2016 ANNUAL REPORT 2017
INTRODUCTION
CONTENTS
Introduction 4 Greater Bendigo profile 4 Snapshot of Council 5 Demographic profile 6 The year in review 7 Highlights of the year 8 Challenges and future outlook 15 Message from the Mayor and Chief Executive Officer 16 Financial summary 18 Description of operations 20 Our Council 22 Current councillors 22 Retiring councillors 24 Our people 25 Organisation structure 26 City staff 27 Equal employment opportunity 28 Other staff matters 29 Our performance 30 Planning and accountability framework 30 Council Plan 31 Performance 31 Theme 1: Leadership and Good Governance 32 Theme 2: Planning for Growth 40 Theme 3: Presentation and Vibrancy 47 Theme 4: Productivity 57 Theme 5: Sustainability 60 Governance, management and other information 32 Governance 66 Management 70 Governance and management checklist 71 Statutory Information 74 Glossary 78 Financial statements 2016/2017 80
ACKNOWLEDGMENT OF COUNTRY The City of Greater Bendigo is on both Dja Dja Wurrung and Taungurung Country whose ancestors and their descendants are the traditional owners of this Country. We acknowledge that they have been custodians for many centuries and continue to perform age old ceremonies of celebration, initiation and renewal. We acknowledge their living culture and their unique role in the life of this region. WELCOME TO THE ANNUAL REPORT FOR 2016/2017
Council is committed to transparent reporting and accountability to the community, and the Annual Report for 2016/2017 is the primary means of advising the City of Greater Bendigo community about Council’s operations and performance during the financial year.
GREATER BENDIGO PROFILE
The City of Greater Bendigo is located It also includes productive agricultural The local population is continuing to in the centre of Victoria, covering areas and many small towns and grow and is becoming increasingly almost 3,000 square kilometres. villages such as Heathcote, Axedale, culturally, religiously and ethnically Greater Bendigo is a vibrant, creative Huntly, Marong, Elmore, Goornong, diverse. Council is committed to and culturally enriched major regional Kamarooka, Lockwood, Neilborough, Greater Bendigo being a community centre for northern Victoria and Sebastian, Woodvale, Raywood, that understands and respects southern NSW, and has the third Mia Mia and Redesdale, which are cultural and religious differences, largest urban area in Victoria. renowned for their strong sense of supports multiculturalism and actively community and lifestyle. promotes cultural inclusion.
4 INTRODUCTION
SNAPSHOT OF COUNCIL
The City of Greater Bendigo (the City) has nine councillors across three wards.
Lockwood Ward Whipstick Ward Localities include: Big Hill, Golden Localities include: Ascot, Avonmore, Gully, Golden Square, Harcourt Bagshot, Bagshot North, Barnadown, North, Kangaroo Flat, Leichardt, Bendigo, California Gully, Drummartin, Lockwood, Lockwood South, Maiden Eaglehawk, Eaglehawk North, East Gully, Mandurang, Mandurang South, Bendigo, Elmore, Epsom, Fosterville, Marong, Myers Flat, Quarry Hill, Goornong, Hunter, Huntly, Huntly Ravenswood, Sailors Gully, Sedgwick, North, Ironbark, Jackass Flat, Shelbourne, Spring Gully, West Kamarooka, Long Gully, Neilborough, Bendigo, Wilsons Hill. North Bendigo, Raywood, Sebastian, Wellsford, Whipstick, White Hills, Woodvale.
Eppalock Ward Localities include: Argyle, Axe Creek, Elmore Axedale, Bendigo, Costerfield, Derrinal, WHIPSTICK WARD East Bendigo, Emu Creek, Eppalock, Raywood Flora Hill, Heathcote, Junortoun, Kennington, Kimbolton, Knowsley, Neilborough Ladys Pass, Longlea, Lyal, Mia Mia, Sebastian Goornong Mount Camel, Myrtle Creek, Redcastle, Redesdale, Strathdale, Strathfieldsaye, Tooleen. Huntly
Eaglehawk Bendigo Myers Flat Epsom Marong Maiden Gully
Golden Square Flora Hill Axedale Strathfieldsaye LOCKWOOD WARD Kangaroo Mandurang Lockwood Flat EPPALOCK WARD Costerfield
Ravenswood Heathcote
Mia Mia
Redesdale Annual Report 2016/2017 5 DEMOGRAPHIC PROFILE
• Bendigo has an estimated • The Greater Bendigo SEIFA score of • 19.2% of residents are aged under population of 111,783 people (as at 983 (index of inequalities) is lower 15 years June 30, 2016) than the Victorian average of 1,010 • Number of young people (25-34 • More than 23.9% of the population • 47.3% of people have no formal years) in the workforce – 7,077 are aged 60 years and over (ABS qualifications residents or 18.7% of workforce 2016) • 26.3% of people live on their own • 76.8% of the City's resident workers • About 16,000 people currently live were employed locally • 23.1% of residents volunteer in the City’s rural communities, • The median weekly household • Compared to regional Victoria, which is about one-in-seven of the income in Greater Bendigo is $1,184 Greater Bendigo has: entire residential population compared to $1,419 for Victoria - A larger percentage of persons • 8% of the population were • Median house price - $325,000 born overseas, compared to the aged 20-24 (6.9% compared to Victorian average of 28.3% 5.5%) • 26.7% of households rent - A smaller percentage of persons aged 65-69 (5.7% compared to 6.6%) • 85% of residents live in urban Bendigo
of Greater Bendigo residents 85% live in urban Bendigo
6 THE YEAR IN REVIEW
THE YEAR IN REVIEW
9,885 47,703 immunisations tonnes of garbage, administered recycling and organics collected from kerbside 47,796 bins residential properties
41,000 1,287 trees, shrubs and health grasses planted inspections 39,638 of food people attended businesses 213 performances at Ulumbarra Theatre
142,541 68,956 visitors to the Bendigo hours of personal, Art Gallery respite and general 38,548 home care provided library members
1,117 18km planning new roads constructed permits issued 17,892 registered dogs
Annual Report 2016/2017 7 HIGHLIGHTS OF THE YEAR
July • The Bendigo Art Gallery won the • Work commenced on a $150,000 • The delivery of alomst 40,000 Victoria Day Award for the Arts upgrade to the Elmore tennis new organics bins commenced to courts households in the urban Bendigo • The City's Citizens’ Jury sat for the and Marong areas as part of the first time to consider “What should • Council adopted the Domestic City’s new organics collection Council spend our money on to Animal Management Plan 2016- service shape the community’s future?” 2021. The plan recommends the creation of new dog parks in • The City’s Economic Development • A $246,000 project to upgrade the Kangaroo Flat and California Gully unit launched a new publication lighting at the Wade Street Oval, called Made in Bendigo Golden Square to training standard • Work commenced on a $350,000 to showcase the region’s commenced upgrade to Kennington Recreation manufacturing and mining sectors Reserve tennis/netball courts
8 THE YEAR IN REVIEW
August • The Rosalind Park Recreation Reserve Precinct Master Plan and Management Framework 2014 received an Australian Institute of Landscape Architecture (Victoria) Award • An exhibition celebrating the sensational fashions created by Jenny Kee and Linda Jackson at their Flamingo Park Frock Salon in Sydney opened at the Bendigo Visitor Centre’s Living Arts Space
• Renowned Australian fashion to the Greater Bendigo designer Toni Maticevski’s Planning Scheme to enable Maticevski: Dark Wonderland the implementation of the exhibition opened at Bendigo Eaglehawk Structure Plan Art Gallery • Work began to upgrade and • The final report on the extend the Spring Gully Soccer implementation of the City's Pavilion Independent Review was • Council endorsed a Cultural completed Diversity and Inclusion • The City launched its newly Plan, the Greater Bendigo established Disability and Housing Strategy, the Rural Inclusion Reference Committee Communities Strategy and the • The Minister for Planning Greater Bendigo Environment approved an amendment Strategy
Annual Report 2016/2017 9 September • The City made vertical wall space available at the McIvor Road Skate Park for local artists to display their work as part of a 12 month trial • The City’s new organics collection began for almost 40,000 residents in Bendigo and Marong • The City allocated $185,131 to 54 community groups through Round 1 of the 2016/2017 Community Grants • A new art installation called Imagine.Wonder.Full was presented in the Rosalind Park Conservatory as part of the annual children’s Art • Work commenced on the • 2016 Council elections were held in the Conservatory program construction of a new roundabout • The restored Vahland drinking • The City was announced as a at the intersection of Chum and fountain was unveiled at the finalist in the Government category Booth Streets in Golden Square. intersection of Bull Street and Pall for the 2016 Premier’s Sustainability This was the first of three new Mall Awards for the Lighting the Regions roundabouts to be constructed partnership program along Chum and Barnard Streets • The City hosted a reception at the Bendigo Town Hall to recognise • Hundreds of local children the 13 Greater Bendigo residents October and families enjoyed a day of who received an Australian Honour • Over 60 local residents, groups and entertainment as part of FunLoong during 2015 and 2016 and the nine organisations contributed ideas Fun Day in Hargreaves Mall residents who received an Australian to the City's Epsom, Ascot, Huntly • Local businesses and freight Services Medal since 2007 Floodplain Management Study operators were invited to take part in a study of Bendigo’s freight sector
10 THE YEAR IN REVIEW
November • New data on the State • Construction started on the Government’s ‘Know Your Council’ $6M Bendigo Tennis Centre • Cr Margaret O’Rourke was elected website shows the City performed redevelopment Mayor and Cr Rod Fyffe became the well in 2015/2016 first Deputy Mayor • For the first time Bendigo became • Bendigo hosted Australia’s first the most searched regional area • Bendigo took out three major Cycling Innovation Showcase and in Australia by Australians on awards at the 2016 RACV Victorian launched CyclePort – the world’s the world’s largest travel site Tourism Awards. The City took out most sophisticated bike fleet tripadvisor ® the Destination Marketing category management system while Masons of Bendigo won the • In 2016, more than 3,100 students Restaurant and Catering category • Council approved the development and teachers from 38 different and Bendigo Tramways won the of Plan Greater Bendigo, a first-of-a- schools from throughout regional Cultural Tourism category for the kind plan for a regional city that will Victoria benefitted from the third year in a row shape the future development of Bendigo Arts Access program, which is designed to assist • The Bendigo Livestock Exchange the municipality students, disadvantaged groups commenced work to prepare and young people in rural areas to for the introduction of the State December make the most of Bendigo’s arts Government-legislated new sheep • A series of five new art works were and cultural performances and and goat electronic identification unveiled at the multi-storey car exhibitions program park end of Chancery Lane • The City supported the Community • The City held its fifth and final • Research that used labelling and Christmas Lunch at the All Seasons citizenship ceremony for 2016, signage to promote healthier food Conservatory on Christmas Day which brought the total number of choices in Bendigo supermarkets and presented two New Year’s Eve new Australian citizens in Greater won the 2016 VicHealth Promoting firework displays to celebrate the Bendigo to 282 for the year Healthy Eating Award start of 2017 • Bendigo Airport was Highly • Summer in the Parks commenced Commended in the ‘Airport with the Lighting of the Christmas Innovation and Excellence’ Tree family event in Rosalind Park category at the Australian Airports Association Airport Industry Awards
Annual Report 2016/2017 11 January • The City in partnership with Huntly Huntly, Strathfieldsaye, Maiden community groups held a free Gully, Mia Mia, Heathcote, Elmore, family fun day in Huntly Junortoun, Kangaroo Flat, Golden • The City held a Garden Party at Square and Goornong Dudley House to bring the creative • Residents were encouraged to have community together to celebrate their say on the future of Bendigo’s the start of the 2017 creative public spaces at a series of listening calendar posts throughout Greater Bendigo • Volunteer Garth Keech and activist as part of the development of the Khayshie Tilak Ramesh are named Public Space Plan Conceptual 50 as the 2017 Greater Bendigo Citizen year vision and Young Citizen of the Year • Residents celebrate at Australia Day activities and ceremonies at Lake Weeroona, Axedale, Eaglehawk,
12 THE YEAR IN REVIEW
February March April • The City launched a new 2017 • Bendigo Art Gallery celebrated • The City engaged a waterway Bendigo & Heathcote Region 130 years with an exhibition management and maintenance Official Visitor Guide and the that explored the gallery’s vast specialist company to remove an Bendigo Dining & Shopping Guide collection called Collective vision: infestation of curly pondweed in • The City's Tourism unit won a 130 years Lake Weeroona bronze award for Destination • The City trialled an Envirosonic • Bendigo Art Gallery presented the Marketing at the Qantas Australian ultrasound wave algae control renowned art installation House of Tourism Awards in Darwin system in Kennington Reservoir Mirrors – the hit of Hobart’s 2016 • The City successfully undertook a to combat the recurrence of blue Dark Mofo event - in Rosalind Park green algae $299,000 rehabilitation of Olympic • Construction started on the Parade between Mackenzie Street • Greater Bendigo residents helped new $2.7M Strathfieldsaye Early West and Mockridge Drive using clean up nine local sites on Clean Learning Hub a new foam bitumen stabilisation Up Australia Day • The 2017 Bendigo Easter Festival construction method saving both • Bendigo hosted it’s first-ever Our was an outstanding success time and money Choice Expo aimed at increasing with thousands of people taking • Mayor Cr Margaret O’Rourke and community inclusion for people advantage of all the activities on Cr James Williams were part of a with a disability and their carers offer delegation that travelled to China • To celebrate National Playgroup • The City called for feedback • Mayor Cr Margaret O’Rourke Week, the City and community on a new 10-year Public Toilet was appointed to the 2017 Local organisations hosted a family fun Strategy. The strategy is designed Government Mayoral Advisory day in Long Gully to provide Council with clear Panel. This was the first time in • Ten Eaglehawk businesses signed recommendations about where four years the Council had been up to improve their accessibility for and how future investment in represented on the panel people with a disability as part of public toilet facilities should be • Council adopted the first Urban the Inclusive Towns project made Design Framework to guide future • Work commenced on the new development of the Strathfieldsaye $4.6M, two hectare Garden for the township Future at Bendigo Botanic Gardens, • The City supported National Youth White Hills Week by working with young • A new $2.2M Canterbury Park people’s groups to organise an community pavilion in Eaglehawk extensive calendar of events was completed
Annual Report 2016/2017 13 • Greater Bendigo recorded improvements across all performance measures in the annual Local Government May • Work commenced to construct a Community Satisfaction Survey new three span bridge over the • The City began trialling a new • Central Australian artist Margaret Bendigo Creek floodway in Scott online parking payment system to Loy Pula won the 2017 Arthur Guy Street, White Hills allow residents to more easily pay Memorial Painting Prize for her for their parking • The talent of young local artists 2016 work Anatye (bush potato) aged nine to 25 was recognised • A bold new public art work to • The City installed 21 new parking through the City’s 2017 Raw Arts bring both colour and life to the machines with credit card facilities Awards and Exhibition Bath Lane shopping precinct was • A campaign to raise $300,000 • The Bendigo Livestock Exchange in installed to investigate the viability of Wallenjoe Road, Huntly celebrated • As part of National Volunteer Week, developing a dementia village in its 20 year anniversary the City held functions to thank Heathcote was launched the more than 500 people who June • The City celebrated 100 years volunteer with the organisation of Maternal and Child Health • Work began on the $4.5M RSL • The City and Bendigo Bank Central Services in Victoria with a special Soldiers Memorial Institute (formerly Fountain Court) joined celebration at the Bendigo Library forces to establish a permanent art revitalisation project • Council formally adopted the 2017- space called Exhibit B • The $15M redevelopment of the 2021 Community Plan to guide its Bendigo Airport is officially opened • The City celebrated NAIDOC Week work over the next four years with a special flag raising ceremony • The City trialled a new, smart • Work was undertaken to remove waste compacting bin called a • The City completes a $100,000 vegetation from two islands at Lake Clean Cube at Lake Weeroona as refurbishment of Flora Hill’s Weeroona to discourage Ibis from part of its ongoing commitment Summit Drive Play Space nesting on the islands during the to improve the efficiency of waste breeding season services
14 THE YEAR IN REVIEW
CHALLENGES AND FUTURE OUTLOOK
Challenges and • The long-term impacts of the • Investigating the viability of a ‘gov rate-capping legislation imposed hub’ for Bendigo and advocating opportunities by the Victorian Government, and for decentralisation of government • There is significant inequality in ensuring the organisation is able to services and agencies health status and access to life deliver contemporary services to a • Supporting businesses that attract opportunities between geographic growing community visitors, residents and workers, areas across Greater Bendigo • Ensuring Council is able to manage especially in emerging industries • Declining State Government additional responsibilities such and new technologies funding in key service areas such as as levee banks and management • Keeping Council assets and maternal and child health, libraries of facilities on Crown Land in a infrastructure in good repair and fit and immunisation financially responsible way for purpose • Reducing the amount of waste • Building and maintaining essential going to landfill to reduce costs The future infrastructure - footpaths, open and environmental impact, and • Ensuring sufficient growth and space, drainage and roads - to keep encouraging better management of diversity in housing availability up with population growth the community’s waste • Completing major infrastructure • Continuing to deliver high quality • Poor access to fast digital projects such as the Bendigo services and infrastructure to meet communications technology Stadium expansion and new indoor the needs of a growing and more remains a barrier to many aquatic and wellbeing centre diverse community businesses and residents. Taking • Building and maintaining a diverse advantage of the opportunities and innovative economy to ensure provided by the NBN and online economic sustainability services will be important for Council and the community • Sustaining our thriving arts, culture and tourism industries
Annual Report 2016/2017 15 The review was undertaken in 2013 waste (cooked and uncooked food, MESSAGE FROM to see what improvements could be bones, tea bags, coffee grounds, paper THE MAYOR AND made to the City’s operations and towel, tissues and green waste) from included 69 recommendations. The landfill to be recycled into useable CHIEF EXECUTIVE process created a more efficient compost. The service is on track to and responsive, better governed collect 12,000 tonnes of organic waste OFFICER organisation equipped to engage in the first 12 months of operation. with and meet the needs of its Prior to the completion of the 2012- Welcome to the City of Greater growing community. The review 2016 Council term, Council endorsed Bendigo 2016/2017 Annual Report. identified approximately $4.2M in major strategies to guide the future savings for the four years to June This report details how the Council development of the municipality. 30, 2017 and assisted in removing and the organisation worked together The City’s first Cultural Diversity and $3.67M of items from the 2016/2017 to deliver a range of services, major Inclusion Plan aims to support our Budget. It also introduced a Service projects and other initiatives to community to respect cultural and Review Program to reach all parts of enhance the liveability of the Greater religious differences, the Bendigo the organisation, a new framework Bendigo community. Housing Strategy establishes a for evaluating, prioritising and framework for how the municipality The 2016/2017 financial year was funding capital works, and a new will grow in the future, the Rural the first for the Local Government Personnel Evaluation System to track, Communities Strategy aims to sector operating in a rate capping benchmark and continuously improve increase support for Bendigo’s rural environment, so the completion of the the performance and output of communities, and the Greater Bendigo Independent Review of the City was directorates, units and individuals. Environment Strategy is based on the timely. Following the successful trial of an internationally-recognised One Planet organics waste collection service, the format and aims to provide the local City rolled out the service to almost community with clean air, water and a 40,000 households in Bendigo and healthy natural environment. Marong in September. Each household The City’s first Citizens’ Jury process received a lime-green lidded bin, was completed in October, when it kitchen caddy and caddy liners. handed down a report making 44 The service diverts organic
16 THE YEAR IN REVIEW
recommendations across a range structure was designed to ensure the benefit our municipality and wider of policy areas. The report was organisation could continue to make region for many years to come. This informed by hearing from a range an important contribution at a local work is ongoing and we are working of local organisations, community and regional level, and ensure it could with the community to do this. groups and residents, and influenced deliver on the objectives set by the In regards to Greater Bendigo’s role the development of the 2017-2021 Council in the new Community Plan. in developing important regional Community Plan. We learnt that community satisfaction infrastructure, a key highlight was the A new Council was sworn-in in is on the rise and it was very pleasing official opening of stage two of the November. For the first time in Greater to record improvements across all Bendigo Airport redevelopment, which Bendigo’s history there was a majority performance measures in the annual delivered a new 1,600m runway and of women elected. Council also Local Government Community associated taxiways, signage, lighting elected its first Deputy Mayor, Cr Rod Satisfaction Survey, which surveyed and fencing infrastructure. This was Fyffe. Council adopted a new vision 400 people over February and March. a project more than a decade in the Greater Bendigo – creating the world’s Thorough, meaningful and accessible making and was funded by Local, most liveable community and changed community engagement has been an State and Federal Governments. the name of the Council Plan to the objective of the new Council, which Together, we are proud of the Community Plan to better reflect the has re-evaluated how it reaches the achievements recorded in the purpose and key focus of the plan. The community and placed an emphasis 2016/2017 financial year and thank plan is guided by six overarching goals: on going ‘to the people’ by making use current and former councillors and Lead and govern for all; Wellbeing of events where residents are already staff for their contribution to shaping and fairness; Strengthening the gathering. In particular, visiting rural our wonderful region. economy; Presentation and managing communities has been a key focus. growth; Environmental sustainability; We hope you enjoy reading the Annual Embracing our culture and heritage. The City also commenced preparation Report. of Plan Greater Bendigo, a first-of-a- Mayor Cr Margaret O’Rourke The organisation also welcomed kind plan for a regional city that will three new directors, following the Chief Executive Officer shape the future development of our Craig Niemann first stage of a two-stage restructure municipality. It aims to support a local process. The organisation went from population of 200,000 and a regional five directorates to four and then population of 300,000 by 2050. When commenced refining the structure complete, the plan will deliver a list of each directorate. The new of top infrastructure projects that will
Annual Report 2016/2017 17 FINANCIAL SUMMARY
Financial summary Council’s financial position continues 2013/2014 2014/2015 2015/2016 2016/2017 to remain sound. Detailed information 0.00% relating to Council’s financial performance is included throughout the -1.00% Annual Report, but also in the Financial Statements and Performance Statement -2.00% sections of this report. -3.00% Operating position -4.00% Council achieved a surplus of $50.18M in 2016/2017. This surplus is higher than -5.00% the prior year surplus of $41.49M. The main reason for the increase is due to -6.00%
non-monetary contributions to capital % ratio underlying result Adjusted and grants received in advance in the -7.00% 2016/2017 financial year. The adjusted underlying surplus of Council for the year, after removing 50.0% nonrecurring capital grants, cash capital contributions and non-monetary capital 45.0% contributions, is a deficit of $8.07M 40.0% or -4.28 per cent when compared to adjusted underlying revenue. This 35.0% compares unfavourably to the target 30.0% of >0 per cent. In the current year, the 25.0% underlying result has been impacted by Landfill operations experiencing higher 20.0% expenditure than budgeted due to EPA 15.0% costs and the recognition of landfill 10.0% provision at the Eaglehawk and White Hills sites. Regaining and sustaining a 5.0%
position of adjusted underlying surplus % ratio and borrowing Loans 0.0% is a critical part of Council's financial 2013/2014 2014/2015 2015/2016 2016/2017 strategy. This will enable renewal where appropriate of the $1.53B of community assets under Council’s control. Obligations Liquidity Cash has increased by $14.8M from the Council aims to ensure that it is able Council spent an additional $9.13M prior year, mainly due to the timing of to maintain its infrastructure assets on upgrade and expansion works. receiving additional grant funding in at the expected levels, while at the Whilst currently close to targets, it is anticipated there will be future June, and borrowings to ensure available same time continuing to deliver the pressure on asset renewals and funds for ongoing works on capital services needed by the community. service capability in future years due projects that are due to be completed To bridge the infrastructure gap, to cost shifting, the methodology used in 2017/2018. A large percentage of the Council invested $29.47M in renewal in setting the rate cap and the growing cash balance at 30 June 2017 has some works during the 2016/2017 year. At needs of a regional city. form of restriction or future allocation June 30, 2017 Council’s debt ratio, applied to it. The working capital ratio, which is measured by comparing which assesses Council’s ability to meet interest bearing loans and borrowings current commitments, is calculated by to rate revenue was 47.6 per cent. measuring current assets as a percentage Council’s asset renewal ratio, which of current liabilities. Council’s result is measured by comparing asset of 236.56 per cent is an indicator of a renewal expenditure to depreciation, satisfactory financial position and within was 94.4 per cent and is below the the expected target band of being greater expected target of 100 per cent. While than 150 per cent. not meeting this target for renewals,
18 THE YEAR IN REVIEW
Stability and efficiency 300% Council raises revenue from a wide range of sources including rates, user 250% fees, fines, grants and contributions. Council’s rates concentration, which 200% compares rate revenue to adjusted underlying revenue, was 66 per cent for the 2016/2017 year, within the 150% expected target band of 40-80 per cent. This resulted in an average 100% residential rate per residential assessment of $1,637.27. Working Capital ratio % ratio Working Capital 50%
0% 2013/2014 2014/2015 2015/2016 2016/2017
100%
80%
60%
40%
20% Asset Renewal ratio % ratio Renewal Asset 0% 2013/2014 2014/2015 2015/2016 2016/2017
70%
65%
60%
55%
Rates Concentration ratio % ratio Concentration Rates 50% 2013/2014 2014/2015 2015/2016 2016/2017
Annual Report 2016/2017 19 DESCRIPTION OF OPERATIONS
The City is responsible for a number of services, including family and children’s services, traffic regulation, open space, youth facilities, waste management and community building, and matters concerning business development, planning for appropriate development and ensuring accountability for Council’s Budget. This broad range of community services and infrastructure for residents supports the wellbeing and prosperity of our community. This Annual Report for 2016/2017 aligns to the Council Plan 2014-2017. Council’s future vision, strategic objectives and strategies to further improve services and facilities are described in the Community Plan 2017-2021. Refer to the section on Our Performance for more information about specific Council services. The Major capital works • Change rooms and court facilities delivery of services, facilities, support • Retail and administrative areas During the 2016/2017 financial year, and advocacy to achieve the Strategic major capital works included: • 12 netball courts Objectives is measured by a set of • Improved public access to service performance indicators and Greater Bendigo Indoor Aquatic and amenities measures. Council also has a wide Wellbeing Centre at Kangaroo Flat • Meeting rooms range of responsibilities under State • Crèche and Federal Government legislation. Construction on the $31M Greater Bendigo Indoor Aquatic and Wellbeing • Car parking Centre began in July 2016. When Economic factors complete, the facility will be accessible Garden for the Future, Bendigo The 2016/2017 Budget was the first year round for people of all ages and Botanic Gardens, White Hills budget under the State Government’s abilities and will feature: Work on the new $4.6M, two hectare ‘Fair Go Rates’ System. The rate cap for • 51.5m, eight-lane swimming pool Garden for the Future at Bendigo 2016/2017 was 2.5 per cent, which has • Indoor splash play area Botanic Gardens, White Hills began in April 2017. been followed by a cap of 2 per cent • Learn to swim pool for 2017/2018. Council’s program of • Hydrotherapy pool The new garden will include: service reviews continues, alongside • A stage and grassed amphitheatre the continuation of a larger than usual • Wellness centre for outdoor performances and 2016/2017 capital works program. • Spa and sauna cinema • Gymnasium • New toilet facilities • Multipurpose rooms and café • A number of semi-intimate Bendigo Stadium expansion gathering spaces for weddings and corporate functions Construction on this $16.5M • A promenade that can be used for redevelopment began in 2016 and markets and other events will set a benchmark for high quality indoor and outdoor sporting and events facilities, including: • An indoor three court/show court expansion catering for up to 4,000 spectators • Kiosk/kitchen/bar
20 THE YEAR IN REVIEW
Major changes new structure is designed to make infrastructure. Savings identified the organisation more responsive to across the life of the project meant A major change in 2016/2017 was the community needs and best support an additional taxiway at the southern election of a new Council in October the new Council. end of the runway and additional 2016. Seven new councillors were boundary fencing were also able to be elected and two councillors from the The City also successfully rolled out delivered. previous Council were re-elected. the new organics collection service to During 2016/2017, the new Council urban Bendigo and Marong following The airport can now welcome aircraft undertook comprehensive planning a successful trial in 2015/2016. This is carrying up to 70 passengers or and community engagement to the biggest change to waste services in weighing up to 30 tonne. The $15M develop a new Community Plan Greater Bendigo for 30 years. project was jointly funded by the 2017-2021 (formerly the Council Plan) City ($5.3M), the State Government and then develop the first budget for ($4.7M) and the Federal Government 2017/2018. Major achievements ($5M). This project builds on previous work delivered in 2014, including During 2016/2017, the City also Completion of the Bendigo Airport the development of 25 new aviation implemented a new organisation redevelopment has been a substantial hangar sites, three new taxiways, structure and went from five achievement of the 2016/2017 improved road access and the directorates to four. The directorates year. The $15M redevelopment has installation of critical drainage are Strategy and Growth, Health and delivered a new 1,600m ‘Class 3C’ infrastructure. Wellbeing, Presentation and Assets runway and associated taxiway, and Corporate Performance. The lighting, signage and fencing
Annual Report 2016/2017 21 OUR COUNCIL
In October 2016, Council elections were held across Victoria. A new Greater Bendigo City Council was elected, which was made up of seven first-time councillors and two returning councillors. The remaining seven councillors from the previous Council retired. Greater Bendigo is divided into three wards, each with rural areas, small towns and parts of urban Bendigo. Each ward is represented by three councillors. They have responsibility for setting the strategic direction for the municipality, policy development, identifying service standards and monitoring performance across the organisation.
CURRENT COUNCILLORS
Eppalock Ward
Mayor Cr Margaret O’Rourke Cr George Flack Cr Yvonne Wrigglesworth T 4408 6692 M 0429 061 096 T 4408 6690 M 0429 083 993 T 4408 6694 M 0429 117 600 E [email protected] E [email protected] E [email protected] Date elected: October 22, 2016 Date elected: October 22, 2016 Date elected: October 22, 2016 Cr Margaret O’Rourke is an Cr George Flack was elected to Council Cr Yvonne Wrigglesworth lives in accomplished business woman with in 2016 and is a first-time councillor. Axedale and has more than 15 extensive leadership experience. He is a qualified accountant and years’ experience in health care She is a former manager of Telstra Certified Financial Planner with 45 management. Countrywide and is currently a Deputy years’ experience. Cr Wrigglesworth was inspired to Director at the Bendigo Kangan He is a Life Member of the following run for Council after she participated Institute and Director at Goulburn organisations: Marist Brass Band, in the Loddon Murray Community Murray Water and Bendigo Health Care Athletics Bendigo, Bendigo Athletic Leadership Program and learnt about Group. Club, Central Victoria District 15 the importance of equipping people Cr O’Rourke was elected to Council on Swimming Association, Bendigo Fire with the skills to identify and deliver the platform of developing a strong Brigade and CFA Victoria. initiatives that build and strengthen and prosperous future for Greater Cr Flack is passionate about athletics communities. Bendigo that encourages industry and continues to compete actively in She is particularly interested in the and job development. She also has a track and cross country events. He is areas of active transport, economic strong interest in supporting regional also a junior leader with the Bendigo development and tourism, and and rural communities. Fire Brigade and plays the trombone supporting rural communities. with the Marist Brass Band.
