncil aslessor or equipment orvehicles entered land, buildings, plant, computer and operating leases involving details ofall property, finance . General Community Grant Program 2012/13 Appendix 4 Bass Coast Acoustic MusicClub Applicant Bass Coast Artists’ Society Bass Coast Artists’ Society (auspiced by Dads inDistress Inc) Bass Coast Men’s Health andWellbeing Alliance Cape Paterson Lifesaving Surf ClubInc Group, Inc. Corinella Men’s andDistrict ShedandWoodies Corinella CFA Brigade Corinella CFA Brigade Corinella CFA Brigade ooe a eevsCmiteo aaeetChristmasCarols at theBay Coronet Bay Reserves Committee ofManagement Cowes Yacht ClubInc Inverloch Community House Inc Inverloch ClubInc Windsurfing Lions ClubofInverloch Inc andDistrict hli sadadDsrc eelgclSceyIcSpreading theword IslandPhillip Genealogical andDistrict Inc Society hli sadadDsrc itrclSceyIcUpgrade Island ofPhillip Museum computer equipmentandpurchase of IslandPhillip Historical andDistrict Inc Society Association ofVictoria IslandPhillip GirlGuidesauspiced by theGirlGuides Phillip IslandPhillip Tennis Club Foundation ofVictoria Inc SelfHelpGroup RemoArthritis San c/-TheArthritis South Coast Stars Soccer ClubInc ot ipln nmlAdPw aoeIcAnimal adoptions South Gippsland Animal AidPaws Galore Inc South Gippsland Radio 3mFMInc South Gippsland Radio 3mFMInc Wonthaggi GirlGuides Mitchell House andtheHarvest Centre) Inc Wonthaggi NeighbourhoodCentre (incorporating Wonthaggi Theatrical Group Inc Wonthaggi Theatrical Group Inc Wonthaggi Woodcrafters Inc YMCA Bass Coast

Coast Promotion to ofopportunities participate inlive acoustic musicinBass Project Digital enhancement Putting LightontheSubject Putting South Gippsland Men’s Radio Show (pilot program) Lifesaver training equipment Woodworking equipmentfor theCorinella Men’s andDistrict Shed. Updating Brigade purchased equipmentanditems to assist oncallouts ‘on scene’ at acallout incident To provide Brigade crew members withaconstant safety linkbetween all Replacing Brigade purchased computer Junior Lifejackets andboat trolleys Inverloch Community House –Consultation andNeedsAnalysis Windsurfing forWindsurfing people withdisability Purchase ofaportable wood splitter laptop Start up a Junior Girl Guides Unit on Phillip Island upaJuniorGirlGuidesUnitonPhillip Start Replacement blindsfor tennis/netball club chair-based exercises andNordic pole walking. Purchase equipmentso people in Bass Coast can attend group sessions of of theSouthCoast Stars Soccer ClubInc. Funding to assist withtraining andequipment to thedevelopment support 3mFM data management 3mFM outsidebroadcasting 2013 Relocation to Moonya and replenish toys andmaterials intheChildren’s RoomandT ‘For theChildren’ program to refurbish outdoor climbingframe andslide Youth musical performance: “13−ANew Musical” Purchase ofindustrial grade overlocker Equipment upgrade Bass Coast Children’s Festival oy Libraryoy Allocated Amount $52,037 $2,500 $2,500 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,300 $3,650 $1,000 $1,000 $1,500 $1,300 $2,100 $1,878 $1,857 $1,750 $2,155 $1,927 $1,991 $1,199 $640 $950 $440 $450 $450 75 | Bass Coast Shire Council Annual Report 2012/13 76 | Bass Coast Shire Council Annual Report 2012/13 Minor Capital Grants Program 2012/13 Minor Capital Works Grants Appendix 5 Wonthaggi Tennis District ClubInc Wonthaggi Croquet Club Wonthaggi Bowls ClubInc Wonthaggi Historical andDistrict Society Agricultural Show Horticultural Incstaging Society theBass Coast Summer Wonthaggi Agricultural andDistrict Pastoral and South Gippsland AdultRidingClubInc tate Emergency RemoState San Service RemoPreschoolSan Incorporated Rotary ClubofInverloch Inc Powlett River PrimarySchool IslandPhillip Football ClubInc Newhaven Hall Committee Moonya Community Services Toilet Inc block upgrade Inverloch Recreation Reserve Committee Incorporated Inverloch Cricket Club Gippsland BeefAgricultural EdInc Management Dalyston Recreation Reserve Committee of Dalyston Netball Club Dalyston Football Club Inc Drainage outlet to Bass River Corinella Men’s andDistrict ShedandWoodies Group Bass Recreation Reserve Committee ofManagement Bass Valley LionsClubInternational Inc Applicant Project Repair ofhard-courts –designfees Upgrading ofdrainage to clubgreens andextension offence. Solar Power Project Wonthaggi Railway Station Museum Plans anddesignsfor adaptations andadditions to the Increasing equipmentstorage andundercover exhibition space an even andsafe jumpingsurface Level andbase surface, top surface andgrass seed area to create Lightweight motor pumpfor hydraulic road rescue tools RemoPreschoolSan outdoor playspace Procurement of10x5tandem trailer poles Purchase andinstall new basketball rings/backboard andsupport external barservery andundercover viewing area. Accessible paving ofclubroom forecourt, canteen servery, Air conditioning for Newhaven Hall ServiceDisability –automatic doors Replace covers andpurchase mower Construction ofcattleyards Oval leveling to create improved drainage Notice board andspectator seating New goal posts outtheCorinellaFitting Men’s andDistrict Shed Update food van Allocated Amount $92,737 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $3,500 $ 2,250 $2,250 $3,700 $1,000 $ 2,215 $2,215 $5,000 $5,000 $5,000 $5,000 $5,000 $4,545 $2,825 $2,702 Special Events Grants Appendix 6 YMCA IslandPhillip Football Club Woolamai Beach CapePaterson SLSC, SLSC and Woolamai Beach SLSC Wonthaggi Life Saving Club Wonthaggi HumanPower Grand Prix Wonthaggi GolfClub Wonthaggi AP& &District RailwayPI &District Modellers Cowes Classic/Classic Swim IslandPhillip Jazz Festival Inc. IslandPhillip Football Club/Woolamai Beach SLSC Maru Craft Lions ClubofInverloch Kilcunda Community Development Ass. Kilcunda Bass Football Club. Inverloch JazzFestival Inc. Inverloch Food andWineFestival Inc. GADB ChristmasCarols at theBay Dalyston Football Netball Club Australia Day Celebrations Coronet Bay Reserves Committee ofManagement Corinella Ratepayers andResidentsAssociation Cape Paterson Life Surf Saving Club Bass Valley MusicFestival Inc Bass Coast Triathlon Club Application ATTA H Society Event Bass Coast Children’s Festival Bass Coast Series–prizemoney RemoChannelChallengeSan Cape Paterson Family Fun Festival Wonthaggi HumanPower GP Wonthaggi Seniors Festival ofGolf Bass Coast SummerAgricultural Show Model Railway Exhibition IslandPhillip Jazz Festival Dream Nightat theZoo Inverloch Family Fun Festival Kilcunda Lobster Festival RemoFishingVillageSan Festival Inverloch JazzFestival Inverloch Food &WineFestival Grantville Pirate Festival 4x4 MudRacing Championships Cape Aquathon Serenade at Sunset Bass Coast Community Challenge Total Cash Value of Grant $49,870 $6,000 $4,000 $5,000 $3,000 $3,000 $2,500 $2,500 $2,500 $3,400 $3,300 $1,000 $1,000 $1,000 $1,800 $1,500 $1,500 $1,300 $1,740 $1,730 $600 $500 $500 $500 77 | Bass Coast Shire Council Annual Report 2012/13 78 | Bass Coast Shire Council Annual Report 2012/13 List ofEvents Appendix 6 60 4,000 250 360 Bass Coast Relay for Life 200 postponed Australian Motorcycle Grand Prix 122,460 183 2012 Attendance acle aosb adeih ocr-SnRm Christmascarols Carols by Candlelight Concert- Remo San cancelled 4,000 150 150 July asCatBraua raho lbSprintdistance triathlon commencing andendinginInverloch Bass Coast Barracudas Triathlon Club championship IslandPhillip 8-HourAustralian endurance Island Magic Fresh produce market Great Victorian Bike Ride Inverloch Community Farmers Market Inverloch Family Fun Festival Bass Coast Cycle Challenge IslandPhillip JazzFestival Island ofPhillip Society Artists Fresh produce market Coronet Bay Market Inverloch Community Farmers Market State level car racing at Island Phillip Grand PrixCircuit Victorian State Circuit Racing Championship Victorian Road Race Championship Fresh produce market Shannons Nationals Inverloch Community Farmers Market Fresh produce market Australian Superbike Championship Inverloch Community Farmers Market Fresh produce market Tour ofGippsland Inverloch Community Farmers Market November October September August December Amway India Christmas Carols at theBay Christmas inthePark- Grantville continued Cancelled State level car racing at Island Phillip Grand PrixCircuit following day stop RemoRecreation inSan Reserve, finishat Penguin Reserve the Mass participation bike rideandcamping inGippsland region. Overnight Billy cart racing andfunrun Multi distance cycle challenge andfinishinginInverloch starting Venue based Jazzmusicevent inCowes Team relay fundraising for cancer research exhibitionArt andsales. sizzle, snacks, scones, tea, coffee, cold drinksetc Fresh foods, preserves, bricabrac, clothing, second handfurniture, sausage Grand PrixCircuit Australian leg ofworld Motorcycle racing Championships at Island Phillip State level motorcycle racing at Island Phillip Grand PrixCircuit Various categories ofcar racing at Island Phillip Grand PrixCircuit Superbikes at Island Phillip Grand PrixCircuit Heat ofnational motorcycle championships invarious categories including across Gippsland. Tour commenced Remo inSan Cycling Race -National andInternational riders compete over five days Details

Nature Park attractions Organised visitfor 4,000 Amway representatives from India to Island Phillip Family Christmas carols event –Coronet Bay Foreshore Christmas Carols event continued >> Appendix 6 3,000 18,000 5,000 400 600 CapePaterson280 Aquathon 175 +200spec 2,500 352 3,000 3,500 1,500 5,000 500 10,000 Cowes 4,000 at track Remo San 2,000 2013 Attendance 5,000 500 3,300 5,000 3,000 January Kilcunda Lobster Festival Market International Classic Motorcycle racing at Island Phillip Grand PrixCircuit Inverloch Tourism Association Farmers Island Classic –20thAMCNInternational Celebration ofAustralia Day Celebration ofAustralia Day NightMarket Cowes Australia Day Celebrations Pound Creek Australia Day Celebrations Wonthaggi Australia Day Celebrations Kernot Australia Day Celebrations Cowes Pioneer Bay Aussie BBQBash Fresh produce market Cape Family Festival Inverloch Community Farmers Market IslandPhillip ModelRailway Show Australian 4WDMudFest Bass Coast Agricultural Show Trevor –amusicfestival NightMarket Cowes Glade”Music in“The Kustom Nationals Coronet Bay Market SprintDistance Triathlon Bass Coast Barracudas Triathlon Club Market Inverloch Tourism Association Farmers Carols ontheForeshore –Corinella Fresh produce market Carols by theBay –Cowes Inverloch Community Carols Inverloch Community Farmers Market Carols by Candlelight Wonthaggi Pyramid RockFestival Coronet Bay Fireworks Inverloch Fireworks continued stalls, amusements andlive musicat Kilcunda Foreshore Lobster themedfamily festival includeslobster sales, raffles, meals, market Fresh produce market fabulous music,andexceptional handcrafted work. An enticingrange offinewinesaccompanied by great gourmet food, Celebration ofAustralia Day Celebration ofAustralia Day Celebration ofAustralia Day Biathlon swim –500mSurf and4kmrunthrough streets CapePaterson Quality craft stalls ,live music family activities at CapePaterson Foreshore Model train exhibition Cowes Cultural Centre Modified 4WDmudracing at Dalyston Recreation Reserve Agricultural Show Saturday, Equestrian events Sunday –Wonthaggi Family musicfestival Churchill Island exceptional handcrafted work. Fine winesaccompanied by great gourmet food, fabulous music,and Family musicevent the“Glade” inpicnic setting Inverloch Custom car display andlive rockabilly music sizzle, snacks, scones, tea Fresh foods, preserves, bric-a-brac, clothing, second handfurniture, sausage Fresh produce market Relocated to Coronet Bay Foreshore. Fireworks display at conclusion Family Christmascarols event preceded by free family activities onCowes Family Christmascarols inCommunity Inverloch Hall Family carols event withsausage sizzle, face paintingandother activities Details Three day musicFestival withon-site camping Island onPhillip BBQ Family fireworks display Coronet Bay Foreshore after family activities and Family fireworks display at Inverloch Recreation Reserve continued >> 79 | Bass Coast Shire Council Annual Report 2012/13 80 | Bass Coast Shire Council Annual Report 2012/13 Appendix 6 3,000 1,300 1,500 350 276 1,000 10,000 1,200 1,500+ 3,000 90 3,200 68 1,000 300 2013 Attendance 900 1,800 61,500 5,000 Rotary Craft Market NightMarket Cowes Market Inverloch Tourism Association Farmers Wonthaggi HumanPowered Vehicle Fresh produce market Pet Expo Grantville Pirate Festival Inverloch Community Farmers Market Keeping KidsonTrack Fun Run Inverloch Food andWineFestival Shannons Classic Cars Music Festival Island Phillip RemoFishingVillageSan Festival NightMarket Cowes 20th Inverloch JazzFestival International Women’s Day Race Spartan Triathlon Race 500mswim/25km bike/5km runat CapePaterson Bass Coast Barracudas Triathlon Club Cowes Classic Powlett River Downs CampDraft Picnichorse racing at picturesque mainland Woolamai Racetrack. Features Woolamai PicnicRaces (Woolamai CupDay) Serenade at Sunset Churchill Island MSO March February Inverloch Tourism Farmers Market Fresh produce market World Superbike Championship Inverloch Community Farmers Market NightMarket Cowes continued Street Craft Market Inverloch exceptional handcrafted work. Fine winesaccompanied by great gourmet food, fabulous music,and Fresh produce market Reserve. 24 hour recumbent pedal car endurance race at Wonthaggi Recreation related stalls Includes petparade, obedience displays, microchipping andanimal/pet Council sponsored petexpo to promote responsible petownership. Pirate themedfamily festival at MaruCraft, Grantville Family Fun RunonRailTrail from Kilcunda exhibitions andmusical entertainment Local food andwinefestival the“Glade” Inverloch. Includedcooking International historic car racing event at Island Phillip Grand PrixCircuit Two day musicfestival at Island Phillip WineryBerry’s Beach Road Remo Foreshore other activities andrides.Coincided withemergency services display. San Fishing themedfamily festival. Includedfishrelated stalls anddisplays with exceptional handcrafted work. Fine winesaccompanied by great gourmet food, fabulous music,and performances. Includesstreet parade andmarket Four day Jazzmusicfestival. Various ticketed venues andfree street andpark International Women’s Day Luncheons 7km endurance race withobstacles -Wonthaggi MotoX Complex streets. Sunday 800mand2kmswims Cowes front beach Saturday Biathlon -500mswim Cowes front beach and4kmrunthrough Cattle drafting onhorseback “Powlett Downs” Lance Creek Woolamai Cup Opera andclassical musicperformances at Churchill Island Recital by MelbourneSymphonyOrchestra at Churchill Island Details

