Moreland City Council

Annual Report 2014 – 2015

Out for a walk, Gowanbrae GREG

I get a lot of comments about the beard. The most common question is whether or not I’m Santa. I haven’t shaved in 36 years, but I brush the beard every day. Moreland City Council Annual Report 2014–2015

WELCOME

Moreland City Council is committed to transparent reporting and accountability to the community. Our Annual Report 2014–2015 is the primary way we communicate to our community about our operations and performance for the financial year.

Our Council Plan 2013–2017 is the We also welcome your feedback on Moreland language link guiding document for this Annual this Annual Report. You can contact Report. The Council Plan describes us on (03) 9240 1111, email us at our strategic objectives in four focus [email protected] or write 9280 1910 areas and the key initiatives to be to us at Locked Bag 10, Moreland, 9280 1911 implemented to achieve them. Victoria 3058. The Annual Report provides 9280 1912 an update on the highlights, achievements originating from this 9280 1913 plan and addresses the challenges Citizens Service Centres 9280 1914 experienced throughout the year. Open from 8.30 am to 5 pm 9280 1915 If you would like to view or order »» Moreland Civic Centre a copy of the Annual Report or 90 Bell Street, 9280 1918 the Council Plan, you can visit Coburg, Victoria 3058 our Citizens Service Centres or contact us (03) 9240 1111. You »» Brunswick Citizens 9280 0750 can also view these documents Service Centre at any of our libraries or on our 233 Sydney Road, 9280 0751 website moreland.vic.gov.au. Brunswick, Victoria 3056

»» Glenroy Citizens All other languages including Service Centre 796N Pascoe Vale Road, Polski Glenroy, Victoria 3046 Croatian 9280 1919 Tagalog Indonesia

Sydney Road, Coburg CONTENTS ANNUAL REPORT 9 2014 – 2015

10 44 INTRODUCTION OUR PERFORMANCE

Mayor’s message / 10 Council Plan 2013–2017 / 44 Chief Executive Officer’s report / 12 Strategic Planning Framework / 45 Description of our municipality / 17 Council Plan Performance Monitor / 46 Performance review / 52 Performance statement / 63 20 Certification of the THE YEAR IN REVIEW performance statement / 71 Independent Auditor’s report A year in the life of Moreland / 20 for performance statement / 72 Financial overview / 26 Victorian Government Performance Indicators / 76 Service delivery / 28 Governance and Awards and citations / 29 management checklist / 82 Community satisfaction / 29 86 GOVERNANCE 32 AND MANAGEMENT OUR COUNCIL Council meetings / 86 Councillors / 33 Major committees / 87 Councillor expenses / 87 Councillor code of conduct / 87 36 Statutory information / 90 OUR PEOPLE 96 Corporate structure / 37 FINANCIAL REPORT Council staff / 38

Occupational health, A plain English guide safety and risk / 40 to the financial report / 96 Financial report / 99 Independent Auditor’s report for financial report / 152 Certification of financial statements / 154 INTRODUCTION 10 Moreland City Council

MAYOR’S MESSAGE

We hope that you’ll agree that the document that you hold in your hands is the culmination of an ambitious year of hard work and achievement.

The City of Moreland continues to be Moreland also became an even a fierce advocate for the issues that better place to get out and get active matter to our community. In the last in 2014–2015, with the opening OUR PEOPLE financial year we were successful in of the $6.4 million CB Smith Sport leading the charge against the East and Education Facility in Fawkner CONTINUE TO BE West Link, our long-running campaign and the $300,000 Gowanbrae OUR GREATEST ASSET, for noise walls in Glenroy resulted in Multipurpose Courts. a $10 million commitment from the AND I AM PROUD TO Events like the Coburg Carnivale, state government, and we are looking Sydney Road Street Party and LEAD A COUNCIL THAT forward to seeing grade separations Brunswick Music Festival, Coburg at priority level crossings at Bell Street, PLACES A PRIORITY Night Market and Carols by the Moreland Road and Glenroy Road. Lake, Glenroy Festival and Fawkner ON INVESTING IN We are working to deliver an even Fiesta continue to draw visitors to YOUR WELLBEING, safer city in which to live, work our community and celebrate all and play, with brighter, more energy- that is great about Moreland. DEVELOPMENT, efficient LED lighting along the Upfield Planning and development ENJOYMENT AND shared path and the Sydney Road continues to be an area of concern corridor, illuminated taxi ranks on RECOGNITION. for many of our residents. This Sydney Road, and nine new CCTV year we successfully introduced cameras. But a true highlight of 2014– the Municipal Strategic Statement 2015 was building the award-winning and our Residential Zones, which Wilson Avenue Public Park, a unique provide greater certainty around safety initiative and Brunswick’s first heights and amenity in our residential new park in 15 years. areas. We also made great strides towards implementing structure Cr Meghan Hopper

plans in Coburg and Brunswick, lead a Council that places a priority heritage controls on Lygon Street, on investing in your wellbeing, environmentally sustainable MORELAND development, enjoyment and development practices, and recognition – not just this financial better apartment design. CONTINUES TO year, but always. Moreland continues to flourish as FLOURISH AS I hope that you feel equally as One Community, Proudly Diverse. ONE COMMUNITY, proud of the community that We built on that diversity as we hosted we are building, together. citizenship ceremonies where over 700 PROUDLY DIVERSE. people chose to make Moreland their new home. We proudly acknowledge the contribution of migrants and and yes, roads, rates and rubbish. refugees to our municipality, with Speaking of libraries, I hope you’ve around 40 per cent of our population had the opportunity to make the Cr Meghan Hopper speaking a language other than most of the new and improved English at home and around Brunswick Library, which we 30 per cent born overseas. reopened in August 2014! And for many of you, your We also provided $382,000 worth of engagement with Council is about the grant funding to community groups services that we deliver on the ground, and individuals to put on a range of every day – which is why we’re always classes, activities and exhibitions, striving to be the best we can be with upgrade sports facilities, and more. our Meals on Wheels, home care, Because that’s what we’re about – Maternal and Child Health Service, you. Our people continue to be our sports and aquatic centres, libraries greatest asset, and I am proud to INTRODUCTION 12 Moreland City Council

CHIEF EXECUTIVE OFFICER’S REPORT

Nerina Di Lorenzo ANNUAL REPORT 13 2014 – 2015

Welcome to Moreland City Council’s Annual Report 2014–2015. I began as CEO in February, and am happy to report that Council has continued its strong financial and operational performance during this financial year.

Our operating expenses for the year On the planning front, new residential totalled almost $150 million, with an zones were introduced in April, accounting surplus of $34.06 million. NONE OF THIS including a two-storey height cap for Overall financial outcomes were in developments for 66 per cent of the line with the Five Year Financial Plan, COULD HAVE BEEN municipality, while busier areas close which outlines our medium-term DONE WITHOUT to transport, shops and services are blueprint for delivering services open to appropriate development and maintaining assets. THE HARD WORK to encourage more sustainable lifestyles. While the state government We invested $41.9 million into OF OUR STAFF AND did not accept all our proposals, this capital works in 2014–2015. Of this, THE CONTRIBUTIONS change will go a long way to ensuring the largest share was invested in our city remains a liveable, vibrant roads and car parks ($8.2 million), AND COOPERATION and sustainable place. with land assets ($8.2 million), parks OF THE COMMUNITY, and reserves ($3 million) and climate In addition to the projects and change mitigation works ($2.3 million) AND I THANK THEM improvements I’ve mentioned, also receiving significant investment. FOR THEIR EFFORTS. we continued to provide vital everyday services to our citizens. In March we installed the last of We collected more than 50,000 450 solar panels on the roof of tonnes of household waste, green the Coburg Civic Centre. Council and a range of other ways residents waste and recycling this year. We received carbon neutral certification can conduct their dealings with planted 23,935 trees and shrubs, the previous year, thanks in part us from the convenience of their registered 16,010 pets, delivered to paying carbon offsets. The Civic computer or mobile device. 116,711 meals to elderly Moreland Centre solar panels, along with Several Council facilities received an residents and lent books and other those on the Coburg Leisure Centre, upgrade this year and two new sports media out 1.3 million times. are reducing the cost of our carbon facilities became available to the neutral status while reducing our None of this could have been done community. In August the Brunswick emissions. without the hard work of our staff and Library was reopened to the public the contributions and cooperation of Almost 3,000 street lights in after a $4 million redevelopment, the community, and I thank them for Brunswick were replaced with LEDs with a more pleasant and energy- their efforts. between February and June 2015. efficient interior and more space The new lights are not only more for digital learning and enjoyment. I look forward to another year efficient, but will also last much longer of helping to make Moreland The $6.4 million CB Smith Sport than traditional lights, saving money the fantastic place that it is to and Recreation Facility, for which on maintenance and renewal. live, work and play. we contributed the main $5.3 million Sustainability is not the only area share in partnership with John in which we are harnessing the Fawkner College, opened as our power of new technology to better first municipal soccer venue and serve our community. This year we the principal sporting facility for the launched a new website, which college. The suburb of Gowanbrae Nerina Di Lorenzo includes the ability to watch a live saw the opening of its first sports video stream of Council and Urban ground this year – multipurpose Planning Committee meetings, courts that can be used for monthly online chats with the Mayor, basketball, netball and tennis. Man and his cat, Pascoe Vale South

How old do you think I am? I’m 90. I used to be a pastry cook. Beautiful apple pies. After my wife passed away, I come to the park every day. It passes the time. You find some good people.

ALEC ANNUAL REPORT 17 2014 – 2015

DESCRIPTION OF OUR MUNICIPALITY

LOCATION POPULATION BIRTHS The City of Moreland is Our population remained We have seen a dramatic located between 4 and 14 steady at around 136,000 increase in births, with more kilometres north of central between 1996 and 2001. than 2,000 babies born Melbourne and covers the Since 2001, it has increased in Moreland each year inner and mid-northern by approximately 27,500 since 2005. suburbs of Brunswick, or 20 per cent.1 In this financial year, 2,664 Brunswick East, Brunswick In June 2014, our estimated babies were born in Moreland. West, Pascoe Vale, Pascoe resident population was This is a 15.4 per cent increase Vale South, Coburg, Coburg 163,488. since the 2008–2009 financial North, Hadfield, Fawkner, year, and a 40 per cent Glenroy, Oak Park and Between 2011 and 2036 increase since 2000–2001.2 Gowanbrae. Small sections it is predicted we will see Fitzroy North and Tullamarine unprecedented population are also part of Moreland. growth. The municipality is going to grow by 39 per cent – from a population of 154,245 2,664 BABIES WERE in 2011 to 214,320 in 2036. BORN IN MORELAND IN The majority of the growth THIS FINANCIAL YEAR will occur by 2021 with the Brunswick Statistical Local Area predicted to become Moreland’s most populous area, overtaking the Coburg Statistical Local Area.

163,488 PEOPLE LIVE IN MORELAND WITH APPROXIMATELY 214,300 BY 2036

Footnotes 1 2011 Census of Population and Housing, Australian Bureau of Statistics 2 Moreland Maternal and Child Health database INTRODUCTION 18 Moreland City Council

CULTURAL The main countries of birth of DIVERSITY residents, apart from Australia, OUR RESIDENTS represent the traditional migrant SPEAK 140 Our city is a highly culturally and groups from Europe, including Italy, linguistically diverse municipality, Greece and the United Kingdom, DIFFERENT with residents speaking approximately along with India, Lebanon, China LANGUAGES 140 different languages at home. and New Zealand.4 In 2011, more than one-third New arrivals are changing our of residents were born overseas. cultural diversity and are now more Of those residents, 87 per cent likely to be born in India, China, were born in non-English-speaking Pakistan, Lebanon, Sri Lanka, countries. the Philippines, Nepal and Iran.5

LIFE EXPECTANCY

AGE PROFILE The life expectancy of our five years. The life expectancy residents is similar to the of females born in Moreland Our age profile is broadly Victorian average and is between 2008 and 2010 is similar to that of metropolitan increasing. Women live longer 84.2 years, compared to Melbourne, with a median than males by approximately 78.7 years for males.7 age of 35 years. However, we have a larger proportion of older residents compared to the Melbourne Statistical Division (MSD). There are smaller proportions of 5 to 14 year olds and 55 to 64 year olds relative to the MSD. The number and proportion aged 35 to 54 years has increased substantially over the last decade and is now similar to the MSD.6 EDUCATION AND OCCUPATION

Over the past decade, more having completed a non-school year 10 – 12 students are staying qualification than in 2001.9 at school; however, there was The proportion of managers a slight decrease between 2011 and professionals has increased INDIGENOUS and 2013, from 90 per cent to from 19 per cent in 1996 to POPULATION 88 per cent.8 29 per cent in 2011, while the The total number of The proportion of residents who proportion of technicians and Indigenous people living in have non-school qualifications trades workers, labourers and Moreland increased to 703 has increased, with 47 per sales workers has decreased.10 in 2011 from 627 in 2006.3 cent more residents in 2011 ANNUAL REPORT 19 2014 – 2015

LOCAL BUSINESS AND EMPLOYMENT Health care and social assistance businesses now employ the largest number of people, with manufacturing falling into second place and retail trade coming in third. HOUSING stable over the past three census AND FAMILIES periods, while the proportion of lone person households has In 2011, there were 63,302 increased. Moreland had 27 per private dwellings (including cent lone person households in unoccupied dwellings), up 2011, which is 4 per cent more from 59,231 in 2006. than metropolitan Melbourne.11 The proportion of families with children decreased to 59 per cent of all household types in 2011, which is 4 per cent less THERE ARE 63,302 than metropolitan Melbourne. PRIVATE DWELLINGS The proportion of households IN MORELAND comprised of couples without children has remained fairly

HOUSING STOCK

Sixty-five per cent of occupied compared with the MSD (27 per Following the rapid rise in house private dwellings in Moreland cent). Between 2006 and 2011, and unit prices, the median price are separate houses, which is the number of private dwellings for both houses and units fell significantly below the metropolitan in Moreland increased by 4,071 in 2011 and 2012. Our highest average of 73 per cent. This is to a total of 63,302. recorded median house price was due to the increase in flats, units, $630,000 in 2014 and the median Residential property prices have apartments and semi-detached price for a unit in 2013 increased risen at a relatively fast rate over dwellings. We have significantly by a modest 0.4 per cent to the past decade, especially higher proportion of these $425,000 in 2014.12 between 2007 and 2010. dwellings (35 per cent)

36 PER CENT OF DWELLINGS IN MORELAND ARE MEDIUM OR HIGH DENSITY

Footnotes

3 2011 Census of Population and Housing, 7 Department of Human Services, 11 2011 Census of Population and Housing, Australian Bureau of Statistics Life Expectancy Estimates Australian Bureau of Statistics 4 2011 Census of Population and Housing, 8 Department of Education and Training, 12 A Guide to Property Values, Department Australian Bureau of Statistics Summary Statistics Victorian Schools of Sustainability and Environment, 2014 5 Department of Immigration and Border 9 2011 Census of Population and Housing, Protection Settlement database Australian Bureau of Statistics 6 2011 Census of Population and Housing, 10 2011 Census of Population and Housing, Australian Bureau of Statistics Australian Bureau of Statistics THE YEAR IN REVIEW 20 Moreland City Council

THE YEAR IN REVIEW

A year in the life of Moreland

JULY AUGUST SEPTEMBER

»» Council votes to take legal »» Council marked the 100th »» Nine CCTV cameras along action against the East West anniversary of Gallipoli Sydney Road Brunswick are Link to overturn Planning with library exhibitions, connected to the Brunswick Minister Matthew Guy’s decision replanting the Avenue of Police Station and are now on June 30 to allow the East Honour at Coburg Lake and fully operational 24 hours West Link to go ahead. installing new signage and a a day. commemorative plaque, and »» The 2014 Winter Night Screen »» Council earns a Highly cleaning war memorials in Program – a series of innovative Commended Excellence in Coburg and Pascoe Vale. short videos by local artists Infrastructure 2014 for the curated by the Counihan Gallery »» Brunswick Library reopens Charles Mutton Reserve In Brunswick – screens nightly after $4 million of structural Stormwater Harvesting in the Brunswick Civic Centre enhancements and upgrades System by Stormwater window for passers-by to enjoy. that are complemented by Australia. The project will improved services. save over 13 million litres of »» Night-time video footage of a drinking water while helping stretch of the Upfield bike path »» Our Meals on Wheels service to improve the water quality with new LED lighting is viewed celebrates 61 years of of Merri Creek. more than 600 times on social supplying quality meals to media. Our long-term goal is people’s homes. Around 500 »» Movies at the Courthouse to light up the whole bike path Moreland residents receive premieres at the historic to encourage more people Meals on Wheels every day. Coburg Courthouse with to cycle, more often. Hollywood classic Singin’ in the Rain, strictly reserved for senior citizens and free for Aged and Disability Pension card holders. ANNUAL REPORT 21 2014 – 2015

2014

OCTOBER NOVEMBER DECEMBER 2015 »

»» Councillor Meghan Hopper »» Fawkner Festa happens over »» An average of 8,400 people becomes the Mayor of four fun-filled days with artistic, enjoy the fabulous food, Moreland. cultural and recreational music and market stalls at the activities across Fawkner, Coburg Night Market, which »» Coburg Carnivale – Coburg’s including workshops, a is run by Council on the four annual celebration of exciting parade, storytelling sessions Friday nights leading up to local talent over five days – takes and performances. Christmas. off with roving performers, including giant ants from the »» A Seniors’ Flash Mob »» Our poignant White Ribbon Polygot Theatres, a suitcase surprises locals in Victoria Mall Day video, which showcased rummage and art installations. in Coburg with an inspired the men of Moreland choreographed dance speaking out against »» Our annual contemporary art performance. Over 160,000 domestic violence, reaches exhibition along the Upfield rail people watch the video on our 25,904 people through our and bike precinct, MoreArt, social media channels and it social media channels and features with some truly also screens on Channel Ten’s website, and is screened spectacular art, including a The Project. in Federation Square. twilight festival of light and sound, and amazing sculptures »» Counihan Gallery In Brunswick »» Oxygen Youth Space turns and installations. launches its Summer Show one – over 400 young people featuring the work of 50 artists dropped into the new space »» Robinson Reserve with the theme ‘Speak out’, in Coburg North throughout Neighbourhood House in which acknowledges the the year to participate in a Coburg wins the Playgroup spirit of artist and activist range of free classes and Agency of the Year award Noel Counihan. programs. and Je Joue Playgroup in Pascoe Vale wins Community Playgroup of the Year out of 86 nominations in the Playgroups Victoria Awards 2014. THE YEAR IN REVIEW 22 Moreland City Council

2015

JANUARY FEBRUARY MARCH

»» School kids from all over »» Nerina Di Lorenzo takes over »» The CB Smith Sport and Moreland enjoy the fun from Peter Brown as Chief Education Facility in Fawkner activities offered by our Executive Officer. Nerina officially opens – our first primary school holiday comes from Wyndham municipal soccer venue program at four venues, Council and was previously and the principal sporting as well as the free Director of City Infrastructure education facility for John holiday activities at our at Moreland City Council. Fawkner College and local libraries, including fun live soccer clubs. »» Movies in the Park kicks performances and craft off for the summer with a »» Brunswick Music Festival and book-related activities. screening of the Japanese – one of Victoria’s premier »» Construction starts on animation Ponyo at the CB music festivals and a major Morgan Court public space Smith Reserve in Fawkner. multicultural event – fills local in Glenroy to transform the venues all over Brunswick with »» Applications open for our area with a new surface, music from roots and blues annual community grants – seating, garden beds and to African and Indigenous just one of the ways that we sculptural exhibition boxes. music and music by local support initiatives developed young people. by our local community that add to the overall quality »» On International Women’s of life of our residents. Day, Mayor Meghan Hopper presents the 2015 Honouring Women in Moreland Awards to 18 very special women for their contribution to our city. ANNUAL REPORT 23 2014 – 2015

APRIL MAY JUNE

»» On 8 April, we live streamed »» We welcome 90 new »» Our new website hosts our first our first video of a Council Australian citizens to our monthly online Chat with the meeting – a great opportunity municipality at our May Mayor on 22 June – another for residents to watch citizenship ceremony at the opportunity for residents to meeting proceedings in real Coburg Civic Centre. actively engage with our Mayor. time online, giving them »» Our new public website, »» Gowanbrae Multipurpose greater access to Council including new mobile Courts officially open – the decision making and debate. capability, goes live. The first sporting facility for the »» On 30 April, the Minister new site is more user-focused, Gowanbrae community, for Planning gazetted interactive and engaging. featuring two fenced synthetic Amendment C153 to the In our first month we have courts lined for tennis, netball Moreland Planning Scheme over 100,000 sessions on and basketball. to introduce new residential the site by 60,000 users, »» A total of 2,850 street lights zones for all residential land viewing more than a quarter are replaced with energy in Moreland. The amendment of a million pages. efficient LED lights across included capping building »» The new Built Environment the Brunswick area between heights at two stories and no Sustainability Scorecard February and June 2015. more than four dwellings in the (BESS) was launched – a The LED lights are 77 per Neighbourhood Residential testament to the inhouse cent more energy efficient Zone, which covers 66 per skills of our officers who were and will last up to 20 years. cent of Moreland. the lead Council in developing »» Bush Reserve opens – a new »» The Craigieburn Express bike the project with 20 other sustainable community space path – between Oak Park local Councils, the Council in Coburg for locals to meet, railway station and Devon Alliance for a Sustainable play and have fun. Road – opens for cyclists. Built Environment and MAV. »» We finish installing solar PV at Coburg Civic Centre, which now has over 450 solar panels, making it one of the largest solar systems operating on a municipal civic centre in Australia. The daily commute ANNUAL REPORT 25 2014 – 2015

CHALLENGES

Cyclist safety Ballerrt Mooroop site Development in The safety of cyclists in Moreland Council is determined to see the our activity centres continues to be an important issue land at the former Ballerrt Mooroop Victoria’s activity centres remain for Council. During 2014–2015, School in Glenroy, which was closed the focus of concern for communities we made substantial investments in 2012, retained for public use. in relation to development height to increase bicycle and shared Our overall ability to acquire property and amenity impacts. We are seeking paths – our network of paths and has been made more difficult in the mandatory height controls, rather bike lanes now runs for more than tighter financial environment of rate than the state-preferred approach 88 kilometres. We are also working capping, but we are working with of discretionary controls, for two closely with state government the state government to preserve proposed amendments to the agencies, transport companies this land for the community. Council Moreland Planning Scheme: and interested community groups formed a working group in June Coburg (Amendment C123) and to discuss a range of strategies to 2015 to explore the ideas and Brunswick (Amendment C134). improve bicycle safety on Sydney possibilities for keeping the site Both amendments await a decision Road, the management of which in public ownership and is working by the Minister for Planning, including falls under VicRoads. with various organisations and state whether the Minister will support and federal governments to achieve mandatory controls and propose A new hospital for the north this. We hope that a resolution height and setback controls to guide the scale of development. We are continuing to implement will be reached in the 2015–2016 financial year. With significant population growth The Coburg Initiative vision, which in Moreland, we believe these will provide for over 750 new jobs controls are vital if we are to with the development of a major Community satisfaction maintain and improve our liveability private hospital on Council-owned In 2015 we participated in a as a unique, attractive and diverse land near the former Pentridge survey of local government services place within metropolitan Melbourne Prison site in Coburg, adjacent administered by the Department and we will continue to push for to the Coburg Civic Centre. Our of Environment, Land, Water and their implementation. preferred partner has agreed to Planning, which aims to provide data make a substantial investment to so Councils can track their residents’ develop a full business case that views over time. Although we scored we expect will lead to a development above 90 per cent satisfaction decision by late 2017. Our challenge for family support services, waste is to ensure that this new hospital management and recreational is not only a major economic facilities, the score for our overall stimulus for Coburg, but also performance was down 4 per provides improved healthcare cent from 2014 to 83 per cent. services to Moreland and the Our challenge is to focus on how northern region of Melbourne. we can improve ratings across the board in 2015–2016. THE YEAR IN REVIEW 26 Moreland City Council

FINANCIAL OVERVIEW

The ‘Financial report’ section in this report includes the comprehensive financial statements prepared in accordance with relevant accounting standards and legislative requirements. These statements are detailed and, as such, some stakeholders and community members may find them difficult to interpret. This overview aims to simplify the pertinent information regarding our financial performance for the year.

Five Year Financial Plan Operating income – Other major sources of income include government grants of Council is guided by the principles where did the money come from? $20.1 million (or 11 per cent of of the Five Year Financial Plan for the total income) and user charges period 2011–2012 to 2015–2016. Total income for the year was and other fines of $17.3 million This plan is not intended to be static $183.7 million. There was an overall (or 9.4 per cent of total income). and is reviewed annually as part of increase in income of $21.2 million our planning process and updated (or 13 per cent) compared to that to reflect changing circumstances. of 2013–2014, primarily due to The aim of the Five Year Financial increased rates and charges which Plan is to ensure that we are able also makes up the majority of to undertake our strategic and income with $122.8 million. governance role, and to maintain and repair our infrastructure assets at the level expected by the community, while continuing to deliver essential services. ANNUAL REPORT 27 2014 – 2015

Operating expenses – OPERATING EXPENDITURE PROFILE FOR 2014–2015 how was the money spent? Transport 1.86% Waste collection and Total operating expenses for the recycling 7.03% year were $149.7 million. Overall Systems and expenses increased in the year by communications Administration approximately $2.3 million, which 4.85% 7.53% is primarily due to employee and Street cleansing 2.30% contractor costs. The majority of Aged, disability and social services 9.15% total expenses consist of employee Roads and costs of $72.9 million and contract footpaths 2.52% Arts, culture and payments, materials and services libraries 4.14% Recreation and of $51.5 million. leisure 1.52% Asset maintenance We are reporting an accounting Property services 4.04% surplus of $34 million for the financial 3.82% year. It is, however, important to note Asset management that this accounting profit includes Planning and economic 1.06% items that are either one-off or development 7.85% committed for capital expenditure. Parks and street trees Capital works After excluding non-cash developer 6.36% 24.23% contributions, capital grants and Local laws and regulations 3.45% Youth and children’s contributions and open space services 2.06% contributions, we achieved an Health and immunisation 2.32% underlying surplus of $17.7 million. Customer service This represents 9.6 per cent of total Governance 2.48% 1.34% budget turnover of approximately $184 million, where the surplus is necessary to meet debt redemption payment obligations and to complete carry-forward projects.

