Annual report 2010-2011 Contents
Section 1 3 Our Annual Report n Shire Profile 3 This report documents Council’s performance n Our Purpose and Values 4 during 2010-2011 against the n Strategic Framework 4 2009-2013 Council Plan and the 2010-2011 Budget. It also highlights achievements n The Year in Review 5 and disappointments for the year, and the n Key Events and Initiatives 6 challenges and key programs for the year n Message from the Mayor & CEO 8 ahead. n Financial Snapshot 10 n Our Councillors 12 This report also includes comprehensive n Our Organisation 14 corporate governance information and Section 2 15 detailed audited financial statements. Section 3 21 An Annual Report is required to be prepared and lodged each year under the Section 4 25 Local Government Act. Section 5 31 Section 6 34 Front cover photographs: Section 7 37 Main picture - Central Springs, Hepburn Springs Section 8 41 Bottom L to R - Clunes Town Hall, Creswick town scene, Trentham Railway Station, Daylesford Lake and Boathouse cafe Section 9 44 Photos courtesy of Dale Callahan
Street parade at Chillout, Daylesford
2 Hepburn Shire Council Annual report 2010-2011 Shire profile Section one Location through to the late 1800s, when gold supplies waned and Hepburn Shire is located in the Central Highlands region of many mines were closed, leading to population loss. Land was Victoria, about 110 kilometres north-west of Melbourne. The then used mainly for timber milling and grazing. The townships Shire is bounded by Central Goldfields and Mount Alexander of Daylesford and Hepburn/Hepburn Springs benefited from Shires in the north, Macedon Ranges Shire in the east, tourism during the late 1800s and early 1900s, due the attraction Moorabool Shire in the south, and the City of Ballarat and of the mineral springs and the areas becoming spa resorts. Pyrenees Shire in the west. Formation Population Growth Characteristics Hepburn Shire was created in January 1995 by the Hepburn Shire is a predominantly rural area, with many amalgamation of the former Shires of Creswick, Daylesford and townships, villages and rural-residential areas. The main Glenlyon, the Clunes portion of the Shire of Talbot and Clunes, 2004 – 14,347 townships are Daylesford, Hepburn Springs, Creswick, and the Trentham portion of the Shire of Kyneton. 2005 – 14,204 Clunes and Trentham. Rural land is used largely for agriculture 2006 – 14,216 (particularly sheep and cattle grazing and potato and crop Population 2007 – 14,319 growing) and forestry, with some viticulture. Tourism is an At 30 June 2010, the estimated population of the Shire was 2008 – 14,489 important industry, with the Shire containing 80% of Australia’s 14,974 – an increase of 1.09% from 2009. mineral spring reserves. 2009 – 14,803 2010 – 14,974 Population Growth History 15,000 Hepburn is named after Captain John Hepburn, an early Source: Australian Bureau of Statistics, Cat. No. squatter who established the Smeaton Hill Run. 12,000 3218.0 - Regional Population Growth, Australia,
The original inhabitants of the Hepburn area were the Jaara (Dja 9000 2009 Dja Wurrung) Aboriginal people. European settlement dates 6000 from the late 1830s, with land used mainly for grazing and crop growing. 3000
0 Gold was first discovered in the area in 1851, prompting the 2004 2005 2006 2007 2008 2009 2010 establishment of many townships. Rapid growth took place Source: Australian Bureau of Statistics, Cat. No. 3218.0 - Regional Population Growth, Australia, 2009
Hepburn Shire Ward Map
Annual report 2010-2011 Hepburn Shire Council 3 Shire profile
Fundamental Initiatives Commenced/Completed Fast Facts Commitments Area – 1,470 square kms Good Governance 25 24 Length of local roads – 1,115 kms Number of property assessments – 10,421 A More Prosperous 16 16 Economy Males – 6,675* Females – 7,058* Healthy Safe & Vibrant 17 17 Australian Citizens – 12,414* Communities * based on 2006 ABS statistics Environmental 17 13 Sustainability Total 75 70 Our Purpose The Shire’s 2009-2013 Council Plan defines four The Annual Budget is then framed within this Plan, taking fundamental commitments of Council: into account the activities and initiatives included in the n We will deliver good governance to the Hepburn Shire Annual Budget which contribute to achieving the objectives n We will help improve economic prosperity specified in the Council Plan. n We will assist our residents to improve the health, safety and vibrancy of our communities The diagram below depicts the strategic planning framework n We will guide our Shire towards environmental of Council. sustainability Strategic objectives Medium term planning Strategies Our Values and sustainability Council Plan Strategic indicators Strategic resource plan n A ccountability - We will be responsible for our choices. (4 years) (incl standard statement) We will acknowledge and learn from our mistakes Standard statements n Respect - We will accept people’s differences. We will Short term planning Activities & initiatives Budget Key strategic activities look for the best in people and value their contribution. We (12 months) Other information will treat people with respect and dignity n E xcellence - We will perform to our best ability. We will Standard statements Accountability Audited Financial statements commit to learning and growing. We will strive to achieve (Year end) Statements Performance statement the organisation’s long term vision n T rust - We will encourage creativity and innovation. We will value everyone’s contribution. We will lead by example. We will act honestly n Fun - We will acknowledge and celebrate our successes. We believe in getting involved. We will promote a healthy sense of humour
Strategic Framework The 2009-2013 Council Plan, which makes four over-arching commitments, drives the strategic direction of Council. The Plan contains 75 specific initiatives under the headings of Good Governance, A More Prosperous Economy, Healthy Safe and Vibrant Communities, and Environmental Sustainability. Council has either completed or commenced 70 of the 75 initiatives.
Strategic Planning Framework The Strategic Resource Plan, which flows from the Long Term Financial Plan, summarises the financial and non- financial impacts of Council’s objectives and strategies and determines the sustainability of these objectives and strategies. Raglan Street, Daylesford
4 Hepburn Shire Council Annual report 2010-2011 The year in review CORPORATE PLAN ACHIEVEMENTS DISAPPOINTMENTS CHALLENGES THE YEAR AHEAD COMMUNITY COMMITMENT SATIFACTION RESULTS
We will deliver good Purchase of the new Review of all Policies not Managing flood recovery Implementation of the Overall Performance: governance to the Corporate Information completed works in tandem with Corporate Information 2010 – 56 Hepburn Shire System Further work required normal budgeted capital System 2011 – 52 Section one For more information see Purchasing Policy to complete all Asset works Undertaking formal page 15 updated and Preferred Management Plans Complying with the procurement training Median - 63 Supplier Register Further work required to increasing volume and for staff established action all items on the complexity of legislative Completing review of Risk Policy and Audit Register obligations Special Committees and Framework adopted Managing the asset Advisory Committees Community Engagement renewal gap Framework adopted Working towards financial Road Asset sustainability Management Plan and Bridge Asset Management Plan adopted Review of all Council Policies commenced
We will help improve Visitor numbers increased Discretionary spending Retaining visitation Completion of Planning Town Planning Policy and economic prosperity by 30.7% declined numbers to the region Scheme Review Approvals: For more information see Overnight visitor numbers Day trip visitor numbers given strong Australian Progressing the Vincent 2010 – 49 page 21 dollar for the ‘Spa Country’ declined in the ‘Spa Street Revitalisation 2011 – 49 increased by 31.9% Country’ by 12.1% Maintaining continued Project Median - 58 Economic Development Impact of floods on growth in tourism Running a Business Expo Strategy completed local businesses and the numbers and spending in October Economic Development: Launch of ‘Buy Local – It agricultural sector Dealing with the vagaries Developing a 2010 – 55 make cents’ campaign of international forces comprehensive Events 2011 – 55 that adversely impact the Calender Attendance at draw-card agricultural sector Median - 58 events increased by 22%
We will assist our Establishment of a Application to resurface Finalising agreements and Ongoing flood recovery Local Roads and residents improve dedicated Flood Recovery Yandoit Tennis Court governance arrangements works Footpaths: the health, safety and office in Creswick unsuccessful for delivery of the new Implementing priority 2010 – 45 vibrancy of our Library Services model Approximately $5 million Closure of Calambeen projects of Walking and 2011 – 41 communities of flood recovery works Dive Tower Developing a shared Cycling Strategy For more information see undertaken vision for the future Median - 48 page 25 Home and Community Finalising Library Service Glenlyon Action Plan Care (HACC) targets not management and use of agreements Health and Human completed and Lyonville met the ARC Indoor Recreation Services: Facility Development of an Early Community Plan reviewed Years Plan 2010 –75 and updated 2011 – 75 Review of Library Services Median - 75 completed 20,000 people attend ‘Chillout’ Near completion of Doug Lindsay Recreation Reserve Draft Walking and Cycling Strategy developed Municipal Fire Management Plan updated
We will guide our Shire Development of Draft Energy Descent Plan not Ongoing management Developing the Energy Waste Management: towards environmental Sustainability Strategy completed of the volume of flood Descent Plan 2010 –61 sustainability recovery works, and Implementing internal Building emissions Finalisation of Waste 2011 – 63 For more information see sustainability initiatives increased by 3% associated lack of Management Strategy page 31 available contractors to Median - 72 Creation of two undertake the work Undertaking retrofits to Community Gardens Council’s top four energy- Finding alternative emitting buildings Establishment of Waste funding sources in lieu Resource Management of Climate Communities Completion and launch of Steering Committee Program being abolished Sustainability Strategy Development of draft Managing the spread Management Plan for the of exotic flora species Central Springs Reserve due to extreme weather Trewella Farm receives conditions Council’s inaugural Sustainability Award
Annual report 2010-2011 Hepburn Shire Council 5 Key Events and Initiatives
July, August, September n Council adopts Heatwave Strategy n A short-term interest free loan was granted to the n John Lenders MP State Treasurer visited Creswick and Trentham & District Community Bank Committee to fund announced funding for the Creswick Bowling Club a feasibility study for the Trentham Community Bank – n Council applies for Flood Recovery Grants Bendigo Bank n Council awards contract for road re-seals n Community Engagement Framework adopted by Council n Over 30 representatives of Creswick community groups n Council designates Neighbourhood Safer Places (NSPs) came together at the Creswick Community Summit to for Creswick, Daylesford, Clunes, Trentham and Glenlyon discuss the Creswick Community Plan and priorities going n ‘Words in Winter’ events held across the Shire forward n U3A Hepburn celebrated its 10th anniversary n Over 100 people attend 2010 Daylesford Debutante Ball n September flood events in Creswick and Clunes – at the Daylesford Town Hall Municipal Emergency Co-ordination Centre established, n Mayor Cr Janine Booth opens Swiss Italian Festa sandbags delivered, roads closed. Relief Centres opened n Daylesford Sustainable Building Expo held in Creswick and Clunes n Dreamfest Youth Festival FReeZa held n Forest Resort, Creswick provides accommodation for n Cr Rod May is elected Mayor, taking over from Cr Janine flood impacted residents Booth n Council’s Post Impact Assessment Team take to the n Council joins with Hepburn Health Service to thank 200 streets of Creswick and Clunes to assess flood damage community service volunteers with a celebratory lunch at n Council provides assistance to flood affected residents - Newlyn Skips, clean-up, recovery centres n Annual Daylesford Highland Gathering n Clunes Ceramics Awards presented n Daylesford New Year’s Eve Gala n Glenlyon residents come together to develop a Community Plan January, February, March n Glenlyon Sports Day October, November, December n January 13 and 14 flood events in Creswick and Clunes n Council allocates $20,033 to 21 groups - Community – Municipal Emergency Co-ordination Centre established, Grants Round One 2010-11 Relief & Recovery Centres opened in Creswick and Clunes n Council appoints Freight Strategy Steering Committee n Council undertakes post impact assessment of houses and buildings effected by floods n Council, in conjunction with North Central Catchment Management Authority, emergency services and Department of Human Sservices hold post flood Community meetings in Creswick and Clunes n Council awards tender for 38.6 kilometres of gravel re- sheet works for flood damaged roads in Hepburn Shire n Presentation of 2011 Australia Day Awards recipients and various Australia Day events held across Hepburn n Regional Producers Day n Council awards 4 Sustainability Grants – value $13,500 n Council appoints Hepburn Shire Waste Resource Management Strategy Steering Committee n Hepburn Shire Womens Honour Roll Civic Function held on International Womens Day n The Hon Elizabeth (Jeanette) Powell Minister for Local Government and Aboriginal Affairs visits Shire to view flood damage and recovery program n Successful Chillout Festival conducted n Second annual Lyonville Fireman’s Ball n Council supports the development of a shared services library model n Council endorses the procurement of a new corporate information system Flood waters in Clunes
6 Hepburn Shire Council Annual report 2010-2011 April, May, June n Council adopts Rating Strategy n Council applies to the Australian Government (Regional Development Australia Fund) for funding support to
develop the Clunes Community and Interpretive Centre Section one n The “Burn Out” CD, a booklet to help young people out in emergency situations in a CD compilation package, launched at Daylesford Town Hall n Investment and Procurement Policy adopted by Council n Glenlyon Art Show held n Prime Minister, Julia Gillard visits flood affected parts of the Shire n Council adopts new Recreation Development Policy and new Terms of Reference for the Recreation Advisory Committee n Council allocates $15,890 to 14 groups in Round 2 of its Community Grants Program n Council demonstrates its support for community gardens and sustainable food production by resolving to enter into an arrangement with SHARE for Rae Lands Community Park to become a community garden n Council awards tender for the operation of Resource Recovery Centres in Creswick, Daylesford and Trentham n Clunes ‘Back to Booktown’ event Street parade at Chillout, Daylesford n Victorian Premier, Ted Baillieu visits the Shire and hosts a morning tea in Creswick to say thanks to all who helped n 23 young people (nominated by community groups and during the floods individuals across the Shire in the fields of Arts, Music, n Council awards tender for Gravel Road Re-Sheets and Volunteering, Sportsperson, Leadership, Employee, Shoulder Repair Program in flood affected areas Drama and Caring for Others) were presented with n Annual Trentham Spudfest annual Youth Recognition Awards during National Youth Week
Enjoying FReeZa Dreamfest Youth Festival Annual report 2010-2011 Hepburn Shire Council 7 Mayor and CEO message
We are pleased to present to our community the 2010-2011 Annual Report of the Hepburn Shire Council.