Fresh produce market Island Grand PrixCircuit International motor cycle racing invarious classes upto Superbikes at Phillip fabulous music,andexceptional handcrafted work. An enticingrange offinewinesaccompanied by great gourmet food, continued >> Appendix 6 Juniorcycling racing at Wonthaggi Recreation Reserve Leongatha Cycling ClubJuniorExperience 2,500 80+120 spec 500 200 2,000 200 200 2013 Attendance 4,000 1,200 nelc omnt amr aktFresh produce market Inverloch Community Farmers Market Fresh produce market Shannons National Victorian Road Race Championship Inverloch Community Farmers Market National MotoX Wonthaggi Anzac Day Activites Wonthaggi Anzac Day Activites Inverloch Fresh produce market Anzac Day Activites Cowes Anzac Day Activites Bass Inverloch Community Farmers Market Bass Coast Relay for Life State level car racing at Island Phillip Grand PrixCircuit Victorian State Circuit Racing Championship Easter Fun Festival –Churchill Island Coronet Bay Beach Fair Coronet Bay Market June May April continued National level car racing at Island Phillip Grand PrixCircuit State level car racing at Island Phillip Grand PrixCircuit National MotoX Championships at theWonthaggi MotoX Complex Dawn Service. March to cenotaph service followed by refreshments at RSL Dawn Service followed by other activities refreshments at RSL Dawn Service followed breakfast March at RSL. to cenotaph followed by Dawn Service followed by other activities Reserve 18 hourteam relay fundraiser for cancer research at Cowes Recreation exhibition andfestival activities. Family Easter festival withchildrens entertainment, displays, working horse children’s races, food, drinkandlive music Family fair ontheforeshore at Coronet Bay withcarnival attractions, General market at Coronet Bay Recreation Reserve Details

81 | Bass Coast Shire Council Annual Report 2012/13 82 | Bass Coast Shire Council Annual Report 2012/13 2. GoodGovernance2. 1. Advocacy Performance Statement Appendix 7 Framework Planning Corporate Progress Develop a Activity Policy Engagement Community Review the Gaming Policy Progress Review the Activity planning phases. demonstrates theconnections between thevarious be developed into avisual representation that Planning Framework andhave requested that it meeting on22October endorsed theCorporate The Strategic Planning Implementation Group at its Adopted by Council May 2013 Coast PrimaryCare Partnership. planned withSouthGippsland Shire andtheSouth forum. TheProblem GamblingPrevention Forum was Councillor attended theVLGA Responsible Gambling consultation hasbeenundertaken. Officers anda demonstrate to theVCGLR that arobust community step was taken ontheadvice oftheVLGA inorder to post acommunity forum to beheld onJuly 8.This community consultative committee to beestablished 1 outliningthesteps for thedevelopment ofa briefingwasA further given to Council onMay regarding arevised policy. report isproposed to bepresented to Council inMay principles to apply to thefuture policy. Afurther February. Councillors provided feedback onthe A workshop was held withtheCouncillors on6 Area Responsibility Officer Chief Executive Director Development and Economic Community Director Development and Economic Community Area Responsibility agtMaueStatus Measure Target 2013 30 June 2013 30 June 2013 31 May agtMaueStatus Measure Target developed Framework adopted Policy adopted Policy Completed Completed completed Not 4. Business Prosperity 3. Sustainable Environment Plan Development the Economic Complete Use Plan Integrated Land Gippsland Progress Complete the Activity service delivery review to improve Management Crown Land Progress Undertake a Activity August/September 2013. Plan bepresented will to Council for adoption in It isanticipated that thefinal Economic Development Development Plan. until that was adopted before finalising theEconomic in theCouncil Plan 2013-2017itwas prudentto wait June 2013.Asthekey strategies are based uponthose been completed andwas presented to Council on19 A draft Economic Development Plan 2013-2017has draft dueto State Government coordination processes. been adelay inthecompletion ofthe consultation with Council isscheduled for 24 April2013.There has The consultation draft isnearing completion. A briefing 3. Identifyland for whichthefollowing applies: Establish principles for2. future land management, 1. Create aregister for Council owned andCouncil review recommended that Council : to Council at aPolicy Workshop on3July 2013.The The review was completed andthefindings presented Council asowner ormanager. addition parcels offurther ofland acquired by is regularly reviewed andupdated, includingthe managed coast andbushland allotments, which » » »

offset scheme. preserve vegetation, through anative vegetation work more closely withadjacent land managers transfer land, to orfrom Council intervals retain thestatus quo, withreview at future Director Environment Planning and Area Responsibility Director Development and Economic Community Director Environment Planning & Area Responsibility 2013 30 June agtMaueStatus Measure Target 2013 30 June 2013 30 June agtMaueStatus Measure Target completed Review adopted Plan completed Plan Completed completed Not completed Not 83 | Bass Coast Shire Council Annual Report 2012/13 84 | Bass Coast Shire Council Annual Report 2012/13 5. Cohesive Communities Improvement Plan Policy andAsset Management Review theAsset Strategy Progress Adopt theRural Activity Policy are beingmet. ensure that the objectives ofthe Asset Management Implementation oftheAsset Improvement Plan will and reviewed through theMAV STE The Asset Improvement Plan hasbeendeveloped to risk. needs ofthecommunity andminimisingexposure meeting thepresent andfuture service delivery optimise thewhole oflife costs ofitsassets, whilst The objective ofthispolicy isto enable Council to December 2012. adopted by Council at itsordinary meetingof12 The Asset Management Policy was reviewed and of theproject commences. outcomes oftheconsultation before thenext stage November Council 2012. bebriefed will onthe Submissions ontheDirections Paper closed on30 underway withthree publicsessions inNovember. Council. Consultation onDirections Paper Directions Paper prepared andreviewed with P program. Director Infrastructure Director Environment Planning and Area Responsibility 2013 30 June 2013 30 June agtMaueStatus Measure Target adopted Policy adopted Strategy Completed completed Not Performance Statement Certification Appendix 8 85 | Bass Coast Shire Council Annual Report 2012/13 86 | Bass Coast Shire Council Annual Report 2012/13 Performance Statement –Auditor’s Report Appendix 9 Performance Statement –Auditor’s Report Appendix 9 87 | Bass Coast Shire Council Annual Report 2012/13 88 | Bass Coast Shire Council Annual Report 2012/13 Annual Financial for Report the year ended30June2013

BASS COAST SHIRE COUNCIL Financial Reports Table of Contents GENERAL PURPOSE FINANCIAL REPORT Page

Financial Statements Comprehensive Income Statement 90 Balance Sheet 91 Statement of Changes in Equity 92 Statement of Cash Flows 93 Notes to Financial Statements Introduction Note 1 Significant accounting policies 94-100 Note 2 Rates and garbage charges 101 Note 3 Statutory fees and fines 101 Note 4 User fees 101 Note 5 Grants 102-103 Note 6 Contributions 103 Note 7 Reimbursements 103 Note 8 Other revenue 104 Note 9 Net gain (loss) on disposal of property, plant and equipment, infrastructure 104 Note 10 Employee expenses 104 Note 11 Materials and services 105 Note 12 Bad and doubtful debts 106 Note 13 Depreciation 106 Note 14 Finance costs 106 Note 15 Other expenses 106 Note 16 Investment in associates 107 Note 17 Cash and cash equivalents 107 Note 18 Trade and other receivables 108 Note 19 Other Assets 108 Note 20 Property, infrastructure, plant and equipment 109-112 Note 21 Other non-current assets 113 Note 22 Trade and other payables 113 Note 23 Trust funds and deposits 113 Note 24 Interest - bearing loans and borrowings 113 Note 25 Provisions 114 Note 26 Reserves 115 Note 27 Reconciliation of cash flows from operating activities to surplus (deficit) 116 Note 28 Reconciliation of cash at year-end to cash and cash equivalents 116 Note 29 Financing arrangements 116 Note 30 Superannuation 117-118 Note 31 Commitments 119 Note 32 Operating lease commitments 120 Note 33 Contingencies 120 Note 34 Financial instruments 121-126 Note 35 Auditors' remuneration 126 Note 36 Events occurring after balance date 126 Note 37 Related party transactions 127 Note 38 Income, expenses and assets by functions/activities 128-129 Note 39 Financial ratios (performance indicators) 130-131 Certification of the Financial Report 132

STANDARD STATEMENTS Standard Income Statement 133-135 Standard Balance Sheet 136-137 Standard Cash Flows Statement 138-139 Standard Statement of Capital Works 140-143 Note 1 Basis of preparation of Standard Statements 144 Certification of the Standard Statements 145 Independent Auditor's Report 146-147 Bass Coast Shire Council 2012/2013 Financial Report Page 90

Comprehensive Income Statement for the year ended 30 June 2013

Note 2012/13 2011/12 $'000 $'000

Revenue Rates & garbage charges 2 40,384 37,506 Statutory fees and fines 3 1,641 1,723 User fees 4 3,266 3,071 Grants - recurrent 5 9,450 11,352 Grants - non-recurrent 5 3,792 2,849 Contributions 6 6,229 14,201 Reimbursements 7 1,155 806 Other revenue 8 511 635 Interest 812 1,048 Rent 48 56 Net gain(loss) on disposal of property, plant and equipment, infrastructure 9 (60) (166) Share of net profit/(loss) of associates accounted for using the equity method 16 119 (431) Total Revenue 67,347 72,650

Expenses Employee expenses 10 (24,248) (26,278) Materials and services 11 (23,484) (21,770) Bad and doubtful debts 12 (21) (22) Depreciation 13 (11,223) (9,604) Finance costs 14 (539) (547) Other expenses 15 (860) (870) Assets written off (399) (624)

Total Expenses (60,774) (59,715)

Surplus / (Deficit) 6,573 12,935

Other comprehensive income Net asset revaluation increment 20 14,663 -

Comprehensive Result 21,236 12,935

The above comprehensive income statement should be read with the accompanying notes Bass Coast Shire Council 2012/2013 Financial Report Page 91

Balance Sheet as at 30 June 2013

Note 2012/13 2011/12 $'000 $'000 Assets

Current Assets Cash and cash equivalents 17 17,014 24,307 Trade and other receivables 18 5,359 6,469 Other assets 19 462 372 Total current assets 22,835 31,148

Non-current assets Trade and other receivables 18 1,732 1,129 Investment in associates accounted for using the equity method 16 572 453 Property, infrastructure, plant and equipment 20 486,624 464,738 Other non-current assets 21 40 40 Total non-current assets 488,968 466,360

Total Assets 511,803 497,508

Liabilities

Current liabilities Trade and other payables 22 3,390 6,760 Trust funds and deposits 23 1,976 2,188 Interest-bearing loans and borrowings 24 1,134 1,049 Provisions 25 6,239 5,717 Total current liabilities 12,739 15,714

Non-current liabilities Trade and other payables 22 - 4,079 Interest-bearing loans and borrowings 24 6,633 6,767 Provisions 25 1,033 786 Total non-current liabilities 7,666 11,632

Total liabilities 20,405 27,346

Net Assets 491,398 470,162

Equity

Accumulated surplus 244,280 237,131 Reserves 26 247,118 233,031

Total Equity 491,398 470,162

The above balance sheet should be read with the accompanying notes Bass Coast Shire Council 2012/2013 Financial Report Page 92

Statement of Changes in Equity for the year ended 30 June 2013

Asset

Accumulated Revaluation Other Total Surplus Reserve Reserves

Note $'000 $'000 $'000 $'000 2012/13 Balance at beginning of the financial year 470,162 237,131 230,780 2,251

Surplus (deficit) for the year 6,573 6,573 - -

Net asset revaluation increment (decrement) 26 14,663 - 14,663 -

Transfer to other reserves 26 - (238) - 238

Transfer from other reserves 26 814 (814)

Balance at end of the financial year 491,398 244,280 245,443 1,675

2011/12 Balance at beginning of the financial year 465,316 229,323 233,714 2,279

Prior period adjustment - correction of error, refer note 1 (w) (8,089) (5,155) (2,934) -

Adjusted balance at beginning of the financial year 457,227 224,168 230,780 2,279

Surplus (deficit) for the year 12,935 12,935 - -

Net asset revaluation increment (decrement) 26 - - - -

Transfer to other reserves 26 - (250) - 250 Transfer from other reserves 26 - 278 - (278) Balance at end of the financial year 470,162 237,131 230,780 2,251 The above statement should be read with the accompanying notes Bass Coast Shire Council 2012/2013 Financial Report Page 93

Statement of Cash Flows for the year ended 30 June 2013 2012/13 2011/12 Inflows/ Inflows/ (Outflows) (Outflows) Notes $'000 $'000 Cash flows from operating activities

Rates (including garbage charges) 39,775 37,347 Statutory Fees 1,298 1,443 Parking fees and fines 324 284 User charges and other fines (inclusive of GST) 3,395 3,134 Grants (inclusive of GST) 13,242 12,955 Contributions (inclusive of GST) 3,156 5,111 Reimbursements (inclusive of GST) 604 908 Interest 804 1,063 Rents (inclusive of GST) 50 75 Other receipts (inclusive of GST, including GST component of investing activities) 634 669 Net GST refund (payment) 2,155 2,201 Payments to suppliers (inclusive of GST) (28,753) (20,395) Payments to employees (including redundancies) (27,465) (21,533) Finance costs (539) (547) Other payments (including GST component of investing activities) (1,882) (2,268) Net cash provided by (used in) operating activities 27 6,798 20,447

Cash flows from investing activities

Payments for property, plant and equipment, infrastructure (14,295) (18,359) Proceeds from sale of property, infrastructure, plant and equipment 464 332 Payments for other financial assets Net cash provided by (used in) investing activities (13,831) (18,027)

Cash flows from financing activities .

Trust funds and deposits (212) 192 Proceeds from interest bearing loans and borrowings 1,000 1,000 Repayment of interest bearing loans and borrowings (1,049) (981) Net cash provided by (used in) financing activities (261) 211

Net increase (decrease) in cash and cash equivalents (7,293) 2,631

Cash at the beginning of the financial year 24,307 21,676 Cash and cash equivalents 17 17,014 24,307

Financing arrangements 29

The above statement should be read with the accompanying notes Bass Coast Shire Council 2012/2013 Financial Report Page 94

Notes to the Financial Report for the year ended 30 June 2013 Introduction

(a) The Bass Coast Shire Council was established by an Order of the Governor in Council on December 1, 1994 and is a body corporate. The Council's main office is located at 76 McBride Avenue, Wonthaggi, Victoria, 3995

(b) The purpose of the Council is to; - provide for the peace, order and good government of its municipal district; - to promote the social, economic and environmental viability and sustainability of the municipal district; - to ensure that resources are used effectively and services are provided in accordance with the Best Value Principles to best meet the needs of the local community; - to improve the overall quality of life of people in the local community; - to promote appropriate business and employment opportunities; - to ensure that services and facilities provided by the Council are accessible and equitable; - to ensure the equitable imposition of rates and charges; and - to ensure transparency and accountability in Council decision making.

This financial report of Bass Coast Shire Council is a general purpose financial report that consists of a Comprehensive Income Statement, a Balance Sheet, a Statement of Changes in Equity, a Cash Flow Statement and notes accompanying these statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group interpretations, the Local Government Act 1989 and the Local Government (Finance & Reporting) Regulations 2004.

External Auditor - Auditor-General of Victoria Internal Auditor - HLB Mann Judd Solicitors - Deacons, Duncans Lawyers, Luscombe Colahan - Barristers & Solicitors, Macquarie Lawyers & Specialists, Phillips Fox, Maddocks Bankers - National Australia Bank Website Address - www.basscoast.vic.gov.au

Note 1 Significant Accounting Policies

(a) Basis of Accounting

This financial report has been prepared on an accrual and going concern basis.

The financial report has also been prepared under the historical cost convention except where specifically stated in notes 1(g), 1(i), 1(r), 1(t), 1(u).

All entities controlled by Council that have material assets or liabilities, such as Special Committees of Management, have been included in this financial report. All transactions between these entities and the Council have been eliminated in full.

Unless otherwise stated, all accounting policies are consistent with those applied in prior years. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives.