22 OUR COUNCIL
Lockwood Ward
Deputy Mayor Cr Rod Fyffe OAM Cr Jennifer Alden Cr Matt Emond T 4408 6688 M 0419 874 015 T 4408 6695 M 0499 005 735 T 4408 6696 M 0499 007 473 E [email protected] E [email protected] E [email protected] Date elected: first elected 1996 Date elected: October 22, 2016 Date elected: October 22, 2016 Cr Rod Fyffe has been a councillor Cr Jennifer Alden is a first-time Cr Matt Emond was elected to Council with the Greater Bendigo City Council councillor who has built a career in 2016. since 1996, when he was first elected specialising in health, environmental He grew up in Bendigo and trained as to represent the Fortuna Ward. Prior and social outcomes. a primary school teacher at La Trobe to amalgamation he was a member of She has a Doctorate of Public University. He then went on to obtain the City of Bendigo Council. Health and her interests include his Executive Master of Arts. He has served four terms as Mayor health and wellbeing, food security, and in 2013 was awarded an Order In recent years he has guided the diversity, inclusion and inequalities, development of key policies to of Australia for his services to Local sustainability and preventing violence Government. support the growth of Australia’s against women. creative industries. Cr Fyffe currently serves as a Cr Alden is Chair of the Bendigo Council representative on a range of Cr Emond is interested in the areas Regional Food Alliance, on the Board committees, including the Municipal of economic development, rural of Bendigo Foodshare and The Green Association of Victoria, Bendigo communities, community services, the Institute, and a is member of the Easter Festival and Goldfields Library environment and the arts. Public Health Association of Australia. Corporation.
Whipstick Ward
Cr Andrea Metcalf Cr James Williams Cr Julie Hoskin T 4408 6697 M 0499 009 096 T 4408 6698 M 0427 211 677 T 4408 6689 M 0499 011 432 E [email protected] E [email protected] E [email protected] Date elected: October 22, 2016 Date elected: first elected in 2012 Date elected: October 22, 2016 Cr Andrea Metcalf is excited to Cr James Williams was first elected to Cr Julie Hoskin has lived in Bendigo for represent the Whipstick Ward as a first- Council in 2012. Prior to amalgamation 53 years and is a former business owner time councillor. he was a councillor with the Shire of who has worked in a number of sectors She is a lifelong resident of Bendigo Huntly. including Local Government, hospitality, and has been a long-time observer of He is a retired farmer and has corporate security/major events and as Local Government and its practices completed the Diploma of Local an advocate for residents’ rights. and procedures, which inspired her to Government and is a graduate of the Cr Hoskin is focused on achieving run for Council. Institute of Company Directors. positive and meaningful engagement She is interested in the areas of waste Cr Williams’ areas of interest include with the community to facilitate the management and supporting rural advocating for improved road and rail best outcomes at a Council level for communities to achieve their long- infrastructure and support for rural residents and ratepayers. held goals. communities. Her interests include social justice, politics, building, planning, heritage preservation and more.
Councillor emails, like other correspondence, are the property of the City and may be referred to a staff member for action. As with any correspondence, if you would like emails to be kept private and confidential please place ‘private and confidential’ in the subject line.
Annual Report 2016/2017 23 RETIRING COUNCILLORS
Cr Elise Chapman Lockwood Ward Date elected: October 27, 2012
Cr Barry Lyons Lockwood Ward Date elected: first elected 2008
Cr Rod Campbell Eppalock Ward Date elected: first elected 2008
Cr Helen Leach Eppalock Ward Date elected: October 27, 2012
Cr Mark Weragoda Eppalock Ward Date elected: October 27, 2012
Cr Lisa Ruffell Whipstick Ward Date elected: first elected 2008
Cr Peter Cox Whipstick Ward Date elected: first elected 2008
24 OUR PEOPLE
OUR PEOPLE
Council appoints a Chief Executive Officer who is responsible for the day to day management of operations in accordance with the strategic directions of the Community Plan. The CEO and four directors make up the Executive Management Team.
Craig Niemann, CEO Vicky Mason, Director Health Craig Lloyd, Director Bachelor of Business (Local Government) and Wellbeing Presentation and Assets and a Master of Business Administration Master of Public Health, Master of Master of Project Management, Master Craig joined the City in October 2005. Business of Business Administration, Post Prior to joining the City, Craig was the Vicky has a strong health and Local Graduate Certificate in Community CEO of the Shire of Loddon (1997- Government background and joins Development 2005). the City from Mount Alexander Shire. Craig’s career has spanned the He has more than 30 years’ experience Her previous roles include Community emergency services sector, working working in the Local Government Development Director at Warrnambool for the Metropolitan Fire Brigade, sector. Craig has also served on the City Council, Health Development Unit Rural Ambulance Victoria, and other board of North Central Regional Assistant Director at the Department national and international emergency Goldfields Library for 10 years of Health, and Chief Executive Officer services. Before joining the City he and been a board member of the at the Darebin Community Health was the Executive Director Property Inglewood and District Health Service Service and Nillumbik Community and Assets at the Metropolitan Fire for more than 10 years. Health Service. Brigade, which saw him oversee asset planning and construction, project management, fleet management, equipment and resource management, and engineering and facilities management.
The units each Director is responsible Kerryn Ellis, Director Corporate Bernie O’Sullivan, Director for are provided on page 26 and a Performance Strategy and Growth description of the services provided by each unit is provided in the Our Bachelor of Arts, Master of Commerce, Bachelor of Agricultural Science, Master Performance section of this report Graduate Diploma of Public Policy and of Public Affairs (pages 30 – 65). Management Bernie has had extensive experience Kerryn is a passionate Local working for the Department of Government leader with extensive Environment, Land, Water and experience, who understands the Planning (and its predecessors) changing environment and external leading the Department’s state- pressures currently facing the sector. wide regional operations. Prior to Before joining the City, Kerryn was working for the Department, he held the Governance and Innovation senior executive roles with the Royal Manager at Knox City Council and Agricultural Society of New South has previously worked for the City of Wales, a livestock peak industry body Melbourne and Bayside City Council. in Canberra and the New South Wales Farmers’ Association.
Annual Report 2016/2017 25 ORGANISATION STRUCTURE
Chief Executive Officer Craig Niemann
Executive Services
Director, Health and Director, Strategy and Director, Presentation Director, Corporate Wellbeing Growth and Assets Performance Vicky Mason Bernie O’Sullivan Craig Lloyd Kerryn Ellis
Active and Engineering and Contract and Project Bendigo Art Gallery Healthy Communities Public Space Coordination
Building and Property Capital Venues and Major Projects Customer Support Services Events
Community Economic Parks and Natural Finance Partnerships Development Reserves
Information Community Services Major Events Waste Services Management
Environmental Health People and Statutory Planning Works and Local Laws Performance
Parking and Animal Rating and Valuation Strategy Control Services
Sustainable Environment
Tourism
26 OUR PEOPLE
CITY STAFF
A summary of the number of full time equivalent (FTE) staff by organisational structure and employment type
Corporate Health and Presentation Strategy and Executive Total Performance Wellbeing and Assets Growth Services
Full Time Female 35.00 62.00 17.00 34.00 7.00 155.00
Male 27.00 37.00 180.00 30.00 4.00 278.00
Part Time Female 15.11 87.12 1.20 17.72 0.40 121.55
Male 0.60 14.97 2.02 4.03 0.80 22.44
Temporary - Full time Female 7.00 13.00 8.00 5.00 1.00 34.00
Male 3.00 5.00 7.00 4.00 0.00 19.00
Temporary - Part time Female 3.24 8.74 0.00 4.46 0.60 17.04
Male 0.70 2.00 0.00 1.20 0.00 3.90
Casual Female 0.0010 1.0043 0.0001 0.0034 0.0000 1.0088
Male 0.0005 0.0018 0.0003 0.0021 0.0000 0.0047
Total 91.65 230.83 215.22 100.42 13.80 651.92
Number of staff (FTE)
125 Full time (180) Female Male 100 Part time Female Male 75 Temp full time Female Male 50 Temp part time Female Male 25 Casual Female
0 Corporate Health and Presentation and Strategy and Executive Services Performance Wellbeing Assets Growth
Annual Report 2016/2017 27 A summary of the number of full time equivalent (FTE) staff categorised by employment classification and graph below.
Female Male Total Number of staff according to band level Apprentices / Band 1 16.27 4.93 21.20 150 Band 2 26.81 15.86 42.67 Male 140 Female Band 3 33.00 109.72 142.73 120 Band 4 74.65 31.01 105.66 100 Band 5 53.96 42.20 96.16 Band 6 63.57 52.10 115.67 80 Band 7 21.08 18.80 39.88 60 Band 8 15.39 24.80 40.19 40
Registered / 13.76 13.76 20 Immunisation Nurse All 9.00 25.00 34.00 0 All Total 327.50 324.42 651.92 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Band 1 Registered/ Apprentices/
Immunisation Nurse EQUAL EMPLOYMENT OPPORTUNITY
Respecting each other at Organisational culture • Building a flexible organisation by providing opportunities for work The organisation values a diverse and flexible work arrangements that The City is an equal opportunity skilled workforce and is committed accommodate different career and employer and is committed to to maintaining an inclusive and life stages through the Enterprise providing a safe and supportive collaborative workplace culture. The Agreement work environment that is free City does this by: • Creating an equitable environment from discrimination, harassment, • Implementing the Reconciliation that encourages open, two- victimisation and bullying, and where Action Plan and Cultural Diversity way communication between all individuals associated with the and Inclusion Plan staff about responsibilities, organisation treat each other with • Updating recruitment and selection performance, feedback and career respect. documentation to encourage planning, including training in how applications from Aboriginal and to conduct effective performance The organisation outlines expected Torres Strait Islander employees, conversations and resilience and standards of behaviour and why these and people with a disability emotional intelligence standards are important. Staff receive • Job vacancies are actively The City continues to build upon the training on a three year cycle on promoted with Bendigo District organisational culture survey results acceptable workplace behaviour, with Aboriginal Cooperative of March 2015. This has been done by 310 employees receiving training. • Maintaining a safe and inclusive aligning key priorities with staff values working environment through the and behaviours, an increased focus on customer service and corporate The organisation also has a network of delivery of all staff training and targeted Working Safely training planning and reporting, and a range trained Contact Officers who provide of long term strategies related to employees with impartial support sessions, including First Aid/CPR, Asbestos Awareness, Fire Wardens, leadership, workforce development, regarding inappropriate workplace and workplace health and wellbeing. behaviour and equal opportunity. Health and Safety Representatives Confidential and appropriate support refreshers and Organisational Injury and assistance is also available to and Illness (Management and Early employees who are victims of family Intervention) violence. Several Contact Officers have • Supporting employees’ cultural also attended targeted training, which obligations through the inclusion of enables a higher level of appropriate employment provisions within our support and/or referral to be provided Enterprise Agreement to employees.
28 OUR PEOPLE
OTHER STAFF MATTERS
Values and behaviours Professional development Reward and recognition The City aspires to be a values-driven The City provides professional The City is committed to recognising organisation, working together to be development opportunities through and rewarding the work performance the best we can be for our community. the provision of a comprehensive and behaviours of employees who The City’s values are: We Lead, We corporate learning program, specialist reflect, support or contribute to our Learn, We Care, We Contribute, We conferences, seminars, and training vision and our values and behaviours Respond, We Respect. We continue to and study support. through our Reward and Recognition work towards integrating our values program. and behaviours into our day-to-day work and service provision to the • Recognition of years of service community. Employees are recognised for their service at the City after 10 years of continuous completed service and every five years thereafter. Employees with 20 years of service or more are recognised at an annual function. OUR VALUES AND BEHAVIOURS • Staff awards Working together to be the best we can for our An annual function is held to community recognise outstanding performance 1. We have a clear vision and understand our purpose in the following categories; Go To 2. We encourage each other to be the best we can Person Award, Delivering Quality 3. We listen and think things through Service Award, Lead By Example 4. We work together to make a difference in our community Award, Respecting Each Other Award, Quiet Achiever Award and Supporting Diversity and Inclusion 1. We talk to each other and share information and knowledge Award. 2. We nurture ideas, creativity and innovation • Culture Champion recognition 3. We use feedback to improve our performance The Culture Champion program 4. We work together to continuously improve what we do provides recognition for an employee’s performance, 1. We plan and deliver quality programs, projects and services contribution, achievements or 2. We help each other to make informed decisions and take demonstration of the City’s values action and behaviours in a less formal way. 3. We make the best use of our resources Employees are presented with a 4. We work together as a team certificate at a function appropriate to their work unit. 1. We support each other 2. We recognise contribution, performance and achievement 3. We take responsibility for our actions 4. We work together to create a safe and healthy workplace
1. We get to know our customers and understand their needs 2. We do what we say we will do 3. We follow our policies and procedures 4. We work together to provide great service
1. We are friendly, professional and treat each other with courtesy 2. We recognise and value diverse backgrounds and perspectives 3. We gain the trust of others by acting fairly and with integrity 4. We work together to create and maintain a positive culture
Annual Report 2016/2017 29 OUR PERFORMANCE
PLANNING AND ACCOUNTABILITY FRAMEWORK
The Planning and Accountability • A strategic resource plan for a planning and reporting documents Framework is found in Part 6 of the period of at least four years and that make up the planning and Local Government Act 1989 (the Act). include this in the Council Plan accountability framework for the The Act requires councils to prepare • A budget for each financial year City. It also shows that there are the following planning and reporting opportunities for community and documents: • An annual report in respect of each stakeholder input and feedback financial year • A Council Plan within six months at each stage of the planning and after each general election or by The following diagram shows the reporting cycle. June 30, whichever is later relationships between the key
Integrated Corporate Planning Framework
Community Adopted strategies, Research and Government policy input policies and plans evidence and regulations
LEGISLATED PLANS
Municipal Public Health Community Plan Municipal Strategic Statement and Wellbeing Plan (Council Plan) (Legal Land Use Framework)
Annual plan and Resource and unit budget planning
Annual Report
30 OUR PERFORMANCE
COUNCIL PLAN 1. Leadership 1. Council demonstrates leadership in its decisions to and good meet future needs and challenges The Council Plan 2013-2017 includes governance 2. Long term planning and prudent financial five themes, which comprise the main management ensure financial sustainability goal areas for Council. Each theme has a series of strategic objectives 3. Lobbying and advocacy about agreed priorities and strategies for achieving these in place Greater Bendigo at the forefront of policy and the four-year period. The strategies funding considerations have actions that reflect the budget 4. Community members are supported to take an allocations and new initiatives for the active part in democratic engagement 2016/2017 year. 5. Continuous improvement methods are used to The five themes and strategic ensure the standard of service delivery is excellent objectives as detailed in the Council 6. Long-term planning and staff capacity building help Plan are show in the table on the right. to develop a resilient organisation In June 2017, Council adopted its new Community Plan 2017-2021, which is 2. Planning for 1. Greater Bendigo plans for the needs of our growing available on the City’s website growth population through the preparation of long-term www.bendigo.vic.gov.au strategies and the development of 'major new assets' and supporting infrastructure 2. Greater Bendigo residents, businesses and PERFORMANCE communities are connected with accessible transport options Council’s performance for the 3. Planning ensures residents have access to diverse, 2016/2017 year has been reported affordable and sustainable housing choices according to each theme in the 4. Effective telecommunication options connect Council Plan. Performance has been businesses and community members measured as follows: • The updated report for the City's 3. Presentation 1. High quality public space infrastructure, programs Liveability Indicators (2016). The and vibrancy and services are planned and delivered that support Liveability Indicators are also used the City to be Australia’s most liveable regional city as the strategic indicators 2. Diverse sporting, recreational and artistic • Progress in relation to major experiences are offered for residents and visitors initiatives identified in the Budget 3. Activities, groups and networks enable people to be • Results against the actions in the connected and feel welcome 2016/2017 Council Plan 4. Greater Bendigo is a child friendly city where people report improved health and wellbeing and they can • Services funded in the Budget feel safe and persons or sections of the community who benefit from these 5. Greater Bendigo is a drawcard for visitors services • Results against the prescribed 4. Productivity 1. Greater Bendigo has a vibrant and diverse economy service performance indicators that grows jobs and enables good living standards and measures (Local Government 2. Bendigo is a centre for innovation and creativity that Performance Reporting Framework) helps build economic sustainability 3. Educational diversity and support for lifelong learning is fostered
5. Sustainability 1. The built and natural qualities that make Greater Bendigo an attractive and appealing place are valued and conserved 2. Council demonstrates leadership in reducing our environmental footprint 3. We help to build community resilience for managing the impacts of climate change 4. Council manages its resources, assets and infrastructure for the long term
Annual Report 2016/2017 31 THEME 1: LEADERSHIP AND GOOD GOVERNANCE
Strategic indicators The following statement reviews the performance of Council against the strategic indicators (Liveability Indicators).
Strategic indicator/measure 2016/2017 Comments result
Community satisfaction with 55 This result is six points higher than the 2015/2016 year. lobbying to other levels of government on behalf of the community.
The percentage of agreed major 92% Construction commenced on both the Garden for the Future initiatives completed in agreed at the Bendigo Botanic Gardens, White Hills and the Greater timeframes. (Internal measure aim Bendigo Indoor Aquatic and Wellbeing Centre. for >90%)
Increase the proportion of 7% (ABS 2011) The proportion of Greater Bendigo residents born overseas residents born overseas. remains much lower than the national average.
Increase proportion of the 49.6% Greater Bendigo scores well with volunteering when compared population who volunteer for a (Community with similar municipalities in Victoria. community group or activity more Indicators Vic) than once per month.
Increase in municipal-wide average 983 (ABS 2011) Greater Bendigo's score is similar to other Victorian rural SEIFA index of disadvantage. centres. However, there is considerable variation in scores within the municipality.
Increase the proportion of people 38% People are more likely to take the quickest option to have their taking part in a public discussion. say – sign a petition. (Liveability Indicator). Measure: ‘In the last 12 months have you: i. attended a community meeting, public hearing or discussion? ii. Participated in an online discussion about political or local community issues?’
Improved community satisfaction 54 The City’s score is the same as the average for regional centres with community consultation and and just below the state average. engagement.
Maintain or improve community 56 This is an improvement on last year’s score, however it is still satisfaction rating for overall just below the state-wide and regional centre averages. performance generally of the Council.
Satisfaction with council decision- 52 This is the same as the average for regional centres but below making in the interest of the the state-wide average. community.
32 OUR PERFORMANCE
Major initiatives The following statement reviews the progress of Council against major initiatives identified in the 2016/2017 Budget.
• Citizens Jury to inform the development of the 2017-2021 Council Plan ($58,000) - complete
Council Plan objectives and actions The following statement reviews Council’s performance against its 2016/2017 actions from the Council Plan.
1.1 Good governance principles are used to guide strategic decision-making
Council Plan action Progress Comments
Provide high level strategic advice to Council to Completed Council was provided with comprehensive enable it to meet its legislative responsibilities. advice in order to meets the legislative requirements of a new council, including adopting the Community Plan 2017-2021 and 2017/2018 budget.
Meet Local Government legislative Completed An audit of current Council practices against requirements and support councillors in their the good governance charter was completed role using Good Governance principles. and a range of improvements implemented, and all legislative requirements for the year were met.
Complete planning for the 2016 Council Completed Council planned appropriately for the 2016 elections and the induction and training of election and completed councillor induction councillors following the election. and training.
1.2 Maintain strong and positive relationships with the Federal and State Governments and relevant departments and agencies, and advocate to ensure that the required infrastructure, key projects, policies and services are in place as our community grows
Council Plan action Progress Comments
Take a lead role in the Regional Partnership Completed The City is very involved with Regional Cities Forum and Regional Cities Victoria to benefit Victoria and is working to develop liveability the region and the City, including regional indicators for the regional cities. A submission action on water security. was made to the State Government’s Regional and Rural Committee highlighting feedback from the Loddon Campaspe Regional Assembly.
Meet regularly with relevant Members of Completed The Mayor and CEO attended the National Parliament and advocate for funding for General Assembly of Local Government in required infrastructure, key projects and Canberra and met with a number of Members services that bring improved outcomes for our of Parliament to discuss key projects. growing and liveable municipality.
Annual Report 2016/2017 33 1.3 Contribute to policy and strategy development being led by government and other agencies
Council Plan action Progress Comments
Review the impact of rate capping on the Completed Advocacy activities to the State Government City’s long term financial sustainability and are continuing, most recently through community aspirations for services and participation in the Fair Go Rates System facilities and use this to inform future advocacy technical working group. activities to the State Government for the best outcome for our community.
Respond to any discussion papers, draft Completed Council responded to the Local Government Bills and proposed changes to the Local Act Review Directions Paper and inquiry Government Act 1989 within required into the Sustainability of Victoria’s Rural and deadlines. Regional Councils.
1.4 Continue to improve Council’s communications and engagement practices to support open and inclusive decision making and reach diverse audiences
Council Plan action Progress Comments
Implement the Community Engagement Completed Training sessions with staff have been held Framework to guide engagement and the framework is used by staff across the opportunities, timetables and feedback organisation. throughout strategy and policy development and service reviews.
Provide seamless and consistent information Completed The Communications Unit uses both to the community about Council’s policies and traditional (print, radio and television) and processes. digital methods (social media, e-newsletter, online publications) to reach residents.
Use more innovative approaches and new Completed The City uses an e-newsletter, YouTube technologies to inform and engage the and social media to inform and engage the community. community.
1.5 Greater Bendigo residents receive responsive, accessible and inclusive customer services
Council Plan action Progress Comments
Implement actions set out in the Information Completed The Information Technology Strategy was Technology Digital Strategy to meet increased endorsed in July 2016 and implementation is and changing service requirements. now underway.
Continue to implement the Customer Service Completed Results from two customer satisfaction Charter and improve satisfaction with customer projects conducted by external entities service and responsiveness. confirmed that the City performs highly in customer service.
34 OUR PERFORMANCE
1.6 Programs, projects and services are guided by best practice principles and delivered to respond to community needs
Council Plan action Progress Comments
Develop a Project Management Office Centre Completed The role of project management was of Excellence (methods, processes, tools, considered as part of the restructure and a templates etc.) in line with Project Management dedicated Project Management Office was Office best practice principles. established to lead excellence in this area across Council.
Undertake a program of service reviews to Completed The service review program progressed well in ensure services provided by the organisation 2016/2017, and continues to be developed and are efficient and matched to community refined. priorities.
Implement continuous improvement strategies Completed Improvements have been made on incident in the Works area in accordance with best reporting, site inspections, maintenance of practice guidelines. plant and equipment, and purchasing.
Deliver the budgeted works program, both Completed Capital and maintenance works are being capital and maintenance, and enhance delivered according to the annual plan. A new planning for the future with relevant skills apprentice started in January 2017 to support development. career pathways.
1.7 The organisation has the right people who succeed in delivering the best outcomes
Council Plan action Progress Comments
Implement a Performance Management Completed The Performance Evaluation System has been Framework, Change Management Plan and implemented and was used for 2016/2017 an information technology software system performance and development plans. that is capable of facilitating performance management for all levels of the organisation.
Implement the recommendations arising Completed Results from the work done on Safety Culture from the Safety Culture Review to continue to have been incorporated into the broader strengthen the organisation’s commitment to Organisational Culture Plan. staff safety.
Annual Report 2016/2017 35 1.8 Sustain the long term financial viability of the Council
Council Plan action Progress Comments
Further develop the 10-year Long Term Completed Council's Long Term Financial Plan reflects Financial Plan incorporating the ongoing Council's decision to develop the 2017/2018 changes to Victorian Legislation and Council Budget within the State Government’s 2% rate decisions with regards to rate capping. cap, with future modelling also reflecting the rate cap.
Thoroughly evaluate the potential long Completed All proposed shifts of responsibility between term impacts of any shift of responsibility State and Local Government were monitored or reduction in funding from the State and advocacy conducted on relevant matters. Government, before agreeing to continue to One example included Council’s advocacy on fund service delivery, fund new services or take the proposal to shift responsibility for land over responsibility for assets. valuations away from Local Government, potentially adding to Local Government costs and reducing valuation quality.
Advocate to maintain the long term Local Completed Council continues to provide advocacy in this Government position that the management area. of groundwater and levee banks are a State Government responsibility.
1.9 Enhance the capability and capacity of the City to meet its obligations in the management of emergencies
Council Plan action Progress Comments
Develop community engagement strategies Completed The City provided support for community with a focus on emergency management planning groups to undertake aspects of and the development of a stronger and more community emergency planning, including risk resilient community. assessment.
Ensure the emergency management Completed A service review of the City’s Emergency arrangements for the City are aligned with Management service has been completed. Emergency Management Victoria policies and procedures, and implement the Cluster Municipal Emergency Management Plan in partnership with surrounding municipalities.
36 OUR PERFORMANCE
Services The following statement provides information in relation to the services funded in the 2016/2017 Budget and the persons or sections of the community who are provided the service.
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Executive The Executive Services unit provides support to the Chief Executive Officer, Mayor (3,937) Services and councillors; including authoritative advice on civic administration, governance (3,625) and legislative compliance, and comprehensive monitoring and implementation (312) of Council resolutions. The Executive Services unit includes the Communications team, which is responsible for high quality online, printed, radio and television communication.
Corporate The Corporate Performance Directorate contributes to the executive management (684) Performance of the City and contributes to the good governance of the Goldfields Library (413) Corporation, the Bendigo Regional Archives Centre and the Bendigo Stadium (271) Finance Committee by representing the City on these bodies.
Library The Goldfields Library Corporation, of which the City is one of four member (3,101) Services Councils, provides a public library service at four sites throughout the municipality (3,083) in Bendigo, Kangaroo Flat, Eaglehawk and Heathcote, and provides print and (18) digital resources to the community in a variety of formats including collection services, e-services, research tools and interactive learning programs.
Rating and The Rating and Valuation Services unit provides statutory valuations for rating (1,611) Valuation purposes, provides asset and insurance valuations and maintains the integrity (1,781) Services and currency of the land information database. The unit also annually levies and 170 collects rates and charges, maintains the corporate property database, maintains the central name register of ratepayers and prepares voters rolls.
People and The People and Performance unit focuses on strengthening corporate resilience (1,765) Performance and aligning the organisation’s people, culture, services and performance to the (1,662) Council Plan. (103)
Information The Information Management unit is responsible for providing, developing and (151) Management maintaining corporate information and communications technology systems (281) and continually improving business processes. The unit also manages records, 130 Ombudsman requests and privacy matters.
Contract The Contract and Project Coordination unit provides the organisation with (650) and Project centralised tendering and contracts processes. (749) Coordination 99
Customer The Customer Support unit provides the first point of contact for our customers. (925) Support The unit also manages events and activities in the CBD on behalf of the City and (1,034) delivers information and cashiering services at service centres at Lyttleton Terrace, 109 Bendigo and High Street, Heathcote.
Annual Report 2016/2017 37 Performance indicators The following statement provides the results of the prescribed service performance indicators and measures including explanation of material variations.
Service/indicator/measure Results Material variations 2015 2016 2017
Governance
Transparency 4.00% 4.69% 3.23% Council had less decisions Council decisions made at meetings closed to the made in meetings closed public to the public than the 2015/2016 reporting year. [Number of Council resolutions made at ordinary or special meetings of Council, or at meetings of a special committee consisting only of councillors, closed to the public / Number of Council resolutions made at ordinary or special meetings of Council or at meetings of a special committee consisting only of councillors] x100
Consultation and engagement 52 53 54 Satisfaction with community consultation and engagement Community satisfaction rating out of 100 with how Council has performed on community consultation and engagement
Attendance 95.91% 93.21% 95.56% Councillor attendance at council meetings [The sum of the number of councillors who attended each ordinary and special Council meeting / (Number of ordinary and special Council meetings) × (Number of councillors elected at the last Council general election)] x100
Service cost $76,118 $43,983 $60,105 Councillor allocations are Cost of governance higher in 2016/2017. [Direct cost of the governance service / Number of councillors elected at the last Council general election]
Satisfaction 51 51 52 Satisfaction with Council decisions [Community satisfaction rating out of 100 with how Council has performed in making decisions in the interest of the community]
38 OUR PERFORMANCE
Service/indicator/measure Results Material variations 2015 2016 2017
Libraries
Utilisation 4.13 4.61 5.57 Library collection usage [Number of library collection item loans / Number of library collection items]
Resource standard 64.78% 55.02% 70.30% Standard of library collection [Number of library collection items purchased in the last five years / Number of library collection items] x100
Service cost $4.47 $3.96 $4.05 Cost of library service [Direct cost of the library service / Number of visits]
Participation 16.69% 15.67% 14.82% Active library members [Number of active library members / Municipal population] x100
Annual Report 2016/2017 39 THEME 2: PLANNING FOR GROWTH
Strategic indicators The following statement reviews the performance of Council against the strategic indicators (Liveability Indicators).
Strategic indicator/measure 2016/2017 result Comments
Increase the proportion of people 66.3% Bendigo’s result is higher than the who walk or cycle five times a week (2011/2012) State average of 63.9%. for at least 30 minutes.
Increase opportunities for people to 5.3% of people walk, cycle or take This is despite the 2015 Greater use public transport. public transport to work Bendigo Wellbeing Survey showing that 49% of respondents lived within a 10 minute walk of a bus stop.
Increase medium-density housing. 11.54% of housing in Greater Bendigo The proportion of townhouses, flats, is medium density units and apartments is decreasing despite 50% of Bendigo households having just one or two people.
Major initiatives The following statement reviews the progress of Council against major initiatives identified in the 2016/2017 Budget.
• Construction of the social pavilion at Canterbury Park, Eaglehawk ($350,000) – complete • Commence construction of the Greater Bendigo Indoor Aquatic and Wellbeing Centre, Kangaroo Flat ($10.3M) - complete • Commence construction of the Garden for the Future at Bendigo Botanic Gardens, White Hills ($2.4M) – complete • Construction of the Bendigo Airport Runway ($3.7M) – complete • Construction of the Barrack Reserve Pavilion, Heathcote ($1.6M) – in progress
40 OUR PERFORMANCE
Council Plan objectives and actions The following statement reviews Council’s performance against its 2016/2017 actions from the Council Plan.
2.1 To maintain the unique character of Greater Bendigo, Council delivers major projects that accommodate the growing population and diversifies the economy
Council Plan action Progress Comments
Complete the Greater Bendigo Indoor Aquatic In progress Construction is approximately 50% complete. and Wellbeing Centre in Kangaroo Flat.
Continue development of the Bendigo Botanic In progress Works commenced in April 2017 and are to be Gardens Garden for the Future project, including completed by December 2017. completion of the Visitor Hub design.
Complete the expansion and upgrade of the Completed Construction of stage two has been completed Bendigo Airport Stage two, and continue and stage three expression of interest funding planning and attraction of funding to progress application lodged with Regional Development Stage three, the Business Park. Victoria.
Soldiers’ Memorial Institute revitalisation Completed Required funding for the project has been project, Pall Mall: Advocate for State and obtained and works commenced in May 2017. Federal funding support so construction can commence.
Complete the design for the Strathfieldsaye Completed Construction is approximately 60% complete. Community Hub.
Complete the expansion of the Bendigo In progress The overall project is on schedule. Stadium.
Progress reconstruction works at the Bendigo In progress International Tennis Federation courts are Tennis Centre in partnership with the Bendigo complete. Pavillion and car park construction Tennis Association and continue advocacy for is underway. additional external funding.
Promote opportunities for and the benefits of In progress This is being done through Plan Greater CBD living in Bendigo. Bendigo and as part of the Housing Strategy.
Work with Marist College Bendigo to deliver a Completed Official opening was held on March 23, 2017. range of facilities to be shared by the school and local community.