Capital expenses Asset class $ amount Asset class $ amount Total capital expenditure for the year was $41.858 million. We Roads and car parks $8,242,529 Early years facilities $1,204,271 continue to address our capital Land assets $6,817,283 Brunswick works program across a wide $1,160,623 Parks and reserves $3,029,122 structure plan range of projects, with the total Information $1,110,909 capital spend being $20.489 Climate change $2,268,010 technology million above the depreciation Footpaths $1,851,379 Drainage $1,064,657 for the year. and bike paths Community Transport $967,065 Major capital works by asset class $1,400,905 use facilities delivered in 2014–2015 include: management Library collection $945,988 Council fleet $1,394,430 Bridges and culverts $774,590 Coburg 2020 $1,386,643 Pavilion and Central Glenroy $754,680 $1,293,518 sports clubs THE YEAR IN REVIEW 28 Moreland City Council

SERVICE DELIVERY

We are responsible for a wide These services and infrastructure on the challenges we faced, range of services from waste support the wellbeing and prosperity refer to the ‘Our performance’ management, delivering meals and of our community. For more section in this report. supporting people in their homes to information on our achievements issuing planning permits, registering to improve infrastructure and increase animals and cleaning streets. delivery of these services, and

This table provides the quantities of a selection of key services we provide to our residents. 433 KG 12,354.18 T Landfill (average rubbish per dwelling) Paper and bottles recycled 29,335 T Waste sent to landfill

244,641 TOTAL DELIVERED MEALS 1,302,179 8,484.54 T Meals delivered to Moreland Library loans Green waste collected residents 116,711 Whittlesea / Nillumbik contract (meals) 47,614 Whittlesea / Nillumbik contract (sandwiches) 16,293

1,663 Planning permit 23,935 applications received Trees and shrubs planted 31,472 KM Streets cleaned

11,080 151,000 HRS Home support, personal care, 4,930 respite support, assessment 351 services, planned activity groups Planning permit applications Dogs and cats registered and home maintenance received for subdivision Meals on Wheels chefs

Awards and citations Community satisfaction »» Annual Report 2013–2014 – We are committed to building Our lowest scores were for planning Australasian Reporting and maintaining a vibrant and for population growth in the area Awards (Bronze) liveable city. at 70 per cent and general town planning policy at 71 per cent. »» Aquatics Recreation Victoria Every year we participate in a Annual Awards – Online survey of local government services Results from our annual Community Communications Finalist administered by the Department Indicators Survey 2014 show of Environment, Land, Water and continuing high levels of perceived »» Keep Australia Beautiful – Planning. The survey aims to provide community wellbeing, with the vast Community Government data so individual Councils can majority (95 per cent) of our residents Partnerships Award Winner: track the views of their residents believing their local area is a good Moreland Energy Partnership, over time. Sixteen Council services place to live. the road map to carbon neutrality were surveyed in 2015. As in previous years, a very high 91 »» Keep Australia Beautiful – per cent agreed that Moreland is a National Energy Innovation good place to raise a family. Eighty- Sustainable Cities Award Winner nine per cent agreed that they were »» LGPro Awards – Community able to access a variety of recreation Infrastructure Under $1.5 million WE SCORED ABOVE facilities and leisure activities, while Finalist – Oxygen 90 PER CENT FOR 87 per cent of respondents agreed with the statement ‘You can get to »» LGPro Awards – Sustainability FAMILY SUPPORT know your neighbours’. Initiative Finalist 2014 for the SERVICES, WASTE Moreland Electric Vehicle Project Ninety-one per cent of residents MANAGEMENT AND agreed with the statement ‘Cultural »» Place Leaders Asia Pacific – diversity enriches local community Place Practice Category Award RECREATIONAL life’ and 90 per cent agreed Winner 2014 for the Fighting FACILITIES. that people from different ethnic Crime with Placemaking, Better backgrounds are made welcome Block Brunswick initiative The score for our overall performance in their neighbourhoods. »» Stormwater Australia – Highly was 83 per cent, which is down Only half of our residents agree that Commended Excellence in 4 per cent from 2014. We scored Moreland is an affordable place to Infrastructure 2014 for the above 90 per cent for family support live, dropping from 68 per cent in Charles Mutton Reserve 13ML/a services, waste management and 2005 and 52 per cent in 2012. Stormwater Harvesting System recreational facilities. For elderly »» Vicsport Award Winner – Best support services we scored 89 Sports Development Initiative by per cent and for appearance of an Industry Associate/Corporate public spaces 88 per cent. Supporter – ALLPLAY »» Victorian Health Promotion Foundation Awards Finalist – ALLPLAY

I miss being able to go to the movies the most. But I took him to the library the other day and he was interested in the books and was smiling and touching things. It’s great to see him actually excited and interacting now.

CLAIRE OUR COUNCIL 32 Moreland City Council

OUR COUNCIL

Eleven Councillors represented our community in 2014–2015. These Councillors are elected from three wards across our municipality: North–West Ward, North–East Ward and South Ward.

SOUTH WARD NORTH–WEST NORTH-EAST Mayor and Councillor WARD WARD Meghan Hopper Deputy Mayor Councillor Councillor and Councillor Sue Bolton Helen Davidson Samantha Ratnam Councillor Councillor Councillor Michael Teti Lita Gillies Lambros Tapinos Councillor Councillor Lenka Thompson John Kavanagh Councillor Councillor Rob Thompson Oscar Yildiz JP ANNUAL REPORT 33 2014 – 2015

Councillors Our Councillors are elected by residents every four years. Councillors provide an important link between the community and Council. The last election was in 2012 and the next election is in 2016. Councillors elect the Mayor annually. In addition to representing the interests of their wards, some Councillors have responsibility for particular issues and are members of our two major committees – the Urban Planning Committee and Audit and Risk Management Committee.

Mayor and Councillor Cr Samantha Ratnam Cr Rob Thompson Meghan Hopper Elected to Council in 2012. Elected to Council in 2012. Elected Mayor in 2014, elected Councillor Responsible For Social Councillor Responsible For Deputy Mayor in 2013–2014 Diversity, Multiculturalism and Children, Governance and Local and elected to Council in 2012. Reconciliation, and Youth; Member Laws; Member of the Urban Planning Councillor Responsible For of the Urban Planning Committee Committee; and Member of the Audit Status of Women and Chair of (from October 2014); and Member and Risk Management Committee. the Urban Planning Committee of the Audit and Risk Management P (03) 9018 5310 (until October 2014). Committee (from October 2014). M 0409 760 436 M 0409 694 937 P (03) 9018 5324 E [email protected] E [email protected] M 0433 275 434 E [email protected] Cr John Kavanagh Deputy Mayor and Councillor Elected Mayor in 2011–2012 Helen Davidson Cr Sue Bolton and elected to Council in 2004, Elected Deputy Mayor in 2014 Elected to Council in 2012. 2008 and 2012. and elected to Council in 2012. Councillor Responsible For Councillor Responsible For Aged Chair of the Urban Planning Accessible and Affordable Housing. Services, City Amenity, Transport and Committee (from November 2014). Waste Services and Chair of the Audit P (03) 9018 5246 and Risk Management Committee. P (03) 9018 5308 M 0417 583 664 M 0403 709 948 E [email protected] P (03) 9018 5257 E [email protected] M 0427 550 935 E [email protected] Cr Michael Teti Cr Lambros Tapinos Elected Deputy Mayor in Cr Oscar Yildiz JP Elected Mayor in 2008–2009 2011–2012 and elected and 2013–2014 and elected to Council 2008 and 2012. Elected Mayor in 2010–2011 to Council in 2008 and 2012. and 2012–2013 and elected Member of the Urban Planning to Council in 2008 and 2012. Councillor Responsible For Finance Committee (until October 2014). and Economic Development and Councillor Responsible For P (03) 9018 5296 Member of the Urban Planning Recreation and Leisure and M 0435 105 368 Committee (from October 2014). Open Space. E [email protected] P (03) 9018 5265 P (03) 9018 5263 M 0433 419 075 M 0413 850 357 E [email protected] Cr Lenka Thompson E [email protected] Elected to Council January 2012 (via countback) and October 2012. Cr Lita Gillies Councillor Responsible For Elected Deputy Mayor in 2012–2013 Sustainability, Climate Change and elected to Council in 2012. and Water. Councillor Responsible For Arts P (03) 9018 5261 and Culture and Member of the M 0417 353 020 Urban Planning Committee. E [email protected] P (03) 9018 5249 M 0418 213 777 E [email protected]

Coburg Night Market OUR PEOPLE 36 Moreland City Council

OUR PEOPLE

CORPORATE STRUCTURE

Chief Executive Officer – Nerina was previously the Director Nerina Di Lorenzo of Infrastructure at Wyndham City Council. Prior to this role, she spent IN HER TIME AS Nerina Di Lorenzo commenced 14 years working at Darebin and as our new Chief Executive Officer Moreland City Councils. In her time DIRECTOR OF CITY at the end of January 2015, taking as Director of City Infrastructure at INFRASTRUCTURE the reins from Peter Brown, who Moreland she left a record of strong had been in the role for 12 years. achievement. AT MORELAND SHE Nerina is a highly qualified local Nerina grew up and was LEFT A RECORD government executive, holding educated in Moreland. both a Bachelor of Engineering OF STRONG and Bachelor of Business ACHIEVEMENT. Administration.

Staff awards ANNUAL REPORT 37 2014 – 2015

OUR CORPORATE STRUCTURE AS AT 30 JUNE 2015

Chief Executive Officer Nerina Di Lorenzo

Manager Marketing Internal Auditor and Communications Ian Thomas Marco Bass

Manager Human Resources, Occupational Health and Safety and Risk Frank Joyce

Director Planning Director City Director Social Director and Economic Infrastructure Development Corporate Services Development Grant Thorne Vacant James Scott Kirsten Coster

Manager Manager Cultural Manager Finance and Group Manager Urban Safety Development Business Systems City Development Olivia Wright Genimaree Panozzo Helen Sui Phillip Priest

Manager Manager Economic Manager Capital Social Policy Manager Development Works Delivery and Early Years Governance Maria-Luisa Nardella Greg Gale Barry Hahn Lidia Harding

Manager Manager Aged, Manager Council Manager City Open Space and Disability and Planning and Strategy and Design Street Cleansing Emergency Relief Performance Sue Vujcevic Andrew Dodd Samantha Sharp Anita Craven

Manager Manager Roads, Youth Leisure and Manager Property Manager Places Fleet and Waste Social Support Anna Vlahos Briare McElhone Boyd Clare Vacant

Manager Manager Information Strategic Technology Transport Dennis Wilson Lee Dowler

Project Management Manager Customer Coordinator Experience Vacant Vacant OUR PEOPLE 38 Moreland City Council

COUNCIL STAFF

As at 30 June 2015, we Inclusive employment All employees have access to had 1,078 employees. the Employee Assistance Program Council broadened the Work for counselling and advice. Experience Program to increase options for secondary and tertiary students, community-based Workplace relations CEO Group 30 placements and non-structured Throughout the year, workplace work experience. Over the year, City Infrastructure 310 relations remained largely harmonious. work experience has been provided for secondary and tertiary school The Moreland City Council Enterprise Corporate Services 136 students, graduates and people Agreement 2012 expired 30 June Planning and with a disability. 2015 and negotiations with unions Economic Development 99 for a new agreement commenced. We have also run numerous Social Development 503 traineeships in home and We continued to implement our community care, road maintenance, revised Council Employee Code of Conduct across the organisation. Total 1,078 parks, fleet mechanics, administration and business, with a number of An organisational restructure was trainees offered ongoing employment implemented 1 July 2014, following Full time 542 following obtaining their qualification. consultation with unions and staff A number of employees have during June 2014, reducing five Part time 408 flexible work arrangements to departments to four and creating support them to achieve a work-life a new Property Branch. Casual 128 balance and maintain employment. No days were lost due to These arrangements include industrial dispute. supporting employees who are Male 667 carers; seeking phased retirement; Building our have young children; have a disability; Female 411 internal capability have health issues; or are studying. The year saw an increase in internal services supporting managers and Indigenous employment supervisors to plan effectively and deliver services at optimum levels. We are committed to increasing OUR EMPLOYEES employment opportunities for This support included identifying Indigenous residents in the HAVE FLEXIBLE WORK and using Moreland population Moreland and adjacent areas ARRANGEMENTS TO research to underpin evidence-based through a dedicated Indigenous decision making and continuous traineeship program. SUPPORT THEM TO improvement, specifically around simplifying processes to improve the This financial year, one trainee ACHIEVE A WORK- customer experience and automating was employed for a period in LIFE BALANCE processes to improve corporate the Information Technology team planning and reporting. and a full-time Indigenous trainee AND MAINTAIN was employed in the Operations EMPLOYMENT. The focus on service planning Centre administration team and the continues, with units completing traineeship has been extended into their work plans and using active 2015–2016. A previous Indigenous performance measures to guide We also provide additional support trainee graduate was also offered a resourcing and budgeting. to employees who experience family permanent position in the Records violence, including paid leave and The commencement of our new Unit. Recruitment is underway for flexible work arrangements. Chief Executive Officer renewed another two Indigenous trainees our focus on leadership and for 2015–2016. culture. Leaders throughout the ANNUAL REPORT 39 2014 – 2015

organisation participated in leadership development, facilitation, change RACHEL management and 360-degree Administration feedback to support team building Officer, Coburg and planning. Library The Corporate Management Team continued to improve workplace culture using the 2014 Culture Survey results. The team actively engaged their teams in planning improvements and increased planning to support improved delivery of the Council Vision, which is articulated in both the Council Action Plan and Advocacy Program.

During the year, the program THE YEAR SAW focused on coaching and managing AN INCREASE IN for performance to support the THROUGHOUT organisation’s shift towards a INTERNAL SERVICES coaching culture. It will continue this THE YEAR, 480 SUPPORTING focus and on providing practical and STAFF PARTICIPATED interactive development opportunities MANAGERS AND for supervisors and managers in IN 17 DIFFERENT SUPERVISORS TO 2015–2016. E-LEARNING PLAN EFFECTIVELY Learning and COURSES. AND DELIVER development SERVICES AT e-Learning Corporate Training Program OPTIMUM LEVELS. We continue to use a web-based We are committed to investing in e-learning system to deliver our staff through development and compliance, induction and training opportunities and recognise An immersive coaching program personal development training that building internal capacity of over three months supported the online, with over 400 different staff contributes to improving the leadership development of 18 unit courses in our course library. performance of the organisation. managers, with six senior leaders becoming master coaches. The program focused on coaching CORPORATE TRAINING PROGRAM skills and promoted a constructive performance approach. Category Courses run Attendees (instances)

Our Aim for Blue leadership Occupational health and safety 34 381 development program supports a more constructive and higher Business and workplace performing workplace culture effectiveness (including 33 378 through a combination of diversity and social awareness) tailored workshops and development Leadership and management 17 148 activities designed to build existing Lifestyle, wellbeing and leadership capability and to enhance 8 112 the confidence of leaders when self-development interacting with staff. Compliance (face to face) 20 321 Aim for Blue explicitly links Compliance (online) 7 444 these activities to our Human Synergistics culture measurement Systems training 56 275 tools: Organisational Culture Inventory and Life Styles Inventory. Total 175 2059 OUR PEOPLE 40 Moreland City Council

OCCUPATIONAL HEALTH, SAFETY AND RISK

Occupational health We ensure that all employees, Actions undertaken during and safety (OHS) contractors and visitors to our this financial year include: workplaces understand and »» Achieving initial level SafetyMAP We are committed to providing a comply with our OHS Policy and Accreditation across the entire safe, productive workplace that cooperate with any actions taken by organisation, with 37 units now enhances the quality of working life us to comply with relevant legislation. and our ability to provide quality accredited To achieve this, we strive to fully services to the community. »» Continuing to raise awareness integrate health and safety into of the importance of OHS and all aspects of our activities and incident reporting throughout ensure our safety management the organisation WE ARE COMMITTED system provides a preventative and systematic approach to OHS. »» Continuing to effectively operate TO PROVIDING A Council’s consultation processes Our OHS Strategic Plan July with OHS committees and SAFE, PRODUCTIVE 2014–June 2017 has been representatives meeting regularly developed to facilitate compliance, WORKPLACE THAT and working together to achieve as well as continually improve outcomes, and ENHANCES THE OHS management. The plan QUALITY OF has six strategic objectives to be »» Continuing to work with high- actioned over a three-year period. risk areas to undertake risk WORKING LIFE AND assessments, mitigate risks and OUR ABILITY TO identify areas for improvement. PROVIDE QUALITY OHS TRAINING 2014–2015 SERVICES TO THE COMMUNITY. Course Courses run Attendees (instances) Contractor management 1 13 Our OHS Policy recognises our CPR 7 77 duties and responsibilities under Dangerous goods and hazardous 1 5 the Occupational Health and Safety substances Act 2004 and associated legislation, Fire safety 1 8 and accepts accountability for the First aid level 2 7 69 management of OHS program management and the resolution Health and safety 2 20 of health and safety issues. Manual handling 4 56 Our primary workplace safety Occupational violence prevention 1 9 objective is to eliminate risks to health OHS, risk and injury management 1 8 and safety so far as is reasonably Plant safety 1 7 practicable or if this is not reasonably practicable, to reduce those risks SMART defensive driver 2 23 so far as is reasonably practicable. Sun smart awareness 4 57 Traffic management 2 29

Total 34 381 NADIA Citizen Services Officer

The best things about my job are the people I work with and the camaraderie that we share. I also think the Moreland community is interesting and very diverse. I feel proud that I have worked 15 years in this job. OUR PEOPLE 42 Moreland City Council

MoreCare – injury INJURY MANAGEMENT management RESULTS There were 479 incidents reported DURING THE Incidents reported during this financial year, which is 479 YEAR, OVER (including injuries) 67 more than the previous period. 600 EMPLOYEES This increase is predominantly due Injuries reported 208 to increased awareness and the PARTICIPATED reporting of near misses, which Claims 20 increased from 102 the previous Average claim cost $33,887 IN OUR HEALTH year to 161 in 2014–2015. Days lost 889 AND WELLBEING Employees returned PROGRAM. 20 to work* THERE WAS A Staff who did not 0 Risk management DECREASE IN return to work* Risk management continues THE NUMBER OF to be a strong focus. Risk has * For return to work information, only INJURIES REPORTED time lost claims have been included. been integrated into our business planning and also continually AND WORKCOVER reinforced through projects and procurement. CLAIMS LODGED MoreHealth – employee DURING THE YEAR. health and wellbeing We regularly review the Service Unit Risk Registers and review Our Health and Wellbeing Program and update the Corporate is designed to support employees Risk Register every six months, We have implemented a range of to manage their own health and identifying high and extreme risks, initiatives to prevent injuries and, wellbeing through education. establishing treatment plans and if an injury is sustained, to assist During the year, over 600 employees monitoring those risks. Our Audit employees to return to their participated in self-funded pilates and Risk Management Committee pre-injury work and life as soon and meditation, skin checks, work then endorses the Corporate as possible. Initiatives include station ergonomic sweeps and Risk Register. the Early Intervention Program, physical activity sessions at Coburg Manual Handling Task Specific We hold regular OHS and risk Leisure Centre, as well as seminars training, ergonomic assessments, management workshops for covering topics such as nutrition, a targeted Health and Wellbeing supervisors and leaders as part emotional wellbeing, stress and Program, an active Occupational of our corporate training calendar. office ergonomics. Violence Committee, as well as a range of unit-specific targeted training. CelebrARTe at Coburg Uniting Church OUR PERFORMANCE 44 Moreland City Council

OUR PERFORMANCE

COUNCIL PLAN 2013–2017

At a special Council meeting on 24 June 2013, Council endorsed the Council Plan 2013–2017, including the Five Year Financial Plan.

Purpose Values: Strategic Planning Council exists to care for and How We Work Framework meet the changing needs of our Customers and Our Strategic Planning Framework community in a sustainable way. Community First provides an overview of the plans The Council Plan describes our We acknowledge our main and programs that drive our service strategic objectives in five themes purpose is to work with our delivery, projects and resource and the key initiatives to be community and customers. allocation. The Council Plan is a implemented to achieve them. four-year strategic plan that outlines Respect our contribution to the Moreland I will support and value others. Vision 2025 Community Vision. Personal Accountability By 2017, a sustainable I take pride in my work and Moreland will have a more am responsible for doing it well. resilient community, more attractive, accessible and Integrity safe places, a stronger local I will do what I say. economy and services that One Team meet the needs of our We will work within and across growing community. the organisation to achieve community outcomes.

Moreland’s Environmentally Council Plan Places and Sustainable five themes Spaces Moreland

Moreland’s Moreland’s Civic Sustainable People Leadership Economy ANNUAL REPORT 45 2014 – 2015

STRATEGIC PLANNING FRAMEWORK

Community wellbeing (needs and aspirations)

10 year Moreland 2025 City of view Community Vision Moreland

Key Strategic documents including Municipal Strategic Statement, transport, economic development, climate change, structure plans, community infrastructure

Health and Strategic Capital 4 – 5 Council Wellbeing Resource Works year view Plan Plan Plan Program

Council Prioritised Annual 1 year Action advocacy Moreland Budget view Plan program City Council

Service unit plans Mayor’s speeches

Individual performance plans OUR PERFORMANCE 46 Moreland City Council

COUNCIL PLAN PERFORMANCE MONITOR

The Performance Monitor provides a summary of our progress under the Council Plan’s three priority themes and the relevant outcomes for each theme.

MORELAND’S PEOPLE

Measure 2013–2014 2014–2015 Source

Outcome 1 – Moreland community members are mentally and physically healthy and active (Healthy)

Proportion of respondents satisfied 90% 92% LGV satisfaction with with Council performance in the local government survey area of recreational facilities

Immunisation rates per capita 94% 94% Australian Childhood (for children aged 60–63 months) Immunisation Register Early years participation Not available 88.4% Department of Education and rate in kindergarten Training – calendar year result Attendance at aquatic and 13,986 10,688 Recreation services leisure facilities and Council-owned allocation applications sports facilities – recreation services Attendance at aquatic and leisure 863,523 881,367 Contracted service facilities and Council-owned sports providers data reports facilities – contracted services

Outcome 2 – Moreland community members feel connected to others and have access to the necessary services (Connected)

Proportion of respondents satisfied 94% 95% LGV satisfaction with with Council performance in the local government survey area of family support services

Proportion of respondents satisfied 90% 89% LGV satisfaction with with Council performance in the local government survey area of elderly support services Rate the performance for access Not available 94% LGV satisfaction with to Council-provided services Local Government survey Council’s services help you feel Not available 64% LGV satisfaction with more connected to your community Local Government survey I work with and support young people to find their voice, learn some new skills, get their homework done and believe in themselves – they are intelligent, creative, funny and continually surprise, delight and challenge me.