(b) Revenue recognition

Rates, grants and contributions

Rates, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over the assets comprising these receipts.

Control over assets acquired from rates is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.

A provision for doubtful debts on rates has not been established as unpaid rates represents a charge against the rateable property that will be recovered when the property is next sold.

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.

Income is recognised when the Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Council and the amount of the contribution can be measured reliably. Bass Coast Shire Council 2012/2013 Financial Report Page 95

Note 1 Significant Accounting Policies (cont.)

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in note 5. The note also discloses the amount of unused grant or contribution from prior years that was expended on Council's operations during the current year.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided at balance date.

User fees and fines

User fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. A provision for doubtful debts is recognised when collection in full is no longer probable.

Sale of property, infrastructure plant and equipment The profit or loss on sale of an asset is determined when control of an asset has irrevocably passed to the buyer.

Interest and rents

Interest and rents are recognised as revenue on a proportional basis when the payment is due, the value of the payment is notified, or the payment is received, whichever first occurs.

Buildings, land improvements, plant and equipment, infrastructure, heritage assets, and other assets having limited useful lives are systematically depreciated over their useful lives to the Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually.

Where infrastructure assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component. Land and road earthworks are not depreciated. Straight line depreciation is charged based on the residual useful life as determined each year. Major depreciation periods are listed below and are consistent with the prior year unless otherwise stated;

Period

Land improvements 20 to 100 years Buildings 30 to 100 years Plant and equipment 5 to 10 years Roads, streets and bridges 10 to 100 years Drainage 50 to 100 years Other structures 30 to 100 years Furniture, equipment and I.T. equipment 3 to 10 years

(d) Inventories

Inventories held for distribution are measured at cost adjusted when applicable for any loss of service potential. Other inventories are measured at the lower of cost and net realisable value.

(e) Repairs and maintenance

Routine maintenance, repair costs, and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated. The carrying value of the replaced asset is expensed.

(f) Finance costs Finance costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Except where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised. Finance costs include interest on bank overdrafts, interest on borrowings and finance lease charges. Bass Coast Shire Council 2012/2013 Financial Report Page 96

Note 1 Significant Accounting Policies (cont.)

(g) Recognition and measurement of assets

Acquisition

The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the amount for which the asset could be exchanged between knowledgeable willing parties in an arm's length transaction.

Where assets are constructed by Council, cost includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.

The following classes of assets have been recognised in note 20. In accordance with Council's policy, the threshold limits detailed below have applied when recognising assets within an applicable class and are consistent with prior year unless otherwise stated;

Threshold

2012/13

ASSET CLASS $'000

Land 10 Land under roads 10 Land improvements 10 Buildings 10 Plant and equipment 10 Roads, streets and bridges 10 Drainage 10 Other structures 10 Furniture, equipment and I.T. equipment 5

Revaluation Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment are measured at fair value, being the amount for which the assets could be exchanged between knowledgeable willing parties in an arms length transaction. At balance date, the Council reviewed the carrying value of the individual classes of assets within land and buildings and infrastructure assets to ensure that each asset materially approximates its fair value. Where the carrying value materially differs from the fair value the class of asset is revalued.

In addition, Council undertakes a formal revaluation of land, buildings and infrastructure assets on a regular basis, usually at intervals of 2 years. The valuation is performed either by experienced council officers or independent experts.

Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.

Land under roads

Council first recognised the value of land under roads it controlled as at 30 June 2008 at fair value. Land under roads acquired after 30 June 2008 is brought to account using the fair value basis. Council has subsequently revalued land under roads effective 30 June 2013.

(h) Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts.

(i) Accounting for investments in associates

Council's investment in associates is accounted for by the equity method as the Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in the Council's share of the net assets of the entities. The Council's share of the financial result of the entities is recognised in the income statement. Bass Coast Shire Council 2012/2013 Financial Report Page 97

Note 1 Significant Accounting Policies (cont.) (j) Investments Investments, other than investments in associates, are measured at cost.

(k) Tender deposits Amounts received as tender deposits and retention amounts controlled by Council are recognised as Trust funds until they are returned or forfeited (refer to note 23)

(l) Employee benefits

Wages and salaries

Liabilities for wages and salaries and time in lieu are recognised and are measured as the amount unpaid at balance date, and include appropriate oncosts such as workcover charges.

Annual leave Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date, and are measured at the amount expected to be paid, including appropriate oncosts, when the accrued obligation is settled.

Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.

Long service leave

Long service leave entitlements payable are assessed at balance date having regard to current employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment on settlement, and experience of employee departure per year of service. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year have been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth Bond Rates are used for discounting future cash flows.

In accordance with Council's enterprise bargaining agreement, employees will accrue a pro-rata long service leave entitlement following seven years of service with Bass Coast Shire Council. Superannuation

A liability is recognised in respect of Council's present obligation to meet the unfunded liability of defined benefit superannuation schemes to which its employees are members. The liability is defined as the Council's share of the scheme's unfunded position, being the difference between the present value of employees’ accrued benefits and the net market value of the scheme’s assets at balance date. The liability also includes applicable contributions tax of 17.64%.

The superannuation expense for the reporting year is the amount of the statutory contribution the Council makes to the superannuation plan which provides benefits to its employees together with any movements (favourable/unfavourable) in the position of any defined benefits schemes. Details of these arrangements are set out in note 30.

(m) Leases

Operating Leases

Lease payments for operating leases are required by the accounting standard to be recognised on a straight line basis, rather than expensed in the years in which they are incurred.

(n) Allocation between current and non-current

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next twelve months, being the Council's operational cycle.

The exception to this is employee benefits where all amounts are classified as current unless Council has an unconditional right to defer settlement beyond twelve months.

(o) Agreements equally proportionately unperformed

The Council does not recognise assets and liabilities arising from agreements that are equally proportionately unperformed in the balance sheet. Such agreements are recognised on an 'as incurred' basis.

(p) Web site costs

Costs in relation to websites are charged as an expense in the period in which they are incurred. Bass Coast Shire Council 2012/2013 Financial Report Page 98

Note 1 Significant Accounting Policies (cont.)

(q) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(r) Impairment of assets

At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.

(s) Rounding

Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars.

(t) Non-current assets held for sale

A non-current asset held for sale is measured at the lower of its carrying amount and fair value less costs to sell.

(u) Financial guarantees

Financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is initially measured at fair value, and if there is material increase in the likelihood that the guarantee may have to be exercised, at the higher of the amount determined in accordance with AASB137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate. In the determination of fair value, consideration is given to factors including the probability of default by the guaranteed party and the likely loss to Council in the event of default. Bass Coast Shire Council 2012/2013 Financial Report Page 99

Note 1 Significant Accounting Policies (cont.)

(v) Pending accounting standards The Council follows the Accounting Standards for Local Government entities.

The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are not yet effective. They have not yet been adopted in preparation of the financial statements at reporting date.

Application date for Standard / Interpretation Summary Impact on Local Government financial statements Council AASB 9: Financial Instruments AASB 9 standard is one of a series of amendments The impact is not likely to be extensive in the local government Beginning Jan-2015 that are expected to eventually replace AASB139. sector. Although it will vary considerably between entities. While During 2010-11, the standard will be expanded to the rules are less complex than those of AASB 139, the option include new rules on measurement of financial to show equity instruments at cost has been largely removed, liabilities and hedge accounting. Currently the which is likely to lead to greater volatility within the income existing provisions of AASB 139 will continue to statement. However, it may also lead to an improved financial apply in these areas. position for some entities.

AASB 9 simplifies the classifications of financial This will also create a requirement to measure some instruments The standard was assets into those to be carried at amortised cost and annually that has not previously existed. amended in 2012 to those to be carried at fair value - the 'available for delay the effective date sale' and 'held-to-maturity' categories no longer by two years exists. AASB 9 also simplifies requirements for (previously 1 January embedded derivatives and removes the tainting rules 2013) associated with held-to-maturity assets.

The new categories of financial assets are; Amortised cost - those assets with basic loan features. Fair value through other comprehensive income - this treatment is optional for equity instruments not held for trading (this choice is made at initial recognition and is irrevocable). Fair value through profit and loss - everything that does not fall into the above two categories.

The following changes also apply; Investments in unquoted equity instruments must be measured at fair value. However, cost may be appropriate measure of fair value where there is insufficient more recent information available to determine a fair value. There is no longer any requirement to consider whether 'significant or prolonged' decline in the value of financial assets has occurred. The only impairment testing will be on those assets held at amortised cost, and all impairment will be eligible for reversal.

Similarly, all movements in the fair value of a financial asset now go to the income statement, or, for equity instruments not held for trading, other comprehensive income. There is no longer any requirement to book decrements through the income statement, and increments through equity.

The standard introduces a single model of control, The definition of 'control' is based on various factors and is Beginning Jan-2013 AASB 10 Consolidated Financial which is used to determine whether an investee wider than just those entities in which an investee holds greater Statements must be consolidated. than 50% of the voting rights. While the effects of this standard The existence of control is determined based on: are not expected to be significant in the local government sector, there may be some increase in the number of entities required Power to direct the activities of an investee to be consolidated as subsidiaries. (irrespective of whether such power is exercised). Exposure, or rights, to variable returns from its involvement with the investee. The ability to use its power over the investee to affect the amount of the investor's returns. AASB 119 Employee Benefits, AASB The standards require the recognition of all re- As there is inadequate information available, Council is unable to Beginning Jul-2013 2011-10 Amendments to Australian measurements of defined benefit liabilities/assets assess the full impact. Accounting Standards arising from immediately in other comprehensive income (removal of 2011-11. Amendments to the so-called "corridor" method), the immediate AASB 119 (Sep-2011) arising from recognition of all past service cost in profit or loss and reduced disclosure requirements. the calculation of a net interest expense or income by applying the discount benefit liability or asset. Bass Coast Shire Council 2012/2013 Financial Report Page 100

Note 1 Significant Accounting Policies (cont.)

(w) Accounting error

Opening Accumulated Surplus has been adjusted for recognition of the removal of drainage assets that were duplicated in the asset database. This duplication resulted from field surveys undertaken and brought to account as identified assets in 2005/2006. This has resulted in the following prior period adjustments;

2011/12 2011/12

(prior year) restated

$'000 $'000

Comprehensive income statement: Annual depreciation - reduction in expense 9,762 9,604

Surplus for year - increase 12,777 12,935

Balance Sheet: Property, infrastructure, plant and equipment - net reduction in assets 472,669 464,738

Accumulated surplus - decrease 242,128 237,131

Reserves - decrease in revaluation reserve 235,965 233,031

Statement of changes in equity: Opening accumulated surplus - decrease 229,323 224,168

Opening asset revaluation reserve - decrease 233,714 230,780

Surplus for year - increase 12,777 12,935

Note 20 Property, infrastructure, plant and equipment Drainage assets replacement cost - reduction 82,668 66,869 Drainage accumulated depreciation - reduction 18,643 10,775 Bass Coast Shire Council 2012/2013 Financial Report Page 101

Note 2 Rates & garbage charges 2012/13 2011/12 $'000 $'000 Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipal district. The CIV of a property is its estimated market value. The valuation base used to calculate general rates for 2012/13 was $11,096 million (2011/12 $10,351 million). The 2012/13 rate in the CIV dollar was .0014629 - .0043887 (2011/12, .0014509 - .0043526).

Residential 27,449 25,117 Commercial 1,771 1,620 Industrial 295 270 Rural 3,453 3,449 Supplementary rates & rate adjustments 495 527 Garbage charge 6,654 6,267 Interest on rates & garbage charges 267 256 40,384 37,506

The date of the last general revaluation of land for rating purposes within the municipal district was 1 January 2012 and the valuation was first applied in the rating year commencing 1 July 2012.

The date of the next general revaluation of land for rating purposes within the municipal district is 1 January 2014 and the valuation will be first applied in the rating year commencing 1 July 2014.

Note 3 Statutory fees and fines

Town planning fees 376 591 Health and local law registration fees 403 339 Land information certificates 123 101 Parking, local law fees, fines & other statutory fees 324 283 Developer contributions (open space) * 193 239 Building services fees 142 141 Developer contributions (drainage & non standard street lighting) * 15 9 Other statutory fees and charges 65 20 1,641 1,723 * Open space fees received during the year are transferred to other reserves pursuant to section 18 of the Subdivision Act 1988 (Resort and Recreation Reserve) (refer Note 26). Parking contributions and drainage / non-standard lighting contributions received are also transferred to other reserves (car parking & drainage/non-standard lighting reserves - refer note 26).

Note 4 User Fees Public hall fees 51 41 Caravan park fees 380 402 Aged services fees 642 664 Waste management fees 1,751 1,693 Boat launching fees 130 28 Art centre fees 107 98 Special event fees 3 - Other fees & charges 202 145 3,266 3,071 Bass Coast Shire Council 2012/2013 Financial Report Page 102

Note 5 Grants 2012/13 2011/12 $'000 $'000 Grants were received in respect of the following :

Summary of grants Federally funded grants 1,665 2,478 State funded grants 11,577 11,723 Others - - Total 13,242 14,201

Recurrent Adult day care 141 128 Community health 212 168 Environment 29 30 Home help / linkages 1,877 1,820 Other 80 14 Planning & development 92 94 Roads To Recovery 690 1,358 Senior citizens centres 43 21 Transport 979 651 Victorian Grants Commission - local roads 1,237 1,666 Victorian Grants Commission - unallocated 4,070 5,402 Total recurrent 9,450 11,352 Non-recurrent Community health 203 424 Education 327 262 Environment 360 20 Other 32 144 Recreation 393 382 Transport 2,477 1,028 Tourism - 589 Total non-recurrent 3,792 2,849 Total 13,242 14,201

Capital 4,799 4,122 General purpose 8,443 10,079

13,242 14,201 Bass Coast Shire Council 2012/2013 Financial Report Page 103

2012/13 2011/12 Note 5 Grants (cont.) $'000 $'000 Conditions on grants Grants recognised as revenue during the year they were obtained on the condition that they be expended in a specified manner that had not occurred at balance date were:

Community health 58 190 Economic development 80 - Planning and development - 39 Recreation 240 170 Transport 202 45

580 444 Grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were:

Community health 34 - Recreation 54 - Transport 36 - Other 5 804 129 804 Net increase (decrease) in restricted assets resulting from grant revenues for the year: 451 (360)

Note 6 Contributions (a) Cash

Special charge scheme contributions 82 6,370 State Emergency Services - Government support fund 50 49 Payments (in lieu of rates) 61 60 Private works & other contributions 99 64 Other contributions 847 583 1,139 7,126

(b) Non-monetary assets Value of infrastructure built by private developers (subdivisions) & land contributed 5,090 7,075 5,090 7,075

Total 6,229 14,201

Note 7 Reimbursements

Public convenience repairs 18 16 Environmental management 597 517 Economic development 136 175 Valuation services 385 76 Other 19 22

1,155 806 Bass Coast Shire Council 2012/2013 Financial Report Page 104

2012/13 2011/12 Note 8 Other revenue $'000 $'000

Operating Information centre sales 451 475 Other 21 96 472 571

Non-operating Miscellaneous land sales 2 5 Other 37 59 39 64

511 635

Note 9 Net gain (loss) on disposal of property, plant and equipment, infrastructure

Plant & equipment

Proceeds from sale of assets 480 332 Written down value of assets sold (540) (498)

Net gain/(loss) on disposal (60) (166)

Note 10 Employee expenses Wages and salaries (including casual employees) 17,805 16,290 Annual leave and long service leave 3,790 3,423 Superannuation * 1,805 5,811 Workcover 719 628 Fringe benefits tax 129 126 24,248 26,278 * Superannuation expenses (2011/12) include $4.0M additional liability as advised by Local Authorities Superannuation Fund (refer: Note: 30)