Continue implementation of the Rosalind Park In progress Detailed design of former Municipal Baths Recreation Reserve Precinct Master Plan by has been included in the 2017/2018 Council undertaking works for the redevelopment of Budget. the former Municipal Baths.
Progress implementation of the Barrack In progress Construction of pavilion redevelopment almost Reserve Master Plan by completing complete. Design of pool solar extension is construction of the stadium, including completed. undertaking landscape planning for the swimming pool solar extension project.
Continue planning and attraction of funding In progress Collaboration with the State Government to to progress the Marong Business Park in progress this project is ongoing. The planning conjunction with the State Government. approvals are expected to be finalised by the end of 2017.
Annual Report 2016/2017 41 2.2 Council manages the planning and development of the City through the preparation of major strategies and effective amendments to the planning scheme
Council Plan action Progress Comments
Complete and implement the following In progress • Commercial Land and Activity Centre major strategies through planning scheme Strategy planning scheme amendment has amendments: been adopted by Council - Commercial Land and Activity Centre • Maiden Gully Precinct Structure Plan and Strategy Development Contributions Plan will be - Maiden Gully Precinct Structure Plan, presented to Council later in 2017 including a Development Contributions • Intensive Animals Industries is on hold Plan • Draft Housing Strategy Implementation Plan - Intensive Animal Industries approved for exhibition by Council in June - Housing Strategy • The ITLUS amendment has now been - Connecting Greater Bendigo: Integrated implemented through the planning scheme Transport and Land Use Strategy (ITLUS)
Commence and significantly progress the La In progress • University Precinct Plan deferred pending Trobe University Precinct Plan and Structure resolution of the subdivision of the Osborne Plans for the Heathcote, Goornong, Redesdale Street site and Marong townships. • Marong Precinct Project - first draft Structure Plan completed • Heathcote project underway • Goornong proposed to start late 2017 • Redesdale proposed to commence 2018
Complete Urban Design Frameworks for In progress The Strathfieldsaye Urban Design framework Maiden Gully and Strathfieldsaye main streets. was adopted in March 2017.
Complete the St John of God Hospital Precinct In progress Eaglehawk Railway Station draft completed Master Plan and the Eaglehawk Railway Station and agreed to by Public Transport Victoria. The Precinct Master Plan in collaboration with St John of God Master Plan will be linked to the relevant partners. Housing Strategy Implementation Plan, and the development of a Golden Square Precinct Redevelopment Plan.
42 OUR PERFORMANCE
2.3 Sustainable transport options are supported in the Connecting Greater Bendigo: Integrated Transport and Land Use Strategy (ITLUS)
Council Plan action Progress Comments
Complete further works to consolidate regional In progress • Spring Gully path works completed, apart cycle and pedestrian linkages, including design from McIvor Highway underpass. and construction of improved shared networks • Review of Walking and Cycling Strategy to access commercial, recreational and commenced. community services.
Complete investigations into the relative In progress Consultants expected to be appointed in merits of completing the Bendigo Creek August/September 2017. Linear Cycle Path through the Bendigo city centre via Hargreaves Street and/or Bendigo Creek and commence implementation of the recommendations.
Implement the joint VicRoads and Council In progress Project has stalled due to lack of VicRoads' SmartRoads framework and principles for resources including staff changes at the urban Bendigo. VicRoads Regional Office.
Increase footpath maintenance in accordance Completed Regular meetings held with inspectors to with the Road Management Plan. improve work efficiencies and contractor performance has been well managed.
Complete ‘transport hub and urban renewal In progress Bendigo and Eaglehawk plans have been implementation plans’ for Bendigo, Eaglehawk, completed. Epsom and Kangaroo Flat railway stations and surrounding precincts.
Continue to implement ITLUS through Completed In March, Council adopted a program of a program of community engagement, community engagement and a governance targeted infrastructure and recommended structure. developments, with a particular focus on healthy active travel and travel behaviour change.
Work with VicRoads to ensure the outcome for Completed Involvement in community consultation improvements to Napier Street, White Hills is forums, community consultation group and consistent with ITLUS. direct meetings with VicRoads.
Complete the Greater Bendigo Freight Study in In progress Survey of freight operators completed. Draft collaboration with the State Government. report expected to be completed by late August 2017.
2.4 Increase access to IT communications options for residents and visitors
Council Plan action Progress Comments
Prepare a Greater Bendigo Digital Strategy to In progress Fixed line NBN connections are now available take advantage of the NBN. to 27,000 premises in Greater Bendigo.
Annual Report 2016/2017 43 2.5 Housing options provide broader choice in order to meet current and future community expectations and needs
Council Plan action Progress Comments
Complete a Housing Strategy that implements Completed Council adopted the Strategy in August 2016. the Greater Bendigo Residential Development Strategy and provides a framework to meet the needs of ‘housing for all’ with respect to diversity and accessibility.
Services The following statement provides information in relation to the services funded in the 2016/2017 Budget and the persons or sections of the community who are provided the service.
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Statutory The Statutory Planning unit facilitates planning and delivery of timely and quality (1,633) Planning planning decisions, provides a heritage advisory and heritage architecture service (2,678) and implements Planning Scheme Amendments, including the Bendigo Urban 1,044 Flood Study and the Marong Business Park.
Strategy The Strategy unit facilitates, coordinates and develops strategies, plans and (1,796) advice that provide direction and guidance for Council to make decisions and (1,967) implement projects, Planning Scheme provisions, land use change, social and 172 community development, health and wellbeing, integrated transport and heritage management for the municipality.
Major Projects The Major Projects unit focusses on major projects that involve significant funding (769) from external sources, requiring significant stakeholder engagement and require (769) detailed planning, design and delivery, including the Greater Bendigo Indoor (0) Aquatic and Wellbeing Centre, the Bendigo Stadium expansion and the Bendigo Airport.
Performance indicators The following statement provides the results of the prescribed service performance indicators and measures including explanation of material variations.
Service/indicator/measure Results Material variations 2015 2016 2017
Aquatic Facilities
Service standard 2.23 2.54 2 There are two health Health inspections of aquatic facilities inspections per facility planned per season. [Number of authorised officer inspections of Council aquatic facilities / Number of Council aquatic facilities]
44 OUR PERFORMANCE
Service/indicator/measure Results Material variations 2015 2016 2017
Aquatic facilities (continued)
Health and safety 0 1 1 Reportable safety incidents at aquatic facilities [Number of WorkSafe reportable aquatic facility safety incidents]
Service cost $0.00 $0.00 $0.00 This facility is leased. Cost of indoor aquatic facilities [Direct cost of indoor aquatic facilities less income received / Number of visits to indoor aquatic facilities]
Service cost $6.63 $5.95 $6.90 Increase in pool Cost of outdoor aquatic facilities maintenance across all of the City's aquatic facilities. [Direct cost of outdoor aquatic facilities less income received / Number of visits to outdoor aquatic facilities]
Utilisation 1.66 1.68 1.72 The utilisation of aquatic Utilisation of aquatic facilities centres has had no material variations from year to [Number of visits to aquatic facilities / Municipal year. In previous years the population] attendance of the Indoor Aquatic Facility has also been included in this calculation. However as the facility is leased and not controlled by the City, this has now been removed from the calculation for the current and prior year results.
Roads
Satisfaction of use 43.75 39.71 48.76 Sealed local road requests [Number of sealed local road requests / Kilometres of sealed local roads ] x100
Condition 99.47% 99.80% 99.66% Sealed local roads below the intervention level [Number of kilometres of sealed local roads below the renewal intervention level set by Council / Kilometres of sealed local roads] x100
Annual Report 2016/2017 45 Service/indicator/measure Results Material variations 2015 2016 2017
Roads (continued)
Service cost $83.55 $99.17 $37.04 More square metres of Cost of sealed local road reconstruction roads were reconstructed in 2016/2017 compared to [Direct cost of sealed local road reconstruction 2015/2016. / Square metres of sealed local roads reconstructed]
Service cost $6.02 $4.46 $5.32 More works completed this Cost of sealed local road resealing financial year. [Direct cost of sealed local road resealing / Square metres of sealed local roads resealed]
Satisfaction 61 56 59 Satisfaction with sealed local roads [Community satisfaction rating out of 100 with how council has performed on the condition of sealed local roads]
Statutory planning
Timeliness 49.88 52.40 48.10 Time taken to decide planning applications days days days [The median number of days between receipt of a planning application and a decision on the application]
Service standard 76.88% 76.60% 72.80% From July 1, 2016 this Planning applications decided within 60 days indicator will be updated to include VicSmart planning [Number of planning application decisions made applications, which should within 60 days / Number of planning application be assessed within 10 days. decisions made] x100 This may result in some variances year on year.
Service cost $2,026 $2,586 $2,684 Cost of statutory planning service [Direct cost of the statutory planning service / Number of planning applications received]
Decision making 76.47% 83.33% 62.50% There were four less cases Council planning decisions upheld at VCAT referred to VCAT in the 2016/2017 reporting period [Number of VCAT decisions that did not set (2015/2016: 12 cases). aside Council's decision in relation to a planning Due to the small number application / Number of VCAT decisions in of cases, the variation relation to planning applications] x100 percentage is higher year on year.
46 OUR PERFORMANCE
THEME 3: PRESENTATION AND VIBRANCY
Strategic indicators The following statement reviews the performance of Council against the strategic indicators (Liveability Indicators).
Strategic indicator/measure 2016/2017 result Comments
Fairer access to parks or open spaces More than 75% of people reported The 2015 Greater Bendigo Wellbeing close to where people live. using open spaces at least once in the Survey showed that paths, facilities last year such as toilets and seats, and trees are the most important items for open spaces.
Maintain child immunisation 94.45% of children are immunised at The significant improvement completion rates to be better 60-63 months compared to recent years is a result of than the state average. (Bendigo targeted local interventions. population=93.9%; Indigenous persons=50%)
Reduce obesity. 56.9% of people in Greater Bendigo Bendigo’s score is worse than all other are overweight or obese (DHHS) regional centres and the state as a whole (48.6%).
Increase the proportion of people 53.4% do not meet either fruit or Respondents living in Long Gully, who meet recommended fruit and vegetable guidelines West Bendigo, Ironbark and Huntly vegetable dietary guidelines. reported the lowest proportions meeting recommendations.
Increase social connection. 61.9% agree they live in a close knit This is a slightly different indicator community (VicHealth) than has been used in previous years, in order to provide the most up to date data .
Improved community satisfaction N/A Not surveyed in 2017. rating for the appearance of public areas.
Community satisfaction with N/A Not surveyed in 2017. community and cultural activities.
Major initiatives The following statement reviews the progress of Council against major initiatives identified in the 2016/2017 Budget.
• Proactive tree maintenance program ($280,000) - complete
Annual Report 2016/2017 47 Council Plan objectives and actions The following statement reviews Council’s performance against its 2016/2017 actions from the Council Plan.
3.1 Greater Bendigo has attractive and accessible parks, public places and streetscapes that are widely used and enable people to be healthy and active
Council Plan action Progress Comments
Complete the Greater Bendigo Public Space In progress The development of a 50-year conceptual Plan in partnership with the Community public space vision was reported to Council in Wellbeing and Presentation and Assets April. Directorates and commence implementation.
Implement community strategies, policies In progress Ironbark Gully Master Plan has been developed and projects that support active healthy living, for public release. including continuing to apply the results of the Active Living Census.
Deliver high quality services and upgrades Completed Maintenance activities are being delivered to parks, natural reserves and streetscapes in accordance with the Parks and Natural that ensure they meet liveability, accessibility Reserves Service Delivery Plan. Capital and legislative requirements as our City improvements to parks are continuing. grows, including implementing Council’s Tree Management Strategy and upgrading sportsfields, play spaces and furniture.
Continue improvements to irrigation systems In progress Irrigation improvements to Weeroona Oval and water management processes in parks and have been completed. Works at Upper natural reserves. Rosalind Park have commenced.
Support the activation and use of public spaces Completed A large number of events have been facilitated in the Bendigo CBD for social connections and including school holiday fun days, Youth Expo, events. Moonlight Markets and FunLoong's birthday.
Negotiate with La Trobe University to In progress The City has formally approached La Trobe finalise the long term future for ownership, University seeking to purchase this property as management and upgrade of the athletics per the Council resolution. track.
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3.2 Residents and visitors are able to access good quality sports and recreational leisure facilities that are fit for purpose and enable them to celebrate their active, artistic, cultural, sporting and social lives
Council Plan action Progress Comments
In partnership with relevant organisations, Completed A range of cultural events including the encourage and support artistic and creative Bendigo Writers Festival and Bendigo endeavours and increase community participation International Festival of Exploratory Music in these. were successfully staffed and there was significant activity at all venues.
Significantly advance construction of the In progress Detailed design of Eaglehawk Regional Eaglehawk Regional Play Space at Canterbury Park Play Space underway. Strathdale District and continue the program of play space upgrades Play Space Stage two has been completed. across the municipality.
Ensure high quality presentation and cleanliness of Completed Street sweeping and litter collection has streets and public spaces. continued according to the agreed program.
Work with the Bendigo Chinese Association to Completed A feasibility study and business case for facilitate a sustainable future for the Golden Dragon a redevelopment of the Golden Dragon Museum by finalising the business redevelopment Museum site has been completed and plans and implementing priority actions, including submitted to Regional Development the design, funding and construction timelines for Victoria. the Chinese gateway project.
3.3 Greater Bendigo is a community that values its heritage, art facilities and major events, supports arts and cultural experiences
Council Plan action Progress Comments
Foster local artistic talent and increase participation Completed The Gallery hosts an annual exhibition in the arts in suburban and rural locations, and titled 'Going Solo', which features an explore options for an exhibition space for local artist from the central Victorian region. artists at the Bendigo Art Gallery. The Gallery also offers local artists the opportunity to enter the Paul Guest Drawing Prize.
Attract, retain and develop major events that deliver Completed Strategic efforts have managed to grow substantial economic, promotional and social the number of annual events to over 90, benefits for Greater Bendigo. up from approximately 20 only five years ago.
Continue to offer world class exhibitions at the Completed The Gallery continues to offer world class Bendigo Art Gallery. exhibitions.
Ensure the ongoing profile and diversity of Completed Capital Venues and Events manage the performing arts and entertainment events across the ongoing delivery of Engine Room small municipality. towns tours.
Work closely with Bendigo Heritage Attractions In progress The City maintains regular contact with (Bendigo Trust) to assist, advise and accelerate both the CEO of Bendigo Heritage Attractions. their short and longer term financial sustainability and business prosperity through implementation of the Bendigo Tramways Strategic Plan.
Annual Report 2016/2017 49 3.4 The reputation, profile and attraction of Greater Bendigo and the region are further enhanced through effective promotion
Council Plan action Progress Comments
Conserve, interpret and increase activity and In progress Negotiations are continuing to find a solution use of important Bendigo venues, including the for the ventilation and heating needs of Bendigo Town Hall, Ulumbarra Theatre and The Bendigo Town Hall. Capital.
Deliver on the major recommendations of the In progress The City and the Regional Tourism Board have Destination Management Plan as adopted by been working together to build the regional the Council, including establishing a regional website and develop regional itineraries. tourism website and working with Bendigo Heritage Attractions.
Market the Bendigo region to Australian and Completed The Tourism Marketing team continues to international visitors and local residents as a market Bendigo as a major visitor destination vibrant destination for shopping, dining, the through major seasonal campaigns into arts, and a range of sporting and recreational Melbourne, regional Victoria and interstate. attractions.
3.5 People are supported to learn about and make decisions that enable them to be connected, safe and the healthiest they can be
Council Plan action Progress Comments
Review the Local Laws that regulate and In progress The review of Local Laws number 3, 4 and 5 is control activities in public places, on private well progressed. property, streets and roads to protect the good order and amenity of the municipality.
Adopt the updated Domestic Animal In progress The Domestic Animal Management Plan was Management Plan (2016-2020) and implement sent to the Minister for endorsement in August the first year actions. 2016.
Implement agreed priority actions from Completed The current Youth Strategy is complete. A the Youth Strategy with a focus on young new draft Youth Strategy will be presented to people’s participation in decision making and Council in early 2017/2018. implementing programs that respond to the priority needs of young people including good health, drug and alcohol harm prevention, and personal safety.
3.6 Greater Bendigo has inclusive and equitable communities where people feel welcome and connected to others
Council Plan action Progress Comments
Promote equitable and inclusive communities Completed Implementation has included the following: through implementation of the Human • New staff training has been developed that Rights Charter across the organisation and covers human rights responsibilities and an implementation of the first Reconciliation element of unconscious bias Action Plan and Cultural Diversity and Inclusion • Implementation of the Reconciliation Plan Plan. and Cultural Diversity and Inclusion Plan has progressed well
50 OUR PERFORMANCE
Council Plan action Progress Comments
Review policies and procedures for Home In progress The Systems Administration Officer’s and Community Care Services, in line with the temporary contract has been extended until implementation of the Commonwealth Home the end of August to complete this work. Support Program (CHSP) and the National Disability Insurance Scheme (NDIS).
Continue to implement the Community Access In progress Implementation of the Community Access and and Inclusion Plan, including establishing and Inclusion Plan is well advanced. The Disability supporting a Disability Inclusion Reference Inclusion Reference Committee has continued Group. to run well.
Improve disability inclusion in the public Completed The Inclusive Towns project was publicly arena by implementing the Inclusive Towns launched in late 2016 and implementation Project, preparing and promoting opportunities work has been successful with business uptake related to the Information Capacity Building exceeding expectations. component of the NDIS and strengthening collaborations within the disability sector and between sectors.
Undertake further planning and development In progress Progress on developing a regional food hub for of a regional food hub in partnership with key Bendigo has been made, however a preferred stakeholders. site is still to be determined.
Working with key partners across the Completed Implementation has included: community, implement early years planning • Annual Early Years Forum initiatives identified in the Municipal Early • Sod turning at Strathfieldsaye Early Learning Years Plan that build on a child friendly city and Centre create the best future for our children. • Maintaining and upgrading preschool facilities
Work with key partners across the community Completed Implementation has included: to implement initiatives that progress identified • Recruiting members and launching a new Community Safety Strategy priorities to Positive Ageing Advisory Committee promote community health and wellbeing. • Supporting the production of the ZooM publication
Support children and families from birth to Completed Immunisation rates remain above State targets, school age through immunisation programs, maternal and child health key age and stage maternal and child health, enhanced maternal visits continue to track well. The enhanced and child health, early learning centres, and the maternal and child health program is having Off to an Early Start program, which supports significant positive impacts on vulnerable children aged zero to eight years. families, and the success of the Off to an Early Start program is well reported. Utilisation rates of the Early Learning Centres continue to be maintained above budget at 90%.
Annual Report 2016/2017 51 3.7 Structured community engagement, community planning and community development programs to support our residents and communities, particularly those who may experience isolation
Council Plan action Progress Comments
Support rural and neighbourhood Completed Junortoun Community Plan adopted. Axedale communities, including Axedale, Kangaroo and Goornong Community Plan updates Flat and Woodvale to review and develop their commenced. community plans.
Use structured approaches of engagement Completed Implementation has included the following: and community development to support • Community grants program successfully communities and community groups to delivered. achieve their desired aims, including priorities • Facilitated grant seeking workshops and from their community plans. networking forums. • Completed draft business plan for the Redesdale Community Hub concept
Implement agreed actions from the adopted Completed Implementation has included the following: Rural Communities Strategy. • The establishment of a Rural Communities Committee • Supported development of a Councillor Engagement program in rural areas
Services The following statement provides information in relation to the services funded in the 2016/2017 Budget and the persons or sections of the community who are provided the service.
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Capital The Capital Venues and Events unit provides quality performing arts programming (2,343) Venues and and activities to the central Victorian region and provides facilities and (2,203) Events opportunities for participation in the arts. (140)
Bendigo Art The Bendigo Art Gallery develops and delivers exhibitions, public programs and (1,758) Gallery associated events that are appealing to a range of audiences. The Gallery also (2,302) encourages philanthropy and supports the Bendigo Art Gallery Foundation. 544
Health and The Health and Wellbeing Directorate advises Council on matters relating to the (769) Wellbeing directorate and contributes to the executive management of the City. (509) (260)
Active and The Active and Healthy Communities unit is responsible for the planning, design, (3,920) Healthy management, maintenance and creation of public access to sport and leisure (4,355) Communities opportunities for the residents of and visitors to Greater Bendigo. 436
52 OUR PERFORMANCE
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Community The Community Services unit delivers a broad range of community services, (1,417) Services including early learning centres, maternal and child health service and (2,511) immunisation, as well as home support services for frail older people and people 1,094 with disabilities.
Community The Community Partnerships unit prepares and implements social policy and (3,221) Partnerships community development programs focussed on cultural diversity, disability (3,573) inclusion, positive ageing, community development, early years planning, youth 351 development, emergency response and recovery, crime prevention and small town and rural development.
Environmental The Environmental Health and Local Laws unit works to protect and improve (1,089) Health and public health and safety in the areas of food safety and tobacco control, (1,383) Local Laws wastewater management and the enforcement of Local Laws. 295
Engineering The Engineering and Public Space unit provides a network of road and footpath (647) and Public infrastructure to service the mobility requirements of the municipality. (2,616) Space 1,969
Parks and The Parks and Natural Reserves unit provides a safe network of open space that (11,364) Natural meets the needs of users to participate in a variety of recreational activities, (11,202) Reserves including sports fields. The unit also protects and enhances the natural (162) environment through the implementation of management strategies and practices.
Works The Works unit ensures essential infrastructure is constructed, maintained and (12,082) renewed including: sealed local roads and other civil construction projects such as (12,073) bridges, drains, footpaths. (9)
Bendigo The Bendigo Livestock Exchange is a National Saleyard Quality Assurance (NSQA) (254) Livestock and European Union (EU) accredited sheep, cattle and pig selling complex, (146) Exchange which conforms to the Occupational Health and Safety Management System for (108) saleyards.
Annual Report 2016/2017 53 Performance indicators The following statement provides the results of the prescribed service performance indicators and measures including explanation of material variations.
Service/indicator/measure Results Material variations 2015 2016 2017
Food safety
Timeliness 0 2.81 3.16 From July 1, 2016, 'Time taken Time taken to action food complaints to action food complaints' will be reported by calendar [Number of days between receipt and first year. Previously this indicator response action for all food complaints / was reported by financial year. Number of food complaints] This has been implemented to better align reporting with the Department of Health and Human Services. This may result in some variances year on year.
Service standard 82.22% 88.92% 66.30% The differences between the Food safety assessments 2015 and 2016 calendar year are due to a staff shortage for [Number of registered class 1 food premises much of the 2016 calendar and class 2 food premises that receive an year, a stronger focus on annual food safety assessment in accordance enforcement for serial offenders with the Food Act 1984 / Number of registered and corrections to reporting class 1 food premises and class 2 food methods for temporary premises that require an annual food safety premises. For the majority of assessment in accordance with the Food Act the 2016 calendar year, the 1984] x100 Food and Tobacco team was operating with below 3.5FTE officers, which is less than that of previous years.
Service cost $410.88 $322.22 $239.42 For the majority of the 2016 Cost of food safety service calendar year, the Food and Tobacco team was operating [Direct cost of the food safety service / Number with below 3.5FTE officers, of food premises registered or notified in which is less than that of accordance with the Food Act 1984] previous years.
Health and safety 100% 93.55% 74.66% From July 1, 2016, 'Critical Critical and major non-compliance outcome and major non-compliance notifications outcome notifications' will be reported by calendar year. [Number of critical non-compliance outcome Previously this indicator was notifications and major non-compliance reported by financial year. notifications about a food premises followed This has been implemented up / Number of critical non-compliance to better align reporting with outcome notifications and major non- the Department of Health compliance notifications about a food and Human Services. This premises] x100 may result in some variances year on year. The decrease is predominantly related to staff shortages in the 2016/2017 period.
54 OUR PERFORMANCE
Service/indicator/measure Results Material variations 2015 2016 2017
Home and Community Care (HACC)
Timeliness 0 8.60 Reporting Reporting on HACC ceased Time taken to commence the HACC service ceased on July 1, 2016 due to July 1, the introduction of the [Number of days between the referral of a 2016 Commonwealth Government's new client and the commencement of HACC National Disability Insurance service / Number of new clients who have Scheme (NDIS) and received a HACC service] Commonwealth Home Support Program (CHSP).
Service standard 77.78% 88.89%. Reporting Reporting on HACC ceased Compliance with Community Care Common ceased on July 1, 2016 due to Standards July 1, the introduction of the 2016 Commonwealth Government's [Number of Community Care Common NDIS and CHSP. Standards expected outcomes met / Number of expected outcomes under the Community Care Common Standards] x100
Service cost $0.00 $46.40 Reporting Reporting on HACC ceased Cost of domestic care service ceased on July 1, 2016 due to July 1, the introduction of the [Cost of the domestic care service / Hours of 2016 Commonwealth Government's domestic care service provided] NDIS and CHSP.
Service cost $0.00 $52.97 Reporting Reporting on HACC ceased Cost of personal care service ceased on July 1, 2016 due to July 1, the introduction of the [Cost of the personal care service / Hours of 2016 Commonwealth Government's personal care service provided] NDIS and CHSP.
Service cost $0.00 $74.04 Reporting Reporting on HACC ceased Cost of respite care service ceased on July 1, 2016 due to July 1, the introduction of the [Cost of the respite care service / Hours of 2016 Commonwealth Government's respite care service provided] NDIS and CHSP.
Participation 19.64% 18.29% Reporting Reporting on HACC ceased Participation in HACC service ceased on July 1, 2016 due to July 1, the introduction of the [Number of people that received a HACC 2016 Commonwealth Government's service / Municipal target population for HACC NDIS and CHSP. services] x100
Participation 11.58% 12.04% Reporting Reporting on HACC ceased Participation in HACC service by CALD people ceased on July 1, 2016 due to July 1, the introduction of the [Number of CALD people who receive a 2016 Commonwealth Government's HACC service / Municipal target population NDIS and CHSP. in relation to CALD people for HACC services] x100
Annual Report 2016/2017 55 Service/indicator/measure Results Material variations 2015 2016 2017
Maternal and Child Health (MCH)
Satisfaction 98% 101.22% 99.15% Participation in first MCH home visit [Number of first MCH home visits / Number of birth notifications received] x100
Service standard 93% 97.49% 100.78% Infant enrolments in the MCH service [Number of infants enrolled in the MCH service (from birth notifications received) / Number of birth notifications received] x100
Service cost $0.00 $68.84 $78.17 More labour was used in Cost of the MCH service 2016/2017 for the service. [Cost of the MCH service / Hours worked by MCH nurses]
Participation 79% 77.40% 76.65% Participation in the MCH service [Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service] x100
Participation 76% 74.74% 78.56% Participation in the MCH service by Aboriginal children [Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100
Animal Management
Timeliness 0.00 1.28 1.23 Time taken to action animal management requests [Number of days between receipt and first response action for all animal management requests / Number of animal management requests]
Service standard 55% 52.93% 40.56% The number of animals Animals reclaimed collected remained consistent with previous years however [Number of animals reclaimed / Number of animals there has been a drop in the collected] x100 number of animals reclaimed by their owners this year.
Service cost $42.74 $40.00 $38.83 Cost of animal management service [Direct cost of animal management service / number of registered animals]
Health and safety 6 5 7 There were five successful Animal management prosecutions prosecutions for 2015/2016 and seven for 2016/2017 which [Number of successful animal management results in an increase of 40%. prosecutions]
56 OUR PERFORMANCE
THEME 4: PRODUCTIVITY
Strategic Indicators The following statement reviews the performance of Council against the strategic indicators (Liveability Indicators).
Strategic indicator/measure 2016/2017 result Comments
Increase proportion of the workforce 12.5% (ABS 2011) This is similar to the regional Victorian who have completed a Bachelor average of 13%. Degree or higher.
Decrease unemployment, especially Overall unemployment was 5.4% This is lower than last year’s for young people. (June 16-March 17) unemployment figures.
Increase the proportion of 17-year- 76% (ABS 2011) In Bendigo there are likely to be more olds still attending education than 300 17-year-olds who are not in (including school and vocational schooling, training or the workforce. training).
Maintain a growth rate of the Greater 2.8% (2016) This is a bigger increase than the Bendigo economy that is equal to or previous year. better than Victoria, as measured by Gross Regional Product (GRP).
Major initiatives The following statement reviews the progress of Council against major initiatives identified in the 2016/2017 Budget.
• Develop the Career Horizons online work experience program ($20,000) - complete
Council Plan objectives and actions The following statement reviews Council’s performance against its 2016/2017 actions from the Council Plan.
4.1 Council fosters business and industry growth
Council Plan action Progress Comments
Implement the Economic Development Completed Job growth within the SME community was Strategy with a strong focus on growing jobs in encouraged through 11 small business support Small to Medium Business Enterprises (SME) initiatives. through “business health” mentoring and support, high profile events such as the Small Business Festival, and youth employment through the Career Horizons program in partnership with Mt Alexander and Central Goldfields Shires.
Annual Report 2016/2017 57 4.2 Effective partnerships build and support increased workforce skills for young people in particular
Council Plan action Progress Comments
Support development of La Trobe University’s Completed This is ongoing through programs such as Bendigo Art Institute in association with 'Exhibiting Culture’ and various exchanges of Bendigo Art Gallery. physical space and educational forums shared between the two organisations.
Foster new industry and business initiatives Completed Regional intensive livestock opportunity through business, agricultural and industry feasibility study completed. events and workshops.
Support tourism business growth by facilitating Completed An Instagram workshop was held for retailers their access to industry research, training and tourism operators. The Visitor Services opportunities, recent publicity and cooperative team is continuing to work with Heathcote marketing and networking opportunities. operators to ensure they can market their business via digital channels.
4.3 Invention and innovation is fostered through a series of targeted activities and partnerships
Council Plan action Progress Comments
Promote Bendigo as a centre for invention Completed Significant work is being undertaken to source and innovation through the Bendigo Inventor sponsorship of BIA by Be.Bendigo and BIA Awards (BIA), Bendigo Industry and Innovation Advisory Group. Initiative and associated innovation programs.
Develop programs that facilitate young people Completed Implementation has included the following: to develop skills that enable employment • Delivering a range of events and programs readiness through the Community, for young people i.e: FReeZA events and the Opportunity, Growth Centre at 45 Mundy Street, YO Media Team Bendigo. • Skill development workshops have included photography, barista training, coding and film making
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4.4 Stronger and wider links between students, education and employers are built through structured programs, marketing, skills development and the promotion of work placements
Council Plan action Progress Comments
Support secondary and tertiary education In progress Curriculum and industry groups now formed providers to expand their offerings in identified for the Bendigo Technical School. local priority employment areas.
Use deliberate strategies to foster the active In progress The City is continuing discussions with La participation of young people in creative Trobe University to explore the opportunity thinking and research about climate change for post graduate students to conduct strategies for Greater Bendigo. sustainability projects.
Support the development of the Bendigo In progress Negotiations continue with Bendigo Kangan Kangan Institute's proposed Centre of Institute to identify opportunities to link the Excellence in health-related vocational training. training offer to local businesses.
Use deliberate strategies to foster the active Completed Children's choir performed with Victorian participation of young people in creative Opera's Pied Piper at The Capital in November industries. 2016.
Services The following statement provides information in relation to the services funded in the 2016/2017 Budget and the persons or sections of the community who are provided the service.