The last 12 months have seen a mixture of achievement and difficulty for our community and Council.
We have made significant progress in focussing our attention on how we can be a more progressive and responsive Council. In particular, we have invested considerable time and effort into laying the foundations for achieving more inclusive community engagement in the many projects we need to deliver for our residents and ratepayers.
We have also taken the major step of investing significant money in the purchase of a new corporate information system which will give us the necessary technology to operate and manage a modern organisation. Our internal houses, businesses and infrastructure, there was just as systems had become far too antiquated, and we now look much ‘behind the ‘scenes’ activity from volunteers in caring forward to achieving greater efficiencies in the way Council for children, minding a business for a few hours or clearing operates once the new system is in place next year. a garden. The magnitude of the assistance provided by the various agencies was extreme, and the level of support A further step that will see us achieve cost-efficiencies in our provided by everyone was truly magnificent. operations was the updating of our procurement procedures and establishment of a ‘preferred supplier’ register. This Over the year, Council spent around $5 million on flood register recognises Council’s strong commitment to recovery works, and there is still a lot more to do in 2011- supporting local businesses and provides advanced financial 2012. In particular, road and bridge repairs are quite rigour to our procurement and tendering processes. significant and many of our recreation reserves still require further enhancement. As we all know, people in the communities and surrounding areas of Creswick and Clunes experienced repeat flood The support of the State Government in funding the recovery events in September 2010 and then again in mid-January works has been greatly appreciated by the Shire, and we and early February 2011. The physical damage caused remain committed to completing all works as soon as to family homes, businesses and community recreation possible and providing on-going support to people affected facilities was extreme, and the impact on Council’s assets by the floods. such as roads, bridges and footpaths has presented major challenges for the Shire. Working with our Community Council is acutely aware of the criticism it receives from time And as everyone worked tirelessly to help rebuild people’s to time on the need to capture and respond better to the lives and our local road network and community assets, diversity of views in our community. Recognising this fact, we still had to get on with the business of working with Council looked at the way other organisations engaged with our community to provide the core services that everyone their communities, and investigated ‘best practice’ models expects from us. of engagement. Subsequently, a Community Engagement Framework was endorsed by Council during the year which Responding to Adversity is based on the acclaimed International Association of Public The true resilience of our community, and the willingness Participation’s (IAP2) engagement principles. of people to lend a hand, was never more evident than following the floods during the year. The dedication and During the year some significant milestones were achieved hard work of volunteers, including our own staff, made such in developing an array of plans and strategies. Asset a tremendous difference to the recovery effort - whether Management Plans for our roads and bridges were adopted, it was clearing mud and slush from houses, debris from a and an Economic Development Strategy was completed. fence line or filling and shifting sandbags. Community Plans are an important way of building the And while there was much to be done in repairing damaged social fabric of our towns, and we are pleased to report
8 Hepburn Shire Council Annual report 2010-2011 the Glenlyon Action Plan was completed and the Lyonville We continued our strong support for local groups by Community Plan was reviewed and updated. In addition, allocating $38,821 to 35 projects in Council’s Community a Reference Group of residents was established in the Grants program. In addition, the Daylesford Community Section one Sailors Falls, Musk Vale and Leonards Hill area to begin Band, Creswick Municipal Band and Trentham and District a community planning process. We are particularly Historical Society were provided fixed grants of $1,000 each. pleased that Community Plans are now in place for seven We were also pleased to provide four Sustainability Grants to communities across the Shire. local organisations and assist with the establishment of two community gardens. Many of our residents and ratepayers choose to live in our Shire because of its natural environment and the many Looking Ahead opportunities that are presented to enjoy a healthy lifestyle. Council commenced a planning scheme review during the The strength and depth of our community’s desire to pursue year, and its completion in 2011-2012 will provide greater healthy activities was no more evident than the extent of clarity to the many vagaries of our planning system. community interest and input to the development of a draft Walking and Cycling Strategy. The Vincent Street Revitalisation Project will gather pace during the early part of next year, and will be one of the most More than 150 residents and stakeholder organisations significant projects of its kind to be undertaken in Daylesford. provided input to the draft Strategy, and put forward around 440 ideas, suggestions and recommendations. Suffice to Other significant activities for the year ahead include finalising say, the draft Strategy is a glowing example of listening to a Waste Management Strategy for Council, finalising our community, and subsequently, a tremendous reflection of and launching the Sustainability Strategy, developing an their wants and desires. It is now up to Council to endorse Early Years Plan, implementing actions of the Economic the final Strategy, and then work hard to fund and implement Development Strategy, reviewing Council’s Special and the key initiatives. Advisory Committees, and undertaking retrofits to Council’s top four energy-emitting buildings. We also made good progress in developing a draft Sustainability Strategy, and this too involved an extensive A particular challenge for the year ahead will be finalising engagement program with members of our community. the governance and decision-making frameworks for the Again, Council looks forward to endorsing the completed new management and delivery model of our libraries, Strategy in early 2011-2012. and ensuring our libraries have adequate funding to meet community needs. Investing in our Community Council continued to provide strong support to the many The extreme events and climatic conditions of the year have community organisations and local events that help placed additional pressure on both Council and external showcase our region, its surrounds and the unique character resources. However, through this adversity we have learnt of our people. Record crowds attended our draw-card many lessons, and our emergency response plans and events including Chillout, Clunes Back to Booktown and the processes have since been the subject of exhaustive reviews Swiss-Italian Festa. and refinement.
With the support of funding from external agencies, a And of course, there are the day-to-day activities that number of improvements were made to community facilities Council will continue to provide to ensure we are meeting the such as the Community Halls in Bullarto, Lyonville, Leonards customer service needs of our residents and ratepayers. Hill and Glenlyon, and the Trentham Recreation Reserve and our swimming pools. The Creswick Museum also benefitted On behalf of Councillors and staff, we would like to thank all from restoration works costing nearly $100,000. the individuals and organisations that have assisted with the many events and activities run by Council, and for taking part The development of the Doug Lindsay Reserve in Creswick in the numerous community consultation and engagement is well on track to be completed by the end of the year, with programs run throughout the year. handover of the facility to Council scheduled for August 2011 and all sports expected to resume in the New Year.
One of the most significant decisions taken by Council during the year was to develop and financially support an application to the Regional Australia Development Fund for Cr Rod May Kaylene Conrick funding of the redevelopment of the Clunes Museum. In its Mayor Chief Executive Officer application, Council sought $2,709,000 for the development of the Clunes Community and Interpretive Centre, at a total project cost of $3,239,000.
Annual report 2010-2011 Hepburn Shire Council 9 Financial snapshot
Although the extreme flood events Financial strength The Balance Sheet represents the overall wealth of Council. impacted the financial results for the Net assets increased by $2.3 million to $176.1 million at 30 year, Council’s operating income and June 2011. This is a result of the increased cash balance and the increase in infrastructure assets - in particular expenditure was in line with targets. roads and buildings owned by Council as a result of its The following information relates to capital works program. However, as a result of the flood events, $5.9 million in infrastructure assets were required the ‘Financial Statements’ contained to be devalued at 30 June 2011. These assets will be in the Annual Financial Report. repaired over the coming 12 months and the value of Council’s net assets will increase as a result.
Net assets ($ Millions) In brief n Surplus of $2.17 million 173.9 176.1 n Adjusted surplus of $3.5 million (excluding flood-related 180 164.0 149.1 items) 160 140.9 n $25.6 million revenue with 53% coming from rates and 140 charges (excluding flood-related revenue) 120 n $22.1 million expenditure with 42% attributable to labour 100 services and 30% due to materials and services (excluding 80 flood-related expenditure) 60 n $169.9 million in capital assets, providing community 40 facilities, roads, bridges and other infrastructure 20 n $7.0 million (excluding flood reimbursements received in 0 2006/07 2007/08 2008/09 2009/10 2010/11 advance) in cash, an increase on last year n $3.5 million loans and borrowings, a decrease on last year Cash flow Result Council’s cash balance increased by $4.6 million to $11.8 Council achieved a surplus of $2.17 million for 2010-2011. million at 30 June 2011. This balance was significantly However, this was significantly impacted by flood recovery higher than the budgeted amount of $2.9 million due to expenditure and associated reimbursements, and the write $4.8 million being received in advance of flood recovery down of infrastructure assets damaged by the floods. The works being completed. adjusted result exclusive of the net flood factors was $3.5 million. This adjusted surplus compares favourably to the In addition, as a result of the flood events, some capital budgeted result of $1.4 million. Maintaining a positive works and special projects have not been completed surplus is an imperative component of Council’s Financial resulting in the funds remaining in cash at year end. Sustainability Strategy. Further, other State Government grants were received
Surplus ($ Thousands) Cash balance ($ Millions)
3,822 4000 11.82 3,455 12 3500 10 3000 2,277 7.20 2500 8 5.66 1500 6
1000 4 2.85 2.98 500 -291 -363 2 0 0 -500 2006/07 2007/08 2008/09 2009/10 2010/11 2006/07 2007/08 2008/09 2009/10 2010/11
10 Hepburn Shire Council Annual report 2010-2011 towards the end of the financial year that will not be spent Future Planning until 2011-2012. The development of the 2011-12 Budget was underpinned by two strategic processes undertaken over the past year The higher balances for the last three years are a result of - development of a revised Rating Strategy and a Draft 10 the State Government prepaying grant funding, as well as Year Financial Plan. These two key documents brought funds remaining in cash - as often significant capital works enhanced strategic decision-making to the 2011-12 Budget Section one and projects will span two years. and will be of great benefit to the longer term interests of our community. These were important commitments under the Capital works current Council Plan, and will provide the community with The increase in infrastructure assets is a result of Council’s greater clarity around annual budget setting processes. capital works program. Each year in its Budget, Council allocates on average $6.3 million towards capital works. In The revision to the 10 Year Financial Plan enabled Council 2010-2011, Council allocated 60% of this capital budget to to focus on core objectives set in the 2007-2017 10 Year renewal of Council’s roads and bridges. Financial Plan - including delivering acceptable levels of service to the community; ensuring that debt levels stay at Council spent $8.7 million in capital works during the an acceptable level; reducing Council’s infrastructure funding year - including $3 million on the Doug Lindsay Recreation gap; increasing Council’s working capital ratio and most Reserve in Creswick. The renewal of assets represented importantly, achieving financial sustainability into the future. 73% of the total spend – which is a major focus for Council as it works towards decreasing the infrastructure gap.
Capital Works ($ Millions)
10
8.7
6.4 6.5 5.8 5 4.2
0 2006/07 2007/08 2008/09 2009/10 2010/11 Olivia White, Administration Support Officer at Hepburn Shire Council
L to R: Cr Don Henderson, Kaylene Conrick - CEO, Jill Berry - Sustainability Coordinator, Mayor Cr Rod May and recipients of Council’s Sustainability Grants; Laurel Freeland - SHARE, Alistair Grant and Kate Redwood - Daylesford Netball and Football Club, Tanya Black - Refit & Save; Kim Gillott - Creswick Neighbourhood House; John Sayers - Clunes Neighbourhood House
Annual report 2010-2011 Hepburn Shire Council 11 Our Councillors
Mayor Cr Rod May Representing Hepburn Shire on the Municipal Association of Birch Ward Victoria, Timbertowns Victoria and the Highlands Regional First Elected – November 2008 Waste Management Group has also been most rewarding.” Cr May is an organic farmer and has also worked in the organic Cr Tim Hayes sector in standards, regulations and Cameron Ward development. He has a background First Elected – March 2006 in public land management and Resigned – 23 May 2011 conservation, and privately pursues interests in farm and Cr Hayes has lived in Clunes for 12 household renewable energy and self-reliance. years and operates a retail business. Prior to moving to Clunes, he was “One of my main highlights for the year has been assuming a local government professional the role of Mayor – which I have been privileged to for over 25 years - holding senior positions in the former undertake. Projects and community initiatives such as municipalities of Kilmore and Richmond. He has a Diploma the opening of Hepburn Wind, the community garden in Local Government Administration and an Arts Degree, movement, the establishment of the Jubilee Lake Co- majoring in history and politics. He has been involved in a operative and Council’s support of the assignment of the number of community organisations including the Clunes lease of Jubilee Lake Holiday Park to the Co-operative and Tourist & Development Association and Creative Clunes. the Shire’s own movement towards revising the Planning Until May 2011, he was Council’s representative and Chair of Scheme are also key highlights for me.” the Central Highlands Regional Library Corporation.
Deputy Mayor Cr Sebastian Klein “My major highlight was the decision to include the proposed Coliban Ward Clunes Community and Interpretative Centre as a priority First Elected – November 2008 project in the Central Highlands Regional Plan, and the Pursuing his interests in sustainability decision by Council to submit this project for funding under and agriculture, Cr Klein is nearing the Regional Development Australia Funding program.” the end of his Bachelor of Ecological Agriculture. He is also engaged as a rural contractor and employed in the Cr Don Henderson Garden of St. Erth in Blackwood, just outside Hepburn Shire. Creswick Ward First Elected – November 2008 “My highlights for the year have included the increased Cr Henderson commenced his career level of trust and communication between Hepburn Shire as a carpenter and joiner and is now and the Trentham Forum. I also enjoyed the experience of retired. He worked in all facets of seeing Coliban Ward on foot - as I walked from Trentham to building and construction - domestic, Daylesford along the old railway line.” civil, commercial and demolition. He spent many years in industrial relations and health and safety. Cr Bill McClenaghan He was a director of Tripstop - a new construction product – Holcombe Ward being actively involved in marketing locally and overseas. First Elected – November 2005 Cr McClenaghan trained as a “My standout highlight for the year was the return of a train secondary teacher at Monash service in Creswick. The most devastating thing was the University and worked in State three flood events, but as it turned out, it also showed the Secondary Schools for 17 years true resilience, determination and strength of our community. teaching History, Geography and Work The other highlight was seeing the near completion of the Education. He continued teaching part-time after starting Doug Lindsay Recreation Reserve.” several local businesses. Today, he works in more active outdoor vocations as a self-employed contractor. Cr Janine Booth Creswick Ward “Developing a new Municipal Emergency Management First Elected – November 2005 Plan, especially after the Creswick and Clunes floods, has Cr Booth owns and operates the been a particular highlight for me. Other highlights have Creswick Post Office which she included the development of Community Plans for Glenlyon, purchased following a 30 year Franklinford, Yandoit and Clydesdale and other small management career with Australia Post. communities like Drummond and Wheatsheaf/Coomoora.