Council staffing Number of employees 430 432 Equivalent full-time employees 324 324 Bass Coast Shire Council 2012/2013 Financial Report Page 105

2012/13 2011/12 $'000 $'000 Note 11 Materials & services

Contract payments * Road maintenance 1,028 1,126 * Parks & amenities maintenance 239 299 * Waste management 4,751 4,666 * Public convenience cleaning & repairs 431 403 * Management of leisure centres 901 758 * Provision of cleaning of council buildings 66 71 * Election costs 180 - * Public lighting 283 196 * Valuation services 21 235 * Asset Management 279 35 * Information technology 327 260 * Economic development & tourism 341 225 * Recreational facilities maintenance 271 64 * Other 283 260 9,401 8,598

Materials and services * Home care 356 321 * Public lighting 198 208 * Library services 1,368 1,143 * Special events 279 302 * Insurances 289 32 * Telephone 290 241 * Postage printing & stationery 188 161 * Councillor costs 356 353 * Corporate costs 321 400 * Governance 602 912 * Economic development / tourism costs 469 535 * Election costs 6 17 * Customer service centre costs 272 256 * Banking services 120 123 * Pre-school costs 87 111 * Parks & amenities maintenance services 1,497 1,440 * Maintenance of local roads, streets & drains 1,412 971 * Street beautification 205 227 * Public halls 140 176 * Wonthaggi art centre costs 248 151 * Community development costs 1,181 965 * Foreshore cleaning & maintenance 9 80 * Environmental maintenance costs 1,276 1,216 * Boating facilities maintenance - 34 * Public relations costs 137 150 * Strategic town planning costs 207 184 * Human resources 449 336 * Local laws 365 342 * Information technology 988 881 * Emergency management 240 257 * Council buildings 64 77 * Asset management 262 232 * Other 202 338 14,083 13,172 23,484 21,770 Bass Coast Shire Council 2012/2013 Financial Report Page 106

2012/13 2011/12 $'000 $'000 Note 12 Bad and doubtful debts Rates debtors 21 22

21 22

Note 13 Depreciation

Depreciation was charged in respect of: Land improvements 350 335 Buildings 2,180 2,086 Roads, streets & bridges 6,114 5,450 Drainage 1,002 662 Other structures 287 212 Plant & equipment 1,124 769 Furniture & equipment 166 90 11,223 9,604

Note 14 Finance costs

Interest - borrowings 539 547

539 547

Note 15 Other expenses

Foreshore management - special programs 317 176 Strategic planning - special programs 158 148 Environmental management - special programs 301 414 Planning & community - special projects 57 67 Other 27 65 860 870 Bass Coast Shire Council 2012/2013 Financial Report Page 107

Note 16 Investment in associates 2012/13 2011/12 $'000 $'000 West Gippsland Regional Library Corporation

The Council has a 29% interest in the West Gippsland Regional Library which operates a library service for a number of municipalities.

Council's share of retained profits/(accumulated losses) Council's share of retained profits/(accumulated losses) at start of year (245) 186 Reported profit (loss) for year 131 (431) Council's share of retained profits/accumulated losses at end of year (114) (245)

Council's share of reserves Council's share of reserves at start of year 70 410 Council's share of reserves at end of year 70 70

Movement in carrying value of specific investment Carrying value of investment at start of year 453 884 Share of profit (loss) for year 119 (431)

Carrying value of investment at end of year 572 453

Note 17 Cash and cash equivalents

Cash on hand 5 5 Cash at bank 834 1,226 Term deposits 16,175 23,076 17,014 24,307

Users of the financial report should refer to Note 31 for details of existing Council commitments. Bass Coast Shire Council 2012/2013 Financial Report Page 108

Note 18 Trade and other receivables 2012/13 2011/12 $'000 $'000 Current Rates debtors 1,760 1,188 Parking infringement debtors 2 2 Other debtors * 2,985 2,755 Provision for doubtful debts - other debtors (1) (1) Special charge scheme debtors 613 2,525 5,359 6,469

Non-Current Special charge scheme debtors 1,683 1,080 Loans and advances to community organisations 49 49 1,732 1,129

Total 7,091 7,598

* Aging of (Current) Other debtors The aging of the Council's other debtors at reporting date was; Current (not yet overdue) 2,799 2,587 Past due by up to 30 days 84 42 Past due between 31 and 180 days 44 67 Past due between 181 days and 365 days 51 32 Past due by more than 1 year 7 27 2,985 2,755

Note 19 Other assets

Inventories Inventories for distribution 3 3 Inventories held for sale 31 27 34 30

Prepayments 428 342

462 372 Bass Coast Shire Council 2012/2013 Financial Report Page 109

2012/13 2011/12 $'000 $'000 Note 20 Property, infrastructure, plant and equipment

Summary at cost 39,073 43,228 Less accumulated depreciation (6,201) (6,077) 32,872 37,151

at Council's valuation as at 30 June 2013 348,245 - at Council's valuation as at 30 June 2011 308,009 616,907 Less accumulated depreciation (202,502) (189,320)

453,752 427,587 Total 486,624 464,738

Land & buildings

Land at cost 6 2,652 at Council's valuation as at 30 June 2013 107,087 - at Council's valuation as at 30 June 2011 - 102,270

Total 107,093 104,922

Land under roads at Council's valuation as at 30 June 2013 19,020 - at Council's valuation as at 30 June 2011 - 17,490

19,020 17,490

Land improvements at cost 768 1,766 at Council's valuation as at 30 June 2013 18,182 - at Council's valuation as at 30 June 2011 - 16,324

Less: accumulated depreciation (5,525) (4,939)

Total 13,425 13,151

Buildings at cost 4,031 5,024 at Council's valuation as at 30 June 2013 112,646 - at Council's valuation as at 30 June 2011 - 103,800

Less: accumulated depreciation (63,557) (58,056)

Total 53,120 50,768

Total 192,658 186,331 Bass Coast Shire Council 2012/2013 Financial Report Page 110

Property, infrastructure, plant & equipment (continued) 2012/13 2011/12 $'000 $'000

Other structures at cost 2,105 1,717 at Council's valuation as at 30 June 2013 11,449 - at Council's valuation as at 30 June 2011 - 9,044

Less: accumulated depreciation (4,928) (4,346)

Total 8,626 6,415

Valuation of land and buildings was undertaken by Council's qualified valuer, R. Anthony - AAPI.

Plant and equipment at cost 10,303 10,137 Less: accumulated depreciation (4,403) (4,073) Total 5,900 6,064

Furniture, equipment and information technology equipment at cost 2,156 2,315 Less: accumulated depreciation (1,797) (1,898) Total 359 417

Infrastructure

Roads, streets & bridges at cost 12,907 8,304 at Council's valuation as at 30 June 2012 308,009 302,947 Less: accumulated depreciation (114,525) (111,310)

Total 206,391 199,941

Drains at cost 3,897 1,837 at Council's valuation as at 30 June 2013 79,861 - at Council's valuation as at 30 June 2011 - 65,032 Less: accumulated depreciation (13,968) (10,775) Total 69,790 56,094

Works in progress - at cost 2,900 9,476

Total property, infrastructure, plant & equipment 486,624 464,738 Bass Coast Shire Council 2012/2013 Financial Report Page 111

Note 20 Property, infrastructure, plant and equipment (continued)

ASSETS - RECONCILIATION Reconciliation of the carrying amounts of each class of property, infrastructure, plant and equipment at the beginning and end of the current and previous financial year are set out below.

Revaluation Depreciation Written Written Transfer Balance at Balance at Net work Acquisition increments and down down value from land end of 2012/13 beginning of in process of assets (decrements) amortisation value of of write- held for financial financial year transfers (note 26) (note 13) disposals offs resale year

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Property

land 104,922 492 1,679 - - - 0 - 107,093

land under roads 17,490 97 1,433 - - - - - 19,020

land improvements 13,151 137 (144) (350) - - 631 - 13,425

Total land 135,563 726 2,968 (350) - - 631 - 139,538

buildings 50,768 660 501 (2,180) - - 3,371 - 53,120

other structures 6,415 107 392 (287) - - 1,999 - 8,626

Total buildings and 57,183 767 893 (2,467) - - 5,370 - 61,746 other structures

Total property 192,746 1,493 3,861 (2,817) - - 6,001 - 201,284

Infrastructure

roads 199,941 6,151 - (6,114) - (343) 6,756 - 206,391

drainage ** 56,094 1,392 10,802 (1,001) - - 2,503 - 69,790

Total infrastructure 256,035 7,543 10,802 (7,115) - (343) 9,259 - 276,181

Plant and equipment

plant & equipment 6,064 1,500 - (1,124) (540) - - - 5,900

furniture & fittings 417 109 - (167) - - - - 359

Total plant and 6,481 1,609 - (1,291) (540) - - - 6,259 equipment

Works in progress

land 0 ------

land improvements 105 999 - - - - (631) - 473

buildings 3,224 483 - - - - (3,371) - 336

other structures 1,398 825 - - - - (1,999) - 224

roads 4,114 5,194 - - - (56) (6,756) - 2,496

drains 635 1,239 - - - - (2,503) - (629)

plant & equipment ------

furniture & fittings ------

Total works in 9,476 8,740 - - - (56) (15,260) - 2,900 progress Total property, infrastructure and 464,738 19,385 14,663 (11,223) (540) (399) - - 486,624 plant and equipment **

** Refer correction of error - note 1 (w) Bass Coast Shire Council 2012/2013 Financial Report Page 112

Note 20 Property, infrastructure, plant and equipment (continued)

ASSETS - RECONCILIATION (continued)

Revaluation Depreciation Written Written Transfer Balance at Balance at Net work Acquisition increments and down down value from land end of 2011/12 beginning of in process of assets (decrements) amortisation value of of write- held for financial financial year transfers (note 26) (note 13) disposals offs resale year

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Property

land 102,251 2,648 - - - - 23 - 104,922

land under roads 17,490 ------17,490

land improvements 12,960 440 - (335) - - 86 - 13,151

Total land 132,701 3,088 - (335) - - 109 - 135,563

buildings 50,550 232 - (2,086) - - 2,072 - 50,768

other structures 5,414 491 - (212) - - 722 - 6,415

Total buildings and 55,964 723 - (2,298) - - 2,794 - 57,183 other structures

Total property 188,665 3,811 - (2,633) - - 2,903 - 192,746

Infrastructure

roads 195,573 8,304 - (5,450) - (557) 2,071 - 199,941

drainage 54,470 1,837 - (662) - - 449 - 56,094

Total infrastructure 250,043 10,141 - (6,112) - (557) 2,520 - 256,035

Plant and equipment

plant & equipment 5,650 1,681 - (769) (498) - - - 6,064

furniture & fittings 481 26 - (90) - - - - 417

Total plant and 6,131 1,707 - (859) (498) - - - 6,481 equipment

Works in progress

land 23 - - - - - (23) - -

land improvements 80 111 - - - - (86) - 105

buildings 1,179 4,117 - - - - (2,072) - 3,224

other structures 121 1,999 - - - - (722) - 1,398

roads 2,195 4,057 - - - (67) (2,071) - 4,114

drains 145 939 - - - - (449) - 635 Total works in 3,743 11,223 - - - (67) (5,423) - 9,476 progress Total property, 448,582 26,882 - (9,604) (498) (624) - - 464,738 infrastructure and Bass Coast Shire Council 2012/2013 Financial Report Page 113

2012/13 2011/12 $'000 $'000 Note 21 Other non-current assets Investment in community bank 40 40

40 40

Note 22 Trade and other payables Current Trade creditors 1,165 5,265 Accrued expenses 2,225 1,495 3,390 6,760 Non-current Additional superannuation funding - 4,079

3,390 10,839

Note 23 Trust funds and deposits

Contractors 11 136 Arts centre 3 2 House relocations 46 46 Reserves - recreation 1 1 Development approvals 633 776 Town hall 2 1 Miscellaneous 72 23 Payroll 11 - Unclaimed monies 6 4 Road opening permits 1,064 1,030 Due to cemetery trusts 122 82 Section 173 (Planning & Environment Act) 5 87 1,976 2,188

Note 24 Interest-bearing loans and borrowings

Current Loans - secured 1,134 1,049

Non-current Loans - secured 6,633 6,767

Total 7,767 7,816

The maturity profile for Council's borrowings is:

Not later than one year 1,134 1,049 Later than one year and not later than five years 4,070 3,886 Later than five years 2,563 2,881

7,767 7,816 Bass Coast Shire Council 2012/2013 Financial Report Page 114

Note 25 Provisions Landfill Annual leave Long service leave restoration Total $ '000 $ '000 $ '000 $ '000

2012/13

Balance at beginning of the financial year 2,385 3,548 570 6,503 Additional provisions 2,058 1,461 - 3,519 Amounts used (1,819) (931) - (2,750)

Balance at the end of the financial year 2,624 4,078 570 7,272

2011/12

Balance at beginning of the financial year 2,192 3,088 570 5,850 Additional provisions 1,892 1,265 - 3,157 Amounts used (1,699) (805) - (2,504)

Balance at the end of the financial year 2,385 3,548 570 6,503

2012/13 2011/12 $'000 $'000

Current Annual leave 2,624 2,385 Long service leave 3,615 3,332 6,239 5,717 Non-Current Long service leave 463 216 Landfill restoration provision 570 570 1,033 786 7,272 6,503

Weighted average discount rates adopted in measuring the present value of long service leave. 4.50% 4.31%

(a) Employee entitlements

Short-term employee benefits, that fall due within 12 months after the end of the period Annual leave 1,945 1,796 Long service leave 293 407 2,238 2,203

Long-term employee benefits, that do not fall due within 12 months after the end of the period Annual leave 679 589 Long service leave 3,785 3,141 4,464 3,730 6,702 5,933

(b) Land fill restoration

Under Environment Protection Act 1970, Council is obligated to restore Grantville landfill site to a particular standard. Current (engineering) projections indicate that the Grantville landfill site will cease operation in 2045. Restoration work is undertaken on an ongoing basis. Council is also obligated to remediate any environmental impacts including rehabilitation and aftercare, after closure of the site. The forecast life of the Grantville landfill site is based on current estimates of remaining capacity and the forecast rate of infill. The provision for landfill restoration has been calculated based on the present value of the expected cost of works to be undertaken. The expected cost of works has been estimated based on current understanding of work required to reinstate the site to a suitable standard and budgeted costs for that work/independent specialist advice. Accordingly, the estimation of the provision required is dependent on the accuracy of the forecast timing of the work, work required and related costs. Bass Coast Shire Council 2012/2013 Financial Report Page 115

Note 26 Reserves

(a) Asset Revaluation Reserves

Land Under Land Other Plant & Total Land Roads Improvements Buildings Structures Equipment Infrastructure Library $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at beginning of reporting period 230,780 87,513 1,775 3,299 40,460 1,391 - 95,931 411 Increment (decrement) 14,663 1,679 1,433 (144) 501 392 - 10,802 - Balance at end of reporting period 245,443 89,192 3,208 3, 155 40, 961 1,783 - 106, 733 411

The Asset Revaluation Reserve represents the difference between the historical money cost of land, buildings, plant and equipment and infrastructure assets, and the revalued figures of each asset which is carried in the statement of financial position.