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Strategy and The Strategy and Growth Directorate advises Council on matters relating to the (2,119) Growth directorate, contributes to the executive management of the City and represents (1,729) Greater Bendigo on a number of key organisations and industry boards. (389)
Tourism The Tourism unit delivers quality visitor experiences through a team of staff and (2,088) volunteers and develops and markets Bendigo Tourism’s experiences digitally (2,250) across a number of platforms. 163
Major Events The Major Events unit attracts and supports major events, such as sport and (1,878) leisure events, conferences, expos, and food and wine events. The unit manages (2,090) the annual Bendigo Easter Festival and delivers civic events, including Citizenship 212 Ceremonies.
Economic The Economic Development unit provides support and advice to businesses and (1,243) Development industry, including lobbying, partnership opportunities, networking and training (1,372) programs in order to stimulate local economic activity. 129
Annual Report 2016/2017 59 THEME 5: SUSTAINABILITY
Strategic indicators The following statement reviews the performance of Council against the strategic indicators (Liveability Indicators).
Strategic indicator/measure 2016/2017 result Comments
Decrease greenhouse pollution. 9.1 tonnes of CO₂ per occupied Bendigo’s emissions are private dwelling (2007) comparatively better than other cities in Victoria, which may be explained by climatic conditions.
Increase diversion of domestic waste 44.32 % This is a significant increase on last to resource recovery. year due to the introduction of the organics service.
Increase community satisfaction N/A Not surveyed in 2017. rating for Council’s general town planning policy.
Reduce average volume of waste 501kg This has decreased significantly from generated by each household. last year’s result.
Maintain or exceed the current N/A Not surveyed in 2017. community satisfaction level with Council’s waste services, as measured annually on a state-wide basis.
Major initiatives The following statement reviews the progress of Council against major initiatives identified in the 2016/2017 Budget.
• Organics fortnightly waste collection ($0) - complete
Council Plan objectives and actions The following statement reviews Council’s performance against its 2016/2017 actions from the Council Plan.
5.1 Protect and conserve Greater Bendigo’s natural environment and settings for the future
Council Plan action Progress Comments
Implement the City’s Invasive Plants and Completed Recommendations are continuing to be Animals Strategy. implemented. The strategy is due for review in 2017/2018.
Implement the agreed first year action plan In progress Sustainable Building Policy adopted by Council from the Greater Bendigo Environmental in June. Initial work on an urban forest strategy Sustainability Strategy (2015-2020). has commenced.
60 OUR PERFORMANCE
5.2 The history, unique heritage, streetscapes and buildings of Greater Bendigo are conserved, restored, celebrated and managed wisely for the long term
Council Plan action Progress Comments
Use a range of approaches to support the Completed A list of heritage properties requiring conservation and restoration of heritage restoration works has been prioritised and buildings. a budget secured to undertake these critical works.
Conserve Greater Bendigo heritage by In progress An annual heritage photographic competition, commencing an annual streetscape now known as 'Heritage through the Lens', is photographic record. being run under the auspices of the Greater Bendigo Heritage Advisory Committee.
Implement the recommendations of the In progress The Planning Scheme Amendment process Bendigo City Centre Citations Study that cannot commence until the Citation Study documents the heritage significance of key is completed. Preliminary work on the buildings in central Bendigo. amendment is underway.
Provide visitor materials and experiences that Completed The Bendigo Visitor Centre is conducting a connect people with Bendigo’s history, heritage range of local history tours to major heritage and buildings. attractions.
Complete, adopt and commence In progress A draft of the Heritage Study has been implementation of the Heritage Strategy. completed and will be put to Council in 2017/2018.
Develop a strategic direction for a long term In progress A consultant was engaged in March 2017 to management plan for Bendigo’s historical survey the major community collections, artefacts and the conservation of the including Bendigo Historical Society, and Bendigo Historical Society collection, which advise on the long term preservation, incorporates interim steps as required. management and access to their historical artefacts.
Annual Report 2016/2017 61 5.3 Essential infrastructure is constructed, maintained and renewed to meet the needs of current and future residents
Council Plan action Progress Comments
Deliver building projects approved by Council. Completed 80% of projects completed with the remainder in the final stages of delivery.
Maintain and renew existing Council owned Completed Service contracts for cleaning, preventative and managed properties to agreed service level maintenance works along with essential safety requirements and statutory regulations. measures are in place in nominated Council owned and managed properties.
Complete the Planning Scheme Amendment In progress Following the public release of the Panel for the Urban Bendigo Flood Study. report in December 2016, ongoing discussions are occurring with interested parties and a decision on when to submit the study for final endorsement by Council is pending.
Finalise flood records/levels in collaboration Completed Flood levels and mapping has been agreed with the Catchment Management Authority as with the Catchment Management Authority. part of the completion of the Marong Structure Plan.
Implement asset management strategies Completed Asset management plans have been prepared including for paths, roads, bridges and drainage for all major asset groups. systems.
Continue to work with the community to better Completed Discussions have been undertaken to ensure utilise and access current community building community groups have access to current assets, more clearly identify user/owner property assets and new groups or activities responsibilities and implement the Surplus are encouraged to access current facilities, at Property Disposal Plan. times through a shared arrangement.
5.4 Enable community members to reduce their environmental footprint by using resources, materials and assets more wisely
Council Plan action Progress Comments
Build knowledge and capacity to respond to Completed The City has participated in the stakeholder the State Government developing policy about reference group for the development of localised solutions to water capture, use and Coliban Water's Integrated Water Cycle disposal. Augmentation planning process looking at water requirements and possible sources into the future.
Develop a ‘Greening Bendigo’ strategy in In progress The City was successful in obtaining a grant accordance with the State Government for Greening Bendigo to fund two projects; initiative to capture and use storm water Stormwater Harvesting at the Bendigo Botanic from public spaces on site to increase their Gardens and Irrigation for Upper Rosalind Park. attractiveness.
62 OUR PERFORMANCE
Council Plan action Progress Comments
Promote water security through Council-led In progress The Sustainable Building Policy adopted by action on local education and conservation. Council promotes using the most efficient Water Efficiency Labelling and Standards (WELS) rated products, best practice stormwater quality and management practices for Council projects.
Conduct deliberate activities designed to Completed This primarily occurs through City support of increase social commitment to reducing the Bendigo Sustainability Group projects. Recent impacts of climate change and set a liveability activity includes the Bendigo Sustainability target to document progress. Awards and an electric vehicle expo.
Renew the Ecologically Sustainable Design Completed The Sustainable Building Policy was adopted Policy, Guidelines and Checklist. in June 2017. The City will begin trialling Sustainable Design Assessments on selected planning applications in 2017/2018.
5.5 The level of waste to landfill is reduced and residual waste is managed responsibly to deliver the adopted waste management targets
Council Plan action Progress Comments
Implement the Waste and Resource Completed A key action of the Waste and Resource Management Strategy including implementing Management Strategy was the implementation the recommendations of the trial kerbside of the kerbside organics collection, which organics collection program, community commenced in September 2016. education about waste avoidance and reducing contamination in recycled materials.
Progress the development of a resource In progress A draft Master Plan for the proposed facility recovery and transfer facility to replace the has been completed, but is being reviewed for Eaglehawk Landfill, subject to external funding suitability. support.
5.6 Continued effort is made to minimise Council’s energy use and greenhouse gas emissions
Council Plan action Progress Comments
Implement the data integrity and collection Completed The Sustainable Procurement Schedule has recommendations from the 2015 Sustainable been fully developed and is now being used in Procurement Gap Analysis. all new Council tenders.
Reduce the City’s corporate greenhouse gas Completed Eleven Council facilities have now had lighting emissions through corporate initiatives. upgrades and the City continues to implement its solar PV program.
Annual Report 2016/2017 63 Services The following statement provides information in relation to the services funded in the 2016/2017 Budget and the persons or sections of the community who are provided the service.
Net Cost Actual Service Description (less) Budget (equals ) Variance $000
Parking The Parking and Animal Control unit manages the City's parking control, animal 1,714 and Animal management, school crossing supervision, aerodrome safety maintenance, and 2,390 Control compliance and CCTV surveillance in the CBD. (676)
Building and The Building and Property unit develops, upgrades and maintains community (5,678) Property assets and provides professional building advice and support to the public and (5,485) promotes compliance with building codes and standards to ensure public safety. (193)
Presentation The Presentation and Assets Directorate advises Council on matters relating to the (24,103) and Assets directorate and contributes to the executive management of the City. (23,861) (242)
Waste The Waste Services unit provides domestic waste collection services, is (15,256) Services responsible for the operation of landfills and transfer stations, as well as street (12,657) cleaning, drain and pit cleaning. (2,600)
Sustainable The Sustainable Environment unit provides a coordinated approach to the (896) Environment development of environmental policies, strategies, programs and processes, (914) Unit including climate change mitigation, adaptation and carbon management. 18
Finance Unit The Finance unit is responsible for the sound and professional stewardship of (268) Council finances and ensures financial accountability and compliance with the (524) legislative framework. 256
64 OUR PERFORMANCE
Performance indicators The following statement provides the results of the prescribed service performance indicators and measures including explanation of material variations.
Service/indicator/measure Results Material variations 2015 2016 2017
Waste collection
Satisfaction 166.92 135.31 154.26 The rollout of the organics Kerbside bin collection requests service saw an increase in requests to downsize the [Number of kerbside garbage and recycling kerbside garbage bin. bin collection requests / Number of kerbside bin collection households] x1000
Service standard 4.04 3.56 4.64 The increase of 1.08 missed bins Kerbside collection bins missed per 10,000 household can be explained by the introduction of [Number of kerbside garbage and recycling a third collection service. collection bins missed / Number of scheduled kerbside garbage and recycling collection bin lifts] x10,000
Service cost $140.35 $136.31 $135.03 Cost of kerbside garbage bin collection service [Direct cost of the kerbside garbage bin collection service / Number of kerbside garbage collection bins]
Service cost $27.30 $27.30 $28.03 Cost of kerbside recyclables collection service [Direct cost of the kerbside recyclables bin collection service / Number of kerbside recyclables collection bins]
Waste diversion 26% 28.65% 45.59% The increase in waste diverted Kerbside collection waste diverted from landfill from landfill is primarily due to the successful rollout of an [Weight of recyclables and green organics organics service across the collected from kerbside bins / Weight of municipality, which began in garbage, recyclables and green organics September 2016. collected from kerbside bins] x100
Annual Report 2016/2017 65 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
GOVERNANCE
The Greater Bendigo City Council • Ensuring that resources are community has many opportunities is constituted under the Local managed in a responsible and to provide input into Council’s Government Act 1989 to provide accountable manner decision-making processes, including leadership for the good governance • Advocating the interests of the local community consultation, public of the municipal district and the local community to other communities forums such as ward meetings and community. and governments the ability to make submissions on a range of matters including strategies Council has a number of roles • Fostering community cohesion and and plans. Council’s formal decision- including: encouraging active participation in making is conducted through Council civic life • Taking into account the diverse meetings. Council delegates the needs of the local community in Council is committed to effective day-to-day operating activities to City decision-making and sustainable forms of democratic staff. These delegations are exercised • Providing leadership and governing and corporate governance as the in accordance with adopted Council for all key to ensuring that Council and its policies and budget. administration meet the community’s priorities and expectations. The
66 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Meetings of Council July 1, 2016 to October 12, 2016 Since January 2017 Council has conducted open public meetings on Councillors Council Special Total the third Wednesday of each month Meeting Council instead of every third Wednesday, Meeting which was the previous meeting cycle. Members of the community are Cr Rod Fyffe 5 0 5 welcome to attend these meetings (Mayor) and observe from the gallery. There is also the opportunity to submit a Cr Rod Campbell 4 0 4 question to the Council. 5 0 5 In 2016/2017 Council held the Cr Elise Chapman following meetings: Cr Peter Cox 5 0 5 • 13 ordinary Council meetings • 2 special Council meetings Cr Helen Leach 5 0 5 The following table summarises councillor attendance at Council Cr Barry Lyons 5 0 5 meetings for the 2016/2017 financial year. There are two lists of councillors Cr Lisa Ruffell 4 0 4 because Council elections were held in October 2016. Cr Mark Weragoda 5 0 5
Special committees Cr James Williams 4 0 4 The Act allows councils to establish one or more special committees consisting of: November 7, 2016 to June 30, 2017 • Councillors • City staff Councillors Council Special Total • Other persons Meeting Council Meeting • Any combination of the above. The table below contains a list of Cr Margaret O'Rourke 8 2 10 special committees established by the (Mayor) Council that are in operation and the purpose for which each committee Cr Jennifer Alden 8 2 10 was established. Cr Matt Emond 8 2 10
Cr George Flack 6 2 8
Cr Rod Fyffe 8 2 10
Cr Julie Hoskin 8 2 10
Cr Andrea Metcalf 8 2 10
Cr James Williams 7 2 9
Cr Yvonne Wrigglesworth 8 2 10
Special Committee Councillors Officers Other Purpose
Bendigo Maubisse 1 1 14 Facilitate volunteer support from the Friendship Bendigo community to the community of Committee Maubisse, Timor Leste
Annual Report 2016/2017 67 Code of Conduct decision-making process or from the 2017, the councillor annual allowance exercise of the public duty. During was fixed at $31,652 per annum and The Local Government Amendment 2016/2017, 16 conflicts of interest were the allowance for the Mayor was (Improved Governance) Act 2015 declared at Council meetings. $101,104 per annum. The Minister became fully operational on March 1, for Local Government approved an 2016. Councillor allowances annual adjustment of 2.5 percent The amending Act makes changes from December 1, 2016 bringing the to the Local Government Act 1989, Section 74 of the Local Government allowances to $32,443 per annum for particularly in relation to councillor Act 1989, entitles councillors to receive councillors and $103,632 per annum conduct. These changes are intended an allowance while performing their for the Mayor. The following table to encourage improved standards duty as a councillor. The Mayor is also contains a summary of the allowances of behaviour in order to strengthen entitled to receive a higher allowance. paid to each councillor during the Council governance. The State Government sets the upper financial year. and lower limits for all allowances This Code was in place at the paid to councillors and Mayors. For general election on October 22, 2016 the period July 1, 2016 to June 30, and, consequently, was the Code of Conduct for the new incoming July 1, 2016 to October 12, 2016 councillors. Each new councillor declared they would abide by and Councillors Allowance $ sign the Code of Conduct before they commenced office. Cr Rod Fyffe (Mayor) 33,701.52 The Act requires that council review and make any necessary amendments Cr Rod Campbell 10,550.96 to its Councillor Code of Conduct within four months of an election. Cr Elise Chapman 10,550.96 This process takes place by calling Cr Peter Cox 10,550.96 a special meeting solely for the purpose of reviewing the Councillor Cr Helen Leach 10,550.96 Code of Conduct; and approving any amendments deemed necessary by Cr Barry Lyons 10,550.96 the Council. This special meeting was held in February 2017. Cr Lisa Ruffell 10,550.96 If any councillor did not comply with section 76(A) by signing the Code Cr Mark Weragoda 10,550.97 of Conduct within one (1) month of Cr James Williams 10,550.96 the special meeting, they would be disqualified as a councillor under Section 29(1)(e) of the Act. November 7, 2016 to June 30, 2017
Conflict of interest Councillors Allowance $ Councillors are elected to act in the best interests of the community Cr Margaret O'Rourke (Mayor) 69,911.73 and govern for all. When Council 22,599.43 delegates its powers to a City officer Cr Jennifer Alden or a committee, the committee or Cr Matt Emond 22,598.43 officer also needs to act in the public interest. A conflict of interest occurs Cr George Flack 21,242.58 when a personal or private interest (Cr Flack requested his allowance might compromise the ability to act be reduced by 10% as a cost-cutting in the public interest. A conflict of initiative in the current economic interest exists even if no improper act climate) results from it. Declaration of a conflict of interest is a standard agenda Cr Rod Fyffe 22,567.43 item for all Council and Committee meetings. While the procedures vary Cr Julie Hoskin 22,596.43 depending on the particular role and circumstances, in general they involve Cr Andrea Metcalf 22,595.43 disclosing the relevant interests and then stepping aside from the relevant Cr James Williams 22,591.43 Cr Yvonne Wrigglesworth 22,593.43
68 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Councillor expenses Councillors - current TR $ CM $ CC $ IC $ CT $ Total $ Under Section 75 of the Local Government Act 1989, Council is Cr Jennifer Alden 290 1,596 - 271 2,410 4,567 required to reimburse a councillor Nov 2016 - Jun 2017 for expenses incurred whilst performing his or her duties as a Cr Matt Emond councillor. Council is also required - - - 403 1,779 2,182 Nov 2016 - Jun 2017 to adopt and maintain a policy in relation to the reimbursement of Cr George Flack expenses for councillors. The policy - - - 274 1,533 1,807 provides guidance for the payment Nov 2016 - Jun 2017 of reimbursements of expenses and the provision of resources, facilities Cr Rod Fyffe and other support to the Mayor Jul 2016 - Jun 2017 4,439 4,219 - 1,584 2,165 12,407 and councillors to enable them to (Former Mayor) discharge their duties. Council also Cr Julie Hoskin publishes in its Annual Report the 273 1,874 - 595 4,017 6,759 details of the expenses, including Nov 2016 - Jun 2017 reimbursement of expenses for each councillor and member of a Council Cr Andrea Metcalf 271 - - 657 2,492 3,420 Committee paid by the Council. The Nov 2016 - Jun 2017 expenses for the 2016/2017 year are set out in the following table. Cr Margaret O'Rourke Nov 2016 - Jun 2017 9,481 - - 1,181 6,782 17,444 (Current Mayor)
Cr James Williams 512 446 - 1,495 4,736 7,189 Jul 2016 - Jun 2017
Cr Yvonne Wrigglesworth 449 - 91 275 4,259 5,074 Nov 2016 - Jun 2017
Councillors - former
Cr Rod Campbell 630 - - 311 10 951 Jul 2016 - Oct 2016
Cr Elise Chapman - 4,492 735 668 10 5,905 Jul 2016 - Oct 2016
Cr Peter Cox - 1,590 - 520 10 2,120 Jul 2016 - Oct 2016
Cr Helen Leach - 650 - 465 83 1,198 Jul 2016 - Oct 2016
Cr Barry Lyons - 2,480 - 518 83 3,081 Jul 2016 - Oct 2016
Cr Lisa Ruffell - - - 977 - 977 Jul 2016 - Oct 2016
Cr Mark Weragoda - 1,003 - 573 10 1,586 Jul 2016 - Oct 2016
Legend: TR - Travel, CM - Car Mileage, CC - Child Care, IC - Information and Communication expenses, CT - Conferences and Training expenses
Annual Report 2016/2017 69 MANAGEMENT
Council has continued to implement Internal audit auditors attended the March and a number of statutory and better September Audit Committee meetings practice programs to strengthen its Council’s internal audit function to present the annual audit plan management framework. Adhering provides independent and objective and Independent Audit Report. The to strong governance leads to better assurance that the appropriate external audit management letter and decision making by Council. The Act processes and controls are in place responses are also provided to the requires Council to undertake an across Council. The internal audit Audit Committee. assessment against the prescribed function is outsourced. The Internal Auditor undertakes a three yearly governance and management Risk management checklist and include this in its Annual assessment of significant risks and Report. Council’s Governance and exposures to establish the priority The City's risk management Management Checklist results are areas for review. The Internal Audit framework (which is aligned to risk set out in the section following. The Plan is then revised annually and management ISO 31000) supports the following items have been highlighted approved by the Audit Committee achievement of corporate objectives as important components of the to ensure audit resources remain by providing a clear and consistent management framework. focused on appropriate areas. The approach to review, manage and review process considers Council’s risk report on risks. The approach is framework, the Community Plan, the supported by a cross organisation Audit Committee impact of any change on operations, software tool (CAMMS) which specifies The Audit Committee's role is to report systems or the business environment, actions from the Council Plan in the to Council and provide appropriate prior audit coverage, and outcomes InterPlan Module and the Project advice and recommendations relevant and management input. Each Audit Management Module – both of which to its charter. This facilitates good Committee meeting receives a report contain embedded processes linked decision making by Council. The on the status of the Internal Audit to the Risk Management Module. Audit Committee plays a key role Plan and is presented the findings of Quarterly reporting generated in oversight for financial reporting, completed reviews. The responsible from these integrated modules internal control, risk management Director and Manager for each area provides assurance to the Executive system, ethical accountability and reviewed attend the Audit Committee Management Team (acting as the Risk the internal audit function. The meeting to respond to questions Management Committee) and the City Audit Committee consists of two in relation to the review. Following of Greater Bendigo Audit Committee. councillors and three independent the completion of reviews, any members, currently Mr Ken Belfrage outstanding recommendations are (Chair), Mr Graham Bastian and Mr assigned to responsible Managers and Warren Pollock (who replaced Ms Kate reported quarterly to the Executive Scarce during the year). Independent Management Team and the Audit members are appointed for a three Committee. year term. A sitting member is Quality assurance is measured able to reapply and be appointed through the annual Audit Committee for subsequent terms, though all performance review and completion reappointments following second of the internal audit plan. The Annual terms must be advertised. The Audit Internal Audit Plan for 2016/2017 Committee meets at least four times included the following reviews: a year with the Internal Auditor, Chief Executive Officer and Director • Strategic Audit Plan Corporate Performance attending • Contaminated Land Audit Committee meetings. The • Corporate Governance and external auditors attend in May and Councillor Expenses September each year to present the • Tree Management audit plan and independent audit • Depot Operations (including OH&S) report. Minutes of Audit Committee meetings are forwarded to councillors, including a report explaining any External audit specific recommendations and key Council is externally audited by the outcomes if relevant. Each year, the Victorian Auditor-General. For the Chair reports to Council a summary of 2016/2017 year, the annual external the activities and achievements of the audit of Council’s Financial Statements Committee during the financial year. and Performance Statement was conducted by the Victorian Auditor- General’s representative. The external
70 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
GOVERNANCE AND MANAGEMENT CHECKLIST
The following are the results in the prescribed form of council’s assessment against the prescribed governance and management checklist.
Governance and management items Assessment
1 Community engagement policy Date of operation of current policy: Policy outlining Council’s commitment to engaging with the April 13, 2016 community on matters of public interest
2 Community engagement guidelines Date of adoption: April 13, 2016 Guidelines to assist staff to determine when and how to engage with the community
3 Strategic Resource Plan Date of adoption: June 21, 2017 Plan under section 126 of the Act outlining the financial and non- financial resources required for at least the next four financial years
4 Annual budget Date of adoption: June 21, 2017 Plan under section 130 of the Act setting out the services to be provided and initiatives to be undertaken over the next 12 months and the funding and other resources required
5 Asset management plans Date of operation for all plans: June Plans that set out the asset maintenance and renewal needs for key 28, 2016 infrastructure asset classes for at least the next 10 years
6 Rating strategy Date of operation: June 21, 2017 Strategy setting out the rating structure of Council to levy rates and charges
7 Risk policy Date of operation: March 6, 2013 Policy outlining Council’s commitment and approach to minimising the risks to Council’s operations
8 Fraud policy Date of operation: July 14, 2015 Policy outlining council’s commitment and approach to minimising the risk of fraud
9 Municipal emergency management plan Date of operation: August 15, 2016 Plan under section 20 of the Emergency Management Act 1986 for emergency prevention, response and recovery
10 Procurement policy Date of adoption: August 16, 2017 Policy under section 186A of the Local Government Act 1989 outlining the matters, practices and procedures that will apply to all purchases of goods, services and works
11 Business continuity plan Date of adoption: March 31, 2017 Plan setting out the actions that will be undertaken to ensure that key services continue to operate in the event of a disaster
12 Disaster recovery plan Date of adoption: March 31, 2017 Plan setting out the actions that will be undertaken to recover and restore business capability in the event of a disaster
Annual Report 2016/2017 71 Governance and management items Assessment
13 Risk management framework Date of operation: March 6, 2013 Framework outlining Council’s approach to managing risks to the council’s operations
14 Audit Committee Date of establishment: April 10, 1994 Advisory committee of Council under section 139 of the Act whose role is to oversee the integrity of a council’s financial reporting, processes to manage risks to the council’s operations and for compliance with applicable legal, ethical, and regulatory requirements
15 Internal audit Date of engagement of current Independent accounting professionals engaged by the Council to provider: June 24, 2015 provide analyses and recommendations aimed at improving Council’s governance, risk and management controls
16 Performance reporting framework Date of operation of current A set of indicators measuring financial and non-financial performance, framework: July 1, 2013 including the performance indicators referred to in section 131 of the Act
17 Council Plan reporting Reported to Council on: Report reviewing the performance of the Council against the Council December 14, 2016 Plan, including the results in relation to the strategic indicators, for the March 15, 2017 first six months of the financial year June 21, 2017
18 Financial reporting Reported to Council: Quarterly statements to Council under section 138 of the Act December 14, 2016 comparing budgeted revenue and expenditure with actual revenue March 15, 2017 and expenditure June 21, 2017
19 Risk reporting End of 2015/2016 report went to Audit Six-monthly reports of strategic risks to Council’s operations, their Committee on September 14, 2016 likelihood and consequences of occurring and risk minimisation and to Council on October 12, 2016. strategies Half year 2016/2017 report went to Council on March 8, 2017 and Audit Committee on March 9, 2017.
20 Performance reporting End of 2015/2016 reports to Audit Six-monthly reports of indicators measuring the results against Committee on September 14, 2016 financial and non-financial performance, including performance and to Council on October 12, 2016. indicators referred to in section 131 of the Act Half Year report to Council on March 8, 2017 and Audit Committee on March 9, 2017.
21 Annual report Date presented: October 12, 2016 Annual report under sections 131, 132 and 133 of the Act to the community containing a report of operations and audited financial and performance statements
22 Councillor Code of Conduct Reviewed in February 15, 2017 Code under section 76C of the Act setting out the conduct principles and the dispute resolution processes to be followed by councillors
72 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Governance and management items Assessment
23 Delegations Updated March 21, 2017 A document setting out the powers, duties and functions of Council and the Chief Executive Officer that have been delegated to members of staff
24 Meeting procedures Local Law created January 1, 2010 A Local Law governing the conduct of meetings of Council and special committees
I certify that this information presents fairly the status of Council’s governance and management arrangements.
Craig Niemann Cr Margaret O'Rourke Chief Executive Officer Mayor Dated: September 22, 2017 Dated: September 22, 2017
Annual Report 2016/2017 73 STATUTORY INFORMATION
The following information is provided review took place under sections Integrated Planning and Reporting in accordance with legislative and 86(6) and 98(6), respectively, of the Framework ensures that services are other requirements applying to Act; responsive to community needs which council. • A document containing details have been identified through service of all leases involving land which reviews and a variety of community Documents available for were entered into by the Council as engagement processes such as community forums, small township public inspection lessor, including the lessee and the terms and the value of the lease; meetings, questionnaires, meetings, In accordance with Regulation 12 surveys and customer requests. • A register maintained under section of the Local Government (General) 224(1A) of the Act of authorised Other actions undertaken this year Regulations 2015, the following is a officers appointed under that that support Best Value include: list of the prescribed documents that section; are available for inspection or copies • Continuing program of service of the documents can be obtained • A list of donations and grants made reviews undertaken by various for the purposes of section 222 of the by the Council in the previous 12 units within the City Local Government Act 1989 at 195-229 months, including the names of • Comprehensive consultation Lyttleton Terrace, Bendigo persons who, or bodies which, have with the community through the received a donation or grant and • A document containing details of development of the Community the amount of each donation or overseas or interstate travel (other Plan and Public Health and grant. than interstate travel by land for Wellbeing Plan less than 3 days) undertaken in an • Annual budget process official capacity by any councillor Best value or member of staff in the previous The Local Government Act 1989 Community Access and 12 months, including— identifies six Best Value Principles that - the name of the councillor or every council in Victoria must comply Inclusion Plan (Disability member of staff; and with when providing services to the Action Plan) - the dates on which the travel community, which are as follows: In accordance with section 38 of the began and ended; and a) All services provided by a council Disability Act 2006, in 2015 the City - the destination of the travel; and must meet quality and cost prepared a Community Access and - the purpose of the travel; and standards Inclusion Plan (Disability Action Plan), which has a three-year life span. - the total cost to the Council of the b) All services provided by a council During 2016/2017 the City achieved travel, including accommodation must be responsive to the needs of the following progress on actions in costs; the community the Plan: • The agendas for, and minutes of, c) Each service provided by a council • Established the City’s first Disability ordinary and special meetings must be accessible to those held in the previous 12 months Inclusion Reference Committee to members of the community for advise Council on matters relating which are kept under section whom the service is intended 93 of the Act, other than those to disability access and inclusion agendas and minutes relating d) A council must achieve continuous • Began rolling out the Inclusive to a part of a meeting which was improvement in its provision of Towns project, which assists closed to members of the public services for its community businesses to become more under section 89 of the Act and are e) A council must develop a program accessible for people with confidential information within the of regular consultation with its disabilities meaning of section 77(2) of the Act; community in relation to the • Worked with the Customer Support • The minutes of meetings of special services it provides team to develop communication committees established under f) A council must report regularly to its boards to assist people with section 86 of the Act and held in community on its achievements in disabilities to communicate their the previous 12 months, other relation to the Best Value Principles needs to staff than those minutes relating to The City has a hierarchy of indicators • Funding secured for the a part of a meeting which was that monitor performance outcomes. construction of a ‘Changing Place’ closed to members of the public These are the Strategic Indicators (a fully accessible bathroom) for under section 89 of the Act and are (Liveability Indicators), Council Plan Bendigo confidential information within the actions, Budget actuals and variances • Purchased a Marveloo (a fully meaning of section 77(2) of the Act; and indicators set out in the Local accessible mobile bathroom) for • A register of delegations kept under Government Performance Reporting use at City and community events sections 87(1) and 98(4) of the Act, Framework. A hierarchy of plans in the including the date on which the last
74 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Carers recognition Council has taken all practicable relationship and has provided the measures to ensure staff, Council following additional activities and In accordance with the Carers agents and volunteers working for resources to recognise the care Recognition Act 2012, Council is Council are informed about the relationship: required to report annually on its principles and obligations of the Act • Link carers to Carers Support Group care measurement obligations by including information on the care and Advocacy supports under Section 11 of that Act. Council relationship in: has taken all practicable measures • Provision of respite services for • Council induction and training to comply with its responsibilities care recipients to maintain healthy programs for staff working in Home relationships with their carer outlined in the Carers Recognition Support Services Act 2012. Council has promoted • Provision of Social Support Groups • Council induction and training the principles of that Act to people for clients and their carers programs for staff working in in care relationships who receive frontline positions with the general council services, to people in care community Contracts relationships and to the wider • Induction and training programs for During the year Council did not enter community by: volunteers working directly with the into any contracts valued at $150,000 • Distributing printed material community (including GST) or more for services or through relevant Council services goods, or $200,000 (including GST) or Council has taken all practicable more for works without engaging in a • Providing information to measures to review and modify competitive process. organisations represented in policies, procedures and supports Council/community networks to include recognition of the carer
Local Laws in force in Greater Bendigo
Local Law Description Function
Number 1 Revocation Revoking previous Local Laws so that they do not run concurrently with new laws adopted as of January 1, 2000.
Number 2 Keeping of Animals To regulate and control activities associated with the keeping of animals so as to provide for the welfare of animals and to protect the general amenity.
Number 3 Environment Regulates and controls activities to protect and conserve the environment such as domestic/trade waste; open air burning and incinerators; European wasps and unsightly land.