SARAH Youth Worker, Moreland Youth Services

Measure 2013–2014 2014–2015 Source

Outcome 3 – Moreland community is educated (Educated)

There are opportunities for learning Not available 71% LGV satisfaction with and development for all ages provided Local Government survey by Council

Outcome 4 – Moreland community feels safe and is safe

Proportion of respondents agree 91% Not available Bi-annual Community Indicators ‘Your area is a safe place to live survey (no new result until late 2015) during the day’ Proportion of respondents agree 77% Not available Bi-annual Community Indicators ‘Your area is a safe place to live at night’ survey (no new result until late 2015)

Outcome 5 – Moreland community has access to affordable housing (Housed)

Proportion of advocacy program items 100% 100% Council report relating to affordable housing achieved

Outcome 6 – The human rights of Moreland’s diverse community are upheld

Number of human rights NIL NIL Governance records complaints against Council Rate the performance of Council Not available 91% LGV satisfaction with supporting the diversity of the Local Government survey Moreland community OUR PERFORMANCE 48 Moreland City Council

MORELAND’S PLACES AND SPACES

Measure 2013–2014 2014–2015 Source

Outcome 7 – People have access to local places, spaces and public transport (Accessible)

Proportion of residences within 99.3% 99.3% GIS report 500 metres of a park Rate the performance of access Not 95% LGV satisfaction with to Council facilities available Local Government survey Proportion of respondents agree 89% Not Bi-annual Community ‘You can access a variety of available Indicators survey (no new recreation facilities and leisure result until late 2015) activities in your local community’

Outcome 8 – People can access a variety of mobility options (Getting around)

Proportion of respondents 70% 78% LGV satisfaction with satisfied with Council performance local government survey in the area of local roads Proportion of respondents 70% 73% LGV satisfaction with satisfied with Council performance local government survey in the area of local footpaths On-road bike paths 0.42 metres 0.42 metres Capital Works Program records (formal and informal) per capita per capita

Off-road shared paths 0.40 metres 0.40 metres Capital Works Program records per capita per capita

Proportion of advocacy items 100% 50% Council report relating to public transport achieved

Outcome 9 – Attractive and well-maintained built environment, streetscapes and landscapes (Looking good)

Proportion of respondents satisfied 84% 88% LGV satisfaction with with Council performance in the local government survey area of appearance of public areas Proportion of respondents agree Not 85% Moreland Community Indicators ‘There are good parks and open available Survey (held every 2 years) areas in your neighbourhood’ Ministerial approval of Planning Amendment Amendments Victorian Government Gazette Scheme amendments that C122 approved C123 (Coburg) implement Council structure plans on 10 October and C134 2013 (Brunswick) adopted by Council in 2014– 2015 – awaiting ministerial approval ANNUAL REPORT 49 2014 – 2015

Measure 2013–2014 2014–2015 Source

Outcome 10 – Cultural and artistic focus of the City of Moreland continues to thrive (Creative)

Performances and other cultural 202 331 Performing Arts Moreland activities at Mechanics Institute report and Metanoia records Performance Arts Centre for Mechanics Institute Visits to Mechanics Institute 8,166 10,103 Performing Arts Moreland Performance Arts Centre (MIPAC) report and Metanoia records for Mechanics Institute

Outcome 11 – The historical places of the City of Moreland continue to be enhanced

Identified heritage sites Amendments Amendment Victorian Government Gazette and places retained C145, C129 C149 adopted by and C155 Council – awaiting ministerial approval

ENVIRONMENTALLY SUSTAINABLE MORELAND

Measure 2013–2014 2014–2015 Source

Outcome 12 – Reduction of non-renewable energy, fresh water usage and carbon emissions

Amount of water usage at Council 366,007 425,859 Council report facilities and open spaces mega litres mega litres Proportion of respondents satisfied 89% 85% LGV satisfaction with with Council performance in the local government survey area of environmental sustainability

Outcome 13 – Moreland community is focused on reducing consumption

Increase in recycling tonnage per capita 10.3 tonnes 9.9 tonnes Service records

Decrease in waste to landfill per capita 20.4 tonnes 17.9 tones Service records

Outcome 14 – Moreland community is environmentally aware and active

Perception of partners of Council’s Not available Not available New survey, not yet deployed performance as a partner

Outcome 15 – The City of Moreland’s natural environment is preserved and enhanced

Open space land per capita 35.9 m2 35.0 m2 GIS report (drop due to database maintenance) OUR PERFORMANCE 50 Moreland City Council

CIVIC LEADERSHIP

Measure 2013–2014 2014–2015 Source

Outcome 17 – Partnerships are used to deliver community outcomes

Percentage of advocacy 100% 87.4% Council report program items achieved

Outcome 18 – Moreland community has access to information, opportunities to participate in decision making and access to decision makers

Proportion of respondents satisfied 76% 72% LGV satisfaction with with Council performance in the local government survey area of community consultation and engagement Voter attendance at Moreland Not Not Last election was 2012 local government elections available available Proportion of respondents agree Not 70% Moreland Community Indicators ‘You feel adequately informed available Survey (held every 2 years) about Council activities such as festivals and events’ Proportion of respondents agree Not 69% Moreland Community Indicators ‘You feel adequately informed available Survey (held every 2 years) about Council services’ Proportion of respondents agree ‘People Not 59% Moreland Community Indicators have opportunities to participate in the available Survey (held every 2 years) decisions made by their local government’

Outcome 19 – Moreland City Council is financially responsible taking account of current and future needs

Asset renewal gap – 5-year average 0.96 0.96 Capital Works Program records Proportion of sealed local roads 6.5% 6.5% Capital Works Program records below the intervention level of 3.5 Proportion of footpaths 1% 1% Capital Works Program records ‘poor’ or ‘very poor’ Median rate level as a proportion 2.1% 2.1% Finance of median household annual income

Outcome 20 – Moreland community has access to responsive services

Proportion of respondents satisfied 86% 78% LGV satisfaction with with Council performance in local government survey the area of customer service Proportion of payments conducted online 73.9% 75.3% Pathway and supplier portal Percentage calls returned Not 74% New process implemented in late in 1 business day available 2014 to measure phone calls returned We both grew up in Glenroy, went to school here but we didn’t know each other. I met him when I gave him his first job. I was the manager and I hired him.

BENITO & LAUREN OUR PERFORMANCE 52 Moreland City Council

PERFORMANCE REVIEW

MORELAND’S PEOPLE

Major initiative Achievements Challenges

Outcome 1 – Moreland community members are mentally and physically healthy and active (Healthy)

City Oval Construction is well advanced Delay due to tendering in January with with expenditure of a third the no tenders received for design and Master plan and ground capital budget by 30 June. construction and a second tender landscaping improvements, process with fence fabrication and including detailed design and installation contractor selected in April. works for improved community access, including fence removal Works have been split into fence and landscape improvements tender plus construction packages with contract suppliers. Scheduled to finish in August 2015.

CB Smith Reserve The CB Smith Reserve pavilion and – sports fields construction successfully Sports fields and pavilion completed, with the official opening construction and Yooralla and first match on 6 March 2015. integration Yooralla integration works completed and operational in March 2015.

Oak Park Aquatic Council endorsed the proposed Under a rate-capping environment, Centre redevelopment project scope in April 2015 to funding this large redevelopment progress the concept design will be challenging through the Detailed design and and planning permit application. annual capital works program. lodge planning permit In 2014–2015, a reserve was Design will continue through 2015–2016, established for the redevelopment and the planning permit application of Oak Park Aquatic Centre to enable will be submitted in November 2015 construction. We have $5.27 million and design and documentation in this reserve for allocation from tender complete by 30 June 2016. 2014–2015 results.

Merlynston Creek Reserve Park and playground works – complete on 30 June 2015. Playground works Signage in Sports All advertising signage audited and Issues recruiting for this position Grounds Policy database completed in August 2014. have resulted in delays. Sponsor confirmed project scope and Draft Signage in Sports The draft signage policy and program and a consultant appointed in Grounds Policy consultant report, followed by May 2015. Questionnaire issued to all consultation on the policy with Incorporate design principles relevant clubs on 3 July with responses the clubs and community, will into all projects in public and due by 17 July 2015. occur in October with a view to private spaces Urban Design Protocol reviewed a December report to Council. to understand its applicability and distributed to other cross organisational projects and units.

Gowanbrae Multipurpose Courts Construction completed and – courts launched on 27 June 2015. Commence construction, complete landscaping and construct car park ANNUAL REPORT 53 2014 – 2015

Major initiative Achievements Challenges

Brunswick Cycling Club Pavilion Design completed and construction – commenced in 2014–2015 as Scope, design and construction scheduled. Construction is progressing well, with completion forecast for November 2016.

Outcome 2 – Moreland community members feel connected to others and have access to the necessary services (Connected)

Barry Beckett Children’s Centre Stage one construction works – completed in May 2015. The remaining Construction stages 2 to 5 are underway and progressing well with completion forecast for September 2015. Anne Sgro Children’s Centre – Construction commencement delayed due to planning Construction complications and objection consideration. Planning permit to be issued in July 2015. Project to be re-tendered in 2015–2016 due to delays and changes to project scope.

Outcome 3 – Moreland community is educated

Digital Strategy and Plan In comparison with the same quarter – last year there has been a 164.55% Implement Moreland’s Digital increase in reach, a 139.49% increase Strategy and Plan through a in page impression, a 278.46 % increase revised website(s) and Social in engagement and a 60% increase Media Strategy in page Likes. Moreland Likes stand at 5,947 (7 July 2015). New website went live 13 May 2015.

Outcome 4 – Moreland community feels safe and is safe

Street lighting in Brunswick Ironbark undertook audits in – November and December 2014. Audit and bulk changeover of lights 2,850 lights installed by the end of June. CCTV project New CCTV solution implemented – and fully operational in 2014. Jewell of Brunswick Wilson Avenue public space – public safety project construction completed end June 2015 and officially opened on 2 August 2015. Construction of Wilson Avenue public space Pool safety program 102 property audits with 71 Received executive endorsement swimming pools made compliant for new Swimming Pool Safety Continue to implement program within the reporting period, Barriers Policy in November involving education and regulation achieving the revised targets. 2014, which sets a program enforcement relating to swimming to proactively address this risk. pools for residential properties OUR PERFORMANCE 54 Moreland City Council

MORELAND’S PEOPLE (CONT’D)

Major initiative Achievements Challenges

Outcome 5 – Moreland community has access to affordable housing

2014–2018 Moreland Affordable Developed draft options paper and – Housing Strategy completed initial consultation with internal stakeholders and the Housing Implement, with a focus on: Advisory Committee. Revising options »» Developing a model for based on feedback. an affordable housing trust Ongoing engagement with housing »» Advocating for social and stakeholders. affordable housing to government Including New Population Growth and and private sector, and 2014 Community Indicators data. »» Monitoring research and trends.

Outcome 6 – The human rights of Moreland’s diverse community are upheld

Family violence prevention Participate in sector-wide campaigns Submission made to Royal and endorse specific advocacy actions Commission on Family Violence. Advocate for state government in White Paper on family violence. Family Violence forum held with a investment to address the gaps focus on early years in the northern identified by the Moreland Community metropolitan region. Safety Leadership Group

MORELAND’S PLACES AND SPACES

Major initiative Achievements Challenges

Outcome 7 – People have access to local places, spaces and public transport (Accessible)

Coburg Town Hall Completed Stage 1 of Coburg – Improvement program Town Hall Improvement works. Implement Stage 1 Public toilet program Demolished old toilets and – constructed new public toilet Upgrade Campbell facilities at Campbell Reserve. Reserve public toilet Fleming Park master plan Preliminary landscaping works have – been completed and the existing Begin design and works in line pavilion has been demolished. with master plan and commence Master plan implementation open space renewal works will continue in 2015–2016. Northern Golf Club Course Property settled at the end – of September, as planned. Final payment for the purchase site in accordance with the agreement Glenroy Streetscape – Awarded construction contract for master plan delivery in 2015–2016. Delay due to changes to improve original design Deliver Pascoe Vale Road and align budget with Council’s Stage 2 construction 5-year capital program. ANNUAL REPORT 55 2014 – 2015

Major initiative Achievements Challenges

Morgan Court project – Project scheduled for completion in August 2015. Late supply of Stage 1 and 2 construction complete materials delayed the project. within budget and timeframe Communications and – Meetings with federal government advocacy strategy have not been held. Develop and implement strategy to State Government program progress Regional Grade Separation to address grade separation Initiative findings across Victoria does not list Coburg and Glenroy as priorities.

Outcome 8 – People can access a variety of mobility options (Moving around)

Bike strategy and Completed projects to a The budget included a list of other bike projects value of $6.75 per resident. projects totalling $1,465,000, which equates to $9.38 per head. Implement as per Capital Works Program: capital expenditure (CAPEX) funding to be set at $5 per resident minimum of the Moreland population, and implement CAPEX program as adopted or amended through the year Brunswick Integrated Ongoing works occurred in Brunswick, One project delayed due to wet Transport Strategy including works to support state weather in June, completed in government Route 96 project. first week of July. Implement Percentage CAPEX actions Pedestrian Strategy and 11 of 12 projects completed One project will be completed after pedestrian improvement projects before 30 June 2015. 30 June 2015 due to delays in receiving approval from VicRoads. Implement as funded within the CAPEX program to DDA standards Parking Overstay Council endorsed Council report – Detection Systems (PODS) at November 2014 meeting. Investigate feasibility of iPhone application for residents to determine parking availability

Outcome 9 – Attractive and well-maintained built environment, streetscapes and landscapes (Looking better)

Moreland Street Commenced project to plant 5,000 – Landscape Strategy trees in the 2015 calendar year. 2,500 trees were planted by 30 June 2015. Implement strategy Moreland Planning Scheme – Panel report (received in June 2015) Measure achieved, however Amendment C142 recommended adoption with changes Council-endorsed changes (adoption report prepared for August impacted timeline and required Complete Council-generated 2015 Council meeting). a further public notice. Amendment C142 Moreland Higher Density Design Code, including further refine policy following submissions, re-exhibit and complete panel hearing OUR PERFORMANCE 56 Moreland City Council

MORELAND’S PLACES AND SPACES (CONT’D)

Major initiative Achievements Challenges

Outcome 10 – Cultural and artistic focus of the City of Moreland continues to thrive

Moreland Arts and All major funded actions achieved, – Culture Strategy including: supporting establishment and activation of Creative Spaces in Delivery of major funded municipality; scoping potential Arts 2014–2015 actions identified Incubator; public art commissions, within the Moreland Arts developing Event Permit Guidelines and Culture Strategy (to be endorsed by MEG); implementing Community Cultural Development Framework; improving community engagement at events such as Glenroy Festival and Fawkner Festa; developing professional development initiatives for artists in municipality; and implementating the Audience Development Plan at the Counihan Gallery In Brunswick Public art MoreArt launched on 26 October 2014; – pubic art commission in Coburg in Present MoreArt annual partnership with Coburg Place Manager public art show and develop in May 2015; and first stage of public art public art commission project commission in collaboration with Youth Services and Glenroy Place Manager in June 2015; audit of current public art collection completed for maintenance of existing works and presented at June 2015 Moreland Arts Board

Outcome 11 – The historical places of the City of Moreland continue to be enhanced (Preserving history)

Bluestone Strategy Completed construction of the trial bluestone laneway projects. Project Draft and implement as monitoring commenced and will be per 11 September 2013 reported to the Bluestone Community Council resolution Working Group to analyse and establish a preferred construction method for future reconstruction projects.

Draft updated policy following the 12-month monitoring process of the trial bluestone laneway projects. The monitoring assesses the feasibility and viability of construction methods that have been trialled for projects completed during 2014–2015. It is anticipated that a revised draft policy will be presented to Council by the end of 2015, following analysis of the trial projects.

Presented an interim report to Council It is anticipated that the trial period in the second quarter of 2015–2016 will extend for at least 12 months analysing the findings of the first before a recommendation is 6 months of monitoring of the proposed to properly ascertain trial bluestone laneway projects the feasibility and viability of undertaken during 2014–2015. the each of the bluestone reconstruction methods trialled. ANNUAL REPORT 57 2014 – 2015

ENVIRONMENTALLY SUSTAINABLE MORELAND

Major initiative Achievements Challenges

Outcome 12 – Reduction of non-renewable energy, fresh water usage and carbon emissions

Moreland Open Space Bush Reserve opened to the – Strategy – Bush Reserve public on 13 June 2015 with around 200 people attending. Complete Bush Reserve redevelopment to new community park

Open space shared – Open Space Planer commenced use agreements 9 June. Item carried forward to 2015–2016. Complete shared use agreement policy, identify potential locations, assessment for shared use Land use anomalies – Open Space Planer commenced 9 June. Reviewing draft list of land use Develop plan to resolve anomalies Item carried forward to land use anomalies 2015–2016.

Carbon Management Strategy Achievements reported to 10 June – 2015 Council meeting, delivered all Deliver stage 4 of the energy solar PV projects including: Coburg efficiency program targeting Civic Centre; Oxygen Youth Centre; Council’s highest electricity Campbell Turnbull Library; Hadfield consumption for PV systems MCHC; and Coburg Leisure Centre. Lighting upgrade completed at Brunswick Town Hall. National Carbon Offset Council achieved carbon neutral – Standard and Accreditation certification via NCOS for 2013–2014. Achieve year 3 NCOS accreditation

Stormwater treatments Achievements reported to 10 June – 2015 Council meeting, including: Design and construct opportunities for large-scale WSUD streetscape upgrades infrastructure assessment; Wilson and implement community Avenue street trees designed to pilot project be passively irrigated; commenced community-integrated water management pilot project with Melbourne Water; launched Charles Mutton stormwater harvesting system in October 2014; and commenced passively irrigated street tree trial in Barrow Street, Brunswick. Water efficiency upgrades Achievements reported to 10 June – 2015 Council meeting, including Implement to key Council assets delivered water efficiency measures at: Shirley Robertson Children’s Centre; Everett Street Childcare Co-op; Tinning Street Child Care Co-op; and Volga Street Kindergarten and Maternal and Child Health Centre. Completed water audit for Coburg Leisure Centre. OUR PERFORMANCE 58 Moreland City Council

ENVIRONMENTALLY SUSTAINABLE MORELAND (CONT’D)

Major initiative Achievements Challenges

AG Gillon Reserve stormwater Achievements reported to 10 June – harvesting project 2015 Council meeting, including; community solar bulk buy promotion; Develop designs established ‘Green Precinct’ pilot in Lygon Street, Brunswick; established legal and administrative structure for Moreland Community Solar Cooperative; solar installations at schools (including Coburg North Primary School, Moreland Primary School, John Fawkner Secondary College and Brunswick South West Primary school); and held ZCE partner event in June 2015.

Outcome 13 – No actions in 2014–2015

Outcome 14 – Moreland community is environmentally aware CERES Five-year funding agreement is now – in place with CERES, which provides Provide support to CERES to deliver for ongoing support for capital a range of operating and capital projects, operations and continued project outlined in the Memorandum collaboration with Council officers. of Understand, including the Office of Living Victoria providing the funding, Water Sensitive Urban Design – catching water in different ways, such as water gardens – project delivery

Outcome 15 – The City of Moreland’s natural environment is preserved and enhanced

Natural resource programs Completed revegetation and restoration – contractor works. Developed cultural Continue revegetation and restoration interpretive signage. Completed small program along Edgars, Merri and fencing projects along creek corridors. Moonee Ponds creeks and remnant vegetation sites Edgars Creek Conservation Completed revegetation and restoration – and Development Plan contractor works. Completed path works north of Ronald Street bridge Undertake revegetation and and installed safety fencing. Completed restoration projects mulching works and ran Friends Group planting activities. Edgars and Merri creeks Completed final design – confluence wetland construction and tender documents. Progress on wetland project at the Edgars/Merri confluence Creek committees and Held scheduled planting days – friends of creek groups with good attendance numbers. Undertake revegetation and restoration projects with and for friends of creek groups ANNUAL REPORT 59 2014 – 2015

MORELAND’S ECONOMY

Major initiative Achievements Challenges

Outcome 16 – The City of Moreland has a growing local economy Moreland Industrial Council adopted draft MILS for – Land Strategy (MILS) consultation and resolved to commence Amendment C158 to Undertake expert economic analysis implement the strategy into the of supply and demand of industrial Moreland Planning Scheme by land to review, update and consult making changes to the Municipal on MILS Strategic Statement (as reported at 10 June 2015 Council meeting). Moreland Planning Scheme – Completed Amendment C157 – Amendment C157 exhibition in 2015. Council adopted the amendment in July 2015. Progress internally and externally generated Amendment C157 Gaming, Licensed Venues and Student Accommodation Planning Polices Moreland Planning scheme – Presented Amendment C134 to – Amendment C134 Council at its meeting on 8 July 2015. If adopted, this represents an important Complete Council-generated milestone in the strategic planning of Amendment C134 Brunswick the Brunswick Activity Centre. Major Activity Centre Structure Plan and further refine package, including mandatory heights, following submissions, re-exhibit and complete panel hearing Moreland Planning scheme – Lodged Amendment C123 – Amendment C123 documentation with Minister for Planning for approval in Complete Council-generated December 2014. Amendment C123 Coburg Principal Activity Centre Structure Plan Moreland Planning Scheme – Council adopted Amendment C133 – Amendment C133 at its meeting on 11 February 2015. Council endorsed changes to the Complete Council-generated amendment, which necessitated Amendment C133 Developer further public notice. Contributions Plan Bonwick, Gaffney/Cumberland, – To be re-visited once Neighbourhood Grantham/Union, and West Centre assessments are complete Street shopping centres and prioritised centres decided. Deliver place-making and business development initiatives in nominated SSRP areas Moreland Economic DYOB ongoing. Next survey due – Development Strategy 2011–16 November 2016. Delivered green light cross regional program. Continue to implement and deliver More Local program, business Re-visit when the formal communication confidence survey, Greening Growth of the long-term lease for BBI is received. program, Incubator-Lite Network, Develop discussion of long-term and Business Retention and relevance of Incubator-Lite program. Expansion program Develop and deliver Invest Moreland Network event and activity on 24 September 2015. OUR PERFORMANCE 60 Moreland City Council

MORELAND’S ECONOMY (CONT’D)

Major initiative Achievements Challenges

The Coburg Initiative – Colours – Extended Memorandum of of Coburg and Coburg 2020 Understanding to enable review of business case to revise project Continue to implement Colours costs and development options. of Coburg and Coburg 2020 and continue to progress EOI for development partner on hold pending review of project Development Cluster 1 – Central costs and business case. Coburg Development business case and negotiations and execute Heads of Agreement with Council

The Coburg Initiative – hospital Currently finalising Heads Continuing to work with preferred site, Pentridge Boulevard, of Agreement and Contract partner for the delivery of this major Coburg Childcare Centre documentation. catalyst project for Coburg. and Urquhart Street works Pentridge Boulevard construction Continue scoping and development complete, providing a dual carriageway for hospital site, complete Pentridge between Bell Street and Sydney Road. Boulevard, Coburg Childcare Centre Received construction tender relocation, Urquhart Street works responses for the construction and associated car parking, finalise of the new Coburg Childcare land purchases Centre, with recommendation to go to Council in September 2015.

Brunswick Place Framework – Document review underway, however awaiting decision Prepare and implement a community on Amendment C134. engagement strategy to inform the finalisation of the Brunswick Place Framework with a view for Council to endorse and adopt

Council Structure Plans The 2014–2015 Brunswick, – Coburg and Glenroy Activity Centre Implement all Council Structure annual reports are scheduled for Plans through implementing a place October 2015 Council meeting. management approach; provide Annual Place Management Reports and undertake place activation initiatives in Coburg, Brunswick and Glenroy Activity Centres as part of ongoing community engagement ANNUAL REPORT 61 2014 – 2015

CIVIC LEADERSHIP

Major initiative Achievements Challenges

Outcome 17 – Partnerships are used to deliver community outcomes

Moreland 2025 – Further work has been completed Community Vision on this project post deferral of the plan in December 2014. A MEG Develop partnerships with community brief was scheduled for end April sector to deliver key partnership and a Councillor briefing for 11 initiatives through adoption and May, with a view to request Council implementation of the Moreland endorsement of the Vision in August 2025 Community Vision 2015. The ongoing challenge being how to utilise the Community Vision to build an advocacy program for the community.

Outcome 18 – Moreland community has access to information, opportunities to participate in decision making and access to decision makers

Implement Engagement Strategy A review of Council advisory – committees undertaken to align with the Community Vision and to support community engagement and participation through various avenues.

Outcome 19 – Moreland City Council is financially responsible taking account of current and future needs

Asset management Implementing the Assetic System and improving processes over the last 12 Implement the Asset months is reflected in an increase in Management system core competency of approximately 11% based on the NAMAF self- assessment process completed in May 2015.

Outcome 20 – Moreland community has access to responsive services Digital and social media strategies Measured organisational mindset change by the number of business Ingrain strategies into staff-thinking units requesting digital content for and use revised website(s) and social various platforms. media to their full capacity

Customer Service Strategy Completed and established benchmark Telephony system implementation for the first cycle of Voice of the deferred from April–May 2015 Implement actions meeting timeframes Customer Survey achieved. to August–September 2015. as per 2014–2015 strategy action plan Completed tender and contract Four rounds of the Phone sign off. Configuration progressed – Fox survey completed. waiting for switch-over, scheduled Commenced implementation to take place 28 August 2015. of phone message CRS in After Call Survey will commence November 2014. following implementation of the CRS close the loop, auto email telephony system in August and notification response and keeping September 2015. customers informed – technical complications encountered in testing now complete, pilot in progress. Pascoe Vale

CIVIC LEADERSHIP (CONT’D)

Major initiative Achievements Challenges

Mobile online self-service The new Council public website, Insufficient business analysis capabilities including the new mobile capability, resources to complete the task. went live in May 2015. Prioritised effort into the self-service Deploy mobile online self-service online animal registrations. capabilities as per 2014–2015 Both internal mobile CRS and action plan external mobile app were New payment gateway tender implemented June 2015. and contract has delayed the Purchase and deploy an integrated rollout of the kiosks. mobile front end application to the User-friendly mobile front-end public for key services provided via expected to be available with LIS (Pathway) next version upgrade. Purchase and deploy an integrated Initial scoping and configuration mobile front end application for the has commenced. library catalogue (Libero) Move a further 25 key paper forms to electronic format accessible via mobile devices Deploy a further two self service kiosks at Council sites. Implement self-service online animal registrations.