12 Hepburn Shire Council Annual report 2010-2011 Cr Booth has a long history of community involvement and “During the year I have been pleased to see progress on a volunteerism in the Creswick area, and is currently a Director range of important local projects and initiatives. These have of the Creswick Community Bank. included the Daylesford Community Park, funding for the Vincent Street Streetscape and the opening of the Wombat
“This year has seen the advancement of many important Hill Kiosk. Other highlights have included the formation Section one and long-awaited Creswick Ward Community projects. It is of Daylesford Macedon Ranges Tourism, community rewarding to see our community working co-operatively with participation at the ARC, establishment of a Community Council to ensure the safety and wellbeing of residents. Our Garden and great crowds at ANZAC services and other much improved community infrastructure and services are commemorations and festivals.” well utilized and increasingly responsive to the community’s needs.”
Cr Jon Barrell Birch Ward First Elected – November 2008 Cr Barrell has lived and worked in Hepburn Shire for 25 years. He is a General Medical Practitioner and practices in both Daylesford and Trentham.
Annual report 2010-2011 Hepburn Shire Council 13 Our Organisation EXECUTIVE MANAGEMENT TEAM
Kaylene Conrick Chief Executive Officer Masters in Business Administration (Public Administration) Post Graduate in Management. L to R: Kathleen Brannigan, Jeff Saker, Kaylene Conrick, Evan King and Barry Green Kaylene joined Hepburn Shire in August 2008 as Chief Executive Officer. Kaylene’s extensive local government experience spans 19 years working in rural and regional Victoria across areas of the fields of planning, natural resource management, building, business management, governance, and community development. environmental health, civil and building construction. Previous positions held include Chief Executive Officer, Borough of Queenscliffe, Director Community & Corporate Services, Mansfield Kathleen Brannigan Shire Council and Director of Transition, Delatite Shire Council. Acting General Manager Community Development Bachelor of Arts (Honours) Jeff Saker Master of Social Policy (current) General Manager Infrastructure Kathleen joined Council in March 2009 as Manager Community Associate Diploma Applied Science (Natural Resource Management) Strengthening and has been Acting General Manager Community Jeff joined Hepburn Shire in March 2011. Prior to his current role, Development since March 2011. Kathleen has a background in he was General Manager City Services at the City of Darebin for community development and social policy, and has worked in the almost 10 years. Prior to this, Jeff was employed by Parks Victoria social housing field in both the State Government and not-for-profit where he gained a diverse range of experience in the management sectors. of Urban, National and Coastal Parks. Evan King Barry Green General Manager Corporate Services General Manager Sustainable Development Bachelor of Business (Accounting) Graduate Diploma in Rural and Regional Planning Associate CPA Diploma in Natural Resource Management Evan joined Council in his current role in October 2010. Prior to Masters in Community Planning (current) this, Evan held roles as Business Manager, The Salvation Army, Barry has spent 26 years working in local government. He Finance Manager with Mars Confectionery Australia and Financial commenced his career in 1985 with the (then) City of Bendigo. Accountant for Friction Materials Pacific (Bendix Mintex). Since that time, Barry has worked predominately in regional Victoria with municipalities, State Government and private enterprise in
Chief Executive Officer
General Manager General Manager Executive Services General Manager General Manager Corporate Services Community Services Infrastructure Sustainable Development
• Human Resources • Recreation • Executive Services • Major Projects • Infrastructure Planning • Legislative Compliance including: • Public Open Space • Corporate Communications • Local Laws/Compliance • Works Depots • OH&S Management • Home and Community Care • Public Relations • Emergency Management • Parks, Reserves and Gardens • Equal Opportunity • Transport Connection • Councillor’s Support • Fire Prevention • Building Works & Maintenance • Human Rights • Community Services • Governance • School Crossing supervision • Road & Bridges • Whistleblowers • Youth Services (Public Safety) • Maintenance & Construction • Freedom of Information • Regional Libraries • Immunisation • Engineering Design • Risk Management • Meals on Wheels • Environmental Health • Plant and Fleet Management • General Insurance/Public Liability • Community Visitors Scheme • Natural Resources • Waste Management • Staff Development • Arts & Culture • Sustainability • Surveying • Customer Service & Records • Community Housing • Environment Landcare • Asset Management • Governance • Community Strengthening • Building Services • Street Lighting & Cleaning • Information & Technology • Recovery Management • Waste Management • Traffic & Drainage • Privacy • Family & Children’s Services • Strategic & Statutory Planning • Major Projects Construction • Leases • Events • Planning Compliance • Roadside and Urban Street • Contract Management • Community Grants • Economic & Tourism Development Vegetation • Property Services – Civic facilities • Community Planning • Events • Mineral Springs Reserves and • Rates/Revenue collection • Contract Services • Visitor Information Structure Maintenance • Financial Management • Statutory Reporting • Organisation Development and Planning
14 Hepburn Shire Council Annual report 2010-2011 Good Governance Section two “We will deliver Good Governance External n Victorian Auditor General’s Office – Annual Financial Audit to the Hepburn Shire” and Mid-year Review n Department of Planning and Community Development Council is committed to the following Inspectorate - Audit of Compliance with the Local principles of Good Governance: Government Act n A sound working relationship between Councillors and n JLT Municipal Asset Protection Plan - Property Risk Audit Shire Management n JLT Municipal Asset Protection Plan – Commercial Crime n Long term financial sustainability for the future and Fraud Risk Audit n Effective community engagement n Civic Mutual Plus – Public Liability Risk Progress Review n Transparent decision making n Victorian Auditor General’s Office – Business Planning n Strong advocacy for Hepburn Shire for Major Capital Works and Recurrent Services in Local Government
Highlights Internal n Project Job Costing Review of Special Committees and Advisory n Workplace and Succession Planning Committees n Asset and Property Management A review of Special Committees and Advisory Committees commenced during the year to assess their relevance and Adoption of Risk Policy & Framework contribution to Council. The review considered the ability A full review of Council’s existing Risk Policy was of Committees to work within the Governance framework undertaken and a Strategic Risk Management Framework required by the Local Government Act 1989. In addition, was subsequently adopted. Robust tools for identifying, registers have been developed to record all the relevant assessing and managing risks were development, which information pertinent to Special Committees and Advisory will enable Council to further embed risk management in Committees. This will provide a single depository for up to everyday activities. date information relating to these Committees. Adoption of Community Engagement Framework Procurement Council formally adopted the International Association Council’s Purchasing Policy was updated to provide process of Public Participation’s (IAP2) framework for community templates, with an emphasis on probity and value for money. engagement as the model for achieving open, participatory In addition, a number of approved and compliant Preferred and transparent decision-making and community Suppliers were established where “economies of scale”, local involvement. supply (where appropriate) and regulatory compliance will be achieved. Further process improvements and efficiencies Asset Management Plans have been gained by raising annual purchase orders against The Road Asset Management Plan and the Bridge Asset supplier contracts rather than the multi-transactions which Management Plan were endorsed by Council during the year. have occurred in the past. The development of an Open Space Asset Management Plan also commenced during the year and is expected to be Purchase of Corporate Information System completed during 2011-2012. These Asset Management Following an extensive tender process, Council awarded the Plans provide a method of life-cycle costing for maintaining contract for the supply and installation of a new Corporate Council’s assets in line with the 10 Year Financial Plan. Information System to Technologyone. The new Corporate Information System will provide Council with the necessary Financial Sustainability tools to manage a modern organisation and more efficiently Hepburn Shire Council was one of 18 Council’s identified in meet the service needs of our ratepayers. The new system the ‘Local Government Financial Sustainability – Focus on will provide access to a robust central property database Small Rural Councils’ Report, written by Merv and Rohan with seamless integration to planning and building databases Whelan, as not being in a position of relative financial and mapping software. It will also greatly improve Council’s sustainability to adequately service its community. financial, project, contract and asset management systems, processes and coordination. Based on the Report’s findings, Council officers conducted briefing sessions with Councillors on the implications Internal & External Audits of the Report and also the Victorian Auditor General’s A number of internal and external audits were undertaken Office Financial Sustainability Indicators. The purpose of during 2010-2011 including: the briefing sessions was to provide Councillors with a Annual report 2010-2011 Hepburn Shire Council 15 Good Governance contextual understanding of financial sustainability prior to did not allow the focus and resources required to complete developing the 10 Year Financial Plan 2011-21 and 2011-12 the review of all Policies. The Policy Review Project will Budget. continue to be a focus in 2011-2012.
Adoption of Policy Framework Asset Management Plans A new Policy Framework was adopted during the year. The Although significant progress has been made on completing objectives were to enable staff to understand what a policy Asset Management Plans for all the Shire’s assets, a is to Hepburn Shire Council and where policies fit into our significant body of work still remains to complete the document structure. The Policy Framework allows Council outstanding Plans and to determine service levels. to improve how it develops, implements and manages policies, and how they link with Council Plan objectives. The Internal and External Audit Register Framework formed the basis of the Council Policy Review A concerted effort was made to action all recommendations Project that commenced during the year (see below). on the Audit register. However, progress on implementing some of the recommendations has been sluggish. An Council Policy Review Project emphasis will be placed on implementing a greater A full review of all Council Policies commenced in 2010-2011. proportion of recommendations in 2011-2012.
Policy Date Adopted Challenges Hardship Policy 15 March 2011 Revenue Policy 15 March 2011 Floods Privacy Policy 19 April 2011 Given the significant volume and cost of the flood recovery Procurement Policy 17 May 2011 works, the challenge over the next 12 months is to ensure Investment Policy 17 May 2011 the work is completed in parallel with normal budgeted Recreation Development Policy 17 May 2011 capital works. For this reason, a separate Flood Office has Complaints Handling Policy 28 June 2011 been established to manage the flood recovery works - Youth Policy 28 June 2011 allowing officers to concentrate on scheduled works. Events Policy 28 June 2011 Risk Management Policy 28 June 2011 Legislative Compliance Borrowings Policy 28 June 2011 The increasing volume and complexity of Council’s legislative obligations presents an ongoing challenge for Council to stay The Council Policy Review Project will continue into the abreast of the changes and ensure that Council is compliant. 2011-2012 financial year. Managing the Demand for Rating Strategy Asset Maintenance and Renewal Council adopted its first formal Rating Strategy in May The maintenance and renewal of roads, bridges, footpaths 2011. Issues such as “capacity to pay” were considered in and buildings continues to be an ongoing and significant determining what share of the rate revenue each ratepayer challenge. Council’s commitment to increase funding for the will contribute. The Strategy was adopted following an renewal of ageing infrastructure, combined with the State extensive community engagement process, including two Government’s injection of additional funding will help to ease community workshops, discussions with various Community the problem. However, there still remains a significant gap and Advisory Groups and a public submission process. between what Council is spending and what is required to maintain the Council’s assets at a level that meets the Best Value community’s needs. Council is committed to periodic reviews of services against best on offer in both the public and private sectors. During Financial Sustainability the year, Council reviewed the provision of Library Services, Council continues to be challenged in terms of its long- Aged and Disability Services, and Youth Advisory and term financial sustainability due to population size, sparsity, Engagement. dispersion and remoteness. The Shire’s population is spread between several urban communities and surrounding Disappointments districts which increases the cost of providing services.
Policy Review Review of Internal Processes and Policies Although a significant number of Council Policies were While significant progress has been made in reviewing reviewed, this was less than planned. Competing priorities processes and policies, there is still significant work to be
16 Hepburn Shire Council Annual report 2010-2011 done in this area. Processes and policies require regular The expected completion date for total implementation is review and modification to ensure they are compliant with September 2012. legislation.
Procurement Training Section two The Year Ahead All staff with a financial delegation will undertake an accredited Procurement and Contract Management training Corporate Information System course during 2011-2012 - designed in collaboration with The System will be rolled-out in three phases across the the University of Ballarat. The course will be specifically organisation during 2011-2012, with a scheduled ‘go live’ tailored to Council’s Policies and Procedures. date for the first phase of 14 February 2012. The three phases are: Review of Special Committees and Advisory Committees n Financials, Supply Chain, Contracts, Enterprise Budgeting, As a result of the review of Committees in 2010-2011, Payroll an education program for Committee members will be n Asset Management undertaken during 2011-2012. Further work is required n Property and Rating to review the effectiveness and relevance of all Council Committees to determine if they are operating under the correct structure and, if indeed, they are still required.
Fast Facts Service Statistics for the Year n 28 positions advertised n 10,421 property assessments n 1,589 pension rebates granted n 7% of rates outstanding at year end n Average rate and charges per assessment was $1,296 n Average Capital Expenditure per assessment was $830 n 552 km of sealed roads n 563 km of gravel roads n 28 km of footpaths n 126 km of kerb and channeling work n 136 Bridges n 34 km of drains n The average number of phone calls received per month was 1,164 n 53,907 receipts issued n 468 customer requests received.