(b) Other Reserves Resort and Recreation Gravel Pit Reinstatement Non-Standard Street Non-Standard Street Total Other Reserves Car Parking Reserve Drainage Reserve Reserve Reserve Lighting Reserve Lighting Reserve 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

To provide future recreational To provide car parking facilities in To provide money for To provide future drainage works To provide street lighting To provide street lighting services in particular areas where areas where the money was collected rehabilitation works once the where the money was collected where the money was where the money was contributions were made gravel pit is exhausted. collected. collected. The purpose of this reserve:

Balance at beginning of the reporting period 2,251 2,279 1,926 1,963 54 54 129 129 8 8 134 125 - - Transfer from accumulated surplus 238 250 192 241 ------15 9 31 - Transfer to accumulated surplus (814) (278) (755) (278) - - (59) ------Balance at end of the reporting period 1,675 2,251 1,363 1,926 54 54 70 129 8 8 149 134 31 -

(c) Total Reserves Revaluation reserves 245,443 230,780 Other Reserves 1,675 2,251 247,118 233,031 Bass Coast Shire Council 2012/2013 Financial Report Page 116

2012/13 2011/12 $'000 $'000

Note 27 Reconciliation of cash flows from operating activities to surplus (deficit)

Surplus(deficit) for the period 6,573 12,935

Depreciation 11,223 9,604 (Profit)/loss on disposal of property, plant and equipment, infrastructure 60 166 Developer contribution of assets (5,090) (7,075) Unfunded superannuation liability increase - 4,079 Change in assets and liabilities: (Increase)/decrease in trade and other receivables 522 (3,722) (Increase)/decrease in prepayments (86) 192 (Increase)/decrease in other net assets 280 1,055 Increase/(decrease) in trade and other payables (7,449) 2,568 (Increase)/decrease in inventories (4) (8) Increase/(decrease) in provisions 769 653

Net cash provided by/(used in) operating activities 6,798 20,447

Note 28 Reconciliation of cash at year-end to cash and cash equivalents

Cash assets (see note 17) 17,014 24,307 17,014 24,307

Note 29 Financing arrangements

Bank overdraft limit 1,000 1,000 Business purchasing cards 400 400 Unused facilities 1,400 1,400

Bass Coast Shire Council 2012/2013 Financial Report Page 117

Note 30 Superannuation

Council makes employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in the Comprehensive Income Statement when they are due. The Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. The defined contribution section receives fixed contributions from the Council and the Council's legal or constructive obligation is limited to these contributions.

Accumulation The Fund's accumulation category, Vision Super Saver, receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (for the year ending 30 June 2013, this was 9% required under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Defined Benefit Plan

The Fund's Defined Benefit Plan is a multi-employer sponsored plan. As the Fund's assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs between employers. As provided under Paragraph 32(b) of AASB 119, Council does not use defined benefit accounting for these contributions.

Council makes employer contributions to the defined benefits category of the Fund at rates determined by the Fund's Trustee on the advice of the Fund's Actuary. On the basis of the results of the most recent full actuarial investigation conducted by the Fund's actuary as at 31 December 2011, Council makes employer contributions to the Fund's Defined Benefit category at rates determined by the fund's trustee. This rate is currently 9.5% of member's salaries (9.25% in 2011/12).

In addition, Council reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit (the funded resignation or retirement benefit is calculated as the VBI multiplied by the benefit).

Council is also required to make additional contributions to cover the contribution tax payable on the contributions referred to above.

Employees are also required to make member contributions to the Fund. As such, assets accumulate in the Fund to meet member benefits, as defined in the Trust Deed, as they accrue.

Shortfall amounts

The Local Authorities Superannuation Fund's latest actuarial investigation as at 31 December 2011 identified an unfunded liability of $406 million (excluding contributions tax) in the defined benefit category of which, Bass Coast Shire Council is a contributing employer. Council was made aware of the expected shortfall during the 2011/12 year and was informed of its share of the shortfall on 2 August 2012.

Council has not been advised of any further adjustments.

The projected value of Council's contribution to the shortfall at 30 June 2012 (exluding contributions tax) amounted to $3,467,223.16, which was accounted for in the 2012/13 Comprehensive Income Statement (see Note 10) and in the Balance Sheet in Current Liabilities Provisions (see Note 25).

Council received an early payment discount of $157,707.22 and this has been accounted for in the 2012/13 Comprehensive Income Statement within Employee Benefits (see Note 10) and in the Balance Sheet in Current Liabilities Provisions (see Note 25).

The Fund surplus or deficit (ie the difference between fund assets and liabilities) is calculated differently for funding purposes (ie calculating required contributions) and for the calculation of accrued benefits as required in AAS 25 to provide the values needed for the AASB 119 disclosure in the Council's financial statements. AAS 25 requires that the present value of the defined benefit liability be calculated based on benefits that have accrued in respect of membership of the plan up to the measurement date, with no allowance for future benefits that may accrue. Bass Coast Shire Council 2012/2013 Financial Report Page 118

Retrenchment increments During 2012-13, Council was not required to make payments to the Fund in respect of retrenchment increments.

Note 30 Superannuation (cont.)

Accrued benefits

The Fund's liability for accrued benefits was determined in the 31 December 2011 actuarial investigation pursuant to the requirements of Australian Accounting Standard Board AAS 25 follows;

31-Dec-11 $'000

Net Market Value of Assets 4,315,324

Accrued Benefits ( per accounting standards ) 4,642,133

Difference between Assets and Accrued Benefits (326,809)

Vested Benefits 4,838,503 (minimum sum which must be paid to members when they leave the fund)

The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were;

Net Investment Return 7.50% p.a. Salary Inflation 4.25% p.a. Price Inflation 2.75% p.a.

2013 2012 $'000 $'000 Fund Defined benefits fund Employer contributions to Local Authorities Superannuation Fund (Vision Super) 318 285

318 285

Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date 9 4,088

9 4,088

Accumulation funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) 1,645 1,447

1,645 1,447

Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date 61 59

61 59 Bass Coast Shire Council 2012/2013 Financial Report Page 119

Note 31 Commitments

The Council has entered into the following contracts:

Later than Later than 1 yr Not later than Greater than 5 Not later 1 yr and Greater and not later 2012/13 1 yr Years Total 2011/12 than 1 yr not later than 5 Total than 5 yrs $'000 $'000 $'000 than 5 yrs Years $'000 $'000

Operating commitments Operating commitments Management of leisure centres 947 979 - 1, 926 Management of leisure centres 817 1, 613 - 2, 430 Management & operation of resource recovery centres 904 1,544 - 2,448 Management & operation of resource recovery centres 967 1, 979 - 2, 946 Waste recovery centres, recyclables & hard waste 3,960 5,045 - 9,005 Waste recovery centres, recyclables & hard waste 3,313 9, 286 - 12, 599 Operation of Grantville landfill disposal facility 1,069 1,870 - 2,939 Operation of Grantville landfill disposal facility 1,141 2,122 - 3,263 Provision of cleaning for council buildings - - - - Provision of cleaning for council buildings 317 53 - 370 Bass Coast Shire Council public amenities cleaning 498 - - 498 Bass Coast Shire Council public amenities cleaning 408 431 - 839 Provision of valuation services 138 - - 138 Provision of valuation services - - - - Bridge, jetty & boat ramp maintenance 65 - - 65 Bridge, jetty & boat ramp maintenance 6 - - 6 Electricity & associated services for all sites - Electricity & associated services for all sites 106 - - 106 Electricity & associated services for small sites 88 44 - 132 Electricity & associated services for small sites - 35 35 Electricity & associated services for large sites 145 88 - 233 Electricity & associated services for large sites - 158 - 158 Electricity supply to public lighting 303 333 - 636 Electricity supply to public lighting 323 747 - 1, 070 Traffic management - special events 152 - - 152 Traffic management - special events - - - - Affordable housing study - - - - Affordable housing study 30 - - 30 Asset insurance 315 - - 315 Asset insurance - - - - Municipal emergency co-ordination centre (MECC) 17 6 11 34 Municipal emergency co-ordination centre (MECC) 6 6 - 11 Internal audit services 48 50 - 98 Internal audit services 50 51 100 Interim youth services provision - - - - Interim youth services provision 44 - - 44 Microsoft software licencing 220 220 - 440 Microsoft software licencing 165 165 - 330 Roadside grass slashing program - - - - Roadside grass slashing program 81 - - 81 Council election services - compulsory voting enforcement - - - - Council election services - compulsory voting enforcement 209 - - 209 Provision of hand held infringement hardware/software 61 22 83 Provision of hand held infringement hardware/software - - - - San Remo access strategy 4 - - 4 San Remo access strategy - - - - Gippsland digital engagement project 87 - - 87 Gippsland digital engagement project - - - - Boat ramp inspections & routine maintenance 34 - - 34 Boat ramp inspections & routine maintenance - - - - Grave digging - Wonthaggi cemetery 55 330 - 385 Grave digging - Wonthaggi cemetery - - - - Township character study 33 - - 33 Township character study - - - - Public art commission - Coronet Bay 52 - - 52 Public art commission - Coronet Bay - - - - Leadership development program 48 - - 48 Leadership development program - - - - Corporate information system review 61 - - 61 Corporate information system review - - - - Inverloch customer service centre 80 - - 80 Inverloch customer service centre - - - - -

Capital commitments Capital commitments Design - South Dudley Road reconstruction 1 - - 1 Design - South Dudley Road reconstruction 34 - - 34 Stabilisation - South Dudley road (Graham St to Station St.) - - - - Stabilisation - South Dudley road (Graham St to Station St.) 136 - - 136 Construction - roads & drainage South Dudley estate - - - - Construction - roads & drainage South Dudley estate 935 - - 935 Upgrade - road & drainage for Bayview Avenue Tenby Point - - - - Upgrade - road & drainage for Bayview Avenue Tenby Point 163 - - 163 Civic centre master plan (stage 1) 18 - - 18 Civic centre master plan (stage 1) 20 - - 20 Hunter Street Wonthaggi - drainage works (stage 1) - - - - Hunter Street Wonthaggi - drainage works (stage 1) 340 - - 340 Anderson Rd boat ramp - upgrade - - - - Anderson Rd boat ramp - upgrade 111 - - 111 Grantville landfill cell 6 - construction - - - - Grantville landfill cell 6 - construction 835 - - 835 Design & construction - Pinkerton rd bridge - - - - Design & construction - Pinkerton rd bridge 36 - - 36 Construction - Pive Ave & Churchill Dve Cowes - Special charge scheme 933 933 Construction - Pive Ave & Churchill Dve Cowes - Special charge scheme 4,835 - - 4, 835 Cowes Town Square - Landscaping works - - - - Cowes Town Square - Landscaping works 190 - - 190 Automated irrigation system - Wonthaggi Rec. Reserve (No 2 oval) - - - - Automated irrigation system - Wonthaggi Rec. Reserve (No 2 oval) 21 - - 21 Landscaping - Phillip Island Early Learning Centre 11 - - 11 Landscaping - Phillip Island Early Learning Centre - - - - Construction - Wonthaggi civic centre building - 4 33 - - 33 Construction - Wonthaggi civic centre building - 4 - - - - Rehabilitation- Coghlan road & Smiths Beach road 28 - - 28 Rehabilitation- Coghlan road & Smiths Beach road - - - - Inverloch rd (Bass Hwy) Wonthaggi - Roadworks - stage 1 402 - - 402 Inverloch rd (Bass Hwy) Wonthaggi - Roadworks - stage 1 - - - - Wonthaggi North kindergarten - extension 609 - - 609 Wonthaggi North kindergarten - extension ------

Total 11,419 10,531 11 21,961 Total 15,637 16,645 0 32,283 Bass Coast Shire Council 2012/2013 Financial Report Page 120

2012/13 2011/12 $'000 $'000 Note 32 Operating lease commitments

At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use within Council's activities (these obligations are not recognised as liabilities). Not later than one year 640 298 Later than one year and not later than five years 1,194 340 Later than five years 2,428 58 4,262 696 Items Leased Property Leased Address Term of Lease

1 State Emergency Service depot * 23 Bear Street, Inverloch 5 years to June 2012 2 State Emergency Service depot * 319 White Road Wonthaggi 5 years to August 2012 3 State Emergency Service depot 1 Back Beach Road San Remo 40 years to March 2030 4 Wonthaggi depot * 7-9 Loughran Drive, Wonthaggi 5 years to February 2017 5 Wonthaggi depot 2 Loughran Drive, Wonthaggi 10 years to March 2022 6 Country Fire Authority water tank Berrys Road, Harmers Haven 5 years to December 2016 7 Mobile library storage 46 Inverloch Road, Wonthaggi 5 years to June 2015 8 Office photocopiers Various office locations 3 years to 5 years 2015 9 Computer Hardware Wonthaggi Civic Centre 3 years to August 2015 10 Communications Hardware Wonthaggi Civic Centre 3 years to March 2016 11 Motor vehicles Landcare, Council fleet 1 year to 3 years 2015 12 Vermeer wood chippers (2) Wonthaggi depot 3 years to May 2016 13 Street sweeper Wonthaggi depot 5 years to August 2014 14 Land (radio tower) McDowell Road Woolamai 5 years to July 2016 15 Wonthaggi Genealogy 48 McBride Avenue Wonthaggi 5 years to January 2019 16 Rhyll Landfill 309 Cowes Rhyll Road Rhyll 12 years to July 2023 17 Wonthaggi Library 23-27 Murray Street Wonthaggi 13 years to 2026 * Council currently renegotiating lease extension

Note 33 Contingencies

The Council is presently involved in several confidential legal matters, which are being conducted through Council's solicitors.

As these matters are yet to be finalised, and the financial outcomes are unable to be reliably estimated, no allowance for these contingencies has been made in the financial report.

Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional contributions to the scheme to ensure that the liabilities of the fund are covered by the assets of the fund. As a result of the increased volatility in financial markets the likelihood of making such contributions in future periods has increased. At this point in time it is not known if additional contributions will be required, their timing or potential amount.

2012/13 2011/12 $'000 $'000 Guarantees for loans to other entities Phillip Island Football Club 47 47 Department of Natural resources 5 5 Phillip Island Nature Park 350 350 Environmental Protection Agency 240 240

Contingent assets Developer contributions to be received in respect of estates currently under development total: $6,144,382 (2011/12 $9,818,441) Bass Coast Shire Council 2012/2013 Financial Report Page 121

Note 34 Financial instruments (a) Accounting Policy, Terms and Conditions

Recognised Financial Note Accounting Policy Terms and Conditions Instruments Financial Assets Cash and cash 17 Cash on hand and at bank and money market call On call deposits returned a floating interest rate of 3.87% equivalents account are valued at face value. (4.95% in 2011/12). The interest rate at balance date was Interest is recognised as it accrues. 3.21% (3.62% in 2011/12). Investments and Bills are valued at cost. Investments are held to maximise interest returns Funds returned fixed interest rate of between 2.00% (3.62% in of surplus cash. 2011/12), and 5.03% (5.90% in 2011/12) net of fees. Interest revenues are recognised as they accrue. Managed funds are measured at market value.

Trade and other receivables 18 Receivables are carried at nominal amounts due General debtors are unsecured and arrears are interest free. less any provision for doubtful debts. A provision Credit terms are based on 30 days. for doubtful debts is recognised when collection in full is no longer probable. Collectability of overdue accounts is assessed on an ongoing basis.

Financial Liabilities Trade and other payables 22 Liabilities are recognised for amounts to be paid in General creditors are unsecured, not subject to interest the future for goods and services provided to charges and are normally settled within 30 days of invoice Council as at balance date whether or not invoices receipt. have been received.

Interest-bearing loans and borrowings 24 Loans are carried at their principal amounts, which Borrowings are secured by way of mortgages over the general represent the present value of future cash flows rates of the Council. associated with servicing the debt. Interest is accrued over the period it becomes due and The weighted average on borrowings is 6.71% during 2012/13 recognised as part of payables. (6.70% in 2011/12).

Bank overdraft 29 Overdrafts are recognised at the principal amount. The overdraft is subject to annual review. Interest is charged as an expense as it accrues. It is secured by mortgages over Council's general rates and is repayable on demand. Interest rates on utilised overdraft were 8.22% (8.87% in 2011/12). The interest rate as at balance date was 8.22% (8.87% in 2011/12). Bass Coast Shire Council 2012/2013 Financial Report Page 122

Note 34 Financial instruments (continued)

(b) Interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk.