Information Technology Strategy Council approved tender Signoff for the IT strategy recommendations and contract is still be completed. Proportion of review is expected to be finalised in recommendations implemented The implementation of a new April 2015 and implemented cloud infrastructure contract Number of new or upgraded in May/June 2015 for first has delayed the completion non-core applications on laaS key applications. of the proof of concept. Number of PCs operating Awaiting approval for the recruitment as virtual desktops of additional resources. Availability of new resources as per 2014–2015 strategy action plan ANNUAL REPORT 63 2014 – 2015

PERFORMANCE STATEMENT

Basis of preparation The performance statement Hadfield, Fawkner, Glenroy, Oak presents the actual results for the Park and Gowanbrae. Small sections We are required to prepare and current year and for the prescribed Fitzroy North and Tullamarine are also include a performance statement financial performance indicators and part of Moreland. in our annual report. The performance measures, the results forecast by our In June 2014, our estimated statement includes the results of strategic resource plan. The Local resident population was 163,488. the prescribed sustainable capacity, Government (Planning and Reporting) service performance and financial Regulations 2014 require explanation Between 2011 and 2036 it is performance indicators and measures, of any material variations in the predicted we will see unprecedented together with a description of the results contained in the performance population growth. The municipality is municipal district and an explanation statement. We have adopted going to grow by 39 per cent – from of material variations in the results. materiality thresholds relevant a population of 154,245 in 2011 to This statement has been prepared to each indicator and measure. 214,320 in 2036. The majority of to meet the requirements of the Explanations are not provided for the growth will occur by 2021 with Local Government Act 1989 and variations below the materiality the Brunswick Statistical Local Area Local Government (Planning and thresholds unless the variance is predicted to become Moreland’s Reporting) Regulations 2014. considered to be material because most populous area, overtaking of its nature. the Coburg Statistical Local Area. The Victorian Government developed the new performance reporting The forecast figures in the Our city is a highly culturally and framework to ensure that all Councils performance statement were adopted linguistically diverse municipality, with are measuring and reporting on their in our Strategic Resource Plan on residents speaking approximately 140 performance in a consistent way. 28 June 2015, which forms part different languages at home. In 2011, The framework became mandatory of the Council Plan. The Strategic more than one-third of residents from 1 July 2014 and all Councils Resource Plan includes estimates were born overseas. Of those need to report results as part of their based on key assumptions about residents, 87 per cent were born in 2014–2015 annual report at the end the future that were relevant at the non-English-speaking countries. The of September 2015. As this is the first time of adoption and are aimed at main countries of birth of residents, year for reporting in this manner, there achieving sustainability over the apart from Australia, represent the is no trend data to compare to. We in long term. Detailed information traditional migrant groups from intend to compare the previous year’s on the actual financial results is Europe, including Italy, Greece and results and also highlight any material contained in the General Purpose the United Kingdom, along with India, variations in future years. By 2017– Financial Statements. The Strategic Lebanon, China and New Zealand.13 Resource Plan can be obtained 2018 we will be comparing our results For many years our businesses by contacting Council. to the previous three years. were largely industrial and were the Where applicable, the results in municipality’s largest employer. Health the performance statement have Description of care and social assistance businesses been prepared on accounting bases our municipality now employ the largest number of people, with manufacturing falling into consistent with those reported in the The City of Moreland is located second place and retail trade coming Financial Statements. The other results between 4 and 14 kilometres north in third. are based on information drawn from of central Melbourne and covers Council information systems or from the inner and mid-northern suburbs third parties, for example, Australian 13 2011 Census of Population and Housing, of Brunswick, Brunswick East, Australian Bureau of Statistics Bureau of Statistics. Brunswick West, Pascoe Vale, Pascoe Vale South, Coburg, Coburg North, OUR PERFORMANCE 64 Moreland City Council

SUSTAINABLE CAPACITY INDICATORS For the year ended 30 June 2015

Indicator / Measure Results 2015

Population Expenses per head of municipal population $915.47 (Total expenses / Municipal population) Infrastructure per head of municipal population $3,908.84 (Value of infrastructure / Municipal population) Population density per length of road 255.49 (Municipal population / Kilometres of local roads)

Own-source revenue Own-source revenue per head of municipal population $904.42 (Own-source revenue / Municipal population)

Recurrent grants Recurrent grants per head of municipal population $121.53 (Recurrent grants / Municipal population)

Disadvantage Relative socioeconomic disadvantage 6.00 (Index of relative socioeconomic disadvantage by decile)

Definitions current liabilities has the recurrent grant means a grant same meaning as in the AAS other than a non-recurrent grant adjusted underlying revenue means total income other than: non-current assets means all residential rates means revenue from assets other than current assets general rates, municipal charges, a) non-recurrent grants used to service rates and service charges non-current liabilities means all fund capital expenditure, and levied on residential properties liabilities other than current liabilities b) non-monetary asset restricted cash means cash and non-recurrent grant means a grant contributions, and cash equivalents, within the meaning obtained on the condition that it be of the AAS, that are not available c) contributions to fund capital expended in a specified manner for use other than for a purpose for expenditure from sources and is not expected to be received which it is restricted, and includes other than those referred again during the period covered by cash to be used to fund capital to in paragraphs (a) and (b) a Council’s Strategic Resource Plan works expenditure from the previous adjusted underlying surplus (or deficit) own-source revenue means financial year means adjusted underlying revenue adjusted underlying revenue other unrestricted cash means all cash less total expenditure than revenue that is not under and cash equivalents other than asset renewal expenditure means the control of Council (including restricted cash expenditure on an existing asset government grants or on replacing an existing asset population means the resident that returns the service capability population estimated by Council of the asset to its original capability rate revenue means revenue from current assets has the same general rates, municipal charges, meaning as in the AAS service rates and service charges ANNUAL REPORT 65 2014 – 2015

SERVICE PERFORMANCE INDICATORS For the year ended 30 June 2015

Service / Indicator / Measure Results 2015

Aquatic facilities Utilisation 5.39 Utilisation of aquatic facilities (Number of visits to aquatic facilities / Municipal population) Animal management Health and safety 11.00 Animal management prosecutions (Number of successful animal management prosecutions) Food safety Health and safety Critical and major non-compliance outcome notifications 86.71% (Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises followed up / Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises) x100 Governance Satisfaction Satisfaction with Council decisions 54.00 (Community satisfaction rating out of 100 with how Council has performed in making decisions in the interest of the community) Home and community care (HACC) Participation Participation in HACC service 24.86% (Number of people that received a HACC service / Municipal target population for HACC services) x100 Participation 24.02% Participation in HACC service by CALD people (Number of CALD people who receive a HACC service / Municipal target population in relation to CALD people for HACC services) x100 Libraries Participation Active library members 15.33% (Number of active library members / Municipal population) x100 Maternal and Child Health (MCH) Participation Participation in the MCH service 75.13% (Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service) x100 OUR PERFORMANCE 66 Moreland City Council

SERVICE PERFORMANCE INDICATORS (CONT’D)

Service / Indicator / Measure Results 2015

Maternal and Child Health (MCH) Participation Participation in the MCH service by Aboriginal children 66.96% (Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service) x100 Roads Satisfaction Satisfaction with sealed local roads 58.00 (Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads) Statutory planning Decision making Council planning decisions upheld at VCAT 55.26% (Number of VCAT decisions that did not set aside Council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications) x100 Waste collection Waste diversion Kerbside collection waste diverted from landfill 45.51% (Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins) x100

Definitions class 2 food premises means food HACC program means the Home premises, within the meaning of and Community Care Program Aboriginal child means a child the Food Act 1984, that have been established under the agreement who is an Aboriginal person declared as class 2 food premises entered into for the purpose of the Aboriginal person has the same under section 19C of that Act Home and Community Care Act 1985 of the Commonwealth meaning as in the Aboriginal Community Care Common Standards Heritage Act 2006 means the Community Care HACC service means home help, active library member means Common Standards for the delivery personal care or community respite a member of a library who has of HACC services, published from provided under the HACC program time to time by the Commonwealth borrowed a book from the library local road means a sealed or annual report means an annual report critical non-compliance outcome unsealed road for which Council is prepared by a Council under sections notification means a notification the responsible road authority under 131, 132 and 133 of the Local received by Council under section the Road Management Act 2004 19N(3) or (4) of the Food Act 1984, Government Act 1989 major non-compliance outcome or advice given to Council by an class 1 food premises means food notification means a notification authorised officer under that Act, of premises, within the meaning of received by a council under section a deficiency that poses an immediate the Food Act 1984, that have been 19N(3) or (4) of the Food Act 1984, serious threat to public health declared as class 1 food premises or advice given to council by an under section 19C of that Act food premises has the same authorised officer under that Act, meaning as in the Food Act 1984 of a deficiency that does not pose ANNUAL REPORT 67 2014 – 2015

an immediate serious threat to public population means the resident WorkSafe reportable aquatic facility health but may do so if no remedial population estimated by Council safety incident means an incident action is taken relating to a Council aquatic facility target population has the same that is required to be notified to the MCH means the Maternal and Child meaning as in the agreement entered Victorian WorkCover Authority under Health Service provided by into for the purposes of the Home Part 5 of the Occupational Health a Council to support the health and Community Care Act 1985 and Safety Act 2004 and development of children within of the Commonwealth the municipality from birth until school age

FINANCIAL PERFORMANCE INDICATORS

Dimension / Results Forecasts Material variations Indicator / Measure

2015 2016 2017 2018 2019

Efficiency Revenue level Average residential rate $1,443.63 $1,672.37 $1,718.94 $1,762.30 $1,806.78 High supplementary per residential property rates in 2014–2015 in assessment anticipation of the new residential zones. (Residential rate revenue / Number of residential property assessments)

Expenditure level Expenses per property $2,028.75 $2,106.89 $2,184.42 $2,228.20 $2,268.09 Non-material assessment variations. (Total expenses / Number of property assessments)

Workforce turnover Resignations 19.41% 0.00% 0.00% 0.00% 0.00% The current strategic and terminations resource plan projects compared to zero increase in EFT and average staff there are no workforce projections on staff (Number of permanent turnover available. staff resignations and terminations / Average Note – Council was number of permanent unable to provide a staff for the financial year) report of all permanent x100 staff as of 1 July 2014. OUR PERFORMANCE 68 Moreland City Council

FINANCIAL PERFORMANCE INDICATORS (CONT’D)

Dimension / Results Forecasts Material variations Indicator / Measure

2015 2016 2017 2018 2019

Liquidity Working capital Current assets 137.84% 174.69% 179.50% 173.63% 172.37% 2014–2015 data is impacted by compared to the Local Government Funding current liabilities Vehicle temporary loans (expires 30 June 2016), even though there is no intention to pay off all by (Current assets / then. The second issue of LGFV Current liabilities) x100 bond will resolve this issue.

Unrestricted cash Unrestricted cash 42.10% 83.14% 85.12% 84.49% 85.11% Future year’s data does compared to not include Capex current liabilities carry-forwards as we do not budget (Unrestricted cash / for carry-forwards. Current liabilities) x100

Obligations Asset renewal Asset renewal compared 72.77% 66.91% 80.09% 69.61% 85.08% Non-material variations. to depreciation (Asset renewal expense / Asset depreciation) x100

Loans and borrowings Loans and borrowings 40.78% 39.06% 36.32% 33.85% 31.35% No new borrowings planned in the compared to rates next 5 years. (Interest bearing loans and borrowings / Rate revenue) x100

Loans and borrowings 22.76% 3.81% 3.51% 3.39% 3.22% 2014–2015 data was distorted by repayments compared the refinancing of two floating loan to rates parcels, with both cash inflow and outflow showing large numbers. (Interest and principal repayments on interest bearing loans and borrowings / Rate revenue) x100 ANNUAL REPORT 69 2014 – 2015

Dimension / Results Forecasts Material variations Indicator / Measure

2015 2016 2017 2018 2019

Indebtedness Non-current liabilities 25.83% 33.29% 30.94% 28.85% 25.59% As L1, 2014–2015 data was compared to own distorted due to the LGFV source revenue temporary loans expiring 30 June 2016. In reality this (Non-current liabilities loan parcel will be re-financed / Own source revenue) during 2015–2016 with the x100 second issuance of LGFV bond.

Operating position Adjusted underlying result Adjusted underlying 11.15% 6.46% 5.49% 5.79% 6.43% 2014–2015 data was surplus (or deficit) unusually high due to a number of one-off factors: (Adjusted underlying surplus (deficit)/ »» 50% of 2015–2016 Financial Adjusted underlying Assistance Grant was received revenue) x100 in June 2015 ($3m) »» Open space contribution was unusually high in anticipation of the new residential zone under which development will be tightened up ($7.3m), and »» Once off special charge on Pentridge Boulevard construction ($1.3m).

Stability Rates concentration Rates compared to 71.87% 77.25% 77.38% 77.53% 77.56% 2014–2015 non-rates revenue adjusted underlying includes a number of one-off revenue items as per OP1. Furthermore, long term financial plan data (Rate revenue / (future years) does not include Adjusted underlying items like fair value adjustment for revenue) x100 investment properties, and so on. OUR PERFORMANCE 70 Moreland City Council

FINANCIAL PERFORMANCE INDICATORS (CONT’D)

Dimension / Results Forecasts Material variations Indicator / Measure

2015 2016 2017 2018 2019

Stability Rates effort Rates compared 0.30% 0.32% 0.33% 0.34% 0.35% Non-material to property values variations. (Rate revenue / Capital improved value of rateable properties in the municipality) x100

Definitions own-source revenue means adjusted underlying revenue other adjusted underlying revenue than revenue that is not under means total income other than: the control of Council (including a) non-recurrent grants used to government grants) fund capital expenditure, and relative socioeconomic disadvantage, b) non-monetary asset in relation to a municipality, means the contributions, and relative socioeconomic disadvantage, expressed as a decile for the relevant c) contributions to fund capital financial year, of the area in which the expenditure from sources other municipality is located according to than those referred to in the Index of Relative Socioeconomic paragraphs (a) and (b) Disadvantage (Catalogue Number infrastructure means non-current 2033.0.55.001) of SEIFA property, plant and equipment SEIFA means the Socioeconomic excluding land Indexes for Areas published from local road means a sealed or time to time by the Australian unsealed road for which the Bureau of Statistics on its website Council is the responsible unrestricted cash means all cash road authority under the and cash equivalents other than Road Management Act 2004 restricted cash population means the resident population estimated by Council ANNUAL REPORT 71 2014 – 2015

CERTIFICATION OF THE PERFORMANCE STATEMENT OUR PERFORMANCE 72 Moreland City Council

INDEPENDENT AUDITOR’S REPORT FOR PERFORMANCE STATEMENT ANNUAL REPORT 73 2014 – 2015

INDEPENDENT AUDITOR’S REPORT FOR PERFORMANCE STATEMENT VINCE

I’ve always done hard work. I worked for the railways. I put in stormwater pipes. I worked at a quarry for Coburg City Council. I’ve had 12 or 13 operations now. Arthritis in my hands. It’s okay. You have to ... I like joking. You have to be laughing.

OUR PERFORMANCE 76 Moreland City Council

VICTORIAN GOVERNMENT PERFORMANCE INDICATORS

Report of operations SERVICE PERFORMANCE INDICATORS

Service / Indicator / Measure Results 2015

Aquatic facilities Service standard Health inspections of aquatic facilities 0.50 (Number of authorised officer inspections of Council aquatic facilities / Number of Council aquatic facilities)

Health and Safety Reportable safety incidents at aquatic facilities 8.00 (Number of WorkSafe reportable aquatic facility safety incidents)

Service cost Cost of indoor aquatic facilities -$0.55 (Direct cost of indoor aquatic facilities less income received / Number of visits to indoor aquatic facilities)

Service cost Cost of outdoor aquatic facilities $8.69 (Direct cost of outdoor aquatic facilities less income received / Number of visits to outdoor aquatic facilities)

Utilisation Utilisation of aquatic facilities 5.39 (Number of visits to aquatic facilities / Municipal population)

Animal management Service standard Animals reclaimed 37.97% (Number of animals reclaimed / Number of animals collected) x100 ANNUAL REPORT 77 2014 – 2015

Service / Indicator / Measure Results 2015

Service cost Cost of animal management service $61.91 (Direct cost of the animal management service / Number of registered animals)

Health and safety Animal management prosecutions 11.00 (Number of successful animal management prosecutions)

Food safety Service standard Food safety assessments 87.88% (Number of registered class 1 food premises and class 2 food premises that receive an annual food safety assessment in accordance with Food Act 1984 / Number of registered class 1 food premises and class 2 food premises that require an annual food safety assessment in accordance with Food Act 1984) x100

Service cost Cost of food safety service $605.36 (Direct cost of the food safety service / Number of food premises registered or notified in accordance with the Food Act 1984)

Health and safety Critical and major non-compliance outcome notifications 86.71% (Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises followed up / Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises) x100

Governance Transparency Council decisions made at meetings closed to the public 10.00% (Number of Council resolutions made at ordinary or special meetings of Council, or at meetings of a special committee consisting only of Councillors, closed to the public / Number of Council resolutions made at ordinary or special meetings of Council or at meetings of a special committee consisting only of Councillors ) x100

Consultation and engagement Satisfaction with community consultation and engagement 54.00 Community satisfaction rating out of 100 with how Council has performed on community consultation and engagement OUR PERFORMANCE 78 Moreland City Council

SERVICE PERFORMANCE INDICATORS (CONT’D)

Service / Indicator / Measure Results 2015

Attendance Councillor attendance at Council meetings 82.73% (The sum of the number of Councillors who attended each ordinary and special Council meeting / (Number of ordinary and special Council meetings) × (Number of Councillors elected at the last Council general election)) x100

Service cost Cost of governance (Direct cost of the governance service / Number of $44,574.28 Councillors elected at the last Council general election)

Satisfaction Satisfaction with Council decisions 54.00 (Community satisfaction rating out of 100 with how Council has performed in making decisions in the interest of the community)

Home and Community Care (HACC) Service standard Compliance with Community Care Common Standards 72.22% (Number of Community Care Common Standards expected outcomes met / Number of expected outcomes under the Community Care Common Standards) x100

Participation Participation in HACC service 24.86% (Number of people that received a HACC service / Municipal target population for HACC services) x100

Participation Participation in HACC service by CALD people 24.02% (Number of CALD people who receive a HACC service / Municipal target population in relation to CALD people for HACC services) x100

Libraries Utilisation Library collection usage 4.88 (Number of library collection item loans / Number of library collection items)

Resource standard Standard of library collection 78.71% (Number of library collection items purchased in the last 5 years / Number of library collection items) x100 ANNUAL REPORT 79 2014 – 2015

Service / Indicator / Measure Results 2015

Service cost Cost of library service $6.97 (Direct cost of the library service / Number of visits)

Participation Active library members 15.33% (Number of active library members / Municipal population) x100

Maternal and Child Health (MCH) Satisfaction Participation in first MCH home visit 105.47% (Number of first MCH home visits / Number of birth notifications received) x100

Service standard Infant enrolments in the MCH service 100.56% (Number of infants enrolled in the MCH service (from birth notifications received) / Number of birth notifications received) x100

Participation Participation in the MCH service 75.13% (Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service) x100

Participation Participation in the MCH service by Aboriginal children 66.96% (Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service) x100

Roads Satisfaction of use Sealed local road requests 96.62 (Number of sealed local road requests / Kilometres of sealed local roads ) x100

Condition Sealed local roads below the intervention level 96.14% (Number of kilometres of sealed local roads below the renewal intervention level set by Council / Kilometres of sealed local roads) x100

Service cost Cost of sealed local road reconstruction $198.14 (Direct cost of sealed local road reconstruction / Square metres of sealed local roads reconstructed) OUR PERFORMANCE 80 Moreland City Council

SERVICE PERFORMANCE INDICATORS (CONT’D)

Service / Indicator / Measure Results 2015

Service cost Cost of sealed local road resealing $21.43 (Direct cost of sealed local road resealing / Square metres of sealed local roads resealed)

Satisfaction Satisfaction with sealed local roads 58.00 (Community satisfaction rating out of 100 with how council has performed on the condition of sealed local roads)

Statutory planning Timeliness Time taken to decide planning applications 99.00 (The median number of days between receipt of a planning application and a decision on the application)

Service standard Planning applications decided within 60 days 58.99% (Number of planning application decisions made within 60 days / Number of planning application decisions made) x100

Service cost Cost of statutory planning service $2,375.83 (Direct cost of the statutory planning service / Number of planning applications received)

Decision making Council planning decisions upheld at VCAT 55.26% (Number of VCAT decisions that did not set aside council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications) x100

Waste collection Satisfaction Kerbside bin collection requests 252.36 (Number of kerbside garbage and recycling bin collection requests / Number of kerbside bin collection households) x1000

Service standard Kerbside collection bins missed 13.24 (Number of kerbside garbage and recycling collection bins missed / Number of scheduled kerbside garbage and recycling collection bin lifts) x10,000 ANNUAL REPORT 81 2014 – 2015

Service / Indicator / Measure Results 2015

Service cost Cost of kerbside garbage bin collection service $80.27 (Direct cost of the kerbside garbage bin collection service / Number of kerbside garbage collection bins)

Service cost Cost of kerbside recyclables collection service $57.93 (Direct cost of the kerbside recyclables bin collection service / Number of kerbside recyclables collection bins)

Waste diversion Kerbside collection waste diverted from landfill 45.51% (Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins) x100

Oxygen Youth Space OUR PERFORMANCE 82 Moreland City Council

GOVERNANCE AND MANAGEMENT CHECKLIST

The following are the results of Council’s assessment against the governance and management checklist.

Governance and management item Required Achieved

Community Engagement Policy (outlining Current policy in operation 21 September 2012 Council’s commitment to engaging with the community on matters of public interest) Community Engagement Guidelines Current guidelines in operation 21 September 2012 (to assist staff to determine when and how to engage with the community) Strategic Resource Plan (under section Plan adopted in accordance 22 June 2015 126 of the Local Government Act 1989 with section 126 of the Act (the Act) outlining the financial and non-financial resources required for at least the next 4 financial years) Annual budget (under section 130 of the Budget adopted in accordance 22 June 2015 Act setting out the services to be provided with section 130 of the Act and initiatives to be undertaken over the next 12 months and the funding and other resources required) Asset management plans (set out the Current plans in operation Existing plans are outdated and asset maintenance and renewal needs under review. Expected completion for key infrastructure asset classes for and adoption of Open Space at least the next 10 years) and Road Infrastructure Asset Management Plans due in 2015– 2016. Drainage and Buildings and Facilities in 2016–2017. Rating Strategy (setting out Council’s Current strategy in operation 28 April 2015 rating structure to levy rates and charges) Risk Policy (outlining Council’s Current policy in operation 23 August 2011 commitment and approach to minimising the risks to our operations) Fraud Policy (outlining Council’s Current policy in operation 23 July 2013 commitment and approach to minimising the risk of fraud) Municipal Emergency Management Prepared and maintained in 10 July 2013 Plan (under section 20 of Emergency accordance with section 20 Management Act 1986 for emergency of Emergency Management prevention, response and recovery) Act 1986 ANNUAL REPORT 83 2014 – 2015

Governance and management item Required Achieved

Procurement Policy (under section Prepared and approved in 10 June 2015 186A of Local Government Act 1989 accordance with section 186A outlining the matters, practices and of Local Government Act procedures that apply to all purchases of goods, services and works) Business Continuity Plan (setting out Current plan in operation 24 July 2015 actions to ensure that key services continue to operate in the event of a disaster) Disaster Recovery Plan (setting out the Current plan in operation 19 February 2009 actions to recover and restore business capability in the event of a disaster) Risk Management Framework Current framework in operation 23 August 2011 (outlining Council’s approach to managing risks to our operations) Audit Committee (under section Committee established in 11 November 2009 139 of the Act to oversee the integrity accordance with section of Council’s financial reporting, processes 139 of the Act to manage risks to our operations and for compliance with applicable legal, ethical and regulatory requirements) Internal audit (independent accounting Internal auditor engaged 3 May 1995 professionals engaged by Council to provide analysis and recommendations aimed at improving our governance, risk and management controls) Performance Reporting Framework Current framework in operation 1 July 2014 (indicators measuring financial and non- financial performance, including those referred to in section 131 of the Act) Council Plan reporting (reviewing Current report 1 July 2014 Council’s performance the Council Plan, including the results in relation to the strategic indicators, for the first six months of the financial year) OUR PERFORMANCE 84 Moreland City Council

GOVERNANCE AND MANAGEMENT CHECKLIST (CONT’D)

Governance and management item Required Achieved

Financial reporting (quarterly statements Quarterly statements June quarter 2013–2014 to Council under section 138 of the presented to Council in on 10 September 2014 Act, comparing budgeted revenue and accordance with section September quarter 2014 expenditure with actual revenue and 138(1) of the Act on 10 November 2014 expenditure) December quarter 2014–2015 on 11 February 2015 March quarter 2014–2015 on 13 May 2015 Risk reporting (six-monthly reports of Reports prepared 23 June 2015 strategic risks to Council’s operations, their and presented likelihood and consequences of occurring and risk minimisation strategies) Performance reporting (six-monthly Reports prepared First quarter 10 December 2014 reports of indicators measuring the and presented Second quarter 11 March 2015 results against financial and non- financial performance, including those Third quarter 10 June 2015 referred to in section 131 of the Act) Fourth quarter 9 September 2015 Annual Report (report under sections Annual Report considered 22 September 2014 131, 132 and 133 of the Act to the at a Council meeting in community, including a report of accordance with section operations and audited financial 134 of the Act performance statements) Councillor Code of Conduct (under section Code of conduct reviewed 13 March 2013 76C of the Act setting out the conduct in accordance with section principles and the dispute resolution 76C of the Act processes to be followed by Councillors) Delegations (a document setting out the Delegations reviewed in 16 June 2015 powers, duties and functions of Council accordance with section and the Chief Executive Officer that have 98(6) of the Act been delegated to members of staff) Meeting procedures (a local law Meeting procedures local 14 May 2014 governing the conduct of Council law made in accordance meetings and special committees) with section 91(1) of the Act AMRITPAL

I came from Punjab eight months ago. I’ve just been to the MCG for the first time. It is such a big ground. Too big. My cricket hero is Sachin Tendulkar, the God of Cricket, but since he’s retired my favourite is Virat Kohli. GOVERNANCE AND MANAGEMENT 86 Moreland City Council

GOVERNANCE AND MANAGEMENT

Moreland City Council derives its power, role, purpose and functions from the Local Government Act 1989.