Number 4 Streets and Roads The objective is to control certain secondary uses of streets and roads including street parties, processions and the display of advertising signs. The Local Law also requires that properties display their property number, regulates the construction of vehicle crossings and prevents the sale of vehicles on roadways.
Number 5 Municipal Places Regulates and controls activities in public places, such as consumption of liquor; cigarette vending machines; activities in trading areas, outdoor eating areas and camping to ensure peace, order and good governance.
Number 8 Process of Municipal Municipal Government processes. Government
Number 9 Bendigo Livestock Allows for the management and administration of the Bendigo Livestock Exchange Exchange.
Number 10 Administration Sets out the procedures for administering local laws.
Number 11 Protection of Public Assets Protecting public assets vested in Council and setting standards for the and Control of Building Sites management of building sites.
Annual Report 2016/2017 75 Freedom of information Protected disclosure • Aboriginal cultural awareness training delivered for councillors In accordance with section 7(4AA) procedures and senior staff (a) and 7(4AA)(b) of the Freedom In accordance with section 69 of • All staff diversity and inclusion of Information Act 1982, Council is the Protected Disclosure Act 2012 a training is under development to required to publish certain statements council must include in its annual be rolled out in late 2017 in their annual report or separately report information about how to such as on its website, concerning its access the procedures established • Support provided to the inaugural functions and information available. by the Council under Part 9 of that Bendigo Indigenous Film Festival Council has chosen to publish the Act. It is also required to provide • NAIDOC Week Flag Raising statements separately, however certain information about the number Ceremony hosted at the Bendigo provides the following summary and types of protected disclosure Town Hall and participation in of the application and operation complaints investigated during the events including Children’s Day of the Freedom of Information Act financial year. 1982. Access to documents may be Procedures on how to make a Road Management Act obtained through written request to disclosure are publicly available on the Ministerial Directions the Freedom of Information Officer, as City's website. During the 2016/2017 In accordance with section 22 of the detailed in section 17 of the Freedom year no disclosures were notified Road Management Act 2004, Council of Information Act 1982 and in to City officers appointed to receive must publish a copy or summary of summary as follows: disclosures or to IBAC. any Ministerial Direction in its Annual • It should be in writing Report. • It should identify as clearly as Human Rights and possible which document is being Responsibilities No such Ministerial Directions were requested received by the City during the All public authorities in Victoria 2016/2017 financial year. • It should be accompanied by are obliged to comply with the the appropriate application fee Victorian Charter of Human Rights (the fee may be waived in certain and Responsibilities Act 2006. The Food Act Ministerial circumstances) development of the Bendigo Human Directions Requests for access to information Rights Charter 2014 articulated Council In accordance with section 7E of the under the Freedom of Information Act responsibilities and strengthened the Food Act 1984, Council is required to should be lodged on the Freedom of commitment to Human Rights. publish a summary of any Ministerial Information application form and sent In 2016 Council adopted the Greater Directions received during the to the Freedom of Information Officer. Bendigo Cultural Diversity and financial year in its annual report. Requests can also be lodged online or Inclusion Plan; and the Greater No such Ministerial Directions were by email. Bendigo Reconciliation Plan in received by the City during the Access charges may also apply once consultation with key stakeholders. financial year. documents have been processed and Actions completed as part of the a decision on access is made (e.g. Cultural Diversity and Inclusion Plan photocopying and search and retrieval and Reconciliation Plan in 2016/2017 charges). include:
Freedom of Information Applications
Total Granted in Granted in Denied Withdrawn No Document Transferred Applications Full Part found or does not exist
2016/2017 26 14 7 3 Nil Nil 2
2015/2016 16 4 9 3 Nil Nil Nil
2014/2015 35 16 12 3 Nil 4 Nil
2013/2014 17 6 8 2 Nil 1 Nil
2012/2013 16 4 7 Nil 2 Nil Nil
2011/2012 40 11 17 6 6 Nil Nil
Further information can be found at www.foi.vic.gov.au and on the City's website: www.bendigo.vic.gov.au
76 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Domestic Animal Management Plan
The Domestic Animal Management • Address over- Plan 2016 – 2021 (DAMP) was adopted population and high in July 2016. euthanasia rates for Some of the key strategies and actions dogs and cats the DAMP 2016 – 2021 identifies are to: • Minimise the potential for • Ensure officers are adequately dogs and cats to create a nuisance trained to administer and enforce • Identify and register all Domestic the Domestic Animals Act 1994 • Identify dangerous, menacing and restricted breed dogs and ensure Animal Businesses in the • Promote and encourage municipality and ensure they are these dogs are kept in compliance responsible pet ownership in compliance with the Domestic with the Domestic Animals Act 1994 • Minimise the risk of dog attacks Animals Act 1994
Annual Report 2016/2017 77 GLOSSARY
Act means the Local Government Act 1989
Annual report means a report of the Council’s operations of the previous financial year and contains a report of operations, audited financial statements and an audited performance statement
Appropriateness means indicators or measures that provide users with sufficient information to assess the extent to which an entity has achieved a pre-determined target, goal or outcome
Budget means a plan setting out the services and initiatives to be funded for the financial year and how they will contribute to achieving the strategic objectives specified in the Council Plan
Council Plan means a plan setting out the medium-term strategic objectives, strategies, strategic indicators and resources reflecting vision and aspirations of the community for a four year period
Financial performance indicators means a prescribed set of indicators and measures that assess the effectiveness of financial management in a council covering operating position, liquidity, obligations, stability and efficiency
Financial statements means the financial statements and notes prepared in accordance with the Local Government Model Financial Report, Australian Accounting Standards and other applicable standards as they apply to the general purpose financial reports and a statement of capital works and included in the annual report
Financial year means the period of 12 months ending on June 30 each year
Governance and management checklist means a prescribed checklist of policies, plans and documents that councils must report the status of in the report of operations, covering engagement, planning, monitoring, reporting and decision making
Indicator means what will be measured to assess performance
Initiatives means actions that are one-off in nature and/or lead to improvements in service
Major initiative means significant initiatives that will directly contribute to the achievement of the council plan during the current year and have a major focus in the budget
Measure means how an indicator will be measured and takes the form of a computation, typically including a numerator and denominator
Minister means the Minister for Local Government
Performance statement means a statement including the results of the prescribed service outcome indicators, financial performance indicators and sustainable capacity indicators for the financial year and included in the annual report
Planning and accountability framework means the key statutory planning and reporting documents that are required to be prepared by councils to ensure accountability to local communities in the performance of functions and exercise of powers under the Act
Regulations means the Local Government (Planning and Reporting) Regulations 2014
78 GOVERNANCE, MANAGEMENT AND OTHER INFORMATION
Relevance means indicators or measures that have a logical and consistent relationship to an entity's objectives and are linked to the outcomes to be achieved
Report of operations means a report containing a description of the operations of the Council during the financial year and included in the annual report
Services means assistance, support, advice and other actions undertaken by a council for the benefit of the local community
Service outcome indicators means the prescribed service performance indicators to be included in the performance statement which measure whether the stated service objective has been achieved
Service performance indicators means a prescribed set of indicators measuring the effectiveness and efficiency of Council services covering appropriateness, quality, cost and service outcomes
Strategic objectives means the outcomes a Council is seeking to achieve over the next four years and included in the Council Plan
Strategic resource plan means a plan of the financial and non-financial resources for at least the next four years required to achieve the strategic objectives in the Council Plan. It is also referred to as a long term financial plan
Strategies means high level actions directed at achieving the strategic objectives in the Council Plan
Sustainable capacity indicators means a prescribed set of indicators measuring whether councils have the capacity to meet the agreed service and infrastructure needs of the local community and absorb foreseeable changes and unexpected shocks into the future covering financial performance, capacity and governance and management
Annual Report 2016/2017 79 Greater Bendigo City Council Financial Statements For the Year Ended 30 June 2017
80 FINANCIAL STATEMENTS 2016/2017
Greater Bendigo City Council Financial Report Table of Contents
FINANCIAL REPORT Page Financial Statements Comprehensive Income Statement 821 Balance Sheet 832 Statement of Changes in Equity 843 Statement of Cash Flows 854 Statement of Capital Works 865 Notes to Financial Statements Introduction Note 1 Significant Accounting Policies 876 Note 2 Budget Comparisons 1596 Note 3 Rates and Charges 10019 Note 4 Statutory Fees and Fines 10019 Note 5 User Fees and Charges 10120 Note 6 Contributions 10120 Note 7 Net Gain/ (Loss) on Disposal of Property, Infrastructure, Plant and Equipment 10120 Note 8 Grants 10221 Note 9 Other Income 10322 Note 10 Employee Costs 10322 Note 11 Contract Payments, Materials and Services 10423 Note 12 Depreciation 10423 Note 13 Other Expenses 10524 Note 14 Investments in Associates 10524 Note 15 Cash and Cash Equivalents 10625 Note 16 Other Financial Assets 10625 Note 17 Non-Current Assets Held For Sale 10625 Note 18 Other Assets 10625 Note 19 Trade and Other Receivables 10726 Note 20 Property, Infrastructure and Plant Equipment 10827 Note 21 Forestry Plantations 11433 Note 22 Intangible Assets 11433 Note 23 Trade and Other Payables 11433 Note 24 Trust Funds and Deposits 11534 Note 25 Provisions 11534 Note 26 Interest Bearing Loans and Borrowings 11736 Note 27 Reserves 11837 Note 28 Notes to Cash Flow Statement 12039 Note 29 Commitments for Expenditure 12140 Note 30 Operating Lease Commitments 12241 Note 31 Superannuation 12241 Note 32 Contingent Liabilities 12443 Note 33 Cintingent Assets 12544 Note 34 Financial Instruments 12645 Note 35 Related Party Transactions 12847 Note 36 Senior Officer Remuneration 13049 Note 37 Events Occurring after Balance Date 13049 Certification of Financial Statements 13150 Auditor General's Report - Financial Statements 13251 Performance Statement for 2016/2017 13453 Certification of Performance Statement 14463 Auditor General's Report - Performance Statement 14564
Annual Report 2016/2017 81 Comprehensive Income Statement For the Year Ended 30 June 2017 Greater Bendigo City Council 2017 2016 Note $'000 $'000 INCOME Rates and Charges 3 106,143 99,971 Statutory Fees and Fines 4 4,466 3,818 User Charges, Fees and Fines 5 24,650 25,519 Contributions - Cash 6 19,193 7,523 Contributions - Non Monetary 6 20,342 17,095 Found Assets 20 21,782 1,691 Grants - Operating 8 32,784 19,342 Grants - Capital 8 14,125 32,130 Interest on Investments 1,722 1,645 Other Income 9 1,751 1,735 Total Income 246,958 210,469 EXPENSES Employee Costs 10(a) 58,302 56,910 Contract Payments, Materials and Services 11 71,583 68,322 Depreciation and Amortisation 12 31,230 30,149 Borrowing Costs 1,773 1,716 Bad and Doubtful Debts 731 293 Other Items of Expense 13 5,035 2,696 Net Loss on Disposal of Property, Plant, 7 27,225 8,981 Infrastructure and Assets Held for Sale Share of Losses / (Profits) of Associates 14 898 (90) Total Expenses 196,777 168,977
Surplus for the year 50,181 41,492
Other Comprehensive Income Items that will not be reclassified to surplus or deficit: Net Asset Revaluation Increments 27(a) 23,500 14,042
Total comprehensive result 73,681 55,534
The above comprehensive income statement should be read with the accompanying notes.
82 Page 1 FINANCIAL STATEMENTS 2016/2017
Balance Sheet As at 30 June 2017 Greater Bendigo City Council 2017 2016 Note $'000 $'000 ASSETS Current Assets Cash and Cash Equivalents 15 79,950 65,115 Trade and Other Receivables 19 16,105 19,727 Other Financial Assets 16 - 34 Inventories 241 175 Non-Current Assets Held for Sale 17 335 - Other Assets 18 1,953 2,274 Total Current Assets 98,584 87,325
Non-Current Assets Investments in Associates 14 3,222 4,120 Trade and Other Receivables 19 85 84 Property, Infrastructure, Plant and Equipment 20 1,428,320 1,341,542 Forestry Plantations 21 63 57 Intangible Assets 22 4,220 2,583 Total Non-Current Assets 1,435,910 1,348,386 TOTAL ASSETS 1,534,494 1,435,711
Current Liabilities Trade and Other Payables 23 17,584 14,082 Trust Funds and Deposits 24 3,112 3,151 Provisions 25(a) 17,273 15,499 Interest Bearing Loans and Borrowings 26 3,705 1,964 Total Current Liabilities 41,674 34,696
Non-Current Liabilities Provisions 25(a) 12,518 7,689 Interest Bearing Loans and Borrowings 26 46,779 33,484 Total Non-Current Liabilities 59,297 41,173 TOTAL LIABILITIES 100,971 75,869
NET ASSETS 1,433,523 1,359,842
Equity Accumulated Surplus 660,206 603,406 Reserves 27 773,317 756,436 TOTAL EQUITY 1,433,523 1,359,842
The above balance sheet should be read in conjunction with the accompanying notes.
Annual Report 2016/2017Page 2 83 Statement of Changes in Equity For the Year Ended 30 June 2017 Greater Bendigo City Council
Total Accumulated Asset Statutory Discretionary Surplus Revaluation Reserve Reserves Reserve
Note $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2016 1,359,842 603,406 716,121 6,379 33,936 Surplus for the Year 50,181 50,181 - - - Net Assets Revaluation Increment 27(a) 23,500 - 23,500 - - Transfer to Other Reserves 27(b) - (13,269) - 1,371 11,898 Transfer from Other Reserves 27(b) - 19,888 - (710) (19,178)
Balance at 30 June 2017 1,433,523 660,206 739,621 7,040 26,656
Total Accumulated Asset Statutory Discretionary Surplus Revaluation Reserve Reserves Reserve
Note $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2015 1,304,308 575,373 702,079 5,207 21,649 Surplus for the Year 41,492 41,492 - - - Net Assets Revaluation Increment 27(a) 14,042 - 14,042 - - Transfer to Other Reserves 27(b) - (23,985) - 2,045 21,940 Transfer from Other Reserves 27(b) - 10,526 - (873) (9,653)
Balance at 30 June 2016 1,359,842 603,406 716,121 6,379 33,936
The above statement of changes in equity should be read in conjunction with the accompanying notes.
84 Page 3 FINANCIAL STATEMENTS 2016/2017
Statement of Cash Flows For the Year Ended 30 June 2017 Greater Bendigo City Council Inflows / (Outflows) 2017 2016 Note $'000 $'000 Cash Flows from Operating Activities Rate and Charges 106,143 99,803 Statutory Fees and Fines 4,913 4,200 User Charges Fees and Fines 26,311 27,303 Grants - Operating 34,423 20,309 Grants - Capital 18,634 23,575 Contributions - Monetary 21,112 8,275 Interest Received 1,722 1,872 Other Receipts 1,906 1,872 Net GST Refund (661) 1,503 Employee Costs (58,671) (57,485) Materials and Services (74,707) (88,102) Trust Monies Repaid (43) - Net Cash Provided by / (Used in) Operating Activities 28(b) 81,082 43,125
Cash Flows from Investing Activities Proceeds - Sale of Property, Plant and Equipment and Infrastructure 7 731 1,103 Payments - Property, Plant, Equipment and Infrastructure (80,335) (43,969) Proceeds from Investments 34 5,966 Net Cash Provided by / (Used in) Investing Activities (79,570) (36,900)
Cash Flows from Financing Activities Loans for Heritage Loans (48) (15) Loan Repayments from Heritage Loans 54 65 Loans to Local Organisations (15) (46) Loan Repayments by Local Organisations 69 60 Proceeds from Borrowings 17,000 5,000 Repayment of Borrowings (1,964) (1,402) Finance Costs (1,773) (1,679) Net Cash Provided by / (Used In) by Financing Activities 13,323 1,983 Net Increase / (Decrease) in Cash and Cash Equivalents 14,835 8,208
Cash and Cash Equivalents at beginning of Financial Year 65,115 56,907
Cash and Cash Equivalents at the end of Financial Year 28(a) 79,950 65,115
Financing Arrangements 28(c) 3,900 3,900
Restrictions on Cash Assets 36,808 43,466
The above cash flow statement should be read in conjunction with the accompanying notes.
Annual Report 2016/2017Page 4 85 Statement of Capital Works For the Year Ended 30 June 2017 Greater Bendigo City Council 2017 2016 Capital Works Areas Note $'000 $'000
Property Land 446 - Buildings 27,495 8,482 Total Property 20 27,941 8,482
Plant and Equipment Plant, Machinery and Equipment 4,053 3,850 Office Equipment, Furniture and Fittings 598 511 Artwork - 76 Fountains Statues and Monuments 156 61 Total Plant & Equipment 20 4,807 4,498
Infrastructure Land Improvements 390 4,047 Bridges 2,846 1,163 Sealed Roads 26,118 13,012 Unsealed Roads 3,006 2,051 Pathways 2,538 2,861 Drainage 7,040 4,796 Public Furniture and Fittings 5,649 3,131 Total Capital Infrastructure 20 47,587 31,061
Total Capital Works Expenditure 80,335 44,041
Represented by: New Assets 31,018 10,091 Renewal 29,474 23,241 Upgrade 8,449 2,017 Expansion 11,394 8,692 Total Capital Works Expenditure 80,335 44,041
86 Page 5 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Introduction The City of Greater Bendigo was established by an order of the Governor in Council on 10 September 1993 and is a body corporate. The Council's main office is located at 192-229 Lyttleton Terrace.
Statement of Compliance These financial statements are a general purpose financial report that consists of an Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, Statement of Capital Works and notes accompanying these financial statements. The general purpose financial report complies with applicable Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1989, and the Local Government (Planning and Reporting) Regulations 2014.
Note 1 Significant Accounting Policies (a) Basis of Accounting The accrual basis of accounting has been used in the preparation of these financial statements, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated judgements are based on professional judgement derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AAS's that have significant effects on the financial statements and estimates relate to:
- the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1 (m) ) - the determination of depreciation for buildings, infrastructure, plant and equipment (refer to Note 1 (n)) - the determination of employee provisions (refer to Note 1 (t))
Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives.
(b) Change in Accounting Policies There have been no changes in accounting policies from the previous period.
(c) Principles of Consolidation Council has considered the principles of AASB 10 Consolidated Financial Statements and have determined that there are no entities controlled by Council.
(d) Committees of Management Council has one Committee of Management. The Council asset it controls is included in the accounts of the Council. The revenues and expenses of the Committee is not significant, and has not been included in these financial statements.
Annual Report 2016/2017Page 6 87 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) (e) Accounting for Investments in Associates and Joint Arrangements Associates Associates are all entities over which Council has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Joint Arrangements Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has, rather than the legal structure of the joint arrangement.
(i) Joint Operations Council recognises its direct right to the, and its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate headings.
(ii) Joint Ventures Interests in joint ventures are accounted for using the equity method. Under this method, the interests are initially recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise Council’s share of the post-acquisition profits or losses and movements in other comprehensive income in profit or loss and other comprehensive income respectively.
(f) Revenue Recognition 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.
Rates and Charges Annual rates and charges are recognised as revenues when Council issues annual rates notices. Supplementary rates are recognised when a valuation and reassessment is completed and a supplementary rates notice issued.
Statutory Fees and Fines Statutory 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.
User Fees User fees are recognised as revenue when the service has been provided or the payment is received, whichever first occurs.
Grants Grant income is recognised when Council obtains control of the contribution. This 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.
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 9. 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.
Contributions Monetary and non monetary contributions are recognised as revenue when Council obtains control over the contributed asset.
88 Page 7 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) Sale of property, infrastructure, plant and equipment The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.
Interest Interest is recognised as it is earned.
Dividends Dividend revenue is recognised when the Council's right to receive payment is established.
Other Income Other income is measured at the fair value of the consideration received or receivable and is recognised when Council gains control over the right to receive the income.
(g) Fair Value Measurement Council measures certain assets and liabilities at fair value where required or permitted by Australian Accounting Standards. AASB 13 Fair value measurement, aims to improve consistency and reduce complexity by providing a definition of fair value and a single source of fair value measurement and disclosure requirements for use across Australian Accounting Standards.
AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value under AASB 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within a fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, Council has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, Council determines whether transfers have occurred between levels in the hierarchy by re- assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
(h) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original maturities of 90 days or less, net of outstanding bank overdrafts.
(i) Trade and Other Receivables Short term receivables are carried at invoice amount as amortised cost using the effective interest rate method would not impact the carrying value. A provision for doubtful debts is recognised when there is objective evidence that an impairment has occurred.
Annual Report 2016/2017Page 8 89 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) (j) Other Financial Assets Other financial assets are valued at fair value, being market value, at balance date. Term deposits are measured at amortised cost. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.
(k) Inventories Inventories held for distribution are measured at cost adjusted when applicable for any loss of service potential.
All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Where Inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition.
(l) Non-current Assets Classified as Held for Sale A non-current asset classified as held for sale (including disposal groups) is measured at the lower of its carrying amount and fair value less costs to sell, and are not subject to depreciation. Non-current assets, disposal groups and related liabilities and assets are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset's sale (or disposal group sale) is expected to be completed within 12 months from the date of classification.
(m) Recognition and Measurement of Property, Plant and Equipment, Infrastructure, Intangibles 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.
In accordance with Council's policy, the threshold limits detailed in Note 1(n) have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year.
Revaluation Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value, being the amount for which the assets could be exchanged between Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value, being the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. At balance date, the Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date, the class of asset was revalued.
Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation hierarchy will only occur if an external change in the restrictions or limitations of use on an asset result in changes to the permissible or practical highest and best use of the asset. Further details regarding the fair value hierarchy are disclosed at Note 20, Property, Infrastructure, Plant and Equipment.
In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis ranging from 1 to 5 years. The valuation is performed either by experienced council officers or independent experts.
90 Page 9 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) Revaluation (cont.) Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.
Land Under Roads Land under Roads acquired after 30 June 2008 is brought to account using the fair value basis. Council does not recognise land under roads that it controlled prior to that period in it's financial statements. Council recognises land under roads at fair value.
(n) Depreciation and Amortisation of Property, Infrastructure, Plant and Equipment and Intangibles Buildings, land improvements, plant and equipment, infrastructure, and other assets having limited useful lives are systematically depreciated over their useful lives to the Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed
Where assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component.
Road earthworks are not depreciated on the basis that they are assessed as not having a limited useful life. Straight line depreciation is charged based on the residual useful life as determined each year. Depreciation periods used are listed below and are consistent with the prior year unless otherwise stated.
Depreciation Threshold Asset Recognition Thresholds and Depreciation Periods Period Limit $000 Property land - $0 land improvements 10-80 years $5 Buildings 20-125 years $10-$20 Plant and Equipment plant and equipment 1-20 years $1 office equipment, furniture and fittings 1-20 years $1 artwork - $0 Infrastructure sealed roads 2-100 years $5-$20 unsealed roads 15-100 years $5-$10 pathways 25-50 years $5 bridges 100 years $10-$20 drainage 100 years $5-$20 public furniture and fittings 8-25 years $2-$5 fountains, statues and monuments 80-100 years $5 landfill 8 years $0 Intangibles landfill airspace 6-10 years $0
Annual Report 2016/2017 91 Page 10 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) (o) 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.
(p) Investment Property Investment property may be held to generate long-term rental yields. Investment property is measured initially at cost, including transaction costs. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefit in excess of the originally assessed performance of the asset will flow to the Council. Subsequent to initial recognition at cost, investment property is carried at fair value, determined annually by independent valuers. Changes to fair value are recorded in the comprehensive income statement in the period that they arise. Rental income from the leasing of investment properties is recognised in the comprehensive income statement on a straight line basis over the lease term.
(q) Impairment of Assets At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the comprehensive income statement, unless the asset is carried at the revalued amount in which case, the impairment loss is recognised directly against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.
(r) Trust Funds and Deposits Amounts received as deposits and retention amounts controlled by Council are recognised as trust funds until they are returned, transferred in accordance with the purpose of the receipt, or forfeited (refer to Note 24).
(s) Borrowings Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs. The measurement basis subsequent to initial recognition depends on whether the Council has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through the profit and loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method.
The classification depends on the nature and purpose of the interest bearing liabilities. The Council determines the classification of its interest bearing liabilities at initial recognition.
Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Except where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised.
Borrowing costs include interest on bank overdrafts, interest on borrowings, and finance lease charges.
92 Page 11 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) (t) Employee Costs and Benefits The calculation of employee costs and benefits includes all relevant on-costs and are calculated as follows at reporting date.
Wages and Salaries and Annual Leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be wholly settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.
Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
Long Service Leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. Current Liability - unconditional LSL is disclosed as a current liability even when the council does not expect to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.
The components of this current liability are measured at : - present value - component that is not expected to be wholly settled within 12 months. - nominal value - component that is expected to be wholly settled within 12 months.
Classification of Employee Costs Non-current liability - conditional LSL that has been accrued, where an employee is yet to reach a qualifying term of employment, is disclosed as a non - current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.
Termination Benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Council recognises termination benefits when it is demonstratably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance date are discounted to present value.
Employee Benefits On-Costs Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and long service leave accrued while on LSL taken in service) are recognised separately from provision for employee benefits.
Superannuation The amount charged to the Comprehensive Income Statement in respect of superannuation represents contributions made or due by the Corporation to the relevant superannuation plans in respect to the services of the Corporation’s staff (both past and present). Superannuation contributions are made to the plans based on the relevant rules of each plan and any relevant compulsory superannuation requirements that the Corporation is required to comply with.
Annual Report Page2016/2017 12 93 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) Sick Leave / Service Recognition Some employees benefit from a service recognition scheme which enables payment of a proportion of unused sick leave upon termination. The payment commences after 5 years of service with the percentage payment ranging from 10% of unused sick leave to 40% after 20 years of service.
The dollar value of the Service Recognition entitlements has been frozen as at 4 January 1996. Adjustments will be made annually in accordance with the Consumer Price Index for the preceding 12 months and paid to each relevant employee on termination.
Provision is also made for some employees entitled to payment of a portion of unused sick leave, pursuant to some employment contracts, on leaving the Council's employ.
At balance date, the liability is measured at the present value of estimated future cash flows to be made for the entitlement. All sick leave/service recognition liability is disclosed as current.
(u) Landfill Rehabilitation Provision Council is obligated to restore the Eaglehawk & White Hills Landfill sites to a particular standard. The forecast life of the 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. Accordingly, the estimation of the provision required is dependent on the accuracy of the forecast timing of the work, work required and related costs.
(v) Leases Operating Leases Lease payments for operating leases are recognised on a straight line basis.
(w) 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 Statement of Cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(x) Financial Guarantees Financial guarantee contracts are not recognised as a liability in the balance sheet unless the lender has exercised their right to call on the guarantee or Council has other reasons to believe that it is probably that that right will be exercised. Details of guarantees that Council has provided, that are not recognised in the balance sheet are disclosed at Note 32 Contingent Liabilities.
(y) Contingent Assets and Contingent Liabilities and Commitments Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.
Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal value by way of note and presented inclusive of the GST payable.
94 Page 13 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 1 Significant Accounting Policies (cont.) (z) Pending Accounting Standards The following new AAS's have been issued that are not mandatory for the 30 June 2017 reporting period. Council has assessed these pending standards and has identified the following potential impacts will flow from the application of these standards in future reporting periods.
Revenue from contracts with customers (AASB 15) (applies 2018/19) The standard shifts the focus from the transaction-level to a contract-based approach. Recognition is determined based on what the customer expects to be entitled to (rights and obligations), while measurement encompasses estimation by the entity of the amount expected to be entitled for performing under the contract. The full impact of this standard is not known however it is most likely to impact where contracts extend over time, where there are rights and obligations that may vary the timing or amount of the consideration, or where there are multiple performance elements. This has the potential to impact on the recognition of certain grant income.
Leases (AASB 16) (applies 2019/20) The classification of leases as either finance leases or operating leases is eliminated for lessees. Leases will be recognised in the Balance Sheet by capitalising the present value of the minimum lease payments and showing a 'right-of-use' asset, while future lease payments will be recognised as a financial liability. The nature of the expense recognised into he profit or loss will change. Rather than being shown as rent, or as leasing costs, it will be recognised as depreciation on the 'right-of-use' asset, and an interest charge on the lease liability. The interest charge will be calculated using the effective interest method, which will result in a gradual reduction of interest expense over the lease term.
(aa) Rounding Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars. Figures in the financial statement may not equate due to rounding.
(ab) Water Rights Water Rights are recorded at fair value. These are tradeable rights which were initially issued by the Local Water Authority, and can be traded to and from third parties. Australian Accounting Standards allow for these rights to be valued at market value.
Annual Report Page2016/2017 14 95 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 2 Budget Comparisons
The budget comparison notes compare Council’s financial plan, expressed through its annual budget, with actual performance. These notes are prepared to meet the requirements of the Local Government (Planning and Reporting) Regulations 2014 which requires explanation of any material variances. Council has adopted a materiality threshold with explanations provided if the variance is greater than 10 percent or is greater than $1,000,000. Explanations have not been provided for variations below this materiality threshold unless the variance is considered to be material because of its nature.
The budget figures detailed below are those adopted by Council on 29th June 2016. The budget was based on assumptions that were relevant at the time of adoption of the budget. Council sets guidelines and parameters for revenue and expense targets in this budget in order to meet Council’s planning 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.
(a) Income and Expenditure Budget Actual 2017 2017 Variance % Ref $'000 $'000 Income Rates and Charges 106,616 106,143 (473) 0% Statutory Fees and Fines 4,103 4,466 363 9% User Charges, Fees and Fines 24,223 24,650 427 2% Contributions - Cash 11,613 19,193 7,580 65% 1 Contributions - Non Monetary 11,846 20,342 8,496 72% 2 Found Assets - 21,782 21,782 100% 3 Government Grants - Operating 24,207 32,784 8,577 35% 4 Government Grants - Capital 26,367 14,125 (12,242) -46% 5 Interest on Investments 1,471 1,722 251 17% Other Income - 1,751 1,751 100% 6
Total Income 210,446 246,958 36,512 17%
Expenses Employee Costs 60,805 58,302 (2,503) -4% Contract Payments, Materials and Services 59,689 71,583 11,894 20% 8 Borrowing Costs 1,891 1,773 (118) -6% Depreciation and Amortisation 30,919 31,230 311 1% Bad and Doubtful Debts 130 731 601 462% Other Expenses - 5,035 5,035 100% 9 Net (Gain) / Loss on Disposal of Property, Plant and Equipment, Infrastructure 3,000 27,225 24,225 808% 7 Share of Net Profits / (Losses) of Associates 184 898 714 388%
Total Expenses 156,618 196,777 40,159 26%
Surplus for the Year 53,828 50,181 (3,647) -7%
96 Page 15 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 2 Budget Comparisons (cont.) (a) Income and Expenditure (cont.) (i) Explanation of Material Variations 1. Contributions - Cash Contributions of cash are higher than budget by $7.58M. This is due to receiving an unbudgeted contribution of $2.3M from the Bendigo Stadium towards the Bendigo Stadium Expansion project. Council also received an unbudgeted contribution of $4.4M from VicRoads for the Black Spot Program. 2. Contributions - Non-Monetary Council's Non-Monetary assets budget is set based on an assessment of the prior year actual contributions received. The majority of the variance to budget is related to the recognition of $6.5M worth of Tram Tracks from Bendigo Heritage Attractions. 3. Found Assets Council have recognised Dam Walls for the first time with a written down value of $18M. There was also $530K of small structure buildings identified through a review process Council undertook. This was to assist in breaking buildings down to component level within the asset management system. There was $1.6M of Artwork which has been brought to account this year as part of the valuations process. The balance of the difference is in Infrastructure. These items were unforeseen during the budget process. 4. Government Grants - Operating The variance of actual to budget is due to the Victorian Grants Commission paying $7.9M of the 2017/2018 grant in this financial year. 5. Government Grants - Capital The variance of actual to budget is due to the timing of funding received by State Government departments. Funding for the new Aquatic Centre $9M and the Bendigo Stadium expansion $2M were received late in 2015/2016 after the 2016/2017 budget was adopted. 6. Other Income The difference to budget is due to the actual income for Reimbursements and Property Rental being budgeted for in User Fees, Charges and Fines. User Fees, Charges and Fines is higher than budget this year in part because of planning permit fees increases introduced by State Government. 7. Net Gain / (Loss) on Disposal of Property, Plant and Equipment, Infrastructure Asset write off / disposals are over budget mostly due to the identification of $13M of Artwork previously recorded as Council's assets, but which were loaned items and required disposal. A further $2M of Bridges going over train tracks were taken over by Victrack and $5M for roads to replace with new roads as part of the renewal program.