Wombat Hill Gardens, Daylesford
overall performance Advocacy engagement 100% 100% 100% Community Satisfaction Result for Community Satisfaction Result for Community Satisfaction Result for overall performance Council’s advocacy and community Council’s engagement indecision representation on key local issues making on key local issues
58% 61% 56% 57% 57% 52% 54% 54% 51% 50% 50% 50%
0% 0% 0% 2008/09 2009/10 2010/11 2008/09 2009/10 2010/11 2008/09 2009/10 2010/11
Source: 2011 Local Government Community Satisfaction Survey, Wallis Consulting Group
Annual report 2010-2011 Hepburn Shire Council 17 Good Governance Achieving ‘Good Governance’ Of the 25 ‘Good Governance’ initiatives in the 2009-2013 Council Plan, 24 have either been completed or commenced to date. 2010-2011 Initiatives Asset Management Plans for both Roads and Bridges adopted by Council in August 2010 ✔ In a report to Council, 42 blocks of land were identified as being under-utilised. Twelve of the blocks are being further ✔ investigated for potential sale. Five poorly utilised vacant blocks of land have either been sold or are in the process of being sold Purchasing Policy approved by Council in October 2010 providing the organisation with more effective guidelines for all ✔ purchases Approved and compliant Preferred Suppliers to Council have been established where “economies of scale”, local supply ✔ (where appropriate) and regulatory compliance will be achieved Council adopted the Risk Framework and Risk Policy in June 2011. Workshops will now be conducted to identify Council Commenced risks Working with the community to determine the usefulness and potential benefits of developing a long term Community Vision ✘ Policy Framework developed to guide the revision, creation and implementation of Council policies ✔ Program of systematic Council policy review commenced during the year. Progress has been made with further work Commenced required to complete the review Work has commenced with the community to develop the following Strategies: Commenced • Waste Management • Freight • Walking & Cycling • Youth Greater access to demographic data has been provided to the community through the Council website. Three demographic ✔ applications are provided: • Profile ID – community profile • Atlas ID – community atlas • Forecast ID – population forecast Additional spending in excess of $250,000 committed to infrastructure assets compared to 2009-2010 ✔ Community Engagement Framework adopted by Council in August 2010 ✔ Strategic Indicators for ‘Good Governance’ Performance Target Performance Result Measure at 30 June 2011
Increase in community Annual customer contact satisfaction with Council’s 66% Target not met increased to 70% consultative processes
Underlying result $1.3 million deficit $335,000 Target exceeded
Current Ratio – Current 106% 263% Target exceeded assets/current liabilities
Operating Cash flow ratio – Net operating cash flows/ 31% 40% Target exceeded underlying revenue Borrowing ratio – Non-current liabilities/’own sourced 26% 24% Target exceeded revenue Three Asset Management Both the Buildings Asset Plans completed - Parks and Three Asset Management Plans Management Plan and Parks and Recreation, Footpaths, Kerb Target not met completed by 30 June 2011 Open Space Asset Management Plan and Channel and Furniture are in progress and Equipment
18 Hepburn Shire Council Annual report 2010-2011 Section two Section two
Views over Lake Daylesford AnnuAnnuaall reportreport 2010-20112010-2011 HepburnHepburn SShhireire CounCounccilil 1919 Phil Naylor, Plant Operator
20 Hepburn Shire Council Annual report 2010-2011 A more prosperous economy Section three
Australia’s Regions’ (April 2011), Hepburn Shire ranks 7th “We will help improve economic nationally, in order of the economic importance of tourism. prosperity” Economic Importance of Tourism Rank tourism Region state Economic total tourism We are committed to helping our citizens achieve economic importance expenditure prosperity. We understand how important it is for Hepburn of tourism % $m Shire residents to access local jobs and to invest in local 1 Central NT 24.8 411 businesses. 2 Phillip Island Vic 18.7 391 3 Whitsundays Qld 17.7 685 Economic prosperity will be achieved by supporting: 4 snowy Mountains nsW 17.1 495 n The farming sector 5 West Coast Tas 16.2 102 n Tourism 6 east Coast Tas 14.6 129 n New businesses and jobs 7 spa Country Vic 14.3 163 n Business infrastructure 8 Macedon Vic 1.2 86 (Source: Tourism Research Australia) Highlights Revenue Regional Tourism Visitations Tourism Research Australia estimates that a total of $96,000,000 Daylesford and the Macedon Ranges experienced the was spent in the region by daytrip visitors in 2010. State’s largest regional increase year-on-year in estimated visitor numbers (+30.7%), and have been able to increase Economic Development Strategy the share of visitor nights and overnights in a flat domestic In December 2010, Council received the Hepburn Economic tourism market. In addition, Daylesford and the Macedon Development Strategy with an ongoing requirement to Ranges experienced the State’s largest regional increase in “produce an Implementation Plan that will further prioritise overnight visitations from the previous year (+23.0%). the recommendations and identify resource requirements through a series of budget allocations starting with the 2011- Domestic Visitor Estimates (’000) 2012 budget process”. Year ending December 2010 2009 2010 % change In conjunction with the Economic Development Strategy, the Macedon 136 150 +10.3% Hepburn Business Plan 2011-2013 was drafted to provide Spa Country 182 240 +31.9% a working document for the implementation of priority Region 317 390 +23.0% recommendations of the Economic Development Strategy. 2009 2010 % change Macedon 372 379 +1.9% The draft Business Plan identifies key activities that will Spa Country 408 534 +30.9% underpin the economic growth of the Shire in the immediate Region 780 913 +17.1% future. These include: (Source: Tourism Research Australia National Visitors Survey) n Progress the development and implementation of the Streetscape Revitalisation Projects, starting with Vincent Macedon Ranges recorded the State’s 6th largest growth in Street Daylesford. This work will be supported by a review Daytrip visitations. Daylesford recorded the State’s 3rd largest of parking options in central Daylesford decline in Daytrip visitations. This compares with an increase of n Continue to champion funding for the Clunes Interpretive 1.8% for domestic daytrip visitor numbers to Victoria. and Community Centre. This project is seen as a significant opportunity to support existing facilities Domestic Daytrip Visitor Estimates and attractions for Clunes and will enhance the visitor 2009 2010 % change experience to the town. Such a facility for Clunes is Macedon 771 860 +11.5% expected to be a catalyst for increased tourism and Spa Country 620 545 -12.1% subsequent employment opportunities Region 1,391 1,405 +1.0% n Capitalise on the proposed Walking and Cycling Strategy (Source: Tourism Research Australia National Visitors Survey) to identify new opportunities for low-impact tourism activities in the region. The growth in participation in use of Economic Indicators tracks and trails for recreation by walkers and cyclists can Based on a report by the Department of Resources, Energy deliver a boost to the Shire due to its rich and attractive and Tourism titled ‘The Economic Importance of Tourism in natural environment
Annual report 2010-2011 Hepburn Shire Council 21 n Provide input into the review of the Planning Scheme Vincent Street Revitalisation to ensure the Shire’s future economic development Council has committed to a major project to ‘revitalise’ Vincent opportunities are supported by appropriate zoning and Street, Daylesford. Council approved an initial budget of planning scheme processes $400,000 which is funded in partnership between the Shire n Continue to encourage investment by mobile telephone ($100,000) and Regional Development Victoria ($300,000) over service providers to ensure better quality and reliability of a 2 year period. The project is broken up into four stages. services for the community and to better service the needs of visitors travelling into and through the Shire The project aims to identify social spaces for the community, to n Continue to work with our neighbouring Councils to consider the landscapes and to showcase the town and what maximise opportunities from the proposed roll-out of the it has to offer to the wider community. Community consultation National Broadband Network and engagement will be a critical component of the project.
Buy Local – It makes cents The first stage of the project will run into 2011-2012, and The ‘Buy Local – It makes cents’ campaign was launched involves scoping the project, gaining preliminary ideas from the during the year. The aim of the campaign was to encourage community, and developing an ongoing engagement plan. local businesses and residents to buy their products and services locally. A Community Reference Group and a local Design Committee (made up of local experts) is to be established to work with In the case of local businesses, the focus was on educating Council to ensure Daylesford’s unique character and style is and encouraging businesses to purchase goods and enhanced. services for their business from local suppliers wherever possible. For local residents, a marketing campaign was Disappointments developed to encourage them to buy locally through highlighting those businesses that are part of the ‘Buy Local’ Businesses in Hepburn Shire experienced similar trends as in Business Directory and database. other areas, with a decline in discretionary spending.
The campaign was developed in collaboration with The agricultural sector was hit hard by the floods and wet a range of stakeholders including the Clunes Tourist weather during the year. This was particularly damaging for and Development Association, Creswick and District some of our potato farmers. Fortunately, some prices for Development Association, Daylesford District Business agricultural commodities were at a premium during the year, Group, Daylesford Macedon Produce, Sustainable Hepburn which helped to offset the impact from the wet weather. Association Renewing the Earth, Tourism Hepburn and Trentham Business and Tourism Group. Challenges
The ‘Buy Local’ Business Directory membership continues The Tourism Industry continues to be a major supporter of to grow and includes 89 businesses in Daylesford/Hepburn economic development across the Shire. During the year, the Springs, 59 businesses in Clunes, 68 businesses in Creswick exchange rate for the Australian dollar has seen increasing and 33 businesses in Trentham. numbers of Australians electing to take their holidays at overseas destinations rather than holidaying within Australia. Telecommunications During the year, Shire Officers continued to encourage Day trip visitor numbers have fallen in the Spa Region, but service providers to increase their telecommunication fortunately for the Daylesford and Macedon Ranges region, capacity in the region. One of the major service providers we have gone against the trend and continued to attract is proposing to submit planning applications for new mobile increasing numbers of overnight stays. It is reasonable to telephone towers in each of our major towns, while some presume that this is largely a result of the major campaign others are considering upgrading existing facilities. being run by Tourism Victoria. The challenge for the tourism industry will be to be strategically prepared for the time when Council has also continued to advocate for the Central this campaign ends. Highlands to be a priority roll-out site for the National Broadband Network. Our region has high quality agricultural soils, an excellent growing climate and good access to markets. However, the Drawcard Events vagaries of market supply and demand, the fluctuating trading Once again during 2010-2011, Council supported a number conditions, and international competition have caused the local of major events in the Shire. These included ChillOut, industry some hardship. Back to Book Town, Swiss Italian Festa, Words in Winter, Daylesford Highland Gathering, Daylesford and Clunes The Year Ahead Agricultural Shows, Andersons Mill Food, Wine and Music Festival, Creswick Forestry Fiesta, Glenlyon New Years The coming year will be challenging for business, but the future Sports Day, Glenlyon Fine Food and Wine Fair and the for the tourism industry continues to look promising. Trentham Spudfest.
22 Hepburn Shire Council Annual report 2010-2011 Council is optimistic the street revitalisation projects to be ‘Business Basics Workshops’ held in Creswick after the undertaken in Daylesford, Clunes, Creswick and Trentham flood events during the year will be the catalyst for further economic development in these n Working with the Daylesford and Hepburn Springs areas. Business and Tourism Association to run a Business Expo
during October 2011 Section three When the Planning Scheme Review is completed, it is n Developing a hard copy events calendar that showcases expected that it will help prepare us for applying for increased Hepburn’s events to share and circulate with neighbouring industrial and commercial zoned land, which will help the Shire Shires attract more businesses.