Council meetings COUNCILLOR ATTENDANCE AT Decisions on issues affecting our 20 COUNCIL MEETINGS 2014–2015 residents are made at our monthly Council meetings, where residents have the opportunity to participate Cr Sue Bolton 19 Cr Lambros Tapinos 19 in discussions and the decision- Cr Helen Davidson 19 Cr Michael Teti 9 making process. At each meeting, outside of the formal agenda, Cr Lita Gillies* 10 Cr Lenka Thompson** 13 residents have 30 minutes to raise matters. Cr Meghan Hopper 19 Cr Rob Thompson 19 We started live streaming Council meetings on 8 April 2015, which Cr John Kavanagh 19 Cr Oscar Yildiz JP 17 allows people to watch and Cr Samantha Ratnam 20 listen to the meeting proceedings in real time online. This option offers greater access to Council * Cr Gillies took a leave of absence from 16 April ** Cr L Thompson took a leave of absence from decision making and debate 2015 to 22 June 2015 and missed two Council 28 October 2014 to 2 February 2015 and and encourages openness meetings and two Urban Planning Committee missed two Council meetings during this period and transparency. meetings during this period Council met 20 times during the reporting period. ANNUAL REPORT 87 2014 – 2015

Major Committees Audit and Risk During the year, the Committee Management Committee was chaired by Cr John Kavanagh, We have two major committees: with two other Councillor members, The Audit and Risk Management the Urban Planning Committee and Cr Rob Thompson and Cr Samantha Committee acts as an advisory the Audit and Risk Management Ratnam, the Chief Executive Officer committee to Council and is Committee. and three external representatives. consistent with the requirements of Urban Planning Committee the Local Government Act 1989 and We are fortunate to have the good corporate governance generally. continuing services of Michael The Urban Planning Committee Francis (Managing Director of The Moreland Council Audit and Risk has a pivotal role in developing the Pneuvay Engineering Pty Ltd, a Management Committee Charter quality of life in Moreland. Everyone local Moreland company), Kevin was updated in February 2014 and is is welcome to attend the meetings Quigley (local resident, chartered generally consistent with the February and has the opportunity to speak accountant and business consultant) 2011 best practice guidelines for on applications and issues and John Hoffmann (local chartered audit committees outlined in Audit affecting them. accountant). Committees: A Guide to Good The committee considers matters Practice in Local Government. The committee met four times related to planning, building, in the reporting period. environmental health, property, The overall purpose of the roads and traffic in accordance committee is to provide a forum for Councillor expenses with Council’s obligations as communication between Council, outlined in the Council Plan and management and the internal and Councillor expenses are costs incurred in accordance with the legislative external auditors, and to assist us by Council to facilitate Councillor framework. in our oversight responsibilities by involvement and representation. monitoring, reviewing and advising on: The committee met 12 times The Local Government Act 1989 and considered 72 reports in »» The external auditor’s regulates the allowance payable to the reporting period. performance Mayors and Councillors in Victoria, »» The independence and performance setting minimum and maximum of the internal audit function amounts. Each Council has discretion within an allowable range to determine »» The truth and fairness of the the allowances it pays its Mayor view given by the annual financial, COUNCILLOR ATTENDANCE and Councillors, with regard to standard and performance local circumstances and priorities. AT 12 URBAN PLANNING statements of Council COMMITTEE MEETINGS Additionally, Councillors are 2014–2015 »» Council’s accounting policies entitled to claim expenses for some and practices in accordance activities incurred in their capacity with current and emerging Cr Helen Davidson 12 as a Councillor. These expenses accounting standards are outlined in our Councillor Cr Lita Gillies 3* »» Fraud risk mitigation Support and Reimbursement Policy. and investigation A detailed breakdown of Councillor Cr Meghan Hopper 4* »» The management and expenses is on our website. Cr Samantha Ratnam 8* exercise of delegations »» Compliance with legal Councillor code of conduct Cr Lambros Tapinos 8* and regulatory requirements As per the Local Government Act and policies 1989, we have a code of conduct Cr Michael Teti 1* »» Compliance with Council’s for our Councillors. Cr Rob Thompson 11 policy framework The Moreland Councillors Code »» Internal controls, the control of Conduct is available on our * Cr Gillies took a leave of absence from 16 April environment and the overall website and was updated within 2015 to 22 June 2015 and missed two Urban 12 months of the 2012 Council Planning Committee meetings. Cr Hopper efficiency and effectiveness and Cr Teti resigned from the Urban Planning of financial operations, and elections, in accordance with the Committee on 27 October 2014 and Cr Tapinos Local Government Act 1989. Copies and Cr Ratnam joined the Urban Planning »» Council’s overall risk management are also available from our Citizens Committee on 27 October 2014. and business continuity policy Service Centres. and programs.

Glenroy Festival GOVERNANCE AND MANAGEMENT 90 Moreland City Council

STATUTORY INFORMATION

State and federal government investigations We were not the subject of any state or federal government investigations.

Documents available for public inspection We are committed to open and transparent governance and in accordance with the Local Council Parking Government Act 1989 (the Act) and Officer at work Section 11 of the Local Government (General) Regulations 2004. The following documents are available for public inspection at Moreland Civic Centre, 90 Bell Street, Coburg: »» Details of current allowances an official capacity by Councillors »» A list of all special committees fixed for the Mayor, Lord Mayor or any member of Council staff established by the Council which (if any) and Councillors under in the previous 12 months were abolished or ceased to function during the financial year section 74 or 74A of the Act »» Names of Council officers who »» The total annual remuneration were required to submit a return »» Minutes of meetings of special for all senior officers in respect of interest during the financial committees established under of the current financial year and year and the dates the returns section 86 of the Act and held the previous financial year, set were submitted in the previous 12 months except if the minutes relate to parts of out in a list that states: »» Names of Councillors who meetings which have been closed submitted returns of interest –– Ranges of remuneration to members of the public under during the financial year and the of senior officers, where section 89 of the Act the difference between the dates the returns were submitted »» A register of delegations kept under lower amount and the high »» Agendas for and minutes of sections 87, 88 and 98 of the Act, amount in each range must ordinary and special meetings held including the dates on which the not exceed $10,000, and in the previous 12 months kept last reviews under section 86(6) under section 93 of the Act except –– The number of senior officers and 98(6) of the Act took place whose total annual remuneration if the minutes relate to parts of falls within the ranges referred meetings which have been closed »» Submissions received in to in subparagraph (i) to members of the public under accordance with section 223 of the section 89 of the Act Act during the previous 12 months »» Details of overseas or interstate travel (with the exception of »» A list of all special committees »» Agreements to establish interstate travel by land for less established by Council and regional libraries under than three days) undertaken in the purpose for which each section 196 of the Act committee was established ANNUAL REPORT 91 2014 – 2015

»» Details of all property, finance Best value programs that support continuous and operating leases involving improvement activities to ensure land, buildings, plant, computer We deliver on the Best Value they focus on legislation outcomes. equipment or vehicles entered into principles outlined in Section 208A of the Local Government Act, which by the Council as lessor or lessee, Service reviews including the name of the other requires all services to meet quality party to the lease and the terms and cost standards, be responsive to Two service reviews commenced and the value of the lease community needs, and be accessible in early 2015 and will be finalised to service recipients. and reported in the 2015–2016 »» A register of authorised officers financial year. appointed under section 224 We continue to achieve continuous of the Act improvement in the provision of our These include a review of our Urban services; regularly consult with our Safety Unit, which is examining »» A list of donations and grants made community in relation to our services; current work practices and reporting by the Council during the financial and report regularly, at least once a relative to legislative requirements in year, including the names of persons year, on our achievements in relation areas including parking operations, or bodies which have received a to the Best Value principles. local laws, animal management and donation or grant and the amount related administration functions. The Our MoreValue Program involves of each donation or grant goal is to ensure that the unit is well corporate and service area positioned to respond to current and »» A list of the names of the continuous improvement projects, future legislative changes and for organisations of which the Council utilising Lean Thinking methodologies providing valued and cost-effective was a member during the financial and service reviews. year and details of all membership service to customers. fees and other amounts and Outcomes from continuous A Utility Data Management Service services provided during that year improvement projects review is examining the current to each organisation by the Council data and financial management Rates capping »» A list of contracts valued at functions and processes associated $150,000 (or such higher amount In January 2015, the Minister for with Council’s $3.9 million annual as is fixed from time to time under Local Government informed all electricity, gas and water accounts. section 186(1) of the Act) or more: mayors and chief executive officers The review will recommend the that the rates capping policy will most cost-effective way to manage –– which the Council entered into be implemented in the 2016–2017 utility data management as a cross during the financial year without financial year and appointed the organisational service. first engaging in a competitive Essential Services Commission process, and (ESC) to carry out this work. Improvement projects –– which are not contracts referred The ESC published its draft report on A review of our parking infringement to in section 186(5) of the Act. 31 July 2015: A Blueprint for Change: notice review process identified Note: The act provides that an Local Government Rates Capping opportunities to significantly amount higher than $150,000 may and Variation Framework Review. improve customer response be fixed by Order in Council made times and financial savings by This legislation will significantly under section 186(1) of the Act. improving revenue management. impact on local government and Inspection of these documents make continuous improvement more A review of the way our central can be arranged by contacting the important. We are currently reviewing name and address register manages Manager Governance on 9240 1111. data commenced, with a focus on GOVERNANCE AND MANAGEMENT 92 Moreland City Council

improving and optimising ‘one view’ Freedom of FOI REQUESTS PROCESSED of customers’ data for a faster and Information IN 2014–2015 better quality customer experience. The Freedom of Information (FOI) System changes to improve Act 1982 gives the community Planning and 12 customer interactions with a legal right to access certain building related our planning processes Council documents. Health or personal were implemented, including: 3 The FOI Act has four basic principles: information related »» Tailoring planning scheme About other areas 1. The public has a legal right 16 amendment data processing for of Council consistent delivery of all business of access to information and statutory requirements 2. Local governments are required to publish information concerning »» Enabling online lodgement of Granted in full 2 planning objections and fast the documents they hold tracking of minor applications 3. People may request that Granted in part 25 via VicSmart inaccurate, incomplete, out-of- date or misleading information »» Implementing a new public Denied in full 4 notice process for heritage- in their personal records be only applications where amended, and Reviewed by FOI 3 partial exemptions apply, and 4. People may appeal against Commissioner »» Improving the customer a decision not to give access request process for planning to the information or not to Accessing FOI amend a personal record. enforcement complaints. Requests to access FOI must A new Management and We are subject to the FOI Act be in writing and accompanied by an Maintenance of our Sports Grounds and responds to requests directly application fee of $27.20. related to our operations. Policy is being implemented so On receipt of a request, a decision we can provide the best level of There were 32 FOI requests must be made within 45 days. Where maintenance and management processed in 2014–2015. a decision is made to refuse or defer possible, while providing equitable access, the applicant is notified access and safe playing conditions The most common exemption clause in the requests granted in in writing of the reasons for the for users and sustainably managing refusal and the procedures available sporting grounds. part was section 33(1), which relates to the unreasonable disclosure of available to appeal the decision. Key initiatives of the policy, such as information relating to the personal improved capital budget planning and affairs of any person. scheduled works to maximise use of sports grounds, will be the reported against in the 2015–2016 financial year. The policy’s effectiveness will be reviewed in February 2017. Gowanbrae Multipurpose Courts

Local laws Information Any person wishing to access their Privacy Policy personal information should contact We have the following local laws: Council’s Privacy Officer on phone »» Environmental and Civic We believe that the responsible 9240 1111. If any citizen believes Assets Local Law 2014 handling of personal information that their personal information is is a key aspect of good democratic inaccurate, incomplete or out of » Moreland City Council » governance, and is strongly date, they may request Council to General Local Law 2007 committed to protecting every correct the information. If any citizen »» Meeting Procedure individual’s right to privacy. feels aggrieved by our handling of Local Law 2014 Accordingly, we are committed to their personal information, they may full compliance with our obligations make a complaint to Council’s Privacy under the Information Privacy Act Officer. The complaint is investigated Whistleblower 2000 (Vic) and the Health Records legislation as soon as possible and a written Act 2001 (the Acts). In particular, response is provided. Alternatively, The purpose of the Protected we comply with the Information any person may make a complaint to Disclosure Act 2012 (the Act) Privacy Principles (IPPs) and Health the Privacy Commissioner. is to encourage and facilitate Privacy Principles (HPPs) contained disclosures of improper conduct in the Acts. Our policy applies to all During the reporting period there by Council officers or Councillors. personal information held by Council. were no complaints referred to us by the Privacy Commissioner. The Act provides protection to For example, we hold personal (and whistleblowers that make disclosures in some cases sensitive) information in accordance with the Act, and on our local citizens and ratepayers establishes a system for the matters (for example, names and addresses) disclosed to be investigated and in order to carry out our functions rectifying action to be taken. (for example, planning, valuation As required by section 58 of the and property services). We may Act, we have developed disclosure also request personal information procedures, which can be found in order to provide education, welfare on Council’s website. and other community services (for example, child care services). In During the reporting period there some instances, personal information was one complaint referred to us may be contained on a public register by the Ombudsman or IBAC. The (for example, register of building Ombudsman’s Office investigated permits, food premises and animal the complaint and found that it registration details). had no substance. Our Information Privacy Policy applies All correspondence, phone calls to all our employees, Councillors and or emails from internal or external contractors to Council. Training and whistleblowers should be addressed awareness sessions, local procedures to Moreland City Council’s and a policy manual ensure personal Protected Disclosure Coordinator information is protected and strong on phone 9240 1111 or email security frameworks around its use [email protected]. and disclosure are provided.

Park in Gowanbrae FINANCIAL REPORT 96 Moreland City Council

FINANCIAL REPORT

A PLAIN ENGLISH GUIDE TO THE FINANCIAL REPORT

Committee and by Council, and 01 04 then audited by the Victorian Introduction Auditor-General. Balance sheet The financial report is a key report The five statements are included The balance sheet is a snapshot of presented by the local government in the first few pages of the report. the financial situation as at 30 June. of Moreland. It shows how we They are the comprehensive income It shows what we own as assets and performed financially during the statement, balance sheet, statement what we owe as liabilities. Towards financial year and the overall of changes in equity, statement the bottom of the balance sheet is position at the end of the of cash flows and statement of a line showing net assets. This is financial year (30 June 2015). capital works. the net worth of Council, which has been built up over many years. Our financial report complies The notes detail our accounting with Australian Accounting policies and the make-up of values The assets and liabilities are Standards, other authoritative contained in the statements. separated into current and non- pronouncements of the Australian current. Current means those Accounting Standards Board, the assets or liabilities, which will 03 Local Government Act 1989, and fall due in the next 12 months. the Local Government (Planning Comprehensive The components of the balance and Reporting) Regulations 2014. income statement sheet are described here. Particular terms required by the The comprehensive income Standards may not be familiar to statement shows: some readers. Further, we are a ‘not 4.1 Current and for profit’ organisation and some of »» the sources of our revenue under non-current assets the generally recognised terms used various income headings, and Cash and other financial assets in private sector company reports »» the expenses incurred in running include cash and investments, are not appropriate to our reports. Council during the year. that is, cash held in the bank and We are committed to accountability. in petty cash and the market value The expenses relate only to the It is in this context that a plain English of our investments. ‘operations’ and do not include the guide has been developed to assist cost associated with the purchase of »» Receivables are monies owed readers to understand and analyse or the building of assets. While asset to us by ratepayers and others. the financial report. purchase costs are not included in »» Non-current financial assets the expenses there is an item for represent the value of shares 02 ‘depreciation’. This amount is the held by us. What is contained in the value of the assets used up during the year. »» Investment property represents annual financial report? the value of property owned by The key figure to look at is the profit Our financial report has two main us as investment. or (loss) of Council for the year. A sections: the report and the notes. profit means that the revenue was »» Property, infrastructure, plant There are five statements and greater than the expenses and and equipment is the largest 38 notes. These are prepared by a loss means that the expenses component of our worth and our staff, examined by the Audit were greater than the revenue. represents the value of all the ANNUAL REPORT 97 2014 – 2015

land, buildings, roads, vehicles, be converted to cash, such as cash 05 equipment and so on, which invested with funds managers. has been built up by us over Statement of Our cash arises from, and is many years. changes in equity used in, three main areas: During the course of the year the »» Cash flows from 4.2 Current and value of total ratepayer’s equity as operating activities: non-current liabilities set out in the balance sheet changes. –– Receipts – all cash received »» Payables are those to whom This statement shows the values into our bank account from we owe money as at 30 June. of such changes and how these changes arose. ratepayers and others who »» Provisions include accrued long owed money to us. Receipts service and annual leave owed The main reasons for a also include the interest to employees. change in equity stem from: earnings from our cash investments. It does not »» Trust funds represent monies »» the ‘profit or loss’ from operations, include the costs associated held in trust by us. described in the statement as operating surplus or (deficit) with the sale of assets. »» Loans represent our for the year –– Payments – all cash paid by outstanding borrowings. »» the use of monies from us from our bank account our reserves, and to staff, creditors and other 4.3 Net assets persons. It does not include This term is used to describe the »» revaluation of the assets; this the costs associated with difference between the value of total takes place on a regular basis the creation of assets. assets and the value of total liabilities. and also occurs when existing »» Cash flows from investing activities It represents the net worth of Council assets are taken up in the books as at 30 June. for the first time. –– this section shows the cash invested in the creation or purchase of property, 4.4 Total equity 06 infrastructure, plant and This always equals net assets. Statement of cash flows equipment assets and the It is made up of the following The cash flow statement summarises cash received from the sale components: our cash payments and cash of these assets. »» Asset revaluation reserve is the receipts for the year. This statement »» Cash flows from financing activities difference between the previously is presented according to a very –– this is where the receipt and recorded value of assets and their specific accounting standard and repayment of borrowed funds current valuations needs some care in analysis. The are recorded. values may differ from those shown »» General reserves are allocations in the income statement as it is The bottom line of the cash flow of the accumulated surplus prepared on a cash accounting basis. statement states the cash held at the to specific activities, and end of the financial year. This shows Cash in this statement refers to bank »» Accumulated surplus is our capacity to meet our cash debts deposits and other forms of highly and other liabilities. the value of all net assets liquid investments that can readily accumulated over time. Sparta Place, Brunswick

Where we wish to disclose other 07 10 information, which cannot be Statement of capital works incorporated into the statements, Auditor General’s report The statement of capital works it is shown in the notes. The independent audit report is to detail all amounts expended Other notes include: provides the reader with an external by council on capital works. The and independent opinion on the » the breakdown of expenses, statement classifies the expenditure » financial statements. It confirms revenues, reserves and in line with Council’s asset classes. that the financial report has been other assets prepared in accordance with relevant It categorises capital works » contingent liabilities, and legislation and professional standards expenditure into renewal of assets, » and that it represents a fair picture upgrading of assets, expansion of »» transactions with persons of our financial affairs. assets or creating new assets. Each related to Council. of these categories has a different Council’s main office The notes should be read at the impact on Council’s future costs. 90 Bell Street Coburg, same time as, and together with, the Victoria 3058 other parts of the financial statements 08 to get a clear picture of the accounts. External Auditor Notes to the accounts Auditor-General of Victoria The notes are a very important 09 Internal Auditor and informative section of the report. Statements by Principal Senior Officer – Ian Thomas The accounting standards are Accounting Officer and Solicitors not prescriptive in a lot of issues. Councillors Various Therefore, to enable the reader to understand the basis on which the The Certification of the Principal Bankers values shown in the statements are Accounting Officer is made by the Commonwealth Bank of Australia established it is necessary to provide person responsible for the financial Website address details of Council’s accounting management of Council that, in her/ www.moreland.vic.gov.au policies. These are described in his opinion, the financial statements Note 1. have met all the statutory and professional reporting requirements. Apart from the accounting policies, the notes also give details behind The certification of Councillors is many of the summary figures made by two Councillors on behalf contained in the statements. The of Council that, in their opinion, the note numbers are shown beside the financial statements are fair and not relevant items in the comprehensive misleading. income statement, balance sheet, statement of cash flows and statement of capital works. ANNUAL REPORT 99 2014 – 2015

FINANCIAL REPORT

TABLE OF CONTENTS

100 FINANCIAL STATEMENTS

Comprehensive income statement / 100 Statement of cash flows / 103 Balance sheet / 101 Statement of capital works / 104 Statement of changes in equity / 102

105 NOTES TO FINANCIAL STATEMENTS

Introduction / 105 Note 22 Other assets / 125 Note 1 Significant accounting policies / 105 Note 23 Property, infrastructure, plant and equipment / 125 Note 2 Budget comparison / 112 Note 24 Investment property / 137 Note 3 Rates and charges / 116 Note 25 Trade and other payables / 137 Note 4 Statutory fees and fines / 117 Note 26 Trust funds and deposits / 138 Note 5 User fees / 117 Note 27 Provisions / 138 Note 6 Grants / 118 Note 28 Interest-bearing loans Note 7 Contributions / 119 and borrowings / 139 Note 8 Net gain / (loss) on disposal Note 29 Reserves / 140 of property,infrastructure, plant and equipment / 119 Note 30 Reconciliation of cash flows from operating activities Note 9 Other income / 120 to surplus or deficit / 142 Note 10 Employee costs / 120 Note 31 Reconciliation of cash Note 11 Materials and services / 121 and cash equivalents / 142 Note 12 Bad and doubtful debts / 121 Note 32 Financing arrangements / 142 Note 13 Depreciation / 121 Note 33 Commitments / 143 Note 14 Borrowing costs / 121 Note 34 Operating leases / 145 Note 15 Other expenses / 121 Note 35 Contingent liabilities and contingent assets / 146 Note 16 Investments in associated and subsidiaries / 122 Note 36 Financial instruments / 148 Note 17 Cash and cash equivalents / 123 Note 37 Events occurring after balance date / 150 Note 18 Trade and other receivables / 123 Note 38 Related party transactions / 151 Note 19 Other financial assets / 124 Independent Auditor’s Report for Financial Statements / 152 Note 20 Inventories / 124 Certification of the Financial Statements / 154 Note 21 Non-current assets held for sale / 124 FINANCIAL REPORT 100 Moreland City Council

COMPREHENSIVE INCOME STATEMENT For the year ended 30 June 2015

Note 2015 $’000 2014 $’000

Income Rates and charges 3 122,847 114,268 Statutory fees and fines 4 8,873 8,674 User fees 5 8,410 6,780 Grants – operating 6 19,479 14,097 Grants – capital 6 661 3,604 Contributions – monetary 7 9,750 5,152 Contributions – non monetary 7 5,978 1,772 Net gain / (loss) on disposal of property, infrastructure, plant and equipment 8 (1,917) 83 Fair value adjustments for investment property 24 3,113 2,046 Other income 9 6,535 6,015 Total income 183,728 162,490

Expenses Employee costs 10 72,863 71,815 Materials and services 11 51,562 48,710 Bad and doubtful debts 12 1,472 1,448 Depreciation 13 21,369 22,969 Borrowing costs 14 2,332 2,285 Other expenses 15 67 67 Share of net (profits) / losses of associates 16 2 18 Total expenses 149,669 147,312

Surplus/(deficit) for the year 34,059 15,178

Other comprehensive income Items that will not be reclassified to surplus or deficit in future periods Net asset revaluation increment / (decrement) 29 (a) – 62,491 Comprehensive result 34,059 77,669

The above comprehensive income statement should be read in conjunction with the accompanying notes. ANNUAL REPORT 101 2014 – 2015

BALANCE SHEET As at 30 June 2015

Note 2015 $’000 2014 $’000

Assets Current assets Cash and cash equivalents 17 26,239 20,533 Trade and other receivables 18 18,580 17,794 Other financial assets 19 17,700 11,000 Inventories 20 222 127 Non-current assets classified as held for sale 21 2,008 349 Other assets 22 67 154 Total current assets 64,816 49,957

Non-current assets Investments in associates 16 – 1,280 Property, infrastructure, plant and equipment 23 1,583,023 1,565,528 Investment property 24 29,809 26,696 Total non-current assets 1,612,832 1,593,504 Total assets 1,677,648 1,643,461

Liabilities Current liabilities Trade and other payables 25 16,175 13,849 Trust funds and deposits 26 1,545 1,388 Provisions 27 16,731 16,752 Interest-bearing loans and borrowings 28 12,570 1,891 Total current liabilities 47,022 33,880

Non-current liabilities Provisions 27 1,401 1,487 Interest-bearing loans and borrowings 28 36,797 49,726 Total non-current liabilities 38,198 51,213 Total liabilities 85,219 85,093 Net assets 1,592,428 1,558,368

Equity Accumulated surplus 500,491 474,837 Asset revaluation reserve 29 (a) 1,073,283 1,073,283 Other reserves 29 (b) 18,654 10,249 Total equity 1,592,429 1,558,369

The above balance sheet should be read with the accompanying notes. FINANCIAL REPORT 102 Moreland City Council

STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2015

Asset Accumulated Other Total revaluation surplus reserves reserve

2015 Note 2015 $’000 2015 $’000 2015 $’000 2015 $’000

Balance at beginning of the financial year 1,558,370 474,835 1,073,283 10,251 Surplus / (deficit) for the year 34,059 34,059 – – Net asset revaluation increment / 29(a) – – – – (decrement) Transfers to other reserves 29(b) – (12,044) – 12,044 Transfers from other reserves 29(b) – 3,640 – (3,640) Balance at end of the financial year 1,592,429 500,491 1,073,283 18,654

Asset Accumulated Other Total revaluation surplus reserves reserve

2014 Note 2014 $’000 2014 $’000 2014 $’000 2014 $’000

Balance at beginning of the financial year 1,480,700 461,967 1,010,792 7,941 Surplus / (deficit) for the year 15,178 15,178 – – Net asset revaluation increment / 29(a) 62,491 – 62,491 – (decrement) Transfers to other reserves 29(b) – (7,961) – 7,961 Transfers from other reserves 29(b) – 5,653 – (5,653) Balance at end of the financial year 1,558,369 474,837 1,073,283 10,249

The above statement of changes in equity should be read in conjunction with the accompanying notes. ANNUAL REPORT 103 2014 – 2015

STATEMENT OF CASH FLOWS For the year ended 30 June 2015

Inflows/(Outflows) Inflows/(Outflows)

Note 2015 $’000 2014 $’000

Cash flows from operating activities Rates and charges 122,306 112,827 Statutory fees and fines 7,635 6,930 User fees 9,545 8,537 Grants operating 19,480 14,280 Grants capital 723 3,604 Contributions – monetary 9,847 5,423 Interest 1,716 1,790 Trust funds and deposits taken 12,639 12,146 Other receipts 4,530 4,165 Net GST refund/payment 7,201 7,199 Materials and services (58,238) (57,793) Employee costs (including redundancies) (73,054) (82,842) Trust funds and deposits repaid (12,482) (12,136) Other payments (75) (75) Net cash provided by / (used in) operating activities 30 51,773 24,054

Cash flows from investing activities Payments for property, infrastructure, plant and equipment (35,403) (42,050) Proceeds from sale of property, infrastructure, plant and 617 755 equipment Payments for other financial assets (6,700) (4,300) Net cash provided by / (used in) investing activities (41,486) (45,595)

Cash flows from financing activities Finance costs (2,332) (2,285) Proceeds from interest bearing loans and borrowings 22,970 13,072 Repayment of interest bearing loans and borrowings (25,220) (2,531) Net cash provided by / (used in) financing activities (4,582) 8,256

Net increase (decrease) in cash and cash equivalents 5,705 (13,285) Cash and cash equivalents at the beginning of the 20,533 33,818 financial year Cash and cash equivalents at the end of the financial year 31 26,238 20,533

Financing arrangements 32 Restrictions on cash assets 17

The above statement of cash flows should be read in conjunction with the accompanying notes. FINANCIAL REPORT 104 Moreland City Council