8. Contract Payments, Materials and Services There are four main areas that have caused an overspend of $11.9M against budget: - Additional costs associated with running the Eaglehawk Landfill - in particular $4M was spent on landfill cover and increased levy to meet EPA requirements for landfill remediation work. - Higher than expected costs of $2.5M associated with exhibitions and higher levels of activity at Ulumbarra Theatre. These increases were offset by favourable variances to income in User Charges, Fees and Fines. - Unbudgeted expenditure of $2.3M on final works on the Ulumbarra Theatre which was budgeted for in 2015/2016. - Unbudgeted expenditure of $600K for the White Hills Landfill Rehabilitation Works.
9. Other Expenses Other expenses relate to the accounting treatment of the increase in the provision for rehabilitation recognised for the Eaglehawk and White Hills Landfill. The unbudgeted expense of $4.9M is an expense to recognise future rehabilitation and aftercare costs. This amount was not known when the budget was prepared.
Annual Report 2016/2017Page 16 97 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 2 Budget Comparisons (cont.) (b) Capital Works Budget Actual 2017 2017 Variance % Ref $'000 $'000
Property Land 500 446 (54) -11% Buildings 52,526 27,495 (25,031) -48% 1 Total Property 53,026 27,941 (25,085) -47%
Plant and Equipment Plant, Machinery and Equipment 4,437 4,053 (384) -9% Office Equipment, Furniture and Fittings 605 598 (7) -1% Artwork - - - 0% Fountains Statues and Monuments 20 156 136 680% Total Plant & Equipment 5,062 4,807 (255) -5%
Infrastructure Bridges 4,172 2,846 (1,326) -32% 2 Sealed Roads 14,889 26,118 11,229 75% 3 Land Improvements 12,824 390 (12,434) -97% 4 Unsealed Roads - 3,006 3,006 100% 5 Pathways 2,718 2,538 (180) -7% Drainage 3,941 7,040 3,099 79% 6 Public Furniture and Fittings 2,623 5,649 3,026 115% 7 Total Capital Infrastructure 41,167 47,587 6,420 16%
Total Capital Works Expenditure 99,255 80,335 (18,920) -19%
Represented by: New Assets 50,961 31,018 (19,943) -39% 8 Renewal 27,794 29,474 1,680 6% Upgrade 7,693 8,449 756 10% 9 Expansion 12,807 11,394 (1,413) -11% 10 Total Capital Works Expenditure 99,255 80,335 (18,920) -19%
98 Page 17 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 2 Budget Comparisons (cont.) (b) Capital Works (cont.) (i) Explanation of Material Variations Council sets the capital works budget at a project level, however when actual expenditure occurs it is allocated to each of the relevant asset classes constructed during that project. For example, a bridge project will be listed under the bridges asset class within the budget. However a bridge construction job will also consist of sealed road, drainage, kerb and non capital expenditure. This impacts underspends, for this example, within the bridge asset class, and an overspend in other asset classes. This occurs across infrastructure asset classes and in some instances buildings projects. This results in some significant variations across the capital works program when looking at variations within asset classes.
1. Buildings Underspend on Buildings is due to the a number of large construction projects being budgeted for during the 2016/2017 financial year, however $28M has being delayed and carried forward to 2017/2018. The most significant projects carried forward are the new Aquatic Centre $18M, the Bendigo Stadium expansion $3.9M, Strathfieldsaye Early Learning Centre $2.7M and $3.2M on various other smaller projects. 2. Bridges The Bridges budget included the Scott Street bridge project $3.4M. The project has been delayed and requires a carry forward of $955K to 2017/2018. The actual expenditure for the project has been allocated to other assets classes; $215K Sealed Roads, $114K Drainage and $95K of expenditure not capitalised as per Council's Capitalisation Policy. 3. Sealed Roads Overspend on Sealed Roads is due to the Bendigo Airport Runway project being allocated here. This project budget was allocated to Land Improvements. There was also $3M included in the budget for Unsealed Roads. After adjusting the Sealed Road budget for the misallocation, the variance would be a $1.7M overspend in Sealed Roads. This overspend is largely due to $1.8M being spent on black spot funding projects which were unknown at the time the budget was set.
4. Land Improvements The Land Improvements budget included the Bendigo Airport Runway project $9.2M. The actual expenditure against projects budgeted as Land Improvements is allocated to the following asset classes: $2.26M Public Furniture & Fittings; $10.3M Sealed Roads and $1.1M Drainage. 5. Unsealed Roads The $3M budget for Unsealed Roads was misallocated to the Sealed Roads budget. 6. Drainage Overspend on Drainage is $3M. Of this $1.1M for the Bendigo Airport Runway was budgeted for in Land Improvements; $447K for the Bendigo Stadium expansion budgeted for in Buildings; $343K for shoulder re- sheeting works budgeted for in Sealed Roads; and $175K for Garden of the Future was budgeted in Land Improvements. The remaining $900K overspend is made up of unbudgeted works of $417K relating to developer projects. 7. Public Furniture and Fittings The overspend is due to $2.3M for the Bendigo Airport Runway project lighting works which was budgeted for under Land Improvements. A further $890K was carried forward from 2015/2016 for the purchase of bins for the organic waster collection service.
8. New Assets The underspend is due to a number of large construction projects being delayed and carried forward to 2017/2018. The projects consist predominantly of the new Aquatic Centre project $16.4M and Garden of the Future project $1.4M.
9. Upgrade The overspend is due to the upgrade portion of the $1.6M expended on the unbudgeted Black Spot Program. This has been partially offset by the upgrade portion of $848K for Scott Street Bridge being delayed and carried forward to 2017/2018. 10. Expansion The underspend is due to the $1.4M Bendigo Stadium expansion project being delayed and carried forward to 2017/2018. Annual Report 2016/2017 99 Page 18 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 3 Rates and Charges 2017 2016 $'000 $'000 The Council declares rates on the Capital Improved Value (CIV) of all rateable property within the municipal district. The CIV is the value of the land and all it's improvements.
The valuation base used to calculate general rates for 2016/2017 was $19,915,731,000 (2015/2016 $18,594,370,000). The 2016/2017 rate in the CIV dollar was 0.0040424 (2015/2016, 0.004113).
General Rates 89,308 85,034 Organics Charge 2,702 - Supplementary Rates and Rate Adjustments 1,331 1,779 Garbage Charge 9,267 9,789 Recyclable Garbage Charge 3,287 3,142 Interest on Rates and Charges 248 227 Total Rates and Charges 106,143 99,971
The date of the last general valuation of land for rating purposes was 1 January 2016 and the valuation first applied to the rating period commencing 1 July 2016.
The date of the next general valuation of land for rating purposes within the municipal district is 1 January 2018 and the valuation will be first applied in the rating year commencing 1 July 2018.
Note 4 Statutory Fees and Fines 2017 2016 $'000 $'000 Building and Planning 1,860 1,433 Parking 268 226 Regulatory Service 191 95 Fines 1,355 1,318 Other Fees and Charges 792 746 Total Statutory Fees and Fines 4,466 3,818
100 Page 19 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 5 User Fees and Charges 2017 2016 $'000 $'000 Fees and Charges: Children's Services 3,605 3,856 Parking 3,301 3,268 Aged Services 931 679 Waste Disposal 6,427 6,000 Saleyard Yarding 983 1,106 Regulatory Service 1,152 1,074 Recreation 322 357 Ticket Income 4,293 5,238 Sales Income 714 960 Other Fees and Charges 2,922 2,981 Total User Fees and Charges 24,650 25,519
Note 6 Contributions 2017 2016 $'000 $'000 Contributions Cash 19,193 7,523
Non-Monetary - Developer Assets 13,783 17,019 Non Monetary - Donated/Gifted Assets 6,559 76 Total Non-Monetary Contributions 20,342 17,095 Total Contributions 39,535 24,618 Contributions of non monetary assets were received and brought to account in relation to the following asset classes. Artworks - 76 Land 2,500 3,902 Sealed Roads 11,706 6,700 Unsealed Roads 20 29 Pathways 2,159 2,320 Bridges 124 - Drainage 3,833 4,068 Total Non-Monetary Contributions 20,342 17,095
Note 7 Net Gain/(Loss) on Disposal of Property, Infrastructure, Plant and Equipment 2017 2016 $'000 $'000 Proceeds of Sale 731 1,103 Written Down Value of Assets Disposed (14,630) (10,084) Disposal of Artworks on Loan (12,973) - Impairment of Assets Held for Sale (353) - Total Net Gain/(Loss) on Disposal of Property, Infrastructure, Plant and Equipment (27,225) (8,981) Written Down Value (WDV) of Assets Disposed - Council disposed of 46 buildings with a WDV of $2.7M. Council also transferred ownership of 17 residential units in Heathcote with a combined WDV of $1.8M. It was also determined during the year that all road bridges over train tracks are in fact managed by Vic Track, with $1.9M of bridges removed from Council's asset register. $2.4M of WIP at 30 June 2016 was not capitalised, and disposed during 2016/2017 in line with Council's Capitalisation Policy. The remainder relates to the disposal of infrastructure assets demolished and renewed. Disposal of Artworks on Loan - $12.97M of Artworks were determined as part of a rolling revaluation process to not be Council owned (loaned pieces of Artwork). These items have been disposed of during the 2016/2017 financial year.
Annual Report Page2016/2017 20 101 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 8 Grants 2017 2016 $'000 $'000 Grants were received in respect of the following: Summary of Grants Commonwealth Funded Grants 36,327 16,225 State Funded Grants 10,582 35,247 Total Grants Received 46,909 51,472 Operating Grants Recurrent - Commonwealth Government Victorian Grants Commission - Unallocated * 18,240 5,878 Victorian Grants Commission - Local Roads * 4,883 1,602 Aged Services 3,968 - Health Services - Immunisation 11 21 Recurrent - State Government Aged 1,253 6,003 Youth 71 73 Health Services - Immunisation 92 97 Tourism / Events Projects 81 231 School Crossing Supervisors 177 174 Maternal and Child Health 776 693 Family and Children 446 430 Rural Access Initiative 63 240 Arts & Culture 380 239 Environment 56 56 Recreation 35 - Community Safety 230 - Emergency Management 60 96 Total Recurrent Operating Grants 30,822 15,833 Non Recurrent - Commonwealth Government Aged 578 - Arts and Culture 54 1,280 Street lighting - 1,300 Community Resilience 181 7 Non Recurrent - State Government Aged 196 90 Arts & Culture 100 456 Community and Strategy Planning 158 - Business Development 8 88 Cultural Diversity - 25 Tourism / Events Projects - 20 Transport 82 30 Youth 153 213 Environment 32 - Recreation / Healthy Communities 80 - Infrastructure - Drainage 40 - Heritage 300 - Total Non Recurrent Operating Grants 1,962 3,509 Total Operating Grants 32,784 19,342 Capital Grants Recurrent - Commonwealth Government Roads to Recovery 3,665 4,535 Total Recurrent Capital Grants 3,665 4,535 * $7.9M of the 2017/18 grant was received in 2016/17 & $5.8M of the 2015/16 grant was received in 2014/15.
102 Page 21 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 8 Grants (cont.) 2017 2016 $'000 $'000 Non Recurrent - Commonwealth Government Heritage - 76 Environment 60 36 Airport 3,600 1,200 Infrastructure - Bridges 452 290 Plant, Machinery & Equipment 489 Recreation 146 Non Recurrent - State Government Arts & Culture - 1,300 Street lighting - (124) Recreation 2,880 19,207 Heritage 1,000 17 Waste 60 440 Environment - 227 Airport 1,200 4,297 Family and Children 284 129 Infrastructure - Transport (70) 500 Open Space 144 - Plant, Equipment & Machinery 132 - Tourism / Events 83 - Total Non Recurrent Capital Grants 10,460 27,595 Total Capital Grants 14,125 32,130 Total Grants 46,909 51,472
Unspent Grants received on condition that they be spent in a specific matter* Balance at start of year 18,975 8,740 Received during the financial year and remained unspent at balance date 11,194 18,975 Received in prior years and spent during the financial year (16,975) (8,740) Balance at year end 13,194 18,975 * Note that not all unexpended grants are transferred to Other Reserves
Note 9 Other Income 2017 2016 Note $'000 $'000 Net Increase in Net Market Value of Forestry Plantation 21 6 1 Net Increase in Net Market Value of Water Rights 22 11 32 Property Rental 1,567 1,520 Reimbursements 167 182 Total Other Revenue 1,751 1,735
Note 10 (a) Employee Costs 2017 2016 $'000 $'000 Wages and Salaries 48,363 45,154 Annual, Sick and Long Service Leave 7,204 7,446 Superannuation 4,923 4,717 WorkCover 537 1,718 Fringe Benefit Tax 240 255 61,267 59,290 Less Amounts Capitalised 2,965 2,380 Total Employee Costs 58,302 56,910
Annual Report Page2016/2017 22 103 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 10 (b) Superannuation 2017 2016 $'000 $'000 Council made contributions to the following funds:
Defined Benefit Fund Employer contributions to Local Authorities Superannuation Fund (Vision Super) 556 534 556 534
Employer contributions payable at reporting date. - 132
Accumulation Funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) 2,993 2,765 Employer contributions - other funds 1,372 1,242 4,365 4,007
Employer contributions payable at reporting date. 166 332
Refer to Note 31 for further information relating to Council's superannuation obligations.
Note 11 Contract Payments, Materials and Services 2017 2016 $'000 $'000 Contract Payments 35,257 30,379 Administration Expenses 8,041 9,330 Utility Expenses 4,790 5,246 Materials, Concrete Products and Hardware 9,922 9,406 Maintenance and Consumables 8,945 8,738 Plant and Equipment Operating Expenses 7,329 7,465 Contributions and Donations 1,946 2,080 Insurance 1,499 1,536 77,729 74,180 Less Amounts Capitalised 6,146 5,858 Total Contract Payments, Materials and Services 71,583 68,322
Note 12 Depreciation and Amortisation 2017 2016 $'000 $'000 Land Improvements 2,165 2,067 Buildings 3,852 3,890 Plant and Equipment 2,455 2,384 Office Equipment, Furniture and Fittings 658 672 Sealed Roads 11,395 10,865 Unsealed Roads 1,867 1,865 Pathways 3,001 2,884 Bridges 770 775 Drainage 2,568 2,492 Public Furniture and Fittings 1,458 1,215 Fountains, Statues and Monuments 100 100 Landfill 601 600 Total Depreciation 30,890 29,809 Intangible Assets 340 340 Total Depreciation and Amortisation 31,230 30,149 Refer to Note 20 and 22 for a more detailed breakdown of depreciation and amortisation charges.
104 Page 23 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 13 Other Item of Expense 2017 2016 $'000 $'000 Auditors' Remuneration - VAGO - audit of the financial statements, performance statement and grant acquittals 54 52 Auditors' Remuneration - Internal 35 34 Discount Rate Movement of Landfill Provision (557) 498 Landfill Rehabilitation and Aftercare 5,503 2,112 Total Other Expenses 5,035 2,696
Note 14 Investments in Associates 2017 2016 $'000 $'000 Investments in Associates accounted for under the equity method are: North Central Goldfields Regional Library Corporation (refer Note 1 (e))
The Council is a member of the North Central Goldfields Regional Library Corporation. The Council has a 61.29% share of the net assets (61.32% 2016). At 30 June 2017 Council's equity in the corporation was $3,221,516 (30 June 2016 $4,119,759).
Council’s Share of Accumulated Surplus/(Deficit) and Contributed Capital
Council’s share at the beginning of the year 3,394 3,401 % share of equity adjustment (1) (8) Share of reported surplus / (deficit) (896) 100 Transfers to (from) reserves (27) (99) Council’s share at end of the year 2,470 3,394
Council’s Share of Reserves
Council’s share at the beginning of the year 726 629 % share of equity adjustment (1) (2) Transfers to (from) reserves (27) 99 Council’s share at end of the year 698 726
Movement in Carrying Value
Carrying value at beginning of the year 4,120 4,030 % share of equity adjustment (2) (10) Share of reported surplus / (deficit) (896) 100 Carrying value at end of the year 3,222 4,120
Council’s Share of Expenditure Commitments
Operating Commitments 233 313 Capital Commitments - - Council’s Share of Expenditure Commitments 233 313
Annual Report Page2016/2017 24 105 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 15 Cash and Cash Equivalents 2017 2016 Note $'000 $'000 Current Cash on Hand 30 30 Cash at Bank 3,884 10,584 Term Deposits 76,036 54,501 Total Cash and Cash Equivalents 28 79,950 65,115
Restricted Funds Council's cash and cash equivalents are subject to external restrictions that limit amounts available for discretionary or future use. These include: - Statutory Reserve funds allocated for specific future purposes 27 7,040 6,379 - Trust funds 24 3,112 3,151 - Other Reserves - Unexpended Grants & Donations 27 13,011 18,975 Total Restricted Funds 23,163 28,505
Total Unrestricted Cash and Cash Equivalents 56,787 36,610
Intended Allocations Although not externally restricted the following amounts have been allocated for specific future purposes by Council - Other Reserves excluding Unexpended Grant & Donation Reserve 13,645 14,962 - Cash held to fund carried forward capital works 29,831 7,800 - Future Projects where unspent funding has been received 749 650 Total Funds Subject to Intended Allocations 44,225 23,412 Refer also to Note 16 for details of other financial assets held by Council.
Note 16 Other Financial Assets 2017 2016 $'000 $'000 Term Deposits - 34 Total Other Financial Assets - 34
Note 17 Non-Current Assets Held for Sale 2017 2016 $'000 $'000 Written Down Value of Assets transferred to Held for Sale 688 - Less: Impairment 7 (353) Total Non-Current Assets Held for Sale 335 -
Note 18 Other Assets 2017 2016 $'000 $'000 Current Accrued Income 903 1,141 Prepayments 1,050 1,133 Total Other Assets 1,953 2,274
106 Page 25 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 19 Trade and Other Receivables 2017 2016 $'000 $'000 Current Statutory Receivables Rates Debtors 1,286 1,274 Infringement Debtors 2,124 2,569 Allowance for Doubtful Debts - Infringements (77) (95) GST Receivable 1,691 1,226 Non Statutory Receivables Footpath, Kerb and Channel Debtors 263 2 Loans to Community Organisations 14 69 Loans for Heritage Restoration Works 40 46 General Debtors - Grants 2,833 12,525 General Debtors - Other 7,946 2,126 Allowance for Doubtful Debts - General Debtors (15) (15) Total Current 16,105 19,727
Non-Current Non Statutory Receivables Footpath, Kerb and Channel Debtors 1 1 Loans to Community Organisations 37 37 Loans for Heritage Restoration Works 47 46 Total Non-Current 85 84
Total Trade and Other Receivables 16,190 19,811 a) Ageing of Receivables At balance date other debtors representing financial assets were past due but not impaired. The ageing of the Council's trade & other receivables (excluding statutory receivables) was: Current (not yet due) 8,772 12,153 Past due by up to 30 days 416 2,103 Past due between 31 and 180 days 264 307 Past due between 181 and 365 days 1,508 16 Past due by more than 1 year 206 258 Total Trade & Other Receivables 11,166 14,837 b) Movement in Provisions for Doubtful Debts Balance at the beginning of the year 110 149 New Provisions recognised during the year - - Amounts already provided for and written off as uncollectible (18) (39) Amounts provided for but recovered during the year - - Balance at End of Year 92 110 c) Ageing of Individually Impaired Receivables At balance date, other debtors representing financial assets with a nominal value of $91,553 (2016: $110,000) were impaired. The amount of the provision raised against these debtors was $91,553 (2016: $110,000). They individually have been impaired as a result of their doubtful collection. Many of the long outstanding past due amounts have been lodged with Council's debt collectors or are on payment arrangements. The ageing of receivables that have been individually determined as impaired at reporting date was: Past due between 181 and 365 days - - Past due by more than 1 year 92 110 Total Trade & Other Receivables 92 110
Annual Report Page2016/2017 26 107 Page 27 83,541 45,656 851,522 214,224 233,377 $'000 1,428,320
At Fair Value At 30 June30 2017 211 (687) 4,724
(27,603)
50,324 (582)
(55,364) - - (3,213) (3,852) (30,890) (23,825) $'000 $'000 $'000 (13,844) (8,178)
(429) (2,725) (2,427) 5 on Depreciation Disposal Transfers - 6,021 5,679 1,513 14,385 23,500 45,656 31,266 10,287 $'000 $'000
- - (18) (965) (1,444) (2,427) 21,782 19,681 $'000 $'000
- - - (211) 2,500 (4,829) 20,342 17,842 June 2017 ent (50,324) (55,364) $'000 $'000
1,570
531 - - 156 446 4,651 47,587 27,495 75,238 80,335 75,238 $'000 $'000
78 9,565 18,566 28,209 28,209 206,610 224,412 794,165 $'000 $'000 1,341,541
At Fair Value At 30 June 2016 June 30 Acquisitions Contributions Found Revaluati Opening WIP Opening Additions TransfersOffs Write WIP Closing Notes to the Financial Report for the Year Ended 30 Ended Year the for Report Financial the to Notes Equipm and Plant Infrastructure, Property, 20 Note Total Infrastructure PlantEquipmentand Greater Bendigo City Council City Bendigo Greater pment Equi and Plant Infrastructure, Property, of Summary Land Summaryof Work in Progress Buildings Buildings PlantEquipmentand 88,145 Infrastructure WorkProgressin
108 FINANCIAL STATEMENTS 2016/2017 - - - 720 Page 28 (555) 3,412 2,500 1,086 (4,099) (4,839) 54,340 27,941 (16,060) $'000 560,609 614,949 440,587 478,867 Total Total Property
------(965) 9,565 9,565 (4,829) 31,266 21,701 31,266 $'000 Workin Progress
31,751
(15,785) (136,082)
(3,852)
(120,022)
- - - - - 720 (555) 3,412 1,312 1,086 (3,852) (3,445) 26,072 25,025 (16,060) 344,434 369,459 224,412 233,377 $'000 Total Total Buildings
27,495
96 64 - - - - - (52) - - - - 228 148 (793) (144) 1,128 8,825 8,032 8,773 8,128 (1,921) $'000 Specialised
(15,785)
(136,082)
(120,022)
Buildings- Non - - - - - 656 655 (198) 1,569 2,079 (8,519) (9,214) (2,722) 22,377 23,587 (88,763) (79,549) $'000 212,384 235,971 132,835 147,208 Buildings- Specialised
------431 (767) (986) (357) 1,843 2,231 2,567 (7,494) (6,994) 82,804 78,041 (47,415) 123,225 125,456 $'000 Heritage Buildings
(1,524)
------446 7,614 $'000 206,610 214,224
(40,421) Total Land Total ------790 790 6,132 6,922 6,132 6,922 $'000 Roads Land UnderLand 206,610 214,224
(582) 2,500 5,679
(429)
18 ------(326) 6,417 6,417 (4,127) (4,435) 10,852 10,852 $'000 June 2017 ent (cont.) ent Land -Land Non Specialised
------446 (103) 1,710 5,661 3,545 11,259 189,626 200,885 189,626 200,885 $'000 Land -Land Specialised
Notes to the Financial Report for the Year Ended 30 Ended Year the for Report Financial the to Notes Equipm and Plant Infrastructure, Property, 20 Note Greater Bendigo City Council City Bendigo Greater Buildings and Land At fair value 1 July 2016 Accumulated depreciation at 1 July 2016 Movements in fair value Acquisition of assets at fair value Contributed assets Found assets Revaluation increments/decrements Fair value of assets disposed Impairment losses recognised in operating result Transfers Movements in accumulated depreciation Depreciation and amortisation Contributed assets Found assets Revaluation increments/decrements Accumulated depreciation of disposals Impairment losses recognised in operating result Transfers At fair value 30 June 2017 Accumulated depreciation at 30 June 2017
Annual Report 2016/2017 109 Page 29 - - (90) - - - 220 (2,813) (1,864) 88,223 83,546 $'000 Total Total
5 5 78 78 (18) ------(73) - 156 (211) $'000 (15,081) (3,213) (20,470) (22,334) 105,880
1,219 108,693 1,660 5,801
4,807 30 - - - (90) - - - - 100 825 211 220 (100) 9,716 5,918 1,136 7,084 (3,798) (3,768) 10,852 $'000 Monuments WorkProgressin Statuesand
------1,560 4,976 (6,437) 62,783 56,346 62,783 56,346 (12,973) $'000
(3) ------455 598 142 (143) (658) (519) 8,321 8,776 2,764 2,700 (5,557) (6,076) $'000 Office Office Fittings Artworks Furniture& Equipment,
June 2017 ent (cont.) ent 3 ------4,053 1,077 2,106 (1,947) (2,455) (1,375) 27,795 29,901 16,680 17,411 (11,115) (12,490) $'000 Plantand Equipment
Notes to the Financial Report for the Year Ended 30 Ended Year the for Report Financial the to Notes Equipm and Plant Infrastructure, Property, 20 Note Greater Bendigo City Council City Bendigo Greater Equipment and Plant At fair value 1 July 2016 Accumulated depreciation at 1 July 2016 Movements in fair value Acquisition of assets at fair value Found assets Revaluation increments/decrements Donated assets Fair value of assets disposed Impairment losses recognised in operating result Transfers Movements in accumulated depreciation Depreciation and amortisation Depreciation of found assets Revaluation increments/decrements Accumulated depreciation of disposals Impairment losses recognised in operating result Transfers At fair value 30 June 2017 Accumulated depreciation at 30 June 2017
110 FINANCIAL STATEMENTS 2016/2017 Page 30 Page - - - - 3,931 (2,418) (8,739) 47,587 26,581 12,160 33,522 89,839 (13,841) (21,782) (23,825) (36,663) 812,731 865,907 $'000 Total Total 1,214,051 1,303,890
Infrastructure ------(4,181) 18,566 14,385 18,566 14,385 $'000 Work in Progress re years. re
(401,320)
(437,983)
------(601) (601) (601) 4,206 3,605 4,807 4,807 (1,202) $'000
47,587
(1,444)
(50,324)
68 - - - - - (14) - - - 350 (518) 6,536 6,986 (1,458) (1,122) 16,792 22,206 28,587 35,123 (11,795) (12,917) $'000 & Fittings Landfill
Public Furniture Furniture Public ------461 198 (703) (371) (644) (807) 2,605 1,080 (2,165) 31,536 31,363 60,984 60,613 (29,448) (29,250) $'000 Land
Improvements (9) - - - - 185 (871) (499) (627) 3,842 6,592 (2,568) 39,259 (15,258) (60,648) (75,906) 195,531 219,532 256,179 295,438 $'000
(4) - - - - 398 194 (101) (492) (335) 6,167 2,879 (3,404) 83,058 85,821 $'000 (40,575) (43,979) 123,633 129,800 (12,367)
30,323
(6) - - - - 546 130 657 (276) (279) (770) 2,038 3,369 1,738 (2,575) (5,646) 44,297 43,760 76,633 74,058 (32,336) (30,298) $'000 Major Culverts Pathways Drainage* Bridges &
1,062
2,163 (3,001)
20 53 - - - - - (26) 390 715 1,182 1,101 3,056 1,437 (2,407) (1,867) 46,834 48,271 31,669 33,496 (15,165) (14,775) $'000 Roads June 2017 June ent (cont.) Unsealed
further significant found assets of this nature in futu in nature this of assets found significant further be Walls. Dam of nition will there that anticipated not is It - - - 943 (354) 2,479 6,419 (8,720) (2,249) (2,605) 20,426 29,880 43,567 (10,161) (11,395) (18,904) $'000 597,828 641,395 387,076 411,739 (210,752) (229,656) Roads Sealed
Notes to the Financial Report for the Year Ended 30 Note 20 Property, Infrastructure, Plant and Equipm Greater Bendigo City Council City Bendigo Greater Infrastructure recog initial to relates primarily assets Found - Drainage * At fair value 1 July 2016 fairAt value 1 July Accumulated depreciation 2016 at 1 July Movements in fair value Acquisition of assets at fair value Found assets Contributed assets Revaluation increments/decrements Fair value of assets disposed Impairment losses recognised operating in result Transfers Movements in accumulated depreciation Depreciation and amortisation Found assets Contributed assets Revaluation increments/decrements Accumulated depreciation of disposals Impairment losses recognised operating in result Transfers fairAt value 30 June 2017 Accumulated depreciation at 30 June 2017
Annual Report 2016/2017 111 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 20 Property, Plant, Equipment and Infrastructure (cont.) Valuation of Land, Heritage and Non Specialised Buildings Valuation of land, heritage and non specialised buildings were undertaken by Mr James Collins, AAPI Certified Practicing Valuer, Senior Valuer at the City of Greater Bendigo at 30 June 2017. The valuation of these asset classes is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. Where land use is restricted through existing planning provisions the valuation is reduced to reflect this limitation. This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement.
Specialised land is valued at fair value using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services. This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement.
Any significant movements in the unobservable inputs for land and land under roads will have a significant impact on the fair value of these assets.
The date of the current valuation is detailed in the following table.
Details of the Council’s land and buildings and information about the fair value hierarchy as at 30 June 2017 are as follows: Level 1 Level 2 Level 3 DoV $'000 $'000 $'000 M/Y Land - Non Specialised - 6,417 - Jun-17 Land - Specialised - - 200,885 Jun-17 Land Under Roads - - 6,922 Jun-17 Buildings - Non Specialised - 8,128 - Jun-17 Buildings - Specialised - - 147,208 Jun-17 Buildings - Heritage - - 78,041 Jun-17 - 14,545 433,056
Valuation of Infrastructure and Specialised Buildings Valuation of infrastructure assets and specialised buildings has been determined in accordance with an independent valuation undertaken by Mr Brett Martini, Certified Practicing Engineer.
The date of the current valuation is detailed in the following table.
The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation.
Details of the Council’s infrastructure and information about the fair value hierarchy as at 30 June 2017 are as follows: Level 1 Level 2 Level 3 DoV $'000 $'000 $'000 M/Y Sealed Roads - - 411,739 Jun-17 Unsealed Roads - - 33,496 Jun-17 Pathways - - 85,821 Jun-17 Bridges and Major Culverts - - 43,760 Jun-17 Drainage - - 219,532 Jun-17 Land Improvements - - 31,363 Jun-15 Public Furniture and Fittings - - 22,206 Jun-15 Landfill - - 3,605 N/A - - 851,522
112 Page 31 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 20 Property, Plant, Equipment and Infrastructure (cont.) Description of Significant Unobservable Inputs into Level 3 Valuations
Specialised land and land under roads is valued using a market based direct comparison technique. Significant unobservable inputs include the extent and impact of restriction of use and the market cost of land per square metre. The extent and impact of restrictions on use varies and results in a reduction to surrounding land values between 10% and 95%. The market value of land varies significantly depending on the location of the land and the current market conditions. Currently land values range between $1 and $800 per square metre.