Other initiatives include: Planning Applications Lodged n Working with Tourism Hepburn, the Regional Tourism Board and Tourism Victoria to bring another round of 2007/08 498 Tourism Excellence Training workshops to the Shire 2008/09 409 n Developing a series of workshops and training sessions for local businesses - including a follow up to the very popular 2009/10 465 2010/11 415 Fast Facts n Employment sectors: Retail (16.1%), Accommodation, Number of Building Approvals (Dwellings) Cafes and Restaurants (14.1%), Agriculture (13.6%), 2004/05 134 Health and Community Services (13.5%) n Economic contributors: Manufacturing (16.9%), 2005/06 118 Agriculture and Forestry (12.5%), Accommodation, 2006/07 103 Cafes and Restaurants (11.3%) 2007/08 145 n 1,405,000 day visitors and 913,000 domestic visitor 2008/09 109 nights to the Daylesford and Macedon Ranges region - 2009/10 121 an increase of 17% over 2009-2010 2010/11 108 n Visits to Daylesford Visitor Information Centre - 92,784 n Visits to Creswick Visitor Information Centre - 10,236 n Estimated Major Event attendance: ChillOut (20,000), Back to Book Town (12,000), Swiss Italian Festa (12,000)
Collins Place, Clunes Annual report 2010-2011 Hepburn Shire Council 23 Achieving ’A More Prosperous Economy’ All of the 16 initiatives in the 2009-2013 Council Plan relating to ‘A More Prosperous Economy’, have either been completed or commenced to date. 2010-2011 Initiatives
Economic Development Strategy adopted by Council ✔ Stage 1 of the Planning Scheme review completed ✔ Launch of ‘Buy Local Campaign – It makes Cents’ ✔ Memoranda of Understanding to support drawcard events like ChillOut, Back to Booktown and Swiss Italian Festa completed and adopted by Council ✔ Freight Strategy Steering Committee appointed in November 2010 ✔ Waste Resource Management Strategy Steering Committee appointed in February 2011 ✔
Victoria Park Daylesford upgrade completed March 2011 ✔
Vincent Street Revitalisation Project consultation commenced ✔ Main Street revitalisation planning for Trentham and Creswick commenced ✔ Environmental Sustainability Advisory Committee members appointed in August 2010 ✔
Participation in MAV STEP Planning Program to improve planning processes ✔ Fees reduced for street furniture for local businesses ✔ Feasibility Study and funding application for Clunes Community and Learning Centre completed ✔
Lindsay Arts Trail – Stages One and Two completed ✔ Magic Pudding Playground , Creswick commenced ✔ Earthship demonstration site endorsed by Council in May 2011 ✔
Creswick Railway Workshop lease entered into with VicTrack in November 2010 ✔
Representation on ICT Forum and continued discussions with telecommunications providers to influence decisions ✔
Strategic indicators for ‘A more prosperous economy’
Performance Target Performance Result Measure at 30 June 2011
Ongoing increasing trend Figures for the region increased by 23% in 2010, with in annual visitor numbers Increase in visitation from the 2009-2010 year 390,000 domestic overnight visitors and 1.4 million day Target met as reported by Tourism trippers Research Australia
Drawcard events will Attendance levels at Chillout, Swiss Italian Festa, Back to Target continue to achieve high Attendance increased by 22% Booktown events maintained exceeded attendances
Council will complete a Main Consultants have been engaged and commenced Stage 1A Street Revitalisation Plan for Plan developed by 30 June 2011 Target met of the project Vincent Street, Daylesford
Council will conduct a review of the Planning Scheme Review existing documentation prior to the community Documentation has been reviewed and all consultation for the Hepburn Shire. The Target met consultation phase completed project is expected to take two years
24 Hepburn Shire Council Annual report 2010-2011 Healthy, safe and vibrant communities Section four “We will assist our residents improve n Stage 1 of the gravel road re-sheet program n Design, scoping, funding and construction of community the health, safety and vibrancy of our infrastructure replacements and repairs communities” n Securing of various flood recovery grants n Establishment of a Community Recovery Committee
Healthy safe and vibrant communities will flourish in the The ‘Gravel Road Re-sheets’ and ‘Shoulder Repair Program’ Hepburn Shire Council with the support of: tenders were advertised in May, with works scheduled to n Completed Community Plans commence in the second half of 2011 - subject to favourable n Satisfaction with Council’s health and community services weather conditions. Council has 288 individual projects n Revised Municipal Emergency Management Plans listed for works under this contract, with works including n Festivals and events celebrating cultural heritage and approximately 16km of gravel road repairs and 32km of diversity sealed road shoulder repairs. n Satisfaction with Council’s leisure, recreation and library services In June 2011, Council advertised a tender for the n Satisfaction with Council’s Local Laws ‘Restoration of Flood Affected Bridges and Culverts’. This tender was for the clearing of debris from structures, repair Highlights of washed out abutments, repair of bridge surfaces and the repair of guard rails. 78 individual projects have been Flood Response and Recovery identified for this tender with works scheduled to begin in The western areas of the Hepburn Shire, in particular in and October 2011. around the townships of Creswick and Clunes, suffered devastating repeat flood events in 2010-2011. Community Plans The Glenlyon Action Plan was completed during the year, Impacted residents were still recovering from the 4 with Community Plans now in place for seven communities September 2010 floods when they were again faced with across the Shire. heavy rains and severe flooding on 13 and 14 January 2011. Then again, on 4 February 2011, parts of Creswick were The Lyonville Community Plan was reviewed in November flooded, with precautionary evacuations carried out in Clunes 2010, and a Reference Group of residents was established in the face of rising creek water. to begin a community planning process in the Sailors Falls, Musk Vale and Leonards Hill area. The floods, which were mainly centred along the Creswick Creek, impacted numerous homes, businesses and New Terms of Reference for the Creswick Ward Community recreational facilities. The repeat nature of these events Committee, which advises Council about the Creswick had a major impact on the community’s ability to recover. Ward Community Plan, were adopted and a new Committee Repairs made to both private home and businesses following appointed. the first flood were in many cases washed away with the January floods. The February floods devastated communities Achievements for the various Community Planning Groups who were still coming to terms with the previous events. during the year included: n A survey of transport needs in Glenlyon Other parts of the Shire also suffered extensive damage n Lyonville Planning Group awarded Hepburn Shire due to sheet flooding across low-lying land and from other ‘Community Event of the Year’ for its 2010 Inaugural waterways, particularly the iconic Hepburn Mineral Springs Fireman’s Ball Reserve. n Council allocated $10,000 to beautify the Newlyn roundabout, and is working with residents and VicRoads In April 2011, Hepburn Shire Council established a Flood to further progress this project Recovery Office in Creswick to oversee and coordinate all n The Jim Crow Creek Community Planning Group received aspects of the recovery works across the Shire. a community grant for the development of a picnic area at Batt’s Bridge, Yandoit Immediate post flood recovery works included: n Clearing of blocked culverts Review of Library Services n General road repairs including shoulders, pavements and The Review focused on identifying whether the existing seals library service levels meet the current and future needs of n Drain infrastructure repair and increasing drain capacity in the community, including an assessment of resourcing and critical areas infrastructure requirements.
Annual report 2010-2011 Hepburn Shire Council 25 Healthy, safe and vibrant communities
Key findings of the review included: Chillout, Clunes Back to Booktown and Swiss-Italian Festa n Libraries are highly valued and the community expects - all continue to grow and flourish. Council to continue to support and enhance services n There is a need to increase the size of our libraries, Even with another wet and windy weekend for Chillout, it still especially in Daylesford attracted over 20,000 people to Daylesford, Hepburn and n Library opening hours need to be reviewed to better meet the surrounding areas. Clunes Back to Booktown continued the needs of the community its steady growth with 12,000 people attending to take part n Council needs to invest more in its libraries, especially to in reading, writing and buying books. The Swiss Italian Festa increase the size of the book collection also experienced unfavourable weather, but still attracted over 12,000 people to the region. The Review has provided a clear strategic direction for the future provision of library services in the Shire, and provides a DreamFest 2010 was the first of an annual FReeZA set of guiding principles to assist Council’s decision-making. Youth Festival in the Hepburn Shire. Held at the Hepburn Mineral Springs Mineral Reserve in December, DreamFest Youth Development was coordinated and run by a team of young, dedicated The Youth Advisory Committee was again active during the volunteers. The Festival was attended by 280 people and year, and made a number of recommendations to provide a featured young bands from Daylesford, Bendigo, Ballarat new direction for youth engagement in the Shire. and Melbourne.
Recommendations included the development of a Hepburn Doug Lindsay Recreation Reserve Shire Youth Strategy, support for locally based youth groups, Development of the Doug Lindsay Recreation Reserve youth consultations within broader community consultations, continued during 2010-2011, with the new community Quick Response Youth Grants, annual youth forums and facility nearing completion. The oval was completed and will employing young people to run youth projects. be monitored to ensure drainage is working and the grassed surface continues to flourish and stabilise before games are The first Hepburn Shire Youth Forum ran in April 2011, with played. Development of the surrounding areas continues participation from over 80 young people. The focus of with landscaping, and pedestrian access to be completed the Forum was to develop priorities for the Youth Strategy during the second half of 2011. Handover of the facility is on around youth space, education and employment. The Forum target to occur on 1 August 2011, with football and cricket was a partnership between BGT- Youth Connections and the expected to commence in the 2012 seasons. Highlands LLEN. Feedback from the Forum was positive, with participants encouraged by the opportunity to have their Community Hall Improvement Program voices heard. Significant progress was made on repairs and upgrades to Community Halls in Bullarto, Lyonville, Leonards Hill Events and Glenlyon. Air conditioning was installed, and kitchen 2010-2011 was another excellent year for events held in renovations and roof repairs were undertaken at Leonards Hepburn Shire. The largest draw-card events in the Shire - Hill. Remodelling and upgrade of toilets at Bullarto Hall also commenced during the year. Construction of a deck at Glenlyon Hall has been delayed while the new kitchen is constructed. Funding of $120,000 for the Community Hall Improvement Program was provided from the Victorian Bushfire Recovery and Reconstruction Authority.
Trentham Recreation Reserve Change Rooms New change rooms were constructed at the Trentham Recreation Reserve during the year. This upgrade provides new showers, toilets and change rooms for visiting teams and umpires, along with a massage room and storage space. Funding for the upgrade was provided from the Federal Government’s Regional and Local Community Infrastructure Program.
Swimming Pool Maintenance and Improvements Council spent $164,745 on outdoor pools in 2010-11, Displays at the Trentham Spudfest including a new pool filter at Trentham, painting and
26 Hepburn Shire Council Annual report 2010-2011 replacement of seals at Daylesford and repairs to rails and Council received the following grants from the Office of steps at Clunes. Emergency Services Commissioner (OES): n $12,300 for emergency signage kits for the outdoor crew Seasonal Pool Renewal when attending to an emergency
During the year, Sport and Recreation Victoria approved n $5,800 for emergency community all-hazard education Section four Council’s application for improvements to outdoor pools in sessions, and workshops for the community engagement Trentham, Daylesford and Clunes. In 2011-12, $204,236 will be component of developing the new Community Emergency spent on enhancing the amenity of our outdoor pools including Risk Management Plan change rooms, shade and water temperature. Of this amount, n A joint application for $17,500 with Hepburn, Mt $136,157 is State Government funds and $68,079 is being Alexander and Macedon Ranges Shires to establish a provided by Council. regional Municipal Emergency Management Group to allow a collaborative approach to emergency management Community Grants in the region. This group was subsequently established Council allocated $38,821 to 35 projects in Round One and Two of its Community Grants program in 2010-2011. In addition, an application of $70,000 was made to the OES Community Grants were allocated for Community Events, for the Lyonville fire shed project. Culture and Arts, Community Strengthening and Small Equipment. Creswick Museum Conservation Project Works to restore and enhance the appearance and condition In addition, the Daylesford Community Band, Creswick of the Creswick Museum were completed in September Municipal Band and Trentham and District Historical Society 2010 with funding from Victoria’s Heritage Grants Program. were provided fixed grants of $1,000 each. The works will help conserve the building, and enhance its use to ensure the Museum remains a community attraction. Walking and Cycling Strategy The Creswick Museum regularly hosts exhibitions featuring Following extensive community and stakeholder consultation, a art works of the Lindsay family who hailed from Creswick. Draft Walking and Cycling Strategy was completed during the year. Key themes of the Strategy are: At a cost of nearly $100,000, the works included: n Electrical upgrades n Community Health and Safety – focus on providing n Re-flooring of the entry and Conversation Room infrastructure to provide complete walking and cycling n Installation of glazed doors networks, advocating to other agencies for works to improve n Installing a new floor in the Lindsay Room walking and cycling infrastructure, and the development of n Removing asbestos and hard plastering the north wall of programs that engage community in walking and cycling Council Chamber activity n Interior painting works n Economic Prosperity – enhance and develop iconic trails and support to market trail assets and tourism opportunities Disappointments n Environmental Sustainability – incorporating principles of active design in planning and development, and the use of Yandoit Tennis Courts recycled or sustainable materials Council’s application to the Department of Planning and Community Development (Sport and Recreation) for funding More than 150 residents and stakeholder organisations to resurface the Yandoit Tennis Court was unsuccessful. provided input to the Strategy, including 442 recorded comments, ideas and recommendations.
Fire Management Council, in consultation with the Country Fire Authority, updated the Municipal Fire Management Plan, including Township Protection Plans and Neighbourhood Safety Places. These documents are reviewed on an annual basis.
Due to the wet conditions during the year, our ability to carry out grass-cutting and other fire prevention works on both public and private land was significantly limited as machinery was not able to access these areas.
Emergency Management Council’s updated Municipal Emergency Management Plan was audited and approved by the State Emergency Service during the year, with the next audit scheduled for 2013. Council roadworks
Annual report 2010-2011 Hepburn Shire Council 27 Healthy, safe and vibrant communities
Calembeen Dive Tower opportunities for more integrated services. Council will enter The Calembeen Dive Tower had to be closed due to into an agreement with the City of Ballarat for the provision vandalism, and ongoing e-coli contamination caused by the of library services in 2011-2012, and further decisions about floods. governance and decision making will be required. These decisions will shape the future model of delivering library Home and Community Care (HACC) Targets services in Hepburn Shire. Although the community continued to express a high level of satisfaction with services, targets for hours of service delivery ARC Indoor Recreation Centre, Daylesford were not met. This was a result of decreased referrals Due to ongoing concerns about the viability and level to HACC Services, and streamlined referral pathways to of participation at the ARC Indoor Recreation Centre, Contract Care. Plans have been developed to increase Council has commissioned an independent review of future service hours in 2011-2012. management options for the Centre. Work will continue in 2011-2012 to achieve a shared vision for the future Challenges management and use of the Centre.