STATEMENT OF CAPITAL WORKS As at 30 June 2015

Note 2015 $’000 2014 $’000

Property Land 8,244 11,918 Total land 8,244 11,918

Buildings 13,057 13,265 Total buildings 13,057 13,265

Total property 21,301 25,183

Plant and equipment Plant, machinery and equipment 1,739 2,017 Fixtures, fittings and furniture 96 77 Computers and telecommunications 942 1,361 Library books 946 920 Total plant and equipment 3,722 4,375

Infrastructure Roads 5,556 2,636 Bridges 262 348 Footpaths and cycleways 2,439 2,089 Drainage 2,464 2,926 Other infrastructure 6,114 4,777 Total infrastructure 16,835 12,776

Total capital works expenditure 41,858 42,334

Represented by: New asset expenditure 21,036 18,147 Asset renewal expenditure 15,550 5,128 Asset expansion expenditure 665 137 Asset upgrade expenditure 4,607 18,922 Total capital works expenditure 41,858 42,334

The above statement of capital works should be read in conjunction with the accompanying notes. ANNUAL REPORT 105 2014 – 2015

NOTES TO THE FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2015

Introduction Judgements, estimates and b) Change in accounting policies assumptions are required to be made There have been no changes The Moreland City Council was about the carrying values of assets in accounting policies from established by an Order of the and liabilities that are not readily the previous period. Governor in Council on the 21 June apparent from other sources. The 1994 and is a body corporate. estimates and associated judgements c) Principles of consolidation The Council’s main office is located are based on professional judgement at 90 Bell Street, Coburg. derived from historical experience The consolidated financial statements and various other factors that are of Council incorporate all entities Statement of compliance believed to be reasonable under controlled by Council as at 30 June the circumstances. Actual results 2015, and their income and expenses These financial statements are a may differ from these estimates. for that part of the reporting period general purpose financial report that in which control existed. consists of a comprehensive income Revisions to accounting estimates statement, balance sheet, statement are recognised in the period in which Subsidiaries are all entities over of changes in equity, statement of the estimate is revised and also which Council has control. Council cash flows, statement of capital in future periods that are affected controls an entity when it is exposed works and notes accompanying by the revision. Judgements and to, or has rights to, variable returns these financial statements. The assumptions made by management from its involvement with the entity general purpose financial report in the application of AAS’s that have and has the ability to affect those complies with Australian Accounting significant effects on the financial returns through its power to direct Standards, other authoritative statements and estimates relate to: the activities of the entity. Subsidiaries pronouncements of the Australian »» the fair value of land, buildings, are fully consolidated from the date Accounting Standards Board, the infrastructure, plant and equipment on which control is transferred to the Local Government Act 1989, and (refer to note 1 (m) ) Council. They are deconsolidated the Local Government (Planning from the date that control ceases. and Reporting) Regulations 2014. »» the determination of depreciation for buildings, infrastructure, plant Where dissimilar accounting policies and equipment (refer to note 1 (n) ) are adopted by entities and their NOTE 1 effect is considered material, »» the determination of employee adjustments are made to ensure Significant provisions (refer to note 1 (t) ) consistent policies are adopted in accounting policies Unless otherwise stated, all these financial statements. a) Basis of accounting accounting policies are consistent In the process of preparing with those applied in the prior year. The accrual basis of accounting consolidated financial statements Where appropriate, comparative has been used in the preparation all material transactions and figures have been amended to of these financial statements, balances between consolidated accord with current presentation, whereby assets liabilities, equity, entities are eliminated. and disclosure has been made of any income and expenses are recognised material changes to comparatives. No entities are consolidated in the reporting period to which in these financial statements they relate, regardless of when cash is received or paid. FINANCIAL REPORT 106 Moreland City Council

d) Committees of management Statutory fees and fines Contributions All entities controlled by Council that Statutory fees and fines Monetary and non monetary have material revenues, expenses, (including parking fees and fines) contributions are recognised as assets or liabilities, such as Special are recognised as revenue when revenue when Council obtains Committees of Management, have the service has been provided, control over the contributed asset. been included in this financial report. the payment is received, or when Any transactions between these the penalty has been applied, Sale of property, infrastructure, entities and the Council have whichever first occurs. plant and equipment been eliminated in full. The profit or loss on sale of an User fees asset is determined when control e) Accounting for investments User fees are recognised as of the asset has irrevocably in associates revenue when the service has passed to the buyer. Associates been provided or the payment is received, whichever first occurs. Associates are all entities over Rental which Council has significant Rents are recognised as revenue Grants influence but not control or joint when the payment is due or the control. Investments in associates Grant income is recognised payment is received, whichever first are accounted for using the equity when Council obtains control of the occurs. Rental payments received method of accounting, after initially contribution. This is normally obtained in advance are recognised as a being recognised at cost. upon their receipt (or acquittal) prepayment until they are due. or upon earlier notification that f) Revenue recognition a grant has been secured, Interest and are valued at their fair Income is recognised when the value at the date of transfer. Interest is recognised as it is earned. Council obtains control of the contribution or the right to receive Where grants or contributions Dividends the contribution, it is probable that recognised as revenues during the the economic benefits comprising the financial year were obtained on Dividend revenue is recognised when contribution will flow to the Council condition that they be expended in the Council’s right to receive payment and the amount of the contribution a particular manner or used over a is established. can be measured reliably. particular period and those conditions were undischarged at balance date, Other Income the unused grant or contribution is Rates and Charges Other income is measured at the fair disclosed in note 6. The note also value of the consideration received Annual rates and charges are discloses the amount of unused or receivable and is recognised when recognised as revenues when grant or contribution from prior years Council gains control over the right Council issues annual rates notices. that was expended on Council’s to receive the income. Supplementary rates are recognised operations during the current year. when a valuation and reassessment is completed and a supplementary rates notice issued. ANNUAL REPORT 107 2014 – 2015

g) Fair value measurement For the purpose of fair value k) Inventories disclosures, Council has determined Council measures certain assets Inventories held for distribution classes of assets and liabilities on the and liabilities at fair value where are measured at cost adjusted basis of the nature, characteristics required or permitted by Australian when applicable for any loss of and risks of the asset or liability and Accounting Standards. AASB 13 service potential. Inventories the level of the fair value hierarchy Fair value measurement, aims to are measured at the lower of as explained above. improve consistency and reduce cost and net realisable value. complexity by providing a definition In addition, Council determines All other inventories, including land of fair value and a single source of fair whether transfers have occurred held for sale, are measured at the value measurement and disclosure between levels in the hierarchy lower of cost and net realisable requirements for use across by re-assessing categorisation value. Where Inventories are Australian Accounting Standards. (based on the lowest level input acquired for no cost or nominal that is significant to the fair value AASB 13 defines fair value as the consideration, they are measured measurement as a whole) at the price that would be received to at current replacement cost at end of each reporting period. sell an asset or paid to transfer the date of acquisition. a liability in an orderly transaction h) Cash and cash equivalents between market participants at the l) Non-current assets measurement date. Fair value under Cash and cash equivalents include classified as held for sale AASB 13 is an exit price regardless cash on hand, deposits at call, and A non-current asset classified as of whether that price is directly other highly liquid investments with held for sale (including disposal observable or estimated using original maturities of 90 days or less, groups) is measured at the lower another valuation technique. net of outstanding bank overdrafts. of its carrying amount and fair value All assets and liabilities for which fair less costs to sell, and are not subject value is measured or disclosed in the i) Trade and other receivables to depreciation. Non current assets, financial statements are categorised Trade and other receivables disposal groups and related liabilities within a fair value hierarchy, described assets are treated as current and as follows, based on the lowest level Receivables are carried at amortised classified as held for sale if their input that is significant to the fair cost using the effective interest rate carrying amount will be recovered value measurement as a whole: method. A provision for doubtful through a sale transaction rather debts is recognised when there is Level 1 – Quoted (unadjusted) than through continuing use. This objective evidence that an impairment condition is regarded as met only market prices in active markets has occurred. for identical assets or liabilities when the sale is highly probable and the asset’s sale (or disposal Level 2 – Valuation techniques j) Other financial assets group sale) is expected to be for which the lowest level input Other financial assets are valued completed within 12 months that is significant to the fair value at fair value, being market value, from the date of classification. measurement is directly or at balance date. Term deposits indirectly observable; and are measured at amortised cost. Level 3 – Valuation techniques Any unrealised gains and losses for which the lowest level input on holdings at balance date are that is significant to the fair value recognised as either a revenue measurement is unobservable. or expense. FINANCIAL REPORT 108 Moreland City Council

m) Recognition and At balance date, the Council reviewed increments. Within the same class of measurement of property, the carrying value of the individual assets, revaluation increments and infrastructure, plant and classes of assets measured at fair decrements within the year are offset. equipment value to ensure that each asset materially approximated its fair value. Acquisition Land under roads Where the carrying value materially The purchase method of accounting differed from the fair value at balance Land under roads acquired after is used for all acquisitions of date, the class of asset was revalued. 30 June 2008 is brought to account assets, being the fair value using the fair value basis. Council Fair value valuations are determined in of assets provided as consideration does not recognise land under accordance with a valuation hierarchy. at the date of acquisition plus roads that it controlled prior to Changes to the valuation hierarchy any incidental costs attributable that period in its financial report. will only occur if an external change to the acquisition. Fair value is in the restrictions or limitations of use the amount for which the asset n) Depreciation of on an asset result in changes to the could be exchanged between property, infrastructure, permissible or practical highest and knowledgeable willing parties plant and equipment best use of the asset. Further details in an arm’s length transaction. regarding the fair value hierarchy Buildings, plant and equipment, Where assets are constructed by are disclosed at Note 23, Property, infrastructure and other assets having Council, cost includes all materials infrastructure, plant and equipment. limited useful lives are systematically used in construction, direct labour, depreciated over their useful lives to In addition, Council undertakes a borrowing costs incurred during the Council in a manner which reflects formal revaluation of land, buildings, construction and an appropriate consumption of the service potential and infrastructure assets on a regular share of directly attributable embodied in those assets. Estimates basis ranging from 2 to 3 years. variable and fixed overheads. of remaining useful lives and residual The valuation is performed either values are made on a regular basis In accordance with Council’s policy, by experienced Council officers with major asset classes reassessed the threshold limits detailed in Note or independent experts. annually. Depreciation rates and 1 n have applied when recognising Where the assets are revalued, the methods are reviewed annually. assets within an applicable asset revaluation increments are credited class and unless otherwise stated Where assets have separate directly to the asset revaluation reserve are consistent with the prior year. identifiable components that are except to the extent that an increment subject to regular replacement, these reverses a prior year decrement for Revaluation components are assigned distinct that class of asset that had been useful lives and residual values Subsequent to the initial recognition recognised as an expense in which and a separate depreciation rate is of assets, non-current physical case the increment is recognised determined for each component. assets, other than plant and as revenue up to the amount of the equipment, are measured at expense. Revaluation decrements Road earthworks are not depreciated their fair value, being the price are recognised as an expense except on the basis that they are assessed as that would be received to sell where prior increments are included not having a limited useful life. an asset or paid to transfer a in the asset revaluation reserve for Artworks are not depreciated. Straight liability in an orderly transaction that class of asset in which case the line depreciation is charged based on between market participants decrement is taken to the reserve the residual useful life as determined at the measurement date. to the extent of the remaining each year. ANNUAL REPORT 109 2014 – 2015

Depreciation periods used are listed Asset recognition thresholds Depreciation Threshold below and are consistent with the and depreciation periods period limit $’000 prior year unless otherwise stated. Property Land o) Repairs and maintenance »» Land Not applicable No limit Routine maintenance, repair costs, and minor renewal costs are »» Land under roads Not applicable No limit expensed as incurred. Where the Buildings repair relates to the replacement »» Buildings 20 to 100 years 1 of a component of an asset and Plant and equipment the cost exceeds the capitalisation threshold the cost is capitalised and »» Plant and equipment 3 to 10 years 3 depreciated. The carrying value of »» Furniture and fittings 3 to 10 years 1 the replaced asset is expensed. »» Computer equipment 3 to 10 years 1 »» Library books 3 to 10 years 1 p) Investment property Motor vehicles up to 10 years 3 Investment property, comprising Artworks Not applicable 1 freehold office complexes, is held to generate long-term rental yields. Investment property is measured Infrastructure initially at cost, including transaction Roads surface up to 30 years 1 costs. Costs incurred subsequent Road pavement up to 100 years 1 to initial acquisition are capitalised when it is probable that future Drains up to 100 years 1 economic benefit in excess of the Footpaths (includes shared footways) up to 50 years 1 originally assessed performance Kerb and channel up to 75 years 1 of the asset will flow to the Council. Bridges up to 80 years 1 Subsequent to initial recognition at cost, investment property is carried at fair value, determined annually Other Infrastructure by independent valuers. Changes to fair value are recorded in the »» Street furniture up to 10 years 10 comprehensive income statement »» Recreational, leisure in the period that they arise. and community facilities up to 50 years 5 Rental income from the leasing »» Parks, open space and streetscapes up to 25 years 5 of investment properties is »» Playground equipment recognised in the comprehensive and other structures up to 50 years 5 income statement on a straight line basis over the lease term. FINANCIAL REPORT 110 Moreland City Council

q) Impairment of assets s) Borrowings t) Employee costs and benefits At each reporting date, the Council Borrowings are initially measured The calculation of employee costs reviews the carrying value of its at fair value, being the cost of the and benefits includes all relevant assets to determine whether there interest bearing liabilities, net of on-costs and are calculated as is any indication that these assets transaction costs. The measurement follows at reporting date. have been impaired. If such an basis subsequent to initial recognition indication exists, the recoverable depends on whether the Council Wages and salaries and annual leave amount of the asset, being the higher has categorised its interest-bearing of the asset’s fair value less costs to liabilities as either financial liabilities Liabilities for wages and salaries, sell and value in use, is compared designated at fair value through the including non-monetary benefits, to the assets carrying value. Any profit and loss, or financial liabilities annual leave and accumulated sick excess of the assets carrying value at amortised cost. Any difference leave expected to be wholly settled over its recoverable amount is between the initial recognised within 12 months of the reporting expensed to the comprehensive amount and the redemption value date are recognised in the provision income statement, unless the asset is recognised in net result over the for employee benefits in respect of is carried at the revalued amount period of the borrowing using the employee services up to the reporting in which case, the impairment loss effective interest method. date, classified as current liabilities and is recognised directly against the measured at their nominal values. The classification depends on the revaluation surplus in respect of the nature and purpose of the interest Liabilities that are not expected to be same class of asset to the extent that bearing liabilities. The Council wholly settled within 12 months of the the impairment loss does not exceed determines the classification of its reporting date are recognised in the the amount in the revaluation surplus interest bearing liabilities at initial provision for employee benefits as for that same class of asset. recognition. current liabilities, measured at present value of the amounts expected to be r) Trust funds and deposits paid when the liabilities are settled Borrowing costs using the remuneration rate expected Amounts received as deposits and Borrowing costs are recognised to apply at the time of settlement. retention amounts controlled by as an expense in the period in which Council are recognised as trust funds they are incurred, except where they until they are returned, transferred in Long service leave are capitalised as part of a qualifying accordance with the purpose of the asset constructed by Council. Except Liability for long service leave (LSL) receipt, or forfeited (refer to note 26). where specific borrowings are is recognised in the provision for Separate and distinct trust funds are obtained for the purpose of specific employee benefits. maintained for all monies held under asset acquisition, the weighted Current liability – unconditional Trust Deed arrangements. Trust funds average interest rate applicable LSL is disclosed as a current liability are classified as current liabilities to borrowings at balance date, even when the council does not (refer to note 26). excluding borrowings associated with expect to settle the liability within superannuation, is used to determine 12 months because it will not have the borrowing costs to be capitalised. the unconditional right to defer Borrowing costs include interest settlement of the entitlement should on borrowings. an employee take leave within 12 months ANNUAL REPORT 111 2014 – 2015

The components of this current u) Leases x) Contingent assets liability are measured at: and contingent liabilities Operating leases and commitments »» present value – component Lease payments for operating that is not expected to be Contingent assets and contingent leases are required by the accounting settled within 12 months liabilities are not recognised in the standard to be recognised on balance sheet, but are disclosed »» nominal value – component a straight line basis, rather than by way of a note and, if quantifiable, that is expected to be settled expensed in the years in which are measured at nominal value. within 12 months. they are incurred. Contingent assets and liabilities are presented inclusive of GST Classification of employee costs v) Goods and Services Tax (GST) receivable or payable respectively. Non-current liability – conditional Revenues, expenses and assets Commitments are not recognised LSL that has been accrued, where are recognised net of the amount in the balance sheet. Commitments an employee is yet to reach a of GST, except where the amount are disclosed at their nominal value qualifying term of employment, is of GST incurred is not recoverable by way of note and presented disclosed as a non – current liability. from the Australian Tax Office. In inclusive of the GST payable. There is an unconditional right to these circumstances the GST is defer settlement of the entitlement recognised as part of the cost of y) Rounding until the employee has completed acquisition of the asset or as part of the requisite years of service. an item of the expense. Receivables Unless otherwise stated, amounts and payables in the balance sheet in the financial report have been This non-current LSL liability are shown inclusive of GST. rounded to the nearest thousand is measured at present value. dollars. Figures in the financial Cash flows are presented in the statement may not equate due cash flow statement on a gross Retirement gratuities to rounding. basis, except for the GST component Retirement gratuities were provided of investing and financing activities, to certain employees who were, which are disclosed as operating z) Pending accounting standards prior to the formation of Moreland cash flows. Certain new AAS’s have been City Council, employed by the City issued that are not mandatory of Brunswick. The liability represents w) Financial guarantees for the 30 June 2015 reporting payment amounts calculated on the period. Council has assessed these basis of achieved levels of available Financial guarantee contracts are not pending standards and has identified sick leave. At balance date, the recognised as a liability in the balance that no material impact will flow from liability is measured at the present sheet unless the lender has exercised the application of these standards in value of estimated future cash flows their right to call on the guarantee or future reporting periods. to be made for this entitlement. Council has other reasons to believe that it is probably that right will be exercised. Details of guarantees that Council has provided, that are not recognised in the balance sheet are disclosed at Note 36 Contingent Liabilities and Contingent Assets. FINANCIAL REPORT 112 Moreland City Council

NOTE 2 a) Income and expenditure

Budget comparison Budget Actual Variance Ref 2015 2015 2015 The budget comparison notes $’000 $’000 $’000 compare Council’s financial plan, expressed through its annual Revenue budget, with actual performance. Rates and charges 119,604 122,847 3,243 1 The Local Government (Planning and Reporting) Regulations 2014 Statutory fees and fines 8,572 8,873 301 requires explanation of any material User fees 6,915 8,410 1,495 2 variances. Council has adopted Grants – operating 15,649 19,479 3,830 3 a materiality threshold of the lower Grants – capital 760 661 (99) of 10 per cent or $3m where further explanation is warranted. Contributions – cash 4,600 9,750 5,150 4 Explanations have not been Contributions – provided for variations below non-monetary assets – 5,978 5,978 5 the materiality threshold unless Net gain / (loss) on disposal the variance is considered to be of property, infrastructure, material because of its nature. plant and equipment – (1,917) (1,917) 6 The budget figures detailed below Fair value adjustments are those adopted by Council for investment property – 3,113 3,113 7 on 9 July 2014. The budget was Other income 5,773 6,535 762 8 based on assumptions that were relevant at the time of adoption of Total revenues 161,873 183,728 21,855 the budget. Council sets guidelines and parameters for revenue and expense targets in this budget in Expenses order to meet Council’s planning Employee costs 75,187 72,863 2,324 9 and financial performance targets Materials and services 46,250 51,562 (5,312) 10 for both the short and long-term. Bad and doubtful debts 1,199 1,472 (273) 11 The budget did not reflect any changes to equity resulting from Depreciation and amortisation 20,830 21,369 (539) asset revaluations, as their impacts Finance costs 3,398 2,332 1,066 12 were not considered predictable. Other expenses 431 67 364 These notes are prepared to Share of net (profits) / meet the requirements of the losses of associates – 2 (2) Local Government Act 1989 and the Local Government (Planning Total expenses 147,295 149,669 (2,374) and Reporting) Regulations 2014.

Net surplus (deficit) 14,578 34,059 19,481 ANNUAL REPORT 113 2014 – 2015

i) Explanation of material variations

Ref Item Explanation

1 Rates and charges Variance is attributed to supplementary rates $400k higher than expected as well as an unbudgeted $1.2m special charge relating to the construction of Pentridge Boulevard. 2 User fees Management fees generated from the YMCA attached to running leisure centres throughout Moreland was higher than budget coupled with a better than budget result in garbage charges. 3 Grants – operating This variance is due to Council receiving $2.5m of the 2015/16 Victorian Grants Commission operating grant prior to year end. 4 Contributions – cash Sub-divider contributions were higher than anticipated due to increased development activities. 5 Contributions – This variance is due to the recognition of donated assets from completed developments non-monetary assets during the year for which Council has now accepted on-going responsibility. 6 Net gain/(loss) on Council sold all shares of the RFK Pty Ltd and the Regional Kitchen Pty Ltd entities disposal of property, during the year, recording a loss of $1.2m. infrastructure, plant and equipment 7 Fair value adjustments Market valuations undertaken for Council’s investment properties by qualified valuers, for investment property resulted in this overall increase. 8 Other income Council achieved $165k higher than budget for legal costs recovered and $153k better result in interest earned on investments. 9 Employee costs Employee costs are below budget due to vacant positions and an allowance was made within the budget for defined benefit contributions. 10 Materials and services The primary reasons for this variance are the approved use of agency staff to fill staff vacancies, higher than budgeted consultancy costs and expenditure originally budgeted as part of the capital program which were actually operating in nature. 11 Bad and At balance date debtors were assessed for recoverability. As a result the provision doubtful debts increase for parking debtors was higher than budget primarily due to a higher than anticipated number of parking fines in excess of the statutory lodgement period. 12 Finance costs Council has taken up the opportunity of transferring some loans to the MAV funding vehicle obtaining a saving in interest costs as a result. FINANCIAL REPORT 114 Moreland City Council

NOTE 2 (CONT’D) b) Capital works

Budget 2015, $’000 Actual 2015 $’000 Variance 2015 $’000 Ref

Property Land 3,555 8,244 (4,689) 1 Total land 3,555 8,244 (4,689) Buildings 8,182 13,057 (4,875) 2 Total buildings 8,182 13,057 (4,875) Total property 11,737 21,301 (9,564)

Plant and equipment Plant, machinery and equipment 1,100 1,739 (639) 3 Fixtures, fittings and furniture 115 96 19 Computers and telecommunications 998 942 56 Library books 946 946 0 Total plant and equipment 3,159 3,722 (563)

Infrastructure Roads 10,010 5,556 4,454 4 Bridges 870 262 608 5 Footpaths and cycleways 1,900 2,439 (539) 6 Drainage 1,339 2,464 (1,125) 7 Other infrastructure 6,221 6,114 107 Total infrastructure 20,340 16,835 3,505 Total capital works expenditure 35,236 41,858 (6,622)

Represented by: New asset expenditure 14,658 21,036 (6,378) 9 Asset renewal expenditure 13,492 15,550 (2,058) 10 Asset expansion expenditure – 665 (665) 11 Asset upgrade expenditure 7,086 4,607 2,479 12 Total capital works expenditure 35,236 41,858 (6,622) ANNUAL REPORT 115 2014 – 2015

i) Explanation of material variations

Ref Item Explanation

1 Land The purchase of land near the Northern Golf Club was budgeted over the last two years, accounting for the deposit and settlement. Upon settlement the total value was capitalised in the current financial year. 2 Buildings Council made a strategic purchase of buildings near the current location of the depot in Hadfield. Additionally, buildings near CB Smith Reserve budgeted over the last couple of years were capitalised. 3 Plant, machinery The purchase of several vehicles and maintenance equipment were slightly higher and equipment than anticipated. 4 Roads Some road projects were incomplete at year end, requiring costs of approximately $2m to be included in work in progress. Additionally, there was significant expenditure originally budgeted as part of the capital program which was actually operating in nature. 5 Bridges A bridge construction project was delayed to enable further community involvement in the design process. 6 Footpaths As part of a mid-year review Council allocated additional monies to footpaths and and cycleways cycleways from savings made in delays to other projects. 7 Drainage Council budget to reconstruct and rehabilitate roads ($1.8m of total roads budget). As part of these projects, a significant portion of this expenditure is capitalised as drainage assets. 8 New asset Council commissioned unbudgeted expenditure on land near the Northern Golf Club expenditure and buildings in Hadfield. Further expenditure on buildings at CB Smith reserve were capitalised from works in progress. 9 Asset renewal Associated with over expenditure in buildings and footpaths of a renewable nature. expenditure 10 Asset expansion Expenditure works originally classified as renewal type were actually of an expenditure expansion nature. 11 Asset upgrade The lower than budget result can be attributed to the bridge construction project being expenditure delayed to enable further community involvement in the design process, plus delays in a streetscape project on Pascoe Vale Road. Gowanbrae

NOTE 3 Rates and charges Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipal district. The CIV of a property is the total market value of the land plus buildings and other improvements. The valuation base used to calculate general rates for 2014/2015 was $39.160 billion (2013/2014 $36.501 billion). The 2014/2015 rate in the CIV dollar was 0.002784 (2013/2014, 0.002811).