Specialised buildings are valued using a depreciated replacement cost technique. Significant unobservable inputs include the current replacement cost and remaining useful lives of buildings. Current replacement cost is calculated on a square metre basis and ranges from $125 to $21,000 per square metre. The remaining useful lives of buildings are determined on the basis of the current condition of buildings and vary from 2 years to 120 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of buildings are sensitive to changes in expectations or requirements that could either shorten or extend the useful lives of buildings.
Infrastructure assets are valued based on the depreciated replacement cost. Significant unobservable inputs include the current replacement cost and remaining useful lives of infrastructure. The remaining useful lives of infrastructure assets are determined on the basis of the current condition of the asset and vary from 2 years to 100 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of infrastructure are sensitive to changes in use, expectations or requirements that could either shorten or extend the useful lives of infrastructure assets.
Reconciliation of Specialised Land 2017 2016 $'000 $'000 Land Under Roads 6,922 6,132 Land 200,885 189,626 Total Specialised land 207,807 195,758
Annual Report 2016/2017Page113 32 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 21 Forestry Plantations 2017 2016 $'000 $'000 Forestry Plantations - at Valuation 63 57 Total Forestry Plantations 63 57
Net Increase / (Decrease) in Net Market Value of Forestry Plantation 6 1
Information Pertaining to Forestry Plantations Two separate sites cover an area of 206 Hectares. The Plantations consist of approximately 200,000 trees aging from 12 years to 16 years. The trees have been valued at net market value as at 30 June 2017 by Council's Senior Valuer, Mr. James Collins, AAPI, Grad Dip Ag.Econ.
Note 22 Intangible Assets 2017 2016 $'000 $'000 Water Rights - at Valuation 216 205 Landfill Air Space 4,004 2,378 Total Intangible Assets 4,220 2,583
Information Pertaining to Water Rights The water rights (369 Megalitres) has been valued at current market value as at 30 June 2017 by Council's Senior Valuer, Mr. James Collins, AAPI, Accredited Specialist Water Valuer.
Information Pertaining to Landfill Air Space An air space asset is an intangible asset that is measured based on the net present value of the future cash flows required to meet the rehabilitation requirements detailed in the landfill licencing agreement. Council has recognised a landfill air space intangible asset for cells 4 & 5 located at the Eaglehawk landfill site. This initial recognition is consistent with the related provision for rehabilitation of cells 4 & 5 in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets. Landfill Water Total Air Space Rights Note $'000 $'000 $'000 Gross Carrying Amount Balance at 1 July 2016 2,718 205 2,923 Additions 1,966 - 1,966 Net Increase in Net Market Value 9 - 11 11 Balance at 1 July 2017 4,684 216 4,900
Accumulated Amortisation & Impairment Balance at 1 July 2016 (340) - (340) Amortisation Expense 12 (340) - (340) Balance at 1 July 2017 (680) - (680)
Note 23 Trade and Other Payables 2017 2016 $'000 $'000 Trade Payables 6,829 5,514 Sundry Creditors 6,197 6,552 Accrued Expenses 4,558 2,016 Total Trade and Other Payables 17,584 14,082
114 Page 33 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 24 Trust Funds and Deposits 2017 2016 $'000 $'000 Contract Retention Amounts 2 50 Refundable Key Deposits 63 60 Ticket Trust Fund 660 811 Refundable Security Holding Deposits 2,164 1,908 Steam Train Asset Trust 35 34 Bendigo Art Gallery Board Trust - 7 Tourism Bookings Trust 100 190 Facilities Hire Bond 15 15 Sundry 73 76 Total Trust Funds 3,112 3,151
Purpose and nature of items Contract Retention Amounts - Council has a contractual right to retain certain amounts until a contractor has met certain requirements or a related warrant or defect period has elapsed. Subject to the satisfactory completion of the contractual obligations, or the elapsing of time, these amounts will be paid to the relevant contractor in line with Council's contractual obligations. Refundable Key Deposits / Security Holding Deposits / Facilities Hire Bond - Deposits are taken by Council as a form of surety in a number of circumstances, including in relation to subdivision works and the use of civic facilities. Ticket Trust Fund / Tourism Bookings Trust - Council sells tickets for a number of events, these amounts are transferred to the relevant parties at the completion of the event. Steam Train Asset Trust - In 2005 Council leased a Steam Locomotive to Steamrail Victoria Inc. At the time a surety bond of $20,000 was placed in a truct account in the name of Council with any interest to go to Steamrail Victoria Inc. at the end of the agreement. Sundry - Funds received from closed committees or programs where the donations are to be used for a specific purpose. Unclaimed monies also make up part of this trust.
Note 25 Provisions Annual Long Sick Leave Service Landfill Total Leave Service Contracted Recognition Restoration Leave Employees
$'000 $'000 $'000 $'000 $'000 $'000 2017 Balance at beginning of the 4,679 9,958 288 161 8,102 23,188 financial year Additional provisions 3,962 1,508 33 10 7,469 12,982 Amounts used (3,943) (1,422) (37) (29) - (5,431) Decrease in the discounted (16) (356) (13) (6) (557) (948) amount arising because of time and the effect of any change in the discount rate Balance at End of the Financial Year 4,682 9,688 271 136 15,014 29,791
2016 Balance at beginning of the 4,629 9,989 325 169 5,491 20,603 financial year Additional provisions 3,626 900 13 - 2,113 6,652 Amounts used (3,571) (1,184) (35) - - (4,790) Increase in the discounted (5) 253 (15) (8) 498 723 amount arising because of time and the effect of any change in the discount rate Balance at End of the Financial Year 4,679 9,958 288 161 8,102 23,188
Annual Report 2016/2017Page 34 115 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 25 Provisions (cont.) 2017 2016 $'000 $'000 (a) Total Provisions Current 17,273 15,499 Non-Current 12,518 7,689 Total Provisions 29,791 23,188
(b) Employee Provisions Current Provisions Expected to be Settled Within 12 Months Annual Leave 3,563 3,555 Long Service Leave 1,408 641 Sick Leave - Contracted Employees 23 24 Service Recognition 12 14 5,006 4,234 Current Provisions Expected to be Settled After 12 Months Annual Leave 1,119 1,124 Long Service Leave 6,669 7,632 Sick Leave - Contracted Employees 247 264 Service Recognition 124 147 8,159 9,167 Total Current 13,165 13,401
Non-Current Long Service Leave 1,612 1,685 Total Non-Current 1,612 1,685 Total Employee Provisions 14,777 15,086
The following assumptions were adopted in measuring the present value of employee benefits: - Weighted average increase in employee costs 3.81% 4.13% - Weighted average discount rates 2.61% 1.99% - Weighted average settlement period (Years) 17 17
(c) Landfill Restoration Current 4,108 2,098 Non-Current 10,906 6,004 Total Landfill Restoration 15,014 8,102
The following assumptions were adopted in measuring the present value of the landfill restoration: - Weighted average increase in landfill restoration costs 2.00% 1.99% - Weighted average discount rates 2.61% 2.30% - Weighted average settlement period (Years) 30 30
Under the current EPA Environmental Licence the Council is obligated to restore landfill sites to a particular standard. Provision has been made for the existing Eaglehawk site at $9,897,084 (2016: $8,101,328) and the no longer active White Hills site is $5,117,232 (2016: $Nil). A rehabilitation plan for the White Hills site was developed during the 2016/2017 financial year. Through this process an accurate calculation for the cost to rehabilitate this site was determined. Previously information was not available to provide an accurate calculation of what the rehabilitation costs would be, therefore the White Hills site was listed as a contingent liability. Current engineering projections indicate that the Eaglehawk landfill site will cease operation in 2021 and restoration work is expected to commence in 2017/2018. The forecast life of the Eaglehawk landfill site is based on current estimates of remaining capacity and the forecast rate of infill. The provision for each 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. Accordingly, the estimation of the provision required is dependent on the accuracy of the forecast timing of the work, work required and related costs.
116 Page 35 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 26 Interest Bearing Loans and Borrowings Amount Borrowed Rate 2017 2016 Lender $'000 % Period $'000 $'000 Current Bendigo Bank * 2,770 6.39 2009/2019 340 319 National Australia Bank * 10,700 5.84 2012/2027 615 581 National Australia Bank * 11,300 5.66 2013/2028 618 584 National Australia Bank * 5,000 3.54 2016/2025 497 480 National Australia Bank * 17,000 3.49 2017/2026 1,635 - 3,705 1,964
Non-Current Bendigo Bank * 2,770 6.39 2009/2019 363 703 National Australia Bank * 10,700 5.84 2012/2027 7,493 8,109 National Australia Bank * 11,300 5.66 2013/2028 8,534 9,152 National Australia Trustees Limited (as Trustee 11,000 4.65 2015/2021 11,000 11,000 for the LGFV Program Trust) * National Australia Bank * 5,000 3.54 2016/2025 4,023 4,520 National Australia Bank * 17,000 3.49 2017/2026 15,366 Total Non-Current 46,779 33,484
Total Interest Bearing Loans and Borrowings 50,484 35,448
* Interest Bearing Loans and Borrowings are secured against a charge over Council's Rate Revenue.
The maturity profile for Council's Borrowings is: Not later than one year 3,705 1,964 Later than one year and not later than five years 26,392 8,186 Later than five years 20,387 25,298 Total Interest Bearing Loans and Borrowings 50,484 35,448
Annual Report Page2016/2017 36 117 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 27 Reserves Balance at beginning of Increment Balance at end of reporting period (decrement) reporting period $'000 $'000 $'000 (a) Asset Revaluation Reserves 2017 Property Land 130,546 5,680 136,226 Buildings 99,251 10,286 109,537 Plant & Equipment 1,541 - 1,541 Library Resources 820 - 820 Artwork 42,331 4,976 47,307 274,489 20,942 295,431 Infrastructure Roads, Bridges & Pathways 359,939 2,883 362,822 Drainage 60,214 (1,370) 58,844 Public Furniture & Fittings, Statues and Monuments 10,476 1,045 11,521 Land Improvements 11,003 - 11,003 441,632 2,558 444,190 Total Asset Revaluation Reserves 716,121 23,500 739,621
2016 Property Land 130,546 - 130,546 Buildings 99,251 - 99,251 Plant & Equipment 1,541 - 1,541 Library Resources 820 - 820 Artwork 42,331 - 42,331 274,489 - 274,489 Infrastructure Roads, Bridges & Pathways 344,883 15,056 359,939 Drainage 61,228 (1,014) 60,214 Public Furniture & Fittings, Statues and Monuments 10,476 - 10,476 Land Improvements 11,003 - 11,003 427,590 14,042 441,632 Total Asset Revaluation Reserves 702,079 14,042 716,121
The asset revaluation reserve is used to record the increased (net) value of Council's assets over time.
118 Page 37 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 27 Reserves (cont.) Balance at beginning of Transfer from Transfer to reporting accumulated accumulated Balance at end of period surplus surplus reporting period (b) Other Reserves 2017 $'000 $'000 $'000 $'000 Statutory Reserves Open Space 2,620 776 (256) 3,140 Development 3,759 595 (454) 3,900 6,379 1,371 (710) 7,040 Discretionary and Other Reserves Waste Facility 6,885 251 (1,772) 5,364 Land & Buildings 1,519 36 (431) 1,124 Carpark 661 - - 661 Defined Benefits 2,200 400 - 2,600 Long Service Leave 3,696 200 - 3,896 Unexpended Grants & Donations 18,975 11,011 (16,975) 13,011 33,936 11,898 (19,178) 26,656 Total Other Reserves 40,315 13,269 (19,888) 33,696
Other Reserves 2016 Statutory Reserves Open Space 1,878 1,061 (319) 2,620 Development 3,329 984 (554) 3,759 5,207 2,045 (873) 6,379 Discretionary and Other Reserves Waste Facility 5,289 2,234 (638) 6,885 Land & Buildings 1,794 - (275) 1,519 Carpark 630 31 - 661 Defined Benefits 1,800 400 - 2,200 Long Service Leave 3,396 300 - 3,696 Unexpended Grants & Donations 8,740 18,975 (8,740) 18,975 21,649 21,940 (9,653) 33,936 Total Other Reserves 26,856 23,985 (10,526) 40,315 Statutory Reserves Open Space - Statutory developer contribution funds to be used for future recreation facility additions or improvements. Development Reserve - Statutory developer contribution funds for future drainage, road, fencing and tree planting. Discretionary and Other Reserves Waste Facility Reserve - This reserve has been established to make some provision for a replacement waste treatment facility Land & Building Reserve - This reserve has been established for future expansion of Community Land & Buildings. Car Park Reserve - This reserve has been established for the provision of an additional car parking facility in the Central Business District of Bendigo. Defined Benefits - This reserve is used to assist with the funding of any call that may be made on Council as a result of shortfall Long Service Leave - This reserve has been established after changes to the Local Government (Long Service Leave) Regulations 2002 came into effect, removing requirement to maintain a separate investment. Council agreed to create a reserve to acknowledge the liability and ensure funds are available when required. Unexpended Grants & Donations - This reserve is used to set aside grant and donation monies in relation to specific projects received in one financial year that will not be expended until a later financial year. Funds in this account are predominantly not discretionary.
Annual Report 2016/2017Page 38 119 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 28 Notes to Cash Flow Statement 2017 2016 (a) Reconciliation of Cash and Cash Equivalents Note $'000 $'000 Cash on Hand 30 30 Cash at Bank 3,884 10,584 Term Deposits 76,036 54,501 Cash at end of Financial Year as per Cash Flow Statement 15 79,950 65,115
(b) Reconciliation of Cash Flows from Operating 2017 2016 Activities to Surplus / (Deficit) Note $'000 $'000 Surplus / (Deficit) for the Year 50,181 41,492
Items not Involving Cash Depreciation / Amortisation 12 31,230 30,149 (Profit) / Loss on disposal of Property, Infrastructure, Plant and Equipment 7 27,225 8,981 Contributions - Non Monetary Assets 6 (20,342) (17,095) Found Assets (21,782) (1,691) Share of Net (Profits) / Losses of Associates Accounted 14 898 (90) for Using the Equity Method Financing Costs (Other) 1,773 1,679
Change in Operating Assets and Liabilities Movement in: (Increase) / Decrease in Trade and Other Receivables 19 3,561 (10,249) (Increase) / Decrease in Other Assets 18 321 (836) (Increase) / Decrease in Intangible Assets 22 (1,983) (32) (Increase) / Decrease in Inventory (66) (6) Increase / (Decrease) in Trade and Other Payables 23 3,502 (12,106) Increase / (Decrease) in Trust Funds and Deposits 24 (39) 344 Increase / (Decrease) in Provisions 25(a) 6,603 2,585 Net Cash Provided By / (Used In) Operating Activities 81,082 43,125
(c) Financing Arrangements $'000 $'000 Bank Overdraft 3,500 3,500 Credit Card Facility 400 400 Total Facilities 3,900 3,900
Used Facilities 64 47 Unused Facilities 3,836 3,853 Total Facilities 3,900 3,900
120 Page 39 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 29 Commitments for Expenditure The Council has entered into the following commitments. Later than 1 year Not later and not later than Later than 5 2017 than 1 year 5 years years Total $'000 $'000 $'000 $'000 Operating Animal Pound Services 252 261 - 513 Building Essential Services 254 653 - 907 Children and Family Services 167 35 108 310 Cleaning Contracts 1,038 1,341 - 2,379 Cleaning Public Bins 113 442 - 555 Communications 131 - - 131 Contract Management 20 20 - 40 Garbage Collection - Transfer Stations 121 - - 121 Internal Audit 39 - - 39 IT / Telecommunications 219 171 - 390 Organics Collection 891 3,744 - 4,635 Processing Organic Waste 1,155 4,247 - 5,402 Recyclable Garbage Collection 1,683 2,652 - 4,335 Sanitary Services 25 51 - 76 Security Services 147 295 - 442 Septic Systems 33 3 - 36 Theatre Costs 164 - - 164 Transportation of Waste from Eaglehawk Landfill 2,200 2,889 - 5,089 8,652 16,804 108 25,564 Capital Communications 8 - - 8 Construction Works* 38,968 2,000 - 40,968 38,976 2,000 - 40,976 TOTAL 47,628 18,804 108 66,540 * Construction Works are for Commitments for Major Projects including; $18M new Aquatic Centre, $7M Bendigo Stadium Expansion, $4M Bendigo RSL Soldiers Memorial, $3.2M Garden for the Future, $2.4M Strathfieldsaye Early Learning Centre and $1.3M Bendigo Tennis Centre. Later than 1 year Not later and not later than Later than 5 2016 than 1 year 5 years years Total $'000 $'000 $'000 $'000 Operating Cleaning Contracts 765 467 - 1,232 Building Essential Services 187 741 - 928 Security Services 99 334 - 433 Sanitary Services 20 56 - 76 Children and Family Services 89 106 - 195 Contract Management 20 48 - 68 IT / Telecommunications 211 332 - 543 Internal Audit 39 39 - 78 Recyclable Garbage Collection 1,548 2,349 - 3,897 Garbage Collection - Transfer Stations 122 127 - 249 Transportation of Waste from Eaglehawk Landfill 2,910 3,355 - 6,265 Processing Organic Waste 1,012 5,474 270 6,756 Organics Collection 759 4,153 2,629 7,541 Cleaning Public Bins 110 442 - 552 Animal Pound Services 244 252 - 496 Aged Care Services 49 7 - 56 Septic Systems 41 78 - 119 Community Chef 180 - - 180 Strategy - Consulting Services 65 - - 65 Infrastructure - Consulting Services 171 - - 171 Community Development Services 104 88 - 192 Communications 83 - - 83 Electoral Services 467 - - 467 9,295 18,448 2,899 30,642 Capital Supply of Bins 726 165 - 891 Construction Works 51,199 12,741 - 63,940 51,925 12,906 - 64,831 TOTAL 61,220 31,354 2,899 95,473
Annual Report 2016/2017Page 40 121 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council
Note 30 Operating Lease Commitments 2017 2016 $'000 $'000 At the reporting date, the Council had the following obligations under non-cancellable operating leases for equipment and land These obligations are not recognised in the financial statements as liabilities:
Not later than one year 148 493 Later than one year and not later than five years 93 242 Total Operating Lease Commitments 241 735
Note 31 Superannuation Council makes the majority of its employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Obligations for contributions to the Fund are recognised as an expense in the Comprehensive Income Statement when they are made or due.
Accumulation The Fund's accumulation categories, Vision MySuper/Vision Super Saver, receive both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (for the year ended 30 June 2017, this was 9.5% as required under Superannuation Guarantee legislation).
Defined Benefit Council does not use defined benefit accounting for its defined benefit obligations under the Fund's Defined Benefit category. This is because the Fund's Defined Benefit category is a pooled multi-employer sponsored plan.
There is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as the defined benefit obligation is a floating obligation between the participating employers and the only time that the aggregate obligation is allocated to specific employers is when a call is made. As a result, the level of participation of Council in the Fund cannot be measured as a percentage compared with other participating employers. Therefore, the Fund Actuary is unable to allocate benefit liabilities, assets and costs between employers for the purposes of AASB 119.
Funding Arrangements Council makes employer contributions to the Defined Benefit category of the Fund at rates determined by the Trustee on the advice of the Fund Actuary.
As at 30 June 2016, an interim acturial investigation was held as the Fund provides lifetime pensions in the Defined Benefit category. The vested benefit index (VBI) of the Defined Benefit category of which Council is a contributing employer was 102.0%. To determine the VBI, the fund Actuary used the following long-term assumptions:
Net investment returns 7.0% pa Salary information 4.25% pa Price inflation (CPI) 2.5% pa.
Vision Super has advised that the estimated VBI at 30 June 2017 was 103.1%. The VBI is to be used as the primary funding indicator. Because the VBI was above 100%, the 2016 interim acturial investigation determined the Defined Benefit category was in a satisfactory financial position and that no change was necessary to the Defined Benefit category’s funding arrangements from prior years.
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Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 31 Superannuation (cont.) Employer Contributions Regular Contributions On the basis of the results of the 2016 interim actuarial investigation conducted by the Fund Actuary, Council makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2017, this rate was 9.5% of members' salaries (9.5% in 2015/2016). This rate will increase in line with any increase to the contribution rate. 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.
Funding Calls If the Defined Benefit category is in an unsatisfactory financial position at an actuarial investigation or the Defined Benefit category‘s VBI is below its shortfall limit at any time other than the date of the actuarial investigation, the Defined Benefit category has a shortfall for the purposes of SPS 160 and the Fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97%.
In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s participating employers (including Council) are required to make an employer contribution to cover the shortfall. Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s Defined Benefit category, together with the employer’s payroll at 30 June 1993 and at the date the shortfall has been calculated.
Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund includes lifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up. If there is a surplus in the Fund, the surplus cannot be returned to the participating employers. In the event that a participating employer is wound-up, the defined benefit obligations of that employer will be transferred to that employer’s successor.
2016 Interim actuarial investigation surplus amounts The Fund’s interim actuarial investigation as at 30 June 2016 identified the following in the defined benefit category of which Council is a contributing employer: A VBI surplus of $40.3 million; and A total service liability surplus of $156 million. The VBI surplus means that the market value of the fund’s assets supporting the defined benefit obligations exceed the vested benefits that the defined benefit members would have been entitled to if they had all exited on 30 June 2016. The total service liability surplus means that the current value of the assets in the Fund’s Defined Benefit category plus expected future contributions exceeds the value of expected future benefits and expenses. Council was notified of the 30 June 2016 VBI during August 2016.
2017 Full triennial actuarial investigation A full actuarial investigation is being conducted for the Fund's position as at 30 June 2017. It is anticipated that this actuarial investigation will be completed in December 2017.
Future superannuation contributions There were $166,537 contributions outstanding and no loans issued from or to the above schemes as at 30 June 2017. The expected contributions to be paid to the Defined Benefit category of Vision Super for the year ending 30 June 2018 is $488,431.
Annual Report 2016/2017Page 42 123 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 32 Contingent Liabilities (a) Loan Guarantees As at 30 June 2017, the Council had contingent liabilities in respect of loan guarantees given on behalf of the following organisations. Current Council Loan Date Guarantee Guarantee Financial Approved by Guarantee Name of Organisation Amount Exposure Institution Council Expires $$
Bendigo Stadium Ltd - Loan 1 1,008,791 - Bendigo Bank 31/10/2002 Sep 2025 *
Bendigo Stadium Ltd - Loan 2 1,811,107 - Bendigo Bank 31/10/2002 Sep 2025 *
Bendigo Stadium Ltd - Loan 3 13,819,898 12,205,986 Bendigo Bank 4/05/2016 May 2027 *
Kangaroo Flat Bowling Club 300,000 - Bendigo Bank 14/11/2002 Nov 2017 **
Bendigo Properties Pty Ltd 1,600,000 - Bendigo Bank 29/02/2008 Dec 2017 ** Total Amount 12,205,986
* Bendigo Stadium Ltd - Loan 1 and Loan 2 have been consolidated into the new Bendigo Stadium Ltd - Loan 3. An additional guarantee was approved for $11,000,000 on 16 May 2017. The total exposure at 30 June 2017 is $12,205,986. ** Kangaroo Flat Bowling Club and Bendigo Properties Pty Ltd were repaid during the 2016-17 financial year.
(b) Performance Guarantees As at 30 June 2017 the Council had contingent liabilities in respect of contracts entered into which require performance standards to be maintained. Financial Date Name of Organisation Description Amount Institution Entered Department of Natural Gravel Pit Commonwealth $ 20,000 25/08/1998 Resources and Environment Rehabilitation Bank EPA Victoria Remedial Action Landfill $ 1,952,877 Bendigo Bank 17/05/2005 Site
(c) Other Contingent Liabilities (i) Council is currently negotiating with a State Government Department in regards to the rehabilitation of a contaminated site within the municipality. The Department has commenced an assessment program at the site with Phase 1 and Phase 2 of an Environmental Site Assessment being completed. It is not known if Council will be required to contribute to any future rehabilitation costs upon the completion of the assessment program.
(ii) Council has confirmed the presence of ten past and one current landfill sites that may require some form of rehabilitation or remediation works. Both the Eaglehawk and White Hills sites have had a rehabilitation plan developed. This has allowed Council to include an accurate provision within the financial statements for both sites at the 30 June 2017. To date, discussions with the Environmental Protection Authority (EPA) have been centred on the possible works required at the old Wolstencroft Landfill site. Council are in discussions as to how to redevelop this site with the decision likely to impact the rehabilitation costs. Due to these unknowns, Council are unable to accurately assess the financial implications of such works. The remainder of the former landfill sites that have been identified are considered a low risk and are unlikely to require any further rehabilitation. (iii) Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional contributions to the scheme, matters relating to this potential obligation are outlined in Note 32. As a result of the volatility in financial markets the likelihood of making such contributions in future periods exists. At this point in time it is not known if additional contributions will be required, their timing or potential amount.
124 Page 43 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 33 Contingent Assets Contributed Assets Construction of infrastructure assets by developers in the course of creating new subdivisions results in the infrastructure assets being vested in Council when Council issues a Statement of Compliance. These assets are bought to account as revenue and capitalised.
At reporting date, developers had commenced construction of assets that will eventually be transferred to Council contingent upon Council issuing a Statement of Compliance.
Due to the nature of the arrangements in place and the assets involved, a contingent asset amount cannot be reliably measured prior to completion.
Annual Report Page2016/2017 44 125 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 34 Financial Instruments (a) Objectives and Policies The Council's principal financial instruments comprise cash assets, term deposits, receivables (excluding statutory receivables), payables (excluding statutory payables) and bank borrowings. 'Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements. 'Risk management is carried out by senior management under policies approved by the Council. These policies include identification and analysis of the risk exposure to Council and appropriate procedures, controls and risk minimisation.
(b) 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 is primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk.
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. 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. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Council has minimal exposure to cash flow interest rate risk through its cash and deposits that are at floating rate.
Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. - diversification of investment product, - monitoring of return on investment, - benchmarking of returns and comparison with budget.
There has been no significant change in the Council's exposure, or its objectives, policies and processes for managing interest rate risk or the methods used to measure this risk from the previous reporting period.
Interest rate movements have not been sufficiently significant during the year to have an impact on the Council's year end result.
(c) 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 some financial assets included in our balance sheet. To help manage this risk, we only invest surplus funds with financial institutions which have a recognised credit rating specified in our investment policy.
Receivables consist of a large number of customers, spread across the ratepayer, business and government sectors. Credit risk associated with the Council's financial assets is minimal because the main debtor is secured by a charge over the rateable property.
There are no material financial assets which are individually determined to be impaired.
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.
The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Council does not hold any collateral.
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Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 34 Financial Instruments (cont.) (d) Liquidity Risk Liquidity risk includes the risk that, as a result of our operational liquidity requirements or we will not have sufficient funds to settle a transaction when required, we will be forced to sell a financial asset at below value or may be unable to settle or recover a financial asset. To help reduce these risks Council: - 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 maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet and the amounts related to financial guarantees disclosed in Note 34, and is deemed insignificant based on prior periods' data and current assessment of risk.
There has been no significant change in Council's exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.
With the exception of borrowings, all financial liabilities are expected to be settled within normal terms of trade. Details of the maturity profile for borrowings are disclosed at Note 26.
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. e) Fair Value Unless otherwise stated, the carrying amount of financial instruments reflect their fair value.
Fair value hierarchy Council's financial assets and liabilities are not valued in accordance with the fair value hierarchy , Council's financial assets and liabilities are measured at amortised cost.
(f) Sensitivity Disclosure Analysis Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Council believes the following movements are 'reasonably possible' over the next 12 months: - A parallel shift of +1% and -0.5% in market interest rates (AUD) from year-end rates of 2.3%.
These movements will not have a material impact on the valuation of Council's financial assets and liabilities, nor will they have a material impact on the results of Council's operations.
Annual Report Page2016/2017 46 127 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 35 Related Party Transactions (i) Related Parties Parent Entity Greater Bendigo City Council is the parent entity. Subsidiaries and Associates Interest in subsidiaries and associates are detailed in Note 14.
(ii) Key Management Personnel 2017 No. Details of persons holding the position of a Councillor or other members of key management personnel at any time during the year are: Councillors Margaret O'Rourke Mayor (15/11/2016 - 30/06/2017) (15/11/2016 - 30/06/2017) Rod Fyffe Mayor (01/07/2016 - 14/11/2016) (01/07/2016 - 30/06/2017) James Williams (01/07/2016 - 30/06/2017) Jennfier Alden (15/11/2016 - 30/06/2017) Matt Emond (15/11/2016 - 30/06/2017) George Flack (15/11/2016 - 30/06/2017) Julie Hoskin (15/11/2016 - 30/06/2017) Andrea Metcalf (15/11/2016 - 30/06/2017) Yvonne Wrigglesworth (15/11/2016 - 30/06/2017) Barry Lyons (01/07/2016 - 22/10/2016) Peter Cox (01/07/2016 - 22/10/2016) Lisa Ruffell (01/07/2016 - 22/10/2016) Rod Campbell (01/07/2016 - 22/10/2016) Elise Chapman (01/07/2016 - 22/10/2016) Helen Leach (01/07/2016 - 22/10/2016) Mark Weragoda (01/07/2016 - 22/10/2016) Total Number of Councillors 16 Chief Executive Officer and other Key Management Personnel* 9 Total Key Management Personnel 25
* Other Key Management personel during the period were: Chief Executive Officer Craig Neimann; Directors Kerryn Ellis, Vicky Mason, Craig Lloyd and Bernie O'Sullivan; and former (or acting for a period) Directors Prue Mansfield, Darren Fuzzard, Michael Smyth and Terry Karamaloudis.
(iii) Remuneration of Key Management Personnel 2017 $'000 Total remuneration of key management personnel was as follows: Short-term benefits 1,679 Long-term benefits 19 Termination benefits 181 Total 1,879
The numbers of key management personnel whose total remuneration from Council 2017 and any related entities, fall within the following bands was as follows: No. $10,000 - $19,999 8 $20,000 - $29,999 6 $30,000 - $39,999 1 $50,000 - $59,999 1 $60,000 - $69,999 2 $70,000 - $79,999 - $100,000 - $109,999 1 $110,000 - $119,999 1 $130,000 - $139,999 - $160,000 - $169,999 2 $170,000 - $179,999 - $210,000 - $219,999 - $220,000 - $229,999 - $230,000 - $239,999 1 $310,000 - $319,999 1 $330,000 - $339,999 1 25
128 Page 47 FINANCIAL STATEMENTS 2016/2017
Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 35 Related Party Transactions (cont.) (iv) Transactions with Related Parties During the period Council entered into the following transactions with related parties. 2017 $'000 Income Financial Services provided to North Central Goldfields Regional Library Corporation (NCGRLC) 84 Rent and outgoings received from NCGRLC for the Bendigo Library Headquarters 31 115 Expenses Contribution to NCGRLC 2,815 Reimbursement for running the Bendigo Regional Archive Centre (BRAC), paid to NCGRLC 91 Room Hire / Other Expenses, paid to NCGRLC 18 2,924
(v) Outstanding Balances with Related Parties There was material no balances outstanding at the end of the reporting period in relation to transactions with related parties.