Library Services The Year Ahead Council’s decision to support the development of a shared service model, where Council will purchase library services Flood Recovery Works from the City of Ballarat and directly employ library staff, Planned works for 2011-2012 include: presents some challenges and positive opportunities. n Stage 2 of the gravel road re-sheet program n Delivery of community infrastructure projects including: The direct employment of library staff provides great n Victoria Park oval, basketball stadium, cricket nets and netball courts – Clunes Fast Facts n Queens Park playground redevelopment – Clunes n Glenlyon Recreation Reserve flood remedial works – n 1,831 pool memberships sold Glenlyon n 6,912 pool visits n Calembeen Park diving tour, concourse, retaining walls n 4,536 passengers travelled on the and other works – Creswick Old Hepburn-Creswick trial bus n Creswick Bowling Club relocation n Sealed road repairs program Libraries n Bridge repair program n Clunes Branch – 634 members, 19,333 loans, n Further drainage repair and upgrade works 15,615 visits n Walking track and footpath repairs n Creswick branch – 1,339 members, 28,952 loans, n Delivery of further community and economic development 20,890 visits projects n Daylesford – 3,002 members, 80,961 loans, 51,948 visits Key Projects Key projects for the year ahead include: Maternal and Child Health n Implementation of priority projects from the Walking and n 170 birth notifications Cycling Strategy n 86% (146) of infants 0-1 month enrolled in Maternal n Developing a plan of action in response to the Review of and Child Health Service from birth notices Library Services n 1225 Maternal and Child Health consultations (Key n Obtaining a better understanding of the needs of children Ages and Stages visits) and families in the Shire with the development of an Early Years Plan Aged and Disability Services n Implementation of new directions in the Home and n Hours of Home and Community Care: Community Care Program - including better planning for n Personal Care - 2,655 diversity and improved assessment and care planning. n Housekeeping - 9,950 Consistent with the principles of positive ageing, this will n Respite - 1,315 see a focus on early intervention and prevention for older n 419 hours of home maintenance provided people, helping them to stay involved in everyday activities n Meals on Wheels - 19,460 meals delivered to maintain or rebuild their confidence and stay active and healthy
28 Hepburn Shire Council Annual report 2010-2011 Achieving ‘Healthy, Safe and Vibrant Communities’ All of the 17 initiatives in the 2009-2013 Council Plan under ‘Healthy, Safe and Vibrant Communities’ have either been completed or commenced. 2010-2011 Initiatives Lyonville Community Plan reviewed and updated - November 2010 ✔ Glenlyon Action Plan completed ✔ Work commenced on developing a Community Plan for Musk Vale/Sailors Falls - to be completed September 2011 ✔ Section four Community Planning Schedule adopted by Council, December 2010 ✔ Priority projects from Community Plans completed: ✔ • Newlyn roundabout works • Yandoit Tennis Court • Lindsay Arts Trail Improvements to Lyonville Community Hall – Community Hall Improvement Program ✔ Funding application submitted for Clunes Community and Interpretative Centre ✔ Council provided HACC services to 491 clients. Hours of service: ✔ • Personal Care 2,655 • Housekeeping 9,950 • Respite 1,315 419 hours of home maintenance provided 19,460 delivered meals – Meals on Wheels Program New Youth Policy adopted by Council, June 2011 ✔ Access and Inclusion Plan - not reviewed ✘ Planning Scheme review report completed ✘ Revised Municipal Emergency Management Plan adopted September 2010 ✔ Public Health Emergency Management Sub Plan adopted June 2011 ✔ Ongoing, regular meetings with members of Victoria Police and specific strategies developed in relation to trespassing at Calembeen Lake tower Commenced Reviewing the Shire’s Local Laws to improve community safety and amenity Commenced Achieving safer roads, safer cycling infrastructure, improved pedestrian precincts and healthier communities by participating in black and grey spot funding ✘ programs to complete at least two major road projects, and through seeking the implementation of more local traffic management plans in conjunction with (Funding not other authorities and our community made available in 2010-2011) Completing a significant tree register and enabling appropriate protection through the Hepburn Planning Scheme Commenced Facilitating the restoration of important heritage buildings. No funding provided for grants or loans. Advocacy and advice only ✔ Introducing a Public Art Policy and incorporating a public acquisition and display policy with a particular focus on encouraging art installations in public open ✘ spaces
Council allocated $38,821 to 35 projects in Round One and Two of its Community Grants program for Community Events, Culture and Arts, Community ✔ Strengthening and Small Equipment
Assistance provided to festivals and events including Chill Out, Daylesford Highland Gathering, Clunes Book Town, Trentham Fun Run, Glenylon Sports Day, ✔ Daylesford Agricultural Show, Creswick Forestry Fiesta, Swiss Italian Festa, Jubilee Lake Family Fishing Day, Trentham Spudfest, New Year’s Eve Gala Terms of Reference for Recreation Advisory Committee adopted and new members appointed in June 2011 ✔
Strategic Indicators for ‘Healthy, Safe and Vibrant Communities’
Performance Measure Target Performance at 30 June 2011 Result Glenlyon Plan developed. Lyonville Council will assist with the Two new Community Plans Plan revised and new Plan written. development of community Target exceeded developed by 30 June 2011 Work commenced on Sailors Falls plans Plan The collation of public submissions to identify trees has been completed. A Completion of a Significant Complete collation of public consultant has been appointed who Tree Register through the submissions to identify trees to is currently writing statements of Target met Hepburn Planning Scheme be assessed by 30 June 2011 significance for the trees that should be protected for the Significant Tree Register During 2010-2011 Council will Council will provide Home Council provided: provide a minimum of: and Community Care 9,950 hours of housekeeping 13,650 hours of housekeeping Target not met Services to all eligible 2,655 hours of personal care 3,400 hours of personal care residents 1,315 hours of respite care 2,750 hours of respite care
Community satisfaction rating of Satisfaction with Council’s 74% for overall performance in health and human services 75% Target exceeded the Health and Human Services remain high area
Annual report 2010-2011 Hepburn Shire Council 29 Turbine at Hepburn Wind
30 Hepburn Shire Council Annual report 2010-2011 Environmental sustainability Section five “We will guide our Shire towards 33 Albert Street, adjacent to Daylesford Library. environmental sustainability” Vehicle Policy – Green Fleet To help achieve Council’s goal of reducing greenhouse To achieve environmental sustainability, we will: emissions, a ‘green fleet’ policy was adopted which resulted in n Demonstrate courageous leadership in responding to the a reduction in fuel consumption of 19%. challenges of climate change n Work collaboratively with the community to address their Recycling needs Council was successful in receiving a $50,000 grant from n Ensure we plan for short and long term economic viability, Sustainability Victoria for the provision of public place recycling environmental conservation, restoration and community well- receptacles in the main streets of Creswick, Clunes and being in all Council decision making, operations and services Hepburn Springs. The dual bin installation in Creswick was completed in 2010-2011. The roll-out in Clunes and Hepburn Highlights Springs will be completed in early 2011-2012. The location of these bins was determined following consultation with the Sustainability Strategy community and traders, and is expected to increase the Shire’s The development of an overarching Sustainability Strategy recycling rates while reducing the amount of litter sent to landfill. was a key priority in 2010-2011, with the Strategy nearing its completion. The aim of the Strategy is to improve the Waste Management Strategy environmental efficiency of Council operations and services over Council established a Waste Resource Management Steering a three year period. Committee to provide input and advice on the development of a Waste Management Strategy. The Committee comprises The draft Strategy has five themes: two Councillors, three community representatives and Council n Creating a culture of Sustainability Leadership within Council officers. The Strategy will be developed during the first half of n Responding to the Challenges of Climate Change 2011-2012. n Using Our Resources Wisely n Enhancing and Restoring our Natural Assets Sustainability Grants n Working with Community, Agencies and Business on Sustainability Issues Four Sustainability grants were distributed in 2010-2011. n Daylesford Football and Netball Club: ‘Four Quarter to tackle Implementation of the Strategy will be undertaken over three Climate Change’. This project involved the installation of stages: nine recycling receptacles at Victoria Park, replacement of Stage 1: Building Internal Capacity all takeaway food containers from the kiosk to compostable Stage 2: Addressing Identified Priorities across the Spectrum crockery, and the purchase of a crockery set for the Club in Stage 3: Planning for the Long Term and Partnering in Major lieu of disposables for events Projects n SHARE: ‘Transition Town Training’. This involved the training of 30 local residents to become community leaders in It is anticipated the final Strategy will be launched in November sustainable living 2011. n Creswick Neighbourhood House: ‘Frog’s Rock!’ This was a biodiversity restoration project for the Growling Grass Frog Internal Sustainability Initiatives n Clunes Neighbourhood House: ‘Geodesic Dome’. This Council adopted a number of practical measures during the involved the development of a geodesic dome as a year to improve sustainability. These included: demonstration site for high volumes of residential food n Converting all halogen lights in the Visitor Information Centre production to LEDs n Utility monitoring of all Council-owned buildings Mineral Water n Green purchasing – Council continues to promote buying In conjunction with the Victorian Mineral Water Committee recycled and environmentally preferred or green products. (VMWC), Council completed a draft Management Plan for the Council’s overall green purchasing during 2010-2011 was Central Springs Reserve. Council also continued to work with 30%. The goal is to increase Council’s green purchasing to the Committee to progress a number of VMWC funded projects 35% in 2011-2012. to protect and enhance these iconic areas.
Community Gardens Earth Ship Demonstration Project Council assisted in the development of two community gardens This project involves the development of a demonstration wall in Daylesford. These were at Rea Lands, 42 Raglan Street and made out of recycled materials to demonstrate alternative
Annual report 2010-2011 Hepburn Shire Council 31 Environmental sustainability housing design and use of materials. The project was facilitated Sustainable Schools Initiative Victoria) sustainability program - a by Council at the Daylesford Transfer Station and developed by five module program that will work on energy, water, waste community members. and biodiversity initiatives. AuSSI is a national partnership of the Australian Government, and provides practical support to The project will be completed during National Recycling Week schools and their communities to learn to live and work more (7-13 November 2011). sustainably.
Koala Connect Project The program will help Smeaton minimise waste, save energy This project involved four municipalities (Pyrenees, Ballarat, and water, promote biodiversity and cut their greenhouse gas Hepburn and Moorabool) and was funded by the State emissions. Council also provided $450 to teachers from Bullarto, Government. The aim of the project was to assist planners Creswick North and Smeaton primary schools to attend a and engineers understand the values of native vegetation and Regional Tool Box Forum for Environmental Change within the Council’s responsibilities and obligations under the Environmental educational system. Protection Biodiversity Conservation Act and the Flora and Fauna Guarantee Act. Sustainability Award The inaugural winner of Council’s Sustainability Award was During 2010-2011, four publications were produced and Trewhella Farm for their excellence in environmental sustainable distributed. practices. The award honours a food producer or winemaker n ‘Before you buy or build’ - a guide to native vegetation and within the Daylesford Macedon Produce area who exhibits a planning commitment to sustainability, and consciously demonstrates n ‘Threatened species of Central Victoria and their habitats’ – a environmental and sustainability applications in their business guide for kids operations. n ‘Native Vegetation and Planning in Central Victoria: an introduction for Council staff’ Disappointments n ‘Meet the locals’ – a guide for native animals Energy Descent Plan Landcare Council is still developing the Energy Descent Plan, with the A total of $24,000 (equally funded by Council and the State target completion date being extended to 30 June 2012. The Government) was provided to 13 local Landcare groups – with planning phase has taken longer than anticipated. each receiving $1,845. Projects included: n Water catchment conservation Carbon Output n Cleanup at the Clunes Creek Council has not reduced carbon output from Council’s operations n Leitches Creek weeding by 5%, with building emissions during 2011-2012 increasing by n Gorse, blackberry and broom infestation management approximately 3%. n Tree planting program-collecting seeds for tree seedlings and distribution Challenges
School Support Flood Recovery Works Council provided funding of $3,000 to Smeaton Primary School The sheer volume of flood recovery works will continue to present to participate in the Resource Smart AuSSI Vic (Australian challenges to Council. In particular, the amount of work required
Annual Residential Waste Recycling as a Proportion of Landfill as a Proportion of Generation Per Capita (kg) Annual Residential Waste Annual Residential Waste 500 50% 100% 490 459 39.5% 38% 363 37% 37.8% 326 62.2% 59% 58% 55.5% 250 25% 50%
0% 0% 0% 2007/08 2008/09 2009/10 2010/11 2007/08 2008/09 2009/10 2010/11 2007/08 2008/09 2009/10 2010/11
32 Hepburn Shire Council Annual report 2010-2011 to quantify and produce tender documents is extensive, and The Year Ahead there is a shortage of available contractors due to the extent of A range of key projects and initiatives will commence or continue flood recovery works across other parts of Victoria and Australia. in 2011-2012. These include: n Development of the Energy Descent Action Plan Climate Communities Program n Finalisation of the Waste Management Strategy The Climate Communities Program was abolished during the n Eco leaders (internal) - developing a group of internal staff year, and this has resulted in the removal of climate change dedicated to integrating sustainability across the wider funding sources for community groups and human resources for organisation
local councils. Alternative means of funding these programs will n Sustainability workshops - offering workshops to the Section five need to be explored. community to assist in reducing their environmental impact and increase sustainable behaviours Climate Change n Implementing retrofits to Council’ top four energy-emitting The extreme weather events caused exponential growth of flora buildings - including exotic species. This will continue to pose problems n Launch of the Sustainability Strategy as contractors have been unable to perform weed management n Continuation of Community Sustainability and Landcare works. Additionally, vegetation growth will flourish in Spring Grants. which will exacerbate fire risks for Summer.
Achieving ‘Environmental Sustainability’ Of the 17 ‘Environmental Sustainability’ initiatives in the 2009-2013 Council Plan, 13 have either been completed or commenced to date. 2010-2011 Initiatives Becoming a carbon negative organisation by June 2013 and a carbon negative community by 2025 Ongoing Seeking partnership opportunities in Federal and State funded sustainability programs to continue reducing our carbon emissions ✔ Reviewing our fleet and motor vehicle operations to reduce fuel consumption and greenhouse emissions ✔ Achieving a significant and noticeable reduction in vehicular traffic and motor transport through promotion and development of cycling and walking infrastructure in our five main communities Ongoing Installing energy efficient fittings and appliances in Council buildings ✔ Providing grants to community organisations pursuing environmental sustainability ✔ Enacting policies which encourage environmentally sustainable development, particularly measures relating to energy initiatives and transport ✔ Investigate strategies to provide incentives for environmentally sustainable property improvements ✔ Implementing Council’s Sustainable Water Use Plan including drought proofing of iconic open spaces like the Wombat Hill Botanic Gardens and Queens Park x in Clunes Establish an effective dialogue with Government departments and local water authorities to protect our water resources from over allocation x Ensuring our community can capitalise on and enjoy the benefits of our iconic mineral water resources for generations to come by proactively advocating for x the responsible management of the resource and seeking representation on the Victorian Mineral Water Committee Protecting water quality in the Shire by advocating for the use of dry treatment or otherwise proven waste water technology x Including new planning provisions in the Hepburn Planning Scheme to improve biodiversity and habitat preservation Ongoing Pursuing appropriate revegetation and integrated weed management on roadside reserves in partnership with abutting land owners, our community and ✔ other managers Developing Management Plans for Council owned and/or controlled natural environments, such as Jubilee Lake, Lake Daylesford, Calembeen Park, Bath ✔ Street Reserve and the Hepburn Mineral Springs Reserve Reducing the waste taken to landfill by encouraging waste minimization practices and investigating options for the extension of the kerbside collection service and community recycling drop-offs Ongoing Working with local organizations and service clubs to improve the delivery of surplus yet appropriate and useful goods to those less fortunate Ongoing
Strategic Indicators for ‘Environmental Sustainability’
Performance Target Performance at 30 Result Measure June 2011
Increase the level of recyclable collection Process in excess of 1,100 processed at the Daylesford 1, 857 tonnes recycled in 2010-11 Target exceeded tonnes of recyclable collection Municipal Recycling Facility (MRF) Reduce the carbon output from Council’s operations, Carbon output increased Carbon output reduced by 5% verified through utility approximately 3% Target not met tracking
Council will implement Council is still developing the Plan, priorities indentified in the Completion by 30 June 2011 with the target completion date being Target not met Energy Descent Plan extended to 30 June 2012
Annual report 2010-2011 Hepburn Shire Council 33 Our people
As at 30 June 2011, there was 164 staff employed in a range of permanent full-time, part-time and casual positions Staff by - equating to 122.4 equivalent full-time staff (EFT). Of the Employment Status
122.4 EFTs, 15 were vacant positions leaving an employed Casual 11 EFT number of 107.4 at 30 June 2011. Staff by Gender Council also employed another 3 employees (2.06 EFTs) in Part Time funded positions relating to Transport Connections, Bushfire 68 Full Time 85 Male Recovery and FreeZa events. 43%
Of the 122.4 EFT staff, 89 are involved in external service Female delivery. This includes functions such as road maintenance, 57% parks and gardens, aged and disability services, transport connections, youth development work, bushfire and flood recovery, community planning, recreation activities, planning, building and health inspections, management of Visitor Information Centers, compliance (including local laws), and between departments, overall the EFT number has school crossing supervisors, waste management and road remained constant over the last few years. Interestingly, there engineers. has been a 3% increase in the number of part-time staff - with 41% of the workforce now in part-time employment, up The pie chart below shows a break-down of staff from 38% in 2009-2010. by service delivery area. Training and Development Executive Services 3% Employees participated in a range of training and Community Development 7% development opportunities across a number of core HACC 19% business areas. Some of the training and development Sustainability 2% included: Economic Development &Tourism 3% n Contracts & Procurement Corporate Services 18% n Community Engagement Engineering 6% n Anti-Bullying & Harassment Maintenance 19% n Certificates and Traineeships in Business Administration Parks & Gardens 9% n Building & Civil Construction Planning, building & health 14% A number of staff also participated in leadership and management training such as LGPro Emerging Leaders and Department Total EFT the LGPro Ignite Programs. Executive Services 3.6 (3%) Community Development 6.74 (7%) Enterprise Agreement HACC 23.6 (19%) Council’s Enterprise Agreement (No.6) 2010 came into effect Sustainability 2 (2%) on 18 November 2010. The Agreement remains in place for Economic Development & Tourism 3.5 (3%) three years and aims to provide fair and favourable working Corporate Services 23 (18%) conditions for our employees. The Enterprise Agreement Engineering 7 (6%) Maintenance 24 (19%) Negotiating Committee consisted of employee and Parks & Gardens 11 (9%) management representatives from Hepburn Shire Council, Planning, Building & Health 18 (14%) the Australian Services Union (ASU) and the Association TOTAL 122.4 of Professional Engineers Scientists Managers Australia (APESMA). This year, some of our staff also took the opportunity to move into temporary secondment positions in the Creswick Employee Code of Conduct Flood Recovery Office to assist with the Flood Recovery The Employee Code of Conduct was adopted in June 2010. efforts. To promote understanding of the Code, the CEO hosted a series of workshops for employees in early 2010-2011 to Although there have been some shifts in EFT numbers within discuss topics such as conflicts of interest, ethical decision making and appropriate workplace behaviours.