2015 $’000 2014 $’000

General rates 110,186 102,848

Supplementary rates 1,423 1,868 and rate adjustments

Waste management charge 9,458 9,091

Special rates and charges 1,780 461

Total rates and charges 122,847 114,268

The date of the latest general revaluation of land for rating purposes within the municipal district was 1 January 2014, and the valuation was first applied in the rating year commencing 1 July 2014. ANNUAL REPORT 117 2014 – 2015

NOTE 4 NOTE 5 Statutory fees and fines User fees

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Infringements and costs 5,618 5,368 Parking 258 233

PERIN court recoveries 296 293 Aged services fees 2,102 2,162

Town planning fees 1,135 1,266 Registration fees 1,246 1,013

Land information certificates 125 116 Road occupancy charges 353 244

Other fines 344 362 Building services 551 492

Valuation fees / 252 85 Permits 1,355 1,269 supplementary charges

Waste management services 991 1,130 Total statutory fees and fines 8,873 8,674

Right of way closures 190 102

Other fees 2,467 1,319

Total user fees 8,410 6,780 FINANCIAL REPORT 118 Moreland City Council

NOTE 6 Grants Grants were received in respect of the following:

2015 $’000 2014 $’000

Summary of grants Commonwealth-funded grants 10,186 4,747 State-funded grants 9,953 12,954 Total 20,140 17,701

Operating grants Recurrent – Commonwealth Government Victorian Grants Commission – general purpose 7,630 2,715 Victorian Grants Commission – local roads 1,362 450 Families and children 181 784 Family day care 555 – Other culture 14 – Recurrent – State Government Home help 5,905 5,819 Maternal and child health 1,306 1,318 Recreation 10 – Aged care 150 – Libraries 968 974 Families and children 182 621 Family day care 17 – Food services 641 588 School crossing supervisors – 187 Community health 58 – Community safety 12 – Community welfare 300 – Drug strategy development – 28 Business and economic services 12 57 Access for all abilities 122 117 Total recurrent operating grants 19,425 13,658

Non-recurrent – Commonwealth Government Environment protection – 332 Non-recurrent – State Government Recreation 25 – Business and economic services 12 60 Local roads and bridges 3 – Other culture 5 – Community welfare 9 46 Total non-recurrent operating grants 54 438 Total operating grants 19,479 14,097 ANNUAL REPORT 119 2014 – 2015

NOTE 6 (CONT’D) 2015 $’000 2014 $’000

Capital grants Recurrent – Commonwealth Government Roads to recover 444 466 Total recurrent capital grants 444 466

Non-recurrent – State Government Recreation 42 590 Community welfare – 1,037 Families and children – 650 Environment protection – 861 Libraries 74 – Other culture 10 – Community safety 90 – Total capital non-recurrent 216 3,138 Total capital grants 661 3,604

Conditions on grants Grants recognised as revenue during the year that were obtained on condition that they be expended in a specified manner that had not occurred at balance date were: 595 1,837 Grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were: (2,324) (709)

Net increase / (decrease) in restricted assets resulting from grant revenues for the year: (1,729) 1,128

NOTE 7 NOTE 8 Contributions Net gain / (loss) on disposal of property, infrastructure, plant and equipment 2015 2014 $’000 $’000 2015 2014 $’000 $’000 Monetary 9,750 5,152 Non-monetary 5,978 1,772 Proceeds of sale 566 755 Total contributions 15,728 6,924 Write down of investments held in associates (Note 16) (1,278) – Contributions of non monetary Write down of assets disposed (1,205) (672) assets were received in relation Total (1,917) 83 to the following asset classes Land under roads 1,476 – Infrastructure 4,502 1,772 5,978 1,772 FINANCIAL REPORT 120 Moreland City Council

NOTE 9 NOTE 10 (A) Other income Employee costs

2015 2014 2015 2014 $’000 $’000 $’000 $’000 Interest 1,716 1,790 Wages and salaries 56,098 55,133 Investment property rental 436 424 Workcover 2,073 1,707 Other rent 1,796 1,759 Casual staff 394 478 Sale of non plant and equipment 57 66 Annual leave and long service leave 6,306 7,021 Legal costs 395 225 Superannuation 5,738 5,607 Payroll reimbursements 168 165 Fringe benefits tax 140 167 Other 1,966 1,586 Other 2,115 1,701 Total other income 6,535 6,015 Total employee costs 72,863 71,815

NOTE 10 (B)

Superannuation Council made contributions to the following funds:

2015 $’000 2014 $’000 Defined benefit fund Employer contributions to Local Authorities Superannuation Fund (Vision Super) 882 901 Employer contributions – other funds – – 882 901 Employer contributions payable at reporting date – –

Accumulation funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) 3,463 3,479 Employer contributions – other funds 1,391 1,228 4,854 4,707 Employer contributions payable at reporting date – 619

Moreland City Council makes the majority of its employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). Obligations for contributions to the Fund are recognised as an expense in the Comprehensive Income Statement when they are due. The Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently.

Accumulation The Fund’s accumulation category, Vision Super Saver, receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9.5% required under Superannuation Guarantee Legislation, (2013/14 9.25%)). ANNUAL REPORT 121 2014 – 2015

NOTE 10 (B) (CONT’D)

Defined Benefit Plan Moreland City Council does not use defined benefit accounting for its defined benefit obligations under the Fund’s Defined Benefit category. This is because the Fund’s Defined Benefit category is a multi-employer sponsored plan. There is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as the defined benefit obligation is a floating obligation between the participating employers and the only time that the aggregate obligation is allocated to specific employers is when a call is made. As a result, the level of participation of Moreland City Council in the Fund cannot be measured as a percentage compared with other participating employers. Therefore, the Actuary is unable to allocate benefit liabilities, assets and costs between employers for the purposes of AASB 119.

NOTE 11 NOTE 13 Materials and services Depreciation

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Utilities 3,990 3,977 Property 4,293 5,256 Contractors 10,465 9,039 Plant and equipment 3,791 3,950 Works contracts 77 81 Infrastructure 13,285 13,764

General services 20,577 20,466 Total depreciation 21,369 22,969 Office services and supplies 5,396 5,093 Other supplies 2,278 2,338 Refer to note 23 for a more detailed breakdown of depreciation Materials 303 302 Minor equipment and medical supplies 1,247 1,375 Other related costs 2,125 1,738 NOTE 14 Property leases and rentals 1,008 1,069 Borrowing costs Fire Services Property Levy 170 165 Council grants and sponsorships 2,400 1,517 Interest – borrowings 2,332 2,285 Insurance 1,526 1,550 Total borrowing costs 2,332 2,285 Total materials and services 51,562 48,710

NOTE 12 NOTE 15 Bad and doubtful debts Other expenses

Parking fine debtors 1,209 1,228 Auditors' remuneration 60 68 Other debtors 263 220 Councillors' allowances 7 (1)

Total bad and doubtful debts 1,472 1,448 Total other expenses 67 67 FINANCIAL REPORT 122 Moreland City Council

NOTE 16 Investment in associates and subsidiaries

2015 $’000 2014 $’000

Investments in associates accounted for by the equity method are: »» RFK Pty Ltd Trading as Community Chef – – »» Regional Kitchen Pty. Ltd – 1,280 Council’s total share in investment in associates – 1,280

Background Investments in associates accounted for by the equity method are: »» RFK Pty. Ltd. – Council held a 0% share of ownership at balance date »» Regional Kitchen Pty. Ltd. – Council held a 0% share of ownership at balance date

As at 29 May 2015 RFK Pty Ltd and Regional Kitchen Pty Ltd agreed to approve a share buy back of Council’s remaining shares. Council sold 90 ordinary shares of RFK Pty Ltd and 20 ordinary shares of Regional Kitchen Pty Ltd.

RFK Pty Ltd Trading as Community Chef – 0% (based on % of total shares held) Council’s share of accumulated surplus / (deficit) Council’s share of accumulated surplus / (deficit) at start of year – – Reported surplus / (deficit) for year – – Council’s share of accumulated surplus / (deficit) at end of year – –

Movement in carrying value of specific investment Carrying value of investment at start of year – – Share of surplus / (deficit) for period of ownership – – Carrying value of investment at end of year – –

Council’s share of expenditure commitments Operating commitments – – – –

Regional Kitchen Pty Ltd – 0% Council's share of accumulated surplus / (deficit) Council's share of accumulated surplus / (deficit) at start of year 1,080 1,098 Reported surplus / (deficit) for the period (2) (18) Share of asset revaluation – reduction in % of ownership (6.58% to 0%) (1,078) – Council's share of accumulated surplus(deficit) at end of year – 1,080

Movement in carrying value of specific investment Carrying value of investment at start of year 1,280 1,298 Share of surplus / (deficit) for period of ownership (2) (18) Sale of Shares (1,278) – Distributions received – – Carrying value of investment at end of year – 1,280 ANNUAL REPORT 123 2014 – 2015

NOTE 16 (CONT’D) 2015 $’000 2014 $’000

Council's share of expenditure commitments Operating commitments – 49 Capital commitments – – – 49 Council's overall movement in investment in associates for the year was: (2) (18) Total (2) (18)

NOTE 17 NOTE 18 Cash and cash equivalents Trade and other receivables

2015 2014 2015 2014 $’000 $’000 $’000 $’000 Cash on hand 18 12 Current Cash at bank 5,521 2,321 Rates debtors 11,272 10,602 Term deposits Parking infringement debtors 5,477 4,966 (maturity < 90 days) 20,700 18,200 Provision for doubtful Total cash and cash equivalents 26,239 20,533 debts – parking infringements (3,328) (3,102) Other debtors 3,531 3,876 Term deposits Provision for doubtful (maturity > 90 days) (See note 19) 17,700 11,000 debts – other debtors (1,084) (828) Fire Services Property Total cash and cash equivalents Levy debtors 1,191 931 and other financial assets 43,939 31,533 Net GST receivable 1,521 1,350 Total trade and other receivables 18,580 17,794 Councils cash and cash equivalents and other financial assets are subject to external restrictions that limit amounts available for discretionary use. These include: a) Ageing of receivables

Trust funds and deposits (Note 26) 1,545 1,388 At balance date other debtors representing financial assets were past due but not impaired. These amounts Total restricted funds 1,545 1,388 relate to a number of independent customers for whom Total unrestricted cash there is no recent history of default. The ageing of and cash equivalents the Council’s trade and other receivables (excluding and other financial assets 42,394 30,145 statutory receivables) was:

Intended allocations Current (not yet due) 1,057 1,484 Although not externally restricted the following Past due by up to 30 days 697 895 amounts have been allocated for specific future Past due between purposes by Council: 31 and 180 days 475 159 Past due between »» Restricted Reserves (Note 29) 11,942 7,947 181 and 365 days 35 440 Past due by more than 1 year 182 70 Total funds subject to intended allocations 11,942 7,947 Total trade and other receivables 2,446 3,048 FINANCIAL REPORT 124 Moreland City Council

NOTE 18 (CONT’D) NOTE 19 2015 2014 Other financial assets $’000 $’000 2015 2014 b) Movement in provisions for doubtful debts $’000 $’000

Balance at the beginning of the year 828 615 Current New provisions recognised Term deposits 17,700 11,000 during the year 263 255 Total 17,700 11,000 Amounts already provided for and written off as uncollectable 6 8 Amounts provided for but recovered during the year (12) (50)

Balance at end of year 1,084 828 NOTE 20 Inventories c) Ageing of individually impaired receivables Inventories held for distribution 222 127 At balance date, other debtors representing Total inventories 222 127 financial assets with a nominal value of $1,084,347 (2014: $827,505) were impaired. The amount of the provision raised against these debtors was $1,084,347 (2014: $827,505). The individually have been impaired as a result of their doubtful collection. Many of the long outstanding past NOTE 21 due amounts have been lodged with Council’s debt collectors or are on payment arrangements. Non-current assets classified as held for sale

The ageing of receivables that have been 2015 2014 individually determined as impaired at $’000 $’000 reporting date was: Balance at beginning Current (not yet due) – – of financial year 349 – Past due by up to 30 days 4 – Disposals during year (349) – Past due between 31 Transfers to assets held for sale 2,008 349 and 180 days 199 46 Total non-current assets Past due between 181 classified as held for sale 2,008 349 and 365 days 147 205 Past due by more than 1 year 734 577 Assets held for sale are carried at fair value less cost of disposal. The following table provides to Councils fair Total trade and other receivables 1,084 828 value measurement hierarchy for assets held for sale:

Level 1 Level 2 Level 3 Land – 1,846 – Buildings – 162 – Total – 2,008 – ANNUAL REPORT 125 2014 – 2015

NOTE 22 Other assets 2015 2014 $’000 $’000 Current Accrued income 62 149 Other 5 5 Total 67 154

NOTE 23 Property, infrastructure, plant and equipment

2015 $’000 2014 $’000

Property Land at cost 940,662 934,264 940,662 934,264

Land under roads at Council valuation 3,314 1,838 3,314 1,838 Total land 943,975 936,102

Buildings at cost 178,232 165,358 Less accumulated depreciation (4,273) – 173,960 165,358

Property works in progress Buildings at cost 2,669 6,537 2,669 6,537 Total property 1,120,604 1,107,997

Plant and equipment Motor vehicles at cost 15,362 14,655 Less accumulated depreciation (10,389) (9,540) 4,974 5,115 FINANCIAL REPORT 126 Moreland City Council

NOTE 23 (CONT’D) 2015 $’000 2014 $’000

Plant and equipment at cost 4,295 4,019 Less accumulated depreciation (2,893) (2,638) 1,402 1,381

Furniture and fittings at cost 1,942 1,907 Less accumulated depreciation (1,604) (1,554) 338 354

Computer equipment at cost 18,362 17,439 Less accumulated amortisation (16,805) (15,718) 1,558 1,721

Library books at cost 13,410 12,464 Less accumulated depreciation (9,040) (8,232) 4,370 4,232

Artworks at cost 747 737 747 737

Plant and equipment works in progress Other plant and equipment at cost 2,038 254 2,038 254 Total plant and equipment 15,427 13,794 ANNUAL REPORT 127 2014 – 2015

NOTE 23 (CONT’D) 2015 $’000 2014 $’000

Infrastructure Road surface at cost 58,598 55,867 Less accumulated depreciation (16,039) (14,242) 42,559 41,625

Road pavement at cost 311,427 307,238 Less accumulated depreciation (136,435) (133,836) 174,992 173,402

Drains at cost 135,795 132,740 Less accumulated depreciation (52,588) (51,394) 83,206 81,346

Footpaths at cost 103,146 100,203 Less accumulated depreciation (51,369) (48,958) 51,777 51,245

Kerb and channel at cost 73,032 72,088 Less accumulated depreciation (43,786) (42,962) 29,246 29,126

Bridges at cost 18,874 18,641 Less accumulated depreciation (6,216) (5,998) 12,658 12,643

Other structures at cost 91,305 84,936 Less accumulated depreciation (43,037) (39,354) 48,268 45,582

Infrastructure works in progress Infrastructure at cost 4,285 8,767 4,285 8,767 Total infrastructure 446,992 443,736 Total property, infrastructure, plant and equipment 1,583,023 1,565,528 FINANCIAL REPORT 128 Moreland City Council

NOTE 23 (CONT’D)

Land and buildings

Land Land – non Land Total Buildings – Buildings Total Work in Total – specialised specialised under roads land specialised – non specialised buildings progress property

At fair value 1 July 2014 763,311 170,953 1,838 936,102 165,358 – 165,358 6,537 1,107,997 Accumulated depreciation at 1 July 2014 – – – – – – – – –

763,311 170,953 1,838 936,102 165,358 – 165,358 6,537 1,107,997

Movements in fair value Acquisition of assets at fair value 8,244 – 1,476 9,720 13,057 – 13,057 – 22,777

Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed – (349) – (349) – – – – (349)

Impairment losses recognised in operating result – – – – – – – – – Transfers – (1,497) – (1,497) (183) – (183) (3,868) (5,547) 8,244 (1,846) 1,476 7,874 12,874 – 12,874 (3,868) 16,880

Movements in accumulated depreciation Depreciation and amortisation – – – – (4,293) – (4,293) – (4,293)

Revaluation increments/decrements – – – – – – – – –

Accumulated depreciation of disposals – – – – – – – – –

Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – 21 – 21 – 21 – – – – (4,273) – (4,273) – (4,273)

At fair value 30 June 2015 771,555 169,107 3,314 943,975 178,232 – 178,232 2,669 1,124,877 Accumulated depreciation at 30 June 2015 – – – – (4,273) – (4,273) – (4,273)

771,555 169,107 3,314 943,975 173,960 – 173,960 2,669 1,120,604 Brunswick Library

Land Land – non Land Total Buildings – Buildings Total Work in Total – specialised specialised under roads land specialised – non specialised buildings progress property

At fair value 1 July 2014 763,311 170,953 1,838 936,102 165,358 – 165,358 6,537 1,107,997 Accumulated depreciation at 1 July 2014 – – – – – – – – –

763,311 170,953 1,838 936,102 165,358 – 165,358 6,537 1,107,997

Movements in fair value Acquisition of assets at fair value 8,244 – 1,476 9,720 13,057 – 13,057 – 22,777

Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed – (349) – (349) – – – – (349)

Impairment losses recognised in operating result – – – – – – – – – Transfers – (1,497) – (1,497) (183) – (183) (3,868) (5,547) 8,244 (1,846) 1,476 7,874 12,874 – 12,874 (3,868) 16,880

Movements in accumulated depreciation Depreciation and amortisation – – – – (4,293) – (4,293) – (4,293)

Revaluation increments/decrements – – – – – – – – –

Accumulated depreciation of disposals – – – – – – – – –

Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – 21 – 21 – 21 – – – – (4,273) – (4,273) – (4,273)

At fair value 30 June 2015 771,555 169,107 3,314 943,975 178,232 – 178,232 2,669 1,124,877 Accumulated depreciation at 30 June 2015 – – – – (4,273) – (4,273) – (4,273)

771,555 169,107 3,314 943,975 173,960 – 173,960 2,669 1,120,604 FINANCIAL REPORT 130 Moreland City Council

NOTE 23 (CONT’D)

Plant and equipment

Motor Plant and Furniture and Computer Library Plant and Work in Total plant and Artwork vehicles equipment fittings equipment books equipment progress equipment

At fair value 1 July 2014 14,655 4,019 1,907 17,439 12,464 737 51,221 254 51,475 Accumulated depreciation at 1 July 2014 (9,540) (2,638) (1,554) (15,718) (8,232) – (37,681) – (37,681) 5,115 1,381 354 1,721 4,232 737 13,540 254 13,794

Movements in fair value Acquisition of assets at fair value 1,449 290 86 942 946 10 3,722 – 3,722 Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed (741) (14) (51) (19) – – (825) – (825) Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – 1,784 1,784 708 276 35 923 946 10 2,897 1,784 4,681

Movements in accumulated depreciation Depreciation and amortisation (1,544) (266) (68) (1,105) (808) – (3,791) – (3,791) Revaluation increments/decrements – – – – – – – – – Accumulated depreciation of disposals 695 11 18 18 – – 742 – 742 Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – – – (849) (255) (50) (1,087) (808) – (3,049) – (3,049)

At fair value 30 June 2015 15,362 4,295 1,942 18,362 13,410 747 54,119 2,038 56,156

Accumulated depreciation at 30 June 2015 (10,389) (2,893) (1,604) (16,805) (9,040) – (40,730) – (40,730) 4,974 1,402 338 1,558 4,370 747 13,389 2,038 15,427 Cafe in Hadfield

Motor Plant and Furniture and Computer Library Plant and Work in Total plant and Artwork vehicles equipment fittings equipment books equipment progress equipment

At fair value 1 July 2014 14,655 4,019 1,907 17,439 12,464 737 51,221 254 51,475 Accumulated depreciation at 1 July 2014 (9,540) (2,638) (1,554) (15,718) (8,232) – (37,681) – (37,681) 5,115 1,381 354 1,721 4,232 737 13,540 254 13,794

Movements in fair value Acquisition of assets at fair value 1,449 290 86 942 946 10 3,722 – 3,722 Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed (741) (14) (51) (19) – – (825) – (825) Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – 1,784 1,784 708 276 35 923 946 10 2,897 1,784 4,681

Movements in accumulated depreciation Depreciation and amortisation (1,544) (266) (68) (1,105) (808) – (3,791) – (3,791) Revaluation increments/decrements – – – – – – – – – Accumulated depreciation of disposals 695 11 18 18 – – 742 – 742 Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – – – (849) (255) (50) (1,087) (808) – (3,049) – (3,049)

At fair value 30 June 2015 15,362 4,295 1,942 18,362 13,410 747 54,119 2,038 56,156

Accumulated depreciation at 30 June 2015 (10,389) (2,893) (1,604) (16,805) (9,040) – (40,730) – (40,730) 4,974 1,402 338 1,558 4,370 747 13,389 2,038 15,427 FINANCIAL REPORT 132 Moreland City Council

NOTE 23 (CONT’D)

Infrastructure

Road Road Kerb and Bridges/ Other Work in Total Drainage Footpaths surface pavement channel retaining walls infrastructure progress infrastructure

At fair value 1 July 2014 55,867 307,238 132,740 100,203 72,088 18,641 84,936 8,767 780,480 Accumulated depreciation at 1 July 2014 (14,242) (133,836) (51,394) (48,958) (42,962) (5,998) (39,354) – (336,744) 41,625 173,402 81,346 51,245 29,126 12,643 45,582 8,767 443,736

Movements in fair value Acquisition of assets at fair value 2,811 4,685 3,738 3,125 1,094 262 6,544 – 22,258 Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed (80) (496) (683) (182) (149) (29) (175) – (1,794) Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – (4,482) (4,482) 2,731 4,189 3,054 2,943 944 234 6,369 (4,482) 15,983

Movements in accumulated depreciation Depreciation and amortisation (1,789) (2,819) (1,331) (2,456) (913) (227) (3,750) – (13,285) Acquisition of assets at fair value (24) (161) (185) (46) (17) – (9) – (441) Revaluation increments/decrements – – – – – – – – – Accumulated depreciation of disposals 16 381 322 90 106 9 76 – 999 Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – – – (1,797) (2,599) (1,194) (2,411) (824) (218) (3,683) – (12,727)

At fair value 30 June 2015 58,598 311,427 135,795 103,146 73,032 18,874 91,305 4,285 796,463 Accumulated depreciation at 30 June 2015 (16,039) (136,435) (52,588) (51,369) (43,786) (6,216) (43,037) – (349,471) 42,559 174,992 83,206 51,777 29,246 12,658 48,268 4,285 446,992 Computer classes at the library

Road Road Kerb and Bridges/ Other Work in Total Drainage Footpaths surface pavement channel retaining walls infrastructure progress infrastructure

At fair value 1 July 2014 55,867 307,238 132,740 100,203 72,088 18,641 84,936 8,767 780,480 Accumulated depreciation at 1 July 2014 (14,242) (133,836) (51,394) (48,958) (42,962) (5,998) (39,354) – (336,744) 41,625 173,402 81,346 51,245 29,126 12,643 45,582 8,767 443,736

Movements in fair value Acquisition of assets at fair value 2,811 4,685 3,738 3,125 1,094 262 6,544 – 22,258 Revaluation increments/decrements – – – – – – – – – Fair value of assets disposed (80) (496) (683) (182) (149) (29) (175) – (1,794) Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – (4,482) (4,482) 2,731 4,189 3,054 2,943 944 234 6,369 (4,482) 15,983

Movements in accumulated depreciation Depreciation and amortisation (1,789) (2,819) (1,331) (2,456) (913) (227) (3,750) – (13,285) Acquisition of assets at fair value (24) (161) (185) (46) (17) – (9) – (441) Revaluation increments/decrements – – – – – – – – – Accumulated depreciation of disposals 16 381 322 90 106 9 76 – 999 Impairment losses recognised in operating result – – – – – – – – – Transfers – – – – – – – – – (1,797) (2,599) (1,194) (2,411) (824) (218) (3,683) – (12,727)

At fair value 30 June 2015 58,598 311,427 135,795 103,146 73,032 18,874 91,305 4,285 796,463 Accumulated depreciation at 30 June 2015 (16,039) (136,435) (52,588) (51,369) (43,786) (6,216) (43,037) – (349,471) 42,559 174,992 83,206 51,777 29,246 12,658 48,268 4,285 446,992 FINANCIAL REPORT 134 Moreland City Council

NOTE 23 (CONT’D)

Valuation of land and buildings A revaluation is necessary when the fair value of each revalued class of asset differs materially from its carrying amount at balance date. Irene Margaritis AAPI, a certified practicing valuer of Westlink Consulting, has completed a review of the carrying amount of land and building assets as at 30 June 2015. The valuation of buildings is at fair value based on current replacement cost less accumulated depreciation at the date of valuation. The valuation of land is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. All freehold land reserved for public open space is valued at a discount of 10 per cent to market value based on legal precedents. The review methodology included analysis of recent land and building sales to determine the movement in values as displayed by the market. Council has accepted the review guidance of the valuer, which concluded that the movement in value of Council land and building assets since the last valuation undertaken at 30 June 2014 is not material.

Valuation of land under roads Land under roads is valued at fair value. Fair value is based on Council valuations for land under roads in existence at the date acquired for subsequent acquisitions using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services. Council in its policy on land under roads has agreed not to bring to account the value of land under roads in existence prior to 30 June 2008. Any significant movements in the unobservable inputs for land and land under roads will have a significant impact on the fair value of these assets. Details of the Council’s land and buildings and information about the fair value hierarchy as at 30 June 2015 are as follows:

Level 1 Level 2 Level 3 Land – non specialised – 169,107 – Land – specialised 771,555 Land under roads – – 3,314 Buildings – – 173,960 Total – 169,107 948,828

No transfers between levels occurred during the year. ANNUAL REPORT 135 2014 – 2015

NOTE 23 (CONT’D)

Valuation of infrastructure Fair value assessments have been performed at 30 June 2015 for Infrastructure. This assessment demonstrated that fair value was materially similar to carrying value, and therefore a full revaluation was not required this year. The next scheduled full revaluation for this purpose will be conducted in 2015/16. The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation. Details of the Council’s infrastructure assets and information about the fair value hierarchy as at 30 June 2014 are as follows:

Level 1 Level 2 Level 3 Roads – – 217,552 Bridges – – 12,658 Drains – – 83,206 Footpaths – – 51,777 Kerb and channel – – 29,246 Other structures – – 48,268 Total – – 442,707

No transfers between levels occurred during the year.