(vi) Loans To/From Related Parties There are no loans in existence at balance date which have been made, guaranteed or secured by Council to a related party.
(vii) Commitments To/From Related Parties There following commitments are in existence at balance date that have been made, guaranteed or secured by Council to a related party: (a) The Counil has an agreement with the North Central Goldfields Regional Library Corporation to provide accounting and financial services to 30 June 2018 for which a fee is paid. The Council also has a 10 year lease agreement for buildings with the Corporation which commenced on 1 July 2015, for which rental is charged.
(b) Whilst a Councillor, Peter Cox was the General Manager of the Eaglehawk Recycle Shop Inc. (ERS) for a part of the year. ERS operates the Recovery Centre at the Eaglehawk Landfill site. The Landfill site is operated by Council and no fees are paid by the operators of the Recovery Centre. The Council has a three year lease with ERS up until 15 March 2019.
Annual Report 2016/2017Page 48 129 Notes to the Financial Report for the Year Ended 30 June 2017 Greater Bendigo City Council Note 36 Senior Officer Remuneration A Senior Officer is an officer of Council, other than Key Management Personnel, who: a) has management responsibilities and reports directly to the Chief Executive; or b) whose total annual remuneration exceeds $142,000.
The number of Senior Officers are shown below in their relevant income bands: 2017 2016 No. No. Income Range: < $142,000 -2 $142,000 - $149,999 10 5 $150,000 - $159,999 35 $160,000 - $169,999 64 $170,000 - $179,999 -1 19 17
2017 2016 $'000 $'000 Total remuneration for the reporting year for Senior Officers included above, amounted to: 2,919 3,656
Note 37 Events Occurring after Balance Date No matter has occurred after balance date that require disclosure in the financial report.
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Annual Report 2016/2017 131
Independent Auditor’s Report IndependentTo the Councillors of Greater Auditor’s Bendigo CityReport Council pinion I have audited the financial report of Greater Bendigo City Council (the council) which To the Councillorscomprises of Greater the: Bendigo City Council
pinion I have auditedbalance thesheet financial as at 30 report June 2017of Greater Bendigo City Council (the council) which comprises comprehensive the: income statement for the year then ended statementbalance sheet of changes as at 30 inJune equity 2017 for the year then ended statementcomprehensive of cash income flows statement for the year for then the endedyear then ended statement of capitalchanges works in equity for the for yearthe year then then ended ended notesstatement to the of financial cash flows statements, for the year including then ended a summary of significant accounting policiesstatement of capital works for the year then ended certificationnotes to the offinancial the financial statements, statements including. a summary of significant accounting In my opinionpolicies the financial report presents fairly, in all material respects, the financial position certification of the council of the as atfinancial 30 June statements 2017 and .their financial performance and cash flows for theIn my year opinion then endedthe financial in accordance report presents with the fairly, financial in all reporting material requirementsrespects, the financialof Part 6 of the Localposition Government of the council Act 1989as at and30 June applicable 2017 and Australian their financial Accounting performance Standards. and cash flows for the year then ended in accordance with the financial reporting requirements of Part 6 of the sis or I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Local Government Act 1989 and applicable Australian Accounting Standards. pinion Australian Auditing Standards. My responsibilities under the Act are further described in the sis or Auditor’sI have conducted Responsibilities my audit for in the accordance Audit of thewith Financial the Audit Report Act 1994 section which of myincorporates report. the pinion MyAustralian independence Auditing is Standards. established My by responsibilities the Constitution under Act 1975. the Act My are staff further and I described are in the independentAuditor’s Responsibilities of the council for in the accordance Audit of the with Financial the ethical Report requirements section of myof the report. Accounting MyProfessional independence and Ethical is established Standards by Board’s the Constitution APES 110 Act Code 1975. of Ethi Mycs staff for Professionaland I are independentAccountants (theof the Code) council that in are accordance relevant to with my the audit ethical of the requirements financial report of the in Australia. Accounting My Professionalstaff and I have and also Ethical fulfilled Standards our other Board’s ethical APES responsibilities 110 Code of Ethiin accordancecs for Professional with the Code. AccountantsI believe that (the the auditCode) evidence that are relevantI have obtai to myned audit is sufficient of the financial and appropriate report in to Australia. provide Mya staffbasis andfor myI have opinion. also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a oun i ors’ The Councillors of the council are responsible for the preparation and fair presentation of basis for my opinion. responsi i ities the financial report in accordance with Australian Accounting Standards and the Local oun i ors or t e ’ TheGovernment Councillors Act of 1989 the, council and for are such responsible internal control for the as preparation the Councillors and fairdetermine presentation is of responsi i ities in n i thenecessary financial to reportenable in the accordance preparation wit andh Australian fair presentation Accounting of a Standards financial reportand the that Local is free orreport t e Governmentfrom material Act misstatement, 1989, and for whet suchher internal due to control fraud or as error. the Councillors determine is in n i necessaryIn preparing to theenable financial the preparation report, the andCouncillors fair presentation are responsible of a financial for assessing report the that council is free’s report fromability material to continue misstatement, as a going concern,whether dueand tousing fraud the or going error. concern basis of accounting Inunless preparing it is inappropriate the financial toreport, do so. the Councillors are responsible for assessing the council’s ability to continue as a going concern, and using the going concern basis of accounting unless it is inappropriate to do so.
132
FINANCIAL STATEMENTS 2016/2017
Auditor’ As re ired the Audit Act res onsi ilit is to e ress an o inion on the financial r o i i iti re ort ased on the a dit o ecti es for the a dit are to o tain reasona le ass rance or t udit a o t hether the financial re ort as a hole is free fro aterial isstate ent hether o t i i due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable r ort ass rance is a hi h le el of ass rance t is not a arantee that an a dit cond cted in accordance ith the A stralian A ditin Standards ill al a s detect a aterial isstate ent hen it e ists isstate ents can arise fro fra d or error and are considered aterial if indi id all or in the a re ate the co ld reasona l e e ected to infl ence the econo ic decisions of sers ta en on the asis of this financial re ort As art of an a dit in accordance ith the A stralian A ditin Standards e ercise rofessional d e ent and aintain rofessional sce ticis thro ho t the a dit also
identif and assess the ris s of aterial isstate ent of the financial re ort hether d e to fra d or error desi n and erfor a dit roced res res onsi e to those ris s and o tain a dit e idence that is s fficient and a ro riate to ro ide a asis for o inion he ris of not detectin a aterial isstate ent res ltin fro fra d is hi her than for one res ltin fro error as fra d a in ol e coll sion for er intentional o issions isre resentations or the o erride of internal control o tain an nderstandin of internal control rele ant to the a dit in order to desi n a dit roced res that are a ro riate in the circ stances t not for the r ose of e ressin an o inion on the effecti eness of the co ncil’s internal control e al ate the a ro riateness of acco ntin olicies sed and the reasona leness of acco ntin esti ates and related disclos res ade the o ncillors concl de on the a ro riateness of the o ncillors’ se of the oin concern asis of acco ntin and ased on the a dit e idence o tained hether a aterial ncertaint e ists related to e ents or conditions that a cast si nificant do t on the co ncil’s ability to continue as a going concern. If I conclude that a material ncertaint e ists a re ired to draw attention in my auditor’s report to the related disclos res in the financial re ort or if s ch disclos res are inade ate to odif o inion concl sions are ased on the a dit e idence o tained to the date of my auditor’s report. Howe er f t re e ents or conditions a ca se the co ncil to cease to contin e as a oin concern e al ate the o erall resentation str ct re and content of the financial re ort incl din the disclos res and hether the financial re ort re resents the nderl in transactions and e ents in a anner that achie es fair resentation co nicate ith the o ncillors re ardin a on other atters the lanned sco e and ti in of the a dit and si nificant a dit findin s incl din an si nificant deficiencies in internal control that identif d rin a dit
E B E i o hnan Se te er 01 as dele ate for the Auditor eneral of ictoria
Annual Report 2016/2017 133 Greater Bendigo City Council Performance Statement For the Year Ended 30 June 2017
134 Page 53 FINANCIAL STATEMENTS 2016/2017
Greater Bendigo City Council PERFORMANCE STATEMENT Description of Municipality
The City of Greater Bendigo is located in the geographic centre of Victoria about 90 minutes’ drive north of Melbourne. Greater Bendigo has an estimated population of almost 114,000 at 30 June 2017 and covers almost 3,000 square kilometres of the central Victorian landscape, including smaller towns and villages such as Heathcote, Axedale, Huntly, Marong, Elmore, Goornong, Neilborough, Sebastian, Woodvale, Raywood, Mia Mia and Redesdale.
The resident population of Greater Bendigo at the 2016 ABS census of population and housing was 111,783, this was a growth of 9.6% from a population of 101,995 at the 2011 Census, which represents an average annual growth rate of 1.9% or 2,157 people.
The service age structure of Greater Bendigo shows different populations at their different life stages. Looking at age structure this way can better inform the level of demand on specific age based services as well as specific housing needs.
The age structure of Greater Bendigo at the 2016 Census shows that overall 19.2% of the population was aged between 0 and 15 and 17.8% of residents were over the age of 65. Compared to Regional Victoria, Greater Bendigo has a higher proportion of people in the younger age groups and lower proportion of those 65 and over (18.2% and 20.4% respectively).
Annual Report 2016/2017 135 Page 54 Greater Bendigo City Council PERFORMANCE STATEMENT Sustainable Capacity Indicators Results Results Results Indicator /measure 2015 2016 2017 Material Variations Population Expenses per head of municipal population $1,606.68 $1,559.13 $1,508.76 [Total expenses / Municipal population] Infrastructure per head of municipal population $10,326.64 $10,488.21 $10,861.75 [Value of infrastructure / Municipal population] Population density per length of road 34.62 34.99 35.89 [Municipal population / Kilometres of local roads] Own-source revenue $1,042.70 $1,224.47 $989.50 In 2016/17 Council's Rates, Fees and Own-source revenue per head of municipal population Charges revenue grew by 4.5%, alongside [Own-source revenue / Municipal population] a 2.7% increase in the municipal population. However the revenue mix for "total" own-source revenue was impacted by a large loss on disposal of property, infrastructure, plant and equipment. This was predominantly related to a non-cash disposal of $13M of Artworks incorrectly recorded as Council assets (previously brought to account as non-monetary contributions).
Recurrent grants Recurrent grants per head of municipal population $318.57 $178.30 $308.52 The variance is due to receiving [Recurrent grants / Municipal population] approximately 50% of the 2017/18 Financial Assistance Grant in 2016/17 - inflating the 2017 results. Approximately 50% of the 2015/16 Financial Assistance Grant was received in 2014/15, impacting 2015 /16. Disadvantage Relative Socio-Economic Disadvantage 4.00 4.00 4.00 [Index of Relative Socio-Economic Disadvantage by decile] Definitions "adjusted underlying revenue" means total income other than: (a) non-recurrent grants used to fund capital expenditure; and (b) non-monetary asset contributions; and (c) contributions to fund capital expenditure from sources other than those referred to above “infrastructure” means non-current property, plant and equipment excluding land "local road" means a sealed or unsealed road for which the council is the responsible road authority under the Road Management Act 2004 "population" means the resident population estimated by council "own-source revenue" means adjusted underlying revenue other than revenue that is not under the control of council (including government grants) "relative socio-economic disadvantage", in relation to a municipality, means the relative socio-economic disadvantage, expressed as a decile for the relevant financial year, of the area in which the municipality is located according to the Index of Relative Socio-Economic Disadvantage (Catalogue Number 2033.0.55.001) of SEIFA "SEIFA" means the Socio-Economic Indexes for Areas published from time to time by the Australian Bureau of Statistics on its Internet website "unrestricted cash" means all cash and cash equivalents other than restricted cash.
136 Page 55 FINANCIAL STATEMENTS 2016/2017
Greater Bendigo City Council PERFORMANCE STATEMENT Service Performance Indicators Results Results Results Service/indicator /measure 2015 2016 2017 Material Variations Aquatic Facilities The utilisation of aquatic centres has had Utilisation no material variations from year to year. In previous years the attendance of the Utilisation of aquatic facilities 1.66 1.68 1.72 Indoor Aquatic Facility has also been included in this calculation. However as the facility is leased and not controlled this [Number of visits to aquatic facilities / Municipal has now been removed from the population] calculation for the current and prior year results. Animal Management Health and safety There were 5 successful prosecutions for Animal management prosecutions 6.00 5.00 7.00 2015/2016 and 7 for 2016/17 which results in an increase of 40%. [Number of successful animal management prosecutions] Food Safety From 1 July 2016, 'Critical and major non- Health and safety compliance outcome notifications' will be Critical and major non-compliance outcome reported by calendar year. Previously this 100.00% 93.55% 74.66% notifications indicator was reported by financial year. This has been implemented to better align [Number of critical non-compliance outcome reporting with the Department of Health notifications and major non-compliance notifications and Human Services. This may result in about a food premises followed up / Number of critical some variances year on year. The non-compliance outcome notifications and major non- decrease is also related to staff shortages compliance notifications about a food premises] x100 in the 2016/17 period.
Governance Satisfaction Satisfaction with council decisions 51.00 51.00 52.00 [Community satisfaction rating out of 100 with how council has performed in making decisions in the interest of the community] Home and Community Care (HACC) Participation Reporting Reporting on HACC ceased on 1 July 2016 due to the introduction of the Participation in HACC service 20.00% 18.29% Ceased 1 July Commonwealth Government's NDIS and 2016 CHSP programs. [Number of people that received a HACC service / Municipal target population for HACC services] x100
Participation Reporting on HACC ceased on 1 July Reporting 2016 due to the introduction of the Participation in HACC service by CALD people 12.00% 12.04% Ceased Commonwealth Government's NDIS and 1 July CHSP programs. [Number of CALD people who receive a HACC service 2016 / Municipal target population in relation to CALD people for HACC services] x100 Libraries Participation Active library members 17.00% 15.67% 14.82% [Number of active library members / Municipal population] x100
Annual Report 2016/2017 137 Page 56 Greater Bendigo City Council PERFORMANCE STATEMENT Service Performance Indicators (cont.) Maternal and Child Health (MCH) Participation Participation in the MCH service [Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in 79.00% 77.40% 76.65% the MCH service] x100 Participation
Participation in the MCH service by Aboriginal children 76.00% 74.74% 78.56%
[Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100
Roads Satisfaction Satisfaction with sealed local roads 61.00 56.00 59.00 [Community satisfaction rating out of 100 with how council has performed on the condition of sealed local roads] Statutory Planning Decision making There were 4 less cases referred to VCAT Council planning decisions upheld at VCAT 76.00% 83.33% 62.50% in the 2016/17 reporting period (2015/16: 12 cases). Due to the small number of [Number of VCAT decisions that did not set aside cases, the variation percentage is higher council's decision in relation to a planning application / year on year. Number of VCAT decisions in relation to planning applications] x100 Waste Collection Waste diversion The increase in waste diverted from Kerbside collection waste diverted from landfill 26.00% 28.65% 45.59% landfill is primarily due to the successful rollout of an organics service across the [Weight of recyclables and green organics collected municipality which began in September from kerbside bins / Weight of garbage, recyclables 2016. and green organics collected from kerbside bins] x100
Definitions "Aboriginal child" means a child who is an Aboriginal person "Aboriginal person" has the same meaning as in the Aboriginal Heritage Act 2006 "active library member" means a member of a library who has borrowed a book from the library "annual report" means an annual report prepared by a council under sections 131, 132 and 133 of the Act “CALD” means culturally and linguistically diverse and refers to persons born outside Australia in a country whose national language is not English “class 1 food premises” means food premises, within the meaning of the Food Act 1984, that have been declared as class 1 food premises under section 19C of that Act “class 2 food premises” means food premises, within the meaning of the Food Act 1984 , that have been declared as class 2 food premises under section 19C of that Act "Community Care Common Standards "means the Community Care Common Standards for the delivery of HACC services, published from time to time by the Commonwealth "critical non-compliance outcome notification" means a notification received by council under section 19N(3) or (4) of the Food Act 1984 , or advice given to council by an authorized officer under that Act, of a deficiency that poses an immediate serious threat to public health "food premises" has the same meaning as in the Food Act 1984 "HACC program" means the Home and Community Care program established under the Agreement entered into for the purpose of the Home and Community Care Act 1985 of the Commonwealth "HACC service" means home help, personal care or community respite provided under the HACC program "local road" means a sealed or unsealed road for which the council is the responsible road authority under the Road Management Act 2004 "major non-compliance outcome notification" means a notification received by a council under section 19N(3) or (4) of the Food Act 1984, or advice given to council by an authorized officer under that Act, of a deficiency that does not pose an immediate serious threat to public health but may do so if no remedial action is taken
138 Page 57 FINANCIAL STATEMENTS 2016/2017
Greater Bendigo City Council PERFORMANCE STATEMENT
Service Performance Indicators (cont.) Definitions (cont.) "MCH" means the Maternal and Child Health Service provided by a council to support the health and development of children within the municipality from birth until school age"population" means the resident population estimated by council "target population" has the same meaning as in the Agreement entered into for the purposes of the Home and Community Care Act 1985 of the Commonwealth "WorkSafe reportable aquatic facility safety incident" means an incident relating to a council aquatic facility that is required to be notified to the Victorian WorkCover Authority under Part 5 of the Occupational Health and Safety Act 2004.
Annual Report 2016/2017 139 Page 58 Page 59 Material Variations The increase is due to: the introduction of organics bin collection service, which charge $71p.a. across all residential properties; recycle charges increasing by 3.1% over the period; and that in 2015/16 $1.2M was refunded via a reduced garbage charges (to account for higher preparing a Carbon Tax in prior years). Smaller increases are expected in future years. Once the current major capital program, including an Acquatic Centre, is complete, overall expenditure per property assessed is forecast to decrease. There was a higher turnover this year due to resignations where positions were not filled on a permanent basis. The forecast is based on a trend analysis of previous years. This has seen the average headcount decline, and the number of resignations and terminations remain steady. At the end of 2016/17 cash balance was $14M higher than 2015/16 due to capital expenditure projects to be completed in 2017/18. The slight decrease to 2016/17 is due an increase in provisions for remediation of landfills. Higher capital expenditure related to carried forward projects have reduced the unrestricted cash compared to 2015/16. Trade payables and additional provisioning for landfill remediation has also increased current liabilities. 2021 Forecasts 2018 2019 2020 2015 2016 2017 6.97% 7.67% 8.79% 8.53% 8.81% 9.08% 9.38% 98.64% 84.91% 64.24% 56.82% 71.36% 86.09% 81.82% Results Results Results 167.10% 251.69% 236.56% 131.88% 147.52% 156.51% 125.86% $3,164.57 $2,808.53 $2,907.83 $2,767.52 $2,685.00 $2,681.62 $2,672.28 $1,284.74 $1,468.94 $1,636.27 $1,701.71 $1,733.65 $1,785.65 $1,802.42 e measur / indicator Council y o Cit g Dimension/ Greater Bendi PERFORMANCE STATEMENT [Residential rate revenue / Number of residential property assessments] Expenditure level Expenses per property assessment [Total expenses / Number of property assessments] Workforce turnover Resignations and terminations compared to average staff [Number of permanent staff resignations and terminations / Average number of permanent staff for the financial year] x100 Liquidity Working capital Current assets compared to current liabilities [Current assets / Current liabilities] x100 Unrestricted cash Unrestricted cash compared to current liabilities [Unrestricted cash / Current liabilities] x100 Financial Performance Indicators Efficiency Revenue level Average residential rate per property assessment
140 FINANCIAL STATEMENTS 2016/2017 Page 60 Material Variations Additional renewal works were undertaken in 2016/17, in line with the move to utilising Asset Management Plans as the basis for renewal modelling. Council's strategic intent is to adequately fund asset renewal into the future. Large loan has been drawn down in 2016/17 to assist with the completion of capital expenditure program. Loan repayments are slightly higher in line with profile of borrowings and refinancing during the period. The decrease in 2016 due to refinancing an interest only loan. A new loan of $17M in the period increased non- current liabilities during the period. An increase of $4M for the landfill rehabilitation provision also impacted on current year, which is projected to decrease in future periods. Several items have caused the decrease in adjusted underlying surplus for 2016/17 including an additional landfill provision costs, and slight increase in direct materials, services and employee costs. Over future years, the underlying surplus is projected to improve with reduced growth in direct materials, service and employee costs. 2021 Forecasts 2018 2019 2020 2015 2016 2017 -6.35% -5.40% -12.44% -0.80% 6.92% 7.77% 8.68% 64.86% 77.09% 94.37% 103.59% 105.40% 107.88% 108.85% 34.02% 35.54% 47.56%10.90% 45.18% 3.09% 43.42% 41.65% 3.52% 39.55% 5.27%33.32% 5.50% 33.26% 5.40% 53.61% 40.13% 5.58% 38.84% 37.28% 28.10% Results Results Results e measur / indicator Council y o Cit g Dimension/ position g Greater Bendi PERFORMANCE STATEMENT Financial Performance Indicators (cont.) [Asset renewal expense / Asset depreciation] x100 Loans and borrowings Loans and borrowings compared to rates [Interest bearing loans and borrowings / Rate revenue] x100 Loans and borrowings repayments compared to rates [Interest and principal repayments on interest bearing loans and borrowings / Rate revenue] x100 Indebtedness Non-current liabilities compared to own source revenue [Non-current liabilities / Own source revenue] x100 Operatin [Adjusted underlying surplus (deficit)/ Adjusted underlying revenue] x100 Adjusted underlying result Adjusted underlying surplus (or deficit) Obligations Asset renewal Asset renewal compared to depreciation
Annual Report 2016/2017 141 Page 61 overnment grants l properties be received again during the period covered by a council's apability of the asset to its original capability a purpose for which it is restricted, and includes cash to be 0.51% 0.54% 0.52% 0.52% 0.52% 0.52% 0.52% 57.92% 65.67% 70.77% 69.42% 66.42% 66.27% 66.23% Council y o Cit g y Greater Bendi PERFORMANCE STATEMENT Financial Performance Indicators (cont.) Rates concentration Rates compared to adjusted underlying revenue [Rate revenue / Adjusted underlying revenue] x100 Rates effort Rates compared to property values [Rate revenue / Capital improved value of rateable properties in the municipality] x100 Definitions "adjusted underlying revenue" means total income other than: (a) non-recurrent grants used to fund capital expenditure; and (b) non-monetary asset contributions; and (c) contributions to fund capital expenditure from sources other than those referred above "adjusted underlying surplus (or deficit)" means adjusted revenue less total expenditure "asset renewal expenditure" means expenditure on an existing asset or replacing that returns the service c “current assets” has the same meaning as in AAS "current liabilities" has the same meaning as in AAS “non-current assets” means all assets other than current "non-current liabilities" means all liabilities other than current “non-recurrent grant” means a grant obtained on the condition that it be expended in specified manner and is not expected to Strategic Resource Plan "own-source revenue" means adjusted underlying revenue other than that is not under the control of council (including g "population "means the resident population estimated by council “rate revenue” means revenue from general rates, municipal charges, service rates and charges "recurrent grant "means a other than non-recurrent "residential rates" means revenue from general rates, municipal charges, service rates and charges levied on residentia "restricted cash" means cash and equivalents, within the meaning of AAS, that are not available for use other than used to fund capital works expenditure from the previous financial year "unrestricted cash" means all cash and equivalents other than restricted cash. Stabilit
142 FINANCIAL STATEMENTS 2016/2017
Greater Bendigo City Council PERFORMANCE STATEMENT Other Information
1. Basis of Preparation
Council is required to prepare and include a performance statement within its annual report. The performance statement includes the results of the prescribed sustainable capacity, service performance and financial performance indicators and measures together with a description of the municipal district and an explanation of material variations in the results. This statement has been prepared to meet the requirements of the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014.
Where applicable the results in the performance statement have been prepared on accounting bases consistent with those reported in the Financial Statements. The other results are based on information drawn from council information systems or from third parties (e.g. Australian Bureau of Statistics).
The performance statement presents the actual results for the current year and for the prescribed financial performance indicators and measures, the results forecast by the council’s strategic resource plan. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variations in the results contained in the performance statement. Council has adopted materiality thresholds relevant to each indicator and measure and explanations have not been provided for variations below the materiality thresholds unless the variance is considered to be material because of its nature.
The forecast figures included in the performance statement are those adopted by council in its strategic resource plan on 21st June 2017 and which forms part of the council plan. It should be noted that the exact method of calculation for certain ratios (e.g. adjusted underlying result) is different within the strategic resource plan. The strategic resource plan includes estimates based on key assumptions about the future that were relevant at the time of adoption and aimed at achieving sustainability over the long term. Detailed information on the actual financial results is contained in the General Purpose Financial Statements. The strategic resource plan can be obtained by contacting council.
Annual Report 2016/2017 143 Page 62 144 FINANCIAL STATEMENTS 2016/2017
Independent Auditor’s Report To the Councillors of Greater Bendigo City Council pinionIndependent I have audited Auditor’s the financial Reportreport of Greater Bendigo City Council (the council) which comprises the: To the Councillors of Greater Bendigo City Council balance sheet as at 30 June 2017 pinion comprehensiveI have audited income the accompanying statement for performance the year then statement ended of Greater Bendigo statementCity Council of changes (the council in equity) which for thecomprises year then the ended: statement description of cash flows of formunicipality the year then for the ended year ended 30 June 2017 statement of capital works for the year then ended sustainable capacity indicators for the year ended 30 June 2017 notes to theservice financial performance statements, indicators including for a thesummary year ended of significant 30 June accounting2017 policies financial performance indicators for the year ended 30 June 2017 certification of the financial statements. other information and In my opinion thethe financial certification report of presents the performance fairly, in all statement material respects,. the financial position of the council as at 30 June 2017 and their financial performance and cash flows for In my opinion, the performance statement of Greater Bendigo City Council in the year then ended in accordance with the financial reporting requirements of Part 6 of the respect of the year ended 30 June 2017 presents fairly, in all material respects, Local Government Act 1989 and applicable Australian Accounting Standards. in accordance with the performance reporting requirements of Part 6 of the sis or I have conductedLocal Government my audit in Act accordance 1989. with the Audit Act 1994 which incorporates the pinion Australian Auditing Standards. My responsibilities under the Act are further described in the sis or pinion I have conducted my audit in accordance with the Audit Act 1994 which Auditor’s Responsibilities for the Audit of the Financial Report section of my report. incorporates the Australian Standards on Assurance Engagements. My My independenceresponsibilities is established under theby the Act Constitutionare further described Act 1975. inMy the staff Auditor’s and I are independentresponsibilities of the council for in the accordance audit of the with performance the ethical requirementsstatement section of the of Accounting my Professionalreport. and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. My My independence is established by the Constitution Act 1975. I and my staff staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. are independent of the council in accordance with the ethical requirements of I believe thatthe theAccounting audit evidence Professional I have and obtai Ethicalned is Standards sufficient andBoard’s appropriate APES 110 to Code provide of a basis for myEthics opinion. for Professional Accountants (the Code) that are relevant to my audit of the performance statement in Australia and have also fulfilled our other oun i ors’ The Councillors of the council are responsible for the preparation and fair presentation of ethical responsibilities in accordance with the Code. responsi i ities the financial report in accordance with Australian Accounting Standards and the Local or t e GovernmentI believe Act 1989 that, and the foraudit such evidence internal I havecontrol obtained as the Councillorsis sufficient determine and appropriate is in n i necessary toto provideenable the a basis preparation for my opinion. and fair presentation of a financial report that is free report from material misstatement, whether due to fraud or error. oun i ors The Councillors is responsible for the preparation and fair presentation of the responsi i ities orIn preparing t e performance the financial statement report, the in accordanceCouncillors arewith responsible the performance for assessing reporting the council’s per or n e ability to continuerequirements as a going of the concern, Local Government and using the Act going 1989 concernand for suchbasis internal of accounting control st te ent unless it isas inappropriate the Councillors to do determines so. is necessary to enable the preparation and fair presentation of the statement of performance that is free from material misstatement, whether due to fraud or error.
Annual Report 2016/2017 145
Auditor’s As re uired the Audit A t res onsi ilit is to e ress an o inion r s o si i iti s or t on the erfor ance state ent ased on the audit o ecti es for the audit udit o t are to o tain reasona le assurance a out hether the erfor ance r or state ent as a hole is free fro aterial isstate ent hether due to st t t fraud or error, and to issue an auditor’s report that includes my opinion. easona le assurance is a high le el of assurance ut is not a guarantee that an audit conducted in accordance ith the Australian Standards on Assurance Engage ents ill al a s detect a aterial isstate ent hen it e ists isstate ents can arise fro fraud or error and are considered aterial if indi iduall or in the aggregate the could reasona l e e ected to influence the econo ic decisions of users ta en on the asis of this financial re ort As art of an audit in accordance ith the Australian Standards on Assurance Engage ents e ercise rofessional udge ent and aintain rofessional sce ticis throughout the audit also
identif and assess the ris s of aterial isstate ent of erfor ance state ent hether due to fraud or error design and erfor audit rocedures res onsi e to those ris s and o tain audit e idence that is sufficient and a ro riate to ro ide a asis for our o inion he ris of not detecting a aterial isstate ent resulting fro fraud is higher than for one resulting fro error as fraud a in ol e collusion forger intentional o issions isre resentations or the o erride of internal control o tain an understanding of internal control rele ant to the audit in order to design audit rocedures that are a ro riate in the circu stances ut not for the ur ose of e ressing an o inion on the effecti eness of the council’s internal control e aluate the o erall resentation structure and content of the state ent of erfor ance including the disclosures and hether the state ent of erfor ance re resents the underl ing e ents and results in a anner that achie es fair resentation co unicate ith the ouncillors regarding a ong other atters the lanned sco e and ti ing of the audit and significant audit findings including an significant deficiencies in internal control that identif during audit
E B E i oughnan Se te er 01 s d t or t Auditor r o i tori
146 COUNCIL OFFICES
City of Greater Bendigo office locations Adam Street Depot Bendigo Art Gallery and service points: 64 Adam Street, Golden Square 42 View Street, Bendigo T: (03) 5434 6088 Main Office Planning, Building, Engineering and E: [email protected] 195-229 Lyttleton Terrace, Bendigo Environmental Health Reception W: www.bendigoartgallery.com.au T: (03) 5434 6000 15 Hopetoun Street, Bendigo Capital Venues and Events F: (03) 5434 6200 Jaara Building 50 View Street, Bendigo E: [email protected] Corner Mundy Street and Lyttleton T: (03) 5434 6100 W: www.bendigo.vic.gov.au Terrace, Bendigo E: [email protected] 45 Mundy Street, Bendigo Parking and Animals Reception W: www.thecapital.com.au St Andrews Avenue, Bendigo 34 Mundy Street, Bendigo Bendigo Livestock Exchange Heathcote Service Centre Wallenjoe Road, Huntly 48 Mundy Street, Bendigo 125 High Street, Heathcote T: (03) 5448 8111 41-44 Mundy Street, Bendigo T: (03) 5433 3211 E: [email protected] Address: 195-229 Lyttleton Terrace, Bendigo Postal Address: PO Box 733 Bendigo VIC 3552 T: (03) 5434 6000 National Relay Service: 133 677 then quote 03 5434 6000 F: (03) 5434 6200 E: [email protected] W: www.bendigo.vic.gov.au