Our loan borrowings are sourced from major Australian banks by a tender process. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our net debt portfolio by: - ensuring access to diverse sources of funding - reducing risks of refinancing by managing in accordance with target maturity profiles; and - setting prudential limits on interest repayments as a percentage of rate revenue.

We manage the interest rate exposure on our net debt portfolio by appropriate budgeting strategies and obtaining approval for borrowings from the Australian Loan Council each year.

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. We manage interest rate risk by adopting an investment policy that ensures: - conformity with State and federal regulations and standards, - adequate safety, - appropriate liquidity, - diversification by credit rating, financial institution and investment product, - monitoring of return on investment, - benchmarking of returns and comparison with budget,

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk. The exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date are as follows: 2012/13 Fixed interest maturing in: Floating More than 5 Non-interest interest rate 1 year or less Over 1 to 5 years years bearing Total $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 834 16,175 5 17,014 Trade and other receivables 2,296 4,795 7,091 Total financial assets 3,130 16,175 - - 4,800 24,105

Weighted average interest rate 3.87%

Financial liabilities Trade and other payables - 3,390 - - 0 3,390 Trust funds and deposits - - - - 1,976 1,976 Interest bearing loans and borrowings - 1,134 4,070 2,563 - 7,767 Total financial liabilities - 4,524 4,070 2,563 1,976 13,133

Weighted average interest rate 6.71%

Net financial assets (liabilities) 3,130 11,651 (4,070) (2,563) 2,824 10,972 Bass Coast Shire Council 2012/2013 Financial Report Page 123

Note 34 Financial instruments (continued)

2011/12 Fixed interest maturing in: Floating More than 5 Non-interest interest rate 1 year or less Over 1 to 5 years years bearing Total $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 1,226 23,076 - - 5 24,307 Trade and other receivables 3,605 - - - 3,993 7,598 Total financial assets 4,831 23,076 - - 3,998 31,905

Weighted average interest rate 4.95%

Financial liabilities Trade and other payables - 6,760 4,079 - - 10,839 Trust funds and deposits - - - - 2,188 2,188 Interest bearing loans and borrowings - 1,049 3,886 2,881 - 7,816 Total financial liabilities - 7,809 7,965 2,881 2,188 20,843

Weighted average interest rate 6.70%

Net financial assets (liabilities) 4,831 15,267 (7,965) (2,881) 1,810 11,062

The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:

Total carrying amount as per Balance Sheet Aggregate net fair value

2012/13 2011/12 2012/13 2011/12 (1) Financial instruments Cash and cash equivalents 17,014 24,307 17,014 24,307 Trade and other receivables 7,091 7,598 7,091 7,598 Total financial assets 24,105 31,905 24,105 31,905 (2) Financial liabilities Payables 3,390 10,839 3,390 10,839 Trust funds and deposits 1,976 2,188 1,976 2,188 Interest-bearing loans and borrowings 7,767 7,816 7,767 7,816 Total financial liabilities 13,133 20,843 13,133 20,843

(d) Credit risk The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Balance Sheet. Bass Coast Shire Council 2012/2013 Financial Report Page 124

Note 34 Financial instruments (continued) (e) Risks and mitigation The risks associated with our main financial instruments and our policies for minimising these risks are detailed below.

Market risk Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices.

The Council's exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below.

Interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument of cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assts. Our interest rate liability risk arises from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk.

Our loan borrowings are sourced from major Australian banks by a tender process. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our net debt portfolio by; - ensuring access to diverse sources of funding - reducing risks of refinancing by managing in accordance with target maturity profiles; and - setting prudential limits on interest repayments as a percentage of rate revenue.

We manage the interest rate exposure on our debt portfolio by appropriate budgeting strategies and obtaining approval for borrowings from the Department of Planning and Community Development each year.

Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us to make a financial loss. We have exposure to credit risk on all financial assets included in our balance sheet. To help manage this risk: - we have a policy for establishing credit limits for the entities we deal with, - we may require collateral where appropriate; and - we only invest surplus funds with financial institutions which have a recognised credit rating specified in our investment policy.

Trade and other receivables consist of a large number of customers, spread across the consumer, business and government sectors. Credit risk associated with the Council's financial assets is minimal because the main debtor is the Victorian Government. Apart from the Victorian Government we do not have significant credit risk exposure to a single customer or group of customers. Ongoing credit evaluation is performed on the financial condition of our customers and, where appropriate, an allowance for doubtful debts is raised.

We may also be subject to credit risk for transactions which are not included in the balance sheet, such as when we provide a guarantee for another party. Details of our contingent liabilities are disclosed in note 33. Bass Coast Shire Council 2012/2013 Financial Report Page 125

Note 34 Financial instruments (continued)

Movement in provisions for doubtful debts

$'000 2013

Balance at the beginning of the year 1 New provisions recognised during the year - Amounts already provided for and written off as uncollectable - Amounts provided for but recovered during the year - Previous impairment losses reversed -

Balance at the end of the year 1

2012 $'000

Balance at the end of the year 1

Liquidity risk Liquidity risk includes the risk that, as a result of our operational liquidity requirements: - we will not have sufficient funds to settle a transaction on the date; - we will be forced to sell financial assets at a value which is less than what they are worth; or - we may be unable to settle or recover a financial asset at all.

To help reduce these risks we: - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; - have readily accessible standby facilities and other funding arrangements in place; - have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid instruments; - monitor budget to actual performance on a regular basis; and - set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue.

The Council's exposure to liquidity risk is deemed insignificant based on prior periods' data and current assessment of risk.

The table below lists the contractual maturities for Council's Financial Liabilities These amounts represent undiscounted gross payments including both principal and interest amounts.

2013 6 months or less 6-12 months 1-2 years 2-5 years > 5 years Carrying amount

Trade and other payables 3,390 - - - - 3,390 Trust funds and deposits 1,976 - - - - 1,976 Interest-bearing loans and borrowings 828 828 2,865 3,524 1,914 9,959 6,194 828 2,865 3,524 1,914 15,325

2012 6 months or less 6-12 months 1-2 years 2-5 years > 5 years Carrying amount

Trade and other payables 5,921 - 4,079.00 839 - 10,839 Trust funds and deposits 2,188 - - - - 2,188 Interest-bearing loans and borrowings 797 797 1,526 3,818 3,316 10,254 8,906 797 5,605 4,657 3,316 23,281 Bass Coast Shire Council 2012/2013 Financial Report Page 126

Note 34 Financial instruments (continued)

(f) Sensitivity disclosure analysis

Taking into account past performance, future expectations, economic forecasts and management's knowledge and experience of the financial markets, the Council believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)

- A parallel shift of +1% and -2% in market interest rates (AUD) from year-end rates of 4.4%.

The table below discloses the impact on net operating result and equity for each category of financial instruments held by the Council at year-end, if the above movements were to occur.

- 2% + 1% (200 basis points) (100 basis points) carrying amount subject to interest Profit Equity Profit Equity

2013 $'000 $'000 $'000 $'000 $'000

Financial assets: Cash and cash equivalents 17,014 (340) (340) 170 170 Trade and other receivables 7,091 (142) (142) 71 71 Financial liabilities: Interest bearing loans & borrowings 7,767 (155) (155) 78 78

- 2% + 1% (200 basis points) (100 basis points)

carrying amount subject to interest Profit Equity Profit Equity

2012 $'000 $'000 $'000 $'000 $'000

Financial assets: Cash and cash equivalents 24,307 (486) (486) 243 243 Trade and other receivables 7,598 (174) (174) 87 87 Financial liabilities: Interest bearing loans & borrowings 7,816 (156) (156) 78 78

2012/13 2011/12 Note 35 Auditors' remuneration $'000 $'000

Audit fee to conduct external audit - Victorian Auditor-General 60 58 Internal audit fees 45 60 105 118

Note 36 Events occurring after balance date

There have been no items or events of material or unusual nature which have occurred since 30 June 2013, which have not been disclosed. Bass Coast Shire Council 2012/2013 Financial Report Page 127

Note 37 Related party transactions

Names of persons holding the position of a Responsible Person at the Bass Coast Shire Council during the reporting year are: (i) Councillors John Duscher - 1 July 2012 to 26 October 2012 Jane Dore Daly - 1 July 2012 to 26 October 2012 Gareth Barlow - 1 July 2012 to 26 October 2012 Ross Smith - 1 July 2012 to 26 October 2012 Phillip Wright - 1 July 2012 to 30 June 2013 Veronica Dowman - 1 July 2012 to 26 October 2012 Peter Paul - 1 July 2012 to 26 October 2012 Clare Le Serve - 31 October 2012 - 30 June 2013 Neil Rankine - 31 October 2012 - 30 June 2013 Bradley Drew - 31 October 2012 - 30 June 2013 Kimberley Brown - 31 October 2012 - 30 June 2013 Andrew Phillips - 31 October 2012 - 30 June 2013 Jordan Crugnale - 31 October 2012 - 30 June 2013

Mayor Veronica Dowman - 1 July 2012 - 26 October 2012 Clare Le Serve - 31 October 2012 - 30 June 2013

Chief Executive Officer Allan Bawden

(ii) Remuneration of responsible persons 2012/13 2011/12 No. No.

Remuneration of Responsible Persons were within the following bands: $1 - $9,999 5 - $10,000 - $19,999 3 - $20,000 - $29,999 4 6 $30,000 - $39,999 - - $40,000 - $49,999 - - $50,000 - $59,999 1 - $60,000 - $69,999 - - $70,000 - $79,999 - 1 $250,000 - $259,999 - 1 $270,000 - $279,999 1 14 8

$'000 $'000 Total remuneration for the reporting year for Responsible Persons included above amounted to 507 503

(iii) No retirement benefits have been made by the Council to a Responsible Person during the reporting year (2011/12, nil).

(iv) No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting year (2011/12, nil).

(v) Other transactions No transactions other than remuneration payments or the reimbursement of approved expenses were entered into by Council with Responsible Persons, or Related Parties of such Responsible Persons during the reporting year (2012/13)

Council is a stakeholder of the West Gippsland Regional Library Corporation and as such, has made contributions to this organisation during 2012/13 totalling: $1,108,169.

(vi) Senior officers remuneration

A senior officer other than a Responsible Person, is an officer of Council who has management responsibilities and reports directly to the Chief Executive Officer or whose total annual remuneration exceeds $130,000 (2011/12 $127,000).

The number of senior officers, other than the Responsible Persons, are shown below in their relevant income bands:

2012/13 2011/12 No. No. Income range: $130,000 - $139,999 - 3 $140,000 - $149,999 2 - $150,000 - $159,999 - - $160,000 - $169,999 1 1 $170,000 - $179,999 - 1 $180,000 - $189,999 2 1 $190,000 - $199,999 1 1 6 7

$'000 $'000

Total remuneration for the reporting year for senior officers included above, amounted to 1,009 1,121 Bass Coast Shire Council 2012/2013 Financial Report Page 128

Note 38 Income, expenses and assets by function/activities

(a) Tourism & Leisure & Community Corporate Environmental Infrastructure Economic Total Recreation Services Services Services Services Development Services Services 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 INCOME 446 575 40,425 37,172 3,968 3,575 1,565 2,123 621 58 1,143 1,226 48,168 44,729

Grants 3,069 3,008 5,404 7,082 49 50 4,447 3,063 273 382 - 616 13,242 14,201

Other 50 49 61 60 597 517 5,289 13,525 - - - - 5,997 14,151

Total 3,565 3,632 45,890 44,314 4,614 4,142 11,301 18,711 894 440 1,143 1,842 67,407 73,081

Expenses 6,528 6,249 9,799 12,841 13,368 12,854 17,115 15,416 8,708 8,047 5,261 4,897 60,779 60,304

Surplus/(deficit) (2,963) (2,617) 36, 091 31, 473 (8,754) (8,712) (5,814) 3,295 (7,814) (7,607) ( 4,118) ( 3,055) 6,628 12,777 for the year

Assets attributed to 36,934 37,691 16,486 15,785 81,769 75,089 247,564 242,608 81,751 79,635 22,120 21,861 486,624 472,669 functions/activities*

Assets have been attributed to functions/activities based on the control and/or custodianship of specific assets. Bass Coast Shire Council 2012/2013 Financial Report Page 129

Note 38 Revenues, expenses and assets by function/activity (continued)

(b) The activities/services of the municipality are categorised into the following broad programs:

Community Services Relates to the provision of services to family and children's services, - maternal & child health services, aged and disability services - home and community care services, planning and development - community services and other community support services.

Corporate Services Corporate administration and planning, human resources management, information technology / telecommunications, best value, customer services, governance, council support, community relations, records management, secretarial/administrative support, finance - statutory reporting, management reporting, budgeting and general accounting, revenue control and collection, and property information systems.

Environmental Services

Waste management / collection, disposal and recycling, catchment and land management in partnership with landcare, environmental planning - implementation of environment management strategies and plans, strategic land use and planning services, emergency management and fire protection services, management of foreshore reserves and coastal facilities, environmental health including education and prevention programs, regulatory services - enforcement and education of local laws, and other relevant legislation.

Infrastructure Services

Asset management roads and infrastructure - construction and maintenance, car parking facilities, cemeteries, drainage network - maintenance and improvement of the Shire's drainage system, plant - management of plant & equipment, public amenities, public lighting, road network - ensuring the provision, maintenance and upgrading of the Shire's roads and streets.

Leisure & Recreational Services Cultural and heritage services, leisure facilities and activities, libraries, parks and gardens and open space, recreational reserves - maintaining the use of outdoor facilities for competition sports and active and passive recreation participation, community information, and community centres.

Tourism and Economic Development Services

Development approvals - statutory building and planning approvals for the development of land and buildings, visitor information services, employment initiatives, marketing and promotional activities, strategy and research - research and data collection to undertake strategic planning and marketing activities, major events - facilitation of tourism product development programs in partnership with regional and local tourism associations. Bass Coast Shire Council 2012/2013 Financial Report Page 130

Note 39 Financial ratios (performance indicators) 2013 2013 2012 2012 2011 2011 2010 2010 $'000 (% / ratio) $'000 (% / ratio) $'000 (% / ratio) $'000 (% / ratio)

(a) Debt servicing ratio (to identify the capacity of Council to service its outstanding debt)

Debt servicing costs 539 = 0.80% 547 = 0.75% 453 = 0.71% 341 = 0.60% Total revenue 67,334 72,650 64,230 57,125

Debt servicing costs refer to the payment of interest on loan borrowings, finance lease interest and bank overdraft. The ratio expresses the amount of interest paid as a percentage of Council's total revenue.

(b) Debt commitment ratio (to identify Council's debt redemption strategy)

Debt servicing & redemption costs 1,588 = 3.93% 1,527 = 4.07% 1,269 = 3.67% 1,115 = 3.83% Rate revenue 40,384 37,506 34,569 29,132

The strategy involves the payment of loan principal and interest, finance lease principal and interest. The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.

Rate revenue 40,384 = 59.96% 37,506 = 51.63% 34,569 = 53.82% 29,132 = 51.00% Total revenue 67,347 72,650 64,230 57,125

The level of Council's reliance on rate revenue is determined by assessing rate revenue as a proportion of the total revenue of Council. Bass Coast Shire Council 2012/2013 Financial Report Page 131

Note 39 Financial ratios (continued) 2013 2013 2012 2012 2011 2011 2010 2010 $'000 (% / ratio) $'000 (% / ratio) $'000 (% / ratio) $'000 (% / ratio)

(d) Debt Exposure Ratio (to identify Council's exposure to debt)

Total indebtedness 20,405 8.68% 28,446 11.75% 19,536 8.65% 15,586 = 7.70% Total realisable assets 235,051 242,120 225,835 202,341

For the purposes of the calculation of financial ratios, realisable assets are those assets which can be sold and which are not subject to any restriction on realisation or use.