34 Hepburn Shire Council Annual report 2010-2011 Values and Behaviours Volunteer Service Awards Following extensive consultation with all employees, Council recognised six community members for achieving Council formally adopted a set of organisational Values and 10 years’ volunteer service at our Visitor Information Centres.
Behaviours in November 2010. In addition to defining the Section six Values of Accountability, Respect, Excellence, Trust and Fun, Daylesford Regional Visitor Information Centre: employees also identified specific behaviours to describe n Claire Stephens how each Value is represented in our day to day interactions. n Brian Hoffmeyer n Carol Hoffmeyer Occupational Health and Safety (OH&S) Council is committed to providing a safe and healthy Creswick Visitor Information Centre: workplace for all employees, Councillors, contractors, n Barry Yates customers, volunteers n Val Yates Reported Incidents and Injuries and visitors. Through n Mary Anglin 50 42 39 proactive inspections, 37 Committee meetings 34 and engagement with Health and Safety Representatives, Council aims to 25 continually improve its processes and controls to reduce the risk of injury or health issues.
0 For the year ended 2007/08 2008/09 2009/10 2010/11 30 June 2011, a total of 39 incidents were reported. Of these incidents, 13 were near misses, six required external medical treatment and four resulted in employees being off work for at least a shift (Lost Time Injuries).
Service Milestones Service milestones are recognised on an annual basis at a staff function. Certificates recognising service milestones Gerald Daly, Workshop Team Leader are presented with a small gift of appreciation. Hepburn Shire Council values the service provided by its long-serving employees and the wealth of knowledge they bring to Council. 30 Years: n Kevin Clohesy, Fleet and Technical Officer 20 Years: n Lina Martin, Home Carer 15 Years: n Eric Wright, Coordinator Compliance n John Scanlon, Labourer/Plant Operator n Lesley Cebula, Records Officer n Jennifer Cowan, Rates Officer 10 Years: n John Liversidge, Hall Keeper n Gordon Anderson, Mechanical Assistant/Labourer n Gerard Van Oostveen, Labourer/Plant Operator n Dale Callahan, School Crossing Supervisor n Rebecca Pedretti, Film Liaison Officer n Dianne Struhs, Property Officer n Dianne Van Der Veer, Administration Support Officer n Rachael Cooper, PAG Assistant n Kathryn Attwood, Financial Accountant David Gyford, Roads Inspector and Andy Coker, Team Leader Outdoor Maintenance
Annual report 2010-2011 Hepburn Shire Council 35 Michael Taleski, Plant Operator 36 Hepburn Shire Council Annual report 2010-2011 36 Hepburn Shire Council Annual report 2010-2011 Corporate Governance Section seven
The Plan also contains: Council governs for and on behalf of the Hepburn Shire n A range of initiatives and strategies through which we will community. Good governance is accountable, transparent, deliver our commitments responsive, effective and efficient, equitable and inclusive n Ways to measure our success or otherwise and law abiding. Council gains its role, powers and functions n A Strategic Resource Plan which identifies the primarily from the Local Government Act 1989 which sets financial and other resources necessary for the Plan’s out a charter prescribing the purpose of Councils in Victoria. implementation
Our Role Decision Making Under the Act, the main objective of Council is to endeavour Council has an Ordinary Council Meeting once a month to achieve the best outcomes for the local community having which is held at different locations throughout the Shire to regard to the long term and cumulative effects of decisions. ensure the community has the ability to attend if they wish. Councillors are also briefed by officers on relevant issues Under the Act, the role of Council includes: during informal weekly sessions. n Acting as a representative government by taking into account the diverse needs of the local community in Attendance at Council Meetings decision making 1 July 2010 – 30 June 2011 n Providing leadership by establishing strategic objectives and monitoring their achievement ORDINARY MEETINGS SPECIAL MEETINGS n Maintaining the viability of Council by ensuring that (12 Held) (4 Held) Cr Barrell 10 4 resources are managed in a responsible and accountable Cr Booth 12 4 manner Cr Hayes (Resigned 23 May 2011) 10 4 n Advocating the interests of the local community to other Cr Henderson 12 4 Cr Klein 12 4 communities and governments Cr May 12 4 n Acting as a responsible partner in government by taking Cr McClenaghan 12 4 into account the needs of other communities n Fostering community cohesion and encouraging active Committees of Council participation in civic life Council could not operate effectively without the assistance of the large number of volunteers represented on Council’s Local government is accountable to its community, so Special Committees (Section 86 Committees) and Advisory its operations must be open and transparent. Proper Committees. process with good governance is an essential part of the way Hepburn Shire Council operates, as it gives residents the confidence to know that their rates are spent wisely and Council administration carries out decisions made by Councillors appropriately.
Council Plan Framework The Council Plan is the key strategic document guiding the direction of the Council for its elected term. The Hepburn Shire Council Plan 2009-2013 was developed in consultation with residents and stakeholders. This Annual Report reviews performance against the 2009-2013 Council Plan.
The Council Plan makes four fundamental commitments: n We will deliver good governance to the Hepburn Shire n We will help improve economic prosperity n We will assist our residents improve the health, safety and vibrancy of our communities n We will guide our Shire towards environmental sustainability
Annual report 2010-2011 Hepburn Shire Council 37 Corporate Governance
Councillor Committee Representation Internal Audit Reviews Conducted in 2010-2011 Organisation Councillor n Project Job Costing Representation n Workplace and Succession Planning External Bodies Committee of Management for DSE (26 Committees) All Councillors represent n Asset and Property Management their electorate at these meetings when required External Audit Reviews Conducted in 2010-2011 Municipal Association of Victoria Cr Bill McClenaghan n Victorian Auditor General’s Office – Annual Financial Audit Victorian Local Government Association Cr Sebastian Klein Highlands Regional Waste Management Group Cr Bill McClenaghan and Mid-year Review (Director) n Department of Planning and Community Development Central Highlands Regional Library Corporation Cr Rod May Inspectorate - Audit of Compliance with the Local Central Highlands Agribusiness Forum Cr Rod May Government Act Central Victorian Greenhouse Alliance Cr Rod May Local Government Sustainability Network (MAV) Cr Rod May n JLT Municipal Asset Protection Plan - Property Risk Audit Timber Town Cr McClenaghan n JLT Municipal Asset Protection Plan – Commercial Crime Daylesford Macedon Ranges Tourism Board Cr Jon Barrell and Fraud Risk Audit Loddon Highlands WSPA Consultative Committee Cr Rod May Section 86 Committees n Civic Mutual Plus – Public Liability Risk Progress Review Lee Medlyn Home of Bottles Vacant n Victorian Auditor General’s Office – Business Planning Council Advisory Committees for Major Capital Works and Recurrent Services in Local Agricultural Advisory Cr Sebastian Klein Audit and Risk Advisory Cr Janine Booth and Government Vacant ARC Advisory Committee Cr Jon Barrell Local Laws Bobonaro Friendship Group Advisory Cr Sebastian Klein The Local Government Act gives Council the power to make Creswick Development Committee Cr Janine Booth and Cr Don Henderson local laws. Culture and Arts Advisory Cr Rod May Hepburn Shire Council has two local laws: Environmental and Sustainability Cr Sebastian Klein, Cr n Local Law No 1 – Meeting Procedure and Common Seal Don Henderson and Cr n General Local Law No 2 – Community Amenity and Rod May Heritage Advisory Cr Don Henderson Municipal Places IWD Organising Committee Cr Don Henderson Mineral Springs Reserve Advisory Cr Rod May General Local Law No 2 covers issues such as: Municipal Emergency Management Planning Cr Bill McClenaghan Municipal Fire Prevention Cr Bill McClenaghan n Public Street and Road Usage Recreation Advisory Cr Sebastian Klein n Alcohol consumption Wombat Hill Botanic Gardens Cr Jon Barrell n Burning of offensive material n Keeping animals
Audit and Risk Advisory Committee Local Law Date Operational The Audit and Risk Advisory Committee is an independent Local Law No – 1 Meeting Procedure and Common Seal 22 April 2009 advisory committee to Council. It is comprised of three General Local Law No – 2 Community Amenity and 17 November 2009 Municipal Places external independent members including Mr Robert Taylor (Chair), Mr Les Eastcott and Mr Peter Barton and two A permit may be required to carry out various activities Councillors – Cr Janine Booth and a vacant position. under General Local Law No 2, such as holding a street stall. Copies of these documents are available on Council’s The Committee meets four times during the year in website September, November, February and May. At these meetings, the Committee considered the following agenda items: n Review of Risks n Summary of monthly finance reports n Mid-year budget review n Annual Budget review n Internal audit reports issued n External audit reports and management letters n Review of compliance obligations n Progress on internal and external audit recommendations n Policy and procedure review
38 Hepburn Shire Council Annual report 2010-2011 Policies, Strategies and Plans Council’s commitment to the Act is outlined in our The following policies, strategies and key plans were Whistleblowers Procedures which can be found on Council’s reviewed and/or adopted by Council during 2010-2011. website. One disclosure was received in 2010-2011. Document Date Adopted
Community Engagement Framework 17 August 2010 Freedom of Information Section seven Road Asset Management Plan 17 August 2010 The Freedom of Information Act 1982 provides all residents Bridges Asset Management Plan 17 August 2010 and ratepayers a legally enforceable right to obtain access Municipal Emergency Management Plan 21 September 2010 Heatwave Strategy 16 November 2010 to a document in accordance with this Act. Freedom Code Red Fire Danger Procedure 23 November 2010 of Information requests must be made in writing and be Hepburn Economic Development Strategy 21 December 2010 accompanied by an application fee. International Women’s Day and Women’s Honour Roll 15 March 2011 Organising Committee Operating Guidelines Hardship Policy 15 March 2011 There were two applications under the Freedom of Revenue Policy 15 March 2011 Information Act 1982 during 2010-2011. Rating Strategy 19 April 2011 Privacy Policy 19 April 2011 Procurement Policy 17 May 2011 Investment Policy 17 May 2011 Recreation Development Policy 17 May 2011 Complaints Handling Policy 28 June 2011 Youth Policy 28 June 2011 Events Policy 28 June 2011 Risk Management Policy 28 June 2011 Risk Management Framework 28 June 2011 Internal Audit Charter 28 June 2011 Borrowings Policy 28 June 2011
Information Privacy Act 2000 Council has adopted policies relating to information privacy and health records that meet the requirements of the Information Privacy Act 2000 and the Health Records Act 2001.