Description of significant unobservable inputs into level 3 valuations Specialised land and land under roads The market based direct comparison method is used for specialised land although is adjusted to reflect the specialised nature of the assets being valued. Significant unobservable inputs include the extent and impact of restriction of use and the market cost of land per square metre. The extent and impact of restrictions on use varies and results in a reduction to surrounding land values between 5 per cent and 95 per cent. The market value of land varies significantly depending on the location of the land and the current market conditions. Currently land values range between $20 and $3,164 per square metre. FINANCIAL REPORT 136 Moreland City Council

NOTE 23 (CONT’D)

Specialised buildings Specialised buildings are valued using a depreciated replacement cost technique. Significant unobservable inputs include the current replacement cost and remaining useful lives of buildings. Current replacement costs is calculated on a square metre basis and ranges from $80 to $54,000 per square metre. The remaining useful lives of buildings are determined on the basis of the current condition of buildings and vary from 1 year to 99 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of buildings are sensitive to changes in expectations or requirements that could either shorten or extend the useful lives of buildings.

Infrastructure assets Infrastructure assets are valued based on the depreciated replacement cost. Significant unobservable inputs include the current replacement cost and remaining useful lives of infrastructure. The remaining useful lives of infrastructure asses are determined on the basis of the current condition of the asset and vary from 4 years to 99 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of infrastructure are sensitive to changes in use, expectations or requirements that could either shorten or extend the useful lives of infrastructure assets.

Reconciliation of specialised land 2015 $’000 2014 $’000

Land under roads 3,314 1,839

Parks and reserves 771,555 763,311

Total specialised land 774,869 765,150 Community tree planting NOTE 24 Investment property

2015 $’000 2014 $’000

Balance at beginning of financial year 26,696 24,650

Fair value adjustments 3,113 2,046

Balance at end of financial year 29,809 26,696

Valuation of investment property Independent valuations of investment properties were performed at 30 June 2015 by Brendan Sheales (AAPI) and Irene Margaritis (AAPI), certified practicing valuers of Westlink Consulting who have recent experience in the location and category of the property being valued. The valuation is at fair value, based on the current market value for the property.

NOTE 25 Trade and other payables

Current

Trade payables 7,137 6,602

Accrued expenses 9,038 7,247

Total trade and other payables 16,175 13,849 Coburg Carnivale

NOTE 26 NOTE 27 Trust funds and deposits Provisions

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Refundable deposits 364 401 a) Employee provisions Trust funds 621 614 Retention amounts 354 199 Current provisions expected to be settled within 12 months Fire services levy 116 26 Annual leave 4,599 4,754 Other refundable deposits 90 148 Long service leave 1,594 1,566 Total trust funds and deposits 1,545 1,388 6,193 6,320

Council currently maintains separate and distinct trust Current provisions expected funds for the Gavin Environment Trust, the Blackburn to be settled after 12 months Bequest Trust and the Inner Circle Linear Trust. These funds are held and administered in accordance with the Annual leave 707 798 trust deed arrangements. Long service leave 9,768 9,566 Refundable deposits – deposits are taken by Council as Service gratuity 30 35 a form of surety in a number of circumstances, including Other 33 33 in relation to building works, contract deposits and the 10,538 10,432 use of civic facilities. Fire Service Levy – Council is the collection agent for fire Total current provisions 16,731 16,752 services levy on behalf of the State Government. Council remits amounts received on a quarterly basis. Amounts disclosed here will be remitted to the state government Non-current in line with that process. Long service leave 1,401 1,487 Retention amounts – Council has a contractual right to 1,401 1,487 retain certain amounts until a contractor has met certain requirements or a related warrant or defect period has elapsed. Subject to the satisfactory completion of the contractual obligations, or the elapsing of time, these amounts will be paid to the relevant contractor in line with Council’s contractual obligations. ANNUAL REPORT 139 2014 – 2015

NOTE 27 (CONT’D) NOTE 28 Interest-bearing loans and borrowings

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Aggregate carrying amount of employee provisions: Current Bank overdraft – – Current 16,731 16,752 Borrowings – secured 12,570 1,891 Non-current 1,401 1,487 12,570 1,891 18,132 18,239

Non-current The following assumptions were adopted in Borrowings – secured 36,797 49,726 measuring the present value of employee benefits:

Total 49,367 51,617 Weighted average increase 4.44% 4.44% in employee costs The maturity profile for Council’s borrowings is: Weighted average discount rates 3.03% 3.57%

Weighted average 17 yrs 17 yrs Not later than one year 12,570 1,891 settlement period Later than one year and not later than five years 19,886 27,936 Later than five years 16,911 21,790 Total 49,367 51,617

Aggregate carrying amount of interest-bearing loans and borrowings:

Current 12,570 1,891 Non-current 36,797 49,726 Total interest-bearing loans and borrowings 49,367 51,617 FINANCIAL REPORT 140 Moreland City Council

NOTE 29 Reserves a) Asset revaluation reserves

Balance at Increment Share of increment Balance beginning (decrement) (decrement) on at end of of reporting revaluation by reporting period an associate period

$’000 $’000 $’000 $’000

2015 Property Land 700,823 – – 700,823 Buildings 76,345 – – 76,345 777,168 – – 777,168

Infrastructure Road surface 42,156 – – 42,156 Road pavement 118,231 – – 118,231 Bridges 9,333 – – 9,333 Footpaths 31,929 – – 31,929 Drainage 47,589 – – 47,589 Kerb and channel 14,727 – – 14,727 Other structures 32,150 – – 32,150 296,115 – – 296,115 Total asset 1,073,283 – – 1,073,283 revaluation reserves

2014 Property Land 644,034 56,789 – 700,823 Buildings 70,643 5,702 – 76,345 714,677 62,491 – 777,168

Infrastructure Road surface 42,156 – – 42,156 Road pavement 118,231 – – 118,231 Bridges 9,333 – – 9,333 Footpaths 31,929 – – 31,929 Drainage 47,589 – – 47,589 Kerb and channel 14,727 – – 14,727 Other structures 32,150 – – 32,150 296,115 – – 296,115 Total asset revaluation reserves 1,010,792 62,491 – 1,073,283

The asset revaluation reserve is used to record the increased (net) value of Council's assets over time. ANNUAL REPORT 141 2014 – 2015

b) Other reserves

Balance at Increment Share of increment Balance beginning (decrement) (decrement) on at end of of reporting revaluation by reporting period an associate period

$’000 $’000 $’000 $’000

2015 Public resort and recreation land fund (restricted) 7,947 7,327 (3,333) 11,942 Housing strategy 614 – – 614 Moonee ponds creek development 240 – (61) 179 Leisure centre development reserve 616 1,695 (181) 2,129 Moreland Land and Property Reserve 554 360 (66) 849 Landfill reserve 279 761 – 1,040 Animal Management Services – 1,900 – 1,900 Total other reserves 10,250 12,044 (3,640) 18,653

2014 Public resort and recreation land fund (restricted) 5,900 5,422 (3,375) 7,947 Housing strategy 614 – – 614 Moonee Ponds Creek development 308 – (68) 240 Leisure centre development reserve 1,119 – (503) 616 Moreland Land and Property Reserve – 2,261 (1,707) 554 Landfill reserve – 279 – 279 Total Other reserves 7,941 7,962 (5,653) 10,250

The public resort and recreation land fund accumulates developers contributions paid to Council and is used to provide or improve recreation land and facilities. The housing strategy provides funds for the purchase of community housing projects along with other housing initiatives. The Moonee Ponds Creek development provides funds for the revitalisation of the Moonee Ponds Creek required because of freeway and CityLink works. The Moreland Land and Property Reserve represents surplus cash from land and property sales to enable the purchase of strategic land and property assets. The landfill reserve represents unused landfill expenditure budget that Council will use for future waste related initiatives. The Animal Management Services reserve provides funds for the setting up of an animal shelter. FINANCIAL REPORT 142 Moreland City Council

NOTE 30 NOTE 31 Reconciliation of cash flows from Reconciliation of cash operating activities to surplus or deficit and cash equivalents

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Surplus / (deficit) for the year 34,059 15,178 Cash and cash equivalents Depreciation 21,369 22,969 (see note 17) 26,239 20,533 (Profit) / loss on disposal Less bank overdraft – – of property, infrastructure, plant and equipment 640 (83) Total reconciliation of Movement in investment cash and cash equivalents 26,239 20,533 in associates 2 18 (Profit) / loss on disposal of investments in associates 1,278 – Fair value adjustments NOTE 32 for investment property (3,113) (2,046) Contributions – Financing arrangements non-monetary assets (5,978) (1,772) Finance costs 2,332 2,285 Bank overdraft 4,000 4,000 Infrastructure assets identified (477) – Used facilities – – Other 79 – Unused facilities 4,000 4,000 Change in assets and liabilities: (Increase) / decrease in trade and other receivables (786) (448) (Increase) / decrease in accrued income 87 29 Increase / (decrease) in trade and other payables 2,326 (13,093) (Increase) / decrease in inventories (95) (17) (Decrease) / increase in trust funds 157 10 (Decrease) / increase in provisions (107) 1,024

Net cash provided by / (used in) operating activities 51,773 24,054 ANNUAL REPORT 143 2014 – 2015

NOTE 33 Commitments The Council has entered into the following commitments

Not later Later than Later than Later than Total than 1 year 1 year and 2 years 5 years not later and not later than 2 years than 5 years

$’000 $’000 $’000 $’000 $’000

2015 Operating Garbage collection 130 134 424 – 688 Administration 696 189 585 – 1,470 IT systems support 1,064 920 1,319 – 3,303 Recycling 3,969 4,167 4,376 – 12,512 Social services 98 98 42 – 239 Consultancies 646 551 1,238 – 2,435 Libraries 146 43 10 – 199 Street cleansing 587 547 1,094 – 2,228

Total 7,336 6,649 9,088 – 23,073

Capital Consultancies 296 53 – – 349 Buildings 3,214 14 – – 3,228 Roads 100 – – – 100

Total 3,609 67 – – 3,676 FINANCIAL REPORT 144 Moreland City Council

NOTE 33 (CONT’D)

Not later Later than Later than Later than Total than 1 year 1 year and 2 years 5 years not later and not later than 2 years than 5 years

$’000 $’000 $’000 $’000 $’000

2014 Operating Garbage collection 8,275 8,939 17,359 – 34,573 Administration 948 734 174 – 1,856 Cleaning contracts for council buildings 696 – – – 696 Leisure centres 101 9 – – 110 IT systems support 1,332 – – – 1,332 Recycling (500) (500) (1,000) – (2,000) Social services 62 – – – 62 Libraries 146 146 53 – 345 Street cleansing 21 – – – 21

Total 11,081 9,328 16,586 – 36,995

Capital Works – – – – –

Total – – – – – Brunswick Library

NOTE 34 Operating leases a) Operating lease commitments At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use within Council’s activities (these obligations are not recognised as liabilities):

2015 $’000 2014 $’000

Not later than 1 year 2,317 943 Later than 1 year and not later than 5 years 6,530 2,015 Later than 5 years – – 8,847 2,958 b) Operating lease receivables The Council has entered into commercial property leases on its investment property, consisting of surplus freehold office and/or retail complexes. These properties held under operating leases have remaining non-cancellable lease terms of between 1 and 10 years. All leases include a CPI based revision of the rental charge annually. Future minimum rentals receivable under non-cancellable operating leases are as follows:

Not later than 1 year 2,187 1,681 Later than 1 year and not later than 5 years 5,280 6,712 Later than 5 years 5,524 23,018 12,992 31,411 FINANCIAL REPORT 146 Moreland City Council

NOTE 35 Contingent liabilities The VBI is to be used as the primary Funding calls funding indicator. Because the VBI and contingent assets If the defined benefit category is was above 100%, the actuarial in an unsatisfactory financial position Contingent liabilities investigation determined the defined at actuarial investigation or the benefit category was in a satisfactory Council has obligations under a defined benefit category‘s VBI is financial position and that no change defined benefit superannuation below its shortfall limit at any time was necessary to the defined benefit scheme that may result in the need other than the date of the actuarial category’s funding arrangements to make additional contributions investigation, the defined benefit from prior years. to the scheme to ensure that the category has a shortfall for the liabilities of the fund are covered by purposes of SPS 160 and the Fund the assets of the fund. As a result is required to put a plan in place so of the increased volatility in financial that the shortfall is fully funded within markets the likelihood of making such Net investment return 7.50% p.a. three years of the shortfall occurring. contributions in future periods has The Fund monitors its VBI on a increased. At this point in time it is Salary inflation 4.25% p.a. quarterly basis and the Fund has not known if additional contributions set its shortfall limit at 97%. Price inflation (CPI) 2.75% p.a. will be required, their timing or In the event that the Fund Actuary potential amount. determines that there is a shortfall Vision Super has advised that the estimated VBI at 30 June 2015 was 105.8% based on the above requirement, Funding arrangements the Fund’s participating employers Council makes employer (including Council) are required to Employer contributions contributions to the defined benefit make an employer contribution to category of the Fund at rates Regular contributions cover the shortfall. determined by the Trustee on On the basis of the results of the Using the agreed methodology, the advice of the Fund’s Actuary. most recent full actuarial investigation the shortfall amount is apportioned The Fund’s latest actuarial conducted by the Fund’s Actuary between the participating employers investigation was held as at 30 June as at 30 June 2014, Council makes based on the pre-1 July 1993 2014 and it was determined that employer contributions to the and post-30 June 1993 service the vested benefit index (VBI) of the Fund’s Defined Benefit category liabilities of the Fund’s defined defined benefit category of which at rates determined by the Fund’s benefit category, together with Council is a contributing employer Trustee. For the year ended 30 the employer’s payroll at 30 June was 103.4%. To determine the VBI, June 2015, this rate was 9.5% of 1993 and at the date the shortfall the fund Actuary used the following members’ salaries. This rate will has been calculated. long-term assumptions. increase in line with any increase to Due to the nature of the contractual the Superannuation Guarantee (SG) obligations between the participating contribution rate. In addition, Council employers and the Fund, and that reimburses the Fund to cover the the Fund includes lifetime pensioners excess of the benefits paid as and their reversionary beneficiaries, a consequence of retrenchment it is unlikely that the Fund will be above the funded resignation or wound up. retirement benefit. ANNUAL REPORT 147 2014 – 2015

If there is a surplus in the Fund, The VBI is to be used as the primary Fund is required to put a plan in place the surplus cannot be returned to funding indicator. Because the VBI so that the shortfall is fully funded the participating employers. was above 100%, the actuarial within three years of the shortfall investigation determined the defined occurring. The Fund monitors its In the event that a participating benefit category was in a satisfactory VBI on a quarterly basis and the Fund employer is wound-up, the defined financial position and that no change has set its shortfall limit at 97%. benefit obligations of that employer was necessary to the defined benefit will be transferred to that employer’s In the event that the Fund Actuary category’s funding arrangements successor. determines that there is a shortfall from prior years. based on the above requirement, Contingent liabilities the Fund’s participating employers Employer contributions (including Council) are required to Council has obligations under a Regular contributions make an employer contribution to defined benefit superannuation cover the shortfall. scheme that may result in the need On the basis of the results of the to make additional contributions most recent full actuarial investigation Using the agreed methodology, to the scheme to ensure that the conducted by the Fund’s Actuary the shortfall amount is apportioned liabilities of the fund are covered by as at 30 June 2014, Council makes between the participating employers the assets of the fund. As a result employer contributions to the based on the pre-1 July 1993 of the increased volatility in financial Fund’s Defined Benefit category and post-30 June 1993 service markets the likelihood of making such at rates determined by the Fund’s liabilities of the Fund’s defined contributions in future periods has Trustee. For the year ended 30 benefit category, together with increased. At this point in time it is June 2015, this rate was 9.5% of the employer’s payroll at 30 June not known if additional contributions members’ salaries. This rate will 1993 and at the date the shortfall will be required, their timing or increase in line with any increase to has been calculated. potential amount. the Superannuation Guarantee (SG) Due to the nature of the contractual contribution rate. In addition, Council obligations between the participating Funding arrangements reimburses the Fund to cover the employers and the Fund, and that excess of the benefits paid as the Fund includes lifetime pensioners Council makes employer a consequence of retrenchment contributions to the defined benefit and their reversionary beneficiaries, above the funded resignation or it is unlikely that the Fund will be category of the Fund at rates retirement benefit. determined by the Trustee on wound up. the advice of the Fund’s Actuary. If there is a surplus in the Fund, Funding calls The Fund’s latest actuarial the surplus cannot be returned to If the defined benefit category is investigation was held as at 30 June the participating employers. in an unsatisfactory financial position 2014 and it was determined that In the event that a participating at actuarial investigation or the the vested benefit index (VBI) of the employer is wound-up, the defined defined benefit category‘s VBI is defined benefit category of which benefit obligations of that employer below its shortfall limit at any time Council is a contributing employer will be transferred to that employer’s other than the date of the actuarial was 103.4%. To determine the VBI, successor. investigation, the defined benefit the fund Actuary used the following category has a shortfall for the long-term assumptions. purposes of SPS 160 and the FINANCIAL REPORT 148 Moreland City Council

NOTE 35 (CONT’D) NOTE 36

Latest actuarial investigation On 25 July 1994, Council entered Financial instruments surplus amounts into a Guarantee and Indemnity a) Objectives and policies with the Australian and New The Fund’s latest actuarial Zealand Banking Group Limited The Council’s principal financial investigation as at 30 June 2014 and Basketball Stadiums Victoria instruments comprise cash assets, identified the following in the defined Co-Operative Ltd trading as Sports term deposits, receivables (excluding benefit category of which Council Stadiums Victoria, for a bank loan statutory receivables), payables is a contributing employer: for the purposes of building a new (excluding statutory payables) and »» A VBI surplus of $77.1 basketball stadium at Coburg on bank borrowings. ‘Details of the million; and land leased from Council which is significant accounting policies and valued in excess of the contingent methods adopted, including the »» A total service liability liability. The original loan (and extent criteria for recognition, the basis surplus of $236 million of possible Council Exposure) of measurement and the basis on was $800,000. The balance of the which income and expenses are The VBI surplus means that the loan guaranteed by Council, as at recognised, in respect of each class market value of the fund’s assets 30 June 2015 was $480,000 and of financial asset, financial liability supporting the defined benefit therefore a contingent liability and equity instrument is disclosed obligations exceed the vested exists for this amount. in Note 1 of the financial statements. benefits that the defined benefit ‘Risk management is carried out by members would have been senior management under policies entitled to if they had all exited approved by the Council. These on 30 June 2014. 2015 2014 policies include identification and The total service liability surplus $’000 $’000 analysis of the risk exposure to means that the current value of Council and appropriate procedures, the assets in the Fund’s defined Guarantees for controls and risk minimisation. benefit category plus expected loans to other future contributions exceeds the entities 420 480 b) Market risk value of expected future benefits Market risk is the risk that the fair and expenses. Contingent assets value or future cash flows of our Council was notified of the results As at 30 June 2015 there where financial instruments will fluctuate of the actuarial investigation during no contingent assets identified because of changes in market prices. January 2015. by Council (2014 nil). The Council’s exposures to market risk is primarily through interest rate The Council is presently involved risk with only insignificant exposure in several confidential legal matters, to other price risks and no exposure which are being conducted through to foreign currency risk. Council’s solicitors. As these matters are yet to be finalised, and the financial outcomes are unable to Interest rate risk be reliably estimated, no allowance Interest rate risk refers to the risk for these contingencies has been that the value of a financial instrument made in the financial report. or cash flows associated with the instrument will fluctuate due to changes in market interest rates. I Am Moreland Children’s Week Art

Our interest rate liability risk arises c) Credit Risk d) Liquidity risk primarily from long term loans and Credit risk is the risk that a Liquidity risk includes the risk that, borrowings at fixed rates which contracting entity will not complete as a result of our operational liquidity exposes us to fair value interest rate its obligations under a financial requirements or we will not have risk. Cash flow interest rate risk is instrument and cause us to make a sufficient funds to settle a transaction the risk that the future cash flows financial loss. We have exposure to when required, we will be forced to of a financial instrument will fluctuate credit risk on some financial assets sell a financial asset at below value because of changes in market included in our balance sheet. or may be unable to settle or interest rates. Council has minimal To help manage this risk: recover a financial asset. exposure to cash flow interest rate risk through its cash and deposits »» we have a policy for establishing To help reduce these risks we: that are at floating rate. credit limits for the entities we »» have a liquidity policy which deal with Our loan borrowings are sourced targets a minimum and average from major Australian banks by »» we may require collateral level of cash and cash equivalents a tender process. Finance leases where appropriate, and to be maintained are sourced from major Australian »» we only invest surplus funds with »» have a liquidity portfolio structure financial institutions. Overdrafts are financial institutions which have that requires surplus funds to arranged with major Australian a recognised credit rating specified be invested within various bands banks. We manage interest rate in our investment policy. of liquid instruments risk on our net debt portfolio by: »» monitor budget to actual » diversification of » There are no material financial performance on a regular investment product assets which are individually basis, and »» monitoring of return determined to be impaired. »» set limits on borrowings relating on investment, and We may also be subject to credit to the percentage of loans to »» benchmarking of returns and risk for transactions which are not rate revenue and percentage comparison with budget. included in the balance sheet, such of loan principal repayments as when we provide a guarantee to rate revenue. for another party. Details of our There has been no significant change contingent liabilities are disclosed in the Council’s exposure, or its The Council’s maximum exposure to in note 35. objectives, policies and processes liquidity risk is the carrying amounts for managing interest rate risk or the The maximum exposure to of financial liabilities as disclosed in methods used to measure this risk credit risk at the reporting date the face of the balance sheet and from the previous reporting period. to recognised financial assets is the amounts related to financial the carrying amount, net of any guarantees disclosed in Note 35, Interest rate movements have not provisions for impairment of those and is deemed insignificant based been sufficiently significant during assets, as disclosed in the balance on prior periods’ data and current the year to have an impact on the sheet and notes to the financial assessment of risk. Council’s year end result. statements. Council does not There has been no significant hold any collateral. change in Council’s exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk FINANCIAL REPORT 150 Moreland City Council

NOTE 36 (CONT’D) from the previous reporting period. f) Sensitivity disclosure analysis With the exception of borrowings, all financial Taking into account past performance, future liabilities are expected to be settled within normal expectations, economic forecasts, and management’s terms of trade. Details of the maturity profile knowledge and experience of the financial markets, for borrowings are disclosed at Note 28. Council believes the following movements are ‘reasonably possible’ over the next 12 months: Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. »» A parallel shift of + 1% and -1% in market interest rates (AUD) from year-end rates of 2.44%. e) Fair value These movements will not have a material impact Unless otherwise stated, the carrying amount on the valuation of Council’s financial assets and of financial instruments reflect their fair value. liabilities, nor will they have a material impact on the results of Council’s operations. Fair value hierarchy Council’s financial assets and liabilities are not NOTE 37 valued in accordance with the fair value hierarchy , Council’s financial assets and liabilities are Events occurring measured at amortised cost. after balance date No matters have occurred after balance date that require disclosure in the financial report.

COUNCILLORS CHIEF EXECUTIVE OFFICER Councillor Meghan Hopper Peter Brown (Deputy Mayor 1 July – (Resigned 31 January 2015) Nerina Di Lorenzo 27 October 2014 and Mayor Councillor Oscar Yildiz (Appointed 1/2/15) 27 October 2014 to current) Councillor Lita Gillies Peter Brown Councillor Helen Davidson (Resigned 31/1/15) (Deputy Mayor 27 October Councillor John Kavanagh 2014 to current) Councillor Lenka Thompson Councillor Lambros Tapinos Councillor Michael Teti (Mayor 1 July 2014 to 27 October 2014) Councillor Samantha Ratnam Nerina Di Lorenzo Councillor Sue Bolton (Appointed 1 February 2015) Councillor Rob Thompson ANNUAL REPORT 151 2014 – 2015

The number of senior officers other than the NOTE 38 responsible persons, are shown below in Related party transactions their relevant income bands: i) Responsible persons 2015 2014 Names of persons holding the position of No. No. a responsible person at the Council at any time during the year are: $136,000 – $139,999 5 4 $140,000 – $149,999 2 2 ii) Remuneration of responsible persons $150,000 – $159,999 1 5 The numbers of responsible persons whose $160,000 – $169,999 5 3 total remuneration from Council and any related entities, excluding retirement benefits, $170,000 – $179,999 5 4 fall within the following bands: $190,000 – $199,999 2 1 $210,000 – $219,999 1 – 2015 2014 No. No. $220,000 – $229,999 1 – $230,000 – $239,999 – 3 $20,000 – $29,999 – 9 $240,000 – $249,999 2 – $30,000 – $39,999 9 – $270,000 – $279,999 – 1 $50,000 – $59,999 1 1 24 23 $60,000 – $69,999 – 1 $70,000 – $79,999 1 – $120,000 – $129,999 1 – Total remuneration for the reporting year for $360,000 – $369,999 – 1 senior officers included above, amounted to: $370,000 – $379,999 1 – 2015 No. – $4,169,014 2014 No. – $3,982,425 13 12

Total remuneration for the reporting year for iv) Responsible persons retirement benefits responsible persons included above amounted to: No retirement benefits have been made by the 2015 No. – $899,454 Council to a responsible person. (2013/14, $Nil). 2014 No. – $748,893 v) Loans to responsible persons No loans have been made, guaranteed or secured iii) Senior officers remuneration by the Council to a responsible person during the A senior officer other than a responsible reporting year (2013/14, $Nil). person, is an officer of Council who: a) has management responsibilities and v) Transactions with responsible persons reports directly to the Chief Executive; or No transactions other than remuneration payments b) whose total annual remuneration or the reimbursement of approved expenses were exceeds $136,000 entered into by Council with responsible persons, or related parties of such responsible persons during the reporting year (2013/14, $Nil). FINANCIAL REPORT 152 Moreland City Council

INDEPENDENT AUDITOR’S REPORT FOR FINANCIAL STATEMENTS ANNUAL REPORT 153 2014 – 2015 FINANCIAL REPORT 154 Moreland City Council

CERTIFICATION OF THE FINANCIAL STATEMENTS Sydney Road Phone (03) 9240 1111 Email [email protected] Send Locked Bag 10, Moreland, Victoria 3058

moreland.vic.gov.au

2015/NOV24/DSD372