The following assets are excluded from total assets when calculating Council's realisable assets: land - other controlled; buildings on other controlled land; restricted assets; heritage assets; roads and lanes; footpaths; kerb & channel; drains; bridges; and Council's investment in long service leave and associate.

This ratio enables assessment of Council's solvency and exposure to debt. Total indebtedness refers to the total liabilities of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject to any restriction and are able to be realised. The ratio expresses the multiple of realisable assets for each dollar of total liabilities.

(e) Working Capital Ratio (to assess Council's ability to meet current commitments)

Current assets 22,836 = 1.79 : 1 31,148 = 1.98 : 1 27,200 = 2.44 : 1 21,301 = 2.11 : 1 Current liabilities 12,739 15,714 11,146 10,074

The ratio expresses the level of current assets the Council has available to meet its current liabilities.

(f) Adjusted Working Capital Ratio (to assess Council's ability to meet current commitments) 22,836 = 2.50 : 1 31,148 = 2.31 : 1 27,200 = 3.31 : 1 21,301 = 2.82 : 1 9,124 13,482 8,221 7,565 The ratio expresses the level of current assets the Council has available to meet its current liabilities.

Current liabilities have been reduced to reflect the long service leave that is shown as a current liability because Council does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date, but is not likely to fall due within 12 months after the end of the period. Bass Coost Shire Council 20I212013 Rnancial Repon Page 132

Certification of the Financial Report

In my opinion the accompanying financial statements have been prepared in accordance with the Local Government Act 1989, the Local Government (Finance & ·Reporting) Regulations 2004, Australian Accounting Standards and other mandatory professional reporting requirements.

Danny Luna PRINCIPAL ACCOUNTING OFFICER

Date: 18 September 20 13 Wonthaggi

In our opinion, the accompanying financial report presents fairly the financia l transactions of Bass Coast Shire Council for the year ended 30 June 2013 and the financial position of the Council as at that date.

A s at the date of signing, we are not aware of any circumstances which would render any particulars in the financial report to be misleading or inaccurate.

On 18 September 20 I 3 we were authorised by the Council to certify the financial report in its final form on behalf of the Council.

Cr. Clare Le Serve COUNCILLOR

Date: 18 September 20 I 3 Wonthaggi

Cr. Neil Rankine COUNCILLOR

Date: 18 September 2013 Wonthaggi

Date: 18 September 2013 Wonthaggi Bass Coast Shire Council 2012/2013 Financial Report Page 133

BASS COAST SHIRE COUNCIL Standard Income Statement for the year ending 30th June 2013

Budget Actual 2012/2013 2012/2013 Variance Variance Ref: $'000 $'000 $'000 %

Revenue from operating activities

General rates & garbage charges 40,107 40,384 277 0.7% Government operating grants & subsidies 8,701 8,443 (258) -3.0% Government capital grants & subsidies 6,070 4,799 (1,271) -20.9% 1 Government contributions & reimbursements 559 1,188 629 112.5% 2 Other contributions & reimbursements 3,664 6,196 2,532 69.1% 3 Statutory fees & charges 1,745 1,641 (104) -6.0% User fees & charges 3,491 3,266 (225) -6.4% Interest 1,080 812 (268) -24.8% 4 Other (incl rent) 609 559 (50) -8.2% Net gain on disposal of assets - (60) (60) 5

Total revenues: 66,026 67,228 1,202

Expenses from ordinary activities

Employee related costs 24,878 24,248 (630) -2.5% Materials, services & supplies (includes program operating, plant/fleet operating & hire, maintenance & repair of assets, contract payments etc.) 26,705 24,344 (2,361) -8.8% Borrowing costs 576 539 (37) -6.4% Depreciation & amortisation 10,290 11,223 933 9.1% Bad & doubtful debts - 21 21 6 Assets written off - 399 399 7

Total expenses: 62,449 60,774 (1,675)

Revenues from outside ordinary activities:

Share of net profits of associates - 119 119 8

Net result for the reporting period: 3,577 6,573 2,996

Movements in equity

Net increase (decrease) in asset revaluation reserves - 14,663 -

- 14,663 -

Total changes in equity: 3,577 21,236 2,996 Bass Coast Shire Council 2012/2013 Financial Report Page 134

BASS COAST SHIRE COUNCIL Standard Income Statement Variance Explanation Report

Ref: Item Explanation $'000

1 Government operating grants Major favourable variations to original budgets include: & subsidies - Country Roads & Bridges Initiative (CRBI) funding 1,000 - Waste management & recycling program 250 - Blackspot - roundabout at Justice and Settlement roads 205 - Country Football/Netball program - upgrade facilities 126 - Wonthaggi recreation reserve oval - irrigation/drainage upgrade 26 1,607 Major unfavourable variations to original budgets include: - Nation building' blackspot program - Loch-Kernot road (21) - Mobile skate park (49) - Anderson Road boat ramp (150) - Wonthaggi CBD traffic management improvements (250) - Local Roads to market & Roads to Recovery programs (LRMP & RTR) (441) - Bicycle paths & pathways network funding (730) - South Dudley Road, Wonthaggi (Station St to Secondary College) (1,200) (2,841)

Net revenue over (under) budget (1,234) Government contributions & 2 Major favourable variations to original budgets include: reimbursements - Desalination haulage roads - repairs 598 - Fire Services levy administration costs reimbursement from State Revenue Office 37 635

Major unfavourable variations to original budgets include: - Valuation fees recovered (27) (27)

Net revenue over (under) budget 608 3 Other contributions & Major favourable variations include: reimbursements - Developer asset contributions including roads & drains (not budgeted for) 5,090 - Developer cash contributions 99 - Bass recreation reserve - drainage works 95 - Land & catchment works - Landcare reimbursement 72 - Native vegetation offset program (NVOS) 31 - Community safety programs 27

Net revenue over (under) budget 5,414 Bass Coast Shire Council 2012/2013 Financial Report Page 135

BASS COAST SHIRE COUNCIL Standard Income Statement Variance Explanation Report

Ref: Item Explanation $'000

Major unfavourable variations include: - Special charge scheme - Ramsay Boulevard, Inverloch (abandoned) (108) - Special charge scheme - Surf parade, Inverloch (abandoned) (127) - Special charge scheme - Bass Hwy, Graham St, McKenzie St Wonthaggi (779) - Desalination road works - contributions (carried over to 2013/14) (1,888) (2,902)

Net revenue over (under) budget 2,512

4 Interest The major reason for this variation relates to a change in disclosure of interest on rates & charges;

The original budget of $230,000 for interest on rates & charges was included and disclosed in the interest - (230) income line item. - This item is now disclosed in the 'General rates & charges' line-item. - Actual interest on rates & charges received during 2012/13 was $267,000

Net revenue over (under) budget (230) 5 Net gain on disposal of assets This item was not budgeted for. - Proceeds from sale of assets 480 - Written down value of assets sold (540)

Net revenue over (under) budget (60) 6 Bad & doubtful debts This item was not budgeted for. Net expenditure over (under) budget (21) 7 Assets written off This item was not budgeted for and comprised road assets written off due to replacement etc., including $55,500 written off on account of the abandonment of two Special Charge Schemes. Net expenditure over (under) budget (339)

8 Share of net losses of This represents an increase in Council's equity in the West Gippsland Regional Library Corporation which was associates not budgeted for. Net expenditure over (under) budget 119 Bass Coast Shire Council 2012/2013 Financial Report Page 136

BASS COAST SHIRE COUNCIL Standard Balance Sheet for the year ending 30th June 2013

Budget Actual 2012/13 2012/13 Variance Variance Ref: $'000 $'000 $'000 %

Current Assets

Cash assets 9,332 17,014 7,682 82.3% 9 Receivables 4,949 5,359 410 8.3% Prepayments 577 428 (149) -25.8% 10 Inventories 24 34 10 41.7% 11

Total current assets: 14,882 22,835 7,953 53.4%

Non-Current Assets

Receivables 492 1,732 1,240 252.0% 12 Investment in associates 884 572 (312) -35.3% 13 Long term investments 40 40 0 0.0% Property, infrastructure, plant & equipment 465,040 486,624 21,584 4.6%

Total non-current assets: 466,456 488,968 22,512 4.8%

TOTAL ASSETS: 481,338 511,803 30,465 6.3%

Current Liabilities

Payables 4,052 3,390 (662) -16.3% 14 Trust funds 2,168 1,976 (192) -8.9% Provisions 6,319 6,239 (80) -1.3% 15 Interest bearing liabilities 1,046 1,134 88 8.4%

Total current liabilities: 13,585 12,739 (846) -6.2%

Non-Current Liabilities

Provisions 922 1,033 111 12.0% 15 Interest bearing liabilities 6,738 6,633 (105) -1.6%

Total non-current liabilities: 7,660 7,666 6 0.1%

TOTAL LIABILITIES: 21,245 20,405 (840) -4.0%

NET ASSETS: 460,093 491,398 31,305 6.8%

EQUITY

Accumulated surplus 224,688 244,280 19,592 8.7% Asset revaluation reserve 233,714 245,443 11,729 5.0% Other reserves 1,691 1,675 (16) -0.9%

TOTAL EQUITY: 460,093 491,398 31,305 6.8% Bass Coast Shire Council 2012/2013 Financial Report Page 137

BASS COAST SHIRE COUNCIL Standard Balance Sheet Variance Explanation Report

Ref: Item Explanation

9 Cash assets The 12/13 budget was prepared well in advance of the close of the 2011/12 year - the estimated opening balance as a t 1/7/2012, based on forecast cash flows for 2011/12 was underestimated by approximately $7,943,000. The impact of this variation has flowed into the 2012/13 budget variance. The remainder variance of $261,000 is made up of; - net cash inflow from operating activities under budget by ($8,964,000)

- net cash outflow from investing activities under budget by $8,926,000

- net cash outflow from financing activities over budget by ($223,000) The major influence for the existence of surplus funds over budget across these two financial years relates to net capital expenditure which is underspent and carried forward to the following years. Further detail on cash movements are available in the Cash Flow Statement. 10 Prepayments The estimated opening balance as at 1/7/2012, based on forecast cash flows for 2011/12, was overestimated by $208,000. The impact of this variation has flowed into the 2012/13 budget variance and is the major reason for the reported variance. 11 Inventories The estimated opening balance as at 1/7/2012, based on forecast cash flows for 2011/12, was underestimated by $7,000. The impact of this variation has flowed into the 2012/13 budget variance and is the major reason for the reported variance.

12 Receivables (non-current assets) The estimated opening balance as at 1/7/2012, based on forecast cash flows for 2011/12, was underestimated by $1,396,000. The impact of this variation has flowed into the 2012/13 budget variance and is the major reason for the reported variance.This variance relates to the growth of non-current debt as a result of new Special Charge Schemes for road construction. It reflects a larger proportion of scheme debt repaid over time ( 4 or 5 year period ). In particular, a large scheme (Pine/Churchill area) was declared late in 2011/12 which was not actually budgeted for that year.

13 Investment in associates The estimated opening balance as at 1/7/2012, based on forecast cash flows for 2011/12, was overestimated by $431,000. The impact of this variation has flowed into the 2012/13 budget variance and is the major reason for the reported variance.

The remainder relates to an increase in the investment for the 2012/13 year ($119,000). 14 Payables The estimated opening balance as at 1/7/2012, based on forecast cash flows for 2011/12, was overestimated by $544,000. The impact of this variation has flowed into the 2012/13 budget variance.

15 Provisions (current & non-current) Provisions (current & non-current) total $7,272,000 and comprise: - provision for annual leave $2,624,000 - long service leave $4,078,000 and - provision for landfill land restoration (EPA financial assurance guarantee) $570,000

The total variation of $31,000 over budget relates to both the provision for annual leave and the provision for long service leave. The net variation of these liabilities, both current & non-current represents a budget variation of only 0.4%. Bass Coast Shire Council 2012/2013 Financial Report Page 138

BASS COAST SHIRE COUNCIL Standard Cash Flows Statement for the year ending 30th June 2013

Budget Actual 2012/13 2012/13 Variance Variance Ref: $'000 $'000 $'000 %

Cash flows from operating activities

Receipts from customers (inclusive of GST) 50,679 48,048 (2,631) -5.2% Payments to suppliers (inclusive of GST) (51,328) (58,638) (7,310) 14.2% 16

Net cash inflow (outflow) from customers/suppliers (649) (10,590) (9,941) 1531.7%

Interest received 1,080 804 (276) -25.6% 17 Government receipts (inclusive of GST) 15,330 16,584 1,254 8.2%

Net cash inflow (outflow) from operating activities 15,761 6,798 (8,963) -56.9%

Cash flows from investing activities

Payments for property, plant and equipment (inclusive of GST) (25,485) (14,295) 11,190 -43.9% 18 Proceeds from sale of property, plant and equipment (inclusive of GST) 2,730 464 (2,266) -83.0% 19

Net cash inflow (outflow) from investing activities (22,755) (13,831) 8,924 -39.2%

Cash flows from financing activities

Proceeds from borrowings 1,000 1,000 - 0.0% Repayment of borrowings (1,038) (1,049) (11) 1.1% Trust funds and deposits - (212) - 212

Net cash inflow (outflow) from financing activities (38) (261) (223) 586.8%

Net increase (decrease) in cash held (7,032) (7,293) (261) 3.7% Cash at the beginning of the year 16,364 24,307 7,943 48.5% 20

Cash at the end of the year 9,332 17,014 7,682 82.3%

Reconciliation of Operating Result and Net Cash Flows from Operating Activities for the year ending 30 June 2013

Net surplus (deficit) from operations 3,577 6,573 2,996 Depreciation and amortisation 10,290 11,223 933 Non cash developer contributions - (5,090) (5,090) (Profit) loss on sale of property, plant and equipment - 76 76 Assets written off - 399 399 Unfunded superannuation contribution - (4,079) (4,079) Share of net profits of associates - (119) (119) Non-current employee benefits provision - 769 769 Net movement in current assets and liabilities 1,894 (2,954) (4,848)

Net cash inflow (outflow) from operating activities 15,761 6,798 (8,963) Bass Coast Shire Council 2012/2013 Financial Report Page 139

BASS COAST SHIRE COUNCIL Standard Cash Flows Statement Variance Explanation Report

Ref: Item Explanation

16 Payments to suppliers The major influence on this variance has resulted from the payment of the unfunded superannuation liability which was accrued in 2011/12 ($4,079,000). Council made an early payment of this liability ($3,921,000) resulted in an early payment discount of $158,000

17 Interest received The major reason for this variation relates to a change in disclosure of interest on rates & charges. The original budget of $230,000 for interest on rates & charges was included and disclosed in the interest income line item. This item is now disclosed in the 'General rates & charges' line-item. Actual interest on rates & charges received during 2012/13 was $267,000.

18 Payments for property, plant & equipment Refer to the Statement of Capital Works & associated variance explanation reports for details.