Whistleblowers Protection Act 2001 The Act is designed to encourage and facilitate the disclosure of information about improper conduct by Council officers or Councillors. The Act provides a framework for the investigation and correction of any improper conduct reported. It also provides protection for informants. The key objectives of the Act are to: n Promote a culture in which people feel safe to make disclosures n Protect these people from recrimination n Provide a clear process for investigating allegations n Ensure that investigative matters are dealt with properly Victorian Government Indicators Indicator Description 2010-2011 2009-2010 2008-2009 Overall performance Community Satisfaction Result for overall performance 52% 56% 58% Advocacy Community Satisfaction Result for Council’s advocacy and 57% 57% 61% community representation on key local issues Engagement Community Satisfaction Result for Council’s engagement in 51% 54% 54% decision making on key local issues All rates Average rates and charges per assessment $1,296 $1,218 $1,110 Residential rates Average rates and charges per residential assessment $1,320 $1,113 $1,010 Operating costs Average operating expenditure per assessment $2,642 $2,041 $1,970 Capital expenditure Average capital expenditure per assessment $832 $639 $473 Infrastructure Ratio of current spending on capital renewal of existing 133% 94% 68% infrastructure assets which returns the service potential or the life to its original Infrastructure Ratio of current spending on capital renewal of existing 119% 96% 77% infrastructure assets which returns the service potential or the life to its original plus capital spending on maintenance Debt Average liabilities per assessment $882 $883 $748 Operating result Operating result per assessment $771 $962 $1,260
Annual report 2010-2011 Hepburn Shire Council 39 Corporate Governance Statutory Information National Competition Policy Council is required to maintain a public register of various Compliance: 2010-2011 pieces of information in accordance with the Local Government Regulations. This information is stored in the Certification by the Chief Executive Officer public register. The public register is available for inspection Hepburn Shire Council has complied with the requirements at the Daylesford Town Hall Office at 76 Vincent Street, of the National Competition Policy (NCP) for the period Daylesford. 1 July 2010 to 30 June 2011, in accordance with the requirements outlined in National Competition Policy and The register contains the following information as prescribed Local Government (Revised 2011) as set out below: by the Regulations. I certify that:
Documents to be made available for public inspection: A. Trade Practices Compliance Compliant (a) Details of current allowances fixed for the Mayor, Lord Mayor (if any) and State whether the Council is compliant Councillors under section 74 or 74A of the Act. or non-compliant. If non-compliant, (b) The total annual remuneration for all senior officers in respect of the current justify or cite actions to redress. financial year and the previous financial year, set out in a list that states— B. Local Laws Compliance Compliant (i) ranges of remuneration of senior officers, where the difference between State whether the Council is compliant the lower amount and the higher amount in each range must not exceed $10 000; and or non-compliant. List all local laws (ii) the number of senior officers whose total annual remuneration falls made or remade during 2010- within the ranges referred to in subparagraph (i). 11 which impose a restriction on competition: (c) Details of overseas or interstate travel (with the exception of interstate travel by land for less than 3 days) undertaken in an official capacity by C. Competitive Neutrality Compliance Compliant Councillors or any member of Council staff in the previous 12 months, State whether the Council is compliant including the names of the Councillors or members of Council staff and the or non-compliant for all significant date, destination, purpose and total cost to the Council of the overseas or businesses. List any significant interstate travel, including accommodation costs. businesses that are non-compliant: (d) Names of Council officers who were required to submit a return of interest during the financial year and the dates the returns were submitted. (e) Names of Councillors who submitted returns of interest during the financial year and the dates the returns were submitted. a) this statement has been prepared in accordance with the (f) Agendas for and minutes of ordinary and special meetings held in the 2010-11 National Competition Policy reporting guidelines; previous 12 months kept under section 93 of the Act except if the minutes relate to parts of meetings which have been closed to members of the and public under section 89 of the Act. (g) A list of all special committees established by Council and the purpose for b) this statement presents fairly the Council’s implementation which each committee was established. of the National Competition Policy. (h) A list of all special committees established by the Council which were abolished or ceased to function during the financial year. (i) Minutes of meetings of special committees established under section 86 of Signed: the Act and held in the previous 12 months except if the minutes relate to parts of meetings which have been closed to members of the public under section 89 of the Act. (j) A register of delegations kept under sections 87 and 98 of the Act, including the dates on which the last reviews under sections 86 (6) and 98 (6) of the Act took place. Kaylene Conrick (k) Submissions received in accordance with section 223 of the Act during the Chief Executive Officer previous 12 months. 30 June 2011 (l) Agreements to establish regional libraries under section 196 of the Act.
(m) Details of all property, finance and operating leases involving land, buildings, plant, computer equipment or vehicles entered into by the Council as lessor or lessee, including the name of the other party to the lease and the terms and the value of the lease. (n) A register of authorised officers appointed under section 224 of the Act.
(o) A list of donations and grants made by the Council during the financial year, including the names of persons or bodies which have received a donation or grant and the amount of each donation or grant. (p) A list of the names of the organisations of which the Council was a member during the financial year and details of all membership fees and other amounts and services provided during that year to each organisation by the Council. (q) A list of contracts valued at $150 000 (or such higher amount as is fixed from time to time under section 186 (1) of the Act) or more— (i) which the Council entered into during the financial year without first engaging in a competitive process; and (ii) which are not contracts referred to in section 186 (5) or (5A) of the Act.
40 Hepburn Shire Council Annual report 2010-2011 Financial sustainability Section eight Financial Performance Expenses n Surplus of $2.17 million Council expenditure was $27.5 million in 2010-2011. n Adjusted surplus of $3.5 million (excluding flood-related This is higher than the budgeted total of $21.8 million, items) but comparable to flood adjusted total expenditure of n $25.6 million revenue with 53% coming from rates and $22.1 million. Also included in expenses is $315,000 for charges (excluding flood-related revenue) superannuation to cover the top-up of Council’s share of n $22.2 million expenditure with 42% attributable to labour the Defined Benefit Superannuation Fund, payable in early services and 30% due to materials and services (excluding 2011-12. flood-related expenditure) n $169.9 million in capital assets, providing community Council’s expenses comprise 3 main categories: employee facilities, roads, bridges and other infrastructure and labour costs (42%), materials and services (30%) and n $7.0 million (excluding flood reimbursements received in depreciation (21%). advance) in cash, an increase on last year n $3.5 million in loans and borrowings, a decrease on last 2010-11 Categories of expenditure ($ Thousands)
year Other expenses Depreciation $1,140 and amortisation Employee Result $4,742 benefits Council achieved a surplus of $2.17 million for 2010-2011. $9,384 However, this figure was significantly impacted by flood recovery expenditure and associated reimbursements and the devaluation of Infrastructure Assets damaged by the floods. The adjusted result (exclusive of these flood items) was $3.5 million.
This surplus compares favourably to the budgeted result $215 Finance of $1.4 million due to $2.2 million being received in costs $12,055 unanticipated grant funding. For example, a portion of the Material and services Victorian Grants Commission and Local Roads Grant for the 2011-2012 year was prepaid in June 2011 ($985,000). Financial Strength Council’s major assets comprise Cash, Property, Maintaining a positive surplus is an imperative component of Infrastructure, Plant and Equipment. Council’s Financial Sustainability Strategy. Cash Revenue Cash has increased $4.6 million as a result of $4.8 million in Total Revenue for 2010-2011 was $35.6 Million. This included flood reimbursements – which was received from the State $10 million in flood related reimbursements and grants, resulting Government in advance of works to be completed in 2011- in an adjusted revenue figure of $25.6 million. This result is 2012. greater than the budget of $23.1 million as a result of an additional $2.2 million in grant funds received. The working capital ratio, which represents Council’s current assets as a percentage of current liabilities, is a way to Excluding the flood funds, Council’s two major revenue assess Council’s ability to meet current commitments. The sources are Rates and Charges at 53% of revenue and Victorian Auditor General’s Office (VAGO) also uses this Recurrent Grants at 23% of revenue - which highlights ratio to ascertain Council’s financial sustainability and sets a Council’s reliance on ratepayer funding to deliver services to financially prudent target of 150%. the community. At 30 June 2011, Council’s working capital ratio was 263%. 2010-2011 Sources of revenue ($ Thousands) When the prepaid flood reimbursement funds are excluded Statuory fees from the year-end cash balance, this ratio is 178%. and fines Grants non recurrent $314 $3,274 Reimbursment $299 Contributions If the following factors were taken into account, the ratio $9,839 would be similar to the budgeted figure of 106%: $5,973 Grants recurrent n $2.2 million in unanticipated grant funding was received during the year, with the majority of this remaining in unspent Rates and cash at year end. Of particular note is the prepayment of the charges $1,379 $985 $13,507 Victorian Grant Commission and Local Roads Grant for the User Fees Other income 2011-2012 year in June 2011 ($985,000) Annual report 2010-2011 Hepburn Shire Council 41 $13,507 n The budgeted capital works and special projects program for the year was $12 million. However, $4 million of these Property, Infrastructure Plant works were not completed at year end, resulting in these and Equipment ($ Millions) funds remaining in cash at year end to be spent in 2011- 2012 172.17 180 162.95 169.91 150.16 Working Capital Ratios (%) 160 139.64 140 120 300 263 100 250 80 197 183 60 200 150 40 150 111 20 0 100 2006/07 2007/08 2008/09 2009/10 2010/11 50
0 Of the $8.7 million spent during 2010-2011, 73% was 2006/07 2007/08 2008/09 2009/10 2010/11 spent on the renewal of assets. Renewal of assets as opposed to building new assets or upgrading assets is an important focus of Council as it works towards reducing the Because of Council’s low cash base, the working capital infrastructure gap. ratio has fluctuated over the years as a result of the two factors identified above. Liabilities Council’s liabilities comprise predominately loans, amounts VAGO advises that a ratio of 106% as budgeted identifies a owed to suppliers and amounts owed to employees for leave “need for caution with cash flow, as issues could arise with entitlements. meeting obligations as they fall due”. In accordance with Council’s 10 Year Financial Plan which was reviewed during Council’s borrowings remained fairly consistent, with a the year, Council needs to gradually increase this underlying balance at year-end of $3.46 million. Council borrowed ratio to eliminate any future cash flow problems. $380,000 during the year. Of this amount, $100,000 funded the final contribution to the Doug Lindsay Recreation Capital Works Reserve Project and $280,000 will be invested to fund the Council’s Property, Infrastructure, Plant and Equipment have construction of new units at Cameron Court, Clunes. decreased by $2.3 million to $169.9 million at year end. Borrowing is seen by Council as a useful mechanism for Council’s Capital Works Program was $8.7 million compared spreading the cost of an asset over the timeframe that the to a budget of $11.3 million. Of significance was the works asset provides services to the community, therefore ensuring on the Doug Lindsay Recreation Reserve in Creswick to a large extent that the ratepayers who utilise or receive ($3 million) and Council’s Roads, Drainage, Footpath and a service from the asset pay for it. This also eliminates the Bridges Program of $3.2 million. The remaining $2.6 million need for a significant rate rise in a given year to raise funds in works will be added to the 2011-2012 Capital Works for a project. program. Balance of Borrowings ($ Millions) However, as a result of the flood events, significant damage to Council’s Infrastructure Assets occurred. $5.9 4 3.61 million in recovery works are still required to repair Council 3.49 assets to their pre-flood condition. Consequently, these 3.46 3 assets have been devalued by $5.9 million, resulting in an overall decrease in total Property, Infrastructure, Plant and 2.53 Equipment at 30 June. 2 1.74
1
0 2006/07 2007/08 2008/09 2009/10 2010/11
42 Hepburn Shire Council Annual report 2010-2011 Detailed information is provided in Council’s Financial than 1:1 indicate that spending on existing assets is Statements which are available on Council’s website. greater than the depreciation rate. This calculation is similar to the one that engineers use to calculate the Financial Sustainability “infrastructure gap”.
VAGO defines financial sustainability as “the capacity to Section eight meet current and future expenditure as it falls due. To VAGO also uses the working capital ratio to measure absorb foreseeable changes and risks materialising, without financial sustainability. Comparative rates for each of the significantly changing revenue and expenditure policies.” above indicators over the last five years are as follows.
VAGO is able to gain insight into Hepburn Shire’s financial 2006-07 2007-08 2008-09 2009-10 2010-11 sustainability by analysing the following indicators over a five- Underlying result year period. (%) 0.87% -1.90% 14.60% 9.83% 5.49% n The underlying result ratio measures whether Council Indebtedness (%) 18.20% 23.68% 28.60% 25.72% 14.89% generates enough revenue to cover operating costs Self-financing (%) 13.60% 27.88% 31.12% 33.59% 36.66% (including the cost of replacing assets reflected in Capital replacement (%) 1.00 1.49 1.31 1.43 1.78% depreciation expense). The larger the percentage, the Renewal gap (%) 0.75 0.81 0.68 1.06 1.43% stronger the result n The indebtedness ratio determines if Council is overly reliant on debt to fund capital programs. The higher the All the indicators for 2010-2011 suggest that Hepburn is percentage, the less able to cover non-current liabilities in the low risk category and trends suggest that Council from the revenues they generate themselves is decreasing reliance on debt and becoming more “self n The self-financing ratio measures the ability to replace financing”. assets using cash generated by their operations. The higher the percentage, the more effectively this can be Further, the increase in the capital replacement and renewal done gap ratios demonstrate that Council has now recognised n The capital replacement ratio determines if Council that if sufficient funds are not allocated to asset renewal then has been replacing assets at a rate consistent with Council’s investment in those assets will reduce, along with their consumption. Ratios higher than 1:1 indicate that the capacity to deliver services to the community. spending is faster than the depreciating rate n The renewal gap measures whether the rate of spending However, the underlying working capital ratio suggests on existing assets through renewing, restoring, and Council is subject to medium risk in relation to its ability to replacing existing assets with depreciation. Ratios higher meet short term debts.
Financial Reporting Section nine All statements associated with Council’s financial reporting requirements are available separately on our website at www.hepburnshire.com.au and can either be reviewed online or downloaded as a separate document.
The Financial Reports include: n Comprehensive Income Statement n Balance Sheet n Cash Flow Statement n Certification of the Financial Report n Performance Statement
Acknowledgements Design: The Mojo Box, Wheatsheaf Photography: Council appreciates the Shire images photographed by our valued staff member, Dale Callahan
Annual report 2010-2011 Hepburn Shire Council 43 Council Office Locations
Daylesford: 76 Vincent Street Phone: (03) 5348 2306 Hours: 8.30am – 5.00pm
Corner Duke and Albert Streets Phone: (03) 5348 1577 Hours: 8.30am – 5.00pm
Creswick: 68 Albert Street Phone: (03) 5345 8399 Hours: 8.30am – 5.00pm
Postal Address: PO Box 21, Daylesford Victoria 3460 Fax: (03) 5348 2306 Email: [email protected] Web: www.hepburnshire.com.au