19 Proceeds from sale of property, plant & The variance relates to budgeted property sales which did not eventuate during the year (to be carried over to the 2013/14 budget equipment year). 20 Cash at the beginning of the year The major influence for the existence of surplus funds over budget at the close of the 2011/12 financial year relates to net capital expenditure which was underspent and carried forward to the 2012/13 year. Bass Coast Shire Council 2012/2013 Financial Report Page 140

BASS COAST SHIRE COUNCIL Standard Statement of Capital Works for the year ending 30th June 2013

Budget Actual 2012/13 2012/13 Variance Variance Ref: $'000 $'000 $'000 %

Capital works areas

Roads 16,025 8,107 (7,918) -49.4% 21 Drains 1,318 1,407 89 6.8% Open space 754 3,458 2,704 358.6% 22 Buildings 2,559 1,120 (1,439) -56.2% 23 Plant & equipment 1,691 1,499 (192) -11.4% 24 Other 3,138 1,042 (2,096) -66.8% 25

Total capital works: 25,485 16,633 (8,852) -34.7%

Represented by:

Renewal 7,410 4,088 (3,322) -44.8% Upgrade 9,660 6,029 (3,631) -37.6% Expansion 8,415 4,703 (3,712) -44.1% New assets (includes works previously categorised within 'expansion') - 1,813 1,813

Total capital works: 25,485 16,633 (8,852) -34.7%

Property, infrastructure, plant & equipment movement Reconciliation worksheet

The movement between the previous year and the current year in property, infrastructure, plant & equipment as shown in the Statement of Financial Position links to the net of the following items;

Total capital works 16,633 Expenditure on land assets purchased under contrct recognised in 2011/12 (2,339) Asset revaluation movement 14,663 Depreciation and amortisation (11,223) Written down value of assets sold (540) Developer contributions 5,090 Assets written off (399) Roundings 1

Net movement in property, infrastructure, plant & equipment 21,886 Bass Coast Shire Council 2012/2013 Financial Report Page 141

BASS COAST SHIRE COUNCIL Standard Statement of Capital Works Variance Explanation Report

Ref: Item Explanation $'000

21 Roads, Projects with cost variations more than $20,000 over original budget

footpaths etc. - Janieson St Corinella - asphalt surfaces (additional items) 22 - Gurdies St Helier Rd / Stewart Rd to Nyora St Helier Rd (project costs revised) 27 - Special Charge Scheme - Tenby Point (project cost revised) 30 - Woodleigh-St Helier Rd - major culvert repairs (additional item) 33 - Street decorations etc - poles & other infrastucture only (additional item) 42 - Town entrance signage (additional item) 45 - Rail trail asphalt Biggs Drive to South Dudley Rd (additional item) 64 - Have Ave Bass bridge (includes carry over from 11/12) 66 - Settlement Rd Cowes (Anderson Rd to Justice Rd) - renewal collector (project costs revised) 72 - Bass Hwy, Inverloch Rd Wonthaggi - Stage 1 between Fincher St & Carneys Rd (additional item) 120 - Blackspot - roundabout Justice and Settlement roads (includes carry over from 11/12) 200

over budget 721

Projects with cost variations more than $20,000 under original budget

- Other roadwork projects funded under desalination agreement (budgeted for completion in 13/14) (1,653) - Special charge scheme Bass Hwy, Graham St, McKenzie St Wonthaggi (budgeted for completion in 13/14) (1,327) - South Dudley investigations & design - traffic counts/functional layout (budgeted for completion in 13/14) (1,166) - Special charge scheme South Dudley - road component (project costs revised) (651) - Special charge scheme Pine Ave / Churchill Drive area - road component (budgeted for completion in 13/14) (597) - Special charge scheme - Surf Parade (service road) - Inverloch (scheme abandoned) (518) - Wonthaggi CBD traffic management improvements (budgeted for completion in 13/14) (498) - Special charge scheme Ramsay Boulevard Inverloch (scheme abandoned) (479) - Bicycle Paths Network. Wonthaggi map / South Dudley Rd Graham St (budgeted for completion in 13/14) (312) - Bicycle Paths Network Shire map / Guy Rd Corinella Jamieson to Bass (budgeted for completion in 13/14) (240) - Phillip Island Rd - primary bicycle path Potters Hill to Anderson (budgeted for completion in 13/14) (235) - Reconstruction of Lower Powlett Rd (budgeted for completion in 13/14) (212) - Bridges roads group (ongoing) (166) - Biggs Drive (project costs revised) (153) - Bicycle Paths Network Cowes map / Thompson Ave - Cowes Rhyll Rd (budgeted for completion in 13/14) (90) - Pathway extension program / Bass Hwy Dalyston Glen Forbes Rd (budgeted for completion in 13/14) (90) - Pathway extension program / Sunderland Bay rd Phillip Island (budgeted for completion in 13/14) (84) - Special charge scheme Sunset Strip - concept design (budgeted for completion in 13/14) (52) Bicycle Paths Network - Inverloch map / Sandy Mount Ave Dixon to Bayview Ave (budgeted for completion in - (48) 13/14) - Special charge scheme Pioneer Bay - concept design (budgeted for completion in 13/14) (37) - Carparks - Roads group (ongoing) (34) - Coglan Rd / Cowes Rhyll Rd to Settlement Rd (budgeted for completion in 13/14) (24)

under budget (8,666)

- Projects/budgets transferred to other asset categories (55)

Net expenditure over (under) budget: (8,000) Bass Coast Shire Council 2012/2013 Financial Report Page 142

BASS COAST SHIRE COUNCIL Standard Statement of Capital Works Variance Explanation Report

Ref: Item Explanation $'000

22 Drains Projects with cost variations more than $20,000 over original budget

- Wonthaggi CBD traffic management improvements drainage (budgeted for completion in 13/14) 27

- Urban drainage improvement program - Murray St Wonthaggi (project costs revised) 41

- Woods Estate Silverleaves - excess drainage (project costs revised) 46

- Wonthaggi Senior Citizens centre - carpark (includes carry over from 11/12) 47

- Tenby Point stormwater management (includes carry over from 11/12) 66

- Hunter St Wonthaggi - renewal of access roads, pits & pipes (includes carry over from 11/12) 103

- Special charge scheme South Dudley - drainage component (project costs revised) 300

over budget 630

Projects with cost variations more than $20,000 under original budget

- Special charge scheme Pine Ave / Churchill Drive area - drainage component (budgeted for completion in 13/14) (339)

- A'Beckett St Inverloch - outfall pipe drain stage 1 (budgeted for completion in 13/14) (115)

- Ayr Creek Reserve - Flood levels (project abandoned) (81)

under budget (535)

Net expenditure over (under) budget: 95

23 Land Projects with cost variations more than $20,000 over original budget

- Purchase of land for community purposes 50-52 & 54 Church St (includes carry over from 11/12) (34)

over budget (34)

Net expenditure over (under) budget: (34)

Land Projects with cost variations more than $20,000 over original budget

improvements - Coronet Bay boat ramp - gravel car park construction (additional item) 26 & open space - Kilcunda mobile library bus stop (additional item) 58

- Rehabilitation of Rhyll landfill (additional item) 66

- Wonthaggi Senior Citizens centre - carpark (additional item) 88

- Phillip Island Children's Hub (includes carry over from 11/12) 191

- Rehabilitation of Wonthaggi Landfill (includes carry over from 11/12) 34

- Grantville landfill - new cell construction & leachate system (includes carry over from 11/12) 514

- Cowes civic precinct landscaping (includes carry over from 11/12) 248

over budget 1,225

Projects with cost variations more than $20,000 under original budget

- Rehabilitation of Grantville landfill (budgeted for completion in 13/14) (541)

- Office accommodation Wonthaggi (budgeted for completion in 13/14) (391)

- Saltwater Creek Reserve - development construct link path (budgeted for completion in 13/14) (29)

- Cowes oval drainage (budgeted for completion in 13/14) (102)

under budget (1,063)

- Projects/budgets transferred from other asset categories 2,556

Net expenditure over (under) budget: 2,718 Bass Coast Shire Council 2012/2013 Financial Report Page 143

BASS COAST SHIRE COUNCIL Standard Statement of Capital Works Variance Explanation Report

Ref: Item Explanation $'000

24 Buildings Projects with cost variations more than $20,000 over original budget

- Cowes depot office/amenities - cladding and floor coverings (project costs revised) 36

- Vista Place Carpark construction of toilet (includes carry over from 11/12) 67

- Phillip Island Children's Hub (includes carry over from 11/12) 86

- Wonthaggi Civic Centre - Master plan (includes carry over from 11/12) 143

- Office accommodation Wonthaggi (includes carry over from 11/12) 553

over budget 885

Projects with cost variations more than $20,000 under original budget

- Wonthaggi Civic Centre - stage 1 upgrade (budgeted for completion in 13/14) (488)

- Wonthaggi North Kindergarten - extension (budgeted for completion in 13/14) (480)

- Cowes Cultural precinct redevelopment (budgeted for completion in 13/14) (372)

- Wonthaggi aquatic centre - stage 2 pool redevelopment (budgeted for completion in 13/14) (300)

- Building renewal program - roofing components (ongoing) (102)

- Foreshore public toilet program - Western Carpark Surf Parade Inverloch (budgeted for completion in 13/14) (82)

under budget (1,824)

- Projects/budgets transferred to other asset categories (525)

Net expenditure over (under) budget: (1,464)

25 Plant & Projects with cost variations more than $20,000 under original budget

equipment - Plant - purchases (costs revised) (80) - Fleet vehicle change-overs (costs revised) (46)

under budget (126)

- Projects/budgets transferred to other asset categories (75)

Net expenditure over (under) budget: (201)

26 Other (office Projects with cost variations more than $20,000 over original budget

furniture & - Information technology equipment (additional item) 43 equipment and - Country football / netball program - upgrade facilities (additional item) 25 other over budget 68 structures) Projects with cost variations more than $20,000 under original budget

- Anderson Rd boat ramp upgrade (budgeted for completion in 13/14) (121) - Art in public places (budgeted for completion in 13/14) (47) - Mobile skate park (budgeted for completion in 13/14) (46) - Wonthaggi animal shelter (budgeted for completion in 13/14) (22) - Cape Paterson First Surf Toilet Block - connect to sewer (budgeted for completion in 13/14) (20)

under budget (256)

- Projects/budgets transferred to other asset categories (1,901)

Net expenditure over (under) budget: (2,089)

All variations to the original budgets for capital works are tracked via Council's quarterly budget reviews. These reviews take into account Note: all expected positive & negative variances together with deferred and new projects. Bass Coast Shire Council 2012/2013 Financial Report Page 144

Notes to the Standard Statements

Note 1: Basis of preparation of Standard Statements

The Annual Financial Report shows the actual results for the year.

The attached Standard Statements and explanatory notes form a special purpose financial report prepared specifically to meet the requirements of the Local Government Act 1989 and the Local Government (Financial and Reporting) Regulations 2004.

The Standard Statements provide information in relation to an aspect of Council's financial management. They should be read in conjunction with one another to obtain an overall understanding of Council's financial position and management.

The Standard comprehensive Income Statement, Balance Sheet, Cash Flow Statement and Capital Works Statement are consistent with the 2012/13 Budget and are prepared on bases consistent with the Financial Report.

This report is a summary of the information found in the budget and the financial reports and as such cannot be expected to provide as full an understanding of financial performance as the complete report from which it is prepared. The budget and financial report together with their detailed notes should be examined for further detailed information.

The Standard Statements are not a substitute for the general purpose financial report presented separately in the Annual Report, as they have not been prepared in accordance with all Australian Accounting Standards or other authoritative professional pronouncements.

The Standard Statements compare Council’s financial plan, expressed through its budget, with actual performance. The Local Government Act 1989 requires explanation of any material variances. Council has adopted a materiality threshold of ten per cent. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature.

The budget figures included in the Statements are those adopted by Council on 25 July 2012. The budget was based on assumptions that were relevant at the time of adoption of the budget. The Council sets revenue and expense targets in this budget in order to meet Council's business plan and financial performance targets for both the short and long term. The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were not considered predictable.

Detailed information on the actual financial results are contained in the general purpose financial report presented in the Annual Report. The detailed budget can be obtained by contacting Council or through the Council’s website. The Standard Statements must be read with reference to these documents. Sass Coort Shire Council 2012120 I J Financial Report Page 145

Certification of the Standard Statements

In my opinion the accompanying standard statements have been prepared in accordance with the Local Government

Act 1989. the local Government (Finance & Reporting)~egulations 2004, Australian Accounting Standards and other mandatory professional reporting requirements.

Danny Luna PRINCIPAL ACCOUNTING OFFICER

Date: I 8 September 20 I J Wonthaggi

In our opinion. the accompanying standard statements presents fairly the financial transactions of Bass Coast Shire Council for the year ended 30 June 2013 and the financial position of the Council as at that date.

As at the date of signing. we are not aware of any circumstances which would render any particulars in the financial report to be misleading or inaccurate.

On 18 September 2013 we were authorised by the Council to certify the standard statements in its final form on behalf of the Council.

Clarer6«-- Le Serve COUNCILLOR

Date: I 8 September 20 1l Wonthaggi

Neil Rankine COUNCILLOR

Date: 18 September 20 I l Wonthaggi

Date: I 8 September 20 13 Wonthaggi Level 24, 35 Collins Street Melbourne VIC 3000 VAGO Telephone 61 3 8601 7000 Facsimile 61 3 8601 7010 Victorian Auditor-General's Office Email [email protected] Website www.audit.vic.gov.au

INDEPENDENT AUDITOR'S REPORT To the Councillors, Bass Coast Shire Council

The Financial Report and Standard Statements The accompanying financial report for the year ended 30 June 2013 of the Bass Coast Shire Council which comprises comprehensive income statement, balance sheet, statement of changes in equity, statement of cash flows, notes to the financial report and the certification of the financial report has been audited. The accompanying standard statements for the year ended 30 June 2013 of Council which comprises standard income statement, standard balance sheet, standard cash flows statement, standard statement of capital works, notes to the standard statements and the certification of the standard statements have been audited. The Councillors' Responsibility for the Financial Report and Standard Statements The Councillors of the Bass Coast Shire Council are responsible for the preparation and the fair presentation of: • the financial report in accordance with Australian Accounting Standards, and the financial reporting requirements of the Local Government Act 1989 • the standard statements in accordance with the basis of preparation as described in Note 1 to the statements and the requirements of the Local Government Act 1989. The Councillors are responsible for such internal control as the Councillors determine is necessary to enable the preparation and fair presentation of the financial report and standard statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility As required by the Audit Act 1994 and the Local Government Act 1989, my responsibility is to express an opinion on the financial report and standard statements based on the audit, which has been conducted in accordance with Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the standard statements and financial report are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report and standard statements. The audit procedures selected depend on judgement, including the assessment of the risks of material misstatement of the financial report and standard statements, whether due to fraud or error. In making those risk assessments, consideration is given to the internal control relevant to the entity's preparation and fair presentation of the financial report and standard statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Councillors, as well as evaluating the overall presentation of the financial report and standard statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion .

Auditing in the Public Interest Independent Auditor's Report (continued) Independence The Auditor-General's independence is established by the Constitution Act 1975. The Auditor General is not subject to direction by any person about the way in which his powers and responsibilities are to be exercised. In conducting the audit, the Auditor-General, his staff and delegates complied with all applicable independence requirements of the Australian accounting profession. Opinion In my opinion:

(a) the financial report presents fairly, in all material respects, the financial position of the Bass Coast Shire Council as at 30 June 2013 and of its financial performance and its cash flows for the year then ended in accordance with applicable Australian Accounting Standards, and the financial reporting requirements of the Local Government Act 1989.

(a) the standard statements present fairly, in all material respects, in accordance with the basis of preparation as described in Note 1 to the statements and the requirements of the Local Government Act 1989

Basis of Accounting for Standard Statements Without modifying my opinion, I draw attention to Note 1 to the standard statements, which describes the basis of preparation. The standard statements are prepared to meet the requirements of the Local Government Act 1989. As a result, the standard statements may not be suitable for another purpose. Matters Relating to the Electronic Publication of the Audited Standard Statements and Financial Report This auditor's report relates to the standard statements and financial report of the Bass Coast Shire Council for the year ended 30 June 2013 included both in the Bass Coast Shire Council's annual report and on the website. The Councillors of Bass Coast Shire Council are responsible for the integrity of the Bass Coast Shire Council website. I have not been engaged to report on the integrity of the Bass Coast Shire Council website. The auditor's report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report and standard statements are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited standard statements and financial report to confirm the information contained in the website version of the financial report and standard statements.

MELBOURNE John Doyle 23 September 2013 f Auditor-General

2 Auditing in the Public Interest